Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live
Speaker 1: from coast to coast with Caroline Hide in New York
Speaker 1: and ever Low in San Francisco.
Speaker 2: This is Bloomberg Tech.
Speaker 3: Coming up, Samsung will produce AI chips for Tesla in Texas,
Speaker 3: a new multi year deal worth sixteen point five billion dollars.
Speaker 4: PA's the US and E you agree on a deal
Speaker 4: that we'll see the bloc face fifteen percent tariffs on
Speaker 4: most of its exports, including chips and cars.
Speaker 3: And what to expect from the big tech earnings coming up?
Speaker 3: With Microsoft, Meta, Apple, and Amazon all reporting this week.
Speaker 4: That is a huge market capitalization that we watch out
Speaker 4: for in terms of those megacaps coming with earnings ed, we're.
Speaker 5: On ten hooks ahead of it. So we are fading
Speaker 5: some of the.
Speaker 4: Rally that we've seen in big today, we're still clinging
Speaker 4: on to gains and now's that one hundred and a
Speaker 4: new record high. We're up a third of a percent,
Speaker 4: But those rallies.
Speaker 5: That we saw in Europe have faded completely.
Speaker 4: We're in the red as that fifteen percent tariff looks
Speaker 4: ugly on the EU side of things, but you're digging
Speaker 4: into the micro stories today.
Speaker 3: Yeah, Tesla and Samsung in this arrangement to make AI
Speaker 3: chips in Texas is driving markets. Tesla's gains have really
Speaker 3: accelerated up three point eight almost four percent overnight in career.
Speaker 2: Look at Samsung shares.
Speaker 3: It's for the AI six chip, the next generation of
Speaker 3: full self driving silicon that goes into the vehicles. Samsung
Speaker 3: already does quite a lot with Tesla on prior generations,
Speaker 3: and at the same time Tesla has some diversifying and
Speaker 3: some hedge with TSMC. But this is a big one.
Speaker 3: Elon must has been talking about it on X of course.
Speaker 5: Funny that.
Speaker 4: Well, let's get the inside track with Peter Elstrom, who
Speaker 4: joins US now for more on this. This is a
Speaker 4: vote of confidence in Samsung's chip manufacturing when it had
Speaker 4: been losing market share.
Speaker 6: Peter, Yeah, that's exactly.
Speaker 7: Samsung, of course makes a whole bunch of things, including smartphones.
Speaker 7: They've really made most of their profits, though recently, out
Speaker 7: of their semiconductor business. They're the leading maker of most
Speaker 7: memory chips out there, but they've been trying to build
Speaker 7: this foundry business so that they could compete with TSMC,
Speaker 7: compete for some of that high margin business from the
Speaker 7: likes of Nvidia and Apple, and now what they've got
Speaker 7: is really a marquee customer in Tesla where they can
Speaker 7: point to them and say, hey, Tesla is trusting us
Speaker 7: with the ability to make their high end chips, these
Speaker 7: AI six chips, as Ed was mentioning earlier, which is
Speaker 7: very important for their self driving technology, which they hope
Speaker 7: to really bring on enforce next year and the year after.
Speaker 6: So for Samsung, this is a big step forward. It
Speaker 6: is a decent amount of money.
Speaker 7: As we were talking about, it could increase their growth
Speaker 7: in the foundry business by about ten percent. But probably
Speaker 7: more importantly than that is the strategic importance of being
Speaker 7: able to say they have this big marquee customer for
Speaker 7: the foundry business.
Speaker 3: Bloomberg broke the story that it was Tesla that was
Speaker 3: this at that time unnamed marquee customer, and it was
Speaker 3: interesting because Elon Musk actually gave us a lot of
Speaker 3: detail on social sixteen point five billion dollars over multiple years.
Speaker 3: But Musk seems to be indicating it's bigger than that,
Speaker 3: and also Peter, he talks about why it's important that
Speaker 3: it's in Texas, he seems to be suggesting that his
Speaker 3: proximity to the fab means that Tesla can be involved
Speaker 3: in the engineering and the ramp, but that he himself
Speaker 3: can wander the lines himself.
Speaker 6: Right, Yeah, how.
Speaker 7: Many businesses can Elon must get involved in Now apparently
Speaker 7: he's going to do semiconductors too. Yeah, it's quite interesting
Speaker 7: that he has said. He says that this deal allows
Speaker 7: him to be able to be personally involved, intimately involved,
Speaker 7: to be able to walk the lines and help with production.
Speaker 7: I don't know how much he knows exactly about semi
Speaker 7: conductor manufacturing, but you can imagine that having such an
Speaker 7: important customer there on premises is going to put some
Speaker 7: pressure on them to be able to build out quite quickly.
Speaker 7: Now it's important to kind of step back here. Of course,
Speaker 7: the US has been trying to rebuild their semi conductor
Speaker 7: industry for a number of years. We saw the Biden
Speaker 7: administration come out with the Chips Act that offered thirty
Speaker 7: nine billion dollars in incentives. Samsung is one of the
Speaker 7: big beneficiaries here, and one of the reasons that they're
Speaker 7: expanding their capacity in Texas is specifically so that they
Speaker 7: can supply US customers they're going to skirt their way
Speaker 7: around the Trump tariffs if they're able to produce within
Speaker 7: the country, and Elon Musk will be able to go
Speaker 7: there to Texas to be able to try out some
Speaker 7: of these things and then use them in the self
Speaker 7: driving technology.
Speaker 6: So it is a step.
Speaker 7: Forward for that Chips Act and that effort to kind
Speaker 7: of rebuild the domestic industry. TSMC and Intel are both
Speaker 7: also beneficiaries of that effort.
Speaker 4: It is interesting, though, isn't it that it is overseas
Speaker 4: manufacturers building in the US that are able to make
Speaker 4: big tech win in terms of the chip supply chain.
Speaker 4: What surprised me was also how integral, of course, Samsung
Speaker 4: is once again to the COSPY. I think the costpy
Speaker 4: the South Korean Index is one of the best performers
Speaker 4: globally this year. Sk Heinex has a lot to thank
Speaker 4: for it as well, though.
Speaker 6: Right yes, Skhynix has jumped out ahead.
Speaker 7: In the memory chips that are most used for AI,
Speaker 7: these HBM memory chips. They've actually gotten quite a bit
Speaker 7: of Samsung ahead of Samsung on that front, which is
Speaker 7: a bit of a blow to Samsung, But Samsung is
Speaker 7: making some progress kind of climbing its way back trying
Speaker 7: to get authorization to be able to sell those HBM
Speaker 7: chips to in Nvidia, which is the most important partner
Speaker 7: at this point.
Speaker 6: But you've brought her a point.
Speaker 7: Yes, it's really TSMC has been leading the way in
Speaker 7: advanced chip manufacturing. It gets that high margin business from
Speaker 7: Nvidia and Apple right now and many other customers. There
Speaker 7: were many hopes within Washington that the next competitor in
Speaker 7: that foundry business would be Intel.
Speaker 6: They have not made that progress. We saw that last
Speaker 6: week in the.
Speaker 7: Earnings report in Bhutan's questions about whether maybe he's going
Speaker 7: to pursue that foundry business. But we're seeing that Samsung
Speaker 7: is emerging is probably the strongest alternative to TSMC. Everybody
Speaker 7: in the industry wants some competition in that market. They
Speaker 7: don't want to just have TSMC making the most advanced
Speaker 7: chips in the industry.
Speaker 6: They want to have some alternatives.
Speaker 7: Whether it's Samsung, whether it's Intel, there it's somebody else.
Speaker 3: Got a lot of questions about those alternatives have been
Speaker 3: in both Peter Els from Thank you very much to
Speaker 3: dive into all of this with Michael Green, chief investment
Speaker 3: strategist and portfolio manager at Simplify Asset Management, which has
Speaker 3: over eight billion dollars in assets under management. And it's interesting.
Speaker 3: I want to take advantage of the timing, Michael. Last
Speaker 3: time you were on, we were talking about Elon Musk
Speaker 3: alienating himself from.
Speaker 2: Both political parties.
Speaker 3: If you remember, now, this is an example of a
Speaker 3: leading American company, an individual, and Elon Musk doing a big,
Speaker 3: big deal over multiple years with a foreign technology company
Speaker 3: to onshore industry in this country. What do you make
Speaker 3: of that in the economic opportunity it presents.
Speaker 8: Well, I think this is actually the tension that exists
Speaker 8: right on shoring into America, particularly bringing back high value
Speaker 8: added tech tech manufacturing like chips that's not going to
Speaker 8: overly stress the labor force that has relatively low employment levels,
Speaker 8: but a large fiscal impact and a large impact. This
Speaker 8: is fantastic and it's exactly what we would hope to
Speaker 8: see under a Trump administration, raising the costs of companies
Speaker 8: doing business abroad and shipping stuff to the United States.
Speaker 2: How successful it's going to be.
Speaker 8: As was alluded to earlier, these are two companies that
Speaker 8: are both kind of struggling in their respective fields that
Speaker 8: have announced a major investment. Is it enough to bring
Speaker 8: both companies significantly higher? Clearly the stock market thinks that
Speaker 8: it's helpful. I don't see how it's not, but it
Speaker 8: still is something that remains to be seen in terms
Speaker 8: of its long term impact of.
Speaker 3: The contract manufacturers. We mentioned Samsung, TSMC, and Intel.
Speaker 2: Which do you like and why? Well?
Speaker 8: The quick answer is is that I'm a strategist. I
Speaker 8: don't spend as much time on the individual securities. It's
Speaker 8: very hard to argue with TSMC's overall technical lead in
Speaker 8: the space. They have managed to build an extraordinary business
Speaker 8: that has slowly taken out competitors like Intel and for
Speaker 8: that matter, Samsung. You know, they're all extremely capable. This
Speaker 8: is an industry with tremendous growth, But if you're putting
Speaker 8: bets on change, you have to look at companies like
Speaker 8: Samsung et cetera to undercut or Tesla. The whole story,
Speaker 8: effectively is the increased competition is coming for both TSMC
Speaker 8: and in video. I think that's probably the biggest takeaway
Speaker 8: on this.
Speaker 5: Give us the.
Speaker 4: Broader context here then, as a strategist as well, Michael
Speaker 4: as to how over exposed investors are written large on
Speaker 4: the semiconductor space, semiconductor equipment. More broadly, I'm looking at
Speaker 4: how Goldman at the moment is saying the US prime
Speaker 4: book is really heavily weighted and overexposed to that, and
Speaker 4: we've seen judge funds of particular dial back ahead of earnings.
Speaker 8: Yeah, you definitely have seen that. And one of the
Speaker 8: factors that we've seen in this rally as it has
Speaker 8: extended off of the April thows, has been extraordinary retail
Speaker 8: participation and dramatic increase in the quantity of margin that
Speaker 8: is being utilized, and equally important, a dramatic decline in
Speaker 8: the quantity of short end That's really what's hitting the
Speaker 8: hedge fund positioning because they tend to have that bias
Speaker 8: of being long the more quality oriented name short the
Speaker 8: shorted names. That's causing distress in the hedge fund space.
Speaker 8: That I think it's causing them to take all exposures
Speaker 8: down as compared to isolating to particular risk for those
Speaker 8: leading companies. I think most people anticipate that this earnings
Speaker 8: report this earning season is going to be relatively favorable,
Speaker 8: if for no other reason than the stocks are near
Speaker 8: all time highs. That lowers the incentive to introduce special
Speaker 8: charges or anything else that you would classify. So I
Speaker 8: think most people are actually expecting a pretty good earning season.
Speaker 8: It's just market conditions are extraordinarily difficult for hedge funds
Speaker 8: right now.
Speaker 4: They've got to be pretty perfect these earnings for us
Speaker 4: to live up to the hype in a way, Michael.
Speaker 4: But what's also so clear is that hedge funds have
Speaker 4: been under exposed to software services.
Speaker 5: Does that change in the nattern.
Speaker 8: Well, I think ultimately that hedge funds are going to
Speaker 8: follow whatever is working. So if it can take we
Speaker 8: continue to see under performance in the high quality hardware space,
Speaker 8: or the impressive performance that we're seeing from cyclicals right
Speaker 8: now versus defensives, you will see hedge funds ultimately rotate
Speaker 8: because they are more interested in making money than they
Speaker 8: are in being right.
Speaker 4: Oh, there's always the quandary. Michael Green from Simplify Asset
Speaker 4: Management putting it straight on where the focus has to
Speaker 4: live for hedge funds right now? Coming up, We thank
Speaker 4: him and we move over to Victoria espanel or the
Speaker 4: Business Software Alliance, just talking about how software has been
Speaker 4: a bit unloved.
Speaker 2: But where are we.
Speaker 4: Going to be seeing the differences in regulations across the globe.
Speaker 4: How is that impacting software companies and the approach to AI?
Speaker 5: This is Bloomberg tech.
Speaker 6: So I just want to go grow you.
Speaker 7: I think it's I think it's great that we made
Speaker 7: a deal today instead of playing games.
Speaker 2: And maybe not making a deal at all.
Speaker 5: I think it's I'm going to.
Speaker 9: Let you say, but I think it's the biggest deal
Speaker 9: ever made.
Speaker 3: I was President Trump there speaking in Scotland. Many of
Speaker 3: the details from the US EU trade deal are still
Speaker 3: to be announced. The semiconductor industry, though, rallying on the
Speaker 3: news that it will not face a separate tariff rate. Instead,
Speaker 3: it will be included in the fifteen percent rate applied
Speaker 3: to all EU goods exported to the United States. Want
Speaker 3: to get out to Washington, d C. And Blumbo's klie
Speaker 3: lyones give us the details of what we do know
Speaker 3: what was agreed, and the President saying there it's the
Speaker 3: best deal he's ever done.
Speaker 10: Yeah, the biggest deal ever made, to use the president's words,
Speaker 10: ed I'll leave that up to determination as to whether
Speaker 10: or not that is actually true. But of course this
Speaker 10: is a big win for Europe, which was facing the
Speaker 10: threat if a thirty percent tariff come Friday August first,
Speaker 10: if this deal was not struck, fifteen percent obviously a
Speaker 10: much lower rate than that, And key here is really
Speaker 10: the fact that they got that fifteen percent rate to
Speaker 10: apply to sectors in particular, not just automobiles, but as
Speaker 10: you mentioned, also semiconductors and pharmaceutical tariffs, which of course
Speaker 10: there is a Section two thirty two investigation underway into
Speaker 10: both of those sectors already, in which the end result
Speaker 10: could be that other non EU countries face a higher
Speaker 10: teriff rate than that on those specific materials. Europe was
Speaker 10: able to secure a fifteen percent rate that will be
Speaker 10: applicable effectively across the board, but the exception still of
Speaker 10: steel and aluminum, which of course faces a fifty percent tariff.
Speaker 10: Key to doing so, we understand, though no details are
Speaker 10: yet on paper, we haven't actually gotten a formal readout
Speaker 10: or or full list of what this deal actually will
Speaker 10: entail beyond what we've been told and what officials familiar
Speaker 10: have told Bloomberg. But key, according to sources familiar with
Speaker 10: the matter, was the fact that Europe has also agreed
Speaker 10: to make more investment into the United States as part
Speaker 10: of this deal including six hundred billion dollars investments into
Speaker 10: the US and seven hundred and fifty billion dollars of
Speaker 10: purchases of a American energy over the course of the
Speaker 10: next several years, in addition to what President Trump described
Speaker 10: as vast purchases of US military equipment. So all of
Speaker 10: that is what we understand this deal to essentially look
Speaker 10: like in the broadest of terms, but we're still waiting
Speaker 10: for that granular detail.
Speaker 4: And of course we assume and understand that there's a
Speaker 4: carve out for chip equipment in particular where they face
Speaker 4: a zero taris and on the asml is on the
Speaker 4: highest side, Kanie. What's really interesting is pushing us forward,
Speaker 4: is what this fifteen percent number means for the China
Speaker 4: negotiations that's actually happening in Sweden.
Speaker 10: We understand, Yeah, they're underway in Sweden right now. It
Speaker 10: will be two days of talks spearheaded by Chinese Premier
Speaker 10: to Le fun as well as the Treasury Secretary Scott Besson.
Speaker 10: They are underway. China, of course, already is facing a
Speaker 10: higher tariff rate than most Twenty percent is the level
Speaker 10: specifically applied in retaliation for the trade of fent and
Speaker 10: all that is going to be something specifically that we
Speaker 10: understand is one of the focuses of the US at
Speaker 10: these talks. They're going to be talking about whether or
Speaker 10: not China is actually able to tamp down on the
Speaker 10: flow of fentanel out of the country, though China obviously
Speaker 10: disputes that, saying it's a US domestic problem. But in
Speaker 10: addition to trying to get that terifright lower, which there
Speaker 10: may or may not be progress on the real crux
Speaker 10: of these talks, as has been for the previous iterations
Speaker 10: of this, as we've seen multiple rounds in the last
Speaker 10: several months, is going to be around export controls. On
Speaker 10: the US side, of course, that includes export controls of
Speaker 10: critical technology including semiconductor and equipment for the manufacturing that
Speaker 10: we've already seen some easing of that with the allowance
Speaker 10: of H twenty chips from Nvidia to start flowing back
Speaker 10: into China for export. But on the Chinese side, it's
Speaker 10: really about rare earth and critical minerals that of course
Speaker 10: they have a choke hold on at this time, and
Speaker 10: it was been the easing of the flow of that
Speaker 10: allowing American importers to get the licenses to actually bring
Speaker 10: those critical minerals in that has been critical for advancing
Speaker 10: this at least deston shall we say forward, which is
Speaker 10: also going to be one of the key pushes for
Speaker 10: these talks. The Treasury Secretary Scott Best and indicating one
Speaker 10: of the primary outcomes they're looking for here is an
Speaker 10: extension of the current troops that is in place beyond
Speaker 10: the deadline that currently stands of August.
Speaker 4: Twelfth, been important for in videos h twenties as well
Speaker 4: to get back into China. Bloomberg's Kylee lines brilliant wrap
Speaker 4: up of all things trade.
Speaker 5: But let's get.
Speaker 4: More on how these deals and indeed developing global regulations
Speaker 4: for artificial intelligence really impacting developers. Victoria Espinel's with our
Speaker 4: CEO the Business Software Alliance and the context here Victoria
Speaker 4: is one of the AI Action Plan announce why the
Speaker 4: US government really to take on China and the AI
Speaker 4: race that the US wants to win from a regulatory perspective.
Speaker 4: How do you think the US is winning.
Speaker 5: Or not.
Speaker 2: So?
Speaker 11: I think there's a lot of good that's in the
Speaker 11: AI Action Plan, but here is one part. You know,
Speaker 11: there's a lot of conversation about who's going to win
Speaker 11: the AI race, and a lot of that focuses on
Speaker 11: who's going to be at the cutting edge of innovation,
Speaker 11: and that is obviously important. But a conversation that is
Speaker 11: just starting to happen that I think is will potentially
Speaker 11: have an even bigger impact is who is going to
Speaker 11: win the race on AI adoption. By that, I mean
Speaker 11: which are the countries that are going to figure out
Speaker 11: how to use AI best, Because it is those countries
Speaker 11: that are going to see the biggest economic benefit from AI.
Speaker 11: That is the race, and that is that is largely
Speaker 11: up for grabs right now. I think the United States
Speaker 11: has an advantage there, and I think the AI Action
Speaker 11: Plan has a number of aspects that are focused on adoption,
Speaker 11: But that race is up for grabs, and I think
Speaker 11: that is going to be a big indicator of where
Speaker 11: we see the biggest economic benefit over the next decade.
Speaker 4: So we're not focused, therefore, from your perspective on AI adoption,
Speaker 4: on training talent to ensure that in enterprise we're actually
Speaker 4: getting banged from a bot productivity actually goes up into
Speaker 4: the right.
Speaker 11: So there are a few aspects that I think are
Speaker 11: critical to AI adoption, and actually at BSA, we released
Speaker 11: an agenda just before the AI Action Plan came out
Speaker 11: earlier last week. The focus is on three aspects. One
Speaker 11: is talent and workforce, and that is critical. I think
Speaker 11: there's no aspect more essential. The second is infrastructure and data,
Speaker 11: and the third is the governance framework and making sure
Speaker 11: that we get that right. And those three elements are
Speaker 11: things that the United States, but governments around the world
Speaker 11: need to be figuring out right now if they are
Speaker 11: going to win the race on AI adoption Victoria.
Speaker 3: Last week on the program, Michael Kratzios, who leads to
Speaker 3: the Office of Science and Tech at the White House,
Speaker 3: came on and he talked about packages that he sees
Speaker 3: America being a net exporter of everything in the stack,
Speaker 3: from hardware through to the models themselves. You were talking
Speaker 3: about adoption a moment ago. How does America is an
Speaker 3: exporter of AI fit into that.
Speaker 11: I think that's a critical piece. So a lot of
Speaker 11: the innovation has happening here in the United States for
Speaker 11: governments to be able to adopt AI, to have their
Speaker 11: private sector using AI in a way that they get
Speaker 11: the most economic benefit. A big piece of that is
Speaker 11: going to be AI exportation from the United States and
Speaker 11: There was conversation last week about the data centers and
Speaker 11: the chips, but obviously an important element of that is
Speaker 11: the software and the cloud services.
Speaker 2: Because it is literally.
Speaker 11: Not possible to adopt AI unless you have cutting edge
Speaker 11: cloud services, unless you have cutting edge software, and a
Speaker 11: lot of that's going to be coming from right here
Speaker 11: in the United States.
Speaker 3: There was also a discussion about copyright, and the President
Speaker 3: talked about.
Speaker 2: This during his address.
Speaker 3: Given that you kind of represent more the software side
Speaker 3: of the stack, how did you think about that, you know, Karen,
Speaker 3: and I increasingly comes up in the show. Is a
Speaker 3: point of priority, particularly for the frontier model or just
Speaker 3: model makers generally.
Speaker 5: It's a big issue.
Speaker 11: It's an issue here in the United States and in
Speaker 11: other markets as well. So, as you know, in the
Speaker 11: white Hat and the AI action plan that was released
Speaker 11: last week, there's not a lot of discussion of the
Speaker 11: copyright issue specifically, but the President and his public remarks
Speaker 11: spoke to it quite forcefully in terms of the importance
Speaker 11: of training data and for the AI builders to be
Speaker 11: able to get that training data and use it with
Speaker 11: relative e So he was very very clear on that aspect,
Speaker 11: and that's something that we are anticipating seeing the White
Speaker 11: House say more about and the next year or so.
Speaker 11: But the President was very clear in terms of his
Speaker 11: opinion on the importance of training data and how important
Speaker 11: that is for the United States to stay ahead of
Speaker 11: the AI race with respect to China.
Speaker 4: Briefly, Victoria, today's day, we focus on the EU. It's
Speaker 4: smarting today in terms of competitiveness. They're worried about fifteen
Speaker 4: percent tariff. How much should they be worried about their
Speaker 4: own EU AI act on competitiveness.
Speaker 11: So again, I think the EU has huge potential opportunity
Speaker 11: to benefit from AI if it starts focusing on adoption,
Speaker 11: and part of that is addressing some of the digital
Speaker 11: sovereignty barriers that.
Speaker 5: The EU has put up. There are aspects of the
Speaker 5: trade dealers.
Speaker 11: You know, the details of the trade deal are not
Speaker 11: yet fully public, but Ambassador Greer was talking just this
Speaker 11: morning about looking at things like mutual recognition of cybersecurity,
Speaker 11: of streamlining regulations, of steps that Europe can take, and
Speaker 11: those steps are important not just for US software providers
Speaker 11: but for the EU if they are going to be
Speaker 11: able to adopt and use AI effectively.
Speaker 3: Victoria Espinew, CEO of the Business Software Alliance. Thank you
Speaker 3: very much. We have some breaking news crossing the Bloomberg terminal.
Speaker 3: FIGMA is boosting the pricing of its IPO to thirty
Speaker 3: to thirty two dollars a share, previously seen the IPO
Speaker 3: at twenty five to twenty eight dollars per share. Remember,
Speaker 3: Figma is trying to raise just above a billion dollars
Speaker 3: and they had this kind of auction style process where
Speaker 3: they went to prospective investors and said how many shares
Speaker 3: do you want and how would you price them? The
Speaker 3: logic being carro that they want to try and get
Speaker 3: near to that twenty billion dollar valuation that Adobe had
Speaker 3: valued becoming out when it had tried to buy it. Now,
Speaker 3: the IPO, which we think will price on Wednesday to
Speaker 3: recap pricing between thirty and thirty two dollars a share.
Speaker 2: We'll keep a close on it throughout the week.
Speaker 4: And that previously mark to range added at a market
Speaker 4: cap of about sixteen billion at the top end, So
Speaker 4: we do the math.
Speaker 5: Coming up AI competition.
Speaker 4: Sees the rapid releases of free open source models.
Speaker 5: More on that next. This is Bloomberg Tech.
Speaker 4: It is time now for talking tech and first up
Speaker 4: open AI rival Jupu has released.
Speaker 5: Its biggest open source models to.
Speaker 4: Date, and the Chinese startup unveiled hybrid reasoning models GLM
Speaker 4: four point five GLM four point five air. It's ready
Speaker 4: to sto update to the company's of flagship models as
Speaker 4: it joins a growing number of Chinese firms ramping up
Speaker 4: free AI offerings.
Speaker 5: Plus PayPal well it's.
Speaker 4: Set to allow businesses to accept crypto at checkout. Over
Speaker 4: the coming weeks, company will introduce more than one hundred
Speaker 4: cryptocurrencies like Bitcoin and ethereum as payment options for merchants.
Speaker 4: According to PayPal, the pay with crypto transactions settle instantly
Speaker 4: will initially cost zero point ninety nine.
Speaker 5: Percent per transaction.
Speaker 4: And TDK, one of the biggest suppliers of iPhone batteries,
Speaker 4: says it is closely monitoring the tariff impact globally due
Speaker 4: to their worldwide operations and the importance of relative tariffs
Speaker 4: compared to other countries, and the tdkco spoke exclusively to
Speaker 4: Bloomberg about how the company is seeing the trade deal between.
Speaker 5: US and Japan.
Speaker 7: Who need to keep money done in the other cases,
Speaker 7: not only you know needed to here in Japan, but
Speaker 7: also the other countries.
Speaker 9: I hope that the impact right will be is going
Speaker 9: to be minimized, but it's actually out of the contour.
Speaker 3: The TDK CEO then are coming up. Tech IPOs could
Speaker 3: be making a comeback. We speak with mattwick Eler of
Speaker 3: Wellington Management on the landscape for going public conversation that
Speaker 3: you do not want to miss.
Speaker 2: That's right next, this is Bloomberg Tech.
Speaker 5: Welcome back to Bloomberg Tech.
Speaker 4: Quick checking on these markets that are still at record
Speaker 4: highs when you think about the one hundred, but we
Speaker 4: are fading this rally a little bit up three tens percent.
Speaker 5: We've got eleven trillion.
Speaker 4: Dollars worth of market capitalizations on.
Speaker 5: Deck this week in terms of earnings. We've also got microdata.
Speaker 5: Not to mention trade when the August.
Speaker 4: First end of this week is that so called deadline
Speaker 4: for the tariffs and we get in clarity on tariffs
Speaker 4: with the EU fifteen percent. Germany it's smarting, it's feeling
Speaker 4: that's anti competitive to some of its key industries. We're
Speaker 4: off by a quarter of a percent, but dig into
Speaker 4: some of the details and the individual movers. I want
Speaker 4: to shine a light that the market capitalization in video
Speaker 4: is once again climbing above that four trillion dollar level,
Speaker 4: and it was a key contributed to the upside of
Speaker 4: these benchmarks. Test of two in terms of points up
Speaker 4: three point six percent, sixteen and a half billion dollar
Speaker 4: deal to make chips via Samsung in Texas. The AI
Speaker 4: six chip is on deck, and that is both embolding
Speaker 4: in Tesla investors as well as Samsung today. But ASML
Speaker 4: up two and a half percent key semiconductor equipment maker,
Speaker 4: there's a carve out zero percent tariffs for these sorts
Speaker 4: of parts of the chip sector, and we also get
Speaker 4: clarity that look, semiconductors will fare that fifteen percent tara
Speaker 4: for the time being.
Speaker 3: Ed on a Monday morning, sometimes you just got to
Speaker 3: look at the calendar and just say, all right, what
Speaker 3: am I in for this week? We'll investors are bracing
Speaker 3: for a busy week of tech earnings, with Microsoft, Meta, Apple,
Speaker 3: and Amazon all reporting in a forty eight hour twenty
Speaker 3: four hour period.
Speaker 2: Bloombos, Carmen Rianky's with us and Carmen.
Speaker 3: I have to congratulate you as well because one of
Speaker 3: the best headlines I've seen on the Bloomberg terminal s
Speaker 3: and P five hundred rally faces eleven trillion dollar gauntlet
Speaker 3: of big tech earnings. The headline tells us the story,
Speaker 3: but we're braced for a very, very concentrated and busy period.
Speaker 12: Yeah, it's true. So we have Wednesday and Thursday or
Speaker 12: the big days this week, and honestly, we're going to
Speaker 12: see a little bit of the bifurcation I think that
Speaker 12: we've seen in the meg seven this year really play
Speaker 12: out this week. So on Wednesday, we have Microsoft and Meta,
Speaker 12: which have been two of the biggest point leaders on
Speaker 12: the SMP and really driven the rally, especially from sort
Speaker 12: of that April traff that we saw.
Speaker 2: Those are going to report.
Speaker 12: On Wednesday, And then on Thursday we have Apple and Amazon,
Speaker 12: and these two companies have been under a little bit
Speaker 12: more scrutiny. Investors aren't quite as sure. Amazon I think
Speaker 12: is about flat on the year, while Apple stock has
Speaker 12: rallied a lot from April. It's down about fifteen percent
Speaker 12: year to date. So people will really be watching to see,
Speaker 12: especially what they say about AI, what their plan is
Speaker 12: for using artificial intelligence going forward, and also what the
Speaker 12: impact is with China. They are the company that has
Speaker 12: the most exposure, especially out of the Magnificent seven so can.
Speaker 4: You common detail a little bit of how investors are
Speaker 4: going into this week. We know that hedge funds have
Speaker 4: actually been dialing back some of their exposure to some
Speaker 4: of the big technas because they have been such windows
Speaker 4: and because valuations are so high.
Speaker 5: Have we seen a little bit of more quotient coming
Speaker 5: into this I think so.
Speaker 12: I mean, the bar is set so incredibly high, and
Speaker 12: something that's interesting is that Earning's expectations have actually come
Speaker 12: in a little bit for this group of companies from
Speaker 12: the last report. I think they're expected to deliver Earning's
Speaker 12: growth of about sixteen percent quarter or corder down from
Speaker 12: nineteen percent. There is a little bit of a lower
Speaker 12: bar in terms of like clearing it, but that makes
Speaker 12: it all the more important that these companies do beat
Speaker 12: in rais, especially to extend the rally in their stocks.
Speaker 12: They really have to prove that they can deliver and
Speaker 12: that their valuations are worth paying for. As you said,
Speaker 12: they're very stretched. Some of these companies are at or
Speaker 12: near all time highs. But we also have a second
Speaker 12: group of companies that are not. Like I just said, Apple,
Speaker 12: you know, is still fifteen percent office all time high.
Speaker 12: Amazon is off its record high. Those companies also though,
Speaker 12: have to deliver and they could be really important to
Speaker 12: extending the rally in this S and P. You know,
Speaker 12: Apple is one of the biggest companies in the index,
Speaker 12: and so if it you know, think about where we
Speaker 12: could be if it were to pick back up and
Speaker 12: sort of see a reinvigoration in its stock. So people
Speaker 12: are definitely really watching the earnings this week, and I
Speaker 12: think just there is a very high bar as always
Speaker 12: for these companies.
Speaker 3: Common just give me a little bit more on those
Speaker 3: latter points. There's two charts in the story about the
Speaker 3: points contraby of the key names to the upside and
Speaker 3: the downside, which I think is hat a beautiful illustration
Speaker 3: of the story, but also profit estimates mag seven stripped
Speaker 3: out from the S and P five hundred. That just
Speaker 3: sets a really high bar, Like, what if it all
Speaker 3: goes wrong for Microsoft later in the week, then at
Speaker 3: the index level, we're going to have some I don't know,
Speaker 3: let's call it turmoil.
Speaker 12: Yeah, definitely. I mean, we know that these companies are
Speaker 12: the heaviest weighted, they are the biggest point gainers. So
Speaker 12: Microsoft and Meta I think are two in three, in
Speaker 12: Vidia being number one so of course there could be
Speaker 12: huge hamifigations if these companies don't deliver. We've also seen
Speaker 12: from last week with Alphabet and Tesla that companies that
Speaker 12: do beate and raise are getting rewarded. They're seeing their
Speaker 12: shares go up. Well, companies that don't are getting punished
Speaker 12: by investors, they're you know, selling off. So it's a
Speaker 12: super important going forward and it'll be really interesting to
Speaker 12: see how it plays out.
Speaker 4: Come and Ranicky, we thank you so much a week
Speaker 4: to brace ourselves for Let's just stick with the public market.
Speaker 4: So I talk about a potential newcomer. All ours are
Speaker 4: on Figma going public this week. We're now seeing it's
Speaker 4: IPO pricing between thirty to thirty two dollars a share,
Speaker 4: increasing the size of its offering to about one point
Speaker 4: two billion and a fully diluted value of as much
Speaker 4: as roughly eighteen billion dollars.
Speaker 5: So I tech IPO is coming back. Let's discuss it.
Speaker 4: The Matt we've had it who leads late stage growth
Speaker 4: at Wellington Management, which's got a cool one point three
Speaker 4: trillion dollars in assets under management. Part of that is
Speaker 4: private and that is under your remitt Are we going
Speaker 4: to see the windows crack open broader because you sat
Speaker 4: here in August at twenty twenty four and we were
Speaker 4: hoping the same thing.
Speaker 13: We were hoping that and I think where we sit
Speaker 13: today is the VC backed IPOs are coming and you
Speaker 13: see it in FIGMA, and I think it's because we
Speaker 13: really had three conditions met in the past year. The
Speaker 13: first one was we had stability and interest rates that
Speaker 13: kind of started at the end of last year when
Speaker 13: the FED said that they're not going to raise anymore,
Speaker 13: started to cut and now forecasting to cut some more.
Speaker 13: So first thing was rate stability. I think the second
Speaker 13: thing that we got was we had a public market
Speaker 13: that is relatively stable and at records, yeah all at records,
Speaker 13: and with a VIX that's at twelvemonth low almost so
Speaker 13: stability in the public markets despite the bump in April.
Speaker 13: And I think the third piece that we had was
Speaker 13: we had companies actually go out and go out successfully.
Speaker 13: We had Circle, we had Core Weave, both those are
Speaker 13: up big. And we also had smaller companies companies like
Speaker 13: e Toro and Almada Health that performed very well in
Speaker 13: the public markets. And so those three conditions I think
Speaker 13: set up for a really exciting backout of this year.
Speaker 4: A lot of those had flavors of regulatory tailwinds. When
Speaker 4: I think a crypto or the AI trade that just
Speaker 4: keeps on being a winning formula. Do you need those
Speaker 4: within the portfolio companies to go public or do you
Speaker 4: just need to be profitable revenue generated.
Speaker 13: I think you need to benefit from some of those
Speaker 13: trends that you mentioned before. I mean, I'd coined to
Speaker 13: a Figma, which, as you just discussed, raised its range.
Speaker 13: It's not a pure AI play by any means, but
Speaker 13: does will leverage AI in its capabilities, and I think
Speaker 13: that that helps promote and will help pricing of these
Speaker 13: companies as they go out.
Speaker 3: It's really great to have you back on the program.
Speaker 3: We were just reflecting on the mechanism that Figma's using.
Speaker 3: We're calling it an auction like mechanism where they go
Speaker 3: to prospective investors and they say, well, how many shares
Speaker 3: do you want to buy and what price would you set?
Speaker 3: Which I'm not as familiar with. But if you are
Speaker 3: like a late stage growth investor, right, you're almost like
Speaker 3: an ancho investor going into some of these companies pre ipo.
Speaker 2: How do you respond to the auction, so to speak.
Speaker 13: Well, I think you have to respond to where the
Speaker 13: market is setting the price. And I think that in
Speaker 13: today's environment, with as we discussed, the market backdrop that
Speaker 13: is kind of at all time highs, the response that
Speaker 13: the collective group will make, I think is such that
Speaker 13: it will continue to raise pricing expectations for high profile
Speaker 13: companies that are benefiting from AI to some degree, like Figma.
Speaker 3: I called you an almost like anchor investor. When Wellington's
Speaker 3: name comes up in my world, it's kind of like
Speaker 3: that late stage that's pre IPO.
Speaker 2: Is that your strategy, Matt, that's right.
Speaker 13: Let's find the next generation of great public companies and
Speaker 13: invest in them while they're private. Because these companies twenty
Speaker 13: or thirty years ago, companies like Figma would have been public.
Speaker 13: They would have gone public at a billion dollars in
Speaker 13: market cap and grown to the eighteen billion that they're
Speaker 13: now raising their expected market cap to and done that
Speaker 13: in the public markets, not in the private markets. But
Speaker 13: if you look at how the market's change, the market
Speaker 13: has changed such that these companies are staying private longer,
Speaker 13: not foregoing an IPO, just delaying the IPO. And that's
Speaker 13: the role that we can play is to help those
Speaker 13: companies go from great private companies.
Speaker 4: To great public I mean, Klana, we all still wait
Speaker 4: and we watch, and that's in your portfolio business. But
Speaker 4: what I'm really interested is as a late.
Speaker 5: Stage investor, what are the metrics now?
Speaker 4: Because these companies fueled by AI are growing at such
Speaker 4: a rapid rate that suddenly they're already one hundred million
Speaker 4: ARR generating.
Speaker 5: And but if you call it is what meets your criteria?
Speaker 13: I think it's a great question and something we talk
Speaker 13: about a lot, because, as you point out, AI is
Speaker 13: just fueling so much revenue growth at unprecedented pace. Do
Speaker 13: you think about a company in the model space like Anthropic,
Speaker 13: They're rumored to have gone from a billion of ARR
Speaker 13: to four billion of ARR.
Speaker 2: In six months, so four.
Speaker 13: Exiting their business at scale?
Speaker 2: So what do we look for?
Speaker 13: We are really focused on companies in the AI space
Speaker 13: that we think can be both durable and defensible. So
Speaker 13: durable meaning can these companies be ongoing businesses not in
Speaker 13: six or twelve months from now, but in five.
Speaker 2: Or six or ten years from now.
Speaker 13: And then defensible can they build on top of something
Speaker 13: that is not easily copyable.
Speaker 4: And then I think of desiq, glean Vanta, some of
Speaker 4: the rounds you have recently led a lot of us
Speaker 4: in the enterprise. Is that really the sweet spot at
Speaker 4: the moment, how we bring generative AI productivity into enterprise
Speaker 4: rather than consumer For.
Speaker 13: You, I think that is a really key observation, which
Speaker 13: which is how does the enterprise software stack benefit from
Speaker 13: AI and really leverage AI?
Speaker 3: That was Hyler of Wellington Management. It's really good to
Speaker 3: have you back on Bloomberg Tech. Really appreciate it. Now
Speaker 3: coming up on the program, we're going to hear from
Speaker 3: Ali Barba, Cloud founder Wang Jian as the company navigates
Speaker 3: a global.
Speaker 2: AI talent war. You want to miss that one. This
Speaker 2: is Bloomberg Tech.
Speaker 11: Now.
Speaker 4: And over the weekend, did you see it, China hosting
Speaker 4: the World Heyhi conference in Shanghai. We've got to show
Speaker 4: our audience robotics front and center. Some of them boxing
Speaker 4: like we see here, some of them pretty messily dispensing drinks.
Speaker 5: They are even playing the piano.
Speaker 4: But like you're the person sitting down there with some
Speaker 4: of the leading robotics and humanoid make us here in
Speaker 4: the US. And it's interesting that in the story, really
Speaker 4: are particulating. The US isn't there with a cost effective competitor.
Speaker 3: Right now, but with this event in China, right there's
Speaker 3: the bit that's for show. It's just like CS or
Speaker 3: GtC where you put all of this cool tech in
Speaker 3: one place.
Speaker 2: But the forecasts are.
Speaker 3: That this is going to be an industry in the
Speaker 3: trillions of dollars by twenty fifty, twenty thirty whatever.
Speaker 2: The skepticism in.
Speaker 3: The story, which I really appreciate, is like how much
Speaker 3: is this is translatable to the real world. But China,
Speaker 3: as we keep hearing from Jensen Wang and everyone else,
Speaker 3: has has leading researchers in the field of AI and
Speaker 3: an amazing supply chain for robotics because they can control
Speaker 3: it domestically.
Speaker 2: That seems to be a big theme it is.
Speaker 4: I'm showing we didn't get too many backflipping dogs in
Speaker 4: that VEO for you and some of those pictures, but
Speaker 4: apparently they were there.
Speaker 2: Yeah, the robots are coming.
Speaker 3: The battle for AI talent is creating huge pay packages
Speaker 3: as Silicon Valley and Beijing battle for AI dominance. Bloomberg's
Speaker 3: Annimal Drulers spoke exclusively with Ali Barba Cloud founder Yang
Speaker 3: Jian on the global AI talent war.
Speaker 9: I don't think it's it's the let's see, it's a
Speaker 9: typical way of doing seeing it, Okay.
Speaker 6: I would say that.
Speaker 2: The reason very simple.
Speaker 9: You know, example, when I when I study, uh, the
Speaker 9: the Alibaba cloud. You know, the first thing I did
Speaker 9: that was in the Tucson eight. The first I did
Speaker 9: to via the city media and to try to get tenant. Okay,
Speaker 9: mm and uh and after talking to all the people
Speaker 9: and you realize, actually we don't have much of talent
Speaker 9: there because.
Speaker 2: It's new okay.
Speaker 9: So and also with some of the talents it's just
Speaker 9: too expensive okay and uh to it film basically means okay, uh,
Speaker 9: you don't know whether the cob bas is there. Why
Speaker 9: need to hide? Why when need to hide these people?
Speaker 9: So it's really about the innovation. So when you're in
Speaker 9: the early stage of innovation, I don't seek the talent
Speaker 9: is a problem because you know they have the only
Speaker 9: thing you need to do is to get the right person,
Speaker 9: not really the expensive person. Because if a new business,
Speaker 9: if it's true innovation, that basically means talent, nobody care
Speaker 9: about them. Okay, lot they're working on that. So for
Speaker 9: the today, what happened for the matter is because they
Speaker 9: are very much focused on the existing success of the
Speaker 9: business and existing its average on technology.
Speaker 2: That's the that's that's that's that's.
Speaker 6: My real Okay.
Speaker 9: So I think we have a tremendous opportunity to look
Speaker 9: at technology nobody knows today and these talent.
Speaker 2: These are talent.
Speaker 6: But but these are.
Speaker 9: I can't say it's cheap, but but it's you. It's
Speaker 9: available for you.
Speaker 6: Okay.
Speaker 9: So that's really about the vision. You know, where you
Speaker 9: want to, where you want to go, and there's a
Speaker 9: lot of similar things you know, happened during the last
Speaker 9: twenty years. Also, whenever everybody knows that these are talent
Speaker 9: and it's better for you not to get in and listen,
Speaker 9: that's not you, that's that's my That's much like personally
Speaker 9: that I hide assulting now he had he's the leader
Speaker 9: for the Queen. Okay, you probably met him, you know
Speaker 9: when you're in Hantle. You know, I personally interview him,
Speaker 9: you know, fifteen years ago.
Speaker 2: Have we got talent?
Speaker 6: Now he's leading the Queen.
Speaker 13: Yeah.
Speaker 2: So that that's so.
Speaker 10: There's not really there's not really any justification that it
Speaker 10: sounds like you think for for such.
Speaker 9: That's not you know, what the mad you know, I'm
Speaker 9: sorry that what what the what happened in Silicon Valley
Speaker 9: is not the.
Speaker 6: Winning formula. That's what I that's what I believe, you know.
Speaker 4: Yeah, Ani a Bubba Cloud founder, Wang Jian there speaking
Speaker 4: with Bloomberg's Annabel Drulers. And let's stay on those rather
Speaker 4: expensive AI highs happening at Meta in his name, Shengjia Jao,
Speaker 4: it's chief scientists for its new superintelligence AI group. Joao
Speaker 4: joined Meta in June from over AI.
Speaker 2: For more.
Speaker 5: Let's bringing Kurt Wagner.
Speaker 4: And let's just go through the leadership here, because as
Speaker 4: Alexander Wye Wang of Scale AI, then there's a chief scientist,
Speaker 4: and Ya La Kum is somewhere as well.
Speaker 14: Yeah, that's right. It's been a total re or Caroline
Speaker 14: in the last couple of months. So there's obviously Mark
Speaker 14: Zuckerberg at the top, and I do mention him specifically
Speaker 14: because he's incredibly hands on with it when it comes
Speaker 14: to Meta's AI related to projects. Alexander Wang, the Scale
Speaker 14: AI co founder who they just sort of brought over
Speaker 14: in June after that massive investment they made in Scale AI,
Speaker 14: shengjia Jao. You just mentioned the new chief scientists of
Speaker 14: this super Intelligence Labs.
Speaker 2: Basically that's the group internally that's going to.
Speaker 14: Hopefully for Meta, develop this new model that will be
Speaker 14: super intelligence, right, that will achieve that human level of capability.
Speaker 14: And then Jan mccun is still at Meta. He is
Speaker 14: still a chief scientist by title as well. He is
Speaker 14: running the Fair Group, which is the AI research.
Speaker 2: Division of Meta.
Speaker 14: They were very clear over the weekend and on Friday
Speaker 14: that lacun is still there, still doing the research for Meta.
Speaker 3: I'm grateful you. You talked about Zuckerberg's role right. This
Speaker 3: announcement at the end of last week was on his
Speaker 3: social media platforms and channels. Personally, do we know if
Speaker 3: the team is finished like the Avenger has been assembled
Speaker 3: and that they're done now or are they still out
Speaker 3: there in the marketplace trying to find more people.
Speaker 14: I believe they're still hiring. When we originally broke this
Speaker 14: story back in June that the super Intelligence Group was
Speaker 14: being brought together, we had heard that they were going
Speaker 14: to be around fifty people was the target. I've been
Speaker 14: keeping a spreadsheet ed I'm up to like thirty or so,
Speaker 14: so you know, we're maybe a little over halfway done.
Speaker 14: But I do think clearly they're at a point where
Speaker 14: they feel that they have a large enough group that
Speaker 14: they can start talking about as publicly, start talking about
Speaker 14: the chief scientists, things like that. But I don't think
Speaker 14: we're necessarily at the end of the road for hiring.
Speaker 14: I would think they would hire, you know, no matter
Speaker 14: how many people they get, if they're getting good people.
Speaker 14: I think Mark Zuckerberg has made clear this is a
Speaker 14: collection of talent, and I'm not sure that he's going
Speaker 14: to simply be like, oh, we've hit fifty, therefore we're
Speaker 14: going to say no to other good people. I'm sure
Speaker 14: they'll bring as many good people in the door as
Speaker 14: they can.
Speaker 3: We're actually about talking a little bit more about earnings,
Speaker 3: and lots of investors thinking that the cost of talent
Speaker 3: is going to be something that comes up. Bloomberg's Kutwagner,
Speaker 3: great reporting, Thank you very much. Now coming up, what
Speaker 3: to expect from the big tech earnings that are coming
Speaker 3: up later this week. There are many of them. They're important.
Speaker 3: We'll be right back. This is Bloomberg Tech. Back to
Speaker 3: the big week of tech earnings ahead and here so
Speaker 3: talk about what to expect. Bloomberg's Ryan Lasleica and across
Speaker 3: the equities team. We've done a lot on the terminal
Speaker 3: this morning to get us ready for the week. Let's
Speaker 3: just start with the calendar. What's coming our way over
Speaker 3: the next four or five days.
Speaker 2: Hey, thanks for having me.
Speaker 15: So we have four real highlights coming out this week.
Speaker 15: We have Microsoft, we have Meta, followed by Apple and
Speaker 15: Amazon on Thursday, so four of the maxifice and seven
Speaker 15: following Alphabet and Tessa last week. So obviously just a
Speaker 15: huge week for earnings. We're going to get a lot
Speaker 15: of detail about AI, about growth rates, We're going to
Speaker 15: get some more insight into the impact of tariffs.
Speaker 2: It's going to be a lot going on this week.
Speaker 4: There is, and I'm wondering how analysts and investors are
Speaker 4: like to set themselves up for what ultimately has to
Speaker 4: be perfection. It feels like if you're an Alphabet or
Speaker 4: Tesla or anything to read across.
Speaker 15: From So I would say that when it comes to
Speaker 15: Microsoft and Meta, both of these companies have been performing
Speaker 15: extremely well this year, and these are two companies that
Speaker 15: are really seen being at the cutting edge of AI
Speaker 15: and among the companies that are showing among the early
Speaker 15: benefits in terms of an ROI and all their AI spending.
Speaker 15: Now we're going to be also looking to see how
Speaker 15: much these companies are spending going forward. Their CAPEX plants
Speaker 15: are going to be a real focus this week. Last
Speaker 15: week we did see Alphabet come out, come out and
Speaker 15: really increase its CAPEX. Target markets seem pretty okay with that,
Speaker 15: suggesting that if they're able to justify this level of spending,
Speaker 15: they're not going to get dinged by that. So that's
Speaker 15: a real focus for Meta and Microsoft, which I believe
Speaker 15: both report on Wednesday.
Speaker 2: You also have a street.
Speaker 3: Wrap from the Terminal about the cell size sentiment toward Apple.
Speaker 3: How is the feeling right now about the iPhone maker
Speaker 3: head of later this week.
Speaker 15: Yeah, so Apple is the one where I'd say the
Speaker 15: sentiment is by far the most negative. There are sort
Speaker 15: of a lot of headwinds that are being stacked up
Speaker 15: against it. It does not really have a strong AI
Speaker 15: strategy or product. It faces the most exposure to TERRIF
Speaker 15: related issues. It hasn't been growing, you know, certainly not
Speaker 15: at the pace of some of its big tech peers
Speaker 15: for quite an extent period of time, and the evaluation
Speaker 15: is still on the higher end of things, especially for
Speaker 15: a lot of two companies that are growing much faster,
Speaker 15: So certainly the picture there is a lot more cautious.
Speaker 15: I guess the flip side of this is maybe it's
Speaker 15: a lower bar. Maybe expectations are so low that they're
Speaker 15: able to kind of jump over there. But that's one
Speaker 15: that I think there are a lot of question marks
Speaker 15: on this quarter.
Speaker 4: Meanwhile, after the bettle tomorrow we get Spotify, which is
Speaker 4: that fifty six percent Here today round Vaselica, we have
Speaker 4: you across all the earnings. Thank you so much for
Speaker 4: breaking it down. Meanwhile, that does it in this edition
Speaker 4: of Bloomberg Tech.
Speaker 3: Ed, Yeah, I feel like there's a lot of tension
Speaker 3: in the week, Like we've really set it up to
Speaker 3: be huge recap some of that hype, maybe some of
Speaker 3: that excitement to the week to come on the podcast.
Speaker 3: You know where to find it and all the platforms,
Speaker 3: it's everywhere.
Speaker 2: But I don't know, that's just how it feels. It
Speaker 2: feels like everything's a little bit tense.
Speaker 4: Macro Micro Earnings got a little bit of tariff anxiety
Speaker 4: coming into August the first It's plenty.
Speaker 5: To digest stick with us for the week. This is
Speaker 5: BlueBag tech.