Bloomberg Technology 08/14/2023
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: WELCOME TO THE BLOOMBERG WORLD HEADQUARTERS IN NEW YORK. ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THE TESLA CHALLENGE, THE COMPANY BECAUSE PRICES IN CHINA AGAIN, SPARKING WORRIES OF ANOTHER GLOBAL RISE ALL. ED: PAYPAL HAS A NEW CEO FINALLY, THE NEW LEADER AND HOW HE MAY BE ABLE TO HELP THE STOCK THAT HAS SLUMPED POST-PANDEMIC. CAROLINE: IT IS TIME TO MOVE ON FROM THE POTENTIAL CAGE FIGHT ELON MUSK, BUT WILL WAIT? -- BUT WILL WE? I AM LOOKING AT THE NASDAQ, MANAGING TO PICK OURSELVES UP FROM THE CONCERNS WE HAD FROM CHINA.
THE BIG CHINESE NAMES THAT ARE TRADED HERE IN THE U.S., THEY ARE STILL UNDER PRESSURE AS MUCH AS THEY WERE IN EARLIER DAYS TRADING. WE ARE NOW OFF BY HALF OF THAT, THIS IS THE ANXIETY AROUND BOTH MANAGEMENT AND EXPOSURE THERE OVER IN CHINA, AND WARM WITH THE PROPERTY MARKET, HOW MUCH OF THE MARKET WILL STIMULATE THIS ECONOMY. THERE ARE SOME ANXIETY IN THE
BOND MARKET, A COUPLE OF WEEKS, IN TERMS OF THE 10-YEAR, 4.2 ON THE 10-YEAR THAT WE SEE, 5% ON THE TWO YEAR, WE SEE THAT YIELD MOVE ABSOLUTELY HIGHER ON THE TENURE AS IT STANDS -- 10 YEAR AS IT STANDS. WE HAVE SEEN A KNOCKDOWN ON SUNDAY TRADING BUT THAT IS THEN VOLUMES, WE HAVE VOLUMES NO MATTER WHAT ASSET CLASS YOU LOOK AT. I'M LOOKING AT WHAT IS
HAPPENING IN BITCOIN AND WE MANAGED TO TREAD WATER IN BETWEEN 9000 LEVEL. WE VERY MUCH FEEL RANGE BOUND, PUSHING UP ON THE HIGHER SIDE AS WE SPEAK. ED: THREE QUICK NEWS STORIES, TESLA IS DOWN 2%, HIGHER SPEC MODELS IN CHINA, A FORMER TESLA BOARD MEMBER WILL JOIN US IN A MOMENT, STICKING WITH THE AUTOMATED BEING, FORTIS MODESTLY HIGHER, PETER STERN, UC APPLE ALUM IS JOINING TO LEAD THE SULFUR OF INTEGRATED SERVICES PART OF THAT BUSINESS. WILL BRING YOU MORE INFORMATION
LATER ON AND PAY PPAL HAS NAMED ITS CEO. THE BIG STORY OUT OF ASIA IS FOXCONN, SHARES OF 1.4%, IT HAS CUT ITS SALES OUTLOOK FOR THE YEAR, TELLING US THAT IN THE QUARTER AND ON THE ANNUAL BASIS THE SMARTPHONE BUSINESS IS GOING TO DECLINE, INMATE, THEY TOLD US IT WOULD BE FLAT IN TERMS OF TOPLINE GROWTH. THIS ADDS TO EVERY STORY WE HAVE BEEN COVERING OVER THE LAST SEVERAL WEEKS ABOUT THE PAIN IN THE SMARTPHONE MARKET. PRINCIPAL HERE IN THE UNITED
STATES. FOXCONN, THE PRINCIPAL ASSEMBLER OF APPLE'S IPHONE. IT MATCHES THE NARRATIVE WE GOT FROM APPLE EXECUTIVES A WEEK AGO DURING EARNINGS. CAROLINE: IT ALSO REFLECTS WE HAVE HEARD FROM WELCOME, FROM TSMC, THIS OVERALL NARRATIVE THAT THE CONSUMER IS SLOWING OUR PURCHASES OF SMARTPHONES AND ELECTRONICS. WHAT ABOUT BUSINESS SPEND? HOW WILLING THEY ARE IN THIS GLOBAL ECONOMY? ED: WE ARE TRACKING A CRYSTAL BALL OF COMMENTARY TWO CONSECUTIVE QUARTERS OF PHONE SLOW DOWN, SEWN SAYING THE REMOTE IS COMING IN 2024.
IT IS A DEMO I'LL LOOK FOR A CORE PIECE OF ELECTRONICS FOR CONSUMERS AND BUSINESSES GLOBALLY. CAROLINE: YOU GET IN THE PI WRAP, IT COULD BE AFFECTED BY MUTED IPHONE GROWTH, MARGIN PRESSURE DUE TO PERHAPS EVEN A LOCKED DOWN IMPACT THAT WE STILL REMEMBER IN CHINA. I WANT TO STICK ON THE CHINA THING BECAUSE THE NARRATIVE OF THE DAY, TESLA ROLLING OUT NEW ROUNDS OF PRICE CUTS OVER THERE ACCORDING TO HIS WEIBEL ACCOUNT. IT IS REIGNITING FEARS THAT THEY HAVE BEEN PUSHED TO THE SIDE. OVER THE LAST WEEK KNOWN ALONE, THEY HAVE BEEN RINGING BACK PRICES. WE ARE GLAD TO HAVE SOMEONE WHO
KNOWS THE COMPANY VERY WELL, STEVE WESLEY, YOU SERVED ON THE BOARD OF TESLA AND YOU WERE ON THE BOARD FOR THREE YEARS. . I WANT TO PUT THIS ANXIETY TOO BED, AN AGREEMENT BETWEEN THE KEY PLAYERS IN CHINA THAT THEY WOULD NOT BE? >> HERE'S WHAT I THINK HAS HAPPENED. EVERY AUTOMAKER IS GOING ALL ELECTRIC, TESLA HAS A COST ADVANTAGE OVER EVERYBODY ELSE, THEY ARE TRYING TO GRAB MARKET SHARE. WHAT AMERICANS INVESTORS DO NOT UNDERSTAND IS OFTEN UNDERSTANDING THAT CHINA IS THE BIGGEST AUTO MARKET IN THE WORLD, 54% OF ALL TESLA'S MADE IN CHINA OR LESS EXPENSIVE AND ELON IS TAKING ADVANTAGE OF THE PRICE ADVANTAGE SHE HAS. ED: YOU SAY THEY ARE GOING FOR MARKET SHARE BUT BYD IS A FIERCE COMPETITOR, ULTIMATELY, DOES IT SPELL CONCERNS MORE GLOBALLY AS WELL FOR EV COMPETITION? >> THE TOP 10 AUTO BRANDS IN THE WORLD, SEVEN ARE THE 10 OR CHINESE. MOST AMERICANS WHO THINK FORD
IS THE LEADER, IT IS TESLA, THE VOLKSWAGEN COMING ON QUICKLY, THE BIGGEST SELLER OF VEHICLES IN THE WORLD IN 2022. THOSE ARE THE BIG THREE, EVERYTHING ELSE IS TRYING TO CATCH UP. IT WILL BE AN INTERESTING BATTLE. IT IS SO FASCINATING TO ME IS
TESLA REALLY IS THE LEADER FOR A LONG TIME, THE FIRST ONES TO CONNECT EVERY VEHICLE, THEY HAVE OF THE WORLD NOT TO BRING BATTERY PRODUCTION IN-HOUSE, INCREASED ROBOTIC CAUSATION AND MANUFACTURING, THE MOST IMPORTANT PART, REALLY TAKING A LION'S SHARE OF OPTIMIZING THE OVER THE AIR SOFTWARE, SOFTWARE SALES DROPS RIGHT TO THE BOTTOM LINE. THAT IS WHERE THEY HAD THE USE CASE, APPLE'S SOFTWARE AHEAD IS HELPING THEM FIGURE OUT THEIR SOFTWARE PRICING, THEY NEED THAT PROFITABILITY. ED: WE WILL BRING PETER STERN LATER ON IN THE SHOW. TELL US ABOUT THE SPECIFIC CUTS? 900 CUTS, THE TWO HIGHEST SPEC MODELS IN CHINA, 4.5 PERCENT CUT TO THE LONG RANGE, 3.8% TO THE PERFORMANCE SPEC. IF ELON MUSK CAME TO YOU AND SAID I HAVE CHANGED MY MIND AGAIN, WE WILL CUT PRICES, WE KEEP TARGETING VOLUME AND GROWTH, WHAT WOULD YOU HAVE SAID TO HIM? >> I KNOW BETTER THAN MOST, HE IS HARD TO PREDICT.
I'M LOOKING AT THE MARKET AND I AM SEEING TESLA TRADING DOWN A BIT AND INVESTORS ARE THINKING REDUCED PROFITABILITY. I THINK THAT IS SHORTSIGHTED. HERE YOU HAVE A GLOBAL BATTLE AND TESLA HAS A CHANCE TO TAKE MORE TERRITORY NOW AND I THINK THEY ARE DOING THE RIGHT THING. 15 PROFITABLE QUARTERS CLOSE TO $20 BILLION PROFITABILITY LAST YEAR. THEY CAN AFFORD IT, WHY NOT MAKE THE GRAB NOW? ED: I WAS CHINA CHANGED -- HOW HAS CHINA CHANGED AS A PRIORITY FOR THE COMPANY? >> CHINA WAS NOT EVEN A SPECK IN THE REARVIEW MIRROR FOR THE LAST 50 YEARS, WE HAVE BEEN LOOKING AT THE JAPANESE INCREASING IT, THE KOREANS, THEY MAKE OUTSTANDING CARS, HYUNDAI, AND KIA, THESE ARE GREAT BRANDS.
THERE WILL BE PART OF THE PICTURE. TESLA WAS NOT IN THE PICTURE. FAST FORWARD 20 YEARS, WHAT HAS CHANGED IS ELECTRIC CARS ARE BETTER IN EVERY WAY. THEY ARE FASTER, BETTER FOR THE PLANET. THE FLY IN THE OINTMENT IS THAT THEY COST TOO MUCH. THINK ABOUT THIS FROM 1100 THOUSAND DOLLARS KILOWATT HOUR DOWN TO 90? THE REASON THE CHINESE ARE DOING SO WELL, THE CHINESE GOVERNMENT SUBSIDIZES A LOT OF COMPANIES AND MOST ALL OF THE AUTO BATTERIES IN THE WORLD ARE MADE IN CHINA AND THAT GIVES THEM A COMPETITIVE EDGE IN BATTERY PRICING. CAN THE CHINESE USE THE LOWER
COST BATTERIES TO CATCH UP ON THE EDGE BUT TESLA HAS IN MANUFACTURING AND SOFTWARE? ED: STEVE HAS A GREAT GRASP ON THE DATA, HE IS TALKING ABOUT 54% OF PRODUCTION COMING OUT OF CHINA, IT RAISES THE QUESTION OF IF YOU CUT BACK IN CHINA AS WELL? CAROLINE: THE THIRD DROP IN SHIPMENTS FOR THE MONTH OF JULY COMING FROM CHINA, MAKE THIS GLOBAL FOR US FOR A MOMENT BECAUSE THEY DO NOT JUST PRODUCE IN CHINA, IT HAS BEEN A KEY AREA OF FOCUS BUT THEY DO PRODUCE LARGELY IN THE U.S., GERMANY, HOW MUCH ARE WE GOING TO SEE OVERALL PRODUCTION OR INDEED A CURTAILMENT IN OVER -- A CURTAILMENT OF PRODUCTION? >> COSTS ARE SO LOW, WE WOULD BE FOOLISH NOT TO LOOK AT THE POLITICAL CONCERNS ON THE HORIZON, DOUBLING DOWN ON THE EXPANDING CAPACITY OF CHINA AND ABOUT TO BREAK GROUND THIS MONTH WITH A NEW PLAN IN MEXICO, TESLA IS NOT STUPID, THEY ARE DIVERSIFIED, THEY'RE LOOKING AT OTHER MARKETS LIKE MEXICO WHERE THEY CAN ENJOY THE LOWER COST VEHICLES BUT I MUST SAY I THINK ELON HAVING SURVIVED A TOUGH TIME FIVE OR SIX OR EIGHT YEARS AGO, THERE WERE NOT SURE THE COMPANY WOULD SURVIVE, HE IS FOCUSED LIKE A LASER, HE HAS A COST ADVANTAGE OVER THE OTHERS AND HE WILL SQUEEZE A LOT OF THE NEW INCUMBENTS AND WHAT YOU WILL SEE QUICKLY IS THIS BIG GLOBAL SHAKEDOWN BETWEEN TESLA, WE ARE SITTING ON TOP, THE CHINESE WERE COMING QUICKLY, VERY LOW COST BATTERIES AND VOLKSWAGEN WHICH IS PROBABLY THE OTHER WESTERN BRAND I THINK HAS DONE THE BEST AT MODERNIZING BATTERY PRODUCTION AND IMPROVING MANUFACTURING CAPABILITIES. ED: YOUR REACTION TO ZACH, THE CFO OF THE LAST FOUR YEARS, 13 YEARS AT THE COMPANY, LEAVING TESLA? >> IT IS NO SURPRISE. EXECUTIVES AT TESLA TEND TO TURN OVER FAIRLY OFTEN. ZACH SURVIVED AS LONG AS HE DID IS A TESTAMENT TO HIM. I DO NOT THINK IT IS A SURPRISE, ELON MAY BE A VISIONARY BUT YOU HAD TO HAVE HIM AND GIVE THE BOARD CREDIT, THEY ARE PLAYING LONG BALL HERE AND I THINK IF YOU LOOK AT THE REVENUES THIS YEAR THEY WILL CROSS 00 BILLION WITH THE HIGHEST PROFITABILITY IN THE AUTO INDUSTRY, HARD TO COMPLAIN ABOUT WHAT THEY ARE DOING RIGHT NOW. ED:
STEVE WESLEY, GREAT TO HAVE YOU BACK ON THE SHOW. THANK YOU VERY MUCH. TIME TO MOVE HERE ON BLOOMBERG TECH, THAT IS WHAT MARK ZUCKERBERG SAYING ABOUT THE CAGE FIGHT BETWEEN HIM AND ELON MUSK ALREADY SAID IF ELON MUSK GETS SERIOUS ABOUT A REAL DATE AND AN OFFICIAL EVENT, HE KNOWS HOW TO REACH ME, OTHERWISE, TIME TO MOVE ON, I WILL FOCUS ON COMPETING WITH PEOPLE WHO TAKE THIS SPORT SERIOUSLY. ELON MUSK RESPONDED SAYING HE CANNOT WAIT TO BANG ON HIS DOOR TOMORROW.
REAL QUICK, NICOLA SHARES HER DOWN, THE REASON I'M TRACKING THIS ONE IS BECAUSE THEY BURIED THE NEWS FRIDAY NIGHT AND SAID THAT A FIRE AT THE FACILITY WHICH CAME FROM THE BATTERY PACKS AND ELECTRIC TRUCKS WAS NOT FOUL PLAY, AS THEY PREVIOUSLY SAID THEY'S EXPECTED, BUT ACTUALLY IT WAS A MALFUNCTION MESH AT -- AS THEY HAD EXPECTED, IT WAS ACTUALLY A MALFUNCTION. THE OF THE APPLE WATCH SAID TO COME WITH A MINOR BUT FLASHY UPDATE IN TIME FOR THE 10TH ANNIVERSARY. MORE DETAILS ON WHAT TO WATCH, A LOT ABOUT WATCHES, VISIT BLOOMBERG TECHNOLOGY. -- THIS IS BLOOMBERG TECHNOLOGY. ED: AMAZON AND U.S. REGULATORS ARE ABOUT TO MEET THIS WEEK, THE FINAL SET FOR A LONGSHOT BID TO BREAK UP AMAZON.
AMAZON IS TRYING TO ARGUE THAT IT BEHAVIOR IS HARMLESS PLAN TO AVOID AN ANTITRUST LAWSUIT IN COURT. WILL IT WORK? LET US BRING IN OUR EDITOR TECHNOLOGY -- OUR TECHNOLOGY EDITOR. THE FTC COMMISSIONERS AND REPRESENTATIVES FROM AMAZON, IT SEEMS LIKE DESPITE THE DRAMA OF THE ROOM, THE FTC WILL GO AHEAD ANYWAY? >> IT IS INTERESTING FOR WHAT IT REPRESENTS, THE WHISTLE AT THE BEGINNING OF THE GAME, THE FORMAL START OF FESTIVITIES. IT IS A BIT OF A RITUAL, IN OTHER CASES THESE MEETINGS ALSO CALLED LAST RITES CAN BE SIGNIFICANT, THE COMPANY MAY BRING ITS CEO AND THEY MAY OFFER COMPROMISES TO GET OUT OF THE LITIGATION, IN THIS CASE IT IS UNLIKELY, I THINK EVERYBODY IS GOING THROUGH THE MOTIONS HERE, THE FTC HAS BEEN ON THIS COURSE EVER SINCE LINA KHAN WAS NOMINATED AS COMMISSIONER BY THE BIDEN ADMINISTRATION. SHE MADE HER NAME ARGUING THE
AMAZON WAS A MONOPOLY THAT BEHAVED COMPETITIVELY. I THINK THE COMPANY IS ASSUMING EVER SINCE THEN THIS DAY WAS COMING. CAROLINE: YOU MADE SOME RATHER NICE SPORTING ANALOGIES. OUTLINE IF YOU WILL, REMIND US, WE ARE THE KEY ARGUMENT YOU THINK COULD LAND, COULD STICK? >> IT IS INTERESTING BECAUSE UNLIKE OTHER COMPANIES, MICROSOFT IN THE 90'S, GOOGLE TODAY, AMAZON DOES NOT HAVE THE KIND OF COMMANDING MARKET SHARE THAT WE THINK OF AS A MONOPOLY. IN SOME CASES IT IS JUST A COUPLE PERCENTAGE POINTS OF OVERALL RETAIL, IT IS HIGH 40'S IN E-COMMERCE IN GENERAL, THE FTC IS LIKELY TO FIND THIS MARKET AS U.S.
RETAIL MARKET PLACES THE LIKES OF EBAY OR WALMART'S MARKETPLACE. IN THIS RESPECT AMAZON DOES HAVE THE KIND OF PERCENTAGE MARKET SHARE WE THINK OF AS A MONOPOLY, HIGH 70%. WHAT THE FTC IS LIKELY TO ARGUE IS THAT THE SITUATION IS NOT BAD FOR CONSUMERS WHICH WOULD BE THE TRADITIONAL WAY THAT YOU ANALYZE ANTITRUST BUT IT IS BETTER FOR SMALLER BUSINESSES, COMPETITION, AND IN PARTICULAR IT IS BAD FOR THE SMALL SELLERS THAT ARE FORCED TO USE AMAZON OR AMAZON FORCES TO USE THINGS LIKE DISTRIBUTION FULFILLMENT BY AMAZON OR ADVERTISING, IT IS BASICALLY INCREASING THE AMOUNT OF TAPE -- THE AMOUNT IT TAKES. THERE WILL BE THE FTC -- THAT WILL BE THE FTC'S ARGUMENT. ED: WE HAVE BEEN THROUGH THIS WITH META AND ACTIVISION AND INVESTORS DO NOT SEEM TO WORRY, LOOK AT THE SHARES TODAY, WE ALWAYS ASK OURSELVES ARE THEY PAYING ATTENTION? THE UPWARD TRAJECTORY OF THIS WOULD SUGGEST EVEN IF THEY ARE, THEY ARE SANGUINE ABOUT IT.
>> CHARGES HAVE NOT BEEN ALL THAT FAVORABLE TO THIS FTC EITHER, THEY HAVE LOST A LOT OF THESE CASES. ALL OF THE ANTITRUST EXPERTS I SPOKE TO THINK THAT THE ODDS ARE LONG FOR THE FTC IN THIS CASE AS WELL. I THINK INVESTORS ARE PAYING ATTENTION AND THEY REALIZE THAT THIS FTC, THE RECORD HAS NOT BEEN GREAT. A WHOLESALE REINTERPRETATION OF ANTITRUST LAW, SO FAR, AND HAS NOT BEEN THE SUCCESSFUL IN THE COURTS. CAROLINE: THERE ARE 60 BUYS FROM ANALYSTS ON THE STOCK, ZERO CELLS.
THANK YOU SO MUCH AS WE LOOK AHEAD TO THAT THIS WEEK, COMING UP, SOME STRANGE LIVESTREAMING TRENDS THAT ARE TAKING UP ON TIKTOK. -- TAKING OFF ON TIKTOK. WHAT IS THE DANCE OF WEWORK? A PENNY STOCK, A $.24 STOCK, A RECORD LOW LAST WEEK AFTER THERE ARE CONCERNS ABOUT BEING A GOING CONCERN AND MANAGING TO RALLY ONCE AGAIN, THIS IS UBER TECHNOLOGY. -- BLOOMBERG TECHNOLOGY. ♪
ED: TIME FOR TALKING TECH, PETER STERN IS GETTING A NEW START AT FORD, HE WAS NAMED PRESIDENT OF THE NEWLY FORMED FOR INTEGRATED SERVICES WHERE HE WILL OVERSEE SOFTWARE AND SERVICES FOR FORD'S KEEP Y MODELS. HE WAS IN CHARGE OF APPLE TV+, MASTERCARD IS BY A MINORITY STAKE IN AFRICA'S BIGGEST WIRELESS CARRIER. THE SIZE OF MASTERCARD'S STAKE IS NOT DISCLOSED UNTIL THE TRANSACTION IS CLOSED ,W MTM I USE IT AT $30 MILLION.
ELON MUSK IS FUNDING RESEARCH GROUP AT THE UNIVERSITY OF TEXAS AUSTIN DEVOTED TO THE STUDY OF POPULATION. WE KNOW WHERE THAT MONEY WENT, IT MUST HAS BEEN OUTSPOKEN ABOUT THE DANGERS OF POPULATION COLLAPSE FOR SOME TIME. CAROLINE: LET US MOVE ON, WE TALK ABOUT THE LATEST TIKTOK TRENDS FOR A SECOND.
>> I HAD AN ENTANGLEMENT WITH THE DOUGHNUT, THANK YOU. CAROLINE: A NEW TREND THAT USERS ARE LIVESTREAMING THEMSELVES WILL ACTING LIKE ROBOTS. ACTING WITH ROBOTLIKE ONE-LINERS AS IF THEY ARE IN A VIDEOGAME. THAT KIND OF STREAM MAY BE A BIT WEIRD BUT IT IS ALSO THE BIGGEST LIVE VIDEO TRYING TO HIT TIKTOK IN THE UNITED STATES. IT WILL TALK -- WE WILL TALK ABOUT A BRILLIANT PIECE DO WRITE DOWN EXACTLY, ALEX, WHAT NONPLAYER CHARACTER TREND IS ALL ABOUT? WHY WILL IT HELP TIKTOK SELL STUFF HERE IN THE U.S.? >> IT LOOKS WEIRD AND SILLY, IT IS REALLY POTENTIALLY IMPORTANT FOR TIKTOK. THIS IS THE BIGGEST TREND ON A
LIVE STREAM VIDEO IN THE U.S. FOR TIKTOK SINCE IT HAS BEEN PUSHING IT, LIVESTREAM VIDEO FOR TIKTOK IS MORE THAN PEOPLE GETTING GIFTS SENT, MAKING MONEY OFF OF THAT, IT IS A KEY PART OF THE GLOBAL COMMERCE STRATEGY. TIKTOK A SUPERSTORM IN E-COMMERCE IN PLACES LIKE SOUTHEAST ASIA AND LIVESTREAM COMMERCE, LIVESTREAM VIDEO, THOSE ARE THE THINGS THAT ARE KEY TO THEIR COMMERCE OVER THERE, IN THE U.S., THAT HAS NOT WORKED, I TALKED TO SOURCES CLOSE TO THE COMPANY, AS THEY HAVE MOVED COMMERCE OVER HERE FOR TIKTOK, I HAVE HAD TO SPLIT THEIR STRATEGY. THEY'RE EDUCATING AND EVANGELIZING LIVESTREAM IN OH, WHILE THEY ARE BUILDING ON THEIR COMMERCE OPERATIONS. TO SEE SOMETHING LIKE THIS OR
USERS ARE ORGANICALLY ON THEIR OWN CREATING -- WHERE USERS ARE ORGANICALLY ON THEIR OWN CREATING THINGS, THAT BRINGS TO IKTOK INTO A SUPERPOWER OF LIVESTREAM SHOPPING. ED: EXPLAIN WHAT IS HAPPENING? I TALK ABOUT NBC ALL NPC, WHAT IS THIS? >> PEOPLE ARE SENDING HER THINGS LIKE CORN AND SHE WILL EXPLAIN IT IS CORN OR THEY WILL SPEND $.10 TO CENTER A COWBOY HAT THAT YOU SEE AND SHE WILL SAY THE SAME KIND OF PHRASE.
IT IS SOMETHING THAT HAS GOTTEN FEW WORDS REALLY INTERESTED BECAUSE THEY ARE CURIOUS. IF I SPENT SIX CENTS TO SEND HER A HOT DOG EMOJI, WHAT WILL SHE DO? IF I SPEND MORE? IT IS FOR CREATORS LIKE CRYSTAL WHO HAVE FOUND SUCCESS YEAR, SHE TOLD ME SHE IS MAKING $700 AN HOUR. I CHATTED TO ANOTHER GUY AND HE STREAM FOR 21 HOURS STRAIGHT, 0,000 DURING THAT STREAM.
CAROLINE: 21 HOURS, THE TALENT THE TIKTOK IS BRINGING OVER, NOT JUST INTRAPRENEURS OR THE CREATORS? >> FRIENDS LIKE THIS OUT OF THE ALGORITHM ON TIKTOK ITSELF HAS BEEN GOOD AT BIRTHING NEW STARS, THIS LIVESTREAM TREND WE HAVE SEEN NEW PEOPLE COME INTO THE LIMELIGHT. REALLY GOOD ON LIFE AND NOT ALL RAINBOWS AND BUTTERFLIES, DON MOSS SAID THEY DO NOT SELL THINGS ALTHOUGH THAT THEY GET ON STREAM, WE WILL SEE IF THE COMMERCE CROSSES THE RUBICON. CAROLINE: EXECUTIVES WILL BE JOINING TOO, MEANWHILE, COMING UP, LET US CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED:
A QUICK CHECK IN ON THE MARKETS, NASDAQ 100, TECH HEAVY INDEX, WE GO TO IT EVERY TIME COME UP .6%? WE ARE REBOUNDING OFF OF THE FIRST BACK TO DECLINE FOR THE NASDAQ 100 OF 2023. GOING BACK TO DECEMBER WE HAD FOUR STRAIGHT WEEKS WHERE THE INDEX OF THE CLIENT ON A WEEKLY BASIS, EVERYTHING FROM THE FED TO THE TAIL END OF LAST WEEK WE STARTED GETTING WORRIED ABOUT CHINA, FOLDED IN TESLA PRICE CUT NEWS AND IT ADDS TO THE ECONOMIC DISCUSSION WE ARE HAVING AND THE IMPACTS ON THE TECHNOLOGY SECTOR, THE OTHER NAME WE ARE WATCHING US PAYPAL, WE WILL GET THE DETAILS IN A MINUTE. A STOCK IS UP 1.7 PERCENT, ALEX CHRIS IS COMING IN AS THE CEO. HE IS COMING INTO IT IS A STOCK THAT IS COMING OUT OF THE PANDEMIC AND SLOWING DOWN BECAUSE IT HAS NOT MAINTAINED MOMENTUM THAT IS ALL IN THE DEPTHS OF THE PANDEMIC ERA. WE ARE UP 1.75%. CAROLINE:
THE CHANGING OF THE GUARD AT PAYPAL, JENNY IS WITH US FROM BLOOMBERG NEWS. ALEX CHRISS, HE HELPED THROUGH M&A, BRIBES SMALL BUSINESSES, WHY IS THAT GOOD FOR PAYPAL -- HELPS SMALL BUSINESSES, WHY IS THAT GOOD FOR PAYPAL? >> IT PROVIDES DIFFERENT SERVICES TO SMALL BUSINESSES ALL OVER THE U.S., PAYPAL HAS BEEN FOCUSED ON GETTING MORE SMALL BUSINESSES TO ADD THE PAYPAL BUTTON TO THEIR WEBSITES.
YOU WILL SEE SOME SYNERGIES THERE, THE FACULTY LED THE ACQUISITION BACK IN TWO, A CLEAR, SEASONED DEALMAKER AT THE HELM AND PAYPAL IS NOT AFRAID TO DO M&A. YOU HAVE A REALLY INTERESTING MIX HERE. ED: THERE IS A QUESTION ON HOW SETTLED THIS MAKES PAYPAL. ACTUALLY, IT IS A COMPANY THAT HAS SEEN A LOT OF DEPARTURES, LONG-STANDING EXECUTIVES HAVE LESS PAYPAL -- LEFT PAYPAL, HOW DOES ALEX CHRISS STABILIZE THIS? >> THE FACT THAT DAN ANNOUNCED EARLIER THIS YEAR HE WOULD BE STEPPING AWAY, FOLKS EVENT CURIOUS, WHAT IS A NEW LEADER GOING TO LOOK LIKE? WILL HE TAKE IT IN A NEW DIRECTION? WILL THIS BE A NEW STRATEGY AT PAYPAL? I THINK THAT IS TO BE DETERMINED, ESPECIALLY HE IS NOT A NAME KNOWN TO PAYPAL INVESTORS. HE IS NOT A PAYMENTS GUY. I THINK THAT THERE WILL BE A LOT OF QUESTIONS TO COME. HAVING AN EXECUTIVE AND HAVING A CLEAR PLAN OF WHEN HE IS COMING AND SHOULD CLEAN UP SOME OF IT.
THERE IS STILL QUITE A FEW UNANSWERED QUESTIONS HERE. CAROLINE: WHAT HAVE ANALYSTS BEEN SAYING? >> FOLKS ARE EXCITED THAT THEY ARE BRINGING IN SOMEONE LIKE THIS, AN ENTERPRISE SALES BACKGROUND, A CLEAR TRACK RECORD FOR DELIVERING ON THE SMALL BUSINESS FRONT. HE IS NOT A PAYMENTS PERSON, THERE IS TREPIDATION WHICH I THINK IS WHY YOU SEE THE STOCK KIND OF INCHING AROUND, UP A LITTLE BIT TODAY. THERE IS STILL A FAIR AMOUNT OF QUESTIONS WHERE FOLKS ARE GOING AHEAD.
ED: THE OTHER BIG PAYPAL STORY WE HAVE BEEN COVERING ON BLOOMBERG TECHNOLOGY CARRIES THAT PAYPAL IS THE FIRST MAJOR U.S. FINANCIAL INSTITUTION INTRODUCES STABLECOIN CALLED PAYPAL UST, TO DIVE INTO THE LONG-TERM GOALS FOR THIS NEW STABLECOIN, LET US BRING IN OUR FRIEND, THIS IS AN AREA YOU HAVE BEEN COVERING SO CLOSELY. YOU HAVE BEEN TALKING ABOUT THE ADOPTION HEADWINDS AND CONCERNS, DO YOU THINK PEOPLE WANT TO ADOPT IT? >> I THINK IF YOU LIVE, FIRST OF ALL, THANK YOU FOR HAVING ME. IF YOU LOOK WITHIN THE CRYPTO COMMITTEE, STABLECOINS ARE HERE TO STAY. FRANCE, GERMANY, YOU PAY, AND CHINA WHICH HAS BEEN AT THE FRONT END OF THE CURVE, ALREADY USING STABLE POINTS, THE MULTIBILLION DOLLAR CREATIVE'S ALREADY APPROVED THE ADOPTION. PAYPAL IS NOT CRYPTO BILLING FOR CRYPTO, I THINK PAYPAL IS AN AMAZING MOMENT WHERE YOU ARE DOING FOR ANYBODY SITTING ACROSS THE BOARD.
AND PUTTING DOLLAR SUPREMACY, A DOLLAR BACK COIN, DIGITAL DOLLAR COIN, ON THE EMERGING MARKETS, PAYPAL IS ONE OF THOSE U.S. FINANCIAL INSTITUTIONS WHERE YOU ACTUALLY USE IT MORE TO ORDER MERCHANDISE AND TO HAVE SERVICES ACROSS THE BOARD. I THINK ADOPTION IS ALREADY THERE, 450 MILLION MORE ACCOUNTS AND HOW THE DEV -- HAVE THE CAPACITY TO PAY USING STABLECOINS.
CAROLINE: JUST A FOLLOW UP AS I STEPPED ALL OVER ED'S QUESTION. AS IT REMAINS ITS -- IS IT REMITTANCE? WE HAVE ARGENTINA, A COUNTRY THAT HAS HUGE INSTABILITY IN ITS OWN CURRENCY ON THE BACK OF POLITICAL HEADWINDS OR CONCERNS AND A LACK OF SECURITY AS IT STANDS. I'M INTERESTED, IS REMITTANCE WHAT IT WILL BE FOR PAYPAL? >> I THINK THAT THERE ARE THREE BIG PLACES WHERE THIS WILL COMPLETELY CHANGE. THE FIRST IS REPAYMENT SYSTEM, AND WHO ARE YOU HAVE U.S. CURRENCY GOING INTO THESE AREAS
WHERE YOU ARE ORDERING STUFF ALL OVER THE WORLD, INSTEAD OF WAITING FOR 3-5 BUSINESS DAYS WERE LOOKING AT YOUR VERIFICATION OF THE CARDS. YOU HAVE A PAYMENT SYSTEM, THE BUSINESS PAYMENT SYSTEM FOR SMALL BUSINESSES, THIS IS A GAME CHANGER DOMESTICALLY AND GLOBALLY. IT DOES CHANGE AND TAKE AWAY TECHNOLOGY THE AMOUNT OF TIME IT TAKES FOR YOUR MONEY TO SETTLE, FOR IT TO REACH IN A VERIFIED MANNER. THE COSTS ASSOCIATED WITH IT, APART FROM THE GAS COSTS, IT DOES NOT TAKE 3% OFF OF YOUR VISA FEE OR CARD FEET -- IT DOES TAKE 3% OFF YOUR VISA FEE OR YOUR CARD FEE. COMING FROM THE WORLD BANK, WE
HAVE TAKEN FIVE BUSINESS DATYS, THIS CHANGES THE GAME WITHIN LESS THAN 30 SECONDS SETTLEMENTS. TECHNOLOGY WISE, IT IS GREAT BUT ONE THING THAT WAS OF THE PEOPLE ARE NOT TALKING ABOUT IS SOMETHING TO LOOK, WHEREVER A GLOBAL POLITICS ARE MOVING, OUR DEBT CRISIS, THIS IS BECOMING, BUT COINDESK CHANGE AND REINFORCE THE UST AS THE MOST IMPORTANT CURRENCY AND THE SUPREMACY OF THE CURRENCY IN THE PAYMENT SYSTEM. MANY HAVE BEEN SHINING A LIGHT WERE ON THE REGULATORY CONCERNS OF THE U.S.. REGARDING ALL THINGS CRYPTO. BUT ALSO STABLECOINS, THE WORRY THAT THESE ARE NOT TRANSPARENTLY BACKED IN SOME WAYS? ED: TRANSPARENCY OR A LACK OF, I WANT TO MAKE ONE POINT, THE QUESTION IS DO REGULATORS LOOK AT PAYPAL AND SAY CREDIBILITY? PAYPAL IS GETTING INTO THE SPACE, WE ARE MORE INTERESTED IN ENGAGING AND SEEING THIS THROUGH THE LENS OF CREDIBILITY? >> IT IS VERY EASY TO PUT THE IDEA THAT THESE ARE THE QUARTERLY BASIS OR THE MONTHLY BASIS TO SHOW US HOW DO YOU REALLY HAVE YOUR RESULT YOUR TREASURY MANAGEMENT? THOSE ARE THE VERY EASY THINGS WHICH EVEN FOR COMPANIES LIKE TOCO HAVE SET TELL US WHAT IS ACCEPTABLE? ANY OTHER TIME, THOSE ARE PURE AND CASH DEPOSITS, WHETHER THOSE ARE ACCOUNTS RECEIVABLE, JUST TELL US, WHAT ARE THE ACCEPTABLE WAYS AND YOU CAN DO ACCOUNTING OUTSIDE OF ANY NEWSPAPER WHICH IS ALREADY A PUBLIC COMPANY AND THEY WILL HAVE THEIR ACCOUNTS MADE PUBLIC. I DO NOT THINK THAT SHOULD BE A CONCERN. IF I WOULD BE ON THE REGULATORY
BODY I WOULD BE SAYING IS HOW CHINA HAS USED THIS ACROSS AFRICA AND ACROSS LATIN AMERICA TO MAKE SURE THAT THE PAYMENT OR BLOCKCHAIN USING THEIR CURRENCY OVER THE INSTANT SETTLEMENT NOW HAS BECOME A BIGGER ISSUE IN THE INTERNATIONAL TRADE AND WHY SHOULD THE U.S. BEHIND AND USE THIS AS A WAY TO COMPLETELY GO OUT AND SET THEMSELVES UP? ED: HAVING BEEN WITH THE WORLD BANK I HAVE SEE, I AM INTERESTED, IN YOUR EXPERIENCE, YOU BACKED POLYGON SOFTWARE AND COMPANIES WELL KNOWN IN THE CRYPTO AND BLOCKCHAIN SPACE? DOES THIS MAKE CRYPTO AND BLOCKCHAIN MORE EXCITING FOR U.S. INVESTORS FOR YOU AT THE MOMENT? >> I THINK FIRST OF ALL, IT DEFINITELY PUTS EIGHT A PREMIUM FOR WHAT IT SHOULD LOOK LIKE, TECHNOLOGY-BASED PLATFORM AND NOT JUST A SPECULATIVE FINANCIAL ASSETS. I DO THINK THAT PEOPLE WHO SEE THAT THERE IS A LOT OF TECHNOLOGY USAGE FOR BLOCKCHAIN BUT WE HAVE BEEN TALKING ABOUT WHETHER YOU USE ETHEREUM OR POLYGON ON TOP OF IT OR OPTIMISTIC ROLLOUTS, THE SECOND THING WHICH I AM EXCITED ABOUT IS THIS OPENS UP THE WHOLE CONVERSATION WHICH THE SEC HAS FOR THE LONGEST TIME HAS BEEN TIPTOEING. IF YOU ARE LOOKING AT A SPEC DATE OF FINANCIAL MEANS OR A TECHNOLOGY, I AM EXCITED THAT NOT ONLY FOR U.S. REGULATORS, BEFORE THE WHOLE WORLD BUT THERE IS A HUGE GAME CHANGING TECHNOLOGY WHICH IS HERE TO STAY AND READY TO ROLLOUT. ED:
THOSE ARE BLOCKCHAIN IS VERY GOOD, THANK YOU, COMING UP ON THE PROGRAM, 40-YEAR-OLD FIRM IS HEADING TO LONDON, MORE ON THE NEWS, NEXT, WITH IVP PARTNER, ERIC LIAW. SHARES OF NVIDIA UP 5%, MORGAN STANLEY IS OUT SAYING THAT BUY THE STOCK, THIS IS 90% YEAR-TO-DATE AND THERE HAS BEEN A PULLBACK IN AUGUST. WE HAVE EARNINGS NEXT WEEK, IT IS A QUESTION IN A TIME TO SEE -- AND A TIME TO SEE IF PEOPLE PUT MONEY WHERE THEIR AI MOUTH IS, IS ALL OF THE HYPE AROUND AI TRANSLATING TO BIG GROWTH FOR GPU'S AND THE DATA CENTERS? WE WILL KEEP TRACKING IT. THIS IS BLOOMBERG. ED: AFTER NEARLY 20 YEARS OF INVESTING IN EUROPE, SILICON VALLEY SILICON VALLEY FIRM IVP TAKES THE LEAP AND IS OPENING AN OFFEICE IN THE U.K., RELOCATING TO LONDON IN 24
HOURS TIME, JOINS US NOW, I WANT TO START WITH A BIG QUESTION WHICH AS YOU HAVE CHOSEN LONDON, YOU ARE INVESTING IN EUROPE, WHY LONDON AND NOT THE CAPITAL OF CONTINENTAL EUROPE? ERIC LIAW: LONDON IS CLOSER IN TIME ZONE. IT IS EASIER FOR MY FAMILY, MY WIFE AND CHILDREN ARE JOINING THE DECK PICK. I HAVE DISCOVERED IN MY DECADE PLUS INVESTING IN LONDON THAT I AM LUCKY THAT MOST PEOPLE IN EUROPE ARE DOING BUSINESS IN ENGLISH, THERE ARE HOURS OUTSIDE OF THE DAY THAT IT IS EASIER FOR US. ED: MANY WHO SAY LONDON IS JUST FINTECH AND NOTHING ELSE.
YOUR RESPONSE? ERIC LIAW: WE HAVE SEEN A LOT OF FINTECH INVESTING THERE, WE HAVE MADE OUR FIRST LONDON-BASED INVESTMENT IN FINTECH COMPANIES RECENTLY CALLED VOLT.IO. FORCING AI COMPANIES ATTRACT TALENT AND BEING BUILT THERE AND WE CONTINUE TO EXPECT THAT. CAROLINE: IVP IS NO STRANGER TO THE FINTECH OS THAT LONDON -- PROWESS THAT LONDON HAS MANAGED TO BUILD. YOU ALSO KNOW A LOT OF THESE COMPANIES AND YOU ARE WRITING NEW STUFF, WHAT ARE YOU THINKING FROM TO PUT MONEY IN ACROSS EUROPE? ERIC LIAW: WE HAVE ALREADY MADE TWO INVESTMENTS BASED IN EUROPE, IN GERMANY AND GRAMMAR ELITE WHICH HAS ITS ROOTS IN UKRAINE, WE ARE EXCITED TO SEE THAT TREND CONTINUE. THIS IS BEEN A DRIVER OF THE ACTIVITY OVER THE LAST DOZEN YEARS OR SO FOR US WE ARE SAYING INVESTMENTS ACROSS A VARIETY OF TECHNOLOGY SECTORS FROM MOBILE GAMING IN HELSINKI TWO SOFTWARE COMPANIES IN PARIS. WE ACTUALLY THINK THAT THE
ENTREPRENEURS IN EUROPE ARE QUITE CREATIVE AND THEY WILL COME UP WITH SOLUTIONS THAT WE WILL WANT TO EVALUATE. CAROLINE: YOU CAN TELL FROM OUR ACCENTS FOR BOTH ED AND I, IT IS ED IS WELSH, WE HAVE BEEN TALKING ABOUT THE EUROPEAN ECOSYSTEM AND THERE HAS NEVER BEEN THIS REALLY STAND OUT COMPANY, AS MUCH AS THEY HAVE WISHED IT, YOU HAVE SEEN WHEN DEEP MINE WAS SOLD TO GOOGLE, THERE IS A DESIRE TO SEE THE EQUIVALENT OF A SILICON VALLEY GIANT, WILL THAT HAPPEN IN EUROPE? DOES IT HAVE TO HAPPEN? ERIC LIAW: I THINK IT HAS ALREADY HAPPENED IN MANY AREAS, SPOTIFY IS A GLOBAL LEADER IN THEIR CATEGORY. THAT IS THE TIP OF THE ICEBERG, THERE IS A SUPER CELL ASPIRATION, NOT TO BE THE BEST GAMING COMPANY IN FINLAND BUT ONE OF THE BEST IN THE WORLD AND THEY HAVE BEEN ABLE TO DELIVER ON THAT. I THINK THE TREND WILL CONTINUE
AND THAT IS WHY WE ARE CONTINUING THIS. ED: A BIG STORY HAS BEEN LEGAL DEVELOPMENTS IN ISRAEL, THE JUDICIAL OVERHAUL AND ITS IMPACT ON THE TECHNOLOGY SECTOR, HOW DOES IVP VIEW ISRAEL? ERIC LIAW: WE FIND IT QUITE INTERESTING, WE HAVE A NUMBER OF COMPANIES WHO HAVE A PRESENCE THERE AND WE WILL CONTINUE TO SPEND TIME THERE. I'M UNDERQUALIFIED TO MAKE OBSERVATIONS ABOUT THE CONSTITUTIONAL SYSTEM THERE.
WE WILL TRY TO EVALUATE OTHER RISKS INCLUDING POLITICAL RISKS. I HOPE THAT ISRAEL WILL COME OUT ON THE OTHER IS A BIT. ED: LET US GET THE ON THE GROUND STORY, YOU ARE GOING TO GET ON AN AIRPLANE AND FLY TO EACH CAPITAL CITY IN EUROPE, HOW WILL YOU GO AND SET UP A NEW COVERAGE AREA? BE FOUNDERS? ERIC LIAW: THAT IS EXACTLY WHAT WE ARE DOING, I AM MOVING WITH MY FAMILY, LITERALLY IN 36 HOURS, WE HAVE TWO TEAM MEMBERS ON THE GROUND ALREADY. WE ARE HIRING BACK ONE OF OUR FORMER COLLEAGUES TO HELP LEAD THE EFFORT IN LONDON. I KNOW YOU SAID CAPITAL CITIES
BUT I WOULD PUT FORTH WE WILL SPEND TIME IN COLOGNE, IT IS NOT THE CAPITAL OF GERMANY, BUT WE ARE SPENDING TIME IN MAJOR TECH HUBS ALL THROUGHOUT THE CONTINENT. CAROLINE: ERIC, WHAT IS THE VALUATION STORY LIKE IN EUROPE? WHAT IS THE DIFFERENCE IN CULTURE OF WRITING CHECKS THAT YOU ARE LOOKING TO BECOME AN EXPERT IN? ERIC LIAW: THE VALUATION ENVIRONMENT MORE BROADLY HAS PROCEEDED FROM THE EXCESSES OF 2021, THAT IS ALSO MAKING THIS AN INTERESTING TIME TO THINK ABOUT GOADING OUR PRESENCE THERE. I WOULD SAY THAT THE CHANGE COMPARED TO THE FIRST FIVE OR 10 YEARS OF MY CAREER AS FAR AS INVESTING IN EUROPE GOES, I THINK THE OPPORTUNITIES AND DIVISIONS AND THE ASPIRATIONS ARE GREATER AND IN MANY CASES THAT WILL BE JUSTIFIED BY THE X EVALUATIONS WHICH TRICKLES DOWN TO THE ENTRY EVALUATIONS THAT NEW INVESTORS ARE PLAYING -- ENTRY EVALUATIONS NEW INVESTORS ARE PAYING TODAY. CAROLINE: I AM EXCITED TO GO OUT AND SEE YOU IN EUROPE. SAFE TRIP OVER TO LONDON TOMORROW! ERIC LIAW: THANK YOU VERY MUCH. CAROLINE:
BRILLIANT TO HAVE THE EXCLUSIVE NEWS. FINDINGS ARE TRICKLING IN ON WHAT THE REPORTS ARE REVEALING ABOUT HOW HEDGEHOGS THE INVESTING IN A SECOND-QUARTER RUN? ED: YOU BRING UP 13F, THE CHIP NAMES MOVING TO THE UPSIDE, LOOK ON THE BLOOMBERG TERMINAL, THERE HAVE BEEN FUNDS ADDING THESE NAMES. BRIDGEWATER HAS ADDED TO ITS MY CURRENT POSITION, AMD, ANOTHER ONE, WHEN WE SEE NAMES ADDING, GROWING THEIR POSITIONS IN THOSE STOCKS, WHAT IS IT ABOUT THESE 13FS? THIS IS BLOOMBERG TECHNOLOGY. ED: GOING VIRAL, LET US GET BACK TO THAT LATEST OUT OF THE ZUCKERBERG-MUSK CAGE FIGHT.
MARK ZUCKERBERG IS TELLING SPECTATORS TO MOVE ON FROM THE CAGE FIGHT, HE TOOK TWO THREADS SAYING THAT HE WILL FOCUS ON FINDING PEOPLE WHO ACTUALLY WANT TO FIGHT, WHO ARE INTO MMA. IF ELON MUSK IS EVER SERIOUS YOU KNOW HOW TO REACH HIM. ELON MUSK HAS AN INJURY THAT REQUIRES SURGERY. CAROLINE: HE HAS SUGGESTED THEY HAVE A PRACTICE IN A MIXED MARTIAL ARTS FACILITY THAT ZUCKERBERG HAS. HE SAYS I WILL COME KNOCK ON YOUR DOOR, IT FEELS AS THOUGH MARK ZUCKERBERG DOES NOTHING ELON MUSK AS BEING SERIOUS AT ALL HERE. ED: HE HAS BEEN CONSISTENTLY SKEPTICAL. HIS OTHER TWO WORLD -- THESE
ARE THE WEALTHIEST MEN IN THE WORLD WANTING TO FIGHT IN A CAGE. IT LOOKS LIKE RIGHT NOW, IT IS NOT HAPPENING. CAROLINE: WHAT IS HAPPENING? SOME REAL, HARD FACTS IN TERMS OF WHERE PEOPLE ARE ALLOCATING FUNDS AND TAKING MONEY OUT, THERE IS A HEDGE FUNDS EXPLOSION. SECOND-QUARTER IN THE SO-CALLED ROUTINE F FILINGS ARE TRIP FEEDING OUT, -- CALLED 13F FILINGS ARE DRIP FEEDING OUT. SOME KEY FINDINGS FROM YOUR
PERSPECTIVE? WHAT BIG PICTURE ARE WE SAYING IN TERMS OF TECH BUYING OR SELLING? >> A LOT OF CLIENT IN THE TECHNOLOGY SPACE, THAT IS AMONG THE HEDGE FUNDS THAT ARE FILED SO FAR, MORE THAN 5000 HEDGE FUNDS HAVE A WAIT TO GO, MANY OF THEM WAIT UNTIL LATER IN THE DAY TO FILE. MICROSOFT, APPLE, AMAZON, NVIDIA, THESE ARE THE POPULAR BUYS AMONG THE HEDGE FUNDS. WE ARE SEEING SOME SELLING OR REDUCING OF STAKES ACROSS ENERGY, FINANCIALS, AND HEALTH CARE. INTERESTING TO SEE A PUSH TOWARDS THE SPACE, I'M PRETTY BIG HEDGE FUND MADE A SIGNIFICANT BIT ON THE NASDAQ 100 ETF, GROWING THAT POSITION TO $2.8 BILLION. HE ALSO BOUGHT OP MICROSOFT AND AMAZON. ED:
HOW HAVE COMPANIES BEEN IN THIS? >> THEY HAVE CONTINUED THEIR BUYING SPREE, THEY TOOK OFF THEIR EXPOSURE AS THE MARKET WAS UNPREDICTABLE AND THEY ARE JUMPING BACK IN, INCREASING THEIR EXPOSURE TO THE MARKETS, THEY TOOK 23 NEW POSITIONS AND COMPANIES, THE INCREASE THEIR STAKES IN 21 OTHERS, IN THE THINGS THAT THEY BOOSTED THEIR INVESTMENTS IN, MICROSOFT AND AMAZON ARE THEIR FAVORITES. CAROLINE: WHAT ABOUT SELLING? >> QUITE INTERESTING ON THE DECREASING OF POSITIONS, SOME OF THESE HOT TECH COMPANIES, NVIDIA, META, TESLA, THE QUESTION IS ARE THESE FUNDAMENTAL CHANGES IN VIEW? IT IS UNLIKELY. THERE HAVE BEEN PRETTY VOCAL SUPPORTERS OF NVIDIA AND AI MOVES, WHAT MAY BE HAPPENING HERE IS PORTFOLIO MANAGEMENT, EXPOSING TO PROFITS, ADJUSTING THE PORTFOLIO SO YOU ARE NOT OVERSIZED IN SOME EXPOSURES SO THAT CAN BE WHY WE ARE SEEING A BIG PULLBACK IN THESE HOT TOPICS. CAROLINE: MASTEC 100 DID ITS DISTRIBUTION EARLIER IN THE MONTH. I DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY! WHEN ARE WE BACK TOGETHER AGAIN? ED:
2023-08-15 13:31
