WEBVTT - Trump's Indictment and EV Competition 0:00:01.440 --> 0:00:06.680 From Hart of where Innovation, Money Empower, Colne in Silicone Valley, NBR. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow 0:00:24.200 --> 0:00:26.239 and Caroline Hide of Bloomberg's World t head quarters in 0:00:26.239 --> 0:00:29.000 New York and Imed Ludlow in San Francisco. This is 0:00:29.040 --> 0:00:31.800 Bloomberg Technology coming up. We will bring you the latest 0:00:31.840 --> 0:00:34.120 headlines in the world of technology, the run up in 0:00:34.159 --> 0:00:36.519 the stocks, but also of course Donald Trump as he 0:00:36.600 --> 0:00:40.040 prepares to surrender to law enforcement officers in Lower Manhattan, 0:00:40.800 --> 0:00:43.199 and a deep dive into the world of electric vehicles. 0:00:43.240 --> 0:00:46.080 This GM seeks to grow its market share. We discussed 0:00:46.080 --> 0:00:49.360 with GM's North America president, Steve Carlisle, and we'll speak 0:00:49.360 --> 0:00:52.520 to legendary athlete entrepreneur in fact he does everything nowadays, 0:00:52.520 --> 0:00:55.880 Shaquille O'Neill, who's expanding his global empire in a partnership 0:00:55.920 --> 0:00:59.280 with Genius Brands, discussed the announcement and so much more 0:00:59.360 --> 0:01:02.960 throughout this all eyes on technology, all eyes on the markets, 0:01:02.960 --> 0:01:05.240 all eyes on the NASDAC off by half a percentage 0:01:05.280 --> 0:01:07.640 point on the day, ed interesting moves that we get. 0:01:07.680 --> 0:01:10.600 Also across the banking index, we're seeing big banks under 0:01:10.600 --> 0:01:13.200 pressure off by more than two at one point more 0:01:13.240 --> 0:01:15.160 than three percent. We worry about the future of the 0:01:15.200 --> 0:01:20.319 banking surviva overall sustainability at the moment. How strong is 0:01:20.560 --> 0:01:22.360 the financial world at the moment? We hear from the 0:01:22.400 --> 0:01:25.400 likes of Jamie Diamond in his annual letter really talking 0:01:25.440 --> 0:01:27.479 that perhaps this isn't over yet. In terms of crisis 0:01:27.480 --> 0:01:29.319 of confidence. We see two year yield actually a bid 0:01:29.319 --> 0:01:31.839 coming is significantly to the two year bond market eleven 0:01:31.880 --> 0:01:34.160 basis points on the downside that coming as we see 0:01:34.200 --> 0:01:36.319 some weakness finally in the job market in the United 0:01:36.360 --> 0:01:38.959 States that jolts data showing the openings are coming back 0:01:39.000 --> 0:01:40.840 a little bit. Moving on, Let's look at what key 0:01:40.920 --> 0:01:44.080 arriskasset that seems to be moving away from tech stocks. 0:01:44.120 --> 0:01:46.720 We're still up on Bitcoin, up one and a half percent, 0:01:46.800 --> 0:01:48.720 even as we see tex stocks on the downside. Ed 0:01:48.800 --> 0:01:51.200 dig into the micro Yeah, we kind of turned a 0:01:51.240 --> 0:01:53.320 corner on the NAZAC one hundred in the last hour. 0:01:53.520 --> 0:01:56.760 Many few move is actually moving to the upside. Alphabet 0:01:56.760 --> 0:01:58.680 pair of Google is one Tesla on track for its 0:01:58.680 --> 0:02:01.440 worst two day drop since the start of the year. 0:02:01.480 --> 0:02:04.120 The first two sessions of twenty twenty three. Virgin Orbit 0:02:04.120 --> 0:02:06.600 down twenty two percent. A parsay is that it has 0:02:06.640 --> 0:02:08.920 now filed for bankruptcy, which will dig into later in 0:02:08.960 --> 0:02:11.240 the show. Bull Frog might be a new name to us. 0:02:11.240 --> 0:02:13.680 Bull Frog AI up twenty five percent. It had been 0:02:13.760 --> 0:02:16.520 up more than one hundred percent in the session. Caroline 0:02:16.600 --> 0:02:19.960 on a licensing patch with JOHNS Hopkins the University. Going 0:02:20.000 --> 0:02:22.400 to dig into that one later in the program as well. 0:02:22.520 --> 0:02:26.280 We're tracking the special Purpose Acquisition Company which is due 0:02:26.280 --> 0:02:30.320 to take True Social public The Trump backs conservative social 0:02:30.320 --> 0:02:34.000 media platform actually interesting over the last five days, markedly 0:02:34.160 --> 0:02:37.120 higher as the attention has been on former President Trump. 0:02:37.160 --> 0:02:39.520 We're going to cover that story in just one moment's time, 0:02:39.680 --> 0:02:41.800 but we're pretty sharp be lower in the session. It 0:02:41.880 --> 0:02:44.280 has failed to file its ten K and the some 0:02:44.320 --> 0:02:47.000 accounting work that needs to go on there. But interesting 0:02:47.000 --> 0:02:49.960 the focus on conservative social media platforms right now because 0:02:49.960 --> 0:02:52.040 of what's happening in New York. And we're soon going 0:02:52.040 --> 0:02:54.560 to get just outside the Supreme Court of New York 0:02:54.600 --> 0:02:56.560 in a moment. But first let's dig into the top 0:02:56.560 --> 0:03:00.200 performing stock funds. What they say about tech stocks them 0:03:00.639 --> 0:03:02.920 up in the risk ratty that we've seen many saying 0:03:02.919 --> 0:03:05.800 it's gone too far Meanwhile, JP Mulgan structures Marko Klonovitch. 0:03:05.880 --> 0:03:08.120 He's saying, the first goal to stock ratty is just 0:03:08.560 --> 0:03:11.000 the come before the storm. Let's stick into it. None 0:03:11.000 --> 0:03:14.160 of them bring bags, Katie Greifeld, the rally in tech 0:03:14.560 --> 0:03:18.320 has some naysayers now Mike Wilson yesterday, and now some 0:03:18.440 --> 0:03:21.919 key fund managers too. Yeah. The thing is, you've heard investors, 0:03:21.919 --> 0:03:24.880 you've heard strategists say that this isn't something that you 0:03:24.919 --> 0:03:27.960 want to touch. That basically, stocks have been sort of 0:03:27.960 --> 0:03:30.480 operating in their own reality, and when you think about 0:03:30.520 --> 0:03:32.720 all of the issues that were still issues. But then 0:03:32.760 --> 0:03:36.440 if we think back before the banking crisis higher for longer, 0:03:36.480 --> 0:03:38.920 we know that sort of the optimism that maybe this 0:03:38.960 --> 0:03:42.400 would cause the FED to pivot was fueling tech socks 0:03:42.480 --> 0:03:44.480 for a while for the bulk of March. But now 0:03:44.520 --> 0:03:46.960 you're in a situation where you have the FED officials 0:03:47.000 --> 0:03:49.040 from the top down really saying that we have a 0:03:49.040 --> 0:03:51.520 lot more wood to chop. There's a lot more to 0:03:51.720 --> 0:03:54.839 go here to really get inflation under control, and that's 0:03:54.880 --> 0:03:58.120 still an issue for these big tech names. Katie, with 0:03:58.200 --> 0:04:00.400 three tenths of a percent lower on the NASA one hundred, 0:04:00.400 --> 0:04:02.520 but the run up and stocks this year, it is 0:04:02.600 --> 0:04:04.760 megacap tech and tech that's been driving it. And as 0:04:04.800 --> 0:04:07.320 we think about the FED, it's tech that's firmly in 0:04:07.400 --> 0:04:10.560 focus on why we're making those bets exactly. And I 0:04:10.600 --> 0:04:12.800 mean you've seen this in a few different notes across 0:04:12.880 --> 0:04:15.720 Wall Street tourists and Slot from Apollo pointing it out 0:04:15.720 --> 0:04:17.919 today that if you look under the surface of the rally, 0:04:17.960 --> 0:04:20.920 it's a handful of names that's really driving it. It's 0:04:20.920 --> 0:04:24.119 those megacap tech names to your point ed. But again, 0:04:24.160 --> 0:04:26.840 if you bring it back into the macro situation, where 0:04:27.080 --> 0:04:29.440 you do have a FED that's going to raise interest 0:04:29.560 --> 0:04:32.960 rates here, that would become a problem for other parts 0:04:33.160 --> 0:04:35.960 of the sector. Maybe rising interest rates aren't as much 0:04:35.960 --> 0:04:38.479 of a problem for Amazon as they are for something 0:04:38.520 --> 0:04:42.280 like Virgin Orbit, for example, but even still that is 0:04:42.320 --> 0:04:45.400 a problem. And you now have a much more expensive 0:04:45.720 --> 0:04:48.640 tech sector than you did perhaps a few months ago, 0:04:48.839 --> 0:04:51.920 particularly twenty four times future earnings over in Europe. It's 0:04:51.960 --> 0:04:54.640 not just a US rally we're seeing in technology. But 0:04:55.160 --> 0:04:57.200 look at the Jolts data. Can you bring us back 0:04:57.200 --> 0:05:00.240 to the economic perspective, because that seems to signal maybe 0:05:00.240 --> 0:05:02.280 inflation isn't going to run so rampant. There's the thing. 0:05:02.279 --> 0:05:04.200 And if you look at today's price action, sort of 0:05:04.200 --> 0:05:06.760 the bond market is reacting how you would expect. You 0:05:06.800 --> 0:05:09.520 have two year treasury yields, which are most sensitive to 0:05:09.640 --> 0:05:13.480 rate expectations, down eleven basis points. But then you also 0:05:13.839 --> 0:05:16.359 have tech down. And if you follow the logic that 0:05:16.600 --> 0:05:19.120 you know, some of the balls on tech have been spinning, 0:05:19.120 --> 0:05:21.400 which is that lower rates would be good for tech. 0:05:21.720 --> 0:05:24.200 That doesn't seem to hold water today. So maybe you're 0:05:24.200 --> 0:05:26.680 seeing some cracks in the armor of that ball case. 0:05:27.120 --> 0:05:29.279 Quite often, the bond market and the equity market don't 0:05:29.320 --> 0:05:32.120 always seem to agree. Katie Greifeld. You can catch up 0:05:32.160 --> 0:05:33.919 so much more with her a little bit later in 0:05:33.960 --> 0:05:37.279 programming that. Let's talk now about former President Donald Trump 0:05:37.320 --> 0:05:40.040 preparing to surrender to authorities in New York City. His 0:05:40.200 --> 0:05:43.960 arraignment scheduled for two fifteen pm Easton and Lower Manhattan. 0:05:44.240 --> 0:05:47.640 Trance lawyer saying he will plead not guilty. Quote very 0:05:47.640 --> 0:05:50.919 loudly and proudly. Let's get out to bring Mexamory Horden, 0:05:50.960 --> 0:05:54.279 who is outside New York's Supreme Court. It is getting 0:05:54.279 --> 0:06:01.680 busy there, Yeah, it certainly is just the park across 0:06:02.120 --> 0:06:04.560 from the Supreme New York State Supreme Court. You have 0:06:04.960 --> 0:06:07.359 probably a little bit over a thousand protesters. Some of 0:06:07.360 --> 0:06:10.599 them are here in support of the former president and 0:06:10.720 --> 0:06:12.800 against these charges, and some of them are here for 0:06:13.000 --> 0:06:15.880 the charges and against the former president. And there was 0:06:15.960 --> 0:06:18.800 moments where actually there was physical altercations. We also had 0:06:19.120 --> 0:06:22.880 Congresswoman Marjorie Taylor Green, which represents a district in Georgia. 0:06:22.960 --> 0:06:25.000 She was here for about ten minutes time. Very hard 0:06:25.040 --> 0:06:26.800 to hear her though, because if you can hear now, 0:06:27.160 --> 0:06:30.360 these bells, these whistles, drums, they were all going on 0:06:30.440 --> 0:06:33.599 because those anti Trump supporters, they were the ones that 0:06:33.600 --> 0:06:36.400 were year wanting to drown her out. All the action 0:06:36.520 --> 0:06:38.280 is going to be taking place in a little over 0:06:38.360 --> 0:06:40.880 two hours time. The president, as you said, Caroline, won't 0:06:40.880 --> 0:06:43.560 be turning himself in, and then at two fifteen there 0:06:43.600 --> 0:06:46.440 will be that arrangement. Already you are hearing helicopters around 0:06:46.440 --> 0:06:49.440 Lower Manhattan. Former president will be making his way here 0:06:49.600 --> 0:06:53.279 from Trump Tower to the Court House. We should note 0:06:53.360 --> 0:06:56.679 this indictment is still under seal, so a lot of questions, 0:06:56.680 --> 0:06:58.760 but the reports are that there's more than two dozen 0:06:58.800 --> 0:07:02.400 felony charges. And then after his arrangement and all the 0:07:02.440 --> 0:07:05.080 paperwork that has done and the fingerprinting, the president is 0:07:05.080 --> 0:07:07.400 going back to morrow Agle to give a primetime address 0:07:07.640 --> 0:07:10.240 this evening. Remember this is not just a former president, 0:07:10.560 --> 0:07:13.239 This is the leader for the Republican Party in terms 0:07:13.240 --> 0:07:16.440 of the front runner of the twenty twenty four presidential election. 0:07:17.280 --> 0:07:19.800 All right, Bloomberg xam Reharden low mana and thank you. 0:07:19.800 --> 0:07:22.120 We learned twenty four hours ago, Caroline that the judge 0:07:22.200 --> 0:07:26.679 is barring broadcasters from broadcasting the arrangement, but will follow 0:07:26.720 --> 0:07:38.440 the headlines as they come through. Tesla increased shipments in 0:07:38.480 --> 0:07:40.800 March from its plant in Shanghai is the evmaker is 0:07:40.840 --> 0:07:44.000 wrapping up a record quarter of vehicle deliveries. That's according 0:07:44.000 --> 0:07:47.520 to prelim data from China's Passenger Car Association. The jump 0:07:47.760 --> 0:07:51.880 in wholesale deliveries to dealers follows Tesla slashing prices of 0:07:52.000 --> 0:07:54.720 its locally made these by as much as fourteen percent 0:07:55.000 --> 0:07:57.560 at the beginning of the year and triggering a slew 0:07:57.600 --> 0:08:01.480 of discounts and incentive offerings from other carmakers. Companies that 0:08:01.520 --> 0:08:05.000 followed suit range from Chinese ev startups expong NEO to 0:08:05.120 --> 0:08:09.800 international manufacturers like Vogswagen, Mercedes, Benz and Ford. Now Tesla's 0:08:09.840 --> 0:08:13.280 monthly wholesale figures in China, they're probably a better indication 0:08:13.320 --> 0:08:16.920 of production rather than deliveries because they're not deliveries direct 0:08:16.960 --> 0:08:21.160 to consumers. However, actual Tesla global delivery figures Caroline hit 0:08:21.200 --> 0:08:24.560 a new record over the weekend, but still falling short 0:08:24.600 --> 0:08:28.360 of musks target fifty cent annual growth. And it's interesting, 0:08:28.400 --> 0:08:30.640 isn't We're trying to get a full picture of where 0:08:30.680 --> 0:08:33.680 ev demand is. Is it remaining with Tesla? Is it 0:08:33.760 --> 0:08:36.280 going to rivals? Is it just generally down on the 0:08:36.280 --> 0:08:38.440 fact that the economy is slowing somewhat? And we asked 0:08:38.440 --> 0:08:40.680 our audience yesterday, we went to you, went to Twitter, 0:08:40.760 --> 0:08:43.240 We asked you our usual daily pole, this time ask 0:08:43.320 --> 0:08:46.560 you look demand for Tesla evis is is it going 0:08:46.600 --> 0:08:48.760 to rivals? For thirty seven percent of you say it is? 0:08:49.160 --> 0:08:51.360 Is it by the economy? Only about a quarter of 0:08:51.400 --> 0:08:54.160 you think that, But actually thy nine percent pretty optimistic. 0:08:54.200 --> 0:08:56.360 They still think we're still full on in terms of 0:08:56.400 --> 0:08:59.440 demand for Tesla. What then of the rivals? What then 0:08:59.480 --> 0:09:02.880 of the bill up in av sales coming from other companies? 0:09:02.920 --> 0:09:05.160 Steve Carla Lampiece to say, is with us to discuss 0:09:05.320 --> 0:09:08.720 the outlook from General Motors is executive vice president of course, 0:09:08.800 --> 0:09:12.480 also the North American president, and recently updating the market 0:09:12.520 --> 0:09:16.400 on your sales basically including what twenty thousand evs that 0:09:16.440 --> 0:09:19.520 you've been selling. How do you see the market share 0:09:19.880 --> 0:09:22.840 for GM at the moment, Well, the market share overall, 0:09:22.880 --> 0:09:26.480 we had a pretty terrific quarter overall, including internal combustion. 0:09:26.559 --> 0:09:30.200 We finished on top of the market in terms of 0:09:30.200 --> 0:09:32.120 retail as well as fleet. We're very proud of that. 0:09:32.200 --> 0:09:34.960 But to the pointier question, it's the first quarter that 0:09:35.000 --> 0:09:39.199 we broke through twenty thousand electric vehicle sales. So and 0:09:39.600 --> 0:09:42.560 that comes in a year where we see it as 0:09:42.600 --> 0:09:45.160 a breakout opportunity for us. And the reason that I 0:09:45.240 --> 0:09:49.560 say that is our ultium battery plants are just coming 0:09:49.559 --> 0:09:54.400 online in Lordstown, Ohio, and then later on in spring 0:09:54.480 --> 0:09:57.440 Hill in Tennessee and then in Michigan at the same 0:09:57.480 --> 0:10:00.720 time as we start to increase production of Catalanc Lyric 0:10:00.800 --> 0:10:05.360 and the Hummer truck and suv, and we have several 0:10:05.400 --> 0:10:08.199 launches right behind that. So we see it as assigned 0:10:08.240 --> 0:10:11.439 to come dig in the lyrics sales less than a thousand. Yeah, 0:10:11.840 --> 0:10:14.720 what was it? Two Hammer EV pickups in the quarter? 0:10:15.080 --> 0:10:18.800 When did these numbers become really real, really tangible. Very soon? 0:10:19.000 --> 0:10:22.360 We're starting to see a Lyric shipments from the factory 0:10:22.360 --> 0:10:26.240 and in the pipeline increased dramatically, and then beyond that, 0:10:26.640 --> 0:10:30.160 we have a very solid order bank in committed customers 0:10:30.200 --> 0:10:36.719 in the thousands. So I'm very excited about that that opportunity. 0:10:36.640 --> 0:10:40.600 As Steve Caroline asked a key point, which is within 0:10:40.679 --> 0:10:43.320 that twenty thousand EV number, a lot of that was 0:10:43.400 --> 0:10:47.040 Chevy Bolt. It doesn't reflect the new models. Give me granularity, 0:10:47.280 --> 0:10:50.560 Give me numbers on the production output currently for the 0:10:50.640 --> 0:10:55.319 next gen Altium models and how that ramped through the year. Well, 0:10:55.360 --> 0:10:58.480 if I take the twenty thousand that we did in 0:10:58.480 --> 0:11:01.079 the first quarter, we see that growing to fifty thousand 0:11:02.160 --> 0:11:04.880 by the end of June and then doubling again by 0:11:04.920 --> 0:11:08.480 the end of the year, and the growth within that 0:11:08.520 --> 0:11:12.080 will be one hundred percent plus of Lyric and Hummer 0:11:12.120 --> 0:11:16.280 and Blazer and Equinox and and beyond that Bolt and Bolt. 0:11:16.280 --> 0:11:19.240 TUV has done a tremendous job for us, particularly in 0:11:19.280 --> 0:11:22.840 the affordable EV part of the market. But where we 0:11:22.880 --> 0:11:26.400 see the huge volume opportunities in the in the latter 0:11:26.440 --> 0:11:30.280 products that I mentioned, and that that continues to grow 0:11:29.800 --> 0:11:33.720 into into twenty four where we see ourselves, uh you know, 0:11:33.720 --> 0:11:35.640 at the end of that timeframe kind of into the 0:11:35.679 --> 0:11:39.040 million range. So but just to scale it another, growing 0:11:39.040 --> 0:11:42.240 to fifty thousand in the second quarter and then two 0:11:42.240 --> 0:11:44.960 one hundred by the end of the year. And see 0:11:45.080 --> 0:11:48.760 to be cleared that fifty thousand to one hundred thousand, 0:11:48.800 --> 0:11:52.160 that's driven by new generation models, not just a ramping bolt, 0:11:52.280 --> 0:11:55.120 that's correct. It's driven by LTIAM based models late Lyric 0:11:55.160 --> 0:11:57.680 and Hummer and Blazer and Equinox and so on. Yes, 0:11:58.720 --> 0:12:03.720 Steve taking market share from Tesla, well, we believe so. 0:12:03.920 --> 0:12:06.200 We're our share of the EV market has grown to 0:12:07.280 --> 0:12:10.320 eight or nine percent just in the past several months. 0:12:10.360 --> 0:12:13.199 And as we look at the share of our competitors, 0:12:13.400 --> 0:12:16.320 including Tesla, where we would appear to be gaining across 0:12:16.360 --> 0:12:19.880 the board, and we see that in our reservations and 0:12:19.960 --> 0:12:22.040 our trade ins I mentioned Lyric, When we look at 0:12:22.040 --> 0:12:25.439 trades and in the like of that, we see a 0:12:25.480 --> 0:12:29.280 preponderance of our competitors in that mix. So a lot 0:12:29.320 --> 0:12:32.160 of plus business for general motor particularly in markets where 0:12:32.200 --> 0:12:37.400 we've been admittedly challenged, the so called smile states, including California, 0:12:37.720 --> 0:12:40.480 where we appear to be over indexing when it comes 0:12:40.520 --> 0:12:42.880 to EV sales. And that comes at the expense of 0:12:42.920 --> 0:12:45.600 some of those that we've just talked about. And that's 0:12:45.600 --> 0:12:48.520 the next question, isn't it, Caroline. We're thinking about the 0:12:48.559 --> 0:12:53.120 impacts of regulation, the impacts of government here. Steve just said, 0:12:53.200 --> 0:12:55.960 California is where all the energies at. So what happens 0:12:55.960 --> 0:12:58.920 when the IRA kicks him? Right? Yeah? Inflation Reduction Act? 0:12:58.960 --> 0:13:02.000 What does that mean in terms of well, people's ability 0:13:02.040 --> 0:13:04.040 to be able to form more calls? But ultimately, Steve, 0:13:04.360 --> 0:13:07.920 what about commercial vehicles here as well? Because you've got 0:13:07.960 --> 0:13:10.040 bright drop the electric commercial vans. Is that in any 0:13:10.080 --> 0:13:12.720 way going to help by the government focus on the 0:13:12.760 --> 0:13:14.920 IRA in particular, Yeah, for sure, And just to back 0:13:15.000 --> 0:13:18.000 up in California, I use that as an example. That's 0:13:18.000 --> 0:13:20.640 true across the country in terms of how we're over 0:13:20.800 --> 0:13:23.400 over indexing. But when it comes to IRA, we feel 0:13:23.440 --> 0:13:27.040 as though we're very well positioned, including the announcements that 0:13:27.040 --> 0:13:28.920 we're made late in the week last week. And the 0:13:28.920 --> 0:13:30.960 reason that I say that is how we've sourced the 0:13:31.080 --> 0:13:34.760 battery raw materials and the processing and the post processing. 0:13:34.840 --> 0:13:37.679 So we feel as though most of our models will 0:13:37.720 --> 0:13:41.400 qualify for that treatment, which can only help the demand side, 0:13:41.760 --> 0:13:44.120 including on the commercial side of the business. We've had 0:13:44.320 --> 0:13:48.200 very good uptake on the bright Drop business, for instance, 0:13:48.200 --> 0:13:51.400 and you know we're looking forward to we're down on 0:13:51.440 --> 0:13:54.880 that plant right now retooling for even higher volumes. So 0:13:55.200 --> 0:13:57.840 we see terrific opportunity there and talk to us about 0:13:57.880 --> 0:14:02.400 ramp about volumes, about shortages, particularly in chips that many 0:14:02.440 --> 0:14:05.440 auto companies faced. Well, the chip situation, i'd say is 0:14:05.440 --> 0:14:08.360 normalized to a great degree. We still get in and 0:14:08.360 --> 0:14:10.240 out of that on a day to day basis or 0:14:10.280 --> 0:14:13.719 a week to week basis. But our availability, if I 0:14:14.000 --> 0:14:18.199 measured in percent of production last year, if we ran 0:14:18.360 --> 0:14:22.040 kind of in the hi eighties low nineties of available capacity, 0:14:22.320 --> 0:14:24.480 we're much closer to one hundred this year. And that's 0:14:24.480 --> 0:14:27.640 a reflection and it's a mix now. It's gone beyond chips, 0:14:27.960 --> 0:14:31.680 logistics factors in to a much greater degree this year. 0:14:31.800 --> 0:14:34.960 So it's just those challenges that we managed day to day, 0:14:35.040 --> 0:14:36.880 which is why you know, we're pretty happy with our 0:14:36.920 --> 0:14:39.920 performance so far, and that we can continue to gain share, 0:14:40.000 --> 0:14:44.680 whether it's internal combustion engines or electric vehicles, particularly as 0:14:44.680 --> 0:14:48.520 we're in this very rich launch Cadence Steve are coming 0:14:48.520 --> 0:14:50.840 off a strong quarter for new US car sales, right 0:14:50.840 --> 0:14:55.400 there's evidence there was pent up demand, higher rates, concern 0:14:55.480 --> 0:14:58.240 about the duress the consumers. Under what is kind of 0:14:58.240 --> 0:15:02.720 GM's economic outlook for the rest of the year. We'll 0:15:02.720 --> 0:15:06.720 speak directly to the to the industry. We see we 0:15:06.840 --> 0:15:10.560 finished the third quarter kind of in the fifteen point 0:15:10.600 --> 0:15:13.800 three million unit range, and we would see that holding 0:15:14.440 --> 0:15:17.880 in perhaps accelerating a little bit through the through the 0:15:17.960 --> 0:15:20.600 end of the year. At the same time as transaction 0:15:20.640 --> 0:15:25.640 prices are also holding, incentives are staying at moderate levels. 0:15:26.200 --> 0:15:31.720 Dealer grosses appear to be stable, used car prices stable, 0:15:32.200 --> 0:15:34.880 so all those ingredients to continue on a glide path 0:15:34.960 --> 0:15:39.160 of good performance we see there. So uh, you know, 0:15:39.240 --> 0:15:41.760 we're anxious to see what we see through the first 0:15:41.800 --> 0:15:44.880 quarter is to help inform what we see through the 0:15:44.920 --> 0:15:47.520 rest of the year. But in that on top of 0:15:47.600 --> 0:15:50.440 we have some terrific launches, as I've mentioned, whether it's 0:15:50.440 --> 0:15:54.200 internal combustion or evs. So we're feeling pretty good about 0:15:55.000 --> 0:15:59.640 twenty twenty three, Steve called out General Moss, Executive Price 0:15:59.640 --> 0:16:02.560 President North America present out in New York, Caroline, thank 0:16:02.560 --> 0:16:05.000 you for your time. Now coming up, Apple and Walmart 0:16:05.160 --> 0:16:08.640 slash in jobs while Virgin Orbit files for bankruptcy. We'll 0:16:08.640 --> 0:16:11.840 bring you the details in Talking Tech next versus Bloomberg. 0:16:31.560 --> 0:16:34.000 Time now for Talking Tech Today, We're honing in on 0:16:34.120 --> 0:16:37.160 job cuts. First up, Walmart cutting at least two thousand 0:16:37.280 --> 0:16:40.920 jobs at five US e commerce fulfillment centers that, according 0:16:40.960 --> 0:16:43.640 to regulatory fighting to The losses include more than one 0:16:43.680 --> 0:16:46.880 thousand positions at a center in Texas, six hundred jobs 0:16:46.880 --> 0:16:49.760 in Pennsylvania at a warehouse, four hundred in Florida, and 0:16:49.760 --> 0:16:52.600 about two hundred in New Jersey. And additional reduction is 0:16:52.640 --> 0:16:57.120 planned in California. And Walmart isn't alone. Apple also making cuts, 0:16:57.160 --> 0:17:00.320 eliminating a small number of roles within its co operate 0:17:00.400 --> 0:17:03.600 retail teams that according to sources, this marks the first 0:17:03.720 --> 0:17:06.640 known internal job cuts since it embarked on a belt 0:17:06.680 --> 0:17:09.720 tightening effort last year. The company is shedding positions in 0:17:09.760 --> 0:17:13.080 what it calls its development and preservation teams. Those groups 0:17:13.080 --> 0:17:16.199 are responsible for the construction and upkeep really of Apple 0:17:16.280 --> 0:17:20.200 retail stores and other facilities around the world. Finally, Virgin Orbit, 0:17:20.600 --> 0:17:23.919 the satellite launch firm tied to British billionaire Wshar Branson, 0:17:24.000 --> 0:17:27.080 failed to secure the funding needed to keep operating and 0:17:27.640 --> 0:17:30.399 has filed for bankruptcy. Virgin Orbit had cut about eighty 0:17:30.400 --> 0:17:33.240 five percent of its staff. The company listed two hundred 0:17:33.240 --> 0:17:35.840 and forty three million dollars in assets and one hundred 0:17:35.840 --> 0:17:38.520 and fifty three point five million for its total debt 0:17:38.640 --> 0:17:42.680 in a Chapter eleven petition filed in Delaware Caroline. Now, 0:17:42.760 --> 0:17:45.400 let's just shift gears a little bit time for Wall 0:17:45.440 --> 0:17:47.760 Street Beat, and today we are focusing in on Jamie 0:17:47.840 --> 0:17:50.679 Diamond's annual letter to shareholders, because not only did he 0:17:50.720 --> 0:17:53.760 talk about banking collapses, he also talked a lot about tech, 0:17:53.800 --> 0:17:56.679 a lot about chat chypt and let's run through it 0:17:56.760 --> 0:18:00.040 all with Brilian Motionali Bassett. First, let's talk about the 0:18:00.119 --> 0:18:03.040 banking implications, because we see big banks down once again 0:18:03.080 --> 0:18:06.119 on the day. Absolutely he talked about things hiding in 0:18:06.240 --> 0:18:08.760 plain sight. He mentioned that in terms of Silicon Valley Bank, 0:18:08.800 --> 0:18:12.320 but also Credit Squeez. Remember this rising interest rate environment 0:18:12.320 --> 0:18:14.719 has posed a lot of different risk for banks that 0:18:14.760 --> 0:18:17.720 have seen deposit bases. Now we are paying attention to 0:18:17.800 --> 0:18:20.880 this year, but really the deposit base across America's banks 0:18:20.880 --> 0:18:23.240 have been reduced by about a trillion dollars since twenty 0:18:23.280 --> 0:18:25.800 twenty two, and so a lot of pressure when you 0:18:25.840 --> 0:18:28.400 look at the smaller banks, in particular, of which JP 0:18:28.520 --> 0:18:31.120 Morgan banks three hundred and fifty of more than four 0:18:31.200 --> 0:18:35.800 thousand in this country alone. Hashnali, we've got the Jamie 0:18:35.880 --> 0:18:39.920 Diamonds take on artsfiicial intelligence. Yeah, it's pretty fascinating. Here 0:18:39.960 --> 0:18:41.920 he goes into it quite a bit. And remember this 0:18:42.000 --> 0:18:44.480 is a big deal for a few reasons. Ed one 0:18:44.560 --> 0:18:46.639 because he gives you a number here, more than a 0:18:46.720 --> 0:18:50.560 thousand people involved in data management, nine hundred data scientists, 0:18:50.880 --> 0:18:54.879 machine learning experts, and more than six hundred machine learning engineers. 0:18:55.000 --> 0:18:58.000 Remember JP Morgan has a workforce of about three hundred thousand. 0:18:58.000 --> 0:19:00.640 But when I talk to you about my other conversations 0:19:00.640 --> 0:19:03.679 I'm having, for example, with other banks, they'll tell me 0:19:03.760 --> 0:19:06.159 now that it's been easier to hire from places like 0:19:06.240 --> 0:19:09.960 Amazon than ever before, and they're finding a lot of 0:19:10.359 --> 0:19:12.560 benefits to doing that sort of thing as they build 0:19:12.680 --> 0:19:16.080 up their own ranks of technology to make their businesses 0:19:16.119 --> 0:19:19.320 more efficient. But also more competitive. He also talks about 0:19:19.359 --> 0:19:23.480 a two hundred person AI group within JP Morgan looking 0:19:23.480 --> 0:19:26.760 at new frontiers. Lastly, in addition to AI and the 0:19:26.800 --> 0:19:29.680 ability to use AI more within JP Morgan's own business, 0:19:29.680 --> 0:19:32.920 he talks about the necessity of a cloud and spending 0:19:32.960 --> 0:19:36.880 over two billion dollars on cloud infrastructure cloud based data 0:19:36.920 --> 0:19:40.240 centers to make this transition, which he calls hard work 0:19:40.320 --> 0:19:43.919 but necessary. It's interesting that at a time where we 0:19:43.960 --> 0:19:46.960 know JP Morgan has in many ways said you can't 0:19:47.000 --> 0:19:50.120 be using open aiyes technology when you're working within the bank, 0:19:50.240 --> 0:19:53.719 but they're obviosly implicating and using it to fight forward 0:19:53.720 --> 0:19:56.240 in particular, right, that seems to be a risk element here. Yeah, 0:19:56.240 --> 0:19:57.640 I think you've hit the nail on the head here 0:19:57.680 --> 0:20:01.080 the idea of open aiyes technology versus technology that is 0:20:01.119 --> 0:20:04.560 self developed within JP Morgan. There are so many rules 0:20:04.600 --> 0:20:06.639 around data and how data is communicated. This is a 0:20:06.640 --> 0:20:09.160 different example, but think about what happened with the banks 0:20:09.200 --> 0:20:12.320 and WhatsApp. Right, You're dealing with a lot of sensitive 0:20:12.359 --> 0:20:14.840 data across the world's tied to deals or tied to customers. 0:20:14.880 --> 0:20:17.239 So this is a matter of choosing which technology is right. 0:20:17.280 --> 0:20:20.080 But the idea of AI changing this business is not 0:20:20.200 --> 0:20:23.320 up for dispute, all right, Boombo Sinali ba'st with the 0:20:23.320 --> 0:20:34.600 Wall Street Beats. Welcome back to Bloomberg Technology. I'm Caroline 0:20:34.640 --> 0:20:36.719 Hyde in New York and I made lovelow in San 0:20:36.760 --> 0:20:39.320 Francisco now at about a month ago, just a few 0:20:39.320 --> 0:20:42.360 weeks before the administration unveiled some of its most aggressive 0:20:42.440 --> 0:20:47.160 anti hacking measures yet chrissing this America's first cyber director, 0:20:47.200 --> 0:20:49.359 as she stepped down from his post. Now appears the 0:20:49.400 --> 0:20:52.560 reason was primarily due to clashes with another top officials. 0:20:52.600 --> 0:20:55.359 All according to people familiar and indeed some correspondence that 0:20:55.440 --> 0:20:59.159 Bloomberg saw in all highlights basically deep internal strife within 0:20:59.200 --> 0:21:02.879 the president's new cyberteam between those. Katrina Manson joins us 0:21:02.880 --> 0:21:05.560 for more on what is Bloomberg exclusive working closely with 0:21:05.600 --> 0:21:08.679 your colleagues on this. Is it just friction at the 0:21:08.680 --> 0:21:12.359 top that happened here? Well, if you go by what 0:21:12.440 --> 0:21:15.720 Chris Inglis said in his email, which re reviewed in 0:21:15.760 --> 0:21:19.600 this story that was led by my colleague William Turton, 0:21:19.960 --> 0:21:23.760 he feels that and new Burger, the other top cyber 0:21:23.800 --> 0:21:27.720 official at the White House, withheld information from him and 0:21:28.200 --> 0:21:30.920 actually work to undermine the very strategy that he was 0:21:30.960 --> 0:21:32.639 trying to roll out for the nation. This is the 0:21:32.720 --> 0:21:36.320 nation's first cyber strategy under under his watch, and so 0:21:36.960 --> 0:21:40.000 it's a huge accusation that he's making in private to 0:21:40.200 --> 0:21:43.280