WEBVTT - Tesla's C-Suite Shakeup, Softbank's Profitability Push 0:00:01.360 --> 0:00:05.200 We're from Mahart where innovation, money and power Collie in 0:00:05.320 --> 0:00:10.240 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.280 --> 0:00:11.200 and Ed Ludlow. 0:00:26.079 --> 0:00:29.000 I met Ludlow in San Francisco. Caroline hyders off today. 0:00:29.040 --> 0:00:32.600 This is Bloomberg Technology coming up on the program. Tesla's 0:00:32.760 --> 0:00:36.440 shock change of CFO Zat Kirkhorn has stepped down after 0:00:36.520 --> 0:00:39.880 thirteen years at the ev maker. Meanwhile, Elon Musk's health 0:00:39.960 --> 0:00:42.880 is in focus as talk of a Zuckerberg cage fight 0:00:43.360 --> 0:00:46.479 heats up, and plugging a forty eight billions on a 0:00:46.520 --> 0:00:50.400 black hole artificial intelligence could fuel a rebound at SoftBank, 0:00:50.640 --> 0:00:54.040 as the Japanese conglomerates Vision Fund seeks to snap five 0:00:54.120 --> 0:00:57.360 quarters of losses, and we go live to Lisbon as 0:00:57.400 --> 0:01:00.960 a key leader responds to Portugal's probe into a European 0:01:01.000 --> 0:01:05.440 telecoms giant artis the name we are watching so closely. 0:01:05.520 --> 0:01:08.480 The surprise story this Monday that we all woke up to. 0:01:08.920 --> 0:01:13.440 Zach kirkchn stepped down August fourth as Tesla's CFO. He's 0:01:13.440 --> 0:01:16.399 been at the company thirteen years. He became CFO early 0:01:16.440 --> 0:01:20.560 twenty nineteen. He is a big factor behind the profit 0:01:20.640 --> 0:01:24.280 at Tesla some of the key capital raises they've done. 0:01:24.360 --> 0:01:27.319 The chief accounting officer is going to transition into the 0:01:27.360 --> 0:01:30.080 CFO role. Kirk CON's going to stay till the end 0:01:30.080 --> 0:01:33.360 of the year to oversee that transition. Pierre Faragu of 0:01:33.400 --> 0:01:36.280 New Street Research currently has a buy rating on Tesla 0:01:36.360 --> 0:01:40.040 and joins us to discuss. Pierre your reaction to Zach 0:01:40.160 --> 0:01:41.120 stepping down. 0:01:42.680 --> 0:01:45.840 Well, very solfishly and as an analystcovering Deskla, I'm very 0:01:45.840 --> 0:01:50.280 disappointed because Zach was like an exceptionally held through CFO 0:01:50.320 --> 0:01:54.000 four analyst, always very very impressive in his ability to 0:01:54.040 --> 0:01:57.760 provide like a big picture and drill into very specific 0:01:57.840 --> 0:02:00.160 numbers he could give to give a good sound of 0:02:00.200 --> 0:02:05.559 what was happening. So the sense of control and understanding 0:02:05.560 --> 0:02:10.720 of how like the big Tesla machine works at at 0:02:10.760 --> 0:02:13.720 Tesla was impressive and I'm definitely going to miss it. 0:02:13.720 --> 0:02:16.560 It's also definitely a surprise. I was not expecting him 0:02:16.600 --> 0:02:19.120 to live. He's very young now, as you said, thirteen 0:02:19.200 --> 0:02:22.160 years as STEPSLA, four years as a CFO, still very young. 0:02:23.120 --> 0:02:25.000 You know, a lot, a lot of things he can 0:02:25.040 --> 0:02:27.840 do with his life, and quite a good, you know, 0:02:27.919 --> 0:02:31.080 amount of money in his on his bank account because 0:02:31.080 --> 0:02:34.000 of course, being the CFO of Tesla and going through 0:02:34.040 --> 0:02:38.720 such like an exceptionist strong stock performance means Zach already 0:02:38.800 --> 0:02:42.440 got paid very well for his time as TESTLIGHTE reminds me, 0:02:42.560 --> 0:02:44.280 you know, when their own left Tesla, it was the 0:02:44.320 --> 0:02:49.480 same thing. Tesla is the company that attracts talents the best. 0:02:49.280 --> 0:02:49.840 In the world. 0:02:49.880 --> 0:02:52.800 Remember there is three million applications a year. It's also 0:02:52.880 --> 0:02:55.959 the company that has the most difficulties to retain them 0:02:55.960 --> 0:02:58.480 in the long run, because that's the company that is 0:02:58.520 --> 0:03:01.520 making talents very rich rapidly at the same time. 0:03:01.639 --> 0:03:03.520 So yes, I think part of the model. 0:03:04.840 --> 0:03:08.799 So Tesla's name Vibab Teenager as the next CFO. He's 0:03:08.800 --> 0:03:13.000 been the chief accounting officer. Do you know anything about him? 0:03:13.320 --> 0:03:15.840 No, I don't have the chance to meet him personally. 0:03:15.880 --> 0:03:19.320 You know that Tesla is very very protective with the 0:03:19.400 --> 0:03:23.320 time of their executive So I had the opportunity to 0:03:23.360 --> 0:03:27.320 speak to Zach regularly, not so much to Vibav. You know, 0:03:27.639 --> 0:03:31.400 he's basically coming from the ranks of Tesla. I'm very 0:03:31.880 --> 0:03:34.679 very confident he will he will do a great job, 0:03:34.720 --> 0:03:38.400 and I hope I will forget very soon. My regrets 0:03:38.400 --> 0:03:40.880 of seeing Zach living and I'm sure ABAVS will be 0:03:40.920 --> 0:03:42.840 very helpful with an artists as well. 0:03:43.720 --> 0:03:46.560 Pierre, You and I on this program Bloomberg Technology have 0:03:46.760 --> 0:03:49.920 used and talked about the term key man risk, and 0:03:49.960 --> 0:03:51.880 the thing that we talk about in the context of 0:03:52.000 --> 0:03:54.240 Zach was that he was one of just a handful 0:03:54.800 --> 0:03:59.360 of stated executive officers. Right, you have Drew Baglino leading 0:03:59.360 --> 0:04:02.680 the power in a battery business. Tom ju is now 0:04:02.720 --> 0:04:06.520 coming over from China. But does the key man risk 0:04:06.920 --> 0:04:11.160 conversation now get amplified because Zach, who's been such a 0:04:11.200 --> 0:04:13.800 stable force, is now gone. 0:04:15.920 --> 0:04:17.120 It's a very good question. 0:04:17.160 --> 0:04:19.120 So key mander is, yes, you can't ignore that the 0:04:19.200 --> 0:04:22.239 CFO leaves the company the stock comes down. You can't 0:04:22.360 --> 0:04:25.240 like that makes complete sense. There is like an oportunity 0:04:25.480 --> 0:04:27.560 risk reflected in a move like that. You never know 0:04:27.640 --> 0:04:32.200 exactly what's behind behind it. Then yes, a CFO, and 0:04:32.320 --> 0:04:35.400 especially a CFO with the talent of Zak, is a 0:04:35.440 --> 0:04:37.880 key man in an organization like that. Now, if you 0:04:37.920 --> 0:04:40.960 take a step back and look at how he learned, 0:04:41.040 --> 0:04:45.120 most likes to manage the multiple businesses he has. He 0:04:45.279 --> 0:04:48.159 likes to be directly speaking to very technical people, so 0:04:48.240 --> 0:04:51.240 people like Drew typically then he likes to have a 0:04:51.320 --> 0:04:54.640 type of either a CFO or a chief operating officer 0:04:55.279 --> 0:04:59.640 who is in charge of running the shop. And that's 0:04:59.640 --> 0:05:02.719 a model of SpaceX. That's the model more or less 0:05:02.720 --> 0:05:05.920 of Tesla with like the no real CEO, but like 0:05:06.720 --> 0:05:10.440 Zach and potentially term running the business from a financial 0:05:10.440 --> 0:05:14.240 and commercial, financial and operational and commercial perspective. And so 0:05:14.960 --> 0:05:19.960 that model, once again is extremely resilient as long as 0:05:20.000 --> 0:05:25.039 you have this capability of harnessing talents and bringing them 0:05:25.120 --> 0:05:28.440 up the pyramid. And look at someone like Tom, like 0:05:28.480 --> 0:05:33.520 the trajectory in China Tesla very similar to the trajectory 0:05:33.560 --> 0:05:36.760 of that in the finance department, Like these people came 0:05:36.839 --> 0:05:40.000 in very highly selected by Tesla and amongst all these 0:05:40.240 --> 0:05:43.960 very high high quality talents Tesla has, Tesla is extremely 0:05:43.960 --> 0:05:48.680 good at promoting very very fast, very young talents. So 0:05:48.839 --> 0:05:51.839 as long as that machine is there. As an analyst 0:05:51.839 --> 0:05:53.880 looking at the stock, looking at the long term, even 0:05:53.920 --> 0:05:57.760 the medium term, I feel that the key man risk 0:05:57.839 --> 0:05:59.320 is what it is. We'll see, you know, in the 0:05:59.320 --> 0:06:02.840 next few months, Skipper of you know, they's anything more 0:06:02.960 --> 0:06:05.520 to know about the situation. But I feel a relatively 0:06:05.560 --> 0:06:09.160 confident we shouldn't meet excessively. 0:06:10.000 --> 0:06:11.640 PF fair agree. New Street Research. 0:06:11.680 --> 0:06:14.400 Always grateful for your time and your reaction to what 0:06:14.480 --> 0:06:16.000 was a surprise piece of news this morning. 0:06:16.040 --> 0:06:16.359 Thank you. 0:06:16.800 --> 0:06:20.159 Let's stick with Musk over the weekend. Elon posted on 0:06:20.440 --> 0:06:22.640 x formerly known as Twitter, that he's going to have 0:06:22.640 --> 0:06:25.160 an MRI of his neck and upper back and he's 0:06:25.200 --> 0:06:28.680 going to find out whether or not he'll need surgery. This, 0:06:28.839 --> 0:06:32.799 of course, ahead of a proposed cage fight with Meta's 0:06:32.839 --> 0:06:36.280 co founder Mark Zuckerberg joined me out of DC. Bloomberg's 0:06:36.320 --> 0:06:39.160 Jackie Davlos. You and I have been through all of 0:06:39.200 --> 0:06:42.840 the posts, all of the timelines, all of the ideas. 0:06:42.960 --> 0:06:46.240 What do we know is the latest about this proposed 0:06:46.279 --> 0:06:46.760 cage fight. 0:06:48.120 --> 0:06:51.800 Well, and we know that cage fight is still up 0:06:51.839 --> 0:06:54.159 in the air, so our eager audience out there shouldn't 0:06:54.160 --> 0:06:56.240 put their beds in just yet. But what we do 0:06:56.360 --> 0:06:59.280 know is that Elon must sort of put the kebash 0:06:59.360 --> 0:07:03.440 on what's seemed to be an advancement in a proposed 0:07:03.520 --> 0:07:06.960 match between the two tech billionaires because of his injury 0:07:07.000 --> 0:07:09.400 to his upper neck and to his neck and upper back. 0:07:09.800 --> 0:07:12.640 Now it seemed to be escalating earlier in the day, 0:07:12.720 --> 0:07:17.960 because when Elon Musk first posted that Sunday that the 0:07:18.040 --> 0:07:20.240 batch should be live stream on next and that these 0:07:20.280 --> 0:07:24.680 proceeds would be going to charity, Mark Zuckerberg actually responded 0:07:24.720 --> 0:07:28.000 to that and said, hey, look, I suggested that we 0:07:28.160 --> 0:07:31.600 have this on August twenty six. Haven't heard back, and 0:07:31.680 --> 0:07:34.360 so a physical match may not be playing out, but 0:07:34.400 --> 0:07:37.000 they're certainly throwing punches at each other on their respective 0:07:37.120 --> 0:07:38.080 platforms already. 0:07:38.760 --> 0:07:40.920 You know, you and I cover technology, and the platforms 0:07:40.960 --> 0:07:44.440 are at the heart of this. You mentioned Zuckerberg's response 0:07:44.560 --> 0:07:48.480 threads being more reliable outside of the tech. 0:07:49.280 --> 0:07:51.600 What do we know about the training that's going on, Like, 0:07:51.720 --> 0:07:54.280 is this real, Jackie? Are they really gearing up for 0:07:54.320 --> 0:07:54.760 this fight? 0:07:56.080 --> 0:07:59.320 Well, you know, they've both been posting pictures of them training. 0:07:59.440 --> 0:08:02.680 We saw that post that Mark Zuckerberg had of him 0:08:02.720 --> 0:08:04.200 with this really heavy. 0:08:04.040 --> 0:08:05.320 Vest that he was. 0:08:05.320 --> 0:08:08.440 Bragging about how fast he could do this particular training session. 0:08:08.480 --> 0:08:11.680 I mean, they're really putting themselves out there in this 0:08:11.760 --> 0:08:14.200 way that you know, at least for Zuckerberg it's a 0:08:14.240 --> 0:08:16.360 little uncharacteristic of him. 0:08:16.440 --> 0:08:18.400 For Elon Musk not so much. 0:08:18.480 --> 0:08:20.760 But you know, at the end of the day, this 0:08:20.880 --> 0:08:23.160 isn't really about a cage match. I think what a 0:08:23.200 --> 0:08:26.120 lot of tech watchers out there realize is that the 0:08:26.200 --> 0:08:29.920 competition between the two really has intensified because of this 0:08:30.280 --> 0:08:34.160 tit for tat about the social platforms themselves, and so 0:08:34.240 --> 0:08:36.640 I think this is a culmination, probably a much more 0:08:36.760 --> 0:08:40.480 entertaining one that we normally see play out, but certainly 0:08:40.520 --> 0:08:41.559 one that's still a little. 0:08:41.400 --> 0:08:42.040 Bit up in the air. 0:08:43.080 --> 0:08:46.240 Ben Bos, Jackie Davlos, everything about the oxygen out of DC. 0:08:46.440 --> 0:08:47.439 Thank you very much. 0:08:48.040 --> 0:08:49.880 Now, look, we spent the last couple of weeks talking 0:08:49.880 --> 0:08:53.800 about the rebranding of Twitter two X. But what does 0:08:53.960 --> 0:08:59.440 Martin Grassa, the co designer a Twitter's original iconic bluebird logo, 0:09:00.080 --> 0:09:01.120 have to say about the change? 0:09:01.120 --> 0:09:01.840 Have a listen to this. 0:09:02.960 --> 0:09:05.400 I think with the letter form itself, it's a tough 0:09:05.920 --> 0:09:08.040 solve that they have to come up with because it's 0:09:08.120 --> 0:09:12.240 angular and sharp, it has an aggressive construction, and so 0:09:12.280 --> 0:09:14.599 I think the challenge that they'll have is how to 0:09:14.640 --> 0:09:17.679 define what X means, how to make it feel welcoming 0:09:18.400 --> 0:09:21.439 and approachable in its own way. And it's an incredible 0:09:21.440 --> 0:09:24.160 opportunity to have a single letter domain. I think there 0:09:24.240 --> 0:09:26.080 is only a few of them in the world. And 0:09:26.080 --> 0:09:28.599 they really get a chance to sort of say the 0:09:28.679 --> 0:09:31.920 final letter in the alphabet the same way you know 0:09:32.080 --> 0:09:34.080 people think about the bird today. I think, you know, 0:09:34.160 --> 0:09:38.160 ten years ago, there wasn't this emotional attachment to the 0:09:38.160 --> 0:09:40.679 bird that we see as it starts. 0:09:40.400 --> 0:09:43.640 To you know, pull away and change the X coming 0:09:43.640 --> 0:09:45.240 out here on Bloomberg Technology, check it. 0:09:45.240 --> 0:09:46.880 Look at zoom shares. 0:09:47.559 --> 0:09:49.920 We've been talking and asking is this the end of 0:09:49.920 --> 0:09:52.680 the remote work era? When the darling of the remote 0:09:52.880 --> 0:09:55.320 work era says to its staff, time to come back 0:09:55.360 --> 0:09:58.560 to the office. It's time to have a conversation that next. 0:09:58.960 --> 0:09:59.800 This is Bloomberg. 0:10:21.880 --> 0:10:24.520 Another piece of news that we're tracking here on Bloombow Technology, 0:10:24.559 --> 0:10:28.800 PayPal is launching a stable coin, the latest crypto payments push. 0:10:28.800 --> 0:10:31.400 What's so interesting about this It's the first by a 0:10:31.520 --> 0:10:35.640 large financial company and is significant joining us now who 0:10:35.679 --> 0:10:41.079 else Bloomberg Shnali Bassekale paypaler is like the og name 0:10:41.160 --> 0:10:45.000 in payments and then you follow in the modern era 0:10:45.080 --> 0:10:47.720 discussion around crypto. I'm not so surprised by this, but 0:10:47.800 --> 0:10:49.400 it is a significant piece of news. 0:10:49.559 --> 0:10:49.719 Oh. 0:10:49.760 --> 0:10:52.120 Absolutely, You and I talk about the PayPal mafia all 0:10:52.160 --> 0:10:55.320 the time. Everyone from elon Musk to Max Levchen, and 0:10:55.320 --> 0:10:57.480 so it's not surprising to see PayPal be the first 0:10:57.559 --> 0:11:00.520 really come out and make a stable coin announce They 0:11:00.520 --> 0:11:03.040 are also working with Paxos, which we know has been 0:11:03.120 --> 0:11:06.280 kind of a longer standing stable coin issuer and is 0:11:06.360 --> 0:11:09.120 regulated pretty heavily here in the United States, including with 0:11:09.160 --> 0:11:11.240 the New York Department of Financial Services. So if they 0:11:11.240 --> 0:11:13.400 are trying to get something off the ground, to do 0:11:13.440 --> 0:11:15.800 it in a way that is already regulated, well known 0:11:15.840 --> 0:11:18.800 by the regulators, it makes a lot of sense, especially 0:11:18.840 --> 0:11:21.400 because ed if you think about the way that stable 0:11:21.440 --> 0:11:24.080 coins are used kind of as an on ramp off ramp, 0:11:24.360 --> 0:11:26.320 and kind of also here on the eve of the 0:11:26.320 --> 0:11:29.960 House Financial Services Committee really trying to proceed with a 0:11:30.000 --> 0:11:33.240 new bill here for stable coin legislation. So a lot 0:11:33.280 --> 0:11:36.720 of movement on that front. Very unclear what the endgame is, 0:11:37.040 --> 0:11:39.600 but as we know, PayPal has four hundred and thirty 0:11:39.640 --> 0:11:42.800 million users here that are right for the taking. When 0:11:42.800 --> 0:11:45.560 you think about the movement over to digital payments. 0:11:45.760 --> 0:11:49.120 So the basics of stable coins a cryptotoken that's pegged 0:11:49.520 --> 0:11:52.360 to a real asset like the dollar, the US dollar, 0:11:52.920 --> 0:11:55.640 is that the case with PayPal stable coin? What are 0:11:55.840 --> 0:11:57.360 the specifics of it. 0:11:57.640 --> 0:12:01.720 Yeah, it's fully backed by US dollar deposits, treasuries, cash equivalents. 0:12:01.920 --> 0:12:04.320 I think it will be interesting to see how that 0:12:04.440 --> 0:12:06.880 works over time and who else they work with. I 0:12:06.920 --> 0:12:09.920 think about what STA Circle has done, for example, and 0:12:10.040 --> 0:12:13.240 Circle also has used Blackrock to manage that kind of 0:12:13.280 --> 0:12:16.800 treasury of cash and cash equivalents. As we've seen over time, 0:12:16.840 --> 0:12:19.040 that has been a very interesting thing to even look 0:12:19.120 --> 0:12:21.360 under the hood. Because initially they had kept money at 0:12:21.400 --> 0:12:23.720 Silicon Valley Banks soil Coon Valley Bank hat failed. They 0:12:23.800 --> 0:12:25.760 worked more with Blackrock to figure out how to move 0:12:25.800 --> 0:12:27.880 some of that money. So to the point that you're 0:12:27.920 --> 0:12:30.839 making the linkages here to the US financial system will 0:12:30.880 --> 0:12:34.080 be interesting to keep an eye on continuously and again 0:12:34.120 --> 0:12:35.080 the partners. 0:12:34.679 --> 0:12:34.920 That they have. 0:12:35.000 --> 0:12:37.600 The other reason I think about Circle so heavily is 0:12:37.679 --> 0:12:41.480 because of the way that coinbase, for example, uses Circle 0:12:41.520 --> 0:12:45.480 and USDC to really manage their kind of cash holdings 0:12:45.520 --> 0:12:48.800 here as almost a proxy, given that it's backed so 0:12:48.920 --> 0:12:53.040 much by very stable liquid US dollars and treasuries. The 0:12:53.320 --> 0:12:56.920 expansion of how PayPal works with the existing crypto ecosystem 0:12:56.960 --> 0:12:59.840 in that way, how much can you use PayPal stable 0:13:00.400 --> 0:13:02.680 given that it is back kind of just by treasuries 0:13:02.679 --> 0:13:05.800 and cash. Will more companies like a coin base feel 0:13:05.840 --> 0:13:07.719 comfort in doing that and work with PayPal in the 0:13:07.720 --> 0:13:09.920 future at a greater scale is a pivotal question. 0:13:10.280 --> 0:13:13.320 Well, quickly, we just showed a fantastic chart, mister director. 0:13:13.320 --> 0:13:15.280 Bring it back up up there you go. You look 0:13:15.320 --> 0:13:18.800 at the market for stable coin. It is clearly dominated 0:13:18.840 --> 0:13:22.480 by one name, Shanale. Very quickly break down the market 0:13:22.520 --> 0:13:22.920 for US. 0:13:23.040 --> 0:13:25.599 Yeah, very clearly. Tether is a big part of the 0:13:25.600 --> 0:13:27.839 stable coin market. And I think you have to look 0:13:27.880 --> 0:13:31.480 at this ed because twenty one percent is USDC as well. 0:13:31.520 --> 0:13:33.559 How much are people using stable coins inside of the 0:13:33.640 --> 0:13:36.120 United States versus outside of the United States. PayPal is 0:13:36.120 --> 0:13:40.120 still a US domiciled company and so there is a 0:13:40.200 --> 0:13:42.559 rational for them to be working with past paxos. We've 0:13:42.559 --> 0:13:45.240 seen issues with other stable coins through paxos, like Finance 0:13:45.559 --> 0:13:48.320 and so but paxos again has been a very trusted 0:13:48.320 --> 0:13:51.280 issue in the United States, with a lot of US adoption, in. 0:13:51.240 --> 0:13:55.840 Particular Bloomberg Shnali bassec all things crypto out of New York. 0:13:56.320 --> 0:13:58.440 All right, So the push to get tech workers back 0:13:58.440 --> 0:14:01.839 in the office continues. This time the back to office 0:14:01.840 --> 0:14:04.960 announcement coming from the darling of the work from home 0:14:05.000 --> 0:14:09.120 era Zoom to discuss Thingboks Brady Ford here with us. 0:14:09.640 --> 0:14:11.440 This was one I did not see coming. What is 0:14:11.480 --> 0:14:12.079 Zoom saying? 0:14:12.840 --> 0:14:15.959 Yeah, Zoom said pretty much everybody else has said, which 0:14:16.000 --> 0:14:18.240 is we're gonna work better in the office, come back 0:14:18.240 --> 0:14:19.080 in two days a week. 0:14:19.120 --> 0:14:20.760 It'll be great see your colleagues. 0:14:21.280 --> 0:14:23.160 And what's kind of funny about that to a lot 0:14:23.160 --> 0:14:26.120 of people is right that Zoom facilitated work from home. 0:14:26.520 --> 0:14:31.080 Without them, we'd probably all be using Skype. But yeah, 0:14:31.120 --> 0:14:34.200 I think what's interesting here, though, is that Zoom will 0:14:34.240 --> 0:14:37.440 say that this actually aligns pretty closely with our current strategy. 0:14:37.800 --> 0:14:40.640 They recognize that a lot of companies are going back 0:14:40.680 --> 0:14:43.160 at least part time, and so they've really worked on 0:14:43.240 --> 0:14:48.080 developing software for in office collaboration hybrid and so they 0:14:48.120 --> 0:14:50.800 figure to make these tools and make some more sense 0:14:50.840 --> 0:14:53.000 for their workers too to be in the office at 0:14:53.040 --> 0:14:53.880 least part of the time. 0:14:54.960 --> 0:14:57.960 The reality of this story, Brady, as you've written about, 0:14:58.040 --> 0:15:01.360 is that in the post pandemic world, Zoom's really struggled 0:15:01.520 --> 0:15:04.280 to keep its pace of growth. Tell me about the 0:15:04.320 --> 0:15:05.520 reasons why. 0:15:05.800 --> 0:15:09.240 Absolutely well, most tech companies ended up peaking around late 0:15:09.320 --> 0:15:12.280 twenty twenty one. Zoom peaked a fall year earlier in 0:15:12.320 --> 0:15:15.360 October twenty twenty because there was just this elation when 0:15:15.360 --> 0:15:19.000 everybody said we're working for home forever. We have companies 0:15:19.040 --> 0:15:21.520 all over the place, I mean, Salesforce said we're never 0:15:21.560 --> 0:15:24.880 going back to the office, and it became clear that 0:15:24.920 --> 0:15:27.520 some of these old ways of working will create back 0:15:28.000 --> 0:15:29.760 and that's really what's dented Zoom. I mean, they have 0:15:29.800 --> 0:15:33.760 a fantastic single product. Most people will say it's better 0:15:33.800 --> 0:15:37.520 than the competition, but it's hard to make a successful 0:15:37.600 --> 0:15:41.040 platform company on one product, especially when most people who 0:15:41.080 --> 0:15:43.080 want that product have already purchased it. 0:15:44.400 --> 0:15:48.280 Let's be clear about the CEO, Eric Dwan's position on this, 0:15:48.360 --> 0:15:50.680 though he still believes in hybrid working. 0:15:51.680 --> 0:15:53.560 Yeah, and that's what's interesting. I think a lot of 0:15:53.600 --> 0:15:57.160 companies that are increasingly pushing workers back to the office 0:15:57.440 --> 0:16:01.680 will say we're staying hybrid. The question is whether that 0:16:01.800 --> 0:16:03.200 number continues to creep up. 0:16:03.280 --> 0:16:03.560 Right? 0:16:03.680 --> 0:16:06.600 Does it start at two and then next year it's three, 0:16:06.640 --> 0:16:10.360 next year it's four. Are we in a three days 0:16:10.360 --> 0:16:15.040 a week white collar work world forever? You know, if 0:16:15.080 --> 0:16:18.240 you look at finance Obviously some places are five days 0:16:18.280 --> 0:16:21.160 a week. Even sales positions at a lot of tech 0:16:21.200 --> 0:16:23.120 companies are getting to four days a week now. So 0:16:23.160 --> 0:16:26.440 the question is whether it stabilizes hybrid or it's just 0:16:26.480 --> 0:16:28.880 going to continue creeping back to the old ways. 0:16:30.360 --> 0:16:33.360 Brody Forward coming to us live from an office or 0:16:33.400 --> 0:16:35.680 office in New York City. I mean, are there any 0:16:35.680 --> 0:16:38.240 other tech companies that you cover that are taking a 0:16:38.240 --> 0:16:41.480 similar approach that have recalled staff in recent weeks? 0:16:41.600 --> 0:16:44.160 Well, here's an interesting one. Amazon, because a lot of 0:16:44.280 --> 0:16:47.120 tech companies said, hey, if you live near an office, 0:16:47.200 --> 0:16:49.560 you have to go because a lot of hiring was 0:16:49.560 --> 0:16:52.800 totally remote in the pandemic. Amazon took a step to 0:16:52.800 --> 0:16:55.280 say that if you don't live near an office, you 0:16:55.320 --> 0:16:57.840 gotta move, you gotta come back. And to me, that 0:16:57.880 --> 0:17:00.880 was an unprecedented step within the big techies. Again, if 0:17:00.880 --> 0:17:03.200 you look at finance or others, my guess has been 0:17:03.200 --> 0:17:05.000 a little bit harder for a while now. 0:17:06.520 --> 0:17:09.159 Bombos, Brady Ford always good to catch up. Thank you 0:17:09.200 --> 0:17:09.760 out in New. 0:17:09.720 --> 0:17:22.159 York Artisiz Patrick Drahi said he felt quote betrayed and 0:17:22.240 --> 0:17:25.720 deceived by a small group of individuals, including one of 0:17:25.720 --> 0:17:28.840 his oldest colleagues, This was in response to a criminal 0:17:28.840 --> 0:17:33.000 corruption probe in Portugal focused on key figures connected to 0:17:33.080 --> 0:17:36.760 his telecommunity communications empire. Here with the latest out of 0:17:36.800 --> 0:17:40.399 Lisbon Bloomberg's Enriqualmeida. So let's go back to the beginning. 0:17:41.160 --> 0:17:44.919 How did some Autists officials become caught up in a 0:17:44.960 --> 0:17:47.520 Portuguese probe about the company. 0:17:48.480 --> 0:17:49.160 Hi ed Well? 0:17:49.359 --> 0:17:52.320 This all began last month when Portuguese police searched about 0:17:52.640 --> 0:17:55.760 nightighty homes and offices in Portugal and later detained the 0:17:55.800 --> 0:17:59.000 co founder of artist Romandu Preidra and three other people 0:17:59.040 --> 0:18:03.000 for question. Now, prosecutors believe that Pareta and a close 0:18:03.119 --> 0:18:06.679 group of people rigged procurement contracts at Altis's portual in 0:18:06.680 --> 0:18:08.320 a way that harmed the group's. 0:18:08.200 --> 0:18:09.920 Own companies for their own benefit. 0:18:10.560 --> 0:18:14.240 Pareida is considered Drahi's right hand man, which has raised 0:18:14.280 --> 0:18:16.720 fears that such practices could be taking place in other 0:18:16.760 --> 0:18:20.200 countries where the group operates. The irony of this all 0:18:20.600 --> 0:18:22.800 is that Altis has earned a name for itself here 0:18:22.840 --> 0:18:24.639 in Portugal for cutting costs. 0:18:24.680 --> 0:18:25.880 A union leader told me. 0:18:25.880 --> 0:18:28.960 Last month that when Altis spot Portugal Telecom, the country's 0:18:28.960 --> 0:18:31.960 biggest telecom company, Peda told units that he had to 0:18:31.960 --> 0:18:35.480 cut about five thousand jobs, that's about half of the workforce. 0:18:35.920 --> 0:18:37.840 Now he suspected, along. 0:18:37.600 --> 0:18:40.080 With a group of other people, of allegedly setting up 0:18:40.119 --> 0:18:43.359 businesses that want supply contracts from Altese to line up 0:18:43.359 --> 0:18:44.000 his pockets. 0:18:45.160 --> 0:18:48.840 Altis in Europe is just a telecom's giant now, right, 0:18:48.920 --> 0:18:52.480 The question is, Henry, what happens if this escalates beyond 0:18:52.560 --> 0:18:55.840 Portugal to other European countries or even the US. 0:18:57.160 --> 0:18:58.560 Well, that's the key question here. 0:18:58.840 --> 0:19:01.800 Altis has alleged to be a victim of foul play 0:19:01.960 --> 0:19:04.720 and that the case for now is limited to Portugal, 0:19:05.400 --> 0:19:07.159 but the fact that one of its co founders is 0:19:07.200 --> 0:19:10.119 under house arrest has raised concerns of poor governance elsewhere, 0:19:10.400 --> 0:19:12.920 and the investigation couldn't need spread to other countries where 0:19:12.920 --> 0:19:14.480 it operates, like France. 0:19:14.600 --> 0:19:15.520 Or the US. 0:19:16.040 --> 0:19:19.080 One alarm bell has been the dismissal of Altis USA 0:19:19.240 --> 0:19:23.199 chief procurement officer Yossi venture Trids, who is prayed as 0:19:23.280 --> 0:19:26.440 son in law. Yossi and his wife Gael made headlines 0:19:26.440 --> 0:19:28.840 in two thousand and two for buying a seventy million 0:19:28.840 --> 0:19:33.240 apartment in Manhattan. Now, if authorities in the US get involved, 0:19:33.440 --> 0:19:37.040 Altiace could face potential fines poor governance, but the biggest 0:19:37.040 --> 0:19:40.960 concern for now is Altis's huge debt pile. The company's 0:19:41.000 --> 0:19:44.040 debt has belonged to more than sixty million after years 0:19:44.080 --> 0:19:48.840 of aggressive acquisition at the same time getting more preentive. 0:19:49.280 --> 0:19:51.920 Yep, no, I'm sorry to cut you off with short 0:19:51.960 --> 0:19:53.600 on time and read, but thank you for your on 0:19:53.640 --> 0:20:00.200 the ground reporting at Lisbon will continue to track the story. 0:20:06.280 --> 0:20:08.680 Welcome back to Bloomberg Technology. Ed love Low here in 0:20:08.680 --> 0:20:11.080 San Francisco. The single name that I'm watching though halfway 0:20:11.119 --> 0:20:13.879 through the program soft Bank in Japan. You look at 0:20:14.080 --> 0:20:17.719 the parent group, SoftBank Group down nine ten to one percent, 0:20:18.119 --> 0:20:21.160 but kind of paired its losses. We get their earnings 0:20:21.440 --> 0:20:24.400 very late night West Coast time early hours of Tuesday 0:20:24.400 --> 0:20:27.920 morning East Coast time. All focus on Vision Fund expected 0:20:27.960 --> 0:20:32.239 to return to profitability after five quarters of losses in 0:20:32.280 --> 0:20:33.040 that Vision Fund. 0:20:33.080 --> 0:20:34.480 What's going to drive the rebound? 0:20:34.840 --> 0:20:38.600 Bloomberg's Isabelle Lee with me now with the latest Isabelle. 0:20:38.760 --> 0:20:40.600 This is an artificial intelligence story. 0:20:41.160 --> 0:20:43.960 It definitely is ed and is it even a surprise? 0:20:44.080 --> 0:20:46.760 AI is really what's going to fuel the rally or 0:20:46.840 --> 0:20:49.760 the soft rebound? Rather modest rebound, however you want to 0:20:49.800 --> 0:20:51.840 call it. But this is a big deal considering that 0:20:52.440 --> 0:20:55.480 the Soft Fund Vision Fund, which is a venture capital 0:20:55.600 --> 0:20:59.080 arm of Soft Fund, have seen losses in the past 0:20:59.119 --> 0:21:01.800 five quarters so to the tune of forty eight billion. 0:21:01.920 --> 0:21:05.480 So this quarter, if it sees modest gains, it'll be good. 0:21:05.680 --> 0:21:08.879 And obviously it's written by the AI rally. You've corvered 0:21:08.880 --> 0:21:11.840