1 00:00:02,240 --> 00:00:05,520 Speaker 1: From the heart of where innovation, money and power Colli 2 00:00:06,320 --> 00:00:10,880 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,920 --> 00:00:27,080 Speaker 1: Emily jay I. Remember we chang in San Francisco and 4 00:00:27,080 --> 00:00:29,200 Speaker 1: this is Bloomberg Technology coming up for the next hour. 5 00:00:29,320 --> 00:00:32,720 Speaker 1: Alphabet's earnings mostly in line with estimates a sigh of 6 00:00:32,760 --> 00:00:35,440 Speaker 1: relief for those concerned about the digital ad market. But 7 00:00:35,600 --> 00:00:38,360 Speaker 1: the same can't be said from Microsoft, which posted the 8 00:00:38,400 --> 00:00:44,920 Speaker 1: slowest sales growth. Since we will look into these mixed results. Plus, 9 00:00:44,960 --> 00:00:47,640 Speaker 1: the fifty two billion dollar Chips Act is one step 10 00:00:47,680 --> 00:00:51,960 Speaker 1: closer to President Biden's desk. This means US tech companies 11 00:00:52,040 --> 00:00:55,360 Speaker 1: won't have to rely so much on Taiwan, where how 12 00:00:55,400 --> 00:00:59,120 Speaker 1: speaker Nancy Pelosi may visit next month Chinese government not 13 00:00:59,200 --> 00:01:02,000 Speaker 1: happy about it. Will have the latest from Capitol Hill 14 00:01:03,360 --> 00:01:06,959 Speaker 1: and most coordinate for cryptocurrencies. The SEC is investigating coin 15 00:01:07,000 --> 00:01:13,800 Speaker 1: based over possible trading of unregistered securities, accusing a former 16 00:01:13,840 --> 00:01:17,039 Speaker 1: coin based manager of insider trading just last week. We 17 00:01:17,120 --> 00:01:19,440 Speaker 1: will have all the details. We'll get to all of 18 00:01:19,480 --> 00:01:20,679 Speaker 1: that in a moment, but first I want to get 19 00:01:20,680 --> 00:01:23,440 Speaker 1: a look at earnings. Bringing Dan Newman, analysts for the 20 00:01:23,520 --> 00:01:26,160 Speaker 1: research firm future Um all right, Dan, what are your 21 00:01:26,200 --> 00:01:30,600 Speaker 1: big picture takeaways? Microsoft doesn't look good. They highlighted the 22 00:01:30,640 --> 00:01:34,000 Speaker 1: strong dollar, which which Google highlighted as well, though their 23 00:01:34,080 --> 00:01:38,760 Speaker 1: results looking somewhat better. Yeah, I think there were narrow 24 00:01:38,800 --> 00:01:41,760 Speaker 1: misses across the board, Emily. I think people have been 25 00:01:41,840 --> 00:01:43,560 Speaker 1: kind of waiting to see when do we finally hit 26 00:01:43,600 --> 00:01:47,160 Speaker 1: that inflection point where the beats stop. You know, the 27 00:01:47,200 --> 00:01:49,720 Speaker 1: market has been selling like these companies haven't been performing 28 00:01:49,720 --> 00:01:51,840 Speaker 1: for the past few quarters, and actually they have been 29 00:01:51,840 --> 00:01:54,520 Speaker 1: performing quite well. Now we've got a number of factors. 30 00:01:54,560 --> 00:01:57,280 Speaker 1: You've got effects, You've got the Ukraine, Russia, you've got 31 00:01:57,320 --> 00:02:00,400 Speaker 1: shut downs in China, and all these were impacting Microsoft numbers. 32 00:02:00,440 --> 00:02:02,920 Speaker 1: But if you look, they were pretty narrow misses on 33 00:02:03,040 --> 00:02:05,360 Speaker 1: both top and bottom line. I think Microsoft said there's 34 00:02:05,360 --> 00:02:08,680 Speaker 1: something like a billion dollars tied to the shutdowns that 35 00:02:08,760 --> 00:02:11,800 Speaker 1: I mentioned in China, to the f X impact as 36 00:02:11,800 --> 00:02:14,400 Speaker 1: well as the Ukraine Russia, and that's actually about six 37 00:02:14,440 --> 00:02:17,600 Speaker 1: cents which would have taken them to hitting that EPs target. 38 00:02:18,040 --> 00:02:21,560 Speaker 1: The Cloud number is still good, it's it's decelerating little 39 00:02:21,560 --> 00:02:24,959 Speaker 1: bit um and you saw a dynamics through the RP, 40 00:02:25,600 --> 00:02:27,960 Speaker 1: which is something I've been looking close as at enterprise software. 41 00:02:27,960 --> 00:02:30,160 Speaker 1: Barring that number stayed really strong, but some of the 42 00:02:30,160 --> 00:02:33,240 Speaker 1: other areas, again, it just seemed like narrow misses everywhere, 43 00:02:33,320 --> 00:02:36,240 Speaker 1: Emily and so that was Microsoft, And of course what 44 00:02:36,280 --> 00:02:38,880 Speaker 1: you mentioned with with Google is the ad market seemed 45 00:02:38,880 --> 00:02:42,120 Speaker 1: to be stronger with Alphabet than people had expected. It 46 00:02:42,200 --> 00:02:45,560 Speaker 1: has slowed, But the question is do people outside of 47 00:02:45,680 --> 00:02:47,600 Speaker 1: us who are watching this every day realize we're in 48 00:02:47,600 --> 00:02:49,919 Speaker 1: a recession. If you saw Prime Day, if you look 49 00:02:49,919 --> 00:02:51,919 Speaker 1: at the advertising spend, it looks like people are still 50 00:02:51,919 --> 00:02:55,799 Speaker 1: shopping shopping. Indeed, I just got off the phone with 51 00:02:55,840 --> 00:02:58,760 Speaker 1: Alphabet CFO with poor At and she used that word 52 00:02:58,840 --> 00:03:02,280 Speaker 1: uncertainty a number of times. I'm expecting to get even 53 00:03:02,320 --> 00:03:05,240 Speaker 1: more color on the earnings call with so In Darperty 54 00:03:05,240 --> 00:03:06,959 Speaker 1: about just what kind of uncertainty. But here she says, 55 00:03:07,040 --> 00:03:09,799 Speaker 1: uncertainty is the best way to characterize what we're seeing. 56 00:03:10,120 --> 00:03:12,239 Speaker 1: But the reality of the data is that it's complicated. 57 00:03:12,240 --> 00:03:16,000 Speaker 1: The results reflect the lapping of significant growth last year 58 00:03:16,000 --> 00:03:19,000 Speaker 1: plus uncertainty in the global economic environment. And what she 59 00:03:19,080 --> 00:03:21,519 Speaker 1: talked about was that there are a variety of factors 60 00:03:21,560 --> 00:03:24,119 Speaker 1: at play here, but it's really challenging to disaggregate them. 61 00:03:24,120 --> 00:03:26,959 Speaker 1: So you know, they're continuing to use this word uncertainty. 62 00:03:27,160 --> 00:03:30,120 Speaker 1: What do you take away from that, Well, it's the 63 00:03:30,160 --> 00:03:31,960 Speaker 1: reason we're having a hard time deciding whether or not 64 00:03:31,960 --> 00:03:33,720 Speaker 1: we're in recession right now. You see some of the 65 00:03:33,800 --> 00:03:37,200 Speaker 1: numbers indicate that there's still strength, there's some growth across tech, 66 00:03:37,200 --> 00:03:39,000 Speaker 1: because again, all these numbers are growth on a youear 67 00:03:39,000 --> 00:03:41,560 Speaker 1: over your basis. So we thought at all this digital 68 00:03:41,640 --> 00:03:45,080 Speaker 1: transformation acceleration, and these these numbers are better now. They're 69 00:03:45,120 --> 00:03:49,080 Speaker 1: decelerated growth for both Google and for Microsoft, but they're 70 00:03:49,240 --> 00:03:51,000 Speaker 1: up on a year over your basis. So people are 71 00:03:51,000 --> 00:03:54,200 Speaker 1: spending more money on technology, more money on advertising than 72 00:03:54,240 --> 00:03:56,920 Speaker 1: a year ago when we thought the market was growing 73 00:03:56,960 --> 00:04:00,000 Speaker 1: at an explosive rate. So now we're entering this slowdown period. 74 00:04:00,000 --> 00:04:02,080 Speaker 1: If you've got inflation, we've got an f X, we've 75 00:04:02,120 --> 00:04:04,400 Speaker 1: got interest rate hikes. And I think some of the 76 00:04:04,400 --> 00:04:07,280 Speaker 1: reason that there's some enthusiasm about these misses as we've 77 00:04:07,280 --> 00:04:09,480 Speaker 1: been waiting for this, we've been waiting to see some 78 00:04:09,560 --> 00:04:11,880 Speaker 1: of this FED policy, some of the monetary policy that's 79 00:04:11,880 --> 00:04:15,400 Speaker 1: coming into place. Actually uh, having companies start to slow down, 80 00:04:15,440 --> 00:04:17,640 Speaker 1: having guided start to slow down and say, look, some 81 00:04:17,720 --> 00:04:20,400 Speaker 1: of what's happening is working. The demand is slowing, but 82 00:04:20,480 --> 00:04:22,920 Speaker 1: I still lean that enterprise tech, I still lean that 83 00:04:23,000 --> 00:04:25,839 Speaker 1: e commerce and platforms will be remarkably strong because we've 84 00:04:25,839 --> 00:04:29,200 Speaker 1: become hyper dependent on them throughout the pandemic. I don't 85 00:04:29,200 --> 00:04:31,200 Speaker 1: see that changing, and companies that are gonna want to 86 00:04:31,240 --> 00:04:34,600 Speaker 1: wade their way through this slow in the economy are 87 00:04:34,600 --> 00:04:37,200 Speaker 1: going to be looking to technology to help automate, to 88 00:04:37,279 --> 00:04:40,320 Speaker 1: invest in AI and utilize cloud technologies to actually scale 89 00:04:40,320 --> 00:04:43,840 Speaker 1: their businesses with less big overhead resources and of course 90 00:04:43,920 --> 00:04:46,320 Speaker 1: slowed hiring, which means technology is gonna have to take 91 00:04:46,360 --> 00:04:48,359 Speaker 1: the runt of the way now. When it came to 92 00:04:48,360 --> 00:04:52,599 Speaker 1: advertising specifically, she talked about the growth driven by travel 93 00:04:53,040 --> 00:04:55,920 Speaker 1: and retail, which continued to be strong. Makes sense, of course, 94 00:04:56,000 --> 00:04:59,200 Speaker 1: as we are coming out hopefully, hopefully, hopefully of a pandemic, 95 00:04:59,480 --> 00:05:02,560 Speaker 1: But she did talk about the pull back and she 96 00:05:02,680 --> 00:05:06,120 Speaker 1: used that word pulled back by some advertisers, reflecting uncertainty 97 00:05:06,120 --> 00:05:08,240 Speaker 1: about a number of factors they view as again, as 98 00:05:08,279 --> 00:05:11,680 Speaker 1: I said, challenging to disaggregate. What do you make of 99 00:05:11,760 --> 00:05:14,360 Speaker 1: her use of that word pulled back because everybody is wondering, 100 00:05:14,400 --> 00:05:16,200 Speaker 1: is what we saw a snap in Twitter going to 101 00:05:16,240 --> 00:05:19,800 Speaker 1: impact Google as well. Is Google somehow um immune to 102 00:05:19,839 --> 00:05:22,880 Speaker 1: this given that it is such a broad based business 103 00:05:23,120 --> 00:05:28,080 Speaker 1: or not. Well, the numbers indicate that there's clearly prioritization, 104 00:05:28,440 --> 00:05:32,120 Speaker 1: and so Google seems to be above the fold. Whereas 105 00:05:32,160 --> 00:05:34,240 Speaker 1: we saw what happened to Snap and what's happened to 106 00:05:34,279 --> 00:05:36,560 Speaker 1: Met over the past few quarters, where there has been 107 00:05:36,600 --> 00:05:39,200 Speaker 1: more pulled back, and of course ruthport I was saying, 108 00:05:39,240 --> 00:05:42,360 Speaker 1: they are seeing some pullback too, but that's more deceleration 109 00:05:42,400 --> 00:05:47,080 Speaker 1: than overall slowing of growth altogether. Uh, the indicators here 110 00:05:46,960 --> 00:05:49,000 Speaker 1: are that companies that are going to go online still 111 00:05:49,040 --> 00:05:51,880 Speaker 1: believe Google is their best bet, if not, you know, 112 00:05:52,000 --> 00:05:53,800 Speaker 1: one of their best bets, and that's why we're continuing 113 00:05:53,839 --> 00:05:56,480 Speaker 1: to see the spend there. I do think some companies 114 00:05:56,480 --> 00:05:58,680 Speaker 1: that understand what's going on are starting to look at 115 00:05:58,839 --> 00:06:02,599 Speaker 1: at you know, whether that slowing hiring, slowing addicts expense. 116 00:06:03,000 --> 00:06:05,080 Speaker 1: We're seeing that across the board. We've heard the announcements 117 00:06:05,120 --> 00:06:07,160 Speaker 1: from companies that are going to do less hiring, that 118 00:06:07,200 --> 00:06:09,600 Speaker 1: are going to spend less on advertising, and that's part 119 00:06:09,640 --> 00:06:12,440 Speaker 1: of this period of economic uncertainty and slow down. So 120 00:06:12,560 --> 00:06:15,400 Speaker 1: none of this is surprising. I think smart companies understand 121 00:06:15,440 --> 00:06:19,000 Speaker 1: you cannot entirely save your way to growth in the future, 122 00:06:19,000 --> 00:06:21,000 Speaker 1: but you might want to slow down temporarily until we 123 00:06:21,040 --> 00:06:23,440 Speaker 1: get a good handle of what's going on here. And 124 00:06:23,720 --> 00:06:26,520 Speaker 1: there are so many factors, so much inconsistency in the data, 125 00:06:26,640 --> 00:06:28,960 Speaker 1: and that's why, like I said, we're having a hard 126 00:06:28,960 --> 00:06:31,719 Speaker 1: time making final decisions. The Feds having hard time, The 127 00:06:31,800 --> 00:06:34,320 Speaker 1: markets are having hard time because we're seeing some numbers 128 00:06:34,320 --> 00:06:37,280 Speaker 1: look good and some numbers look incredibly bad or at 129 00:06:37,320 --> 00:06:39,800 Speaker 1: risk right now, right and maybe even Google's having a 130 00:06:39,800 --> 00:06:41,920 Speaker 1: hard time, and clearly Microsoft is having a hard time. 131 00:06:41,960 --> 00:06:43,960 Speaker 1: I did ask her, by the way, about competition from 132 00:06:44,000 --> 00:06:48,360 Speaker 1: TikTok in particular, and they doubled down on clearly people 133 00:06:48,480 --> 00:06:51,760 Speaker 1: want to consume short form videos. So she talked about 134 00:06:51,800 --> 00:06:54,960 Speaker 1: YouTube shorts, and she talked about focusing on engagement and 135 00:06:55,000 --> 00:06:58,039 Speaker 1: the experience and and the hope is that monetization will 136 00:06:58,120 --> 00:07:01,279 Speaker 1: come later. Okay, Dan Newman, if you sure, thanks for 137 00:07:01,360 --> 00:07:03,880 Speaker 1: helping us to unpack a lot of very difficult and 138 00:07:04,480 --> 00:07:09,880 Speaker 1: challenging the circumstances to separate out appreciate it well. Twitter 139 00:07:10,000 --> 00:07:12,880 Speaker 1: Neolon Musk are fighting about the start date for their 140 00:07:12,880 --> 00:07:16,560 Speaker 1: Delaware trial. Twitter wants to begin October ten, Musque asking 141 00:07:16,640 --> 00:07:20,320 Speaker 1: for October seventeen. A lawyer for Musk says the social 142 00:07:20,360 --> 00:07:23,960 Speaker 1: media platform isn't producing the requested documents in a timely way. 143 00:07:24,240 --> 00:07:27,640 Speaker 1: He also said Twitter is resisting turning over raw data, 144 00:07:27,800 --> 00:07:31,400 Speaker 1: causing a quote log jam in the production of evidence. 145 00:07:31,560 --> 00:07:35,880 Speaker 1: The defense needs coming up the Senate to vote on 146 00:07:35,920 --> 00:07:38,280 Speaker 1: the All Important Chips Act, as Ali Baba pushes to 147 00:07:38,320 --> 00:07:41,679 Speaker 1: list in Hong Kong amid rising tensions between the US 148 00:07:41,800 --> 00:07:44,800 Speaker 1: and China. The latest from d C. Next, this is 149 00:07:44,800 --> 00:07:57,920 Speaker 1: Bloomberg today the Senate advance of fifty two billion dollar 150 00:07:58,040 --> 00:08:00,200 Speaker 1: bill that would bolster the U S semi can after 151 00:08:00,280 --> 00:08:03,040 Speaker 1: industry setting it up for a final vote. This comes 152 00:08:03,040 --> 00:08:06,040 Speaker 1: as how Speaker Nancy Pelosi seems dead said on plans 153 00:08:06,080 --> 00:08:09,640 Speaker 1: to visit Taiwan next month. Beijing as warned Pelosi not 154 00:08:09,720 --> 00:08:12,200 Speaker 1: to come. The Chinese government, of course, is long considered 155 00:08:12,240 --> 00:08:16,200 Speaker 1: Taiwan to be part of its territory. It's also the 156 00:08:16,280 --> 00:08:19,600 Speaker 1: chip capital of the world. Bloomberg Government's Emily Wilkins has 157 00:08:19,600 --> 00:08:22,960 Speaker 1: the details from Capitol Hill. So a lot going on here, 158 00:08:23,000 --> 00:08:25,600 Speaker 1: as always in the U S. China relationship. Emily, let's 159 00:08:25,600 --> 00:08:28,920 Speaker 1: start with the Chips act. Just how close are we? So? 160 00:08:29,160 --> 00:08:32,199 Speaker 1: Right now, the Senate has cleared two procedural votes, which 161 00:08:32,200 --> 00:08:34,360 Speaker 1: means that all they have to do is now actually 162 00:08:34,400 --> 00:08:38,000 Speaker 1: pass the legislation. They're looking at doing that tomorrow. Remember, 163 00:08:38,080 --> 00:08:40,400 Speaker 1: there's a lot of Senate rules about timing and stuff 164 00:08:40,440 --> 00:08:43,040 Speaker 1: that prevents them from doing it right now, But at 165 00:08:43,080 --> 00:08:45,679 Speaker 1: this point, it absolutely seems like they have the votes. 166 00:08:45,760 --> 00:08:48,440 Speaker 1: We've seen a lot of bipartisan support for this one, 167 00:08:48,679 --> 00:08:52,400 Speaker 1: a number of Republicans joining Democrats on these votes. In fact, 168 00:08:52,520 --> 00:08:54,440 Speaker 1: even though we do have a couple of Democrats who 169 00:08:54,480 --> 00:08:57,920 Speaker 1: aren't here right now because they've tested positive for COVID nineteen, 170 00:08:58,240 --> 00:08:59,880 Speaker 1: it still seems like this is going to have this 171 00:09:00,000 --> 00:09:02,160 Speaker 1: support to clear the Senate. From there will move on 172 00:09:02,200 --> 00:09:04,480 Speaker 1: to the House, where the House leaders have promised a 173 00:09:04,600 --> 00:09:07,120 Speaker 1: very quick vote on This really shows that this is 174 00:09:07,120 --> 00:09:09,760 Speaker 1: something that folks want to get done, especially before the 175 00:09:09,760 --> 00:09:12,440 Speaker 1: House is scheduled to leave town on Friday for a 176 00:09:12,440 --> 00:09:16,800 Speaker 1: long recess. Difficult to isolate, but how will this particular 177 00:09:16,840 --> 00:09:21,720 Speaker 1: bill impact US China tentions? I mean, to a certain extent. 178 00:09:21,840 --> 00:09:24,840 Speaker 1: This bill initially start out as something that was supposed 179 00:09:24,840 --> 00:09:28,360 Speaker 1: to really bolster US competitiveness with China, and it will 180 00:09:28,360 --> 00:09:31,080 Speaker 1: still do that in some regards making sure that the 181 00:09:31,160 --> 00:09:34,400 Speaker 1: US is able to produce semi conductors, boasting the National 182 00:09:34,440 --> 00:09:38,360 Speaker 1: Science Foundation, But it's not really the strong anti China 183 00:09:38,400 --> 00:09:40,640 Speaker 1: bill that it was at the beginning. Most provisions have 184 00:09:40,720 --> 00:09:43,520 Speaker 1: gotten stripped out in the interest of time and getting 185 00:09:43,600 --> 00:09:46,480 Speaker 1: something done quickly. There really aren't that many days left 186 00:09:46,480 --> 00:09:50,559 Speaker 1: for lawmakers to do work before the November midterm elections, 187 00:09:50,640 --> 00:09:53,200 Speaker 1: and so honestly, this is probably a more China friendly 188 00:09:53,200 --> 00:09:55,559 Speaker 1: bill than what we initially began to see and to 189 00:09:55,679 --> 00:09:58,600 Speaker 1: start out with. But that doesn't mean that President Biden 190 00:09:58,679 --> 00:10:00,199 Speaker 1: is going to have an easy fall with as a 191 00:10:00,360 --> 00:10:03,520 Speaker 1: chi Jinping. Biden said he'd be speaking with the Chinese 192 00:10:03,520 --> 00:10:06,439 Speaker 1: president within the next ten days, and of course, something 193 00:10:06,440 --> 00:10:08,559 Speaker 1: that's going to be coming up during that call is 194 00:10:08,600 --> 00:10:13,360 Speaker 1: how Speaker Nancy Pelosi's proposed trip to Taiwan. On this 195 00:10:13,400 --> 00:10:15,720 Speaker 1: proposed trip to Taiwan, this would be the first of 196 00:10:15,760 --> 00:10:18,960 Speaker 1: its kind in twenty five years. We've heard these warnings 197 00:10:19,000 --> 00:10:22,160 Speaker 1: from the Chinese government do not come, but it seems 198 00:10:22,200 --> 00:10:24,720 Speaker 1: like this trip is going to happen. What do you 199 00:10:24,800 --> 00:10:27,400 Speaker 1: make of this and how this trip will impact the 200 00:10:27,520 --> 00:10:30,920 Speaker 1: U S China relationship. So one notable thing is that 201 00:10:31,000 --> 00:10:34,040 Speaker 1: President Buden was actually a little bit hesitant on Pelosi 202 00:10:34,120 --> 00:10:36,160 Speaker 1: going on this trip. But you have heard a lot 203 00:10:36,160 --> 00:10:39,640 Speaker 1: of lawmakers from her own party and from Republicans saying 204 00:10:39,679 --> 00:10:42,600 Speaker 1: that Pelosi shouldn't back down to China, shouldn't back down 205 00:10:42,640 --> 00:10:46,160 Speaker 1: to Beijing's concerns, and should absolutely go. You heard a 206 00:10:46,160 --> 00:10:49,920 Speaker 1: Republican Senate Minority Leader, Mitch McConnell say today that Pelosi 207 00:10:50,000 --> 00:10:52,440 Speaker 1: would be handing China a victory if she was to 208 00:10:52,480 --> 00:10:55,840 Speaker 1: cancel her trip now, and you've heard similar support from 209 00:10:55,840 --> 00:10:59,520 Speaker 1: other Democrats and Republicans. So it seems like at this point, 210 00:10:59,720 --> 00:11:02,640 Speaker 1: even though the executive branch is a little bit timid 211 00:11:02,720 --> 00:11:05,040 Speaker 1: about what the fallout from this trip could be, a 212 00:11:05,080 --> 00:11:08,319 Speaker 1: lot of Pelosi's colleagues here in Congress are absolutely supporting 213 00:11:08,679 --> 00:11:12,719 Speaker 1: uh this planned trip all right. Emily Wilkins for us 214 00:11:12,920 --> 00:11:16,000 Speaker 1: at the Capital, Emily, thank you. Meantime, another twist in 215 00:11:16,040 --> 00:11:19,320 Speaker 1: this story, Ali Baba will seek a primary listing in 216 00:11:19,480 --> 00:11:21,880 Speaker 1: Hong Kong, paving the way for investors in China to 217 00:11:22,040 --> 00:11:25,520 Speaker 1: directly buy shares of the company's most prominent e commerce 218 00:11:25,520 --> 00:11:28,199 Speaker 1: company for the first time. This will also in Trench 219 00:11:28,240 --> 00:11:31,840 Speaker 1: Hong Kong as an alternative to US markets. Here to 220 00:11:31,840 --> 00:11:36,040 Speaker 1: discuss global lexi TS Director of Research, Pedro Palindroni. Pedro, 221 00:11:36,160 --> 00:11:39,040 Speaker 1: I remember interviewing Jack mob the CEO of Ali Baba 222 00:11:39,080 --> 00:11:41,920 Speaker 1: at the time, on the floor of the New York 223 00:11:41,920 --> 00:11:46,280 Speaker 1: Stock Exchange, And here we are years later, Ali Baba 224 00:11:46,880 --> 00:11:52,680 Speaker 1: proposing this secondary listing in Hong Kong. Why now, yeah, 225 00:11:52,760 --> 00:11:54,880 Speaker 1: well thanks for having me, Emily. You know, if we 226 00:11:54,920 --> 00:11:58,079 Speaker 1: step back for a second, Alibaba is essentially facing two 227 00:11:58,160 --> 00:12:02,360 Speaker 1: dimensions of regulatory rest right. First, they're getting fine or 228 00:12:02,440 --> 00:12:07,000 Speaker 1: punished by domestic regulators for monopolistic practices or even creating 229 00:12:07,120 --> 00:12:10,280 Speaker 1: national security risk given the large amount of data that 230 00:12:10,360 --> 00:12:13,480 Speaker 1: they have. Right on the second hand, there is a 231 00:12:13,559 --> 00:12:16,040 Speaker 1: risk of getting the listed from the United States sometime 232 00:12:16,040 --> 00:12:20,600 Speaker 1: in four because of these Holding Foreign Companies Accountable Act 233 00:12:21,080 --> 00:12:24,600 Speaker 1: and the fact that it's essentially threadning to exclude Chinese 234 00:12:24,640 --> 00:12:29,800 Speaker 1: companies of US exchanges unless they comply with clear auditing 235 00:12:29,920 --> 00:12:32,160 Speaker 1: rules that apply to all the US listed companies. And 236 00:12:32,160 --> 00:12:36,040 Speaker 1: I think this dual listing move is first and foremost 237 00:12:36,720 --> 00:12:39,840 Speaker 1: a hedge against the the listing risk, but it can 238 00:12:39,880 --> 00:12:43,000 Speaker 1: also help a little bit with the domestic regulatory risk. Right. So, 239 00:12:43,320 --> 00:12:46,479 Speaker 1: on the the list in front, we've seen some willingness 240 00:12:46,520 --> 00:12:50,199 Speaker 1: from both China and the United States to resolve the conflict. Actually, 241 00:12:50,440 --> 00:12:53,640 Speaker 1: just a few months ago, the Vice Premier you He 242 00:12:54,120 --> 00:12:57,880 Speaker 1: gave a speech where he expressed Chinese willingness to cooperate 243 00:12:57,920 --> 00:13:01,160 Speaker 1: on this issue. However, the reality is that a smooth 244 00:13:01,200 --> 00:13:04,800 Speaker 1: resolution is not a foregone conclusion just yet, and the 245 00:13:04,880 --> 00:13:07,640 Speaker 1: risk of Ali Baba and the four then matter other 246 00:13:07,800 --> 00:13:10,840 Speaker 1: Chinese companies of getting the listed of US exchanges in 247 00:13:12,040 --> 00:13:15,600 Speaker 1: is still real. On the domestic regulatory front, I think 248 00:13:15,640 --> 00:13:20,040 Speaker 1: that we've seen some positive signs lately regarding the eascene 249 00:13:20,080 --> 00:13:22,680 Speaker 1: of the tech crackdown, and I think that by making 250 00:13:22,720 --> 00:13:26,320 Speaker 1: this move, Ali Baba can probably win some positive favor 251 00:13:26,440 --> 00:13:30,440 Speaker 1: coming up from Chinese regulators. So, you know, China clearly 252 00:13:30,520 --> 00:13:33,960 Speaker 1: is hoping to preserve and build up Hong Kong status 253 00:13:34,000 --> 00:13:38,280 Speaker 1: as a global financial hub. In having mainland take giants 254 00:13:38,320 --> 00:13:41,680 Speaker 1: fallback onto the Hong Kong stat change is clearly in 255 00:13:41,720 --> 00:13:45,160 Speaker 1: line with those goals. What do you think this means 256 00:13:45,160 --> 00:13:47,440 Speaker 1: for other US listed Chinese companies? I mean, are we 257 00:13:47,559 --> 00:13:52,680 Speaker 1: going to see a slew of realistics? Yeah, this is 258 00:13:52,679 --> 00:13:56,400 Speaker 1: probably going to encourage the roughly two hundred U s 259 00:13:56,440 --> 00:13:59,720 Speaker 1: traded Chinese A d R companies to to follow suit, 260 00:13:59,800 --> 00:14:02,680 Speaker 1: right from e commerce platforms like JD dot Com or 261 00:14:02,720 --> 00:14:06,440 Speaker 1: Pino Do or even China Search Changine Giant, they do 262 00:14:07,000 --> 00:14:10,560 Speaker 1: Evie company Neil. You know, this move could definitely help 263 00:14:10,679 --> 00:14:14,840 Speaker 1: solidify Hong Kong as as an alternative venue, and it's 264 00:14:14,880 --> 00:14:17,760 Speaker 1: likely going to encourage more more activity over the next 265 00:14:17,760 --> 00:14:21,800 Speaker 1: few months. So what do you see is next here 266 00:14:22,000 --> 00:14:26,040 Speaker 1: in terms of Ali Baba's evolving relationship with its own government, 267 00:14:26,040 --> 00:14:28,520 Speaker 1: the Chinese government, which as we know, over the last 268 00:14:28,560 --> 00:14:32,840 Speaker 1: couple of years has been incredibly challenging. I think that's 269 00:14:32,920 --> 00:14:35,920 Speaker 1: the one of the main reasons of these uh primary 270 00:14:35,960 --> 00:14:38,320 Speaker 1: listing in Hong Kong, right, I think Ali Baba is 271 00:14:38,320 --> 00:14:41,800 Speaker 1: definitely trying to work closer with the government in many regards. 272 00:14:42,000 --> 00:14:45,120 Speaker 1: Were already seeing a lot of policies implemented it by 273 00:14:45,160 --> 00:14:49,640 Speaker 1: Ali Baba to comply with the umbrella of common prosperity 274 00:14:49,680 --> 00:14:53,800 Speaker 1: regulations in China. So I think most likely over the 275 00:14:53,840 --> 00:14:57,000 Speaker 1: next few months will continue to see these large internet 276 00:14:57,040 --> 00:15:00,400 Speaker 1: companies working closely with regulators to avoid all of these 277 00:15:00,440 --> 00:15:03,600 Speaker 1: regulatory risks that we faced as as investors. Over the 278 00:15:03,640 --> 00:15:08,200 Speaker 1: last few years. All right, Pedro Pollen Dronni Global x 279 00:15:08,600 --> 00:15:13,000 Speaker 1: UH Director of Research, thank you so much for joining us. Obviously, 280 00:15:13,040 --> 00:15:16,360 Speaker 1: we'll continue to follow this Ali Baba situation. Meantime, we're 281 00:15:16,400 --> 00:15:19,240 Speaker 1: following new headlines coming in about Twitter. Twitter setting a 282 00:15:19,360 --> 00:15:23,200 Speaker 1: date for a special shareholder vote on the proposed takeover 283 00:15:23,240 --> 00:15:26,040 Speaker 1: by Elon Musk for billion dollars. Of course, we know 284 00:15:26,120 --> 00:15:28,760 Speaker 1: Elon Musk is trying to get out of the deal altogether. 285 00:15:28,800 --> 00:15:30,800 Speaker 1: They're fighting over the date for the trial to start, 286 00:15:30,800 --> 00:15:34,040 Speaker 1: which is looking to sometime in October. But Twitter has 287 00:15:34,080 --> 00:15:37,000 Speaker 1: now set the date of September for a special meeting 288 00:15:37,480 --> 00:15:41,400 Speaker 1: with shareholders. Interesting, of course, given that Elon Musk doesn't 289 00:15:41,400 --> 00:15:43,800 Speaker 1: want this steal to go forward at all. But we've 290 00:15:43,800 --> 00:15:47,080 Speaker 1: got our eyes on September and then the trial coming 291 00:15:47,200 --> 00:15:59,920 Speaker 1: up sometime in October. Now, could Walmart's surprise cut to 292 00:16:00,000 --> 00:16:03,400 Speaker 1: its profit outlook signal doom for e commerce? Consumers have 293 00:16:03,640 --> 00:16:06,280 Speaker 1: little to spend on discretionary goods due to the rising 294 00:16:06,280 --> 00:16:10,440 Speaker 1: costs of food and and gas. Bloomers John Edwards joins 295 00:16:10,520 --> 00:16:12,400 Speaker 1: us now to talk about the state of the e 296 00:16:12,480 --> 00:16:16,000 Speaker 1: commerce industry, and on top of these numbers from Walmart, John, 297 00:16:16,120 --> 00:16:18,840 Speaker 1: we see Shopify cutting ten thousand jobs. This is a 298 00:16:18,840 --> 00:16:22,200 Speaker 1: company that's been riding high over the last couple of years. 299 00:16:22,480 --> 00:16:25,200 Speaker 1: How does this all add up to you? Yeah, well, um, 300 00:16:25,320 --> 00:16:27,960 Speaker 1: I mean Shopify, you know, for one thing was interesting. 301 00:16:28,080 --> 00:16:33,040 Speaker 1: They made a big bet that the shift e commerce 302 00:16:33,040 --> 00:16:36,600 Speaker 1: that we saw during the height of the pandemic was 303 00:16:36,600 --> 00:16:39,880 Speaker 1: going to be long lasting, in fact accelerate, um, you know, 304 00:16:39,960 --> 00:16:44,600 Speaker 1: faster than anybody had had expected before before COVID, and 305 00:16:44,920 --> 00:16:47,440 Speaker 1: that that bet just turned out to be completely wrong. 306 00:16:47,680 --> 00:16:52,360 Speaker 1: They uh, you know, thought that uh, people were not 307 00:16:52,520 --> 00:16:55,640 Speaker 1: going to go back to in person shopping at the 308 00:16:55,680 --> 00:16:58,560 Speaker 1: pace that they did, but people have flocked back to 309 00:16:58,680 --> 00:17:02,600 Speaker 1: stores and so that led to a shop Shopify having 310 00:17:02,640 --> 00:17:07,439 Speaker 1: to cut a bunch of jobs. Um yeah, what is 311 00:17:07,480 --> 00:17:10,280 Speaker 1: what we're seeing here indicate about Amazon results, which we're 312 00:17:10,320 --> 00:17:13,800 Speaker 1: expecting later this week. Yeah, that's gonna be really interesting 313 00:17:13,800 --> 00:17:16,840 Speaker 1: to watch in light of what we heard from Walmart, 314 00:17:16,920 --> 00:17:19,679 Speaker 1: because you know, what Walmart is seeing there is is 315 00:17:19,920 --> 00:17:23,160 Speaker 1: not so much that uh spending overall is slowing down, 316 00:17:23,160 --> 00:17:25,560 Speaker 1: but that the mix is shifting in a way that 317 00:17:26,240 --> 00:17:30,520 Speaker 1: is going to cut into their margins. So people are 318 00:17:30,560 --> 00:17:34,439 Speaker 1: spending you know, less on big ticket items. Less on 319 00:17:34,920 --> 00:17:38,760 Speaker 1: uh you know, discretionary you know, sort of splurge items 320 00:17:38,840 --> 00:17:43,320 Speaker 1: and shifting their spending to food fuel things that are 321 00:17:43,760 --> 00:17:46,680 Speaker 1: you know, staples that people have to have. Uh. And 322 00:17:46,800 --> 00:17:51,560 Speaker 1: so that really is where Walmart's profit warning came from. 323 00:17:51,600 --> 00:17:56,399 Speaker 1: You know. In fact, they raised their expectation for revenue overall, 324 00:17:57,200 --> 00:17:59,959 Speaker 1: but the mix is such that it's going to be 325 00:18:00,080 --> 00:18:03,560 Speaker 1: much less profitable revenue for them. So that's definitely going 326 00:18:03,600 --> 00:18:07,200 Speaker 1: to be something to watch from Amazon on on on Thursday, 327 00:18:07,240 --> 00:18:11,960 Speaker 1: because uh, you know, Amazon obviously likes to sell a 328 00:18:11,960 --> 00:18:14,560 Speaker 1: lot of those same big ticket items that people are 329 00:18:14,840 --> 00:18:18,000 Speaker 1: starting to shy away from. Now. We were speaking about 330 00:18:18,000 --> 00:18:21,560 Speaker 1: this with respect to Alphabet and Microsoft earnings earlier. I 331 00:18:21,600 --> 00:18:23,920 Speaker 1: spoke with Alphabet CFO with Corad who used the word 332 00:18:23,920 --> 00:18:29,439 Speaker 1: on uncertainty multiple times. We're seeing these mixed results, you know, 333 00:18:29,680 --> 00:18:34,359 Speaker 1: slightly below estimate results, and it's causing some confusion about 334 00:18:34,359 --> 00:18:38,040 Speaker 1: whether or not we're already in a recession. Are we 335 00:18:38,119 --> 00:18:40,240 Speaker 1: according to these numbers that we're seeing from these e 336 00:18:40,320 --> 00:18:44,280 Speaker 1: commerce companies? Are we? Uh, you know, it's hard to say, 337 00:18:44,320 --> 00:18:46,800 Speaker 1: but I would say no for now. I think, um, 338 00:18:46,840 --> 00:18:51,119 Speaker 1: you know, again, it's it's less a complete slowdown and 339 00:18:51,160 --> 00:18:54,320 Speaker 1: spending and more a shift in the mix. Um, you know, 340 00:18:54,359 --> 00:18:58,119 Speaker 1: and you know, high inflation is biting everyone and it 341 00:18:58,200 --> 00:19:00,720 Speaker 1: and it's so it's changing the prior days that people 342 00:19:00,760 --> 00:19:04,320 Speaker 1: have in terms of what they're spending on. But as 343 00:19:04,359 --> 00:19:09,919 Speaker 1: we saw, you know, in the earnings from companies like McDonald's, UM, 344 00:19:09,920 --> 00:19:13,879 Speaker 1: Coca Cola, PepsiCo a couple of weeks ago, Uh, people 345 00:19:13,960 --> 00:19:18,320 Speaker 1: are still spending on you know, things like food going out, 346 00:19:18,720 --> 00:19:22,760 Speaker 1: you know, buying soda and chips and things. So uh, 347 00:19:22,840 --> 00:19:25,000 Speaker 1: you know, it's it's more of a change in the 348 00:19:25,040 --> 00:19:29,240 Speaker 1: mix and less of a complete slowdown. All right, Well, 349 00:19:29,280 --> 00:19:31,240 Speaker 1: the story is not over, John. We're gonna be watching 350 00:19:31,240 --> 00:19:33,720 Speaker 1: those Amazon results coming out later this week. Thank you 351 00:19:33,800 --> 00:19:38,280 Speaker 1: so much, Bloomberg. John Edwards, appreciate your insights there. Meantime, 352 00:19:38,320 --> 00:19:41,119 Speaker 1: another story we're watching, Russia says it will opt out 353 00:19:41,440 --> 00:19:46,159 Speaker 1: of the International Space Station after Russia planning to focus 354 00:19:46,160 --> 00:19:50,439 Speaker 1: on building its own orbital outpost, according to its new 355 00:19:50,480 --> 00:19:54,040 Speaker 1: space chief. This move coming amid tentions between Russia and 356 00:19:54,119 --> 00:19:56,480 Speaker 1: the West over the war on Ukraine. Russia says it 357 00:19:56,480 --> 00:19:58,960 Speaker 1: will fulfill its obligations to other partners at the space 358 00:19:59,000 --> 00:20:01,720 Speaker 1: station before it leaves the project, and NASA says the 359 00:20:01,760 --> 00:20:04,719 Speaker 1: I s S is scheduled to be decommissioned to crash 360 00:20:04,920 --> 00:20:18,040 Speaker 1: into the Pacific Ocean anyway. By welcome back to Bloomberg Technology. 361 00:20:18,040 --> 00:20:20,080 Speaker 1: I'm Emily check in San Francisco. Let's get back to 362 00:20:20,359 --> 00:20:22,080 Speaker 1: our top stories of the day. I want to dig 363 00:20:22,119 --> 00:20:24,640 Speaker 1: it now to the state of cybersecurity and pal Alton 364 00:20:24,720 --> 00:20:28,960 Speaker 1: Network's Threat Intelligence and Security Consulting Team or unitfory too. 365 00:20:29,400 --> 00:20:31,479 Speaker 1: Is that with a new report into cyber crime trends 366 00:20:31,480 --> 00:20:35,479 Speaker 1: and predictions and the impact of declining economic conditions, how 367 00:20:35,520 --> 00:20:37,879 Speaker 1: are these two connected. Let's ask Wendy with More, senior 368 00:20:37,960 --> 00:20:41,720 Speaker 1: vice president and head of pal Alton Networks Unit forty two. 369 00:20:41,800 --> 00:20:45,119 Speaker 1: So on the one hand, uh, cyber attacks, cyber threats 370 00:20:45,119 --> 00:20:48,120 Speaker 1: seemed to be quieter at the moment. Why is that. 371 00:20:48,119 --> 00:20:50,720 Speaker 1: That's a great question, Emily, it does seem that way. 372 00:20:50,880 --> 00:20:52,760 Speaker 1: I don't know that that's actually the case. I think 373 00:20:52,880 --> 00:20:55,560 Speaker 1: what's happening is that we haven't seen these mega breaches 374 00:20:55,600 --> 00:20:58,720 Speaker 1: posted in the news. That's usually good news. Actually that 375 00:20:58,760 --> 00:21:01,200 Speaker 1: we are not seeing as any of these massive leaks 376 00:21:01,200 --> 00:21:03,439 Speaker 1: in the news. But the reality is that there is 377 00:21:03,440 --> 00:21:07,000 Speaker 1: a new ransomware victim posted online with their data that 378 00:21:07,440 --> 00:21:11,400 Speaker 1: are being exhorted every four hours, we see the new 379 00:21:11,480 --> 00:21:15,280 Speaker 1: victims being posted on leak sites. But you are reporting 380 00:21:15,359 --> 00:21:18,679 Speaker 1: there could be an uptick in cybercrime because of the 381 00:21:18,680 --> 00:21:21,919 Speaker 1: deteriorating situation and the economy, And we've been reporting throughout 382 00:21:21,960 --> 00:21:25,080 Speaker 1: the show more bad news, whether it's results from Alphabet 383 00:21:25,200 --> 00:21:29,400 Speaker 1: or Microsoft, or Walmart or Shopify. Talk to us about 384 00:21:29,400 --> 00:21:33,000 Speaker 1: how this could have all have an impact on cybercrime. Yeah, Well, 385 00:21:33,040 --> 00:21:35,480 Speaker 1: what we see is that whenever there is money to 386 00:21:35,520 --> 00:21:38,000 Speaker 1: be made, there are certainly criminals that are attracted to 387 00:21:38,080 --> 00:21:41,720 Speaker 1: that opportunity. So in over six hundred cases a unit 388 00:21:41,760 --> 00:21:45,959 Speaker 1: forty two investigated last year, we saw payment requests as 389 00:21:46,040 --> 00:21:49,639 Speaker 1: high as thirty million US dollars in ransomware cases and 390 00:21:49,720 --> 00:21:53,800 Speaker 1: the average is nine thousand U S dollars, So we're 391 00:21:53,800 --> 00:21:57,800 Speaker 1: almost at a million dollars as an average payment. There 392 00:21:57,840 --> 00:21:59,879 Speaker 1: is a tremendous amount of money to be made, and 393 00:22:00,040 --> 00:22:03,240 Speaker 1: to your point, there is still a much lower barrier 394 00:22:03,320 --> 00:22:06,199 Speaker 1: to entry for the criminal side than it is for 395 00:22:06,240 --> 00:22:10,359 Speaker 1: the defense side. Another interesting statistic that we identified that 396 00:22:10,440 --> 00:22:13,480 Speaker 1: relates to that is it the average dwell time, meaning 397 00:22:13,520 --> 00:22:16,280 Speaker 1: how long an attacker is in an environment before they 398 00:22:16,320 --> 00:22:20,480 Speaker 1: go unnoticed, UH is twenty eight days. That means the 399 00:22:20,520 --> 00:22:23,520 Speaker 1: longer they're in an environment, the more damage that they 400 00:22:23,560 --> 00:22:27,120 Speaker 1: can cause, and that damage directly translates to the more 401 00:22:27,200 --> 00:22:29,960 Speaker 1: amounts of money that they can receive on the back end. 402 00:22:30,359 --> 00:22:33,680 Speaker 1: I want to ask you about China. We're preparing for 403 00:22:34,000 --> 00:22:37,360 Speaker 1: how speaker Nancy Pelosi to visit Taiwan. The Chinese government 404 00:22:37,920 --> 00:22:40,440 Speaker 1: not happy about this. At the same time, we're seeing 405 00:22:40,440 --> 00:22:45,159 Speaker 1: Ali Baba prepare for a stock listing in Hong Kong. 406 00:22:45,640 --> 00:22:50,199 Speaker 1: I'm curious if you're expecting rising US China tention to 407 00:22:50,359 --> 00:22:54,640 Speaker 1: potentially lead to an increase in cybercrime as well. So 408 00:22:54,680 --> 00:22:57,680 Speaker 1: I think the reality is, you know, diplomatic ties or not. Right, 409 00:22:57,720 --> 00:23:00,960 Speaker 1: We've seen a tremendous amount of intellectual a property staft 410 00:23:01,080 --> 00:23:04,280 Speaker 1: coming from different nation states throughout the world. China is 411 00:23:04,320 --> 00:23:08,000 Speaker 1: an or is a nation state that's certainly alongside so 412 00:23:08,080 --> 00:23:10,679 Speaker 1: many other countries. Has gone back and forth with the 413 00:23:10,760 --> 00:23:15,479 Speaker 1: United States on that. So UH. In addition to ransomware cases, 414 00:23:15,520 --> 00:23:18,359 Speaker 1: which we've spoke about, one of the largest cases we 415 00:23:18,400 --> 00:23:21,800 Speaker 1: see our business email compromise, and we do see there's 416 00:23:22,000 --> 00:23:25,199 Speaker 1: um an interesting amount of overlap between these cases and 417 00:23:25,280 --> 00:23:28,960 Speaker 1: certainly nation state activity. I think as recent as last 418 00:23:29,000 --> 00:23:33,600 Speaker 1: week we saw North Korean our team released research related 419 00:23:33,640 --> 00:23:37,240 Speaker 1: to North Korean threat activity related to ransomware cases. So 420 00:23:37,400 --> 00:23:41,119 Speaker 1: I don't think uh, cyber criminal activity is going away 421 00:23:41,119 --> 00:23:44,600 Speaker 1: anytime soon. Whether it's at the economic crime actor or 422 00:23:44,640 --> 00:23:47,360 Speaker 1: whether it's from a nation state capacity, we will continue 423 00:23:47,359 --> 00:23:49,480 Speaker 1: to see more of it, all right. Wenday went More, 424 00:23:49,640 --> 00:23:52,000 Speaker 1: Senior vice president, a head of palle Alto Networks Unit 425 00:23:52,040 --> 00:23:54,760 Speaker 1: forty two. Wenday, great to have you, Thank you many time. 426 00:23:54,800 --> 00:23:57,240 Speaker 1: It is the It is the first major effort by 427 00:23:57,400 --> 00:23:59,880 Speaker 1: the US Congress to regulate big tex since the inception 428 00:24:00,040 --> 00:24:03,439 Speaker 1: the Internet. Lawmakers could vote on the American Innovation and 429 00:24:03,520 --> 00:24:07,640 Speaker 1: Choice Act before mid term elections. This measure would lay 430 00:24:07,640 --> 00:24:11,959 Speaker 1: down ground rules for dominant companies like Alphabet, Amazon, Apple, 431 00:24:12,080 --> 00:24:15,479 Speaker 1: and Meta. Earlier, I spoke with Alphabet CFO with Port 432 00:24:15,680 --> 00:24:19,480 Speaker 1: and asked her about the various antitrust proposals. She said 433 00:24:19,960 --> 00:24:23,240 Speaker 1: the proposals could break a wide variety of services and 434 00:24:23,359 --> 00:24:25,879 Speaker 1: others we offer. That being said, we're very focused on 435 00:24:25,880 --> 00:24:28,960 Speaker 1: what can be landed, and we're seeing progress in the 436 00:24:29,040 --> 00:24:32,159 Speaker 1: Chips Act. We're focused on places like privacy legislation and 437 00:24:32,240 --> 00:24:36,640 Speaker 1: updated protections to children. It continues to be a dynamic process. 438 00:24:48,720 --> 00:24:51,000 Speaker 1: Congress has looked at this issue, right They want to 439 00:24:51,320 --> 00:24:53,280 Speaker 1: opine on this, They want to try to find a 440 00:24:53,359 --> 00:24:56,600 Speaker 1: pathway forward. And I think instead of doing this regulation 441 00:24:56,680 --> 00:25:00,320 Speaker 1: by enforcement, we should be looking at the legislative SSS. 442 00:25:00,440 --> 00:25:04,560 Speaker 1: We should be looking at the open executive order research 443 00:25:04,720 --> 00:25:07,600 Speaker 1: and study that's going on right now to really think 444 00:25:07,600 --> 00:25:12,760 Speaker 1: through this from a public policy perspective. Kristin Smith's there 445 00:25:12,920 --> 00:25:16,879 Speaker 1: of the Blockchain Association on Bloomberg's Crypto show earlier, reacting 446 00:25:16,880 --> 00:25:20,440 Speaker 1: to the latest in the coin based sec saga, Bloomber 447 00:25:20,480 --> 00:25:23,040 Speaker 1: has learned that the crypto platform is facing a US 448 00:25:23,080 --> 00:25:26,560 Speaker 1: investigation into its crypto listings. The SEC wants to know 449 00:25:26,640 --> 00:25:29,800 Speaker 1: of the platform improperly led Americans trade digital assets that 450 00:25:29,800 --> 00:25:33,280 Speaker 1: should have been listed as securities. Bloombergs Allison verse Ball 451 00:25:33,400 --> 00:25:36,720 Speaker 1: joins US now from Washington, and of course are Bloomberg 452 00:25:36,760 --> 00:25:40,199 Speaker 1: Crypto contributor Shinneli Bassick as well. Alison. I'll start with you, 453 00:25:40,480 --> 00:25:45,200 Speaker 1: what exactly is the SEC contending here? So the SEC 454 00:25:45,440 --> 00:25:47,840 Speaker 1: is trying to, you know, weigh in on on one 455 00:25:47,840 --> 00:25:50,720 Speaker 1: of the biggest ISU's facing the crypto industry. It's whether 456 00:25:51,640 --> 00:25:56,119 Speaker 1: these exchanges like coin base are actually listing, uh, the 457 00:25:56,160 --> 00:25:59,479 Speaker 1: tokens that they're listing to our securities. And you know, 458 00:25:59,600 --> 00:26:04,000 Speaker 1: if the sec determines that they are, UM, that potentially 459 00:26:04,040 --> 00:26:08,760 Speaker 1: requires these these firms to register as exchanges with the regulators. 460 00:26:08,800 --> 00:26:11,359 Speaker 1: So it could be a big deal. Uh. You know, 461 00:26:11,400 --> 00:26:12,920 Speaker 1: it comes at a time when a lot of these 462 00:26:12,920 --> 00:26:17,440 Speaker 1: exchanges are arguing that they don't offer any securities, that 463 00:26:17,520 --> 00:26:21,359 Speaker 1: actually all of the tokens on their platforms our commodities. UM. 464 00:26:21,400 --> 00:26:25,000 Speaker 1: So it's definitely a hot debate right now, HINALI, why 465 00:26:25,080 --> 00:26:27,439 Speaker 1: is it so confusing? Why is it so hard to 466 00:26:27,560 --> 00:26:31,560 Speaker 1: answer that question? Is crypto security? It's a good question, 467 00:26:31,560 --> 00:26:34,840 Speaker 1: And think about how many renditions this argument has taken 468 00:26:35,119 --> 00:26:37,080 Speaker 1: over the last couple of years, whether you're talking about 469 00:26:37,119 --> 00:26:38,760 Speaker 1: n f T S or I c O S or 470 00:26:38,960 --> 00:26:41,879 Speaker 1: crypto itself, the tokens itself. And I go back to 471 00:26:42,359 --> 00:26:44,920 Speaker 1: what Brian Armstrong had said in a big tweet thread 472 00:26:45,000 --> 00:26:46,680 Speaker 1: last year. Remember this is when it really started to 473 00:26:46,720 --> 00:26:50,800 Speaker 1: get very contentious between the industry and the agencies. And 474 00:26:51,040 --> 00:26:53,000 Speaker 1: you know what Brian Armstrong said at that time is 475 00:26:53,000 --> 00:26:55,160 Speaker 1: they refused to tell us why they think it's security, 476 00:26:55,440 --> 00:26:58,119 Speaker 1: and instead subpoena a bunch of records from US, we comply, 477 00:26:58,320 --> 00:27:01,480 Speaker 1: demand testimony from employees. We comply, and then tell us 478 00:27:01,560 --> 00:27:04,600 Speaker 1: that we y'll sue us if we launch certain products. So, 479 00:27:04,840 --> 00:27:07,200 Speaker 1: you know, to Allison's point here, a lot of this 480 00:27:07,240 --> 00:27:10,840 Speaker 1: is being done through enforcement rather than rulemaking itself. So 481 00:27:10,920 --> 00:27:14,680 Speaker 1: until the agencies decide what's a currency, what's a commodity, 482 00:27:14,680 --> 00:27:17,400 Speaker 1: and what's the security, it's going to be very difficult 483 00:27:17,440 --> 00:27:21,880 Speaker 1: for the industry to to work around that. Now, Allison, 484 00:27:22,920 --> 00:27:27,000 Speaker 1: is this connected to the insider trading investigation that was 485 00:27:27,080 --> 00:27:31,160 Speaker 1: brought against a former coin based manager just last week. 486 00:27:32,720 --> 00:27:36,160 Speaker 1: So the ongoing probe into weather coin base is offering 487 00:27:36,440 --> 00:27:40,800 Speaker 1: and properly offering unregistered securities is separate, UM, but it 488 00:27:40,840 --> 00:27:43,760 Speaker 1: does have some ties that you know, the insider Trading 489 00:27:43,800 --> 00:27:46,160 Speaker 1: club does have some ties that could connect to coin 490 00:27:46,200 --> 00:27:50,200 Speaker 1: base as well. UM. So in the SEC's complaint last week, UM, 491 00:27:50,200 --> 00:27:52,880 Speaker 1: that dealt with, you know, a former coin base employee 492 00:27:52,920 --> 00:27:56,760 Speaker 1: potentially leaking inflammation to his brother and a friend. At 493 00:27:56,800 --> 00:28:00,720 Speaker 1: least that's the allegation. UM, the SEC did I identify 494 00:28:00,960 --> 00:28:04,840 Speaker 1: nine tokens that it thought were securities. UM. And so 495 00:28:04,880 --> 00:28:06,679 Speaker 1: at the time, you know, before we knew about this 496 00:28:06,760 --> 00:28:10,840 Speaker 1: other probe that actually predates those allegations. At the time, 497 00:28:10,840 --> 00:28:12,760 Speaker 1: I was talking to folks who said, you know, this 498 00:28:12,920 --> 00:28:16,000 Speaker 1: does have effects on poin based as well, because the exchange. 499 00:28:16,040 --> 00:28:18,439 Speaker 1: The exchange has said that it lists seven of the 500 00:28:18,520 --> 00:28:22,479 Speaker 1: nine that were identified UM, so essentially implies, you know, 501 00:28:22,600 --> 00:28:25,520 Speaker 1: if the SEC thinks these are securities and coin bases 502 00:28:25,520 --> 00:28:28,040 Speaker 1: listing seven of them, UM, then it's kind of a 503 00:28:28,080 --> 00:28:30,920 Speaker 1: backdoor way of saying that, you know, they do need 504 00:28:30,960 --> 00:28:34,040 Speaker 1: to come in and register UM. And it works off 505 00:28:34,080 --> 00:28:36,359 Speaker 1: of what SEC chair Gary Gensler has been saying for 506 00:28:36,359 --> 00:28:38,840 Speaker 1: a long time now that he thinks a lot of 507 00:28:38,880 --> 00:28:42,320 Speaker 1: these exchanges are offering securities and a lot of them, 508 00:28:42,560 --> 00:28:44,840 Speaker 1: you know, need to come in and comply with his 509 00:28:44,920 --> 00:28:48,240 Speaker 1: agency's rules. Shinnali, what are next steps here? The next 510 00:28:48,240 --> 00:28:50,720 Speaker 1: steps are interesting here because if you look, for example, 511 00:28:50,800 --> 00:28:52,880 Speaker 1: just all the way back at coin Bases S one, 512 00:28:52,880 --> 00:28:56,240 Speaker 1: it's impo Finally, it's said that the evolving regulatory landscape 513 00:28:56,240 --> 00:28:59,239 Speaker 1: would be a risk factor for investors. And look how 514 00:28:59,320 --> 00:29:01,680 Speaker 1: much it has. In one the scoop that Ali had 515 00:29:01,720 --> 00:29:04,720 Speaker 1: put out just today, for example, coin bases stock dropped 516 00:29:04,720 --> 00:29:08,360 Speaker 1: about and with the total stock drop you've seen this year, 517 00:29:08,680 --> 00:29:11,200 Speaker 1: the market cap has come down so much, Emily, think 518 00:29:11,200 --> 00:29:13,920 Speaker 1: about it is less than half the size of NASDAC 519 00:29:14,040 --> 00:29:16,080 Speaker 1: now and when it went public it was much much bigger. 520 00:29:16,240 --> 00:29:19,800 Speaker 1: So remember exchanges in the United States, stock exchanges have 521 00:29:20,040 --> 00:29:22,440 Speaker 1: what the industry likes to call or think of as 522 00:29:22,520 --> 00:29:25,560 Speaker 1: quasi regulatory powers. So when you look at these big 523 00:29:25,560 --> 00:29:28,160 Speaker 1: crypto exchanges, which are kind of the primary way here 524 00:29:28,240 --> 00:29:30,960 Speaker 1: to regulate the industry or oversee the industry, are they 525 00:29:30,960 --> 00:29:33,280 Speaker 1: going to look more like stock exchanges in the future 526 00:29:33,320 --> 00:29:36,080 Speaker 1: where they have rulemaking capabilities, where they're more subject to 527 00:29:36,360 --> 00:29:40,240 Speaker 1: SEC oversight. Or also how much will the agencies fight 528 00:29:40,400 --> 00:29:43,880 Speaker 1: it through themselves and have the CFTC have more claim 529 00:29:44,080 --> 00:29:47,840 Speaker 1: over some of these assets as commodities instead. It's an 530 00:29:47,880 --> 00:29:51,360 Speaker 1: open question and it will be played out. It looks 531 00:29:51,360 --> 00:29:54,360 Speaker 1: like in courts in a lot of cases, Allison, any 532 00:29:54,440 --> 00:29:57,120 Speaker 1: precedent for where this could land or none at all 533 00:29:57,280 --> 00:30:01,440 Speaker 1: because digital assets are so new. Uh So, I you know, 534 00:30:01,520 --> 00:30:03,640 Speaker 1: I'm not a lot of precedent here in terms of 535 00:30:04,080 --> 00:30:07,400 Speaker 1: whether digital assets are securities. This is actually the first 536 00:30:07,440 --> 00:30:10,000 Speaker 1: time that we've really seen the SEC come out and 537 00:30:10,480 --> 00:30:13,640 Speaker 1: list specific tokens that it thinks our securities, despite having 538 00:30:13,680 --> 00:30:15,960 Speaker 1: said for probably over a year now that it thinks 539 00:30:15,960 --> 00:30:18,560 Speaker 1: that these exchanges do have securities on them. So it's 540 00:30:18,600 --> 00:30:21,320 Speaker 1: kind of a rare move for the agency. It's normally 541 00:30:21,440 --> 00:30:27,160 Speaker 1: straight away from making those specific identifications, partly because it's 542 00:30:27,280 --> 00:30:29,440 Speaker 1: it's probably you know, we talked to folks who say 543 00:30:29,440 --> 00:30:31,840 Speaker 1: it's not really in their interest to kind of pigeon themselves. 544 00:30:31,920 --> 00:30:35,480 Speaker 1: The pigeon holed themselves into. These assets are securities, these 545 00:30:35,520 --> 00:30:38,560 Speaker 1: assets are commodities. By keeping it a little bit bigger, 546 00:30:38,600 --> 00:30:40,520 Speaker 1: it gives them a little bit more leeway. All right, 547 00:30:40,880 --> 00:30:44,360 Speaker 1: thank you so much for clarifying a very confusing situation. 548 00:30:44,440 --> 00:30:47,120 Speaker 1: Flood Brigs Allison Verse, we're all along with our cryptical 549 00:30:47,120 --> 00:30:50,320 Speaker 1: contribution Aali Bostic, Thank you both. Coming up. Airlines are 550 00:30:50,400 --> 00:30:54,400 Speaker 1: losing more luggage than ever, so can bag trackers save 551 00:30:54,480 --> 00:31:01,240 Speaker 1: you from losing your stuff forever? Spoiler? Not really? That's next. 552 00:31:01,560 --> 00:31:20,080 Speaker 1: This is Bloomberg. The economy is catching up to Apple 553 00:31:20,440 --> 00:31:22,480 Speaker 1: for the first time in a while. It feels like 554 00:31:22,480 --> 00:31:27,239 Speaker 1: the iphonemaker is especially vulnerable to outside economic factors like 555 00:31:27,360 --> 00:31:31,440 Speaker 1: rising inflation, increasing interest rates, and the fluctuating US dollar. 556 00:31:32,360 --> 00:31:35,400 Speaker 1: The company this week will report third quarter earnings that 557 00:31:35,480 --> 00:31:38,400 Speaker 1: many and lists anticipate will come in about flat from 558 00:31:38,520 --> 00:31:41,280 Speaker 1: last year. That compares to this time a year ago, 559 00:31:41,520 --> 00:31:44,840 Speaker 1: when Apple reported about thirty six year over your growth 560 00:31:45,920 --> 00:31:48,680 Speaker 1: and listened to sipate. Apple to report revenue around eighty 561 00:31:48,720 --> 00:31:51,560 Speaker 1: two billion dollars, with about thirty nine billion of that 562 00:31:51,680 --> 00:31:55,000 Speaker 1: stemming from the iPhone, under twenty billion coming from services, 563 00:31:55,360 --> 00:31:58,240 Speaker 1: about seven billion coming from the iPad, eight and a 564 00:31:58,240 --> 00:32:00,640 Speaker 1: half billion coming from the Mac, and a eight point 565 00:32:00,640 --> 00:32:03,720 Speaker 1: eight billion coming from popular accessories like the air pods 566 00:32:03,760 --> 00:32:07,360 Speaker 1: and the Apple Watch. Well, these are certainly impressive numbers, 567 00:32:07,400 --> 00:32:10,320 Speaker 1: some analysts and investors will probably be concerned about the 568 00:32:10,360 --> 00:32:13,760 Speaker 1: lack of real growth. Apple already said, however, it's expecting 569 00:32:13,800 --> 00:32:16,560 Speaker 1: a negative hit of about eight billion dollars to third 570 00:32:16,640 --> 00:32:20,360 Speaker 1: quarter revenue due to China shutdowns related to Covid earlier 571 00:32:20,360 --> 00:32:23,560 Speaker 1: this year, and of course, the ongoing chip shortage. This 572 00:32:23,600 --> 00:32:27,280 Speaker 1: week's report also comes amid the company's plan to slow 573 00:32:27,360 --> 00:32:30,680 Speaker 1: hiring and spending in some divisions next year as it 574 00:32:30,760 --> 00:32:35,000 Speaker 1: grapples with the possibility of a recession. Morgan Stanley and 575 00:32:35,000 --> 00:32:38,240 Speaker 1: Wells Fargo have also already cut their Apple stock price 576 00:32:38,320 --> 00:32:43,120 Speaker 1: targets given ongoing concerns about consumer spending in the near term. 577 00:32:43,160 --> 00:32:45,640 Speaker 1: I don't believe, however, that any of these are real 578 00:32:45,720 --> 00:32:49,440 Speaker 1: long term issues when we consider Apple's big product plans 579 00:32:49,640 --> 00:32:53,720 Speaker 1: for the end of and into which will include the 580 00:32:53,720 --> 00:32:57,760 Speaker 1: company's first mixed reality headset, four new iPhone fourteen models, 581 00:32:58,040 --> 00:33:01,440 Speaker 1: three new Apple Watches, new I pads, in several new macs. 582 00:33:02,160 --> 00:33:08,880 Speaker 1: I'm Mark German. This is power On. You can subscribe 583 00:33:08,880 --> 00:33:12,920 Speaker 1: to marks weekly power On newsletter at Bloomberg dot com. Well, 584 00:33:13,040 --> 00:33:16,800 Speaker 1: airlines around the world mishandled some twenty eight million bags 585 00:33:16,800 --> 00:33:19,520 Speaker 1: of luggage every year. That's just one estimate, but it 586 00:33:19,560 --> 00:33:23,280 Speaker 1: could be significantly higher this year as airports struggle with 587 00:33:23,320 --> 00:33:27,120 Speaker 1: high demand and fewer employees. Now folks can use trackers 588 00:33:27,120 --> 00:33:29,400 Speaker 1: like air tags or tile to keep an eye on 589 00:33:29,480 --> 00:33:32,560 Speaker 1: their belongings. But as our Bradstone writes, knowing where your 590 00:33:32,560 --> 00:33:35,520 Speaker 1: suitcase is might not be enough to help you get 591 00:33:35,520 --> 00:33:38,840 Speaker 1: it back. Our Bradstone, head of our Bloomberg Tech coverage, 592 00:33:38,920 --> 00:33:41,000 Speaker 1: is here with me now. So you just took a 593 00:33:41,080 --> 00:33:44,520 Speaker 1: nice trip to Europe and they didn't lose your luggage, 594 00:33:44,640 --> 00:33:49,080 Speaker 1: thank goodness. But you saw this play out firsthand. That's right, Um, 595 00:33:49,080 --> 00:33:51,920 Speaker 1: we're pulling out of Heathrow and a guy across the 596 00:33:51,960 --> 00:33:54,440 Speaker 1: aisles waving his phone urgently at the flight attendant, going, 597 00:33:54,480 --> 00:33:56,800 Speaker 1: my bags aren't on this flight, And it turned out 598 00:33:56,800 --> 00:33:58,800 Speaker 1: you had put one of those twenty nine dollar Apple 599 00:33:58,840 --> 00:34:01,280 Speaker 1: air tags in his suitcase and could tell that he 600 00:34:01,320 --> 00:34:03,080 Speaker 1: was one of the victims of the current chaos. And 601 00:34:03,120 --> 00:34:05,640 Speaker 1: I just kind of wondered, are other people doing this? 602 00:34:05,880 --> 00:34:08,279 Speaker 1: And it turns out they are. But knowing where your 603 00:34:08,320 --> 00:34:12,080 Speaker 1: bag is doesn't necessarily ensure that you'll be reunited with 604 00:34:12,120 --> 00:34:14,440 Speaker 1: it after your flight, right I've heard so many horror 605 00:34:14,440 --> 00:34:16,880 Speaker 1: stories and people saying the DOTS says it's fright behind 606 00:34:16,920 --> 00:34:18,920 Speaker 1: that wall, but they can't get it back. I mean, 607 00:34:19,400 --> 00:34:21,680 Speaker 1: why is this happening? Why is it so much worse 608 00:34:21,760 --> 00:34:23,640 Speaker 1: this year? Yeah, I mean that is one way where 609 00:34:23,640 --> 00:34:26,680 Speaker 1: the air tag can be useful. These airlines and their 610 00:34:26,719 --> 00:34:30,160 Speaker 1: contractors are so overwhelmed right now, you know, knowing that 611 00:34:30,200 --> 00:34:33,839 Speaker 1: your bag is behind a wall or hasn't left your 612 00:34:33,880 --> 00:34:38,359 Speaker 1: point of disembarkation like that can be useful. Why are 613 00:34:38,360 --> 00:34:40,640 Speaker 1: they overwhelmed? I mean, I think it's a combination of 614 00:34:40,680 --> 00:34:44,600 Speaker 1: technical staff, foods and staffing shortages. Airlines, like a lot 615 00:34:44,680 --> 00:34:47,240 Speaker 1: of businesses coming out of the pandemic, were not prepared 616 00:34:47,600 --> 00:34:50,840 Speaker 1: for the resumption of normal travel activity. So if you're traveling, 617 00:34:51,120 --> 00:34:53,880 Speaker 1: what should you do aside from not checking a bag? 618 00:34:54,320 --> 00:34:56,439 Speaker 1: Do you use air tags or tile? Do you get 619 00:34:56,480 --> 00:34:59,719 Speaker 1: I've gotten some pitches for smart luggage, for example. I 620 00:35:00,120 --> 00:35:02,080 Speaker 1: it came out of this convinced that even though you 621 00:35:02,160 --> 00:35:05,000 Speaker 1: might not be able to do anything about your missing bags, 622 00:35:05,640 --> 00:35:08,360 Speaker 1: putting an air tag or a tile device in in 623 00:35:08,480 --> 00:35:11,880 Speaker 1: luggage if you have to check it is a good idea. 624 00:35:11,960 --> 00:35:13,399 Speaker 1: At least it will give you a piece of mind. 625 00:35:13,640 --> 00:35:15,799 Speaker 1: You might not want to wait that extra hour at 626 00:35:15,800 --> 00:35:18,040 Speaker 1: the airport if you know your bag's not there. But 627 00:35:18,280 --> 00:35:19,719 Speaker 1: if you're going to check a bag, you're going to 628 00:35:19,880 --> 00:35:22,640 Speaker 1: be really at the mercy of the airline and the 629 00:35:22,640 --> 00:35:26,880 Speaker 1: airport travel light. Don't put anything important in it, really, um, 630 00:35:26,920 --> 00:35:28,319 Speaker 1: I want to ask you a bit about this raft 631 00:35:28,320 --> 00:35:31,680 Speaker 1: of earnings results that we've gotten kind of mixed Microsoft 632 00:35:31,719 --> 00:35:36,840 Speaker 1: not good alphabet, you know, mostly slightly below estimates, advertising 633 00:35:36,840 --> 00:35:41,400 Speaker 1: above estimates. I talked to Ruth port At on the phone. 634 00:35:41,560 --> 00:35:44,320 Speaker 1: She used the word on certainty multiple times. She said 635 00:35:44,360 --> 00:35:46,319 Speaker 1: that there are just so many different factors at play here, 636 00:35:46,360 --> 00:35:48,560 Speaker 1: it's impossible to separate them out here. So the word 637 00:35:48,600 --> 00:35:52,600 Speaker 1: we're using to talk about this is uncertainty. What's your takeaway? Well, 638 00:35:52,640 --> 00:35:54,960 Speaker 1: first of all, compared to the blood bath of last 639 00:35:54,960 --> 00:35:58,640 Speaker 1: week with Snap and Twitter, I mean, look to today 640 00:35:58,719 --> 00:36:01,880 Speaker 1: has been a virtual celebrity ship. But I I agree 641 00:36:02,080 --> 00:36:05,719 Speaker 1: headwinds uncertainty when it comes to buying behavior, when it 642 00:36:05,719 --> 00:36:09,200 Speaker 1: comes to advertising behavior. You know, the cloud spending is 643 00:36:09,239 --> 00:36:12,640 Speaker 1: a little bit below expected at Microsoft and Google. And 644 00:36:12,680 --> 00:36:15,120 Speaker 1: then you have this currency question with a strong US 645 00:36:15,200 --> 00:36:17,680 Speaker 1: dollar and the lower value of overseas sales that I 646 00:36:17,719 --> 00:36:19,680 Speaker 1: think it's going to weigh on all the big tech companies. 647 00:36:20,000 --> 00:36:23,239 Speaker 1: So obviously you've covered a few economic cycles. We're waiting 648 00:36:23,239 --> 00:36:27,279 Speaker 1: Amazon later this week, Apple, Facebook as well, or I 649 00:36:27,280 --> 00:36:30,359 Speaker 1: should say Meta, And there's this big question of are 650 00:36:30,400 --> 00:36:32,560 Speaker 1: we in a recession or not? And how is this 651 00:36:32,600 --> 00:36:36,560 Speaker 1: really going to impact big tech? What are you watching? Yeah, well, 652 00:36:36,600 --> 00:36:40,160 Speaker 1: I'm the farthest thing from economic uh uh you know 653 00:36:40,200 --> 00:36:43,920 Speaker 1: evangelist here, Um, it certainly seems to me we're in 654 00:36:44,040 --> 00:36:47,440 Speaker 1: a recessionary period. I think, you know, for for Amazon, 655 00:36:47,520 --> 00:36:50,920 Speaker 1: we're gonna look at obviously e commerce sales, cloud growth. 656 00:36:50,960 --> 00:36:53,440 Speaker 1: I mean a WS isn't follow along with Azure and 657 00:36:53,760 --> 00:36:56,600 Speaker 1: Google Cloud and seeing a little bit of a spending pullback. 658 00:36:56,960 --> 00:36:59,160 Speaker 1: But you know, the big tech companies are very well 659 00:36:59,200 --> 00:37:01,520 Speaker 1: equipped to we there this, right. I don't think that 660 00:37:01,560 --> 00:37:04,279 Speaker 1: any of the Big four, Big five really are going 661 00:37:04,320 --> 00:37:07,200 Speaker 1: to have that significant problem longer term. It is the 662 00:37:07,200 --> 00:37:11,680 Speaker 1: company's like Snap and Twitter that seemed constantly engulfed in 663 00:37:11,680 --> 00:37:14,560 Speaker 1: in this kind of terminal turmoil that are very vulnerable, 664 00:37:14,600 --> 00:37:17,760 Speaker 1: which of course are more sort of experimental ad markets. 665 00:37:17,800 --> 00:37:20,160 Speaker 1: But what's Who's to say that Apple, which depends on 666 00:37:21,040 --> 00:37:24,640 Speaker 1: device sales significantly, isn't going to feel the impact of this. 667 00:37:24,680 --> 00:37:27,279 Speaker 1: I mean, they're doing sales on their products in China, sure, 668 00:37:27,480 --> 00:37:29,920 Speaker 1: and they probably will and Mark German has written a 669 00:37:29,920 --> 00:37:34,680 Speaker 1: lot about that. But the strength of the Apple model, 670 00:37:35,000 --> 00:37:38,439 Speaker 1: the health of the iOS ecosystem, seems so strong right now. 671 00:37:38,800 --> 00:37:42,759 Speaker 1: I don't personally imagine a protracted pullback. Okay, well, we 672 00:37:42,880 --> 00:37:44,680 Speaker 1: shall see. We're gonna be covering and your whole team 673 00:37:44,719 --> 00:37:47,320 Speaker 1: is gonna be across earnings all week. Thank you, Brad Stone, 674 00:37:47,320 --> 00:37:51,239 Speaker 1: our senior executive editor for Bloomberg Tech. And that does 675 00:37:51,280 --> 00:37:53,799 Speaker 1: it for this edition of Bloomberg Technology. Tomorrow, I'm gonna 676 00:37:53,800 --> 00:37:57,640 Speaker 1: speak with Mitchell Green lead Edge CEO after Spotify results, 677 00:37:57,640 --> 00:37:59,759 Speaker 1: plus what he has to say about TikTok and that 678 00:38:00,080 --> 00:38:03,640 Speaker 1: US continued competition, and don't forget to check out our 679 00:38:03,680 --> 00:38:07,360 Speaker 1: podcast wherever you get your podcasts. I'm Emily checking in 680 00:38:07,400 --> 00:38:09,320 Speaker 1: San Francisco. This is Bloomberg