Bloomberg Technology 08/30/2023
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE EDWARD BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE PC SLUM CONTINUES. A DATE -- HP FALLS, CUTTING HIS
PROFIT OUTLOOK. WE WILL BRING YOU THE SAFE FOR CONSUMER ELECTRONICS. ED: HAS APPLE SETS A DATE -- AS APPLE SETS A FOR THE IPHONE 15, HUAWEI REVEALS A MYSTERIOUS NEW SMARTPHONE. FULL COVERAGE STRAIGHT AHEAD.
CAROLINE: AND WILL WE -- WE WILL HEAR FROM THE CEO GRAYSCALE SITTING DOWN WITH THE LEADERS OF SEVERAL COMPANIES TO TALK EV'S IN SEMICONDUCTORS. LET'S CHECK IN ON THE MARKETS. AFTER YESTERDAY'S HARD RALLY, WE ARE MANAGING TO TREAD WATER WHEN LOOKING AT THE KEY BENCHMARKS. NASDAQ .6%, VOLUMES ARE DOWN, BUT MAYBE THE GOOD NEWS AND THE BAD NEWS OF THE GDP DATA AND JOBS DATA IN THE UNITED STATES, LOOKING AT THE TWO YEAR YIELD, WE FOLLOW HER AS THE FEDERAL RESERVE HAS A LITTLE MORE BREATHING ROOM AND IT COMES TO AN ECONOMY THAT CONTINUES TO PUSH FAST WHEN IT COMES TO JOBS AND GROWTH. I'M LOOKING A BIG COIN, UP BY
1.4%. THIS IS AMID A WEAKER U.S. DOLLAR ON THE BACK OF THIS MACRO DATA BUT AFTER THE RUN-UP YESTERDAY AFTER THE ETF NEWS WHICH WE WILL DIG INTO, MAYBE SEEING PROFIT-TAKING BUT LET'S FOCUS IN ON THE MACRO DATA. THE PICTURE THAT MEANS THE FEDERAL RESERVE MAYBE DOESN'T HAVE TO BE HIKING THE WAY WE ANTICIPATED. WE KNOW INFLATION PRESSURE IS THERE BUT IT IS COOLING, JOBS DATA COMES FRIDAY, BUT THIS ADP NUMBER SHOWING THE WEAKEST IN FIVE MONTHS, WHAT IS THAT MEAN BY PERHAPS A STUDYING, STABILIZING U.S. ECONOMY THAT DID NOT GROW AT THE ANTICIPATED LEVEL OF 2.4%
IN THE SECOND QUARTER AND CORPORATE PROFITS ARE COMING DOWN AND WE SEE REAL PRESSURE THERE. I'M LOOKING AT WHAT IS HAPPENING IN TERMS OF THE FED'S NEXT MOVE AND WE KNOW THE RATES ARE 5.5%. WILL THEY BE ABLE TO STAY THE COURSE AND KEEP AT THIS LEVEL RATHER THAN HIKING MORE? ED: WE LOOK AT RATES IN THE CONTEXT OF EARNINGS BUT BECAUSE THE TECHNOLOGY SECTOR. THE HIGH RATES ARE IMPACTING THE PRESENT VALUE OF FUTURE CASH FLOWS, HOW WE VALUE STOCKS. THAT IS THE HARD ECONOMIC DATA, THE COMMENTARY FROM A MACRO PERSPECTIVE OF COMPANIES LIKE HP IS SO IMPORTANT. THE DOCK -- THE STOCKS DOWN 7%, AT 1.11%, BIGGEST DROP IN THREE
YEARS AFTER THEY SCALE BACK EARNINGS GUIDANCE. THE STORY IS REALLY SIMPLE, THE RECOVERY AND DEMAND FOR PC AND LAPTOP, IT IS NOT THERE. NOT AS THEY ANTICIPATED IN THE FIRST HALF OF THE YEAR WHEN HP LIKE EVERYONE IN THE MARKET SAID SECOND HALF OF 2023. THE PC MARKET WILL IMPROVE AND IT HAS NOT ACTED THAT WAY. THIS IS A CHART TO ILLUSTRATE THE POINT. THIS IS A STRONG REACTION AND WE ARE BASICALLY CONTRADICTING WHAT WE HEARD 24 HOURS AGO FROM BEST BUY, THAT THEY SAW STABILIZATION BOTTOMING OUT IN THE PC MARKET AND REASONS FOR CONSUMERS TO CARRY ON BUYING.
CONFUSING. CAROLINE: IT IS. WE HAVE BLOOMBERG'S BRODIE FORD, ALL EYES ON HP AND INTERESTING ON THE DAY WE GET HP THAT SEEMED A LITTLE MORE OPTIMISTIC ABOUT BUSINESS SPENDING BUT IS THIS ALL ABOUT THE CONSUMER WHEN IT COMES TO HP? BRODIE: IT HAS BEEN THIS PIECE OF -- PC APOCALYPSE FOR YEAR. IT'S BEEN A LONG TIME COMPANIES SAYING IT IS BOTTOMING OUT AND PEOPLE ARE GOING TO START BUYING COMPUTERS AGAIN AND IT KEEPS GETTING PUSHED BACK AND YOU HAVE THIS CONSUMER -- QUESTION ABOUT CONSUMER OR ENTERPRISE. FOR A WHILE PEOPLE ASSUMED
CONSUMERS ARE NOT BUYING COMPUTERS AS MUCH, THAT'S OK, BUT BUSINESS AS WELL. WHAT WAS CONCERNING IN LAST NIGHT'S REPORT WAS ENTERPRISE WAS CONTINUING TO BE WEAKER. THE REASONS FOR THAT IS THE KIND OF MACRO FEARS EVERY BUSINESS FEELS, DO WE WANT TO SPEND MONEY RIGHT NOW BUT ALSO BECAUSE OF LAYOFFS. YOU HIRE SOMEBODY NEW, YOU BUY
A LAPTOP. SO YOU ARE LESS HIRING PEOPLE, LESS BUYING LAPTOPS. ED: I THINK THE THING ABOUT THE STORY IS HP BASICALLY SAID THE PC DEMAND PICTURE IS IMPROVING, IT IS JUST NOT IMPROVING AS MUCH OR QUICKLY AS WE THOUGHT IT WAS GOING TO. BRODY: CORRECT. ED:
OR THEY SAID IT WAS GOING TO. THEN THERE IS THE PRINT BUSINESS, WHICH WE NEVER TALK ABOUT. THAT WAS A BIG DISAPPOINTMENT, RIGHT? BRODY: THAT'S RIGHT. THE PRINT BUSINESS WAS HURT BECAUSE ESPECIALLY BECAUSE OF THE WEAKER YEN, SOME OF THE JAPANESE MAKERS WERE ABLE TO PRICE BETTER AND THAT IS A BIG PART OF THE STORY ACROSS COMPUTER AND PRINTER IS THAT EVERY SINGLE MANUFACTURER IS HAVING THIS PROBLEM RIGHT NOW. MOST ARE SITTING ON A BUNCH OF
INVENTORY THAT IS GETTING OLDER EVERY DAY AND SO PRICES ARE COMING DOWN. IF YOU WERE LOOKING TO GET A LAPTOP RIGHT NOW FOR THE HOLIDAY SEASON, THE GENERAL THOUGHT IS THEY WILL BE DUMPING A LOT OF MATERIAL, A LOT OF INVENTORY FOR LOWER PRICES. GOOD FOR CONSUMER, NOT SO GOOD FOR CORPORATE EARNINGS REPORT. CAROLINE:
LOOK AT THAT PRINTER PICTURE THAT WE HAVE, NOT USING THAT NEARLY ENOUGH. I LIKE YOU MENTIONED THE YEN AND I LIKE THEREFORE IT TAKES US GLOBAL. BECAUSE THERE IS WEAKNESS IN CHINA. HOW GLOBAL A PICTURE IS HP TRYING TO PAINT US BECAUSE WE GET FOCUS ON THE U.S., PARTICULARLY GDP DATA TODAY.
BRODY: THEY SAID THAT'S A BIG PART OF IT, WEAKNESS IN CHINA, BUT I DID NOT GET THE SENSE THAT THAT WAS A MAJOR FACTOR. I THINK THAT WAS PART OF THE MAIN CONSTELLATION OF FACTORS. I THINK THE PIECE THAT WAS MOST CONCERNING IS THAT BUSINESSES ARE BUYING NEW CONSUMERS -- NOT BUYING NEW COMPUTERS IN THE WAY THEY EXPECTED.
EARLIER IN THE YEAR IT WAS IF WE GET TO THE BACK HALF OF THE YEAR , THE ECONOMIC PICTURE IMPROVED, BACK-TO-SCHOOL SALES, CHRISTMAS, LIFE WILL BE GOOD, AND IT HAS NOT PANNED OUT THAT WAY SO WEAKNESS IN CHINA IS PART OF IT. CHEAPER PRINTERS IN JAPAN BECAUSE THE YEN IS PART OF IT BUT THE U.S. CONSUMER STORY, U.S. BUSINESS TOUR IS CLOSE TO THE HEART OF WHAT IS DRIVING DOWN THE STOCK. ED: BRODY FORD ON THE PC APOCALYPSE, THANK YOU FOR THAT. BRODY: THANK YOU. ED:
LET'S MOVE FROM PCS AND TURN TO A SLOWDOWN IN THE HEDGE FUND INDUSTRIES. SPECIFICALLY FUNDS RUN BY TIGER CUTS, THE NAME GIVEN BY THE PROTEGES OF JULIAN ROBERTSON, WRITING, BLOOMBERG'S HELEN FARMER JOINS US. HAVE THE CUT OF CASH FLOW TO A TRICKLE WHICH I LOVED IN YOUR HEADLINE WITH THE NUMBERS ARE DRAMATIC. WHAT IS HAPPENING HERE? >> THESE ARE SOME OF THE HEDGE FUNDS BIGGEST NAMES, MOST INFLUENTIAL STOCK PICKERS. FOR YEARS INVESTORS WERE TRYING
TO GET INTO THESE HEDGE -- HEDGE FUNDS THE TIGER CUBS, AND WHAT WE SEE, AFTER LAST YEARS DIFFICULT YEAR IN TERMS OF PERFORMANCE, INVESTORS FROM THE U.S. ARE APPEARING TO BE LESS LIKELY AND SOURING ON INVESTIGATING -- INVESTING IN THESE HEDGE FUNDS. YOU ARE LOOKING AT A DROP IN THE NUMBER OF DOLLARS THAT HAVE COME INTO THESE FUNDS FROM U.S. INVESTORS. A DROP OF 99%, 98%, 81%, DRAMATIC NUMBERS. CAROLINE: DRAMATIC. GIVE US THE CONTEXT. ANY PUSHBACK THEY HAVE SAYS
LOOK, CLOSED FUNDS, WE WERE LIMITING THE AMOUNT OF CASH BUT IS THAT A REALITY? HEMA: SOME OF THE FUNDS WERE OPEN. IF WE LOOK AT D1, COHEN TO COME A LOW PINE, TWO WERE AFFECTED, VIKING AND TIGER GLOBAL. WHEN IT COMES TO A FUND TO BEING CLOSED, WE HAVE SEEN A NUMBER OF FUNDS TAKEN AS MUCH AS $1 BILLION. THEY COULD BE REPLACING REDEMPTIONS, THEY COULD BE MAKING EXCEPTIONS FOR INFLUENTIAL INVESTORS OVER BIG TICKETS. A FED MAY BE CLOSED AND EVEN IF THEY ARE AND THEY SEE A SHARP REDUCTION IN INFLOWS, AS ONE OF THE PEOPLE WE QUOTED IN OUR STORY SAID, IT MAY BE A SIGN INVESTORS HAVE DRIED UP.
TIGER GLOBAL DID TURN DOWN A COUPLE INVESTORS WHO WANTED TO INVEST IN THEIR FUND SO WE ARE IN -- IT'S A COMPOUND OF HOLISTIC LOOK THAT WE ARE TAKING BUT A FACT A FUND IS CLOSE DOES NOT NECESSARILY MEAN MONEY DOESN'T COME INTO THE VEHICLE. ED: YOU AND THE TEAM HAVE BEEN TROLLING THROUGH THE FORM D FILINGS THAT CAROLYN AND I WENT THROUGH. YOU ARE GOING THROUGH THE 40 FILINGS WHAT ARE THEY AND WHAT TO THEY TELL YOU ABOUT THE FUND RAISING ENVIRONMENT RIGHT NOW? HEMA: THE FORM THESE ARE THE FILINGS THESE HEDGE FUNDS HAVE TO -- FORM D'S ARE THE FILINGS THE HEDGE FUNDS HAVE TO DO AND IT SHOWS WHAT THEY'RE MANAGING ON AN ANNUAL BASIS. WE SEE THE HEDGE FUND
FUNDRAISING ENVIRONMENT IS DIFFICULT AND HAS BEEN DIFFICULT FOR SOME TIME. SO YOU ARE SEEING $13 BILLION IN REDEMPTIONS FROM THE HEDGE FUND SPACE IN GENERAL AND SO INVESTORS ARE PUMPING BACK FROM THE UNIVERSE, IT HAS BEEN TRICKY WITH RISING INTEREST RATES, FOR NEW FUNDS A CAN ALSO BE QUITE DIFFICULT. THIS IS EXISTING IN AN ALREADY EXISTING TOUGH TIME TO RAISE CAPITAL GIVEN THE STEEP DECLINE IN INFLOWS DOES SEEM TO BE WORSE THAN THE ENVIRONMENT ITSELF. CAROLINE:
THE REASON THIS IS SO IMPORTANT TO OUR VIEW, LOOKING AT THE WEBSITE, FOCUSED ON PUBLIC AND PRIVATE COMPANIES IN THE GLOBAL INTERNET AND SOFTWARE , THE FINANCIAL TECHNOLOGY INDUSTRIES. THIS HITS HOME PARTICULARLY IN THE SHOW SO WE THANK YOU SO MUCH FOR ALL OF THAT WHEN IT COMES TO THESE TIGER CUBS. HEMA PARMAR, BRILLIANT REPORTING. WE WILL GET ANOTHER CHECK ON THE MACRO ECONOMY AND HOW MUCH COMPANIES WANT TO SPEND, PARTICULARLY WHEN IT COMES TO EV'S. ANOTHER CEO WILL JOIN US AS
THEY UNVEILED NEW PRODUCTS TO DRIVE STRENGTH IN THE FUND AND COMMERCIAL UNIT. ED: I'VE GOT BREAKING NEWS IN THE LAST HOUR, THIS HAS MOVED QUICKLY. BLOOMBERG REPORTED FIRST THE CYBER ADMINISTRATION OF CHINA WAS GOING TO PICK BY DO AS ONE OF THE FIRST CHINA TECH COMPANIES AUTHORIZED TO ISSUE A GENERATIVE AI TO THE PUBLIC. THAT HAPPENS, WE REPORTED THAT, AND THE SHARES, U.S.
ADRS, JUMPED. IN THE LAST FEW MINUTES BAIDU , POSTED A BLOG SAYING IT WILL ROLL OUT THAT GENERATIVE AI TOOL TO THE PUBLIC STRAIGHTAWAY. A BIT OF A SPIKE BUT INTERESTING AND FAST-MOVING DEVELOPMENTS OUT OF CHINA. THIS IS BLOOMBERG.
CAROLINE: LET'S TALK EV'S AND FORD PROBE BECAUSE THE COMMERCIAL DIVISION AFFORD REVEALING NEW CHARGING HARDWARE FOR ITS ARRAY OF CONTENT SOLUTIONS TO HELP MAKE IT BASICALLY EASIER FOR YOU, THE COMMERCIAL CUSTOMER TO TRANSITION TO ELECTRIC. HOW IS THAT GOING IN THIS MICROENVIRONMENT? I AM PLEASED TO WELCOME FORD PRO CEO. THE MACRO PICTURE TODAY WHERE GDP IS NOT AS STRONG AS EXPECTED, WHEN JOBS ARE NOT GROWING AT ANTICIPATED AMOUNTS WE HAVE SEEN, ARE PEOPLE WANTING TO UPDATE ELECTRIFIED, INVEST IN THEIR BUSINESSES? >> ABSOLUTELY. WHAT WE ARE SEEING IS IN THE SECOND QUARTER, THERE IS THREE YEARS OF PENT UP DEMAND FOR THE VEHICLES INTERNAL CONGESTION AND BATTERY ELECTRIC DOING ALL THAT SUPPLY CHAIN PROBLEMS WE HAD. WE SEE CUSTOMERS FOR SUPER DUTIES AND TRANSITS, BOTH NORTH AMERICA AND EUROPE, LOOKING FOR VEHICLES. MY BIGGEST ROUTLEDGE WITH MOST
MY CUSTOMERS IS CAN I GET MORE. CAROLINE: INTERESTING. SO YOU ARE TRYING TO MARRY UP THE SUPPLY DEMAND EQUATION AT THE MOMENT. I AM INTERESTED IN ULTIMATELY THEREFORE HOW YOU ARE SETTING YOURSELF APART. WHAT IS IT THAT MAKES YOU GO YES, FORD PRO, OVER EVERYTHING ELSE? TED: WE HAVE THIS AMAZING BACK BUSINESS -- BACKBONE OF THE BUSINESS WHERE WE DO TRUCKS IN NORTH AMERICA AND EUROPE, NUMBER ONE IN YOUR FOR EIGHT YEARS IN A ROW, 40% OF THE SHARE OF COMMERCIAL TRUCKS AND VANS, WE ARE THE BIG GUY. WE ARE EXPANDING IN NOT JUST
VEHICLES, IT IS VEHICLES, SOFTWARE, SERVICE, CHARGING, FINANCING, PUTTING THAT ALTOGETHER SO WE HAVE THIS AMAZING BUSINESS, A ONE-STOP SHOP FOR CUSTOMERS, THE EASY BUTTON. ED: IT'S GOOD TO CATCH UP. I FIND THE COMMERCIAL BUSINESS FASCINATING BECAUSE YOU'RE NOT JUST SELLING A VEHICLE THAT HAPPENS TO BE ELECTRIC, YOUR PACKAGING IT UP. YOU MENTIONED YOUR FOOTPRINTING. I WONDER IF YOU HAD A BETTER SENSE OF WHY THE EV ADOPTION IS SLOWING IN THE U.S., VIS-A-VIS AND IN -- INDEED CHINA. TED: YOU AND I TALKED ABOUT YEARS AGO AND WE ARE GETTING READY FOR PRODUCTS. COST OF FUEL IN EUROPE WAS HIGH
AND THERE WAS A ARE SURE TO LOOK FOR OTHER SOLUTIONS. WHAT WE SEE NOW IN BOTH REGIONS IS IT IS GOOD BUSINESS, TOTAL COST OF OWNERSHIP, UPTIME, PRODUCTIVITY SOLUTIONS, THEY CAN SAVE MONEY ON FUEL, MONEY ON REPAIRS, IT IS A GREAT SOLUTION FOR MANY CUSTOMERS IN BOTH REGIONS, AND THAT IS WHAT WE ARE SEEING AND THAT IS WHY WE OPT A LOT OF OUR PRODUCTION DEMAND FOR LIGHTING IN NORTH AMERICA AND THAT IS GETTING THE TOOL FOR THE JOB. ED: THE FORD CEO TALKED ABOUT THE CONSUMER, SORT OF REJECTING HIGHER PRICES FOR EV'S.
DO YOU SEE THAT FROM YOUR COMMERCIAL FLEET CUSTOMERS AS WELL? ON THE PRICING ISSUE. TED: I SAY WE ARE CAREFULLY MATCHING PRICING AS WE INCREASE THE SUPPLY VEHICLES NOW THAT WE ARE GOING TO THE EXTRA SHIFTS WE PUT ON OF LIGHTNING AND HAVING THE BATTERY CAPACITY. A LOT OF VISITORS -- A LOT OF IT IS EDUCATION. IN THE COMMERCIAL SPACE, THE
DECISION PROCESS IT LONGER. THIS IS A BIG INVESTMENT, FACILITIES ARE USED TO MAKING INVESTMENTS, GETTING THE EXCEL SPREADSHEET OUT, AND THE LEARNING PROCESS IS GETTING LONGER. WHEN YOU STACK ON APPLYING FOR INCENTIVES, UTILITY INFRASTRUCTURE, THIS TURNS INTO A LONGER PROCESS THAT MOVES THROUGH THE CYCLE. THAT IS WHAT WE ARE HELPING A LOT OF OUR CUSTOMERS AND DEALERS AS THEY WORK WITH NEW CUSTOMERS. ED: I HAVE BEEN OUT IN SOME VINEYARDS AND WINERIES NEAR TO WHERE I AM NOW AND THEY DEMONSTRATED TO ME NOT JUST THAT THEY RUN THE F-150 LIGHTNING BETWEEN POINT A AND POINT B BUT THAT THEY ARE USING YOUR DATA AND SOFTWARE OFFERING TO KIND OF OPTIMIZE THAT ROUTE, EVERYTHING FROM GETTING DOWN TO THE MOST EFFICIENT MILE THEY CAN DRIVE.
PETER STEARNS JOINED FORD COME A LONG EXEC, I WANTED TO KNOW IF YOU COULD TELL US WHY THAT MOVE CAME AND WHAT KIND OF IMPACT HE WILL HAVE ON IMPROVING THAT SOFTWARE OFFERING. TED: I THINK THIS IS ON THE WHOLE FORD PLUS PLAN WE ARE ALL TALKING ABOUT ELECTRIFICATION ALL THE TIME BUT THE REAL SECRET IS THE CONNECTED VEHICLES, DIGITAL AND PHYSICAL SERVICES. THAT IS THE BIG CHANGE. WHEN YOU HAVE A VEHICLE THAT IS SIGNALING A REPAIR THAT NEEDS TO BE MADE, YOU CAN PREORDER THE PART, SCHEDULE AT THE DEALERSHIP, LINK THAT TOGETHER LIKE YOU SEE AND SOME IN CASES WHERE SOFTWARE PROVIDES MORE CONVENIENT, PRODUCTIVE SOLUTIONS FOR THE CUSTOMERS. PETER IS A SPECIALIST IN THE
SPACE AND HAS BEEN DOING SUBSCRIPT AND SERVICES AT LARGE VOLUME AT APPLE, BUT THE SCIENCE YOU HAVE SEEN OF WHERE AND HOW TO CHANGE THE EXPERIENCE FOR THE CUSTOMERS IN A POSITIVE WAY AND HE IS GOING TO LEND US THAT EXPERIENCE ON THE PRO SIDE BUT ON OUR OTHER SOFTWARE DEFINED BUSINESSES. FOR EXAMPLE WHERE YOU CAN HAVE HANDS-FREE DRIVING IN THE BLUE CRUISER ZONES AND IN THE FUTURE WILL BE APPEALING FOR COMMERCIAL CUSTOMERS. IMAGINE A COMMERCIAL CUSTOMER THAT CAN GET HIS TIME BACK ON THE HIGHWAY. TIME IS A HUGE VALUE. OR YOU ARE IN TRAFFIC INTO
LONDON, STUCK IN THOSE MILES AND MILES OF CUES. IT IS A GREAT THING TO NOT HAVE TO BE HAVING THE HANDS AT THE WHEEL. CAROLINE: YOU KNOW A COUPLE PEOPLE YOU'RE TALKING TO UNDERSTAND THE TRIALS AND TRIBULATIONS.
YOU TALKED ABOUT THE SUPPLY DEMAND DYNAMIC, THE FACT THAT MANUAL HEADACHE IS GETTING ENOUGH VEHICLES INTO YOUR CLIENTS HANDS. HOW MUCH OF A HEADACHE MORE -- HOW MUCH MORE OF A HEADACHE'S THAT WHEN NEGOTIATING WITH WORKERS, PARTICULARLY UNITED AUTO WORKERS? HOW IS THAT GOING WITH YOUR BUSINESS? TED: THE MAIN THING FOR US IS THE WORKERS ARE OUR TEAM. WE ARE ONE TEAM AND ONE OF THE THINGS WE ARE PROUD OF HIS WE BUILT MORE VEHICLES IN AMERICA THAN ANYONE ELSE. WE EMPLOY MORE HOURLY GUYS THAN ANYONE ELSE, WE EXPORT MORE THAN ANYONE ELSE, SO IT IS A TEAM DOING THESE AND WE ARE HAPPY TO PERUSE THESE F-SERIES VANS AND PICKUPS IN THE U.S.. WHEN WE LOOK AT THAT, IT IS GOING TO GO THROUGH THAT PROCESS NOW. THIS IS A NORMAL NEGOTIATION, I'M NOT IN THE HEADS AND THROWS BUT I WAS IN KANSAS CITY VISITING OUR TEAM BECAUSE WE JUST CAN'T TO THREE SHIFTS ON TRANSIT EARLIER THIS YEAR BECAUSE THE DEMAND IS STRONG.
ED: FORD PRO CEO, TED CANNIS, WE ALWAYS TALK ABOUT EV'S IN THE CONTEXT OF CONSUMER BUT DON'T TALK ABOUT THESE OURS BUSINESSES BUYING UP FLEETS. THANK YOU SO MUCH FOR YOUR TIME. FROM SF, FROM NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TIME NOW FOR WORK SHIFTING. WE WILL HAVE A LOOK AT THE CHANGING LANDSCAPE IN THE LABOR MARKET AMID THESE CHANGES IN TECHNOLOGY. AFTER MANY LAYOUTS, TECH EMPLOYERS ARE BEEFING UP STAFF WITH SPECIALITIES IN AI. THE BAY AREA IS BECOMING THE EPICENTER.
OPENAI IS ON TRACK FOR $1 MILLION OF ANNUAL REVENUE, BUSINESSES ADOPTING THE TECHNOLOGY BEHIND CHATGPT. TURNING BACK TO THE COURT RULING CANCELING THE SEC ORDER TO REJECT GRAYSCALE'S BITCOIN ETF APPLICATION, THE GRAYSCALE CEO JOINED BLOOMBERGTV EARLIER. >> WE WILL HAVE TO SEE ON THE FINAL OPERATIONAL PROCEDURES THAT COME THROUGH THE FINAL MANDATE THE COURT WILL ISSUE. >> OH YOU DON'T KNOW BUT YOU MAY. >> WE DON'T KNOW WHAT THE FINAL OPINION WILL SAY UNTIL WE REACH THAT OF THAT PERIOD, CORRECT. >> I HAVE BEEN READING STUFF FROM YESTERDAY THAT YOU MAY HAVE WON THIS BATTLE BUT LOSE THE WAR AND THERE IS A BUNCH OF OTHER COMPETITORS NOW SO NOW YOU WILL NOT BE THE ONLY HORSE IN TOWN.
>> YES. THIS IS THE TOPIC WE HAVE TALKED ABOUT BEFORE, IT IS REALLY A WORLD IN WHICH THERE ARE MULTIPLE SPOT PRODUCTS, A WORLD THAT GRAYSCALE HAS LONG BEEN READY FOR. THERE ARE MULTIPLE BITCOIN FUTURES PRODUCTS AND WE BELIEVE THERE ARE A WORLD -- THERE WILL BE A WORLD WITH MULTIPLE SPOT BITCOIN PRODUCTS. WE WANT INVESTORS TO HAVE CHOICE.
SOME OF THE THINGS WE THINK INVESTORS WILL LOOK TO WHEN THEY ARE MAKING THOSE ALLOCATION DECISIONS ARE THE SIZE OF THE FUND, LIQUIDITY OF THE FUND, TRACK RECORD OF THE FUND. G PTC IS THE LARGEST BITCOIN FUND IN THE WORLD, OWNED BY ALIENS AND MILLIONS OF INVESTORS, IT HAS 3% PLUS IN THE OUTSTANDING BITCOIN SUPPLY AND NOW HAS ALMOST A 10 YEAR TRACK RECORD OF OPERATIONAL SUCCESS. WHEREAS A LOT OF THE OTHER PRODUCTS COMING TO MARKET ARE MAKING USE OF GPT SEES OPERATIONS, DISCLOSURES, REPORTING AND GPT C IS PAVING THE WAY TO BROADEN THE MARKET. >> THERE'S ANOTHER MASSIVE MARKET QUESTION, NOT JUST ABOUT THE PACE AND TIME BUT THE STRUCTURE AND FEES.
IF YOU LOOK AT BLACKROCK, INVESCO, FIDELITY, THESE ARE ASSET MANAGERS WITH A HISTORY OF COMING IN LOW. IF YOU LOOK AT THE OFFERS AND MADE PROFITABLE ENTITY FOR DIGITAL CURRENCY GROUPING GRAYSCALE, HOW MUCH LOWER EXACTLY CAN SEES GET IN THE FORM OF A ETF. >> WHAT I'VE COMMITTED TO HISTORICALLY AND WE WILL SAY AGAIN TODAY, WE ARE COMMITTED TO LOWERING FEES WHEN GPTC CONVERSED TO AN ETF. WE WILL HAVE TO COME BACK ON AND TALK TO ABOUT WHAT THE FEES ARE WHEN THAT CONVERSION AXLEY HAPPENS. >> SO THE OTHER STRANGENESS IS THE DISCOUNT, THE GPTC IS CURTLY TRADING OUT. YOU HAVE GONE FROM 24 YESTERDAY TO 15 BELOW NASA VALUE BACK TO 20.
CAN YOU ANSWER TO THIS MARKET VOLATILITY HERE AND UNCERTAINTY INVESTORS ARE GRAPPLING WITH AS YOU HAD TO WEAR THIS PROCESS? >> THERE'S A COUPLE THINGS IN THAT DYNAMIC. NUMBER ONE, THERE WAS INCREASED TRADING VOLUME YESTERDAY IN GT -- GPTC, EXCITEMENT AND ENTHUSIASM BASED ON THE VICTORY GPTC SHAREHOLDERS HAD IN THE COURT YESTERDAY. AS WE EVENTUALLY APPROACH AN ETF, YOU WOULD EXPECT EVENTUALLY THERE WOULD BE AN ARBITRAGE MECHANISM THROUGH THE ETF THAT WILL ALLOW FOR ANY PREMIUMS OR DISCOUNTS TO BE ELIMINATED. THAT IS A REALLY IMPORTANT FUNCTION OF WHY ETF'S ARE IN THE CAPACITY THEY DO AND IT IS THE CORE OF WHAT WE HAVE BEEN FIGHTING FOR THROUGHOUT THIS ENTIRE LAWSUIT. ED: LET'S GET SOME MORE, BLOOMBERG SONALI BASAK CARE.
THAT WAS THE INTERVIEWEE WANTED TO GET AND YOU GOT IT. WHAT ELSE DID YOU LEARN FROM IT? SONALI: SOME THINGS ARE IMPORTANT. IF YOU LOOK AT THE WAY GPTC, THE GRAYSCALE BITCOIN TRUST, IS TRADING, WHEN I SAT HERE WITH YOU YESTERDAY, IT WAS AT A 15% DISCOUNT TO NET ASSET VALUE.
THAT HAS GOTTEN A LITTLE WIDER TODAY TO 21% AS I SIT HERE WITH YOU TODAY. BECAUSE THERE IS STILL UNCERTAINTY AROUND THE PATH FORWARD TO AN ETF FOR GPTC, MORE AROUND THE TIMELINE ESPECIALLY. ONE OF THE KEY CONCERNS HERE, AND YOU HEARD IT FROM MICHAEL SONNENSHEIN HIMSELF, THEY DON'T KNOW IF THEY HAVE TO REFILE TO CONVERT TO AN ETF IN THE WAKE OF THIS PROCESS. THERE IS A TIMELINE HERE. WE DO NOT KNOW WHETHER THE SEC WILL FIGHT THE DECISION AND MICHAEL HIMSELF SAID THIS IS DAY ONE OF A 45 DAY PROCESS IN WHICH THE SEC CAN REQUEST POTENTIALLY A HEARING. THE RULING YESTERDAY WAS THREE TO ZERO SO THIS IS NOT QUITE LIKELY PER SE, DEATHLY GOING AGAINST WHAT THE COURT HAS SAID UNANIMOUSLY YESTERDAY.
HOWEVER, IT COULD CERTAINLY HAPPEN AND WOULD HOLD THINGS UP FURTHER. CAROLINE: THESE THINGS ARE NEVER QUICK. SONALI BASAK IS ALWAYS QUICK ON THE INFORMATION. COMING UP, APPLE WANTS YOU TO SAVE THE DAY, SEPTEMBER 12 IS WHEN IT IS LAUNCHING ITS BIGGEST PRODUCT UPGRADE WE UNDERSTAND ARE THE IPHONE 15 AND NEXT LINE OF SMART WATCHES. HUAWEI, CHINA, ALSO TAKING THE SMARTPHONE MARKET BY STORM.
MORE ON THE STORIES NEXT, THIS IS BLOOMBERG. ♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW. NASDAQ 100 IT'S THE FAVORITE GO TO TECH INDEX. OUTPERFORMING, A .6%, RISING FOR A FOURTH STRAIGHT SESSION. THE FIRST TIME WE'VE HAD FOUR STRAIGHT DAYS OF GAINS SINCE MID JULY. WE TALKED ABOUT THE GDP FIGURE,
CAME IN AT AND ANALYZED PACE, BELOW WHAT THE GOVERNMENT HAD STEERED US TOWARDS. GETTING SUPPORT FOR EQUITY MARKETS, ONE NAME IS OUTPERFORMING ON THE MEGA CAP SIDE, APPLE UP 1.8 PERCENT. WE KNOW THE STORY, I KNOW WHAT I'M DOING IN A COUPLE WEEKS TIME. THIS ONE IS EXCITING.
CAROLINE: IT WAS TOWING FOUR HOURS AGO YOU GOT THE INVITE, THE WANDERLUST. I WONDER WHAT THAT MEANS. THAT IS WHAT APPLE IS CALLING ITS NEXT EVENT. WHERE THE COMPANY WILL UNVEIL THE IPHONE 15 LIVE, THE NEXT GENERATIONS SMART WATCHES, AND MARK GURMAN ALSO -- ALWAYS KNOWS THE NEWS AHEAD OF TIME.
WANDERLUST, WHAT YOU THINK THEY ARE HINTING OUT THERE? MARK: I DON'T NECESSARILY THINK THE NAME OF THE EVENT, WANDERLUST, IS HINTING AT MUCH BUT IF YOU LOOK AT THE APPLE LOGO, IN THE INVITATION, THE COLORS IN THERE WILL BE THE COLORS OF THE NEXT-GENERATION PRO PHONES. THERE WILL BE A NAVY BLUE, THERE WILL BE A NEW VERSION OF THE SPACE BLACK, THERE WILL BE A NEW GRAY, CLOSER TO THE LOOK OF NATURAL TITANIUM, THE MATERIAL THEY ARE SWITCHING TO FOR THE IPHONE 15 PRO AND PROMAX, AND THEN THERE IS ALSO GOING TO BE ANOTHER NEW COLOR, SILVER, A NEW VERSION OF SILVER AND WHITE. SO THOSE COLORS ARE HINTED AT IN THE LOGO AND THEN YOU SEE SORT OF A POWDERY SUBSTANCE, A POWDERED METAL SUBSTANCE. I WILL HAVE MORE ON THAT SOON
BUT DEFTLY THIS IS GOING TO BE AROUND THREE PRODUCTS, THE IPHONE, APPLE WATCH, AND AIRPODS , HIGH-END AND LOW-END AIRPODS, APPLE WATCH SERIES NINE AND SECOND-GENERATION APPLE WATCH ULTRA AND UPDATED AIRPODS -- AIRPODS PRO USB C. ED: THE COLOR IS IMPORTANT, MY SMARTPHONE OF CHOICE IS BLUE FOR CHELSEA FOOTBALL CLUB. ARE WE GOING TO GET ANY HARDWARE UPDATES IN THE 15 RELATIVE TO THE 14? YOU TALK ABOUT THIS A LOT IN REPORTING THAT GENERATION TO GENERATION, SOMETIMES THEY HAVE VERY SLIGHT CHANGES. MARK: THERE WILL BE MAJOR CHANGES ACROSS ALL FOUR MODELS THIS YEAR. THE 14 WAS A PRETTY SMALL UPDATE ON THE NON-PRO SIDE. THE 15, REGULAR 15 PLUS, THOSE ARE GOING TO GET A 40 MEGAPIXEL BACK CAMERA, THE NEW CHIP AND DYNAMIC ISLAND.
THE 15 PRO AND PROMAX WILL GET THE NEW TITANIUM FRAME I MENTIONED, THE FIRST THREE NANOMETER PROCESSOR OR NANO METER CHIP, ORDERS ARE ON THE DISPLAY CLOSE SEEING -- CLOSE TO 1.5 MILLIMETERS AND DISPLAY IN ANY MASS-PRODUCED SMARTPHONE. THE BIGGEST PHONE GETTING A NEW CAMERA, CALLED A PERISCOPE CAMERA, THE TECHNICAL TERM, ALLOW YOU TO DO DEEPER OPTICAL ZOOMS ERIE RIGHT NOW YOU CAN ZOOM IN AT THE RATE OF THREE X AND THIS WILL DOUBLE TO SIX X WITHOUT NEEDING TO USE DIGITAL ZOOM SO YOU WILL RETAIN THE CLARITY BECAUSE IT USES THE ACTUAL HARDWARE LENS FOR THE ZOOM RATHER THAN SOFTWARE. CAROLINE: AND THE EU HAVING ITS WAY WITH CHARGING? MARK: YES. THAT'S EXACTLY WHAT I WAS GOING
TO SAY, THE BIG FUSS WILL BE THIS USB SEAPORT ERIE THIS WILL BE THE SECOND TIME IN THE HISTORY OF THE IPHONE THEY CHANGED THE CHARGING POINT -- PORT. IN 2012 THE MOVE FROM THE IPOD CONNECTOR TO LIGHTNING CONNECTOR AND THIS TIME THEY MOVE TO USB C, SLIGHTLY LARGER THAN THE CONNECTOR THEY USE TODAY, REVERSIBLE, BUT ON THE PRO PHONES IT WILL ALLOW YOU TO DO FAST DATA TRANSFERS OVER THE CABLE. IF YOU ARE TAKING HIGH-RESOLUTION VIDEO, YOU WILL GET THE BIG TRANSFER SPEEDS THERE. THE DOWNSIDE IS IF YOU HAVE BEEN USING LIGHTNING CONNECTORS TO CHARGER IPHONE THE LAST DECADE, YOU WILL NEED A NEW CABLE. THE NEW CABLE WILL COME IN THE
BOX, THE BAD NEWS IS YOU MAY GET TO BUY A NEW CHARGING ADAPTER THAT GOES INTO THE WALL BECAUSE YOU'RE MOVING FROM USB A OR USB TWO AS OTHERS CALL IT, TO USB C, A DIFFERENT SIZED CONNECTOR SO SOME PEOPLE MAY NEED TO MAKE THAT CHANGE. ED: APPLE UP 1.9%, SEPTEMBER 12, THE DATA WATCH OUT FOR. THANKS TO MARK GURMAN. APPLE IS NOT THE ONLY COMPANY BREATHING NEW LIFE INTO THE SMARTPHONE MARKET. HUAWEI IS UNVEILING A SLIM BEZEL MATE TO 60 PRO. SPARKING HOPES CHINA TECH FIRMS ARE ABLE TO OVERCOME U.S.
SANCTIONS AND CURVES, GIVING LIFE TO THE DOMESTIC SMARTPHONE MARKET. IAN KING IS WITH ME ON SET. ABOUT WHAT WAS A STRANGE A SURPRISE OVERNIGHT I WILL SAY TWO THINGS BEFORE I HANDED TO YOU, THE DETAILS OF THIS PHONE WERE NOT REGISTERED WITH THE CHINESE REGULATOR, WHICH IS UNUSUAL, BUT WHAT HAPPENED WAS LOADS OF LOCAL MEDIA OUTLETS AND FANS IN CHINA DID TEAR DOWNS, THEY TORE THE THING APART AND THAT TAKES US TO THE PROCESS -- PROCESSOR, WHICH THEY SAY WAS ETCHED WITH FIVE NANOMETER NODES. WHY IS THAT SURPRISING? >> WE NEED TO UNDERSTAND THAT THIS IS SPECULATION AT THIS POINT. THE BOTTOM LINE IS IF THEY HAVE THAT KIND OF TECHNOLOGY IN THEIR SEMICONDUCTORS, IT IS ALL MOST IMPOSSIBLE TO HAVE DONE THAT WITHOUT CIRCUMVENTING DIRECT U.S. TRADE RESTRICTIONS ON SUPPLYING THAT COMPANY WITH TECHNOLOGY. SOMETHING IS GOING ON HERE IF
ALL OF THE SPECULATIONS ARE CORRECT. AND I'M SURE THE U.S. GOVERNMENT IS TAKING A LONG LOOK AT THAT. COINCIDENCE THEY ANNOUNCED THIS PLAIN GINA RAIMONDO IS VISITING CHINA? YOU BE THE JUDGE. CAROLINE: IT'S INTERESTING BECAUSE IT WAS A SUBTLE ANNOUNCEMENT AND IT HAS MAINLY TAKEN OFF ON WAYMO AND PEOPLE TRYING TO PIECE TOGETHER THE PIECES HERE AND WE UNDERSTOOD A POTENTIALLY -- AND POTENTIALLY THOUGHT STOCKPILING COULD GO ON WITH TSMC CHIPS. COULD IT BE THAT? OR IS IT MORE IN LINE WITH A STORY YOU BROUGHT US LAST WEEK THAT THERE ARE THESE SHADOW SUPPLY CHAINS, SHADOW CHIP MANUFACTURERS GOING ON ACROSS CHINA BY HUAWEI. IAN:
THERE'S A LOT OF SPECULATION, A LOT OF PATHS GOING ON AND A LOT OF THAT WAS BASED UPON OUR REPORTING AND UNDERSTANDING OF WHAT IS GOING ON. THE BOTTOM LINE IS HUAWEI IS NOT A MAJOR SMARTPHONE MAKER, NOT EVEN CLOSE. THEY GOT RID OF THEIR SMARTPHONE DIVISION BECAUSE OF THE WEIGHT OF SANCTIONS SO WHAT IS GOING ON HERE IS A SYMBOLIC OR CONCENTRATED EFFORT TO GET TECHNOLOGY TO SHOW CHINA, WE ARE NOT OUT OF THIS YET AND WE ARE NOT HURTING AS MUCH AS YOU THING AND MAYBE WE HAVE A FUTURE DOWN OUR OWN PATH. THAT IS HOW IT IS BEING INTERPRETED.
WHO IS DOING IT, HOW THEY ARE DOING IT, THAT IS SOMETHING EVERYBODY IS CHASING INCLUDING THOSE RIGHT NOW AND I COULD HAVE MAJOR IMPLICATIONS FOR THE RELATIONSHIP. ED: THE BASICS ARE HUAWEI HAS BEEN ON THE ENTITIES LIST SINCE 2019 DROP AIR AND THE REASON THE U.S. GOVERNMENT DID THAT IS ACCUSATIONS HUAWEI WAS HELPING THE CHINESE MILITARY WITH TECHNOLOGY. BUT WHAT WAS NOTABLE OVERNIGHT IS LOTS OF CHINESE SUPPLIERS SAW THEIR STOCKS JUMP. WHAT DID YOU MAKE OF THAT? IS THE INFERENCE WHICH BLOOMBERG HAS NOT BEEN ABLE TO VERIFY MANY OF THESE MEDIA REPORTS, BUT IT IS -- IS IT CHINA COULD STAND ON THEIR FEET AND THE 5G MARKET WHICH IT HAS NOT DONE ON ITS OWN? IAN: THE IDEA WAS IF THEY WERE PUSHED IN THE CORNER -- INTO THE CORNER, THEY WOULD DEVELOP THEIR OWN DATA TECHNOLOGIES AND NOT BE DEPENDENT ON THE WEST OR NEED TO INTERACT WITH THE WEST BECAUSE THEY HAVE A HUGE MARKET AND THIS DEVELOPMENT, EVEN THOUGH IT IS RELATIVELY SMALL AND PROBABLY ON A RELATIVELY SMALL NUMBER OF DEVICES, YOU HAVE TO REMEMBER FROM A TECHNOLOGY -- TECHNOLOGY PERSPECTIVE, YOU CAN MAKE A FEW CHIPS VERY HIGH-QUALITY, VERY LOW NODES IN TERMS OF MANUFACTURING. AS PRODUCING THEM AS AN
ENTIRELY DIFFERENT THING. THE MILITARY DOES NOT NEED HUNDREDS OF MILLIONS OF THESE THINGS. ALL KINDS OF ALARM BELLS RINGING AROUND. CAROLINE: IAN KING, SUCH IN-DEPTH REPORTING, THANK YOU AS WE PEEL BACK THE ONION OF WHAT IS HAPPENING OVER THERE WITH HUAWEI. MEANWHILE, GOING OUTSIDE THE WORLD OF TECH FOR A MOMENT, WE WANT TO QUICKLY CHECK IN ON STOCKS THAT ARE REALLY MOVING.
STOCKS ARE SURGING AFTER THE U.S. TO PARMA IN OF HEALTH AND HUMAN SERVICES SENT A LETTER TO THE DRUG ENFORCEMENT AGENCY URGING THEM TO LOOSEN RULES WHEN IT COMES TO CANNABIS. A LOT OF THE STOCKS ARE GETTING STOPPED ON VOLATILITY, 18% ON TILRAY, ETF'S ARE REALLY GOING HIGHER. THIS IS A FOCUS LAST OCTOBER, BIDEN ROLLED OUT INITIATIVES FOCUS ON MARIJUANA INCLUDING THE PRIOR FEDERAL OFFENSES, SO THIS LOOKS LIKE THEY COULD BE TAKING ANOTHER STEP IN THAT DIRECTION. COMING UP, A COMPANY IN THE PROCESS OF ACQUIRING SEMICONDUCTORS. WE WILL BE JOINED BY THEIR CEO TO DISCUSS THE COMPANY'S PLANS RIGHT NOW IN CALIFORNIA. ED:
SPEAKING OF CHIPS, LOOKING AT SHARES OF NVIDIA, THE MARKET SLOWED DOWN AND HAS NOT STOPPED ANALYSTS FROM RATCHETING UP THEIR SHARE PRICE TARGETS, SECURITIES AS A TARGET OF $1100 PER SHARE WHICH IF NVIDIA HAD THAT, WOULD GIVE THE COMPANY A MARKET VALUE OF MORE THAN $2.7 TRILLION. BY THE WAY, APPLE'S 2.9 TRILLION VALUATION, THEY WOULD BECOME TRILLIONISH RIVALS. THIS IS BLOOMBERG TECHNOLOGY.
♪ ED: GLOBAL GIANT BAUSCH WILL CLOSE THE ACQUISITION OF U.S. CHIPMAKER SEMICONDUCTORS IN THE NEXT WEEK. THE WORLD'S BIGGEST AUTO PARTS SUPPLIER PLANS TO INVEST MORE THAN AN .5 BILLION DOLLARS IN
ITS CALIFORNIA FOUNDRY, EXPANDING THE GERMAN COMPANY'S GLOBAL BET ON CHIPS. THE CHAIRMAN OF BAUSCH IS BOARD -- BAUSCH -- BOSCH'S BOARD JOINS US NOW. THE BIG QUESTION IS, HOW QUICKLY YOU OPERATIONALIZE THIS AND GET THE SILICA AND CAR BUYING INTO YOUR SUPPLY CHAIN.
STEFAN: THAT IS THE STORY OF A BIT MORE WORK BECAUSE WE HAVE BOUGHT A GREAT ASSET WITH A GREAT BASE AND ABOUT 250 SPECIALISTS. THIS IS THE MOST IMPORTANT THING TO IT BUT THERE'S A LOT OF CONSTRUCTION TO HAPPEN. WE HAVE TO UPGRADE THIS SITE, BRING NEW MACHINES, NEW EQUIPMENT, AND THE PROCESS CHANGE WHICH WE DEVELOP AS WE PLACE HERE. IT WILL TAKE YEARS BUT WE WILL
GET IT SPEEDED UP AS MUCH AS WE CAN SEW TWO TO THREE YEARS WE WILL SEE RESULTS. ED: WE LEARN FROM THE PANDEMIC ERA IT IS TRICKY TO PLAN CAPACITY ON THE FOUNDRY SIDE AND LOTS OF PEOPLE GOT IT WRONG. YOU ALREADY HAVE TWO FADS IN EUROPE, YOU ADD THIS THIRD IN CALIFORNIA, WILL YOU CONTINUE BUYING UP THESE SMALLER FAB OPERATIONS BASED ON YOUR CAPACITY FORECAST? STEFAN: RIGHT NOW WITH THIS IS SAID WE ARE WORKING ON EXTENDING OUR [INDISCERNIBLE] AND THE PARTNERSHIP WE JUST JOINED WITH TSMC ON AND WE HAVE TSI IN THE STATES, THAT IS A GOOD PORTFOLIO AND THAT'S A WHOLE BUNCH OF WORKLOAD FOR US THAT WE HAVE TO PULL THROUGH. DON'T EXCITE TOO MANY FURTHER STEPS WHEN WE GO AHEAD BUT THIS WOULD BE VERY BUSY FOR US IN THE NEXT YEARS. CAROLINE:
SILICA AND CARBIDE, -- SILICON CARBIDE, WHAT IS THE MARKET RIGHT NOW? THERE IS REPORTS TESLA IS TRYING TO DOWNSHIFT THE AMOUNT USES WITHIN ITS VEHICLES. IS THAT A CONCERN IN ANY WAY? WOULD YOU THINK THE ULTIMATE MARKET IS THERE AND HUGE? STEFAN: SILICON CARBON HAS GREAT BENEFITS FOR THE VEHICLES. YOU CAN BETTER CHARGE THE VEHICLE, REDUCE LOSSES OF CHARGING BY 50%, YOU CAN EXTEND THE LENGTH OF THE RUN OF THE VEHICLE BY 6% SO YOU CAN RUN THE VEHICLE LONGER, REDUCE THE BATTERY SIZE SO IT ESPECIALLY FOR MORE SENSITIVE VEHICLES, THIS SORT OF TECHNOLOGY, THE QUESTION IS IT HAS NOT DEPLOYED MASSIVELY IN ALL VEHICLES BECAUSE THE CAPACITY IS NOT THERE. IT IS RANDOM AND THE MESSAGES FROM MULTIPLE PLAYERS. IT WILL HAVE A MASSIVE IMPACT ON THE ELECTRIFICATION. ELECTRIFICATION ITSELF IS RAMPING UP SO I WOULD STILL SEE IT AS A GREAT INGREDIENT FOR ALL APPLICATIONS, NOT JUST CARS.
CAROLINE: INTERESTINGLY, NOT JUST CARS BUT THE OTHER PRODUCTS IN WHICH THIS WILL BE USEFUL, WHAT ABOUT THE ULTIMATE CONSUMER DEMAND AS YOU SAID? WE HAD FORT PRO ON AND TED REALLY TALKING US THROUGH HOW HE STILL SEES REALLY DEMAND NOT BEING THE PROBLEM, IT IS MORE SUPPLY-SIDE. YOU FEEL WITH THE U.S. GDP DATA TODAY, ARE YOU CONFIDENT IN DEMAND FOR THESE PRODUCT RIGHT NOW? STEFAN: FOR A PRODUCT LIKE SILICONE CARBIDE, WE HAVE TO GET LONGER VIEW. THE CURRENT SITUATION WHERE WE HAVE RISK IN THE DEMAND-SIDE IS CLEAR. THAT IS GLOBALLY AND WE SEE
INFLATION WHICH HAS BEEN REPORTED IN GERMANY AT 6.1% IN CONTRAST TO THE U.S.. THE FIGHT AGAINST INFLATION WILL GO ON AND THAT WILL SOFTEN DEMAND IN MANY PRODUCTS BUT FOR THE LONG RUN, THREE TO FIVE YEARS, DEMAND, ESPECIALLY FOR ELECTRIFIED VEHICLES, WILL GROW MASSIVELY AND THAT IS MORE PROBLEM TO HAVE THE SUPPLY READY FOR THAT DEMAND IN THE FUTURE. ED: BAUSCH IS A TRULY GLOBAL
COMPANY. THANK YOU FOR MENTIONING THE EUROPEAN ECONOMIC DATA AS WELL AS THE U.S. BUT CHINA REALLY INTERESTS CAROLINE AND I, A DAILY DISCUSSION, YOU GREW REVENUES 3% IN 2022. WHAT DOES 2023 LOOK LIKE BASED ON YOUR EXPERIENCE OF DOING BUSINESS IN THE CHINESE ECONOMY? STEFAN: THE CHINESE ECONOMY IS MUCH SOFTER IN THE RECOVERY AS WE EXPECTED IT. WE ALL SEE THAT PLUS WE ALSO
SEE CHINA'S CURRENCY AS MUCH SOFTER THAN WE ANTICIPATED. THAT IS A FACT AGAINST THE GLOBAL GROWTH AND EVEN IF CHINA WERE TO REPORT SOMETHING TO GDP GROWTH OF 5%, THAT IS STILL A RISK FOR THE GLOBAL ECONOMY GROWTH. CHINA CAN TO BEATING A THIRD OF THE GROWTH WAS THE STORY ON THE BEGINNING OF THE YEAR AND THAT MAY NOT BE HAPPENING THIS YEAR. BUT STILL, BOSCH STICKS TO ITS TARGETS, WE WANT TO GO -- GROW AT THREE TO 9%. ALSO BEFORE CURRENCY EFFECTS
BECAUSE WE DON'T KNOW THE CURRENCY EFFECTS PLAYING OUT. CAROLINE: CAN YOU JUST GO INTO THE GEOPOLITICAL SIDE AS WELL? THAT MUST BE A FASCINATING THING FOR YOU TO NAVIGATE, NOT JUST FX RISKS BUT SUPPLY CHAIN RISKS. HOW WILL YOU NAVIGATE THE HEADWINDS WHEN YOU SEE GINA RAIMONDO IN CHINA BUT THE HUAWEI ISSUE WE REPORTED ON? STEFAN: THE SUPPLY CHAIN RISK, ESPECIALLY IN SEMICONDUCTOR, IS MUCH LESS. ALSO OTHER SEMICONDUCTOR RISK, THOSE CURRENTLY BECAUSE OF THE SOFT DEMAND IN CHINA, THE FEWER EXPORT IN CHINA. THAT MEANS A LOT OF MATERIALS ARE EASIER, AVAILABLE FOR THE GLOBAL SUPPLY, WHICH IS LENT BEING -- LETTING TO THE CURRENCY DEMAND.
SHE IS NOT -- WE SHOULD NOT FEEL SAFE ABOUT THIS. IF CHINA COMES BACK IN A SPEEDIER PACE AND DEMAND IN THE U.S. GOES BACK UP AT A HIGHER PACE PLUS EUROPEAN DEMAND, WHICH IS VERY LOW, THEN WE COULD ALSO SEE AGAIN SUPPLY CHAIN ISSUES. WE ARE ALWAYS ON THE WATCH AND
ARE WORKING WITH OUR FACTORIES AND SOURCES AND PARTNER HEAVILY ON GETTING THE SUPPLY QUESTIONS INTO SHAPE FOR THE NEXT WAVE OF DEMAND. CAROLINE: FASCINATING, BIRD'S EYE PERSPECTIVE NOT ONLY THE CONSUMER BUT OF COURSE MORE BROADLY ON GEOPOLITICS AND GLOBAL ECONOMIES. BOSCH CEO, STEFAN HARTUNG, TAKING MA CALIFORNIA. THANK YOU. COMING UP, CALIFORNIA'S REIMAGINING CITIES. WHAT IS BEHIND THEIR NEVER ENDING CHASE OF SOME SORT OF UTOPIA NEXT. THIS IS "BLOOMBERG TECHNOLOGY."
♪ CAROLINE: MUSIC EVENT, GUESS AGAIN. INVESTMENT OFFEND. WELCOME TO INVEST FEST WHERE PEOPLE GATHER TO BOOST THEIR FINANCIAL LITERACY AND HAVE A GOOD TIME THANKS TO THE PLATFORM EARN YOUR LEISURE. YOUR HERE TO LEARN ABOUT BUILDING WEALTH, BUILDING A NET WORTH. WE CAME TO HEAR FROM THE WEALTHIEST BLACK AMERICANS FROM CULTURAL ICONS LIKE DIDION MONEY MANAGERS LIKE MIKE NOVA GRATZ AND CATHIE WOOD. WHAT ARE SOME OF THE BIGGEST MONEY MISTAKES A LOT OF THESE MILLIONAIRES AND BILLIONAIRES HAVE BEEN MAKING? >> MY BIGGEST MONEY MISTAKE WAS WAITING UNTIL I WAS 57 YEARS OLD TO START MY BUSINESS.
>> I WAS AN INVESTOR IN PELOTON AND PUT $300,000 IN AND AT ONE POINT IT WAS WORTH $7 MILLION AT A $1 BILLION VALUATION. MY FRIENDS WERE ON THE BOARD AND WAS LIKE IT IS SCALING, DON'T SELL, BUT I NEVER HAD A VENTURE WITH SO I WAS SO READY TO RING THE BELL AND I TOOK OFF AND STILL A GREAT INVESTMENT AND THAT 7 MILLION WOULD HAVE BEEN WORTH 200 MILLION AT THE HIGH. >> I BLOCKED THEM ALL OUT. [LAUGHTER] I ERASE THEM FROM MY HEAD.
>> NEVER HAPPENED. CAROLINE: HE MIGHT BE BLOCKING OUT SOME OF HIS MISTAKES BUT WHERE HE PUT HIS MONEY NOW, HIS REAL ESTATE, AND HE ALSO HAS AN E-COMMERCE PLATFORM PARTICULARLY FOCUSED ON BLACK CREATORS, BLACK COMPANIES. HE IS FOCUSING ON THE TECH HANDLE OF HIS FUTURE WEALTH AND SPEAKING ABOUT SOME OF THE BEST ADVICE THEY ARE GIVING AT THE MOMENT, MIKE NOVA GRETZ SAYING HAVE A STOPLOSS LIKE BASICALLY NO MATTER HOW CONVINCED YOU ARE OF A PARTICULAR TECHNOLOGY, MAKE SURE YOU HAVE SOME SORT OF WAY OF ENSURING YOU DON'T LOSE TOO MUCH MONEY IN THAT. ED: IT IS SO INTERESTING TO HEAR
THAT PELOTON STORY FROM NOVA GRETZ. WE SHOULD GET THAT OUT THERE MORE. WHAT WAS INTERESTING, NEW CITY FOR YOU, WAS A LIGHT BEING IN THAT PARTICULAR CITY, WHEN WE DON'T TALK ABOUT AS MUCH? CAROLINE: AND WE SHOULD TALK ABOUT IT MORE. THE AMOUNT OF CONTENT CREATION -- BECAUSE AMAZON STUDIOS ARE IN ATLANTA, THERE ARE ENORMOUS COMPANIES INVESTING IN TECHNOLOGY, COCA-COLA IS OVER THERE, BUT REALLY THIS IS -- ATLANTA, EVERYONE WAS SO WELL-DRESSED. IT WAS THE FUNNEST CONFERENCE I HAVE EVER BEEN TO, CITY, BEAUTIFUL, HOT, EVERYONE IS ON POINT ON HOW THEY'RE APPROACHING LIFE AND DELIVERING THEMSELVES. ED: CHECK THE PIECE UP ON, AND X AS WELL. THINKING THINGS IN WHAT VENTURE
CAPITALISTS DO. IT IS NOT AS EASY TO DO THAT WITHIN EXISTING CITIES. TODAY, WE TAKE A LOOK AT THE TREND OF VC'S WANTING TO BUILD THE ULTIMATE TECH DREAM, BETTER CITIES. SARAH MCBRIDE HERE WITH THE TECH DAILY NEWS. THIS IS AN INTERESTING ONE
BECAUSE SAN FRANCISCO OFTEN THINGS OF ITSELF IN THAT WAY. WE ARE ATTACK, WE HAVE BUILT THIS AND WE HAVE A LOT OF PROBLEMS. GIVE US THE OVERVIEW. >> EVERY COUPLE YEARS, SOMEBODY IN TECH DECIDES THEY CAN BUILD A BETTER CITY, THEY GIVE IT A GO AND IT KIND OF FIZZLES OUT. THEN SOME DEALS COMES ALONG, SEEMINGLY UNAWARE OF THE PREVIOUS EFFORTS AND TRIES IT AGAIN. THIS SEEMS TO BE WHAT IS HAPPENING RIGHT NOW WITH THESE EFFORTS IN SOLANO COUNTY NORTHEAST OF SAN FRANCISCO TO BUILD A BETTER CITY. CAROLINE: WHO ARE THE NAMES THAT WE KNOW BEHIND THIS? SARAH: BIG VC NAMES LIKE MEG MORETZ WHO IS ONE OF THE VC'S FROM SEQUOIA CAPITAL, LORRAINE POWELL JOBS WHO HAS EMERSON COLLECTIVE, SO SMART PEOPLE HAVE ACCOMPLISHED A LOT AND HAVE A TON OF MONEY, SO IF ANYBODY CAN DO IT, THEY CAN, BUT MANY PEOPLE JUST LIKE THEM HAVE THOUGHT THE SAME THING PREVIOUSLY AND UNFORTUNATELY FAILED. CAROLINE:
MILTON KEANE'S EVEN GETS A SHOUT OUT IN YOUR STORY, ABSOLUTELY LOVE IT. A SARAH MCBRIDE, THINK YOU. THAT IS ALL FOR THIS ADDITIONAL "BLOOMBERG TECHNOLOGY." ED: PLEASE RECAP ON THE PODCAST, I HEART, SPOTIFY, AND BLOOMBERG
2023-09-01 21:30
