'Bloomberg Technology' Full Show (10/06/2022)
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE, THIS IS BLOOMBERG TECHNOLOGY WITH EMILY CHANG. ♪ EMILY: I AM EMILY CHANG. THIS IS BLOOMBERG TECHNOLOGY. COMING UP, A NEW COURT FILING SAYS MUSK'S BUYOUT DEAL IS EXPECTED TO CLOSE OCTOBER 28. BUT, NOT A DONE DEAL.
WE WILL TELL YOU WHAT THE HOLDUP IS NOW. PLUS, GOOGLE SHOWS OFF NEW GADGETS INCLUDING A NEW PHONE AND I WATCHED. EVEN TEASING A NEW TABLET. HOW DOES IT STACK UP TO APPLE? WE TAKE IT TO -- NEXT. A CAR THAT DRIVES ITSELF WAS SUPPOSED TO BE THE FUTURE. THE REALITY FOR SELF DRIVING CARS SEEMS TO BE GETTING FURTHER AWAY. WILL THEY EXIST IN OUR LIFETIME? IS THIS INDUSTRY A $100 BILLION BUST? WE DISCUSSED.
FIRST, A LOOK AT THE MARKETS. TECH STILL FEELING PAIN. LET'S BRING IN ED LUDLOW WHO HAS BREAKING HEADLINES. ED: AMD GIVING US. THE RESULTS FOR THE THIRD QUARTER WELL BELOW EXPECTATIONS. $1 BILLION BELOW PROJECTIONS.
TALK ABOUT 3%. THIS IS ALL ABOUT THE SLOWDOWN IN PC'S. LACK OF DEMAND FOR CONSUMER ELECTRONICS. YOU WONDER HOW BIG OR RIPPLE THIS WILL HAVE IN THE MARKET. STAY TUNED FOR MORE. AS FOR A DAY THAT WAS THURSDAY,
THERE'S A LOT OF ANXIETY IN THE MARKET. MAKES DATA THROUGHOUT THE WEEK. A NUMBER OF SPEAKERS REITERATING THE FED WILL STAY THE COURSE IN THEIR FIGHT AGAINST INFLATION. RAISING THE PROSPECT THAT RATES WILL CONTINUE TO CLIMB HIGHER. HIGHER RATES DISCOUNT TO THE
PRESENT VALUE OF FUTURE PROFIT WHEN IT COMES TO THE TECHNOLOGY SECTOR. THE NASDAQ 100 DOWN FOR -- 8 -- RELATIVE TO THE BROADER MARKET. TECH ACTUALLY FARED BETTER THURSDAY. YIELDS CONTINUE TO PUSH IRAN BITCOIN HAS KIND OF TRADED SIDEWAYS. THE BIG BREAKING NEWS HEADLINES OF THE DAY ARE ALL ABOUT TWITTER. THIS TIT FOR TAT BACK AND FORTH. WHAT IS INTERESTING IS SINCE THAT JUMP IN THE STOCKS WE GOT TUESDAY WHEN ELON MUSK SENT THE LETTER TO TWITTER GOING BACK TO THE ORIGINAL OFFER, THE STOCK HAS TRICKLED DOWN.
IT WENT DOWN FOR TWO STRAIGHT DAYS, BELOW $50 A SHARE. IF YOU ARE ONE OF THOSE PEOPLE THAT WATCHES THE SPREAD BETWEEN THE CURRENT PRICE AND THE OFFER PRICE AND YOU SEE IT TRICKLING DOWN, IS THAT A SIGN THAT WALL STREET IS STARTING TO HAVE QUESTIONS ABOUT THE DIRECTION OF WHERE THIS DEAL GOES? EMILY: THANK YOU. WE WILL BE BACK WITH YOU LATER IN THE SHOW. LET'S GET INTO THIS BACK AND FORTH. THE DEAL COULD POTENTIALLY CLOSE AT THE END OF THE MONTH BUT TWITTER IS SAYING NOT NECESSARILY.
KURT WAGNER HAS BEEN GOING BACK AND FORTH NOW FOR MONTHS. WHAT IS THE HOLDUP? WHY CAN'T THEY JUST SAY, LET'S DO IT? >> THERE IS A HUGE DISTRESSED FACTOR. YOU HAVE TO KEEP THAT IN MIND. TWO DAYS AGO, ELON SAID, LET'S
DO THE ORIGINAL DEAL AT THE ORIGINAL PRICE AND TWITTER DID NOT JUMP ON IT IMMEDIATELY, WHICH TELLS YOU SOMETHING. IT SEEMS LIKE THE TWO HAD BEEN MEETING WHERE THEY THOUGHT THEY WERE GOING TO AN APRIL AND TODAY WE LEARNED THERE HAS BEEN A HANG UP AROUND SOME OF THE LANGUAGE AND WHAT ELON ULTIMATELY SAID. THAT THERE WOULD BE A DEBT CONTINGENCY. THAT WAS NOT IN THE ORIGINAL AGREEMENT. NOW HE IS SAYING I HAVE THE DEBT THERE AND TWITTER IS SAYING, SHOW US. WE ARE NOT GOING TO FIND ANYTHING UNTIL WE HAVE A LEGAL DOCUMENT. IN THE LAST HOUR OR SO, THE
TEAM HAS HEADACHE, WE WANT TO STAY. THE TWITTER TEAM JUST RESPONDED MAYBE 10 OR 15 MINUTES AGO TO SAY, WE DON'T WANT TO DO THAT. AND NOW TO THE JUDGE AS TO WHETHER OR NOT THEY PUT THIS THING ON PAUSE OR CONTINUE.
I'M WHAT IS THE LIKELIHOOD THE DEBT CONTINGENCY WOULD ACTUALLY BECOME AN ISSUE? >> QUICK QUESTION. AS FAR AS WE CAN -- GREAT QUESTION. A LOT OF THE COMMITMENTS ELON GOT FROM THE BANKS BACK IN APRIL AND MAY, THOSE ARE STILL GOOD. ELON HAS BEEN SAYING, TWITTER IS ESSENTIALLY DRAGGING THEIR FEET. THERE IS NO REASON THIS DEBT IS
NOT GOING TO COME THROUGH. BUT IF YOU ARE TWITTER, ALL YOU HAVE SEEN IS THIS GUY PLAY GAMES, CHANGE HIS MIND AND FLIP-FLOPPED. THAT IS WHERE I THINK THE TRUST THING COMES IN.
EVEN IF THE DEBT IS THERE, CLEARLY TWITTER IS VERY NERVOUS, OR UNCOMFORTABLE WITH ACCEPTING THAT AND MOVING FORWARD. EMILY: IT ALSO CAME OUT THAT MUSK TRIED TO NEGOTIATE A LOWER PRICE FOR THE DEAL. THIS WAS, AS I UNDERSTAND, WEEKS AGO. TWITTER SAID NO. BUT HE ACTUALLY DID COME BACK TO THEM EARLIER THAN WE THOUGHT AND SAID HEY, MAYBE I ACTUALLY WANT TO DO THIS.
>> HIS LAWYER ACTUALLY ISSUED A PUBLIC STATEMENT TODAY THAT SAID THAT THE TWO SIDES HAD TALKED ABOUT LOWERING THAT DEAL PRICE, WHICH IS $54.20 PER SHARE, AND THAT TWITTER HAD OFFERED A SLIGHTLY LOWER DEAL. HE SAID THEY CUT BILLIONS OF DOLLARS OFF THE PRICE. ELON ULTIMATELY SAID NO BECAUSE
THERE WERE OTHER STIPULATIONS. WE ARE KIND OF AT THAT STAGE WHERE BOTH SIDES ARE THROWING EVERYTHING THEY CAN AT ONE ANOTHER IN PUBLIC. IT IS A LITTLE BIT TRYING TO FIGURE OUT HOW THAT NEGOTIATION MAY HAVE PLAYED OUT.
BUT AGAIN, ON THE RECORD FROM ELON MUSK'S LAWYER THAT HE SAID NO BECAUSE HE DIDN'T LIKE STIPULATIONS. EMILY: IT SEEMS TO BE AN HOUR-BY-HOUR, TWEET BY TWEET SITUATION. KURT WAGNER, THANK YOU BY CONTINUED -- FOR CONTINUING TO FOLLOW IT ALL FOR US. PELOTON IS LAYING OFF A
SIGNIFICANT NUMBER OF EMPLOYEES. CEO BARRY MCCARTHY TOLD BLOOMBERG IT IS PART OF -- ROUGHLY 500 WORKERS BEING LET GO NOW, 12% OF THE WORKFORCE. COMING UP, META'S MARKET CAP FALL. ARE WE SEEING A CHANGING OF THE GUARD? REGULATIONS POISED TO MAKE BIG TECH A LITTLE HARDER TO DO. WE TALK ABOUT IT ALL WITH FACEBOOK FORMER CHIEF PRIVACY OFFICER. THIS IS BLOOMBERG. ♪ EMILY: IN THE SPAN OF A YEAR META META,'S MARKET CAP HAS PLUNGED. SHARES OF THE SOCIAL MEDIA
GIANT COLLAPSING SOME 60% OVER THE LAST YEAR, MEANING THE FACEBOOK PARENT NOW ACCOUNTS FOR LESS THAN 1% OF THE S&P 500. THE LOWEST SINCE 2015. WHAT DOES IT SIGNAL? LET'S ASK OUR NEXT GUEST CHRIS KELLY, FACEBOOK'S FORMER CHIEF PRIVACY OFFICER AT FIRST GENERAL AND HEAD OF GLOBAL PUBLIC POLICY. THANK YOU SO MUCH FOR JOINING US.
OF COURSE MARKET CAP ISN'T EVERYTHING, BUT IT IS ASTOUNDING TO LOOK AT THOSE NUMBERS. DO YOU THINK WE ARE SEEING A CHANGING OF THE GUARD HAPPEN BEFORE OUR VERY EYES WHEREBY META'S INFLUENCE AND POWER WILL BE SIGNIFICANTLY DIMINISHED? >> THERE'S OBVIOUSLY A LOT OF MARKET CONCERN ABOUT THE DIRECTION THE COMPANY IS KILLING. THE MOVE TO THE METAVERSE, THE NAME CHANGE, ALL OF THESE THINGS THAT HAVE GONE INTO WHAT THE STREET PATHS ASSESSMENT OF THE BUSINESS PROSPECTS OF THE COMPANY ARE. THAT HAS WEIGHT ON THE STOCK. OVERALL, THE COMPANY IS WELL-POSITIONED IN GENERAL BUT NEEDS TO FIGURE OUT WHAT IT IS GOING TO EMPHASIZE IN TERMS OF HOW THEY ARE GOING TO CONTINUE TO MAKE GREAT PROFITS AND HOW TO LEAD THIS TRANSITION INTO THE METAVERSE, WHICH IS ONE OF THE THINGS THEY ARTICULATED AS THE MAIN GOAL OF THE COMPANY.
IN THE MEANTIME, THEY HAVE -- BUSINESSES THAT OPERATE EXTRAORDINARILY WELL AND THEY ARE GOING TO BE THE MAKE -- NEED TO MAKE THE CASE MORE FOR GROWTH PROSPECTS AND ULTIMATELY THAT SHOULD RESULT IN RECOVERY OF MARKET CAP OVER TIME BUT THIS IS THE WAY THE MARKET -- COMPANIES THESE DAYS. IT IS ALWAYS A CHALLENGE. EMILY: YOU'VE GOT THE SUPREME COURT LOOKING AT SECTION 230. HOW BIG A BLOW COULD THAT BE FOR META? >> SECTION 230 HAS HAD A GREAT DEAL OF POWER IN PROTECTING THE REASONABLE BUSINESS DECISIONS OF ALL COMPANIES.
NOT JUST FACEBOOK. THE THREATS TO THAT ARE VERY REAL RIGHT NOW. THE UPHOLDING OF THE TEXAS LAW BY THE FIFTH CIRCUIT, THE UPHOLDING OF THE FLORIDA LAW IN THE 11TH CIRCUIT, THERE'S JUST A BUNCH OF WACKY STUFF FROM TRADITIONAL FIRST AMENDMENT JURISPRUDENCE GOING ON RIGHT NOW. OF COURSE BECAUSE OF THE WAY THEY HAVE BEEN PACKED. FROM THERE, THE COMPANY HAS TO BE VERY FOCUSED ON THIS. I THINK THERE HAS BEEN A LOT OF GOOD COMMENTARY THAT SAYS THE COMPANY MIGHT END UP ENGAGING IN MORE TAKEDOWNS OF IMPROPER BEHAVIOR, EVEN MORE, IF THERE WERE TO BE SOME SORT OF REPEAL OF SECTION 230, OR LIMITATION OF IT BY THE INTERPRETATION OF THESE STATUTES WHICH CLEARLY CONFLICT WITH SECTION 230 AND THEIR FIRST AMENDMENT IN A LOT OF CASES TOO.
IT IS AN ON -- AN ONGOING WORRY. BUT FACEBOOK, META AND GOOGLE, ALL SORTS OF DIFFERENT COMPANIES THAT ARE OFFERING MEDIA AND CONTENT, USER GENERATED CONTENT, HAVE BEEN ADAPTING THEIR POLICIES TO GET TO SOME SORT OF STASIS, WHICH IS GAY RIGHT NOW -- THEY MAY HAVE TO CHANGE IT RADICALLY. EMILY: YOU'VE GOT FEDERAL REGULATIONS THAT COULD POTENTIALLY COME WITH THIS KLOBUCHAR-GRASSLEY LAW. THERE IS MARKET CAP PROVISIONS THAT FACEBOOK WOULDN'T QUALIFY FOR. IN TERMS OF MARKET SIZE, IT IS TOO SMALL. YOU'VE GOT FTC SCRUTINIZING FACEBOOK FROM ANOTHER DIRECTION. SOME WOULD SAY FACEBOOK IS
GETTING AN UNDUE AMOUNT OF SCRUTINY FOR THE SIZE, AT LEAST IF YOU LOOK AT THE MARKET SIZE OF THE COMPANY TODAY. >> THE IDEA THAT FACEBOOK IS A MONOPOLIST EXERCISING UNJUST, UNALLOWABLE MONOPOLY POWER TO EITHER MAINTAIN A MONOPOLY OR GAIN A MONOPOLY HAS ALWAYS BEEN A FAR-FETCHED VISION. A BUNCH OF PEOPLE WHO JUST DIDN'T LIKE SOME DECISIONS THE COMPANY WAS MAKING.
THE -- TO PROTECT COMPETITION, NOT COMPETITORS. FACEBOOK HAS HAD SOME COMPETITORS COMPLAINING OVER TIME, SOME SMALLER COMPANIES THAT WOULD LIKE TO GET INTO THE FIELD. BUT TO THE IDEA THAT THEY ARE EXERCISING THIS BOTTLENECK CONTROL OF THE HISTORIC WORRY OF -- HAS ALWAYS BEEN DIFFICULT. WHICH IS WHY -- DISMISSED THE SUIT WITH THE FTC'S PLEADINGS CONCLUSORY ON THAT FRONT. HE CAME BACK AND LET THE
LAWSUIT PURSUED WITH REGARD TO THE FEDERAL GOVERNMENT. THE STATE'S LAWSUIT WAS DISMISSED. THEY ARE ON APPEAL RIGHT NOW, BUT I DO NOT THINK IT WILL BE SUCCESSFUL. IF YOU LOOK AT THE THINGS THEY WANTED TO GO AFTER FACEBOOK FOR, THE ACQUISITION OF INSTAGRAM AND WHATSAPP, THERE IS A READ THAT IS MORE DEFENSIVE OF BIG PLAYERS IN THE INDUSTRY LIKE APPLE AND GOOGLE WHO CONTROL MOBILE OPERATING SYSTEMS. SO, IT'S ONE OF THOSE
THINGS WHERE FROM A TRADITIONAL PERSPECTIVE IT WAS ALWAYS A FAR-FETCHED CASE. IT IS PROCEEDING NOW, BUT AFTER SIGNIFICANT HAND SLAPPING BY A FAIRLY GOOD AND PRINCIPLED TRADITIONAL JUDGE IN D.C. EMILY: FACEBOOK STILL HAS A MASSIVE IMPACT. WE WERE JUST SPEAKING WITH THE NOW FAMOUS FACEBOOK WHISTLEBLOWER. SHE EXPRESSED HER CONCERN THAT ESPECIALLY WITH SHERYL SANDBERG LEAVING THAT MARK ZUCKERBERG STILL ONLY HAS MARK ZUCKERBERG TO HOLD HIM ACCOUNTABLE. TAKE A LISTEN TO WHAT SHE HAD TO SAY.
>> MARK HAS STRANDED HIMSELF WITH PEOPLE WHO TELL HIM THE SAME STORIES OVER AND OVER. FACEBOOK DOESN'T HAVE RESPONSIBILITY. ALL OF THESE THINGS WE ARE COMPLAINING ABOUT HAVE ALWAYS BEEN PRESENT. WE DON'T PLAY ANY ROLE IN THIS, WE HAVE NO POWER. EMILY: WHAT DO YOU THINK? >> I THINK THERE IS A DEGREE TO WHICH FACEBOOK, AS A GATHERER OF CULTURAL EXPRESSION, IS MERELY REFLECTING WHAT IS GOING ON IN REALITY. BUT THE IDEA THAT IT SHAPES IT,
INSTEAD OF SOMETHING THE COMPANY HAS EMBRACED IN ITS RESEARCH INTERNALLY, AS A LOT OF DOCUMENTS HAVE SHOWN, I DO THINK THE COMPANY SHOULD BE MORE TRANSPARENT ABOUT THAT RESEARCH AND THAT THEY SHOULD BE ENGAGED IN A DIALOGUE OF SAYING LOOK, WE UNDERSTAND THAT THERE ARE CHALLENGES TO THE CHANGE THAT SOCIAL MEDIA PRESENTS TO THE WAY THAT PEOPLE TRADITIONALLY EXPERIENCE MEDIA. AND WE ARE TRYING TO LEAD THEM. AND MOVING INTO THE METAVERSE, WE WANT TO MAKE SURE THAT SAFETY AND HEALTH AS PEOPLE EXPERIENCE THESE PLATFORMS, IS PART OF THE MISSION. DOING THAT IN A GOOD WAY AS PART OF THE MISSION. I HAVE SEEN SOME PRETTY GOOD ACTION ON THAT FROM FROM THE COMPANY AS THE METAVERSE PIVOT HAS CONTINUED TO HAPPEN. I THINK THE FACT THAT A LOT OF THESE DOCUMENTS HAVE COME OUT AND REVEALED INTERNAL RESEARCH IN THE COMPANY HAS BEEN MOSTLY A CLEANSING OPPORTUNITY FOR THE COMPANY TO TALK ABOUT THESE THINGS MORE OPENLY.
FRANCIS' POINT SEEMS TO BE THE COMPANY SHOULDN'T BE HIDING THESE AND I THINK THAT IS RIGHT. EMILY: I HAVE TO ASK ABOUT ELON MUSK AND TWITTER. I AM CURIOUS WHAT YOU THINK THE RISKS ARE.
DOES TWITTER UNDER ELON MUSK A TRACK -- ATTRACT MORE FACEBOOK LIKE PROBLEMS? BECAUSE IT IS RUN BY A VERY PUBLIC BILLIONAIRE? WHAT ARE YOU WATCHING, IF INDEED , DESPITE HIS SUCCESS, HE ENDS UP TAKING OVER THIS SOCIAL MEDIA COMPANY? >> HIS COMMENTARY ABOUT HOW SIMPLE THIS COULD BE AND YOU JUST REINSTATE SOME OF THESE FIGURES AND JUST ALLOW -- WE WANT TO GO TO THE LIMITS OF FREE SPEECH AND LAW IN AMERICA, WE ARE GOING TO TRY TO STEP BACK, SEE MALAAK OR LIKE PEOPLE LIKE FRANCIS ARE ACCUSING MARK ZUCKERBERG OF AND WHAT HAS ACTUALLY HAPPENED TO FACEBOOK. THERE IS A REAL DANGER. THE COMMENTARY ON THIS HAS BEEN SIMPLISTIC. AND ILL-INFORMED, IN MOST CASES. ALMOST AS ILL-INFORMED AS SOME OF THE STUFF YOU PUT OUT RECENTLY ABOUT UKRAINE.
A LOT OF THESE COMMENTARIES ARE AREAS WHERE HE JUST DOESN'T HAVE ANY EXPERTISE. LOOK, I DRIVE A TESLA, I WAS AN INVESTOR IN SPACE X, I AM MOSTLY A BELIEVER IN ELON MUSK. BUT THE WAY HE HAS ROUNDLY DISMISSED YEARS OF RESEARCH AND THOUGHTFULNESS IN TWITTER'S CONTENT POLICIES IN TERMS OF WAYS TO APPROACH DIFFICULT MATTERS, DOES NOT BODE WELL. IF IT ENDS UP DESCENDING INTO 4C HAN, IT WILL NEVER BE AS VALUABLE AS HE NEEDS IT TO BE, THEREFORE HE HAS TO SMARTEN UP. EMILY: THAT IS QUITE THE COMPARISON THERE. CERTAINLY MUCH REMAINS TO BE
SEEN. CHRIS KELLY, GOOD TO HAVE YOU BACK ON THE SHOW. COMING UP, THE MYTH OF THE DRIVERLESS CAR. WHY A FUTURE WHERE YOU CAN RELAX BEHIND THE WHEEL IS STILL PRETTY FAR OUT. THIS IS BLOOMBERG. EMILY: INVESTORS HAVE BET 100 BILLION DOLLARS ON THE SELF-DRIVING CAR INDUSTRY.
BUT, HOW CLOSE ARE WE REALLY? DRIVERLESS CAR ENGINEER AND PRONTO CEO ANTHONY LEWANDOWSKI SAYS THE FUTURE IS YEARS, IF NOT DECADES AWAY. HE JOINS US NOW FOR MORE DETAILS. IF THAT SOUNDS FAMILIAR, ANTHONY, I FEEL LIKE WE HAVE TO SAY AT THE START BUT -- WAS INDICTED FOR THE CHARGES OF THEFT AND STEALING TRADE SECRETS FROM GOOGLE. HE SERVED A FEW MONTHS IN PRISON. WHAT IS HE UP TO NOW? >> HE IS A VERY WELL-KNOWN FIGURE IN THIS FIELD.
HE IS EXTREMELY CONTROVERSIAL. HE IS KIND OF THE GUY THAT KICKED THE WHOLE THING OFF. HE CREATED THE PROTOTYPE THAT BECAME GOOGLE'S DRIVERLESS CAR. AND THEN HE WENT TO UBER AND WAS IN THE MIDDLE OF A MESSY BUT -- MESSY LAWSUIT THAT ENDED WITH MONEY BEING PAID AND ALSO THIS INDICTMENT.
AND THEN HE WAS PARDONED BY FORMER PRESIDENT TRUMP. HE IS BACK AND HAS TURNED CRITIC, WHICH IS INTERESTING BECAUSE HE WAS PROBABLY ONE OF THE MOST OUTSPOKEN BOOSTERS IN THE INDUSTRY. PARTICULARLY WANTING PEOPLE TO PUSH TOWARD ROBO TAXIS. WHAT HE IS SAYING NOW BASICALLY IS THAT WHEN YOU LOOK AT THE PROGRESS OF THE INDUSTRY, IF YOU LOOK AT THESE SMALLER COMPANIES THAT HAVE RAISED MONEY, IT IS NOT A WHOLE LOT. IT IS A HANDFUL OF CARS AND A HANDFUL OF CITIES.
THEY ARE STILL EXTREMELY RESTRICTED AND YOU ARE STILL GETTING ALL OF THESE VIDEOS ON YOUTUBE AND SOCIAL MEDIA OF DRIVERLESS CAR IS BEHAVING BADLY. AT SO, THERE ARE A LOT OF REASONS TO HAVE SKEPTICISM ABOUT THE INDUSTRY. YET ANOTHER ONE IS THIS PIONEER COME OF BOOSTER TURNING CRITIC. EMILY:
THE HEADLINE OF YOUR STORY IS, "SELF DRIVING CARS ARE BEGINNING TO LOOK LIKE A $100 MILLION BUST." GETTING CONFUSED BY THINGS AS SIMPLE AS TRAFFIC CONES. WHAT IS THE REAL OUTLOOK? WHEN ARE THEY GOING TO BE HITTING THE ROAD? ARE THEY EVER? >> IT HAS BEEN TWO YEARS OUT FOR THE LAST 10 YEARS. EVEN GOING ALL THE WAY BACK TO 2010, 2011 WHEN GOOGLE, AT THE TIME, WAS UNVEILING THE CARS, THEY WERE SAYING THEY COULD HANDLE ANY ROAD. AND THEN -- WHO WAS RUNNING THE PROGRAM, SAID -- AND WE ARE KIND OF STILL IN THAT PLACE WHERE IT IS A NEAR-TERM THING BUT IT IS ALL VERY VAGUE. WHAT YOU HEAR IF YOU TALK TO PEOPLE WHO ARE OUTSIDE OF THE CORE OF THIS INDUSTRY IS THAT WE ARE TALKING DECADES.
THIS ISN'T TO SAY THERE ARE NOT ADVANCES AROUND IMPORTANT TECHNOLOGY HAPPENING, THAT SOME OF THIS STUFF WON'T CHANGE THE WORLD, IT'S JUST THAT THE FULL-BLOWN LEVEL FIVE AUTONOMY, THE IDEA THAT YOU GET THE CAR WITHOUT A STEERING WHEEL, THAT IS LOOKING INCREASINGLY SHAKY. ONE OF THE REASONS THAT REALLY THE ONLY TWO COMPANIES THAT ARE PUTTING MONEY INTO THIS, BOTH HAVE BIG CORPORATE BACKING. -- IN THE CASE OF GOOGLE. CRUISE IS GM. EMILY: OUR KIDS ARE STILL NOT GOING TO GET DRIVERS LICENSES, RIGHT? >> UNFORTUNATELY. AGAIN, THERE ARE HUGE
IMPROVEMENTS. OUR KIDS WILL MAYBE DRIVE A MUCH SAFER CAR. WE ARE SEEING TESLA'S AUTOPILOT, EVEN THOUGH THEY MARKET IT AS SELF DRIVING IT IS REALLY JUST A GREAT DRIVER ASSISTED TECHNOLOGY . CARS ARE GETTING SAFER. THERE ARE TECHNOLOGICAL ADVANCES.
THIS CRAZY STEERING WHEEL FOR THE LOOKS INCREASINGLY SHAKY. EMILY: TAKE NOTE, PARENTS. MAX CHAPMAN, EXCELLENT STORY YOU CAN CHECK OUT ON BLOOMBERG. COMING UP, GOOGLE'S'S TAKES ON
AMAZON ALEXA AND THE IPAD. EMILY: WELCOME BACK TO BLOOMBERG TECHNOLOGY I AM EMILY CHANG IN SAN FRANCISCO. WE WILL GET BACK TO SEPTEMBER PAYROLL, COMING UP FRIDAY. JOBS NEWS HAVE BEEN MOVING THE
MARKETS FOR MONTHS AS THE FED CUTS INFLATION, THURSDAY NO EXCEPTION,TECH IN THE HEADLINES. ED LUDLOW WITH THE TOP STORIES. ED: BELIEVE IT OR NOT THERE WAS NEWS IN THE LAST ONE HE FOR HOURS THAT HAD NOTHING TO DO WITH ELON MUSK. IT WAS FOCUSED ON JOBS. AMAZON CUT BY HALF PERCENT.
THEY'RE ADDING 150,000 WORKERS FOR THE HOLIDAY PERIOD, THE SAME AS IN 2021, TO HANDLE THE DEMAND. WHAT IS INTERESTING IS IT IS A SIGN DEMAND IS THERE. GENERAL ELECTRIC CUTTING JOBS ACCORDING TO SOURCES IN ITS MANUFACTURING UNIT, RESPONSIBLE FOR CREATING WIND TURBINES, BECAUSE THE DEMAND IS GONE. PELOTON, WE HAVE BEEN SEEKING
ABOUT DURING THE SHOW. I FIND AMAZON INTERESTING, WE ARE BRACED FOR PAYROLL DATE ON FRIDAY, THERE ARE MIXED SIGNALS ABOUT WHAT THE DOBBS -- JOBS MARKET IS LIKE IN THE U.S. IT'S A VOTE IN CONFIDENCE IN CONSUMER DEMAND, AMAZON IS BRINGING THE SAME REINFORCEMENT FOR THE HOLIDAYS AS IT DID IN 2021, EVEN AT A TIME WHERE SALES EMERGENCE ON THE PLATFORM ARE WORRIED THAT THEY ARE BRACING FOR SLOWDOWN IN CONSUMER SPENDING DUE TO INFLATION AND THIS MANY EARLIER IN THE YEAR. YOU SEE DETAILS OF WHAT AMAZON
IS DOING BEHIND ME. BETWEEN MARCH AND JUNE OF THIS YEAR, LARGELY THROUGH ATTRITION, THE REDUCE HEADCOUNT BY 100,000. DURING THE PANDEMIC ERA. THERE'S PELOTON, ANOTHER 500 JOBS TO BE CUT, THAT MAKES IT AROUND 4600 SO FAR THIS YEAR. IS THIS THE FINAL STEP IN THE
PLAN TO TURN AROUND PELOTON'S FORTUNE? WE'VE ALL GONE BACK TO THE GYM. SOME OF US ARE BACK TO THE AFFIX -- FACE -- OFFICE. DEAR PIVOTING TO A MORE ASSET LIFE MODEL. IT IS INTERESTING TO SEE WHAT
TECH IS DOING IN THE CLIMATE -- JOB CLIMATE MARKET. EMILY: THANK YOU. GOOGLE ANNOUNCED A SWEEP OF NEW PRODUCTS, ALONG WITH THE PIXEL SEVEN AND PIXEL WATCH, THEY TEASED AND UPCOMING TABLET TO TAKE ON THE IPAD AND AMAZON'S ECHO DEVICES. LET'S BRING IN THE SCENE -- GOOGLE SENIOR VICE PRESIDENT OF DEVICES AND SERVICES. NEW PHONES AND FEATURES AND, WE ARE IN A DIFFICULT ECONOMIC TIME WHERE CONSUMERS ARE UNDER PRESSURE, PAYING MORE FROM GAS TO GROCERIES. WHAT IS YOUR ARGUMENT TO
CUSTOMERS ABOUT WHY SHE -- THEY SHOULD UPGRADE THEIR SMARTPHONES? >> THANKS FOR HAVING ME. WE ARE EXCITED ABOUT OUR ANNOUNCEMENTS TODAY. FOR A VARIETY OF REASONS. BUT WE BELIEVE THAT PERSONAL COMPUTING TECHNOLOGY, LIKE PHONES, WATCHES, AND EARPHONES AND TABLETS ARE ABSOLUTELY ESSENTIAL COMMUTING CAPABILITIES. A LOT OF PEOPLE MIGHT BE CONCERNED WITH ALL OF THE ECONOMIC UNCERTAINTY, IT'S CRITICAL THAT THESE PRODUCTS ARE IN MARKETING AND IN THE HANDS OF USERS.
WE ARE ALSO OFFERING SOME NEW PHONE CAPABILITIES WITH OUR PIXEL SEVEN PEOPLE FIND TERRIFIC VALUE WE HAVE OUR PIXEL SEVEN PRODUCT AT 599, WITH SOME AWESOME CAPABILITIES FOR FOR $899. WE WANTED TO MAKE SURE THAT PEOPLE HAD SOME GREAT OPTIONS TO CHOOSE FROM IN TODAY'S ECONOMIC UNCERTAINTY. EMILY: SO LET'S TALK ABOUT SOME OF THE TECH YOU BROUGHT BACK FACE UNLOCK AFTER YOU REMOVED IT A FEW YEARS BACK, WHY IS THAT? RICK: WELL, WE HAVE A VARIETY OF WAYS TO UNLOCK YOUR PHONE. WE WANTED TO MAKE SURE WE HAD A
CONVENIENT WAY FOR PEOPLE TO UNLOCK THEIR PHONES. THE PRIMARY WAY IS THROUGH A FINGERPRINT SENSOR WHICH IS ON THE DISPLAY. IT MAKES IT EASY TO UNLOCK YOUR PHONE. ALSO FOR CONVENIENCE, WE ADDED THE ABILITY, OF USING THE FRONT FACING CAMERA AND A LOT OF OUR AI TECHNOLOGY TO UNLOCK THE PHONE USING YOUR FACE AS WELL.
THAT ADDED ELEMENT MAKES IT EASIER TO DO SOMETHING, YOU PROBABLY DO 100 TIMES A DAY. EMILY: SO, LET'S TALK A BIT ABOUT YOUR PROJECTIONS. THERE IS A REPORT FROM NIKKEI, YOU'RE HOPING TO DOUBLE PIXEL SALES, IS THAT THE GOAL AND GIVEN THESE TIMES, WHAT MAKES YOU THINK THAT IS REALISTIC? RICK: OUR PRODUCTS KEEP GETTING BETTER. OUR AIM IS TO CONTINUE TO GROW OUR BUSINESS HERE. WE DID NOT COMMENT ON EXACT PROJECTIONS BUT WE HAVE BEEN GROWING.
WE ARE DOING THAT THROUGH INNOVATIONS AND AI, MAKING SURE OUR PRODUCTS ARE MORE AND MORE HELPFUL FOR OUR USERS USING OUR UNDERLYING AI TECHNOLOGY. AND BY EXPANDING OUR PER FOLIO. WE HAVE THREE TERRIFIC PHONE PRODUCTS WITH SIX A, 7, 7 PRO, HITTING THE MARKET. WE INTRODUCE THE PIXEL WATCH, FOR THE FIRST TIME. WE ALSO HAVE PIXEL BUDS PRO, EARPHONES. THIS COMBINATION OF TECHNOLOGY IS WHAT PEOPLE ARE LOOKING FOR AND IT HAS HELPED OUR BUSINESS GROW. EMILY: HANG ON, RICK. WE ARE GETTING BREAKING NEWS OUT OF THE ELON MUSK/TWITTER SAGA. THE JUDGE IN DELAWARE SAYS THE
DEAL MUST CLOSE BY 5:00 P.M. ON OCTOBER 28, THEY HAVE POSITIVE COURT CASE, THEY WERE EXPECTING THEM TO GO TO TRIAL ON OCTOBER 17. THE JUDGE SAYING IF A DEAL IS NOT CLOSED BY OCTOBER 28, THEY WILL SET A TRIAL DATE OF NOVEMBER. TWITTER SHARES ARE RISING, UP THROUGH PERCENT AT THE MOMENT ON THIS NEWS -- UP 3% AT THE MOMENT ON THIS NEWS.
THE TWITTER TRIAL -- COURT CASE HALTED UNTIL OCTOBER 28, DEPENDING ON AN OFFICIAL DEAL BETWEEN ELON MUSK AND TWITTER. RICK, LET'S TALK A BIT ABOUT WHAT YOU SEE IS A LONG-TERM VIABILITY OF THE HARDWARE BUSINESS. HOW MUCH RUNWAY DO YOU THINK YOU HAVE, I MENTIONED AMAZON, GIVEN ALL OF THE COMPETITION OUT THERE? RICK: THIS IS A VERY LONG-TERM INVESTMENT FOR THE COMPANY. AND THE MARKET WE ARE PURSUING
IS ABSOLUTELY ENORMOUS. MOST IMPORTANTLY, THIS SPACE OF DELIVERING PERSONAL TECHNOLOGY TO OUR USERS IS ABSOLUTELY CRITICAL FOR END USERS. WE SEE IT AS A GREAT WAY FOR PEOPLE TO EXPERIENCE THE VERY BEST TECHNOLOGY GOOGLE HAS TO OFFER. WE TAKE OUR LATEST AI RESEARCH AND MACHINE LEARNING KNOWLEDGE AND BRING IT TO OUR USERS FOR PIXEL. WE SEE THIS IS ABSOLUTELY ESSENTIAL. EMILY: GOOGLE SENIOR VICE PRESIDENT OF DEVICE AND SERVICES RICK OSTERLOH, WITH ALL THE NEWS OF THE MADE BY GOOGLE EVENT. THANK YOU FOR JOINING US.
I WANT TO GET BACK TO THE TWITTER NEWS. THE JUDGE HALTING THE COURT CASE UNTIL OCTOBER 28, SAYING THE DEAL MUST CLOSE BY 5:00 P.M. ED, IF YOU'RE GOING TO DELAWARE, IT WILL NOT BE UNTIL OCTOBER 28. TALK TO US ABOUT THE LATEST HEADLINES. ED: THE DEAL HAS UNTIL FIVE CLOCK P.M. OCTOBER 20 TO CLOSE.
IF THE DEAL DOESN'T CLOSE, THE CHANCE -- THE JUDGE IN ELLA WHERE'S OVERSEEING THIS M&A CASE, SHE SAYS SHE WILL GO TO TRIAL IN. . NOVEMBER -- IN NOVEMBER. YOU SEE TWITTER SHARES UP 1.2% NOW. WE WERE AS HIGH AS 3%, WITHOUT SHARE PUSHING HIGHER, IT IS AN INDICATION FROM WALL STREET THAT THEY SEE THE CHANCES OF THIS DEAL HAPPENING. TWITTER INDICATING THERE COURT FILING EARLIER ON THURSDAY, THAT THEY WANTED THIS TO HAPPEN SOONER. THEY SAID MUSK COULD CLOSE AT
SOONER NEXT WEEK BY THE 10TH. THE 28TH DATE WAS PUT OUT BY THE MUSK TEAM AND THERE COURT FILING, WHEN THEY REQUESTED THE PROCEEDINGS HAPPEN. THAT THIS TRIAL BE PAUSED. TWITTER OPPOSED THAT IN A COURT FILING LATER IN THE DAY.
THURSDAY TWITTER SAID THEY DID NOT WANT TO PAUSE THE PROCEEDINGS. THE JUDGE APPEARED TO HAVE CITED WITH TEAM MUSK AT THIS TIME. EMILY: THE JUDGE IS SAYING SHE WILL SET A DATE FOR NOVEMBER FOR TRIAL IF THE DEAL DOES NOT CLOSE BY OCTOBER 28. THERE IS STILL THIS CONTINGENCY OF THE DEBT FINANCING. ARE WE TO UNDERSTAND BY THIS THAT IS NOT GOING TO BE AN ISSUE OR WE BELIEVE THAT THE MAIN ISSUE THAT REMAINS? ED: IN THE FIRST COURT FILING ON THURSDAY, MUSK'S TEAM SAYS TWITTER WOULD NOT SAY YES TO THE DEAL THAT THEY WERE HUNG UP ON THIS IDEA OF THE DEBT NOT BEING THERE. WHICH THE TEAM INDICATED WAS NOT A PROBLEM.
IN THE FILING THAT TWITTER STEAM GAVE US LATER, THEY SAID THAT MUSK COULD DISCUSS CLOSING THE DEAL WITH THE BANKS. THE CONCERN IS MUSK HAS $12.5 BILLION OF DEBT, SPLIT BETWEEN THE $6.5 BILLION LOAN, $3 BILLION IN SECURED BONDS, THERE IS A REVOLVING CREDIT LINE IN THERE AS WELL.
TIMES HAVE CHANGED SINCE THE DEAL AND THAT PACKAGE WAS AGREED IN APRIL. SO, I GUESS THE CONCERN IS THE VIABILITY OF THE DEBT. HERE AT BLOOMBERG, OUR EXPERT ANALYSTS ARE -- HAVE DUG INTO THIS ISSUE.
IT IS UNTHINKABLE THAT THE BANKS WOULD WALK AWAY FROM GIVING MUSK AND HIS TEAM THE MONEY OR PROCEEDS FROM THAT DEBT. IT WOULD BE A BIG HIT THE THIRD CREDIBILITY. -- THEIR CREDIBILITY. THEY WILL NEED TO SELL THE DEBT TO INSTITUTIONAL INVESTORS.
TWITTER, IF THEY DON'T HAVE CONCERNS ABOUT THE DEBT, THEY HAVE CONCERNS ABOUT WHAT MUSK'S TRUE INTENTIONS ARE. THAT MUCH WE CAN GATHER FROM THE COURT FILING ON THURSDAY. EMILY: ED, WHAT IS YOUR HUNCH? ED: YOU'RE ASKING ME IF WE ARE GOING TO DELAWARE, THAT IS THE QUESTION. [LAUGHTER] WE ARE NOT GOING TO DELAWARE ON OCTOBER 17. TWITTER EMPLOYEES I'VE SPOKEN TO THIS WEEK, MANY OF THEM OUTLINED EARLY, THEY THOUGHT THIS WAS A PLAY FROM MUSK TO GO TO THE ORIGINAL OFFER. WE DON'T KNOW WHAT THE
PSYCHOLOGY AROUND THIS IS. BUT THE JUDGE HAS MADE A FAST DECISION. NO ONE EXPECTED HER TO TAKE THOSE COURT FILINGS, AND DECIDE THIS QUICK. THAT IS WHERE WE STAND. EMILY: WE DO NOT KNOW, EXCEPT THAT IT
IS STILL NOT A DONE DEAL. OK. ED, THANK YOU FOR THE PLAY-BY-PLAY, AS ALWAYS. COMING UP, WHAT WE DO KNOW ABOUT THE EXECUTIVE WHO WITHDREW MILLIONS BEFORE THE BANKRUPTCY. ANOTHER SCANDAL UNFOLDING. EMILY: TIME FOR OUR CRYPTO REPORT, CELSIUS WE ARE LEARNING ABOUT THE FORMER CEO OF THE CRIB NO LENDER WITHDREW MILLIONS, BEFORE STOPPING CUSTOMER WITHDRAWALS. KATIE, WHAT DO WE KNOW? KATIE: JUST TO RECAP THE TIMELINE, WHERE THE FORMER CEO WITHDRAW $10 MILLION IN MAY. THE COFOUNDER AND CHIEF TECHNOLOGY OFFICER ALSO WITHDREW MILLIONS.
IF WE REMEMBER IN JUNE, CELSIUS HELD ITS CUSTOMER WITHDRAWALS AND FILED FOR BANKRUPTCY IN JULY. THE TIMING IS A QUESTION MARK, AS WE WORK THROUGH THIS BANKRUPTCY. WE WILL SEE OTHERS SHAKES OUT AND JUST TO REMIND THE AUDIENCE CELSIUS WAS ONE OF THE HIGHEST LYING LENDERS, PROMISING RETURNS TRYING TO TAKE ON ACTUAL TRADITIONAL BANKS. YOU CAN INVEST YOUR COINS, RECEIVE INTEREST ON THEM, OBVIOUSLY THAT CAME CRASHING DOWN IN A SPECTACULAR WAY. THE SLOW DRIP OF NEWS HAS BEEN FASCINATING TO WATCH AS WE GET CLOSER AND DEEPER INTO THIS BANKRUPTCY. EMILY: SO, IT IS HARD TO BELIEVE
ANYTHING CAN BE MORE EXCITING OR VOLATILE IN TERMS OF THE CRYPTO MARKETS. BUT ELON MUSK AND TWITTER HAS GIVEN US THAT. THERE IS STILL ACTION IN CRYPTO MARKETS. YOU HAVE BEEN WATCHING BITCOIN AND HOW IT HAS BEEN RELATED TO THE MARKET RALLY OR NOT.
WHAT TRENDS ARE YOU PULLING OUT? KATIE: IT IS AMUSING THAT CRYPTO IS THE MARKET RIGHT NOW. A TREND I'VE NOTICED, IS THE CRYPTO EQUITIES, THEY HAVE BEEN OUTPERFORMING THIS WEEK. YOU HAVE BITCOIN HOLDING UP WELL AMID ALL OF THE VOLATILITY WE HAVE SEEN IN THE STOCK MARKET. BITCOIN IS 4% HIGHER OVER THE PAST FOUR DAYS.
IF -- MICROSTRATEGY, COINBASE, THERE UP BY DOUBLE DIGITS, WHICH IS AMAZING TO ME. PART OF THE REASON COULD BE THAT THEY FELT -- FELL DRAMATICALLY THEN BITCOIN ITSELF. IF YOU LOOK AT BITCOIN, IT IS DOWN ABOUT 57%. IF YOU LOOK AT COINBASE, THAT NUMBER IS 71%. IT COULD BE A FUNCTION OF THE FACT THAT THEY FELL FURTHER. THEY HAVE MORE ROOM TO RISE.
IT'S A TREND TO KEEP AN EYE ON. AMID THIS MILD RESILIENCE IN THE CRYPTO MARKET. EMILY: WHAT ARE YOU WATCHING IN THE U.S. OVERNIGHT? KATIE: CAN I SHAMELESSLY PLUG SOMETHING? [LAUGHTER] EMILY: OF COURSE. KATIE: I'M GOING TO GO AHEAD AND DO THAT. CRYPTO IRL, IT'S GOING TO BE ON QUICKTAKE AT 8:30 P.M., EASTERN
TONIGHT, 8:30 P.M. ON FRIDAY NIGHT. WE WILL DIG INTO, AFTER THIS AMAZING DRAWDOWN WE HAVE SEEN BITCOIN DOWN 57% THIS YEAR ALONE . WHO IS GOING TO LEAD THE REBUILD, WAS GOING TO BE THE WINNER, WHO IS GOING TO BE THE LOSER? IT WILL BE CRYPTO NATIVE COMPANIES, OR WHETHER WE WILL SEE TRADITIONAL FINANCE COME IN HERE. EMILY: MY BET IS THAT IT WILL NOT BE THAT AT ALL. EXCITED TO SEE IT. KATIE GREIFELD, CRYPTO IRL, GIVEN A WATCH. COMING UP.
CRYPTO'S CHIEF OFFICER ON A RETURN TO THE OFFICE AND THE FUTURE OF HYBRID WORK. HE IS UP NEXT. THIS IS BLOOMBERG. EMILY: THERE IS ANOTHER SIGN THAT LABOR DEMAND IN THE U.S. MAY BE MODERATING. UNEMPLOYMENT APPLICATIONS ROSE MORE THAN EXPECTED, BY 29,000, THIS AFTER THE LABOR DEPARTMENT SAID THE NUMBER OF AVAILABLE JOBS IN AUGUST DECREASED BY A MILLION.
THIS, IS A RETURN TO OFFICE, IS WANING NATIONWIDE. LAST WEEK WAS THE SECOND STRAIGHT WEEK WERE OFFICE OCCUPANCY BARELY BUDGED, AFTER SHOOTING UP AFTER LABOR DAY. FOR MORE ON THE LABOR MARKET, I WANT TO BRING IN FRAN KATSOUDAS, CISCO EXECUTIVE VICE PRESIDENT. IT'S GREAT TO HAVE YOU BACK WITH US. IT HAS BEEN CALLED THE GREAT RESIGNATION. WE ARE HEARING THE GREAT REALIGNMENT.
WE ARE HEARING ABOUT QUIET QUITTING. WHAT IN YOUR VIEW WAS ACTUALLY HAPPENING WITHIN THE WORKFORCE? FRAN: THANK YOU, EMILY. I'M SO GLAD TO BE WITH YOU. WHAT WE ARE TALKING ABOUT IS AN AMAZING OPPORTUNITY TO THINK ABOUT WORK. SOMETIMES, WHEN WE TALK ABOUT THIS PHASE, WE ARE SO FOCUSED ON WHETHER PEOPLE ARE WORKING FROM HOME OR FROM THE OFFICE, THAT WE DON'T LOOK AT THE OPPORTUNITY FROM A FUTURE OF WORK PERSPECTIVE.
AT CISCO, WE HAVE WORKED HYBRID BEFORE THE PANDEMIC. WE'VE HAD A LOT OF FLEXIBILITY. WHAT WE SEE AT THIS MOMENT IS THAT ONE OF THE MOST CRITICAL ELEMENTS ABOUT WORK IS INCLUSION AND FLEXIBILITY AND UNDERSTANDING THERE ISN'T A ONE-SIZE-FITS-ALL TO THE AMAZING WORK WE HAVE TO DO. IF WE ARE ABLE TO INTERSECT FLEXIBILITY, WITH THE WORK AND INNOVATION IN CONNECTION THAT WE'RE BUILDING, A CAN BE AN AMAZING OPPORTUNITY AND NOT SOMETHING TO DREAD. EMILY: GIVE ME SOME SPECIFICS ABOUT HIS -- HOW CISCO IS CHANGING A STRATEGY NOW. WE ARE COMING OUT OF THE
PANDEMIC. BUT IT'S HARD TO KNOW WHERE THE NEW NORMAL IS GOING TO BE. FRAN: YEAH. THE FIRST THING I WOULD SAY IS I THINK ALL COMPANIES ARE STILL LEARNING AND EVOLVING. THE WAY THAT WE ARE HANDLING
THIS AT CISCO IS IN A DECENTRALIZED WAY. WE ASKED EVERY LEADER AT CISCO TO WORK WITH THEIR TEAMS TO FIGURE OUT AGAINST THE BACKDROP OF THE WORK AND HOW PEOPLE ARE AT THEIR BEST TO MAKE ARRANGEMENTS. FOR SOME PEOPLE THAT MAY BE THAT THEY'RE COMING IN ONCE OR TWICE A WEEK. SOMETIMES IT'S MORE. BUT BECAUSE FROM A CISCO PERSPECTIVE, WE HAVE BEEN DOING THIS FOR SO LONG, WILL WE CAN SEE IS THERE IS AMAZING OPPORTUNITIES. WE SEE THE CAREER TRAJECTORY FOR PEOPLE REGARDLESS OF WHERE THEY’'RE WORKING, CAN BE EQUAL, AND WE ALSO SEE ANOTHER OPPORTUNITY FROM A CISCO PERSPECTIVE, WHICH IS ABOUT THE TECH. WHAT WE SEE FROM OUR CUSTOMERS IS THEY WANT TO HAVE AN EXPERIENCE FOR THEIR PEOPLE THAT IS SIMILAR, WHETHER THEY ARE SITTING IN THE OFFICE OR AT HOME.
I THINK THE OTHER INTERESTING THING NOW IS WE ARE SEEING INCLUSION REALLY INTERSECT TECHNOLOGY IN A VERY DIFFERENT WAY, WHERE THE TECH IS WORKING HARDER TO MAKE SURE THAT EVERY PERSON IS PULLED INTO A MEETING, INNOVATION, OF RAIN FORMING SESSION ON A WHITEBOARD. THAT IS GOING TO BE CRITICAL FOR ALL COMPANIES MOVING FORWARD. EMILY: THAT IS AN OPPORTUNITY FOR CISCO'S WEBEX. I'M CURIOUS ON YOUR TAKE ABOUT SAN FRANCISCO'S DOWNTOWN, WHICH IS NOT RECOVERED FROM THE PANDEMIC.
IT SEEMS TO BE COMING BACK SLOWLY THAN OTHER U.S. CITIES. DO YOU THINK IT EVER WILL BE THE SAME? WHAT DOES THAT MEAN FOR TECH CULTURE? FRAN: I DON'T THINK IT WILL BE THE SAME. I THINK THAT'S PART OF THE PROBLEM. A LOT OF COMPANIES ARE STEPPING INTO THIS WANTING TO GO BACK. WHAT WE'RE ARE REALIZING AT
CISCO IS THAT WE HAVE TO INVITE OUR PEOPLE BACK INTO THE OFFICE. WE'RE TALKING ABOUT OUR LEADERS, THAT IS HAVING A NEW ROLE, BEING THE EVENT MANAGERS, THAT ARE REALLY THINKING ABOUT THAT CONNECTION. THE AMAZING THING IS ALL COMPANIES WANT THE CONNECTION. THEY WANT TO HAVE THE CULTURE.
BUT ASKING PEOPLE TO COME IN AND SIT ON THEIR OWN WHILE THEY DO THEIR VIDEO CALLS OR THEIR EMAILS, JUST DOESN'T MAKE SENSE TO OUR PEOPLE. I THINK IT'S GOING TO BE THE FOCUS ON THE ANNIVERSARY CELEBRATION, THE BRAIN STORMING SESSION, MAYBE THE COMMUNITY GIVE BACK, THAT WILL BRING OUR PEOPLE INTO THE OFFICE IN A DIFFERENT WAY. WE HAVE TO LEAN INTO THAT TREND AND TRY NEW THINGS UNTIL WE FIND WHAT WORKS. EMILY: IS SILICON VALLEY STANDARD OF OFFICE GYMS AND CATERED FOOD AND ON-SITE LAUNDRY, IS THAT ERA OVER? FRAN: GOODNESS. THAT'S A TOUGH QUESTION. I WILL TELL YOU AT THE MOMENT,
I DON'T THINK THOSE PERKS ARE AS VALUABLE AS THEY ONCE WERE. WHAT WE ARE HEARING FROM OUR PEOPLE IS THEY WANT TO WORK IN AN ENVIRONMENT WHERE THEY CAN CONTRIBUTE, WHERE THEY CAN HAVE IMPACT, WHERE THEY CAN DECIDE ON A WEEK TO WEEK BASIS WHETHER OR NOT THEY'RE COMING IN. I THINK THERE'S GOING TO BE A NEW SET OF BENEFITS AND PERKS THAT ARE MORE MEANINGFUL TO OUR PEOPLE. IT'S INTERESTING. WHEN I TALKED TO MY PEERS ACROSS THE INDUSTRIES AND FOR THOSE COMPANIES THAT ARE MANDATING THAT THEIR PEOPLE COME BACK, THEY ARE SHOWING THAT THEIR PEOPLE ARE NOT COMING BACK. IT'S NOT THESE PERKS THAT WILL BRING THEM BACK. IT'S GOING TO BE ONE ANOTHER, TEAMS, AND HAVING A CAREER THAT FITS YOUR GOAL. EMILY:
SO IN A RECESSION, IT'S THE EMPLOYER'S THAT HAVING UPPER HAND -- THAT HAVE AN UPPER HAND, WOULD YOU SAY THAT? FRAN: SO, I WAS STILL SAY THAT THE INDIVIDUAL HAS A TREMENDOUS AMOUNT OF POWER IN THIS ENVIRONMENT. IF I LOOK AT AN AREA LIKE SECURITY, WE KNOW THAT 700,000 ROLES ARE STILL OPEN. AND THAT MEANS THAT COMPANIES ARE CONTINUING TO BE FLEXIBLE. THEY WILL BE THOUGHTFUL. AT THIS MOMENT, I WAS STILL SAY THE INDIVIDUAL HAS THE POWER.
BUT I DO BELIEVE THAT WE WILL SEE SOME MORE BALANCE AS WE MOVE FORWARD. EMILY: ALL RIGHT. FRAN KATSOUDAS, EXECUTIVE VICE PRESIDENT OF CISCO. THANKS FOR HAVING -- GREAT TO HAVE YOU WITH US. THAT DOES IT FOR THIS EDITION OF A BLOOMBERG TECHNOLOGY.
WE HAVE A GREAT SHOW COMING UP ON FRIDAY. WE WILL BE TALKING ABOUT TECH SENTIMENT IN RESPONSE TO THE U.S. A JOBS REPORT. DON'T FORGET TO CHECK OUT OUR PODCAST. I'M EMILY CHANG IN SAN FRANCISCO.
2022-10-07 21:33
