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Speaker 1: From Mahart. We're Innovation of Money and Power Collie in

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Speaker 1: Silicon Valley, NBN.

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Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 3: I'm Caroline Heinder, Bluemog's World TAD quarters in New York.

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Speaker 3: Ed Ludlow, who's on assignment in some valley.

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Speaker 4: This is Bloomberg Technology. Coming up.

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Speaker 3: We'll bring you the latest on microsoft sixty nine billion

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Speaker 3: dollar deal for Activision as.

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Speaker 4: As companies they get a new shot at winning over

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Speaker 4: the UK on the acquisition.

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Speaker 3: Plus, we'll speak to one analyst who says metas threads

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Speaker 3: look at add what eight billion dollars in revenue per

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Speaker 3: year in the next couple of years. We'll discuss and

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Speaker 3: the big four accounting firm KPMG and partners with Microsoft

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Speaker 3: for a multi billion dollar partnership to incorporate you guessed

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Speaker 3: it during to of AI into its business. We sit

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Speaker 3: down with the KPMG CEO, Paul club Over. In the UK,

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Speaker 3: the Antitrust Watchdog has said that a new merger investigation

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Speaker 3: into Microsoft's sixty nine million Activision deal when it may

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Speaker 3: be needed if the duo restructure their deal to try

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Speaker 3: and reverse that previous UK veto for more. Let's bring

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Speaker 3: in bloombergs Ley and Nylan, who's just been all across

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Speaker 3: the competition analysis of this deal, And I mean, is

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Speaker 3: this a good thing to go back to square one.

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Speaker 5: In this case? It actually is. So the UK had

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Speaker 5: vetoed Microsoft and Activision before effectively blocking the deal, but

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Speaker 5: after yesterday when a US court said the deal can

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Speaker 5: move forward, the UK sort of agreed to give it

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Speaker 5: a second look, which is pretty unheard of. But in

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Speaker 5: order to do that, they said Microsoft and Activision need

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Speaker 5: to restructure it a little, so they're not looking at

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Speaker 5: exactly the same thing. So Microsoft and Activision are going

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Speaker 5: to make an offer to the UK and sort of

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Speaker 5: restart negotiations over whether they might approve their deal.

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Speaker 3: But in many ways people have sort of said that

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Speaker 3: the FTC and I'VE regulators have got a bit of

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Speaker 3: a win on their hands already because they have force

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Speaker 3: changes to the way in which well competitors might be

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Speaker 3: able to access the games eventually owned by Microsoft, called

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Speaker 3: a duty being the key one. What are the ways

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Speaker 3: could they alleviate any anxiety around a lack of competition?

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Speaker 5: Yeah, so this is one of the things that the

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Speaker 5: judge here in the US made a big point of

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Speaker 5: is that the regulators had already won a little bit

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Speaker 5: by getting Microsoft to offer these ten year deals to

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Speaker 5: a lot of its rivals. So those deals they have

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Speaker 5: with like Nintendo and Valve, the PC gaming company, and

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Speaker 5: they've also offered them to some of the people who

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Speaker 5: do streaming streaming games as well. But the thing about

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Speaker 5: the UKCMA is they really hate what they call behavioral remedies.

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Speaker 5: So like when a company is just offering to do

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Speaker 5: something like a ten year contract, they want something what

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Speaker 5: they call structural, So they want Microsoft or Activision to

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Speaker 5: actually offer to sell something off. So Microsoft and Activision

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Speaker 5: are now sort of in the position of trying to

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Speaker 5: decide what it is that they might be willing to

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Speaker 5: sort of, you know, cleave off from their main deal

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Speaker 5: in order to sort of play kate UK regulators overall.

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Speaker 3: Does this feel once again that kind of big text

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Speaker 3: almost winning here in terms of getting these deals through.

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Speaker 5: That's a good question. I mean, the FTC is expected

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Speaker 5: to appeal as soon as this afternoon, so it's not

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Speaker 5: technically over here in the US, but yeah, I mean,

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Speaker 5: the antitrust laws are definitely not really able to take

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Speaker 5: on the tech stuff. You know, we already had the

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Speaker 5: FTC losing earlier this year in the Meta within case.

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Speaker 5: Although the difference with the UK is, you know, they

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Speaker 5: have a little bit of a better law, it's a

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Speaker 5: little bit harder to appeal, So you had them blocking

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Speaker 5: Meta Giffee. So Meta is now actually going to have

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Speaker 5: to spin off Giffee, even though the CMA was the

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Speaker 5: only place in the world that had to pose that deal.

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Speaker 3: Interesting this backward look at some of these big Dealslea

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Speaker 3: and Ilan, thank you so much for bringing it to us.

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Speaker 3: And interestingly we go to dig into Meta in particular.

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Speaker 3: We just finished that conversation earlier on Meta. Let's dig

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Speaker 3: into that company in particular, because we have been all

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Speaker 3: over Threads.

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Speaker 4: Of course, more than one hundred million people signing up.

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Speaker 4: I'm sure plenty more than that now and.

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Speaker 3: It is sort of for many becoming a Twitter alternative

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Speaker 3: and add on and over the next couple of years,

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Speaker 3: one analyst sees that Threads can reach close to two

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Speaker 3: hundred million daily active users and generate well about eight

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Speaker 3: billion dollars in an annual revenue. Joining us now is

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Speaker 3: that analyst Mart Mahoney ever caught II Sceenior Managing Director.

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Speaker 3: You've now form rating on Meta three hund and fifty

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Speaker 3: dollars price target.

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Speaker 4: Interestingly, it's no longer your number.

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Speaker 3: One top pick because of the rampant, rapid rise in

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Speaker 3: the share price that we have seen on the back

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Speaker 3: of this year.

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Speaker 4: Really, but mark the threads.

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Speaker 3: Eight billion sounds like a lot, but it's not compared

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Speaker 3: to the annual revenue in total.

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Speaker 6: Yes, well all there.

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Speaker 2: I agree with Carolina, like where you are set it up?

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Speaker 2: Could they get the eight billion in revenue? One of

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Speaker 2: the biggest, the easiest part of their math, if you will,

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Speaker 2: is the revenue that they could get per user. On Twitter,

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Speaker 2: as a documented history, they were generating about twenty dollars

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Speaker 2: in ad revenue per user Meta. Facebook also has a

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Speaker 2: documented history here they've been able to generate monetization levels

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Speaker 2: two to three x that of Twitter. And I don't

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Speaker 2: think it's because they spam ads all over the user.

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Speaker 6: Interface a little. Maybe they do a little of that.

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Speaker 2: It's because they are much better at targeting and matching

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Speaker 2: advertisers with users. They are able to find relevant audiences

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Speaker 2: for advertisers and marketers can put relevant ads against and

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Speaker 2: they're able to track.

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Speaker 6: The performance of those.

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Speaker 2: That's why you've got almost ten million advertisers that are

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Speaker 2: on There's a lot of these are small businesses obviously.

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Speaker 6: That are on Meta.

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Speaker 2: So yeah, they'll be able to better monetize if they

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Speaker 2: get the users. The question is whether they will or

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Speaker 2: not be at one hundred million ramp is outstanding.

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Speaker 4: When do you think we might see that switched on?

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Speaker 3: We know Mark Zuckerberg himself and we've heard from Amasara

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Speaker 3: as well saying, look, we're not going to think about

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Speaker 3: putting the advertising out there until we have a line

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Speaker 3: of sight on a billion users. Do you think that's

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Speaker 3: really what they're going to.

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Speaker 6: Be I take him at their word on that.

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Speaker 2: Since these numbers that we're talking about, even that eight billion,

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Speaker 2: I know that sounds like a big number.

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Speaker 6: That's only kind of a mid single digit percent.

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Speaker 2: Impact FREMDA, So it's not like they need the ad

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Speaker 2: revenue near term. In fact, I think the absolute genius

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Speaker 2: strategy here would be show no ads, you know, like,

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Speaker 2: bring more and more users onto Threads and what the

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Speaker 2: Threads experience has got to improve dramatically. I assume it will.

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Speaker 2: I assume they'll be easier for us to use it.

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Speaker 2: For the great things that we've used Twitter for in

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Speaker 2: the past. When Uber cfo the news came out that

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Speaker 2: he may be resigning. If you go to Twitter, if

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Speaker 2: you'd gone to Twitter, you would have found plenty of

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Speaker 2: relevant news articles about it.

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Speaker 6: If you've gone the threads, you wouldn't have.

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Speaker 2: Seen anything like there's that real time news element that's

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Speaker 2: really great magical about Twitter. So there's some of that

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Speaker 2: that needs to be built at threads. When I just

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Speaker 2: find interesting to set up here for meta is I

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Speaker 2: think Twitter as an asset has been fundamentally underinvested in

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Speaker 2: for a couple of years, not just since Musk took

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Speaker 2: over the company, but for a couple of years, both

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Speaker 2: on the advertiser side and on the user side. That

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Speaker 2: created the opportunity for Threads that can just bring in

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Speaker 2: so many new users from its existing database.

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Speaker 6: It's existing user base, it one and a half billion users.

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Speaker 4: Well, the race is now on.

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Speaker 3: Therefore, and it feels as though Twitter has been making

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Speaker 3: changes in terms of brand safety to a large extent,

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Speaker 3: and at the same time they've got this sort of

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Speaker 3: window before meta does turn on the advertising switch. To

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Speaker 3: an extent, how much do you think you know Twitter

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Speaker 3: is so embedded as our lifestyle and our use case.

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Speaker 3: Can Threads really keep the site gest going.

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Speaker 1: Well?

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Speaker 6: I guess we should if we.

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Speaker 2: I think the sober assessment is we should assume that

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Speaker 2: Twitter will be the leading real time news public town

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Speaker 2: square communications platform for the next five to ten years.

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Speaker 2: They probably will maintain that leading position. But it's so

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Speaker 2: interesting that there's this opening created, so it is possible

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Speaker 2: that Threads they can come up with a better product.

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Speaker 2: It's not better than the Twitter now, but could.

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Speaker 6: They make one that's better. They certainly have the potential

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Speaker 6: to do that.

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Speaker 2: They've got the engineering talent to do that, and they

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Speaker 2: can certainly bring in a lot more users.

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Speaker 6: And there's a.

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Speaker 2: Couple of really simple things that they've done. I mean,

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Speaker 2: you think about the challenges that Twitter has had. It's

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Speaker 2: onboarding challenge for a lot of people is real, like

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Speaker 2: what do I get out of Twitter? It just seems

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Speaker 2: like a delusion of information? How do I find something useful?

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Speaker 2: I think Threads has made it easy for people to

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Speaker 2: come in to find followers and to find people to follow,

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Speaker 2: either friends, people that they know, and then and they've

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Speaker 2: done it in a way that maybe seems more I

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Speaker 2: don't know, user friendly, that's less caustic as an environment.

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Speaker 2: That's something that still needs to be addressed on Twitter.

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Speaker 2: It's been a long standing battle on Twitter how to

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Speaker 2: get some of that uncivil commentary off the site.

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Speaker 6: So there's a real opportunity here for threads. That's what

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Speaker 6: I'm more intrigued by.

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Speaker 2: It's all potential, But these one hundred million users in

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Speaker 2: less than a week, we've never seen that before.

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Speaker 3: Mark here we have a conversation about competition being added

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Speaker 3: for many, it's a worry about competition being taken away.

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Speaker 3: I'm thinking of Meta is I think in a closed

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Speaker 3: room tomorrow and the EU having to try and vindicate

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Speaker 3: marketplace in particular, and how they haven't reduced unfairly competition there.

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Speaker 3: How much is regulation aheadwind to all of the big

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Speaker 3: tech names right now?

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Speaker 2: It's going to be a constant presence, constant headwind going forwards.

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Speaker 2: If I simplify all this, Caroline, I think about three

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Speaker 2: types of regulation. There's kind of monopoly power regulation, privacy,

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Speaker 2: and then.

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Speaker 6: Third is kind of social health kind of sort of regulation.

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Speaker 2: When it comes to Meta, there's no monopoly regulatory risk.

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Speaker 2: I mean, if there was a real if there really

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Speaker 2: was a monopolistic power at Facebook, you never would have

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Speaker 2: had TikTok. We obviously had TikTok, so that if there's

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Speaker 2: a new social media there's nothing to stop people from

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Speaker 2: creating a new social media outlet and.

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Speaker 6: For driving traffic there if they have a really good service.

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Speaker 2: TikTok prove that the other issues are more serious, the

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Speaker 2: privacy issues. But I think Facebook has kind of come around,

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Speaker 2: it's relatively reasonably address that.

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Speaker 6: And the social health impact of Facebook that's waxed. And

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Speaker 6: when I think we had a point where we over.

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Speaker 2: Dramatized, dramatize the impact of social media on social health,

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Speaker 2: there are plenty of other parts of media that have

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Speaker 2: positive and negative impacts on social health. So I just

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Speaker 2: sort of think we've moved away from that. Maybe we've

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Speaker 2: also matured a little bit how we think about those risks,

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Speaker 2: So they're going to be long standing. It comes with

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Speaker 2: the territory because you've just invited everybody to make a comment, and.

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Speaker 6: Not all those comments are going to be good.

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Speaker 4: Mam Ma Hainey have a core II analyst.

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Speaker 3: We didn't even get onto your uber perspective. Your top

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Speaker 3: pick interesting on the Domino's News today. We thank you

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Speaker 3: so much, of course, Mart mahoney for evercre is. I meanwhile,

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Speaker 3: coming up, I've got to discuss that big deal KPMG

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Speaker 3: and Microsoft entering a multi year, multi billion dollar AI

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Speaker 3: and cloud services agreement.

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Speaker 4: We discuss the.

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Speaker 3: Announcement next KPMGCO booknot And meanwhile, let's just look at

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Speaker 3: what's happening with Shopify out more than a percent. But

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Speaker 3: let's go to the nitty gritty. They fascinate story that

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Speaker 3: this company is basically putting a price tag on time.

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Speaker 3: Rolling out calculator embedded in your calendar if you're an

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Speaker 3: employee there then estimates the cost of.

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Speaker 4: Any meeting of three or more people.

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Speaker 3: Basically, the company's new internal tool is trying to push

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Speaker 3: you to be more productive take away what they project

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Speaker 3: to be three hundred and twenty two thousand hours of

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Speaker 3: meetings this year by basically putting a price tag on it.

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Speaker 4: It's expensive, folks. This Bloomberg.

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Speaker 3: Both for accounting firm KPMG has just announced a multimillion

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Speaker 3: dollar commitment in Microsoft cloud and AI services over the

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Speaker 3: next five years, and it's expected though to bring in

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Speaker 3: more than twelve billion dollars in ALID revenue. Joining us

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Speaker 3: now to discuss the partnership as Paul Knups KBMG CEO

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Speaker 3: and so talk to us this commitment, but to bring

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Speaker 3: more in I'm assuming this is all a productivity boost.

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Speaker 1: Well, you know, you think about the velocity of change

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Speaker 1: right now, Caroline, and the speed of innovation and generative AI.

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Speaker 1: Many of us weren't even talking about it nine months ago,

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Speaker 1: and now it's all anybody wants to talk about. It's

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Speaker 1: amazing that veloci of change and speed of innovation. So

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Speaker 1: to co develop solutions with Microsoft for all of our businesses, AUTIT,

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Speaker 1: taxs and advisory that we can bring to market. Some

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Speaker 1: of the solutions already under development and some are in

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Speaker 1: nascent stages, but we're really excited about the power of

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Speaker 1: that partnership or we can bring to market in the

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Speaker 1: future working together with Microsoft. So we'll spend two billion,

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Speaker 1: Our invest two billion over the next five years on

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Speaker 1: AI and cloud, and we expect to generate about twelve

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Speaker 1: billion dollars of additional revenue over the next several years

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Speaker 1: through cybersecurity solutions, through cloud migration, and also through new

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Speaker 1: innovative applications that use GENERAI.

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Speaker 3: So with your own workforce, having the early access to

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Speaker 3: Microso three sixty five copilot the Azuo Open AI service. Ultimately,

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Speaker 3: will you have a competitive edge? Will others follow your lead?

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Speaker 3: Will they also do deals with Microsoft?

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Speaker 1: So there's no doubt they will. This is not an

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Speaker 1: exclusive arrangement, and we are going to be investing in

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Speaker 1: generative AI across the board, so we're looking for additional opportunities.

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Speaker 1: But we think our long standing relationship with Microsoft, which

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Speaker 1: dates back to two thousand and our history of working

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Speaker 1: with them as a partner, even going to market with

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Speaker 1: them with twenty five hundred clients as joint clients, that

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Speaker 1: we have an edge in the sense that we have

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Speaker 1: that long, strong history of development and we're going to

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Speaker 1: idate with them the power of their technology with the

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Speaker 1: power of our knowledge experience in advisory, tax auditing is

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Speaker 1: a really great combination for ensuring that we can solve

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Speaker 1: our clients' most complex problems that actually also help our

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Speaker 1: communities in society be better.

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Speaker 3: How are you selling this to your workforce because a

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Speaker 3: lot of anxiety is out there that AI is going

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Speaker 3: to take our jobs.

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Speaker 7: Right.

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Speaker 1: Well, if I look at the forty years I've been

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Speaker 1: at KPMG and I think about the history of technology,

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Speaker 1: I haven't seen a technology disruption. I think this is

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Speaker 1: the greatest technology disruption in many decades. I haven't seen

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Speaker 1: one yet that's caused a loss of workforce on a

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Speaker 1: growth space. It's on a net basis. So I actually

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Speaker 1: believe that workforces over time will grow with generative AI.

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Speaker 1: We're going to need more people to interpret results, to

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Speaker 1: co develop solutions, to develop solutions. We need more data scientists.

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Speaker 1: We're going to need a lot of quality and cyber

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Speaker 1: assessments of the information that the generative AI applications produce.

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Speaker 1: So as I think about that history of technology disruption

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Speaker 1: and what it's done to workforce, it's actually generated economic

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Speaker 1: activity that should allow for us to grow our workforces

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Speaker 1: in the future and actually also put some of those

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Speaker 1: mundane routine tasks that people don't enjoy doing and upscale

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Speaker 1: people to do more interesting, creative things.

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Speaker 3: And you've been out to the executives that you work

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Speaker 3: for the clients, and they seem to agree. They're also saying, look,

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Speaker 3: this is actually going to add to employees, this is

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Speaker 3: going to add to our productivity. That's right.

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Speaker 1: So you know, we just completed surveyed recently where eighty

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Speaker 1: percent of executives said that this would be a major

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Speaker 1: disruption seventy five percent. It's be their top emerging technology

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Speaker 1: for the next eighteen months. And there's general agreement too

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Speaker 1: that was going to add headcount over time. So we

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Speaker 1: feel pretty confident that it will also reduce stress because

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Speaker 1: some of these mundane task again will no longer have

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Speaker 1: to be done by people, and they can then provide

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Speaker 1: more value added advice, do more creative things in the

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Speaker 1: work environment.

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Speaker 4: He as to having more exciting work. I'm excited. I'm interested.

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Speaker 3: Though you've readferenced cyber and the way in which you're

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Speaker 3: going to be using general to AI. There a lot

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Speaker 3: of the worries, and there's been this quick adoption by

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Speaker 3: companies to use open AI team with Microsoft, but they

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Speaker 3: don't want their own workforce using it because they're worried

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Speaker 3: about their own data and it's somehow ending up in

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Speaker 3: the data tropes that are going to be in my

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Speaker 3: own chat GIPT.

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Speaker 4: How have you dealt with that? The privacy angle.

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Speaker 1: So when we use a chat GPT version, we use

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Speaker 1: it in our own secure environment, not the open source

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Speaker 1: application that's out there, which provides a lot of protection.

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Speaker 1: And we also really value the enterprise protection security that

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Speaker 1: Microsoft brings to us. So we want to use AI responsibly,

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Speaker 1: ethically and in a very secure environment. As we develop

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Speaker 1: these solutions, we're going to ensure that companies have that

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Speaker 1: same kind of security, governance and architecture built around their solutions.

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Speaker 1: That's going to be very important for the future because

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Speaker 1: there are those concerns along with concerns around data accuracy too.

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Speaker 3: Well, we continue to see how that is monitored and

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Speaker 3: improved on and iterated and as you say, a big

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Speaker 3: disruption that we're in. Thank you so much coming on

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Speaker 3: and talking about the deal. Surely is the KPMGCO.

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Speaker 4: Time.

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Speaker 3: Now I'm talking tech first. Up China based hackers. They've

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Speaker 3: reached a series of email accounts link to government agencies

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Speaker 3: in the US and Europe. Now the hackers accessed and

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Speaker 3: exported unclassified Microsoft data number of accounts plaus Chip designer

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Speaker 3: ARM is in talks within Vidia to join a group

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Speaker 3: of potential investors to anchor its initial public offering. According

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Speaker 3: to the Financial Times, now in Video, which is a

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Speaker 3: long time partner of ARM, is seeming to invest in

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Speaker 3: a valuation of thirty five to.

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Speaker 4: Forty billion dollars as being reported.

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Speaker 3: Meanwhile, in a Musk will hold an event broadcast on

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Speaker 3: Twitter spaces focused on artificial intelligence, and he's invited two

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Speaker 3: prominent US House warmakers, Democrat and Republican state leaders.

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Speaker 4: We'll speak with.

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Speaker 3: Musk for about forty five minutes tonight some pm Eastern time,

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Speaker 3: mean while.

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Speaker 4: Let's talk about AI a little bit.

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Speaker 3: More, because today's big take how AI can make politics

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Speaker 3: more dangerous, with AI holding the potential to supercharged dissemination

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Speaker 3: of misinformation in political campaigns, among other things, we really

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Speaker 3: want to dig into that, the highs, the lows of

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Speaker 3: aiding bags emily bound for more great peace and at

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Speaker 3: this moment, how we already seeing AI sort of becoming

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Speaker 3: involved in campaigns already.

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Speaker 7: We absolutely are. We're seeing it from the local level,

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Speaker 7: the state level, and we're definitely seeing it at the

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Speaker 7: federal and international level. So there have been instances of

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Speaker 7: pretty convincing deep bakes, so that is pictures and videos

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Speaker 7: that aren't real but look very real circulating in campaigns,

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Speaker 7: you know, up and down the board.

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Speaker 3: We're also, though, of course, going to sort of supercharge

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Speaker 3: not only potential disinformation, but go supercharge the workers who

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Speaker 3: are trying.

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Speaker 4: To activate campaigns as well.

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Speaker 3: How are we already see sort of productivity being top

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Speaker 3: at the moment.

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Speaker 8: Yeah.

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Speaker 7: So for the big take piece I've published today, Laura

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Speaker 7: Davison and I talked with congressional staffers, campaigns staffers, lobbyists,

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Speaker 7: and politicians, So the people who make up to Washington

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Speaker 7: and ask them, how are you using AI? And we

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Speaker 7: found it's already being used in a really widespread way.

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Speaker 7: So lobbyists are using it to create the first drafts

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Speaker 7: of campaigns. Congressional staffers are using it just to get

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Speaker 7: the first draft on a page of speeches. The generative

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Speaker 7: AI still isn't sophisticated enough to write bills, but we're

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Speaker 7: not that far off.

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Speaker 3: Okay, So look, there are some positives to all of this,

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Speaker 3: but Washington in and of itself is also iying AI

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Speaker 3: and the regulation of AI pretty seriously. Can they tackle

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Speaker 3: its own influence within their own sphere of political campaigns.

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Speaker 4: Yeah.

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Speaker 7: Senate Majority Leader Chuck Schumer just today said that this

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Speaker 7: is going to be one of the most difficult challenges

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Speaker 7: that Congress has ever faced, is trying to regulate this

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Speaker 7: very complicated and nascent technology. They're right now just sort

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Speaker 7: of in the talking phase. They're having briefings to get

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Speaker 7: lawmakers up to speed with what AI is, how it's

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Speaker 7: being used by our federal agencies, and how it's being

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Speaker 7: deployed by the tech sector. So we're still very early on,

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Speaker 7: but they really don't want to repeat the mistakes that

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Speaker 7: they need with social media, where they were kind of

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Speaker 7: asleep at the wheels. Social media grew and grew and

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Speaker 7: now it's a pretty much an unregulated space.

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Speaker 3: Amni Bambaum, great, big take, go read it online for

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Speaker 3: I feel like enough to have a terminal.

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Speaker 4: Thank you very much.

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Speaker 3: Indeed, welcome back to Blue Meg Technology. I'm Caroline hid

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Speaker 3: in New York. We won't we want to talk a

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Speaker 3: little bit more about Microsoft and Activision Blizzard. We can

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Speaker 3: start with perhaps the way in which gamers are being affected.

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Speaker 3: We're worried about competition. Who are playing the games. Hispanic

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Speaker 3: Black Americans are actually playing video games more than other

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Speaker 3: ethnic groups might have been considered, according to an annual study.

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Speaker 3: There's changes that stereotype that largely as white Americans that

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Speaker 3: are the industry's most enthusiastic consumers. Joining us on this

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Speaker 3: and indeed the deal more broadly for Activision and the

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Speaker 3: competition out there being to Cecilia Dinestasio, We're so pleased

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Speaker 3: to have you in the brit studio and first of all,

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Speaker 3: debunks and myths for us who are playing these games.

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Speaker 4: Who is worried? Who is anxious about how they get

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Speaker 4: access to Cool of Duty?

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Speaker 5: Yeah, that's a great question. So it is true.

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Speaker 9: The stereotype is true that most gamers are white and men.

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Speaker 9: Seventy two percent of gamers are white men. However, white

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Speaker 9: Americans are not the most likely people to be playing

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Speaker 9: games in the US. A new study from the Entertainment

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Speaker 9: Software Association showed that Americans who are Latino, who are black,

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Speaker 9: who are Asian American are significantly more likely than white

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Speaker 9: Americans to be playing video games like Call of Duty.

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Speaker 3: We've known that more women are playing in various whether

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Speaker 3: it's on mobile or on console. Is that being reflected

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Speaker 3: in the games? Is that more diversity within the characters

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Speaker 3: that are being played?

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Speaker 9: About half of gamers are women, that's true, and increasingly

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Speaker 9: gaming companies are realizing that it's productive to their bottom

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Speaker 9: line to make games that really appeal to a wider

440
00:21:50,560 --> 00:21:54,600
Speaker 9: audience than traditional and so we're seeing more protagonists in

441
00:21:54,720 --> 00:21:55,480
Speaker 9: triple A games.

442
00:21:55,520 --> 00:21:56,919
Speaker 5: These blockbuster games who.

443
00:21:56,800 --> 00:21:59,080
Speaker 9: Are women who are non white, and that's something that's

444
00:21:59,080 --> 00:22:02,040
Speaker 9: been really celebrated across the gaming industry and also brought

445
00:22:02,080 --> 00:22:03,480
Speaker 9: a lot of new gamers into the fold.

446
00:22:04,000 --> 00:22:07,080
Speaker 3: Let's talk about whose console you might be playing and

447
00:22:07,480 --> 00:22:09,720
Speaker 3: what's been so interesting as we go through the twists

448
00:22:09,760 --> 00:22:12,879
Speaker 3: and in terms of the Microsoft Activision deal, is it

449
00:22:12,960 --> 00:22:16,480
Speaker 3: seems as though, I say, Sony's stranglehold on consoles has

450
00:22:16,520 --> 00:22:18,919
Speaker 3: in launch pop been why Microsoft's allowed to make this.

451
00:22:19,000 --> 00:22:21,040
Speaker 4: Deal, right, Yeah, it's really interesting.

452
00:22:21,080 --> 00:22:23,040
Speaker 9: Microsoft has argued for a long time that it's had

453
00:22:23,080 --> 00:22:25,320
Speaker 9: a third place in the console wars, the so called

454
00:22:25,359 --> 00:22:29,560
Speaker 9: console wars between Sony its PlayStation, Nintendo its Switch, and

455
00:22:29,640 --> 00:22:32,840
Speaker 9: then Microsoft with its Xbox console. And Microsoft has been

456
00:22:32,920 --> 00:22:36,119
Speaker 9: working very hard to diversify outside of just its console business,

457
00:22:36,560 --> 00:22:40,760
Speaker 9: including through its PC gaming offering the Xbox App on

458
00:22:40,840 --> 00:22:43,440
Speaker 9: PC and also cloud gaming, which allows people to play

459
00:22:43,520 --> 00:22:46,400
Speaker 9: Microsoft's games across mobile devices, tablets.

460
00:22:46,000 --> 00:22:46,720
Speaker 4: Smart TVs.

461
00:22:47,359 --> 00:22:52,200
Speaker 9: And at the same time, what the FTC determined yesterday

462
00:22:52,680 --> 00:22:55,399
Speaker 9: is that actually, when it comes to call of duty,

463
00:22:56,000 --> 00:23:00,240
Speaker 9: Microsoft isn't really incentivized to block off the game from

464
00:23:00,320 --> 00:23:03,720
Speaker 9: competitors like Sony because Microsoft actually, in a large way

465
00:23:03,800 --> 00:23:07,520
Speaker 9: relies on Sony consumers PlayStation gamers to play Call of

466
00:23:07,640 --> 00:23:08,919
Speaker 9: Duty with people.

467
00:23:08,760 --> 00:23:12,720
Speaker 4: On Xbox, so for now, clearly in their interest. Great

468
00:23:12,720 --> 00:23:13,000
Speaker 4: to have you.

469
00:23:13,080 --> 00:23:15,840
Speaker 3: Thank you for breaking it all down, Cecilia Dinastasio, with

470
00:23:16,000 --> 00:23:18,200
Speaker 3: all that great reporting. Meanwhile, let's stick on the deal,

471
00:23:18,480 --> 00:23:20,680
Speaker 3: whether or not Microsoft is eventually going to be able

472
00:23:20,880 --> 00:23:24,000
Speaker 3: to get its hands on Activision for sure. Britain's antitrust

473
00:23:24,080 --> 00:23:27,240
Speaker 3: watchdog said that a new merger investigation into that sixty

474
00:23:27,359 --> 00:23:30,159
Speaker 3: nine million dollar deal may be needed to reverse its

475
00:23:30,240 --> 00:23:32,760
Speaker 3: previous veto joining US now for more about this, as

476
00:23:32,800 --> 00:23:36,000
Speaker 3: Public Knowledge policy director and competition Charlotte Slayman, thank you

477
00:23:36,080 --> 00:23:37,600
Speaker 3: so much, Charlotte for joining us. And of course you

478
00:23:37,640 --> 00:23:40,480
Speaker 3: have a history of working with the FDC, you understand

479
00:23:40,680 --> 00:23:43,639
Speaker 3: some of the concerns around competition. When you saw that

480
00:23:43,960 --> 00:23:46,640
Speaker 3: the particularly the judge in the US in San Francisco

481
00:23:46,800 --> 00:23:49,680
Speaker 3: had given the clear for now in the US at least,

482
00:23:49,880 --> 00:23:50,440
Speaker 3: what did you think.

483
00:23:52,240 --> 00:23:55,760
Speaker 10: It's a disappointing result for consumers. You know, once the

484
00:23:55,920 --> 00:23:59,280
Speaker 10: FTC brought this case, we were really hoping that it

485
00:23:59,440 --> 00:24:02,480
Speaker 10: was gonna be a win on the preliminary injunction. I

486
00:24:02,600 --> 00:24:05,120
Speaker 10: do think the FTC might continue to fight the case.

487
00:24:05,800 --> 00:24:07,320
Speaker 10: But this is certainly a loss.

488
00:24:08,000 --> 00:24:11,639
Speaker 3: Okay, interesting and I where's many have felt that actually,

489
00:24:11,760 --> 00:24:13,760
Speaker 3: even though the FDC lost in this way, they have

490
00:24:14,000 --> 00:24:17,040
Speaker 3: managed to force the hand of Microsoft to make some changes,

491
00:24:17,119 --> 00:24:22,040
Speaker 3: and indeed so have UK regulators. Do you think why

492
00:24:22,160 --> 00:24:24,160
Speaker 3: don't you, for example, think that that's been enough.

493
00:24:25,720 --> 00:24:28,480
Speaker 10: Yes, and there's also a settlement in the European Union

494
00:24:29,160 --> 00:24:32,439
Speaker 10: where they're going to be giving some licenses for other

495
00:24:32,520 --> 00:24:35,240
Speaker 10: cloud gaming services to be able to use Call of Duty.

496
00:24:36,000 --> 00:24:39,440
Speaker 10: So that's great, that's progress, But we would still be

497
00:24:39,640 --> 00:24:42,680
Speaker 10: concerned about the competitive impacts of the merger. You know,

498
00:24:42,800 --> 00:24:45,720
Speaker 10: it's not just about Call of Duty. It's also about

499
00:24:45,800 --> 00:24:50,560
Speaker 10: the next big game. And I'm concerned about independent gamers,

500
00:24:51,320 --> 00:24:55,480
Speaker 10: independent games studios having the same opportunities to reach customers

501
00:24:55,920 --> 00:24:58,520
Speaker 10: and for those gamers to have access to those games.

502
00:24:59,320 --> 00:25:02,760
Speaker 10: So there are to be broader anti competitive impacts that

503
00:25:02,840 --> 00:25:05,880
Speaker 10: we're concerned about, and I think Call of Duty isn't

504
00:25:05,920 --> 00:25:07,959
Speaker 10: the only thing that needs to be fixed.

505
00:25:08,119 --> 00:25:10,880
Speaker 3: And of course, as you mentioned, deal hasn't yet done.

506
00:25:11,000 --> 00:25:13,720
Speaker 3: FTC could appeal. We also know that the UK they

507
00:25:13,800 --> 00:25:16,720
Speaker 3: might have to stop from basically scratch once again, coming

508
00:25:17,200 --> 00:25:20,280
Speaker 3: with different ways in which they can alleviate the previous

509
00:25:20,400 --> 00:25:23,639
Speaker 3: veto to the deal. What could they do do you think, Charlotte,

510
00:25:23,640 --> 00:25:25,240
Speaker 3: to alleviate some of those concerns that you have.

511
00:25:27,400 --> 00:25:30,640
Speaker 10: Well, I think it would be very difficult to address

512
00:25:30,760 --> 00:25:37,640
Speaker 10: this merger with behavioral remedies. With a settlement. I think

513
00:25:37,680 --> 00:25:41,040
Speaker 10: that's still on the table. But you know, those settlements

514
00:25:41,080 --> 00:25:44,680
Speaker 10: are often time limited. The settlement in the European Union

515
00:25:44,840 --> 00:25:46,960
Speaker 10: is for ten years. Now, a lot can happen in

516
00:25:47,080 --> 00:25:50,439
Speaker 10: ten years. There could be innovation and new competitors coming up.

517
00:25:51,200 --> 00:25:54,240
Speaker 10: But I think about past mergers where we've seen a

518
00:25:54,400 --> 00:25:58,160
Speaker 10: ten year settlement agreement and that ten years actually ends

519
00:25:58,240 --> 00:26:00,800
Speaker 10: up going by really fast, and then consumers are left

520
00:26:00,840 --> 00:26:04,399
Speaker 10: with a more consolidated market. So I think enforcers need

521
00:26:04,440 --> 00:26:07,640
Speaker 10: to be really careful in making sure that they're only

522
00:26:07,680 --> 00:26:10,040
Speaker 10: agreeing to a settlement that is really going to solve

523
00:26:10,080 --> 00:26:10,560
Speaker 10: the problem.

524
00:26:10,720 --> 00:26:13,200
Speaker 3: And sort of here in lies if you look at history,

525
00:26:13,560 --> 00:26:15,640
Speaker 3: what the FDC is trying to do. They're almost trying

526
00:26:15,680 --> 00:26:20,080
Speaker 3: to unwind the shift of this particular regulatory authority and

527
00:26:20,119 --> 00:26:22,239
Speaker 3: the way in which it views deals and the way

528
00:26:22,280 --> 00:26:27,240
Speaker 3: in which it views the adverse effects of polygopolies or

529
00:26:27,280 --> 00:26:30,479
Speaker 3: monopolies or size and scale, because it isn't just all

530
00:26:30,520 --> 00:26:33,520
Speaker 3: about consumer and prices. It's about more than that. It

531
00:26:33,600 --> 00:26:36,600
Speaker 3: feels like for the current guys of the FTC, are

532
00:26:36,680 --> 00:26:39,359
Speaker 3: they going about this is Lena Khan, to put it blunly,

533
00:26:39,840 --> 00:26:42,040
Speaker 3: going about this the right way to take on these

534
00:26:42,160 --> 00:26:45,320
Speaker 3: big deals. Try and take big hits and then be

535
00:26:45,440 --> 00:26:46,000
Speaker 3: losing them.

536
00:26:48,000 --> 00:26:50,920
Speaker 10: Well, of course it would be better to win, but

537
00:26:51,160 --> 00:26:54,240
Speaker 10: when you take on those big hard cases, you're going

538
00:26:54,320 --> 00:26:57,920
Speaker 10: to have some losses. And I think you know, we

539
00:26:58,040 --> 00:27:00,600
Speaker 10: all know that that is part of it may end

540
00:27:00,680 --> 00:27:04,240
Speaker 10: up being a long process. I've been really frustrated that

541
00:27:04,400 --> 00:27:08,119
Speaker 10: Congress hasn't gotten more involved, because that is what we

542
00:27:08,280 --> 00:27:12,280
Speaker 10: really need. These cases are showing that the law isn't

543
00:27:12,280 --> 00:27:14,919
Speaker 10: where it needs to be, and so we really need

544
00:27:15,040 --> 00:27:17,840
Speaker 10: Congress to be able to act. There was so much

545
00:27:17,960 --> 00:27:22,320
Speaker 10: attention and excitement about antitrust in Congress last year, and

546
00:27:22,800 --> 00:27:25,359
Speaker 10: it didn't come to fruition. They didn't pass any new

547
00:27:25,400 --> 00:27:28,879
Speaker 10: anti trust legislation except to give more funding to the agencies.

548
00:27:29,200 --> 00:27:32,040
Speaker 10: We really need stronger anti trust laws in the US

549
00:27:32,119 --> 00:27:34,359
Speaker 10: to be able to have competitive markets.

550
00:27:34,200 --> 00:27:37,360
Speaker 3: Some would say, but that's on Congress. Potentially in the UK.

551
00:27:37,600 --> 00:27:41,239
Speaker 3: What model do you want to see what changes from

552
00:27:41,280 --> 00:27:42,120
Speaker 3: a legal perspective.

553
00:27:43,640 --> 00:27:46,440
Speaker 10: Yes, So, in particular with this case, it seemed like

554
00:27:46,560 --> 00:27:48,639
Speaker 10: the court got tripped up on the idea of a

555
00:27:48,760 --> 00:27:53,520
Speaker 10: vertical merger. So it's not a traditional horizontal merger where

556
00:27:53,640 --> 00:27:57,000
Speaker 10: maybe a game studio is buying a game studio. This

557
00:27:57,400 --> 00:28:01,160
Speaker 10: was a provider of consoles, subscription service and cloud gaming

558
00:28:01,240 --> 00:28:04,280
Speaker 10: buying a game studio. So the court saw it as

559
00:28:04,280 --> 00:28:07,040
Speaker 10: a vertical merger and talked a lot about how vertical

560
00:28:07,119 --> 00:28:11,440
Speaker 10: mergers may have pro competitive benefits and are rarely stopped,

561
00:28:12,400 --> 00:28:14,880
Speaker 10: But that is not the same as having a presumption

562
00:28:15,040 --> 00:28:18,479
Speaker 10: in the law in favor of vertical mergers. Vertical mergers

563
00:28:18,520 --> 00:28:22,000
Speaker 10: can be illegal under antitrust law, but it's clear from

564
00:28:22,080 --> 00:28:24,560
Speaker 10: this judge and others that that needs to be more clear.

565
00:28:25,200 --> 00:28:29,080
Speaker 10: The FTC is working right now on new merger guidelines,

566
00:28:29,480 --> 00:28:31,520
Speaker 10: and I think that will be an opportunity for them

567
00:28:31,760 --> 00:28:35,679
Speaker 10: to educate judges and make this more clear that vertical

568
00:28:35,760 --> 00:28:38,560
Speaker 10: mergers can be really harmful. But that's also an area

569
00:28:38,640 --> 00:28:39,680
Speaker 10: that Congress could help with.

570
00:28:40,520 --> 00:28:43,320
Speaker 3: Could that not just be politicized though, because many would

571
00:28:43,320 --> 00:28:47,719
Speaker 3: see this as a relatively Democrat heavy FTC.

572
00:28:49,880 --> 00:28:53,160
Speaker 10: Well certainly there are no Republican commissioners at the FTC

573
00:28:53,360 --> 00:28:56,440
Speaker 10: right now, but I think again that's on the Republicans

574
00:28:56,480 --> 00:29:00,239
Speaker 10: in Congress who need to move forward with that has

575
00:29:00,320 --> 00:29:04,280
Speaker 10: been a lot of bipartisan interest, especially last Congress there

576
00:29:04,320 --> 00:29:09,280
Speaker 10: were multiple bipartisan bills that passed through the Judiciary Committee

577
00:29:09,320 --> 00:29:13,240
Speaker 10: with bipartisan votes. So I think Republicans are also interested

578
00:29:13,280 --> 00:29:16,800
Speaker 10: in antitrust enforcement. They're recognizing that that's actually how we

579
00:29:16,920 --> 00:29:19,080
Speaker 10: get a free market functioning correctly.

580
00:29:19,800 --> 00:29:21,840
Speaker 3: Charlotte, it's great to get your tak Thank you so much,

581
00:29:21,880 --> 00:29:24,200
Speaker 3: of course your previous expertise while working there to see

582
00:29:24,240 --> 00:29:27,600
Speaker 3: and now with Public Knowledge and Policy director there Charlotte Slim,

583
00:29:27,680 --> 00:29:31,000
Speaker 3: thank you. Coming up, thank you, Let's discuss how American

584
00:29:31,120 --> 00:29:33,440
Speaker 3: Express let's try to take on the world with the

585
00:29:33,480 --> 00:29:37,080
Speaker 3: helplesome FinTechs. We're on that next with Amex's Raymond Shova.

586
00:29:37,480 --> 00:29:50,680
Speaker 3: This is Blomberg. So it's been four years since an

587
00:29:50,680 --> 00:29:53,400
Speaker 3: American Express claimed its cards are now accepted at just

588
00:29:53,440 --> 00:29:56,000
Speaker 3: as many places as rivals Visa MasterCard right here in

589
00:29:56,000 --> 00:29:58,239
Speaker 3: the US. But it's now looking to do something very

590
00:29:58,280 --> 00:30:01,120
Speaker 3: similar overseas and to that, and it's been partnering with

591
00:30:01,160 --> 00:30:03,560
Speaker 3: some of the world's biggest fintech companies, the latest being

592
00:30:03,640 --> 00:30:05,959
Speaker 3: world Pay, which will help it sign and manage new

593
00:30:06,040 --> 00:30:09,800
Speaker 3: merchants to accept American Express. More broadly, in the United Kingdom,

594
00:30:10,080 --> 00:30:13,080
Speaker 3: I can Express, Group President of Global Merchant and Network Services.

595
00:30:13,160 --> 00:30:15,800
Speaker 4: That's Raymond Jobar joins us now for more.

596
00:30:15,880 --> 00:30:18,520
Speaker 3: Raymond, you are the man who basically goes around getting

597
00:30:18,560 --> 00:30:21,400
Speaker 3: merchants to take AMEX and look, this must be a

598
00:30:21,440 --> 00:30:23,080
Speaker 3: big deal to get world pay. Has this been the

599
00:30:23,200 --> 00:30:25,480
Speaker 3: theme to ensure that the likes of Stripe and the

600
00:30:25,640 --> 00:30:28,560
Speaker 3: likes of Square are enabling my ability to use ames

601
00:30:28,640 --> 00:30:30,960
Speaker 3: in the UK not only in.

602
00:30:30,960 --> 00:30:33,320
Speaker 6: The UK Caroline, but around the globe.

603
00:30:34,160 --> 00:30:37,680
Speaker 8: Partnerships with third party processors and FinTechs like Square, Stripe

604
00:30:37,760 --> 00:30:40,720
Speaker 8: and Addie and world Pay, they really have been helping

605
00:30:40,760 --> 00:30:43,560
Speaker 8: to fuel our growth. They represent eighty percent of the

606
00:30:43,600 --> 00:30:48,080
Speaker 8: merchants that we have on our network and represent twenty

607
00:30:48,120 --> 00:30:50,960
Speaker 8: percent of the overall volume. But it's growing really, really

608
00:30:51,120 --> 00:30:54,200
Speaker 8: rapidly and gives card members far more confidence to pull

609
00:30:54,200 --> 00:30:56,040
Speaker 8: out their card at the point of sale and feel

610
00:30:56,080 --> 00:30:57,320
Speaker 8: comfortable that it'll be accepted.

611
00:30:57,840 --> 00:31:00,360
Speaker 3: FinTechs have really therefore managed sort of accelerate this, but

612
00:31:00,400 --> 00:31:03,640
Speaker 3: there's also been on the ground getting salespeople in front

613
00:31:03,680 --> 00:31:06,200
Speaker 3: of certain types of merchants to bring them round to

614
00:31:06,280 --> 00:31:06,920
Speaker 3: using AMEX.

615
00:31:07,240 --> 00:31:08,400
Speaker 4: How has that role gone?

616
00:31:08,480 --> 00:31:11,360
Speaker 3: What kind of companies, what kind of sellers are coming

617
00:31:11,520 --> 00:31:12,160
Speaker 3: to your platform?

618
00:31:13,120 --> 00:31:15,360
Speaker 8: Well, what we started on this journey a number of

619
00:31:15,440 --> 00:31:17,800
Speaker 8: years ago in response to our car members. Our origins

620
00:31:17,840 --> 00:31:22,720
Speaker 8: are primarily around travel and entertainment, and what we recognize

621
00:31:22,720 --> 00:31:24,560
Speaker 8: as our car members wanted to use their cars far

622
00:31:24,640 --> 00:31:27,520
Speaker 8: more places we provide rich incentives for them to use it,

623
00:31:28,000 --> 00:31:29,760
Speaker 8: and in response to that, we needed to move into

624
00:31:29,920 --> 00:31:34,080
Speaker 8: everyday spend categories, a lot of smaller shops in retail.

625
00:31:34,240 --> 00:31:37,200
Speaker 8: And as we started down that journey, we deployed what

626
00:31:37,280 --> 00:31:41,560
Speaker 8: we call a hybrid acquiring model that means our proprietary

627
00:31:41,640 --> 00:31:44,320
Speaker 8: teams signed and manage the largest merchants, let's say the

628
00:31:44,400 --> 00:31:47,440
Speaker 8: twenty five percent of the merchants that represent eighty percent

629
00:31:47,480 --> 00:31:50,680
Speaker 8: about eighty percent of our volume, and then we deployed partners,

630
00:31:50,760 --> 00:31:54,120
Speaker 8: both traditional third party processors as well as FinTechs to

631
00:31:54,200 --> 00:31:56,840
Speaker 8: go out and sign and manage that long tail. And

632
00:31:56,960 --> 00:32:00,880
Speaker 8: it's been a terrific growth story. Since twenty eighteen, we've

633
00:32:00,920 --> 00:32:03,480
Speaker 8: more than tripled the number of locations that are accepting

634
00:32:03,600 --> 00:32:07,320
Speaker 8: American Express, and that gives card members far more confidence

635
00:32:07,440 --> 00:32:07,840
Speaker 8: to pull.

636
00:32:07,720 --> 00:32:08,280
Speaker 1: Out their card.

637
00:32:08,400 --> 00:32:11,800
Speaker 8: And we have the desire to eliminate the question do

638
00:32:11,840 --> 00:32:13,320
Speaker 8: you accept American Express.

639
00:32:13,400 --> 00:32:15,440
Speaker 3: And not just well on the way to not just

640
00:32:15,520 --> 00:32:18,360
Speaker 3: in luxury places which often sometimes you think of a

641
00:32:18,440 --> 00:32:22,520
Speaker 3: more well lucrative, higher earner, higher spender using AMEX, but

642
00:32:22,800 --> 00:32:25,720
Speaker 3: you're going to discount stores, You're going to cobblers in

643
00:32:25,800 --> 00:32:28,520
Speaker 3: the UK key cutters to get them to accept Amex.

644
00:32:28,640 --> 00:32:31,480
Speaker 3: And to that en, how much has data been driving us?

645
00:32:31,480 --> 00:32:34,160
Speaker 3: How much has technology almost been the driver of where

646
00:32:34,200 --> 00:32:37,960
Speaker 3: you go, where you put your your resources to work well.

647
00:32:38,160 --> 00:32:41,200
Speaker 8: Data is one of the things that makes American Express unique.

648
00:32:41,640 --> 00:32:43,800
Speaker 8: We both issue the cards, many of the cards that

649
00:32:44,080 --> 00:32:46,760
Speaker 8: our card members carry, as well as we have direct

650
00:32:46,760 --> 00:32:51,120
Speaker 8: relationships with merchants, and that creates a tremendous amount of data.

651
00:32:51,800 --> 00:32:54,840
Speaker 8: And one of the universal truths that all businesses care

652
00:32:54,840 --> 00:32:57,560
Speaker 8: about is they want to find new car, new customers.

653
00:32:58,080 --> 00:33:00,960
Speaker 8: And we can use that information than the data that

654
00:33:01,040 --> 00:33:04,000
Speaker 8: we have to allow merchants to market into our premium,

655
00:33:04,080 --> 00:33:06,600
Speaker 8: high spending card members. And to your point, whether it's

656
00:33:06,680 --> 00:33:10,240
Speaker 8: Tescos or Timson's here in the UK or many smaller

657
00:33:10,320 --> 00:33:13,040
Speaker 8: merchants everyday spend categories. We want to make sure that

658
00:33:13,120 --> 00:33:15,920
Speaker 8: we have coverage everywhere where our card members want to spend.

659
00:33:16,400 --> 00:33:18,959
Speaker 8: But also we can help them grow by allowing us

660
00:33:19,040 --> 00:33:22,640
Speaker 8: to be a very very efficient marketing channel so that

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00:33:22,760 --> 00:33:25,520
Speaker 8: they can market into our premium card member base and

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00:33:25,760 --> 00:33:28,680
Speaker 8: find new customers. And it's something we call annex offers,

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00:33:28,920 --> 00:33:31,640
Speaker 8: and it's powered by the unique and rich data that

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00:33:31,760 --> 00:33:34,240
Speaker 8: we have by being both the issuer of the cards

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00:33:34,400 --> 00:33:36,479
Speaker 8: and having those direct relationships with merchants.

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00:33:36,920 --> 00:33:39,200
Speaker 3: Why do this now, Raymond, when we're thinking about an

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00:33:39,240 --> 00:33:41,720
Speaker 3: economy that's a little bit tougher, when we're thinking about

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00:33:42,000 --> 00:33:46,080
Speaker 3: people spending in a more and different manner, How why

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00:33:46,240 --> 00:33:46,920
Speaker 3: make this drive?

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00:33:46,960 --> 00:33:49,800
Speaker 4: Why make this commitment to be more overseas in your manner?

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00:33:50,800 --> 00:33:53,280
Speaker 8: Well, two things. First, in response to our card members,

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00:33:53,360 --> 00:33:55,320
Speaker 8: our card members wanted to be able to use their

673
00:33:55,360 --> 00:33:57,560
Speaker 8: card in far more places. So we started down this

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00:33:57,680 --> 00:33:59,880
Speaker 8: journey in the US, as you mentioned, to reach parity.

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00:34:00,480 --> 00:34:02,800
Speaker 8: That meant in the US ninety ninety percent of the

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00:34:02,840 --> 00:34:07,240
Speaker 8: merchants that accept credit cards now accept americanspress and internationally.

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00:34:07,320 --> 00:34:09,120
Speaker 8: We wanted to make sure we were in the places

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00:34:09,160 --> 00:34:12,160
Speaker 8: where our card members live, work and travel too, so

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00:34:12,280 --> 00:34:15,640
Speaker 8: we focus the teams on some very important international cities

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00:34:15,680 --> 00:34:18,200
Speaker 8: and we've made material progress. As I mentioned, we've more

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00:34:18,239 --> 00:34:20,760
Speaker 8: than tripled the number of locations that accept American Express

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00:34:21,120 --> 00:34:25,160
Speaker 8: since twenty eighteen, and we continue to have upside above that.

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00:34:25,440 --> 00:34:28,280
Speaker 8: And now's a great time to do it. And American

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00:34:28,320 --> 00:34:31,080
Speaker 8: Express has been around for one hundred and seventy three years.

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00:34:31,560 --> 00:34:35,560
Speaker 8: We've been through all types of cycles. We were operating

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00:34:35,600 --> 00:34:38,920
Speaker 8: in a cyclical environment and good economies of bad economies.

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00:34:38,920 --> 00:34:41,239
Speaker 8: We know we need more coverage and give our car

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00:34:41,320 --> 00:34:43,160
Speaker 8: members greater confidence to pull out their card at the

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00:34:43,160 --> 00:34:43,719
Speaker 8: point of sale.

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00:34:44,239 --> 00:34:46,640
Speaker 4: Raymond Jobell, great to have some time with you. Thank you.

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00:34:47,160 --> 00:34:48,160
Speaker 4: You get back to work in the UK.

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00:34:48,239 --> 00:34:51,120
Speaker 3: American Express Group, President of Global Merchant and Network Services.

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00:34:51,480 --> 00:34:52,520
Speaker 4: We appreciate the time