WEBVTT - Sam Bankman-Fried Guilty and Apple Takes a Hit 0:00:00.720 --> 0:00:06.000 From Marhart where Innovation, Money and Power Collie in Silicon Valley, NBN. 0:00:06.320 --> 0:00:10.360 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:24.320 --> 0:00:27.320 I'm Caroline heindet Bloomberg's World headquarters in New York and. 0:00:27.280 --> 0:00:30.760 I met Lovelow in San Francisco. This his Bloomberg Technology 0:00:30.920 --> 0:00:31.440 coming up. 0:00:31.640 --> 0:00:34.960 The FTX founder Sam Macmnfried is found guilty in his 0:00:35.040 --> 0:00:38.720 full trial, now facing decades in prison. We'll break down 0:00:38.720 --> 0:00:41.120 the decision to discuss what it means for the broader 0:00:41.159 --> 0:00:42.080 crypto industry. 0:00:43.120 --> 0:00:46.080 Plus Apple shares taking a hit after the world's most 0:00:46.159 --> 0:00:49.559 valuable company warns of a sluggish holiday quarter and some 0:00:49.680 --> 0:00:50.840 weakness in China. 0:00:50.920 --> 0:00:52.440 We have full coverage ahead. 0:00:52.440 --> 0:00:54.520 And we'll have an exclusive interview with the CEO of 0:00:54.640 --> 0:00:57.760 Zieman's as the company invests half a billion dollars in 0:00:57.880 --> 0:00:59.320 new US manufacturing. 0:01:00.440 --> 0:01:01.560 Let's check out these markets. 0:01:01.600 --> 0:01:05.360 It is a macro picture one of a calling jobs market, 0:01:05.400 --> 0:01:08.679 which means maybe we're in Goldilock scenario. People buy on 0:01:08.760 --> 0:01:11.199 the fact that maybe the Federal Reserve can indeed rest 0:01:11.240 --> 0:01:13.040 on their laurels for a little bit. Now we're seeing 0:01:13.040 --> 0:01:15.360 the anaunsdak currently at one point one percent. I mean 0:01:15.480 --> 0:01:18.759 having an absolute phenomenal week, best week of the entire year. 0:01:18.880 --> 0:01:20.280 So two is the S and P five hundred. 0:01:20.400 --> 0:01:22.399 In fact, the thirty year yield dips down some some 0:01:22.520 --> 0:01:23.440 basis points on the day. 0:01:23.680 --> 0:01:25.360 Last three days we've seen the thirty year. 0:01:25.240 --> 0:01:27.840 Yield plunge the most since back in the pandemic, so 0:01:28.000 --> 0:01:30.160 notable moves in the bond market and the stock market. 0:01:30.400 --> 0:01:31.039 We're looking at the. 0:01:30.959 --> 0:01:33.720 Dollar index off by almost a four percentage point down 0:01:33.720 --> 0:01:37.319 against every major currency that we currently see because we 0:01:37.319 --> 0:01:39.040 start to anticipate a less hawkish FED. 0:01:39.120 --> 0:01:40.679 Let's look at what means for. 0:01:40.640 --> 0:01:42.280 The world of crypto, which were gonna be digging into 0:01:42.400 --> 0:01:45.000 much more this entire hour head And actually we saw 0:01:45.000 --> 0:01:46.920 a little bit of a pop over the last well 0:01:47.120 --> 0:01:49.280 they are training first and second and November, but in 0:01:49.320 --> 0:01:51.760 general we're range band once again below that thirty five 0:01:51.800 --> 0:01:54.440 thousand dollars level. It's notable that we're actually climbed just 0:01:54.480 --> 0:01:56.360 slightly over the last five days, but. 0:01:56.360 --> 0:01:58.200 Really we do seem to have seen a peek in 0:01:58.240 --> 0:01:59.720 the buying. Maybe we now need. 0:01:59.640 --> 0:02:03.360 To die what the ramifications of Sam Magmin Freed's guilty 0:02:03.440 --> 0:02:05.600 verdict means for broader crypto at large. 0:02:05.720 --> 0:02:06.480 Ed what are you watching. 0:02:07.440 --> 0:02:09.239 Well, the other big story, which is Apple. 0:02:09.320 --> 0:02:11.200 You know, this was the one we were waiting for, 0:02:11.320 --> 0:02:14.200 and largely we got what we expected, the fourth straight 0:02:14.320 --> 0:02:17.120 quarter of overall sales to climb for Apple. We have 0:02:17.120 --> 0:02:19.960 to go back two decades, two thousand and one to 0:02:20.040 --> 0:02:22.440 the last time Apple had a slump like that. In 0:02:22.480 --> 0:02:24.920 the show, We're going to go deep on China in particular, 0:02:25.120 --> 0:02:27.639 they had very clear explanation for what Apple thinks is 0:02:27.639 --> 0:02:32.280 happening in China, but basically they missed estimates, saying iPhone 0:02:32.360 --> 0:02:35.920 was actually strong, a record revenue quarter for iPhone, but 0:02:36.000 --> 0:02:38.360 weakness in iPad and Max. So much to discuss, and 0:02:38.560 --> 0:02:41.320 it's kind of strange because there's so much news. Thursday 0:02:41.400 --> 0:02:44.800 night was wild in the world of technology, right. Apple 0:02:44.919 --> 0:02:46.600 was a big story in the moment, and then it 0:02:46.680 --> 0:02:48.560 quickly became a clipse. But we will bring you that 0:02:48.600 --> 0:02:50.160 analysis throughout the hour. 0:02:50.400 --> 0:02:52.480 We will. Meanwhile, though, let's get back to the discoy 0:02:52.520 --> 0:02:55.560 STUFFTX found the Sam Magman freed. He's been found guilty 0:02:55.760 --> 0:02:58.359 of seven counts of fraud and conspiracy following a month 0:02:58.440 --> 0:03:00.959 long trial that pitted the testimony of the former crypto 0:03:01.080 --> 0:03:04.680 king against those of some of his closest friends joining 0:03:04.760 --> 0:03:07.320 us now someone who is in that courtroom when we 0:03:07.400 --> 0:03:11.360 saw very swiftly this verdict decidedly most uti Yang, Just 0:03:11.680 --> 0:03:12.520 what was it like. 0:03:12.560 --> 0:03:14.720 To be getting that sort of response that quickly. 0:03:16.760 --> 0:03:20.079 It was a complete surprise. Nobody expected the result will 0:03:20.120 --> 0:03:24.480 come out so quickly. The verdict with the deliberation started 0:03:24.800 --> 0:03:28.640 shortly after three pm on Thursday, and some people just 0:03:28.919 --> 0:03:32.040 left the courthouse and went home because usually for cases 0:03:32.080 --> 0:03:36.680 of this skill, jury will take sometimes or even days 0:03:36.720 --> 0:03:42.080 to deliberate it. But it turns out regard the verdict 0:03:42.400 --> 0:03:46.040 shortly before a pm. So the jury really took a 0:03:46.120 --> 0:03:49.960 quick turnaround turnaround on this and we find out that 0:03:50.040 --> 0:03:52.360 Sam was convicted on all counts. 0:03:53.280 --> 0:03:56.960 Very few people ultimately able to be there to witness that. 0:03:57.000 --> 0:03:57.640 Momently. 0:03:57.680 --> 0:03:59.960 Can you just tell us sort of what the realc 0:04:00.040 --> 0:04:05.440 action was of someone said himself of his own lawyers, for. 0:04:05.400 --> 0:04:10.200 Example, Yeah, I will start by saying that earlier in 0:04:10.240 --> 0:04:14.200 the night, there's actually some lighthearted moments. The first jury 0:04:14.240 --> 0:04:16.560 note came out and the judge said there are only 0:04:16.600 --> 0:04:20.480 three words written on it, which is we want cars, 0:04:21.160 --> 0:04:24.640 and that's what the jury was asking for. They wanted 0:04:24.680 --> 0:04:27.680 to get transportation provided for them when they go home 0:04:28.279 --> 0:04:31.000 after finishing the night, and when the judge announced that, 0:04:31.040 --> 0:04:34.920 the entire quruom just burst into laughter. Nobody expected that 0:04:35.279 --> 0:04:37.680 to be the first jury note, and even sent himself 0:04:37.720 --> 0:04:40.320 he was laughing. It was probably the biggest laugh of 0:04:40.440 --> 0:04:44.320 seeing him throughout this trial. But then I would say 0:04:44.320 --> 0:04:47.480 that the mood really darkened later into the night and 0:04:48.160 --> 0:04:50.120 when we find out that there's gonna be a verdict, 0:04:51.160 --> 0:04:52.880 the entire quurum was just quiet. 0:04:52.960 --> 0:04:53.520 You could just. 0:04:53.400 --> 0:04:57.560 Feel the sense of suspense, the sense of nervousness among people. 0:04:58.160 --> 0:05:02.080 And eventually the judge was the one reading out the verdict. 0:05:02.720 --> 0:05:03.640 Sam rose up. 0:05:03.720 --> 0:05:07.080 As he listened to the verdict, he was clapping his 0:05:07.320 --> 0:05:12.400 hands in front of him, standing very uptight, didn't really 0:05:12.400 --> 0:05:16.919 have much facial expression on his face, and as he 0:05:17.040 --> 0:05:20.559 listened to the verdict guilty, guilty for every single count, 0:05:20.880 --> 0:05:24.359 he just kind of had this uh serious look on 0:05:24.480 --> 0:05:29.800 his face. And that meanwhile, his parents were just you 0:05:29.839 --> 0:05:32.719 could tell they were devastated. The dad, Joe Bankman, he 0:05:32.880 --> 0:05:36.760 kind of doubled down and looked down. And after the 0:05:37.279 --> 0:05:42.600 verdict was announced, the parents, at the end of this proceeding, 0:05:42.680 --> 0:05:46.440 they tried to approach sent back free from the back, 0:05:47.080 --> 0:05:49.719 but they really couldn't get to him because there is 0:05:49.839 --> 0:05:54.719 a barricade that kind of separated the courthouse quom between 0:05:54.720 --> 0:05:56.640 the gallery and where the lawyers are. 0:05:57.040 --> 0:05:58.320 And Sam was. 0:05:58.320 --> 0:06:03.000 Immediately escorted out by US Marshals and on his way out, 0:06:03.279 --> 0:06:07.320 he took a brief glance back at his parents, and 0:06:08.000 --> 0:06:11.320 there's a slight nod and acknowledgement at his parents, and 0:06:11.360 --> 0:06:12.880 then he was gone. 0:06:13.320 --> 0:06:17.320 Bloomboth Utu Yang incredible reporting of the events that took 0:06:17.320 --> 0:06:20.800 place in that New York courtroom on Thursday evening, and 0:06:20.880 --> 0:06:23.760 later in the show we will get more reaction from 0:06:23.760 --> 0:06:27.880 the crypto industry for what this symbolizes, much more broadly 0:06:27.920 --> 0:06:30.360 than the events of Thursday. The other top story that 0:06:30.400 --> 0:06:32.440 we have to get back to here on Bloombow Technology 0:06:32.480 --> 0:06:34.640 is Apple's earnings. We're going to bring in Forester Research 0:06:34.920 --> 0:06:37.320 principal analyst juliasc who I'm delighted to say is with 0:06:37.440 --> 0:06:39.880 us here in San Francisco. You heard me at the 0:06:39.880 --> 0:06:41.200 top of the show. We kind of got what we 0:06:41.360 --> 0:06:44.680 thought was coming, four straight quarter of overall sales decline. 0:06:44.920 --> 0:06:47.560 But then you dig down by product and number and 0:06:47.600 --> 0:06:49.039 it's much more complicated. 0:06:49.520 --> 0:06:52.240 We start with China. What was your takeaway there? 0:06:52.720 --> 0:06:56.000 So, I said, I listened to most of the comments 0:06:56.040 --> 0:06:58.400 from Tim Cook, and I understand the elements about the smartphone. 0:06:58.440 --> 0:07:01.200 What I thought was interesting about and interesting about his 0:07:01.279 --> 0:07:04.400 announcements is Apple had growth in some of the largest 0:07:04.400 --> 0:07:07.000 economies in the world, right places they haven't traditionally been 0:07:07.040 --> 0:07:09.479 strong or had a lot of sales. And you heard 0:07:09.520 --> 0:07:12.240 him talk about China with record growth and smartphones. You 0:07:12.280 --> 0:07:14.400 heard him talk about India. You talk and talk about 0:07:14.400 --> 0:07:17.040 Indonesia and three of the largest you know economies, well 0:07:17.080 --> 0:07:19.960 not economies but country you know, popular markets markets in 0:07:20.000 --> 0:07:22.280 the world. And I thought that was encouraging that they're 0:07:22.600 --> 0:07:26.080 looking for growth beyond their existing customer base and outside 0:07:26.120 --> 0:07:28.280 of the Americas, which have to really been their strength. 0:07:28.360 --> 0:07:31.800 Okay, So in Greater China sales fell two percent year 0:07:31.840 --> 0:07:35.160 on year, but Apple said that on a constant currency basis, 0:07:35.160 --> 0:07:37.520 they would have grown. What they said was that in 0:07:37.600 --> 0:07:41.200 Greater China, iPhone had a record quarter and the drag 0:07:41.280 --> 0:07:45.680 in sales was principally in mac an iPad, where in 0:07:45.720 --> 0:07:47.640 that quarter there have been no refresh. 0:07:47.280 --> 0:07:48.520 On the product. 0:07:49.160 --> 0:07:51.480 What's the conclusion we draw, We just take it at 0:07:51.480 --> 0:07:53.760 face value that actually iPhone's doing fine. 0:07:53.560 --> 0:07:56.760 There, So not being a financial analyst, I would have 0:07:56.800 --> 0:07:58.880 to take it at face value. But I think there's 0:07:58.920 --> 0:08:00.880 a couple of things in place. Like one of them 0:08:00.960 --> 0:08:03.400 is is this the upgrade cycles are slower. If we 0:08:03.440 --> 0:08:05.920 think back to when we first had phones or smartphones, 0:08:05.960 --> 0:08:08.600 we were upgrading those every eighteen to twenty four months, 0:08:08.800 --> 0:08:11.160 and that upgrade cycle is probably closer to three to 0:08:11.200 --> 0:08:15.000 four years now. The second thing I take into account 0:08:15.160 --> 0:08:17.800 when we think about, you know, the markets, is this 0:08:17.840 --> 0:08:21.120 isn't their biggest quarter. You know, we're coming into holiday season, 0:08:21.120 --> 0:08:23.160 which is by far the biggest quarter for Apple and 0:08:23.200 --> 0:08:25.960 for every retailer that's there. And when we look at 0:08:26.000 --> 0:08:28.280 our data, we have twenty four percent of US online 0:08:28.320 --> 0:08:31.160 consumers saying they're going to spend more forty percent at 0:08:31.240 --> 0:08:33.520 least the same as last year. And we've got almost 0:08:33.559 --> 0:08:36.079 twenty five percent of ansumers saying they're going to spend 0:08:36.120 --> 0:08:39.280 that money on consumer electronics. So I think also as 0:08:39.280 --> 0:08:41.040 we look forward, there's some optimism at least for this 0:08:41.080 --> 0:08:42.240 holiday season. 0:08:42.880 --> 0:08:45.800 And yet the guidance wasn't one of optimism. 0:08:45.920 --> 0:08:48.200 And to that extent, do you think this is just 0:08:48.200 --> 0:08:50.600 Apple being typically cautious in this respect. 0:08:52.280 --> 0:08:55.120 Yeah, there's probably Apple being typically cautious. I think Apple 0:08:55.160 --> 0:08:57.480 in some ways also they hold their what do they 0:08:57.480 --> 0:08:59.160 call it, They hold their cards close to their chest. 0:08:59.240 --> 0:09:01.160 I mean Apple is play playing a long game here. 0:09:01.559 --> 0:09:04.520 When Tim Cook talked about the ecosystem of hardware, software 0:09:04.559 --> 0:09:07.320 and services, they had a new chipset come out about 0:09:07.360 --> 0:09:08.800 I think it was a week, maybe it was just 0:09:08.800 --> 0:09:12.320 this week, right, Their products get better with each generation 0:09:12.400 --> 0:09:14.719 of chips that come out. You look at more than 0:09:14.760 --> 0:09:20.040 one billion active subscribers and two billion active devices. Those 0:09:20.040 --> 0:09:22.160 folks are spending a lot of money with Apple, and 0:09:22.200 --> 0:09:23.800 those are just the services we pay for, right. But 0:09:23.840 --> 0:09:26.840 it's payments, it's healthcare, it's maps, it's email, it's everything 0:09:26.840 --> 0:09:29.320 we do one hundred or two hundred times a day. 0:09:29.800 --> 0:09:32.199 And I do believe that they're playing a long game here. 0:09:32.520 --> 0:09:35.680 That make it suddenly you know they're chasing acquisition. But 0:09:35.720 --> 0:09:38.000 also the switching costs off of Apple are very high 0:09:38.000 --> 0:09:40.920 these days for anyone who has bought into the Apple ecosystem, 0:09:40.960 --> 0:09:43.560 and I think that's a real place of strength for Apple. 0:09:44.840 --> 0:09:49.520 Ultimately, this becomes there for a global narrative and one 0:09:49.559 --> 0:09:51.680 of which we are will worried about China, will worried 0:09:51.679 --> 0:09:54.520 about the implications long a term. But do you think 0:09:54.640 --> 0:09:58.959 that competition from the android sphere is getting more real, 0:09:59.160 --> 0:10:03.680 more ferocious, more clear, and the nationalism playing into this respect. 0:10:05.360 --> 0:10:07.200 So I think I don't follow in the Chinese market 0:10:07.200 --> 0:10:09.400 as closely, but I think certainly that's an element in 0:10:09.440 --> 0:10:12.240 a market, you know, like China or India. You know, 0:10:12.240 --> 0:10:15.520 when we think about Apple and smartphones, they're certainly chasing 0:10:15.559 --> 0:10:18.400 the top end of the market. It's a very profitable 0:10:18.800 --> 0:10:22.719 device for them. And not every company that's selling smartphones 0:10:23.840 --> 0:10:25.680 is always selling is you know. 0:10:25.679 --> 0:10:26.440 The goals and problem. 0:10:26.559 --> 0:10:28.720 You know, some companies make money in other ways. You know, 0:10:28.720 --> 0:10:31.559 it could be the telecom providers, it's advertising, And there's 0:10:31.600 --> 0:10:33.920 a lot of different business models in China and Indian 0:10:33.960 --> 0:10:36.360 and some of these other countries that are less prevalent 0:10:36.400 --> 0:10:38.840 here in the United States that make the sale of 0:10:38.880 --> 0:10:40.719 the smartphone you know, I would say less important in 0:10:40.800 --> 0:10:43.080 some of those markets in terms of total revenue. 0:10:43.520 --> 0:10:44.480 Judy, it's always. 0:10:44.280 --> 0:10:46.000 Great to get your expertise and thank you for it 0:10:46.040 --> 0:10:49.559 for us, A research principal analyst, Judy Ask. Meanwhile, we're 0:10:49.600 --> 0:10:52.680 going to stick in the Apple verse. Fox Con is 0:10:52.760 --> 0:10:55.160 best known of course I building iPhones, but now it's 0:10:55.160 --> 0:10:58.800 putting big on gifts, what electric vehicles. We spoke exclusively 0:10:58.800 --> 0:11:01.800 with a fox Con chairman, NC young new about his 0:11:01.880 --> 0:11:03.120 belief in an electric future. 0:11:03.120 --> 0:11:03.640 Take a listen. 0:11:06.240 --> 0:11:11.520 After four years, we're becoming more and more excited because 0:11:11.559 --> 0:11:14.560 the more we learned about this new industry, the more 0:11:14.600 --> 0:11:18.080 we believe this is the right industry for FASCA to 0:11:18.200 --> 0:11:23.959 go into because with fastcas experience and its scale, and 0:11:24.040 --> 0:11:29.800 it creates big enough entry barriers for our competitors in 0:11:29.840 --> 0:11:32.600 the ICT industry to go into. 0:11:33.040 --> 0:11:37.440 How big is the opportunity for fox Cone in terms 0:11:37.440 --> 0:11:42.000 of the market size and also for the company's capabilities. 0:11:41.600 --> 0:11:44.719 For the market size, We did a study when we 0:11:45.559 --> 0:11:49.520 started about three or four years ago. At that time, 0:11:49.720 --> 0:11:53.640 the market at twenty twenty five was estimated at six 0:11:53.840 --> 0:11:59.560 hundred billion US dollars big, So this is big enough. 0:11:59.640 --> 0:12:02.280 If we can and get you know, like ten percent 0:12:02.360 --> 0:12:06.679 of it, it will be sixty billion and fast kind 0:12:06.679 --> 0:12:12.560 of running it about two hundred seventy ash you know 0:12:12.679 --> 0:12:16.920 that kind of market, that kind of revenue. So with 0:12:17.320 --> 0:12:23.360 sixty billion, it's about two points some twenty five percent 0:12:23.960 --> 0:12:24.880 around that figure. 0:12:25.840 --> 0:12:28.319 You're building a factory from the ground up in Thailand. 0:12:29.040 --> 0:12:33.600 You bought a factory for this project in Ohio. First 0:12:33.640 --> 0:12:35.440 of all, what did you think when you visited the 0:12:35.600 --> 0:12:37.640 facility in Lordstown, Ohio. 0:12:37.840 --> 0:12:42.160 Well, it's huge facilities, with a lot of histories and 0:12:42.200 --> 0:12:45.840 a lot of capabilities. We think we can do a 0:12:46.000 --> 0:12:51.960 lot by converting that factory to a EV factory. And 0:12:52.000 --> 0:12:56.920 also because the surrounding environment they used to do I 0:12:56.960 --> 0:13:02.120 would say five hundred thousand cars a year at that 0:13:02.240 --> 0:13:08.960 kind of capacities, Definitely, you have to have enough supply 0:13:09.080 --> 0:13:11.960 chain in the area in order to support that kind 0:13:11.960 --> 0:13:17.800 of production. And with the supply chain almost there, with 0:13:17.920 --> 0:13:22.920 the location with the space that is big enough, so 0:13:22.960 --> 0:13:25.840 we think it will be very good now for the 0:13:25.920 --> 0:13:27.520 EV production there. 0:13:28.240 --> 0:13:31.960 Fox CON's chairman and CEO Young Lewin's a pretty incredible 0:13:32.000 --> 0:13:44.199 exclusive coming out of Asia from Loombog's reed Stevenson Semen's 0:13:44.200 --> 0:13:47.800 announcing more than five hundred million US dollars in manufacturing 0:13:47.800 --> 0:13:51.200 investments in the US to support rapidly growing industries like 0:13:51.280 --> 0:13:55.280 data centers, semiconductor, and battery manufacturing. And that includes a 0:13:55.280 --> 0:13:58.280 new one hundred and fifty million manufacturing plant in the 0:13:58.360 --> 0:14:02.840 Dallas Fort Worth area in Texas. Semen's global CEO Roland 0:14:02.840 --> 0:14:06.360 Bush joins us now from Dallas. Big News, Doctor Bush, 0:14:06.559 --> 0:14:09.760 thank you for your time on Bloomberg technology. How much 0:14:09.800 --> 0:14:13.920 of this is being pushed by the IRA and the 0:14:14.000 --> 0:14:17.320 incentives that were on offer to establish a supply chain 0:14:17.360 --> 0:14:18.280 here in this country. 0:14:19.920 --> 0:14:22.520 Well, I mean our five hundred million investment program the 0:14:22.600 --> 0:14:26.360 United States has two reasons. Of course, it's attractive environment 0:14:26.400 --> 0:14:28.280 on the one side, but it's also our market. It's 0:14:28.320 --> 0:14:32.280 our customers which we're asking for our technology. So you 0:14:32.360 --> 0:14:34.760 know that. Earlier the year we announced on a twenty 0:14:34.800 --> 0:14:38.080 million investment in North Carolina and Lexington. This is our 0:14:38.400 --> 0:14:43.120 brand new rolling stock manufacturing plant and this is definitely 0:14:43.160 --> 0:14:45.960 pulled by our customer. I mean, our customers are really 0:14:47.040 --> 0:14:51.000 buying rolling stock trains for locomotives from US. And now 0:14:51.080 --> 0:14:53.920 today we announced on a fifty million investment in Dallas 0:14:54.040 --> 0:14:57.960 for Worth and this is about electric products. We are 0:14:58.040 --> 0:15:04.000 basically supporting the data center industry and large language models 0:15:04.080 --> 0:15:08.200 data centers with electrical products and that's a reason for investing. 0:15:08.320 --> 0:15:10.920 And of course an attractive market environment is an add 0:15:11.000 --> 0:15:11.360 on too. 0:15:12.480 --> 0:15:15.000 Do you have a clear line of sight to the 0:15:15.040 --> 0:15:17.440 funding that is available from the IRI. One of the 0:15:17.440 --> 0:15:20.120 things I've heard from CEOs all over the world is 0:15:20.120 --> 0:15:23.120 that on paper it's fantastic, but getting hold of the 0:15:23.120 --> 0:15:25.840 funds and getting going on the project actually has some 0:15:25.960 --> 0:15:26.880 latency to it. 0:15:27.240 --> 0:15:29.640 Yeah, well, you know, the point is number one is 0:15:29.680 --> 0:15:32.720 the funds. But for me, the most important point is 0:15:32.720 --> 0:15:36.360 really people. When you talk about a manufacturing site, you 0:15:36.440 --> 0:15:39.920 talk really about a fully automated and digitalized manufacturing site. 0:15:40.000 --> 0:15:41.960 So you really have to get the right people on 0:15:42.000 --> 0:15:44.680 the shop floor. We are training and educating people at 0:15:44.720 --> 0:15:47.640 the same time, so will little of people in a 0:15:47.840 --> 0:15:50.880 market which is fully scars of labor is one of 0:15:50.880 --> 0:15:53.440 the biggest advantages. This is what we find here. And 0:15:53.440 --> 0:15:55.760 if you're doubling down basically on our investment, which you 0:15:55.800 --> 0:15:58.600 have already in Grand Prairie. Team did a great job 0:15:58.680 --> 0:16:02.720 in really bring our business within three years on electoral 0:16:02.760 --> 0:16:06.960 products and a strong customer demount comes together. So that 0:16:07.120 --> 0:16:10.200 is a nice fit for investing in the United States 0:16:10.240 --> 0:16:11.720 and particularly here in Texas. 0:16:12.000 --> 0:16:14.640 Well, let's talk about Texas. You join us from Dallas, 0:16:14.680 --> 0:16:17.080 the Dallas Fort Worth area. What was it about that 0:16:17.160 --> 0:16:20.200 location that made it an attractive place? For you to 0:16:20.200 --> 0:16:21.800 set up your supply chain there. 0:16:22.120 --> 0:16:22.400 Yeah. 0:16:22.560 --> 0:16:24.560 I mean, as I said before, it's a very attractive 0:16:24.600 --> 0:16:28.920 environment from the government, what kind of support they provide. 0:16:29.800 --> 0:16:32.960 Number two, it's forty miles away from Grand Prairie, where 0:16:32.960 --> 0:16:36.840 we have already a full fledged manufacturing site for electoral equipment. 0:16:37.160 --> 0:16:39.520 We have the people there, we have the supply base there, 0:16:39.560 --> 0:16:42.520 we have the management, so it's easy to double down 0:16:42.600 --> 0:16:47.640 our investment on already a very great team performance. And 0:16:48.000 --> 0:16:50.160 then we found a nice place here, a very good place. 0:16:50.240 --> 0:16:53.200 It's an existing site which was used for a warehouse 0:16:53.600 --> 0:16:56.000 convert We are going to convert it now for manufacturing. 0:16:56.400 --> 0:16:58.600 So it all comes together. And again this is a 0:16:58.680 --> 0:17:02.720 very business frontier environment that you find here in Texas. 0:17:03.160 --> 0:17:07.720 You talk about Delta Bush, your focus on an end user, 0:17:07.880 --> 0:17:11.240 the client demand coming from the United States. Compare and 0:17:11.280 --> 0:17:13.520 contrast that to Europe at the moment. 0:17:13.840 --> 0:17:14.800 How much are. 0:17:14.640 --> 0:17:17.040 You seeing clients having to dial back some of their 0:17:17.080 --> 0:17:19.360 demand because of the macroeconomic environment. 0:17:19.920 --> 0:17:22.560 What we do see is, let me start with the 0:17:22.720 --> 0:17:26.240 energy intensive industries. They are really looking into the United 0:17:26.280 --> 0:17:30.080 States because you have very low energy crisis, and that's 0:17:30.119 --> 0:17:34.720 a big advantage on top cons your Inflation Reduction Act, 0:17:34.720 --> 0:17:37.520 which is really supporting investment in the United States. So 0:17:37.600 --> 0:17:40.880 this is where our customers. I mean, it's a chemic industry, 0:17:41.920 --> 0:17:49.360 batrem factual data centers, but any kind of energy intensive 0:17:49.359 --> 0:17:51.760 industry is moving to the United States. They're looking into 0:17:51.800 --> 0:17:53.720 that market. And it's a market too, it's a big 0:17:53.760 --> 0:17:57.640 market too, and we are in many many cases you're 0:17:57.680 --> 0:18:01.560 following our customers to these markets and investing there. So 0:18:01.600 --> 0:18:04.920 this is a very very positive environment. And you see 0:18:04.960 --> 0:18:08.600 also semiconductors of following so all the energy intensive critical 0:18:08.640 --> 0:18:10.960 infrastructure of businesses, they are coming to United States. This 0:18:11.000 --> 0:18:13.600 is a clear trend. We do know that also Europe 0:18:13.640 --> 0:18:21.920 is putting some support in subsidies for companies. This will 0:18:21.960 --> 0:18:26.320 also get some investment. But the competitive edge on low 0:18:26.440 --> 0:18:29.119 energy prices is a clear advantage for the United States. 0:18:29.560 --> 0:18:30.040 Talked a bitch. 0:18:30.040 --> 0:18:32.920 I'd love to discuss that competitive edge. Your home nation, 0:18:33.200 --> 0:18:37.920 Germany and its economy is being debated by the technology 0:18:37.960 --> 0:18:41.000 industry and at the same time, the EUS kind of 0:18:41.000 --> 0:18:43.600 response to the Inflation Reduction Act as a place to 0:18:43.640 --> 0:18:47.600 do business and incentivize investment. Talk to us about the 0:18:47.640 --> 0:18:51.120 equation for you of Germany versus the United States. 0:18:51.600 --> 0:18:53.880 I think you have to differentiate what kind of sectors 0:18:53.880 --> 0:18:56.920 you're looking into. As I said, energy intensive industries, it's 0:18:57.000 --> 0:18:59.439 very hard to defend. At the same time, we have 0:18:59.560 --> 0:19:03.359 a very strong ecosystems, and Germany in particular, it's not 0:19:03.400 --> 0:19:05.679 only the big companies, but it's all the whole ecosystem 0:19:05.720 --> 0:19:10.520 of small and medium sized enterprises in machine tools, machine manufacturing, 0:19:10.560 --> 0:19:15.159 but also for example, the medical industry, car industry, but 0:19:15.200 --> 0:19:19.240 also to some extent from acehutical chemical. If you look 0:19:19.320 --> 0:19:22.199 forward in the way how you can deploy new technologies 0:19:22.200 --> 0:19:25.760 in these markets, that gives you an idea which kind 0:19:25.760 --> 0:19:28.640 of industries you are able to defend or even expand. 0:19:28.920 --> 0:19:33.120 It's all about technology. I mean, Germany is an export 0:19:33.160 --> 0:19:36.120 countries and in the innovative countries, in the industrials country, 0:19:36.400 --> 0:19:38.200 and this is the strength that we have to play 0:19:38.280 --> 0:19:40.440 and we have to strength. And there's a reason why 0:19:40.520 --> 0:19:43.280 I very much support also the subsidies which we're giving 0:19:43.320 --> 0:19:47.040 into for Intel for example, but also for all Speed 0:19:47.040 --> 0:19:50.679 and TSMC to invest in semiconductors industry in Germany because 0:19:50.720 --> 0:19:53.399 we do have the right environment, the right people, educated people, 0:19:53.800 --> 0:19:56.320 a good environment to really also go for this kind 0:19:56.320 --> 0:19:59.520 of industry. So you have to look in a differentiated way, 0:19:59.680 --> 0:20:02.199 and there's still industries which I believe have a great future, 0:20:02.440 --> 0:20:06.399 but we have to build our strengths, produce ecosystems and technology. 0:20:06.640 --> 0:20:09.119 Zemian's global CEO Rolandish, thank you for your time here 0:20:09.119 --> 0:20:10.160 on blue Bed Technology. 0:20:10.320 --> 0:20:10.960 Caroline. 0:20:11.160 --> 0:20:13.600 Meanwhile, let's talk a little bit more about some of 0:20:13.600 --> 0:20:15.680 the companies that are out performing on the day, Yelp 0:20:15.760 --> 0:20:17.520 being one of them. We're going to be speaking with 0:20:17.560 --> 0:20:20.520 the CFO next on the company's earnings and they're managing 0:20:20.560 --> 0:20:41.640 to post double digit growth and revenue. This is Blombag Technology. 0:20:38.040 --> 0:20:41.199 Time now for talking tech. First up, Jeff Bezos says, well, 0:20:41.240 --> 0:20:42.399 he's moving to the East coast. 0:20:42.440 --> 0:20:46.200 The Amazon founder is relocating from Seattle to the Miami 0:20:46.240 --> 0:20:48.919 region in order to be close to his parents. The 0:20:48.920 --> 0:20:52.800 Blue Origin operations of course as well in Cape Canafron. Meanwhile, 0:20:53.080 --> 0:20:56.760 Xai will finally introduce this first AI model this weekend 0:20:56.960 --> 0:20:59.280 to select group of people and the billionaire Elon Musk 0:20:59.320 --> 0:21:02.159 started the bench over the summer. This comes million a 0:21:02.280 --> 0:21:05.280 day after Mask reiterated that AI post is an existential 0:21:05.320 --> 0:21:07.560 threat to humanity. That was over in the UK at 0:21:07.600 --> 0:21:11.120 the AI Safety summit, plus a new bipartisan bill would 0:21:11.119 --> 0:21:14.080 put the National Students Standards and Technology in chatter deploying 0:21:14.119 --> 0:21:17.240 AI safety standards. The bill, proposed by two US senators 0:21:17.359 --> 0:21:20.639 would direct this to provide federal agencies with safeguards for AI, 0:21:20.840 --> 0:21:23.760