WEBVTT - Harris and Trump Debate on Chips, Crypto Declines 0:00:01.400 --> 0:00:05.720 From Marhart were Innovation, Money and Power Collie in Silicon 0:00:05.800 --> 0:00:10.240 Valley NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.480 --> 0:00:11.280 Ed Loved Love. 0:00:25.160 --> 0:00:27.560 Lie from New York and San Francisco. This is Bloomberg 0:00:27.640 --> 0:00:31.280 Technology coming up. Pamela Harris and Donald Trump squaring off 0:00:31.520 --> 0:00:33.080 in their first presidential debate. 0:00:33.159 --> 0:00:35.360 We talked the tech angles and. 0:00:35.320 --> 0:00:39.000 The crypto sector, nursing declines as betting markets reveal new 0:00:39.040 --> 0:00:43.040 momentum for the vice president. Markets react to the debate. 0:00:43.080 --> 0:00:46.720 And Amazon that's big on Britain looking to expand its 0:00:46.760 --> 0:00:49.760 cloud business with a ten point four billion dollar UK 0:00:49.840 --> 0:00:53.400 investment plan. The first is market sink. Let's get straight 0:00:53.840 --> 0:00:57.320 to the first US president debate that saw former President 0:00:57.360 --> 0:01:00.920 Trump and Vice President Kamala Harris trading on the handling 0:01:00.920 --> 0:01:04.080 of America's semiconductor industry and the feature of AI. 0:01:05.600 --> 0:01:09.320 Well, let's be clear that the Trump administration resulted in 0:01:09.360 --> 0:01:12.000 a trade deficit, one of the highest we've ever seen 0:01:12.040 --> 0:01:15.679 in the history of America. He invited trade wars. You 0:01:15.720 --> 0:01:18.920 want to talk about his deal with China. What he 0:01:19.080 --> 0:01:22.520 ended up doing is under Donald Trump's presidency, he ended 0:01:22.600 --> 0:01:28.280 up selling American chips to China to help them improve 0:01:28.319 --> 0:01:30.040 and modernize their military. 0:01:31.680 --> 0:01:34.800 First of all, they bought their chips from Taiwan. We 0:01:34.959 --> 0:01:39.120 hardly make chips anymore because of philosophies like they have 0:01:39.360 --> 0:01:42.200 and policies like they have. I don't say her because 0:01:42.200 --> 0:01:45.920 she has no policy. Everything that she believed three years 0:01:45.920 --> 0:01:48.720 ago and four years ago is out the window. She's 0:01:48.760 --> 0:01:50.000 going to my philosophy now. 0:01:50.040 --> 0:01:51.919 In fact, I was going to send her a mega hat. 0:01:53.520 --> 0:01:57.000 Blomberg's David Gura is in Philadelphia. You were there for 0:01:57.040 --> 0:01:59.960 the live action, David, We focus on the tech angle. 0:02:00.120 --> 0:02:01.520 But what did you draw from the debate? 0:02:04.320 --> 0:02:05.680 Well, welcome back to what you just played there. 0:02:05.680 --> 0:02:07.560 I mean, I think that was a more robust exchange 0:02:07.560 --> 0:02:09.720 on policy than we saw many of the topics that 0:02:09.760 --> 0:02:12.040 were covered during the course of that debate. So there 0:02:12.040 --> 0:02:15.000 were questions about former President Trump's tariff's policy, and of 0:02:15.000 --> 0:02:17.239 course He's doubled down saying that he's going to impose 0:02:17.280 --> 0:02:20.400 more blanket tariffs, not just on China, but on Mexico 0:02:20.440 --> 0:02:22.679 as well other countries. So I thought that that was 0:02:22.760 --> 0:02:26.200 kind of an illuminating moment and something that Vice President 0:02:26.240 --> 0:02:28.280 Harris then spoke about afterward were the investments that the 0:02:28.320 --> 0:02:31.840 Biden administration has made in trying to boost semiconductor production 0:02:31.960 --> 0:02:35.320 here in the United States during this administration, and also 0:02:35.360 --> 0:02:37.359 noting the fact that when you look at tariffs and 0:02:37.360 --> 0:02:39.960 tariffs have been levied on China when it comes to semiconductors, 0:02:40.360 --> 0:02:42.880 in fact, it has been the Biden Harris administration that 0:02:42.919 --> 0:02:46.160 has elevated them even more so. Look, this was more 0:02:46.160 --> 0:02:48.080 than ninety minutes long. It went longer than we thought 0:02:48.080 --> 0:02:51.880 it would go. Was there's little policy at the beginning, 0:02:51.880 --> 0:02:53.960 but we saw diversions from that pretty quickly, and I think, 0:02:54.000 --> 0:02:56.160 you know, to the gree to which economics was discussed. 0:02:56.160 --> 0:02:58.360 Trade was one moment again where I thought there was 0:02:58.400 --> 0:03:01.840 at least some spirited back and forth between these two 0:03:01.880 --> 0:03:04.440 candidates getting to subsubstance on that issue. 0:03:04.480 --> 0:03:09.000 Guys Harris kept in line with the administration's policy that 0:03:09.120 --> 0:03:12.080 everything to do with chips from a restriction standpoint is 0:03:12.800 --> 0:03:15.040 in the interest in national security. And then Trump went 0:03:15.080 --> 0:03:17.800 after the track record right what they did or didn't 0:03:17.840 --> 0:03:20.600 do over the last four years. It's hard to see 0:03:20.600 --> 0:03:23.280 where an aggregate we've landed. David, you know, look at 0:03:23.280 --> 0:03:26.280 social media and the reporting on the Bloomberg terminal. What 0:03:26.440 --> 0:03:28.720 is the net result of that debate last night. 0:03:31.680 --> 0:03:33.320 Well, I go back to what I heard from Governor 0:03:33.360 --> 0:03:36.040 Gavin Newsom of California before this debate. I said, how 0:03:36.080 --> 0:03:38.280 pivotal is and how important is it? What difference could 0:03:38.320 --> 0:03:40.160 this make? And he said, think of it like World 0:03:40.160 --> 0:03:42.960 War One, where it's going to be something determined by inches, 0:03:43.040 --> 0:03:45.280 not anything more than that. This is such an incredibly 0:03:45.320 --> 0:03:47.920 close race between these two candidates, it would be folly 0:03:47.920 --> 0:03:50.360 to think that a good performance in that debate would 0:03:50.400 --> 0:03:53.160 have a sizable impact in raising a candidates stature in 0:03:53.200 --> 0:03:55.560 the polls. Conversely, if there were a bad performance, that 0:03:55.560 --> 0:03:57.720 would have a negati effect, dramatically negative effect on those 0:03:57.720 --> 0:04:00.440 polls as well. I think you're right. I mean, you 0:04:00.480 --> 0:04:02.520 look ahead here. We've got fewer than sixty days until 0:04:02.560 --> 0:04:05.480 this election. Both of these candidates, I think rightly recognize 0:04:05.480 --> 0:04:07.360 this is going to be a very hard fought campaign 0:04:07.560 --> 0:04:09.800 and one that's going to be decided fundamentally by just 0:04:09.840 --> 0:04:12.200 a few thousand voters. And it's rather extraordinary to say 0:04:12.200 --> 0:04:13.880 when you look at the whole population of this country 0:04:13.920 --> 0:04:17.640 and the voting electorate. We talk about swing states, it's 0:04:17.640 --> 0:04:19.520 more granular than that. Of course, you all know that 0:04:19.600 --> 0:04:22.960 as well. We're talking about districts in particular. So I 0:04:22.960 --> 0:04:25.400 think what we're going to see is in effort to 0:04:25.440 --> 0:04:27.880 capitalize and whatever ment in these candidates got last night, 0:04:27.960 --> 0:04:30.760 carry that onto the campaign trail. Vice President Harris going 0:04:30.760 --> 0:04:33.200 down to North Carolina tomorrow, then back up to Pennsylvania, 0:04:33.480 --> 0:04:35.400 those two swing states over the course of this week. 0:04:35.640 --> 0:04:37.839 Donald Trump making the pilgrimage out to California for a 0:04:37.839 --> 0:04:39.240 press conference at the end of the week, when in 0:04:39.240 --> 0:04:42.120 Nevada and Arizona as well. So they're going to be 0:04:42.160 --> 0:04:44.000 back on the trail here, trying to talk their book, 0:04:44.040 --> 0:04:46.680 trying to do all they can to woo those undecided 0:04:46.760 --> 0:04:50.120 voters again a very small sliver of the US electorate. 0:04:50.400 --> 0:04:53.839 And of those voters, Taylor Swift now coming out endorsing 0:04:53.880 --> 0:04:56.360 Kamala Harris, which we'll get to in more detail later 0:04:56.400 --> 0:04:58.400 in the program. David Gourr on the ground, Thank you 0:04:58.520 --> 0:05:01.440 very much. Let's continue with the CKS reaction to last 0:05:01.520 --> 0:05:03.960 night's debate. Bluebogs abail do a little with us, and 0:05:04.000 --> 0:05:05.839 I think this is cross asset. What are you seeing? 0:05:06.440 --> 0:05:08.680 It is certainly cross asset, and it's interesting right now, 0:05:08.839 --> 0:05:11.000 stocks down broadly, the S and P five hundred and 0:05:11.000 --> 0:05:12.880 the nasack down more than one percent. I think that 0:05:12.920 --> 0:05:14.920 has less to do with the debate and has more 0:05:14.960 --> 0:05:18.200 to do with other factors of uncertainty. Relative to the 0:05:18.240 --> 0:05:21.320 reaction to the debate, I would say right now, DJT 0:05:21.560 --> 0:05:23.640 is one of the better signals in terms of what 0:05:23.760 --> 0:05:27.440 investors saw, with the stockdown about fifteen percent, the worst 0:05:27.480 --> 0:05:28.240 day since April. 0:05:28.240 --> 0:05:29.120 So I would say this is. 0:05:29.279 --> 0:05:33.320 Clearly a vote away from the Trump trade, if you will, 0:05:33.360 --> 0:05:37.960 and one way that the markets are backing VP Kamala Harris. 0:05:37.960 --> 0:05:39.560 In fact, if we take a look at the betting odds, 0:05:39.800 --> 0:05:42.880 just yesterday, both candidates had been at fifty two percent 0:05:43.040 --> 0:05:47.800 a piece. This after former President Donald Trump, right when 0:05:47.920 --> 0:05:51.120 Kamala Harris got into the race, led her by let's 0:05:51.160 --> 0:05:53.840 call it twenty percent. She then led Donald Trump by 0:05:53.839 --> 0:05:57.160 about twelve to fifteen percent. But again yesterday, going into 0:05:57.200 --> 0:06:01.279 that debate, fifty two percent a piece, the spread five 0:06:01.360 --> 0:06:05.000 to seven percent apart in favor of VP Harris. So 0:06:05.040 --> 0:06:07.680 this is another way markets are telling you that they 0:06:08.000 --> 0:06:11.719 thought that Kamala Harris's performance was at least stronger, and 0:06:12.040 --> 0:06:13.880 or do they think that she will in fact be 0:06:13.880 --> 0:06:15.640 elected in November. In fact, if we dig in just 0:06:15.680 --> 0:06:17.280 a little bit deeper and we take a look at 0:06:17.440 --> 0:06:20.839 what could be a Harris trade, which would be green energy, 0:06:21.000 --> 0:06:26.040 it would be healthcare that goes toward Medicare Medicaid along 0:06:26.080 --> 0:06:28.599 with the home builders. It's interesting that's one area that 0:06:28.720 --> 0:06:31.360 is actually not favoring her right now. One of her 0:06:31.400 --> 0:06:33.200 policies for the best that we know is a twenty 0:06:33.200 --> 0:06:36.440 five thousand dollars tax credit excuse me, down payment for 0:06:36.560 --> 0:06:39.839 first time homebuilders. Some of the homebuilders that are geared 0:06:39.920 --> 0:06:43.839 toward those early homebuilders or home buyers, they are down today, 0:06:44.240 --> 0:06:44.839 but those. 0:06:44.680 --> 0:06:46.880 Other areas are higher. 0:06:46.920 --> 0:06:48.719 And then finally, if we round it out with a 0:06:48.760 --> 0:06:53.120 look at crypto, some clearly Donald Trump is in favor 0:06:53.240 --> 0:06:53.760 of crypto. 0:06:53.839 --> 0:06:54.839 Actually this is the VIC. 0:06:54.960 --> 0:06:58.400 So we do have the VIC signaling overall Caroline the 0:06:58.480 --> 0:07:02.480 idea of risk off rising, and that's what crypto would 0:07:02.480 --> 0:07:05.240 signal too. It's down about three percent on the day. 0:07:05.320 --> 0:07:07.760 If you look at crypto is another way of looking 0:07:07.800 --> 0:07:10.360 at as a tell on risk on risk off. It's 0:07:10.400 --> 0:07:15.560 being down confirms the VIX and stocks down confirms a 0:07:15.600 --> 0:07:18.440 six the VIC higher and stocks down that investors are 0:07:18.480 --> 0:07:21.480 a little bit uncertain, but overall, the debate right now 0:07:22.120 --> 0:07:24.560 signals that investors are a little bit more favorable. I 0:07:24.560 --> 0:07:28.840 would argue toward VP Herris and that uncertainty into November 0:07:28.960 --> 0:07:29.760 while it's rising. 0:07:30.160 --> 0:07:32.600 Abigail Dodittle with a wrap up, We thank you. 0:07:32.960 --> 0:07:35.520 There's also, of course, the macro picture at play with 0:07:35.600 --> 0:07:38.280 inflation print today and a risk off tone. Let's dig 0:07:38.320 --> 0:07:40.520 in with Cerah Malic, head of Equities and fixing. Come at, 0:07:40.600 --> 0:07:43.360 Chief investment officer ever atte Neuven. So great to have 0:07:43.400 --> 0:07:44.000 you in the studio. 0:07:44.120 --> 0:07:45.040 Yeah, thanks for having me. 0:07:45.200 --> 0:07:50.920 I mean, when one factors in political concerns or lead 0:07:51.080 --> 0:07:54.200 at least uncertainty, and then you have the uncertainty of 0:07:54.200 --> 0:07:55.800 what inflation is doing, what the Fed's going to do, 0:07:55.840 --> 0:07:57.280 how do you measure up those risks? 0:07:57.440 --> 0:07:59.720 I think, yeah, there's three factors driving the markets right 0:07:59.760 --> 0:08:02.400 now versus seasonality. Second, of course is the election and 0:08:02.440 --> 0:08:05.280 then the economy. So second half of September for the 0:08:05.320 --> 0:08:07.360 past four years in a row on on average, tends 0:08:07.400 --> 0:08:09.640 to be the worst period for the markets for the year. 0:08:09.720 --> 0:08:11.920 So we're just approaching that and look where we already are. 0:08:12.440 --> 0:08:16.120 The election I think creating some uncertainty, mostly around expiration 0:08:16.200 --> 0:08:17.960 of tax cuts and What will that mean in terms 0:08:17.960 --> 0:08:20.800 of inflation? Could cost up to four points six trillion 0:08:20.840 --> 0:08:23.600 to renew those for whichever candidate wins the election. But 0:08:23.640 --> 0:08:26.440 I think the real main event is the economy. Inflation 0:08:26.560 --> 0:08:30.040 coming out today higher than expected. With CPI driven by shelter. 0:08:30.160 --> 0:08:33.120 People are worried that the economy is slowing, and inflation 0:08:33.240 --> 0:08:35.720 isn't slowing fast enough. It holds the FED back. I 0:08:35.720 --> 0:08:37.840 think we get twenty five basis points this month for 0:08:37.920 --> 0:08:39.840 a cut, and then we may have a slow start 0:08:39.880 --> 0:08:42.600 to FED cuts if inflation remains sticky, and that is 0:08:42.640 --> 0:08:46.480 concerning because economic data is slowly moving to the downside. 0:08:46.559 --> 0:08:49.600 What does that mean there for around one's portfolio diversification 0:08:49.720 --> 0:08:52.880 key but people have been putting so much money into 0:08:53.080 --> 0:08:56.240 seven key names when it comes to technology, does tech 0:08:56.240 --> 0:08:57.239 continue to outperform? 0:08:57.760 --> 0:09:00.480 I think tech will outperform as rate cuts six. We 0:09:00.480 --> 0:09:04.520 can break down tech into three buckets semiconductors, software and megacaps. 0:09:04.520 --> 0:09:06.400 So software has been the laggard year today. That's where 0:09:06.440 --> 0:09:08.959 we're most interested. We think there's some attractive names there. 0:09:09.080 --> 0:09:12.880 It's under owned by portfolio managers, market leading companies like 0:09:12.920 --> 0:09:16.760 Microsoft and Salesforce. Salesforce in particular looks kind of cheap 0:09:16.760 --> 0:09:19.400 on evaluation basis, people could as rate cuts happen, could 0:09:19.400 --> 0:09:23.080 start spending more on their products. Semiconductors probably a little 0:09:23.080 --> 0:09:26.120 more downside to go and a typical downturn that segment 0:09:26.160 --> 0:09:28.720 goes down thirty to forty percent. We are not there yet, 0:09:28.760 --> 0:09:31.240 so I think semis as we approach twenty twenty five, 0:09:31.280 --> 0:09:33.920 we could see an inflection point as twenty twenty five 0:09:34.200 --> 0:09:37.080 could be when people start a replacement cycle post COVID 0:09:37.440 --> 0:09:39.680 and then megacap you need to be selective. We have 0:09:39.800 --> 0:09:43.720 Meta and Nvidia dominating returns this year. I think people 0:09:43.760 --> 0:09:47.400 are waiting to see monetization of artificial intelligence for some 0:09:47.440 --> 0:09:50.360 of those companies return on investment, So megacap you need 0:09:50.400 --> 0:09:53.280 to be selective. A company we like is Apple, where 0:09:53.559 --> 0:09:55.400 it's a low cap X play for them to get 0:09:55.440 --> 0:09:58.560 AI into their phones. That iPhone replacement cycle is slowly 0:09:58.600 --> 0:10:00.640 starting this year we'll pick up next year. Is more 0:10:00.679 --> 0:10:03.240 AIS into those phones. I think Apple is the attractive 0:10:03.240 --> 0:10:04.040 play in megacap. 0:10:05.040 --> 0:10:08.480 Sarah, do those themes you've outlined continue through the second 0:10:08.559 --> 0:10:12.560 half of the year into next year irrespective of the 0:10:12.600 --> 0:10:15.640 outcome of the election. I'm particularly thinking about the megacaps 0:10:15.800 --> 0:10:18.000 and your commentary on the chip sector, I. 0:10:17.920 --> 0:10:20.520 Think, well, first of all, on a macro basis, inflation 0:10:20.679 --> 0:10:23.679 and the economy will continue to be themes throughout this year. 0:10:23.960 --> 0:10:27.000 I think for semiconductors, you know, the biggest stuff reason 0:10:27.040 --> 0:10:30.320 for them to inflect will be a replacement cycle. For 0:10:30.400 --> 0:10:33.800 the socks, you know, whether we're manufacturing and global supply 0:10:33.920 --> 0:10:36.839 chains onshoreing versus offshoreing could be someone of a bigger 0:10:36.880 --> 0:10:39.839 issue depending on which candidate wins. Software, I think is 0:10:39.880 --> 0:10:42.160 more of a rate play, and as companies start to 0:10:42.200 --> 0:10:45.440 spend more on software and the stocks evaluation. So I 0:10:45.440 --> 0:10:48.520 think mostly it's the fundamentals is stay intact and which 0:10:48.559 --> 0:10:51.160 candidate wins the election doesn't have a huge impact on them, 0:10:51.280 --> 0:10:53.440 but it could have somewhat because we also have to 0:10:53.440 --> 0:10:56.040 worry about regulations and the degree of regulations on some 0:10:56.120 --> 0:10:57.920 of these megacap companies. 0:10:58.840 --> 0:11:01.000 Sarah, I sat on my sofa for like everyone around 0:11:01.040 --> 0:11:04.160 the country, hoping that AI would come up in the debate. 0:11:04.280 --> 0:11:07.880 The question for markets is how much longer does this 0:11:07.960 --> 0:11:10.040 trend have to run? Listen to what Mike Wilson said 0:11:10.240 --> 0:11:12.839 on Bloomberg Television earlier today, we just. 0:11:12.760 --> 0:11:15.839 Got overcooked on the whole AI theme. Doesn't mean it's 0:11:15.880 --> 0:11:18.600 over We've written about this extensively, like we're not believers 0:11:18.600 --> 0:11:21.120 that this is going to change productivity materially in the 0:11:21.120 --> 0:11:21.600 short term. 0:11:21.600 --> 0:11:22.920 That's a long term story. 0:11:24.320 --> 0:11:26.360 And that's why I asked you about the election. Does 0:11:26.360 --> 0:11:29.520 it happen irrespective of the outcome, Do you agree that 0:11:29.559 --> 0:11:31.440 this AI trade's overcooked right now? 0:11:31.720 --> 0:11:34.839 Well, definitely became overcrowded from an investment point of view, 0:11:34.840 --> 0:11:38.800 and with any new structural change in the technology landscape 0:11:38.840 --> 0:11:41.439 like artificial intelligence, which I think is here to say, 0:11:41.559 --> 0:11:43.680 there's going to be fits and starts, and what people 0:11:43.760 --> 0:11:46.320 have been worrying about since the July tenth peak is 0:11:46.360 --> 0:11:49.320 where is the where are the signs of monetization and 0:11:49.360 --> 0:11:51.760 what is the return on investment on this tens of 0:11:51.760 --> 0:11:54.920 billions of AI investments that technology companies have made and 0:11:54.960 --> 0:11:57.720 that companies are making in order to improve their revenue 0:11:57.720 --> 0:12:00.960 growth and improve their efficiencies and productivity. That's what we're 0:12:01.000 --> 0:12:02.520 not seeing yet. So I think we are in a 0:12:02.520 --> 0:12:04.760 bit of a plateau or a pause for this stocks, 0:12:05.040 --> 0:12:08.000 for these stocks until we start to see more clear 0:12:08.080 --> 0:12:10.400 signs of what it really means. In the impact on businesses. 0:12:10.800 --> 0:12:14.560 Not surprisingly, consumer technology companies are seeing positive impacts from 0:12:14.840 --> 0:12:18.960 AI meta with its targeting ads on Facebook, on Instagram, 0:12:19.280 --> 0:12:23.320 and also Amazon, which is targeting what people more efficiently 0:12:23.320 --> 0:12:26.400 should be buying. But in other areas like manufacturing companies, 0:12:26.400 --> 0:12:28.360 we're not seeing the yield increases yet. And I think 0:12:28.480 --> 0:12:31.040 that's the other nontech areas of the economies where we 0:12:31.080 --> 0:12:34.199 want to see that impact of artificial intelligence c matic. 0:12:34.400 --> 0:12:36.760 So good to have you here from van We appreciate 0:12:36.840 --> 0:12:39.679 it coming up, so it mentions Amazon we get to 0:12:39.679 --> 0:12:42.800 dig in as it continues to expand its cloud business 0:12:43.040 --> 0:12:44.120 in the United Kingdom. 0:12:44.320 --> 0:12:45.160 Well details next. 0:12:45.200 --> 0:12:50.280 This is pretty big technology. 0:12:56.160 --> 0:12:59.200 Amazon says it would spend ten point five billion dollars 0:12:59.240 --> 0:13:01.680 in the UK to grow its cloud business, adding to 0:13:01.679 --> 0:13:04.800 a string of recent expansion moves in Europe and giving 0:13:04.840 --> 0:13:08.800 Britain's new labor government a welcome investment boost. Bloomberg's Matt Day, 0:13:08.800 --> 0:13:11.960 who covers Amazon, joins US now from Seattle, and Matt, 0:13:12.000 --> 0:13:13.720 you and I have covered many of these deals, right. 0:13:13.760 --> 0:13:17.800 I think about Virginia where AWS in particular pledges. I 0:13:17.800 --> 0:13:21.000 think it's thirty five billion through twenty forty, but it's 0:13:21.040 --> 0:13:25.480 still a significant bet on Amazon's footprint in the United Kingdom. 0:13:25.880 --> 0:13:27.480 Yeah, it is, and it's about in line with what 0:13:27.480 --> 0:13:29.400 they should be spending there. You look at the UK 0:13:29.520 --> 0:13:32.440 chunk of sales for Amazon. This probably makes sense within 0:13:32.480 --> 0:13:34.640 the context of Amazon's capex because they are spending just 0:13:34.640 --> 0:13:36.319 a ton on data centers, as you mentioned. 0:13:36.400 --> 0:13:37.520 You know, this year alone, we've had. 0:13:37.480 --> 0:13:41.280 Announcements in Saudi Arabia, Mexico, in Europe and Germany and 0:13:41.280 --> 0:13:43.600 in Spain and now United Kingdom, just a kind of 0:13:43.600 --> 0:13:45.760 a full force of a wusay whe they're going to 0:13:45.760 --> 0:13:48.520 stay relevant the cloud market by expanding more than anybody else. 0:13:48.840 --> 0:13:52.120 Yeah, give us context to the race here, the need 0:13:52.240 --> 0:13:53.880 for compute to satisfy demand. 0:13:55.080 --> 0:13:56.959 So it's at least two separate things. One is sort 0:13:56.960 --> 0:13:58.800 of the ongoing move to the cloud. Company has on 0:13:58.960 --> 0:14:01.720 plugging their data centers favor of rented computing power. You know, 0:14:01.760 --> 0:14:05.120 that's Amazon, that's Microsoft, that's Google. You've also had this 0:14:05.240 --> 0:14:07.920 AI cocktail thrown in there, where folks have just had 0:14:07.920 --> 0:14:09.960 to ramp up their budgets to afford these pricey chips, 0:14:10.000 --> 0:14:10.559 to afford the. 0:14:10.480 --> 0:14:11.560 Cooling that makes them happen. 0:14:11.920 --> 0:14:13.600 And then just on top of that, you know, power 0:14:13.679 --> 0:14:15.760 is scarce just about everywhere you look. So it's a 0:14:15.760 --> 0:14:18.400 real kind of land grab on of big cloud companies 0:14:18.440 --> 0:14:20.880 to build new campuses, to expand kind of as quick 0:14:20.920 --> 0:14:22.880 as they can to meet this new emerging command. 0:14:24.160 --> 0:14:26.840 Matt, Caroline and I will spare you from the UK 0:14:26.960 --> 0:14:31.480 political component of this story, although the Chancellor of the 0:14:32.000 --> 0:14:34.960 Checker Racial reas rating no time to kind of point 0:14:34.960 --> 0:14:39.760 out this is a big win for UK PLC. The 0:14:39.840 --> 0:14:43.280 business is interesting. Every time we talk about Amazon awsis 0:14:43.280 --> 0:14:45.760 footprint in Europe on this program, I know that quite 0:14:45.760 --> 0:14:48.480 a lot of Amazon staff will engage on LinkedIn. There's 0:14:48.520 --> 0:14:50.920 a lot of them there. But how does it compare 0:14:51.200 --> 0:14:53.600 to their presence in North America and elsewhere. 0:14:54.800 --> 0:14:57.520 Well, their biggest hubs are in North America, right, that's 0:14:57.560 --> 0:14:59.800 where the majority of their data center investment over time 0:14:59.800 --> 0:15:02.080 has then, you know, but they are going more international 0:15:02.120 --> 0:15:04.520 and they are going into sort of smaller and smaller markets. 0:15:04.560 --> 0:15:06.320 If you roll back the clock many years, you know, 0:15:06.320 --> 0:15:08.000 it used to be they invested in kind of big 0:15:08.040 --> 0:15:10.800 centralized data center locations. I believe that was outside of 0:15:10.880 --> 0:15:13.800 Paris in the EU, and then slowly over time they've 0:15:13.840 --> 0:15:15.600 kind of gone down and said, you know, listen, not 0:15:15.640 --> 0:15:17.920 only do we need points of presence in in local markets, 0:15:17.920 --> 0:15:19.920 but we need to spend you know, billions of dollars 0:15:19.960 --> 0:15:23.080 in local markets to take advantage of the opportunities there 0:15:23.080 --> 0:15:24.440 to be close to just the big corporates who are 0:15:24.480 --> 0:15:25.440 demanding cloud computing. 0:15:25.640 --> 0:15:29.080 What about taking advantage of benefits at certain government's offer. 0:15:29.480 --> 0:15:31.960 Is that part of the game, you know? 0:15:32.040 --> 0:15:32.320 It is? 0:15:32.640 --> 0:15:34.840 You know, I think Amazon, you know, certainly wants any 0:15:34.880 --> 0:15:37.640 incentives that are on offer or wherever they go. But 0:15:37.680 --> 0:15:40.040 I'm not sure it's it's necessarily the driving force. If 0:15:40.080 --> 0:15:42.160 you listen to Amazon's critics, you know, they will say, listen, 0:15:42.160 --> 0:15:44.320 if you map their data centers, it just maps out. 0:15:44.160 --> 0:15:45.240 To where their customers are. 0:15:45.320 --> 0:15:47.840 Right So certainly policy would play a role. I'm just 0:15:47.920 --> 0:15:50.120 not sure the market thinks it's a very big one. 0:15:50.280 --> 0:16:00.120 Matt Day, great to have the expertise, thank you. In 0:16:00.160 --> 0:16:02.840 today's AI and Action, we are taking a look at Corti. 0:16:02.880 --> 0:16:06.160 It's a global AI engine designed for healthcare with AI 0:16:06.320 --> 0:16:08.920 that not only takes practitioner notes, but it helps with 0:16:09.000 --> 0:16:12.440 quality assurance of journals with prompts and helps document every 0:16:12.520 --> 0:16:15.720 patient interaction. And the company just announced the higher form 0:16:15.720 --> 0:16:18.480 of Microsoft and Phillips executives to help me the company's 0:16:18.520 --> 0:16:22.200 expansion here in the United States. Courty CEO Andreas Cleve 0:16:22.320 --> 0:16:25.359 joins US. Now, why is the US such a focus. 0:16:27.200 --> 0:16:29.560 It's the most important healthcare market in the world. It's 0:16:29.760 --> 0:16:32.960 where I myself live and I'm a patient, and it's 0:16:33.000 --> 0:16:35.680 a place we feel very excited to work in as 0:16:35.720 --> 0:16:38.200 some of the best providers and pairs are there and 0:16:38.280 --> 0:16:40.800 I think they'll be the cornerstone of building the most 0:16:40.840 --> 0:16:42.200 important solutions for healthcare. 0:16:42.640 --> 0:16:46.280 What do you offer those practitioners, those experts, Because we're 0:16:46.280 --> 0:16:49.160 all trying to find out what the return on AI 0:16:49.240 --> 0:16:52.480 investment is, what do you offer healthcare practicingers. 0:16:53.560 --> 0:16:58.560 Actual time back? And that's a promise that's been promised 0:16:58.760 --> 0:17:01.480 a lot of times having been here for a while, 0:17:01.520 --> 0:17:04.399 so we were founded as a research company back in 0:17:04.400 --> 0:17:07.680 twenty sixteen to prove we could research and find ways 0:17:07.680 --> 0:17:10.120 of delivering safe and trustworthy AI. 0:17:10.640 --> 0:17:13.160 And that's exactly what we give today to providers. 0:17:13.240 --> 0:17:15.720 We have a solution you can build into whatever tool 0:17:15.760 --> 0:17:18.560 or application you use, and here are are Real time 0:17:18.600 --> 0:17:21.520 AI actually helps deliver on some of these promises by 0:17:21.560 --> 0:17:25.000 doing medical coding. We do summaris we do documentation and 0:17:25.040 --> 0:17:26.600 in the end help them carve back some of that 0:17:26.680 --> 0:17:27.960 time loss to administration. 0:17:29.400 --> 0:17:32.320 Andreas a startup founded in twenty sixteen, is a little 0:17:32.320 --> 0:17:35.399 bit refreshing. Actually, there have been many new companies formed 0:17:35.440 --> 0:17:38.439 in the last two years in this area. So in 0:17:38.440 --> 0:17:41.840 that time you built up data one hundred million customer interactions. 0:17:42.080 --> 0:17:46.240 What's the benefit that the health system gets from those interactions? Now? 0:17:47.720 --> 0:17:50.920 Yeah, Yeah, I am excited as an entrepreneur to see 0:17:50.920 --> 0:17:54.840 so much AI being adopted, but I am still astounded 0:17:54.840 --> 0:17:57.119 by the amount of AI that's being deployed in healthcare 0:17:57.160 --> 0:18:00.520 today that isn't built for healthcare. We see a lot 0:18:00.520 --> 0:18:03.280 of model today who are as good as doing haiku 0:18:03.440 --> 0:18:06.400 or finding a great kitchen recipe as they are at 0:18:06.840 --> 0:18:11.040 doing healthcare AI. And what we're offering is obviously an 0:18:11.080 --> 0:18:13.600 AI that solely built for healthcare. We have been here 0:18:13.600 --> 0:18:16.399 for a while researching on this, publishing on this, and 0:18:16.480 --> 0:18:18.359 partnering with some of the best providers to build an 0:18:18.359 --> 0:18:21.600 AI that is only tuned to one thing, and that 0:18:21.720 --> 0:18:25.359 is listen to healthcare providers and pairs and actually deliver 0:18:26.080 --> 0:18:28.560 automations and augmentations that really work. 0:18:30.520 --> 0:18:37.199 The difficulty in this country is insurance and established healthcare systems. 0:18:37.520 --> 0:18:39.040 Have you been able to navigate that? 0:18:41.840 --> 0:18:43.560 I think the way we think about it a lot 0:18:43.640 --> 0:18:46.000 is to ensure that we don't just come with yet 0:18:46.080 --> 0:18:48.719 another application. So what we want to come with is 0:18:48.840 --> 0:18:51.520 a technology that you build into whatever you use already 0:18:51.520 --> 0:18:54.560 today and that can be used both by payers and providers. 0:18:54.600 --> 0:18:57.200 So today we're lucky that more than one hundred thousand 0:18:57.200 --> 0:18:59.960 patient interactions are flowing through Cordy across all fifty state 0:19:00.160 --> 0:19:03.280 in the US. And ultimately I just heard this from 0:19:03.280 --> 0:19:06.320 a doctor the other day. It actually helps them ensure 0:19:06.400 --> 0:19:08.920 that they are more on point also and handing over 0:19:09.000 --> 0:19:12.359 patients data or documentation between let's say a peer and provider. 0:19:12.960 --> 0:19:15.960 Let's exactly talk about patient data. There's a lot of 0:19:15.960 --> 0:19:18.800 anxiety about it running through various people's hands. 0:19:19.080 --> 0:19:21.440 Andreas, how are you ensuring the security? 0:19:23.359 --> 0:19:26.639 So we are originally a company from Denmark and the 0:19:26.760 --> 0:19:30.520 Cold North in Scandinavia in Europe, so in our DNA 0:19:30.680 --> 0:19:33.680 is compliance, we are from the most regulated part of 0:19:34.160 --> 0:19:36.800