WEBVTT - Taiwan's Earthquake and Disney's Proxy Battle 0:00:01.480 --> 0:00:06.800 From Mahard where Innovations, Money and Power Collie in Silicon Valley, NBN. 0:00:07.120 --> 0:00:11.160 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.800 --> 0:00:27.240 I'm Caroline he at Bloomberg's world headquarters in New I 0:00:27.320 --> 0:00:27.880 med louveload. 0:00:27.960 --> 0:00:29.920 This is Bloomberg Technology. 0:00:29.520 --> 0:00:32.479 Coming up the latest updates from the earthquake in Taiwan. 0:00:32.840 --> 0:00:35.400 That's as the island faces its worst seismic event in 0:00:35.440 --> 0:00:36.320 twenty five years. 0:00:36.440 --> 0:00:38.000 Full coverage ahead. 0:00:37.920 --> 0:00:40.280 And then look at the broader implications of this human 0:00:40.360 --> 0:00:41.279 tragedy for. 0:00:41.240 --> 0:00:42.199 The global economy. 0:00:42.400 --> 0:00:45.680 Plus Disney's months long proxy battle nears its end as 0:00:45.720 --> 0:00:49.239 shareholder's place their final votes in the battle between the 0:00:49.360 --> 0:00:52.040 mouse House and Tree, and will sit down with one 0:00:52.080 --> 0:00:53.880 shareholder Ross Gerber. 0:00:53.920 --> 0:00:57.720 And Spotify and announces its rising prices again and several 0:00:57.760 --> 0:01:00.240 markets for the second time in a year. It's all 0:01:00.240 --> 0:01:04.200 step towards researching a long term profitability. We'll discuss that 0:01:04.440 --> 0:01:06.120 and so much more throughout the app at first to 0:01:06.200 --> 0:01:07.520 check on in these public. 0:01:07.200 --> 0:01:08.760 Markets and look a reprieve. 0:01:08.880 --> 0:01:10.880 We've got a strong set of data when it comes 0:01:10.920 --> 0:01:12.800 to ADP numbers, when it comes to the labor force 0:01:12.840 --> 0:01:14.480 in the US, but maybe it just to pull back 0:01:14.520 --> 0:01:17.080 in the services area that breathes life into the equity market. 0:01:17.120 --> 0:01:19.240 After the biggest sell off in a month yesterday, we're 0:01:19.280 --> 0:01:21.400 up five tens percent on the Nasdaq. I'm looking at a 0:01:21.319 --> 0:01:24.240 tenure yield that just continues to crescendo higher at the moment, 0:01:24.480 --> 0:01:27.200 and this is borrowing costs really move with the idea 0:01:27.240 --> 0:01:29.399 that the market thinks maybe we won't get those three 0:01:29.480 --> 0:01:33.240 rate cuts that the Fed Reserve has signaled for this year. 0:01:33.360 --> 0:01:36.520 I'm looking though, also what happened in Taiwan, trading notably 0:01:36.560 --> 0:01:39.080 down by some six tens percent, not an enormous move 0:01:39.160 --> 0:01:41.800 after what was a serious human tragedy and one that 0:01:41.840 --> 0:01:44.199 has implications on technology that will dive into in a moment. 0:01:44.240 --> 0:01:44.800 Look at what's. 0:01:44.640 --> 0:01:46.920 Happening in the world of crypto, just briefly, because this 0:01:47.000 --> 0:01:49.280 acid a choice at the moment, currently actually up one 0:01:49.280 --> 0:01:51.000 point four percent, just spiking a little bit in the 0:01:51.080 --> 0:01:53.200 last couple of hours of training. We're still only at 0:01:53.240 --> 0:01:56.440 the sixty six thousand dollars level. There's market moves, the 0:01:56.480 --> 0:01:59.000 fact that the ETF flows perhaps a slowed somewhat, and 0:01:59.040 --> 0:02:02.080 what that means for VOLI trading over in Asia, interestingly, 0:02:02.080 --> 0:02:04.320 particularly when it comes to some of the algorithms that 0:02:04.400 --> 0:02:06.480 end up selling bitcoin on the back when we get 0:02:06.480 --> 0:02:08.240 the inflow and outflow data from ETS. 0:02:08.240 --> 0:02:09.840 But and you're going to focus more on Asia right now. 0:02:09.880 --> 0:02:13.079 Yeah, These are the US listed shares of the technology 0:02:13.080 --> 0:02:17.559 companies impacted in Taiwan. TSMC, the world's biggest contract manufacturer 0:02:17.600 --> 0:02:21.000 for chips front and center. The ADRs have risen because 0:02:21.000 --> 0:02:23.800 of a positive operational update. Will bring you the details 0:02:23.800 --> 0:02:26.720 in just a moment. Micron has a big presence as well. 0:02:26.960 --> 0:02:29.480 It said that it's evaluating the situation on the ground 0:02:29.560 --> 0:02:32.440 in Taiwan, but all of its staff were safe. Caroline, 0:02:32.480 --> 0:02:36.000 bring our audience the absolute latest details of what happened 0:02:36.000 --> 0:02:36.480 in Taiwan. 0:02:36.600 --> 0:02:37.959 Yeah, because occurred last night. 0:02:38.320 --> 0:02:41.560 Seven point four magnitude earthquake struck Taiwan and it was, 0:02:41.600 --> 0:02:44.440 as we've said, the biggest seismic event by magnitude to 0:02:44.480 --> 0:02:47.639 hit the island. So it's nineteen ninety nine now. So far, 0:02:47.880 --> 0:02:51.040 the death toll has reached nine, it's injured close to 0:02:51.080 --> 0:02:54.320 a thousand people, and it's leveled dozens of buildings on 0:02:54.360 --> 0:02:55.560 the eastern side of the island. 0:02:55.639 --> 0:02:57.600 As some of these pictures show shocks. 0:02:57.639 --> 0:02:59.680 In fact, were felt as far away as Japan and 0:02:59.720 --> 0:03:03.120 as but any damage from the quake has been closely 0:03:03.160 --> 0:03:04.760 watched for potential effects look on the. 0:03:04.720 --> 0:03:06.000 Global economy as well. 0:03:06.400 --> 0:03:10.280 Given its technology output, this island is dominant in chip 0:03:10.320 --> 0:03:12.760 manufacturing industry, and it also accounts some more than half 0:03:12.800 --> 0:03:15.680 of global market for laptops and motherboards and network devices. 0:03:15.840 --> 0:03:17.840 And we've got to go into the implications for companies 0:03:17.919 --> 0:03:18.480 right now too. 0:03:18.639 --> 0:03:21.120 Yeah, honing in on the companies that operate in Taiwan 0:03:21.160 --> 0:03:24.360 the island to tech firms are still assessing impact from 0:03:24.400 --> 0:03:28.120 the earthquake. TSMC, the world's number one chip contract manufacturer, 0:03:28.520 --> 0:03:33.160 had halted some chip making equipment and plants and evacuated them. 0:03:33.160 --> 0:03:36.360 But these are the latest headlines from TSMC, the company 0:03:36.400 --> 0:03:38.720 saying in the last half an hour they don't see 0:03:38.840 --> 0:03:43.000 damage to critical tools, including all their EUV gear, and 0:03:43.080 --> 0:03:48.600 they're expecting to resume production of semiconductors overnight. Let's bring 0:03:48.600 --> 0:03:51.800 in Bloomberg z And King, who leads semiconductor coverage at 0:03:51.840 --> 0:03:55.560 Bloomberg Technology Ian. What is the latest please for TSMC. 0:03:56.640 --> 0:03:59.040 Yeah, I mean what they've done is come out and 0:03:59.160 --> 0:04:02.560 really reassure people that yes, this isn't great. Yes, there's 0:04:02.560 --> 0:04:06.240 been an impact, but it's still within the bounds of 0:04:06.280 --> 0:04:10.200 what we can fix and fix quickly given our contingency plans. 0:04:10.280 --> 0:04:12.520 So there will be some wafers loss, there will be 0:04:12.560 --> 0:04:15.360 a bit of manufacturing loss, but not the kind of 0:04:15.440 --> 0:04:20.240 months of disruptions that we've seen in the distant past 0:04:20.320 --> 0:04:23.280 and with other supply chain disruptions that we saw during 0:04:23.279 --> 0:04:23.880 the pandemic. 0:04:24.360 --> 0:04:26.080 Just give us the context a little bit of just 0:04:26.120 --> 0:04:30.680 how integral Taiwan TSMC players like fox Conn as well 0:04:30.720 --> 0:04:33.279 when it comes to phones and laptops are to the 0:04:33.279 --> 0:04:34.080 global economy. 0:04:34.120 --> 0:04:38.120 And yeah, I mean everything goes through TSMC. If it's 0:04:38.680 --> 0:04:41.680 the processor in your iPhone designed by Apple, it's made 0:04:41.720 --> 0:04:47.000 by TSMC. If it's the supercomputer in a data center 0:04:47.360 --> 0:04:50.200 based on a chip from Nvidia, that's going through TSMC. 0:04:50.360 --> 0:04:54.000 If it's a modem that's allowing your phone to connect 0:04:54.000 --> 0:04:57.960 to a network that's Qualcom, that's going through TSMC, I mean, 0:04:57.960 --> 0:04:59.320 the list goes on and on and on. 0:04:59.400 --> 0:05:00.799 Everybody depends on them. 0:05:00.920 --> 0:05:04.440 Okay, let's talk about what else is operational on the 0:05:04.480 --> 0:05:06.640 ground in Taiwan. I it was interested to read about 0:05:06.680 --> 0:05:11.960 Micron's footprint, For example, Ian there's a lot that happens there. 0:05:12.080 --> 0:05:16.240 We're talking about semiconductor manufacturing, but it's also at the 0:05:16.279 --> 0:05:19.400 circuit board level, the context of laptops and PCs. What 0:05:19.440 --> 0:05:22.560 other names are impacted and which areas of the technology 0:05:22.600 --> 0:05:23.880 economy should we look out for. 0:05:24.760 --> 0:05:28.800 Yeah, I mean, historically Taiwan was an absolute center of 0:05:29.800 --> 0:05:33.240 effectively assembly of electronic devices. A lot of that has 0:05:33.360 --> 0:05:36.920 moved to mainland China, so it's not as crucial as 0:05:36.960 --> 0:05:39.000 it used to be in that area. But there are 0:05:39.040 --> 0:05:42.359 still a lot of technology companies that work for the 0:05:42.520 --> 0:05:46.640 sort of better well known names like Dell, like HP 0:05:46.839 --> 0:05:50.279 that also operate in Taiwan. And as you mentioned Micron, 0:05:50.360 --> 0:05:53.000 that's memory chips. Memory chips are really important as well 0:05:53.040 --> 0:05:56.039 for your PC, for your smartphone. 0:05:55.360 --> 0:05:59.840 And there is notable reaction across competitors right now when 0:05:59.839 --> 0:06:02.240 you're looking at the rest of the chip stocks, I'm 0:06:02.279 --> 0:06:05.960 looking at the well, the Philadelphia Semonconductor Index, most in 0:06:06.000 --> 0:06:08.679 the green, Micron leading it, Broadcom Land Research. 0:06:09.080 --> 0:06:11.040 But lastly, there's an interesting exception. 0:06:11.200 --> 0:06:13.479 And you would have thought Intel Arrival would have done 0:06:13.920 --> 0:06:16.120 well out of the back of any supply chain headaches 0:06:16.160 --> 0:06:17.560 for rivals, but not so today. 0:06:18.720 --> 0:06:22.720 Yeah, this is an unfortunate kind of consequences that any 0:06:22.880 --> 0:06:25.760 bad news for TSMC should be good news for what 0:06:25.800 --> 0:06:28.360 Intel is trying to do, which has effectively become a 0:06:28.400 --> 0:06:32.800 competitor for TSMC. It should have people saying, hey, we 0:06:32.880 --> 0:06:35.920 need to diversify geographically. Who can we do that, Well, 0:06:35.960 --> 0:06:39.240 here's Intel. But because of some of the financial disclosures 0:06:39.240 --> 0:06:42.039 that Intel put out there last night, that, unfortunately, at 0:06:42.120 --> 0:06:45.040 least in terms of Intel stock price, is not the case. 0:06:45.760 --> 0:06:46.039 Ian. 0:06:46.200 --> 0:06:49.800 The story with Intel is that it has different businesses, right, 0:06:49.839 --> 0:06:52.480 and we're talking in this instance about the foundry business. 0:06:52.880 --> 0:06:55.880 Intel wants to do what TSMC already does, be a 0:06:55.920 --> 0:07:00.200 contract manufacturer for third parties. And when I was looking 0:07:00.279 --> 0:07:03.560 through the financial disclosures they made, it's not just that 0:07:03.640 --> 0:07:06.799 they're booking less revenue on foundry. It's not just that 0:07:06.880 --> 0:07:10.120 the losses are widening. But their projections to the end 0:07:10.120 --> 0:07:12.960 of the decade make you a little bit concerned that 0:07:13.000 --> 0:07:15.640 they actually will get back to the era where Intel 0:07:15.680 --> 0:07:18.040 had north of sixty percent margins and they were the 0:07:18.080 --> 0:07:22.000 technology leader. That's the story that Pat Gelsinger, the CEO, 0:07:22.040 --> 0:07:23.960 has been trying to tell all three of us for 0:07:24.080 --> 0:07:27.800 quite a long time. Just explain I guess the shift 0:07:27.880 --> 0:07:30.560 in timeline that Intel disclosed last night. 0:07:31.480 --> 0:07:35.400 Yeah, I mean there wasn't a shock for those who've 0:07:35.440 --> 0:07:39.040 been studying it closely, but it was arguably a reminder that, look, 0:07:39.400 --> 0:07:43.200 this is an extremely expensive turnaround. You could argue that 0:07:43.200 --> 0:07:47.320 Gelsinger was intellectually honest and upfront about things, and people 0:07:47.360 --> 0:07:50.040 really should have been paying attention, but some of them weren't. 0:07:50.080 --> 0:07:52.880 If you're a casual investor, if you've got other options, 0:07:52.880 --> 0:07:56.240 why wouldn't you be investing in in Video, qualcom, TSMS, 0:07:56.480 --> 0:07:59.400 all of these other companies. What Intel did was really 0:07:59.440 --> 0:08:02.040 remind people that, yes, they're on a tough road and 0:08:02.080 --> 0:08:03.480 they still have a ways to go. 0:08:03.840 --> 0:08:06.440 In The stock is down six point eight percent. Intel 0:08:06.480 --> 0:08:09.480 they have a new CFO. Who is it all right? 0:08:09.480 --> 0:08:12.840 It's a new CFO for that foundry division. Yeah, the 0:08:12.840 --> 0:08:14.200 main CFO is still there. 0:08:14.800 --> 0:08:15.160 Got it? 0:08:15.680 --> 0:08:18.280 Than King, We thank you really taking us around the 0:08:18.320 --> 0:08:19.800 world the chip industry today. 0:08:20.160 --> 0:08:21.440 We appreciate it enormously. 0:08:21.480 --> 0:08:24.440 Meanwhile, coming up, while we're going back to Disney's months 0:08:24.520 --> 0:08:28.280 long proxy battle with Trains Nelson Pelts, when it's finally 0:08:28.280 --> 0:08:28.920 coming to an end. 0:08:29.080 --> 0:08:31.760 Today is the day that we get the shareholder meeting. 0:08:31.800 --> 0:08:34.280 We're going to be discussing it next with one key shareholder, 0:08:34.320 --> 0:08:36.559 Gerbert Kawasaki CEO Ross Gerber. 0:08:36.880 --> 0:08:44.920 This is bo Make Technology. 0:08:50.160 --> 0:08:53.840 Today is the day Disney's shareholder meeting will determine the 0:08:53.840 --> 0:08:56.880 future of the entertainment company's boardroom, and a winner will 0:08:56.920 --> 0:09:00.760 emerge from a lengthy proxy battle between them and the 0:09:00.800 --> 0:09:04.280 activist events investor that is Nelson Peltz. Now, MIXT sources 0:09:04.320 --> 0:09:06.439 say that, look, Disney is close to clinching and win 0:09:06.520 --> 0:09:10.800 over Pelts and Tryan with vanguards backing that of Disney. 0:09:11.240 --> 0:09:14.400 Let's talk to Goebel Kawasaki CEO Ross Gerber, who you've 0:09:14.400 --> 0:09:17.120 thrown your support behind Disney, behind. 0:09:16.760 --> 0:09:17.319 Bob I Go. 0:09:17.440 --> 0:09:19.920 And it looks as though, well most of the investor 0:09:19.960 --> 0:09:21.920 based retail and some of their big shareholders are doing 0:09:21.960 --> 0:09:22.240 the same. 0:09:23.120 --> 0:09:26.240 Well, yeah, I mean I gres phenomenal executive. This is 0:09:26.440 --> 0:09:29.760 Nelson Peltz. Is absurd. He's wasted so much time and money. 0:09:30.200 --> 0:09:32.920 You know, he's made a ton of money now on 0:09:32.960 --> 0:09:36.600 this activist campaign irrelevant of really, he's going to accomplish nothing. 0:09:36.600 --> 0:09:39.720 I think Disney's gonna win this, you know, pretty solidly 0:09:39.760 --> 0:09:42.920 with the backing of the institutional shareholders you know, as 0:09:42.960 --> 0:09:44.080 well as many retail. 0:09:43.800 --> 0:09:45.280 Shareholders like we are. 0:09:45.960 --> 0:09:48.560 So the bottom line in this is, how is Nelson 0:09:48.640 --> 0:09:52.360 Peltz gonna do anything better for Disney other than cut costs? 0:09:52.360 --> 0:09:53.719 And that's already. 0:09:53.520 --> 0:09:55.960 Happened, mister Geber. 0:09:56.000 --> 0:10:00.160 Whether mister Pelts is absurd or not, he set out 0:10:00.200 --> 0:10:03.040 in a one hundred and thirty three page manifesto a 0:10:03.040 --> 0:10:07.480 lot of grievances right, focusing on the streaming business. And 0:10:07.520 --> 0:10:12.840 so let's say whatever happens right, say Iiger is successful. 0:10:13.240 --> 0:10:16.320 The question that mister Pelt's raised was how do you 0:10:16.440 --> 0:10:21.240 get that streaming business to profitability without depending on a 0:10:21.280 --> 0:10:25.520 strategy that is raising prices for consumers while cutting the 0:10:25.520 --> 0:10:28.600 costs of content production. Do you have firm in your 0:10:28.640 --> 0:10:30.160 mind and answer to that question. 0:10:30.960 --> 0:10:33.240 Show go. That is the answer. 0:10:33.679 --> 0:10:36.440 When you have shows and you have content that people 0:10:36.480 --> 0:10:39.280 want to see, they will pay for subscriptions. 0:10:38.880 --> 0:10:41.000 It's just what's happening in streaming. 0:10:41.000 --> 0:10:43.880 We're seeing it with sports subscriptions now too, where people 0:10:43.880 --> 0:10:46.120 are signing up to watch a game on Paramount Plus 0:10:46.400 --> 0:10:48.680 and then they're sticking sixty to seventy percent of the 0:10:48.720 --> 0:10:52.400 time after the game's over. So the shows the hit shows, 0:10:52.440 --> 0:10:56.280 the talent, the ip that bring viewers in is what 0:10:56.440 --> 0:11:00.360 makes these streamers profitable. Like Netflix every week now Flets 0:11:00.400 --> 0:11:03.360 has something good on every week. So finally Hulu and 0:11:03.400 --> 0:11:06.720 Disney Plus are stepping up their game. They've combined the apps, 0:11:06.720 --> 0:11:08.480 They've built it onto one platform. 0:11:08.520 --> 0:11:10.240 Now there's a tech side of this. 0:11:10.240 --> 0:11:12.760 This is a big thing that Disney's done to cut 0:11:12.800 --> 0:11:15.880 costs and make their library even more accessible to many 0:11:15.920 --> 0:11:19.559 different you know platforms. But the bottom line is the 0:11:19.600 --> 0:11:23.439 shows drive Disney's success, and they have hit shows right 0:11:23.480 --> 0:11:26.880 now on their platforms. And that's the Eiger magic that 0:11:27.040 --> 0:11:28.040 pelants can never do. 0:11:28.760 --> 0:11:31.560 Goeberg Kawasaki your affirm according to the data or my 0:11:31.640 --> 0:11:34.679 Bloomberg termo one hundred and thirty one thousand Disney shares 0:11:35.240 --> 0:11:39.239 or so, what is your firm's physician on Eiger succession? 0:11:40.600 --> 0:11:43.320 Well, you know, being a Disney shareholder in my whole 0:11:43.360 --> 0:11:46.360 life and going through the you know past with you 0:11:46.440 --> 0:11:50.320 know Eisner and all the trials and tribulations. Eiger is 0:11:50.320 --> 0:11:53.760 a young CEO based off the average age of a 0:11:53.800 --> 0:11:54.840 presidential candidate. 0:11:55.280 --> 0:11:57.560 So I'm not sure what will happen next. 0:11:57.600 --> 0:12:00.280 I think there's some confident executives that he can you know, 0:12:00.360 --> 0:12:03.360 pick to take over that are hopefully more digitally focused, 0:12:04.040 --> 0:12:06.959 and he's got some of the same team members around 0:12:07.040 --> 0:12:09.920 him from you know, building Disney Plus in the past. 0:12:09.960 --> 0:12:11.840 So I'm not sure where he goes with this. 0:12:12.520 --> 0:12:15.760 We'd like to see an internal succession, as Disney typically 0:12:15.800 --> 0:12:18.640 does that, but it's going to be really hard to 0:12:18.679 --> 0:12:20.800 find a replacement for Aiger, as it's always been a 0:12:20.800 --> 0:12:23.120 big challenge for Disney over its long history. 0:12:23.200 --> 0:12:24.000 Just really quick carry. 0:12:24.120 --> 0:12:26.040 The argument that Ross has made before is that if 0:12:26.120 --> 0:12:28.400 Joe Biden can run for reelection as president, then Bob 0:12:28.440 --> 0:12:30.160 Ayger can do another ten years at Disney. 0:12:30.200 --> 0:12:32.760 Oh yeah, yeah, he's Rus. I just rereat share to 0:12:33.320 --> 0:12:34.840 make it simple for the audience. 0:12:34.880 --> 0:12:38.360 Carry. Sorry, yeah, no, I mean Iiger is in great shape. 0:12:38.400 --> 0:12:41.920 I mean he's mentally and physically fit, and you know 0:12:42.000 --> 0:12:44.280 he's riding his bike on Sunday mornings at six am, 0:12:44.320 --> 0:12:45.160 like twenty miles. 0:12:45.400 --> 0:12:47.880 But he's shown in the past Ross that he wanted 0:12:47.920 --> 0:12:50.240 to exit and then he had to come back, and 0:12:50.280 --> 0:12:53.720 I think ultimately the new board has really been focused 0:12:53.720 --> 0:12:56.560 on trying to understand where the path of the future is. 0:12:56.600 --> 0:12:59.440 Who are in the internal candidates with the external candidates, 0:12:59.720 --> 0:13:02.000 and it's got to be yes, someone who's digitally focused. 0:13:02.320 --> 0:13:05.079 But Disney is a behemoth. It isn't just. 0:13:05.160 --> 0:13:06.840 An exposure to digital is an. 0:13:06.720 --> 0:13:11.119 Exposure to parks, to experiences, to cruises, it's an experience 0:13:11.160 --> 0:13:14.520 to big hit shows that go onto your movie theaters. 0:13:15.120 --> 0:13:18.040 How can we find someone who can be basically the 0:13:18.400 --> 0:13:21.319 consolidated leader of a business like this, Well, you. 0:13:21.400 --> 0:13:24.240 Just brought up probably one of the more challenging issues, right, 0:13:24.360 --> 0:13:27.760 Like running parks and resorts is nothing like running the streamer, 0:13:27.880 --> 0:13:31.200 and so somebody having these sort of skills to do 0:13:31.280 --> 0:13:33.880 it all is really a big ask. And hence why 0:13:34.000 --> 0:13:36.920 I heard and they got James Gorman on the board 0:13:36.960 --> 0:13:39.800 to try to help succession planning. But it's a challenge 0:13:39.840 --> 0:13:44.120 to find somebody with that type of operational expertise like period. 0:13:44.400 --> 0:13:47.200 So what I think is Disney's really big, and when 0:13:47.240 --> 0:13:49.920 you look at the ESPN piece that they're sort of 0:13:49.960 --> 0:13:53.360 carving into its own sort of business, and then parks 0:13:53.360 --> 0:13:56.040 and resources and experience and then you know the rest 0:13:56.120 --> 0:13:58.839 of the business, the streaming in the studios, I think 0:13:58.880 --> 0:14:02.600 they really need free, strong leaders that are sort of 0:14:02.960 --> 0:14:06.600 have a CEO that's great at running those. 0:14:06.440 --> 0:14:09.200 Three leaders because each leader is going to have to 0:14:09.240 --> 0:14:09.640 be different. 0:14:09.679 --> 0:14:11.920 And this is the problem that a lot of massive companies, 0:14:12.080 --> 0:14:15.040 whether it be Apple, Microsoft, whatever, are facing is they've 0:14:15.080 --> 0:14:16.680 become so big. 0:14:16.720 --> 0:14:20.480 And so profitable. Can one person really run all of this? 0:14:20.720 --> 0:14:23.800 You know? So I think we're you know, this is 0:14:23.840 --> 0:14:25.000 a challenge for a lot. 0:14:24.880 --> 0:14:27.600 Of big companies, including Disney, is where do we go 0:14:27.640 --> 0:14:30.600 from here with secession planning? Because finding another Eiger is 0:14:30.640 --> 0:14:31.760 obviously not going to happen. 0:14:32.360 --> 0:14:36.320 One reason I might want to hand over the baton 0:14:36.480 --> 0:14:38.640 sooner rather than later is because he's fed up with 0:14:38.760 --> 0:14:39.880 mudslinging coming from. 0:14:39.720 --> 0:14:40.880 People like Elon Musk. 0:14:41.040 --> 0:14:44.160 And it's interesting that Elon Musk has decided to pile 0:14:44.240 --> 0:14:46.960 on it the last minute saying he would support Well 0:14:47.640 --> 0:14:50.400 Pelts joining the board. We know he's got an axe 0:14:50.400 --> 0:14:54.000 to grind against Bobbigo. What did you make of that coming? 0:14:54.240 --> 0:14:56.960 Well, hopefully Eli could keep his job as CEO of 0:14:57.000 --> 0:14:59.880 Tesla at this point alone make a record. 0:15:00.360 --> 0:15:03.160 For activists, because what's going to happen is Pelts is going. 0:15:03.080 --> 0:15:06.240 To buy Tesla Max and be calling the board of 0:15:06.520 --> 0:15:10.200 Tesla because an opportunity is arising for an activist in. 0:15:10.080 --> 0:15:11.800 Tesla right now. That looks amazing. 0:15:11.880 --> 0:15:14.600 So the best thing Elon could do is get his 0:15:14.760 --> 0:15:18.000 butt back to Tesla and start working on getting these 0:15:18.040 --> 0:15:21.080 cars out. You know, he's got to get cyber truck out, 0:15:21.120 --> 0:15:23.560 he's got to get full self driving working. He's got 0:15:23.560 --> 0:15:26.640 to you know, deal with competition. And instead he's tweeting 0:15:26.640 --> 0:15:29.760 every day a bunch of garbage. So, you know, look 0:15:29.800 --> 0:15:33.320 at the performance of Disney versus I think somebody tweeted this. 0:15:33.440 --> 0:15:36.000 You know, what's the performance in Disney versus Tesla over 0:15:36.040 --> 0:15:38.960 the last six months. And fortunately Disney's the top holding 0:15:39.000 --> 0:15:41.560 in my fun GK And you know, our clients. We 0:15:41.600 --> 0:15:44.480 have very close relationships with our clients and they love 0:15:44.600 --> 0:15:47.640 these companies. But sometimes things change, and we've had to 0:15:47.680 --> 0:15:50.080 deal with the changes in Tesla for the negative and 0:15:50.600 --> 0:15:51.440 for the positive. 0:15:51.480 --> 0:15:53.160 We are seeing positive. 0:15:53.000 --> 0:15:55.640 Changes for Disney and it's become a very good returning 0:15:55.680 --> 0:15:56.960 investment for our clients. 0:15:57.960 --> 0:16:01.720 Just give us the context on Elon Musk running Tesla, 0:16:01.800 --> 0:16:04.040 the environment with which he's running it at the moment, 0:16:04.120 --> 0:16:08.280 the response on X of basically calling out certain individuals 0:16:08.320 --> 0:16:13.320 posts calling them idiots, because the ev landscape itself is 0:16:13.800 --> 0:16:17.800 contracting byd sales dropped forty two percent. He's referring to 0:16:17.800 --> 0:16:20.440 the competition coming from China. In fact, yes, we saw 0:16:20.440 --> 0:16:25.120 a pullback in terms of deliveries from Tesla yesterday, but 0:16:25.200 --> 0:16:28.520 actually reclaimed it spots the number one provider of EV's globally. 0:16:28.800 --> 0:16:30.960 Can you respond to the criticism that Elon Musk has 0:16:32.120 --> 0:16:34.800 of you, Well, yeah, of your tweet and calling you 0:16:34.840 --> 0:16:36.080 basically an idiot. 0:16:36.520 --> 0:16:37.400 Yeah, yeah, you. 0:16:37.360 --> 0:16:40.840 Know I've been called that many times by Eulon, but somehow, 0:16:41.000 --> 0:16:43.280 you know, I've survived this line. 0:16:43.240 --> 0:16:45.520 And we went to the same college. But that said, 0:16:46.600 --> 0:16:49.640 I think that if you look at global sales of evs. 0:16:49.360 --> 0:16:52.800 It's up thirty five percent year over year. Tesla's losing share. 0:16:52.920 --> 0:16:55.880 Buid EV sales were actually up year over year. It 0:16:55.920 --> 0:16:58.640 was total sales, So it's easy to cherry pick numbers, 0:16:58.640 --> 0:17:01.440 but the EV market is growing. Only nine percent of 0:17:01.560 --> 0:17:04.879 US consumers are buying evs. So really the truth of 0:17:04.920 --> 0:17:06.800 the matter is we can all call names, and we 0:17:06.840 --> 0:17:09.960 can all look around and you know, make excuses. The 0:17:10.000 --> 0:17:12.800 economy is very strong here in the United States. The 0:17:12.840 --> 0:17:15.920 economy in Europe is okay. China is definitely an issue, 0:17:16.000 --> 0:17:18.240 and it affects Tesla, But when you look at the 0:17:18.280 --> 0:17:23.200 gap between production and sales, that's not an economic issue. 0:17:23.400 --> 0:17:27.080 That's a sales issue. So once again the guy throwing 0:17:27.119 --> 0:17:28.960 out names and all this kind of stuff because he 0:17:29.000 --> 0:17:31.680 doesn't like what people are saying about him, mister free speech, 0:17:31.800 --> 0:17:34.280 you know, but the fact of the matter is his 0:17:34.400 --> 0:17:38.159 free speech has cost Tesla shareholders six hundred billion dollars 0:17:38.160 --> 0:17:42.240 in losses, and Tesla car owners have lost fifty billion 0:17:42.320 --> 0:17:43.680 dollars of equity. 0:17:43.320 --> 0:17:44.080 In their vehicles. 0:17:44.240 --> 0:17:46.840 And he's even forced to hurt Ceo to lose his 0:17:46.920 --> 0:17:49.640 job because it was such a bad investment buying Tesla's 0:17:49.680 --> 0:17:52.800 for her. So let's be real, Eli, like, it's time 0:17:52.840 --> 0:17:55.320 for you to grow up and accept reality that you're 0:17:55.359 --> 0:17:58.480 causing enormous damage to one of the most consequential companies 0:17:58.720 --> 0:18:01.560 in the world because your behavior on Twitter, and nobody 0:18:01.600 --> 0:18:03.520 wants to hear his opinions. 0:18:04.040 --> 0:18:04.920 You know that's a fact. 0:18:05.480 --> 0:18:06.720 Ross. I'm just sorry, Caro. 0:18:06.800 --> 0:18:09.639 I've invited Elon onto this program many times, and in 0:18:09.680 --> 0:18:12.119 this case I'll write to him again and say, you know, 0:18:12.600 --> 0:18:14.280 Ross responded to your post on X he can come 0:18:14.320 --> 0:18:17.480 the show. He obviously has declined or to do that, but. 0:18:17.880 --> 0:18:20.280 Throw in the U Penn thing maybe maybe. 0:18:20.400 --> 0:18:22.760 Yeah, Listen, he's not going to debate me. He doesn't 0:18:22.800 --> 0:18:25.159 want to debate me because the fact of the matter is. 0:18:25.160 --> 0:18:27.159 I'm not scared of him, and he's so used to 0:18:27.240 --> 0:18:29.080 bullying everybody out of the business. 0:18:29.320 --> 0:18:30.240 He's not gonna bully me. 0:18:30.440 --> 0:18:33.080 So, you know, the reality is he's got to get 0:18:33.119 --> 0:18:36.000 his focus back on what's important, which is solving climate. 0:18:36.320 --> 0:18:40.000 It's not free speech, So okay, you know, I'm sorry. 0:18:41.040 --> 0:18:43.400 Don't apologize, ros Gerbert. It's great to have you on. 0:18:43.520 --> 0:18:48.359 Gerber Karasaki CEO surviving another day of some munth slinging 0:18:48.400 --> 0:18:51.800 on Twitter or x, but also talking us through Disney 0:18:51.840 --> 0:18:52.120 as well. 0:18:52.160 --> 0:18:56.399 We thank him for it. This is Blue Bang Technology. 0:19:07.760 --> 0:19:09.520 It's time for talking tech. This is what I broke 0:19:09.600 --> 0:19:12.600 last night with the Bloomberg Deal's team. Chipmaker Sarah Brass 0:19:12.600 --> 0:19:16.040 Systems has picked City Group as the lead bank on 0:19:16.080 --> 0:19:19.159 its initial public offering. Sourcings telling us that the Silicon 0:19:19.240 --> 0:19:22.840 Valley company chose the lender after holding discussions with potential 0:19:22.880 --> 0:19:26.199 advisors on a US listing. Sarah Brass is targeting that 0:19:26.280 --> 0:19:28.720 listing in the second half of the year and may 0:19:28.760 --> 0:19:32.560 seek evaluation above the four billion figure it achieved in 0:19:32.560 --> 0:19:35.639 its last twenty twenty one funding round, and during the 0:19:35.680 --> 0:19:38.880 phone call between President Biden and China g the two 0:19:38.880 --> 0:19:39.400 are said to. 0:19:39.359 --> 0:19:40.879 Have discussed TikTok. 0:19:41.200 --> 0:19:44.960