1 00:00:00,240 --> 00:00:07,240 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:09,560 --> 00:00:12,399 Speaker 2: This is Bloomberg day Break Weekend, our global look at 3 00:00:12,400 --> 00:00:14,680 Speaker 2: the top stories in the coming week from our Daybreak 4 00:00:14,680 --> 00:00:17,840 Speaker 2: anchors all around the world. Straight ahead on the program, 5 00:00:17,960 --> 00:00:21,239 Speaker 2: some big entertainment earnings are coming out this week. We'll 6 00:00:21,280 --> 00:00:24,439 Speaker 2: break down what to expect from Disney and Paramount Sky Dance. 7 00:00:24,560 --> 00:00:26,280 Speaker 2: I'm Nathan Hager in Washington. 8 00:00:26,440 --> 00:00:28,760 Speaker 3: I'm krolyin Hepkea in London, where we're looking ahead to 9 00:00:28,800 --> 00:00:32,960 Speaker 3: Portugal's Web Summit as the country pivots to tech and AI. 10 00:00:33,320 --> 00:00:36,520 Speaker 4: I'm dek Krisner looking ahead to Singles Day in China. 11 00:00:37,640 --> 00:00:41,680 Speaker 1: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 12 00:00:41,720 --> 00:00:45,400 Speaker 1: eleven three y oh New York, Bloomberg ninety nine one, Washington, DC, 13 00:00:45,920 --> 00:00:51,040 Speaker 1: Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius 14 00:00:51,200 --> 00:00:54,720 Speaker 1: XM one twenty one, and around the world on Bloomberg Radio, 15 00:00:54,760 --> 00:00:56,960 Speaker 1: dot Com and the Bloomberg Business app. 16 00:01:01,440 --> 00:01:04,200 Speaker 2: Good day to you. I'm Nathan Hager. We begin today's 17 00:01:04,240 --> 00:01:06,840 Speaker 2: program with a look at some upcoming earnings reports in 18 00:01:06,880 --> 00:01:10,640 Speaker 2: the entertainment sector. We get results this week from both 19 00:01:10,680 --> 00:01:14,840 Speaker 2: Walt Disney and Paramount sky Dance. For more on what 20 00:01:14,920 --> 00:01:18,839 Speaker 2: to expect from both these entertainment giants, we are joined 21 00:01:18,840 --> 00:01:23,680 Speaker 2: by Bloomberg Intelligence analyst Geita Ranganathan and Bloomberg Surveillance co 22 00:01:23,760 --> 00:01:26,040 Speaker 2: host Paul Sweeney, who spent a better part of his 23 00:01:26,080 --> 00:01:29,120 Speaker 2: career covering the media. Great to have both of you 24 00:01:29,280 --> 00:01:32,640 Speaker 2: with us on the weekend program. And let's start with Disney. 25 00:01:32,800 --> 00:01:37,640 Speaker 2: Obviously the biggest entertainment company in the world. Gita, what 26 00:01:37,720 --> 00:01:39,479 Speaker 2: are some of the key things we need to watch 27 00:01:39,520 --> 00:01:42,240 Speaker 2: from the House of Mouse this time around. 28 00:01:43,560 --> 00:01:45,920 Speaker 5: Yeah, so, I think, as usual, the big thing that 29 00:01:45,959 --> 00:01:49,800 Speaker 5: we're watching for is the Parks segment. This is the 30 00:01:49,880 --> 00:01:52,920 Speaker 5: biggest segment for Disney, brings in about sixty percent of 31 00:01:52,960 --> 00:01:58,120 Speaker 5: their profits. So obviously, you know, any trends, any consumer trends, 32 00:01:58,360 --> 00:02:01,040 Speaker 5: are very very important. One of the key things that 33 00:02:01,080 --> 00:02:03,400 Speaker 5: you know, people have been concerned about for Disney for 34 00:02:03,480 --> 00:02:06,680 Speaker 5: this year is the competition from the opening of Epic 35 00:02:06,800 --> 00:02:12,240 Speaker 5: Universe in Florida, which happened in May. When they reported 36 00:02:12,360 --> 00:02:15,440 Speaker 5: last they actually showed a really good results. They were 37 00:02:15,440 --> 00:02:18,280 Speaker 5: able to hold their ground despite all of that competition, 38 00:02:18,639 --> 00:02:21,560 Speaker 5: So I think we're expecting to see more of that, 39 00:02:22,160 --> 00:02:25,560 Speaker 5: you know, resilient demand going into the quarter. And then 40 00:02:25,560 --> 00:02:27,800 Speaker 5: the other big thing that we're watching for is really 41 00:02:27,840 --> 00:02:34,160 Speaker 5: the streaming business. So in August, ESPN launched its streaming 42 00:02:34,200 --> 00:02:37,480 Speaker 5: platform for the very first time. We're going to look 43 00:02:37,520 --> 00:02:41,400 Speaker 5: to see if Disney management team provides any numbers in 44 00:02:41,480 --> 00:02:44,359 Speaker 5: terms of early adoption and just to see how that 45 00:02:44,440 --> 00:02:45,440 Speaker 5: launch has been going. 46 00:02:46,240 --> 00:02:49,680 Speaker 2: Paul, you of course follow this company very closely as well. 47 00:02:49,800 --> 00:02:52,640 Speaker 2: I mean, I gotta admit when it comes to Disney streaming, 48 00:02:52,680 --> 00:02:56,240 Speaker 2: I sometimes forget about my Disney Plus subscription. I mean, 49 00:02:56,680 --> 00:02:58,600 Speaker 2: am I part of the problem here? I mean, how 50 00:02:58,600 --> 00:03:03,880 Speaker 2: do you see Disney navigating the very competitive streaming universe. 51 00:03:04,200 --> 00:03:07,040 Speaker 6: Yeah, I think, Nathan, it all comes down, as it 52 00:03:07,160 --> 00:03:10,960 Speaker 6: usually does in the media business, to content, and Disney 53 00:03:11,120 --> 00:03:14,000 Speaker 6: has some of the absolute best content in the world, 54 00:03:14,120 --> 00:03:17,400 Speaker 6: including live sports. So when you put that all together, 55 00:03:17,400 --> 00:03:19,720 Speaker 6: it's just a question of how you deliver that content 56 00:03:20,639 --> 00:03:22,720 Speaker 6: to people. And when I came up into business, it 57 00:03:22,840 --> 00:03:26,119 Speaker 6: was through the cable bundle, it was through satellites like DirecTV. 58 00:03:26,360 --> 00:03:29,040 Speaker 6: Now it's streaming, and so you just got to figure 59 00:03:29,040 --> 00:03:31,239 Speaker 6: out how do you most efficiently get that content to 60 00:03:31,320 --> 00:03:33,600 Speaker 6: your client when they want your customer, when they want 61 00:03:33,600 --> 00:03:36,720 Speaker 6: it where they want it, and charge a price that 62 00:03:36,840 --> 00:03:40,240 Speaker 6: is profitable for you, and Disney's has a great track 63 00:03:40,280 --> 00:03:43,240 Speaker 6: record of doing that. Netflix paved the way and streaming 64 00:03:43,280 --> 00:03:46,040 Speaker 6: and really showed kind of the world how this new 65 00:03:46,080 --> 00:03:49,040 Speaker 6: media models can be. And now what we've seen from 66 00:03:49,080 --> 00:03:51,200 Speaker 6: the legacy media companies over the last ten years or so, 67 00:03:51,600 --> 00:03:54,360 Speaker 6: as Githa writes about with her research, is these legacy 68 00:03:54,400 --> 00:03:56,360 Speaker 6: media companies are trying to catch up. They're trying to 69 00:03:56,400 --> 00:03:59,320 Speaker 6: transition from a model where the cable TV bundle was 70 00:03:59,600 --> 00:04:02,600 Speaker 6: really a way to go to now streaming and Disney 71 00:04:03,600 --> 00:04:05,160 Speaker 6: is really doing a good good job, and I think 72 00:04:05,200 --> 00:04:07,560 Speaker 6: the street believes that they can certainly be a really 73 00:04:08,120 --> 00:04:09,600 Speaker 6: big player in the streaming business. 74 00:04:09,640 --> 00:04:13,480 Speaker 2: Yeah, Githor, we've talked before about how Netflix has expanded 75 00:04:13,520 --> 00:04:18,240 Speaker 2: its own streaming strategy with live events, getting into sports 76 00:04:18,400 --> 00:04:23,080 Speaker 2: as well, and now with Disney introducing its own streaming 77 00:04:23,279 --> 00:04:27,880 Speaker 2: sports platform with ESPN Plus, is it kind of like 78 00:04:28,000 --> 00:04:30,560 Speaker 2: legacy media playing catch up again? 79 00:04:32,480 --> 00:04:34,440 Speaker 5: Yes, a little bit of that, but you know the 80 00:04:34,480 --> 00:04:37,920 Speaker 5: way that they're kind of positioning ESPN, So Disney has 81 00:04:37,960 --> 00:04:40,279 Speaker 5: to be really careful. They're kind of walking a tightrope 82 00:04:40,279 --> 00:04:43,320 Speaker 5: here because remember they have the leading brand when it 83 00:04:43,320 --> 00:04:48,400 Speaker 5: comes to linear TV with ESPN. ESPN generates about fifteen 84 00:04:48,520 --> 00:04:51,880 Speaker 5: billion dollars from the linear TV model ear in and 85 00:04:51,960 --> 00:04:54,680 Speaker 5: ear out. You know, we're talking about affiliate fees. They 86 00:04:54,680 --> 00:04:58,720 Speaker 5: are the highest affiliate fee generator across the industry. They 87 00:04:58,800 --> 00:05:02,080 Speaker 5: charge something like ten dollars per month per subscriber, so 88 00:05:02,160 --> 00:05:06,039 Speaker 5: absolutely way way above competitors who charge maybe you know 89 00:05:06,360 --> 00:05:08,840 Speaker 5: or other channels that are at like one dollar or 90 00:05:08,880 --> 00:05:11,080 Speaker 5: one and a half dollars per month. So obviously they 91 00:05:11,120 --> 00:05:14,440 Speaker 5: have to be very careful to protect that legacy TV model, 92 00:05:14,640 --> 00:05:16,400 Speaker 5: but at the same time, they want to be able 93 00:05:16,480 --> 00:05:20,080 Speaker 5: to appeal to consumers who are outside the PATV ecosystem. 94 00:05:20,120 --> 00:05:21,880 Speaker 5: And there are a lot of consumers, by the way, 95 00:05:21,920 --> 00:05:25,200 Speaker 5: outside the PATV ecosystem. We're talking about sixty five to 96 00:05:25,320 --> 00:05:29,479 Speaker 5: seventy million households that do not take a PATV or 97 00:05:29,480 --> 00:05:32,640 Speaker 5: that do not subscribe to a PATV bundle, and so 98 00:05:32,640 --> 00:05:35,279 Speaker 5: it's really important to be able to, you know, provide 99 00:05:35,360 --> 00:05:38,240 Speaker 5: access to sports content and that's exactly what ESPN is 100 00:05:38,279 --> 00:05:41,000 Speaker 5: going after and we think that so far, you know, 101 00:05:41,000 --> 00:05:42,880 Speaker 5: they've done a really good job with that in terms 102 00:05:42,880 --> 00:05:47,680 Speaker 5: of putting their content out there. You talk about catchup 103 00:05:47,720 --> 00:05:50,080 Speaker 5: and are they a little bit late to the game. Yes, 104 00:05:50,200 --> 00:05:52,880 Speaker 5: maybe in terms of Disney Plus, but again with ESPN, 105 00:05:52,920 --> 00:05:56,120 Speaker 5: they had to be really measured, really deliberate, make sure 106 00:05:56,120 --> 00:06:00,440 Speaker 5: that they don't cannibalize, you know, their linear TV business, 107 00:06:00,440 --> 00:06:01,600 Speaker 5: which is really their cash go. 108 00:06:02,480 --> 00:06:05,680 Speaker 2: And Paul, you mentioned the content slate that Disney has 109 00:06:05,839 --> 00:06:07,960 Speaker 2: as well. We haven't even talked about what, you know, 110 00:06:08,000 --> 00:06:11,880 Speaker 2: their traditional business, what's coming in the box office? What 111 00:06:11,920 --> 00:06:13,000 Speaker 2: are we expecting there? 112 00:06:13,320 --> 00:06:16,919 Speaker 6: You know, it's interesting, as Githa writes in her research, 113 00:06:17,000 --> 00:06:19,520 Speaker 6: Disney is just in a phenomenal place from a content 114 00:06:19,560 --> 00:06:22,800 Speaker 6: creation perspective. They've got obviously all the Disney product that 115 00:06:23,160 --> 00:06:25,360 Speaker 6: has propelled the company for decades, but then they also 116 00:06:25,400 --> 00:06:27,760 Speaker 6: have the Star Wars stuff and the Marvel stuff, and 117 00:06:27,800 --> 00:06:29,760 Speaker 6: they just seem if they see something good out there 118 00:06:30,120 --> 00:06:32,080 Speaker 6: over the past ten or fifteen years, they went out 119 00:06:32,080 --> 00:06:35,120 Speaker 6: and bought it. So they have the best content in 120 00:06:35,160 --> 00:06:37,640 Speaker 6: the business and they usually lead box office by a 121 00:06:37,720 --> 00:06:40,560 Speaker 6: wide margin, although Warner Brothers is having a very good 122 00:06:40,640 --> 00:06:43,640 Speaker 6: year this year, so again Disney's at a spot you know. 123 00:06:44,240 --> 00:06:47,440 Speaker 6: You know, they bought the media assets, including the studio, 124 00:06:47,480 --> 00:06:50,760 Speaker 6: from Fox, so they have all of that content as well. 125 00:06:50,839 --> 00:06:54,760 Speaker 6: So from a content perspective, nobody really can compete against them, 126 00:06:55,680 --> 00:06:58,400 Speaker 6: and so they're in a great spot there, and they 127 00:06:58,520 --> 00:07:01,440 Speaker 6: monetize it better than anybody else, whether it's through the 128 00:07:01,440 --> 00:07:05,119 Speaker 6: cable bundle, through the streaming service, you know, making bringing 129 00:07:05,160 --> 00:07:07,599 Speaker 6: some of the content to the theme parks. That's kind 130 00:07:07,600 --> 00:07:09,960 Speaker 6: of been the magic of Disney as a company and 131 00:07:10,000 --> 00:07:12,360 Speaker 6: as a stock over the years, their ability to really 132 00:07:12,440 --> 00:07:15,080 Speaker 6: monetize their content as well or better than anybody else 133 00:07:15,080 --> 00:07:15,480 Speaker 6: out there. 134 00:07:15,640 --> 00:07:18,720 Speaker 2: You know, we haven't even talked about the linear networks yet. 135 00:07:18,800 --> 00:07:22,320 Speaker 2: They've got ABC as well, and I think this is 136 00:07:22,360 --> 00:07:27,480 Speaker 2: going to be the quarter since the controversy surrounding Jimmy Kimmel, 137 00:07:27,560 --> 00:07:31,000 Speaker 2: isn't it. Is this going to be a hindrance potentially 138 00:07:31,080 --> 00:07:34,520 Speaker 2: the traditional broadcast and cable networks. 139 00:07:34,600 --> 00:07:38,480 Speaker 5: Kitha, Yeah, So, I mean, you know, one thing that 140 00:07:38,880 --> 00:07:41,960 Speaker 5: all media companies, this is not just Disney, have to 141 00:07:41,960 --> 00:07:44,920 Speaker 5: contend with is cord cutting. Is a lot of pressure 142 00:07:45,080 --> 00:07:47,880 Speaker 5: with the linear TV networks. Of course, you had the 143 00:07:47,960 --> 00:07:51,520 Speaker 5: Jimmy Kimmel, you know, controversy. One thing that we're going 144 00:07:51,560 --> 00:07:53,560 Speaker 5: to be looking for when they report is whether that 145 00:07:53,640 --> 00:07:57,520 Speaker 5: Jimmy Kimmel's suspension actually hurt their streaming numbers because we 146 00:07:57,560 --> 00:08:00,560 Speaker 5: did get reports that users were kind of canceling, you know, 147 00:08:00,560 --> 00:08:04,120 Speaker 5: their subscriptions. Again, I don't think it's going to be material, 148 00:08:04,160 --> 00:08:05,920 Speaker 5: but this is something that all media companies have to 149 00:08:05,920 --> 00:08:09,120 Speaker 5: contend with. What is the plan that they have for 150 00:08:09,200 --> 00:08:13,400 Speaker 5: their networks? For Disney, ABC is a very important property 151 00:08:13,440 --> 00:08:19,400 Speaker 5: because it shares a lot of the sports rights with ESPN. 152 00:08:19,560 --> 00:08:21,440 Speaker 5: You know, they do show a lot of Monday night 153 00:08:21,440 --> 00:08:24,960 Speaker 5: football games. You know, they have NBA games, There's a 154 00:08:25,000 --> 00:08:28,040 Speaker 5: lot of college football. So you know, ABC is still 155 00:08:28,080 --> 00:08:30,560 Speaker 5: a very very important property to them. Yes, they have 156 00:08:30,640 --> 00:08:33,440 Speaker 5: a whole bunch of other cable TV networks, you know, 157 00:08:33,480 --> 00:08:37,720 Speaker 5: think about the whole Disney suite, you know, National Geographic, 158 00:08:37,800 --> 00:08:41,960 Speaker 5: all of those channels that are definitely insecular decline. But 159 00:08:42,080 --> 00:08:46,240 Speaker 5: so far there are no plans, at least publicly that 160 00:08:46,240 --> 00:08:48,120 Speaker 5: that Disney has said that they want to you know, 161 00:08:48,280 --> 00:08:51,280 Speaker 5: necessarily separate that business or sell that business. So again 162 00:08:51,320 --> 00:08:53,800 Speaker 5: we're kind of contending here with the melting ice cube. 163 00:08:53,679 --> 00:08:56,760 Speaker 6: And Nathan you know, interesting on the subject. Laura Martin 164 00:08:56,920 --> 00:08:58,719 Speaker 6: Research Channels that need them in company came out with 165 00:08:58,760 --> 00:09:01,600 Speaker 6: a really provocative note about a month ago, saying that 166 00:09:02,320 --> 00:09:05,120 Speaker 6: Disney should just shut down the ABC network, make it 167 00:09:05,160 --> 00:09:07,880 Speaker 6: go dark, don't sell it, just shut it down. It's 168 00:09:07,920 --> 00:09:11,040 Speaker 6: a declining business, and it's really the only business business 169 00:09:11,040 --> 00:09:13,640 Speaker 6: that is under federal regulation. And if you want to 170 00:09:13,679 --> 00:09:16,080 Speaker 6: get out of the way President Trump and maybe some 171 00:09:16,120 --> 00:09:19,280 Speaker 6: heavy handed regulation, just sell it and or just shut 172 00:09:19,280 --> 00:09:21,280 Speaker 6: it down. Which I thought was an interesting topic. 173 00:09:21,559 --> 00:09:24,480 Speaker 2: Yeah, I'm really interesting. Indeed, we're speaking with Paul Sweeney, 174 00:09:24,600 --> 00:09:29,520 Speaker 2: host of Bloomberg Surveillance and get the wronganathen of Bloomberg Intelligence. 175 00:09:29,840 --> 00:09:33,480 Speaker 2: Let's shift over to Paramount sky Dance. The first quarter 176 00:09:33,559 --> 00:09:36,440 Speaker 2: that they're going to be reporting as Paramount sky Dance 177 00:09:36,520 --> 00:09:39,600 Speaker 2: under the new ownership with David Ellison at the helm, 178 00:09:39,640 --> 00:09:42,120 Speaker 2: a lot of job cuts, a lot of changes. Getha, 179 00:09:42,200 --> 00:09:43,600 Speaker 2: How could that play into the results? 180 00:09:44,800 --> 00:09:48,559 Speaker 5: Yeah, we really expect the upcoming results to be a 181 00:09:48,600 --> 00:09:52,040 Speaker 5: big reset in the whole Paramount sky Dance outlook. I mean, 182 00:09:52,040 --> 00:09:55,600 Speaker 5: this will be the new management team's first big reveal 183 00:09:55,840 --> 00:09:59,720 Speaker 5: off its operational of its financial plans. As you just mentioned, 184 00:09:59,720 --> 00:10:02,040 Speaker 5: there's to be a mix of major cost cuts to 185 00:10:02,240 --> 00:10:05,440 Speaker 5: improve efficiency and there'll probably be some major investments that 186 00:10:05,480 --> 00:10:08,880 Speaker 5: they announced to support you know, long term growth, especially 187 00:10:08,960 --> 00:10:10,480 Speaker 5: on both on the content side as well as on 188 00:10:10,520 --> 00:10:12,599 Speaker 5: the tech side. We have to remember that this was 189 00:10:12,600 --> 00:10:17,720 Speaker 5: a company that was undermanaged, underinvested in for years, so 190 00:10:17,960 --> 00:10:20,040 Speaker 5: you know, really looking forward to see what they have 191 00:10:20,120 --> 00:10:22,520 Speaker 5: to say. But of course, the big looming question other 192 00:10:22,600 --> 00:10:25,040 Speaker 5: than results is are they going to make or are 193 00:10:25,080 --> 00:10:29,080 Speaker 5: they going to increase their bid for Warner Brothers Discovery. 194 00:10:29,120 --> 00:10:30,559 Speaker 7: That is really the big. 195 00:10:30,320 --> 00:10:30,880 Speaker 5: Big question. 196 00:10:31,160 --> 00:10:33,880 Speaker 2: Absolutely I wanted to get into that with you, Paul. 197 00:10:34,080 --> 00:10:38,280 Speaker 2: Is Paramount Skydance is going to have to become Paramounts Skiddance, 198 00:10:38,280 --> 00:10:40,520 Speaker 2: Warner Brothers Discovery or whatever other names they're going to 199 00:10:40,559 --> 00:10:42,120 Speaker 2: have to put at the end of their title. 200 00:10:42,240 --> 00:10:44,760 Speaker 6: Yeah, you know, it's interesting they have an enterprise value 201 00:10:44,800 --> 00:10:46,720 Speaker 6: of thirty billion dollars in at one point in time 202 00:10:46,760 --> 00:10:49,200 Speaker 6: that was a big media company. In today's world, it 203 00:10:49,240 --> 00:10:51,760 Speaker 6: really is not, and I think, you know, it's kind 204 00:10:51,760 --> 00:10:53,200 Speaker 6: of a lot of folks will call it, you know, 205 00:10:53,280 --> 00:10:55,760 Speaker 6: substandard in size, but you take a look at Warner 206 00:10:55,760 --> 00:10:59,400 Speaker 6: Brothers Discovery, it is three times the size of Paramount 207 00:11:00,040 --> 00:11:01,920 Speaker 6: at ninety billion dollars of enterprise value. 208 00:11:01,960 --> 00:11:03,079 Speaker 8: So it's it's. 209 00:11:03,000 --> 00:11:06,760 Speaker 6: Really a big something, a big pill to swallow there. 210 00:11:06,800 --> 00:11:07,880 Speaker 6: So they're going to need some help. 211 00:11:08,120 --> 00:11:08,360 Speaker 5: Now. 212 00:11:08,679 --> 00:11:13,079 Speaker 6: It's nice when Larry Elson is the CEO's father that 213 00:11:13,320 --> 00:11:15,600 Speaker 6: lends some support there, But they're going to need some 214 00:11:15,640 --> 00:11:18,319 Speaker 6: partners probably if they want to pursue this. Here so 215 00:11:18,480 --> 00:11:20,000 Speaker 6: be aching to see how it plays. And as Githa 216 00:11:20,520 --> 00:11:22,880 Speaker 6: well knows, this is a company that is now officially 217 00:11:23,160 --> 00:11:25,600 Speaker 6: in play. I mean the CEO said it, the board 218 00:11:25,600 --> 00:11:28,160 Speaker 6: has said it, and so it's just a question of 219 00:11:28,200 --> 00:11:29,880 Speaker 6: who and when, I think at what price. 220 00:11:30,480 --> 00:11:32,760 Speaker 2: Yeah, it would be fascinating to see. I given the 221 00:11:33,840 --> 00:11:36,400 Speaker 2: merger between Disney and Fox just a few years ago, 222 00:11:36,440 --> 00:11:40,720 Speaker 2: if we see yet another major media entertainment merger like this, 223 00:11:40,960 --> 00:11:47,280 Speaker 2: where could that position Paramount against Disney with competing giant 224 00:11:47,640 --> 00:11:48,640 Speaker 2: content slates. 225 00:11:48,720 --> 00:11:49,040 Speaker 6: KEITHA. 226 00:11:50,600 --> 00:11:53,040 Speaker 5: Yeah, I think it puts them really within striking distance 227 00:11:53,120 --> 00:11:55,760 Speaker 5: of Disney. It puts them within striking distance of even 228 00:11:55,800 --> 00:11:58,240 Speaker 5: I would say in Netflix, because they're going to have 229 00:11:58,640 --> 00:12:02,640 Speaker 5: a fantastic content. They're going to have some best best 230 00:12:02,679 --> 00:12:05,959 Speaker 5: in class, I would say IP so really really puts 231 00:12:05,960 --> 00:12:07,640 Speaker 5: them on the map because right now, if you kind 232 00:12:07,640 --> 00:12:11,319 Speaker 5: of look at Paramount, they have about eighty million streaming subscribers. 233 00:12:11,760 --> 00:12:14,480 Speaker 5: You put that together though with HBO, Max which has 234 00:12:14,520 --> 00:12:17,160 Speaker 5: about one hundred and thirty million. You already get to 235 00:12:17,160 --> 00:12:19,920 Speaker 5: two hundred million, which is above what Disney has in 236 00:12:20,000 --> 00:12:23,840 Speaker 5: terms of streaming subscriptions, So definitely makes them a major player, 237 00:12:24,400 --> 00:12:26,480 Speaker 5: you know, somebody that you have to take note of, 238 00:12:27,200 --> 00:12:29,560 Speaker 5: and gives them a lot of firepower in terms of 239 00:12:29,600 --> 00:12:32,679 Speaker 5: growing both the studio business as well as the streaming platforms. 240 00:12:33,400 --> 00:12:38,040 Speaker 2: Yeah, really busy entertainment earnings week on tap Forest. Thanks 241 00:12:38,080 --> 00:12:41,200 Speaker 2: to both of you for this. That's Paul Sweeney, co 242 00:12:41,280 --> 00:12:45,240 Speaker 2: host of Bloomberg Surveillance and geta ronganath and media analyst 243 00:12:45,400 --> 00:12:49,040 Speaker 2: from Bloomberg Intelligence, and coming up on Bloomberg Daybreak Weekend 244 00:12:49,080 --> 00:12:52,320 Speaker 2: will preview Portugal's Web Summit, one of the largest of 245 00:12:52,360 --> 00:12:56,760 Speaker 2: its kind in Europe. I'm Nathan Hager, and this is Bloomberg. 246 00:13:07,800 --> 00:13:10,520 Speaker 2: This is Bloomberg day Break Weekend, our global look ahead 247 00:13:10,520 --> 00:13:12,760 Speaker 2: at the top stories for investors in the coming week. 248 00:13:13,000 --> 00:13:16,280 Speaker 2: I'm Nathan Hager in Washington. Up later in our program, 249 00:13:16,440 --> 00:13:19,520 Speaker 2: Singles Day in China is coming up. We'll get a preview. 250 00:13:19,720 --> 00:13:22,960 Speaker 2: But first Portugal. It's looking to accelerate the growth of 251 00:13:23,000 --> 00:13:26,800 Speaker 2: its AI, technology and startup industries. For more than a decade, 252 00:13:26,840 --> 00:13:29,760 Speaker 2: the country's been louring top international business talent through its 253 00:13:29,760 --> 00:13:32,800 Speaker 2: Golden Visa program, but now it's also playing host of 254 00:13:32,880 --> 00:13:36,520 Speaker 2: billion dollar investments from the likes of Microsoft and Nvidia 255 00:13:36,679 --> 00:13:39,600 Speaker 2: in new AI data centers. With the Web Summit in 256 00:13:39,679 --> 00:13:42,040 Speaker 2: Lisbon taking place in the next few days, we want 257 00:13:42,080 --> 00:13:45,400 Speaker 2: to get more from Bloomberg Daybreak Europe Banker Caroline Hepger 258 00:13:45,559 --> 00:13:46,559 Speaker 2: in London. 259 00:13:46,679 --> 00:13:51,720 Speaker 3: Nathan Portugal's Web Summit, which Bloomberg once dubbed the Davos 260 00:13:51,840 --> 00:13:54,920 Speaker 3: for Geeks, is one of the largest tech summits in Europe. 261 00:13:55,240 --> 00:13:57,959 Speaker 3: In the next few days, the forum in Lisbon will 262 00:13:58,000 --> 00:14:02,920 Speaker 3: hold discussions on topics ranging from AI to cybersecurity to fintech, 263 00:14:03,280 --> 00:14:06,320 Speaker 3: whilst playing host to speakers from Meta all the way 264 00:14:06,360 --> 00:14:10,319 Speaker 3: to tennis legend Maria Sharapova. It comes as the country 265 00:14:10,320 --> 00:14:14,000 Speaker 3: looks to consolidate its status as a tech haven and 266 00:14:14,080 --> 00:14:18,559 Speaker 3: to court investment in its burgeoning AI and startup industries. 267 00:14:18,960 --> 00:14:22,120 Speaker 3: Now in the last few weeks, investors have grown increasingly 268 00:14:22,200 --> 00:14:27,160 Speaker 3: concerned though, about the prospect of stretchtech, dot valuations and 269 00:14:27,240 --> 00:14:31,160 Speaker 3: maybe even an AI bubble. In Vidias, Jensen Wong spoke 270 00:14:31,200 --> 00:14:34,920 Speaker 3: to Blueberg's Ed Ludlow and tried to calm the market's nerves. 271 00:14:35,480 --> 00:14:37,160 Speaker 8: I don't believe we're in an AI bubble, and the 272 00:14:37,200 --> 00:14:40,520 Speaker 8: reason for that is we're going through a natural transition 273 00:14:41,160 --> 00:14:44,080 Speaker 8: from an old computing model based on general purpose computing 274 00:14:44,080 --> 00:14:48,600 Speaker 8: to accelerated computing. We also know that AI has now 275 00:14:48,640 --> 00:14:52,440 Speaker 8: become good enough because of reasoning capability, research capabilities, its 276 00:14:52,480 --> 00:14:56,040 Speaker 8: ability to think. It's now generating tokens and now generating 277 00:14:56,080 --> 00:14:59,960 Speaker 8: intelligence that's worth paying for to the point where I'm 278 00:15:00,080 --> 00:15:01,000 Speaker 8: paying lots of it. 279 00:15:01,480 --> 00:15:04,960 Speaker 3: That was Nvidia's Jensen Won speaking to Bloomberg's Ed Ludlow, 280 00:15:05,360 --> 00:15:08,800 Speaker 3: well as tech CEOs, then seek to reassure investors that 281 00:15:08,840 --> 00:15:13,239 Speaker 3: AI spending shows no signs of abating. Portugal is positioning 282 00:15:13,280 --> 00:15:17,240 Speaker 3: itself as one of the beneficiaries of Europe's AI build out. 283 00:15:17,760 --> 00:15:20,640 Speaker 3: How far, though, can the country's growing tech scene thrust 284 00:15:20,640 --> 00:15:24,840 Speaker 3: its economy into the twenty first century? Joining us now 285 00:15:24,880 --> 00:15:28,920 Speaker 3: is Bloomberg's Portugal bureau chief, Sofia Auto Ecosta. Sofia, good 286 00:15:28,960 --> 00:15:31,360 Speaker 3: to speak to you. So shall we start with the 287 00:15:31,360 --> 00:15:34,120 Speaker 3: Web Summit, which is one of the largest of its 288 00:15:34,200 --> 00:15:37,640 Speaker 3: kind in Europe? What do the main themes this year 289 00:15:37,680 --> 00:15:40,080 Speaker 3: that they'll be talking about actually kind of tell us 290 00:15:40,520 --> 00:15:42,680 Speaker 3: about Portugal's priorities. 291 00:15:43,520 --> 00:15:46,000 Speaker 9: It's kind of the greatest hit of the biggest talking 292 00:15:46,080 --> 00:15:49,600 Speaker 9: points across AI and tech at the moment. So we 293 00:15:49,640 --> 00:15:54,000 Speaker 9: do have AI and ethics really exploring how to govern 294 00:15:54,440 --> 00:15:59,160 Speaker 9: this increasingly important industry in Europe and how really to 295 00:15:59,360 --> 00:16:02,560 Speaker 9: kind of align it with human values. We also have 296 00:16:02,680 --> 00:16:06,360 Speaker 9: the future of work climate, tech growth and startups, you 297 00:16:06,440 --> 00:16:08,880 Speaker 9: name it. And we do have the Finance Minister from 298 00:16:08,920 --> 00:16:12,520 Speaker 9: Portugal attending and expected to speak. So that really shows 299 00:16:12,560 --> 00:16:16,440 Speaker 9: you where the priorities life for this new government that 300 00:16:16,520 --> 00:16:19,320 Speaker 9: followed the elections earlier in May this year. 301 00:16:19,880 --> 00:16:20,840 Speaker 7: That's really kind of. 302 00:16:20,800 --> 00:16:24,760 Speaker 9: Throwing investment and subsidies at this industry, trying to position 303 00:16:24,880 --> 00:16:29,640 Speaker 9: Portugal as one of the forefront economies to invest in 304 00:16:29,640 --> 00:16:30,800 Speaker 9: in the European Union. 305 00:16:31,440 --> 00:16:35,400 Speaker 3: Sophia, you've been writing about the town of Scenes, which 306 00:16:35,480 --> 00:16:40,440 Speaker 3: is on Portugal's dramatic Atlantic coast. Then actually this could 307 00:16:40,440 --> 00:16:43,920 Speaker 3: be a data center, a tech hub, not just for 308 00:16:44,000 --> 00:16:47,320 Speaker 3: Portugal but maybe for Europe. Tell us about what's been 309 00:16:47,440 --> 00:16:50,840 Speaker 3: happening there in terms of deals and breaking ground. 310 00:16:51,680 --> 00:16:54,640 Speaker 9: So this is really interesting because this is a very 311 00:16:54,680 --> 00:16:59,040 Speaker 9: small town, about fifteen thousand residents. I went down there. 312 00:16:59,080 --> 00:17:01,920 Speaker 9: It's about an hour and a half's drive from our 313 00:17:02,080 --> 00:17:07,200 Speaker 9: Lisbon office. And what's happening there is investment from Chinese, 314 00:17:07,440 --> 00:17:10,639 Speaker 9: US European investors and. 315 00:17:11,240 --> 00:17:12,080 Speaker 7: Quite a lot of it. 316 00:17:12,240 --> 00:17:15,119 Speaker 9: So my interest was, you know, why are billions of 317 00:17:15,160 --> 00:17:20,600 Speaker 9: dollars pouring into this really small Portuguese town And one 318 00:17:20,640 --> 00:17:22,960 Speaker 9: of them is what's set to be one of the 319 00:17:22,960 --> 00:17:26,640 Speaker 9: biggest data center projects in the European Union. And it's 320 00:17:27,280 --> 00:17:29,720 Speaker 9: one point two gigawatts. Now, Karlyn, I have no idea 321 00:17:29,720 --> 00:17:32,359 Speaker 9: what what one point two gigawatts is, So just to 322 00:17:32,400 --> 00:17:35,160 Speaker 9: put it in context, that's about as much as the 323 00:17:35,320 --> 00:17:39,200 Speaker 9: entire metropolis of Lisbon consumes, so it's quite a lot 324 00:17:39,240 --> 00:17:41,359 Speaker 9: of energy. Now why does this matter? I mean, this 325 00:17:41,400 --> 00:17:45,639 Speaker 9: is a big investment. It's a ten billion dollar data center. 326 00:17:45,760 --> 00:17:49,439 Speaker 9: This is huge for Portugal, and Portugal is really trying 327 00:17:49,480 --> 00:17:52,320 Speaker 9: to say, hey, we're not just tourism, even though it 328 00:17:52,400 --> 00:17:56,520 Speaker 9: accounts for about a quarter of GDP and a lot 329 00:17:56,560 --> 00:18:01,160 Speaker 9: of jobs. So incredibly important of this still for the economy, 330 00:18:01,640 --> 00:18:05,199 Speaker 9: but that was important to bring the economy out of 331 00:18:05,200 --> 00:18:08,800 Speaker 9: the crisis, out of the not just the financial crisis, 332 00:18:08,800 --> 00:18:11,760 Speaker 9: but the sovereign deck crisis. But now, okay, let's invest 333 00:18:11,760 --> 00:18:15,000 Speaker 9: in the future. This is where it's at. The government 334 00:18:15,119 --> 00:18:18,000 Speaker 9: is making it easier for these companies to come here. 335 00:18:18,200 --> 00:18:21,600 Speaker 9: I spoke to the Stark Campus Data Center CEO and 336 00:18:21,680 --> 00:18:24,240 Speaker 9: he said, you know, we were welcomed with open arms. 337 00:18:24,880 --> 00:18:29,399 Speaker 9: And the Chinese battery maker calb is the fourth largest 338 00:18:29,400 --> 00:18:31,719 Speaker 9: battery maker in the world, so this is quite significant 339 00:18:31,760 --> 00:18:36,240 Speaker 9: as well. That's a two billion euro investment. They just 340 00:18:36,280 --> 00:18:40,800 Speaker 9: broke ground on their first battery factory outside of China. 341 00:18:40,840 --> 00:18:45,359 Speaker 9: They picked seeing this tiny, tiny town as the gateway 342 00:18:46,000 --> 00:18:49,800 Speaker 9: into the European Union and this was really heralded by 343 00:18:49,840 --> 00:18:53,240 Speaker 9: both sides of the political spectrum as a big step 344 00:18:53,280 --> 00:18:57,280 Speaker 9: forward for Portugal in terms of the green energy transition. 345 00:18:57,760 --> 00:19:00,560 Speaker 3: Yeah, lots of visit is bit of population in Portugal 346 00:19:00,600 --> 00:19:05,439 Speaker 3: only just about ten million people. But the focus on 347 00:19:05,560 --> 00:19:08,880 Speaker 3: data centers, you know, raises the same question for Portugal 348 00:19:08,880 --> 00:19:12,479 Speaker 3: as across Europe, which is that the AI boom is 349 00:19:12,640 --> 00:19:16,520 Speaker 3: power hungry. There will be growing power demands. There's a 350 00:19:16,560 --> 00:19:19,840 Speaker 3: worry about whether it's going to strain Portugal's energy system. 351 00:19:19,920 --> 00:19:23,520 Speaker 3: I mean, we did see blackouts in Portugal earlier this 352 00:19:23,720 --> 00:19:27,320 Speaker 3: year and that was blamed on a number of factors, 353 00:19:27,359 --> 00:19:29,199 Speaker 3: but one of them was you know the green and 354 00:19:29,240 --> 00:19:32,480 Speaker 3: clean energy system, there is the infrastructure going to be 355 00:19:32,520 --> 00:19:33,240 Speaker 3: able to cope. 356 00:19:33,800 --> 00:19:36,640 Speaker 9: So that's the big question, and there's been a lot 357 00:19:36,640 --> 00:19:38,919 Speaker 9: of discussion at the government level but also at the 358 00:19:38,920 --> 00:19:42,919 Speaker 9: company level over who really should take the lead on 359 00:19:43,240 --> 00:19:46,119 Speaker 9: investing in the grid infrastructure here. 360 00:19:46,440 --> 00:19:48,840 Speaker 7: We actually had EDP that's. 361 00:19:48,640 --> 00:19:52,679 Speaker 9: Portugal's biggest utility today, saying that it plans to allocate 362 00:19:53,359 --> 00:19:57,159 Speaker 9: a significant amount of money into investing in the grid 363 00:19:57,640 --> 00:19:59,040 Speaker 9: here in Portugal, but. 364 00:19:59,040 --> 00:20:01,800 Speaker 7: Also in Spain where they have a market. 365 00:20:01,840 --> 00:20:04,920 Speaker 9: And I'll just tell you that number three point six 366 00:20:05,040 --> 00:20:09,920 Speaker 9: billion euros in electricity, grids and infrastructure through twenty twenty eight. 367 00:20:09,960 --> 00:20:13,159 Speaker 7: That's a big number, Caroline. So the problem here, or 368 00:20:13,440 --> 00:20:13,800 Speaker 7: I mean, I. 369 00:20:13,800 --> 00:20:17,080 Speaker 9: Guess the issue I wouldn't call it a problem, is 370 00:20:17,119 --> 00:20:22,000 Speaker 9: that Portugal uses renewable energy for about seventy percent of 371 00:20:22,040 --> 00:20:26,080 Speaker 9: its energy consumption, so that's a pretty big proportion, and 372 00:20:26,119 --> 00:20:29,480 Speaker 9: it still also imports a bit of energy, a lot 373 00:20:29,520 --> 00:20:33,760 Speaker 9: of that from Spain. So whether to kind of reduce 374 00:20:33,800 --> 00:20:37,359 Speaker 9: the reliance on the Spanish grid, that's one question. Whether 375 00:20:37,440 --> 00:20:40,600 Speaker 9: to improve the infrastructure here and whether it makes sense 376 00:20:40,640 --> 00:20:43,680 Speaker 9: for private companies to do that and share the load 377 00:20:43,720 --> 00:20:46,520 Speaker 9: with the government these are all still questions and there's 378 00:20:46,560 --> 00:20:51,199 Speaker 9: still a lot of looking into what happened around that blackout. 379 00:20:51,600 --> 00:20:55,159 Speaker 9: The Portugal does like to blame its neighbors in Spain 380 00:20:55,240 --> 00:20:55,479 Speaker 9: for that. 381 00:20:55,880 --> 00:21:01,120 Speaker 3: Indeed, in terms of startups, Portugal's also got an interesting 382 00:21:01,240 --> 00:21:05,440 Speaker 3: scene there Sword Health, this startup that uses AI for 383 00:21:05,920 --> 00:21:09,479 Speaker 3: medical rehabilitation, for example, that has raised quite a lot 384 00:21:09,520 --> 00:21:13,480 Speaker 3: of money and is now more valuable than everything other 385 00:21:13,560 --> 00:21:17,800 Speaker 3: than about five listed companies in Lisbon. Is that part 386 00:21:17,840 --> 00:21:19,800 Speaker 3: of a kind of growing scene as well? If you're 387 00:21:19,800 --> 00:21:22,119 Speaker 3: seeing data centers, you're seeing all of this interest. Is 388 00:21:22,160 --> 00:21:25,919 Speaker 3: there also a bit of a growing startup scene in Portugal? 389 00:21:26,600 --> 00:21:29,400 Speaker 9: Yeah, there is, and you know, there has been an 390 00:21:29,400 --> 00:21:33,800 Speaker 9: attempt for the past decade or so to really nurture 391 00:21:34,359 --> 00:21:37,440 Speaker 9: startups in Portugal. But I think this one really grabbed 392 00:21:37,440 --> 00:21:40,520 Speaker 9: my attention, Caroline, because it was valued at three billion 393 00:21:40,560 --> 00:21:44,240 Speaker 9: dollars in a financing round last year, and this year 394 00:21:44,280 --> 00:21:47,240 Speaker 9: in June it was valued at four billion dollars, and 395 00:21:47,440 --> 00:21:50,680 Speaker 9: as you said, this is this is pretty significant for Portugal. 396 00:21:50,880 --> 00:21:54,520 Speaker 9: It's one of the most valuable private companies for sure, 397 00:21:54,640 --> 00:21:58,080 Speaker 9: and one of the most valuable companies you know, full 398 00:21:58,160 --> 00:22:01,680 Speaker 9: stop in Portugal and It's also backed by Founders fund, 399 00:22:01,720 --> 00:22:05,440 Speaker 9: so very high profile investors looking at this company and. 400 00:22:05,359 --> 00:22:07,440 Speaker 7: What it does is obviously quite interesting. 401 00:22:07,800 --> 00:22:13,560 Speaker 9: It's looking at pain management solutions and physical rehabilitation using AI, 402 00:22:13,760 --> 00:22:17,719 Speaker 9: obviously a buzzword for investors at the moment. But you know, 403 00:22:17,760 --> 00:22:21,360 Speaker 9: the fact that you can found these companies in Portugal, 404 00:22:21,680 --> 00:22:24,720 Speaker 9: you can also stay here not necessarily have to go 405 00:22:24,760 --> 00:22:27,879 Speaker 9: all the way to Silicon Valley to scale suggests that 406 00:22:28,400 --> 00:22:32,000 Speaker 9: the country is taking these things more seriously, is understanding 407 00:22:32,040 --> 00:22:35,960 Speaker 9: that these companies need more of an infrastructure around them, 408 00:22:35,960 --> 00:22:39,240 Speaker 9: and the government actually just recently said it would cut 409 00:22:39,440 --> 00:22:42,760 Speaker 9: taxes for companies, which would be a big help as well. 410 00:22:43,000 --> 00:22:46,800 Speaker 3: Okay, that's interesting in terms of what the government is 411 00:22:46,880 --> 00:22:50,560 Speaker 3: hoping for and what the public in Portugal make of 412 00:22:50,600 --> 00:22:54,240 Speaker 3: all of this. Portugal still got a GDP per capita 413 00:22:54,280 --> 00:22:57,520 Speaker 3: that is amongst the lowest in Western Europe, so there 414 00:22:57,600 --> 00:22:59,920 Speaker 3: must surely be a desire for the economy to do 415 00:23:00,119 --> 00:23:03,120 Speaker 3: you well, But what is the government's political ambition, what's 416 00:23:03,160 --> 00:23:04,600 Speaker 3: the response from the public. 417 00:23:05,359 --> 00:23:08,920 Speaker 9: So there's always a tension between the foreign money that's 418 00:23:09,000 --> 00:23:12,439 Speaker 9: coming into Portugal, which has obviously been hugely important for 419 00:23:12,480 --> 00:23:16,600 Speaker 9: the economy, not just these kind of investments into tech, 420 00:23:16,840 --> 00:23:21,880 Speaker 9: but also from overseas residents coming to live here. Portugal 421 00:23:21,920 --> 00:23:28,159 Speaker 9: has seen a big rise in American, Chinese, Russian citizens 422 00:23:28,200 --> 00:23:31,040 Speaker 9: coming to live here. There's a tension between that and 423 00:23:31,080 --> 00:23:33,640 Speaker 9: what it can do for the country and the country's economy. 424 00:23:34,640 --> 00:23:37,880 Speaker 9: But actually, you know what that means for the locals 425 00:23:37,920 --> 00:23:41,040 Speaker 9: who have always been here and are seeing the price 426 00:23:41,200 --> 00:23:45,879 Speaker 9: of real estate go up beyond affordable levels. The housing 427 00:23:45,880 --> 00:23:51,679 Speaker 9: affordability in Portugal has actually seen the worst decline in 428 00:23:51,760 --> 00:23:56,399 Speaker 9: the European Union in the past decades. So it's a 429 00:23:56,480 --> 00:24:00,480 Speaker 9: huge tension point for the Portuguese public here. When I 430 00:24:00,520 --> 00:24:03,720 Speaker 9: went down to Size and spoke to locals there, you know, 431 00:24:03,760 --> 00:24:06,359 Speaker 9: they said, it's all good and we respect what the 432 00:24:06,359 --> 00:24:09,880 Speaker 9: government's trying to do in bringing Chinese and American investment here. 433 00:24:10,440 --> 00:24:13,679 Speaker 9: But our buildings are, you know, crumbling. We only have 434 00:24:13,760 --> 00:24:20,160 Speaker 9: one healthcare center, the hospitals far away, the roads are cracking. 435 00:24:20,320 --> 00:24:23,520 Speaker 9: You know, where is the investment actually in locals and 436 00:24:24,119 --> 00:24:27,200 Speaker 9: in what we care about, and in creating jobs for 437 00:24:27,720 --> 00:24:31,600 Speaker 9: people who really still struggle to pay the rent and 438 00:24:32,320 --> 00:24:36,240 Speaker 9: their rising energy bills and send their children to school. 439 00:24:36,320 --> 00:24:39,719 Speaker 9: So there's always that tension between local interests and what 440 00:24:39,760 --> 00:24:41,879 Speaker 9: the government is doing at the macro level, which is 441 00:24:41,960 --> 00:24:44,840 Speaker 9: attrapped as much foreign investment as it can. 442 00:24:45,600 --> 00:24:48,440 Speaker 3: Very interesting. Sophia, thank you so much for spending some 443 00:24:48,480 --> 00:24:51,560 Speaker 3: time with us. That is blimpag's Portugal bureau chief, Sofia 444 00:24:51,920 --> 00:24:56,840 Speaker 3: auto Ecosta. Of course, this comes ahead of the Web Summit, 445 00:24:57,320 --> 00:25:01,399 Speaker 3: which takes place in Portugal in the next few days, 446 00:25:01,440 --> 00:25:05,480 Speaker 3: and we'll continue our full coverage and analysis of Europe's 447 00:25:05,520 --> 00:25:09,080 Speaker 3: AI build out here on Bloomberg Radio. I'm Caroline Hepga 448 00:25:09,119 --> 00:25:11,480 Speaker 3: in London. You can catch us every weekday morning for 449 00:25:11,560 --> 00:25:14,280 Speaker 3: Bloomberg Daybreak. You at beginning at six am in London. 450 00:25:14,480 --> 00:25:16,200 Speaker 3: That's one am on Wall Street. 451 00:25:16,400 --> 00:25:20,199 Speaker 2: Nathan, Thanks Caroline. Man coming up on Bloomberg day Break. Weekend. 452 00:25:20,280 --> 00:25:23,320 Speaker 2: Singles Day in China is approaching. We'll check in on 453 00:25:23,359 --> 00:25:26,600 Speaker 2: what's become the largest shopping day in the world. I'm 454 00:25:26,680 --> 00:25:40,600 Speaker 2: Nathan Hagar and this is Bloomberg. I'm Nathan Hager in 455 00:25:40,760 --> 00:25:43,199 Speaker 2: Washington with your global look ahead at the top stories 456 00:25:43,200 --> 00:25:45,680 Speaker 2: for investors in the coming week. Now we want to 457 00:25:45,720 --> 00:25:48,760 Speaker 2: head to China, where Singles Day will be celebrated in 458 00:25:48,800 --> 00:25:51,680 Speaker 2: the coming week. It's the unofficial holiday that's become the 459 00:25:51,760 --> 00:25:55,520 Speaker 2: largest shopping day in the world, and it's spreading across 460 00:25:55,640 --> 00:25:58,400 Speaker 2: Southeast Asia. Let's get to the host of the Daybreak 461 00:25:58,440 --> 00:26:01,040 Speaker 2: Asia podcast, Doug List for a preview. 462 00:26:01,600 --> 00:26:05,840 Speaker 4: Nathan, retailers in China are not taking any chances this year. 463 00:26:05,920 --> 00:26:09,600 Speaker 4: Many have stretched their sales to as long as five weeks. Now, 464 00:26:09,600 --> 00:26:12,639 Speaker 4: we know the Chinese economy has been struggling. Weak domestic 465 00:26:12,680 --> 00:26:17,000 Speaker 4: demand has become call it a characteristic and so e 466 00:26:17,040 --> 00:26:20,600 Speaker 4: commerce giants like Ali, Babajd dot Com are working to 467 00:26:20,840 --> 00:26:24,520 Speaker 4: entice shoppers. The question is whether they'll succeed. For a 468 00:26:24,560 --> 00:26:27,760 Speaker 4: closer look, I'm joined by Bloomberg analyst Katherine Limb. She 469 00:26:27,960 --> 00:26:32,120 Speaker 4: covers the retail and e commerce industries in Asia from 470 00:26:32,160 --> 00:26:34,879 Speaker 4: our bureau in Singapore. Catherine, thank you so much for 471 00:26:34,920 --> 00:26:37,040 Speaker 4: making time to chat with me. Can we talk about 472 00:26:37,040 --> 00:26:41,480 Speaker 4: the big picture? First? Talk to me about expectations and 473 00:26:41,640 --> 00:26:44,920 Speaker 4: the extent to which these big retail names are concerned, 474 00:26:44,960 --> 00:26:47,000 Speaker 4: perhaps about underperforming. 475 00:26:47,640 --> 00:26:51,680 Speaker 10: We had a very week third quarter in China and 476 00:26:51,880 --> 00:26:56,480 Speaker 10: that's really pushing retailers to bang the book and try 477 00:26:56,480 --> 00:26:59,800 Speaker 10: to get more out of singles Day and in fourth quarter. 478 00:27:00,280 --> 00:27:03,160 Speaker 10: And the reality is, as I speak to retailers over 479 00:27:03,200 --> 00:27:06,400 Speaker 10: the last two weeks itself, Singles Days off to a 480 00:27:06,440 --> 00:27:10,000 Speaker 10: fairly weak start. You know, we're halfway through the shopping 481 00:27:10,080 --> 00:27:13,840 Speaker 10: festival right now. I do see more promotions coming up 482 00:27:14,080 --> 00:27:16,720 Speaker 10: and keeping the fingers crossed that that's enough to really 483 00:27:16,760 --> 00:27:18,160 Speaker 10: try and push thing ahead. 484 00:27:18,480 --> 00:27:21,800 Speaker 4: So, Catherine, I'm wondering about the role of the government 485 00:27:21,880 --> 00:27:25,400 Speaker 4: in trying to make Singles Day a success. What steps, 486 00:27:25,400 --> 00:27:27,439 Speaker 4: if any, has Beijing taken. 487 00:27:28,160 --> 00:27:32,760 Speaker 10: Well, we've seen the offer of you know, vouchers perks. 488 00:27:33,119 --> 00:27:36,960 Speaker 10: They are also supporting e commerce platforms and retailers to 489 00:27:37,080 --> 00:27:40,600 Speaker 10: try and come up with better service levels. But at 490 00:27:40,640 --> 00:27:42,879 Speaker 10: the end of the day, it's really the confidence of 491 00:27:42,920 --> 00:27:48,600 Speaker 10: the consumers right now, particularly if property prices as at 492 00:27:48,680 --> 00:27:53,520 Speaker 10: value still says very low incomes outlooks still stay uncertain, 493 00:27:53,840 --> 00:27:56,280 Speaker 10: it's going to be hard for consumers to want to 494 00:27:56,320 --> 00:28:00,240 Speaker 10: spend more in you know, an environment of uncertainties. 495 00:28:00,200 --> 00:28:04,320 Speaker 4: About US brands like Apple and Nike, what are the 496 00:28:04,359 --> 00:28:05,959 Speaker 4: expectations for these brands? 497 00:28:06,600 --> 00:28:06,800 Speaker 11: Now? 498 00:28:06,840 --> 00:28:08,920 Speaker 10: What isn't just thing is that you know, for these 499 00:28:08,960 --> 00:28:11,359 Speaker 10: two brands, you know, they were off to a very 500 00:28:11,400 --> 00:28:14,120 Speaker 10: week start since the beginning of the year, and we'll 501 00:28:14,160 --> 00:28:17,800 Speaker 10: actually start to see things coming up better for them 502 00:28:17,960 --> 00:28:22,320 Speaker 10: different fundamental reasons. Off a lower base, but they are 503 00:28:22,359 --> 00:28:25,159 Speaker 10: creeping up. And I'll take Nike for instance. On the 504 00:28:25,160 --> 00:28:27,919 Speaker 10: first day of Ali Baba sale, they were off to 505 00:28:28,119 --> 00:28:31,720 Speaker 10: a very weak start. They did not lead the sportswear 506 00:28:31,800 --> 00:28:35,080 Speaker 10: sales ranking as they did before in the last two years. 507 00:28:35,520 --> 00:28:37,639 Speaker 10: And you know, two weeks down the road, they've actually 508 00:28:37,680 --> 00:28:40,440 Speaker 10: creep up to being the third, nowhere near the first, 509 00:28:40,480 --> 00:28:44,280 Speaker 10: but you know, still a good you know, improvement, and 510 00:28:44,320 --> 00:28:46,479 Speaker 10: again I'm hoping to actually see more over the next 511 00:28:46,520 --> 00:28:47,040 Speaker 10: two years. 512 00:28:47,160 --> 00:28:49,920 Speaker 4: So do you think it's more likely that Chinese consumers 513 00:28:50,040 --> 00:28:53,120 Speaker 4: will favor the local brands this year, perhaps more so 514 00:28:53,240 --> 00:28:54,240 Speaker 4: than they have in the past. 515 00:28:54,960 --> 00:28:56,640 Speaker 10: I don't think it's going to be that this thing 516 00:28:56,760 --> 00:28:59,720 Speaker 10: this year. It's moll about, you know, the value proposition 517 00:28:59,840 --> 00:29:03,080 Speaker 10: that on the table for the consumers. We are at 518 00:29:03,120 --> 00:29:08,080 Speaker 10: a somewhat balance point between nationalism, being very nationalistic about 519 00:29:08,120 --> 00:29:10,880 Speaker 10: local brands itself and foreign brands. At the end of 520 00:29:10,920 --> 00:29:13,040 Speaker 10: the day, it is what is on the table at 521 00:29:13,080 --> 00:29:15,400 Speaker 10: a good price, you know, for the consumers, and they 522 00:29:15,400 --> 00:29:18,200 Speaker 10: will be willing to take that if it comes to Not. 523 00:29:18,320 --> 00:29:21,920 Speaker 4: A day goes by when we're not discussing artificial intelligence, 524 00:29:21,960 --> 00:29:25,000 Speaker 4: and I'm curious about the way in which companies like 525 00:29:25,120 --> 00:29:29,200 Speaker 4: JD and Baba are using AI to drive sales this year. 526 00:29:29,920 --> 00:29:33,800 Speaker 10: Well, there's lots of you know AI shopping assistanms, lots 527 00:29:33,840 --> 00:29:37,240 Speaker 10: of marketing push, you know, just based on what you 528 00:29:37,440 --> 00:29:40,440 Speaker 10: are browsing. It's a lot more back end rather than 529 00:29:40,520 --> 00:29:43,600 Speaker 10: you know, what we see as consumers itself. But clearly, 530 00:29:43,760 --> 00:29:45,640 Speaker 10: you know, they know what we are looking at and 531 00:29:45,680 --> 00:29:49,880 Speaker 10: they are pushing these items, you know, repeatedly to the 532 00:29:49,960 --> 00:29:53,560 Speaker 10: face of the consumers to try and get the conversion 533 00:29:53,640 --> 00:29:56,719 Speaker 10: rates to actually go up. So you know, this is 534 00:29:56,760 --> 00:30:00,280 Speaker 10: definitely a good period during Singles Day to test start 535 00:30:00,320 --> 00:30:03,920 Speaker 10: some of these algorithms as well as these programs, because 536 00:30:03,960 --> 00:30:06,640 Speaker 10: that's where they're going to actually try and improvise on 537 00:30:06,720 --> 00:30:08,320 Speaker 10: that for twenty twenty six. 538 00:30:08,480 --> 00:30:11,480 Speaker 4: So as long as we're talking about technology, how has 539 00:30:11,520 --> 00:30:14,840 Speaker 4: the smartphone business been performing on the mainland. 540 00:30:15,280 --> 00:30:18,480 Speaker 10: Well, you know, definitely we are still seeing some form 541 00:30:18,520 --> 00:30:21,600 Speaker 10: of subsidies coming through from the government, so that's actually 542 00:30:21,640 --> 00:30:27,800 Speaker 10: helping iphoned seventeen model. So far, the platforms, whether it's 543 00:30:27,880 --> 00:30:31,760 Speaker 10: JD dot Com, Ali Baba's team, or they've been actually 544 00:30:31,800 --> 00:30:34,560 Speaker 10: pushing for more sales of it, and I'll actually like 545 00:30:34,640 --> 00:30:38,000 Speaker 10: to throw in that mate one which has actually ventured 546 00:30:38,080 --> 00:30:41,880 Speaker 10: into speedy delivery or quick commerce for that matter. They 547 00:30:41,960 --> 00:30:46,120 Speaker 10: are also now being able to actually deliver new iPhones 548 00:30:46,200 --> 00:30:48,000 Speaker 10: to you, like, you know, within an hour. 549 00:30:49,000 --> 00:30:51,640 Speaker 4: So we know, Singles Days started in China and since 550 00:30:51,680 --> 00:30:54,680 Speaker 4: then it's spread to many parts of Southeast Asia. So 551 00:30:54,760 --> 00:30:57,280 Speaker 4: I'm curious away from the mainland when you look at 552 00:30:57,280 --> 00:31:00,440 Speaker 4: other jurisdictions. I know you're in Singapore, I'm also thinking 553 00:31:00,480 --> 00:31:04,760 Speaker 4: about Hong Kong, even Taiwan. Are there other jurisdictions that 554 00:31:05,160 --> 00:31:08,040 Speaker 4: are expected to perform, let's say, better than the mainland. 555 00:31:08,800 --> 00:31:11,400 Speaker 10: I think if we actually look firstly at Singles Day, 556 00:31:11,440 --> 00:31:13,880 Speaker 10: Singles Days no longer about China, and I think you're 557 00:31:14,120 --> 00:31:19,920 Speaker 10: right on that that we're also seeing Ali Express, you know, Talubau, Globo, 558 00:31:20,360 --> 00:31:24,360 Speaker 10: JD dot Com Global also launching promotions and campaigns for 559 00:31:24,440 --> 00:31:28,680 Speaker 10: this Singles Day outside of China. So are they doing better? 560 00:31:28,720 --> 00:31:34,120 Speaker 10: I think yes for certain jurisdiction like Singapore for Southeast Asia, 561 00:31:34,240 --> 00:31:36,880 Speaker 10: And it's really because we're off from a very low 562 00:31:36,960 --> 00:31:40,000 Speaker 10: base and we're starting to actually see more of those 563 00:31:40,280 --> 00:31:44,680 Speaker 10: value propositions coming through from Maidi and China products, and 564 00:31:44,920 --> 00:31:47,680 Speaker 10: you know they are actually very decent for the price 565 00:31:47,760 --> 00:31:49,200 Speaker 10: that you're actually paying for them. 566 00:31:49,400 --> 00:31:53,560 Speaker 4: So Catherine, what about experiences, whether it's entertainment or even 567 00:31:53,640 --> 00:31:57,400 Speaker 4: visiting a restaurant? Are these industries expected to do well? 568 00:31:57,880 --> 00:32:02,160 Speaker 10: That has actually taken off during d long National Day holiday. 569 00:32:02,640 --> 00:32:05,880 Speaker 10: And you know, when you talk about restaurants the consumption itself, 570 00:32:06,440 --> 00:32:08,520 Speaker 10: let's not forget that. You know, there is now the 571 00:32:08,640 --> 00:32:14,160 Speaker 10: counter coming in from takeaways, food deliveries. And again, you know, 572 00:32:14,200 --> 00:32:17,840 Speaker 10: I'll go back to what I've just mentioned about the convenience, 573 00:32:18,240 --> 00:32:21,760 Speaker 10: you know, the east of it. You know, we've actually 574 00:32:21,760 --> 00:32:26,920 Speaker 10: seemed the latest catering or restaurant services sales continue to 575 00:32:26,960 --> 00:32:29,959 Speaker 10: actually slowe down. That may be a bit of uptick 576 00:32:30,040 --> 00:32:33,640 Speaker 10: in October. The overall scheme of things, I think more 577 00:32:33,680 --> 00:32:37,760 Speaker 10: people are actually you know, doing food deliveries rather than 578 00:32:37,800 --> 00:32:38,920 Speaker 10: going to the restaurants. 579 00:32:39,200 --> 00:32:41,320 Speaker 4: Catherine, we'll leave it there, Thank you so very much. 580 00:32:41,480 --> 00:32:46,280 Speaker 4: Bloomberg's Katherine Lim our senior analyst covering both retail and 581 00:32:46,520 --> 00:32:50,320 Speaker 4: e commerce across the APAC. From our bureau in Singapore, 582 00:32:50,920 --> 00:32:53,520 Speaker 4: we go to Hong Kong next, where the Global Financial 583 00:32:53,600 --> 00:32:56,600 Speaker 4: Leaders Investment Summer took place over the last week. That's 584 00:32:56,600 --> 00:32:59,960 Speaker 4: where we caught up with Goldman Sachs CEO David Solomon. 585 00:33:00,600 --> 00:33:04,240 Speaker 4: He spoke with Bloomberg TV host Yvonne Mann and David Nglace. 586 00:33:04,560 --> 00:33:08,440 Speaker 4: The conversation started with a question about the US China 587 00:33:08,520 --> 00:33:09,200 Speaker 4: trade truths. 588 00:33:09,920 --> 00:33:12,600 Speaker 11: I think at the moment, you know, a de escalation 589 00:33:12,920 --> 00:33:15,040 Speaker 11: is a good thing, but there's obviously a lot of 590 00:33:15,040 --> 00:33:19,920 Speaker 11: work to do to really arrive at a real stable. 591 00:33:19,640 --> 00:33:22,640 Speaker 12: Deal that can endure, you know, over a period of time. 592 00:33:22,680 --> 00:33:25,520 Speaker 11: I'm encouraged by the prospect of a potential visit from 593 00:33:25,520 --> 00:33:28,040 Speaker 11: the US President that was telegraphed in the fall. But 594 00:33:28,080 --> 00:33:30,000 Speaker 11: for the moment, you know, I did not think the 595 00:33:30,160 --> 00:33:33,200 Speaker 11: escalation on either side was constructive, and so you know, 596 00:33:33,280 --> 00:33:34,800 Speaker 11: I much prefer a de escalation. 597 00:33:34,960 --> 00:33:37,320 Speaker 12: I think both both sides. 598 00:33:37,360 --> 00:33:40,440 Speaker 11: Really had a purpose in that meeting to talk constructively, 599 00:33:40,920 --> 00:33:43,520 Speaker 11: to have a more de escalated environment, and that allows 600 00:33:43,560 --> 00:33:46,520 Speaker 11: now for constructive conversations as. 601 00:33:46,400 --> 00:33:47,040 Speaker 12: They move forward. 602 00:33:47,120 --> 00:33:49,680 Speaker 13: One year truce though between the two is that a 603 00:33:49,680 --> 00:33:51,200 Speaker 13: good or bad thing? I mean, what did to do 604 00:33:51,240 --> 00:33:53,480 Speaker 13: in terms of business sentiment when there was a twelve 605 00:33:53,520 --> 00:33:54,160 Speaker 13: month time frame? 606 00:33:54,200 --> 00:33:57,600 Speaker 11: Now it's better then, it's better than an escalation at 607 00:33:57,640 --> 00:33:59,880 Speaker 11: on reasonable levels, which is kind of where we were, 608 00:34:00,320 --> 00:34:03,720 Speaker 11: you know, over the most recent time. Trade negotiations are 609 00:34:03,720 --> 00:34:06,640 Speaker 11: complicated and there are a lot of issues on the table. 610 00:34:06,760 --> 00:34:10,439 Speaker 11: They need thoughtful responses and responses that can be durable. Yes, 611 00:34:10,480 --> 00:34:13,200 Speaker 11: there's some uncertainty because it's a one year delay at 612 00:34:13,200 --> 00:34:15,640 Speaker 11: all of this, but it's also a realistic period of 613 00:34:15,680 --> 00:34:17,960 Speaker 11: time to try to get the right kind of deal 614 00:34:18,040 --> 00:34:20,960 Speaker 11: done so both economies can move forward in a constructive way. 615 00:34:20,960 --> 00:34:22,800 Speaker 11: And look, these are the two most important economies in 616 00:34:22,840 --> 00:34:26,120 Speaker 11: the world. I think it's very important that you know, 617 00:34:26,200 --> 00:34:28,600 Speaker 11: we arrive in a better place where we can both 618 00:34:28,640 --> 00:34:31,680 Speaker 11: participate constructively with each other in the global growth of 619 00:34:31,719 --> 00:34:32,440 Speaker 11: the world. 620 00:34:32,719 --> 00:34:35,480 Speaker 14: I mean, speaking of let me borrow your phrase, participate. 621 00:34:35,600 --> 00:34:39,280 Speaker 14: There's been a resurgence in equity capital market raising here. 622 00:34:39,120 --> 00:34:39,720 Speaker 5: In Hong Kong. 623 00:34:40,239 --> 00:34:43,120 Speaker 14: A lot of the Chinese companies, tech or otherwise are 624 00:34:43,160 --> 00:34:45,359 Speaker 14: raising capital for the future. I want to get your 625 00:34:45,440 --> 00:34:47,160 Speaker 14: sense as someone who sits in New York, you travel, 626 00:34:47,160 --> 00:34:49,359 Speaker 14: of course all around the world. Is there a lot 627 00:34:49,400 --> 00:34:53,680 Speaker 14: of appetite now from US based investors to participate by 628 00:34:53,800 --> 00:34:57,000 Speaker 14: giving that capital to Chinese companies right now? In order 629 00:34:57,120 --> 00:34:59,959 Speaker 14: to do there's you know, I realize there. 630 00:35:00,000 --> 00:35:03,800 Speaker 11: An sure, there's. 631 00:35:02,360 --> 00:35:04,680 Speaker 12: More appetite for it than there was twelve months ago. 632 00:35:04,719 --> 00:35:09,200 Speaker 11: I remember actually last November sitting in a dinner in 633 00:35:09,239 --> 00:35:12,640 Speaker 11: the United States with a group of US investors and 634 00:35:12,719 --> 00:35:14,600 Speaker 11: this topic came up, and there were a couple of 635 00:35:14,640 --> 00:35:19,040 Speaker 11: investors that basically said, we all should be looking to China. 636 00:35:19,280 --> 00:35:22,000 Speaker 12: And the reason, the reason that had evolved that way 637 00:35:22,520 --> 00:35:23,280 Speaker 12: is if you look. 638 00:35:23,160 --> 00:35:27,120 Speaker 11: Last fall, the prices had gotten so cheap, the capital 639 00:35:27,200 --> 00:35:30,279 Speaker 11: flows had moved so in the other direction that you 640 00:35:30,440 --> 00:35:33,120 Speaker 11: just knew that things would come more into balance and 641 00:35:33,200 --> 00:35:34,040 Speaker 11: there'd be a recycling. 642 00:35:34,040 --> 00:35:35,120 Speaker 12: And we've seen that recycling. 643 00:35:35,120 --> 00:35:37,520 Speaker 11: You've seen a big move and prices year over year, 644 00:35:37,800 --> 00:35:40,000 Speaker 11: you've seen more foreign capital come in. 645 00:35:39,960 --> 00:35:41,000 Speaker 12: And start to participate. 646 00:35:41,400 --> 00:35:45,520 Speaker 11: That's a fundamentally different question about the big capital allocators 647 00:35:45,960 --> 00:35:49,280 Speaker 11: really fundamentally shifting their allocations up to be higher again. 648 00:35:49,520 --> 00:35:50,600 Speaker 12: So far, direct. 649 00:35:50,280 --> 00:35:53,319 Speaker 11: Investment in China has come down, and I think one 650 00:35:53,320 --> 00:35:55,920 Speaker 11: of the big questions is until we understand kind of 651 00:35:55,920 --> 00:36:00,839 Speaker 11: the trade and the geopolitical landscape, it's harder see significant 652 00:36:00,880 --> 00:36:04,239 Speaker 11: shifts back to higher levels of foreign direct investment and. 653 00:36:04,239 --> 00:36:05,360 Speaker 12: More capital allocation. 654 00:36:05,719 --> 00:36:07,920 Speaker 11: But for the moment, those flows are making for a 655 00:36:07,920 --> 00:36:11,200 Speaker 11: better IPO market here and more opportunities here. 656 00:36:11,680 --> 00:36:12,360 Speaker 12: How do you look at that? 657 00:36:12,400 --> 00:36:15,520 Speaker 13: I mean, the whole competition has kind of changed into 658 00:36:15,560 --> 00:36:17,600 Speaker 13: the dynamics, right. You have so many of these Chinese 659 00:36:17,680 --> 00:36:20,040 Speaker 13: banks now that are doing some of these deals with 660 00:36:20,120 --> 00:36:23,160 Speaker 13: Chinese companies. When it comes to going public, how does 661 00:36:23,200 --> 00:36:24,760 Speaker 13: Goldman Sachs compete. 662 00:36:24,800 --> 00:36:27,160 Speaker 11: Well, you know, goldmin Sex competes just fine, thank you 663 00:36:27,320 --> 00:36:29,800 Speaker 11: very much. When it comes to taking public companies public 664 00:36:29,800 --> 00:36:32,360 Speaker 11: on a global stage, Golden Sex is a leading position. 665 00:36:32,360 --> 00:36:34,760 Speaker 12: We've had a leading position for fifty years. 666 00:36:35,640 --> 00:36:38,160 Speaker 11: And there's always competition in the business, and you know, 667 00:36:38,200 --> 00:36:41,560 Speaker 11: we'll continue to compete, so we welcome competition. But we 668 00:36:41,719 --> 00:36:43,799 Speaker 11: have a pretty active footprint out here, as you well know. 669 00:36:44,120 --> 00:36:46,560 Speaker 11: They have a pretty active footprint around the world. And look, 670 00:36:46,600 --> 00:36:49,520 Speaker 11: one of the big advantages. I just had breakfast with. 671 00:36:49,680 --> 00:36:52,239 Speaker 12: A company here that. 672 00:36:52,800 --> 00:36:55,000 Speaker 11: It's actually a Chinese company, but the you know, the CEO, 673 00:36:55,120 --> 00:36:58,399 Speaker 11: the founder was here and why does he value Golden Sex. 674 00:36:58,440 --> 00:37:01,640 Speaker 11: He values Golden Sex because we have a sess to people, information, 675 00:37:01,800 --> 00:37:04,640 Speaker 11: capital markets all over the world, you know, not just 676 00:37:04,680 --> 00:37:05,839 Speaker 11: in a narrow portion of the world. 677 00:37:05,920 --> 00:37:08,680 Speaker 12: And so it's a competitive business. It always will be. 678 00:37:08,719 --> 00:37:11,040 Speaker 12: But I'm comfortable that we have the resources in the 679 00:37:11,040 --> 00:37:12,080 Speaker 12: position to compete. 680 00:37:11,800 --> 00:37:15,560 Speaker 14: Effectively, right and you know, you know I've been greeting up, 681 00:37:15,600 --> 00:37:17,719 Speaker 14: of course, and I understand your history. You guys have 682 00:37:17,760 --> 00:37:19,640 Speaker 14: been doing business in China very long time. You guys 683 00:37:19,719 --> 00:37:22,319 Speaker 14: took the big banks public back twenty plus years ago. 684 00:37:22,400 --> 00:37:25,719 Speaker 14: So I mean you're headed there in my understanding, after here, 685 00:37:25,760 --> 00:37:28,799 Speaker 14: you're going to China. Of course you speak with regulators, 686 00:37:28,800 --> 00:37:32,359 Speaker 14: what have you? What's your long term vision for difranchise 687 00:37:32,520 --> 00:37:35,040 Speaker 14: in Greater China? What do you want what do you 688 00:37:35,080 --> 00:37:36,759 Speaker 14: want your franchise to become longer? 689 00:37:37,320 --> 00:37:38,840 Speaker 11: I think you have to look at Goldman Sachs and 690 00:37:38,880 --> 00:37:43,000 Speaker 11: just think strategically that as a global firm, that when 691 00:37:43,040 --> 00:37:44,799 Speaker 11: you think about our businesses, what are our two big 692 00:37:44,840 --> 00:37:48,160 Speaker 11: businesses global banking and markets, the investment banking and trading 693 00:37:48,200 --> 00:37:51,440 Speaker 11: business and asset and wealth management. And so if you 694 00:37:51,440 --> 00:37:53,520 Speaker 11: think about how we think strategically about the firm, what 695 00:37:53,560 --> 00:37:56,799 Speaker 11: advantages does the firm have besides the fact that we 696 00:37:56,880 --> 00:38:00,680 Speaker 11: have at scale businesses, we're very good at the those activities, 697 00:38:00,719 --> 00:38:02,600 Speaker 11: we're leaders of those activities, and we have a right 698 00:38:02,640 --> 00:38:04,880 Speaker 11: to compete and win, you know with those activities. 699 00:38:05,440 --> 00:38:09,040 Speaker 4: That was David Solomon, CEO of Goldman Sachs, speaking with 700 00:38:09,080 --> 00:38:12,600 Speaker 4: Bloomberg TV host Vonn Men and David Nglace at the 701 00:38:12,600 --> 00:38:17,160 Speaker 4: Global Financial Leader's Investment Summit in Hong Kong. I'm Doug Krisner. 702 00:38:17,239 --> 00:38:20,160 Speaker 4: You can catch us weekdays for the Daybreak Asia podcast. 703 00:38:20,560 --> 00:38:22,799 Speaker 4: It's available wherever you get your podcast. 704 00:38:23,280 --> 00:38:26,439 Speaker 2: Nathan, Thanks Doug, and that does it for this edition 705 00:38:26,520 --> 00:38:29,839 Speaker 2: of Bloomberg Daybreak Weekend. Join us again Monday morning at 706 00:38:29,880 --> 00:38:32,600 Speaker 2: five am Wall Street Time for the latest on markets 707 00:38:32,600 --> 00:38:35,319 Speaker 2: overseas and the news you need to start your day. 708 00:38:35,719 --> 00:38:39,040 Speaker 2: I'm Nathan Hager. Stay with us. Top stories and global 709 00:38:39,080 --> 00:38:50,560 Speaker 2: business headlines are coming up right now.