1 00:00:01,560 --> 00:00:02,280 Speaker 1: From Mahard. 2 00:00:02,400 --> 00:00:06,840 Speaker 2: We're Innovation, Money and Power colle in Silicon Valley, NBN. 3 00:00:07,200 --> 00:00:11,240 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 4 00:00:24,680 --> 00:00:27,160 Speaker 3: I'm Caroline Heide and Bloomberg's world headquarters in New York, 5 00:00:27,520 --> 00:00:29,320 Speaker 3: and I'm Ed Ludlow in San Francisco. 6 00:00:29,560 --> 00:00:30,880 Speaker 4: This is Bloomberg Technology. 7 00:00:30,960 --> 00:00:31,360 Speaker 5: Coming up. 8 00:00:31,400 --> 00:00:33,560 Speaker 3: We'll take the pulse of the market and get a 9 00:00:33,600 --> 00:00:36,760 Speaker 3: read on appetite of those Magnificent seven as one name 10 00:00:36,920 --> 00:00:39,560 Speaker 3: struggles to keep up with the pack and. 11 00:00:39,600 --> 00:00:43,200 Speaker 6: Snap joining the courus of technology companies announcing job cuts 12 00:00:43,200 --> 00:00:46,760 Speaker 6: with plans to slash ten percent of its global workforce. 13 00:00:46,800 --> 00:00:47,720 Speaker 4: Details ahead us. 14 00:00:47,760 --> 00:00:48,960 Speaker 3: We'll get a check in on the state of the 15 00:00:48,960 --> 00:00:52,040 Speaker 3: semiconductor industry as global chip sales that protected to hit 16 00:00:52,080 --> 00:00:53,200 Speaker 3: a record this year. 17 00:00:53,440 --> 00:00:55,520 Speaker 5: The CEOs of on Semian Element. 18 00:00:55,280 --> 00:00:58,279 Speaker 3: Solutions join the program. But first let's check in on 19 00:00:58,360 --> 00:01:00,960 Speaker 3: these markets. And it's a day of mac affecting some 20 00:01:01,040 --> 00:01:03,280 Speaker 3: of the individual names. At the moment the market takes 21 00:01:03,280 --> 00:01:05,080 Speaker 3: a turner is once again we're running too hot. The 22 00:01:05,319 --> 00:01:08,320 Speaker 3: ICM number really coming in strong, Services going well and 23 00:01:08,400 --> 00:01:11,800 Speaker 3: indeed the cost of services employment as well. 24 00:01:11,840 --> 00:01:12,880 Speaker 5: What does this all mean. 25 00:01:12,760 --> 00:01:15,280 Speaker 3: In terms of overall inflatory pressure. We know that, of course, 26 00:01:15,560 --> 00:01:18,839 Speaker 3: joining CBS over the weekend was one FED chair Pale 27 00:01:18,880 --> 00:01:20,680 Speaker 3: and he was talking back against any sort of rake 28 00:01:20,680 --> 00:01:23,119 Speaker 3: cups coming as soon as March. Add in that job 29 00:01:23,160 --> 00:01:25,560 Speaker 3: to the overall strong economic data and we turn on 30 00:01:25,600 --> 00:01:28,880 Speaker 3: the nasdag off by eight ten percent. Interesting volatile play 31 00:01:29,000 --> 00:01:31,120 Speaker 3: going over in China. Remember as the SMP hit a 32 00:01:31,160 --> 00:01:33,800 Speaker 3: record on Friday, we actually saw a five year low 33 00:01:33,840 --> 00:01:35,920 Speaker 3: for Chinese stocks, and all of this as we see 34 00:01:35,959 --> 00:01:39,800 Speaker 3: once again China trying to curtail any selling coming and 35 00:01:39,880 --> 00:01:42,760 Speaker 3: indeed betting against the market over there and trying to 36 00:01:42,800 --> 00:01:44,800 Speaker 3: push back against that volatility. We're off about bout ten 37 00:01:44,840 --> 00:01:47,360 Speaker 3: percent in terms of the overall Chinese names traded here 38 00:01:47,360 --> 00:01:50,200 Speaker 3: in the US tenure yield it crushes ever higher up 39 00:01:50,280 --> 00:01:53,040 Speaker 3: fifteen basis points. This as we of course get that 40 00:01:53,080 --> 00:01:55,160 Speaker 3: strong economic data and the read across to the FED. 41 00:01:55,360 --> 00:01:56,560 Speaker 3: Move on and have a look at what's having in 42 00:01:56,560 --> 00:01:57,800 Speaker 3: the world of crypto though for a moment. 43 00:01:57,800 --> 00:01:59,680 Speaker 5: Ed because look, as we see a strong. 44 00:01:59,520 --> 00:02:01,880 Speaker 3: Dollar, so bitcwingo's a little bit lower, off by four 45 00:02:01,920 --> 00:02:04,160 Speaker 3: tenths of a percent, but still training about forty two 46 00:02:04,240 --> 00:02:06,920 Speaker 3: to thousand dollars. What have you got on the individual names. 47 00:02:07,560 --> 00:02:09,600 Speaker 6: Well, one name where there is still some buoyancy is 48 00:02:09,600 --> 00:02:12,880 Speaker 6: in video. Even when the market turned post im Video 49 00:02:12,919 --> 00:02:15,959 Speaker 6: is still up almost three percent and is extending those 50 00:02:16,040 --> 00:02:19,639 Speaker 6: record highs that it hit Goldman boosting this price target 51 00:02:19,639 --> 00:02:21,600 Speaker 6: on the stock to eight hundred dollars a share, And 52 00:02:21,600 --> 00:02:23,520 Speaker 6: they're basically saying, we look at what's to come in 53 00:02:23,520 --> 00:02:26,280 Speaker 6: the year, and we still think that there's going to 54 00:02:26,280 --> 00:02:28,840 Speaker 6: be spending by the hyperscalers and in the cloud context. 55 00:02:29,160 --> 00:02:32,720 Speaker 6: So that name continues to charge higher fresh record highs, 56 00:02:33,400 --> 00:02:35,519 Speaker 6: and it's just become this jugglele. We're going to dig 57 00:02:35,560 --> 00:02:37,400 Speaker 6: a bit deeper later in the show car of course, 58 00:02:37,440 --> 00:02:41,640 Speaker 6: about the outlook overall for this industry in twenty twenty four, 59 00:02:41,680 --> 00:02:44,760 Speaker 6: but AI still calls that story a moving to the 60 00:02:44,760 --> 00:02:45,480 Speaker 6: downside or. 61 00:02:45,480 --> 00:02:48,120 Speaker 4: In a different direction. Is snap, this is interesting. 62 00:02:48,160 --> 00:02:50,720 Speaker 6: The company is going to trim ten percent of its 63 00:02:50,760 --> 00:02:53,840 Speaker 6: global workforce. Later in the program, we'll speak to Bloomberg 64 00:02:53,880 --> 00:02:56,280 Speaker 6: Intelligence is mandep sing and kind of get engauge in 65 00:02:56,320 --> 00:02:58,880 Speaker 6: what's going on. When the headline's first cross, there was 66 00:02:58,960 --> 00:03:01,800 Speaker 6: kind of a spike on the shares in pre market, 67 00:03:01,800 --> 00:03:04,280 Speaker 6: but we are firmly lower now down three point nine percent. 68 00:03:04,720 --> 00:03:07,000 Speaker 3: Yeah, and that's notable, isn't it considering the read across 69 00:03:07,000 --> 00:03:09,640 Speaker 3: some Meta and just their phenomenal move we saw in 70 00:03:09,720 --> 00:03:12,200 Speaker 3: that company's shares after its earnings on Friday. 71 00:03:12,200 --> 00:03:13,680 Speaker 5: And let's just talk more broadly about. 72 00:03:13,520 --> 00:03:16,760 Speaker 3: What's happening with big tech with those magnificent seven names 73 00:03:16,960 --> 00:03:19,280 Speaker 3: and ultimately the read across some bond yields two tech 74 00:03:19,280 --> 00:03:20,880 Speaker 3: stocks bluemogs Isabel. 75 00:03:20,639 --> 00:03:23,079 Speaker 5: Lee is here with actually a great story talking. 76 00:03:23,120 --> 00:03:25,560 Speaker 3: I love the headline Elon just lost his cage fight 77 00:03:25,600 --> 00:03:29,120 Speaker 3: with Zuckerberg. This was all about how ultimately Tesla's market 78 00:03:29,120 --> 00:03:31,440 Speaker 3: cap has really diverged from that of say a Meta, 79 00:03:31,440 --> 00:03:33,040 Speaker 3: which has just been on the upper and not particularly 80 00:03:33,040 --> 00:03:36,880 Speaker 3: post its numbers. Friday, Tech managed to outperform despite bon 81 00:03:36,960 --> 00:03:38,360 Speaker 3: yields going high and not the same today. 82 00:03:38,840 --> 00:03:42,120 Speaker 7: It's not the same today, and then usualness must highlight it. Indeed, Friday, 83 00:03:42,120 --> 00:03:45,760 Speaker 7: because bond yields surge thanks to a strong bond jobs report, 84 00:03:46,040 --> 00:03:48,800 Speaker 7: what happened through tex sharees They areso surge And usually 85 00:03:48,800 --> 00:03:51,360 Speaker 7: this doesn't really go hand in hand because history would 86 00:03:51,360 --> 00:03:55,320 Speaker 7: tell us that higher long term yields aren't really the 87 00:03:55,480 --> 00:03:58,960 Speaker 7: particularly harmful to companies that are longer duration, which are 88 00:03:58,960 --> 00:04:01,920 Speaker 7: tech shares because they've most of their values they put 89 00:04:02,080 --> 00:04:04,640 Speaker 7: into the future. So usually when bond yield, search textures 90 00:04:04,640 --> 00:04:07,520 Speaker 7: are down basically, but we didn't see that on Friday 91 00:04:07,560 --> 00:04:09,119 Speaker 7: and in the past weeks. And this is why Bank 92 00:04:09,160 --> 00:04:12,040 Speaker 7: of America's Michael Hartnett is saying that this is reminiscent 93 00:04:12,360 --> 00:04:14,640 Speaker 7: to the dot com bubble, that he's seen the rush 94 00:04:14,640 --> 00:04:18,599 Speaker 7: into tech stocks, the irrational exuberance, and one can't really 95 00:04:18,920 --> 00:04:20,600 Speaker 7: make sense of it, like why is it like this? 96 00:04:21,279 --> 00:04:24,320 Speaker 7: On one hand, maybe because AI is just a contained 97 00:04:24,920 --> 00:04:27,799 Speaker 7: situation on its own, and maybe those tech stocks aren't 98 00:04:27,800 --> 00:04:30,520 Speaker 7: moving in conjunction with markets. But for the most part, 99 00:04:30,720 --> 00:04:32,479 Speaker 7: a lot of unusual things are happening. 100 00:04:33,279 --> 00:04:33,520 Speaker 4: You know. 101 00:04:33,880 --> 00:04:37,160 Speaker 6: The comparison that the article puts in front of us 102 00:04:37,240 --> 00:04:41,440 Speaker 6: is whether Tesla should be magnificent or if it's less 103 00:04:41,480 --> 00:04:46,440 Speaker 6: than magnificent. The number I look at is EPs growth, right, 104 00:04:46,480 --> 00:04:49,200 Speaker 6: because if you look at the six x Tesla, we 105 00:04:49,279 --> 00:04:51,760 Speaker 6: saw really big year on your EPs growth in Meta's case, 106 00:04:51,880 --> 00:04:54,600 Speaker 6: like more than two hundred percent. Tesla was the exception 107 00:04:54,720 --> 00:04:57,520 Speaker 6: to that rule. It's sort as EPs dropped forty percent 108 00:04:57,600 --> 00:05:00,719 Speaker 6: year on year. Both were having interests comps with an 109 00:05:00,800 --> 00:05:04,240 Speaker 6: interesting period twelve months ago. What is the case for 110 00:05:04,360 --> 00:05:08,880 Speaker 6: Tesla being not magnificent? To your mind as well. 111 00:05:08,120 --> 00:05:11,719 Speaker 7: There is a lot of case being Tesla not being magnificent, 112 00:05:11,760 --> 00:05:14,160 Speaker 7: But there is also a lot of cases about how 113 00:05:14,200 --> 00:05:17,360 Speaker 7: this whole sector should be even seen or group Magnificent 114 00:05:17,400 --> 00:05:19,800 Speaker 7: seven Super seven Elite seven, because if you look at it, 115 00:05:20,120 --> 00:05:23,840 Speaker 7: the magnificent Magnificent seven companies carry a thirty three percent 116 00:05:23,920 --> 00:05:27,520 Speaker 7: premium to the index when it comes to forward PE earnings, 117 00:05:27,520 --> 00:05:29,920 Speaker 7: But then should they even be looked at as Magnificent 118 00:05:29,960 --> 00:05:32,120 Speaker 7: seven as a whole? We know that last year this 119 00:05:32,400 --> 00:05:35,719 Speaker 7: Super seven Elite seven powered the NASSAC index fifty four 120 00:05:35,760 --> 00:05:39,120 Speaker 7: percent higher, and those gained some of them really trickled 121 00:05:39,160 --> 00:05:40,960 Speaker 7: into the new year. But last week we saw a 122 00:05:41,040 --> 00:05:45,200 Speaker 7: divergence when we have Meta and Amazon reported they really 123 00:05:45,240 --> 00:05:48,360 Speaker 7: had historic days. Meta saw one hundred and ninety billion 124 00:05:48,560 --> 00:05:50,920 Speaker 7: in one day, which is the most that we've seen 125 00:05:51,120 --> 00:05:54,240 Speaker 7: in the history of US doocs. But we have some 126 00:05:54,600 --> 00:05:58,080 Speaker 7: like Microsoft and Apple. Yes they beat mind you, but 127 00:05:58,120 --> 00:06:00,839 Speaker 7: then we saw Shar's fault because people were just really 128 00:06:01,000 --> 00:06:04,720 Speaker 7: more optimistic. People had more lofty ambitions for those AI shares. 129 00:06:04,800 --> 00:06:07,560 Speaker 7: So maybe people are now being more discerning. If you 130 00:06:07,600 --> 00:06:09,880 Speaker 7: look at Magnificent seven as a whole, they are big. 131 00:06:10,040 --> 00:06:12,320 Speaker 7: Here's around them Tied Bittory. It was in the article 132 00:06:12,480 --> 00:06:15,000 Speaker 7: the Magnificent Seven as a whole are worth more than 133 00:06:15,040 --> 00:06:21,960 Speaker 7: the copined combined GDP of New York, Tokyo, La, London, Paris, Soul, Chicago, 134 00:06:22,120 --> 00:06:24,040 Speaker 7: San Francisco, Osaka and Shanghai. 135 00:06:24,200 --> 00:06:25,640 Speaker 5: So they're really huge. 136 00:06:25,680 --> 00:06:28,000 Speaker 7: But then maybe we should stop seeing or looking at 137 00:06:28,040 --> 00:06:29,160 Speaker 7: them as one whole group. 138 00:06:29,200 --> 00:06:32,120 Speaker 6: Now ed, it's an interesting if you start thinking about 139 00:06:32,120 --> 00:06:35,640 Speaker 6: the words concentration and risk Bloombers Isabel Lee just fantastic 140 00:06:35,760 --> 00:06:36,640 Speaker 6: data analysis. 141 00:06:36,800 --> 00:06:37,080 Speaker 4: Thank you. 142 00:06:37,120 --> 00:06:40,000 Speaker 6: Let's keep the conversation going about the technology sector with 143 00:06:40,080 --> 00:06:43,159 Speaker 6: Lisa Ericson, head of Public Markets Group a US Bank 144 00:06:43,200 --> 00:06:46,000 Speaker 6: Wealth Management, and I think we also better address what's 145 00:06:46,040 --> 00:06:49,120 Speaker 6: happening in the moment. So when ism numbers hit the 146 00:06:49,200 --> 00:06:52,000 Speaker 6: market turned, we're now significantly lower on then as that 147 00:06:52,000 --> 00:06:54,400 Speaker 6: one hundred and about one percent. But if you drill 148 00:06:54,440 --> 00:06:58,039 Speaker 6: into the data, basically the concern is the price is 149 00:06:58,040 --> 00:07:01,040 Speaker 6: paid on materials and the idea that the FED still 150 00:07:01,040 --> 00:07:04,000 Speaker 6: has some way to go to fight inflation. Put that 151 00:07:04,080 --> 00:07:09,560 Speaker 6: into context for us of the technology sector, well, certainly. 152 00:07:09,200 --> 00:07:11,720 Speaker 8: We've had a couple of strong prints with the non 153 00:07:11,800 --> 00:07:14,920 Speaker 8: farm payrolls report on Friday and then again to your point, 154 00:07:15,000 --> 00:07:18,559 Speaker 8: a better than expected ism number this morning. And really, 155 00:07:18,560 --> 00:07:20,720 Speaker 8: I think what's going on with the market with respect 156 00:07:20,760 --> 00:07:24,960 Speaker 8: to how that impacts overall equity pricing and technology in particular, 157 00:07:25,600 --> 00:07:29,840 Speaker 8: is that investors are simply concerned again that these positive 158 00:07:29,920 --> 00:07:33,240 Speaker 8: rate cut expectations that they've had on the FED really 159 00:07:33,280 --> 00:07:36,400 Speaker 8: may need to be ratcheted down. We certainly saw that Friday, 160 00:07:36,480 --> 00:07:39,320 Speaker 8: we saw it again this morning, and investors are just 161 00:07:39,360 --> 00:07:42,640 Speaker 8: simply concerned that if rates don't come down as quickly 162 00:07:43,080 --> 00:07:46,360 Speaker 8: as they think they could again that could impact per 163 00:07:46,440 --> 00:07:50,920 Speaker 8: Isabel's point, really, these technology sector valuations because most of 164 00:07:50,960 --> 00:07:53,360 Speaker 8: their growth is further out in the future, and to 165 00:07:53,440 --> 00:07:56,680 Speaker 8: the extent that rates provide more competition, that just makes 166 00:07:56,680 --> 00:07:57,200 Speaker 8: it tougher. 167 00:07:57,640 --> 00:08:03,400 Speaker 3: Lisa was managed to ultimately send these companies higher. Has 168 00:08:03,400 --> 00:08:06,360 Speaker 3: been the distinguishing factor of artificial intelligence being able to 169 00:08:06,360 --> 00:08:09,320 Speaker 3: be that silver lining amid the cloud that is the macroeconomy, 170 00:08:09,400 --> 00:08:13,200 Speaker 3: higher rates, concerns about jobs. Can AI still manage to 171 00:08:13,240 --> 00:08:15,840 Speaker 3: lift these boats despite the valuations already being toppy. 172 00:08:17,400 --> 00:08:20,520 Speaker 8: We certainly see that long term case for AI. Obviously, 173 00:08:20,600 --> 00:08:23,360 Speaker 8: we're very early in the cycle, and we are seeing, 174 00:08:23,400 --> 00:08:26,520 Speaker 8: for example, even in the near term that continuing to 175 00:08:26,640 --> 00:08:30,239 Speaker 8: bolster some of these earnings reports, whether it's on data 176 00:08:30,680 --> 00:08:35,600 Speaker 8: center spending or whether it's on a continued investment into 177 00:08:35,679 --> 00:08:40,480 Speaker 8: cloud services. However, to your point, that doesn't necessarily mean 178 00:08:40,520 --> 00:08:43,560 Speaker 8: that the road is going to be smooth going into 179 00:08:43,600 --> 00:08:46,400 Speaker 8: the full year, and that is because we have had 180 00:08:46,480 --> 00:08:48,440 Speaker 8: quite a bit of run up on that AI and 181 00:08:48,480 --> 00:08:51,319 Speaker 8: so I think some of that uneven response that you've 182 00:08:51,320 --> 00:08:54,600 Speaker 8: seen to the earnings reports here with the fourth quarter 183 00:08:54,720 --> 00:08:57,360 Speaker 8: reports is reflective of the fact that some of that 184 00:08:57,440 --> 00:08:59,960 Speaker 8: optimism has already been priced into the ship. 185 00:09:01,160 --> 00:09:04,440 Speaker 3: The context also being that these companies are winning the 186 00:09:04,520 --> 00:09:07,280 Speaker 3: rewards of investors, particularly if we take like a matter 187 00:09:07,760 --> 00:09:10,120 Speaker 3: because of the cost discipline at the same time as 188 00:09:10,120 --> 00:09:12,760 Speaker 3: they've been talking up their AI bets. And when you 189 00:09:12,920 --> 00:09:15,520 Speaker 3: look at Snap today at more job cuts to come, 190 00:09:15,800 --> 00:09:18,640 Speaker 3: how much do you think the overall microeconomy can continue 191 00:09:18,679 --> 00:09:21,280 Speaker 3: to see strong jobs where we do see companies taking 192 00:09:21,280 --> 00:09:22,560 Speaker 3: this sort of disciplinary action. 193 00:09:24,200 --> 00:09:27,280 Speaker 8: Well, certainly we have seen a very strong jobs market, 194 00:09:27,320 --> 00:09:29,120 Speaker 8: and there were a number of prints last week that 195 00:09:29,200 --> 00:09:32,000 Speaker 8: really reinforced that message. Whether it was from the Non 196 00:09:32,040 --> 00:09:36,240 Speaker 8: farm Payrolls Report or the JOLTS or the Employment Cost Index. 197 00:09:36,960 --> 00:09:40,040 Speaker 8: As far as its ability to sustain, one really interesting 198 00:09:40,160 --> 00:09:44,360 Speaker 8: fact is that many of those job gains are and 199 00:09:44,440 --> 00:09:47,679 Speaker 8: openings continue to remain in companies with less than a 200 00:09:47,760 --> 00:09:52,040 Speaker 8: thousand employees, so those mid and smaller sized companies. And 201 00:09:52,080 --> 00:09:55,120 Speaker 8: again we saw that reinforced in the jolt's data last week. 202 00:09:55,520 --> 00:09:57,960 Speaker 8: And so with that, even though we may be seeing 203 00:09:58,160 --> 00:10:01,720 Speaker 8: some layoff notices from those large your companies, the ability 204 00:10:01,800 --> 00:10:04,840 Speaker 8: of the smaller end of the companies to continue to 205 00:10:05,080 --> 00:10:07,920 Speaker 8: post job gains as they continue to make up for 206 00:10:08,520 --> 00:10:10,280 Speaker 8: less hiring than they would have liked you in the 207 00:10:10,360 --> 00:10:12,440 Speaker 8: last couple of years, is still possibility. 208 00:10:13,880 --> 00:10:18,440 Speaker 6: Before we called that group magnificent, we would basically say 209 00:10:18,920 --> 00:10:22,640 Speaker 6: they have strong balance sheets in trenched market positions, and 210 00:10:22,640 --> 00:10:24,840 Speaker 6: if there's going to be a recession, that's a great 211 00:10:24,880 --> 00:10:27,760 Speaker 6: place to be because they'll be fine. But now the 212 00:10:27,800 --> 00:10:32,640 Speaker 6: conversations change from hard landing, soft landing, to no landing, 213 00:10:33,040 --> 00:10:35,559 Speaker 6: and I just wonder how you think about those names 214 00:10:35,559 --> 00:10:37,679 Speaker 6: and some of the facts, as Caroline was talking about 215 00:10:38,040 --> 00:10:40,280 Speaker 6: in the context of whether we actually just don't have 216 00:10:40,320 --> 00:10:43,760 Speaker 6: any pullback in the economy at all. 217 00:10:43,840 --> 00:10:46,240 Speaker 8: Well, we're really looking at more of a balance view 218 00:10:46,360 --> 00:10:49,840 Speaker 8: right now on the US stock market and the economy. 219 00:10:50,280 --> 00:10:53,240 Speaker 8: And the reason why is that while again the economic 220 00:10:53,280 --> 00:10:55,559 Speaker 8: data and the jobs market to your point, has been 221 00:10:55,600 --> 00:10:59,280 Speaker 8: better than most people have expected, we still have a 222 00:10:59,400 --> 00:11:04,520 Speaker 8: number oftionary forces in place balancing some of those positive factors, 223 00:11:04,640 --> 00:11:10,120 Speaker 8: and so we have had really the most rapid rate 224 00:11:10,600 --> 00:11:14,400 Speaker 8: increases in quite some time, and to your point earlier, 225 00:11:14,480 --> 00:11:18,079 Speaker 8: really the inflation fight is not quite done, just as 226 00:11:18,120 --> 00:11:20,760 Speaker 8: we saw for example with some of the ism numbers 227 00:11:20,760 --> 00:11:24,040 Speaker 8: this morning. And so with that, with that more balanced 228 00:11:24,120 --> 00:11:28,439 Speaker 8: view of rewards and risk, we really continue to watch 229 00:11:28,520 --> 00:11:31,480 Speaker 8: where that landing will go, whether it's no soft or 230 00:11:31,559 --> 00:11:34,679 Speaker 8: heart And in the meantime, we're really just cautioning our 231 00:11:34,679 --> 00:11:37,800 Speaker 8: investors to stay at whatever their strategic blitz would be 232 00:11:38,280 --> 00:11:41,160 Speaker 8: in the equity asset class, again reflective of a more 233 00:11:41,200 --> 00:11:42,920 Speaker 8: balanced reward risk ratio. 234 00:11:43,720 --> 00:11:45,560 Speaker 5: Lisa, so great to catch up with you. 235 00:11:45,720 --> 00:11:48,560 Speaker 3: Thank you for bringing your tech focus to the broader 236 00:11:48,559 --> 00:11:51,040 Speaker 3: macro markets at the moment. Lisa Erikson head a public 237 00:11:51,040 --> 00:11:53,400 Speaker 3: markets group over the US Bank Wealth Management. 238 00:12:01,920 --> 00:12:06,319 Speaker 6: The Semiconductor Industry Association is forecasting the global ship industry 239 00:12:06,480 --> 00:12:09,440 Speaker 6: will see sales jump to a record level this year, 240 00:12:09,679 --> 00:12:12,640 Speaker 6: fueled by a greater need for the electrical components from 241 00:12:12,679 --> 00:12:15,200 Speaker 6: a broad range of businesses. Joining me to break down 242 00:12:15,200 --> 00:12:18,320 Speaker 6: the data, Bloombergsy and King here in SF. What took 243 00:12:18,280 --> 00:12:20,000 Speaker 6: me by surprised about this report is I get the 244 00:12:20,040 --> 00:12:22,440 Speaker 6: overall twenty twenty four is going to be good, because 245 00:12:22,440 --> 00:12:25,000 Speaker 6: twenty twenty three was very bad. But it's not just 246 00:12:25,080 --> 00:12:27,600 Speaker 6: one single thing they're not saying. It's AI and everything. 247 00:12:27,920 --> 00:12:30,520 Speaker 6: They're saying across a lot of end markets things are 248 00:12:30,520 --> 00:12:31,640 Speaker 6: looking pretty good. 249 00:12:31,800 --> 00:12:33,920 Speaker 2: Well, you've got to remember that this is a projection 250 00:12:34,400 --> 00:12:35,920 Speaker 2: via the Industry Association. 251 00:12:36,200 --> 00:12:36,320 Speaker 1: Right. 252 00:12:36,480 --> 00:12:40,240 Speaker 2: Their basic thesis is chips are everywhere, and that is 253 00:12:40,320 --> 00:12:45,120 Speaker 2: broadly true, more things need semiconductors. But we're also, as 254 00:12:45,120 --> 00:12:46,840 Speaker 2: we'll find out in a minute when you speak to 255 00:12:46,880 --> 00:12:50,240 Speaker 2: the CEO on SEMI, there are countervailing forces here. There 256 00:12:50,280 --> 00:12:54,440 Speaker 2: are the secular argument more chips, more chips per vehicle, 257 00:12:54,480 --> 00:12:58,120 Speaker 2: more chips per industrial system against what's going on last year, 258 00:12:58,120 --> 00:13:00,360 Speaker 2: and there's still with us to an next day, which 259 00:13:00,400 --> 00:13:03,319 Speaker 2: is we still have inventory overhanging in certain areas. 260 00:13:04,040 --> 00:13:05,960 Speaker 5: I was just looking at that chart fascinating. 261 00:13:06,000 --> 00:13:08,400 Speaker 3: I in that Europe was basically the only area that 262 00:13:08,440 --> 00:13:11,720 Speaker 3: posted growth last year. We sit here as originally three 263 00:13:11,760 --> 00:13:15,400 Speaker 3: Europeans and it's kind of amazing that in their economic 264 00:13:15,480 --> 00:13:19,160 Speaker 3: environment they saw gains where globally speaking, we meant to 265 00:13:19,160 --> 00:13:21,800 Speaker 3: see the rebound. Is it all about China getting slightly better? 266 00:13:23,160 --> 00:13:25,880 Speaker 2: I mean it is in theory. Everywhere you've got you've 267 00:13:25,880 --> 00:13:28,480 Speaker 2: had markets that were really quite poor, which is like 268 00:13:28,559 --> 00:13:31,920 Speaker 2: such as the PC and the smartphone. Now those markets 269 00:13:31,960 --> 00:13:35,080 Speaker 2: have got through that inventory and in theory that you know, 270 00:13:35,080 --> 00:13:36,760 Speaker 2: with a bit of consumer demand and a bit of 271 00:13:36,800 --> 00:13:40,400 Speaker 2: end market demand, they're going to be very strong. Really speaking, 272 00:13:40,440 --> 00:13:42,760 Speaker 2: though we're looking at AI, we're looking at the data center. 273 00:13:42,840 --> 00:13:45,640 Speaker 2: The big concerns still in people's minds is what's going 274 00:13:45,679 --> 00:13:48,600 Speaker 2: on with industrial and what's going on with automotive. And 275 00:13:48,640 --> 00:13:50,800 Speaker 2: again you're going to be speaking to a CEO be 276 00:13:50,800 --> 00:13:52,480 Speaker 2: able to tell you a little bit more about. 277 00:13:52,280 --> 00:13:52,880 Speaker 9: That in a minute. 278 00:13:53,520 --> 00:13:56,160 Speaker 3: That's do just that inking brilliant to catch up with you. 279 00:13:56,240 --> 00:13:59,080 Speaker 3: Thank you for bringing us the industry report. We appreciate it. 280 00:13:59,080 --> 00:14:02,319 Speaker 3: It's now deep into basically the highest performing. 281 00:14:02,000 --> 00:14:02,800 Speaker 5: Chip stock of the day. 282 00:14:02,840 --> 00:14:05,480 Speaker 3: It's more than eight percent the best performer on the 283 00:14:05,520 --> 00:14:07,840 Speaker 3: socks at the moment on Semi joining us for reporting 284 00:14:07,920 --> 00:14:11,319 Speaker 3: fourth quarter results that well seem to post forward an 285 00:14:11,360 --> 00:14:13,880 Speaker 3: idea that in this quarter gone it was doing better 286 00:14:13,880 --> 00:14:16,520 Speaker 3: than expected and indeed maybe though some of the forward 287 00:14:16,559 --> 00:14:19,160 Speaker 3: looking guidance not being as bad as had been expected. 288 00:14:19,640 --> 00:14:21,440 Speaker 5: Really to welcome Hassan al Kuri on. 289 00:14:21,440 --> 00:14:24,520 Speaker 3: Semi CEO and has and when we're digging into some 290 00:14:24,600 --> 00:14:27,840 Speaker 3: of the overall focus of your business, just where are 291 00:14:27,920 --> 00:14:31,600 Speaker 3: you seeing particularly some of the optimism coming from the investor. 292 00:14:31,640 --> 00:14:33,280 Speaker 5: Why are you managing to. 293 00:14:33,240 --> 00:14:36,280 Speaker 3: Think that despite evs, for example, being an area we're 294 00:14:36,320 --> 00:14:39,960 Speaker 3: worried about stagnation, you're still able to outperform in that area. 295 00:14:40,360 --> 00:14:42,600 Speaker 10: Yeah, good morning, thanks again for having me. 296 00:14:42,960 --> 00:14:43,040 Speaker 1: So. 297 00:14:43,120 --> 00:14:46,000 Speaker 10: Yeah, we reported a quarter. I think the reaction you 298 00:14:46,040 --> 00:14:48,600 Speaker 10: see in the stock, I think it's it's all based 299 00:14:48,600 --> 00:14:51,080 Speaker 10: on where the expectation has been and really what a 300 00:14:51,080 --> 00:14:55,400 Speaker 10: lot of our peers have already reported. What differentiates on 301 00:14:55,480 --> 00:14:58,960 Speaker 10: Semi for the last I would say four to six quarters, 302 00:14:59,440 --> 00:15:04,280 Speaker 10: we have being taken action to match and become more 303 00:15:04,320 --> 00:15:07,000 Speaker 10: in line with what we see from an end demand, 304 00:15:07,000 --> 00:15:09,840 Speaker 10: both an industrial and automotive. If you recall and the 305 00:15:09,960 --> 00:15:15,200 Speaker 10: third quarter earnings I started talking about bottomotive softness, inventory 306 00:15:15,240 --> 00:15:19,320 Speaker 10: digestion that extended. Therefore, it was not a surprise to 307 00:15:19,360 --> 00:15:22,360 Speaker 10: what we announced today. It was more of an expectation 308 00:15:22,440 --> 00:15:25,640 Speaker 10: and really better than expected. But nevertheless, it was a 309 00:15:25,680 --> 00:15:28,880 Speaker 10: softness that we as a company have been very disciplined 310 00:15:28,920 --> 00:15:31,520 Speaker 10: in addressing to get us to weather through it much 311 00:15:31,560 --> 00:15:33,440 Speaker 10: better than a lot of our peers has. 312 00:15:33,640 --> 00:15:38,480 Speaker 6: One criticism from Truest Securities this morning was that there 313 00:15:38,640 --> 00:15:43,440 Speaker 6: wasn't anything said about the outlook what happens next in 314 00:15:43,480 --> 00:15:46,560 Speaker 6: those end markets. So you just said we rebalanced to 315 00:15:46,600 --> 00:15:50,320 Speaker 6: make sure our output match demand on industrial and automotive, 316 00:15:50,800 --> 00:15:54,000 Speaker 6: But going forward, what are you hearing from those end 317 00:15:54,120 --> 00:15:58,720 Speaker 6: market leaders and CEOs about what they think demand for 318 00:15:58,760 --> 00:16:00,280 Speaker 6: their industry will be in twenty four. 319 00:16:01,000 --> 00:16:05,160 Speaker 10: I think for us, the way we're managing twenty twenty four, 320 00:16:05,680 --> 00:16:08,720 Speaker 10: we're not managing for a recovery, which if you take 321 00:16:08,800 --> 00:16:12,400 Speaker 10: where we are today as a base, twenty twenty four 322 00:16:12,520 --> 00:16:15,000 Speaker 10: is going to be basically down in all end markets 323 00:16:15,240 --> 00:16:17,800 Speaker 10: versus twenty twenty three, which was a good year and 324 00:16:17,920 --> 00:16:21,960 Speaker 10: a lot of the markets. So industrial, automotive and then 325 00:16:21,960 --> 00:16:26,200 Speaker 10: the other end markets will remain soft. If the demand 326 00:16:26,200 --> 00:16:28,680 Speaker 10: picks up in the second half, that's great. That's all 327 00:16:28,720 --> 00:16:34,240 Speaker 10: tailwinds for us from fabriutilization that impacts margin, profitability, and revenue. 328 00:16:34,640 --> 00:16:35,640 Speaker 4: We'd rather be in. 329 00:16:35,560 --> 00:16:39,560 Speaker 10: This spot rather than prepare for a recovery that doesn't happen. 330 00:16:39,680 --> 00:16:42,720 Speaker 10: Now you have a correction mid year. We're taking again 331 00:16:42,880 --> 00:16:45,440 Speaker 10: a much more discipline approach which worked very well with 332 00:16:45,600 --> 00:16:48,440 Speaker 10: us for US in Q four, coming into Q one. 333 00:16:49,480 --> 00:16:51,760 Speaker 6: We use the case study of silicon carbide in the 334 00:16:51,800 --> 00:16:56,120 Speaker 6: EV context, and Caroline quite rightly points out that we 335 00:16:56,160 --> 00:16:58,840 Speaker 6: think there will be growth in twenty twenty four, it 336 00:16:58,880 --> 00:17:03,280 Speaker 6: will just be slow growth. The growth is decelerating in 337 00:17:03,320 --> 00:17:04,600 Speaker 6: global EV demand. 338 00:17:05,240 --> 00:17:06,760 Speaker 4: Does your business reflect that? 339 00:17:08,400 --> 00:17:12,120 Speaker 10: Yeah, I spoke about it earlier today, where the industry 340 00:17:12,160 --> 00:17:15,560 Speaker 10: still projects a high number for EV growth in the 341 00:17:15,560 --> 00:17:20,240 Speaker 10: thirty to forty what I believe based on customer engagement 342 00:17:20,240 --> 00:17:24,480 Speaker 10: are really based on some of the leading OEMs in 343 00:17:24,520 --> 00:17:28,879 Speaker 10: the automotive industry what they projected for their EV growth 344 00:17:28,920 --> 00:17:31,399 Speaker 10: in twenty twenty four. We look at it more and 345 00:17:31,680 --> 00:17:37,159 Speaker 10: twenty to thirty growth, So for me, I more trust 346 00:17:37,240 --> 00:17:39,960 Speaker 10: what we see and that's what we're managing to still 347 00:17:40,240 --> 00:17:43,280 Speaker 10: very heavy growth because what we also projected in light 348 00:17:43,480 --> 00:17:46,919 Speaker 10: of that market growth is we will grow a silicon 349 00:17:47,000 --> 00:17:49,920 Speaker 10: car by two x the market. So at this point 350 00:17:49,920 --> 00:17:53,080 Speaker 10: in time in twenty twenty four, we're peck to and demand. 351 00:17:53,480 --> 00:17:56,719 Speaker 10: Products are out, qualifications are there, We're designed in all 352 00:17:56,760 --> 00:18:00,480 Speaker 10: the platforms that we need to be designed into right now. 353 00:18:00,520 --> 00:18:03,600 Speaker 10: It is an end demand signal. We will still take share, 354 00:18:03,720 --> 00:18:05,920 Speaker 10: we will still grow ahead of market at two x. 355 00:18:06,240 --> 00:18:08,800 Speaker 10: The question is what will the market do through twenty 356 00:18:08,800 --> 00:18:09,320 Speaker 10: twenty four. 357 00:18:09,520 --> 00:18:12,040 Speaker 3: And as you said in your call, electrification remains a 358 00:18:12,080 --> 00:18:15,000 Speaker 3: content expansion opportunity for you as you two X, So 359 00:18:15,359 --> 00:18:16,720 Speaker 3: who are the customers. 360 00:18:16,240 --> 00:18:17,760 Speaker 5: That manage to outperform? 361 00:18:17,800 --> 00:18:20,400 Speaker 3: Why have you managed to get the customers that are 362 00:18:20,520 --> 00:18:21,320 Speaker 3: ramping production? 363 00:18:21,520 --> 00:18:23,200 Speaker 5: Where in the world are they ramping production? 364 00:18:25,080 --> 00:18:28,040 Speaker 10: Bottom line, I've always been consistent, you only win when 365 00:18:28,040 --> 00:18:31,040 Speaker 10: you have the best technology. We've been providing the best 366 00:18:31,080 --> 00:18:34,879 Speaker 10: technology at a high power packaging. So both device silicon 367 00:18:34,920 --> 00:18:38,240 Speaker 10: carbide and the package we put in it the best 368 00:18:38,280 --> 00:18:41,120 Speaker 10: technology out there as far as performance. That's why we've 369 00:18:41,160 --> 00:18:45,320 Speaker 10: been winning. So we've been broadening our customer exposure to 370 00:18:45,440 --> 00:18:49,520 Speaker 10: kind of reduce that lumpiness from too many focused customers. 371 00:18:50,000 --> 00:18:53,520 Speaker 10: We have recognized revenue from over six hundred customers in 372 00:18:53,600 --> 00:18:58,159 Speaker 10: twenty twenty three. That will keep extending into twenty twenty 373 00:18:58,160 --> 00:19:01,320 Speaker 10: four as more of the European OI start ramping for US. 374 00:19:01,600 --> 00:19:05,240 Speaker 10: So again a very broad base of gossmer very diversified 375 00:19:05,280 --> 00:19:09,160 Speaker 10: regionally from China to North America, and like I said, 376 00:19:09,160 --> 00:19:12,040 Speaker 10: in Europe, that gives us a very good base to 377 00:19:12,200 --> 00:19:15,360 Speaker 10: clearly grow from as we manage through the short term 378 00:19:15,400 --> 00:19:16,359 Speaker 10: lumpness of ev. 379 00:19:16,359 --> 00:19:21,240 Speaker 6: Adoption hasan al Kuri on semi ceo best performing stock 380 00:19:21,680 --> 00:19:24,000 Speaker 6: on the socks today. Very quickly, I want to check 381 00:19:24,040 --> 00:19:27,480 Speaker 6: in on shares of coinbase down around nine percent their 382 00:19:27,520 --> 00:19:29,680 Speaker 6: session loads down more than ten percent, on track for 383 00:19:29,720 --> 00:19:31,920 Speaker 6: the biggest decline since June of last year. 384 00:19:31,920 --> 00:19:33,840 Speaker 4: But I got to be honest with you, Caroline. 385 00:19:33,640 --> 00:19:35,919 Speaker 6: We've got no idea what's going on, or no idea 386 00:19:35,960 --> 00:19:38,800 Speaker 6: why there are no headlines on the terminal relating to 387 00:19:38,840 --> 00:19:40,240 Speaker 6: the name. We're going to continue to dig in it 388 00:19:40,240 --> 00:19:42,200 Speaker 6: and get the crypto team on that. But a big 389 00:19:42,240 --> 00:19:45,720 Speaker 6: move to the downside coinbased off nine percent. This is 390 00:19:45,760 --> 00:20:07,160 Speaker 6: Bloomberg technology. 391 00:20:05,160 --> 00:20:05,480 Speaker 11: All right. 392 00:20:05,520 --> 00:20:06,360 Speaker 4: Time for talking tech. 393 00:20:06,440 --> 00:20:10,560 Speaker 6: First up, Samsung executive chairman Jy Lee has been acquitted 394 00:20:10,920 --> 00:20:15,000 Speaker 6: of stock manipulation charges, removing the threat of jail time. 395 00:20:15,280 --> 00:20:17,960 Speaker 6: That's loomed over one of Korea's most prominent business people 396 00:20:18,000 --> 00:20:20,520 Speaker 6: for years and lifting a weight off of the company 397 00:20:20,640 --> 00:20:23,440 Speaker 6: as it struggles with a global downturn and some more 398 00:20:23,440 --> 00:20:27,199 Speaker 6: competition from Apple in the smartphone space, and shares in 399 00:20:27,320 --> 00:20:29,880 Speaker 6: ATOS fell as much as thirty percent to a record 400 00:20:30,000 --> 00:20:33,359 Speaker 6: low after the French it company dropped plans to sell 401 00:20:33,400 --> 00:20:36,920 Speaker 6: seven hundred and seventy seven million inequity rights. ATOS said 402 00:20:36,920 --> 00:20:42,160 Speaker 6: it's seeking a mediator to help renegotiate of financing with lenders. 403 00:20:42,440 --> 00:20:46,120 Speaker 6: Plus Yandex has striked a five point two billion dollar 404 00:20:46,240 --> 00:20:49,840 Speaker 6: deal to sell its Russian business. It's the highest value 405 00:20:49,920 --> 00:20:53,399 Speaker 6: deal yet to exit Russia following the invasion of Ukraine. 406 00:20:53,480 --> 00:20:55,960 Speaker 6: Negotiations took more than a year, and it allows the 407 00:20:56,000 --> 00:21:00,359 Speaker 6: Netherlands registered company to develop projects abroad after dive investing 408 00:21:00,440 --> 00:21:03,560 Speaker 6: Russian units that generated most of its revenue. 409 00:21:03,720 --> 00:21:06,200 Speaker 5: Cara some companies to be watching. 410 00:21:06,240 --> 00:21:08,200 Speaker 3: Meanwhile, we've got to keep an eye on what's coming 411 00:21:08,320 --> 00:21:11,040 Speaker 3: up with Snap. Look, they're cunning ten percent of their 412 00:21:11,080 --> 00:21:14,120 Speaker 3: global workforce that as we know, the tech setter continues 413 00:21:14,160 --> 00:21:17,880 Speaker 3: to see layoffs more broadly, but will also be anticipating 414 00:21:17,960 --> 00:21:21,080 Speaker 3: the numbers coming from this particular business. They report, of course, 415 00:21:21,520 --> 00:21:24,760 Speaker 3: and we're anticipating actually some recover and revenue. But what 416 00:21:24,880 --> 00:21:26,480 Speaker 3: is the cost of having to let go of so 417 00:21:26,600 --> 00:21:28,919 Speaker 3: many staff? Will dig into that in a moment. Shares 418 00:21:29,160 --> 00:21:31,560 Speaker 3: had spiked a little bit on the news of this 419 00:21:31,680 --> 00:21:34,840 Speaker 3: cost discipline, but now we're back sinking more than four 420 00:21:34,920 --> 00:21:37,760 Speaker 3: percentage points on this particular social media name. 421 00:21:37,880 --> 00:21:39,720 Speaker 5: We'll dig into snap in a moment. This is a 422 00:21:39,760 --> 00:21:49,359 Speaker 5: BLUEBG technology. It's going viral. 423 00:21:49,720 --> 00:21:52,800 Speaker 3: Taylor Swift making history this weekend by winning her fourth 424 00:21:52,880 --> 00:21:55,800 Speaker 3: album of the year. If that wasn't enough, the superstar 425 00:21:55,880 --> 00:21:59,280 Speaker 3: announced a new album on its way April nineteenth, to 426 00:21:59,320 --> 00:22:02,480 Speaker 3: the excitement Swift these worldwide. But also there are a 427 00:22:02,480 --> 00:22:04,719 Speaker 3: fair few elephants in the room that night, one of 428 00:22:04,720 --> 00:22:08,160 Speaker 3: them from a tech perspective. Trevor Noah did address Universal 429 00:22:08,280 --> 00:22:11,160 Speaker 3: Music Group, of course, pulling its music catalog from TikTok, 430 00:22:11,520 --> 00:22:15,080 Speaker 3: which includes like the very own Taylor Swift drait not 431 00:22:15,200 --> 00:22:18,040 Speaker 3: to mention, but many others and ed, I mean, this 432 00:22:18,240 --> 00:22:20,360 Speaker 3: was a night of celebrating women. This was a night 433 00:22:20,560 --> 00:22:22,080 Speaker 3: where we saw history being made. 434 00:22:22,240 --> 00:22:23,200 Speaker 5: And what is the new? 435 00:22:23,520 --> 00:22:25,240 Speaker 3: I mean, I'm pretty sure you're more of a Swiftian 436 00:22:25,240 --> 00:22:27,200 Speaker 3: than I am. At the Tortured Poets Department. 437 00:22:27,240 --> 00:22:27,720 Speaker 4: You're excited. 438 00:22:28,760 --> 00:22:31,800 Speaker 6: Yeah, I mean it's astonishing because Swift goes in tied 439 00:22:32,040 --> 00:22:34,959 Speaker 6: to that event with Snartchrip or Simon Stevie Wonder and 440 00:22:35,000 --> 00:22:38,000 Speaker 6: then exceeds that record. And we're doing this and going 441 00:22:38,040 --> 00:22:41,160 Speaker 6: viral because it's all everyone's talking about on social media, right, 442 00:22:41,720 --> 00:22:45,200 Speaker 6: But you can't celebrate on TikTok, which is simply put, 443 00:22:45,240 --> 00:22:47,840 Speaker 6: you cannot use Taylor Swift songs on TikTok. 444 00:22:48,200 --> 00:22:51,320 Speaker 3: Yeah, and that continues to be an ongoing issue of 445 00:22:51,320 --> 00:22:55,040 Speaker 3: basically the monetization of such incredible moves made by artists 446 00:22:55,440 --> 00:22:59,080 Speaker 3: like this. But when we're consuming that, and maybe from 447 00:22:59,119 --> 00:23:03,480 Speaker 3: TikTok's the point of view helping market it, how much 448 00:23:03,720 --> 00:23:06,200 Speaker 3: does the money flow to the artists, to the labels. 449 00:23:06,240 --> 00:23:07,000 Speaker 5: That's a key question. 450 00:23:07,760 --> 00:23:10,520 Speaker 6: When I was reading Lucas's news letter Lucas Shaw's USTA 451 00:23:10,560 --> 00:23:14,520 Speaker 6: about this, you realize they've been negotiating on this for years, 452 00:23:14,520 --> 00:23:17,560 Speaker 6: so it's not a new thing. But there's been a 453 00:23:17,560 --> 00:23:21,880 Speaker 6: flashpoint because the volume of eyeballs is not translating into 454 00:23:21,920 --> 00:23:23,480 Speaker 6: dollars in the artist's pocket. 455 00:23:24,400 --> 00:23:25,240 Speaker 4: That's the tension. 456 00:23:25,800 --> 00:23:29,480 Speaker 3: Interestingly, of course, Taylor swift'shone collaborator saying, maybe UMG should 457 00:23:29,480 --> 00:23:31,200 Speaker 3: have given a heads up to some of the artists 458 00:23:31,200 --> 00:23:33,920 Speaker 3: before they did this. But anyway, we talk more broadly 459 00:23:34,080 --> 00:23:36,800 Speaker 3: about the world of social media and indeed well how 460 00:23:37,000 --> 00:23:39,359 Speaker 3: law makers are addressing in it right now, because across 461 00:23:39,359 --> 00:23:42,600 Speaker 3: the aisle we're actually seeing work being made for legislation 462 00:23:42,680 --> 00:23:46,480 Speaker 3: that would place safeguards in particularly across artificial intelligence. And 463 00:23:46,520 --> 00:23:48,439 Speaker 3: now this is about Taylor Swift too, because it of 464 00:23:48,480 --> 00:23:52,560 Speaker 3: course involves deep fake videos individuals such as Taylor Swift, 465 00:23:52,880 --> 00:23:56,159 Speaker 3: and there of course pornographic deep fake images that were 466 00:23:56,200 --> 00:23:59,800 Speaker 3: circulating on social media. Late last month, social network analysis 467 00:23:59,800 --> 00:24:03,439 Speaker 3: come need Graphica determined that the images of where they 468 00:24:03,520 --> 00:24:07,000 Speaker 3: originated from, it's actually an online challenge to break safety 469 00:24:07,040 --> 00:24:10,399 Speaker 3: measures designed to block people from generating loud images with 470 00:24:10,520 --> 00:24:13,920 Speaker 3: artificial intelligence. Margie Murphy has more so just go into 471 00:24:13,920 --> 00:24:16,879 Speaker 3: the detail of basically what's happening on certain parts of 472 00:24:16,880 --> 00:24:19,760 Speaker 3: the Internet where almost these weird challenges are erupting that 473 00:24:19,840 --> 00:24:21,720 Speaker 3: don't just affect Taylor Swift. 474 00:24:22,920 --> 00:24:23,760 Speaker 5: Right exactly. 475 00:24:24,280 --> 00:24:27,320 Speaker 12: For a long time now, before the images of Taylor 476 00:24:27,320 --> 00:24:31,479 Speaker 12: Swift emerged on x that caused huge outrage and caused 477 00:24:31,680 --> 00:24:34,960 Speaker 12: X to block Taylor Swift's searches. For a while, these 478 00:24:35,720 --> 00:24:40,760 Speaker 12: deep fake pornographic images of several women, celebrities, politicians were 479 00:24:40,800 --> 00:24:45,359 Speaker 12: already appearing on a four Chan forum and on a 480 00:24:45,400 --> 00:24:50,879 Speaker 12: thread where a community was engaging in daily competitions to 481 00:24:51,000 --> 00:24:56,200 Speaker 12: try and break the kind of text image generation models 482 00:24:56,240 --> 00:24:59,720 Speaker 12: that we're all really familiar with, like Microsoft's image designer 483 00:25:00,200 --> 00:25:03,560 Speaker 12: open a Eyes Dari, and they have for weeks now 484 00:25:03,680 --> 00:25:06,920 Speaker 12: been trying to teach each other how to use certain 485 00:25:06,960 --> 00:25:09,640 Speaker 12: words to get around the safeguards that have been put 486 00:25:09,640 --> 00:25:13,520 Speaker 12: in place to create these pornographic images that these companies 487 00:25:13,560 --> 00:25:16,159 Speaker 12: who create the models say aren't allowed. 488 00:25:17,320 --> 00:25:21,080 Speaker 6: The technology stories is the use of text image creators, 489 00:25:21,160 --> 00:25:25,040 Speaker 6: and the policy point was the banning of some keywords 490 00:25:25,359 --> 00:25:28,000 Speaker 6: and then using others to get around it. Then there's 491 00:25:28,040 --> 00:25:30,479 Speaker 6: the political side of this story, which is basically this 492 00:25:30,520 --> 00:25:33,800 Speaker 6: has been a really big story and now lawmakers and 493 00:25:33,840 --> 00:25:36,639 Speaker 6: Capitol Hill are thinking about what they need to do 494 00:25:36,720 --> 00:25:37,200 Speaker 6: about it. 495 00:25:37,560 --> 00:25:40,560 Speaker 12: Right, So, Taylor Swift was not the first person to 496 00:25:40,560 --> 00:25:42,880 Speaker 12: be deep fake, she won't be the last, but because 497 00:25:42,880 --> 00:25:46,680 Speaker 12: of her celebrity late last month, we just people were 498 00:25:46,680 --> 00:25:48,560 Speaker 12: talking about it so much more. We had the White 499 00:25:48,600 --> 00:25:52,120 Speaker 12: House condemning it. We had this reanogization of a bill 500 00:25:52,200 --> 00:25:54,800 Speaker 12: that had been brought in, a bipartisan bill because at 501 00:25:54,840 --> 00:25:58,440 Speaker 12: the moment there is no federal law that bans deep 502 00:25:58,440 --> 00:26:02,160 Speaker 12: fake pornography, and we've got kind of scattered approach across states. 503 00:26:02,320 --> 00:26:05,720 Speaker 12: So although this has been happening for a really, really 504 00:26:05,760 --> 00:26:10,200 Speaker 12: long time, we're finally seeing the kind of politicians, lawmakers, 505 00:26:10,240 --> 00:26:13,320 Speaker 12: everyone's taking action, and brightly. 506 00:26:13,000 --> 00:26:15,520 Speaker 6: So are Bloomberg's Margie Murphy, who, by the way, has 507 00:26:15,520 --> 00:26:18,240 Speaker 6: done a very big body of reporting on this issue. 508 00:26:18,240 --> 00:26:20,720 Speaker 6: I highly recommend you read it on Bloomberg dot Com. 509 00:26:20,760 --> 00:26:24,960 Speaker 6: Another story, Mesa's independent oversight board agreed with the company's 510 00:26:25,000 --> 00:26:29,040 Speaker 6: recent decision to leave up a misleading video of US 511 00:26:29,119 --> 00:26:32,840 Speaker 6: President Joe Biden, but called its policies on AI generated 512 00:26:32,920 --> 00:26:36,920 Speaker 6: content incoherent and too narrow. The board is now urging 513 00:26:37,000 --> 00:26:40,280 Speaker 6: Meta to update its policies ahead of the twenty twenty 514 00:26:40,320 --> 00:26:43,520 Speaker 6: four US general election. Will continue to follow, of course, 515 00:26:43,600 --> 00:26:44,960 Speaker 6: that story throughout the year. 516 00:26:45,080 --> 00:26:47,960 Speaker 3: Karen, Yeah, and let's just stick on the world of 517 00:26:48,000 --> 00:26:50,040 Speaker 3: social media, because we've got to shine light on what's 518 00:26:50,080 --> 00:26:52,960 Speaker 3: happening with snap The perment of Snapchat cunning is workforce 519 00:26:52,960 --> 00:26:57,200 Speaker 3: by around ten percent worldwide, joining us of course around 520 00:26:57,280 --> 00:26:59,600 Speaker 3: the entire focus of a slader technology companies that have 521 00:26:59,640 --> 00:27:03,359 Speaker 3: announce layoff of the layoff is money, saying of Bloomberg Intelligence, 522 00:27:03,400 --> 00:27:06,040 Speaker 3: and really this is once again a company perhaps trying 523 00:27:06,080 --> 00:27:09,840 Speaker 3: to front run a slowing ad market narrative that's going 524 00:27:09,880 --> 00:27:12,160 Speaker 3: to come from the earnings with cost discipline, we're doing 525 00:27:12,200 --> 00:27:12,800 Speaker 3: something about it. 526 00:27:13,000 --> 00:27:15,640 Speaker 11: Yeah, I mean, look, Meta has set up a good 527 00:27:15,680 --> 00:27:19,080 Speaker 11: blueprint in terms of what companies need to do, especially 528 00:27:19,119 --> 00:27:21,760 Speaker 11: in the social media land, and it's worked for them. 529 00:27:21,800 --> 00:27:24,640 Speaker 11: I mean, the proof is in the numbers they delivered 530 00:27:24,720 --> 00:27:28,200 Speaker 11: last week, and every company that went big in terms 531 00:27:28,240 --> 00:27:32,359 Speaker 11: of layoffs in twenty twenty three actually benefited with better 532 00:27:32,440 --> 00:27:35,720 Speaker 11: execution and top line growth. In the case of Meta, 533 00:27:36,160 --> 00:27:39,280 Speaker 11: I would be curious to see how ad pricing tends 534 00:27:39,560 --> 00:27:42,600 Speaker 11: recover for a snap, because what we saw with Meta 535 00:27:42,800 --> 00:27:45,440 Speaker 11: was there was a clear inflection in terms of digital 536 00:27:45,480 --> 00:27:49,479 Speaker 11: ad pricing coming back that actually helped their top line. 537 00:27:49,800 --> 00:27:52,600 Speaker 11: And I would be surprised if it's exclusive to Meta, 538 00:27:52,680 --> 00:27:55,920 Speaker 11: because we know from the past that all these digital 539 00:27:55,960 --> 00:27:59,840 Speaker 11: ad vendors benefit when you know it's there's a cyclical uptrend. 540 00:28:00,280 --> 00:28:03,240 Speaker 11: And so that is to me the key number for 541 00:28:03,400 --> 00:28:06,280 Speaker 11: pinterest in Meta is they should also see that lift 542 00:28:06,320 --> 00:28:08,400 Speaker 11: in at pricing when the report earnings. 543 00:28:08,440 --> 00:28:10,879 Speaker 3: What's interesting about Snap, though, is that they've kind of 544 00:28:10,920 --> 00:28:14,320 Speaker 3: been flailing to find some sort of diversification. They were 545 00:28:14,520 --> 00:28:18,520 Speaker 3: looking into augmented reality, helping other companies embrace that, and 546 00:28:18,560 --> 00:28:20,440 Speaker 3: then realize that wasn't the way they should be spending 547 00:28:20,480 --> 00:28:20,919 Speaker 3: their money. 548 00:28:21,080 --> 00:28:21,560 Speaker 5: How are you. 549 00:28:21,680 --> 00:28:24,600 Speaker 3: Seeing their narrative build as to what this company stands for, 550 00:28:24,640 --> 00:28:26,080 Speaker 3: where the growth is going to come from. 551 00:28:26,240 --> 00:28:28,919 Speaker 11: I mean, they probably are narrowing their focus, so the 552 00:28:28,960 --> 00:28:31,600 Speaker 11: layoffs have to come from somewhere. And the last round 553 00:28:31,640 --> 00:28:34,840 Speaker 11: of layoffs was really focused on augmented reality because they 554 00:28:34,880 --> 00:28:37,359 Speaker 11: wanted to narrow down the focus to the profitable part 555 00:28:37,400 --> 00:28:40,480 Speaker 11: of the business, which is the social media ads. Look 556 00:28:40,640 --> 00:28:44,400 Speaker 11: with Meta, we saw reels engagement continues to grow twenty 557 00:28:44,440 --> 00:28:47,800 Speaker 11: five percent growth in reels. Snap has an equivalent of reels, 558 00:28:47,840 --> 00:28:50,719 Speaker 11: it's called Spotlight. They don't make any money off of that, 559 00:28:51,120 --> 00:28:54,000 Speaker 11: and that's where you want to see monetization. Why is 560 00:28:54,120 --> 00:28:57,400 Speaker 11: Meta monetizing video? And they've caught up to TikTok and 561 00:28:57,440 --> 00:29:00,960 Speaker 11: not Snap, And I think that's where it's still this 562 00:29:01,080 --> 00:29:04,560 Speaker 11: story is still missing why can't Snap monetize videos as 563 00:29:04,560 --> 00:29:05,719 Speaker 11: effectively as Mata. 564 00:29:06,440 --> 00:29:09,560 Speaker 6: This sets us up nicely because Snap reports earnings after 565 00:29:09,560 --> 00:29:14,160 Speaker 6: the bell tomorrow, and I think my takeaway from the 566 00:29:14,160 --> 00:29:17,200 Speaker 6: Meta earnings was I understand how you work in AI 567 00:29:18,200 --> 00:29:21,360 Speaker 6: is relating to your core business. You point out Snap 568 00:29:21,400 --> 00:29:25,160 Speaker 6: has Spotlight, but it also has Snapchat plus my AI, 569 00:29:25,600 --> 00:29:30,040 Speaker 6: and I don't really understand how that's helping them yet. 570 00:29:30,920 --> 00:29:34,360 Speaker 11: Yeah, I mean, look, when a company of this size, 571 00:29:34,440 --> 00:29:38,160 Speaker 11: Meta is like one point two trillion, compare that to 572 00:29:38,240 --> 00:29:41,959 Speaker 11: Snap twenty seven billion, So it's only fifty times in 573 00:29:42,120 --> 00:29:46,080 Speaker 11: a market size compared to Snapchat. So I would much 574 00:29:46,200 --> 00:29:48,680 Speaker 11: rather better on a smaller company at this point of 575 00:29:48,800 --> 00:29:51,720 Speaker 11: time to drive up its engagement, and it should have 576 00:29:51,800 --> 00:29:54,600 Speaker 11: a long runway compared to Meta, which we know is 577 00:29:54,640 --> 00:29:58,520 Speaker 11: executing flawlessly. It's got that AI scale and you know 578 00:29:58,720 --> 00:30:02,240 Speaker 11: it's on Lama Ma model. But still for a smaller 579 00:30:02,280 --> 00:30:06,080 Speaker 11: company with four hundred million daily active users, they should 580 00:30:06,080 --> 00:30:08,440 Speaker 11: be able to figure out how to use AI to 581 00:30:08,520 --> 00:30:11,640 Speaker 11: drive their engagement, how to improve their AD infrastructure. And 582 00:30:11,680 --> 00:30:14,800 Speaker 11: that's where I do think Snap things are fixable. It's 583 00:30:14,840 --> 00:30:17,600 Speaker 11: just we haven't seen that monetization aspect yet. From their 584 00:30:18,000 --> 00:30:19,160 Speaker 11: ancillary products. 585 00:30:20,120 --> 00:30:22,360 Speaker 6: At the end of last year, Mende you and the 586 00:30:22,400 --> 00:30:25,800 Speaker 6: team also wrote about snaps kind of e commerce potential. 587 00:30:25,840 --> 00:30:27,840 Speaker 6: I think that was because it had done some partnerships 588 00:30:27,840 --> 00:30:31,360 Speaker 6: with Amazon, for example. Do you believe that's an opportunity 589 00:30:31,360 --> 00:30:32,240 Speaker 6: for Snaps still? 590 00:30:33,200 --> 00:30:35,720 Speaker 11: I think so. And look, Meta has also done a 591 00:30:35,720 --> 00:30:39,520 Speaker 11: partnership with Amazon. So Snap's partnership as an exclusive pinterest 592 00:30:39,560 --> 00:30:42,880 Speaker 11: has done the same. For all these social media companies. 593 00:30:42,920 --> 00:30:46,560 Speaker 11: The holy grail is in app e commerce. They haven't 594 00:30:46,600 --> 00:30:49,440 Speaker 11: figured it out because the logistics part is very hard 595 00:30:49,480 --> 00:30:52,320 Speaker 11: when it comes to social media pivoting to e commerce, 596 00:30:52,360 --> 00:30:54,520 Speaker 11: and we have seen that with the Chinese companies. But 597 00:30:55,200 --> 00:30:58,480 Speaker 11: in the end, you know, Amazon partnership does make sense 598 00:30:58,560 --> 00:31:02,760 Speaker 11: because Amazon clearly has the fulfillment capacity and it does 599 00:31:02,880 --> 00:31:05,880 Speaker 11: need the channel for you know, the social media companies 600 00:31:05,920 --> 00:31:09,080 Speaker 11: to transfer over the customers that are engaging with them 601 00:31:09,320 --> 00:31:11,680 Speaker 11: almost sixty to seventy minutes a day. So it does 602 00:31:11,760 --> 00:31:13,480 Speaker 11: make sense. But it would be interesting to see how 603 00:31:13,560 --> 00:31:15,120 Speaker 11: it affects snaps gross margin. 604 00:31:15,480 --> 00:31:17,720 Speaker 3: Well, we wait for those numbers to be coming out, 605 00:31:17,800 --> 00:31:22,200 Speaker 3: of course, and really dictating how the stock continues to perform. 606 00:31:22,240 --> 00:31:24,239 Speaker 3: Man Deep Seeing and bloom Bag Intelligence brilliant to get 607 00:31:24,240 --> 00:31:27,400 Speaker 3: the deep dive ahead of snap zone earnings. Meanwhile, coming up, 608 00:31:27,440 --> 00:31:30,280 Speaker 3: we'll be turning back to the state of the semiconductor industry. 609 00:31:30,360 --> 00:31:32,360 Speaker 3: We're going to be speaking with the Element Solutions CEO 610 00:31:32,640 --> 00:31:33,600 Speaker 3: Ben click chick. 611 00:31:34,160 --> 00:31:45,560 Speaker 9: This is Bloomberg Technology. 612 00:31:51,920 --> 00:31:56,320 Speaker 8: We established ourselves, as you know, a key AI contender. 613 00:31:56,080 --> 00:32:04,440 Speaker 10: India, Japan and France, Canada, now Southeast Asia, Singapore speak 614 00:32:04,520 --> 00:32:08,880 Speaker 10: up about the importance of investing in sovereign AI capabilities. 615 00:32:09,000 --> 00:32:13,240 Speaker 13: The early signs of gen AI youth cases are actually exciting. 616 00:32:13,280 --> 00:32:17,880 Speaker 3: We're going to show just how capable and how much 617 00:32:18,840 --> 00:32:21,640 Speaker 3: AI is now part of, you know, really the entire 618 00:32:21,720 --> 00:32:22,800 Speaker 3: AMD story. 619 00:32:22,680 --> 00:32:26,880 Speaker 10: For the very first time. Because of generative AI, computers 620 00:32:27,000 --> 00:32:29,680 Speaker 10: are going to be computer technology is going to impact 621 00:32:30,280 --> 00:32:32,600 Speaker 10: literally every single industry in every single country. 622 00:32:32,680 --> 00:32:36,720 Speaker 13: That could create an interesting opportunity for upgrade cycle and 623 00:32:36,800 --> 00:32:38,600 Speaker 13: phone well. 624 00:32:38,760 --> 00:32:42,320 Speaker 3: An array of CEOs after, of course, earnings from the 625 00:32:42,400 --> 00:32:44,280 Speaker 3: chip makers and they will have a lot to say 626 00:32:44,280 --> 00:32:47,000 Speaker 3: about artificial intelligence of course in this cultum beyond. But 627 00:32:47,280 --> 00:32:48,840 Speaker 3: let's check in on the markets right here, right now 628 00:32:48,840 --> 00:32:51,680 Speaker 3: when it comes to semiconductors, because we're managing despite the 629 00:32:51,720 --> 00:32:52,640 Speaker 3: macro picture, of. 630 00:32:52,600 --> 00:32:55,120 Speaker 5: Which is one of too strong a growth from. 631 00:32:55,000 --> 00:32:57,360 Speaker 3: A US economy, so therefore pushing back on some of 632 00:32:57,400 --> 00:32:59,640 Speaker 3: these tech stocks. The socks does remain higher, up by 633 00:32:59,640 --> 00:33:01,880 Speaker 3: three time percent. Largely we got in video to thank 634 00:33:01,960 --> 00:33:04,720 Speaker 3: We thank Coldman Sachs for that particular rerating on this 635 00:33:04,800 --> 00:33:07,560 Speaker 3: particular price target for in video they see yet further growth. 636 00:33:07,760 --> 00:33:09,200 Speaker 5: Interestingly, AMD is on. 637 00:33:09,160 --> 00:33:12,120 Speaker 3: The downside, even though they too had an upgrade coming 638 00:33:12,160 --> 00:33:14,880 Speaker 3: from Philip Securities in fact about AI tailwinds. But it's 639 00:33:14,960 --> 00:33:17,160 Speaker 3: under pressure more broadly as the rest of the market 640 00:33:17,160 --> 00:33:20,920 Speaker 3: feels a little bit of weakness amid this stronger macro data. 641 00:33:21,040 --> 00:33:23,480 Speaker 3: But ed it is notable that on semi managers to 642 00:33:23,480 --> 00:33:25,240 Speaker 3: be riding high on it's earnings. We've got a deep 643 00:33:25,240 --> 00:33:26,520 Speaker 3: dive continuing on chips. 644 00:33:27,440 --> 00:33:29,080 Speaker 4: Yeah, someone that knows the space well. 645 00:33:29,240 --> 00:33:32,719 Speaker 6: Ben Glickish is the CEO of Element Solutions, which produces 646 00:33:32,800 --> 00:33:37,040 Speaker 6: chemicals in almost every EV smartphone computer and develops next 647 00:33:37,040 --> 00:33:39,480 Speaker 6: gen chemicals that enable tech advancements. 648 00:33:39,480 --> 00:33:41,280 Speaker 4: And what all of those things have in common. 649 00:33:41,680 --> 00:33:45,120 Speaker 6: You know, we focus so much on this show on 650 00:33:45,160 --> 00:33:49,680 Speaker 6: the GPU, CPU analog level, but we're talking about circuit boards, 651 00:33:50,040 --> 00:33:52,920 Speaker 6: integrated circuits and what they all have in common. Ben 652 00:33:53,440 --> 00:33:57,360 Speaker 6: is they're all rethinking their supply chain, and we're heading 653 00:33:57,400 --> 00:34:00,960 Speaker 6: towards this kind of decoupling from China. You know, we've 654 00:34:01,000 --> 00:34:03,280 Speaker 6: done a lot of reporting here at Bloomberg about Apple, 655 00:34:03,360 --> 00:34:06,320 Speaker 6: for example, wanting to shift some of its supply chain 656 00:34:06,360 --> 00:34:11,200 Speaker 6: based from China to India. Is that is somebody involved 657 00:34:11,200 --> 00:34:13,480 Speaker 6: in that supply chain, as simple as that. 658 00:34:14,719 --> 00:34:17,560 Speaker 14: So we like to say chips don't float, and so 659 00:34:17,640 --> 00:34:22,359 Speaker 14: Element Solutions products are used in semiconductor manufacturing, in assembling, 660 00:34:22,920 --> 00:34:25,759 Speaker 14: putting chips onto circuit boards, and in making high performance 661 00:34:26,000 --> 00:34:27,000 Speaker 14: printed circuit boards. 662 00:34:27,280 --> 00:34:29,320 Speaker 4: And the printed circuit board market. 663 00:34:29,120 --> 00:34:33,080 Speaker 14: Is primarily an Asian market, but we're seeing a shift 664 00:34:33,080 --> 00:34:35,680 Speaker 14: towards something called China plus one, and so supply chains 665 00:34:35,719 --> 00:34:40,800 Speaker 14: are moving outside of China two places like India, Vietnam, Thailand, Malaysia, 666 00:34:41,000 --> 00:34:43,280 Speaker 14: and we're even starting to see some green field investment 667 00:34:43,280 --> 00:34:46,600 Speaker 14: in printed circuit board capacity here in North America, Mexico 668 00:34:46,840 --> 00:34:47,440 Speaker 14: in the US. 669 00:34:48,280 --> 00:34:50,920 Speaker 3: Then, when it comes to your role and Element Solutions, 670 00:34:50,960 --> 00:34:53,520 Speaker 3: how much are you part of the soul for these companies? 671 00:34:54,120 --> 00:35:00,680 Speaker 14: So our technologies are used in every high performance electronics 672 00:35:00,680 --> 00:35:04,759 Speaker 14: device in the market. So we're an enabling provider of 673 00:35:05,120 --> 00:35:08,360 Speaker 14: chemical technology for all of these markets, and for us, 674 00:35:08,680 --> 00:35:12,719 Speaker 14: our manufacturing processes are pretty simple. Our people are global, 675 00:35:13,000 --> 00:35:15,759 Speaker 14: and so we're welcoming these supply chains as they move 676 00:35:15,800 --> 00:35:19,040 Speaker 14: to new places. Our footprints are ready there, and it's 677 00:35:19,040 --> 00:35:21,960 Speaker 14: an opportunity for us to support our customers as they 678 00:35:22,000 --> 00:35:24,320 Speaker 14: diversify their supply chains when they move out of China 679 00:35:24,440 --> 00:35:25,480 Speaker 14: or into new markets. 680 00:35:25,920 --> 00:35:30,760 Speaker 3: And what therefore, for you is any sort of block 681 00:35:31,280 --> 00:35:34,480 Speaker 3: on your own ability to keep up with the demand. 682 00:35:34,520 --> 00:35:36,680 Speaker 3: All we hear about is just like the absolute scale 683 00:35:36,719 --> 00:35:38,399 Speaker 3: the price point than the need. 684 00:35:39,080 --> 00:35:40,680 Speaker 5: Has there anything that's been slowing you down? 685 00:35:40,760 --> 00:35:43,560 Speaker 3: Or is it just ability to roll out in lockstep 686 00:35:43,600 --> 00:35:44,360 Speaker 3: with the demand. 687 00:35:44,680 --> 00:35:44,879 Speaker 8: Yeah. 688 00:35:44,960 --> 00:35:47,440 Speaker 14: So we're fortunate because we've been in these markets for 689 00:35:47,920 --> 00:35:52,200 Speaker 14: decades and our customers and our customers customers the OEMs 690 00:35:52,239 --> 00:35:55,319 Speaker 14: rely on us to come up with new solutions to 691 00:35:55,440 --> 00:35:58,840 Speaker 14: enable their next generation products. And so for us, staying 692 00:35:58,840 --> 00:36:03,760 Speaker 14: on top of innovation, technology, roadmap exchanges with customers enables 693 00:36:03,880 --> 00:36:04,440 Speaker 14: us to. 694 00:36:04,480 --> 00:36:05,760 Speaker 4: Meet those emerging needs. 695 00:36:06,480 --> 00:36:09,959 Speaker 14: And then we make investments in new material science technologies 696 00:36:10,760 --> 00:36:16,240 Speaker 14: as the legacy capabilities don't meet the needs of next generationships. 697 00:36:16,280 --> 00:36:19,640 Speaker 14: For AI, we're investing to support that. Outside of our 698 00:36:19,680 --> 00:36:23,120 Speaker 14: four walls and bringing very interesting capabilities to market. 699 00:36:24,719 --> 00:36:28,280 Speaker 6: Ben When we think about some of the end markets 700 00:36:28,280 --> 00:36:29,920 Speaker 6: that we listed at the top of the segment that 701 00:36:29,920 --> 00:36:34,880 Speaker 6: you're in EV smartphone, there are mixed forecasts of what 702 00:36:34,920 --> 00:36:37,680 Speaker 6: twenty twenty four looks like. You heard from Christiano Mamman 703 00:36:37,719 --> 00:36:41,279 Speaker 6: a moment ago right quile Con saying flat to low 704 00:36:41,360 --> 00:36:42,560 Speaker 6: single digits growth. 705 00:36:42,400 --> 00:36:43,680 Speaker 4: In the smartphone market. 706 00:36:43,960 --> 00:36:47,560 Speaker 6: We've covered a lot broadly, a slow down in EV 707 00:36:47,800 --> 00:36:51,560 Speaker 6: growth globally. Is that reflecting what your customers are engaging 708 00:36:51,560 --> 00:36:51,960 Speaker 6: with you on. 709 00:36:52,320 --> 00:36:55,480 Speaker 14: Yeah, So we call the bottom in our electronics business 710 00:36:55,520 --> 00:36:57,919 Speaker 14: in the second quarter of twenty twenty three. Twenty twenty 711 00:36:57,920 --> 00:37:01,120 Speaker 14: three was a tough year in electronics from a demand perspective, 712 00:37:01,160 --> 00:37:02,920 Speaker 14: but also because there's a lot of inventory in the 713 00:37:03,000 --> 00:37:05,880 Speaker 14: channel that had to clear. We've seen a recovery in 714 00:37:05,920 --> 00:37:07,960 Speaker 14: the back half of twenty twenty three and we see 715 00:37:07,960 --> 00:37:11,160 Speaker 14: growth in twenty twenty four. Smartphone units should grow in 716 00:37:11,200 --> 00:37:13,359 Speaker 14: twenty twenty four and will be lapping a period of 717 00:37:13,400 --> 00:37:16,040 Speaker 14: inventory clearing, so we should have nice growth from that 718 00:37:16,120 --> 00:37:19,120 Speaker 14: part of the business. And our business isn't just driven 719 00:37:19,160 --> 00:37:22,000 Speaker 14: by units, it's driven by content per units. So each 720 00:37:22,080 --> 00:37:26,080 Speaker 14: next generation technology of smartphone has more value of our 721 00:37:26,160 --> 00:37:30,640 Speaker 14: technology because it's enabling higher performance applications. Similar in the 722 00:37:30,680 --> 00:37:34,120 Speaker 14: EV market, where we've got game changing technology and power electronics, 723 00:37:34,440 --> 00:37:37,120 Speaker 14: and that market's been very strong for us. We're seeing 724 00:37:37,160 --> 00:37:41,600 Speaker 14: customers adapt our technology to deliver better performance vehicles. 725 00:37:41,840 --> 00:37:42,880 Speaker 4: So even if the EV. 726 00:37:42,800 --> 00:37:45,799 Speaker 14: Market is flatish, we're going to see real growth for 727 00:37:45,960 --> 00:37:50,240 Speaker 14: our capabilities in electric vehicles because of the technology trend shift. 728 00:37:51,719 --> 00:37:53,400 Speaker 4: Ben I want to go back to the supply chain. 729 00:37:54,480 --> 00:37:58,839 Speaker 6: Is India ready to be a great to contribute to 730 00:37:59,360 --> 00:38:03,600 Speaker 6: supply chains and SUMA electronics, the semiconductor industry and AI. 731 00:38:04,440 --> 00:38:08,920 Speaker 14: So there's definitely a significant investment in infrastructure that's required 732 00:38:09,000 --> 00:38:13,439 Speaker 14: in India and we're actually seeing that huge investment from 733 00:38:13,680 --> 00:38:17,319 Speaker 14: many OEMs and partners and supply chains to support it. 734 00:38:17,440 --> 00:38:19,280 Speaker 14: In fact, we've been asked by one of the largest 735 00:38:19,280 --> 00:38:23,280 Speaker 14: smartphone OEMs in the world to help train the Indian 736 00:38:23,320 --> 00:38:25,480 Speaker 14: supply chain to meet their needs. 737 00:38:25,960 --> 00:38:27,719 Speaker 4: So it's a great who's that. 738 00:38:28,960 --> 00:38:33,800 Speaker 14: We don't speak about our specific customers and supply chains 739 00:38:34,560 --> 00:38:37,759 Speaker 14: broadly or in public, but a very large smartphone manufacturer 740 00:38:37,800 --> 00:38:40,279 Speaker 14: is asking us to help train the supply chain to 741 00:38:40,280 --> 00:38:44,520 Speaker 14: bring them up from a capability perspective to enable their production. 742 00:38:45,520 --> 00:38:47,720 Speaker 5: Well, we want to thank you for being here in town. 743 00:38:47,880 --> 00:38:49,759 Speaker 5: Ringing the bell five years. 744 00:38:49,520 --> 00:38:52,239 Speaker 3: I think was the celebration of today of Element Solutions, 745 00:38:52,480 --> 00:38:54,640 Speaker 3: Ben Laclich, We thank you for your time. 746 00:39:03,320 --> 00:39:06,520 Speaker 6: For video game fans, the name Blizzard Entertainment was once 747 00:39:07,200 --> 00:39:11,800 Speaker 6: anonymous with perfection. The maker of StarCraft, Overwatch and World 748 00:39:11,840 --> 00:39:15,239 Speaker 6: of Warcraft forever changed the video game landscape. But then 749 00:39:15,880 --> 00:39:21,279 Speaker 6: its corporate parent, Activision started cracking down on Blizzard's proud autonomy. 750 00:39:21,480 --> 00:39:26,200 Speaker 6: It's all chronicled in a new book, Play Nice, the Rise, Full, 751 00:39:26,640 --> 00:39:30,759 Speaker 6: and Future of Blizzard Entertainment, and it's offered by Bloomberg 752 00:39:30,800 --> 00:39:35,960 Speaker 6: News's Jason Schreyer, who joins us now. Jason's congratulations. I 753 00:39:36,000 --> 00:39:39,560 Speaker 6: mean some of those titles, Diablo four in particular, in 754 00:39:39,640 --> 00:39:43,879 Speaker 6: more recent history, the fastest selling title. And then there's 755 00:39:43,920 --> 00:39:46,279 Speaker 6: the company story of everything that happened in the last 756 00:39:46,280 --> 00:39:47,040 Speaker 6: twelve months. 757 00:39:47,520 --> 00:39:48,719 Speaker 4: How'd you write a book about it? 758 00:39:49,960 --> 00:39:53,800 Speaker 1: Yeah? Man, I've been frantically rerating the ending over the 759 00:39:53,920 --> 00:39:56,640 Speaker 1: last couple of weeks. Yeah, it's quite a story. It's 760 00:39:56,640 --> 00:40:00,800 Speaker 1: a thirty three year history that I'm chronical in this book, 761 00:40:00,840 --> 00:40:04,799 Speaker 1: starting with two UCLA students who set out to start 762 00:40:04,840 --> 00:40:08,200 Speaker 1: a video game company and wound up building an empire 763 00:40:08,560 --> 00:40:12,680 Speaker 1: that became thousands of people, billions of dollars, and many, 764 00:40:12,719 --> 00:40:14,000 Speaker 1: many millions of fans. 765 00:40:14,800 --> 00:40:18,080 Speaker 3: Jason, You've written a couple of best selling books, so 766 00:40:18,440 --> 00:40:22,399 Speaker 3: I'm interested as to what sort of reception you tend 767 00:40:22,480 --> 00:40:24,640 Speaker 3: to get to these books. Who are the audience that 768 00:40:24,800 --> 00:40:27,840 Speaker 3: really gravitate towards these sort of journeys, these stories. Is 769 00:40:27,840 --> 00:40:30,120 Speaker 3: it ever an introduction to those that don't know that 770 00:40:30,280 --> 00:40:31,600 Speaker 3: much about the gaming industry. 771 00:40:32,840 --> 00:40:34,960 Speaker 1: Yeah, it's funny. My first two books were kind of 772 00:40:35,000 --> 00:40:37,560 Speaker 1: where there were anthologies including a bunch of stories, so 773 00:40:37,600 --> 00:40:39,560 Speaker 1: a lot of people could kind of glom onto them 774 00:40:39,600 --> 00:40:42,520 Speaker 1: and find an interesting story, a company that they had 775 00:40:42,520 --> 00:40:44,960 Speaker 1: heard of, or a game that they played. But I 776 00:40:44,960 --> 00:40:47,360 Speaker 1: also tried to make them appeal to the mainstream. And 777 00:40:47,400 --> 00:40:49,239 Speaker 1: with this one, I've tried even harder to make it 778 00:40:49,360 --> 00:40:50,680 Speaker 1: something that my mom would read. 779 00:40:50,680 --> 00:40:51,800 Speaker 4: And my mom hasn't read. 780 00:40:51,600 --> 00:40:54,640 Speaker 1: My first two books, but hopefully she'll read this one. Yes, 781 00:40:54,719 --> 00:40:56,080 Speaker 1: I think there are a lot of gamers out there 782 00:40:56,239 --> 00:40:58,719 Speaker 1: who will want to read this book, who will find 783 00:40:58,760 --> 00:41:00,680 Speaker 1: it interesting, who will get a lot out of the 784 00:41:00,680 --> 00:41:03,480 Speaker 1: behind the scenes details and the creative struggles and the 785 00:41:03,520 --> 00:41:06,800 Speaker 1: development stories and the games and just knowing the story 786 00:41:06,800 --> 00:41:10,239 Speaker 1: behind World of Warcraft and Overwatch and Hearthstone. But I 787 00:41:10,280 --> 00:41:12,560 Speaker 1: also think that it'll be really interesting to anyone who 788 00:41:12,640 --> 00:41:16,280 Speaker 1: is interested in kind of behind the scenes corporate stories, 789 00:41:16,320 --> 00:41:20,080 Speaker 1: stories like the social network, stories like Bad Blood, stories 790 00:41:20,080 --> 00:41:23,799 Speaker 1: that are about companies that grow and their cultures and 791 00:41:23,840 --> 00:41:26,880 Speaker 1: how they evolve and the kind of the trials and 792 00:41:26,920 --> 00:41:28,200 Speaker 1: tribulations along the way. 793 00:41:29,000 --> 00:41:31,160 Speaker 4: And the story keeps going behind the scenes. 794 00:41:31,200 --> 00:41:33,839 Speaker 6: Because the latest is YOU'RENNA fairies who ran the call 795 00:41:33,880 --> 00:41:36,960 Speaker 6: of duty business is now taking the helmet blizzard. 796 00:41:36,960 --> 00:41:38,799 Speaker 4: I think I'm right insane. Did you keep up with that? 797 00:41:40,640 --> 00:41:45,080 Speaker 1: Yes, my editor is waiting for me to send over 798 00:41:45,120 --> 00:41:47,880 Speaker 1: a revised version of the ending. Yeah, I'm spending in 799 00:41:47,880 --> 00:41:50,040 Speaker 1: the next couple of weeks kind of revising the ending, 800 00:41:50,680 --> 00:41:53,400 Speaker 1: changing a few things. And yes, unfortunately there was a 801 00:41:53,440 --> 00:41:56,120 Speaker 1: mass layoff and a game cancelation just a couple of 802 00:41:56,120 --> 00:41:59,560 Speaker 1: weeks ago, kind of a tragic way for the new 803 00:41:59,640 --> 00:42:03,040 Speaker 1: era of the company under Microsoft to begin. Microsoft, of 804 00:42:03,080 --> 00:42:05,880 Speaker 1: course purchase them for sixty nine billion dollars in a 805 00:42:05,920 --> 00:42:08,880 Speaker 1: deal that closed in October, and one of Microsoft's first 806 00:42:08,960 --> 00:42:12,919 Speaker 1: moves was to slash a bunch of jobs, So yes, 807 00:42:12,960 --> 00:42:15,640 Speaker 1: I will be incorporating that into the manuscript. But at 808 00:42:15,640 --> 00:42:17,880 Speaker 1: a certain point, yes, this book has to end, and 809 00:42:19,120 --> 00:42:21,920 Speaker 1: it'll probably it'll include up up through just about the 810 00:42:21,960 --> 00:42:24,280 Speaker 1: present day sequel. 811 00:42:24,560 --> 00:42:27,879 Speaker 3: Jason Shah, thank you so much spending some time with us, 812 00:42:28,320 --> 00:42:30,400 Speaker 3: and congratulations on the never ending book. 813 00:42:30,520 --> 00:42:31,480 Speaker 9: It's going to be a great read. 814 00:42:31,480 --> 00:42:33,640 Speaker 5: Meanwhile, that does it for the sedition of Blue Bag Technology. 815 00:42:34,719 --> 00:42:36,560 Speaker 6: Check out the pod. That's where you can find it. 816 00:42:36,880 --> 00:42:41,320 Speaker 6: This is blamebag Technology.