Speaker 1: From Mahard where Innovation, Money and power Collie in Silicon
Speaker 1: Vallet Nbon.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Lovelove.
Speaker 3: I'm scarlettfu in for Caroline Hide at Bloomberg's world headquarters
Speaker 3: in New York, and.
Speaker 4: I'm Alex Franka in for Ed Ludlow in San Francisco.
Speaker 4: This is Bloomberg Technology coming up.
Speaker 3: In video's blowout forecast sparks a two hundred and sixty
Speaker 3: billion dollar AI rally. We'll break down the results in
Speaker 3: how to trade the red hot technology.
Speaker 5: And as a catastrophic US default. Looms will speak to
Speaker 5: one tech industry veteran who joined CEOs in signing an
Speaker 5: open letter to the President and Congress over their extreme
Speaker 5: concerns on the matter.
Speaker 3: Plus a one point eight billion dollar deal in a
Speaker 3: three D printing space. We'll discuss why Stratusists is acquiring
Speaker 3: desk Metal.
Speaker 4: With its CEO. All that and a lot.
Speaker 3: More coming up, But first we want to get your
Speaker 3: check on the markets. Here at midday on this Thursday,
Speaker 3: and you have the S and P five hundred moving
Speaker 3: higher by half of one percent, all thanks to technology.
Speaker 3: Look at the Philadelphia Semiconductor Index hired by almost six
Speaker 3: percent thanks to video is better than expected sales forecast.
Speaker 3: Alex will get into that a little bit later, but
Speaker 3: it's not as if all chip makers are rising. You
Speaker 3: actually have weakness in Intel and analog devices as well.
Speaker 3: There's a lot of anks to over the debt ceiling
Speaker 3: and how little progress seems to be there seems to
Speaker 3: be right now as we get closer to June.
Speaker 4: First, you can see the yield on the two.
Speaker 3: You're moving up by seven basis points to four point
Speaker 3: four or five percent. This is actually the tenth straight
Speaker 3: day that yields have been moving up, reflecting a persistent
Speaker 3: decline in demand for that security. Fitch actually put the
Speaker 3: US on credit watch for a possible downgrade, even as
Speaker 3: it says it does expect some kind of deal at
Speaker 3: the last minute. Markets are also pricing in increase odds
Speaker 3: that the Federal Reserve will possibly raise interest rates at
Speaker 3: one of its next two meetings. Data is showing inflation
Speaker 3: remains fairly sticky, and in fact, the GDP report showed
Speaker 3: a faster rate of growth than what had been previously estimated.
Speaker 3: So with the US dollar strength thing, let's change up
Speaker 3: the boards here. What you'll see is that commodities are lower,
Speaker 3: especially those price in US dollars like New York crud
Speaker 3: WTI off by four percent at the moment, snapping a
Speaker 3: three day advance. Saudi Arabia this week saying that people
Speaker 3: shorting the oil market should watch out, although that was
Speaker 3: follow up by Russia saying that it's unlikely OPEK and
Speaker 3: its partners, including Russia, will be cutting production in the
Speaker 3: near term. Gold future is also down by nine tens
Speaker 3: of one percent. I bring this up only because I
Speaker 3: was reading somewhere Alex that one analyst said institutional messters,
Speaker 3: when they are looking for someplace to hide out, they
Speaker 3: hide out in gold. When individual mesters are looking for
Speaker 3: somewhere to hide out, they go to bitcoin. Right now,
Speaker 3: neither of these safe havens is catching a bid, but
Speaker 3: it's an interesting explanation of gold versus coin, Alex.
Speaker 5: I'll get to some of those safe havens Scarlet, but
Speaker 5: first I want to bring you to some of the red.
Speaker 5: On the day Snowflake is taking its biggest plunge in
Speaker 5: over a year, it reported disappointing sales outlook for the
Speaker 5: current quarter. That software company is known for charging customers
Speaker 5: on a pay as you go model, but it told
Speaker 5: investors that the uncertain economic conditions have clients slowing down
Speaker 5: on using their products.
Speaker 4: Now let's move into some of that grain.
Speaker 5: Dish is surging the most in six months on a
Speaker 5: Wall Street Journal report that it's in talks to sell
Speaker 5: its new mobile phone service through Amazon.
Speaker 6: Now.
Speaker 5: Dish already uses Amazon's cloud to run core elements of
Speaker 5: the FIG network it's developing, but this move would give
Speaker 5: the company access to Amazon's millions of customers. Now into
Speaker 5: some of our bigger movers of the day, Microsoft is
Speaker 5: trading at a sixteen month high. Investors are really on
Speaker 5: the hunt for the next AI trade.
Speaker 4: We've been talking about.
Speaker 5: Save Haven's and this company has been out front on
Speaker 5: that AI trade. It's not new news that Microsoft has
Speaker 5: been out front in AI. It's the biggest stakeholder in
Speaker 5: open AI and brand and is already bringing artificial intelligence
Speaker 5: to its cloud offerings and its software. What is giving
Speaker 5: it a little bit of a lift today is perhaps
Speaker 5: a bit of the halo effect from the top stock
Speaker 5: I'm watching today, which I will take us to. Now,
Speaker 5: let's go to Nvidia. I told you everyone's looking for
Speaker 5: the next AI trade. This is why in Video's up
Speaker 5: a whopping twenty seven percent at record high levels and
Speaker 5: flirting with that big sticker one trillion dollar valuation. The
Speaker 5: chip maker reported a revenue forecast that surprised even the
Speaker 5: most bullish of analysts on sales of its processors used
Speaker 5: in you guessed it AI technology, It sells to customers
Speaker 5: like Microsoft, like Alphabet and others. Analysts at Susquehanna even
Speaker 5: called this the greatest beat of all time of any.
Speaker 4: Earnings report they've seen.
Speaker 5: This stock also could be benefiting from that safe haven
Speaker 5: effect we've seen in tech stocks lately. We'll dig in
Speaker 5: to that shortly, but first I want to get more
Speaker 5: on in Vidia and that AI demand that's been booming.
Speaker 5: So let's bring in Bloomberg's Ian King and big report
Speaker 5: out of in Vidia yesterday. Lots of excitement on the forecast.
Speaker 5: Dig into the numbers here for.
Speaker 7: Us, Yeah, I mean the embarrassed Wall Street. The prediction
Speaker 7: of eleven billion, which would be their biggest quarter ever
Speaker 7: for the current period, fifty three percent higher than where
Speaker 7: the average expectation was, and the numbers on the quarter
Speaker 7: were similarly a lot stronger. Even the poultry long forgotten
Speaker 7: nobody cares about PC businesses looking better for them as well.
Speaker 7: It really just you know, wildly surprised everybody on the
Speaker 7: upside and gave investors exactly what they were looking for,
Speaker 7: which is like, show me the company that's actually making
Speaker 7: money out of this AI thing.
Speaker 3: Yeah, it seems like it's hitting on all cylinders. Ian
Speaker 3: how is it when you zoom out a little bit here,
Speaker 3: that in video always seems to be on the front
Speaker 3: lines of whatever the new hot thing in tech is.
Speaker 3: I remember super high in video games in videos there,
Speaker 3: Bitcoin mining in videos there, and now AI in videos there.
Speaker 7: Yeah, I mean it's you know, to hear it on
Speaker 7: a fundamental level from their CEO, we're talking about what
Speaker 7: he calls a shift in computing to accelerated computing. That's
Speaker 7: the idea that instead of using a type of chip
Speaker 7: that kind of does everything quite well, which would be
Speaker 7: an Intel CPU, you're using a chip for a very
Speaker 7: specific purpose that's really good at doing things in a
Speaker 7: very simple things relatively, but in a very parallelized way.
Speaker 7: So it's going to give a huge rush to say
Speaker 7: training AI software or actually taking that software and doing
Speaker 7: the implementation of it, recognizing you know, cats in videos
Speaker 7: or what you're saying to your Alexa speaker and making
Speaker 7: that much more efficient and much better now.
Speaker 5: And I don't want to damper on the day for
Speaker 5: in Video they're having a big one.
Speaker 4: But this does make me wonder when.
Speaker 5: You think about the hyperscalers that it sells to. When
Speaker 5: you think about folks like Meta, a lot of those
Speaker 5: companies are known for wanting to vertically integrate their entire
Speaker 5: infrastructure stack. How long are invidious processors kind of the
Speaker 5: bell of the ball. At what point do you see
Speaker 5: some of the customers actually pushing into creating their own silicon.
Speaker 7: I mean you nailed it. I mean you wrote about
Speaker 7: it recently. This is absolutely the question that's hanging over them,
Speaker 7: and in Video has two answers to that. One is
Speaker 7: we're going to run faster than they can because we've
Speaker 7: got a head start on this. We're good at it.
Speaker 7: And the second answer to this is if AI is
Speaker 7: only the preserve of Microsoft, of Meta, of Amazon Notable US,
Speaker 7: then that's not good enough. It needs to be a
Speaker 7: type of technology that every company that doesn't have these
Speaker 7: these abilities can just walk into. So what they've been
Speaker 7: doing is making devices, is making cloud services, and their
Speaker 7: own software that would help pharmaceutical companies, robots companies, automotive
Speaker 7: companies get into this. So they're kind of trying to
Speaker 7: hedge their bets there and stay ahead of the game.
Speaker 4: Yeah, they've done a great job as seeing ahead of
Speaker 4: the game.
Speaker 3: You know, we've been talking about how Wall Street strategists
Speaker 3: like Michael Hartnet of Bank of America have talked about
Speaker 3: how there is this mini bubble in AI and a
Speaker 3: bubble technology. Is there any acknowledgment of this in San Francisco,
Speaker 3: ground zero of all this technology that perhaps things are
Speaker 3: getting a bit frothy.
Speaker 7: Well, if you look at the the inbox of any journalist,
Speaker 7: it's going to be full of pitches with the words
Speaker 7: AI in it. So what does that tell you? I mean,
Speaker 7: we've been through this before, obviously, but no, I think,
Speaker 7: you know, in Vidia is a real good case in point,
Speaker 7: and the way the market has reacted is also a
Speaker 7: good case in point. Not every chip stock is up today.
Speaker 7: Intel is down right, and some of the others aren't
Speaker 7: sling out. So I think there's a little bit more sobriety,
Speaker 7: at least in my sector. In terms of other areas,
Speaker 7: who knows, there's a lot of talk.
Speaker 3: Yeah, well in videos delivering and it is profitable compared
Speaker 3: to some of the companies in past moments of excesses.
Speaker 4: Ian Hiking. Thank you so much.
Speaker 3: Ian, with his decades of experience covering semiconductors.
Speaker 4: In Asia and the US.
Speaker 3: Let's get more on the markets and bring in Mona Mahajan.
Speaker 3: She is Edward Jones's senior investment strategist. Mona, I know
Speaker 3: that you were listening to us talk to Ian just now.
Speaker 3: I'm curious with the S and P five hundred six
Speaker 3: tens of one percent, clearly powered by Nvidia in these
Speaker 3: big tech names, but the now losing ground by four
Speaker 3: tenths of one percent because it doesn't have that AI exposure.
Speaker 3: Is this overall a strong stock market or a fragile
Speaker 3: stock market given how narrow the winners are.
Speaker 4: Yeah, it's a great question.
Speaker 1: Stcarlett, and look this year the SMP broadly is up
Speaker 1: about seven percent plus, but it has been very narrow leadership.
Speaker 1: In fact, only three sectors are outperforming the broader market.
Speaker 1: Those are of course, technology, comm services, and consumer discretionary.
Speaker 1: So those growth parts of the market, quality growth parts
Speaker 1: of the market. Some of those sectors are up twenty
Speaker 1: percent plus, so back in bull market territory. And meanwhile,
Speaker 1: the cyclical and more defensive parts of the market are lagging.
Speaker 1: So you know, as long term investors, we would certainly
Speaker 1: like to see a broader participation in a market rally
Speaker 1: that to us is a more healthy sign that the
Speaker 1: economy of the underlying fundamentals and the market broadly has.
Speaker 4: More room to run.
Speaker 1: Now, this narrow leadership not only driven by a few
Speaker 1: sectors and a few names. We're also seeing valuation expansion
Speaker 1: creep back into the marketplace as well.
Speaker 4: Keep in mind earnings.
Speaker 1: Although earnings growth this past quarter did exceed expectations, we're
Speaker 1: still looking at negative earnings growth and really now three
Speaker 1: back to back negative earnings quarters, So valuation is expanding.
Speaker 4: Breath has been narrow.
Speaker 1: But what we will say broadly is that some of
Speaker 1: the reasons that investors have gotten back into the market
Speaker 1: they do have this alternative sitting in cash and cash
Speaker 1: like instruments, is because some of these technology players have
Speaker 1: provided a compelling reason to get involved.
Speaker 3: Let me broaden out our conversation a little bit here,
Speaker 3: because obviously the excitement over Nvidia and any company that
Speaker 3: has ties to AI is papering over some weak spots
Speaker 3: in the overall market and the economy. Fitch, for instance,
Speaker 3: put US on watch for a possible downgrade of its
Speaker 3: credit rating. Does it matter that it's Fitch versus SMP
Speaker 3: or Moody's, or is any one of the three big
Speaker 3: ratings companies downgrading the US potentially enough for investors to
Speaker 3: have to sell. I'm just trying to get ahead of
Speaker 3: what we could see if the worst happens.
Speaker 1: Yeah, you know, it's an interesting question. And look, I
Speaker 1: think our base case continues to be that the US
Speaker 1: does not default on its debt, and in fact, both
Speaker 1: sides of Congress come together in a negotiated resolution.
Speaker 4: We've seen some historic precedent for that.
Speaker 1: In fact, seventy eight times has Congress come together to
Speaker 1: raise the debt ceiling since nineteen sixty. Twenty of those
Speaker 1: times have been since twenty eleven, and six of those
Speaker 1: have been in using extraordinary measures. So there is precedent
Speaker 1: for this, and we do think that will be the
Speaker 1: most likely path forward. But in the meanwhile, we will
Speaker 1: certainly get consternation, and the Fitch warning is certainly one
Speaker 1: signal of that. We would say, if you know, in
Speaker 1: that tail risk scenario that the US does default, any
Speaker 1: of the rating agency downgrades will be meaningful, and not
Speaker 1: only that we will have broader impacts and equity bond markets,
Speaker 1: but also things like payments to you know, key areas
Speaker 1: of the economy, social, secure, medicare, defense, etc. So there
Speaker 1: are real meaningful impacts of not only the downgrade but
Speaker 1: the default itself.
Speaker 4: But we're still hopeful.
Speaker 1: That, you know, as we approach the X state, really
Speaker 1: both sides can come together, and both sides will probably
Speaker 1: have to concede to some extent, but we'll get that
Speaker 1: negotiated resolution.
Speaker 5: Mana, if we do have that, as you say, kind
Speaker 5: of outside case of default. Even if we don't, some
Speaker 5: economists are saying that this whole back and forth could
Speaker 5: push us into something of a mild recession. If that
Speaker 5: does happen, here, where do you rotate your investments?
Speaker 4: Is it back to cash? What are you looking at?
Speaker 5: If that is kind of the scenario we see over
Speaker 5: the next twelve eighteen months.
Speaker 1: Yeah, you know, look, I think certainly the mild recession
Speaker 1: scenario is one that is now somewhat baked into markets.
Speaker 1: In fact, if you look at the Bloomberg Consensus estimate's
Speaker 1: Q three and Q four two back to back quarters.
Speaker 1: They are looking for negative or calling for negative GDP.
Speaker 1: It's minor negative point five percent, but still sub zero
Speaker 1: GDP for two quarters, and that is now probably the
Speaker 1: most well advertised mild recession on the horizon.
Speaker 4: If we do get more.
Speaker 1: Meaningful volatility around the debt ceiling, that could create just
Speaker 1: feedback loops around the consumer pulls back. There's hesitation to invest,
Speaker 1: even in safe haven assets, and that does have an
Speaker 1: impact and a ripple effect through equity and bond markets.
Speaker 1: We'd say, in that scenario, you certainly want to be
Speaker 1: more defensive, and in that scenario defensive probably still means
Speaker 1: areas of the market like staples, health care utilities, but
Speaker 1: also still overweight some of those cash and cash like instruments.
Speaker 1: So that kind of bar belle between the equity and
Speaker 1: the bond market on the defense side. Now, as we do,
Speaker 1: you know, if that does not occur, and as we
Speaker 1: do get through a resolution and the economy goes through
Speaker 1: a mild recession and looks towards recovery, that's when really
Speaker 1: we think about a more broadening participation. As we talked
Speaker 1: about earlier, that recovery playbook should include leadership from areas
Speaker 1: like small cap stocks like international em equities, and also
Speaker 1: of course longer duration bonds and cyclical parts of the market.
Speaker 4: So not just tech leading the way.
Speaker 1: We do think as we look towards the back half
Speaker 1: of the year and towards potential recovery, we'll have a
Speaker 1: more sustainable, broader leadership in the market as well.
Speaker 5: I have to ask one last one on tech. We
Speaker 5: did see during the pandemic era era, the tech, particularly
Speaker 5: big tech was really gaining, particularly on digital advertising strength
Speaker 5: e commerce.
Speaker 4: But when that kind of time.
Speaker 5: Period ended, investors turned back to the fundamentals. Cost structure
Speaker 5: was in play, fundamentals of these companies were in play.
Speaker 5: Is there a risk here for these big tech names
Speaker 5: that are really getting a lot of love these days
Speaker 5: from the equity markets that if we have a quarter
Speaker 5: of maybe shakeier fundamentals, that you could see a big
Speaker 5: sell off in that sector in particular.
Speaker 1: Yeah, you know, look, there's certainly a case to be made,
Speaker 1: an a credible case that we're getting into overbought territories
Speaker 1: and a pullback and period of consolidation we think probably
Speaker 1: would be normal healthy in some cases, given the excess
Speaker 1: moves that we've seen. That being said, you know, in
Speaker 1: an era of low growth, the low economic growth, investors
Speaker 1: do tend to gravitate towards higher growth parts of the market,
Speaker 1: especially those with defenseable business models, strong free cash flow,
Speaker 1: and those that are returning value to shareholders through buybacks.
Speaker 1: So there is you know, perhaps a little bit of
Speaker 1: consolidation volatility ahead, but the long term picture we think
Speaker 1: looks a little bit more balanced and still healthy for technology.
Speaker 5: Mona Mahazan, thank you for taking us through today and
Speaker 5: in the future.
Speaker 4: That's Mona Mahazan and Edward Jones.
Speaker 5: I appreciate you joining us all right.
Speaker 3: In the three D printing world, Stratasists agree to acquire
Speaker 3: Desktop Metal. It is an all stock deal that'll create
Speaker 3: a leading company in the industry at about one point
Speaker 3: eight billion dollars. Joining us now is yav zeif STRATUSUS CEO,
Speaker 3: Yov thank you so much for joining us. Your company
Speaker 3: recently rejected a takeover offer from rival. I know Dimension,
Speaker 3: yet here you are getting ready to buy just top Metal.
Speaker 3: Why does this particular combination make sense.
Speaker 6: Because it will reshape the industry, the three D printing
Speaker 6: industry or auditive manufacturing for years is failing to deliver
Speaker 6: what manufacturing really needs. But with the combination, we'll create
Speaker 6: the scale to deliver.
Speaker 5: And with that scale, are there certain clients or certain
Speaker 5: slices of industry that you think you can really sell
Speaker 5: into now that you're pulling in this additional functionality with
Speaker 5: this acquisition.
Speaker 6: Definitely, we are leading in the aerospace and automotive markets,
Speaker 6: and we're also leading in dental and medical, but we
Speaker 6: didn't have the metal paths we are focusing on polymer
Speaker 6: Now together there we are setting to the same customer
Speaker 6: through the same channels, a much bigger portfolio, broader portfolio,
Speaker 6: and will be very profitable to leverage our scale.
Speaker 5: Yeah, if you say profitability, talk to us day one.
Speaker 5: What is the financial impact on Stratasis from bringing this
Speaker 5: company in the fold? Are we talking in immediate revenue boost?
Speaker 5: Is there a margin accretion? Kind of talk us through
Speaker 5: the financial side of this acquisition.
Speaker 8: Great question. We are the only profitable strategies.
Speaker 6: Is the only profitable business in the three D printing arena?
Speaker 6: Desktop Metal announced that there will be profitable by the
Speaker 6: end of the year. When we combine us together, we'll
Speaker 6: be the first above one billion dollar company in this industry,
Speaker 6: this is huge. In twenty twenty five will sell one
Speaker 6: point one billion with even the imagin of ten to
Speaker 6: twelve percent. This is something that does not exist today
Speaker 6: in editing manufacturing because we are not mature enough yet.
Speaker 3: And I appreciate your pointing out that you are profitable
Speaker 3: and you're a leader in that space. Three D printing
Speaker 3: seems to be a pretty fragmented space right now. Give
Speaker 3: us a sense of who wants you combine with desktop,
Speaker 3: you'll be able to better compete with. Now, even beyond
Speaker 3: the three D printing ecosystem.
Speaker 6: We will be better equipped to comp with the entire
Speaker 6: you know, second tiered for fifth because we are number one,
Speaker 6: and the main reason is the broadest portfolio, unmixed material portfolio,
Speaker 6: material and software is key in our industry and those
Speaker 6: are also the one that generate the profit. So when
Speaker 6: we are coming to customers, we have two huge advantages.
Speaker 6: One is that we are selling in whatever it needs,
Speaker 6: not we have what we have because we are covering
Speaker 6: the whole technological space, so we are not selling what
Speaker 6: he needs.
Speaker 8: We sell what he needs.
Speaker 6: The second thing is that we have a full solution,
Speaker 6: including the material and the software, so the customer does.
Speaker 8: Not need to look outside our platforms.
Speaker 3: Another advantage you could have or you could tap into
Speaker 3: is the shareholders of desktop Desktop Metal went public in
Speaker 3: twenty twenty through respect and one of it's biggest shareholders
Speaker 3: is Alphabet with about a three percent stake in the company.
Speaker 3: Do you anticipate working more closely with Alphabet as a
Speaker 3: result of this transaction.
Speaker 6: No doubt that we can benefit and cooperate with the
Speaker 6: great shareholder base of desktop Metal. It's a group of
Speaker 6: people that believe in innovation. Desktop Metal is bringing the
Speaker 6: innovation to the table, but we are bringing the establishment,
Speaker 6: the go to market, the infrastructure to make this innovation
Speaker 6: a real product, the deliver values to the best mankey
Speaker 6: customers in the world.
Speaker 5: You say you look at them for help on innovation
Speaker 5: and bring in that innovative spirit.
Speaker 4: What specifically are we talking about.
Speaker 5: When you think about the alphabets of the world and
Speaker 5: how they can kind of lend some of that innovative
Speaker 5: spirit to you as well.
Speaker 8: The stop Meta located in Boston.
Speaker 6: They are highly linked to MIT and that tells the
Speaker 6: entire story. It's so hard to find talent in our
Speaker 6: industry and the ability to have great links in the academia,
Speaker 6: great shareholder that are interested.
Speaker 8: In breakthrough technologies. I think it's a great way to
Speaker 8: stick forward.
Speaker 5: Well, thanks for walking us through this acquisition today. Stratasi's CEO,
Speaker 5: yov Ziff, appreciate you joining us. More coming up, Microsoft
Speaker 5: is pushing back. It's formally filing to appeal the UK
Speaker 5: decision to block its mega merger with Activision Blizzard.
Speaker 4: More on that next.
Speaker 5: This is Bloomberg and keeping our eyes on shares of Splunk.
Speaker 5: The software company reported first quarter revenue that beat expectations
Speaker 5: and gave a second quarter forecast that's ahead of the
Speaker 5: CONCESSUS consensus estimates. The shares are coming down on the
Speaker 5: days they were up this morning, now write about unchanged.
Speaker 4: We'll continue watching throughout the show. This is Bloomberg. It's
Speaker 4: time now for talking tech.
Speaker 5: First Up Grabs co founder is stepping down from her
Speaker 5: operational roles at the company by year's end. She helps
Speaker 5: start the Singapore based ride handling and food delivery company
Speaker 5: more than a decade ago, and currently leads its technology
Speaker 5: and corporate strategy teams. Tan will also give up her
Speaker 5: seat on the board, though she will remain an advisor
Speaker 5: to the company and Microsoft president Brad Smith says the
Speaker 5: US should make a new agency to regulate artificial intelligence
Speaker 5: and the licensing requirements necessary to operate those AI tools.
Speaker 5: Smith outlined the company's policy regarding AI and echoed sentiments
Speaker 5: from OpenAI Sam Altman, saying that government oversight quote will
Speaker 5: ensure that humans remain in control of the technology. And
Speaker 5: In other Microsoft news, the company has formally filed its
Speaker 5: appeal against the UK's Competition and Markets Authority after the
Speaker 5: Anti Trust agency blocks its sixty nine billion dollars deal
Speaker 5: to buy Activision Blizzard. The CMA says it stands by
Speaker 5: its decision, arguing it would enable Microsoft to set the
Speaker 5: terms of the gaming market and sticking with video games,
Speaker 5: look at shares of Nintendo over the last few weeks.
Speaker 5: It took just three days for the latest installment in
Speaker 5: the Legend of Zelda franchise to some more than ten
Speaker 5: million copies worldwide. Four million of those were in the
Speaker 5: America's where the new game became Nintendo's fastest selling game ever.
Speaker 4: From New York and San Francisco. This is Bloomberg.
Speaker 5: Welcome back to Bloomberg Technology. I'm Alex Brankan San Francisco,
Speaker 5: and I'm Scarlett Foo in New York. Let's get a
Speaker 5: check on the markets.
Speaker 3: Right now, because the NASAC is flying high at the
Speaker 3: moment thanks to Nvidia's blowout sales forecast on the back
Speaker 3: of demand for its AI chips. And you look at
Speaker 3: the New York Fang Index, in which in Nvidia has
Speaker 3: the biggest waiting a thirteen percent waiting. It's flying even
Speaker 3: higher of more than three percent. And of course let's
Speaker 3: look at Nvidia itself gaining.
Speaker 4: More than twenty five percent.
Speaker 3: And in fact, there's a great story on the Bloomberg
Speaker 3: that betting against Nvidia have suffered massive losses. We're talking
Speaker 3: about a two point three billion dollar paper loss just
Speaker 3: today alone because of its big, big spike higher. Now,
Speaker 3: on the downside, you have the ETF that tracks shorter
Speaker 3: duration treasuries. We're talking one to three hour maturities. It
Speaker 3: is down for an eighth straight day, the longest losing
Speaker 3: streak in nineteen years, believe it or not. When there's
Speaker 3: a sell off in bonds, yields go up, reflecting the
Speaker 3: increased payouts that investors demand to buy the securities. And
Speaker 3: that's where I want to go next, because of course,
Speaker 3: the debt sealing drama dominates even as the market overall
Speaker 3: is hired. Today. Take a look at this next chart.
Speaker 3: It is a snapshot of the US government's checking account.
Speaker 3: This is the amount it has on hand to pay
Speaker 3: its bills, whether it's paying interest on its debt or
Speaker 3: sending out Social Security checks. As of Tuesday afternoon, it
Speaker 3: had about seventy six billion dollars. That move higher in
Speaker 3: mid April, which you can see that little blip in
Speaker 3: the last part of the chart was a result of
Speaker 3: people and companies paying their taxes. Treasury Secretary Janet Yellen
Speaker 3: has identified June first as a date the government may
Speaker 3: run out of money to honors obligations.
Speaker 4: According to economists of Goldmen.
Speaker 3: Sex, this cash level that we're looking at here will
Speaker 3: drop below thirty billion by June eighth or June knife.
Speaker 3: That is seen as the bare minimum for meeting federal
Speaker 3: obligations that come do alex.
Speaker 5: And While as the negotiations in Washington over the US
Speaker 5: debt limit persists, the risk of defaulting for that first
Speaker 5: time is growing. That's why more than one hundred and
Speaker 5: forty CEOs and Wall Street executives have been sounding the
Speaker 5: alarm bells and a letter to the President and congressional leaders.
Speaker 4: The group rights quote, high.
Speaker 5: Inflation has created stresses in our financial system, including several
Speaker 5: recent bank failures. Much worse will occur if the nation
Speaker 5: default on our debt obligations. We strongly urge that in
Speaker 5: a cord be reached quickly so that the country can
Speaker 5: invert this potentially disast devastating scenario. Joining us now with
Speaker 5: more insight is Charles Phillips, managing partner and co founder
Speaker 5: of Recognized Partners. He's also one of the many that
Speaker 5: signed that letter. Now, Charles, that letter was set May sixteenth.
Speaker 5: It's been a few days since the and we've had
Speaker 5: a headlines cross like Speaker Kevin McCarthy saying today, quote,
Speaker 5: I don't know if we'll have a deal today. He
Speaker 5: also said yesterday they need seventy two hours. They're going
Speaker 5: to take the seventy two hours to review and pass
Speaker 5: any bill that.
Speaker 4: Does come through.
Speaker 5: How has the urgency changed since you and your fellow
Speaker 5: CEOs and leaders wrote that letter just a little over
Speaker 5: a week ago.
Speaker 9: Well, there's a reason the markets are starting to react.
Speaker 9: You can see the credit default swats forager of changing
Speaker 9: and there's plenty of indicators out there, so it's gotten
Speaker 9: more urgent. It just so happens. And recognize we own
Speaker 9: a bunch of technology colpanies who had our annual meeting
Speaker 9: this week, so all of our companies were in, all
Speaker 9: of our investors were in. And normally you talk about
Speaker 9: technology changes, evaluation, operational improvements, and now we have to
Speaker 9: talk about this. We just went through a banking crisis, wondering,
Speaker 9: you know, kind of cost of credit. We had some
Speaker 9: SVV problems in FRB. We've solved those, and now we
Speaker 9: have to deal with this. Will your cost of capital
Speaker 9: be hire in six months? And three months and a month?
Speaker 9: That did you know about? So the planning aspect of
Speaker 9: this is we can have a gun people and so
Speaker 9: the uncertainty is the thing that people don't like dealing
Speaker 9: with right now.
Speaker 3: So that's interesting that you've been having these meetings and
Speaker 3: it keeps coming up. How are some of the leaders
Speaker 3: and the executives planning around this or through this?
Speaker 9: Well, fortunately we don't use a lot of leverage in
Speaker 9: our portfolio. We have some companies, but it certainly made
Speaker 9: us think differently about it. Don't count on that because
Speaker 9: we don't know what the cost is going to be.
Speaker 9: We may have to use more equity, but not everybody
Speaker 9: has that leeway to do that, so it means perhaps
Speaker 9: fewer deals get done, or you get done at a
Speaker 9: different price. The second thing is we rely on certain
Speaker 9: state and local government budgets, so we have companies that
Speaker 9: sell into that market. With the slugs windows closed, they
Speaker 9: can't fund the infrastructure spending that they normally rely on.
Speaker 9: We need those state and local governments to be spending
Speaker 9: because we have companies that rely on those contracts. So
Speaker 9: it has implications that ripples down to the state and
Speaker 9: local level as well.
Speaker 3: That's really interesting and something that perhaps a lot of
Speaker 3: lawmakers in Washington may not be immediately aware of. In
Speaker 3: your current role, you're obviously around entrepreneurs all the time,
Speaker 3: learning about new technologies from them, in turn helping them
Speaker 3: think through strategies, recruiting, connecting with customers. What do you
Speaker 3: think Congress and the White House as well don't fully
Speaker 3: understand about how their actions reverberate in the private sector.
Speaker 9: I think they don't understand that the US brand around
Speaker 9: the world accrues to each one of our companies that
Speaker 9: we're viewed as understanding business, very innovative, but coming from
Speaker 9: an economy that's rock solid, that is risk free treasuries,
Speaker 9: so that we have fiscal discipline and so we all
Speaker 9: kind of benefit from that brand. When you start to
Speaker 9: question that a bit, well, okay, you know, different from US,
Speaker 9: you get a certain patino around that, and that people
Speaker 9: believe that we know what we're doing because we're from
Speaker 9: the US, and so the brand aspect of that, I
Speaker 9: think people just don't quite understand that it hurts all
Speaker 9: over the companies.
Speaker 5: Charles, That reputational risk is really interesting. I'm curious with
Speaker 5: you as an investor yourself at recognize, does that reputational
Speaker 5: risk of these kind of chaotic conversations of the banking
Speaker 5: crisis that's gone on with some of the important funders
Speaker 5: of places like the tech sector like SVB, does that
Speaker 5: reputational risk post some challenges for you as you're looking
Speaker 5: for your growth investments going forward.
Speaker 9: Sure, so we're competing with other investors around the world,
Speaker 9: and so we want to look like we have an edge.
Speaker 9: Part of it is we have an operational background. Part
Speaker 9: of it is we're from the US, and part of
Speaker 9: it is we have a lower cost to capital win.
Speaker 9: So any one of those things that starts to break down,
Speaker 9: you look not as strong as you would otherwise, and
Speaker 9: you don't want people asking the question in the room
Speaker 9: what's going on over there? And so I just think
Speaker 9: the implications for the job market in general. If we
Speaker 9: can't pay our bills, social Security or whether it's our
Speaker 9: military or whatever, these things start to break down, it
Speaker 9: just looks like chaos everybody. And I think people thought
Speaker 9: that this couldn't really happen. You know, maybe they're playing
Speaker 9: a game of chicken, but they always work it out.
Speaker 9: But now you never know because things have gotten so
Speaker 9: PARTI sand it could actually happen. So that's what's different now,
Speaker 9: as people say, this could be a real thing that happens.
Speaker 5: So then do you start looking geographically to regions outside
Speaker 5: the US where the companies aren't sitting in a room
Speaker 5: and having to cope with uncertainty or a kind of
Speaker 5: a pause in really innovative strategies because there's too much
Speaker 5: chaos potentially looming for the economy here.
Speaker 4: In the US.
Speaker 9: Well, we've always been global, so we have companies in Ukraine,
Speaker 9: do in Latin America, all over the world, and so
Speaker 9: but relative to where we could be investing. Does it
Speaker 9: make perhaps the US look a little less attractive than
Speaker 9: it would otherwise, Sure, but that's like any global investor,
Speaker 9: So that's the everything. Capital can flow anywhere these days.
Speaker 3: You served on President Obama's Economic Recovery Board. You also
Speaker 3: served on the board of the New York Fed, so
Speaker 3: you've seen the fallout from political intransigence and also I've
Speaker 3: been in rooms with policymakers to discuss the economy. How
Speaker 3: do you think the twenty twenty three debt ceilings standoff
Speaker 3: differs from what we've seen in the past or is
Speaker 3: this just business as usual?
Speaker 4: To some extent, this.
Speaker 9: One seems more severe. It was shorter back then in
Speaker 9: twenty eleven, but we still have lost two point four
Speaker 9: trigg in a market cap, a big and three and
Speaker 9: extra interest cause so it still had implications this could
Speaker 9: go on longer because the size of it is so
Speaker 9: much larger, and so we had certain faith back them
Speaker 9: that people had to work it out. They didn't want
Speaker 9: alimal getting to happen. We're not sure that right now,
Speaker 9: so it makes it seem worse than it is.
Speaker 5: Charles, Thank you for breaking down down those private sector implications.
Speaker 5: Of US for US thanks to Charles Phillips, managing partner
Speaker 5: and co founder of Recognized Partners.
Speaker 4: Still coming up.
Speaker 5: The impact of generative AI on retail.
Speaker 4: We'll discuss all that and more with.
Speaker 5: The CEO of Buy Now, Pay Later platform klarnap next.
Speaker 5: Speaking of buy Now, Pay Later, we're also watching shares
Speaker 5: of best vive first quarter profits top estimates, and the
Speaker 5: company reiterated its annual target. Best Buy CEO of views
Speaker 5: this year as the bottom for the decline in tech demand.
Speaker 4: This is Bloomberg.
Speaker 5: Let's now take a look at the future of retail,
Speaker 5: which could be more personalized and tech focused in the
Speaker 5: context of the generative AI revolution. At least that's a
Speaker 5: projection laid out in Clarna's new Future of Retail report.
Speaker 5: Clarna CEO Sebastian Shimantowski joins us now for more on this.
Speaker 4: Sebastian, you are.
Speaker 5: Looking ahead to how people are going to be opening
Speaker 5: their pocketbooks. How will AI really start to show itself
Speaker 5: in terms of where people are spending in retail?
Speaker 8: Right?
Speaker 10: I think first of all, was like, I mean I
Speaker 10: tried this my first in November. When it got you know,
Speaker 10: stopped trending on Twitter or whatever, and I was like,
Speaker 10: what's this thing? And I got to tell you that
Speaker 10: it was magic to me, like I felt like when
Speaker 10: I opened Internet the first time twenty years ago. So
Speaker 10: I think it's you know, super impressive. We I know
Speaker 10: instantly got in touch with Sam and I said, look,
Speaker 10: I want clon out to be your favorite guinea pig.
Speaker 10: We're at open AI. Like you know, you throw it
Speaker 10: at as, we'll try it will learn. And I think
Speaker 10: that's the way to deal with these things. When you
Speaker 10: see a dramatic shift like this, you just want to learn,
Speaker 10: iterate and understand it. And I even coded myself on
Speaker 10: the lank chain the other day, so I feel quite cold.
Speaker 10: Never done that before. As one of my biggest regrets,
Speaker 10: I never became an engineer. With that said, look, I
Speaker 10: think what's very clear here is that the tool is
Speaker 10: out there. The applications that are really changing things and
Speaker 10: not yet, but they're going to come in the next
Speaker 10: six to twelve months. We are going to see better
Speaker 10: shopping experiences, you know, shopping assistance providing you a you know,
Speaker 10: a higher conversion rate for the retailers, you know, assisting
Speaker 10: consumers to find better prices, better offers, et cetera. So
Speaker 10: I'm expecting to see an explosion of new tools and
Speaker 10: services coming in the next twelve months, which will you know,
Speaker 10: utilize these technology to provide a much richer and more
Speaker 10: accurate experience for consumers.
Speaker 2: So super super interesting to follow.
Speaker 10: And also there seems to be, as the study shows
Speaker 10: of ours, a huge, you know, big opening among consumers.
Speaker 10: They're willing to try and test these things, and they
Speaker 10: also believe that it can make a difference for them.
Speaker 5: When I think about kind of the evolution of retail,
Speaker 5: we had kind of the mall start to bring things
Speaker 5: together on a regional.
Speaker 4: Basis or a town based basis.
Speaker 5: Then we had online shopping where you could buy anything
Speaker 5: from anywhere. Then the e commerce players showed up. But
Speaker 5: that's kind of evolved to this world where you almost
Speaker 5: have too much choice, right if you log onto any
Speaker 5: of the e commerce platforms, it's almost hard to narrow
Speaker 5: it down if you don't know exactly what you're looking for.
Speaker 5: So is that kind of a problem that you expect
Speaker 5: some of those early applications might be a really kind
Speaker 5: of low hanging fruit one to solve when it comes
Speaker 5: to bringing AI in perhaps to help folks discover things
Speaker 5: based on their own preferences a little bit more easily.
Speaker 2: I think you totally spot on look.
Speaker 10: I mean, remember, like when you were living in a
Speaker 10: like I did, in a small city of two hundred
Speaker 10: thousan people. It's growing up there, there was one department
Speaker 10: store and they had very nicely curated everything we needed
Speaker 10: to buy for us. So everything was there. We didn't
Speaker 10: need to look elsewhere. And nowadays you're like, you know,
Speaker 10: overwashed with all this stuff. But I think in general
Speaker 10: you should think about retail as three things. You think
Speaker 10: about the products and the brand themselves. You think about
Speaker 10: the curation, and then you think about, you know, the
Speaker 10: technology and the logistics to bring the product to the
Speaker 10: consumer at the time they wanted and at the right
Speaker 10: price and so forth. Right, And I think on the
Speaker 10: curation side, Internet has gone crazy, right We've seen everything
Speaker 10: from Instagram shopping, you know, shoppable valuables, you know Instagram
Speaker 10: people trying to affect you to like, or influencers recommending products,
Speaker 10: but also obviously the retailers and you know, the brands
Speaker 10: themselves trying to curate. I think the curation, to your point,
Speaker 10: is one of the areas there is a huge opportunity
Speaker 10: to offer better creation.
Speaker 2: We launched search in the US.
Speaker 10: I mean, there's been nobody launching search in the US
Speaker 10: against Amazon for the last fifteen years, and we see
Speaker 10: in tremendous traction to reinvent product search just like these
Speaker 10: these things. Right, So, how do you both intent driven
Speaker 10: discovery where you're looking for the exact right product but
Speaker 10: right price, you know, et cetera, But also the kind
Speaker 10: of inspirational That's definitely an area where I.
Speaker 2: Think and curation is so critical. I want it to
Speaker 2: be personal to be right.
Speaker 10: You take is a good example of that in China,
Speaker 10: you know it's nowadays it's used to be eighty percent search,
Speaker 10: twenty percent was recommendations by AI. Currently eighty percent of
Speaker 10: what people buy on TMOL et cetera are recommendations by
Speaker 10: AI that are specific to means an individual and not
Speaker 10: search anymore. So that just shows you like what this
Speaker 10: technology can mean as.
Speaker 3: A shift, yeah, and certainly making things more efficient in
Speaker 3: the process. Google CEO wrote in and not ed recently
Speaker 3: that building AI responsibly is the only race that matters
Speaker 3: as opposed to building up your AI chops, and he
Speaker 3: also brought up regulation there too. What are you seeing
Speaker 3: as some of the potential problems or pitfalls or areas
Speaker 3: that might be concerning that would result from the use
Speaker 3: or integration of AI in.
Speaker 4: Shopping, for instance, in your world?
Speaker 10: Well, I think as also since we're a payments company,
Speaker 10: obviously fraud is a big, big cluss, right, and we
Speaker 10: can see that this is going to have implications on
Speaker 10: fraud protection. I think, what you know, there's a lot
Speaker 10: I think on a societal level as a society, and
Speaker 10: I actually I respect that a lot. When I speak
Speaker 10: to people tech leads, I am very happy to hear
Speaker 10: them not only promote the amazing opportunities that this presents,
Speaker 10: but also kind of highlight the risks and that we
Speaker 10: treat this in a mindful way. But that's more from
Speaker 10: a society perspective. If I think more of my business,
Speaker 10: I think there's one critical thing that could actually make
Speaker 10: a huge difference from politicians in some markets in Europe.
Speaker 10: Sweden is a good example where based currently we have
Speaker 10: an electronic identification that is available to everyone.
Speaker 2: Everyone has it on the phone.
Speaker 10: That means there is no fraud, there is no problems
Speaker 10: with people pretending to be somebody else. There's much less
Speaker 10: fraud than in many other markets that we see. It's
Speaker 10: a simple thing a digital pathport and digital identification. And
Speaker 10: I think another law that we should expect to see
Speaker 10: is if I interact with something, I want to know
Speaker 10: if it's a computer or human. I think you have
Speaker 10: the responsibility to be very very transparent about that. So
Speaker 10: I think those are two very simple things that could
Speaker 10: actually mitigate some of the early risks and changes that
Speaker 10: for to your point, AI will come, We'll.
Speaker 3: Bring There are people who are out there who might
Speaker 3: say that Karna is pivoting towards AI and a commitment
Speaker 3: to AI as regulation comes forth. On by now pay
Speaker 3: later in Australia, for instance, potentially in the UK as well,
Speaker 3: how would you respond to that?
Speaker 2: We'll get it.
Speaker 10: But I think the buy now, pay later is a
Speaker 10: fantastic credit product for consumers because you know, everyone should
Speaker 10: watch Sorry to make some marketing here for somebody else here,
Speaker 10: but you should watch credit Cards Explain on Netflix and
Speaker 10: you'll get a twenty five minute quick summary of all
Speaker 10: the bad practices of all the stuff the banks have
Speaker 10: been doing with credit cards, how they really try you
Speaker 10: to build up the biggest balance to revolve on it
Speaker 10: on the longest period of time. I mean, the average
Speaker 10: balance in the US right now stands it's five three
Speaker 10: hundred dollars compared to one hundred fifty dollars for our
Speaker 10: binapay later products. So I think that like it's interest free,
Speaker 10: it's fixed installments. We don't push a credit limit in
Speaker 10: your face to try to make you believe that you
Speaker 10: can spend more than you have. I mean, we're trying
Speaker 10: to build a responsible credit card. Like, no, it's still credit,
Speaker 10: so obviously all you know, credit has risks in itself
Speaker 10: and needs to be offered in a responsible way. But
Speaker 10: as a credit form, it is superior to the credit
Speaker 10: at the credit cards, and it's actually also better for
Speaker 10: us in an uncertain economical environment because we underwrite every transaction.
Speaker 10: That's why we're seeing forty percent below credit card industry
Speaker 10: standard losses because when we shift our underwriting, it takes
Speaker 10: me two months and half of my balance sheet is
Speaker 10: underwriting on the new methodology. So I can really adjuct
Speaker 10: quickly change to an economical environment like this one, while
Speaker 10: you know, banks will wait two years before they see
Speaker 10: the shift in their balance sheet due to the changes
Speaker 10: in underwriting.
Speaker 5: Sebashian and I want to ask one more quick one on
Speaker 5: ai because we've been talking about that the race is on.
Speaker 4: The race is probably also on for talent.
Speaker 5: I know you jumped in really quickly to work with
Speaker 5: open Ai, but what does hiring like look like internally
Speaker 5: at Karna? Where are you finding kind of the individuals
Speaker 5: who can make sure that that type of technology can
Speaker 5: be seamlessly tested and integrated into what you're rolling out
Speaker 5: for consumers?
Speaker 2: You know what?
Speaker 10: I think it's obviously an important question, and obviously, you know,
Speaker 10: data scientists and so forth are in higher demand.
Speaker 2: I wouldn't say.
Speaker 10: That's the case, but I also want to get again
Speaker 10: how much this is just about, you know, curiosity and
Speaker 10: encouraging people within your culture to innovate and.
Speaker 2: To try and to test.
Speaker 10: I you know, one way that I measure right now
Speaker 10: clonas ai involvement is I look, we offer all of
Speaker 10: our employees a chat city before powered open Ai account,
Speaker 10: and we're just looking at how many are actually using it.
Speaker 10: And I think right now we're at about one thousand,
Speaker 10: five hundred among five thousand employees. I want to get
Speaker 10: to five thousand. I want each one of them to
Speaker 10: experiment and learn how to utilize this technology. I mean
Speaker 10: it took years for people to really discover the power
Speaker 10: of Google twenty years ago and how much that could
Speaker 10: save you time and make you more efficient and more productive.
Speaker 10: So like I think also like one shouldn't underestimate, just
Speaker 10: like encouraging and.
Speaker 2: Inspiring people in timely to adult to eat different pride.
Speaker 3: So it's about experimenting and engaging right now before we
Speaker 3: can draw any big conclusions.
Speaker 4: Really appreciate your joining us.
Speaker 3: Sebastian Simia Kowski, the CEO of Clarina, joining us from
Speaker 3: Stockholm at the moment. Florida Governor Ron DeSantis' live event
Speaker 3: on Twitter was more by technical glitches with servers struggling
Speaker 3: to handle the demand, and led to his announcement being
Speaker 3: hosted on venture capitalist David Sax's account instead.
Speaker 4: Sax was moderating, that was insane.
Speaker 2: Sorry, we are actually doing this from David Taxis Twitter
Speaker 2: account because it looks like doing it from mine basically
Speaker 2: broke the Twitter system.
Speaker 3: Joining us now to break down the launch of dis
Speaker 3: this his presidential run on Twitter is Bloomberg's Sarah Fryer, Sarah,
Speaker 3: how much of this technical train wreck can you tie
Speaker 3: back directly to Elon Musk's staff firings and various cost cuts.
Speaker 11: Well, they don't have a lot of the people that
Speaker 11: they used to have who were working on this kind
Speaker 11: of infrastructure stability. They got rid of use of a
Speaker 11: data center that they had in Zacramento, which increased the
Speaker 11: stress on their systems, and they've been making product changes.
Speaker 11: So those factors plus the fact that they didn't really
Speaker 11: prepare for this moment. It seems like they didn't stress
Speaker 11: test their systems or this wouldn't have happened.
Speaker 4: Now.
Speaker 5: I was tuning in yesterday and Elon muss said, hopefully
Speaker 5: this can be a platform with people of divergent political
Speaker 5: views to exchange those views. I have to ask, though,
Speaker 5: in the course of that conversation, did they put diverse
Speaker 5: political views on display.
Speaker 4: With this Ron DeSantis announcement?
Speaker 2: Oh?
Speaker 11: Absolutely not. It was questions by people who were favorable
Speaker 11: to that campaign, and listen, this could blow back on
Speaker 11: Musk and Twitter's business because historically social media executives have
Speaker 11: not tried to align themselves with a particular party. They've
Speaker 11: tried to be neutral because what they're trying to do
Speaker 11: is have the widest possible user base and the widest
Speaker 11: possible set of advertisers who want to spend money reaching
Speaker 11: those users. And if Twitter positions itself as you know,
Speaker 11: we are more friendly to one political party over the other,
Speaker 11: then I do think that some advertisers will shy away
Speaker 11: from that.
Speaker 4: But I did.
Speaker 11: See the new CEO, Linda Yakarino in the room.
Speaker 4: She was there. She was there, and so were you.
Speaker 4: She could fix it. Maybe we'll see.
Speaker 5: Thank you Sarah for wrapping that up for us. Thanks
Speaker 5: to Bloomberg.
Speaker 4: Sarah Friar and.
Speaker 5: David Sacks will be joining Bloomberg TV in thirty minutes
Speaker 5: to talk about this more. That does it for this
Speaker 5: edition of Bloomberg Technology. Don't forget to check out the
Speaker 5: b Tech podcast. You can find it on the terminal
Speaker 5: as well as online on Apple, Spotify. iHeart and this
Speaker 5: is Bloomberg.
Speaker 8: He doesn't decide it when you don't. The hype w