Escalation Between Iran and Israel, Tech Leads Selloff | Bloomberg Technology
>> FROM THE HARDWARE INNOVATION AND MONEY COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." STRAIGHT TO THE BREAKING GEOPOLITICAL NEWS AND THE IMPACT. U.S. HAS INDICATIONS IRAN IS
PREPARING TO EMINENTLY LAUNCH A BALLISTIC MISSILE ATTACK AGAINST ISRAEL. THAT'S ACCORDING TO A SENIOR WHITE HOUSE OFFICIAL. MARKETS SEEKING OUT SAFETY. DOWN ON THE S&P 500 MORE THAN A PERCENTAGE POINT. A SWIFT MOVE FROM THE HEADLINE BUT THIS IS ONLY THE BIGGEST ALLOW SINCE SEPTEMBER 6, NOT EVEN A MONTH. NASDAQ 100 SIMILAR TO THE DOWNSIDE.
MONEY MOVING INTO OIL, UP 3.5%. 10-YEAR YIELD CRASHES DOWN SIX BASIS POINTS AS WE SEE A SEARCH FOR SAFETY. KAILEY LEINZ ON THE LATEST NEWS. WE ARE PLEASED TO HAVE YOU NEW YORK. THE U.S. IS SUPPORTING PREPARATIONS TO DEFEND ISRAEL AGAINST A POSSIBLE ATTACK. KAILEY:
I WOULD REMIND EVERYONE THE U.S. ALREADY HAS HAD TO ACT IN TANDEM WITH ISRAEL AND OTHER ALLIES, INCLUDING THE U.K. AND JORDAN ABOUT SIX MONTH AGO WHEN IRAN LAUNCHED HUNDREDS OF MISSILES AND DRONES AT ISRAEL BACK IN APRIL.
THOSE WERE INTERCEPTED AS IT WAS TELEGRAPHED BEFOREHAND THEY WERE COMING. THE U.S. INTELLIGENCE SUGGEST IRAN MAY BE PREPARING TO DO SOMETHING SIMILAR AS IT RETALIATES AGAINST ISRAEL. THIS IS RETALIATION WE WERE EXPECTING FOR ABOUT TWO MONTHS SINCE ISRAEL TOOK OUT, ALTHOUGH DID NOT CLAIM CREDIT FOR HAMAS'S POLITICAL LEADER IN TEHRAN OVER THE SUMMER. THERE IS POTENTIALLY MORE FOR THEM TO RETALIATE AGAINST NOW AFTER ISRAEL JUST IN THE LAST WEEK WAS ABLE TO KILL THE LEADER OF HAMAS. HE HAS JUST IN THE LAST ONE FOR HOURS -- THEY HAVE JUST LOST A GROUND INCURSION INTO LEBANON AND WHAT THEY ARE CALLING TARGETED OPERATIONS. THAT IS THE BEHAVIOR U.S. AND OTHERS HAVE BEEN WARNING COULD BE SEEN AS EVERYONE IS TRYING TO FEND OFF A WIDER REGIONAL WAR IN THE MIDDLE EAST BUT ISRAEL IS MOVING INTO LEBANON AS WE SPEAK.
HEZBOLLAH, ONE OF THE MOST POWERFUL IF NOT THE MOST POWERFUL IRANIAN PROXY HAS BEEN SERIOUSLY WEAKENED BY ISRAELI ACTIVITIES IN THE LAST SEVERAL WEEKS, NOT JUST WITH THE KILLING BUT A NUMBER OF SENIOR COMMANDERS. THE EXPLOSIONS OF PAGERS AND WALKIE-TALKIES IN RECENT WEEKS THAT LIMITED THEIR ABILITY TO COMMUNICATE. A WEAKENED COULD BE A WEAKENED IRAN.
IRAN WANTING TO SHOW STRENGTH IF IT COULD DRAW OTHERS INTO THE CONFLICT, INCLUDING THE U.S. WHICH SAID THEY ARE SENDING THOUSANDS OF MORE TROOPS AND ASSETS INTO THE REGION. CAROLINE YOU GIVE US THE CONTEXT OF THE U.S. RESPONSE AFTER WHAT IRAN DID IN APRIL. THIS IS NOT THE FIRST TIME WE HAVE SEEN THEM RESPOND BUT IT FELT AS THOUGH IT WASN'T AS AGGRESSIVE AS IT COULD HAVE BEEN. WHAT ARE YOU GETTING IN TERMS OF SIGNALS? KAILEY: THAT'S RIGHT.
IT WAS EXPLAINED IN APRIL IRAN SENT ITS SLOWEST DRONES FIRST. TRYING TO SIGNAL THE ATTACK WAS COMING AND THAT ENABLED THE ATTACK LARGELY BE INTERCEPTED AND HAD LITTLE DAMAGE TO ISRAELI INFRASTRUCTURE. ONLY ONE PERSON WAS KILLED. THAT WAS ESCALATION THAT WAS MORE THE ESCALATORY THAN ESCALATORY. ISRAEL HIT BACK IN A RELATIVELY MILD MANNER AND NO TENSIONS WERE CONTINUING TO DECLINE AT THAT POINT. THE QUESTION IS THE SIZE AND SCOPE OF IRAN'S RESPONSE THIS TIME. AFTER THE KILLING OF THE
POLITICAL LEADER, MANY WERE WARNING THAT IRAN MIGHT WANT TO LAND A PUNCH THIS TIME IN A WAY IT DIDN'T BACK IN APRIL DUE TO THE INTERCEPTION OF EVERYTHING PRETTY MUCH THEY SENT OVER. IT'S A QUESTION OF HOW LIMITED IN SCOPE IRAN CHOOSES TO BE HERE AS IRAN MAY NOT HAVE DIRECT INCENTIVE TO ESCALATE THE WAR FURTHER, PUT ITSELF INTO THIS CONFLICT RATHER THAN DOING THE FIGHTING THROUGH ITS PROXIES AS WE HAVE SEEN THEM DO SINCE OCTOBER 7, ALMOST A FULL YEAR AGO. NOT WANTING TO DRAW MORE DIRECT CONFLICT WITH THE UNITED STATES EITHER. WHEN AMERICAN TROOPS GET INVOLVED THAT IS WHERE THINGS GET A WHOLE LOT TRICKIER. CAROLINE:
KAILEY LEINZ, THANK YOU FOR BEING HERE. WE WANT TO GET MORE INSIGHT. DAN WILLIAMS IS ON THE GROUND. HE IS IN -- NEAR THE LEBANESE BORDER.
THIS FOLLOWS ISRAELI FORCES MOVING INTO SOUTHERN LEBANON AND ESCALATION OF THEIR OWN CAMPAIGN AGAINST HEZBOLLAH. WHAT IS THE LATEST ON THE GROUND? DAN: THEY HAVE PUBLICLY WITH GROUND FORCES ON A FAIRLY LARGE SCALE. AT THE SAME TIME, REVEALING TO THE WORLD SINCE NOVEMBER OF LAST YEAR IT'S FOR CONDUCTING DOZENS OF SMALL SCALE COMMANDO OPERATIONS ACROSS THAT BORDER IN ORDER TO PREPARE FOR WHAT WE HAVE SEEN IN THE LAST HOURS AND COLLECT INTELLIGENCE AND NOTED TO DETECT AND DISMANTLE HEZBOLLAH POSITIONS [INDISCERNIBLE] MIGHT BE USED FOR A CROSS-BORDER ATTACK, PRESUMABLY THE OCTOBER 7 ATTACK BY HAMAS.
CAROLINE: DAN WILLIAMS ON THE MOVE FOR US NOW. WE APPRECIATE YOUR TIME. LET'S GET A MARKET REACTION TO WHAT IS A PEOPLE FOCUSED STORY, A GEOPOLITICAL STORY AND THEN THE WORLD OF TECHNOLOGY. ANKUR CRAWFORD IS WITH US. IT IS DIFFICULT TO RESPOND TO BREAKING NEWS BUT DOES ANY OF THIS VINDICATE A KNEE-JERK REACTION THAT WE SEE IN THE MARKETS? ANKUR: FOR SURE. ANYTIME THERE IS UNCERTAINTY IT
WILL HIT THE MARKET. THE RAMIFICATIONS OF A WAR ARE CLEARLY GLOBAL, WIDESPREAD AND IMPACTFUL. BESIDES THE FACT IT'S VERY SAD, THE MARKET REACTION IS NOT SURPRISING AT ALL. CAROLINE: WHEN YOU LOOK AT THE BIGGEST DRAGS ON THE NASDAQ BENCHMARK, ON THE S&P BENCHMARK, THEY ARE BIG TECH. THAT'S FLOORS AND BECAUSE THEY ARE THE BIGGEST COMPANIES OUT THERE RATHER THAN HAVING THE MOST EXPOSURE TO GEO-CLINICAL TENSIONS.
DOES THAT WARRANT A DESIRE TO PULL BACK ON ANY FOCUS ON THE MAGNIFICENT SEVEN. -- MAGNIFICENT SEVEN? ANKUR: IT IS CLEAR AS THE MARKET HAS OUTFLOWS AND PEOPLE TRYING TO SELL THE MARKET, THE MAG7 ARE THE BIGGEST PROPORTION OF THE BENCHMARKS. THE EASIEST PLACE TO TAKE CAPITAL FROM. IT'S NOT SURPRISING THEY ARE
UNDERPERFORMING. DOES IT GIVE US ANY LESS CONVICTION IN THE LONG TERM OF WHERE THE BUSINESSES ARE GOING? IT DOESN'T. IT DOESN'T REALLY CHANGE THAT THESIS. CAROLINE: TALK ABOUT WHERE BUSINESSES ARE GOING. WE HAVE APPLE ON THE DOWNSIDE SIGNIFICANTLY, NOT JUST BECAUSE OF THE MARKET BUT WORRIES ABOUT THE SALES OF THE IPHONE 16. A LOT OF THAT IS PREDICATED ON WHEN IT BRINGS AI INTO THE OFFERING.
MICROSOFT SHOWING UP PROWESS AND CONSUMER AI. WHAT IS THE THESIS FOR THESE NEEDS AND HOW MUCH WILL BE START USING THE ARTIFICIAL INTELLIGENCE THEY PROMISE? ANKUR: I WOULD LIKE TERMITE EVERYONE AI BURST ONTO THE CONSUMER SEEN ONLY 22 MONTHS AGO. WE ARE EXPECTING LEAPS AND BOUNDS. WE EXPECT REVENUE AND THE ROI INSIDE OF 22 MONTHS IS PROBABLY THE FASTEST EXPECTATION BAKED INTO ANY COMPANY IF FOR ANY TECHNOLOGICAL REVOLUTION. AI WILL BE INTEGRATED WITH EVERYTHING THAT WE DO.
TODAY WE THINK OF IT AS A COPILOT. IT'S REALLY A COWORKER WHERE WE ARE GOING TO. A PERSONAL DIGITAL ASSISTANT IS WHERE THE CONSUMER AI WILL GO. THEN ONE HAS TO ASK FOR A COMPANY LIKE APPLE. CAN THEY ACTUALLY ABSTRACT YOU AWAY FROM YOUR PHONE AND THE APP LAYER AND SIGNIFICANTLY CHANGE THE BUSINESS MODEL AS THEY GO INTO A MORE PERSONALIZED DIGITAL ASSISTANT TYPE WORLD? WHAT IS THAT WORTH TO APPLE? WHAT IS THAT WORTH TO A CONSUMER? I WOULD ARGUE IT IS SIGNIFICANTLY MORE THAN WORRYING ABOUT A NEAR-TERM PRODUCT CYCLE. YOU KNOW THAT SOFTWARE-BASED PRODUCT CYCLE IS COMING. CAROLINE:
WE HAVE BEEN TALKING ABOUT THE AI IMPACT ON STOCKS AND REVENUE FOR 22 MONTHS, EVEN IF THE CONSUMER HAS NOT EMBRACED IT AS MUCH AS THE MARKET WANTS TO TALK ABOUT IT. WHERE HAVEN'T WE EMBRACED THE STOCKS THAT WILL RALLY THAT WE HAVE NOT SEEN OUTPERFORM YET? ANKUR: I THINK AI WILL GO THROUGH WAVES. WE HAVE LOOKED AT THE PICKS AND SHOVELS. IT'S BEEN NVIDIA, THE SEMICONDUCTOR COMPANIES AND EVEN INSIDE THE SEMI'S AND HAS NOT BEEN ALL SEMI'S. THERE'S BEEN A SELECT FEW IN A BIFURCATION. WE HAVE SEEN IT IN A SELECT NUMBER OF INDUSTRIALS. THOSE THAT CATER TO DATA CENTER
AND THE CHANGING DATA CENTER. WE SAW IT IN ELECTRICITY WITH SOME OF THESE NUCLEAR PLAYS AND THE UTILITIES. I BELIEVE THE NEXT PHASE OF THIS IS GOING TO COME AND THE REST OF THE DATA CENTER AND THOSE COMPANIES THAT SHOW THEY ARE IMPROVING THEIR OPERATING LEDGERS. THAT IS THE NEXT PHASE.
I EXPECT THAT IN 2025 TO 2026. IT IS NOT FLIPPING A SWITCH. IT TAKES PLANNING. CAROLINE: WE THINK HOW IT WILL BE APPLIED TO HEALTH CARE AND FINANCE. I GO BACK TO OUR TOP STORY,
GEOPOLITICAL TENSIONS. HOW MUCH WILL BE APPLIED TO DEFENSE? THIS AT AN AREA YOU HAVE BEEN THINKING WOULD BE OUTPERFORMING FROM AN AI BACKING? ANKUR: IT ABSOLUTELY WILL. THE AMOUNT OF MONEY REQUIRED TO SHORE UP OUR DEFENSES AND THAT WILL BE SPENT ON DEFENSE IS GOING TO BE SIGNIFICANT.
IN PART BECAUSE LIKE THE INDUSTRIAL REVOLUTION IN THE LATE 1700S, IT CHANGED THE GEOPOLITICAL LANDSCAPE FOR ENGLAND AT THAT POINT IN TIME. I BELIEVE AI IS GOING TO CHANGE THE GEOPOLITICAL LANDSCAPE FOR WHICHEVER COUNTRIES ACTUALLY WHOLEHEARTEDLY ADOPT IT AND BECOME LEADERS IN IT. THAT CAN SET THE CHESS BOARD FOR THE NEXT 50 YEARS. CAROLINE: IT'S BEEN WONDERFUL TO HAVE YOU IN STUDIO TODAY. WE APPRECIATE YOU GOING THROUGH THE GAMUT OF BREAKING NEWS. TAIWAN CLOSING ITS $2.5 TRILLION STOCK MARKET AS SUPER
TYPHOON CREIGHTON APPROACHES THE ISLANDS. THE MARKET WILL NOT CONDUCT SECURITY OR FIXED INCOME TRADING ON WEDNESDAY ACCORDING TO STATEMENTS FROM THE EXCHANGES. TRADER ARE WATCHING FOR DISRUPTION FROM THE TYPHOON WHICH WILL LIKELY HIT THE WEST COAST, HOME OF THE HEAVY INDUSTRY, MANUFACTURING AND TSMC. COMING UP, M&A NEWS. WE SPEAK WITH DIRECTV CEO BILL MORROW AS THE COMPANY SET TO MERGE WITH DISH, CREATING THE LARGEST PAY-TV PROVIDER IN THE U.S. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: ECHOSTAR ANNOUNCED IT IS SELLING ITS VIDEO DISTRIBUTION BUSINESS TO DIRECTV, A MERGER THE SATELLITE PROVIDERS HAVE FLIRTED WITH FOR ALMOST TWO DECADES. WE CAUGHT UP WITH THE CEO.
HERE'S WHAT HE HAD TO SAY. >> THE E BUSINESS ENDS UP BEING A GREAT HANDS AND DEVELOPS ACCORDING TO THEIR LIFELONG WORKING VISION TO MAKE IT ONE OF THE GREATEST COMPANIES THAT CAN MAKE. THE COMBINATION OF THE COMPANIES WILL BE THAT COMPANY. THE COMPANY THAT IS UNIQUE AND POSITION IN THE MARKETPLACE. IT IS BITTERSWEET. IN A WAY TO SEE IT IN RIGHT HANDS, THE COMING TOGETHER AND BE THE CHALLENGE THAT CHARLIE CREATED OVER TIME.
IT'S ALSO LETTING IT GO. IT'S ALSO DIFFICULT. THE ANSWER IS BITTERSWEET, NOT REALLY OBVIOUS. >> SATELLITE-TV IS ULTIMATELY IN A STATE OF DECLINE.
WILL THIS BE A MANAGED DECLINE? >> IT IS PART OF THE THESIS. THIS IS NOT THE TIME YOU SHOULD TO BE -- IT USED TO BE 10 OR 15 YEARS AGO WITH THESE COMPANIES COMING TOGETHER WAS UNIQUE AND STRONG. THE COMPANIES HAVE LOST 60% OTHER SUBSCRIBERS OVER THE PAST -- SINCE 2016. EVERYONE HAS ACCESS TO BROADBAND TODAY, TERRESTRIAL, SATELLITE, STARLINK, THE DIRECT TO CONSUMER DIGITAL PROVIDERS PROGRAMMERS GOING AROUND THESE COMPANIES, THEY ARE 10 TO 20 TIMES LARGER IN TERMS OF CUSTOMER BASE. IT IS TIME FOR THEM TO INCREASE
THEIR SUSTAINABILITY AND ABILITY TO NEGOTIATE BETTER DEALS THAT HE CAN PASS ON TO CONSUMERS. CAROLINE: THAT WAS THE ECHOSTAR CEO. LET'S CONTINUE THE PAY-TV MERGER. WE ARE JOINED BY WHO ECHOSTAR SOLD DISH TO, DIRECTV. THE CEO JOINS US NOW. BILL MORROW, I ASK YOU THIS STRATEGY GOING FORWARD.
TO COMBINE THE 19 MILLION SUBSCRIBERS YOU HAVE. BILLL: WE WILL OFFER THEM SOMETHING THAT THE NEW KIND OF COMPETITION CANNOT. YOU THINK ABOUT THE VOLUME OF DIRECT TO CONSUMER SUBSCRIPTION TYPE SERVICES.
THESE ARE THE NETFLIX, THE AMAZON PRIMES, HBO MAXS THAT ARE OUT THERE. THEY HAVE A NARROW SCOPE OF CONTENT THEY OFFER. THE WAY THEY CAN ONLY NAVIGATE THROUGH THEIR PLATFORMS. CONSUMERS ARE LEFT WITH HAVING TO PICK AND CHOOSE MULTIPLE SUBSCRIPTION SERVICES AND MANAGE THIS ON THEIR OWN. THEY ARE HAVING DIFFICULTY NAVIGATING ACROSS THESE DIFFERENT PLATFORMS. THE NEW
COMPANY WITH DIRECTV AND DISH WILL ACTUALLY BUNDLE ALL THOSE DIFFERENT SERVICES TOGETHER. WE WILL STILL HAVE A FORM OF LINEAR TIME OF DAY TYPE PROGRAMMING. WE WILL LET THE CONSUMER PICK AND CHOOSE TWO OR THREE OR FOUR OTHER DIRECT TO CONSUMER PROGRAMS. WE WILL WRAP THE USER INTERFACE AROUND THAT AND MAKE NAVIGATION EASY. MAKE SEARCH AND RECOMMENDATION EASY. EQUALLY AS IMPORTANT, THE COMBINED ENTITY, JUST UNDER 20 MILLION SUBSCRIBERS, WILL GIVE US THE VERY NEEDED INFLUENCE ON THE INDUSTRY TO WORK WITH THE PROGRAMMERS TO SAY THE DAYS OF THE PAST OF 250 CHANNELS ARE GONE.
CONSUMERS DON'T WANT TO PAY FOR CONTENT THEY ARE NEVER GOING TO WATCH. THE PROGRAMMERS ARE STILL KIND OF TIED TO THOSE OLD GRIEVANCES. THIS WILL CHANGE THAT. IT'S IN THE INTEREST OF THE CONSUMERS. WE THINK IT IS IN THE INTEREST OF THE PROGRAMMERS IN THE LONG-TERM AND OUR COUNMPANY. CAROLINE:
I CAN SEE HOW THIS IS ABOUT SLIMMING DOWN COSTS. WHAT ABOUT GROWTH? DO YOU THINK YOU WILL EVER INCREASE THE NUMBER OF SUBSCRIBERS OR JUST ABOUT SERVING THE ONES YOU HAVE? BILLL: WE HAVE STUDIED THE MARKET AND ONE OF THE PAIN POINTS IN THE MARKET THAT CONSUMERS FEEL AND HAVING TO MANAGE MULTIPLE SUBSCRIPTIONS, NOT KNOWING WHERE YOUR CONTENT IS, EVEN THE BIGGEST SEARCH ENGINES CAN'T KEEP UP WHEN YOU LOOK FOR A PARTICULAR SEASON OR EPISODE OF YOUR FAVORITE SERIES OR A MOVIE. WE KNOW THAT CONSUMERS NEED MORE THAN WHAT IS AVAILABLE TODAY.
HAVING THE INFLUENCE -- WE WILL GIVE THEM THINNER LINEAR BUNDLES. THEY CAN ADD AND INSERT THE DIRECT TO CONSUMER NETFLIX OR AMAZON PRIME TYPE SERVICES. WITH A DIFFERENT KIND OF EXPERIENCE. THAT WILL ALLOW US TO GET BACK INTO A GROWTH SITUATION. WE NEED TO COMPANIES TO COME TOGETHER BECAUSE WE ARE FALLING FAST. HE HEARD THIS FROM A NUMBER OF DIFFERENT INDUSTRY
EXPERTS. THIS BUYS US TIME AND GIVES US INFLUENCE TO SHAKE THE INDUSTRY. -- SHAPE THE INDUSTRY THAT'S ALL ABOUT THE CONSUMER. CAROLINE:
DO WE NEED MORE STREAMING? YOU THINK ABOUT DISH TV AND ULTIMATELY IT SOUNDS LIKE WE ARE GOING BACK TO THE PAST BY RE-BUNDLING THE THINGS WE HAVE ALREADY SNIPPED IN TERMS OF THE COURT. BILL: THE BUNDLE PASS WILL NOT SERVE US GOING INTO THE FUTURE AND THAT IS WHY WE BELIEVE WITH THE NEW CHARACTER GRIEVANCE IT WILL ALLOW YOU AND THE CONSUMERS AND THE REST OF YOUR VIEWERS TO PICK AND CHOOSE THE GENRES OF THEIR CHOICE AND NOT PAY FOR ALL THE REST OF IT. IT'S NOT AS BIG OF A BUNDLE IS WHAT WE HAVE SEEN IN THE PAST. THAT IS WHAT WE HAVE BEEN ADVOCATING AND THE DEAL WE STRUCK WITH DISNEY THAT WE FOUGHT SO HARD FOR TO GET. LET THE CONSUMERS PICK WHAT THEY WANT TO WATCH NOT FORCED THEM TO PAY FOR STUFF THEY WILL NEVER TUNE INTO.
THAT IS OUR FUTURE. CAROLINE: YOU HAVE OTHER STAKEHOLDERS, LARGELY PRIVATE EQUITY WHEN IT COMES TO TPG, AND THE CREDITORS. A LOT OF THIS IS BASED UPON WHETHER OR NOT THE BONDHOLDERS OF DISH SIGN UP TO THIS. HOW PAINFUL IS IT TO TAKE THOSE HAIRCUTS? BILL: WE THINK THE CURRENT BONDHOLDERS UNDER ECHOSTAR ARE GOING TO HAVE A BETTER DEAL BY CONVERTING AND EXCHANGING IT INTO THE DEBT WE ARE OFFERING. WE THINK IT'S BETTER LEVERAGE RATIOS THAN WHAT WE SEE TODAY. THIS BETTER CONFIDENCE IN TERMS OF THIS BUSINESS MODEL ABOUT LOOKING FORWARD TO THE FUTURE WITHOUT THE RISK THEY MIGHT PERCEIVE TODAY WITHOUT DBS BUSINESS. WE HAVE ADVOCATED AND EXPLAINED
WHILE OUR INITIAL RATIO IS IN THE TWO TO 2.5 TIMES, THAT'S BETTER THAN ANY OTHER PAY-TV PROVIDER TODAY, AND WITHIN A 12 TO 24 MONTH WINDOW WE WILL BE FOCUSED ON BRINGING THAT LEVERAGED RATIO DOWN TO BELOW TWO. THAT IS THE REASON WE BELIEVE THEY ARE INTERESTED IN MAKING THIS EXCHANGE, LOWERING THE DEBT, MAKING SURE THE M&A DEAL CAN HAPPEN AND THEN WE PROCEED WITH THE SEC AND DOJ FOR THE NEEDED REGULATORY APPROVALS. CAROLINE: WE WOULD LIKE TO KEEP IN TOUCH AS YOU GO THROUGH THOSE APPROVALS. BILL, WE APPRECIATE YOUR TIME. BACK TO THE MARKETS WHICH ARE UNDER SIGNIFICANT PRESSURE FROM GEOPOLITICAL NEWS. OFF BY 1.3% ON THE S&P 500.
IT'S A LARGEST NUISANCE SEPTEMBER -- MOVEMENT SINCE SEPTEMBER 6. BIG TECH FEELING THE MOST PAIN. MONEY MOVING INTO BRENT CRUDE AND THE HAVEN THAT IS THE U.S. 10-YEAR . WE WILL KEEP YOU UP TO SPEED. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: A QUICK CHECK ON SOFTBANK'S ADR'S. THIS EQUITY-LIKE INSTRUMENTS TRADING IN THE U.S. OFF BY 20%. THEY HAD BEEN RISING -- OFF BY .8%. THEY HAD BEEN RISING. THE FIRM'S VISION FUND PLANS TO INVEST IN OPENAI, CITING A SOURCE. THIS AS OPENAI KICKS OFFICE DEVELOPERS DAY TODAY. RACHEL IS BUSY. TELL US ABOUT THE INVESTMENT ROUND WHERE WE STAND IN TERMS OF THE $6.5 BILLION RAISE. RACHEL: THAT SHOULD BE CLOSING SOON.
IT TAKES TIME FOR THE ROUNDS TO CLOSE. I EXPECTED TO CLOSE PROBABLY, I DON'T KNOW, SOON. THE NEXT FEW DAYS PERHAPS. CAROLINE: I KENAI ON WHAT'S HAPPENING IN THE PRIVATE MARKETS. IN PUBLIC, THEY GO TO THEIR DEVELOPERS.
IT WILL BE LIVE-STREAMED. WHAT CAN WE EXPECT COMING FOR DEVELOPERS OF OPENAI? RACHEL: THIS WILL BE A REALLY DIFFERENT KIND OF DEVELOPER DAY THAN WHAT THEY HELD LAST YEAR. LAST YEAR WAS THE FIRST ONE. IT WAS A BIG SPLASHY DAY. COOL SNACKS AND STICKERS. COOL STUFF LIKE THAT.
IT WAS IN SAN FRANCISCO. THEY HAVE A LOT OF DEVELOPERS. THEY HAVE 3 MILLION DEVELOPERS AROUND THE WORLD AND DECIDED TO TURN THIS INTO THREE EVENTS. SADLY FOR PEOPLE LIKE US, IT IS CLOSED TO THE MEDIA. THEY WILL HAVE AN EVENT IN SAN FRANCISCO TODAY AND ANOTHER ONE IN LONDON AND ANOTHER IN SINGAPORE SINCE THEY HAVE SO DEVELOPERS AROUND THE WORLD. THEY WANT TO FOCUS ON MEETING IN SMALL GROUPS WITH THESE PEOPLE AND ALSO COMMUNICATING WITH THEM AND TAILORING SOME OF THEIR API TYPE STUFF TO THEM. CAROLINE: WHAT IS THE MOST EXCITING OF IT -- AREAS THE LIVERS ARE LEANING INTO? RACHEL: THE COMPANY HAS A REALLY WIDE RANGE OF SOFTWARE AVAILABLE TO THE DEVELOPERS.
IT'S A LITTLE HARD TO SAY WHAT SPECIFICALLY THEY MAY WANT TO USE. THE COMPANY HAS THINGS FOR CONTENT MODERATION. IT HAS IN THE PAST HAD THINGS IT OFFERS. ALL KINDS OF CHAT RELATED THINGS. IT DEPENDS ON WHAT YOU ARE BUILDING, IF YOU WANT IT FOR INSIDE YOUR COMPANY OR BUILD IT FOR TO CONSUMERS. CAROLINE: RACHEL METZ, WE ARE EXCITED TO SEE WHAT YOU BRING US LATER.
SOME BREAKING NEWS FROM SAMSUNG. THEY ARE GOING TO CUT THOUSANDS OF JOBS AS PART OF A WORLDWIDE LAYOFF. SAMSUNG THE JUGGERNAUT WHEN IT COMES TO CHIPMAKING, WHEN IT COMES TO HARDWARE WITHIN PHONES. CURRENTLY TELEVISIONS, YOU NAME IT. ELECTRONICS GIANT SAYS IT'S CUTTING THOUSANDS OF JOBS AS
PART OF WORLDWIDE LAYOFFS. WE WILL BRING YOU MORE CONTEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." WE HAVE THE BREAKING GEOPOLITICAL NEWS THAT THE U.S. HAS INDICATIONS IRAN IS
PREPARING TO EMINENTLY LAUNCH A BALLISTIC MISSILE ATTACK AGAINST ISRAEL. THAT'S ACCORDING TO A SENIOR WHITE HOUSE OFFICIAL. WE SEE THE FLIGHT TO SAFETY. 10-YEAR YIELD CURRENTLY AT 372. S&P 500 OFF BY PERCENTAGE POINT. EQUITIES UNDER PRESSURE, PARTICULARLY BIG TECH AS THEY ARE THE LARGEST MARKET CAPITALIZATIONS. BRENT CRUDE UP MORE THAN 4%. LET'S WEAVE INTO SOME OF THE TECHNOLOGY NEEDS TO KEEP AN EYE ON. RYAN IS WITH US FOR MORE.
THIS IS A KEY RISK AVERSION TRADE TODAY. RYAN: ABSOLUTELY. PRETTY BROAD-BASED WEAKNESS ACROSS EQUITIES. THIS GROUP IS DONE WELL THIS YEAR. THEY ARE TAKING SOME OF THE INITIAL PROFIT-TAKING, SOME OF THE BIGGER MOVES. COMEDIES LIKE APPLE, NVIDIA, CHIPMAKERS BROADLY. THESE ARE STOCKS THAT HAVE BEEN TAKING A BIT OF A DROP TODAY ON THE GEOPOLITICAL RISK AND THE INCREASED UNCERTAINTY SURROUNDING THAT. CAROLINE: THERE ARE INDIVIDUAL NAMES TO
CALL OUT. THERE IS THE MOOD MUSIC AND THEN THERE IS THE MICRO NEWS WITH APPLE FALLING SIGNIFICANT ON THE BACK OF ANXIETY SURROUNDING THE IPHONE 16 SALES. WHO HAS BEEN CUTTING BACK ON THAT PARTICULAR NAME? RYAN: THERE'S BEEN A LOT OF CONCERN ABOUT APPLE, A LOT OF FOCUS ON THE UPCOMING IPHONE WHICH WILL HAVE A I FUTURES.
IT WILL BE EARLY READS ON DEMAND IF YOU'RE LOOKING AT PREORDERS AND LEADTIMES AND THINGS LIKE THAT. TODAY WE HAVE BARCLAYS COMING OUT. THE LATEST FIRM TO SAY DEMAND IS NOT AS STRONG AS PEOPLE WERE HOPING OR EXPECTING. THERE WAS A LOT OF OPTIMISM BUILT AROUND THE IDEA THE AI AND THE IPHONE COULD LEAD TO THIS BIG UPGRADE SUPER CYCLE. PEOPLE EXPECT A PRETTY STRONG GROWTH OUT OF THE AI IPHONE OVER THE LONGER TERM BUT MAINLY THIS WILL BE MORE OF A 20252024 STORY. -- 2025 THAN 2024 STORY.
CITI SAYING ONCE THE AI FEATURES ARE AVAILABLE WE MIGHT SEE MORE PEOPLE LOOKING TO UPGRADE THEM. FOR THE MOMENT, GIVEN HOW MUCH APPLE HAS BEEN UP SINCE APRIL, IT SEEMS LIKE THIS IS THE NAME PEOPLE ARE TAKING SOME PROFITS IN WHEN YOU HAVE THIS ADDITIONAL QUESTION MARK OF THE GEOPOLITICAL RISK AND THE IPHONE PREORDERS SALES. CAROLINE: WHEN WE SEE THESE SNAP MOVES, APPLE IS AN ONGOING NARRATIVE. MORE BROADLY TODAY DO YOU RESPECT PEOPLE -- I HATE TO USE THIS PHRASE BUT BUY THE DIP? RYAN: PEOPLE KIND OF LOOK AT BIG TECH IS A MORE DEFENSIVE PLACE IN THE MARKET. GIVEN STRONG CASH FLOWS, DURABLE EARNINGS GROWTH, PRETTY GOOD REVENUE GROWTH, PRETTY POSITIVE DEMAND TAILWINDS WHEN YOU CONSIDER INTEREST IN AI AND SO FORTH, PEOPLE HAVE BEEN LOOKING TO BIG TECH AS AN AREA TO GO INTO IN PERIODS OF HEIGHTENED UNCERTAINTY. THEY HAVE SOME SAFE HARBOR
CHARACTERISTICS ALTHOUGH THERE ARE CONCERNS ABOUT VALUATIONS GIVEN HOW MUCH THEY MOVED UP THIS YEAR. IT WOULD NOT SURPRISE ME IF HE SAW PEOPLE LOOKING AROUND AND SANK THERE'S A LOT OF UNCERTAINTY RIGHT NOW AND IT LOOKS LIKE A PLACE OF RELATIVE CERTAINTY AND THEY ARE WILLING TO PAY UP FOR THAT. CAROLINE: THE S&P 500 BOUNCING OFFICE LOWS. LET'S BRING IN MY SHEPHERD NOW ON THE LATEST NEWS WHAT WE UNDERSTAND THE U.S.
IS ACTIVELY SUPPORTING PREPARATIONS TO DEFEND ISRAEL AGAINST ANY POSSIBLE ATTACK FROM IRAN. CAN YOU BRING US THE LATEST FROM WASHINGTON? MIKE: IT'S ALL HAPPENING VERY FAST TODAY. WE SAW THIS MORNING A WARNING FROM THE WHITE HOUSE THAT IRAN WAS MAKING PREPARATIONS TO RETALIATE AGAINST ISRAEL WITH A BALLISTIC MISSILE ATTACK THAT COULD BE EMINENT. THIS IS REMINISCENT OF THE KIND OF MORNING WE SAW IN 2022 WHEN THE U.S. WAS WARNING RUSSIA WAS PREPARING TO INVADE UKRAINE. THE U.S. IN SHARING THE INTELLIGENCE AND SOME INFORMATION IT IS SEEN OUT IN THE WORLD AND THAT TYPICALLY IN THE PAST HAS KEPT SECRET UNDER WRAPS FOR THE SAKE OF SHARING WITH GOVERNMENTS BUT IS TRYING TO SHOW TEHRAN WE ARE WATCHING YOUR NEXT MOVE. WE ARE ALSO MAKING PREPARATIONS
TO DEFEND ISRAEL, WHICH IS ONE OF THE CLOSEST U.S. ALLIES IN THE MIDEAST. CAROLINE: THE KEY TO DE-ESCALATE, NOT SEEING ESCALATION ARE YOU FEELING THAT RENA? MIKE: THE U.S. HAS BEEN CALLING FOR DE-ESCALATION AND TRYING TO PUSH ISRAEL AND HAMAS, ANOTHER IRAN-BACKED TERRORIST GROUP AND HAS FULL AS WELL TO TRY TO -- HAS BELOW -- HEZBOLLAH TO DIFFUSE THE VIOLENCE. NEITHER GROUP HAS SHOWN SIGNS OF BEING WILLING TO TALK THIS OUT. OVERNIGHT WE SAW ISRAEL MOVING FORCES INTO SOUTHERN LEBANON, GROUND TROOPS TO CONDUCT WHAT IT CALLED LIMIT GROUND OPERATIONS. WE MAY BE HERE FOR A BIT.
THE U.S. IS CONCERNED ISRAEL MIGHT BE OVERREACHING. CAROLINE: WE ARE THE BLOOMBERG TECHNOLOGY SHOW. OFTEN WE ASSOCIATE ISRAEL WITH
ITS TECHNOLOGY PROWESS. HOW ARE WE SEEING THAT INDUSTRY AFFECTED? IS IT TOO SOON TO BE TALKING ABOUT THAT IN THIS CURRENT INSTANCE? MIKE: IT'S A GREAT QUESTION. WE SEE THE ECONOMIC IMPACT OF CONFLICT IN THE WAR IN UKRAINE, THE FALLOUT FROM THAT. THERE IS ECONOMIC FALLOUT HERE. IT IS EARLY TO TELL WHETHER
BUSINESSES ARE REALLY THINKING ABOUT WHETHER ISRAEL IS A GOOD PLACE TO BE. FOR THE TECH SECTOR, ISRAEL IS A SIGNIFICANT PLAYER. THE ISRAELI INNOVATION AUTHORITY SAYS IN CANCER AS MUCH AS 20% OF THE NATION'S ECONOMY. ISRAEL HAS A REPUTATION FOR BEING AN INCUBATOR OF STARTUPS, ESPECIALLY IN THE CYBERSECURITY AND FINTECH AREAS. WE WANT TO SEE HOW THEY ASSESS
WHAT HAPPENS NEXT WITH IRAN OVER THE NEXT FEW DAYS AND WEEKS AND MONTHS TO SEE WHETHER STABILITY HAS AN IMPACT ON THEIR OPERATIONS. CAROLINE: MY SHEPHERD, WE THANK YOU. LET'S KEEP TALKING ABOUT OTHER ECONOMIC NEWS IN THE UNITED STATES.
THE FALLOUT FROM DOCKWORKERS WALKING OUT OF EVERY MAJOR PORT ON THE U.S. EASTERN AND GULF COASTS. FOR THE FIRST TIME IN 50 YEARS. IT'S AFFECTING 36 PORTS WHICH HANDLES HALF OF ALL U.S. TRADE VOLUMES.
DANI BURGER JOINS US FROM NEW JERSEY AND THE LATEST IS A PUSHBACK AGAINST AUTOMATION AND A DESIRE FOR HIGHER WAGES HERE. DANI: THAT'S RIGHT. AT THE MOMENT WHAT WE KNOW OF WHAT IS BEING OFFERED,.
THE SIDES ARE STARTING. TO MOVE . THEY ARE STARTING TO COME CLOSER TOGETHER TALKS ARE ONGOING THEY HAVE NOT MET IN THE MIDDLE. THE DETAILS OF WAGES, THE MOST RECENT OFFER FROM THE EMPLOYER'S OF THE DOCKWORKERS, THE U.S. MARINE ASSOCIATION SAID THEY WERE OFFERING A 50% WAGE INCREASE. REPORTS SUGGEST THE DOCKWORKERS
THEMSELVES ARE NOW LOOKING FOR A 61.5% WAGE INCREASE FROM 77%. THEY ARE INCHING CLOSER BUT YOU ARE RIGHT. ONE OF THE LAST STICKING POINT IS AUTOMATION. IN THE UPDATE LAST NIGHT WHEN THE OFFERED THE 50% WAGE INCREASE THE EMPLOYER'S SAID THEY WOULD KEEP THE CURRENT LANGUAGE IN THE CONTRACT ABOUT AUTOMATION.
THE CURRENT CONTRACT PREVENTS THEM FROM EXPANDING ANY AUTOMATION. THERE'S A QUESTION IF THAT IS ENOUGH FOR THE DOCKWORKERS. PART OF THE DISAGREEMENT STARTED WHEN IT SEEMED LIKE A PORT IN ALABAMA WAS TURNED USE MORE AUTOMATION AND THE DOCKWORKERS SAID AS VIOLATING OUR CONTRACT -- THE DOCKWORKERS SAID THAT WILL -- CAROLINE: WE SAW THE ISSUES ON THE WEST COAST. WE HAVE SEEN THEM IN OTHER INDUSTRIES, WHETHER IT
COMES TO A PUSHBACK AGAINST AI AND HOLLYWOOD. HOW DO WE SEE THE CONTRACT CHANGE? DO WE SEE INABILITY TO STOP TECHNOLOGY MOVING FORWARD -- AN ABILITY TO STOP TECHNOLOGY MOVING FORWARD? DANI: MOST DOCS USE THIS TECHNOLOGY. THE EAST COAST IS BEHIND IN THIS REGARD. BOTH ASIA AND THE MAIN PORTS IN
AMSTERDAM USING THE AUTOMATED TECHNOLOGY. A LOT OF THE EMPLOYER'S WOULD POINT TO THE FACT THEY STILL HAVE DOCKWORKERS, THEY ARE CIVILLY DOING DIFFERENT JOBS INSTEAD OF LOADING AND OFFLOADING CARGO. THEY ARE WORKING IN AN OFFICE REMOTELY. THE DOCKWORKERS, THAT'S ALL WELL AND GOOD BUT YOU NEED GUARANTEES, NEED TO MAKE SURE PEOPLE ARE NOT LOSING THEIR JOBS AND THAT UPSCALING IS TAKING PLACE. THERE ARE PROPER MEASURES PUT IN PLACE SO THAT THE FOLKS CAN ADAPT TO THIS NEW REALITY. THERE ARE STUDIES THAT SHOW
AUTOMATION DOES NOT NECESSARILY SPEED THINGS UP. IT IS NOT A CLEAR-CUT THING. THEY SEEM TO BE AT LOGGERHEADS. IT IS TECHNOLOGY. IT MARCHES FORWARD.
IT MIGHT BE A HARD TIDE TO PUT BACK OUT TO SHORE. CAROLINE: DANI BURGER, THANK YOU. MICROSOFT HAS NEW FEATURES TO HIS COPILOT AI ASSISTANT. THIS IS "BLOOMBERG TECHNOLOGY." THIS IS BLOOMBERG. ♪
MICROSOFT IS ADDING VOICE AND VISION FEATURES TO ITS CONSUMER FOCUSED AI ASSISTANT TO DEMONSTRATE A PAYOFF FROM A HUGE INVESTMENT IN ARTIFICIAL INTELLIGENCE. DENA BASS JOINS US FOR MORE. WHAT MOST EXCITES YOU ABOUT THE UPDATES? >> THE THINGS THAT ARE MOST IN THE FORM OF AN UPDATE TO THE COPILOT CONSUMER APP THAT WILL START ROLLING OUT TODAY FOR THE IOS VERSION AND ANDROID VERSION AND STARTING TO TRY OUT A WHATSAPP VERSION. ONE OF THE MORE INTERESTING
THINGS THEY ARE ADDING OUR VISION FEATURES THAT ATTEMPT TO HAVE THE AI KNOW WHAT YOU ARE LOOKING AT WHEN YOU LOOK AT A WEBPAGE AND SUGGEST OTHER THINGS YOU MIGHT WANT TO DO, THE NEXT STEPS, ANSWER QUESTIONS, THINGS LIKE THAT. IT'S AN INTERESTING CONCEPT BUT A TRICKY ONE. YOU HAVE TO FIGURE OUT HOW TO DO THAT WHILE MAINTAINING PRIVACY AND SAFETY. WHAT THEY ARE DOING IN THE ORIGINAL PREVIEW VERSION THEY ARE PUTTING OUT IT'S A BIT LIMITED. IT'S ONLY FOR CERTAIN WEBSITES. IT WILL NOT SAVE YOUR DATA WHEN YOU SHUTDOWN THE APP.
IN THIS FEATURE AND IN GENERAL WHAT THEY ARE GOING TO HAVE TO BALANCE IS AI THAT ATTRACTS CONSUMER INTEREST BY BEING MORE PERSONAL, MORE OF WHAT A USER ONCE WHILE AT THE SAME TIME NOT CREEPING PEOPLE OUT OR VIOLATING THE PRIVACY. I TALKED TO THE CONSUMER AI CHIEF ABOUT THIS. WHAT HE REALLY WANTS IN ORDER TO ATTRACT CONSUMERS IS MORE EMOTIONAL -- MORE OF AN EMOTIONAL CONNECTION BUT IT'S A BALANCE. CAROLINE: THANK YOU. WE WILL TALK ABOUT THIS MORE
WITH YUSEF MEHDI FROM MICROSOFT. HOW DO YOU NOT FREAK PEOPLE OUT WITH HOW GOOD IT IS? DINA: DID IS CHANGING -- YUSEF: IT IS CHANGING QUITE A BIT TO AN ONGOING CONVERSATION WITH AN AI COPILOT. IT CAN HELP YOU WITH ALL MOST ANYTHING YOU ARE WORKING ON. CAROLINE: THE ENHANCEMENTS FROM A VISION, A VOICE PERSPECTIVE, AM I GOING TO FEEL LIKE I'M TALKING TO AN AGENT? CAN I OUTSOURCE MY DAY? YUSEF: WE ARE MOVING FROM AN AI TOOL TO AN AI COMPANION. A COMPANION IN THE SENSE THAT YOU CAN TRUST IT, IT'S MORE PERSONAL. WHEN YOU SPEAK WITH NEW COPILOT
VOICE WE ARE ANNOUNCING TODAY IT IS SO FAST AND VERY FLUID. YOU CAN INTERRUPT IT. IT IS NOT LIKE ALEXA AND SIRI. IT WILL HAVE A SENSE OF YOUR ENERGY AND PERSONALITY. IT WILL MATCH THAT TO YOU. IF YOU'RE NERVOUS ABOUT A BIG
TRIP OR PRESENTATION,. IT WILL COACH YOU THROUGH IF YOU'RE EXCITED ABOUT A KIDS BIRTHDAY PARTY BUT YOU NEED IDEAS, IT WILL HELP YOU. THAT VOICE AND FLUENCY WILL REALLY CHANGE HOW YOU USE AI. CAROLINE: ARE MORE PEOPLE ACTUALLY USING THE TOOLS YOU ARE BUILDING? YUSEF: WE HAVE SEEN MILLIONS OF PEOPLE SLOWLY USING IT FOR QUESTIONS. THAT GOES INTO HOW WE BUILD THE PRODUCT. WHAT WE ARE ANNOUNCING TODAY
WITH VOICE AND VISION IS GOING TO BE THE UNLOCK THAT WILL BE MAKING IT A NOVELTY TO SOMETHING THAT THE MAINSTREAM THAT WE USE EVERYDAY. CAROLINE: WE HAVE BEEN PROMISED THAT UNLOCK EVERY YEAR -- EVERYWHERE. I CAN GO TO WHATSAPP OR LOOKING AT A WHOLE NEW APP AND HAVING TO DOWNLOAD CHATGPT AND USE IT. WHY USE YOUR VERSION? WHAT IS IT LIKE IN TERMS OF COMPETING FOR CONSUMER TIME? YUSEF: GREAT POINT.
THE DIFFERENCE WILL BE YOU HAVE AN AI MODEL THAT IS SO MUCH FASTER. IT UNDERSTANDS YOU AND CONNECTS WITH YOU ANY MORE HUMAN WAY. THE SECOND THING IS THE VOICE, THE CONVENIENCE. IT IS ONE THING TO SAY WE ALL
LEARNED SPANISH IN HIGH SCHOOL,. PROFICIENT BUT NOT FLUENT THIS IS FLUENT. YOU CAN THINK AND ACT FOR YOU IF YOU GIVE IT SOME POINTS AND TIPS. THAT WILL CHANGE THE USE CASE FOR IT. CAROLINE:
WHY YOUR VERSION RATHER THAN OPENAI WHICH IS THE UNDERPINNING OF THE TECHNOLOGY YOU'RE MAKING? YUSEF: THERE ARE MANY GREAT OFFERINGS. WE TUNE IT A LITTLE BIT SO THAT IT WILL BE MUCH MORE PERSONAL, MUCH MORE CONVENIENT. WE LEAVE IT INTO THE SOFTWARE YOU USE. IN PARTICULAR ON WINDOWS WE ANNOUNCE A NEW CLASS OF PCS WHERE IT IS THE MOST ADVANCED AI ON IT.
YOU CAN NOW SEARCH YOUR PC WITH COMMON LANGUAGE. CAROLINE: AND OUR PEOPLE BUYING THIS PC'S BECAUSE OF THE AI COMPONENT? YUSEF: THEY ARE BECAUSE THEY ARE THE FASTEST PCS. WE TOOK THE HIGH GROUND BACK FROM MACBOOK. THEY ARE THE MOST ADVANCED AI. YOUR PHOTOS CAN NOW GET A HIGH-RES. YOU CAN SEARCH FOR ANYTHING ON YOUR DEVICE. YOU CAN RECALL ANYTHING YOU HAVE EVER SEEN ON THE DEVICE, A TOUGH THING. THERE'S A NEW FEATURE CALLED
CLICK TO DO. IF YOU SEE SOMETHING IN A YOUTUBE VIDEO, TELL ME ABOUT THAT. I'M I WANT TO BUY THAT. CAROLINE: THE NEW AI CO, HOW IS IT CHANGING HOW MICROSOFT RESENTS TO THE CONSUMER? YUSEF: MUSTAFA HAS A DEEP HISTORY WITH INCREDIBLE EQUITIES AND CONSUMER EITHER. HE'S HELPED -- ETHOS. HE IS HELPING HOW WE SHAPE AND BUILD PRODUCTS. IT'S AN INTERACTIVE WAY THAT YOU WORK WITH PRODUCTS.
NOT LIKE IN THE PAST THAT ARE ONES AND ZEROS. IT'S MORE HOW YOU ENGAGE WITH A CONSUMER WITH AN AI WHERE YOU CAN BRING THEM OUT, PROMPT WITH QUESTIONS, GUIDE. WE HAVE TO LEARN THAT HE'S BRINGING THE GREAT EXPERTISE TO THE COMPANY. CAROLINE:
THANK YOU, YUSEF MEHDI , CHIEF MARKETING OFFICER AT MICROSOFT. NOW THE GEOPOLITICAL NEW STORY TODAY. WE ARE OFF BY PERCENTAGE POINT ON THE S&P 500. NASDAQ A HUNDRED UP BY 1.6%. -- OFF BY 1.6%.
THE U.S. WHITE HOUSE UNDERSTANDING THAT MIGHT BE AN IMMINENT ATTACK ON ISRAEL FROM IRAN. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: NAI STARTUP TAKING ON NVIDIA AND HAS FILED FOR AN IPO IN THE VALUATION AS HIGH AS $8 BILLION. WE WANT TO DISCUSS IT WITH AMY OR. IT IS DEPENDENT ON HOW DEPENDENT THEY ARE ONE CUSTOMER. >> G 42 HAS ACCOUNTED FOR 87%, WHICH IS A FULL PERCENTAGE POINT HIGHER THAN LAST YEAR.
IT'S INTERESTING TO UNDERSTAND THAT G 42 IS A COMPANY THAT IS CLOSELY WATCHED BY THE DEPARTMENT OF HOMELAND SECURITY. IT'S NOT ONLY ABOUT THE COMPANY, THE SALES REVENUE BUT IT'S ALSO AN INVESTMENT IN THE COMPANY. THAT IS WHAT IT IS VERY WATCHED.
IF INVESTORS TAKE THAT THE HARDEST TO BE SEEN. CAROLINE: BY GO PUBLIC WHEN SALES ARE ONLY AT $136 MILLION? AMY: AI CHIPMAKING IS AT AN INTERESTING POINT IN TIME. IT IS BURNING A LOT OF CASH. IT NEEDS A LOT OF MONEY TO
ACTUALLY PUT INTO DEVELOPMENT AT THIS POINT. IT'S UNDERSTANDABLE THAT IT WILL ACTUALLY COME FROM CASH. A LOT OF TECH COMPANIES WANT TO MIX AND BEAT REVENUE TO BE PROFITABLE.
CEREBROS IS COMPETING WITH NVIDIA WHICH HAS HAD A GREAT RUN. IT HAS COME BACK UP AGAIN. THE VALUATION IS PRETTY GOOD AND WHAT EVERYONE IS LOOKING FOR. CAROLINE: AMY OR KEEPING A CLOSE EYE ON THAT IPO. THE NASDAQ 100 LOWER. INVESTORS SEEKING SAFE HAVENS AMID GROWING GEOPOLITICAL RISKS.
AS A BELLY -- IS ABOUT L -- ISABEL LEE. ISABEL: THE S&P 500 IS DOWN. INVESTORS ARE FLOCKING TO GOLD, BITCOIN. IT'S ALSO DOWN AND BACK OF THE $61,000 LEVEL. GOLD IS CLIMBING TO $2600. A LOT OF NEWS TODAY JUST HERE
AND WE HAVE EARLIER THIS MORNING A MIXED BAG OF ECONOMIC DATA. THE U.S. ISM PRICE FALLING BY THE LOWEST SINCE MAY OF 2023. THOSE ARE KIND OF AT ODDS WITH A LOT OF DATA INDICATING THE DEMAND FOR WORKERS IS SLOWING. WE HAVE DOCKWORKERS ON STRIKE AFFECTING ALMOST 36 PORTS. THERE'S BEEN A LOT OF SLIP IN ONE DAY.
YESTERDAY THE S&P HIT ITS 43RD RECORD AND TODAY YOU ARE SEEING EVERYTHING SINKING. CAROLINE: THAT IS THE CONTEXT. APPLE IS DOWN AND THERE SOME MICRO-NEWS AROUND THE APPLE 16 CONCERNS -- IPHONE 16 CONCERNS. THIS IS A KEY CONCERN, POTENTIAL EMINENT THREAT FROM IS WRONG TO ISRAEL -- IRAN TO ISRAEL. ISABELLE: THESE COMPANIES ARE SO BIG BUT ALSO THE RALLY HAS BEEN BROADENING. THEY ARE NOT SO MUCH AS MACRO EVENTS ANYMORE. NVIDIA, APPLE EARNINGS, CORPORATE NEWS, NOT AS BIG AS THE DEAL. A LOT OF THE DOCS ARE GETTING
MORE HEFT AND YOU PUT AGO CONFLICTS AND CRISES ARE JUST CENTERSTAGE ARE NOW MORE THAN BIG TECH. THEY ARE AWAY FROM THE SPOTLIGHT AND THERE ARE OTHER ISSUES NOW UNFORTUNATELY. CAROLINE: AND WHERE PEOPLE BUY DEFENSE STOCKS. THAT DOES SEEM TO BE AN AREA OF EQUITY OUTPERFORMANCE ON THE DAY. ISABELLE:
DEFENSE STOCKS ARE OUTPERFORMING ANOTHER STOCKS RELATED TO AI LIKE INDUSTRIALS OR ENERGY. IT IS REALLY JUST NOT THE ONLY GAME IN TOWN. YOU ARE RIGHT. WE ARE SEEING THAT RALLY, GAINS OR BROADENING AND WHO KNOWS HOW IT WILL END. THIS IS JUST ONE TWEAK THAT
STARTED UP AND IT'S A DOMINO FROM THERE. CAROLINE: NVIDIA OFF BY 3.5% WITH ITS ULTIMATE MACRO CAPITALIZATION. ISABELLE LEE, WE APPRECIATE THE MARKET WRAP. DON'T FORGET TO CHECK OUT OUR PODCAST. YOU CAN FIND IT ON THE TERMINAL AND ONLINE ON APPLE, SPOTIFY AND IHEART.
THIS IS BLOOMBERG TECHNOLOGY.
2024-10-02 12:49
