WEBVTT - Twitter-Musk Scrutiny, Apple Design Chief Departs 0:00:02.320 --> 0:00:05.600 From the heart of where Innovation, money and power CALLI 0:00:06.440 --> 0:00:10.960 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:27.720 Emily Jay. I'm Emily Jack in San Francisco, and this 0:00:27.720 --> 0:00:30.400 is Bloomberg Technology coming up in the next hour. US 0:00:30.480 --> 0:00:34.839 officials are discussing national security reviews for Elon Musk's various 0:00:35.000 --> 0:00:40.080 ventures from Twitter to Tesla. This after his Russia Ukraine tweets, 0:00:40.200 --> 0:00:44.560 especially given tesla strong presence in China and AI development, 0:00:45.080 --> 0:00:48.720 because the White House may put more restrictions on China 0:00:48.800 --> 0:00:53.680 technology from AI to quantum computing. And Apple design chief, 0:00:53.680 --> 0:00:56.560 who replaced Johnny I've is leaving the company. According to 0:00:56.560 --> 0:01:00.520 Bloomberg's sources, how she impacted the product lineup and what 0:01:00.560 --> 0:01:05.720 it means for iPhones, iPads, and the incoming mixed reality headset. 0:01:05.880 --> 0:01:09.319 Biden administration officials are debating whether the U s should 0:01:09.319 --> 0:01:12.960 subject some of Elon Musk's ventures to national security review. This. 0:01:13.040 --> 0:01:17.200 According to Bloomberg sources, this would include the Twitter deal, Tesla, 0:01:17.520 --> 0:01:22.039 SpaceX Is, star Link Network, and US officials are uncomfortable 0:01:22.120 --> 0:01:26.240 with what they see as Musk's increasingly Russia friendly stance 0:01:26.720 --> 0:01:29.000 and his plans to buy Twitter with the help of 0:01:29.040 --> 0:01:31.479 foreign investors. For more on this, I want to bring 0:01:31.480 --> 0:01:34.759 in Bloomberg's Dan Flatney and Sarah Frieder. So, so Dan, 0:01:34.920 --> 0:01:36.880 let's start with you. Tell us what we know at 0:01:36.920 --> 0:01:42.520 this point about this potential series of national security reviews. Right. So, 0:01:42.560 --> 0:01:46.839 I think that in many respects, the reviews are centering 0:01:47.000 --> 0:01:52.280 on Twitter and on the consortium of investors that Musk 0:01:52.360 --> 0:01:55.520 has lined up to help in his acquisition of the company, 0:01:55.520 --> 0:01:57.760 if that is what ends up happening at the end 0:01:57.800 --> 0:02:01.960 of the day, and those investors, some of which are 0:02:02.000 --> 0:02:08.520 based overseas. Because of the makeup of that consortium, there 0:02:08.600 --> 0:02:11.320 is a potential for the Committee on Foreign Investment in 0:02:11.320 --> 0:02:14.400 the United States to get involved in looking at the 0:02:14.440 --> 0:02:17.960 interests there. Now, the question is sort of twofold at 0:02:17.960 --> 0:02:21.839 that point, and one is whether the committee actually has jurisdiction, 0:02:21.880 --> 0:02:24.160 which sort of has to do not just with the 0:02:24.160 --> 0:02:27.160 financial stakes that these investors are looking at, but whether 0:02:27.200 --> 0:02:30.360 they'll have any controlling interest in Twitter, whether they will 0:02:30.400 --> 0:02:33.520 be on the board, whether they'll have access to non 0:02:33.560 --> 0:02:35.800 public information, things of that nature, and that will be 0:02:36.080 --> 0:02:38.720 sort of in the deal. So Cyphius does have the 0:02:38.720 --> 0:02:42.760 ability to potentially ask Musk or ask the the those 0:02:42.800 --> 0:02:44.840 involved in the deal for more information on that end, 0:02:45.160 --> 0:02:47.240 and then it sort of becomes a policy decision for 0:02:47.280 --> 0:02:50.840 the Biden administration to make as to whether they would 0:02:50.840 --> 0:02:54.040 want to step in and stop that deal or potentially 0:02:54.400 --> 0:02:58.720 more likely uh have some revisions or some some mitigation 0:02:58.760 --> 0:03:01.480 effects on that at the At this point, it seems 0:03:01.520 --> 0:03:04.320 somewhat unlikely that that's the course that they will take, 0:03:04.360 --> 0:03:08.120 but there is some interest in perhaps trimming musk sales 0:03:08.160 --> 0:03:11.639 a little bit in terms of his rhetoric out there, 0:03:11.680 --> 0:03:15.440 what he's saying publicly, and some potential risks with foreign 0:03:15.440 --> 0:03:20.440 investment in some of his companies. Sarah, we're a week 0:03:20.440 --> 0:03:23.040 away from the day that this deal is supposed to close. 0:03:23.280 --> 0:03:29.240 How big a wrench is this in in that schedule? Well, Emily, 0:03:29.320 --> 0:03:32.200 we have been on this show talking about the fact 0:03:32.240 --> 0:03:34.680 that Elon Musk wanted to buy Twitter, and then he 0:03:34.720 --> 0:03:37.080 didn't want to buy Twitter, and then he wanted to again, 0:03:37.120 --> 0:03:40.000 but there were some some stipulations that Twitter didn't want 0:03:40.240 --> 0:03:42.880 and just back and forth, all the legal filings, all 0:03:42.880 --> 0:03:47.360 the subpoenas. Finally we're reporting that that talks are cordial, 0:03:47.480 --> 0:03:49.960 that they're all on track to get this deal done 0:03:49.960 --> 0:03:54.320 by October. And if the Biden administration is the wrench 0:03:54.400 --> 0:03:58.560 that folved in its way, that would just be uh, 0:03:59.040 --> 0:04:02.400 such a perfect um climax of the story. It's it's 0:04:02.480 --> 0:04:05.520 really it's really been a bumpy ride for the company 0:04:05.600 --> 0:04:08.240 and and for Elon Musk here and for US reporters 0:04:08.280 --> 0:04:11.280 at Bloomberg as well. Um, but listen, you know, it's hard. 0:04:11.400 --> 0:04:13.920 It's hard to stay until they actually say they're going 0:04:13.960 --> 0:04:16.839 to do a review. Um, whether this is going to 0:04:16.960 --> 0:04:21.280 delay anything. As far as the folks involved in the 0:04:21.279 --> 0:04:25.599 deal are operating, they are. They are on track to 0:04:26.120 --> 0:04:29.799 meet the judges deadline, which is five pm Eastern time 0:04:29.839 --> 0:04:34.360 next Friday. If they don't meet that deadline for whatever reason, um, 0:04:34.440 --> 0:04:36.920 you know, it could end up going to court. Um. 0:04:37.040 --> 0:04:40.520 So I think that they're pretty head down on that. However, 0:04:40.800 --> 0:04:44.800 you know, scipious reviews could come still, uh, and I 0:04:44.839 --> 0:04:46.640 think that they would have to respond to that whatever 0:04:46.680 --> 0:04:51.000 it ends up being. Dan and you're reporting. You talk 0:04:51.080 --> 0:04:54.440 also about the Russia. You Crane tweets you on Musk's 0:04:54.480 --> 0:04:58.640 threat to cut off Starlink access to Ukraine. How much 0:04:58.800 --> 0:05:03.679 are officials really can concerned about this potentially Russia friendly 0:05:04.120 --> 0:05:08.159 stance from Elon Musk. I think that there's a couple 0:05:08.200 --> 0:05:11.440 of things that they're looking at there. Certainly there is 0:05:11.520 --> 0:05:15.760 the rhetoric that Musk and others have engaged in on 0:05:16.240 --> 0:05:19.279 this issue. In addition to that, I think that there 0:05:19.440 --> 0:05:24.400 is the Starlink issue, the satellite communications network that Musk 0:05:24.480 --> 0:05:26.839 has helped set up in Ukraine and is looking to 0:05:27.320 --> 0:05:29.800 set up in Iran as well. And I think that 0:05:29.880 --> 0:05:33.240 there's some concern from defense officials and from those in 0:05:33.240 --> 0:05:37.840 the administration that giving one private individual and a private 0:05:37.880 --> 0:05:41.600 company so much control over the kinds of communication and 0:05:41.680 --> 0:05:44.680 the ways of the methods of communication UH in these 0:05:44.760 --> 0:05:50.760 very sensitive areas is potentially a risk, both on the 0:05:50.839 --> 0:05:54.320 sort of redundancy standpoint in case that communication network were 0:05:54.320 --> 0:05:56.159 to be where to go down or to be cut 0:05:56.160 --> 0:05:59.360 off for some reason, and also just in terms of 0:05:59.680 --> 0:06:04.479 that giving one individual so much influence over US foreign 0:06:04.520 --> 0:06:07.400 policy to a certain extent, So I think that there's 0:06:07.880 --> 0:06:12.039 some concern about that. Beyond that, there's also generally some 0:06:12.200 --> 0:06:16.360 concern on the part of the administration on Chinese investments 0:06:16.360 --> 0:06:19.080 and involvement in in US businesses. And this is sort 0:06:19.080 --> 0:06:21.920 of separate from the Ukraine Russia issue, but it certainly 0:06:22.279 --> 0:06:27.720 enters into the cifiest discussions around Tesla and some other companies. 0:06:27.839 --> 0:06:31.280 So I think that there is sort of broadly a 0:06:31.320 --> 0:06:35.720 desire to more carefully scrutinize foreign investment in the US. 0:06:35.880 --> 0:06:39.599 Whether Musk runs a foul of that effort here is 0:06:39.720 --> 0:06:42.200 is sort of a separate issue, but that is definitely 0:06:42.240 --> 0:06:44.599 something that the administration is looking to be more active 0:06:44.680 --> 0:06:50.760 on in general. Meantime, Sarah, there's this reporting that Musk 0:06:50.920 --> 0:06:55.039 is planning to cut seventy of Twitter's workforce. This is 0:06:55.040 --> 0:06:58.440 a seven thousand company at this point. That's a lot 0:06:58.520 --> 0:07:02.920 of people. What's the real action inside Twitter about this news? 0:07:06.760 --> 0:07:10.880 It looks like we lost Sarah for a moment there, Um, Dan, 0:07:10.960 --> 0:07:13.160 while we get Sarah back quickly, Can you tell us 0:07:13.200 --> 0:07:17.520 the response from the White House so far on your reporting? Sure? So. 0:07:18.000 --> 0:07:20.880 Treasury Secretary Janet Yellen was asked about this today. She 0:07:20.920 --> 0:07:24.560 basically said she cannot comment on ciphious actions, which is 0:07:24.560 --> 0:07:27.400 a pretty common response, and that she's broadly supportive of 0:07:27.440 --> 0:07:30.240 what Musk has done on the communications front. The White 0:07:30.280 --> 0:07:32.800 House is saying they have no knowledge of these discussions. 0:07:32.800 --> 0:07:35.520 But I think our reporting is very solid in the 0:07:35.640 --> 0:07:39.119 sense that there are these discussions happening within the White House. 0:07:39.320 --> 0:07:43.440 There is sort of this broader overall question of what 0:07:43.480 --> 0:07:45.720 do you do with a problem like Elon Musk. I mean, 0:07:45.720 --> 0:07:48.120 this is the richest person in the world who is 0:07:48.160 --> 0:07:51.800 exerting an outside influence on foreign policy, and I think 0:07:51.840 --> 0:07:54.920 that there is a desire to rein him in a 0:07:54.960 --> 0:07:57.440 little bit, and there are some some ways to do 0:07:57.480 --> 0:08:01.400 that that are both political and sort of non political. Um, 0:08:01.680 --> 0:08:03.920 whether Syphius gets involved at the end of the day, 0:08:03.960 --> 0:08:05.800 I think is it going to be a policy question? 0:08:05.840 --> 0:08:08.920 And my reporting sort of shows that it would be 0:08:09.520 --> 0:08:12.880 a little bit of an outside chance that that Cipius 0:08:12.920 --> 0:08:15.760 would get involved at this point, though not totally outside 0:08:15.760 --> 0:08:18.360 the realm of possibility given some of the foreign investment 0:08:18.440 --> 0:08:21.000 in the in the deal structure. So it's just something 0:08:21.000 --> 0:08:22.680 we'll have to keep a very close eye on as 0:08:22.680 --> 0:08:28.440 things move forward. Okay, so, Ed, why don't you address 0:08:28.720 --> 0:08:32.280 the news that broke in the show yesterday that Elon 0:08:32.360 --> 0:08:37.040 Musk is considering laying off of Twitter's workforce, which will 0:08:37.080 --> 0:08:40.600 be thousands and thousands of people. What are Twitter employees saying, Yeah, 0:08:40.640 --> 0:08:43.080 my editor and dear friend Sarah had some technical issues 0:08:43.120 --> 0:08:46.120 there no worries. Look Sarah edited the story we put 0:08:46.160 --> 0:08:49.400 out on Friday, which is that it's been wellness Month 0:08:49.840 --> 0:08:53.440 at Twitter, and the company has been sharing messages about 0:08:53.520 --> 0:08:56.679 work life balance, looking after yourself. The messages coming out 0:08:56.679 --> 0:08:59.520 of Twitter a frantic. A lot of staff are very worried. 0:08:59.760 --> 0:09:02.400 The worried that the restricted stock unit award that was 0:09:02.400 --> 0:09:05.040 supposed to happen early next month will either not happen 0:09:05.080 --> 0:09:07.000 at the same date they thought, or it won't happen 0:09:07.040 --> 0:09:11.000 at all. They're looking into legal options, according to sources, 0:09:11.040 --> 0:09:13.320 about what happens if they are laid off, do they 0:09:13.360 --> 0:09:16.599 get the right kind of severance. They're also pretty unimpressed 0:09:16.600 --> 0:09:20.040 with management. We're told, you know this communication that Elon 0:09:20.160 --> 0:09:23.880 Musk was considering laying off percent of the workforce, That's 0:09:23.920 --> 0:09:27.040 not even what's upsetting Twitter staff. I'm told that's what 0:09:27.200 --> 0:09:31.160 what is upsetting Twitter staff is that actually Shawn Edgett, 0:09:31.160 --> 0:09:34.880 the Chief Legal Council, said they had discussed cuts and layoffs, 0:09:35.040 --> 0:09:37.960 but that they ended in April when they had that 0:09:38.040 --> 0:09:40.760 definitive murder agreement. Well that's a very different message to 0:09:40.800 --> 0:09:43.880 what Start management of told staff previously. So it's a 0:09:43.920 --> 0:09:46.920 pretty unhappy praise, and I'm told, along with my colleagues 0:09:47.000 --> 0:09:51.000 Kurt Wagner and Max Addler, that morale across San Francisco, 0:09:51.040 --> 0:09:54.079 New York and London is understandably pretty low right now 0:09:54.120 --> 0:09:59.600 at Twitter understandable indeed, Okay, Ad Ludlow, thank you, along 0:09:59.600 --> 0:10:02.000 with Sarah Fire and Dan Flatteney flatly. Of course, we're 0:10:02.000 --> 0:10:04.400 gonna continue to follow all of your reporting on this 0:10:04.440 --> 0:10:17.240 through the weekend. Anxious investors are selling out of social 0:10:17.240 --> 0:10:21.120 media stocks, with thirty five billion dollars in market value 0:10:21.120 --> 0:10:24.400 wiped out just at the open, this following Snap reporting 0:10:24.400 --> 0:10:27.520 its slowest quarterly sales growth on record. For more honest, 0:10:27.520 --> 0:10:29.840 I want to bring in Craftsman Plus founder and CEO 0:10:30.040 --> 0:10:34.440 Alex Uruku. So what is what Snap reported here signal 0:10:34.679 --> 0:10:37.560 to you, Alex Well, I think there's a different like 0:10:37.640 --> 0:10:40.880 macro environment that we should talk about where advertising in 0:10:40.920 --> 0:10:45.320 general is shifting from brand advertising spend to performance spend, 0:10:45.520 --> 0:10:47.520 and the problem with Snapchat and a few other social 0:10:47.520 --> 0:10:51.200 platforms it's more geared towards brand advertisers with the lack 0:10:51.200 --> 0:10:54.680 of first party data um that Apple has recently changed 0:10:54.720 --> 0:10:57.440 with their A T T framework really relying on first 0:10:57.440 --> 0:10:59.680 party day to drive that value. The issue with Snapchat 0:10:59.720 --> 0:11:02.560 is it doesn't have that first party data, and opposite 0:11:02.600 --> 0:11:05.480 of TikTok, which is a very sticky platform driving a 0:11:05.520 --> 0:11:08.120 lot of engagement, doesn't have that stickiness factor either. That's 0:11:08.120 --> 0:11:10.439 why it took a big head today in the markets. 0:11:12.280 --> 0:11:15.920 How much do you think these are short term issues 0:11:16.600 --> 0:11:19.640 or are they long term issues? I think we're going 0:11:19.679 --> 0:11:21.640 to see more long term issues here in just this 0:11:21.760 --> 0:11:24.320 social space. So what what the trend is happening right 0:11:24.360 --> 0:11:27.840 now is retail media. So going back to first party data, 0:11:28.040 --> 0:11:30.240 there's all these other smaller platforms that are coming up 0:11:30.240 --> 0:11:32.800 in the space right now. I think of Marriott, think 0:11:32.800 --> 0:11:36.000 of Lows Home Depot, They're all building ad businesses. Amazon 0:11:36.000 --> 0:11:38.040 and Walmart's kind of already paved the way for that. 0:11:38.480 --> 0:11:41.640 So because they have this first party data, the advertising 0:11:41.679 --> 0:11:43.960 dollars are no longer just spent on Facebook and Google. 0:11:44.320 --> 0:11:46.720 So you're gonna see kind of like a deteriorating spend 0:11:46.720 --> 0:11:51.559 across all the social platforms leveraging these smaller audiences. So 0:11:51.960 --> 0:11:54.920 what does this mean for What does this mean for 0:11:55.000 --> 0:11:58.079 alphabet What does this mean for Twitter, which obviously has 0:11:58.120 --> 0:12:01.440 another unique storyline going on as well. So Google has 0:12:01.480 --> 0:12:04.160 a lot of first party data on Gmail, YouTube, they 0:12:04.200 --> 0:12:06.520 have a lot there, so they're gonna be fine. They 0:12:06.520 --> 0:12:08.200 have a lot of search intent, so I'm not worried 0:12:08.200 --> 0:12:12.080 about Google. Twitter is more one of the platforms like Twitter, Pinterests, 0:12:12.200 --> 0:12:14.320 and Snapchat are kind of the three that I'm more 0:12:14.360 --> 0:12:18.000 worried about and concerned about their ability to drive performance 0:12:18.040 --> 0:12:21.280 for advertisers. Uh. Meta they still have a lot of 0:12:21.280 --> 0:12:24.199 first party data, their algorithms are really robust. Uh. I 0:12:24.240 --> 0:12:25.920 think they're going to still be able to be a 0:12:25.920 --> 0:12:28.480 player in the space and drive a meaningful value and 0:12:28.520 --> 0:12:32.960 continue to have a prosperous business. Even if Mark Zuckerberg 0:12:33.120 --> 0:12:36.320 isn't as focused on Facebook and Instagram as he is 0:12:36.400 --> 0:12:39.720 on trying to pivot into the metaverse. I mean, Facebook 0:12:39.800 --> 0:12:42.280 is just a machine, so that coming has a lot 0:12:42.320 --> 0:12:44.680 of great talent behind it. A lot of folks have 0:12:44.679 --> 0:12:47.560 built that up. So even if he is focused on metaverse, 0:12:47.600 --> 0:12:49.839 I still think that platform is still where majority of 0:12:49.840 --> 0:12:51.920 advertisers spend their money and that's not going away at 0:12:51.960 --> 0:12:57.120 least anytime soon. Now, and we just happened in New York. 0:12:57.360 --> 0:12:59.880 What are the big themes that big takeaways about advert 0:13:00.080 --> 0:13:03.200 rising more broadly is changing. Yes, so there's there's a 0:13:03.240 --> 0:13:06.240 different framework. So Apple just announced their scan for update, 0:13:06.280 --> 0:13:08.960 which is kind of their framework of how to handle privacy. 0:13:09.040 --> 0:13:10.920 And what's what the big changes are is we need 0:13:10.960 --> 0:13:12.800 more data and so how do you get more data. 0:13:13.520 --> 0:13:15.280 You have that first party data, but you also have 0:13:15.480 --> 0:13:18.360 attribution windows, which is the time you can actually take 0:13:18.400 --> 0:13:21.600 credit for an impression or a click. And so what's 0:13:21.600 --> 0:13:24.600 happening is they're opening up those attribution windows to feed 0:13:24.840 --> 0:13:28.440 more data to these algorithms that are these AD platforms, 0:13:28.480 --> 0:13:30.160 which is ultimately going to boost the whole space. So 0:13:30.200 --> 0:13:32.400 we actually should see from this new release with Apple, 0:13:33.080 --> 0:13:35.880 the scan for Update, that there will be an overall 0:13:35.920 --> 0:13:39.480 boost in general and just AD dollars flowing to these platforms. 0:13:40.920 --> 0:13:45.760 So do you see a hierarchical shift here and where uh, 0:13:45.960 --> 0:13:49.080 you know the biggest AD dollars are going or you 0:13:49.120 --> 0:13:51.839 know the recipients of the big AD dollars, Like, how 0:13:51.840 --> 0:13:55.360 does this marketplace look different, let's say in five years. Yes, 0:13:55.440 --> 0:13:58.400 So right now what's happening is, you know, Facebook still 0:13:58.440 --> 0:14:00.480 a big player in the space, Googles to do well. 0:14:00.600 --> 0:14:02.880 Apples probably do emerge into it in a meaningful way. 0:14:02.920 --> 0:14:05.120 So we should look at for Apple. TikTok's got its 0:14:05.120 --> 0:14:07.880 stickiness and get a continue to drive kind of those 0:14:07.960 --> 0:14:10.640 like high flyer advertisers that are looking for that like 0:14:11.200 --> 0:14:13.560 Mega win, they can find that on TikTok. So that's 0:14:13.679 --> 0:14:16.120 they still have the dream. The ad business hasn't been 0:14:16.120 --> 0:14:18.800 totally proven out, but they have the stickiness factor. Uh, 0:14:18.840 --> 0:14:21.480 it's all these other platforms what we're kind of seeing 0:14:21.520 --> 0:14:23.920 in the space that's interesting as well. That was brought 0:14:23.960 --> 0:14:26.200 up an ad weeca is connected TV and so you're 0:14:26.200 --> 0:14:29.280 gonna see a shift from you know, these digital platforms 0:14:29.440 --> 0:14:31.240 that are just on your you know, your phone and 0:14:31.280 --> 0:14:34.200 the smaller device is shifting over to larger screens connected 0:14:34.240 --> 0:14:37.000 TV with Netflix, Disney getting into this space. And what's 0:14:37.000 --> 0:14:40.440 really happening is with all this extra inventory on the space, 0:14:40.680 --> 0:14:43.600 advertising is about supplying demands. So there's advertiser demand and 0:14:43.720 --> 0:14:46.840 there's the inventory of the publishers supply with all these 0:14:46.840 --> 0:14:49.680 other platforms opening up their businesses for ad dollars. And 0:14:49.680 --> 0:14:52.000 again this is from the macro environment of Hey, our 0:14:52.040 --> 0:14:53.800 business is hurting, we need to make money. What's an 0:14:53.840 --> 0:14:56.240 easy way to make money? Turn on ads. So everyone's 0:14:56.240 --> 0:14:58.760 turning on ads and building it that way. But you 0:14:58.800 --> 0:15:01.480 see these companies, the more inventor you have in this space, 0:15:02.120 --> 0:15:05.200 and demand is ready lowering that we're we've talked about previously, 0:15:05.320 --> 0:15:08.840 So lower demand, more inventory, We're actually gonna see global 0:15:09.080 --> 0:15:15.240 costs of AD impressions probably decrease over the next five years. Interesting, Okay, 0:15:15.400 --> 0:15:18.040 Alex Maruca, CEO and founder of Crafts and Plus, thanks 0:15:18.160 --> 0:15:22.280 so much for bringing your perspective to us this Friday. Alright, 0:15:22.320 --> 0:15:24.920 coming up, another top Apple executive stepping down. How this 0:15:25.000 --> 0:15:29.320 departure opens a major hole in Apple's design team. Next, 0:15:29.600 --> 0:15:44.720 this is Bloomberg. Apple's head of hardware design, Evans Hanky, 0:15:45.000 --> 0:15:48.080 is leaving the iPhone maker three years after taking the role, 0:15:48.160 --> 0:15:51.760 creating a significant vacancy at the top of the company, known, 0:15:51.760 --> 0:15:54.760 of course, for its iconic designs. This according to people 0:15:54.760 --> 0:15:58.440 familiar with the matter and our own Mark German's reporting. So, Mark, 0:15:58.480 --> 0:16:00.560 what do we know about her depart archer and why 0:16:00.600 --> 0:16:04.520 she's leaving now? So this is a pretty significant departure. 0:16:04.560 --> 0:16:08.360 Evans Hankey is the vice president of Industrial Design, reporting 0:16:08.400 --> 0:16:12.400 to the CEO. She essentially replaced Johnny I've, Apple's former 0:16:12.440 --> 0:16:16.680 chief design officer in upon his departure. So she's been 0:16:16.720 --> 0:16:18.880 in charge of the look and feel of the iPhone, 0:16:18.960 --> 0:16:21.960 the Apple Watch, the iPad, the Mac, all of Apple's 0:16:21.960 --> 0:16:24.920 products for the last three years. The departure was announced 0:16:24.960 --> 0:16:28.440 internally within Apple uh this week, and she'll be departing 0:16:28.440 --> 0:16:31.440 in about six months. The notable news here is that 0:16:31.480 --> 0:16:34.480 there's also no replacement for her, so Apple hasn't been 0:16:34.520 --> 0:16:36.520 able to come up with since she announced her departure 0:16:36.560 --> 0:16:41.800 internally who would replace her at this point, Well, filling 0:16:41.880 --> 0:16:44.720 Johnny I's shoes was always going to be a difficult 0:16:44.800 --> 0:16:47.840 job for you know whoever, I was gonna try to 0:16:47.880 --> 0:16:50.720 do that. But do we know why she's leaving after 0:16:50.800 --> 0:16:54.880 just three years? Yeah, at this point, it's unclear to 0:16:54.920 --> 0:16:58.280 say for certain why she is leaving. She's certainly not 0:16:58.400 --> 0:17:01.080 at the point of retirement. She's only been in that 0:17:01.200 --> 0:17:03.080 role for three years, though she has been an Apple 0:17:03.360 --> 0:17:07.280 for about two decades. She was basically the manager of 0:17:07.320 --> 0:17:10.639 the industrial design team under Johnny I've right, so her 0:17:10.640 --> 0:17:13.280 background is in product design, but she ran the team 0:17:13.800 --> 0:17:16.240 as a manager and it was pretty much a natural 0:17:16.240 --> 0:17:19.119 succession for her to take over for Johnny. He was 0:17:19.200 --> 0:17:21.840 her number two in that respect. There are some other 0:17:21.880 --> 0:17:25.040 senior designers that still remain, but to tell you the truth, 0:17:25.200 --> 0:17:28.200 many of them, many of Johnny Ives close collaborators. Most 0:17:28.200 --> 0:17:31.720 senior designers over the past two decades, the ones responsible 0:17:31.760 --> 0:17:33.919 for the designs of the products that we see today. 0:17:33.960 --> 0:17:35.879 A lot of them have either left to start their 0:17:35.920 --> 0:17:38.400 own firms, left to other companies, and some of them 0:17:38.400 --> 0:17:41.119 have joined you know, i've's love from company as well, 0:17:41.280 --> 0:17:43.920 But there still are a few top designers there. There's 0:17:44.160 --> 0:17:49.720 Richard Haworth. He temporarily had this role between seventeen, still 0:17:49.760 --> 0:17:52.480 reporting to I'VE, but he's not someone who wants to 0:17:52.520 --> 0:17:54.840 manage a team, so I think it's unlikely that he 0:17:54.880 --> 0:17:57.680 takes that role again. But certainly this is a major 0:17:57.760 --> 0:18:00.480 development for anyone who's a fan of the can feel 0:18:00.480 --> 0:18:04.680 of Apple's devices. How do you imagine this will impact 0:18:04.840 --> 0:18:08.480 the product line up? Yeah, I mean the way Apple's 0:18:08.480 --> 0:18:10.960 product development process goes is they could be working on 0:18:11.000 --> 0:18:13.119 things in their design labs right now that we won't 0:18:13.160 --> 0:18:15.680 see for two to seven years at this point. Right, 0:18:15.920 --> 0:18:18.119 if you take a look at the current Apple product lineup, 0:18:18.200 --> 0:18:21.560 the Apple Watch Series eight has the same design as 0:18:21.600 --> 0:18:24.320 the Apple Watch from four or five years ago. Right 0:18:24.440 --> 0:18:28.040 the iPad pro same design as four years ago. Uh. 0:18:28.119 --> 0:18:30.800 Some of their other products have legacy designs. The iPhone 0:18:30.840 --> 0:18:34.160 fourteen same design as from to three years ago. Right, 0:18:34.280 --> 0:18:37.720 So we are in for a big change to Apple's designs, 0:18:37.760 --> 0:18:40.360 probably over the next year or two, just because those 0:18:40.359 --> 0:18:42.439 designs have lasted so long. And I think we're going 0:18:42.520 --> 0:18:45.560 to only see the fingerprints of evans Hanky, evans Hanky's 0:18:45.640 --> 0:18:47.640 leaderships over the design team in the next year or two, 0:18:48.000 --> 0:18:50.040 and then maybe four or five years in the future, 0:18:50.080 --> 0:18:54.399 we'll see how the design evolves. All right, Mark German 0:18:54.640 --> 0:18:59.000 as always thank you. Meantime, insta Cart is reportedly holding 0:18:59.080 --> 0:19:01.680 off on plan to go public until at least next year. 0:19:02.000 --> 0:19:04.160 The food delivery giant had been planning to put its 0:19:04.320 --> 0:19:07.000 S one filing out this week, but is said to 0:19:07.280 --> 0:19:11.520 have reconsidered given the turbulent market. Instacart slashed its valuation 0:19:11.520 --> 0:19:14.439 to about thirteen billion dollars and had decided not to 0:19:14.480 --> 0:19:19.440 go public until market conditions improved. Reddit says it now 0:19:19.480 --> 0:19:21.919 has more n f T wallets than the popular trading 0:19:21.960 --> 0:19:26.159 website open ce. Reddit Vault, which lets users create wallets 0:19:26.200 --> 0:19:28.640 to use his avatar, says it's got more than three 0:19:28.920 --> 0:19:32.159 million such wallets open see the largest n f T 0:19:32.280 --> 0:19:34.800 marketplace by all time sales volume has around two point 0:19:34.800 --> 0:19:37.919 three million active wallets. Reddit is preparing for its own 0:19:38.359 --> 0:19:51.080 public debut sometime in the next year. Welcome back to 0:19:51.119 --> 0:19:54.040 Bloom're Technology and Emily Chang in San Francisco. Sources tell 0:19:54.200 --> 0:19:56.720 Bloomberg the US is looking into new rules that would 0:19:56.760 --> 0:20:01.480 limit China's access to powerful emerging computer in technologies, potential 0:20:01.520 --> 0:20:05.600 plans focusing on quantum computing and artificial intelligence software. For 0:20:05.680 --> 0:20:08.680 more on these escalating tensions between the US and China, 0:20:08.720 --> 0:20:12.520 let's bring in Strategy Risk founder and CEO Isaac stone Fish. 0:20:12.600 --> 0:20:15.639 So tensions, Isaac have been ramping up for a while, 0:20:15.800 --> 0:20:19.400 and this yet again, where is this leading? So if 0:20:19.440 --> 0:20:22.600 we step back and look at how negative things have 0:20:22.680 --> 0:20:25.440 been between the United States and China and the very 0:20:25.480 --> 0:20:31.600 real possibility that China invades Taiwan as soon as this year, 0:20:31.840 --> 0:20:36.119 again not likely but possible, possibly the US and China 0:20:36.240 --> 0:20:42.640 are leading to war. Wow. I mean, that's a that's 0:20:42.680 --> 0:20:47.040 a profound statement. Why go that far? We are not 0:20:47.600 --> 0:20:51.199 in a world that's past geopolitics, and I think we 0:20:51.280 --> 0:20:58.080 had this nice global mental break of big power wars 0:20:59.000 --> 0:21:02.000 from the fall of the Soviet Union and from after 0:21:02.040 --> 0:21:04.480 the Korean War, in the Vietnam War, the Proxy War. 0:21:05.240 --> 0:21:08.320 Now we're waking up to the fact that great powers 0:21:08.400 --> 0:21:11.160 do fight wars with each other. They have throughout history, 0:21:11.200 --> 0:21:14.480 and they're very likely to again. And China has been 0:21:14.560 --> 0:21:19.720 very explicit about its willingness to retake Taiwan, even with force. 0:21:19.840 --> 0:21:22.680 The US has been very explicit about its willingness to 0:21:22.760 --> 0:21:26.359 defend Taiwan with force. And so if China calls the 0:21:26.400 --> 0:21:29.520 United States bluff that very much could lead to a 0:21:29.680 --> 0:21:33.640 active hot war between the world's two most powerful countries. 0:21:35.440 --> 0:21:39.359 How hot does this war get? So it depends on 0:21:39.440 --> 0:21:42.359 how lucky the world is. It could go anywhere from 0:21:42.440 --> 0:21:47.280 a limited regional ish war to something that was similar 0:21:47.320 --> 0:21:51.240 to the Korean War to World War Three. And it's 0:21:51.280 --> 0:21:54.040 stunning to meet as we talk to people in the 0:21:54.080 --> 0:21:57.320 investment community that the US government and certainly the Chinese 0:21:57.359 --> 0:22:02.840 government are awake to this possibility, but the investment community 0:22:03.040 --> 0:22:06.159 seems to want to keep pretending that things will go 0:22:06.200 --> 0:22:09.640 back to where they were in the Obama era of 0:22:10.280 --> 0:22:13.840 friendship with a sprinkle of competition between the US and China. 0:22:13.920 --> 0:22:17.960 And those days are over. M. What do you think 0:22:18.000 --> 0:22:22.159 this would mean for the tech industry. It would be transformative, 0:22:22.400 --> 0:22:27.320 catastrophic to many, and very positive for some who plan ahead. 0:22:27.720 --> 0:22:32.879 I think Apple, Tesla, other major companies are recognizing the 0:22:32.920 --> 0:22:36.320 difficulty of sourcing from China and trying to explore other 0:22:36.440 --> 0:22:41.600 supply chain alternatives. I think the absolute cratering of the 0:22:41.840 --> 0:22:45.560 Chinese market would be cratering for a lot of businesses 0:22:45.640 --> 0:22:48.480 bottom lines, and I think, frankly, a lot of companies 0:22:48.520 --> 0:22:52.719 haven't started thinking about this from an ethical perspective, which is, Okay, 0:22:52.800 --> 0:22:55.920 I'm a major US company, I have thousands of staff 0:22:55.960 --> 0:23:00.600 in China. If China invades Taiwan, will be aging view 0:23:00.640 --> 0:23:03.960 my staff as enemy combatants and how do I deal 0:23:04.000 --> 0:23:07.600 with that? Now? There's a lot of action with Afghanistan 0:23:07.760 --> 0:23:10.359 and with Ukraine of tech companies taking care of their 0:23:10.400 --> 0:23:14.600 employees when those countries descended into war and chaos. What 0:23:14.720 --> 0:23:17.520 plans do tech companies have in place to take care 0:23:17.560 --> 0:23:20.480 of their own in China? If China is to invade 0:23:20.520 --> 0:23:25.480 Taiwan well, and if indeed that does happen, how does 0:23:25.520 --> 0:23:29.280 that play out? Especially given the way we've seen the 0:23:29.400 --> 0:23:35.320