Speaker 1: From Mahard where Innovation of Money and Power.
Speaker 2: Collie in Silicon Valley, NBN.
Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 4: I'm Caroline Heidel, Blomberg's World headquarters in New York.
Speaker 5: And I'm Ed Ludlow in San Francisco. This is Bloomberg
Speaker 5: Technology coming up.
Speaker 4: We bring you the latest in markets. As in video Struggles,
Speaker 4: We're going to talk macro and micro and Nazi Curtain
Speaker 4: from Ulti Tenam and Global Pus.
Speaker 5: We had the latest from Washington is the Supreme Court
Speaker 5: sends social media laws back to lower courts.
Speaker 4: And Qualcom It's become the new front of shirt sponsor
Speaker 4: from Manchester United, are Chips the new crypto? We discussed
Speaker 4: that and so much more throughout the app. At first,
Speaker 4: we check in on these markets and we're struggling for direction.
Speaker 4: I think can be what's the read across We start
Speaker 4: the new half of the year and we're up about
Speaker 4: a tenth of per percent on the NASAT more broadly,
Speaker 4: but it seems to be the bomb market that's dictating
Speaker 4: some of that caution in the equity market yields for
Speaker 4: hire some eight basis points read that what you will,
Speaker 4: is that caution as to what's happening over in Europe?
Speaker 4: Is it worries about what's happening in the United States
Speaker 4: in terms of ultimately fiscal spending coming with whoever runs
Speaker 4: the country post November. And I think also what's happening though,
Speaker 4: is the political risk actually a bit of a relief
Speaker 4: over in France the CAC forty rising more than a
Speaker 4: percentage point as we do see perhaps a push to
Speaker 4: curtail what might be the most right winger policies that
Speaker 4: could be enacted over in France as many rush to
Speaker 4: see what happens in the second round of voting. We
Speaker 4: look at the economic effect, not the political. Let's have
Speaker 4: a look at what's happening in terms of crypto though,
Speaker 4: because the risk asider choice here on the Technology Show,
Speaker 4: we're not one point four percent seven and fifty five
Speaker 4: a bit of a risk on attitude when it comes
Speaker 4: to bitcoin ed but way off our high as a
Speaker 4: previous What are you watching on the micro.
Speaker 5: There's a lot going on throughout they how let's start
Speaker 5: with Nvidia. A headline hit just before we came on
Speaker 5: air from Reuters, citing anonymous sources that French antitrust regulated
Speaker 5: are getting ready to charge in video over anti competitive practices.
Speaker 5: You'll remember in September those dawn raids in Nvidia's French.
Speaker 2: Offices or facilities. We'll continue to track it.
Speaker 5: I'd point out the stock is off session lows, and
Speaker 5: broadly speaking, chip stocks are lower anyway, there's been some
Speaker 5: selling across the Philadelphia Semiconductor Index.
Speaker 2: But we'll continue one of that monitor that one. Tessa's
Speaker 2: going to give.
Speaker 5: Us second quarter delivery numbers at some point in the
Speaker 5: next twenty four to four eight hours. We'll go to
Speaker 5: Craigtrudell and preview those. And then there's the quod Con Manchester,
Speaker 5: United front of shirt sponsorship tie up. It says Snapdragon,
Speaker 5: and we'll show it to you later on. By the way,
Speaker 5: it's July first, so happy third quarter to Caroline. Happy
Speaker 5: second half of the year. We got a data guy
Speaker 5: at Bloomberg Technology, Terrell Holt, and he's put together this
Speaker 5: fantastic chart. This is the S ANDP five hundred and
Speaker 5: at the start of the year, the first half of
Speaker 5: twenty four, the S and P five hundred is up
Speaker 5: about fourteen percent, right, So he went back and crunched
Speaker 5: the numbers where the S and P five hundred has
Speaker 5: risen by double j in the first half of the year.
Speaker 5: More often than not, it's gone on to have some
Speaker 5: pretty big gains in the second half of the year.
Speaker 5: So that's kind of the question, right, what happens next
Speaker 5: as we enter this second half of twenty twenty four.
Speaker 5: This chart, based on history would indicate we continue to
Speaker 5: climb higher?
Speaker 6: Do we?
Speaker 4: Who knows, well, there's someone who might well know or
Speaker 4: at least can align our bets a little bit clearer.
Speaker 4: And Nacy Kerstin Global, CEO for ltttam and Global, which
Speaker 4: manages the seventy billion dollars in assets, and Nancy, you're
Speaker 4: such a voice for us when it comes to out
Speaker 4: of shin intelligence where it's hyperreality. And I'm interested as
Speaker 4: to whether you think the second half will bode well
Speaker 4: if you're long some of these names, like in Video
Speaker 4: and the chip stocks, well.
Speaker 2: Look Treestone quote at the sky.
Speaker 3: So we need to recognize that these stocks have run
Speaker 3: a lot already. Having said that, you know, in Video
Speaker 3: has got a lot of a sleeve in terms of
Speaker 3: new product development. Right, We've got Blackwell coming on in
Speaker 3: twenty twenty five We've got Reuben there after, and so
Speaker 3: there there's quite a lot of product development in Nvidia
Speaker 3: does enjoy a competitive mode in both software and hardware,
Speaker 3: and I think we're just beginning of the purchase of
Speaker 3: these GPU chips from governments and other sectors like healthcare,
Speaker 3: the automotive sector. So look at the end of the day,
Speaker 3: when a stock has risen one hundred and fifty percent,
Speaker 3: there can always be a pullback. But I would say
Speaker 3: we're still pretty early innings here on the Nvidia story now.
Speaker 5: As we've done a lot on the show of late
Speaker 5: about how difficult it is, particularly for the cell side,
Speaker 5: to forecast top line growth. You talked about Blackwell coming online.
Speaker 5: You're in the camp of people that says jen Ai
Speaker 5: is going to change everything, but it's not yet priced in.
Speaker 2: Which sectors is it not yet priced in?
Speaker 1: For?
Speaker 2: Where is that not yet being reflected?
Speaker 3: Well, I think given what we've seen in the first
Speaker 3: quarter and the second quarter, in particularly the Its States,
Speaker 3: the second quarter all led by the magnificent five so
Speaker 3: to speak. You know, Apple and Tesla obviously lagged a bit,
Speaker 3: but it was tech, tech and tech, and so I
Speaker 3: would say that Jenai has been priced in to a
Speaker 3: certain extent to those stocks. They certainly are recognized as
Speaker 3: Genai beneficiaries. But I think the interesting thing is.
Speaker 7: You know, Jenai is value added across every sector of
Speaker 7: the economy, or at least that's what we think, And therefore,
Speaker 7: looking ahead, we think Genai and its implications for innovation,
Speaker 7: cost savings, productivity improvements in other parts of the economy
Speaker 7: is not yet priced in, and in any event, our view.
Speaker 3: Is that earnings growth will broaden and deepen as the
Speaker 3: year progresses. It's still about tech in the second quarter,
Speaker 3: by the way, but as the year progresses, and we
Speaker 3: think that will lead to a broadening in market participation.
Speaker 3: So actually, many of our managers, remember we're open architecture
Speaker 3: at all ttsman have been reducing technology to the benefit
Speaker 3: to other sectors of the economy that will overtime benefit
Speaker 3: from Jenai. But also we think we'll see an acceleration
Speaker 3: and earnings growth as the year progresses, and frankly, trade
Speaker 3: on a more attractive valuation.
Speaker 4: Really important when it comes to publicly traded equities. Nancy, Well,
Speaker 4: what's so great about you is we can go cross
Speaker 4: assets as well and to private assets into non public companies.
Speaker 4: It's interesting. We recently had Youma Crossing Capital Advisors head
Speaker 4: on recently, who've done a partnership with Alti Tetaman to
Speaker 4: look at well private companies from an exity perspective, but
Speaker 4: you're looking at it from a debt perspective as well.
Speaker 4: Where should one be allocating into technology or more broadly.
Speaker 3: So in technology and more broadly, let's just take private
Speaker 3: credit by way of example. We think private credit is
Speaker 3: super interesting because there's a retrenchment happening on the part
Speaker 3: of the banks. Now you all saw the stress test
Speaker 3: last week. Banks need more capital. Well, Basel three will
Speaker 3: be punitive in terms of ongoing capital requirements. There's mark
Speaker 3: to market pressures on bank balance sheets, and of course
Speaker 3: small to medium sized banks commercial banks that have very
Speaker 3: high exposure of the commercial real estate sector have been
Speaker 3: withdrawing from lending to mention funding costs going up. Okay,
Speaker 3: so what's happening here? Banks are retrenching from lending, but
Speaker 3: marquee credit names are coming in and filling the void.
Speaker 3: We initially invested in what are called private lending direct
Speaker 3: lending strategies. More recently we're evolving and moving into what
Speaker 3: I call asset back lending strategies.
Speaker 2: Again, these are kind of almost.
Speaker 3: Investment grade or in another name, investment grade senior secured
Speaker 3: high up in the capital structure, and direct lendings about
Speaker 3: a two percent premium to high yield, whereas asset back
Speaker 3: lendings about four percent premium to high yield. And by
Speaker 3: the way, these are being offered to weld channels in
Speaker 3: sort of semi liquid form, so it's not hugely be
Speaker 3: liquid and that's important as well.
Speaker 5: Nancy, how is a presidential election in the United States
Speaker 5: going to impact the technology sector?
Speaker 2: Wow?
Speaker 3: Well, the presidential election in the United States got rather
Speaker 3: entertaining last Thursday in a sort of cringe way. Dare
Speaker 3: I say, you know, we've got a long way to
Speaker 3: go here before we know whether either candidate or obviously
Speaker 3: if there's a replacement for Biden remains.
Speaker 4: To be seen.
Speaker 3: But look, I think tech companies remain strong. Neither candidate
Speaker 3: is anti tech, they both recognize this is a significant
Speaker 3: competitive advantage to the United States. I don't see IRA
Speaker 3: or the CHIPSAC being rolled back under either candidate. Clearly
Speaker 3: not a president Biden wins. And these are all important
Speaker 3: supports for the tech sector that in addition to the
Speaker 3: fact that these technology companies you know, are spending huge
Speaker 3: amounts on jen Ai two hundred billion dollars the four
Speaker 3: largest tech companies. Of course they are capax is.
Speaker 2: In Video's revenue.
Speaker 3: And so we think that continues irrespective of who wins
Speaker 3: the election. Now, this is a sector that's not really
Speaker 3: impacted by the election. There's a real secular trend here.
Speaker 5: Nancy kurtn Avelti team and Global just incredible breadth of conversation.
Speaker 2: Thank you.
Speaker 5: Has turned back to some of the breaking news that
Speaker 5: happened out of Washington in the last out of the
Speaker 5: Supreme Court out with multiple decisions this morning. Let's start
Speaker 5: with the ruling on immunity for former President Trump. Joining
Speaker 5: us from DC. Bloomber's Kdie lines, Wow, you had to
Speaker 5: process a lot of information in a very short period
Speaker 5: of time. The immunity decision, please.
Speaker 8: Well, the immunity decision is a partial win for Donald
Speaker 8: Trump and a partial loss. Essentially, what the Supreme Court
Speaker 8: has ruled as that Donald Trump is immune from prosecution
Speaker 8: for official acts that he took while in office, not
Speaker 8: though for unofficial acts. And this Court, in a six
Speaker 8: to three ruling, the Conservatives ruling in the majority. The
Speaker 8: liberal justices dissenting has essentially set this now down to
Speaker 8: lower court, specifically Judge Tanya Chutkin, who is overseeing this
Speaker 8: case brought against him here in Washington related to twenty
Speaker 8: twenty election subversion.
Speaker 4: It will be up to that lower court to decide
Speaker 4: what is.
Speaker 8: An official and unofficial act within these four counts that
Speaker 8: Donald Trump has been indicted with. Effectively, what this accomplishes
Speaker 8: is not only setting a precedent for all future presidents
Speaker 8: of the United States, is this is not just about
Speaker 8: Donald Trump, but about presidential authority broadly. It also, though effectively,
Speaker 8: make sure that this case will not go to trial
Speaker 8: for Donald Trump before the election in November. Judge Chuckkin
Speaker 8: has said that the parties will have at least three
Speaker 8: months to prepare for a trial, and of course all
Speaker 8: of this official versus unofficial matter will have to be
Speaker 8: sorted out as well. So effectively, this does provide a
Speaker 8: win to Donald Trump in delaying that trial to the
Speaker 8: point where it likely will not happen before voters make
Speaker 8: their choice between Donald Trump and Joe Biden in November.
Speaker 8: Donald Trump, of course, has spoken on this today. He
Speaker 8: calls it a big win for a constitution and democracy
Speaker 8: and ted on true social He is proud to be
Speaker 8: an American.
Speaker 4: Katie, You're busy. The Lowa cults are busy. The low
Speaker 4: cults are going to be busy thinking about social media
Speaker 4: as well. New laws that wanted to be put in
Speaker 4: place in Texas and Florida go back that too.
Speaker 8: Yeah, this is an interesting and complicated opinion that the
Speaker 8: court also handed down.
Speaker 4: So they related to.
Speaker 8: These laws that both Texas and Florida estates have put
Speaker 8: into place restricting social social media companies ability to restrict
Speaker 8: content on their platform. Essentially, what the Court has ruled
Speaker 8: for is that those courts need to have their cases
Speaker 8: thrown out and relook at the First Amendment question here,
Speaker 8: which of course is really the crux of this case.
Speaker 8: What does and does not violate the First Amendment rights
Speaker 8: given by the US Constitution. So they're effectively kicking the
Speaker 8: can back down, not making a decisive ruling, just as
Speaker 8: they did similarly in a separate social media case ruling
Speaker 8: earlier this term, in which they essentially handed a win
Speaker 8: to the Biden administration not restricting its ability to communicate
Speaker 8: with social media platforms about content that should be taken down.
Speaker 8: But in that decision, while it was a win for
Speaker 8: the administration, they just said that the defendants who brought
Speaker 8: the case lacked the legal standing to do so. So
Speaker 8: both in this case today and that other social media
Speaker 8: related case, they aren't actually ruling on the merits on
Speaker 8: that key First Amendment question and what crosses the line
Speaker 8: as you're trying to combat misinformation but also don't want
Speaker 8: to restrict the right to free speech. The court hasn't
Speaker 8: ruled on those things. It's just telling other courts they
Speaker 8: need to do so.
Speaker 4: Again, Kaylee Lines, you always break it down so adequately.
Speaker 4: Thank you a lot to digest there. We appreciate it. Mean,
Speaker 4: while coming up, we're going to be turning our attention
Speaker 4: to the sharing of your cause. Andrey Hadad's been at
Speaker 4: it for a while, CEO of Turo. He's got an
Speaker 4: outlook on the travel industry and his company's latest product
Speaker 4: updates and what have you.
Speaker 2: Got some quick breaking news.
Speaker 5: CDK, which is the software platform that supports car auto dealers,
Speaker 5: has issued us statement saying it sees its systems being
Speaker 5: restored by early July fourth. This is the platform that
Speaker 5: is front and back office for car dealers that were
Speaker 5: subject to a hack.
Speaker 2: Really important.
Speaker 5: July fourth is a key sales period in the United
Speaker 5: States for cars, alongside with Memorial Day Labor Day.
Speaker 2: So that's the update.
Speaker 5: The systems will be restored by a July fourth, and
Speaker 5: that's what we're watching.
Speaker 2: Sick with us. This is Blimberg Technology.
Speaker 5: Let's talk about technology, travel and the transportation industry and
Speaker 5: how Touro is trying to disrupt it. The company recently
Speaker 5: shared over seventy seven zero product updates aiming to make
Speaker 5: the rental car experience smooth. Look for consumers here with
Speaker 5: more Toro CEO and j Hadad. So normally you would
Speaker 5: say I'm going to go to a certain place and
Speaker 5: I know the date I'm going and then I'm going
Speaker 5: to try and book an car. You've decided one of
Speaker 5: the things you want to change is that process. You
Speaker 5: want to pick the car and then work out the
Speaker 5: location and date later. Just explain how that's going to
Speaker 5: work in practice. First of all, thanks for having me
Speaker 5: on the show.
Speaker 9: We're very excited about what we're calling our limitless search capabilities.
Speaker 9: Just to give you a bit of context, you know,
Speaker 9: the business has grown quite a bit over the last
Speaker 9: few years and now we have over three hundred and
Speaker 9: seventy thousand active listings across sixteen hundred makes and models,
Speaker 9: and many of our customers have been asking us, well,
Speaker 9: it's great that we can search by destination and date.
Speaker 9: As if I am already keen on going on a
Speaker 9: trip and I know what my dates are, I know
Speaker 9: my destination, but I'd like you to show me all
Speaker 9: the great cars that you've.
Speaker 2: Got, so it's more experiential.
Speaker 5: It's to take a luxury car exactly, try and evy
Speaker 5: for the first time, exactly that exactly.
Speaker 9: So you know, now we've reached a critical mass in
Speaker 9: all of our markets that we thought this is the
Speaker 9: moment in time where we can launch this capability. Now,
Speaker 9: if you're looking to, you know, experience that cyber truck,
Speaker 9: or if you want to, you know, maybe test drive
Speaker 9: a Rivian before you buy it, you can actually find
Speaker 9: all of these cyber trucks and Rivians across the country
Speaker 9: and then you can decide where to go in order
Speaker 9: to do that.
Speaker 4: It's interesting that you bring up cyber truck, and it's
Speaker 4: interesting that at this moment you're also putting out a
Speaker 4: note trying to describe what the future transport looks like.
Speaker 4: And you've really articulated how Turo has been through the
Speaker 4: highs and the lows, and the macroheadwinds of COVID, of
Speaker 4: then everyone wanting to get back into revenge spending. We're
Speaker 4: also now looking at ultimately robotaxis. How will Turo still
Speaker 4: survive that pivot in the future.
Speaker 9: You're right, Carol, and it's been quite the roller coaster
Speaker 9: the last few years for travel and transportation. You know,
Speaker 9: COVID hit in twenty twenty, then of course there was
Speaker 9: the collapse of Big Rental in twenty twenty twenty one,
Speaker 9: the return of travel, the revenge travel, but also the
Speaker 9: automotive industry has been changing quite a bit over the
Speaker 9: last few years, and as you know, there's been tremendous
Speaker 9: inflation and the costs of car ownership and car insurance recently.
Speaker 9: So within that roller coaster of a ride over the
Speaker 9: last three years, we were very pleased with our performance
Speaker 9: as a company. We've increased our revenue by over four
Speaker 9: hundred percent from one hundred and fifty million twenty twenty
Speaker 9: to eight hundred and eighty million and twenty twenty three,
Speaker 9: we've increased the reach of our community of house and guests.
Speaker 9: So we're very pleased with our performance, but it's not
Speaker 9: the end of the disruption. You know, the disruption continues
Speaker 9: in the space, and we're very excited to be part
Speaker 9: of this new class of companies that are helping, you know,
Speaker 9: evolve the transportation and travel industries. We think actually autonomy
Speaker 9: is a great thing for the industry. We see the
Speaker 9: future where we have a lot of these you know,
Speaker 9: ride hailing short trips being delivered by autonomous services. You know,
Speaker 9: our business is much more related to much longer trips.
Speaker 9: Our users tend to book a car for four and
Speaker 9: a half day on average, and they drive almost two
Speaker 9: hundred miles a day. So this is a segment that
Speaker 9: is I think independent of the evolution of robotaxes.
Speaker 5: You if you look at third party data, are the
Speaker 5: bigger player of two, maybe three get around, there are
Speaker 5: some others out there. You've just talked about how much
Speaker 5: your business is ramped up. So as this tradition on
Speaker 5: Bloomberg Technology when a founder CEO comes in, how's going
Speaker 5: public going and when's it going to happen?
Speaker 9: I thought we're going to talk more about the seventy
Speaker 9: product releases.
Speaker 5: Today we talked about one of the seventy quite a
Speaker 5: lot of detail, but yeah, it all points the idea.
Speaker 5: You've got momentum and there a lot of interest in
Speaker 5: you guys for that reason as well.
Speaker 9: Yes, you know we're we're ready to go public. You
Speaker 9: know RS one is ready. We've updated a few times already,
Speaker 9: as you know, over the last few years. But as
Speaker 9: you know, the financial markets have not been very keen
Speaker 9: on IPOs over the last couple of years. So as
Speaker 9: soon as that changes, I think we're going to be ready.
Speaker 2: Andre Hadad Tour CEO.
Speaker 5: As you know, I've been a user of Toro, not
Speaker 5: just in the United States, elsewhere as well, and it's
Speaker 5: that experienced bit that maybe we'll try out next.
Speaker 2: Thank you for coming on the program.
Speaker 5: It's signed for Talking Tech and first up, Bridgewater turns
Speaker 5: to machine learning. The hedge fund Giant is set to
Speaker 5: debut a new fund that will use AI as the
Speaker 5: primary basis of its decision making. According to sources, the
Speaker 5: fund will debut with two billion dollars of capital starting
Speaker 5: today and will utilize models developed by open Ai, Anthropic
Speaker 5: and Perplexity, among others, plus Japan's H three rocket takes
Speaker 5: flight again.
Speaker 2: The Japan Aerospace Exploration.
Speaker 5: Agency saw a successful launch which carried a satellite toward
Speaker 5: low Earth orbit.
Speaker 2: It's the second launch for the H three this year,
Speaker 2: with no crew on board.
Speaker 5: The flight comes after numerous blunders and delays for the agency,
Speaker 5: including an explosion of its smaller Epsilon rocket in twenty
Speaker 5: twenty two. In Amazon calls from an AI startup, the
Speaker 5: online retailer has hired top executives and employees from adebt
Speaker 5: ai Labs in a move that bossters the development of
Speaker 5: an advanced version of AI that can think like a human.
Speaker 5: According to a memo provided to Bloomberg, Amazon, we use
Speaker 5: a debt tech to develop products that help automate software workflows.
Speaker 4: Caraenen and these acclahias are interesting. Meanwhile, let's go to
Speaker 4: France because, following months long battle over the future of
Speaker 4: the French IT firm atos it is once held as
Speaker 4: the rising star of the country's tech industry, and well
Speaker 4: now creditors are set to take control of the company,
Speaker 4: joining us Bloomberg's Erny Gassier Perez and you really look
Speaker 4: at the company from a stressed debt perspective. That's boy,
Speaker 4: was it distressed and now creditors are the ones that
Speaker 4: are going to be the savior's That's right.
Speaker 1: It's been a monslong negotiation. The company has started to
Speaker 1: discuss the situation with creditorss in February and we're nearing Yeah,
Speaker 1: it's in July already and we finally have an agreement
Speaker 1: in princip and now it's about other creditors joining this deal,
Speaker 1: you know.
Speaker 5: Rene Later in the show, we're going to talk about
Speaker 5: UAF Euro twenty twenty four, of which Atos is the
Speaker 5: official IT partner and one of its main sponsors. We're
Speaker 5: reflecting off air that like, this has been a wild battle.
Speaker 5: It's been a really difficult and ongoing situation. Even that
Speaker 5: our producer John Hyland was like, when does this end?
Speaker 5: You know, we've been covering this for a while. Is
Speaker 5: there a kind of line of sight to what happens next?
Speaker 1: Well, the restructuring should be wrapped up by the end
Speaker 1: of the year. What happens next Once the company has
Speaker 1: enough creditors agreeing to this signing the lock up, they
Speaker 1: start a cord process called the ask the court in
Speaker 1: France to start an accelerated soft guard, which allows a
Speaker 1: company to cram down dissenting creditors if there were any,
Speaker 1: and get the deal approved and that should happen by
Speaker 1: the end of the year.
Speaker 4: Looking at the deal, equity zilch zero goes to nothing,
Speaker 4: two point nine billion rows of loans and bonds are
Speaker 4: turned into equity, one point six eight billion euros of
Speaker 4: new debt injecting too one and thirty three million in
Speaker 4: new equity we understand, and perhaps looking at the deal
Speaker 4: to send part sell part of ATOS to the French government.
Speaker 1: Yes, exactly. So here the main argument is that creators
Speaker 1: like the company a lot, and they argue that well,
Speaker 1: they will sell it to the French government if it
Speaker 1: makes sense.
Speaker 2: Otherwise they're happy to keep it.
Speaker 1: They don't have any intention to move the headquarters from France.
Speaker 1: It will still be a French company, even if the
Speaker 1: revenue actually ninety percent of it it's out outside of France.
Speaker 1: But they plan to, you know, stick to it being
Speaker 1: a French company. And that's one of the things of
Speaker 1: the Critian scale for they didn't like they didn't want
Speaker 1: to split the company. So yeah, the plan for them
Speaker 1: is we will send operations if it makes sense. Otherwise
Speaker 1: we're happy to keep it together.
Speaker 4: How is the Renegacie Perez walking us through what has
Speaker 4: been long for that battle? Still some teas to cross
Speaker 4: to dot.
Speaker 5: Welcome back to Blimberg Technology. Ed Lovelow in San Francisco.
Speaker 4: Carolin Hired in New York. Let's get a quick check
Speaker 4: on these markets because we're being whipsawed by political acts,
Speaker 4: whether it's in France, whether it's in the United States.
Speaker 4: And yields have been pushing higher, but notably actually the
Speaker 4: Nasluca has found some resilience today in the face of
Speaker 4: yields pushing up some eight basis points in the tenure.
Speaker 4: Now's that one hundred up about tenth of a percent
Speaker 4: to start off the beginning of the new second half
Speaker 4: of the year, and we're up just the tenth percent.
Speaker 4: I remember we're selling off on Friday. We've got the
Speaker 4: cat forty up one point three percent. Closed trade. In Europe,
Speaker 4: we are seeing some signs of well relief post the
Speaker 4: first round of voting that happened in France and trying
Speaker 4: to understand whether or not we'll see some of the
Speaker 4: more significant right policies come in to act. We're currently
Speaker 4: at one point three percent. The euro also just a
Speaker 4: little bit stronger USUS US dollar. The dollar picked up
Speaker 4: steam though perhaps on some of the political anxiety here
Speaker 4: in the United States. Move on and look at some
Speaker 4: of the individual movers that we're looking at. On the
Speaker 4: day ed I want to shine on Videer. I mean,
Speaker 4: what toxy turvy day for the chip maker. We were
Speaker 4: down some two percent, we were dragging on the big benchmarks.
Speaker 4: Now we're currently up about three tens of percent, even
Speaker 4: as we get a Voiters report saying that maybe we're
Speaker 4: getting near an antitrust charge coming from France, we're currently
Speaker 4: those still managing to be resilient on this particular chip name.
Speaker 4: I'm looking at Chewy now off by five point nine percent. Again,
Speaker 4: a roller coaster ride for this particular name online if
Speaker 4: you're going to be getting into your food for your pets.
Speaker 4: But this is all about Keith Gill. This is about
Speaker 4: rowing Kitty, This is about Ryan Cohen not only being
Speaker 4: the leader of Gamestoppers, the co founder of Chewy. And
Speaker 4: now it looks as though we've got a big open interest,
Speaker 4: a big long coming from Keith Gill. But it's not
Speaker 4: enough to stabilize the stock on the longer term. I'm
Speaker 4: looking at byd I'm looking at the American depository desease
Speaker 4: for this Chinese carmaker, Bloomberg News getting the data that
Speaker 4: basically we've seen once again some record sales coming from
Speaker 4: this particular company, Hybrid, and indeed EV's doing very well.
Speaker 4: Why price cuts were up some eight tens of percent.
Speaker 4: But you're looking at EV's a little bit more.
Speaker 5: Yeah, Well, I'm looking at Tesla. It's up six percent
Speaker 5: in the session, which kind of came out of nowhere.
Speaker 5: That's it's fifth straight day of games, which unbelievably is
Speaker 5: its best winning streak in almost a year. The company
Speaker 5: is expected to post a drop in quarterly deliveries, its
Speaker 5: second consecutive coarsely decline doing both Creatrue Our Global Cars
Speaker 5: editor joins us out of London, and I'm looking at
Speaker 5: the markets, like Tesla's up a lot, and one of
Speaker 5: the logics appears to be that the domestic EV makers
Speaker 5: in China, Bid included are showing really strong data and
Speaker 5: so we might be extrapolating out.
Speaker 2: That Tesla does well there.
Speaker 5: Even overall we expect this kind of continued deceleration in growth.
Speaker 10: Also, maybe chuck this up to you know, if Keith
Speaker 10: Gill is back in the headlines. Maybe you know, one
Speaker 10: of the ultimate meme stocks is is you know, benefiting
Speaker 10: from meaningness. And you know, because really when you look
Speaker 10: at the fundamentals of this business, I mean, just one
Speaker 10: analyst after another has come out with a report, you know,
Speaker 10: of dialing back their expectations for this quarter's deliveries. We
Speaker 10: do see you know, monthly sales data out of China
Speaker 10: that has not been strong for Tesla in the first
Speaker 10: couple of months of this quarter. So I think, you know,
Speaker 10: the likelihood of a surprise you know, last month that
Speaker 10: sort of rescues the quarter for the company seems seems
Speaker 10: fairly remote.
Speaker 2: So you know, it really is a head scratcher.
Speaker 10: I think, you know, beyond just the the sort of
Speaker 10: you know, presence of of you know, a buillience among
Speaker 10: retail investors, maybe just also looking ahead to the Robotaxi
Speaker 10: that's coming out and that unveiling in August, it does.
Speaker 4: Feel like investors are wanting to go more long term
Speaker 4: viewpoint on this stock because the medium to short term
Speaker 4: is looking pretty ugly. Craig, and we're running out of excuses.
Speaker 4: You've got a great story out from the team really
Speaker 4: talking about four and forty one thousand evs being sold
Speaker 4: for the second quarter. Look, we can't blame Middle East
Speaker 4: in supply chain disruptions.
Speaker 10: Anymore, right, I mean, the company has you know, pointed
Speaker 10: to it did point to things in the first quarter
Speaker 10: that really affected you know, the more so the production side,
Speaker 10: and it was sort of reluctant to really speak to
Speaker 10: demand issues. And that's been you know, sort of Musk's
Speaker 10: mo o and and you know, to his credit for years,
Speaker 10: he was proven right that he had you know, plenty
Speaker 10: of demand to work with and that that was not
Speaker 10: the company's problem. I think, you know, we we see
Speaker 10: more and more evidence, you know, by the day that
Speaker 10: this is a company that does have demand issues, that
Speaker 10: you know, does have a bit of a tired lineup
Speaker 10: at this point and has a lot more competition to
Speaker 10: contend with it. It is still the case that the
Speaker 10: Model Y does incredible volume, but it's really tough to
Speaker 10: build on a year when that was the best selling
Speaker 10: vehicle in the world and you know, it's only gotten
Speaker 10: another year older. This was a vehicle after all, that
Speaker 10: debuted in the year twenty twenty, and so you know,
Speaker 10: generally around this time, you see you know, a refresh,
Speaker 10: which Musk has sort of ruled out. So you know
Speaker 10: what exactly this company does to sort of you know,
Speaker 10: touch off that next you know era of growth really
Speaker 10: still kind of remains to be seen because I think
Speaker 10: the expectation is that the Robotaxi is more of an
Speaker 10: idea and a concept as opposed to something that for
Speaker 10: the here and now and really the fundamentals of the business.
Speaker 4: We get those fundamentals tomorrow, Pretre Dow, thank you so much. Meanwhile,
Speaker 4: coming up, we're going to dig into the private side
Speaker 4: of the market. We're joined by IVP general partner Tom
Speaker 4: Lavara to discuss current investing trends and basically, are we
Speaker 4: out of the woods? Are we back to all risk
Speaker 4: on for CEOs? Right now we're talking to state as
Speaker 4: the software economy.
Speaker 1: ED.
Speaker 4: What are you watching?
Speaker 5: Oh, I've got some drama. I've got some activists drama.
Speaker 5: Take a look at Massimo health Tech Wearables. There's a
Speaker 5: regulatory filing out where basically the CEO of the company
Speaker 5: is saying that if an activist, which is poly Ten
Speaker 5: Capital Management, takes control and tries to remove CEO Jojiani,
Speaker 5: the COO says, I'll resign and is the headline of
Speaker 5: that chart shows a lot of the staff seem to
Speaker 5: agree with that position. A drop of seven point six
Speaker 5: is its biggest decline in eight weeks. But interesting, we
Speaker 5: have another activist situation on our hands, and on this
Speaker 5: program we like to track those.
Speaker 2: Stick with us.
Speaker 6: We'll be right back. BlueBag technology, let's.
Speaker 4: Talk artificial intelligence. K Health has just raised fifty million
Speaker 4: dollars in a funding round led by Clari Group, and
Speaker 4: the startup provides patients with a chatbot to make primary
Speaker 4: care busing more accessible. And the recent funding round is
Speaker 4: set the company's valuation about nine hundred million dollars. K
Speaker 4: Health co founder CEO along Block joins us now and
Speaker 4: I love the piece that we have from Marcello Clari
Speaker 4: basically saying I'm so done with a hyper round of AI.
Speaker 4: I want to see companies using it fixing a world problem.
Speaker 4: He says, you're doing it. How are you doing it?
Speaker 5: Well?
Speaker 11: We decided to focus on a big problem called primarycare.
Speaker 11: That's the access to healthcare. There's about a billion primarycare visitor.
Speaker 11: You're in America. People have chronic conditions, they are preventative needs,
Speaker 11: and they have acute care. And we built software that
Speaker 11: allows you to engage with patients and with your electronic
Speaker 11: medical records and with doctors, and it allows doctors to
Speaker 11: focus on making the decisions and engaging with patients. That's
Speaker 11: really really tough to do. You need to build a
Speaker 11: lot of intelligence into the system. But that allows health
Speaker 11: systems now to integrate AI and clinical AI in their
Speaker 11: day to day in their primary care. For example, we're
Speaker 11: integrated into secret SINAI, so we can manage you remotely
Speaker 11: with primary care, but we can also integrate you into
Speaker 11: specialist test labs in a world class health system.
Speaker 4: Now, people will recognize you because you're a COSEO of WIS.
Speaker 4: You're also co founder CEO of Room. You've been there,
Speaker 4: done that, taking companies public. I'm interested as to this
Speaker 4: particular problem that you're trying to solve. How are you
Speaker 4: seeing the efficiency gains? How are you measuring your success
Speaker 4: at this earlier stage other than being able to raise funds.
Speaker 11: I think that's a great question. I think think the
Speaker 11: main focus always needs to be on quality. It needs
Speaker 11: to be better quality. And everybody always complains about healthcare
Speaker 11: so expensive. It's so tough to be in front of doctors,
Speaker 11: so there's three things we look at. First's quality. Can
Speaker 11: we make the doctor's life easier? Do they need to
Speaker 11: spend much less time collecting information organizing it? Imagine having
Speaker 11: this really smart resident there who prepared everything there. Now
Speaker 11: the doctor can come in, can focus on the judgment,
Speaker 11: can focus on the patient. So you're saving a lot
Speaker 11: of times of productivity. Improvements are large. And then there's
Speaker 11: also access. We provide a twenty four seven just like
Speaker 11: you'd want to get from your health system, and it
Speaker 11: needs to be grounded in your electronic magnanical record. We
Speaker 11: need to be able to provide you personalize there medicine.
Speaker 11: So you need to bring all those pieces together and
Speaker 11: they need to go hand in hand.
Speaker 5: And critically, the point with k help is that the diagnosis,
Speaker 5: treatment or onward referral to a specialist is still determined
Speaker 5: by a human being. But are you able to share
Speaker 5: any data about the sort of success rates of treatment?
Speaker 5: By using the platform and then having a means for
Speaker 5: a doctor to say, Okay, this is the patient before me,
Speaker 5: this is the information I have available, this is what
Speaker 5: we're going to do.
Speaker 11: Well, we can see everything anonymously that the doctor does,
Speaker 11: and we can learn from it. Bear in mind the
Speaker 11: new things could happen, and new symptoms can appear down
Speaker 11: the road. Sometimes doctors change the diagnosis. So yes, you're right,
Speaker 11: the doctors are making the diagnosis and treatment decisions. But
Speaker 11: we're letting doctors essentially have a copilot that does a
Speaker 11: lot of the basic work but also some of the
Speaker 11: nuance insights that can help doctors make decisions. And then
Speaker 11: we have this look back, the ability to look at
Speaker 11: outcome data and see the patients regularly. When you work,
Speaker 11: for example, in Cedar Sinai where we're integrated, you are
Speaker 11: getting an aside primary care just like anywhere else. It's
Speaker 11: just twenty four to seven, and you can manage this
Speaker 11: directly and you can get again the prescription, the referral,
Speaker 11: anything else you'd expect the need, but now you have
Speaker 11: just much more convenience and all you need is your insurance.
Speaker 5: Alum block k Health CEO. It's an interesting case study.
Speaker 5: We are hearing it more often this kind of service
Speaker 5: in the healthcare industry in the United States.
Speaker 2: Thank you, Thank you time.
Speaker 5: Let's keep a conversation going and discuss trends in the world.
Speaker 5: A venture capital and VC backed startups, the macro environments
Speaker 5: impact on startups and a lot more. With returning to
Speaker 5: the show, IVP General Partner Tom Lavero, you know, it
Speaker 5: seems a strange place to start, but quite a lot
Speaker 5: has changed since you were lost on the program, a
Speaker 5: lot of it driven by AI. The economy has changed
Speaker 5: and we are bracing for a presidential election this country.
Speaker 5: In Europe as something similar is happening. How's things going.
Speaker 5: It's been a rough couple of years for startups.
Speaker 2: That's a nice way to start the conversation, Tom, Thank you.
Speaker 2: It's the truth.
Speaker 12: That's my job, get out there in front of founders
Speaker 12: and tell them how it is. It's been a rough
Speaker 12: couple of years. There's been a lot of startup shutdowns layoffs,
Speaker 12: but things are changing.
Speaker 5: You have been, as you do, regularly penning your thoughts,
Speaker 5: posting kind of thought pieces to social media. We've taken
Speaker 5: one from LinkedIn, for example, and you're arguing it's time
Speaker 5: for offense. So no matter how bleak things might seem,
Speaker 5: you seem to believe that it's time to fight back.
Speaker 12: If you're a startup or a founder, founders need to
Speaker 12: anticipate where things are going, and I firmly believe right
Speaker 12: now the winds are shifting and the economy is getting better,
Speaker 12: and startup founders can't wait for the economic data from
Speaker 12: twelve months ago to decide to try and beat their competition,
Speaker 12: grow a little faster, hire more people.
Speaker 2: I think right now is the perfect time.
Speaker 1: Tom.
Speaker 4: You like putting your thoughts, as we said to social media,
Speaker 4: and previously you were calling for a mass extinction event,
Speaker 4: and so we've kind of got to rate the wisdom
Speaker 4: with which we should see your current viewpoint with how
Speaker 4: it turned out in twenty twenty three, twenty twenty four,
Speaker 4: How was that mass extinction? Did it bear in the
Speaker 4: way that you thought it would do? Companies manage to
Speaker 4: succeed and muddle through more than you want topated.
Speaker 2: Yeah.
Speaker 12: I think that piece really resonated with the founders and
Speaker 12: the startup ecosystem because we were able to express something
Speaker 12: out loud. A lot of them were thinking privately. And
Speaker 12: if you objectively look at the data from the past
Speaker 12: couple of years, startup shutdowns are up between three and
Speaker 12: ten x. Layoffs are a huge multiple of what they
Speaker 12: were before the zero interest rate environment. By every measure,
Speaker 12: it's been a startup extinction event out there, but.
Speaker 4: Some companies have done well. Notably, some have actually managed
Speaker 4: to sell themselves. One of your own portfodio companies actually
Speaker 4: caught being brought by IBM. What's interesting is we're hearing
Speaker 4: more and more in the AI sphere the companies are
Speaker 4: looking for mergers. They can't always sustain themselves. Are you
Speaker 4: seeing that among your portfolio companies that they're either able
Speaker 4: to buy others or we're seeing more M and A
Speaker 4: within the private markets.
Speaker 12: Yeah, I think M and A feels like it's beginning
Speaker 12: to worm up. The big acquirers. The major public companies
Speaker 12: seem to be putting out feelers, starting conversations for the
Speaker 12: first time in a while. I think that's because startup
Speaker 12: expectations are more reasonable than they were during that zero
Speaker 12: interest rate environment, but their stock prices franklier backups, so
Speaker 12: they're feeling a little bit more confident about acquiring smaller
Speaker 12: startups that are probably not profitable. And then now they
Speaker 12: have a real reason to go and make acquisitions, which
Speaker 12: is AI. There's this platform shift they know they need
Speaker 12: to be part of, and the startups tend to move
Speaker 12: faster in that realm.
Speaker 5: Reading your work, I am going to channel my inner
Speaker 5: Tom Keen, Tom Keane, longtime story, Bloomberg anchor, And it's
Speaker 5: like it's like Darwin and Wallace natural selection. You're basically
Speaker 5: saying between twenty twenty and twenty twenty three things were
Speaker 5: very bad, but actually what happened was good startups survive,
Speaker 5: the others rule killed. So that's a nice market to have.
Speaker 5: You only have good things in front of you, basically,
Speaker 5: Is that fair?
Speaker 2: Yeah?
Speaker 12: I mean, and if you can have money in a
Speaker 12: good business during a downturn, it's the best time to build.
Speaker 12: But I think founders sometimes lose track of where we
Speaker 12: are with the economy, a little bit of like Stockholm syndrome,
Speaker 12: where you get so used to being in a down
Speaker 12: economy you forget to go on offense. And that's what
Speaker 12: the latest piece is about. It's hey, founders, the economy
Speaker 12: really is better. It's okay to start thinking aggressively again.
Speaker 12: Don't go to the extremes of burning way too much
Speaker 12: money and being efficient. But let's let's think about offense again,
Speaker 12: because startups naturally need to be on offense if you're
Speaker 12: not somebody else's om navera.
Speaker 4: We thank you so much for coming back on IVP
Speaker 4: general partner and all things offense. Let's talk chips because
Speaker 4: sk Heinex it's the semiconductor arm of the SK Group.
Speaker 4: It's plan to invest close to seventy five billion dollars
Speaker 4: through twenty twenty eight. I'm scoring the conglomerates met on,
Speaker 4: a sector considers crucial for future proof it's businesses. Now,
Speaker 4: the group says about eighty percent of this sum will
Speaker 4: be allocated to do investing in You guessed it, your
Speaker 4: favorite ED high and width memory chips. What are you
Speaker 4: looking at?
Speaker 5: Qualcomm has become the new front of shirt sponsor for
Speaker 5: Manchester United football club. This the company's latest attempt to
Speaker 5: boost awareness of it's snap Dragon brand among consumers amid
Speaker 5: a broader push into personal computing.
Speaker 2: And here to not only discuss.
Speaker 5: This massive commercial deal but also illustrate demonstrate it is
Speaker 5: Bloomberg's only in king who leads our semiconductor coverage and
Speaker 5: just so happens to be a Manchester United fan.
Speaker 2: But there it is. You know, it's something that you
Speaker 2: just didn't think you'd ever see. But for Qualcom, this.
Speaker 13: Is a big, big deal, right, So this is not
Speaker 13: even just the company name, this is their brand. This
Speaker 13: is them trying to do something that they've really been
Speaker 13: trying to do for ten years and not making a
Speaker 13: lot of progress in and now they're saying, look, this
Speaker 13: is how committed we are, this is what we're prepared
Speaker 13: to put money behind. And obviously this is a very
Speaker 13: big brand.
Speaker 4: How much money are we talking in they want?
Speaker 13: Neither side will tell us, but we have a report
Speaker 13: saying about seventy five million dollars a year and it's
Speaker 13: going to probably stretch over five years.
Speaker 2: Director Alice, you know, just try and get this I
Speaker 2: hold up from it.
Speaker 5: There you go.
Speaker 2: I mean, the point is is that it's a chip.
Speaker 5: It's a semiconductor Historically that Quodcom's put into smartphones. There's
Speaker 5: an AI story with it. Now there's a cult following
Speaker 5: around it. Just explain its next iteration.
Speaker 13: Yeah, I mean, the most important thing here is they
Speaker 13: want They've been trying to get their chips into laptops
Speaker 13: for a long time. Hasn't really happened. Now they're saying
Speaker 13: new AI software will help them to do that. But
Speaker 13: what's happening behind the scenes. The kind of giant elephant
Speaker 13: in the room here, Like Manchester United in the nineties,
Speaker 13: a very successful team is Intel. Intel have dominated this
Speaker 13: market not only with their products but with their brand,
Speaker 13: right that anybody who's trying to get into laptops has
Speaker 13: to take on the Intel Inside brand.
Speaker 2: And this is what Qualcom is trying to.
Speaker 13: Do with this and other efforts.
Speaker 4: Ah, just that word takes me back to the Beckham
Speaker 4: documentary and when all feel good factors around, whether it's England,
Speaker 4: whether it's man you. I mean, I think Eric Canton
Speaker 4: has had something to do with the marketing of all
Speaker 4: of this, and just how many of these technames or
Speaker 4: US tech names are going into sports like this to
Speaker 4: big up their name. How much do you see chips
Speaker 4: more broadly get into the world of football or soccer.
Speaker 13: Yeah, I mean it's it's different. I mean, it's an
Speaker 13: ingredient brand. So it's always been sort of a one
Speaker 13: step back. Intel were the ones that really broke that
Speaker 13: with the Intel Inside campaign and really pushed the idea
Speaker 13: that hey, you don't buy something for the company that
Speaker 13: makes it, you buy something because of what's inside it.
Speaker 13: And Qualcom are trying to make that next step. They're
Speaker 13: the first. We say, other companies sort of flirt with this,
Speaker 13: but this is probably the biggest effort we've seen so
Speaker 13: far to really get a content brand, a content sort
Speaker 13: of product in front of real consumers who ultimately be
Speaker 13: the onecom.
Speaker 5: Saying that one Premier League home game will have the
Speaker 5: same value to them is spending on a Super Bowl ad.
Speaker 5: That's what we're talking about, Bluemoc and King incredible reporting.
Speaker 2: Thank you.
Speaker 5: I just got back from vacation and when I was
Speaker 5: in Europe a couple of weeks ago, I noticed that
Speaker 5: in the midst of celebrations around the UA for European
Speaker 5: Football Tournament, something else is part of the landscape.
Speaker 2: Karen.
Speaker 5: That is Chinese technology companies being sponsors Evmaker byd Ali Express,
Speaker 5: Ali Pay, and it's in this era of increasing tech
Speaker 5: competition between the US and China. I just was so
Speaker 5: surprised to see these names so present on the football
Speaker 5: broadcast from the.
Speaker 2: BBC ITV in Europe.
Speaker 5: I was in mainland Europe looking at a continental Europe.
Speaker 2: What do you make of that?
Speaker 4: So what previously it was crypto names all sponsoring shirts.
Speaker 4: Now it's chips and it's also Chinese e commerce. But
Speaker 4: just the amount that they're spending end here, how much
Speaker 4: do they need to build on the app downloads to
Speaker 4: be able to vindicate the sort of marketing spend on
Speaker 4: uofa game.
Speaker 5: So this is definitely about going after the European market.
Speaker 5: But the interesting comparison is Timu. Remember Timu did a
Speaker 5: lot of ads around the Super Bowl in twenty twenty three.
Speaker 5: They saw in massive surge in downloads of their app
Speaker 5: and then activity in that market. So you look at
Speaker 5: Ali Express as an example, they're clearly hoping for the
Speaker 5: same byd the doors closed for them here in the
Speaker 5: United States, but in Europe one percent of the EV market,
Speaker 5: there's a lot for them to play for.
Speaker 4: So who have they been sponsoring in Which games? Were
Speaker 4: you shouting at the TV in a bar or Barbara
Speaker 4: at home?
Speaker 2: That's what's so astonishing.
Speaker 5: All the games they're in the live broadcast of all
Speaker 5: the games irrespect of which German, Italian, French, UK broadcasts
Speaker 5: you watched, But when I got back, Fox Sports has
Speaker 5: the rights to the Euros here and you can still
Speaker 5: see them through that as well.
Speaker 2: So it is everywhere they want.
Speaker 4: To be omniscient, omnipotent. We do it all here on
Speaker 4: Bloomberg Technology, particularly Sports and Tech.
Speaker 9: We thank you.
Speaker 4: That's for this edition of Bloomberg Technology, though ed we
Speaker 4: didn't get to talk about.
Speaker 5: It would incredible amount of breaking news as well, so
Speaker 5: there's a lot to recap do so on the podcast.
Speaker 5: You know exactly where to find it, Apple, Spotify, iHeart,
Speaker 5: and the Bloomberg platforms from New York and San Francisco.
Speaker 2: This is Bloomberg Technology.