Speaker 1: From Marhart were Innovation, Money and Power Collie in Silicon
Speaker 1: Valley NBN. This is Bloomberg Technology with Caroline Hyde and
Speaker 1: Ed Loved Love.
Speaker 2: Lie from New York and San Francisco. This is Bloomberg
Speaker 2: Technology coming up. Pamela Harris and Donald Trump squaring off
Speaker 2: in their first presidential debate.
Speaker 3: We talked the tech angles and.
Speaker 4: The crypto sector, nursing declines as betting markets reveal new
Speaker 4: momentum for the vice president. Markets react to the debate.
Speaker 2: And Amazon that's big on Britain looking to expand its
Speaker 2: cloud business with a ten point four billion dollar UK
Speaker 2: investment plan. The first is market sink. Let's get straight
Speaker 2: to the first US president debate that saw former President
Speaker 2: Trump and Vice President Kamala Harris trading on the handling
Speaker 2: of America's semiconductor industry and the feature of AI.
Speaker 5: Well, let's be clear that the Trump administration resulted in
Speaker 5: a trade deficit, one of the highest we've ever seen
Speaker 5: in the history of America. He invited trade wars. You
Speaker 5: want to talk about his deal with China. What he
Speaker 5: ended up doing is under Donald Trump's presidency, he ended
Speaker 5: up selling American chips to China to help them improve
Speaker 5: and modernize their military.
Speaker 6: First of all, they bought their chips from Taiwan. We
Speaker 6: hardly make chips anymore because of philosophies like they have
Speaker 6: and policies like they have. I don't say her because
Speaker 6: she has no policy. Everything that she believed three years
Speaker 6: ago and four years ago is out the window. She's
Speaker 6: going to my philosophy now.
Speaker 7: In fact, I was going to send her a mega hat.
Speaker 2: Blomberg's David Gura is in Philadelphia. You were there for
Speaker 2: the live action, David, We focus on the tech angle.
Speaker 3: But what did you draw from the debate?
Speaker 7: Well, welcome back to what you just played there.
Speaker 1: I mean, I think that was a more robust exchange
Speaker 1: on policy than we saw many of the topics that
Speaker 1: were covered during the course of that debate. So there
Speaker 1: were questions about former President Trump's tariff's policy, and of
Speaker 1: course He's doubled down saying that he's going to impose
Speaker 1: more blanket tariffs, not just on China, but on Mexico
Speaker 1: as well other countries. So I thought that that was
Speaker 1: kind of an illuminating moment and something that Vice President
Speaker 1: Harris then spoke about afterward were the investments that the
Speaker 1: Biden administration has made in trying to boost semiconductor production
Speaker 1: here in the United States during this administration, and also
Speaker 1: noting the fact that when you look at tariffs and
Speaker 1: tariffs have been levied on China when it comes to semiconductors,
Speaker 1: in fact, it has been the Biden Harris administration that
Speaker 1: has elevated them even more so. Look, this was more
Speaker 1: than ninety minutes long. It went longer than we thought
Speaker 1: it would go. Was there's little policy at the beginning,
Speaker 1: but we saw diversions from that pretty quickly, and I think,
Speaker 1: you know, to the gree to which economics was discussed.
Speaker 1: Trade was one moment again where I thought there was
Speaker 1: at least some spirited back and forth between these two
Speaker 1: candidates getting to subsubstance on that issue.
Speaker 4: Guys Harris kept in line with the administration's policy that
Speaker 4: everything to do with chips from a restriction standpoint is
Speaker 4: in the interest in national security. And then Trump went
Speaker 4: after the track record right what they did or didn't
Speaker 4: do over the last four years. It's hard to see
Speaker 4: where an aggregate we've landed. David, you know, look at
Speaker 4: social media and the reporting on the Bloomberg terminal. What
Speaker 4: is the net result of that debate last night.
Speaker 1: Well, I go back to what I heard from Governor
Speaker 1: Gavin Newsom of California before this debate. I said, how
Speaker 1: pivotal is and how important is it? What difference could
Speaker 1: this make? And he said, think of it like World
Speaker 1: War One, where it's going to be something determined by inches,
Speaker 1: not anything more than that. This is such an incredibly
Speaker 1: close race between these two candidates, it would be folly
Speaker 1: to think that a good performance in that debate would
Speaker 1: have a sizable impact in raising a candidates stature in
Speaker 1: the polls. Conversely, if there were a bad performance, that
Speaker 1: would have a negati effect, dramatically negative effect on those
Speaker 1: polls as well. I think you're right. I mean, you
Speaker 1: look ahead here. We've got fewer than sixty days until
Speaker 1: this election. Both of these candidates, I think rightly recognize
Speaker 1: this is going to be a very hard fought campaign
Speaker 1: and one that's going to be decided fundamentally by just
Speaker 1: a few thousand voters. And it's rather extraordinary to say
Speaker 1: when you look at the whole population of this country
Speaker 1: and the voting electorate. We talk about swing states, it's
Speaker 1: more granular than that. Of course, you all know that
Speaker 1: as well. We're talking about districts in particular. So I
Speaker 1: think what we're going to see is in effort to
Speaker 1: capitalize and whatever ment in these candidates got last night,
Speaker 1: carry that onto the campaign trail. Vice President Harris going
Speaker 1: down to North Carolina tomorrow, then back up to Pennsylvania,
Speaker 1: those two swing states over the course of this week.
Speaker 1: Donald Trump making the pilgrimage out to California for a
Speaker 1: press conference at the end of the week, when in
Speaker 1: Nevada and Arizona as well. So they're going to be
Speaker 1: back on the trail here, trying to talk their book,
Speaker 1: trying to do all they can to woo those undecided
Speaker 1: voters again a very small sliver of the US electorate.
Speaker 4: And of those voters, Taylor Swift now coming out endorsing
Speaker 4: Kamala Harris, which we'll get to in more detail later
Speaker 4: in the program. David Gourr on the ground, Thank you
Speaker 4: very much. Let's continue with the CKS reaction to last
Speaker 4: night's debate. Bluebogs abail do a little with us, and
Speaker 4: I think this is cross asset. What are you seeing?
Speaker 8: It is certainly cross asset, and it's interesting right now,
Speaker 8: stocks down broadly, the S and P five hundred and
Speaker 8: the nasack down more than one percent. I think that
Speaker 8: has less to do with the debate and has more
Speaker 8: to do with other factors of uncertainty. Relative to the
Speaker 8: reaction to the debate, I would say right now, DJT
Speaker 8: is one of the better signals in terms of what
Speaker 8: investors saw, with the stockdown about fifteen percent, the worst
Speaker 8: day since April.
Speaker 4: So I would say this is.
Speaker 8: Clearly a vote away from the Trump trade, if you will,
Speaker 8: and one way that the markets are backing VP Kamala Harris.
Speaker 8: In fact, if we take a look at the betting odds,
Speaker 8: just yesterday, both candidates had been at fifty two percent
Speaker 8: a piece. This after former President Donald Trump, right when
Speaker 8: Kamala Harris got into the race, led her by let's
Speaker 8: call it twenty percent. She then led Donald Trump by
Speaker 8: about twelve to fifteen percent. But again yesterday, going into
Speaker 8: that debate, fifty two percent a piece, the spread five
Speaker 8: to seven percent apart in favor of VP Harris. So
Speaker 8: this is another way markets are telling you that they
Speaker 8: thought that Kamala Harris's performance was at least stronger, and
Speaker 8: or do they think that she will in fact be
Speaker 8: elected in November. In fact, if we dig in just
Speaker 8: a little bit deeper and we take a look at
Speaker 8: what could be a Harris trade, which would be green energy,
Speaker 8: it would be healthcare that goes toward Medicare Medicaid along
Speaker 8: with the home builders. It's interesting that's one area that
Speaker 8: is actually not favoring her right now. One of her
Speaker 8: policies for the best that we know is a twenty
Speaker 8: five thousand dollars tax credit excuse me, down payment for
Speaker 8: first time homebuilders. Some of the homebuilders that are geared
Speaker 8: toward those early homebuilders or home buyers, they are down today,
Speaker 8: but those.
Speaker 3: Other areas are higher.
Speaker 8: And then finally, if we round it out with a
Speaker 8: look at crypto, some clearly Donald Trump is in favor
Speaker 8: of crypto.
Speaker 3: Actually this is the VIC.
Speaker 8: So we do have the VIC signaling overall Caroline the
Speaker 8: idea of risk off rising, and that's what crypto would
Speaker 8: signal too. It's down about three percent on the day.
Speaker 8: If you look at crypto is another way of looking
Speaker 8: at as a tell on risk on risk off. It's
Speaker 8: being down confirms the VIX and stocks down confirms a
Speaker 8: six the VIC higher and stocks down that investors are
Speaker 8: a little bit uncertain, but overall, the debate right now
Speaker 8: signals that investors are a little bit more favorable. I
Speaker 8: would argue toward VP Herris and that uncertainty into November
Speaker 8: while it's rising.
Speaker 3: Abigail Dodittle with a wrap up, We thank you.
Speaker 2: There's also, of course, the macro picture at play with
Speaker 2: inflation print today and a risk off tone. Let's dig
Speaker 2: in with Cerah Malic, head of Equities and fixing. Come at,
Speaker 2: Chief investment officer ever atte Neuven. So great to have
Speaker 2: you in the studio.
Speaker 3: Yeah, thanks for having me.
Speaker 2: I mean, when one factors in political concerns or lead
Speaker 2: at least uncertainty, and then you have the uncertainty of
Speaker 2: what inflation is doing, what the Fed's going to do,
Speaker 2: how do you measure up those risks?
Speaker 9: I think, yeah, there's three factors driving the markets right
Speaker 9: now versus seasonality. Second, of course is the election and
Speaker 9: then the economy. So second half of September for the
Speaker 9: past four years in a row on on average, tends
Speaker 9: to be the worst period for the markets for the year.
Speaker 9: So we're just approaching that and look where we already are.
Speaker 9: The election I think creating some uncertainty, mostly around expiration
Speaker 9: of tax cuts and What will that mean in terms
Speaker 9: of inflation? Could cost up to four points six trillion
Speaker 9: to renew those for whichever candidate wins the election. But
Speaker 9: I think the real main event is the economy. Inflation
Speaker 9: coming out today higher than expected. With CPI driven by shelter.
Speaker 9: People are worried that the economy is slowing, and inflation
Speaker 9: isn't slowing fast enough. It holds the FED back. I
Speaker 9: think we get twenty five basis points this month for
Speaker 9: a cut, and then we may have a slow start
Speaker 9: to FED cuts if inflation remains sticky, and that is
Speaker 9: concerning because economic data is slowly moving to the downside.
Speaker 2: What does that mean there for around one's portfolio diversification
Speaker 2: key but people have been putting so much money into
Speaker 2: seven key names when it comes to technology, does tech
Speaker 2: continue to outperform?
Speaker 9: I think tech will outperform as rate cuts six. We
Speaker 9: can break down tech into three buckets semiconductors, software and megacaps.
Speaker 9: So software has been the laggard year today. That's where
Speaker 9: we're most interested. We think there's some attractive names there.
Speaker 9: It's under owned by portfolio managers, market leading companies like
Speaker 9: Microsoft and Salesforce. Salesforce in particular looks kind of cheap
Speaker 9: on evaluation basis, people could as rate cuts happen, could
Speaker 9: start spending more on their products. Semiconductors probably a little
Speaker 9: more downside to go and a typical downturn that segment
Speaker 9: goes down thirty to forty percent. We are not there yet,
Speaker 9: so I think semis as we approach twenty twenty five,
Speaker 9: we could see an inflection point as twenty twenty five
Speaker 9: could be when people start a replacement cycle post COVID
Speaker 9: and then megacap you need to be selective. We have
Speaker 9: Meta and Nvidia dominating returns this year. I think people
Speaker 9: are waiting to see monetization of artificial intelligence for some
Speaker 9: of those companies return on investment, So megacap you need
Speaker 9: to be selective. A company we like is Apple, where
Speaker 9: it's a low cap X play for them to get
Speaker 9: AI into their phones. That iPhone replacement cycle is slowly
Speaker 9: starting this year we'll pick up next year. Is more
Speaker 9: AIS into those phones. I think Apple is the attractive
Speaker 9: play in megacap.
Speaker 4: Sarah, do those themes you've outlined continue through the second
Speaker 4: half of the year into next year irrespective of the
Speaker 4: outcome of the election. I'm particularly thinking about the megacaps
Speaker 4: and your commentary on the chip sector, I.
Speaker 9: Think, well, first of all, on a macro basis, inflation
Speaker 9: and the economy will continue to be themes throughout this year.
Speaker 9: I think for semiconductors, you know, the biggest stuff reason
Speaker 9: for them to inflect will be a replacement cycle. For
Speaker 9: the socks, you know, whether we're manufacturing and global supply
Speaker 9: chains onshoreing versus offshoreing could be someone of a bigger
Speaker 9: issue depending on which candidate wins. Software, I think is
Speaker 9: more of a rate play, and as companies start to
Speaker 9: spend more on software and the stocks evaluation. So I
Speaker 9: think mostly it's the fundamentals is stay intact and which
Speaker 9: candidate wins the election doesn't have a huge impact on them,
Speaker 9: but it could have somewhat because we also have to
Speaker 9: worry about regulations and the degree of regulations on some
Speaker 9: of these megacap companies.
Speaker 4: Sarah, I sat on my sofa for like everyone around
Speaker 4: the country, hoping that AI would come up in the debate.
Speaker 4: The question for markets is how much longer does this
Speaker 4: trend have to run? Listen to what Mike Wilson said
Speaker 4: on Bloomberg Television earlier today, we just.
Speaker 10: Got overcooked on the whole AI theme. Doesn't mean it's
Speaker 10: over We've written about this extensively, like we're not believers
Speaker 10: that this is going to change productivity materially in the
Speaker 10: short term.
Speaker 7: That's a long term story.
Speaker 4: And that's why I asked you about the election. Does
Speaker 4: it happen irrespective of the outcome, Do you agree that
Speaker 4: this AI trade's overcooked right now?
Speaker 9: Well, definitely became overcrowded from an investment point of view,
Speaker 9: and with any new structural change in the technology landscape
Speaker 9: like artificial intelligence, which I think is here to say,
Speaker 9: there's going to be fits and starts, and what people
Speaker 9: have been worrying about since the July tenth peak is
Speaker 9: where is the where are the signs of monetization and
Speaker 9: what is the return on investment on this tens of
Speaker 9: billions of AI investments that technology companies have made and
Speaker 9: that companies are making in order to improve their revenue
Speaker 9: growth and improve their efficiencies and productivity. That's what we're
Speaker 9: not seeing yet. So I think we are in a
Speaker 9: bit of a plateau or a pause for this stocks,
Speaker 9: for these stocks until we start to see more clear
Speaker 9: signs of what it really means. In the impact on businesses.
Speaker 9: Not surprisingly, consumer technology companies are seeing positive impacts from
Speaker 9: AI meta with its targeting ads on Facebook, on Instagram,
Speaker 9: and also Amazon, which is targeting what people more efficiently
Speaker 9: should be buying. But in other areas like manufacturing companies,
Speaker 9: we're not seeing the yield increases yet. And I think
Speaker 9: that's the other nontech areas of the economies where we
Speaker 9: want to see that impact of artificial intelligence c matic.
Speaker 2: So good to have you here from van We appreciate
Speaker 2: it coming up, so it mentions Amazon we get to
Speaker 2: dig in as it continues to expand its cloud business
Speaker 2: in the United Kingdom.
Speaker 3: Well details next.
Speaker 2: This is pretty big technology.
Speaker 4: Amazon says it would spend ten point five billion dollars
Speaker 4: in the UK to grow its cloud business, adding to
Speaker 4: a string of recent expansion moves in Europe and giving
Speaker 4: Britain's new labor government a welcome investment boost. Bloomberg's Matt Day,
Speaker 4: who covers Amazon, joins US now from Seattle, and Matt,
Speaker 4: you and I have covered many of these deals, right.
Speaker 4: I think about Virginia where AWS in particular pledges. I
Speaker 4: think it's thirty five billion through twenty forty, but it's
Speaker 4: still a significant bet on Amazon's footprint in the United Kingdom.
Speaker 10: Yeah, it is, and it's about in line with what
Speaker 10: they should be spending there. You look at the UK
Speaker 10: chunk of sales for Amazon. This probably makes sense within
Speaker 10: the context of Amazon's capex because they are spending just
Speaker 10: a ton on data centers, as you mentioned.
Speaker 4: You know, this year alone, we've had.
Speaker 10: Announcements in Saudi Arabia, Mexico, in Europe and Germany and
Speaker 10: in Spain and now United Kingdom, just a kind of
Speaker 10: a full force of a wusay whe they're going to
Speaker 10: stay relevant the cloud market by expanding more than anybody else.
Speaker 2: Yeah, give us context to the race here, the need
Speaker 2: for compute to satisfy demand.
Speaker 10: So it's at least two separate things. One is sort
Speaker 10: of the ongoing move to the cloud. Company has on
Speaker 10: plugging their data centers favor of rented computing power. You know,
Speaker 10: that's Amazon, that's Microsoft, that's Google. You've also had this
Speaker 10: AI cocktail thrown in there, where folks have just had
Speaker 10: to ramp up their budgets to afford these pricey chips,
Speaker 10: to afford the.
Speaker 4: Cooling that makes them happen.
Speaker 10: And then just on top of that, you know, power
Speaker 10: is scarce just about everywhere you look. So it's a
Speaker 10: real kind of land grab on of big cloud companies
Speaker 10: to build new campuses, to expand kind of as quick
Speaker 10: as they can to meet this new emerging command.
Speaker 4: Matt, Caroline and I will spare you from the UK
Speaker 4: political component of this story, although the Chancellor of the
Speaker 4: Checker Racial reas rating no time to kind of point
Speaker 4: out this is a big win for UK PLC. The
Speaker 4: business is interesting. Every time we talk about Amazon awsis
Speaker 4: footprint in Europe on this program, I know that quite
Speaker 4: a lot of Amazon staff will engage on LinkedIn. There's
Speaker 4: a lot of them there. But how does it compare
Speaker 4: to their presence in North America and elsewhere.
Speaker 10: Well, their biggest hubs are in North America, right, that's
Speaker 10: where the majority of their data center investment over time
Speaker 10: has then, you know, but they are going more international
Speaker 10: and they are going into sort of smaller and smaller markets.
Speaker 10: If you roll back the clock many years, you know,
Speaker 10: it used to be they invested in kind of big
Speaker 10: centralized data center locations. I believe that was outside of
Speaker 10: Paris in the EU, and then slowly over time they've
Speaker 10: kind of gone down and said, you know, listen, not
Speaker 10: only do we need points of presence in in local markets,
Speaker 10: but we need to spend you know, billions of dollars
Speaker 10: in local markets to take advantage of the opportunities there
Speaker 10: to be close to just the big corporates who are
Speaker 10: demanding cloud computing.
Speaker 2: What about taking advantage of benefits at certain government's offer.
Speaker 3: Is that part of the game, you know?
Speaker 11: It is?
Speaker 10: You know, I think Amazon, you know, certainly wants any
Speaker 10: incentives that are on offer or wherever they go. But
Speaker 10: I'm not sure it's it's necessarily the driving force. If
Speaker 10: you listen to Amazon's critics, you know, they will say, listen,
Speaker 10: if you map their data centers, it just maps out.
Speaker 4: To where their customers are.
Speaker 10: Right So certainly policy would play a role. I'm just
Speaker 10: not sure the market thinks it's a very big one.
Speaker 2: Matt Day, great to have the expertise, thank you. In
Speaker 2: today's AI and Action, we are taking a look at Corti.
Speaker 2: It's a global AI engine designed for healthcare with AI
Speaker 2: that not only takes practitioner notes, but it helps with
Speaker 2: quality assurance of journals with prompts and helps document every
Speaker 2: patient interaction. And the company just announced the higher form
Speaker 2: of Microsoft and Phillips executives to help me the company's
Speaker 2: expansion here in the United States. Courty CEO Andreas Cleve
Speaker 2: joins US. Now, why is the US such a focus.
Speaker 12: It's the most important healthcare market in the world. It's
Speaker 12: where I myself live and I'm a patient, and it's
Speaker 12: a place we feel very excited to work in as
Speaker 12: some of the best providers and pairs are there and
Speaker 12: I think they'll be the cornerstone of building the most
Speaker 12: important solutions for healthcare.
Speaker 2: What do you offer those practitioners, those experts, Because we're
Speaker 2: all trying to find out what the return on AI
Speaker 2: investment is, what do you offer healthcare practicingers.
Speaker 12: Actual time back? And that's a promise that's been promised
Speaker 12: a lot of times having been here for a while,
Speaker 12: so we were founded as a research company back in
Speaker 12: twenty sixteen to prove we could research and find ways
Speaker 12: of delivering safe and trustworthy AI.
Speaker 7: And that's exactly what we give today to providers.
Speaker 12: We have a solution you can build into whatever tool
Speaker 12: or application you use, and here are are Real time
Speaker 12: AI actually helps deliver on some of these promises by
Speaker 12: doing medical coding. We do summaris we do documentation and
Speaker 12: in the end help them carve back some of that
Speaker 12: time loss to administration.
Speaker 4: Andreas a startup founded in twenty sixteen, is a little
Speaker 4: bit refreshing. Actually, there have been many new companies formed
Speaker 4: in the last two years in this area. So in
Speaker 4: that time you built up data one hundred million customer interactions.
Speaker 4: What's the benefit that the health system gets from those interactions? Now?
Speaker 12: Yeah, Yeah, I am excited as an entrepreneur to see
Speaker 12: so much AI being adopted, but I am still astounded
Speaker 12: by the amount of AI that's being deployed in healthcare
Speaker 12: today that isn't built for healthcare. We see a lot
Speaker 12: of model today who are as good as doing haiku
Speaker 12: or finding a great kitchen recipe as they are at
Speaker 12: doing healthcare AI. And what we're offering is obviously an
Speaker 12: AI that solely built for healthcare. We have been here
Speaker 12: for a while researching on this, publishing on this, and
Speaker 12: partnering with some of the best providers to build an
Speaker 12: AI that is only tuned to one thing, and that
Speaker 12: is listen to healthcare providers and pairs and actually deliver
Speaker 12: automations and augmentations that really work.
Speaker 4: The difficulty in this country is insurance and established healthcare systems.
Speaker 4: Have you been able to navigate that?
Speaker 12: I think the way we think about it a lot
Speaker 12: is to ensure that we don't just come with yet
Speaker 12: another application. So what we want to come with is
Speaker 12: a technology that you build into whatever you use already
Speaker 12: today and that can be used both by payers and providers.
Speaker 12: So today we're lucky that more than one hundred thousand
Speaker 12: patient interactions are flowing through Cordy across all fifty state
Speaker 12: in the US. And ultimately I just heard this from
Speaker 12: a doctor the other day. It actually helps them ensure
Speaker 12: that they are more on point also and handing over
Speaker 12: patients data or documentation between let's say a peer and provider.
Speaker 2: Let's exactly talk about patient data. There's a lot of
Speaker 2: anxiety about it running through various people's hands.
Speaker 3: Andreas, how are you ensuring the security?
Speaker 12: So we are originally a company from Denmark and the
Speaker 12: Cold North in Scandinavia in Europe, so in our DNA
Speaker 12: is compliance, we are from the most regulated part of
Speaker 12: the global healthcare system and also known to be one
Speaker 12: of the best healthing systems, and we have been lucky
Speaker 12: enough to be partnering with the European Union and their
Speaker 12: legislative arm when they wrote the AI Act, and we've
Speaker 12: been lucky enough to work with them on GDPR, so
Speaker 12: into the engine of cority and all the technology we've built,
Speaker 12: compliance and data safety is among them. And that means
Speaker 12: that we are not taking data, we are not appropriating data,
Speaker 12: we're not misusing data. As we come from a market
Speaker 12: that's driven by patients, and those patients they give each
Speaker 12: other health care for free, and we really have an
Speaker 12: ethos of ensuring that patients come first, and that's I
Speaker 12: think very core to what we believe in andress.
Speaker 4: The most recent piece of news for you is all
Speaker 4: of the sort of top talent you've been hiring from
Speaker 4: both tech and healthcare. How difficult and how expensive was that.
Speaker 12: It's definitely been a big challenge. I think there's a
Speaker 12: lot of hype around AI startups, but I think we've
Speaker 12: been lucky to see some of the best talents in
Speaker 12: healthcare meeting customers providers, payers all the time who really
Speaker 12: want to get on this AAR journey, but they've maybe
Speaker 12: not yet found the provider that actually was trustworthy. So
Speaker 12: we've been lucky enough to show them that and Luckily,
Speaker 12: we keep hearing that from patients and providers who start
Speaker 12: using it that they actually see the outcomes they want.
Speaker 12: And I think that entices a lot of the sort
Speaker 12: of the titans of our industry to come and see.
Speaker 7: If it's real, and luckily.
Speaker 12: When they see it, they actually want to join.
Speaker 4: Cool to CEO, Andreas Cleve. Great to have you on
Speaker 4: the program. Thank you.
Speaker 2: Welcome back to Blue Meg Technology. I'm Karen Hider, New
Speaker 2: York and.
Speaker 4: I med lod Low in San Francisco.
Speaker 2: Check on these markets that have been under pressure post
Speaker 2: the CPI print, of course, ed Look, we've got a
Speaker 2: bit of risk aversion creeping into the markets. Were off
Speaker 2: of our lows, but still the nast that one hundred
Speaker 2: is dragged on by about nine.
Speaker 3: Tenths of a percent.
Speaker 2: We seem to see a slight move to the havens,
Speaker 2: that is, the bond market Felds currently flat. We had
Speaker 2: seen more of a bid a little bit earlier in trading. Look,
Speaker 2: but the overall question is can the FED be cutting
Speaker 2: to the whacking proportion of a fifty basis point as
Speaker 2: soon as September most now daling that back to a
Speaker 2: twenty five basis point expectation. Therefore, maybe just when coming
Speaker 2: out of some of these more risk on trades, i'd
Speaker 2: talk of that within the spectrum of Bitcoin off by
Speaker 2: more than two percent. But of course, maybe that's the
Speaker 2: political reflection of the debate of yesterday, when you know,
Speaker 2: former President Trump is deemed a more crypto pro candidate
Speaker 2: and perhaps maybe the market feeling his before moments was
Speaker 2: lackluster versus that of VP Harris. Let's move on and
Speaker 2: have a look at what the individual movers are looking
Speaker 2: like in terms of technology. Look the bid up in
Speaker 2: certain solar names more than nine percent high for First Solar,
Speaker 2: that again being deemed perhaps a fallout of what was
Speaker 2: a strong performance by VP Harris yesterday. And also looking
Speaker 2: what's happening with Armholding once again rising some three percent.
Speaker 2: This is more back to its V nine chip design.
Speaker 2: Maybe that's been integated into the new Apple chip. And look,
Speaker 2: really Morgan Stanley once again singling this name out as
Speaker 2: one of its best forward focuses for sort of edge
Speaker 2: AI as they're calling in and Tesla look biggest points
Speaker 2: drag on the NASDAC wanted to call it out more
Speaker 2: than two and a half percent lower ed.
Speaker 3: What are you looking.
Speaker 4: At Waimo, the autonomous driving arm of Google parent Alphabet,
Speaker 4: has been making some progress of late. Autonomous ride hailing
Speaker 4: has hit more than one hundred thousand weekly paid rides
Speaker 4: across Waymo's first markets, and the companies also published new
Speaker 4: data showing it's done twenty two million rider only miles
Speaker 4: to date with no one in the driver's seat. Joining
Speaker 4: us to discuss Waymo co CEO Tequidra Maurakana, who last
Speaker 4: week was also named in Times one hundred Most Influential
Speaker 4: in AI list for twenty twenty four. Good morning to you, Tequidra.
Speaker 4: When we said you were coming on the show, lots
Speaker 4: of people have very sort of granular questions about the
Speaker 4: paid rides, so let's start there. You know, what is
Speaker 4: the average distance taken, the average fare per ride, and
Speaker 4: a bit more about the economics of what you've achieved.
Speaker 13: Yeah, thank you so much Ed for having me, and
Speaker 13: I would love to hear more about your experience because
Speaker 13: I've been watching your social engagement.
Speaker 14: Like so many of our riders. So you said it.
Speaker 13: You know, we've reached over one hundred thousand rides per
Speaker 13: week across.
Speaker 14: San Francisco, Phoenix and Los Angeles.
Speaker 13: Those the distances that people travel and how they're using
Speaker 13: a service very wildly between those locations. In San Francisco,
Speaker 13: we're finding that like thirty six percent of people are
Speaker 13: actually using the service to connect with transit, you know,
Speaker 13: which is really surprising for us. So that's like depending
Speaker 13: on where they are in the city, it could be
Speaker 13: like about a three mile ride to get to a
Speaker 13: transit or to get to work. Other people are using
Speaker 13: it to run errands and to doctor's appointments, So it
Speaker 13: really depends. And when you talk about the economics, you know,
Speaker 13: we're a premium service, and so people are paying for
Speaker 13: the consistency and the safety of the Waimo driver in
Speaker 13: the Waimo one service.
Speaker 4: Under the sort of co ceo model, you're really focused
Speaker 4: on the commercialization of what Weimo has been doing for
Speaker 4: quite a long time. And just going back to what
Speaker 4: you just said, Yeah, I use way Moo often. I
Speaker 4: also use Tessa's FSD supervised and was using crews and
Speaker 4: you know, the experience is interesting, but I'm trying to
Speaker 4: think about how I would use it in the course
Speaker 4: of my normal life, and for me, SFO is a
Speaker 4: big thing. So when am I going to be able
Speaker 4: to go down to SFO in a way moo from
Speaker 4: here on Peer three Embarcadero, and what's the progress you're
Speaker 4: making there.
Speaker 13: Yeah, So, you know, when we launched in Phoenix, one
Speaker 13: of the early early engagements was with the Phoenix Sky
Speaker 13: Harbor Airport and so now we offer twenty four to
Speaker 13: seven pickup at the curb side there.
Speaker 14: You know, it's a process.
Speaker 13: We were the first autonomous vehicle company to receive FA
Speaker 13: approval to be able to do that kind of pickup,
Speaker 13: and so we're deeply engaged with SFO officials so that
Speaker 13: we can do exactly that kind of pickup.
Speaker 14: The other thing that we're also deeply engaged in with.
Speaker 13: Our employees right now is fully autonomous rides on freeways
Speaker 13: because you know, people want to take trips to and
Speaker 13: from the airport and they want to do it on freeways,
Speaker 13: and so we have that going in Phoenix. We have
Speaker 13: it also in San Francisco with our employees right now.
Speaker 13: And both of those are really critical unlocks for us,
Speaker 13: and we're really focused on it right now. And you know,
Speaker 13: doing everything with safety at the center of how we move.
Speaker 13: It's iterative, it's deliberate and it's it takes what it
Speaker 13: takes to get it right.
Speaker 2: Let's dwell on that safety to Quiedra and thank you
Speaker 2: for joining us day because SMP actually cut us to
Speaker 2: you calling out WEIMO as the front runner in the
Speaker 2: field of avs in the United States. But they do
Speaker 2: say challenges remain, including an ongoing investigation from the National
Speaker 2: Highway Traffic Safety Administration.
Speaker 3: How are you discussing that?
Speaker 2: How are you looking at your safety data?
Speaker 14: So we're really really proud.
Speaker 13: I mean we you know, found in two thousand and
Speaker 13: nine as a Google self driving car project. Our company
Speaker 13: culture is built around safety, and it's built around the
Speaker 13: transparency of our safety. You know, there's not one measure
Speaker 13: of safety, so we've built a lot of measures and
Speaker 13: a lot of transparency. In last week, we launched the
Speaker 13: Safety Hub, and we're the only company that's sort of
Speaker 13: putting all of our data out there for academics, the media,
Speaker 13: everyone to engage with it and understand why it is
Speaker 13: that we know that we are through the data improving
Speaker 13: road safety. You just had some of the stats up right,
Speaker 13: like reducing the number of air bag deployments injury causing crashes.
Speaker 13: I mean, this is why we exist right. Level four
Speaker 13: technology should make the road safer for humans, for pedestrians,
Speaker 13: for cyclists, vulnerable road users, and we're showing that that's
Speaker 13: the case. But we're still with the NITSA investigation, engaging
Speaker 13: demonstrating that you know, engaging at every level of government
Speaker 13: is what you have to do when you're the first
Speaker 13: to do this. No one's reached this level of scale,
Speaker 13: and so we understand NITSA has a role to play,
Speaker 13: and we also have a role to play in being
Speaker 13: very transparent.
Speaker 2: And for that you need money and luckily you've got
Speaker 2: a large amount of it five billion coming from Alphabet.
Speaker 2: Just tell us about the investment needs, the focus of
Speaker 2: that S and P again calling out in the need
Speaker 2: for this sort of capital investment to drive the US forward.
Speaker 13: Yeah, so super fortunate to be backed by Alphabet as
Speaker 13: well as our other external investors. You know, we're laser
Speaker 13: focused on scaling this technology and so that investment, while
Speaker 13: it's a big number, doesn't represent a significant growth in
Speaker 13: our overall trajectory because we've been very diligent.
Speaker 14: About bringing down our cost structure over time.
Speaker 13: And so you saw us in the last couple of
Speaker 13: weeks introduce our sixth generation driver. When you see us
Speaker 13: introducing a new technology or a new approach to our
Speaker 13: go to market strategy, one of the things that you
Speaker 13: can think about is that's going to make scaling our
Speaker 13: business more efficient over time. And so that's what we're
Speaker 13: really focused on doing, and having the backing of Alphabet
Speaker 13: is a great, great place to be Ti.
Speaker 4: Keijra, what's your relationship like with Ruth Korat. I had
Speaker 4: my sort of final quarterly earning school with her at
Speaker 4: the last call, and she's focused on other things. Now,
Speaker 4: how will you work together as she kind of transitions
Speaker 4: to a different function at Alphabet.
Speaker 13: Yeah, so Ruth is going to remain involved, right She's
Speaker 13: taking on this role as president, and she's investment officer
Speaker 13: and we are obviously a really important investment for Alphabet,
Speaker 13: and so she's been involved since I joined the company.
Speaker 14: She's a very very ardent supporter of.
Speaker 13: Weimo and I look forward to continuing to work with
Speaker 13: her in this new capacity.
Speaker 4: Takeidra, as you know, I kind of have a hands
Speaker 4: on experience of your competitive landscape. What do you make
Speaker 4: of sort of testless strategy with robotaxi in a proprietary
Speaker 4: ride hailing app and also why sort of is your
Speaker 4: approach different and going to succeed to them or to
Speaker 4: a cruise for example.
Speaker 13: You know, this sort of question of competitive landscape I
Speaker 13: think is so interesting because we are in the business
Speaker 13: of trying to make the road safer, and we are
Speaker 13: in the business of doing it in a way that
Speaker 13: takes the human out of the.
Speaker 14: Lip for two reasons.
Speaker 13: One is it expands the number of people who have
Speaker 13: access to mobility options. Right, if you don't need a
Speaker 13: driver's license, if you don't have to sit behind the wheel,
Speaker 13: then Waymo's a perfect opportunity for you. And hopefully any
Speaker 13: level four that actually any level four system that actually
Speaker 13: makes you know a road safer, will be there.
Speaker 14: And so that's the way we think about it.
Speaker 13: And so when I think about some of the other
Speaker 13: approaches that people are taking, I think, if you need
Speaker 13: a driver's license or if the human has to take over,
Speaker 13: it's just very different and it's not you know, we're
Speaker 13: heads down focused on our strategy, which is a level
Speaker 13: for technology.
Speaker 2: Thank you for talking us through the strategy today, my
Speaker 2: mon Coco Takeidra Mama Kana.
Speaker 3: We appreciate your time.
Speaker 2: Now coming up, we'll be joined by a Liz Yang,
Speaker 2: head of Growth and Azuki for her take on the
Speaker 2: presidential debates impact on crypto markets.
Speaker 3: Well, they're same line. This is Bluemeg technology.
Speaker 2: It's gone viral. Taylor Swift has endorsed Kamala Harris. She
Speaker 2: made the announcement just minutes after the debate of yesterday,
Speaker 2: wrapped through a social media post, as you can see,
Speaker 2: featuring her cat as she calls herself a childless cat lady.
Speaker 3: We understand the reference there.
Speaker 2: She says she is voting for Harris because quote, she
Speaker 2: fights for the rights and causes I believe need a
Speaker 2: warrior to champion them.
Speaker 3: Bloomberg Opinion. David Lee is with us now, Dave.
Speaker 2: It feels though that underlying all of this is artificial intelligence,
Speaker 2: and you point.
Speaker 3: That out on your piece.
Speaker 15: Yes, I mean this was the thing that Taylor Swift says,
Speaker 15: I kind of motivate her to speak out and publicly
Speaker 15: endorse the Harris campaign. I mean, she may have done
Speaker 15: it anyway, but she made a specific point of bringing
Speaker 15: this up in her post. She said there had been
Speaker 15: misinformation posted about her by Trump on truth social suggesting
Speaker 15: that she had been that she was endorsing him, and
Speaker 15: some of her fans were supporting him as well. And
Speaker 15: so what I think this kind of represents is, you know,
Speaker 15: the first kind of major impact we've seen from the
Speaker 15: use of.
Speaker 4: AI in an election.
Speaker 15: We've heard researchers warn that deep fakes and other kind
Speaker 15: of misinformation using AI would perhaps influence voters, and this
Speaker 15: is kind of what's happened, although it's come from a
Speaker 15: rebuttal rather than the original content itself, and Taylor swift
Speaker 15: response is going to be seen by many more people
Speaker 15: than the original post part by Trump.
Speaker 4: As you point out in your opinion column, we can
Speaker 4: only speculate if Swift would have endorsed Harris had that
Speaker 4: fake endorsement not happened. But then there's like the Taylor
Speaker 4: Swift effect, right, and you know, you try and make
Speaker 4: sense of a presidential debate. What's your conclusion in the
Speaker 4: column about the impact Taylor Swift coming out and endorsing
Speaker 4: Kamala Harris will have on this election race? Opinion Tech
Speaker 4: columnist davely Go, Well, I.
Speaker 15: Think one of the things we've seen in the past
Speaker 15: when Taylor Swift has brought herself into politics, which we
Speaker 15: know she does very very carefully, and with a great
Speaker 15: deal of thought. Is that what we typically see is
Speaker 15: voter registrations among young people, among young women in particular,
Speaker 15: tends to jump to go up quite considerably, So I
Speaker 15: imagine we'd see that happen again here. There's questions of
Speaker 15: how much of that translates to people actually going.
Speaker 4: To the polls.
Speaker 15: But put it this way, Taylor Swift's endorsement, and it's
Speaker 15: certainly one you prefer to have then not have, right, so,
Speaker 15: particularly when it's done in a way that is drawing
Speaker 15: attention to one of the major criticisms of Trump, which
Speaker 15: is that he makes things up and puts them on
Speaker 15: his website.
Speaker 2: Wienberg Opinions davely appreciate it. Go check out his column. Meanwhile,
Speaker 2: let's get to where other youthful voters have been looking crypto,
Speaker 2: and more importantly, let's look at bitcoin because it is
Speaker 2: actually under some pressure today after the last two training
Speaker 2: days off by a quarter of percent. Call that CPI,
Speaker 2: but maybe also call it a reaction to the US
Speaker 2: presidential debate. Let's discuss with Lizziang's head of growth at
Speaker 2: True Labs, and Liz I'm really interested more broadly in
Speaker 2: how crypto is being used as a gauge for the
Speaker 2: former president Trump's performance or chances of being re elected.
Speaker 16: There are several different ways. So firstly, if you look
Speaker 16: up the price of bitcoin, you can consider that as
Speaker 16: a proxy for how the crypto sectory views Trump's chances
Speaker 16: of being elected and the upcoming president election. This is
Speaker 16: because Trump has come out as a staunchly pro crypto candidate,
Speaker 16: forcing the Democrat's hand on the issue of crypto policy. Now,
Speaker 16: if you look at prediction markets like polymarket, what's really
Speaker 16: really fascinating is that almost in real time, viewers were
Speaker 16: able to track crypto sector's sentiment around the timestamps of
Speaker 16: when each candidate came up with their respective arguments.
Speaker 4: Liz I was doing something similar last night because we'd
Speaker 4: reported on it. We said, okay, if you want to
Speaker 4: follow some sort of real time sentiment, look at specific
Speaker 4: crypto assets at trade twenty four to seven. What I
Speaker 4: couldn't work out was is this just a clear situation
Speaker 4: where Trump is the crypto candidate and Harris is not,
Speaker 4: or there's just not a thorough understanding of policy for
Speaker 4: either candidate.
Speaker 3: It's a really good question.
Speaker 16: So overall, when you take a look at markets like
Speaker 16: prediction markets. Information is of course imperfect, but I think
Speaker 16: that's a reflection of the American populace at lar in
Speaker 16: terms of how they vote. What I think is very
Speaker 16: powerful about tools like polymarket, other prediction markets, as well
Speaker 16: as political meme coins or politifyed coins is that they're
Speaker 16: a way to be able to gauge the barometer in
Speaker 16: terms of sentiment. And I think that if you take
Speaker 16: a look at previous selections, there's been enormous appetite in
Speaker 16: terms of using statistics to track where sentiments at, so
Speaker 16: for example five thirty eight, and I see polymarket and
Speaker 16: politify meme coins as a natural extension of this behavior.
Speaker 2: Let's just talk about how the campaign Trump campaign more
Speaker 2: broadly has embraced crypto non fungible tokens me, but also
Speaker 2: this liberty financial world. Liberty financial it seems to be
Speaker 2: a DeFi potential protocol doesn't seem to be live yet,
Speaker 2: but being talked around, particularly by his sons.
Speaker 3: What do you make of that particular project.
Speaker 16: I think Trump is trying to put his money where
Speaker 16: his mouth is, and he's trying to enter into these
Speaker 16: various different forays to show his you know, dedication and
Speaker 16: interest in the cryptospace.
Speaker 4: Where do we go from here? I mean, there comes
Speaker 4: a point where the markets can continue doing what they're doing,
Speaker 4: be their prediction or specific asset you track, or people
Speaker 4: look elsewhere. What's your kind of hunch in that respect, So.
Speaker 16: When it comes to tools like prediction markets and meme coins,
Speaker 16: I see this as a natural extension of behavior that
Speaker 16: actually started during the pandemic with Wall Street bets. And
Speaker 16: what happened during then is that because of the pandemic,
Speaker 16: people were starved for social contact with their friends and family,
Speaker 16: and they were able to form these bonds with other
Speaker 16: traders on such forums. So what it means is that
Speaker 16: for a lot of younger people, investing is not necessarily
Speaker 16: just about ROI. It's also about Internet culture and memes
Speaker 16: and also entertainment as well as community. And where I
Speaker 16: see political meme coins coming out of this, or polified
Speaker 16: tokens is that it really is a natural successor of
Speaker 16: this kind of trend. So with politify meme coins that
Speaker 16: it combines financial nihilism with political satire, with Internet grown
Speaker 16: culture as well as entertainment, So really transforming how the
Speaker 16: younger generations not only looking at investing, but participating in
Speaker 16: the political process.
Speaker 4: Liz Yang, head of growth at a Zuki and Kira Labs.
Speaker 2: Let's talk about Sony's PlayStation five. It's got a refresh
Speaker 2: and the company is debuting a UPS five.
Speaker 3: Pro, but it comes with a premium price tag. Megs.
Speaker 2: Jason Shadd joins us some more hoof it's called people by.
Speaker 11: Surprise, seven hundred dollars for the PlayStation five Pro. There
Speaker 11: was a meme way back in the day when the
Speaker 11: PlayStation three was announced because they came up on stage
Speaker 11: and said that'll be five hundred and ninety nine US dollars.
Speaker 11: That was a whole meme in Now it's one hundred
Speaker 11: dollars more. So I guess the memes have to keep
Speaker 11: up with inflation too.
Speaker 4: I was taken aback Jason because as you know, like
Speaker 4: I'm a loyal, avid PlayStation user. It's my console of choice.
Speaker 4: But when you think about the console market as a whole,
Speaker 4: this is like PlayStation raising prices when the market is
Speaker 4: kind of going to other direction, right like kids today.
Speaker 4: Apologies for the expression, but they're doing something different with gaming.
Speaker 7: Yeah, it's funny.
Speaker 11: I think that if I can offer a few words
Speaker 11: in PlayStation's defense, here are at least trying to understand
Speaker 11: where they're coming from.
Speaker 7: So the PS five Pro, this is not a new console.
Speaker 11: This is a model of the PlayStation Vibe that will
Speaker 11: essentially play the same games at more vivid graphics, higher
Speaker 11: refresh rates, and better resolutions. Essentially, this thing is meant
Speaker 11: for tech officionadas, the same types of people who maybe
Speaker 11: bought an Apple Vision Pro or are getting a new
Speaker 11: phone every year. So this is not meant for kids
Speaker 11: or the mass market. This is a model that is
Speaker 11: meant for people who have money to spend, who don't
Speaker 11: really care about price quite as much and just want
Speaker 11: the highest end gear.
Speaker 7: In fact, I saw a good stat here.
Speaker 11: This is from Matt Piscatella, and analyst for Circana, and
Speaker 11: he said that the PS four Pro or sorry, the
Speaker 11: PS four Pro, which was a refresh of the PlayStation four,
Speaker 11: the last generation console, accounted for thirteen percent of total
Speaker 11: lifetime PS four units, so not a significant amount, and
Speaker 11: I expect this will be a similar This will play
Speaker 11: a similar role in the market.
Speaker 3: Told to me about a lack of disk drive Jason.
Speaker 11: Yeah, man, I had a conversation not too long ago
Speaker 11: at a party in La where I was talking to
Speaker 11: an executive for one of these big console companies and
Speaker 11: I was like, huh, it's funny the the market is
Speaker 11: moving to digital pretty quickly.
Speaker 7: And he was like, now, Jason, it's a red There.
Speaker 7: A large and very large.
Speaker 11: Percent of customers are buying their games digitally these days.
Speaker 11: Are not even buying bothering with discs. You guys are
Speaker 11: about stalking about game stop. That is why they've been
Speaker 11: on the dancing for a long time. And so I
Speaker 11: think Sony sees the disk drive as an accessory, and
Speaker 11: it is you can buy one as an add on.
Speaker 7: They see it as not necessary for the large majority
Speaker 7: of people.
Speaker 4: And in fact, I.
Speaker 11: Would say that the next generation of consoles, it's very
Speaker 11: likely that they will not come with dis drives, and
Speaker 11: that disk drives will be will be add ons for
Speaker 11: those as well.
Speaker 4: I have so much nostalgia for a disk Jason super
Speaker 4: quick the details of pre ordering and when PS five
Speaker 4: Pro actually comes.
Speaker 11: Out, Yes, it comes out, I believe November sixth, and
Speaker 11: it is seven hundred dollars and pre orders they're going
Speaker 11: to make available.
Speaker 7: I believe in the next couple of weeks. I believe
Speaker 7: in two weeks or so.
Speaker 2: Some of those FX price point differences from the UK
Speaker 2: and EU as well. Want to watch plame most Jason Schreyer,
Speaker 2: joy to have you.
Speaker 3: Thank you. That's it for this edition of Bloomberg Technology ED.
Speaker 3: Don't dwell on your nostalgia for discs.
Speaker 4: I know, but I will play some PlayStations today. Now,
Speaker 4: don't forget recap the show on the podcast. You know
Speaker 4: where to find it on the Bloomberg terminal as well
Speaker 4: as online on Apple, Spotify and iHeart huge. Thanks to
Speaker 4: everyone out in New York City, the team here in
Speaker 4: San Francisco. This is Bloomberg Technology