Tesla's Job Cuts and Apple's iPhone Slump | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, FROM SILICON VALLEY TO BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE IN NEW YORK. ED: AND I'M ED LUDLOW IN SAN FRANCISCO. CAROLINE:
COMING UP, IRAN LAUNCHED MISSILES AND DRONES INTO ISRAEL OVER THE WEEKEND AND THE U.S. AND EUROPE RAMP-UP CALLS FOR ISRAELI RESTRAINT. ED: TESLA SHARES SLUMPING AS THEY PLAN TO CUT 10% OF THEIR GLOBAL WORK FORCE. WE HAVE THE DETAILS. CAROLINE: APPLE FACING INCREASED COMPETITION IN CHINA IN THEIR WORST SLUMP SINCE COVID. FIRST, WE TURN OUR ATTENTION TO
A COMPLEX GEOPOLITICAL AND MACROECONOMIC PICTURE BEING PAINTED TODAY. THE HEAD IS NASDAQ BACK IN THE RED. WE HAD BEEN PUSHING HIGHER ON STOCKS, BUT THE BOND MARKET IS NOW IN FULL EFFECT WITH A STRONGER, MORE RESILIENT MACROECONOMIC CHIRP FROM THE UNITED STATES WITH RETAIL SALES FASTER THAN ANTICIPATED. ON THE FLIPSIDE, GEOPOLITICS AND THE CONCERN OVER AN UNPRECEDENTED ATTACK IN ISRAEL AND WHAT IT MEANS IN TERMS OF DIALING UP OR COOLING OF GEOPOLITICAL ANXIETIES. TRACKING THE BLUE -- BLOOMBERG COMMODITY INDEX DOWN, REMEMBER THESE SANCTIONS ON RUSSIAN MOVEMENT OF METALS INTO THE LME? THAT'S BEEN MOVING AROUND ALUMINUM AND OTHER KEY METALS. COMPLEX GOING ON IN THE
COMMODITY SPACE AS WELL, BUT LET'S MOVE ON AS WE TRY TO ANTICIPATE WHICH WAY RISK ASSETS ARE GOING. ONE OF THEM IN FULL EFFECT, THE ONLY RISK ASSET THAT WAS ACTUALLY ABLE TO BE TRADED AT THE TIME ON THE INITIAL REPORTS AS MANY HAD ANTICIPATED FROM IRAN INTO ISRAEL, WE SAW THE VOLATILITY IN DISPLAY WHEN IT CAME TO BITCOIN ON SATURDAY, PLUMMETING NOW, OFF BY 4% OVER THE COURSE OF THREE DAYS IN TRADING. WHAT ARE YOU WATCHING? ED: TESLA. IT'S A BIG ONE. I BROKE THE STORY THIS MORNING THAT THE LEADER A POWERTRAIN ENERGY AT TESLA, ONE OF ONLY FOUR NAMED EXECUTIVE OFFICERS, HAS RESIGNED AND LEFT THE COMPANY. THE STOCK IS DOWN 3.3%. WE ALSO CONFIRMED ELON MUSK HAS
TOLD STAFF THAT 10% OF THE WORKFORCE WILL BE CUT IN PURSUIT OF COST-REDUCTION PRODUCTIVITY AND WILL BE GIVEN DUPLICATE ROLES. -- RECALLING DUPLICATE ROLES. APPLE, DATA SHOWED SHIPMENTS OF ABOUT 50 MILLION IPHONES IN THE FIRST QUARTER, DOWN 10% YEAR ON YEAR. THAT IS THIRD-PARTY DATA. IT'S NOT JUST AN APPLE STORY, WITH THE STOCK DOWN .8%. IT'S THE STORY OF THE CHINESE DOMESTIC SMARTPHONE MAKERS HAVING SUCCESS GROWING MARKET SHARE IN A KEY MARKET.
WE WILL SPEAK TO MARK, IT'S COMPLICATED, BUT APPLE IS LOWER. WHETHER THAT IS A CAUSE OR NOT, WHO KNOWS. A LOT GOING ON AROUND THE WORLD. CAROLINE: THE IRANIAN ATTACK ON ISRAEL IS WHAT A LOT OF PEOPLE ARE TALKING ABOUT. THEY INTERCEPTED THE OVERWHELMING MAJORITY OF 300 MISSILES AND DRONES FIRED BY IRAN. JOINING US NOW, ETHAN. THANK YOU FOR YOUR TIME. BROADLY, HOW IS IT YOUNG FELT AND DIGESTED IN ISRAEL RIGHT NOW? ETHAN: THAT'S A GOOD QUESTION. THE OVERALL QUICK -- SENSE IS
OF RELIEF, WITH 100 AND 20 BALLISTIC MISSILES COMING WITHIN 10 MINUTES FROM AROUND THE VAST MAJORITY, THE OVERWHELMING MAJORITY BEING STOPPED BEFORE THEY GOT HERE. THERE WERE ABOUT HALF A DOZEN THAT GOT THROUGH TO A MILITARY BASE IN ISRAEL. THEY DIDN'T DO MUCH DAMAGE, BUT THEY DID HIT. SO, THERE WAS A KIND OF MIXED FEELING OF -- WELL, NOBODY WAS KILLED, BUT THERE IS A SEVEN-YEAR-OLD GIRL FIGHTING FOR HER LIFE, SHRAPNEL HAVING HIT HER. THE GENERAL SENSE IS THAT THIS COULD HAVE BEEN MUCH, MUCH WORSE, SO ISRAEL CAN TAKE IT'S TIME TO DECIDE WHAT TO DO NEXT. BUT THERE IS A RUBICON THAT HAS
BEEN CROSSED AND FOR THE FIRST TIME IN FOUR DECADES ISRAEL HAS TAKEN DIRECT HITS FROM MISSILES OF THIS KIND AND FOR THE FIRST TIME EVER IN WHAT HAS BEEN A SHALLOW WAR BETWEEN -- SHADOW WAR BETWEEN ISRAEL AND THE WAR -- IRAN, IT'S EMERGED FROM THE SHADOWS. WE ARE IN A NEW ERA AND WE ARE NOT SURE WHAT IT MEANS. ED: LATER ON WE WILL TALK MORE ABOUT THE COALITION RESPONSE. ISRAEL MADE THOSE INTERSECTIONS IN CONJUNCTION WITH THE UNITED STATES AND UNITED KINGDOM. I WOULD ALSO LIKE TO LEARN MORE ABOUT THE OPERATIONAL RESPONSE ON THE GROUND IN ISRAEL.
WHAT IS HAPPENING IN THE STREETS, WHAT THE GOVERNMENT IS TELLING CITIZENS ABOUT WHERE THEY STAND. ETHAN: AT THE MOMENT, THERE IS A SENSE OF CALM. THE GOVERNMENT ISSUED A STATEMENT THAT THEY WERE GOING TO REOPEN SCHOOLS AND THAT THE DAY CAMPS THEY HAD CLOSED ON SATURDAY NIGHT IN ANTICIPATION OF THE ATTACK. SO, THERE IS THEN EVERYTHING IS BACK TO NORMAL FEELING, IT'S FAIR TO SAY.
THE IRANIANS REOPENED THEIR AIRSPACE, BY THE WAY. THERE'S NO SENSE OF A CONTINUATION OF THE WAR IN THE COMING THREE DAYS. ON THE OTHER HAND, THE ISRAELI CABINET THAT LAST NIGHT AND AGAIN TONIGHT IN ORDER TO DISCUSS THE KIND OF RESPONSE THEY NEED TO HAVE.
THOSE ON THE FAR RIGHT ARE URGING VIGOROUS RESPONSE, A CRUSHING ATTACK, AS THEY PUT IT. IT'S NOT CLEAR IF THEY WILL HAVE THEIR WAY. IT DOESN'T SEEM SO. IT SEEMS THAT THE EMBRACE THAT THE UNITED STATES, THE UNITED KINGDOM, AND FRANCE, IT'S BEEN A WARM BATH BECAUSE OF THE HOSTILITY OVER THE WAR IN GAZA. AT THE SAME TIME, THE ISRAELIS HAVE TWO AUDIENCES THAT WE'RE WORRIED ABOUT. THESE THAT WE JUST TALKED ABOUT AND THEIR ENEMIES. THEY FEAR THAT ANY LACK OF
REACTION WILL BE PERCEIVED AS WEAKNESS, SO THERE IS A SENSE THAT THEY MUST REACT, THE QUESTION IS WHEN AND HOW. ED: ETHAN, ON THE GROUND THERE IN TEL AVIV, REALLY GRATEFUL FOR YOUR TIME. WE HAVE A AUDIENCE HERE IN EUROPE AND I WILL POINT OUT THAT ONE OF THE AIRLINES THERE, EASYJET, HAS CANCELED FLIGHTS TO ISRAEL THROUGH APRIL 21. THERE'S A BUSINESS IMPACT THERE AS WELL. LET'S GO FROM ISRAEL TO WASHINGTON, D.C. AND BRING IN NICK WARDEN. I WAS TALKING TO ETHAN ABOUT
THE COALITION RESPONSE THAT THE UNITED STATES WAS INVOLVED, THE UNITED KINGDOM WAS INVOLVED, IN PART BECAUSE IRAN HAD GIVEN A HEADS UP, ALMOST, ON THEIR ACTIONS. MY UNDERSTANDING IS BIDEN HAS BEEN IN TOUCH WITH THE ISRAELI GOVERNMENT QUITE FREQUENTLY. WHAT DO WE KNOW FROM THE U.S. SIDE OF THE STAGE? NICK: WE ARE HEARING THAT THEY WANT ISRAEL TO PUT THE BRAKES ON ANY KIND OF RESPONSE. WE HAVEN'T TOLD THAT THE VIEW FROM THE WHITE HOUSE IS -- LISTEN, ISRAEL, TAKE THE WIN. YOUR AIR DEFENSES DID AN EXTRAORDINARY JOB REFLECTING AND REBUFFING 99% OF THE INCOMING DRONES AND MISSILES AND THERE IS NO NEED FOR AN IMMEDIATE RESPONSE. AS ETHAN JUST SAID, THE
PRESSURE ON THE PRIME MINISTER BENJAMIN NETANYAHU IS COMING FROM THE OTHER DIRECTION AS WELL. LOOKING AHEAD FOR THE NEXT FEW DAYS, WHAT WE ARE REALLY GOING TO SEE HERE IS A GOOD REFLECTION ON THE LIMITS OF U.S. LEVERAGE OVER PRIME MINISTER NETANYAHU. PRESIDENT BIDEN COULD NOT HAVE BEEN MORE CLEAR ABOUT WHAT HE WANTS TO SEE NEXT, DE-ESCALATION. THE U.S. DOES NOT WANT TO BE PULLED DEEPER INTO THE CONFLICT. THEY DON'T WANT THIS TO TURN INTO AN EVEN BIGGER CONFLAGRATION. THEY WANT PRIME MINISTER
BENJAMIN NETANYAHU TO HOLD FIRE. WHETHER HE LISTENS TO THE ADVICE IS ANOTHER THING ENTIRELY. CAROLINE: FOR NOW, RIGHT OR WRONG, THE MARKET, WHAT WE FOCUS ON HERE AT BLOOMBERG, HAS BEEN DEEMING THIS TO BE SOMETHING CONTAINABLE AT THE MOMENT. WHERE DO WE HAVE TO LINE UP OUR SITES NOW? THINKING ABOUT THE NEXT STATEMENT WE GET FROM BIDEN? A PRESS CONFERENCE IS SOON AS 12:00? NICK: THAT'S RIGHT. WE WILL REALLY BE LOOKING AT WHAT THE TONE IS FROM THE PRESIDENT AND OTHER OFFICIALS IN THE ADMINISTRATION.
ARE THEY PROJECTING UNITY? IS THERE MORE SENSE OF THE FRACTURES THAT HAD EMERGED IN THE RECENT WEEKS FROM ISRAEL? IS THERE A SENSE THAT THESE GOVERNMENTS ARE DIVERGING IN THEIR PERSPECTIVES ON WHAT THE OUTCOME WILL BE HERE? THE ATTACK FROM IRAN COULD HAVE BEEN SO MUCH WORSE. YOU ARE SEEING THE MARKET UP IN SOME WAYS IN A SENSE OF RELIEF THAT IT WAS REPELLED, NO DEATHS AND LIMITED DESTRUCTION. WHAT HAPPENS IF IRAN DECIDES TO RESPOND YET AGAIN IN RESPONSE TO A POTENTIAL ISRAELI RETALIATION? THERE IS A LOT OF FEAR THAT THERE COULD BE AN ESCALATORY SPIRAL GETTING TO A SITUATION NEITHER SIDE CAN CONTROL. CAROLINE: NICK, THANK YOU. MEANWHILE, COMING UP, WE TURN OUR ATTENTION BACK TO A FOCUS ON TECHNOLOGY. TESLA PLANS TO CUT 10% OF THE GLOBAL WORKFORCE.
SENIOR EXECUTIVES CUT ACROSS THE FIRM. THIS IS "BLOOMBERG MARKETS." ED: LET'S TALK ABOUT TESLA. CUTTING 10% OF THEIR WORKFORCE. ELON MUSK PREPARING THE COMPANY FOR THE NEXT PHASE OF GROWTH. WE ALSO REPORTED THIS MORNING THAT TWO KEY EXECUTIVES HAVE LEFT TESLA IN THE LAST 24 HOURS. DREW BACK REALLY KNOW, WHO HAS
BEEN THERE FOR 18 YEARS, AND HAS LED EVERYTHING HAVING TO DO WITH POWERTRAIN ENERGY STORAGE, RESIGNING, I'M TOLD BY A SOURCE. ROHAN PATEL IS BASICALLY THE PUBLIC POLICY CHIEF IN MANY WAYS , THE DEFECTIVE VOICE PIECE OF TESLA ON SOCIAL MEDIA. ALSO LEAVING THE COMPANY. LET'S RING AND CRAIG TRUDELL. CRAIG, IT WAS A BIT OF A LONG NIGHT OR AN EARLY MORNING, DEPENDING ON WHERE YOU WERE AROUND THE WORLD, BUT LET'S START DREW BAGLINO, ONE OF ONLY FOUR NAMED OFFICERS AT TESLA. I THOUGHT THIS WAS A SURPRISE. AND I'M BEING TOLD HE RESIGNED, NOT LAID OFF AS PART OF THE 10% CUT. WHAT DO YOU KNOW? CRAIG:
LESS THAN YOU DO, ED, BUT I HAVE TO SPECULATE ABOUT THE EXTENT TO WHICH THIS MAY BE ABOUT A DIFFERENCE OF OPINION ON THE DIRECTION OF THE COMPANY. THIS NEWS COMES SHORTLY AFTER NEWS THAT THE COMPANY IS MAYBE PUTTING ASIDE ITS WORK ON A CHEAPER VEHICLE AND FOCUSING EFFORTS ON A ROBOTAXI. ELON MUSK AT FIRST CALL THAT REPORT BY REUTERS FALSE AND THEN SEEMED LEND CREDENCE TO IT I SCHEDULING THE INTRODUCTION OF ROBOTAXI MONTHS FROM NOW, WHICH IS SORT OF SUGGESTS THAT, YOU KNOW, HE'S FOCUSED ON THAT. THAT RAISES QUESTIONS ABOUT WHETHER, WHETHER DREW BAGLINO THOUGHT THAT THE RIGHT.
WHETHER PATEL THINKS THAT'S THE RIGHT NEWS. HE'S GOING TO BE THE PERSON, WOULD HAVE BEEN THE PERSON IN WASHINGTON WHO WOULD HAVE HAD TO JUSTIFY THAT TO REGULATORS AND WHETHER OR NOT TESLA IS REALLY READY TO PUT THAT FORWARD IS A QUESTION AFTER YEARS AND YEARS OF THE COMPANY TALKING ABOUT HAVING ROBOTAXIS, OR AT LEAST ELON MUSK TALKING ABOUT IT. ED: YES. CAROLINE: ALL OF THIS IS SORT OF TRYING TO BE A LEVEL OF PRIORITIZATION OR ANXIETY AMONG INVESTORS AT THE MOMENT. MANY WOULD SAY -- OK, CUTTING DOWN ON EXPENSES, COSTS, SOMETHING NECESSARY IN THE CONTEXT OF EV SALES MORE BROADLY. WHAT COULD BE UNNERVING THE INVESTOR BASE WITH SVP'S LEAVING? IS IT ABOUT THE CONCERN OVER THE HANDING OVER OF POWER, ULTIMATELY? THE FACT THAT ASK CURRENTLY LEADS AND HAS DONE SINCE 2008? CRAIG: YEAH, I THINK IT'S THIS CONCERN OVER NOT KNOWING WHAT THE PLAN IS, RIGHT? IT'S NOT JUST A STORY THAT HAS SURFACED LATELY. WE GO BACK TO THE WALTER
ISAACSON BIOGRAPHY FROM MONTHS AGO AND ONE OF THE MORE COMPELLING IT'S WITHIN THE BOOK WAS THIS IDEA THAT THERE WAS A REAL DIFFERENCE AT THE TOP OF TESLA AS TO WHETHER OR NOT, YOU KNOW, THEY SHOULD DESIGN THIS NEXT GENERATION VEHICLE WITH OR WITHOUT A STEERING WHEEL. WITHIN THE BOOK YOU HAD THIS REALLY COMPELLING SECTION OF EXECUTIVES HAVING TO KIND OF TALK MOSQUE OUT OF THIS IDEA THAT THEY COULD JUST DESIGNED THE CAR WITHOUT A STEERING WHEEL AND COUNT ON THE IDEA THAT THE TECHNOLOGY WAS READY. I THINK THAT IS SOMETHING HAVE SEEN FOR SOME TIME, THIS IDEA THAT ELON MUSK HAS SORT OF BEEN OUT ON A LIMB IN TERMS OF HOW QUICKLY THIS COMPANY WILL BE ABLE TO PUT SELF DRIVING CARS ON THE ROAD. WHAT OTHER EXECUTIVES HAVE SAID, PUTTING ENGINEERS WHO HAVE HAD TO TESTIFY IN LAWSUIT RELATED TO PEOPLE LOSING THEIR LIVES BECAUSE THEY PUT TOO MUCH TRUST INTO THE TESLA DRIVER ASSISTANCE SYSTEM. THIS IS SOMETHING THAT IS
REALLY TRICKY IF YOU ARE AN EXECUTIVE THAT HAS TO SQUARE THAT CIRCLE. CAROLINE: -- ED: QUICKLY RECAPPING THE BASICS, 10% OF THE WORK OR'S CUT. WHERE IS THAT? CRAIG: THEY ENDED LAST YEAR WITH OVER 140 THOUSAND PEOPLE. ASSUMING IT'S COMPANYWIDE, WE KNOW IT IS GLOBAL ACCORDING TO THE EMAIL TO STAFF, WE KNOW THAT'S MORE THAN 14,000 PEOPLE. WE ARE CAREFUL ON THAT, MUSK HAS BEEN A BIT ALL OVER THE PLACE WITH HIS MESSAGING IN THE PAST WHEN HE HAS MADE JOB CUTS. CAROLINE: CRAIG TRUDELL, THANK YOU SO MUCH, A PHENOMENAL AMOUNT OF REPORTING COMING FROM BOTH OF YOU GENTLEMEN. MEANWHILE, COMING UP, APPLE
IPHONE SHIPMENTS FALLING IN THE MARCH QUARTER. MAYBE THE WORST SALES SLUMP SINCE COVID. THE DETAILS ARE NEXT, ANOTHER KEY POINTS DRAG ON THESE BENCHMARKS. AND ON THE MICRO LEVEL? ED: A LITTLE BIT OF M&A MONDAY. SALESFORCE IS, ACCORDING TO
SOURCES, LOOKING FOR A DEAL ON DATA CAPABILITIES. THE STOCK IS DOWN MORE THAN 5%. THE STREET KIND OF LIKES IT, BUT IT IS A DEAL LIGHT ON INFORMATION AROUND BLOOMBERG, WITH IT MAYBE BEING REACHED THIS MONTH. THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: APPLE IS FACING ITS WORST IPHONE SLUMPS IN SCOPE -- COVID AS COMPETITION IN THE CHINESE MARKET HEATS UP. THIRD-QUARTER SHIPMENTS ARE SLIDING WORSE THAN EXPECTED, ALMOST 10% SINCE THEY DELIVERED 51 MILLION PHONE 51 -- PHONES, FULLY SHY OF ESTIMATES. MARK JOINS US NOW WITH THE CONTEXT ON WHO IS PROVIDING THE DATA AND WHAT IT MEANS ABOUT APPLE VERSUS OTHER COMPETITORS.
MARK: THESE SMARTPHONE SHIPMENTS ARE THERE ANALYSIS BASED INSIGHTS AS TO HOW MANY UNITS WERE SHIPPED. WE DON'T KNOW FOR SURE, WE WILL GET A BETTER IDEA ON MAY 2, WHEN THEY ANNOUNCED AN EARNINGS REPORT AND GET A BETTER IDEA FROM OTHER PHONE MAKERS. IDC IS USUALLY ON TARGET IN TERMS OF A GENERAL RANGE OR IN TERMS OF THE OVERALL THEME. THE OVERALL THEME THIS TIME AROUND IS A NEARLY 10% SHIPMENT DECLINE ON AN ANNUAL BASIS FOR APPLE. IT'S THE MOST SIGNIFICANT DECLINE OF ANY OF THE PHONE MAKERS THAT THEY TRACK, INDICATING THAT SAMSUNG IS BACK IN THE NUMBER ONE GLOBAL SMARTPHONE SALES POSITION, INDICATING SALES THAT FROM SOME CHINESE BRANDS, ONE CALLED TRANSITION IN PARTICULAR, WITH AN 80% YEAR-OVER-YEAR SALES INCREASE, ARE REALLY TAKING STEAM FROM APPLE AT THIS POINT. SO IF I WERE AN APPLE SHAREHOLDER, IT WOULD BE A LITTLE BIT CONCERNING TO SEE THIS SLUMP GOING ON RIGHT NOW FOR THE COMPANY AND IT SEEMS THAT MOST OF IT IS CHINA-BASED.
WE WILL HAVE TO WAIT UNTIL MAY 2 TO KNOW FOR SURE, HOWEVER. LET'S KEEP THE CONVERSATION -- ED: LET'S BRING THE CONVERSATION -- KEEP THE CONVERSATION GOING WITH AN ANALYST FROM CITI INDEX. MARK SUMMED IT UP WELL, PUT EMPHASIS ON APPLE SPECIFIC DATA FOR EMPHASIS ON MARKET SHARE DATA COMING FROM CHINESE HANDSET ANCHORS AND HOW THEY HAD GAMES IN SALES. WHERE DOES YOUR MIND GO TO
FIRST? FIONA: I THINK IT'S A GOOD IDEA TO LOOK AT THIS DATA TOGETHER. IF APPLE IS FALLING AND GLOBAL SMART PHONE SHIPMENTS ELSEWHERE INCREASING, THAT MAKES IT A MORE DRAMATICALLY DIFFICULT POSITION IN PICTURE FOR APPLE. REDEFINING THE EXTENT OF THE PROBLEMS THAT APPLE IS FACING AROUND THE IPHONE. OBVIOUSLY, CHINA IS A VERY BIG
STORY HERE. THERE IS A LOT OF COMPETITION THAT APPLE IS FACING IN CHINA, BUT THERE IS ANOTHER SIDE TO THIS AS WELL. I FEEL THAT APPLE IS BEHIND AS FAR AS INNOVATION IS CONCERNED, AS FAR AS AI IS CONCERNED, THAT'S ALL PLAYING OUT IN THE SHARE PRICE, WHICH HAS HAD A TOUGH START IN 2024. CAROLINE: ALONG WITH TESLA, THESE NAMES IN THE SO-CALLED MAGNIFICENT SEVEN HAVE BEEN ANYTHING BUT MAGNIFICENT IN THE LAST MONTH OR SO. CAN APPLE WIN BACK YOURS AND OTHER INVESTORS HEARTS AND MINDS IF THEY ARE ABLE TO SHOW THAT THEY HAVE AI IN THE PROCESSOR AND THAT THEY CAN HAVE IT -- SOMETIMES THEY ARE KNOWN TO BE SLOWER BUT THEY GET IT RIGHT. NICK:
YEAH -- FIONA: YEAH, THAT'S RIGHT. A LITTLE BIT SLOWER TO THE AI PARTY NOW, AND THAT HAS BEEN -- THEY HAVE BEEN PUNISHED BY INVESTORS FOR BEING A PART OF THAT FALLOFF. I THINK THERE IS A NATURAL FOR THIS TO TURN AROUND. I DON'T THINK IT IS THE END OF THE LINE AT ALL FOR APPLE. WE COULD SEE A GOOD TURNAROUND AS LONG AS THEY GET THE AI PRODUCT REALLY SPOT ON.
ALSO, THE GEOGRAPHICAL DIVERSIFICATION INTO INDIA IS AN AREA THAT COULD AGAIN BE VERY INTERESTING FOR APPLE AS THEY MOVE AWAY FROM CHINA, BUT AT THE END OF THE DAY, CHINA IS A MASSIVE MARKET THAT IS VERY IMPORTANT. IT'S GOING TO BE VERY INTERESTING TO SEE IF APPLE CAN TURN THIS AROUND QUICKLY WITHOUT ANY REAL SUPPORT FROM CHINA. ED: LAST NIGHT WE REGROUPED WITH THE TEAM AND ASKED WHAT THE STORY WAS GOING TO BE MONDAY. APPLE, WE HAVE THE GEOPOLITICS
OF THE MIDDLE EAST, AND THEN TESLA. I'M TRYING TO FIND A COMMONALITY BETWEEN THEM ALL. I THINK THAT THE COMMONALITY IS -- SHOULD WE BE TALKING MORE ABOUT THE HEALTH OF THE GLOBAL ECONOMY RIGHT NOW FOR CONSUMER FACING TECHNOLOGY? NICK: YES, -- FIONA: YES, EXACTLY. THAT'S A REALLY IMPORTANT POINT. THE MACRO BACKDROP FOR THESE STOCKS IS NOT IDEAL RIGHT NOW. LOOKING AT WHERE WE ARE AS FAR AS THE MACRO PICTURE IS CONCERNED, IT'S NOT SMOOTH SAILING AT ALL FOR THE CONSUMER. THE PROSPECT OF THE FEDERAL RESERVE KEEPING INTEREST RATES HIGHER FOR LONGER AFTER THOSE HIGHER THAN POSSIBLE RETAIL SALES FIGURES LAST WEEK THAT ARE HOLDING UP BUT WHEN YOU'VE GOT FINANCING COSTS SO HIGH IN THE U.S., IT OBVIOUSLY IMPACT
THOSE PURCHASING CARS, THEIR ABILITY TO GET FINANCING, OR EVEN A DESIRE TO GET FINANCING. BUT WHEN YOU'VE GOT BIG, EXPENSIVE ITEMS LIKE THE LATEST IPHONE, THOSE WILL BE ITEMS THAT ARE NOT THIS IS SARAH AT THE TOP OF THE LIST, SO I DO THINK THE MACRO BACKDROP HAS SOMETHING TO PLAY AS WELL. CAROLINE: IF SOMEONE CALLS NOW, DO YOU STAY -- DO YOU SAY TAKE OFF THE TABLE OR STAY IN EQUITY? FIONA: THAT'S A GOOD QUESTION. THERE IS THE POTENTIAL FOR THINGS TO GO HIGHER IF WE START TO SEE THAT INFLATION STARTS TO COOL AGAIN. IF WE START TO SEE GEOPOLITICAL TENSIONS START TO CALM DOWN AGAIN, THERE IS POTENTIAL THERE, BUT WE HAVE GOT THE EARNINGS SEASON THAT WE ARE JUST RAMPING UP AND THAT WILL BE A DISTRACTION THE MARKET TO BE ABLE TO HAVE A LOOK AT WHAT THEY WANT TO SEE WHETHER LOFTY VALUATIONS ARE SUPPORTED BY THE FUNDAMENTALS. CAROLINE: GOLDMAN SACHS, FOR EXAMPLE.
FIONA, THANK YOU FOR THE CONTEXT THERE. COMING UP, WE'LL JOINED BY FABIAN ASTEC AND DIVERSIFICATION ON GLOBALIZATION WITH A TAKE ON ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." ED LUDLOW IN SAN FRANCISCO. CAROLINE: CAROLINE HYDE NEW YORK. THERE IS A COMPLICATED CONTEXT
IN THE MARKETS, WHETHER A RESILIENCY PICTURE, RETAIL SALES SHOWING STRENGTH OF THE CONSUMER, AND THE GEOPOLITICAL SITUATION. WE FIND OURSELVES TRYING TO UNDERSTAND -- AN UNPRECEDENTED ATTACK COMING FROM IRAN OVER THE WEEKEND. MASTEC PUSHING BACK INTO THE GREEN. WE HAD BEEN DOWN MORE BROADLY AS SOME OF THE INSIDE HE WAS THERE, BUT APPLE AND TESLA, KEY POINTS DRAGS, APPLE OFF BY 0.6%. WE ARE WORRIED ABOUT MARKET SHARE, PARTICULARLY AS CON -- COMPETITION PICKS UP IN CHINA. IPHONE SHARES AT ITS WORST SINCE THE COVID DAYS.
TESLA OFF BY 4.8%, EXECUTIVES ARE LEAVING AND MORE THAN 10% OF THE WORKFORCE LOOKED TO BE REMOVED AS THEY TRY AND FOCUS ON A MARKET THAT HAS BEEN UNDER PRESSURE OF LATE. WE WANT TO MOVE TO WHAT HAPPENED WHEN IT COMES TO RISK ASSETS OVER THE WEEKEND. THIS IS A GEOPOLITICAL STORY WE
NEED TO SHINE A LIGHT ON. BITCOIN SOLD A HARD SATURDAY AFTERNOON. IT IS ONE OF THE ONLY RISK ASSETS YOU WERE ABLE TO TRADE WHEN YOU FIRST LEARNED IRAN LIVED UP TO WHAT IT HAD BEEN TELLING CERTAIN MEMBERS OF LEADERS ACROSS THE WORLD, THAT THEY WOULD BE LOOKING TO ATTACK ISRAEL. WE SOUGHT HIT SOME 61 THOUSAND DOLLARS AT ONE POINT. WE ARE OFF BY 3.6% OVER THE
LAST THREE TRADING DAYS PER THAT IS WHERE WE TRIED TO DISSECT. THERE IS ONGOING VOLATILITY IN AN ASSET LIKE CRYPTO, AND BITCOIN, BUT WHERE ARE THE APPLICATIONS HERE AND NOW? FABIAN ASTIC IS HERE TO DRILL DOWN ON WHAT HE IS SEEING AS MANAGING DIRECTOR THERE AND GLOBAL HEAD OF IT'LL ECONOMY AT MOODY'S. YOU ARE SOMEONE WHO TALKS ABOUT THE WAY WE CAN ADOPT BLOCKCHAIN TECHNOLOGY, BUT WHEN YOU LOOK AT THE VOLATILITY, AS A RISK ASSET, HOW DOES THAT MAKE YOUR CONVERSATIONS HARDER? FABIAN: IT IS ACTUALLY VERY HARD TO GUESS THE DIRECTION OF TRAVEL FOR BITCOIN OVERALL, BECAUSE WHEN YOU THINK ABOUT IT, THE VALUE OF IT IS NOT DRIVEN BY CLEAR ECONOMIC DRIVERS, UNLIKE OTHER ASSETS. TRYING TO PREDICT THE VALUE OF BITCOIN IS LIKE TRYING TO PREDICT PEOPLE'S THOUGHT. IT CAN BE A LOT OF THINGS. IT COULD BE MACRO ENVIRONMENT,
IT COULD BE DUE TO A POLITICAL ENVIRONMENT. IT COULD BE MANY THINGS. AND IT COULD BE THE HALVING COMING UP, PROBABLY AT THE END OF THIS WEEK, THAT ETHICS BEHAVIORS AND PEOPLE BIDDING UP OR DOWN AND CREATES MORE VOLATILITY, WHICH IS TO BE EXPECTED, AND HAS NOTHING TO DO WITH THE LONG-TERM EVOLUTION OF THE PRICE. BUT AS OF NOW, YOU ARE SEEING VOLATILITY. CAROLINE: MANY ARE SAYING IF IT IS MEANT
TO BE A FIGHT AGAINST INFLATION, YOU HAVE THOUGHT A RISK-AVERSE TIME IN GEOPOLITICS, YOU WILL BE IN BITCOIN RATHER THAN SELLING OFF, BUT PEOPLE SAY IT IS THE RISK ASSET THAT YOU COULD SAY SHOWS ANXIETY OVER THE COURSE OF THE WEEKEND. WHEN YOU SAY YOU SHOULD NOT BE PROTECTING IT ON A DAY-TO-DAY BASIS, HOW DO YOU ENSURE PEOPLE ARE THINKING ABOUT REAL-WORLD ASSETS BECOMING TOKENIZED WHEN PEOPLE ARE STILL FUNDAMENTALLY TRYING TO WORK OUT WHETHER THEY SHOULD EVEN HAVE 1% OR 2% OF THEIR WEALTH IN CRYPTOCURRENCIES? FABIAN: THOSE ARE VERY DIFFERENT THINGS. CRYPTOCURRENCIES, PER SE, ARE ESSENTIALLY VERY SPECULATIVE. PEOPLE ARE BIDDING UP, DOWN, AS I SAID, PROBABLY WITH SOME UPWARD PRESSURE, PLUS IF YOU BELIEVE THE PROXIES A GOOD PATH FOR THE FUTURE. TRADITIONALLY, IT STARTED WITH
BITCOIN AND ETHER AND OTHERS, AND WHAT WE OBSERVED WAS FINANCIAL SITUATIONS AND INSTITUTIONAL INVESTORS WERE VERY CAUTIOUS ABOUT CRYPTOCURRENCIES. SO YOU HAVE A DIFFERENT SEGMENT OF THE DIGITAL FINANCE SYSTEM THAT WAS MORE ABOUT USING THE TECHNOLOGY UNDERLYING BITCOIN AND OTHER ASSETS AND REUSING THAT TECHNOLOGY TO RE-PIPE FINANCIAL MARKETS AND THE GLOBAL ECONOMY TO MAKE IT POTENTIALLY BETTER, FASTER, MORE EFFICIENT. SO CRYPTO WAS MAINLY FOR RETAIL INVESTORS, AND THE REST OF DIGITAL FINANCE MAINLY FOR INSTITUTIONAL INVESTORS. THAT IS WHAT WE HAVE BEEN KEEPING AN EYE ON AND WHAT WILL PROBABLY RESHAPE FINANCIALS MARKETS GOING FORWARD.
RECENTLY, YOU SAW A CONVERGENCE IN THE SENSE THAT INSTITUTIONAL INVESTORS THAT WERE CAUTIOUS -- I WOULD SAY INSTINCTIVELY, THAT'S NOT EVEN BRING UP REGULATION, EVEN THOUGH IT PLAYED A PART IN IT -- THEY SUDDENLY DECIDED IT WAS TIME TO GET INTO THE CRYPTO SPHERE AS WELL, PARTICULARLY WITH THE APPROVAL OF THE COIN ETF'S RECENTLY. NOW YOU ARE SEEING INSTITUTIONAL INVESTORS IN THE TOKENIZATION SPACE, WHICH HAS MANY BENEFITS, AND THE CRYPTOCURRENCY SPACE, WHERE THEY WERE NOT INVOLVED FOR A LONG TIME. ED: I AM FASCINATED BY THE CREDIT RATING PERSPECTIVE ON THIS.
YOU TALK ABOUT THE HALVING AND THEN THE LIMIT ON SUPPLY LONG-TERM, INFINITELY, OF BITCOIN, BUT IN MOMENTS LIKE THE WEEKEND IN GEOPOLITICAL CRISIS OR RISK OFF SENTIMENT, THERE IS CLEAR EVIDENCE IT IS A LIQUID MARKET, SO IF YOU ARE APPROACHING THIS FROM A CREDIT RATING PERSPECTIVE, WHAT IS THE CONCLUSION YOU DRAW? FABIAN: LET ME CLARIFY ONE POINT. CRYPTOCURRENCY, IN AND OF ITSELF, BITCOIN IN PARTICULAR, THERE IS NO TRADED RISK ASSOCIATED WITH IT. THERE IS NO PROMISE ASSOCIATED WITH A CRYPTOCURRENCY, SO YOU CANNOT REALLY RATE WHETHER THE ISSUE OF A CRYPTOCURRENCY WILL MEET ITS PROMISE, AND IF IT DOESN'T, BY HOW MUCH YOU WILL MISS IT. SO THERE IS NO CREDIT RISK FOR CRYPTOCURRENCY. THE REASON WE ARE KEEPING AN EYE ON THEM, BITCOIN IN PARTICULAR, IS YOU KNOW THAT SITUATIONS OUT THERE, GOVERNMENTS, CORPORATIONS, AND OTHERS ARE INVESTED IN CRYPTOCURRENCIES. SO YOU WANT TO KEEP TRACK OF
WHETHER IT WILL IMPACT THEIR CREDIT RISK, BECAUSE THEY HAVE THAT ASSET IN THEIR PORTFOLIO, FOR INSTANCE, AND WE ALSO WANT TO KEEP TRACK OF THINGS LIKE CONTAGION RISK THAT COULD AFFECT ONE WAY OR THE OTHER FROM THE CRYPTO WORLD TO TRADITIONAL FINANCE, OR THE OTHER WAY AROUND. SO IT IS AN ASSET CLASS THAT HAS BEEN VERY RESILIENT. IT HAS NO CREDIT RISK, PER SE, BUT INDIRECTLY, OTHERS COULD SEE THEIR CREDIT RISK PROFILE AFFECTED BY THE MOVEMENTS IN THE BITCOIN MARKET. ED: BUT THERE IS A CONNECTION FOR
SECONDARY MARKETS AND THE UNDERLYING TECHNOLOGY, WHICH IS BLOCKCHAIN. VERY QUICKLY, EXPLAIN YOUR WORK THERE. FABIAN: SO THE FINANCIAL MARKETS ARE LIKELY BEING RESHAPED BY TECHNOLOGIES THAT LOOK LIKE -- TECHNOLOGIES THAT LOOK LIKE BLOCKCHAINS. THE REASON IS THAT THOSE TECHNOLOGIES MAKE PROCESSES A LOT MORE EFFICIENT. I WILL GIVE AN EXAMPLE. THE ASSET TOKENIZATION. IT IS THE PROCESS OF TURNING
REAL-WORLD ASSETS INTO A DIGITAL STAMP ON A BLOCKCHAIN PLATFORM, AND BECAUSE IT HAS BECOME A DIGITAL STAMP, IT IS EASY TO MANAGE, TRACK, TRADE. THOSE ASSETS THAT ARE BEING TOKENIZED COULD BE ANYTHING FROM A BOND OR A STOCK TO REAL ESTATE OR ART. SO YOU TRANSFER ALL THE LEGAL RIGHTS, IN PARTICULAR THE OWNERSHIP RIGHTS THAT COME WITH ASSETS, YOU PUSH THAT INTO THAT DIGITAL BOOK THAT YOU CAN MANAGE AND TREAT EFFICIENTLY. HIM EXCEPT MORE EFFICIENT TO TRADE.
YOU CAN SETTLE SUPER QUICKLY. IT COULD BE IMMEDIATE OR A FRACTION OF A SECOND TO SETTLE PAYMENTS ON THAT BLOCKCHAIN. YOU COULD TRACK AND CONTROL EVERYTHING HAPPENING, SO IT MAKES IT BETTER FROM A RISK AND COMPLIANCE ASPECT OF.
AND ALSO, IT REALLY CREATES EXTRA LIQUIDITY AND NEW OPPORTUNITIES TO FIND FUNDING AND TO INVEST. WE THINK ABOUT A BUILDING, FOR INSTANCE, IT WILL BE HARD TO BUY THAT BUILDING ALONE, BUT IF YOU CAN TOKENIZED AND CUT THE TOKENS INTO SMALL CHUNKS MANY PEOPLE CAN INVEST IN, SUDDENLY IT MAKES THE ASSET EASIER TO ACCESS. ED: FABIAN ASTIC, DEEP ANALYSIS, MANAGING DIRECTOR AND GLOBAL HEAD OF DIGITAL ECONOMY AT MOODY'S. THANK YOU CARE COMING UP, WE
WILL BE JOINED BY GOOGLE CLOUD'S LEE MOORE AND THE COMPANY'S NEW TRAINING INITIATIVES. THIS IS "BLOOMBERG TECHNOLOGY." CIB C PRIVATE WEALTH MANAGEMENT. TUNE IN FOR THAT ONE. THIS IS BLOOMBERG.
A QUICK TALK INTACT. THERE'S A LOT GOING ON. FIRST, THE BIDEN ADMINISTRATION PLANS TOWARD SAMSUNG AS MUCH AS $6.4 BILLION IN GRANTS TO INCREASE CHIP PRODUCTION IN TEXAS THIS IS PART OF U.S. EFFORTS TO BOLSTER DOMESTIC SEMICONDUCTOR MANUFACTURING. THE SOUTH KOREAN COMPANY PLANS TO INVEST MORE THAN $40 BILLION OVERALL. PLUS, ANDERSON HOROWITZ CLOSED OVER $7 BILLION FOR ITS NEWEST SET OF FUNDS.
AND OPENAI NAMED THE FORMER PRESIDENT OF AWS JAPAN, TADAO NAGASAKI, TO SPEARHEAD ITS PUSH. OPENAI IS OPENING AN OFFICE IN TOKYO AS IT RELEASES A CUSTOM GPT MODEL CATERING TO JAPANESE LANGUAGE USERS. CAROLINE: LET'S GET TO MORE BROADLY AND AI CONTACTS, BECAUSE WE ALL THINK ABOUT HOW TO RE-SKILL, AND COMPANIES ARE THINKING ABOUT HOW TO RE-SKILL EMPLOYEES AT THE MOMENT. GOOGLE CLOUD IS THE KING ABOUT ITS OWN ROLE WITHIN THIS. OF THE COMPANY IS ANNOUNCING A NEW TECH TRAINING INITIATIVE IN PART SHOULD WITH VISITATIONS LIKE THE U.S. DEPARTMENT OF THE TREASURY AND RACKSPACE TO REPAIR THE WORKFORCE WITH GENERATIVE AI SKILLS AND MORE. I AM PLEASED TO WELCOME LEE
MOORE, GOOGLE CLOUD CONSULTING VICE PRESIDENT. I AM REALLY INTERESTED IN THIS, BECAUSE YOU ARE WORKING WITH THE PUBLIC SECTOR, THE KING OF THE TREASURY DEPARTMENT AND EDUCATIONAL SITUATIONS AS PRIVATE COMPANIES. YOU ARE ALL THIS FOR FREE? ARE YOU CHARGING? WHERE'S THE REWARD FOR YOU? LEE: FOR US, WE ARE REALLY IN THIS ENTERPRISE AI ERA, AND WE HAVE THE MOST AMAZING CLOUD TECHNOLOGIES, BUT IT IS BEYOND THE TECHNOLOGY. IT IS ALSO ABOUT PEOPLE. IN MY ORGANIZATION, WE ARE
SPONSOR BOWL -- WE ARE RESPONSIBLE FOR SKILLING UP PEOPLE. IF YOU LOOK AT THE JOB DATA, THERE ARE 700,000 OPEN RULES FOR CLOUD ANALYSTS, 500,000 ROLES FOR CYBERSECURITY. THE WORLD ECONOMIC FORUM IS QUOTING ONE MILLION RULES IN AI COMING UP.
IT IS A HUGE OPPORTUNITY FOR INDIVIDUALS, AND WE BELIEVE LAUNCHING THESE PROGRAMS TODAY, BOTH THE TRAINING AND THE ON-RAMPS TO FURTHER EDUCATION AND EMPLOYMENT, IS OUR ROLE IN THE MIDDLE OF THAT ECOSYSTEM. ED: MECHANICALLY, HOW DOES THIS WORK, IN SIMPLE TERMS, IF YOU ARE WORKING WITH THE TREASURY DEPARTMENT? LEE: INDIVIDUALS CAN GO TO GOOGLE CLOUD'S SKILLS BOOST. THEY CAN REGISTER AND TAKE THESE TRAINING PROGRAMS IN ANALYTICS, SECURITY, AND GENERATIVE AI. WHEN THEY PASS, THEY CAN JUMPSTART THE FIRST STEP IN THE RECRUITING PARTNERS WE HAVE SIGNED UP WITH SO FAR, SO THE U.S. DEPARTMENT OF TREASURY, JACK
HENRY, AND RACKSPACE. THEY ENABLE THEM TO GET TO THAT FIRST ROUND OF INTERVIEWS IN A CONSOLIDATED WAY AND MOVE ON THROUGH THAT PROCESS BEYOND THAT. CAROLINE: WHAT IS REALLY INTERESTING -- SOME OF THE STATISTICS AND DATA SHOWING THE C-SUITE HAS A LOT OF ANXIETY ABOUT THIS.
THEY ARE WORRIED ABOUT THE LACK OF TALENT THEY CAN GET THEIR HANDS ON AND THE ROLES YOU ARTICULATE OR THAT NEED TO BE FILLED. HOW MUCH DOES THE C-SUITE HAVE THE AI SKILLS NECESSARY AT THE MOMENT? LEE: VERY INTERESTING QUESTION. WE ALSO RUN C-SUITE TRAINING PROGRAMS HERE AT GOOGLE CLOUD, AND THE TAKE-UP OF THOSE HAS BEEN IMMENSE IN THE LAST SIX MONTHS. WE ARE FINDING THAT IS REALLY PROGRESSING WELL NOW. THIS INITIATIVE IS MUCH MORE ABOUT A GRASSROOTS, NEXT-GENERATION OF SKILLS OF PEOPLE COMING INTO THE WORKFORCE OR LOOKING TO TRANSFER FROM THEIR EXISTING ROLE, SO WE SEE A LOT OF PEOPLE, EARLY IN THEIR CAREER, LOOKING TO RE-SKILL. THESE PROGRAMS ARE REALLY USEFUL FOR THAT. THE EXAMPLE I'VE GOT IN MY HEAD
IS ONE WHERE, IMAGINE YOU ARE JUST EXITING THE SERVICES, YOU ARE 25 YEARS OLD, YOU DO NOT QUITE KNOW WHAT YOU WANT TO DO. YOU COULD TAKE THESE PROGRAMS, MOVE INTO CYBERSECURITY. THESE ARE REALLY, REALLY GOOD JOBS. THE MEDIAN SALARY OF A CYBERSECURITY ROLE IN THE U.S. IS $135,000. THEY ARE THE SORTS OF ROLES THAT ARE GAME CHANGING FOR FAMILIES AND THEIR ECOSYSTEM. ED: I GET YOUR GRASSROOTS EXPLANATION, BUT PUBLIC SECTOR CLOUD IS SUCH A COMPETITIVE MARKETPLACE FOR YOU.
AWS AND AZURE ALSO PUTTING A LOT OF EMPHASIS ON PUBLIC-SECTOR SPEND. DOES LITERAL GRASSROOTS TRAINING HELP YOU GROW SOME MARKET SHARE THERE? JENSEN ONE TALKS ALL THE TIME ABOUT SOVEREIGN AI, BUT I AM YET TO SEE ANY EVIDENCE THAT GOVERNMENT DEPARTMENTS KNOW THEY HAVE TO GET THE CHECKBOOK OUT. LEE: I THINK WHAT WE ARE SEEING IS DEMAND ACROSS THE PUBLIC SECTOR TO AN INDIVIDUAL FOR SKILLS. WHEN I AM RECRUITING, I AM
LOOKING FOR PEOPLE WHO HAVE ENERGY AND PASSION AND GOOGLYNESS, BUT I AM ALSO LOOKING THAT THEY HAVE THE FUNDAMENTAL SKILLS. THESE PROGRAMS ARE REALLY GEARED FOR THE INDIVIDUAL, AND OBVIOUSLY, EVERY ORGANIZATION NEEDS TO DETERMINE WHAT SKILLS THEY NEED IN THEIR GROUP. ED: MORE ENERGY, MORE PASSION. LEE MOORE, UGO CLOUD CONSULTING VICE PRESIDENT. APPRECIATE THE TIME. CAROLINE: TIKTOK REFERENCES THERE. ED: THIS IS "BLOOMBERG TECHNOLOGY."
>> THE PRESIDENT WAS VERY DIRECT THAT THIS WAS A HUGE SUCCESS, THAT ISRAEL CAN BE PROUD IT IS NOT AND ALONE AND IT HAS SUPERIOR MILITARY CAPABILITY. IRAN UTTERLY FAILED, AND THAT SUCCESS ALONE SENDS A STRONG MESSAGE THROUGH THE REGION ABOUT ISRAEL'S PLACE THERE. ED: JOHN KIRBY SPEAKING EARLIER ON BLOOMBERG TELEVISION. WE ARE WAITING FOR MORE REMARKS FROM THE WHITE HOUSE AS PRESIDENT BIDEN OPENS A BILATERAL MEETING WITH IRAQ'S PRIME MINISTER. JOINING US IS "BALANCE OF POWER"'S HOST. WHAT ELSE ARE WE HEARING? MATTHEW:
TAKE A WIN, AND IF YOU DECIDE TO DO SOMETHING, PARTICULARLY IF YOU WANT TO OVERREACH AND ATTACK IRAN DARKLY, THE U.S. MAY NOT BE THERE TO SUPPORT YOU, HAVING SEEN THE U.S. PROVIDE CONSIDERED SUPPORT OVER THE WEEKEND, IT WAS QUITE REMARKABLE. JOHN KIRBY IS RIGHT. THIS WAS IN EX ORDINARY SUCCESS. I AM NOT SURE ALL THE PARTIES INVOLVED EVEN KNEW IT WAS CAPABLE TO BLOCK 99% OF THE HARDWARE THROWN UP IN THE AIR BY IRAN THE OTHER NIGHT. NOT A SINGLE UAV MANAGED TO INVADE ISRAEL. OF THE CRUISE MISSILES LAUNCHED, NONE INVADED THEIR AIRSPACE.
IT ALSO REQUIRES PERCEPTIVE ON THE OTHER SIDE AS WELL. THE PEOPLE OF ISRAEL NOW NOTE IRAN IS WILLING TO ATTACK ISRAEL DIRECTLY, AND THEY BELIEVE, IN MANY QUARTERS, THAT JUSTIFIES A RESPONSE. CERTAINLY BENJAMIN NETANYAHU, WHO IS HEARING THAT FROM THE RIGHT, DOMESTICALLY.
THE QUESTION IS WHETHER THE WHITE HOUSE CAN KEEP BENJAMIN NETANYAHU AND HIS GOVERNMENT RESTRAINED IN WHATEVER RESPONSE. CAROLINE: JOE MATHIEU, THANK YOU. MEANWHILE, WE TURN OUR FOCUS TO WHAT IS CURRENTLY UNDERWAY IN NEW YORK THERE DONALD TRUMP HAS ARRIVED AT THE COURTHOUSE THIS MORNING, WHERE HIS FIRST CRIMINAL TRIAL IS UNDERWAY, WHICH IS EXCITED TO LAST 6 TO 8 WEEKS KAYLA CAP THE IT IS -- 6 TO 8 WEEKS. LET'S GET THE LATEST ON THE
GROUND FROM KAILEY LEINZ. KAILEY: THIS IS THE FIRST TIME IN U.S. HISTORY A U.S. PRESIDENT HAS BEEN IN CRIMINAL TRIAL. HE IS -- AHEAD OF THE 2016 ELECTION. TRUMP PLEADED NOT GUILTY. HE DENIES ALL OF THESE
ALLEGATIONS. HE IS SITTING UPSTAIRS IN THE 15TH STORY COURTROOM AS THERE ARE A NUMBER OF MOTIONS TO DEAL WITH. THE JUDGE DENIED A NUMBER OF MOTIONS ALREADY COME INCLUDING ONE FOR RECUSAL, AND ALSO THE DEFENSE'S ATTEMPT TO BLOCK CERTAIN THINGS RELATED TO TRUMP'S EXTRAMARITAL AFFAIRS INTO EVIDENCE. THE JUDGE RULED THE JURY WILL BE ABLE TO HEAR THAT EVIDENCE.
THAT SAID, THE JURY IS NOT ASSEMBLED YET. ONCE THEY GET THROUGH ALL THESE MOTIONS, THAT IS WHEN JURY SELECTION WILL BEGIN. THEY WILL TRY TO FIND 12 JURORS AND 6 ALTERNATES CAN BE IMPARTIAL IN ASSESSING THIS CASE WHICH RELATES NOT JUST TO THE FORMER PRESIDENT BUT THE CURRENT PRESUMPTIVE REPUBLICAN PRESIDENTIAL NOMINEE. THIS IS A PROCESS THAT COULD LAST 6 TO 8 WEEKS IN TOTAL -- THAT COULD LAST 6 TO 8 WEEKS. IN TOTAL, IT COULD LAST TWO MONTHS. CAROLINE: KAILEY LEINZ, THANK YOU.
ALMOST AS A PROXY FOR BETTING ON TRUMP POTENTIALLY BEING THE NOMINEE AND FUTURE PRESIDENT AGAIN IN THE UNITED STATES HAS BEEN HIS OWN SOCIAL MEDIA COMPANY. THAT SOCIAL MEDIA STARTUP HAS BEEN DOWN A LOT TODAY. ED: PART OF THAT IS DUE TO AN OFFERING AND MARKET MECHANICS. I WAS LISTENING TO THE RADIO, BLOOMBERG RADIO SURVEILLANCE ON THE WAY IN, AND IT IS LIKE A PROXY PURE I THINK YOU ARE RIGHT. WHATEVER HAPPENS IN THAT TRIAL, AND KAILEY WILL BE ON THE GROUND FOR US, YOU KIND OF INFER YOUR THINKING ABOUT PRESIDENT TRUMP FROM IT IN THIS RACE. CAROLINE:
TRUMP MEDIA TECHNOLOGY GROUP FILED SHARES COME INCLUDING THOSE LINKED TO WARRANTS. THAT IS WHY YOU'RE GETTING SUPPLY-SIDE PRESSURE, BUT NOTABLY, IT HAS BEEN DOWN 60% FROM ITS HIGHS. IT IS PUBLICLY TRADING AS TRUMP MEDIA AND TECHNOLOGY GROUP. MEANWHILE, KEY TECHNOLOGY STORIES. YOU ARE THE PERSON BEHIND ONE OF THE MAIN ONES. YOU RAISED IN WITH THE ABILITY
TO REPORT ON EXEC IT IS LEAVING. ED: IT IS HARD TO FIGURE OUT WHETHER IT IS THE WORKFORCE -- THE CHIPS LEADERSHIP THAT LEFT EARLIER THIS YEAR. MUSK HAS TAKEN TO X TO TALK ABOUT IT. WHY DID THEY TIME IT THIS WAY, THE EXECUTIVES, IF IT WAS NOT LINKED TO LAYOFFS? I DO NOT HAVE AN ANSWER FOR THAT. CAROLINE: THIS PHASE OF GROWTH, THE IDEA WE ARE IN BETWEEN, BUT ARE WE? IF WE NEED TO BE PULLING BACK FROM A CHEAPER MODEL AND FOCUSING ON ROBOTAXIS? ED: WHAT I DID HERE IS, WHATEVER THE REASON FOR HIS DEPARTURE, THINGS ARE GOING WELL IN PLANNING FOR THE NEXT STAGE OF GROWTH. I HEARD 46.80 IS RAMPING
NICELY, SO PEOPLE'S REASONS ARE THEIR OWN, BUT CLEARLY, THE MARKET IS PAYING ATTENTION THIS MORNING. CAROLINE: THERE'S ALSO THE ONGOING EV CONTEXT THAT IS NOT A PRETTY PICTURE RIGHT NOW. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." IT WAS A BIG ONE. ED: SO MUCH TO RECAP ON THE PODCAST. WE ARE PUBLISHING TO APPLE, SPOTIFY, AND IHEART, AND OF COURSE THE BLOOMBERG PLATFORMS. FROM NEW YORK CITY AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY."
2024-04-17 09:25
