Trump's VP Pick and Huawei's Shanghai Center | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, "BLOOMBERG TECHNOLOGY THIS IS "BLOOMBERG TECHNOLOGY -- THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, A BREAKDOWN OF A TRUMP'S VC PICK J.D.VANCE AND HIS TIES TO SILICON VALLEY. ED: A $1.4 BILLION CHIP ALREADY SECTOR. CAROLINE:
AND SALESFORCE CUTS FOR OF ITS WORKFORCE. FIRST, LET'S CHECK IN FOR THOSE MARKETS AT THE MOMENT. WE ARE BARRELING TOWARDS ANOTHER RECORD HIGH AT THE S&P 500. SMALL CAPS DOING THE HEAVY LIFTING, RETAIL SALES COMING IN SOLID. EVEN THOUGH IT IS NOT GOOD ENOUGH, WE ARE STILL SEEING RESILIENCE IN THE U.S. CONSUMER.
.6% THE LAST TWO DAYS ON THE S&P 500. GIVEN THAT WE SEE TECH MONEY COMING OFF THE TABLE WHEN IT COMES TO NVIDIA, MORE BROADLY WE ARE MANAGING TO PUSH ONTO NEW RECORD HIGHS. WHAT ARE YOU LOOKING AT IN TERMS OF THE MICRO DATA. ED: OUR TOP STORIES FORMER PRESIDENT TRUMP PICKING J.D. VANCE THE SENATOR AS HIS RUNNING MATE. WE TALKED ABOUT THE TRUMP TRADE THE LAST 24 HOURS. TRUMP MEDIA AND TECHNOLOGY
GROUP, THE PARENT OF TO SOCIAL, IS THE MOST -- OF TRUTH SOCIAL, IS THE MOST DIRECT EXAMPLE OF THAT. BECAUSE JUMP SINCE MARCH, AND WE ARE GIVING SOME OF IT -- BIGGEST JUMP SINCE MARCH, AND WE ARE GIVING SOME OF THE DECK TUESDAY. I FLAGGED IT BECAUSE TRUTH SOCIAL IS HOW TRUMP COMMUNICATED THAT J.D. VANCE WAS HIS PICK. CAROLINE: ALL ABOUT COMMUNICATION AT THE
MOMENT. LET'S GO TO THE COMERICA ON THE GROUND FROM OUR -- COMMUNICATION ON THE GROUND FROM A VERY OWN JOE MATHIEU. THERE WAS A LOT TO BE SAID ABOUT THE PROMINENCE OF THE ROLE OF J.D. VANCE IN SILICON VALLEY, IN VENTURE CAPITAL.
WHAT ARE YOU MAKING OF IT ON THE GROUND? JOE: IT'S PRETTY INTERESTING. OBVIOUSLY, A VENTURE CAPITALIST BEST KNOWN TO MANY OF OUR VIEWERS AND LISTENERS ON BLOOMBERG, BUT HE HAS ALSO BECOME A MUCH LOUDER VOICE WHEN IT COMES TO ECONOMIC POLICY, WHEN IT COMES TO GOVERNMENT SPENDING, WHEN IT COMES TO CRYPTO. IT'S QUITE BE INTERESTING TO SEE HOW HE GETS INTO DONALD TRUMP'S HEAD, BECAUSE DONALD TRUMP IS NOT KNOWN FOR TAKING A LOT OF ADVICE, IN THIS CASE FROM A RUNNING MATE.
WE SAW THESE TWO TOGETHER IN THE CONVENTION HALL LAST NIGHT AND IT WAS ABOUT DONALD TRUMP. J.D. VANCE WAS AT HIS SIDE, SMILING, WAVING, A CELEBRATION IN MILWAUKEE. THIS IS DONALD TRUMP'S CONVENTION, THIS IS DONALD TRUMP'S -- ED: GOING TO JUMP IN BECAUSE I THINK -- SORRY TO JUMP IN, JOE, I THINK WE LOST YOUR MIC FO SECONDR A-- FOR A SECOND. J.D.
VANCE HAS ESTABLISHED VIEWS, FOR EXAMPLE IN ANTITRUST, WHERE THE CONSERVATIVE MOVEMENT MIGHT BE MORE SPLIT. YOU MENTIONED ALL THE FOCUS WAS ON TRUMP. BROADLY, HOW DID THE PARTY REACTED TO J.D. VANCE VS. THE OTHER NAMES THAT HAVE BEEN TOUTED? JOE: VERY WELL RECEIVED.
THAT IS GOING TO BE THE DEAL IN A PLACE HOSTING THE REPUBLICAN NATIONAL CONVENTION. JUST SPOKE WITH SENATOR BILL HAGGERTY A SHORT TIME AGO, REPUBLICAN FROM TENNESSEE, WHO IS VERY PRO-CRYPTO BUT ALSO VERY OLD-LINE REPUBLICAN. HE THINKS IT IS A GREAT CHOICE. SPOKE WITH A NUMBER OF OFFICIALS IN MILWAUKEE WHO SEEM TO BE EMBRACING THIS IDEA.
MOST PEOPLE WERE SURPRISED TO NOT BE SURPRISED. WE'VE BEEN TALKING BY J.D. VANCE ON THE SHORTLIST FOR WEEKS AND WEEKS, AND A LOT OF FOLKS GOT DONALD TRUMP MIGHT MOVE IN A DIFFERENT DIRECTION. IT IS AN INTERESTING AND POTENTIALLY DISCIPLINED MOVE. IT TELLS US ABOUT THE FUTURE OF THE REPUBLICAN PARTY. J.D. VANCE IS 39 YEARS OLD AND WILL BE THE HEIR APPARENT OF THE MAGA MOVEMENT. ED: J.D.
VANCE SPOKE TO FOX YESTERDAY AND TALKED ABOUT CHINA. SEN. VANCE: I THINK WHAT PRESIDENT IS PROMISED TO DO IS GO IN THERE AND NEGOTIATE WITH THE RUSSIANS AND UKRAINIANS AND BRING THIS THING TO A RAPID CLOSE SO AMERICA CAN FOCUS ON THE REAL ISSUE, WHICH IS CHINA. THAT IS THE BIGGEST THREAT TO OUR COUNTRY AND WE ARE COMPLETELY DISTRACTED FROM IT. ED: BOTH PRESIDENTIAL CANDIDATES WANT TO BE SEEN AS TOUGH ON CHINA. TRUMP PROMISED TO HIKE TARIFFS
ON CHINA CUT THE BOARD IF ELECTED. PRESIDENT BIDEN HAS BOOSTED LEVIES ON CHINESE ELECTRIC VEHICLES. JOINING US IS FORMER REPUBLICAN CONGRESSMAN DENVER RIGGLEMAN, WHO SERVED AS AN AIR FORCE INTELLIGENCE OFFICER. HE IS THE FOUNDER OF A SECURITY FIRM. LET'S START WITH YOUR REACTION TO KATIE VANCE AS TRUMP -- J.D.
VANCE AS TRUMP'S PICK AS RUNNING MATE AND POTENTIAL VICE PRESIDENT. DENVER: "FIRST IT'S FUNNY, I WAS LISTENING TO YOU, IT WASN'T A SURPRISE TO ME. THIS IS VERY, VERY GOOD FOR THE DEMOCRATS.
HIS VIEWS ON WOMEN, WOMEN VOTERS ARE GOING TO CARRY THIS. THEY WILL ATTACK J.D. VANCE ON MULTIPLE POLICY SITUATIONS WHERE HE HAS FLIPPED. THEY WILL ATTACK HIM ON WHAT HE
SAID ABOUT TRUMP BEFORE. WHAT THIS REALLY DOES FOR THE DEMOCRATS IS I THINK THEY ARE GOING TO LOOK AT HIS ISSUES ON WOMEN AND I THINK IT HELPS THE DEMOCRATIC TICKET. I WASN'T SURPRISED, BUT I DID THINK HE MIGHT GO ANOTHER ROUTE, MAYBE A NIKKI HALEY ROUTE OR A FEMALE VICE PRESIDENT. WITH THE J.D. VANCE IT HELPS THE DEMOCRATS BASED ON WHAT HE SAID ABOUT WOMEN'S ISSUES AND THINGS OF THAT NATURE. CAROLINE: YOU AN AUTHOR HERSELF, YOU
CO-AUTHORED A BOOK ALL ABOUT JANUARY 6. YOU ARE ALSO SOMEONE WHO FEELS THAT YOU WERE JETTISONED FROM YOUR OWN PARTY FOR HAVING OFFICIATED A SAME-SEX MARRIAGE. YOU HAVE AN INTERESTING RELATIONSHIP WITH THE REPUBLICANS, AND PUT THAT OUT TO OUR AUDIENCE. I WANT TO MAKE USE OF YOUR EXPERTISE WHEN IT COMES TO CYBER, INTELLIGENCE, ULTIMATELY THE RISKS THAT WE HEARD COMING FROM J.D. VANCE ABOUT CHINA AND WHETHER YOU THINK THAT IS SOMETHING TO BE STANDING UPON, WHETHER THAT IS NOTHING YOU AGREE WITH AS A KEY CONCERN, AND WHETHER IT WILL BE TACKLED BY THE REPUBLICANS. DENVER:
REGARDLESS OF J.D. VANCE'S VIEWS ON JANUARY 6 AS AN ELECTION DENIER, CHINA IS A BIPARTISAN -- BIPARTISAN SUPPORT TO LOOK AT CHINA AS THEY ARE . WHEN YOU ARE TALKING ABOUT THEIR AI DEVELOPMENT OR TECHNICAL DEVELOP, WE HAVE TO BE VERY CAREFUL ABOUT THE REGULATORY STRUCTURE WHEN WE TALK ABOUT AI DEVELOPING AND TECH DEVELOPMENT AS FAR AS CHINA IS CONCERNED. J.D. IN THE DE-- J.D. AND THE DEMS, BOTH SIDES HAVE VALID CONCERNS ABOUT CHINA. I WROTE AN OP-ED ABOUT CHINESE
DRONES AND BUILDINGS THAT USE THEM AND LAW ENFORCEMENT AGENCIES THAT USE THEM AND HOW THEY CAN BE USED AS COLLECTION SOURCES. RIGHT NOW, I WAS ON THE CHINA TASK FORCE IN CONGRESS, I BELIEVE CHINA IS THE BIPARTISAN ISSUE WHERE EVERYBODY CAN GEL, TOGETHER AND REGARD THE SURPASSED USER THINGS LIKE THAT, THE SPECIFIC CHINA ISSUE IS SOMETHING WE HAVE TO WORRY ABOUT. ED: COGNIZANT, O -- CONGRESSMAN, ONE INTERESTING POINT OUR CORRESPONDENT RAISED IN MILWAUKEE IS HOW MUCH PRESIDENT TRUMP WILL OR WILL NOT LISTEN TO HIS VICE PRESIDENT PICK. ONE POLICY AREA IS BIG TECH, ANTITRUST. THIS IS "BLOOMBERG TECHNOLOGY," AFTER ALL. MR. VANCE'S POSITION HAS BEEN
CLEAR, HE THINKS BIG TECH SHOULD BE BROKEN UP, THAT THERE IS TOO MUCH POWER AND HE IS ALIGNED WITH THE FTC, AND OTHER PARTS OF THE CONSERVATIVE MOVEMENT WANT TO SEE SHRUNK REGULATORS AND SHRUNK AGENCIES COULD HOW DO YOU THINK THAT WILL PLAY OUT? DENVER: I DON'T THINK IT WILL BE ONE OF THE BIGGER ISSUES GOING INTO THE ELECTION. I THINK AFTERWARDS IF THE TRUMP ADMINISTRATION IS TO WIN, IT WILL BE A BIT OF A WAR ON ANTITRUST WITH BIG TECH. I'VE HAD MY OWN ISSUES WITH BIG TECH, ESPECIALLY ALGORITHMICALLY . OUR COMPANY LOOKS AT THIS, SOCIAL PLATFORMS AND DISINFORMATION AND AI. WHEN YOU'RE TALKING ABOUT
ANTITRUST AND TACHY, THAT IS GOING TO BE ONE OF THE BIGGEST THINGS WE TALKED ABOUT AFTER THE ELECTION ON HOW WE EITHER YOU LIKE, -- EITHER REGULATE, IF WE BREAK THEM UP, OR LOOK AT ALGORITHMIC SOLUTIONS WERE OTHERWISE TO SEE WHAT IS HAPPENING WITH BIG TECH AND HOW THEIR MANIPULATIVE INFORMATION. I DON'T KNOW IF THE ANTITRUST STUFF IS GOING TO GO A LONG WAY. THERE IS GOING TO BE A RECKONING WHEN IT COMES TO HOW ALGORITHMS ARE USED AND HOW PEOPLE ARE TARGETED AND DISINFORMATION ON BIG TECH PLATFORMS. THAT IS MY OPINION ON IT. IT'S A VERY COMPLEX TOPIC, AS
YOU BOTH KNOW. I DO BELIEVE THAT IS GOING TO BE ONE OF THE LESSER THINGS THAT TALK ABOUT DURING THE CAMPAIGN. WHOEVER WINS, I THINK THERE'S GOING TO BE A RECKONING WITH BIG TECH ON HOW WE LOOK AT WHAT THEY ARE DOING ON THOSE PLATFORMS. CAROLINE: DENVER, YOU HAVE BOUGHT US A LOT OF COMPLEXITY, MORE BROADLY TO YOUR VIEWS OF WHAT MIGHT HINDER OR BE A POSITIVE FORCE FOR J.D. VANCE. AS A FOUNDER YOURSELF, IS IT POSITIVE THAT HE IS SOMEONE WHO UNDERSTANDS VENTURE CAPITAL AND INVESTING? DENVER: YOU KNOW, ACTUALLY, HE DOESN'T MAKE ME CONFIDENT AT ALL. WHEN YOU THINK ABOUT WHERE HE HAS COME FROM, YES, HE'S 39, HE WROTE A BOOK. I AM A FOUNDER, I'M LOOKING AT
VENTURE CAPITAL, I DO HAVE INVESTORS. J.D. VANCE ON THE BUSINESS SIDE DOES NOT MAKE ME CONFIDENT AT ALL. I DON'T LIKE YOU KNOWS WHAT HE'S TALKING ABOUT IN MOST RESPECTS -- I DON'T THINK HE KNOWS WHAT HE'S TALKING BUT IN MOST RESPECTS. I HATE TO BE THAT BLUNT, BUT YOU LOOK AT THE STAFF AROUND THE PRESIDENT, THE PEOPLE WHO DO THE POLICYMAKING F J.D. VANCE IS THERE TO GET VOTES MAY BE IN RURAL AREAS. I DON'T THINK HE IS THERE FOR BUSINESS OR TECHNICAL EXPERTISE. HE IS THERE BECAUSE HE IS
PRESENTING A VISION OF WHAT MAGA POLICIES LOOK LIKE IN THE FUTURE AND IT DOESN'T HAVE TO DO WITH HIS BUSINESS ACUMEN AT ALL. SORRY IF I'M BLUNT ABOUT IT. CAROLINE: DENVER, WE LIKE BLUNT. DENVER RIGGLEMAN, A FORMER CONGRESSMAN. ED, WHATEVER GOT COMING UP? -- WHAT HAVE WE GOT COMING UP? ED: WHILE WEIGHT IS SET TO BREAK NEW -- WHILE WEIGHT IS SAID TO BREAK NEW GROUND. -- HUAWEI IS SUCH A BREAK NEW GROUNDS. AN EVENTBRITE, A TERMINAL HEADLINE. CAROLINE:
WE WERE JUST DISCUSSING CHINA. TIKTOK HAS A NEW PARTNERSHIP WITH EVENTBRITE. USERS CAN ADD EVENTBRITE TO TIKTOK VIDEOS. UP 19%, BUT A LOT OF REGULATORY RISKS. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TIME FOR "TALKING TECH."
MAGIC LEAP IS GETTING A THIRD ACTIVIST INVESTOR. STAR WHAT HAS BOUGHT A 6.6% STAKE IN THE ONLINE DATA COMPANY AND LOOKS TO MAKE A PUSH FOR A SALE.
MATCH'S LARGEST APP, TINDER, HAS SEEN ITS PINK CUSTOMER BASE SHRINK FOR SIX STRAIGHT QUARTERS. MICROSOFT FACES A U.K. INVESTIGATION. THE TECH CHINA IS SAID TO UNDERGO A FULL-BLOWN ANTITRUST PROBE, WITH EMPHASIS ON THE HIRING OF FORMER EMPLOYEES FROM THE START APPEARED THERE IS A SEPTEMBER 11 DEADLINE ON WHETHER HE WILL INVESTIGATE -- WHETHER IT WILL ESCALATE THE INVESTIGATION. A NEW DEVELOPMENT CENTER WILL HOUSE 2000 PERSONNEL AND ENCOMPASS 1.6 MILLION SQUARE METERS. HUAWEI IS SAID TO HAVE SPENT
$1.4 BILLION IN INVESTMENT COSTS. ED: LET'S STAY WITH THAT STORY OF HUAWEI AND BRING IN IAN KING IN SAN FRANCISCO. THOSE SEEM LIKE BIG NUMBERS, BUT IF THERE IS ONE THING YOU TOLD OUR AUDIENCE IN RECENT YEARS, IS THAT DEVELOPMENT OF NEW SEMI CONDUCTORS AND THEN THE MANUFACTURING OF THEM TAKES A VERY LONG TIME. WHAT ARE THE BASICS IN THIS CASE WITH HUAWEI? IAN: IT IS NOT LIKE THEY ARE BEGINNING FROM SCRATCH. THIS IS SOMETHING WE SHOULD PAY ATTENTION TO IS A SYMBOLIC BUT ALSO POTENTIAL FOR WHAT HAPPENS IN THE FUTURE. THERE AGAIN MORE PEOPLE, SIGNIFICANT EFFORT ON THE SCALE OF OTHER COMPANIES. IT TAKES YEARS AND YEARS.
TWO OR THREE YEARS TO DESIGN ONE. THEN YOU NEED A SECOND GENERATION. NOTHING TO BE PANICKING ABOUT THIS YEAR OR NEXT YEAR. A SYMBOL OF A SERIOUS EFFORT UNDERWAY. CAROLINE: WE ARE ANTICIPATING 70, WHICH IS NEW FLAGSHIP SMARTPHONES.
WHEN WE GET OUR HANDS ON IT, HOW MUCH DO WE UNDERSTAND THE TECHNOLOGY WE ARE USING IS U.S.-DEPENDENT? MUCH CAN BE CUT THAT OFF -- HOW MUCH CAN WE CUT THAT OFF? IAN: THAT'S A VERY GOOD QUESTION. THERE ARE A LOT OF OPINIONS ABOUT THE CHIP. SOME PEOPLE SAY THAT THIS JUST PROVES THAT HUAWEI HAS WALKED AROUND THE EFFORTS TO STOP IT. OTHERS ARE SAYING NO NO, THIS IS A HUGE JOB, THIS REALLY ISN'T THAT IMPORTANT, THIS DOESN'T MEAN ANYTHING. THEY WON'T BE ABLE TO GET BETTER.
I THINK THEY ARE ABSOLUTELY RIGHT TO BE POINTING OUT WHEN THAT NEW PHONE HITS THE MARKET THERE WILL BE A LOT OF PEOPLE GETTING THEIR HANDS ON IT IN FIRST THING THEY WILL DO IS SAW IT HEAVEN LOOK AT WHAT IS INSIDE. [LAUGHTER] CAROLINE: NOT EXACTLY THE WAY THAT HUAWEI ONCE THE FUNDS TO BE USED. I -- ONCE THE P-- WANTS THE PHONES TO BE USED.
LET'S LOOK AT ANOTHER KEY STORY WITH SOFTWARE GIANT SALESFORCE. THE COMPANY CUT JOBS THIS MONTH IN AN EFFORT TO STREAMLINE OPERATIONS AND CONTROL COSTS. THEY'D ALREADY BEEN DOING A LOT OF LAYOFFS. >> THE ENTIRE TECH INDUSTRY OBVIOUSLY HAS SHED THOUSANDS UPON THOUSANDS OF JOBS OVER THE LAST TWOISH YEARS AT THIS POINT.
THERE HAS BEEN THIS QUESTION OF IS IT OVER, ARE WE BACK TO A NORMAL PERIOD. WHAT SALESFORCE AND OTHER COMPANIES HAVE SHOWN US IS THIS IS PART OF THE GAME. WHAT HAPPENED LAST WEEK, WE SAW SALESFORCE AND A FEW OF THESE COMPANIES MAKE THESE CUTS. GOING FORWARD WE WILL SEE TECH
COMPANIES NO LONGER DO THIS THING WITH A HEADCOUNT IS TO THE RIGHT INDEFINITELY. THEY WILL CONTINUALLY CUT OVER HERE, HIRE OVER HERE, AND MONITOR THOSE EXPENSES. ED: BRODY, THIS IS 300 ROLES YOU ARE REPORTING BEING CUT. I JUMP INTO MY TERMINAL, QUICKEST WAY TO CHECK WORKFORCE, AND I'M SEEING 72,000. AS YOU POINT OUT, A BROADER EFFORT -- WHEN SENTIMENT OF SALESFORCE STAFF ARE NOW? A LOT OF THEM WATCH THIS PROGRAM. BRODY: SENTIMENT IS THAT IDEA OF FOR A LONG TIME LARGE COMPANIES -- THERE WAS SALESFORCE, INTO IT, WHATEVER -- IT WAS MORE TOLERANCE FOR, HEY, WE ARE GOING TO HAVE MORE DIVISIONS THAT ARE SPECULATIVE BETS.
THERE IS THE RUTHLESS RE PRIVATIZATION GOING ON. INTUIT CUT 1800 PEOPLE A WEEK BEFORE, AND THEY INTERVIEWED -- THEY SAID THIS IS NOT A NET HEAD COUNT REDUCTION. WE ARE GOING TO HIRE PEOPLE DOING MORE RELEVANT WORK FOR US. IT'S THAT SENSE OF IF YOU ARE NOT PRODUCING, WHETHER YOU ARE A SALESPERSON OR SOME OTHER ROLE, YOU MIGHT BE AT RISK. ED: BRODY FORWARD WITH ANOTHER PIECE OF EXCELLENT REPORTING, THANK YOU VERY MUCH. COMING UP, WE WILL BE JOINED BY
THE CEO OF MOMENTUM, IS TO BREAK DOWN -- MOMENTUM COMMERCE TO BREAK DOWN REAL-TIME DATA FROM AMAZON'S PRIME DAY. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: AMAZON'S TWO-DAY SUMMER CELL IS UNDERWAY WITH REAL-TIME DATA SUGGESTING THAT SALES ARE RISING 13% THE FIRST SIX HOURS OF THE EVENT, COMPARED TO THE SAME PERIOD LAST YEAR. THAT DATA COMING FROM MOMENTUM COMMERCE, WHICH MANAGES 50 BRANDS IN A FINDING OF CATEGORY'S. CEO JOHN SHEA IS WITH US. YOU HAVE SUCH A BREATH OF THINGS BEING DEMANDED BY THE CONSUMER. IS IT EVERYTHING? JOHN: THANK YOU SO MUCH FOR HAVING ME.
EVERYONE SHOULD GET THEIR WALLETS BECAUSE OF HIS GREAT DEALS JUST BECAUSE THERE ARE GREAT DEALS ON AMAZON TODAY. THAT IS ONE TREND WE ARE SEEING SO FAR IN THE EARLY INNINGS OF PRIME DAY TODAY, WHERE HISTORICALLY PRIME DAY HAS BEEN GREAT PARTICIPATION FROM CONSUMER ELECTRONICS, GADGET BRANDS, BACK TO SCHOOL OFFERINGS, TRYING TO PULL THE DEMAND FORWARD. AND A LOT OF AMAZON'S 'OWN DEVICES. THIS YEAR WE ARE SEEING GREAT OFFERS FROM JEWELRY BRANDS, FASHION BRANDS, HOME AND KITCHEN BRANDS. BEAUTY BRANDS ARE PARTICIPATING WIDELY. IT REALLY IS THE EVERYTHING
STORE. WITH CRIME DAY WE ARE SEEING GUILT -- PRIME DAYS WE ARE SEEING GUILDS ACROSS THE BOARD. ED: AMAZON HAS JUMPED AROUND A BIT ON THE TIMING OF PRIME DAY. IS THERE ANY SORT OF SEASONALITY FACTOR THAT MOTIVATES CONSUMERS TO GO OUT AND SPEND EARLY AND CATCH DEALS IN THE SUMMER RATHER THAN LATER LIKE IN OCTOBER? JOHN: I THINK A FEW YEARS BACK AMAZON SHIFTED TO OCTOBER FOR THE FIRST TIME AS A FUNCTION OF COVID AND DISRUPTION FROM COVID. AND THAT IT HAS DONE TWO PRIME
DAYS THE TWO YEARS. WHAT WE SEE IN THE DATE IS THAT JULY, SUMMER PRIME DAY, HAS BEEN SEARED INTO THE MINDS OF THE U.S. CONSUMER IN PARTICULAR, AND WE ARE SEEING THE ENTIRE RETAIL INDUSTRY FOLLOW SUIT. IF YOU WANDER AROUND THE WEB, YOU WILL SEE CALLBACKS TO PRIME DAY OFFERINGS, AND YOU SEE TARGET AND WALMART AND OTHERS RUNNING SIMILAR EVENTS TIMED AROUND AMAZON.
THIS IS THE 10TH PRIME DAY, AND IT CERTAINLY HAS BECOME PART OF THE CULTURE THIS YEAR, WHICH IS EXCITING. ED: WHAT IS DIFFERENT FOR AMAZON NOW, I THINK, IS THE INFLUENCE AND COMPETITION FROM SOME OF THE CHINESE PLAYERS. ALIEXPRESS WENT SO BIG ON THE EURO AND WAS ON FOX SPORTS IN THE UNITED STATES. WE SAW 30% GROWTH IN THE FIRST SIX HOURS. WHAT DO YOU SEE IN THE MARKET MORE BROADLY THIS TIME WINDOW -- PRIME WINDOW? JOHN: KEEP IN MIND A NONTRIVIAL PERCENTAGE OF GOODS SOLD ON AMAZON ARE FROM FACTORY BRANDS IN CHINA, COMING DIRECT VIA THE AMAZON MARKETPLACE. AMAZON HAS DESIGNED TO COMPETE
MORE DIRECTLY WITH THE DISCOUNT SECTION THAT IS GOING TO BE ADDED TO THE SITE. THERE DEFINITELY IS COMPETITION IN THAT AREA. BUT NONE OF THOSE PLAYERS CAN COMPETE WITH AMAZON ON LOGISTICS AND DISTRIBUTION. I BOUGHT SOME LEGOS FOR MY KIDS THIS MORNING ON AMAZON, AND THEY ARRIVE TOMORROW.
AND THAT PREMIUM CONVENIENCE IS CHALLENGING FOR ALIEXPRESS, SINCE IT'S A DIFFERENT PROPOSITION THERE. CAROLINE: DO THAT IN THE U.K. AND IT ARRIVED THE SAME DAY, WHICH IS PHENOMENAL. YOU ARE VYING FOR YOUR CHILDREN.
WE SEE MORE BROADLY THE MACRO PICTURE, RETAIL SALES LOOKING RESILIENT. EVERY TIME I OPEN TIKTOK I GOT AN AD FOR THE PRIME DAY AND IT IS MEGAN THEE STALLION. YOU TALK ABOUT CULTURAL MOMENT. HOW MUCH IS GEN Z DRIVING MONEY?
JOHN: HISTORICALLY IT HAS BEEN ACROSS THE BOARD. IT HAS NOT BEEN AS STRONG WITH GEN Z AND YOUNGER DEMOS. THAT IS PART OF THE REASON WHY AMAZON SHOWS MEGAN THEE-- CHOSE MEGAN THEE STALLION TO PROMOTE THE EVENT.
THEY ALSO DID GREAT -- I SADLY GET AN AMAZON PACKAGE AT MY HOUSE EVERY DAY AND THE PACKING TAPE OVER THE LAST MONTH HAS BEEN CHEEKY, PROMOTIONS,, GETTING EVERYBODY EXCITED ABOUT PRIME DAY. THE LEAD BEEN TERRIFIC.-- LEAD-IN HAS BEEN TERRIFIC. WE ARE SEEING DEMOGRAPHICS ACROSS LEVERAGE AMAZON BECAUSE IT IS SO CONVENIENT.
BEAUTY BRANDS ARE TARGETING A YOUNGER DEMOGRAPHIC AND THEY ARE PARTICIPATING PRETTY AGGRESSIVELY IN PRIME DAY THIS YEAR. ONE OF OUR CLIENTS HAS INCREDIBLE DISCOUNTS AVAILABLE TODAY. SEEING A LOT OF DIFFERENT OFFERINGS. THAT IS THE PIECE THAT'S MOST INTERESTING THIS YEAR. OUR DATA SUGGESTS 13% YEAR-OVER-YEAR GROWTH FROM 10:00 A.M. EASTERN, GENERALLY PEAK SHOPPING FOR PRIME DAY IS BETWEEN TIMECLOCK AND -- IS BETWEEN 10:00 AND 1:00 P.M. EASTERN.
40 MILLION TO 50 MILLION ITEMS SOLD IN TODAY'S, CONSUMERS WILL SAVE $30 BILLION, AND THE DISTRIBUTION WILL BE ACROSS DIFFERENT CATEGORIES, APPEALING TO DIFFERENT DEMOGRAPHICS. IT'S THE EVERYTHING STORE AND THE EVERYTHING SALE. PEOPLE ARE EXCITED. CAROLINE: JOHN SHEA, APPRECIATE THE TIME. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK.
ED: THE NASDAQ 100 IS BASICALLY FLAT. SOME LAGGARDS ARE BIGGER TECH COMPANIES, MICROSOFT, META, CHIPMAKERS AS WELL SELLING FOR WHATEVER REASON. WE TALK ABOUT THE TRUMP TRADE. WE HAVE THE BIG NEWS ITEM, THAT
J.D. VANCE IS TRUMP'S VP PICK. THE TWO I PICKED OUT OUR TRUMP MEDIA AND TECHNOLOGY GROUP THE PARENT OF TRUTH SOCIAL DOWN ALMOST 10% ON THE SESSION. JUMPED MORE THAN 30% YESTERDAY. IT'S THE MOST DIRECT VERSION OF THE TRUMP TRADE.
MANY USE THE STOCK AS A REFLECTION A PROXY OF HOW THEY ASSESS THE ODDS OF EITHER PRESIDENTIAL CANDIDATES FORTUNES. FORMER PRESIDENT TRUMP USED TRUTH IS SOCIAL TO ANNOUNCE J.D. VANCE IN THE FIRST INSTANCE. TESLA SOFTWARE A FEW TENTHS OF A PERCENT. IT HAS BEEN BUOYANT. ELON MUSK CAME OUT SO QUICKLY NOT JUST IN SUPPORT OF PRESIDENT TRUMP FOLLOWING THE ASSASSINATION ATTEMPT OVER THE WEEKEND BUT ALSO OF A J.D. VANCE.
>> MAJOR SILICON VALLEY INVESTORS THE CHOICE OF THE OHIO SENATOR AND VENTURE CAPITALIST AS A RUNNING MATE SEEM TO BE CELEBRATING IT. THE MOVE PUTS THE CENTER STAGE -- THE TECH INDUSTRY'S CENTER STAGE. SOME MEMBERS COMING OUT SAYING WE HAVE A FORMER TECH VC IN THE WHITE HOUSE. JOINING US IS BLOOMBERG'S MUCH
EFFORT. NOT THE ONLY POST OUT THERE. ELON MUSK SINGH TODAY TRUMP VANCE RESOUNDS WITH VICTORY. WHAT DO YOU MAKE OF THE TITLE VENTURE CAPITAL? >> WE ARE SEEING CHAMPAGNE CORKS POPPING IN SO-CALLED A LITTLE TECH FEELING LIKE WE HAVE BEEN SEEN, WE ARE HERE AND IT WILL HAVE A SEAT AT THE TABLE. THEY HAVE FELT FOR MANY YEARS THEY HAVE TAKEN A BACKSEAT TO LARGER TECH COMPANIES, TO THEIR LARGER BRETHREN IN THE FORM OF THE MAJOR TECH COMPANIES THAT WE HAVE SPENT SO MUCH TIME TALKING ABOUT. GOOGLE, MICROSOFT, APPLE AND SO FORTH. THE ONES THEY FEEL HAVE TAKEN ADVANTAGE OF THEM IN SOME WAYS. THIS CHOICE OF J.D.
VANCE BY DONALD TRUMP REALLY SENDS A SIGNAL TO THE GROUP OF INVESTORS IN SILICON VALLEY THAT HAVE ALSO BEEN SUPPORTING DONALD TRUMP IN INCREASING NUMBERS TOO LIKE DAVID SACHS THAT SPOKE AT THE CONVENTION LAST NIGHT. ED: MANY OR SOME VENTURE CAPITALISTS ARE SUPPORTING J.D. VANCE'S APPOINTMENT, BUT NOT ALL.
I WOULD MAKE THAT POINT TO THAT WAS RAISED TO ME ON SOCIAL MEDIA. GIVE US SOME BACK STORY. WE TAKE FOR GRANTED ON BLOOMBERG TECHNOLOGY WE KNOW QUITE A LOT ON J.D. VANCE. WE HAVE COVERED PETER THIEL BACKING HIM FOR SOME TIME. MANY IN THE AUDIENCE MIGHT BE ASKING, WE DON'T GET THE POINT HERE. WHO IS HE? WHAT IS HE ABOUT? MIKE: WHAT THEY MIGHT BE SEEING IN J.D.
VANCE IS SOMEBODY THAT'S A LOT MORE THAN A VENTURE CAPITALIST. HE HAS EXPRESSED SKEPTICISM ABOUT THE U.S. SUPPORT FOR UKRAINE AND ITS EFFORTS TO REPEL THE RUSSIAN INVASION. PEOPLE AREN'T JUST A SINGLE ISSUE VOTERS. THEY AREN'T THINKING THAT BECAUSE HE IS FROM THE VENTURE MILL YOU ARE THEREFORE MUST SUPPORT HIM.
THEY WILL LOOK AT OTHER POSITIONS HE HAS TAKEN OVER THE YEARS INCLUDING ON THAT AS THEY MAKE THEIR CHOICES AND ARE TRYING TO DECIDE. ONE INTERESTING THING ABOUT J.D. VANCE IS HOW HE HAS ALIGNED AGAINST WHAT HE CALLS A BIG TECH OLIGARCHY. HE HAS GONE SO FAR AS TO EXPRESS PRAISE, WHERE PRAISE, FOR A BIDEN ADMINISTRATION OFFICIAL, FTC CHAIR LENA CON WHO HAS BEEN PURSUING COMPETITION ENFORCEMENT CASES AGAINST BIG TECH COMPANIES. >> WE WILL GET TO THE ANTITRUST POSITION IN POLICY. MIKE SHEPARD, THANK YOU. LET'S CONTINUE THE CONVERSATION ON J.D. VANCE AND BRING IN A FORMER
COLLEAGUE OF HIS, CHRISTER MCCULLOUGH, A FORMER MANAGING DIRECTOR AT A PETER THIEL BACKED FUND WHERE SHE WORKED WITH VANS. NOW SHE IS A MANAGING PARTNER AT A LOVE VC. IN SIMILAR QUESTION TO MIKE. GIVE US THE DETAILS OF YOUR TIME WORKING ALONGSIDE J.D. VANCE AND WHAT YOU LEARNED ABOUT HIM. WE GOT YOU ON THE SHOW BECAUSE YOU ARE QUOTED IN THE BLOOMBERG STORY OVERNIGHT WE WERE JUST DISCUSSING WITH MICHAEL.
>> THANK YOU. I APPRECIATE THE OPPORTUNITY TO BE HERE. I HAD A FANTASTIC EXPERIENCE WITH JD. I WORKED WITH HIM FOR ABOUT A
YEAR WHEN HE WAS STARTING OUT IN SILICON VALLEY, STARTING OUT AS A VENTURE CAPITALIST AND HE WAS FANTASTIC TO WORK WITH. EVERYBODY KNOWS HOW INTELLIGENT HE IS. ONE THING THAT SHONE THROUGH IN THE EARLY DAYS WORKING WITH HIM ONE-ON-ONE SITTING DOWN WITH FOUNDERS, LISTENING TO THEIR STORIES, EVALUATING DEALS, WAS HOW SMART AND HARD-WORKING HE WAS AND CONTINUES TO BE. YOU CANNOT BE A POLYMATH AND GET UP TO SPEED ON A LOT OF DIFFERENT INDUSTRIES UNLESS YOU ARE BOTH SMART AND WILLING TO PUT IN TIME AT WORK. I FOUND IN HIM AND EAGERLY, UTTERLY WITHOUT EGO SMART, HARD-WORKING VERY FUN GUY WHOSE VALUES WERE VERY CENTERED. THERE HAS BEEN A LOT OF TALK ABOUT HOW J.D.
VANCE IS A SILICON VALLEY CANDIDATE. ON THE ONE HAND THAT'S TRUE. HE WILL BE GOOD FOR SICKLE LOOKING -- FOR SILICON VALLEY IN THE COUNTRY BECAUSE HE IS PROGROWTH, PRO-INNOVATION" ELIMINATING REGULATIONS THAT STRANGLE INDUSTRY UNDERGROWTH. ED: OUR EDITORS WERE AT PAINS THIS MORNING TO POINT OUT THERE IS A DIFFERENCE BETWEEN AN ASSOCIATION WITH THE VENTURE CAPITAL AND THE TECHNOLOGY INDUSTRY AT LARGE. HIS POSITION ON BIG TECH IS
VERY CLEAR. HE IS IN FAVOR OF BREAKING UP BIG TECH AND INCREASED OVERSIGHT BY -- WITH THE FTC AND THAT MIGHT BE AT ODDS WITH THE REST OF THE REPUBLICAN BASE. AS A VENTURE CAPITALIST WHAT DO YOU MAKE OF THAT? CRYSTAL: I CAN SAY UNEQUIVOCALLY THAT PREDATORY BEHAVIOR ON THE PART OF LARGE FIRMS WITH MARKET POWER IS BAD FOR THE ECONOMY. IN PARTICULAR, WHEN THE COMPANY CONTROL A LOT OF THE SPEECH WE SEE AND ACCESS TO INFORMATION. THAT'S BAD FOR DEMOCRACY.
AS A FORMER ANTITRUST LAWYER, AS A VC COME AS SOMEBODY THAT CARES ABOUT DEMOCRACY AND FREEDOM OF SPEECH I UNEQUIVOCALLY AGREE WITH JD ON HIS SKEPTICISM AND CONCERN WITH SOME OF THE LARGEST TECHNOLOGY COMPANIES IN OUR ECONOMY. CAROLINE: DO YOU THINK THAT J.D. VANCE HIMSELF WOULD BE CRITICAL OF HOW WE ARE GOING BERSERK THAT THERE IS A VC IN THE WHITE HOUSE? CRYSTAL: I'M SO SORRY. I DID NOT COMPLETELY HEAR YOU. ED: WHAT DO YOU THINK J.D. VANCE MAKES OF ALL THE MEDIA COVERAGE THAT HE IS A VENTURE CAPITALIST OR FORMER VC AND WILL NOW POTENTIALLY BE IN THE ADMINISTRATION? CRYSTAL: JD IS AN EXTREMELY HUMBLE GUY. WHEN HIS BOOK CAME OUT HE WAS GOB SMACKED BY HOW MUCH ATTENTION HE GOT AT HOW MUCH HIS WORDS MEANT TO SO MANY PEOPLE.
I IMAGINE HE IS FEELING A LOT OF HUMILITY NOW IN GENERAL FROM BEING CHOSEN FOR VICE PRESIDENT BY PRESIDENT TRUMP -- BY DONALD TRUMP. EVEN A DAY WHEN WHEN HE WAS IN SILICON VALLEY HIS DRIVING FORCE WAS CONCERN FOR THE FORGOTTEN WORKING-CLASS, THE PEOPLE IN THIS NATION AT THE STATION'S CORE THAT HAVE SUFFERED BECAUSE OF THE HOLLOWING OUT OF TRADITIONAL INDUSTRY AND THE OPIOID EPIDEMIC. AT THAT ANIMATED HIS DESIRE TO WRITE HIS BOOK. IT WAS EXTREMELY RAW AND EXTREMELY VULNERABLE AND HE SACRIFICED HIS OWN PRIVACY TO SHINE A LIGHT ON A HUGE PROBLEM FACING OUR NATION'S COURT THAT HE WANTED TO MAKE BETTER.
MY EXPERIENCE WITH HIM IN VENTURE CAPITAL WAS THIS WAS HIS PRIMARY DRIVING FORCE. IT WAS AT THE CORE OF HIS IDENTITY. YES, HE WILL BE GOOD FOR SILICON VALLEY BECAUSE HE IS PROGROWTH, PRO-INNOVATION, PRO-OPEN-SOURCE, AND PRO INNOVATION ECONOMY. HE WILL BE VERY GOOD FOR THE COUNTRY BECAUSE OF HIS GENUINE COMPASSION FOR THE FORGOTTEN MIDDLE CLASS AT FORGOTTEN WORKING-CLASS. CAROLINE: MANY FEEL VENTURE CAPITAL DOES NOT HELP THE FORGOTTEN MIDDLE CLASS. MANY FEEL THAT IN FACT
ARTIFICIAL INTELLIGENCE WILL DO A DISSERVICE TO IT YET MORE. CAN YOU TWIN FOR US WHAT SEEMS TO BE ALMOST AT LOGGERHEADS THAT THIS IS SOMEBODY THAT REALLY CARES ABOUT THE HOLLOWING OUT, ABOUT THE OPIOID CRISIS, AT THE SAME TIME THAT HE IS BACKING START UP COMPANIES THAT WILL PERHAPS TAKE AWAY JOBS FROM BLUE-COLLAR WORKERS YET FURTHER? WAS HE TRYING TO DOVETAIL THOSE TWO THINGS TOGETHER WHEN YOU WORK WITH HIM? CRYSTAL: I DON'T SEE AI REPLACING STEEL WORKERS SOON. CAROLINE: FAIR. CRYSTAL: VENTURE CAPITAL IS AN ENORMOUS CATEGORY. EVERYTHING FROM SOCIAL MEDIA TO NATIONAL SECURITY TECHNOLOGY, THE SPACE I WORK IN, TO HEALTH CARE. THE BEST IN TECHNOLOGY I THINK IS ONE THAT MOVES THINGS FORWARD AND PROVIDES ENHANCED CAPABILITIES FOR REDUCED COST. A LOT OF VENTURE CAPITAL
DOLLARS ARE GOING IN DIRECTIONS THAT I THINK ARE DESTRUCTIVE FOR SOCIETY. WE HAVE SEEN THE DESTRUCTIVE FORCE OF SOCIAL MEDIA ON FAMILY STRUCTURES COME ON TEENAGERS. THERE'S IS A WHOLE CATEGORY OF COMPANIES THAT ARE INTERESTED IN BY VENTURE CAPITAL FIRMS THAT ARE EXTREMELY DISRUPTIVE TO THE FABRIC OF AMERICAN SOCIETY AND AN ENTIRE OTHER SECTION OF COMPANIES THAT ARE INVESTED IN THAT WILL TRULY ANSWER OUR PRAYERS. THAT WILL MAKE US COME AS A NATION, HEALTHIER AND SAFER. THAT IS THE AREA WHERE I INVEST IN THE AREA WHERE PETER THIEL FOCUS IS A LOT OF HIS ATTENTION.
THAT IS WHERE JD WAS INVESTING AND HIS FIRM WAS INVESTING. COLLIN GREEN SPUN, A FORMER COLLEAGUE OF JD, THAT IS WHERE HIS FOCUS IS. IT'S HARD TO LUMP VENTURE CAPITAL TOGETHER INTO ONE BUCKET. CAROLINE: WELL SAID. ALOFT VC CURRENTLY SAYING YOU ARE MISSION DRIVEN FOUNDERS ABOUT PROBLEM SOLVING FOR URGENT PROBLEMS. THANK YOU FOR THE PERSPECTIVE OF WHAT J.D. VANCE WAS LIKE TO WORK WITH.
WE APPRECIATE IT. COMING UP WE BRING IN CAMERON PORTER GENERAL PARTNER AT STEELE ATLAS ABOUT THE ROLE OF ENERGY, THE IMPORTANCE OF NUCLEAR POWER IN ARTIFICIAL INTELLIGENCE DEVELOPMENT AND THE RELEVANCE OF ENERGY POLICY IN THE U.S. ELECTION. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: THIS IS BLOOMBERG TECHNOLOGY. YOU ARE LOOKING AT A LIVE SHOT OF THE PRINCIPAL ROOM.
CHECK OUT OUR PODCAST. ON THE TERMINAL, APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG. YESTERDAY WAS THE START OF THE ARE IN SEE.
WITH -- ARE IN SEE WITH THE SAME MAKE AMERICA WEALTHY AGAIN. PART OF THE DISCUSSION WITH AROUND ENERGY. CAMERON PORTER GENERAL PARTNER AT STEELE ATLAS IS WITH US TO DISCUSS NUCLEAR POWER. IT HAS BEEN SOMETHING WE HAVE WANTED TO REALLY TACKLE ON THE SHOW BECAUSE MORE AND MORE ARE SAYING THAT THE ENERGY NEEDS OF ARTIFICIAL INTELLIGENCE CAN ONLY BE SOLVED, TO A LARGE EXTENT, BY SOMETHING LIKE NUCLEAR. WHAT TYPE OF NUCLEAR POWER
NEEDS TO BE BROUGHT TO BEAR? >> NUCLEAR IS CRITICAL FOR ENTERPRISE PROJECTS LIKE AI AND BECAUSE THE AI CAN BE USED IN MILITARY APPLICATIONS. IT'S A NATIONAL SECURITY BROADLY AND NUCLEAR BROADLY THERE IS TWO BUCKETS. FISSION IS A BET ON THE FUTURE INFUSION IS WHAT WE HAVE TODAY.
EDIT: YOU POSITIONED AT THE FIRM AND YOUR INVESTMENTS AS KIND OF INDUSTRIAL TECHNOLOGY. SOMETHING WE HAVE DISCUSSED ON THE SHOW. WE ALSO FOCUS ON PUBLIC EQUITIES, A SPACE THAT HAVE SEEN IN RECENT MONTHS IN 2024 QUITE INCREDIBLE GAINS.
IS THAT EVIDENCE ENOUGH THAT IT IS A POINT OF CONSCIOUSNESS FOR PRESIDENTIAL CANDIDATES IN D.C. AND THE BROADER INVESTMENT COMMUNITY? CAMERON: THE PUBLIC GAINS ARE JUST THE BEGINNING OF THE SIGNS THAT THE TAILWINDS ARE REAL AND HERE TO STAY. WE SAW THE BEGINNINGS OF HOW IMPORTANT PUBLIC POLICY IN NUCLEAR AND ENERGY MORE BROADLY IS STARTING WITH TRUMP. TRUMP BEGAN WITH THE NUCLEAR
ENERGY INNOVATION AND MODERNIZATION ACT AND BIDEN HAS PUSHED POLICIES INCLUDING THE ADVANCE ACT THAT WAS JUST PAST TO MAKE IT EASIER FOR US TO LICENSE NEW REACTORS, TO FINANCE THE REACTORS. THE PRIVATE MARKETS BOTH AT THE LAKE AND EARLY-STAGE ARE TAKING NOTE OF THAT AND INVESTING IN COMPANIES THAT CAN START DELIVERING ON THIS DEMAND. CAROLINE: FORMER PRESIDENT TRUMP RECENTLY WAS SAYING "I AM OK WITH NUCLEAR. THEY HAVE TO DO IT WHERE IT MAKES SENSE." WHERE DO YOU SEE NUCLEAR MAKING SENSE? I KNOW YOU ARE LOOKING AT TRANSMUTEX. CAMERON: WE BACKED TRANSMUTEX BECAUSE IN THE PAST THERE WERE THREE MAJOR PROBLEMS, SAFETY, PREVENTING THINGS LIKE CHERNOBYL AND THREE MILE ISLAND, WASTE, HOW DO WE MAKE SURE WE DON'T HAVE TO SPEND $100 BILLION TO DEAL WITH THE WASTE PROBLEM? AND HOW DO WE DEAL WITH PROLIFERATION MAKING SURE THAT NUCLEAR SYSTEMS WE DEVELOP IN THE U.S.
CAN BE DEPLOYED GLOBALLY WITHOUT RISKING PEOPLE DEVELOPING NUCLEAR WEAPONS. WE INVESTED IN TRANSMUTEX BECAUSE THEIR PARTICLE ACCELERATOR ALLOWS THEM TO DEVELOP A REACTOR THAT SOLVES THOSE THREE CORE ISSUES USHERING IN WHAT WE THINK IT'S THE FUTURE OF NUCLEAR ENERGY. ED: ON THAT EPISODE OF ALL IN DONALD TRUMP WAS DISCUSSING EUROPE. I THINK FRANCE WAS THE SPECIFIC EXAMPLE. BUT THE U.K. HAS SOME ACTIVE NUCLEAR REACTORS. IT'S SOMETHING THE UNITED
STATES IS NOT JUST EVEN WITH IN 2024. WHAT IS THE TIMELINE OF WHAT IT WOULD TAKE TO BRING NUCLEAR BACK IN A MEANINGFUL WAY, TO YOUR MIND? CAMERON: IT'S A DECADE-LONG INVESTMENT. IT WILL TAKE SEVERAL YEARS FOR THE SYSTEMS TO GET LICENSED AND PROBABLY FIVE YEARS, IN AN OPTIMISTIC CASE, FOR THEM TO BE BUILT. THAT'S THE TIMELINE WE ARE SEEING NOW IN CHINA, WHICH CURRENTLY HAS THE MOST REACTORS UNDER CONSTRUCTION. LOOK AT FRANCE VERSUS GERMANY. GERMANY WENT ALL IN ON WIND AND SOLAR AND WIND RUSSIA PULLED THE PLUG ON NATURAL GAS, ALL OF A SUDDEN, THEIR GRID WAS THROWN INTO SHOCK AND VOLATILITY THAT HAS AN INBOUND THEIR MANUFACTURING -- UNDERMINED THEIR MANUFACTURING INDUSTRY UNTIL TODAY.
WHEREAS FRANCE, RELIANT ON NUCLEAR, HAS BEEN ABLE TO MAINTAIN STABLE IN AN ENERGY CRISIS. CAROLINE: HOW QUICKLY DO YOU THINK POLICY WILL CHANGE? CAMERON: IT'S ALREADY CHANGING. UNDER BITE AND WE SAW A COMMITMENT AT COP 20 82 THREE X NUCLEAR IN THE U.S. AND WE ARE SEEING THAT BACKED UP BY POLICY LIKE THE ADVANCE ACT, AN INCREDIBLY BIPARTISAN BILL.
THAT WILL CONTINUE UNDER DONALD TRUMP OR JOE BIDEN. IF IT IS TRUMP I EXPECT TO SEE MORE DEREGULATION TO GET REACTORS TO MARKET SOONER AND HIS FIGHT AND I EXPECT TO SEE INCENTIVES TO PROMOTE INVESTMENT IN THESE COMPANIES. ED: A VERY IMPORTANT NUCLEAR DISCUSSION. THANK YOU. COMING UP, WE ARE JOINED BY THE COO OF NORTHERN DATA GROUP TO DISCUSS THE COMPANY'S STRATEGY ED: ROSANNE KINCAID-SMITH IS HEAD OF FRANKFURT-BASED NORTHERN DATA GROUP. THE COMPANY IS EXPECTING TO SEE REVENUE TRIPLE S DEMAND FOR AI GROWS. IN SIMPLE TERMS YOU GO FROM BEING LARGELY FOCUSED ON CRYPTO AND MINING, AND THROUGH ACQUISITIONS, A HIGH PERFORMANCE DATA CENTER IN THE AI CONTEXT, IT SEEMS TO BE THAT PART THAT WILL DRIVE THE REVENUE TRIPLING.
EXPLAINED THAT LONG-TERM FORECAST, PLEASE. ROSANNE: YEAH. I THINK TO CONTEXTUALIZE, NORTHERN DATA GROUP IS, AS YOU SAY, A HIGH-PERFORMANCE COMPUTING SOLUTIONS PROVIDER. WE HAVE AN ESTABLISHED POSITION IN THE HPC MARKET AS A RESULT OF OUR LEGACY IN CRYPTOCURRENCY MINING. BUT HPC IS NOW FRONT AND CENTER, THE PICKS AND SHOVELS, IF YOU WILL, THE BOOM IN GENERATIVE AI. WE ARE WITNESSING A REAL GLOBAL RACE TO MEET THE SORA IN DEMAND FOR GENERATIVE AI AND ITS MASSIVE COMPUTING REQUIREMENTS. COMPANIES ARE SCRAMBLING IT TO
SECURE ACCESS TO THE LATEST GPUS THAT WILL BE HOUSED IN DATA CENTERS. THERE IS A REAL SHORT SUPPLY OF DATA CENTERS TOO. UNLIKE MANY OTHERS, WE ARE HYPER FOCUSED ON INVESTING NOT JUST IN THE MOST CUTTING EDGE HARDWARE AND SOFTWARE TECHNOLOGIES, BUT IN THE MOST SUSTAINABLE DATA CENTER ENVIRONMENTS.
OUR ENVIRONMENTS ARE MORE BROADLY POWERED BY 100% CARBON FREE ENERGY AND WE WOULD REALLY LIKE TO KEEP THAT CARBON FOOTPRINT AT THE MOST MINIMAL POINT. THE OTHER EH THOS THAT'S IMPORTANT TO US --. ED: SHARES HIGHER AFTER 214 MILLION EUROS OF SHARE ISSUANCE EARLIER. THIS IS THE FIRST TIME YOU HAVE SPOKEN PUBLICLY SINCE FORMER EMPLOYEES OF THE COMPANY FILED SUIT MAKING ALLEGATIONS AGAINST THE MANAGEMENT TEAM OF FRAUD.
SUMMARIZING, THEY SAY YOU FALSELY MISREPRESENTED SOME OF THE FINANCIALS OF THE COMPANY. WE WANT TO GIVE YOU THE OPPORTUNITY TO COMMENT PUBLICLY ON BLOOMBERG TECHNOLOGY ABOUT THAT SUIT. ROSANNE: YES. THOSE THAT UNDERSTAND OUR BUSINESS KNOW THOSE COMPLAINTS ARE COMPLETELY WITHOUT MERIT. WE HAVE ALREADY FILED A MOTION
TO DISMISS AND WE ARE CONFIDENT THE LEGAL PROCESS WILL VINDICATE THE COMPANY. WE ARE PUBLICLY TRADED. ON OUR FINANCIALS ARE PUBLICLY AVAILABLE ALONG WITH OUR STABLE CASH AND FINANCIAL POSITION. WHILE IT IS SOMEWHAT OF A NUISANCE, WHAT WE ARE LASER FOCUSED ON IT NOW IS EXECUTING AGAINST OUR STRATEGIC PLAN AND THE ULTIMATE CREDIBILITY OF OUR BUSINESS AND THE INNOVATION WE DRIVE IS BUILT ON THAT DELIVERY. WE AREN'T WORRIED ABOUT IT AT ALL. CAROLINE: MIGHT YOU LOOK AT ANOTHER LISTING IN THE UNITED STATES? THERE HAS BEEN A THEME OF COMPANIES THAT WERE BIG IN CRYPTO AND CRYPTO MINING PIVOTING AND BECOMING A KEY RESOURCE IN THE WORLD OF AI.
WOULD YOU CAP INVESTORS HERE? ROSANNE: I CAN'T COMMENT ON MARKET SPECULATION, BUT OUR BUSINESS IS PERFORMING WELL AND IN THE AI SECTOR IS THRIVING. OF COURSE WE WANT TO OPERATE IN THIS SPACE IS MOST OPEN TO THE ADVANCEMENT OF GENERATIVE AI AND THE BUSINESS WE ARE DRIVING. AND ALSO AS A POINT OF CLARITY, OF COURSE WE ARE AND PIVOTING FROM ONE THING TO THE OTHER. WE HAVE USED OUR GROUND BREACH IN SOLUTIONS TO DEVELOP NEW LESSONS AND TAKE LEARNINGS FROM THE LESSONS TO PROVIDE NEW USE CASES LIKE GENERATIVE AI AND MACHINE LEARNING. CAROLINE: HOW IMPORTANT IS THE U.S. PART OF THE BUSINESS VERSUS GERMAN AND EUROPEAN? ROSANNE: THE EUROPEAN ENVIRONMENT IS OUR HEART.
WE ARE A EUROPEAN-BASED COMPANY WITH A EUROPEAN HEART, BUT WE ARE A GLOBAL BUSINESS WITH A GLOBAL FOOTPRINT. WE USE THE INVESTMENT, AND YOU WILL HAVE SEEN, AS YOU MENTIONED, OUR CAPITAL RAISE, THAT WILL BE USED TO EXPAND OUR FOOTPRINT INTO THE U.S.. HOWEVER, PART OF THE BUSINESS IN EUROPE IS TRULY IMPORTANT TO US BECAUSE IT PROVIDES USP'S. WE ARE DATA SOVEREIGN WITH ACCESS TO LARGE AMOUNTS OF ELECTRICITY. THESE ARE TRUE U.S. PEACE PROCESS WE GO FORWARD. CAROLINE: ROSANNE KINCAID-SMITH GREAT TO HAVE TIME WITH YOU, COO OF NORTHERN DATA. THAT DOES IT FOR BLOOMBERG TECHNOLOGY. ED: A LOT TO RECAP.
2024-07-19 15:43
