'Bloomberg Technology' Full Show (01/09/2023)
ED: -- CAROLINE: I'M CAROLINE HYDE AT ED: BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: APPLE RACING TO READY IN-HOUSE CHIPS AND IT HAS BIG INDICATION FOR ITS SUPPLIERS. WE WILL DISCUSS IN A MOMENT. ED: A BIG TECH RALLY LOSES STEAM AS FED OFFICIALS SIGNAL INTEREST RATES GOING ABOUT 5%. EARNINGS COME INTO FOCUS AS WELL AS CPI. SEMI CONDUCTORS OUTPERFORM. CAROLINE:
CHINESE STOCKS ROAR BACK AFTER SIGNS THE GOVERNMENT IS WINDING DOWN ITS TECH CRACKDOWN ON ONLINE GAMING AND INVESTMENTS IN FOREIGN ENTITIES. SO MUCH TO GET THROUGH. THE MARKET MOVES, WE KICK THEM OFF WITH THE MOVE -- A TORRID DAY FOR VOLATILITY. THAT'S PROBABLY LIKELY FOR MOST OF 2020 THREE. THE S&P 500 FALLS ON THE DAY AFTER HAVING BEEN UP A PERCENTAGE POINTS. OPTIMISM OF THE ECONOMY IN CHINA RECOVERING AND THE HOPE INFLATION MIGHT BE FADING. AS YOU MENTIONED, ALL ABOUT THE
CPI ON THURSDAY. LET THOSE TWO KEY FED OFFICIALS WE SEE THE LIKELIHOOD FROM BOSTICK AND MARY DALY SAYING COUNT ON US TAKING BACK THE INTEREST RATE FOCUS. THE NASDAQ MANAGES TO WITHSTAND THAT. TECH COMPANIES ON TOP. UP .6% ON THE DAY. WE HAD SEEN SOME WEAKNESS OF THE U.S. DOLLAR VERSUS THE ONE. WHAT WAS INTERESTING AS MONEY MOVING INTO THE CHINESE CURRENCY. JUST MANAGE TO ENCZ OUT ON THE
DAY EVEN THOUGH WE DID HEAR THE FED TALK TRY TO FIGHT BACK. A LITTLE BIT UNCHANGED ON THE DAY IN TERMS OF THE FOCUS ON THE YUAN, BUT IT HAD BEEN A STORY ABOUT OUTPERFORMANCE. WHERE WE HAVE SEEN OUTPERFORMANCE IS ON BITCOIN AND CRYPTO. WE DID FADE ON THE END OF THE DAY WHEN WE SAW THE COMMENTS COMING FROM THE TWO FED PARTICIPANTS, THE WORRY OF PULLING BACK IN TERMS OF OVERALL INFLATION PICTURE. IT REALLY DID GET ITS RALLY ON ALL BECAUSE OF CHINA. ED: CHINA A BIG STORY WHEN IT CAME TO INDIVIDUAL NAMES. ALIBABA LEADING THE RALLY IN
THE U.S. LIST OF SHARES OF TECH STOCKS. THE NEWS BEING A CENTRAL BANK OFFICIAL IN CHINA SAYING BASICALLY THE TWO-YEAR CLAMPDOWN FROM A REGULATORY PERSPECTIVE ON TECH IS COMING TO AN END. YOU SAW ALIBABA JUMP ON THAT AS WELL AS NEWS THAT THE FINANCIAL AFFILIATE OF ALIBABA HAS INSTALLED INDEPENDENT WITH VOTING RIGHTS. THE MEME STOCK WARRIORS ARE BACK. TESLA CAUGHT UP IN THE REOPENING TRADE, PART OF A
REBOUND WE HAVE SEEN BECAUSE IT HAD A TORRID END TO 2022. A MD LEADING THE OUTPERFORMANCE WE SAW IN SOME CONDUCTORS. WELLS FARGO SAYING A MD IS THE TOPIC. THE BLOOMBERG SCOOP ABOUT APPLE, IT WANTS TO MOVE AWAY FROM QUALCOMM TO IN-HOUSE DESIGNED CHIPS AS SOON AS 2000 24 AND 2000 25. YOU CAN SEE THE IMPACT IT HAD ON THE STOCK -- BROADCOM WAS DOWN AS MUCH AS 5%. QUALCOMM, MORE MUTED DECLINES.
THIS IDEA APPLE WOULD GO IN-HOUSE HAS BEEN TALKED ABOUT FOR A WHILE. CAROLINE: MAYBE IT IS THE PACE THAT CATCHES PEOPLE OFF GUARD. WE WANT TO DIG INTO THAT SCOOP BECAUSE IT DID MOVE MARKETS. MARK GURMAN WAS THERE WITH THE STORY. LET'S TALK ABOUT WHAT IS NEW.
IT IS -- IS IT THE PACE AT WHICH THEY ARE DOING IT? MARK: WE HAVE KNOWN FOR SOME TIME APPLE WOULD BE MOVING AWAY FROM QUALCOMM FOR CELLULAR MODEMS. THE QUALCOMM CHIP ALLOWS THE PHONE TO CONNECT TO DATA NETWORKS SO YOU CAN MAKE PHONE CALLS, BASICALLY DO WHATEVER YOU NEED TO DO WHEN YOU ARE AWAY FROM WI-FI. WE ALSO NOTE THE TIMING OF THAT, THAT WILL BE THE END OF 24, EARLY 25. IT WILL START IN ONE IPHONE MODEL AND TAKE THREE OR FOUR YEARS FOR THE TRANSITION TO OCCUR. THE MAIN NEW PIECE OF
INFORMATION IS IN ADDITION TO WORKING ON ITS OWN CELLULAR MODEM, APPLE IS WORKING ON ITS OWN WI-FI CHIP. THAT IS THE BROADCOM COMPONENT THAT ALLOWS THE IPHONE AND OTHER DEVICES TO CONNECT TO WI-FI AND THIS IS A COMBINED CHIP, SO IT LET'S THE PHONE CONNECT TO BLUE TOOTH AS WELL. THE COMPONENT ALLOWS YOU TO CONNECT TO WIRELESS AND BLUETOOTH, SO THEY WANT TO OWN THE WIRELESS STACK INSIDE ITS PRODUCTS. CAROLINE: HOW IS THE RELATIONSHIP BETWEEN
THE TWO COUNTRIES? WHAT ARE THEY SAYING ABOUT BRACING FOR A FUTURE RELATIONSHIP? MARK: THE APPLE-QUALCOMM RELATIONSHIP HAS BEEN DWINDLING DOWN FOR SOME TIME. QUALCOMM HAS BEEN SAYING PUBLICLY IT EXPECTS APPLE TO DESIGN THEM OUT OF ITS PRODUCTS. THERE WAS A MAJOR LAWSUIT OVER PATENTS AND ROYALTIES AND APPLE SETTLED THAT BECAUSE IT NEEDED AND -- IT NEEDED A 5G PHONE AND THERE WAS NO WAY TO COME TO MARKET WITH A 5G DEVICE UNLESS THEY USED QUALCOMM. SO IT WAS A SIX-YEAR LICENSING AGREEMENT AND A FOUR OR FIVE YEAR SUPPLY AGREEMENT FOR THE QUALCOMM MODEMS. BROADCOM AND APPLE SIGNED A $15 BILLION DEAL
A COUPLE OF YEARS AGO THAT EXPIRES AT THE END OF THIS YEAR. THAT IS AN INDICATOR THERE HAD BEEN SOME TRIALS AND TRIBULATIONS BETWEEN THE TWO COMPANIES AND WE KNOW IT IS CLEAR APPLE IS PLANNING TO DESIGN BROADCOM L. LOOK AT ANY MAJOR SUPPLIER OF COMPONENTS AND YOU CAN BET APPLE WANTS TO WORK ON ITS OWN IN-HOUSE, CUSTOM SOLUTION. ED: WE HAD TO COMPLETELY RIP UP THE SCRIPT FOR THE SHOW TODAY BECAUSE YOU HAVE BROKEN ONE STORY AFTER ANOTHER. YOUR OTHER SCOOP WAS PETER STERN, THE SERVICES VP IS LEAVING THE COMPANY, ACCORDING TO SOURCES.
WHY IS THAT SIGNIFICANT? MARK: THIS IS HUGELY SIGNIFICANT. PETER STERN WAS A QUICK RISER AT APPLE, HE WAS THE DRIVING FORCE BEHIND APPLES SUBSCRIPTION BUSINESS. HE LED THE BUSINESS SIDE OF APPLE TV PLUS, APPLE ARCADE, APPLE NEWS PLUS, APPLE FITNESS PLUS AS WELL AS THE MARKETING SIDE OF ALL APPLE SERVICES. HE SPEARHEADED BUNDLES FOR CONTENT WITHIN APPLE TV PLUS, THE CHANNELS SERVICE BUT ALSO THE APPLE ONE BUNDLES. HE WAS THE BRAINS BEHIND THIS PUSH IN SERVICES THAT HAS MADE IT ONE OF THE MOST IMPORTANT COMPONENTS OF THE COMPANY'S OVERALL BUSINESS. NOW HE'S LEAVING. THAT WILL RAISE THE PROFILE OF
THE HEAD OF APPLE MUSIC AND HE WILL BE TAKING ON MUCH OF THE RESPONSIBILITIES OF STERN AND YOU CAN SHOOT HIM IN AS THE EVENTUAL SUCCESS FOR -- SUCCESSOR FOR EDDIE Q WHO HAS BEEN A TOP EXECUTIVE, A VERY SENIOR LIEUTENANT, A TOP 3-5 PERSON UNDER STEVE JOBS AND NOW UNDER TIM COOK. ED: I JUST GOT BACK FROM CES LAS VEGAS AND YOU AND I HAVE WRITTEN ABOUT THIS -- APPLE WAS NEVER THERE, NOT NORMALLY IN RECENT YEARS, BUT THERE WAS A BIG DISCUSSION AROUND A RVR. THERE WAS A DISCUSSION IN YOUR NEWSLETTER LOOKING AT 2023. THIS WILL BE A BIG YEAR FOR APPLE IN AR-VR. MARK: APPLE'S NEXT BIG THING IS A MIXED REALITY HEADSET.
THEY HAVE BEEN WORKING ON THIS FOR ABOUT SEVEN YEARS. THEY WILL INTRODUCE IT SOMETIME THIS SPRING, TALK MORE ABOUT IT AT THEIR DEVELOPER CONFERENCE IN JUNE AND RELEASED TO CONSUMERS IN THE FALL. THIS IS A BIG YOUR -- A BIG YEAR FOR APPLE IN TERMS OF AR/VR. CAROLINE: THE PRICE POINT -- WHERE WE EXPECTED, $3000? MARK: IT IS AN EARTH SHATTERING PRICE POINT. IT IS GOING TO BE EIGHT TO 10 TIMES MORE EXPENSIVE THAN THE COMPETING PRODUCT FROM META, BUT IT'S ALSO PROBABLY GOING TO BE EIGHT TO 10 TIMES BETTER, SO IT IS UP TO WHAT CONSUMERS WANT TO DO WITH THAT. ED: MARK GURMAN BREAKS STORIES
EVERY HOUR OF THE DAY. AR/VR HAS BEEN TOP OF MIND FOR A FEW DAYS. I WAS AT CES WHERE OBVIOUSLY THE LATEST CONSUMER GADGET, THAT'S THE NEXT GENERATION PEOPLE ARE LOOKING TO. YOU HAVE HAD YOUR OWN BIT OF FUN IN THE REALM OF AR/VR.
CAROLINE: AND I ARRIVED ON MY CITY BIKE. I DID HAVE IT ON IN MY CYCLING OUTFIT BUT I GOT TO PLAY WITH THE QUEST PRO. YOU HAVE LAID HANDS ON THE QUEST TO. I HAPPEN TO HAVE IT AT MY HOME
BUT I HAVE NOT -- CHECK OUT THE VIDEO. YOU JUST SAW ME STANDING UP, BASICALLY I WAS A DJ THIS MORNING. ED: IS THIS A GAME? CAROLINE: IT IS ALL IMMERSED WITH THIS IDEA OF YOU ARE BEING TAUGHT HOW TO BE A DJ. THEN I SAT DOWN AND MORE FOCUS ON HORIZON WORKSPACE. THIS IS WHERE META WANTS TO GET
YOU EXCITED, HOW THE FUTURE OF WORK ROOMS AND IS INTERACTING AT WORK MIGHT DIFFER. I HAVE TO SAY I WAS IMPRESSED. BEFORE ANYONE IS CRITICAL OF THINGS LIKE AN FTS PUT THINGS LIKE PELOTON, THINGS LIKE THE METAVERSE AND VR, YOU'VE GOT TO PLAY WITH THESE THINGS BEFORE YOU CAN HAVE ANY VIEWPOINT AND I LIKE THE FACT THAT I COULD BE SAT WITH JUST A SMALL COMPUTER AND THROUGH THE WONDER OF VR AND AR, I COULD HAVE SURROUND SCREENS. I COULD BE HAVING A BEAUTIFUL VIEW WHILE I WORKED. IT'S LIKE IF YOU ARE GOING TO
BE IN AN AIRBNB AND HAVE A SMALL OFFICE, YOU COULD DO IT TO A WONDERFUL DEGREE. ED: FOR ME, IT COMES DOWN TO THE PRICE POINT. $3000 FOR THE APPLE A RVR HEADSET. I HAVE EXPERIENCED IT DOWN IN EAST PALO ALTO.
I DID FEEL A BIT DISORIENTED, BUT FOR ME, WHAT WAS AMAZING IS THAT WORK OUT. I META BULLETS ON USER AND THE LIGHTSABER GAMES IS ONE OF THE BETTER EXPRESSIONS. A REALLY INTERESTING WORKOUT, SWEATING -- WE WILL DIG OUT THAT FOOTAGE FOR ANOTHER TIME. IF YOU ARE WATCHING THIS, WORKING IN THE REALMS OF AR/VR, GET IN TOUCH. COMING UP, WHAT TO WATCH IN
TECH THIS YEAR. TWO FED OFFICIALS SHARING SOME TRADERS AFTER SIGNALING INTEREST RATES COULD TOP 5%. WE WILL TALK ABOUT THIS NEXT. THIS IS BLOOMBERG. ♪
CAROLINE: WE STARTED OFF THE SHOW BY TELLING YOU A PRETTY VOLATILE DAY IN TRADING WHEN YOU ARE LOOKING, TECH STOCKS MANAGING TO WHETHER THE SELLOFF AND SOME OF THE CONCERNS ABOUT WHETHER THE FEDERAL RESERVE IS INTENT ON HIKING RATES ABOVE 5% AND MANAGED TO BE GALVANIZED EITHER REOPENING STORY FROM CHINA. BUT WHAT ABOUT THE REST OF 2020 THREE? LET DIG IN. GREAT TO HAVE SOME TIME WITH YOU. WHAT SCOPE BROAD TO START THE WHOLE CONVERSATION. WHEN YOU LOOK AT TODAY'S TRADING AND PERSPECTIVE OUT TO WHAT 2023 IS GOING TO LOOK LIKE, ARE YOU BULLISH, ARE YOU BEARISH? EMILY: I WOULD CLASSIFY MYSELF AS BEARISH. BUT I THINK THAT'S THE
CONSENSUS RIGHT NOW. I DON'T THINK THERE'S ANYTHING TERRIBLY REVOLUTIONARY ABOUT SAYING THAT. IN THE TECH SECTOR, WE ARE AT THAT AND COME WE HAVE ESSENTIALLY HAD A BUBBLE BURST THAT HAD BEEN BUILDING FOR TWO OR THREE YEARS. I STARTED IN THIS BUSINESS IN THE EARLY 2000, SO I HAVE A VERY VIVID MEMORY OF WHAT HAPPENED IN THOSE YEARS AFTER THE FIRST TECH BUBBLE BURST. THERE'S SOME REAL GOOD NAMES IN
THE TECH SECTOR, BUT I WOULD BE VERY SURPRISED TO SEE A QUICK, HAPPY REBOUND. YOU'VE GOT TO BE VERY SELECTIVE IN THE SECTOR. CAROLINE: EVERYONE YOU HAVE TALKED TO KEEPS REFERENCING THE INTEREST RATE ENVIRONMENT. IS THAT THE STORY FOR YOU NOW?
DO WE THINK ENOUGH OF THE PRICES AND OVERALL VALUATIONS HAVE THINNED OUT ENOUGH THAT IT IS LESS ABOUT THAT AND MORE ABOUT INDIVIDUAL STORIES AND STOCKS? EMILY: I THINK THE INTEREST RATE INCREASES FOR THE MOST PART HAVE BEEN PRICED IN. YOU LOOK AT A COMPANY LIKE AMAZON OR FACEBOOK OR SHOPIFY. THEY SPENT WITH ABANDON AND INCREASE THEIR WORKFORCE. NOW REALITY IS HITTING AND CAPITAL IS MUCH MORE EXPENSIVE.
WE ARE SEEING THE LAYOFFS AND SLOW DOWN IN SPEND AND WHILE I THINK THE WORST IS BEHIND US AND LARGE PARTS OF THE TECH SECTOR, APPLE, MICROSOFT, THAT ARE PROBABLY FAIRLY VALUED. I DON'T THINK WE ARE GOING TO SEE THE KIND OF GROWTH RATES WE SAW OVER THE LAST 10 YEARS OVER THE NEXT 10. THESE ARE PREMIUM COMPANIES. I'M NOT SUGGESTING ANYONE GO SELL THEIR APPLE OR MICROSOFT. IT'S PROBABLY A GOOD TIME TO GRADUALLY ACCUMULATE IT. DON'T EXPECT THE NEXT FIVE
YEARS TO BE LIKE THE LAST FIVE. ED: CAROLINE AND I WOULD LIKE TO GET INTO THE SPECIFIC NAMES AND SUBSECTORS IN A MOMENT, BUT THERE IS THIS IDEA IN THE COMING WEEKS WHEN WE GET FORTH QUARTER EARNINGS, IRRESPECTIVE OF THE TERMINAL RATE, WE ARE BRACING FOR THIS EARNINGS RECESSION. I WAS LOOKING ON THE BLOOMBERG TERMINAL AND I THINK THE CONSENSUS IS FOR EARNINGS TO DROP 2% OR 2.2% THIS YEAR. IS AN EARNINGS RECESSION AS OPPOSED TO AN ECONOMIC RECESSION THE BIGGEST RISK TO TECH RIGHT NOW? EMILY: I AM EXPECTING AN EARNINGS RECESSION. INTEREST RATES HAVE INCREASED SO QUICKLY -- THE FED RAISED SEVEN TIMES IN 2022 AND TAKES TIME FOR THAT TO TRICKLE THROUGH TO EARNINGS. SO I THINK WE WILL HAVE SOME EARNINGS DISAPPOINTMENTS. WE WILL SEE THAT THROUGH THE
FOURTH ORDER REPORTING SEASON. I SHARE THE CONSENSUS VIEW. THE ONLY THING THAT IS ALARMING TO ME IS TYPICALLY, WHEN THERE IS THIS MUCH OF A CONSENSUS, IT IS WRONG. SO IT DOES GIVE ME SOME PAUSE. ED: LET'S GET TO SOME OF YOUR TOP PICKS TO -- FOUR 2023. THE NAMES THAT JUMP OUT AT ME ARE NOT JUST THE CHIPMAKERS BUT CHIP EQUIPMENT MAKERS. WE ARE SHOWING LAM RESEARCH, TSMC -- IS THERE A BROAD RULE OF THUMB YOU ARE APPLYING TO THOSE NAMES? EMILY: YES.
LAM RESEARCH AND TERADYNE HAVE SIMILAR COMPETITIVE DYNAMICS. THINK OF THEM AS BEING THE EQUIPMENT SERVICES OF TECH, THE WAY SCHLUMBERGER IS THE SERVICES OF THE ENERGY SECTOR. THEY ARE GOING TO BE MORE RESILIENT IN THIS VERY CYCLICAL BUSINESS. THEY ARE A LITTLE LESS AFFECTED
BY THE DECISIONS LIKE THE ONE APPLE JUST MADE. THEY HAVE HIGH BARRIERS TO ENTRY BECAUSE THE AMOUNT OF CAPITAL THAT HAS TO GO INTO BUILDING SOME OF THIS EQUIPMENT IS VERY SUBSTANTIAL. THEY ARE VERY WELL-MANAGED COMPANIES WITH STRONG CASH FLOW, WITH STRONG BALANCE SHEETS, THAT ARE VERY DISCIPLINED AND THEY HAVE HAD TO BE IN AN INDUSTRY LIKE THIS. THEY ARE COMPANIES TO OWN, COLLECT DAY DIVIDEND, AND WAIT FOR SOME OF THESE SEMICONDUCTOR ISSUES TO WORK THEIR WAY THROUGH.
IT WAS A TERRIBLE YEAR LAST YEAR, DOWN 33% OVERALL FOR THE SECTOR, SO THERE'S DEFINITELY VALUE THEIR IF YOU ARE SELECTIVE. CAROLINE: A LOT OF GEOPOLITICAL RISK WRAPPED UP IN THAT. WE HAVE TALKED THROUGH BEING CAUTIOUS BUT STILL HOLDING ON TO THE MICROSOFT AND APPLE, BUT TALKING ABOUT THE AREAS YOU ARE LOOKING AT BUYING INTO, WHY -- WHAT SHOULD YOU BE AVOIDING AT ALL COST? EMILY: THIS IS RISKY TO SAY BUT SOME OF THESE IPO'S -- WE CALL THEM BROKEN IPO'S. I'M SURE MANY PEOPLE USE THAT TERM. THERE WERE A LOT OF TECHNOLOGY COMPANIES THAT IPO'S IN 2020, TO BE ONE, TO BE TOO THAT I THINK HAVE A LONG ROAD TO RECOVERY. IT DOESN'T MEAN THEY ARE NOT GOOD COMPANIES.
-- 2020, 21, 22, THAT I THINK HAVE A LONG ROAD TO RECOVERY. I WOULD PROBABLY AVOID THOSE COMPANIES NOW. I WOULD WAIT. THERE'S GOING TO BE A BETTER ENTRY POINT DOWN THE ROAD. ED: THAT IS INTERESTING. THE FOUNDING PARTNER OF BAUER
STOCK CAPITAL PARTNERS. I WAS LOOKING AT MY BLOOMBERG -- VOLUNTEER, NOT THE BEST YEAR -- THE EV MAKERS WERE THE WORST PERFORMERS ON THE NASDAQ 100. SHE'S SAYING STILL NOT THE TIME. WE WILL BE RIGHT BACK WITH TODAY'S TOP TECH CALLS. THIS IS BLOOMBERG. ♪ ED:ED: TIME FOR YOUR TALK -- TOP TECH CALLS, STARTING WITH JEFFRIES PLACING UBER AS A BUY AS THEY SEE IMPROVING SENTIMENT ON THE COMMITTEES PROFITABLY. JEFFRIES DROPPED DOORDASH TO AN UNDERPERFORMING LIFT TO HOLD.
ORACLE, AS ITS CLOUD TRANSFORMATION TAKES HOLD, FISCAL TO MIGHT BE A WATERSHED YEAR FOR THE COMPANY WITH GROWTH AND OPERATING PROFITS AND EARNINGS-PER-SHARE ACCELERATING TO MORE THAN 10%. TESLA -- AUTO STOCK INVESTORS HAD A ROUGH YEAR AS THE INDUSTRIES SUFFERED THROUGH SUPPLY CHAIN DISRUPTIONS AND INVENTORY BALANCES. BANK OF AMERICA CUTTING ITS PRICE TARGET FOR THE EV MAKER FROM 275 TO 100 $35 AND REITERATING A NEUTRAL RATING. CAROLINE: THOUGH TESLA MANAGED TO BE RALLYING ON THE DAY. WE WANT TO DIG INTO TESLA PRICE CUTS -- LET'S TALK ABOUT THE RAMIFICATION THE ACTUAL CAR, PARTICULARLY IN CHINA. THEY HAVE BEEN CUTTING PRICES OVER THERE. SHOWROOMS HAVE BEEN OVERWHELMED
NOT WITH POTENTIAL BUYERS BUT PROTESTERS. PEOPLE GOING AND SAYING YOU HAVE TAKEN DOWN THE PRICE, WHAT ABOUT ME? WHAT ABOUT THE AMOUNT I JUST PAID FOR MY RECENTLY PURCHASED ELECTRIC VEHICLE? WHAT WAS IT 14% THEY CUT LAST WEEK? THE SECOND TIME IN FOUR MONTHS. NOT ONLY ARE THEY WAY CHEAPER TO BUY IN CHINA THAN THE U.S., BUT YOU WOULD BE ANNOYED IF YOU JUST PURCHASED ONE AT A HIGHER PRICE POINT. ED: SECOND OR THIRD CUT SINCE OCTOBER, SECOND RECENTLY -- THE EXECUTIVES HAVE TAKEN TO TWITTER TO SAY THESE ARE THE LOWEST THEY HAVE EVER BEEN AND WHAT IS FASCINATING IS THE DISCOUNT TO U.S. SALE PRICES, 30% TO 40%. THEY ARE BASICALLY SAYING WE MISSED THE BOAT, WE WANT AND.
DOESN'T WORK LIKE THAT. CAROLINE: I REMEMBER WHEN I BOUGHT MY PRICE PELLETS AND. IF WE WENT BACK TO THE DEPTHS OF COVID AND THOUGHT ABOUT SUPPLY CHAIN HEADACHES, WE WERE SPENDING ABOVE AND ED: BEYOND. ED:IF WE HAD A CRYSTAL BALL. CAROLINE: I'M NOT RUNNING BACK TO PELOTON SAYING I WANT MY MONEY BACK.
BUT I CAN UNDERSTAND THE FRUSTRATION. ED: NOW PAW TONSILS UP WITH MORE INCENTIVES, TRYING TO SELL THE MORE EXPENSIVE HARDWARE. ON THE EV SIDE, THERE ARE MORE MANY -- THERE ARE MANY MORE PLAYERS IN CHINA THAN THE U.S. -- BYD RAISED PRICES AND HAD A RECORD QUARTER FOR DELIVERIES. CAROLINE: WHAT'S THE PRICE POINT DIFFERENTIAL FOR A BYD VERSUS TESLA? ED: NOT THAT HUGE A PREMIUM OF A MERCEDES BUT THERE'S MORE CHOICE FOR THE CONSUMER.
IN THE U.S., THE PRICE RANGES MUCH SMALLER. CAROLINE: COMING UP, WE'VE GOT SO MUCH -- CHINA COULD BE EASING ITS TECH CRACKDOWN AS THE COUNTRY FEELS THE HEAT FROM A PRETTY AGGRESSIVE U.S. PUSH INTO CHIPMAKING. WE WILL DISCUSS THAT AND MORE. THIS IS BLOOMBERG.
♪ CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE ALONGSIDE IN THE FLESH MR. ED LUDLOW. WHAT WE ARE GOING TO DO IS TALK LOCAL. ABOUT THE PAGE POTENTIALLY BEING TURNED IN CHINA. THE HANG SENG TECH INDEX JUMPED
AFTER A TOP CENTRAL BANK OFFICIALS OF THE KLEPTO ON THE INTERNET SECTOR IS DRAWING TO A CLOSE. ALIBABA LED THE RALLY. THE DROP SEEMS TO HAVE STEMMED FROM REGULATORY SCRUTINY ON DATA PROTECTION AND ONLINE GAMING AND THE GOVERNMENT PUSH TO UNTANGLE INVESTMENTS IN CERTAIN FIRMS. LET'S THINK OF THE POSTER CHILD -- JACK MA. HE'S GIVING UP A CONTROLLING RIGHTS OF THE FINTECH PART OF HIS GROUP, A SIGN HE'S RETREATING FURTHER FROM HIS ONLINE EMPIRE FOLLOWING CHINA'S TECH CRACKDOWNS. SINCE GIVING A SPEECH THAT
CRITICIZED CHINESE REGULATORS, JUST THINK THAT HUGE SCUTTLING OF THE AND LISTING STILL HAVING REPERCUSSIONS. ED: A CATALYST FOR U.S.-LIFTED TECH SHARES IN THE FACT THAT THEY APPOINTED INDIVIDUALS WITH THEIR OWN VOTING RIGHTS, TAKING IT OUT OF JACK MA'S HANDS. BEIJING IS SPENDING BIG MONEY
AS THE U.S. PUSHES FOR MORE SEMI CONDUCTOR MANUFACTURING SHARES. THAT INCLUDES THE PASSAGE OF THE CHIPS ACT WHICH WROUGHT -- WHICH BROUGHT MORE TO U.S.-MADE CHIPS. AS WELL AS AN EMBARGO ON CHINESE EXPORTS.
WE HAVE TALKED A LOT ABOUT U.S. POLICY TO RESTRICT CHINA'S ACCESS TO CHIPMAKING EQUIPMENT AND THE LATEST GENERATION OF CHIP TECHNOLOGY. MY QUESTION IS WHAT HAS CHINA'S RESPONSE BEEN? WHAT HAS CHINA'S POLICY BEEN TO ADVANCE THEIR OWN SEMI CONDUCTOR INDUSTRY? >> THAT'S A GOOD QUESTION. THE WAY TO THINK ABOUT IT IS THINK ABOUT WHAT SOUTH KOREA AND TAIWAN DID. IT TOOK 30 YEARS TO GET TO THE POSITION WE ARE AND WHERE SAMSUNG IS THE WORLD'S LARGEST CHIPMAKER.
CHINA HAS BEEN FOLLOWING THAT PATH. UNFORTUNATELY, THE U.S. ARE NOT SUPPORTING CHINA IN THE WAY THEY SUPPORTED TAIWAN AND SOUTH KOREA AND THEREFORE CHINA HAS GOT TO THIS POINT WHERE THEY SPEND BILLIONS AND HAVEN'T GOT TO THE POINT WHERE THEY CAN DO THINGS LIKE WITHSTAND THESE RESTRICTIONS THE AMERICANS ARE PUTTING UPON THEM. THEY ARE AT A POINT WHERE THEY ARE HAVING TO REEVALUATE HOW THEY ARE GOING TO PURSUE THIS GOING FORWARD AND PERHAPS TAKE AN EVEN LONGER APPROACH TO GAIN THAT INDEPENDENCE THEY SO DESPERATELY CRAVE. ED: THIS IS ONE OF THE MOST READ STORIES ON THE BLOOMBERG TERMINAL. IN THAT CORNER, THEY ARE NOT JUST THROWING MONEY AT THIS, THOUGH THEY ARE TO A LARGE EXTENT. IT IS A POLICY ACTION, WHERE THEY ARE SAYING TO CHINA'S STATE AND PRIVATE ENTERPRISES YOU GUYS HAVE TO FIND US A TECHNOLOGICAL SOLUTION. IAN:
IT HAS BEEN A VACILLATING POLICY. THEY'VE PUT ALIENS TO WORK AND THEN THEY FOUND THEY DID NOT REALLY GET WHAT THEY WANTED AND HAVE GONE AFTER SOME OF THOSE PEOPLE WHO HAVE BEEN IN CHARGE OF IT AND SAID WE HAVE WASTED MONEY. IT'S REALLY NOT CLEAR WHAT THEY CAN DO AT THIS POINT BECAUSE SOME OF THOSE KEY CHOKEPOINTS IN THE HANDS OF THE AMERICANS UNLESS THEY CAN GET THE TECHNOLOGY FROM AMERICANS, THEY ARE GOING TO STRUGGLE AND IT'S GOING TO BE A LONG ROAD TO TO MASTICATE THAT AND TAKE IT TO A POINT WHERE THEY ARE SUBJECT TO EXTERNAL FACTORS. CAROLINE: I FEEL LIKE IT WAS THE BEGINNING OF LAST WEEK WHERE SOME U.S. CHIP COMPANIES GOT A BID HIGHER
BECAUSE THERE WAS TALK OF CHINA GIVING UP, TAKING ITS FOOT OFF THE ACCELERATOR WHEN IT CAME TO CHIP MANUFACTURING. ARE THESE RUMORS GOING TO CIRCULATE IN SUCH A WAY? IAN: WE'VE GOT ALL KINDS OF RUMORS AND SPECULATION GOING ON, INCLUDING OUR OWN REPORTING, SAYING WHAT ARE THE EUROPEANS GOING TO DO? WHAT ARE THE JAPANESE GOING TO DO? IS THIS SITUATION GOING TO BECOME MORE EXTREME? ON THE FLIPSIDE SIDE, SOME U.S. COMPANIES DON'T LIKE THE FACT THEY ARE BEING LOCKED OUT OF THE WORLD'S LARGEST MARKET AND ARE LOBBYING AGAINST IT. A LOT OF EBB AND FLOW IN TERMS OF CONVERSATIONS IN WASHINGTON ABOUT HOW THIS IS GOING TO PLAY OUT, WHETHER WE SEE EASING MORE AND INCREASING CLAMPDOWN ON CHINA AND POTENTIAL CONSEQUENCES WE WILL SEE IN THE MARKETPLACE. CAROLINE: GET US UP TO SPEED WITH CHINA'S FOCUS MORE BROADLY AND TECHNOLOGY BECAUSE WE TALK HERE OF THEM CLEARLY DEFINING AND WANTING TO DOUBLE DOWN AND ENSURE THEY CAN TAKE CHIP MANUFACTURING. IN THE SAME BREATH, WE ARE TALKING ABOUT JACK MA WHO HAS BEEN IN EXILE SINCE HE SPOKE OUT AGAINST THE CHINESE REGULATORS AND MANY OF THESE BILLIONAIRES HAVE BEEN FORCED TO SELL DOWN THEIR OWNERSHIP AND REDUCE THEIR BILLIONS. HOW DO YOU THINK CHINA SITS
WITH ITS TECHNOLOGY RIGHT NOW? IAN: I THINK IT IS A FLUID SITUATION. I WAS SPEAKING TO A CEO WHO SAID HE'S CONCERNED THE LEADERSHIP IN CHINA IS DISILLUSIONED WITH WHAT ELECTRONICS, SEMI CONDUCTORS AND THE INTERNET HAS DONE FOR THEIR ECONOMY AND HASN'T HELP THEM. HE IS CONCERNED THERE IS GOING TO BE A TURNING AWAY FROM THIS AND THEY WILL GO BACK TO HEAVY INDUSTRY OR SOMETHING ELSE TO CARVE OUT AN ECONOMIC NICHE FOR CHINA. THE OTHER SIDE IS PERHAPS CHINA IS LEARNING ITS LESSON, THAT IT NEEDS TO PLAY BETTER IN THE WORLD ECONOMY AND FOR THESE INDUSTRIES TO FLOURISH. WE WILL SEE A NEW YEAR OF COOPERATION.
HARD TO SAY WHICH WAY IT'S GOING TO GO, CERTAINLY IN THE DECISION-MAKERS WE ARE TALKING TO SEEM TO FEEL WE ARE PURSUING A HARD LINE WITH CHINA FOR THE FORESEEABLE FUTURE. ED: I'M SURE YOUR HEAD IS SPINNING FROM THE HEADLINES THAT HIT THE BLOOMBERG THIS MONDAY FROM MARK GURMAN. THE KEY HEADLINE THAT MOVED MARKETS WAS APPLE IS GOING TO MOVE TO USE IN-HOUSE TECHNOLOGY IN PLACE OF BROADCOM AND QUALCOMM CHIPSETS AND MODEMS GOING FORWARD. WE GOT MARK'S TAKE ON THE APPLE SIDE. WHAT'S THE CHIPMAKER TAKE ON THIS SIDE OF THE STORY? IAN: THE QUICKTAKE FOR QUALCOMM IS THEY HAVE BEEN TALKING ABOUT THIS FOR A WHILE. THEY HAD ACKNOWLEDGED IT AND
SAID IT'S A MATTER OF TIME, WE WILL ENJOY IT WHILE IT LASTS AND IT HAS LASTED A BIT LONGER THAN WE THOUGHT. ON THAT SIDE, NOT SO MUCH OF A SHOCK. ON THE BROADCOM SIDE, THE CEO IS TALKING ABOUT HOW GOOD THEIR WI-FI CHIPS WERE AND WHY WOULD YOU GO ANYWHERE ELSE? THIS IS MORE OF A SHOCK FOR THEM AND SOMETHING ANALYSTS AND INVESTORS WILL FOCUS ON MORE HEAVILY. CAROLINE: GIVING THE FASHION TIP -- YOU GUYS, NICE SEAT OF GLASSES, NO TIME TO DIE -- THANK YOU SO MUCH. WHILE YOU ARE HERE, LET'S TALK ABOUT OUR FAVORITE THING, LET'S THINK ABOUT EVEY'S A LITTLE MORE. WHEN IT COMES TO CHINA, LET'S
INTERESTING IS NOT JUST THE PRICE DROPS BUT THE TALENT MOVES. THIS WAS A BIG STORY AT THE END OF LAST YEAR. ED: THE MASTERMIND BEHIND THE CONSTRUCTION AND RAMP-UP IN PERFORMANCE OF THE SHANGHAI PART AND AS WE REPORTED ABOUT A MONTH AGO, HE HAS BEEN IN THE UNITED STATES IN THE BAY AREA AND IN AUSTIN, BASICALLY INSTALLING HIS OWN PEOPLE, TRYING TO MAKE THOSE FACTORIES BETTER BECAUSE SHANGHAI IS 50%, IT'S THE STANDARD TESLA WANTS TO HIT.
SOURCES TELL ME THIS GUY IS SERIOUS. HE WORKS SUPER AND WE'VE DONE A PROFILE OF HIM ON THE BLOOMBERG TERMINAL. THE QUESTION IS IS THIS A FUTURE ELON SUCCESSOR. CAROLINE: THERE HAS BEEN A LOT OF TALK ABOUT NOT ONLY ELON MUSK HANDING OVER THE REINS AT TWITTER BUT SHOWING YOU HAVE A DEEP BENCH FOR HIS ROLE AS CEO AT TESLA. ED: THE CONFUSING THING IS ELON TALKS ABOUT WANTING TO BE ON THE ENGINEERING SIDE AND LESS PENCIL PUSHING SIDE. WHERE WE OUT, WE DON'T KNOW BUT IT IS SOMETHING TO WATCH IN THE FUTURE. COMING UP, THE TOP IPOS TO
WATCH CAROLINE:. CAROLINE:ARE THERE GOING TO BE ANY? ED: WE'LL SEE. THIS IS BLOOMBERG. ♪ CAROLINE: WE JUST TEASED AHEAD TO THE IPOS FOR 2023 -- WILL THERE BE ANY? THERE ARE A FEW IN ASIA, IT HAS BEEN BUSIER THERE BUT WHAT CAN WE EXPECT IN THE U.S. AND ABROAD? ED:
WE ARE LOOKING FOR A SENSE OF DIRECTION AND THE IPO MARKETS, SO LET'S LOOK AT 2022 AND WHAT HAPPENED. 207 MILLION DOLLARS RAISE -- A SIGNIFICANT DROP, AROUND 70%. THAT IS WHY CONTEXT IS KING. WHAT HAPPENED IN 2021?
WE HAD NOT EMBARKED ON THE AGGRESSIVE RATE POLICY NOT JUST FROM THE FED BUT CENTRAL BANKS. ALSO HAD THE SPAC WAVE WHERE A NUMBER OF ACQUISITION COMPANIES LIFTED THEIR SHARES IN HOPES OF ACQUIRING TARGET COMPANIES. THAT ENTHUSIASM DROPPED OFF. THERE WAS ENERGY IN CHINA BUT FLIP UP THE BOARDS AND LET'S TALK ABOUT THE U.S. YOU CAN'T QUITE SEE IT BUT ON THE FAR RIGHT-HAND SIDE, THAT IS LISTING VOLUMES FOR 2020 TWO, AROUND $24 BILLION, NOTHING COMPARED TO 2021. HIGHER RATES HAVING A REAL
IMPACT. VOLATILITY IN MARKETS THE STAR OF THE CONVERSATION AROUND RECESSION GLOBALLY, CLEARLY HAVING IMPACT. ASIA OR THE U.S. IN 2023? THERE ARE SOME GREEN SHOOTS AND WE CAN ASK OUR NEXT GUEST ABOUT THIS. BUT BLOCK TRADES ARE TAKING PLACE TO A CERTAIN EXTENT. THERE IS THIS IDEA YOU SEE SOME SECONDARY OFFERINGS AS A PRECURSOR TO PRIMARY OFFERINGS DOWN THE ROAD.
IPOS TAKE A LONG TIME BUT YOU CAN MAKE A SECONDARY TRANSACTION HAPPEN QUICKLY. WE ARE LOOKING FOR OPTIMISM, BUT THAT IS WHAT HAPPENED AND WHETHER THOSE TRENDS CONTINUE, DON'T ASK ME, ASK OUR NEXT GUEST. CAROLINE: THERE IS A MARKETPLACE FOR THESE TRANSACTIONS IN THE SECONDARY MARKET. WE WILL TALK ABOUT IT WITH THE COFOUNDER AND CHIEF STRATEGY OFFICER OF THAT PLATFORM PRE-IPO INVESTING.
ANY OF THOSE PRE-IPO'S LOOKING AT A NATURAL EXIT? WILL ANY OF THOSE GET TO MARKET? PHIL: I THINK WE WILL SEE SOME COMPANIES COME TO MARKET IN THE SECOND HALF. WE SAW A FROZEN MARKET AS YOU ALLUDED TO IN THAT IS STARTING TO THAW OUT BUT ALL IT TAKES IS ONE OR TWO OF THESE BELLWETHER PRE-IPO COMPANIES TO TEST THE MARKET. IF YOU'VE GOT ONE SUCCESS, YOU CAN PROBABLY OPEN THE MARKET FOR A BUNCH OF OTHERS. ED: I WANT TO ASK YOU THE REVERSE QUESTION FIRST -- THE WORST PERFORMERS ON THE NASDAQ 100 WERE RIVIAN, BLOCKBUSTER IPO -- THE SIXTH BIGGEST IPO IN HISTORY AND LUCID, THE SECOND WORST PERFORMER ON THE NASDAQ 100, THEY RAISED A LOT OF MONEY FROM THEIR SPAC TRANSACTION. THOSE WERE THE TWO WORST PERFORMERS.
WHAT DOES THAT TELL YOU ABOUT SOME HESITANCY TO GO PUBLIC IN 2022? MAYBE WE LOOK AT THOSE COMPANIES AND SAID WE DON'T WANT THAT TO HAPPEN. PHIL: THOSE COMPANIES ARE GOOD EXAMPLES OF WHAT WORKED IN 2021 AND 2022. WHEN THE RUBBER MEETS THE ROAD, YOU SEE COMPANIES OPERATING IN A THREE PERCENT, 4%, 5% ENVIRONMENT.
YOU SEE THE RISK APPETITE COME DOWN WHICH MEANS PROFIT FIRST. BUT YOU HAVE BUILT THESE COMPANIES WITH GROWTH IN MIND. VENTURE CAPITALISTS WERE FEEDING MONEY TO THESE COMPANIES AT VERY HIGH VALUATIONS. THE SMART FOUNDERS TOOK THAT MONEY AND ARE GOING TO WAIT UNTIL THEY COME TO MARKET AT A VALUATION THEY THINK MAKES MORE SENSE. CAROLINE: THERE'S STILL A LOT OF TECH COMPANIES LIFTED WITH VERY DEEP POCKETS, BUT THEY CANNOT DO M&A AT THE MOMENT BECAUSE OF REGULATIONS. ONE COMPANY LIKE THAT WAS ARM HOLDINGS AND YOU WILL SAY THEY MIGHT ACTUALLY LOOK TO THIS.
THEY STILL WANT TO GO PUBLIC. PHIL: THAT IS A SIMPLER AVENUE FOR ARM TO GO THROUGH. BLIZZARD IS PROBABLY ANOTHER EXAMPLE WHERE IT HAS BEEN HARD TO DO LARGE-SCALE M&A. YOU THINK ABOUT WHAT TOOLS YOU HAD AVAILABLE AS A PRIVATE COMPANY ABOUT A YEAR AND A HALF AGO. EVERYTHING WAS AT YOUR DISPOSAL -- SPAC'S, LARGE ACQUISITIONS, IPOS AND YOU'VE GOT NONE OF THEM. AS A RESULT, YOU SEE VERY LITTLE ACTIVITY EXCEPT WE ARE STARTING TO SEE MORE ACTIVITY ON THE SECONDARY MARKETS WHICH WE SEE AS A LEADING INDICATOR FOR COMPANIES GETTING READY TO GO PUBLIC. ED:
ONE NAME YOU IDENTIFIED -- THERE'S A LARGE INVESTOR BASE INTERESTED TO FIND THE NEXT TESLA BUT WE WENT THROUGH THAT LONG ILLUSTRATION OF WHAT HAPPENED TO LUCID AND RIVIAN. DO YOU NOT THINK THEY ARE AT RISK OF THE SAME RECEPTION THOSE TWO NAMES GOT? PHIL: GREAT QUESTION. IN EXPOSURE TO SLIGHTLY DIFFERENT GEOGRAPHY, BUT THERE'S A LOT OF LEARNINGS FROM THE 50 OR 75 EV COMPANIES THAT HAVE GONE PUBLIC. WHAT YOU HAVE TO SHOW TO INVESTORS IS THE REALITY OF ACTUAL CONTRACTS, ACTUAL DELIVERABLES AND SUPPLY CHAINS UP AND RUNNING.
FALLING SHORT OF THOSE, YOU WILL HAVE A TEPID IPO RESPONSE. THERE COMPANIES SAYING THANK THIS WE DID NOT DO THIS YEAR AGO. ED: I'VE CONTINUED COVERING RIVIAN AND I HAVE BEEN WRITING ABOUT THEM. REVENUE WAS DISTANT. IS THE BURDEN OF PROOF WHERE PRE-REVENUE COMPANIES ARE A NO GO FOR INVESTORS OR IS THAT STILL AN OPPORTUNITY? PHIL: YOU'VE GOT TO BE A COMPANY DOING HUNDREDS OF MILLIONS OF DOLLARS OF REVENUE IF YOU WANT TO BE A COMPANY THAT GOES PUBLIC IN 2020 THREE. THE WAY I SEE IT, INVESTORS ARE NOT WILLING TO PAY FOR THAT RISK IF THEY ARE UNKNOWN ANYMORE. THE POSITIVE SIDE IS OF THOSE UNICORN COMPANIES OF WHICH THERE ARE A THOUSAND PLUS, MANY ARE AT THE HUNDRED OR BILLION DOLLAR REVENUE LEVEL IN THOSE ARE THE COMPANIES THAT WILL TEST THE MARKETS.
THE WATERMARK YOU WOULD HAVE SEEN 15 OR 20 YEARS AGO, MAYBE 30 MILLION IN REVENUE. LEADING UP TO THE DOT-COM BUBBLE IT WAS EYEBALLS AND NOW WE HAVE RECALIBRATED AND SAID YOU HAVE TO SHOW REVENUE GROWTH AND A PATH TO PROFIT ABILITY. CAROLINE: AND A LOYAL FAN BASE LIKE REDDIT. YOU SAID IN THE SECONDARY
MARKET, YOU HAVE SEEN A LITTLE BIT OF PICKUP. WHO IS BUYING, WHO IS SELLING AND WHO ARE THE PLAYERS AT THE MOMENT? PHIL: IT'S PRETTY INTERESTING. A NEW PHENOMENA IS VENTURE CAPITAL FIRMS WHICH TYPICALLY INVEST IN PRIMARY CAPITAL RACES ARE FINDING THAT MARKET IS COMPLETELY SHUT. SEQUOIA GOES TO A COMPANY AND SAY I SAW YOU RAISED TO $10 BILLION. THAT FOUNDER TELLS THEM TO KICK ROCKS. WHY WOULD I DO THAT?
THIS VENTURE CAPITAL FIRMS ARE SAYING IF I WANT TO INVEST AT MARKET PRICES, I HAVE TO LOOK ELSEWHERE AND THEY FIND EAGER SELLERS IN SECONDARY MARKETS WHICH ARE EMPLOYEES, EX-EMPLOYEES AND MAYBE YOUR EARLY INVESTOR THAT HAD A LOT OF RETURNS ON PAPER AND ANGRY LIMITED PARTNER SAYING WHERE IS MY CASH? IF YOU CAN REALIZE THAT NOW, IT WOULD BE A GOOD IDEA. ED: I'M NOT SPEECHLESS, BUT WHAT I WOULD SAY IS THERE'S A LONG LIST OF NAMES WE DIDN'T EVEN GET TO. PENT UP DEMAND -- IS THERE A BIT OF ANCHOR? DO THEY WANT THE IPO? PHIL: I THINK INVESTORS WANT TO SEE THE IPO AND THEY WANT TO SEE SUCCESS. IF YOU DID NOT INVEST IN LEAN HOGS IN CRUDE OIL, YOU DIDN'T MAKE ANY MONEY. PEOPLE WANT TO BE PART OF A WINNING STRATEGY AGAIN AND SEEING THESE HEALTHY PRE-IPO TECH COMPANIES COME TO MARKET WILL OPEN UP THE GATES. CAROLINE: WE COULD TALK TO YOU FOR A VERY LONG TIME. COME BACK. SOME ACTIVITY IS APPARENTLY
GOING ON. AT THE MOMENT, I LIKE THAT REDDIT WAS ON THE LIST. REDDIT IS COMING BACK TO ITS OWN. DID YOU SEE BED, BATH & BEYOND? ED: PHIL IS ONE NAME -- HE DID A GOOD JOB BUT THERE'S SO MUCH SKEPTICISM OUT THERE. EVERYONE AGREES THE FIRST HALF OF THIS YEAR IN THE TECHNOLOGY SECTOR, VERY UNLIKELY TO SEE A BIG IPO OR EVEN LITTLE IPO. CAROLINE: THERE WILL BE AN AWFUL LOT OF PEOPLE WANTING TO BUY HOUSE AND MAKE LIKE STEPS AND HAVE LIQUIDITY IN SOME WAY, SHAPE OR FORM. I MEAN UP, WE WILL TALK ABOUT THE LIFE STEPS OF ONE PERSON ED FOLLOWS.
WE WILL DIG INTO IT IN A MOMENT IN OUR GOING VIRAL SPACE. THIS IS BLOOMBERG. ♪ CAROLINE: A WHOLE LOT OF NEWS IN THE WORLD OF SOCCER. OR FOOTBALL. ACROSS THE WORLD IT IS GOING VIRAL BECAUSE QATAR SORTS INVESTMENT FUND IS LOOKING AT THE PREMIER LEAGUE. THEY ARE AMONG THE CLUBS BEING TARGETED AND NO DEAL IS IMMINENT BUT SOME CLUBS, INCLUDING LIVERPOOL AND MANCHESTER UNITED ARE OPEN TO A SALE. THE PREMIER LEAGUE HAS TWO CLUBS AND NEWCASTLE UNITED RECENTLY ACQUIRED BY SAUDI ARABIA'S WEALTH FUND.
REMEMBER ALREADY GOING VIRAL, QATAR WAS HOSTING THE MOST EXPENSIVE WORLD CUP EVER. WITHIN $200 MILLION IN'S -- INVESTED IN INFRASTRUCTURE. WHAT CAUGHT MY EYE WAS THESE DEALS AND POTENTIAL INVESTMENTS WAS ONE MAN PUT IT CLOSE TO YOUR HEART.
HE WAS THE THIRD MOST GOOGLED THING TODAY. ED: RETIRING AT AGE 33. HE HAD A DISAPPOINTING WORLD CUP BY ALL ACCOUNTS. HE WAS A WALES -- THE NATION OF 3 MILLION PEOPLE, GLOBAL SUPERSTAR FROM REAL MADRID AND HE HASN'T SAID WHY HE'S RETIRING OTHER THAN THIS IS A TRANSITION IN A CHANGE IN HIS LIFE BUT A LOT OF PEOPLE WERE LIKE REALLY? CAROLINE: YOU COULDN'T EVEN WATCH HIM ON THE WEST COAST. ED: I AM SURPRISED HE'S RETIRING. HE IS A GLOBAL SUPERSTAR
JOINING THE PATHEON -- PANTHEON OF LEGENDS LIKE TOM JONES AND CATHERINE ZETA JONES. TAKING TO INSTAGRAM AND TWITTER, NOT JUST THE PEOPLE OF WALES BUT FANS OF FOOTBALL ACROSS THE WORLD ARE SURPRISED HE'S HANGING UP HIS BOOTS. CAROLINE: ISN'T IT NOTABLE THE WAY THESE ANNOUNCEMENTS ARE MADE? HE'D DID IT IMMEDIATELY ONTO TWITTER DIRECTLY TO HIS FANS. IT'S A NEW WAY THAT SUGGESTS THE LIFE'S CURVATURE AND WHETHER YOU ARE PUTTING A CV ON LINKEDIN OR TELLING EVERYONE'S ABOUT THE POWER OF SOCIAL MEDIA. ED: I AM SAD, BUT THANK YOU, GARETH BALE. CAROLINE: THAT DOES IT FOR THIS EMOTIONAL EPISODE OF BLOOMBERG TECHNOLOGY.
ED: DON'T FORGET TO CHECK OUT OUR PODCAST WHEREVER YOU FIND YOUR PODCAST. TERMINAL, APPLE, IHEART RADIO AND SPOTIFY.
2023-01-10 19:26
