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Speaker 1: From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed loved Love.

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Speaker 2: I'm Caroline heindet Bloomberg's World headquarters in New York and.

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Speaker 3: I met Lovelow in San Francisco. This his Bloomberg Technology

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Speaker 3: coming up.

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Speaker 2: The FTX founder Sam Macmnfried is found guilty in his

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Speaker 2: full trial, now facing decades in prison. We'll break down

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Speaker 2: the decision to discuss what it means for the broader

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Speaker 2: crypto industry.

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Speaker 3: Plus Apple shares taking a hit after the world's most

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Speaker 3: valuable company warns of a sluggish holiday quarter and some

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Speaker 3: weakness in China.

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Speaker 4: We have full coverage ahead.

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Speaker 2: And we'll have an exclusive interview with the CEO of

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Speaker 2: Zieman's as the company invests half a billion dollars in

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Speaker 2: new US manufacturing.

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Speaker 5: Let's check out these markets.

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Speaker 2: It is a macro picture one of a calling jobs market,

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Speaker 2: which means maybe we're in Goldilock scenario. People buy on

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Speaker 2: the fact that maybe the Federal Reserve can indeed rest

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Speaker 2: on their laurels for a little bit. Now we're seeing

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Speaker 2: the anaunsdak currently at one point one percent. I mean

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Speaker 2: having an absolute phenomenal week, best week of the entire year.

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Speaker 5: So two is the S and P five hundred.

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Speaker 2: In fact, the thirty year yield dips down some some

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Speaker 2: basis points on the day.

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Speaker 5: Last three days we've seen the thirty year.

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Speaker 2: Yield plunge the most since back in the pandemic, so

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Speaker 2: notable moves in the bond market and the stock market.

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Speaker 5: We're looking at the.

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Speaker 2: Dollar index off by almost a four percentage point down

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Speaker 2: against every major currency that we currently see because we

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Speaker 2: start to anticipate a less hawkish FED.

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Speaker 5: Let's look at what means for.

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Speaker 2: The world of crypto, which were gonna be digging into

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Speaker 2: much more this entire hour head And actually we saw

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Speaker 2: a little bit of a pop over the last well

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Speaker 2: they are training first and second and November, but in

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Speaker 2: general we're range band once again below that thirty five

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Speaker 2: thousand dollars level. It's notable that we're actually climbed just

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Speaker 2: slightly over the last five days, but.

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Speaker 5: Really we do seem to have seen a peek in

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Speaker 5: the buying. Maybe we now need.

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Speaker 2: To die what the ramifications of Sam Magmin Freed's guilty

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Speaker 2: verdict means for broader crypto at large.

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Speaker 5: Ed what are you watching.

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Speaker 4: Well, the other big story, which is Apple.

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Speaker 3: You know, this was the one we were waiting for,

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Speaker 3: and largely we got what we expected, the fourth straight

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Speaker 3: quarter of overall sales to climb for Apple. We have

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Speaker 3: to go back two decades, two thousand and one to

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Speaker 3: the last time Apple had a slump like that. In

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Speaker 3: the show, We're going to go deep on China in particular,

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Speaker 3: they had very clear explanation for what Apple thinks is

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Speaker 3: happening in China, but basically they missed estimates, saying iPhone

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Speaker 3: was actually strong, a record revenue quarter for iPhone, but

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Speaker 3: weakness in iPad and Max. So much to discuss, and

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Speaker 3: it's kind of strange because there's so much news. Thursday

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Speaker 3: night was wild in the world of technology, right. Apple

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Speaker 3: was a big story in the moment, and then it

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Speaker 3: quickly became a clipse. But we will bring you that

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Speaker 3: analysis throughout the hour.

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Speaker 2: We will. Meanwhile, though, let's get back to the discoy

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Speaker 2: STUFFTX found the Sam Magman freed. He's been found guilty

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Speaker 2: of seven counts of fraud and conspiracy following a month

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Speaker 2: long trial that pitted the testimony of the former crypto

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Speaker 2: king against those of some of his closest friends joining

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Speaker 2: us now someone who is in that courtroom when we

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Speaker 2: saw very swiftly this verdict decidedly most uti Yang, Just

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Speaker 2: what was it like.

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Speaker 5: To be getting that sort of response that quickly.

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Speaker 6: It was a complete surprise. Nobody expected the result will

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Speaker 6: come out so quickly. The verdict with the deliberation started

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Speaker 6: shortly after three pm on Thursday, and some people just

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Speaker 6: left the courthouse and went home because usually for cases

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Speaker 6: of this skill, jury will take sometimes or even days

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Speaker 6: to deliberate it. But it turns out regard the verdict

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Speaker 6: shortly before a pm. So the jury really took a

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Speaker 6: quick turnaround turnaround on this and we find out that

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Speaker 6: Sam was convicted on all counts.

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Speaker 2: Very few people ultimately able to be there to witness that.

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Speaker 5: Momently.

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Speaker 2: Can you just tell us sort of what the realc

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Speaker 2: action was of someone said himself of his own lawyers, for.

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Speaker 6: Example, Yeah, I will start by saying that earlier in

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Speaker 6: the night, there's actually some lighthearted moments. The first jury

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Speaker 6: note came out and the judge said there are only

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Speaker 6: three words written on it, which is we want cars,

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Speaker 6: and that's what the jury was asking for. They wanted

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Speaker 6: to get transportation provided for them when they go home

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Speaker 6: after finishing the night, and when the judge announced that,

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Speaker 6: the entire quruom just burst into laughter. Nobody expected that

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Speaker 6: to be the first jury note, and even sent himself

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Speaker 6: he was laughing. It was probably the biggest laugh of

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Speaker 6: seeing him throughout this trial. But then I would say

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Speaker 6: that the mood really darkened later into the night and

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Speaker 6: when we find out that there's gonna be a verdict,

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Speaker 6: the entire quurum was just quiet.

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Speaker 5: You could just.

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Speaker 6: Feel the sense of suspense, the sense of nervousness among people.

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Speaker 6: And eventually the judge was the one reading out the verdict.

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Speaker 5: Sam rose up.

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Speaker 6: As he listened to the verdict, he was clapping his

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Speaker 6: hands in front of him, standing very uptight, didn't really

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Speaker 6: have much facial expression on his face, and as he

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Speaker 6: listened to the verdict guilty, guilty for every single count,

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Speaker 6: he just kind of had this uh serious look on

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Speaker 6: his face. And that meanwhile, his parents were just you

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Speaker 6: could tell they were devastated. The dad, Joe Bankman, he

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Speaker 6: kind of doubled down and looked down. And after the

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Speaker 6: verdict was announced, the parents, at the end of this proceeding,

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Speaker 6: they tried to approach sent back free from the back,

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Speaker 6: but they really couldn't get to him because there is

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Speaker 6: a barricade that kind of separated the courthouse quom between

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Speaker 6: the gallery and where the lawyers are.

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Speaker 7: And Sam was.

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Speaker 6: Immediately escorted out by US Marshals and on his way out,

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Speaker 6: he took a brief glance back at his parents, and

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Speaker 6: there's a slight nod and acknowledgement at his parents, and

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Speaker 6: then he was gone.

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Speaker 3: Bloomboth Utu Yang incredible reporting of the events that took

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Speaker 3: place in that New York courtroom on Thursday evening, and

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Speaker 3: later in the show we will get more reaction from

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Speaker 3: the crypto industry for what this symbolizes, much more broadly

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Speaker 3: than the events of Thursday. The other top story that

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Speaker 3: we have to get back to here on Bloombow Technology

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Speaker 3: is Apple's earnings. We're going to bring in Forester Research

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Speaker 3: principal analyst juliasc who I'm delighted to say is with

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Speaker 3: us here in San Francisco. You heard me at the

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Speaker 3: top of the show. We kind of got what we

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Speaker 3: thought was coming, four straight quarter of overall sales decline.

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Speaker 3: But then you dig down by product and number and

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Speaker 3: it's much more complicated.

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Speaker 4: We start with China. What was your takeaway there?

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Speaker 1: So, I said, I listened to most of the comments

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Speaker 1: from Tim Cook, and I understand the elements about the smartphone.

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Speaker 1: What I thought was interesting about and interesting about his

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Speaker 1: announcements is Apple had growth in some of the largest

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Speaker 1: economies in the world, right places they haven't traditionally been

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Speaker 1: strong or had a lot of sales. And you heard

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Speaker 1: him talk about China with record growth and smartphones. You

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Speaker 1: heard him talk about India. You talk and talk about

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Speaker 1: Indonesia and three of the largest you know economies, well

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Speaker 1: not economies but country you know, popular markets markets in

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Speaker 1: the world. And I thought that was encouraging that they're

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Speaker 1: looking for growth beyond their existing customer base and outside

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Speaker 1: of the Americas, which have to really been their strength.

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Speaker 3: Okay, So in Greater China sales fell two percent year

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Speaker 3: on year, but Apple said that on a constant currency basis,

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Speaker 3: they would have grown. What they said was that in

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Speaker 3: Greater China, iPhone had a record quarter and the drag

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Speaker 3: in sales was principally in mac an iPad, where in

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Speaker 3: that quarter there have been no refresh.

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Speaker 4: On the product.

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Speaker 3: What's the conclusion we draw, We just take it at

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Speaker 3: face value that actually iPhone's doing fine.

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Speaker 1: There, So not being a financial analyst, I would have

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Speaker 1: to take it at face value. But I think there's

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Speaker 1: a couple of things in place. Like one of them

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Speaker 1: is is this the upgrade cycles are slower. If we

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Speaker 1: think back to when we first had phones or smartphones,

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Speaker 1: we were upgrading those every eighteen to twenty four months,

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Speaker 1: and that upgrade cycle is probably closer to three to

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Speaker 1: four years now. The second thing I take into account

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Speaker 1: when we think about, you know, the markets, is this

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Speaker 1: isn't their biggest quarter. You know, we're coming into holiday season,

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Speaker 1: which is by far the biggest quarter for Apple and

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Speaker 1: for every retailer that's there. And when we look at

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Speaker 1: our data, we have twenty four percent of US online

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Speaker 1: consumers saying they're going to spend more forty percent at

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Speaker 1: least the same as last year. And we've got almost

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Speaker 1: twenty five percent of ansumers saying they're going to spend

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Speaker 1: that money on consumer electronics. So I think also as

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Speaker 1: we look forward, there's some optimism at least for this

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Speaker 1: holiday season.

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Speaker 5: And yet the guidance wasn't one of optimism.

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Speaker 2: And to that extent, do you think this is just

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Speaker 2: Apple being typically cautious in this respect.

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Speaker 1: Yeah, there's probably Apple being typically cautious. I think Apple

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Speaker 1: in some ways also they hold their what do they

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Speaker 1: call it, They hold their cards close to their chest.

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Speaker 1: I mean Apple is play playing a long game here.

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Speaker 1: When Tim Cook talked about the ecosystem of hardware, software

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Speaker 1: and services, they had a new chipset come out about

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Speaker 1: I think it was a week, maybe it was just

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Speaker 1: this week, right, Their products get better with each generation

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Speaker 1: of chips that come out. You look at more than

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Speaker 1: one billion active subscribers and two billion active devices. Those

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Speaker 1: folks are spending a lot of money with Apple, and

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Speaker 1: those are just the services we pay for, right. But

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Speaker 1: it's payments, it's healthcare, it's maps, it's email, it's everything

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Speaker 1: we do one hundred or two hundred times a day.

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Speaker 1: And I do believe that they're playing a long game here.

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Speaker 1: That make it suddenly you know they're chasing acquisition. But

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Speaker 1: also the switching costs off of Apple are very high

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Speaker 1: these days for anyone who has bought into the Apple ecosystem,

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Speaker 1: and I think that's a real place of strength for Apple.

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Speaker 2: Ultimately, this becomes there for a global narrative and one

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Speaker 2: of which we are will worried about China, will worried

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Speaker 2: about the implications long a term. But do you think

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Speaker 2: that competition from the android sphere is getting more real,

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Speaker 2: more ferocious, more clear, and the nationalism playing into this respect.

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Speaker 1: So I think I don't follow in the Chinese market

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Speaker 1: as closely, but I think certainly that's an element in

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Speaker 1: a market, you know, like China or India. You know,

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Speaker 1: when we think about Apple and smartphones, they're certainly chasing

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Speaker 1: the top end of the market. It's a very profitable

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Speaker 1: device for them. And not every company that's selling smartphones

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Speaker 1: is always selling is you know.

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Speaker 4: The goals and problem.

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Speaker 1: You know, some companies make money in other ways. You know,

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Speaker 1: it could be the telecom providers, it's advertising, And there's

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Speaker 1: a lot of different business models in China and Indian

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Speaker 1: and some of these other countries that are less prevalent

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Speaker 1: here in the United States that make the sale of

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Speaker 1: the smartphone you know, I would say less important in

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Speaker 1: some of those markets in terms of total revenue.

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Speaker 5: Judy, it's always.

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Speaker 2: Great to get your expertise and thank you for it

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Speaker 2: for us, A research principal analyst, Judy Ask. Meanwhile, we're

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Speaker 2: going to stick in the Apple verse. Fox Con is

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Speaker 2: best known of course I building iPhones, but now it's

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Speaker 2: putting big on gifts, what electric vehicles. We spoke exclusively

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Speaker 2: with a fox Con chairman, NC young new about his

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Speaker 2: belief in an electric future.

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Speaker 5: Take a listen.

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Speaker 8: After four years, we're becoming more and more excited because

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Speaker 8: the more we learned about this new industry, the more

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Speaker 8: we believe this is the right industry for FASCA to

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Speaker 8: go into because with fastcas experience and its scale, and

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Speaker 8: it creates big enough entry barriers for our competitors in

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Speaker 8: the ICT industry to go into.

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Speaker 9: How big is the opportunity for fox Cone in terms

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Speaker 9: of the market size and also for the company's capabilities.

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Speaker 8: For the market size, We did a study when we

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Speaker 8: started about three or four years ago. At that time,

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Speaker 8: the market at twenty twenty five was estimated at six

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Speaker 8: hundred billion US dollars big, So this is big enough.

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Speaker 8: If we can and get you know, like ten percent

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Speaker 8: of it, it will be sixty billion and fast kind

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Speaker 8: of running it about two hundred seventy ash you know

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Speaker 8: that kind of market, that kind of revenue. So with

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Speaker 8: sixty billion, it's about two points some twenty five percent

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Speaker 8: around that figure.

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Speaker 9: You're building a factory from the ground up in Thailand.

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Speaker 9: You bought a factory for this project in Ohio. First

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Speaker 9: of all, what did you think when you visited the

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Speaker 9: facility in Lordstown, Ohio.

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Speaker 8: Well, it's huge facilities, with a lot of histories and

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Speaker 8: a lot of capabilities. We think we can do a

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Speaker 8: lot by converting that factory to a EV factory. And

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Speaker 8: also because the surrounding environment they used to do I

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Speaker 8: would say five hundred thousand cars a year at that

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Speaker 8: kind of capacities, Definitely, you have to have enough supply

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Speaker 8: chain in the area in order to support that kind

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Speaker 8: of production. And with the supply chain almost there, with

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Speaker 8: the location with the space that is big enough, so

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Speaker 8: we think it will be very good now for the

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Speaker 8: EV production there.

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Speaker 3: Fox CON's chairman and CEO Young Lewin's a pretty incredible

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Speaker 3: exclusive coming out of Asia from Loombog's reed Stevenson Semen's

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Speaker 3: announcing more than five hundred million US dollars in manufacturing

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Speaker 3: investments in the US to support rapidly growing industries like

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Speaker 3: data centers, semiconductor, and battery manufacturing. And that includes a

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Speaker 3: new one hundred and fifty million manufacturing plant in the

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Speaker 3: Dallas Fort Worth area in Texas. Semen's global CEO Roland

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Speaker 3: Bush joins us now from Dallas. Big News, Doctor Bush,

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Speaker 3: thank you for your time on Bloomberg technology. How much

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Speaker 3: of this is being pushed by the IRA and the

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Speaker 3: incentives that were on offer to establish a supply chain

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Speaker 3: here in this country.

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Speaker 10: Well, I mean our five hundred million investment program the

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Speaker 10: United States has two reasons. Of course, it's attractive environment

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Speaker 10: on the one side, but it's also our market. It's

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Speaker 10: our customers which we're asking for our technology. So you

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Speaker 10: know that. Earlier the year we announced on a twenty

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Speaker 10: million investment in North Carolina and Lexington. This is our

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Speaker 10: brand new rolling stock manufacturing plant and this is definitely

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Speaker 10: pulled by our customer. I mean, our customers are really

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Speaker 10: buying rolling stock trains for locomotives from US. And now

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Speaker 10: today we announced on a fifty million investment in Dallas

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Speaker 10: for Worth and this is about electric products. We are

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Speaker 10: basically supporting the data center industry and large language models

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Speaker 10: data centers with electrical products and that's a reason for investing.

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Speaker 10: And of course an attractive market environment is an add

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Speaker 10: on too.

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Speaker 3: Do you have a clear line of sight to the

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Speaker 3: funding that is available from the IRI. One of the

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Speaker 3: things I've heard from CEOs all over the world is

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Speaker 3: that on paper it's fantastic, but getting hold of the

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Speaker 3: funds and getting going on the project actually has some

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Speaker 3: latency to it.

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Speaker 10: Yeah, well, you know, the point is number one is

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Speaker 10: the funds. But for me, the most important point is

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Speaker 10: really people. When you talk about a manufacturing site, you

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Speaker 10: talk really about a fully automated and digitalized manufacturing site.

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Speaker 10: So you really have to get the right people on

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Speaker 10: the shop floor. We are training and educating people at

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Speaker 10: the same time, so will little of people in a

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Speaker 10: market which is fully scars of labor is one of

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Speaker 10: the biggest advantages. This is what we find here. And

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Speaker 10: if you're doubling down basically on our investment, which you

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Speaker 10: have already in Grand Prairie. Team did a great job

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Speaker 10: in really bring our business within three years on electoral

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Speaker 10: products and a strong customer demount comes together. So that

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Speaker 10: is a nice fit for investing in the United States

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Speaker 10: and particularly here in Texas.

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Speaker 3: Well, let's talk about Texas. You join us from Dallas,

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Speaker 3: the Dallas Fort Worth area. What was it about that

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Speaker 3: location that made it an attractive place? For you to

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Speaker 3: set up your supply chain there.

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Speaker 11: Yeah.

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Speaker 10: I mean, as I said before, it's a very attractive

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Speaker 10: environment from the government, what kind of support they provide.

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Speaker 10: Number two, it's forty miles away from Grand Prairie, where

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Speaker 10: we have already a full fledged manufacturing site for electoral equipment.

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Speaker 10: We have the people there, we have the supply base there,

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Speaker 10: we have the management, so it's easy to double down

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Speaker 10: our investment on already a very great team performance. And

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Speaker 10: then we found a nice place here, a very good place.

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Speaker 10: It's an existing site which was used for a warehouse

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Speaker 10: convert We are going to convert it now for manufacturing.

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Speaker 10: So it all comes together. And again this is a

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Speaker 10: very business frontier environment that you find here in Texas.

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Speaker 2: You talk about Delta Bush, your focus on an end user,

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Speaker 2: the client demand coming from the United States. Compare and

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Speaker 2: contrast that to Europe at the moment.

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Speaker 5: How much are.

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Speaker 2: You seeing clients having to dial back some of their

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Speaker 2: demand because of the macroeconomic environment.

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Speaker 10: What we do see is, let me start with the

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Speaker 10: energy intensive industries. They are really looking into the United

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Speaker 10: States because you have very low energy crisis, and that's

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Speaker 10: a big advantage on top cons your Inflation Reduction Act,

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Speaker 10: which is really supporting investment in the United States. So

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Speaker 10: this is where our customers. I mean, it's a chemic industry,

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Speaker 10: batrem factual data centers, but any kind of energy intensive

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Speaker 10: industry is moving to the United States. They're looking into

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Speaker 10: that market. And it's a market too, it's a big

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Speaker 10: market too, and we are in many many cases you're

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Speaker 10: following our customers to these markets and investing there. So

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Speaker 10: this is a very very positive environment. And you see

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Speaker 10: also semiconductors of following so all the energy intensive critical

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Speaker 10: infrastructure of businesses, they are coming to United States. This

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Speaker 10: is a clear trend. We do know that also Europe

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Speaker 10: is putting some support in subsidies for companies. This will

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Speaker 10: also get some investment. But the competitive edge on low

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Speaker 10: energy prices is a clear advantage for the United States.

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Speaker 4: Talked a bitch.

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Speaker 3: I'd love to discuss that competitive edge. Your home nation,

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Speaker 3: Germany and its economy is being debated by the technology

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Speaker 3: industry and at the same time, the EUS kind of

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Speaker 3: response to the Inflation Reduction Act as a place to

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Speaker 3: do business and incentivize investment. Talk to us about the

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Speaker 3: equation for you of Germany versus the United States.

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Speaker 10: I think you have to differentiate what kind of sectors

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Speaker 10: you're looking into. As I said, energy intensive industries, it's

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Speaker 10: very hard to defend. At the same time, we have

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Speaker 10: a very strong ecosystems, and Germany in particular, it's not

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Speaker 10: only the big companies, but it's all the whole ecosystem

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Speaker 10: of small and medium sized enterprises in machine tools, machine manufacturing,

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Speaker 10: but also for example, the medical industry, car industry, but

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Speaker 10: also to some extent from acehutical chemical. If you look

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Speaker 10: forward in the way how you can deploy new technologies

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Speaker 10: in these markets, that gives you an idea which kind

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Speaker 10: of industries you are able to defend or even expand.

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Speaker 10: It's all about technology. I mean, Germany is an export

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Speaker 10: countries and in the innovative countries, in the industrials country,

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Speaker 10: and this is the strength that we have to play

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Speaker 10: and we have to strength. And there's a reason why

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Speaker 10: I very much support also the subsidies which we're giving

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Speaker 10: into for Intel for example, but also for all Speed

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Speaker 10: and TSMC to invest in semiconductors industry in Germany because

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Speaker 10: we do have the right environment, the right people, educated people,

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Speaker 10: a good environment to really also go for this kind

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Speaker 10: of industry. So you have to look in a differentiated way,

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Speaker 10: and there's still industries which I believe have a great future,

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Speaker 10: but we have to build our strengths, produce ecosystems and technology.

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Speaker 3: Zemian's global CEO Rolandish, thank you for your time here

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Speaker 3: on blue Bed Technology.

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Speaker 4: Caroline.

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Speaker 2: Meanwhile, let's talk a little bit more about some of

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Speaker 2: the companies that are out performing on the day, Yelp

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Speaker 2: being one of them. We're going to be speaking with

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Speaker 2: the CFO next on the company's earnings and they're managing

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Speaker 2: to post double digit growth and revenue. This is Blombag Technology.

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Speaker 5: Time now for talking tech. First up, Jeff Bezos says, well,

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Speaker 5: he's moving to the East coast.

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Speaker 2: The Amazon founder is relocating from Seattle to the Miami

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Speaker 2: region in order to be close to his parents. The

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Speaker 2: Blue Origin operations of course as well in Cape Canafron. Meanwhile,

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Speaker 2: Xai will finally introduce this first AI model this weekend

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Speaker 2: to select group of people and the billionaire Elon Musk

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Speaker 2: started the bench over the summer. This comes million a

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Speaker 2: day after Mask reiterated that AI post is an existential

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Speaker 2: threat to humanity. That was over in the UK at

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Speaker 2: the AI Safety summit, plus a new bipartisan bill would

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Speaker 2: put the National Students Standards and Technology in chatter deploying

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Speaker 2: AI safety standards. The bill, proposed by two US senators

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Speaker 2: would direct this to provide federal agencies with safeguards for AI,

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Speaker 2: of which they would be required to adapt. Similar bill

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Speaker 2: is expected to be introduced in the House.

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Speaker 3: Ed all Right earnings Yelp shares popping after the company

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Speaker 3: reported earnings, boosting its net revenue and adjusted EBITDA forecast

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Speaker 3: for the full year. Joining US now delighted today CFO

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Speaker 3: David Schwartzbark David. Analysts are basically saying.

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Speaker 4: You're a juggernaut.

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Speaker 3: Tenth straight quarter of double digit revenue growth. I think

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Speaker 3: what's missing is the answer and what keeps that going.

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Speaker 12: Ed, It's good to be here. Is the tenth straight

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Speaker 12: quarterer of double digit growth for US. That's been against

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Speaker 12: the backdrop of what has certainly been a challenging environment

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Speaker 12: for digital advertising.

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Speaker 7: How have we done it well? It certainly starts with consumers.

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Speaker 12: Tens of millions of consumers come to Yelp every month

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Speaker 12: for our trusted reviews. We're obviously a household brand. When

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Speaker 12: they're making those critical decisions like going out on a

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Speaker 12: first date.

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Speaker 7: They want to go to the right restaurant.

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Speaker 12: But if you're spending a lot on remodeling your kitchen,

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Speaker 12: you really want to choose someone who's going to do

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Speaker 12: a great job for you. And around services in particular,

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Speaker 12: we've really leaned in. Fourteen percent growth in the third

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Speaker 12: quarter for service is twenty percent in home services. We

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Speaker 12: think we're taking market share and we're doing that while

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Speaker 12: driving Adjusted at EBITDA is a record quarter for us

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Speaker 12: at twenty eight percent adjusted EBITDA, and we think our

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Speaker 12: product led strategy is really working very well for us.

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Speaker 12: We think it's the best quarter in the company's history,

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Speaker 12: and we think that we're set up to have the

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Speaker 12: post here in the company's history.

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Speaker 4: David, We love the numbers.

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Speaker 3: I love digging deep into the financials, but with Yelp,

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Speaker 3: I just always want to know what the story is

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Speaker 3: right in this economy, with the priorities that consumers have,

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Speaker 3: what is the the psychology or driver that makes them

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Speaker 3: go on Yelp. What is it that the consumer is

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Speaker 3: doing that helps your business grow.

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Speaker 12: Well Against the backdrop of high inflation where things are

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Speaker 12: more expensive, it means people can't go out as often,

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Speaker 12: they can't do as many home projects, so they really

442
00:23:18,440 --> 00:23:21,080
Speaker 12: want to make sure they're making a good decision. And

443
00:23:21,119 --> 00:23:23,640
Speaker 12: what we found actually is that consumers are doing even

444
00:23:23,720 --> 00:23:27,320
Speaker 12: more research than ever before making those purchase decisions. And

445
00:23:27,359 --> 00:23:29,359
Speaker 12: the folks who are coming to you help, they're high intent.

446
00:23:29,400 --> 00:23:33,480
Speaker 12: They're actually ready to purchase their affluent. They are the

447
00:23:33,560 --> 00:23:36,520
Speaker 12: majority of folks have gone to college, they have advanced degrees,

448
00:23:36,880 --> 00:23:39,680
Speaker 12: and so they want to do that research before they

449
00:23:39,720 --> 00:23:41,000
Speaker 12: make that purchase decision.

450
00:23:42,200 --> 00:23:46,080
Speaker 2: I'm interested in these being record sets of numbers. You say,

451
00:23:46,240 --> 00:23:49,600
Speaker 2: perhaps the best quarter in history, yet your market capitalization

452
00:23:49,800 --> 00:23:52,720
Speaker 2: is half of where its best was back in twenty fourteen.

453
00:23:52,880 --> 00:23:55,439
Speaker 2: How can you can convince an investor base that you

454
00:23:55,480 --> 00:23:57,720
Speaker 2: are worth more, that the value of what you're bringing

455
00:23:58,200 --> 00:23:59,960
Speaker 2: is more to an investor right now?

456
00:24:01,040 --> 00:24:03,840
Speaker 12: Well, we really have transformed the company over the past

457
00:24:04,240 --> 00:24:07,720
Speaker 12: five years, and we moved from what was a sales

458
00:24:07,760 --> 00:24:11,119
Speaker 12: headcount driven growth model to a product led growth model,

459
00:24:11,359 --> 00:24:14,080
Speaker 12: and that product led growth model is paying off. We

460
00:24:14,119 --> 00:24:18,040
Speaker 12: obviously saw very strong adjustedy ebit don margin in the

461
00:24:18,080 --> 00:24:20,760
Speaker 12: third quarter, but over the long term, we think that

462
00:24:20,760 --> 00:24:24,679
Speaker 12: that product led model enables us to continue to deliver

463
00:24:24,800 --> 00:24:27,439
Speaker 12: profitable growth for the long term. You know, we're just

464
00:24:27,520 --> 00:24:31,600
Speaker 12: going through our planning process for twenty fourteen twenty four

465
00:24:32,000 --> 00:24:34,440
Speaker 12: and we're very excited about what we can achieve next

466
00:24:34,520 --> 00:24:35,840
Speaker 12: year that will enable us.

467
00:24:35,760 --> 00:24:37,960
Speaker 7: To deliver these types of consistent results.

468
00:24:38,320 --> 00:24:41,080
Speaker 2: How about globally speaking, David Hay, why can you pull

469
00:24:41,080 --> 00:24:43,199
Speaker 2: on leavers in terms of growth? We were just speaking

470
00:24:43,240 --> 00:24:47,040
Speaker 2: with a European based company, Zeeman's, which of course is

471
00:24:47,400 --> 00:24:49,520
Speaker 2: having a harder macro picture in Europe than it is

472
00:24:49,560 --> 00:24:52,639
Speaker 2: in the US. How do you see your ability to

473
00:24:52,760 --> 00:24:54,960
Speaker 2: continue to ride a wave of US outperformance?

474
00:24:56,640 --> 00:25:00,000
Speaker 12: US economy certainly has held in there and we've been

475
00:25:00,080 --> 00:25:03,240
Speaker 12: and very relevant to consumers that they made those decisions

476
00:25:03,240 --> 00:25:06,720
Speaker 12: as I was saying around inflation. But fundamentally, what we

477
00:25:06,800 --> 00:25:09,480
Speaker 12: want to be able to do is to really leverage

478
00:25:09,480 --> 00:25:14,120
Speaker 12: technology to continue to deliver value to consumers and to advertisers.

479
00:25:14,200 --> 00:25:16,200
Speaker 12: At the end of the day, we have to give

480
00:25:16,240 --> 00:25:18,919
Speaker 12: them value and they have to find us relevant.

481
00:25:19,080 --> 00:25:22,400
Speaker 7: We obviously generate that content through these user reviews.

482
00:25:22,680 --> 00:25:25,120
Speaker 12: We think it's really important for those to be trusted.

483
00:25:25,160 --> 00:25:27,919
Speaker 12: We want to be that trusted brand for folks, but

484
00:25:27,960 --> 00:25:30,639
Speaker 12: we also want to be the best possible place for

485
00:25:30,800 --> 00:25:34,920
Speaker 12: consumers to go to make purchase decisions, particularly around services,

486
00:25:35,000 --> 00:25:38,400
Speaker 12: so we're continuing to invest there. We're continuing to differentiate

487
00:25:38,440 --> 00:25:41,320
Speaker 12: the experience. We grew home services about twenty percent in

488
00:25:41,359 --> 00:25:43,719
Speaker 12: the third quarter. We think we're taking market share and

489
00:25:43,760 --> 00:25:46,200
Speaker 12: we think that that sets us up very well.

490
00:25:46,080 --> 00:25:46,679
Speaker 7: For the future.

491
00:25:47,440 --> 00:25:48,840
Speaker 5: David, great to have some time with you.

492
00:25:48,960 --> 00:25:52,600
Speaker 2: YEPCFO David shots back, really giving a really great macro

493
00:25:52,680 --> 00:25:53,399
Speaker 2: picture there for us.

494
00:25:53,560 --> 00:25:54,080
Speaker 13: Ed to you.

495
00:25:54,600 --> 00:25:54,840
Speaker 4: Yep.

496
00:25:55,080 --> 00:25:57,359
Speaker 3: It's Friday, which means for the final time this week

497
00:25:57,480 --> 00:26:00,240
Speaker 3: that's going to check in on those European markets. The

498
00:26:00,280 --> 00:26:02,480
Speaker 3: stock six hundred Europe it's the gauge we've been checking

499
00:26:02,520 --> 00:26:05,240
Speaker 3: in all week long because it's kind of cross. European

500
00:26:05,520 --> 00:26:08,240
Speaker 3: has had its best week since March, really rebounding. A

501
00:26:08,240 --> 00:26:10,760
Speaker 3: big part of that is the central banks story all

502
00:26:10,800 --> 00:26:13,440
Speaker 3: over the world, but also some European earnings feeding into it.

503
00:26:13,800 --> 00:26:15,760
Speaker 3: Kind of countering that. On the other side is the

504
00:26:15,760 --> 00:26:19,560
Speaker 3: geopolitical risk story and the Israel Hamas war has been

505
00:26:19,600 --> 00:26:22,720
Speaker 3: impacting Brent crude, which is kind of the global benchmark

506
00:26:22,720 --> 00:26:25,760
Speaker 3: for oil separate from WTI. We're down four percent on

507
00:26:25,800 --> 00:26:27,680
Speaker 3: the week. We've seen yields come down a little as well,

508
00:26:27,720 --> 00:26:30,200
Speaker 3: the German tenure burned two point six three percent, off

509
00:26:30,320 --> 00:26:33,000
Speaker 3: twenty basis points over the course of the week, and

510
00:26:33,080 --> 00:26:36,080
Speaker 3: euro dollar the euroeup one point six percent against the dollar.

511
00:26:36,200 --> 00:26:38,320
Speaker 3: It's been a fun week. We've been showing you European

512
00:26:38,320 --> 00:26:41,480
Speaker 3: markets because of the time difference at this time of year, but.

513
00:26:41,480 --> 00:26:44,320
Speaker 2: That's it, and those European markets end, as fun as

514
00:26:44,320 --> 00:26:47,080
Speaker 2: they are, have been dictated in large part by macroeconomic

515
00:26:47,119 --> 00:26:49,640
Speaker 2: policymaking over here in the United States, and of course

516
00:26:49,680 --> 00:26:50,480
Speaker 2: a lot of that's to do.

517
00:26:50,480 --> 00:26:53,000
Speaker 5: With a FED yesterday, well on Wednesday, indeed, but.

518
00:26:53,040 --> 00:26:54,840
Speaker 2: Also what's happening in terms of the data, the rich

519
00:26:54,920 --> 00:26:57,240
Speaker 2: data we're getting, and the cooling that we're getting in

520
00:26:57,280 --> 00:27:00,480
Speaker 2: the macroeconomy here in the USTAM of jobs perspective. Goldielock

521
00:27:00,520 --> 00:27:03,160
Speaker 2: scenario is on the stocks they rise. Here in technology,

522
00:27:03,160 --> 00:27:05,040
Speaker 2: we're up NAZAK one hundred and one point three percent,

523
00:27:05,400 --> 00:27:09,560
Speaker 2: basically best week for the big benchmarks since last year.

524
00:27:09,680 --> 00:27:10,359
Speaker 5: So clearly a.

525
00:27:10,359 --> 00:27:12,160
Speaker 2: Desire to be getting back into some of these stocks

526
00:27:12,160 --> 00:27:13,359
Speaker 2: that have been sold off. I'm looking at a two

527
00:27:13,440 --> 00:27:15,840
Speaker 2: year yield as you'll see currently dipping down. In fact,

528
00:27:15,880 --> 00:27:19,200
Speaker 2: across the board, we've seen bonds rallying, yields falling.

529
00:27:19,040 --> 00:27:20,520
Speaker 5: As we anticipate a less hawkish FED.

530
00:27:20,560 --> 00:27:22,000
Speaker 2: I'm also looking at what's happening in the world a

531
00:27:22,040 --> 00:27:24,600
Speaker 2: bitcoin and actually, interestingly, even though we've got a week

532
00:27:24,600 --> 00:27:27,399
Speaker 2: of dollar, significantly week of dollar, we're still seeing bitcoin

533
00:27:27,480 --> 00:27:28,920
Speaker 2: just to the downside. That seems to be a read

534
00:27:28,960 --> 00:27:31,880
Speaker 2: across more and what's happening in the world of court

535
00:27:31,920 --> 00:27:35,560
Speaker 2: decisions around Sam Bankman freed and FTX the guilty verdict dead.

536
00:27:36,400 --> 00:27:38,680
Speaker 3: Yeah, and that is the biggest story of the day,

537
00:27:38,720 --> 00:27:40,280
Speaker 3: one of the biggest stories of the year, and we'll

538
00:27:40,280 --> 00:27:44,080
Speaker 3: get back to it. Sam Bankman freed, convicted of a

539
00:27:44,119 --> 00:27:47,080
Speaker 3: massive fraud that led to the collapse of the FTX

540
00:27:47,119 --> 00:27:50,520
Speaker 3: exchange follows a month long trial where we heard from

541
00:27:50,560 --> 00:27:53,480
Speaker 3: Sam Banker and freed himself from some of his closest

542
00:27:53,480 --> 00:27:56,280
Speaker 3: friends and confidence. We want to go back and look

543
00:27:56,280 --> 00:27:58,800
Speaker 3: at how the trial played out. With Christine Adams, partner

544
00:27:58,880 --> 00:28:01,920
Speaker 3: at Adams, Dirk and Stein, who was over twenty five

545
00:28:02,000 --> 00:28:05,879
Speaker 3: years of experience as a former federal prosecutor specializing in

546
00:28:06,000 --> 00:28:09,879
Speaker 3: sec investigation and white collar crimes. Our reporter earlier in

547
00:28:09,880 --> 00:28:13,280
Speaker 3: the program painted the picture she was in the courtroom

548
00:28:13,320 --> 00:28:16,640
Speaker 3: the moment that the verdict was read out. Was the

549
00:28:16,800 --> 00:28:21,280
Speaker 3: verdict and the seven guilty counts that came a surprise.

550
00:28:20,880 --> 00:28:26,080
Speaker 14: To you, Honestly, No, I was a bit surprised that

551
00:28:26,160 --> 00:28:31,320
Speaker 14: the verdict came so rapidly, But I think everyone who

552
00:28:31,400 --> 00:28:35,960
Speaker 14: was watching this trial with some background and expertise saw this.

553
00:28:36,200 --> 00:28:37,639
Speaker 15: Ship sinking rapidly.

554
00:28:38,680 --> 00:28:42,120
Speaker 14: It was clear that Sam Bankman Bridge's testimony was going

555
00:28:42,160 --> 00:28:44,320
Speaker 14: to be what it ended up being, a hail Mary

556
00:28:44,400 --> 00:28:49,640
Speaker 14: passed that was not successful. There really wasn't a question

557
00:28:50,320 --> 00:28:54,400
Speaker 14: when the government kept being so simple and just simply

558
00:28:54,480 --> 00:28:58,800
Speaker 14: showed that Sam Bakeman Freed said one thing and did

559
00:28:59,080 --> 00:29:02,320
Speaker 14: entirely another, and that his image was basically a ruse

560
00:29:02,440 --> 00:29:05,760
Speaker 14: as part of this whole cryptocurrency.

561
00:29:04,840 --> 00:29:07,120
Speaker 4: Fraud, Christine.

562
00:29:07,160 --> 00:29:10,320
Speaker 3: The lead headline of Bloomberg this morning is SBF faces

563
00:29:10,320 --> 00:29:15,280
Speaker 3: decades in prison after swift guilty verdict. The facing decades

564
00:29:15,320 --> 00:29:19,440
Speaker 3: in prison part help our audience understand how that sentencing

565
00:29:19,520 --> 00:29:23,040
Speaker 3: process will work from this point.

566
00:29:22,800 --> 00:29:27,680
Speaker 14: So there is a set of guideline factors out there,

567
00:29:28,120 --> 00:29:30,240
Speaker 14: the US sentencing guidelines, but.

568
00:29:30,240 --> 00:29:32,040
Speaker 15: Those are entirely discretionary.

569
00:29:32,120 --> 00:29:35,600
Speaker 14: So the core is required to consider those various factors

570
00:29:35,840 --> 00:29:39,040
Speaker 14: and then make a determination in his own discretion how

571
00:29:39,160 --> 00:29:44,080
Speaker 14: those factors will apply to mister Bateman Freed's sentence. What's

572
00:29:44,240 --> 00:29:49,160
Speaker 14: driving the sentence that everyone's describing as possibly life is

573
00:29:49,200 --> 00:29:50,680
Speaker 14: the loss involved here.

574
00:29:50,760 --> 00:29:53,880
Speaker 15: Obviously there's millions, if not billions of.

575
00:29:53,840 --> 00:29:58,400
Speaker 14: Dollars lost here, So that's one main consideration. Another consideration

576
00:29:58,520 --> 00:30:02,520
Speaker 14: will be his leadership in the organization.

577
00:30:03,000 --> 00:30:05,440
Speaker 15: So what will happen is mister.

578
00:30:05,240 --> 00:30:09,160
Speaker 14: Bateman Freed will be subjected to an interview by pre

579
00:30:09,280 --> 00:30:12,080
Speaker 14: Child Service, by the Probation Office, and they'll prepare what's

580
00:30:12,080 --> 00:30:15,400
Speaker 14: called a pre sentence report and make a recommendation based

581
00:30:15,440 --> 00:30:18,960
Speaker 14: on his personal background, information and the factors around these

582
00:30:19,280 --> 00:30:22,440
Speaker 14: crimes that the defense and the government can then respond

583
00:30:22,440 --> 00:30:24,040
Speaker 14: to and the court will take all of that into

584
00:30:24,040 --> 00:30:27,000
Speaker 14: consideration in sentencing mister Bateman Freed.

585
00:30:27,680 --> 00:30:31,680
Speaker 2: His own legal team, of course, showed their disappointment regarding

586
00:30:31,720 --> 00:30:32,320
Speaker 2: the verdict.

587
00:30:32,640 --> 00:30:35,280
Speaker 5: Will they appeal and what sort of grounds might they use?

588
00:30:35,880 --> 00:30:38,280
Speaker 2: For example, I've seen lots that there was concern around

589
00:30:38,400 --> 00:30:42,080
Speaker 2: lack of well ability to access certain medicines for example.

590
00:30:42,840 --> 00:30:45,719
Speaker 14: Yes, for apps, I'm certain that they will appeal and

591
00:30:45,720 --> 00:30:48,000
Speaker 14: that will likely be one of the grounds. Another ground

592
00:30:48,000 --> 00:30:51,200
Speaker 14: will possibly be the fact that the court limited his

593
00:30:51,560 --> 00:30:55,400
Speaker 14: defense that he relied on the advice of lawyers as

594
00:30:55,440 --> 00:30:56,720
Speaker 14: evidence in his case.

595
00:30:57,400 --> 00:31:00,600
Speaker 15: I understand that the defense was.

596
00:31:02,040 --> 00:31:08,360
Speaker 14: Objected to specifiously by the government during the defensive cross

597
00:31:08,440 --> 00:31:12,080
Speaker 14: examination of the cooperating witnesses, and that those objections were

598
00:31:12,080 --> 00:31:13,080
Speaker 14: sustained by the government.

599
00:31:13,160 --> 00:31:15,080
Speaker 15: That might be another grounds for appeal as well.

600
00:31:15,640 --> 00:31:19,200
Speaker 2: And what about those that gave evidence, those that in

601
00:31:19,200 --> 00:31:22,840
Speaker 2: many ways predd guilty themselves. How do we anticipate that

602
00:31:22,880 --> 00:31:27,240
Speaker 2: they too will will face punishment, potentially prison time.

603
00:31:28,320 --> 00:31:30,520
Speaker 15: They will this again will be in the court's discretion.

604
00:31:30,680 --> 00:31:33,880
Speaker 14: They will be sentenced after mister Bankman Freed is sentenced,

605
00:31:34,040 --> 00:31:35,480
Speaker 14: and the court will take into.

606
00:31:35,280 --> 00:31:37,480
Speaker 15: Consideration the cooperation in this case.

607
00:31:37,720 --> 00:31:41,040
Speaker 14: The court will also take into consideration the fact that

608
00:31:41,080 --> 00:31:43,560
Speaker 14: they were all leaders in this organization as well.

609
00:31:43,640 --> 00:31:46,000
Speaker 15: One was a head of engineering, one was a co founder,

610
00:31:46,080 --> 00:31:48,320
Speaker 15: one was the CEO at FTX.

611
00:31:48,720 --> 00:31:51,960
Speaker 14: The court will also take into consideration the value of

612
00:31:52,000 --> 00:31:56,040
Speaker 14: their testimony. You know, it's very difficult oftentimes to prove

613
00:31:56,600 --> 00:32:00,000
Speaker 14: someone's intent. There was obviously a lot of creating evidence

614
00:32:00,280 --> 00:32:04,040
Speaker 14: in contemporaneous text messages and documents, but certainly having the

615
00:32:04,040 --> 00:32:06,640
Speaker 14: people that were in the room talking about what mister

616
00:32:06,680 --> 00:32:10,200
Speaker 14: Bankmanfreed was saying, is very valuable. The CORP will also

617
00:32:10,200 --> 00:32:13,320
Speaker 14: take into consideration that they cooperated.

618
00:32:12,840 --> 00:32:15,320
Speaker 15: Essentially after the fact. No one took a risk in

619
00:32:15,440 --> 00:32:17,920
Speaker 15: war or wire while this was happening.

620
00:32:18,000 --> 00:32:19,520
Speaker 14: So these are all things that CORP will take into

621
00:32:19,520 --> 00:32:22,760
Speaker 14: consideration in sentencing the cooperating witnesses.

622
00:32:23,240 --> 00:32:25,680
Speaker 2: Christine Adams, really great to get your expertise. We thank

623
00:32:25,720 --> 00:32:29,040
Speaker 2: you partner on Adams, Dirk and Cammernstein decades in that

624
00:32:29,160 --> 00:32:32,960
Speaker 2: expertise as a prosecutor. Meanwhile, let's continue the conversation what

625
00:32:32,960 --> 00:32:33,920
Speaker 2: the ramifications are for.

626
00:32:33,840 --> 00:32:35,360
Speaker 5: The rest of the industry, the crypto industry.

627
00:32:35,440 --> 00:32:38,120
Speaker 2: Nick Carter, founding partner at Castleleilen and Adventures, pleased to say,

628
00:32:38,200 --> 00:32:40,920
Speaker 2: is with us VC firm focused on public blockchains?

629
00:32:40,920 --> 00:32:44,160
Speaker 5: And Nick, I mean, is this good news?

630
00:32:44,320 --> 00:32:46,520
Speaker 2: Is this like a sigh of relief for the industry

631
00:32:46,560 --> 00:32:48,880
Speaker 2: that this has sort of been done and dusted, or

632
00:32:49,040 --> 00:32:52,680
Speaker 2: does it still have a spillover effect that well, crime

633
00:32:52,800 --> 00:32:54,760
Speaker 2: could have been committed within this industry group.

634
00:32:55,920 --> 00:32:59,200
Speaker 11: No, it's a moment of relief. And I saw a

635
00:32:59,240 --> 00:33:02,880
Speaker 11: lot of self clebration jubilation on crypto Twitter last night.

636
00:33:04,600 --> 00:33:08,400
Speaker 11: Practically everyone in the industry was harmed by SBF by FTX,

637
00:33:08,800 --> 00:33:11,640
Speaker 11: no one escaped unscathed, And of course there's a secondary

638
00:33:11,640 --> 00:33:16,160
Speaker 11: effect where the collapse of FTX gave regulators air cover

639
00:33:16,480 --> 00:33:19,520
Speaker 11: to go after the industry really harshly, which we've seen

640
00:33:19,520 --> 00:33:22,640
Speaker 11: in the last year. So I think virtually everybody is

641
00:33:22,800 --> 00:33:26,480
Speaker 11: pleased at the guilty verdict here and grateful that this

642
00:33:26,720 --> 00:33:29,040
Speaker 11: is over and we can put this sortid episode behind us.

643
00:33:31,200 --> 00:33:34,480
Speaker 3: Nick, Good morning from San Francisco. Good afternoon where you are. Look,

644
00:33:34,520 --> 00:33:39,000
Speaker 3: we are careful to draw a causal link right over

645
00:33:39,040 --> 00:33:42,520
Speaker 3: the trading of crypto markets this week and the trial,

646
00:33:43,320 --> 00:33:45,360
Speaker 3: but that's what we're writing about in Bloomberg this morning,

647
00:33:45,400 --> 00:33:48,880
Speaker 3: the headline red hot crypto rebound calls as bankman Freed

648
00:33:49,000 --> 00:33:51,719
Speaker 3: is found guilty. Did you see that, you know, the

649
00:33:51,760 --> 00:33:53,960
Speaker 3: tension of the trial play out in the markets that

650
00:33:54,000 --> 00:33:54,800
Speaker 3: you're focused on.

651
00:33:56,320 --> 00:33:59,640
Speaker 11: I don't necessarily see a strong connection between the outcome

652
00:33:59,640 --> 00:34:04,200
Speaker 11: of the t and price action. I mean, ultimately, virtually

653
00:34:04,240 --> 00:34:06,960
Speaker 11: everyone thought this would be the outcome. I think it

654
00:34:07,040 --> 00:34:11,360
Speaker 11: was very clear over the prior few months that Sam

655
00:34:11,360 --> 00:34:14,680
Speaker 11: didn't have much of a defense, and frankly, it was

656
00:34:14,840 --> 00:34:17,960
Speaker 11: very obvious if you'd followed any of the books written

657
00:34:17,960 --> 00:34:21,560
Speaker 11: about FTX that he didn't have much of a case here.

658
00:34:21,719 --> 00:34:24,760
Speaker 11: I mean, his defense that he'd mounted in the initial

659
00:34:24,800 --> 00:34:29,479
Speaker 11: weeks after the insolvency after the bankruptcy was pretty weak.

660
00:34:29,600 --> 00:34:33,560
Speaker 11: I mean, they siphoned the funds, and the margin trading

661
00:34:33,560 --> 00:34:37,200
Speaker 11: excuse didn't really make any sense. So I can tell

662
00:34:37,360 --> 00:34:40,000
Speaker 11: it seems like everyone kind of expected this outcome. I

663
00:34:40,040 --> 00:34:42,799
Speaker 11: thought some people thought there might have been a hung

664
00:34:42,880 --> 00:34:45,120
Speaker 11: jury or small likelihood that he wheaseled his way out

665
00:34:45,120 --> 00:34:47,600
Speaker 11: of it, but ultimately it was pretty forecastable.

666
00:34:48,080 --> 00:34:51,360
Speaker 2: Now you mentioned how basically no one was left unscathed

667
00:34:51,400 --> 00:34:54,200
Speaker 2: in the industry, and I bring up a post coming

668
00:34:54,200 --> 00:34:55,040
Speaker 2: from Alfred.

669
00:34:54,760 --> 00:34:57,640
Speaker 5: Lynn, of course, a sequoia, and he had said.

670
00:34:57,480 --> 00:35:01,640
Speaker 2: I think after the results that today's swift and unanimous

671
00:35:01,680 --> 00:35:04,680
Speaker 2: verdict confirms what we already knew that SBF misled and

672
00:35:04,680 --> 00:35:07,680
Speaker 2: deceived so many, from customers and employees to business partners, investors,

673
00:35:07,680 --> 00:35:10,480
Speaker 2: including myself, a sequoia. In fact, he said, basically, they

674
00:35:10,480 --> 00:35:13,920
Speaker 2: did their own eighteen month working relationship, they evaluated that,

675
00:35:14,239 --> 00:35:17,799
Speaker 2: and they concluded them been deliberately misled and lied to.

676
00:35:18,040 --> 00:35:19,680
Speaker 5: What are the learnings from this?

677
00:35:19,880 --> 00:35:22,760
Speaker 2: The positive's got to be how things change due diligence,

678
00:35:22,800 --> 00:35:25,120
Speaker 2: of course, being one of them. But ultimately how people

679
00:35:25,160 --> 00:35:29,040
Speaker 2: investigate founders and indeed what's being built in the ecosystem.

680
00:35:29,120 --> 00:35:34,080
Speaker 11: Have things changed, Yeah, I mean I don't know precisely

681
00:35:34,200 --> 00:35:36,840
Speaker 11: what Sequoia's diligence processes, but it is the job of

682
00:35:36,840 --> 00:35:40,360
Speaker 11: a venture capitalist to ascertain whether you are being lied to.

683
00:35:40,920 --> 00:35:43,719
Speaker 11: I mean, we passed on FTX. We felt that the

684
00:35:43,800 --> 00:35:46,680
Speaker 11: risks the juice wasn't worth the squeeze there. It was

685
00:35:46,719 --> 00:35:50,080
Speaker 11: an unregistered offshore exchange. We passed on it twice. Many

686
00:35:50,080 --> 00:35:53,480
Speaker 11: of us were skeptical of SPF throughout his whole history

687
00:35:53,480 --> 00:35:56,319
Speaker 11: in the crypto space. I'm not saying we knew there

688
00:35:56,400 --> 00:35:59,040
Speaker 11: was a fraud going on, but the signs were certainly

689
00:35:59,080 --> 00:36:02,480
Speaker 11: there us. And the take from it is, you can't

690
00:36:02,640 --> 00:36:06,319
Speaker 11: be taken in by these wonder cans that become the

691
00:36:06,360 --> 00:36:10,359
Speaker 11: main character in crypto, and don't be taken in by

692
00:36:10,560 --> 00:36:14,440
Speaker 11: outrageous growth. And you know, things like boards and governance

693
00:36:14,520 --> 00:36:18,319
Speaker 11: really matter, alignment really matters. So there certainly was a

694
00:36:18,360 --> 00:36:22,200
Speaker 11: way as a venture capitalist to decide that the opportunity

695
00:36:22,320 --> 00:36:22,960
Speaker 11: wasn't worth it.

696
00:36:24,719 --> 00:36:27,560
Speaker 3: Nick Carter, founding partner of Cast Island Ventures, giving his

697
00:36:27,640 --> 00:36:31,239
Speaker 3: perspective on his interactions with FTX and the outcome of

698
00:36:31,280 --> 00:36:33,600
Speaker 3: this trial. Thank you very much for your time here

699
00:36:33,600 --> 00:36:37,160
Speaker 3: on Bloomberg Technology. Now, It's not the only crypto situation

700
00:36:37,239 --> 00:36:41,040
Speaker 3: that's under Washington's scrutiny. Yesterday, the FTC released a less

701
00:36:41,120 --> 00:36:45,240
Speaker 3: redacted version of its anti trust complaint against Amazon, alleging

702
00:36:45,280 --> 00:36:47,720
Speaker 3: the big tech giant doubled the number of junk ads

703
00:36:47,960 --> 00:36:52,600
Speaker 3: to boost profits and deleted internal communications to thought a

704
00:36:52,680 --> 00:36:57,120
Speaker 3: federal anti trust pro. FTC Share chair Lena Khan spoke

705
00:36:57,160 --> 00:37:00,000
Speaker 3: to Bloomberg's Emily Chang at a tech and anti trust

706
00:37:00,040 --> 00:37:01,120
Speaker 3: event in San Francisco.

707
00:37:01,840 --> 00:37:02,400
Speaker 4: Have a listen.

708
00:37:04,600 --> 00:37:07,319
Speaker 16: I mean, what's really interesting is how be it in

709
00:37:07,360 --> 00:37:09,880
Speaker 16: this case or a whole bunch of other cases relating

710
00:37:09,880 --> 00:37:13,719
Speaker 16: to platforms. We see like a monopoly playbook, and so

711
00:37:13,800 --> 00:37:17,040
Speaker 16: in the early years, the firms are chasing gross and share,

712
00:37:17,160 --> 00:37:20,120
Speaker 16: and so they'll actually compete to make their products good

713
00:37:20,160 --> 00:37:23,520
Speaker 16: for people. But we've seen how in digital markets, once

714
00:37:23,640 --> 00:37:27,120
Speaker 16: the market tips and these firms start enjoying monopoly power

715
00:37:27,160 --> 00:37:30,239
Speaker 16: and able to start protecting that power, we see that

716
00:37:30,320 --> 00:37:33,880
Speaker 16: they start becoming too big to care in a basic

717
00:37:33,920 --> 00:37:36,080
Speaker 16: way where they can kind of make their product worse,

718
00:37:36,160 --> 00:37:39,279
Speaker 16: they can make it more expensive. Corey doctor Rowe has

719
00:37:39,320 --> 00:37:41,840
Speaker 16: written about this really effectively, about the kind of life

720
00:37:41,840 --> 00:37:44,399
Speaker 16: cycle that we see where at the kind of end

721
00:37:44,440 --> 00:37:47,719
Speaker 16: stage of the monopoly cycle, these firms are just in

722
00:37:47,840 --> 00:37:51,360
Speaker 16: extraction mode where they're really not having to compete or

723
00:37:51,400 --> 00:37:54,280
Speaker 16: make their products better. And sometimes it can be hard

724
00:37:54,280 --> 00:37:57,080
Speaker 16: to kind of imagine what the counterfactual would be, right, like,

725
00:37:57,160 --> 00:38:00,440
Speaker 16: what would have happened if we'd had more competition. But

726
00:38:00,480 --> 00:38:02,680
Speaker 16: what's so interesting that we were able to find through

727
00:38:02,680 --> 00:38:05,200
Speaker 16: our investigation was that, you know, you don't have to

728
00:38:06,160 --> 00:38:09,120
Speaker 16: They weren't being subtle about it, right. These were tactics

729
00:38:09,120 --> 00:38:12,719
Speaker 16: that very overtly had the effect of overcharging people by

730
00:38:12,920 --> 00:38:17,279
Speaker 16: upwards of a billion dollars, actively degrading their services in

731
00:38:17,320 --> 00:38:20,600
Speaker 16: ways that they recognized was making the product worse. And

732
00:38:20,719 --> 00:38:24,680
Speaker 16: at various points, you know, there were folks at Amazon saying, hey, like,

733
00:38:24,760 --> 00:38:28,440
Speaker 16: we think these practices are actually bad for people, let's

734
00:38:28,480 --> 00:38:31,160
Speaker 16: not do it. And at each juncture they were overturned

735
00:38:31,160 --> 00:38:33,839
Speaker 16: by the executive. So it's you know, all laid out

736
00:38:33,840 --> 00:38:35,600
Speaker 16: in our lawsuit, and you know, we think we have

737
00:38:35,600 --> 00:38:36,280
Speaker 16: a strong case.

738
00:38:36,360 --> 00:38:38,880
Speaker 8: So in your view, Amazon is a monopoly.

739
00:38:39,520 --> 00:38:43,600
Speaker 5: Yes, that's what our lawsuit a legislate FTC chat Lena Kam.

740
00:38:44,000 --> 00:38:47,680
Speaker 2: Meanwhile, look, the sea of TikTok will visit Brussels next

741
00:38:47,719 --> 00:38:51,080
Speaker 2: week to discuss data protection and disinformation with representatives from

742
00:38:51,080 --> 00:38:53,760
Speaker 2: the European Commission, and the meeting will be the first

743
00:38:53,840 --> 00:38:56,640
Speaker 2: since the EU and a number of countries there fans

744
00:38:56,719 --> 00:38:59,640
Speaker 2: government officials from using TikTok on their work.

745
00:38:59,440 --> 00:39:00,200
Speaker 5: Phones and.

746
00:39:01,760 --> 00:39:04,240
Speaker 3: All right, coming up on the show, it's the race

747
00:39:04,360 --> 00:39:07,439
Speaker 3: for memory in the LLM space. We're going to break

748
00:39:07,440 --> 00:39:11,400
Speaker 3: all things memory chip down with Urrogit Raye Choldry of

749
00:39:11,480 --> 00:39:14,520
Speaker 3: Georgia Tech. This is going to be a deep, nerdy,

750
00:39:14,640 --> 00:39:15,960
Speaker 3: but important conversation.

751
00:39:16,280 --> 00:39:17,480
Speaker 4: This has blimbo technology.

752
00:39:31,360 --> 00:39:33,759
Speaker 3: So it's been a big week for the technology that's

753
00:39:33,880 --> 00:39:37,840
Speaker 3: powering AI. AMD Earning showed significant demand for its MI

754
00:39:38,040 --> 00:39:40,640
Speaker 3: three hundred AI accelerator, which is set to take on

755
00:39:41,000 --> 00:39:44,359
Speaker 3: in Video's h one hundred. We also heard startups who

756
00:39:44,400 --> 00:39:47,240
Speaker 3: need the chips to build large language models, raising money

757
00:39:47,320 --> 00:39:50,400
Speaker 3: or in some cases failing on a near daily basis

758
00:39:50,640 --> 00:39:54,319
Speaker 3: a technical challenge for all of those memory. As AI

759
00:39:54,400 --> 00:39:57,960
Speaker 3: workloads increase, there's an intense demand and need for high

760
00:39:58,000 --> 00:40:02,080
Speaker 3: capacity memory Chips presenting a technical challenge known as the

761
00:40:02,160 --> 00:40:06,200
Speaker 3: memory war, joining us to discuss Professor Arrojet Ray Choudry

762
00:40:06,239 --> 00:40:09,520
Speaker 3: at the score of Electrical and Computer Engineering, Georgia Institute

763
00:40:09,600 --> 00:40:12,040
Speaker 3: of Tech and an expert in all things memory ships.

764
00:40:12,040 --> 00:40:14,680
Speaker 4: So let's start with the memory war, Professor, what is it?

765
00:40:16,560 --> 00:40:19,640
Speaker 13: So if you look at the performance of a processor

766
00:40:19,840 --> 00:40:22,960
Speaker 13: and that of a memory, So the processor performances increase

767
00:40:23,080 --> 00:40:26,040
Speaker 13: or keeps on increasing every year at much faster than

768
00:40:26,040 --> 00:40:29,000
Speaker 13: the performance of a memory increases. So that creates a

769
00:40:29,040 --> 00:40:30,719
Speaker 13: sort of a wall that we call the memory wall,

770
00:40:30,719 --> 00:40:33,040
Speaker 13: which is the gap between the processor performance and the

771
00:40:33,080 --> 00:40:36,120
Speaker 13: memory performance. When a top of the memory performance, it's

772
00:40:36,120 --> 00:40:37,920
Speaker 13: a couple of things. One is the capacity that you

773
00:40:38,040 --> 00:40:40,560
Speaker 13: mentioned of the total memory that you need to perform

774
00:40:40,560 --> 00:40:43,400
Speaker 13: that work, as well as the as the rate the

775
00:40:43,440 --> 00:40:45,760
Speaker 13: bandwide that which you can read and write from the memory.

776
00:40:46,200 --> 00:40:49,400
Speaker 13: So at the moment, what's happening with these large eye models,

777
00:40:49,400 --> 00:40:52,680
Speaker 13: particularly these larger language models or elelems, is that the

778
00:40:52,680 --> 00:40:55,400
Speaker 13: amount of memory that you need in order to store

779
00:40:55,440 --> 00:40:58,560
Speaker 13: all the models, the activations, and all the intermediate data,

780
00:40:58,760 --> 00:41:00,360
Speaker 13: as well as the rate at which you need to

781
00:41:00,400 --> 00:41:03,840
Speaker 13: access all the data are both becoming a huge bottleneck

782
00:41:03,880 --> 00:41:07,399
Speaker 13: in the entire workload or the computing spectrum. So that's

783
00:41:07,480 --> 00:41:10,560
Speaker 13: kind of the memory world, the difference in logic performance

784
00:41:10,640 --> 00:41:12,840
Speaker 13: and the memory capacity and bandwidth that you need in

785
00:41:12,920 --> 00:41:14,680
Speaker 13: order to keep on feeding the logic.

786
00:41:15,800 --> 00:41:17,520
Speaker 4: Er j this is your error expertsise.

787
00:41:17,600 --> 00:41:20,400
Speaker 3: This week, a MD talked up them I three hundred

788
00:41:20,600 --> 00:41:25,440
Speaker 3: x is having sort of superior high bandwidth memory, but

789
00:41:26,040 --> 00:41:29,040
Speaker 3: the g H two hundred, the Gracehopper is coming from Nvidia.

790
00:41:29,080 --> 00:41:31,279
Speaker 3: What is your assessment of those two GPUs.

791
00:41:33,200 --> 00:41:35,400
Speaker 13: I personally think they would be very comparable. So if

792
00:41:35,400 --> 00:41:37,319
Speaker 13: you look at age one hundreds now compared to the

793
00:41:37,360 --> 00:41:40,439
Speaker 13: AMD offering that we have. Of course, the HPM three

794
00:41:40,480 --> 00:41:43,360
Speaker 13: that AMD has has more capacity, has more bandwid But

795
00:41:43,440 --> 00:41:45,000
Speaker 13: at the same time, if you look at the announcement

796
00:41:45,040 --> 00:41:48,279
Speaker 13: from Nvidia, which happened a few months back, the Gracehoppers,

797
00:41:48,320 --> 00:41:50,040
Speaker 13: the super chip that's going to come out, which is

798
00:41:50,040 --> 00:41:53,040
Speaker 13: a CPUGP pair that's kind of that will have the

799
00:41:53,040 --> 00:41:55,719
Speaker 13: same kind of HBM three with you with as much

800
00:41:55,760 --> 00:41:58,640
Speaker 13: memory capacity and higher bandwidth. So I think it's kind

801
00:41:58,680 --> 00:42:00,840
Speaker 13: of a race between the multiple companies at the moment,

802
00:42:00,920 --> 00:42:04,720
Speaker 13: which are all kind of gearing towards more bandwidth, more memory,

803
00:42:04,760 --> 00:42:07,399
Speaker 13: more capacity, denser memory. So I think we are in

804
00:42:07,480 --> 00:42:08,440
Speaker 13: some exciting.

805
00:42:08,080 --> 00:42:11,440
Speaker 4: Times, Professor, you've argued in your research.

806
00:42:11,480 --> 00:42:16,480
Speaker 3: So what we need is denser, more energy efficient, higher

807
00:42:16,520 --> 00:42:17,680
Speaker 3: capacity memory.

808
00:42:18,120 --> 00:42:23,080
Speaker 4: What's the solution? How do we find that it's there?

809
00:42:23,320 --> 00:42:25,400
Speaker 13: So the solution can be at multiple layers of the stack.

810
00:42:25,520 --> 00:42:27,480
Speaker 13: So there's a lot of war going on in new technology,

811
00:42:27,480 --> 00:42:29,839
Speaker 13: which is essentially going beyond. Let's a charge to look

812
00:42:29,840 --> 00:42:32,839
Speaker 13: at other kinds of material properties that can be used

813
00:42:32,840 --> 00:42:35,440
Speaker 13: as memory. The next is, of course circuits. How do

814
00:42:35,480 --> 00:42:38,000
Speaker 13: you addage those bit cells or just memory elements so

815
00:42:38,040 --> 00:42:40,600
Speaker 13: that you can read, write, and access them with the

816
00:42:40,600 --> 00:42:43,759
Speaker 13: lowest amount of energy the highest performance. Then, of course

817
00:42:43,800 --> 00:42:45,840
Speaker 13: the architecture like how do you put the whole thing together?

818
00:42:45,920 --> 00:42:49,880
Speaker 13: And that also includes today more advanced packaging solutions. The

819
00:42:49,920 --> 00:42:52,520
Speaker 13: idea would be to keep on bringing the memory closer

820
00:42:52,560 --> 00:42:54,760
Speaker 13: and closer to the GPU or the logic as possible.

821
00:42:55,040 --> 00:42:57,759
Speaker 13: So HPM three is an example where you essentially would

822
00:42:57,880 --> 00:42:59,759
Speaker 13: use something like what we call the two and A

823
00:42:59,800 --> 00:43:03,040
Speaker 13: have integration technique to bring the logic the GPU or

824
00:43:03,040 --> 00:43:05,799
Speaker 13: the CPU close to the memory. Going beyond, you know,

825
00:43:06,160 --> 00:43:08,560
Speaker 13: people are looking at researching three D solutions where you

826
00:43:08,600 --> 00:43:11,040
Speaker 13: stack the memory on top of the logic or even

827
00:43:11,080 --> 00:43:12,880
Speaker 13: bring a little bit of the logic into the memory

828
00:43:12,920 --> 00:43:14,600
Speaker 13: so that you can do what is called in memory

829
00:43:14,640 --> 00:43:18,960
Speaker 13: compute or processing in memory. So there are multiple research

830
00:43:18,960 --> 00:43:21,160
Speaker 13: avenues that are being explored, both in academy and in

831
00:43:21,200 --> 00:43:24,040
Speaker 13: the industry, and one or multiple of these will become

832
00:43:24,080 --> 00:43:27,240
Speaker 13: the solution of the future. But I think the mantra

833
00:43:27,400 --> 00:43:31,080
Speaker 13: is have more memory, denser memory, more energy efficient memory,

834
00:43:31,239 --> 00:43:33,480
Speaker 13: higher capacity, and at the same time you need this

835
00:43:33,560 --> 00:43:35,400
Speaker 13: memory to be as close to logic as possible.

836
00:43:36,440 --> 00:43:39,080
Speaker 3: Professor, We've been showing images of d d R five

837
00:43:39,080 --> 00:43:43,520
Speaker 3: from Samsung, HMB three E from Micron. You take an

838
00:43:43,520 --> 00:43:46,439
Speaker 3: academic perspective, but there's work in the private sector around

839
00:43:46,480 --> 00:43:47,560
Speaker 3: the world on this.

840
00:43:47,800 --> 00:43:50,560
Speaker 4: What excites you most? Who is doing the cutting edge

841
00:43:50,600 --> 00:43:51,120
Speaker 4: of memory?

842
00:43:52,320 --> 00:43:56,279
Speaker 13: I think different companies are doing different things, and you know,

843
00:43:56,480 --> 00:44:00,400
Speaker 13: innovations are happening all the layers of the stacked. Micron

844
00:44:00,440 --> 00:44:02,680
Speaker 13: has some very interesting solutions. You know, we have one

845
00:44:02,719 --> 00:44:05,919
Speaker 13: of the large conferences in the device technology world, which

846
00:44:05,960 --> 00:44:09,239
Speaker 13: is called the International Electron Device Meeting, happens in San

847
00:44:09,239 --> 00:44:12,480
Speaker 13: Francisco every December. So there are some there are some

848
00:44:12,520 --> 00:44:14,840
Speaker 13: announcements that Micron is going to make on some you know,

849
00:44:14,880 --> 00:44:19,200
Speaker 13: some very interesting exciting memory technologies which are post kind

850
00:44:19,200 --> 00:44:22,759
Speaker 13: of based on three D integration. Looking at Eskhaynix, looking

851
00:44:22,800 --> 00:44:26,520
Speaker 13: at Samsung amazing solutions for flash as well as for

852
00:44:26,640 --> 00:44:30,560
Speaker 13: d M, so at multiple layers of abstraction. You know,

853
00:44:30,560 --> 00:44:34,240
Speaker 13: from the technology, from the circuits and architecture, we see

854
00:44:34,280 --> 00:44:36,319
Speaker 13: a lot of exciting things happening in the memory. And

855
00:44:36,600 --> 00:44:38,360
Speaker 13: as I mentioned, you know, it's not just the memory

856
00:44:38,360 --> 00:44:42,360
Speaker 13: and isolation, but the packaging, the integration, the coupling with logic.

857
00:44:42,440 --> 00:44:44,680
Speaker 4: That's that's you know, that's kind of making the entire

858
00:44:44,680 --> 00:44:46,920
Speaker 4: space more more vibrant.

859
00:44:47,239 --> 00:44:50,360
Speaker 3: Professor rach Awdry of Georgia Institute Tech, thank you so

860
00:44:50,440 --> 00:44:51,120
Speaker 3: much for your time.

861
00:44:57,800 --> 00:44:59,880
Speaker 2: Shares of Apple still lower by about eight tens of

862
00:45:00,120 --> 00:45:02,560
Speaker 2: send after of course earnings last night. Let's get to

863
00:45:02,600 --> 00:45:05,680
Speaker 2: Ana rag Ran on Blueberg Intelligence to really well articulate

864
00:45:05,719 --> 00:45:08,080
Speaker 2: that this is a China problem. It feels like, first

865
00:45:08,080 --> 00:45:09,160
Speaker 2: and foremost.

866
00:45:09,800 --> 00:45:13,520
Speaker 17: Yeah, you see bag MAC sales, iPad sales not that good.

867
00:45:13,840 --> 00:45:16,279
Speaker 17: So the China number really was the biggest surprise on

868
00:45:16,320 --> 00:45:19,560
Speaker 17: the negative side, and you know that remains the concern.

869
00:45:19,600 --> 00:45:21,360
Speaker 17: And I think that's going to be the most important

870
00:45:21,400 --> 00:45:24,200
Speaker 17: factor when we go into the next earning season also

871
00:45:24,440 --> 00:45:26,640
Speaker 17: because that, in our view, is going to dictate how

872
00:45:26,680 --> 00:45:28,960
Speaker 17: Apple's next twenty twenty four shapes up.

873
00:45:30,360 --> 00:45:32,759
Speaker 2: Sure, sweet to the point, always looking forward to the

874
00:45:32,760 --> 00:45:35,560
Speaker 2: next set of earnings, even while we still seem to be.

875
00:45:35,440 --> 00:45:36,520
Speaker 5: Recovering from this set.

876
00:45:36,560 --> 00:45:39,000
Speaker 2: Anna rag Rana, we thank you so much of BLUEBG

877
00:45:39,040 --> 00:45:42,360
Speaker 2: Intelligence really with well the push forward there on Apple,

878
00:45:42,400 --> 00:45:44,000
Speaker 2: and of course it does it for this edition of

879
00:45:44,000 --> 00:45:44,840
Speaker 2: Bluebog Technology.

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Speaker 6: Yeah.

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Speaker 4: Yeah, it's been an incredible week.

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Speaker 3: We've covered European markets, We've had earnings, we've had the

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Speaker 3: trial of Sam Bankman freed, and don't forget you can

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Speaker 3: recap every episode on our podcast wherever you get your podcasts.

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Speaker 3: We have all of them on the Bloomberg platforms, but

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Speaker 3: also Apple Spotify. As you can see that over Caroline's

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Speaker 3: shoulder in New York City and over here in San Francisco,

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Speaker 3: Happy Friday. This is Bloomberg Technology.