April 15, 2024 • 43 mins
Bloomberg's Caroline Hyde and Ed Ludlow break down the latest updates from the Middle East after Iran launched missiles and drones over the weekend into Israel. Plus, senior Tesla executives leave as the company plans to slash 10% of its global workforce, and Apple faces its worst iPhone slump since Covid.
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Speaker 1 (00:01):
From Marhard where Innovation of Money and Power Collie in
Silicon Valley, NBN.
Speaker 2 (00:07):
This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3 (00:25):
I'm Caroline Hyde a Bloomberg's World Headquarters in New York
and I met Ludlow in San Francisco.
Speaker 4 (00:29):
This is Bloomberg Technology.
Speaker 5 (00:31):
Coming up. We'll bring you the latest updates from the
Middle East.
Speaker 3 (00:34):
That's after Iran launched missiles and roans over the weekend
into Israel, the US, and Europe.
Speaker 5 (00:39):
They ramp up calls for Israeli restraint.
Speaker 6 (00:42):
Full coverage ahead plus shares of Tesla slump amid the
company's plans to slash ten percent of its global workforce,
prompting senior executives to depart the company.
Speaker 4 (00:52):
We had the details and Apple.
Speaker 3 (00:54):
It faces its worst liphone slump since Covid as a
company faces increased.
Speaker 5 (00:58):
Competition in China.
Speaker 3 (00:59):
We'll discuss that and so much more throughout this hour,
but first we turn our attention to a complex geopolitical
and macroeconomic picture that's being painted today.
Speaker 5 (01:07):
Now.
Speaker 3 (01:07):
The pullerhead really is the fact that Naslak is currently
back in the red. We were managing to push higher
on stocks but certainly the bond market field or full
effect of actually a stronger, more resilient macroeconomic picture in
the United States coming from retail sales that were far
faster than had been anticipated. But on the flip side
is geopolitics is a concern about, of course, an unprecedented
(01:28):
attack coming from Iran to Israel and what that really
means in terms of actually dialing up or cooling of
some of those geopolitical anxieties, notably oil is on the
lower side that drags the Bloomerg commodity index down. But
remember there's actually added sanctions on Russian movement of metals
into the LME at the moment, and that's been moving
around aluminium and some other.
Speaker 5 (01:48):
Key metals to be keeping it on.
Speaker 3 (01:50):
So complex going on in the commodity space as well,
but let's move it on as we try to really
anticipate which way risk assets are going to be going.
One that was in full effect because ultimately it was
the when you ascasset that was really able to be
traded at the time of those initial reports, as many
had anticipated an attack coming from Iran into Israel. But
we see the volatility that was in display when it
(02:10):
came to bitcoin on Saturday afternoon plumbting.
Speaker 5 (02:13):
We now recover some of that.
Speaker 3 (02:14):
We're still off by more than four percent over the
course of a three day trading period ed. We're currently
at sixty three nine hundred of thereabouts.
Speaker 6 (02:20):
But what are you watching on the micro Tesla? It's
a big one. I broke the story this morning that
Drew Baglino, who led powertrain and energy at Tesla, one
of only four named executive officers, has resigned and left
the company. The stock near session lows down three point
three percent. We also confirmed Elon Muskers told staff that
(02:42):
ten percent of the workforce will be cut in pursuit
of cost reduction, productivity, and what he called duplicate rolls.
We'll get all the details later from the Bloomberg team.
The other big one is Apple. IDC data showed shipments
of about fifty million iPhones in the first quarter, but
that's down ten percent year on year.
Speaker 4 (03:01):
Now that's third.
Speaker 6 (03:02):
Party data, and it's not just an Apple story. With
the stockdown eight tens of one percent, it's a story
about China's domestic smartphone makers having success growing market share
in a really key market. We will speak to bloom
those Mark German because it's complicated, but Apple is lower,
whether that's cause or not.
Speaker 4 (03:20):
Who knows.
Speaker 6 (03:21):
A lot going on in the world of technology this morning,
but also a lot of news around the world.
Speaker 3 (03:25):
Yeah, and let's get back to it, ed, because Iran's
attack on Israel is what many are talking of. Israel
and its allies intercepted the overwhelming majority of more than
three hundred missiles drones fired by Iran. Joining US now
from Tel Aviv is Our Israel. You're O chief and
senior editor Ethan Rohner, and we thank you for your time.
Speaker 5 (03:42):
Ethan.
Speaker 3 (03:43):
Well, probably how is it being felt and digested in
Israel right now?
Speaker 7 (03:51):
Yeah, that's a great question.
Speaker 8 (03:52):
I mean, I think that the overall senses of relief because,
as you said, of three hundred and fifty projectiles, including
one hundred and twenty ballistic missiles that come here in
eight or ten minutes from around the vast majority, the
overwhelming majority, were stopped before they got here. They were
about half a dozen that got through to a military
(04:13):
base in Israel. They didn't do much damage, but they
did hit and so there's a kind of a mixed
feeling of well, we got them, we don't nobody was killed.
But but there's a seven year old girl fighting for
a live shrapnel that hit her in the south. But
the general senses this could have been much much worse.
So we can we Israel can take its time to decide.
Speaker 5 (04:35):
What to do next.
Speaker 8 (04:35):
But there is a a rubicon that's been crossed. I mean,
we we have for the very first time in nearly
four decades as Israel taken direct hits from missiles of
this kind, and the first time ever in Thish what
has been a shadow war between Israel and Iran emerged
from the shadows. So we're in a new era, and
it's not clear what that means.
Speaker 6 (04:58):
Ething late to the program, we're going to talk a
little bit about the sort of coalition response. You know,
Israel made those interceptions in conjunction with the United States
and the United Kingdom. I'd also like to learn a
little bit about the kind of operational response on the
ground in Israel, what it is happening in the streets,
what the government is telling its citizens of where we stand.
Speaker 8 (05:23):
So at the moment, in fact, there is a sense
of calm. The government issued a statement that they were
going to reopen the schools and the sort of day
camps that they had closed on Saturday night in anticipation
of this attack. So everything is back to normal, I
think it's fair to say. And by the way, the
(05:45):
Iranians also reopened their airspace, so there is no sense
that there's going to be a continuation of this war
in the coming three days. On the other hand, the
Israeli cabinet met last night and met again tonight in
order to discuss what kind of sponse it needs to have,
and those on the far right are urging a very
vigorous response, a crushing attack, as they put it. It's
(06:09):
not clear if they're going to have their way. It
doesn't seem so, because it does feel that the embrace
of the United States, the United Kingdom in France of
Israel at this point has been a warm bath for
Israelis after many weeks of hostility because of their war
in Gaza. At the same time, you see, the Israelis
have two audiences. They worry about these that we just
(06:30):
talked about, and then their enemies that it's just Balahamas
and Iran, and they fear that any lack of reaction
will be perceived as weakness, and so there is a
sense that they must react.
Speaker 7 (06:42):
The question is when and.
Speaker 6 (06:43):
How Bloomberg's even brunna on the ground until they're really
grateful for your time on the ground reporting as well,
and we have a big audience in this show in
Europe and the emir regionable broadly. I point out the
easy Jet, one of the airlines is an example, has
canceled flights to his through April twenty first, so there's
a kind of business impact.
Speaker 4 (07:03):
There as well.
Speaker 6 (07:04):
Let's go from Israel to Washington, DC and bring in
Bloomberg National security reporter Nick Wadhams. Nick I was talking
to Ethan about the kind of coalition response that United
States was involved. The United Kingdom was involved in part
because Iran had given heads up almost on their actions.
My understanding is Biden has been in touch with the
Israeli government quite frequently. What we know from the US
(07:27):
side at this stage.
Speaker 9 (07:29):
Well, what we're hearing from the administration is essentially that
they want Israel to put the brakes on any sort
of response. So we've been told the view from the
White House is listen, Israel, take the win. Your air
defenses did an extraordinary job deflecting and rebuffing about ninety
(07:49):
nine percent of those incoming drones and missiles, and there
is no need for an immediate response. Obviously, as Ethan
just said, the pressure on Prime Minister Benjamin Netnya, who
is coming very much from the other direction as well.
So looking ahead for the next few days, what we're
really going to see here is a good reflection on
the limits of US leverage over Prime Minister Netnya, who
(08:13):
President Biden could not have been more clear about what
he wants.
Speaker 4 (08:17):
To see next, which is de escalation.
Speaker 9 (08:19):
The US does not want to be pulled in deeper
into this conflict. They don't want this to turn into
even a bigger conflagration, and they want Prime Minister Benjamin
Netnyah to hold fire. Whether he listens to that advice
is another thing entirely.
Speaker 3 (08:35):
For now, rightly or wrongween the market, and that is
often what we focus in on here.
Speaker 5 (08:40):
A Boomberg has.
Speaker 3 (08:41):
Been deeming this to be something that's containable. As of
the moment, Nick, where do we have to align our
sites now? Is it thinking of the next statement that
we do get from Biden. We anticipate a conversation a
press conference as soon as twelve o'clock that's right.
Speaker 9 (08:56):
So I mean, will really be looking at what the
tone is from the president and from other officials in
the administration. Are they projecting unity? Is there more sense
of those fractures that had emerged in recent weeks with Israel?
Do we have a sense that these two governments are
diverging in their perspectives on what the outcome will be here?
(09:19):
I mean, the attack by Iran could have been so
much worse. I think you're seeing in the market in
some ways a sense of relief that Israel repelled those
As Ethan mentioned, there had been no deaths and fairly
limited destruction. But what happens if Iran decides to respond
yet again in response to a potential Israeli retaliation. So
(09:40):
there's a lot of fear that there could be an
escalatory spiral that gets to a situation that neither side
can control.
Speaker 3 (09:46):
N it Wardens, thank you for giving us the context
and keeping us up to speed.
Speaker 4 (09:59):
Let's talk about Tesla.
Speaker 6 (10:00):
The ev maker is going to cut ten percent of
its workforce after a slowdown in demand, Elon Musk preparing
the company for the next phase of growth.
Speaker 4 (10:10):
We also reported this.
Speaker 6 (10:11):
Morning that two key executives have left Tesla in the
last twenty four hours. Drew Baglino, who's been at Tesla
for eighteen years and led everything to do with powertrain
energy storage, resigned, is what I'm told by a source,
and he confirmed that later on in a post. Rowan
Betel is basically the public policy chief in many ways
(10:32):
the kind of devacta facto voice piece of Tesla on
social media. He has also left the company. Let's bring
in Bloombog's Global Autoza Craig Trudell.
Speaker 4 (10:42):
Craig.
Speaker 6 (10:43):
It was a bit of a long night or an
early morning, depending on where you were around the world,
but let's start with Drew Baglino, one of only four
named executive officers at Tesla. I thought this was a surprise,
and what sources told me is that he resigned. He
wasn't laid off off as part of the ten percent
KA What else do you unite?
Speaker 10 (11:05):
Yeah, I know less than you, you know, but I
do have to sort of speculate about, you know, the
extent to which this may be about, you know, a
difference of opinion on the direction of the company. This
you know, this these this news comes shortly after reports
that the company is you know, maybe putting aside its
(11:26):
work on a cheaper vehicle and focusing efforts on a robotaxi.
I think Elon Musk, you know, at first called that
a report by Reuter's false, and then you know, seem
to sort of lend credence to it by scheduling an
introduction of a robotaxi months from now, which you know,
sort of suggests that you know, he's focused on that,
(11:47):
and you know that raises questions about whether whether Baglino
thought that's the right move, whether Rohan Patel thinks that's
the right move. After all, he's going to be the
person or would have been the person in Washington who
would have to sort of justify that to regulators, and
whether or not Tesla is really ready to put that
(12:08):
forward is a question after years and years of the
company talking about having robotaxis, or at least Musk talking
about having robotaxis yes, when they haven't.
Speaker 3 (12:20):
All of this is sort of trying to be a
level of prioritization or anxiety that is among investors at
the moment. Many would say, Okay, cutting down on expenses,
on costs is something that is necessary in the context
of EV sales. More broadly, Craig. What could be therefore
be really unnerving the investor.
Speaker 5 (12:39):
Base right now when you have SVPs leaving. Is it
more the.
Speaker 3 (12:42):
Concern about the handing over of power ultimately any sort
of fact that Musk currently leads and has done since
two thousand and eight.
Speaker 10 (12:52):
Yeah, I mean, I think it's this concern about, you know,
not knowing what the plan is, right, and this is
not just a store that has only surfaced lately.
Speaker 11 (13:02):
You know.
Speaker 10 (13:03):
We go back to the Walter Isaacson biography months ago,
and one of the more compelling bits within that book
was this idea that there was 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.
Speaker 7 (13:20):
And you had.
Speaker 10 (13:22):
Within that book, you know, this really compelling section of
you know, executives having to kind of talk Musk out
of this idea that they could just you know, design
the car without a steering wheel and count on the
idea that the technology was ready.
Speaker 7 (13:36):
And I think that's something.
Speaker 10 (13:38):
That you know, we've seen for for some time, This
idea that you know, Musk has has really 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. And what other executives have said, including
you know, engineers that have had to testify in lawsuits
related to people losing their lives because they too much
(14:00):
trust into Tesla's driver assistance system. So this is something
that's really tricky if you're an executive who has to
kind of, you know, square that circle.
Speaker 6 (14:11):
Yeah, Craig, quickly, I think let's just re recap the basics.
Ten percent of the workforce to be cut. How many
people is that?
Speaker 4 (14:18):
Where is it?
Speaker 10 (14:20):
Yeah, So this is a company that ended last year
with over one hundred and forty thousand people. So assuming
this is company wide, we know it's a global according
to Musk's email to staff, that would be more than
fourteen thousand people. We're careful on that because Musk has
been a little bit all over the place with his
messaging in the past when he's made job cuts.
Speaker 3 (14:40):
Craig Trudell, we thank you so much. It's just been
a phenomenal amount of reporting coming from both of you, gentlemen,
and so thank you very much for setting the context. Meanwhile,
coming up, Apple iPhone shipments falling ten percent in the
March quarter, making it the worst sales slump since COVID.
We're going to bring you the details next. Another key
points drag on these benchmin Edward. You're watching on the
(15:01):
micro level.
Speaker 4 (15:01):
Two little bit of MNA.
Speaker 6 (15:03):
Monday, Bloomberg reported that sales forces, according sources, looking at
a deal for Informatica, and it's all about data capabilities.
The stock down more than five percent on it. The
street kind of likes it, but it's a deal. We're
waiting on confirmation on Bloomberg said it could be reached
this month, so let's stay tuned for that as we go.
(15:25):
This is Bloomberg Technology.
Speaker 3 (15:42):
Apple, it's facing its worst iPhone slump since COVID as
competition in the Chinese market really does heat up now.
Third quarter shipments are apparently sliding worse than expected, almost
ten percent, as the tech giant delivered fifty point one
million phones, falling shy of Anna estemates of fifty one
point seven mins. And Bloomberg's Mark Gumman joins us now
with the context of who's providing us this data and
(16:05):
what it means about Apple versus the other competitors.
Speaker 11 (16:10):
Yeah, so itc puts up their quarterly reports on smartphone shipments,
and of course these are their analysis based insights into
how many units for ships, so they don't know for sure.
We'll get a better idea on May second, when Apple
announces its earnings report, and then we'll get a better
idea from the other phonemakers when they announce their earnings reports.
But IDC is usually on target in terms of a
(16:33):
general range or in terms of the overall theme, and
the overall theme this time around is a nearly ten
percent shipment decline on an annual basis for Apple. It's
the most significant decline of any of the phonemakers they track.
It indicates that Samsung is back in the number one
global smartphone sales position, and it indicates that sales from
(16:56):
some Chinese brands, one called Transition into particular, within over
eighty percent year of a 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 the slump going on right now for
the company, and it seems like most of it is
(17:17):
China based, so we'll have to wait until May two
to know for sure.
Speaker 6 (17:20):
However, all right, I believe most Mark, German chief correspondent
covering Apple.
Speaker 4 (17:24):
Thank you.
Speaker 6 (17:24):
Let's keep the conversation going and bringing in Fionas and
Kotta now who's senior market analyst at City Index, for
her take on Apple, and Mark summed up the IDC
data very well. You either put emphasis on the Apple
specific data or you put emphasis on the market share
data coming from the Chinese handset makers and how they
had gains in sales. Where does your mind goes to first, Fiona, do.
Speaker 4 (17:50):
You know what?
Speaker 1 (17:50):
I think it's a really good idea to actually look
at these two bits of data together because if you've
got Apple falling and yet global smartphone shipments elsewhere increasing,
I think that makes it an even more dramatically difficult
position and picture for Apple. I mean, it really does
highlight I think the extent of the problems that the
(18:12):
Apple is facing, particularly surrounding the iPhone.
Speaker 5 (18:15):
And I think I mean, obviously.
Speaker 1 (18:16):
China here is a very big story. There is a
lot of competition that Apple is facing in China.
Speaker 5 (18:23):
But I think there's also another side to this as well.
Speaker 1 (18:25):
I just feel that Apple is really behind just as
Sara as Innovation is concerned, as Sarah's AI is concerned
and all that's also playing out in the share price,
which has really had a tough start to twenty twenty.
Speaker 3 (18:38):
Four two point seven trillion dollar market cap still but
as along with Tesla are two key stories today, these
two names in this so called Magnificent seven have been
anything but magnificent. It feels like in the last month
or so, certainly beginning of this year, Fiona, can Apple
win back yours and other investors' hearts and minds if
(18:58):
they are going to be able to show, look, we've
got AI within the M four process, that we're going
to be able to have it and you know, sometimes
they're known to be a little bit slower but getting
it right.
Speaker 5 (19:07):
Yeah, that's right.
Speaker 1 (19:07):
I mean, definitely a little bit slower. They feel like
they're very slow to the AI party right now, and
that's been sort of you know, punished by They've been
punished by investors, and that I think, you know, has
been part of that sell off that we've seen. I
think there is a potential for this to turn around.
I don't think this is the end of the line
(19:28):
at all for Apple. I think, you know, we could
see a good turnaround as long as they get their
AI products really spot on. I think also sort of,
you know, the geographical diversification into India is an area
that again could be very interesting for Apple as it
moves away from China. But at the end of the day,
China is a massive in market and it's also a
(19:49):
very important market. So it's going to be very interesting
to see whether Apple can actually turn this around quickly
without any support from really from China.
Speaker 6 (19:58):
Yeah, if you last night, Caroline and I regroup with
a team and we're like, you know, what's the story
going to be Monday? It looked like Apple, we had
the geopolitics of what's happening in the Middle East, and
then Tesla, and I'm trying to find a commonality between
all of them. I think that the commonality is should
we be talking more about the health of the global
(20:19):
economy right now, particularly for consumer facing technology?
Speaker 5 (20:23):
Yes, exactly.
Speaker 1 (20:24):
So that's a really really important point here as well.
I think the macro backdrop for these stocks is just
not ideal right now. You know, if we have a
look at where we are speaking as far as macro
picture is concerned, it's not smooth sailing at all.
Speaker 5 (20:39):
For the consumer.
Speaker 1 (20:40):
You know, we've got the prospect of the Federal Reserve
keeping interest rates high for longer after we've seen those
hotter than expected inflation figures last week. But then saying that,
we've also seen that the retail sales in the US
are holding up. But I think, you know, when you've
got financing costs so high in the US, that does
obviously impact those that are purchasing cars their ability to
(21:01):
be able to get financing or even desire to get financing.
But also when you've got squeeze on households, you know,
big expensive items such as the latest iPhones are going
to be perhaps items which aren't necessarily top of the list.
So you know, I do think the macro backdrop has
a lot to play here as well.
Speaker 3 (21:16):
If you if a client cause right now, do you
say take risks off the table or do you say
stay in equities even though they're near records.
Speaker 1 (21:24):
Oh, it's a good question, you know. I think 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 geographic geopolitical tensions start to calm again,
then I think there is a potential there. But you know,
(21:44):
we've got earning season. We're just ramping up earning season now,
and I think that's going to be a good distraction
for the market to be able to sort of have
a look what's actually going on, to see whether the
lofty valuations are actually supported by the fundamentals.
Speaker 3 (21:59):
Gold and Sachs example, managing to be and talking up
AI City Index Senior market analyst Fiuna Sincota.
Speaker 6 (22:13):
Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.
Speaker 5 (22:16):
Karen Hid right here in New York.
Speaker 3 (22:18):
Let's get you quick check on these markets, because there
is a complicated context to what's going on in the
markets right now. Whether it's a macro picture that shows
resiliency in a US economy, those retail sales still showing
real strength of a US consumer. And then the geopolitical
situation we currently find ourselves trying to understand get a
grips as to where we push forward with Israel and Iran,
an unprecedented attack coming from Iran on Israel. Over the
(22:40):
course of the weekend, NASDAK pushing back into the green.
We had been in the red a little bit on
the Nasdaq benchmark. More broadly, as some of the anxiety
was still there to be seen within the markets. But
Apple actually and indeed Tesla key points drags on the
Nasdaq one hundred. More broadly, Apple ORF by six ten percent.
We're worried about market share, particularly as competition builds up
over in China, and the IDC numbers show that Apple
(23:02):
has had its worth quarter in terms of sales since
back in the COVID days. Tesla off by two point
eight percent. This is down to your reporting ed more
broadly on the fact that executives are leaving an indeed
ten percent of the workforce looking to be removed as
they really try and focus on a market that has
been under pressure of late.
Speaker 5 (23:20):
That's off by two point eight percent.
Speaker 3 (23:22):
But we want to move on to what happened when
it comes to risk assets over the course of the weekend.
Speaker 5 (23:26):
This is a geo political story that we need to
shine a.
Speaker 3 (23:28):
Light on in terms of Bitcoin sold off hard on
Saturday afternoon. Why it's one of the only risk assets
that you were able to trade when you first learned that. Indeed,
Iran has lived up to it to what it had
been telling certain members of leaders across the world that
they would indeed be looking to attack Israel, and we
saw it hit some sixty one thousand dollars at one point.
(23:50):
We're off by three point six percent over the last
three trading days, and I think that's where we try
to dissect there is ongoing volatility in an asset like
crypto and bitcoin, But then where are the applications in
the here and the now fabian assets here drill down
on what he's seeing, is Managing director and global headed
Digital Economy over at Moody's Ratings.
Speaker 5 (24:08):
You're someone who's been thinking about.
Speaker 3 (24:10):
The harving the so called fundamentals of bitcoin, the way
in which we can adopt blockchain technology. But when you
look at the volatility as it it's still not a
store of value but ultimately a risk asset.
Speaker 5 (24:21):
How does that make your conversations harder?
Speaker 7 (24:24):
Well, it's actually very hard to guess the direction of
travel for bitcoin overall, because when you think about it,
it's the value of it is not driven by clear
economic drivers and like other assets, so trying to predict
the value of bitcoin is like trying to predict people's start.
(24:45):
So it can be a lot of things. It could
be the macro environment, could be the dro political environment,
that could be many other things, And it could be
the having that's coming up probably at the end of
this week, which affects behaviors in particular people right now
bidding up or down, and it creates more volatility, which
is to be expected, and it has nothing to do
(25:07):
with kind of the long term evolution of the price,
but at least as of now you're seeing volatility.
Speaker 3 (25:12):
Yeah, many would say, look, if it's meant to be
a store of value, if it's meant to be in
some way fight against inflation, you would have thought, in
a risk averse worrying time and geopolitics, you will be
in bitcoin rather than setting off. But then people say, look,
this is a risk asset that you could say, show
your anxiety and for the course of the weekend. So
when you say that you shouldn't be predicting it on
a day to day basis, How then do you ensure
(25:34):
that people are thinking about digitization, about real world assets
becoming tokenized when people are still fundamentally trying to work
out whether they should even be having one or two
percent of their wealth in cryptocurrency.
Speaker 7 (25:45):
So that's a great question, and those are very different things.
So I would say cryptocurrencies per se are essentially very speculative.
People are bedding up down, as I said, with probably
some upward pressure post having at least you believe that
the past is a good proxy for the future. But traditionally,
(26:06):
I would say it started with crypto. It started with
bitcoin and ether and others, and then what we observed
was that financial institutions and institual investors in general were
very cautious traditionally about cryptocurrencies per se. So you started
to see like a different segment of the digital finance ecosystem.
There was more about using the technology underlying bitcoin and
(26:29):
other assets and reusing the technology to repipe financial markets
and the global economy to make it potentially better, faster,
and more efficient. So crypto was mainly for retail investors,
and the rest of digital finance mainly for institual investors.
And that's really what we've been keeping an eye on
(26:52):
and what we'll probably reshape financial markets going forward. Now
what's interesting is recent the use of convergence in the
sense that institutional investors, again that were cautious, would say
instinctively it was not even regulation, even though it played
a part of it. This suddenly decided that it was
(27:14):
time to get into the crypto sphere as well, in
particular with the approval of bitcoin ETFs recently, and so
now you're seeing institutional investors in both that kind of
took anization space, which has many benefits, and also in
the crypto currency space where they were not involved for
(27:35):
a long time A Fabian.
Speaker 6 (27:37):
I'm fascinated by the credit rating perspective on this. You
talk about harving and then you think about the limit
on supply long term infinitely of bitcoin, but in moments
like the weekend, in geopolitical crisis or risk of sentiment,
there's just clear evidence it's a liquid market. So if
you are approaching this from a credit rating, the effective
(28:00):
what is the conclusion you draw?
Speaker 7 (28:02):
All right, So let me clary if at one point
here a cryptocurrency enough itself and become in particular, there's
no credit risk associated with it. There's no promise associated
with the cryptocurrency, so you can't really rate whether the
issue of a cryptocurrency will meet its promise and if
(28:24):
it doesn't, by how much you gould miss it, which
is what credit ratings are intended to do. So there's
no there's no credit risk persuit with the cryptocurrency. The
reason we're keeping an eye on them and on Becoming
in particular, is because you know that institutions out there, governments, corporations,
and others are invested in cryptocurrencies. So we want to
(28:45):
keep track of whether it could impact their credit risk
because they have that asset in their portfolio, for instance.
And we also want to keep track of things like
market contagion risk that could affect one way or the
other from the crypto world into traditional finance, or even
the other around, from traditional finance into a crypto currency.
So it is an asset class that is, you know,
(29:07):
that's 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.
Speaker 6 (29:21):
But there is a connection for secondary markets and the
underlying technology, which is blockchain. That's something you look at
very quickly. Explain your work.
Speaker 7 (29:29):
There, correct, So the financial markets are likely being reshaped
by technologies that look like bitcoin, that look like that
looks technologies that look like blockchain. Sorry, And the reason
is that those technologies make processes a lot more efficient.
So I'm going to give you an example to illustrate
asset organization Caroline mentioned that a minute ago. It's really
(29:52):
the process of turning real world assets into a digital
stamp on a blockchain PLO. And because it's become a
digital step, it's very easy to manage to trade. And
those assets that are being tokenized could be anything from
a bond or stock, or real estate or art, and
(30:14):
so you transfer all the legal rights, in particular the
ownership rights that come with the assets. You push that
into that digital token that you can trade and manage efficiently.
So it makes it a lot more efficient to manage
and trade. In particular, you can settle super quickly, it
could be even just a immediate or fraction of a
second to settle payments on that blockchain. You can track
(30:38):
and control everything that's happening, So it makes it better
from a risk and complainants perspective, and also yes, really
creates extra liquidity and new opportunities to find funding and
to invest overalls. Think about a building, for instance, You
can be very hard to buy that building alone. But
(30:58):
if you can tokenize and cut these talkings into small
trunks that many people can invest in suddenly, right, and
it makes it as easier to access.
Speaker 6 (31:07):
FABI anastic deep analysis Managing director and global headed Digital
Economy at Moeting's ratings.
Speaker 4 (31:12):
We're grateful with your time.
Speaker 6 (31:12):
Coming up on the show, we're going to be joined
by Google Clouds lean more on the company's new training
initiative in generative AI, cybersecurity and data analytics analytics. That's
coming right up. Stay tuned. This is Bluebird Technology. Okay,
(31:38):
quick talking tech. There's a lot going on in the news.
First start, the BIND Administration plans to award Samsum as
much as six point four billion dollars in grants.
Speaker 4 (31:47):
To increase chip production in Texas.
Speaker 6 (31:49):
This is part of US efforts to bolster domestic semiconductor manufacturing.
The southern Korean company plans to invest more than forty
billion dollars overall. Plus Entry and Horowitz close seven point
two billion dollars for its newest set of funds on Friday,
According to an Axios report, the firm beat its own
fundraising goal of six point nine billion, with that capital
(32:10):
aimed for its growth fund. And open Ai named the
former president of aws's Japan to Down Nagasaki to spearhead
its push to enterprise clients in the world's fourth largest economy.
Open Ai is opening an office in Tokyo, is it
releases a custom GPT form model.
Speaker 4 (32:28):
Catering to Japanese language users.
Speaker 3 (32:31):
Caroline, and let's get two more broadly in AI context
right now, because we're all thinking about how to reskill
and companies are thinking about how to reskal their own employees.
At the moment, it's also been the focus of Oh
Google Cloud, it's been thinking about its own role within this. Today,
the company is announcing a new tech training initiative is
in partnership with institutions like the US Department at the Treasury,
(32:51):
like rax Space as well to prepare the workforce with
generative AI skills and much more, a police to welcome
only more global Google Cloud Consulting Vice President Lee, I'm
really interested in this because you're working with the public sector,
think of the Treasury Department and thinking of educational foundations
and institutions as well as private companies.
Speaker 5 (33:13):
You're offering this all for free. Are you going to
be charging? Where is the reward for you?
Speaker 12 (33:19):
Well, for us, we see that we're really in this
enterprise AI era and we have the most amazing cloud technologies.
But it's beyond the technology. It's also about the people
and in my organization, we're responsible for skilling up the
workforce and skilling up our customers, and we see this
huge demand for skills and jobs. And if you look
at the job data out there, you can see there's
(33:41):
many hundreds of thousand, seven hundred thousand open roles for
cloud analysts, five hundred thousand roles open for cybersecurity, and
the World Economic Forum is quoting a million roles in
AI coming up. So it's a huge, huge opportunity for
individuals and we believe launching these programs we are today
both and the on ramps to further education and the
(34:03):
on remps to employment is our role in the middle
of that ecosystem.
Speaker 6 (34:08):
Lead just mechanically. How does this work in simple terms?
If you're working with a Treasury department.
Speaker 12 (34:14):
Yeah, So individuals can go over to Google Cloud Skills Boosts,
they can register and take these training programs in data analytics,
in cybersecurity, and in generative AI. When they pass those qualifications,
they're able to then jump start the first step in
the recruiting process for their partners. We've signed up with
so far so US Department of Treasury, Jack Henry and
(34:37):
rag Space. They enable them to get through that first
round of interviews in a kind of consolidated way and
move on through their process beyond that.
Speaker 3 (34:45):
Lee, What's really interesting some of the statistics the data
showing that the C suite.
Speaker 5 (34:50):
Has a lot of anxiety about this.
Speaker 3 (34:51):
They're worried about the lack of talent that they can
get their hands on and the roles you just articulated
that still need to be filled. How much dare I
ask does a C suite have the AI skills necessary
at the moment?
Speaker 12 (35:02):
You think, Yeah, very interesting question. We also run c
suite training programs here in Google Cloud, and we've been
the takeup of those has been immense in the past
six months. We're finding that is really progressing well. Now
this initiative is much more about a kind of grassroots
next generation of skills as people either coming into the
(35:22):
workforce or looking to transfer from their existing roles. So
we see a lot of people, you know, early in
their career looking to reskill. These programs are really, really, really,
really useful for that. The example I've got in my
head is one where you imagine Caroline, you're just exiting
the services, You're twenty five years old, you don't quite
know what you're really do you know you could if only, hey,
(35:44):
you could, you know, you could take these programs, you
could move into cybersecurity and these are really really good jobs.
The average, the median salary of a cybersecurity role in
the US is one hundred and thirty five thousand dollars.
You know, they are the sorts of roles that are
game changing for families and their ecosystem.
Speaker 6 (36:03):
Lee, I get yours roots explanation, but public sector cloud
is such competitive marketplace for you guys, right, Aws and
Azure also putting a lot of emphasis on public sector
spend does kind of literally grassroots training help you grow
some market share there. Jensen one talks all the time
about sovereign AI, but I'm yet to see any evidence that,
(36:27):
you know, government departments know they've got to get the
checkbook out.
Speaker 7 (36:31):
Well.
Speaker 12 (36:32):
I think what we're seeing is demand across the commercial sector,
the public sector, and from individuals for skills. And you know,
when I'm recruiting, you know, I'm looking for people that
have energy and passion and googling this, but I'm also
looking that they have the fundamental skills in AI or
data or cybersecurity, whichever the role is. So these programs
are really geared for the individual, and then obviously every
(36:55):
organization needs to determine what skills they need in their group.
Speaker 6 (37:00):
Energy more, passion, lean more, Google Cloud consulting. Vice President
appreciate the time of the conversation.
Speaker 4 (37:06):
Thank you.
Speaker 13 (37:14):
The President was very direct that this was a huge success,
that Israel can be proud that it doesn't stand alone
and that it has superior military capability. Iran utterly failed
in what they were trying to achieve, and that that
success alone sends a strong message to Iran and to
the region about Israel's place there.
Speaker 6 (37:37):
That was US National Security Council Communications Advisor John Kirby,
speaking earlier on Bloomberg Television. Were waiting for more remarks
from the White House as President Biden holds a bilateral
meeting with the Iraq's Prime minister joining us from Washington.
Bloomberg's Balance of Power hosts Joe Matthew and Joe, I mean,
the messaging from the administration to Israel has been take
(37:58):
the win.
Speaker 4 (37:59):
What else are we hearing? That's right?
Speaker 2 (38:01):
Take the win, and if you do decide to do something,
particularly if you want to overreach and attack Iran directly,
the US may not.
Speaker 4 (38:08):
Be there to support you.
Speaker 2 (38:10):
Having seen the US provide concerted support over the weekend,
it was quite remarkable, and this does require perspective, and
on both sides of things. John Kirby is right, this
was an extraordinary success. I'm not sure that all the
parties involved. Even though it was capable to block ninety
nine percent of the hardware that was thrown up in
the air by Iran the other night, not a single
(38:30):
UAV managed to infiltrate Israel. Of the thirty Iranian cruise
missiles launched, none of them broke into their airspace. But look,
it also requires some perspective on the other side as well.
The people of Israel now know that Iran is willing
to attack Israel directly, and they do believe in many
quarters that that justifies a response. Certainly benjaminett Ya, who
(38:52):
is hearing that from the right domestically here, the question
is whether the White House can keep Benjaminettania, who in
his government, restrained in whatever response it does pursue.
Speaker 5 (39:02):
Joe Matthew, we thank you so.
Speaker 3 (39:03):
Much, really important ability to break down the story and
push it forward for us. Meanwhile, look, we're going to
turn on focus to what's actually currently underway in New
York because Donald Trump has arrived at the courthouse this
morning where his first criminal trial is underway. She's expected
to last six to eight weeks. Let's get the latest
on the ground with re Meg's Kaylee lines. And it
is another first for Trump.
Speaker 14 (39:26):
Yeah, this is the first time in US history a
former president has been under criminal trial. These proceedings, of course,
begin today. He's charged with thirty four felon accounts of
falsifying business records related to alleged hush money payments made
to foreign star Stormy Daniels ahead of the twenty sixteen election.
Trump has pleaded not guilty. He denies all of these allegations,
and he right now is sitting upstairs in the fifteenth
(39:47):
story courtroom at the defense table as there is a
number of motions that they are dealing with. And actually
the judge has denied several motions already, including a motion
for a refusal and also the defense's attempts to block
entering certain things related to Trump's alleged extra merit to
affairs into evidence.
Speaker 5 (40:04):
The judge has.
Speaker 14 (40:05):
Ruled that the jury will be able to hear a
lot of that evidence that said, the jury is not
assembled yet. Once they get the role of these motions,
that is when jury selection will begin, and they'll try
to find twelve jurors and six alternates who can be
impartial unbiased in assessing this case, which of course relates
not just to a former president but the current presumptive
(40:25):
Republican presidential nominee. So highly consequential what begins today, But
this is a process that could last six to eight
weeks in total. It could take about two months for
this trial to.
Speaker 7 (40:34):
Reach a conclusion.
Speaker 5 (40:36):
Haiti Nines outside the courthouse in Manhattan. We thank you.
Speaker 3 (40:39):
And what's so interesting, Ed is almost as a proxy
for that betting on Trump potentially being the nominee and
indeed future president again in the United States, has been
his own social media company, which you are able to,
of course by shares and exposure to. But that social
media startup, Trump Media, has been down a lot today.
Speaker 4 (40:56):
Yeah.
Speaker 6 (40:56):
Part of that I think is partly due to an
offering in some markets. But I was listening to the
radio and Bloomberg Radio surveillance on the way in, and
it's like a proxy. I think you're right that whatever
happens in that trial and Kaylee will be on the
ground for us. You kind of infer your thinking about
President Trump from it in this race.
Speaker 3 (41:17):
Yeah, parent are Truth Social, which is Trump Minia and
Technology Group filed to register shares we understand, so which
of course are including those link to warrants. That's why
you're getting a supply side pressure coming on in the
share price. But notably, it has been down about what
sixty percent from its highs after it did did des
back and has been publicly trading as Trump Media and
Technology Group.
Speaker 5 (41:36):
Meanwhile, though, we've got to go back to.
Speaker 3 (41:37):
Some key technology stories, and you're the person behind one
of the main ones, Tesla, just bringing us, as you
raced in this morning, the ability to report on what's
happening with executives leaving.
Speaker 6 (41:46):
Yeah, it's hard to know if the downward pressure on
the stock is the ten percent layoffs. Actually I'm hearing
it's much deeper than ten percent, or Drew Baglino and
Rowan Beateel leaving. Think about the intellectual capital that's left
Zach kirk Cohn last August, the Chips leadership that left
earlier this year.
Speaker 4 (42:03):
Musc's taking an X to talk about it.
Speaker 6 (42:05):
Caro, you know that It's interesting why did they time
it this way, the executives if it wasn't linked to
the layoffs. I don't have the answer for that.
Speaker 3 (42:12):
And this next phase of growth that everyone keeps harnessing
the idea that we are.
Speaker 4 (42:17):
In between these new between two weeks.
Speaker 5 (42:19):
Yeah, but then are.
Speaker 3 (42:20):
We if we were likely to be pulling back from
a cheaper model and more focusing on robotaxis.
Speaker 6 (42:25):
But what I did here is that whatever the reasons
for Baglino's departure, things are actually.
Speaker 4 (42:30):
Going very well in planning for that next stage of growth.
Speaker 6 (42:33):
I heard forty six eighty, for example, is really ramping nicely.
So again, people's reasons are their own, but clearly the
market and our readers are paying attention this morning.
Speaker 3 (42:43):
There's also, of course, the ongoing ev context. That is
not a putty picture right now? That does it for
this edition of blueg Technology.
Speaker 5 (42:51):
Boy, it was a big one.
Speaker 4 (42:53):
Yeah, so much to recap on the podcast. You know
where to find it. We're publishing into Apple's Spotify and iHeart.
Of course the pod is all also on the Bloomberg platforms.
Speaker 6 (43:02):
Day one of what is going to be a big
week from New York City and San Francisco.
Speaker 4 (43:06):
This is Bloomberg Technology,
From Marhard where Innovation of Money and Power Collie in
Silicon Valley, NBN.
Speaker 2 (00:07):
This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
Speaker 3 (00:25):
I'm Caroline Hyde a Bloomberg's World Headquarters in New York
and I met Ludlow in San Francisco.
Speaker 4 (00:29):
This is Bloomberg Technology.
Speaker 5 (00:31):
Coming up. We'll bring you the latest updates from the
Middle East.
Speaker 3 (00:34):
That's after Iran launched missiles and roans over the weekend
into Israel, the US, and Europe.
Speaker 5 (00:39):
They ramp up calls for Israeli restraint.
Speaker 6 (00:42):
Full coverage ahead plus shares of Tesla slump amid the
company's plans to slash ten percent of its global workforce,
prompting senior executives to depart the company.
Speaker 4 (00:52):
We had the details and Apple.
Speaker 3 (00:54):
It faces its worst liphone slump since Covid as a
company faces increased.
Speaker 5 (00:58):
Competition in China.
Speaker 3 (00:59):
We'll discuss that and so much more throughout this hour,
but first we turn our attention to a complex geopolitical
and macroeconomic picture that's being painted today.
Speaker 5 (01:07):
Now.
Speaker 3 (01:07):
The pullerhead really is the fact that Naslak is currently
back in the red. We were managing to push higher
on stocks but certainly the bond market field or full
effect of actually a stronger, more resilient macroeconomic picture in
the United States coming from retail sales that were far
faster than had been anticipated. But on the flip side
is geopolitics is a concern about, of course, an unprecedented
(01:28):
attack coming from Iran to Israel and what that really
means in terms of actually dialing up or cooling of
some of those geopolitical anxieties, notably oil is on the
lower side that drags the Bloomerg commodity index down. But
remember there's actually added sanctions on Russian movement of metals
into the LME at the moment, and that's been moving
around aluminium and some other.
Speaker 5 (01:48):
Key metals to be keeping it on.
Speaker 3 (01:50):
So complex going on in the commodity space as well,
but let's move it on as we try to really
anticipate which way risk assets are going to be going.
One that was in full effect because ultimately it was
the when you ascasset that was really able to be
traded at the time of those initial reports, as many
had anticipated an attack coming from Iran into Israel. But
we see the volatility that was in display when it
(02:10):
came to bitcoin on Saturday afternoon plumbting.
Speaker 5 (02:13):
We now recover some of that.
Speaker 3 (02:14):
We're still off by more than four percent over the
course of a three day trading period ed. We're currently
at sixty three nine hundred of thereabouts.
Speaker 6 (02:20):
But what are you watching on the micro Tesla? It's
a big one. I broke the story this morning that
Drew Baglino, who led powertrain and energy at Tesla, one
of only four named executive officers, has resigned and left
the company. The stock near session lows down three point
three percent. We also confirmed Elon Muskers told staff that
(02:42):
ten percent of the workforce will be cut in pursuit
of cost reduction, productivity, and what he called duplicate rolls.
We'll get all the details later from the Bloomberg team.
The other big one is Apple. IDC data showed shipments
of about fifty million iPhones in the first quarter, but
that's down ten percent year on year.
Speaker 4 (03:01):
Now that's third.
Speaker 6 (03:02):
Party data, and it's not just an Apple story. With
the stockdown eight tens of one percent, it's a story
about China's domestic smartphone makers having success growing market share
in a really key market. We will speak to bloom
those Mark German because it's complicated, but Apple is lower,
whether that's cause or not.
Speaker 4 (03:20):
Who knows.
Speaker 6 (03:21):
A lot going on in the world of technology this morning,
but also a lot of news around the world.
Speaker 3 (03:25):
Yeah, and let's get back to it, ed, because Iran's
attack on Israel is what many are talking of. Israel
and its allies intercepted the overwhelming majority of more than
three hundred missiles drones fired by Iran. Joining US now
from Tel Aviv is Our Israel. You're O chief and
senior editor Ethan Rohner, and we thank you for your time.
Speaker 5 (03:42):
Ethan.
Speaker 3 (03:43):
Well, probably how is it being felt and digested in
Israel right now?
Speaker 7 (03:51):
Yeah, that's a great question.
Speaker 8 (03:52):
I mean, I think that the overall senses of relief because,
as you said, of three hundred and fifty projectiles, including
one hundred and twenty ballistic missiles that come here in
eight or ten minutes from around the vast majority, the
overwhelming majority, were stopped before they got here. They were
about half a dozen that got through to a military
(04:13):
base in Israel. They didn't do much damage, but they
did hit and so there's a kind of a mixed
feeling of well, we got them, we don't nobody was killed.
But but there's a seven year old girl fighting for
a live shrapnel that hit her in the south. But
the general senses this could have been much much worse.
So we can we Israel can take its time to decide.
Speaker 5 (04:35):
What to do next.
Speaker 8 (04:35):
But there is a a rubicon that's been crossed. I mean,
we we have for the very first time in nearly
four decades as Israel taken direct hits from missiles of
this kind, and the first time ever in Thish what
has been a shadow war between Israel and Iran emerged
from the shadows. So we're in a new era, and
it's not clear what that means.
Speaker 6 (04:58):
Ething late to the program, we're going to talk a
little bit about the sort of coalition response. You know,
Israel made those interceptions in conjunction with the United States
and the United Kingdom. I'd also like to learn a
little bit about the kind of operational response on the
ground in Israel, what it is happening in the streets,
what the government is telling its citizens of where we stand.
Speaker 8 (05:23):
So at the moment, in fact, there is a sense
of calm. The government issued a statement that they were
going to reopen the schools and the sort of day
camps that they had closed on Saturday night in anticipation
of this attack. So everything is back to normal, I
think it's fair to say. And by the way, the
(05:45):
Iranians also reopened their airspace, so there is no sense
that there's going to be a continuation of this war
in the coming three days. On the other hand, the
Israeli cabinet met last night and met again tonight in
order to discuss what kind of sponse it needs to have,
and those on the far right are urging a very
vigorous response, a crushing attack, as they put it. It's
(06:09):
not clear if they're going to have their way. It
doesn't seem so, because it does feel that the embrace
of the United States, the United Kingdom in France of
Israel at this point has been a warm bath for
Israelis after many weeks of hostility because of their war
in Gaza. At the same time, you see, the Israelis
have two audiences. They worry about these that we just
(06:30):
talked about, and then their enemies that it's just Balahamas
and Iran, and they fear that any lack of reaction
will be perceived as weakness, and so there is a
sense that they must react.
Speaker 7 (06:42):
The question is when and.
Speaker 6 (06:43):
How Bloomberg's even brunna on the ground until they're really
grateful for your time on the ground reporting as well,
and we have a big audience in this show in
Europe and the emir regionable broadly. I point out the
easy Jet, one of the airlines is an example, has
canceled flights to his through April twenty first, so there's
a kind of business impact.
Speaker 4 (07:03):
There as well.
Speaker 6 (07:04):
Let's go from Israel to Washington, DC and bring in
Bloomberg National security reporter Nick Wadhams. Nick I was talking
to Ethan about the kind of coalition response that United
States was involved. The United Kingdom was involved in part
because Iran had given heads up almost on their actions.
My understanding is Biden has been in touch with the
Israeli government quite frequently. What we know from the US
(07:27):
side at this stage.
Speaker 9 (07:29):
Well, what we're hearing from the administration is essentially that
they want Israel to put the brakes on any sort
of response. So we've been told the view from the
White House is listen, Israel, take the win. Your air
defenses did an extraordinary job deflecting and rebuffing about ninety
(07:49):
nine percent of those incoming drones and missiles, and there
is no need for an immediate response. Obviously, as Ethan
just said, the pressure on Prime Minister Benjamin Netnya, who
is coming very much from the other direction as well.
So looking ahead for the next few days, what we're
really going to see here is a good reflection on
the limits of US leverage over Prime Minister Netnya, who
(08:13):
President Biden could not have been more clear about what
he wants.
Speaker 4 (08:17):
To see next, which is de escalation.
Speaker 9 (08:19):
The US does not want to be pulled in deeper
into this conflict. They don't want this to turn into
even a bigger conflagration, and they want Prime Minister Benjamin
Netnyah to hold fire. Whether he listens to that advice
is another thing entirely.
Speaker 3 (08:35):
For now, rightly or wrongween the market, and that is
often what we focus in on here.
Speaker 5 (08:40):
A Boomberg has.
Speaker 3 (08:41):
Been deeming this to be something that's containable. As of
the moment, Nick, where do we have to align our
sites now? Is it thinking of the next statement that
we do get from Biden. We anticipate a conversation a
press conference as soon as twelve o'clock that's right.
Speaker 9 (08:56):
So I mean, will really be looking at what the
tone is from the president and from other officials in
the administration. Are they projecting unity? Is there more sense
of those fractures that had emerged in recent weeks with Israel?
Do we have a sense that these two governments are
diverging in their perspectives on what the outcome will be here?
(09:19):
I mean, the attack by Iran could have been so
much worse. I think you're seeing in the market in
some ways a sense of relief that Israel repelled those
As Ethan mentioned, there had been no deaths and fairly
limited destruction. But what happens if Iran decides to respond
yet again in response to a potential Israeli retaliation. So
(09:40):
there's a lot of fear that there could be an
escalatory spiral that gets to a situation that neither side
can control.
Speaker 3 (09:46):
N it Wardens, thank you for giving us the context
and keeping us up to speed.
Speaker 4 (09:59):
Let's talk about Tesla.
Speaker 6 (10:00):
The ev maker is going to cut ten percent of
its workforce after a slowdown in demand, Elon Musk preparing
the company for the next phase of growth.
Speaker 4 (10:10):
We also reported this.
Speaker 6 (10:11):
Morning that two key executives have left Tesla in the
last twenty four hours. Drew Baglino, who's been at Tesla
for eighteen years and led everything to do with powertrain
energy storage, resigned, is what I'm told by a source,
and he confirmed that later on in a post. Rowan
Betel is basically the public policy chief in many ways
(10:32):
the kind of devacta facto voice piece of Tesla on
social media. He has also left the company. Let's bring
in Bloombog's Global Autoza Craig Trudell.
Speaker 4 (10:42):
Craig.
Speaker 6 (10:43):
It was a bit of a long night or an
early morning, depending on where you were around the world,
but let's start with Drew Baglino, one of only four
named executive officers at Tesla. I thought this was a surprise,
and what sources told me is that he resigned. He
wasn't laid off off as part of the ten percent
KA What else do you unite?
Speaker 10 (11:05):
Yeah, I know less than you, you know, but I
do have to sort of speculate about, you know, the
extent to which this may be about, you know, a
difference of opinion on the direction of the company. This
you know, this these this news comes shortly after reports
that the company is you know, maybe putting aside its
(11:26):
work on a cheaper vehicle and focusing efforts on a robotaxi.
I think Elon Musk, you know, at first called that
a report by Reuter's false, and then you know, seem
to sort of lend credence to it by scheduling an
introduction of a robotaxi months from now, which you know,
sort of suggests that you know, he's focused on that,
(11:47):
and you know that raises questions about whether whether Baglino
thought that's the right move, whether Rohan Patel thinks that's
the right move. After all, he's going to be the
person or would have been the person in Washington who
would have to sort of justify that to regulators, and
whether or not Tesla is really ready to put that
(12:08):
forward is a question after years and years of the
company talking about having robotaxis, or at least Musk talking
about having robotaxis yes, when they haven't.
Speaker 3 (12:20):
All of this is sort of trying to be a
level of prioritization or anxiety that is among investors at
the moment. Many would say, Okay, cutting down on expenses,
on costs is something that is necessary in the context
of EV sales. More broadly, Craig. What could be therefore
be really unnerving the investor.
Speaker 5 (12:39):
Base right now when you have SVPs leaving. Is it
more the.
Speaker 3 (12:42):
Concern about the handing over of power ultimately any sort
of fact that Musk currently leads and has done since
two thousand and eight.
Speaker 10 (12:52):
Yeah, I mean, I think it's this concern about, you know,
not knowing what the plan is, right, and this is
not just a store that has only surfaced lately.
Speaker 11 (13:02):
You know.
Speaker 10 (13:03):
We go back to the Walter Isaacson biography months ago,
and one of the more compelling bits within that book
was this idea that there was 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.
Speaker 7 (13:20):
And you had.
Speaker 10 (13:22):
Within that book, you know, this really compelling section of
you know, executives having to kind of talk Musk out
of this idea that they could just you know, design
the car without a steering wheel and count on the
idea that the technology was ready.
Speaker 7 (13:36):
And I think that's something.
Speaker 10 (13:38):
That you know, we've seen for for some time, This
idea that you know, Musk has has really 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. And what other executives have said, including
you know, engineers that have had to testify in lawsuits
related to people losing their lives because they too much
(14:00):
trust into Tesla's driver assistance system. So this is something
that's really tricky if you're an executive who has to
kind of, you know, square that circle.
Speaker 6 (14:11):
Yeah, Craig, quickly, I think let's just re recap the basics.
Ten percent of the workforce to be cut. How many
people is that?
Speaker 4 (14:18):
Where is it?
Speaker 10 (14:20):
Yeah, So this is a company that ended last year
with over one hundred and forty thousand people. So assuming
this is company wide, we know it's a global according
to Musk's email to staff, that would be more than
fourteen thousand people. We're careful on that because Musk has
been a little bit all over the place with his
messaging in the past when he's made job cuts.
Speaker 3 (14:40):
Craig Trudell, we thank you so much. It's just been
a phenomenal amount of reporting coming from both of you, gentlemen,
and so thank you very much for setting the context. Meanwhile,
coming up, Apple iPhone shipments falling ten percent in the
March quarter, making it the worst sales slump since COVID.
We're going to bring you the details next. Another key
points drag on these benchmin Edward. You're watching on the
(15:01):
micro level.
Speaker 4 (15:01):
Two little bit of MNA.
Speaker 6 (15:03):
Monday, Bloomberg reported that sales forces, according sources, looking at
a deal for Informatica, and it's all about data capabilities.
The stock down more than five percent on it. The
street kind of likes it, but it's a deal. We're
waiting on confirmation on Bloomberg said it could be reached
this month, so let's stay tuned for that as we go.
(15:25):
This is Bloomberg Technology.
Speaker 3 (15:42):
Apple, it's facing its worst iPhone slump since COVID as
competition in the Chinese market really does heat up now.
Third quarter shipments are apparently sliding worse than expected, almost
ten percent, as the tech giant delivered fifty point one
million phones, falling shy of Anna estemates of fifty one
point seven mins. And Bloomberg's Mark Gumman joins us now
with the context of who's providing us this data and
(16:05):
what it means about Apple versus the other competitors.
Speaker 11 (16:10):
Yeah, so itc puts up their quarterly reports on smartphone shipments,
and of course these are their analysis based insights into
how many units for ships, so they don't know for sure.
We'll get a better idea on May second, when Apple
announces its earnings report, and then we'll get a better
idea from the other phonemakers when they announce their earnings reports.
But IDC is usually on target in terms of a
(16:33):
general range or in terms of the overall theme, and
the overall theme this time around is a nearly ten
percent shipment decline on an annual basis for Apple. It's
the most significant decline of any of the phonemakers they track.
It indicates that Samsung is back in the number one
global smartphone sales position, and it indicates that sales from
(16:56):
some Chinese brands, one called Transition into particular, within over
eighty percent year of a 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 the slump going on right now for
the company, and it seems like most of it is
(17:17):
China based, so we'll have to wait until May two
to know for sure.
Speaker 6 (17:20):
However, all right, I believe most Mark, German chief correspondent
covering Apple.
Speaker 4 (17:24):
Thank you.
Speaker 6 (17:24):
Let's keep the conversation going and bringing in Fionas and
Kotta now who's senior market analyst at City Index, for
her take on Apple, and Mark summed up the IDC
data very well. You either put emphasis on the Apple
specific data or you put emphasis on the market share
data coming from the Chinese handset makers and how they
had gains in sales. Where does your mind goes to first, Fiona, do.
Speaker 4 (17:50):
You know what?
Speaker 1 (17:50):
I think it's a really good idea to actually look
at these two bits of data together because if you've
got Apple falling and yet global smartphone shipments elsewhere increasing,
I think that makes it an even more dramatically difficult
position and picture for Apple. I mean, it really does
highlight I think the extent of the problems that the
(18:12):
Apple is facing, particularly surrounding the iPhone.
Speaker 5 (18:15):
And I think I mean, obviously.
Speaker 1 (18:16):
China here is a very big story. There is a
lot of competition that Apple is facing in China.
Speaker 5 (18:23):
But I think there's also another side to this as well.
Speaker 1 (18:25):
I just feel that Apple is really behind just as
Sara as Innovation is concerned, as Sarah's AI is concerned
and all that's also playing out in the share price,
which has really had a tough start to twenty twenty.
Speaker 3 (18:38):
Four two point seven trillion dollar market cap still but
as along with Tesla are two key stories today, these
two names in this so called Magnificent seven have been
anything but magnificent. It feels like in the last month
or so, certainly beginning of this year, Fiona, can Apple
win back yours and other investors' hearts and minds if
(18:58):
they are going to be able to show, look, we've
got AI within the M four process, that we're going
to be able to have it and you know, sometimes
they're known to be a little bit slower but getting
it right.
Speaker 5 (19:07):
Yeah, that's right.
Speaker 1 (19:07):
I mean, definitely a little bit slower. They feel like
they're very slow to the AI party right now, and
that's been sort of you know, punished by They've been
punished by investors, and that I think, you know, has
been part of that sell off that we've seen. I
think there is a potential for this to turn around.
I don't think this is the end of the line
(19:28):
at all for Apple. I think, you know, we could
see a good turnaround as long as they get their
AI products really spot on. I think also sort of,
you know, the geographical diversification into India is an area
that again could be very interesting for Apple as it
moves away from China. But at the end of the day,
China is a massive in market and it's also a
(19:49):
very important market. So it's going to be very interesting
to see whether Apple can actually turn this around quickly
without any support from really from China.
Speaker 6 (19:58):
Yeah, if you last night, Caroline and I regroup with
a team and we're like, you know, what's the story
going to be Monday? It looked like Apple, we had
the geopolitics of what's happening in the Middle East, and
then Tesla, and I'm trying to find a commonality between
all of them. I think that the commonality is should
we be talking more about the health of the global
(20:19):
economy right now, particularly for consumer facing technology?
Speaker 5 (20:23):
Yes, exactly.
Speaker 1 (20:24):
So that's a really really important point here as well.
I think the macro backdrop for these stocks is just
not ideal right now. You know, if we have a
look at where we are speaking as far as macro
picture is concerned, it's not smooth sailing at all.
Speaker 5 (20:39):
For the consumer.
Speaker 1 (20:40):
You know, we've got the prospect of the Federal Reserve
keeping interest rates high for longer after we've seen those
hotter than expected inflation figures last week. But then saying that,
we've also seen that the retail sales in the US
are holding up. But I think, you know, when you've
got financing costs so high in the US, that does
obviously impact those that are purchasing cars their ability to
(21:01):
be able to get financing or even desire to get financing.
But also when you've got squeeze on households, you know,
big expensive items such as the latest iPhones are going
to be perhaps items which aren't necessarily top of the list.
So you know, I do think the macro backdrop has
a lot to play here as well.
Speaker 3 (21:16):
If you if a client cause right now, do you
say take risks off the table or do you say
stay in equities even though they're near records.
Speaker 1 (21:24):
Oh, it's a good question, you know. I think 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 geographic geopolitical tensions start to calm again,
then I think there is a potential there. But you know,
(21:44):
we've got earning season. We're just ramping up earning season now,
and I think that's going to be a good distraction
for the market to be able to sort of have
a look what's actually going on, to see whether the
lofty valuations are actually supported by the fundamentals.
Speaker 3 (21:59):
Gold and Sachs example, managing to be and talking up
AI City Index Senior market analyst Fiuna Sincota.
Speaker 6 (22:13):
Welcome back to Bloomberg Technology. Ed Ludlow in San Francisco.
Speaker 5 (22:16):
Karen Hid right here in New York.
Speaker 3 (22:18):
Let's get you quick check on these markets, because there
is a complicated context to what's going on in the
markets right now. Whether it's a macro picture that shows
resiliency in a US economy, those retail sales still showing
real strength of a US consumer. And then the geopolitical
situation we currently find ourselves trying to understand get a
grips as to where we push forward with Israel and Iran,
an unprecedented attack coming from Iran on Israel. Over the
(22:40):
course of the weekend, NASDAK pushing back into the green.
We had been in the red a little bit on
the Nasdaq benchmark. More broadly, as some of the anxiety
was still there to be seen within the markets. But
Apple actually and indeed Tesla key points drags on the
Nasdaq one hundred. More broadly, Apple ORF by six ten percent.
We're worried about market share, particularly as competition builds up
over in China, and the IDC numbers show that Apple
(23:02):
has had its worth quarter in terms of sales since
back in the COVID days. Tesla off by two point
eight percent. This is down to your reporting ed more
broadly on the fact that executives are leaving an indeed
ten percent of the workforce looking to be removed as
they really try and focus on a market that has
been under pressure of late.
Speaker 5 (23:20):
That's off by two point eight percent.
Speaker 3 (23:22):
But we want to move on to what happened when
it comes to risk assets over the course of the weekend.
Speaker 5 (23:26):
This is a geo political story that we need to
shine a.
Speaker 3 (23:28):
Light on in terms of Bitcoin sold off hard on
Saturday afternoon. Why it's one of the only risk assets
that you were able to trade when you first learned that. Indeed,
Iran has lived up to it to what it had
been telling certain members of leaders across the world that
they would indeed be looking to attack Israel, and we
saw it hit some sixty one thousand dollars at one point.
(23:50):
We're off by three point six percent over the last
three trading days, and I think that's where we try
to dissect there is ongoing volatility in an asset like
crypto and bitcoin, But then where are the applications in
the here and the now fabian assets here drill down
on what he's seeing, is Managing director and global headed
Digital Economy over at Moody's Ratings.
Speaker 5 (24:08):
You're someone who's been thinking about.
Speaker 3 (24:10):
The harving the so called fundamentals of bitcoin, the way
in which we can adopt blockchain technology. But when you
look at the volatility as it it's still not a
store of value but ultimately a risk asset.
Speaker 5 (24:21):
How does that make your conversations harder?
Speaker 7 (24:24):
Well, it's actually very hard to guess the direction of
travel for bitcoin overall, because when you think about it,
it's the value of it is not driven by clear
economic drivers and like other assets, so trying to predict
the value of bitcoin is like trying to predict people's start.
(24:45):
So it can be a lot of things. It could
be the macro environment, could be the dro political environment,
that could be many other things, And it could be
the having that's coming up probably at the end of
this week, which affects behaviors in particular people right now
bidding up or down, and it creates more volatility, which
is to be expected, and it has nothing to do
(25:07):
with kind of the long term evolution of the price,
but at least as of now you're seeing volatility.
Speaker 3 (25:12):
Yeah, many would say, look, if it's meant to be
a store of value, if it's meant to be in
some way fight against inflation, you would have thought, in
a risk averse worrying time and geopolitics, you will be
in bitcoin rather than setting off. But then people say, look,
this is a risk asset that you could say, show
your anxiety and for the course of the weekend. So
when you say that you shouldn't be predicting it on
a day to day basis, How then do you ensure
(25:34):
that people are thinking about digitization, about real world assets
becoming tokenized when people are still fundamentally trying to work
out whether they should even be having one or two
percent of their wealth in cryptocurrency.
Speaker 7 (25:45):
So that's a great question, and those are very different things.
So I would say cryptocurrencies per se are essentially very speculative.
People are bedding up down, as I said, with probably
some upward pressure post having at least you believe that
the past is a good proxy for the future. But traditionally,
(26:06):
I would say it started with crypto. It started with
bitcoin and ether and others, and then what we observed
was that financial institutions and institual investors in general were
very cautious traditionally about cryptocurrencies per se. So you started
to see like a different segment of the digital finance ecosystem.
There was more about using the technology underlying bitcoin and
(26:29):
other assets and reusing the technology to repipe financial markets
and the global economy to make it potentially better, faster,
and more efficient. So crypto was mainly for retail investors,
and the rest of digital finance mainly for institual investors.
And that's really what we've been keeping an eye on
(26:52):
and what we'll probably reshape financial markets going forward. Now
what's interesting is recent the use of convergence in the
sense that institutional investors, again that were cautious, would say
instinctively it was not even regulation, even though it played
a part of it. This suddenly decided that it was
(27:14):
time to get into the crypto sphere as well, in
particular with the approval of bitcoin ETFs recently, and so
now you're seeing institutional investors in both that kind of
took anization space, which has many benefits, and also in
the crypto currency space where they were not involved for
(27:35):
a long time A Fabian.
Speaker 6 (27:37):
I'm fascinated by the credit rating perspective on this. You
talk about harving and then you think about the limit
on supply long term infinitely of bitcoin, but in moments
like the weekend, in geopolitical crisis or risk of sentiment,
there's just clear evidence it's a liquid market. So if
you are approaching this from a credit rating, the effective
(28:00):
what is the conclusion you draw?
Speaker 7 (28:02):
All right, So let me clary if at one point
here a cryptocurrency enough itself and become in particular, there's
no credit risk associated with it. There's no promise associated
with the cryptocurrency, so you can't really rate whether the
issue of a cryptocurrency will meet its promise and if
(28:24):
it doesn't, by how much you gould miss it, which
is what credit ratings are intended to do. So there's
no there's no credit risk persuit with the cryptocurrency. The
reason we're keeping an eye on them and on Becoming
in particular, is because you know that institutions out there, governments, corporations,
and others are invested in cryptocurrencies. So we want to
(28:45):
keep track of whether it could impact their credit risk
because they have that asset in their portfolio, for instance.
And we also want to keep track of things like
market contagion risk that could affect one way or the
other from the crypto world into traditional finance, or even
the other around, from traditional finance into a crypto currency.
So it is an asset class that is, you know,
(29:07):
that's 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.
Speaker 6 (29:21):
But there is a connection for secondary markets and the
underlying technology, which is blockchain. That's something you look at
very quickly. Explain your work.
Speaker 7 (29:29):
There, correct, So the financial markets are likely being reshaped
by technologies that look like bitcoin, that look like that
looks technologies that look like blockchain. Sorry, And the reason
is that those technologies make processes a lot more efficient.
So I'm going to give you an example to illustrate
asset organization Caroline mentioned that a minute ago. It's really
(29:52):
the process of turning real world assets into a digital
stamp on a blockchain PLO. And because it's become a
digital step, it's very easy to manage to trade. And
those assets that are being tokenized could be anything from
a bond or stock, or real estate or art, and
(30:14):
so you transfer all the legal rights, in particular the
ownership rights that come with the assets. You push that
into that digital token that you can trade and manage efficiently.
So it makes it a lot more efficient to manage
and trade. In particular, you can settle super quickly, it
could be even just a immediate or fraction of a
second to settle payments on that blockchain. You can track
(30:38):
and control everything that's happening, So it makes it better
from a risk and complainants perspective, and also yes, really
creates extra liquidity and new opportunities to find funding and
to invest overalls. Think about a building, for instance, You
can be very hard to buy that building alone. But
(30:58):
if you can tokenize and cut these talkings into small
trunks that many people can invest in suddenly, right, and
it makes it as easier to access.
Speaker 6 (31:07):
FABI anastic deep analysis Managing director and global headed Digital
Economy at Moeting's ratings.
Speaker 4 (31:12):
We're grateful with your time.
Speaker 6 (31:12):
Coming up on the show, we're going to be joined
by Google Clouds lean more on the company's new training
initiative in generative AI, cybersecurity and data analytics analytics. That's
coming right up. Stay tuned. This is Bluebird Technology. Okay,
(31:38):
quick talking tech. There's a lot going on in the news.
First start, the BIND Administration plans to award Samsum as
much as six point four billion dollars in grants.
Speaker 4 (31:47):
To increase chip production in Texas.
Speaker 6 (31:49):
This is part of US efforts to bolster domestic semiconductor manufacturing.
The southern Korean company plans to invest more than forty
billion dollars overall. Plus Entry and Horowitz close seven point
two billion dollars for its newest set of funds on Friday,
According to an Axios report, the firm beat its own
fundraising goal of six point nine billion, with that capital
(32:10):
aimed for its growth fund. And open Ai named the
former president of aws's Japan to Down Nagasaki to spearhead
its push to enterprise clients in the world's fourth largest economy.
Open Ai is opening an office in Tokyo, is it
releases a custom GPT form model.
Speaker 4 (32:28):
Catering to Japanese language users.
Speaker 3 (32:31):
Caroline, and let's get two more broadly in AI context
right now, because we're all thinking about how to reskill
and companies are thinking about how to reskal their own employees.
At the moment, it's also been the focus of Oh
Google Cloud, it's been thinking about its own role within this. Today,
the company is announcing a new tech training initiative is
in partnership with institutions like the US Department at the Treasury,
(32:51):
like rax Space as well to prepare the workforce with
generative AI skills and much more, a police to welcome
only more global Google Cloud Consulting Vice President Lee, I'm
really interested in this because you're working with the public sector,
think of the Treasury Department and thinking of educational foundations
and institutions as well as private companies.
Speaker 5 (33:13):
You're offering this all for free. Are you going to
be charging? Where is the reward for you?
Speaker 12 (33:19):
Well, for us, we see that we're really in this
enterprise AI era and we have the most amazing cloud technologies.
But it's beyond the technology. It's also about the people
and in my organization, we're responsible for skilling up the
workforce and skilling up our customers, and we see this
huge demand for skills and jobs. And if you look
at the job data out there, you can see there's
(33:41):
many hundreds of thousand, seven hundred thousand open roles for
cloud analysts, five hundred thousand roles open for cybersecurity, and
the World Economic Forum is quoting a million roles in
AI coming up. So it's a huge, huge opportunity for
individuals and we believe launching these programs we are today
both and the on ramps to further education and the
(34:03):
on remps to employment is our role in the middle
of that ecosystem.
Speaker 6 (34:08):
Lead just mechanically. How does this work in simple terms?
If you're working with a Treasury department.
Speaker 12 (34:14):
Yeah, So individuals can go over to Google Cloud Skills Boosts,
they can register and take these training programs in data analytics,
in cybersecurity, and in generative AI. When they pass those qualifications,
they're able to then jump start the first step in
the recruiting process for their partners. We've signed up with
so far so US Department of Treasury, Jack Henry and
(34:37):
rag Space. They enable them to get through that first
round of interviews in a kind of consolidated way and
move on through their process beyond that.
Speaker 3 (34:45):
Lee, What's really interesting some of the statistics the data
showing that the C suite.
Speaker 5 (34:50):
Has a lot of anxiety about this.
Speaker 3 (34:51):
They're worried about the lack of talent that they can
get their hands on and the roles you just articulated
that still need to be filled. How much dare I
ask does a C suite have the AI skills necessary
at the moment?
Speaker 12 (35:02):
You think, Yeah, very interesting question. We also run c
suite training programs here in Google Cloud, and we've been
the takeup of those has been immense in the past
six months. We're finding that is really progressing well. Now
this initiative is much more about a kind of grassroots
next generation of skills as people either coming into the
(35:22):
workforce or looking to transfer from their existing roles. So
we see a lot of people, you know, early in
their career looking to reskill. These programs are really, really, really,
really useful for that. The example I've got in my
head is one where you imagine Caroline, you're just exiting
the services, You're twenty five years old, you don't quite
know what you're really do you know you could if only, hey,
(35:44):
you could, you know, you could take these programs, you
could move into cybersecurity and these are really really good jobs.
The average, the median salary of a cybersecurity role in
the US is one hundred and thirty five thousand dollars.
You know, they are the sorts of roles that are
game changing for families and their ecosystem.
Speaker 6 (36:03):
Lee, I get yours roots explanation, but public sector cloud
is such competitive marketplace for you guys, right, Aws and
Azure also putting a lot of emphasis on public sector
spend does kind of literally grassroots training help you grow
some market share there. Jensen one talks all the time
about sovereign AI, but I'm yet to see any evidence that,
(36:27):
you know, government departments know they've got to get the
checkbook out.
Speaker 7 (36:31):
Well.
Speaker 12 (36:32):
I think what we're seeing is demand across the commercial sector,
the public sector, and from individuals for skills. And you know,
when I'm recruiting, you know, I'm looking for people that
have energy and passion and googling this, but I'm also
looking that they have the fundamental skills in AI or
data or cybersecurity, whichever the role is. So these programs
are really geared for the individual, and then obviously every
(36:55):
organization needs to determine what skills they need in their group.
Speaker 6 (37:00):
Energy more, passion, lean more, Google Cloud consulting. Vice President
appreciate the time of the conversation.
Speaker 4 (37:06):
Thank you.
Speaker 13 (37:14):
The President was very direct that this was a huge success,
that Israel can be proud that it doesn't stand alone
and that it has superior military capability. Iran utterly failed
in what they were trying to achieve, and that that
success alone sends a strong message to Iran and to
the region about Israel's place there.
Speaker 6 (37:37):
That was US National Security Council Communications Advisor John Kirby,
speaking earlier on Bloomberg Television. Were waiting for more remarks
from the White House as President Biden holds a bilateral
meeting with the Iraq's Prime minister joining us from Washington.
Bloomberg's Balance of Power hosts Joe Matthew and Joe, I mean,
the messaging from the administration to Israel has been take
(37:58):
the win.
Speaker 4 (37:59):
What else are we hearing? That's right?
Speaker 2 (38:01):
Take the win, and if you do decide to do something,
particularly if you want to overreach and attack Iran directly,
the US may not.
Speaker 4 (38:08):
Be there to support you.
Speaker 2 (38:10):
Having seen the US provide concerted support over the weekend,
it was quite remarkable, and this does require perspective, and
on both sides of things. John Kirby is right, this
was an extraordinary success. I'm not sure that all the
parties involved. Even though it was capable to block ninety
nine percent of the hardware that was thrown up in
the air by Iran the other night, not a single
(38:30):
UAV managed to infiltrate Israel. Of the thirty Iranian cruise
missiles launched, none of them broke into their airspace. But look,
it also requires some perspective on the other side as well.
The people of Israel now know that Iran is willing
to attack Israel directly, and they do believe in many
quarters that that justifies a response. Certainly benjaminett Ya, who
(38:52):
is hearing that from the right domestically here, the question
is whether the White House can keep Benjaminettania, who in
his government, restrained in whatever response it does pursue.
Speaker 5 (39:02):
Joe Matthew, we thank you so.
Speaker 3 (39:03):
Much, really important ability to break down the story and
push it forward for us. Meanwhile, look, we're going to
turn on focus to what's actually currently underway in New
York because Donald Trump has arrived at the courthouse this
morning where his first criminal trial is underway. She's expected
to last six to eight weeks. Let's get the latest
on the ground with re Meg's Kaylee lines. And it
is another first for Trump.
Speaker 14 (39:26):
Yeah, this is the first time in US history a
former president has been under criminal trial. These proceedings, of course,
begin today. He's charged with thirty four felon accounts of
falsifying business records related to alleged hush money payments made
to foreign star Stormy Daniels ahead of the twenty sixteen election.
Trump has pleaded not guilty. He denies all of these allegations,
and he right now is sitting upstairs in the fifteenth
(39:47):
story courtroom at the defense table as there is a
number of motions that they are dealing with. And actually
the judge has denied several motions already, including a motion
for a refusal and also the defense's attempts to block
entering certain things related to Trump's alleged extra merit to
affairs into evidence.
Speaker 5 (40:04):
The judge has.
Speaker 14 (40:05):
Ruled that the jury will be able to hear a
lot of that evidence that said, the jury is not
assembled yet. Once they get the role of these motions,
that is when jury selection will begin, and they'll try
to find twelve jurors and six alternates who can be
impartial unbiased in assessing this case, which of course relates
not just to a former president but the current presumptive
(40:25):
Republican presidential nominee. So highly consequential what begins today, But
this is a process that could last six to eight
weeks in total. It could take about two months for
this trial to.
Speaker 7 (40:34):
Reach a conclusion.
Speaker 5 (40:36):
Haiti Nines outside the courthouse in Manhattan. We thank you.
Speaker 3 (40:39):
And what's so interesting, Ed is almost as a proxy
for that betting on Trump potentially being the nominee and
indeed future president again in the United States, has been
his own social media company, which you are able to,
of course by shares and exposure to. But that social
media startup, Trump Media, has been down a lot today.
Speaker 4 (40:56):
Yeah.
Speaker 6 (40:56):
Part of that I think is partly due to an
offering in some markets. But I was listening to the
radio and Bloomberg Radio surveillance on the way in, and
it's like a proxy. I think you're right that whatever
happens in that trial and Kaylee will be on the
ground for us. You kind of infer your thinking about
President Trump from it in this race.
Speaker 3 (41:17):
Yeah, parent are Truth Social, which is Trump Minia and
Technology Group filed to register shares we understand, so which
of course are including those link to warrants. That's why
you're getting a supply side pressure coming on in the
share price. But notably, it has been down about what
sixty percent from its highs after it did did des
back and has been publicly trading as Trump Media and
Technology Group.
Speaker 5 (41:36):
Meanwhile, though, we've got to go back to.
Speaker 3 (41:37):
Some key technology stories, and you're the person behind one
of the main ones, Tesla, just bringing us, as you
raced in this morning, the ability to report on what's
happening with executives leaving.
Speaker 6 (41:46):
Yeah, it's hard to know if the downward pressure on
the stock is the ten percent layoffs. Actually I'm hearing
it's much deeper than ten percent, or Drew Baglino and
Rowan Beateel leaving. Think about the intellectual capital that's left
Zach kirk Cohn last August, the Chips leadership that left
earlier this year.
Speaker 4 (42:03):
Musc's taking an X to talk about it.
Speaker 6 (42:05):
Caro, you know that It's interesting why did they time
it this way, the executives if it wasn't linked to
the layoffs. I don't have the answer for that.
Speaker 3 (42:12):
And this next phase of growth that everyone keeps harnessing
the idea that we are.
Speaker 4 (42:17):
In between these new between two weeks.
Speaker 5 (42:19):
Yeah, but then are.
Speaker 3 (42:20):
We if we were likely to be pulling back from
a cheaper model and more focusing on robotaxis.
Speaker 6 (42:25):
But what I did here is that whatever the reasons
for Baglino's departure, things are actually.
Speaker 4 (42:30):
Going very well in planning for that next stage of growth.
Speaker 6 (42:33):
I heard forty six eighty, for example, is really ramping nicely.
So again, people's reasons are their own, but clearly the
market and our readers are paying attention this morning.
Speaker 3 (42:43):
There's also, of course, the ongoing ev context. That is
not a putty picture right now? That does it for
this edition of blueg Technology.
Speaker 5 (42:51):
Boy, it was a big one.
Speaker 4 (42:53):
Yeah, so much to recap on the podcast. You know
where to find it. We're publishing into Apple's Spotify and iHeart.
Of course the pod is all also on the Bloomberg platforms.
Speaker 6 (43:02):
Day one of what is going to be a big
week from New York City and San Francisco.
Speaker 4 (43:06):
This is Bloomberg Technology,
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