WEBVTT - Restructuring at Meta, Ugly Day For Apple 0:00:02.160 --> 0:00:05.560 From the heart of where innovation, money and power collive 0:00:06.320 --> 0:00:10.840 in Silicon Valley and Beyon this is Bloomberg Technology with 0:00:10.920 --> 0:00:27.120 Emily Jay Imed Ludlow in New York in Family Chang 0:00:27.160 --> 0:00:29.880 This is Bloomberg Technology. Coming up in the next hour. 0:00:30.040 --> 0:00:33.879 Mark Zuckerberg warns Meta employees that are restructuring is on 0:00:33.920 --> 0:00:37.599 the horizon. The company is implementing a hiring freeze and 0:00:37.640 --> 0:00:41.159 will shrink teams to quote, shift energy to other areas. 0:00:41.159 --> 0:00:45.159 Will share more of the transcript obtained by Bloomberg. Plus, 0:00:45.320 --> 0:00:49.680 Apple gets downgraded following Bloomberg's report about iPhone production, and 0:00:49.720 --> 0:00:52.879 now we're learning of a high profile executive leaving the 0:00:52.920 --> 0:00:57.080 company after a crude TikTok of him went viral. And 0:00:57.120 --> 0:00:59.600 we've got to talk about the sell off. Across financial markets, 0:00:59.640 --> 0:01:01.680 the S and P five drops to a twenty two 0:01:01.720 --> 0:01:05.759 month flow as the fed hawks circle, Big Tech takes 0:01:05.760 --> 0:01:07.759 some beating. I want to get straight to that Micron 0:01:08.040 --> 0:01:11.840 conversation and bring in Joanne Pheeny and Advisors, capital management 0:01:11.880 --> 0:01:14.920 partner and portfolio manager Joe and give me a second one. 0:01:14.959 --> 0:01:17.600 I bring you some of the headlines Micron seeing first 0:01:17.680 --> 0:01:20.600 quarter of fiscal first quarter adjusting revenue four to five 0:01:20.760 --> 0:01:22.840 four point five billion dollars. The estimate, of course six 0:01:22.840 --> 0:01:25.559 billion dollars, but some of the commentary around the slow 0:01:25.640 --> 0:01:29.640 down in demand and supply catching up is pretty astonishing. 0:01:29.640 --> 0:01:32.720 We're down much more considerably, and after ours, we've paired 0:01:32.720 --> 0:01:34.880 some of those losses. What's your read on what we're 0:01:34.920 --> 0:01:38.679 seeing from Micron. Yeah, you know, pretty clear investors really 0:01:38.720 --> 0:01:41.360 accepting a pretty weak guide from Micron, and that's what 0:01:41.400 --> 0:01:43.959 they got. But I think they are reassured that Micron 0:01:44.080 --> 0:01:47.640 is cutting capecks by That's what investors were looking for 0:01:48.120 --> 0:01:50.360 and indicates that micro is gonna be real careful about 0:01:50.400 --> 0:01:52.480 adding to the problem. Clearly, we have a lot of 0:01:52.520 --> 0:01:54.840 supply from the memory makers and not enough to may 0:01:54.880 --> 0:01:57.760 have particularly because of the PC weakness that we're seeing. 0:01:57.840 --> 0:01:59.720 You know, they expect PC ship this' to be down 0:02:00.960 --> 0:02:03.560 related to memory, and so you know they're taking the 0:02:03.680 --> 0:02:06.000 right steps. But that just shows you memory is a 0:02:06.120 --> 0:02:08.679 very very tricky place to invest. It's very cyclical. But 0:02:08.760 --> 0:02:10.480 let's try and throw this forward. We kind of look 0:02:10.560 --> 0:02:12.720 to Micron as if it's a crystal ball of what's 0:02:12.720 --> 0:02:15.239 to come in the global economy. What is the story 0:02:15.280 --> 0:02:18.160 when it comes to consumer electronics in which geographies are 0:02:18.160 --> 0:02:21.160 we most concerned about. Well, you know, I think we're 0:02:21.160 --> 0:02:24.919 seeing a worldwide slowdown in some consumer demand, and that's 0:02:25.160 --> 0:02:27.840 Micron is going to pick that up. The real question 0:02:28.120 --> 0:02:31.120 is what's happening beyond the consumer in particular. You know, 0:02:31.160 --> 0:02:32.519 we still have a lot of good data points and 0:02:32.560 --> 0:02:35.680 suggests auto and industrial remains strong. They're still shortages there. 0:02:35.680 --> 0:02:38.040 It's gonna take probably another year to work those through. 0:02:38.560 --> 0:02:40.720 Uh So, you know, companies like Texas Instruments are wealth 0:02:40.760 --> 0:02:42.760 positioned for that. We continue to like them, We've held 0:02:42.760 --> 0:02:44.880 them for a long time of clients. The real question 0:02:44.919 --> 0:02:46.280 I think people are gonna be looking for on the 0:02:46.320 --> 0:02:48.840 call as it continues is what's happening to cloud and 0:02:48.919 --> 0:02:52.200 data center. There's some concerns that firms seeing some consumer 0:02:52.200 --> 0:02:55.119 weakness might slow down their investments, But the long term 0:02:55.160 --> 0:02:58.680 fact in that world is that data usage across all 0:02:58.720 --> 0:03:00.919 sorts of devices is going to continue to increase. We 0:03:00.960 --> 0:03:04.000 need wider pipes, we need more storage. So ultimately, you know, 0:03:04.040 --> 0:03:06.760 companies that play into that area, while they might suffer 0:03:06.760 --> 0:03:08.760 a pause, are going to be really well positioned for 0:03:08.800 --> 0:03:10.560 the long term for investors, and a lot of them 0:03:10.560 --> 0:03:14.000 have gotten cheap, whether it's a sienna or a broadcast. Joanna, 0:03:14.240 --> 0:03:16.720 how did we get this so wrong? I remember talking 0:03:16.760 --> 0:03:19.440 to you, talking to Iatan King, Bloomberg News Chip reporter 0:03:19.919 --> 0:03:23.880 about the vision for a multi multi courter cycle that 0:03:23.919 --> 0:03:26.600 would just go on indefinitely. This was going to happen 0:03:26.639 --> 0:03:30.320 coming out of the pandemic. But that hasn't happened, has it. Yeah, 0:03:30.360 --> 0:03:32.359 you know, I think what we got wrong all of 0:03:32.440 --> 0:03:35.480 us was there was so much spending during the pandemic, 0:03:35.800 --> 0:03:37.880 and that really came on the heels of a very 0:03:37.880 --> 0:03:43.720 strong period from to nineteen really through until the pandemic. 0:03:43.720 --> 0:03:46.520 There are signs actually that inventory were starting to build 0:03:46.560 --> 0:03:49.680 before the pandemic hit, and then that got disrupted by 0:03:49.680 --> 0:03:52.280 the demandering the pandemic for PCs and everything else. And 0:03:52.320 --> 0:03:55.000 so now we're starting to see that side really come off. 0:03:55.000 --> 0:03:58.680 But don't let's not misconstrue the implications. I think cloud 0:03:58.680 --> 0:04:01.600 and data sent A remains. There are concerns that firms 0:04:01.680 --> 0:04:03.080 might take a bit of a pause on when they 0:04:03.080 --> 0:04:06.680 do the installations, but that ultimately does still look like 0:04:06.720 --> 0:04:08.560 a very strong segment of the market. So you really 0:04:08.560 --> 0:04:11.040 have to pick and choose your semi conductor companies to 0:04:11.200 --> 0:04:13.400 hold at this point. I love talking to you, Joanne, 0:04:13.440 --> 0:04:15.600 because you've spent a lot of time looking at the 0:04:15.640 --> 0:04:19.160 semiconductor industry, and you know you're an expert, but you're 0:04:19.160 --> 0:04:21.240 also looking at the markets more broadly. Right I'm looking 0:04:21.240 --> 0:04:24.400 at it and has that one hundred down significantly? Again? 0:04:24.440 --> 0:04:27.000 With four days into the week, we're going we're heading 0:04:27.000 --> 0:04:30.160 towards another tough week in global equity markets with a 0:04:30.200 --> 0:04:32.840 focus on tech. What is top of mind for investors 0:04:32.920 --> 0:04:35.560 right now? Are we still not convinced by the direction 0:04:35.560 --> 0:04:38.040 of travel for the FED that we can concerned about 0:04:38.040 --> 0:04:41.560 global slow down spurred by inflation? What is the story 0:04:41.600 --> 0:04:44.280 for you? You know, there are some real solid risks 0:04:44.320 --> 0:04:46.120 out there for the global economy. I mean, the war 0:04:46.160 --> 0:04:49.360 in Ukraine is is not trivial. There could be bigger 0:04:49.440 --> 0:04:53.359 risks from that. The energy situation is a concern. The 0:04:53.400 --> 0:04:55.520 amount of that central banks around the world have to 0:04:55.640 --> 0:04:58.480 raise raids is a concern and will that lead to recessions? 0:04:58.520 --> 0:05:01.760 Probably so the rodd slowdown that I think folks are 0:05:01.800 --> 0:05:05.279 worried about this really has yet to resolve itself into 0:05:05.360 --> 0:05:07.160 sort of how big, how deep, and how long it 0:05:07.200 --> 0:05:09.800 will be and investors, you know, are concerned about how 0:05:09.880 --> 0:05:12.200 much volatility they can stand. But if you have a 0:05:12.200 --> 0:05:14.200 long enough time arizing, you have to look back at 0:05:14.279 --> 0:05:16.680 history and recognize that the market sells off the most 0:05:17.480 --> 0:05:19.720 tend to tend to do that before recessions begin, and 0:05:19.760 --> 0:05:22.000 they take to storm to recover before we even know 0:05:22.080 --> 0:05:24.560 officially that we've had a recession. And so for a 0:05:24.600 --> 0:05:27.480 long enough term investor, and I mean a year, two years, 0:05:27.520 --> 0:05:30.479 three years, there are some pretty good opportunities out there, 0:05:30.480 --> 0:05:32.560 but one has to be able to stomach the volatility, 0:05:32.560 --> 0:05:35.200 which doesn't look like it's going to go away anytime soon. 0:05:35.400 --> 0:05:38.279 Stomaching the volatility. That should be my daily job title 0:05:38.320 --> 0:05:42.240 Advisers Capital Partner, Jo Anthony. Thank you. Let's get back 0:05:42.240 --> 0:05:44.760 to our top tech story. Meta has announced a hiring 0:05:44.839 --> 0:05:48.640 freeze and warned employees and restructuring the Facebook parents first 0:05:48.720 --> 0:05:52.239 ever head count cut. Let's bring in Bloomberg's Kurt Wagner, 0:05:52.360 --> 0:05:55.320 who broke that story, but also Bloomberg Intelligence senior analyst 0:05:55.560 --> 0:05:57.880 Man deep Seeing to discuss. Kurt, I want to start 0:05:57.920 --> 0:06:00.280 with you set the scene for us. What do we 0:06:00.400 --> 0:06:04.320 learn in the course of our repulity on Thursday? Yeah, 0:06:04.440 --> 0:06:06.760 so this was during a Q and A that happens 0:06:06.760 --> 0:06:10.120 weekly between Mark Zuckerberg and all employees that Beta, and 0:06:10.160 --> 0:06:12.599 he said, uh, you know, hey, I promised you I 0:06:12.640 --> 0:06:15.240 was going to come back with some uh you know, 0:06:15.400 --> 0:06:18.760 ideas about where the budgets headed for three. And the 0:06:18.800 --> 0:06:22.279 big news is there's gonna be hiring Freeze and that 0:06:22.440 --> 0:06:25.400 it sounds like most teams within Meta are going to 0:06:25.440 --> 0:06:28.640 see their budgets reduced next year. And so how exactly 0:06:28.680 --> 0:06:31.440 that's gonna play out within each individual team is going 0:06:31.480 --> 0:06:34.719 to be different. In some cases, you know, when someone 0:06:34.800 --> 0:06:36.880 leaves a team, they're just not going to fill that 0:06:37.000 --> 0:06:39.240 role again. Some people are going to be moving from 0:06:39.279 --> 0:06:41.480 team to team, and then in some cases they're gonna 0:06:41.520 --> 0:06:45.160 be kicking out low performers, right, which is a pretty 0:06:45.240 --> 0:06:47.359 drastic thing that we haven't seen that Facebook in a 0:06:47.400 --> 0:06:50.120 long time or ever. And so this really just feels 0:06:50.160 --> 0:06:52.640 like a moment, right this company that has been growing 0:06:53.320 --> 0:06:56.039 and expanding for eighteen years finally hitting a bit of 0:06:56.240 --> 0:06:58.000 an issue here. I want to show you life some 0:06:58.080 --> 0:07:02.560 of what Mark Zuckerberg told Better employees on Thursday, these 0:07:02.560 --> 0:07:05.880 comments obtained by Bloomberg News. There are a number of 0:07:05.880 --> 0:07:08.039 ways to reduce the size of a group. Some teams 0:07:08.040 --> 0:07:10.680 will transfer people to other teams that are growing. A 0:07:10.680 --> 0:07:14.200 lot of teams will choose not to backfill when somebody departs. 0:07:14.200 --> 0:07:17.960 But ultimately he used the word shrink. Two questions. This 0:07:18.040 --> 0:07:21.200 is a company that historically has not reduced headcount. But 0:07:21.360 --> 0:07:25.120 what is the reality of what we're talking about here? Yeah, 0:07:25.200 --> 0:07:28.400 we didn't get specific numbers. You may recall last week 0:07:28.640 --> 0:07:30.760 the Wall Street Journal had a report that that met 0:07:30.800 --> 0:07:34.000 Him might cut cost by ten percent, but that wasn't 0:07:34.040 --> 0:07:37.720 clear if that was just headcount or other things. But again, 0:07:37.760 --> 0:07:39.640 as you point out, this is not a company that 0:07:39.720 --> 0:07:42.080 has normally or historically ever done this kind of thing. 0:07:42.160 --> 0:07:48.400 So any idea of shrinking that headcount from is a 0:07:48.480 --> 0:07:51.840 huge deal because I think last quarter they added almost 0:07:51.880 --> 0:07:54.080 six thousand employees and in the quarter, right, so the 0:07:54.120 --> 0:07:55.680 idea that they're going in the other direction all of 0:07:55.720 --> 0:07:58.000 a sudden is pretty notable. All right, let me bring 0:07:58.080 --> 0:08:01.560 in Bloomberg Intelligent Senior Tech annaly Man deep saying this 0:08:01.600 --> 0:08:04.160 is a company that face headwinds on the bottom line, 0:08:04.200 --> 0:08:06.320 actually the top line as well. What is your reaction 0:08:06.840 --> 0:08:09.560 to this news. Well, the one thing is we know 0:08:09.920 --> 0:08:12.640 every company in this space is doing that where you 0:08:12.720 --> 0:08:17.040 heard that from Alphabet Snapchat, So it's not a total 0:08:17.160 --> 0:08:20.120 surprise that they announced the hiring freeze. The problem for 0:08:20.240 --> 0:08:23.600 meta is we don't have visibility to win that top 0:08:23.640 --> 0:08:27.400 line growth will resume, not only because advertising is going 0:08:27.400 --> 0:08:30.600 through a cyclical downturn, but also because of the challenges 0:08:30.640 --> 0:08:33.959 that are meta specific, which is the pivot to videos, 0:08:34.160 --> 0:08:37.600 the Apple's I d f A changes, They have the 0:08:37.679 --> 0:08:41.400 largest exposure to direct response ads and look the reality 0:08:41.520 --> 0:08:47.320 labs losses. They are really hurting because Facebook's metas free 0:08:47.320 --> 0:08:50.280 cash flow went from thirty billion to less than ten 0:08:50.320 --> 0:08:53.720 billion this year. That's huge. If you're an investor, you're 0:08:53.760 --> 0:08:56.720 thinking when will that thirty billion free cash flow return? 0:08:56.800 --> 0:08:58.559 And I don't think we have the visibility. So on 0:08:58.679 --> 0:09:02.120 your screen I pulled up meta reality lads. Actually, I 0:09:02.160 --> 0:09:05.400 think I'm right in saying last quarter sales grew four 0:09:05.720 --> 0:09:08.680 and fifty million odd, but the loss was almost three billion. 0:09:09.120 --> 0:09:12.400 This is part of metas pivot to the metaverse. Is 0:09:12.440 --> 0:09:15.000 it just that it's becoming too painful the cost in 0:09:15.040 --> 0:09:17.520 the near term. Yeah, And as an investor you have 0:09:17.640 --> 0:09:20.760 to ask, what are these spending three billion a quarter 0:09:20.880 --> 0:09:23.520 on just they are taking the losses, but remember these 0:09:23.559 --> 0:09:26.960 are recurring and you know, is it going on? Product 0:09:27.240 --> 0:09:30.400 isn't going on just adding employees, which it looks like. 0:09:30.440 --> 0:09:34.640 I mean, they clearly over hired over the last two years. 0:09:34.679 --> 0:09:38.040 But the recurring losses is what is mind boggling here 0:09:38.040 --> 0:09:41.040 and the scale of you know, the losses. And when 0:09:41.040 --> 0:09:43.480 you compare it to an alphabet or a snapchat, which 0:09:43.520 --> 0:09:46.599 are also investing in meta words or a R v R, 0:09:47.200 --> 0:09:49.160 it doesn't show up in their R and D spens. 0:09:49.160 --> 0:09:52.319 So that's where I think Meta really has to show 0:09:52.679 --> 0:09:55.680 two investors what is it that they're spending all this 0:09:55.800 --> 0:10:00.200 money on? What do we know about? What Zuckerberg to 0:10:00.240 --> 0:10:03.520 say for the reasons behind this? Why now? Why are 0:10:03.520 --> 0:10:09.120 they doing this? Well, you pointed to the macroeconomic environment, right, 0:10:09.160 --> 0:10:11.120 and this is something that we've seen a lot of 0:10:11.160 --> 0:10:15.120 these tech companies, especially advertising based tech companies, talk about 0:10:15.120 --> 0:10:17.720 over the last couple of months and couple of quarters, 0:10:18.160 --> 0:10:21.200 which is, you know, there's inflation, there's a war going 0:10:21.240 --> 0:10:24.600 on in Europe. Uh, you see all of these things 0:10:24.679 --> 0:10:27.880 kind of colliding and oftentimes when there is a recession 0:10:27.960 --> 0:10:30.000 or any hint of a recession, the first budget that 0:10:30.040 --> 0:10:32.400 tends to go with the marketing budget, right, and so 0:10:32.840 --> 0:10:36.360 when you're making money from advertising, it can be very 0:10:36.360 --> 0:10:39.439 cyclical with you know, that's why we see a spike 0:10:39.480 --> 0:10:41.960 at the holidays, right, same kind of thing. When there 0:10:41.960 --> 0:10:46.120 are reductions in marketing spend because of other things going on, 0:10:46.440 --> 0:10:48.959 these companies usually feel at first, and so that's been 0:10:48.960 --> 0:10:52.040 a lot of the reasoning for why they're cutting back 0:10:52.040 --> 0:10:55.360 on these costs Mandate. There's also the other strategy, which 0:10:55.400 --> 0:10:57.640 is to go off to video in a crowded field 0:10:57.679 --> 0:11:00.000 with TikTok and YouTube and you and I've been discuss 0:11:00.040 --> 0:11:03.720 saying about how the ad side of that business is tough. 0:11:03.880 --> 0:11:07.960 Explain to me why, Well, not only you've got you know, TikTok, 0:11:08.080 --> 0:11:10.760 there's also Netflix which is trying to get into ads, 0:11:10.800 --> 0:11:13.640 and we know Amazon has been, uh, you know, doing 0:11:13.760 --> 0:11:16.720 very well on the search side. So clearly this field 0:11:16.920 --> 0:11:20.000 is getting crowded and metals problem is not only are 0:11:20.040 --> 0:11:24.559 they losing engagement. Remember the time spent on beta, Instagram 0:11:24.600 --> 0:11:28.160 and Facebook properties is declining, even though their daily active 0:11:28.240 --> 0:11:31.040 user growth is holding up, but their time spantas declining. 0:11:31.080 --> 0:11:34.000 So the impressions growth is going down and ad pricing 0:11:34.080 --> 0:11:36.480 is going down. So that's a double valmy. And that's 0:11:36.559 --> 0:11:39.760 why pivoting to videos is just the wrong time, because 0:11:39.800 --> 0:11:43.400 they are behind TikTok and all these other platforms and 0:11:43.400 --> 0:11:45.520 and it's just gonna take more time. They don't have 0:11:45.559 --> 0:11:48.320 the creator base that a TikTok has, so they have 0:11:48.440 --> 0:11:50.760 to bring the creators. Guess what. There has to be 0:11:50.800 --> 0:11:54.000 a revenue sharing model that's gonna eat into the gross margin. 0:11:54.160 --> 0:11:57.240 So a lot of problems in terms of making that pivot. 0:11:57.320 --> 0:12:00.400 Now they should have done that before pivoting to ours. 0:12:00.520 --> 0:12:04.200 The battle for eyeballs continues. Bloomberg's Kurt Wagner and of 0:12:04.200 --> 0:12:07.560 course Bloomberg Intelligence senior tech analyst Man Deep sing thank 0:12:07.600 --> 0:12:10.720 you to you both. Coming up. An Apple executive is 0:12:10.720 --> 0:12:15.199 ousted after a viral TikTok details next, This is Bloomberg. 0:12:24.520 --> 0:12:27.160 More bad news for Apple this week. Shares plunged by 0:12:27.200 --> 0:12:30.960 as much as six percent Thursday, wiping twenty billion dollars 0:12:30.960 --> 0:12:34.240 from its market value. Now Bloomberg has learned one of 0:12:34.240 --> 0:12:38.000 the company's senior executives is leaving after a TikTok emerged 0:12:38.000 --> 0:12:41.520 of him making an off color joke. Bloomberg's Mark German 0:12:41.920 --> 0:12:44.400 is here to explain, Mark, what did you learn in 0:12:44.440 --> 0:12:48.000 the course of your reporting. On Thursday today, we reported 0:12:48.040 --> 0:12:51.600 that Tony Blovin's, Apple's longtime vice president of procurement, been 0:12:51.640 --> 0:12:53.839 at the company for about twenty two years or so. 0:12:54.440 --> 0:12:56.880 He is leaving the company after he appeared in a 0:12:57.080 --> 0:13:00.800 very viral video that aired earlier this month on Instagram 0:13:00.840 --> 0:13:03.320 in TikTok uh and in the video he made some 0:13:03.360 --> 0:13:07.200 crude comments. This is a TikTok and Instagram account by 0:13:07.240 --> 0:13:09.680 a creator named Daniel Mack. He goes up to people 0:13:09.720 --> 0:13:13.160 at car shows in Beverly Hills elsewhere in the world, 0:13:13.520 --> 0:13:15.439 goes up to people and asks them, if they're driving 0:13:15.440 --> 0:13:17.920 a fairly expensive car, what they do for a living. 0:13:18.320 --> 0:13:21.320 And Blevin's response was clearly not in line with what 0:13:21.400 --> 0:13:24.719 Apple felt was acceptable, leading to his departure now from 0:13:24.720 --> 0:13:27.840 the company. As he said, Tony Blevins as a senior 0:13:27.840 --> 0:13:32.120 executive essentially head of procurement for Apple. That's a massive role. 0:13:32.840 --> 0:13:35.560 What projects has he been involved in? What deals has 0:13:35.600 --> 0:13:39.120 he done for the company? Yeah? Absolutely, Blevin's has been 0:13:39.160 --> 0:13:41.520 headed procurement for Apple and what that means he does 0:13:41.559 --> 0:13:44.920 all the supplier agreements and partner agreements for many of 0:13:44.920 --> 0:13:48.199 Apple's products, particularly iPhone, the iPad, and some of their 0:13:48.200 --> 0:13:50.719 other mobile devices. So I'll give you an example of 0:13:50.840 --> 0:13:53.679 the Global Star deal that Apple did earlier this month 0:13:53.800 --> 0:13:55.679 or announced earlier this month as part of the new 0:13:55.720 --> 0:13:58.960 Satellite Emergency s OS feature for the iPhone fourteen and 0:13:59.000 --> 0:14:03.160 fourteen pro that was overseen by Blevins. Blevins did the 0:14:03.200 --> 0:14:08.760 complex negotiations related to Apple sourcing five g qualcom modems 0:14:08.760 --> 0:14:12.480 for the latest iPhone units. He also did deals with Intel, 0:14:12.880 --> 0:14:17.800 uh Samsung, Display Imagination Technologies, any of the big suppliers 0:14:17.800 --> 0:14:20.200 that you've heard of. It was his responsibility to get 0:14:20.200 --> 0:14:23.480 those components ahead of the competition and at better prices 0:14:23.560 --> 0:14:26.920 than the competition, leading to Apple's strong margins. Some people 0:14:26.920 --> 0:14:30.320 in the company say he's even irreplaceable given how important 0:14:30.320 --> 0:14:33.520 he was to Apple's bottom line and their product roadmap. 0:14:33.920 --> 0:14:36.240 Mark what do we know about how Apple dealt with 0:14:36.400 --> 0:14:40.560 this issue internally and what has Apple's response been to 0:14:40.680 --> 0:14:44.400 our reporting? So the video was first published on TikTok 0:14:44.520 --> 0:14:48.080 on September five and on Instagram on September six. After 0:14:48.120 --> 0:14:50.560 the video became public, which, by the way, it has 0:14:50.600 --> 0:14:52.960 well over a million views on TikTok and over forty 0:14:53.360 --> 0:14:56.560 comments on Instagram, so I'd quantified it as fairly viral. 0:14:57.160 --> 0:15:01.000 People within the Apple Operations and Procurement organization reported the 0:15:01.080 --> 0:15:04.520 video to Apple's human resources department, which then enacted an 0:15:04.560 --> 0:15:09.880 investigation into the situation. We're told that this month Jeff Williams, 0:15:09.880 --> 0:15:13.880 Apple's CEO, chief operating officer, made the decision that Blevins 0:15:13.920 --> 0:15:17.160 would be leaving the company. And today I spoke to Blevins. 0:15:17.240 --> 0:15:20.160 He issued a statement which is in our story. It's 0:15:20.200 --> 0:15:22.080 a formative an apology that can you can read in 0:15:22.120 --> 0:15:24.480 the article itself. And I spoke to Apple as well, 0:15:24.680 --> 0:15:27.880 and Apple confirmed that Blevins would be leaving the iPhone maker. 0:15:28.200 --> 0:15:30.600 All right, those are the latest details on that report. 0:15:30.600 --> 0:15:41.960 Bloomberg's Mark German, thank you very much. Amazon is boosting 0:15:42.000 --> 0:15:44.960 pay for hourly workers in the US. The online retailing 0:15:45.000 --> 0:15:48.120 gilet says the move will raised the average starting wage 0:15:48.160 --> 0:15:52.440 for most frontline employees in warehousing and transportation to nineteen 0:15:52.440 --> 0:15:55.480 dollars an hour. Bloomberg has learned that Amazon will close 0:15:55.560 --> 0:15:58.640 all but one of its US call centers and shift 0:15:58.760 --> 0:16:02.000 hundreds of office employer ease to remote work. That's a 0:16:02.000 --> 0:16:05.600 move that would help save money on real estate, but 0:16:05.640 --> 0:16:08.720 there are headwinds for Amazon's m and A ambition. Senator 0:16:08.760 --> 0:16:12.280 Elizabeth Warren of Massachusetts says she and other lawmakers have 0:16:12.440 --> 0:16:16.520 asked the FTC to reject Amazon's proposal to buy i 0:16:16.800 --> 0:16:19.880 Robot that according to a report from Axios, last week, 0:16:19.920 --> 0:16:23.000 the FTC asked Amazon and I Robot to send additional 0:16:23.040 --> 0:16:27.440 information about the proposal. On Wednesday, Amazon senior vice president 0:16:27.440 --> 0:16:30.680 of Devices told me he feels confident the deal will 0:16:30.680 --> 0:16:33.600 go through, and soft Bank Group has begun laying off 0:16:33.600 --> 0:16:37.560 employees at its loss making Vision Fund. Sources say that 0:16:37.680 --> 0:16:40.560 soft Bank expects to cut at least thirty of its staff. 0:16:40.840 --> 0:16:44.640 The London based Vision Fund unit had about five hundred employees. 0:16:44.720 --> 0:16:48.320 It recently posted a twenty three billion dollar loss, with 0:16:48.400 --> 0:16:53.800 most of that coming from a plunge evaluations of portfolio companies. Now, 0:16:53.840 --> 0:16:57.800 Porsche is confident despite a lackluster I p O in Germany. 0:16:57.800 --> 0:17:01.440 On Thursday, Porsche just eked out again during its trading debut, 0:17:01.440 --> 0:17:03.840 with the I p O valuing the company at around 0:17:03.880 --> 0:17:08.119 seventy three billion dollars. It's CFO told Bloomberg the company 0:17:08.200 --> 0:17:10.679 can meet its revenue target of as much as forty 0:17:10.680 --> 0:17:15.040 billion for this year despite the difficult macro economic situation. 0:17:15.359 --> 0:17:20.960 Here's some of that conversation. We have successfully mastered one 0:17:21.000 --> 0:17:26.160 of the biggest largest ip yours in Europe ever. And yeah, 0:17:26.359 --> 0:17:29.879 so far we are very proud and yeah, and I 0:17:29.920 --> 0:17:33.440 would like to say thank you to our entire team. 0:17:34.080 --> 0:17:39.760 Horsberg has ensured said b Knstantia today and I cast 0:17:39.800 --> 0:17:44.719 my mind's eye back to four years ago and you flagged. 0:17:44.760 --> 0:17:46.640 You came out and said maybe we should I po 0:17:46.800 --> 0:17:50.560 Porsche with a market cap of around eighty billion euros. 0:17:50.560 --> 0:17:54.040 There was a bit pushback internally externally when you came 0:17:54.040 --> 0:17:57.159 out with that. Do you feel vindicated? Yeah? Absolutely. It 0:17:57.400 --> 0:18:02.919 was a tough fired over four years now, but we succeeded. 0:18:03.400 --> 0:18:07.000 Now we can't stand here. We are very happy. Yeah, 0:18:07.119 --> 0:18:11.160 and we see further potential for the future. Is our 0:18:11.280 --> 0:18:15.040 strong brand? How are you going to cooperate between the 0:18:15.080 --> 0:18:18.359 parent company Volkswagen and Porsche. You have a little bit 0:18:18.359 --> 0:18:21.359 more independence now, but we know historically there's been tension 0:18:21.400 --> 0:18:24.360 between the brands and the portfolio. How you can incorporate 0:18:24.400 --> 0:18:26.600 and make sure there are synergies that work for you 0:18:26.640 --> 0:18:31.600 at Porsche. Yeah, we have negotiated an Industrial Corporation Contract 0:18:32.240 --> 0:18:38.720 b c W and has clearly regulated that Posher has 0:18:38.800 --> 0:18:43.720 autonomy in future. The Posher board will decide in future 0:18:44.240 --> 0:18:49.120 completely independent from b W. And yeah, that's a great 0:18:49.160 --> 0:18:54.320 situation for us. We want to unlook Portia's full potential, 0:18:54.840 --> 0:18:58.760 of course, but we have also the possibility in future 0:18:59.119 --> 0:19:02.919 to work together vis W group brands. We are beneficial 0:19:03.000 --> 0:19:07.720 for Porsche. That's that's the case when it comes to 0:19:07.840 --> 0:19:12.200 sharing technologies like the tai Kan used also for the 0:19:12.280 --> 0:19:19.000 Audi Eton GT, fooling emissions, bundling, purchasing volumes are to 0:19:19.240 --> 0:19:25.080 using production capacities like Ccaen and Bratisla. Okay. And talking 0:19:25.080 --> 0:19:27.520 about production, so you have the factories in Germany, you're 0:19:27.520 --> 0:19:31.200 producing Germany, you're producing in Slovakia. Where do you build 0:19:31.200 --> 0:19:35.440 out the factories of the future for Porsche. Yeah, hopefully 0:19:35.600 --> 0:19:39.640 in Germany and in Slovakia. There's no as a plan 0:19:41.600 --> 0:19:45.280 that was Porsche CFO Lutes Meshka. And what's interesting, I mean, 0:19:45.400 --> 0:19:50.000 last year the Taykan electric Porsche out sold the traditional 0:19:50.160 --> 0:19:53.240 nine eleven. But what's also interesting out the news on Thursday, 0:19:53.280 --> 0:19:57.160 Porsche promising you purists out there that the nine eleven 0:19:57.480 --> 0:20:00.920 will remain a gasoline vehicle. The nine leven will still 0:20:00.960 --> 0:20:04.360 be running on gasoline for years to come. An interesting one. 0:20:04.400 --> 0:20:13.640 What do you make of that? Tweet me? Welcome back 0:20:13.640 --> 0:20:17.320 to Bloomberg Technology. IMD Lovelow in New York, India plans 0:20:17.320 --> 0:20:20.680 to boost the financial incentives it offers makers of tablets 0:20:20.680 --> 0:20:24.040 and laptops to manufacture them in the country. It's part 0:20:24.080 --> 0:20:27.840 of Norndra Moody administration's effort to wou companies like Dell 0:20:27.920 --> 0:20:30.760 and Apple, and a challenge to China, has the main 0:20:30.840 --> 0:20:34.200 tech production base. The plan is to offer as much 0:20:34.240 --> 0:20:37.680 as five and fifty million U S dollars per manufacturer, 0:20:37.840 --> 0:20:41.639 According to a document seen by Bloomberg News, Apple recently 0:20:41.680 --> 0:20:45.840 started making the new iPhone fourteen in India earlier than expected. 0:20:46.160 --> 0:20:50.359 Following a smooth production rollout and sticking with Apple, the 0:20:50.359 --> 0:20:53.959 iPhone makers shares dropped again Thursday. Apple was hit by 0:20:53.960 --> 0:20:56.960 a rare downgrade with Bank of America seeing the tech 0:20:57.000 --> 0:21:00.240 giants dominance at risk. Here with the details bloom Bugs 0:21:00.240 --> 0:21:03.800 Bailey Lipshelves Bailey. Yeah, and we saw Apple fall almost 0:21:03.840 --> 0:21:06.960 five percent after that downgrade from Bank of America, wiping 0:21:06.960 --> 0:21:09.439 out close to a hundred and twenty billion dollars in 0:21:09.480 --> 0:21:13.480 market value, really sounding the alarm over concerns surrounding a 0:21:13.520 --> 0:21:16.280 weaker consumer demand over the next year, as well as 0:21:16.320 --> 0:21:18.920 concerns really around the fact that the US dollar is 0:21:18.960 --> 0:21:21.760 trading so strong. Apple is a company that generates more 0:21:21.800 --> 0:21:25.680 than half of its UH sales from overseas. That really 0:21:25.720 --> 0:21:28.520 hitting shares today. But there was a bank that came 0:21:28.520 --> 0:21:31.760 out kind of disagreeing with that downgrade. That was Rosenblack 0:21:31.760 --> 0:21:34.879 at that company, or that firm upgrading shares on Apple 0:21:35.160 --> 0:21:38.640 or it's rating on Apple to buy from neutral, saying 0:21:38.640 --> 0:21:43.160 that they're seeing strength and demand from iPhone fourteen purchases, 0:21:43.240 --> 0:21:47.119 primarily the I four, iPhone fourteen pro and that ultra watch, 0:21:47.280 --> 0:21:50.560 so really kind of seeing value over the near immediate 0:21:50.720 --> 0:21:52.919 medium term and then looking at it though from a 0:21:53.000 --> 0:21:55.639 broader standpoint. Over the last week, we've seen Apple shares 0:21:55.840 --> 0:21:59.080 really falling under market pressure that coming after that Bloom 0:21:59.440 --> 0:22:01.919 report that the company was pulling back on plans to 0:22:01.920 --> 0:22:05.560 potentially ramp up production of that iPhone four team. But 0:22:05.680 --> 0:22:08.120 Wall Street really has been disagreeing in the past few 0:22:08.200 --> 0:22:12.320 days about whether consumers are shifting towards buying iPhone fourteen 0:22:12.400 --> 0:22:15.280 pros and the pro Max more high end models as 0:22:15.280 --> 0:22:18.440 opposed to that low basic entry level at the iPhone fourteen. 0:22:18.760 --> 0:22:21.919 All right, thanks to Bloomberg's Bailey Lipscholtz, Apple was just 0:22:22.000 --> 0:22:24.720 one drag on equity markets Thursdays then has that one 0:22:24.760 --> 0:22:28.720 hundred fell almost three percent. Global investors are bracing for 0:22:28.800 --> 0:22:32.959