The Fed Decides, Microsoft and BlackRock Team Up | Bloomberg Technology
>> FROM THE HEART OF WHERE IN -- INNOVATION, MONEY AND POWER COLLIDE, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. ALL EYES ON POWELL. MARKETS ON EDGE AND WE WATCHED THE TECH SECTOR HEAD OF THE FED. ED: MICROSOFT AND BLACKROCK ARE TEAMING UP PLANNING TO LAUNCH A $30 BILLION AI INVESTMENT FUND. CAROLINE: GOOGLE WINS IN COURT THIS TIME PER EU JUDGES OVERTURNING THE COMPANIES 1.5 BILLION EURO ANTITRUST FINE. FIRST LET'S CHECK IN ON THESE MARKETS PUT ABIGAIL DOOLITTLE.
ABIGAIL: WE ARE HOURS AWAY FROM ONE OF THE MOST ANTICIPATED FED DECISIONS IN YEARS BECAUSE OF COURSE IT'S ALL BUT LIKELY THEY WILL IN FACT CUT AT THIS NEXT MEETING FOR THE FIRST TIME IN FOUR YEARS BUT THE BIG QUESTION IS WILL BE 25 BASIS POINT OR 50 BASIS POINTS ACCORDING TO PROBABILITY AND THE BLOOMBERG TERMINAL RIGHT NOW WE ARE LOOKING AT A 57% CHANCE OF A 50 BASIS POINT CUT, ONE OF THE FIRST TIMES THIS HAS HAPPENED IN A NONEMERGENCY CAPACITY PERHAPS RAISING QUESTIONS OF WHAT ARE THEY SEEING AND WHY WILL THEY MAKE SUCH A BIG CUT IF IT HAPPENS. NOT SO LONG AGO JAY BULLARD DID TELL CNBC HE THINKS THE CHANCES OF A 50 BASIS POINT CUT IS ACTUALLY OVERBLOWN SO WE HAVE SEEN THIS PROBABILITY COMING IN AT 5% AT 70% BUT THE MEAN POINT IS MORE THAN 50% RATE WHAT HAS THIS DONE FOR STOCKS. OVER THE LAST COUPLE OF MONTHS SINCE WE'VE SEEN SOME OF THE SECTORS IN PARTICULAR TECHNOLOGY KEEP WE'VE HAD THAT MAGNIFICENT SEVEN AND THE BOTTOM PANEL OF THE CHART WE ARE LOOKING AT DOWN ABOUT 5% WHERE YOU HAVE SOME OF THE RATE SENSITIVE SECTORS, HEALTH-CARE, DEFENSIVE SECTORS DOING BETTER BECAUSE THEIR DIVIDENDS WILL LOOK LESS ATTRACTIVE. THAT'S NOT THE CASE SINCE THE FED STARTED HIKING. IT IS CLUE TOP SECTOR. ALL THE SECTORS ARE NICE RALLY
EXCEPT FOR REAL ESTATE, HIGHER RATES LOWER THE VALUES ON REAL ESTATE SO THAT IS THE ONE LONE SECTOR OVER THE LAST TWO YEARS BUT HAS DONE POORLY. FINALLY, THIS IS MIND BLOWING IN AWAY. NVIDIA OF THE LAST TWO YEARS SINCE THAT FED HIKING CYCLE HAS STARTED UP MORE THAN 770%. WE HAVE THE LIKES OF META UP NEARLY 300%. THIS OFTEN APPLE BOTH UP ABOUT 50%, 75%. MORE RECENTLY AS WE'VE HAD THIS ROTATION INTO OTHER SECTORS, TECH COOLING OFF BUT YOU CAN SEE THOSE INVESTORS DOING QUITE WELL.
>> ABIGAIL DOOLITTLE THANK YOU. LET'S KEEP THE DISCUSSION GOING WITH MEGAN AND WE START BY ASKING HOW SIGNIFICANT IS TODAY'S FED DECISION FOR THE TECHNOLOGY SECTOR? >> I THINK IT'S IMPORTANT FOR THE TECH SECTOR IN THE ENTIRE MARKET. IF THE YIELDS KEEP MOVING HIGHER AS WE'VE SEEN AS OF LATE THEN THAT IS NEGATIVE FOR TECHNOLOGY AND TECHNOLOGY IS RALLYING ON THE ANTICIPATION WE WILL GET 50 BASIS POINTS FROM THE FED TODAY. IF THAT DOESN'T OCCUR THINK I WILL PUT THIS RALLY IN TECHNOLOGY AT RISK. >> THERE'S A PART OF THE MAG SEVEN STORY WHERE THOSE NAMES ARE PERFORMING IN ISOLATION OF EVERYTHING ELSE THAT'S HAPPENING IN OUR WORLD. BECAUSE OF THE COMMITMENT TO
INVEST IN THE INFRASTRUCTURE SUPPORTING AI. HOW CLOSELY TIED TO THE DUTCH ARE THE TWO STORIES. THAT IN CENTRAL BANK POLICY? MEGAN: I THINK CENTRAL BANK POLICY AND THOSE STORIES AROUND TECHNOLOGY ARE SEPARATE THINGS. THE INFRASTRUCTURE WITH
TECHNOLOGY, THE ADVANCEMENT WE WILL SEE, THIS IS GOING TO EVOLVE OVER TIME BUT THE VALUATIONS YOU ARE SEEING ON THESE STOCKS IS LINKED TO THE INTEREST RATE POLICY AS WELL AS YIELDS. IF THIS POLICY DOES NOT DELIVER WITH WHAT WE -- THESE HEIGHTENED VALUATIONS ARE ANTICIPATING THEN YOU ARE GOING TO SEE SOME VALUATION CORRECTION IN THESE NAMES. CAROLINE: IS THAT LIMITED TO THE BIG CAPS OR MORE BROADLY ACROSS TECHNOLOGY IN AND OF ITSELF? MEGAN: I THINK IT IS BROADLY ACROSS TECHNOLOGY AND EVEN SOME OF THE COMMUNICATION SERVICES. ANY OF THESE GROWTH TYPE OF NAMES YOU'VE SEEN WITH THESE VERY HIGH VALUATIONS. THESE ARE PRICING IN PERFECTION, THEY'RE PRICING IN THE FED WILL COME IN AND DELIVER WITH THESE INTEREST RATE CUTS, THEY WILL SAVE THE DAY LIKE WE HAVE BEEN USED TOO OVER THE PAST COUPLE OF DECADES AND THEY ARE PRICING IN PERFECTION FOR THE ECONOMY. NONE OF THIS IS SET IN STONE RIGHT NOW SO I THINK THERE IS STILL A BIG RISK FOR SOME OF THESE GROWTH AND HIGH PE LEVEL SECTORS.
>> IS THAT JUST THE U.S. OR DO WE SEE THE WIND TAKEN OUT OF THE SALES OF EUROPEAN TECH AS WELL? MEGAN: WE DON'T HAVE AS MUCH TECHNOLOGY AS THE EUROPEAN INDICES. THEY ARE NOT AS TECH HEAVY AS THE U.S. IS BUT WE HAVE SEEN THE CORRELATION HERE WHEN WE HAVE
THE SELLOFF IN THE GROWTH OR TECHNOLOGY HERE IN THE U.S. ATTENDS TO FILTER INTO OVERSEAS AS WELL. CAROLINE: -- ED: HOW IMPORTANT TO YOU AND THE TECHNOLOGY INVESTOR AROUND THE WORLD IS THE PATH FORWARD. WE'VE BEEN WAITING FOR THE SEPTEMBER AND WE ALREADY ASKED IN WHAT INCREMENTS WILL WE HAVE FURTHER RATE CUTS FROM THERE. >> THAT'S A GREAT QUESTION BECAUSE THEY CAN DO SEVERAL THINGS AT THIS MEETING. THEY CAN DELIVER WITH 25 BASIS POINTS WHICH IS WHAT I THINK THEY SHOULD DO.
THEY SHOULD REITERATE THEY WILL CONTINUE TO MONITOR DATA, THEY WILL ACT ACCORDINGLY PAID ITS MEETING BY MEETING AND THEN IF THEY GO WITH 50 BASIS POINTS THEY COULD COME IN AND SAY THIS IS A FINE TUNING AND WE WILL BE ON HOLD NOW. YOU GET THE CUTS PRICED INTO THE MARKETS FOR THE REST OF THE YEAR MOVING OUT. THE MOST IMPORTANT THING TODAY WHETHER IT'S TECHNOLOGY OR THE REST OF THE STOCK MARKET IS WHAT ARE THEY GOING TO SAY FROM THE DOT PLOTS GOING FORWARD. WHAT ARE THEY SAYING FOR THE UNEMPLOYMENT, THE ESTIMATES THEY WILL HAVE TO PUT OUT. WHAT ARE THEY SAYING AS FAR AS INFLATION BECAUSE LET'S KEEP IN MIND INFLATION HAS COME DOWN SIGNIFICANTLY BUT IT IS STILL IN CERTAIN AREAS VERY STICKY. THERE PRESS CONFERENCE AND THE PROJECTIONS THEY PUT OUT AFTER THE MEETING THEY ARE MORE IMPORTANT OBVIOUSLY IN FACT US THEN WHETHER IT'S 25 OR 50 BASIS POINTS TODAY. ED: THIS -- CAROLINE:
THERE'S WHOLE OF THE PARTS OF THE CAPITAL STRUCTURE YOU CAN OWN WITH THE TECHNOLOGY. WHAT IS IT MEAN FOR CORPORATE DEBT OF APPLE, SOME OF THE NAMES THAT HAVE SO MUCH CASH ON THE BALANCE SHEETS AS WELL, DO BOND MARKETS FEEL THE PRESSURE IN THE SAME WAY THE EQUITY SIDE WILL? MEGAN: I THINK BOND MARKET WILL FEEL THE SAME WAY. THE YIELDS HAVE COME DOWN QUITE A BIT AND ARE BACKING UP A LITTLE BIT NOW BUT YIELDS HAVE COME DOWN SUBSTANTIALLY AND THEN WHEN YOU LOOK AT THE LONGER-TERM OVER YIELDS AND WHETHER YOU'RE LOOKING AT LONG-TERM DEBT THERE IS THIS FOCUS ON TREASURIES, A MAJOR ISSUE FROM THE TREASURY SIDE OF THINGS THAT IS THE DEFICIT AND THERE'S NOT BEEN ANYTHING TO ADDRESS THAT AND I DON'T SEE EVEN WITH AN ELECTION COMING UP THAT THERE IS ANYTHING THAT WILL CHANGE THAT. THE AMOUNT OF ISSUANCE ON THE LONG END OF THE CURVE. ANYBODY FOCUSING ON DEBT OR IS DEBT HEAVY AND I REALIZE THE TECHNOLOGY SECTOR IS NOT AS DEBT HEAVY AS OTHER SECTORS.
THAT'S GOOD HAVE AN IMPACT ON THE LONG INTO THE YIELD CURVE. >> I LIKE TO END THE CONVERSATION BY TRYING TO LEARN THE YEAR THAT'S GONE ABOUT WHAT MIGHT HAPPEN IN THE YEAR AHEAD. I USE NVIDIA AS THE CASE STUDY. CAPITAL EXPENDITURES AND
INVESTMENT. THE OTHER PHENOMENON THAT'S HAPPENED IS RETAIL INVESTORS ARE PILED INTO NVIDIA AS WELL. HOW DOES A CHANGE IN INTEREST RATE ENVIRONMENT CHANGE THE FANFARE OF THE MARKET AND THE PSYCHOLOGY OF THE MARKET OVER THE NEXT 12 MONTHS. MEGAN:
IT ALL COMES DOWN TO WHAT IS THE PRICE OF THE STOCKS AND WHEN YOU LOOK AT STOCKS THAT HAVE VERY HIGH ELEVATED PRICE MULTIPLES WE SAW WHAT HAPPENED IN 2022. IF INTEREST RATES RISE ACROSS THE BOARD AND YOU SEE THOSE HIGH PE LEVEL STOCKS AND THAT'S TECHNOLOGY SPECIFICALLY, THEY END UP GETTING HURT BY THIS. SO GOING INTO NEXT YEAR I STILL THINK THE FED HAS THE FLEXIBILITY TO CONTINUE TO CUT RATES I JUST DON'T THINK THEY WILL DELIVER THE WAY THAT THE MARKET IS PRICING THIS IN RIGHT NOW. CAROLINE:
GREAT TO HAVE YOU TODAY. WE THANK YOU. WHAT'S INTERESTING ABOUT THIS IS PERHAPS YOU WISH YOU HAD THE INVESTMENT ADVICE DECISION-MAKING PROWESS OF THE INVESTING ELITE. THINK DAVID TAPPER, SO MANY MORE. TODAY WE UNDERSTAND AND ETFS
TRYING TO PROMISE THAT POWER OF AI. FINTECH STARTUP LAUNCHING A CHATBOT POWERED BY CHATGPT, GENAI, THEY CALLED HIM THE INVESTMENT COMMITTEE. THEY ARE GOOD ACT LIKE THESE HEDGE FUND AFICIONADOS TO MAKE DECISIONS PREYED WHAT YOU THINK? ED: WE KNOW THE OBSESSION OF THE MARKET ON THOSE NAMES, BUT WHAT I FIND ASTONISHING IS THE SIMPLICITY OF IT. IT'S A STRATEGY GENERATED THROUGH A GENERATIVE AI TOOL. YOU JUST GO INTO IT AND ASK WHAT'S THE STRATEGY HERE, WHAT WOULD WARREN BUFFETT DO AND YOU GET A RESPONSE.
>> AND THEN THE ETF TRADES OFF OF IT. WE WILL SEE HOW THIS ONE PLAYS OUT. AN INTERESTING LAUNCH TODAY. WE HAVE SO MUCH MORE TO TALK
ABOUT AND OF COURSE IS A SERIOUS SIDE IN TERMS OF GEOPOLITICS AND IT AFFECTS TECHNOLOGY BECAUSE PAGES AND TELECOM DEVICES ARE EXPLODING IN LEBANON. MORE ON THAT SITUATION NEXT. THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: AN UPDATE FROM LEBANON. MORE PAGES AND -- PAGERS AND OTHER TELECOM UP -- TELECOM DEVICES EXPLODING ONE DAY AFTER SAY -- SERIES OF SIMILAR BLASTS ACCORDING TO THE STATE RUN NATIONAL NEWS AGENCY. WHAT DO WE KNOW ABOUT THE EVENTS OF THE LAST HOUR AND WHAT'S HAPPENING IN LEBANON? JOUMANNA: IT APPEARS ANOTHER ATTACK ON HEZBOLLAH'S COMMUNICATIONS HAS HAPPENED IN THE LAST HOUR. HANDHELD RADIOS AND WALKIE-TALKIE DEVICES ALSO EXPLODING IN PEOPLE'S HANDS, CARS AND ACROSS HOMES EVEN.
THIS OF COURSE COMES AFTER YESTERDAY'S ATTACK WHERE MORE THAN 2000 PAGERS WENT OFF SIMULTANEOUSLY EXPLODING INTO THE PAGERS THAT THESE OPERATIVES HAVE BEEN USING. IT IS IMPORTANT TO NOTE HERE THAT ISRAEL HAS DECLINED TO TAKE -- HAS NOT COMMENTED ON ANY OF THE ATTACKS THAT HAVE TAKEN PLACE OR THE INCIDENTS, BUT BOTH HEZBOLLAH AND THE LEBANESE GOVERNMENT WERE QUICK TO POINT THE FINGER AT ISRAEL SAYING ISRAELI INTELLIGENCE BEING BEHIND THIS OPERATION. WHAT IS CLEAR HERE IS THIS WAR THAT'S BEEN GOING ON, A HOT WAR SO TO SPEAK EVER SINCE OCTOBER 7 ON ISRAEL'S NORTHERN BORDER IS DEVELOPED AND TRANSFORMED INTO A NEW TYPE OF WARFARE, CYBER WARFARE AND A LOT OF QUESTIONS ARE BEING ASKED ABOUT HOW THESE DEVICES HAVE BEEN COMPROMISED. CAROLINE: CAN YOU TELL US ABOUT THE SUPPLY CHAIN ULTIMATELY WHAT YOU SAY IS AN ELABORATE ATTACK. THE TAIWANESE COMPANY GOLD
APOLLO HAS SPOKEN OUT. JOUMANNA: YES. THE BRANDING ON THE PAGERS THAT WERE DETONATED YESTERDAY AND BE POINTED BACK TO A NOT WELL-KNOWN TAIWANESE MANUFACTURER CALLED GOLD APOLLO. THEY ACTUALLY ISSUED A STATEMENT SAYING THOSE PARTICULAR MODELS THAT WERE USED FOR DETONATIONS YESTERDAY WERE NOT ONES THAT THEY MANUFACTURE THEMSELVES.
INSTEAD IT WAS A COMPANY BASED IN HUNGARY THAT HAD OBTAINED THE LICENSING TO USE THE BRANDING ON DEVICES THEY MANUFACTURED. BLOOMBERG TRIED TO REACH OUT TO THEM FOR COMMENTS BUT WE HAVE NOT HEARD BACK FROM THEM. BUT AGAIN ALL OF THIS IS PART AND PARCEL OF AN ELABORATE PLAN AND SEEMS TO BE THE CASE IT'S NOT JUST THE PAGERS THAT WERE COMPROMISED BUT OTHER TELECOMMUNICATION DEVICES THAT HEZBOLLAH MILITANTS HAVE BEEN USING AND EXPERTS IN THE FIELD SAY THAT THE WAY THIS COULD HAVE BEEN DONE IS BY WHOEVER TAMPERED WITH THE DEVICES PUTTING IN SMALL QUANTITIES OF EXPLOSIVE DEVICE 10 TO 20 GRAMS THAT WOULD GET TRIGGERED ON A SIGNAL THAT WOULD COME THROUGH SO THEY WOULD ALL EXPLODE SIMULTANEOUSLY. THE COUNTRY IS ON HIGH ALERT BECAUSE THIS IS THE SECOND SUCH INTELLIGENCE BREACH IN TWO DAYS.
ED: THERE ARE SEVERAL PARTIES INVOLVED AND WE ARE WAITING RESPONSES FROM OTHERS BUT THE UNDERSTANDING IS THAT LEBANON AND HEZBOLLAH WHICH IS A GROUP THE UNITED STATES TO ANNOUNCES AS A TERRORIST GROUP OF ACCUSED ISRAEL OF BEING BEHIND THE ATTACK. WE HAVEN'T HEARD FROM ISRAEL, WHAT ELSE DO WE KNOW ABOUT THE POLITICAL SITUATION? JOUMANNA: AGAIN IT IS FAST-MOVING WITHIN LEBANON THERE IS A MAJOR CONCERN WERE MOVING TO A NEW TYPE OF WARFARE AND THAT IN THE PAST THE WAR HAD BEEN CONDUCTED SOLELY ON THE SOUTHERN PART OF THE COUNTRY AND BORDERS BUT NOW WHAT'S HAPPENING THERE'S BEEN A COMPLETE INTELLIGENCE BREACH, PEOPLE ARE VERY CONCERNED ABOUT WHAT THIS MEANS FOR TELECOMMUNICATIONS IN THE COUNTRY AND THE POTENTIAL FOR FURTHER ACTION OR FURTHER OPERATIONS COMING OUT OF ISRAEL. YESTERDAY THE ISRAELI PRIME MINISTER AND JEANETTE YAHOO! SAID THAT THERE IS ANOTHER NEW WAR OBJECTIVE NOW TO RETURN SECURITY TO THE NORTHERN BORDER OF ISRAEL SO THAT CITIZENS AND THE COUNTRY CAN RETURN BACK. THEY HAD BEEN EVACUATED AND FORCED TO MOVE EVER SINCE OCTOBER 7. SO THERE IS A FOCUS FROM ISRAEL
AND THE ISRAELI GOVERNMENT TO DO SOMETHING ABOUT THE SITUATION ON THE BORDER, THE CONCERN OF WHICH IS IN THE ABSENCE OF A DIPLOMATIC SOLUTION WE MAY BE LOOKING AT SOMETHING LIKE A FULL-SCALE INVASION. >> RISK OF SERIOUS DRAMATIC ESCALATION IS WITH THE UNITED NATIONS IS CURRENTLY SAYING. WE THANK YOU SO MUCH FOR COMING TO US FROM THE MIDDLE EAST. WE WILL BE JOINED BY CATHERINE KOSTER AVA FOR HER COMPANY'S TAKE ON AI POWERED CLM. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IT'S TIME FOR TODAY'S AI IN ACTION.
WE ARE BRINGING IN THE CEO OF A NO CODE PLATFORM ENABLING THE AUTOMATION OF WORKFLOWS AND CRM THANKS TO THE POWER OF ARTIFICIAL INTELLIGENCE. JUST ANNOUNCED $200 MILLION IN NEW FUNDING OVER THE SUMMER. THE VALUE OF WHAT YOU PROVIDE IS LESS ENGINEERS AND CODERS NEEDED.
I CAN BUILD MY OWN APPLICATION USING THIS. >> SO TRUE AND THANK YOU VERY MUCH FOR HAVING ME. I'M EXCITED TO BE HERE TODAY AND YOU KNOW WHEN WE FOUNDED THE COMPANY 10 YEARS AGO THE BIGGEST VALUE WE BROUGHT TO OUR CLIENTS WAS TIME TO VALUE. THE ABILITY TO BUILD APPLICATIONS AND NOT BE A PROFESSIONAL SOFTWARE DEVELOPER AND NOW WE ARE DOING THAT WITH THE HELP OF AI AND THAT IS THE FUTURE. ED: IN THE WORLD OF TECHNOLOGY, I THINK WE ASK OURSELVES ABOUT DISRUPTION VERSUS WHAT THE INCUMBENTS ARE DOING. I SPENT A LOT OF TIME WITH SALESFORCE AND SPEAKING TO SALESFORCE EXECUTIVES AND THEY WOULD TELL YOU THEY ARE DOING EXACTLY THE SAME THING.
HOW DO YOU RESPOND TO THAT? KATHERINE: LOVE THE QUESTION. LET'S START WITH THE EVOLUTION OF CODING. IF WE GO BACK INTO THE 80'S IT WAS HIGH CODING YOU BASICALLY COULDN'T BUILD THE APPLICATION NOT BEING A PROFESSIONAL SOFTWARE DEVELOPER AND THE LOW CODE CAME IT WAS LIKE RAPID APPLICATION DEVELOPMENT INDUSTRY AND THE NO CODE EMERGED SO WHAT WE ARE DOING DIFFERENT FROM OUR COMPETITORS IS GIVING THE ABILITY TO DESIGN YOUR APPLICATIONS WHICH IN NOT BEING IN THE TECH INDUSTRY AT ALL WHICH ALLOWS TIME TO VALUE, TIME-TO-MARKET AND BE SIGNIFICANT FASTER. YOU NOT ONLY DEVELOP YOUR OWN
APPS AND AUTOMATE MULTIPLE USE CASES, YOU ACTUALLY REPLACE PEOPLE IN MULTIPLE DIFFERENT ROLES LIKE CASE RESOLUTIONS LIKE CAMPAIGN MANAGEMENT AND IN COMPARISON TO SALESFORCE THE BIGGEST DIFFERENCE IS WE BUILD THOSE USE CASES NOT BEING A TECHNICAL PERSON SO YOU DEFINE THE USE CASES WHERE AI IS HELPING YOU TO AUTOMATE TASKS WITHOUT BEING A PROFESSIONAL DEVELOPER. CAROLINE: YOU SAID REPLACE PEOPLE. FOR MANY THAT IS THE KEY WORRY AROUND ARTIFICIAL INTELLIGENCE PRETTY MOST PEOPLE SAY THEY WILL BE AUGMENTED. -- KATHERINE: I LOVE LOOKING AT IT THROUGH AUGMENTATION. WE ACTUALLY EMPOWER OUR END-USERS TO DO THEIR JOB BETTER. CAROLINE:
BUT YOU SAID REPLACE PEOPLE SO HAVE PEOPLE BEEN REPLACED DO YOU THINK? KATHERINE: PARTIALLY YES. IF WE TALK ABOUT A CALL CENTER PEOPLE ARE DOING MORE INTELLIGENT REPLACED IN A VERY GOOD WAY BECAUSE BASICALLY AI IS TAKING OVER ROUTINE TASKS WHILE MORE INTELLIGENT WORK IS BEING DONE BY PEOPLE. LET ME GIVE YOU AN EXAMPLE WITH BUILDING WORKFLOWS, BUILDING YOUR OWN APPLICATIONS WITH THE HELP OF AI. AI DOES THIS WORK FOR YOU WHILE YOU DO MORE INTELLIGENT WORK WHICH IS INTEGRATION OF WORKFLOW APPLICATIONS INTO THE ECOSYSTEM OF YOUR ORGANIZATION. IT DOES REQUIRE MORE SKILLS WHICH IS A BENEFIT FOR WORKERS BECAUSE THEY CAN GROW IN THEIR PROFESSIONAL SPACE. CAROLINE:
WE WANT TO THANK YOU FOR BRINGING THE PROS AND CONS AND WHAT YOU'RE BUILDING AND THE VALUATION CEO. THANK YOU VERY MUCH INDEED. SHIFTING TO ANOTHER PART OF AI, BLACKROCK AND MICROSOFT TEAMING UP ON ONE OF THE LARGEST EFFORTS TODAY TO BANKROLL THE BUILD OUT OF DATA WAREHOUSES AND ENERGY INFRASTRUCTURE BEHIND THE BOOM IN ARTIFICIAL INTELLIGENCE. THIS OF COURSE BEING AN ENORMOUS UNDERTAKING FROM AN INFRASTRUCTURE PERSPECTIVE.
DIGGING INTO SOME OF THE INTRICACIES AROUND THIS PARTICULAR DEAL THAT'S BEEN STRUCK BETWEEN AN ENORMOUS ASSET MANAGER AND LARRY FINK WHO WAS POSTING ON VARIOUS PLATFORMS YESTERDAY ALL ABOUT HOW MUCH THEY ARE SEEING THIS WHOLE SEISMIC SHIFT AND THE NEED FOR ARTIFICIAL INTELLIGENCE. THE SHEER SCALE OF MONEY NEEDED BUT HE SEEMED TO THINK IT WAS RELATIVELY EASY TO COME BY. THIS IS A MASSIVE AMOUNT OF MONEY AND EXPERTISE COMING FROM NVIDIA. >> IT IS AND THANK YOU FOR HAVING ME. IT SOUNDS MASSIVE DOESN'T IT. BUT IT'S JUST THE TIP OF THE
ICEBERG. REMEMBER THAT EVEN BEFORE THIS $30 BILLION FUND WAS ANNOUNCED, MICROSOFT HAD ALREADY SIGNED A MULTIBILLION DOLLAR CONTRACT WITH BROOKFIELD JUST TO BUILD SOME AND WILL ENERGY PLANTS THAT WOULD IN TURN SUPPLY THE ELECTRICITY FOR DATA CENTERS THAT ARE NECESSARY FOR AI. AND BEFORE THIS ANNOUNCEMENT WE HAD THE SCOOP ON HOW SAM ALTMAN WAS WORKING ON HIS OWN PLAN FOR AI INFRASTRUCTURE AND PUSHING FOR IT HERE IN THE U.S.
THAT WOULD'VE ALSO COST TENS OF BILLIONS OF DOLLARS. SO WE ARE IN THE END HUNDREDS OF BILLIONS OF DOLLARS OF AI INFRASTRUCTURE NECESSARY TO KEEP THE BOOM HAPPENING AND THIS IS JUST THE LATEST ANNOUNCEMENT. ED: EXACTLY SO PRAY WHEN I READ THE STORY IT'S ALL THE SAME NAMES REALLY THAT WE'VE BEEN TALKING ABOUT.
WHAT'S DIFFERENT ABOUT THE BLACKROCK AND MICROSOFT INITIATIVE SEEMS TO BE A MORE MICRO FOCUS ON ENERGY BUT ALSO DEPLOYING CAPITAL OUTSIDE THE U.S. AS WELL PRINT LYNN: THAT IS RIGHT AND THAT'S SOMETHING THAT'S BEEN A BIG PART OF SAM ALTMAN'S PUSH HAS BEEN GOING OUT THERE ABROAD TRYING TO ATTRACT FOREIGN SOURCES OF MONEY TO FUEL THIS AI BOOM. IT WAS VERY INTERESTING TO SEE THE ABU DHABI FUND INVESTED IN THIS BUT ALSO AS YOU SAID THE ENERGY PART OF IT IS THE CRITICAL PART AND OUR VERY OWN BRAD STONE INTERVIEWED SAM ALTMAN AT DAVOS YEAR AGO. HE SAID SOMETHING VERY SIMILAR. HE SAID I DO NOT THINK THE WORLD HAS YET REALIZED HOW BIG OF AN INCREASE WE ARE TALKING ABOUT IN ENERGY DEMANDS BECAUSE OF THE AI BOOM, BY OUR ESTIMATES WE ARE TALKING ABOUT POSSIBLY 10 TIMES MORE ENERGY BEING PUT TOWARDS AI DATA CENTERS BY 2030 THAN TODAY'S LEVELS SO FOR SURE THE FOCUS NEEDS TO BE ON THE ENERGY ASPECT OF THE EQUATION. >> WE KNOW PEOPLE WERE AT THE ADMINISTRATION OF THE WHITE HOUSE TALKING ABOUT THIS, THE FRUITS OF THOSE LABOR? LYNN: I DON'T KNOW IF THIS FUND IS THE FRUITS OF THOSE LABORS BUT FOR SURE WHAT CAME OUT OF THOSE CONVERSATIONS AS FAR AS WE KNOW FROM SOURCES WAS IN AGREEMENT FOR A TASK FORCE THAT WOULD LOOK AT THESE ISSUES TOGETHER. AND I THINK THAT PART OF THAT
WILL BE LOOKING AT ALL OF THE PERMITTING AND REGULATORY HURDLES THAT NEED TO BE CLEARED IN ORDER FOR THESE MASSIVE POWER PLANTS AND DATA CENTERS TO EVEN BE -- FOR ONE TO EVEN FATHOM THEM BEING BUILT IN THE U.S. IN TERMS OF THE ENVIRONMENTAL SPACE. ED: THANK YOU VERY MUCH. COMING UP ON BLOOMBERG TECHNOLOGY HOW GOOGLE WON ITS COURT BATTLE OVER A NEARLY $2 BILLION FINE FROM THE EUROPEAN UNION. DISCUSSION COMING UP NEXT, THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED: CAROLINE: I'M ED LUDLOW IN SAN FRANCISCO. FED DAY 2:00 P.M. WILL BEGET A RATE CUT TO THE TUNE OF 25 OR 50 BASIS POINTS? THAT'S WHAT THE MARKET WATCHES FOR AND WE CURRENTLY TREAD WATER ON THE NASDAQ 100 YOU'RE OFF BY 1/10 OF 1%. THERE IS SOME CONCERNS THE RISK AVERSION FOR TECHNOLOGY AND ONCE WE GET THOSE RATE CUTS. ON THE HIGHER SIDE WE HAVE APPLE POWERING HIGHER TODAY, THE BIGGEST LIFT FROM A POINTS PERSPECTIVE AT 1.7% SO ALL EYES ON THOSE MAG SEVEN NAMES AND WHETHER THEY CONTINUE TO RUN IN THE WAY WE ARE USE TO EVEN WITH A HIKING CYCLE.
UBISOFT, STAR WARS OUTLAWS THERE'S BEEN A LOT OF WORRIES ABOUT THIS NAME AND ONCE WE HAVE BMO ANALYST SAYING IT IS SO CHEAP NOW, THIS FRENCH MAKER OF THE LATEST GAMES THAT WE HAVE TO BE BUYING IN. I'M LOOKING AT ALPHABET JUST TREADING WATER ALSO AHEAD OF THE FED, THERE'S BEEN SOME INTERESTING MICRO NEWS. YOU TWO CREATORS EVENT HAPPENING HERE IN NEW YORK AND SOME UNVEILING'S BUT THERE IS A KEY EVENT EARLIER IN EUROPE AND YOU'VE GOT THE DETAILS. ED: GOOGLE WINNING A COURT FIGHT WITH THE EUROPEAN UNION OVER A $1.7 BILLION FINE FOR ILLEGALLY STOPPING RIVALS FROM PLACING
ADS ON THIRD-PARTY WEBSITES. THE COURT CITED KEY MISTAKES IN THE ORIGINAL PROBE. SAM JOINS US FROM BRUSSELS. THIS IS A POSITIVE OUTCOME FOR GOOGLE.
EXPLAIN THE BASICS OF THE COURT DECISION? SAM: IT'S QUITE A RARE WIN FOR GOOGLE IN THE EUROPEAN UNION'S COURT. SUPPORTED SERVICES WINNING IN THE LOWER TIER COURT SO THE DECISION CAN ACTUALLY BE APPEALED TO THE EUROPEAN COURT OF JUSTICE WHICH IS THE HIGHEST COURT. THIS $1.7 BILLION FINE WAS SLAPPED ON GOOGLE IN 2019 AFTER EU ANTITRUST CHIEF SAID IT WAS ILLEGALLY PREVENTING RIVAL SEARCH ENGINES RUN BY THE LIKES OF YAHOO! AND MICROSOFT FROM PLACING ADS ON WEBSITES LIKE ONLINE NEWSPAPERS, TRAVEL PLATFORMS AND BLOGS, ETC.. AT $1.7 BILLION FINE HAS BEEN STRUCK DOWN BY EU JUDGES WHO
HAVE SAID CITING A NUMBER OF ERRORS IN THE INVESTIGATIONS INCLUDING IN THEIR DEFINITIONS AND THE DURATION OF THE ALLEGED ABUSIVE BEHAVIOR. CAROLINE: GOOGLE ITSELF SAYING THEY ARE PLEASED WITH THE RESPONSE. IT REALLY FACTORED ON A VERY NARROW SUBSET OF TEXT ONLY SEARCH ADS AND BASICALLY THEY'VE GONE BACK AND CHANGE THE CONTRACTS, 2016 BUT THIS ISN'T IN THE ONLY FOCUS ON AD TECH AND ITS POWER IN THAT SPACE NOT JUST IN EUROPE ALSO THE U.S.. SAM: INDEED.
YOU HAVE TWO PARALLEL FRONTS ON GOOGLE'S ADVERTISING TECHNOLOGY BUSINESS. THE CASE TODAY IS MORE ABOUT DISPLAY ADVERTISING, BUT WHEN IT COMES TO ADVERTISING TECHNOLOGIES THERE IS A MUCH MORE IF YOU LIKE EXISTENTIAL RISK TO GOOGLE'S LONG-TERM SUSTAINABILITY IN THESE TYPES OF MARKETS. YOU THE DEPARTMENT OF JUSTICE CASE, IT'S EMBROILED IN LEGAL PROCEEDINGS AT THE MOMENT. BUT IN THE EUROPEAN UNION THEY HAVE THEIR OWN INVESTIGATION TO GOOGLE'S ADVERTISING TECHNOLOGIES WHICH WE ASSUME COULD LEAD TO AN EVENTUAL BREAKUP POTENTIAL IN THE COMING MONTHS.
THAT'S THE INVESTIGATION THAT STILL NEEDS TO BE CONCLUDED FOR THE EUROPEAN COMMISSION IS CERTAINLY MAKING PROGRESS ON WHAT WOULD BE ITS FOURTH INVESTIGATION INTO GOOGLE'S BUSINESS AND POTENTIAL ABUSES AND DOMINANCE. CAROLINE: WE THANK YOU SO MUCH ON ALL THINGS EU VERSUS BIG TECH. LET'S TALK ABOUT HAPPENING ON THE HILL WITH BIG TECH, THE FOCUS ON ELECTION THREATS. EXECUTIVES FROM THE LIKE OF GOOGLE, MICROSOFT AND META ARE ALL SET TO APPEAR. JACKIE JOINS US FROM D.C.
WITH MORE. WHO ARE WE EXPECTED TO HEAR FROM? >> EVERYONE IS TUNING INTO THE FED DECISION I WILL BE ON CAPITOL HILL AT THAT SENATE INTELLIGENCE HEARING AND WE ARE EXPECTED TO SEE EXECUTIVES LIKE GOOGLES KITT WALKER, NICK CLEGG AND MICROSOFT PRESIDENT BRAD SMITH AND REALLY WITH THE FOCUS HERE TODAY WILL BE WHAT IS THE ROLE AND RESPONSIBILITY OF TECH COMPANIES IN DETECTING MISINFORMATION AND DISINFORMATION ONLINE PARTICULARLY AS IT RELATES TO FOREIGN INTERFERENCE IN OUR ELECTIONS AND THIS IS GOOD B.A.T. FOCUS FOR THIS BIPARTISAN PANEL, IT'S CHAIRED BY MARK WARNER FROM VIRGINIA AND THE VICE CHAIR IS MARCO RUBIO FROM FLORIDA. THIS IS AN ISSUE BOTH SIDES OF
THE AISLE CARE ABOUT AND WHAT THEY WANT TO UNDERSTAND IS WHAT HAVE COMPANIES BEEN DOING TO FULFILL THEIR COMMITMENTS TO DETECT THIS KIND OF INTERFERENCE IN ELECTIONS ONLINE. JUST YESTERDAY VERY TIMELY MICROSOFT PUBLISHED A DETAILED REPORT THAT SHOWED RUSSIA WAS ACTUALLY SPREADING PHONY VIDEOS ONLINE THAT WERE TARGETING VICE PRESIDENT KAMALA HARRIS'S CAMPAIGN. THIS IS JUST KIND OF THE TYPE OF REPORT YOU'VE SEEN SOME TECH COMPANIES, OUT AND PUBLISH AND SAY THIS IS WHAT WE ARE SEEING FROM OUR END OF THINGS. OPENAI IN MAY RELEASED A SIMILAR REPORT THAT SAYS THEY DETECTED SOME FOREIGN INTERFERENCE FROM ACTORS LIKE CHINA, IRAN AND ISRAEL TRYING TO CHANGE POLITICAL DISCOURSE AROUND THE WORLD. OPENAI WON'T BE PRESENT AT THE HEARING TODAY BUT THIS IS THE KIND OF REPORT AND ACTION SENATORS WANT TO HEAR, THAT COMPANIES ARE PROACTIVELY DOING TO PREVENT THIS KIND OF DISINFORMATION FROM PROLIFERATING. ED: WHAT THE U.S. VOTER, BLOOMBERG TECHNOLOGY
AUDIENCE MEMBER MIGHT ASK, IT'S LESS THAN TWO MONTHS UNTIL THE ELECTION SO IS THIS GREAT SENATE HEARING WITH THIS TECHNOLOGIES EXECUTIVES GOING TO HAVE A FOCUS OR IMPACT ON THE UPCOMING PRESIDENTIAL ELECTION OR IS THE IDEA ITS BIGGER PICTURE, THE INTEGRITY OF OUR ELECTIONS LONGER-TERM? JACKIE: BOTH AND THAT IS EXACTLY RIGHT. I THINK RUSSIA IS SUCH A FOCUS FOR THIS COMMITTEE ON BOTH SIDES OF THE AISLE THEY'VE CLEARLY BEEN TRYING TO SWAY U.S. ELECTIONS EVEN BEFORE THIS UPCOMING ONE IN NOVEMBER.
WHAT YOU ARE SAYING EXACTLY IT IS THIS INSTITUTION AND PEOPLE'S ABILITY TO BELIEVE BUT WHAT THEY SEE ONLINE IS ACTUALLY TRUE. WE DON'T HAVE A LOT OF TIME BEFORE THE ELECTION BUT AS YOU KNOW THINGS SPREAD SO QUICKLY ONLINE ESPECIALLY IN THIS AGE OF GENERATIVE AI. SO WHATEVER THEY CAN DO TO PUT THE SPOTLIGHT ON COMPANIES SO THEY CAN PROACTIVELY MOVE AND ATTACKED AND PREVENT THIS KIND OF STUFF FOR MAKING IT ONTO OUR PHONES.
IT'S AN EFFORT BUT WILL IT BE EFFECTIVE IS YET TO BE SEEN. CAROLINE: JACKIE WE THANK YOU. WHAT IF WE GOT COMING UP? ED: SOME MORE NEWS HEADLINES, IT'S TIME FOR TALKING TECH. AMAZON NAMING THEIR NEW HEAD OF CONSUMER BUSINESS IN INDIA DARTING OCTOBER 1. HE JOINED AMAZON IN 1999 AND LEADS THE CONSUMER BUSINESSES FOR THE MIDDLE EAST, SOUTH AFRICA, AND TURKEY. JP MORGAN IN DISCUSSION WITH
APPLE TO TAKE OVER THEIR CREDIT CARD PORTFOLIO FROM GOLDMAN SACHS. JP MORGAN AMONG A SLEW OF CREDIT CARD ISSUERS THAT HAVE LOOKED TO TAKE OVER THE APPLE CARD WHICH LAUNCHED WITH GOLDMAN FIVE YEARS AGO AND IS NOW SEEKING TO LOOK ELSEWHERE. HACKERS BEHIND A CYBERATTACK OF DRUG DISTRIBUTOR SAYING CORA -- OF DRUG DISTRIBUTOR CENCORA WERE PAID IN THREE INSTALLMENTS OF BITCOIN AND WAS THE LARGEST KNOWN CYBEREXTORTION PAYMENTS EVER MADE. CAROLINE: COMING, 23 AND ME'S ENTIRE BOARD JUST QUIT IN PROTEST OF THE CEOS PLANS TO TAKE THE COMPANY PRIVATE. DETAILS NEXT, THIS IS BLOOMBERG TECHNOLOGY. SEASON AIRS TONIGHT AT 9:00 P.M. NEW YORK TIME.
THIS IS BLOOMBERG. CAROLINE: WATCHING SHARES OF 23 AND ME REBOUNDING AFTER SEVEN INDEPENDENT BOARD MEMBERS RESIGNED YESTERDAY PROTESTING THE CEOS PLAN TO TAKE THE COMPANY PRIVATE. AND THE DIRECTOR SAID THERE HASN'T BEEN ANY NOTABLE PROGRESS ON A PROPOSAL. IT'S ONLY UP 2% AND IT HAS BEEN UNDER PRESSURE. THIS IS EXTRAORDINARY. IT WAS A SPECIAL COMMITTEE TO
ANALYZE WHETHER OR NOT A DEAL WOULD LOOK GOOD AND CLEARLY THEY ARE VOTING WITH THEIR FEET. >> IT'S AN INTERESTING SITUATION AND THEY ACTUALLY CONTROL THE COMPANY, SHE CONTROLS THE VOTE SO IT'S UP TO HER WHAT HAPPENS TO SPECIAL COMMITTEE DID FORM AND THEY'VE BEEN WAITING FOR A FULLY FINANCE OFFER TO COME IN AND THAT HASN'T HAPPENED YET SO IT SEEMS LIKE THEY ARE FRUSTRATED ON SOME OF THESE BIG SILICON VALLEY NAMES WITH SEQUOIA'S ROLE HAS RESIGNED AND OTHERS PRETTY WE WILL SEE WHAT HAPPENS. BUT AND STILL WANTS TO, P PRIVATE AND REALLY THE BALL IS IN HER COURT BECAUSE SHE HAS CONTROL OF THE SITUATION. >> IT'S $180 MILLION LESS THAN MARKET CAP COMPANY TRADING AT $.35 A SHARE. NOWHERE NEAR AT $17 62 FIVE CENTS PEAK. DOESN'T SEEM THAT HARD.
WHAT WE KNOW ABOUT THE FINANCING PACKAGE. WHOSE CAN BE GETTING INVOLVED IN THE TAKE PRIVATE? >> AT THIS POINT WE DON'T KNOW WHO WOULD BE INVOLVED BUT WE KNOW THAT THEY BID $.40 A SHARE WHICH IS ABOVE WHERE THE STOCK IS TRADING. ALTHOUGH IT IS SORT OF A PENNY STOCK. YOU MIGHT REMEMBER THIS COMPANY
WENT PUBLIC THROUGH A SPAC DEAL AND I DID HAVE HIGH-PROFILE BACKERS LIKE RICHARD BRANSON AND OTHER BIG NAMES BUT AT THAT POINT IT WAS WORTH SEVERAL BILLION AND NOW IT'S JUST A FRACTION OF THAT AND WE WILL SEE, FOR NOW THE SPECIAL COMMITTEE HAS A BANKER WE ARE NOT AWARE OF THE COMPANY ITSELF IS EXPLORING A SALE BUT SHE HAS SAID SHE IS OPEN TO OTHER OFFERS SO IT COULD MAKE SENSE FOR THIS COMPANY AND THE LIMELIGHT OF THE PUBLIC MARKETS TO SORT OF RESET AND POTENTIALLY RESTRUCTURE AND RETURN TO GROWTH. >> THANK YOU VERY MUCH. LET'S GET TO SOME MORE NEWS. KKR AND GOLDMAN BACK HOME RENOVATION STARTUP LIVE SPACE IS GETTING CLOSER TO GOING PUBLIC.
THE PLATFORM CONNECTS CUSTOMERS WITH DESIGNERS FOR HOME MAKEOVERS IN MARKETS LIKE INDIA AND SINGAPORE. IT'S BETTING IT'S FIRST NET INCOME IN THE FIRST QUARTER OF 2025, A LIVE SPACE GETS 85% OF ITS REVENUE FROM THAT INDIA MARKET. CAROLINE: LET'S TALK ABOUT SOMEONE'S PROBABLY EYEING THE IPO MARKET AND THE VENTURE LANDSCAPE. SOMEONE WITH A LOT OF EXPERTISE. CAP -- CO-FOUNDER JUST MADE A RECENT $250 MILLION INVESTMENT IN THE TICKETING MARKETPLACE, AND YOU HAVE SIGNIFICANT EXPERTISE HAVING RUN BIG TECH BUSINESSES YOURSELF READ WHAT YOU THINK THE IPO LANDSCAPE. ARE WE GOING TO REV BACKUP POSTELECTION? >> IT'S A STRANGE ENVIRONMENT WHERE IN ORDER TO GO PUBLIC NOW I THINK THERE'S A BIGGER BURDEN FOR QUALITY AND I THINK THAT THERE'S SO MANY COMPANIES HAVE GOTTEN TO RULE 40.
THEY ARE PROVEN THAT THEY CAN MANAGE CUSTOMERS THAT THERE COMPANY'S THAT ARE BEEN THROUGH SEVERAL NEWEST CYCLES. I THINK YOU WILL SEE A LOT OF COMPANIES RUNNING UP TO AN IPO AND THERE'S A LOT OF INVESTORS THAT ARE LOOKING FOR LIQUIDITY SO THE PRESSURE BETWEEN THE COMPANY'S BEING STRONGER, PROVEN AS WELL AS INVESTORS LOOKING FOR LIQUIDITY I THINK YOU SEE A NUMBER OF IPOS, UP IN THE NEW YEAR. >> ANNUAL REVENUE GROWTH RATE, PROFIT MARGIN BEING 40% SO LOOKING STRONG AND RESILIENT. WHERE THEN DO YOU MAKE YOUR BETS IN THE VERY EARLY STAGES. JUST TALKED ABOUT HOW YOU ARE SIGNING MONEY TO TICK TICK TO BE ABLE TO TAKE ON THE LIKES OF SEATGEEK AND OTHER AREAS TO BUY TICKETS TO REAL LIFE EVENTS, WHERE ELSE LOOKS APPETIZING RIGHT NOW? >> I THINK YOU NEED A PHILOSOPHY AND A THESIS ON WHERE YOU WANT INVESTED. YOU DEFINITELY DON'T WANT TO BE
INVESTING IN WHAT'S HAPPENING IN THE PAST OR INCREMENTAL SOLUTIONS TO LEGACY SYSTEMS, YOU WANT TO BE INTO DIFFICULT HIGH IP HARD PROBLEMS TO SOLVE AND WHEN YOU TAKE A LOOK AT THAT THE AREAS WE THINK ARE SUPER EXCITING IS ANYTHING TO DO WITH AI AND BEING ON THE PLACE OF A EYEWEAR WERE TRYING TO HELP COMPANIES SOLVE BIGGER PROBLEMS THAT ARE NEVER BEEN SOLVED BEFORE OR ADDING MASSIVE VALUE TO PROBLEMS THAT CURRENTLY EXIST BUT DOING IT BETTER, FASTER AND CHEAPER. WE HAVE A HANDFUL IN INVESTMENTS WE'VE DONE ALONG THOSE WAYS, YOU TAKE A LOOK AT THE WHAT WE HAVE IT STARTED AS A LOGS COMPANY AND THEY HAVE PRODUCTS THAT ARE MASSIVE PAYOUTS. THE IDENTITY MANAGEMENT SPACE IF THERE'S ANYTHING YOU WANT TO BE PAYING ATTENTION TO RIGHT NOW IT'S ZERO TRUST AND IDENTITY MANAGEMENT. WHEN YOU LOOK AT OUT SILVER SOLD THAT PROBLEM THEY'VE DONE IN A WAY NOBODY ELSE'S BEEN ABLE TO DO THAT BEFORE. THEY CAN SOLVE MULTIFACTOR AUTHENTICATION SO THE SAME THING THAT IRRITATES YOU PUTTING YOUR PASSWORD AND THEY SEND YOU A TEXT MESSAGE, YOU CAN NEVER DO THAT FOR SERVICE ACCOUNTS OR FOR ON PREMISE SYSTEMS. SILVER FORD HAS
ABSOLUTELY UNIQUE TECHNOLOGY TO BE ABLE TO DO THAT BUT NOBODY ELSE REALLY HAS. SO YOU WANT TO BE THINKING OF THOSE TYPES OF THINGS HOW DO YOU BUILD A BIG COMPANY WHEN YOU START WITH A COMPANY THAT'S JUST GOT ONE PRODUCT. ED: HAVING A FOCUS ON CYBERSECURITY'S IS NOT UNIQUE. WE HAVE LOADS OF PEOPLE SAYING IT'S RIGHT FOR DISRUPTION, BUT IT SEEMS LIKE A CROWDED FIELD TO ME? >> I SEE TWO OR THREE THINGS HAPPENING WITH CYBERSECURITY. EVERYONE'S MOVING TO THIS CONCEPT OF THE WHOLE NOTION IS WE'VE ACTUALLY BEEN PRETTY GOOD AT DETECTING, WE HAVE NOT BEEN GREAT AT RESPONDING. AND WE HAVE 4 MILLION PEOPLE IN THE CYBERSECURITY WORLD RIGHT NOW THAT HAVE EXPERIENCE IN CYBERSECURITY. THERE'S NO WAY WE WILL BE ABLE
TO GET 4 MILLION MORE PEOPLE THERE HIGHLY QUALIFIED IN CYBERSECURITY SO WE'LL HAVE TO COME THROUGH AUTOMATION. I THINK AI WILL PLAY A SIGNIFICANT ROLE IN MAKING THAT HAPPEN. ED: REAL QUICK BECAUSE I CANNOT RESIST, WHAT'S IT LIKE BEING ON A CAP TABLE WITH RORY? >> HE'S AN ABSOLUTE GENTLEMAN AND HE'S A VERY GOOD INVESTOR. IT'S NICE TO HAVE A CELEBRITY LIKE THAT ESPECIALLY A QUALITY PERSON OF HIS NATURE ASSOCIATED WITH THE FIRM. ED: REALLY GOOD TO HAVE YOU ON THE PROGRAM, THANK YOU.
AMONG UP ON BLOOMBERG TECHNOLOGY THE NEW RACE TO THE MOON IS ON. WHAT'S NEXT? THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: IT'S BEEN MORE THAN 50 YEARS SINCE AN ASTRONAUT LAST WALKED ON THE MOON. BUT THIS DECADE COULD SEE A NUMBER OF COUNTRIES ATTEMPT TO SEE HUMANS SENT BACK.
BLOOMBERG'S TOM GIBSON HAS MORE. >> AMERICA PLANS TO SEND FOUR ASTRONAUTS INTO LUNAR ORBIT INCLUDING THE FIRST WOMAN AND FIRST PERSON OF COLOR AS PART OF THE ARTEMIS PROGRAM. THIS WILL SET THE STAGE FOR THE NEXT ARTEMIS MISSION TO HAVE PEOPLE ON THE MOON IN THE NEXT FEW YEARS. BUT WHILE NEIL ARMSTRONG ONLY SPENT A FEW HOURS ON THE MOON THE ARTEMIS ASTRONAUTS WILL BE THERE FOR MUCH LONGER SPENDING AT LEAST SIX DAYS ON THE LUNAR SURFACE. CHINA ALSO HOPE TO HAVE PEOPLE ON THE MOON BY 2030.
AND HAS ACHIEVED A SERIES OF IMPRESSIVE FIRSTS. THE FIRST AND SO FAR ONLY NATION TO LAND ON THE FAR SIDE OF THE MOON IN THE FIRST TO SEND SAMPLES FROM THEIR BACK TO EARTH. >> GOING TO THE FAR SIDE OF THE MOON IS ESPECIALLY HARD OF COURSE. IT NEVER ACTUALLY FACES EARTH, SO COMMUNICATING WITH ANYTHING ON THE FAR SIDE OF THE MOON IS REALLY HARD. >> ALL THIS HAS AMERICA WORRIED. >> I DON'T WANT CHINA TO GET TO THE SOUTH POLE FIRST. WITH HUMANS.
AND THEN SAY THIS IS OURS. STAY OUT. >> BILL NELSON, THE NASA ADMINISTRATOR HAS FREQUENTLY REFERRED TO CHINA'S POLICIES HERE ON EARTH IN PARTICULAR THE SOUTH CHINA SEA WHERE CHINA HAS SAID ALL THESE ISLANDS IN THE SOUTH CHINA SEA BELONG TO US. BILL NELSON HAS SAID IN THE SAME WAY THEY DID THIS GRAB IN THE SOUTH CHINA SEA THERE IS POTENTIAL THEY WOULD TRY TO DO SOMETHING ON THE MOON AND SO WE HAVE TO MAKE SURE TO STOP THEM. CAROLINE: YOU CAN CATCH THE FULL EPISODE AT BLOOMBERG.COM.
LET'S GET BACK TO THE TECH MARKETS BECAUSE TODAY HERE ON EARTH IS FED DECISION DAY. SONALI BASAK, YOU ARE LOOKING ACROSS ASSETS AS YOU DO ON YOUR SHOW DAY IN AND DAY OUT AND WE WANT TO SHINE A LENS ON WHAT'S HAPPENING WITH TECHNOLOGY IN THE IMPLICATION OF THE BULL MARKET. SONALI: LET'S LOOK AT WHAT'S HAPPENED TO THE TWO-YEAR. OVER THE PAST MONTH AND WHAT IT'S MEANT FOR TECHNOLOGY STOCKS. THE TWO-YEAR OVER THE PAST MONTH HAS DRASTICALLY FALLEN IN TERMS OF THE YIELD MOVEMENT HERE MORE THAN 40 BASIS POINTS IF YOU LOOK AT THAT.
YOU'RE DOWN NOW TO 365 WITH THE MARKET EXPECTING THE FED WOULD CUT 50 BASIS POINTS TODAY. YOU HAVE ECONOMISTS MORE IN DISAGREEMENT THERE BUT WITH THE PRICING MOVES LET'S LOOK AT WHAT THE S&P AND NASDAQ HAVE DONE OVER THAT TIMEFRAME AS WELL. THE NASDAQ -- S&P PERFORMING -- OUTPERFORM THE NASDAQ 100 BUT THE S&P 500 RISING MARGINALLY IN THE NASDAQ FLAT TO LOWER. IF YOU FLIP UP THE BOARD ONE MORE TIME BECAUSE THIS IS WHERE YOU SEE THAT MOVE MUCH MORE DISTINCTLY, THE S&P EQUAL WEIGHT INDEX WHICH REACHED A RECORD YESTERDAY IS UP MORE THAN 3% IN THAT TIMEFRAME. THIS IS REALLY PAYING MORE ATTENTION TO THOSE COMPANIES OUTSIDE OF TECH IN A MORE EQUAL WAY WITH THE MAG SEVEN DOWN EVEN WITH THAT YIELD MOVEMENT BEING SO DRASTIC ON THE MOVE LOWER THE CONCERT -- THE SEMICONDUCTOR INDEX DOWN AND ONLY A HANDFUL OF STOCKS IN THE GREEN OVER THAT TIMEFRAME. AT THE BEGINNING OF THE YEAR WHEN PEOPLE GOT THE LOWER DISCOUNT RATE, THAT HAS NOT HAPPENED IN THE PAST MONTH.
SO WHAT YOU NEED IS A NEW NARRATIVE BASED ON EARNINGS AND THE AI PAYOUT AND NOT AS RELATED TO INTEREST RATES AS WE HAD EXPECTED IN THE PAST. ED: I LOOKED UP FROM MY DESK THIS MORNING, MASSIVE TV SCREEN, BLOOMBERG OPEN INTEREST, FOR WORDS, FED DAY IS HERE. HOW PALPABLE IS THE EXCITEMENT, TENSION AND ANXIETY FOR THE INVESTORS YOU HAVE ON YOUR SHOW RETICULAR THOSE FOCUSED ON TECH? SONALI: ON ONE HAND THE AI STORY HAS DOMINATED THE MARKET. YOU FELT THAT SHIFT AWAY FOR A MOMENT THIS MORNING AWAY FROM THAT STORY ABOUT INTEREST RATES AND TOWARD THAT TECH STORY BECAUSE IT'S DRIVING SO MUCH OF THE MARKET. THIS IDEA TAKING THE CHIPS OFF THE TABLE RIGHT NOW THEY COULD BE TAKING THE CHIPS OFFER A LITTLE BIT LONGER BUT THAT DOESN'T TAKE AWAY FROM TODAY. THE IDEA WE ARE ON THE PRECIPICE OF A HISTORIC RATE CUTTING CYCLE 25 OR 50 AT THE END THE DAY COULD CAUSE SOME VOLATILITY BUT THE RATE AND PATH FORWARD IS WHAT REALLY MATTERS THE END OF THE DAY COMPLICATE IT EVEN MORE BY ELECTION IN NOVEMBER. CAROLINE: THANK YOU FOR TALKING US
THROUGH THAT ALL. AS WE EXPECT THAT MOMENTOUS DECISION, WE ARE NOT DOING ALL THAT MUCH ON THE NASDAQ 100. A LITTLE BIT OF ANXIETY ED. ED: IT'S WHAT THE MARKETS CALL TREADING WATER. ANXIETY WE ARE VERY EXCITED. SHOWING AWAY FROM THE FED RECAP
THE PODCAST YOU KNOW WHERE TO FIND THIS ON THE BLOOMBERG PLATFORMS ON APPLE, SPOTIFY AND I HEART. BIG THANKS TO THE TEAM IN NEW YORK CITY.
2024-09-19 17:20
