WEBVTT - Apple's CFO Change and Meta says White House Pressured Company to Censor Covid-19 Posts 0:00:02.600 --> 0:00:07.280 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.520 --> 0:00:13.840 From Mahart where innovation, money and power Collie in Silicon 0:00:13.920 --> 0:00:14.800 Vallet n Beyond. 0:00:15.160 --> 0:00:18.440 This is Bloomberg Technology with Caroline Hyde and. 0:00:18.600 --> 0:00:19.680 Ed Lovedlove. 0:00:33.440 --> 0:00:36.680 Live from New York and San Francisco. This is Bloomberg Technology. 0:00:36.920 --> 0:00:40.159 And there's change at Apple as the CFO mice three 0:00:40.200 --> 0:00:43.720 steps back and the iPhone maker promotes from within. We 0:00:43.800 --> 0:00:45.800 have the details on Apple's new finance chief. 0:00:46.680 --> 0:00:49.760 A Meta calls out the White House. CEO Mark Zuckerberg 0:00:49.800 --> 0:00:53.800 says the government pressured Facebook to censor their COVID post 0:00:53.840 --> 0:00:56.400 during the pandemic and he regrets giving in. 0:00:56.680 --> 0:01:00.760 Meanwhile, the NFL Kelsey Brothers wind big a one hundred 0:01:00.800 --> 0:01:03.880 million dollar podcast deal with Amazon after Taylor Swift helped 0:01:03.920 --> 0:01:04.759 spump the audience. 0:01:05.200 --> 0:01:08.800 JD dot Com five billion dollar share buy back positive 0:01:08.800 --> 0:01:11.479 for the US listed shares. Why it's a really tough 0:01:11.520 --> 0:01:14.080 environment right now for e commerce in China. This is 0:01:14.120 --> 0:01:17.920 something that is shareholder friendly while the macro picture deteriorates. 0:01:18.000 --> 0:01:19.120 And we're going to get a bit more on that 0:01:19.160 --> 0:01:19.400 as well. 0:01:19.480 --> 0:01:22.320 Kart, Yeah, because it is ugly out there for Pinduo 0:01:22.400 --> 0:01:26.160 Duo PDD. Once again, let's focus in on some that 0:01:26.200 --> 0:01:28.280 are trying to support the market others that are hurting 0:01:28.280 --> 0:01:31.440 the brand Vasthelka and Ryan, it really was a shock 0:01:31.480 --> 0:01:34.600 to the system that PDD wasn't doing as well as 0:01:34.600 --> 0:01:37.480 had been anticipated, that even the cheap stuff isn't selling 0:01:37.520 --> 0:01:39.800 in China. What do does that mean from a broader 0:01:39.840 --> 0:01:41.400 context when it comes to China. 0:01:42.280 --> 0:01:43.319 Warning thanks for having me. 0:01:43.440 --> 0:01:45.160 You know, there's a lot of concern about the strength 0:01:45.160 --> 0:01:47.720 of the Chinese economy right now, and seeing a company 0:01:47.880 --> 0:01:49.960 like this, which is so tied to the consumer, seeing 0:01:49.960 --> 0:01:53.720 them really give a pretty tepid outlook, pretty cautious, is 0:01:53.800 --> 0:01:56.840 certainly a reason to have some sort of broader concerns 0:01:56.880 --> 0:01:58.600 just about the state of things there and what the 0:01:58.600 --> 0:02:00.920 outlook is for China going for We did see that 0:02:00.960 --> 0:02:03.520 stock drop I think more than twenty percent yesterday. It 0:02:03.600 --> 0:02:05.320 is down a little bit more today. So there are 0:02:05.360 --> 0:02:07.760 just some broader concerns now about just the strength of 0:02:07.920 --> 0:02:09.880 you know, one of the biggest economies in the world. 0:02:10.800 --> 0:02:13.800 So ryanthjd dot com story is kind of a read 0:02:13.840 --> 0:02:17.120 through one where they are trying to do something to 0:02:17.440 --> 0:02:21.320 I guess, disassociate themselves with the wider e commerce picture 0:02:21.360 --> 0:02:24.280 in China and buybacks always cheer up investors. 0:02:25.720 --> 0:02:28.360 Yeah, absolutely, And this of course comes after Walmart recently 0:02:28.680 --> 0:02:30.960 closed outs at Stake and JD, so there's certainly been 0:02:31.000 --> 0:02:33.240 some costs for concern for those investors. Obviously they are 0:02:33.240 --> 0:02:35.160 trying to signal, you know, it's still a focus on 0:02:35.200 --> 0:02:37.760 scheerholder value and so forth. So yeah, five billion buyback 0:02:38.160 --> 0:02:39.279 never bad headline. 0:02:40.120 --> 0:02:43.320 I am just really interested in ultimately the context of 0:02:43.400 --> 0:02:46.800 China and appetite to be buying into what are sold 0:02:46.840 --> 0:02:49.680 off names? What point do we get lured back in 0:02:49.720 --> 0:02:52.960 Because we saw real volatility around US tech names at 0:02:52.960 --> 0:02:55.680 the start of August and people bought the dip. Why 0:02:55.720 --> 0:02:57.359 not in China at the moment, Ryan. 0:02:58.000 --> 0:03:00.280 I think there are just some broader macro cons learns 0:03:00.280 --> 0:03:03.080 about their economic outlook, whereas people are feeling a little 0:03:03.120 --> 0:03:06.320 bit more positive about the US people are anticipating rate cuts. 0:03:07.000 --> 0:03:08.880 It seems like a lot of the major megacap tech 0:03:08.919 --> 0:03:11.080 stocks here in the United States continue to post pretty 0:03:11.120 --> 0:03:15.000 strong fundamentals, pretty strong trends. AI remains a huge focus, 0:03:15.040 --> 0:03:17.840 and of course, you know, the biggest players in AI 0:03:17.960 --> 0:03:20.440 are all here in the US, and that's just you know, 0:03:20.840 --> 0:03:23.560 very easy decision I think for people to continue looking 0:03:23.560 --> 0:03:25.919 at US names, continue buying US big. 0:03:25.720 --> 0:03:30.280 Tech, that picture tells the story as of this morning session. 0:03:30.280 --> 0:03:33.920 Bloomberg's rhyme Bastelica, thank you very much. Let's get a 0:03:33.919 --> 0:03:36.840 closer look at tech stocks this morning and think about 0:03:36.960 --> 0:03:39.360 the equity markets and what is a massive week in 0:03:39.440 --> 0:03:44.400 each Chisholm is the director of Quantitative market Strategy Fidelity Investments. 0:03:44.440 --> 0:03:47.800 And there is this like big macro event happening on Wednesday. 0:03:47.800 --> 0:03:49.320 I don't know if you've heard about it. It's called 0:03:49.440 --> 0:03:52.640 Nvidia second quarter earnings. But what's so interesting is like 0:03:52.680 --> 0:03:56.400 the timing comes after many weeks of very clear capital 0:03:56.440 --> 0:04:00.000 expenditures guidance. So you track that data and you ask yourself, 0:04:00.320 --> 0:04:02.360 what does it tell us? I know that you look 0:04:02.360 --> 0:04:06.320 at capex to sales and you might have a different story. Denise, Yeah, 0:04:06.360 --> 0:04:07.360 I do have a different story. 0:04:07.400 --> 0:04:09.640 I mean, there is a lot of concern by investors 0:04:09.680 --> 0:04:11.920 around how much technology companies are going to have to 0:04:11.960 --> 0:04:14.760 spend in terms of CAPEX, and that might be a 0:04:14.840 --> 0:04:17.680 signal of sort of the peak of the cycle. But 0:04:17.720 --> 0:04:20.440 when you look at the data for the overall technology sector, 0:04:20.640 --> 0:04:23.560 CAPEX is just starting to pick up now. And when 0:04:23.560 --> 0:04:27.080 you look at capecs relative to sales, it's actually declined 0:04:27.240 --> 0:04:29.599 over the last year and it's in the bottom half 0:04:29.600 --> 0:04:32.360 of the distribution. I think that that is the unique 0:04:32.400 --> 0:04:36.359 part this time in terms of technology. The free cash 0:04:36.360 --> 0:04:39.920 flow generation is much much different than anything that we've 0:04:39.920 --> 0:04:43.280 seen in the past. So on that free cash flow generation, 0:04:43.680 --> 0:04:46.200 the stocks are actually still cheap on price to free 0:04:46.200 --> 0:04:48.360 cash flow on a relative basis versus the rest of 0:04:48.400 --> 0:04:51.960 the market, which actually cushions the blow to the extended 0:04:52.080 --> 0:04:55.680 fundamentals have peaked and may slow, so some of that 0:04:55.880 --> 0:04:58.320 mean reversion might actually be priced. 0:04:58.040 --> 0:05:03.200 In index level discussion to be had. You know, I 0:05:03.240 --> 0:05:05.800 know that you don't track a specific name, but there's 0:05:05.839 --> 0:05:08.240 this fantastic chart right which shows that when the S 0:05:08.279 --> 0:05:11.120 and P five hundred moves a percentage point nine direction, 0:05:11.200 --> 0:05:14.320 it's usually in Nvidia's fault and the market there's not 0:05:14.400 --> 0:05:17.880 much left thereafter. What do you make of that, the 0:05:17.960 --> 0:05:21.080 sort of dependence on that high concentration of single names 0:05:21.120 --> 0:05:23.440 at the index level, Denise. 0:05:23.720 --> 0:05:26.479 Yeah, we have a lot of data on historical market concentration, 0:05:26.560 --> 0:05:29.120 and it's true we haven't seen the market become this 0:05:29.279 --> 0:05:32.400 concentrated this quickly over the last year or be this 0:05:32.600 --> 0:05:37.520 concentrated since you know, basically the eighties or the late seventies. 0:05:37.839 --> 0:05:42.040 But that concentration level in and of itself doesn't necessarily 0:05:42.240 --> 0:05:44.599 mean it's a negative signal for the market going forward. 0:05:44.839 --> 0:05:49.360 The market can stay heavily concentrated for unextended period of time. 0:05:49.440 --> 0:05:51.800 We certainly saw this in the forties and fifties, which 0:05:51.800 --> 0:05:54.120 is not to say that that's the exact parallel, But 0:05:54.160 --> 0:05:55.840 I think what's more important to me, as much as 0:05:55.839 --> 0:05:59.320 there's been a bifurcation between cap weighted indusses and equal 0:05:59.320 --> 0:06:02.400 weighted indocy really lagging, I think that a lot of 0:06:02.440 --> 0:06:05.720 the signals that I'm seeing suggests that there might be 0:06:05.760 --> 0:06:08.520 a much more broadening out over the next year on 0:06:08.560 --> 0:06:12.720 a relative basis, where it's not just technology stocks being 0:06:12.760 --> 0:06:16.840 the dominant leaders, and the market might actually encompass more 0:06:16.920 --> 0:06:20.559 maybe interesst rate sensitives and more cyclical sectors outperforming as well. 0:06:20.720 --> 0:06:23.839 I think the unique part of this cycle was around 0:06:23.880 --> 0:06:29.200 technology fundamentals. Technology fundamentals did something on an aggregate level 0:06:29.240 --> 0:06:31.320 that I've never seen in my database going back to 0:06:31.360 --> 0:06:34.240 the sixties, which is go from bottom quartile growth bottom 0:06:34.440 --> 0:06:38.760 quartile growth to top decile growth in under a year. Well, 0:06:38.760 --> 0:06:42.720 when that happens, that begets that relative outperformance we've seen. 0:06:42.920 --> 0:06:45.159 But as the starting point from this level, it doesn't 0:06:45.200 --> 0:06:48.479 necessarily mean technology will lag the market, as those cash 0:06:48.480 --> 0:06:51.720 flows and earnings growth might actually be durable. But it 0:06:51.760 --> 0:06:54.760 does usually mean that it makes room for other sectors 0:06:54.800 --> 0:06:55.760 to outperform as well. 0:06:56.200 --> 0:06:59.880 What's so interesting, though, is how one sided the mack 0:07:00.120 --> 0:07:03.880 it is on the single name. At the moment, analysts 0:07:03.960 --> 0:07:06.839 sixty six of them say buy and VIDIA zero say sell. 0:07:07.000 --> 0:07:09.400 But then I go to the SMP more broadly, and 0:07:09.680 --> 0:07:12.400 the price targets just aren't that many ahead of where 0:07:12.440 --> 0:07:15.280 we currently trade at the moment at fifty six twenty eight, 0:07:15.400 --> 0:07:18.280 and well most of the analysts actually see lower than that. 0:07:18.560 --> 0:07:21.360 So when we do give up leadership so to speak, 0:07:21.360 --> 0:07:23.880 with the big tech names in the mag seven, is 0:07:23.920 --> 0:07:25.760 it not going to be If they lag, it won't 0:07:25.760 --> 0:07:28.200 be made up for by the other smaller players that 0:07:28.240 --> 0:07:29.200 suddenly do rally. 0:07:30.440 --> 0:07:31.560 Well, I think you could end. 0:07:31.560 --> 0:07:34.720 Up in this situation where the big names just potentially 0:07:34.760 --> 0:07:37.680 tread water with a catchup trade in the equoated indices. 0:07:37.920 --> 0:07:40.360 I think that the big difference that investors are concerned 0:07:40.360 --> 0:07:43.200 about is what we saw happen in two thousand, which 0:07:43.240 --> 0:07:45.720 is the mags let's call it the MAG seven this 0:07:45.800 --> 0:07:49.280 time versus the technology bubble last time was going down 0:07:49.400 --> 0:07:52.920 on an absolute basis. When you're talking about just maybe 0:07:53.000 --> 0:07:56.000 lagging or hanging in in terms of a relative perspective 0:07:56.160 --> 0:07:59.160 and growing into those multiples, I think that that's a 0:07:59.240 --> 0:08:02.520 much different story from a risk reward perspective, and it 0:08:02.600 --> 0:08:05.320 sets up the rest of the market that really hasn't 0:08:05.400 --> 0:08:08.280 seen the earnings growth recovery that we've seen in those 0:08:08.280 --> 0:08:11.920 cap weighted indices to still play out over time, which 0:08:11.960 --> 0:08:14.880 gives dominance to that equal weighted potential or down the 0:08:14.880 --> 0:08:16.760 cap spectrum relative performance. 0:08:18.120 --> 0:08:22.440 Do ultimately, though, does technology still look like it will 0:08:22.480 --> 0:08:27.000 outperform to the extent that we've almost become immune to look? 0:08:27.040 --> 0:08:29.040 I think it looks like a positive risk reward to me. 0:08:29.080 --> 0:08:32.400 And I say that because a after you've seen fundamental 0:08:32.480 --> 0:08:36.240 inflection like we've seen, the sector continues to outperform about 0:08:36.240 --> 0:08:39.120 seventy percent of the time because those free cash flows 0:08:39.120 --> 0:08:42.120 and earning's growth tends to be durable. And this goes 0:08:42.120 --> 0:08:44.280 back to the fact that when in a lot of 0:08:44.320 --> 0:08:47.640 my data twenty twenty two looked like either a very 0:08:47.679 --> 0:08:51.160 soft hard landing or a very hard soft landing, but 0:08:51.240 --> 0:08:53.920 it did look like a landing. And if that was 0:08:54.000 --> 0:08:56.200 in fact a landing, then we are in the early 0:08:56.280 --> 0:08:59.520 to mid stages of what could be a multiple year recovery, 0:08:59.520 --> 0:09:02.600 and that includes in terms of technology earnings growth. So 0:09:02.679 --> 0:09:06.079 if you couple that sort of durable cash flow on 0:09:06.320 --> 0:09:09.080 the valuation disconnect, which is to say that they're still 0:09:09.080 --> 0:09:11.199 on the bottom half of the distribution of relative free 0:09:11.200 --> 0:09:13.080 cash flow, I think you have a positive. 0:09:12.800 --> 0:09:16.560 Risk reward denise very quickly. Historically, when the S and 0:09:16.600 --> 0:09:19.679 P five hundred gains double digits in one h it 0:09:19.720 --> 0:09:22.360 does well in the second half of the year. Will 0:09:22.360 --> 0:09:24.400 that happen, that's correct. 0:09:24.840 --> 0:09:26.400 Well, I can't tell you if it will happen, But 0:09:26.480 --> 0:09:28.320 you know the math, which is a ball in motion, 0:09:28.480 --> 0:09:30.560 tends to stay in motion. And it's all around the 0:09:30.600 --> 0:09:34.640 fact that usually the stock market gets it right. And 0:09:34.679 --> 0:09:37.640 by that I mean it might actually be telling you 0:09:37.760 --> 0:09:40.960 something that you don't really know already, which is that 0:09:41.160 --> 0:09:43.440 more of the S and P five hundred might be 0:09:43.520 --> 0:09:45.760 discounting a hard landing than you think. 0:09:46.280 --> 0:09:49.640 Just such deep historical analysis, we love it Denistchism, thank 0:09:49.679 --> 0:09:51.040 you so much for joining you great to be here, 0:09:51.160 --> 0:09:54.520 Director of Quantitative Marketing Strategy over at Fidelity Investments. 0:09:54.720 --> 0:09:55.880 I meanwhile coming up. 0:09:56.080 --> 0:09:57.800 Close to look at Polaris Dawn. 0:09:58.320 --> 0:09:59.000 That didn't happen. 0:09:59.040 --> 0:10:02.880 SpaceX's first spacewalk mission has been delayed ed. 0:10:02.920 --> 0:10:05.200 What are you watching? I'm not going to share as 0:10:05.200 --> 0:10:07.560 a Walmart story that broke in the last ten minutes. 0:10:07.720 --> 0:10:11.320 The company wants to expand its online marketplace. This is 0:10:11.440 --> 0:10:15.319 the digital platform for third party vendors. You're thinking about 0:10:15.320 --> 0:10:17.480 competition with the likes of Amazon and Etsy and what 0:10:17.480 --> 0:10:20.079 they're doing. It's just adding more stuff to it. Think 0:10:20.120 --> 0:10:23.360 about pre owned watches, collectible trading cards. Is all part 0:10:23.640 --> 0:10:25.840 of an announcement they made out of San Francisco this 0:10:25.920 --> 0:10:29.559 morning for their seller's conference. Not doing much. The booster 0:10:29.600 --> 0:10:31.640 stock up three tens to one percent. Well track it. 0:10:31.840 --> 0:10:33.800 This has been a big technology. 0:10:47.840 --> 0:10:51.359 Taking a look now at SpaceX. The company has delayed 0:10:51.400 --> 0:10:54.440 that launch of a rocket carrying four private astronauts to space, 0:10:54.760 --> 0:10:57.000 part of what was going to be a groundbreaking mission 0:10:57.040 --> 0:10:59.480 aimed at performing the world's first commercial spacewalk. 0:11:00.040 --> 0:11:00.760 Pilaris Dawn. 0:11:01.120 --> 0:11:02.920 You want to get out to be Megsla and Grass 0:11:02.920 --> 0:11:04.960 who's been all over this once again. 0:11:05.080 --> 0:11:05.560 Helium. 0:11:05.760 --> 0:11:08.160 It's a recurring theme with these space issues. 0:11:09.320 --> 0:11:12.720 Yeah, helium is prone to leaking. It is a small molecule, 0:11:12.840 --> 0:11:16.959 so it can find its way out of various small crevices. 0:11:17.000 --> 0:11:20.080 But this is just comes with the territory of following 0:11:20.160 --> 0:11:23.240 rockets and rocket launches. There's always some kind of delay, 0:11:23.360 --> 0:11:25.960 but hopefully it won't be too lengthy for and hopefully 0:11:26.000 --> 0:11:27.480 we'll see this launch takeoff soon. 0:11:28.520 --> 0:11:30.880 They basically have a backup window every morning at the 0:11:30.920 --> 0:11:33.679 same time, right the way through the weekend, so I 0:11:33.679 --> 0:11:36.160 imagine it will go off. A big part of this 0:11:36.280 --> 0:11:39.240 is not necessarily the crew of Claris Dawn. It's the 0:11:39.320 --> 0:11:41.560 space suits, and you wrote about that last week in 0:11:41.600 --> 0:11:46.120 the Business of Space newsletter, like and subscribe. Tell me 0:11:46.160 --> 0:11:48.280 about the space suits and why they're so key to 0:11:48.760 --> 0:11:50.800 what's due to take place in the mission. 0:11:51.840 --> 0:11:52.120 Yeah. 0:11:52.160 --> 0:11:54.600 So, for people who have followed SpaceX up until now, 0:11:54.679 --> 0:11:58.199 you might be familiar with SpaceX's so called space suits. 0:11:58.240 --> 0:12:00.560 But the space suites that we've seen up until this 0:12:00.600 --> 0:12:03.240 point are really just pressure suits which are used by 0:12:03.280 --> 0:12:06.360 the astronauts. They're worn when they fly to space when 0:12:06.360 --> 0:12:09.559 they come back from space, and they're really mostly meant 0:12:09.600 --> 0:12:11.440 to be used in the case of an emergency, in 0:12:11.440 --> 0:12:15.640 case the capsule depressurizes or there's some unforeseen event. What 0:12:15.800 --> 0:12:20.199 SpaceX built for this specific purpose is a space walking spacesuit, 0:12:20.240 --> 0:12:23.200 and it's really meant to be used for this exact 0:12:23.520 --> 0:12:27.839 reason for being able to leave the vehicle perform repairs 0:12:27.880 --> 0:12:31.840 on the outside of a spacecraft. For this mission, SpaceX 0:12:31.920 --> 0:12:35.079 is just going to test out the durability of the suits. 0:12:35.120 --> 0:12:37.920 But these suits look pretty cool. They definitely look like 0:12:38.000 --> 0:12:41.720 the sleek white design of the pressure suits that we've seen, 0:12:42.120 --> 0:12:44.560 but they're supposed to be able to withstand the vacuum 0:12:44.600 --> 0:12:47.600 of space. Even better, they have heads up displays inside 0:12:47.640 --> 0:12:52.200 of them, and they have the signature SpaceX sile that 0:12:52.240 --> 0:12:53.560 we've all come to know and love. 0:12:55.600 --> 0:12:58.079 I mean, absolutely fascinating as to whether or not we're 0:12:58.080 --> 0:13:00.680 going to be missing in I mean the new way 0:13:00.679 --> 0:13:03.640 in which we see the suits evolved. Lauren ed was 0:13:03.679 --> 0:13:05.240 just tell it, talking us through the fact that we're 0:13:05.240 --> 0:13:08.320 going to be seeing a new launch window every single day. 0:13:08.320 --> 0:13:11.880 But ultimately, how quickly can things like helium lenk be recovered. 0:13:11.480 --> 0:13:15.480 From It's hard to speculate on this. I think when 0:13:15.520 --> 0:13:18.000 it comes to SpaceX, I am always amazed at how 0:13:18.080 --> 0:13:21.040 quickly they're able to kind of turn things around. If 0:13:21.080 --> 0:13:23.679 you recall, you know, about a month ago they had 0:13:23.720 --> 0:13:27.440 a failure with their Falcon nine rocket while launching some 0:13:27.559 --> 0:13:30.440 Starling satellites, and they were able to get back to 0:13:30.480 --> 0:13:33.440 launch within just a couple of weeks. So SpaceX has 0:13:33.440 --> 0:13:37.719 definitely garnered a lot of experience by launching so frequently, 0:13:37.840 --> 0:13:41.440 so it may be something that is easy to fix 0:13:42.120 --> 0:13:44.439 with this particular mission. I don't think SpaceX wants to 0:13:44.480 --> 0:13:47.240 be taking any chances. It's probably one of their riskiest 0:13:47.280 --> 0:13:49.320 missions that they've done to date. They'll be going to 0:13:49.880 --> 0:13:52.960 a much higher altitude than astronauts have gone to in 0:13:53.000 --> 0:13:55.520 a very long time, so I think they just want 0:13:55.559 --> 0:13:57.520 to make sure everything is buttoned up, so it's possible 0:13:57.520 --> 0:14:01.000 they might take some extra care with this particular healing week. 0:14:01.800 --> 0:14:03.960 I mean, I mean there is risk in this mission 0:14:04.080 --> 0:14:08.439 seven hundred kilometer altitude approximately for the spacewalk. Only two 0:14:08.480 --> 0:14:10.400 of them will do it. And what I find so 0:14:10.440 --> 0:14:13.680 amazing is like the cruising quarantine basically right now, and 0:14:13.720 --> 0:14:17.000 yet Jared Isaacman's on Twitter X saying or don't worry, 0:14:17.040 --> 0:14:19.480 we know exactly what's going on. We're talking with SpaceX. 0:14:19.720 --> 0:14:21.560 He's kind of key to this because he went on 0:14:21.600 --> 0:14:22.760 Inspiration four as well. 0:14:23.920 --> 0:14:27.600 Yeah, Jared Eisaman has definitely become an interesting SpaceX figure. 0:14:28.480 --> 0:14:32.520 He has bankrolled the development of this program and also 0:14:32.680 --> 0:14:36.600 helped to fund this flight, and he'll be flying again 0:14:37.200 --> 0:14:40.080 in the future too. He didn't just buy this one flight. 0:14:40.160 --> 0:14:43.400 He has kind of invested in an entire program, research 0:14:43.400 --> 0:14:45.880 and development program called Polaris, and this just is the 0:14:45.880 --> 0:14:49.360 first part of that. It'll eventually culminate with the first 0:14:49.440 --> 0:14:53.400 crude launch of SpaceX's Starship Rocket, which is that massive 0:14:53.480 --> 0:14:56.360 vehicle that they've been building in South Texas. I assume 0:14:56.400 --> 0:14:58.920 that Jared will be on that as well. We'll have 0:14:58.960 --> 0:15:00.600 to wait and see that because we still have some 0:15:00.680 --> 0:15:04.720 development road to get through. But yeah, he's definitely become 0:15:05.200 --> 0:15:07.280 a dominant figure in the SpaceX community. 0:15:08.200 --> 0:15:11.520 Okay, see three point thirty eight am Eastern time tomorrow, 0:15:11.520 --> 0:15:14.400 bloom Osler and Grush maybe thank you. Another big story 0:15:14.440 --> 0:15:18.360 we're tracking is Apple. Longtime Apple CFO Luka Maistrie will 0:15:18.400 --> 0:15:20.600 step down from the job at the end of the year. 0:15:20.680 --> 0:15:24.560 Handing the role to top deputy deputy Kevin Perek after 0:15:24.600 --> 0:15:26.840 more than a decade. More in the announcement, we go 0:15:26.880 --> 0:15:30.720 to Bloomberg's Mark German, I guess why why step back 0:15:30.760 --> 0:15:32.360 and why the number two getting promoted? 0:15:33.960 --> 0:15:37.160 Yeah, I mean, this is really not that interesting in 0:15:37.200 --> 0:15:39.760 the sense that this has been long planned. Apple has 0:15:39.800 --> 0:15:43.240 been telegraphing this for the last year or so. If 0:15:43.280 --> 0:15:45.960 you recall, at the end of last year, one of 0:15:46.040 --> 0:15:50.360 Luca ma Astree's top two deputies, Cii Casey, she resigned 0:15:50.400 --> 0:15:53.440 and then later became the CFO of Sonos, and to 0:15:53.440 --> 0:15:55.360 me at the time, that became pretty clear they were 0:15:55.400 --> 0:15:58.840 preparing for a transition and that it was not going 0:15:58.880 --> 0:15:59.760 to be her job, but. 0:15:59.760 --> 0:16:02.800 Rather Kevin Perek's. John Kevin Perek had. 0:16:02.600 --> 0:16:07.360 A series of responsibilities related to market research, financial analysis, 0:16:07.520 --> 0:16:12.480 preparation for earnings, investor relations, and then he picked up 0:16:12.520 --> 0:16:16.360 Saiori Casey's responsibility over financial planning and analysis at. 0:16:16.280 --> 0:16:17.240 The end of last year. 0:16:17.640 --> 0:16:21.160 He actually moved into her office at that time, and 0:16:21.240 --> 0:16:23.560 he has been the heir apparent for several months now 0:16:23.600 --> 0:16:27.400 to Luca Astree. He had been shadowing may Street. He 0:16:27.440 --> 0:16:30.080 had been working very closely with Apple's executive team and 0:16:30.160 --> 0:16:32.520 Tim Cook. So this is something that has been in 0:16:32.560 --> 0:16:37.120 the works for several months now. Luca just turned sixty, right, 0:16:37.320 --> 0:16:39.760 He's been in the corporate environment. He's been a CFO 0:16:40.480 --> 0:16:43.560 for decades now. He's obviously made a lot of money 0:16:43.560 --> 0:16:48.160 at Apple. Luca actually at some points in his career 0:16:48.200 --> 0:16:51.840 has commuted many, many miles to the Apple campus. 0:16:51.960 --> 0:16:53.840 This is obviously a very tough role. 0:16:53.880 --> 0:16:55.200 It's not a role you want to be in for 0:16:55.280 --> 0:16:58.840 more than a decade probably with everything at stake. He 0:16:58.880 --> 0:17:01.600 took over for Peter Openhimer in twenty fourteen. 0:17:01.280 --> 0:17:02.640 So it made sense. 0:17:02.960 --> 0:17:05.760 The bigger picture here is you're sort of probably going 0:17:05.800 --> 0:17:09.320 to see a big turnover of Apple's executive team over 0:17:09.359 --> 0:17:12.439 the next few years. And this strategy where they're not 0:17:13.200 --> 0:17:17.239 really allowing these executives to fully retire and just you know, 0:17:17.359 --> 0:17:20.480 play golf or you know, fly their planes or what 0:17:20.520 --> 0:17:22.840 have you and have them stick around a smaller role. 0:17:23.359 --> 0:17:24.400 This is now the. 0:17:24.240 --> 0:17:27.240 Third executive in a row in the last four years 0:17:27.240 --> 0:17:30.680 that we've seen do this. The question is how long 0:17:30.960 --> 0:17:33.240 is Luca going to stick around in this new role. 0:17:34.119 --> 0:17:37.400 And then one thing I know investors are curious about Perak. 0:17:38.400 --> 0:17:41.440 Everything I've been told and everything that I believe is 0:17:41.480 --> 0:17:43.720 that he's ready for this role. And I don't expect 0:17:43.720 --> 0:17:44.680 any hiccups. 0:17:45.240 --> 0:17:48.000 As you say, he's going to be overseeing information technology 0:17:48.000 --> 0:17:52.600 and real estate functions, we understand, but in that reduced role. Meanwhile, Mark, 0:17:52.920 --> 0:17:54.840 all of this is in the broader context of they've 0:17:54.840 --> 0:17:57.080 got to still be selling shit phones. They've got to 0:17:57.080 --> 0:17:57.720 be innovating. 0:17:57.840 --> 0:17:59.560 And September the ninth. 0:17:59.400 --> 0:18:01.719 We understand is and we're going to be getting our 0:18:01.760 --> 0:18:03.440 eyes on the latest new phones. 0:18:04.720 --> 0:18:07.880 Yeah, September ninth, the iPhone sixteen line, new AirPods, new 0:18:07.880 --> 0:18:11.520 Apple Watches will all be introduced, and then we'll get 0:18:11.560 --> 0:18:15.000 the performance of how these phones did from Kevin Krek 0:18:15.080 --> 0:18:17.640 at the end of January that during his first earnings 0:18:17.680 --> 0:18:21.119 call SCFO, and all expectations are we're going to see 0:18:21.480 --> 0:18:25.440 some decent growth in the holiday period over the iPhone 0:18:25.440 --> 0:18:28.359 fifteen pro. There were no major new Apple watches a 0:18:28.400 --> 0:18:31.359 year ago, no major new AirPods a year ago, so 0:18:31.400 --> 0:18:33.040 they've sort of set themselves up for a little bit 0:18:33.080 --> 0:18:35.000 of a layup to give themselves some nice growth in 0:18:35.040 --> 0:18:35.840 the holiday period. 0:18:36.280 --> 0:18:47.040 Wel Gumman, as always, we thank you so much time 0:18:47.080 --> 0:18:49.880 now for talking tech. First up, LG Electronics is considering 0:18:49.880 --> 0:18:53.000 an initial public offering for his India business to having 0:18:53.040 --> 0:18:55.919 a booming stock market to help hit a target seventy 0:18:55.920 --> 0:18:59.200 five billion dollars in electronics revenue by twenty thirty. Here's 0:18:59.200 --> 0:19:01.840 what LGCS and William Show had to say about the 0:19:01.840 --> 0:19:03.400 market opportunity in India. 0:19:04.240 --> 0:19:08.200 In India, we boast a number one market share in 0:19:08.280 --> 0:19:12.200 every single product. So as you know, India is one 0:19:12.200 --> 0:19:16.359 of the fastest growing markets in the world and the 0:19:16.400 --> 0:19:21.960 India will be continued to be a key market for 0:19:22.320 --> 0:19:28.960 our growth. But it's not about just the product sales. 0:19:29.520 --> 0:19:33.080 We aim to be the national brand in India. So 0:19:33.200 --> 0:19:39.639 as a company who have grown and loved by Indian people, 0:19:39.800 --> 0:19:44.879 we understand we should grow with Indian people and providing 0:19:44.960 --> 0:19:50.760 the product and solutions which will make eventually their life better. 0:19:51.440 --> 0:19:53.520 And to the. 0:19:53.480 --> 0:19:58.439 IPO, yeah, I understand there's increased interest in Indian market 0:19:58.680 --> 0:20:00.760 among global investories. 0:20:01.600 --> 0:20:03.600 It's the first time in South Korean company has spoken 0:20:03.640 --> 0:20:07.399 publicly about an Indian debut, subject of persistent market and 0:20:07.440 --> 0:20:10.560 media speculation. Plus Sony while it's raising its price of 0:20:10.600 --> 0:20:14.160 its PlayStation five in Japan by nineteen percent to nearly 0:20:14.320 --> 0:20:17.119 eighty thousand Japanese yen or five hundred and fifty US dollars, 0:20:17.160 --> 0:20:20.280 almost four years into the console's life cycle. The surprise 0:20:20.400 --> 0:20:23.600 move comes even as PS five sales actually slowed, and 0:20:23.720 --> 0:20:26.199 Sony is widely expected to refresh its offering with a 0:20:26.200 --> 0:20:30.080 more powerful Mint cycle revamp of the console in coming months. 0:20:30.320 --> 0:20:31.879 One they all watching, I'm sure ed, what have we 0:20:31.960 --> 0:20:32.560 got coming up? 0:20:33.200 --> 0:20:37.359 Okay, big story Mark Zuckerberg alleging that Facebook was pressured 0:20:37.640 --> 0:20:41.200 by the US government to censor content related to COVID 0:20:41.320 --> 0:20:55.320 nineteen during the pandemic. That story's next. This is Bloomberg Technology. 0:20:58.720 --> 0:21:01.159 Welcome back to Bloomberg te anology of Karaine Hyde in 0:21:01.200 --> 0:21:01.720 New York. 0:21:02.520 --> 0:21:05.840