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>> FROM THE HEART OF WHERE AND POWER COLLIDE. THIS IS A BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: I AM CAROLINE HYDE. ED: I'M ED LUDLOW. CAROLINE: WE GET A READ ON THE IPO MARKET, SHIEN FILES FOR U.S. LISTING, READ IT TEST THE WATER FOR A PUBLIC OFFERING. MOREHEAD. ED: THE STATE OF THE CONSUMER ON THIS TROUBLE TUESDAY.
AMAZON REPORTS NEW RECORDS OR BLACK FRIDAY AND CYBER MONDAY SALES. CAROLINE: TESLA PRODUCTION NIGHTMARE, WHY THE CYBER TALK IS TROUBLESOME FOR TESLA AHEAD OF THE DELIVERY EVENT THIS WEEK. WE DISCUSS THAT IN SO MUCH MORE THIS HOUR. WE SHOULD TURN TO THE GREEN ON THE DAY OF TECH STOCKS. THE FED SPEAK HAD ONE OF THE QUIET PERIODS, ENTHUSIASM TO THINK THAT THE FEDERAL RESERVE IS DONE WITH HIKING. WE HAVE GONE FROM THE RIGHT TO
THE GREEN. WE ARE LOOKING AT THE SEVEN YEAR YIELD. U.S. TREASURIES, YIELDS PULLING BACK SIGNIFICANTLY ON THE MORE DOVISH AND INCLINATION WE HAVE HEARD FROM THE BED. A BLOOMBERG DOLLAR INDEX WEAKENS. MAYBE THAT IS WHAT IS DRIVING BITCOIN ON THE OUTSIDE. HELLO TO OUR RISK ASSET CHOICE. DRIVING UP 2.4%.
WE ARE STILL TRADING AT ALMOST $38,000 LEVEL. IT HAS BEEN AROUND IN A CONVERSATION. WHAT ARE YOU LOOKING AT ON THE MICRO WHEN IT COMES TO THE TECH STOCKS? ED: MICRON, THE MEMORY CHIPMAKER UPDATED ITS GUIDANCE FOR THE CURRENT FISCAL PERIOD SLIGHTLY FOR REVENUES. WE KNEW THE CHIP ENVIRONMENT HAS IMPROVED FOR MEMORY CHIPS. MIKE REPORTS FULL EARNINGS ON THE 20TH OF DECEMBER. THIS IS AN EARLY UPDATE. THE STOCK IS DOWN 2.5%. SINCE ABOUT A MONTH AGO.
THERE IS A BIG RETAIL THEME IN TODAY'S SHOW CONTINUING FROM CYBER MONDAY. IT IS ALSO GLOBAL. LOOKING AT U.S. LISTED SHARES OF THE CHINESE PARENT OF TEMU DOUBLING REVENUE IN THIS QUARTER. IT TOOK MARKET SHARE FROM THE LIKES OF SHEIN WHICH WILL GET INTO. ALSO AMAZON AND OTHER KEY MARKETS. WE HAD THE NUMBER FROM CYBER MONDAY, 12 POINT MILLION DOLLARS SPENT IN THE U.S.. THESE ARE SOME OF THE WINNERS AND LOSERS AFTER A MASSIVE JUMP MONDAY, CONTINUES TO HAVE MOMENTUM? WHY, BY NOW, PAY LATER WAS A BIG PART OF THE SPENDING THAT TOOK PLACE IN THE LAST FEW DAYS OR SO.
SHOPIFY AND AMAZON RELEASED VALUE ON THE PLATFORMS. CAROLINE: LET US GO TO COMPANIES THAT ARE LOOKING TO GET INTO THE WORLD OF PUBLICLY TRADED HIGHS AND LOWS. LET US TALK ABOUT SHEIN THAT HAS FILED FOR AN IPO. REDDIT HOLDING TALKS. LET US GET THE STRENGTH OR LACK THEREOF OF AN IPO MARKET AS WE LOOK TOWARDS 2024. A WHOLE LOT OF NEWS.
WHAT THAT PARTICULAR BUSINESS. START ON SHEIN. WHAT ARE WE THINKING APPETITE WOULD BE LIKE FOR A COMPANY THAT IS RIVALING H&M AND ZARA? >> THEY ARE HOPING TO GO SOMETIME NEXT YEAR. WE THINK THEY COULD BE VALUED AS MUCH AS $90 BILLION. THEY HAVE LOW PRICE POINTS WHICH HAS BEEN POPULAR WITH U.S. CONSUMERS. AND GLOBAL CONSUMERS. THEY WERE CHINESE FOUNDED BUT THEY MOVED THEIR HEADQUARTERS TO SINGAPORE.
THIS WOULD NOT BE A CHINESE COMPANY LISTING IN THE U.S.. THERE HAS BEEN A LITTLE -- A LOT OF YOUR POLITICAL TENSIONS THERE. SINGAPORE MAKES IT MORE AMENABLE. ED: REDDIT IS AN INTERESTING ONE AS WELL. I SPENT THE MORNING READING ABOUT REDDIT'S HISTORY. THEY STARTED THIS IPO DISCUSSION IN JANUARY AT 2022. TWO YEARS AGO.
WHAT IS THE LATEST ON A REDDIT LISTING? >> THEY WANTED TO GO PUBLIC DURING THE LAST IPO BOOM BUT THEY JUST MISSED IT. THEY HAVE BEEN EAGERLY WAITING FOR THE IPO WINDOW TO REOPEN. THEY WERE NOT IN THE FIRST CROP OF COMPANIES TO GO PUBLIC THIS FALL. WE SAW INSTACART AND ALL OF THAT. SOURCES TELL US THAT THEY ARE GETTING READY, THEY ARE HOPING THAT AS SOON AS Q1 COULD GO PUBLIC. AS WE HAVE SEEN, THEY HAVE HAD A LOT OF FITS AND STARTS. ED:
A REPORTING OVERNIGHT FOR WHAT LOOKS LIKE A BUSY 2024. WE GO TO EQUITYZEN'S BRIANNE LYNCH. WE START WITH SHEIN. IT IS A KIND OF DISCOUNT CLOTHING RETAILER. SIDE-BY-SIDE, WHAT DO YOU MAKE ABOUT IT COMING TO MARKET? >> THIS IS WHEN WE HAVE HEARD IS RUMORED TO IPO FOR A WHILE NOW. IT LOOKS LIKE IT IS FINALLY MAKING THAT MOVE INTO THE PUBLIC MARKET. IT IS AN INTERESTING WANT TO WATCH, IT IS DIFFERENT THAN THE COHORT OF COMPANIES THAT WE SAW WENT PUBLIC THIS FALL. IT IS A COMPANY THAT HAS BEEN
GROWING REALLY RAPIDLY. THEY ACHIEVED $23 BILLION IN REVENUE LAST YEAR. THEY HAD THE MOST PROFITABLE HAVE OF THIS YEAR -- HALF OF THIS YEAR. THEY HAVE GROWN THEIR PARTICIPATION CENTERS. OUR MANUFACTURING CENTERS IN INDIA AND BRAZIL. THEY ARE SOLIDIFYING THEIR U.S. FOOTPRINT. THE U.S. IS THEIR LARGEST MARKET.
FORGING PARTNERSHIPS WITH FOREVER 21 AND OTHERS TO CREATE THAT BRICK-AND-MORTAR PRESENCE. THAT BEING SAID, THERE IS A LOT OF HAIR AROUND THIS ONE. CONCERNS ABOUT THEIR LABOR PRACTICES. THEIR TIES TO. CHINA AND OTHER ISSUES. IT IS INTERESTING AND IT WILL BE INTERESTING TO SEE HOW INVESTORS THINK ABOUT THIS ONE. THERE HAS NOT BEEN AN APPLES TO APPLES COMPARISON RECENTLY. CAROLINE: DISTINGUISHED FOR US THE DRIVING FORCE BEHIND SHEIN WANTING TO GO PUBLIC? REDDIT, FROM A REDDIT PERSPECTIVE THIS IS A LIQUIDITY EVENT THAT DRIVES THE DESIRE TO GO PUBLIC.
>> REDDIT WAS FOUNDED IN 2005, THIS IS AN 18-YEAR-OLD COMPANY, LOOK AT SHEIN THEY ARE 11 YEARS OLD, THEY ARE NOT YOUNG EITHER. WHEN YOU LOOK THERE OVER 1200 OF THESE UNICORN COMPANIES. VALUED AT OVER 3.8 TRILLION, A LOT OF VALUE THAT HAS BEEN TIED UP IN THE PRIVATE MARKETS. WHILE PLATFORMS LIKE EQUITYZEN ENABLE INVESTORS TO ACCESS THE MARKET AND SOME SHAREHOLDERS TO ACHIEVE THE LIQUIDITY, THERE IS NOT A WIDE SCALE LIQUIDITY. THESE COMPANIES ARE FEELING
INTENSE PRESSURE FROM THEIR INVESTORS AND EARLY EMPLOYEES TO GET SOME LIQUIDITY AND VENTURE CAPITALISTS ARE NOT LOOKING TO PUMP MORE MONEY INTO THESE LATE STAGE COMPANIES. THE IPO IS REALLY THE EXPECTED NEXT STEP. ED: THE REPORTED TARGET VALUATION FOR REDDIT IS $15 BILLION. THE LAST ACTIVE USER NUMBER ARE REPORTED AS BETWEEN 50 AND 60 MILLION DAILY ACTIVE USERS. WHICH OF THE GRAND SCHEME OF THINGS DOES NOT SEEM LIKE THAT MANY. YOU TALKED ABOUT THE MOTIVATION BEING LIQUIDITY, BUT WHAT ABOUT THE DEMAND SIDE OF THE EQUATION? IS ANYBODY INTERESTED IN A PUBLICLY TRADED REDDIT? >> REDDIT IS AN INTERESTING ONE TO WATCH BECAUSE THEY ARE SO ENTWINED IN THE WHOLE RETAIL INVESTOR MARKET.
THEY WERE IN THE NEWS A LOT AT THE TIME OF THE MEMESTOCK ERA. THEIR SUBREDDIT REALLY DROVE A LOT OF THAT RETAIL MOMENTUM. THERE IS A HIGH THERE AND I THINK THAT THERE ARE SOME SUPER FAN USERS WHO WILL BE EAGERLY WATCHING AND LOOKING TO PARTICIPATE IN THIS IPO. WHILE THEY ARE ONE OF THE SMALLER SOCIAL PLATFORMS, THEY DO HAVE A LOYAL USER BASE.
ANOTHER THING TO NOTE IS THAT THEY ARE GROWING FROM A PROFITABILITY PERSPECTIVE. IT IS REPORTED THAT THEIR ADVERTISING REVENUE GREW 31% IN 2022. THIS IS HISTORICALLY A SMALL PART OF THEIR BUSINESS. AN OPPORTUNITY FOR THEM TO GROW AND EVENTUALLY PROFITABILITY, IT WILL BE INTERESTING TO SEE IF THEY ARE PROFITABLE AT THE TIME OF CONSIDERING AN IPO. THAT SEEMS TO BE A TABLE STAY FOR ANY COMPANY TO CONSIDER NOW. CAROLINE: IN MANY WAYS, AN IPO IS OFFERING AN MARKETING EVENT.
GETTING YOUR NAME OUT TO A RETAIL COMMUNITY. ONE PARTICULAR INTERVIEW WE HAD I MADE THE WHOLE DEBACLE AROUND THE OUSTING AND RETURN OF SAM ALTMAN TO OPENAI, WAS ONE VERY KEY VC SAYING THIS WOULD NOT BE A BAD TIME TO ACTUALLY IPO OPENAI. TAKE A LISTEN. >> I THINK THAT THEY SHOULD ONCE THEY GET THIS ALL SORTED OUT AT FILED TO GO PUBLIC. THE DEMAND AND THE SUPPORT FOR SAM IS ABSOLUTELY UNPRECEDENTED AND TECH COMPANIES, AN UNINTENDED PRE-IPO ROADSHOW SHOW THE OVERWHELMING DEMAND. CAROLINE: THAT WAS JOSH WOLF. YOU MAKE MARKET IN OPENAI. WHAT WOULD YOU SAY TO THE LEVEL
OF DEMAND THAT THERE IS FOR A COMPANY LIKE THAT AMID THE TURMOIL? >> WHEN WE LOOK AT THEM AMONGST OUR INVESTORS AND THE PRIVATE MARKERS, AI AND MACHINE LEARNING COMPANIES ARE BY FAR THE MOST INTIMATE -- AND DEMAND COMPANIES . NOT SURPRISING GIVEN THE BOOM IN THIS SPACE. THERE ARE CERTAINLY A LOT OF INVESTOR INTEREST FOR AI AND AI ADJACENT COMPANIES.
AN INTERESTING TAKE ON THAT ONE, I'M INTERESTED TO SEE KIND OF IF THAT STORY DEVELOPS AND WHAT COMES FROM THAT BECAUSE THERE IS A LOT OF DEMAND AND WHEN YOU LOOK AT THE AI MARKET MORE BROADLY, A LOT OF THESE COMPANIES ARE STILL QUITE YOUNG. LESS LIKELY TO BE IPO CANDIDATES. THAT DOES NOT MEAN THAT THERE COULD NOT BE MORE IN OPENAI AND THEY HAVE THE BRAND NAME. ED: DO YOU EXPECT AN ACTIVE ONE Q 2024? >> I DO. I THINK THINGS WILL PICK UP IN Q1 OF NEXT YEAR FROM A MACROECONOMIC PERSPECTIVE.
WE HAVE GOOD INDICATORS ON GROWTH AND STRONG GDP, INFLATION IS COOLING. FROM WHEN YOU LOOK AT THAT AND NOW IS AN OPPORTUNE TIME TO ENTER THE MARKET, THE IPO'S WE HAVE SEEN HAVE NOT DONE GREAT. I DO NOTHING THAT SHOULD BE A DETERRENT FOR THESE COMPANIES NEXT YEAR. ESPECIALLY THOSE WHO REALLY HAVE THE LIQUIDITY AND THE INVESTOR ACCESS NEEDED TO ENTER THE MARKETS. CAROLINE:
IT HAS BEEN BRILLIANT TALKING TO YOU. WE LOOK AT WHAT THE IPO PIPELINE HAS LOOKED LIKE OVER THE PAST FEW QUARTERS. COMING UP, THE TECH INDUSTRY, A PROFESSIONAL EVENT HAS BEEN PULLED. A DEVELOPERS CONFERENCE HAS
BEEN PUT ON ICE. CANCELED AFTER WE SEEMED TO FINDING OUT THE FIRM WAS FABRICATING FEMALE GUESTS. DETAILS, NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: AN UPCOMING DEVELOPERS CONFERENCE HAS BEEN CANCELED AFTER SEEMING TO LIST FAKE FEMALE SPEAKERS ON THE EVENT'S ROSTERS PROMPTING MICROSOFT AND OTHER FIRMS TO BACK OUT OF THE DEV PATERNITY CONFERENCE. -- DEVTERNITY CONFERENCE. TOTALLY EXTRAORDINARY, THE EVENT ORGANIZER CONFIRMING IT HAS BEEN CANCELED. AUTO GENERATING WOMEN IN PARTICULAR AS SPEAKERS? >> THAT IS THE STORY OF WHAT HE SAID HAPPENED.
THIS CONFERENCE, IT HAD A NUMBER OF SPEAKERS LISTED. THEN A NEWSLETTER RIDER CAME OUT ON X SAYING THAT ACTUALLY, THIS ONE PROFILE HAS BEEN AI GENERATED. ANOTHER ONE SEEMS VERY SUSPICIOUS. FROM THERE, PARTICIPANTS STARTED DROPPING OUT. THEY SAID IT WAS SUSPICIOUS. THE GENTLEMAN WHO ORGANIZED THE CONFERENCE SAID THAT ONE OF THE ACCOUNTS OR PROFILES HAD BEEN AUTO GENERATED. IT HAD BEEN A MISTAKE.
HE HAS SINCE REMOVED IT. THERE WAS A MORE PERVASIVE ISSUE OF CONFIRMING SPEAKERS WHO HAD SINCE DROPPED OUT. THEIR PROFILES WERE ON THE SCREEN INCLUDING TWO WOMEN WHO HAD SHIFTED FOR VARIOUS REASONS. AND SO, THERE WAS A LOT OF CONCERN THAT THERE WAS A PLOT TO MAKE THE ACCOUNT OR CONFERENCE LOOK MORE DIVERSE THAN IT REALLY WAS. ED:
THE ORGANIZER HAS CONFIRMED THAT THE EVENT HAS BEEN CANCELED. LET US GO BACK TO HIS RATIONALE. THIS WAS NOT ABOUT GIVING THE APPEARANCE OF A MORE DIVERSE CONFERENCE. IT WAS ACTUALLY THE CASE. IT WAS ABOUT A MISTAKE THAT HE HAD MADE? >> YES. THAT IS WHAT HE SAID WHAT HAPPENED. ONE OF THE BIGGER PERVASIVE ISSUES IS THAT WE KNOW THAT TECH IS STILL CHRONICALLY UNDERREPRESENTED WHEN IT COMES TO FEMALE DEVELOPERS. ON REPORTS OF THE TECH INDUSTRY IS STILL LESS THAN 30% FEMALE.
THERE HAS BEEN THIS BIG PUSH TO MAKE SURE THAT THESE CONFERENCES THAT EVERYTHING IS REALLY REPRESENTATIVE AND THEY HAVE A GOOD MIX. SOME OF THE SPEAKERS WHO WERE CONFIRMED AS ALLIES HAVE EVEN SAID I'M NOT GOING TO APPEAR AT A CONFERENCE UNLESS THERE IS A REALLY DECENT REPRESENTATIVE MIX. WHEN THEY PULLED OUT THEY SAID THAT THEY HAD BEEN DUPED. THAT THEIR CLAUSES DID NOT PASS MUSTER. ED: THANK YOU SO MUCH FOR THAT
REPORTING. COMING UP HERE ON BLOOMBERG TECHNOLOGY, WE TALK ABOUT THE STATE OF THE CONSUMER. AMAZON SAYS BLACK FRIDAY AND CYBER MONDAY BROKE RECORDS THIS YEAR. THIS IS BLOOMBERG TECHNOLOGY. ♪ >> THE CONSUMER HAS HAD REMARKABLE RESILIENCE BUT I THINK MOMENTUM WILL START TO SLOW.
ON AMAZON.COM, THE WHOLE FOODS MARKET, AMAZON FRESH, AMAZON GO AND WE WANT TO MAKE IT AS EASY AS POSSIBLE FOR CUSTOMERS TO GET ALL OF THAT IN ONE SHOPPING CART AND ONE GROCERY DELIVERY. THAT IS WHAT WE ARE WORKING TOWARDS. EXEMPLIFYING THAT RELATIONSHIP WHERE THEY CAN GET EVERYTHING FROM ONE SINGULAR RELATIONSHIP WHEN AMAZON IS HOW WE CAN SOLVE FOR CUSTOMERS IN THE GROCERY SPACE. CAROLINE:
YOU HAVE STORES OF COURSE AS WELL? BRINGING IN DONUTS AND COFFEE. SOME OF THE MORE TECHNOLOGY SAVVY WAYS WORKING OUT. HOW IS THAT SWEARING WITH THE EXPANSION OF WORK AND MORTAR? ARE YOU STILL ROLLING OUT MORE STORES? I THINK IT WAS 100 OF WHOLE FOOD AS YOU WANTED OVER THE NEXT FEW YEARS? >> WE WILL OPEN OUR WHOLE FOODS MARKET STORES WITH AMAZON FRESH.
AS YOU MENTIONED WE HAVE RELAUNCHED SEVERAL AMAZON FRESH STORES IN THE CHICAGO AREA AND LOS ANGELES AREA. IN THOSE STORES HAVE ADDED THOUSANDS OF PRODUCTS, LOWER PRICES ACROSS THOUSANDS OF PRODUCTS. WE ADDED NEW CHECK OUT OPTIONS AND USED JUST WALK OUT AND THEY CAN USE HELP CHECK OUT, GIVING THEM THE POWER TO CHOOSE HOW THEY WANT TO CHECK OUT. WE HAVE KRISPY KREME INTEGRATED
IN THE STORES WITH COFFEE AND DONUTS WHICH MAKES EVERYBODY'S SHOPPING TRIP A LOT MORE DELIGHTFUL. CUSTOMERS CAN GET AN ADDITIONAL 10% OFF OF THOSE STORES. WE ARE HAPPY WITH THE RESULTS WE ARE SEEING. WE WILL CONTINUE TO ITERATE AND INVENT ON BEHALF OF THE CUSTOMER. LOOK FOR THOSE RESULTS THAT TELL US WHERE WE WANT TO BE. CAROLINE: WHAT WAS INTERESTING WITH THE WHOLE REFRESH AND REFOCUS THAT WAS ANNOUNCED IN AUGUST WAS THE PRIME ACCOUNT HOLDERS.
AND NOT PRIME ACCOUNT HOLDERS. YOU SAID YOU CAN BUY WITH US EVEN IF YOU DO NOT HAVE A PRIME SUBSCRIPTION. HOW IS THAT GOING? HOW MANY NUMBERS OF PEOPLE ARE USING YOUR GROCERIES WHEN THEY ARE NOT HAVING A PRICE SUBSCRIPTION? >> WE WERE EXCITED. A FEW WEEKS AGO TO LAUNCH GROCERY DELIVERY FOR CUSTOMERS WITHOUT PRIME MEMBERSHIP FROM AMAZON FRESH. CUSTOMERS NEEDED TO BE A PRIME MEMBER IN ORDER TO ACCESS OUR GROCERY DELIVERY. WE WANTED TO DEMOCRATIZE OUR AFFORDABLE, FAST, RELIABLE DELIVERY FOR EVERYBODY. WHETHER YOU ARE A PRIME MEMBER
OR NOT. BEING A PIE MEMBER GIVES YOU AN ADDITIONAL 10% OF THOUSANDS OF ITEMS WHEN YOU SHOP IN-STORE AS WELL AS LOWER DELIVERY FEES FOR SHOPPING ONLINE. WE ARE PLEASED TO SEE THE NUMBER OF CUSTOMERS THAT ARE NOT BY MEMBERS SHOPPING OUR GROCERY DELIVERY SERVICE.
AS WE CONTINUE TO ROLL OUT, WE HOPE THAT WILL CONTINUE TO GROW. CAROLINE: THANK YOU SO MUCH. GIVING US THE INSIGHT ON AMAZON AND THE WORLD OF GROCERIES. MORE COMING UP. ED: A BIG FOCUS ON CHINA TECH, XI JINPING VISITING SHANGHAI TODAY. A LOT OF STORIES IN THE NEWS FLOW.
CAROLINE: I'LL BACK TO BLOOMBERG TECHNOLOGY. ED: THERE IS A LOT OF NEWS OUT OF CHINA OVERNIGHT, TECHNOLOGY DESTROYS THE IMPACTED MARKETS. ONE OF THE SHARES WE ARE LOOKING AT IS THE HONG KONG LISTED SHARES. CHINESE AI COMPANY. WE BRING YOU THE FULL DETAILS
LATER IN THE SHOW. SHORT-SELLERS REPORT AND INTO THE SHARES IN HONG KONG CLOSED ON ALMOST 5%. IN OTHER BIG NAME HAS CONTINUED INTO THE U.S. SESSION IS THE ADRS WITH THE U.S.
LISTED SHARES OF PINGDUODUO. THE OWNER OF TEMU. SMASHING EXPECTATIONS IN THE QUARTER. MORE THAN DOUBLING REVENUE YEAR ON YEAR, AND 25% AHEAD OF CONSENSUS. ALSO REALLY BEATING ON NET INCOME. THE STORY IS TIMO RETAKING SHOPPERS AND MARKET SHARE FROM THE LIKES OF SHEIN WHICH WE TALKED ABOUT. IT IS STANDING BY FOR U.S. LISTINGS AT THE START OF NEXT YEAR.
AMAZON AND EVIDENCE THEY ARE TAKING FROM AMAZON AND OTHER MARKETS AS WELL AND THE U.S. AVR'S ARE UP MORE THAN 19%. 18.5% IN THE SESSION. CAROLINE: I SHANGHAI-BASED COMPANY, LET US TALK ABOUT THAT. XI JINPING IS INDEED VISITING SHANGHAI FOR THE FIRST TIME SINCE COVID LOCK DOWN. MAKING STOPS AT THE FUTURES EXCHANGE AND A SEVERAL TECH GIANTS OPERATING IN THE MEGA-CITY TO TRY TO BOOST WANING SECTOR SENTIMENT. THAT IS ACCORDING TO LOCAL
MEDIA. JOINING US NOW IS THE MANAGING PARTNER, YOU HAD WARS WITH XI JINPING AT APEC. WHAT IS YOUR MESSAGE AND WHAT IS HIS MESSAGE BY GOING TO SHANGHAI? >> IS TRYING TO STRETCH HIS HANDS OUT, SHANGHAI WAS ONE OF THE MOST DAMAGED MAJOR CITIES BY THE DRACONIAN ZERO COVID LOCK DOWN. IT DID FACE THE SAME TYPE OF SHUTDOWN IN BEIJING. SHANGHAI WAS SEEN AS THE POSTER CHILD, IT HAD FALLEN AFOUL OF CENTRAL GOVERNMENT REGULATIONS AROUND MANAGING ZERO COVID. THEREFORE WAS SUBJECTED TO THE
MOST STRICT LOCKDOWNS. THE PTSD THAT LEFT FOR ITS RESIDENTS AND MOBILE INVESTORS WILL NOT SIMPLY BE FORGOTTEN. CAROLINE: THE PTSD THAT MANY AN INVESTOR HAS IS THE REGULATORY CRACKDOWN THAT XI JINPING HAD ON THE ATTACK INVESTMENT AREA. HOW DO YOU THINK INVESTORS ARE SEEING A POST-COVID AND POST REGULATORY ENFORCEMENT WORLD FOR CHINA? >> THE REGULARS TRY TO ASSUAGE FEARS THAT WILL BE ONGOING INTERFERENCE IN THE MARKETS. WHEN I HAD THE CHANCE TO
WHISPER A FEW THOUGHTS TO PRESIDENT XI JINPING I SAID PLEASE GET YOUR HAND OUT OF THE MARKETS. GET A BETTER PR TEAM. YOU NEED PEOPLE THAT CAN EXPLAIN WHY YOU ARE DOING WHAT YOU ARE DOING. EXPLAIN WELL AHEAD OF THE TIME IT TAKES PLACE. SOME PEOPLE DO NOT FEAR THE UNEXPECTED TWISTS AND TURNS AND UNPREDICTABILITY THAT WILL CAUSE THEM TO FLEE THE MARKET. IT IS THAT VOLATILITY WITH THE STRONG RETURNS ON THE WEST SIDE THAT CAUSES GLOBAL INVESTORS TO SAY WHY IS CHINA WORTH THE RISK IF I CAN GO AND PUT MY MONEY IN THE U.S. WITH THESE KINDS OF RETURNS? ED: SHANGHAI AND HIS HIGH-TECH PARKS ARE THE SITE OF AI DEVELOPMENT. THE SITE OF CHIP DESIGN FIRMS.
TO SOME EXTENT, GAMING. WE POSTED THIS QUESTION ABOUT THE REGULATORY CRACKDOWN ON GAMING WHERE WE STAND NOW. HAVE A LISTEN TO THIS. >> I THINK MOST OF THE REGULATORY CHANGES ARE BEHIND US NOW. PEOPLE HAVE SOME STRONGER
FOOTING TO MOVE FORWARD. THERE ARE STILL HUGE AMOUNT OF MONEY TO BE MADE IN THE CHINESE GAMES MARKET. ED: THAT WAS A PARTNER AT NICO PARTNERS. SHE WAS TALKING IN THE CONTEXT OF GAMING. BROADLY ACROSS THE TECHNOLOGY SECTOR. IS SHE NOW CARRYING OUT A SUPPORTED POLICY? OR IS STILL HAVING SOME HEAVY REGULATORY OVERLOOK ON THOSE SECTORS. MANY OF WHICH ARE BASED IN
SHANGHAI? >> I THINK REGULATORY INTERVENTION IS OVER. IT SQUARES WITH THE TYPE OF TONE THAT HE TOOK DURING HIS SPEECHES AT APEC. PARTICULARLY THE ONE WE WERE ATTENDING ON WEDNESDAY NIGHT WHERE HE WAS REALLY ALL OF BRANCH OUTCOME OF THE STATE OF THE CHINESE ECONOMY IS DIRE. THE LAST THING THEY NEED IS FURTHER SHOCKS AND FURTHER INTERVENTIONS AND IN THE TECHNOLOGY GIANTS, THEY ARE SEEN AS BELLWETHERS. AND SO I DO NOT EXPECT FURTHER
INTERVENTIONS. THAT DOES NOT MEAN THAT THE WORLD WILL BELIEVE THAT, WE HAVE TO SHOW THAT IMPROVEMENT AGAIN. WE COME OUT CLEARLY AND STATE THAT. HAVING PHOTO OPS OR OTHERS WILL NOT DO IT. THEY HAVE TO MAKE THAT CLEAR TO INVESTORS. THEN SHOW IT OVER THE COMING
YEAR BEFORE THAT TRUST CAN BE REBUILT. ED: FROM A PURE TECHNOLOGY AND COMPETENCE PERSPECTIVE, DO YOU SEE EVIDENCE THAT CHINA IS STANDING ON ITS OWN TWO FEET? >> CERTAINLY. THE PACE OF WHICH CHINA HAS BEEN ABLE TO DEVELOP ITS OWN CHIPS BEATS ANY GLOBAL PRECEDENT. CHINA'S NUMBERS IN TERMS OF PUBLICATION AND MAGAZINES AND NATURE MAGAZINES AND OTHER SCIENTIFIC SOURCES OR OFF OF THE CHARTS. NUMBERS OF PATENTS BEING FILED. THE ABILITY OF HUAWEI TO ISSUE SOME OFFERING SYSTEMS WITH HARMONY.
WE ARE TRULY NOW WITNESSING WHAT I THINK A LOT OF US POOH-POOHED EARLY ON. THE REALITY OF A TRUE. DECOUPLING. CHINESE OPERATING APP STORES AND CUSTOMER BASES AND THOSE ORGANIZED FROM THOSE WESTERN PRODUCERS. CAROLINE: HOW BALKANIZED WILL THE INVESTOR BASE BE THEN? THE LIQUIDITY FROM THE WAS GOING INTO CHINA? WE ARE LOOKING AT SHEIN WOULD SAY IT IS NOT A CHINESE COMPANY BUT IT ONCE WAS AND ULTIMATELY A LOT OF ITS STOCK COMES FROM THEIR. IT IS BASED IN SINGAPORE. THEY ARE TAPPING AN AMERICAN INVESTOR ONCE AGAIN. HOW DO YOU SEE T EQUITY BEING BROUGHT TO BEAR? >> AS YOU KNOW, WE HAVE FOR THE FIRST NEGATIVE FBI, SINCE 1998 IN CHINA WE HAD A 75% OF THE CAPITALIST FLOW INTO CHINA.
25 BILLION. I THINK AGAIN A LOT OF THAT IS RETURNS DRIVEN. THE CAPITOL IS NOT RETURNS INFLUENCED IS BEING SCARED AWAY FROM. ON FUNDAMENTAL REASONS. -- FROM NONFUNDAMENTAL REASONS. PEOPLE ARE LOOKING FOR
OPPORTUNITIES TO INVEST IN CHINA. THEY BELIEVE IT IS A GROWTH OPPORTUNITY. THEY WANT TO NAVIGATE YOU POLITICAL UNCERTAINTIES. THEY WANT TO KNOW THE COMPANIES THEY ARE INVESTING IN IS NOT GOING TO AID AND ABET THE PLA. THEY WILL NOT COMPROMISE AMERICAN VALUES. COMPANIES THAT CAN PROVE THAT ARE GOING TO SEE AN EXTRACT CAPITAL IF THEY CAN RETURN THE PROFILE THAT IS REQUIRED TO COMPETE WITH THE U.S.
OPPORTUNITY COSTS. I THINK THAT CAPITAL RETURN TAKES THE STABILITY AND THOSE COMPANIES THAT ARE NOT FALLEN AFOUL OF THAT. THE FOUR PARADIGM FOR THOSE WHO ARE HAVING CONDUCTIVITY TO THE ENTITIES OR THE PLN. THEY WILL TRACK A LOT LAST SESSION THEY WILL ATTRACT -- THEY WILL ATTRACT A LOT LESS CAPITAL. ED: SEE NASA: DRAGON INDEX IS TRAILING THE NASDAQ 100 -- THE GOLDEN DRAGON INDEX IS TRAILING THE NASDAQ 100. WHAT IS THE 2024 SOY FOR CHINA TECH? -- STORY FOR CHINA TECH? >> WE HAVE TO BE BULLISH. I AM TALKING IN TERMS OF WHAT I
PUT MY MONEY INTO. THE NUMBERS ARE RATIONALLY DISCOUNTED. ALIBABA IS TRADING ITS IPO EVALUATION WITH 10 TIMES INCREASES IN REVENUE. IT MAKES NO LOGICAL SENSE. IF WE CAN SUSTAIN THE GROWTH, CHINA WILL HIT ITS 5% TARGET THIS YEAR. THE IMF CAN RAISE THAT TARGET TO ABOUT 5% HEADING INTO THE TAIL END OF THIS YEAR. I THINK CHINA HAS THE TOOLS TO DEPLOY A FUNDAMENTAL.
THE REAL ESTATE PICTURE IS OVERBLOWN. IT IS NOT A LEHMAN MOMENT. WE ARE ACTUALLY HIGHLY INTO CHINESE EQUITIES AND TAKING THEM OUT OF THE AMERICAN ONES WE THINK ARE FULLY PRICED AT THIS POINT. WE CANNOT MANAGE TO SUSTAIN THIS KIND OF UPSIDE THAT WE HAVE EXPERIENCED THROUGHOUT THE YEAR. I AM A CHINA BOWL HEADING INTO NEXT YEAR. EVEN IF IT IS A MORE MODEST BOWL THAN I WOULD HAVE -- BULL THAN I WOULD HAVE BEEN. CAROLINE: CHINA BOULL LITE.
ED: THANK YOU SO MUCH. WE WANT TO GO BACK TO THE STORY IN THE MARKETS, CONTEXT. SHE RESPONDED. THE MOSYS APRIL AFTER SHORT SELLARS CITED DOCUMENTS AND INSIDERS WHO ACCUSED ATTORNEYS AI COMPANY OF INFLATING ITS REVENUES. THE STOCK TUMBLED AS MUCH AS
9.7% BEFORE CLOSING 5% LOWER IN HONG KONG. IN A FILING, THE REPORT IS QUOTE WITHOUT MERIT AND CONTAINS UNFOUNDED ALLEGATIONS. CAROLINE: COMING UP, A FORMER GOOGLE WORKER IS USING GENERATIVE AI AND MACHINE LEARNING IN THE BIOTECH SPACE. A CONVERSATION WITH THE CRADLE CEO IS COMING UP NEXT. LET US LOOK AT SOME PUBLICLY TRADED SHARES AHEAD OF THE ALL-IMPORTANT EARNINGS FOR CROWD STRIKE. A COMPANY THAT IS FOCUSED ON AI AND A HIGH-POWERED CYBERSECURITY, SHARE PRICES DOUBLED OVER THE COURSE OF THE YEAR. WE ARE HIGHER ON THE DAY. THIS IS BLOOMBERG TECHNOLOGY.
ED: IT IS TIME FOR TALKING TO, A TORONTO-BASED HEDGE FUND BUILDING A STAKE IN TWILIO IS PUSHING FOR A SALE. IT SENT A LETTER TO THE SOFTWARE COMPANIES BOARD OF DIRECTORS URGING THEM TO SELL OR DIVEST ITS DATA AND APPLICATIONS BUSINESS. TWILIO IS WORTH ABOUT 50 MILLION U.S. DOLLARS. IN AN EFFORT TO GO IT AI FOOTPRINT DELL HAS AGREED TO PROVIDE COMPUTING HARDWARE TO ARTIFICIAL INTELLIGENCE START UP IN VIEW. -- INB IUE. IT IS BUILDING MODELS FROM SCRATCH. ADOBE'S PURCHASE OF DESIGN
SOFTWARE MAKER IS AT RISK OF BEING BLOCKED FROM U.K. MARKETS, THE AGENCY SAYS THE DEAL COULD THREATEN COMPETITION AND PART DIVINE SOFTWARE AND REDUCE THE POSSIBILITY OF PRODUCTS IN THE MARKET. THIS IS IN LINE WITH THE A REGULATOR THAT SAID THERE IS A LIST OF OBJECTIONS EARLIER THIS MONTH. CAROLINE: LET US STAY IN THE REGION BECAUSE EUROPEAN BIOTECH STARTUP CRADLE IS ON THE PATH TO EXPANDING ITS USE OF GENERATIVE AI IN THE NAME OF SCIENCE. CRADLE IS ANNOUNCING $24
MILLION IN FUNDING LED BY INDEX VENDORS TAKING THE TOTAL RAISED TO $33 MILLION. FOR MORE ON HOW THIS WILL BE USED, WE OPEN THE CEO. -- WE WELCOME THE CEO. USING BIOLOGISTS DESIGN MORE EFFICIENTLY -- ALLOWING BIOLOGISTS TO DESIGN MORE EFFICIENTLY USING LESS MONEY? >> WE HELP SCIENTIST TEAMS WITH PROTEINS. THAT WILL HELP THEM TO GET TO THE TYPE OF PRODUCTS THEY WANT TO BRING INTO THE MARKET A LOT FASTER.
IT IS A LITTLE BIT AKIN TO HOW LANGUAGE MODELS ARE BEING USED IN NATURAL LANGUAGE. BIOLOGICAL SEQUENCES FROM DNA. CAROLINE: YOU HAVE JOHNSON & JOHNSON INNOVATION, SOME OF YOUR COMPANIES YOU HAVE ALREADY ON BOARDED. THE MONEY YOU USE NOW, HOW DOES THAT ACCELERATE ONBOARDING MORE? WHAT ARE YOU INVESTING IN? TALENT? AI LABS? >> WE ARE SCALING OUR MARKET WITH THIS MONEY AS WELL AS OUR OWN IN-HOUSE DATA COLLECTION. I THINK WHAT IS DIFFERENT IN BIOLOGICAL RESEARCH IS THAT A LOT OF THE DATA IS MACHINE LEARNING MODELS, YOU CANNOT FIND THEM ON THE INTERNET. PEOPLE ARE NOT PUBLISHING THEIR RESULTS. WE ARE GOADING ARE IN SALT -- WE ARE LOADING OUR LARGE LANGUAGE MODELS AND OUR RESEARCH TEAMS. ED:
THERE IS A LARGE BODY OF WORK ON THE USE OF GENERATIVE AI TOOLS IN PROTEINS, DRUG DISCOVERY. THE WHOLE POINT IS LARGELY TO EXPEDITE WHAT IS A HIGHLY REGULATED AND SLOW PROCESS. WHERE YOU ARE IN EUROPE IS THERE REGULATORY SUPPORT FOR? IF YOU ARE TECH WORKS, YOU CAN GO OUT AND MAKE IMPACTS IN THE REAL WORLD.
>> CERTAINLY. LUCKY FOR US, THE PRODUCTS PEOPLE ARE BUILDING TODAY ARE BEING REGULATED. IF YOU WANT TO REGULATE THE MARKET, YOU HAVE TO GO TO THE FDA OR THE EUROPEAN DRUG AUTHORITY, THE SAME FOR FOOD PRODUCTS YOU BRING INTO THE MARKET. WHERE WE SHOW UP AS IN THE RESEARCH AND DEVELOPMENT STAGE FOR THESE TYPE OF PRODUCTS. IF YOU ARE IN PHARMACEUTICALS, YOU CAN TAKE FOUR YEARS BEFORE WE GO INTO CLINICAL TRIAL.
TO TEST IF YOUR DRUGS WERE AS SAFE AND USEFUL FOR PEOPLE. WE CUT THE INITIAL PART OF DRUG DISCOVERY IN HALF. VERY SIMILARLY, PEOPLE ARE NOW USING OIL-BASED PRODUCTS. -- BIO-BASED PRODUCTS. WHY DETERGENTS KEEP WORKING AT LOWER TEMPERATURES, WE ARE INCREASINGLY USING ENZYMES LIKE BIOLOGICALS AND THE FORMULATIONS. THESE TYPES OF PRODUCTS ARE REALLY EXPENSIVE TO BRING TO MARKET. TENS OF MILLIONS OF DOLLARS
WORTH OF R&D. THE PROMISE OF GENERATIVE AI IN THIS SPACE IS TO SIGNIFICANTLY REDUCE THE AMOUNT OF TIME REQUIRED TO DO THE R&D FOR THESE PROJECTS. ALLOWING OUR CUSTOMERS TO BRING THOSE TYPES OF PRODUCTS TO MARKET A LOT FASTER. ED: WHAT IS IT THAT CRADLE HAS THAT IS UNIQUELY YOURS? IS IT THE UNDERLYING LARGE LANGUAGE MODEL YOU HAVE WRITTEN AND TRAINED? >> YES. IT IS TWO THINGS. ONE, THE LARGE LANGUAGE MODELS
THAT HELP GET OUR CUSTOMERS TO OUTCOMES MUCH FASTER. SECONDLY AS WE HAVE COLLECTED A LOT OF PROPRIETARY DATA INSIDE OF OUR LABORATORIES THAT TRAIN THESE MODELS AND MAKE IT USABLE FOR OUR CUSTOMERS. FINALLY, SOFTWARE AND RESEARCH AND DEVELOPMENT FOR THESE TYPES OF PRODUCTS IS STILL VERY EARLY. VERY INTUITIVE.
ED: I AM SURE THE VCS WHO BACK TO THIS LATEST ROUND LOW WE ARE DOING NOW. CAROLINE: THEY LOVE THE BACKGROUND OF THE TEAM AND YOU. YOU ARE PART OF PRODUCT LEADERSHIP OVER A GOOGLE AI AND MACHINE INTELLIGENCE.
DURING A PART SLIGHTLY OF THE WAY IN WHICH WE SHOULD BE DEVELOPING GENERATIVE AI IN PARTICULAR? THE RACE OR THE SLOWDOWN? WHERE YOU COME OUT AND THAT? HAVING WORKED IN A FOUR SUCH AS GOOGLE? >> THERE IS AN ACCELERATION HAPPENING. I AM MOST EXCITED IN THE APPLICATIONS THAT ARE RELATED TO SCIENCE OR CAN WE GET PEOPLE TO LEARN A LOT MORE ABOUT THE RESEARCH AND A LOT FASTER AND THINGS LIKE ELECTRIC ENGINEERING AND THINGS LIKE MECHANICAL ENGINEERING AND PLACES LIKE BIOLOGY. I THINK THERE IS AN INCREDIBLE AMOUNT OF UNTAPPED APPLICATIONS FOR GENERATIVE AI. THOUGH RACES ARE OFF FOR SOME OF THE CHATBOTS AND I WISH MY FORMER EMPLOYER AS WELL AS OPENAI, AND A LOT OF LUCK, I THINK WE ARE ACTIVELY GETTING TO BE HONEST. ED: YOU AND YOUR FOUNDING MEMBERS OF THE COMPANY OR IN EUROPE.
THE ORIGINS ARE HERE IN THE BAY AREA WHERE I AM. WHAT IS THE BENEFIT OF LAUNCHING A GROWING COMPANY IN EUROPE VERSUS TRADITIONAL SILICON VALLEY? >> CERTAINLY, THERE ARE SOME PROS AND CONS. I THINK OF THE PRO SIDE OF THE ACCESS TO HIGH-QUALITY TALK IS AMAZING. I WOULD NOT WANT TO BE A
FOUNDER FIGHTING FOR NO RESEARCH. A LOT OF PEOPLE ARE TRYING TO HIRE, THERE IS A LOT OF TALENT THAT DOES NOT WANT TO MOVE TO THE U.S.. I THINK SECONDLY, THAT IS FOR US MORE SPECIFICALLY, VERY LARGE CONTINGENT OF COMPANIES AND BIOFARMA AND THAT IS BASED OUT OF EUROPE. I MYSELF AM IN SWITZERLAND AND SEVERAL LARGE COMPANIES ARE BASED OUT OF EUROPE. ED: OUR THANKS TO HIM, THE CEO OF CRADLE BREAKING DOWN WHAT HE WILL DO IN A NEW FUNDRAISER. TESLA'S CYBER TRUCK IS FINALLY
ABOUT TO HIT THE MARKET. WE TALK ABOUT WHAT IS ON THE ROAD AHEAD. GET IT? CAROLINE: YOU ARE UPON CENTRAL TODAY. LET US HAVE A LOOK AT
HEWLETT-PACKARD ENTERPRISES. THEY ARE COMING OUT. WE ARE LOOKING AT THE EARNINGS, GIVING US AN INSIGHT INTO I.T. SPENDING IN PARTICULAR AN EARNINGS AFTER THE BELT WERE OFF BY .6% -- AFTER THE BELT
ED: TESLA'S CYBER TRUCK IS ALMOST HERE. EVEN AS THE COMPANY STARTS DELIVERIES, ELON MUSK LAMENTING THAT TESLA HAS DUG ITS OWN GRAY WITH IT. -- GRAVE WITH IT. THE IDEA IS THAT TECHNOLOGICALLY FROM AN ENGINEERING PERSPECTIVE, FROM A BATTERY PERSPECTIVE, THIS IS A LOT? >> A LOT OF PEOPLE HAVE FOCUSED ON THIS DEAL WHICH IS ITS OWN CHALLENGES BUT MUSK HAS WARNED THAT THIS TRUCK HAS A LOT BELLS AND WHISTLES. A LOT OF NEW TECHNOLOGY IN IT. IT WILL BE DIFFICULT TO MANUFACTURE AT HIGH VOLUMES FOR THAT REASON. HE HAS STATED THEY WILL NOT
REACH HIGH VOLUME FOR QUITE A WHILE. CAROLINE: BELLS AND WHISTLES IS WHAT THEY DID FOR THE ACTS. I DID NOT GO ONTO TO WELL FROM A SALES PERSPECTIVE. I'M CURIOUS AS TO WHY HE GOES BACK FOR MORE? WHY DO THIS? >> I LISTEN TO HIM TALK ABOUT THE CYBER TRUCK AND HE KEPT SAYING THESE PHRASES AND I AM LIKE THIS SOUNDS LIKE THE MODEL X ALL OVER AGAIN. THEY EVENTUALLY LAMENTED AND
ACKNOWLEDGED THAT THE MODEL X SUFFERED FROM HUBRIS. I FEAR THAT WE ARE ABOUT TO SEE THIS ALL OVER AGAIN. THE NEW BATTERY ARCHITECTURE, A NEW STEERING WHEEL, THE STEEL, SOUND SYSTEM, WE DO NOT EVEN REALLY HAVE REAL SPECS YET. THERE IS A LOT OF GREAT SURPRISES THAT WILL DELIGHT CONSUMERS WHEN THEY DO THE BIG REVEAL ON THURSDAY.
THE MANUFACTURING AND HIGH VOLUME, IT WILL BE ROCKY AND TESLA HAS SAID THIS. ED: I REMEMBER AND 2019 AND THE CYBER TRUCK ROLLS ON STAGE AND YOU ARE LIKE NO WAY! THEN HE THROWS THE BOWL AND IT SMASHES. IT IS BEHIND SCHEDULE. >> HOW MANY DO THEY HAND OVER ON THURSDAY? IT IS SUPPOSED BE ROUGHLY 10. ARE THEY TO EMPLOYEES?
CONSUMERS? TRUSTED CONSUMERS AND INFLUENCERS? WHEN WE GET THE SALES, QUARTERLY SALES OF DELIVERING FIGURES IN JANUARY, HOW MANY CYBER TRUCKS ARE ON THAT LIST? I THINK THEY HAVE LEARNED LESSONS. THEY ARE REPEATING MISTAKES THAT THEY MADE WITH THE X IN TERMS OF PACKING THIS VEHICLE WITH A LOT OF NEW TECHNOLOGY. CAROLINE: THE PART OF THE LAWN INC. THE ALL IMPORTANT -- THE THAT DOES IT FOR THIS EDITION OF MUBARAK TECHNOLOGY. ED: STAY WITH BLOOMBERG TELEVISION. REINVENT IN LAS VEGAS. A LOT OF CHAT AROUND AI AND
CHIPS. YOU DO NOT WANT TO MISS IT. CAROLINE: YOU DO NOT WANT TO MISS THE RECAP OF OUR PODCAST. GO ONLINE, APPLE, SPOTIFY, OR EVERY OR EVER YOUR GET YOUR CONSUMPTION OF PODCASTS. THIS IS MUBARAK TECHNOLOGY.
2023-12-03 13:37
