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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News from.

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Speaker 2: The Heart where Innovation of money and power. Collie in

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Speaker 2: Silicon Vallet Nbon.

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Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed.

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Speaker 4: Luod Love.

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Speaker 3: Live from New York. This is Bloomberg Technology.

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Speaker 5: Let us get straight to the breaking geopolitical news and

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Speaker 5: its market impact. Now, the US has indications that Iran

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Speaker 5: is preparing to imminently launch a ballistic missile attack against Israel.

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Speaker 5: So all according to a senior White House official, markets

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Speaker 5: while seeking out safety, We're down on the S and

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Speaker 5: P five hundred more than a percentage point. It was

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Speaker 5: a swift move from the headline, but notably, this is

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Speaker 5: only the biggest sell of since September sixth, not even

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Speaker 5: a month. Nazak one hundred has similar moves to the downside.

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Speaker 5: We're seeing money move into oil up three and a

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Speaker 5: half percent, worries about the supply side there and a

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Speaker 5: tenure yield that crashes down some six basis points. This,

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Speaker 5: of course as we see a search for safety, but

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Speaker 5: we want to bring you the context. Bloomberg's Kaylee lines

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Speaker 5: on the Latest News, we are very pleased to have

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Speaker 5: you in New York. We understand that the US is

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Speaker 5: actively supporting preparations to defend Israel against the possible attack.

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Speaker 6: Yeah, that's right, Caroline, and I would remind everyone that

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Speaker 6: the US already has had to act in tandem with

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Speaker 6: Israel and other allies, including the UK and Jordan about

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Speaker 6: six months ago when Iran launched hundreds of missiles and

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Speaker 6: drones at Israel and an attack back in April. Largely

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Speaker 6: those were intercepted as it was telegraphed beforehand that they

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Speaker 6: were coming. Now, the US intelligence does suggest that iron

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Speaker 6: may be preparing to do something similar as it retaliates

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Speaker 6: against Israel. This is retaliation that we have been expecting

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Speaker 6: for about two months now since Israel took out although

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Speaker 6: it did not claim credit for it, Hamas's political leader

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Speaker 6: in Tehran over the summer. Uran has yet to hit

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Speaker 6: back over that, and there is potentially more for them

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Speaker 6: to retaliate against now after Israel just in the last

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Speaker 6: week was able to kill the leader of Hamasna san

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Speaker 6: has Hassan Asrala of course in Lebanon, and has just

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Speaker 6: in the last twenty four hours launched a ground incursion

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Speaker 6: into Lebanon and what they're calling targeted operations. But that

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Speaker 6: is the kind of behavior that the US and others

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Speaker 6: have been warning could be seen as escalatory as everyone

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Speaker 6: is trying to fend off a wider regional war in

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Speaker 6: the Middle East, but still Israel is moving into Lebanon

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Speaker 6: as we speak. And Hesbela, of course, one of the

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Speaker 6: most powerful, if not the most powerful, Iranian proxy, has

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Speaker 6: been seriously weakened by Israeli activity over the last several weeks,

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Speaker 6: not just with the killing of Nostralla, but also of

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Speaker 6: a number of senior commanders, the explosions of pagers and

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Speaker 6: walkie talkies in recent weeks that has limited their ability

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Speaker 6: to communicate, and the weekend Hesbola could be seen potentially

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Speaker 6: as a week in Iran and Iran wanting to show

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Speaker 6: could be wanting to show here a force of strength

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Speaker 6: in the region, even if it does have the potential

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Speaker 6: to draw others more directly into this conflict, including the

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Speaker 6: United States, which is yesterday said they're sending thousands of

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Speaker 6: more troops and assets into the region.

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Speaker 5: You give us a context of the US response, Kanie.

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Speaker 5: All of this comes after, of course, what Iran did

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Speaker 5: in April. This isn't the first time that we've seen

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Speaker 5: them respond but at that time it almost felt as

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Speaker 5: though it wasn't as aggressive as it could have been.

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Speaker 5: What are you getting in terms of signals now, yeah.

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Speaker 3: Caroline, that's absolutely right.

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Speaker 6: It was explained to me back in April that Iran

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Speaker 6: sent its slowest drones first. Essentially they were trying to

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Speaker 6: signal that this attack was coming, and of course that

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Speaker 6: enabled the attack to largely be intercepted. It resulted in

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Speaker 6: very little damage to Israeli infrastructure. Only one person was

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Speaker 6: ultimately killed, So that was escalation that actually was more

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Speaker 6: de escalatory than it was escalatory. Israel hit back in

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Speaker 6: a relatively my own manner and no tensions were continuing

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Speaker 6: to climb from there at that point. The question is

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Speaker 6: going to be the size and scope of Iran's response

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Speaker 6: this time around. After that original killing of the Hamas

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Speaker 6: political leader in t I Ran earlier this summer, many

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Speaker 6: Middle East experts I was speaking with were warning that

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Speaker 6: Iran might actually want to land a punch this time

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Speaker 6: in a way that it didn't back in April due

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Speaker 6: to that inn of everything pretty much that they sent over.

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Speaker 6: So it's going to be a question of how limited

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Speaker 6: in scope Aron chooses to be here as Iran may

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Speaker 6: not have direct incentive to escalate this war further put

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Speaker 6: its own self into this conflict rather than doing the

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Speaker 6: fighting through its proxies as we've been seeing them do

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Speaker 6: since October seventh, which is of course now almost a

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Speaker 6: full year ago, and of course not wanting to draw

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Speaker 6: more direct conflict with the United States either, because when

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Speaker 6: American troops get involved, Caroline, that is where thanks get

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Speaker 6: a whole lot trickier.

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Speaker 5: Bloom Meg's Katie lines, thank you so much for being here. Meanwhile,

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Speaker 5: we want to get yet more insight for you now.

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Speaker 5: Bloomg's Dan Williams is on the ground Israel's Northern Command

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Speaker 5: close to.

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Speaker 3: The Lebanese border.

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Speaker 5: Now we know that the imminent threat of the attack

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Speaker 5: on Israel follows as Kaylie was pointing out, Israeli forces

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Speaker 5: moving into southern Lebanon in an escalation of their own

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Speaker 5: campaign against Tran backed hezbelah Dan.

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Speaker 3: What's the latest on the ground?

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Speaker 1: Has now all the Lady publicly moved round forces on

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Speaker 1: a fairly large scale, while at the same time revealing

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Speaker 1: to the world that since November of last year, it

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Speaker 1: has been conducting dozens of small scale commander operations, but

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Speaker 1: across that very border in order to prepare for what

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Speaker 1: we've seen in the last hours, in order to collect

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Speaker 1: intelligence in order to detect and dismantle Hezbeler position at

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Speaker 1: e the bod use for a crosswater attack by Asbella

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Speaker 1: resembling the October seventh attack by Hamask on his rol.

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Speaker 5: From Garsen, Dan Williams on the move for us. Now,

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Speaker 5: we so appreciate your time. Now let's get a market

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Speaker 5: reaction toward is a very people focused story, geopolitical story,

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Speaker 5: and then we will move on to the world of technology.

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Speaker 5: Alga portfolio manager on core Corawford is with us. It's

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Speaker 5: difficult to respond to breaking news on the day. But

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Speaker 5: does any of this vindicate a knee jerk reaction that

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Speaker 5: we see in the markets?

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Speaker 3: For sure?

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Speaker 7: I mean, look, anytime there's uncertainty, it's going to hit

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Speaker 7: the market because the ramifications of a war are clearly

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Speaker 7: you know, global, widespread and impactful. You know, besides the

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Speaker 7: fact that it's very sad, and you know, the market

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Speaker 7: reaction is not surprising at all.

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Speaker 5: Uncle, when you look at what the biggest point drags

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Speaker 5: are on a Nasdaq benchmark, on an S and P benchmark,

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Speaker 5: Unsurprisingly they are big tech, but that's largely because they

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Speaker 5: are the biggest companies out there, rather than they have

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Speaker 5: the most exposure to any geopolitical tensions. But does that

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Speaker 5: warrant a desire to pull back on any over focus

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Speaker 5: on the Magnificent seven for example?

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Speaker 7: You know, I think it's it's clear as the market

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Speaker 7: has outflows and people try and sell the market that

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Speaker 7: the mag seven are the biggest proportion of the benchmarks

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Speaker 7: and the easiest place to take capital from. So it's

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Speaker 7: not surprising that they're they're underperforming. Does it give us

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Speaker 7: any less conviction in the long term of where these

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Speaker 7: businesses are going? It doesn't, and it doesn't really change

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Speaker 7: that thesis.

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Speaker 5: Talk to about where these businesses are going. Today, we

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Speaker 5: have Apple on the downside significantly, not just because of

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Speaker 5: the market selling, but because of worries about the sales

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Speaker 5: of its iPhone sixteen. A lot of that predicated on

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Speaker 5: when it will really intertwine AI into that offering. The

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Speaker 5: flip side, Microsoft today is showing off its prowess in

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Speaker 5: the area of consumer AI. What is the thesis for

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Speaker 5: these names and how much we'll actually start all using

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Speaker 5: the artificial intelligence they promise?

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Speaker 7: Yeah, so you know, one thing I'd like to remind

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Speaker 7: everyone is that AI burst onto the consumer scene only

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Speaker 7: twenty two months ago, and we are expecting the leaps

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Speaker 7: and bounds we expecting revenue, and you know, the ROI

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Speaker 7: inside of twenty two months is probably the fastest expectation

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Speaker 7: baked into any company for any technological revolution. And so

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Speaker 7: you know, where I think they're going is AI will

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Speaker 7: be integrated with everything that we do. And today we

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Speaker 7: think of it as a copilot. I think it's really

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Speaker 7: a co worker of where we're going to. A personal

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Speaker 7: digital assistant is where the consumer AI will go. And

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Speaker 7: then one has to really ask for a company like Apple,

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Speaker 7: can they actually abstract you away from your phone and

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Speaker 7: abstract you away from the app layer and really significantly

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Speaker 7: change the business model as they go into a more

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Speaker 7: personalized digital assistant type world?

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Speaker 3: And what is that worth to Apple?

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Speaker 8: Know?

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Speaker 3: What is that worth to a consumer?

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Speaker 7: I would argue that it's significantly more than worrying about

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Speaker 7: a near term product cycle, because you know that software

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Speaker 7: based product cycle is coming.

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Speaker 5: We have been talking about the AI impact on stocks

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Speaker 5: on revenue for twenty two months, even if the consumer

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Speaker 5: hasn't embraced it.

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Speaker 3: As much as perhaps the market wants to talk about it.

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Speaker 5: Where have it we embraced in terms of the stokes

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Speaker 5: that will rally that we haven't really seen outperform yet.

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Speaker 7: Yeah, I think I think AI is going to go

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Speaker 7: through waves. So initially we've looked at the pigs and shovels,

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Speaker 7: and it has been Nvidia, the semiconductor companies, and even

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Speaker 7: inside the semis.

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Speaker 3: It hasn't been all semis.

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Speaker 7: There have been a select few and there's been a

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Speaker 7: big bifurcation. We've seen it in a select number of industrials,

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Speaker 7: those that cater to data center and the changing data center.

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Speaker 7: Then we saw it in in electricity with some of

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Speaker 7: these nuclear nuclear plays and the utilities and then catching

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Speaker 7: on fire.

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Speaker 3: And so you know, I.

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Speaker 7: Believe the next phase of this is going to come

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Speaker 7: in the rest of the data center and also those

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Speaker 7: companies that show that by using AI they're in fact

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Speaker 7: improving their operating margins. And that's the next phase. Now

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Speaker 7: I expect that to come and you know, twenty five

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Speaker 7: to twenty six, because still deploying this AI is not

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Speaker 7: necessarily flipping on a switch.

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Speaker 3: It takes some planning.

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Speaker 5: AI is of course disrupting many a vertical. We think

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Speaker 5: how it's going to be applied to healthcare, we think

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Speaker 5: of how it's going to be applied to finance. I

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Speaker 5: go back to our top story of the day and

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Speaker 5: geopolitical tensions. How much will it be applied to defense?

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Speaker 5: And is that an area that you've been thinking would

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Speaker 5: be outperforming not only in a gypolitical instance, but also

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Speaker 5: from an AI backing.

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Speaker 7: Yeah, it absolutely will that the amount of money that

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Speaker 7: will be required to shore up our defenses and that

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Speaker 7: will be spent on defense is going to be significant,

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Speaker 7: and in part because you know, just like the Industrial

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Speaker 7: Revolution and in the late seventeen hundreds kind of change

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Speaker 7: the geopolitical landscape for England at that point in time.

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Speaker 3: I believe that.

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Speaker 7: AI is going to change the geopolitical landscape for whichever

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Speaker 7: country is actually wholeheartedly adopted and then also become leaders

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Speaker 7: in it, and that can set the chessboard for the

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Speaker 7: next fifty years.

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Speaker 5: It's been wonderful to have you in the studio today.

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Speaker 5: We appreciate you going across the whole gamut of breaking news.

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Speaker 3: Unco Crawford ALGA portfolio Manager.

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Speaker 5: Now Taiwan closing its two and a half trillion Dollar

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Speaker 5: stock market as super typhoon Krathon approaches the island with

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Speaker 5: strong winds and heavy rain.

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Speaker 3: Now the market will not conduct.

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Speaker 5: Securities, currency, or fixed income trading on Wednesday, according to

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Speaker 5: statements from its exchanges. Traders are watching for any possible

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Speaker 5: disruption from the typhoon, which is likely to hit the

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Speaker 5: West coast, home to Taiwan's heavy industry manufacturing, including of course,

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Speaker 5: a plant made a.

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Speaker 3: Chip making giant TSMC.

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Speaker 5: Echo Star announced yesterday that it's selling its video distribution

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Speaker 5: business to Direct TV, a merger that the satellite providers

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Speaker 5: have flirted with for almost two decades. We caught up

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Speaker 5: with Ecosta CEO Hamid Akaban.

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Speaker 3: Here's what you have to say.

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Speaker 9: The founders was that this business ends up in great

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Speaker 9: hands and continue to develop according to their lifelong working

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Speaker 9: vision to you know, make it, you know, one of

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Speaker 9: the greatest companies that can make and you know, the

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Speaker 9: combination of the two companies now will be that company.

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Speaker 9: The company that you know is unique in his position

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Speaker 9: in the marketplace. So it's bittersuite, you know in a way.

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Speaker 9: They see it in you know, great hands. They're coming

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Speaker 9: together and being that challenger that Charlie has created over time,

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Speaker 9: but it's also letting it go. It's also very difficult.

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Speaker 9: So the answer is bittersweet, not really obvious.

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Speaker 5: Satellite TV is ultimately in a state of decline.

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Speaker 3: Will this be a period of managed to climb for

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Speaker 3: the bigger company.

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Speaker 9: It's certainly as part of the thesis that you know

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Speaker 9: right now. This is not you know at the time

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Speaker 9: that it used to be ten or fifteen years ago,

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Speaker 9: when the you know, position of these two companies that

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Speaker 9: are coming together was unique and was very strong. The

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Speaker 9: two companies have lost sixty percent of their subscribers over

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Speaker 9: the past since twenty sixteen, They've lost that everyone has

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Speaker 9: access to broadband today, whether it be terrestrial or through

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Speaker 9: satellite starlink, you know, the direct to a consumer digital

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Speaker 9: providers programmers going around these two companies are ten to

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Speaker 9: twenty times largely in terms of customer base. So it

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Speaker 9: is time for these companies to come together to increase

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Speaker 9: their sustainability and ability to negotiate better deals that it

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Speaker 9: can pass on to the consumers.

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Speaker 5: That was Ekosta CEO Hamid Akavan. Now let's continue this

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Speaker 5: PATV measuer. I'm joined by well who Echo Star sold

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Speaker 5: Dish to DirecTV. The CEO now joins us, Bill Morrow. Bill,

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Speaker 5: welcome to the show. And I ask you this now

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Speaker 5: strategy going forward, the combined nineteen million subscribers you now

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Speaker 5: have or do you offer them?

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Speaker 3: Is it managed to climb?

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Speaker 2: Well?

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Speaker 10: Thanks Caroline, And actually we're going to offer them something

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Speaker 10: that the new kind of competition cannot.

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Speaker 2: You think about the volume of.

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Speaker 10: Directed consumer subscription type services. These are the Netflix, Amazon, Primes,

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Speaker 10: HBO Maxes that are out there. They have a very

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Speaker 10: narrow scope of the content that they offer, the way

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Speaker 10: in which they can only navigate through their platforms. Consumers

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Speaker 10: are left with having to pick and choose multiple subscription

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Speaker 10: services and manage this on their own. They're having the

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Speaker 10: difficulty to navigate across these different platforms. With a new

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Speaker 10: company with DirecTV and Dish, will do is number one.

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Speaker 10: It will actually bundle all of those different services together.

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Speaker 10: We'll still have a form of linear or time of

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Speaker 10: day type programming, but we're going to let the consumer

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Speaker 10: pick and choose two or three or four if that's

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Speaker 10: what they want. Of these other directed consumer programs. We'll

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Speaker 10: wrap a user interface around that. We'll make navigation easy,

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Speaker 10: We'll make search and recommendation easy. But equally as important

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Speaker 10: to Caroline is that the combined entity with just under

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Speaker 10: twenty million subscribers will give us them very neat influence

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Speaker 10: on the industry to work with the programmers, to say,

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Speaker 10: the days of the past.

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Speaker 2: If two hundred and fifty channels are gone.

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Speaker 10: Consumers don't want to pay for content that they are

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Speaker 10: never going to watch, and the programmers are still kind

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Speaker 10: of tied to those old carriage agreements. This influence is

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Speaker 10: going to change that it is in the interest of

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Speaker 10: the consumers. We think it's in the industry, the programmers

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Speaker 10: in the long run, and of course to our company

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Speaker 10: as well.

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Speaker 11: Bill.

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Speaker 5: I can see how you offer from a price perspective,

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Speaker 5: and I can also see how ultimately this is about

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Speaker 5: slimming down costs.

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Speaker 3: But what about growth.

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Speaker 5: Do you think you will ever increase that number subscribed

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Speaker 5: or is it about just serving the ones you have?

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Speaker 10: Well, well, Caroline, we've really studied the market and what

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Speaker 10: are the pain points of the current environment that consumers

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Speaker 10: feel and again having to manage multiple subscriptions, not knowing

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Speaker 10: where your content is. Even the biggest search engines that

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Speaker 10: can't keep up when you're looking for a particular season

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Speaker 10: or episode of your favorite.

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Speaker 2: Series, or a movie that you want to watch.

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Speaker 10: We know that the consumers need more than what's available today.

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Speaker 10: By combining these two companies having the influence to be

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Speaker 10: able to change those carriage agreements, we're going to give

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Speaker 10: them thinner, linear bundles of genres that they can pick.

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Speaker 2: We'll let them add in and.

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Speaker 10: Insert in the s FOD or those directed consumer Netflix

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Speaker 10: or Amazon Primetype services and again with a very different

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Speaker 10: kind of experience that will allow us to get back

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Speaker 10: into a growth situation. Now we need the two companies

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Speaker 10: to come together because we are falling fast. You've heard

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Speaker 10: this from a number of different industry experts. So this

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Speaker 10: buys us some time, gives us the influence to shape

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Speaker 10: the industry. That's all about the consumer, and it's going

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Speaker 10: to give something to them that they haven't had.

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Speaker 3: But do we need more streaming?

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Speaker 5: I know that you're thinking about DirecTV stream and Dish TV,

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Speaker 5: and ultimately it sounds that we're going back to the

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Speaker 5: past by rebundling the things we've already snipped in terms

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Speaker 5: of the cord.

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Speaker 10: Number of it is that bundle pass is not going

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Speaker 10: to service going into the future and That's why we

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Speaker 10: believe with a new kind of carriage agreement, it's going

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Speaker 10: to allow you, the rest of the consumers, the rest

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Speaker 10: of your viewers, to pick and choose the genres of

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Speaker 10: their choice and not pay for all the rest of it.

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Speaker 10: So it's not as big of a bundle as what

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Speaker 10: we've seen in the past, and that's what we've been advocating.

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Speaker 10: That was the deal that we struck with Disney. We

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Speaker 10: fought so hard for to be able to get let

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Speaker 10: the consumers pick what they want to watch and not

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Speaker 10: force them to pay for stuff that they'll never tune into.

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Speaker 10: And that is our future.

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Speaker 5: You have other stakeholders, largely private equity now when it

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Speaker 5: comes to TPG, but also the creditors, and a lot

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Speaker 5: of this is based upon whether or not the bondholders

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Speaker 5: of Dish in particular sign up to this. Do you

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Speaker 5: think that will go through? How painful is it to

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Speaker 5: take those sorts of haircuts.

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Speaker 10: Well, we think the current bondholders of the DBS business

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Speaker 10: under Echo Star with Dish are going to have a

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Speaker 10: better deal by converting and exchanging into the debt that

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Speaker 10: we're offering. We think it'll be better leverage ratios than

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Speaker 10: they see today, there's better confidence in terms of this

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Speaker 10: business model about looking forward into the future without the

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Speaker 10: risk that they might perceive today with that DBS business.

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Speaker 10: We also have advocated and explained that while our initial

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Speaker 10: leverage ratio will be in the two and a half times,

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Speaker 10: that still is better than any other PayTV provider that

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Speaker 10: is out in the marketplace today, and within a twelve

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Speaker 10: to twenty four month window, we're going to be very

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Speaker 10: focused on bringing that leverage ratio down to below two.

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Speaker 2: So that's the reason that we believe they're interested.

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Speaker 10: In making this exchange, lowering that debt, making sure that

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Speaker 10: this M and A deal can happen, and then we

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Speaker 10: of course proceed to the FCC and the DOJ for

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Speaker 10: the needed regulatory approvals.

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Speaker 5: We'd like to keep in touch as you go through

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Speaker 5: those approvals. DirecTV CEO Bill Morrow. We really appreciate your time. Now,

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Speaker 5: let's get back to the markets, which are under a

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Speaker 5: significant pressure from geopolitical news today. Of course, through off

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Speaker 5: by one point three percent on the SMPO four hundred.

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Speaker 5: It's a large move, but actually the largest since September

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Speaker 5: the sixth. We have seen this element of volatility prior

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Speaker 5: to this and a's that one hundred off by more

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Speaker 5: than two percent though, so big tech feeling the most pain.

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Speaker 5: Money moves into Brent crude. Money moves into the haven.

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Speaker 5: That is the US tenure will keep you up to

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Speaker 5: speed with the moves between Iran and Israel.

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Speaker 3: This is BlueBag technology.

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Speaker 5: Quick struck check on soft banks ADRs because those equity

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Speaker 5: like instruments that are trading here in the United States

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Speaker 5: off by eight tenths of a percent, but it had

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Speaker 5: been rising and in fact they closed more than three

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Speaker 5: percent higher in Japan trading after the Information reported that

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Speaker 5: the firm's Vision Fund plans to invest five hundred million

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Speaker 5: dollars in open Ai, citing a source.

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Speaker 3: This is, of course, as open ai is kicking off

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Speaker 3: its developers day to day. Bomberg's Rachel Metz is busy.

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Speaker 3: Tell us a little bit more about the investment round.

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Speaker 5: Where we stand in terms of the six and a

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Speaker 5: half billion dollar raise.

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Speaker 12: Yeah, so it is our understanding that that should be

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Speaker 12: closing soon. I mean typically it takes some time for

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Speaker 12: these rounds to close. I would expect her to close, yeah,

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Speaker 12: and the probably, I don't know, soon in the next

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Speaker 12: few days, perhaps.

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Speaker 5: Okay, Keen I what's happening in the private markets. In

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Speaker 5: public they go to their developers today. It will be

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Speaker 5: live streamed. What are we going to expect coming for

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Speaker 5: developers from open Ai?

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Speaker 12: So this is going to be a really different kind

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Speaker 12: of developer day than what they held last year. Last

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Speaker 12: year was the first one, so it was a big

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Speaker 12: splashy day, cool snacks and like stickers, you know, cool

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Speaker 12: stuff like that, and it was in San Francisco. At

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Speaker 12: this point, they actually have a lot of developers. They

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Speaker 12: have three million developers around the world, and they decided

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Speaker 12: to turn this into three events, and sadly for people

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Speaker 12: like us, it is closed to the media. But they're

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Speaker 12: going to have an event in San Francisco's to day,

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Speaker 12: and then they're going to have another one in London

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Speaker 12: and other one in Singapore. Since we have so many

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Speaker 12: developers around the world, they said they want to focus

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Speaker 12: on meeting in smaller groups with these people and also

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Speaker 12: just communicating with them and tailoring some of their API

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Speaker 12: type stuff to them.

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Speaker 5: Very briefly, what is the most exciting area developers have

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Speaker 5: been leaning into.

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Speaker 3: With open Aire.

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Speaker 12: The company actually at this point has a really wide

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Speaker 12: range of software available to developers. So it's a little

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Speaker 12: bit hard to say what specifically they may want to use.

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Speaker 12: I mean, the company has things for content moderation, and

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Speaker 12: it has in the past had things that like it offers,

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Speaker 12: you know, all kinds of chat chat related things. So

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Speaker 12: it really just kind of depends like what you're building,

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Speaker 12: if you want it for you inside of your company,

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Speaker 12: if you want to build it for consumers. So there's

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Speaker 12: there's a lot of options there.

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Speaker 5: Rachel Metz quite excited to see what you bring us

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Speaker 5: a bit later. We appreciate the time. Meanwhile, some breaking

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Speaker 5: news this coming from Samsung going to cut thousands of

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Speaker 5: jobs as part of a worldwide layoff. Once again, Samsung,

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Speaker 5: of course the juggernaut when it comes to chip making,

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Speaker 5: when it comes to hardware within phones, currently of course, televisions,

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Speaker 5: you name it, electronics giant currently saying that it will

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Speaker 5: be cutting thousands of jobs as part of worldwide layoffs.

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Speaker 3: We'll bring you more context.

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Speaker 5: This is Bloomberg Technology. Welcome back to Bloomberg Technology. I'm

443
00:22:36,960 --> 00:22:38,760
Speaker 5: Caroline Hyde in New York. We get back to these

444
00:22:38,800 --> 00:22:41,520
Speaker 5: markets because we have the breaking geopolitical news that the

445
00:22:41,600 --> 00:22:45,600
Speaker 5: US has indications that Iran is preparing to imminently launch

446
00:22:45,640 --> 00:22:48,320
Speaker 5: a ballistic missile attack against Israel. This so all according

447
00:22:48,320 --> 00:22:50,560
Speaker 5: to a senior White House official. We see the move

448
00:22:50,640 --> 00:22:53,280
Speaker 5: and flight to safety, as we like to call it,

449
00:22:53,320 --> 00:22:56,120
Speaker 5: a three year yield current tenure yield currently at three

450
00:22:56,200 --> 00:22:58,800
Speaker 5: spots seventy two. We're down some six basist points SBO

451
00:22:58,800 --> 00:23:01,040
Speaker 5: five hundred, off five percent points similar moves.

452
00:23:00,840 --> 00:23:01,800
Speaker 3: With then astat one hundred.

453
00:23:01,920 --> 00:23:05,160
Speaker 5: So equities under pressure, particularly big tech as they are

454
00:23:05,480 --> 00:23:08,160
Speaker 5: the biggest points movers. They are the largest market capitalizations.

455
00:23:08,160 --> 00:23:11,960
Speaker 5: Brent crude up more than four percent. Let's weave into

456
00:23:12,000 --> 00:23:13,879
Speaker 5: some of the technology names we need to keep an

457
00:23:13,920 --> 00:23:14,159
Speaker 5: eye on.

458
00:23:14,280 --> 00:23:17,080
Speaker 3: Round Glastelica is with us for more and more. Broadly,

459
00:23:17,359 --> 00:23:19,359
Speaker 3: this is a key risk aversion trade today.

460
00:23:19,600 --> 00:23:23,359
Speaker 11: Yes, absolutely, we are seeing pretty broad based weakness across equities,

461
00:23:23,400 --> 00:23:25,679
Speaker 11: but certainly tech, especially since this is a group that

462
00:23:25,680 --> 00:23:27,959
Speaker 11: has done pretty well this year. It seems like they

463
00:23:28,000 --> 00:23:30,520
Speaker 11: are taking some of the initial profit taking here. Some

464
00:23:30,560 --> 00:23:35,160
Speaker 11: of the bigger moves companies like Apple, Nvidia, chip makers. Broadly,

465
00:23:35,280 --> 00:23:37,840
Speaker 11: all of these are stocks that have been taking a

466
00:23:37,840 --> 00:23:40,320
Speaker 11: bit of a drop today on the geopolitical risk and

467
00:23:40,400 --> 00:23:43,040
Speaker 11: the kind of increased uncertainty surrounding path.

468
00:23:43,119 --> 00:23:45,640
Speaker 5: There are individual names that we want to call out

469
00:23:45,640 --> 00:23:48,480
Speaker 5: because well, there's the Moon music and then there's the

470
00:23:48,560 --> 00:23:50,800
Speaker 5: micro news with Apple falling for example.

471
00:23:50,880 --> 00:23:51,520
Speaker 3: Significantly.

472
00:23:51,520 --> 00:23:53,520
Speaker 5: This on the back of once again anxieties around the

473
00:23:53,560 --> 00:23:56,760
Speaker 5: iPhone sixteen sales. Who's been coming back on that particular

474
00:23:56,840 --> 00:23:59,280
Speaker 5: name where we're worried about in the supply chain as well.

475
00:23:59,520 --> 00:24:02,000
Speaker 11: Yeah, there's been a lot of concern about app or

476
00:24:02,000 --> 00:24:04,400
Speaker 11: there's a lot of focus on the upcoming iPhone, which

477
00:24:04,440 --> 00:24:06,400
Speaker 11: is the one that's going to have AI features. They're

478
00:24:06,440 --> 00:24:09,000
Speaker 11: getting some early reads on demand as you're looking at

479
00:24:09,200 --> 00:24:11,520
Speaker 11: pre orders and lead times and things like that. And

480
00:24:11,560 --> 00:24:13,840
Speaker 11: today we had Barclays come out and kind of, you know,

481
00:24:13,880 --> 00:24:15,560
Speaker 11: it was the latest firm to kind of say, maybe

482
00:24:15,560 --> 00:24:17,919
Speaker 11: demand here isn't that strong as people were kind of

483
00:24:17,960 --> 00:24:20,600
Speaker 11: hoping or expecting. There was a lot of optimism built

484
00:24:20,600 --> 00:24:23,719
Speaker 11: around the idea that the AI iPhone was going to

485
00:24:24,000 --> 00:24:27,760
Speaker 11: lead to this big upgrade supercycle. People still kind of

486
00:24:27,800 --> 00:24:31,320
Speaker 11: expect a pretty strong growth out of the AI iPhone

487
00:24:31,359 --> 00:24:33,200
Speaker 11: over the longer term, but maybe this is going to

488
00:24:33,240 --> 00:24:35,119
Speaker 11: be more of a twenty twenty five story than the

489
00:24:35,160 --> 00:24:38,359
Speaker 11: twenty twenty four story. City also came out today. They're

490
00:24:38,400 --> 00:24:41,960
Speaker 11: lowering their iPhone unit forecast for this year, but raising

491
00:24:42,000 --> 00:24:44,320
Speaker 11: them for next year, kind of saying, once the AI

492
00:24:44,400 --> 00:24:47,360
Speaker 11: features are available, then we might see you know, more

493
00:24:47,400 --> 00:24:50,199
Speaker 11: people looking to upgrade them. But for the moment, you know,

494
00:24:50,480 --> 00:24:53,159
Speaker 11: given how much Apple has been up since April, it

495
00:24:53,160 --> 00:24:55,280
Speaker 11: seems like this is a name that people are you know,

496
00:24:55,359 --> 00:24:57,880
Speaker 11: taking some profits in, especially when you have this sort

497
00:24:57,880 --> 00:25:00,879
Speaker 11: of additional question mark both a geopolit but also the

498
00:25:00,920 --> 00:25:01,879
Speaker 11: iPhone pre order.

499
00:25:01,800 --> 00:25:05,160
Speaker 5: Sales ron pushing us forward when we see these sorts

500
00:25:05,200 --> 00:25:09,320
Speaker 5: of snap moves. Apple is an ongoing narrative, but more

501
00:25:09,359 --> 00:25:12,400
Speaker 5: broadly in the market today, do you expect people hate

502
00:25:12,400 --> 00:25:14,360
Speaker 5: to use the ton of phrase but by the deck.

503
00:25:14,720 --> 00:25:16,720
Speaker 11: That's a great question. And you know, one thing I've

504
00:25:16,720 --> 00:25:19,000
Speaker 11: heard is that people kind of look at big tech

505
00:25:19,080 --> 00:25:21,639
Speaker 11: as a more defensive place in the markets. Not a

506
00:25:21,720 --> 00:25:25,600
Speaker 11: traditional defensive sector, but given strong cash flows, pretty durable

507
00:25:25,600 --> 00:25:29,800
Speaker 11: earnings growth, pretty good revenue growth, pretty positive demand tail winds,

508
00:25:29,840 --> 00:25:32,399
Speaker 11: especially when you consider you know, interests in AI and

509
00:25:32,440 --> 00:25:35,400
Speaker 11: so forth. If people happen always looking to big tech

510
00:25:35,520 --> 00:25:38,720
Speaker 11: as a area to go into in periods of heightened uncertainty,

511
00:25:38,760 --> 00:25:42,000
Speaker 11: they have some save harbor sort of characteristics. Although there

512
00:25:42,000 --> 00:25:44,480
Speaker 11: are some concerns about valuations given how much they moved

513
00:25:44,520 --> 00:25:46,880
Speaker 11: up this year. Would not surprise me if you did

514
00:25:46,880 --> 00:25:49,520
Speaker 11: see people, you know, looking around saying there's a lot

515
00:25:49,520 --> 00:25:52,439
Speaker 11: of uncertainty right now. Tech looks like a place of

516
00:25:52,480 --> 00:25:54,919
Speaker 11: relative certainty, and they're willing to pay up for that.

517
00:25:55,440 --> 00:25:57,080
Speaker 5: We see the S and P five hundred just bouncing

518
00:25:57,080 --> 00:25:58,640
Speaker 5: off its lows round Lostelca.

519
00:25:58,960 --> 00:26:01,440
Speaker 3: Thank you. Now, let's bringin blue mugs.

520
00:26:01,480 --> 00:26:04,280
Speaker 5: Mike Shephard, Now on the latest news when we are

521
00:26:04,359 --> 00:26:07,919
Speaker 5: understanding the US, Mike is actively supporting preparations to defend

522
00:26:08,040 --> 00:26:10,840
Speaker 5: Israel against any possible attack from Iran.

523
00:26:11,080 --> 00:26:13,119
Speaker 3: Can you bring us the latest in Washington.

524
00:26:13,040 --> 00:26:16,000
Speaker 8: Yes, Carolina, It's all happening very fast here today. We

525
00:26:16,040 --> 00:26:19,439
Speaker 8: saw mid this morning a warning from the White House

526
00:26:19,600 --> 00:26:24,080
Speaker 8: that Iran was making preparations to retaliate against Israel with

527
00:26:24,280 --> 00:26:27,600
Speaker 8: a ballistic missile attack that could be imminent. Now, in

528
00:26:27,640 --> 00:26:29,800
Speaker 8: a way, this is reminiscent of the kind of warning

529
00:26:29,800 --> 00:26:33,080
Speaker 8: that we saw in twenty twenty two in February, when

530
00:26:33,320 --> 00:26:38,280
Speaker 8: the US was warning that Russia was preparing to invade Ukraine.

531
00:26:38,359 --> 00:26:40,920
Speaker 8: So the US is sharing some of the intelligence and

532
00:26:40,960 --> 00:26:43,399
Speaker 8: some of the information that it is seeing out there

533
00:26:43,480 --> 00:26:46,040
Speaker 8: in the world, and that typically in the past has

534
00:26:46,119 --> 00:26:49,800
Speaker 8: kept secret, that it's kept under under wraps for the

535
00:26:49,840 --> 00:26:51,960
Speaker 8: sake of sharing with governments, but it is trying to

536
00:26:52,000 --> 00:26:55,919
Speaker 8: show that Tehran, we are watching your next move and

537
00:26:55,960 --> 00:26:58,960
Speaker 8: we are also making preparations to defend Israel, which is

538
00:26:59,000 --> 00:27:01,960
Speaker 8: one of the closest US allies in the Mideast.

539
00:27:02,320 --> 00:27:05,720
Speaker 5: The key to de escalate, not see an escalation, but

540
00:27:05,800 --> 00:27:07,120
Speaker 5: that feeling likely right now.

541
00:27:07,440 --> 00:27:10,600
Speaker 8: Well. The US has been calling for de escalation and

542
00:27:10,760 --> 00:27:17,600
Speaker 8: trying to push Israel and Hamas, another Iran backed terrorist group,

543
00:27:17,720 --> 00:27:21,600
Speaker 8: and Hezbollah as well to try to meet to de

544
00:27:21,800 --> 00:27:25,600
Speaker 8: escalate to defuse this latest round of violence. But it

545
00:27:25,640 --> 00:27:29,240
Speaker 8: has been moving very quickly in neither side. Neither Israel

546
00:27:29,600 --> 00:27:32,360
Speaker 8: nor the Iran back groups are showing any sign of

547
00:27:32,920 --> 00:27:35,240
Speaker 8: being willing to go to the table to try to

548
00:27:35,280 --> 00:27:38,680
Speaker 8: talk this out. And in fact, overnight we saw Israel

549
00:27:39,160 --> 00:27:43,640
Speaker 8: moving forces into southern Lebanon, ground troops into southern Lebanon

550
00:27:43,720 --> 00:27:48,240
Speaker 8: to conduct what it called limited ground operations. So we

551
00:27:48,359 --> 00:27:51,199
Speaker 8: may be in here for a bit and US is

552
00:27:51,240 --> 00:27:53,280
Speaker 8: concerned Israel maybe overreaching.

553
00:27:54,080 --> 00:27:57,600
Speaker 5: Mike, we are the Blueback Technology show, and often we

554
00:27:57,680 --> 00:28:01,960
Speaker 5: associate Israel with its technology. How are we seeing that

555
00:28:02,160 --> 00:28:04,600
Speaker 5: industry affected? Is it far too soon to be talking

556
00:28:04,640 --> 00:28:05,879
Speaker 5: about that in this current instance.

557
00:28:06,119 --> 00:28:09,040
Speaker 8: Well, it's a great question, Caroline, because we see the

558
00:28:09,080 --> 00:28:14,200
Speaker 8: economic impact of conflict in the war in Ukraine. We've

559
00:28:14,240 --> 00:28:17,119
Speaker 8: seen the economic fallout from that, and there is economic

560
00:28:17,240 --> 00:28:21,560
Speaker 8: fallout here. It's early to tell whether businesses are really

561
00:28:21,640 --> 00:28:24,320
Speaker 8: thinking about whether Israel is a good place to be.

562
00:28:24,480 --> 00:28:27,600
Speaker 8: But for the tech sector, Israel is a significant player.

563
00:28:28,080 --> 00:28:31,159
Speaker 8: The Israeli Innovation Authority says that it accounts for as

564
00:28:31,200 --> 00:28:34,959
Speaker 8: much as twenty percent of the nation's economy. Israel has

565
00:28:34,960 --> 00:28:39,400
Speaker 8: a reputation for being an incubator of startups, especially in

566
00:28:39,680 --> 00:28:42,920
Speaker 8: the cybersecurity and fintech areas. So we'll want to see

567
00:28:42,960 --> 00:28:47,360
Speaker 8: how they assess what happens next with Iran over the

568
00:28:47,400 --> 00:28:51,480
Speaker 8: next few days and weeks and months, to see whether

569
00:28:51,600 --> 00:28:54,960
Speaker 8: stability has an impact on their operations in bags.

570
00:28:54,960 --> 00:28:58,680
Speaker 5: Mike Shephard, we thank you, and let's keep talking about

571
00:28:58,720 --> 00:29:01,920
Speaker 5: other economic news here in the United States. The fallout

572
00:29:01,960 --> 00:29:04,520
Speaker 5: from dock workers walking out of every major port on

573
00:29:04,560 --> 00:29:06,640
Speaker 5: the US East and Gulf coasts for.

574
00:29:06,560 --> 00:29:08,160
Speaker 3: The first time in nearly fifty years.

575
00:29:08,200 --> 00:29:11,040
Speaker 5: It's affecting thirty six ports which have the combined capacity

576
00:29:11,040 --> 00:29:13,960
Speaker 5: to handle as much as half of all US trade volumes.

577
00:29:14,160 --> 00:29:16,680
Speaker 5: No Meg, Danny Burger joins US now from New Jersey,

578
00:29:16,800 --> 00:29:20,360
Speaker 5: and the latest is a pushback against automation and a

579
00:29:20,400 --> 00:29:24,040
Speaker 5: desire for higher wages here, Danny, that's.

580
00:29:23,960 --> 00:29:24,640
Speaker 3: Right, Caroline.

581
00:29:24,720 --> 00:29:26,960
Speaker 13: At the moment what we know of what's being offered,

582
00:29:27,000 --> 00:29:30,080
Speaker 13: the two sides are starting to move. They are starting

583
00:29:30,160 --> 00:29:32,800
Speaker 13: to come closer together, so talks are ongoing.

584
00:29:33,160 --> 00:29:34,800
Speaker 3: Still they have not met in the middle. So the

585
00:29:34,840 --> 00:29:38,120
Speaker 3: details of which, yes, you said, wages. The most recent.

586
00:29:37,840 --> 00:29:40,840
Speaker 13: Wage offer from the employers of the dock workers, that

587
00:29:40,960 --> 00:29:44,400
Speaker 13: is the us MX United States Marine Association, late last

588
00:29:44,440 --> 00:29:47,480
Speaker 13: night they said that they were offering a fifty percent

589
00:29:47,560 --> 00:29:52,040
Speaker 13: wage increase. Reports suggest that the dock workers themselves are

590
00:29:52,080 --> 00:29:54,880
Speaker 13: now looking for a sixty one and a half percent

591
00:29:55,120 --> 00:29:58,120
Speaker 13: wage increase. That's coming down from seventy seven. So they

592
00:29:58,160 --> 00:30:01,240
Speaker 13: are inching closer. But Caroline, you are so right. One

593
00:30:01,280 --> 00:30:04,320
Speaker 13: of the last sticking points is still automation. In their

594
00:30:04,400 --> 00:30:07,440
Speaker 13: update last night, when they offered that fifty percent wage increase,

595
00:30:07,720 --> 00:30:10,920
Speaker 13: the employer said that they would keep the current language

596
00:30:10,960 --> 00:30:14,920
Speaker 13: in the contract about automation. Now, the current contract basically

597
00:30:14,960 --> 00:30:18,320
Speaker 13: prevents them from expanding any automation. There's a question as

598
00:30:18,320 --> 00:30:20,800
Speaker 13: to whether that's going to be enough for the dock workers.

599
00:30:21,120 --> 00:30:23,960
Speaker 13: Part of the disagreement started this past summer when it

600
00:30:24,040 --> 00:30:27,320
Speaker 13: seems like a port in Alabama was indeed starting to

601
00:30:27,400 --> 00:30:30,480
Speaker 13: use more automation, and the dock worker said, hey, that's

602
00:30:30,560 --> 00:30:33,280
Speaker 13: violating our contract. We don't want more automation for fear

603
00:30:33,320 --> 00:30:35,680
Speaker 13: that it's going to lose their job. So, yes, Caroline,

604
00:30:35,720 --> 00:30:38,160
Speaker 13: they're starting to inch closer together when it comes to

605
00:30:38,200 --> 00:30:41,600
Speaker 13: the pay number. But is that current language about automation.

606
00:30:41,280 --> 00:30:42,720
Speaker 3: And not That is still a question.

607
00:30:43,440 --> 00:30:47,200
Speaker 5: And to that point, we sold these issues, these disputes

608
00:30:47,280 --> 00:30:49,520
Speaker 5: on the West Coast. We've seen them in all the industries,

609
00:30:49,920 --> 00:30:53,320
Speaker 5: whether it comes to a pushback against AI in Hollywood.

610
00:30:53,960 --> 00:30:58,080
Speaker 5: How ultimately do we see the contracts change? Do we

611
00:30:58,120 --> 00:31:01,400
Speaker 5: see an ability to stop technology moving forward?

612
00:31:02,320 --> 00:31:05,760
Speaker 13: The employers of these dock workers would argue, no, Caroline,

613
00:31:05,760 --> 00:31:10,120
Speaker 13: that it's inevitable. In fact, most docs use this automated technology.

614
00:31:10,160 --> 00:31:12,320
Speaker 13: You could argue that the East Coast is behind in

615
00:31:12,360 --> 00:31:15,320
Speaker 13: this regard. You have both Asia and the main ports

616
00:31:15,360 --> 00:31:19,520
Speaker 13: in Amsterdam. They use the automated technology. Now a lot

617
00:31:19,560 --> 00:31:21,680
Speaker 13: of the employers would point to the fact that they

618
00:31:21,680 --> 00:31:24,920
Speaker 13: still have dock workers there. They're just simply doing different jobs.

619
00:31:25,160 --> 00:31:28,240
Speaker 13: Instead of loading and offloading cargo, they are just working

620
00:31:28,480 --> 00:31:32,240
Speaker 13: in an office remotely. But again the dock workers might argue, Caroline,

621
00:31:32,280 --> 00:31:35,160
Speaker 13: that's all well and good, but you need guarantees. You

622
00:31:35,200 --> 00:31:37,360
Speaker 13: need to make sure that people aren't losing their job

623
00:31:37,680 --> 00:31:41,080
Speaker 13: and that upskilling is taking place, that there are proper

624
00:31:41,120 --> 00:31:43,680
Speaker 13: measures put in place that the folks who are currently

625
00:31:43,720 --> 00:31:46,840
Speaker 13: working can adapt to this new reality. By the way,

626
00:31:46,880 --> 00:31:50,200
Speaker 13: there are studies that show maybe even automation doesn't necessarily

627
00:31:50,240 --> 00:31:53,240
Speaker 13: speed things up. It's not a clear cut thing. So

628
00:31:53,440 --> 00:31:55,800
Speaker 13: at the moment, they still seem to be at loggerheads

629
00:31:55,800 --> 00:31:59,280
Speaker 13: and you know, it's technology. It marches forward. It might

630
00:31:59,400 --> 00:32:02,400
Speaker 13: be a hard tied to put back out to shore.

631
00:32:03,120 --> 00:32:05,760
Speaker 3: Annie Berger, we appreciate you. Thank you.

632
00:32:06,040 --> 00:32:09,080
Speaker 5: Coming up, Microsoft is out with new features to its

633
00:32:09,080 --> 00:32:12,440
Speaker 5: Copilot AI assistant, or on that next, this is blue

634
00:32:12,480 --> 00:32:41,200
Speaker 5: Meg Technology.

635
00:32:29,120 --> 00:32:29,760
Speaker 3: Microsoft.

636
00:32:29,920 --> 00:32:33,320
Speaker 5: It's adding voice and vision features to its consumer focused

637
00:32:33,320 --> 00:32:34,200
Speaker 5: AI assistant.

638
00:32:34,440 --> 00:32:35,520
Speaker 3: This in a bit to really.

639
00:32:35,360 --> 00:32:38,959
Speaker 5: Demonstrate a payoff from a pretty huge investment in artificial intelligence.

640
00:32:38,960 --> 00:32:40,760
Speaker 3: Bluebagstina bas joins us.

641
00:32:40,640 --> 00:32:43,400
Speaker 5: Some more and Diana you've seen it, you've written about it.

642
00:32:43,440 --> 00:32:45,200
Speaker 3: What most excites you about the updates?

643
00:32:45,520 --> 00:32:48,520
Speaker 14: So look, the things that we're seeing there are most

644
00:32:48,560 --> 00:32:50,760
Speaker 14: new really in the form of an update to the

645
00:32:50,800 --> 00:32:53,960
Speaker 14: Copilot consumer app, which is going to start rolling out

646
00:32:54,040 --> 00:32:56,240
Speaker 14: today for there's an iOS.

647
00:32:55,960 --> 00:32:57,200
Speaker 2: Version, there's an Android version.

648
00:32:57,240 --> 00:33:00,560
Speaker 14: They're also starting to chry out on WhatsApp, which is

649
00:33:00,600 --> 00:33:03,280
Speaker 14: new for them, and one of the more interesting things

650
00:33:03,320 --> 00:33:07,360
Speaker 14: that they're adding our vision features that attempt to have

651
00:33:07,520 --> 00:33:10,120
Speaker 14: the AI know what you're looking at when you're looking

652
00:33:10,160 --> 00:33:13,120
Speaker 14: at a web page and then suggests other things you

653
00:33:13,200 --> 00:33:16,240
Speaker 14: might want to do next steps, answer questions, things like that.

654
00:33:16,960 --> 00:33:20,640
Speaker 14: It's an interesting concept, but also a tricky one because

655
00:33:20,640 --> 00:33:22,360
Speaker 14: you have to figure out how to do that while

656
00:33:22,400 --> 00:33:26,040
Speaker 14: maintaining privacy, while maintaining safety, and so what they're doing

657
00:33:26,040 --> 00:33:28,760
Speaker 14: in the original the preview version they're putting out today

658
00:33:28,760 --> 00:33:31,480
Speaker 14: is a bit limited. It's only for certain websites, it's

659
00:33:31,520 --> 00:33:33,760
Speaker 14: not going to save your data once you shut down

660
00:33:33,760 --> 00:33:37,000
Speaker 14: the app, things like that. But in this feature and

661
00:33:37,040 --> 00:33:39,720
Speaker 14: in general, what they're going to have to balance is

662
00:33:40,280 --> 00:33:43,760
Speaker 14: AI that attracts consumer interests by being more personal, by

663
00:33:44,160 --> 00:33:46,200
Speaker 14: being more what a user wants, while at the same

664
00:33:46,280 --> 00:33:49,800
Speaker 14: time not creeping people out, not violating their privacy. I

665
00:33:49,880 --> 00:33:53,479
Speaker 14: talked a little bit to Microsoft's consumer AI chief, moustaf

666
00:33:53,520 --> 00:33:56,320
Speaker 14: A famili amount about this, and you know what he

667
00:33:56,440 --> 00:33:59,560
Speaker 14: really wants in order to attract consumers is kind of

668
00:33:59,840 --> 00:34:02,960
Speaker 14: more emotional, you know, more of an emotional connection.

669
00:34:03,120 --> 00:34:04,360
Speaker 2: But again, that's a balance.

670
00:34:05,000 --> 00:34:07,360
Speaker 5: Dana Bass sets us up perfectly, and we thank you

671
00:34:07,440 --> 00:34:09,359
Speaker 5: because we can talk about this a little bit more

672
00:34:09,480 --> 00:34:12,160
Speaker 5: with Usef Mehdi, his executive vice president and consumer chief

673
00:34:12,160 --> 00:34:15,160
Speaker 5: Marketing officer at Microsoft. That balance is hard. How do

674
00:34:15,200 --> 00:34:16,799
Speaker 5: you not freak people out with how good it is?

675
00:34:17,200 --> 00:34:17,399
Speaker 15: Yeah?

676
00:34:17,400 --> 00:34:20,239
Speaker 4: Absolutely. I think that's one of the interesting things about

677
00:34:20,280 --> 00:34:23,399
Speaker 4: technology now is how we shape it. It's changing quite

678
00:34:23,400 --> 00:34:25,200
Speaker 4: a bit from something that was just sort of ones

679
00:34:25,239 --> 00:34:28,760
Speaker 4: and zeros and answers to now an ongoing conversation with copal,

680
00:34:28,880 --> 00:34:31,320
Speaker 4: your AI companion, where it can help you and support

681
00:34:31,400 --> 00:34:34,160
Speaker 4: you throughout your entire day, across almost anything that you're

682
00:34:34,160 --> 00:34:34,600
Speaker 4: working on.

683
00:34:35,080 --> 00:34:40,480
Speaker 5: Okay, So the enhancements from a vision from a voice perspective,

684
00:34:41,200 --> 00:34:43,120
Speaker 5: Am I going to feel like I'm talking to an agent?

685
00:34:43,120 --> 00:34:45,080
Speaker 5: Am I going to be able to outsource my day?

686
00:34:45,840 --> 00:34:46,080
Speaker 15: Yeah?

687
00:34:46,120 --> 00:34:48,160
Speaker 4: I think we're really moving from what I think of

688
00:34:48,239 --> 00:34:51,040
Speaker 4: as an AI tool to an AI companion, and a

689
00:34:51,080 --> 00:34:53,640
Speaker 4: companion in the sense that you trust it, you feel

690
00:34:53,680 --> 00:34:56,080
Speaker 4: it's more personal. And when you speak to it with

691
00:34:56,120 --> 00:34:58,600
Speaker 4: the new corporal a voice that we're announcing today, it's

692
00:34:58,640 --> 00:35:01,200
Speaker 4: it's so fast, it's very fluent. You can interrupt it.

693
00:35:01,280 --> 00:35:03,879
Speaker 4: This is not like the old Hey Alexa, Hey Siri,

694
00:35:03,960 --> 00:35:05,719
Speaker 4: and you have to wait. This is literally you talk

695
00:35:05,800 --> 00:35:07,839
Speaker 4: to it and it will have a sense of warmth

696
00:35:07,880 --> 00:35:10,360
Speaker 4: and a sense of your energy and personality, so it'll

697
00:35:10,360 --> 00:35:12,719
Speaker 4: match that to you. So if you're nervous about a

698
00:35:12,719 --> 00:35:15,640
Speaker 4: big trip or about a presentation, it'll coach you through.

699
00:35:15,640 --> 00:35:18,120
Speaker 4: If you're excited about, you know, a kid's birthday party,

700
00:35:18,120 --> 00:35:18,399
Speaker 4: but you.

701
00:35:18,360 --> 00:35:19,600
Speaker 3: Need some ideas, it'll help you.

702
00:35:19,960 --> 00:35:22,520
Speaker 4: So that kind of voice and that fluency will really

703
00:35:22,640 --> 00:35:23,719
Speaker 4: change how you use AI.

704
00:35:24,280 --> 00:35:27,080
Speaker 5: Are more people actually using the tools you're building them?

705
00:35:27,480 --> 00:35:29,319
Speaker 4: Yeah, we've seen a lot. So we've seen, you know,

706
00:35:29,440 --> 00:35:32,200
Speaker 4: millions and millions of people now every day slowly using

707
00:35:32,239 --> 00:35:34,920
Speaker 4: it for more examples, for more questions, And that's in

708
00:35:34,920 --> 00:35:37,200
Speaker 4: fact what goes into how we build a product. But

709
00:35:37,280 --> 00:35:39,920
Speaker 4: I think this what we're announcing today with Voice and

710
00:35:40,080 --> 00:35:42,480
Speaker 4: Vision is going to be that unlock that's going to

711
00:35:42,680 --> 00:35:45,319
Speaker 4: make it a novelty to something that's mainstream that we

712
00:35:45,400 --> 00:35:45,919
Speaker 4: use every day.

713
00:35:46,000 --> 00:35:48,239
Speaker 5: And I'm kind of being promised to an unlock everywhere.

714
00:35:48,320 --> 00:35:50,600
Speaker 5: Whether I'm going to just easily integrate it into my

715
00:35:50,680 --> 00:35:52,960
Speaker 5: Apple iPhone, whether I can just go to WhatsApp and

716
00:35:53,000 --> 00:35:56,120
Speaker 5: easily use METROI, whether I'm looking at a whole new

717
00:35:56,160 --> 00:35:58,359
Speaker 5: app and having to download Chatching BT and use it.

718
00:35:58,800 --> 00:36:01,759
Speaker 3: Why use your verse? What is it like in terms

719
00:36:01,800 --> 00:36:03,479
Speaker 3: of competing for consumer time?

720
00:36:03,960 --> 00:36:06,080
Speaker 4: Yeah, no, it's a great point, and our time is

721
00:36:06,120 --> 00:36:08,640
Speaker 4: so busy. I think the difference will be And what's

722
00:36:08,680 --> 00:36:10,520
Speaker 4: going to announce today is, first off, you have an

723
00:36:10,520 --> 00:36:13,640
Speaker 4: AI model that's so much faster, and it really, as

724
00:36:13,640 --> 00:36:15,719
Speaker 4: I said, it understands you and it connects with you

725
00:36:15,760 --> 00:36:18,360
Speaker 4: in a more human way. The second thing the voice,

726
00:36:18,360 --> 00:36:20,719
Speaker 4: the convenience of it. It's one thing it's say, hey,

727
00:36:20,960 --> 00:36:23,280
Speaker 4: we all learned Spanish in high school. We're kind of proficient,

728
00:36:23,280 --> 00:36:25,680
Speaker 4: but we're not fluent. This is fluent where you can

729
00:36:25,719 --> 00:36:28,040
Speaker 4: think and it can act for you if you let

730
00:36:28,040 --> 00:36:30,120
Speaker 4: it give you give it some points and tips, and

731
00:36:30,160 --> 00:36:32,600
Speaker 4: that will really change I think the use case for it.

732
00:36:33,239 --> 00:36:36,319
Speaker 5: But why your version rather than open AI which is

733
00:36:36,560 --> 00:36:39,520
Speaker 5: sort of the underpinning of the technological advancements you're making.

734
00:36:39,680 --> 00:36:41,959
Speaker 4: Yeah, and then there are many great offerings out there.

735
00:36:42,160 --> 00:36:44,680
Speaker 4: What makes ours unique as we tune it a little

736
00:36:44,680 --> 00:36:46,360
Speaker 4: bit so that, as I said, it's going to be

737
00:36:46,440 --> 00:36:49,080
Speaker 4: much more personal, much more convenient. We also weave it

738
00:36:49,120 --> 00:36:51,520
Speaker 4: into all the software you use, so whether it's Outlook,

739
00:36:51,719 --> 00:36:54,160
Speaker 4: and in particular on Windows, we announce a new class

740
00:36:54,160 --> 00:36:57,400
Speaker 4: of PCs we call Copilot plus PCs where it's the

741
00:36:57,440 --> 00:36:59,759
Speaker 4: most advanced AI on it, so you can do things

742
00:36:59,800 --> 00:37:02,640
Speaker 4: like now search your PC with Common Language, which seems

743
00:37:02,640 --> 00:37:03,240
Speaker 4: like you would assault.

744
00:37:03,360 --> 00:37:05,880
Speaker 5: The people are buying those PCs because of the AI

745
00:37:06,000 --> 00:37:06,839
Speaker 5: compact they are.

746
00:37:06,719 --> 00:37:09,359
Speaker 4: They're buying them because they're the fastest PCs out there.

747
00:37:09,400 --> 00:37:11,840
Speaker 4: Now we took the high ground back from a MacBook

748
00:37:12,120 --> 00:37:14,480
Speaker 4: and because of the most advanced AI, and what can

749
00:37:14,480 --> 00:37:16,640
Speaker 4: you do with that AI? Your photos can now go

750
00:37:16,680 --> 00:37:19,320
Speaker 4: to high res. You can search for anything on your device.

751
00:37:20,000 --> 00:37:22,240
Speaker 4: You can recall anything you've ever seen on the device,

752
00:37:22,280 --> 00:37:24,120
Speaker 4: which is a tough thing and a new feature day

753
00:37:24,280 --> 00:37:26,319
Speaker 4: we call click to do. If you see something like

754
00:37:26,320 --> 00:37:28,399
Speaker 4: even on a YouTube video, you can click and say,

755
00:37:28,400 --> 00:37:29,959
Speaker 4: tell me more about that. Maybe I want to buy

756
00:37:29,960 --> 00:37:31,840
Speaker 4: that these are really powerful features.

757
00:37:32,520 --> 00:37:33,600
Speaker 3: Sina just mentioned it.

758
00:37:33,920 --> 00:37:36,840
Speaker 5: She spoke to my staffas Silliman, relatively new at your organization,

759
00:37:37,000 --> 00:37:40,439
Speaker 5: AI CEO. How is that changing the way in which

760
00:37:40,520 --> 00:37:42,520
Speaker 5: Microsoft presents to the consumer.

761
00:37:42,880 --> 00:37:43,080
Speaker 14: Yeah.

762
00:37:43,120 --> 00:37:45,760
Speaker 4: One of the great things about Mustafa is he really

763
00:37:45,800 --> 00:37:49,920
Speaker 4: has this sort of deep history obviously with incredible expertise,

764
00:37:49,960 --> 00:37:52,839
Speaker 4: but also the consumer ethos, and so he's helping, you know,

765
00:37:52,920 --> 00:37:55,120
Speaker 4: change the company in terms of how we shape how

766
00:37:55,120 --> 00:37:58,000
Speaker 4: we build products even so that you really it's kind

767
00:37:58,000 --> 00:38:00,920
Speaker 4: of an interactive way that you products. They're not like

768
00:38:01,000 --> 00:38:03,000
Speaker 4: products we used to build in the past that were

769
00:38:03,040 --> 00:38:06,200
Speaker 4: like ones in zero's calculate this number. It's really how

770
00:38:06,239 --> 00:38:08,600
Speaker 4: do you know, engage with a consumer with an AI

771
00:38:09,040 --> 00:38:11,520
Speaker 4: where you can bring them out, you can prompt with questions,

772
00:38:11,520 --> 00:38:13,560
Speaker 4: you can guide, and we have to learn on that.

773
00:38:13,600 --> 00:38:15,040
Speaker 4: He's bringing that great expertise to.

774
00:38:15,040 --> 00:38:16,799
Speaker 3: The company and you've got to go and market it.

775
00:38:17,280 --> 00:38:18,040
Speaker 3: Thank you, Thank you.

776
00:38:18,239 --> 00:38:24,200
Speaker 5: Hetti, Executive vice president and Consumer Chief Marketing Officer at Microsoft.

777
00:38:29,640 --> 00:38:30,239
Speaker 3: Cerebras.

778
00:38:30,320 --> 00:38:33,200
Speaker 5: It's an AI startup taking on in video and as

779
00:38:33,239 --> 00:38:35,879
Speaker 5: file for an IPO an evaluations as high as eight

780
00:38:35,880 --> 00:38:38,600
Speaker 5: billion dollars, according to Bloomberg Estimates, we want to discuss

781
00:38:38,640 --> 00:38:41,399
Speaker 5: it all the Bloomberg's amy or what's interesting is the

782
00:38:41,400 --> 00:38:44,480
Speaker 5: financials they've disclosed. It's how dependent they are on one

783
00:38:44,520 --> 00:38:45,400
Speaker 5: particular customer.

784
00:38:45,760 --> 00:38:46,600
Speaker 3: Yeah, definitely.

785
00:38:46,920 --> 00:38:51,000
Speaker 15: So G forty two is an Arberdiveei company that owns

786
00:38:51,880 --> 00:38:54,880
Speaker 15: that has accounted for eighty seven percent, which is actually

787
00:38:55,520 --> 00:38:59,000
Speaker 15: four percentage points higher than last year. And it's interesting

788
00:38:59,040 --> 00:39:02,799
Speaker 15: to understand that G two is a company that is

789
00:39:02,840 --> 00:39:07,719
Speaker 15: closely watched by the Department of Security. So it's interesting

790
00:39:07,880 --> 00:39:12,440
Speaker 15: that it's not only about the company's the sales revenue,

791
00:39:12,440 --> 00:39:15,040
Speaker 15: but also it is also an investor in the company.

792
00:39:15,120 --> 00:39:20,040
Speaker 15: That that's why it's very watched. Whether investors will really

793
00:39:20,080 --> 00:39:23,279
Speaker 15: take that too hard is really to be seen.

794
00:39:23,800 --> 00:39:26,640
Speaker 5: Why go public when sales are currently only at one

795
00:39:26,719 --> 00:39:28,759
Speaker 5: hundred and thirty six million dollars, why not wait?

796
00:39:28,880 --> 00:39:29,800
Speaker 3: Be farp even further.

797
00:39:31,000 --> 00:39:34,040
Speaker 15: So, aichipmicking is at a very interesting point in time,

798
00:39:34,080 --> 00:39:36,640
Speaker 15: and it's actually burning a lot of cash, so it

799
00:39:36,719 --> 00:39:39,320
Speaker 15: needs a lot of money it's to actually put into

800
00:39:39,400 --> 00:39:44,200
Speaker 15: development at this point, so it's understandabable that it will

801
00:39:44,200 --> 00:39:46,760
Speaker 15: actually come for cash. Obviously, a lot of tech companies

802
00:39:46,800 --> 00:39:49,200
Speaker 15: want to actually make some kind of revenue be profitable

803
00:39:49,280 --> 00:39:52,880
Speaker 15: before coming. But the fact that this company's cerebras is

804
00:39:52,920 --> 00:39:56,319
Speaker 15: at the competing with a video which has actually had

805
00:39:56,360 --> 00:39:59,000
Speaker 15: a really great run, and even despite the August fifth

806
00:39:59,080 --> 00:40:01,880
Speaker 15: kind of pullback, it's come back up again. So the

807
00:40:01,960 --> 00:40:04,600
Speaker 15: valuation right now is actually pretty good and also is

808
00:40:04,920 --> 00:40:05,960
Speaker 15: what everyone.

809
00:40:05,640 --> 00:40:09,440
Speaker 3: Is looking for. Amyo, keep a cur sye on that IPA.

810
00:40:09,560 --> 00:40:12,239
Speaker 5: Meanwhile, let's check back on those public markets and as

811
00:40:12,239 --> 00:40:15,600
Speaker 5: that one hundred lower investors seeking out some safe havens

812
00:40:15,680 --> 00:40:17,640
Speaker 5: right now amid growing geopolitical.

813
00:40:17,160 --> 00:40:20,200
Speaker 3: Risks as well. Lee is here with us big tech.

814
00:40:20,000 --> 00:40:22,880
Speaker 5: Fools the hardest because they are the most valuable companies

815
00:40:22,920 --> 00:40:23,279
Speaker 5: out there.

816
00:40:23,320 --> 00:40:26,480
Speaker 16: It feels like definitely, And we also have company specific

817
00:40:26,480 --> 00:40:28,799
Speaker 16: news today from Apple to Nvidia. But S and P

818
00:40:29,160 --> 00:40:31,080
Speaker 16: five hundred is now done by more than one percent,

819
00:40:31,080 --> 00:40:33,400
Speaker 16: and that's that almost two percent, And treasuries across the

820
00:40:33,440 --> 00:40:36,279
Speaker 16: curb fell and tier point investors are flocking to safe

821
00:40:36,280 --> 00:40:38,960
Speaker 16: haven assets like gold bitcoin. I know this show loves

822
00:40:38,960 --> 00:40:41,319
Speaker 16: the bitcoin. It's also down and it's back below the

823
00:40:41,360 --> 00:40:44,040
Speaker 16: sixty one thousand level. We have gold climbing to twenty

824
00:40:44,080 --> 00:40:46,879
Speaker 16: six twenty six hundred, and a gage of the US

825
00:40:46,920 --> 00:40:49,200
Speaker 16: dollar strengthened so a lot of news really to their

826
00:40:49,239 --> 00:40:51,680
Speaker 16: jest here, and we also have earlier this morning a

827
00:40:51,719 --> 00:40:54,720
Speaker 16: mixed bag of economic data. We have usism price falling

828
00:40:54,719 --> 00:40:56,839
Speaker 16: by the most since May twenty twenty three, and that's

829
00:40:56,840 --> 00:40:59,879
Speaker 16: as US job openings throws in August, So those two

830
00:41:00,120 --> 00:41:01,920
Speaker 16: are kind of like odds with a lot of data

831
00:41:01,920 --> 00:41:03,359
Speaker 16: indicating that the demand.

832
00:41:03,040 --> 00:41:04,360
Speaker 3: For workers is slowing.

833
00:41:04,400 --> 00:41:06,279
Speaker 16: And on top of that, Caroline, we also have DOC

834
00:41:06,280 --> 00:41:10,240
Speaker 16: workers on strike affecting almost thirty six ports, So there's

835
00:41:10,280 --> 00:41:12,600
Speaker 16: really been a lot of swift in just one day.

836
00:41:12,840 --> 00:41:15,880
Speaker 16: Yesterday Monday, the SMP five hundred hit its forty third record,

837
00:41:15,920 --> 00:41:18,040
Speaker 16: and today you're seeing everything sinking.

838
00:41:18,160 --> 00:41:19,960
Speaker 3: So that is the context, right.

839
00:41:20,040 --> 00:41:21,800
Speaker 5: Yes, we've got Apple down more than three percent, and

840
00:41:21,800 --> 00:41:25,000
Speaker 5: there's some micro news around the iPhone sixteen concerns there,

841
00:41:25,280 --> 00:41:28,160
Speaker 5: but actually we're fooling only the most in September the sixth.

842
00:41:28,520 --> 00:41:30,200
Speaker 3: This is a key concern, a.

843
00:41:30,160 --> 00:41:33,200
Speaker 5: Potential imminent threat from Iran to Israel. But actually the

844
00:41:33,239 --> 00:41:35,640
Speaker 5: knee jeg reaction is relatively limited, would you.

845
00:41:35,640 --> 00:41:39,120
Speaker 16: Say, exactly, because these companies are so big, but also

846
00:41:39,280 --> 00:41:42,480
Speaker 16: the rally has been broadening, so they're not so much

847
00:41:42,520 --> 00:41:45,840
Speaker 16: as macro events anymore. In Video earnings, Apple earnings, or

848
00:41:45,840 --> 00:41:47,840
Speaker 16: even just corporate news, they're not as big of a

849
00:41:47,920 --> 00:41:50,960
Speaker 16: deal because the rally is broadening, a lot of these

850
00:41:51,000 --> 00:41:54,480
Speaker 16: docks are gaining more heft, and geopolitical conflicts and crises

851
00:41:54,480 --> 00:41:56,600
Speaker 16: are really just really center stage right now more than

852
00:41:56,640 --> 00:41:59,560
Speaker 16: big text, So for now they're away from the spotlight

853
00:41:59,600 --> 00:42:03,720
Speaker 16: and it's other issues now. Unfortunately, or and where people

854
00:42:03,760 --> 00:42:05,320
Speaker 16: buy defense stocks.

855
00:42:05,440 --> 00:42:08,560
Speaker 5: We talk a lot about AI and implications within defense,

856
00:42:08,640 --> 00:42:11,839
Speaker 5: but that does seem to be an area of equity outperformance.

857
00:42:11,320 --> 00:42:14,000
Speaker 16: On the day, and surprisingly defense stocks is outperforming, and

858
00:42:14,040 --> 00:42:17,600
Speaker 16: also other stocks related to AI, like industrials or energy,

859
00:42:17,719 --> 00:42:21,040
Speaker 16: so the ailes there is broadening to its other piers.

860
00:42:21,080 --> 00:42:23,319
Speaker 16: So it's really just not the only game in town.

861
00:42:23,360 --> 00:42:26,360
Speaker 16: But you're right, we're seeing that rally gains are broadening,

862
00:42:26,920 --> 00:42:28,560
Speaker 16: and we who knows how to day will end. This

863
00:42:28,680 --> 00:42:31,560
Speaker 16: is just one tweet that started out and then it's

864
00:42:31,680 --> 00:42:33,719
Speaker 16: just domino from there in video currenting off.

865
00:42:33,600 --> 00:42:34,520
Speaker 3: By three and a half percent.

866
00:42:34,560 --> 00:42:38,200
Speaker 5: Of course, with its ultimate Maco capitalization, that is a

867
00:42:38,280 --> 00:42:39,680
Speaker 5: huge move for the rest of the benchmark.

868
00:42:39,719 --> 00:42:40,719
Speaker 3: Bloombergs Isabel Lee.

869
00:42:41,000 --> 00:42:43,160
Speaker 5: We really appreciate the market wrap now that does it

870
00:42:43,160 --> 00:42:45,520
Speaker 5: for this edition of Bloomberg Technology. Do not forget to

871
00:42:45,600 --> 00:42:48,160
Speaker 5: check out our podcast. You can find it on the

872
00:42:48,239 --> 00:42:51,640
Speaker 5: terminal as well as online on Apple, Spotify, and iHeart

873
00:42:52,080 --> 00:43:00,320
Speaker 5: This is bloom Bag Technology