WEBVTT - White House Tracking Apple Watch Case, ByteDance Sales Top $110 Billion 0:00:01.760 --> 0:00:05.400 From the heart where innovation, money and power Collie in 0:00:05.519 --> 0:00:10.479 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.480 --> 0:00:11.879 and Ed Ludlove. 0:00:25.000 --> 0:00:27.080 And Caroline Hein and Bloomberg's multi quarters in New York 0:00:27.120 --> 0:00:30.000 and Ludlow He's off. This is Bloombog technology coming up 0:00:30.080 --> 0:00:32.680 as Apple's smart watch ban it looms. The White House 0:00:32.760 --> 0:00:35.120 is tracking the case for the potential to overall the 0:00:35.120 --> 0:00:38.280 import Holt decision. Will break down the latest from Washington 0:00:38.600 --> 0:00:41.640 plus Byte Dance sales reportedly surged this year to more 0:00:41.640 --> 0:00:44.360 than one hundred and ten billion dollars, potentially overtaking competitor 0:00:44.440 --> 0:00:46.760 ten Cent. Will break down what it says about the 0:00:46.760 --> 0:00:51.040 state of TikTok's e commerce business. And we'll discuss how 0:00:51.120 --> 0:00:54.440 hot or not the private secretary market is while start 0:00:54.520 --> 0:00:57.200 up employees and investors they seek to sell shares of 0:00:57.240 --> 0:01:01.000 their red hot companies. The first let's check on these markets, 0:01:01.040 --> 0:01:03.840 because still relatively hot. When you're looking at the NASDAK, 0:01:03.880 --> 0:01:05.600 we're still managing to push up about a quarter of 0:01:05.640 --> 0:01:07.520 a percentage point. In fact, that's that one hundred and 0:01:07.640 --> 0:01:10.880 another record high mom markets. They're also manage at rally 0:01:10.880 --> 0:01:13.759 that everything rallies back upon us. We're still feeling that 0:01:13.800 --> 0:01:15.760 some of the economic data is coming in strong, that 0:01:15.800 --> 0:01:19.080 consumer confidence building, and indeed maybe the macro picture means 0:01:19.080 --> 0:01:21.640 that we'll be able to tame some of that interest 0:01:21.720 --> 0:01:24.880 rate hikes and indeed some interest rate cuts coming some 0:01:25.040 --> 0:01:27.160 twenty twenty four, just think about what's happening over in 0:01:27.160 --> 0:01:29.880 the UK, great British pound actually sinking as that inflation 0:01:30.000 --> 0:01:32.880 data shows two there we're seeing caoling in inflation. 0:01:33.160 --> 0:01:33.960 Look at what's. 0:01:33.760 --> 0:01:36.319 Happening on the individual movers and case by case basis. 0:01:36.400 --> 0:01:39.039 I'm looking at number one, China didn't see the moon 0:01:39.160 --> 0:01:41.319 music of buying that we've seen currently here in the 0:01:41.360 --> 0:01:43.679 United States. And then as that Golden Dragon just on 0:01:43.720 --> 0:01:46.039 the downside by one point two percent. This is that 0:01:46.319 --> 0:01:48.520 we see maybe some of the big e commerce players 0:01:48.640 --> 0:01:50.880 feel the pain coming from one particular bike dance. 0:01:50.920 --> 0:01:52.680 We'll dig into that in a little bit later. I'm 0:01:52.680 --> 0:01:53.360 also look at what's. 0:01:53.280 --> 0:01:55.640 Happening with alphabet though of course Google, we're going to 0:01:55.640 --> 0:01:58.400 be digging into what really the changes at Google play 0:01:58.400 --> 0:02:00.840 Store are going to be you would see in terms 0:02:00.880 --> 0:02:03.480 of a business model impact. So the investor base likes that, 0:02:03.560 --> 0:02:05.520 and I'm also looking at what's happening with Apple, because 0:02:05.760 --> 0:02:08.639 this is the key story upon us. Will they indeed 0:02:08.680 --> 0:02:12.480 see a ban being enacted on the import of their watches? 0:02:12.560 --> 0:02:14.440 What does that mean? And how much of the moment 0:02:14.520 --> 0:02:15.320 is the Biden. 0:02:15.000 --> 0:02:18.760 Administration currently tracking the impending US band We understand they 0:02:18.800 --> 0:02:21.160 are of nearly all Apple watch sales. 0:02:21.440 --> 0:02:24.480 They're due to, of course, all surrounding. 0:02:24.000 --> 0:02:26.600 A pattern dispute with the power to veto the decision 0:02:26.800 --> 0:02:28.760 wrestling in the US trade representative. 0:02:28.960 --> 0:02:31.519 Now, we discussed this with the CEO of Massimo. 0:02:31.600 --> 0:02:34.160 Of course, this is the company that is currently feeling 0:02:34.160 --> 0:02:36.760 that its patterns are being infringed, and the CEO there 0:02:36.919 --> 0:02:40.240 told us that look, thus far, the administration has been 0:02:40.240 --> 0:02:40.560 in touch. 0:02:40.639 --> 0:02:41.079 Take a listen. 0:02:41.960 --> 0:02:44.280 So I don't expect the administration to step in here. 0:02:44.760 --> 0:02:48.000 And every time Apple contacts them, I guess by a 0:02:48.080 --> 0:02:51.240 law they have to call us to get our response. So, yes, 0:02:51.320 --> 0:02:53.720 we've been in contact with them, and we don't think 0:02:53.720 --> 0:02:57.000 they will intervene. I think there are a recent stunt 0:02:57.080 --> 0:02:59.000 to pull the products off the market. A few days 0:02:59.000 --> 0:03:02.240 earlier than that, itc decided it should be pulled off 0:03:02.240 --> 0:03:06.400 the market. They're trying to get the public to force 0:03:06.480 --> 0:03:09.280 the Biden administration to do something they don't think they 0:03:09.280 --> 0:03:11.280 should do. But I don't think it's going to work. 0:03:11.800 --> 0:03:13.000 And pleased to save New Megs. 0:03:13.040 --> 0:03:15.560 Linda and who really helps drive the coverage for the 0:03:15.600 --> 0:03:19.240 team here in New York Technology joins us remind us 0:03:19.240 --> 0:03:21.440 go back to basics. We're thinking that some sort of 0:03:21.960 --> 0:03:25.040 import ban will be enacted because Almasimo thinks this pattern's 0:03:25.080 --> 0:03:25.799 being infringed here. 0:03:25.880 --> 0:03:27.560 Well, first, Caroline, thank you for having me. 0:03:27.600 --> 0:03:28.680 It's nice to be with you. 0:03:29.840 --> 0:03:33.560 So this all stems from this big International Trade Commission 0:03:33.600 --> 0:03:37.360 case in which the agency ruled that Apple had violated 0:03:37.440 --> 0:03:41.520 two very important health technology patterns in developing some of 0:03:41.560 --> 0:03:45.600 its most recent Apple Watch series. And as a part 0:03:45.600 --> 0:03:48.600 of that ruling, they impose not only a US ban 0:03:49.080 --> 0:03:51.720 on the equipment that Apple needs to assemble its watches 0:03:51.760 --> 0:03:54.280 here in the US, but also an injunction that will 0:03:54.400 --> 0:03:59.520 essentially block Apple from directly selling those series of Apple 0:03:59.560 --> 0:04:03.160 Watches here in the US. And as you noted, we're 0:04:03.200 --> 0:04:05.680 counting down the days to that actual band. I mean 0:04:05.680 --> 0:04:09.520 we're talking about like right after Christmas that that band 0:04:09.600 --> 0:04:12.560 takes effect. And you know, as the CEO of Masimo 0:04:12.880 --> 0:04:17.120 just characterized as a stunt. Apple is deciding to sort 0:04:17.120 --> 0:04:20.400 of wind down the sales ahead of that end of 0:04:20.480 --> 0:04:22.640 Christmas Day injunction and. 0:04:22.560 --> 0:04:24.920 Of course a key selling time, a key issue when 0:04:24.920 --> 0:04:26.800 you think about what's over in the UK, A Boxing 0:04:26.880 --> 0:04:29.279 day sale, the idea everyone goes out and starts purchasing 0:04:29.279 --> 0:04:33.480 like they do after Thanksgiving here in the US. What therefore, 0:04:33.640 --> 0:04:35.920 here in the US does it mean when a fix 0:04:36.000 --> 0:04:38.960 could or could not be enacted, Because most CEO was 0:04:38.960 --> 0:04:40.440 saying that he didn't think this could be some sort 0:04:40.480 --> 0:04:41.320 of software update. 0:04:41.400 --> 0:04:43.760 Ultimately, yeah, I mean he was saying that it would 0:04:43.800 --> 0:04:45.480 have to be a hardware change, right. 0:04:45.520 --> 0:04:47.280 He was telling us that for days, and. 0:04:48.120 --> 0:04:52.560 If a fix cannot be enacted, if there is no 0:04:52.720 --> 0:04:56.039 deal that has reached between Apple and Massimo, if the 0:04:56.080 --> 0:04:59.760 White House doesn't step in because it has had almost 0:05:00.000 --> 0:05:03.400 few months to decide on a veto, then you do 0:05:03.480 --> 0:05:07.040 see the sales directly from Apple affected. Now, one thing 0:05:07.080 --> 0:05:11.040 that I wanted to clarify. You said all Apple watches 0:05:11.160 --> 0:05:12.479 will stop in sales. 0:05:12.720 --> 0:05:14.359 That's not necessarily the case. 0:05:14.400 --> 0:05:18.040 That is Apple's direct sales from its own retail stores. 0:05:18.279 --> 0:05:20.200 So I just want to point out that you can 0:05:20.240 --> 0:05:23.800 still go get your Apple watches at Best Buys at Walmarts, 0:05:24.000 --> 0:05:27.280 not to give them any you know, uh, free marketing, 0:05:27.640 --> 0:05:30.400 but they have said, these other third party retailers have said, 0:05:30.440 --> 0:05:33.960 we will continue selling these watches. What remains a question 0:05:34.480 --> 0:05:37.760 is what happens if the inventories at these third party 0:05:37.880 --> 0:05:40.560 box retail shops end up drawing down. 0:05:40.640 --> 0:05:42.000 Where did they get the rest of it? 0:05:42.040 --> 0:05:45.479 Can they still bring in those devices from Asia or 0:05:45.520 --> 0:05:49.920 other manufacturing centers by Apple and keep those sales going 0:05:50.000 --> 0:05:50.600 for Apple? 0:05:50.760 --> 0:05:53.080 Like, we don't know, and I wonder whether it cake 0:05:53.120 --> 0:05:54.200 stops some sort of rush. 0:05:54.600 --> 0:05:56.800 Yeah, well, I'm just I was saying the other day 0:05:56.839 --> 0:05:58.560 that I'm glad that I got my Apple watching. Before that, 0:05:58.839 --> 0:06:01.960 we have been checking said reporters that to Apple stores 0:06:02.000 --> 0:06:04.440 to see if there has been a rush. No rush yet, 0:06:04.440 --> 0:06:05.000 but you never know. 0:06:05.240 --> 0:06:08.880 Okay, see not that on the ground reporting. And they're 0:06:09.000 --> 0:06:12.280 also no marketing for Apple here, but just the odd 0:06:12.360 --> 0:06:15.560 perspective on where on indeed if you can still purchase it. 0:06:15.640 --> 0:06:17.800 Let's just continue the anti trust. 0:06:17.640 --> 0:06:19.360 Side of all of this and ultimately what it means 0:06:19.440 --> 0:06:21.680 for patterns in the longer term. Let's bring in Nicholas 0:06:21.720 --> 0:06:26.160 Matter's principal at McCaul Smith's intellectual property practice, and how 0:06:26.200 --> 0:06:29.240 often have you seen this sort of tactic being used? 0:06:29.279 --> 0:06:32.440 Nicholas really with Apple sort of getting ahead of an 0:06:32.520 --> 0:06:36.440 ultimate potential ban and trying to force consumers perhaps hand here. 0:06:37.720 --> 0:06:40.680 They've actually have been very rare in recent years, primarily 0:06:40.720 --> 0:06:45.280 because injunctions or exclusionary relief like a ban on importation, 0:06:45.440 --> 0:06:49.560 have been pretty rare in patent litigation since a Supreme 0:06:49.600 --> 0:06:52.000 Court decision in about two thousand and six, So they 0:06:52.120 --> 0:06:55.920 just haven't been occasions where a major player like Apple 0:06:55.960 --> 0:06:58.880 would frequently face this kind of situation. 0:07:00.160 --> 0:07:02.320 We were just debating as to whether the US Trade 0:07:02.360 --> 0:07:05.200 Representative or indeed the administration would in any way step 0:07:05.240 --> 0:07:08.720 in here. Overall, just give us your perspective on what 0:07:08.760 --> 0:07:10.920 the pros are doing that and what the cons are 0:07:11.400 --> 0:07:13.280 of ultimately a government weighed in here. 0:07:14.320 --> 0:07:17.080 Well, I mean, the pros are obviously people like Apple watches, 0:07:17.120 --> 0:07:20.120 and it would be a politically popular decision. The cons 0:07:20.120 --> 0:07:23.400 are that it doesn't, you know, it doesn't promote innovation 0:07:23.480 --> 0:07:27.000 in the US because that's why patent rights are important, 0:07:27.000 --> 0:07:30.160 and a company like Massimo is entitled to either license 0:07:30.200 --> 0:07:32.920 its patents to Apple on you know, the terms that 0:07:32.960 --> 0:07:35.640 they think are appropriate or to you know, use their 0:07:35.680 --> 0:07:39.720 exclusivity from the technology they developed to you know, gain 0:07:39.800 --> 0:07:42.960 market share. And if Apple, you know, the if Apple 0:07:42.960 --> 0:07:44.560 doesn't want to do a deal with them or come 0:07:44.640 --> 0:07:48.000 up with its own solution to the technical problems Massimo solved, 0:07:48.400 --> 0:07:51.120 then you know, then the Apple is going to face 0:07:51.120 --> 0:07:53.040 a bandal like this, or at least have to offer 0:07:53.280 --> 0:07:55.080 products that don't have this feature. 0:07:55.640 --> 0:07:58.400 We were speaking with the CEO of Massimo you this 0:07:58.480 --> 0:08:01.280 time yesterday, and his points were clear. He felt that 0:08:01.360 --> 0:08:04.240 his chief technology officer, his chief medical officer had been 0:08:04.320 --> 0:08:06.080 lured over to Apple. There was nothing he could have 0:08:06.120 --> 0:08:08.720 done in terms of paying it. Even further, they just 0:08:08.800 --> 0:08:11.800 had the resources that couldn't be matched by a smaller 0:08:11.800 --> 0:08:14.440 companies such as Masimo. And I'm interested as to the 0:08:14.480 --> 0:08:16.880 other clients that you serve, the conversations you have, how 0:08:16.960 --> 0:08:19.160 much is this sort of behavior happening if indeed it 0:08:19.280 --> 0:08:20.360 is exactly what occurred. 0:08:21.440 --> 0:08:24.160 So I hear that that kind of story all the 0:08:24.200 --> 0:08:28.720 time from clients. The large technology company taking you know, 0:08:28.840 --> 0:08:32.720 their intellectual property via trade secrets or patents and then 0:08:32.920 --> 0:08:36.280 you know, using their other market advantages to beat the 0:08:36.320 --> 0:08:40.280 smaller guy. Patents are fundamentally a tool of small companies, 0:08:40.320 --> 0:08:43.600 and that's and we need them to incentivize small companies 0:08:43.640 --> 0:08:47.200 to invent the next technology because small companies are where 0:08:47.240 --> 0:08:52.680 the groundbreaking innovation tends to occur. And if the bigger guys, 0:08:52.760 --> 0:08:56.080 they're always going to win if they're allowed to copy, 0:08:56.200 --> 0:08:59.560 because they have you know, the pre existing you know, 0:08:59.640 --> 0:09:02.680 market advantages, they've got a well known brand, the consumer 0:09:02.720 --> 0:09:06.840 based distribution channels, and what the small guys have is 0:09:07.040 --> 0:09:10.000 their innovative technology. And so that's that's why it's so 0:09:10.080 --> 0:09:14.000 important for uh, you know, to be able to enforce 0:09:14.040 --> 0:09:16.160 intellectual property rights the way Masimon is. 0:09:17.320 --> 0:09:21.079 To that end, do you anticipate that I mean a 0:09:21.120 --> 0:09:23.880 fewer to put probabilities on it, some sort of deal 0:09:23.880 --> 0:09:28.079 will ultimately be reached here. Massive has been spending millions, yes, 0:09:28.120 --> 0:09:31.920 to ultimately potentially prove a point here and to fight 0:09:31.960 --> 0:09:34.840 for the smaller companies, but also because it thinks it 0:09:34.920 --> 0:09:36.800 could win a lucrative deal ultimately. 0:09:38.480 --> 0:09:40.280 Well, no, I mean I don't know what Mass and 0:09:40.320 --> 0:09:42.720 those business objectives are. They have said they're willing to 0:09:42.760 --> 0:09:45.600 do a license. You know, the question is always at 0:09:45.600 --> 0:09:48.679 what price? And isn't a price that they're willing to 0:09:48.720 --> 0:09:52.120 take in Apple's willing to pay, you know, And it 0:09:52.200 --> 0:09:55.760 also probably turns a lot on what happens on the 0:09:55.800 --> 0:09:58.240 twenty fifth or the twenty sixth, when the President has 0:09:58.280 --> 0:10:03.120 to issue its decision. We see vetos are extremely rare. 0:10:03.160 --> 0:10:05.240 In fact, I think there's only been one in history. 0:10:05.600 --> 0:10:08.880 Now Apple was the beneficiary of that one veto, So 0:10:09.000 --> 0:10:11.480 it may be feeling a little bit of invincibility here 0:10:12.280 --> 0:10:14.600 because it has such a well known brand and such 0:10:14.640 --> 0:10:19.400 political cloud. But we'll have to see what happens, and 0:10:19.040 --> 0:10:22.839 if the President doesn't veto it, that may bring Apple 0:10:22.880 --> 0:10:23.400 to the table. 0:10:24.080 --> 0:10:26.240 Nicholas, it's great to get your expertise. Thank you for 0:10:26.280 --> 0:10:29.280 spending some time with us. Nicholas Massage of McCool smith. 0:10:37.080 --> 0:10:40.200 TikTok owner byte Dance saw sales surge in twenty twenty 0:10:40.240 --> 0:10:42.160 three to over one hundred and ten billion dollars, and 0:10:42.200 --> 0:10:44.520 that's all according to people familiar with the matter, that 0:10:44.559 --> 0:10:47.600 would put the company ahead of rivals like Tencent. And 0:10:47.640 --> 0:10:50.040 of course it says byte Dance is seeking to expand, 0:10:50.080 --> 0:10:52.480 particularly in the area of e commerce. For more, let's 0:10:52.480 --> 0:10:55.440 bring in Bloomberg's Henry Wren joining us from London and Henry. 0:10:55.480 --> 0:10:57.680 When you're looking at what the driving force of this 0:10:57.760 --> 0:11:00.319 sales pick up, I mean it is phenomenal percentage point 0:11:00.360 --> 0:11:03.439 growth here is it at the expense of market competition. 0:11:05.040 --> 0:11:10.120 So as we our Asian colleagues broke this story. So 0:11:10.240 --> 0:11:13.080 as you said, so by done, its revenue is on 0:11:13.240 --> 0:11:16.239 track to exceed one hundred and ten billion US dollars 0:11:16.440 --> 0:11:19.199 and its growth driver really comes from e commerce. As 0:11:19.200 --> 0:11:22.800 you mentioned, it's not just overseas but also at home. 0:11:22.840 --> 0:11:26.640 So at home it's expanding rapidly into areas such as 0:11:27.320 --> 0:11:30.240 helping people to book restaurant tables, helping people to book 0:11:30.440 --> 0:11:35.000 restaurant takeouts, but also selling clothes online, but also overseas. 0:11:35.160 --> 0:11:39.800 For example, just earlier this month, it bought Indonesia's Toclopedia, 0:11:39.840 --> 0:11:43.520 which is one of the major e commerce platforms in Indonesia. 0:11:43.600 --> 0:11:46.400 And remember Indonesia is one of the biggest e commerce 0:11:46.480 --> 0:11:50.280 markets in Southeast Asia. So as you said, it's expanding 0:11:50.360 --> 0:11:54.560 rapidly overseas in e commerce offering, but also at home 0:11:54.600 --> 0:11:57.280 as well, but it can be at the cost of 0:11:57.360 --> 0:12:02.400 some other competitors. For example, mayitwe another food delivery platform 0:12:02.440 --> 0:12:06.240 in China, but also Ali BABA, which is which is 0:12:06.400 --> 0:12:10.000 under pressure by not only a PDD but also by 0:12:10.120 --> 0:12:11.959 dance in e commerce offerings front. 0:12:12.559 --> 0:12:16.440 Talking about pressure, we're seeing it managing to scale at 0:12:16.440 --> 0:12:20.240 home despite a weakening economy. We're seeing it particularly showing 0:12:20.520 --> 0:12:22.439 strength in e commerce now having done that one and 0:12:22.440 --> 0:12:24.480 a half billion dollar deal in Indonesia. But here in 0:12:24.520 --> 0:12:27.600 the US there is still some political anxiety. Are we 0:12:27.760 --> 0:12:29.800 likely to see that continue into twenty twenty. 0:12:29.520 --> 0:12:33.319 Four exactly, especially when you think of twenty twenty four 0:12:33.360 --> 0:12:36.600 it's an election year and the climax was really in 0:12:36.640 --> 0:12:39.600 March this year, right, So when you remember the TikTok 0:12:39.679 --> 0:12:43.720 ceo show to appeared in Congress, has testified before Congress 0:12:43.760 --> 0:12:47.960 when some lawmakers threaten to ban this app completely in 0:12:48.000 --> 0:12:50.360 the US. And I would want to point out that 0:12:50.400 --> 0:12:52.959 the regulatory pressure is not just in the US, because 0:12:53.000 --> 0:12:57.160 when you look at India, which is another big country, 0:12:57.160 --> 0:12:59.760 and remember this year India surpass China is the most 0:12:59.760 --> 0:13:02.760 part this country in the world. The TikTok app is 0:13:02.840 --> 0:13:05.840 actually banned in India, and there's no promise said to 0:13:05.880 --> 0:13:08.480 those regulatory pressure want for us in China as well, 0:13:08.480 --> 0:13:11.560 because what we've been seeing Chinese governments has been cracking 0:13:11.559 --> 0:13:15.920 down severely on platform companies domestically as well, so as 0:13:15.960 --> 0:13:19.240 you said, regulatory pressures could be coming, but also on 0:13:19.360 --> 0:13:20.360 multiple fronts. 0:13:20.920 --> 0:13:22.720 For now, it seems as though the growth is still 0:13:22.720 --> 0:13:26.480 about thirty percent year over year, so revenue really managing 0:13:26.520 --> 0:13:28.680 to rise up amid some of that pushback here in 0:13:28.720 --> 0:13:30.520 the US, Henry w Ren. Great to catch up with 0:13:30.559 --> 0:13:32.960 you as always, Thank you so much. Meanwhile, let's stick 0:13:33.000 --> 0:13:37.199 with byte Dance and ultimately, how we're seeing brands companies, 0:13:37.440 --> 0:13:41.320 Will you launch themselves in popularity using the power of influence? 0:13:41.600 --> 0:13:45.439 Jacob Cooks with us WPIC Marketing Technologies co founder and CEO. 0:13:45.559 --> 0:13:48.640 You are staying up late over there in China, and 0:13:48.679 --> 0:13:49.640 I'm interested, Jacob. 0:13:49.720 --> 0:13:52.840 Ultimately, the sort of sales growth that you hear reporting 0:13:52.880 --> 0:13:55.320 of thirty percent year on year, is that what you 0:13:55.920 --> 0:13:59.600 are seeing bear out with your own data. 0:14:00.080 --> 0:14:02.839 Domestically, we're seeing it in line or actually even a 0:14:02.880 --> 0:14:05.920 little bit higher with what we were not surprised by 0:14:05.920 --> 0:14:08.680 that number at all. We would have actually seen it 0:14:08.720 --> 0:14:12.800 coming in mid thirties, maybe thirty six, thirty seven. It 0:14:12.880 --> 0:14:16.040 really is, you know, the platform of the younger generation. 0:14:16.120 --> 0:14:19.440 As we're seeing these consumers. You know, really the gen 0:14:19.560 --> 0:14:22.160 z really come into their own right now. This is 0:14:22.360 --> 0:14:25.360 what they're using to shop and it's you know, it's 0:14:25.400 --> 0:14:29.160 an interesting transition. It's happened very quickly, and we're pretty 0:14:29.160 --> 0:14:32.040 excited about it. You know, everything that was in the 0:14:32.080 --> 0:14:35.000 Bloomberg article and has been released day is right in line, 0:14:35.000 --> 0:14:37.280 if not low quite frankly, from what we've seen on 0:14:37.320 --> 0:14:38.360 the ground over here. 0:14:38.480 --> 0:14:40.720 And talking of what you see on the ground and 0:14:40.760 --> 0:14:43.880 do on the ground, you're basically helping perhaps Western companies 0:14:43.960 --> 0:14:48.080 brands access Asian buyers, whether or not it's in China, Japan. 0:14:47.880 --> 0:14:48.720 South Korea. 0:14:48.880 --> 0:14:52.520 How much are they leading with being on doing being 0:14:52.600 --> 0:14:57.600 on these sorts of e commerce and meets content platforms 0:14:57.600 --> 0:14:58.080 at the moment. 0:14:59.480 --> 0:15:01.920 Yeah, the what is that we're dealing with in China? Certainly, 0:15:02.440 --> 0:15:04.440 you know, this isn't new, This has been going on 0:15:04.520 --> 0:15:08.880 for a couple of years now. They're definitely better fitting 0:15:08.880 --> 0:15:11.000 a lot from these growth numbers. And you know, when 0:15:11.000 --> 0:15:13.600 we talk about you know, you mentioned before about you know, 0:15:13.680 --> 0:15:16.680 a week in consumer over here, we really look at 0:15:16.720 --> 0:15:19.560 different categories, right so that you know, large durables and 0:15:19.600 --> 0:15:22.560 things like that that have shown weakness Dullion's really not 0:15:22.680 --> 0:15:25.960 exposed to. So what they're seeing you know, fashion, health 0:15:25.960 --> 0:15:28.080 and wellness and these other categories that you know, the 0:15:28.120 --> 0:15:33.040 younger consumers are really engaging with. You know, Byte Dances 0:15:33.480 --> 0:15:36.640 is really well positioned for that. So these growth numbers 0:15:36.640 --> 0:15:39.000 that we're seeing coming out today again right in line 0:15:39.040 --> 0:15:41.960 with what we're expecting. And you know, next year, I 0:15:41.960 --> 0:15:44.000 think we're going to see this again, if not better. 0:15:44.440 --> 0:15:47.520 Well, sort of ROI is a brand getting when they 0:15:47.520 --> 0:15:51.040 invest in putting content on the platform but also selling 0:15:51.120 --> 0:15:53.720 via it because well they must have to pay in 0:15:53.840 --> 0:15:56.440 up front fee to certain influences they work with for example. 0:15:58.040 --> 0:16:01.760 Yeah, it's definitely a different model for Bye Dance. Bite 0:16:01.800 --> 0:16:04.360 Dance has a really easy platform and a back end 0:16:04.360 --> 0:16:08.000 to engage with influencers. Now you know there's a lot 0:16:08.000 --> 0:16:10.800 of them out there, but they can be charging you know, 0:16:10.880 --> 0:16:15.000 thirty forty fifty percent commissions, which isn't unheard of. 0:16:15.120 --> 0:16:15.640 We go back to. 0:16:15.680 --> 0:16:17.760 Sort of what you know, the big influencers were doing 0:16:17.800 --> 0:16:19.680 on Team Mall a couple of years ago as well, 0:16:19.760 --> 0:16:22.440 or Tabel Live. It was about the same rates. Now 0:16:23.720 --> 0:16:25.840 Byte Dance is getting a much larger percentage of that, 0:16:25.880 --> 0:16:27.680 which you know leads us to believe they're in a 0:16:27.760 --> 0:16:31.320 much better financial shape. But you know, brands are willing 0:16:31.360 --> 0:16:34.360 to pay that because again you can put your product 0:16:34.440 --> 0:16:37.360 or service and again restaurants, dental cleaning, you name it, 0:16:37.720 --> 0:16:40.720 in front of millions of people, very very quickly, and 0:16:40.760 --> 0:16:42.120 you've got to have a little bit of faith in 0:16:42.160 --> 0:16:44.680 your product too that you know that second or third 0:16:44.720 --> 0:16:46.560 purchase they're going to come back to the brand directly. 0:16:46.800 --> 0:16:48.840 We're not going to have to pay that fee. So 0:16:48.920 --> 0:16:51.560 again it doesn't work for large durables which are one off, 0:16:51.720 --> 0:16:55.200 but it does work for cosmetics, nutraceuticals, ath leisure and 0:16:55.280 --> 0:16:57.360 things that can be repeated again and again and again. 0:16:57.800 --> 0:17:00.400 So we're seeing, you know, brands do very very well 0:17:00.920 --> 0:17:02.360 that are engaging in that model. Here. 0:17:03.720 --> 0:17:06.240 Always great, Jacob, to stay up with you, for you 0:17:06.320 --> 0:17:08.280 to give us your time when it's late. I'm ready 0:17:08.320 --> 0:17:10.800 to get your on the ground expertise as well. Jacob 0:17:10.800 --> 0:17:14.160 Cook of WPIC stay well. Meanwhile, coming up, we've got 0:17:14.160 --> 0:17:15.119 some breaking news for you. 0:17:15.520 --> 0:17:16.480 This is as the FTC. 0:17:16.600 --> 0:17:18.880 We understand, of course, the Federal Trade Commission. It's proposing 0:17:18.960 --> 0:17:22.840 changes to children's online privacy protection rules. They're saying that 0:17:22.840 --> 0:17:25.040 they're going to place new restrictions on the use and 0:17:25.080 --> 0:17:28.399 disclosure thereof of children's personal information. This according to a 0:17:28.400 --> 0:17:30.800 statement coming from the FTC. Of course, this is as 0:17:30.840 --> 0:17:34.200 we see ongoing concern about well the access of data 0:17:34.200 --> 0:17:36.920 and children's interpretation and use of some of these social 0:17:36.960 --> 0:17:40.960 media companies and will use more broadly the Internet. Let's 0:17:40.960 --> 0:17:43.000 talk a little bit about well where else we're seeing 0:17:43.000 --> 0:17:45.919 some changes. Alphabet's agreement, for example, to end abuse of 0:17:45.960 --> 0:17:48.680 market power on its Google Play store. 0:17:48.520 --> 0:17:50.000 May come with a catch. 0:17:50.160 --> 0:17:52.480 We're going to delve more into that in a moment. Meanwhile, 0:17:52.520 --> 0:17:54.359 let's just check in on the shares of Zoom today. 0:17:54.520 --> 0:17:57.159 That Wells Fargo's securities analyst, Michael Truran. He's out with 0:17:57.280 --> 0:18:00.000 a recommendation to cut ultimately the price target on Zoo 0:18:00.320 --> 0:18:02.800 is also saying go underweight from equal weight. We're seeing 0:18:02.840 --> 0:18:05.320 a price target now with seventy dollars currently training at 0:18:05.359 --> 0:18:07.359 seventy one forty eight. We're off by one point three percent. 0:18:07.960 --> 0:18:24.040 This is BLOEMBG technology time now for talking tech first up. 0:18:24.320 --> 0:18:27.240 While the FTC has been busy through Federal Trade Commission 0:18:27.280 --> 0:18:29.840 on this part, is also saying that right Aid must 0:18:29.880 --> 0:18:33.359 stop using facial recognition for surveillance. According to the FTC, 0:18:33.520 --> 0:18:36.399 right Aid system generated thousands of false matches off an 0:18:36.440 --> 0:18:40.320 involving race and without notifying customers. Right Aid can't use 0:18:40.359 --> 0:18:42.879 the system for the next five years, which was to 0:18:43.240 --> 0:18:48.000 be allegedly spotting shoplifters. Meanwhile, Chinese internet company Alibibura is 0:18:48.040 --> 0:18:50.720 in the midst of an executive shake up, replacing commerce 0:18:50.760 --> 0:18:53.679 chief Truly Die after a roughly twenty year stint. 0:18:53.840 --> 0:18:56.040 Now I will instead help set up a. 0:18:55.960 --> 0:18:59.960 Holding firm for managing some of Vali Baba's global assets. 0:19:00.080 --> 0:19:03.359 Claims on bankrupt crypto exchange FTX are soaring training at 0:19:03.359 --> 0:19:05.399 fifty sevent to seventy three cents on the dollar depending 0:19:05.400 --> 0:19:07.320 on the size, and this is according to data from 0:19:07.400 --> 0:19:11.960 Cheroki acquisition. Still unclear whethern distributions will actually be made 0:19:12.119 --> 0:19:16.800 or how much customers and creditors will ultimately received. Meanwhile, 0:19:17.080 --> 0:19:19.639 let's talk about well, rather a little amount the customers 0:19:19.680 --> 0:19:21.720 are going to be receiving from the Alphabet case with 0:19:21.840 --> 0:19:24.359 seven hundred million deal, of course, was agreed to alter 0:19:24.720 --> 0:19:27.879 it's Google Play app store, and many are now pointing 0:19:27.880 --> 0:19:30.960 out some of the loopholes around developers' service fees. Let's 0:19:31.000 --> 0:19:34.280 get more context Fremeline News reporter Multi Nayaks here and 0:19:34.760 --> 0:19:37.080 before we get into the fact that a consumer in 0:19:37.160 --> 0:19:41.080 this case would get about two dollars potentially back from 0:19:41.200 --> 0:19:44.679 Google from the seven hundred million dollars settlement. But ultimately 0:19:44.800 --> 0:19:46.880 what people are nippicking here is the fact that they're 0:19:46.880 --> 0:19:48.400 probably not going to have to change their business model 0:19:48.480 --> 0:19:50.360 or that much the amount that they charge a developer. 0:19:51.880 --> 0:19:54.800 That's right. So Google has made a concession here with 0:19:54.880 --> 0:19:58.639 this deal where they are going to allow developers to 0:20:00.080 --> 0:20:03.720 give users access to alternate payment options, like they could 0:20:03.800 --> 0:20:07.320 use paper or anything else, have their own billing system 0:20:07.400 --> 0:20:10.240 instead of going through the Google Pay billing Google Play 0:20:10.240 --> 0:20:14.600 billing system. But you know, they should previously charge thirty percent. 0:20:15.040 --> 0:20:18.399 Now they're offering a discount a four percent to you know, 0:20:18.640 --> 0:20:22.560 twenty six percent. A developer is still paying a hefty 0:20:23.119 --> 0:20:26.199 service fee, and I'm not sure whether you know the 0:20:26.200 --> 0:20:29.280