WEBVTT - Tesla's EVs and US Lawmakers Meet with Big Tech 0:00:01.480 --> 0:00:04.840 From the heart of We're Innovation, Money and Power Collie 0:00:05.040 --> 0:00:09.760 in Silicon Valley, NBR. This is Bloomberg Technology with Caroline 0:00:09.840 --> 0:00:26.720 Hide and Ed Ludlow. I'm Caroline Hide and Bloomberg's world 0:00:26.760 --> 0:00:29.520 headquarters in New York, and I'med Lovelow in San Francisco. 0:00:29.600 --> 0:00:32.840 This is Bloomberg Technology, back together and coming up. Full 0:00:32.880 --> 0:00:35.440 market coverage ahead. We're going to kick off the second 0:00:35.520 --> 0:00:38.200 quarter then USA one hundred. Is it a bill market? 0:00:38.280 --> 0:00:41.400 But will it stay Morgan Stanley, well, it thinks maybe 0:00:41.800 --> 0:00:45.080 you should be warning about this tech valley last Tesla. 0:00:45.159 --> 0:00:47.800 One name weighing on the market is Deliveries full short 0:00:47.840 --> 0:00:50.760 of Elon Musk's own expectations. Will bring you the details. 0:00:50.760 --> 0:00:52.959 And speaking of Mask, we'll get their latest on its 0:00:52.960 --> 0:00:55.080 spat with The New York Times as the newspaper loses 0:00:55.120 --> 0:00:58.760 it's verified badge on Twitter. That so much more coming up, 0:00:58.800 --> 0:01:01.240 But first, I mean we got to delve into the 0:01:01.280 --> 0:01:03.760 market moves. When it comes to the NASTAC one hundred. 0:01:03.800 --> 0:01:05.880 Of course, we're just saying soaring into a bullmark in 0:01:05.880 --> 0:01:09.880 the first quarter. But Morgan Stanley's Mike Wilson, he's been 0:01:09.920 --> 0:01:12.840 warning that the rally maybe is overdone. Let's bring in 0:01:13.560 --> 0:01:16.280 Isabel Lee just to talk about the technicals at play. 0:01:16.360 --> 0:01:20.319 Some of the reasoning behind Isabel the movement into big tech. 0:01:20.480 --> 0:01:22.760 It was almost like a search of safety right now, 0:01:23.240 --> 0:01:26.640 people particularly Morgan Stanley and also JP Morgan saying that 0:01:26.800 --> 0:01:29.560 might be time to pull back from that trade exactly. 0:01:29.560 --> 0:01:31.840 So Morgan Stanley said it's overdone. So last week the 0:01:31.880 --> 0:01:34.280 tech sector hit the bull market, which means it was 0:01:34.360 --> 0:01:36.640 up twenty percent from US in December lows. But for 0:01:36.880 --> 0:01:38.959 Mike Wilson that was just a bit too much, and 0:01:39.000 --> 0:01:41.160 he said it's just because people were treating it as 0:01:41.160 --> 0:01:44.399 a traditional defensive place amidst all the banking turmoil. But 0:01:44.440 --> 0:01:47.639 he still recommends safer areas like utilities like a zoomer 0:01:47.680 --> 0:01:50.880 sector because he also said that when something hits its trufugh, 0:01:51.240 --> 0:01:53.440 the likelihood is it'll just rally back up. So he 0:01:53.440 --> 0:01:56.440 said he would prefer to see more durable lows before 0:01:56.680 --> 0:01:59.720 investors piling aggressively, but for now it's kind of an 0:01:59.760 --> 0:02:02.559 over for him. Hey is about There's one thing, Karen, 0:02:02.600 --> 0:02:04.840 I've learned in recent weeks around the tech sector. It's 0:02:04.880 --> 0:02:07.760 one session a market does not make. But we're kind 0:02:07.760 --> 0:02:10.520 of looking at economic data again. Right, we're still going 0:02:10.560 --> 0:02:13.240 back to the same discussion around inflation and the FED. 0:02:14.040 --> 0:02:17.360 That's exactly right, which is why people are probably thinking that, Okay, 0:02:17.440 --> 0:02:20.000 you know, that's that's a risk. Assets are rallying because 0:02:20.040 --> 0:02:22.600 they're like, inflation is over. We'd probably not over, but 0:02:22.680 --> 0:02:25.760 we've hit the peak FED. We'll start cutting sometimes this year. 0:02:25.840 --> 0:02:28.760 People have various estimates, but it's kind of bullish overall, 0:02:28.800 --> 0:02:31.520 which is a risk. Assets are rallying now. Bitcoin is up, 0:02:31.560 --> 0:02:35.440 It's enjoyed its best quarter seventy two percent or seventy 0:02:35.480 --> 0:02:39.040 four percent in the past two years. All risk assets 0:02:39.080 --> 0:02:41.280 are really up and they're just really enjoying the bounce. 0:02:41.360 --> 0:02:43.760 And here's some good news for the bitcoin lovers. April 0:02:43.840 --> 0:02:47.320 is usually a good month for bitcoin, actually even for stocks, 0:02:47.320 --> 0:02:50.639 and by some measures, bitcoin was up in six out 0:02:50.639 --> 0:02:54.120 of the last ten years. Isabelle dig in here because 0:02:54.160 --> 0:02:58.160 you've been writing great stories together with Aldanna about well, 0:02:58.160 --> 0:02:59.959 the lack of liquidity and bitcoin, even though we see 0:03:00.000 --> 0:03:02.680 it's run up in price, Yes, and because there's lack 0:03:02.720 --> 0:03:05.840 of liquidity, then the prices are more pronto volatility because 0:03:05.919 --> 0:03:09.119 one big whale or one big move can just pull 0:03:09.200 --> 0:03:11.560 the price lower or higher, and that's kind of been 0:03:11.600 --> 0:03:14.680 the danger in this sector. But for now, especially with 0:03:14.720 --> 0:03:17.640 the banking termoil, people are celebrating it because this is 0:03:17.680 --> 0:03:22.600 why bitcoin was made. It's to circumvent all the intermediaries 0:03:22.639 --> 0:03:24.400 to just put their trust into the thing that they 0:03:24.440 --> 0:03:26.920 trust and not trust Wall Street. Bitcoin was born right 0:03:26.960 --> 0:03:29.560 after the GFC, when people were mad at banks, when 0:03:29.560 --> 0:03:32.320 people didn't trust anyone. So now it's kind of their 0:03:32.400 --> 0:03:35.320 victory lab but it still remains to be seen whether 0:03:35.360 --> 0:03:39.640 the banking turmoil actually push bitcoin higher. It's that's why 0:03:39.680 --> 0:03:42.000 I love carving the space. You'll never just know why. 0:03:42.400 --> 0:03:44.720 In particular, I'm gonna be delving into who else is 0:03:44.720 --> 0:03:47.120 winning amid the bank tim all and wow, we've got 0:03:47.120 --> 0:03:49.560 a VC name on talking that it's fintech in fact 0:03:49.560 --> 0:03:51.560 as well as welly, great to have you on all 0:03:51.640 --> 0:03:54.240 things risk assets. Let's stick with the markets though, because 0:03:54.280 --> 0:03:57.080 actually one risk asset monkey player in the technology space, Tesla, 0:03:57.400 --> 0:04:00.800 well it actually didn't perform particularly well in March. Today 0:04:00.840 --> 0:04:04.680 it's weighing on the broader indices once again, Led you 0:04:04.760 --> 0:04:06.960 are the first and foremost person I think of when 0:04:06.960 --> 0:04:09.160 I think of Tesla. Just dig in a little bit 0:04:09.240 --> 0:04:13.040 about why we're seeing Musk full shorten his delivery issues 0:04:13.080 --> 0:04:15.560 even though we see the price cuts coming. Yeah. Yeah, 0:04:15.640 --> 0:04:18.279 record deliveries in the first quarter of twenty twenty three, 0:04:18.400 --> 0:04:22.120 four hundred and twenty three thousand evs in the first 0:04:22.120 --> 0:04:24.200 three months of the year. It's a modest growth, right. 0:04:24.279 --> 0:04:26.120 You look at the end of twenty twenty two, four 0:04:26.200 --> 0:04:29.279 hundred and five thousand, it's about four percent sequentially quarter 0:04:29.400 --> 0:04:33.640 on quarter, above street expectations. But the bigger picture is 0:04:33.680 --> 0:04:35.920 that it does not put Tester on track for that 0:04:36.040 --> 0:04:38.800 fifty percent annual average growth rate that Elon Musk has 0:04:38.839 --> 0:04:41.520 talked about. It's not enough to show that demand is 0:04:41.560 --> 0:04:44.680 still there. There are still demand concerns for the street, right, 0:04:44.680 --> 0:04:47.760 And one point here is that Elon must talked in 0:04:47.800 --> 0:04:50.200 the first two weeks of January about demands running at 0:04:50.200 --> 0:04:52.799 twice the rate of production. You dig into the data 0:04:52.960 --> 0:04:55.159 kind of seems like demand might have tapered off towards 0:04:55.200 --> 0:04:57.600 the end of the quarter, even though the prices have 0:04:57.680 --> 0:05:00.799 been pulled back, even though we've got well then firing 0:05:00.800 --> 0:05:04.040 on all cylinders, which actually making the autos. What does 0:05:04.080 --> 0:05:08.159 a backlog of potential of cars sitting around me. Yeah, 0:05:08.279 --> 0:05:11.520 it's a profitability that's certainly the right days point. Look 0:05:11.520 --> 0:05:13.640 at the three orange bars four inche bars here, four 0:05:13.720 --> 0:05:17.279 straight quarter where production is greater than the number of 0:05:17.360 --> 0:05:20.840 vehicles that Tessa's delivered. One explanation from Tesla is they're 0:05:20.880 --> 0:05:23.760 still trying to get the mix of where these vehicles 0:05:23.760 --> 0:05:27.039 are produced more even which results in particularly the model 0:05:27.120 --> 0:05:29.440 Essent Model X being in transit at the end of 0:05:29.440 --> 0:05:32.400 the quarter. You can't consider those delivered vehicles because they're 0:05:32.400 --> 0:05:34.359 on the back of a truck. Essentially, it was the 0:05:34.400 --> 0:05:36.520 lowest delivery level for S and X in that quarter 0:05:36.680 --> 0:05:38.760 just gone going back to the third quarter of twenty 0:05:38.839 --> 0:05:42.160 twenty one, So something's not quite working there. What analysts 0:05:42.200 --> 0:05:45.120 are saying is we're worried that actually there is still 0:05:45.200 --> 0:05:48.320 demand issue here. Remember Elon Musk has pledged that if 0:05:48.320 --> 0:05:51.159 there is a deep recession this year, Tessa's happy to 0:05:51.240 --> 0:05:55.200 sacrifice profit margin because they've got that strong balance sheet 0:05:55.320 --> 0:05:57.359 and they want to keep up that steady rate of growth. 0:05:57.400 --> 0:05:59.960 It's just that we're not seeing that steady rate of growth, 0:06:00.320 --> 0:06:04.279 and many still worry maybe in some part that he's distracted, right, 0:06:04.400 --> 0:06:07.240 he's distracted with the other key company that's under his 0:06:07.680 --> 0:06:11.000 overview is Twitter, and we know that at the moment 0:06:11.200 --> 0:06:14.400 he's in particular spot with New York Times resulted in 0:06:14.440 --> 0:06:17.479 the paper losing its verified badge over its refusal to 0:06:17.560 --> 0:06:21.240 pay for that one important checkmark, joining us now Bloomberg's 0:06:21.279 --> 0:06:24.799 Asia accounts. Just how important is that checkmark for something 0:06:25.040 --> 0:06:29.000 like New York Times the yellow badge. It's critical for 0:06:29.080 --> 0:06:31.240 an organization like The New York Times to have that 0:06:31.320 --> 0:06:34.240 badge because it verifies that they are, in fact a 0:06:34.279 --> 0:06:37.400 news institution. You can imagine the challenges that could arise 0:06:37.600 --> 0:06:40.200 if another account were to impersonate the New York Times 0:06:40.400 --> 0:06:43.480 and start spreading false news or misinformation. So it's really 0:06:43.520 --> 0:06:45.680 critical that they have that checkmark. I think we point 0:06:45.680 --> 0:06:48.359 out Caroline right that Bloomberg News has said that it 0:06:48.400 --> 0:06:54.000 won't reimburse staff to get their own Twitter Blue method 0:06:54.000 --> 0:06:57.240 of verification. Bloomberg News and its various newsroom accounts does 0:06:57.279 --> 0:07:00.880 have verification. What's really difficult understand is if you go 0:07:00.920 --> 0:07:03.000 on someone's profile and hover over the blue check mark, 0:07:03.640 --> 0:07:07.560 it's either a Twitter Blue account or it's a legacy 0:07:07.640 --> 0:07:09.920 verified account that may or may not be notable. They 0:07:09.960 --> 0:07:12.080 haven't taken the action that they said they would no, 0:07:12.240 --> 0:07:14.160 and that's actually a change. Right if you were to 0:07:14.240 --> 0:07:16.160 look a week ago, when you would hover over the badge, 0:07:16.160 --> 0:07:18.880 you could see very clearly this person paid for Twitter 0:07:18.880 --> 0:07:23.200 Blue or this person was a legacy verified institution or individual. 0:07:23.440 --> 0:07:26.720 So it's actually created more confusion and we really don't know. 0:07:26.840 --> 0:07:29.440 And they haven't taken away some of those like checkmarks 0:07:29.440 --> 0:07:31.920 that they said they were Unapril first. They've taken away some, 0:07:32.040 --> 0:07:34.040 but some are still out there, Kara. One thing we 0:07:34.080 --> 0:07:36.720 discussed with Elisha on Friday was the idea that also 0:07:36.760 --> 0:07:39.800 advertisers are kind of not very convinced by Musk. They've 0:07:39.880 --> 0:07:44.040 kind of fled the platform. Where does this platform stand 0:07:44.040 --> 0:07:45.920 in terms of its health because you have Elon Musk 0:07:46.000 --> 0:07:48.320 on the other hand saying we're at record levels of 0:07:48.440 --> 0:07:51.240 use right in terms of using numbers, Yeah, that's what's 0:07:51.240 --> 0:07:54.360 been really interesting. They do have more daily users since 0:07:54.480 --> 0:07:57.160 according to Musk's numbers, since the last time he released them, 0:07:57.400 --> 0:07:59.960 but you're losing advertisers and that was about eighty nine 0:08:00.000 --> 0:08:02.760 percent of revenue, and so Twitter Blue is seen as 0:08:02.760 --> 0:08:04.720 a way to make back some of that revenue. But 0:08:05.040 --> 0:08:07.440 their subscriber numbers are also really low. It's less than 0:08:07.480 --> 0:08:09.920 one percent I think according to the last numbers. So 0:08:10.160 --> 0:08:12.760 it's Twitter is in a really challenging position right now 0:08:12.760 --> 0:08:15.120 and they have to either convince people to subscribe or 0:08:15.200 --> 0:08:17.120 they're going to have to woo back those advertisers, and 0:08:17.160 --> 0:08:19.440 neither one of those has really been going well. Do 0:08:19.480 --> 0:08:22.840 we know any updated numbers on subscribers. I mean, this 0:08:22.920 --> 0:08:25.000 is the joy of it being a privately held business, 0:08:25.080 --> 0:08:27.640 But do we know if eventually people will be pushed 0:08:27.640 --> 0:08:30.760 to make that payment. You know, analysts I've talked to 0:08:30.760 --> 0:08:32.719 you and people in industry don't think that it will 0:08:32.760 --> 0:08:35.960 really push the needle. We don't really know the latest numbers. Again, 0:08:35.960 --> 0:08:37.960 it is a private company, so it's hard to tell. 0:08:38.120 --> 0:08:41.480 There's some independent researchers that are tracking it, but from 0:08:41.520 --> 0:08:43.600 what we know, it's less than three hundred thousand people. 0:08:44.160 --> 0:08:46.000 We want to thank you staying on top of all 0:08:46.040 --> 0:08:47.839 things social and I accounts. Great to have you one 0:08:47.920 --> 0:08:51.160 once again. Meanwhile, let's talk about another form of social communication. 0:08:51.200 --> 0:08:54.720 Former President Donald Trump said on truth Social a post 0:08:54.800 --> 0:08:57.160 that he plans to leave mar Alago at noon today 0:08:57.240 --> 0:09:00.720 to fly to New York ahead of his historic arraignment Inhattan. Courtroom. 0:09:00.760 --> 0:09:03.920 That's tomorrow. Make Simone, Foxman is outside of the court house, 0:09:03.960 --> 0:09:05.800 and Simone, do we know if in that fact he 0:09:05.920 --> 0:09:10.400 is on route. As of yet, we haven't seen any 0:09:10.480 --> 0:09:13.079 reports from the pool that he has actually moved out 0:09:13.160 --> 0:09:16.080 of Marrow Lago, but we do expect him to fly 0:09:16.200 --> 0:09:19.560 to New York later today and then come here to 0:09:19.679 --> 0:09:22.640 Trump Tower behind me, and this is really where some 0:09:22.679 --> 0:09:26.240 of the political theatrics could kick off. You may be 0:09:26.320 --> 0:09:30.120 able to see there are some banners behind me. We've 0:09:30.120 --> 0:09:32.760 seen in the last couple of minutes some Trump supporters 0:09:32.800 --> 0:09:35.600 walking with banners and kind of lining up over there, 0:09:35.640 --> 0:09:38.920 but there are barricades all around us. Then, of course, 0:09:39.280 --> 0:09:42.360 the big event is when he goes south to the 0:09:42.559 --> 0:09:48.400 DA's office to the courthouse to be arraigned, expected tomorrow afternoon. Simone, 0:09:48.480 --> 0:09:51.120 as you say, now, moved across to Trump Tower and 0:09:51.160 --> 0:09:55.040 looks busy. It looks like people embracing themselves. And this 0:09:55.120 --> 0:09:57.480 is something that you've continued to report on throughout the show. 0:09:57.559 --> 0:09:59.679 It does become a technology story in many ways, just 0:09:59.760 --> 0:10:02.760 the in which news is consume nowadays, well very much 0:10:03.000 --> 0:10:05.040 because you look at the stock reaction in those sort 0:10:05.080 --> 0:10:08.280 of conservative social media platforms. They will rose Friday. I 0:10:08.320 --> 0:10:10.320 think some of the games being given up. Now, what 0:10:10.360 --> 0:10:13.360 we were discussing is that Trump is using true socials 0:10:13.440 --> 0:10:15.960 communicate in real time. The rest of the world is 0:10:15.960 --> 0:10:19.600 discussing this Simon on Twitter. Go back to the basis 0:10:19.640 --> 0:10:22.080 for what's to come. His lawyer was pretty clear he 0:10:22.160 --> 0:10:28.120 will hand himself in essentially, and what process happens after that. Yeah, 0:10:28.160 --> 0:10:32.440 so essentially we're expecting him to go to the Supreme 0:10:32.480 --> 0:10:36.599 Court House downtown. There. We don't know actually whether or 0:10:36.640 --> 0:10:38.679 not he will walk in the front door, whether he's 0:10:38.679 --> 0:10:41.400 going to try and stage some sort of perp walk 0:10:41.440 --> 0:10:45.080 that he could use again for those fundraising efforts to 0:10:45.080 --> 0:10:46.959 try and paint himself as a victim. But he will 0:10:47.040 --> 0:10:51.160 go in there, we'll get fingerprinted, He'll likely have to 0:10:51.160 --> 0:10:53.480 take some sort of mugshot photo, and then he'll go 0:10:53.559 --> 0:10:57.320 upstairs where this arrangement will take place. After that, he 0:10:57.360 --> 0:11:01.000 intends to leave New York City pretty quickly though, fly 0:11:01.120 --> 0:11:04.400 back tomorrow lago, and then there will be a press 0:11:04.440 --> 0:11:07.720 conference tomorrow evening, and of course at that time we'll 0:11:07.760 --> 0:11:10.760 actually know what these charges are. They remain under seal, 0:11:11.080 --> 0:11:15.680 and surely thereafter we will get Donald Trump's response, we 0:11:15.760 --> 0:11:19.560 will cover every development here on Bloomberg Television, Bloomberg's own Foxman, 0:11:19.640 --> 0:11:29.839 thank you. Out in the field reporting M and A 0:11:29.960 --> 0:11:33.560 Monday shares a WWE sliding after Endeavor agreed to buy 0:11:33.600 --> 0:11:35.440 the company from nine point three billion dollars if that's 0:11:35.480 --> 0:11:39.880 including debt. WWE will combine with Endeava's Ultimate Fighting Championship 0:11:40.120 --> 0:11:41.880 to form a new company that's going to be listed 0:11:41.880 --> 0:11:44.240 on the New York Stock Exchange, joining US. Now for 0:11:44.360 --> 0:11:46.959 more Spoomberg's Lucas Shaw, who, unfortunately for him, had a 0:11:47.000 --> 0:11:50.760 busy weekend. I'm sure Lucas for the scoopman Ari Emmanuel 0:11:50.880 --> 0:11:53.480 of Endeavor saying they will create a global life sports 0:11:53.480 --> 0:11:56.559 and entertainment peel Play built where the industry is headed. 0:11:56.600 --> 0:12:01.120 Where's it's headed? Well, look, they have the biggest mixed 0:12:01.120 --> 0:12:04.120 martial arts league in the world in the Ultimate Fighting Championship, 0:12:04.160 --> 0:12:07.320 and they now have WWE, which, while not technically a sport, 0:12:07.360 --> 0:12:10.360 you know, it's scripted entertainment. It performs much in the 0:12:10.400 --> 0:12:13.600 same way from a media perspective because people do show 0:12:13.679 --> 0:12:15.720 up to watch it live, and then the ways it 0:12:15.720 --> 0:12:18.120 makes money are very similar to UFC. You know, you 0:12:18.120 --> 0:12:20.319 think about it. In UFC makes money from media deals, 0:12:20.320 --> 0:12:22.079 it makes money from ticket sales, and it makes money 0:12:22.120 --> 0:12:25.040 from sponsorships. WWE is the exact same way, and I 0:12:25.040 --> 0:12:27.560 think they see an opportunity to sort of leverage that 0:12:27.760 --> 0:12:32.320 combine scale in negotiations with sponsorships, certainly, and then to 0:12:32.360 --> 0:12:35.760 find efficiencies and things like staging the events. I think 0:12:35.800 --> 0:12:38.240 when you think about the media landscape, Lucas, you know, 0:12:38.280 --> 0:12:42.040 many of the broadcast networks fight over being able to 0:12:42.040 --> 0:12:44.839 show WWE. Do we have any sense of how things 0:12:44.920 --> 0:12:47.880 now change, how they expand the offering, how they make 0:12:47.920 --> 0:12:52.040 it more digital. You know, it's too soon to know that, 0:12:52.240 --> 0:12:54.800 But if you look back in time, there was a 0:12:54.840 --> 0:12:58.520 point where the WWE created its own streaming service and 0:12:58.600 --> 0:13:01.240 then after a couple of years, decided that that wasn't 0:13:01.240 --> 0:13:03.600 the best idea and was better to just distribute it 0:13:03.800 --> 0:13:06.640 via the major players. So it has deals on linear 0:13:06.679 --> 0:13:09.440 TV with the USA Network and Fox, and then it 0:13:09.480 --> 0:13:12.679 has a streaming deal with Peacock. The TV deals are 0:13:12.760 --> 0:13:16.000 coming up, the negotiations or we're actually supposed to start 0:13:16.080 --> 0:13:20.000 kind of this past weekend with WrestleMania. I imagine that 0:13:20.040 --> 0:13:22.800 now the endeavor folks will have a lot of thoughts 0:13:22.800 --> 0:13:24.760 on what that should do. But if you look in 0:13:25.280 --> 0:13:27.760 kind of Ri Emmanuel's track record and Mark Shapiro, who's 0:13:27.760 --> 0:13:29.840 the president of Endeavor, you know, one of the ways 0:13:29.840 --> 0:13:32.280 they built USC into a huge business because there were 0:13:32.320 --> 0:13:35.000 doubts people thought that maybe they had overpaid for UFC. 0:13:35.440 --> 0:13:39.120 Was they struct these huge deals with ESPN, And I 0:13:39.120 --> 0:13:41.840 think they'll be able to do something similar with WWE, 0:13:41.840 --> 0:13:43.880 depending on who the partner is. When I talk about 0:13:43.880 --> 0:13:46.720 the owner of ESPN, because it's an all important annual 0:13:46.720 --> 0:13:51.760 general meeting about to be upon us Lucas. Yeah. You know, look, 0:13:52.080 --> 0:13:55.400 Disney is going through a very strange moment right now, 0:13:55.600 --> 0:13:59.359 or perhaps an unsettling moment for investors and for employees. 0:14:00.000 --> 0:14:01.880 You know, they're in the midst of laying off about 0:14:01.920 --> 0:14:04.280 seven thousand employees. They did sort of one round of 0:14:04.320 --> 0:14:06.400 that in the past couple of weeks, with much bigger 0:14:06.440 --> 0:14:09.640 rounds to come. And then you know, current CEO Bob 0:14:09.760 --> 0:14:13.280 Iger is both trying to restructure the company and restore 0:14:13.400 --> 0:14:16.160 faith in it after some of the damage done by 0:14:16.200 --> 0:14:19.320 his predecessor, Bob Chapeck, while simultaneously thinking about who his 0:14:19.400 --> 0:14:23.800 successor should be. All Right, Bloomberg's Lucas Shure, who leads 0:14:24.040 --> 0:14:27.240 our streaming screen time coverage. Thank you. Now, coming up 0:14:27.280 --> 0:14:30.120 from byte Dance to Micron, Apple and beyond, we'll bring 0:14:30.120 --> 0:14:32.920 you the headlines that you need to know in talking tech. 0:14:33.080 --> 0:14:36.080 Speaking of take a look at shares of Micron. What 0:14:36.080 --> 0:14:39.000 we've seen Caro in the last four sessions or so 0:14:39.200 --> 0:14:43.280 is retaliation from China in terms of pushing back on 0:14:43.360 --> 0:14:46.520 technology restrictions, a sort of tip attack. What the United 0:14:46.560 --> 0:14:50.360 States is doing. Micron lower by one and a half percent. 0:14:50.400 --> 0:15:10.360 This is Bloomberg time for talking tech, Starting with Apple 0:15:10.600 --> 0:15:14.080 basing a billion dollar trial over its Apple Watch secrets 0:15:14.120 --> 0:15:17.280 medical devices make a Massimo is taking the case before 0:15:17.320 --> 0:15:20.480 a federal jury in California this week after claiming Apple 0:15:20.560 --> 0:15:24.880 used confidential information from two former executives it hired in 0:15:24.960 --> 0:15:27.920 certain functions and designs of its flagship Apple Watch. We 0:15:27.960 --> 0:15:31.480 will track that trial. Revenue of TikTok's parent company, Bite 0:15:31.560 --> 0:15:35.120 Dance surge more than thirty percent to surpass eighty billion 0:15:35.240 --> 0:15:37.880 US dollars in twenty twenty two. That matches the tally 0:15:38.120 --> 0:15:41.800 at arch rival ten Cent and surpasses many internet firms. 0:15:41.840 --> 0:15:45.360 That pace of expansion underscores the resilience of Bite Dance 0:15:45.520 --> 0:15:48.080 this business, even at a time when Washington's threatened to 0:15:48.200 --> 0:15:52.320 join India in banning TikTok and Beijing launching a probe 0:15:52.320 --> 0:15:55.720 into Micron, opening a new front in Beijing's chip war 0:15:56.000 --> 0:15:58.800 with the US and Chinese chip related stocks really advancing 0:15:58.960 --> 0:16:02.080 amid optimism that they will benefit from the nation's growing 0:16:02.360 --> 0:16:05.600 self reliance and it's push after Beijing launched that probe 0:16:05.800 --> 0:16:10.040 into Micron technology, Caroline well from China to the Bay 0:16:10.080 --> 0:16:11.840 Area because we want to dig in a little bit 0:16:11.880 --> 0:16:15.320 more and where you are currently well residing in because 0:16:15.360 --> 0:16:18.000 it's been hit hard. We know San Francisco by the pandemic. 0:16:18.080 --> 0:16:20.200 It's had a half time coming back as tech workers 0:16:20.320 --> 0:16:22.800 just kept working from home. They left many of the 0:16:22.840 --> 0:16:25.520 downtown perhaps emptier than many would have liked. And now 0:16:26.000 --> 0:16:28.440 that old school bang run that turned the tech hub 0:16:28.520 --> 0:16:31.640 into the center of the financial termil has just of 0:16:31.680 --> 0:16:35.280 course still hit a city when it's down. Bloomberg San 0:16:35.320 --> 0:16:38.800 Francisco Bureau chief Karen Breslau is with us for more 0:16:38.920 --> 0:16:41.480 on what does this mean for San Francisco's future. You've 0:16:41.480 --> 0:16:44.240 got a beautifully written, really thought provoking peace on the 0:16:44.320 --> 0:16:48.280 terminal today. Thank you, Caroline. I think the storms that 0:16:48.320 --> 0:16:51.880 have pounded the city NonStop since January really are a 0:16:51.920 --> 0:16:55.480 metaphor for the storm of bad news that just has 0:16:55.560 --> 0:16:58.000 hit this city over and over. I mean talked about 0:16:58.840 --> 0:17:01.760 the you know, the bus hitting the city. Obviously, the 0:17:01.760 --> 0:17:05.600 tech downturn was one thing, but then we had SVB 0:17:06.119 --> 0:17:10.000 and the shakiness and the banking sector. We have the 0:17:10.040 --> 0:17:16.399 affordability crisis, a public safety crisis and it is and 0:17:16.480 --> 0:17:19.119 the fact that this is a city where, you know, 0:17:19.160 --> 0:17:22.000 return to office rates are the lowest in the United States. 0:17:22.040 --> 0:17:24.520 So it's just all hit the city at once. It's 0:17:24.560 --> 0:17:27.200 a triple whammy. We're looking at live pictures facing down 0:17:27.200 --> 0:17:31.800 the embarked arrow towards downtown. Two key data points, occupancy 0:17:32.160 --> 0:17:34.840 and unemployment. What have you learned in our report take, Well, 0:17:34.840 --> 0:17:37.760 there's a paradox there. Occupancy is a is a really 0:17:37.920 --> 0:17:41.640 shocking twenty nine point seven percent, the highest anywhere, right, 0:17:41.680 --> 0:17:44.040 twenty nine point seven percent of those buildings, nearly a 0:17:44.119 --> 0:17:47.919 third are empty, and yet the unemployment rate in the 0:17:47.960 --> 0:17:51.959 city is two point eight percent. So that is the 0:17:51.960 --> 0:17:55.119 paradox of San Francisco. That you have so much innovation 0:17:55.280 --> 0:18:00.280 self employment startups, and those typically are not company in 0:18:00.280 --> 0:18:03.160 those early stages that need these giant officers. I've called 0:18:03.200 --> 0:18:06.160 this city home for five years now, Caroline has lived 0:18:06.160 --> 0:18:09.760 in this city. We ask ourselves the same questions, one 0:18:09.840 --> 0:18:12.000 crisis at a different time. You spoke to the mayor, 0:18:12.680 --> 0:18:14.840 what's her proposal to fix all of this in the 0:18:14.880 --> 0:18:17.400 long term health? Well, her proposal, I mean she heard 0:18:17.480 --> 0:18:20.040 her job is to be the cheerleader, and I thought 0:18:20.080 --> 0:18:22.680 she she she gave a you know, a noble effort. 0:18:23.600 --> 0:18:28.080 What she has talked about relentlessly is diversification. She has 0:18:28.200 --> 0:18:33.040 always argued that this overreliance on the tech sector is 0:18:33.119 --> 0:18:35.680 dangerous for San Francisco's economy. Of course she's right, She's 0:18:35.680 --> 0:18:39.120 not the first person to have that observation, But she 0:18:39.760 --> 0:18:46.280 wants to attract bioscience, life science. Tourism converts some of 0:18:46.280 --> 0:18:51.240 these empty towers into housing, which would you know, basically 0:18:51.560 --> 0:18:54.679 deal with two crises at once, yet is incredibly expensive 0:18:55.280 --> 0:18:59.520 and doesn't always pencil out, so um, you know in 0:18:59.640 --> 0:19:01.600 lord tourists. So all of that is going to take 0:19:01.640 --> 0:19:03.560 a clean up and a perception that this is a 0:19:03.600 --> 0:19:07.280 safe and beautiful city, and it certainly is beautiful can't 0:19:07.320 --> 0:19:09.760 argue with that. It is it's going to take a 0:19:09.760 --> 0:19:13.119 big marketing campaign to remind everyone of that. And the 0:19:13.160 --> 0:19:16.840 tourists are back, ye coming, and it feels like and 0:19:16.920 --> 0:19:19.159 that's what's sort of Also the juxtaposition here is that 0:19:19.200 --> 0:19:21.440 when you're in some of the areas that tourists are busy, 0:19:21.480 --> 0:19:24.159 it feels thriving, the restaurants are busy and humming. But 0:19:24.200 --> 0:19:27.160 then you go to downtown and does feel emptier? Will 0:19:27.480 --> 0:19:30.480 somehow the neighborhoods are hopping, well, will they feel even 0:19:30.480 --> 0:19:33.320 emptier if you're getting meta againting some of the key 0:19:33.440 --> 0:19:37.560 tech companies doing layoffs as well. I think it is 0:19:37.600 --> 0:19:40.040 so empty right now, it's hard to imagine, you know, 0:19:40.119 --> 0:19:45.479 another few thousand missing from downtown. And those employees are 0:19:45.480 --> 0:19:47.679 also distributed, some of them in San Francisco, some of 0:19:47.720 --> 0:19:50.639 them are at the company's headquarters south of here in 0:19:50.680 --> 0:19:54.960 San Mateo County. But I think what has to happen is, 0:19:55.600 --> 0:19:58.679 you know, pretty soon as the prices plummet right for 0:19:58.720 --> 0:20:01.719 this commercial will estate, there will be a value proposition 0:20:01.880 --> 0:20:05.199 and somebody, you know, some companies will move in the 0:20:05.280 --> 0:20:08.119 neighborhoods are hopping. We talk about that in the story, 0:20:08.880 --> 0:20:12.119 particularly around Hayes Valley, which is now AI Valley or 0:20:12.320 --> 0:20:16.159 Cerebral Valley pick the brain part. Yeah, but there is action, 0:20:16.280 --> 0:20:19.680 as Karen Bresler, who leads our coverage to California, thank 0:20:19.720 --> 0:20:22.240 you know, coming up all things AI experts calling for 0:20:22.240 --> 0:20:25.439 a whole to next gen development. Europe growing more cautious. 0:20:25.480 --> 0:20:27.360 We're gonna have all the details. Were quite a big 0:20:27.440 --> 0:20:41.720 name in the sector, Caroline, this is Bloomberg. I really 0:20:41.720 --> 0:20:45.000 care about access and also a reinforcement of bias. But 0:20:45.320 --> 0:20:48.040 the thing to do is to address these concerns in 0:20:48.200 --> 0:20:51.399 like a open and transparent way, not to call for 0:20:51.440 --> 0:20:56.359 a hall to development. Welcome back to Boomberg Technology. I'm Caroline, 0:20:56.400 --> 0:20:59.399 had a Niel and I made Ludlow in San Francisco. 0:20:59.480 --> 0:21:02.440 That was Fiction founder Sarah Gaw. They're saying it's important 0:21:02.440 --> 0:21:06.239 to keep experimentation open and going in generative AI. Her 0:21:06.240 --> 0:21:10.120 comment comes after more than a thousand AI experts industry 0:21:10.160 --> 0:21:13.639 participants signed a petition calling for a temporary halt to 0:21:13.720 --> 0:21:17.920 developing the next generation of AI tools. One of them 0:21:18.080 --> 0:21:21.439 Kevin Barragoner, founder of the artificial intelligence text to image 0:21:21.440 --> 0:21:24.600 generator deep AI, who joins me on set in San Francisco. 0:21:25.400 --> 0:21:30.000 Why did you sign the petition? So the petition calls 0:21:30.200 --> 0:21:34.480 for a halt to the development of extremely large generative 0:21:34.520 --> 0:21:37.960 models like the GPD five that's in development, and this 0:21:40.160 --> 0:21:44.480 is an incredibly disruptive technology. We don't even really know 0:21:44.600 --> 0:21:46.800 what it will be capable of, but what we do 0:21:46.920 --> 0:21:52.879