WEBVTT - FTX's Missing Billions and Neuralink's Promise 0:00:14.600 --> 0:00:17.840 I met Ludlow in San Francisco. This is Bloomberg Technology, 0:00:17.920 --> 0:00:21.599 Sam bankman Fried speaks, but questions remain. We discussed the 0:00:21.640 --> 0:00:25.919 mystery that still surrounds the missing billions at spfs, bankrupt 0:00:25.960 --> 0:00:29.720 crypto exchange f t X. Then we're turning into a 0:00:29.800 --> 0:00:33.960 buy now, pay later economy, especially this holiday season as 0:00:33.960 --> 0:00:38.560 shoppers try to stretch their dollar. Klaners CEO on its 0:00:38.600 --> 0:00:42.239 fight to reach profitability and how regulation could impact the 0:00:42.280 --> 0:00:46.200 buy now, pay later industry. And Musk takes a break 0:00:46.240 --> 0:00:49.519 from Twitter to talk well brain surgery. The world's richest 0:00:49.520 --> 0:00:53.519 person says Neuralink could start human implants within six months 0:00:53.840 --> 0:00:58.000 and makes big promises for the tech, including cures for 0:00:58.080 --> 0:01:02.200 paralysis and blindness. Welcome, fus, let's gonna check on those 0:01:02.240 --> 0:01:05.880 markets here. It's been Katie Rfield high. Katie High ed Well, 0:01:05.920 --> 0:01:08.720 it was a pretty muted day overall. Remember we had 0:01:08.760 --> 0:01:12.160 a big, big rally yesterday after Pal suggested that maybe 0:01:12.280 --> 0:01:15.480 the FED might start dialing back the pace of rate hikes. 0:01:15.480 --> 0:01:18.039 Then you look today ahead, the big payrolls print tomorrow. 0:01:18.319 --> 0:01:20.800 Not too much movement in the SMP five hundred. The 0:01:20.880 --> 0:01:23.560 NASA one squeaked out a little bit of a game. 0:01:23.640 --> 0:01:26.319 You did see a big drop in the socks, but 0:01:26.680 --> 0:01:30.280 again at the big benchmark level, not too much movement, 0:01:30.400 --> 0:01:32.840 even though we're looking at a pretty big rally in 0:01:32.959 --> 0:01:36.160 the bond market, those tenure treasure yields dropping by about 0:01:36.200 --> 0:01:40.319 ten basis points or so. But this muted volatility that 0:01:40.319 --> 0:01:42.800 we've been seeing in the markets, it's definitely a theme. 0:01:42.880 --> 0:01:45.600 Let's take a look at the volatility index, the VIX, 0:01:45.920 --> 0:01:49.600 if you will. It dropped below twenty. It's has a 0:01:49.760 --> 0:01:52.080 nineteen handle, and as you can see, it's just been 0:01:52.080 --> 0:01:55.440 grinding tighter and tighter in this very narrow range. So, 0:01:55.520 --> 0:01:57.160 even though I don't know, it's felt like a pretty 0:01:57.200 --> 0:02:00.880 volatile year, not too much action at the our market level. 0:02:00.920 --> 0:02:03.480 But I'm dying to talk about crypto. Let's do that 0:02:03.600 --> 0:02:07.559 right now and look at bitcoin, because Bitcoin, even amid 0:02:07.600 --> 0:02:09.800 all of this chaos that we're seeing at the company 0:02:09.880 --> 0:02:11.720 level in the wake of what we saw with f 0:02:11.840 --> 0:02:14.679 t X, bitcoin is actually having a pretty good run. 0:02:14.760 --> 0:02:16.960 It's up about two and a half percent or so 0:02:17.120 --> 0:02:19.799 over the past five days, and I'm going to say 0:02:19.800 --> 0:02:23.440 it's a macro asset. It's doing fine, all right, Let's 0:02:23.440 --> 0:02:26.120 stick with this broader theme, Katie, stay with us. We 0:02:26.200 --> 0:02:28.640 look at the biggest story in crypto right now, the 0:02:28.760 --> 0:02:31.560 ongoing story f t X is collapse and Sam Bank 0:02:31.600 --> 0:02:34.280 and and Freed, who was at one point worth twenty 0:02:34.400 --> 0:02:38.160 six billion dollars he now claims quote that's worth close 0:02:38.240 --> 0:02:40.959 to nothing. Those were his words at the New York 0:02:41.000 --> 0:02:44.560 Times deal Books summit yesterday, and luckily for us, Bloomberg's 0:02:44.560 --> 0:02:46.919 Annie Massa was in the room and joins us now 0:02:47.320 --> 0:02:51.280 for more. Did we solve the mystery, Annie, of the 0:02:51.320 --> 0:02:54.480 missing billions and where they are? I think that would 0:02:54.480 --> 0:02:57.040 be a little bit too easy. We're far from fully 0:02:57.080 --> 0:03:00.919 having solved the mystery. Um, So yes your day. SPF 0:03:01.000 --> 0:03:03.200 did speak at the deal book conference here in New York, 0:03:03.400 --> 0:03:06.720 and I would say he answered a lot of questions, 0:03:06.760 --> 0:03:09.520 but we didn't get a lot of answers. He's kind 0:03:09.560 --> 0:03:12.400 of on an apology tour now, giving his side of 0:03:12.400 --> 0:03:15.280 the story and saying that he's sorry that he screwed 0:03:15.400 --> 0:03:20.280 up um and overextended basically, but he he as far 0:03:20.320 --> 0:03:24.280 as actually offering any explanation of what went wrong. Uh, 0:03:24.480 --> 0:03:27.680 he hasn't given us much and there was some surprise 0:03:27.800 --> 0:03:31.440 that he actually turned up, albeit virtually, you know, he 0:03:31.680 --> 0:03:34.920 joined from the Bahamas. But you were there, there was 0:03:35.000 --> 0:03:38.600 some protests on site against him appearing at the conference, 0:03:38.640 --> 0:03:41.520 weren't there, absolutely So, even to get into the venue, 0:03:41.600 --> 0:03:45.920 which was in Columbus Circle in Manhattan, there were protesters outside, 0:03:45.960 --> 0:03:49.560 kind of these dueling camps of protesters who were protesting 0:03:49.560 --> 0:03:53.160 not just SPF and had pamphlets saying that this guy 0:03:53.200 --> 0:03:56.400 is an embezzler, but they were also protesting others on 0:03:56.480 --> 0:03:58.440 the on the program as well, which was a little 0:03:58.440 --> 0:04:00.760 bit of a surprise to see all their name alongside 0:04:01.200 --> 0:04:04.040 uh Sam Bankman, Freed's, but he was one of the 0:04:04.080 --> 0:04:07.160 people making an appearance there that they were absolutely protesting. 0:04:07.200 --> 0:04:11.560 It was a little bit controversial that he appeared at all. 0:04:11.880 --> 0:04:15.360 He was on this program to appear at the conference 0:04:15.640 --> 0:04:17.920 long before f t x S blow up, and so 0:04:18.000 --> 0:04:21.080 some people were surprised that he got the platform to speak. 0:04:21.520 --> 0:04:24.280 But to their credit, there were some really tough questions 0:04:24.400 --> 0:04:29.839 and SPF tried to wriggle free but didn't really pull 0:04:29.920 --> 0:04:33.080 that off. Well, Anny, to your point, it's just amazing 0:04:33.120 --> 0:04:35.640 that this man keeps talking, and I want to talk 0:04:35.680 --> 0:04:38.880 about where we could see him speak next, because the 0:04:38.960 --> 0:04:42.159 Senate did here held hearing today on the f t 0:04:42.440 --> 0:04:46.280 X collapse. Can we expect to see SPF actually on 0:04:46.320 --> 0:04:49.239 the floor of Congress at any point? I mean, it's 0:04:49.279 --> 0:04:52.760 definitely possible. One thing that came up at the conference was, uh, 0:04:53.279 --> 0:04:56.640 SPF was asked, what do your lawyers make of the 0:04:56.680 --> 0:04:59.560 fact that you're appearing here today virtually? And he kind 0:04:59.560 --> 0:05:03.240 of grumb that they didn't really they weren't too happy 0:05:03.279 --> 0:05:07.000 about it. So he's going about rogue. It would appear, Katie, 0:05:07.000 --> 0:05:10.240 we were glued to our computer screens, as we always are. 0:05:10.760 --> 0:05:14.520 SPF not the only speaker, not at least on this topic. 0:05:15.040 --> 0:05:18.760 Janet Yellen, Treasury Secretary, what she's been talking about. You know, 0:05:19.120 --> 0:05:21.600 I'm sorry, I mean, I'll let me take this. I 0:05:21.640 --> 0:05:24.279 want to talk about Janet Yellen because it's interesting trying 0:05:24.320 --> 0:05:27.680 to map the contagion. Obviously, when we talk about contagion, 0:05:27.680 --> 0:05:29.839 there's been a lot of worries about spill over into 0:05:29.880 --> 0:05:33.160 the broader financial system. But Jannet Yell and she did 0:05:33.160 --> 0:05:35.799 say yesterday that if you look for the silver linings, 0:05:35.839 --> 0:05:39.520 basically the good part of this explosion that it hasn't 0:05:39.560 --> 0:05:43.000 really spilled over into the traditional banking sector, and that 0:05:43.040 --> 0:05:45.960 point was actually echoed by Michael bar today, of course, 0:05:45.960 --> 0:05:48.719 the FED Vice Chair for Supervision. He said that the 0:05:48.800 --> 0:05:52.480 crypto risks to the core financial system, they've been muted 0:05:52.720 --> 0:05:55.760 so far, So if you're looking for systemic sort of 0:05:55.839 --> 0:05:59.240 fears here, they really haven't appeared yet. A lot of 0:05:59.320 --> 0:06:02.120 folks have been going in. Annie. We just heard about 0:06:02.120 --> 0:06:05.800 the kind of yelling perspective. Larry Fink, for example, what 0:06:05.839 --> 0:06:09.760 are these voices saying about the f t X situation. Yeah, 0:06:09.800 --> 0:06:11.960 Larry thinks an interesting one. He was also on the 0:06:11.960 --> 0:06:15.279 program at the deal but conference yesterday and he mentioned 0:06:15.720 --> 0:06:19.000 this is known, but black Rock had some exposure to 0:06:19.440 --> 0:06:21.600 f t X. It had made a twenty four million 0:06:21.640 --> 0:06:25.080 dollar investment through a fund of funds. So Fink was 0:06:25.120 --> 0:06:28.640 saying that he thinks that there's definitely a reckoning to 0:06:28.720 --> 0:06:31.880 come and black Rock is not immune from that, nor 0:06:31.920 --> 0:06:34.640 are any number of vcs that invested in f t X. 0:06:35.839 --> 0:06:40.320 Okay Bloombergs, Katie Growfeld and Annie Massa unraveling the unravellable 0:06:40.480 --> 0:06:43.800 thank you. Meanwhile, Apple is ramping up work on its 0:06:43.839 --> 0:06:47.800 long awaited mixed reality headset. The company changed the name 0:06:47.839 --> 0:06:51.520 of the operating system to x r O S. According 0:06:51.520 --> 0:06:55.279 to sources, that's a nod to extended reality, which encompasses 0:06:55.320 --> 0:06:59.160 both augmented and virtual reality. The headset would be its 0:06:59.200 --> 0:07:02.440 first major new product category since the Apple Watch in 0:07:02.480 --> 0:07:06.080 twenty fifteen. Who had the scoop, of course, bloombergs Mark German, 0:07:06.320 --> 0:07:09.440 who joins US now from Los Angeles, mark, x R 0:07:09.480 --> 0:07:12.560 O S. What's the thinking behind it? Yeah, Ed, thank 0:07:12.560 --> 0:07:14.520 you so much for having me so. Originally, when they've 0:07:14.560 --> 0:07:17.640 been working on this mixed reality operating system, which, like 0:07:17.680 --> 0:07:19.680 you said, blend's a R and v R, they were 0:07:19.720 --> 0:07:22.520 calling it reality O S and r OS, but they've 0:07:22.520 --> 0:07:25.920 shifted now to a term called x R O S. 0:07:26.040 --> 0:07:30.920 It's a bit shorter and it's more translatable across many geographies. Right, 0:07:31.000 --> 0:07:34.200 reality is not a word like iPad or iPhone or 0:07:34.280 --> 0:07:37.440 watch or TV that's very universal. Reality is not a 0:07:37.520 --> 0:07:40.120 universal word, so they needed more of a universal term. 0:07:40.400 --> 0:07:43.640 That's why they're leaning towards x R OS. They've also 0:07:43.840 --> 0:07:47.600 trademarked x R O S in several countries internationally, and 0:07:47.640 --> 0:07:49.680 they're fighting for the trademark in the U S as 0:07:49.720 --> 0:07:53.600 well with an unrelated Chinese company who actually coincidentally filed 0:07:53.640 --> 0:07:55.720 for the x r O S name back in March. 0:07:56.760 --> 0:07:59.680 In real terms, this is a market that Meta dominates 0:07:59.800 --> 0:08:03.000 right to the A A VA headset. What's the timeline 0:08:03.400 --> 0:08:07.160 for Apple to bring this product to market. It's still 0:08:07.160 --> 0:08:10.720 a pretty small market, but technically yes, Meta is the 0:08:10.800 --> 0:08:15.040 dominant player there with their Quest headsets, Sony with their PSVR, 0:08:15.160 --> 0:08:18.000 their PlayStation VR. There's a new one coming U soon 0:08:18.040 --> 0:08:23.120 as well. They're a big player there. HTC Lenovo. Samsung 0:08:23.160 --> 0:08:25.440 has played in a little bit with partnerships with back 0:08:25.480 --> 0:08:28.400 in the day what was called Facebook. In terms of Apple, 0:08:29.960 --> 0:08:32.040 is the year of the Apple headset. It's going to 0:08:32.120 --> 0:08:34.920 be called probably the Reality one or the Reality Pro 0:08:35.000 --> 0:08:38.280 headset run x r os. It's going to have mixed 0:08:38.320 --> 0:08:44.400 reality versions of messages, of maps, of FaceTime, games, video watching, TV, 0:08:44.520 --> 0:08:48.280 plus you name it, live sports streaming in virtual reality 0:08:48.320 --> 0:08:50.720 in a three D like environment. This is going to 0:08:50.760 --> 0:08:53.640 be the hot product of This is really gonna be 0:08:53.679 --> 0:08:57.240 Apple's next big thing. It'll be introduced sometime around the 0:08:57.240 --> 0:08:59.640 middle of the year. Most likely. It's going to be 0:08:59.679 --> 0:09:02.079 quite a friendsive. Apple has been looking at price points 0:09:02.120 --> 0:09:04.959 between two and three thousand dollars, certainly going to be 0:09:05.000 --> 0:09:08.199 the most advanced mixed reality headset on the market today 0:09:08.520 --> 0:09:12.120 really going you know, full throttle on both of those technologies. 0:09:12.160 --> 0:09:14.160 It will have the best cameras on the market for 0:09:14.240 --> 0:09:16.960 a R, but it will also have the best displays 0:09:17.000 --> 0:09:19.880 on the market for VR in The real magic of 0:09:19.880 --> 0:09:21.600 this headset is how Apple is going to be able 0:09:21.640 --> 0:09:24.200 to blend the two in a way that you haven't 0:09:24.240 --> 0:09:28.280 seen Meta or others do so far. Alright, three year 0:09:28.360 --> 0:09:30.760 if the Apple Virtual Reality headset. You heard it here 0:09:30.800 --> 0:09:43.120 first bloom bogs Mark, German, thank you. Black Friday has 0:09:43.200 --> 0:09:47.160 been boom time for by Now Pay Later products. It's 0:09:47.160 --> 0:09:49.800 a financial product that lets you pay in installments, and 0:09:49.960 --> 0:09:55.440 its use has skyrocketed during the holiday shopping extravaganza. Adobe 0:09:55.720 --> 0:10:00.640 says that it's use climbed compared to pre a day, 0:10:00.720 --> 0:10:03.920 and one provider after Pay said it's use actually rose 0:10:05.559 --> 0:10:08.160 compared to the pre holiday season. But does this all 0:10:08.200 --> 0:10:11.280 mean we're actually setting ourselves up for a debt headache 0:10:11.360 --> 0:10:15.560 in the future. They do promise interest free payments only 0:10:15.720 --> 0:10:19.760 free if you follow the rules, so check the small print, 0:10:20.080 --> 0:10:22.920 because if when you're a longer term monthly by Now 0:10:22.960 --> 0:10:26.040 Pay Later plan, you could be up to thirty in 0:10:26.120 --> 0:10:28.800 terms of interest costs. Maybe if you do a late 0:10:28.840 --> 0:10:31.520 fee or have to reschedule a payment, that could cost 0:10:31.520 --> 0:10:35.560 you from one to ten dollars. Ago, roughly eleven of 0:10:35.640 --> 0:10:38.880 all borrowers using by Now pay Later fell behind schedule 0:10:38.960 --> 0:10:43.000 in their payments, and if you're years old, that lumber 0:10:43.040 --> 0:10:48.439 grows to almost h That was, of course, Bloomberg's Caroline 0:10:48.520 --> 0:10:51.360 hide there on by Now Pay Later trends in the 0:10:51.400 --> 0:10:54.800 holiday shopping season. We also took to Twitter to ask 0:10:54.840 --> 0:10:58.680 our audience about this, and while b MPL is gaining ground, 0:10:58.800 --> 0:11:01.520 it does seem, based on our phole, that the credit 0:11:01.559 --> 0:11:04.320 card is still king when it comes to the preferred 0:11:05.240 --> 0:11:07.800 means of spending. I want to bring in Claner CEO 0:11:08.200 --> 0:11:11.160 Sebastian Shimmy Atkovski for more on this. We're going to 0:11:11.200 --> 0:11:14.920 talk about your earnings. But first by Now pay Later. 0:11:15.440 --> 0:11:17.800 I bet you've got a pretty interesting take on the 0:11:17.920 --> 0:11:22.120 clan of you for buy now pay Later. Well sure, 0:11:22.160 --> 0:11:24.000 I mean, first of all, we actually think of ourselves 0:11:24.040 --> 0:11:27.920 as a payment network, a third party payment network, you know, 0:11:28.640 --> 0:11:31.200 VI sell master Card kind of thing, and so of 0:11:31.200 --> 0:11:34.720 our volumes debitum. We're obviously associated with credit, but just 0:11:35.000 --> 0:11:38.480 worth highlighting that fact. With that set, I do think 0:11:38.480 --> 0:11:42.240 by an alpulator is a better formulated credit product than 0:11:42.240 --> 0:11:44.560 a credit card, right, So it doesn't push you into revolving, 0:11:45.080 --> 0:11:47.600 it doesn't. It's not borrowing against all of your spending. 0:11:47.600 --> 0:11:50.640 It's only for single transactions, and it has a fixed 0:11:50.640 --> 0:11:53.760 installment period and it's no interest. Right. So we think 0:11:53.880 --> 0:11:57.120 genuinely speaking, if more consumers ten years from now have 0:11:57.360 --> 0:12:00.360 debit cards in use by alpulated for occasional purchases versus 0:12:00.360 --> 0:12:03.200 everyone having credit cards, we are going to see that's 0:12:03.240 --> 0:12:06.120 a better world. And losses on our portfolios are about 0:12:07.120 --> 0:12:09.760 below crey card industry standards, so I think that's also 0:12:09.840 --> 0:12:14.200 kind of some indications of this being in healthier form 0:12:14.200 --> 0:12:16.920 of credit, but it is still credit, right, let's just 0:12:16.920 --> 0:12:20.400 be here about her. So, Bacily, you just posted earnings 0:12:20.400 --> 0:12:24.000 third quarter earnings two one million dollar operating loss and 0:12:24.120 --> 0:12:29.280 improvement quarter on quarter but year on year, slightly worrying, 0:12:29.320 --> 0:12:31.880 and yet you still have this goal to push to profitability. 0:12:31.960 --> 0:12:35.640 How do you re ensure your reassure your investors that 0:12:35.679 --> 0:12:39.760 you are on that path to profitability? Well, actually, because 0:12:39.800 --> 0:12:42.720 exactly of that, right, So when um, you know last 0:12:42.800 --> 0:12:45.400 year Obviously, investor sentiment looked very differently than it does 0:12:45.440 --> 0:12:48.040 this year, and so everyone was asking us to lean 0:12:48.559 --> 0:12:51.280 entirely into the future and was rewarding us right and 0:12:51.480 --> 0:12:54.200 as much as looking back now, you know, if you 0:12:54.280 --> 0:12:57.400 think about at that point of time the investment trade, 0:12:57.440 --> 0:13:00.599 you grab it was consuming about two and dilution on 0:13:00.640 --> 0:13:03.680 an annual basis, so it wasn't crazy from that perspective. 0:13:03.920 --> 0:13:07.160 But obviously invest sentimis has change. People want you to 0:13:07.160 --> 0:13:09.240 focus on proftability and we have the benefit here Clona. 0:13:09.320 --> 0:13:11.600 We were profitable up until eight nineteen when we started 0:13:11.600 --> 0:13:14.160 investing heavily into the US market, so we know how 0:13:14.160 --> 0:13:17.520 to make money. Our European business makes about a billion 0:13:17.520 --> 0:13:21.560 dollars in gross profit annually UM. So we decided, you know, 0:13:21.720 --> 0:13:24.840 we had to take the top decisions. We actually started 0:13:25.240 --> 0:13:27.439 being a little bit more conservative on our underwriting already 0:13:27.440 --> 0:13:31.439 in January, and then increased that conservatism in May in 0:13:31.840 --> 0:13:36.320 combination with you know, reducing our investment into the long 0:13:36.440 --> 0:13:39.520 term future. And they presented a plan. So obviously a 0:13:39.600 --> 0:13:42.920 year year comparison right now isn't really relevant because the 0:13:43.000 --> 0:13:45.719 plan came into effect in May June, and so far 0:13:45.880 --> 0:13:50.200 already this quarter versus previous quarter. We reduced our are 0:13:50.240 --> 0:13:52.960 you know, quary lost by fort so you know our 0:13:53.000 --> 0:13:55.640 invest is looking at that feel confident, like, Okay. The 0:13:55.679 --> 0:13:57.960 ambition that we set out when we raised money in 0:13:58.000 --> 0:14:01.679 May June to reach profitability again somewhere a month by 0:14:01.720 --> 0:14:05.120 month basis after summer next year is entirely achievable and 0:14:05.160 --> 0:14:07.480 we're on target to to to be back at that. 0:14:08.240 --> 0:14:10.040 The US is an interesting one, isn't it. I think 0:14:10.040 --> 0:14:12.600 you hit thirty one million customers in the US in 0:14:12.679 --> 0:14:16.880 the third quarter, just gone, what did you learn about 0:14:16.960 --> 0:14:19.720 this market? And then what does the expansion look like 0:14:19.840 --> 0:14:23.760 going forward for you? Super super excited by the US. 0:14:23.800 --> 0:14:26.120 I mean in despite the fact that we've been a 0:14:26.160 --> 0:14:28.960 little bit you know, we've tied up credit underwriting due 0:14:28.960 --> 0:14:32.400 to the macro environment. We're also obviously in generally commerced 0:14:32.520 --> 0:14:36.240 right now, everyone is not really comparing apples and apples 0:14:36.320 --> 0:14:38.080 is all apple and bananas because you know, a year 0:14:38.080 --> 0:14:39.760 ago I was in San Francisco and there was nobody 0:14:39.800 --> 0:14:42.360 in the streets. You know, there was impossible to get 0:14:42.360 --> 0:14:45.720 a meeting because there was COVID restrictions all over the place. Right, 0:14:45.760 --> 0:14:48.320 So the comparisons are still not entirely there for you, commus, 0:14:48.360 --> 0:14:51.440 but we're seeing n growth you know, ye versus last 0:14:51.520 --> 0:14:54.560 year and seeing tremendous I mean, I just think more 0:14:54.560 --> 0:14:56.680 and more consumers in the US are dead tired of 0:14:56.720 --> 0:14:59.520 credit cards of you know, just go to Netflix and 0:14:59.560 --> 0:15:01.920 watch cred Card Explains, and you see all the dirty 0:15:01.960 --> 0:15:04.520 tactics that the industry has applied against the best interests 0:15:04.520 --> 0:15:06.840 of its customers. This is a healthy model. You're seeing 0:15:06.840 --> 0:15:08.600 that shift, right, and your seven eight percent in your 0:15:08.640 --> 0:15:11.000 Twitter poll is indicating that. But at the beginning, it's 0:15:11.000 --> 0:15:13.320 still the beginning. You gotta remember in the Nordics, where 0:15:13.320 --> 0:15:15.920 were active plan up processes more than half of all 0:15:16.080 --> 0:15:20.600 e commerce payments, right, So it tells you something on 0:15:20.680 --> 0:15:23.160 how effective and successful this mall can be once it's 0:15:23.360 --> 0:15:24.680 what It takes a little bit time to get there, 0:15:25.320 --> 0:15:27.720 sebasting very quickly. I know you stayed late for us 0:15:27.720 --> 0:15:33.360 out there in Sweden. Layoffs in this industry, layoffs for you, well, 0:15:33.640 --> 0:15:37.240 we we obviously unfortunately have to take that tough decision. 0:15:37.440 --> 0:15:39.160 We did it back in May. It was a little 0:15:39.200 --> 0:15:44.040 bit earlier than a lot of other companies. And and 0:15:44.360 --> 0:15:46.600 but because you know, I have the benefit of the noon. 0:15:46.640 --> 0:15:49.200 This for seventeen years. So I was part of Plana 0:15:49.280 --> 0:15:51.840 back in the financial press of seven and eight and 0:15:51.640 --> 0:15:54.760 and we at least try to. Our ambition was to 0:15:54.800 --> 0:15:57.120 take the tough decision that we unfortunately have to do, 0:15:57.200 --> 0:16:00.320 to the shift investor sentiment and make those changes. So 0:16:00.480 --> 0:16:02.400 we we hope that we've done what we what we 0:16:02.440 --> 0:16:06.120 need to done, and consider if the market Maclaconna environment 0:16:06.160 --> 0:16:07.800 stats the same, we think that we've done what we 0:16:07.800 --> 0:16:11.920 need to do. Okay, klan A CEO, Sebasti and Schimyatkovski, 0:16:11.960 --> 0:16:16.520 thank you. Now. Chip maker TSMC will now offer advanced 0:16:16.600 --> 0:16:20.040 four nanome to chips when it's new twelve billion dollar 0:16:20.120 --> 0:16:24.560 plant in Arizona opens in this after US customers like 0:16:24.680 --> 0:16:27.760 Apple pushed the company to do so. According to sources, 0:16:28.000 --> 0:16:32.480 Bloomberg's Debbie We reported that Bloomberg scoop Debbie, what will 0:16:32.520 --> 0:16:35.600 they be doing them when they open this plant? So, 0:16:35.880 --> 0:16:38.840 like you said, add the t SMC will well announced 0:16:38.840 --> 0:16:42.400 next Tuesday that they will start making an advanced for 0:16:42.600 --> 0:16:45.600 nelometer chips in Arizon now when the plan comes in 0:16:45.720 --> 0:16:49.280 light in two and this is an upgrade from their 0:16:49.280 --> 0:16:54.280 original plan. After our customers, including an Apple, uh A 0:16:54.440 --> 0:16:56.800 and d and and media urged them to make more 0:16:56.880 --> 0:17:01.120 advanced chips in America. So, uh this comes at the 0:17:01.160 --> 0:17:05.359 time that trade tensions and also a supply chain disruptions 0:17:05.359 --> 0:17:08.640 over the past care years have sort of pushed the 0:17:08.840 --> 0:17:13.160 balmuzation to help bring more chip manufacturing back to America 0:17:13.320 --> 0:17:16.680 and to make sure that the more advanced chips are 0:17:16.760 --> 0:17:21.040 made on US oil tabby. My understanding is t SMC 0:17:21.160 --> 0:17:23.840 are gonna be holding a pretty big party when they 0:17:24.160 --> 0:17:26.400 unveil this plan, and that the President will be going. 0:17:26.440 --> 0:17:30.480 What are the details? Yes, So President Biden and Secretary 0:17:30.520 --> 0:17:34.119 of Commerce Jena Ramondo will be attending the so called 0:17:34.320 --> 0:17:38.000 toy in ceremony next two day in Arizona. And this 0:17:38.119 --> 0:17:42.760 ceremony is to celebrate a key construction milestone or for 0:17:42.960 --> 0:17:46.520 t smc s first advanced plant in the US, and 0:17:46.600 --> 0:17:50.000 in attendance will also be uh ND CEO or Lisa 0:17:50.080 --> 0:17:54.399 su and and media chief Jensen Huang and Apple's chief 0:17:54.440 --> 0:17:58.240 executive Tim Cook. Uh is also a schedule to attend 0:17:58.280 --> 0:18:04.400 the event next Tuesday. For nanometer technology, let's dig into 0:18:04.400 --> 0:18:07.800 the technology. Why do we care if it's five nanometer 0:18:08.040 --> 0:18:10.440 or four nanime? So why is that important for t 0:18:10.640 --> 0:18:15.080 SMCS customers. Actually, it is also whatha important for the 0:18:15.440 --> 0:18:19.600 administration because with the fifty Building and Chips Act, the 0:18:19.680 --> 0:18:23.880 administration is hoping that the latest, the most cutting edge 0:18:24.480 --> 0:18:27.920 chips will be made in the US eventually. So right 0:18:27.960 --> 0:18:31.160 now the US is sort of like falling behind Asia 0:18:31.400 --> 0:18:34.800 one generational, two generations at least when it comes to 0:18:34.880 --> 0:18:39.720 a chip manifacting technologies. But the Bandministration in the hope 0:18:39.760 --> 0:18:43.280 to uh prevent future disruptions and to make sure that 0:18:43.320 --> 0:18:46.560 the America will stay ahead in this competition with China 0:18:46.760 --> 0:18:50.120 and the technology FUNCD So eventually, I mean, what kind 0:18:50.119 --> 0:18:52.560 of technology is that the chip makers will be able 0:18:52.600 --> 0:18:56.800 to offer us? Soil is so from uh most importance 0:18:56.840 --> 0:19:01.359 for the government, not and not just for American companies. 0:19:02.200 --> 0:19:06.520 This whole story is about expanding manufacturing capacity in the 0:19:06.600 --> 0:19:09.399 United States right on shoring. Who are some of the 0:19:09.400 --> 0:19:12.760 biggest names in the world of semiconductors that rely on 0:19:12.840 --> 0:19:17.280 t SMC. So companies that rely on t SMC in 0:19:17.320 --> 0:19:21.760 the US include the Apple and d N Media and 0:19:21.800 --> 0:19:26.240 also a Qualcom and Alison Timer Intel Whila it makes 0:19:26.280 --> 0:19:29.000 its own chips. Also, what relies on our t SMC 0:19:29.200 --> 0:19:32.680 on some of its production, so t s m C 0:19:32.800 --> 0:19:37.400 actually will also announced next Tuesday that it is committed 0:19:37.520 --> 0:19:41.240 to build a second plant in Arizona to make even 0:19:41.280 --> 0:19:47.200 more advanced three nelometer chips to help American companies. Okay, 0:19:47.200 --> 0:19:58.800 Bloomberg's deady, we're great reporting, Thank you very much. Time 0:19:58.840 --> 0:20:02.320 now for talking tech layoffs in the tech industry still 0:20:02.359 --> 0:20:05.520 in the headline. Serious XM is the latest to announce 0:20:05.600 --> 0:20:09.159 job cuts in response to faltering revenue growth. Sales at 0:20:09.200 --> 0:20:11.800 Serious grew three point seven in the third quarter, but 0:20:11.960 --> 0:20:15.720 analysts now forecast more modest growth, just one percent in 0:20:15.720 --> 0:20:19.520 the current period. All this comes as consultancy firm Challenger 0:20:19.600 --> 0:20:22.800 Gray and Christmas says. While job cuts are announced across 0:20:22.840 --> 0:20:25.920 the US, the tech sector was hit particularly hard. Of 0:20:26.000 --> 0:20:28.800 the nearly seventy seven thousand jobs that announced to be 0:20:28.840 --> 0:20:32.400 cut in November, around fifty three thousand came from tech 0:20:32.520 --> 0:20:36.680 no surprise therefore, the West Coast was hit especially hard. 0:20:36.920 --> 0:20:38.800 But that's not just in the US. This is a 0:20:38.840 --> 0:20:43.159 global story. Over in Ireland, for instance, tech companies ranging 0:20:43.200 --> 0:20:47.920 from Twitter, Intel, Stripe or Meta have all been acting jobs. 0:20:47.920 --> 0:20:50.920 Such layoffs, of course, have raised concerns with the European 0:20:50.920 --> 0:20:54.760 Commission about tech companies and what they plan to do next, 0:20:55.000 --> 0:20:58.720 particularly those that are caught up in the narrative around 0:20:59.040 --> 0:21:03.400 privacy rule. Definitely one to watch. Go forward now stick 0:21:03.400 --> 0:21:05.159 with us. Coming up on the show, we're going to 0:21:05.240 --> 0:21:10.920 speak to the CFO of Visa. Important spending, spending, spending, 0:21:10.960 --> 0:21:13.520 credit cards. This is not one that you're going to 0:21:13.600 --> 0:21:16.480 want to miss. Why holiday season and we want to 0:21:16.600 --> 0:21:19.080 lend into what's going on that's fast and probably the 0:21:19.160 --> 0:21:59.280 Visa CFO. Coming up next, this is Bloomberg Welcome back 0:21:59.280 --> 0:22:02.480 to Bloomberg Chnology. I'm at loveloaw in San Francisco. Now. 0:22:02.600 --> 0:22:05.679 Online spending is up nine percent this year compared to 0:22:06.440 --> 0:22:09.560 one and Cyber Monday's record eleven point three billion dollars 0:22:09.800 --> 0:22:14.480 in sales per Adobe show signs the consumer remains resilient 0:22:14.560 --> 0:22:17.280 in an economic downturn. I've got just the guests for this. 0:22:17.359 --> 0:22:20.840 Let's discussed with Visa's chief financial officer of Vascent, probably 0:22:20.920 --> 0:22:22.720 Vass and thank you for coming on the program. It's 0:22:22.720 --> 0:22:26.439 good to see you. Your assessment. Where do things stand? 0:22:26.560 --> 0:22:29.719 You know we're entering kind of the backstages of this 0:22:29.760 --> 0:22:37.600 holiday shopping period. What signs of visa seeing about consumer activity. Thanks. Yeah, Yes, 0:22:37.640 --> 0:22:40.480 you use the word resilient, and I'd say that's the 0:22:41.119 --> 0:22:45.119 that's probably the best adjective to use to describe the 0:22:45.160 --> 0:22:47.600 state of the U. S consumer. You know, you've seen 0:22:47.680 --> 0:22:51.840 consumer spending state remarkably stable all year. You know, we 0:22:51.960 --> 0:22:55.280 like to compare things to pandemic to get a clean look, 0:22:55.600 --> 0:22:59.760 and it's amazing how stable spending. Husband, we're about forty 0:22:59.800 --> 0:23:04.240 five forty ahead almost on a day by day, week 0:23:04.280 --> 0:23:07.080 by week basis, And in fact, we just released numbers 0:23:07.080 --> 0:23:09.440 through the twenty one November, and in the first three 0:23:09.480 --> 0:23:12.680 weeks in November, just leading into the holiday period, we 0:23:12.680 --> 0:23:18.840 were up roughly that from up about nine over last year, 0:23:19.560 --> 0:23:23.800 and then holiday week twenty one to seven was roughly 0:23:23.840 --> 0:23:27.400 in line on a ear over year basis, also high 0:23:27.440 --> 0:23:31.679 single digits. We can't yet compared to because Thanksgiving was 0:23:32.200 --> 0:23:37.680 later in so remarkable stability, remarkable resilience. I think that's 0:23:37.680 --> 0:23:42.000 the best way to describe the US consumer right now. 0:23:42.040 --> 0:23:45.880 We were a bit concerned with credit. We're talking out 0:23:45.920 --> 0:23:48.159 of course, about the the impact of higher rates on 0:23:48.240 --> 0:23:51.040 the consumer, and we're also talking a lot about buy now, 0:23:51.119 --> 0:23:54.159 pay later. Do you have any sense of the split 0:23:54.240 --> 0:23:58.399