1 00:00:02,240 --> 00:00:05,600 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,880 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,920 --> 00:00:26,640 Speaker 1: Emily Jay I'm Emily Jenking, San Francisco, and this is 4 00:00:26,680 --> 00:00:29,400 Speaker 1: Bloomberg Technology. Coming up in the next hour stock slide 5 00:00:29,440 --> 00:00:32,680 Speaker 1: on a Bloomberg scoop that Apple plans to slow hiring 6 00:00:32,920 --> 00:00:35,800 Speaker 1: and spending. We've got the inside details on how the 7 00:00:35,800 --> 00:00:40,200 Speaker 1: iPhone maker plans to deal with the downturn. Plus Netflix 8 00:00:40,200 --> 00:00:43,000 Speaker 1: says it's late. A season of Stranger Things was even 9 00:00:43,000 --> 00:00:46,240 Speaker 1: bigger than expected, But can Netflix deliver In its earnings 10 00:00:46,280 --> 00:00:49,239 Speaker 1: report this week after a dismal start to the year, 11 00:00:49,640 --> 00:00:54,040 Speaker 1: Stranger Things have happened, and bitcoin rally's jumping as much 12 00:00:54,040 --> 00:00:56,720 Speaker 1: as seven percent to hit two dollars for the first 13 00:00:56,760 --> 00:01:00,520 Speaker 1: time in weeks. What's driving the crypto rebound? To this hour, 14 00:01:00,640 --> 00:01:04,039 Speaker 1: Apple plans just slow hiring and spending growth next year 15 00:01:04,120 --> 00:01:07,800 Speaker 1: in some divisions. This according to Bloomberg sources. Apple is 16 00:01:07,800 --> 00:01:13,080 Speaker 1: still planning an aggressive product launch schedule in including potentially 17 00:01:13,120 --> 00:01:16,440 Speaker 1: a new mixed reality headset. But this news about typically 18 00:01:16,480 --> 00:01:20,920 Speaker 1: recession resistant Apple taking investors by surprise. Mark German broke 19 00:01:20,959 --> 00:01:23,360 Speaker 1: the story and joins us now so Mark, what exactly 20 00:01:23,360 --> 00:01:27,080 Speaker 1: have you learned about Apple's plans, Emily, thank you for 21 00:01:27,080 --> 00:01:30,959 Speaker 1: having me. We learned that the company going into fiscale 22 00:01:31,200 --> 00:01:34,120 Speaker 1: is taking a more cautious approach to its investing and 23 00:01:34,200 --> 00:01:36,720 Speaker 1: spending when it comes to hiring. So you're gonna see 24 00:01:36,800 --> 00:01:40,840 Speaker 1: upon some departures over the next year or so, normal attrition. 25 00:01:41,000 --> 00:01:43,760 Speaker 1: Maybe Apple won't fill some of those rules in order 26 00:01:43,800 --> 00:01:46,360 Speaker 1: to save a little bit money money and be cautious there. 27 00:01:46,640 --> 00:01:49,600 Speaker 1: You're probably gonna see them have headcount even in many 28 00:01:49,720 --> 00:01:53,040 Speaker 1: teams instead of upgrading their headcount maybe between five and 29 00:01:53,080 --> 00:01:55,400 Speaker 1: ten and fifteen percent. You're also going to see them 30 00:01:55,400 --> 00:01:58,120 Speaker 1: spending a little bit less money in certain divisions as well. 31 00:01:58,360 --> 00:02:01,440 Speaker 1: This is all in preparation for this looming recession we've 32 00:02:01,440 --> 00:02:04,080 Speaker 1: talked about many times, and this economic downturn that people 33 00:02:04,120 --> 00:02:08,560 Speaker 1: are concerned about, coupled with inflation. So talk to us 34 00:02:08,560 --> 00:02:11,800 Speaker 1: about why the market is so surprised by this, are 35 00:02:11,840 --> 00:02:15,240 Speaker 1: concerned by this given that Apple, you know, whether the 36 00:02:15,240 --> 00:02:18,359 Speaker 1: pandemic pretty well also kind of a bell weather for 37 00:02:18,520 --> 00:02:22,520 Speaker 1: consumer sentiment. I think that's exactly right, because Apple is 38 00:02:22,520 --> 00:02:25,280 Speaker 1: a bell weather, right. I think that the market and 39 00:02:25,400 --> 00:02:28,960 Speaker 1: analysts and people who invest trust Apple to make decisions 40 00:02:28,960 --> 00:02:32,000 Speaker 1: ahead of time. If you remember when COVID nineteen started 41 00:02:32,040 --> 00:02:34,400 Speaker 1: to happen in the beginning of Apple was one of 42 00:02:34,440 --> 00:02:36,280 Speaker 1: the first to sort of take a stand and begin 43 00:02:36,320 --> 00:02:38,880 Speaker 1: closing their stores and begin putting measures in and begin 44 00:02:38,919 --> 00:02:42,000 Speaker 1: talking about that potential impact. Right. So Apple has shown 45 00:02:42,320 --> 00:02:44,960 Speaker 1: that it has good insight and good research to understand 46 00:02:45,200 --> 00:02:47,760 Speaker 1: when economic situations are going to happen. So I think 47 00:02:47,760 --> 00:02:50,359 Speaker 1: the market knows that and traded based on that. At 48 00:02:50,360 --> 00:02:53,160 Speaker 1: the same time, I don't think it's hugely surprising, given 49 00:02:53,160 --> 00:02:57,160 Speaker 1: that you've seen Meta and Tesla and Amazon and Microsoft 50 00:02:57,240 --> 00:02:59,919 Speaker 1: all makes similar moves. The differences is that Apple is 51 00:03:00,000 --> 00:03:02,119 Speaker 1: going to try to keep that internal instead of Tim 52 00:03:02,120 --> 00:03:04,960 Speaker 1: cook sending out a memo to the entire company detailing 53 00:03:04,960 --> 00:03:09,040 Speaker 1: their plans for when it comes to this economic downturn. 54 00:03:09,440 --> 00:03:12,320 Speaker 1: They are not going to announce that publicly, right. That's 55 00:03:12,320 --> 00:03:14,520 Speaker 1: why we're reporting it based on sources, just like you've 56 00:03:14,520 --> 00:03:17,840 Speaker 1: seen other companies do. Write. Apple doesn't seem to appear 57 00:03:18,120 --> 00:03:20,200 Speaker 1: to believe that they're going to have a major impact 58 00:03:20,280 --> 00:03:23,520 Speaker 1: on consumers because of this or employees. You're probably not 59 00:03:23,560 --> 00:03:25,440 Speaker 1: going to see layoffs here. You're probably not going to 60 00:03:25,520 --> 00:03:28,640 Speaker 1: see major changes to their product pipeline and their launch plans. 61 00:03:29,080 --> 00:03:31,640 Speaker 1: Like you mentioned, I am still expecting the announcement of 62 00:03:31,680 --> 00:03:34,640 Speaker 1: the first major new product category in eight years, a 63 00:03:34,720 --> 00:03:39,120 Speaker 1: mixed reality headset to happen sometime in There's also gonna 64 00:03:39,120 --> 00:03:42,000 Speaker 1: be big iPhone updates next year, Big Apple Watch updates, 65 00:03:42,160 --> 00:03:44,760 Speaker 1: a larger iPad, many new max So there's a lot 66 00:03:44,800 --> 00:03:46,960 Speaker 1: in store for next year. The company still wants to 67 00:03:46,960 --> 00:03:52,040 Speaker 1: get out to consumers. Meantime, Mark, there's another story you're following, 68 00:03:52,160 --> 00:03:57,440 Speaker 1: Apple being sued over pay and anti trust violations. Explain 69 00:03:57,520 --> 00:04:00,640 Speaker 1: to us what's happening here. This one's along time coming. 70 00:04:00,720 --> 00:04:03,520 Speaker 1: So basically, the way the iPhone works with Apple Pay 71 00:04:03,600 --> 00:04:06,320 Speaker 1: is that Apple is the only company that can have 72 00:04:06,560 --> 00:04:08,160 Speaker 1: tapped to pay so all from the phone. So you 73 00:04:08,200 --> 00:04:09,720 Speaker 1: know how you want to go to Whole Foods or 74 00:04:09,720 --> 00:04:12,000 Speaker 1: another place and you tap your phone on the reader 75 00:04:12,040 --> 00:04:14,520 Speaker 1: to make a payment, that's only through Apple Pay. So 76 00:04:14,640 --> 00:04:19,080 Speaker 1: that means that Square, PayPal, Chase, Amax, any financial provider, 77 00:04:19,160 --> 00:04:21,719 Speaker 1: you name it, they're not able to develop their own 78 00:04:21,760 --> 00:04:25,360 Speaker 1: application UH in order to use the NFC chip near 79 00:04:25,400 --> 00:04:27,720 Speaker 1: field communications chip that allows to have to pay on 80 00:04:27,720 --> 00:04:30,480 Speaker 1: the iPhone. So now you see this consortium of payment 81 00:04:30,480 --> 00:04:35,120 Speaker 1: companies through this class action lawsuit to benefit consumers. Right, 82 00:04:35,279 --> 00:04:38,159 Speaker 1: that is happening now. They're upset that Apple is keeping 83 00:04:38,200 --> 00:04:41,159 Speaker 1: that feature exclusive to its own service and then charging 84 00:04:41,160 --> 00:04:44,440 Speaker 1: what they say are higher than normal rates for consumers 85 00:04:44,520 --> 00:04:46,960 Speaker 1: to use that and those rates obviously being passed on 86 00:04:47,520 --> 00:04:51,360 Speaker 1: to the payment processing companies. Okay, Mark German will keep 87 00:04:51,400 --> 00:04:55,560 Speaker 1: the scoops coming. Thanks so much always for joining us. 88 00:05:04,480 --> 00:05:07,080 Speaker 1: In the next couple of decades, today's Internet will undergo 89 00:05:07,240 --> 00:05:12,120 Speaker 1: a multi trillion dollar transformation to an interconnected, three D 90 00:05:12,200 --> 00:05:15,760 Speaker 1: virtual world currently known as the metaverse, or so some 91 00:05:15,839 --> 00:05:20,279 Speaker 1: tech futurists say. Think virtual malls where we shop, play, work, 92 00:05:20,360 --> 00:05:23,559 Speaker 1: and more, all under the same roof. In his new book, 93 00:05:23,720 --> 00:05:27,240 Speaker 1: The Metaverse and How It Will Revolutionize Everything, a Billion 94 00:05:27,240 --> 00:05:30,520 Speaker 1: Co managing partner Matthew Ball offers a glimpse into this 95 00:05:30,560 --> 00:05:35,000 Speaker 1: new reality. Matthew joins us now from l A. So, Matthew, 96 00:05:35,080 --> 00:05:38,200 Speaker 1: the question is, when so much of the progress that 97 00:05:38,200 --> 00:05:41,080 Speaker 1: has been made on the so called metaverse so far 98 00:05:41,520 --> 00:05:45,200 Speaker 1: seems to be pretty basic. When are our lives going 99 00:05:45,240 --> 00:05:50,240 Speaker 1: to be quote unquote revolutionized? Well, so, we should keep 100 00:05:50,279 --> 00:05:53,320 Speaker 1: in mind that these technological transformations do take decades. I'm 101 00:05:53,320 --> 00:05:56,240 Speaker 1: glad that you emphasize that the first wireless cell phone 102 00:05:56,279 --> 00:05:58,960 Speaker 1: call in nineteen seventy three, the first data based wireless 103 00:05:59,000 --> 00:06:03,840 Speaker 1: network smartphones. Two the early two thousands we get the 104 00:06:03,880 --> 00:06:08,520 Speaker 1: first consumer media services on mobile devices blackberries. Thereafter the iPhone. 105 00:06:09,000 --> 00:06:11,679 Speaker 1: Some way through the next decade, most of the world 106 00:06:11,760 --> 00:06:15,000 Speaker 1: was running on mobile and cloud services. What's clear now 107 00:06:15,120 --> 00:06:17,200 Speaker 1: is that the advent of real time three D as 108 00:06:17,240 --> 00:06:20,359 Speaker 1: we talk about it in industrial applications, the advent of 109 00:06:20,640 --> 00:06:24,599 Speaker 1: x are in live patient surgery, and the fact that 110 00:06:24,720 --> 00:06:28,520 Speaker 1: hundreds of millions of people, typically under the ages, are 111 00:06:28,560 --> 00:06:32,640 Speaker 1: all living in three D worlds today. So not you 112 00:06:33,040 --> 00:06:36,520 Speaker 1: or me yet no offense talk to us then about 113 00:06:36,560 --> 00:06:41,200 Speaker 1: how this is going to change our daily lives. For example, 114 00:06:41,400 --> 00:06:44,479 Speaker 1: you know you you're joining us now remotely, would it 115 00:06:44,480 --> 00:06:47,120 Speaker 1: seem like you were here in the studio in this 116 00:06:47,200 --> 00:06:51,320 Speaker 1: new world. That's certainly one element. We see this in 117 00:06:51,360 --> 00:06:54,159 Speaker 1: particular emphasized by Meta where they talk about the idea 118 00:06:54,160 --> 00:06:57,520 Speaker 1: of co location and presence in virtual space. But in 119 00:06:57,560 --> 00:06:59,920 Speaker 1: some instances we will just be using some of the 120 00:07:00,000 --> 00:07:02,480 Speaker 1: devices we have right now, but we might be doing 121 00:07:02,520 --> 00:07:06,520 Speaker 1: those in three D what we call volumetric displays or holography. 122 00:07:06,720 --> 00:07:08,960 Speaker 1: You and I might be sitting thousands of miles apart 123 00:07:09,080 --> 00:07:12,080 Speaker 1: looking at a screen, but the actual presentation would be 124 00:07:12,120 --> 00:07:13,840 Speaker 1: in three D. And so he showed that that has 125 00:07:13,880 --> 00:07:18,480 Speaker 1: remarkable improvements on retention, engagement, non verbal forms of communication. 126 00:07:19,480 --> 00:07:23,080 Speaker 1: Now you've had your metavers cy t F now going 127 00:07:23,280 --> 00:07:25,880 Speaker 1: for several months, you've gotten you know, names like meta 128 00:07:25,920 --> 00:07:28,679 Speaker 1: in there. Not surprising. Also Snap, which I found interesting 129 00:07:28,680 --> 00:07:33,200 Speaker 1: because snaps view of the metaverse is so different from metas, 130 00:07:33,200 --> 00:07:36,400 Speaker 1: where you know, Evan Spiegel has called Mark Zuckerberg's vision 131 00:07:36,600 --> 00:07:39,800 Speaker 1: so hypothetical, and Snap is betting more on you know, 132 00:07:39,920 --> 00:07:44,880 Speaker 1: more sort of augmented reality over real physical reality. And 133 00:07:44,880 --> 00:07:48,480 Speaker 1: today Snap unveiled a new web version of Snap, which 134 00:07:48,480 --> 00:07:51,200 Speaker 1: almost seems like it's going backwards. How do we square 135 00:07:51,280 --> 00:07:55,360 Speaker 1: these two visions? The way that we square it is 136 00:07:55,400 --> 00:07:58,760 Speaker 1: by ignoring the term altogether. It's helpful to talk about 137 00:07:58,760 --> 00:08:01,480 Speaker 1: a new generation of the Internet. But you'll find that 138 00:08:01,560 --> 00:08:05,280 Speaker 1: because there's no concrete definition, some believe that it fundamentally 139 00:08:05,320 --> 00:08:09,720 Speaker 1: requires crypto. Others have VR centric beliefs, others have augmented 140 00:08:09,720 --> 00:08:13,600 Speaker 1: reality centric. Under the classical definition, where we're talking about 141 00:08:13,640 --> 00:08:16,760 Speaker 1: real time three D. All of those are likely to 142 00:08:16,800 --> 00:08:19,920 Speaker 1: fit in one way, shape or form. Evan might talk 143 00:08:19,960 --> 00:08:24,080 Speaker 1: about augmented reality lenses. Mark Zuckerberg might talk about a 144 00:08:24,280 --> 00:08:27,200 Speaker 1: virtual world with all of your other vision cut off. 145 00:08:27,800 --> 00:08:30,040 Speaker 1: That's still three D and they're still going to interconnect 146 00:08:30,080 --> 00:08:34,319 Speaker 1: in some way, shape or form. Now, let's talk about 147 00:08:34,320 --> 00:08:37,760 Speaker 1: how this changes the world of streaming. You know, you 148 00:08:37,800 --> 00:08:42,600 Speaker 1: were a long time former Amazon Studio executive. How does 149 00:08:42,640 --> 00:08:44,840 Speaker 1: this change the way we watch and what we watch 150 00:08:44,880 --> 00:08:48,240 Speaker 1: and how so? This is a great example of the 151 00:08:48,280 --> 00:08:52,600 Speaker 1: fact that we're already sitting in parts of this world today. Disney, 152 00:08:52,600 --> 00:08:56,160 Speaker 1: of course produced most of the Mandalorian using a game engine, 153 00:08:56,200 --> 00:08:59,440 Speaker 1: a real time three D simulation engine. That meant that 154 00:08:59,440 --> 00:09:02,240 Speaker 1: they could create the perfect sunset. They could hold that 155 00:09:02,360 --> 00:09:05,920 Speaker 1: sunset in place, they can pull out the entirety of 156 00:09:05,960 --> 00:09:08,680 Speaker 1: that virtual set, we shoot it in five years, or 157 00:09:08,800 --> 00:09:11,760 Speaker 1: make it available to you and I on our peloton 158 00:09:12,120 --> 00:09:16,240 Speaker 1: on a video game console in virtual or augmented reality. 159 00:09:16,520 --> 00:09:18,000 Speaker 1: That's one of the ways in which we're gonna start 160 00:09:18,040 --> 00:09:20,760 Speaker 1: to see entertainment change. You've seen that the match CEO 161 00:09:20,880 --> 00:09:24,360 Speaker 1: now comes from Zinga, and he in his new roles 162 00:09:24,400 --> 00:09:26,040 Speaker 1: talking about the idea that you might be able to 163 00:09:26,120 --> 00:09:29,839 Speaker 1: traps tattooing on a date rather than just play games 164 00:09:29,880 --> 00:09:34,160 Speaker 1: from a smartphone. Now Netflix earnings are coming up, We've 165 00:09:34,160 --> 00:09:37,079 Speaker 1: been talking a lot about the success of Stranger Things, 166 00:09:37,080 --> 00:09:40,240 Speaker 1: which is not necessarily a surprise. Even though it's scarier 167 00:09:40,240 --> 00:09:42,600 Speaker 1: and more gruesome than the last three seasons, I'm still 168 00:09:42,600 --> 00:09:45,280 Speaker 1: watching it. Um, what would you bet is going to 169 00:09:45,400 --> 00:09:47,120 Speaker 1: happen here? Do you think they're going to buck the 170 00:09:47,160 --> 00:09:48,920 Speaker 1: trend that we saw earlier this year? Are we're going 171 00:09:48,960 --> 00:09:52,599 Speaker 1: to see a slow degradation in the number of subscribers 172 00:09:52,640 --> 00:09:56,400 Speaker 1: for a while. It's clear by all streaming benchmarks that 173 00:09:56,480 --> 00:10:00,880 Speaker 1: Stranger Things season four was as exceptional as the fans 174 00:10:00,960 --> 00:10:04,440 Speaker 1: hoped in excess of what Netflix did, but also third 175 00:10:04,440 --> 00:10:07,120 Speaker 1: party analytics show that a lot of the subscriber editions 176 00:10:07,120 --> 00:10:09,840 Speaker 1: are weaker than we would have hoped for, and in particular, 177 00:10:09,920 --> 00:10:13,720 Speaker 1: churn looks worse. Antenna, a subscription analytics and data company, 178 00:10:14,080 --> 00:10:17,120 Speaker 1: shows that Netflix now ranked second last in terms of 179 00:10:17,240 --> 00:10:21,120 Speaker 1: subscriber retention after thirty days from sign up. They're also 180 00:10:21,160 --> 00:10:23,880 Speaker 1: had a four year high for the overall services churn 181 00:10:23,960 --> 00:10:26,960 Speaker 1: and retention, and so the numbers basically say that even 182 00:10:27,000 --> 00:10:29,440 Speaker 1: if it was a pretty strong quarter for ads, the 183 00:10:29,600 --> 00:10:34,560 Speaker 1: churn elevation is likely to offset them and more. Lord 184 00:10:34,559 --> 00:10:38,079 Speaker 1: of the Rings the new series. Jeff Bezos tweeted out 185 00:10:38,080 --> 00:10:40,280 Speaker 1: the trailer last week. Do you think it's gonna be 186 00:10:40,760 --> 00:10:43,920 Speaker 1: a mega hit like Stranger Things has been for Netflix? 187 00:10:45,120 --> 00:10:48,200 Speaker 1: Stranger Things came out in sixteen and it's still breaking 188 00:10:48,240 --> 00:10:52,400 Speaker 1: records seven years later. Defining by that degree is going 189 00:10:52,440 --> 00:10:54,000 Speaker 1: to take some time. But do I think that it's 190 00:10:54,040 --> 00:10:57,280 Speaker 1: going to premiere to outstanding viewership globally, that it's going 191 00:10:57,320 --> 00:10:59,520 Speaker 1: to cover the press, that it's going to be one 192 00:10:59,520 --> 00:11:02,320 Speaker 1: of the most magnificant things that Amazon overall does in 193 00:11:02,360 --> 00:11:08,839 Speaker 1: twenty two? Absolutely? So what's your take on the overall 194 00:11:08,880 --> 00:11:11,679 Speaker 1: tech market dynamics. You know, we've got this negative news 195 00:11:11,840 --> 00:11:15,320 Speaker 1: out from Apple that they're going to slow down spending growth, 196 00:11:15,360 --> 00:11:18,280 Speaker 1: that they're going to slow down hiring. Apple you know, 197 00:11:18,400 --> 00:11:22,120 Speaker 1: long considered a bell weather for consumer sentiment. Are you 198 00:11:22,160 --> 00:11:25,200 Speaker 1: taking that as a signal a bad signal for the 199 00:11:25,200 --> 00:11:29,880 Speaker 1: rest of big tech for the foreseeable future. It's not encouraging, 200 00:11:29,920 --> 00:11:34,199 Speaker 1: certainly when you take a look at how many other creators, founders, 201 00:11:34,200 --> 00:11:37,920 Speaker 1: products and services rely on the iPhone and the incremental 202 00:11:37,960 --> 00:11:41,920 Speaker 1: improvements from every device refresh. None of that's good. But 203 00:11:42,000 --> 00:11:45,079 Speaker 1: we're seeing this industry wide. Separate from Apple, the video 204 00:11:45,080 --> 00:11:48,280 Speaker 1: game industry was down nineteen year every year last month. 205 00:11:48,360 --> 00:11:51,040 Speaker 1: Year to date, it's trending at eleven year every year. 206 00:11:51,760 --> 00:11:56,480 Speaker 1: And so we're looking at a broad situation where consumer electronics, entertainment, leisure, 207 00:11:56,840 --> 00:12:00,559 Speaker 1: high end GPS from Nvidio are all getting rest. The 208 00:12:00,679 --> 00:12:03,400 Speaker 1: drop in the crypto markets is exacerbating that on a 209 00:12:03,440 --> 00:12:08,000 Speaker 1: demographic basis. All right, Matthew, always good to have you 210 00:12:08,080 --> 00:12:10,760 Speaker 1: here and excited about your new book, The Metaverse and 211 00:12:10,760 --> 00:12:15,400 Speaker 1: how it will revolutionize everything out tomorrow wherever you get 212 00:12:15,400 --> 00:12:20,280 Speaker 1: your books, Matthew, ball of a billion, Thank you. Coming up? 213 00:12:20,480 --> 00:12:23,360 Speaker 1: Could Elon Musk's bid for Twitter somehow be good for 214 00:12:23,400 --> 00:12:27,960 Speaker 1: Twitter's relationship with China. Our next guest thinks so. Strategy 215 00:12:28,040 --> 00:12:30,800 Speaker 1: Risks founder and CEO Isaac Stonefish is back to talk 216 00:12:30,840 --> 00:12:33,840 Speaker 1: to us about the future of China US tech relations 217 00:12:34,200 --> 00:13:09,600 Speaker 1: and more. This is Bloomberg, the world's biggest maker of 218 00:13:09,920 --> 00:13:12,960 Speaker 1: batteries for electric cars, is considering at least two locations 219 00:13:13,000 --> 00:13:16,960 Speaker 1: in Mexico for a manufacturing plan. China's Contemporary and Paris 220 00:13:17,040 --> 00:13:21,040 Speaker 1: Technology could be positioning itself to help Tesla and Forward 221 00:13:21,600 --> 00:13:24,280 Speaker 1: grow their eving market share in North America. The potential 222 00:13:24,320 --> 00:13:27,320 Speaker 1: sites are near the Texas border, according to Bloomberg sources, 223 00:13:27,360 --> 00:13:29,880 Speaker 1: and the company is planning to invest as much as 224 00:13:29,960 --> 00:13:35,360 Speaker 1: five billion dollars in this project. Meantime, China is facing 225 00:13:35,360 --> 00:13:38,360 Speaker 1: a slew of new challenges as its economy buckles amidst 226 00:13:38,360 --> 00:13:42,720 Speaker 1: stringent COVID zero policies. There are ongoing protests at housing projects, 227 00:13:42,720 --> 00:13:45,880 Speaker 1: for example, in more than fifty cities, with residents refusing 228 00:13:45,880 --> 00:13:49,680 Speaker 1: to pay their mortgage payments, and typically vibrant Hong Kong 229 00:13:49,760 --> 00:13:53,319 Speaker 1: is struggling to recruit and retain new talent. So how 230 00:13:53,320 --> 00:13:55,080 Speaker 1: will this all impact the tech sector? I want to 231 00:13:55,080 --> 00:13:57,400 Speaker 1: bring in Isaac Stonefish, the founder and CEO of Strategy 232 00:13:57,520 --> 00:14:00,400 Speaker 1: Risks that works with companies to assess their risk atxposure 233 00:14:01,000 --> 00:14:03,360 Speaker 1: to China, and thank you's been It's been a while, Isaac. 234 00:14:03,400 --> 00:14:04,839 Speaker 1: Is so good to have you back here on the show. 235 00:14:05,000 --> 00:14:07,040 Speaker 1: I mean, when you look at China right now, is 236 00:14:07,040 --> 00:14:09,120 Speaker 1: it still a good place to put your money? I 237 00:14:09,160 --> 00:14:12,520 Speaker 1: think it depends what better options you have, And certainly 238 00:14:12,600 --> 00:14:14,000 Speaker 1: there's a lot of other places in the world, a 239 00:14:14,000 --> 00:14:16,480 Speaker 1: lot of industries, a lot of other sectors that have 240 00:14:17,040 --> 00:14:20,400 Speaker 1: more minimal China exposure. I think for so long people 241 00:14:20,400 --> 00:14:23,880 Speaker 1: have been miss pricing the risk of investments in China, 242 00:14:24,080 --> 00:14:26,200 Speaker 1: and now that the risks are so much more clear, 243 00:14:26,680 --> 00:14:31,840 Speaker 1: they're able to step back and say, oops, right, is 244 00:14:31,880 --> 00:14:34,320 Speaker 1: the center of gravity in the texting moving? Is it 245 00:14:34,440 --> 00:14:36,840 Speaker 1: moving from you know, Beijing to Hong Kong, or from 246 00:14:36,840 --> 00:14:42,840 Speaker 1: Hong Kong to Singapore for example, where conditions are more predictable. 247 00:14:43,480 --> 00:14:45,120 Speaker 1: I think a lot of people in the tex Sing 248 00:14:45,320 --> 00:14:49,600 Speaker 1: like the idea of it being decentralized, especially the more 249 00:14:49,800 --> 00:14:54,760 Speaker 1: bitcoin e of the folks. I think the China certainly 250 00:14:54,920 --> 00:14:57,240 Speaker 1: is the center of the tex sing in Asia, but 251 00:14:57,640 --> 00:15:00,240 Speaker 1: it's really too early to say whether or not they 252 00:15:00,240 --> 00:15:02,160 Speaker 1: can never have a global tech scene. I mean, Chinese 253 00:15:02,240 --> 00:15:06,360 Speaker 1: entrepreneurs have long succeeded despite the Chinese Communist Party and 254 00:15:06,360 --> 00:15:09,040 Speaker 1: despite the conditions of China as opposed to because of 255 00:15:09,600 --> 00:15:13,280 Speaker 1: and as their space grows narrower and narrower, I think 256 00:15:13,320 --> 00:15:15,480 Speaker 1: we are going to see more of an exodus of 257 00:15:15,520 --> 00:15:17,400 Speaker 1: talent to other parts of the world. Do you think 258 00:15:17,600 --> 00:15:20,240 Speaker 1: the COVID policies will have a long term impact, like 259 00:15:20,280 --> 00:15:22,800 Speaker 1: will this be an inflection point. I think it definitely 260 00:15:22,840 --> 00:15:26,200 Speaker 1: could be there. There's a metaphor going around China of 261 00:15:26,280 --> 00:15:28,360 Speaker 1: the guy stepping on someone else's neck and a lot 262 00:15:28,360 --> 00:15:30,240 Speaker 1: of people going around thinking, Okay, how do we get 263 00:15:30,280 --> 00:15:31,640 Speaker 1: this guy to breathe? What can we do? What can 264 00:15:31,680 --> 00:15:33,880 Speaker 1: we do? And the solution is take your foot off 265 00:15:33,880 --> 00:15:37,600 Speaker 1: the neck. So it's been a long period of strangulation 266 00:15:37,760 --> 00:15:41,920 Speaker 1: of China's economy. There's huge emotional damages of the cruel 267 00:15:42,280 --> 00:15:44,280 Speaker 1: lockdown that they've had, and yeah, I think that will 268 00:15:44,280 --> 00:15:47,320 Speaker 1: have really long term effects. Meantime, you've got companies like TikTok, 269 00:15:47,520 --> 00:15:52,480 Speaker 1: for example, just continuing to thrive. And obviously you know 270 00:15:52,600 --> 00:15:57,000 Speaker 1: parent company is Bite Dance. And do you think that 271 00:15:57,480 --> 00:15:59,880 Speaker 1: US tech company US social media companies will ever be 272 00:15:59,920 --> 00:16:02,160 Speaker 1: a to catch up. I think they will. I think 273 00:16:02,160 --> 00:16:05,480 Speaker 1: they certainly might. And I think the game that TikTok 274 00:16:05,600 --> 00:16:08,800 Speaker 1: is playing is how can it seem as un Chinese 275 00:16:08,840 --> 00:16:12,280 Speaker 1: as possible in the United States? And the more it 276 00:16:12,320 --> 00:16:15,480 Speaker 1: gets tarred with its association with the Chinese Communist Party, 277 00:16:15,600 --> 00:16:18,680 Speaker 1: the better it will be for Meta and Google and 278 00:16:18,720 --> 00:16:23,120 Speaker 1: Microsoft and frankly even Oracle. So you live some interesting 279 00:16:23,600 --> 00:16:26,800 Speaker 1: analysis on this whole elon Musk Twitter debate, and that 280 00:16:26,920 --> 00:16:30,960 Speaker 1: you think that Elon Musk's potential involvement in Twitter, or 281 00:16:31,040 --> 00:16:33,040 Speaker 1: you know, the drama in general could be good for 282 00:16:33,080 --> 00:16:36,000 Speaker 1: Twitter's relationship with China, which is interesting given that Twitter 283 00:16:36,040 --> 00:16:37,920 Speaker 1: has been blocked in China since two thousand nine or 284 00:16:37,920 --> 00:16:40,360 Speaker 1: two thousand and ten when I was living there. Um, 285 00:16:40,400 --> 00:16:44,000 Speaker 1: what do you mean, Musk, For someone who's such a 286 00:16:44,000 --> 00:16:47,800 Speaker 1: free speech avatar, has this massive blind spot when it 287 00:16:47,800 --> 00:16:52,120 Speaker 1: comes to China and refuses to criticize China the Chinese 288 00:16:52,160 --> 00:16:54,960 Speaker 1: Communist Party in a way that's especially egregious for someone 289 00:16:55,000 --> 00:16:58,080 Speaker 1: who's so open and no holds barred with so many 290 00:16:58,080 --> 00:17:02,840 Speaker 1: other people, And it feels like employees of Twitter will 291 00:17:02,920 --> 00:17:06,399 Speaker 1: read between the lines, or we'll listen to directives that say, Okay, 292 00:17:06,400 --> 00:17:09,640 Speaker 1: we don't need to be so aggressive and labeling Chinese 293 00:17:09,640 --> 00:17:12,120 Speaker 1: accounts linked to state media. We don't need to push 294 00:17:12,119 --> 00:17:14,000 Speaker 1: back against this kind of information, We don't need to 295 00:17:14,040 --> 00:17:17,880 Speaker 1: see this as misinformation. And hey, Tesla's in China. Why 296 00:17:17,880 --> 00:17:20,960 Speaker 1: can't Twitter be in China and make a lot of 297 00:17:20,960 --> 00:17:25,040 Speaker 1: the ethical sacrifices that Musk has made Visa VI Tesla 298 00:17:25,200 --> 00:17:28,280 Speaker 1: in China. Interesting, So you think if Elon Musk takes 299 00:17:28,359 --> 00:17:31,680 Speaker 1: over Twitter and does the deal as he promised that 300 00:17:32,400 --> 00:17:34,240 Speaker 1: it could be an entree for Twitter back into China. 301 00:17:34,400 --> 00:17:37,200 Speaker 1: I think it certainly can be. Now, I don't think 302 00:17:37,200 --> 00:17:39,320 Speaker 1: that's necessarily going to be good for Twitter's bottom line, 303 00:17:39,400 --> 00:17:44,600 Speaker 1: it will certainly change the way the social media platform works. 304 00:17:44,720 --> 00:17:46,840 Speaker 1: I think we see Tesla on one side, which is 305 00:17:46,880 --> 00:17:49,639 Speaker 1: heavily exposed to China. We have SpaceX on the other side, 306 00:17:49,640 --> 00:17:52,639 Speaker 1: which is heavily hived off from China. You have Musk 307 00:17:52,640 --> 00:17:55,200 Speaker 1: and other board members linking them, and I think Twitter 308 00:17:55,240 --> 00:17:57,680 Speaker 1: will fit somewhere in between. But I think it's possible 309 00:17:57,720 --> 00:18:00,159 Speaker 1: that they might fit closer to the Tesla model than 310 00:18:00,200 --> 00:18:02,840 Speaker 1: the SpaceX model. And how optimistic are you about the 311 00:18:02,840 --> 00:18:05,800 Speaker 1: future of Tesla in China, especially given all of these 312 00:18:05,960 --> 00:18:10,600 Speaker 1: broader economic concerns. I think it depends on how far 313 00:18:10,920 --> 00:18:14,199 Speaker 1: Musk is willing to bend. And there's a lot of 314 00:18:14,240 --> 00:18:17,200 Speaker 1: concerns in China about Tesla as a national security threat 315 00:18:17,200 --> 00:18:20,480 Speaker 1: because all the data that it collects. And I assume 316 00:18:20,680 --> 00:18:23,960 Speaker 1: that Musk will be very happy to continue yielding to 317 00:18:24,080 --> 00:18:27,960 Speaker 1: the Chinese Communist Party with sharing data, with doing things 318 00:18:27,960 --> 00:18:30,800 Speaker 1: like opening a showroom in shin Jong the region of 319 00:18:30,880 --> 00:18:33,040 Speaker 1: northwest China, where upwards of a million Muslims have been 320 00:18:33,040 --> 00:18:36,720 Speaker 1: in concentration camps. I think will continue to see similar behavior. 321 00:18:36,960 --> 00:18:39,160 Speaker 1: I think that, frankly, the thing that would be most 322 00:18:39,200 --> 00:18:41,880 Speaker 1: likely to change it if Musk decides to be more 323 00:18:41,920 --> 00:18:44,720 Speaker 1: heavily involved with politics in the United States and thinks, well, 324 00:18:44,760 --> 00:18:46,480 Speaker 1: this is just too much of a liability for me. 325 00:18:46,560 --> 00:18:48,960 Speaker 1: But I don't see that as very likely. This along 326 00:18:48,960 --> 00:18:52,240 Speaker 1: with concerns about TikTok and how TikTok handles data of 327 00:18:52,359 --> 00:18:54,720 Speaker 1: its users and whether or not it's shared with the 328 00:18:54,840 --> 00:18:57,960 Speaker 1: Chinese government, what's your take? No question that that it 329 00:18:58,000 --> 00:19:00,119 Speaker 1: can be shared with the Chinese government, that there's no way, 330 00:19:00,200 --> 00:19:02,760 Speaker 1: I think what people need to understand. And this transitions 331 00:19:02,800 --> 00:19:05,520 Speaker 1: to another even darker topic. But if the US and 332 00:19:05,600 --> 00:19:08,960 Speaker 1: trying to go to war over Taiwan or highlands in 333 00:19:09,000 --> 00:19:11,640 Speaker 1: the East or the South Sea, or Vietnam or any 334 00:19:11,640 --> 00:19:16,119 Speaker 1: other country in the region, all of Chinese companies and 335 00:19:16,200 --> 00:19:19,240 Speaker 1: US companies will be viewed by some his enemy combatants. 336 00:19:19,320 --> 00:19:23,920 Speaker 1: And the threat with TikTok is less. That someone's using 337 00:19:23,960 --> 00:19:26,359 Speaker 1: TikTok in New Jersey and the Chinese Commuist Party is 338 00:19:26,400 --> 00:19:29,800 Speaker 1: watching that in real time. But the way that that data, 339 00:19:29,920 --> 00:19:34,520 Speaker 1: that information, that location tracking can be weaponized if Beijing 340 00:19:34,680 --> 00:19:39,360 Speaker 1: so chooses dark. Indeed, thank you for taking us there, 341 00:19:39,600 --> 00:19:42,119 Speaker 1: uh and for joining us here in the studio, Isaac 342 00:19:42,119 --> 00:19:45,000 Speaker 1: Stone Fish of strateg g Risk always get to have 343 00:19:45,080 --> 00:19:48,040 Speaker 1: you here. Thanks for having me. Speaking of Twitter, some 344 00:19:48,160 --> 00:19:52,560 Speaker 1: headlines just crossing now about Twitter's dispute with Elon Musk, 345 00:19:52,640 --> 00:19:56,760 Speaker 1: Twitter dismissing Musk's complaints that he doesn't have enough information 346 00:19:56,800 --> 00:20:00,240 Speaker 1: about spam and bought accounts, Twitter saying the complaints are 347 00:20:00,440 --> 00:20:04,879 Speaker 1: a irrelevant quote sideshow urging a judge to hold a 348 00:20:04,920 --> 00:20:09,760 Speaker 1: trial as soon as possible over his proposed cancelation of 349 00:20:09,800 --> 00:20:13,840 Speaker 1: this deal. We're expecting that hearing the first hearing in 350 00:20:14,280 --> 00:20:27,240 Speaker 1: this legal saga Tuesday. Despite the major success of the 351 00:20:27,320 --> 00:20:30,560 Speaker 1: latest season of Stranger Things, Netflix investors have been bracing 352 00:20:30,680 --> 00:20:34,119 Speaker 1: for subscriber losses. Shares are down more than six this 353 00:20:34,200 --> 00:20:37,119 Speaker 1: year as the streaming space gets more competitive and inflation 354 00:20:37,200 --> 00:20:41,040 Speaker 1: is forced consumers to be more selective. But shares jump 355 00:20:41,119 --> 00:20:43,360 Speaker 1: to kick off the week ahead of earnings. Bloomberg's Local 356 00:20:43,400 --> 00:20:45,919 Speaker 1: show covers all things streaming for us, So why are 357 00:20:46,000 --> 00:20:49,040 Speaker 1: shares climbing ahead of what's expected to be a not 358 00:20:49,160 --> 00:20:54,639 Speaker 1: so great report, optimism that things will be better than expected. 359 00:20:54,800 --> 00:20:57,160 Speaker 1: You know, Netflix said forecast that they would lose two 360 00:20:57,200 --> 00:20:59,240 Speaker 1: million subscribers in the quarter, which would be their worst 361 00:20:59,280 --> 00:21:02,240 Speaker 1: quarter ever. It would also mean that for the year 362 00:21:02,359 --> 00:21:04,640 Speaker 1: they would have lost two point two million. I think 363 00:21:04,680 --> 00:21:09,080 Speaker 1: there's some optimism, based on reporting and third party analysis 364 00:21:09,200 --> 00:21:12,960 Speaker 1: and just the kind of obvious success of Stranger Things 365 00:21:13,000 --> 00:21:16,560 Speaker 1: that maybe they'll lose five thousand or a million instead 366 00:21:16,600 --> 00:21:18,600 Speaker 1: of two million. I also think that, you know, the 367 00:21:18,720 --> 00:21:21,320 Speaker 1: last time around, Netflix recorded earnings and throw a lot 368 00:21:21,320 --> 00:21:23,800 Speaker 1: of information at people, and they've done a better job 369 00:21:23,840 --> 00:21:25,800 Speaker 1: over the last couple of months of trying to explain 370 00:21:25,840 --> 00:21:28,959 Speaker 1: what some of that means. You know, there's been some 371 00:21:29,000 --> 00:21:32,960 Speaker 1: talk about, you know, changing the the binge watching strategy, 372 00:21:33,080 --> 00:21:37,320 Speaker 1: releasing episodes weekly for example. Do you think there's a 373 00:21:37,440 --> 00:21:39,360 Speaker 1: chance that could happen, I mean, I guess Stranger Things 374 00:21:39,400 --> 00:21:43,320 Speaker 1: have happened, right un intended. Yeah, they're already starting it 375 00:21:43,960 --> 00:21:46,800 Speaker 1: with with the release of Stranger Things and and what 376 00:21:46,880 --> 00:21:49,159 Speaker 1: Casa de Papel and Ozark. They've they've gone with this 377 00:21:49,320 --> 00:21:53,720 Speaker 1: batch approach where they'll release a season in two installments, say, 378 00:21:53,720 --> 00:21:55,600 Speaker 1: instead of all at once, and I think you'll see 379 00:21:55,600 --> 00:21:57,639 Speaker 1: a lot more of that or maybe in in three 380 00:21:58,040 --> 00:22:00,000 Speaker 1: I don't think you'll ever see Netflix or at least 381 00:22:00,000 --> 00:22:02,280 Speaker 1: not anytime soon go with kind of the weekly model 382 00:22:02,320 --> 00:22:04,800 Speaker 1: that's been popularized in a lot of pv But they 383 00:22:04,840 --> 00:22:08,040 Speaker 1: are seeing a benefit in say, releasing four to six 384 00:22:08,080 --> 00:22:11,040 Speaker 1: episodes at a time, uh and then spacing it out 385 00:22:11,080 --> 00:22:13,400 Speaker 1: because it reduces the number of people who are canceling. 386 00:22:13,400 --> 00:22:15,280 Speaker 1: If they know that they have the show that they like, 387 00:22:15,440 --> 00:22:17,639 Speaker 1: that they're gonna need to stick with Netflix for at 388 00:22:17,680 --> 00:22:20,240 Speaker 1: least two or three months. Did you know they did 389 00:22:20,240 --> 00:22:22,920 Speaker 1: that with Ozark too. Has it worked? I mean, as 390 00:22:22,920 --> 00:22:27,280 Speaker 1: a viewer, I found it incredibly frustrating. Well, that frustration 391 00:22:27,359 --> 00:22:29,440 Speaker 1: is why they haven't done it until now, because they've 392 00:22:29,440 --> 00:22:31,520 Speaker 1: conditioned all these people to just get to watch it 393 00:22:31,560 --> 00:22:34,199 Speaker 1: all at once. I think what you see, based on 394 00:22:34,240 --> 00:22:36,680 Speaker 1: some of the third party data at least and and 395 00:22:36,720 --> 00:22:39,200 Speaker 1: on the data that Netflix puts out, is there is 396 00:22:39,240 --> 00:22:42,520 Speaker 1: a secondary spike in viewership, and that seems like a 397 00:22:42,560 --> 00:22:44,480 Speaker 1: good thing if your desire is to make sure that 398 00:22:44,480 --> 00:22:46,919 Speaker 1: people are coming back to Netflix on a regular basis. 399 00:22:48,000 --> 00:22:51,000 Speaker 1: You know, there's also some reporting about who growing more 400 00:22:51,040 --> 00:22:54,879 Speaker 1: than even Disney Plus itself, and of course Disney is 401 00:22:54,920 --> 00:22:58,800 Speaker 1: a big stakeholder in who what are these clues telling 402 00:22:58,880 --> 00:23:04,240 Speaker 1: us about what consumers want and what services? Are you know, 403 00:23:04,840 --> 00:23:06,720 Speaker 1: going to trunk them all? Yeah? I mean the important 404 00:23:06,720 --> 00:23:08,440 Speaker 1: thing to keep in mind on that Hulu report is 405 00:23:08,480 --> 00:23:10,840 Speaker 1: that it's specific to the US UH and so, and 406 00:23:10,920 --> 00:23:14,960 Speaker 1: it's from a third party data. So who may be 407 00:23:15,040 --> 00:23:16,960 Speaker 1: doing better than Disney Plus right now in the In 408 00:23:17,000 --> 00:23:20,159 Speaker 1: the U s Disney Plus is still larger than Hulu 409 00:23:20,200 --> 00:23:23,399 Speaker 1: by a lot, especially worldwide. Hulu is only US only, 410 00:23:23,400 --> 00:23:26,040 Speaker 1: and so the question looming over Disney is is are 411 00:23:26,080 --> 00:23:28,080 Speaker 1: they going to end up buying comcasts out of it 412 00:23:28,119 --> 00:23:30,480 Speaker 1: and folding it into Disney Plus. Do they want to 413 00:23:30,520 --> 00:23:32,840 Speaker 1: keep it independent. That being said, whul has been on 414 00:23:32,880 --> 00:23:35,320 Speaker 1: a really good streak of programming um and is one 415 00:23:35,359 --> 00:23:37,960 Speaker 1: of the reasons why you've seen Netflix stumble a bit. 416 00:23:38,160 --> 00:23:42,000 Speaker 1: Is these other services, namely Disney Plus, HBO Max and 417 00:23:42,040 --> 00:23:45,240 Speaker 1: Apple TV Plus and to some extent, Hulu, have given 418 00:23:45,240 --> 00:23:47,879 Speaker 1: consumers a lot of alternatives online. And I think it 419 00:23:48,000 --> 00:23:50,320 Speaker 1: used to be that Netflix was the default for most 420 00:23:50,320 --> 00:23:52,679 Speaker 1: people if they wanted to watch TV, at least if 421 00:23:52,680 --> 00:23:56,240 Speaker 1: they wanted to stream and that's just not the case anymore. Meantime, 422 00:23:56,320 --> 00:23:59,680 Speaker 1: you've got Amazon coming out with Lord of the Rings, 423 00:24:00,520 --> 00:24:04,800 Speaker 1: long anticipated. Who stands to gain the most from, you know, 424 00:24:04,880 --> 00:24:08,879 Speaker 1: a potential decline in Netflix subscribers. Is it Disney plus, 425 00:24:09,400 --> 00:24:13,040 Speaker 1: is it Amazon? It'll probably be spread across a number 426 00:24:13,080 --> 00:24:15,480 Speaker 1: of players. You know, Disney has already benefited a bunch 427 00:24:15,520 --> 00:24:19,120 Speaker 1: and hopes to continue to do so. HBO Max has 428 00:24:19,160 --> 00:24:21,560 Speaker 1: been in a really good group with programming and has 429 00:24:21,600 --> 00:24:25,080 Speaker 1: grown at a study clip. You know, Paramount uh is 430 00:24:25,119 --> 00:24:27,399 Speaker 1: actually one of the fastest growing services, at least in 431 00:24:27,440 --> 00:24:29,760 Speaker 1: the US. You know, Amazon has been at it for 432 00:24:29,800 --> 00:24:32,879 Speaker 1: as long as Netflix and has really been a second 433 00:24:32,920 --> 00:24:35,280 Speaker 1: or third fiddle to them the whole time. They are 434 00:24:35,359 --> 00:24:37,800 Speaker 1: trying to to kind of get their act together. Lord 435 00:24:37,800 --> 00:24:39,719 Speaker 1: of the Rings is the biggest swing and they certainly 436 00:24:39,720 --> 00:24:41,720 Speaker 1: hope that that works. At the same time, you've got 437 00:24:41,760 --> 00:24:44,399 Speaker 1: another tech giant in Apple that some would argue has 438 00:24:44,440 --> 00:24:46,680 Speaker 1: done a better job of programming over the last couple 439 00:24:46,680 --> 00:24:49,720 Speaker 1: of years. All right, Well, lots to keep watching with 440 00:24:50,040 --> 00:24:53,440 Speaker 1: Netflix results out later this week are very on Lukashaw. 441 00:24:53,600 --> 00:24:56,920 Speaker 1: Thank you Lucas as always for joining us. Well. Next 442 00:24:56,960 --> 00:24:59,960 Speaker 1: to streaming, one of the industries. Perhaps most profoundly changed 443 00:25:00,119 --> 00:25:03,320 Speaker 1: by the pandemic has been healthcare, accelerating the progress of 444 00:25:03,359 --> 00:25:07,520 Speaker 1: telemedicine and more able Partners is a women let investment 445 00:25:07,560 --> 00:25:10,200 Speaker 1: fund supporting early stage brands that focus on making the 446 00:25:10,320 --> 00:25:14,640 Speaker 1: daily lives of consumers happier and healthier. And they just 447 00:25:14,880 --> 00:25:17,760 Speaker 1: ran a study on how gen Z in particular is 448 00:25:17,840 --> 00:25:21,439 Speaker 1: navigating the new complexities of healthcare. Founding partner Amanda Alien 449 00:25:21,640 --> 00:25:24,320 Speaker 1: joins me. Now, Amanda, thank you so much for being 450 00:25:24,320 --> 00:25:26,000 Speaker 1: here so talk to us about this report and what 451 00:25:26,080 --> 00:25:31,119 Speaker 1: surprised you most about gen Z. Well, thanks for having me, Emily. 452 00:25:31,320 --> 00:25:34,320 Speaker 1: I think the most surprising finding by far is the 453 00:25:34,359 --> 00:25:37,640 Speaker 1: fact that this generation gen Z, they might not want 454 00:25:37,680 --> 00:25:39,520 Speaker 1: to go back to the office full time, but they 455 00:25:39,560 --> 00:25:42,159 Speaker 1: seem to want to see their healthcare providers in person. 456 00:25:42,560 --> 00:25:45,200 Speaker 1: When we asked them their preferred communication method for their 457 00:25:45,200 --> 00:25:49,600 Speaker 1: healthcare providers, they chose in person communication well above any 458 00:25:49,600 --> 00:25:53,320 Speaker 1: other form of communication. And looked at another way, we 459 00:25:53,400 --> 00:25:56,760 Speaker 1: asked them their top criteria when choosing a healthcare provider, 460 00:25:57,160 --> 00:26:01,359 Speaker 1: and they chose convenient location as their top criteria, and 461 00:26:01,400 --> 00:26:04,800 Speaker 1: telehealth capabilities were actually last in the survey. So when 462 00:26:04,800 --> 00:26:07,440 Speaker 1: you look at the amount of funding. Yeah, So does 463 00:26:07,480 --> 00:26:10,800 Speaker 1: that mean we should you should be lesting investing less 464 00:26:10,800 --> 00:26:13,000 Speaker 1: in telehealth? Well, I think when we dig a little 465 00:26:13,000 --> 00:26:15,639 Speaker 1: deeper into those findings, we find that the preference is 466 00:26:15,680 --> 00:26:19,920 Speaker 1: really for a hybrid solution. So while they they want 467 00:26:19,960 --> 00:26:22,840 Speaker 1: to meet their healthcare provider in person, when we ask 468 00:26:22,920 --> 00:26:25,159 Speaker 1: them how they want to how often they want to 469 00:26:25,200 --> 00:26:28,000 Speaker 1: hear back from their provider, the majority of respondents expect 470 00:26:28,040 --> 00:26:30,840 Speaker 1: to hear back from providers within a few hours when 471 00:26:30,840 --> 00:26:33,280 Speaker 1: they have a question or a concern. So they're really 472 00:26:33,280 --> 00:26:36,360 Speaker 1: looking for the convenience of digital channels while still having 473 00:26:36,359 --> 00:26:39,560 Speaker 1: the opportunity to make an in person connection. So well, 474 00:26:39,640 --> 00:26:43,040 Speaker 1: I think it's true that the telehealth revolution has been 475 00:26:43,080 --> 00:26:46,320 Speaker 1: oversold for this generation, there is a role for it, 476 00:26:46,400 --> 00:26:49,440 Speaker 1: and I think when you start looking at specific specialties, 477 00:26:49,440 --> 00:26:52,280 Speaker 1: perhaps mental healthcare, there could be even a larger role. 478 00:26:53,040 --> 00:26:56,359 Speaker 1: So healthcare is operating and not just a post COVID 479 00:26:56,440 --> 00:27:01,520 Speaker 1: but also now a post ROW world. Are the trends 480 00:27:01,560 --> 00:27:04,200 Speaker 1: that stem from that. When we think about the impact 481 00:27:04,280 --> 00:27:07,320 Speaker 1: of the job's decision, that obviously has the largest impact 482 00:27:07,359 --> 00:27:12,280 Speaker 1: directly on providers of telehealth abortions, and they've seen increase 483 00:27:12,320 --> 00:27:15,320 Speaker 1: in demand as well as increased risks and liabilities as 484 00:27:15,359 --> 00:27:18,080 Speaker 1: a result of that decision. But when you think about 485 00:27:18,119 --> 00:27:21,000 Speaker 1: the broader impact, it actually has the potential to make 486 00:27:21,440 --> 00:27:24,800 Speaker 1: employment and investment more or less appealing in any number 487 00:27:24,840 --> 00:27:28,639 Speaker 1: of states. So if you're in Austin or Miami, I 488 00:27:28,680 --> 00:27:31,600 Speaker 1: think you you have a recruiting disadvantage at this point. 489 00:27:31,680 --> 00:27:34,560 Speaker 1: In our survey, we found that nearly half of gen 490 00:27:34,640 --> 00:27:37,720 Speaker 1: Z women were somewhat or very unlikely to take a 491 00:27:37,800 --> 00:27:40,119 Speaker 1: job in a state that had restricted abortion rights, and 492 00:27:40,119 --> 00:27:43,280 Speaker 1: that number with for men. So when you're an employer 493 00:27:43,280 --> 00:27:46,639 Speaker 1: and you're looking at potentially of your future workforce not 494 00:27:46,720 --> 00:27:49,160 Speaker 1: wanting to work in your state, it doesn't matter where 495 00:27:49,160 --> 00:27:52,320 Speaker 1: you stand on the political divide. That's just a business decision. 496 00:27:52,480 --> 00:27:55,639 Speaker 1: And so I think the secondary impact of that is 497 00:27:55,800 --> 00:27:58,840 Speaker 1: we will see further move towards permanent work from home 498 00:27:58,880 --> 00:28:02,760 Speaker 1: policies and companies that are able to optimize a distributor workforce, 499 00:28:02,840 --> 00:28:05,959 Speaker 1: we'll continue to have advantages. Interesting, all right, thank you 500 00:28:06,040 --> 00:28:07,680 Speaker 1: so much for joining us to tell us all about it. 501 00:28:07,760 --> 00:28:11,560 Speaker 1: Able Partners founding partner Amanda Alien appreciate it. Coming up. 502 00:28:11,640 --> 00:28:15,880 Speaker 1: Bitcoin and all coins rallying after the June crypto wipe out. 503 00:28:15,880 --> 00:28:19,200 Speaker 1: We're going to talk about why next. This is Bloomberg 504 00:28:42,360 --> 00:28:45,480 Speaker 1: time now for our crypto reported Bitcoin rallying to start 505 00:28:45,480 --> 00:28:48,680 Speaker 1: the week at one point, trading above for the first 506 00:28:48,680 --> 00:28:51,920 Speaker 1: time since early June and testing the upper bound of 507 00:28:51,960 --> 00:28:54,560 Speaker 1: the tight range where it's been stuck for the last month, 508 00:28:54,880 --> 00:28:58,440 Speaker 1: and smaller tokens are All coins also having a good day, 509 00:28:58,480 --> 00:29:01,960 Speaker 1: even outperforming Bitcoin. You can see here Ether extending a 510 00:29:02,040 --> 00:29:04,640 Speaker 1: rally that began last week after developers of the Ethereum 511 00:29:04,680 --> 00:29:07,920 Speaker 1: blockchain gave a target for their software update projected to 512 00:29:08,240 --> 00:29:12,040 Speaker 1: lower the network's energy usage, the long awaited merge, and 513 00:29:12,200 --> 00:29:17,280 Speaker 1: other coins like Avalanche, Polygone, Cardono all in the green. 514 00:29:17,400 --> 00:29:18,720 Speaker 1: I want to talk about all this and more with 515 00:29:18,720 --> 00:29:22,360 Speaker 1: Bloomberg's Hannah Miller. So Hannah, first of all, why are 516 00:29:22,400 --> 00:29:27,920 Speaker 1: we seeing Bitcoin and other coins rallying right now? Yeah, Well, 517 00:29:27,960 --> 00:29:30,880 Speaker 1: there's been some space in between, uh you know, this 518 00:29:30,960 --> 00:29:35,000 Speaker 1: rally here and the freezing of withdrawals at Celsius, which 519 00:29:35,040 --> 00:29:39,280 Speaker 1: we saw a huge downturn in price um for cryptocurrencies 520 00:29:39,680 --> 00:29:45,600 Speaker 1: in mid June, and Bitcoin is you know, sparking trader's interests. 521 00:29:45,640 --> 00:29:49,040 Speaker 1: There is hope that maybe they Bitcoin will break out 522 00:29:49,080 --> 00:29:52,160 Speaker 1: of this nineteen thousand dollars to twenty two thousand dollar range, 523 00:29:52,720 --> 00:29:56,200 Speaker 1: and for ether in particular among all coins. News of 524 00:29:56,240 --> 00:29:59,560 Speaker 1: the merge that can happen as soon as September has 525 00:29:59,640 --> 00:30:03,000 Speaker 1: really sparked interests in etherorium again. And yet we had 526 00:30:03,040 --> 00:30:07,080 Speaker 1: a guest last week that called etherium a giant Panzi scheme. 527 00:30:07,360 --> 00:30:10,520 Speaker 1: What do you make of that? Yeah, there's always going 528 00:30:10,560 --> 00:30:14,280 Speaker 1: to be skepticism in this industry. There are people who 529 00:30:14,360 --> 00:30:18,680 Speaker 1: are concerned about the safety and the risks that you 530 00:30:18,720 --> 00:30:24,800 Speaker 1: know defive poses two investors um so with especially in 531 00:30:25,000 --> 00:30:28,080 Speaker 1: light of like the what's happening with Celsius and what's 532 00:30:28,080 --> 00:30:30,920 Speaker 1: happening with therrs capital and the freezing of withdrawals at 533 00:30:30,960 --> 00:30:33,520 Speaker 1: various crypto lenders. This has put a lot of people 534 00:30:33,560 --> 00:30:36,440 Speaker 1: on edge within the industry. Let's talk about that. There 535 00:30:36,480 --> 00:30:39,320 Speaker 1: are some new developments when it comes to three arrows 536 00:30:39,400 --> 00:30:42,360 Speaker 1: this you know, big Crypto Hedge Fund, as well as 537 00:30:42,400 --> 00:30:45,959 Speaker 1: the Celsius bankruptcy, and you know, all of this amidst 538 00:30:46,000 --> 00:30:51,920 Speaker 1: calls for more regulation. Yes, we have a fuller picture 539 00:30:52,080 --> 00:30:55,000 Speaker 1: of what's happening here with the collapse of three Hours Capital. 540 00:30:55,440 --> 00:30:58,880 Speaker 1: Um we got a more detailed list today of creditors, 541 00:30:58,920 --> 00:31:01,840 Speaker 1: and it's a pretty interesting list. There are some really 542 00:31:01,880 --> 00:31:05,000 Speaker 1: big names in the industry on their like Digital Currency Group, 543 00:31:05,440 --> 00:31:08,160 Speaker 1: and also one of the co founders, through ours Capital's 544 00:31:08,240 --> 00:31:11,760 Speaker 1: wife actually has a has a claim in So it's 545 00:31:11,760 --> 00:31:15,360 Speaker 1: pretty interesting to see how interconnected this industry is. And 546 00:31:15,440 --> 00:31:20,120 Speaker 1: we're still getting details emerging about Celsius, about there's Capital 547 00:31:20,520 --> 00:31:24,040 Speaker 1: and it we're still entangling sort of this web here 548 00:31:24,080 --> 00:31:27,720 Speaker 1: of what's happening all right, Bloomberg's Hannah Miller, Hannah, thank 549 00:31:27,760 --> 00:31:31,440 Speaker 1: you so much for all of those updates. Speaking of 550 00:31:31,560 --> 00:31:33,920 Speaker 1: distress to crypto firms, the rise and fall of companies 551 00:31:33,920 --> 00:31:36,920 Speaker 1: like Celsius and others has sparked calls for more legislation 552 00:31:37,040 --> 00:31:40,880 Speaker 1: and regulation in the crypto space overall. Here's what Marty Chavez, 553 00:31:40,960 --> 00:31:43,720 Speaker 1: vice chair and partner at six Street and recently appointed 554 00:31:44,000 --> 00:31:46,440 Speaker 1: as a member of the Alphabet Board, had to say 555 00:31:46,440 --> 00:31:51,720 Speaker 1: about that earlier on Bloomberg Television. Regrettably, we usually wait 556 00:31:51,840 --> 00:31:56,800 Speaker 1: until some calamity before there is regulation, and the questions 557 00:31:56,840 --> 00:31:59,960 Speaker 1: always was this calamity big enough for does their need 558 00:32:00,040 --> 00:32:03,360 Speaker 1: to be another way down before we have the appropriate regulation. 559 00:32:04,880 --> 00:32:06,920 Speaker 1: My next guest who joins us now, Sheila Warren, is 560 00:32:06,920 --> 00:32:09,200 Speaker 1: the CEO of the Crypto Council for Innovation, and she 561 00:32:09,200 --> 00:32:12,320 Speaker 1: founded the World Economic Forums, Blockchain and Digital Assets teams. 562 00:32:12,320 --> 00:32:15,640 Speaker 1: So Sheila, Look, there's been a lot of big red 563 00:32:15,680 --> 00:32:19,400 Speaker 1: flags Celsius three arrows. You heard what Marti Chavez, They're said, 564 00:32:19,400 --> 00:32:24,160 Speaker 1: they're about regulation. Are we behind? Are we waiting for 565 00:32:24,200 --> 00:32:26,440 Speaker 1: a calamity? You know that we're waiting for a calamity. 566 00:32:26,480 --> 00:32:28,040 Speaker 1: I find that a bit dramatic. I mean, I think 567 00:32:28,040 --> 00:32:30,680 Speaker 1: we've seen a number of cycles and waves in this industry. 568 00:32:30,720 --> 00:32:32,840 Speaker 1: You know, I've been in this space for seven years now, 569 00:32:32,880 --> 00:32:35,239 Speaker 1: and this is not the first time we've seen a 570 00:32:35,240 --> 00:32:38,080 Speaker 1: big crash followed by a pretty quick rally. And I 571 00:32:38,080 --> 00:32:40,800 Speaker 1: think you're kinda mentioned earlier that we are starting to 572 00:32:40,800 --> 00:32:42,800 Speaker 1: see a little bit of that rally start to happen 573 00:32:42,920 --> 00:32:46,200 Speaker 1: in market sing were confidence in these alternative assets. So 574 00:32:46,200 --> 00:32:47,840 Speaker 1: so I don't know that anyone's waiting for a calamity. 575 00:32:47,960 --> 00:32:51,240 Speaker 1: I think there's been enough attention placeless industry, I would 576 00:32:51,240 --> 00:32:53,880 Speaker 1: say unduly placed in some cases in this industry, and 577 00:32:53,920 --> 00:32:56,280 Speaker 1: skepticism around it that I think there's been a lot 578 00:32:56,320 --> 00:32:59,200 Speaker 1: of attention already paid. What do you think is driving 579 00:32:59,200 --> 00:33:02,320 Speaker 1: this rally? And does it last. I mean, it just 580 00:33:02,440 --> 00:33:05,480 Speaker 1: seems to be bad news everywhere else when it comes 581 00:33:05,480 --> 00:33:07,520 Speaker 1: to the economy. Well, I think that's right. I think 582 00:33:07,520 --> 00:33:10,080 Speaker 1: we're part of a there's a broader market melt on happening. 583 00:33:10,080 --> 00:33:12,720 Speaker 1: And I actually think it's pretty profound that you're seeing 584 00:33:12,720 --> 00:33:14,760 Speaker 1: these individual coins that are starting to kind of turn 585 00:33:14,800 --> 00:33:17,520 Speaker 1: around and uh and pick up a little bit. So, 586 00:33:17,720 --> 00:33:19,480 Speaker 1: you know, Etherory and I think Canada and nails that 587 00:33:19,520 --> 00:33:21,040 Speaker 1: I think it really is about the merge is the 588 00:33:21,120 --> 00:33:23,880 Speaker 1: idea that this has been waiting a long time coming. 589 00:33:23,880 --> 00:33:25,560 Speaker 1: You know, people have been talking about the merge since 590 00:33:25,560 --> 00:33:27,920 Speaker 1: Etherory it was first launched, and the idea that there 591 00:33:27,920 --> 00:33:30,600 Speaker 1: could be this transition from what's called proof of steak 592 00:33:30,680 --> 00:33:32,760 Speaker 1: to proof a from a work rather to proof of steak. 593 00:33:33,200 --> 00:33:36,960 Speaker 1: I should note that it's a N nine reduction and 594 00:33:37,000 --> 00:33:38,800 Speaker 1: the use of energy. It's not just a ten percent 595 00:33:38,920 --> 00:33:41,600 Speaker 1: or two percent reduction. It's a massive reduction and energy. 596 00:33:41,960 --> 00:33:44,320 Speaker 1: Energy has been a big talking point for some folks 597 00:33:44,320 --> 00:33:46,520 Speaker 1: in this space. So I do think people are excited 598 00:33:46,560 --> 00:33:48,760 Speaker 1: to see not even so much about the energy usage, 599 00:33:48,760 --> 00:33:52,600 Speaker 1: with the fact that this major technology change can be achieved. 600 00:33:53,080 --> 00:33:55,800 Speaker 1: It's complicated, it's really hard to do the details, and 601 00:33:55,800 --> 00:33:58,560 Speaker 1: that the building these systems are are so complex. But 602 00:33:58,640 --> 00:34:00,640 Speaker 1: here we are, for the first time really seeing this 603 00:34:00,840 --> 00:34:03,240 Speaker 1: massive change in the way that infrastructure is going to run. 604 00:34:03,600 --> 00:34:05,160 Speaker 1: But I think it's kind of proof that, you know, 605 00:34:05,200 --> 00:34:07,560 Speaker 1: you give it time, these things are gonna thrive. I 606 00:34:07,600 --> 00:34:10,319 Speaker 1: have to ask you that about these comments that we 607 00:34:10,400 --> 00:34:14,239 Speaker 1: got last week from the founder of Tesso's, who you know, 608 00:34:14,320 --> 00:34:17,319 Speaker 1: basically called Ethereum a giant Ponzi scheme. I mean, you've 609 00:34:17,320 --> 00:34:20,800 Speaker 1: got major skeptics, not just outside the industry but inside 610 00:34:21,160 --> 00:34:23,520 Speaker 1: the industry who don't believe in it. So I think 611 00:34:23,520 --> 00:34:25,680 Speaker 1: one thing that's important to note about cryptos it tends 612 00:34:25,680 --> 00:34:28,080 Speaker 1: to be pretty tribal. So you do have folks that 613 00:34:28,120 --> 00:34:30,640 Speaker 1: have kind of picked their token, they picked their team, 614 00:34:30,719 --> 00:34:32,799 Speaker 1: and they're going to talk about their team as being 615 00:34:32,840 --> 00:34:35,040 Speaker 1: the best team. And look, I mean or to stage 616 00:34:35,040 --> 00:34:37,799 Speaker 1: of innovation. Like with any industry, there are a bunch 617 00:34:37,840 --> 00:34:41,000 Speaker 1: of options. They have some similarities, they have some differences, 618 00:34:41,040 --> 00:34:44,080 Speaker 1: in some cases pretty significant differences. And you know, I'm 619 00:34:44,080 --> 00:34:46,080 Speaker 1: agnostic about this. I don't know the market is going 620 00:34:46,120 --> 00:34:48,680 Speaker 1: to decide which of these things winds up being really 621 00:34:48,680 --> 00:34:51,160 Speaker 1: sticky and taking off. And which doesn't. I think it's 622 00:34:51,239 --> 00:34:53,759 Speaker 1: natural to have contraction, natural to have some of these 623 00:34:53,760 --> 00:34:55,560 Speaker 1: things are going to fail, right, some are gonna grow. 624 00:34:55,760 --> 00:34:58,719 Speaker 1: So it's normal to me to see somebody who might 625 00:34:58,760 --> 00:35:02,359 Speaker 1: be favoring a different opportunity talking about other opportunities with 626 00:35:02,400 --> 00:35:04,799 Speaker 1: a negative frame. And I think you'll see that this 627 00:35:04,840 --> 00:35:06,759 Speaker 1: happens quite a bit in the industry as people talk 628 00:35:06,760 --> 00:35:10,799 Speaker 1: about projects that aren't theirs, tribalism. Indeed, where are you 629 00:35:11,200 --> 00:35:14,080 Speaker 1: on the big debate about whether crypto is is a 630 00:35:14,080 --> 00:35:18,120 Speaker 1: security or a commodity, because obviously that has major implications 631 00:35:18,160 --> 00:35:21,719 Speaker 1: for how all of this is regulated and invested in. Yeah, 632 00:35:21,960 --> 00:35:23,560 Speaker 1: this say is I think the debate of the age 633 00:35:23,640 --> 00:35:25,799 Speaker 1: right now. And you're seeing a lot of activity on 634 00:35:25,880 --> 00:35:28,800 Speaker 1: the hill also with Mika and the European Parliament Europe 635 00:35:28,840 --> 00:35:30,880 Speaker 1: about this about this topic as well, kind of defining 636 00:35:30,920 --> 00:35:33,560 Speaker 1: like what is the classification of this asset, which is 637 00:35:33,600 --> 00:35:36,080 Speaker 1: determined not only who regulates it, but some of the 638 00:35:36,160 --> 00:35:38,480 Speaker 1: rules of engagement, What are you allowed to do? How 639 00:35:38,520 --> 00:35:41,120 Speaker 1: ownerous sort of disclosures when today happen, you know, all 640 00:35:41,160 --> 00:35:42,640 Speaker 1: that kind of thing and will shape the way that's 641 00:35:42,680 --> 00:35:44,880 Speaker 1: really continted to develop. So so my view is that 642 00:35:44,960 --> 00:35:47,560 Speaker 1: most things do start off, I think, to some degree 643 00:35:48,040 --> 00:35:50,440 Speaker 1: in a somewhat centralized fashion, and simply because you do 644 00:35:50,560 --> 00:35:53,920 Speaker 1: have a group of people who are engaging in that build. 645 00:35:54,200 --> 00:35:56,800 Speaker 1: But I do think we've seen several that over time 646 00:35:56,880 --> 00:36:00,359 Speaker 1: have really evolved to be pretty decentralized. Now, the how 647 00:36:00,400 --> 00:36:02,880 Speaker 1: we test, which is what determines whether or not something 648 00:36:03,000 --> 00:36:06,120 Speaker 1: is a security, does have a prong that talks about 649 00:36:06,400 --> 00:36:09,360 Speaker 1: the engagement of others. Right, how much does the activity 650 00:36:09,400 --> 00:36:13,239 Speaker 1: of one or a group of people really affect the 651 00:36:13,480 --> 00:36:15,440 Speaker 1: effort there are efforts? How does that affect the nature 652 00:36:15,520 --> 00:36:17,200 Speaker 1: of the build, of the project, of the of the 653 00:36:17,239 --> 00:36:20,480 Speaker 1: price of all those kinds of things. And in decentralized systems, 654 00:36:20,760 --> 00:36:23,239 Speaker 1: there's an argument to be made that's really strong that 655 00:36:23,280 --> 00:36:26,440 Speaker 1: there's not such engagement from any individual or even group 656 00:36:26,680 --> 00:36:29,160 Speaker 1: that's going to affect the way that the thing tends 657 00:36:29,200 --> 00:36:31,760 Speaker 1: to tends to land, tends to grow, tends to be shaped. 658 00:36:31,800 --> 00:36:34,239 Speaker 1: And so I do think we probably pretty pretty strong 659 00:36:34,280 --> 00:36:37,600 Speaker 1: idea of bitcoin and ether commodities other things being developed 660 00:36:37,600 --> 00:36:39,719 Speaker 1: and and happening right now. But we're going to get 661 00:36:39,760 --> 00:36:41,640 Speaker 1: to a place, I think, or more and more decentralization 662 00:36:41,760 --> 00:36:43,879 Speaker 1: is the is the norm. All right, Well, we will 663 00:36:43,920 --> 00:36:46,279 Speaker 1: be watching every twist in turn to see how that 664 00:36:46,320 --> 00:36:49,000 Speaker 1: debate plays out. Crypto Council for Innovation CEO Sheila Warre 665 00:36:49,040 --> 00:36:58,759 Speaker 1: and she looked great to have you back here. It 666 00:36:58,840 --> 00:37:00,640 Speaker 1: is a big week for the courts and the integrity 667 00:37:00,640 --> 00:37:03,680 Speaker 1: of m and A. Twitter has responded to Elon Musk, 668 00:37:03,719 --> 00:37:06,640 Speaker 1: I had of Tuesday's big hearing Bloomberg, Jeff Peely joins 669 00:37:06,719 --> 00:37:10,840 Speaker 1: us now from Wilmington, Delaware where this hearing will go down, 670 00:37:11,080 --> 00:37:14,040 Speaker 1: and Jeff who joins us now on the phone. Elon 671 00:37:14,120 --> 00:37:17,480 Speaker 1: Musk responded to Twitter suits saying he needed more time 672 00:37:18,040 --> 00:37:20,680 Speaker 1: to to prove his argument in court that Twitter was 673 00:37:20,719 --> 00:37:23,359 Speaker 1: trying to rush and off to skate things. Twitter has 674 00:37:23,360 --> 00:37:26,680 Speaker 1: now responded to what Elon Musk had to stay, Where 675 00:37:26,719 --> 00:37:29,239 Speaker 1: do things stand right now? Well, you know, it's just 676 00:37:29,320 --> 00:37:34,520 Speaker 1: a battle of two sides. Twitter today basically said that 677 00:37:35,160 --> 00:37:40,680 Speaker 1: Mr Musk's arguments that they hadn't turned over enough information 678 00:37:40,800 --> 00:37:43,840 Speaker 1: on the spam and robot bots within their customer base 679 00:37:44,960 --> 00:37:50,040 Speaker 1: was quote basically irrelevant and irrelevant. Side show close quote 680 00:37:50,400 --> 00:37:52,719 Speaker 1: that he knew all along how many bots there were 681 00:37:53,560 --> 00:37:57,520 Speaker 1: and this is a pretext to walk away. Um basically 682 00:37:57,560 --> 00:38:00,279 Speaker 1: we're at the stage now where the judges to have 683 00:38:00,320 --> 00:38:04,279 Speaker 1: to decide whether to fast track it and you know, 684 00:38:04,520 --> 00:38:07,600 Speaker 1: go for a trial in September or trial in February 685 00:38:07,719 --> 00:38:11,400 Speaker 1: or somewhere in between. Now, in another twist, the judge 686 00:38:11,680 --> 00:38:14,960 Speaker 1: who's going to run this hearing actually has COVID. So 687 00:38:15,000 --> 00:38:16,680 Speaker 1: the hearing is I understand it was supposed to be 688 00:38:16,719 --> 00:38:18,680 Speaker 1: in person, is still going to happen, but it's gonna 689 00:38:18,719 --> 00:38:21,040 Speaker 1: be on zoom. Is that right? Yeah, that's right. But 690 00:38:21,120 --> 00:38:22,960 Speaker 1: we've had a little boom let down here of the 691 00:38:22,960 --> 00:38:27,240 Speaker 1: new variant. So judge Judge sent a letter out today 692 00:38:27,280 --> 00:38:31,480 Speaker 1: saying she had been tested positive. We were pretty pretty 693 00:38:31,600 --> 00:38:34,880 Speaker 1: uh familiar with this. We did. We did zoom hearings 694 00:38:34,880 --> 00:38:36,759 Speaker 1: for the better part of two years down here, so 695 00:38:36,800 --> 00:38:40,120 Speaker 1: it'll be fine. So what exactly is going to happen 696 00:38:40,200 --> 00:38:44,800 Speaker 1: at this hearing? What will the judge decide? So Twitter 697 00:38:44,880 --> 00:38:48,880 Speaker 1: has asked to basically what's called fast track it's lawsuit 698 00:38:49,760 --> 00:38:53,879 Speaker 1: and uh, you know that doesn't give you any specifics 699 00:38:53,880 --> 00:38:57,359 Speaker 1: in terms of how fast, but it means months rather 700 00:38:57,440 --> 00:39:01,520 Speaker 1: than years. And Twitter says that every day that passes 701 00:39:01,600 --> 00:39:05,360 Speaker 1: with the cloud over its shares is harming the company's value, 702 00:39:05,400 --> 00:39:09,600 Speaker 1: so that's why they're pushing for a UH sped up 703 00:39:09,640 --> 00:39:12,800 Speaker 1: trial for September nine. Mr Musk, on the other hand, 704 00:39:13,360 --> 00:39:16,080 Speaker 1: says that the case is way too complicated to try 705 00:39:16,120 --> 00:39:20,799 Speaker 1: to compress UH discovery pre trial information exchanges to that 706 00:39:20,960 --> 00:39:26,279 Speaker 1: kind of UH period and it really needs, you know, 707 00:39:27,120 --> 00:39:29,640 Speaker 1: to be spread out to The trial should be held 708 00:39:29,640 --> 00:39:32,920 Speaker 1: in February of next year. My suspicion is the judge 709 00:39:32,920 --> 00:39:37,520 Speaker 1: will come down somewhere between those two gates. Jeff Felia, 710 00:39:37,560 --> 00:39:40,360 Speaker 1: Bloomberg News in Delaware, who will be covering this hearing 711 00:39:40,360 --> 00:39:43,480 Speaker 1: for us, Thanks so much, Jess. As always, will stay 712 00:39:43,480 --> 00:39:44,880 Speaker 1: tuned to your reporting. And that does it for this 713 00:39:45,000 --> 00:39:48,200 Speaker 1: edition of Bloomberg Technology. Tomorrow we're gonna hear from Gerber 714 00:39:48,239 --> 00:39:53,240 Speaker 1: Kawasaki CEO, Ross Gerber, big investor in Netflix, and tessel 715 00:39:53,320 --> 00:39:56,359 Speaker 1: Hilla help us breakdown Netflix results. And as always, don't 716 00:39:56,360 --> 00:39:59,360 Speaker 1: forget to check out our podcast wherever you get your podcasts. 717 00:39:59,400 --> 00:40:02,000 Speaker 1: I'm Emily ch in San Francisco. This is Bloomberg