1 00:00:01,440 --> 00:00:05,120 Speaker 1: From Marhart where Innovation of Money and Power Collie in 2 00:00:05,240 --> 00:00:10,160 Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 3 00:00:10,160 --> 00:00:11,040 Speaker 1: and Ed loved. 4 00:00:10,880 --> 00:00:27,200 Speaker 2: Love live from New York and San Francisco. This is 5 00:00:27,240 --> 00:00:28,960 Speaker 2: Rumberg Technology coming up. 6 00:00:29,120 --> 00:00:32,320 Speaker 3: All eyes on Powell Markets on Edge and we watch 7 00:00:32,360 --> 00:00:33,760 Speaker 3: the tech sector ahead of the FED. 8 00:00:34,640 --> 00:00:37,880 Speaker 4: Plus Microsoft and black Rocket teaming up planning to launch 9 00:00:38,040 --> 00:00:41,160 Speaker 4: a thirty billion dollar AI investment fund. 10 00:00:41,040 --> 00:00:44,920 Speaker 3: And Google wins in court this time EU judges overturning 11 00:00:44,960 --> 00:00:48,320 Speaker 3: the company's one and a half billion euro antitrust Fine, 12 00:00:48,920 --> 00:00:52,199 Speaker 3: but first check in on these markets, I will Gail Doolittle. 13 00:00:52,760 --> 00:00:55,280 Speaker 5: Well, Caroline, we are just hours away from one of 14 00:00:55,280 --> 00:00:57,440 Speaker 5: the most anticipated FED decisions in years. 15 00:00:57,480 --> 00:00:58,360 Speaker 6: Because of course. 16 00:00:58,120 --> 00:01:00,640 Speaker 5: It's all but likely that they will and backed cut 17 00:01:00,680 --> 00:01:04,000 Speaker 5: at this next meeting for the first time in four years. 18 00:01:04,000 --> 00:01:06,080 Speaker 5: But the big question is we'll be twenty five basis 19 00:01:06,080 --> 00:01:09,120 Speaker 5: points or fifty basis points according to probability within the 20 00:01:09,120 --> 00:01:11,760 Speaker 5: Bloomberg terminal. Right now, we are looking at a fifty 21 00:01:11,800 --> 00:01:15,399 Speaker 5: seven percent chance of a fifty basis point cut. This 22 00:01:15,440 --> 00:01:17,480 Speaker 5: would be one of the first times this has happened 23 00:01:17,720 --> 00:01:21,400 Speaker 5: in a non emergency capacity, perhaps raising questions of what 24 00:01:21,440 --> 00:01:23,240 Speaker 5: are they seeing Why are they going to make such 25 00:01:23,280 --> 00:01:25,679 Speaker 5: a big cut if it happens. Not so long ago, 26 00:01:25,800 --> 00:01:29,160 Speaker 5: former Saint Louis FED president James Buller did tell CNBC 27 00:01:29,440 --> 00:01:32,839 Speaker 5: he thinks the chances of a fifty basis point cut 28 00:01:33,080 --> 00:01:36,000 Speaker 5: is actually overblown. So we have seen this probability coming 29 00:01:36,000 --> 00:01:38,240 Speaker 5: in about five percent since those comments at the highs 30 00:01:38,280 --> 00:01:41,080 Speaker 5: on Monday at seventy percent, but the main point is 31 00:01:41,240 --> 00:01:43,760 Speaker 5: more than fifty percent. What has this done for stocks? 32 00:01:43,800 --> 00:01:46,280 Speaker 5: Well over the last couple of months, since we have 33 00:01:46,440 --> 00:01:50,080 Speaker 5: seen some of the sectors, in particular technology peak, We 34 00:01:50,200 --> 00:01:53,080 Speaker 5: have that magnificent seven in the bottom panel of this 35 00:01:53,200 --> 00:01:56,600 Speaker 5: chart that we're looking at down about five percent, whereas 36 00:01:56,640 --> 00:01:59,960 Speaker 5: you have some of the rate sensitive sectors utilities, real estate, staples, healthcare, 37 00:02:00,320 --> 00:02:04,280 Speaker 5: defensive sectors doing better because their dividends will look less attractive. 38 00:02:04,320 --> 00:02:07,120 Speaker 5: That is not the case though, since the FED started hiking. 39 00:02:07,200 --> 00:02:09,720 Speaker 5: Let's take a look at technology since that time period. 40 00:02:09,760 --> 00:02:12,920 Speaker 5: It is clearly the top sector, up sixty percent. In fact, 41 00:02:12,960 --> 00:02:15,640 Speaker 5: all of the sectors a nice rally except for real estate. 42 00:02:15,720 --> 00:02:18,480 Speaker 5: Higher rates, of course lower the values on real estate. 43 00:02:18,560 --> 00:02:20,480 Speaker 5: So that is the one loan sector over the last 44 00:02:20,480 --> 00:02:23,880 Speaker 5: two years that has done poorly and then finally ed. 45 00:02:24,120 --> 00:02:27,799 Speaker 5: This is mind blowing in a way. In Vidia, over 46 00:02:27,880 --> 00:02:31,960 Speaker 5: the last two years since that FED hiking cycle had started, 47 00:02:32,440 --> 00:02:35,480 Speaker 5: up more than seven hundred and seventy percent. We have 48 00:02:35,600 --> 00:02:38,919 Speaker 5: the likes of Meta up nearly three hundred percent. Microsoft 49 00:02:39,000 --> 00:02:41,600 Speaker 5: and Apple not to be left out, both up about 50 00:02:41,639 --> 00:02:44,720 Speaker 5: fifty seventy five percent, big, big rally for tech, but 51 00:02:44,760 --> 00:02:47,399 Speaker 5: more recently, as we've had this rotation into other sectors, 52 00:02:47,919 --> 00:02:50,520 Speaker 5: tech cooling off. But you can see those investors over 53 00:02:50,560 --> 00:02:52,720 Speaker 5: the last couple of years doing quite well. 54 00:02:52,840 --> 00:02:56,120 Speaker 4: Bloomberg's Abigail Dolittle, thank you. Let's keep the discussion going 55 00:02:56,120 --> 00:02:59,600 Speaker 4: with Megan Horneman's CIO of the Dense Capital Advisors, and 56 00:02:59,639 --> 00:03:03,680 Speaker 4: we start by asking how significant is today's FED decision 57 00:03:04,000 --> 00:03:05,280 Speaker 4: for the technology sector. 58 00:03:07,080 --> 00:03:10,280 Speaker 7: I think it's definitely very important for the tech sector 59 00:03:10,320 --> 00:03:12,840 Speaker 7: as well as the entire market. I think that if 60 00:03:13,120 --> 00:03:15,720 Speaker 7: the yields keep moving higher as we've seen here as 61 00:03:15,800 --> 00:03:19,560 Speaker 7: of late, then that's negative for technology, and technology is 62 00:03:19,639 --> 00:03:21,880 Speaker 7: rallying on the anticipation that we're going to get fifty 63 00:03:21,880 --> 00:03:24,480 Speaker 7: basis points from the FED today. If that doesn't occur, 64 00:03:24,560 --> 00:03:26,480 Speaker 7: I think that that's going to put at this rally 65 00:03:26,480 --> 00:03:27,560 Speaker 7: and technology at risk. 66 00:03:28,400 --> 00:03:31,160 Speaker 4: There's a part of the mag seven story, Megan, where 67 00:03:31,600 --> 00:03:34,800 Speaker 4: those names are performing in isolation of everything else that's 68 00:03:34,840 --> 00:03:37,920 Speaker 4: happening in our world because of the commitment to invest 69 00:03:38,320 --> 00:03:42,400 Speaker 4: in the infrastructure supporting AI. How closely tied are the 70 00:03:42,440 --> 00:03:46,440 Speaker 4: two stories that and central bank policy? 71 00:03:47,120 --> 00:03:50,720 Speaker 7: Well, I think central bank policy and then the story 72 00:03:50,720 --> 00:03:55,040 Speaker 7: around technology. They're separate things. The infrastructure with technology the 73 00:03:55,080 --> 00:03:57,360 Speaker 7: advancements that we're going to see. This is going to 74 00:03:57,400 --> 00:04:00,640 Speaker 7: evolve over time, but the valuations that you're seeing on 75 00:04:00,760 --> 00:04:03,280 Speaker 7: these stocks is linked to interest rate policy and as 76 00:04:03,280 --> 00:04:05,880 Speaker 7: well as yields. If this interest rate policy does not 77 00:04:05,960 --> 00:04:10,000 Speaker 7: deliver with what we're in, with what these heightened valuations 78 00:04:10,000 --> 00:04:13,360 Speaker 7: are anticipating, then you're going to see some valuation correction 79 00:04:13,440 --> 00:04:14,080 Speaker 7: in these names. 80 00:04:14,880 --> 00:04:17,640 Speaker 3: Is that limited to the big caps or more broadly 81 00:04:17,680 --> 00:04:20,200 Speaker 3: across technology in and of itself, Megan. 82 00:04:20,920 --> 00:04:24,120 Speaker 7: I think it's broadly across technology and any even some 83 00:04:24,160 --> 00:04:26,919 Speaker 7: of the communications services, any of these growth type of 84 00:04:27,000 --> 00:04:30,479 Speaker 7: names that you've seen with these very high valuations. These 85 00:04:30,520 --> 00:04:33,760 Speaker 7: high valuations are pricing in perfection. They're pricing in that 86 00:04:33,880 --> 00:04:37,560 Speaker 7: the FED will come in deliver with these interstrate cuts. 87 00:04:37,720 --> 00:04:39,360 Speaker 7: They'll come in and save the day like we've been 88 00:04:39,440 --> 00:04:41,920 Speaker 7: used to over the past couple decades. And they're also 89 00:04:41,960 --> 00:04:45,240 Speaker 7: pricing in perfection for the economy these things. None of 90 00:04:45,240 --> 00:04:47,120 Speaker 7: this is set in stone right now, so I think 91 00:04:47,120 --> 00:04:48,920 Speaker 7: that there is still there's a big risk here for 92 00:04:49,000 --> 00:04:52,640 Speaker 7: some of these growth and high pe level sectors. 93 00:04:53,080 --> 00:04:55,360 Speaker 3: Is that just in the US or do we see 94 00:04:55,440 --> 00:04:58,760 Speaker 3: the wind taken out of the sales of European tactoo. 95 00:04:58,440 --> 00:05:02,240 Speaker 7: Megan, Well, well, we don't have as much technology in 96 00:05:02,279 --> 00:05:05,679 Speaker 7: some of the European indices. They're not as tech heavy 97 00:05:05,760 --> 00:05:08,240 Speaker 7: as the US is. But we have seen the correlation here. 98 00:05:08,279 --> 00:05:10,440 Speaker 7: When we have the sell off in the growth or 99 00:05:10,440 --> 00:05:13,599 Speaker 7: technology here in the US, it does tend to filter 100 00:05:13,680 --> 00:05:16,480 Speaker 7: into overseas as well. 101 00:05:16,520 --> 00:05:20,840 Speaker 4: Megan, How important to you and the technology investor around 102 00:05:20,880 --> 00:05:24,159 Speaker 4: the world is the path forward thereafter? We can't help ourselves, right, 103 00:05:24,200 --> 00:05:27,200 Speaker 4: We've been waiting for September eighteen and we already ask 104 00:05:27,760 --> 00:05:30,160 Speaker 4: then what increments do we have further rate cuts in 105 00:05:30,200 --> 00:05:30,920 Speaker 4: the path from there? 106 00:05:32,040 --> 00:05:32,160 Speaker 8: Right? 107 00:05:32,720 --> 00:05:35,080 Speaker 7: That's a great question because they can do several things 108 00:05:35,120 --> 00:05:37,680 Speaker 7: today at this meeting. They can deliver with twenty five 109 00:05:37,720 --> 00:05:39,680 Speaker 7: basis points, which is why I think that they should 110 00:05:39,680 --> 00:05:42,440 Speaker 7: do They should reiterate that they're can going to continue 111 00:05:42,440 --> 00:05:46,400 Speaker 7: to monitor data, they'll act accordingly. It's meeting by meeting, 112 00:05:47,000 --> 00:05:49,560 Speaker 7: and then if they could go with fifty basis points, 113 00:05:49,640 --> 00:05:52,279 Speaker 7: they could come in and say this is a fine tuning. 114 00:05:52,279 --> 00:05:53,880 Speaker 7: We're going to be on hold now, and then you're 115 00:05:53,920 --> 00:05:55,760 Speaker 7: going to get the cuts that are priced into the 116 00:05:55,800 --> 00:05:58,159 Speaker 7: market for the rest this year move out. The most 117 00:05:58,160 --> 00:06:01,560 Speaker 7: important thing today, whether it's technology or the rest of 118 00:06:01,600 --> 00:06:04,279 Speaker 7: the stock market is what are they going to say 119 00:06:04,279 --> 00:06:06,960 Speaker 7: from the dot plots going forward? What are they saying 120 00:06:07,040 --> 00:06:09,680 Speaker 7: for the unemployment, their estimates that they're going to have 121 00:06:09,720 --> 00:06:12,760 Speaker 7: to put out, What are they saying as far as inflation, 122 00:06:13,120 --> 00:06:17,159 Speaker 7: because let's keep in mind inflation has come down significantly, 123 00:06:17,440 --> 00:06:20,120 Speaker 7: but it's still in certain areas is very sticky. So 124 00:06:20,560 --> 00:06:23,960 Speaker 7: their press conference and the projections that they put out 125 00:06:24,000 --> 00:06:27,599 Speaker 7: after the meeting, they're more important, obviously in fact, to 126 00:06:27,720 --> 00:06:30,600 Speaker 7: us than whether it's twenty five or fifty basis points. 127 00:06:30,640 --> 00:06:34,359 Speaker 3: Today, Megan, there's whole other parts of the capital structure 128 00:06:34,360 --> 00:06:37,200 Speaker 3: you can earn within technology. What does this mean for 129 00:06:37,600 --> 00:06:40,560 Speaker 3: the debt corporate debt of Apple of some of the 130 00:06:40,640 --> 00:06:42,680 Speaker 3: names that have just so much cash on the balance sheet, 131 00:06:42,720 --> 00:06:45,200 Speaker 3: as well. Do bond markets feel the pressure in the 132 00:06:45,200 --> 00:06:48,520 Speaker 3: same way that the equity side will. 133 00:06:48,760 --> 00:06:51,640 Speaker 7: I think bond marites do, they will feel the same way. 134 00:06:51,680 --> 00:06:53,800 Speaker 7: I mean, let's be honest that the yields have come 135 00:06:53,880 --> 00:06:55,840 Speaker 7: down quite a bit. They're backing up a little bit now, 136 00:06:55,839 --> 00:06:58,520 Speaker 7: but yields have come down substantially. And then when you 137 00:06:58,560 --> 00:07:01,680 Speaker 7: look at the longer term over the over yields and 138 00:07:01,800 --> 00:07:04,520 Speaker 7: whether you're looking at long term debt, there's just this 139 00:07:04,640 --> 00:07:07,320 Speaker 7: focus on treasury. There's a main there's a major issue 140 00:07:07,360 --> 00:07:09,800 Speaker 7: from the treasury side of things, that is the deficit, 141 00:07:09,880 --> 00:07:12,880 Speaker 7: and there's not been anything to address that. And I 142 00:07:12,920 --> 00:07:15,920 Speaker 7: don't see even with an election coming up, that there's 143 00:07:15,960 --> 00:07:18,800 Speaker 7: anything that's going to change that. The amount of issuance 144 00:07:18,840 --> 00:07:21,200 Speaker 7: on that long end of the curve. So anybody who's 145 00:07:21,200 --> 00:07:24,280 Speaker 7: focusing on debt or has is debt heavy, and I've 146 00:07:24,280 --> 00:07:27,320 Speaker 7: realized that technology sector is not as debt heavy as 147 00:07:27,320 --> 00:07:30,120 Speaker 7: other sectors going to have an impact on these long 148 00:07:30,200 --> 00:07:31,640 Speaker 7: ends of the of the yeal curve. 149 00:07:32,600 --> 00:07:35,360 Speaker 4: Megan, I'd like to end the conversation by trying to 150 00:07:35,440 --> 00:07:38,040 Speaker 4: learn from the year that's gone about what might happen 151 00:07:38,080 --> 00:07:40,080 Speaker 4: in the year ahead. And I use in Nvidia as 152 00:07:40,120 --> 00:07:44,360 Speaker 4: the case study capital expenditures an investment. But the other 153 00:07:44,440 --> 00:07:48,680 Speaker 4: phenomenon that's happened is retail investors have pied piled into 154 00:07:48,720 --> 00:07:51,679 Speaker 4: in video as well. How does a change an interest 155 00:07:51,760 --> 00:07:54,600 Speaker 4: rate environment just kind of change the fanfare of the 156 00:07:54,640 --> 00:07:57,640 Speaker 4: market and the psychology of the market over the next 157 00:07:57,680 --> 00:07:58,400 Speaker 4: twelve months. 158 00:08:00,280 --> 00:08:03,000 Speaker 7: Well, it all comes down what is the price of 159 00:08:03,000 --> 00:08:03,640 Speaker 7: those stocks. 160 00:08:03,680 --> 00:08:04,680 Speaker 6: And when you look. 161 00:08:04,520 --> 00:08:07,960 Speaker 7: At stocks that have very high elevated price to earnings multiples, 162 00:08:07,960 --> 00:08:10,800 Speaker 7: we saw what happened in twenty twenty two. If interest 163 00:08:10,880 --> 00:08:14,880 Speaker 7: rates rise across the board and you see those high 164 00:08:14,880 --> 00:08:19,200 Speaker 7: pe level stocks and that's technology specifically, they end up 165 00:08:19,200 --> 00:08:21,760 Speaker 7: getting hurt by this. So going into next year, I 166 00:08:21,840 --> 00:08:24,400 Speaker 7: still think the Fed has the flexibility to continue to 167 00:08:24,440 --> 00:08:26,440 Speaker 7: cut rates. I just don't think that they're going to 168 00:08:26,520 --> 00:08:29,040 Speaker 7: deliver the way that the market is pricing this in 169 00:08:29,120 --> 00:08:29,600 Speaker 7: right now. 170 00:08:30,040 --> 00:08:32,680 Speaker 3: Burn and c IO, Megan Hornemann, it's great to have 171 00:08:32,760 --> 00:08:36,280 Speaker 3: you today with thank you. Look what's interesting about these 172 00:08:36,320 --> 00:08:38,800 Speaker 3: markets is perhaps you wish you had the investment vice 173 00:08:38,920 --> 00:08:43,240 Speaker 3: or decision making prowess of well the investing elite ed 174 00:08:43,440 --> 00:08:46,400 Speaker 3: think Warren Buffett, think Stanley droc and Miller think David 175 00:08:46,440 --> 00:08:50,120 Speaker 3: Tepper and so many more. Today we understand and ETF 176 00:08:50,200 --> 00:08:52,280 Speaker 3: is trying to promise just that sort of power of 177 00:08:52,360 --> 00:08:56,959 Speaker 3: AI fintech startup Internigion Alpha. They're launching a chat pot 178 00:08:57,160 --> 00:09:03,559 Speaker 3: powered by chat Gemini Claude. They call them the Investment Committee. 179 00:09:03,600 --> 00:09:07,720 Speaker 3: They're going to act like these hedge fund officionados to 180 00:09:07,760 --> 00:09:08,439 Speaker 3: make decisions. 181 00:09:08,559 --> 00:09:09,080 Speaker 8: What do you think? 182 00:09:09,400 --> 00:09:12,840 Speaker 4: We know the obsession of the market of those names. 183 00:09:12,880 --> 00:09:15,040 Speaker 4: But what I find astonished about the story is the 184 00:09:15,080 --> 00:09:19,839 Speaker 4: simplicity of it that basically it's a strategy generated through 185 00:09:19,880 --> 00:09:21,960 Speaker 4: a generative AI tool. You listed them, but you just 186 00:09:22,040 --> 00:09:25,040 Speaker 4: go into it and ask what's the strategy here? What 187 00:09:25,080 --> 00:09:29,800 Speaker 4: would Warren Buffett do? And you get a response and then. 188 00:09:29,760 --> 00:09:31,480 Speaker 8: The ETF trades off it. 189 00:09:31,760 --> 00:09:34,120 Speaker 3: I don't know, We'll see how this one plays out, 190 00:09:34,120 --> 00:09:35,320 Speaker 3: but it's an interesting launch today. 191 00:09:35,400 --> 00:09:36,480 Speaker 8: Meanwhile, coming up, we've got so. 192 00:09:36,480 --> 00:09:38,800 Speaker 3: Much more to talk about, and of course there's a 193 00:09:38,840 --> 00:09:41,040 Speaker 3: serious side to what's happening in terms of geopolitics, and 194 00:09:41,080 --> 00:09:44,440 Speaker 3: it affects technology because pages and telecom devices are exploding 195 00:09:44,480 --> 00:09:46,679 Speaker 3: in Lebanon more in the developing situation. 196 00:09:46,840 --> 00:10:12,280 Speaker 9: Next this is Blue Meg Technology. 197 00:10:03,679 --> 00:10:08,079 Speaker 4: An update from Lebanon More Pages and other telecommunication devices 198 00:10:08,120 --> 00:10:11,760 Speaker 4: exploding in Lebanon, just one day after a series of 199 00:10:11,800 --> 00:10:15,360 Speaker 4: similar deadly blasts. That's according to reporting by the state 200 00:10:15,440 --> 00:10:19,760 Speaker 4: run national news agency. Bloomberg Television's Jamana Bassecci joins us 201 00:10:20,000 --> 00:10:22,880 Speaker 4: with the latest. What do we know about the events 202 00:10:22,920 --> 00:10:25,920 Speaker 4: of the last hour and what's happening in Lebanon. 203 00:10:25,960 --> 00:10:30,080 Speaker 10: Jamana, that's right, So it appears that another attack on 204 00:10:30,160 --> 00:10:33,600 Speaker 10: Hesbala's telecommunication devices has occurred. Just in the last hour. 205 00:10:34,240 --> 00:10:38,480 Speaker 10: We are hearing of handheld radio's walkie talkie devices against 206 00:10:38,800 --> 00:10:43,520 Speaker 10: also exploding in people's hands, cars and across at homes. 207 00:10:43,600 --> 00:10:46,520 Speaker 10: Even and this of course comes after yesterday the attack 208 00:10:46,679 --> 00:10:51,800 Speaker 10: where more than two thousand pagers when off, simultaneously exploding 209 00:10:51,880 --> 00:10:56,440 Speaker 10: into the pagers that these Himbala operatives have been using. Now, 210 00:10:56,559 --> 00:11:01,000 Speaker 10: it is important to note here that Israel has declined 211 00:11:01,040 --> 00:11:03,880 Speaker 10: to take or has not commented on any of the 212 00:11:03,920 --> 00:11:07,120 Speaker 10: attacks that have taken place or the incidents. But both 213 00:11:07,240 --> 00:11:10,000 Speaker 10: Hezballah and the Lebanese governments were quick to point the 214 00:11:10,040 --> 00:11:13,320 Speaker 10: finger at Israel, saying that Israeli intelligence would have been 215 00:11:13,400 --> 00:11:16,480 Speaker 10: behind this very elaborate operation. But what is clear here 216 00:11:17,040 --> 00:11:19,760 Speaker 10: is that this war that has been going on a 217 00:11:19,880 --> 00:11:22,720 Speaker 10: hot war, so to speak. Ever since October seventh on 218 00:11:22,800 --> 00:11:26,400 Speaker 10: Israel's northern border has developed and transformed into a new 219 00:11:26,440 --> 00:11:29,920 Speaker 10: type of warfare as cyber warfare, and lots of questions 220 00:11:29,920 --> 00:11:33,439 Speaker 10: are being asked about how these specific devices have been compromised. 221 00:11:34,240 --> 00:11:36,440 Speaker 3: Can you tell us a little bit about the supply 222 00:11:36,559 --> 00:11:38,679 Speaker 3: chain ultimately here, Jeman Or of what you say is 223 00:11:38,720 --> 00:11:42,920 Speaker 3: an elaborate attack, the Taiwanese company gold Apollo has spoken. 224 00:11:42,600 --> 00:11:47,439 Speaker 11: Out yes, So the branding on the pages that were 225 00:11:47,440 --> 00:11:51,200 Speaker 11: detonated yesterday can be pointed back to a very not 226 00:11:51,320 --> 00:11:57,920 Speaker 11: well known Taiwanese manufacturer called gold Apollo, and they actually 227 00:11:57,960 --> 00:12:01,160 Speaker 11: issued a statement saying that those sicular models that you 228 00:12:01,280 --> 00:12:04,240 Speaker 11: were used for detonations yesterday were not ones that they 229 00:12:04,240 --> 00:12:05,520 Speaker 11: manufactured themselves. 230 00:12:05,559 --> 00:12:07,119 Speaker 1: Instead, it was actually. 231 00:12:06,880 --> 00:12:10,640 Speaker 10: A company called BAC that were based in Hungary that 232 00:12:10,720 --> 00:12:13,760 Speaker 10: had obtained the licensing to use the branding on devices 233 00:12:13,760 --> 00:12:16,600 Speaker 10: that they manufactured. Now, Bloomberg did try to reach out 234 00:12:16,600 --> 00:12:19,080 Speaker 10: to BAC for comments, We have not heard back from them. 235 00:12:19,400 --> 00:12:22,400 Speaker 10: But again, all of this is part and parcel of 236 00:12:22,440 --> 00:12:24,480 Speaker 10: a very elaborate plan, and it seems to be the 237 00:12:24,520 --> 00:12:27,040 Speaker 10: case that it's not just the pages that were compromised, 238 00:12:27,240 --> 00:12:31,960 Speaker 10: but other telecommunication devices that Hezbollah militants have been using, 239 00:12:32,520 --> 00:12:35,560 Speaker 10: and experts in the field say that the way this 240 00:12:35,640 --> 00:12:39,520 Speaker 10: could have been done is by whoever tampered with the 241 00:12:39,559 --> 00:12:43,760 Speaker 10: devices putting in small quantities of explosive device. They ten 242 00:12:44,440 --> 00:12:48,400 Speaker 10: explosive material ten to twenty grounds that would get triggered 243 00:12:48,720 --> 00:12:51,320 Speaker 10: on a signal that would come through so that they 244 00:12:51,320 --> 00:12:54,600 Speaker 10: would all explode simultaneously. The country is on high alert 245 00:12:54,720 --> 00:12:58,560 Speaker 10: because this is the second such intelligence breach in two days. 246 00:13:00,000 --> 00:13:03,200 Speaker 4: Several parties involved and we're awaiting responses from others who 247 00:13:03,400 --> 00:13:08,160 Speaker 4: understanding is that Lebanon and Hezbullah, which is a group 248 00:13:08,240 --> 00:13:11,600 Speaker 4: the United States announces as a terrorist group, have accused 249 00:13:11,800 --> 00:13:15,720 Speaker 4: Israel of being behind the attack. We haven't heard from Israel. 250 00:13:16,559 --> 00:13:18,760 Speaker 4: What else do we know about the political situation? 251 00:13:18,840 --> 00:13:23,679 Speaker 10: Yamana, Yes, well, again it is fast moving and as 252 00:13:23,720 --> 00:13:27,800 Speaker 10: I was just highlighting, within Lebanon, now there's major concern 253 00:13:27,880 --> 00:13:31,560 Speaker 10: that we're moving to a new type of warfare and 254 00:13:31,640 --> 00:13:34,959 Speaker 10: that in the past the war had been conducted solely 255 00:13:35,000 --> 00:13:36,840 Speaker 10: on the southern part of the country in borders. But 256 00:13:36,880 --> 00:13:40,280 Speaker 10: now what's happening is there's been a complete intelligence breach. 257 00:13:40,320 --> 00:13:44,079 Speaker 10: People are very concerned about what this means for telecommunications 258 00:13:44,080 --> 00:13:47,880 Speaker 10: within the country and the potential for further action or 259 00:13:47,880 --> 00:13:50,520 Speaker 10: further operations coming out of Israel. The background to this, 260 00:13:50,600 --> 00:13:54,960 Speaker 10: of course, since yesterday the Israeli Prime Minister Benjamin Attaannapolos 261 00:13:54,960 --> 00:13:58,080 Speaker 10: said that there is another new war objective now, and 262 00:13:58,120 --> 00:14:01,240 Speaker 10: that is to return security to the northern border of Israel, 263 00:14:01,320 --> 00:14:04,120 Speaker 10: so that citizens within the country can return back. They 264 00:14:04,120 --> 00:14:07,280 Speaker 10: had been evacuated and had been forced to move dis 265 00:14:07,320 --> 00:14:10,520 Speaker 10: plate ever since October seven, and so there is a 266 00:14:10,600 --> 00:14:13,480 Speaker 10: focus from Israel and from the Israeli government to do 267 00:14:13,559 --> 00:14:17,120 Speaker 10: something about the situation on that border. The concern of 268 00:14:17,160 --> 00:14:20,160 Speaker 10: ours is that in the absence of the diplomatic solution, 269 00:14:20,520 --> 00:14:23,680 Speaker 10: we may be looking at something like a full scale invasion. 270 00:14:24,760 --> 00:14:28,000 Speaker 3: Risk of a serious, dramatic escalation is what the United 271 00:14:28,080 --> 00:14:31,600 Speaker 3: Nations is currently saying. Jamana Bassecci, thank you so much 272 00:14:31,960 --> 00:14:42,000 Speaker 3: for coming to us from Middle East. It is time 273 00:14:42,120 --> 00:14:45,720 Speaker 3: for today's AI in action. Well bringing in Catherine Costareva. 274 00:14:45,920 --> 00:14:48,400 Speaker 3: She is the CEO of Creatio. It's a no code 275 00:14:48,400 --> 00:14:52,440 Speaker 3: platform enabling that the automation of workflows and CRN thanks 276 00:14:52,440 --> 00:14:55,240 Speaker 3: to the power of artificial intelligence. Just announced two hundred 277 00:14:55,240 --> 00:14:57,200 Speaker 3: million dollars in new funding over the summer. You've got 278 00:14:57,240 --> 00:15:00,120 Speaker 3: a one point two billion dollar valuation. The value of 279 00:15:00,120 --> 00:15:04,880 Speaker 3: what you provide is well, less engineers and code is needed. 280 00:15:05,040 --> 00:15:08,160 Speaker 3: I can build my own application using just creatia. 281 00:15:09,320 --> 00:15:11,480 Speaker 1: So true, And first of all, thank you very much 282 00:15:11,520 --> 00:15:14,040 Speaker 1: for having me. I'm excited to be here today with you. 283 00:15:14,640 --> 00:15:17,640 Speaker 1: And you know what, when we founded the company ten 284 00:15:17,720 --> 00:15:21,320 Speaker 1: years ago, the biggest value we brought to our clients 285 00:15:21,480 --> 00:15:24,800 Speaker 1: was time to value the ability to build your applications, 286 00:15:24,840 --> 00:15:28,560 Speaker 1: not being a professional software developer. And right now we're 287 00:15:28,600 --> 00:15:31,960 Speaker 1: doing that with the help of AI, and that's definitely 288 00:15:32,000 --> 00:15:32,840 Speaker 1: the future. 289 00:15:34,480 --> 00:15:35,680 Speaker 6: In the world of technology. 290 00:15:36,000 --> 00:15:39,400 Speaker 4: I think we so ask ourselves about disruption versus what 291 00:15:39,440 --> 00:15:42,000 Speaker 4: the incumbents are doing. And I've spent a lot of 292 00:15:42,000 --> 00:15:45,560 Speaker 4: time with Salesforce and speaking to Salesforce executives and they 293 00:15:45,560 --> 00:15:49,000 Speaker 4: would tell you, Catherine, they're doing exactly the same thing. 294 00:15:49,360 --> 00:15:50,280 Speaker 6: How do you respond to that? 295 00:15:50,960 --> 00:15:51,200 Speaker 12: Oh? 296 00:15:52,000 --> 00:15:57,520 Speaker 1: Love the question. So let's start with the evolution of coding. Right, 297 00:15:57,920 --> 00:16:00,680 Speaker 1: if we go back into eighties, it was high coding. 298 00:16:00,880 --> 00:16:03,480 Speaker 1: You basically couldn't build the application, not being a professional 299 00:16:03,520 --> 00:16:06,800 Speaker 1: software developer, and then low code came. It's like rapid 300 00:16:06,800 --> 00:16:11,120 Speaker 1: application development industry and then no code emerged. So what 301 00:16:11,280 --> 00:16:15,160 Speaker 1: Creation is doing different from our competitors is actually giving 302 00:16:15,200 --> 00:16:18,040 Speaker 1: the ability to design your applications not being a professional 303 00:16:18,080 --> 00:16:22,360 Speaker 1: software developer, which and not being in tech industry at all, 304 00:16:22,560 --> 00:16:26,280 Speaker 1: which actually allows time to value, time to market to 305 00:16:26,320 --> 00:16:30,280 Speaker 1: be significantly faster. With the help of AI, you not 306 00:16:30,360 --> 00:16:34,440 Speaker 1: only develop your own apps and automate multiple use cases, 307 00:16:34,720 --> 00:16:40,560 Speaker 1: you actually replace people in multiple different rules like case resolutions, 308 00:16:40,640 --> 00:16:45,680 Speaker 1: like sales management, like campaign management, and in comparison to Salesforce, 309 00:16:45,720 --> 00:16:49,360 Speaker 1: the biggest difference at Creation is that you build those intents, 310 00:16:49,440 --> 00:16:54,000 Speaker 1: you build those use cases, not being a technical person, 311 00:16:54,120 --> 00:16:57,760 Speaker 1: so you define the use cases where AI is helping 312 00:16:57,760 --> 00:17:03,320 Speaker 1: you to automate tasks without being a professional developer. On 313 00:17:03,360 --> 00:17:05,200 Speaker 1: the creation of platform, you. 314 00:17:05,200 --> 00:17:06,560 Speaker 8: Said replace people. 315 00:17:07,160 --> 00:17:10,439 Speaker 3: For many that is the key worry around artificial intelligence. 316 00:17:10,560 --> 00:17:13,280 Speaker 3: Most people try to say they'll be augmented. Have you 317 00:17:13,359 --> 00:17:15,040 Speaker 3: known that your clients replaced people? 318 00:17:16,880 --> 00:17:17,560 Speaker 10: I love. 319 00:17:19,080 --> 00:17:23,800 Speaker 1: Looking at it through augmentation, right, we actually empower our 320 00:17:24,080 --> 00:17:26,679 Speaker 1: end users to do their job better. 321 00:17:26,800 --> 00:17:30,080 Speaker 8: But you said replace people. So have people been replaced 322 00:17:30,080 --> 00:17:30,679 Speaker 8: at your clients? 323 00:17:30,680 --> 00:17:33,320 Speaker 1: Do you think partially yes? Like if we talk about 324 00:17:33,359 --> 00:17:37,159 Speaker 1: call center like people are doing more intelligent work, so 325 00:17:37,560 --> 00:17:41,080 Speaker 1: replaced in a very good way because basically AI is 326 00:17:41,520 --> 00:17:45,720 Speaker 1: taken over routine tasks while more intelligent work is being 327 00:17:45,760 --> 00:17:48,400 Speaker 1: done by people like let me give you an example 328 00:17:48,480 --> 00:17:51,920 Speaker 1: with building workflows, building your own applications with the help 329 00:17:51,920 --> 00:17:55,280 Speaker 1: of AI. AI does this work for you while you 330 00:17:55,520 --> 00:17:59,920 Speaker 1: do more intelligent work, which is integration of workflow apply 331 00:18:00,080 --> 00:18:04,520 Speaker 1: keations into the ecosystem of your organization. So it does 332 00:18:04,560 --> 00:18:10,040 Speaker 1: require more skills, which is a benefit for workers because 333 00:18:10,119 --> 00:18:13,880 Speaker 1: they can grow in their professional skills. 334 00:18:14,680 --> 00:18:17,560 Speaker 3: We want to thank you for bringing the pros, the 335 00:18:17,600 --> 00:18:20,320 Speaker 3: cons and indeed what you're building the creatio and your valuation. 336 00:18:20,400 --> 00:18:22,560 Speaker 8: CEO Kevin Custareva, thank you very much. 337 00:18:22,560 --> 00:18:26,080 Speaker 3: Indeed, now shifting to another part of AI, Blackrock and Microsoft, 338 00:18:26,240 --> 00:18:28,680 Speaker 3: they're teaming up on one of the largest efforts to 339 00:18:28,800 --> 00:18:32,960 Speaker 3: date to bankroll the buildout of data warehouses and energy 340 00:18:32,960 --> 00:18:37,920 Speaker 3: infrastructure behind the boom in artificial intelligence. This of course 341 00:18:37,960 --> 00:18:42,680 Speaker 3: being a normous undertaking from an infrastructure perspective, and we 342 00:18:42,760 --> 00:18:45,159 Speaker 3: want to be digging into some of the intricacies around 343 00:18:45,200 --> 00:18:48,119 Speaker 3: this particular deal that has been struck between an enormous 344 00:18:48,200 --> 00:18:53,320 Speaker 3: asset manager and indeed Larry Fink was posting on various 345 00:18:53,320 --> 00:18:58,439 Speaker 3: platforms yesterday ed about how much they are seeing this 346 00:18:58,560 --> 00:19:01,760 Speaker 3: whole seismic shift and the need for artificial intelligence, the 347 00:19:01,800 --> 00:19:03,119 Speaker 3: shares scale of money needed. 348 00:19:03,119 --> 00:19:05,640 Speaker 8: But actually he seemed to think it was relatively easy to. 349 00:19:05,600 --> 00:19:09,359 Speaker 3: Come by, Lin Dahn and pleased to say, joins us more, Lynn, 350 00:19:09,880 --> 00:19:13,040 Speaker 3: this is a massive amount of money and expertise coming 351 00:19:13,080 --> 00:19:13,880 Speaker 3: from in video too. 352 00:19:14,400 --> 00:19:17,320 Speaker 13: It is, and thank you for having me. It sounds massive, 353 00:19:17,440 --> 00:19:20,879 Speaker 13: doesn't it. Thirty billion dollars sounds massive, But it's just 354 00:19:20,960 --> 00:19:23,640 Speaker 13: the tip of the iceberg. I mean, remember that even 355 00:19:23,720 --> 00:19:27,680 Speaker 13: before this thirty billion dollar fund was announced, Microsoft had 356 00:19:27,720 --> 00:19:31,800 Speaker 13: already had already signed a multi billion dollar contract with 357 00:19:31,920 --> 00:19:35,879 Speaker 13: Brookfield just to build some renewable energy plants that would 358 00:19:35,920 --> 00:19:39,239 Speaker 13: in turn supply the electricity for data centers that are 359 00:19:39,280 --> 00:19:43,320 Speaker 13: necessary for AI. And before this announcement, we had this 360 00:19:43,400 --> 00:19:46,879 Speaker 13: scoop on how Sam Altman, the head of OpenAI, was 361 00:19:46,960 --> 00:19:51,000 Speaker 13: working on his own plan for AI infrastructure and pushing 362 00:19:51,000 --> 00:19:53,000 Speaker 13: for it here in the US. That would have also 363 00:19:53,119 --> 00:19:56,720 Speaker 13: cost tens of billions of dollars. So we are in 364 00:19:56,760 --> 00:20:00,800 Speaker 13: the end talking about hundreds of billions of dollars of 365 00:20:00,960 --> 00:20:04,679 Speaker 13: AI infrastructure necessary to keep the boom happening, and this 366 00:20:04,880 --> 00:20:07,800 Speaker 13: is just the latest announcement exactly. 367 00:20:07,840 --> 00:20:09,880 Speaker 4: So when I read this story by Boomberg Center, Rush 368 00:20:09,920 --> 00:20:12,439 Speaker 4: and Dina Bass, it's all the same names really that 369 00:20:12,440 --> 00:20:15,000 Speaker 4: we've been talking about. What's different a little bit about 370 00:20:15,000 --> 00:20:18,200 Speaker 4: the black Rock and Microsoft initiatively seems to be there 371 00:20:18,320 --> 00:20:22,160 Speaker 4: is a more micro focus on energy, but also deploying 372 00:20:22,200 --> 00:20:24,240 Speaker 4: capital outside of the US as well. 373 00:20:25,040 --> 00:20:28,200 Speaker 13: That's right, and that is actually something that has been 374 00:20:28,240 --> 00:20:31,560 Speaker 13: a big part of Sam Altman's push too, has been 375 00:20:31,600 --> 00:20:35,520 Speaker 13: going out there abroad trying to attract foreign sources of 376 00:20:35,640 --> 00:20:39,400 Speaker 13: money to fuel this AI boom. It was very interesting 377 00:20:39,480 --> 00:20:43,040 Speaker 13: to see the Abu Dhabi Fund invested in this. But also, 378 00:20:43,160 --> 00:20:45,879 Speaker 13: as you said, the energy part of it is the 379 00:20:45,960 --> 00:20:49,760 Speaker 13: critical part. And when our very own Bradstone interviewed Sam 380 00:20:49,800 --> 00:20:54,320 Speaker 13: Altman at Davos a year ago, he said something very similar. 381 00:20:54,359 --> 00:20:57,720 Speaker 13: He said, I don't think that the world has yet 382 00:20:57,840 --> 00:21:01,320 Speaker 13: realized how big of an increase we are talking about 383 00:21:01,359 --> 00:21:02,720 Speaker 13: in energy demands. 384 00:21:02,359 --> 00:21:03,480 Speaker 8: Because of the AI boom. 385 00:21:03,840 --> 00:21:07,960 Speaker 13: By our estimates at Bloomberg Intelligence, we're talking about possibly 386 00:21:08,080 --> 00:21:11,760 Speaker 13: ten times more energy being put toward AI data centers 387 00:21:11,840 --> 00:21:15,600 Speaker 13: by twenty thirty than today's levels. So for sure, the 388 00:21:15,640 --> 00:21:18,280 Speaker 13: focus needs to be on the energy aspect of the equation. 389 00:21:19,240 --> 00:21:22,199 Speaker 3: Just briefly, we know that people were the administration at 390 00:21:22,200 --> 00:21:24,760 Speaker 3: the White House last week talking about aim structure. 391 00:21:24,840 --> 00:21:27,800 Speaker 8: Is this the fruits of those labor That's right? 392 00:21:27,960 --> 00:21:30,520 Speaker 13: And I mean, I don't know if this fund is 393 00:21:30,560 --> 00:21:33,840 Speaker 13: the fruits of those labors, but for sure, what came 394 00:21:33,920 --> 00:21:37,160 Speaker 13: out of those conversations, as far as we know from sources, 395 00:21:37,920 --> 00:21:41,280 Speaker 13: was an agreement for a task force that would look 396 00:21:41,280 --> 00:21:44,800 Speaker 13: at these issues together. And I think that a part 397 00:21:44,840 --> 00:21:47,359 Speaker 13: of that, we'll be looking at all of the permitting 398 00:21:47,440 --> 00:21:51,359 Speaker 13: and the regulatory hurdles that need to be cleared in 399 00:21:51,480 --> 00:21:54,720 Speaker 13: order for these massive power plants and data centers to 400 00:21:54,840 --> 00:21:58,760 Speaker 13: even be fathom for one to even fathom them being 401 00:21:58,800 --> 00:22:00,600 Speaker 13: built in the US, just in terms of like the 402 00:22:00,680 --> 00:22:03,440 Speaker 13: environmental permits and the space. 403 00:22:04,160 --> 00:22:06,240 Speaker 6: Blue Boslindann, thank you very much. 404 00:22:13,640 --> 00:22:15,840 Speaker 8: I'll come back to Bluebog technology. I'm Caroline Hid in 405 00:22:15,920 --> 00:22:16,280 Speaker 8: New York. 406 00:22:16,720 --> 00:22:18,280 Speaker 6: Mamed Lalalo in San Francisco. 407 00:22:18,520 --> 00:22:21,240 Speaker 8: The day is here, ed fed day two pm. 408 00:22:21,400 --> 00:22:23,720 Speaker 3: Will we get a rate cut to the junior twenty 409 00:22:23,760 --> 00:22:26,080 Speaker 3: five or fifty basis points that is what the market 410 00:22:26,280 --> 00:22:29,520 Speaker 3: weighs and watches for and we currently just tread water 411 00:22:29,640 --> 00:22:31,160 Speaker 3: basically on the Nasdaq one hundred. 412 00:22:31,200 --> 00:22:32,879 Speaker 8: We're off by a tenth of a percent. 413 00:22:33,240 --> 00:22:36,119 Speaker 3: Now there is some concerns the risk a version building 414 00:22:36,160 --> 00:22:38,040 Speaker 3: is to what it means for technology once we get 415 00:22:38,040 --> 00:22:39,680 Speaker 3: those rate cuts. Let's move on and look at the 416 00:22:39,720 --> 00:22:42,040 Speaker 3: individual movers, because actually on the higher side, we have 417 00:22:42,119 --> 00:22:45,040 Speaker 3: got Apple powering higher today and this is the biggest 418 00:22:45,080 --> 00:22:47,600 Speaker 3: lift from a points perspective, or up one point seven percent. 419 00:22:47,880 --> 00:22:49,760 Speaker 3: So all eyes on those mags seven names and where 420 00:22:49,760 --> 00:22:51,880 Speaker 3: they can continue to run in the way that we've 421 00:22:51,880 --> 00:22:54,320 Speaker 3: been so used to even with a hiking cycle. We're 422 00:22:54,320 --> 00:22:58,200 Speaker 3: looking at for you, ed Ubisoft, I do Star Wars Outlaws. 423 00:22:58,200 --> 00:23:00,000 Speaker 3: There's been a lot of worries about this new game. 424 00:23:00,240 --> 00:23:03,160 Speaker 3: And actually for once we've got bmo annas they're saying 425 00:23:03,200 --> 00:23:05,879 Speaker 3: it is so cheap now this French name of maker 426 00:23:06,240 --> 00:23:08,800 Speaker 3: of of course in the latest games that we've got 427 00:23:08,840 --> 00:23:10,760 Speaker 3: to be buying in it jumps more than six percent. 428 00:23:10,800 --> 00:23:13,120 Speaker 3: Remember it is down about fifty percent year to date though, 429 00:23:13,280 --> 00:23:16,040 Speaker 3: And I'm looking at Alphabet just treading water also ahead 430 00:23:16,040 --> 00:23:18,920 Speaker 3: of the FED. But there's been some interesting micro news. Yes, 431 00:23:18,960 --> 00:23:21,639 Speaker 3: there's a YouTube creator's event happening right here in New 432 00:23:21,720 --> 00:23:24,680 Speaker 3: York and some unveilings there. But there's a key event 433 00:23:24,720 --> 00:23:27,159 Speaker 3: that happened earlier in Europe and you got the details. 434 00:23:27,640 --> 00:23:27,880 Speaker 6: Yep. 435 00:23:27,920 --> 00:23:30,840 Speaker 4: Google won a court fight with the European Union over 436 00:23:30,880 --> 00:23:34,440 Speaker 4: a one point seven billion dollar fine for illegally stopping 437 00:23:34,520 --> 00:23:37,720 Speaker 4: rivals from placing ads on third party websites. The court 438 00:23:37,800 --> 00:23:42,040 Speaker 4: cited key mistakes in the original twenty nineteen pro Bloomberg. 439 00:23:42,119 --> 00:23:45,000 Speaker 4: Sam Stalton joins us from Brussels. So this is a 440 00:23:45,040 --> 00:23:49,280 Speaker 4: positive outcome for Google. Explain the basics of the court's decision. 441 00:23:50,320 --> 00:23:52,840 Speaker 14: Yeah, so it is actually quite a rare win for 442 00:23:52,920 --> 00:23:56,080 Speaker 14: Google in the European Union's courts. Here, it's important to 443 00:23:56,080 --> 00:23:58,040 Speaker 14: say this is a win in the lower tier court 444 00:23:58,520 --> 00:24:01,400 Speaker 14: as the EU General Court in Luxembourg, So the decision 445 00:24:01,440 --> 00:24:04,320 Speaker 14: can actually be appealed to the European Court of Justice, 446 00:24:04,359 --> 00:24:07,760 Speaker 14: which is the bloc's highest court. Effectively, this one point 447 00:24:07,800 --> 00:24:12,520 Speaker 14: seven billion dollar fine was slapped on Google in twenty 448 00:24:12,640 --> 00:24:16,760 Speaker 14: nineteen after EU Antitrust Chief Magadeta Vestage said that it 449 00:24:16,800 --> 00:24:20,440 Speaker 14: was illegally preventing rival search engines run by the likes 450 00:24:20,440 --> 00:24:25,000 Speaker 14: of Yahoo and Microsoft from placing ads on websites like 451 00:24:25,280 --> 00:24:30,480 Speaker 14: online newspapers, travel platforms and blogs, etc. But now, of 452 00:24:30,480 --> 00:24:33,480 Speaker 14: course that one point seven billion dollar fine has been 453 00:24:33,480 --> 00:24:36,800 Speaker 14: struck out by EU judges, who, as you've just said, 454 00:24:37,320 --> 00:24:41,600 Speaker 14: cited a number of errors in the Commission's investigations, including 455 00:24:41,640 --> 00:24:45,159 Speaker 14: in their definitions of certain things like market definition and 456 00:24:45,200 --> 00:24:48,320 Speaker 14: the duration of the alleged abusive behavior. 457 00:24:48,600 --> 00:24:51,600 Speaker 3: Yeah, I mean Google itself funnily enough, saying they're pleased 458 00:24:51,880 --> 00:24:54,879 Speaker 3: with this response. They said it really factored on a 459 00:24:55,080 --> 00:24:58,320 Speaker 3: very narrow subset of text only search ads, and basically 460 00:24:58,320 --> 00:25:01,680 Speaker 3: they've gone back and changed the con tracks from twenty sixteen. 461 00:25:02,200 --> 00:25:05,439 Speaker 3: But this isn't the only focus on ad tech and 462 00:25:05,480 --> 00:25:07,879 Speaker 3: its power within that space, not just in Europe but 463 00:25:07,880 --> 00:25:08,959 Speaker 3: also in the US. 464 00:25:09,840 --> 00:25:10,119 Speaker 1: Yeah. 465 00:25:10,119 --> 00:25:14,080 Speaker 14: Indeed, so you have too parallel I suppose fronts really 466 00:25:14,119 --> 00:25:17,760 Speaker 14: on Google's advertising technology business. So the case today was 467 00:25:17,760 --> 00:25:21,919 Speaker 14: really more about display advertising, but when it comes to 468 00:25:22,040 --> 00:25:26,000 Speaker 14: advertising technologies, there's a much more if you like, existential 469 00:25:26,119 --> 00:25:30,600 Speaker 14: risk to Google's long term sustainability in these types of markets. 470 00:25:30,680 --> 00:25:34,399 Speaker 14: You have the Department of Justice case that's obviously in 471 00:25:34,480 --> 00:25:37,359 Speaker 14: broad in legal proceedings at the moments, but also in 472 00:25:37,400 --> 00:25:40,720 Speaker 14: the European Union they have their own investigation open into 473 00:25:40,760 --> 00:25:46,639 Speaker 14: Google's advertising technologies, which we assume could lead to an 474 00:25:46,680 --> 00:25:50,480 Speaker 14: eventual breakup order potentially in the coming months. That's an 475 00:25:50,520 --> 00:25:54,159 Speaker 14: investigation that still needs to be concluded. That the European 476 00:25:54,160 --> 00:25:56,880 Speaker 14: Commission is certainly making progress on what would be its 477 00:25:57,040 --> 00:26:03,040 Speaker 14: fourth investigation into Google business and potential abuses of dominance. 478 00:26:04,000 --> 00:26:07,000 Speaker 3: Samas Dalton me, thank you so much on all things 479 00:26:07,040 --> 00:26:10,080 Speaker 3: EU versus big tech. Let's talk about what's happening on 480 00:26:10,119 --> 00:26:12,320 Speaker 3: the hill in big tech because tech firms will be 481 00:26:12,400 --> 00:26:15,119 Speaker 3: the focus of a US Senate Intelligence Committee hearing on 482 00:26:15,359 --> 00:26:19,200 Speaker 3: election threats. Executives from the likes of Google, but also 483 00:26:19,280 --> 00:26:21,480 Speaker 3: Microsoft and Meta are all set to appear. 484 00:26:21,680 --> 00:26:22,159 Speaker 6: It emerges. 485 00:26:22,240 --> 00:26:25,440 Speaker 3: Jackie Davilas joins us from DC with more who expected 486 00:26:25,480 --> 00:26:26,120 Speaker 3: to hear from today? 487 00:26:26,160 --> 00:26:30,600 Speaker 15: Jackie, Well, while everyone's tuning into the FED decision, I'm 488 00:26:30,640 --> 00:26:33,560 Speaker 15: going to be on Capitol Hill at that Senate Intelligence 489 00:26:33,560 --> 00:26:38,400 Speaker 15: Committee hearing, and we're expected to see executives like Google's 490 00:26:38,480 --> 00:26:43,200 Speaker 15: Can't Walker, Metas, Nick Clegg, and Microsoft's president Brad Smith. 491 00:26:43,400 --> 00:26:46,159 Speaker 15: And really what the focus here today will be what 492 00:26:46,600 --> 00:26:50,800 Speaker 15: is the role and responsibility of tech companies in detecting 493 00:26:51,200 --> 00:26:55,480 Speaker 15: misinformation and disinformation online, particularly as it relates to foreign 494 00:26:55,920 --> 00:26:59,760 Speaker 15: interference in our elections, and this has been a key 495 00:27:00,040 --> 00:27:03,680 Speaker 15: focus for this bipartisan panel. It's chaired by a Democrat, 496 00:27:03,760 --> 00:27:06,800 Speaker 15: Mark Warner from Virginia, and the vice chair is Marco 497 00:27:06,920 --> 00:27:10,280 Speaker 15: Rubio from Florida. This is an issue that both sides 498 00:27:10,320 --> 00:27:12,280 Speaker 15: of the isle care about, and what they want to 499 00:27:12,320 --> 00:27:15,399 Speaker 15: understand is what have companies been doing to fulfill their 500 00:27:15,440 --> 00:27:20,480 Speaker 15: commitments to detect this kind of interference in elections online. Now, 501 00:27:20,600 --> 00:27:24,919 Speaker 15: just yesterday, very timely, Microsoft published a detailed report that 502 00:27:25,040 --> 00:27:31,560 Speaker 15: showed that Russia was actually spreading phony videos online that 503 00:27:31,640 --> 00:27:36,040 Speaker 15: we're targeting Vice President Kamala Harris's campaign. And this is 504 00:27:36,119 --> 00:27:38,760 Speaker 15: just kind of the type of report that you've seen 505 00:27:38,920 --> 00:27:41,639 Speaker 15: some tech companies come out and publish and say this 506 00:27:41,760 --> 00:27:44,960 Speaker 15: is what we're seeing from our end of things. Open 507 00:27:44,960 --> 00:27:47,880 Speaker 15: AI and May also released a similar report that says 508 00:27:47,920 --> 00:27:52,720 Speaker 15: they detected some foreign interference from actors like China, Iran 509 00:27:52,920 --> 00:27:57,640 Speaker 15: in Israel in trying to change political discourse around the world. Now, 510 00:27:57,760 --> 00:28:00,800 Speaker 15: open ai won't be present at the hearing today, but 511 00:28:00,920 --> 00:28:04,440 Speaker 15: this is the kind of report and action that senators 512 00:28:04,480 --> 00:28:07,680 Speaker 15: want to hear. You know that the companies are proactively 513 00:28:07,760 --> 00:28:11,440 Speaker 15: doing to prevent this kind of disinformation from proliferating. 514 00:28:13,160 --> 00:28:17,800 Speaker 4: What the US voter Bloomberg Technology audience member might ask is, well, 515 00:28:17,840 --> 00:28:20,639 Speaker 4: hold on, it's less than two months until the election. 516 00:28:21,200 --> 00:28:24,480 Speaker 4: So is this great Senate hearing with these technology executives 517 00:28:24,800 --> 00:28:27,600 Speaker 4: going to have a focus or an impact on the 518 00:28:27,680 --> 00:28:30,680 Speaker 4: upcoming presidential election or is the idea it's bigger picture, 519 00:28:31,000 --> 00:28:33,560 Speaker 4: the integrity of our election's longer term. 520 00:28:33,640 --> 00:28:38,720 Speaker 15: Jackie both ed and that's exactly right. I think Russia 521 00:28:38,880 --> 00:28:42,520 Speaker 15: is such a focus for this committee on both sides 522 00:28:42,560 --> 00:28:46,560 Speaker 15: of the aisle. They've clearly been trying to sway US 523 00:28:46,680 --> 00:28:50,520 Speaker 15: elections even before this upcoming one in November. But what 524 00:28:50,640 --> 00:28:54,280 Speaker 15: you're saying exactly, it's this integrity, you know, our institution 525 00:28:55,240 --> 00:28:58,000 Speaker 15: in people's ability to believe that what they see online 526 00:28:58,080 --> 00:29:00,880 Speaker 15: is actually true. Now, we don't have a lot of 527 00:29:00,920 --> 00:29:04,160 Speaker 15: time before the election, but as you know, things spread 528 00:29:04,240 --> 00:29:07,680 Speaker 15: so quickly online, especially in this new age of generative AI, 529 00:29:07,760 --> 00:29:10,520 Speaker 15: and so whatever they can to do to at least 530 00:29:10,600 --> 00:29:14,800 Speaker 15: put the spotlight on companies so they can proactively move 531 00:29:14,920 --> 00:29:18,360 Speaker 15: and detect and prevent this kind of stuff from making 532 00:29:18,360 --> 00:29:20,960 Speaker 15: it onto our phones in a second. I mean, it's 533 00:29:21,000 --> 00:29:24,080 Speaker 15: an effort, but will it be effective is yet to 534 00:29:24,120 --> 00:29:24,520 Speaker 15: be seen. 535 00:29:24,880 --> 00:29:26,640 Speaker 3: Taylor Swift has had rather a lot to say about it. 536 00:29:26,640 --> 00:29:29,600 Speaker 3: Of late Bloomberg's Jackie Devilos, We thank you and have 537 00:29:29,640 --> 00:29:30,760 Speaker 3: we got coming out? 538 00:29:31,120 --> 00:29:33,520 Speaker 4: Some more news headlines from around the world. It's time 539 00:29:33,560 --> 00:29:36,800 Speaker 4: for talking tech us up. Amazon named SAMMYA. Kumar is 540 00:29:36,840 --> 00:29:40,600 Speaker 4: its new head of consumer business in India starting October first. 541 00:29:40,680 --> 00:29:44,040 Speaker 4: Kumar joined Amazon in nineteen ninety nine and also leads 542 00:29:44,040 --> 00:29:48,080 Speaker 4: the consumer businesses for the Middle East, South Africa and Turkey. 543 00:29:48,240 --> 00:29:48,520 Speaker 6: Plus. 544 00:29:48,600 --> 00:29:51,720 Speaker 4: JP Morgan's in discussions with Apple to take over their 545 00:29:51,760 --> 00:29:54,400 Speaker 4: credit card portfolio from Goldman Sachs. 546 00:29:54,520 --> 00:29:56,240 Speaker 6: JP Morgan among a slew of. 547 00:29:56,200 --> 00:29:59,040 Speaker 4: Credit card issuers that have looked to take over the 548 00:29:59,040 --> 00:30:02,400 Speaker 4: Apple card, which launched with Goldman five years ago and 549 00:30:02,520 --> 00:30:05,840 Speaker 4: is now seeking to look elsewhere. And hackers behind a 550 00:30:05,840 --> 00:30:10,040 Speaker 4: cyber attack of drug distributor Senkora were paid seventy five 551 00:30:10,080 --> 00:30:11,120 Speaker 4: million dollar dollars. 552 00:30:11,120 --> 00:30:12,280 Speaker 6: That's according to sources. 553 00:30:12,440 --> 00:30:15,640 Speaker 4: The payment was made in three installments in bitcoin and 554 00:30:15,800 --> 00:30:19,560 Speaker 4: is the largest known cyber extortion payment ever made. 555 00:30:19,880 --> 00:30:24,400 Speaker 3: Caroline Wow coming up twenty three and Me's entire board 556 00:30:25,080 --> 00:30:27,960 Speaker 3: so Special Purpose Forward just quit in protest of the 557 00:30:28,000 --> 00:30:28,880 Speaker 3: CEO's plans. 558 00:30:28,880 --> 00:30:31,000 Speaker 8: To take the company private. Details. 559 00:30:31,040 --> 00:30:32,840 Speaker 9: Next, this is bluem Meg Technology. 560 00:30:45,640 --> 00:30:48,440 Speaker 3: We're watching shares of twenty three and mes actually rebounding 561 00:30:48,520 --> 00:30:53,160 Speaker 3: after well seven all of them. Independent board members resigned 562 00:30:53,200 --> 00:30:57,960 Speaker 3: yesterday protesting CEO and Rajiski's plan to take the company private, 563 00:30:58,400 --> 00:31:01,200 Speaker 3: and the directors said that there hasn't been any notable 564 00:31:01,200 --> 00:31:04,400 Speaker 3: progress on presenting a proposal. Who most Leanna Baker has 565 00:31:04,440 --> 00:31:06,120 Speaker 3: more on this. I mean it's only up two percent 566 00:31:06,280 --> 00:31:08,880 Speaker 3: and it has been under pressure. This is extraordinary. It 567 00:31:08,920 --> 00:31:11,640 Speaker 3: was a special committee to analyze whether or not a 568 00:31:11,680 --> 00:31:14,560 Speaker 3: deal would look good and clearly they're voting with their feet. 569 00:31:15,040 --> 00:31:19,600 Speaker 16: So it's an interesting situation. And Anne Rodjiski actually controls 570 00:31:19,640 --> 00:31:21,640 Speaker 16: the company, she controls the vote, so it's all up 571 00:31:21,640 --> 00:31:24,120 Speaker 16: to her what happens. But a special committee did form 572 00:31:24,440 --> 00:31:26,960 Speaker 16: and they've been waiting for a fully financed offer to 573 00:31:26,960 --> 00:31:28,920 Speaker 16: come in and that just hasn't happened yet. So it 574 00:31:28,920 --> 00:31:32,200 Speaker 16: seems like they're frustrated. And some of these big Silicon 575 00:31:32,280 --> 00:31:35,080 Speaker 16: Valley names are on the board, like Sequoia's role if 576 00:31:35,120 --> 00:31:39,360 Speaker 16: the Botha has resigned in others, so we'll see what happens. 577 00:31:39,360 --> 00:31:42,600 Speaker 16: But Anne wojisk does so want to take the company private, 578 00:31:42,720 --> 00:31:44,800 Speaker 16: and really the balls in her court because she has 579 00:31:44,880 --> 00:31:46,240 Speaker 16: a control of the situation. 580 00:31:47,520 --> 00:31:50,719 Speaker 4: It's one hundred and eighty million dollars less than market 581 00:31:50,720 --> 00:31:54,960 Speaker 4: cap company trading at thirty five cents a share, nowhere 582 00:31:55,000 --> 00:31:58,240 Speaker 4: near it's seventeen dollars sixty five cents peak. Doesn't seem 583 00:31:58,240 --> 00:32:00,360 Speaker 4: that hard. I mean, what do we know about the 584 00:32:00,400 --> 00:32:03,200 Speaker 4: financing package. Who's going to be getting involved in the 585 00:32:03,240 --> 00:32:04,200 Speaker 4: take private Leanna. 586 00:32:05,000 --> 00:32:07,520 Speaker 16: At this point, we don't know who would be involved, 587 00:32:07,520 --> 00:32:10,600 Speaker 16: but we know that Wajiski has bid forty cents a share, 588 00:32:10,600 --> 00:32:12,959 Speaker 16: which is above where the stock is trading, although it 589 00:32:13,000 --> 00:32:16,000 Speaker 16: is sort of a penny stock. You remember that this 590 00:32:16,080 --> 00:32:19,120 Speaker 16: company went public through a SPAC deal and it did 591 00:32:19,160 --> 00:32:22,120 Speaker 16: have high profile backers before, like Richard Branson and other 592 00:32:22,480 --> 00:32:25,200 Speaker 16: big names. But at that point it was worth several billion. 593 00:32:25,280 --> 00:32:29,080 Speaker 16: Now it's just a fraction of that. And we'll see. 594 00:32:29,280 --> 00:32:31,600 Speaker 16: For now, the special committee has a banker. We're not 595 00:32:31,720 --> 00:32:34,560 Speaker 16: aware if the company itself is exploring a sale, but 596 00:32:34,760 --> 00:32:37,920 Speaker 16: Wojiski has said she is open to other offers. So 597 00:32:38,200 --> 00:32:40,200 Speaker 16: it could make sense for this company, out of the 598 00:32:40,200 --> 00:32:43,120 Speaker 16: limelight of the public markets, to sort of reset and 599 00:32:43,160 --> 00:32:45,240 Speaker 16: potentially restructure to return to growth. 600 00:32:46,360 --> 00:32:48,960 Speaker 4: Blom Bose Leanna Baker, who leads our deal's team, thank 601 00:32:49,000 --> 00:32:49,680 Speaker 4: you very much. 602 00:32:49,760 --> 00:32:50,680 Speaker 6: Just get some more news. 603 00:32:50,760 --> 00:32:55,600 Speaker 4: KKR and Goldman backed home renovation startup live Space is 604 00:32:55,640 --> 00:32:59,560 Speaker 4: getting closer to going public. The platform connects customers we've 605 00:32:59,560 --> 00:33:03,800 Speaker 4: designed for home makeovers in markets like India and Singapore. 606 00:33:03,880 --> 00:33:06,600 Speaker 4: Expects its first net income in the first quarter of 607 00:33:06,600 --> 00:33:09,720 Speaker 4: twenty twenty five. Live Space skits eighty five percent of 608 00:33:09,720 --> 00:33:11,960 Speaker 4: its revenue from that India market. 609 00:33:12,120 --> 00:33:13,480 Speaker 6: Carol, Let's talk. 610 00:33:13,320 --> 00:33:16,520 Speaker 3: About someone who's probably eyeing the IPO market and indeed 611 00:33:16,800 --> 00:33:19,480 Speaker 3: the venture landscape. Some with a lot of expertise, like 612 00:33:19,560 --> 00:33:22,960 Speaker 3: Goreguaz with us Bryden Park Capital partner co founder just 613 00:33:22,960 --> 00:33:24,800 Speaker 3: made a recent JO one and fifty million dollar investment, 614 00:33:24,840 --> 00:33:28,520 Speaker 3: for example, in the ticketing marketplace Tippic. And you have 615 00:33:28,840 --> 00:33:33,000 Speaker 3: significant expertise having run big tech businesses yourself. Mike, what 616 00:33:33,080 --> 00:33:35,400 Speaker 3: do you think of the IPO landscape? Are we going 617 00:33:35,440 --> 00:33:37,080 Speaker 3: to rev back up post election? 618 00:33:38,280 --> 00:33:40,840 Speaker 12: You know, I think it's a it's a strange environment 619 00:33:40,920 --> 00:33:43,560 Speaker 12: where in order to go public now, I think there's 620 00:33:43,600 --> 00:33:47,320 Speaker 12: a bigger burden for quality and I think that there's 621 00:33:47,400 --> 00:33:50,360 Speaker 12: so many companies that have gotten to rule of forty. 622 00:33:50,840 --> 00:33:54,680 Speaker 12: They're proven, the big can managed customers that they're SaaS companies, 623 00:33:54,720 --> 00:33:57,680 Speaker 12: they've been through several renewal cycles. I think we're going 624 00:33:57,760 --> 00:34:01,520 Speaker 12: to see a lot of companies, you know, running out 625 00:34:01,560 --> 00:34:04,480 Speaker 12: to an IPO, and there's a lot of investors that 626 00:34:04,520 --> 00:34:08,160 Speaker 12: are looking for liquidity, So the pressure between the companies 627 00:34:08,160 --> 00:34:12,479 Speaker 12: being stronger proven as well as you know investors looking 628 00:34:12,480 --> 00:34:14,520 Speaker 12: for liquidity. I think you're to see a number of 629 00:34:14,560 --> 00:34:16,560 Speaker 12: IPOs come out in the new year. 630 00:34:16,920 --> 00:34:19,400 Speaker 3: All of forty being and your revenue growth rate, profit 631 00:34:19,480 --> 00:34:23,520 Speaker 3: margin being at least forty percent, so looking strong and resilient. 632 00:34:24,120 --> 00:34:26,080 Speaker 3: Where then do you make your bets in the very 633 00:34:26,120 --> 00:34:29,480 Speaker 3: early stages we just talked about how you assigning money 634 00:34:29,520 --> 00:34:31,279 Speaker 3: to take pic to be able to take on the 635 00:34:31,360 --> 00:34:34,840 Speaker 3: nights of oh cee Geek and other areas, to buy 636 00:34:35,040 --> 00:34:38,560 Speaker 3: tickets to real life events where else looks at appetizing 637 00:34:38,640 --> 00:34:39,920 Speaker 3: right now, Mike, I. 638 00:34:39,880 --> 00:34:42,600 Speaker 12: Think you have to have a philosophy and a thesis 639 00:34:42,640 --> 00:34:44,880 Speaker 12: of where you want to invest in. You don't definitely 640 00:34:44,880 --> 00:34:47,719 Speaker 12: don't want to be investing in what's happened in the 641 00:34:47,760 --> 00:34:52,200 Speaker 12: past or incremental solutions to legacy systems. You want to 642 00:34:52,200 --> 00:34:56,799 Speaker 12: be into difficult, high ip hard problems to solve, and 643 00:34:56,840 --> 00:34:58,520 Speaker 12: when you take a look at that, you know the 644 00:34:58,600 --> 00:35:01,319 Speaker 12: areas that we think are soon exciting is anything to 645 00:35:01,360 --> 00:35:05,239 Speaker 12: do with AI and being on the place of AI, 646 00:35:05,320 --> 00:35:07,759 Speaker 12: where we're trying to help companies solve bigger problems that 647 00:35:07,800 --> 00:35:11,880 Speaker 12: have never been solved before, or adding massive value to 648 00:35:12,239 --> 00:35:15,480 Speaker 12: problems that currently exist, but doing it better, faster, or cheaper. 649 00:35:15,920 --> 00:35:18,640 Speaker 12: We have a handful of investments that we've done along 650 00:35:18,719 --> 00:35:20,920 Speaker 12: that those ways. You take a look at a company, 651 00:35:20,920 --> 00:35:23,840 Speaker 12: we have Corelogics. It started off as a logs company 652 00:35:24,600 --> 00:35:27,760 Speaker 12: and they've added three new products that are massive tams. 653 00:35:28,440 --> 00:35:31,840 Speaker 12: Silver Fort in the identity management space. If there's anything 654 00:35:31,880 --> 00:35:33,839 Speaker 12: that you want to be paying attention to right now 655 00:35:34,280 --> 00:35:37,399 Speaker 12: is zero trust and identity management. And when you take 656 00:35:37,400 --> 00:35:39,719 Speaker 12: a look at how Silverfort solved that problem, they've done 657 00:35:39,719 --> 00:35:41,479 Speaker 12: it in a way nobody else has ever been able 658 00:35:41,480 --> 00:35:44,400 Speaker 12: to do it before. You know they can solve you know, 659 00:35:44,600 --> 00:35:47,759 Speaker 12: multi factor authentication, So the same thing that irritates us 660 00:35:47,800 --> 00:35:50,120 Speaker 12: alve where you put in your password and they send 661 00:35:50,120 --> 00:35:53,000 Speaker 12: you a text message. You can never do that for 662 00:35:53,160 --> 00:35:58,080 Speaker 12: service accounts or for on premise systems, and silver Fort 663 00:35:58,120 --> 00:36:02,120 Speaker 12: has absolutely nique technology to be able to do that 664 00:36:02,120 --> 00:36:04,719 Speaker 12: that nobody else really has. So you want to be 665 00:36:04,760 --> 00:36:07,200 Speaker 12: thinking of those types of things. How do you build 666 00:36:07,200 --> 00:36:10,279 Speaker 12: a big company when you start with a company that's 667 00:36:10,320 --> 00:36:11,440 Speaker 12: just got one product. 668 00:36:12,920 --> 00:36:16,799 Speaker 4: Having a focus on cybersecurities is not unique, Mike, But 669 00:36:16,840 --> 00:36:18,720 Speaker 4: we have loads of people in the show that say 670 00:36:19,200 --> 00:36:20,680 Speaker 4: it's right for disruption. 671 00:36:21,360 --> 00:36:23,520 Speaker 6: But it seems like a crowded field to me. 672 00:36:24,480 --> 00:36:28,160 Speaker 12: You're one hundred percent correct. I think I see two 673 00:36:28,239 --> 00:36:31,479 Speaker 12: or three things happening in cybersecurity. You know, everybody's moving 674 00:36:31,520 --> 00:36:35,319 Speaker 12: through this concept of XDR and the whole notion is 675 00:36:35,360 --> 00:36:38,879 Speaker 12: we've been actually pretty good at detecting, we haven't been 676 00:36:39,000 --> 00:36:43,160 Speaker 12: great at responding. And we have four million people in 677 00:36:43,160 --> 00:36:47,640 Speaker 12: the cybersecurity world right now that have experience in cybersecurity. 678 00:36:47,680 --> 00:36:48,520 Speaker 6: We need eight million. 679 00:36:48,920 --> 00:36:50,759 Speaker 12: There's no way we're going to be able to get 680 00:36:50,800 --> 00:36:54,040 Speaker 12: four million more people that are highly qualified in cybersecurity. 681 00:36:54,239 --> 00:36:56,640 Speaker 12: So it's going to have to come through automation. And 682 00:36:56,680 --> 00:37:00,160 Speaker 12: I think AI is gay play a significant role. 683 00:37:00,560 --> 00:37:04,239 Speaker 4: In making that happen, Mike, real quick, because I can't 684 00:37:04,239 --> 00:37:06,440 Speaker 4: resist it's what's it like being on a cap table 685 00:37:06,520 --> 00:37:07,560 Speaker 4: with Rory McElroy. 686 00:37:08,920 --> 00:37:10,840 Speaker 12: Well, Roy's a you know First of all, he is 687 00:37:10,840 --> 00:37:14,520 Speaker 12: an absolute gentleman, and he's actually very good investor in 688 00:37:14,880 --> 00:37:16,719 Speaker 12: You know, it's nice to have a celebrity like that, 689 00:37:16,840 --> 00:37:21,560 Speaker 12: especially a quality person of his nature associated. 690 00:37:20,920 --> 00:37:22,600 Speaker 1: With your firm. 691 00:37:22,920 --> 00:37:25,400 Speaker 4: Mike Grebuire of Brighton Park Capitol, really good to have 692 00:37:25,440 --> 00:37:34,719 Speaker 4: you on the program. 693 00:37:34,840 --> 00:37:36,239 Speaker 6: It's been more than fifty. 694 00:37:36,040 --> 00:37:39,319 Speaker 4: Years since an astronaut last walked on the Moon, but 695 00:37:39,440 --> 00:37:42,920 Speaker 4: this decade could see a number of countries attempt to 696 00:37:43,000 --> 00:37:46,160 Speaker 4: send humans back. So who's in the race and why now? 697 00:37:46,160 --> 00:37:48,440 Speaker 4: Bloomberg's Tom Gibson has more listen to this. 698 00:37:49,440 --> 00:37:53,120 Speaker 17: America plans to send four astronauts into Luna orbit, including 699 00:37:53,160 --> 00:37:55,919 Speaker 17: the first woman and first person of color, as part 700 00:37:55,960 --> 00:37:59,239 Speaker 17: of the Artemist program. This will set the stage for 701 00:37:59,280 --> 00:38:01,960 Speaker 17: the next artem mission to have people on the Moon 702 00:38:02,160 --> 00:38:05,640 Speaker 17: in the next few years. But while Neil Armstrong only 703 00:38:05,640 --> 00:38:08,360 Speaker 17: spent a few hours on the Moon, the Artemis astronauts 704 00:38:08,360 --> 00:38:11,160 Speaker 17: will be there for much longer, spending at least six 705 00:38:11,280 --> 00:38:15,080 Speaker 17: days on the lunar surface. China also hopes to have 706 00:38:15,080 --> 00:38:16,720 Speaker 17: people on the Moon by twenty thirty. 707 00:38:17,960 --> 00:38:22,840 Speaker 18: Jane Tongo kum Jiang Kirk with a Triniatian. 708 00:38:21,640 --> 00:38:26,400 Speaker 17: Die and has achieved a series of impressive firsts. It 709 00:38:26,560 --> 00:38:28,839 Speaker 17: was the first and so far only nation to land 710 00:38:28,880 --> 00:38:31,160 Speaker 17: on the far side of the Moon and the first 711 00:38:31,200 --> 00:38:33,280 Speaker 17: to send samples from there back to Earth. 712 00:38:36,120 --> 00:38:38,359 Speaker 18: Going to the fares side of the Moon is especially hard. 713 00:38:38,480 --> 00:38:43,720 Speaker 18: Of course, it never actually faces Earth, and so communicating 714 00:38:43,880 --> 00:38:46,239 Speaker 18: with anything on the farest side of the Moon is 715 00:38:46,360 --> 00:38:47,440 Speaker 18: really really hard. 716 00:38:47,920 --> 00:38:49,760 Speaker 17: All this has America worried. 717 00:38:50,280 --> 00:38:54,040 Speaker 19: I don't want China to get to the South Pool 718 00:38:54,239 --> 00:39:01,440 Speaker 19: first with humans and then say this is our stay out. 719 00:39:01,800 --> 00:39:07,680 Speaker 18: Bill Nelson, the NASSA administrator, has frequently referred to China's 720 00:39:07,719 --> 00:39:10,719 Speaker 18: policies here on Earth, in particular the South China Sea, 721 00:39:10,760 --> 00:39:13,439 Speaker 18: where China has said all these islands in the South 722 00:39:13,520 --> 00:39:16,680 Speaker 18: China Sea, they belong to us. Bill Nelson has said 723 00:39:16,719 --> 00:39:18,480 Speaker 18: in the same way that they did this grab in 724 00:39:18,520 --> 00:39:21,480 Speaker 18: the South China to see their potential that they would 725 00:39:21,480 --> 00:39:23,560 Speaker 18: try to do something on the Moon, and so we 726 00:39:23,640 --> 00:39:24,680 Speaker 18: have to make sure to stop that. 727 00:39:27,760 --> 00:39:31,560 Speaker 3: You can catch the full episode at Bloomberg dot com. 728 00:39:31,640 --> 00:39:34,640 Speaker 3: Now let's get back to the tech markets, because today 729 00:39:34,920 --> 00:39:39,200 Speaker 3: or here on Earth, is fed Decision Day primposed Shinani Bassek. Look, 730 00:39:39,800 --> 00:39:42,400 Speaker 3: you're looking across assets as you do on your show 731 00:39:42,560 --> 00:39:44,440 Speaker 3: day in day out. But we want to shine a 732 00:39:44,480 --> 00:39:47,360 Speaker 3: lens and what's happening with technology within the implication of 733 00:39:47,400 --> 00:39:48,160 Speaker 3: the bill market. 734 00:39:47,920 --> 00:39:50,080 Speaker 20: For example, absolutely, let's take a look at what's just 735 00:39:50,080 --> 00:39:52,120 Speaker 20: happened to the two year or for example, over the 736 00:39:52,120 --> 00:39:54,719 Speaker 20: past month, and what it's meant for technology stacks and 737 00:39:54,760 --> 00:39:57,480 Speaker 20: if there's been a relationship. The two year over the 738 00:39:57,560 --> 00:40:01,880 Speaker 20: past month has drastically fallen in terms of the yield 739 00:40:01,920 --> 00:40:03,920 Speaker 20: movement here more than forty basis points. If you could 740 00:40:03,960 --> 00:40:05,680 Speaker 20: take a look at that, you are down now to 741 00:40:05,760 --> 00:40:08,759 Speaker 20: three sixty five, with the market expecting that the Fed 742 00:40:08,800 --> 00:40:11,880 Speaker 20: would cut fifty basis points today. Of course you have 743 00:40:11,960 --> 00:40:15,439 Speaker 20: economists more in disagreement there, but with that pricing moves, 744 00:40:15,480 --> 00:40:17,240 Speaker 20: let's flip up the board and see what the SMP 745 00:40:17,360 --> 00:40:19,680 Speaker 20: and the NASDAC have done over that timeframe as well. 746 00:40:19,680 --> 00:40:20,719 Speaker 8: And in fact you have. 747 00:40:20,640 --> 00:40:23,320 Speaker 20: The Nasdaq outperforming or the S and P five hundred 748 00:40:23,400 --> 00:40:26,080 Speaker 20: rather outperforming the Nasdaq one hundred, but the S and 749 00:40:26,160 --> 00:40:29,640 Speaker 20: P five hundred really rising marginally and the NASAK flat 750 00:40:29,680 --> 00:40:32,359 Speaker 20: to lower. If you flip up the board one more 751 00:40:32,400 --> 00:40:34,600 Speaker 20: time here, because this is where you actually see that 752 00:40:34,680 --> 00:40:39,080 Speaker 20: move much more distinctly. The SMP equal weighted index, which 753 00:40:39,120 --> 00:40:42,160 Speaker 20: had reached a record yesterday, is up more than three 754 00:40:42,200 --> 00:40:45,719 Speaker 20: percent over that same timeframe. This is really paying more 755 00:40:45,760 --> 00:40:48,279 Speaker 20: attention to those companies outside of tech in a more 756 00:40:48,320 --> 00:40:51,720 Speaker 20: equal way. With a mag seven down one point seven percent, 757 00:40:51,800 --> 00:40:55,080 Speaker 20: even with that yield movement being so drastic on the 758 00:40:55,120 --> 00:40:59,040 Speaker 20: move lower, this Philadelphia Semiconductor Index down five point six percent, 759 00:40:59,040 --> 00:41:01,840 Speaker 20: almost five point seven percent, and only a handful of 760 00:41:01,840 --> 00:41:03,920 Speaker 20: stocks really in the green over that timeframe. So what 761 00:41:03,960 --> 00:41:06,080 Speaker 20: does that say At the beginning of the year, when 762 00:41:06,080 --> 00:41:08,399 Speaker 20: people have thought that a lower discount rate would really 763 00:41:08,440 --> 00:41:11,319 Speaker 20: fuel these tech sacks, that has not happened in the 764 00:41:11,360 --> 00:41:13,400 Speaker 20: past month. So what you really need then is a 765 00:41:13,400 --> 00:41:15,800 Speaker 20: new narrative that is based on earnings, that is based 766 00:41:15,800 --> 00:41:18,720 Speaker 20: on that AI payout and not as related to interest 767 00:41:18,800 --> 00:41:20,800 Speaker 20: rates as we had expected in the past. 768 00:41:20,800 --> 00:41:24,120 Speaker 4: Caroline Shnali I looked up from my desk this morning, 769 00:41:24,200 --> 00:41:26,320 Speaker 4: massive TV screen Bloomberg Open. 770 00:41:26,160 --> 00:41:27,959 Speaker 6: Interest, the show that you anchor. 771 00:41:28,080 --> 00:41:32,719 Speaker 4: Forwards fed's day, is here banner across the screen. How 772 00:41:32,840 --> 00:41:36,960 Speaker 4: palpable is the excitement, tension, anxiety of all the investors 773 00:41:36,960 --> 00:41:39,360 Speaker 4: you have on your show, particularly those that are focused 774 00:41:39,400 --> 00:41:39,799 Speaker 4: on tech. 775 00:41:40,400 --> 00:41:43,280 Speaker 20: Listen, it's fascinating because on one hand, the AI story 776 00:41:43,320 --> 00:41:45,640 Speaker 20: has dominated this market, has it not, And you felt 777 00:41:45,640 --> 00:41:49,080 Speaker 20: that excitement to shift away. Actually for a moment this morning, 778 00:41:49,200 --> 00:41:51,640 Speaker 20: ed away from that story about interest rates and towards 779 00:41:51,640 --> 00:41:54,160 Speaker 20: that text story because it is still driving so much 780 00:41:54,200 --> 00:41:55,960 Speaker 20: of the market. I think about what Kate Moore over 781 00:41:55,960 --> 00:41:58,920 Speaker 20: at Blackrock said, and this idea that perhaps people are 782 00:41:58,920 --> 00:42:00,799 Speaker 20: taking the chips off the table right now. They could 783 00:42:00,800 --> 00:42:03,200 Speaker 20: be taking the chicks off for a little bit longer, 784 00:42:03,520 --> 00:42:06,440 Speaker 20: but that doesn't take away from today. The idea that 785 00:42:06,480 --> 00:42:10,040 Speaker 20: we are on the precipice of a historic rate cutting 786 00:42:10,120 --> 00:42:12,600 Speaker 20: cycle twenty five or fifty at the end of the 787 00:42:12,640 --> 00:42:15,440 Speaker 20: day could cause some volatility, but the rate and the 788 00:42:15,520 --> 00:42:18,080 Speaker 20: path forward is what really matters at the end of 789 00:42:18,120 --> 00:42:21,000 Speaker 20: the day, complicated even more by an election in November. 790 00:42:21,360 --> 00:42:23,799 Speaker 8: Shanani Massek and thank you so much for talking us 791 00:42:23,800 --> 00:42:25,680 Speaker 8: through it all. That does it for this edition of 792 00:42:25,680 --> 00:42:26,560 Speaker 8: Bluebog Technology. 793 00:42:26,600 --> 00:42:30,200 Speaker 3: But look, as we expect that momentous decision, we're not 794 00:42:30,239 --> 00:42:31,760 Speaker 3: doing all that much. And then as that one hundred 795 00:42:32,000 --> 00:42:34,279 Speaker 3: by three tens percent, a little bit of anxiety ed. 796 00:42:35,040 --> 00:42:38,319 Speaker 4: I think that's what the market is called treading water anxiety. 797 00:42:38,840 --> 00:42:41,640 Speaker 4: But we're very excited a lots recap in the show 798 00:42:41,640 --> 00:42:43,520 Speaker 4: Away from the Fed recap the podcast. 799 00:42:43,719 --> 00:42:44,600 Speaker 6: You know where to find it. 800 00:42:44,560 --> 00:42:48,239 Speaker 4: On the Bloomberg platforms, on Apples, Spotify, and iHeart Big 801 00:42:48,239 --> 00:42:50,319 Speaker 4: thanks to the team out in New York City. Big 802 00:42:50,360 --> 00:42:53,239 Speaker 4: thank you to everyone here in SF. This is Bloomberg Technology.