BYD Sales Soar, AI to Protect Kids Online, Airbus CEO | Bloomberg Technology
ANNOUNCER: FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. MATT: WE ARE LIVE FROM NEW YORK CITY. I AM MATT MILLER. THIS IS "BLOOMBERG TECHNOLOGY." U.S. CEO'S ARE IN BEIJING AS CHINESE LEADERS PREPARE FOR TARIFFS THAT EXCEED EXPECTATIONS. BYD BEATS, THE CHINESE ELECTRIC VEHICLE MAKER POSTED MORE FOR YOUR REVENUE THAN TESLA EVEN AS IT SOLD FEWER CARS.
AND AN EXCLUSIVE INTERVIEW OF WITH THE CEO OF AIRBUS AS THE COMPANY LOOKS TO RAMP UP PRODUCTION OF THE NEXT GENERATION JETS. FIRST, LET'S CHECK WHAT IS GOING ON IN THE U.S.. EVEN AS CHINA IS PREPARED FOR SHOCKS OF EXCEEDING ESTIMATES, TRADERS SEEM TO THINK PRESIDENT TRUMP WILL HAVE TARGETED TARIFFS. THAT HAS DRIVEN US TO SESSION HIGHS. ON THE NASDAQ, UP OVER 20,000. TESLA STOCK IS RIPPING FACE
TODAY. REGARDLESS OF WHAT HAPPENS AT BYD, TESLA UP 10% AFTER FALLING 50% IN DECEMBER. BYD UP FIVE POINT 7% AFTER BEATING ON REVENUE AND THE BOTTOM LINE -- 5.7% AFTER BEATING ON REVENUE AND THE BOTTOM LINE. NVIDIA ADDING 10 POINTS TO THE S&P 500. AMD ALSO UP ON HOPES TARIFFS
WILL BE TARGETED AS OPPOSED TO SWEEPING. REAL FOCUS ON CHINA. THAT COUNTRY IS HOSTING ITS ANNUAL DEVELOPMENT FORM. TOP EXECUTIVES ARE THERE INCLUDING APPLE'S TIM COOK. THERE ARE PLANS TO MEET PRESIDENT XI JINPING AND OTHER LEADERS. WE HAVE HEARD THE CHINESE PREMIER SAID AT THIS TIME I THINK IT IS EVEN MORE IMPORTANT FOR EACH OF OUR COUNTRIES TO OPEN UP MARKETS AND FOR ALL OF OUR BUSINESSES TO SHARE RESOURCES MORE. THIS AS THE WORLD BRACES FOR PRESIDENT TRUMP TO ANNOUNCE MORE TARIFFS ON TRADING PARTNERS APRIL 2.
MIKE SHEPARD JOINS US. IT SEEMS TRADERS ON WALL STREET ARE MORE OPTIMISTIC THAN LEADERS IN BEIJING. WHY DO YOU THINK THERE IS THE MISMATCH? >> IT COULD BE SOME OF WHAT WE ARE HEARING IN WASHINGTON HAS NOT FILTERED BACK TO AUDIENCES IN THE CHINESE CAPITAL. THERE IS ALSO THE NEED FOR LEADERS IN CHINA TO TELL THE PUBLIC AND BUSINESSES TO BRACE FOR THE WORST. IT IS A WAY FOR THEM TO SAY WE HAVE TO GET OUR ACT TOGETHER DOMESTICALLY WITH OUR ECONOMY, ESPECIALLY IF THE WORST COULD BE COMING.
THEY ALSO KNOW THAT EVEN IF TRADERS AND JOURNALISTS ARE HEARING FOR THE FIRST ROUND OF TARIFFS IT WILL NOT BE QUITE SO BAD, THINGS ARE STILL VERY FLUID. WE HEARD FROM A WHITE HOUSE OFFICIAL THIS MORNING, OUR COLLEAGUE JOSH, WHOSE SCOOP OVER THE WEEKEND, ADDED TO THE REPORTING, THAT THINGS MAY BE EASIER. A WHITE HOUSE OFFICIAL SAID THINGS ARE NOT DECIDED YET. THEY ARE STILL FLUID. WE MAY SEE THE TARIFFS PEOPLE ARE WORRIED ABOUT ON CHIPS, AUTOS, AND DRUGS THAT MAY HAVE BEEN PUT INTO PLAY EARLIER BY TRUMP MAY HAVE BEEN TAKEN OFF THE TABLE FOR NOW.
JOSH'S REPORTING IS SIGNALING IT IS NOT A DONE DEAL YET. MATT: WHAT ARE WE EXPECTING? I THOUGHT THE IDEA WAS WHATEVER YOU CHARGE US, WE ARE GOING TO CHARGE YOU. IF EUROPE HAS 10% TARIFFS ON AUTOS AND WE ONLY HAVE 2.5%, WE WILL RAISE OUR TARIFF TO THAT LEVEL. SAME ON DAIRY PRODUCTS OR MEEATS, ACROSS THE BOARD. I THOUGHT PRESIDENT TRUMP WOULD CHARGE THEM WHAT THEY CHARGE US AND THAT KEEPS IT IN HIS MIND FAIR.
>> YOU ARE RIGHT. HE HAD BEEN TALKING ABOUT TARIFFS IN TWO LINES. ONE IS THE IDEA OF RECIPROCAL TARIFFS, WE CHARGE YOU WHAT YOU CHARGE US.
NO MATTER WHAT, THEY WILL FIND A WAY TO EVEN THINGS OUT, THE WAY THE PRESIDENT LIKES TO TALK ABOUT IT, TO KEEP IT FAIR IN HIS VIEW. THEY ALSO TALKED ABOUT MEASURES IN WHOLE SECTORS PER THAT DID INCLUDE COMPUTER CHIPS, PHARMACEUTICALS, AND AUTOS. THE PLANNING FOR THAT WAS NOT AS CLEAR.
WE HAVE GOTTEN SIGNALS ON THE TYPICAL TARIFFS FRONT. SCOTT BESSENT HAS TRIED TO NARROW THE PLAYING FIELD OF COUNTRIES IN GOODS AND CATEGORIES THAT MIGHT BE TARGETED. LAST WEEK, HE WAS TALKING ABOUT THE 15 WORST OFFENDERS, FOR LACK OF A BETTER WORD, WHERE THEY WANT TO CONCENTRATE FIRST IN TERMS OF CRAFTING RECIPROCAL TARIFFS. AS WE SAW THIS MORNING WITH TRUMP ANNOUNCING TARIFFS ON OTHER COUNTRIES THAT BUY OIL AND GAS FROM VENEZUELA, ANYTHING COULD BE IN PLAY AT ANY MOMENT. WE ARE WAITING ANXIOUSLY OR NERVOUSLY FOR WHATEVER COMES OUT ON APRIL 2 AND TRYING TO REPORT THAT AHEAD OF TIME. MATT: MIKE SHEPARD FROM OUR WASHINGTON, D.C., BUREAU.
BYD SALES SURPASSED $100 BILLION MARK IN 2024, LEAPFROGGING ELON MUSK'S TESLA ON REVENUE. BUT THE SHARES ARE NOT GAINING QUITE AS MUCH AS TESLA, UP 6%, BUT TESLA IS UP 10% TODAY, THE BIGGEST GAIN SINCE NOVEMBER 11. LET'S GET TO LONDON AND TALK WITH OUR CAR CZAR. WHAT IS BYD DOING DIFFERENTLY FROM TESLA? >> I THINK THEY HAVE HAD THIS CONSISTENT PLAYBOOK OF WE ARE GOING TO GIVE CONSUMERS A BROAD RANGE OF VEHICLES.
WE ARE NOT GOING TO BE DOGMATIC ABOUT BATTERY ELECTRIC VEHICLES ONLY. WE ARE GOING TO OFFER PLUG-IN HYBRIDS AS WELL. THE FACT WE HAVE SEEN A GLOBAL TREND EVEN IN PLACES LIKE CHINA WHERE BATTERY ELECTRIC VEHICLES IS MANY MULTIPLES OF WHAT GETS SOLD ANYWHERE ELSE IN THE WORLD, EVEN THERE WE ARE SEEING SLOW DOWN IN TERMS OF THE TAKE-UP OF FULLY ELECTRIC VEHICLES. WE ARE SEEING AN ACCELERATION
IN DEMAND FOR PLUG-IN HYBRIDS. BYD HAS BEEN ON THE LEADING EDGE OFFERING EXTENDED RANGE ELECTRIC VEHICLES. IF YOU THINK BACK TO THE CHEVY VOLT GENERAL MOTORS BROUGHT OUT MORE THAN A DECADE AGO, IT IS SIMILAR WITH THAT KIND OF TECHNOLOGY WHERE THE ENGINE IS NEVER DIRECTLY POWERING THE WHEELS. THEIR ABILITY TO OFFER PLUG-IN AND HYBRID AND FULLY ELECTRIC VEHICLES AT EXTREMELY AFFORDABLE PRICES HAS ALLOWED THEM TO ACHIEVE SCALE TESLA CAN ONLY DREAM OF AT THIS POINT. MATT: I KNOW JIM FARLEY IS PUMPED ABOUT THE E-REVS, SO HAVING AN ENGINE ON BOARD THAT POWERS THE BATTERY AND NOT THE WHEELS. WE WILL START SEEING THOSE COME
OUT OF DETROIT SOON AS DODGE WILL PUT OUT THE E-REV CHUCK. -- TRUCK. I NOTICED BYD HAS RAISED MORE THAN $5 BILLION IN THE SECONDARY OFFERING. COMING FROM A NEW YORK PERSPECTIVE WHERE IPO'S ARE FAIRLY SLOW, HONG KONG LOOKS LIKE IT IS ON FIRE.
THIS HELPS THE COMMUNIST PARTY TO POWER AHEAD ON EV'S IN A WAY THAT IS NOT POSSIBLE TO DO IN AMERICA. CRAIG: I THINK THAT IS ABSOLUTELY THE RIGHT READ. WE DID SEE A FEW YEARS BACK TESLA RAISE AT AN INCREDIBLE RATE WHEN THEY WERE GETTING MOMENTUM WITH THE MODEL 3 AND MODEL Y. TESLA WENT FROM A COMPANY STRUGGLING TO STAND ON ITS OWN TWO LEGS AND ACHIEVED ESCAPE VELOCITY AND TAPPED WALL STREET FOR A LOT OF MONEY. WE DID SEE AN ACTIVE ENVIRONMENT WHEN YOU THINK BACK TO THE LIKES OF LUCID OR RIVIAN THROUGH IPO.
WE DID GO THROUGH THIS SPURT OF ACTIVITY IN THE U.S. TO YOUR POINT, WE ARE SEEING THIS WITH BYD. EVEN CATL LOOKING TO DO A SECOND OFFERING IN ASIA. WE ARE SEEING AN ACCELERATION OF MAJOR PLAYERS IN THAT SPACE, RAISING AN AWFUL LOT OF MONEY EVEN BY TERMS OF BIG AUTOMOTIVE COMPANIES THAT ARE CASH HUNGRY. MATT: THANKS SO MUCH FOR JOINING US. CRAIG TRUDELL, OUR CAR CZAR.
COMING UP, THE CEO OF IDENTITY PROTECTION APP AURA JOINS US TO TALK ABOUT THE NEW TOOLS AIMED AT PROTECTING YOUTH MENTAL HEALTH. I'M WATCHING SHARES OF THE GERMAN SOFTWARE DEVELOPER UP 1.5%. RIGHT NOW, THE LARGEST COMPANY MATT: AS PARENTS LOOK TO KEEP THEIR KIDS SAFE ONLINE, IDENTITY PROTECTION FIRM AURA HAS RELEASED NEW TOOLS TO TRACK YOUTH MENTAL HEALTH. THE CEO AND THE COMPANY'S BIGGEST INVESTOR ARE WITH ME. I APPRECIATE YOU JOINING ME ON THIS TOPIC.
I THINK IT IS FINALLY GETTING THE ATTENTION IT DESERVES, THE DAMAGE SOCIAL MEDIA AND TECHNOLOGY DO TO THE MENTAL HEALTH OF OUR CHILDREN. JEFF, LET ME START WITH YOU AND ASK WHAT BROUGHT YOU TO THIS INVESTMENT? WHAT PUT YOU ON THIS PATH? JEFF: I SPENT 40 YEARS IN THE MEDIA AND ENTERTAINMENT BUSINESS AT THE WALT DISNEY STUDIOS AND DREAMWORKS AND EVERY DAY GOT UP AND WAS IN THE WORLD OF BRINGING TO PARENTS AND KIDS SAFE CONTENT AND THE APPRECIATION OF WHAT THAT MEANS. TODAY, KEEPING OUR KIDS SAFE HAS NEVER BEEN MORE CHALLENGING OR COMPLICATED BECAUSE OF THESE DEVICES AND THE ONLINE LIVES THAT WE HAVE. WHEN I PARENTED MY KIDS, THERE WERE THREE THINGS I WANTED TO KNOW. WHERE ARE THEY? WHAT ARE THEY DOING? AND WHO ARE THEY WITH? TODAY, YOUR KID CAN BE SITTING ACROSS FROM YOU AT THE KITCHEN TABLE WITH A PHONE IN YOUR HAND AND YOU CANNOT ANSWER THOSE THREE QUESTIONS.
AS YOU SAID, THERE IS A GROWING EPIDEMIC OF HOW DAMAGED AND DAMAGING WE ARE DOING TO OUR KIDS TODAY, THIS GENERATION. IT IS EXTRAORDINARY. I WILL READ A FEW STEPS TO FRAME HOW BIG THE PROBLEM IS. 20% OF ADOLESCENTS REPORT LOW
SELF-ESTEEM. 52% HAVE EXPERIENCED OR ARE EXPERIENCING AN EATING DISORDER. 70% OF TEENS SAY ANXIETY AND DEPRESSION IS A MAJOR PART AMONG THEIR PEERS. AND A SHOCKING 25% HAVE IDEATION AROUND SUICIDE.
THIS IS JUST -- WE ARE DESTROYING OUR KIDS. WHAT HARI HAS DONE AS THE FOUNDER OF THIS, THROUGH HIS OWN PERSONAL EXPERIENCE THAT HE SHOULD TELL YOU ABOUT DEALING WITH HIS OWN FAMILY, GOT ON THIS MISSION TWO YEARS AGO TO SAY, HE BUILT A COMPANY TO BRING SECURITY FOR FAMILIES ONLINE, NOW HE WILL BRING SAFETY. MATT: TELL US ABOUT YOUR EXPERIENCES BEFORE STARTING THIS COMPANY AND HOW YOU ARE SOLVING THE PROBLEM. HARI: I HAVE FOUR KIDS. ONE OF MY KIDS ABOUT TWO YEARS AGO WAS GOING THROUGH A TOUGH PATCH FEELING DEPRESSED, FEELING DOWN, SOME NEGATIVE COPING STRATEGIES WHICH WAS FRIGHTENING TO US AS A FAMILY. LEADING UP TO THAT, WE ARE A TIGHTKNIT FAMILY. WE SPEND TIME TOGETHER, ASK HOW SHE IS DOING, SHE SAYS EVERYTHING IS FINE. AS WE ARE GOING THROUGH THE
RECOVERY CYCLE, WE ASK HOW SHE IS DOING, SHE SAYS I AM DOING FINE. AS A PARENT, YOU ARE WONDERING, SHE IS SAYING THE SAME THING, IS SHE FINE OR NOT? WE STARTED LOOKING AROUND FOR TOOLS. DURING THAT JOURNEY, WE WERE PRIVACY ORIENTED, DURING THE JOURNEY, WE DID SPEND TIME WITH THE DEVICE AND THERE WERE THINGS I WISH WE HAD FOUND EARLIER BECAUSE WE MIGHT HAVE BEEN ABLE TO HELP HER SOONER. THERE WAS NOT ANYTHING TO GO DO THIS IN A SYSTEMATIC WAY. WE WERE ALREADY HELPING A LOT OF FAMILIES WITH THE CONTENT PROBLEMS THEIR KIDS HAD.
THIS WAS A NATURAL ENTRÉE FOR US AND A TOOL I NEEDED FOR MY OWN KIDS, SO I FIGURED THERE ARE ALSO FAMILIES THAT CAN USE THE SAME TECHNOLOGY AS WELL. MATT: JEFF, HOW DO YOU DEAL WITH THIS IN YOUR FAMILY? WE HAVE HEARD RECENTLY FROM KATE WINSLET WHO SAID HER METHOD IS JUST TO BAN ALL SOCIAL MEDIA HER CHILDREN. JEFF: IT IS IMPRACTICAL. WHAT YOU NEED TO DO AS A PARENT IS YOU NEED TOOLS AND INSIGHTS TO BE ABLE TO NAVIGATE AND HELP YOUR KIDS NAVIGATE THROUGH THESE CHALLENGES. WHAT YOU NEED FOR A 12-YEAR-OLD OR 13-YEAR-OLD IS DIFFERENT FROM WHAT YOU NEED FOR A 16-YEAR-OLD OR 17-YEAR-OLD. WHAT AURA HAS CREATED AND IS DELIVERING IS NOT SPYING, IT IS ABOUT GIVING THE PARENT INSIGHTS.
GIVING YOU ENOUGH KNOWLEDGE. YOU CAN STILL GIVE YOUR KIDS A LOT OF LEEWAY AND PRIVACY. YOU AS A PARENT ARE NOT GOING TO READ THEIR TEXTS. IF YOU DO THAT, THEY WILL FIND A WAY TO GET AROUND. THEY WANT SOME HELP, THEY WANT GUIDANCE. WE HEAR THAT FROM THE BETA, THE KIDS ON IT TODAY. THE ANALOGY WE GIVE YOU IS THAT
WHEN YOUR CHILD TURNS 16 AND GETS A DRIVER'S LICENSE, YOU DO NOT SEND THEM OUT ON THE HIGHWAY DOING 65 MILES AN HOUR WITHOUT PRACTICE, COACHING, AND EXPERIENCE AND TIME. WHY WOULD THIS BE DIFFERENT? WHY SHOULD YOU BE OUT THERE IN THAT WORLD IN THE WILDERNESS WITH NO GUIDANCE, NO HELP? PARENTS RIGHT NOW ARE REALLY STRUGGLING WITH THIS. IT IS WHY I AM PROUD TO BE ON THIS MISSION WITH HARI BECAUSE I THINK HE HAS CREATED SOMETHING THAT HAS GONE FROM A NICE TO HAVE TO SOMETHING ESSENTIAL. WE HEAR IT ALL THE TIME, PARENTS ARE DESPERATE FOR HELP. MATT: IS IT AN ARMS RACE? HAVE YOU FOUND A SOLUTION THAT WILL WORK FOREVER OR DO YOU HAVE TO CONTINUALLY DEVELOP THE TOOLS AS SOCIAL MEDIA CONTINUES TO DEVELOP? HARI: THERE IS CONTINUING INNOVATION. PEOPLE DO CATCH UP FROM BEHIND.
THE COMPETITIVE SET WITH THE AI REVOLUTION, BUILDING THINGS IS EASIER. YOU HAVE TO KEEP EVOLVING THE TECH AND FINDING MORE USE CASES. YOU HAVE TO DO A LOT MORE THAN THAT ESPECIALLY WITH AI MAKING THINGS SO UBIQUITOUS. MATT: CAN YOU WORK WITH OTHER SOCIAL MEDIA COMPANIES? JEFFREY KATZENBERG, YOU MUST KNOW SOME EXECUTIVES WHO RUN FACEBOOK OR TWITTER. CAN'T THEY BE HELPING AS WELL? IS IT A PROBLEM THEY SHOULD BE AWARE OF? JEFF: MAYBE THEY CAN, BUT THEY HAVE THEIR MISSIONS THEY ARE ON. I WANT TO BE CLEAR. NOT ALL SOCIAL MEDIA IS BAD.
THERE HAVE BEEN INCREDIBLE VALUE IS CREATED IN TERMS OF COMMUNITY, COMMUNICATIONS, AND KNOWLEDGE, AND EXTRAORDINARY ACCESS WE HAVE AND THE NEW GENERATION HAS WITH THESE TOOLS. THIS IS A BYPRODUCT OF IT. THE DEEP, DARK RABBIT HOLES THAT ONE CAN GO DOWN OR GET SUCKED INTO. WE ARE NOT POINTING FINGERS AT ANYBODY. WE ARE CREATING A SOLUTION. FRANKLY, I WOULD THINK THOSE COMPANIES WOULD BE THRILLED WITH THIS SOLUTION.
IN MY OPINION AND EXPERIENCE, THEY COME OUT OF A PERSON WITH ENOUGH TECHNICAL EXPERIENCE AND KNOWLEDGE IN AN AREA WHO SUDDENLY COMES UPON A MISSION. HARI FROM HIS EXPERIENCE WITH HIS OWN FAMILY HAS BEEN MISSION DRIVEN FOR THE LAST TWO YEARS. I THINK THAT IS WHAT HAS CREATED SOMETHING SO VALUABLE, PRACTICAL, AND OF THE MOMENT IN TIME. MATT: I APPRECIATE YOU BOTH COMING BY TO TALK ABOUT THIS. THIS IS AN ISSUE BLOOMBERG IS FOCUSED ON AS WELL.
I THINK ALL OF US CERTAINLY AS PARENTS. THANK YOU, JEFFREY KATZENBERG AND HARI RAVICHANDRAN OF AURA. I HAVE NEWS ON THE BLOOMBERG. XIAOMI IS LOOKING TO RAISE $5.5 BILLION. NOW THEY COULD RAISE MORE. SHARES INTRADAY ARE DOWN 1.3%. COMING UP, BITCOIN BRINGS ALONG SOME OF ITS BIGGEST INVESTORS.
WE WILL GIVE YOU MORE ON THAT AND COINBASE, NEXT. I AM ALSO WATCHING SHARES OF SUPER MICRO COMPUTER. THOSE SHARES DOWN IN TODAY'S UPMARKET. WE WILL TELL YOU WHY WHEN WE COME BACK. MATT:MATT: STRATEGY AND BITCOIN BOTH RISING.
THEY BOUGHT BITCOIN AFTER THE COMPANY RAISED MORE THAN $700 MILLION LAST WEEK FROM THE SALE OF PERPETUAL STOCK. DAVID JOINS US IN STUDIO. I GUESS IT IS SEMI-INTERESTING, AT LEAST IN TERMS OF THE WAY THEY RAISE MONEY. WHAT IS PERPETUAL STOCK? DAVID: IT IS LIKE A DEBT CAPITAL RAISE.
IT IS DIFFERENT FROM CONVERTIBLE BOND RAISES. I THINK IT IS A SIGN OF THEIR EFFORT TO TAP INTO ALL DIFFERENT KIND OF LEVERS TO RAISE CAPITAL FOR MORE BITCOIN FROM NOW ON. MATT: THAT IS ALL STRATEGY DOES. THEY HAVE A SMALL BUSINESS ON THE SIDE, A SOFTWARE BUSINESS? DAVID: THE ENTERPRISE SOFTWARE BUSINESS USED BY A VARIETY OF COMPANIES INCLUDING MCDONALD'S. IT HAD MORE SIGNIFICANT CASH FLOW BEFORE.
THIS YEAR WITH THE GAINS FROM THE BITCOIN HOLDINGS, IT IS LESS SIGNIFICANT ON THE BALANCE SHEET. MATT: IT SEEMS THIS COMPANY IS ALL ABOUT THE BITCOIN HOLDINGS, BITCOIN IS UP TODAY. IT LOOKS LIKE WITH THE RISK ON MOOD OF THE MARKET, HAS THERE BEEN ANY REVERSAL OF THAT CORRELATION? IS IT JUST HOW BITCOIN TRADES? DAVID: TYPICALLY WHEN WE SEE BITCOIN GOING DOWN, THERE TENDS TO BE A STRONGER CORRELATION WITH THE STOCK MARKET. THAT IS AN HISTORICAL TREND. WE ARE SEEING MACROECONOMIC FACTORS PLAYING A MORE IMPORTANT ROLE IN TERMS OF BITCOIN PRICES, DESPITE A LOT OF POSITIVE EVENTS THE LAST FEW WEEKS. THOSE KIND OF EVENTS HAVE NOT BEEN HAVING ANY BIG, POSITIVE IMPACT ON BITCOIN PRICES COMPARED TO MACRO. MATT:
IF THE GOVERNMENT DOES NOT BUY NEW BITCOIN FOR THE STRATEGIC WERE DESERVE -- RESERVE, THAT IS NOT AS POSITIVE AS BEFORE. 2025 SHAPING UP TO BE A BIG YEAR IN M&A WITH NEARLY $55 MATT: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I AM MATT MILLER IN NEW YORK. LET'S CHECK ON THE MARKETS.
AS OPTIMISM FOR TARGETED TARIFFS RATHER THAN SWEEPING TARIFFS BOOST THE INDEXES, THE NASDAQ UP 2% EVEN THOUGH WE HAVE NINE DAYS UNTIL THE TARIFFS ARE SET TO TAKE EFFECT ON APRIL 2. LET'S LOOK AT BIG MOVERS. TESLA CRUSHING IT TODAY UP MORE THAN 9%. WE HAVE SEEN AMAZING INFLOWS. J.P. MORGAN WAS OUT WITH DATA SHOWING RETAIL INVESTORS HAVE PUMPED $8 BILLION INTO THE STOCK IN THE 13 DAYS THROUGH LAST THURSDAY EVEN AS IT FELL 17%. THAT IS BECAUSE ELON MUSK HAS
SERIOUSLY DEDICATED FAN BOYS ON TWITTER. NVIDIA ADDING 10 POINTS TO THE S&P 500. META AND AMAZON BRINGING UP THE REAR. TECH DRIVING THE GAINS ON THE INDEX. TAKING A LOOK AT A FUND USING AN AI-POWERED MODEL WARNING AGAINST BUYING AI STOCKS HAS RETURNED 26% ANNUALLY THE PAST FIVE YEARS SO MAYBE ONE THAT YOU WANT TO LISTEN TO.
WHAT ARE WE TALKING ABOUT? >> WE ARE LOOKING AT A FUND OVERSEEN BY DANIEL THAT HAS OUTPERFORMED PEERS 95% IN THE LAST FIVE YEARS AND EVEN THE RUSSELL. HE SAYS THE TECH COMPANIES ARE STILL VOLATILE AND EVEN THE SELLOFF HAVE NOT MADE THESE COMPANIES CHEAP. HE STILL FINDS THEM HAVING FROTH VALUATIONS AND FINDS THEM VOLATILE IN THE PAST WEEKS AND THE YEARS TO COME. HE SAYS HE IS PREFERRING OTHER SECTORS.
THE THING ABOUT HIS FUND IS IT HAS A DECISION TREE ANALYSIS THAT MIMICS HUMAN THINKING. MATT: WHY DOES HE NOT LIKE TECH STOCKS A? >> HE SAYS THEY ARE VOLATILE AND HAVE FROTHY VALUATIONS. HE IS STILL INVESTED IN THEM BUT UNDERWEIGHT.
WE KNOW ACTIVE MANAGERS HAVE OUTPERFORMED PASSIVE INVESTORS THE PAST FEW YEARS. HE STILL OUTPERFORMS EVEN IF HE IS NOT ALL IN ON BIG TECH STOCKS. HE DOES NOT TRY TO FOLLOW FUNDAMENTAL NEWS EVEN WITH THE HEADLINE DRIVEN MARKETS WITH TARIFFS. HE SAYS HE DOES NOT WANT TO HAVE ANY BINARY OUTCOME.
HE IS INTERESTED IN THE FUNDAMENTALS OF THE STOCKS AND THAT IS WHY HE IS UNDERWEIGHT MEGA CAP STOCKS. MATT: DOES HE HAVE ANY DISCRETION IN THE FUND? IT IS NOT SET PARAMETERS FROM A PROGRAM? >> IT USES DECISION TREE ANALYSIS. THERE IS A BRANCH. YOU ANSWER YES OR NO.
IT HAS A BLACK BOX SYSTEM. WITH HIM, YOU CAN SEE THE RATIONALE BECAUSE OF THE DECISION TREE MODEL. HE ALMOST NEVER TRIES TO INSERT HIS DISCRETION UNLESS THERE IS ROUGH INPUT WHEN IT COMES TO DATA. HE HAS BEEN DOING IT THE PAST 20 YEARS. MATT: HE DOES STICK TO THOSE PARAMETERS AND IT DOES NOT HURT RETURNS APPARENTLY. THANK YOU, ISABELLE LEE.
START UP ACQUISITIONS HAVE KICKED OFF 2025 WITH A BOOM AS EVIDENCED BY THE 32 BILLION DOLLARS GOOGLE DEAL FOR THE CYBERSECURITY FIRM. HERE WITH MORE IS KATIE ROOF JOINING US IN STUDIO. GOOD TO HAVE YOU ON THIS SIDE OF THE CONTINENT. M&A OVERALL HAS BEEN KIND OF A SNOOZE COMPARED TO WHAT WE WERE EXPECTING. IN YOUR CORNER OF THE UNIVERSE WHICH IS VENTURE CAPITAL AND START-UPS, IT HAS BEEN ON A TEAR. KATIE:
WE HAVE SET A RECORD FOR DOLLARS BUT ALREADY TIED THE QUARTERLY RECORD. WE HAVE HAD $11 BILLION START UP SALES. WE HAVE ONE WEEK LEFT. PART OF THIS IS DRIVEN BY THE PERCEPTION TRUMP WILL BE BETTER FOR REGULATION. THERE HAVE BEEN MIXED COMMENTS ON THAT. THAT DID PLAY A ROLE WITH WIZ. THEY TURNED IT DOWN THE OFFER FROM GOOGLE LAST YEAR BECAUSE THEY WERE WORRIED ABOUT THE ADMINISTRATION BLOCKING DEALS. THEY ARE HOPING THIS TIME WILL
BE BETTER. THERE ARE OTHER FACTORS. THERE IS MARKET VOLATILITY PARTLY DUE TO THE TARIFFS. DAVE CHEN SAID START-UPS SAYING THE VOLATILITY MAKES THEM MORE LIKELY TO SELL BECAUSE THEY ARE WORRIED ABOUT IPO. MATT:
VOLATILITY IS ANOTHER WORD FOR DROPS, I HAVE LEARNED. WE HAVE SEEN A CORRECTION IN THE TECH SECTOR AND THE BROADER MARKET. DOES THIS MARKED A BOTTOM? WILL WE SEE A TURN AROUND? KATIE: IN TERMS OF IPO'S, WE ARE LOOKING AT UP TO EIGHT VENTURE-BACKED WHICH IS MORE THAN WE HAVE SEEN IN RECENT YEARS. THERE ARE 1000 THAT HAVE YET TO EXIT PIT THEY NEED TO IPO OR GET ACQUIRED. EVEN IN THE 11 START UP SALES COMING UP, WE ARE NOT EVEN CLOSE TO WHAT WE NEED FOR LIQUIDITY IN THE ECOSYSTEM. MATT:
I GUESS THAT MEANS THIS WILL CONTINUE. WILL WE CONTINUE TO SEE RECORD M&A IN START-UPS? KATIE: POSSIBLY. ESPECIALLY IF THEY FEEL THE BAR HAS GOTTEN HIGH TO IPO AND MARKET CONDITIONS ARE NOT PERFECT LIKE 2021, WE MAY SEE SOME TAKING THAT BIRD IN HAND EVEN IF IT WAS NOT THEIR DREAM PRICE. MATT: KATIE ROOF TALKING TO US ABOUT START UP M&A.
COMING UP, AN EXCLUSIVE CONVERSATION WITH THE CEO OF AIRBUS. THIS IS BLOOMBERG. ♪ PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS AT APPLE. >> WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I AM GUY JOHNSON TAKING OVER FROM MATT MILLER THE NEXT FEW MINUTES. I'M TAKING YOU TO THE AIRBUS HEADQUARTERS IN FRANCE WHERE CUTTING-EDGE TECHNOLOGY IS A DAY TO DAY ACTIVITY. WE ARE AT THE AIRBUS SUMMIT DISCUSSING WHAT IS HAPPENING WITH THE NEXT GENERATION OF AIRCRAFT AND TECHNOLOGY THAT WILL GO INTO THEM. I HAVE THE PLEASURE OF BEING
JOINED BY THE CEO OF AIRBUS. FANTASTIC TO BE WITH YOU AT THE SUMMIT. THE SUMMIT WE ARE AT AT THE MOMENT, THE BIG FOCUS IS SUSTAINABILITY.
THE BIG TECHNOLOGY WE ARE TALKING ABOUT IS SUSTAINABLE AVIATION FUEL. OTHER TECHNOLOGIES BECKON IN THE FUTURE. >> THE TARGET NOW IS TO MAKE AVIATION NET-ZERO COMMON BY 2050. IS THAT STILL ACHIEVABLE? >> IT REMAINS THE TARGET. THERE ARE PLENTY OF REASONS TO
BELIEVE IT CAN BE ACHIEVED. THERE ARE ALSO SOME CHALLENGES. THE REASON WE HAVE THE SUMMIT IS TO DISCUSS THOSE TOPICS, WHAT GOES WELL, WHAT NEEDS TO BE DONE DIFFERENTLY. AIRBUS REMAINS COMMITTED TO CARBON NEUTRALITY BY 2050.
TOMORROW, WE WILL BE SHARING GOOD NEWS ON PROGRESS. WE KNOW WE NEED TO DO MORE WORK ON IT. GUY: IS IT POSSIBLE WITH DONALD TRUMP IN THE WHITE HOUSE? HE DOES NOT SEEM TO SEE THE UNITED STATES AT THE FOREFRONT OF GREEN TECHNOLOGY. IN FACT, HE IS GOING IN THE OPPOSITE DIRECTION. CAN 2050 BE ACHIEVED WITH DONALD TRUMP IN THE WHITE HOUSE? >> IT RELIES ON DIFFERENT PILLARS. ONE OF THEM IS THE PLANES THEMSELVES. THAT IS WHAT WE ARE DOING.
FOR PLANES, COMPETITIVENESS MEANS FUEL EFFICIENCY. FUEL EFFICIENCY MEANS SYSTEM TECHNOLOGY. AIRLINES WILL CONTINUE TO BUY PREFERABLY PLANES THAT BURN LESS FUEL, WHATEVER THE FUEL. IT IS IMPORTANT TO HAVE UNITY. WE NEED A GLOBAL LEVEL PLAYING FIELD.
WE NEED TO UNDERSTAND BETTER WHAT IT MEANS FOR THE U.S. AND TO WHAT EXTENT OTHERS WILL KEEP MOVING AT THE SAME PACE. WE SEE DIFFERENT DYNAMICS IN DIFFERENT PLACES IN THE WORLD. EUROPE HAS GONE ALONE PUTTING MANDATES. IT WAS ALREADY DIFFERENT WITH THE PREVIOUS ADMINISTRATION IN THE U.S. CHINA IS GOING ALSO ANOTHER WAY. THAT IS ONE OF THE PROBLEMS. WE NEED THIS TO BE UNIFIED. GUY:
YOU JUST CAME BACK FROM CHINA. ARE THEY GOING TO LEAPFROG THE WAY WE HAVE SEEN THEM DO IN ELECTRIC CARS? >> THEY ARE SERIOUS ON THE TRANSITION. THEY ARE SERIOUS ON DE-CARBONIZED ENERGY. THE USE OF SOLAR, WIND, NUCLEAR. I THINK ONE HALF TO TWO THIRDS OF DE-CARBONIZED ENERGY LAST YEAR WAS COMING FROM CHINA. THEY ARE MOVING AT THE RIGHT PACE. YES, THERE IS A LIKELIHOOD THEY
WOULD GO FASTER THAN OTHERS ON DE-CARBONIZED TECHNOLOGIES WITH THE RISK WE WOULD SEE IN AVIATION FUELS WHAT WE SEE TODAY IN ELECTRIC CARS. AS A PARTNER, WE CAN RELY ON THEM FOR THE DEVELOPMENTAL STUFF. GUY: IN EUROPE, IT SEEMS SECURITY IS MORE IMPORTANT TO EUROPE THAN SUSTAINABILITY. DO YOU SEE IT THAT WAY? IS IT HOW IT IS DEVELOPING? >> I DO NOT THINK IT IS MORE IMPORTANT.
I THINK IT IS A PRECONDITION. YOU NEED SECURITY TRAP PROSPERITY. YOU NEED PROSPERITY TO CLIMATE YOUR TRANSITION. SECURITY COMES FIRST. I DO NOT THINK THERE IS COMPETITION BETWEEN DIFFERENT INVESTMENTS AT THE MOMENT, AT LEAST FOR US. WE HAVE DIFFERENT BUSINESSES.
THERE IS MORE THAT WILL GO TO SPACE AND DEFENSE THAN IN THE PAST. WE THINK IT IS IMPORTANT FOR THE SECURITY OF EUROPE. GUY: YOU TALK ABOUT SPACE, ONE OF THE KEY PIECES EUROPE HAS RELIED ON IS STARLINK USED IN UKRAINE. HOW QUICKLY CAN EUROPE REPLICATE SOMETHING? >> THE CONSTELLATION IS LARGE IN THE AIR.
WE HAVE CONSTELLATIONS FLYING ALREADY BUT THEY ARE MUCH SMALLER. WE NEED COUNTRIES TO COME TOGETHER AND WE NEED THE INDUSTRY TO COME TOGETHER TO SUPPLY. EUROPE NEEDS SCALE. WE HAVE SIMILAR TECHNOLOGIES BUT IT NEEDS TO MOVE TO A PROJECT AT SCALE. IT WILL TAKE A BIT OF TIME. WE ARE MOVING AS FAST AS WE CAN. WE ARE IN DISCUSSIONS WITH OUR FRIENDS FROM LEONARDO AND TELL IS TO CREATE A JOINT COMPANY FOR MANUFACTURING.
IT IS A JOINT VENTURE BETWEEN COMPANIES CREATING SCALE IN EUROPE TO BE COMPETITIVE ON A GLOBAL SCALE. GUY: CAN YOU DO THE SAME ON DEFENSE? >> IT WILL BE MORE DIFFICULT BECAUSE OF THE SOVEREIGNTY FOR SECURITY AND DEFENSE AT THE LEVEL OF NATIONS. WE NEED COUNTRIES TO COME TOGETHER WITH COMMON PROJECTS TO CREATE THAT SCALE.
WE ARE TOO FRAGMENTED ON DEFENSE IN EUROPE. NOW THAT IS ACKNOWLEDGED, WE NEED TO FIND SOLUTIONS. GUY: IN TERMS OF HOW YOU DEVELOP AIRBUS FROM HERE, THE PAST FEW YEARS, IT HAS BEEN CIVIL FOCUSED. DO YOU SEE SPACE, DEFENSE BECOMING SIMILAR SCALE ARMS OF AIRBUS? IS THAT GOING TO BE THE FUTURE? IS THE DEFENSE ARM, HIS FACE GOING TO BE SUBSCALE? HOW QUICKLY CAN YOU GET IT TO SCALE? WOULD BE SOMETHING SIMILAR TO WHAT WE SEE ON THE CIVIL SIDE? >> WE ARE AIRBUS IN DEFENSE AND HELICOPTERS.
WE HAVE CREATED TO SCALE AND HELICOPTERS IN THE PAST. WE ARE THE NUMBER ONE HELICOPTER MANUFACTURER IN THE WORLD. THAT IS SOMETHING WE ARE DOING IN OTHER AREAS OF BUSINESS AND COMMERCIAL. WE ARE AIRBUS IN DEFENSE WITH PROJECTS WHERE EUROPEAN COUNTRIES PARTNER TOGETHER TO CREATE A PROJECT THAT IS THE BEST IN THE WORLD AT THE MOMENT. IT IS THE DNA OF US TO BRING COLLABORATION AND PARTNERSHIPS AND CREATE A PROJECT AT THE RIGHT SCALE WITH THE RIGHT SCALE OF INVESTMENTS AND THE RIGHT COMPETITIVENESS. GUY: DO YOU THINK DONALD TRUMP IS BRINGING EUROPE TOGETHER? EUROPE RELIES ON A CRISIS.
IS THIS A BIG ENOUGH CRISIS? >> EUROPE IS MAKING PROGRESS. WE ARE CHALLENGED BY A NUMBER OF THINGS CHANGING IN THE WORLD. EUROPE NEEDS TO TAKE SECURITY AND DEFENSE IN ITS OWN HANDS. IT MAKES SENSE.
THAT IS WHAT EUROPE IS DOING. UNDER A NUMBER OF PRESSURE POINTS. UKRAINE IS ONE OF THEM. EUROPE NEEDS TO TAKE ITS DESTINY IN ITS HANDS. GUY: DONALD TRUMP TALKS ABOUT HOW HIS FAVORITE WORD IS TARIFFS.
WHAT DO YOU EXPECT IN TERMS OF TARIFFS? HOW IS IT IMPACTING AIRBUS? THE AIRCRAFT BEHIND YOU COME FROM FRANCE, THE ENGINES FROM AMERICA. THE AIRCRAFT IS AN AIRCRAFT OF THE WORLD. THAT CREATES VULNERABILITY. HOW ARE YOU THINKING ABOUT TARIFFS? WHAT IS THE IMPACT ALREADY? >> WE HAD TARIFFS ON AIRCRAFT FOUR OR FIVE YEARS AGO BETWEEN THE U.S. AND EUROPE. IT WAS A LOSE-LOSE. WE HAD A CEASE FIRE IN 2021.
IT WAS INTERESTING SHOWING BOTH SIDES OF THE ATLANTIC IT IS ONLY LOSE-LOSE WITH TARIFFS. WE DO NOT HAVE TARIFFS ON AIRCRAFT AND AVIATION AT THE MOMENT. I THINK THAT IS A GOOD SIGN. THERE IS NOTHING MORE TO PREPARE THAN TO COMMUNICATE, TO EXCHANGE, TO EXPLAIN.
WE HAVE A LOT OF CROSS STRUCTURE IN MANUFACTURING. WE ARE PARTNERING WITH THE U.S.. WE ARE SELLING TO THE U.S.. U.S. MANUFACTURERS ARE DOING THE SAME WITH EUROPE. IT WOULD BE A BURDEN FOR BOTH SIDES.
IT MIGHT BE TOUGHER FOR THE U.S. MANUFACTURERS. GUY: HAVE YOU BEEN PUTTING EXTRA RESOURCES IN? HAVE YOU BEEN STOCKPILING? IAANY PREPARATIONS TO GET READY FOR SOMETHING THAT COULD BECOMING? >> WE KEEP DOING WHAT WE HAVE BEEN DOING SO FAR. WE ARE PROCREATING -- PROCURING FROM AROUND THE WORLD. I THINK WE ARE KEYED TO THE U.S. ECOSYSTEM. WE THINK THAT PLAYS A BIG ROLE IN HOW TARIFFS ARE TARGETED. GUY: YOU SIT ON THE BUSINESS COUNCIL IN AMERICA. YOU SPEAK TO CEO'S THERE.
WHAT MESSAGE DID YOU TAKE TO THEM FROM EUROPE? WHAT IS THE MESSAGE THAT SHOULD BE GOING TO U.S. BUSINESS AND THE ADMINISTRATION? >> THERE IS A LOT OF QUESTIONING ABOUT WHERE ALL OF THIS IS GOING AND WHAT IT WILL MEAN FOR INDUSTRY. WE ARE IN WAIT-AND-SEE MODE FOR TARIFFS, TO SEE WHO WILL BE IMPACTED, HOW TO RESPOND TO THE TARIFFS IF ANY. WE ARE NOT DIRECTLY TARGETED WITH TARIFFS AT THE MOMENT.
INDEED, THERE IS A LOT OF QUESTIONING ON WHAT IS CHANGING AND HOW TO ADAPT. WE ARE IN A WORLD THAT IS FAST CHANGING. WE ARE ADAPTING TO THOSE CHANGES. GUY: THANK YOU FOR ADVISING US AND
INVITING US TO THE AIRBUS HEADQUARTERS IN FRANCE. THAT WRAPS UP THAT CONVERSATION. "BLOOMBERG TECHNOLOGY" CONTINUES ON THE OTHERS OF THIS BREAK. WE ARE GOING TO HEAR FROM MARK GURMAN WITH AN UPDATE ON APPLE.
THIS IS BLOOMBERG. ♪ MATT: APPLE IS EXPLORING THE IDEA OF ADDING CAMERAS AND VISUAL INTELLIGENCE FEATURES TO THE SMARTWATCH, THRUSTING THE COMPANY INTO THE AI WEARABLES MARKET. MARK GURMAN JOINS US WITH MORE. WHAT DO YOU KNOW ABOUT THESE DEVELOPMENTS? MARK: THANKS FOR HAVING ME. OVER THE PAST YEAR AND CHANGE, COMPANIES HAVE BEEN TRYING TO MELD AI WITH HARDWARE. WE HAVE SEEN FAILED ATTEMPTS. WE HAVE SEEN BIGGER SPLASHES
LIKE THE RAY-BAN SMART GLASSES FROM META. THESE HAVE CAMERAS AND MICROPHONES. TO REALLY TAKE ADVANTAGE OF THE AI, YOU NEED TO HAVE A SOLID UNDERSTANDING OF YOUR SURROUNDING ENVIRONMENT. APPLE WANTS TO BRING CAMERAS TO ITS WEARABLES. THEY ARE WORKING ON NEW VERSIONS OF AIRPODS AND BOTH APPLE WATCH MODELS THAT ADD CAMERAS TO HAVE A BETTER IDEA OF THE OUTSIDE WORLD. ONE THINK THEY ARE LOOKING AT IS ADDING CAMERAS TO THE APPLE WATCH.
THAT WOULD ENTAIL POINTING YOUR APPLE WATCH AT SOMETHING AND THAT WILL ENACT THE VISUAL INTELLIGENCE FEATURE THEY HAVE ADDED. YOU CAN SCAN A POSTER, A PLANT, ANYTHING, AND IT WILL TELL YOU WHAT IT IS USING CHATGPT OR GOOGLE SEARCH. THE IDEA IS FOR APPLE TO CONVERT ITS MODELS TO HAVE THAT CAPABILITY TO DO THAT INSTEAD OF OPENAI AND GOOGLE. THE BIGGER PICTURE IS ADDING CAMERAS TO AS MANY DEVICES AS POSSIBLE TO TAP INTO THE OFFICIAL INTELLIGENCE OFFERINGS.
MATT: I USE CHATGPT A LOT. I TALK TO IT, IT TALKS TO ME. IT IS HELPFUL ON CONVERSATIONS. WITH SIRI, IT DOES NOT WORK AS WELL. WHEN ARE THEY GOING TO MAKE REAL ADVANCES WITH THE AI ASSISTANT? MARK: IT IS GOING TO BE A WHILE. MY BELIEVE IS THEY ARE NOT GOING TO HAVE ANYTHING SIGNIFICANTLY NEW OR POWERFUL UNTIL 2027. WE ARE A FEW YEARS AWAY. THEY ARE SHAKING UP THE MANAGEMENT OF SIRI.
THEY HAVE REMOVED SIRI FROM THE OVERSIGHT OF THE HEAD OF AI WHICH TELLS YOU PRETTY MUCH EVERYTHING YOU NEED TO KNOW. THEY HAVE MOVED THAT INTO THE SOFTWARE ENGINEERING ORGANIZATION. THEY PUT THE GUY THAT CREATED THE VISION PRO IN CHARGE OF IT. MATT: ALWAYS GREAT TO TALK WITH YOU. MARK GURMAN TALKING THROUGH ALL THINGS APPLE. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY."
CHECK OUT OUR PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS ONLINE AT APPLE, SPOTIFY, AND IHEART. THIS IS BLOOMBERG.
2025-03-27 08:15
