WEBVTT - Private Markets' Appetite for Tech and Tough Big Tech Layoffs in Europe 0:00:01.320 --> 0:00:04.720 From the heart of where Innovation, money and power Collie 0:00:04.880 --> 0:00:09.600 in Silicon Valley, NBR. This is Bloomberg Technology with Caroline 0:00:09.680 --> 0:00:26.720 Hyde and Ed Ludlow. I'm Caroline Hyde of Bloomberg's World 0:00:26.760 --> 0:00:29.680 headquarters in New York, and I'med Ludlow in San Francisco. 0:00:29.760 --> 0:00:32.040 This is Bloomberg Technology. Coming up, we'll get a look 0:00:32.040 --> 0:00:36.159 at investing in private versus public markets. Karen Fronsky's with us, 0:00:36.240 --> 0:00:39.840 head of private Equity Investing over at Fidelity, and after 0:00:39.880 --> 0:00:42.520 planning the largest round of layoffs in big tech history, 0:00:42.560 --> 0:00:45.280 Amazon and Google are now learning how difficult it is 0:00:45.440 --> 0:00:48.120 to card jobs in Europe. We'll tell you why and 0:00:48.200 --> 0:00:50.360 how do you get your news We'll speak to the 0:00:50.400 --> 0:00:53.840 CEO of Substack as a newsletter publisher. There's a continuous 0:00:53.880 --> 0:00:57.520 growth in a tough market for fundraising. But first let's 0:00:57.520 --> 0:01:00.480 talk about money markets in the public to Maine. We're 0:01:00.480 --> 0:01:02.720 looking at the NASDAK currently up four ten percent. It 0:01:02.720 --> 0:01:04.880 was underwater earlier. We're seeing a bit of a mood 0:01:04.880 --> 0:01:06.679 shift as we entered towards the latter half of the 0:01:06.680 --> 0:01:09.920 trading day. Remember shortened trading week for many. In terms 0:01:09.959 --> 0:01:12.720 of the equity markets, the FX markets remain open tomorrow 0:01:12.720 --> 0:01:14.240 on what is known as Good Friday, we take a 0:01:14.319 --> 0:01:16.640 day off. We see the NASDAK push higher as people 0:01:16.640 --> 0:01:18.360 just start to get to grips of where the job's 0:01:18.400 --> 0:01:20.039 data is going to be. I'm also looking at what's 0:01:20.040 --> 0:01:22.160 happening with the SOX currently up just about a tenth 0:01:22.200 --> 0:01:24.040 of a percent at the moment, ship markets managing to 0:01:24.800 --> 0:01:27.000 come away from some of their lows yesterday, the ten 0:01:27.080 --> 0:01:29.240 year yield, though still lower, seventh straight day that we're 0:01:29.240 --> 0:01:31.640 seeing broncos falling for the ten year debt. Let's look 0:01:31.640 --> 0:01:33.360 at on let's look of what's happening in crypto markets, 0:01:33.400 --> 0:01:36.039 because we're basically still holding near that all important twenty 0:01:36.080 --> 0:01:38.120 eight thousand a level end. We just don't seem to 0:01:38.120 --> 0:01:40.440 be able to break through it as the dollar waivers 0:01:40.480 --> 0:01:42.000 on the day as we look towards that all important 0:01:42.080 --> 0:01:44.560 jobs data tomorrow. But dig in on the micro moves 0:01:44.600 --> 0:01:47.200 at the moment. Yeah, two moves that caught my eye. 0:01:47.240 --> 0:01:49.920 Alphabet parent company Google up two and a half percent. 0:01:50.000 --> 0:01:52.840 The Wall Street Journal reporting that Google is going to 0:01:52.880 --> 0:01:57.120 implement an integrate generative AI and conversational functionality into search. 0:01:57.200 --> 0:01:59.279 I think we thought that was coming, but the market. 0:01:59.360 --> 0:02:01.160 Moving on that, and Ali Barber up three and a 0:02:01.200 --> 0:02:03.840 half percent. A report out of China overnight that Ali 0:02:03.920 --> 0:02:08.880 Barber itself is working on a chat GPT style generative 0:02:08.919 --> 0:02:12.160 AI tool. Also had really key data in the private markets, 0:02:12.160 --> 0:02:15.280 this coming from Pitchbook and the Venture Capital Association that 0:02:15.400 --> 0:02:18.120 in the first quarter of this year thirty seven billion 0:02:18.160 --> 0:02:21.280 dollars worth of venture back deals. But that's the lowest 0:02:21.400 --> 0:02:25.600 level going back thirteen quarters. I think that's fascinating, Caroline. 0:02:25.639 --> 0:02:29.760 It's backward looking data, right, but you compare where we 0:02:29.800 --> 0:02:32.120 are in the private markets right now with how then 0:02:32.120 --> 0:02:34.600 as that one hundred has started this year the public markets, 0:02:34.639 --> 0:02:36.800 And then we think about the performance of some of 0:02:36.800 --> 0:02:40.239 those funds like Tiger, who are so sort of focused 0:02:40.320 --> 0:02:42.919 right now on the tech sector and it's helping them. Finally, 0:02:43.000 --> 0:02:44.880 I mean, when we're in a ball market for the 0:02:45.000 --> 0:02:47.160 NATZAC one hundred, it's going to help a certain number 0:02:47.160 --> 0:02:49.440 of companies that are committed to the tech space. And 0:02:49.520 --> 0:02:52.440 let's talk about just that, Ed Chase Coleman, Tiger Global 0:02:52.560 --> 0:02:54.919 staging that come back in the first quarter is well, 0:02:54.960 --> 0:02:56.960 there has been this rallyan tech shares. Let's helped the 0:02:57.000 --> 0:03:00.840 firm recoup from last year's pretty mega record for more, 0:03:00.919 --> 0:03:04.920 Let's bring in Hemma Harmer set the scene, because what 0:03:05.120 --> 0:03:07.639 they started off twenty twenty three with half the amount 0:03:07.639 --> 0:03:09.680 of money that they did in twenty twenty one. Yes, 0:03:09.720 --> 0:03:11.839 it's been a very difficult year for them. Last year 0:03:11.880 --> 0:03:15.000 they assets fell a ton They lost fifty six percent 0:03:15.040 --> 0:03:17.160 in their hedge funds. Last year. The long only was 0:03:17.200 --> 0:03:19.760 even worse. So their focus right now for them is 0:03:20.000 --> 0:03:22.920 how do they make back investor losses? And so the 0:03:22.960 --> 0:03:24.880 gain that we've seen in the first quarter up about 0:03:24.919 --> 0:03:27.840 seven percent, you know, not bad. They do have a 0:03:27.880 --> 0:03:30.160 ways to go, but I think investors are happy with 0:03:30.400 --> 0:03:34.040 any recovery and any gain. They will have to make 0:03:34.080 --> 0:03:35.880 more than one hundred percent to gain in order to 0:03:35.920 --> 0:03:39.160 make investors hold again. And Hemma, what's their track record 0:03:39.200 --> 0:03:41.120 on that? Right? Tiger's been in this game a long time. 0:03:41.120 --> 0:03:43.760 They've had bad years before. Will they come back? How 0:03:43.760 --> 0:03:45.520 long is it going to take them? Yeah, So in 0:03:45.560 --> 0:03:47.000 the past, if we look at you know, one of 0:03:47.000 --> 0:03:49.240 their worst years, they were down twenty six percent back 0:03:49.280 --> 0:03:51.440 in two thousand and eight. It took them about three 0:03:51.520 --> 0:03:54.240 years before they were able to make investors hole again. 0:03:54.560 --> 0:03:57.320 And then about in twenty sixteen, they were down again 0:03:57.360 --> 0:03:59.520 and they took them just a year to make investors whole. 0:03:59.600 --> 0:04:01.520 So that's pretty good if you look at, you know, 0:04:01.640 --> 0:04:04.560 being able to rebound, in being able to recoup those losses. 0:04:04.840 --> 0:04:07.120 I think the question is, now, you know, the fifty 0:04:07.160 --> 0:04:09.360 six percent loss from last year is far worse than 0:04:09.440 --> 0:04:12.440 both of those two previous years, So how long will 0:04:12.440 --> 0:04:16.320 it take for them to do that again? And talk 0:04:16.360 --> 0:04:18.599 to us About Chase Coleman himself, I mean, he doesn't 0:04:18.600 --> 0:04:21.760 speak off of publicly, does very little media, but he 0:04:22.000 --> 0:04:23.960 was hosting an event and it seems as though he 0:04:24.000 --> 0:04:26.880 was pretty bullish still on buying big tech right now. Yes, 0:04:27.000 --> 0:04:28.960 So he was speaking at a luncheon for the Boys 0:04:29.000 --> 0:04:32.039 Club in New York and he was talking about he 0:04:32.080 --> 0:04:34.680 was asked about where he sees opportunity right now, and 0:04:34.760 --> 0:04:37.440 he says that tech, you know, has been in something 0:04:37.440 --> 0:04:40.839 of a recession lately, but it looks interesting again that 0:04:41.960 --> 0:04:45.440 companies are using and incorporating more technology into their businesses, 0:04:45.800 --> 0:04:49.240 like Amazon, you know, using chat, GPT, and that he 0:04:49.279 --> 0:04:52.200 thinks he's bullish on fangs and would suggest buying fangs. 0:04:52.760 --> 0:04:56.239 So not unsurprising for a tech focus firms big Meta 0:04:56.320 --> 0:05:00.320 for example Meta, but interesting to see, you know how 0:05:00.360 --> 0:05:02.840 he sees the vote ahead for the space that he 0:05:02.839 --> 0:05:06.440 focuses on. All right, Bloomberg's hem a Palmer, thank you 0:05:06.480 --> 0:05:08.120 with that reporting. We should point out as well that 0:05:08.160 --> 0:05:11.400 Tiger Global declined to comment on the story. Let's turn 0:05:11.440 --> 0:05:14.840 out to investing in private markets the difference of what's 0:05:14.839 --> 0:05:18.400 going on in that space. With Karen Fronski, Fidelity Investments, 0:05:18.440 --> 0:05:21.479 head of Global Private Equity Investment, we brought you the 0:05:21.560 --> 0:05:24.880 data from what the VC landscape looks in the first 0:05:24.880 --> 0:05:27.159 three months three months of this year. You look at 0:05:27.200 --> 0:05:29.640 what's happening with the naz at one hundred and private markets. 0:05:30.360 --> 0:05:32.840 Where's your focus right now? What's your read on the 0:05:32.839 --> 0:05:36.760 macro picture? Well, we actually see the macro picture as 0:05:36.760 --> 0:05:40.800 being something really exciting and opportunistic for Fidelity. I'll echo 0:05:40.880 --> 0:05:42.880 some of what it sounds like Chase Common was saying, 0:05:42.920 --> 0:05:46.240 which is now is a time for investors to really 0:05:46.240 --> 0:05:50.520 be opportunistic and find great investment opportunities. The reality is 0:05:50.640 --> 0:05:54.920 there are fourteen hundred unicorns globally worth about five trillion dollars. 0:05:55.320 --> 0:05:58.960 There's a lot of great businesses out there for investors 0:05:58.960 --> 0:06:02.400 to come in and asked, and unlike twenty twenty one, 0:06:02.440 --> 0:06:06.400 we're starting to see a real rationalization in valuations. Some 0:06:06.480 --> 0:06:09.080 would argue there's still some room to go there, but 0:06:09.200 --> 0:06:11.039 when you look at the peak of the market in 0:06:11.080 --> 0:06:14.600 twenty twenty one, private market valuations were three and a 0:06:14.680 --> 0:06:17.960 half times more expensive than the Nasdaq on average, and 0:06:18.120 --> 0:06:21.520 you saw some companies raised and one hundred times arr 0:06:21.680 --> 0:06:25.360 or even higher than that. And valuations have really rationalized, 0:06:25.400 --> 0:06:28.480 so great businesses, valuations that are making a lot more sense, 0:06:28.800 --> 0:06:32.240 and we see a lot of opportunity. Caroline, I think 0:06:32.240 --> 0:06:33.799 you and I are trying to get a real global 0:06:33.839 --> 0:06:36.760 perspective as well, not just which sectors are sort of 0:06:36.800 --> 0:06:40.520 most interesting right now, but also geographically debates about China, 0:06:40.600 --> 0:06:42.920 the Middle East where there are opportunities right. Yeah, I 0:06:42.960 --> 0:06:45.600 think that's exactly right, and perhaps one that's garnering a 0:06:45.600 --> 0:06:48.920 little bit of what should we say emotion on public 0:06:48.960 --> 0:06:51.680 forums such as Twitter. Karen, I'm interested in your perspective 0:06:51.720 --> 0:06:54.040 of global allocation of money right now. Where are the 0:06:54.120 --> 0:06:57.839 valuations in the best? Yeah, it's a great question. The 0:06:57.920 --> 0:07:01.799 reality is, you know, I think there are great opportunities globally, 0:07:01.800 --> 0:07:04.560 and it doesn't always come down to just valuation. Well, 0:07:04.560 --> 0:07:06.960 a lot of what we're really focused on is what's 0:07:07.000 --> 0:07:10.240 the TAM, what's the total addressable market for a business 0:07:10.720 --> 0:07:13.320 and what type of problem is that business solving and 0:07:13.400 --> 0:07:18.080 do they have a real durable competitive moat that's durable 0:07:18.200 --> 0:07:20.120 over time, And of course we want to make sure 0:07:20.160 --> 0:07:23.560 the valuation is right and appropriate for that business. But 0:07:23.640 --> 0:07:27.720 when we look geographically, we see really large addressable markets 0:07:27.960 --> 0:07:30.480 in regions like India for example, where we've made some 0:07:30.520 --> 0:07:33.920 private investments for the last couple of years. China obviously 0:07:34.640 --> 0:07:38.640 we obviously take into account the geopolitical background of China 0:07:38.720 --> 0:07:41.320 as well, but Europe as well. So we are a 0:07:41.320 --> 0:07:44.680 global investor, both publicly but also privately, and those are 0:07:44.680 --> 0:07:46.840 a couple of the regions that we're most excited about. 0:07:46.840 --> 0:07:50.560 It comes down to the addressable markets that account in China. 0:07:50.680 --> 0:07:53.880 Because you say you take into consideration geopolitics, how is 0:07:53.880 --> 0:07:57.440 it affecting the way in which you allocate. Yeah, I 0:07:57.440 --> 0:08:02.040 mean the reality is, you know risk return, right, and 0:08:02.120 --> 0:08:05.600 we can't always prognosticate what governments are going to do, 0:08:05.760 --> 0:08:09.480 especially governments internationally, and so we just take a little 0:08:09.480 --> 0:08:12.640 bit more of a risk premium when thinking about allocating 0:08:12.880 --> 0:08:14.760 to regions where there might be a little bit more 0:08:14.800 --> 0:08:17.720 geopolitical risk that we can't otherwise account for, and ED 0:08:17.720 --> 0:08:19.520 we're going to have that conversation in depth a little 0:08:19.520 --> 0:08:22.360 bit later with a QVC. But ED, what's also interesting 0:08:22.360 --> 0:08:24.600 in anything we're always talking about is, Okay, we talk 0:08:24.600 --> 0:08:27.400 about countries, what about sectors? And boy do we talk 0:08:27.440 --> 0:08:30.240 about AI a lot right now? Yeah. I think what's 0:08:30.280 --> 0:08:33.440 interesting for me, Karen in particular, is that lots of 0:08:33.440 --> 0:08:37.720 the most exciting companies are private, and they're staying private 0:08:37.760 --> 0:08:40.080 for longer. I think I'm right in saying that you 0:08:40.200 --> 0:08:43.040 invested in SpaceX for the first time back in twenty fifteen. 0:08:43.280 --> 0:08:45.360 That was a long time ago. Now, how do you 0:08:45.360 --> 0:08:50.720 play that field where the most attractive companies are staying private? Well, listen, 0:08:50.960 --> 0:08:54.320 you know the beauty of our model at Fidelity is 0:08:54.400 --> 0:08:57.840 we can invest privately, we can obviously invest publicly, that's 0:08:57.880 --> 0:09:01.240 clearly in our DNA, and we can be opportunistic and 0:09:01.320 --> 0:09:05.040 investing in just the absolute best companies out there. I 0:09:05.080 --> 0:09:07.360 think it's not any secret that we all think the 0:09:07.400 --> 0:09:09.680 ipel market has been has been shut, has been frozen 0:09:09.720 --> 0:09:12.120 shut for over a year at this point in time. 0:09:12.720 --> 0:09:16.560 And the private markets have such a strong depth at 0:09:16.559 --> 0:09:19.880 this point in time, not only in capital but also 0:09:20.040 --> 0:09:23.640 quality of investors. That the beauty is that all of 0:09:23.640 --> 0:09:26.440 these companies can go public when the timing is really 0:09:26.520 --> 0:09:29.320 right and when the stars align, as opposed to being 0:09:29.360 --> 0:09:32.200 forced to go public. The other reason why we do 0:09:32.280 --> 0:09:35.240 this at Fidelity is, as you mentioned, you know about 0:09:36.320 --> 0:09:37.960 the number of public companies that are out there have 0:09:38.040 --> 0:09:41.040 basically halved in the last twenty five years, and there 0:09:41.040 --> 0:09:43.520 are a lot of companies that only exist privately. We 0:09:43.559 --> 0:09:46.480 don't have access to them publicly, and so it's really 0:09:46.520 --> 0:09:50.480 strategically important for us to start investing well ahead of 0:09:50.480 --> 0:09:53.520 their public event. You've had a lot of great exits, 0:09:53.840 --> 0:09:57.920 right I think Facebook, Uber, but less focus on SpaceX. 0:09:59.200 --> 0:10:01.679 How do you stay focused on the opportunity for them 0:10:01.720 --> 0:10:04.319 long term? Do you come back in and do later 0:10:04.440 --> 0:10:07.840 rounds for fear of missing out? Do you worry about 0:10:07.880 --> 0:10:10.160 the partners that are touted to be going into a 0:10:10.240 --> 0:10:13.199 name by SpaceX? Saudi is a name that's been discussed. 0:10:13.280 --> 0:10:15.680 It's a really interesting mindset you have to go into 0:10:15.720 --> 0:10:19.679 in an investment like that. Yeah, you know, listen, SpaceX 0:10:19.679 --> 0:10:23.679 has continued to execute extremely well when we look at 0:10:23.679 --> 0:10:28.480 their Starlink constellation that's up there right now, the focus 0:10:28.520 --> 0:10:32.280 on Starship coming out hopefully soon. It's a company that's 0:10:32.320 --> 0:10:38.920 executed incredibly well. And no, we never invest for fear 0:10:38.960 --> 0:10:41.760 of missing out. We invest when we continue to think 0:10:41.800 --> 0:10:45.439 there's value for our shareholders in investing more. And those 0:10:45.480 --> 0:10:47.440 are the underlying core principles that we try to stick to. 0:10:47.920 --> 0:10:50.079 We know that there are other areas than space that 0:10:50.120 --> 0:10:53.920 you're already interested in data, social, climate, tech, but also 0:10:53.960 --> 0:10:57.360 of course AI machine learning. That's what everyone is seeming 0:10:57.360 --> 0:11:00.400 to be excited about. But where in the apple location 0:11:00.440 --> 0:11:02.480 of AI are you excited about? Have you come to 0:11:02.520 --> 0:11:04.440 grips with so why the money is going to be made? 0:11:05.520 --> 0:11:07.960 It's a great question. We are still doing a lot 0:11:08.000 --> 0:11:11.960 of work on that question specifically. You know, AI has 0:11:12.000 --> 0:11:15.360 obviously been around for decades, but needless to say, open 0:11:15.400 --> 0:11:17.839 AI and chat GPT have brought it to the forefront 0:11:18.200 --> 0:11:21.439 and it certainly captured the imaginations and the excitement of 0:11:21.480 --> 0:11:23.920 all of us. And that's a question that we're spending 0:11:23.920 --> 0:11:26.040 a lot of time and doing a lot of research on, 0:11:26.120 --> 0:11:29.040 meeting with a lot of companies to understand where does 0:11:29.080 --> 0:11:31.560 the value accrete. Is it at the app layer, is 0:11:31.559 --> 0:11:33.880 it at the foundational layer, or is it at the 0:11:33.920 --> 0:11:37.400 infrastructure layer, or is it some combination of the three? 0:11:38.080 --> 0:11:40.920 Right You certainly don't have the final answer there yet. 0:11:40.960 --> 0:11:43.440 I don't think many people do. But it's an area 0:11:43.440 --> 0:11:45.040 where we're spending a lot of time and doing a 0:11:45.080 --> 0:11:48.920 lot of research. Karen Quickly twenty twenty two, really hard 0:11:48.960 --> 0:11:51.560 you thought about Chase Coleman Tiger. Did you have to 0:11:51.640 --> 0:11:56.280 change strategy? In reactions twenty twenty two, You know, listen 0:11:56.280 --> 0:11:59.720 to Our strategy has always had core underpinnings of looking 0:11:59.760 --> 0:12:04.080 for or great companies with a large addressable market that 0:12:04.160 --> 0:12:08.199 are disrupting something out there in the market, phenomenal management teams. 0:12:08.559 --> 0:12:12.880 I think what's changed for everybody is the concept of 0:12:12.920 --> 0:12:17.160 growth at any cost, and not just us. Every investor 0:12:17.240 --> 0:12:21.079 is very, very focused on the ROI on every dollar 0:12:21.200 --> 0:12:25.559 spent profitability or a clear and convincing path to profitability 0:12:25.840 --> 0:12:29.000 and really maximizing margins. But our core underlying principles have 0:12:29.080 --> 0:12:31.480 stayed the same throughout. Great to have some time in 0:12:31.480 --> 0:12:43.240 the kour and thank you Karen Fronsky, Fidelity Investments. After 0:12:43.280 --> 0:12:45.959 announcing some of the largest rounds of layoffs in their history. 0:12:46.040 --> 0:12:49.160 US big tech companies now being reminded how difficult it 0:12:49.240 --> 0:12:52.480 is to reduce headcount in Europe, largely due to labor 0:12:52.520 --> 0:12:55.920 laws in countries like France and Germany. Bloomberg, Zaggy Cantrill 0:12:56.040 --> 0:12:58.680 joins US from Germany. You were part of the reporting 0:12:58.720 --> 0:13:03.319 team on this. What it comes down to is labor protections. Right. 0:13:03.400 --> 0:13:06.560 Why are Amazon and Alphabet in particular finding this so 0:13:06.600 --> 0:13:12.000 hard to enact? Exactly? It's incredibly challenging in several European 0:13:12.000 --> 0:13:15.000 countries to do the sort of sweeping layoffs that we've 0:13:15.000 --> 0:13:17.800 seen in Silicon Valley, where we've seen people have to 0:13:17.800 --> 0:13:22.400 pack up their boxes within weeks or months of these announcements. 0:13:22.679 --> 0:13:25.480 That's not the case in Germany, where I said, we're 0:13:25.520 --> 0:13:28.080 in France, and to look at Germany for a second. 0:13:28.080 --> 0:13:31.120 The reason is essentially there needs to be negotiations with 0:13:31.160 --> 0:13:34.960 works councils, with employee representatives from within the company to 0:13:35.160 --> 0:13:39.480 create a negotiation and create a settlement for the amount 0:13:39.520 --> 0:13:42.160 of employees than leaving the extent of the cuts, and 0:13:42.200 --> 0:13:44.840 also what sort of settlement they're likely to get. And 0:13:44.880 --> 0:13:48.520 in France it's perhaps even more stringent than is in Germany, 0:13:48.640 --> 0:13:52.520 and there we're seeing companies like Google offering voluntary departure 0:13:52.520 --> 0:13:57.160 schemes and they're discussing essentially how to get people to 0:13:57.320 --> 0:14:00.199 leave by essentially buying them out of their jobs to 0:14:00.240 --> 0:14:02.120 get really generous, right, can you talk us through some 0:14:02.160 --> 0:14:06.200 of the changes they make to entire senior managers to leave, Yes, 0:14:06.280 --> 0:14:10.800 So essentially there are these discussions about giving senior managers 0:14:10.960 --> 0:14:15.240 very large packages in order to leave the company, which actually, noticeably, 0:14:15.600 --> 0:14:18.040 while not part of the same layoffs package, is also 0:14:18.080 --> 0:14:21.479 something we've heard at Meta with this idea of flattening 0:14:21.480 --> 0:14:24.840 their workforce, and that's something that Matter is proposing across 0:14:24.880 --> 0:14:28.160 the board. But what we're seeing in France is also 0:14:28.240 --> 0:14:30.600 based on an issue in France where it's not so 0:14:30.640 --> 0:14:34.760 easy to just let people go without cause, without them 0:14:34.800 --> 0:14:37.040 doing something that means that they should be fired from 0:14:37.080 --> 0:14:39.800 their job. It's not so simple just to let people 0:14:39.840 --> 0:14:43.560 go from these roles, and so these layols will come 0:14:43.600 --> 0:14:46.080 with a huge price tag for these companies. We've heard 0:14:46.760 --> 0:14:49.960 Alphabet already indicate that these layoffs could cost up to 0:14:50.080 --> 0:14:54.400 two point three billion dollars globally. And while they've said 0:14:54.440 --> 0:14:57.640 that in the US, the Brunt of those costs will 0:14:57.640 --> 0:15:00.280 be felt in Q one. And of course let's remember 0:15:00.280 --> 0:15:03.120 this is all about efficiency and being able to tighten 0:15:03.160 --> 0:15:06.080 the belt. While those class have felt in Q one 0:15:06.200 --> 0:15:08.600 this year in the US, that's not the case with 0:15:08.680 --> 0:15:13.840 places like France and Germany where these negotiations going Aggie. 0:15:13.840 --> 0:15:18.080 Amazon did not comment on the story. Google did and 0:15:18.160 --> 0:15:22.480 they explain to us that in some markets Romania, for example, Greece, 0:15:22.800 --> 0:15:24.800 they won't for now be cutting jobs. This is what 0:15:24.840 --> 0:15:26.760 they had to say. We're showing on the screen right now, 0:15:27.640 --> 0:15:30.200 old school tech structure is what caught my eye. Right 0:15:30.440 --> 0:15:36.160 you have compromises around stock compensation and also bonuses. There 0:15:36.240 --> 0:15:39.320 is some clever workarounds that Google in particular and Amazon 0:15:39.320 --> 0:15:42.680 are trying to do. What are they yes, So essentially 0:15:42.760 --> 0:15:48.040 these companies are looking at finding different ways in which 0:15:48.120 --> 0:15:51.720 to provide for instance, stock options is a good example 0:15:52.240 --> 0:15:56.120 to the departing workers. But also when you look at 0:15:56.160 --> 0:15:59.760 the broader structure around hiring in Europe, this is also 0:15:59.840 --> 0:16:02.880 a conversation around going forward, what it will look like 0:16:03.400 --> 0:16:07.360 to bring more people on board in these companies in 0:16:07.880 --> 0:16:10.440 these regions. And so, as you say, in some in 0:16:10.440 --> 0:16:12.960 some markets they're not they're not laying people off at all. 0:16:13.240 --> 0:16:15.440 That may also be a strategic point that the offices 0:16:15.440 --> 0:16:17.920 aren't actually that big in some of those markets. It's 0:16:17.960 --> 0:16:21.720 also about being able to have enough people on hand 0:16:22.320 --> 0:16:25.400 for dealing with the huge amount of content that is 0:16:25.880 --> 0:16:30.200 in various different languages around Europe. So while going forward, 0:16:30.240 --> 0:16:33.240 there are these question marks over the costs that this 0:16:33.840 --> 0:16:37.000 could bear for these companies. I don't think it really 0:16:37.040 --> 0:16:38.960 means that they're going to be pulling out of these 0:16:39.000 --> 0:16:42.840 markets or when it comes to hiring, they're They're likely 0:16:42.920 --> 0:16:47.320 to still be engaging with these workforces because countries like 0:16:47.560 --> 0:16:52.720 France and Germany are hugely important for Google for instance, 0:16:53.160 --> 0:16:56.040 Thanking Cantra, thanks so much staying late with us. We 0:16:56.080 --> 0:16:59.400 appreciate it. Meanwhile, let's turn to a stop. We're watching 0:16:59.520 --> 0:17:02.240 Sam heading for as low as profit, which there's a 0:17:02.240 --> 0:17:04.800 global financial crisis, if not longer, it was due to 0:17:04.800 --> 0:17:07.760 a sharp slowdown in Technomold. Of course, it's triggering losses 0:17:07.760 --> 0:17:11.560 in its semiconductor division. Now, South Korean chipmaker reporting preliminary 0:17:11.800 --> 0:17:15.360 results for the March quarter tomorrow. It's expected to say 0:17:15.400 --> 0:17:19.160 operating profit pronominated some ninety percent. Will continue to follow 0:17:19.200 --> 0:17:22.159 it from new York from San Francisco. This is Willimberger. 0:17:35.640 --> 0:17:38.159 All right, time for talking tech. First up Binance. In 0:17:38.160 --> 0:17:42.680 the CFTC lawsuit against Binance over sham compliance with US 0:17:42.720 --> 0:17:46.920 Derivatives regulations, three unidentified training firms have been cited as 0:17:47.000 --> 0:17:50.200 VIP clients. They've now been named Jane Street Group, Tower 0:17:50.280 --> 0:17:53.840 Research Capital, and Raddick's Trading. That's according to sources. The 0:17:54.000 --> 0:17:57.560 three US POMP firms were cited anonymously by the CFTC 0:17:57.760 --> 0:18:01.280 in its lawsuit is examples of how US clients accessed 0:18:01.520 --> 0:18:06.480 the platform. An elicit online marketplace where users sold stolen passwords, 0:18:06.520 --> 0:18:09.920 bank account information, and other sensitive data was shut down 0:18:09.960 --> 0:18:13.399 by the US, UK, Dutch and other law enforcement agencies 0:18:13.440 --> 0:18:17.040 this week. Authorities seize the site, known as Genesis Market 0:18:17.080 --> 0:18:20.720 as part of an effort dubbed Operation Cookie Monster. The 0:18:20.760 --> 0:18:23.159 site began in twenty eighteen and has offered access to 0:18:23.240 --> 0:18:26.879 data stolen from more than one point five million compromised computers, 0:18:27.119 --> 0:18:30.600 accounting for more than eighty million credentials that could be 0:18:30.680 --> 0:18:33.720 used to access accounts. That's according to the Department of Justice. 0:18:33.800 --> 0:18:37.200 Law enforcement arrested one hundred and nineteen people in connection 0:18:37.200 --> 0:18:40.040 with the site. That according to the European Police Agency 0:18:40.080 --> 0:18:43.280 EUROPOLE and finally, converting the world to entirely clean energy 0:18:43.440 --> 0:18:48.080 will require ten trillion dollars worth of investment, but continuing 0:18:48.080 --> 0:18:51.359 to rely on fossil fuels were cost about fourteen trillion 0:18:51.600 --> 0:18:54.879 that according to Elon Musk, a massive build out of 0:18:54.920 --> 0:18:58.199 solar panel factories and metal refineries are required over the 0:18:58.240 --> 0:19:01.880 next twenty years to deliver renewable power generation and electricity 0:19:01.920 --> 0:19:04.800 storage capacity, which will then be needed to power the 0:19:04.800 --> 0:19:08.280 global economy entirely with carbon free energy, Tessa said. And 0:19:08.320 --> 0:19:11.560 it's master Plan Part three, which was published today. The 0:19:11.600 --> 0:19:15.080 white paper fleshes out details a mosque's vision for a 0:19:15.119 --> 0:19:18.080 world without fossil Field's first outlined, of course, during that 0:19:18.119 --> 0:19:23.080 investor day last month. Next stay with EVS because STILLANTIS 0:19:23.080 --> 0:19:25.919 plans to manufacture an all electric version of the popular 0:19:26.000 --> 0:19:29.240 Ram truck and a factory of course in the United States. 0:19:29.280 --> 0:19:32.440 We understand all according to its CEO and most David Welch, 0:19:32.520 --> 0:19:35.720 and please say it's here in New York. But of 0:19:35.760 --> 0:19:37.399 course the auto show that's going on, some of the 0:19:37.440 --> 0:19:40.680 summits and talk to us about the Ram. The focus 0:19:40.720 --> 0:19:43.199 basically on making sure that they can access some of 0:19:43.240 --> 0:19:47.480 the Inflation Reduction Act offers to the consumer. Yeah, thanks Caroline. 0:19:47.520 --> 0:19:49.680 So just to get in the game with the inflation 0:19:49.680 --> 0:19:51.760 reduction egg, you've got to build the vehicle in the 0:19:51.880 --> 0:19:54.840 United States and then be on net. You've got to 0:19:54.840 --> 0:19:57.639 satisfy other requirements where the batteries are built, where the 0:19:57.840 --> 0:20:00.720 ingredients to the batteries are mined in por to get 0:20:00.760 --> 0:20:03.040 the full seventy five hundred dollars. But just to get 0:20:03.040 --> 0:20:05.080 in the room, you have to build the United States. 0:20:05.119 --> 0:20:07.840 So in that sense, I think the efflation Reduction action 0:20:07.960 --> 0:20:10.000 was a big incentive. It was a little bit up 0:20:10.000 --> 0:20:12.119 in the air in the sense that Carlos Tavarus, who 0:20:12.160 --> 0:20:14.560 told us about this at the auto show yesterday, has 0:20:14.560 --> 0:20:17.280 complained greatly about the cost of building evs, the lack 0:20:17.320 --> 0:20:19.800 of profitability. And we thought he has a pickup truck 0:20:19.800 --> 0:20:23.080 buyant in Mexico, he could possibly build the vehicle down 0:20:23.080 --> 0:20:25.880 there and save on wages and that sort of thing. 0:20:26.080 --> 0:20:28.359 But he says it's coming to the US, which plant 0:20:28.400 --> 0:20:31.440 exactly TVD. He said, in the next week or two, 0:20:31.720 --> 0:20:35.639 we may know that, Hey, David, in US, Let's be honest, 0:20:35.760 --> 0:20:39.400 the Lantis is playing catch up when it comes to electrification, right, 0:20:40.400 --> 0:20:43.680 that's right. The companies that have really made a big 0:20:43.720 --> 0:20:47.320 commitment here, Volkswagen, General Motors obviously test us the leader. 0:20:47.320 --> 0:20:50.160 Everybody's trying to catch them. Shantis has been a little 0:20:50.200 --> 0:20:53.680 bit more conservative with this ss Toyota. They see consumers 0:20:53.680 --> 0:20:56.520 still buying internal combustion vehicles and huge numbers. They don't 0:20:56.520 --> 0:20:59.080 see profits and electric vehicles yet, and they're thinking they 0:20:59.080 --> 0:21:02.639 can be a fast follow Just remind us of the 0:21:02.680 --> 0:21:05.120 scope of who the competition is. I'm thinking forward, I'm 0:21:05.160 --> 0:21:08.159 thinking what even Rivian to an extent for it's a 0:21:08.200 --> 0:21:10.439 big player. Obviously, they've got the f one, fifty, Lightning 0:21:10.440 --> 0:21:12.720 and the Marquis out there. Rivian and some of the 0:21:12.760 --> 0:21:17.240 startups are they're very legitimate players. However, their volumes right 0:21:17.280 --> 0:21:19.320 now are so small. I mean, Rivian's looking to make 0:21:19.320 --> 0:21:22.200 fifty thousand vehicles, you know. General Motors is saying they're 0:21:22.200 --> 0:21:24.600 going to sell fifty thousand just in the first half 0:21:24.600 --> 0:21:27.040 of this year, and they're just getting started one hundred 0:21:27.040 --> 0:21:30.399 thousand next year. Tessa's already pushing a million globally. So 0:21:30.560 --> 0:21:33.800 some of these startups, they have good technology and desirable vehicles, 0:21:33.840 --> 0:21:37.919 but getting to critical mass pretty tough for them all, 0:21:38.040 --> 0:21:48.439 I believe. Thanks David Welcha, Detroit, BRT. Thank you. Welcome 0:21:48.440 --> 0:21:50.199