WEBVTT - Paramount CEO Is Out and Amazon, AMD Report Earnings 0:00:02.440 --> 0:00:08.520 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.840 --> 0:00:13.119 From Mahart where Innovation, money and power Collie in Silicon Valley, NBN. 0:00:13.480 --> 0:00:17.520 This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 0:00:31.040 --> 0:00:33.400 I'm Caroline Hein and Bloomberg's World headquarters in New York 0:00:33.720 --> 0:00:35.560 and I'm Ed Ludlow in San Francisco. 0:00:35.880 --> 0:00:37.720 This is Bloomberg Technology. 0:00:37.280 --> 0:00:40.519 Coming up paramount for places at CEO as M and 0:00:40.560 --> 0:00:42.440 a buzz over shadows results. 0:00:42.560 --> 0:00:44.640 Full coverage ahead, plus. 0:00:44.560 --> 0:00:48.200 We push ahead to result from Amazon, AMD and Pinterest, 0:00:48.360 --> 0:00:50.199 all reporting after the belt. 0:00:49.920 --> 0:00:53.080 And former finance CEO at CZ heads. 0:00:52.880 --> 0:00:55.720 To court as prosecutors seek three years in prison. Will 0:00:55.760 --> 0:00:58.160 bring you the latest headlines as they cross, but first 0:00:58.640 --> 0:01:00.720 a check in on these markets and look, the macro 0:01:00.800 --> 0:01:03.400 picture not looking so pretty today and it forces stocks lower. 0:01:03.600 --> 0:01:05.760 You get well the cost of labor at the moment, 0:01:05.800 --> 0:01:09.000 the ECI number coming in higher than expected, and well 0:01:09.120 --> 0:01:11.440 overall confidence from a consumer plunging. 0:01:11.600 --> 0:01:13.039 That means we're not looking so pretty. 0:01:13.080 --> 0:01:15.640 Heading into a Federal Reserve meeting that of course ends tomorrow, 0:01:15.800 --> 0:01:17.760 and we hear from Jaypower off by four ten percent 0:01:17.800 --> 0:01:20.600 on the NASDAK tenure yield pushing higher of course, where 0:01:20.640 --> 0:01:22.240 boring costs rise, So stock's full. 0:01:22.319 --> 0:01:24.679 We're at four point sixty six, that's what usually the 0:01:24.720 --> 0:01:25.200 trend is. 0:01:25.400 --> 0:01:28.360 We're seeing dollar stronger versus the Japanese end today, a 0:01:28.400 --> 0:01:31.720 completely flip reverse from yesterday. Looks as though Japan did 0:01:31.720 --> 0:01:34.120 indeed have some intervention into the markets to try and 0:01:34.160 --> 0:01:36.760 prop up the yen. For now it's weaker against the 0:01:36.880 --> 0:01:38.520 US dollar. Let's move on to have a look at 0:01:38.520 --> 0:01:41.280 what's also we could get versus the US dollar. Bitcoin 0:01:41.360 --> 0:01:43.440 along with other risk asset said on the downside, rob 0:01:43.440 --> 0:01:46.080 by two point percent, sixty one thousand. This is wrapping 0:01:46.160 --> 0:01:48.960 up to be a pretty poor month of April, the worst. 0:01:48.920 --> 0:01:50.840 Since, of course the FTX scandal. 0:01:51.320 --> 0:01:54.160 Down somewhat sixteen percent over the course of April for bitcoin, 0:01:54.200 --> 0:01:55.880 and indeed we're seeing a pretty. 0:01:55.640 --> 0:01:56.840 Poor month for stocks. 0:01:56.880 --> 0:02:00.000 More overall, Nasdaq I think having its worst months since October. 0:02:00.120 --> 0:02:01.440 What do you think of the micro today? 0:02:02.160 --> 0:02:03.720 Okay, so there's a lot going on real quick. 0:02:03.760 --> 0:02:06.920 Tesla is down more than four percent, the information reporting 0:02:07.160 --> 0:02:10.680 the entire supercharger team is gone. But remember twenty four 0:02:10.720 --> 0:02:14.480 hours ago in Monday session, fifteen percent gain, biggest jump 0:02:14.520 --> 0:02:18.160 since March of twenty twenty one on FSD tentative approval 0:02:18.160 --> 0:02:20.519 on China. We'll dig into that later. Then there's earnings 0:02:20.560 --> 0:02:23.520 AMD after the Bell. We know the story how well, 0:02:24.000 --> 0:02:26.440 but above or below is the mi I three hundred 0:02:26.639 --> 0:02:29.960 x done relative to expectations. Then you've got Amazon after 0:02:30.040 --> 0:02:33.760 Alphabet and Microsoft Cloud growth driven by AI. We know 0:02:33.840 --> 0:02:36.000 those stories and were look ahead to that later in 0:02:36.040 --> 0:02:40.160 the program. Our top story is Paramount Global, so CEO 0:02:40.200 --> 0:02:44.080 Bob Bakish is gone, replaced by basically a committee of executives. 0:02:44.840 --> 0:02:47.960 They release earnings. No one seems to care. The question 0:02:48.040 --> 0:02:49.679 is about M and A in the future. The stockdown 0:02:49.680 --> 0:02:52.519 three point three percent. Let's go right to Bloomberg Intelligence 0:02:52.560 --> 0:02:55.160 and this guita rangon Nathan to try and understand what's 0:02:55.160 --> 0:02:57.280 going on. I love the kind of headline of your 0:02:57.320 --> 0:03:00.000 research overnight, basically earnings and non. 0:02:59.840 --> 0:03:01.480 Av I on M and A. 0:03:01.720 --> 0:03:04.280 But just summarize what last night was like for you 0:03:04.360 --> 0:03:05.160 and what you learned. 0:03:05.680 --> 0:03:09.560 Yes, yeah, the earnings call ed was was kind of 0:03:09.680 --> 0:03:12.520 really bizarre. I mean it was, you know, a seven 0:03:12.560 --> 0:03:15.360 to eight minute call, basically one of the shortest I've 0:03:15.360 --> 0:03:17.520 ever seen in the history of media earnings. There were 0:03:17.560 --> 0:03:20.640 no questions from the analyst or the investment community, and 0:03:20.720 --> 0:03:23.720 it was just basically the CFO outlining the details of 0:03:23.760 --> 0:03:26.880 the quarter, and you know, the three person committee kind 0:03:26.919 --> 0:03:30.360 of giving their little spiel. But I think yes, there 0:03:30.360 --> 0:03:34.160 were some encouraging elements from the first quarter results, but 0:03:34.240 --> 0:03:37.880 of course M and A is stop and center overall. 0:03:37.920 --> 0:03:40.600 I think that the key takeaway is that this is 0:03:40.760 --> 0:03:43.760 peak uncertainty right now at Paramount. We really don't know 0:03:43.760 --> 0:03:46.200 what's happening with ownership. We don't know what's happening with 0:03:46.640 --> 0:03:49.120 leadership other than there is this committee. But obviously it's 0:03:49.120 --> 0:03:52.320 a stop gap arrangement and there's no clue in terms 0:03:52.360 --> 0:03:54.880 of what the future direction or the strategy is. 0:03:55.280 --> 0:03:58.280 Have you ever experienced this, Ketha, this lack of clarity 0:03:58.320 --> 0:04:01.040 coming from leadership, coming from the company itself. 0:04:02.160 --> 0:04:05.000 Yeah, I mean this is kind of one of a 0:04:05.120 --> 0:04:09.840 kind situation, Caroline. I mean, obviously, Sherry Redstone here is 0:04:09.880 --> 0:04:12.840 desperately trying to get a deal done with sky Dance, 0:04:12.880 --> 0:04:16.120 which is why she had to get rid of Barb Bakish, 0:04:16.160 --> 0:04:20.000 who was opposing the deal pretty vocally from the get go. 0:04:21.080 --> 0:04:23.120 You know, there is a looming deadline. 0:04:23.160 --> 0:04:26.240 May third is the day which is Friday is the 0:04:26.320 --> 0:04:29.359 day when the period of exclusive negotiations ends, and so 0:04:29.400 --> 0:04:31.360 they're trying to do everything in their power to get 0:04:31.760 --> 0:04:33.520 to that finish line as quickly as possible. 0:04:34.760 --> 0:04:37.839 Well, we dig into what is a very evolving story, 0:04:37.880 --> 0:04:41.240 but ultimately with some decent streaming numbers come from Paramount, 0:04:41.279 --> 0:04:42.960 we want to dig into all of that. First, we 0:04:43.040 --> 0:04:47.000 thanks Bloomberg Intelligence ANALYSTKEITHA. Rangnath, and let's continue the conversation 0:04:47.040 --> 0:04:49.640 with an expert in the field of media and ultimately 0:04:49.640 --> 0:04:52.200 what on earth this landscape is like to try to 0:04:52.240 --> 0:04:54.839 evolve Paramount. Going forward John Clines with US co founder 0:04:54.880 --> 0:04:57.400 SEO of the sports streaming platform Handed Media. We'll also 0:04:57.400 --> 0:05:00.640 form a president of CNN executive VP of CBS New Boyd. 0:05:00.760 --> 0:05:03.000 Do you understand the internal workings of these sorts of 0:05:03.000 --> 0:05:05.280 companies And I put it to you again, I mean, 0:05:05.320 --> 0:05:07.559 there's a corporate governance issue going on at the moment. 0:05:07.880 --> 0:05:10.839 But what should Paramount try you to be doing in 0:05:10.920 --> 0:05:12.560 terms of its fundamentals right now? 0:05:13.560 --> 0:05:16.719 Well, you know I have experienced this before because I 0:05:16.800 --> 0:05:20.960 was the media advisor to the show Succession, and I 0:05:21.040 --> 0:05:22.760 have to tell you if you know so. 0:05:22.880 --> 0:05:25.320 Mayhem was our middle name. But if they'd come. 0:05:25.200 --> 0:05:26.880 To me with a plot twist that said they were 0:05:26.880 --> 0:05:30.480 going to dump the CEO two hours before earnings, I 0:05:30.520 --> 0:05:32.360 would have thrown it right back in their faces. I 0:05:32.360 --> 0:05:36.880 would have said, no way anyway. You know, look, every 0:05:36.920 --> 0:05:41.640 acquirer feels they can either grow an asset, or squeeze 0:05:41.680 --> 0:05:45.520 additional profit out of the distressed parts, or just sell 0:05:45.560 --> 0:05:48.520 off the parts. I wouldn't be surprised if David Ellison 0:05:48.600 --> 0:05:52.760 feels that he lands in the growth camp. You know, 0:05:52.839 --> 0:05:55.320 he's young, he's energetic, he has excellent taste. I love 0:05:55.400 --> 0:05:58.080 some of the movies that he's produced, and he's got 0:05:58.120 --> 0:06:00.599 Jeff Shell as a partner in Jeff is a really 0:06:00.800 --> 0:06:04.520 savvy operator, you know, as he was when he was 0:06:04.600 --> 0:06:08.720 CEO of NBC Universal. I think that the challenge for 0:06:08.880 --> 0:06:13.800 any traditional media company in a landscape that is dominated 0:06:13.839 --> 0:06:19.920 by the tech giants, right Apple, Amazon, Google. You know, 0:06:20.080 --> 0:06:23.280 YouTube alone accounts for ten percent of the of the 0:06:23.360 --> 0:06:29.480 TV viewing now on televisions, not not on devices. The 0:06:30.320 --> 0:06:35.200 tech giants are dominating the media landscape, and so whoever 0:06:35.400 --> 0:06:39.880 ends up owning Paramount has to think hard about that. 0:06:40.960 --> 0:06:44.240 They have to think about streaming as a strategy you know, 0:06:45.320 --> 0:06:47.920 because what streaming does is on the line. 0:06:48.360 --> 0:06:50.479 Let me just jump in real quick, John, because I 0:06:50.520 --> 0:06:53.840 get that that they're technology companies. They're good at technology. 0:06:54.200 --> 0:06:56.440 Caroline and I were discussing before the show. I quite 0:06:56.520 --> 0:06:59.400 like Paramount. I like the streaming platform. I watch all 0:06:59.400 --> 0:07:02.960 my Champions League football on Paramount Plus. I liked Taylo 0:07:03.120 --> 0:07:06.359 it was pretty good. I like some of the Paramount movies. 0:07:06.400 --> 0:07:09.720 Top Gun as an example of the Transformers movies. Who 0:07:09.760 --> 0:07:12.880 doesn't what's missing, then what's the fix? 0:07:13.520 --> 0:07:14.560 I'll tell you what's missing. 0:07:14.640 --> 0:07:18.560 AI AI is what's driving streaming because it powers all 0:07:18.600 --> 0:07:21.640 those deep audience insights that allow you to make smarter 0:07:21.800 --> 0:07:27.160 programming decisions, more precision targeted marketing decisions. On my streaming 0:07:27.160 --> 0:07:30.119 platform has seen our cost of acquiring a customer drop 0:07:30.400 --> 0:07:34.160 from thirty four dollars to two dollars in one year's 0:07:34.160 --> 0:07:38.720 time thanks to precision targeting AI. And David Ellison knows 0:07:38.760 --> 0:07:42.640 somebody who is pretty good at the aipiece of it, 0:07:42.680 --> 0:07:45.120 and that's his dad. And his dad is one of 0:07:45.120 --> 0:07:47.280 the investor. Or Oracle is going to be among the 0:07:47.760 --> 0:07:52.840 investors in this. And if you add Oracle AI power 0:07:53.120 --> 0:07:57.800 to some of the assets that paramount owns you inch 0:07:57.920 --> 0:08:00.640 closer anyway toward the giants. 0:08:00.680 --> 0:08:01.680 You're not a giant yet. 0:08:01.680 --> 0:08:04.320 Their market cap, I think is three hundred and fifty 0:08:04.360 --> 0:08:08.160 times smaller than the big boys, but you're heading in 0:08:08.200 --> 0:08:10.960 the right direction and that would be a smart thing 0:08:11.000 --> 0:08:11.640 for them to do. 0:08:11.960 --> 0:08:14.840 So for you, this is a tech growth perspective coming 0:08:14.840 --> 0:08:18.200 from Skydance Media. A lot of investors, though, have completely 0:08:18.240 --> 0:08:20.960 seen an erosion in the value of their non voting stock. 0:08:21.160 --> 0:08:23.200 They're frustrated that this isn't going to be some more 0:08:23.240 --> 0:08:26.200 open bidding competition going on. John, is there a better, 0:08:26.280 --> 0:08:28.680 more clear way of doing this to try? And we'll 0:08:28.920 --> 0:08:33.679 hear clarity from Skydance and then see what others say. 0:08:33.800 --> 0:08:36.480 The reports of an Apollo and a Sony could add themselves. 0:08:37.320 --> 0:08:39.679 Yeah, I mean, Skydance, you know, needs to play its 0:08:39.720 --> 0:08:43.720 cards close to the vest in the short run. And 0:08:44.000 --> 0:08:47.959 of course, if they end up winning the prize versus 0:08:48.040 --> 0:08:52.160 Apollo slash Sony, you know, then they've got to lay 0:08:52.200 --> 0:08:54.280 out a strategy and you know that's what the street 0:08:54.320 --> 0:08:57.240 is going to be looking for work. And you know, 0:08:57.320 --> 0:09:01.200 AI can't be ignored and you know, should obviously be 0:09:01.360 --> 0:09:06.000 a central part of things. But look, family controlled or 0:09:06.120 --> 0:09:10.520 single entity controlled companies invariably lead. 0:09:10.360 --> 0:09:12.480 To this kind of messiness. 0:09:13.040 --> 0:09:16.320 And if whoever ends up with it, at least you 0:09:16.320 --> 0:09:20.359 would hope that things will the operation will run more cleanly. 0:09:20.040 --> 0:09:23.880 Moving forward, John, Of all the subscriptions you can have, 0:09:25.000 --> 0:09:26.400 where does powamount rank? 0:09:28.920 --> 0:09:32.880 Look, I'm not alone in saying I churn constantly. Did 0:09:32.880 --> 0:09:37.360 you know that only seven percent of people will tell 0:09:37.400 --> 0:09:40.720 you that they plan to stick with the streaming platform 0:09:40.800 --> 0:09:45.120 that they currently subscribe to. This month, ninety three percent 0:09:45.480 --> 0:09:48.360 of viewers intend to leave. And that's because people watch 0:09:48.760 --> 0:09:53.559 shows and stars, they don't watch platforms. That's equally applicable 0:09:53.559 --> 0:09:57.360 to Netflix and Disney Plus and all of them. And 0:09:57.440 --> 0:10:00.559 so you know, you've got to think in terms of 0:10:01.000 --> 0:10:05.160 franchises that are driving the bus for a business. So, 0:10:05.480 --> 0:10:07.800 you know, for paramount, the first one that jumps into 0:10:07.800 --> 0:10:08.440 my mind. 0:10:08.240 --> 0:10:09.000 Is the NFL. 0:10:09.440 --> 0:10:13.079 I mean, the NFL dominates viewership on whatever platform at Arizona, 0:10:13.080 --> 0:10:16.160 whether it's streaming on Amazon Prime or it's the traditional 0:10:16.160 --> 0:10:17.200 broadcast networks. 0:10:17.400 --> 0:10:19.240 You know, they news. 0:10:19.400 --> 0:10:22.920 Streaming services are also drivers of streaming, and CBS just 0:10:22.960 --> 0:10:27.920 rebranded their entire CBS News Streaming entity into CBS News 0:10:27.960 --> 0:10:30.120 twenty four to seven, and so they've got to be 0:10:30.200 --> 0:10:34.439 thinking streaming first, direct to consumer first, AI. 0:10:34.360 --> 0:10:35.839 Right, and the masters as well. 0:10:35.920 --> 0:10:38.280 Good example, if you're going to get one chunk off 0:10:38.360 --> 0:10:39.680 or divest a bit, what would it be. 0:10:41.760 --> 0:10:45.560 The cable channels just you know, they're they're they're kind 0:10:45.559 --> 0:10:47.040 of hopeless. 0:10:47.280 --> 0:10:49.280 I mean, they've lost their luster. 0:10:49.920 --> 0:10:52.839 I think you know, they tend to just play the 0:10:52.880 --> 0:10:55.319 same show fifty thousand times in a row and a block, 0:10:55.559 --> 0:10:57.240 which I like as a consumer. I can put the 0:10:57.280 --> 0:10:59.240 Office on on other channels, you know, and all that. 0:10:59.320 --> 0:11:03.120 But it's a dwindling asset. Everyone knows that. It's not 0:11:03.160 --> 0:11:05.839 a surprise. I think they had some offers for some 0:11:05.920 --> 0:11:08.199 of the cable channels in the past year. Part of 0:11:08.240 --> 0:11:12.760 the friction between Redstone and Backish was that he didn't 0:11:12.800 --> 0:11:13.559 sell some of. 0:11:13.520 --> 0:11:17.680 Them fast enough or at all. But that's where you'd 0:11:17.679 --> 0:11:18.199 have to look. 0:11:18.440 --> 0:11:18.720 John. 0:11:18.760 --> 0:11:20.680 I'm just going to go bigger here because it's so 0:11:20.800 --> 0:11:23.360 interesting what you bring about the technology story that needs 0:11:23.400 --> 0:11:25.960 to be injected into Powermount. Of course, you were at 0:11:26.280 --> 0:11:28.760 berninks AI, which was sold to Apple. You've got a 0:11:28.760 --> 0:11:31.800 big focus on the AI compartment, but do you think 0:11:32.000 --> 0:11:33.880 were broadly this is going to be happening elsewhere in 0:11:33.920 --> 0:11:37.080 the industry. Paramount is a but one where we think 0:11:37.360 --> 0:11:40.319 m and A or rejuvenation is needed within some of 0:11:40.360 --> 0:11:41.400 these legacy businesses. 0:11:41.840 --> 0:11:44.480 Oh yeah, I mean, look, the market cap gap is 0:11:45.160 --> 0:11:45.920 just enormous. 0:11:46.240 --> 0:11:47.160 I mean, the tech. 0:11:47.040 --> 0:11:50.120 Giants are three hundred and fifty times bigger than even 0:11:50.240 --> 0:11:53.679 the you know, the biggest, most well known traditional media companies, 0:11:53.720 --> 0:11:57.920 Warner Brothers, Discovery, you know, Netflix, even I think we 0:11:58.040 --> 0:12:00.840 have to start thinking of as a traditional media company 0:12:01.080 --> 0:12:05.200 because the only thing they do is entertainment programming and 0:12:05.240 --> 0:12:08.240 now they're introducing sports, but they have no tech component. 0:12:08.480 --> 0:12:11.840 They have no theme parks, you know, to mitigate risk 0:12:11.960 --> 0:12:14.319 or anything. So they're a pure playing media company. I 0:12:14.360 --> 0:12:17.800 think there's bound to be consolidation amidst those and if 0:12:17.920 --> 0:12:22.080 Paramount is smart about pursuing the AI and streaming opportunities, 0:12:22.280 --> 0:12:27.520 they become a more attractive merger or acquisition target as 0:12:27.640 --> 0:12:31.040 those smaller players, the smaller planets come. 0:12:30.840 --> 0:12:35.440 Together joining Bloomberg Technology, a show available live and on 0:12:35.480 --> 0:12:38.240 demand on lots of platforms. Looking around for a long time. 0:12:38.360 --> 0:12:41.400 Hang Media co founder and CEO John Klin. Great to 0:12:41.400 --> 0:12:43.320 have your perspective. Thank you, know, coming up, we're going 0:12:43.360 --> 0:12:45.920 to take a look at the intensifying tech war between 0:12:45.960 --> 0:12:48.920 the US and China. Just days after Elon Musk reached 0:12:48.960 --> 0:12:52.320 that big milestone on FSD. That conversation coming up, this 0:12:52.480 --> 0:13:10.200 is Bloomberg technology. The law requiring TikTok to divest or 0:13:10.240 --> 0:13:12.920 be banned could be a pivotal moment in what is 0:13:13.080 --> 0:13:16.360 an escalating rivalry between the US and China in the 0:13:16.360 --> 0:13:19.920 context of technology. TikTok for the US would almost certainly 0:13:20.000 --> 0:13:22.560 head to the Supreme Court, which would have to weigh 0:13:22.600 --> 0:13:26.840 the government's security concerns against the free speech of the company. 0:13:27.040 --> 0:13:30.720 And it's all but certain that China will retaliate against 0:13:30.760 --> 0:13:33.040 the US. And that is according to those that watch 0:13:33.120 --> 0:13:35.920 China's government in its responses closely. There's a lot to 0:13:35.960 --> 0:13:38.439 discuss right now in the relationship between China and US 0:13:38.640 --> 0:13:39.760 in the context of tech. 0:13:39.800 --> 0:13:42.240 And to do that we bring in Jen Haglee. 0:13:41.679 --> 0:13:45.520 The CEO and founder and head of researcher JL Warren Capital. 0:13:46.040 --> 0:13:48.520 Let's just start with the TikTok case study. You know, 0:13:48.640 --> 0:13:52.800 byte Dance is the world's most valuable startup, a Chinese giant, 0:13:53.040 --> 0:13:55.760 but private, and it's said we have no plan to 0:13:55.880 --> 0:14:00.240 sell divest TikTok in the States, but it's somewhere that 0:14:00.280 --> 0:14:03.280 the States is just not going to accept your view 0:14:03.320 --> 0:14:04.000 on that outcome. 0:14:05.920 --> 0:14:09.240 Well, I think it's inevitable that the two entities US 0:14:09.240 --> 0:14:13.520 operation will be separated from the parent because consumer data 0:14:13.520 --> 0:14:16.679 in US are just way too way too rich in 0:14:16.720 --> 0:14:20.720 content and the way too sensitive for the same poken. 0:14:20.880 --> 0:14:21.920 I mean, I just think the. 0:14:21.880 --> 0:14:27.720 Reason announcement of Testda Bayd is a very case specific situation. 0:14:27.960 --> 0:14:31.680 It's not applicable to sort of the broad de escalating 0:14:32.440 --> 0:14:35.120 tension between the US and China China argument. 0:14:35.560 --> 0:14:38.560 Okay, that's so interesting because it feels as though there 0:14:38.560 --> 0:14:41.480 are these two different narratives. If you're a company that's 0:14:41.520 --> 0:14:47.760 already within China that's able to do ultimately partnerships within China, 0:14:47.880 --> 0:14:51.000 as we've seen Tesla and Minding, for example, you will 0:14:51.040 --> 0:14:54.840 be allowed to continue and indeed potentially to thrive. But 0:14:55.280 --> 0:14:57.360 others this is not going to be occurring. What do 0:14:57.360 --> 0:15:00.040 you think of some of the Chinese companies trying to 0:15:00.040 --> 0:15:02.280 make their presence known here in the United States team 0:15:02.320 --> 0:15:04.120 and for example, become quite the addiction. 0:15:05.360 --> 0:15:06.320 Will that be allowed? 0:15:06.360 --> 0:15:07.960 Do you think it is right case by case. 0:15:09.160 --> 0:15:11.880 Well, I think it's okay if you are small and 0:15:12.080 --> 0:15:13.960 you are under the radar, but when you get to 0:15:13.960 --> 0:15:16.600 a certain scale and when you catch at tension, that 0:15:16.680 --> 0:15:18.480 it becomes sensitive. 0:15:18.200 --> 0:15:19.880 And topical and political. 0:15:20.320 --> 0:15:23.040 And I think the broad sort of the political tension 0:15:23.400 --> 0:15:26.720 definitely is a headwing and it's unlikely to be resolved 0:15:26.760 --> 0:15:27.760 in any time soon. 0:15:29.600 --> 0:15:34.720 Jinang, your specialty, Your research is largely on US companies 0:15:34.720 --> 0:15:37.880 with exposure to China. So what was your reaction to 0:15:38.000 --> 0:15:40.480 Tesla getting tentative approval for FSD. 0:15:42.400 --> 0:15:45.840 I think the market runs ahead of yourself by so much. 0:15:46.680 --> 0:15:47.560 The partnership. 0:15:48.400 --> 0:15:51.440 You can say it's a milestone, but it's really light 0:15:51.680 --> 0:15:54.840 in the terms. So think about twenty five years ago 0:15:54.960 --> 0:15:58.120 when Ford, the gm BMW mer Cites came to the 0:15:58.520 --> 0:16:02.920 came to China need to have a joint venture to 0:16:03.120 --> 0:16:07.280 gain the license or ability to manufacture and sell cars 0:16:07.280 --> 0:16:09.720 to China. So in this case it's kind of similar. 0:16:10.120 --> 0:16:14.440 So Tesla is a foreign entity. To be able to 0:16:14.600 --> 0:16:18.280 collect data and do what it does in the US, 0:16:18.480 --> 0:16:21.920 which is oftens striving, it needs a local partner. So 0:16:21.960 --> 0:16:24.160 in this case it's by doing it can be anyone, 0:16:24.520 --> 0:16:28.720 So by do will be storing all the data Tesla 0:16:28.760 --> 0:16:32.840 collects on the road and supervise the data usage and 0:16:32.880 --> 0:16:36.800 the filtered before the data gets returned to Tesla for 0:16:37.800 --> 0:16:41.280 you know, for computing. And what we do not know, 0:16:41.520 --> 0:16:45.360 and it's critical to this puzzle, is that how the 0:16:45.480 --> 0:16:49.080 data will be computed, whether it's onshore or offshore, and 0:16:49.240 --> 0:16:52.120 using what capability. So I mean, I think that's the 0:16:52.200 --> 0:16:55.840 critical sort of piece that's missing. 0:16:56.280 --> 0:16:58.600 And yet the market just runs ahead of yourself. 0:16:59.200 --> 0:17:02.200 It's in It's such an interesting point to Caro's question 0:17:02.280 --> 0:17:05.800 on partnership. You know, in my study of China's autonomous 0:17:05.840 --> 0:17:08.800 driving landscape, you know, by Doo is a domestic champion. 0:17:09.119 --> 0:17:14.399 Bydo has its own ambitions for autonomous driving, and Tesla 0:17:14.400 --> 0:17:16.879 could have gone with anyone. As you point out, why 0:17:16.920 --> 0:17:19.359 do you think they went with Baydoo as opposed to 0:17:19.400 --> 0:17:20.840 another robotaxi company. 0:17:21.760 --> 0:17:24.560 I think it could be anyone. It could be by Do, 0:17:24.720 --> 0:17:27.440 it could be Pencent, it could be any mapping company. 0:17:28.040 --> 0:17:31.120 By Do is just the gatekeeper on behalf of the government. 0:17:31.400 --> 0:17:35.399 And what's also unknown is whether this kickoff of f 0:17:35.600 --> 0:17:40.320 SE program in China, whether it's broadly applicable to all 0:17:40.440 --> 0:17:43.480 Tesla vehicles on the road in China, or whether it's 0:17:43.560 --> 0:17:48.000 just applicable to a group of demo demo fleet, which 0:17:48.040 --> 0:17:51.480 is about a couple of dozens of you know, driving 0:17:51.760 --> 0:17:56.680 by do stuff supervising or understanding the data collection process. 0:17:57.040 --> 0:17:59.159 That's unknown and that's critical. 0:18:00.000 --> 0:18:02.399 And it's critical for its long term value as a 0:18:02.440 --> 0:18:06.400 business that's going to be standing apart from other auto companies, 0:18:06.480 --> 0:18:11.560 legacy businesses because of its AI plan. And I'm interested 0:18:11.560 --> 0:18:13.439 in therefore, whether you think there's that much value with 0:18:13.480 --> 0:18:16.160 what's just going on between Tesla and China, and if 0:18:16.280 --> 0:18:18.600 or that's a sacrifice that ultimately has to be made. 0:18:19.840 --> 0:18:23.520 Okay, in China, Tesla is actually not the leader in 0:18:23.600 --> 0:18:28.240 a f speed because it didn't or automs atas autons driving, 0:18:28.480 --> 0:18:31.639 because it doesn't have the license to collect data. It 0:18:31.680 --> 0:18:36.760 doesn't have the data. Where it adds the competition Huawei 0:18:39.200 --> 0:18:43.199 x pun meal, they all have their you know, uh 0:18:44.280 --> 0:18:45.600 autians driving. 0:18:45.400 --> 0:18:47.680 System uh that's on the road. 0:18:48.359 --> 0:18:53.160 So they use ambidious orange chip with in house coding, right, 0:18:53.240 --> 0:18:58.280 So that's their respective solution. So I think this partnership 0:18:58.520 --> 0:19:04.960 is Beijing expressing sort of the relaxation of discrimination against 0:19:05.440 --> 0:19:09.360 American companies. Say now we allow you to have access 0:19:09.600 --> 0:19:13.720 to the marking data under the supervision of a Chinese entity, 0:19:14.200 --> 0:19:16.560 and you can you know, make good use of the 0:19:16.680 --> 0:19:19.399 data so that you are on the equal footy. Where's 0:19:19.440 --> 0:19:22.240 your competition in China. That's the extent of that. 0:19:23.560 --> 0:19:26.800 It's an interesting landscape that you continue to bring clarity 0:19:26.840 --> 0:19:30.399 on Jail. Warren Capital CEO and founder Trinhangmi, thank you 0:19:30.480 --> 0:19:41.560 for deep diving. Now, colleges in the United States, many 0:19:41.560 --> 0:19:45.240 are rushing to confront some pro Palestinian demonstrations on campuses, 0:19:45.560 --> 0:19:49.720 with disciplinary actions escalating and campus life really thrown into turmoil. 0:19:50.000 --> 0:19:52.800 So as the academic year comes to a close. Over 0:19:52.920 --> 0:19:55.920 Columbia and New York, dozens of students entered a campus 0:19:56.000 --> 0:19:59.480 building known as Hamilton Hall after midnight on Tuesday. Marracaded 0:19:59.520 --> 0:20:03.040 themselves in side piling tables, chairs to brock doors and 0:20:03.080 --> 0:20:06.960 covering security cameras. We want to go live to Columbia 0:20:07.040 --> 0:20:09.920 University on the ground as Bloomberg Scarlet Foo and want 0:20:09.960 --> 0:20:12.560 to make clear this is something that's happening across the US, 0:20:12.600 --> 0:20:16.520 but it's also happening across Europe. Outside German Parliament at 0:20:16.560 --> 0:20:18.399 the moment, we're seeing it happen at the Sorbonne in 0:20:18.400 --> 0:20:21.000 Paris is a global element. But what's happening on the 0:20:21.000 --> 0:20:24.680 ground right now with you, Scarlet. 0:20:24.800 --> 0:20:27.160 Yeah, this is ground zero, Carol line for the pro 0:20:27.200 --> 0:20:31.679 Palestinian protests sweeping across the US college campuses and around 0:20:31.680 --> 0:20:34.479 the world. As you said, about eleven hours ago, dozens 0:20:34.520 --> 0:20:37.880 of Columbia students entered Hamilton Hall, which is behind me here. 0:20:37.920 --> 0:20:41.920 They've unfurled banners, one is Free Palestine. On the other side, 0:20:41.960 --> 0:20:44.399 there's another banner in front of Hamilton Hall that says 0:20:44.640 --> 0:20:48.479 into Fada in red. As you mentioned, they've barricaded themselves inside. 0:20:48.520 --> 0:20:52.399 They're occupying the building. They've covered security cameras with black 0:20:52.560 --> 0:20:54.879 trash bags. And this is a building that is of 0:20:54.920 --> 0:20:59.000 course a story because it has a history of student occupation. 0:20:59.080 --> 0:21:02.320 In nineteen sixty eight, students protested against the Vietnam War. 0:21:02.560 --> 0:21:05.480 In nineteen eighty five, students took over Hamilton Hall to 0:21:05.520 --> 0:21:09.000 demand that Columbia divests from companies that do business in 0:21:09.040 --> 0:21:11.919 South Africa during apartheid, and it is from that that 0:21:11.960 --> 0:21:15.720 they take inspiration in making their demands this time around. Clearly, 0:21:15.800 --> 0:21:18.480 this is an escalation, Caroline, and ed from the encampments 0:21:18.520 --> 0:21:21.560 that Columbia and Barnard students set up about two weeks 0:21:21.600 --> 0:21:24.840 ago out on the south lawn in front of Hamilton Hall. 0:21:25.320 --> 0:21:29.359 When the President of Columbia, Manusha Figue, testified before Congress, 0:21:29.560 --> 0:21:31.920 the school had given students a deadline of two pm 0:21:32.000 --> 0:21:35.880 Monday yesterday to clear the encampments. Some did, but clearly 0:21:36.119 --> 0:21:37.440 some had chosen to double. 0:21:37.200 --> 0:21:40.080 Down Scarlet real quick. 0:21:40.160 --> 0:21:43.280 What specifically they're demanding, I just don't get it. 0:21:46.080 --> 0:21:48.960 Yeah, what they're demanding is financial transparency when it comes 0:21:49.000 --> 0:21:50.359 to the almost fourteen. 0:21:50.040 --> 0:21:51.960 Billion dollar endowment. 0:21:51.560 --> 0:21:55.600 That Columbia has, as well as divestment divesting from Israeli 0:21:55.640 --> 0:21:58.800 companies and companies that do business with the Israeli government. 0:21:58.880 --> 0:22:02.000