Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay I'm Emily Jenking, San Francisco, and this is
Speaker 1: Bloomberg Technology. Coming up in the next hour stock slide
Speaker 1: on a Bloomberg scoop that Apple plans to slow hiring
Speaker 1: and spending. We've got the inside details on how the
Speaker 1: iPhone maker plans to deal with the downturn. Plus Netflix
Speaker 1: says it's late. A season of Stranger Things was even
Speaker 1: bigger than expected, But can Netflix deliver In its earnings
Speaker 1: report this week after a dismal start to the year,
Speaker 1: Stranger Things have happened, and bitcoin rally's jumping as much
Speaker 1: as seven percent to hit two dollars for the first
Speaker 1: time in weeks. What's driving the crypto rebound? To this hour,
Speaker 1: Apple plans just slow hiring and spending growth next year
Speaker 1: in some divisions. This according to Bloomberg sources. Apple is
Speaker 1: still planning an aggressive product launch schedule in including potentially
Speaker 1: a new mixed reality headset. But this news about typically
Speaker 1: recession resistant Apple taking investors by surprise. Mark German broke
Speaker 1: the story and joins us now so Mark, what exactly
Speaker 1: have you learned about Apple's plans, Emily, thank you for
Speaker 1: having me. We learned that the company going into fiscale
Speaker 1: is taking a more cautious approach to its investing and
Speaker 1: spending when it comes to hiring. So you're gonna see
Speaker 1: upon some departures over the next year or so, normal attrition.
Speaker 1: Maybe Apple won't fill some of those rules in order
Speaker 1: to save a little bit money money and be cautious there.
Speaker 1: You're probably gonna see them have headcount even in many
Speaker 1: teams instead of upgrading their headcount maybe between five and
Speaker 1: ten and fifteen percent. You're also going to see them
Speaker 1: spending a little bit less money in certain divisions as well.
Speaker 1: This is all in preparation for this looming recession we've
Speaker 1: talked about many times, and this economic downturn that people
Speaker 1: are concerned about, coupled with inflation. So talk to us
Speaker 1: about why the market is so surprised by this, are
Speaker 1: concerned by this given that Apple, you know, whether the
Speaker 1: pandemic pretty well also kind of a bell weather for
Speaker 1: consumer sentiment. I think that's exactly right, because Apple is
Speaker 1: a bell weather, right. I think that the market and
Speaker 1: analysts and people who invest trust Apple to make decisions
Speaker 1: ahead of time. If you remember when COVID nineteen started
Speaker 1: to happen in the beginning of Apple was one of
Speaker 1: the first to sort of take a stand and begin
Speaker 1: closing their stores and begin putting measures in and begin
Speaker 1: talking about that potential impact. Right. So Apple has shown
Speaker 1: that it has good insight and good research to understand
Speaker 1: when economic situations are going to happen. So I think
Speaker 1: the market knows that and traded based on that. At
Speaker 1: the same time, I don't think it's hugely surprising, given
Speaker 1: that you've seen Meta and Tesla and Amazon and Microsoft
Speaker 1: all makes similar moves. The differences is that Apple is
Speaker 1: going to try to keep that internal instead of Tim
Speaker 1: cook sending out a memo to the entire company detailing
Speaker 1: their plans for when it comes to this economic downturn.
Speaker 1: They are not going to announce that publicly, right. That's
Speaker 1: why we're reporting it based on sources, just like you've
Speaker 1: seen other companies do. Write. Apple doesn't seem to appear
Speaker 1: to believe that they're going to have a major impact
Speaker 1: on consumers because of this or employees. You're probably not
Speaker 1: going to see layoffs here. You're probably not going to
Speaker 1: see major changes to their product pipeline and their launch plans.
Speaker 1: Like you mentioned, I am still expecting the announcement of
Speaker 1: the first major new product category in eight years, a
Speaker 1: mixed reality headset to happen sometime in There's also gonna
Speaker 1: be big iPhone updates next year, Big Apple Watch updates,
Speaker 1: a larger iPad, many new max So there's a lot
Speaker 1: in store for next year. The company still wants to
Speaker 1: get out to consumers. Meantime, Mark, there's another story you're following,
Speaker 1: Apple being sued over pay and anti trust violations. Explain
Speaker 1: to us what's happening here. This one's along time coming.
Speaker 1: So basically, the way the iPhone works with Apple Pay
Speaker 1: is that Apple is the only company that can have
Speaker 1: tapped to pay so all from the phone. So you
Speaker 1: know how you want to go to Whole Foods or
Speaker 1: another place and you tap your phone on the reader
Speaker 1: to make a payment, that's only through Apple Pay. So
Speaker 1: that means that Square, PayPal, Chase, Amax, any financial provider,
Speaker 1: you name it, they're not able to develop their own
Speaker 1: application UH in order to use the NFC chip near
Speaker 1: field communications chip that allows to have to pay on
Speaker 1: the iPhone. So now you see this consortium of payment
Speaker 1: companies through this class action lawsuit to benefit consumers. Right,
Speaker 1: that is happening now. They're upset that Apple is keeping
Speaker 1: that feature exclusive to its own service and then charging
Speaker 1: what they say are higher than normal rates for consumers
Speaker 1: to use that and those rates obviously being passed on
Speaker 1: to the payment processing companies. Okay, Mark German will keep
Speaker 1: the scoops coming. Thanks so much always for joining us.
Speaker 1: In the next couple of decades, today's Internet will undergo
Speaker 1: a multi trillion dollar transformation to an interconnected, three D
Speaker 1: virtual world currently known as the metaverse, or so some
Speaker 1: tech futurists say. Think virtual malls where we shop, play, work,
Speaker 1: and more, all under the same roof. In his new book,
Speaker 1: The Metaverse and How It Will Revolutionize Everything, a Billion
Speaker 1: Co managing partner Matthew Ball offers a glimpse into this
Speaker 1: new reality. Matthew joins us now from l A. So, Matthew,
Speaker 1: the question is, when so much of the progress that
Speaker 1: has been made on the so called metaverse so far
Speaker 1: seems to be pretty basic. When are our lives going
Speaker 1: to be quote unquote revolutionized? Well, so, we should keep
Speaker 1: in mind that these technological transformations do take decades. I'm
Speaker 1: glad that you emphasize that the first wireless cell phone
Speaker 1: call in nineteen seventy three, the first data based wireless
Speaker 1: network smartphones. Two the early two thousands we get the
Speaker 1: first consumer media services on mobile devices blackberries. Thereafter the iPhone.
Speaker 1: Some way through the next decade, most of the world
Speaker 1: was running on mobile and cloud services. What's clear now
Speaker 1: is that the advent of real time three D as
Speaker 1: we talk about it in industrial applications, the advent of
Speaker 1: x are in live patient surgery, and the fact that
Speaker 1: hundreds of millions of people, typically under the ages, are
Speaker 1: all living in three D worlds today. So not you
Speaker 1: or me yet no offense talk to us then about
Speaker 1: how this is going to change our daily lives. For example,
Speaker 1: you know you you're joining us now remotely, would it
Speaker 1: seem like you were here in the studio in this
Speaker 1: new world. That's certainly one element. We see this in
Speaker 1: particular emphasized by Meta where they talk about the idea
Speaker 1: of co location and presence in virtual space. But in
Speaker 1: some instances we will just be using some of the
Speaker 1: devices we have right now, but we might be doing
Speaker 1: those in three D what we call volumetric displays or holography.
Speaker 1: You and I might be sitting thousands of miles apart
Speaker 1: looking at a screen, but the actual presentation would be
Speaker 1: in three D. And so he showed that that has
Speaker 1: remarkable improvements on retention, engagement, non verbal forms of communication.
Speaker 1: Now you've had your metavers cy t F now going
Speaker 1: for several months, you've gotten you know, names like meta
Speaker 1: in there. Not surprising. Also Snap, which I found interesting
Speaker 1: because snaps view of the metaverse is so different from metas,
Speaker 1: where you know, Evan Spiegel has called Mark Zuckerberg's vision
Speaker 1: so hypothetical, and Snap is betting more on you know,
Speaker 1: more sort of augmented reality over real physical reality. And
Speaker 1: today Snap unveiled a new web version of Snap, which
Speaker 1: almost seems like it's going backwards. How do we square
Speaker 1: these two visions? The way that we square it is
Speaker 1: by ignoring the term altogether. It's helpful to talk about
Speaker 1: a new generation of the Internet. But you'll find that
Speaker 1: because there's no concrete definition, some believe that it fundamentally
Speaker 1: requires crypto. Others have VR centric beliefs, others have augmented
Speaker 1: reality centric. Under the classical definition, where we're talking about
Speaker 1: real time three D. All of those are likely to
Speaker 1: fit in one way, shape or form. Evan might talk
Speaker 1: about augmented reality lenses. Mark Zuckerberg might talk about a
Speaker 1: virtual world with all of your other vision cut off.
Speaker 1: That's still three D and they're still going to interconnect
Speaker 1: in some way, shape or form. Now, let's talk about
Speaker 1: how this changes the world of streaming. You know, you
Speaker 1: were a long time former Amazon Studio executive. How does
Speaker 1: this change the way we watch and what we watch
Speaker 1: and how so? This is a great example of the
Speaker 1: fact that we're already sitting in parts of this world today. Disney,
Speaker 1: of course produced most of the Mandalorian using a game engine,
Speaker 1: a real time three D simulation engine. That meant that
Speaker 1: they could create the perfect sunset. They could hold that
Speaker 1: sunset in place, they can pull out the entirety of
Speaker 1: that virtual set, we shoot it in five years, or
Speaker 1: make it available to you and I on our peloton
Speaker 1: on a video game console in virtual or augmented reality.
Speaker 1: That's one of the ways in which we're gonna start
Speaker 1: to see entertainment change. You've seen that the match CEO
Speaker 1: now comes from Zinga, and he in his new roles
Speaker 1: talking about the idea that you might be able to
Speaker 1: traps tattooing on a date rather than just play games
Speaker 1: from a smartphone. Now Netflix earnings are coming up, We've
Speaker 1: been talking a lot about the success of Stranger Things,
Speaker 1: which is not necessarily a surprise. Even though it's scarier
Speaker 1: and more gruesome than the last three seasons, I'm still
Speaker 1: watching it. Um, what would you bet is going to
Speaker 1: happen here? Do you think they're going to buck the
Speaker 1: trend that we saw earlier this year? Are we're going
Speaker 1: to see a slow degradation in the number of subscribers
Speaker 1: for a while. It's clear by all streaming benchmarks that
Speaker 1: Stranger Things season four was as exceptional as the fans
Speaker 1: hoped in excess of what Netflix did, but also third
Speaker 1: party analytics show that a lot of the subscriber editions
Speaker 1: are weaker than we would have hoped for, and in particular,
Speaker 1: churn looks worse. Antenna, a subscription analytics and data company,
Speaker 1: shows that Netflix now ranked second last in terms of
Speaker 1: subscriber retention after thirty days from sign up. They're also
Speaker 1: had a four year high for the overall services churn
Speaker 1: and retention, and so the numbers basically say that even
Speaker 1: if it was a pretty strong quarter for ads, the
Speaker 1: churn elevation is likely to offset them and more. Lord
Speaker 1: of the Rings the new series. Jeff Bezos tweeted out
Speaker 1: the trailer last week. Do you think it's gonna be
Speaker 1: a mega hit like Stranger Things has been for Netflix?
Speaker 1: Stranger Things came out in sixteen and it's still breaking
Speaker 1: records seven years later. Defining by that degree is going
Speaker 1: to take some time. But do I think that it's
Speaker 1: going to premiere to outstanding viewership globally, that it's going
Speaker 1: to cover the press, that it's going to be one
Speaker 1: of the most magnificant things that Amazon overall does in
Speaker 1: twenty two? Absolutely? So what's your take on the overall
Speaker 1: tech market dynamics. You know, we've got this negative news
Speaker 1: out from Apple that they're going to slow down spending growth,
Speaker 1: that they're going to slow down hiring. Apple you know,
Speaker 1: long considered a bell weather for consumer sentiment. Are you
Speaker 1: taking that as a signal a bad signal for the
Speaker 1: rest of big tech for the foreseeable future. It's not encouraging,
Speaker 1: certainly when you take a look at how many other creators, founders,
Speaker 1: products and services rely on the iPhone and the incremental
Speaker 1: improvements from every device refresh. None of that's good. But
Speaker 1: we're seeing this industry wide. Separate from Apple, the video
Speaker 1: game industry was down nineteen year every year last month.
Speaker 1: Year to date, it's trending at eleven year every year.
Speaker 1: And so we're looking at a broad situation where consumer electronics, entertainment, leisure,
Speaker 1: high end GPS from Nvidio are all getting rest. The
Speaker 1: drop in the crypto markets is exacerbating that on a
Speaker 1: demographic basis. All right, Matthew, always good to have you
Speaker 1: here and excited about your new book, The Metaverse and
Speaker 1: how it will revolutionize everything out tomorrow wherever you get
Speaker 1: your books, Matthew, ball of a billion, Thank you. Coming up?
Speaker 1: Could Elon Musk's bid for Twitter somehow be good for
Speaker 1: Twitter's relationship with China. Our next guest thinks so. Strategy
Speaker 1: Risks founder and CEO Isaac Stonefish is back to talk
Speaker 1: to us about the future of China US tech relations
Speaker 1: and more. This is Bloomberg, the world's biggest maker of
Speaker 1: batteries for electric cars, is considering at least two locations
Speaker 1: in Mexico for a manufacturing plan. China's Contemporary and Paris
Speaker 1: Technology could be positioning itself to help Tesla and Forward
Speaker 1: grow their eving market share in North America. The potential
Speaker 1: sites are near the Texas border, according to Bloomberg sources,
Speaker 1: and the company is planning to invest as much as
Speaker 1: five billion dollars in this project. Meantime, China is facing
Speaker 1: a slew of new challenges as its economy buckles amidst
Speaker 1: stringent COVID zero policies. There are ongoing protests at housing projects,
Speaker 1: for example, in more than fifty cities, with residents refusing
Speaker 1: to pay their mortgage payments, and typically vibrant Hong Kong
Speaker 1: is struggling to recruit and retain new talent. So how
Speaker 1: will this all impact the tech sector? I want to
Speaker 1: bring in Isaac Stonefish, the founder and CEO of Strategy
Speaker 1: Risks that works with companies to assess their risk atxposure
Speaker 1: to China, and thank you's been It's been a while, Isaac.
Speaker 1: Is so good to have you back here on the show.
Speaker 1: I mean, when you look at China right now, is
Speaker 1: it still a good place to put your money? I
Speaker 1: think it depends what better options you have, And certainly
Speaker 1: there's a lot of other places in the world, a
Speaker 1: lot of industries, a lot of other sectors that have
Speaker 1: more minimal China exposure. I think for so long people
Speaker 1: have been miss pricing the risk of investments in China,
Speaker 1: and now that the risks are so much more clear,
Speaker 1: they're able to step back and say, oops, right, is
Speaker 1: the center of gravity in the texting moving? Is it
Speaker 1: moving from you know, Beijing to Hong Kong, or from
Speaker 1: Hong Kong to Singapore for example, where conditions are more predictable.
Speaker 1: I think a lot of people in the tex Sing
Speaker 1: like the idea of it being decentralized, especially the more
Speaker 1: bitcoin e of the folks. I think the China certainly
Speaker 1: is the center of the tex sing in Asia, but
Speaker 1: it's really too early to say whether or not they
Speaker 1: can never have a global tech scene. I mean, Chinese
Speaker 1: entrepreneurs have long succeeded despite the Chinese Communist Party and
Speaker 1: despite the conditions of China as opposed to because of
Speaker 1: and as their space grows narrower and narrower, I think
Speaker 1: we are going to see more of an exodus of
Speaker 1: talent to other parts of the world. Do you think
Speaker 1: the COVID policies will have a long term impact, like
Speaker 1: will this be an inflection point. I think it definitely
Speaker 1: could be there. There's a metaphor going around China of
Speaker 1: the guy stepping on someone else's neck and a lot
Speaker 1: of people going around thinking, Okay, how do we get
Speaker 1: this guy to breathe? What can we do? What can
Speaker 1: we do? And the solution is take your foot off
Speaker 1: the neck. So it's been a long period of strangulation
Speaker 1: of China's economy. There's huge emotional damages of the cruel
Speaker 1: lockdown that they've had, and yeah, I think that will
Speaker 1: have really long term effects. Meantime, you've got companies like TikTok,
Speaker 1: for example, just continuing to thrive. And obviously you know
Speaker 1: parent company is Bite Dance. And do you think that
Speaker 1: US tech company US social media companies will ever be
Speaker 1: a to catch up. I think they will. I think
Speaker 1: they certainly might. And I think the game that TikTok
Speaker 1: is playing is how can it seem as un Chinese
Speaker 1: as possible in the United States? And the more it
Speaker 1: gets tarred with its association with the Chinese Communist Party,
Speaker 1: the better it will be for Meta and Google and
Speaker 1: Microsoft and frankly even Oracle. So you live some interesting
Speaker 1: analysis on this whole elon Musk Twitter debate, and that
Speaker 1: you think that Elon Musk's potential involvement in Twitter, or
Speaker 1: you know, the drama in general could be good for
Speaker 1: Twitter's relationship with China, which is interesting given that Twitter
Speaker 1: has been blocked in China since two thousand nine or
Speaker 1: two thousand and ten when I was living there. Um,
Speaker 1: what do you mean, Musk, For someone who's such a
Speaker 1: free speech avatar, has this massive blind spot when it
Speaker 1: comes to China and refuses to criticize China the Chinese
Speaker 1: Communist Party in a way that's especially egregious for someone
Speaker 1: who's so open and no holds barred with so many
Speaker 1: other people, And it feels like employees of Twitter will
Speaker 1: read between the lines, or we'll listen to directives that say, Okay,
Speaker 1: we don't need to be so aggressive and labeling Chinese
Speaker 1: accounts linked to state media. We don't need to push
Speaker 1: back against this kind of information, We don't need to
Speaker 1: see this as misinformation. And hey, Tesla's in China. Why
Speaker 1: can't Twitter be in China and make a lot of
Speaker 1: the ethical sacrifices that Musk has made Visa VI Tesla
Speaker 1: in China. Interesting, So you think if Elon Musk takes
Speaker 1: over Twitter and does the deal as he promised that
Speaker 1: it could be an entree for Twitter back into China.
Speaker 1: I think it certainly can be. Now, I don't think
Speaker 1: that's necessarily going to be good for Twitter's bottom line,
Speaker 1: it will certainly change the way the social media platform works.
Speaker 1: I think we see Tesla on one side, which is
Speaker 1: heavily exposed to China. We have SpaceX on the other side,
Speaker 1: which is heavily hived off from China. You have Musk
Speaker 1: and other board members linking them, and I think Twitter
Speaker 1: will fit somewhere in between. But I think it's possible
Speaker 1: that they might fit closer to the Tesla model than
Speaker 1: the SpaceX model. And how optimistic are you about the
Speaker 1: future of Tesla in China, especially given all of these
Speaker 1: broader economic concerns. I think it depends on how far
Speaker 1: Musk is willing to bend. And there's a lot of
Speaker 1: concerns in China about Tesla as a national security threat
Speaker 1: because all the data that it collects. And I assume
Speaker 1: that Musk will be very happy to continue yielding to
Speaker 1: the Chinese Communist Party with sharing data, with doing things
Speaker 1: like opening a showroom in shin Jong the region of
Speaker 1: northwest China, where upwards of a million Muslims have been
Speaker 1: in concentration camps. I think will continue to see similar behavior.
Speaker 1: I think that, frankly, the thing that would be most
Speaker 1: likely to change it if Musk decides to be more
Speaker 1: heavily involved with politics in the United States and thinks, well,
Speaker 1: this is just too much of a liability for me.
Speaker 1: But I don't see that as very likely. This along
Speaker 1: with concerns about TikTok and how TikTok handles data of
Speaker 1: its users and whether or not it's shared with the
Speaker 1: Chinese government, what's your take? No question that that it
Speaker 1: can be shared with the Chinese government, that there's no way,
Speaker 1: I think what people need to understand. And this transitions
Speaker 1: to another even darker topic. But if the US and
Speaker 1: trying to go to war over Taiwan or highlands in
Speaker 1: the East or the South Sea, or Vietnam or any
Speaker 1: other country in the region, all of Chinese companies and
Speaker 1: US companies will be viewed by some his enemy combatants.
Speaker 1: And the threat with TikTok is less. That someone's using
Speaker 1: TikTok in New Jersey and the Chinese Commuist Party is
Speaker 1: watching that in real time. But the way that that data,
Speaker 1: that information, that location tracking can be weaponized if Beijing
Speaker 1: so chooses dark. Indeed, thank you for taking us there,
Speaker 1: uh and for joining us here in the studio, Isaac
Speaker 1: Stone Fish of strateg g Risk always get to have
Speaker 1: you here. Thanks for having me. Speaking of Twitter, some
Speaker 1: headlines just crossing now about Twitter's dispute with Elon Musk,
Speaker 1: Twitter dismissing Musk's complaints that he doesn't have enough information
Speaker 1: about spam and bought accounts, Twitter saying the complaints are
Speaker 1: a irrelevant quote sideshow urging a judge to hold a
Speaker 1: trial as soon as possible over his proposed cancelation of
Speaker 1: this deal. We're expecting that hearing the first hearing in
Speaker 1: this legal saga Tuesday. Despite the major success of the
Speaker 1: latest season of Stranger Things, Netflix investors have been bracing
Speaker 1: for subscriber losses. Shares are down more than six this
Speaker 1: year as the streaming space gets more competitive and inflation
Speaker 1: is forced consumers to be more selective. But shares jump
Speaker 1: to kick off the week ahead of earnings. Bloomberg's Local
Speaker 1: show covers all things streaming for us, So why are
Speaker 1: shares climbing ahead of what's expected to be a not
Speaker 1: so great report, optimism that things will be better than expected.
Speaker 1: You know, Netflix said forecast that they would lose two
Speaker 1: million subscribers in the quarter, which would be their worst
Speaker 1: quarter ever. It would also mean that for the year
Speaker 1: they would have lost two point two million. I think
Speaker 1: there's some optimism, based on reporting and third party analysis
Speaker 1: and just the kind of obvious success of Stranger Things
Speaker 1: that maybe they'll lose five thousand or a million instead
Speaker 1: of two million. I also think that, you know, the
Speaker 1: last time around, Netflix recorded earnings and throw a lot
Speaker 1: of information at people, and they've done a better job
Speaker 1: over the last couple of months of trying to explain
Speaker 1: what some of that means. You know, there's been some
Speaker 1: talk about, you know, changing the the binge watching strategy,
Speaker 1: releasing episodes weekly for example. Do you think there's a
Speaker 1: chance that could happen, I mean, I guess Stranger Things
Speaker 1: have happened, right un intended. Yeah, they're already starting it
Speaker 1: with with the release of Stranger Things and and what
Speaker 1: Casa de Papel and Ozark. They've they've gone with this
Speaker 1: batch approach where they'll release a season in two installments, say,
Speaker 1: instead of all at once, and I think you'll see
Speaker 1: a lot more of that or maybe in in three
Speaker 1: I don't think you'll ever see Netflix or at least
Speaker 1: not anytime soon go with kind of the weekly model
Speaker 1: that's been popularized in a lot of pv But they
Speaker 1: are seeing a benefit in say, releasing four to six
Speaker 1: episodes at a time, uh and then spacing it out
Speaker 1: because it reduces the number of people who are canceling.
Speaker 1: If they know that they have the show that they like,
Speaker 1: that they're gonna need to stick with Netflix for at
Speaker 1: least two or three months. Did you know they did
Speaker 1: that with Ozark too. Has it worked? I mean, as
Speaker 1: a viewer, I found it incredibly frustrating. Well, that frustration
Speaker 1: is why they haven't done it until now, because they've
Speaker 1: conditioned all these people to just get to watch it
Speaker 1: all at once. I think what you see, based on
Speaker 1: some of the third party data at least and and
Speaker 1: on the data that Netflix puts out, is there is
Speaker 1: a secondary spike in viewership, and that seems like a
Speaker 1: good thing if your desire is to make sure that
Speaker 1: people are coming back to Netflix on a regular basis.
Speaker 1: You know, there's also some reporting about who growing more
Speaker 1: than even Disney Plus itself, and of course Disney is
Speaker 1: a big stakeholder in who what are these clues telling
Speaker 1: us about what consumers want and what services? Are you know,
Speaker 1: going to trunk them all? Yeah? I mean the important
Speaker 1: thing to keep in mind on that Hulu report is
Speaker 1: that it's specific to the US UH and so, and
Speaker 1: it's from a third party data. So who may be
Speaker 1: doing better than Disney Plus right now in the In
Speaker 1: the U s Disney Plus is still larger than Hulu
Speaker 1: by a lot, especially worldwide. Hulu is only US only,
Speaker 1: and so the question looming over Disney is is are
Speaker 1: they going to end up buying comcasts out of it
Speaker 1: and folding it into Disney Plus. Do they want to
Speaker 1: keep it independent. That being said, whul has been on
Speaker 1: a really good streak of programming um and is one
Speaker 1: of the reasons why you've seen Netflix stumble a bit.
Speaker 1: Is these other services, namely Disney Plus, HBO Max and
Speaker 1: Apple TV Plus and to some extent, Hulu, have given
Speaker 1: consumers a lot of alternatives online. And I think it
Speaker 1: used to be that Netflix was the default for most
Speaker 1: people if they wanted to watch TV, at least if
Speaker 1: they wanted to stream and that's just not the case anymore. Meantime,
Speaker 1: you've got Amazon coming out with Lord of the Rings,
Speaker 1: long anticipated. Who stands to gain the most from, you know,
Speaker 1: a potential decline in Netflix subscribers. Is it Disney plus,
Speaker 1: is it Amazon? It'll probably be spread across a number
Speaker 1: of players. You know, Disney has already benefited a bunch
Speaker 1: and hopes to continue to do so. HBO Max has
Speaker 1: been in a really good group with programming and has
Speaker 1: grown at a study clip. You know, Paramount uh is
Speaker 1: actually one of the fastest growing services, at least in
Speaker 1: the US. You know, Amazon has been at it for
Speaker 1: as long as Netflix and has really been a second
Speaker 1: or third fiddle to them the whole time. They are
Speaker 1: trying to to kind of get their act together. Lord
Speaker 1: of the Rings is the biggest swing and they certainly
Speaker 1: hope that that works. At the same time, you've got
Speaker 1: another tech giant in Apple that some would argue has
Speaker 1: done a better job of programming over the last couple
Speaker 1: of years. All right, Well, lots to keep watching with
Speaker 1: Netflix results out later this week are very on Lukashaw.
Speaker 1: Thank you Lucas as always for joining us. Well. Next
Speaker 1: to streaming, one of the industries. Perhaps most profoundly changed
Speaker 1: by the pandemic has been healthcare, accelerating the progress of
Speaker 1: telemedicine and more able Partners is a women let investment
Speaker 1: fund supporting early stage brands that focus on making the
Speaker 1: daily lives of consumers happier and healthier. And they just
Speaker 1: ran a study on how gen Z in particular is
Speaker 1: navigating the new complexities of healthcare. Founding partner Amanda Alien
Speaker 1: joins me. Now, Amanda, thank you so much for being
Speaker 1: here so talk to us about this report and what
Speaker 1: surprised you most about gen Z. Well, thanks for having me, Emily.
Speaker 1: I think the most surprising finding by far is the
Speaker 1: fact that this generation gen Z, they might not want
Speaker 1: to go back to the office full time, but they
Speaker 1: seem to want to see their healthcare providers in person.
Speaker 1: When we asked them their preferred communication method for their
Speaker 1: healthcare providers, they chose in person communication well above any
Speaker 1: other form of communication. And looked at another way, we
Speaker 1: asked them their top criteria when choosing a healthcare provider,
Speaker 1: and they chose convenient location as their top criteria, and
Speaker 1: telehealth capabilities were actually last in the survey. So when
Speaker 1: you look at the amount of funding. Yeah, So does
Speaker 1: that mean we should you should be lesting investing less
Speaker 1: in telehealth? Well, I think when we dig a little
Speaker 1: deeper into those findings, we find that the preference is
Speaker 1: really for a hybrid solution. So while they they want
Speaker 1: to meet their healthcare provider in person, when we ask
Speaker 1: them how they want to how often they want to
Speaker 1: hear back from their provider, the majority of respondents expect
Speaker 1: to hear back from providers within a few hours when
Speaker 1: they have a question or a concern. So they're really
Speaker 1: looking for the convenience of digital channels while still having
Speaker 1: the opportunity to make an in person connection. So well,
Speaker 1: I think it's true that the telehealth revolution has been
Speaker 1: oversold for this generation, there is a role for it,
Speaker 1: and I think when you start looking at specific specialties,
Speaker 1: perhaps mental healthcare, there could be even a larger role.
Speaker 1: So healthcare is operating and not just a post COVID
Speaker 1: but also now a post ROW world. Are the trends
Speaker 1: that stem from that. When we think about the impact
Speaker 1: of the job's decision, that obviously has the largest impact
Speaker 1: directly on providers of telehealth abortions, and they've seen increase
Speaker 1: in demand as well as increased risks and liabilities as
Speaker 1: a result of that decision. But when you think about
Speaker 1: the broader impact, it actually has the potential to make
Speaker 1: employment and investment more or less appealing in any number
Speaker 1: of states. So if you're in Austin or Miami, I
Speaker 1: think you you have a recruiting disadvantage at this point.
Speaker 1: In our survey, we found that nearly half of gen
Speaker 1: Z women were somewhat or very unlikely to take a
Speaker 1: job in a state that had restricted abortion rights, and
Speaker 1: that number with for men. So when you're an employer
Speaker 1: and you're looking at potentially of your future workforce not
Speaker 1: wanting to work in your state, it doesn't matter where
Speaker 1: you stand on the political divide. That's just a business decision.
Speaker 1: And so I think the secondary impact of that is
Speaker 1: we will see further move towards permanent work from home
Speaker 1: policies and companies that are able to optimize a distributor workforce,
Speaker 1: we'll continue to have advantages. Interesting, all right, thank you
Speaker 1: so much for joining us to tell us all about it.
Speaker 1: Able Partners founding partner Amanda Alien appreciate it. Coming up.
Speaker 1: Bitcoin and all coins rallying after the June crypto wipe out.
Speaker 1: We're going to talk about why next. This is Bloomberg
Speaker 1: time now for our crypto reported Bitcoin rallying to start
Speaker 1: the week at one point, trading above for the first
Speaker 1: time since early June and testing the upper bound of
Speaker 1: the tight range where it's been stuck for the last month,
Speaker 1: and smaller tokens are All coins also having a good day,
Speaker 1: even outperforming Bitcoin. You can see here Ether extending a
Speaker 1: rally that began last week after developers of the Ethereum
Speaker 1: blockchain gave a target for their software update projected to
Speaker 1: lower the network's energy usage, the long awaited merge, and
Speaker 1: other coins like Avalanche, Polygone, Cardono all in the green.
Speaker 1: I want to talk about all this and more with
Speaker 1: Bloomberg's Hannah Miller. So Hannah, first of all, why are
Speaker 1: we seeing Bitcoin and other coins rallying right now? Yeah, Well,
Speaker 1: there's been some space in between, uh you know, this
Speaker 1: rally here and the freezing of withdrawals at Celsius, which
Speaker 1: we saw a huge downturn in price um for cryptocurrencies
Speaker 1: in mid June, and Bitcoin is you know, sparking trader's interests.
Speaker 1: There is hope that maybe they Bitcoin will break out
Speaker 1: of this nineteen thousand dollars to twenty two thousand dollar range,
Speaker 1: and for ether in particular among all coins. News of
Speaker 1: the merge that can happen as soon as September has
Speaker 1: really sparked interests in etherorium again. And yet we had
Speaker 1: a guest last week that called etherium a giant Panzi scheme.
Speaker 1: What do you make of that? Yeah, there's always going
Speaker 1: to be skepticism in this industry. There are people who
Speaker 1: are concerned about the safety and the risks that you
Speaker 1: know defive poses two investors um so with especially in
Speaker 1: light of like the what's happening with Celsius and what's
Speaker 1: happening with therrs capital and the freezing of withdrawals at
Speaker 1: various crypto lenders. This has put a lot of people
Speaker 1: on edge within the industry. Let's talk about that. There
Speaker 1: are some new developments when it comes to three arrows
Speaker 1: this you know, big Crypto Hedge Fund, as well as
Speaker 1: the Celsius bankruptcy, and you know, all of this amidst
Speaker 1: calls for more regulation. Yes, we have a fuller picture
Speaker 1: of what's happening here with the collapse of three Hours Capital.
Speaker 1: Um we got a more detailed list today of creditors,
Speaker 1: and it's a pretty interesting list. There are some really
Speaker 1: big names in the industry on their like Digital Currency Group,
Speaker 1: and also one of the co founders, through ours Capital's
Speaker 1: wife actually has a has a claim in So it's
Speaker 1: pretty interesting to see how interconnected this industry is. And
Speaker 1: we're still getting details emerging about Celsius, about there's Capital
Speaker 1: and it we're still entangling sort of this web here
Speaker 1: of what's happening all right, Bloomberg's Hannah Miller, Hannah, thank
Speaker 1: you so much for all of those updates. Speaking of
Speaker 1: distress to crypto firms, the rise and fall of companies
Speaker 1: like Celsius and others has sparked calls for more legislation
Speaker 1: and regulation in the crypto space overall. Here's what Marty Chavez,
Speaker 1: vice chair and partner at six Street and recently appointed
Speaker 1: as a member of the Alphabet Board, had to say
Speaker 1: about that earlier on Bloomberg Television. Regrettably, we usually wait
Speaker 1: until some calamity before there is regulation, and the questions
Speaker 1: always was this calamity big enough for does their need
Speaker 1: to be another way down before we have the appropriate regulation.
Speaker 1: My next guest who joins us now, Sheila Warren, is
Speaker 1: the CEO of the Crypto Council for Innovation, and she
Speaker 1: founded the World Economic Forums, Blockchain and Digital Assets teams.
Speaker 1: So Sheila, Look, there's been a lot of big red
Speaker 1: flags Celsius three arrows. You heard what Marti Chavez, They're said,
Speaker 1: they're about regulation. Are we behind? Are we waiting for
Speaker 1: a calamity? You know that we're waiting for a calamity.
Speaker 1: I find that a bit dramatic. I mean, I think
Speaker 1: we've seen a number of cycles and waves in this industry.
Speaker 1: You know, I've been in this space for seven years now,
Speaker 1: and this is not the first time we've seen a
Speaker 1: big crash followed by a pretty quick rally. And I
Speaker 1: think you're kinda mentioned earlier that we are starting to
Speaker 1: see a little bit of that rally start to happen
Speaker 1: in market sing were confidence in these alternative assets. So
Speaker 1: so I don't know that anyone's waiting for a calamity.
Speaker 1: I think there's been enough attention placeless industry, I would
Speaker 1: say unduly placed in some cases in this industry, and
Speaker 1: skepticism around it that I think there's been a lot
Speaker 1: of attention already paid. What do you think is driving
Speaker 1: this rally? And does it last. I mean, it just
Speaker 1: seems to be bad news everywhere else when it comes
Speaker 1: to the economy. Well, I think that's right. I think
Speaker 1: we're part of a there's a broader market melt on happening.
Speaker 1: And I actually think it's pretty profound that you're seeing
Speaker 1: these individual coins that are starting to kind of turn
Speaker 1: around and uh and pick up a little bit. So,
Speaker 1: you know, Etherory and I think Canada and nails that
Speaker 1: I think it really is about the merge is the
Speaker 1: idea that this has been waiting a long time coming.
Speaker 1: You know, people have been talking about the merge since
Speaker 1: Etherory it was first launched, and the idea that there
Speaker 1: could be this transition from what's called proof of steak
Speaker 1: to proof a from a work rather to proof of steak.
Speaker 1: I should note that it's a N nine reduction and
Speaker 1: the use of energy. It's not just a ten percent
Speaker 1: or two percent reduction. It's a massive reduction and energy.
Speaker 1: Energy has been a big talking point for some folks
Speaker 1: in this space. So I do think people are excited
Speaker 1: to see not even so much about the energy usage,
Speaker 1: with the fact that this major technology change can be achieved.
Speaker 1: It's complicated, it's really hard to do the details, and
Speaker 1: that the building these systems are are so complex. But
Speaker 1: here we are, for the first time really seeing this
Speaker 1: massive change in the way that infrastructure is going to run.
Speaker 1: But I think it's kind of proof that, you know,
Speaker 1: you give it time, these things are gonna thrive. I
Speaker 1: have to ask you that about these comments that we
Speaker 1: got last week from the founder of Tesso's, who you know,
Speaker 1: basically called Ethereum a giant Ponzi scheme. I mean, you've
Speaker 1: got major skeptics, not just outside the industry but inside
Speaker 1: the industry who don't believe in it. So I think
Speaker 1: one thing that's important to note about cryptos it tends
Speaker 1: to be pretty tribal. So you do have folks that
Speaker 1: have kind of picked their token, they picked their team,
Speaker 1: and they're going to talk about their team as being
Speaker 1: the best team. And look, I mean or to stage
Speaker 1: of innovation. Like with any industry, there are a bunch
Speaker 1: of options. They have some similarities, they have some differences,
Speaker 1: in some cases pretty significant differences. And you know, I'm
Speaker 1: agnostic about this. I don't know the market is going
Speaker 1: to decide which of these things winds up being really
Speaker 1: sticky and taking off. And which doesn't. I think it's
Speaker 1: natural to have contraction, natural to have some of these
Speaker 1: things are going to fail, right, some are gonna grow.
Speaker 1: So it's normal to me to see somebody who might
Speaker 1: be favoring a different opportunity talking about other opportunities with
Speaker 1: a negative frame. And I think you'll see that this
Speaker 1: happens quite a bit in the industry as people talk
Speaker 1: about projects that aren't theirs, tribalism. Indeed, where are you
Speaker 1: on the big debate about whether crypto is is a
Speaker 1: security or a commodity, because obviously that has major implications
Speaker 1: for how all of this is regulated and invested in. Yeah,
Speaker 1: this say is I think the debate of the age
Speaker 1: right now. And you're seeing a lot of activity on
Speaker 1: the hill also with Mika and the European Parliament Europe
Speaker 1: about this about this topic as well, kind of defining
Speaker 1: like what is the classification of this asset, which is
Speaker 1: determined not only who regulates it, but some of the
Speaker 1: rules of engagement, What are you allowed to do? How
Speaker 1: ownerous sort of disclosures when today happen, you know, all
Speaker 1: that kind of thing and will shape the way that's
Speaker 1: really continted to develop. So so my view is that
Speaker 1: most things do start off, I think, to some degree
Speaker 1: in a somewhat centralized fashion, and simply because you do
Speaker 1: have a group of people who are engaging in that build.
Speaker 1: But I do think we've seen several that over time
Speaker 1: have really evolved to be pretty decentralized. Now, the how
Speaker 1: we test, which is what determines whether or not something
Speaker 1: is a security, does have a prong that talks about
Speaker 1: the engagement of others. Right, how much does the activity
Speaker 1: of one or a group of people really affect the
Speaker 1: effort there are efforts? How does that affect the nature
Speaker 1: of the build, of the project, of the of the
Speaker 1: price of all those kinds of things. And in decentralized systems,
Speaker 1: there's an argument to be made that's really strong that
Speaker 1: there's not such engagement from any individual or even group
Speaker 1: that's going to affect the way that the thing tends
Speaker 1: to tends to land, tends to grow, tends to be shaped.
Speaker 1: And so I do think we probably pretty pretty strong
Speaker 1: idea of bitcoin and ether commodities other things being developed
Speaker 1: and and happening right now. But we're going to get
Speaker 1: to a place, I think, or more and more decentralization
Speaker 1: is the is the norm. All right, Well, we will
Speaker 1: be watching every twist in turn to see how that
Speaker 1: debate plays out. Crypto Council for Innovation CEO Sheila Warre
Speaker 1: and she looked great to have you back here. It
Speaker 1: is a big week for the courts and the integrity
Speaker 1: of m and A. Twitter has responded to Elon Musk,
Speaker 1: I had of Tuesday's big hearing Bloomberg, Jeff Peely joins
Speaker 1: us now from Wilmington, Delaware where this hearing will go down,
Speaker 1: and Jeff who joins us now on the phone. Elon
Speaker 1: Musk responded to Twitter suits saying he needed more time
Speaker 1: to to prove his argument in court that Twitter was
Speaker 1: trying to rush and off to skate things. Twitter has
Speaker 1: now responded to what Elon Musk had to stay, Where
Speaker 1: do things stand right now? Well, you know, it's just
Speaker 1: a battle of two sides. Twitter today basically said that
Speaker 1: Mr Musk's arguments that they hadn't turned over enough information
Speaker 1: on the spam and robot bots within their customer base
Speaker 1: was quote basically irrelevant and irrelevant. Side show close quote
Speaker 1: that he knew all along how many bots there were
Speaker 1: and this is a pretext to walk away. Um basically
Speaker 1: we're at the stage now where the judges to have
Speaker 1: to decide whether to fast track it and you know,
Speaker 1: go for a trial in September or trial in February
Speaker 1: or somewhere in between. Now, in another twist, the judge
Speaker 1: who's going to run this hearing actually has COVID. So
Speaker 1: the hearing is I understand it was supposed to be
Speaker 1: in person, is still going to happen, but it's gonna
Speaker 1: be on zoom. Is that right? Yeah, that's right. But
Speaker 1: we've had a little boom let down here of the
Speaker 1: new variant. So judge Judge sent a letter out today
Speaker 1: saying she had been tested positive. We were pretty pretty
Speaker 1: uh familiar with this. We did. We did zoom hearings
Speaker 1: for the better part of two years down here, so
Speaker 1: it'll be fine. So what exactly is going to happen
Speaker 1: at this hearing? What will the judge decide? So Twitter
Speaker 1: has asked to basically what's called fast track it's lawsuit
Speaker 1: and uh, you know that doesn't give you any specifics
Speaker 1: in terms of how fast, but it means months rather
Speaker 1: than years. And Twitter says that every day that passes
Speaker 1: with the cloud over its shares is harming the company's value,
Speaker 1: so that's why they're pushing for a UH sped up
Speaker 1: trial for September nine. Mr Musk, on the other hand,
Speaker 1: says that the case is way too complicated to try
Speaker 1: to compress UH discovery pre trial information exchanges to that
Speaker 1: kind of UH period and it really needs, you know,
Speaker 1: to be spread out to The trial should be held
Speaker 1: in February of next year. My suspicion is the judge
Speaker 1: will come down somewhere between those two gates. Jeff Felia,
Speaker 1: Bloomberg News in Delaware, who will be covering this hearing
Speaker 1: for us, Thanks so much, Jess. As always, will stay
Speaker 1: tuned to your reporting. And that does it for this
Speaker 1: edition of Bloomberg Technology. Tomorrow we're gonna hear from Gerber
Speaker 1: Kawasaki CEO, Ross Gerber, big investor in Netflix, and tessel
Speaker 1: Hilla help us breakdown Netflix results. And as always, don't
Speaker 1: forget to check out our podcast wherever you get your podcasts.
Speaker 1: I'm Emily ch in San Francisco. This is Bloomberg