WEBVTT - Sam Bankman-Fried Speaks Publicly, and TikTok's Tragedies 0:00:13.960 --> 0:00:16.599 I'm Caroline Hyde the Bloomberg's World headquarters in New York, 0:00:16.960 --> 0:00:19.400 and I Mad Ludlow in San Francisco. This is Bloomberg 0:00:19.480 --> 0:00:22.760 Technology coming up this hour. Sam bankmun Freed is taking 0:00:22.840 --> 0:00:24.960 live questions in the wake of the f t X 0:00:25.040 --> 0:00:28.880 contagion for bringing the headlines as we get them and 0:00:29.240 --> 0:00:33.800 the tragedies of TikTok. Bloomberg's Big Take investigates how trending 0:00:33.880 --> 0:00:36.559 challenges on the platform are turning out to be deadly 0:00:36.960 --> 0:00:39.800 for some children. We discussed why the world's most popular 0:00:39.840 --> 0:00:44.720 app isn't doing more to protect them. Meanwhile, the CEOs 0:00:44.760 --> 0:00:47.160 of Earn Your Leisure are here to explain how their 0:00:47.320 --> 0:00:51.319 financial literacy media platform is selling out venues from m 0:00:51.320 --> 0:00:55.000 s G to the Royal Albert Hall. The first black 0:00:55.040 --> 0:00:57.760 Rock chief executive, Larry Fink, saying earlier today the most 0:00:57.840 --> 0:01:00.720 crypto companies will probably fold in the wake of f 0:01:00.800 --> 0:01:03.120 t X is collapsed. This, of course, during the interview 0:01:03.120 --> 0:01:05.920 in the New York Times Deal Brooks Summit. This is 0:01:05.959 --> 0:01:08.360 of course now we see that s Bankwin Freed has 0:01:08.600 --> 0:01:11.160 taken to the virtual stage, appearing at the event as 0:01:11.200 --> 0:01:13.880 we speak, and passation. Ai Usk is here with all 0:01:13.880 --> 0:01:17.120 the latest some headlines coming from that event, some brkminfreed 0:01:17.240 --> 0:01:20.959 saying he, to his knowledge, f t x u u 0:01:21.080 --> 0:01:24.120 S platform is solvent, and overall that he made a 0:01:24.120 --> 0:01:26.600 lot of mistakes as the CEO of f t X. 0:01:26.959 --> 0:01:29.440 You have him first answering your question, or early in 0:01:29.440 --> 0:01:33.760 the program answering question by Andrew Ross Sorkin about gentleman 0:01:33.880 --> 0:01:35.720 a letter. He was reading a letter from a gentleman 0:01:35.720 --> 0:01:38.440 who lost his life savings, and then he asked Sam 0:01:38.480 --> 0:01:41.600 Bankman free to answer to that letter. And that's when 0:01:41.640 --> 0:01:43.800 Caroline he had said that f t x U S 0:01:44.040 --> 0:01:46.360 he to his knowledge, was solvent and you could withdraw 0:01:46.400 --> 0:01:49.080 today if they allowed for it. Now he's starting to 0:01:49.080 --> 0:01:51.760 talk a little bit about f t X the international business. 0:01:51.800 --> 0:01:54.720 We know he also had that interview with Axios over 0:01:54.760 --> 0:01:57.200 the last twenty four hours or so where he talked 0:01:57.240 --> 0:02:00.600 about getting those licenses around the world very quickly and 0:02:01.200 --> 0:02:05.400 the issues that have resulted from those international licenses that 0:02:05.440 --> 0:02:08.440 have been accumulated so quickly. I would also say that, 0:02:08.480 --> 0:02:10.080 you know, he started off with some of the things 0:02:10.080 --> 0:02:13.239 that he has said before. He is deeply sorry that 0:02:13.320 --> 0:02:16.120 he had wished he had done certain things differently, but 0:02:16.160 --> 0:02:18.120 it was only a month ago when he was excited 0:02:18.160 --> 0:02:20.840 about the prospects for f t X. So the tone 0:02:20.919 --> 0:02:24.519 he's been taking here is a pretty solemn, pretty somber 0:02:24.560 --> 0:02:27.639 and apologetic, I would say, is the first way he's 0:02:27.680 --> 0:02:30.080 coming off the bat. Yeah, there's certainly a level of 0:02:30.120 --> 0:02:33.080 contrition from Sam Bankman Freed right as you know. He 0:02:33.120 --> 0:02:34.800 says that he has mistakes that if he wish you 0:02:34.800 --> 0:02:37.440 could go back, he could change really early exchanges. Snali 0:02:37.480 --> 0:02:39.880 will continue to bring the headlines as they crossed. But 0:02:39.960 --> 0:02:42.840 what are the key questions that we want answered by 0:02:43.000 --> 0:02:46.560 SPF On stage, Andrew Starkin had acknowledged that the money here, 0:02:46.680 --> 0:02:49.600 the dollars where everything had gone. They might get into 0:02:49.680 --> 0:02:53.119 here the details of all of those transactions. Let's see 0:02:53.160 --> 0:02:55.440 how deep they get, but certainly they're starting with a 0:02:55.480 --> 0:02:58.440 bigger issue at play here. Will we get those answers 0:02:58.480 --> 0:03:00.800 about where the money went, particularly only the eight billion 0:03:00.840 --> 0:03:03.960 dollar hall in their reality. Shana Essek will keep us 0:03:04.000 --> 0:03:06.720 appressed of what's happening in that particular interview. Meanwhile, though, 0:03:06.960 --> 0:03:08.840 we just want to turn our attention to a huge 0:03:08.880 --> 0:03:12.760 story here on Bloomberg News today. A security concerns of 0:03:12.800 --> 0:03:16.720 a different type TikTok. They keep growing, and South Dakota 0:03:16.919 --> 0:03:19.880 is acting on it, banning TikTok on its government employee 0:03:19.880 --> 0:03:22.560 devices after the governor so that the social media apps 0:03:22.600 --> 0:03:27.240 ownership by a Chinese company poses a national security threat. 0:03:27.680 --> 0:03:31.360 This comes as today's Big Take is out too, and 0:03:31.440 --> 0:03:35.920 on different kinds of security concerns, this time surrounding children's 0:03:36.160 --> 0:03:39.320 safety on the platform. It was the front cover of 0:03:39.360 --> 0:03:42.440 this week's Business Week and was a real deep dive 0:03:42.480 --> 0:03:46.000 into some particularly heart wrenching stories, and I must warn 0:03:46.040 --> 0:03:49.600 you involve the death of some children. Greenberg's Olivia carvill 0:03:49.800 --> 0:03:54.240 is with the story and joins us now Olivia. It 0:03:54.360 --> 0:03:58.320 was a devastating read for anyone with any emotion. But 0:03:58.400 --> 0:04:00.840 I'm sure also of exact tives that need a business 0:04:00.880 --> 0:04:04.440 such as TikTok, then in many ways get singled out 0:04:04.960 --> 0:04:08.360 because of certain trends that occur on the platform that 0:04:08.840 --> 0:04:11.960 children who are too young consume and then are in 0:04:12.000 --> 0:04:15.160 some ways affected by. Just talk to us about how 0:04:15.200 --> 0:04:18.360 you came across the story and the reporting out of it. Yeah, 0:04:18.400 --> 0:04:21.400 I mean, we've been seeing cases of children who are 0:04:21.400 --> 0:04:24.560 too young to be able to access social media platforms 0:04:24.640 --> 0:04:29.520 having devastating consequences. Last year we saw Francis Hagen testifying 0:04:29.560 --> 0:04:33.359 in Congress about Meta and Facebook and Instagram and the 0:04:33.400 --> 0:04:37.719 mental health harms that it's been causing teenagers, particularly young girls. 0:04:38.320 --> 0:04:41.440 I also noticed that we were seeing a number of 0:04:41.560 --> 0:04:46.320 children dying participating in trending challenges on platforms, and I 0:04:46.400 --> 0:04:49.520 wanted to get a sense of what happens inside some 0:04:49.600 --> 0:04:53.680 of these companies when the worst case scenario occurs. So 0:04:53.760 --> 0:04:57.920 when an eight or nine year old child dies participating 0:04:57.960 --> 0:05:01.080 in an online deer or a trending challenge, how does 0:05:01.120 --> 0:05:05.320 the company respond? And as social media to blame in 0:05:05.360 --> 0:05:08.800 any of these cases, I think that question of liability 0:05:08.880 --> 0:05:12.520 or responsibility over these deaths is a really big one, 0:05:12.560 --> 0:05:16.240 and we've seen lawsuits filed in the US recently trying 0:05:16.240 --> 0:05:21.800 to raise that question in the courts. Oliver, you outline 0:05:21.920 --> 0:05:27.880 two specific cases of children who died carrying out something 0:05:28.000 --> 0:05:31.760 or emulating something they saw on the TikTok platform. Um 0:05:31.800 --> 0:05:34.200 I would encourage our global audience to go and read 0:05:34.279 --> 0:05:38.440 that story. But you also report on the response from 0:05:38.440 --> 0:05:41.840 within TikTok sources that the company explained to you what 0:05:41.920 --> 0:05:44.600 executives did next. Could you talk us through some of that, 0:05:45.400 --> 0:05:48.840 I was connected with more than two dozen individuals who 0:05:48.920 --> 0:05:52.200 worked on TikTok's trust and safety team to really try 0:05:52.240 --> 0:05:56.360 and get a sense of how TikTok internally handles these situations. 0:05:56.839 --> 0:05:59.720 The company has a trust and safety team, you know, 0:06:00.000 --> 0:06:04.320 thousands strong. They have about forty thou content moderators looking 0:06:04.360 --> 0:06:07.159 at the videos that are posted on TikTok on a 0:06:07.240 --> 0:06:11.840 daily basis, taking down anything problematic or potentially harmful. They 0:06:11.880 --> 0:06:16.080 have strict policies and guidelines set up to protect children, 0:06:16.560 --> 0:06:19.440 and so the platform has created a number of safety 0:06:19.480 --> 0:06:22.800 mechanisms to try and keep kids safe. But children are 0:06:22.839 --> 0:06:26.320 smart and they know how to side set those safety restrictions. 0:06:26.360 --> 0:06:28.320 So in terms of the videos I was seeing more 0:06:28.400 --> 0:06:31.279 recently that have been linked back to the blackout challenge, 0:06:31.680 --> 0:06:34.840 kids have started to misspell the words or come up 0:06:34.839 --> 0:06:38.320 with different hashtags or different code names in order to 0:06:38.400 --> 0:06:43.719 avoid those safety restrictions and keep this challenge trending. We're 0:06:44.080 --> 0:06:48.640 interestingly went to our own audience via Twitter and asked them, look, 0:06:48.640 --> 0:06:53.520 how can social platforms such as a TikTok become safer? Interestingly, 0:06:53.880 --> 0:06:57.800 the majority of it's only forts called for more regulation, 0:06:58.160 --> 0:07:00.760 age verification, came in at just twenty four point five. 0:07:01.520 --> 0:07:03.840 What's notable as the statistics in your story, more than 0:07:04.640 --> 0:07:06.719 us children have a cell phone by the age of twelve. 0:07:07.040 --> 0:07:09.159 Half of all kids from eight to eleven in the 0:07:09.240 --> 0:07:14.200 UK of viewing TikTok content daily. Is there a technological 0:07:14.320 --> 0:07:17.640 manner in which these sorts of platforms such as TikTok 0:07:17.680 --> 0:07:20.000 can make sure that someone who's claiming to be thirteen 0:07:20.120 --> 0:07:22.840 is actually thirteen. Yeah, and that's a really important point 0:07:22.880 --> 0:07:27.360 to remember that children who are thirteen and younger, or 0:07:27.440 --> 0:07:29.520 children who are under thirteen and not supposed to be 0:07:29.560 --> 0:07:32.640 on these platforms. Legally, there's laws set up to prevent 0:07:32.720 --> 0:07:36.880 kids from being on platforms like TikTok, But unfortunately it's 0:07:37.000 --> 0:07:40.120 very hard to figure out how old a user is. 0:07:40.360 --> 0:07:42.440 How do you tell the difference between a fourteen and 0:07:42.440 --> 0:07:44.840 a fifteen year old. It's hard for humans to do that, 0:07:45.240 --> 0:07:48.360 let alone to train artificial intelligence to do it. So 0:07:48.400 --> 0:07:50.920 there have been companies that have recently been set up 0:07:51.000 --> 0:07:55.680 trying to tackle this particular issue, the issue of age verification, 0:07:56.040 --> 0:07:59.760 which is something that all social media platforms are facing, 0:08:00.360 --> 0:08:04.680 and these third party providers are offering software that can 0:08:04.760 --> 0:08:08.600 actually tell when it's a child or when it's a teenager, 0:08:08.960 --> 0:08:12.040 and they're relatively accurate. So I was talking to a 0:08:12.120 --> 0:08:14.320 number of these providers trying to get a sense of 0:08:14.400 --> 0:08:17.040 how does the software work, what can you actually do? 0:08:17.400 --> 0:08:21.080 And unlike facial recognition technology, which is trying to identify 0:08:21.120 --> 0:08:25.000 the individual in the photo, this software is just looking 0:08:25.080 --> 0:08:28.200 at that face and guessing an age. I sent them 0:08:28.200 --> 0:08:30.559 a video of a nine year old girl who died 0:08:30.640 --> 0:08:33.680 participating in one of these challenges on TikTok, and it 0:08:33.720 --> 0:08:37.680 took that software three seconds to detect her age said 0:08:37.720 --> 0:08:40.280 she was ten years old, and she died three months 0:08:40.280 --> 0:08:45.400 before her tenth birthday. All right, Bloomberg's Olivia Carvill just 0:08:45.400 --> 0:08:48.600 just excellent reporting. I encourage the audience to read that 0:08:48.679 --> 0:08:51.240 on Bloomberg dot com, the Terminal and in Business Week. 0:08:52.000 --> 0:09:02.320 Just great detail. What's happening with the TikTok platform. Apple 0:09:02.440 --> 0:09:05.160 CEO Tim Cook is doing the rounds in Washington, meeting 0:09:05.160 --> 0:09:08.360 with top Republican lawmakers as the company seems to forge 0:09:08.440 --> 0:09:10.719 ties with the GOP ahead of the party's takeover of 0:09:10.760 --> 0:09:13.319 the House early next year. Now, this is all according 0:09:13.360 --> 0:09:16.720 to people familiar with the visit. Interesting timing given the 0:09:16.720 --> 0:09:20.240 recent tirade from one Elon Musk about Apple's dominance for 0:09:20.400 --> 0:09:23.040 its app store, and all the more intriguing is Elon 0:09:23.120 --> 0:09:27.079 Musk suggested he was actually at Apple headquarters today with 0:09:27.120 --> 0:09:29.880 Tim Cook. Our very own Mark German is here with 0:09:30.000 --> 0:09:33.360 the latest intriguing Indeed, just talk to us Mark about well, 0:09:33.400 --> 0:09:37.600 first and foremost the visit itself from Tim Cook. Yeah, 0:09:37.640 --> 0:09:40.600 clearly Cook is having a very busy week. He's scheduled 0:09:40.640 --> 0:09:44.120 to meet with some top DC lawmakers. Obviously, he has 0:09:44.160 --> 0:09:48.480 Elon Musk in Cupertino at the Apple Park headquarters earlier 0:09:48.520 --> 0:09:51.400 today around lunchtime. They went through a walk through the campus. 0:09:51.960 --> 0:09:54.680 Obviously we all know what they talked about. I'm curious 0:09:54.679 --> 0:09:57.599 to know if Musk asked for special pricing on the 0:09:57.640 --> 0:10:00.440 app store. But in terms of this DC meeting, he's 0:10:00.440 --> 0:10:03.199 scheduled to meet with Jim Jordan's. He scheduled to meet 0:10:03.200 --> 0:10:06.560 with darryl Issa and some of these lawmakers cities that 0:10:06.679 --> 0:10:08.160 is meeting with. They're going to be at the top 0:10:08.400 --> 0:10:10.720 right of the GOP when they take back the House 0:10:11.080 --> 0:10:13.679 next year, so it's important for Cook to rebuild these 0:10:13.720 --> 0:10:17.720 relationships given the changeover happening in Congress. Obviously Apple is 0:10:17.720 --> 0:10:20.359 going to continue to be under a lot of scrutiny 0:10:20.520 --> 0:10:24.120 right whether it's the Twitter situation, free speech, content moderation, 0:10:24.640 --> 0:10:26.480 whether that has to do with the app store and 0:10:26.520 --> 0:10:29.319 the fees that you know some developers aren't happy with 0:10:29.400 --> 0:10:32.440 obviously at the Epic Games trial UH several months ago, 0:10:32.480 --> 0:10:37.280 but that still remains ongoing. Privacy and security, the environment. 0:10:37.360 --> 0:10:40.960 Clearly many different issues that both Apple and Congress are 0:10:41.000 --> 0:10:43.640 overlapping with and are probably going to continue to discuss 0:10:43.720 --> 0:10:47.600 for years ahead. Obviously there's the efforts to sort of 0:10:47.600 --> 0:10:50.160 rein in on tech giants overall, so it's important for 0:10:50.280 --> 0:10:52.360 Cook to get in there and have these relationships with 0:10:52.400 --> 0:10:55.880 the top lawmakers. We should point out we ofst Apple, 0:10:56.360 --> 0:10:59.600 if Ela Mosque was telling the truth or or whether 0:11:00.200 --> 0:11:02.760 he was in Apple HQ or not. My understanding his 0:11:02.840 --> 0:11:05.600 Apple didn't respond to that request. Maybe you can clarify. 0:11:05.840 --> 0:11:08.200 The other big story, of course is China and what's 0:11:08.200 --> 0:11:11.600 happening in Jong Joe. Give us the latest around iPhone 0:11:11.640 --> 0:11:15.920 fourteen pro production there. Yeah, regarding Musk and his visit 0:11:15.960 --> 0:11:19.079 to Apple today, I have no reason to believe that 0:11:19.080 --> 0:11:21.800 that visit didn't happen. I mean, I think it's accurate. 0:11:21.880 --> 0:11:24.160 It looks like Tim there and from what I've heard, uh, 0:11:24.200 --> 0:11:27.080 you know, Musk is there or was there earlier today. 0:11:27.920 --> 0:11:30.480 I know Musk likes to prank a lot on Twitter, 0:11:30.559 --> 0:11:33.360 and you know, tweet things that made maybe the public 0:11:33.400 --> 0:11:36.640 wouldn't necessarily believe or if not entirely accurate. But I 0:11:36.679 --> 0:11:40.040 don't think this one was inaccurate at all, to say 0:11:40.080 --> 0:11:42.920 the least. In terms of the iPhone fourteen, we're hearing 0:11:42.920 --> 0:11:45.040 that there's going to be a unit declined from the 0:11:45.040 --> 0:11:49.600 original ninety million to something north of eighty million. That's 0:11:49.600 --> 0:11:52.480 a combination of the riots and the COVID impact on 0:11:52.520 --> 0:11:56.600 the iPhone fourteen Pro factory, but also people not buying 0:11:56.640 --> 0:11:59.480 the regular iphon fourteen and iPhone fourteen plus the Pro 0:11:59.600 --> 0:12:03.880 models in quantities that Apple maybe initially anticipated. But I 0:12:03.920 --> 0:12:07.120 think things are starting to turn around. I actually ordered 0:12:07.120 --> 0:12:10.880 an iPhone fourteen Pro from a carrier, Verizon, earlier this week, 0:12:10.880 --> 0:12:14.160 and that scheduled to arrive in mid December. So depending 0:12:14.160 --> 0:12:16.680 on where you're buying from, I think things are they're 0:12:16.679 --> 0:12:20.440 going to improve the next few weeks. Alright, Bloomberg's Mark German, 0:12:20.480 --> 0:12:23.040 thank you very much. Let's stick with Apple dig into 0:12:23.040 --> 0:12:25.679 it all with Shannon cross I, t hardware analyst at 0:12:25.679 --> 0:12:28.480 Credit Sweets who covers Apple, among other things. She joins 0:12:28.559 --> 0:12:31.320 us from the Credit Swiss anual Technology conference. Shannon, I 0:12:31.360 --> 0:12:34.040 was reading your research and you point out that if 0:12:34.080 --> 0:12:36.800 you had tried to buy an iPhone thirteen at the 0:12:36.840 --> 0:12:39.280 same time last year, you'd get it much more quickly 0:12:39.559 --> 0:12:41.760 then if you try to buy an iPhone fourteen Pro 0:12:41.880 --> 0:12:47.959 model right now Christmas period two. What's going on for Apple? Well, 0:12:48.000 --> 0:12:50.439 I mean, clearly there are issues with with production, and 0:12:50.679 --> 0:12:53.600 you know, everybody's seen the videos and and what's going 0:12:53.640 --> 0:12:55.720 on in China right now. I think Apple is working 0:12:55.760 --> 0:12:58.679 as quickly as they can to help box Con and 0:12:58.760 --> 0:13:02.600 Hanhai basically Reese Art production. UM. I would say they 0:13:02.600 --> 0:13:04.840 have people on the ground that are they're trying to 0:13:05.240 --> 0:13:08.839 help the employees and and and fix some of the issues. UM. 0:13:08.840 --> 0:13:10.720 But you know, Apple did put out a press release 0:13:10.920 --> 0:13:13.640 UM a few weeks ago basically saying there was gonna 0:13:13.679 --> 0:13:16.360 be some some challenges with supply, and you know, I 0:13:16.360 --> 0:13:20.520 think what we're looking at basically is a situation where 0:13:20.960 --> 0:13:24.319 right now, if you order an Apple dot com, you're 0:13:24.320 --> 0:13:27.200 going to get your phone before the end of the year. 0:13:27.480 --> 0:13:30.280 So I'm watching to see when that actually shifts into January, 0:13:30.280 --> 0:13:33.120 and at that point, then that revenue is not going 0:13:33.160 --> 0:13:36.160 to actually hit in the December quarter and it'll actually 0:13:36.160 --> 0:13:38.400 shift over into the March quarter. You know, I think 0:13:38.640 --> 0:13:40.400 I don't think at this point we really seem to 0:13:40.400 --> 0:13:43.520 demand destruction. I think that the bigger issue that you're 0:13:43.520 --> 0:13:46.720 seeing right now is just a supply issue. You have 0:13:46.800 --> 0:13:49.280 an outperform rating on the stock hunt eighty four dollar 0:13:49.320 --> 0:13:51.600 price target that's well above the hundred forty eight where 0:13:51.640 --> 0:13:53.679 we are now at the moment, Shannon, just talk to 0:13:53.800 --> 0:13:57.319 us about the risks to the outside of the downside here? 0:13:57.360 --> 0:13:59.360 Is it more likely? Are you worried not only about 0:13:59.360 --> 0:14:01.439 the supply chain headaches but sort of the pr hit 0:14:01.559 --> 0:14:04.120 that a company such as Apple has by having so 0:14:04.200 --> 0:14:06.400 much a supply chain in China and indeed the sort 0:14:06.440 --> 0:14:09.200 of human cost of that, or is that ultimately not 0:14:09.360 --> 0:14:12.280 a key concern for you? Well, look, I think it's 0:14:12.360 --> 0:14:14.680 it's always been a risk for app for Apple. I mean, 0:14:14.720 --> 0:14:17.280 Apple has a very good relationship with governments around the world. 0:14:17.640 --> 0:14:19.680 They employ an awful lot of people, and there's like 0:14:19.720 --> 0:14:22.040 a billion seven people are a billion that would be 0:14:22.040 --> 0:14:27.440 a lot millions of people that are employed around the 0:14:27.920 --> 0:14:30.400 factory area. And it's not just the factory, right, It's 0:14:30.480 --> 0:14:33.040 it's the shop down the street that makes the widget 0:14:33.080 --> 0:14:34.480 that goes on the phone, and then the one that 0:14:34.520 --> 0:14:36.720 makes the glue. And you know, they have a really 0:14:36.760 --> 0:14:40.160 strong ecosystem of production. And and it is a risk 0:14:40.240 --> 0:14:43.160 because whenever you have something in one area, you know 0:14:43.360 --> 0:14:47.800 you're you're gonna be it's susceptible to issues. But you know, 0:14:47.840 --> 0:14:51.200 I think Apple has shown during the pandemic um that 0:14:51.240 --> 0:14:54.160 they were able to come in with their partners and manufacture. 0:14:54.200 --> 0:14:56.360 They have a lot of partners that help them with 0:14:56.400 --> 0:15:00.360 the manufacturing. They are shifting some manufacturing to India, although 0:15:00.360 --> 0:15:01.840 that will take a long time. I mean the way 0:15:01.840 --> 0:15:04.240 it's been described as you know, it's spent. They've spent 0:15:04.360 --> 0:15:08.760 fifteen years building a supply chain in um in China, 0:15:09.000 --> 0:15:11.440 and you can't just you know, rip and replace that overnight. 0:15:11.480 --> 0:15:12.840 And I don't think they would want to. I mean, 0:15:13.240 --> 0:15:15.840 China is an important market for them as well, so 0:15:16.120 --> 0:15:18.760 you know, from the standpoint of the Chinese government, it's important. 0:15:18.760 --> 0:15:20.600 And then to keep people employed, and then from an 0:15:20.600 --> 0:15:23.640 output perspective, you know, obviously they're they're pretty reliant at 0:15:23.640 --> 0:15:26.400 this point. Shannon, We've been excited to have you on 0:15:26.520 --> 0:15:29.680 because you cover the world of hardware, but that encompasses 0:15:29.720 --> 0:15:32.360 many companies. A name that's jumped out in me is 0:15:32.520 --> 0:15:36.080 HP Inc. And up to six thousand jobs cut over 0:15:36.120 --> 0:15:40.200 the next three years. What's your assessment of job cuts 0:15:40.200 --> 0:15:42.880 in the world you cover, and and and also just 0:15:43.080 --> 0:15:45.920 financial discipline in response to kind of a slow down 0:15:45.920 --> 0:15:49.400 in the end markets. You know, it's essentially we're having 0:15:49.480 --> 0:15:51.800 So this is the credit sweez Um. It's our twenty 0:15:51.840 --> 0:15:54.320 six annual conference that we're holding out here. We have 0:15:54.800 --> 0:15:59.600 hundred employees or employees attendees and actually um I interviewed 0:15:59.600 --> 0:16:03.280 the PO of HP today. So you know, I think 0:16:03.720 --> 0:16:06.040 HP is in a in an interesting situation. You've come 0:16:06.040 --> 0:16:10.040 out of the pandemic where uh PCs were elevated and 0:16:10.120 --> 0:16:12.160 everybody went out. You know, you had a hybrid work 0:16:12.160 --> 0:16:14.200 and so people needed a PC, they needed a printer. 0:16:14.680 --> 0:16:16.920 And now we're in a bit of a situation where 0:16:17.040 --> 0:16:19.240 they're digesting things. But the other thing to keep in 0:16:19.280 --> 0:16:22.080 mind with HP is that they have certain pillars of 0:16:22.240 --> 0:16:24.400 growth that they're looking at. And you know, one of 0:16:24.440 --> 0:16:27.800 that is is peripherals. They bought Polly Polly It closed 0:16:27.840 --> 0:16:30.080 UM a few weeks ago. You've also got three D 0:16:30.160 --> 0:16:33.000 printing UM. They're they're focused on a number of different 0:16:33.040 --> 0:16:35.400 areas and one of the things that they are doing 0:16:35.400 --> 0:16:38.480 with this restructuring is really trying to position all the 0:16:38.560 --> 0:16:43.760 systems and their sales strategy and manufacturing such too that 0:16:43.760 --> 0:16:46.200 they're able to support where they see growth coming from 0:16:46.200 --> 0:16:48.560 in the future, because you know, I think they are 0:16:48.640 --> 0:16:51.920 cognizant of and and frankly investors are cognizant of the 0:16:51.960 --> 0:16:54.720 fact that printers are in a secular decline. I mean, 0:16:54.760 --> 0:16:56.600 they can manage the secular decline and they may be 0:16:56.680 --> 0:16:59.520 a share gainer there over time, but you know, you've 0:16:59.520 --> 0:17:01.560 got that. And then PCs are kind of they're going 0:17:01.600 --> 0:17:03.400 to be in a cycle. We had a big up 0:17:03.440 --> 0:17:06.440 cycle during the pandemic and now we're in a digestion phase. 0:17:06.520 --> 0:17:10.960 So you know, I think mature tech companies, which I 0:17:11.000 --> 0:17:13.960 tend to cover a lot of, are constantly trying to 0:17:14.520 --> 0:17:18.399 reduce costs, optimize and manage to the future, because again, 0:17:18.640 --> 0:17:20.520 when you don't grow very much or you start to 0:17:20.560 --> 0:17:23.119 decline a bit, you know, the way to drive incremental 0:17:23.359 --> 0:17:27.359 cash flow and incremental earnings is basically through you know, 0:17:27.440 --> 0:17:31.240 cost reductions and optimization of your infrastructure. Talked to us 0:17:31.280 --> 0:17:34.080 among these companies, Apple, Dell, Pure Storage, A lot of 0:17:34.080 --> 0:17:36.879 these companies you cover we talk a lot about on 0:17:36.920 --> 0:17:39.560 the show, the geopolitics, and of course Apple has been 0:17:39.560 --> 0:17:41.360 swelled in that when it comes to China. Just talked 0:17:41.359 --> 0:17:43.239 to us and steady seconds about the app Store. How 0:17:43.320 --> 0:17:47.239 are all you about the revenues from that? Well, you know, 0:17:47.359 --> 0:17:50.399 I think the the App Store, there's one of the 0:17:50.400 --> 0:17:53.200 reasons why it outperformed during the pandemic was because people 0:17:53.240 --> 0:17:55.320 were home and people are playing games, and and that's 0:17:55.320 --> 0:17:57.600 a good way that they generate revenue. You know, we're 0:17:57.600 --> 0:18:01.760 no longer home playing games. I mean this this UM 0:18:01.920 --> 0:18:04.240 conference that I'm at, it's it's packed with people. People 0:18:04.280 --> 0:18:07.360 are roaming around, we're you know, interacting, we're traveling, we're 0:18:07.400 --> 0:18:09.920 doing other things. The other thing, you know, on an 0:18:09.920 --> 0:18:13.000 off sort of an um offset to what's going on 0:18:13.040 --> 0:18:14.760 in China right now, is that you do have a 0:18:14.800 --> 0:18:17.399 situation where if people are at home and they're you know, 0:18:17.480 --> 0:18:19.959 because of COVID restrictions, we may see a little bit 0:18:19.960 --> 0:18:21.960 of an upside there, so you know, I think, Jane, 0:18:21.960 --> 0:18:24.879 and I'm sorry to cut you off. Shannon. We we 0:18:24.880 --> 0:18:26.840 we will have you back very soon. But we've got 0:18:26.920 --> 0:18:29.960 a head off, Shannon Cross, I T hardware analysts at 0:18:29.960 --> 0:18:33.359 Credit Suite. Thank you coming up. Treasury Secretary Janet Yellen 0:18:33.440 --> 0:18:36.960 says she misspoke when she downplayed the possibility of probing 0:18:37.000 --> 0:18:39.359 the Musque Twitter deal. More on that next, This is 0:18:39.359 --> 0:18:52.560 Bloomberg time for talking tech. Elon Musk's purchase of Twitter 0:18:52.600 --> 0:18:56.120 could be subject to a government review after all. Treasury 0:18:56.119 --> 0:18:59.880 Secretary Janet Yellen says she misspoke earlier this month when 0:19:00.000 --> 0:19:04.280 you told CBS she saw no basis for scrutiny. On Wednesday, 0:19:04.520 --> 0:19:06.760 Yellen told an audience at the New York Times event 0:19:06.840 --> 0:19:09.680 that if there are risks with the deal in general, 0:19:10.040 --> 0:19:14.040 actually quote, it would be appropriate for SCIFIUS to take 0:19:14.080 --> 0:19:17.000 a look sifious. That's a reference to the Committee on 0:19:17.080 --> 0:19:20.760 Foreign Investment in the US, which Yellen leads. The panel 0:19:20.800 --> 0:19:24.800 of government officials reviews investments in American businesses by foreign 0:19:24.840 --> 0:19:28.120 buyers and decides if there's a national security risks. Now, 0:19:28.359 --> 0:19:32.080 foreign investors did back masks deal to take Twitter private, 0:19:32.480 --> 0:19:36.040 and a potential action by Cifius emerge due to concerns 0:19:36.040 --> 0:19:40.040 over how masks many business interests overlap with US national 0:19:40.119 --> 0:19:43.199 security priorities. Yellen also stated by the way she couldn't 0:19:43.200 --> 0:19:46.800 comment on specific reviews or what was specifically being looked at. 0:19:54.400 --> 0:19:56.639 Welcome back to even meg Technology. I'm Caroline Hide in 0:19:56.640 --> 0:20:00.560 New York alongside Ed Ludlow in San Francisco. Now, Damelio 0:20:00.680 --> 0:20:03.560 family of TikTok fame is announced their first investments from 0:20:03.560 --> 0:20:06.160 their families Venture capital fund. It's a twenty five million 0:20:06.200 --> 0:20:09.960 dollar fund recently invested so far in four startups backing 0:20:10.000 --> 0:20:13.560 mid stage, high growth tech businesses, but they're primarily started 0:20:13.560 --> 0:20:16.479 by women and minority founders. Doug rennet is with us 0:20:16.520 --> 0:20:19.320 is co founding partner of four four four Capital and 0:20:19.359 --> 0:20:21.840 talk us through this is about what you have said 0:20:22.040 --> 0:20:25.719 combating systemic inequities and technology and business world by funding 0:20:25.720 --> 0:20:29.159 the next generation of female and minority entrepreneurs. Talked to 0:20:29.240 --> 0:20:31.480 us about the brands that you've picked, the companies you picked, 0:20:31.520 --> 0:20:36.600 and why they stood out for you. Yeah, that's right, Caroline. Um. 0:20:36.640 --> 0:20:40.439 We actually have backed six startups to date. We launched 0:20:40.480 --> 0:20:44.080 a little over two quarters ago and we and we 0:20:44.480 --> 0:20:48.040 just announced those six startups, and four of them were 0:20:48.080 --> 0:20:52.399 backed by women founders. When we teamed up myself and 0:20:52.480 --> 0:20:55.720 my co founding partner Jeff Beacher with the Damelio Family, 0:20:56.400 --> 0:20:59.440 we really felt it was important to use our collective 0:20:59.480 --> 0:21:03.600 platform to boost both women and minority founders. They've had 0:21:03.960 --> 0:21:08.639 a tougher time and have been underrepresented for years um 0:21:08.680 --> 0:21:10.560 and that's that's what we've set out to do. It 0:21:10.640 --> 0:21:13.640 was great to see that of the four women back 0:21:13.760 --> 0:21:17.560 companies that we uh, women founded companies that we backed, 0:21:18.160 --> 0:21:21.399 all four of them had founders picked recently on Income 0:21:21.440 --> 0:21:24.680 Magazine's Top one female founder lists, So that was great 0:21:24.720 --> 0:21:30.160 validation that we're picking remarkable women founders. Doug, I want 0:21:30.160 --> 0:21:32.560 to point out that four four four Capital runs the 0:21:32.640 --> 0:21:37.199 investment operations right for Damelio Family Funds. To kind of 0:21:37.240 --> 0:21:41.080 explain your role in this, I find this really interesting, Caroline, 0:21:41.080 --> 0:21:44.400 at this stage, mid stage, high growth, and we think 0:21:44.400 --> 0:21:47.600 about the news cycle right now, layoffs across tech, the 0:21:47.680 --> 0:21:50.520 higher rate environment. What kind of conversations are you having 0:21:50.880 --> 0:21:56.240 with those mid stage, high growth companies. Yeah, great, question ed. So, 0:21:56.480 --> 0:21:59.800 first of all, to clarify, we teamed up with the 0:22:00.160 --> 0:22:04.479 Damilo family to invest our own capital plus third party 0:22:04.520 --> 0:22:09.040 capital into these high growth, midstage tech companies. So we're 0:22:09.080 --> 0:22:13.280