Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from the heart of Silicon Valley with Ed Ludlow in
Speaker 1: Men Francisco.
Speaker 2: This is Bloomberg Tech coming up. The jobs markets cooling
Speaker 2: with US employers unexpectedly cutting jobs in July, and AI
Speaker 2: may be part of the story, plus tech earnings back
Speaker 2: in focus will be joined by the CEOs of Twilio,
Speaker 2: Lyft and DraftKings on their results and Open AI's first
Speaker 2: consumer device will be an AI smart speaker that will
Speaker 2: look like a donut. Will have the details. This is
Speaker 2: what markets look like this Friday. Happy Friday to you.
Speaker 2: It is a story about jobs, data, tech stocks pushing
Speaker 2: highlan asset one hundred up eight ten percent, some outperformance
Speaker 2: in chips and US year yield. I picked the US
Speaker 2: ten year yeld because we saw a move across the curve.
Speaker 2: But why not four point six four percent on the yield.
Speaker 2: We need to get into the numbers. Is there an
Speaker 2: AI story? Bloomberg International Economics and Policy Editor Mike McKee
Speaker 2: is with us, start with the numbers themselves, Like, what
Speaker 2: did the data show this morning?
Speaker 3: In simple terms?
Speaker 4: Well, basically, we lost jobs for the first time in
Speaker 4: many months, twenty three thousand jobs. Last time we lost
Speaker 4: some jobs was in February. Now why did that happen.
Speaker 4: A lot of it was government jobs. Local government education
Speaker 4: fell by fifty thousand, so it's not as bad as
Speaker 4: it looks on the surface. And unemployment fell to four
Speaker 4: point one percent. The reason for that is because a
Speaker 4: labor force shrunk again two hundred and forty thousand, fewer
Speaker 4: people looking for work, which pushed unemployment down to four
Speaker 4: point one percent. If you're not looking for work, you're
Speaker 4: not unemployed. But the good news and the potential AI
Speaker 4: story here is that on the positive side of the
Speaker 4: jobs numbers, we saw a lot of hiring in the
Speaker 4: sectors that AI touches, especially in construction for AI, data centers,
Speaker 4: et cetera, specialty contractors, and non residential construction, almost twenty
Speaker 4: thousand jobs in total, as demand for workers in those
Speaker 4: areas continues to really ramp up. And then you look
Speaker 4: at the manufacturing side for computers and semiconductors.
Speaker 3: And they added jobs as well.
Speaker 4: We haven't seen in a number of other categories, so
Speaker 4: ed at this point, it looks like AI is one
Speaker 4: of the few areas that did well last month. And
Speaker 4: that doesn't show any signs of really slowing down the.
Speaker 2: Legend mistem Economy Bloomberg International Economics and Policy correspondent Mike mckeeth,
Speaker 2: Thank you very much. Let's stay with that job's impact,
Speaker 2: joining us as Sarah Franklin Lattis CEO, and you know,
Speaker 2: Mike made the data so clear where there were gains
Speaker 2: were in industries that are seeing AI capital deployed, construction
Speaker 2: of data centers, for example. Your interpretation of those data.
Speaker 5: Points, Our interpretation is that this isn't a crisis.
Speaker 6: This really is the recalibration.
Speaker 5: What you're seeing is the workforce changing and evolving as
Speaker 5: AI takes shape, not just in the tech sector, but
Speaker 5: also in manufacturing and construction. So this is really a
Speaker 5: recalibration that we've been anticipating.
Speaker 2: How committed our companies big and small on your platform
Speaker 2: to sort of long term hiring. The bit that I'm
Speaker 2: struggling to understand is like, in the short term we
Speaker 2: get monthly changes in numbers, but companies come up with
Speaker 2: plans for this year, next year all the time. Do
Speaker 2: you see any evidence that they're restructuring the composition of
Speaker 2: those workforces?
Speaker 6: And we do.
Speaker 5: We see that companies are now through the chaos that
Speaker 5: we had the last several years where there wasn't predictability,
Speaker 5: and now companies are planning the long term. They're understanding
Speaker 5: what AI is good for and what it's not.
Speaker 6: They understand it much better than we did a year ago.
Speaker 5: So you're seeing companies recalibrate their workforce. You're seeing for
Speaker 5: deployed engineers. You're seeing people understand how AI can help them.
Speaker 6: And people are also.
Speaker 5: Realizing that just because AI is here doesn't mean that
Speaker 5: the work isn't. You can't just lay off a lot
Speaker 5: of workers and the work go away. You still need
Speaker 5: the knowledge, you still need the trust that you have
Speaker 5: in your company and the culture. And you see companies saying, Okay,
Speaker 5: we need our people, but we need to invest in
Speaker 5: their skills, not severance packages. We need to help them
Speaker 5: come along with this new trend. And so again it's
Speaker 5: a recalibration of the workforce and it's a transformation that
Speaker 5: every company is making and they're planning longer term.
Speaker 2: How competitive is compensation right now for existing workforce, but
Speaker 2: also if they are bringing people in in specific subsectors,
Speaker 2: the need to pay to get those best people.
Speaker 5: Yeah, I mean, this is a reality, is that people
Speaker 5: with the skills in demand will be able to command
Speaker 5: solid compensation. And as cost rise, so do wages need
Speaker 5: to as well. And this is again a recalibration that
Speaker 5: you're seeing in the workforce, and it's a call to
Speaker 5: everyone to make sure that you are skilled in AI,
Speaker 5: that you understand and are proficient in the technology skills
Speaker 5: that companies are hiring for. And it's a tried and
Speaker 5: true thing that if there's skills that are in demand,
Speaker 5: companies will pay for them.
Speaker 2: What's one thing that you're saying through the Lattice platform
Speaker 2: that surprised you since last year on the show.
Speaker 5: So something that's surprised me is how a lot of
Speaker 5: companies are coming to us and saying, Sarah, we just
Speaker 5: want to get back to business basics of how we
Speaker 5: manage our workforce, how we understand the performance of our workforce,
Speaker 5: and really that workforce intelligence and so the basic habits
Speaker 5: that you need from all the away from your executive
Speaker 5: suite to your individual contributor to understand how people are performing,
Speaker 5: how their work relates to the outcomes of a company.
Speaker 5: That is what the back to basics is so powerful
Speaker 5: right now.
Speaker 3: So you're using the word performance.
Speaker 2: What was so interesting this morning, outside of sort of
Speaker 2: the technology contexts, was how quickly the conversation goes to productivity.
Speaker 3: Right when you get set of jobs numbers.
Speaker 2: You know, all these different maybe they're from fixed income,
Speaker 2: maybe they're inequities market saying oh, you know, we're starting
Speaker 2: to see AI driven productivity in the economy. What's the
Speaker 2: sort of workforce evidence of that.
Speaker 5: Well, the workforce evidence is that what you're seeing is
Speaker 5: people are able to really do more, but in a
Speaker 5: way that is strategic to the business. It's around helping
Speaker 5: AI automate tasks that used to distract your time and
Speaker 5: attention and when you can put your time into the
Speaker 5: strategy really thinking of how you're going to grow, because
Speaker 5: you don't shrink your way to growth.
Speaker 7: ED.
Speaker 6: This is every company is thinking how do I grow?
Speaker 6: How do I perform?
Speaker 5: How do I unlock the human potential? And Lotus helps
Speaker 5: all of our customers do that. And that's the frame
Speaker 5: of mind that all of the companies are in right
Speaker 5: now is how do we grow and how do we
Speaker 5: use our existing workforce, invest in their skills, invest in
Speaker 5: how AI can help them to grow.
Speaker 3: That was so beautifully six sincts.
Speaker 2: You know how AI can automate a task that would
Speaker 2: be distracting or take up your time. If somebody's good
Speaker 2: at AI, and it's good at allowing AI to do
Speaker 2: that time consumption for them, are they able to then
Speaker 2: turn around in command higher compensation.
Speaker 5: They are because they have the knowledge that is immediate
Speaker 5: that can augment their skills and expertise. And that is
Speaker 5: how I mean even today the job supports information is
Speaker 5: something which AI helps me deeply understand everything that's going
Speaker 5: on nuanced, I don't have to spend an hour doing research.
Speaker 5: I can get the information very quickly, and that is
Speaker 5: how I can then show up with my perspectives as
Speaker 5: a CEO of an HR tech company to share what
Speaker 5: I'm seeing instead of spending my time just understanding the
Speaker 5: all of the data. AI can really help me do
Speaker 5: that and be strategic as a CEO.
Speaker 2: Sarah Franklin A laddis, thank you very much. Indeed a
Speaker 2: big factor in the market. SpaceX shares are bouncing back
Speaker 2: even as a massive wave of inside A stock hits
Speaker 2: the market. Yes, we're up almost nine percent. Shares climbing Thursday,
Speaker 2: of climbing Friday and Thursday in a multi day move,
Speaker 2: as the lock up expired for as many as nine hundred.
Speaker 3: And twelve million shares.
Speaker 2: That's worth roughly one hundred billion dollars, but follows a
Speaker 2: fourteen percent plunge Wednesday after SpaceX's first earnings report as
Speaker 2: a public company, which showed higher than expected AI spending.
Speaker 2: One of the catalysts right now is Augus upgrading the
Speaker 2: stock to buy, pointing to a rapid payback from those
Speaker 2: AI investments. A one hundred and sixty dollars price target,
Speaker 2: but we remain pretty firmly below the IPO price of
Speaker 2: one hundred and thirty five dollars a share set in June. Okay,
Speaker 2: coming up. Earning season continues. Twilio just beat analyst expectations
Speaker 2: for its second quarter, blue past them. Really, we had
Speaker 2: the CEO Cozemership Chandler with us.
Speaker 3: Next, this is Bloomberg.
Speaker 2: Tech cloud communications platform. Twilio reported second quarter earnings with
Speaker 2: strong results, beating analyst expectations on revenue and reporting record profit, profitability,
Speaker 2: and free cashflow. Yes, that is a stock that's up
Speaker 2: twenty nine percent, on track for its biggest jump since
Speaker 2: May of twenty twenty. Twilio CEO Cosmoship Chandler joins us
Speaker 2: here in the San Francisco studio.
Speaker 3: It's a big stock move.
Speaker 8: Yeah, I mean, we had a great quarter.
Speaker 9: We were able to re accelerate growth on the top line,
Speaker 9: grow our gross profits, and turn in record free cash
Speaker 9: flow and profitability. I mean, I think right now we're
Speaker 9: one of those kind of rare stocks that's able to
Speaker 9: demonstrate you know, quite good financial characteristics, also reduce our
Speaker 9: stock based compensation, and you know, kind of position ourselves
Speaker 9: as an AI winner.
Speaker 2: So an AI winner. I find that really interesting. I've
Speaker 2: tried to talk to as many people as I can
Speaker 2: about is Twilio the predator or the prey in this
Speaker 2: in this AI world? And actually the response was they
Speaker 2: are AI proof. Essentially, you have done deals with forty
Speaker 2: five hundred, four thousand, five hundred carrier agreements, right that
Speaker 2: that is bulk messaging, Like that shows that you have
Speaker 2: a big place in this era.
Speaker 9: Well, I mean, I think the way to think about it,
Speaker 9: it's actually forty eight hundred, right, forty eight hundred different
Speaker 9: interconnections across one hundred and eighty countries all over the world.
Speaker 9: Like that's a level of complexity that is regulated. It
Speaker 9: requires like physical contracts that actually have to get done
Speaker 9: and a very very significant level of compliance that we
Speaker 9: make sure that our customers go through so that we
Speaker 9: protect consumers on the other side. And that complexity actually
Speaker 9: creates mode And I wouldn't actually necessarily call ourselves predator
Speaker 9: or prey.
Speaker 8: I mean the way that we.
Speaker 9: Position ourselves is as the Switzerland of kind of this
Speaker 9: AI era. I mean, we want to be infrastructure that
Speaker 9: any company can integrate to and be seamless based on
Speaker 9: what choices they've.
Speaker 3: Already made about it.
Speaker 2: You do have AI based or AI powered messaging tools
Speaker 2: for example, Those also showed traction in the Core to Gone.
Speaker 8: Yeah.
Speaker 9: I mean the interesting thing, to be honest, is that
Speaker 9: AI is a small part of the story, to be.
Speaker 3: Honest for you right now, for us.
Speaker 9: Today, I mean, it's certainly creating a little bit of tailwind,
Speaker 9: but in terms of its like material contribution to revenue
Speaker 9: that is still relatively modest. And I think given the
Speaker 9: fact that we're relatively early innings in the AI story,
Speaker 9: there's a lot more tailwind coming here for the company.
Speaker 2: Well, look at it another way, how many AI native
Speaker 2: companies I know people some people say umbrage with that
Speaker 2: phrase rely on Twilio thousands.
Speaker 3: That's the truth.
Speaker 9: But the reality also is that they are relatively small
Speaker 9: contributors to revenue.
Speaker 8: Right.
Speaker 9: The reality on the other side of it is is
Speaker 9: that enterprises like they're the ones spending the dollars. Right,
Speaker 9: So if you think about the contribution to revenue that's
Speaker 9: really coming from much larger companies. Even though we're super excited.
Speaker 8: To be able to work with all these really.
Speaker 9: Creative AI startups orion ai ultrap, you know, we all
Speaker 9: the way through to you know, a digital native like
Speaker 9: an Alassian, or you know, kind of even a leading
Speaker 9: home retailer that we pointed to in our most recent remarks,
Speaker 9: like that whole breadth of capabilities that we offer to
Speaker 9: any company on the planet. Like, that's what gets me
Speaker 9: excited about the opportunity here.
Speaker 2: Again, the stock is up almost thirty percent and on
Speaker 2: track for its best day since May of twenty twenty,
Speaker 2: but up now seventy six percent year to day, so
Speaker 2: you're getting the credit for it. The big picture academic
Speaker 2: debate is what does the world look like where a
Speaker 2: consumer an individual interacts with a real AI agent, And
Speaker 2: there are lots of parts of your business where you
Speaker 2: have to think about that future, how do you think
Speaker 2: about it?
Speaker 9: I mean, actually, I think that provides even mortail ones, right.
Speaker 9: I mean the future that we're literally planning for is
Speaker 9: one in which interactions are human agent human agent to human.
Speaker 9: That's going to require channels. We're also sort of making
Speaker 9: investments that anticipate a future in which if you're interacting
Speaker 9: with an agent, you've got to be able to know.
Speaker 8: Who they are on the other side.
Speaker 9: And so we're starting to make investments in identity, for example,
Speaker 9: through the channels that we already provide to our customers,
Speaker 9: and then using context as a means to be able
Speaker 9: to power this next era of AGENTICAI.
Speaker 2: Prior to being CEO, you had other roles at Twilio,
Speaker 2: and I think a lot of people are looking at
Speaker 2: the bottom line and how structurally different the profit story
Speaker 2: for this company is. I think it's right to say
Speaker 2: that that was a focus for you in your tenure
Speaker 2: as CEO of the company.
Speaker 10: Yeah.
Speaker 9: I mean it's been a focus, and I mean I
Speaker 9: think we want to be known as people that are
Speaker 9: running the company well, we want to be financially disciplined.
Speaker 9: I think we have opportunities to make new investments. But frankly,
Speaker 9: we don't have to start a new investment cycle. We
Speaker 9: can take the cash flows that we're already generating, reinvest
Speaker 9: some of that back into the company, but also provide
Speaker 9: operating leverage back to our investor base.
Speaker 2: We've had a very financed focused conversation and I'm going
Speaker 2: to end that way as well. You know, you have
Speaker 2: before you double digit organic growth, right, kind of set
Speaker 2: out into the future, what's the biggest headwind or risk
Speaker 2: to that.
Speaker 9: I don't see a lot of headwinds kind of sitting
Speaker 9: here today. I mean, look, we always operate in a
Speaker 9: dynamic macroeconomic environment. I think the AI story, you know,
Speaker 9: it's a very long, kind of secular tailwind. It's probably
Speaker 9: going to be bumpy from time to time. But as
Speaker 9: I kind of look through like the medium to long term,
Speaker 9: I see a lot of opportunities for the company, and
Speaker 9: you know, we're ready for the moment. We're kind of
Speaker 9: hitting our stride and we're very, very excited about what
Speaker 9: we're building and what our customers are doing, and it's
Speaker 9: on us to anticipate their next move'.
Speaker 2: Twalie I Ceea Cousmanship China, with the stock up more
Speaker 2: than thirty percent. Now, thank you very much. Let's get
Speaker 2: over it to New York. K Webloomberg's you hire and
Speaker 2: is standing by with some news You hire, Hi Ed.
Speaker 3: It's time now for talking tech.
Speaker 11: First up s k Heinez is leading a record eighty
Speaker 11: three billion dollars in share sales by Asian firms, making
Speaker 11: July the highest ever monthly haul for firms in the
Speaker 11: Asia Pacific region, and the South Korean company isn't slowing
Speaker 11: down with plans to spend thirty eight billion dollars to
Speaker 11: expand it's chip making facilities in the country. Plus, AMD
Speaker 11: has plans to purchase Canadian startup talents to build new
Speaker 11: AI chips, expanding the company's chipbobrings is it tries to
Speaker 11: differentiate itself from competitor Nvidia, tell us this technology is
Speaker 11: used in chips that handle inference and says that hardwiring
Speaker 11: AI models into chips can create more efficient machinery and moonshots.
Speaker 11: Kimmy K three is the latest AI model to escape
Speaker 11: a sandbox in a third party test. That's according to
Speaker 11: research firm Frontier Security. Kimmy K three joins the life
Speaker 11: of models from Anthropic, Open Ai, and Meta, adding to
Speaker 11: concerns on how well these AI companies can control.
Speaker 2: Your technology ed Thank you Hira, and happy Friday to
Speaker 2: you now coming up. Look at shares of Take two
Speaker 2: up around three to four percent after the company reported
Speaker 2: earnings with lies on the anticipated release of Grand theft
Speaker 2: Auto six.
Speaker 3: Discuss that next this is Bloomberg Tech.
Speaker 2: Open AI's first consumer.
Speaker 3: Device will look like a doughnut.
Speaker 2: According to sources, The ai smart speakers designed to be
Speaker 2: carried around the home with one hand and is slated
Speaker 2: to be released next year. The device will be positioned
Speaker 2: as an AI first computer that can help users get
Speaker 2: things done and will compete with moving and be complete
Speaker 2: with moving parts that help give it personality, and is
Speaker 2: likely to cost more than three hundred dollars. Those sources say,
Speaker 2: don't have a picture of it for you. I'm sure
Speaker 2: we will see one soon. Look at shares we take
Speaker 2: to Interactive up more than four percent now. The company
Speaker 2: posted first quarter bookings beading estimates at one point three
Speaker 2: nine billion, but two kept its four year forecasts below
Speaker 2: Wall Street expectations and trimmed its profit outlook.
Speaker 3: And of course, all.
Speaker 2: Eyes remain on the biggest release in the pipeline, Grand
Speaker 2: Theft Auto six joining us A.
Speaker 3: Bloomberg's Jason Schreier, I.
Speaker 2: Honestly kind of feel like we can part the performance
Speaker 2: in the court had gone and the kind of financial outlook.
Speaker 2: It is all about GTA. You have been talking to
Speaker 2: the company about that. They are signaling that the the
Speaker 2: pre demand tells us something that this is hasn't happened before.
Speaker 12: Yeah, investors, it's funny these these bookings and even an
Speaker 12: un revenue numbers beating missing estimates doesn't really matter. The
Speaker 12: number that investors really want to know is the number
Speaker 12: of pre orders that GTA six has right now, and
Speaker 12: TATO is not saying them. Take two has said that
Speaker 12: the number is unprecedented and exceptional and astounding. Those are
Speaker 12: all words of CEO strasdelnct Us. Yes, but they're not
Speaker 12: saying the exact numbers. So all eyes are on November
Speaker 12: nineteenth for the launch day and the final sales figure.
Speaker 2: The idea is that the world will have an expectation
Speaker 2: of what that number would be because we have a
Speaker 2: really good sense of what the prior GTA titles were
Speaker 2: able to achieve. Right, we know the date, but give
Speaker 2: us the kind of backstory of why it's taken us
Speaker 2: so long to get to GTA six.
Speaker 3: Yeah, a couple of things.
Speaker 12: So, GTA five, the last game in the series, came
Speaker 12: out in twenty thirteen and has since sold two hundred
Speaker 12: and thirty million copies. It did really well on launch day,
Speaker 12: but a lot of those sales have come in the
Speaker 12: year since then. It was really a long tail and
Speaker 12: unprecedented longtail for that game. And so the numbers that
Speaker 12: we're expecting here are going to be exponentially higher than
Speaker 12: the numbers we saw from GTA five on launch day
Speaker 12: because the series has gotten all that much bigger since then.
Speaker 12: As for why it's taken so long, this game has
Speaker 12: been in development for about eight years since the since
Speaker 12: the release of Red Dead Redemption two, which was Rockstar's
Speaker 12: previous game, And it's big, it's fast, it's got a
Speaker 12: lot going on. We'll find out more soon. And one
Speaker 12: another kind of date to watch if you're interested in
Speaker 12: Take two shares is August twenty seventh, which is when
Speaker 12: Rockstar and Take two has said they are going to
Speaker 12: show the first extended look at GTA six, meaning what
Speaker 12: it's actually going to look like and feel like to
Speaker 12: play the game rather than the kind of cinematic trailers
Speaker 12: that they've shown so far.
Speaker 3: And that's actually it's unprecedent.
Speaker 12: Another unprecedented thing is that it's going to be a
Speaker 12: Netflix exclusive. The gameplay is going to be released on
Speaker 12: Netflix six hours before increasing the rest of the Internet.
Speaker 2: Bloomberg, Jason Schreyer with all things GTA six, Thank you
Speaker 2: very much. Indeed, one other company out with earnings is Airbnb,
Speaker 2: and shares jumping by the most in sixteen months after
Speaker 2: the company boosted it's annual revenue forecast for a second
Speaker 2: time this year, citing robust demand in the US and
Speaker 2: also in Europe. Bloomberg, Natalie Luan is here, what do
Speaker 2: we need to know?
Speaker 10: Yeah, so Airbnb is seeing this really strong demand, especially
Speaker 10: from North America group travelers, really strong people of booking
Speaker 10: entire homes to go travel with friends, and you know,
Speaker 10: it's really contributing to this growth. Optimism that Airbnb is
Speaker 10: seeing is kind of a different story from last year
Speaker 10: where they would always call out that North America is
Speaker 10: sort of the drag on the business. And another thing
Speaker 10: to call out is, you know, this kind of optimism
Speaker 10: would bode well for a lot of Airbnb's new business
Speaker 10: initiatives like a la carte services like in home beauty
Speaker 10: appointments and grosser stocking, as well as their new you know,
Speaker 10: hotel booking initiative as well.
Speaker 2: So that's my question, what is Airbnb's technology story right
Speaker 2: because you have to look past it being a short
Speaker 2: term rental story right now.
Speaker 10: Yeah, So CEO Brian Chesky is trying to turn his
Speaker 10: company into an AI native company, using AI to help
Speaker 10: people discover homes more quickly, make a decision on the
Speaker 10: reservation more quickly, and basically.
Speaker 3: Convert them into bookers.
Speaker 10: So upcoming futures later this year include AI Search, which
Speaker 10: will be more conversational with more visual elements than your
Speaker 10: traditional chatbot. The other thing is like an AI home
Speaker 10: comparison to that they're testing. So that's what we're going
Speaker 10: to expect from them in the coming year.
Speaker 3: Bloombergs Nastie, thank you very much.
Speaker 2: Coming up, Lift CEO David Rischer joins us to discuss
Speaker 2: his company's earnings and its global expansion efforts. That's next.
Speaker 2: This is what markets look like. There has been a
Speaker 2: sharp slow down in US jobs market, technology stocks are higher,
Speaker 2: There is outperformance in semiconductors. Bond yields are falling, and
Speaker 2: it's all about the idea that that interpretation from the
Speaker 2: market reflects that the Fed will not be forced to
Speaker 2: raise interest rates anytime soon. Pretty good economic sum. It's halftime.
Speaker 2: This is San Francisco and Bloomberg Tech.
Speaker 3: A welcome back to boom Go Tech.
Speaker 2: It's a Friday where markets are being driven by economic data.
Speaker 2: Technology stocks are higher, We're up one percent on the
Speaker 2: NAZAQ one hundreds. Some outperformance in chip stocks, but very simply,
Speaker 2: there was a slowdown in the US jobs market.
Speaker 3: Not only are stocks.
Speaker 2: Higher, yields are coming down on treasuries, and the interpretation
Speaker 2: is that the Federal Reserve is not under sort of
Speaker 2: immense pressure to raise interest rates anytime soon. That is
Speaker 2: what's kind of happening in the here and now of
Speaker 2: the market. There are bigger and longer term considerations. Black
Speaker 2: Rocks sought to raise debt financing for a metadata center,
Speaker 2: but there was one type of investor. The asset management
Speaker 2: giant was trying to avoid those looking for a quick profit,
Speaker 2: so it focus on real money accounts, pension funds, insurance
Speaker 2: funds to avoid fast trading investors who can quickly tank
Speaker 2: a bond's secondary market performance, and so farther strategy looks
Speaker 2: to be working. Bloomberg's credit reporter Tashos Rosos is here
Speaker 2: to explain why there is a lot happening. Basically, supplis
Speaker 2: exploded and issuers have tried to reassure the market that
Speaker 2: supply is not going to overwhelm it and in the
Speaker 2: middle black rocks trying to manage that environment.
Speaker 3: It's exactly that.
Speaker 13: I mean, we were here last month talking about how
Speaker 13: these bonds underperforming the secondary market because frankly speaking, people
Speaker 13: who are concerned. People concern us so much bonds are
Speaker 13: going to come into the market, they won't be able
Speaker 13: to absorb that many. And what banks are trying to
Speaker 13: do now, obviously you cannot take away the AI build up.
Speaker 13: That's the future. The market has actually agreed with that,
Speaker 13: so that has to be financed somehow. But what the
Speaker 13: banks are trying to do is trying to take away
Speaker 13: the risks out of the market as much as they can.
Speaker 13: As you mentioned, fast money accounts, those who like buy
Speaker 13: the bonds sell them straight away for a quick profit.
Speaker 13: We've seen in previous months they come to the market
Speaker 13: and the bon price tanks straight away. You have to
Speaker 13: take them out of the market. And then of course
Speaker 13: you have reassurance by companies saying, yes, we're going to
Speaker 13: raise twenty five billion dollars to day one, comeback until
Speaker 13: the end of the year, as we saw yesterday with Alphabet.
Speaker 3: Yeah, we covered Alphabet.
Speaker 2: You know recently there have been several twenty five billion
Speaker 2: dollar bond deals, right I think about Amazon, Vidia, SpaceX.
Speaker 2: The main point is that there has been poor trading
Speaker 2: after that issuance, but the market still keeps going.
Speaker 13: Indeed, it keeps going, but the concerns are brewing a lot.
Speaker 13: So Barclay is the big British bank, reached out to
Speaker 13: three hundred investors and they ask them, what do you
Speaker 13: believe is going to drive risk premiums across bonds. Of
Speaker 13: the hyperscalers, sixty percent of them said supply cadence. What
Speaker 13: they're meant by that is the pace of supplying. Bring
Speaker 13: too many bonds and the market is going to go berserk.
Speaker 13: Twenty five percent, which is like a distant second, was
Speaker 13: whether these THEI investment is going.
Speaker 3: To play out.
Speaker 8: So there are two.
Speaker 13: Major risks in the market right now. The investors have
Speaker 13: to digest one is whether the AI prom is going
Speaker 13: to keep which is a bit of a longer term concern.
Speaker 13: The main concern right now as we speak is what
Speaker 13: people said, the supply and how you manage that, and
Speaker 13: this is what banks are trying to do, manage it better.
Speaker 2: This is the story that everyone's been reading about this morning.
Speaker 2: Bluebog's testos forrus Us, Thank you very much. Indeed, back
Speaker 2: to tech earnings shares of LIFT higher. The company reported
Speaker 2: growing demand for premium rides, also strengthening European markets. Super
Speaker 2: interesting and kind of the global expansion story. Lift CEO
Speaker 2: David Risher is with us. There is a very specific
Speaker 2: data point actually that I'd like to start on, and
Speaker 2: that is that in markets specifically San Francisco where you
Speaker 2: have Lyft rides and Weimo rides, you said San Francisco
Speaker 2: grew twenty percent year on year.
Speaker 8: That's right.
Speaker 2: Explain the causal or casual relationship within that data point.
Speaker 8: Yeah.
Speaker 14: So you know, our industry has gone through a big
Speaker 14: transformation and it is the sort of bringing on of
Speaker 14: these self driving vehicles WAYMOW courses the market leader.
Speaker 8: In that time.
Speaker 14: You see a transformation like this, one or two things
Speaker 14: can happen. You can either see sort of a substitution
Speaker 14: or you can see a market expansion, and in this case,
Speaker 14: we're seeing a market expansion.
Speaker 8: And it's not that surprising.
Speaker 14: When people take self driving cars, they tend to like
Speaker 14: them a lot. They're very reliable product, They're a nice
Speaker 14: private product, so you feel like you could have a
Speaker 14: private conversation. But at the same time, it doesn't seem
Speaker 14: to take away from people's interest in being driven by
Speaker 14: humans who can help with luggage or have a good conversations.
Speaker 8: So it really is a creative.
Speaker 3: This is a micro case study.
Speaker 2: It's one market San Francisco, but you know, the questions
Speaker 2: are is Lift gaining market share from Weimo in this
Speaker 2: city or is it that this is an issue of
Speaker 2: supply So because somebody cannot get into a Weimo within
Speaker 2: a reasonable timeframe, they go to the lift app, which
Speaker 2: is happening.
Speaker 8: I probably both, honestly, probably so interesting.
Speaker 14: Yeah, and I think this is such an interesting thing
Speaker 14: that's going to play out. My expectation over time is
Speaker 14: what will dominate will be the market expansion. And again,
Speaker 14: the reason is sort of simple. You have a cool
Speaker 14: new product coming onto an existing platform, and where we
Speaker 14: believe the hybrid now, which is you know, human driven
Speaker 14: cars plus avs really kind of creates the best possible
Speaker 14: welcome for everyone.
Speaker 8: But we'll know, we'll I'll have to see how that works.
Speaker 2: I think that you and I have discussed on several
Speaker 2: occasions the idea that the introduction of the robot taxi
Speaker 2: and maturity of the market expands the overall tam for
Speaker 2: ride hailing.
Speaker 3: Just recap that that argument.
Speaker 8: I think that's exactly it.
Speaker 14: So, I mean, look, people take just in the United States,
Speaker 14: about one hundred and sixty billion rides a year in
Speaker 14: their private cars.
Speaker 8: Okay, today we deliver a.
Speaker 14: Billion, maybe the other guys deliver two billion, So it's
Speaker 14: called that three billion and of one hundred and sixty billion.
Speaker 14: And it's a good experience. You're sitting in the backseat,
Speaker 14: you're able to text, you're able to have your own space.
Speaker 14: What holds it back, Well, for whatever reason, some people
Speaker 14: might want not want to be driven by another driver
Speaker 14: or someone else in the car. This takes that away.
Speaker 14: I'll tell you a very specific story. So I was
Speaker 14: just with an old friend of mine. I just ran
Speaker 14: intrew it into the airport. Her son had a tragic,
Speaker 14: tragic accident a couple of years ago, absolutely devastating physical accident.
Speaker 8: He's in rehabilitation.
Speaker 14: For him, the idea of getting in a self driving
Speaker 14: car where the doors open wide, maybe there's not even
Speaker 14: a driver there not there's thing wrong with that, but
Speaker 14: it just gives them more space to sort of be
Speaker 14: in his own zone is.
Speaker 2: Actually going to be a technology and an engineering story,
Speaker 2: design story.
Speaker 14: It's a design story exactly. And so so anyway, I'm
Speaker 14: very optimistic about this. And then when I look at
Speaker 14: our capabilities around fleet management and you know, kind of
Speaker 14: maagining supplying demand, I get really excited about the future.
Speaker 2: Lift is let's let's go back to the core business
Speaker 2: and then earnings. But Lift is pushing outside of the
Speaker 2: United States. You know, every time you've been on the
Speaker 2: show over the last year, there's been a development on
Speaker 2: that front. But what do we actually learn through your
Speaker 2: earnings about how you're growing x USA.
Speaker 8: So here's what's really cool.
Speaker 14: So Lift was primarily a domestic company up until about
Speaker 14: a year ago, maybe call it eighteen months ago. Then
Speaker 14: we started to expand in Canada. That's gone very well.
Speaker 14: Now we acquired a company called free Now and a
Speaker 14: couple of other smaller companies overseas.
Speaker 8: Okay, what's happened since then?
Speaker 14: We're in the process of transforming ourself to a truly
Speaker 14: global company. Some of that is internal stuff, back of
Speaker 14: the house, multi currency, GDPR, all these sorts of things,
Speaker 14: but we're also beginning to introduce new functionality to customers.
Speaker 14: So I was just in Barcelona a couple of weeks ago.
Speaker 14: It's very lucky to be there. I get a chance
Speaker 14: to check out on our beta app, the ability to
Speaker 14: use the Lift app, not a new app, but the
Speaker 14: Lift app to hail local supply local taxicab in Barcelona.
Speaker 14: I did it four times, work flawlessly, So good because
Speaker 14: I don't have to do a different app. I already
Speaker 14: know the user interface and self ref and s one
Speaker 14: for now. The company we required, they're also growing now
Speaker 14: too because of some of the innovation of the technology
Speaker 14: we've been able to add to their stack. So it's look,
Speaker 14: our service levels are really good and I love that
Speaker 14: about our product, and now we can take that to
Speaker 14: a more global audience and hopefully continue to grow as
Speaker 14: a result.
Speaker 2: How we you know, it could be Europe Spain specifically,
Speaker 2: but how are those markets different to the United States.
Speaker 2: How does the consumer behave differently?
Speaker 8: You know, there are.
Speaker 14: Subtle differences, I mean very significant, I guess difference not subtle.
Speaker 14: Is the role of the taxicab in a lot of
Speaker 14: Europe is very significant.
Speaker 2: You know, this culturally entrenched in many economies in Europe
Speaker 2: as an example, very much so.
Speaker 14: And unlike maybe in a New York where people almost
Speaker 14: begrudgingly take a cab, for example, but in a place like.
Speaker 3: Spain, and certain you're going to have New york Is
Speaker 3: phoning into this program now.
Speaker 14: And I get that, and I understand well, and New
Speaker 14: Yorkers have opinions about their taxi cabs, right, But in
Speaker 14: Spain it tends to be almost a career. You know,
Speaker 14: you get in the car and it's probably someone who's
Speaker 14: been doing it for many years, maybe his father did
Speaker 14: it as well. Certainly in London everyone knows that knowledge.
Speaker 8: I mean, it's a sort of incredible thing. So that's
Speaker 8: a really significant difference.
Speaker 14: And for us, it favors us because free now is
Speaker 14: strong in taxis and the sort of double click there
Speaker 14: is because tax is going to be quite regulated.
Speaker 8: The relationship that.
Speaker 14: That company and now our company has with governments tends
Speaker 14: to be quite strong, which back to the av question,
Speaker 14: really matters a lot. Babe, is new technology and for
Speaker 14: a lot of governments it feels maybe a little bit intimidating,
Speaker 14: and we can help there. So it's a really nice
Speaker 14: sort of set of circumstances that tends to sort of
Speaker 14: favor our business.
Speaker 2: In markets outside of the United States, Uber is already
Speaker 2: there in some cases, Bolt, etc. How are you going
Speaker 2: to make lifts different from a technology perspective or just
Speaker 2: a product perspective.
Speaker 8: Yeah, so stay tuned on this.
Speaker 14: This is actually a very very live conversation we're having internally.
Speaker 14: I can use some of the examples of the US
Speaker 14: maybe and give you a little sentace.
Speaker 8: So in the US, we've really redoubled.
Speaker 14: Our innovation and you know, some of these products Women
Speaker 14: plus connect and I've just heard that we've given over
Speaker 14: one hundred and seventy five million rides between women and
Speaker 14: women in the US over the last couple of years.
Speaker 8: Lift Teens, Lift Silver. This is real innovation.
Speaker 14: We're hoping to bring some of that innovation to the
Speaker 14: European space for sure. And then there's also a lot
Speaker 14: of conversation around you know, let's say, the reputation of
Speaker 14: those guys in Europe isn't necessarily super. People don't necessarily
Speaker 14: love the company. I'll just say it that way, and
Speaker 14: we hope we bring some joy.
Speaker 8: To the conversation as well.
Speaker 2: Internally, where is your biggest focus on the technology side?
Speaker 2: What are the types of people you're trying to bring
Speaker 2: in and things you're building? Rebuilding, code, migration, literally anything else?
Speaker 14: For sure, so many interesting things. So I'll give you
Speaker 14: a couple of examples. Some of it's basic, some of
Speaker 14: it's more far reaching. Here's the basic thing.
Speaker 8: We now pick people up on average.
Speaker 14: So seventy five percent of the time we will pick
Speaker 14: you up either the same or faster than our big competitor.
Speaker 12: OK.
Speaker 8: Why is that kind of a big deal?
Speaker 14: Because our market share is smaller, So doing that reliably
Speaker 14: twenty four hours a day, sevent day a week because
Speaker 14: people are busy, they want to get to where they are.
Speaker 14: That's an awesome accomplishment. I'm hugely proud of our marketplace
Speaker 14: team for accomplishing that.
Speaker 8: And then bigger picture, I'm really.
Speaker 14: Excited about lifteen, one of our newest products that allows
Speaker 14: teens to get in and get constant messaging back to
Speaker 14: their parents to make sure the parents know that they're.
Speaker 8: Safe and sound.
Speaker 14: It's just a good I look at this, it's almost
Speaker 14: a generational thing.
Speaker 8: A new car now costs like eight hundred bucks.
Speaker 14: It's going to be indred bucks a month, fifty on
Speaker 14: release space, plus maintenance, plus gas, all these sorts of things.
Speaker 14: Lift is just a better answer for a lot of people.
Speaker 14: And so I'm sort of excited when I look two, three, four,
Speaker 14: five years out at some of the kind of you know,
Speaker 14: teen innovation now, because I think that'll help change a
Speaker 14: whole generation.
Speaker 2: Lift CEO David Rishad, thank you very much for coming in.
Speaker 2: Thanks for being back on the show. Coming up, sports
Speaker 2: bedding platform Draftings is up next in the earnings conversation,
Speaker 2: Drafting CEO and co founder Jason Robbins is joining us.
Speaker 3: This is spoobag tech.
Speaker 10: Okay.
Speaker 3: Ending the week with more tech earnings.
Speaker 2: Draft Kings reported disappointing second quarter earnings amidst growing competition
Speaker 2: from new prediction market players like Cawshi, But there's some
Speaker 2: post momentum post World Cup setting up a pretty strong
Speaker 2: back half. Stock up seven and a half percent, on
Speaker 2: track for its best day since June twenty sixth, Drafting
Speaker 2: CEO and co founder Jason Robbins joins us. It's interesting,
Speaker 2: right Initially that was the reaction disappointment second quarter earnings.
Speaker 2: There were favorable sports outcomes, there was promotional spending, and
Speaker 2: then this morning, everyone you know, was like, actually, you
Speaker 2: know what, the World Cup seems to have some tailwind
Speaker 2: with it.
Speaker 3: Well, I think that really what you're seeing.
Speaker 15: Is that after having all the time to digest and
Speaker 15: hear some of the context, people understand how strong a
Speaker 15: position DraftKings is in from a business perspective. Right now,
Speaker 15: our core business contract to do about a billion dollars
Speaker 15: and adjusted EVA dead this year. You're just a few
Speaker 15: years ago we were losing money in that business. Now
Speaker 15: it's a very strong cash flow generator for us, and
Speaker 15: we see really strong traction on predictions, enormous growth over
Speaker 15: the last month or two, and the best time of
Speaker 15: year is about to come with you know, the fall season.
Speaker 3: And NFL and everything that that brings.
Speaker 2: Okay, bear with me, but apparently people were betting on
Speaker 2: whether you would say Calshi on the earnings call. Prediction
Speaker 2: markets are a factor. Just react to that, Jason, please, Well,
Speaker 2: I you know, making trades on whether someone is going
Speaker 2: to say something in earning's call. Probably isn't something that
Speaker 2: I think should be out there in my opinion, but
Speaker 2: nevertheless I understand it is.
Speaker 3: I didn't know that though I didn't read it. I
Speaker 3: don't remember. I don't think I said that.
Speaker 15: No, hopefully not too many people took the positive side
Speaker 15: of that one.
Speaker 2: Jason, can you just explain the World Cup, how it
Speaker 2: manifested for draftking, the behavior of people that went to
Speaker 2: DraftKings during it, and whether there is some momentum carried
Speaker 2: out of it for the second half of this year.
Speaker 15: I mean, World Cup on pretty much every metric that
Speaker 15: we look at, exceeded our expectations.
Speaker 3: We acquired more customers.
Speaker 15: That was both true of predictions but also true of
Speaker 15: our online sports betting business. We were way better than
Speaker 15: we expected. From an acquisition standpoint, we ended up having
Speaker 15: much more efficient acquisition to our cacs, we're twenty five
Speaker 15: percent lower than we expected.
Speaker 3: Total engagement was big.
Speaker 15: We had a really strong increase in mups as we
Speaker 15: published in our report. Also saw a really strong post
Speaker 15: World Cup engagement. Probably the most exciting thing to me,
Speaker 15: because you know, a lot of people were probably thinking
Speaker 15: us included this World Cup audience. Are they going to
Speaker 15: stick around or is it sort of come, you know,
Speaker 15: bet on the World Cup, trade on the World Cup
Speaker 15: and done not.
Speaker 3: At all the case.
Speaker 15: July, we actually saw a twenty percent handle increase after
Speaker 15: the World Cup ended, which is an enormous number compared
Speaker 15: to where we were going into it.
Speaker 3: So you're absolutely right.
Speaker 15: I think a lot of momentum coming out of the
Speaker 15: World Cup right going into our most important time of year.
Speaker 3: So it couldn't have been time better. And Jason very quickly.
Speaker 2: Those were people that went to Draft Kings maybe for
Speaker 2: the first time in the World Cup, and then stayed.
Speaker 15: A lot of them were a lot of them were
Speaker 15: people that had played previously and activated to continue to
Speaker 15: play afterwards. Remember after NFL and sometimes a lot of
Speaker 15: customers go dormant.
Speaker 3: So these big moments are.
Speaker 15: Really great opportunities to get people to engage with the
Speaker 15: product again. And you never know if they're going to
Speaker 15: drop off or not we see that sometimes or if
Speaker 15: they're going to continue. And at least for the World
Speaker 15: Cup audience, it seems like both the new customers and
Speaker 15: the ones who reactivated are all continuing to play through July,
Speaker 15: and I think coming into August and September, when we
Speaker 15: have our most busy time of year, it's going to
Speaker 15: only continue.
Speaker 2: Jason Imprediction Markets, the field of players seem very focused
Speaker 2: on how they communicate with the under twenty one category.
Speaker 2: What is Draft Kings policy and approach basically to marketing
Speaker 2: to that demographic quickly?
Speaker 15: Well, I think this is an important distinction distinction between
Speaker 15: DraftKings and some of these other companies out there. We
Speaker 15: are not as you see some of them doing marketing
Speaker 15: that you can pay your rent money and marketing to
Speaker 15: college campuses on attorneys and things like that. We are
Speaker 15: focusing on marketing to adults and positioning this as an
Speaker 15: entertainment product, which I think is the right way to
Speaker 15: do it. And you know, listen, those are things that
Speaker 15: right now are getting a little bit of scrutiny, and
Speaker 15: I think eventually they'll get rained in, but that's not
Speaker 15: up to us. But I do think it's something that
Speaker 15: we feel like we are really you know, as a
Speaker 15: long time trusted brand that's been out there for a
Speaker 15: long time and plays the long game and really understands,
Speaker 15: you know, it's not as much as it might get
Speaker 15: you short term volumes. That's not what you want to
Speaker 15: be doing in marketing on college campuses and things like that.
Speaker 2: Draft Kings Ce Jason Robbins, thank you very much for
Speaker 2: your time on Bloomberg Tech.
Speaker 3: Coming up.
Speaker 2: TikTok tweaked tis algorithm in twenty twenty one to stop
Speaker 2: users from being overwhelmed with harmful content, but it didn't
Speaker 2: roll out the safer version to everyone.
Speaker 3: We'll have that story next. This is Bloomberg Tech.
Speaker 2: The judge in New Mexico has ordered Meta to pay
Speaker 2: over five hundred million dollars and make changes to the
Speaker 2: way young people use its platforms following a landmark child
Speaker 2: safety case. The fine, which will be paid to a
Speaker 2: fund to address damages, is in addition to a three
Speaker 2: hundred and seventy five million dollar civil penalty from the case.
Speaker 2: Meta says it disagrees with the ruling and will appeal.
Speaker 2: Another story on the growing concerns about social media and
Speaker 2: mental health. In twenty twenty one, TikTok tweaked its algorithm
Speaker 2: to stop users from being overwhelmed with harmful content, but
Speaker 2: not every user got the update, according to an internal document,
Speaker 2: to see if the change might reduce the apps stickiness.
Speaker 2: The company kept ten percent of users, or about fifteen
Speaker 2: million people on the old version. That control group included
Speaker 2: sixteen year old Chase Nascar. TikTok's algorithm pushed him thousands
Speaker 2: of videos about suicide, sadness, and loneliness right up until
Speaker 2: he took his own life. This is a difficult story,
Speaker 2: but it's an important story that Bloomberg's Olivia Carvill reported
Speaker 2: for Bloomberg Business Week, and Olivia's with us. Now take
Speaker 2: us inside the reporting. I outlined the basics of the backstory,
Speaker 2: but it is both a technology story on the algorithm
Speaker 2: side and a policy decision by the company.
Speaker 6: That's right ed.
Speaker 8: I mean.
Speaker 7: To understand the story, you have to understand the timeline,
Speaker 7: and it really begins back in February of twenty twenty two,
Speaker 7: when a sixteen year old boy named Chase Neske died
Speaker 7: by suicide in Long Island. After that, his mum was
Speaker 7: trying to understand what had happened to Chase because because
Speaker 7: he had no mental health issues, he had never been.
Speaker 6: Diagnosed with depression.
Speaker 7: He had a big group of friends, he was an
Speaker 7: honors student at school, happy, friendly, bubbly, energetic, So she
Speaker 7: wanted to understand what had happened to Chase, and she
Speaker 7: went searching for clues on social media. When she gained
Speaker 7: access to his TikTok account, she was shocked at what
Speaker 7: she saw, which was a non stop stream of really
Speaker 7: sad videos, many of them encouraging suicide. So a year
Speaker 7: after Chase's death, I write a story for Business Week
Speaker 7: about his account and the algorithm was feeding him, and
Speaker 7: when I reached out to the company for comment, it
Speaker 7: resulted in this internal review that we're only just understanding now.
Speaker 7: This was an internal confidential document that outlines how the
Speaker 7: company essentially analyzed Chase's watch history in extraordinary detail what
Speaker 7: he saw in the weeks, days, and hours leading up
Speaker 7: to his death, and it confirmed from the company's perspective
Speaker 7: that he fell into a filter bubble. This is like
Speaker 7: an online echo chamber of sad content. And it tells
Speaker 7: us why that happened, which is because TikTok was running
Speaker 7: an experiment on filter bubble prevention strategies and it withheld
Speaker 7: a safety feature from fifteen million US users and Chase
Speaker 7: was included in that control group.
Speaker 2: Find this difficult, sorry, Olia distill be explicit on TikTok's response,
Speaker 2: in so far as like, what is it they've changed
Speaker 2: okay in response to the report, and officially what it
Speaker 2: is they gave you in response to the report.
Speaker 7: So within within this review, the company's own employees talk
Speaker 7: about how the control group was two big. It shouldn't
Speaker 7: have been set at ten percent. It should reduce the
Speaker 7: control group down to one percent of users and reduce
Speaker 7: the length of time they would be exposed to this
Speaker 7: kind of non stop content about problematic or harmful issues
Speaker 7: like extreme dieting or in Chase's case, suicide and depression.
Speaker 7: So they wanted to reduce not only the size of
Speaker 7: the control group, but also the length of exposure. So
Speaker 7: it went from half a year to a full year
Speaker 7: down to just seven days, and from ten percent of
Speaker 7: users or fifteen million people down to just one percent
Speaker 7: of users.
Speaker 6: And they made that change.
Speaker 7: Right around when they understood what had happened to Chase's
Speaker 7: account that is outlined in the document. In response to
Speaker 7: this story, the company did provide a written statement saying
Speaker 7: that they are deeply committed to the safety and well
Speaker 7: being of users, and their hearts break for any family
Speaker 7: that's experienced a tragic loss. They pointed to other safety
Speaker 7: features they've rolled out to try and protect the teenagers.
Speaker 2: Bloomberg's Olivia Carville, it is a must read, a difficult
Speaker 2: read in Bloomberg BusinessWeek.
Speaker 3: Thank you very much.
Speaker 2: That does it for this edition of Bloomberg Tech. Do
Speaker 2: not forget to check out the podcast recap all of
Speaker 2: the reporting and conversations we've had today, this Friday, but
Speaker 2: also throughout the week from San Francisco.
Speaker 3: This is Bloomberg Tech.