Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Leaving having made his speech following signing of the bill
Speaker 2: worth some ninety five billion dollars in aid to Ukraine,
Speaker 2: of course, to Israel as well as the Indo Pacific.
Speaker 2: Within that, of course is also the ban or diverst
Speaker 2: of TikTok. Now Biden is saying that the US is
Speaker 2: actually going to start sending military aid to.
Speaker 3: Ukraine within hours.
Speaker 2: He also goes on to say than regarding Israel, then
Speaker 2: it must make sure that the US has provided aid
Speaker 2: reaches Gaza. Let's get more of this with Klie lines
Speaker 2: for more and first the aid.
Speaker 3: Klie, what did you make of this speech from Biden.
Speaker 4: Well, he clearly Caroline was trying to convey that this
Speaker 4: aid package was just as much about US national security
Speaker 4: interests as it was about the interests of our allies.
Speaker 4: He said that repeatedly, specifically on the subject of Ukraine.
Speaker 4: The idea that Russia initially thought it could break the
Speaker 4: will of the Ukrainian people, then it thought it could
Speaker 4: break the will of NATO and the United States.
Speaker 3: And that resolve still stands.
Speaker 4: In the words of Vladimir of President Biden, he said,
Speaker 4: we bowed no one, certainly not Vladimir Putin. And as
Speaker 4: you say, Caroline, he does indicate that within hours we
Speaker 4: will see starts of this aid moving toward Ukraine. On
Speaker 4: the subject of Israel, not only was he talking about
Speaker 4: the defense it could provide Israel in terms of air defenses,
Speaker 4: making sure that they can withstand a future attack like
Speaker 4: the one Iran attempted just ten days ago, but he
Speaker 4: also made the point to talk about humanitarian aid, the
Speaker 4: idea that this will provide aid to Palestinian people, and
Speaker 4: he had pretty sharp words for Israel.
Speaker 3: They must make.
Speaker 4: Sure all of this aid reaches the Palestinians in Gaza
Speaker 4: without delay, going on to say he wants to see
Speaker 4: the hostages that still remain in Hamas's hands returned and
Speaker 4: a cease fire deal reached. It was also interesting that
Speaker 4: he pointed out what this bill did not contain, which
Speaker 4: of course, was any measures on border security. There had
Speaker 4: been with the supplemental Aid package, a border deal that
Speaker 4: was struck earlier this year between bipart negotiators in the
Speaker 4: Senate in the White House. It ended up going nowhere
Speaker 4: in Congress and part in the face of opposition from
Speaker 4: former President Donald Trump and he made sure to call
Speaker 4: that out. As we know, though, while border measures were
Speaker 4: not in it, there were a number of other measures
Speaker 4: that were that don't relate directly to aid to allies,
Speaker 4: including the seizure of frozen Russian assets, which yes, can
Speaker 4: be used to fund Ukraine's war effort. But then of
Speaker 4: course also that TikTok Divestit Turbil Keayley.
Speaker 5: One other area of importance to our audience as well
Speaker 5: Bloomberg Technology is Indo Pacific Taiwan in particular a part
Speaker 5: of this bill in the context of semiconductor electronics infrastructure.
Speaker 5: Just explain the parameters of the bill that relate to
Speaker 5: that region.
Speaker 4: Yeah, this is a much smaller amount of money ed
Speaker 4: than the money that's being provided to Ukraine or Israel,
Speaker 4: to the tune of about sixty plus billion dollars in
Speaker 4: Ukraine's case, twenty billion dollars plus humanitarian aid in Israel's case.
Speaker 4: The Taiwan portion was much smaller, around nine billion dollars.
Speaker 4: And it actually is more broadly about the Indo Pacific,
Speaker 4: not Taiwan individually, although Taiwan certainly represents a big chunk
Speaker 4: of this and that kind of speaks to this idea
Speaker 4: that this in national security interest. They are trying to
Speaker 4: combat many different fronts and many different theaters Russia on
Speaker 4: the one hand in Ukraine, of course, the threat from
Speaker 4: Iran and Iranian proxies in the Middle East, but then
Speaker 4: also the ongoing threat in China, and making sure that
Speaker 4: there is security given the importance of Taiwan not only
Speaker 4: to the US in terms of symbolism and representation of
Speaker 4: a democracy and wanting to maintain that, but then also
Speaker 4: of course the security in that region, given it is
Speaker 4: vital in terms of the supply chain, but also there
Speaker 4: are concerns with other US allies and others in the region,
Speaker 4: like the Philippines in regard to the South China Sea.
Speaker 4: So that is why you see it more broadly be
Speaker 4: the Indo Pacific region that was also addressed and talked
Speaker 4: about a lot less when we were discussing this legislation.
Speaker 2: Kaylene, when we think about Asia, when we think about
Speaker 2: China e Also I think that at the moment of
Speaker 2: President Biden speaking on this signing of the bill, show too.
Speaker 2: The CEO of TikTok also put out his own statement,
Speaker 2: actually using another social media platform of x to post
Speaker 2: his video response saying no, this bill is a disappointing
Speaker 2: moment outline.
Speaker 3: Thus follow what this means the TikTok.
Speaker 4: Well, it was interesting to listen to the language of
Speaker 4: show Choo in this video, Caroline, because of course, what
Speaker 4: this legislation actually does is say TikTok will be banned
Speaker 4: in the US if it is not divested within the
Speaker 4: requisite timeline, which is actually nine months, with the possibility
Speaker 4: of a three month extension, should a sale process already
Speaker 4: be underway, if TikTok or byte Dance specifically were to
Speaker 4: move ahead with the sale of its US division byte Dance,
Speaker 4: though specifically TikTok does not indicate that they are going
Speaker 4: to do so, so Chu said, we will keep fighting
Speaker 4: for these rights in court. He said, the facts in
Speaker 4: the Constitution are on our side and that they expect
Speaker 4: to prevail, basically just signaling that this is going to
Speaker 4: be a protracted legal battle over this issue ahead. And
Speaker 4: despite what lawmakers may say that they want to see
Speaker 4: TikTok continuing to operate in the US, they just want
Speaker 4: it in US hands rather than in the hands of
Speaker 4: a Chinese company that could be shared data with the
Speaker 4: Chinese Communist Party. Shoultchu seems like he begs to differ
Speaker 4: on that he said in this video. Make no mistake,
Speaker 4: this is a ban and a band on you and
Speaker 4: your voice, which is one of the issues that opponents
Speaker 4: of this legislation specifically pertaining to TikTok had around First
Speaker 4: Amendment rates and the idea that this could maybe be
Speaker 4: in violation of those content creators who are trying to
Speaker 4: use this platform to share their voice. Obviously, those concerns
Speaker 4: did not prevail over the wider concerns that proponents of
Speaker 4: this legislation had about the data security of Americans and
Speaker 4: potential Chinese manipulation of the content that they are seeing
Speaker 4: on this platform.
Speaker 5: We will continue to cover this very big TikTok story
Speaker 5: later in the hour of Bloombo's klie Lions.
Speaker 6: Thank you very much.
Speaker 5: The other big in top technology story is Tesla. Tesla
Speaker 5: shares are up twelve percent off session highs where they
Speaker 5: were up sixteen percent and on track for their biggest
Speaker 5: gain in.
Speaker 6: Two years, more than two years.
Speaker 5: Three key points from earnings Tesla is accelerating the introduction
Speaker 5: of lower costs affordable EV platforms. There is in second point,
Speaker 5: which is an absolute focus on AI and autonomous driving
Speaker 5: and must spell that out for Wall Street.
Speaker 6: And the third point is.
Speaker 5: That the first quarter was absolutely disastrous and investors are
Speaker 5: completely looking past it. Bloomberg's Dana Hole has been all
Speaker 5: over the Tesla story for seven days straight and she
Speaker 5: joins us, Now, let's start with what I think the
Speaker 5: market zeroed in on Dana, which is, affordable evs are
Speaker 5: coming sooner than we expected and not in the form
Speaker 5: that we expected.
Speaker 7: Yeah, that was the big surprise, And there were sort
Speaker 7: of two things. The shareholder decks said that they were
Speaker 7: accelerating their more affordable plans, and then on the call itself,
Speaker 7: Musk was very bullish and said, well, we might even
Speaker 7: see these more affordable models by the end of this year.
Speaker 7: So that was a very big positive for investors that
Speaker 7: have been worried that Tesla's slumping sales are because they
Speaker 7: don't have a cheaper EV and you know, the market
Speaker 7: is always very forward looking. I mean, there was a
Speaker 7: lot of negative sentiment going into this call. I think
Speaker 7: there's a sense now that maybe the shairs have hit
Speaker 7: the bottom. And Musk has been Tesla's CEO since two
Speaker 7: thousand and eight. He has been on every single earnings
Speaker 7: call that this company he's had, except for one he
Speaker 7: understands Wall Street psychology and he like pulled a rabbit
Speaker 7: out of a hat and has them focused on the
Speaker 7: bright future.
Speaker 2: Yet again, yeah, not as bad as fed Dana. Can
Speaker 2: you just outline how they accomplished there? For what questions
Speaker 2: did he answer? What transparency did we get on this
Speaker 2: new platform meets current method of manufacturing to create suddenly
Speaker 2: a cheap of vehicle.
Speaker 7: Well, to be clear that, I mean, the earnings print
Speaker 7: was terrible, but he he kind of focused it on,
Speaker 7: you know, on the future and and basically kind of
Speaker 7: knocked down this Reuter's story which had said that there
Speaker 7: is no more affordable car, that the more affordable.
Speaker 3: Car is completely dead.
Speaker 7: Tesla is now basically saying that they have been working
Speaker 7: all along on bringing more affordable cars to market and
Speaker 7: we're going to learn more about that on August eighth.
Speaker 3: So that was a little bit that was still a
Speaker 3: little bit murky.
Speaker 7: But I think the reason why the stock is reacting
Speaker 7: so positively is that he gave people hope that there
Speaker 7: is going to be more affordable models. But also he
Speaker 7: is just incredibly bullish on autonomy and he has been
Speaker 7: for quite some time.
Speaker 8: But the way in.
Speaker 7: Which he spoke, the confidence with which he spoke, and
Speaker 7: you know, he was basically saying, if you don't believe
Speaker 7: that we can solve this autonomous problem, you shouldn't be
Speaker 7: an investor in the spot in the stock was just
Speaker 7: kind of an indication as to how confident he is
Speaker 7: in the technology that Tesla has been working on for
Speaker 7: over a decade.
Speaker 5: Now, let's show a bit of what Musk had to
Speaker 5: say about autonomy. You're exactly right. He spelled it out
Speaker 5: for Wall Street in no uncertain terms. This is the plan,
Speaker 5: it's AI, and it's autonomous driving, Donna. We did get
Speaker 5: some specifics, though, I think that we're trying to understand
Speaker 5: if we got clarity or any new information in the
Speaker 5: shareholder deck has built robotaxi and then on the call
Speaker 5: an explanation of how a robotaxi service would work. What
Speaker 5: did you learn?
Speaker 7: Yeah, I mean, I think the big takeaway is like
Speaker 7: Tesla is coming for Uber. I mean, and they're they're
Speaker 7: they're you know, they're Robotaxi, which must also called the
Speaker 7: cyber cab, is like this combination Waymo slash Uber service
Speaker 7: that will be fully electric and fully autonomous, and I
Speaker 7: mean there's been some question as to how does this
Speaker 7: like fit with the clean Energy mission. It does in
Speaker 7: that if you can utilize vehicles to be their most
Speaker 7: efficient and if the miles that are traveled are electric,
Speaker 7: then you are diverting a large amount of carbon from
Speaker 7: the atmosphere. And so you know, this is this has
Speaker 7: been kind of part of the plan ever since master
Speaker 7: Plan twenty sixty a master Plan Part two in twenty sixteen.
Speaker 7: But the shareholder deck actually shows like the Tesla app
Speaker 7: and I mean they're very much talking about a service
Speaker 7: that sounds like it's going to come sooner rather than later.
Speaker 2: Dnaho phenomenal reporting across the earnings with the podcast going
Speaker 2: deep into really well the focus of email it is
Speaker 2: your good, you mustpeak, take a rest.
Speaker 3: We thank you so much. Let's go now. From an
Speaker 3: investor perspective, look, is this.
Speaker 2: A time to be plowing into Tesla stocks? Certainly the
Speaker 2: market seems to be on the day Nazi Tangla's with
Speaker 2: our CEO CIO of Laffatanga Investments in the house in
Speaker 2: New York.
Speaker 3: Thank you for joining us. Thank you, Caroline.
Speaker 2: Is this reaction right, this increase in Tesla shares on
Speaker 2: the day when.
Speaker 3: Ultimately the court had just gone was ugly.
Speaker 9: Yeah, yeah, well, I agree with Dana.
Speaker 3: Sorry for my voice.
Speaker 2: All good, We'll give you a moment to clear it.
Speaker 9: Elon gave investors what they wanted to hear. He's excellent
Speaker 9: at that, like any good founding CEO. But if you
Speaker 9: look under the hood and you have a long term perspective,
Speaker 9: we think this is a time when you want to
Speaker 9: add to the name, and we've been doing that. It's
Speaker 9: not just the autonomous drive, which by the way, they
Speaker 9: have three hundred billion miles driven in their their models,
Speaker 9: but also it's based on the megapack and the megapack
Speaker 9: is growing at fifty percent a year. It's the most
Speaker 9: profitable division and we think can be worth more than
Speaker 9: the car business in the future. So and those are
Speaker 9: utility grade batteries. So I think that the company is pivoting.
Speaker 9: He's giving investors what they want to hear, and in
Speaker 9: three to five years is going to be a very
Speaker 9: different looking company. How interesting, because.
Speaker 2: We are indeed going to be digging into the battery
Speaker 2: side of the equation. A little bit later in the
Speaker 2: show for the here and now, how cautiously. Do you
Speaker 2: add to a position like Tesla. How much do you
Speaker 2: see that the dipisorting more? Are you buying day in
Speaker 2: day out? Do you suddenly see a moment where you
Speaker 2: get that headlined? Do you then anticipate what happens in August?
Speaker 2: How do you build up a stake in.
Speaker 3: Tesla for you slowly?
Speaker 2: Yeah?
Speaker 9: Yeah, I don't think you want to chase this stock. Ever,
Speaker 9: it's extraordinary early volatile. We were adding it in January
Speaker 9: of last year at one hundred and four dollars a share.
Speaker 9: It went up to two forty or two twenty. We
Speaker 9: sold some and we bought some back a little too early.
Speaker 9: But I think what you want to look for is
Speaker 9: I mean, you know, for most of us ROBOTAXI sound crazy.
Speaker 9: I commute a third of a mile every day and
Speaker 9: coming and going. I see away monk, because I live
Speaker 9: in Scottsdale every single day. You can't go anywhere without
Speaker 9: seeing their ubiquitous and so being second to that market
Speaker 9: is not a bad thing. And I think I think
Speaker 9: Elon and the company has really been focused on improving
Speaker 9: that software and FSD software is pretty slick, and about
Speaker 9: fifty percent of Tesla drivers use it so the you know,
Speaker 9: the adoption rate will increase and the rest of us
Speaker 9: will come to the party at some point.
Speaker 5: And Nancy, good morning, it is great to see you.
Speaker 5: I want to I want to scratch a bit deeper
Speaker 5: at that, because it is it is completely black and
Speaker 5: white for a Musk couldn't be more clear to investors.
Speaker 5: If you do not believe in the autonomous driving vision,
Speaker 5: don't be an investor. But what's interesting, I guess you know,
Speaker 5: for institutional professional investors like you, so many had an
Speaker 5: affordable ev at the heart of their ball thesis. Musk
Speaker 5: is basically saying, no, have autonomy at the heart of
Speaker 5: your ball thesis. What's at the heart of your thesis
Speaker 5: with Tesla.
Speaker 9: Yeah, a good point ed And you know, coming from
Speaker 9: San Francisco as you do, you probably don't see the
Speaker 9: volume of self driving cars that we see, but it's
Speaker 9: in our face every day in Arizona. So I think
Speaker 9: it's an important component of growth. Some say it's sixty
Speaker 9: percent of their number. What we're really focused on is
Speaker 9: the vertical integration of the company, the vertical integration of
Speaker 9: the megapac. I went to the factory. I think I
Speaker 9: shared that with you not too long ago. It's compelling
Speaker 9: and I think as we you know, as we sort
Speaker 9: of grapple with green and renewables, you've got to have
Speaker 9: a way to store that. And Tesla is the industry leader,
Speaker 9: the low cost provider. So that's at the heart of
Speaker 9: our thesis. But we know that it's a story stock
Speaker 9: and you need EVS to come along and you need
Speaker 9: him to be correct on robo. But let's also stipulate
Speaker 9: he's never met his deadlines. He's directionally correct, but he's
Speaker 9: not on time.
Speaker 5: Nancy Tangler's CEO and CIO Lappitanger Investments, couldn't think of
Speaker 5: a better person speak to you this morning.
Speaker 6: Thank you.
Speaker 5: Now, coming up the UK increases scrutiny of AI investments
Speaker 5: from Microsoft and Amazon and their impact on competition. Bring
Speaker 5: you the reporting next, This is Bloomberg Now.
Speaker 2: The UK's antitrust watchdog, the CMA, is gathering information to
Speaker 2: determine whether the four billion dollar collaboration between Amazon and
Speaker 2: the A for amanthropic but that threatens competition in the
Speaker 2: United Kingdom, and also said it was looking at Microsofts
Speaker 2: partnership in mistral and with inflection AI with us. Some
Speaker 2: more Luma's Catherine and Gamel, and the CMA is not holding.
Speaker 3: Back on this.
Speaker 2: They're worried about this interconnected web. Spit it out for us.
Speaker 1: Yes, So last week the CMA said it was worried
Speaker 1: about these interconnected waves of partnerships and investments into AI
Speaker 1: companies by the big tech firms.
Speaker 3: They're worried that.
Speaker 1: You know, the big tech companies are using these as
Speaker 1: covert merger opportunities to you know, really have influence over
Speaker 1: this emerging technology and companies. So today, off the back
Speaker 1: of that, they've opened three new probes and this adds
Speaker 1: to the probe that was already in the works of
Speaker 1: Microsoft's investment into open Ai.
Speaker 5: Catherine very quickly. If the CMA moves forward, what are
Speaker 5: the repercussions.
Speaker 1: Yes, so right now it's just an invitation to comment stage,
Speaker 1: and if they find out that this is a merger
Speaker 1: under their different terms, then it will go to a
Speaker 1: phase one.
Speaker 3: So that'd be the first stage of the probe.
Speaker 1: You know what, then seems it's more sedious and there's
Speaker 1: going to be substantial listening competition, it can go to
Speaker 1: a phase two probe and then obviously at that point
Speaker 1: in marriage of probes in the UK. You know, they
Speaker 1: can ask for divestments of certain things, or they can
Speaker 1: block them altogether and tell them to unwind it. So,
Speaker 1: I mean there's lots of different scenarios, but right now
Speaker 1: it's very much in the early stages.
Speaker 5: Bloombergs Catherine Gemo out of London. Great reporting, Thank you.
Speaker 5: Coming up on the show, more on tech earnings with
Speaker 5: Dan Newman of the Future and Group. Big conversation coming
Speaker 5: up from San Francisco and New York City. This is
Speaker 5: Bloomberg Technology. Welcome back to Bloomberg Technology. Ed Ludlow in
Speaker 5: San Francisco.
Speaker 2: I'm Caroline Hired in New York and let's get a
Speaker 2: quick check on these markets, because well we are thick
Speaker 2: and fast in earning season. We're also still trying to
Speaker 2: digest some big bond market action. Big sales of five
Speaker 2: year coming today after two year auction. Yes, then as
Speaker 2: that one hundred managing to push above that three tenths
Speaker 2: of a percent, and the moments are holding onto gains.
Speaker 2: More broadly, as big tech wins out Teslo, we dug
Speaker 2: into interesting moves with the Japanese yen basically weakening to
Speaker 2: levels we haven't seen in two three decades, and we're
Speaker 2: expecting maybe some intervention as we break through this one
Speaker 2: five to five levels. So keep an eye on dollar
Speaker 2: strength further versus Japanese yen. Bitcoin down versus the US
Speaker 2: dollar today we're off by two point four percent, so
Speaker 2: there is still some anxiety and risk assets more broadly,
Speaker 2: move on, have a little look at what's happening in
Speaker 2: terms of individual moves on the tech landscape now not
Speaker 2: totally tech, but a lot to do with tech is Boeing,
Speaker 2: and this is interesting as we suddenly take a leg
Speaker 2: lower into the red. It had been flying high more
Speaker 2: than four percent after earnings came in better than expected.
Speaker 2: But then that headline, crucial headline, the seven eight to
Speaker 2: seven is going to be produced on just five jets
Speaker 2: per month.
Speaker 3: That's a worry to investors.
Speaker 2: Right now, Tesla just soaring up eleven percent after of
Speaker 2: course awful first quarter in terms of revenue and profitability,
Speaker 2: but pointing towards yet still a focus on those cheaper,
Speaker 2: more affordable cars.
Speaker 3: I'm looking at Texas instruments.
Speaker 2: This is why we're seeing the socks generally, the benchmark
Speaker 2: of Chips sucks all higher today, ups more than six
Speaker 2: percent really some optimism coming after the bell yesterday with
Speaker 2: its earnings spread across IBM.
Speaker 3: Maybe there's a deal going on with IBM.
Speaker 2: They're looking at hash you call, that's what's being currently
Speaker 2: dibated by the market. We'll get more on earnings after
Speaker 2: the well from IBM, and let's dig into some of
Speaker 2: those earnings.
Speaker 5: Yeah, there's a lot of names. IBM is a key
Speaker 5: one after the bell. Meta is one that is absolutely
Speaker 5: huge and we haven't touched on yet. Let's get to
Speaker 5: the what to expect and bring in the future. From
Speaker 5: group CEO Dan Newman, I think let's start with Meta
Speaker 5: because everyone's talking about Meta in the AI context, huge
Speaker 5: run up in market cap, It is completely outperforming its
Speaker 5: social media peers because of AI. What are your expectations
Speaker 5: for the name?
Speaker 10: Yeah, first of all, good to see you both ed
Speaker 10: in Carolina. It's always good to join the show. Meta
Speaker 10: has been on an incredible run and what it's recently
Speaker 10: been able to do both in the open source community
Speaker 10: with the new Lama models and of course being able
Speaker 10: to build on those models and apply them to their technology,
Speaker 10: has been nothing short of astounding.
Speaker 8: You know, last year it was all about.
Speaker 10: The company getting operationally in line, they made the cuts
Speaker 10: they had to make, they started growing. The market in
Speaker 10: the street really reacted well. Now it's can they continue
Speaker 10: that growth on a year over year basis, And they've
Speaker 10: had several continuous quarters of really great growth. But I
Speaker 10: think they can do it. And I think they did
Speaker 10: get a boost with what's going on with TikTok as well,
Speaker 10: And I don't know that that will immediately come into effect,
Speaker 10: but I mean they are the biggest winner of that decision.
Speaker 8: And so what the market really should.
Speaker 10: Be is expecting is this company is gonna be talking
Speaker 10: all about AI today. They're gonna be talking about how
Speaker 10: that's going to create better experiences, and they have this
Speaker 10: really committed platform, and unlike search, which generative AI is
Speaker 10: going to disrupt, the reason people are on metas apps
Speaker 10: and on Metas platform is more about community. It's more
Speaker 10: about social and I think they're going to become the
Speaker 10: biggest winner in this in this AI boom.
Speaker 5: When METSA is earning Statement's hit and on the core,
Speaker 5: I'm going to be looking for commentary around add pricing
Speaker 5: growth from AI and impressions. But it's a different AI
Speaker 5: story to Microsoft to Google.
Speaker 6: That's that's next week.
Speaker 5: But is there a commonality between those two names in
Speaker 5: this earning season that you're focused on.
Speaker 10: Yeah, I think it's the ability to apply the AI
Speaker 10: technology that's being developed to driving that revenue, driving margin enhancement,
Speaker 10: creating stickiness on the platforms across the board. You know,
Speaker 10: we know that the search market is going to be
Speaker 10: disrupted attribution click through, but people spending time on social
Speaker 10: platforms AI is only making it stickier, which is going
Speaker 10: to give pricing power to Meta and you've got to
Speaker 10: like that a lot. I also really love what they're
Speaker 10: doing in terms of building their own technology.
Speaker 8: The company has become the open tech company.
Speaker 10: I mean, who would have thunk that in the world
Speaker 10: of Apple and Meta that Apple was going to go
Speaker 10: closed and Meta was going to double down on going open.
Speaker 10: They're building these really robust, high fidelity models with Lama three,
Speaker 10: and then of course now it's Horizon.
Speaker 8: They're doing it for AR and v are. They're basically
Speaker 8: saying we're going to.
Speaker 10: Be the open platform for developing these next generation technologies.
Speaker 8: So there's just a lot to like.
Speaker 10: The one concern I do have is that on a
Speaker 10: year over year basis, they've grown so fast that this expectation.
Speaker 8: From the street. They could have a great quarter and
Speaker 8: still miss.
Speaker 10: And I think you have to keep that into perspective
Speaker 10: that they've had six tremendous quarters in a row.
Speaker 8: At some point that music's going to stop.
Speaker 10: I think we're gonna be asking that question about Nvidio
Speaker 10: later this quarter as well.
Speaker 2: Yeah, with such a huge market capitalization increase on meta,
Speaker 2: can they live up to it? But Dan, in that breath,
Speaker 2: we did hear ed mention Microsoft.
Speaker 3: And Google Alphabet.
Speaker 2: Both of those are cloud names too, and I want
Speaker 2: to just spoken on the cloud name that's coming after
Speaker 2: the bell today because IBM of course big ideal on
Speaker 2: hybrid cloud on prem of course in and then bringing
Speaker 2: it to the cloud where your data was going to
Speaker 2: be stored. I'm interested in what you make of all
Speaker 2: this rumor around deal with Hawshi call Movady.
Speaker 3: What a you're expecting from the numbers.
Speaker 10: Yeah, IBM's a really interesting one because I've been very
Speaker 10: fond of their the growth and the strategy. I've spent
Speaker 10: time with Arvin Krishna and he's really doubled down on
Speaker 10: hybrid cloud and AI. It's not trying to be a
Speaker 10: hyper scale hyperscale cloud provider like an AWS.
Speaker 8: It's really saying we want.
Speaker 10: To be the enterprise cloud provider and we're going to
Speaker 10: double down on AI. And where's that coming through really
Speaker 10: with their Watson X products. So Watson X on a
Speaker 10: quarter to quarter basis has seen its numbers double the
Speaker 10: last couple of quarters, and you're still talking hundreds of
Speaker 10: millions of dollars. But this platform has a lot of
Speaker 10: what you know, the enterprises need. It's the data strategy
Speaker 10: and management, and it's also the governance and compliance.
Speaker 8: We hear so much.
Speaker 10: From these big cloud providers about issues and risks related
Speaker 10: to how data is trained and how people.
Speaker 8: Are consuming it.
Speaker 10: IBM has really leaned in on that governance, and I
Speaker 10: think large enterprises are giving the company a look and
Speaker 10: saying we need someone that can really manage our data.
Speaker 10: So I'm expecting that number from Arvind and CFO Jim
Speaker 10: Cavnaw to be a big focus today. Having said that,
Speaker 10: you know you asked about the Microsoft Googles. I mean, look,
Speaker 10: those two have been the fastest growing two clouds.
Speaker 8: I expect that to continue.
Speaker 10: Google came off a really positive cloud next they're building
Speaker 10: out their own Silicon they're vertically integrating. And the one
Speaker 10: thing I'll say is, whether it's Open Ai, whether it's
Speaker 10: Gemini and Vertex, all these large cloud providers are finding
Speaker 10: that people are building on more than one cloud, and
Speaker 10: AI has been the driver that's finally brought this multi
Speaker 10: cloud strategy to life.
Speaker 2: I just want to go back to what you're saying
Speaker 2: almost with Meta, being like they can still have a
Speaker 2: great quarter but miss the very heavy expectations. More broadly,
Speaker 2: we have seen this market near record highs still because
Speaker 2: of this aipay, this euphoria. Do you really put stock
Speaker 2: in the fact that these companies can live up to
Speaker 2: the high expectations of this quarter.
Speaker 10: I'll tell you what the entire market is on stilts
Speaker 10: that these quarters need.
Speaker 8: These companies need to live up to the expectation.
Speaker 10: There really is so much troubling economic data out there,
Speaker 10: whether it's this sticky inflation, whether it's higher interest rates,
Speaker 10: whether it's concerns about elections, you got, you know, geopolitical
Speaker 10: issues around the world, and right now AI has been
Speaker 10: the propellant of this industry. In Vidia's numbers will create
Speaker 10: probably more concern than even these, But look, if Microsoft
Speaker 10: and Google have a tough quarter and to.
Speaker 8: Some extent Meta too, people are going to start to be.
Speaker 10: Alarmed of whether or not this AI growth is going
Speaker 10: to accelerate to this multi trillion dollar opportunity the near
Speaker 10: term because with higher rates you've got to discount long
Speaker 10: term cash flows. You have to look against the value
Speaker 10: of growth the forward multiples. But AI has kind of
Speaker 10: enabled us to all oversee it because Microsoft's Open AI
Speaker 10: is accelerating, Google's AI is accelerating, Metas AI is accelerating.
Speaker 10: So I actually think that this week and then next week,
Speaker 10: with a couple.
Speaker 8: Of the you know, the Amazons and the apples.
Speaker 10: That are going to follow, well, if these don't come
Speaker 10: out well, Caroline, I actually am concerned that this could
Speaker 10: be what drives the next leg down. But having said that,
Speaker 10: I am optimistic that these companies are going to get
Speaker 10: more clear and prescriptive as to how AI is driving
Speaker 10: growth and how it will continue to drive growth, productivity,
Speaker 10: and efficiency because people want to see earnings.
Speaker 2: Yeah, I want to see the proof that this is working.
Speaker 2: Daniel Newman, great to have you back the Future and Group.
Speaker 3: Thank you. Meanwhile, let's just turn our attention to the
Speaker 3: future of entertainment.
Speaker 2: The industry there could well depend on reaching a truly
Speaker 2: worldwide audience, and so Netflix is doubling down on those
Speaker 2: global ambitions.
Speaker 3: Blomeg Original's host and Many.
Speaker 2: Chang sat down on Netflix's chief content officer, that's Beloma
Speaker 2: Bajaria for close to look at the entertainment chance a
Speaker 2: global strategy.
Speaker 3: Just take a listen.
Speaker 11: I have had lots of jobs in Hollywood and linear
Speaker 11: networks and studios, and I think there was a really
Speaker 11: domestic focus and then you sell later. After the fact
Speaker 11: that you sell, you can tell your title internationally. We're
Speaker 11: a Horble service and we're in one hundred and eightty countries,
Speaker 11: so we were always going to do storytelling, you know,
Speaker 11: locally in that way. So that's always just been a
Speaker 11: big part of our business in two thirds of our
Speaker 11: members around sid anyway.
Speaker 3: Right, Well, that was my next er, like is it
Speaker 3: paying off? Yes, that I say, it's also.
Speaker 11: Understanding that people in different countries. It's also the investment
Speaker 11: in local storytelling right to spend time in those places,
Speaker 11: not have a Western lens on what that is and
Speaker 11: understand each you know, local kind of creative ecosystem and
Speaker 11: so be close to the storytelling.
Speaker 5: That was Netflix's Chief content of Sir Bella Bajaria now
Speaker 5: coming up what the TikTok bill could mean for creators
Speaker 5: and businesses they use the social media platform with LTK
Speaker 5: co founder and president Amber Ven's box. That ain't Amber,
Speaker 5: but I'm sure she'll appear momentarily Carrots.
Speaker 1: So pick.
Speaker 2: Meanwhile, let's just talk about another interesting story that's happening
Speaker 2: in terms of the destination of where certain companies are located.
Speaker 3: Oracle's doing again.
Speaker 2: They moved from California to Texas and now well a
Speaker 2: listener's moving Oracle to Nashville from Texas. Larry Alison making
Speaker 2: that decision because look, this is about a bet on
Speaker 2: the future of healthcare and provision of what he can do.
Speaker 3: There are for a big deal. This is Bloomberg technology.
Speaker 5: Let's get back to the legislation involving TikTok. Let's bring
Speaker 5: in Bloomberg's Alex Brinka. Alex are in the program we
Speaker 5: had that breaking news from show to the TikTok CEO
Speaker 5: basically saying in summary, whatever happens, we're not going anywhere.
Speaker 5: He really leaned on this idea that this was an
Speaker 5: issue of freedom of speech. You've written a really smart piece.
Speaker 5: In the last twenty four hour I was about the
Speaker 5: two hundred and seventy day timeline.
Speaker 6: So the bill signed.
Speaker 5: Into law, but there is a curious chronological occurrence relating
Speaker 5: to inauguration day post election.
Speaker 6: Just explain you're reporting.
Speaker 12: Yeah, So this bill gives two hundred and seventy days
Speaker 12: for byte Dance to separate from TikTok or else face
Speaker 12: a ban in the US, but there is a clause
Speaker 12: in there that allows the president at the time to
Speaker 12: extend that for an additional ninety days. Now, that two
Speaker 12: hundred and seventy day deadline ends up being on January
Speaker 12: nineteenth for the election savvy you'll know that's the day
Speaker 12: before inauguration Day. So regardless of what happens in this
Speaker 12: presidential election, President Biden will be on the hook for
Speaker 12: deciding does TikTok and byte Dance get an additional extension
Speaker 12: if there is no divestitor at that point. It's an
Speaker 12: important distinction to make because of what we've seen out
Speaker 12: of the leading Republican candidate for president, Donald Trump. Trump
Speaker 12: is the man who did write the first executive order
Speaker 12: to ban TikTok in the US in twenty.
Speaker 3: Twenty but these days he's changed his tune.
Speaker 12: He's actually said he thinks TikTok should stay. So this
Speaker 12: kind of battle TikTok's had with DC has been very
Speaker 12: much pulled around by whichever administration is in power, and
Speaker 12: it seems with this happenstance timing that that is not
Speaker 12: going to change through this next election.
Speaker 2: Such smart reporting throughout this week and on long weekend,
Speaker 2: Alex Brunka, we thank you so much for all the
Speaker 2: nuances surrounding TikTok. Now we want to get the perspective
Speaker 2: of the creator right now. Are they still really focusing
Speaker 2: in on TikTok, on the shop, the commerce offerings?
Speaker 3: Joining us now?
Speaker 2: I'm a Ven's Box, president and co founder of influencer
Speaker 2: shopping app and tech platform LTK.
Speaker 3: You yourself, in many ways an influencer.
Speaker 2: You're then building a business that supports influencers. What are
Speaker 2: the questions you're currently fielding? Are people turning away from
Speaker 2: TikTok amid the volatility the unknowns?
Speaker 13: Right now, we're educating a whole new generation of creators
Speaker 13: of what's it like to live and future proof your
Speaker 13: business in the creator economy. We've seen this now we
Speaker 13: launched our business in twenty eleven. At that point we
Speaker 13: were talking about blogs and then you know, let's see
Speaker 13: next came Pinterest, and then Instagram and then Snap and tiptok.
Speaker 13: So I'm old enough to have lived through several several
Speaker 13: generations of platforms, and I see them now where they
Speaker 13: rise and then they maybe follow out.
Speaker 3: A consumer favor.
Speaker 13: Like to say, there's either an evolution of these platforms
Speaker 13: or a revolution. This is something that we have built
Speaker 13: for specifically at LTK. We're in kind of what i'd
Speaker 13: call the third chapter. So moving from that first chapter
Speaker 13: being blogs, second chapter social media, now third chapter where
Speaker 13: creators need to find a home base. What we've seen
Speaker 13: happen on TikTok, they've changed the paradigm for social media.
Speaker 13: It's no longer about building community, it's about interest based feeds.
Speaker 3: So as a creator, I then.
Speaker 13: Have to hook someone based on their interest and then
Speaker 13: bring them back to the home base. And so right
Speaker 13: now we are in an effort to make sure that
Speaker 13: our creators who have started their career on TikTok understand
Speaker 13: that this is expected, it's prepared for, and they have
Speaker 13: actionable next steps.
Speaker 2: And that's really interesting and what I'm also wondering, is
Speaker 2: how many questions you're fielding on whether the influencer's role
Speaker 2: is to support one of their key platforms. What's been
Speaker 2: so notable is this time round, this sudden flurry of
Speaker 2: activity on the hill and it's.
Speaker 3: Whizzing through Congress. We haven't heard much from the influencer base.
Speaker 2: So too puts out a call to say, tell us
Speaker 2: your stories make it clear to lawmakers as to why
Speaker 2: this is so important.
Speaker 3: Should you be fighting for TikTok?
Speaker 13: Well, history also tells us that the platforms are ultimately
Speaker 13: misaligned to creators. I hate to have to say that,
Speaker 13: but it's true. The business models just don't work for
Speaker 13: a creator. They're taking usually one hundred percent margin on
Speaker 13: their ad revenue and not paying the creator. But the
Speaker 13: creator gets out of this. What I would still say,
Speaker 13: the symbiotic relationship is distribution and discoverability, and so a
Speaker 13: creator's loyalty is truly to their audience and not to
Speaker 13: the platform. And that's what they're feeling right now is
Speaker 13: how do I make sure that my audience knows I'm here,
Speaker 13: I'm not going anywhere, and where they can find me
Speaker 13: because I want to conte you need to be in
Speaker 13: a relationship with them, because ultimately that is what I
Speaker 13: have to sell. It's the trust I have with that community,
Speaker 13: which means I have to have one.
Speaker 5: The technology secret source amber for TikTok seems to be algorithmic.
Speaker 6: Right.
Speaker 5: You've talked about interest based feeds and in a divest scenario,
Speaker 5: there's a lot of concern that algorithmically China might act.
Speaker 5: I don't expect you to weigh in on that, but
Speaker 5: I think there's a value you add in explaining to
Speaker 5: our audience how effective TikTok is algorithmically speaking in matching
Speaker 5: the content to its target audiences.
Speaker 13: Incredibly effective. It's absolutely changed what it means to be
Speaker 13: a social media platform. Before this, you know, you didn't
Speaker 13: really think or talk about like explore pages or discovery pages.
Speaker 13: It was truly about finding someone that you like and
Speaker 13: then be a recommended another person, which was really more
Speaker 13: about machine learning than about AI. When TikTok entered the scene,
Speaker 13: their algorithm is so far superior to what we're seeing
Speaker 13: on any other platform that you could log into the platform,
Speaker 13: actually not follow anyone, and have a feed that felt
Speaker 13: like it was absolutely one hundred percent created just for
Speaker 13: you like, this platform was made for you, and that's
Speaker 13: why we see if you look across on average where
Speaker 13: adults are spending their time, TikTok has almost an hour
Speaker 13: a day on average for adults, and that's much greater
Speaker 13: than I think YouTube's in second place behind them, and
Speaker 13: then falling down behind her all of the other social
Speaker 13: media platforms.
Speaker 6: So that is their secret sauce.
Speaker 9: We know that.
Speaker 13: Of course, in China there's legislation that they are actually
Speaker 13: not allowed to export their algorithms, and so in any
Speaker 13: sort of a divestature from what the Chinese government is saying,
Speaker 13: the algorithm would not come with.
Speaker 5: The TikTok property amber very quick. If you can't use TikTok,
Speaker 5: what's the next best thing?
Speaker 6: Ltk?
Speaker 13: Our creators are creating there every single day. They're making
Speaker 13: it a place where they can connect with their audience. Again,
Speaker 13: the most important thing that a creator has is trust,
Speaker 13: and that's why we see that actually with gen z,
Speaker 13: they're three times more likely to trust a creator over
Speaker 13: an ad We now see that the vast joy the
Speaker 13: population now says that they shop from creators. And so,
Speaker 13: as a creator, if trust is what you're selling, how
Speaker 13: do you stay in touch with that audience every day.
Speaker 8: The job that.
Speaker 13: Social media was doing last year, they're not doing for
Speaker 13: you today. They're a discovery platform and so you've got
Speaker 13: to have a place where you're.
Speaker 3: Growing your community.
Speaker 5: Amber Ven's Box, President co founder of LTK, Thank you
Speaker 5: so much. Now, coming up on the show, we're going
Speaker 5: to be joined by Science Co CEO ilam Cadre for
Speaker 5: a discussion on EV batteries. This is Bloomberg technology EV
Speaker 5: industry top of mind after Tessa's earning. Science Co is
Speaker 5: a crucial player in all of that specialty. Keenalties Company
Speaker 5: about to break ground on a flagship site in Augusta,
Speaker 5: Georgia tomorrow.
Speaker 6: It will serve as North.
Speaker 5: America's largest capacity production facility for polyvinyl idin fluoride, a
Speaker 5: critical component of EV batteries, joining US Science Co CEO
Speaker 5: ilhum Cadri. The narrative from Tesla is demand on the
Speaker 5: EV side, low hybrids are interfering. Why is the chemical
Speaker 5: company specialize in important right now?
Speaker 8: Yeah?
Speaker 14: Well, hello and good morning.
Speaker 3: Thank you for having me.
Speaker 14: It's gonna be a great day tomorrow. Were groundbreaking in Augusta,
Speaker 14: one of the largest material and the largest material manufacturing sights,
Speaker 14: which is going to common stream in the next five
Speaker 14: years to cater more or less five million ev cars.
Speaker 14: We still believe that the long term fundamentals of the
Speaker 14: electrification in Americas are still there. We believe that more
Speaker 14: than thirty percent adoption will happen between now and twenty
Speaker 14: thirty in the world, it's going to be more than
Speaker 14: half of the production's fleet will move to EV or hybrid. So, yeah,
Speaker 14: you are seeing some delays for good reasons, right, some
Speaker 14: softness in says, but you know it takes three years
Speaker 14: anyway to build the plant, and we believe in this
Speaker 14: electrification fueled by consumers by the giga factories. Ten are
Speaker 14: already in place, twenty seven are in construction, and our
Speaker 14: customers are demanding on shoring domestic manufacturing materials like ours
Speaker 14: to suppose the adoption and cost competitiveness.
Speaker 2: Supply chain has been a constant headache for many. From
Speaker 2: your perspective, what is needed to ensure that we hate
Speaker 2: that level of adoptions of evy and hybrids over the
Speaker 2: next cost the five years.
Speaker 14: You need cheaper cars, ev cars and hybrid cars, right,
Speaker 14: and you need this and the technology in batteries is
Speaker 14: going to enable that. Right, just a few years back,
Speaker 14: half of the cost of Tesla car used to be
Speaker 14: a battery. Now it's twenty fifteen percent. We're going to
Speaker 14: get it to a single digit. So our materials they
Speaker 14: offer more efficiency in the batteries, higher elexical density actually,
Speaker 14: and therefore more autonomy in driving.
Speaker 3: Right, let's drive in eggs.
Speaker 14: So I think the cost curve of the ivy and
Speaker 14: hybrid cars are gonna come down, like any new technologies,
Speaker 14: and we're an enablers today we commercialize the generation too
Speaker 14: lethium ion batteries. We are agnostics to technology. We go
Speaker 14: to LFPN, n C and others. But we are already
Speaker 14: working on generation four and five solid batteries, which gonna
Speaker 14: get even smaller batteries, cheaper, more affordable, safer.
Speaker 2: Well, congratulations on breaking ground tomorrow. We look forward to
Speaker 2: having on the show sunce Co CEO doctor Elm Calder.
Speaker 3: We thank you.
Speaker 2: Wow, what a well when that does a decosition of
Speaker 2: bloom bang technology.
Speaker 6: And we are in the thick of it.
Speaker 5: Earnings wise, check out the podcast recapp in particular Tesla.
Speaker 5: Find the pot on Apple, Spotify, iHeart and you can
Speaker 5: also find it of course on the Bloomberg platforms.
Speaker 6: Buckle up big week. This is Bloomberg Technology.