WEBVTT - Helping Ukrainian Refugees and Apple Looking for New Chip Suppliers 0:00:02.960 --> 0:00:06.280 From the heart of where innovation, money and power collive 0:00:07.080 --> 0:00:11.600 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.680 --> 0:00:27.760 Emily Jay. I'm Emily changing San Francisco and this is 0:00:27.800 --> 0:00:31.440 Bloomberg Technology. Coming up in the next hour, sanctions piling 0:00:31.520 --> 0:00:35.960 on Russia and President Biden releasing an unprecedented amount of 0:00:36.159 --> 0:00:38.680 US oil. We will have the latest on what the 0:00:38.720 --> 0:00:41.800 White House is doing to booie the US and tech economy, 0:00:42.120 --> 0:00:46.720 and how some tech companies are helping Ukrainian refugees get 0:00:46.720 --> 0:00:50.840 back to work. Plus submits the ongoing chip crisis, Apple 0:00:50.880 --> 0:00:54.080 looking for new chip suppliers even in China. We'll talk 0:00:54.080 --> 0:00:57.800 about why the iPhone maker is expanding its roster. Next, 0:00:58.920 --> 0:01:01.880 and a fledgely Union takes an early lead in an 0:01:01.920 --> 0:01:05.720 election to unionize an Amazon warehouse in New York, while 0:01:05.760 --> 0:01:09.560 the Union trails in a separate election in Alabama. Will 0:01:09.600 --> 0:01:12.480 have the latest. Let's get an update now on the 0:01:12.520 --> 0:01:16.360 war in Ukraine. As sanctions on Russian mount President Biden 0:01:16.360 --> 0:01:18.959 now plans to release a million barrels of oil a 0:01:19.080 --> 0:01:22.440 day from US reserves for six months to reduce US 0:01:22.520 --> 0:01:26.240 dependents on foreign supplies. Bloomber Examily Wilkins on the hill 0:01:26.440 --> 0:01:29.920 joining us now with more details on this, and Emily 0:01:29.959 --> 0:01:31.600 talked to us a little bit more about the President's 0:01:31.640 --> 0:01:33.960 plan and how much of an impact it will actually 0:01:34.000 --> 0:01:39.000 have on everyday Americans. So we've already seen President Biden 0:01:39.200 --> 0:01:43.000 go to these oil reserves and tried to release barrels before, 0:01:43.000 --> 0:01:45.080 trying to ease some of the pressure that we're seen 0:01:45.200 --> 0:01:47.800 with oil and gas prices. But this is going to 0:01:47.800 --> 0:01:50.400 be bigger than anything we've seen. I mean, those last 0:01:50.480 --> 0:01:53.720 releases were about I think thirty million, sixty million barrels. 0:01:53.840 --> 0:01:55.920 This is going to be a hundred eighty million when 0:01:56.000 --> 0:01:59.480 all is said and done, released roughly a million barrels 0:01:59.520 --> 0:02:02.320 of oil per day. And this comes as both the 0:02:02.440 --> 0:02:05.520 US is struggling right now with high gas prices trying 0:02:05.520 --> 0:02:07.360 to figure out a way to bring those back down 0:02:07.400 --> 0:02:10.880 with inflation, plus the war in Ukraine. But there's also 0:02:10.919 --> 0:02:14.680 struggles right now going on in Europe. Of Russian President 0:02:14.760 --> 0:02:18.080 Vladimir Putin has announced that if they want to pay 0:02:18.160 --> 0:02:20.639 for Russian gas, it's going to have to be in rubles. 0:02:20.880 --> 0:02:23.440 That could potentially be a huge problem for a lot 0:02:23.520 --> 0:02:26.640 of the European allies that President Biden has tried to 0:02:26.680 --> 0:02:29.560 make sure that he's moving with as he goes forward. 0:02:29.840 --> 0:02:31.639 So I think a lot of questions about what's going 0:02:31.680 --> 0:02:34.639 to happen next for a number of European countries, particularly 0:02:34.639 --> 0:02:37.560 Germany that really do rely on a lot of Russian 0:02:37.560 --> 0:02:41.880 oil Emily. President Biden also taking some steps to help 0:02:41.919 --> 0:02:45.600 alleviate pressure on US companies with regard to the chip 0:02:45.919 --> 0:02:50.440 crisis and a potential crisis in electric car batteries by 0:02:50.440 --> 0:02:54.320 invoking the Defense Production Act. Tell us about that. Yeah, 0:02:54.320 --> 0:02:56.480 so this is an act. It's been used before by 0:02:56.520 --> 0:02:58.840 Biden as well as by other presidents, and really to 0:02:58.880 --> 0:03:01.560 sort of help industry ease that need a little bit 0:03:01.600 --> 0:03:04.560 of a boost. And right now, the electric vehicle battery 0:03:04.639 --> 0:03:08.280 industry is something that you've seen concerns about from lawmakers 0:03:08.320 --> 0:03:10.760 on both sides of the aisle. They've written Biden, they've 0:03:10.800 --> 0:03:13.760 asked him to go ahead and invoke this act to 0:03:13.800 --> 0:03:17.560 really make sure that they're bolstering electric vehicles continuing their 0:03:17.600 --> 0:03:19.880 push there. I mean, this is something again, it ties 0:03:19.919 --> 0:03:22.240 into the energy, It ties into the high prices of 0:03:22.280 --> 0:03:25.400 oil and gas that we're currently seen, and it's also 0:03:25.560 --> 0:03:28.120 something that Biden was initially kind of reluctant to do 0:03:28.280 --> 0:03:31.720 because of concerns from environmental groups, and it shows just 0:03:31.760 --> 0:03:34.000 how much pressure the White House is now under to 0:03:34.080 --> 0:03:37.320 address some of these concerns. All right, Emily Wilkins for 0:03:37.440 --> 0:03:41.120 US at the Capital. Emily, thank you for that update. Meantime, 0:03:41.240 --> 0:03:45.680 Ukrainian refugees continue to fleep and estimated four million so far, 0:03:45.880 --> 0:03:49.040 and tech companies have not only been cutting off operations 0:03:49.120 --> 0:03:52.920 in Russia but also stepping in to help these refugees. 0:03:53.320 --> 0:03:56.760 Smart Recruiters, for instance, which has an office in crack Out, Poland, 0:03:56.760 --> 0:04:00.520 has been sheltering refugees while its employees have been faring 0:04:00.640 --> 0:04:03.600 them to and from the Ukrainian border, even bringing them 0:04:03.640 --> 0:04:06.600 into their own homes. The company is also working to 0:04:06.600 --> 0:04:10.440 help refugees re enter the workforce and start rebuilding their lives. 0:04:10.600 --> 0:04:14.240 Smart Recruiters founder and CEO Jerome turn It joins us now. Jerome, 0:04:14.320 --> 0:04:17.599 thank you so much for joining us. Talk to me 0:04:17.640 --> 0:04:20.479 about the situation your office and crack Out right now 0:04:20.520 --> 0:04:23.960 and how your employees are stepping into help. Yeah, thank 0:04:24.000 --> 0:04:27.000 you for having me. Emilie. I think what's what really 0:04:27.040 --> 0:04:31.640 happened here has happened organic key really from the second 0:04:31.720 --> 0:04:35.440 day of the invasion, everybody in our Crack office film 0:04:35.440 --> 0:04:39.160 about a d and fifty employees in Crack, and everyone 0:04:39.240 --> 0:04:42.880 started to think, how can I help? And they started 0:04:42.880 --> 0:04:45.160 to drive their car back and forced to the border 0:04:45.720 --> 0:04:49.600 to pick up refugees. They then brought supplies as necessary, 0:04:49.720 --> 0:04:54.200 and as you pointed out, it quickly evolved to actually 0:04:54.240 --> 0:05:00.240 welcoming refugees in their homes. And at this moment, many 0:05:00.279 --> 0:05:02.960 of our employees, I would say, almost everybody who actually 0:05:03.000 --> 0:05:05.239 has a big enough living room or or a guest 0:05:05.680 --> 0:05:08.680 guest room has a family at home. Um, you know, 0:05:08.720 --> 0:05:12.440 one of our employer, I think, mind Matteo, actually welcomed 0:05:12.440 --> 0:05:15.600 the mom with your baby and an infant. They've been 0:05:15.680 --> 0:05:19.840 driving for six days throughout Ukraine before they reached a border, 0:05:20.520 --> 0:05:22.520 and he was able to bring them home and to 0:05:22.760 --> 0:05:26.760 provide shelter and food and baby food and strollers and 0:05:26.839 --> 0:05:30.279 a baby bed, like really the basics of welcoming. And 0:05:30.320 --> 0:05:34.320 it's been humbling, frankly to see how much people have 0:05:34.400 --> 0:05:38.560 stepped up in Poland, which, as Emily pointed as received 0:05:38.800 --> 0:05:43.240 the majority of the influx of refugees. I understand your 0:05:43.279 --> 0:05:46.679 office is trying to a sort of operation center of sorts. 0:05:46.720 --> 0:05:49.960 You're you're giving a stipend, a five stipend to employees 0:05:50.000 --> 0:05:53.800 to help. They are donating supplies of all kinds. Talk 0:05:53.839 --> 0:05:57.360 to us about how the refugees are doing once they 0:05:57.400 --> 0:06:01.359 get to you. Yeah, I mean, this is a dire 0:06:01.440 --> 0:06:07.560 situation for everyone. Many of them have actually arrived as 0:06:08.520 --> 0:06:13.520 a mother with children, older people, many men have stayed 0:06:13.560 --> 0:06:17.120 behind to fight um. So it is a dire situation. 0:06:17.240 --> 0:06:20.960 And I think one one light of hope here is 0:06:21.040 --> 0:06:24.280 the is the connection that has been built between the 0:06:24.320 --> 0:06:30.240 people of Poland and Europe in general and the Ukrainian refugees. 0:06:30.520 --> 0:06:34.240 Like the you know, our slack channel as an example, 0:06:34.360 --> 0:06:38.000 would match the age of a kid with who can 0:06:38.120 --> 0:06:40.000 help them? So you would have, oh, I have a 0:06:40.080 --> 0:06:42.000 mom here, she has an eight year old and a 0:06:42.040 --> 0:06:43.880 four year old, and somebody would say, oh, actually I 0:06:43.880 --> 0:06:45.599 have a year old and a four year old, bring 0:06:45.680 --> 0:06:48.839 them over. And so there's like a family feeling to 0:06:48.960 --> 0:06:53.520 it that that field try and at least provides the basics. 0:06:53.560 --> 0:06:57.880 But as these refugees set on, of course, it opens 0:06:57.960 --> 0:07:01.120 up the question of what is next them and and 0:07:01.200 --> 0:07:03.680 where do they go from there? Right, many of these 0:07:03.720 --> 0:07:07.480 refugees don't know where they're gonna be sleeping tomorrow, let 0:07:07.480 --> 0:07:10.800 alone what they're gonna do next. You are actually a 0:07:10.800 --> 0:07:15.160 recruiting company. You help match talent with employers. How are 0:07:15.200 --> 0:07:20.320 you helping these refugees re enter the workforce? Yeah? We 0:07:20.320 --> 0:07:24.360 we actually we are a recruiting platform and so we 0:07:24.480 --> 0:07:29.640 help large enterprises manage their recruiting, with several thousand enterprises 0:07:29.720 --> 0:07:34.400 using our software and collectively actually our customers higher almost 0:07:34.440 --> 0:07:37.240 a million people a year just in Europe. And so 0:07:37.280 --> 0:07:41.360 we felt really our responsibility, frankly, our our duty as 0:07:41.520 --> 0:07:45.080 as a as a business to actually help. And so 0:07:45.200 --> 0:07:49.520 what we've done here is we've actually created a fast 0:07:49.560 --> 0:07:54.800 track application for Ukrainian refugees so that anybody who applies 0:07:54.840 --> 0:07:58.440 can self identify as a refugee and then be put 0:07:58.440 --> 0:08:04.000 into a fast track throughout the employment process at companies 0:08:04.040 --> 0:08:06.720 like Red Bullo Bush or Visa or Kia who are 0:08:06.840 --> 0:08:09.240 using our software. And I think it is it is 0:08:09.240 --> 0:08:12.560 actually at the moment in time where businesses who have 0:08:12.680 --> 0:08:16.960 been incredibly supportive of the war and posing sanctions on 0:08:17.080 --> 0:08:20.440 Russia making donations, and I would say now it's time 0:08:20.440 --> 0:08:23.320 to hire Ukrainians. That's the next time, because four million 0:08:23.400 --> 0:08:26.040 people are going to be looking for a job well, 0:08:26.120 --> 0:08:30.080 that is certainly unequivocal. Jerome turn Nex Smart Recruiters founder 0:08:30.120 --> 0:08:33.240 and CEO, thank you for bringing that story to us. 0:08:34.080 --> 0:08:36.880 Coming up, the I p A window could be closing 0:08:37.080 --> 0:08:39.720 or closed. We'll talk about the options for late stage 0:08:39.720 --> 0:08:43.680 private companies in an ongoing down market with Phil Haslett 0:08:43.880 --> 0:09:02.280 of Equities and Mrs Bloomberg. As stocks continue to whip saw, 0:09:02.360 --> 0:09:04.600 some of the big name startups that were expected to 0:09:04.600 --> 0:09:07.840 go public earlier this year have slowed their rush to market. 0:09:08.120 --> 0:09:10.920 Read It, for instance, had discussed listing shares as soon 0:09:10.960 --> 0:09:14.800 as the first quarter, according to Bloomberg sources, Yet even 0:09:14.840 --> 0:09:17.439 after filing the paperwork for an I p O, they 0:09:17.440 --> 0:09:19.880 haven't taken the next step. Let's talk about all this 0:09:19.920 --> 0:09:22.440 and more with Phil Haslett, founder and Chief Strategy Officer 0:09:22.600 --> 0:09:26.160 at Equity. Then, Phil, I was speaking to a venture 0:09:26.200 --> 0:09:28.560 capitalist this week who said, the I p O window 0:09:28.840 --> 0:09:33.360 is frozen shut. Would you agree? It's frozen shut, it's closed, 0:09:33.360 --> 0:09:36.600 it's double locked, it's it's nothing's happening for a while. 0:09:37.800 --> 0:09:41.480 So what next? So I think we're this in this 0:09:41.559 --> 0:09:45.200 period of uncertainty about inflation and its impact on companies. 0:09:45.360 --> 0:09:47.679 You've got tech stocks that are down to almost pre 0:09:47.760 --> 0:09:50.960 pandemic levels of pricing right, kind of like good yardsticks 0:09:50.960 --> 0:09:55.520 of the market like Zoom Docu signed peloton Um, and 0:09:55.559 --> 0:09:59.040 you've got political risk out there, and until those things 0:09:59.080 --> 0:10:01.280 are kind of have a bit more resolution, I think 0:10:01.280 --> 0:10:03.320 you're going to see a lot of companies thinking about 0:10:03.400 --> 0:10:05.040 raising a new round of funding or something that we're 0:10:05.040 --> 0:10:06.720 starting to see now which is starting to kind of 0:10:06.720 --> 0:10:10.440 control their cash through layoffs, are kind of reprojecting some 0:10:10.520 --> 0:10:14.959 of their growth. So Go Puff, for example, is reportedly 0:10:15.160 --> 0:10:18.920 cutting a lot of jobs, and also Bloomberg is reporting 0:10:18.920 --> 0:10:22.080 they're raising a billion dollars in new funding with no 0:10:22.200 --> 0:10:24.120 I p O in sight. They had originally raised at 0:10:24.120 --> 0:10:28.439 a fifteen billion dollar valuation. Not sure if that valuation 0:10:28.600 --> 0:10:30.520 will hold up. But what do you imagine is going 0:10:30.520 --> 0:10:33.120 on behind the scenes at a company like go Puff 0:10:33.240 --> 0:10:36.800 right now? Some very stressful board meetings, for sure. I 0:10:36.800 --> 0:10:39.839 think you're gonna see some valuations come down. Um. One 0:10:39.880 --> 0:10:41.960 of the scary things is that a lot of companies 0:10:42.040 --> 0:10:44.640 raised a lot of private capital in two thousand one 0:10:44.840 --> 0:10:48.240 at really high valuations and now they're probably effectively underwater 0:10:48.280 --> 0:10:50.920 and are little behind on growth strategies and growth projections, 0:10:51.120 --> 0:10:53.440 and so I think the real big next wave is 0:10:53.440 --> 0:10:55.400 going to be kind of this day of reckoning where 0:10:55.440 --> 0:10:59.080 companies admit it start layoffs, have to raise money, but 0:10:59.120 --> 0:11:02.000 probably it terms not really excited about um. And you're 0:11:02.000 --> 0:11:04.400 gonna have to hear the D word in in Silicon Valley, 0:11:04.400 --> 0:11:06.319 which is the down round UM. And we're gonna start 0:11:06.320 --> 0:11:07.920 to see more of those kind of come out UM. 0:11:07.960 --> 0:11:09.360 And we're just you know, it's really if you want 0:11:09.360 --> 0:11:11.560 to be the first to kind of tear the band 0:11:11.600 --> 0:11:12.880 aid off, or if you kind of want to wait 0:11:12.880 --> 0:11:14.560 and hope that that things are gonna get better. But 0:11:14.960 --> 0:11:17.080 you know, I like to say hope is not a strategy. 0:11:17.360 --> 0:11:20.000 We saw insta cart sort of tear off the band aid, 0:11:20.040 --> 0:11:24.600 lowering their own valuation from billion dollars voluntarily. They're not 0:11:24.679 --> 0:11:27.440 in the process of raising money, at least not right now. 0:11:27.679 --> 0:11:30.840 You're saying mass layoffs, a mass number of down rounds. 0:11:30.840 --> 0:11:34.720 Are we going to see companies go under get acquired? 0:11:35.640 --> 0:11:37.760 I think a combination of all three. I thought what 0:11:37.840 --> 0:11:40.199 Instacart did was a really gutsy move really to kind 0:11:40.200 --> 0:11:42.559 of come out first and say, look, there's a benefit 0:11:42.600 --> 0:11:46.080 to actually repricing ourselves at billion. We can now issue 0:11:46.120 --> 0:11:48.320 stock to our employees and a more fair value. Our 0:11:48.360 --> 0:11:50.720 competitors like Door Dash er down a lot um. I 0:11:50.760 --> 0:11:52.880 think other companies gonna do. So You're probably gonna see 0:11:52.880 --> 0:11:55.040 some consolidation, and I think you're gonna start to see 0:11:55.040 --> 0:11:57.360 a paradigm shift where instead of it being a very 0:11:57.360 --> 0:11:59.880 founder friendly market to raise capital, it's going to shift 0:11:59.880 --> 0:12:02.120 to of vcas and to the growth equity investors. They're 0:12:02.120 --> 0:12:04.520 gonna get better terms, they're going to get better valuations, 0:12:04.679 --> 0:12:06.520 and we're going to start to see that happen. One 0:12:06.520 --> 0:12:08.559 of the interesting things that equities and is because of 0:12:08.640 --> 0:12:11.040 kind of where we sit, we can actually see secondary 0:12:11.040 --> 0:12:13.840 transactions that are happening in between the last funding around, right, 0:12:13.840 --> 0:12:15.920 because we usually don't see prices happen for a year 0:12:16.000 --> 0:12:17.960 or two at a time, and we're definitely seeing kind 0:12:17.960 --> 0:12:20.920 of pricing compression versus just a quarter ago. What does 0:12:20.920 --> 0:12:24.600 it mean for employees in the middle of the Great Resignation, 0:12:24.679 --> 0:12:26.600 when a lot of people have been thinking about, you know, 0:12:26.679 --> 0:12:31.080 do I really want to keep doing what I'm doing? Yeah? Absolutely, Well, 0:12:31.120 --> 0:12:33.160 the first thing is a lot of these employees were 0:12:33.160 --> 0:12:36.040 really excited and anticipating some type of liquidity for their 0:12:36.040 --> 0:12:38.000 shares by way of some type of IPO or maybe 0:12:38.040 --> 0:12:40.800 aspect and maybe if they've started thinking about life events. 0:12:40.920 --> 0:12:43.000 So when you compound the fact that the markets are down, 0:12:43.080 --> 0:12:47.200 you're not getting liquidity. UM goods are costing more. A 0:12:47.200 --> 0:12:49.440 lot of companies are starting to proactively kind of reach 0:12:49.440 --> 0:12:51.720 out to places like ourselves and start to think about 0:12:51.720 --> 0:12:54.200 liquidity for their employees and the private markets, right and 0:12:54.240 --> 0:12:56.559 so fortunately that's kind of a part of the capital 0:12:56.559 --> 0:12:58.679 market structure. That's that's grown a lot in the last 0:12:58.920 --> 0:13:01.400 seven or eight years. So we expect and you know, 0:13:01.480 --> 0:13:05.120 to keep seeing that happen. Now, your rival Forge, I 0:13:05.120 --> 0:13:07.559 believe just it a back is Equities and kind of 0:13:07.600 --> 0:13:12.520 I p O eventually, though maybe not in the near down. Yeah, 0:13:12.760 --> 0:13:15.000 well windows very closed right now. But you know, we 0:13:15.040 --> 0:13:17.600 started equities and to bring private markets to the public 0:13:17.640 --> 0:13:19.679 grade and that's our mission. And we've been fortunately being 0:13:19.720 --> 0:13:22.040 able to grow and as a private company haven't been 0:13:22.040 --> 0:13:23.880 inhibited by you know, how we can deliver that to 0:13:23.920 --> 0:13:27.320 our customers. UM. But you know, as my co founder 0:13:27.320 --> 0:13:29.080 and I, one of our responsibilities is to kind of 0:13:29.080 --> 0:13:31.960 evaluate all options and if there's an opportunity to significantly 0:13:32.000 --> 0:13:34.880 grow the business and and kind of further that mission. Uh, 0:13:34.960 --> 0:13:37.160 you know, we uh, we'll keep our door open through that, 0:13:38.080 --> 0:13:41.640 all right, Phil Haslett, founder and strategy officer at Equities, 0:13:41.679 --> 0:13:45.720 and thank you. Coming up put some new supplies start 0:13:45.840 --> 0:13:50.040 chipping into Apple. Why Apple is looking to diversify its 0:13:50.040 --> 0:13:54.560 supply chain for iPhone parts and to unionize or not 0:13:54.800 --> 0:13:56.840 Amazon workers in the midst of a critical vote in 0:13:56.880 --> 0:14:00.839 New York and Alabama. Will have the latest. Next, this 0:14:01.040 --> 0:14:17.960 is Bloomberg. Apple is exploring news sources for the memory 0:14:18.040 --> 0:14:20.760 chips that go into iPhones after a disruption at a 0:14:20.840 --> 0:14:25.120 key Japanese partner, including its first Chinese producer joining us 0:14:25.120 --> 0:14:27.960 now Bloomberg Mark German, who covers Apple. So Mark, who's 0:14:27.960 --> 0:14:32.440 Apple talking to for new parts? And why? Yeah, Apple 0:14:32.600 --> 0:14:35.400 for one of the first times is looking to a 0:14:35.600 --> 0:14:40.480 China based memory supplier no memory, nan memory, nan flash memory. 0:14:40.760 --> 0:14:43.520 That's actually the storage right that they have in MacBooks 0:14:43.520 --> 0:14:45.880 and iPhones and ips this point. So they're talking to 0:14:45.920 --> 0:14:48.640 this China base company called yang z Memory. And this 0:14:48.680 --> 0:14:52.000 is notable because Apple traditionally builds its devices in China, 0:14:52.240 --> 0:14:55.440 but it doesn't use China based suppliers for components of 0:14:55.480 --> 0:14:58.960 this magnitude right, that's potentially going to change. They are 0:14:59.040 --> 0:15:02.600 testing some of their MARY chips, they're having discussions with them. 0:15:02.640 --> 0:15:05.360 There's no guarantee that these chips will actually be implemented 0:15:05.720 --> 0:15:08.640 into an iPhone or another device this year, but they're 0:15:08.680 --> 0:15:11.400 working toward it. With Apple has always tried to do 0:15:11.760 --> 0:15:15.280 is diversify its component sourcing as much as possible. So 0:15:15.360 --> 0:15:17.800 if you have like we had with one memory supply February, 0:15:17.840 --> 0:15:21.280 an issue where a factory became contaminated, or you have 0:15:21.600 --> 0:15:24.800 a you know, a weather disruption or a COVID disruption, 0:15:25.120 --> 0:15:28.960 right there are backup suppliers because Apple can't afford with 0:15:29.000 --> 0:15:31.920 everything on the line to delay products because a component 0:15:31.960 --> 0:15:34.840 issues or to have less supplied than expected. So that's 0:15:34.840 --> 0:15:38.080 why they try to have backup sources. What's the significance 0:15:38.080 --> 0:15:40.680 of Apple looking at a Chinese supplier in the midst 0:15:40.680 --> 0:15:43.480 of this big push to bring chip production back to 0:15:43.560 --> 0:15:46.960 the United States. Yeah. I mean to some people it 0:15:47.040 --> 0:15:50.280 may not be a great look, right, but business is business, 0:15:50.520 --> 0:15:52.480 and consumers at the end of the day want to 0:15:52.480 --> 0:15:54.600 get their phones. Investors at the end of the day 0:15:54.600 --> 0:15:56.560 want Apple to be able to ship the phones, and 0:15:56.600 --> 0:15:58.840 so if they need to go to a supplier that may, 0:15:59.040 --> 0:16:01.360 you know, not look so hot right now, right, it's 0:16:01.360 --> 0:16:02.960 a bad look, but at least they're gonna be able 0:16:02.960 --> 0:16:04.560 to get the phone shipped. Now, I think the more 0:16:05.200 --> 0:16:09.200 possi possibly the more detrimental thing is that these suppliers 0:16:09.240 --> 0:16:11.440 traditionally have not done as good a job at creating 0:16:11.440 --> 0:16:14.400 those components as some of the other suppliers in Asia 0:16:14.440 --> 0:16:16.280 and elsewhere in the world. Right, So that would be 0:16:16.280 --> 0:16:18.680 my main concern if I were Apple, getting the best product, 0:16:18.720 --> 0:16:21.120 because what you don't want or some iPhones to perform 0:16:21.200 --> 0:16:24.840 better than others in the ISAAC consumers. All right, Mark German, 0:16:24.960 --> 0:16:29.280 thank you for that update. Something will continue to follow meantime. 0:16:29.320 --> 0:16:32.720 A fledgling union taking an early lead in an election 0:16:32.880 --> 0:16:35.800 to unionize at an Amazon facility in New York, while 0:16:35.840 --> 0:16:39.240 in a completely separate election in Alabama and Alabama union 0:16:39.280 --> 0:16:42.040 efforts trailing this want to do over election. I want 0:16:42.040 --> 0:16:44.400 to get an update on this with our Josh Idolston 0:16:44.560 --> 0:16:47.120 in San Francisco. Josh, we actually have some breaking news 0:16:47.160 --> 0:16:49.920 that fledgling union in New York looks like it's on 0:16:50.000 --> 0:16:56.320 track to win with the majority of the votes a 0:16:56.320 --> 0:16:59.800 bit over half counted and more counting tomorrow, the Union 0:17:00.120 --> 0:17:02.960 is in the league, which means there's the potential for 0:17:03.040 --> 0:17:06.639 really a stunning upset here if in fact, when all 0:17:06.640 --> 0:17:10.280 the votes are counted, including any challenge balance that end 0:17:10.320 --> 0:17:13.560 up getting counted, the Union has a majority. The bigger 0:17:13.560 --> 0:17:17.200 picture here is that in recent decades, unions have almost 0:17:17.280 --> 0:17:22.080 never succeeded in big labor board elections at the very 0:17:22.160 --> 0:17:27.360 top non union brand name prominent companies in the United States, 0:17:27.400 --> 0:17:30.400 So that the Union is currently in the lead more 0:17:30.440 --> 0:17:35.239 than halfway through is stunning. And this is happening in 0:17:35.320 --> 0:17:39.199 a campaign where the Union is pretty d i y 0:17:39.320 --> 0:17:43.440 effort led by an employee that Amazon fired a couple 0:17:43.480 --> 0:17:47.760 of years ago. Meantime, we're seeing the trend shifting in 0:17:47.760 --> 0:17:51.600 the other direction in this election in Alabama, which, as 0:17:51.640 --> 0:17:53.800 you know the history of this very well. They're doing 0:17:53.880 --> 0:17:57.280 this election over again because of a lot of controversy, 0:17:57.320 --> 0:18:01.240 but looks like the Union not winning yet so far there, 0:18:01.280 --> 0:18:05.399 what do you make of that? So there, the Union 0:18:05.480 --> 0:18:08.880 is behind by around a hundred votes, and there are 0:18:09.000 --> 0:18:13.440 around four hundred challenge ballots we've heard, which means ballots 0:18:13.440 --> 0:18:16.480 where there's a dispute between the two sides about whether 0:18:16.960 --> 0:18:19.600 that envelope should be opened and that votes should be counted. 0:18:19.640 --> 0:18:23.960 So we don't know what the result will be, but Amazon, 0:18:24.280 --> 0:18:27.240 in its effort to defeat the union, is ahead in Alabama, 0:18:27.320 --> 0:18:30.040 though not by as much as last time. Last time 0:18:30.040 --> 0:18:33.199 there were challenged ballots, but there weren't enough of them 0:18:33.280 --> 0:18:36.639 to make the difference, and so the union would have 0:18:36.720 --> 0:18:40.359 been defeated if not for the labor board concluding that 0:18:40.640 --> 0:18:43.040 there have been too much misconduct and so the election 0:18:43.080 --> 0:18:47.800 should be run again. In each of these cases, Amazon has, 0:18:47.840 --> 0:18:52.600 according to workers, been aggressively campaigning against organizing, and it 0:18:52.720 --> 0:18:55.920 is not easy to win a big labor board election 0:18:56.160 --> 0:19:01.880 against a company that's determined to dissuade workers unionizing. How 0:19:01.920 --> 0:19:08.960 are Amazon workers everywhere else watching this? We've seen already 0:19:09.000 --> 0:19:13.280 a Starbucks. How a win just one place can be 0:19:14.000 --> 0:19:17.080 a lightning rod in a lightning ball in terms of 0:19:17.119 --> 0:19:21.040 inspiring other people to organize. We saw with the first 0:19:24.640 --> 0:19:28.080 all Right Bloomberg, Josh Idolson. There looks like we lost, Josh, 0:19:28.160 --> 0:19:31.800 but certainly, as he was discussing, this could be very significant. Obviously, 0:19:31.800 --> 0:19:35.480 this is something that Amazon employees everywhere are watching closely. 0:19:35.480 --> 0:19:37.720 We'll see if these union votes or how these union 0:19:37.800 --> 0:19:43.480 volks impact potential unionization efforts at other Amazon warehouses across 0:19:43.480 --> 0:19:46.840 the country and around the world. Coming up the one 0:19:47.119 --> 0:19:50.640 trillion dollar tech route from Netflix to Meta, from Zoom 0:19:50.640 --> 0:19:53.440 to Airbnb. For the winners and losers of the post 0:19:53.520 --> 0:20:01.160 pandemic age, we will discuss. This is Bloomberg he teach 0:20:01.640 --> 0:20:08.720 whip which pet A whip, A whip, pip A whip 0:20:09.160 --> 0:20:18.560 people or whip pip pip peach, whip A whip, A 0:20:18.800 --> 0:20:30.040 whip a whip, hip a whip pip or whip which whip, 0:20:30.800 --> 0:20:37.399 whip a whip A which tip a bit pip a 0:20:37.640 --> 0:21:15.880 whip hip hip which pet? Welcome back to Bloomber Technology. 0:21:15.880 --> 0:21:18.040 I'm which hang in San Francisco. Let's get back tech stocks. 0:21:18.280 --> 0:21:21.399 Volatile start of the year shows investors are shifting away 0:21:21.560 --> 0:21:25.679 from pandemic darlings like et SE, Netflix, PayPal, Peloton, all 0:21:25.720 --> 0:21:28.200 among the worst performers in the SMP so far this year. 0:21:28.520 --> 0:21:31.879 What does it mean? What's next? Let's bring in Mark Levin. 0:21:32.080 --> 0:21:36.120 J ANDP Security is a citizens company. CEO, Mark, thank 0:21:36.160 --> 0:21:39.160 you so much for joining us. So what actually looks 0:21:39.200 --> 0:21:45.480 good in tech to you right now? Well, you're looking 0:21:45.480 --> 0:21:47.960 at a screen not much. I mean, the first quarter 0:21:48.040 --> 0:21:51.040 obviously was one of the worst performers in the entire market, 0:21:51.200 --> 0:21:54.360 and we came from such lofty levels that I think 0:21:54.760 --> 0:21:56.200 it's kind of the bigger they are the heart of 0:21:56.240 --> 0:22:00.040 they fall. But I think throwing out tech a of 0:22:00.080 --> 0:22:03.000 the first quarter is a bad idea because you just 0:22:03.119 --> 0:22:05.520 mentioned it. It's part of all of our lives, and 0:22:05.600 --> 0:22:08.119 the more increasing part of our lives, and that's not 0:22:08.240 --> 0:22:10.840 going to change. In fact, it's accelerating. I think it's 0:22:10.880 --> 0:22:13.000 just what our investors want to pay for it. We've 0:22:13.040 --> 0:22:15.720 been focusing on some of those broken names here at 0:22:15.760 --> 0:22:19.800 JMP that have still garnered a lot of wallet. It's 0:22:19.840 --> 0:22:23.560 just the growth rate is decelerated. They've had some digestion issues, 0:22:23.920 --> 0:22:25.680 and we're still interested in some of those names. You 0:22:25.760 --> 0:22:28.560 mentioned something Paypals, the name we like a lot the 0:22:28.600 --> 0:22:32.080 payment space, which is obviously overtaking a lot of our wallet. 0:22:32.760 --> 0:22:35.000 It's a big part of citizens. In fact, the citizens 0:22:35.080 --> 0:22:38.879 pay pay is changing. Cash is trash. It's people are 0:22:38.920 --> 0:22:41.280 paying with their phone, and that's not going to decelerate. 0:22:41.720 --> 0:22:43.840 We mentioned docu sign is a name that had a 0:22:44.080 --> 0:22:47.440 very tough first quarter insider buying, but a part of 0:22:47.480 --> 0:22:49.600 our lives. That's going to continue. We're not going to 0:22:49.640 --> 0:22:51.879 go down to the corner to get things notarized and 0:22:52.400 --> 0:22:55.680 and have stacks of paper. So that's what we're looking 0:22:55.720 --> 0:22:57.840 for at JMP. And I think some of these big 0:22:57.960 --> 0:23:00.480 darlings have had a hard time in the first quarter, 0:23:00.800 --> 0:23:02.840 but we're still there and I think you're going to 0:23:02.880 --> 0:23:04.480 see some of the performance in the back half of 0:23:04.520 --> 0:23:07.240 the year. He's certainly better than the first quarter, and 0:23:07.280 --> 0:23:09.640 that's what we're focused on. So do you think these 0:23:09.720 --> 0:23:12.159 names are going to continue to fall and for how 0:23:12.240 --> 0:23:16.560 much longer before it gets better? Well, I again, I 0:23:16.640 --> 0:23:19.439 think the investors will look at their first quarter reports 0:23:19.520 --> 0:23:23.159 and see the digestion of of the poor reports that 0:23:23.240 --> 0:23:26.040 they had from the fourth quarter. Is it's still getting worse. 0:23:26.440 --> 0:23:29.320 And I think even a slight diminution in that getting 0:23:29.359 --> 0:23:33.160 worse will be enough for investors to take note. Um. Again, 0:23:33.240 --> 0:23:34.680 this is kind of the bigger They are the heart 0:23:34.680 --> 0:23:37.560 of the fall trade. Um, you put up the faint stocks. 0:23:37.880 --> 0:23:40.240