WEBVTT - Cathie Wood Talks Tech Stocks; Big Bank Earnings Continue

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>Bank earnings resumed this morning with Morgan Stanley and Bank

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<v Speaker 3>of America set to report. That's after mixed results from

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<v Speaker 3>lenders last week. We get a preview from Bloomberg Intelligence

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<v Speaker 3>senior analyst Alison Williams.

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<v Speaker 4>Net interest income is going to be the key variable

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<v Speaker 4>that we're going to be looking at for Bank of America,

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<v Speaker 4>and that's after we saw upside to both the quarterly

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<v Speaker 4>numbers as well as guidance on that particular line items

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<v Speaker 4>from some of the biggest banks last week. Bank of

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<v Speaker 4>America should get some benefit from the card loans where

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<v Speaker 4>we've saw some good growth. They do have some exposure there. However,

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<v Speaker 4>weakness on the commercial and industrial side could be a negative.

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<v Speaker 4>As for Morgan Stanley, the deposit costs are a factor

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<v Speaker 4>for them, But really the bigger picture is going to

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<v Speaker 4>be on the trading and fee side of things, just

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<v Speaker 4>because that tends to be a little bit more volatile.

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<v Speaker 4>Equity trading is a week spot this quarter. Fees are studying,

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<v Speaker 4>but they're setting at pre pandemic levels. Are there some

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<v Speaker 4>signs of hope going into the second half or will

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<v Speaker 4>that be pushed out till twenty twenty four.

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<v Speaker 3>Allison Williams with Bloomberg Intelligence says flows for June could

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<v Speaker 3>be key for Morgan Stanley. The bank saw those steady

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<v Speaker 3>in May after seasonal outflows in April.

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<v Speaker 2>Meantime, Nathan wall Street banks will face stiffer rules on

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<v Speaker 2>mortgage capital than their global peers. Bloomberg News has learned

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<v Speaker 2>the change is part of a sweeping overhaul due to

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<v Speaker 2>be unveiled by regulators at the end of this month.

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<v Speaker 2>Bloomberg's Katanga Johnson breaks down the changes.

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<v Speaker 5>What this measure will require is for banks to put

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<v Speaker 5>more capital aside to how boffer against any potential defaults

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<v Speaker 5>or losses. And while there are certain standards that globally

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<v Speaker 5>that banks a ball flights as well be imposed to

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<v Speaker 5>the US centers scoch just a little bit.

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<v Speaker 2>Beyond, and Bloomberg's Katanga Johnson says the FDI SEE, the

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<v Speaker 2>FED and the Office of the Controller of the Currency

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<v Speaker 2>are declining to comment on the move. Where told, the

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<v Speaker 2>regulators are likely to unveil the changes on July twenty seventh.

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<v Speaker 3>Well, the economy is going to be in focus as well.

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<v Speaker 3>This morning, Karen. When we get retail sales data for June,

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<v Speaker 3>economists forecast a solid half percent gain. We get more

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<v Speaker 3>from Bloomberg Economics correspondent Michael McKee.

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<v Speaker 6>Americans likely spent more during June as auto sales at

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<v Speaker 6>other discretionary purchases rose, helping boost sales and increase in

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<v Speaker 6>consumer sentiment, brought on in part by lower gasoline prices.

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<v Speaker 6>Retail sales are calculated on a dollar basis, so gas

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<v Speaker 6>will be a drag on the numbers, but it means

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<v Speaker 6>there was more available to spend on other things. June

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<v Speaker 6>is usually a good month at outdoor and gardening stores,

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<v Speaker 6>and home remodeling has been relatively strong. Inflation's contribution to

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<v Speaker 6>the data is shrinking, so the headline numbers will give

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<v Speaker 6>a little clearer picture of the consumer economy. Good numbers

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<v Speaker 6>should lift markets as the outlook tilts more towards a

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<v Speaker 6>soft landing. Michael McKee, Bloomberg Daybreak.

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<v Speaker 2>All right, Michael, thank you. While turning to geopolitics now,

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<v Speaker 2>tensions between the US and China continue to take center stage.

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<v Speaker 2>We're learning the US plans to limit investments in ships,

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<v Speaker 2>AI and quantum computing in China likely by next year.

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<v Speaker 2>At the same time, though the scope OFO'SE limits is

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<v Speaker 2>being cut back. Bloomberg's Amy Morris has details from Washington.

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<v Speaker 7>The Biden administration's plans to restrict investments in China will

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<v Speaker 7>be narrowly focused on cutting edge technology, only new investments,

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<v Speaker 7>and likely won't take effect until next year. Treasury Secretary

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<v Speaker 7>Janet Yellen tell's Bloomberg the restrictions are narrowly targeted.

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<v Speaker 8>They would focus on a few sectors, in particular semiconductor's,

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<v Speaker 8>quantum computing, and artificial intelligence.

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<v Speaker 7>This is part of the administration's effort to limit China's

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<v Speaker 7>capabilities in developing next gen tech, but the original scale

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<v Speaker 7>of the program has been cut back to include only

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<v Speaker 7>new investments and not the biotech and energy sectors, sources

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<v Speaker 7>tell Bloomberg. Officials won a proposal by the end of

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<v Speaker 7>next month. In Washington, I may me Morris Bloomy daybreak.

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<v Speaker 3>All right, a me thank you. While the Whitehouse looks

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<v Speaker 3>to restrict investment in China, it's also looking for common

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<v Speaker 3>ground with Beijing on climate change. Special Climate Envoy John

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<v Speaker 3>Kerry met today with China's Premier League Kiang. Negotiations are

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<v Speaker 3>aimed at a series of issues, including global climate targets,

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<v Speaker 3>methane abatement, and the use of coal fired power.

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<v Speaker 2>And turning to corporate news now, Nathan, it could take

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<v Speaker 2>a little more time for Microsoft to close its takeover

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<v Speaker 2>off Activision. The original deadline for the sixty nine billion

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<v Speaker 2>dollar deal was today. The companies are still waiting for

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<v Speaker 2>final regulatory approvals, including a key one in the UK.

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<v Speaker 3>The meantime, big tech more broadly has been on a

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<v Speaker 3>tear Karen. The Nasdaq one hundred has gained forty three

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<v Speaker 3>percent this year. That has some on Wall Street worried

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<v Speaker 3>about a pullback, including Arc Investment Management CEO Kathy Wood.

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<v Speaker 3>She tells us notes of caution are popping up in

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<v Speaker 3>equity markets.

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<v Speaker 8>You know what's interesting is to see funds having nice

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<v Speaker 8>moves and flows not follow I think there's a wall

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<v Speaker 8>of worry up out there. It is about further interest

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<v Speaker 8>rate increases. What's going to break next? It's about a

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<v Speaker 8>hard landing.

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<v Speaker 3>Kathy Wood says she's still focused on growth tied to

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<v Speaker 3>artificial intelligence. She's buying shares of companies that could benefit

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<v Speaker 3>from the technology. Stay tuned for more of our interview

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<v Speaker 3>with the Ark Investment CEO. It's coming up shortly on

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<v Speaker 3>Bloomberg Daybreak.

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<v Speaker 2>Well, despite those concerns from Kathy Wood and Nathan, investors

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<v Speaker 2>are bullet shawn tech and they expect a soft landing

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<v Speaker 2>for the US economy. Those are the findings of Bank

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<v Speaker 2>of America's latest global survey and show sixty eight percent

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<v Speaker 2>of fund managers expect an economic slow down without a recession,

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<v Speaker 2>and being long on big tech stocks top the list

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<v Speaker 2>of most crowded trades in the survey. And this is Bloomberg.

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<v Speaker 3>Time now to take a look at some of the

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<v Speaker 3>other stories making news in New York and around the world.

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<v Speaker 3>For that were joined by Bloomberg's Michael Barr.

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<v Speaker 9>Good morning, Michael, Good morning, Nathan. To Florida judge who

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<v Speaker 9>issued accord ruling last year that critics said was unduly

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<v Speaker 9>fait favorable to former President Donald Trump is set to

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<v Speaker 9>preside over the first pre trial conference in his landmark

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<v Speaker 9>criminal case concerning the willful retention of classified documents. Prosecutors

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<v Speaker 9>and defense lawyers are scheduled to appear today before US

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<v Speaker 9>District Judge Ellen Kennon. They will discuss the rules and

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<v Speaker 9>procedures that will govern how classified evidence is used in

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<v Speaker 9>the case. Meanwhile, Donald Trump has suffered another legal defeat,

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<v Speaker 9>Bloomberg said. Baxter reports, this one in Georgia.

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<v Speaker 10>Trumpet attempted to have the election probe stopped and that

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<v Speaker 10>Georgia Supreme Court said no, the decision unanimous. An announcement

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<v Speaker 10>from Fulton County District Attorney Fanny Willis is expected soon

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<v Speaker 10>to announce whether a grand jury has brought indictments in

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<v Speaker 10>the case. Trump's attorneys have argued that Georgia's special grand

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<v Speaker 10>jury process is generally unconstitutional and that the DA has

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<v Speaker 10>been permitted to turn the twenty twenty election probe into

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<v Speaker 10>quote a Jerry rigged investigative weapon. Quote in San Francisco,

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<v Speaker 10>I'm at Baxter Bloomberg daybreak.

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<v Speaker 9>House, Democrats introduced a resolution to censure Republican Congressman George

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<v Speaker 9>Santos of New York. Fellow New York Representative Richie Turres,

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<v Speaker 9>a Democrat, says Santos quote repeatedly lied to voters in

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<v Speaker 9>his district.

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<v Speaker 6>The breadth and depth of his deception is so staggering

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<v Speaker 6>that it cries out for congressional punishment.

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<v Speaker 9>Congressman Tourist says, after seven months of delay by the House,

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<v Speaker 9>Republicans doing nothing is no longer an option. Phoenix has

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<v Speaker 9>set to break a record today with heat. Phoenix tiede

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<v Speaker 9>a record yesterday of eighteen straight days of one hundred

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<v Speaker 9>ten degrees or higher, and the forecast is for it

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<v Speaker 9>to be one hundred and seventeen degrees every day through

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<v Speaker 9>the end of the week. Hollywood's historic double strike continues

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<v Speaker 9>as actors have joined writers on the picket line. Entertainment

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<v Speaker 9>attorney Jonathan Handel says the studios and unions aren't anywhere

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<v Speaker 9>close to an agreement.

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<v Speaker 11>I have a fear that there may be nothing in

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<v Speaker 11>the current dynamic that will drive the parties back to

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<v Speaker 11>the table until the.

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<v Speaker 9>Oscars actors are demanding higher pay and AI protections. Global

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<v Speaker 9>News twenty four hours a day, powered by more than

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<v Speaker 9>twenty seven hundred journalists and analysts in over one hundred

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<v Speaker 9>and twenty countries. I'm Michael Bard. This is Bloomberg, Nathan.

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<v Speaker 1>Thank you, Michael.

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<v Speaker 12>Time now for the Bloomberg Sports update. Here's John Stanshout.

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<v Speaker 12>Thanks Nathan. The losses just mounting for the Yankees. Seven

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<v Speaker 12>in the last nine, sixteen in the last twenty seven.

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<v Speaker 12>The Yankees are in sole possession of last place this

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<v Speaker 12>late in the season for the first time since nineteen

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<v Speaker 12>ninety In Anahe'm just like the day before. In Denver,

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<v Speaker 12>Yanks had a late three to one leads seventh inning.

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<v Speaker 12>Joe Hey Otani up as the Tine run.

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<v Speaker 13>Here's the pin the Swineys and drives them all deep

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<v Speaker 13>out in their left center field.

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<v Speaker 9>It's south by.

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<v Speaker 14>The wall.

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<v Speaker 13>Here, Hey, get to Johnny and Earnstone and tonight on

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<v Speaker 13>this Monday night is showtime.

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<v Speaker 9>Hey LAA.

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<v Speaker 15>Angels would then score tenth inning to win four to three.

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<v Speaker 15>The Yanks truckout seventeen times. John Carlos Stan Anthony Rizzo

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<v Speaker 15>combined zero for ten, striking out five times. Yanks got

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<v Speaker 15>a good start from Luis seven Arena. Then Michael King

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<v Speaker 15>came in, got only two outs, walk three, gave up

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<v Speaker 15>that O'tani homer, which was his thirty fifth. He's on

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<v Speaker 15>pace to hit sixty red Sox won seven nothing. In Oakland,

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<v Speaker 15>Will combined one hitter with eighteen strike ads, and that

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<v Speaker 15>drops the Yanks to sole possession of the seller. As expected,

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<v Speaker 15>the deadline passed, no new long term deal for the

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<v Speaker 15>Giant Saquon Barkley. The same thing happened to a couple

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<v Speaker 15>of other top running backs. The Raiders Josh Jacobs, the

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<v Speaker 15>Cowboys Tony Pollard all figured to play on the franchise tag.

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<v Speaker 15>Although Barkley may not be in a hurry to sign it,

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<v Speaker 15>he can then skip training camp and not be fined.

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<v Speaker 15>The sale to Washington Commanders from Dan Snyder to Josh

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<v Speaker 15>Harris King namsly approved by the NFL Finance Committee, heads

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<v Speaker 15>to a vote of all the owners. The Jets reluctantly

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<v Speaker 15>agreed to be on HB Those Hard Knocks Training Camp

0:10:01.440 --> 0:10:05.000
<v Speaker 15>reality show. They demanded that scenes where they cut players

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<v Speaker 15>not to be shown. N Dashaward Bloomberg Sports.

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<v Speaker 9>From coast to coast, from New York to San Francisco,

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<v Speaker 9>Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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<v Speaker 9>Business app in Bloomberg dot Com.

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<v Speaker 5>This is Bloomberg Daybreak.

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<v Speaker 7>Good morning.

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<v Speaker 9>I'm Nathan Hager.

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<v Speaker 10>Kathy Wood.

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<v Speaker 3>She is a big name on Wall Street, known for

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<v Speaker 3>her bets on tech companies like Tesla, Twitter, and in Nvidia.

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<v Speaker 3>She did miss out on the latest Games Foreign video though,

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<v Speaker 3>selling shares before the aikraze sent the chip maker soaring.

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<v Speaker 5>Well.

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<v Speaker 3>Now we're getting Kathy Wood's view on the broader tech

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<v Speaker 3>industry and what's next for equities in the space. The

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<v Speaker 3>Arc Investment Management CEO sat down for an interview with

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<v Speaker 3>our colleagues Carol Master and Matt Miller late yesterday. Let's

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<v Speaker 3>listen into that conversation now with Kathy Wood.

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<v Speaker 16>Kathy, nice to have you back. Matt and I were

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<v Speaker 16>just talking before we got going. Nasdaq one more than

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<v Speaker 16>forty percent best first half for the index. Investors are

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<v Speaker 16>definitely chasing risk this year, anything that feels euphoric, irrationally

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<v Speaker 16>in your view, that maybe we need a little bit

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<v Speaker 16>of a correction here.

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<v Speaker 8>You know, what's interesting is to see funds having nice

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<v Speaker 8>moves and flows not follow I don't think. I think

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<v Speaker 8>there's a wall of worry up out there. It is

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<v Speaker 8>about further interest rate increases. What's going to break next,

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<v Speaker 8>It's about a hard landing. It's about a hard landing

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<v Speaker 8>in the context of now China and Europe really seeing

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<v Speaker 8>struggling and how will that reverberate. So we actually think

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<v Speaker 8>that and we've been saying this for some time, that

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<v Speaker 8>deflation is the bigger risk out here, and I think

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<v Speaker 8>we're going to see an unwinding of auto prices. That

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<v Speaker 8>the Ford F one fifty lightnings price decline is going

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<v Speaker 8>to be the first of many, many auto cuts that

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<v Speaker 8>we'll see. And if you remember, during the early stage

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<v Speaker 8>of COVID and the supply shocks, at one point the

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<v Speaker 8>combination of used cars and new cars accounted for a

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<v Speaker 8>third of the increase in inflation. I think you'll see

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<v Speaker 8>that on the downside here, and we're going to get

0:12:20.720 --> 0:12:23.880
<v Speaker 8>to two percent inflation, I think, much faster than many

0:12:23.960 --> 0:12:29.440
<v Speaker 8>people think, with perhaps a harder landing, more for corporate

0:12:29.600 --> 0:12:33.319
<v Speaker 8>margins than anything else, because if you see these discounting

0:12:33.880 --> 0:12:38.280
<v Speaker 8>and you see consumers respond to discounts, maybe real growth

0:12:38.440 --> 0:12:41.600
<v Speaker 8>kind of. I still think we'll have a harder landing,

0:12:41.960 --> 0:12:45.520
<v Speaker 8>but maybe with price declines we'll stave that off.

0:12:45.559 --> 0:12:46.440
<v Speaker 14>That hard landing.

0:12:46.880 --> 0:12:49.400
<v Speaker 11>For a while, well, we were hearing investors say that

0:12:49.679 --> 0:12:53.600
<v Speaker 11>inflation is no longer concern number one. Growth is really

0:12:53.880 --> 0:12:57.200
<v Speaker 11>what the market is concerned about now. And so you

0:12:57.240 --> 0:12:59.360
<v Speaker 11>think we're going to have a recession, Kathy.

0:12:59.600 --> 0:13:04.760
<v Speaker 8>Yeah, If you look at real corporate revenue growth, it's

0:13:04.920 --> 0:13:07.959
<v Speaker 8>down one point one percent year over year as of

0:13:08.920 --> 0:13:12.359
<v Speaker 8>that was as of the first quarter. That is consistent

0:13:12.679 --> 0:13:17.840
<v Speaker 8>with gross domestic income down one point one percent. This

0:13:17.920 --> 0:13:20.760
<v Speaker 8>is real gross domestic income down one point one percent

0:13:20.800 --> 0:13:25.240
<v Speaker 8>year over year. Gross domestic income and gross domestic product

0:13:25.440 --> 0:13:29.400
<v Speaker 8>over time equal one another. It's an identity, but the

0:13:29.440 --> 0:13:33.160
<v Speaker 8>information flows are different. And income you get a lot

0:13:33.200 --> 0:13:35.760
<v Speaker 8>from the IRS, a lot.

0:13:35.559 --> 0:13:36.400
<v Speaker 14>Of income data.

0:13:36.880 --> 0:13:41.760
<v Speaker 8>The product data, product and service data is a little

0:13:41.800 --> 0:13:46.040
<v Speaker 8>bit more sampled and erratic, but over time, so we

0:13:46.240 --> 0:13:51.079
<v Speaker 8>could already be in that downturn. And the GDP numbers

0:13:51.120 --> 0:13:52.240
<v Speaker 8>we'll just catch up later on.

0:13:52.400 --> 0:13:54.920
<v Speaker 11>What about the inflation numbers. I mean, we come down

0:13:54.960 --> 0:13:57.720
<v Speaker 11>over the last year from nine point one percent CPI

0:13:58.000 --> 0:14:01.560
<v Speaker 11>to three that's pretty quick. And you know, I've talked

0:14:01.600 --> 0:14:03.480
<v Speaker 11>to you a couple of times in the last couple

0:14:03.480 --> 0:14:06.120
<v Speaker 11>of years and you've mentioned a concern about deflation rather

0:14:06.160 --> 0:14:08.120
<v Speaker 11>than inflation. Do you think we're going to start to

0:14:08.160 --> 0:14:10.920
<v Speaker 11>see that coming as we see it in other major economies,

0:14:11.000 --> 0:14:12.000
<v Speaker 11>most notably China.

0:14:12.520 --> 0:14:18.520
<v Speaker 8>Yes, it's very interesting to Chinese Deflation is so their

0:14:18.559 --> 0:14:22.800
<v Speaker 8>price prices are down according to the PPI five point

0:14:22.880 --> 0:14:25.240
<v Speaker 8>four percent year over year, and I do believe they

0:14:25.280 --> 0:14:30.160
<v Speaker 8>are going to export it over time. So yes, we

0:14:30.240 --> 0:14:32.760
<v Speaker 8>do think we're going to see price deflation but there

0:14:32.760 --> 0:14:35.680
<v Speaker 8>are two flavors of deflation. There's good and there's bad.

0:14:36.240 --> 0:14:39.720
<v Speaker 8>The good deflation has to do with innovation, and we

0:14:39.760 --> 0:14:44.040
<v Speaker 8>have centered our research around five major platforms, all of

0:14:44.080 --> 0:14:48.360
<v Speaker 8>which are technologically enabled and deflationary, and they're becoming a

0:14:48.400 --> 0:14:52.800
<v Speaker 8>bigger part of the pie electric vehicle sales. For example,

0:14:53.560 --> 0:14:57.239
<v Speaker 8>Tesla's making sure that it's passing along the cost declines

0:14:57.280 --> 0:15:03.000
<v Speaker 8>from its drive electric drive trains to consumers so that

0:15:03.040 --> 0:15:07.120
<v Speaker 8>it can sustain demand. Anything having to do with innovation,

0:15:08.560 --> 0:15:11.920
<v Speaker 8>the best companies are going to pass those costs along

0:15:12.000 --> 0:15:14.920
<v Speaker 8>to the consumers. And so I think you're going to

0:15:14.920 --> 0:15:20.600
<v Speaker 8>see much broader based deflation in not only the transportation sector,

0:15:20.920 --> 0:15:27.720
<v Speaker 8>but perhaps everywhere because artificial intelligence training costs AI training

0:15:27.760 --> 0:15:33.480
<v Speaker 8>costs are dropping. Get this, seventy percent per year. Seventy

0:15:33.520 --> 0:15:36.840
<v Speaker 8>percent per year. Now that's the good deflation is causing

0:15:36.920 --> 0:15:38.200
<v Speaker 8>booms in activity.

0:15:38.720 --> 0:15:40.760
<v Speaker 14>But we do know that.

0:15:40.760 --> 0:15:45.640
<v Speaker 8>Disruptive innovation will disturb or disintermediate the traditional world order.

0:15:46.400 --> 0:15:49.480
<v Speaker 8>Think electric vehicles and gas powered vehicles. You know, these

0:15:49.520 --> 0:15:53.520
<v Speaker 8>auto companies ninety to ninety five percent of their revenues

0:15:53.520 --> 0:15:56.800
<v Speaker 8>are still tied to the internal combustion engine.

0:15:57.040 --> 0:16:00.800
<v Speaker 16>So, Kathy, when people talk about AI. Do you think

0:16:00.840 --> 0:16:04.240
<v Speaker 16>it's going to upend the labor market substantially.

0:16:04.920 --> 0:16:08.800
<v Speaker 8>The history of technology over time is that it's a

0:16:08.840 --> 0:16:13.640
<v Speaker 8>net job creator. In the short term, you'll see some displacement,

0:16:13.720 --> 0:16:18.360
<v Speaker 8>You'll need some retraining. But I like to remind people

0:16:18.400 --> 0:16:20.840
<v Speaker 8>about the Internet. In the early days of the Internet,

0:16:20.920 --> 0:16:22.760
<v Speaker 8>when we're trying to figure out what it was and

0:16:22.800 --> 0:16:26.320
<v Speaker 8>how it was going to work, we had no idea

0:16:27.920 --> 0:16:33.800
<v Speaker 8>about Uber or Airbnb businesses that could not exist without

0:16:33.840 --> 0:16:36.160
<v Speaker 8>the Internet. And I think the same is going to

0:16:36.160 --> 0:16:39.360
<v Speaker 8>be true in the AI world as well. I think

0:16:39.360 --> 0:16:43.000
<v Speaker 8>it's going to be a tremendous boon to productivity. It

0:16:43.080 --> 0:16:49.920
<v Speaker 8>is the equivalent for knowledge workers of the assembly line

0:16:50.640 --> 0:16:51.880
<v Speaker 8>in the industrial age.

0:16:51.960 --> 0:16:56.440
<v Speaker 14>This is the new assembly line. And you know what happened.

0:16:56.120 --> 0:16:59.720
<v Speaker 8>Because of the original assembly line, Well, a lot of

0:16:59.720 --> 0:17:01.160
<v Speaker 8>people left the farms.

0:17:01.400 --> 0:17:03.280
<v Speaker 14>There are a lot of farmers then and.

0:17:03.360 --> 0:17:08.080
<v Speaker 8>Moved into businesses and activities that they didn't dream were

0:17:08.119 --> 0:17:09.120
<v Speaker 8>possible before that.

0:17:09.200 --> 0:17:10.760
<v Speaker 14>And I think the same will prove true. Now.

0:17:10.920 --> 0:17:12.920
<v Speaker 11>Hey, it love it little Henry Ford history there.

0:17:12.960 --> 0:17:15.359
<v Speaker 16>I like it, love love, love no, but it's like

0:17:15.560 --> 0:17:17.719
<v Speaker 16>this big picture. One thing I want to ask you,

0:17:17.800 --> 0:17:19.280
<v Speaker 16>kind of whittling it down a little bit.

0:17:19.320 --> 0:17:19.600
<v Speaker 2>You know.

0:17:19.920 --> 0:17:22.159
<v Speaker 16>One of the things in the headlines today has to

0:17:22.200 --> 0:17:24.040
<v Speaker 16>do about Dad j Oones. You did an interview and

0:17:24.080 --> 0:17:26.600
<v Speaker 16>you talked about Twitter and writing down your stake in

0:17:26.640 --> 0:17:29.199
<v Speaker 16>Twitter by I think about forty seven percent since Elon

0:17:29.640 --> 0:17:32.280
<v Speaker 16>took it over. You're still bullish long term, So help

0:17:32.359 --> 0:17:36.040
<v Speaker 16>me understand that right down against a long term bullish view.

0:17:36.400 --> 0:17:40.280
<v Speaker 8>Sure that we have no choice in this. This is

0:17:40.720 --> 0:17:45.679
<v Speaker 8>we have a pricing committee. We calculate our net asset

0:17:45.760 --> 0:17:50.679
<v Speaker 8>value for the ARC Venture Fund every day and we

0:17:50.720 --> 0:17:53.359
<v Speaker 8>get a lot of markers. There's trading on the secondary

0:17:53.440 --> 0:17:57.080
<v Speaker 8>market less. So with Twitter, we are trying to find

0:17:57.119 --> 0:17:59.679
<v Speaker 8>some Twitter. We love to buy some at this level.

0:18:00.400 --> 0:18:03.239
<v Speaker 8>But while a Fidelity has marked it down and some

0:18:03.280 --> 0:18:09.960
<v Speaker 8>of the other large managers have marked their positions down

0:18:10.160 --> 0:18:15.000
<v Speaker 8>dramatically based on yes, we are still getting information about

0:18:15.040 --> 0:18:19.040
<v Speaker 8>advertising sales not picking up dramatically yet, but they're in

0:18:19.280 --> 0:18:24.440
<v Speaker 8>very early stage. With Linda joining the team, we'd love

0:18:24.520 --> 0:18:28.159
<v Speaker 8>to buy it. We think longer term. We think that

0:18:29.280 --> 0:18:33.280
<v Speaker 8>Elon understands what a super app is. After all, he

0:18:33.440 --> 0:18:36.960
<v Speaker 8>did get started in the payment space and sold his

0:18:37.040 --> 0:18:42.439
<v Speaker 8>company to PayPal. In the last week, Twitter has gotten

0:18:43.000 --> 0:18:47.800
<v Speaker 8>money transmitter licenses from three or four states, and they're

0:18:47.840 --> 0:18:52.200
<v Speaker 8>going to cover the land and we chat pay taught

0:18:52.280 --> 0:18:56.240
<v Speaker 8>us a lot about what a super app is in

0:18:56.359 --> 0:19:03.040
<v Speaker 8>terms of not only information flow, but financial activities and commerce.

0:19:03.960 --> 0:19:07.480
<v Speaker 8>So we think Elon has grand plans, and you know,

0:19:07.480 --> 0:19:10.880
<v Speaker 8>it's also been interesting. I think some of these markdowns

0:19:11.080 --> 0:19:12.680
<v Speaker 8>may be a result of Threads.

0:19:12.800 --> 0:19:13.320
<v Speaker 14>I don't know.

0:19:14.080 --> 0:19:18.080
<v Speaker 8>I don't get involved in that decision making, but if

0:19:18.080 --> 0:19:22.840
<v Speaker 8>you look at Threads already, the engagement activity is plummeting.

0:19:23.320 --> 0:19:27.080
<v Speaker 8>I think people know that Threads is no Twitter.

0:19:29.800 --> 0:19:32.720
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