Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of
Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2: We're alive from New York City. I'm Matt Miller.
Speaker 3: This is Bloomberg Technology coming up. US CEOs, including Tim
Speaker 3: Cook and Cristiano Aimen are in Beijing as Chinese leaders
Speaker 3: prepare for tariffs that exceed expectations. Plus byd Beats, the
Speaker 3: Chinese electric vehicle maker posted more full year revenue than
Speaker 3: Elon Musk's Tesla, even as it sold fewer cars. And
Speaker 3: an exclusive interview with the CEO of Airbus live from
Speaker 3: the Airbus headquarters as the company looks to ramp up
Speaker 3: production of their next generation next generation jets, but first
Speaker 3: real focus on China. That country is hosting its annual
Speaker 3: Development Forum. Top executives are there, including Apple's Tim Cook.
Speaker 3: As we said, Qualcomm's Christiano Aman in attendance with plans
Speaker 3: to meet President Shi Jingping and other leaders. We've heard
Speaker 3: that Chinese Premier Lee Chung said, at this time, I think.
Speaker 2: It's even more important for.
Speaker 3: Each of our countries to open up markets and for
Speaker 3: all of our businesses to share their resources more. This
Speaker 3: is the world braces for US President Donald Trump to
Speaker 3: announce more tariffs on trading partners April second, so about
Speaker 3: a week from now. Bloomberg's Mike Shepherd joins us for
Speaker 3: more in Bloomberg, it seems like traders on Wall Street
Speaker 3: more optimistic than leaders in Beijing. Why do you think
Speaker 3: there's that mismatch here.
Speaker 4: Well, it could be that some of what we are
Speaker 4: hearing here in Washington hasn't quite filtered back to audiences
Speaker 4: there in the Chinese capitol. But there is also the
Speaker 4: need for leaders in China to tell the public, to
Speaker 4: tell businesses there to brace for the worst. And it
Speaker 4: is also a way for them to say, hey, look,
Speaker 4: we have to get our act together domestically with our
Speaker 4: economy as well, especially if the worst could be coming.
Speaker 4: And they also know that even if traders here and
Speaker 4: journalists like ourselves are hearing that way, maybe this time around,
Speaker 4: for the first round of this April second tariff, it
Speaker 4: won't be quite so bad. Things are still very fluid,
Speaker 4: and we even heard from a White House official this morning,
Speaker 4: our colleague Josh Wingrove, who's great scoop over the weekend
Speaker 4: added to some of that reporting. Maybe things will be
Speaker 4: a little bit easier. You heard from a White House
Speaker 4: official who said, look, things are not decided yet. They're
Speaker 4: still pretty fluid. May see, those sectoral tariffs people are
Speaker 4: worried about have been worried about. Those are the ones
Speaker 4: on chips and on autos and on drugs that may
Speaker 4: have been put into play earlier by Trump may have
Speaker 4: been taken off the table by officials for now. But
Speaker 4: Josh is reporting his signaling that, you know, it is
Speaker 4: not a done deal yet.
Speaker 2: So Mike, what are we then expecting?
Speaker 3: I mean, I thought the idea was that whatever you charge.
Speaker 2: Us, we're gonna charge you.
Speaker 3: So if Europe has ten percent tariffs on autos and
Speaker 3: we only have two and a half percent tariffs on autos,
Speaker 3: we're gonna raise our tariff to that level. Same is
Speaker 3: true on you know, dairy products or meats.
Speaker 2: Really across the board.
Speaker 3: I thought the idea that President Trump was just gonna
Speaker 3: charge them exactly what they charge us, and that keeps
Speaker 3: it in his in his mind.
Speaker 2: Fair well, you know, you're right.
Speaker 4: He had been talking about tariffs really in kind of
Speaker 4: two lanes. One is the idea of reciprocal tariffs. We
Speaker 4: charge you with you charge us just as you kind
Speaker 4: of laid out, depending on the sector of the product.
Speaker 4: No matter what, they will find a way to kind
Speaker 4: of even things out the way the President likes to
Speaker 4: talk about it, to keep it fair in his view.
Speaker 4: But they had also talked about measures aimed at whole
Speaker 4: sectors and that did include computer chips, that did include
Speaker 4: pharmaceuticals and autos as well, Yet the planning for that
Speaker 4: was not as clear what we have gotten signals though
Speaker 4: on the reciprocal tariffs front.
Speaker 2: It's interesting.
Speaker 4: We've also heard from Treasury Secretary Scott Besson who tried
Speaker 4: to narrow perhaps the playing field of countries and goods
Speaker 4: and categories.
Speaker 2: That might be targeted.
Speaker 4: Last week, he was talking about the fifteen worst defenders
Speaker 4: for lack of a better word, where they would want
Speaker 4: to concentrate their energies first in terms of crafting these
Speaker 4: reciprocal tariffs.
Speaker 2: And of course, as we saw this.
Speaker 4: Morning with Trump announcing tariffs on other countries who buy
Speaker 4: oil and gas from Venezuela, really anything could be in
Speaker 4: play at any moment, so we really are sort of
Speaker 4: waiting a little bit anxiously or nervously for whatever comes
Speaker 4: out on April second, and really trying to report that
Speaker 4: out ahead of time.
Speaker 3: Shep thanks so much for joining us, Mike Shepard there
Speaker 3: from our Washington d C Bureau.
Speaker 2: Now check this out.
Speaker 3: BYD sales surpassed the one hundred billion dollar mark in
Speaker 3: twenty twenty four, actually over one hundred and seven billion dollars,
Speaker 3: leap brogging Elon Musk's Tesla on revenue. But the shares,
Speaker 3: as we saw, are not gaining quite as much as
Speaker 3: Tesla's up about six percent.
Speaker 2: I guess it's better than a stick in the eye.
Speaker 3: But Tesla's up ten percent today. It's biggest gained since
Speaker 3: November eleventh. Let's get out to London right now and
Speaker 3: talk with our cars. Are Bloomberg's Craig Trudel. So, Craig,
Speaker 3: what is BYD doing differently than Tesla?
Speaker 5: I think they've really had this very consistent playbook of
Speaker 5: we're going to give consumers a really broad range of vehicles.
Speaker 5: We're not going to be dogmatic about, you know, battery
Speaker 5: electric vehicles only. We're going to offer plug in hybrids
Speaker 5: as well. I think the fact that you know, we've
Speaker 5: seen as a sort of global trend, even in places
Speaker 5: like China where you know, battery electric vehicles, uh, you know,
Speaker 5: it's many multiples of what gets sold anywhere else in
Speaker 5: the world. Even there, we're seeing some slowdown in terms
Speaker 5: of the take up of fully electric vehicles, and we're
Speaker 5: seeing a real acceleration in demand for plug in hybrids,
Speaker 5: and and BYD has has been on the sort of
Speaker 5: leading edge there, you know, offering offering extended range electric vehicles,
Speaker 5: which you know, if you think back to sort of
Speaker 5: the Chevy Vault that General Motors brought out more than
Speaker 5: a decade ago, it's it's you know, sort of similar
Speaker 5: with that kind of technology where you know, an engine
Speaker 5: is never directly powering the wheels, and you know, their
Speaker 5: ability to offer you know, both plug in and hybrid
Speaker 5: and plug in hybrid and full electric vehicles at extremely
Speaker 5: affordable prices has allowed them to achieve scale that you know,
Speaker 5: Tesla can only really dream of at this point.
Speaker 3: I know Jim Farley for one, is pumped about those
Speaker 3: e revs. So having an engine on board that simply
Speaker 3: powers the battery and doesn't power the wheels. We'll start
Speaker 3: seeing those come out of Detroit soon. I think as
Speaker 3: Dodge is going to put out a truck, an E
Speaker 3: Rev truck. Craig, what about the money being raised in China.
Speaker 3: I noticed that byd has raised more than five billion
Speaker 3: dollars in the secondary offering. I see that shall Me
Speaker 3: is looking to raise more than five billion dollars in
Speaker 3: the secondary offering.
Speaker 2: I mean, coming from a New York.
Speaker 3: Perspective where IPOs are not on hold but fairly slow,
Speaker 3: Hong Kong looks like it's absolutely on fire. This just
Speaker 3: helps the Communist Party to power ahead on evs in
Speaker 3: a way that it's not possible for us to do
Speaker 3: here in America.
Speaker 5: I think that absolutely the right read.
Speaker 6: I mean, we we.
Speaker 5: Did see, you know, a few years back, Tesla rays
Speaker 5: at an incredible rate, you know, when they were really
Speaker 5: sort of getting their momentum with the Model three, in
Speaker 5: the Model y you know, I think Tesla went from
Speaker 5: being this this company that was really struggling to sort
Speaker 5: of stand on its own two legs, and they really
Speaker 5: sort of achieved escape velocity, and in the process of
Speaker 5: doing so, tapped Wall Street for an awful lot of money.
Speaker 5: We also did see, you know, a real sort of
Speaker 5: active you know, in environment for you know when you
Speaker 5: think back to the likes of Lucid through this back
Speaker 5: market or Rivan through an I p O. So I
Speaker 5: do think that we've we've seen we we did sort
Speaker 5: of go through this spurt of activity in the US.
Speaker 5: But to your point, we're seeing this with John Me,
Speaker 5: We're seeing this with b y D. I think I
Speaker 5: would add to that even c at L as well
Speaker 5: looking to do a second offering in Asia. So we're
Speaker 5: we're seeing a real acceleration of these your players in
Speaker 5: that space, raising an awful lot of money, even you
Speaker 5: know by terms of big automotive companies that are very
Speaker 5: cash hungry.
Speaker 2: Craig, great to get some time.
Speaker 3: Thanks so much for joining us. Bloomberg's Craig Trudell. Our
Speaker 3: cars are his covered cars from Tokyo, from London and
Speaker 3: from Detroit. Coming up, The CEO of identity protection app
Speaker 3: Aura and its investor Jeff Katzenberg joined us to talk
Speaker 3: about Aura's new AI powered tools aimed at protecting youth
Speaker 3: mental health. By the way, I'm also watching shares of SAP,
Speaker 3: the German software developer in trading today right now up
Speaker 3: one and a half percent and right now the largest
Speaker 3: company in Europe.
Speaker 2: By market Kath. With this growth, this is bloomberg.
Speaker 3: As parents look to keep their kids safe online. Identity
Speaker 3: protection firm Aura has released new AI tools to track
Speaker 3: youth mental health that comes on the heels of the
Speaker 3: startups one hundred and forty million dollar Series G funding round.
Speaker 3: Aura's CEO Hari Ravi Chandron, and the company's biggest investor,
Speaker 3: Jeffrey Katzenberg, managing partner at Winderco, are here with me,
Speaker 3: and I appreciate you guys joining me on this topic,
Speaker 3: which you know, I think finally is getting the attention
Speaker 3: that it deserves, the damage that social media and technology
Speaker 3: due to the mental health of our children.
Speaker 2: Jeff, let me start with you and.
Speaker 3: Ask what brought you to this investment and what sort
Speaker 3: of put you on this put you on this path?
Speaker 6: Love it?
Speaker 7: So.
Speaker 8: I spent forty years in the media and entertainment business
Speaker 8: at the Walt Disney Studios and DreamWorks, and every day
Speaker 8: got up and was in the world of bringing to parents, mom,
Speaker 8: dads and kids safe content and the appreciation of you
Speaker 8: know what that means. And today keeping our kids safe
Speaker 8: has actually never been more challenging or more complicated because
Speaker 8: of these devices and the online lives that we have.
Speaker 8: When I parented my kids, there were three things I
Speaker 8: wanted to know. Where are they, what are they doing?
Speaker 2: And who are they with?
Speaker 8: And today they could be sitting in your kid can
Speaker 8: be sitting across you at a kitchen table with a
Speaker 8: phone in their hand. You cannot answer those three questions.
Speaker 8: As you said, there is actually just a growing epidemic
Speaker 8: of how damaged and damaging we are doing to our
Speaker 8: kids today, this generation. It's extraordinary. And I'll read you
Speaker 8: a few stats just to frame how big the problem is.
Speaker 8: So twenty percent of adolescents report low self esteem, fifty
Speaker 8: two percent have experienced or our experience an eating disorder,
Speaker 8: seventy percent of teens say anxiety and depression is a
Speaker 8: major part among their peers, and a shocking twenty five
Speaker 8: percent have ideation around suicide. So this is just we're
Speaker 8: destroying our kids. And what Hari has done as the
Speaker 8: founder of this is through his own personal experience, which
Speaker 8: he should tell you about dealing with his own family.
Speaker 8: Got on this mission two years ago to say he
Speaker 8: built a company in which he has brought security for
Speaker 8: families online.
Speaker 2: Now he's going to bring safety.
Speaker 3: So how are you tell us about your experiences before
Speaker 3: starting this company, and then how are you solving the problem?
Speaker 9: Yeah, no, I'm happy to I have four kids, and
Speaker 9: so one of my kids about to your ago, was
Speaker 9: going through a really tough patch, whether feeling depressed, feeling down,
Speaker 9: some negative coping strategies, which was very frightening to us
Speaker 9: as a family. And so leading up to that, you know,
Speaker 9: we were pretty tight knit family. You know, we spend
Speaker 9: time together. Ask her how she's doing, she says, Oh,
Speaker 9: everything's fine. And then as we're kind of going through
Speaker 9: the recovery cycle, we asked.
Speaker 2: Her how she's doing.
Speaker 9: She says, I'm doing fine, and so as a parent,
Speaker 9: you wonder, well she's saying the same thing, is she
Speaker 9: actually find or not right? And so then we started
Speaker 9: looking around for tools because the one thing I do
Speaker 9: I do know during that journey, when we were super
Speaker 9: privacy or never gave you know, never spend time on
Speaker 9: the kids device or anything like that, during the journey,
Speaker 9: we did spend some time on the device and there
Speaker 9: were things there that I wish we'd kind of found
Speaker 9: earlier because we might have been able to help her sooner.
Speaker 9: And there really weren't any tools there, just wasn't anything
Speaker 9: to actually go do this in the systematic way, and
Speaker 9: we already were helping a lot of families with content problems,
Speaker 9: etcetera that their kids had. So this is a natural
Speaker 9: entree for us, and frankly is a tool. I need
Speaker 9: it for my own kids. So I figured there's lots
Speaker 9: of lots of families that can also use the same
Speaker 9: technology as well.
Speaker 2: Jeff, how do you deal with this in your family?
Speaker 3: I mean, we've heard from recently Kate Winslet who said
Speaker 3: her method is just to ban all social media for
Speaker 3: her children.
Speaker 8: Can't you cannot. It's an impractical thing. And so what
Speaker 8: you need to do as a parent is you need tools.
Speaker 8: You need insights in order to be able to navigate
Speaker 8: and help your kids navigate through these.
Speaker 2: Challenges.
Speaker 8: And what you need for a twelve year old or
Speaker 8: thirteen year old is quite different from what you need
Speaker 8: for a sixteen year old or a seventeen year old.
Speaker 8: And what Aura has created and is delivering is not spying.
Speaker 2: It's about giving.
Speaker 8: You the parent insights, giving you enough knowledge you can
Speaker 8: still give your kids a lot of leeway and a
Speaker 8: lot of privacy.
Speaker 2: We're not reading you as a.
Speaker 8: Parent, are not going to read their text, because if
Speaker 8: you do that, they're going to find a way to
Speaker 8: get off this and get around it. In it they
Speaker 8: you know, they actually want some help, They want some guidance.
Speaker 8: We hear that from you know, our beta, from the
Speaker 8: kids that are on it today. And so the analogy
Speaker 8: I would give you is is that when your child
Speaker 8: turns sixteen years old and gets a driver's license, you
Speaker 8: don't send them out on a you know, on a
Speaker 8: highway doing sixty five miles an hour without practice, coaching
Speaker 8: and some experience in time. Why would this be any
Speaker 8: other different?
Speaker 10: Why?
Speaker 6: Why should this device? Why should you.
Speaker 8: Be out there in that world, in the wilderness with
Speaker 8: no guidance, no help, And parents right now are really
Speaker 8: really struggling with this. And it's why, frankly, you know,
Speaker 8: I'm so proud to be on this mission with Hari,
Speaker 8: because I think he's created something that's gone from a
Speaker 8: nice to have to something that's actually essential.
Speaker 2: We hear it all the time. Parents are just desperate
Speaker 2: for help. Is it an arms race?
Speaker 11: Hari?
Speaker 3: I mean, have you found a solution that will work
Speaker 3: forever or do you have to continually develop those tools?
Speaker 3: As you know, social media continuating.
Speaker 9: If they're always innovative innovation run. I mean, you're continuously
Speaker 9: trying to stay out in front because people do catch
Speaker 9: up from behind, both in terms of you know, social
Speaker 9: media companies changing strategy, et cetera, but also because the
Speaker 9: competitive set, especially with AI revolution, building things have been
Speaker 9: easier than ever before. So you have to build modes
Speaker 9: and go to market avenues in other areas beyond just technology.
Speaker 9: You have to keep evolving the tech as well and
Speaker 9: finding more and more use cases. But you have to
Speaker 9: do a lot more than that anymore, especially with AI
Speaker 9: making things so ubiquitous.
Speaker 3: Can you work with other social media companies? I mean,
Speaker 3: Jeffrey Katzenberg, you must know some of these executives who
Speaker 3: run you know, Facebook or Twitter. Can't they be helping
Speaker 3: as well? It's a problem that they should be aware of.
Speaker 8: Maybe they can, but they have their missions they're on
Speaker 8: And I want to be clear, not all social media
Speaker 8: is bad, right these there's been incredible, incredible values that
Speaker 8: have been created in terms of community and communications and
Speaker 8: knowledge and just extraordinary access that we have in this
Speaker 8: new generation has with these tools in it.
Speaker 2: And so this is a byproduct of it.
Speaker 8: The rabbit holes, the deep dark rabbit holes that you know,
Speaker 8: one can go down or get sucked down into in it.
Speaker 8: And we're not here pointing fingers at anybody. What we
Speaker 8: are doing is is we're creating a solution. And frankly,
Speaker 8: I would think those companies would be.
Speaker 2: Thrilled with this solution.
Speaker 8: And you know, it comes out of these things you use.
Speaker 8: In my opinion and certainly my experience matters, they come
Speaker 8: out of a person with enough technical and experience and
Speaker 8: knowledge in an area who suddenly comes upon a mission
Speaker 8: and hare from his own personal experience with his own family.
Speaker 8: Has been mission driven for the less past two years,
Speaker 8: and I think that's what has created something that is
Speaker 8: so invaluable and practical and of the moment in time.
Speaker 3: Well, I appreciate you both coming by to talk about this.
Speaker 3: It's an issue that Bloomberg is focused on as well,
Speaker 3: so very important too, I think all of us, certainly
Speaker 3: as parents. Thanks very much, Jeffrey Katzenberg and Hari Robi
Speaker 3: Chandron of Aura. Now I have breaking news on the
Speaker 3: Bloomberg right now.
Speaker 2: Shall me? Is said poised raise.
Speaker 3: Five and a half billion dollars in an upsized share placement.
Speaker 3: The last we spoke, they were looking to raise five
Speaker 3: point three billion dollars in this secondary that was fully subscribed.
Speaker 2: It looks like it may have been over.
Speaker 3: Subscribed and now they could raise more. Nonetheless, shall me
Speaker 3: shares intra day or down one point three percent? Take
Speaker 3: a look at Strategy and Bitcoin both rising today.
Speaker 2: When I say Strategy, of.
Speaker 3: Course, I mean Michael Sailor's rebranded micro Strategy bought five
Speaker 3: hundred and eighty four point one million dollars a bitcoin
Speaker 3: after the company raised more than seven hundred million last
Speaker 3: week from the sale of perpetual stock. For more, Bloomberg's
Speaker 3: David Pan joins us now in studio.
Speaker 2: David, I guess.
Speaker 3: It's semi interesting, right, at least in terms of the
Speaker 3: way they raise money.
Speaker 2: What is perpetual stock?
Speaker 12: So it's like a debt like capital raise, you know,
Speaker 12: it's a little bit different from the vanilla convertible bond
Speaker 12: raises before. I think it's just the latest the sign
Speaker 12: of strategiest effort to tap into all different kinds of
Speaker 12: levers to raise capital by even more pet coin from
Speaker 12: now on.
Speaker 3: So, and that's all that Strategy basically does. Right, they
Speaker 3: have a small business on the side. What is it
Speaker 3: like a software business.
Speaker 12: Right is the enterprised software business used by a variety
Speaker 12: of companies including McDonald's. You know, had a more meaningful
Speaker 12: significant cash flow before, but compared to the sheer size
Speaker 12: the bigcoin holding and and you know the games from
Speaker 12: the bitcoin holdings and now it's less and less significant
Speaker 12: on the balance sheet.
Speaker 3: Yeah, it seems to me this company is all about
Speaker 3: the bitcoin holdings.
Speaker 2: Bitcoin is up today.
Speaker 3: It looks like just with the risk on mood of
Speaker 3: the market, has there been any reversal of that correlation
Speaker 3: or is this just how bitcoin trades.
Speaker 12: I think typically when we're seeing you know, like bitcoin
Speaker 12: going down, there's there tends to be stronger correlation with
Speaker 12: the stock market.
Speaker 2: That's that's just.
Speaker 12: Historical trends over there. So we are seeing actually, you know,
Speaker 12: macroeconomic factors are playing way more important role in terms
Speaker 12: of bitcoin prices. And you know, despite a lot of
Speaker 12: the positive events in the past few weeks like Crypto
Speaker 12: Summit and staplecoin bit and those kind of events haven't
Speaker 12: been having any big positive impact on the bitcoin priceis
Speaker 12: you know, compared to the macro micros If.
Speaker 3: The government doesn't actually go out and buy new bitcoin
Speaker 3: for a strategic reserve. Then that's not as positive as
Speaker 3: maybe it would have been before. David, thanks so much
Speaker 3: for joining us. Bloomberg's David Pan, Welcome back to Bloomberg Technology.
Speaker 3: I'm Matt Miller in New York taking a look now
Speaker 3: at a fund using an AI powered model, which is
Speaker 3: warning against buying AI stocks. The fund has returned twenty
Speaker 3: six percent annually in the past five years.
Speaker 2: So maybe one you want to listen to.
Speaker 3: Bloomberg's Isabelle Lee has that story.
Speaker 2: Isabelle, what are we talking about?
Speaker 13: Hey, Matt, We're looking at a fund that's overseen by
Speaker 13: Danielle Maher. So it has outperformed most of its peers
Speaker 13: nine nine percent in the past five years, and even
Speaker 13: it's benchmark Russell three thousand. So it's underwit a lot
Speaker 13: of the big tech companies because he said that there's
Speaker 13: still volatile and even the two trillion dollar sell off
Speaker 13: we saw the past weeks haven't made these companies cheap.
Speaker 13: He still finds them expensive, he still finds them having
Speaker 13: frothy valuation, and he still finds them volatile in the
Speaker 13: past weeks and in the years to come. And he
Speaker 13: said that he is preferring other sectors his sector neutral.
Speaker 13: He has around one to seventy security selections. And the
Speaker 13: thing about his fund is it's process. It has a
Speaker 13: decision tree analysis, which I just recently learned about, and
Speaker 13: it mimics human thinking. So that's really what sets his
Speaker 13: fund apart.
Speaker 2: So why doesn't he like tech stocks?
Speaker 3: Why doesn't he like AI which has delivered such fantastic returns,
Speaker 3: certainly on the megacap side over the past couple of years,
Speaker 3: he said.
Speaker 13: Are volatile and they have frothy valuations. And the thing
Speaker 13: is he's still invested in them, but he's just underweight.
Speaker 13: And interestingly, he said, he calls it quote risk management.
Speaker 13: We know that active managers have really outperformed the passive
Speaker 13: investments in the past few years, and it's really hard
Speaker 13: to beat the Magnificent seven. But it's interesting to see
Speaker 13: funds like these because he still outperforms even if he's
Speaker 13: not just all in on this big text. He also
Speaker 13: said that he doesn't really try to follow fundamental news,
Speaker 13: even with this whole headline driven markets, with tariffs and everything.
Speaker 13: He said he doesn't want to have any binary outcome.
Speaker 13: What he's just interested is in the fundamentals of the stock,
Speaker 13: not anything we hear in the headlines, and that's why
Speaker 13: he's underweight all these megacap tech stocks.
Speaker 2: Does he have any discretion in this fund?
Speaker 3: I mean, it's not set parameters from a program.
Speaker 13: It's a purely quant fund. It uses decision tree analysis.
Speaker 13: So the way it works is there's a branch, so
Speaker 13: you answer yes or no. You use factors like momentum,
Speaker 13: economic mode. And then the interesting thing about this is
Speaker 13: most quant funds have like a black box system and
Speaker 13: you really don't know how to spit out that certain stock.
Speaker 13: With him, you can see the rationale because of the
Speaker 13: factor based This isn't model, and he really almost never
Speaker 13: tries to insert his discretion other than the fact that
Speaker 13: if there's like a wrong input when it comes to data.
Speaker 13: But then other than that, he follows the quant model
Speaker 13: to heart. And he's been doing it the past twenty years, all.
Speaker 3: Right, So he does stick to those parameters and it
Speaker 3: does not hurt returns. Apparently, Isabelle thanks very much, Bloomberg's
Speaker 3: Isabelle Lee.
Speaker 2: Now.
Speaker 3: Startup acquisitions have kicked off twenty twenty five with a boom,
Speaker 3: as evidenced by last week's thirty two billion dollar Google
Speaker 3: deal for cybersecurity firm WIZ. Here with more on the
Speaker 3: M and A landscape is Bloomberg's Katie Roof. She joins
Speaker 3: us now here in studio at seven thirty one Lex.
Speaker 3: Good to have you on this side of the continent.
Speaker 3: So M and A overall has been kind of a
Speaker 3: snooze this year compared to what we were expecting. But
Speaker 3: in your corner of the universe, which is venture capital
Speaker 3: and startups, it's been on a tear.
Speaker 2: Yeah, exactly.
Speaker 11: So we've set a record for dollars, partly aided by WIZ,
Speaker 11: but we've actually already tied the quarterly record in terms
Speaker 11: of well, we've had eleven billion dollar plus sales startup sales,
Speaker 11: and so.
Speaker 2: We've got a week left. And part of this is.
Speaker 11: Driven by perception that Trump's will be better for regulation.
Speaker 11: Obviously He's you know, there have been mixed comments on that,
Speaker 11: but that did play a role with WIZ. They turned
Speaker 11: down the offer from Google last year because they were
Speaker 11: worried about the administration blocking deals and so they're hoping
Speaker 11: that this time will be better. But there's also other factors.
Speaker 11: There's you know, also market volatility, partly due to the
Speaker 11: tariffs actually may have played a role.
Speaker 2: According to one banker.
Speaker 11: I quoted Dave Chen in the story and he oversees
Speaker 11: Morgan Stanley's tech banking. He said that startups are saying
Speaker 11: that the volatility makes them more likely to sell because
Speaker 11: they're worried about IPO.
Speaker 2: Yeah, volatility is another word for drops. I've learned.
Speaker 3: We've seen a correction, obviously, not only in the tech
Speaker 3: sector but in the broader market. Does this maybe mark
Speaker 3: a bottom? Could we see a turnaround from this point?
Speaker 11: Well, it's you know, there's a lot of things at
Speaker 11: play here. So I think in terms of IPOs, we're
Speaker 11: looking at maybe up to eight venture backed IPOs and
Speaker 11: Q two, which is more than we've seen in a
Speaker 11: few years. But right now there's a thousand unicorns, there's
Speaker 11: a thousand venture back private companies that have yet to exit,
Speaker 11: so they need to either ipo or get acquired. And
Speaker 11: so even with the eleven startup sales and maybe the
Speaker 11: eight venture backed IPOs coming up, we're not even close
Speaker 11: to what we need for liquidity in the ecosystem.
Speaker 3: So I guess that means this is going to continue
Speaker 3: or we're going to continue to see record M and
Speaker 3: A in startups.
Speaker 11: Possibly, I think, especially if they feel that the bar
Speaker 11: has gotten pretty high to IPO and that, you know,
Speaker 11: the market conditions aren't perfect for IPO the way they
Speaker 11: were in twenty twenty one, we may see, you know,
Speaker 11: some taking that bird in hand, even if it wasn't
Speaker 11: their dream price.
Speaker 2: All right, Katie, thanks very much.
Speaker 3: Bloomberg's Katie Roof talking to us about startup m and
Speaker 3: a coming up an exclusive conversation with the CEO of Airbus.
Speaker 2: Key On Fury joins us. This is Bloomberg.
Speaker 7: Welcome back to Bloomberg Technology. I'm Guy Johnson, taking over
Speaker 7: from Matt Miller for the next few minutes and taking
Speaker 7: you here to the air Bus headquarters in to Lose, France,
Speaker 7: where cutting out to technology is a day to day activity.
Speaker 7: We're at the Airbus Summit where we're discussing everything from
Speaker 7: sustainability to hydrogen to what happens with the next generation
Speaker 7: of aircraft and the technology that is going to go
Speaker 7: into them. And I have the great pleasure of being
Speaker 7: joined here by Gilm Fourie, the CEO of Airbus. Gilm
Speaker 7: fantastic to be with you here at this summit at
Speaker 7: the Airbus is home here in to lose the summit.
Speaker 7: We're asked at the moment that the big focus is sustainability.
Speaker 7: A lot of technology is currently being pushed into this
Speaker 7: space as we try and make aviation technology. The big
Speaker 7: technology that we're talking about is sustainable aviation fuel. That's
Speaker 7: going to do a lot of the heavy lifting, but
Speaker 7: hydrogen and all kinds of other technologies beckon in the future.
Speaker 6: The target we have right now is.
Speaker 7: To make aviation net zero carbon by twy fifty. Is
Speaker 7: that still achievable?
Speaker 14: It remains the target and there are plenty of reasons
Speaker 14: to believe that it can be achieved.
Speaker 6: There are also some challenges.
Speaker 14: One of the reasons we have the submit the ABBE
Speaker 14: summit is to discuss those topics to understand better as
Speaker 14: the problem, what goes well, what needs to be done
Speaker 14: Differently at ABUSWI remain committed to the twenty to fifty
Speaker 14: objective of carbon neutrality. That's what the industry has agreed together,
Speaker 14: and tomorrow we will be sharing a lot of good
Speaker 14: news on the progress. We know that on the sustainableivation
Speaker 14: fuel that's a challenge and we need to do more
Speaker 14: work on it.
Speaker 7: Is it going to be possible? With Donald Trump in
Speaker 7: the White House. He doesn't seem to see the United
Speaker 7: States as the forefront of green technology. In fact, is
Speaker 7: going in the opposite direction. Can twenty fifty be achieved
Speaker 7: with Donald Trump in the White House?
Speaker 14: Well, the progress we need to make to decarbonize aviation
Speaker 14: by twenty to fifty relies on different pillars. One of
Speaker 14: them is the planes, the plane themselves, that's what we're doing.
Speaker 14: And for planes, competitiveness means fuel efficiency and fuel efficiency
Speaker 14: means sustainability. So the two objective are aline. I say,
Speaker 14: economy and ecology are aline. So we'll keep going and
Speaker 14: airlines will continue to buy, preferably planes that burn less fuel,
Speaker 14: whatever the fuel. For the development of stuff, it's a
Speaker 14: bigger challenge. It's important to have unity. We need a
Speaker 14: global level playing field on saff and obviously we need
Speaker 14: to understand better what did we mean for the US
Speaker 14: and to what extent the others will keep going at
Speaker 14: the same pace.
Speaker 7: What should you go? The line?
Speaker 14: Well, anyway, we see different dynamics in different places of
Speaker 14: the world. Europe has gone quite alone on the feit
Speaker 14: for fifty five, putting mandates on the use of staff.
Speaker 6: It's a different way.
Speaker 14: It was already a different way with the previous US
Speaker 14: administration with IRA and subsidies for staff, and China is
Speaker 14: going also another way.
Speaker 6: That's one of the problems. We need this to be unified.
Speaker 7: It just came back from China. What did you say
Speaker 7: that what kind of technology are they going to once
Speaker 7: again leap frog in the way that we've seen maybe
Speaker 7: them doing in electric cars.
Speaker 14: I think they're really serious on the transition. They're really
Speaker 14: serious on decurbanized energy, on the use of solar, of wind.
Speaker 6: Of nuclear. They grow. I think half or.
Speaker 14: Two thirds of the additional capacity of decurbanized energy last
Speaker 14: year was coming from China. So they're really moving forward at.
Speaker 6: The right pace.
Speaker 14: And yes, there is a likelihood that they would go
Speaker 14: faster than others on decurbonized technologies with the risk that
Speaker 14: we would see in adiation in fuels what we see
Speaker 14: today in electric car. So we're really taking themselves, but
Speaker 14: there's also a partner we can rely on for the
Speaker 14: development of stuff.
Speaker 7: Let's talk a little bit about what is happening here
Speaker 7: in Europe. It seems at the moment security is more
Speaker 7: important to Europe than sustainability. Do you see it that way?
Speaker 7: Is that how it is developing.
Speaker 6: I don't think it's more important. I think it's a precondition.
Speaker 14: You need security to have prosperity, and you need prosperity
Speaker 14: to fund your climate transition and your deg urbanization. So
Speaker 14: security comes first, and that's what we are looking and
Speaker 14: what we're seeing in Europe. I don't think there is
Speaker 14: a competition between the different investments, at least at the moment,
Speaker 14: at least for ABBUS. We have different businesses, we have
Speaker 14: a strong balance sheet to fund the different investments. But yes,
Speaker 14: there is more that we'll go to space to defense
Speaker 14: than it was in the past, and that's an opportunity
Speaker 14: for us because we think it's important for the security
Speaker 14: of Europe.
Speaker 7: You talk about space. One of the key pieces of
Speaker 7: technology that Europe is relying on at the moment has
Speaker 7: been used heavily in Ukraine is obviously STARLK. How quickly
Speaker 7: can Europe replicate something similar to what we see with Starlin.
Speaker 14: Starlink is clearly a breakthrough. The constellation is already large
Speaker 14: in the air. We have consultation in Europe that are
Speaker 14: flying already, but they are much smaller, so we need
Speaker 14: a demand at scale. We need countries to come together
Speaker 14: with a common need and we need the industry to
Speaker 14: come together to supply. So your hope needs scale of technologies.
Speaker 14: We have very similar technologies, but it needs to go into.
Speaker 6: A project at scale. How quickly can you do well,
Speaker 6: It's going to take a bit of time. We're moving
Speaker 6: as fast as we can.
Speaker 14: We have indicated that we are in discussions with Leonardo
Speaker 14: or friends from Leonardo and Tales to create a joint
Speaker 14: company for satellite manufacturing.
Speaker 7: Can I think about that as an air bus of space?
Speaker 7: Is that what we look we're talking about.
Speaker 6: It is an ambus of space.
Speaker 14: It is a joint venture between companies, so that's probably
Speaker 14: a bit different. But that's creating the scale in Europe
Speaker 14: to be able to be competitive on a global scale.
Speaker 7: Can you do the same thing in defense?
Speaker 6: It has to be done.
Speaker 14: It's going to be probably more difficult because the sovereignty
Speaker 14: for security and defense it's at the level of nations
Speaker 14: of countries and we need countries to come together with
Speaker 14: common projects to create that scale and then having the
Speaker 14: industry serving these project that scale. But we're too fragmented
Speaker 14: in defense in Europe. That's very clearly written in the
Speaker 14: Drugie Report. There's something that is now acknowledged. We need
Speaker 14: to find these solutions.
Speaker 7: So in terms of how you're thinking about how you
Speaker 7: develop airbus from here, over the last few years it
Speaker 7: has been civil focused. Do you see space defense becoming
Speaker 7: similar scale arms of air bus? People have often talked
Speaker 7: about defense big subscale at airbus. Is that going to
Speaker 7: be the future? Is the defense arm going to be subscale?
Speaker 7: Is space going to be subscale? How quickly can you
Speaker 7: get it to scale? And will it be of something
Speaker 7: similar to what we see behind us in the civil side.
Speaker 14: We are not only an airbus in commercial we're also
Speaker 14: an abbus in defense and in helicopters. We have created
Speaker 14: the scaling helicopters already in the past and we are
Speaker 14: the number one helicopter manufacturer in the world by a
Speaker 14: turnover and by number of helicopters. So that's something we
Speaker 14: are doing in other areas of business than commercial.
Speaker 6: Yes, we are also an airbus in.
Speaker 14: Defense with projects like the Eurofighter, with project like the
Speaker 14: afourn of them where European countries partner together to create
Speaker 14: product that is the best.
Speaker 6: In the world at the moment.
Speaker 14: But we need more of this, and it is the
Speaker 14: DNA of airbus to bring collaboration, to bring partnerships, and
Speaker 14: to create a project that at the right scale and
Speaker 14: therefore the right scale of investments and therefore the right competitiveness.
Speaker 7: Do you think Donald Trump is bringing Europe together? Do
Speaker 7: you think it's gonna euro realise on the crisis? Is
Speaker 7: this a big enough crisis to bring up?
Speaker 14: Europe is making progress through prises. We are challenged by
Speaker 14: a number of things changing in the world. The fact
Speaker 14: that Europe needs to take security and defense in its
Speaker 14: own hands. It's something that in my view really makes sense,
Speaker 14: and that's what Europe.
Speaker 6: Is doing under a number of pressure points. Ukraine is
Speaker 6: one of them.
Speaker 14: What's happening in Ukraine and also what Donald trepoints to
Speaker 14: achieve is another question point on Europe to take its
Speaker 14: destiny in its hands.
Speaker 7: Donal Trump talks about his favorite word has been terrorists.
Speaker 7: What do you expect in terms of terrors? How already
Speaker 7: is it impacting? Airbus? The aircraft, indeed, the eight three
Speaker 7: twenty one XL comes from around the world. We were
Speaker 7: joking earlier. The nose comes from France, the engines come
Speaker 7: from America and France. The aircraft is an aircraft of
Speaker 7: the world. But that creates vulnerability. How are you thinking
Speaker 7: about tars what is the impact being already?
Speaker 14: Well, that's an important point for industry. We add tariffs
Speaker 14: on aircraft four to five years ago between the US
Speaker 14: and Europe and has been a lose lose and therefore
Speaker 14: we had a ceasefire.
Speaker 6: In twenty twenty one.
Speaker 14: And I think this experience has been interesting in showing
Speaker 14: that for a sort of North Atlantic ecosystem, both sides
Speaker 14: of the Atlantic does only lose lose in putting tariffs.
Speaker 14: We have not heard about tariffs on aviation at the moment.
Speaker 14: On aerospace, I think that's repairing. I think that's a
Speaker 14: good sign. There's nothing more I would say really to
Speaker 14: prepare them to communicate to Exchange to explain we have
Speaker 14: a lot of infrastructure and manufacturing capabilities final assembly line
Speaker 14: in the US. We're procuring from the US selling to
Speaker 14: the US, and the US manufacturers are doing the same
Speaker 14: with Europe. So tariffs in the middle of the Atlantic
Speaker 14: would really be a big burden for both sides, and
Speaker 14: maybe that would be even tougher for the US manufacturers.
Speaker 7: Have you been putting extra resources into the Alabama parts?
Speaker 7: Have you been stop piling? Have you been there's no
Speaker 7: kind of preparations or anything that you have been taking
Speaker 7: on thus far in order to get ready for something
Speaker 7: that could be coming.
Speaker 14: No, keep doing what we've been doing so far, relying
Speaker 14: on Alabama. Indeed, that's a plant where we have a
Speaker 14: three final assembly line.
Speaker 6: One is not yet delivering planes, but the two others are.
Speaker 14: So we are cocuring from everywhere around the world assembling
Speaker 14: there in the US with the US jobs, two.
Speaker 6: US airlines as well.
Speaker 14: So I think we are key to the US ecosystem,
Speaker 14: to the Vision ecosystem, and we think that plays a
Speaker 14: big role in how tariffs are targeted.
Speaker 7: Okay, final quick question you sits on actually the Business
Speaker 7: Council in America. You speak to CEOs there, What message
Speaker 7: do you take to them from Europe? What is the
Speaker 7: message that should be coming to a US business and
Speaker 7: b the US administration.
Speaker 14: Well, at the moment, I think there's a lot of
Speaker 14: questioning of what where all this is going, what it
Speaker 14: will mean for each industry, since a bit and wait
Speaker 14: and C mode to understand better for how long tariffs
Speaker 14: could come, who will be impacted, how to respond to
Speaker 14: the tariffs if any As I told you, we are
Speaker 14: not directly targeted with tariffs at the moment.
Speaker 6: But indeed there is a lot of.
Speaker 14: Questioning and to understand better what is changing and how
Speaker 14: to adapt.
Speaker 6: We are in the world that is fast changing, and.
Speaker 14: It's a lot about adapting to those changes.
Speaker 7: K it's great to be here to Louise, thank you
Speaker 7: very much for for inviting us here to us as
Speaker 7: headquarters in Toulouse in France. Gimfouri, the CEO of Air
Speaker 7: of US.
Speaker 3: Apple is exploring the idea of adding cameras and visual
Speaker 3: intelligence features to its smart watch Thrus singing the company
Speaker 3: into the AI wearables market. Bloombergs Mark German joins us
Speaker 3: now for more So, Mark, what do you know about
Speaker 3: these developments?
Speaker 2: Yeah, thanks for having me.
Speaker 10: Over the past year and change, companies have been trying
Speaker 10: to see if they can meld AI with hardware. We've
Speaker 10: seen failed attempts like the Humane aipan. You've seen bigger
Speaker 10: splashes like the ray band smart glasses from Meta And
Speaker 10: what these have in common is they have cameras and
Speaker 10: microphones and widening cameras and microphones.
Speaker 2: Because to really.
Speaker 10: Take advantage of the AI, you need to have a
Speaker 10: solid understanding of your surrounding environment. And so what Apple
Speaker 10: wants to do now is bring cameras to its wearables.
Speaker 10: So they're working on new versions of AirPods as well
Speaker 10: as new versions of both of its Apple Watch models
Speaker 10: that add cameras in order to have a better idea
Speaker 10: of the outside world. One thing you're looking at now
Speaker 10: is adding cameras to the Apple Watches, and so what
Speaker 10: that would entail is pointing your Apple Watch at something
Speaker 10: and then that pulling up the visual intelligence future they
Speaker 10: added to the iPhone sixteen models last year basically, scan
Speaker 10: a poster, scan a plant, scan anything, and it'll tell
Speaker 10: you what it is using Chat, GPT or Google Search.
Speaker 10: And so the idea here is for Apple to eventually
Speaker 10: convert its models to have that capability to do that
Speaker 10: instead of Open AI and Google. But the bigger picture
Speaker 10: here is adding cameras to as many devices as possible
Speaker 10: in order to get people to upgrade, but mostly in
Speaker 10: order to tap into its artificial intelligence offerings.
Speaker 3: Hey, Mark, I use chat GPT a lot and I
Speaker 3: talked to it.
Speaker 2: It talks to me. It's pretty helpful, fun conversations.
Speaker 3: I try that with Siri and it just doesn't work
Speaker 3: as well. What are they going to make real advances
Speaker 3: with their AI assistant.
Speaker 2: It's going to be a while. At this point.
Speaker 10: My belief is that they're not going to have anything
Speaker 10: significantly new or really powerful until twenty twenty seven, so
Speaker 10: we're about a few years away. And you know, as
Speaker 10: I wrote last week, they're shaking up their management of Siri.
Speaker 10: They've actually removed Siri from the oversight of their head
Speaker 10: of AI, right, which tells you pretty much everything you
Speaker 10: need to know, and they've moved that into their software
Speaker 10: engineering organization and they put the guy who created the
Speaker 10: vision pro in charge of it.
Speaker 2: All right, Thanks very much, always great to talk to you.
Speaker 3: Wish we had more time, Bloomberg's Mark German. They are
Speaker 3: talking us through all things Apple. That does it for
Speaker 3: this edition of Bloomberg Technology. Don't forget to follow our
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