Speaker 1: From Hart of where Innovation, Money Empower, Colne in Silicone Valley, NBR.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow
Speaker 1: and Caroline Hide of Bloomberg's World t head quarters in
Speaker 1: New York and Imed Ludlow in San Francisco. This is
Speaker 1: Bloomberg Technology coming up. We will bring you the latest
Speaker 1: headlines in the world of technology, the run up in
Speaker 1: the stocks, but also of course Donald Trump as he
Speaker 1: prepares to surrender to law enforcement officers in Lower Manhattan,
Speaker 1: and a deep dive into the world of electric vehicles.
Speaker 1: This GM seeks to grow its market share. We discussed
Speaker 1: with GM's North America president, Steve Carlisle, and we'll speak
Speaker 1: to legendary athlete entrepreneur in fact he does everything nowadays,
Speaker 1: Shaquille O'Neill, who's expanding his global empire in a partnership
Speaker 1: with Genius Brands, discussed the announcement and so much more
Speaker 1: throughout this all eyes on technology, all eyes on the markets,
Speaker 1: all eyes on the NASDAC off by half a percentage
Speaker 1: point on the day, ed interesting moves that we get.
Speaker 1: Also across the banking index, we're seeing big banks under
Speaker 1: pressure off by more than two at one point more
Speaker 1: than three percent. We worry about the future of the
Speaker 1: banking surviva overall sustainability at the moment. How strong is
Speaker 1: the financial world at the moment? We hear from the
Speaker 1: likes of Jamie Diamond in his annual letter really talking
Speaker 1: that perhaps this isn't over yet. In terms of crisis
Speaker 1: of confidence. We see two year yield actually a bid
Speaker 1: coming is significantly to the two year bond market eleven
Speaker 1: basis points on the downside that coming as we see
Speaker 1: some weakness finally in the job market in the United
Speaker 1: States that jolts data showing the openings are coming back
Speaker 1: a little bit. Moving on, Let's look at what key
Speaker 1: arriskasset that seems to be moving away from tech stocks.
Speaker 1: We're still up on Bitcoin, up one and a half percent,
Speaker 1: even as we see tex stocks on the downside. Ed
Speaker 1: dig into the micro Yeah, we kind of turned a
Speaker 1: corner on the NAZAC one hundred in the last hour.
Speaker 1: Many few move is actually moving to the upside. Alphabet
Speaker 1: pair of Google is one Tesla on track for its
Speaker 1: worst two day drop since the start of the year.
Speaker 1: The first two sessions of twenty twenty three. Virgin Orbit
Speaker 1: down twenty two percent. A parsay is that it has
Speaker 1: now filed for bankruptcy, which will dig into later in
Speaker 1: the show. Bull Frog might be a new name to us.
Speaker 1: Bull Frog AI up twenty five percent. It had been
Speaker 1: up more than one hundred percent in the session. Caroline
Speaker 1: on a licensing patch with JOHNS Hopkins the University. Going
Speaker 1: to dig into that one later in the program as well.
Speaker 1: We're tracking the special Purpose Acquisition Company which is due
Speaker 1: to take True Social public The Trump backs conservative social
Speaker 1: media platform actually interesting over the last five days, markedly
Speaker 1: higher as the attention has been on former President Trump.
Speaker 1: We're going to cover that story in just one moment's time,
Speaker 1: but we're pretty sharp be lower in the session. It
Speaker 1: has failed to file its ten K and the some
Speaker 1: accounting work that needs to go on there. But interesting
Speaker 1: the focus on conservative social media platforms right now because
Speaker 1: of what's happening in New York. And we're soon going
Speaker 1: to get just outside the Supreme Court of New York
Speaker 1: in a moment. But first let's dig into the top
Speaker 1: performing stock funds. What they say about tech stocks them
Speaker 1: up in the risk ratty that we've seen many saying
Speaker 1: it's gone too far Meanwhile, JP Mulgan structures Marko Klonovitch.
Speaker 1: He's saying, the first goal to stock ratty is just
Speaker 1: the come before the storm. Let's stick into it. None
Speaker 1: of them bring bags, Katie Greifeld, the rally in tech
Speaker 1: has some naysayers now Mike Wilson yesterday, and now some
Speaker 1: key fund managers too. Yeah. The thing is, you've heard investors,
Speaker 1: you've heard strategists say that this isn't something that you
Speaker 1: want to touch. That basically, stocks have been sort of
Speaker 1: operating in their own reality, and when you think about
Speaker 1: all of the issues that were still issues. But then
Speaker 1: if we think back before the banking crisis higher for longer,
Speaker 1: we know that sort of the optimism that maybe this
Speaker 1: would cause the FED to pivot was fueling tech socks
Speaker 1: for a while for the bulk of March. But now
Speaker 1: you're in a situation where you have the FED officials
Speaker 1: from the top down really saying that we have a
Speaker 1: lot more wood to chop. There's a lot more to
Speaker 1: go here to really get inflation under control, and that's
Speaker 1: still an issue for these big tech names. Katie, with
Speaker 1: three tenths of a percent lower on the NASA one hundred,
Speaker 1: but the run up and stocks this year, it is
Speaker 1: megacap tech and tech that's been driving it. And as
Speaker 1: we think about the FED, it's tech that's firmly in
Speaker 1: focus on why we're making those bets exactly. And I
Speaker 1: mean you've seen this in a few different notes across
Speaker 1: Wall Street tourists and Slot from Apollo pointing it out
Speaker 1: today that if you look under the surface of the rally,
Speaker 1: it's a handful of names that's really driving it. It's
Speaker 1: those megacap tech names to your point ed. But again,
Speaker 1: if you bring it back into the macro situation, where
Speaker 1: you do have a FED that's going to raise interest
Speaker 1: rates here, that would become a problem for other parts
Speaker 1: of the sector. Maybe rising interest rates aren't as much
Speaker 1: of a problem for Amazon as they are for something
Speaker 1: like Virgin Orbit, for example, but even still that is
Speaker 1: a problem. And you now have a much more expensive
Speaker 1: tech sector than you did perhaps a few months ago,
Speaker 1: particularly twenty four times future earnings over in Europe. It's
Speaker 1: not just a US rally we're seeing in technology. But
Speaker 1: look at the Jolts data. Can you bring us back
Speaker 1: to the economic perspective, because that seems to signal maybe
Speaker 1: inflation isn't going to run so rampant. There's the thing.
Speaker 1: And if you look at today's price action, sort of
Speaker 1: the bond market is reacting how you would expect. You
Speaker 1: have two year treasury yields, which are most sensitive to
Speaker 1: rate expectations, down eleven basis points. But then you also
Speaker 1: have tech down. And if you follow the logic that
Speaker 1: you know, some of the balls on tech have been spinning,
Speaker 1: which is that lower rates would be good for tech.
Speaker 1: That doesn't seem to hold water today. So maybe you're
Speaker 1: seeing some cracks in the armor of that ball case.
Speaker 1: Quite often, the bond market and the equity market don't
Speaker 1: always seem to agree. Katie Greifeld. You can catch up
Speaker 1: so much more with her a little bit later in
Speaker 1: programming that. Let's talk now about former President Donald Trump
Speaker 1: preparing to surrender to authorities in New York City. His
Speaker 1: arraignment scheduled for two fifteen pm Easton and Lower Manhattan.
Speaker 1: Trance lawyer saying he will plead not guilty. Quote very
Speaker 1: loudly and proudly. Let's get out to bring Mexamory Horden,
Speaker 1: who is outside New York's Supreme Court. It is getting
Speaker 1: busy there, Yeah, it certainly is just the park across
Speaker 1: from the Supreme New York State Supreme Court. You have
Speaker 1: probably a little bit over a thousand protesters. Some of
Speaker 1: them are here in support of the former president and
Speaker 1: against these charges, and some of them are here for
Speaker 1: the charges and against the former president. And there was
Speaker 1: moments where actually there was physical altercations. We also had
Speaker 1: Congresswoman Marjorie Taylor Green, which represents a district in Georgia.
Speaker 1: She was here for about ten minutes time. Very hard
Speaker 1: to hear her though, because if you can hear now,
Speaker 1: these bells, these whistles, drums, they were all going on
Speaker 1: because those anti Trump supporters, they were the ones that
Speaker 1: were year wanting to drown her out. All the action
Speaker 1: is going to be taking place in a little over
Speaker 1: two hours time. The president, as you said, Caroline, won't
Speaker 1: be turning himself in, and then at two fifteen there
Speaker 1: will be that arrangement. Already you are hearing helicopters around
Speaker 1: Lower Manhattan. Former president will be making his way here
Speaker 1: from Trump Tower to the Court House. We should note
Speaker 1: this indictment is still under seal, so a lot of questions,
Speaker 1: but the reports are that there's more than two dozen
Speaker 1: felony charges. And then after his arrangement and all the
Speaker 1: paperwork that has done and the fingerprinting, the president is
Speaker 1: going back to morrow Agle to give a primetime address
Speaker 1: this evening. Remember this is not just a former president,
Speaker 1: This is the leader for the Republican Party in terms
Speaker 1: of the front runner of the twenty twenty four presidential election.
Speaker 1: All right, Bloomberg xam Reharden low mana and thank you.
Speaker 1: We learned twenty four hours ago, Caroline that the judge
Speaker 1: is barring broadcasters from broadcasting the arrangement, but will follow
Speaker 1: the headlines as they come through. Tesla increased shipments in
Speaker 1: March from its plant in Shanghai is the evmaker is
Speaker 1: wrapping up a record quarter of vehicle deliveries. That's according
Speaker 1: to prelim data from China's Passenger Car Association. The jump
Speaker 1: in wholesale deliveries to dealers follows Tesla slashing prices of
Speaker 1: its locally made these by as much as fourteen percent
Speaker 1: at the beginning of the year and triggering a slew
Speaker 1: of discounts and incentive offerings from other carmakers. Companies that
Speaker 1: followed suit range from Chinese ev startups expong NEO to
Speaker 1: international manufacturers like Vogswagen, Mercedes, Benz and Ford. Now Tesla's
Speaker 1: monthly wholesale figures in China, they're probably a better indication
Speaker 1: of production rather than deliveries because they're not deliveries direct
Speaker 1: to consumers. However, actual Tesla global delivery figures Caroline hit
Speaker 1: a new record over the weekend, but still falling short
Speaker 1: of musks target fifty cent annual growth. And it's interesting,
Speaker 1: isn't We're trying to get a full picture of where
Speaker 1: ev demand is. Is it remaining with Tesla? Is it
Speaker 1: going to rivals? Is it just generally down on the
Speaker 1: fact that the economy is slowing somewhat? And we asked
Speaker 1: our audience yesterday, we went to you, went to Twitter,
Speaker 1: We asked you our usual daily pole, this time ask
Speaker 1: you look demand for Tesla evis is is it going
Speaker 1: to rivals? For thirty seven percent of you say it is?
Speaker 1: Is it by the economy? Only about a quarter of
Speaker 1: you think that, But actually thy nine percent pretty optimistic.
Speaker 1: They still think we're still full on in terms of
Speaker 1: demand for Tesla. What then of the rivals? What then
Speaker 1: of the bill up in av sales coming from other companies?
Speaker 1: Steve Carla Lampiece to say, is with us to discuss
Speaker 1: the outlook from General Motors is executive vice president of course,
Speaker 1: also the North American president, and recently updating the market
Speaker 1: on your sales basically including what twenty thousand evs that
Speaker 1: you've been selling. How do you see the market share
Speaker 1: for GM at the moment, Well, the market share overall,
Speaker 1: we had a pretty terrific quarter overall, including internal combustion.
Speaker 1: We finished on top of the market in terms of
Speaker 1: retail as well as fleet. We're very proud of that.
Speaker 1: But to the pointier question, it's the first quarter that
Speaker 1: we broke through twenty thousand electric vehicle sales. So and
Speaker 1: that comes in a year where we see it as
Speaker 1: a breakout opportunity for us. And the reason that I
Speaker 1: say that is our ultium battery plants are just coming
Speaker 1: online in Lordstown, Ohio, and then later on in spring
Speaker 1: Hill in Tennessee and then in Michigan at the same
Speaker 1: time as we start to increase production of Catalanc Lyric
Speaker 1: and the Hummer truck and suv, and we have several
Speaker 1: launches right behind that. So we see it as assigned
Speaker 1: to come dig in the lyrics sales less than a thousand. Yeah,
Speaker 1: what was it? Two Hammer EV pickups in the quarter?
Speaker 1: When did these numbers become really real, really tangible. Very soon?
Speaker 1: We're starting to see a Lyric shipments from the factory
Speaker 1: and in the pipeline increased dramatically, and then beyond that,
Speaker 1: we have a very solid order bank in committed customers
Speaker 1: in the thousands. So I'm very excited about that that opportunity.
Speaker 1: As Steve Caroline asked a key point, which is within
Speaker 1: that twenty thousand EV number, a lot of that was
Speaker 1: Chevy Bolt. It doesn't reflect the new models. Give me granularity,
Speaker 1: Give me numbers on the production output currently for the
Speaker 1: next gen Altium models and how that ramped through the year. Well,
Speaker 1: if I take the twenty thousand that we did in
Speaker 1: the first quarter, we see that growing to fifty thousand
Speaker 1: by the end of June and then doubling again by
Speaker 1: the end of the year, and the growth within that
Speaker 1: will be one hundred percent plus of Lyric and Hummer
Speaker 1: and Blazer and Equinox and and beyond that Bolt and Bolt.
Speaker 1: TUV has done a tremendous job for us, particularly in
Speaker 1: the affordable EV part of the market. But where we
Speaker 1: see the huge volume opportunities in the in the latter
Speaker 1: products that I mentioned, and that that continues to grow
Speaker 1: into into twenty four where we see ourselves, uh you know,
Speaker 1: at the end of that timeframe kind of into the
Speaker 1: million range. So but just to scale it another, growing
Speaker 1: to fifty thousand in the second quarter and then two
Speaker 1: one hundred by the end of the year. And see
Speaker 1: to be cleared that fifty thousand to one hundred thousand,
Speaker 1: that's driven by new generation models, not just a ramping bolt,
Speaker 1: that's correct. It's driven by LTIAM based models late Lyric
Speaker 1: and Hummer and Blazer and Equinox and so on. Yes,
Speaker 1: Steve taking market share from Tesla, well, we believe so.
Speaker 1: We're our share of the EV market has grown to
Speaker 1: eight or nine percent just in the past several months.
Speaker 1: And as we look at the share of our competitors,
Speaker 1: including Tesla, where we would appear to be gaining across
Speaker 1: the board, and we see that in our reservations and
Speaker 1: our trade ins I mentioned Lyric, When we look at
Speaker 1: trades and in the like of that, we see a
Speaker 1: preponderance of our competitors in that mix. So a lot
Speaker 1: of plus business for general motor particularly in markets where
Speaker 1: we've been admittedly challenged, the so called smile states, including California,
Speaker 1: where we appear to be over indexing when it comes
Speaker 1: to EV sales. And that comes at the expense of
Speaker 1: some of those that we've just talked about. And that's
Speaker 1: the next question, isn't it, Caroline. We're thinking about the
Speaker 1: impacts of regulation, the impacts of government here. Steve just said,
Speaker 1: California is where all the energies at. So what happens
Speaker 1: when the IRA kicks him? Right? Yeah? Inflation Reduction Act?
Speaker 1: What does that mean in terms of well, people's ability
Speaker 1: to be able to form more calls? But ultimately, Steve,
Speaker 1: what about commercial vehicles here as well? Because you've got
Speaker 1: bright drop the electric commercial vans. Is that in any
Speaker 1: way going to help by the government focus on the
Speaker 1: IRA in particular, Yeah, for sure, And just to back
Speaker 1: up in California, I use that as an example. That's
Speaker 1: true across the country in terms of how we're over
Speaker 1: over indexing. But when it comes to IRA, we feel
Speaker 1: as though we're very well positioned, including the announcements that
Speaker 1: we're made late in the week last week. And the
Speaker 1: reason that I say that is how we've sourced the
Speaker 1: battery raw materials and the processing and the post processing.
Speaker 1: So we feel as though most of our models will
Speaker 1: qualify for that treatment, which can only help the demand side,
Speaker 1: including on the commercial side of the business. We've had
Speaker 1: very good uptake on the bright Drop business, for instance,
Speaker 1: and you know we're looking forward to we're down on
Speaker 1: that plant right now retooling for even higher volumes. So
Speaker 1: we see terrific opportunity there and talk to us about
Speaker 1: ramp about volumes, about shortages, particularly in chips that many
Speaker 1: auto companies faced. Well, the chip situation, i'd say is
Speaker 1: normalized to a great degree. We still get in and
Speaker 1: out of that on a day to day basis or
Speaker 1: a week to week basis. But our availability, if I
Speaker 1: measured in percent of production last year, if we ran
Speaker 1: kind of in the hi eighties low nineties of available capacity,
Speaker 1: we're much closer to one hundred this year. And that's
Speaker 1: a reflection and it's a mix now. It's gone beyond chips,
Speaker 1: logistics factors in to a much greater degree this year.
Speaker 1: So it's just those challenges that we managed day to day,
Speaker 1: which is why you know, we're pretty happy with our
Speaker 1: performance so far, and that we can continue to gain share,
Speaker 1: whether it's internal combustion engines or electric vehicles, particularly as
Speaker 1: we're in this very rich launch Cadence Steve are coming
Speaker 1: off a strong quarter for new US car sales, right
Speaker 1: there's evidence there was pent up demand, higher rates, concern
Speaker 1: about the duress the consumers. Under what is kind of
Speaker 1: GM's economic outlook for the rest of the year. We'll
Speaker 1: speak directly to the to the industry. We see we
Speaker 1: finished the third quarter kind of in the fifteen point
Speaker 1: three million unit range, and we would see that holding
Speaker 1: in perhaps accelerating a little bit through the through the
Speaker 1: end of the year. At the same time as transaction
Speaker 1: prices are also holding, incentives are staying at moderate levels.
Speaker 1: Dealer grosses appear to be stable, used car prices stable,
Speaker 1: so all those ingredients to continue on a glide path
Speaker 1: of good performance we see there. So uh, you know,
Speaker 1: we're anxious to see what we see through the first
Speaker 1: quarter is to help inform what we see through the
Speaker 1: rest of the year. But in that on top of
Speaker 1: we have some terrific launches, as I've mentioned, whether it's
Speaker 1: internal combustion or evs. So we're feeling pretty good about
Speaker 1: twenty twenty three, Steve called out General Moss, Executive Price
Speaker 1: President North America present out in New York, Caroline, thank
Speaker 1: you for your time. Now coming up, Apple and Walmart
Speaker 1: slash in jobs while Virgin Orbit files for bankruptcy. We'll
Speaker 1: bring you the details in Talking Tech next versus Bloomberg.
Speaker 1: Time now for Talking Tech Today, We're honing in on
Speaker 1: job cuts. First up, Walmart cutting at least two thousand
Speaker 1: jobs at five US e commerce fulfillment centers that, according
Speaker 1: to regulatory fighting to The losses include more than one
Speaker 1: thousand positions at a center in Texas, six hundred jobs
Speaker 1: in Pennsylvania at a warehouse, four hundred in Florida, and
Speaker 1: about two hundred in New Jersey. And additional reduction is
Speaker 1: planned in California. And Walmart isn't alone. Apple also making cuts,
Speaker 1: eliminating a small number of roles within its co operate
Speaker 1: retail teams that according to sources, this marks the first
Speaker 1: known internal job cuts since it embarked on a belt
Speaker 1: tightening effort last year. The company is shedding positions in
Speaker 1: what it calls its development and preservation teams. Those groups
Speaker 1: are responsible for the construction and upkeep really of Apple
Speaker 1: retail stores and other facilities around the world. Finally, Virgin Orbit,
Speaker 1: the satellite launch firm tied to British billionaire Wshar Branson,
Speaker 1: failed to secure the funding needed to keep operating and
Speaker 1: has filed for bankruptcy. Virgin Orbit had cut about eighty
Speaker 1: five percent of its staff. The company listed two hundred
Speaker 1: and forty three million dollars in assets and one hundred
Speaker 1: and fifty three point five million for its total debt
Speaker 1: in a Chapter eleven petition filed in Delaware Caroline. Now,
Speaker 1: let's just shift gears a little bit time for Wall
Speaker 1: Street Beat, and today we are focusing in on Jamie
Speaker 1: Diamond's annual letter to shareholders, because not only did he
Speaker 1: talk about banking collapses, he also talked a lot about tech,
Speaker 1: a lot about chat chypt and let's run through it
Speaker 1: all with Brilian Motionali Bassett. First, let's talk about the
Speaker 1: banking implications, because we see big banks down once again
Speaker 1: on the day. Absolutely he talked about things hiding in
Speaker 1: plain sight. He mentioned that in terms of Silicon Valley Bank,
Speaker 1: but also Credit Squeez. Remember this rising interest rate environment
Speaker 1: has posed a lot of different risk for banks that
Speaker 1: have seen deposit bases. Now we are paying attention to
Speaker 1: this year, but really the deposit base across America's banks
Speaker 1: have been reduced by about a trillion dollars since twenty
Speaker 1: twenty two, and so a lot of pressure when you
Speaker 1: look at the smaller banks, in particular, of which JP
Speaker 1: Morgan banks three hundred and fifty of more than four
Speaker 1: thousand in this country alone. Hashnali, we've got the Jamie
Speaker 1: Diamonds take on artsfiicial intelligence. Yeah, it's pretty fascinating. Here
Speaker 1: he goes into it quite a bit. And remember this
Speaker 1: is a big deal for a few reasons. Ed one
Speaker 1: because he gives you a number here, more than a
Speaker 1: thousand people involved in data management, nine hundred data scientists,
Speaker 1: machine learning experts, and more than six hundred machine learning engineers.
Speaker 1: Remember JP Morgan has a workforce of about three hundred thousand.
Speaker 1: But when I talk to you about my other conversations
Speaker 1: I'm having, for example, with other banks, they'll tell me
Speaker 1: now that it's been easier to hire from places like
Speaker 1: Amazon than ever before, and they're finding a lot of
Speaker 1: benefits to doing that sort of thing as they build
Speaker 1: up their own ranks of technology to make their businesses
Speaker 1: more efficient. But also more competitive. He also talks about
Speaker 1: a two hundred person AI group within JP Morgan looking
Speaker 1: at new frontiers. Lastly, in addition to AI and the
Speaker 1: ability to use AI more within JP Morgan's own business,
Speaker 1: he talks about the necessity of a cloud and spending
Speaker 1: over two billion dollars on cloud infrastructure cloud based data
Speaker 1: centers to make this transition, which he calls hard work
Speaker 1: but necessary. It's interesting that at a time where we
Speaker 1: know JP Morgan has in many ways said you can't
Speaker 1: be using open aiyes technology when you're working within the bank,
Speaker 1: but they're obviosly implicating and using it to fight forward
Speaker 1: in particular, right, that seems to be a risk element here. Yeah,
Speaker 1: I think you've hit the nail on the head here
Speaker 1: the idea of open aiyes technology versus technology that is
Speaker 1: self developed within JP Morgan. There are so many rules
Speaker 1: around data and how data is communicated. This is a
Speaker 1: different example, but think about what happened with the banks
Speaker 1: and WhatsApp. Right, You're dealing with a lot of sensitive
Speaker 1: data across the world's tied to deals or tied to customers.
Speaker 1: So this is a matter of choosing which technology is right.
Speaker 1: But the idea of AI changing this business is not
Speaker 1: up for dispute, all right, Boombo Sinali ba'st with the
Speaker 1: Wall Street Beats. Welcome back to Bloomberg Technology. I'm Caroline
Speaker 1: Hyde in New York and I made lovelow in San
Speaker 1: Francisco now at about a month ago, just a few
Speaker 1: weeks before the administration unveiled some of its most aggressive
Speaker 1: anti hacking measures yet chrissing this America's first cyber director,
Speaker 1: as she stepped down from his post. Now appears the
Speaker 1: reason was primarily due to clashes with another top officials.
Speaker 1: All according to people familiar and indeed some correspondence that
Speaker 1: Bloomberg saw in all highlights basically deep internal strife within
Speaker 1: the president's new cyberteam between those. Katrina Manson joins us
Speaker 1: for more on what is Bloomberg exclusive working closely with
Speaker 1: your colleagues on this. Is it just friction at the
Speaker 1: top that happened here? Well, if you go by what
Speaker 1: Chris Inglis said in his email, which re reviewed in
Speaker 1: this story that was led by my colleague William Turton,
Speaker 1: he feels that and new Burger, the other top cyber
Speaker 1: official at the White House, withheld information from him and
Speaker 1: actually work to undermine the very strategy that he was
Speaker 1: trying to roll out for the nation. This is the
Speaker 1: nation's first cyber strategy under under his watch, and so
Speaker 1: it's a huge accusation that he's making in private to
Speaker 1: a former colleague, and certainly I think sending ripples through
Speaker 1: this Biden administration that has talked so much about creating
Speaker 1: a joined up team to tackle some of the big
Speaker 1: cyber issues this country basis because it was seen as
Speaker 1: a dream team, wasn't it. These three executives, all with
Speaker 1: really deep intelligence experience, coming on at a time where
Speaker 1: we were worried. We're worried about infrastructure being impacted by hacking. Yes,
Speaker 1: and I think the US was not at the pace
Speaker 1: of the threat. I think many people would say it
Speaker 1: still isn't. So there is so much more to be done.
Speaker 1: That's what this strategy is supposed to fix. And to
Speaker 1: have had this problem at the top these claims that
Speaker 1: a Newburger also made some claims. She said that the
Speaker 1: new office that Chris Inglis was running, that they were
Speaker 1: not that they were frequently unrealistic about timelines. There has
Speaker 1: just clearly been discord between the two of them and
Speaker 1: between their officers. I think the question is to what
Speaker 1: extent does this undermine the actual effort to face off
Speaker 1: this cyber threat. If you ask a Newburger, she says
Speaker 1: in a statement to US, reports of discord have had
Speaker 1: little if any impact on the proceedings. But I think
Speaker 1: you've got to look to the fact that Chris Inglis
Speaker 1: has resigned for six weeks, that post has gone unfilled.
Speaker 1: There's an acting but the administration now needs to nominate
Speaker 1: someone and they're congratsionally mandated to do that, and at
Speaker 1: the moment, there's no one rolling out the clan to
Speaker 1: actually implement that cyber strategy, and that's all to be
Speaker 1: done under the oversight of the NSC. Where a new burgers.
Speaker 1: So when we do speak to people, we do hear
Speaker 1: that there is an expectation that this kind of friction,
Speaker 1: maybe not on this same level, but certainly friction is
Speaker 1: expected to continue. You've got two new officers in the
Speaker 1: same White House trying to do some of the same job,
Speaker 1: so good tre The core of this is a turf war,
Speaker 1: which we love in the world of technology, but it's
Speaker 1: also early days in the Biden strategy around cyber So
Speaker 1: what's the reaction. What does President Biden do to resolve this? Well,
Speaker 1: I think they have to appoint someone. We've heard that
Speaker 1: they are planning to appoint someone soon. Who that person
Speaker 1: is will be obviously very interesting. There are a lot
Speaker 1: of people endorsing the acting director at the moment, Kember Walden.
Speaker 1: She'd been in there for a long time. She'd been
Speaker 1: working hand in hand with Chris inglis So. I think
Speaker 1: Congress will be looking for who do they actually want
Speaker 1: to give this role to in future and to what
Speaker 1: extend anyone, especially now with all of this out in
Speaker 1: the open, really going to try and make these teams
Speaker 1: work together? All right? Bloom Birds, Katrina Manson, thank you
Speaker 1: very much. The venture arm of Saudi Arabia's Sovereign Wealth
Speaker 1: Fund disclosed its ties to more than fifty venture capital
Speaker 1: and private equity firms, including Blackstone and KKI, and one
Speaker 1: of the first public disclosures of its investments. The Saudi
Speaker 1: Fund says it commits around two billion dollars each year
Speaker 1: into quote, venture, growth and small buyout assets worldwide. Other
Speaker 1: firms it names include Andresen Horowitz, General Atlantic, Hellman and Friedman,
Speaker 1: and Plane Equity. A stick in the world of venture
Speaker 1: capital in the US and bring in Union Square Ventures
Speaker 1: managing partner Rebecca Caden for her read on what is
Speaker 1: still a digest of the post SVB collapse and the
Speaker 1: health of ecosystems of American startups. Rebecca, I want to
Speaker 1: start right now with access to capital. Sure, what's your
Speaker 1: read on the health of startups and their ability to
Speaker 1: access capital in the weeks that have followed svb's collapse.
Speaker 1: I think we're kind of slowly finding our norm there's
Speaker 1: definitely ripple effects and it's not going to reverse so quickly.
Speaker 1: People are trying to figure out the world we're living
Speaker 1: in and the normal. But at the same time, there's
Speaker 1: a lot of exciting innovation happening. There's platform shifts that
Speaker 1: we haven't seen in a long time, and investments are
Speaker 1: getting made. So it's a challenging ecosystem, but it's also
Speaker 1: still an active ecosystem. You've been writing checks in twenty
Speaker 1: twenty three. Who may I I see one of them,
Speaker 1: Journey clinical one that you've written about and worked about. Yep,
Speaker 1: this is about health mental well being in particular, but
Speaker 1: there is, of course, you want important artificial intelligence sort
Speaker 1: of being led in in certain areas right. Yes, absolutely,
Speaker 1: I think you know, everyone is a buzz with AI
Speaker 1: and for a good reason. I think we're seeing opportunity
Speaker 1: and potential platform shift that we haven't seen in a
Speaker 1: long time. So layered on a complicated economic environment, there's
Speaker 1: a lot of cool stuff to be excited about. Can
Speaker 1: you dig in into what the layer is all that
Speaker 1: we should be looking at the cool stuff? Because is
Speaker 1: it the modelmakers? Everyone whispering chachybt and open ai seems
Speaker 1: to be the only company that we can really talk about.
Speaker 1: But there are the applications. It's the people with the
Speaker 1: bodies of data that these AIS models can get to
Speaker 1: grips with. Who wins out here? Where is the actual
Speaker 1: money going to be made? Yeah, I think we're in
Speaker 1: the time with as many questions and kind of opportunities
Speaker 1: to discover as we are answers to that. But the
Speaker 1: first question is where will equity value accrue? And we
Speaker 1: know the fundamental models and the lms are accruing a
Speaker 1: lot of value. But over time, we believe the application
Speaker 1: layer on top, how those lms interface with industry and
Speaker 1: with consumer will get really interested. There's just a question
Speaker 1: of timing and how long that takes to evolve, but
Speaker 1: we think, you know, the consumer applications and also how
Speaker 1: AI and some of these opportunities intersect things like education
Speaker 1: and healthcare are going to provide major opportunities. A Life,
Speaker 1: for example, I do just want to bring you in here.
Speaker 1: A Life is one investment that Rebecca has talked about,
Speaker 1: and that really is an application of artificial intelligence to
Speaker 1: be able to actually increase your chances of getting pregnant.
Speaker 1: This is AI within the healthcare scene, but we start
Speaker 1: to see in some ways some marketing play here when
Speaker 1: it comes to AI too, right, Yeah, that's what intrigues me, Rebecca.
Speaker 1: Do you invest in companies that are working on the
Speaker 1: underlying technology trying to move artificial intelligence as a field
Speaker 1: forward or do you go to those companies that are
Speaker 1: trying to seize the technology and offer a service using it.
Speaker 1: You know, I think there's going to be major opportunities
Speaker 1: in both. But for us, we're really interested in that
Speaker 1: application layer and that intersection with industry as an A
Speaker 1: life as a great example there. When you think about
Speaker 1: how the opportunity for massive bodies of data to impact
Speaker 1: how diagnosing works or how you know, women can get pregnant,
Speaker 1: how you can take opportunities where people are making decisions
Speaker 1: based on individual experience and bodies of knowledge and instead
Speaker 1: apply vast universal data sets to personalize that. You can
Speaker 1: think about how that applies to all kinds of different things,
Speaker 1: and that application layer gets very exciting. You are a
Speaker 1: thesis driven venture firm. How much were you paying attention
Speaker 1: to those eleven hundred or so AI participants who said
Speaker 1: time to hit pause on developing next gen tech? You know,
Speaker 1: we're paying attention to that and also a lot of
Speaker 1: the complexities here. I think, as with any technology shift,
Speaker 1: there's opportunity and there's also a lot of questions. And
Speaker 1: I think we've learned from prior technology shifts that maybe
Speaker 1: we don't ask those questions enough, and AI is one
Speaker 1: where I think we really do need to ask them.
Speaker 1: Where there's going to be massive opportunity to drive value,
Speaker 1: drive personalization, and drive access, but we also have to
Speaker 1: think about the implications. I don't know if that answer
Speaker 1: is the right answer, but it's on all of us
Speaker 1: and particularly investors, to think about the questions and the
Speaker 1: potential falls, you know, as well as all the opportunity
Speaker 1: and value it creates. You know, we've been so busy.
Speaker 1: Caroline recently uttering the words artificial intelligence. We haven't even
Speaker 1: had any time to say the words crypto and currency.
Speaker 1: We did a bit earlier with doscoin on the rise.
Speaker 1: That seems to be the new Twitter theme of choice.
Speaker 1: But Rebecca Unit Spare a Ventures is focused on Web
Speaker 1: three has been very involved in the crypto ecosystem here
Speaker 1: in New York as well. What do you make of
Speaker 1: the hype cycle we see ANAI, the hype cycle was
Speaker 1: sore in crypto and where the valuations are playing out
Speaker 1: right now? Yeah, Look, crypto is in a challenging moment.
Speaker 1: It's hard to argue with that, and partly for some
Speaker 1: good reason, but USB's interest in crypto is really about
Speaker 1: the underlying opportunity for decentralization and what decentralization can do
Speaker 1: for innovation, technology, data drawing back power to the individual
Speaker 1: out of platforms, and we think that opportunity is stronger
Speaker 1: than ever, you know, just maybe not in those end
Speaker 1: tokens right now. So we think these will be you know,
Speaker 1: cyclical and seasonal, but we're still really excited about it. Cyclical, seasonal.
Speaker 1: Where now in terms of where are you at in
Speaker 1: terms of finding the right founda and where are you
Speaker 1: finding that founda? You are based here in newal but
Speaker 1: it's very much a global focus for you at the moment.
Speaker 1: Where are people building great technology? I think one of
Speaker 1: the most exciting things that's going on is that people
Speaker 1: are building great technology everywhere. We're very excited about the
Speaker 1: New York ecosystem. We think when entrepreneurs have had a
Speaker 1: chance to choose where to live, many of them have
Speaker 1: chosen New York even more than before, and we're excited
Speaker 1: to contribute to that growth. But the USB portfolio is
Speaker 1: increasingly global. We think teams are increasingly global, and innovation
Speaker 1: is coming from lots of different corners, particularly as technology
Speaker 1: and industry intersect, and we think that will continue. Rebecca,
Speaker 1: We're trying to shape up the data. You know how
Speaker 1: twenty twenty three is going to look relative to twenty
Speaker 1: twenty one and twenty twenty two. Growth rounds in particular
Speaker 1: seem to go away in twenty twenty two. Your industry
Speaker 1: colleagues talk a lot with optimism about early stage. How
Speaker 1: do you be nimble in that respect? Your USB is
Speaker 1: a pretty focused fund. We really focus in on seed
Speaker 1: in Series A investments and then only opportunistically go a
Speaker 1: bit later. The early innovation ecosystem, there's a lot to
Speaker 1: look for there. You know, we talked about AI, but
Speaker 1: we talked about crypto, but there's a lot of other
Speaker 1: corners as well where technology is really driving value. So
Speaker 1: early stage we're seeing a lot of activity. Growth stage
Speaker 1: is harder. Right now, you're seeing the market really clench
Speaker 1: and wait to figure out where things land. And I'm
Speaker 1: not so sure that's going to settle very soon. We
Speaker 1: think there may be you know, it's still a stretch ahead,
Speaker 1: so twenty twenty three may be slow there as well.
Speaker 1: Hey Rebecca, you're out there in New York City with
Speaker 1: my good friend Caroline Hide. What's it like being a
Speaker 1: VC in New York right now? What's the scene like?
Speaker 1: New York is thriving. I think it's an exciting place
Speaker 1: to build and it's an exciting place to invest. The
Speaker 1: community is really really strong. We are seeing lots of
Speaker 1: people come through think that they're you know, stopping by,
Speaker 1: and wind up making it their permanent home to build companies.
Speaker 1: The talent ecosystem has grown tremendously. I think, you know,
Speaker 1: coming out of the pandemic, people felt a lot more
Speaker 1: choice about where they wanted to live and when that happened.
Speaker 1: They love New York because New York is a fantastic city.
Speaker 1: It's not without its challenges, but it's a great place
Speaker 1: to live and to meet and to think about that
Speaker 1: intersection of how technology crosses the other ways we live.
Speaker 1: And so it's never been more exciting to be here
Speaker 1: as an investor, and we love drilling into it. Hey
Speaker 1: with you, Unions have Benches. Managing partner Rebecca Caden, a
Speaker 1: joy to have you with us, Thank you, And well,
Speaker 1: we talked about the New York scene, Ed, let's get
Speaker 1: back to your scene, the San Francisco Bay area, when
Speaker 1: in fact, two things you love you love soccer two
Speaker 1: and it's getting a new women's professional soccer team. We're
Speaker 1: backing from another former Meta executive, Cheryl Samberg, and with
Speaker 1: former US national team stars including Brandy Chasten and founding
Speaker 1: partners as well. The one hundred and twenty five million
Speaker 1: dollar investment is being led by Sixth Street and the
Speaker 1: group says it is the largest to date in women's soccer.
Speaker 1: And let's take a look in fact at Alma Matter
Speaker 1: Meta for Cheryl Samberg. Of course, the company is actually
Speaker 1: just trading flat today, even though the rest of the
Speaker 1: market is lower. Company has been actually relatively impressing all
Speaker 1: Street of late analysts turning more bullish on the stock.
Speaker 1: They're cutting costs. Of course, they're stabilizing advertising trends. We
Speaker 1: understand Facebook's owner. Therefore the stock books more durable in
Speaker 1: looming economic slowdown. So say those sell side analysts, all right,
Speaker 1: coming up, Warner Brothers nearing a deal for that Harry
Speaker 1: Potter TV show. We're going to bring you that Bloomberg reporting,
Speaker 1: which I have to say took a lot of people
Speaker 1: by surprise Friday night. Some headlines crossing the Bloomberg terminal.
Speaker 1: Twitter has been sued for layoffs of contract workers without
Speaker 1: giving notice. This is a class class action lawsuit, Caroline,
Speaker 1: which follows on from those twenty twenty two mass layoffs
Speaker 1: headlines crossing the Bloomberg. Twitter being sued for layoffs of
Speaker 1: contract workers without notice. Of course, that was a big
Speaker 1: part of Elon Musk's first action when he came into
Speaker 1: Twitter after buying it some pretty deep cuts. We'll all
Speaker 1: track that story for you. This is Bloomberg, Warner Brothers
Speaker 1: nearing a deal for a new Harry Potter television series.
Speaker 1: Each season of the series will be based on one
Speaker 1: of JK rowling seven books, suggesting years of fresh content.
Speaker 1: Bloombog's Chris pal Mary joins us with the details. The
Speaker 1: Bloomberg reporting is quite detailed that this is part of
Speaker 1: a broader streaming strategy. Chris, what do we know? Well, yeah,
Speaker 1: I mean so, David says, all have the CEO of
Speaker 1: Warner Brothers Discovery is you know, the company's had some
Speaker 1: trouble since the big merger last year. People aren't convinced
Speaker 1: that the strategy was a sound one to do this
Speaker 1: big deal, take on fifty billion in debt. So what
Speaker 1: he's really been trying to do is refocus the company
Speaker 1: on some high profile franchises that are going to cut
Speaker 1: through all the clutter. Certainly, it doesn't get much more
Speaker 1: high profile than this Harry Potter. And how hard has
Speaker 1: it been to convince JK Rowling to go this route again,
Speaker 1: to focus in on more TV series. This has been
Speaker 1: in the work for years, so previous management started it,
Speaker 1: and you know, it's still not a done deal. We're
Speaker 1: told it's it's pretty close. You know, there's some issues
Speaker 1: that have emerged recently with Miss Rawlings. She's a very
Speaker 1: opinionated woman and so Warner Brothers is going to have
Speaker 1: to navigate that issue. Obviously, they want her a unique
Speaker 1: storytelling skills involved in this project. We probably don't want
Speaker 1: to make her the face of it, given her comments
Speaker 1: about issues soum. So this is a complicated, you know,
Speaker 1: big deal, but it looks to be close to being announced.
Speaker 1: Myself and producer John Highland, we've been playing Hogwart's legacy
Speaker 1: Chris on PS five, John on Xbox whatever. But the
Speaker 1: point here is that this is a brand that that
Speaker 1: is broader than just the films. Right, How is HBO
Speaker 1: in particularly use that strategy? Well, you know, Warner Brothers
Speaker 1: has had the film rights for a long time. You know,
Speaker 1: they did the prequels, um and you know this fills
Speaker 1: over into so many you know, Universal has the theme parts,
Speaker 1: but you know as collapsed the book publishing, but there's
Speaker 1: there's so many elements of this the Warner Brothers can
Speaker 1: still tap and these companies, you know as they you know,
Speaker 1: planned this big event on Wednesday, We're going to unveil
Speaker 1: the new Max, the HBO Max's new name. They need
Speaker 1: these sort of marquee properties these long live properties that
Speaker 1: keep subscribers engaged. So that's really the big payoff for
Speaker 1: Warner Brothers, this long term, high quality franchise seventh series.
Speaker 1: See who can get their way through all of it.
Speaker 1: I'm sure many will. Bloomberg's christ Palmery absolutely brilliant to
Speaker 1: have you. Thank you. Now, let's return to what's happening
Speaker 1: right here in New York City. Former President Donald Trump
Speaker 1: preparing to surrender to authorities. His arraignment is scheduled for
Speaker 1: two fifteen pm Easton and Lower Manhattan. Now, Trumps lawyers
Speaker 1: saying he will plead not guilty. Bloomerg's Amory Howden is
Speaker 1: there in the crowd outside New York's Supreme Court. It
Speaker 1: really seems to be more people, more jostling. How does
Speaker 1: it feel. Yeah, certainly since the last time we spoke
Speaker 1: just about an hour ago, they're more people are starting
Speaker 1: to gather. Many of these individuals, I would say the
Speaker 1: crowd is split fifty fifty those in favor and are
Speaker 1: here to support the former president and those that are
Speaker 1: here to support his indictment and this arraignment and want
Speaker 1: to see the end of Trump world. We also should
Speaker 1: know there's been a higher presence of the SECURE and
Speaker 1: the NYPD here and of course their journalists that want
Speaker 1: to capture a moment of history, because this is not
Speaker 1: just a former US president, but this is the presidential candidate,
Speaker 1: a presidential canidate, but the one that's leading in the
Speaker 1: polls for twenty twenty four. And one thing that has
Speaker 1: certainly been very apparent since the news of the indictment
Speaker 1: came about is Trump's campaign every day has been updating
Speaker 1: us on how much money the campaign has been bringing in,
Speaker 1: and at this moment it's north of eight million dollars.
Speaker 1: He has a very strong base, about thirty percent of
Speaker 1: the Republican Party, but this really has made other Republicans
Speaker 1: come out and also go against the Manhattan DA and
Speaker 1: in support of him and Marie. The judge is not
Speaker 1: allowing broadcasters in for the arraignment, but do we expect
Speaker 1: to hear from the former president? So I was speaking
Speaker 1: to someone part of Trump world just a little bit
Speaker 1: ago who was saying how there was this possibility the
Speaker 1: president would the former president would address the crowd. That's
Speaker 1: going to be obviously very difficult, right, this is a
Speaker 1: high hostile place. At times. I did see a physical
Speaker 1: altercation between two individuals earlier. But we do know that
Speaker 1: the former president for sure will be giving this primetime
Speaker 1: address at his residence in Florida mar Lago. So when
Speaker 1: he leaves the courthouse behind me, he will go back
Speaker 1: to Palm Beach and that is where he is going
Speaker 1: to address supporters and also some very strong Republicans that
Speaker 1: support him in Congress. We had here today the likes
Speaker 1: that you'd probably would see in mar Lago. Marjorie Taylor Green,
Speaker 1: a congresswoman from Georgia, as well as George Santos, a
Speaker 1: congressman enough far from here, from Long Island. These individuals
Speaker 1: came out and supported the president. You're going to see
Speaker 1: similar faces in mar Lago, and you're gonna hear similar
Speaker 1: rhetoric from the president. Remember he said that he was
Speaker 1: going to be addresident. He said there would be death
Speaker 1: and destruction Rivoden. Thank you, Caroline. That does it for
Speaker 1: this addition of Bloomberg technology. You do not forget to
Speaker 1: check out our podcast. There yeah so much to recap, Apples, Spotify, iHeart,
Speaker 1: wherever you get your podcast. This is Bloomberg