WEBVTT - Silvergate Plans to Shut Down, Rent the Runaway's Avant Garde 0:00:13.240 --> 0:00:16.000 I'm Caroline hired at Bloomberg's world headquarters in New York, 0:00:16.200 --> 0:00:19.040 and I met Ludlow in San Francisco. This is Bloomberg 0:00:19.040 --> 0:00:22.400 Technology coming up. Silver Gate plans to wind down operations 0:00:22.400 --> 0:00:25.160 in liquidate what it means for the rest of Krypto. 0:00:26.200 --> 0:00:28.840 Then Google's VP for Trust and Safety joins us to 0:00:28.880 --> 0:00:33.160 talk about the guardrails needed for generative AI and rent. 0:00:33.159 --> 0:00:36.280 The Runway CEO discusses how the fashion rental is leaning 0:00:36.320 --> 0:00:40.279 in to a more cost conscious consumer, but first from 0:00:40.280 --> 0:00:43.160 the micro individual companies to the macro where we've seen, 0:00:43.720 --> 0:00:46.640 while actually little bit more of a mood shift just 0:00:46.680 --> 0:00:50.400 towards later, trade pale once again. The Chair of the 0:00:50.400 --> 0:00:53.199 Federal Reserve up on Capitol Hill and look didn't give 0:00:53.280 --> 0:00:55.600 much to alleviate the anxiety around whether the interest rates 0:00:55.640 --> 0:00:57.120 are going to be rising. But we did manage to 0:00:57.120 --> 0:00:59.800 see the NASDAC, the tech heavy benchmark push up full tense, 0:01:00.240 --> 0:01:02.520 recovering some of yesterday's sell off. We're looking at in 0:01:02.520 --> 0:01:06.199 particular the semiconductor index outperforming up two point seven percent. 0:01:06.400 --> 0:01:08.680 I'm noting though that really we're still trying to fight 0:01:08.720 --> 0:01:10.800 off a boring cost that's on the rise. Look at 0:01:10.800 --> 0:01:13.160 this level, are currently on the tenure or almost at 0:01:13.240 --> 0:01:15.640 four percent, up another two basis points on the front 0:01:15.720 --> 0:01:17.920 end of the curve. The two year we've been well 0:01:17.959 --> 0:01:19.959 above that five percent level. Let's flick it on with 0:01:20.040 --> 0:01:22.319 an inverted yield curve. We are still seeing some other 0:01:22.360 --> 0:01:25.440 areas or risk assets on the downside. Now, interestingly, we're 0:01:25.480 --> 0:01:28.160 seeing crypto once again under pressure. Dollar on the rises 0:01:28.200 --> 0:01:30.960 we think interest rates that have come, but Crypto under 0:01:31.000 --> 0:01:34.480 pressure for a whole host of different contagion issues that 0:01:34.520 --> 0:01:36.520 are facing them at the moment. Ed So from that 0:01:36.640 --> 0:01:38.560 mcchrome picture, I know you're going to delve in a 0:01:38.560 --> 0:01:41.839 little bit more to one particular name. Yeah. Look, power 0:01:41.880 --> 0:01:43.800 has been a big factor in the equity markets for 0:01:43.880 --> 0:01:47.320 individual names, but newsflow still drives the agenda. Actually, Adobe 0:01:47.319 --> 0:01:49.960 really interesting up three tenths of one percent, paired its gains, 0:01:49.960 --> 0:01:53.600 but we've reported Caroline that they're committing to no company 0:01:53.600 --> 0:01:55.720 wide layoffs this year. Will dig into that later in 0:01:55.720 --> 0:01:59.080 the show. Snaturally Interesting down almost six percent. A lot 0:01:59.080 --> 0:02:01.440 of notes out from the cell side today saying, actually, 0:02:01.440 --> 0:02:03.920 if you look at it, the chances of TikTok being 0:02:03.960 --> 0:02:06.640 banned in the US unlikely. So they won't be as 0:02:06.720 --> 0:02:09.760 much feel good read through to names like snap Data 0:02:09.800 --> 0:02:13.440 Dog down four percent, analysts warning about some systems issues 0:02:13.440 --> 0:02:16.760 and breaches which might impact revenue, and Tesla down three percent. 0:02:16.840 --> 0:02:21.680 Regulators looking into concerns about the steering wheel falling off 0:02:21.680 --> 0:02:25.240 the latest regulatory headache for the ev maker. Breaking news 0:02:25.240 --> 0:02:27.800 in the last hour. As he said, Silvergate has issued 0:02:27.800 --> 0:02:31.239 a statement telling the market that it is planning to 0:02:31.280 --> 0:02:35.240 wind down and liquidate. A profound reaction in after hours trading. 0:02:35.240 --> 0:02:38.359 We're down thirty five percent. Let's get straight to the details. 0:02:38.440 --> 0:02:41.480 Were bloombos Uci yang Ucci? What do we know so 0:02:41.720 --> 0:02:45.480 to this announcement from Silvergiate, it's not a total surprise 0:02:45.560 --> 0:02:48.560 if you have already followed the previous actions from the 0:02:48.639 --> 0:02:51.760 company of Silvergate. On Friday announced that they had to 0:02:51.800 --> 0:02:55.840 suspend their flagship product, calls the same Payments neat Work, 0:02:55.919 --> 0:02:58.200 which is the product that attracted a lot of these 0:02:58.280 --> 0:03:01.680 cryptal firms to onboard with Silvergate in the first place. 0:03:01.960 --> 0:03:05.000 The company couldn't file their annual report before and they 0:03:05.240 --> 0:03:08.320 also talk about the risk of being investigated by the 0:03:08.360 --> 0:03:12.560 Justice Department. So we know that now the bank has 0:03:12.720 --> 0:03:15.240 announced that they're going to liquidate. They're going to an 0:03:15.320 --> 0:03:18.920 orderly wind dine or windowne, and then their plan is 0:03:18.960 --> 0:03:22.760 to be able to fully repay the deposits to their customers, 0:03:23.000 --> 0:03:25.800 which is a good news for the cryptal industry because 0:03:25.840 --> 0:03:30.400 the contagent risk will be much lower. And yet it's interesting, 0:03:30.440 --> 0:03:33.120 even though you brace yourself, you see such a market 0:03:33.120 --> 0:03:36.280 moves that spells out and also not just in Silvergate, 0:03:36.320 --> 0:03:39.000 but other crypto friendly banks I'm thinking of the like 0:03:39.360 --> 0:03:42.440 Signature Bank and also coin based on the downside, yes, 0:03:42.600 --> 0:03:46.120 so the biggest challenge for the cryptal industry now is 0:03:46.160 --> 0:03:49.080 that their players are finding it very difficult to get 0:03:49.120 --> 0:03:52.800 access to banking services. Silvergate was one of the very 0:03:52.800 --> 0:03:56.320 few banks in the space that were friendly with crypto companies, 0:03:56.480 --> 0:03:58.560 that were willing to open a bank account with them 0:03:58.720 --> 0:04:02.480 and take deposits from crypto firms. As you mentioned, Signature 0:04:02.560 --> 0:04:04.600 is one of the other banks, but that bank has 0:04:04.600 --> 0:04:08.480 already announced their plan to scale back from serving crypto customers. 0:04:08.800 --> 0:04:12.920 So right now there's concerns among crypto players about how 0:04:12.960 --> 0:04:17.800 they could exactly transfer US dollar while finding a banking 0:04:17.839 --> 0:04:21.360 partner in the US. Chiang running to set for us. 0:04:21.520 --> 0:04:24.440 We appreciate it. I made all the fallout across crypto 0:04:25.279 --> 0:04:28.800 from the risky assets of crypto too. Of perhaps some 0:04:28.920 --> 0:04:32.839 would say in more bread and butter cash or money 0:04:32.880 --> 0:04:35.200 market funds. Apparently they're all the rage at the moment 0:04:35.279 --> 0:04:37.560 as we move away from the likes of crypto. Liz 0:04:37.600 --> 0:04:39.599 Young is the perfect person to discuss all of this 0:04:39.720 --> 0:04:42.240 head in. That's a strategy over it so far. Just 0:04:42.320 --> 0:04:44.320 talk us through at the moment moving away from the 0:04:44.720 --> 0:04:48.360 crypto sphere into good old equities, bonds, and indeed cash instruments. 0:04:48.680 --> 0:04:50.880 Where are people gravitating as we think about a higher 0:04:50.920 --> 0:04:55.240 interest rate environment. Yeah, so An, I don't know that 0:04:55.240 --> 0:04:57.839 people are necessarily taking money out of crypto and putting 0:04:57.880 --> 0:05:01.000 it into cash instruments. I think a very different risk 0:05:01.080 --> 0:05:04.680 tolerance there. But we are in a period where you 0:05:04.720 --> 0:05:07.680 can look at things like the six month treasury yield 0:05:07.800 --> 0:05:11.360 above five point two percent, a two year treasury yield 0:05:11.360 --> 0:05:15.120 above five percent, and you're getting a really good yield 0:05:15.279 --> 0:05:18.240 for parking your money for a pretty short period of time. 0:05:18.480 --> 0:05:20.760 And I would say, as an investor, even a long 0:05:20.880 --> 0:05:23.480 term investor, what you want to look for over the 0:05:23.520 --> 0:05:25.960 short term, no matter what the instrument is that you're 0:05:25.960 --> 0:05:30.120 investing in. You want to look for very obvious dislocations 0:05:30.200 --> 0:05:32.960 in markets, and right now I do think that this 0:05:33.040 --> 0:05:35.920 is a time where the treasury market is seeing a 0:05:35.960 --> 0:05:37.880 brief period. I don't know that I would call it 0:05:37.920 --> 0:05:40.640 a dislocation necessarily, but there is a little bit of 0:05:40.680 --> 0:05:43.480 a disconnect between the treasury market and the equity market. 0:05:43.720 --> 0:05:46.400 So this is an opportunity in treasuries to get a 0:05:46.440 --> 0:05:50.839 yield that we may not see again for many years. Ladies, 0:05:50.880 --> 0:05:53.680 thank you for joining us on this International Women's Day. 0:05:53.720 --> 0:05:55.839 We were just saying then as that one hundred on 0:05:55.880 --> 0:06:00.080 a three day basis pre during and off to Pow 0:06:00.720 --> 0:06:02.560 And I ask you where does that leave us as 0:06:02.600 --> 0:06:05.920 we value tech shares in particular, this kind of reset 0:06:06.400 --> 0:06:09.960 of how we think about rates, bigger increments and high 0:06:10.040 --> 0:06:14.120 for longer, right right, Well, what happened this week is 0:06:14.200 --> 0:06:17.320 Jerome Powell did it again. His comments moved markets, and 0:06:17.560 --> 0:06:20.360 he moved them pretty quickly and in a big way, 0:06:20.400 --> 0:06:22.680 and in a lot of different ways. So what we 0:06:22.839 --> 0:06:25.760 heard from him was we put the possibility back on 0:06:25.800 --> 0:06:28.120 the table, not even just on the table, but now 0:06:28.160 --> 0:06:30.960 it's looking to have almost a seventy percent chance of 0:06:31.000 --> 0:06:33.640 maybe a fifty basis point hike at the next meeting, 0:06:33.680 --> 0:06:36.520 which is just a couple weeks away. So what it 0:06:36.560 --> 0:06:39.200 did for markets is it now has to force us 0:06:39.200 --> 0:06:43.920 to digest the possibility of maybe not that steady sort 0:06:43.960 --> 0:06:47.560 of trickle out of hikes that we were expecting. One 0:06:47.600 --> 0:06:50.880 of the things that I found peculiar about this statement 0:06:51.279 --> 0:06:53.479 was that the Fed had continued to say, we're not 0:06:53.520 --> 0:06:55.839 going to repeat the same mistakes of the late seventies 0:06:55.839 --> 0:06:57.840 early eighties. We're not going to go through this stop 0:06:57.920 --> 0:07:01.440 start cycle. This sort of would be similar to a 0:07:01.560 --> 0:07:04.320 stop start cycle. So now markets are forced to digest 0:07:04.400 --> 0:07:06.880 kind of a jagged rate path, and it's going to 0:07:06.960 --> 0:07:09.360 be more difficult both in the bond market and the 0:07:09.400 --> 0:07:12.120 stock market. The bond market is having a hard time 0:07:12.120 --> 0:07:14.760 with that, which is why we're seeing over one hundred 0:07:14.760 --> 0:07:16.920 basis point in version now between the two year and 0:07:16.920 --> 0:07:19.960 the ten year yield. Liz, you're a chart watcher, and 0:07:20.000 --> 0:07:23.360 I've spent all day with Caroline agonizing which chart am 0:07:23.360 --> 0:07:25.640 I going to show? And in the end I decided, 0:07:25.720 --> 0:07:28.000 you know what, I'm just not going to show a chart. 0:07:28.040 --> 0:07:30.880 I'm just going to ask a question. You're really focused 0:07:30.880 --> 0:07:33.520 in zeroed in on jobs data, and what we've been 0:07:33.560 --> 0:07:36.880 talking about in the tech sector is the big headlines 0:07:36.880 --> 0:07:40.560 around layoffs, but the data doesn't necessarily reflect all of 0:07:40.560 --> 0:07:43.120 those people being out of work. How are you reading 0:07:43.480 --> 0:07:48.080 the tech headlines when it comes to layoffs. Well, I 0:07:48.120 --> 0:07:50.200 think what happened with the tech headlines is that they 0:07:50.280 --> 0:07:53.680 hurt sentiment in the short term. But the reality is 0:07:53.720 --> 0:07:56.080 that tech jobs didn't make up a huge portion of 0:07:56.080 --> 0:07:59.240 the labor force, and or people that were laid off 0:07:59.360 --> 0:08:02.400 weren't going to claim unemployment, So we didn't see it 0:08:02.640 --> 0:08:05.280 in the data. We didn't see it in the headline 0:08:05.280 --> 0:08:08.880 stuff that we would normally expect to. However, we got 0:08:08.920 --> 0:08:11.720 some data today, So the Jolts data, which is job 0:08:11.760 --> 0:08:15.720 openings and quit rates. The Jolts data is still strong 0:08:15.760 --> 0:08:18.080 in the sense that there are a lot of jobs open. 0:08:18.160 --> 0:08:21.320 There's still a five million person gap between the amount 0:08:21.360 --> 0:08:24.000 of jobs available and the people who are unemployed, so 0:08:24.040 --> 0:08:28.080 the labor market remains tight. Make no mistake. However, there 0:08:28.160 --> 0:08:30.600 was something under the surface in that Jolts data. If 0:08:30.600 --> 0:08:34.560 you look at construction jobs open that fell month over 0:08:34.640 --> 0:08:38.840 month by forty nine percent. That is a huge drop. Now, 0:08:39.040 --> 0:08:41.200 I don't want to rule out the possibility that it 0:08:41.240 --> 0:08:43.839 was seasonal, or that it was just an anomaly because 0:08:43.840 --> 0:08:46.680 it was January. That could be the case, but that 0:08:46.800 --> 0:08:48.719 is a very big drop. And the reason you want 0:08:48.760 --> 0:08:51.640 to watch construction jobs is because they do tend to 0:08:51.760 --> 0:08:56.400 lead the overall labor market. So if that becomes somewhat 0:08:56.440 --> 0:08:58.520 of a canary in the coal mine, it's something that 0:08:58.520 --> 0:09:00.760 we're going to look back on and say that was 0:09:01.040 --> 0:09:04.560 where the break started to happen. I Meanwhile, the two's tends, 0:09:04.840 --> 0:09:07.559 the inversion of a yield curve has been screaming too many. 0:09:07.920 --> 0:09:10.760 The recession is in the CODs for a while. Ultimately, 0:09:10.840 --> 0:09:13.559 if you're looking at putting money to work in more 0:09:13.640 --> 0:09:20.560 growth orientated names, is now the timeless, straightforward growth names 0:09:20.559 --> 0:09:23.000 I would probably not buy. If you were going to 0:09:23.080 --> 0:09:25.360 just paint with a broadbrush, I would not do that 0:09:25.520 --> 0:09:28.640 right now, particularly because we saw such a big rally 0:09:29.000 --> 0:09:31.679 from the start of the year and those valuations did 0:09:31.720 --> 0:09:35.760 get more inflated. Now, regardless of what happens with market 0:09:35.760 --> 0:09:39.079 direction from here, in any bear market, there still are 0:09:39.200 --> 0:09:42.079 names that do better than other names, so you could 0:09:42.280 --> 0:09:47.000 index towards high quality growth names, high cash flow generating 0:09:47.000 --> 0:09:49.560 growth names. One of the places that you can look 0:09:49.559 --> 0:09:52.360 for growth is in the healthcare space, and particularly if 0:09:52.360 --> 0:09:55.080 you move down the market cap spectrum so into the 0:09:55.120 --> 0:09:59.359 smaller cap names. They are heavily in biotech and pharma. 0:09:59.440 --> 0:10:02.600 You're going to get growth opportunity in those names without 0:10:02.679 --> 0:10:06.040 the rate sensitivity that you would get in classic technology, 0:10:06.080 --> 0:10:09.320 communications and consumer discretionary. So if you really want growth 0:10:09.320 --> 0:10:12.120 in the portfolio, you could look there. It's not top 0:10:12.160 --> 0:10:14.760 on my list right now of things to buy, mostly 0:10:14.800 --> 0:10:17.320 because a lot of times when you look at what 0:10:17.440 --> 0:10:19.719 leads you into a market peak, it's not the same 0:10:19.760 --> 0:10:22.040 stuff that brings you out of a market trough. So 0:10:22.320 --> 0:10:24.439 I do expect that there's going to be a rotation 0:10:24.480 --> 0:10:27.240 and we're going to see different sectors lead on the 0:10:27.240 --> 0:10:31.120 other side of this so far ahead of investment strategy. 0:10:31.200 --> 0:10:33.400 Liz Young so smart and Marky's also ask you on 0:10:33.440 --> 0:10:38.040 Twitter which conference has the stronger quarterbacks AFC or otherwise. 0:10:38.080 --> 0:10:39.680 I don't know what that was about, but I'm just 0:10:39.760 --> 0:10:42.200 helping you out if the moment tell tell you what 0:10:42.240 --> 0:10:45.679 it's about. I'm a Green Bay packer, but I'm from Wisconsin. 0:10:45.920 --> 0:10:48.920 I'm from Wisconsin. Green Bay Packers. Aaron Rodgers is right 0:10:48.920 --> 0:10:52.400 now in the midst of a big decision of staying. 0:10:52.400 --> 0:10:54.240 It sounds like either staying with the packers are going 0:10:54.240 --> 0:10:56.760 to the jets. It would be NFC to AFC. That's 0:10:56.800 --> 0:10:58.679 what the question was about. All right, all right, you're 0:10:58.720 --> 0:11:01.080 telling a sort of fair weather forty nine ers fan. 0:11:01.160 --> 0:11:04.160 I'm not that interested. Thank you for coming to the 0:11:04.240 --> 0:11:07.240 program so far ahead of investment strategy is young now. 0:11:07.559 --> 0:11:10.600 In other news, Uber is exploring whether to spin off 0:11:10.880 --> 0:11:14.360 it's Uber Freight Logistics arm in a sale or as 0:11:14.400 --> 0:11:18.320 a separate, publicly traded company. According to sources, the move 0:11:18.440 --> 0:11:22.480 would allow CEO Diracostra Shahi to focus on the ride 0:11:22.559 --> 0:11:25.559 hailing and food delivery units. Uber launched the freight division 0:11:25.800 --> 0:11:29.920 in twenty seventeen. Shares popped in after hours on the news, 0:11:30.600 --> 0:11:33.800 though a decision is not imminent. Carrow, according to sources. 0:11:34.559 --> 0:11:37.440 Another one of those stories that you've been busy helping 0:11:37.520 --> 0:11:49.360 on overall, ed La louis, thank you time now for 0:11:49.440 --> 0:11:53.920 talking tech. Japanese lunar exploration startup ice Space, which partnered 0:11:54.080 --> 0:11:57.800 with Elon Musk's SpaceX to deliver its lander to the Moon, 0:11:58.200 --> 0:12:01.200 will list on the Tokyo Stock it Changes Growth market 0:12:01.520 --> 0:12:04.400 April twelfth. It's market cap at the time of IPO 0:12:04.440 --> 0:12:08.000 would be roughly nineteen point two billion yen according to 0:12:08.040 --> 0:12:12.520 Bloomberg calculations, that's about one hundred and forty million US dollars. 0:12:12.679 --> 0:12:15.680 And on this International Women's Day, JP Morgan has some 0:12:15.800 --> 0:12:19.440 news that it's calling shocking. Only five point seven percent 0:12:19.679 --> 0:12:24.239 of startups in Asia Pacific are led by female entrepreneurs, 0:12:24.240 --> 0:12:28.559 a percentage that stayed stagnant for five years. Private firms 0:12:28.600 --> 0:12:31.679 in Asia powered by women include Unicorn, Air, walll X, 0:12:31.720 --> 0:12:34.840 which ranked first on a list compiled by JP Morgan's 0:12:34.840 --> 0:12:37.640 private bank, and Nuns and Young. The rankings took into 0:12:37.679 --> 0:12:43.080 consideration factors like funding, investor confidence, and operational and financial components. 0:12:43.080 --> 0:12:47.280 But worrying data, Carr, Yeah, and it's worrying because it's 0:12:47.320 --> 0:12:51.480 relatively stagnant. So too is money being allocated to female 0:12:51.640 --> 0:12:55.520 entrepreneurs from VC month funds. About two percent more money 0:12:56.040 --> 0:12:58.400 was put to work in that direction in twenty twenty one, 0:12:58.440 --> 0:13:01.199 and it was the same back in fourteen, for example. 0:13:01.240 --> 0:13:02.640 We can dig into that found I'll just want to 0:13:02.640 --> 0:13:04.240 bring up a pole that ed you and I put 0:13:04.240 --> 0:13:07.400 to our own audience today asking whether they think maybe 0:13:07.440 --> 0:13:09.760 more female entrepreneurs will be inspired to go out there 0:13:10.040 --> 0:13:13.280 and to build and to get money. And I'm glad 0:13:13.280 --> 0:13:18.560 to say no, oh, generally you are negative, no forty 0:13:18.559 --> 0:13:21.560 one percent and no Doogles. One of the people doing 0:13:21.559 --> 0:13:24.319 the work trying to change that. Founding partner of Female 0:13:24.360 --> 0:13:28.920 Founders Fund, which allocates towards businesses built by diverse founders, 0:13:29.800 --> 0:13:31.480 just taught to us out at the moment about whether 0:13:31.480 --> 0:13:33.760 you are that pessimistic or not. So first of all, 0:13:33.800 --> 0:13:36.160 thanks so much for having me, Caroline, and Happy International 0:13:36.200 --> 0:13:38.800 Women's Day. I think there's a couple of different ways 0:13:38.840 --> 0:13:42.119 to look at the data. So obviously, you know, unfortunately 0:13:42.240 --> 0:13:45.560 we haven't seen huge increases in the amount of overall 0:13:45.600 --> 0:13:49.319 funding going towards women, but we track different types of metrics. 0:13:49.320 --> 0:13:52.960 So for example, in the history of the NASDEC, there 0:13:53.000 --> 0:13:57.200 had been three IPOs led by female founders before twenty 0:13:57.240 --> 0:14:01.000 twenty one. In that year alone, there were seven IPOs 0:14:01.080 --> 0:14:04.200 led by women. So I think that, you know, as 0:14:04.200 --> 0:14:06.400 a fund that invests in female founders, we have to 0:14:06.400 --> 0:14:09.839 remain optimistic and it's even more important in terms of 0:14:09.880 --> 0:14:12.240 the work that we do. But we are seeing more 0:14:12.480 --> 0:14:15.440 female CEOs that are taking companies public that are raising 0:14:15.520 --> 0:14:20.280 large growth rounds. So overall, you know, I'm cautiously optimistic, 0:14:20.320 --> 0:14:23.960 and you're building that network effect holding summits where you 0:14:24.000 --> 0:14:27.040 gather an awful lot of female entrepreneurs and advisors together. 0:14:27.080 --> 0:14:28.960 I think it was about ten million dollars worth of 0:14:29.040 --> 0:14:31.640 enterprise value in one room just last week for one 0:14:31.640 --> 0:14:35.360 of these events. Where therefore are you allocating money? What 0:14:35.480 --> 0:14:39.120 exciting problems are these female founders trying to solve? Yeah, 0:14:39.120 --> 0:14:41.720 so great question. A couple of the areas that we're 0:14:41.720 --> 0:14:45.720 excited about this year, in particular, so as early investors 0:14:45.760 --> 0:14:48.920 in naven Clinic, I would say digital healthcare as a 0:14:49.000 --> 0:14:52.400 category is an area where we've invested heavily in the 0:14:52.400 --> 0:14:55.280 past and can continue to be excited. I think the 0:14:55.320 --> 0:14:58.160 difference this year is that historically we've seen a lot 0:14:58.160 --> 0:15:02.560 of founders build more curity solutions, and now we're seeing 0:15:02.680 --> 0:15:07.040 more in the preventative approach. So really founders leveraging data 0:15:07.200 --> 0:15:12.200 to help more at risk populations take early action. Great 0:15:12.200 --> 0:15:14.920 example of that within our portfolio as a company called Gabby, 0:15:15.160 --> 0:15:18.000 which has leveraged data to be able to help women, 0:15:18.840 --> 0:15:22.000 particularly those who are more at high risk, take earlier 0:15:22.880 --> 0:15:26.760 and more preventative approaches to just making sure that you 0:15:26.800 --> 0:15:30.000 know they're they're kind of tracking that you know, within 0:15:30.040 --> 0:15:33.960 their their healthcare risk for example, Yes, exactly, so breast cancer. 0:15:34.120 --> 0:15:37.400 I would say another category within healthcare that we're seeing 0:15:37.440 --> 0:15:41.479 a lot of activity in is longevity and really founders 0:15:41.640 --> 0:15:45.040 looking at finding ways to slow down or reverse the 0:15:45.080 --> 0:15:50.480 aging process, leveraging biometric data. Couple companies in that space 0:15:50.560 --> 0:15:54.040 that we've been tracking, so Pronovo, which does early cancer 0:15:54.120 --> 0:15:58.240 detection through screening. We've also seen two female founded companies, 0:15:58.600 --> 0:16:02.960 Modern Age and tal Health, that are again leveraging at 0:16:03.000 --> 0:16:07.480 home testing to help suggest, you know, supplements and different 0:16:07.480 --> 0:16:10.680 ways in which you know their patients can take more 0:16:11.280 --> 0:16:14.880 preventative approaches to aging. I know, I want to talk 0:16:14.880 --> 0:16:17.240 about kind of the forward vision. We've reported a lot 0:16:17.280 --> 0:16:21.480 about very senior leaders, women leaders in Silicon Valley and beyond, 0:16:21.520 --> 0:16:25.560 Susan Wojiki or Cheryl Samberg leaving their roles. You're investing 0:16:25.600 --> 0:16:28.000 at the earliest stage of the curve. But how important 0:16:28.080 --> 0:16:31.160 is that to kind of see a pathway to leading 0:16:31.240 --> 0:16:34.440 big tech companies? Yeah? Absolutely, I mean, I think the 0:16:34.480 --> 0:16:36.760 fact that all of these exits happened, you know, within 0:16:36.760 --> 0:16:40.280 a short period of time is definitely troubling. But at 0:16:40.280 --> 0:16:42.200 the same time, you know, I think there's a lot 0:16:42.240 --> 0:16:45.320 of kind of younger talent, and I'm hopeful that you know, 0:16:45.320 --> 0:16:48.840 you'll start to see these those women kind of rise 0:16:49.320 --> 0:16:55.040 amongst the ranks, hopefully relatively soon. Bill Bigger, Better Businesses 0:16:55.240 --> 0:16:58.400 on Adoogle founding partner of female founders found. What a 0:16:58.480 --> 0:17:00.560 joy to have you with us. We thank you so much. 0:17:00.800 --> 0:17:03.840 Plenty more to come in terms of public markets head yeah, 0:17:03.840 --> 0:17:07.000 and also another strong woman leader in Silicon Valley. Coming up, 0:17:07.040 --> 0:17:09.680 we're going to speak about Adobe opening a brand new 0:17:09.680 --> 0:17:14.399 office tower in California, but also pledging no mass layoffs. 0:17:14.440 --> 0:17:16.480 This seri at a time where it's tech peers are 0:17:16.520 --> 0:17:20.399 doing exactly that. Our exclusive interview next with Adobe's chief 0:17:20.400 --> 0:17:41.480 people officer, Gloria Chen. This is Bloomberg. So this is 0:17:41.480 --> 0:17:44.399 a case of bucking the trend in technology. Adobe is 0:17:44.440 --> 0:17:47.080 opening a brand new eighteen story tower in San Jose 0:17:47.240 --> 0:17:50.280 today with room for thousands of new staff as the 0:17:50.320 --> 0:17:52.800 rest of the sector simply cuts back on both jobs 0:17:53.000 --> 0:17:56.720 and real estate. I spoke exclusively with Adobe's chief people officer, 0:17:56.960 --> 0:18:03.760 Gloria Chen inside what they've dubbed the Tower have listened. Well, 0:18:03.800 --> 0:18:07.159 the space that we've designed here is not your traditional 0:18:07.200 --> 0:18:12.440 office space of desks in cubicles, right. We have created 0:18:12.440 --> 0:18:15.920 over four hundred different kinds of working environments, so everything 0:18:16.000 --> 0:18:22.760 from a large town hall to team neighborhoods, collaboration spaces, 0:18:22.800 --> 0:18:26.359 focus spaces. So it's a lot of different uses under 0:18:26.400 --> 0:18:30.520 one roof. And so we're actually committed to continuing to 0:18:30.560 --> 0:18:33.760 grow here. We're here for the long term, but this 0:18:33.880 --> 0:18:37.439 is new space for new ways of working. Does that 0:18:37.520 --> 0:18:40.639 growth include you know, a hope to hire, you know 0:18:40.760 --> 0:18:43.160 right now, it's not just pulling back in real estate 0:18:43.160 --> 0:18:46.320 we see from big tech. We see layoffs. Adobe at 0:18:46.320 --> 0:18:50.520 the end of last year did a small cut. You know, 0:18:51.400 --> 0:18:53.720 those are two kind of in congress ideas announcing a 0:18:53.760 --> 0:18:58.320 new space, a beautiful new tower with capacity, while around 0:18:58.359 --> 0:19:02.360 you we're seeing cutbacks well. And as you know, our 0:19:02.440 --> 0:19:05.959 products and tools power the digital world. We're coming from 0:19:06.000 --> 0:19:09.720 a position of strength. So we're posting great financial results. 0:19:09.720 --> 0:19:13.360 We had great earnings last quarter, and we are continuing 0:19:13.400 --> 0:19:17.520 to grow. We're investing now in this market. We are 0:19:17.680 --> 0:19:21.760 being judicious with managing expenses, we're judicious in hiring, but 0:19:21.880 --> 0:19:24.879 we are continuing to grow and we're investing in the 0:19:24.920 --> 0:19:27.960 space to support our employee base. Here you are the 0:19:28.040 --> 0:19:30.159 chief people officer, and there's a question I want to 0:19:30.160 --> 0:19:32.840 ask you that about your job day to day, and 0:19:32.840 --> 0:19:35.399 it is about FIGMA. But my question is, when you 0:19:35.480 --> 0:19:40.480 are potentially bringing in an outside organization new people, how 0:19:40.520 --> 0:19:44.000 do you match those cultures? How do you integrate within 0:19:44.040 --> 0:19:45.879 your existing culture, Because that's a big part of what 0:19:45.880 --> 0:19:48.440 you're announcing with the Founder's Tower as well. It's a 0:19:48.520 --> 0:19:54.680 renewal and new sets of kind of cultural norms and rules. Yes, 0:19:55.080 --> 0:19:58.200 so we are so since you mentioned that, you know, 0:19:58.280 --> 0:20:02.080 along with our fortieth anniversary did roll out our new values. 0:20:02.640 --> 0:20:06.399 And it's really as we think about in this particular 0:20:06.480 --> 0:20:11.840 moment in time, having celebrated our fortieth anniversary, moving forward 0:20:11.880 --> 0:20:14.879 into this next decade of growth, really thinking about how 0:20:14.920 --> 0:20:18.159 do we prepare for the future and for future growth 0:20:18.680 --> 0:20:22.520 as it relates to FIGMA and actually in general, all 0:20:22.560 --> 0:20:26.280 of our acquisitions we do look at not only strategic fit, 0:20:26.600 --> 0:20:30.399 financial sense, but also cultural fit. So that's something that 0:20:30.440 --> 0:20:35.000 factors into acquisitions we make ahead of actually making those decisions, 0:20:35.359 --> 0:20:37.800 and so that's very very important to us. Can you 0:20:37.840 --> 0:20:40.080 guarantee at this stage of twenty twenty three, that there 0:20:40.119 --> 0:20:43.280 won't be more layoffs, that you won't downsize in other areas. 0:20:43.960 --> 0:20:47.160 So we are coming from a position of strength. We've 0:20:47.200 --> 0:20:51.040 posted great earnings, we're growing profitably, and so how we're 0:20:51.040 --> 0:20:55.119 really managing is to be prudent about our investments, be 0:20:55.200 --> 0:21:00.000 prudent about hiring. We are committed not having company wide layoffs. 0:21:02.040 --> 0:21:04.399 That was Adobe's chief people officer, Gloria Chen, and a 0:21:04.440 --> 0:21:07.560 promise Caroline, no company wide layoffs this year. Were you 0:21:07.600 --> 0:21:10.120 surprised by that? I mean, it feels to be going 0:21:10.160 --> 0:21:12.920 against the grain, doesn't it. Ultimately she sort of vindicated 0:21:12.960 --> 0:21:15.520 it with why the digital tools they build and they're 0:21:15.520 --> 0:21:17.600 not going anywhere, even within and perhaps more of a 0:21:17.600 --> 0:21:21.040 recessionary environment. But when you think about the building nature 0:21:21.040 --> 0:21:24.760 of something you're reporting around Meta, just enunciate for us 0:21:24.880 --> 0:21:27.679 whether you think really that can be done on one 0:21:27.720 --> 0:21:29.720 side by Adobe. Meanwhile, we see what we're about to 0:21:29.720 --> 0:21:32.760 brace ourselves for with Meta. Yeah, part of the anxiety 0:21:32.760 --> 0:21:34.320 it Meta is they're just they don't know if the 0:21:34.359 --> 0:21:36.359 economy is going to get worse, if the ad market 0:21:36.359 --> 0:21:39.480 will get mersed. That Gloria Chen's point was they're being prudent, 0:21:39.760 --> 0:21:42.520 they're being safe. Interesting, we didn't even cover it in 0:21:42.560 --> 0:21:46.280 that section, but they're also promoting hybrid working. Having just 0:21:46.359 --> 0:21:50.320 opened a really expensive building, Well maybe you could just 0:21:50.359 --> 0:21:53.680 really enjoy those sort of added extras for three days 0:21:53.720 --> 0:22:04.399 of the week. It's the control of the data to 0:22:04.480 --> 0:22:07.280 conduct all sorts of big data operations. It's the control 0:22:07.320 --> 0:22:11.800 of the recommendation algorithm, which allows them to conduct influence operations. 0:22:12.240 --> 0:22:14.879 It's the control of the software which allows them to 0:22:14.960 --> 0:22:18.800 then have access to millions of devices. As you put 0:22:18.800 --> 0:22:21.280 all those three things together and again come back to 0:22:21.320 --> 0:22:24.399 the starting point, which is this is a tool that 0:22:24.600 --> 0:22:28.800 is ultimately within the control of the Chinese government, and 0:22:29.600 --> 0:22:34.119 to me, it screams out with national security concerns. Welcome 0:22:34.119 --> 0:22:37.160 back to me technology. I'm Kline had aial and I'm 0:22:37.240 --> 0:22:40.840 ed Lovelow in San Francisco. Some of FBI Director Chrisopher 0:22:40.880 --> 0:22:44.000 Ray's testimony at a Senate hearing on Global threats, where 0:22:44.040 --> 0:22:48.800