WEBVTT - US Chip Curbs Impact, Netflix and Tesla Earnings 0:00:01.440 --> 0:00:06.760 From Marhard. We're Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:07.080 --> 0:00:11.120 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:25.079 --> 0:00:27.479 I'm Caroline Heide of Bloomberg's Weld headquarters in New York 0:00:27.920 --> 0:00:29.560 and Omed Lovelow in San Francisco. 0:00:29.760 --> 0:00:31.920 This is Bloomberg Technology coming up. 0:00:32.040 --> 0:00:32.680 Chip makers. 0:00:32.760 --> 0:00:35.400 They worn on the impact of the US curbs on 0:00:35.479 --> 0:00:37.480 China and the stocks they drop. 0:00:37.680 --> 0:00:39.559 Will break down everything you need to know. 0:00:40.400 --> 0:00:43.760 Past we push ahead to earnings. Is Netflix and Tesla 0:00:44.240 --> 0:00:46.680 prepared to report results after the bell and. 0:00:46.600 --> 0:00:48.760 We returned to our New York Tech Week conversations. 0:00:48.760 --> 0:00:50.920 We're going to be discussing the state of fintech and 0:00:51.040 --> 0:00:52.000 search for talent here. 0:00:52.159 --> 0:00:54.520 I think China is the key story, particularly in the 0:00:54.520 --> 0:00:57.720 context of US technology export curbs to China. 0:00:57.880 --> 0:01:01.080 I want to first go to Europe ASML company. 0:01:00.720 --> 0:01:06.240 A maker of chip making equipment, and basically short story, 0:01:06.280 --> 0:01:09.800 they had earnings not good, but the proportion of what 0:01:10.040 --> 0:01:13.680 the orders they're getting is increasingly from China. Ironically, so 0:01:13.720 --> 0:01:16.920 they've had to come out and address the latest expansion 0:01:16.920 --> 0:01:19.720 of curbs. In twenty twenty three, around ten to fifteen 0:01:19.800 --> 0:01:22.440 percent of their shipments are going to be impacted by 0:01:22.440 --> 0:01:24.640 these new restrictions. We're going to talk to our analysts 0:01:24.680 --> 0:01:27.600 about what is going on here in just a moment's time. 0:01:27.760 --> 0:01:31.080 The more direct impact as well is on video dropping 0:01:31.080 --> 0:01:33.000 for a second straight day on a two day basis. 0:01:33.000 --> 0:01:35.720 We're heading for our biggest two day drop since December 0:01:35.760 --> 0:01:39.360 twenty twenty two. And they issued an EIGHTK after market. 0:01:39.360 --> 0:01:42.280 They reiterated what they told us on Bloomberg Technology Caroline, 0:01:42.280 --> 0:01:45.840 which is, Yeah, no near term impact of financials, but 0:01:45.959 --> 0:01:49.040 basically this is going to impact our ability to service 0:01:49.080 --> 0:01:54.480 our existing customers and develop new products. That is a concern, particularly. 0:01:54.080 --> 0:01:54.560 For in video. 0:01:54.640 --> 0:01:57.600 Let's get more detail and analysis on this and bring 0:01:57.600 --> 0:02:00.680 in at man deep scene of Bloomberg intelligen and so, Mandy, 0:02:00.840 --> 0:02:04.320 what we're talking about here is specifically a eight hundred 0:02:04.640 --> 0:02:08.720 and h eight hundred China specific chips being caught by 0:02:08.760 --> 0:02:12.720 increased curves. How do you analyze that sort of tangible 0:02:12.760 --> 0:02:14.840 impact on the industry in twenty twenty three. 0:02:15.400 --> 0:02:18.280 Yeah, Look, I mean we know China revenue is about 0:02:18.320 --> 0:02:22.360 twenty percent of in videos overall revenue, and there is 0:02:22.639 --> 0:02:27.040 likely some pull forward of that revenue. Given this wasn't 0:02:27.080 --> 0:02:30.240 a complete surprise, you know, we're talking about these curves, 0:02:30.280 --> 0:02:34.440 and then I definitely think there was a pull forward element, 0:02:34.480 --> 0:02:37.640 which is why the company is probably saying there won't 0:02:37.639 --> 0:02:40.640 be any near term impact. But down the line, you 0:02:40.720 --> 0:02:43.640 have to ask yourself. You know about the customer base 0:02:43.760 --> 0:02:47.560 of n VIDEOS chips, and it's mostly the hyperscalers. Hyperscalers 0:02:47.600 --> 0:02:50.720 are about fifty percent of all the buyers of these 0:02:50.800 --> 0:02:53.440 GPUs right now, and there are two or three big 0:02:53.520 --> 0:02:57.359 hyperscalers in China. So if they're not able to get 0:02:57.360 --> 0:03:00.240 their chips for AI training, which is the primary use 0:03:00.280 --> 0:03:02.920 case here, I think that will have an impact, but 0:03:03.040 --> 0:03:06.080 near term impact probably is muted because of that pull 0:03:06.120 --> 0:03:06.840 forward aspect. 0:03:07.240 --> 0:03:08.040 Interesting muted. 0:03:08.080 --> 0:03:10.520 We're down by some ten percent over the last thirty days, 0:03:10.560 --> 0:03:13.520 and indeed, more broadly, we saw more than seventy billion 0:03:13.600 --> 0:03:16.680 dollars shed from the overall well chip stocks. When you're 0:03:16.680 --> 0:03:21.120 looking at the semiconductor indices, how are you anticipating China 0:03:21.240 --> 0:03:23.480 US two tug back or some of the valuation run 0:03:23.520 --> 0:03:25.360 up that we've had because it's such a mixed picture 0:03:25.400 --> 0:03:27.600 for chip makers out there. More broadly, we're just talking 0:03:27.600 --> 0:03:30.240 about a SML and woful numbers coming from them. 0:03:30.320 --> 0:03:30.519 Yeah. 0:03:30.520 --> 0:03:32.400 I mean in the case of Nvidia, you had a 0:03:32.440 --> 0:03:35.560 streak of upward revisions and to the extent, the bogie 0:03:35.640 --> 0:03:39.000 for twenty twenty five is eighty billion in data center revenue. 0:03:39.080 --> 0:03:41.600 Now when you look at, you know, the incremental data 0:03:41.640 --> 0:03:45.320 center spend right now, every dollar is going towards AI 0:03:45.400 --> 0:03:48.880 chips and networking, and clearly that will lot change. So 0:03:48.920 --> 0:03:52.080 some of that, you know, chips that in Vidia can't 0:03:52.080 --> 0:03:55.080 sell to China will be taken by somebody else. 0:03:55.760 --> 0:03:56.320 And I've no. 0:03:56.320 --> 0:03:59.200 Doubt that the company's undershipping demand right now. 0:03:59.400 --> 0:04:01.400 But that eight billion number. 0:04:01.240 --> 0:04:04.000 It's a very high bogie because the overall data spend 0:04:04.560 --> 0:04:07.160 center spend right now is close to fifty to sixty 0:04:07.200 --> 0:04:10.000 billion dollars when you add all the capex amounts. So 0:04:10.040 --> 0:04:12.520 clearly for in Video to reach that target in twenty 0:04:12.560 --> 0:04:16.240 twenty five, they need demand from everywhere, including China, and 0:04:16.279 --> 0:04:18.760 I think that's what is at stake here in terms 0:04:18.800 --> 0:04:20.839 of what kind of impact it will have two years 0:04:20.839 --> 0:04:21.560 down the line. 0:04:22.279 --> 0:04:26.040 Mandy, this is a story if there is one. ASML 0:04:26.400 --> 0:04:29.359 is the company which makes the machines that make the chips, 0:04:29.800 --> 0:04:32.919 and its bookings plunged forty two percent in the courter 0:04:33.040 --> 0:04:37.600 gone because there isn't demand broadly out there, but demand 0:04:37.680 --> 0:04:41.880 from China doubled. In other words, proportion of orders for 0:04:41.960 --> 0:04:45.080 chip making equipment from China doubled. And yet in that 0:04:45.160 --> 0:04:49.920 same twenty four hour period this company learned about expanded 0:04:50.360 --> 0:04:54.240 export curbs on chip making equipment. How complexes that explain 0:04:54.279 --> 0:04:54.760 it to us? 0:04:55.000 --> 0:04:57.360 I mean, look at the supply chains right now, So 0:04:57.480 --> 0:05:00.159 the fabs are all based in Taiwan. The assembly is 0:05:00.160 --> 0:05:02.919 being done in China, So clearly, you know, it's not 0:05:03.000 --> 0:05:07.520 a surprise that your latest end equipment is being needed 0:05:07.600 --> 0:05:11.000 in China because they want to, you know, keep doubling 0:05:11.040 --> 0:05:14.040 down on their ability to assemble and manufacture a lot 0:05:14.080 --> 0:05:16.719 of these chips. But at the same time, I feel 0:05:16.760 --> 0:05:19.359 the big driver for a company like a SML, or 0:05:19.400 --> 0:05:23.320 for that matter, the semicap equipment complex is the diversification 0:05:23.520 --> 0:05:27.920 aspect geographically, and every government right now is trying to 0:05:27.960 --> 0:05:31.880 make sure that they have local semi fab manufacturing and 0:05:31.960 --> 0:05:35.320 they want to get those equipments in the region where 0:05:35.360 --> 0:05:39.000 they these companies are operating. So long term, I do 0:05:39.080 --> 0:05:44.040 think the drivers are there for equipment companies, especially eue s. 0:05:44.200 --> 0:05:48.360 In the case of ASML, but near term dynamics, obviously 0:05:48.440 --> 0:05:51.240 you can't take China out of the equation given all 0:05:51.279 --> 0:05:53.080 the manufacturing is being done over there. 0:05:53.680 --> 0:05:56.640 Fascinating to SMLC actually said our Chinese customers say, we 0:05:56.680 --> 0:05:59.080 are happy to take the machines that others don't want 0:05:59.080 --> 0:06:01.039 at the moment. It's just questions how long they can 0:06:01.080 --> 0:06:03.240 actually be shipping them there, manly saying always great to 0:06:03.240 --> 0:06:06.240 have them on of course from Bloomberg Intelligence and look, 0:06:06.279 --> 0:06:08.240 this picture is a difficult one we have from the 0:06:08.279 --> 0:06:12.279 CFO of ASML really talking about a very dynamic macro 0:06:12.320 --> 0:06:15.040 picture coming from China. So let's get into that picture 0:06:15.040 --> 0:06:17.080 a little bit more with Amy Selco, a partner at 0:06:17.080 --> 0:06:19.640 all bright Stonebridge Group, which is a part of Denton's 0:06:19.640 --> 0:06:23.000 Global Advisors. And your expertise is needed here because there 0:06:23.000 --> 0:06:26.000 are so many clouds, whether it be due political making, 0:06:26.000 --> 0:06:29.280 whether it's a US pushing against shipments to China, and 0:06:29.320 --> 0:06:31.520 then there's of course the Chinese economy, which can't really 0:06:31.560 --> 0:06:34.320 get a clear read on. Start with the economy, how 0:06:34.360 --> 0:06:37.320 much do you think demand is there for technology from 0:06:37.520 --> 0:06:39.360 international imports right now? 0:06:40.480 --> 0:06:45.560 Oh, demand is huge because that international technology is so 0:06:45.720 --> 0:06:50.440 important for China to continue to push its economic recovery. 0:06:50.920 --> 0:06:53.760 Good news coming out from China, as you saw with 0:06:53.880 --> 0:06:57.400 the Q three three numbers beating expectations four point nine 0:06:57.400 --> 0:07:01.960 percent growth in Q three, but it is a slowing 0:07:02.000 --> 0:07:06.320 economy and the recovery is far from certain if China 0:07:06.440 --> 0:07:12.080 doesn't have access to that technology. Clearly investment is going 0:07:12.120 --> 0:07:15.400 to continue to be in technology to try to have 0:07:15.560 --> 0:07:21.840 indigenous technologies replace this uncertainty around access to global technology. 0:07:22.080 --> 0:07:25.160 But in the very short term, of course, Chinese demand 0:07:25.240 --> 0:07:29.240 is going to continue to be significant for these technology imports. 0:07:30.560 --> 0:07:32.360 Amy, let's head over to China. 0:07:32.440 --> 0:07:35.440 The Belton Road Forum of President G kind of made 0:07:35.480 --> 0:07:42.200 this thinly veiled comment directed at the US. I'm sure 0:07:42.280 --> 0:07:46.000 that downplaying basically how much emphasis you should look at 0:07:46.000 --> 0:07:49.720 the progress and development of others and the risk of 0:07:49.800 --> 0:07:54.480 economic interdependence. I'm assuming that President G was talking in 0:07:54.520 --> 0:07:59.200 the context of technology and technology exports. Are you worried 0:07:59.240 --> 0:08:02.320 about about the sort of posturing on both sides here? 0:08:03.520 --> 0:08:07.640 Well, certainly, absolutely, for all the clients that we serve, 0:08:07.760 --> 0:08:12.400 it is a significant worry about where are those geopolitical 0:08:12.520 --> 0:08:17.160 risks going In the wake, of course of what's happening 0:08:17.600 --> 0:08:21.800 in Gaza, right now, the fact that Russia and China, 0:08:22.680 --> 0:08:25.720 China's leaders are together in Beijing right now, as the 0:08:25.760 --> 0:08:29.480 President of course is in Israel, and then we'll come 0:08:29.480 --> 0:08:32.000 back to the United States to welcome the leadership of 0:08:32.040 --> 0:08:36.160 the European Union here. And so there are these discussions 0:08:36.200 --> 0:08:41.240 about how geopolitics are impacting interdependence, and I think that 0:08:41.400 --> 0:08:44.720 is what President She was getting at in that reference. 0:08:45.080 --> 0:08:47.920 He of course is celebrating a ten year anniversary of 0:08:47.960 --> 0:08:52.800 the Belton Road Initiative, welcoming foreign leaders from a number 0:08:52.800 --> 0:08:56.320 of countries, representatives from more than one hundred and thirty countries, 0:08:56.360 --> 0:09:00.880 and so trying to tout the relevance of China on 0:09:01.040 --> 0:09:05.920 the geopolitical stage. At the same time that obviously the 0:09:06.080 --> 0:09:09.880 US and China disagree on some fundamental issues. And while 0:09:09.920 --> 0:09:13.319 communicating again and that's a very positive thing, we're all 0:09:13.360 --> 0:09:17.559 waiting to see what that communication does. Will it stabilize 0:09:17.559 --> 0:09:20.800 the relationship or is it only a temporary law as 0:09:20.840 --> 0:09:25.200 the relationship continues to get more challenging because of these 0:09:25.240 --> 0:09:29.000 export controls, because of the US and China disagreeing on 0:09:29.080 --> 0:09:33.880 issues around Ukraine, around the war that Israel is waging 0:09:33.920 --> 0:09:38.600 against Hamas right now, and other issues around economic interdependence, 0:09:39.080 --> 0:09:42.120 something that she Jinping is worried about too. But again 0:09:42.280 --> 0:09:46.600 in the short term, he needs that technology input from 0:09:46.800 --> 0:09:50.160 American companies and others into China. 0:09:50.240 --> 0:09:54.480 I don't think geopolitical risks could be more complex, Amy, 0:09:54.760 --> 0:09:58.160 and you've put that very clearly to us. In that 0:09:58.280 --> 0:10:01.439 global picture right now, talk to us about the clients 0:10:01.640 --> 0:10:05.440 and companies that I just think of m CEO, for example, 0:10:05.480 --> 0:10:07.840 a company recently listed here in the United States. It's 0:10:07.960 --> 0:10:11.040 UK based, it's international in terms of its focus, and 0:10:11.080 --> 0:10:14.840 the CEO reading has was at a conference yesterday just saying, look, 0:10:15.240 --> 0:10:17.520 this is so difficult to be able to just cut 0:10:17.559 --> 0:10:20.880 off the technology from flowing into the China, and it 0:10:20.920 --> 0:10:22.960 says it's a very hard problem to solve just coming 0:10:23.040 --> 0:10:25.240 up with a list of components that are deemed critical 0:10:25.520 --> 0:10:28.240 and applying some sort of kind of guidance against it. 0:10:28.400 --> 0:10:30.760 How difficult is it for your clients to navigate this 0:10:30.880 --> 0:10:31.280 right now? 0:10:32.520 --> 0:10:36.240 It is harder than ever, that's right, Caroline, because companies 0:10:36.280 --> 0:10:40.640 are trying to gauge where are there truly national security 0:10:40.679 --> 0:10:44.440 based restrictions that are impacting them because of policies engaging 0:10:44.800 --> 0:10:47.480 as well as policies here in Washington, DC, and they 0:10:47.520 --> 0:10:51.160 have to navigate both of those issues you're talking about 0:10:51.360 --> 0:10:57.280 ASML video other companies that are worried about policy developments 0:10:57.679 --> 0:11:01.280 that are going to in some ways constrain and otherwise 0:11:01.320 --> 0:11:05.240 open up different opportunities for them to continue to grow. 0:11:05.720 --> 0:11:09.559 And so in Beijing, the policy restrictions are are we 0:11:09.960 --> 0:11:12.440 just in the short term able to continue to sell 0:11:12.440 --> 0:11:17.640 our products until China indigenously innovates its own competition to 0:11:17.760 --> 0:11:20.880 our products, and so you can't have confidence in the 0:11:20.920 --> 0:11:23.920 long term outlook for continued growth in the China market. 0:11:24.240 --> 0:11:28.120 And then of course in Washington, the impact of yesterday's announcements, 0:11:28.520 --> 0:11:32.240 how will that impact these companies' abilities to continue to 0:11:32.520 --> 0:11:36.960 gain global profits that they put into global innovation that 0:11:37.120 --> 0:11:40.120 are derived out of the China market. And so, yes, 0:11:40.280 --> 0:11:44.920 companies are trying to balance these issues of significant national 0:11:44.960 --> 0:11:48.680 security concerns that are coming not just out of one country, 0:11:49.000 --> 0:11:53.760 out of multiple capitals. I'm mentioning Beijing and of course Washington, 0:11:54.120 --> 0:11:56.840 but we're hearing these same concerns coming out. 0:11:56.720 --> 0:11:58.800 Of Brussels, Tokyo, elsewhere. 0:11:59.240 --> 0:12:02.480 And so companies just have to balance these issues and 0:12:02.520 --> 0:12:07.000 try to advocate for the need to continue to promote 0:12:07.080 --> 0:12:12.240 sales that aren't impacting national security in global markets so 0:12:12.280 --> 0:12:17.280 that they continue to innovate and remain global leaders like Nvidia, 0:12:17.360 --> 0:12:19.400 ASML others really are. 0:12:20.800 --> 0:12:21.040 Amy. 0:12:21.120 --> 0:12:22.360 Let's end on the data. 0:12:22.440 --> 0:12:25.000 You know, it's a critical consumer electronics market. 0:12:25.040 --> 0:12:26.400 There are hyperscalers there. 0:12:26.920 --> 0:12:30.400 GDP came in four point nine percent, just below Beijing's 0:12:30.440 --> 0:12:35.040 five percent target. Give us your Chinese economy scorecard based 0:12:35.080 --> 0:12:35.760 on that data. 0:12:37.080 --> 0:12:40.200 Well, China is, I think, in some ways relieved that 0:12:40.240 --> 0:12:44.400 they're seeing consumption resuming on the ground in China. Now 0:12:44.440 --> 0:12:48.559 this is short term and nobody is finished being worried, 0:12:49.080 --> 0:12:52.560 least of all Chinese policy makers who are going to 0:12:52.640 --> 0:12:57.720 continue with stimulus in order to get this economy restart 0:12:57.800 --> 0:13:02.600 again meet this around five growth target for this year, 0:13:02.840 --> 0:13:06.080 looking at next year being even more challenging. But maybe 0:13:06.120 --> 0:13:09.560 we're looking at December ed for what the Chinese government 0:13:09.600 --> 0:13:13.000 says about continued stimulus in twenty twenty four. But just 0:13:13.040 --> 0:13:17.280 a reminder, putting more investment into the economy just adds 0:13:17.320 --> 0:13:20.480 that adds to that debt to GDP ratio, and so 0:13:20.600 --> 0:13:24.640 it is not a long term solution. Chinese economists are 0:13:24.640 --> 0:13:28.520 saying that so are international economists that China really needs 0:13:28.520 --> 0:13:33.479 to empower its consumers to continue to spend by investing 0:13:33.800 --> 0:13:38.120 in programs that will help consumers be less worried about 0:13:38.320 --> 0:13:41.199 that outlook for the Chinese economy. That's going to be 0:13:41.280 --> 0:13:44.400 a difficult equation for China to manage. 0:13:44.880 --> 0:13:49.200 Amy Seliko Principleward Dentin's Global Advisors, thank you, of course. 0:13:49.280 --> 0:13:53.960 Denton's an Albright Stonebridge Group property, thank you very much. 0:13:54.120 --> 0:13:55.680 Coming up, we're going to have the latest now on 0:13:55.720 --> 0:13:58.720 the Israel hamass war and the deadly blast of a 0:13:58.760 --> 0:14:00.559 hospital in Gaza City last night. 0:14:00.800 --> 0:14:05.959 Karen, such complexity, such concerns, and meanwhile, here in the 0:14:06.040 --> 0:14:09.319 United States there is a second vote upon us for 0:14:10.160 --> 0:14:13.480 Republican Jim Jordan, who is looking to be the next speaker. 0:14:13.920 --> 0:14:16.040 Will keep you up to date with how that second 0:14:16.120 --> 0:14:17.800 vote doesn't EGO, it's underway. 0:14:17.920 --> 0:14:32.760 This is Blombo technology. 0:14:35.400 --> 0:14:39.359 I was deeply said in an outraged by the explosion 0:14:39.360 --> 0:14:42.520 at the hospital in Gaza yesterday, and based on what 0:14:42.560 --> 0:14:45.360 I've seen in appears as though it was done by 0:14:45.360 --> 0:14:49.240 the other team, not you. But there's a lot of 0:14:49.280 --> 0:14:51.960 people out there not sure. So we've got a lot 0:14:51.960 --> 0:14:53.480 of We're going to overcome a lot of things. 0:14:54.640 --> 0:14:57.600 US President Joe Biden there expressing his outrage at the 0:14:57.600 --> 0:15:00.040 explosion of a Gaza city hospital and Tuesday. 0:14:59.760 --> 0:15:01.280 Night they killed hundreds. 0:15:01.680 --> 0:15:03.880 Now, he was speaking during a bilateral meeting with Israedi 0:15:03.880 --> 0:15:06.880 Prime Minister Benjamin Natanyahu in Tel Aviv. We want to 0:15:06.880 --> 0:15:10.760 bring in now, Joe Matthew, of just how difficult diplomacy 0:15:10.880 --> 0:15:13.040 always is, and it's just got an. 0:15:12.920 --> 0:15:13.960 Awful lot tougher. 0:15:14.000 --> 0:15:15.520 Can you just bring us up to speed with where 0:15:15.560 --> 0:15:17.880 we are with his trip at the moment to the 0:15:17.880 --> 0:15:18.280 Middle East. 0:15:19.320 --> 0:15:20.640 Well, you just framed it perfectly. 0:15:20.680 --> 0:15:23.800 This is an incredible test for President Biden. It just 0:15:23.840 --> 0:15:26.400 got a lot harder in the last twenty four hours 0:15:26.520 --> 0:15:30.520 the news of this blast. He's really taking a decided 0:15:30.600 --> 0:15:33.440 posture on this to say that data from the US 0:15:33.480 --> 0:15:36.960 Defense Department shows that this in fact was not the 0:15:37.000 --> 0:15:41.080 responsibility of Israel, but was a missile sent from a 0:15:41.160 --> 0:15:43.760 terror group in Gaza. He said that in a couple 0:15:43.760 --> 0:15:46.840 of different occasions today. But let's remind ourselves this was 0:15:46.840 --> 0:15:49.520 supposed to be a multi day trip throughout the region. 0:15:49.920 --> 0:15:52.440 And following that blast at the hospital, a summit of 0:15:52.480 --> 0:15:55.240 Arab leaders was canceled in Jordan. The President's going to 0:15:55.240 --> 0:15:58.600 be heading back to Washington tonight, So the stakes here 0:15:58.680 --> 0:15:59.960 are very high for Joe Biden. 0:16:00.720 --> 0:16:03.560 The stakes are It was also announced one hundred million 0:16:03.600 --> 0:16:05.720 dollars in aid to both Gaza and. 0:16:05.720 --> 0:16:06.480 The West Bank. 0:16:06.960 --> 0:16:10.760 Just tell us how ultimately we're able to see aid flow. 0:16:10.800 --> 0:16:13.480 At the moment, when we're looking at a house that's 0:16:13.520 --> 0:16:16.240 going through a second vote, try and find a speaker. 0:16:17.360 --> 0:16:19.680 Well, it can't, is the fact, and that's why there's 0:16:19.960 --> 0:16:21.920 a great sense of urgency behind this vote. 0:16:21.920 --> 0:16:23.240 It just started a short time ago. 0:16:23.360 --> 0:16:25.480 Jim Jordan again is up for a second round and 0:16:25.600 --> 0:16:28.160 is not expected to win this round, and there are 0:16:28.240 --> 0:16:31.040 questions about what happens after that. The White House is 0:16:31.040 --> 0:16:35.480 putting together a massive supplemental budget request one hundred billion 0:16:35.560 --> 0:16:39.920 dollars for not only Israel, but also Ukraine, Taiwan, and 0:16:40.040 --> 0:16:43.640 border security to try to give lawmakers no opportunity to 0:16:43.720 --> 0:16:45.800 vote no, because one of these things will be, of course, 0:16:45.840 --> 0:16:48.640 if not more of them, an important element to any 0:16:48.720 --> 0:16:49.840 Democrat or Republican. 0:16:49.880 --> 0:16:51.400 But there's got to be a speaker. 0:16:51.440 --> 0:16:53.880 And at this point right now, it's unclear who will 0:16:53.880 --> 0:16:54.800 hold the gavel and when. 0:16:54.840 --> 0:16:55.560 And I'll remind you. 0:16:55.640 --> 0:16:58.560 One month from today is when the government is set 0:16:58.560 --> 0:17:01.280 to shut down. That also can not be managed unless 0:17:01.320 --> 0:17:02.960 this speaker fight is resolved. 0:17:03.320 --> 0:17:14.320 Joe Matthew, we thank you so much of Bloomberg time 0:17:14.359 --> 0:17:16.679 now for work shifting Look. It's where we take a 0:17:16.680 --> 0:17:18.880 look at the changing landscape of the labor market amid 0:17:18.880 --> 0:17:22.399 advancers and technology first up. Regulators in the European Union 0:17:22.440 --> 0:17:25.440 are moling over stricter rules to monitor generator of AI. 0:17:25.600 --> 0:17:28.639 It's a proposal seen by Bloomberg outlined a three tiered 0:17:28.640 --> 0:17:31.720 approach classifying AI models and systems and the rules that 0:17:31.760 --> 0:17:34.040 would apply Now, the EU is poised to become the 0:17:34.080 --> 0:17:38.720 first Western government to place mandatory rules on artificial intelligence. Meanwhile, 0:17:38.720 --> 0:17:41.600 AI startup Inflection AI wants to limit the role of 0:17:41.680 --> 0:17:45.160 chatbots in voting in elections. PI to the company's chatpot 0:17:45.320 --> 0:17:48.199 won't be allowed to advocate for any political candidate. The 0:17:48.240 --> 0:17:50.720 company is hoping other firms will make their chatbots to 0:17:50.840 --> 0:17:55.320 the same. Plus this, a whopping seventeen point nine billion 0:17:55.359 --> 0:17:58.400 dollars has been poured into AI startups so far this year, 0:17:58.480 --> 0:18:01.280 and according to Pitchbook data half A Bloomberg, the value 0:18:01.280 --> 0:18:04.280 of funding for AI companies clim twenty seven percent globally 0:18:04.320 --> 0:18:07.880 compared to thirty one percent dip in overall deals for startups. 0:18:07.880 --> 0:18:12.080 Set all right, this is a newsletter that the world 0:18:12.080 --> 0:18:15.919 pays attention to, celebrity bench, capitalist mark and Dreesen is 0:18:15.920 --> 0:18:20.919 issuing a new manifesto to highlight how technology can advance humanities, 0:18:21.000 --> 0:18:23.840 achievements and flaws. In a blog post that you published 0:18:23.840 --> 0:18:27.240 earlier this week, and Dreesen says, quote, the only perpetual 0:18:27.359 --> 0:18:30.960 source of growth is technology. Give us a real world 0:18:31.000 --> 0:18:34.439 problem and we can in technology that will solve it. 0:18:34.960 --> 0:18:36.760 Let's go deep on this and bring in Bloomberg News 0:18:36.880 --> 0:18:40.119 VC reporter Katie Ruth. What I just said. It's just 0:18:40.320 --> 0:18:44.160 true when in Dreason puts out one of these blog posts, 0:18:44.240 --> 0:18:48.760 it shared endlessly on social media platforms and debated. Just 0:18:48.840 --> 0:18:53.879 outline and Dresen's argument in this latest academic exercise. 0:18:54.640 --> 0:18:55.479 Sure, yeah, you're right. 0:18:55.560 --> 0:18:58.080 He's definitely good at getting attention. And he's done this 0:18:58.160 --> 0:19:00.480 several times over the years. He's done one that was 0:19:00.520 --> 0:19:03.000 called software is eating the World, he did one it's 0:19:03.000 --> 0:19:05.480 called It's time to Build, and now he's done this one. 0:19:05.600 --> 0:19:09.439 And you know, it's always a super bullish case for technology, 0:19:09.440 --> 0:19:12.399 which makes sense. He is a technology investor in it 0:19:12.480 --> 0:19:16.000 is his job to see the future and make these bets. 0:19:16.520 --> 0:19:21.159 He always includes zingers and some very controversial statements in there, 0:19:21.200 --> 0:19:23.120 which I think, of course help it get more attention. 0:19:23.240 --> 0:19:25.399 I think at the end of the day, what you 0:19:25.400 --> 0:19:28.400 should look at this is marketing. He's trying to get 0:19:28.440 --> 0:19:31.240 attention for his firm and dres and Horowitz, and you 0:19:31.440 --> 0:19:34.439 get an edge on some of these startup deals that 0:19:34.480 --> 0:19:35.560 he's trying to get access to. 0:19:36.160 --> 0:19:39.240 It's also the pushback against regulation, right, he's trying to 0:19:39.280 --> 0:19:42.760 speak to policymakers with fifty two hundred words where he 0:19:42.840 --> 0:19:47.159 says a deceleration in AI will cost lives. Do you 0:19:47.240 --> 0:19:51.200 think it will in any way stoke policymakers to pull 0:19:51.240 --> 0:19:52.720 back on the regulatory endeavors. 0:19:53.200 --> 0:19:56.520 Well, he's certainly a leading voice in the venture capital industry, 0:19:56.520 --> 0:19:58.760 and so if they're interested in hearing from the industry, 0:19:58.760 --> 0:19:59.520 he's probably one of. 0:19:59.520 --> 0:20:00.480 The people talk to. 0:20:00.680 --> 0:20:03.440 But I'm sure they would talk to an array of perspectives. 0:20:03.480 --> 0:20:06.560 I mean, he's always taken a more libertarian point of view. 0:20:06.640 --> 0:20:09.840 Not everyone in the tech industry has the same political 0:20:09.880 --> 0:20:13.000 philosophies as he does, but he's you know, he's on 0:20:13.040 --> 0:20:15.879 the board of Facebook. He's always been kind of vocal 0:20:16.000 --> 0:20:20.400 about being anti regulation, anti anyone interfering with anything that 0:20:20.440 --> 0:20:24.359 the technologist want to do. Yeah, exactly, and so you know, 0:20:24.440 --> 0:20:25.040 this is just. 0:20:25.520 --> 0:20:28.320 Part of the course from Mark and drecent Okatie. 0:20:28.320 --> 0:20:30.680 We've great to have such VC expertise in the house 0:20:30.720 --> 0:20:39.040 today we thank him. 0:20:39.240 --> 0:20:40.640 Welcome back to BlueBag Technology. 0:20:40.640 --> 0:20:42.720 I'm Caroline had in New York and right here in 0:20:42.760 --> 0:20:45.439 the Big Apple Well, all week long we're covering the 0:20:45.480 --> 0:20:48.560 technology industry because it's Tech Week. Upon us, I'm pleased 0:20:48.560 --> 0:20:50.040 to say we're now joined by one of the key 0:20:50.040 --> 0:20:52.159 founders in the area who chooses to live and operate 0:20:52.200 --> 0:20:54.760 have fintech business here in the city. Joining us is 0:20:54.800 --> 0:20:58.719 Stephanie Kirkpatrick or I'm CEO, which is all about making 0:20:58.840 --> 0:21:00.800 payments that much with the faster. 0:21:00.960 --> 0:21:02.480 It's basically building upon fed. 0:21:02.600 --> 0:21:05.280 Now, before we get into what you're building, why build 0:21:05.280 --> 0:21:07.280 it here in New York? It feels like fintech is 0:21:07.320 --> 0:21:10.080 an obvious choice when you think about the financial institutions here. 0:21:10.640 --> 0:21:13.159 I mean, I had a huge opportunity to pick up 0:21:13.200 --> 0:21:14.920 and move to New York a number of years ago 0:21:15.280 --> 0:21:18.400 to Chase my passion about the intersection of financial services 0:21:18.400 --> 0:21:21.000 in tech, and here we are as I set out 0:21:21.040 --> 0:21:23.600 to found ORM. There's no better place in the world 0:21:24.119 --> 0:21:27.320 to recruit diverse talent and to live in an ecosystem 0:21:27.359 --> 0:21:32.280 where there's grit and tenacity and frankly opportunity in particular 0:21:32.359 --> 0:21:36.160 in fintech with what we're building, and I admit every 0:21:36.160 --> 0:21:38.919 time I see that New York skyline, I think, Wow. 0:21:39.080 --> 0:21:41.359 Okay, so you talked about the opportunity in terms of 0:21:41.600 --> 0:21:44.040 who wants your products and what sort of products they 0:21:44.040 --> 0:21:46.879 want to be, because you've been at plenty of other startups. 0:21:46.880 --> 0:21:48.520 I mean I think of Lenvest, that was a great 0:21:48.560 --> 0:21:50.560 exit sold to another financial institution. 0:21:51.440 --> 0:21:53.320 What did you see that needed to be fixed and 0:21:53.400 --> 0:21:54.120 why was New York. 0:21:54.040 --> 0:21:54.679 The place to do it? 0:21:55.080 --> 0:21:56.439