1 00:00:02,520 --> 00:00:12,880 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 2 00:00:12,920 --> 00:00:16,720 Speaker 1: from coast to coast with Caroline Hyde in New York 3 00:00:17,000 --> 00:00:18,959 Speaker 1: and Vla Low in sentrances go. 4 00:00:23,280 --> 00:00:24,840 Speaker 2: This is Bloomberg Tech coming up. 5 00:00:24,880 --> 00:00:29,760 Speaker 3: President Trump seeks quote immediate negotiations on acquiring Greenland for 6 00:00:29,880 --> 00:00:31,080 Speaker 3: national security reasons. 7 00:00:31,080 --> 00:00:32,560 Speaker 2: Will recap his speech. 8 00:00:32,800 --> 00:00:36,400 Speaker 4: In Davos, US Netflix shares, they drop on spending to 9 00:00:36,479 --> 00:00:39,639 Speaker 4: buy Warner Brothers, Discovery and Zipline. 10 00:00:39,760 --> 00:00:42,800 Speaker 3: CEO Keller Clifton joins us to discuss the robotics startups 11 00:00:42,880 --> 00:00:46,680 Speaker 3: do seven point six billion dollar valuation and expansion. 12 00:00:46,960 --> 00:00:49,839 Speaker 4: At first, we return to these public markets, then actually 13 00:00:50,159 --> 00:00:53,960 Speaker 4: bounced back somewhat on the walking back from the edge 14 00:00:54,080 --> 00:00:56,920 Speaker 4: of President Trump, the idea that Greenland will not be 15 00:00:57,000 --> 00:00:59,920 Speaker 4: something that is taken by force. European stocks rally from 16 00:01:00,480 --> 00:01:02,240 Speaker 4: We see in fact the NAZA one hundred now up 17 00:01:02,280 --> 00:01:05,280 Speaker 4: one point four percent as the mood music changes. 18 00:01:05,319 --> 00:01:06,120 Speaker 5: But there are real. 19 00:01:06,000 --> 00:01:09,319 Speaker 4: Details in which industries benefit and which are pulling back 20 00:01:09,560 --> 00:01:11,880 Speaker 4: from this significant speech. Over at Davos, we're looking at 21 00:01:11,880 --> 00:01:14,400 Speaker 4: the S and P five hundred now up a percentage point. 22 00:01:14,600 --> 00:01:16,759 Speaker 4: But really, ed, we have to get to the details 23 00:01:16,800 --> 00:01:17,320 Speaker 4: of that speech. 24 00:01:17,360 --> 00:01:20,240 Speaker 3: We just heard, Yeah, and here to recapital is Bloomberg 25 00:01:20,280 --> 00:01:23,640 Speaker 3: Surveillance co host Amri Horden, who is out in Davos. 26 00:01:24,120 --> 00:01:28,520 Speaker 3: The central feature of the President's speech was Greenland, not 27 00:01:28,760 --> 00:01:33,600 Speaker 3: just ruling out the use of force amh in acquiring Greenland, 28 00:01:33,640 --> 00:01:36,240 Speaker 3: but the commitment to continuing on that path. What do 29 00:01:36,280 --> 00:01:36,760 Speaker 3: we need to know? 30 00:01:37,760 --> 00:01:39,560 Speaker 6: Yeah, the President made it very clear he doesn't want 31 00:01:39,560 --> 00:01:41,440 Speaker 6: to use force, he won't use force, and he talked 32 00:01:41,440 --> 00:01:44,520 Speaker 6: about how he is coming here to have intense negotiations 33 00:01:44,560 --> 00:01:48,120 Speaker 6: for the United States to acquire Greenland once again. So 34 00:01:48,280 --> 00:01:50,760 Speaker 6: coming into this, you know, the Europeans really feeling like 35 00:01:50,800 --> 00:01:54,000 Speaker 6: this was an existential threat. This has really taken up 36 00:01:54,040 --> 00:01:57,520 Speaker 6: all the oxygen in every single meeting room you'll attend 37 00:01:57,600 --> 00:02:01,120 Speaker 6: or dinner on the sidelines of Dava, Switzerland. A lot 38 00:02:01,120 --> 00:02:05,680 Speaker 6: of criticism pointed towards Washington because of the President's rhetoric 39 00:02:05,800 --> 00:02:09,400 Speaker 6: regarding Greenland, but he came here with some thinking maybe 40 00:02:09,520 --> 00:02:11,600 Speaker 6: was just to negotiate, and that's exactly what we did. 41 00:02:11,720 --> 00:02:13,000 Speaker 7: And we've seen the President. 42 00:02:12,800 --> 00:02:15,760 Speaker 6: Use this tactic before in the past. In the first term, 43 00:02:15,800 --> 00:02:18,200 Speaker 6: there was so many leaks about maybe the United States 44 00:02:18,200 --> 00:02:19,480 Speaker 6: would leave the NATO alliance. 45 00:02:19,520 --> 00:02:21,040 Speaker 7: At the end of the day, NATO. 46 00:02:20,880 --> 00:02:23,560 Speaker 6: Came to the position the President always wanted it to, 47 00:02:23,600 --> 00:02:26,919 Speaker 6: which is to spend more in collective defense. Another time 48 00:02:27,000 --> 00:02:30,360 Speaker 6: this happened, of course, was more recently last year during 49 00:02:30,400 --> 00:02:31,120 Speaker 6: Liberation Day. 50 00:02:31,200 --> 00:02:31,639 Speaker 7: This is what the. 51 00:02:31,560 --> 00:02:34,640 Speaker 6: Treasury Secretary spoke about earlier in the week here at Davos. 52 00:02:34,680 --> 00:02:37,399 Speaker 6: He said, the hysteria around this is like Liberation Day. 53 00:02:37,800 --> 00:02:40,480 Speaker 6: Everyone needs to take a step back, take a deep breath. 54 00:02:41,240 --> 00:02:42,520 Speaker 7: That was what it feels like. 55 00:02:42,639 --> 00:02:42,880 Speaker 2: Now. 56 00:02:42,919 --> 00:02:47,880 Speaker 6: The President anchored this debate negotiation dialogue, what you may 57 00:02:47,919 --> 00:02:50,640 Speaker 6: want to call it, to the extreme and is now 58 00:02:50,680 --> 00:02:53,000 Speaker 6: here for some sort of potential negotiation. 59 00:02:53,840 --> 00:02:55,520 Speaker 7: Of course, we need to see how this goes. 60 00:02:55,560 --> 00:02:58,480 Speaker 6: The President did say he will be having bilateral meetings 61 00:02:58,639 --> 00:03:02,480 Speaker 6: with European LEO, so we'll see what comes of this. 62 00:03:02,600 --> 00:03:04,959 Speaker 6: But it does seem to be like this has taken 63 00:03:05,000 --> 00:03:07,360 Speaker 6: the tone of the rhetoric down a notch. 64 00:03:07,840 --> 00:03:12,160 Speaker 4: And yet he chastised European leaders, particularly around energy and 65 00:03:12,160 --> 00:03:15,680 Speaker 4: we think here on the Technology show about the nuclear commitment. 66 00:03:15,760 --> 00:03:17,840 Speaker 4: That was something he talked told of nuclear stocks react. 67 00:03:17,919 --> 00:03:19,600 Speaker 4: We also hear a lot about the Golden Zone. What 68 00:03:19,680 --> 00:03:22,079 Speaker 4: took your attention, Imrie, Yeah, the. 69 00:03:22,040 --> 00:03:26,280 Speaker 6: Golden Dome has been linked with this administration to Greenland. 70 00:03:26,360 --> 00:03:28,959 Speaker 6: They also spoke about the fact that Canada wants to 71 00:03:29,040 --> 00:03:30,960 Speaker 6: be a part of this Golden Dome. This would be 72 00:03:31,200 --> 00:03:34,960 Speaker 6: able to shield ballistic or cruise missiles into the United 73 00:03:35,000 --> 00:03:37,960 Speaker 6: States before launch or drawing launch, and be able to 74 00:03:38,000 --> 00:03:41,280 Speaker 6: defend the United States Canada and they think Greenland is 75 00:03:41,320 --> 00:03:43,640 Speaker 6: important for this, and that has been one of the 76 00:03:43,680 --> 00:03:46,160 Speaker 6: issues they have been pushing the President's talking about the fact 77 00:03:46,120 --> 00:03:49,520 Speaker 6: that Greenland is just important in general for national security 78 00:03:49,560 --> 00:03:52,800 Speaker 6: when it comes to Russia and China. On that front, 79 00:03:52,840 --> 00:03:55,360 Speaker 6: the President did say he also will be sitting down 80 00:03:55,400 --> 00:03:59,920 Speaker 6: with President Zelenski. I spoke earlier with his special voice 81 00:04:00,000 --> 00:04:02,800 Speaker 6: Steve Wikoff, who said he was going to Moscow tomorrow 82 00:04:02,840 --> 00:04:06,800 Speaker 6: to meet with President Putin and alongside Jared Kushner, and 83 00:04:06,840 --> 00:04:10,880 Speaker 6: then also he'll be having another meeting with Ukrainians this evening, 84 00:04:11,120 --> 00:04:14,000 Speaker 6: So potentially we also are getting closer to some sort 85 00:04:14,000 --> 00:04:16,520 Speaker 6: of peace agreement when it comes to Ukraine, and that 86 00:04:16,640 --> 00:04:20,040 Speaker 6: is critically important for the Europeans. And I bring this 87 00:04:20,160 --> 00:04:22,760 Speaker 6: up because the Europeans felt like Greenland has just been 88 00:04:23,000 --> 00:04:26,000 Speaker 6: besides an existential threat to them, a distraction for some 89 00:04:26,040 --> 00:04:29,239 Speaker 6: of those really important negotiations taking place regarding the future 90 00:04:29,279 --> 00:04:29,960 Speaker 6: of Ukraine. 91 00:04:30,160 --> 00:04:33,560 Speaker 4: Lu Mexamory Hodden long Day's davors, we so appreciate it. 92 00:04:33,600 --> 00:04:34,000 Speaker 5: Thank you. 93 00:04:34,640 --> 00:04:37,840 Speaker 4: Now, let's return to tech and the earnings release of Netflix. 94 00:04:38,160 --> 00:04:40,760 Speaker 4: You'll see that shares they're sliding. They're down by the 95 00:04:40,760 --> 00:04:42,719 Speaker 4: most in the month. At the moment, the company delivering 96 00:04:42,800 --> 00:04:45,760 Speaker 4: and disappointing profit forecast for the current quarter, and that's 97 00:04:45,800 --> 00:04:48,640 Speaker 4: a spending is mounting. Let's get more of Luemgs Entertainment 98 00:04:48,720 --> 00:04:51,520 Speaker 4: editor Felix Chillette, and look, the seventy six cents a 99 00:04:51,600 --> 00:04:54,960 Speaker 4: share for the fiscal quarter we're currently in that forecast 100 00:04:55,400 --> 00:04:58,400 Speaker 4: is below expectations. But it's Warner Brothers, Discovery and it's 101 00:04:58,440 --> 00:04:59,479 Speaker 4: programming they spend on. 102 00:05:00,720 --> 00:05:03,479 Speaker 8: Yeah, I mean, I think investors have every reason to 103 00:05:03,520 --> 00:05:05,680 Speaker 8: be concerned about spending at this point. I mean, it's 104 00:05:05,720 --> 00:05:09,200 Speaker 8: not just that Netflix is pursuing the biggest acquisition in 105 00:05:09,240 --> 00:05:13,200 Speaker 8: the company's history, but they're also said yesterday that they're 106 00:05:13,240 --> 00:05:15,880 Speaker 8: going to be spending more in twenty twenty six than 107 00:05:15,880 --> 00:05:18,839 Speaker 8: they did in twenty twenty five on programming, whether it's 108 00:05:18,880 --> 00:05:22,880 Speaker 8: TV series or movies. They spent about eighteen billion dollars 109 00:05:22,960 --> 00:05:24,679 Speaker 8: last year. They're going to be up to about twenty 110 00:05:24,720 --> 00:05:28,279 Speaker 8: billion dollars this year. And yeah, they have a lot 111 00:05:28,320 --> 00:05:31,000 Speaker 8: going on, whether it's you know, live sports that they're 112 00:05:31,160 --> 00:05:34,480 Speaker 8: continuing to expand in. They've got this whole podcasting thing 113 00:05:34,560 --> 00:05:36,600 Speaker 8: they want to do. They've been talking for a long 114 00:05:36,640 --> 00:05:39,120 Speaker 8: time about trying to ramp up their video game efforts. 115 00:05:39,720 --> 00:05:41,880 Speaker 8: So yeah, spending is a concern moving forward. 116 00:05:42,839 --> 00:05:43,279 Speaker 2: Felix. 117 00:05:43,320 --> 00:05:45,720 Speaker 3: You'd think that the Warner Brothers Discovery deal would be 118 00:05:45,760 --> 00:05:48,000 Speaker 3: the b or and end all of that earning school. 119 00:05:48,040 --> 00:05:52,080 Speaker 3: But what executives were talking about with these attractive investment opportunities, 120 00:05:52,440 --> 00:05:55,960 Speaker 3: we seem to suggest buying properties, you know, catalog. They've 121 00:05:56,000 --> 00:05:58,719 Speaker 3: looked at Sony for example, for movie rights. Did we 122 00:05:58,800 --> 00:06:00,920 Speaker 3: learn any more about how great sid Netflix is going 123 00:06:01,000 --> 00:06:02,719 Speaker 3: to be in acquiring more ip. 124 00:06:03,920 --> 00:06:06,080 Speaker 8: I mean, what we learned is they see the competition 125 00:06:06,160 --> 00:06:10,400 Speaker 8: as being incredibly fierce out there, you know, talking about YouTube, 126 00:06:10,760 --> 00:06:15,920 Speaker 8: talking about competition from you know, other places like Instagram, TikTok, 127 00:06:16,240 --> 00:06:23,240 Speaker 8: and I think from Netflix's perspective, they can't have enough library, franchises, content. 128 00:06:23,960 --> 00:06:27,680 Speaker 8: They're really become this all service for all different people 129 00:06:27,760 --> 00:06:30,480 Speaker 8: in the family and to do that you know, you 130 00:06:30,640 --> 00:06:32,520 Speaker 8: kind of work on sports, you got to work on 131 00:06:32,560 --> 00:06:36,640 Speaker 8: topical program and you have to have dramas, comedies, boxing, 132 00:06:36,760 --> 00:06:38,919 Speaker 8: So they're really advanced in all fronts. And yeah, I 133 00:06:38,920 --> 00:06:41,320 Speaker 8: think they, you know, are kicking the tires on every 134 00:06:41,360 --> 00:06:43,719 Speaker 8: library as it comes up. I think what they said 135 00:06:44,160 --> 00:06:47,360 Speaker 8: is that, you know, with Warner Brothers Discovery, once they 136 00:06:47,400 --> 00:06:49,240 Speaker 8: looked under the hood a little bit, they really liked 137 00:06:49,279 --> 00:06:51,280 Speaker 8: what they saw and that's when they decided to move 138 00:06:51,279 --> 00:06:52,120 Speaker 8: forward aggressively. 139 00:06:52,960 --> 00:06:56,000 Speaker 4: And it rather serves Netflix to be talking about competition 140 00:06:56,040 --> 00:06:59,200 Speaker 4: in those fields. Particularly they want to get regulatory approval 141 00:06:59,440 --> 00:07:00,560 Speaker 4: for the deal with. 142 00:07:00,520 --> 00:07:01,040 Speaker 5: One of others. 143 00:07:01,040 --> 00:07:03,679 Speaker 4: Discovery just remind us where we are on that deal, Felix, 144 00:07:03,680 --> 00:07:06,680 Speaker 4: because because the twenty first of January was going to 145 00:07:06,680 --> 00:07:07,279 Speaker 4: be a key date. 146 00:07:08,279 --> 00:07:11,680 Speaker 8: Yeah, I mean, so Netflix came back yesterday, they had 147 00:07:12,000 --> 00:07:15,880 Speaker 8: they amended their offer slightly. It's now an all cash offer. 148 00:07:15,920 --> 00:07:20,160 Speaker 8: Before it was cash and stock, and so yeah, they're 149 00:07:20,200 --> 00:07:22,720 Speaker 8: moving forward. They'll put it in front of Warner brother 150 00:07:22,880 --> 00:07:27,840 Speaker 8: Discovery investors sometime in the spring before the annual meeting. 151 00:07:28,120 --> 00:07:31,520 Speaker 8: At the same time, Paramount hasn't completely gone away. You 152 00:07:31,520 --> 00:07:34,240 Speaker 8: have David Ellison still breathing down the neck with this 153 00:07:35,040 --> 00:07:39,320 Speaker 8: tender offer, you know, still trying to keep them in play. 154 00:07:39,480 --> 00:07:42,080 Speaker 8: I think Paramount everyone's waiting to see if they'll raise 155 00:07:42,120 --> 00:07:45,440 Speaker 8: their offer. In the meantime, Paramount seems to be saying, oh, well, 156 00:07:45,520 --> 00:07:48,680 Speaker 8: you know, Netflix is going to have all these regulatory issues. 157 00:07:49,000 --> 00:07:52,680 Speaker 8: To your point, that's why, you know, Netflix has had 158 00:07:52,720 --> 00:07:55,360 Speaker 8: this talking point about, oh, we don't just compete with 159 00:07:55,480 --> 00:07:58,200 Speaker 8: other streamers, we compete with all these tech companies and 160 00:07:58,280 --> 00:08:02,520 Speaker 8: social media, all these other broader competition field. So that's 161 00:08:02,560 --> 00:08:04,920 Speaker 8: been one of other big talking points. And also of 162 00:08:04,960 --> 00:08:08,840 Speaker 8: course that you know they believe suddenly in theatrical releases 163 00:08:08,880 --> 00:08:11,440 Speaker 8: of movies and that they'll plan to continue to put 164 00:08:11,520 --> 00:08:15,400 Speaker 8: Warner Brothers Discovery movies in theaters for the forty five 165 00:08:15,480 --> 00:08:16,800 Speaker 8: day window as they are now. 166 00:08:17,680 --> 00:08:20,560 Speaker 3: Bloomberg's Felix chouette with the Netflix breakdown, thank you very much. 167 00:08:20,600 --> 00:08:21,880 Speaker 2: Let's stick with Netflix earnings. 168 00:08:21,920 --> 00:08:24,840 Speaker 3: Helen and Wang, research analyst at Philip Security, says the 169 00:08:24,880 --> 00:08:28,040 Speaker 3: company is quote in an ideal position and has an 170 00:08:28,040 --> 00:08:31,320 Speaker 3: accumulate call on the stock. She joins us, Now, Helena, 171 00:08:31,440 --> 00:08:33,960 Speaker 3: why then is Netflix in an ideal position? What are 172 00:08:34,000 --> 00:08:36,520 Speaker 3: the data points that you point us to from that 173 00:08:36,720 --> 00:08:38,280 Speaker 3: earnings call and earnings print. 174 00:08:40,200 --> 00:08:41,480 Speaker 9: Hello, thank you for having me. 175 00:08:41,679 --> 00:08:45,040 Speaker 10: I guess to sort off just diving straight into their financials. 176 00:08:45,360 --> 00:08:48,120 Speaker 10: They have very strong financials, so they do have a 177 00:08:48,160 --> 00:08:50,680 Speaker 10: bet on both the top and bottom line, as that 178 00:08:50,800 --> 00:08:52,920 Speaker 10: is not just for the FOS quarter, it is also 179 00:08:52,960 --> 00:08:56,400 Speaker 10: for the entire year. So overall numbers look very solid 180 00:08:56,720 --> 00:08:59,760 Speaker 10: and that is the actual organic volume coming, so people 181 00:08:59,800 --> 00:09:02,400 Speaker 10: are actually engaging in paying for the services. 182 00:09:03,280 --> 00:09:05,600 Speaker 3: Helena like like, oh, and list, you're trying to model 183 00:09:05,600 --> 00:09:07,520 Speaker 3: for what happens next, and you put things in the 184 00:09:07,559 --> 00:09:11,800 Speaker 3: pro column and the con column. Where does this situation 185 00:09:11,960 --> 00:09:14,400 Speaker 3: with Warner Brothers Discovery fit into which column? 186 00:09:16,040 --> 00:09:20,000 Speaker 10: Well, I guess it really depends because for Netflix right now, 187 00:09:20,080 --> 00:09:23,200 Speaker 10: they're clearly in the leader position in the streaming business. 188 00:09:23,440 --> 00:09:26,320 Speaker 10: So even compared to their closest Robbery Disney, they have 189 00:09:26,360 --> 00:09:29,440 Speaker 10: a much bigger membership base and they stop recording the numbers. 190 00:09:29,440 --> 00:09:31,960 Speaker 10: But they did disclose in this earning that their membership 191 00:09:32,000 --> 00:09:35,080 Speaker 10: is three hundred and twenty five million, so that and 192 00:09:35,280 --> 00:09:38,480 Speaker 10: their money tize is business almost twice as better. And 193 00:09:38,720 --> 00:09:41,199 Speaker 10: with less than ten percent of the total TV viewing, 194 00:09:41,240 --> 00:09:44,360 Speaker 10: there's still a huge wrong way for gross So this 195 00:09:44,520 --> 00:09:48,400 Speaker 10: wonder brother Vial, it really comes in. So the question 196 00:09:48,480 --> 00:09:51,200 Speaker 10: for twenty twenty six is no longer whether they're going 197 00:09:51,240 --> 00:09:54,800 Speaker 10: to be able to continue their gross profitably, which they 198 00:09:54,880 --> 00:09:57,560 Speaker 10: have been doing so that's almost one hundred percent. So 199 00:09:57,600 --> 00:10:00,040 Speaker 10: the question really coming in whether they're going to be 200 00:10:00,080 --> 00:10:06,520 Speaker 10: able to integrate such a big company without sacrificing in 201 00:10:06,640 --> 00:10:08,400 Speaker 10: their margins. 202 00:10:08,600 --> 00:10:10,160 Speaker 9: So that is the question that's coming in. 203 00:10:10,559 --> 00:10:12,840 Speaker 4: Yeah, and for this fiscal culture, it looks like margins 204 00:10:12,840 --> 00:10:15,880 Speaker 4: can't under pressure, so do stop buybacks? But they said, 205 00:10:15,880 --> 00:10:20,199 Speaker 4: look in the longer term, they're committed to margin increase. Helena, 206 00:10:20,520 --> 00:10:23,040 Speaker 4: I'm looking at at the stock that's the lower since 207 00:10:23,120 --> 00:10:27,040 Speaker 4: January of last year. How confident are you and the 208 00:10:27,080 --> 00:10:30,040 Speaker 4: investor base that they can not get distracted during the 209 00:10:30,160 --> 00:10:32,520 Speaker 4: m and A process and indeed interweave it well if 210 00:10:32,520 --> 00:10:34,959 Speaker 4: they managed to clinch it well. 211 00:10:35,000 --> 00:10:37,720 Speaker 10: Their operating margin guide seems to be a little bit 212 00:10:37,760 --> 00:10:40,040 Speaker 10: of life for the next quarter. They've guided thirty one 213 00:10:40,080 --> 00:10:43,000 Speaker 10: percent while the consensus was thirty two to thirty three percent. 214 00:10:43,360 --> 00:10:45,800 Speaker 10: So there is a question of whether we will be 215 00:10:45,840 --> 00:10:47,880 Speaker 10: expecting its operating expense. 216 00:10:47,600 --> 00:10:48,360 Speaker 9: To expand further. 217 00:10:49,520 --> 00:10:53,400 Speaker 10: But I guess what my view is they might want 218 00:10:53,440 --> 00:10:55,720 Speaker 10: a guide more conservatively at the start of the year, 219 00:10:55,960 --> 00:10:58,160 Speaker 10: given all the uncertainty of the water brother, do you 220 00:10:58,800 --> 00:11:01,839 Speaker 10: they're leaving more scope to outperform expectation as the year 221 00:11:01,840 --> 00:11:02,400 Speaker 10: of progresses. 222 00:11:02,640 --> 00:11:04,360 Speaker 9: So I do believe there is a little bit of 223 00:11:04,360 --> 00:11:07,040 Speaker 9: a wiggle room in terms of margin for years to come. 224 00:11:07,280 --> 00:11:09,679 Speaker 4: I mean, and let's just just haven't liked the idea 225 00:11:09,720 --> 00:11:12,679 Speaker 4: of them making this purchase. Really, since the minute they 226 00:11:12,679 --> 00:11:14,360 Speaker 4: put their hand in the ring, shares are off by 227 00:11:14,360 --> 00:11:15,360 Speaker 4: about thirty percent. 228 00:11:16,400 --> 00:11:18,360 Speaker 5: Should they be buying this asset? 229 00:11:18,520 --> 00:11:22,520 Speaker 4: How integral is it that they buy this storied Hollywood asset? 230 00:11:23,760 --> 00:11:26,079 Speaker 10: Well, okay, I would like to point out that financially 231 00:11:26,080 --> 00:11:29,360 Speaker 10: they're very strong, so they don't necessarily need a merger 232 00:11:29,400 --> 00:11:32,440 Speaker 10: to survive. So it's not necessarily a lifeline for them. 233 00:11:32,520 --> 00:11:34,600 Speaker 10: So from the Netflix point of view, it's more of 234 00:11:34,640 --> 00:11:37,840 Speaker 10: a power move for them to aiming at total dominance. 235 00:11:38,120 --> 00:11:40,400 Speaker 10: So our power moves sort of needs to come as 236 00:11:40,400 --> 00:11:42,640 Speaker 10: a sacrifice. So the fact that they are making the 237 00:11:42,679 --> 00:11:45,959 Speaker 10: decision to expose themselves with such risk means they are 238 00:11:46,040 --> 00:11:48,800 Speaker 10: confident enough with their girls, with their financials to make 239 00:11:48,880 --> 00:11:49,840 Speaker 10: such bold decisions. 240 00:11:51,000 --> 00:11:54,320 Speaker 3: Helena, for the last few years, several years Caroline and 241 00:11:54,320 --> 00:11:57,600 Speaker 3: I have been told constantly that in this streaming race, 242 00:11:58,040 --> 00:12:03,520 Speaker 3: content is king Netflix not getting more support, particularly in 243 00:12:03,520 --> 00:12:06,760 Speaker 3: the stock for just going out there and being aggressive 244 00:12:06,880 --> 00:12:09,320 Speaker 3: to keep the library growing having more content. 245 00:12:11,400 --> 00:12:13,760 Speaker 10: Well, I guess right now, because they already don't have 246 00:12:13,800 --> 00:12:15,920 Speaker 10: a competitor in terms of the streaming business. 247 00:12:16,200 --> 00:12:18,400 Speaker 9: They already have a very strong content slate. 248 00:12:19,160 --> 00:12:21,440 Speaker 10: The twenty twenty five we got all the Sweet Game, 249 00:12:21,480 --> 00:12:24,880 Speaker 10: Stranger things Wednesday, so all these are very very popular, 250 00:12:25,120 --> 00:12:28,160 Speaker 10: and twenty twenty six lineup is also very strong. So 251 00:12:28,200 --> 00:12:31,600 Speaker 10: they have this incredible ability to have the amazing content 252 00:12:31,640 --> 00:12:34,600 Speaker 10: with more to come, and still have very impressive traditional 253 00:12:34,600 --> 00:12:37,480 Speaker 10: financial metrics. And if you realize their bottom line Girls 254 00:12:37,559 --> 00:12:39,559 Speaker 10: is much higher than the top line Girls, this is 255 00:12:39,600 --> 00:12:43,160 Speaker 10: because their business itself is a very mature efficiency machine, 256 00:12:43,320 --> 00:12:45,320 Speaker 10: because if you think about it, their costs for making 257 00:12:45,320 --> 00:12:48,200 Speaker 10: the content available is somewhat fixed. We get two billion 258 00:12:48,240 --> 00:12:50,760 Speaker 10: people p two million people watching or two hundred million 259 00:12:50,800 --> 00:12:53,800 Speaker 10: people watching it, so the more engagement they get, every 260 00:12:53,920 --> 00:12:56,360 Speaker 10: new dollar that comes in flow almost straight to the 261 00:12:56,360 --> 00:12:58,640 Speaker 10: bottom line. So this is why they already have very 262 00:12:58,679 --> 00:13:02,880 Speaker 10: outstanding profitability, so they can afford to expand more aggressively 263 00:13:03,280 --> 00:13:05,480 Speaker 10: into a bigger total dominance. 264 00:13:06,559 --> 00:13:10,199 Speaker 3: Herne, which piece of this Warner Brothers Discovery proposed transaction 265 00:13:10,320 --> 00:13:14,360 Speaker 3: interests you more the studios or taking HBO Max and 266 00:13:14,400 --> 00:13:17,079 Speaker 3: doing something with it, Well. 267 00:13:16,840 --> 00:13:19,120 Speaker 10: I think it would still be the HBO Max because 268 00:13:19,240 --> 00:13:22,720 Speaker 10: HBO Max right now is still considered the fourth biggest 269 00:13:22,720 --> 00:13:26,880 Speaker 10: streaming company. So with HBO Max together adding up together, 270 00:13:26,920 --> 00:13:29,480 Speaker 10: they will essentially have more than four hundred and fifteen 271 00:13:29,520 --> 00:13:33,280 Speaker 10: billion of subscribers, so that is more than almost more 272 00:13:33,320 --> 00:13:36,000 Speaker 10: than half of the streaming industry. So that would definitely 273 00:13:36,040 --> 00:13:38,800 Speaker 10: give them entire monopoly in that field. 274 00:13:39,360 --> 00:13:42,280 Speaker 4: But Helena, I look at mister Beast who has more 275 00:13:42,280 --> 00:13:45,800 Speaker 4: than four hundred and fifty million subscribers on his YouTube 276 00:13:45,880 --> 00:13:49,240 Speaker 4: platform alone, let alone the dominant force of YouTube. So 277 00:13:49,480 --> 00:13:53,040 Speaker 4: how do you see the market and who their competitors are. 278 00:13:54,120 --> 00:13:56,800 Speaker 10: Well, I guess that is exactly exactly why they wanted 279 00:13:56,840 --> 00:14:00,000 Speaker 10: to expland more to the field because they've already reached 280 00:14:00,360 --> 00:14:03,680 Speaker 10: almost a monopoly leader position in the streaming business, so 281 00:14:03,720 --> 00:14:07,240 Speaker 10: they're looking to expand into something else because the entertainment 282 00:14:07,240 --> 00:14:10,160 Speaker 10: industry is always forever changing, so they're always trying to 283 00:14:10,200 --> 00:14:12,360 Speaker 10: make sure that they have a foot in the ring 284 00:14:12,760 --> 00:14:14,120 Speaker 10: before the environment. 285 00:14:13,760 --> 00:14:17,800 Speaker 4: Changes, Helen and Wang of Philip Security staying up late 286 00:14:17,840 --> 00:14:20,720 Speaker 4: for us in Asia. We so appreciate you having time 287 00:14:20,760 --> 00:14:21,480 Speaker 4: for us on the show. 288 00:14:21,600 --> 00:14:24,600 Speaker 5: Thank you. Now, let's turn attention to Invidia's Jensen Wang. 289 00:14:24,720 --> 00:14:26,800 Speaker 4: He plans to travel to China as he works to 290 00:14:26,840 --> 00:14:29,520 Speaker 4: reopen a crucial market for his company's AI chips. 291 00:14:29,840 --> 00:14:31,320 Speaker 5: From that next, this is Blueberg Tech. 292 00:14:44,800 --> 00:14:46,640 Speaker 4: We're going to be listening now a little bit more 293 00:14:46,680 --> 00:14:49,720 Speaker 4: to what's been being said across in Davos. 294 00:14:49,720 --> 00:14:50,960 Speaker 5: In particular, we've. 295 00:14:50,840 --> 00:14:53,480 Speaker 4: Been hearing from the CEO of Invidia, Jensen Wang, who 296 00:14:53,520 --> 00:14:56,720 Speaker 4: is being interviewed by Larry Fink himself, talking about the 297 00:14:56,800 --> 00:15:01,640 Speaker 4: trillion dollar opportunity that continues and indeed where we might 298 00:15:01,720 --> 00:15:05,000 Speaker 4: indeed see job losses or not. Let's get out to 299 00:15:05,080 --> 00:15:08,360 Speaker 4: Bluemberg's Ian King, who covers all things semiconductors right now, 300 00:15:08,440 --> 00:15:11,680 Speaker 4: and Ian, let's talk a little bit about what's been 301 00:15:11,960 --> 00:15:15,440 Speaker 4: happening in terms of Jensen and where he sees the 302 00:15:15,480 --> 00:15:19,120 Speaker 4: opportunity and scale needed for AI. You've been saying more 303 00:15:19,120 --> 00:15:21,560 Speaker 4: broadly that well, this is a no brainer, and that 304 00:15:21,600 --> 00:15:22,880 Speaker 4: he's been saying this time and time again. 305 00:15:23,960 --> 00:15:28,080 Speaker 11: Yeah, I mean he's traveling around the world preaching basically 306 00:15:28,080 --> 00:15:30,480 Speaker 11: to whichever audience he can get in front of and 307 00:15:30,600 --> 00:15:33,160 Speaker 11: trying to convey the message. I mean kind of last 308 00:15:33,240 --> 00:15:37,280 Speaker 11: night for us time, as message was, look, hey, AI 309 00:15:37,360 --> 00:15:40,200 Speaker 11: is going to change the economy. But listen, Europeans, you 310 00:15:40,200 --> 00:15:43,240 Speaker 11: don't need to worry about regulating AI too much because 311 00:15:43,280 --> 00:15:46,360 Speaker 11: it's actually going to help create certain jobs and make 312 00:15:46,440 --> 00:15:49,800 Speaker 11: certain jobs stronger. And again he's delivering a very nuanced message. 313 00:15:49,880 --> 00:15:52,840 Speaker 11: But everything is designed to ease the passage of AI. 314 00:15:53,120 --> 00:15:56,080 Speaker 3: I think it's really important to point out despite the 315 00:15:56,120 --> 00:15:58,560 Speaker 3: news headlines and Arscle's written, none of this is new, 316 00:16:00,000 --> 00:16:03,080 Speaker 3: picularly the point that the investment in AI infrastructure will 317 00:16:03,080 --> 00:16:08,640 Speaker 3: generate skilled labour jobs plumbing electricians for example. Also, there 318 00:16:08,680 --> 00:16:11,280 Speaker 3: were no questions put to him in an extended on 319 00:16:11,320 --> 00:16:16,320 Speaker 3: stage conversation about China. But Bloomberg's reporting citing sources that 320 00:16:16,400 --> 00:16:19,120 Speaker 3: he will go to China. That is in and of 321 00:16:19,160 --> 00:16:21,000 Speaker 3: itself quite a normal thing for him to do. But 322 00:16:21,040 --> 00:16:22,200 Speaker 3: what do we need to know about that? 323 00:16:22,360 --> 00:16:24,600 Speaker 11: Yeah, I mean always at this time of year, as 324 00:16:24,600 --> 00:16:28,200 Speaker 11: you know, we have, you know, the Chinese New Year, 325 00:16:28,560 --> 00:16:30,160 Speaker 11: and he'd likes to go to Taiwan. He likes to 326 00:16:30,200 --> 00:16:34,520 Speaker 11: go to Beijing, to sort of look after his employees there. 327 00:16:34,800 --> 00:16:38,000 Speaker 11: They have parties and things like that. Previously, when he's 328 00:16:38,120 --> 00:16:41,480 Speaker 11: visiting China he has managed to have meetings with senior officials. 329 00:16:41,480 --> 00:16:43,240 Speaker 11: We don't know whether he's going to do that this time, 330 00:16:43,640 --> 00:16:46,160 Speaker 11: but obviously if he could, then it's really important to 331 00:16:46,160 --> 00:16:49,240 Speaker 11: get Beijing to sign off on H two Just. 332 00:16:49,200 --> 00:16:51,720 Speaker 3: One quick introduction team, which I apologize for. Remember that 333 00:16:51,760 --> 00:16:53,920 Speaker 3: he only told me two weeks ago. We don't speak 334 00:16:53,960 --> 00:16:57,120 Speaker 3: directly to the Chinese government. Our communication is through the companies. 335 00:16:57,320 --> 00:16:58,800 Speaker 3: But sorry, carry on in. 336 00:16:59,040 --> 00:17:02,000 Speaker 11: Yeah, whether he does directly or whether he does it 337 00:17:02,040 --> 00:17:06,080 Speaker 11: through intermediaries. Getting sign off on those H two hundred ships, 338 00:17:06,080 --> 00:17:08,439 Speaker 11: which the US government has said, hey, it's okay to 339 00:17:08,480 --> 00:17:10,960 Speaker 11: an extent to send them to China. Getting China to 340 00:17:11,000 --> 00:17:12,960 Speaker 11: accept them is going to be key, and that'll be 341 00:17:13,000 --> 00:17:15,760 Speaker 11: something that you know, our audience will focus on heavily. 342 00:17:16,200 --> 00:17:17,240 Speaker 5: And of course, all. 343 00:17:17,040 --> 00:17:19,120 Speaker 4: Of this access to China is something he's been talking 344 00:17:19,119 --> 00:17:21,520 Speaker 4: about as a total total addressable market of at least 345 00:17:21,600 --> 00:17:24,840 Speaker 4: fifty billion in this fiscal year alone. I just want 346 00:17:24,840 --> 00:17:27,080 Speaker 4: to go back to what he said at Dabos yesterday 347 00:17:27,080 --> 00:17:30,439 Speaker 4: when being in discussion whether we call it an interview 348 00:17:30,440 --> 00:17:33,240 Speaker 4: with Larry Fink. China wasn't on the agenda, but certainly 349 00:17:33,240 --> 00:17:34,159 Speaker 4: the size of the market was. 350 00:17:34,200 --> 00:17:34,879 Speaker 5: Just take a listener. 351 00:17:36,119 --> 00:17:40,119 Speaker 12: This is the largest infrastructure built out in human history 352 00:17:40,840 --> 00:17:43,320 Speaker 12: that's going to create a lot of jobs. And it's 353 00:17:43,400 --> 00:17:50,320 Speaker 12: wonderful that the jobs are related to tradecraft. And we're 354 00:17:50,359 --> 00:17:54,320 Speaker 12: going to have plumbers and electricians and construction and steel 355 00:17:54,359 --> 00:18:02,239 Speaker 12: workers and network technicians and peopleeople who are installed and 356 00:18:02,280 --> 00:18:06,040 Speaker 12: fit out the equipment and now all of these jobs 357 00:18:07,119 --> 00:18:11,080 Speaker 12: in the United States. We're seeing quite a significant boom 358 00:18:11,160 --> 00:18:15,400 Speaker 12: in this area as salaries have gone up are nearly doubled. Yeah, 359 00:18:15,960 --> 00:18:20,359 Speaker 12: and so we're talking about six figure salaries for people 360 00:18:20,400 --> 00:18:24,280 Speaker 12: who are building chip factories or computer factories. 361 00:18:25,880 --> 00:18:28,960 Speaker 4: We've heard Paneteer CEO Alex Karp talking about the death 362 00:18:29,000 --> 00:18:33,640 Speaker 4: of humanities, but the study of vocations in how long 363 00:18:33,680 --> 00:18:35,440 Speaker 4: do those sorts of jobs last. You're a man who 364 00:18:35,480 --> 00:18:38,240 Speaker 4: knows significantly what the data said to build out looks 365 00:18:38,280 --> 00:18:40,080 Speaker 4: like many would say electricians were they going to be 366 00:18:40,119 --> 00:18:40,639 Speaker 4: in the short time? 367 00:18:40,720 --> 00:18:44,639 Speaker 11: Any Yeah, I mean it really depends that this is 368 00:18:44,680 --> 00:18:47,280 Speaker 11: all about focus. If you're Jensen Wang, you want the 369 00:18:47,320 --> 00:18:51,399 Speaker 11: focus on the economic benefits of AI. You want everybody 370 00:18:51,640 --> 00:18:54,440 Speaker 11: thinking about how this is going to propel the economy 371 00:18:54,480 --> 00:18:57,960 Speaker 11: forward and help everybody. You don't want people thinking about 372 00:18:58,040 --> 00:19:00,639 Speaker 11: questions like the one you just gave me, and also 373 00:19:00,680 --> 00:19:04,680 Speaker 11: about the amount of jobs that maybe go away because 374 00:19:04,720 --> 00:19:07,040 Speaker 11: of AI. So this is a this is like a hey, 375 00:19:07,119 --> 00:19:09,760 Speaker 11: look over here type of directional kind of assertion that 376 00:19:09,800 --> 00:19:12,600 Speaker 11: he wants to make. And for the foreseeable future, we 377 00:19:12,680 --> 00:19:15,960 Speaker 11: are going to continue to see these massive buildouts. 378 00:19:15,760 --> 00:19:18,679 Speaker 5: Thanking across all things in Nvidia. As always for us, 379 00:19:18,720 --> 00:19:25,959 Speaker 5: we appreciate it Meta well. 380 00:19:26,000 --> 00:19:28,560 Speaker 4: It says it's looking to boost its online safety features 381 00:19:28,600 --> 00:19:32,000 Speaker 4: as Europe weighs tougher rules and the possibility of restrictions 382 00:19:32,000 --> 00:19:35,480 Speaker 4: on social media platforms for young adults. Remerg's Frasie Laua 383 00:19:35,600 --> 00:19:38,640 Speaker 4: sat down with Nicola Mendelssohn, who leads Metas Global Business Group, 384 00:19:38,880 --> 00:19:41,399 Speaker 4: to talk about new teen accounts designed to give parents 385 00:19:41,440 --> 00:19:41,959 Speaker 4: more control. 386 00:19:42,000 --> 00:19:42,520 Speaker 5: Take a listen. 387 00:19:45,000 --> 00:19:48,040 Speaker 13: Keeping young people on safe on our platform is incredibly 388 00:19:48,040 --> 00:19:50,760 Speaker 13: important to us. It's an absolute priority, and we've been 389 00:19:50,760 --> 00:19:53,000 Speaker 13: investing in this area for a number of years. 390 00:19:53,320 --> 00:19:53,960 Speaker 2: It's why we. 391 00:19:53,960 --> 00:19:57,240 Speaker 13: Launch teen accounts back in twenty twenty four to keep 392 00:19:57,280 --> 00:20:00,879 Speaker 13: young people safe, to give parents, supervisionary come trolls so 393 00:20:00,960 --> 00:20:03,680 Speaker 13: that they can also work with their children. They're young 394 00:20:03,720 --> 00:20:05,600 Speaker 13: people in terms of keeping them safe. 395 00:20:05,640 --> 00:20:06,400 Speaker 2: So what does that mean. 396 00:20:06,640 --> 00:20:08,879 Speaker 13: It means restricting the amount of time that they spend 397 00:20:08,880 --> 00:20:09,760 Speaker 13: on the platform. 398 00:20:10,040 --> 00:20:12,200 Speaker 5: It means that they can restrict. 399 00:20:11,960 --> 00:20:13,560 Speaker 13: Who comes in and we place them all in that 400 00:20:14,200 --> 00:20:17,040 Speaker 13: category automatically. So this is very important. But of course 401 00:20:17,040 --> 00:20:18,920 Speaker 13: we're going to work with regulators wherever they are. 402 00:20:19,280 --> 00:20:20,480 Speaker 7: Do you think the band will come through? 403 00:20:20,800 --> 00:20:22,960 Speaker 13: I'm not going to speculate. I'm not going to speculate 404 00:20:23,000 --> 00:20:24,920 Speaker 13: with you on that. So first off, we use AI 405 00:20:25,400 --> 00:20:27,960 Speaker 13: when it comes to people on our platform to see 406 00:20:27,960 --> 00:20:29,600 Speaker 13: more of the things that they want to see. So 407 00:20:29,720 --> 00:20:32,760 Speaker 13: we have growth across all of our different platforms, which 408 00:20:32,800 --> 00:20:34,040 Speaker 13: is fantastic to see. 409 00:20:34,200 --> 00:20:35,480 Speaker 2: Then we have the advantage suite. 410 00:20:35,600 --> 00:20:38,720 Speaker 13: It's very simple. I mean some of the practices that 411 00:20:38,800 --> 00:20:41,520 Speaker 13: you used to talk one hundred and fifty different steps, 412 00:20:41,720 --> 00:20:43,720 Speaker 13: now you can do it in one step. We also 413 00:20:43,760 --> 00:20:46,479 Speaker 13: see more and more the increase in our generative AI tools, 414 00:20:46,680 --> 00:20:50,399 Speaker 13: how they can use it for text, for translations, for 415 00:20:50,680 --> 00:20:53,560 Speaker 13: even the creation for video. Now we have over two 416 00:20:53,640 --> 00:20:57,000 Speaker 13: million advertisers doing that. So all these things are combining 417 00:20:57,040 --> 00:21:01,000 Speaker 13: alongside both reels as well to really give growth for 418 00:21:01,080 --> 00:21:02,080 Speaker 13: our advertising. 419 00:21:02,160 --> 00:21:04,120 Speaker 7: Nigga, what do you think is still untapped in your mind? 420 00:21:04,320 --> 00:21:04,439 Speaker 10: Oh? 421 00:21:04,560 --> 00:21:05,280 Speaker 2: So many things. 422 00:21:05,280 --> 00:21:07,280 Speaker 13: I mean, that's how I've got our whole Smager's board 423 00:21:07,280 --> 00:21:11,359 Speaker 13: of things. So definitely messaging, we're seeing a continuous uptake 424 00:21:11,400 --> 00:21:16,160 Speaker 13: in more personalized communication between businesses and people. There's now 425 00:21:16,200 --> 00:21:19,760 Speaker 13: over a billion messages sent every day between people and businesses. 426 00:21:20,160 --> 00:21:22,720 Speaker 13: We see eight percent of people around the world globally 427 00:21:22,760 --> 00:21:25,600 Speaker 13: that are speaking with a business every single week. So 428 00:21:25,720 --> 00:21:28,080 Speaker 13: this is an area both on the marketing side, but 429 00:21:28,200 --> 00:21:31,240 Speaker 13: increasingly more on the utility and the authentication side. 430 00:21:31,400 --> 00:21:32,880 Speaker 2: A good example is Air France. 431 00:21:33,240 --> 00:21:35,840 Speaker 13: So Airfront's when they switched this on within a few days, 432 00:21:36,080 --> 00:21:39,200 Speaker 13: it became their primary source of communicating with their customers, 433 00:21:39,480 --> 00:21:41,879 Speaker 13: and they're doing it to deliver boarding passes, tell you 434 00:21:41,920 --> 00:21:44,919 Speaker 13: about where your baggage is also remarketing as well. So 435 00:21:45,200 --> 00:21:47,719 Speaker 13: that's a very good example of some of the changes 436 00:21:47,720 --> 00:21:48,280 Speaker 13: that we're seeing. 437 00:21:49,760 --> 00:21:52,679 Speaker 3: That was mesi's head of Global Business, Nicola Mendelssohn speaking 438 00:21:52,680 --> 00:21:56,400 Speaker 3: with Bloomberg's Francine Lacroix. Let's get back to Bloomberg Surveillance 439 00:21:56,440 --> 00:21:59,879 Speaker 3: co host Emory Horden who's standing by in Davos Emrie. 440 00:22:00,880 --> 00:22:01,679 Speaker 7: Thanks so much, Ed. 441 00:22:01,720 --> 00:22:04,680 Speaker 6: I'm now joined by the Dutch Prime Minister Shuff, an 442 00:22:04,720 --> 00:22:06,879 Speaker 6: individual who's really at the center of what's going on 443 00:22:06,960 --> 00:22:09,159 Speaker 6: with Greenland as well as someone is really important to 444 00:22:09,280 --> 00:22:11,800 Speaker 6: United States when it comes to national security. Regarding China, 445 00:22:12,000 --> 00:22:13,679 Speaker 6: I want to start with the President's speech. Though you 446 00:22:13,680 --> 00:22:17,760 Speaker 6: were one of those countries listed potentially more tariffs, the 447 00:22:17,800 --> 00:22:21,040 Speaker 6: President said he's here for earnest negotiations. What did you 448 00:22:21,080 --> 00:22:23,080 Speaker 6: make of his speech? Are you feeling more relaxed. 449 00:22:23,520 --> 00:22:25,920 Speaker 14: Well, I think it's good that he use the word negotiations, 450 00:22:25,960 --> 00:22:30,080 Speaker 14: and I think we shared the common interest of security 451 00:22:30,119 --> 00:22:32,399 Speaker 14: of the Arctic, and I think we should work it 452 00:22:32,400 --> 00:22:35,640 Speaker 14: out in NATO and then make sure that's a security 453 00:22:35,720 --> 00:22:37,760 Speaker 14: from the national security of the United States Canada and 454 00:22:37,800 --> 00:22:39,320 Speaker 14: you will benefit from it. 455 00:22:39,440 --> 00:22:41,639 Speaker 6: The President also used the words I don't want to 456 00:22:41,720 --> 00:22:42,240 Speaker 6: use force. 457 00:22:42,480 --> 00:22:43,560 Speaker 7: I won't use force. 458 00:22:44,000 --> 00:22:47,720 Speaker 6: So when you say you're looking forward to the security 459 00:22:47,760 --> 00:22:51,000 Speaker 6: of the Arctic kind of agreement do you think Washington 460 00:22:51,040 --> 00:22:54,640 Speaker 6: can come to with the continental Europe. 461 00:22:54,320 --> 00:22:57,760 Speaker 14: Well, that's difficult to say, but I think American presence 462 00:22:58,160 --> 00:23:00,240 Speaker 14: on we already have a base, and I think we 463 00:23:00,840 --> 00:23:05,120 Speaker 14: could intensify that also with European troops and then we're 464 00:23:05,280 --> 00:23:07,919 Speaker 14: very close together for the security of the Arctic and 465 00:23:08,040 --> 00:23:10,520 Speaker 14: try to prevent influence from Russia and China. 466 00:23:10,400 --> 00:23:11,000 Speaker 11: In the Arctic. 467 00:23:11,160 --> 00:23:14,280 Speaker 6: Do you think this means the trade threat is over 468 00:23:14,560 --> 00:23:16,160 Speaker 6: the higher tariff levels. 469 00:23:15,920 --> 00:23:18,480 Speaker 14: Well, not yet, and I think we have had a 470 00:23:18,600 --> 00:23:22,480 Speaker 14: European Council tomorrow evening, and I think we should step 471 00:23:22,560 --> 00:23:27,600 Speaker 14: up and make make very clear that this is it's unjustified. 472 00:23:28,840 --> 00:23:32,320 Speaker 14: It makes no sense to use straight seriffs to achieve 473 00:23:32,359 --> 00:23:35,320 Speaker 14: security goals, and we have to push back, but in 474 00:23:35,359 --> 00:23:39,240 Speaker 14: the meantime and ready to act from it as European Union. 475 00:23:39,440 --> 00:23:41,880 Speaker 14: But at the same time use the time in between 476 00:23:42,480 --> 00:23:45,800 Speaker 14: for diplomatic efforts because I think we should solve this diplomatically. 477 00:23:46,000 --> 00:23:49,199 Speaker 6: How has Netherlands been involved in that diplomatic outreach to 478 00:23:49,240 --> 00:23:50,240 Speaker 6: the Trump administration. 479 00:23:50,920 --> 00:23:53,280 Speaker 14: Well, we are involved in you and we are involved 480 00:23:53,280 --> 00:23:56,520 Speaker 14: in a lot of ways. And of course the Secretary 481 00:23:56,600 --> 00:23:59,520 Speaker 14: General of the Native is also a Jutchment is. 482 00:23:59,520 --> 00:23:59,879 Speaker 15: On the lea. 483 00:24:00,400 --> 00:24:01,959 Speaker 7: Yeah, yeah, you're aware of that. 484 00:24:02,200 --> 00:24:03,919 Speaker 6: I mean, do you feel like if you text now 485 00:24:04,080 --> 00:24:06,639 Speaker 6: US official that it might become you know, public knowledge? 486 00:24:06,800 --> 00:24:07,000 Speaker 2: Yeah? 487 00:24:07,040 --> 00:24:10,640 Speaker 14: No, I don't think anybody expected that, but anyway it happened. 488 00:24:11,400 --> 00:24:14,439 Speaker 14: But I think we are evolved because we are always 489 00:24:14,440 --> 00:24:17,480 Speaker 14: have a very strong tends Atlantic bond. We have a big, 490 00:24:17,520 --> 00:24:20,440 Speaker 14: thraight relationship with the United States. We consider the United 491 00:24:20,480 --> 00:24:22,439 Speaker 14: States as a big friend of ours. But at the 492 00:24:22,440 --> 00:24:25,639 Speaker 14: same time, I mean, that's not the way we have 493 00:24:25,720 --> 00:24:28,800 Speaker 14: to create a friendship with imputteriffs. 494 00:24:28,800 --> 00:24:29,760 Speaker 2: That's very difficult. 495 00:24:29,840 --> 00:24:32,240 Speaker 7: You are sounding optimistic that there is an off ramp. 496 00:24:32,440 --> 00:24:34,840 Speaker 6: Do you think the European Union should use the anti 497 00:24:34,880 --> 00:24:35,680 Speaker 6: coercion rule? 498 00:24:36,240 --> 00:24:38,160 Speaker 14: Well, we should look into every measure we can take 499 00:24:38,240 --> 00:24:42,240 Speaker 14: if the imput tariffs are being implemented the first of February, 500 00:24:43,280 --> 00:24:45,080 Speaker 14: but at the same time we should try to prevent 501 00:24:45,119 --> 00:24:49,720 Speaker 14: it from happening and find a solution for the Arctic security. 502 00:24:49,920 --> 00:24:50,720 Speaker 7: Right now, you're joining me. 503 00:24:50,760 --> 00:24:53,520 Speaker 6: It's the evening in Davos, but it's very early on 504 00:24:53,560 --> 00:24:56,040 Speaker 6: the West coast the Bloomberg Technology Show, and one company 505 00:24:56,040 --> 00:24:58,560 Speaker 6: they do track is ASM Now it's a huge chip maker, 506 00:24:58,600 --> 00:25:01,480 Speaker 6: it's really a crown jewel of you. You recently met 507 00:25:01,480 --> 00:25:04,560 Speaker 6: with the chief executive officer. What is your sense of 508 00:25:04,600 --> 00:25:06,679 Speaker 6: what is going on in terms of chips to China 509 00:25:06,760 --> 00:25:10,240 Speaker 6: and the national security framework? Because we saw the United 510 00:25:10,240 --> 00:25:13,240 Speaker 6: States has had a lot of almost ups and downs 511 00:25:13,240 --> 00:25:15,280 Speaker 6: in terms of what they will allow go to China 512 00:25:15,320 --> 00:25:16,280 Speaker 6: and what they want. 513 00:25:16,520 --> 00:25:20,200 Speaker 14: I think we should Moorderligne and I think that ASML 514 00:25:20,640 --> 00:25:24,119 Speaker 14: is delifering a lot of machinery for China in the 515 00:25:24,160 --> 00:25:26,920 Speaker 14: lower end chips, and I think that's a good business 516 00:25:26,960 --> 00:25:29,760 Speaker 14: for ASML, and in that way they can really produce 517 00:25:29,800 --> 00:25:32,280 Speaker 14: the top north technology that we need in the West, 518 00:25:33,080 --> 00:25:35,600 Speaker 14: and I think that's also important for the US. So 519 00:25:35,680 --> 00:25:38,760 Speaker 14: I think ASML is a crime rule with the Netlands 520 00:25:38,800 --> 00:25:41,800 Speaker 14: and the all ecosystem around ASML is very important and 521 00:25:41,840 --> 00:25:42,639 Speaker 14: we should cherish. 522 00:25:42,920 --> 00:25:45,359 Speaker 6: What was the assessment you recently met with the CEO, 523 00:25:45,400 --> 00:25:48,320 Speaker 6: I believe this week. What was his assessment on how 524 00:25:48,480 --> 00:25:52,800 Speaker 6: having to really walk this tightrope between Washington and Beijing and. 525 00:25:52,760 --> 00:25:55,159 Speaker 14: Then you have to walk also the titrope with the Netherlands, Right, 526 00:25:55,200 --> 00:25:57,120 Speaker 14: So I'm. 527 00:25:56,960 --> 00:25:59,440 Speaker 7: Guessing that one might be a little bit easier, but maybe. 528 00:25:59,160 --> 00:26:00,000 Speaker 2: Not all partics. 529 00:26:01,200 --> 00:26:03,880 Speaker 14: Yeah, but we have our own arrangement when it comes 530 00:26:03,920 --> 00:26:06,600 Speaker 14: to national security. But I think he knows very well 531 00:26:06,640 --> 00:26:10,600 Speaker 14: that it's not about top notch in technology that's going 532 00:26:10,640 --> 00:26:14,720 Speaker 14: to be shifted to Beijing, not to China, So we 533 00:26:14,800 --> 00:26:17,239 Speaker 14: have to discuss all kinds of issues related that we 534 00:26:17,280 --> 00:26:21,679 Speaker 14: make it possible for ASML to earn money in China 535 00:26:21,680 --> 00:26:24,520 Speaker 14: as well and make sure that they create a top 536 00:26:24,600 --> 00:26:29,480 Speaker 14: notch technology for US, for Europe, for the United States. 537 00:26:29,720 --> 00:26:32,240 Speaker 6: Last year, when you joined Bloomberg, you talked about how 538 00:26:32,440 --> 00:26:35,040 Speaker 6: under the Biden administration there was concerns about national security 539 00:26:35,080 --> 00:26:36,800 Speaker 6: comes to chips to China, and you expected that to 540 00:26:36,840 --> 00:26:39,520 Speaker 6: happen under the Trump administration. But with all this hot 541 00:26:39,600 --> 00:26:42,880 Speaker 6: rhetoric from the Trump administration regarding Greenland, do you think 542 00:26:42,880 --> 00:26:46,080 Speaker 6: that has made it more difficult to align yourself with 543 00:26:46,200 --> 00:26:49,840 Speaker 6: Washington on national security for a key adversary like China. 544 00:26:50,480 --> 00:26:54,280 Speaker 14: Well, I think on China it's maybe more easy because 545 00:26:54,280 --> 00:26:56,840 Speaker 14: we are more aligned and of course we have all 546 00:26:56,880 --> 00:26:59,760 Speaker 14: our trade interests and also the US as a trade interest. 547 00:27:00,000 --> 00:27:01,800 Speaker 2: Well, it's different than. 548 00:27:01,760 --> 00:27:04,960 Speaker 14: From OAD issues. And I really hope that we can 549 00:27:05,000 --> 00:27:07,760 Speaker 14: make arrangement around to Greenland. I really hope that US 550 00:27:08,080 --> 00:27:10,919 Speaker 14: Bill Beck is up in the peace process in Ukraine. 551 00:27:11,160 --> 00:27:14,120 Speaker 14: It was the still going on and at the same 552 00:27:14,119 --> 00:27:17,679 Speaker 14: time we have to take care of national security issues 553 00:27:17,800 --> 00:27:20,160 Speaker 14: related to economy. I mean, it's just what it is 554 00:27:20,320 --> 00:27:21,200 Speaker 14: in the world of today. 555 00:27:21,320 --> 00:27:23,680 Speaker 6: The Prime Minister of Canada, Mark Karney, had a pretty 556 00:27:23,680 --> 00:27:26,919 Speaker 6: spicy speech yesterday, provocative for some individuals. 557 00:27:26,920 --> 00:27:28,440 Speaker 7: The President made a nod to it today. 558 00:27:28,440 --> 00:27:30,840 Speaker 6: He didn't mention Trump by any but many individuals took 559 00:27:30,880 --> 00:27:32,879 Speaker 6: it as he was signaling to what is going on 560 00:27:32,920 --> 00:27:34,320 Speaker 6: in the United States. And he said, if you are 561 00:27:34,359 --> 00:27:36,600 Speaker 6: a country in the middle, if you're not at the table, 562 00:27:36,840 --> 00:27:37,760 Speaker 6: you're going to get eaten. 563 00:27:37,800 --> 00:27:39,680 Speaker 7: And he said the world order we live at now 564 00:27:39,960 --> 00:27:42,240 Speaker 7: is dead. Do you agree with that assessment. 565 00:27:42,440 --> 00:27:44,960 Speaker 14: Well, the world order certainly has changed, and I think 566 00:27:45,000 --> 00:27:46,280 Speaker 14: it's an illusion to think. 567 00:27:46,119 --> 00:27:49,000 Speaker 2: It will come back to the day that I grew up. 568 00:27:50,280 --> 00:27:52,800 Speaker 14: So we have to adapt to the new way in 569 00:27:53,240 --> 00:27:56,359 Speaker 14: which countries I mean in China we got the United 570 00:27:56,400 --> 00:28:00,440 Speaker 14: States have we still got Russias and military power coming entries. 571 00:28:00,640 --> 00:28:02,919 Speaker 14: So we have to a dept as Europe, and I 572 00:28:02,960 --> 00:28:07,160 Speaker 14: think Europe has to get itself stronger economically but also 573 00:28:07,440 --> 00:28:10,720 Speaker 14: on the defense side within NATO, but we have to 574 00:28:10,760 --> 00:28:13,800 Speaker 14: work much more together and make sure that the European 575 00:28:13,880 --> 00:28:16,679 Speaker 14: Union is a real economic union and that Europe is 576 00:28:16,720 --> 00:28:18,720 Speaker 14: really a defense force to reckon with. 577 00:28:18,800 --> 00:28:21,320 Speaker 6: In partments of your life is changing. You're leaving government. 578 00:28:21,560 --> 00:28:23,520 Speaker 6: How is the formation now of the new government. 579 00:28:24,160 --> 00:28:28,399 Speaker 14: Well, it's on track. I expect to be to be 580 00:28:28,440 --> 00:28:32,600 Speaker 14: inaugurated at the end of February, but the negotiations are 581 00:28:32,640 --> 00:28:33,320 Speaker 14: still going on. 582 00:28:34,080 --> 00:28:35,120 Speaker 7: And what are your plans. 583 00:28:35,280 --> 00:28:41,160 Speaker 14: Yeah, well I'm officially already retired. Yeah, yeah, yeah. In 584 00:28:41,400 --> 00:28:45,200 Speaker 14: a few days there will be the ninety six the 585 00:28:45,320 --> 00:28:47,960 Speaker 14: we say it correctly, yeah, of sixty nine. What is 586 00:28:48,000 --> 00:28:52,280 Speaker 14: it six anyway? Yes, you're definitely as much younger sixty nine. Yes, 587 00:28:53,160 --> 00:28:55,560 Speaker 14: But of course I hope to I've worked for a 588 00:28:55,640 --> 00:28:57,880 Speaker 14: very long time as if a servant on all kind 589 00:28:57,880 --> 00:29:00,960 Speaker 14: of key positions in security, so I hope to get 590 00:29:01,000 --> 00:29:07,640 Speaker 14: my experience and my knowledge and to make it failuable. 591 00:29:07,240 --> 00:29:07,800 Speaker 2: For the people. 592 00:29:07,840 --> 00:29:09,960 Speaker 7: And you can come share that with us on Bloomberg TV. 593 00:29:10,200 --> 00:29:11,880 Speaker 2: Oh that's great, Thank you so. 594 00:29:11,880 --> 00:29:12,480 Speaker 7: Much for your time. 595 00:29:12,560 --> 00:29:13,160 Speaker 2: Prime Minister. 596 00:29:13,760 --> 00:29:16,280 Speaker 6: That was the Dutch Prime Minister, Dick schaff There, an 597 00:29:16,320 --> 00:29:19,200 Speaker 6: individual who was really his country's at the epicenter when 598 00:29:19,240 --> 00:29:21,959 Speaker 6: it comes to Greenland. They're one of those countries labeled 599 00:29:22,000 --> 00:29:24,800 Speaker 6: by the Trump administration potentially more tariffs if they don't 600 00:29:24,800 --> 00:29:28,120 Speaker 6: get access to Greenland. The President really tempered that rhetoric though. 601 00:29:28,120 --> 00:29:30,280 Speaker 6: Today had his speech which is giving a little bit 602 00:29:30,320 --> 00:29:33,240 Speaker 6: of life, breathing some life into this story for European 603 00:29:33,320 --> 00:29:34,200 Speaker 6: leaders to. 604 00:29:34,160 --> 00:29:35,040 Speaker 7: Have a sigh of relief. 605 00:29:35,040 --> 00:29:38,520 Speaker 6: But also when it comes to export controls and chips going. 606 00:29:38,360 --> 00:29:42,000 Speaker 4: To Beijing asml key for our audience. Great to have 607 00:29:42,120 --> 00:29:43,880 Speaker 4: you and that interview. Thank you, Amory. 608 00:29:44,640 --> 00:29:46,800 Speaker 5: Let's stick with Dabos coverage salesforce. 609 00:29:46,800 --> 00:29:47,040 Speaker 16: C you. 610 00:29:47,120 --> 00:29:50,400 Speaker 4: Marc Benioff is striking a more cautionately note on AI technology, 611 00:29:50,600 --> 00:29:54,240 Speaker 4: saying reports of teen suicides linked to AI should be 612 00:29:54,280 --> 00:29:56,480 Speaker 4: a wake up call on unregulated AI. 613 00:29:56,760 --> 00:29:58,800 Speaker 5: He spoke with Bluebergsamini Chang. Just take a listen. 614 00:30:01,600 --> 00:30:03,840 Speaker 16: We are dealing with a new kind of very unwieldy 615 00:30:03,920 --> 00:30:07,920 Speaker 16: technology which by left by itself, these large language models, 616 00:30:07,920 --> 00:30:10,479 Speaker 16: they can do all kinds of terrible things. I mean, 617 00:30:10,560 --> 00:30:12,000 Speaker 16: they can do a lot of great things too. You've 618 00:30:12,080 --> 00:30:14,840 Speaker 16: used them, you know. They can summarize things, and you 619 00:30:14,840 --> 00:30:17,440 Speaker 16: can ask them queries and you can get information. But 620 00:30:17,880 --> 00:30:21,560 Speaker 16: unfortunately we saw this year, this horrible example or this 621 00:30:21,640 --> 00:30:27,400 Speaker 16: company character AI specifically started to find that their product 622 00:30:27,440 --> 00:30:31,040 Speaker 16: was turning into a suicide coach for their customers. And 623 00:30:31,880 --> 00:30:33,640 Speaker 16: one of the most terrific things I've ever seen in 624 00:30:33,680 --> 00:30:37,360 Speaker 16: technology is these children you know died and it was 625 00:30:37,400 --> 00:30:40,080 Speaker 16: completely unnecessary. And I think it needs to be a 626 00:30:40,120 --> 00:30:43,440 Speaker 16: wake up call that you know, we're letting all of 627 00:30:43,480 --> 00:30:47,520 Speaker 16: this AI technology out fully unregulated. And by the way, 628 00:30:47,560 --> 00:30:49,960 Speaker 16: you remember that's true what we did with social media 629 00:30:49,960 --> 00:30:52,160 Speaker 16: as well. And you probably remember what I said in 630 00:30:52,160 --> 00:30:55,920 Speaker 16: twenty eighteen here, you know, which was social media was 631 00:30:55,960 --> 00:30:59,760 Speaker 16: becoming the same kind of very dangerous technology. And look, 632 00:30:59,760 --> 00:31:01,880 Speaker 16: a lot lot of governments have made changes around social 633 00:31:01,920 --> 00:31:03,640 Speaker 16: media now, so you go to a lot of countries, 634 00:31:03,840 --> 00:31:06,560 Speaker 16: if you're not seventeen eighteen years old, you're not going 635 00:31:06,560 --> 00:31:09,320 Speaker 16: to use social media. They're our controls or our protections. 636 00:31:09,800 --> 00:31:12,760 Speaker 16: We need to get there with AI now. There doesn't 637 00:31:12,760 --> 00:31:15,000 Speaker 16: need to be any more deaths. You know, we need 638 00:31:15,040 --> 00:31:18,520 Speaker 16: to be like taking this seriously. And AI is great, 639 00:31:18,600 --> 00:31:23,960 Speaker 16: it's incredible, but these models, you know, they're inaccurate, they hallucinate, 640 00:31:24,520 --> 00:31:26,160 Speaker 16: they're kind of hard to control. 641 00:31:26,360 --> 00:31:27,200 Speaker 5: So what should we do? 642 00:31:27,320 --> 00:31:30,800 Speaker 17: I mean, should CEOs be held personally liable? Should I 643 00:31:30,840 --> 00:31:33,480 Speaker 17: was talking to Demis hassibus as CEO of Google Deep Mind, 644 00:31:34,440 --> 00:31:37,120 Speaker 17: and he I asked, look, if we knew every company 645 00:31:37,200 --> 00:31:39,400 Speaker 17: in every country would pause, should. 646 00:31:39,120 --> 00:31:40,040 Speaker 7: We pause AI? 647 00:31:40,960 --> 00:31:44,400 Speaker 17: So society and regulation can catch up and he said, yes, 648 00:31:44,480 --> 00:31:45,560 Speaker 17: he would be in favor of that. 649 00:31:45,600 --> 00:31:46,880 Speaker 5: Would you be in favor, Emily? 650 00:31:46,960 --> 00:31:48,800 Speaker 16: Number One, Tech hates regulation. 651 00:31:48,960 --> 00:31:49,320 Speaker 18: You know that. 652 00:31:49,400 --> 00:31:51,240 Speaker 16: They hate it, right, they get people on, oh, it 653 00:31:51,320 --> 00:31:54,320 Speaker 16: slows down innovation. They hate regulation. They hate it, they 654 00:31:54,320 --> 00:31:56,400 Speaker 16: hate it. They hate it except one regulation they love 655 00:31:56,880 --> 00:31:59,960 Speaker 16: Section two thirty, which basically says they're not held respond 656 00:32:00,400 --> 00:32:03,400 Speaker 16: accountable for these deaths or for anything that their social 657 00:32:03,400 --> 00:32:06,360 Speaker 16: media or their AI does, and that needs to change. 658 00:32:09,040 --> 00:32:12,920 Speaker 3: There was Salesforce CEO Marc Benioff speaking with Bloomberg's Emily Chang. 659 00:32:19,360 --> 00:32:21,680 Speaker 4: A crucial speech from the President of the United States 660 00:32:21,720 --> 00:32:23,840 Speaker 4: and Davos eases some of the tensions in the market. 661 00:32:23,840 --> 00:32:26,320 Speaker 4: We're now up eight ten percent on the Nasdaq one hundred, 662 00:32:26,360 --> 00:32:28,920 Speaker 4: having had on the broader markets in the SMP the 663 00:32:28,960 --> 00:32:32,320 Speaker 4: worst day since April yesterday. Now we bounce back a 664 00:32:32,360 --> 00:32:34,520 Speaker 4: little bit. We've seen a holt and slides on bonds, 665 00:32:34,560 --> 00:32:37,480 Speaker 4: on crypto as well as the President says he would 666 00:32:37,520 --> 00:32:39,840 Speaker 4: not be wanting to use force when it comes to 667 00:32:39,880 --> 00:32:43,280 Speaker 4: his attention on Greenland Nasdaq. If you look under the 668 00:32:43,280 --> 00:32:45,120 Speaker 4: hood and video as your biggest points contributed to the 669 00:32:45,200 --> 00:32:48,400 Speaker 4: upside of the downside, it's Microsoft and this name Netflix 670 00:32:49,000 --> 00:32:52,040 Speaker 4: currently down by some four percentage points. We had been 671 00:32:52,080 --> 00:32:54,400 Speaker 4: lower earlier in trading, and that's. 672 00:32:54,200 --> 00:32:55,680 Speaker 5: After we saw well. 673 00:32:55,520 --> 00:32:59,040 Speaker 4: Profit forecasts disappoint the market after we got its earnings. 674 00:32:59,480 --> 00:33:01,800 Speaker 4: We look what Blue Meg Intelligence has been writing, and 675 00:33:01,840 --> 00:33:06,480 Speaker 4: it's calling the MNA noise also driving investor sentiment. Pleas 676 00:33:06,520 --> 00:33:09,160 Speaker 4: to say, Bluemeg Intelligence is keithan rag and Atham. 677 00:33:09,040 --> 00:33:09,680 Speaker 5: Is here with us. 678 00:33:09,760 --> 00:33:13,240 Speaker 4: So ether the m and A noise is also MNA 679 00:33:13,360 --> 00:33:15,720 Speaker 4: spending and that seems to be where the margin is 680 00:33:15,760 --> 00:33:16,400 Speaker 4: getting a knock. 681 00:33:17,720 --> 00:33:20,040 Speaker 15: Yeah, that's exactly what it is, Caroline. And so we 682 00:33:20,080 --> 00:33:22,760 Speaker 15: saw for the first time that you know, content cost 683 00:33:22,880 --> 00:33:25,720 Speaker 15: is actually going to be higher than expected. Ten percent 684 00:33:25,760 --> 00:33:28,800 Speaker 15: content cost growth is what they're forecasting for twenty twenty six. 685 00:33:29,040 --> 00:33:31,720 Speaker 15: You compt that to about high single digits in prior years. 686 00:33:32,040 --> 00:33:34,560 Speaker 15: And really, I mean this is just a microcosm of 687 00:33:34,640 --> 00:33:37,080 Speaker 15: what we're seeing on a much bigger level with the 688 00:33:37,080 --> 00:33:40,560 Speaker 15: whole eighty three billion dollar acquisition of Warner. They're basically 689 00:33:40,600 --> 00:33:44,440 Speaker 15: paying for content, They're basically paying to keep that engagement 690 00:33:44,520 --> 00:33:46,000 Speaker 15: level up. And I think what was a little bit 691 00:33:46,040 --> 00:33:48,080 Speaker 15: disconcerting from you know, there was obviously a lot of 692 00:33:48,200 --> 00:33:50,920 Speaker 15: nuance in the earnings report. But what we saw was 693 00:33:50,960 --> 00:33:54,360 Speaker 15: you know, engagement growth. Yes, you know it did grow, 694 00:33:54,440 --> 00:33:57,520 Speaker 15: but by a very modest amount, only about two percent 695 00:33:57,560 --> 00:34:00,600 Speaker 15: the whole year. And remember this was a year where 696 00:34:00,600 --> 00:34:03,360 Speaker 15: they really had blockbuster content. I mean whether it was 697 00:34:03,360 --> 00:34:06,920 Speaker 15: Stranger Things or Squid Game or K Pop Demon Hunters. 698 00:34:06,960 --> 00:34:08,279 Speaker 15: I mean, this was the year when we should have 699 00:34:08,320 --> 00:34:10,560 Speaker 15: seen a much bigger uptic in engagement growth, which kind 700 00:34:10,600 --> 00:34:12,719 Speaker 15: of really then leads us to the fact that, you know, 701 00:34:12,800 --> 00:34:15,560 Speaker 15: this is why they need to buy Warner and this 702 00:34:15,640 --> 00:34:18,840 Speaker 15: is why you know you have that acquisition KEITHA. 703 00:34:18,920 --> 00:34:20,600 Speaker 3: In the time that we've come on air here on 704 00:34:20,640 --> 00:34:24,680 Speaker 3: Bloomberg Tech, Bloomberg's reported that the EU is going to 705 00:34:24,840 --> 00:34:28,760 Speaker 3: probe both the Netflix and Paramount bids for Warner Brothers 706 00:34:28,840 --> 00:34:33,160 Speaker 3: Discovery in parallel, which is a somewhat unprecedented approach for 707 00:34:33,440 --> 00:34:35,760 Speaker 3: two companies to go head to head in the context 708 00:34:35,800 --> 00:34:38,600 Speaker 3: of a regulatory probe. What is the regulatory risk on 709 00:34:38,640 --> 00:34:40,680 Speaker 3: this to you? You know, I know that you're trying 710 00:34:40,680 --> 00:34:42,839 Speaker 3: to model for what happens next, and I always ask you, 711 00:34:43,040 --> 00:34:44,720 Speaker 3: he hearing a Nathan, what happens next? 712 00:34:45,880 --> 00:34:49,759 Speaker 15: Yeah, regulatory risk definitely is a big one there ed 713 00:34:50,360 --> 00:34:54,360 Speaker 15: definitely much higher for Netflix compared to a paramount, especially 714 00:34:54,360 --> 00:34:56,200 Speaker 15: as you look at the streaming concentration in some of 715 00:34:56,200 --> 00:34:58,960 Speaker 15: the European markets. You just look at the basic size 716 00:34:59,040 --> 00:35:01,399 Speaker 15: of Netflix subscribe base, it's about three hundred and twenty 717 00:35:01,440 --> 00:35:03,799 Speaker 15: five million. Combine that with about one hundred and twenty 718 00:35:03,840 --> 00:35:07,319 Speaker 15: five million with Warner Brothers. Again, you have four hundred 719 00:35:07,320 --> 00:35:09,520 Speaker 15: and fifty million. And in some of those European markets, 720 00:35:09,600 --> 00:35:11,800 Speaker 15: that risk is really really high. It's high even in 721 00:35:11,840 --> 00:35:14,240 Speaker 15: the United States at about thirty five to forty percent, 722 00:35:14,480 --> 00:35:17,799 Speaker 15: but definitely higher there. So antitrust is definitely going to 723 00:35:17,840 --> 00:35:20,360 Speaker 15: be a huge part. Apart from that, you also have 724 00:35:20,440 --> 00:35:22,439 Speaker 15: the financial risk. I mean, is this going to turn 725 00:35:22,480 --> 00:35:25,600 Speaker 15: into a really ugly bidding war. So that's also something 726 00:35:25,640 --> 00:35:27,279 Speaker 15: that we're kind of on the lookout for. 727 00:35:28,480 --> 00:35:30,799 Speaker 3: Keith ranging up and from Bloomberg Intelligence. Great to have 728 00:35:30,840 --> 00:35:32,600 Speaker 3: you back, Thank you so much. Let's turn to the 729 00:35:32,640 --> 00:35:36,319 Speaker 3: private markets during delivery startup zip Line has closed the 730 00:35:36,360 --> 00:35:39,120 Speaker 3: more than six hundred million dollar funding round, putting the 731 00:35:39,120 --> 00:35:43,320 Speaker 3: company's valuation at seven point six billion dollars. Keller Clifton, 732 00:35:43,400 --> 00:35:46,800 Speaker 3: sit Line CEO co founder joins us. Now it's a 733 00:35:46,840 --> 00:35:49,040 Speaker 3: big jump in valuation, although I don't think you actually 734 00:35:49,040 --> 00:35:51,719 Speaker 3: ever disclosed the twenty twenty four round that put you 735 00:35:51,760 --> 00:35:54,719 Speaker 3: a pretty significant valuation of five billion anyway, But there's 736 00:35:54,760 --> 00:35:57,239 Speaker 3: a lot of interest in this color and why do 737 00:35:57,360 --> 00:35:58,160 Speaker 3: you raise the funds? 738 00:35:58,200 --> 00:35:59,160 Speaker 2: What are you going to use them for? 739 00:36:00,120 --> 00:36:01,839 Speaker 18: Well, I mean, you know, we spent most of last 740 00:36:01,920 --> 00:36:04,960 Speaker 18: year expanding the service aggressively in Dallas. It's been an 741 00:36:04,960 --> 00:36:08,080 Speaker 18: amazing place to you know, for almost a decade ZIP 742 00:36:08,080 --> 00:36:12,319 Speaker 18: when operated mainly outside the US, and last year there 743 00:36:12,360 --> 00:36:16,640 Speaker 18: was basically regulatory progression in the US that allowed this 744 00:36:16,680 --> 00:36:20,640 Speaker 18: technology to start serving US citizens. And what we've seen 745 00:36:20,800 --> 00:36:24,160 Speaker 18: is just like explosive growth and basically infinite demand on 746 00:36:24,440 --> 00:36:26,640 Speaker 18: behalf of customers. I mean, it turns out when you 747 00:36:26,800 --> 00:36:30,439 Speaker 18: design delivery where anybody can pull out their phone, order 748 00:36:30,440 --> 00:36:32,160 Speaker 18: anything they need, have it delivered to their home in 749 00:36:32,200 --> 00:36:34,480 Speaker 18: less than ten minutes, people use that service a lot 750 00:36:34,640 --> 00:36:37,520 Speaker 18: like ten times as much as we've seen usage for 751 00:36:37,560 --> 00:36:41,440 Speaker 18: traditional delivery services. And so yeah, this funding round is 752 00:36:41,440 --> 00:36:44,200 Speaker 18: going to allow us to start announcing new metros. Today, 753 00:36:44,239 --> 00:36:46,800 Speaker 18: we're announcing that we're launching Houston and Phoenix over the 754 00:36:46,840 --> 00:36:50,120 Speaker 18: coming months, and then we'll launch every quarter that comes now, 755 00:36:50,120 --> 00:36:52,080 Speaker 18: will add new metros to the overall network. 756 00:36:51,840 --> 00:36:55,040 Speaker 3: And what's the scale of those launches at first? Right 757 00:36:55,080 --> 00:36:57,200 Speaker 3: that you know, when I shared some of the data 758 00:36:57,239 --> 00:36:58,600 Speaker 3: that you put out there on x there was a 759 00:36:58,640 --> 00:37:01,120 Speaker 3: lot of interest on the rates of it expansion. You know, 760 00:37:01,160 --> 00:37:04,279 Speaker 3: the headline is two million deliveries, but if you think 761 00:37:04,280 --> 00:37:07,120 Speaker 3: about what we're talking about lost mile delivery, that's such 762 00:37:07,160 --> 00:37:09,440 Speaker 3: a tiny fraction of what a delivery van will do. 763 00:37:10,120 --> 00:37:10,960 Speaker 2: How real is this? 764 00:37:11,760 --> 00:37:14,480 Speaker 18: I mean the data that we're seeing again just in 765 00:37:14,480 --> 00:37:16,360 Speaker 18: a single metro in the US, but the data is 766 00:37:16,480 --> 00:37:19,920 Speaker 18: mind blowing. I mean, we have municipalities in Dallas where 767 00:37:20,520 --> 00:37:23,680 Speaker 18: just on Sunday, ten percent of homes placed an order 768 00:37:23,680 --> 00:37:26,880 Speaker 18: with Zipline in the municipality. So it's like, you know, 769 00:37:26,960 --> 00:37:30,640 Speaker 18: we have certain cities where more than fifty percent of 770 00:37:30,680 --> 00:37:34,799 Speaker 18: homes are engaged Zipline customers. So this has definitely gone 771 00:37:34,800 --> 00:37:37,600 Speaker 18: from like science fiction to completely normal and something people 772 00:37:37,640 --> 00:37:40,360 Speaker 18: depend on day in and day out in just a 773 00:37:40,400 --> 00:37:43,000 Speaker 18: few months. Yeah, the service has been growing about fifteen 774 00:37:43,040 --> 00:37:44,959 Speaker 18: percent week over a week over the last year. 775 00:37:45,360 --> 00:37:48,360 Speaker 4: Kind of also unit economics of it, how much you 776 00:37:48,480 --> 00:37:51,160 Speaker 4: having to spend on each of these deliveries. 777 00:37:52,840 --> 00:37:53,880 Speaker 2: The advantagement. 778 00:37:53,920 --> 00:37:56,520 Speaker 18: It shouldn't be that surprising, But actually, I think people 779 00:37:56,640 --> 00:37:59,200 Speaker 18: may not realize when when you're talking about instant normal 780 00:37:59,239 --> 00:38:01,960 Speaker 18: instant delivery, we're using a four thousand pound gas combustion 781 00:38:02,080 --> 00:38:04,719 Speaker 18: vehicle driven by a human to deliver something to your 782 00:38:04,719 --> 00:38:08,120 Speaker 18: house that weighs five pounds. It's actually a super expensive solution. 783 00:38:08,239 --> 00:38:09,960 Speaker 18: This is the reason that there are so many fees. 784 00:38:10,000 --> 00:38:14,839 Speaker 18: And then you know, tip on top autonomous systems are 785 00:38:14,880 --> 00:38:17,640 Speaker 18: going to be less expensive ten times as fast plus 786 00:38:17,640 --> 00:38:20,720 Speaker 18: their zero emission. So these kinds of systems are already 787 00:38:20,719 --> 00:38:24,240 Speaker 18: cost comparable today, they'll be significantly less expensive in the future. 788 00:38:25,000 --> 00:38:27,280 Speaker 3: There is a lot of interest in this particular funding 789 00:38:27,400 --> 00:38:31,279 Speaker 3: round because some of the names involved are the whole 790 00:38:31,360 --> 00:38:35,320 Speaker 3: marks of a pre IPO round some anchor tenant investors. 791 00:38:35,719 --> 00:38:37,719 Speaker 3: Is that a fair assumption to make? 792 00:38:38,400 --> 00:38:39,919 Speaker 2: I mean, zip Line has been really lucky. 793 00:38:39,960 --> 00:38:42,160 Speaker 18: I think that there's a lot you know, we've been 794 00:38:42,160 --> 00:38:44,239 Speaker 18: building this company for twelve years, but I think it's 795 00:38:44,320 --> 00:38:47,720 Speaker 18: finally kind of obvious that robotics is going to remake 796 00:38:47,800 --> 00:38:49,400 Speaker 18: the planet over the last I mean, I think it's 797 00:38:49,440 --> 00:38:53,960 Speaker 18: going to transform a lot of economies and logistics is 798 00:38:53,960 --> 00:38:57,040 Speaker 18: one of the most obvious places where automation and robotics 799 00:38:57,040 --> 00:39:01,040 Speaker 18: can have a huge impact. It can improve service, prove reliability, 800 00:39:01,360 --> 00:39:04,000 Speaker 18: and it's something that people are going to depend on 801 00:39:04,080 --> 00:39:05,319 Speaker 18: day in and day out. By the way, it can 802 00:39:05,360 --> 00:39:07,200 Speaker 18: also create a lot of high paying jobs in the 803 00:39:07,280 --> 00:39:09,839 Speaker 18: United States, both on the manufacturing front as well as 804 00:39:09,880 --> 00:39:10,520 Speaker 18: like maintenance. 805 00:39:10,520 --> 00:39:11,239 Speaker 2: We're building out. 806 00:39:11,440 --> 00:39:14,680 Speaker 18: It's complicated new kinds of infrastructure in each of these cities. 807 00:39:14,800 --> 00:39:16,720 Speaker 18: It's the reason that every city has been so excited 808 00:39:16,719 --> 00:39:19,120 Speaker 18: to have Zipline comme. It's creating high paying jobs. We're 809 00:39:19,160 --> 00:39:22,480 Speaker 18: investing in the in each of those cities that were launching. 810 00:39:22,920 --> 00:39:24,560 Speaker 4: I'm not sure that was an answers to whether you're 811 00:39:24,600 --> 00:39:27,720 Speaker 4: going to be ipoing or not, but I go really 812 00:39:27,840 --> 00:39:30,440 Speaker 4: more to calor the fact that this is a global company. 813 00:39:30,880 --> 00:39:34,719 Speaker 4: We're looking at your drones delivering food, but it's really 814 00:39:34,719 --> 00:39:36,960 Speaker 4: about medicine and health and in particular over in Africa. 815 00:39:37,000 --> 00:39:38,759 Speaker 4: Can you talk to us about how much of the 816 00:39:38,760 --> 00:39:39,879 Speaker 4: scale of the business is there. 817 00:39:41,080 --> 00:39:41,800 Speaker 5: Well, yeah, Zipline. 818 00:39:41,840 --> 00:39:43,560 Speaker 18: You know, when we started the company, what we do 819 00:39:43,760 --> 00:39:46,120 Speaker 18: what we do today was illegal in the United States, 820 00:39:46,120 --> 00:39:48,880 Speaker 18: so not an ideal pitch for investors. But this was 821 00:39:48,920 --> 00:39:51,600 Speaker 18: the reason that we initially partnered with the government of Rwanda. 822 00:39:52,200 --> 00:39:55,040 Speaker 18: You know, today's Zipline serves five thousand hospitals and health 823 00:39:55,080 --> 00:39:58,640 Speaker 18: facilities across the world outside the US, or a huge, 824 00:39:58,960 --> 00:40:01,759 Speaker 18: huge healthcare logistic network. We've now done one hundred and 825 00:40:01,800 --> 00:40:05,040 Speaker 18: thirty five million commercial autonomous miles with zero safety incidents, 826 00:40:05,239 --> 00:40:07,640 Speaker 18: and the system is saving about seventeen thousand lives a year, 827 00:40:07,680 --> 00:40:11,440 Speaker 18: predominantly moms and kids. One cool thing, just this week 828 00:40:11,560 --> 00:40:15,120 Speaker 18: we announced a new national scale partnership with the government 829 00:40:15,160 --> 00:40:18,200 Speaker 18: of Rwanda. We're going to be dramatically expanding the number 830 00:40:18,239 --> 00:40:21,560 Speaker 18: of use cases, building a new distribution center, and for 831 00:40:21,600 --> 00:40:25,000 Speaker 18: the first time ever, ZIP is bringing its next generation technology, 832 00:40:25,000 --> 00:40:27,600 Speaker 18: which we call Platform two, to the continent of Africa. 833 00:40:28,239 --> 00:40:30,560 Speaker 3: CAWT of those regulatory changes you were talking about were 834 00:40:30,640 --> 00:40:33,200 Speaker 3: the President's EO in June and then later in the 835 00:40:33,239 --> 00:40:37,480 Speaker 3: summer the line of sight rules. Right, this is all 836 00:40:37,680 --> 00:40:43,000 Speaker 3: in the context of This is all in the context 837 00:40:43,120 --> 00:40:47,080 Speaker 3: of the President's focus on this as a national security priority. 838 00:40:47,200 --> 00:40:49,560 Speaker 3: I hope this question doesn't shock you, but how is 839 00:40:49,640 --> 00:40:53,440 Speaker 3: Zipline thinking about literally weaponizing the technology its use in 840 00:40:53,480 --> 00:40:56,240 Speaker 3: defense use cases? Conversations with the President? 841 00:40:56,680 --> 00:40:58,799 Speaker 18: Well, the great news is actually that you know, the 842 00:40:58,800 --> 00:41:01,279 Speaker 18: government is trying to accomph a lot of things. They're 843 00:41:01,360 --> 00:41:04,480 Speaker 18: really focused on AI and exports and commercial diplomacy. 844 00:41:04,520 --> 00:41:05,080 Speaker 5: This is the reason. 845 00:41:05,400 --> 00:41:08,160 Speaker 18: Just five weeks ago, Zipline announced a five hundred and 846 00:41:08,160 --> 00:41:11,279 Speaker 18: fifty million dollars total partnership with the State Department as 847 00:41:11,280 --> 00:41:14,520 Speaker 18: well as all of our African country partners to basically 848 00:41:14,640 --> 00:41:16,799 Speaker 18: make sure that the developing world is built on top 849 00:41:16,800 --> 00:41:20,360 Speaker 18: of USAI and robotics infrastructure. That's really good because it 850 00:41:20,400 --> 00:41:23,319 Speaker 18: can make sure that these countries enables these countries to 851 00:41:23,360 --> 00:41:26,040 Speaker 18: save money and save lives. But it is also a 852 00:41:26,120 --> 00:41:28,480 Speaker 18: key way of making sure that the US can maintain 853 00:41:28,520 --> 00:41:31,759 Speaker 18: its manufacturing and technology leadership for the decade to come. 854 00:41:31,800 --> 00:41:34,440 Speaker 18: So Zipline is already working really closely on those initiatives. 855 00:41:34,680 --> 00:41:37,080 Speaker 18: This announcement with Rwanda would not have happened without that 856 00:41:37,120 --> 00:41:38,880 Speaker 18: partnership from the US State Department. 857 00:41:39,200 --> 00:41:42,000 Speaker 4: It's a big funding round, is a big valuation Siplin 858 00:41:42,080 --> 00:41:44,080 Speaker 4: C Kelly Clifton, thanks for joining us.