We're from Marhard where innovation, money and power.

We're from Marhard where innovation, money and power.

Collie in Silicon Valley, NBN.

Collie in Silicon Valley, NBN.

This is Bloomberg Technology with Caroline Hide and Ed Ludlove.

This is Bloomberg Technology with Caroline Hide and Ed Ludlove.

IM Ed Ludlow in San Francisco.

IM Ed Ludlow in San Francisco.

Caroline Hides out today this is Bloombag Technology. China's semiconductor and electronics output drops in the first quarter as a bullish rebound in the economy is.

Caroline Hides out today this is Bloombag Technology. China's semiconductor and electronics output drops in the first quarter as a bullish rebound in the economy is.

At odds with a smartphone slow.

At odds with a smartphone slow.

Down, and Apple pushes higher as Tim Cook opens the iPhone maker's first store in India. We bring you the details from Mumbai and California, and in Europe, bench capitalists are on pace for their worst funding year since twenty fifteen. Race Capitals Alfred Trung joins US to talk private markets. Does less capital mean fewer checks being cut? Well, first, it's going to check on those market's move As Katie Greif found out in New York, Hi, Kittie Hi.

Down, and Apple pushes higher as Tim Cook opens the iPhone maker's first store in India. We bring you the details from Mumbai and California, and in Europe, bench capitalists are on pace for their worst funding year since twenty fifteen. Race Capitals Alfred Trung joins US to talk private markets. Does less capital mean fewer checks being cut? Well, first, it's going to check on those market's move As Katie Greif found out in New York, Hi, Kittie Hi.

Ed, well, the bid has disappeared from the equity market. You're looking at the S and P five hundred off by about two tenths of a percent. The same thing sort of goes for the NASAQ one hundred, those big tech names. It's the financials that are interesting today. We're actually off the session lows that sector down about three tenths of percent.

Ed, well, the bid has disappeared from the equity market. You're looking at the S and P five hundred off by about two tenths of a percent. The same thing sort of goes for the NASAQ one hundred, those big tech names. It's the financials that are interesting today. We're actually off the session lows that sector down about three tenths of percent.

We know that Goldman Bake of America big.

We know that Goldman Bake of America big.

Wait today after reporting earnings earlier today, and the two year treasure yield up slightly about two.

Wait today after reporting earnings earlier today, and the two year treasure yield up slightly about two.

Basis points or so.

Basis points or so.

You can see we are above four twenty on the two year treasure field.

You can see we are above four twenty on the two year treasure field.

Let's get to the fun stuff though. Let's talk about Bitcoin.

Let's get to the fun stuff though. Let's talk about Bitcoin.

Bitcoin has been really interesting. It used to trade hand in hand with those tech socks. You can see that the relationship is really broken apart, and today's.

Bitcoin has been really interesting. It used to trade hand in hand with those tech socks. You can see that the relationship is really broken apart, and today's.

Action drives that point home.

Action drives that point home.

You can see Bitcoin up by two and a half percent. It is above thirty thousand once again. It's going to be interesting to continue to watch this one and keep an.

You can see Bitcoin up by two and a half percent. It is above thirty thousand once again. It's going to be interesting to continue to watch this one and keep an.

Eye on that correlation.

Eye on that correlation.

But let's go from the big picture to some of those micro own names, and we should start with Nvidia higher by almost three percent today. It had one cell rating left that was HSBC that in lists changing its tune today a rare double upgrade. He went from a cell to a bye can see that is filtering through to n video shares. We're also looking at AMD. Not too much action there no real news that stock is hired by about half a percent or so on some heavy volume two, so keep an eye on that. And Southworth West Airlines briefly halted all of its flights due to a technology issue. As we understand, those flights of rezumed stock still off by about one point six percent.

But let's go from the big picture to some of those micro own names, and we should start with Nvidia higher by almost three percent today. It had one cell rating left that was HSBC that in lists changing its tune today a rare double upgrade. He went from a cell to a bye can see that is filtering through to n video shares. We're also looking at AMD. Not too much action there no real news that stock is hired by about half a percent or so on some heavy volume two, so keep an eye on that. And Southworth West Airlines briefly halted all of its flights due to a technology issue. As we understand, those flights of rezumed stock still off by about one point six percent.

Yeah, we're going to get a deeper report in Southwest later on in the show. But it is interesting to note a little outperformance in the chip space. Thank you, Katie Greifert out in New York. So despite a bullish rebound in the economy, China's production of chips and other electronics are declining from slower sales as well as competitive pressures from factories that are in other locations joining me here in San Francisco, Bloomberg's Ian King. There is a short term story here and there is a longer term story.

Yeah, we're going to get a deeper report in Southwest later on in the show. But it is interesting to note a little outperformance in the chip space. Thank you, Katie Greifert out in New York. So despite a bullish rebound in the economy, China's production of chips and other electronics are declining from slower sales as well as competitive pressures from factories that are in other locations joining me here in San Francisco, Bloomberg's Ian King. There is a short term story here and there is a longer term story.

Let's start with the short term. What's happening?

Let's start with the short term. What's happening?

Yeah, I mean, think about what the companies have told us. I've said, Look, there's just too much inventory out there. There isn't enough phone demand, there isn't enough PC demand. We need to dig our way out of that mound of inventory and then we can go back to shipping towards what end demand is. The question is, well, where is end demand? Are we pre pandemic levels or are we at some level in between the pigs that we saw during the pandemic. We'll see in the second.

Yeah, I mean, think about what the companies have told us. I've said, Look, there's just too much inventory out there. There isn't enough phone demand, there isn't enough PC demand. We need to dig our way out of that mound of inventory and then we can go back to shipping towards what end demand is. The question is, well, where is end demand? Are we pre pandemic levels or are we at some level in between the pigs that we saw during the pandemic. We'll see in the second.

Half that the broader debate is about supply chain de risking or diversifying moving out of China. What does this data signal about that?

Half that the broader debate is about supply chain de risking or diversifying moving out of China. What does this data signal about that?

I think the big underlying concern and we won't really see that manifest itself until so the next year, the year after when a lot of these factories get built. Is governments everywhere around the world are saying, hey, we want a chip industry, we want a chip industry, throwing money at it. The economics that once drove where these chip plans were made arguably being upturned. So are we going to see excess.

I think the big underlying concern and we won't really see that manifest itself until so the next year, the year after when a lot of these factories get built. Is governments everywhere around the world are saying, hey, we want a chip industry, we want a chip industry, throwing money at it. The economics that once drove where these chip plans were made arguably being upturned. So are we going to see excess.

Supply over the Taiwan straight there's a bit more feel good about the state of chips and manufacturing TSMC. It's interesting look at the data on the Bloomberg the subject of our Techwatch column. A lot of bullishnists around that name.

Supply over the Taiwan straight there's a bit more feel good about the state of chips and manufacturing TSMC. It's interesting look at the data on the Bloomberg the subject of our Techwatch column. A lot of bullishnists around that name.

Yeah, I mean TSMC is a conduit for everyone. So if you believe in videos ai story, where does in video get its chip mode in Taiwan at TSMC, So you know, TSMC is kind of the way to play every angle here. Even though smartphones and PCs are kind of down, maybe AI is the play, as in videos would suggest.

Yeah, I mean TSMC is a conduit for everyone. So if you believe in videos ai story, where does in video get its chip mode in Taiwan at TSMC, So you know, TSMC is kind of the way to play every angle here. Even though smartphones and PCs are kind of down, maybe AI is the play, as in videos would suggest.

We I probably should have started with.

We I probably should have started with.

In video Katie mentioned it it's final cell rating gone this morning, we'll bring up the where analysts see the stop but lots of bullishnis and it's all, well, it's partly about artificial intelligence.

In video Katie mentioned it it's final cell rating gone this morning, we'll bring up the where analysts see the stop but lots of bullishnis and it's all, well, it's partly about artificial intelligence.

Yeah, I mean the HSBC report which was the final one to flip said, look, even though there aren't that many AI chips in the world, these things cost ten twenty grand each, right, that's ten times what a PC GPU cost. So even if PCs are bad, AI is good in terms of the ASP, the margins and everything else.

Yeah, I mean the HSBC report which was the final one to flip said, look, even though there aren't that many AI chips in the world, these things cost ten twenty grand each, right, that's ten times what a PC GPU cost. So even if PCs are bad, AI is good in terms of the ASP, the margins and everything else.

That's the argument, all right.

That's the argument, all right.

Thanks to Bloombozine king on Everything Semiconductor, and we talked about China. China's economy actually growing at the fastest pace in a year in the first quarter, giving the market some optimism, which I have to say was pretty short lived because we're now getting some jitters over a report that Saint Louis fed President James Billard is in favor at this time of more policy tightening, joining us to talk these markets. Emily Hill, CEO and founding partner of Bawasok Capital. Let's go to China first, Emily, in very basic terms, there was optimism and around that the reopening of the economy, strong GDP print. How in the markets do you interpret that?

Thanks to Bloombozine king on Everything Semiconductor, and we talked about China. China's economy actually growing at the fastest pace in a year in the first quarter, giving the market some optimism, which I have to say was pretty short lived because we're now getting some jitters over a report that Saint Louis fed President James Billard is in favor at this time of more policy tightening, joining us to talk these markets. Emily Hill, CEO and founding partner of Bawasok Capital. Let's go to China first, Emily, in very basic terms, there was optimism and around that the reopening of the economy, strong GDP print. How in the markets do you interpret that?

Well, we got pretty good GDP numbers out of China, four to five percent. The government's target for the year is about five So I think it shows that reopening is having exactly the effect that people anticipated. Consumers are getting out spending and that will be inflationary for the rest of the global economy. More demand for commodities, including oil, and so while it will help economic growth from an inflation perspective, is probably not a positive.

Well, we got pretty good GDP numbers out of China, four to five percent. The government's target for the year is about five So I think it shows that reopening is having exactly the effect that people anticipated. Consumers are getting out spending and that will be inflationary for the rest of the global economy. More demand for commodities, including oil, and so while it will help economic growth from an inflation perspective, is probably not a positive.

Let's bring it back here to the United States and the FED, and I promise you we will talk about the technology sector. But Fed's Ballard saying that basically these ideas of recession are a little bit overdone and that he wants to see the discussion around more hikes. What's your interpretation of FED speak right now?

Let's bring it back here to the United States and the FED, and I promise you we will talk about the technology sector. But Fed's Ballard saying that basically these ideas of recession are a little bit overdone and that he wants to see the discussion around more hikes. What's your interpretation of FED speak right now?

I think that the market is continuing to not get the FED message, and I've been saying that consistently and I think part of the issue is that all of the hikes in recent memory, if you look back at the last thirty years, took place in an environment that was essentially disinflationary. We had low inflation. It was a very different environment than one we have now. And so last thirty years, the pauses by the FED have extended from about six months to about fourteen months. And you're still seeing large parts of the market expecting a rate cut by the end of this year. And so I think they're going to be some disappointed investors. And so I think, you know, while you do have some dubbish members FED, none of them are really talking about a rate cut in twenty twenty three. If we were to have a rate cut, it would mean that we had a hard landing, and that's not good for stock Emily.

I think that the market is continuing to not get the FED message, and I've been saying that consistently and I think part of the issue is that all of the hikes in recent memory, if you look back at the last thirty years, took place in an environment that was essentially disinflationary. We had low inflation. It was a very different environment than one we have now. And so last thirty years, the pauses by the FED have extended from about six months to about fourteen months. And you're still seeing large parts of the market expecting a rate cut by the end of this year. And so I think they're going to be some disappointed investors. And so I think, you know, while you do have some dubbish members FED, none of them are really talking about a rate cut in twenty twenty three. If we were to have a rate cut, it would mean that we had a hard landing, and that's not good for stock Emily.

This is Bloomberg Technology. Let's talk a little bit about the technology sector. You know, if you expect this rate and inflation regime to persist, where do you want to position yourself within the technology landscape.

This is Bloomberg Technology. Let's talk a little bit about the technology sector. You know, if you expect this rate and inflation regime to persist, where do you want to position yourself within the technology landscape.

Well, you know, there's defensive tech, which I would put Apple into that category, and I think it is sort of Apple is the you know, Johnson and Johnson of the twenty first century. Right, it's it's it's looked at as a safe bet. You know, it now comprises seven to eight percent of the S and P, which I think is something that you know, should raise a few eyebrows. But if the parts of you know, but I would say that Apple and these this you know, safe defensive tech is now a little bit richly priced. So if I want to look in the tech sector for good values, I'm going to look at or I would really actually even look at tech adjacent sectors. So the parts of the of the tech sector that have not gone through the roof this year, you know, the NAVVAC one hundred is up almost twenty percent, and I think that's overdone.

Well, you know, there's defensive tech, which I would put Apple into that category, and I think it is sort of Apple is the you know, Johnson and Johnson of the twenty first century. Right, it's it's it's looked at as a safe bet. You know, it now comprises seven to eight percent of the S and P, which I think is something that you know, should raise a few eyebrows. But if the parts of you know, but I would say that Apple and these this you know, safe defensive tech is now a little bit richly priced. So if I want to look in the tech sector for good values, I'm going to look at or I would really actually even look at tech adjacent sectors. So the parts of the of the tech sector that have not gone through the roof this year, you know, the NAVVAC one hundred is up almost twenty percent, and I think that's overdone.

If you're going to be a little bit more dynamic and look for opportunity in this market away from when you call them a defensive riting, you're suggesting look at the balance sheet, look at this company's staying power through session. But technologically speaking, what are the corners of the market that excite you?

If you're going to be a little bit more dynamic and look for opportunity in this market away from when you call them a defensive riting, you're suggesting look at the balance sheet, look at this company's staying power through session. But technologically speaking, what are the corners of the market that excite you?

Okay, well, I would say companies like Corning that are manufacturing products used by Apple, so they make differentiated glass products. They make the gorilla glass for iPhone ceramic shield. They make ceramic substrates that are used in cutting carbon emissions, and so they're you know, a less exciting, you know, tech software innovative company. But this company has been innovating for you know, one hundred and seventy years. So I've got an alarm going off here that I'm going.

Okay, well, I would say companies like Corning that are manufacturing products used by Apple, so they make differentiated glass products. They make the gorilla glass for iPhone ceramic shield. They make ceramic substrates that are used in cutting carbon emissions, and so they're you know, a less exciting, you know, tech software innovative company. But this company has been innovating for you know, one hundred and seventy years. So I've got an alarm going off here that I'm going.

To now dealing with the technology in real time. We love it.

To now dealing with the technology in real time. We love it.

This is Bloomberg Technology, put it into practice.

This is Bloomberg Technology, put it into practice.

Bostonmai and that in Deli. Customers are lining up as Apple opens its first two stores in India. They may not be as unique as the Cube in New York, but they have all the features that Apple stores do worldwide today in Apple Apple store trade ins and the customery site of CEO Tim Cook at the front door on the first day welcoming the first few customers. Now between meeting Prime Minister Mobi of knobbing with business leaders here in Mumbai and then in Delhi and eating Mumbai Verapau with film stars. Tim Cook's visit to India and these store openings mark a significant next step in the India Apple relationship. India presents a critical supply chain diversification opportunity for Apple China manufactures more than ninety percent of iPhones to airports. Tim Cook says Apple is taking all that it learned in China out of scale China and bringing that to bear here in India. Compared to its neighbor, India is a tiny market for Apple, with just about six billion dollars in annual sales last year, but that's about fifty percent more than the year before. Local manufacturer will allow Apple to reduce some of the import taxes that it pays and make its products less expensive for Indian consumers. Two of Apple's three contract manufacturers here in the country are major beneficiaries of a flagship production incentive scheme launched by Prime Minister or In Removie's government. India too is hoping that Apple can pull a China here help build a manufacturing ecosystem that boosts jobs and exports. Medikadoshi, Bloomberg News.

Bostonmai and that in Deli. Customers are lining up as Apple opens its first two stores in India. They may not be as unique as the Cube in New York, but they have all the features that Apple stores do worldwide today in Apple Apple store trade ins and the customery site of CEO Tim Cook at the front door on the first day welcoming the first few customers. Now between meeting Prime Minister Mobi of knobbing with business leaders here in Mumbai and then in Delhi and eating Mumbai Verapau with film stars. Tim Cook's visit to India and these store openings mark a significant next step in the India Apple relationship. India presents a critical supply chain diversification opportunity for Apple China manufactures more than ninety percent of iPhones to airports. Tim Cook says Apple is taking all that it learned in China out of scale China and bringing that to bear here in India. Compared to its neighbor, India is a tiny market for Apple, with just about six billion dollars in annual sales last year, but that's about fifty percent more than the year before. Local manufacturer will allow Apple to reduce some of the import taxes that it pays and make its products less expensive for Indian consumers. Two of Apple's three contract manufacturers here in the country are major beneficiaries of a flagship production incentive scheme launched by Prime Minister or In Removie's government. India too is hoping that Apple can pull a China here help build a manufacturing ecosystem that boosts jobs and exports. Medikadoshi, Bloomberg News.

That was Bloomberg's India Senior editor Mana Kadoshi. Let's guess more on Apple's new expansion in India and bring in Bloomberg's Mark German Mark You reported a few weeks ago that even internally, Apple has been restructuring to to serve that market in India. What's the latest there.

That was Bloomberg's India Senior editor Mana Kadoshi. Let's guess more on Apple's new expansion in India and bring in Bloomberg's Mark German Mark You reported a few weeks ago that even internally, Apple has been restructuring to to serve that market in India. What's the latest there.

Yeah, India's all the hype for Apple right now. Really outside of these two retail stores, right, these retail stores probably not going to move the needle for Apple as a company revenue wise, even in India itself. Most Apple products in India and elsewhere, of course are going to be bought by consumers at third party retail stores or online or carrier partners, right. But this shows Apple's dedication to the area. These stores are not small investments. You have to hire one hundred people plus per store, You have to do inventory. They're setting up the Genius Bar and classes in India for the first time, and internally this year, they're restructuring their sales organization. So the head of India sales, right, what's known as their managing director or country manager for India, is now going to report directly to Apple's head of sales globally.

Yeah, India's all the hype for Apple right now. Really outside of these two retail stores, right, these retail stores probably not going to move the needle for Apple as a company revenue wise, even in India itself. Most Apple products in India and elsewhere, of course are going to be bought by consumers at third party retail stores or online or carrier partners, right. But this shows Apple's dedication to the area. These stores are not small investments. You have to hire one hundred people plus per store, You have to do inventory. They're setting up the Genius Bar and classes in India for the first time, and internally this year, they're restructuring their sales organization. So the head of India sales, right, what's known as their managing director or country manager for India, is now going to report directly to Apple's head of sales globally.

Right.

Right.

That's going to be a first. Previously you had a vice president in between who oversaw India as well as other emerging markets like Eastern Europe and Africa, So that layer has been removed, sort of elevating the importance of India within the company's operations itself.

That's going to be a first. Previously you had a vice president in between who oversaw India as well as other emerging markets like Eastern Europe and Africa, So that layer has been removed, sort of elevating the importance of India within the company's operations itself.

There's a lot of data when it comes to Apple flying out of India right now. You know that the latest reporting from Bloomberg is from a sales perspective, six billion dollars for the twelve month period through March. That's just one side of the story. The other is supply chain and manufacturing, right and I think the latest reporting from Bloomberg is the dollar value of exports or iPhones constructed in that nation hitting new milestone as well. What is the strategy for Apple in having a supply chain base in that nation.

There's a lot of data when it comes to Apple flying out of India right now. You know that the latest reporting from Bloomberg is from a sales perspective, six billion dollars for the twelve month period through March. That's just one side of the story. The other is supply chain and manufacturing, right and I think the latest reporting from Bloomberg is the dollar value of exports or iPhones constructed in that nation hitting new milestone as well. What is the strategy for Apple in having a supply chain base in that nation.

Yeah, the strategy for Apple to have a supply chain base in India is twofold one. You really need to manufacture devices that you're selling in India in India itself to save on some of those import taxes, right, which are incredibly high as they are in Brazil, another place where Apple has set up shop to produce iPhone. So that's one part of it. The bigger component is diversification. Right until now, Apple had mostly produced all of its devices in China. But over the last four to five years or so, you've seen issues related to tariffs, You've seen the potential trade war between the US and China. You've seen these COVID zero policies in China. You've seen the impact of the virus in China on Apple's production, so you've seen delay after delay to key products, the MacBook Air last year, the iPhone fourteen Pro. This was just at the end of twenty twenty two, right two years plus into COVID, and you saw major shutdowns at Fox. Cond prevented Apple from selling as many iPhone fourteen pros as possible. So you really need to diversify to try to avoid problems like that, and that's what you're seeing Apple lay the groundwork for in India primarily, but also in places like Vietnam, in Malaysia and Brazil as well, plus a little bit of Ireland.

Yeah, the strategy for Apple to have a supply chain base in India is twofold one. You really need to manufacture devices that you're selling in India in India itself to save on some of those import taxes, right, which are incredibly high as they are in Brazil, another place where Apple has set up shop to produce iPhone. So that's one part of it. The bigger component is diversification. Right until now, Apple had mostly produced all of its devices in China. But over the last four to five years or so, you've seen issues related to tariffs, You've seen the potential trade war between the US and China. You've seen these COVID zero policies in China. You've seen the impact of the virus in China on Apple's production, so you've seen delay after delay to key products, the MacBook Air last year, the iPhone fourteen Pro. This was just at the end of twenty twenty two, right two years plus into COVID, and you saw major shutdowns at Fox. Cond prevented Apple from selling as many iPhone fourteen pros as possible. So you really need to diversify to try to avoid problems like that, and that's what you're seeing Apple lay the groundwork for in India primarily, but also in places like Vietnam, in Malaysia and Brazil as well, plus a little bit of Ireland.

So that's the India story. Let's go a bit more global. We asked our audience if you're going to buy an Apple products, where do you do it?

So that's the India story. Let's go a bit more global. We asked our audience if you're going to buy an Apple products, where do you do it?

Install?

Install?

Online or as you explaining from a third party right other retailers. Fifty five percent respondents online is where they're buying. What is store strategy broadly for Apple? What is the future of the Apple store with its shiny glass windows?

Online or as you explaining from a third party right other retailers. Fifty five percent respondents online is where they're buying. What is store strategy broadly for Apple? What is the future of the Apple store with its shiny glass windows?

You know, I think the poll is a little skewed, right, it was a Twitter poll and perhaps our audience on Twitter. There are people who you know want to go to an Apple store to buy an iPhone, or they live near Apple stores. But the actual truth is that the vast majority of iPhones, at least they're actually purchased through third party retailers and carriers, right, whether that's your Verizon store in the US, or your O two store in the UK, or in Best Buyer Target or elsewhere in the US, or Carphone Warehouse in Europe.

You know, I think the poll is a little skewed, right, it was a Twitter poll and perhaps our audience on Twitter. There are people who you know want to go to an Apple store to buy an iPhone, or they live near Apple stores. But the actual truth is that the vast majority of iPhones, at least they're actually purchased through third party retailers and carriers, right, whether that's your Verizon store in the US, or your O two store in the UK, or in Best Buyer Target or elsewhere in the US, or Carphone Warehouse in Europe.

Right.

Right.

And so Apple really wants a lot more of those sales to flow through its own retail stores, right. And we've seen a slow down and expansion for retail stores over the last three to four years or so, primarily due to COVID.

And so Apple really wants a lot more of those sales to flow through its own retail stores, right. And we've seen a slow down and expansion for retail stores over the last three to four years or so, primarily due to COVID.

And other reasons.

And other reasons.

They have so many at this point, But what you're seeing is they're pushing more stores now in that Asia area, right. You have India, They've opened more stores in Korea recently, and then they have stores coming in Malaysia as well, So clearly their expansion is Asia related at this point.

They have so many at this point, But what you're seeing is they're pushing more stores now in that Asia area, right. You have India, They've opened more stores in Korea recently, and then they have stores coming in Malaysia as well, So clearly their expansion is Asia related at this point.

Mark.

Mark.

The other big story of the week is Apple in partnership with Goldman Sachs offering a savings account with a four point one five percent yield.

The other big story of the week is Apple in partnership with Goldman Sachs offering a savings account with a four point one five percent yield.

Why is Apple doing that?

Why is Apple doing that?

Yeah, so this was actually introduced several months ago, right, it was a little bit delayed. It's now rolling out in the Wallet app if you have an Apple Card. And you know, some people think that Apple has big ambitions here, and that is absolutely true.

Yeah, so this was actually introduced several months ago, right, it was a little bit delayed. It's now rolling out in the Wallet app if you have an Apple Card. And you know, some people think that Apple has big ambitions here, and that is absolutely true.

But the reality is is.

But the reality is is.

That this is still going to be US only and still Apple Card only. Eventually, this is probably going to expand as the Apple Card expands, hopefully. I know a lot of people in Europe and Canada want to get their hands on that. Four point one five percent is a pretty good rate. That's actually a quarter percent higher than the rate that Goldman offers if you were to create a savings account through the Goldman website versus through the Apple Card. And this is Apple wanting to give more people reasons.

That this is still going to be US only and still Apple Card only. Eventually, this is probably going to expand as the Apple Card expands, hopefully. I know a lot of people in Europe and Canada want to get their hands on that. Four point one five percent is a pretty good rate. That's actually a quarter percent higher than the rate that Goldman offers if you were to create a savings account through the Goldman website versus through the Apple Card. And this is Apple wanting to give more people reasons.

To hold onto their iPhone.

To hold onto their iPhone.

Right, if you have your savings account in your phone, It's gonna make it all but impossible every time they add a new layer or a new feature to switch away to Android or to another product.

Right, if you have your savings account in your phone, It's gonna make it all but impossible every time they add a new layer or a new feature to switch away to Android or to another product.

All right, Bloomberg's Mark German with all the latest on Apple. Thank you coming up. Revenue from fixed income one of the main highlights as big banks like Goldman Sachs but also Bank of America report quarterly results. We'll get more on how those lenders performed coming.

All right, Bloomberg's Mark German with all the latest on Apple. Thank you coming up. Revenue from fixed income one of the main highlights as big banks like Goldman Sachs but also Bank of America report quarterly results. We'll get more on how those lenders performed coming.

Up, But let's take a look at some of the stocks. How we're moving, how we're reacting. Some interesting numbers.

Up, But let's take a look at some of the stocks. How we're moving, how we're reacting. Some interesting numbers.

But you look at the equity markets in the banking space, Goldman down one and a half percent, Bank of America off by eight tens of a percent. Why we'll ask that question next with Bloomberg shn Ali Bassak.

But you look at the equity markets in the banking space, Goldman down one and a half percent, Bank of America off by eight tens of a percent. Why we'll ask that question next with Bloomberg shn Ali Bassak.

This is Bloomberg.

This is Bloomberg.

Coarsely results from Bank of America and Goldman Sachs show different approaches to fixed income trading, with Bank of America topping estimates as fixed income trading drives profits. Meanwhile, Goldman Sacks failed to catalyze on the trend.

Coarsely results from Bank of America and Goldman Sachs show different approaches to fixed income trading, with Bank of America topping estimates as fixed income trading drives profits. Meanwhile, Goldman Sacks failed to catalyze on the trend.

Who else is.

Who else is.

Here but Bloomberg News Will Street Reports Shnalie Bassett give me the banking scorecard this Tuesday morning.

Here but Bloomberg News Will Street Reports Shnalie Bassett give me the banking scorecard this Tuesday morning.

Yeah, it's hard not to pay attention to those trading numbers because they've posted. Goldman Sachs had posted a drop relative to the others that was worth noticing because you saw beats a JP Morgan City Group and at Bank of America. However, I would still say that these are broader market moves as well, because you have the commodities business not as strong as it was a year ago when you had massive volatility in the industry, and same with currencies.

Yeah, it's hard not to pay attention to those trading numbers because they've posted. Goldman Sachs had posted a drop relative to the others that was worth noticing because you saw beats a JP Morgan City Group and at Bank of America. However, I would still say that these are broader market moves as well, because you have the commodities business not as strong as it was a year ago when you had massive volatility in the industry, and same with currencies.

I do want to point to.

I do want to point to.

Some other things in the businesses here too, because remember Goldman Sacks had cut some headcount here, while Bank of America became the third big bank to show increasing headcount. That is a fascinating story at a time where we've seen a lot of pressure on jobs across the entire market. I want to take a little bit of a technology angle here as well, because as we know Goldman, as people look to how they are reshaping the firm to the consumer business, the business tied to Marcus is of high attention, and you have David Solomon, the CEO of Goldman Sachs, saying that they're exploring a sale of green Sky. This is the installment lending platform they had bought just a couple of years ago. So that is still something as Goldman transforms is weighing on its results in the near term. But again we're looking over to the other side. Bank of America, by the way, pulling in lots of deposits here and lots of new clients rather as deposits are under pressure as we watch to see how this kind of banking trump tumble really starts to play out so real quick.

Some other things in the businesses here too, because remember Goldman Sacks had cut some headcount here, while Bank of America became the third big bank to show increasing headcount. That is a fascinating story at a time where we've seen a lot of pressure on jobs across the entire market. I want to take a little bit of a technology angle here as well, because as we know Goldman, as people look to how they are reshaping the firm to the consumer business, the business tied to Marcus is of high attention, and you have David Solomon, the CEO of Goldman Sachs, saying that they're exploring a sale of green Sky. This is the installment lending platform they had bought just a couple of years ago. So that is still something as Goldman transforms is weighing on its results in the near term. But again we're looking over to the other side. Bank of America, by the way, pulling in lots of deposits here and lots of new clients rather as deposits are under pressure as we watch to see how this kind of banking trump tumble really starts to play out so real quick.

There's also tension here for Goldman, right questions about hold on you have Marcus, we also have now Apple savings of four point one five percent yield. Don't they do the same thing.

There's also tension here for Goldman, right questions about hold on you have Marcus, we also have now Apple savings of four point one five percent yield. Don't they do the same thing.

I'm really glad you asked that, because the answer is no. On one hand, you do have a consumer business here. They've folded into platform solutions by working with Apple at four one point one five percent. This really intense yield you're getting from that Apple savings product. With Goldman Sacks, it's pulling deposits, lowering the cost of funding for gold and Sacks, whereas they're selling loans associated with that Marcus portfolio and as you know, lending to high networth individuals and private wealth instead.

I'm really glad you asked that, because the answer is no. On one hand, you do have a consumer business here. They've folded into platform solutions by working with Apple at four one point one five percent. This really intense yield you're getting from that Apple savings product. With Goldman Sacks, it's pulling deposits, lowering the cost of funding for gold and Sacks, whereas they're selling loans associated with that Marcus portfolio and as you know, lending to high networth individuals and private wealth instead.

All right, Bloomberg Shnali Bassek on the Wall Street Beat, Welcome back to Bloomberg Technology, Imed Lovelow in San Francisco. Let's get a little check on the markets here. We kind of turned a corner in the last few minutes, and as that one hundred modestly hired just a tenth to one percent, basically flat without performance in the chip sector. Comments from Saint Louis FED President James Bullard basically saying more hikes still on the table and the market digesting that. Look at the short end of the curve, the two year up by three basis points four point two two percent. Bitcoin is Katie Greifeld was telling us earlier in the program holding above thirty five, I was in US dollars per token, So continue to track that. In the risk asset space, There's one mover that we're keeping an eye on, which is Southwest Airlines. A technology issue temporarily grounded a number of flights that the Southwest team had to coordinate with the FAA over We're off session lows, but still lower one point two percent. Let's stick with that story and get the latest details with Catherine Larkin, who's the Global business editor at Bloomberg News. Simply put Kathy, what happened?

All right, Bloomberg Shnali Bassek on the Wall Street Beat, Welcome back to Bloomberg Technology, Imed Lovelow in San Francisco. Let's get a little check on the markets here. We kind of turned a corner in the last few minutes, and as that one hundred modestly hired just a tenth to one percent, basically flat without performance in the chip sector. Comments from Saint Louis FED President James Bullard basically saying more hikes still on the table and the market digesting that. Look at the short end of the curve, the two year up by three basis points four point two two percent. Bitcoin is Katie Greifeld was telling us earlier in the program holding above thirty five, I was in US dollars per token, So continue to track that. In the risk asset space, There's one mover that we're keeping an eye on, which is Southwest Airlines. A technology issue temporarily grounded a number of flights that the Southwest team had to coordinate with the FAA over We're off session lows, but still lower one point two percent. Let's stick with that story and get the latest details with Catherine Larkin, who's the Global business editor at Bloomberg News. Simply put Kathy, what happened?

Oh, thanks for having me in.

Oh, thanks for having me in.

So yet again we're seeing Southwest with a big operations problem. Today they had a sixteen minute groundhoult that delayed over one thousand planes this morning. They said it had to do with a vendor supplied firewall prevented planes from taking off or leaving the gate. And this is just you know, while a short term problem was you know, sixteen minutes, it really caused a big mass for this morning was air traffic.

So yet again we're seeing Southwest with a big operations problem. Today they had a sixteen minute groundhoult that delayed over one thousand planes this morning. They said it had to do with a vendor supplied firewall prevented planes from taking off or leaving the gate. And this is just you know, while a short term problem was you know, sixteen minutes, it really caused a big mass for this morning was air traffic.

So as I said, the stock down one point two percent, we have been markedly lower. It was sixteen minutes of chaos. Basically, how impactful was it for flights around the country.

So as I said, the stock down one point two percent, we have been markedly lower. It was sixteen minutes of chaos. Basically, how impactful was it for flights around the country.

Yeah, so the problems actually seem to emerge even before that ground hault was put in place. So, like I said, over one thousand flights, you know, we're delayed. We wouldn't be surprised to see several of these flights be canceled by the end of the day. This is really a ongoing problem for Southwest. You remember in December they stranded tens of thousands of passengers right around the holidays. They are just seeing, you know, repeat problems with their operations and their scheduling. And even here if it's a vendor issue, that still ultimately comes down to management to be accountable.

Yeah, so the problems actually seem to emerge even before that ground hault was put in place. So, like I said, over one thousand flights, you know, we're delayed. We wouldn't be surprised to see several of these flights be canceled by the end of the day. This is really a ongoing problem for Southwest. You remember in December they stranded tens of thousands of passengers right around the holidays. They are just seeing, you know, repeat problems with their operations and their scheduling. And even here if it's a vendor issue, that still ultimately comes down to management to be accountable.

It's interesting because I remember last month there was a partnership announce between Southwest and AWS on the cloud Side to try and rectify some of the sort of long standing systemic technological issues, begs the question of kind of what happens next to Southwest?

It's interesting because I remember last month there was a partnership announce between Southwest and AWS on the cloud Side to try and rectify some of the sort of long standing systemic technological issues, begs the question of kind of what happens next to Southwest?

Cathy, No, they are going to have to answer questions. I mean, this is something like you said, they've been talking about for the last several months. They say that they're putting new systems in place to prevent future issues, and yet here we go again today with a major issue, you know as a big Groundhoult, not something we see every day. They're going to have their earnings and just you know, another like couple of weeks April twenty seventh, and management's going to be asked to answer for this. This is this is really unacceptable, and I think flyers are going to start to think twice whether they want a book with Southwest.

Cathy, No, they are going to have to answer questions. I mean, this is something like you said, they've been talking about for the last several months. They say that they're putting new systems in place to prevent future issues, and yet here we go again today with a major issue, you know as a big Groundhoult, not something we see every day. They're going to have their earnings and just you know, another like couple of weeks April twenty seventh, and management's going to be asked to answer for this. This is this is really unacceptable, and I think flyers are going to start to think twice whether they want a book with Southwest.

All right, Bloomberg's Global Business editor Katherin Larkin, thank you very much. All Right, let's move from transport to cyber and in cyber news, the European Union just proposed several new cybersecurity efforts basically aimed at bolstering the block's response to online threats.

All right, Bloomberg's Global Business editor Katherin Larkin, thank you very much. All Right, let's move from transport to cyber and in cyber news, the European Union just proposed several new cybersecurity efforts basically aimed at bolstering the block's response to online threats.

The new plan, which.

The new plan, which.

Still needs to be approved, as is often the case in Europe, would link national and cross border operations centers across the EU to detect and act on threats, among other measures. And what about the USA, how organizations grappling with data security and what more can be done? Let's ask people sending a CEO of Rubric who joins.

Still needs to be approved, as is often the case in Europe, would link national and cross border operations centers across the EU to detect and act on threats, among other measures. And what about the USA, how organizations grappling with data security and what more can be done? Let's ask people sending a CEO of Rubric who joins.

Me here in San Francisco.

Me here in San Francisco.

You've just put out a pretty wide ranging report survey based companies all across the country globally keep telling us we're investing in cybersecurity data protection.

You've just put out a pretty wide ranging report survey based companies all across the country globally keep telling us we're investing in cybersecurity data protection.

What did your report find?

What did your report find?

Thank you so much for the opportunity. They are still not secure. What we found was every organization has already been infiltrated. Ninety nine percent of the IT and security leader that we surveyed reported cyber incidents in their organization and fifty two times last year, so almost one cyber attack per week, which essentially means that all the preventions, tools and technology that they have purchased over the years, while needed, is not sufficient. It's not working.

Thank you so much for the opportunity. They are still not secure. What we found was every organization has already been infiltrated. Ninety nine percent of the IT and security leader that we surveyed reported cyber incidents in their organization and fifty two times last year, so almost one cyber attack per week, which essentially means that all the preventions, tools and technology that they have purchased over the years, while needed, is not sufficient. It's not working.

A part of your findings your survey was actually many cases companies across all sectors, do you have a backup plan? It's just the backup plan work. Is that a lack of investment, a lack of care, a lack of strategy are the what is it the core of that vulnerability?

A part of your findings your survey was actually many cases companies across all sectors, do you have a backup plan? It's just the backup plan work. Is that a lack of investment, a lack of care, a lack of strategy are the what is it the core of that vulnerability?

So legacy backup was built for human error recovery or natural disaster recovery. It was not built for cyber As a result, it is vulnerable. In our finding, what we found that the nine out of the ten organizations actually saw an attempt to manipulate their backup And what was interesting was that three out of the four attempts we are successful. So folks, fundamentally, the bad guys know that it is a vulnerability for most of the organizations and they are going after it.

So legacy backup was built for human error recovery or natural disaster recovery. It was not built for cyber As a result, it is vulnerable. In our finding, what we found that the nine out of the ten organizations actually saw an attempt to manipulate their backup And what was interesting was that three out of the four attempts we are successful. So folks, fundamentally, the bad guys know that it is a vulnerability for most of the organizations and they are going after it.

The behavior of attackers and the industry response really interesting. Ransomware being a great example. There are lots of incidences of late where in a ransomware attack, the hackers leaked the information they obtained, the data they attained in order to kind of induce a pay up.

The behavior of attackers and the industry response really interesting. Ransomware being a great example. There are lots of incidences of late where in a ransomware attack, the hackers leaked the information they obtained, the data they attained in order to kind of induce a pay up.

How do you protect against that?

How do you protect against that?

Ransomware is particularly nasty problem. What we found was that over seventy two percent of the organizations we surveyed paid ransom. That was an incredible stance. And what is interesting is that only sixteen percent of these organizations, after paying ransom, could recover their data using the decryptor tool from the threat actors. So essentially, businesses are at their wits end to really take care of the ransomware problem, not only in terms of the locking of their data, but as you said, in terms of exposure of their business critical data, whether it's customer data or their own internal data.

Ransomware is particularly nasty problem. What we found was that over seventy two percent of the organizations we surveyed paid ransom. That was an incredible stance. And what is interesting is that only sixteen percent of these organizations, after paying ransom, could recover their data using the decryptor tool from the threat actors. So essentially, businesses are at their wits end to really take care of the ransomware problem, not only in terms of the locking of their data, but as you said, in terms of exposure of their business critical data, whether it's customer data or their own internal data.

Rubrick, let's talk about the company.

Rubrick, let's talk about the company.

I think you've been quite open about a cybersecurity incident where hackers leak some data linked to you. Did you pay a ransom in that case? What was the scenario that played out?

I think you've been quite open about a cybersecurity incident where hackers leak some data linked to you. Did you pay a ransom in that case? What was the scenario that played out?

I mean, a threat actor got hold of one of our test bed system in the IT department, and we actually laid it out what happened. It's a case study as a case study as how they entered and what did they do as part of our blog post. And then the threat actually put our name in their name and shame website. People who don't pay ransom.

I mean, a threat actor got hold of one of our test bed system in the IT department, and we actually laid it out what happened. It's a case study as a case study as how they entered and what did they do as part of our blog post. And then the threat actually put our name in their name and shame website. People who don't pay ransom.

They get their name and pay their ransom, and I mean.

They get their name and pay their ransom, and I mean.

It is very clear what we did we did not and then and then what we did was we used Rubric's own technology to restore our services. And this is our core message that attacks are inevitable and businesses need to have resilience strategy as opposed to just prevention.

It is very clear what we did we did not and then and then what we did was we used Rubric's own technology to restore our services. And this is our core message that attacks are inevitable and businesses need to have resilience strategy as opposed to just prevention.

I know there's a lot of interest in Rubric from investors globally. Cybersecurity space seems to have some momentum behind it, some dollars behind it. So do you take the opportunity in that and go public? Have you thought about a timeline to an IPO.

I know there's a lot of interest in Rubric from investors globally. Cybersecurity space seems to have some momentum behind it, some dollars behind it. So do you take the opportunity in that and go public? Have you thought about a timeline to an IPO.

We want to be a public company. We want to build a long term company. Going public is the is the route. We are doing work on our end to prepare ourselves. We are also looking at the at the markets and trying to understand how where the market is. We'll want to be public when the market is ready and we are ready.

We want to be a public company. We want to build a long term company. Going public is the is the route. We are doing work on our end to prepare ourselves. We are also looking at the at the markets and trying to understand how where the market is. We'll want to be public when the market is ready and we are ready.

Fil Senya, CEO Rubig, thank you for joining me here in San Francisco. Now we ramp up to Earth Day this Saturday. We considue to take a look at new technologies in the fight against climate change, like air travel. Bloomberg Steve Rappaport has more.

Fil Senya, CEO Rubig, thank you for joining me here in San Francisco. Now we ramp up to Earth Day this Saturday. We considue to take a look at new technologies in the fight against climate change, like air travel. Bloomberg Steve Rappaport has more.

The race to reduce carbon emissions from air travel has seen multiple milestones this year, with two companies having completed successful test flights of hydrogen powered aircrafts UK startup Zero Obvious said it successfully conducted a test flight of a hydrogen powered nineteen seater plane in January and in March, at universal hydrogen plane, ifquipped with the largest hydrogen fuel cell ever to power in aircraft, had a successful fifteen minute flight of a modified Dash eight aircraft in Washington State.

The race to reduce carbon emissions from air travel has seen multiple milestones this year, with two companies having completed successful test flights of hydrogen powered aircrafts UK startup Zero Obvious said it successfully conducted a test flight of a hydrogen powered nineteen seater plane in January and in March, at universal hydrogen plane, ifquipped with the largest hydrogen fuel cell ever to power in aircraft, had a successful fifteen minute flight of a modified Dash eight aircraft in Washington State.

It is the beginning of a flight test campaign that will ultimately culminate in a twenty twenty five entry into passenger service of fifty to sixty seat regional airplanes starting with the ATR seventy two.

It is the beginning of a flight test campaign that will ultimately culminate in a twenty twenty five entry into passenger service of fifty to sixty seat regional airplanes starting with the ATR seventy two.

The Paris Agreement has a goal of net zero emission air travel by twenty to fifty, and hydrogen powered planes present one of the most promising options.

The Paris Agreement has a goal of net zero emission air travel by twenty to fifty, and hydrogen powered planes present one of the most promising options.

So aviation is one of the few sectors that's actually forecasted to grow in emissions on the time horizon of the Paris Agreement by twenty fifty, and so hydrogen probably represents the best that only hope the sector really has to make a meaningful dent right enough to offset continuing traffic growth. The only alternative we as an industry have is curtailing traffic volumes in order to reduce emissions.

So aviation is one of the few sectors that's actually forecasted to grow in emissions on the time horizon of the Paris Agreement by twenty fifty, and so hydrogen probably represents the best that only hope the sector really has to make a meaningful dent right enough to offset continuing traffic growth. The only alternative we as an industry have is curtailing traffic volumes in order to reduce emissions.

Connect the Airlines, which operates regional flights between Toronto and Cargo and Philadelphia, has already placed in order to convert seventy five planes to hydrogen power through Universal Hydrogen and Air New Zealand is working with a series of partners as it looks to make its aircraft fleet zero emission. However, several hurdles remain, including how best to transport the hydrogen and space limitations of the hydrogen modules aboard the aircrafts. But these test flights present a promising step in the right direction as airlines work towards reduced emissions. Steve Rappaport, Bloomberg News.

Connect the Airlines, which operates regional flights between Toronto and Cargo and Philadelphia, has already placed in order to convert seventy five planes to hydrogen power through Universal Hydrogen and Air New Zealand is working with a series of partners as it looks to make its aircraft fleet zero emission. However, several hurdles remain, including how best to transport the hydrogen and space limitations of the hydrogen modules aboard the aircrafts. But these test flights present a promising step in the right direction as airlines work towards reduced emissions. Steve Rappaport, Bloomberg News.

Let's stick with the hydrogen story. Nikola shares jumping as much as twelve percent on Monday, now up around nine percent, coming off an all time low last Friday. What's astonishing with this stock up for a second consecutive day, biggest two day game.

Let's stick with the hydrogen story. Nikola shares jumping as much as twelve percent on Monday, now up around nine percent, coming off an all time low last Friday. What's astonishing with this stock up for a second consecutive day, biggest two day game.

Going back to October.

Going back to October.

This is one of those companies that went public virus back twenty twenty. But the long term story is around not just building fuel cell trucks, but also the hydrogen infrastructure to power them. But again very at all, you know, really really heading towards penny Stock territory.

This is one of those companies that went public virus back twenty twenty. But the long term story is around not just building fuel cell trucks, but also the hydrogen infrastructure to power them. But again very at all, you know, really really heading towards penny Stock territory.

Interesting.

Interesting.

Now coming up, we're going to take a pulse of the VC landscape and what generative AI has to offer two bench capitalists with Race Capital General Partner Alfred Chuang, that's next.

Now coming up, we're going to take a pulse of the VC landscape and what generative AI has to offer two bench capitalists with Race Capital General Partner Alfred Chuang, that's next.

This is Bloomberg.

This is Bloomberg.

Time.

Time.

Now for the VC roundup.

Now for the VC roundup.

Let's start with Devon, the pioneer of the shale revolution that reignited US oil and n actural gas production, is now getting into geoform or renewable energy. A ten million dollar investment into geofirm will startup Fervo Energy, and over in Europe, Venge capital firms are on pace for their lowest year of funding since twenty fifteen. A's the weaker stock market rising interest rates is causing larger institutional investors LPs like pension funds to pull back in the VC space. Let's bring in Castle General Partner Alfred Juwang for his read on the VC landscape here in the US, in Europe and globally. You issued this like rallying cry in the pandemic era. You wanted your founders and CEOs to be more active, do more. You wanted your industry peers to do more, and then the world sort of fell apart, higher rates, the war in Ukraine. Where does your rallying cry sit now?

Let's start with Devon, the pioneer of the shale revolution that reignited US oil and n actural gas production, is now getting into geoform or renewable energy. A ten million dollar investment into geofirm will startup Fervo Energy, and over in Europe, Venge capital firms are on pace for their lowest year of funding since twenty fifteen. A's the weaker stock market rising interest rates is causing larger institutional investors LPs like pension funds to pull back in the VC space. Let's bring in Castle General Partner Alfred Juwang for his read on the VC landscape here in the US, in Europe and globally. You issued this like rallying cry in the pandemic era. You wanted your founders and CEOs to be more active, do more. You wanted your industry peers to do more, and then the world sort of fell apart, higher rates, the war in Ukraine. Where does your rallying cry sit now?

Good morning and very good to see you. Thank God for having me back most definitely. I think this is an economic environment that clearly is for investing, is not for the faint hearted at all. I think we have seen VC funding for startups dropped over fifty percent down to seventy six billion dollar in the first quarter.

Good morning and very good to see you. Thank God for having me back most definitely. I think this is an economic environment that clearly is for investing, is not for the faint hearted at all. I think we have seen VC funding for startups dropped over fifty percent down to seventy six billion dollar in the first quarter.

That was globally. That globally, yes.

That was globally. That globally, yes.

And then we saw all the specteal, the whole frenzy went away. We also saw the IPR marketers and our time law. We also heard Silken Value Bank went under after four decades of service, specific specifically for our industry. So these are a huge monumental impact that we've seen in the industry yourself, so tough time.

And then we saw all the specteal, the whole frenzy went away. We also saw the IPR marketers and our time law. We also heard Silken Value Bank went under after four decades of service, specific specifically for our industry. So these are a huge monumental impact that we've seen in the industry yourself, so tough time.

Yeah.

Yeah.

I am really interested on the relationship between the public and private markets, but also how you follow the same data sets that the public market investor would be. So today one of the stories is fed speak James Blood of the Saint Louis fed saying actually more hikes. So if you think about an inflation regime, the hike regime being there for longer, how does that impact the mindset of aventure capitalist.

I am really interested on the relationship between the public and private markets, but also how you follow the same data sets that the public market investor would be. So today one of the stories is fed speak James Blood of the Saint Louis fed saying actually more hikes. So if you think about an inflation regime, the hike regime being there for longer, how does that impact the mindset of aventure capitalist.

So obviously it has.

So obviously it has.

An impact that's clearly have an impact on evaluation. So if you look at like very lay stage deal like Stripe is now down thirty percent during this time, so we have to expect lay stage deals when its prices goes down, it will triggle down all the way to the earlier stage deal. The impact to the deals that my team and I, that is capital are involved in a very early they see than preseed in those particular kind of investments, the impact has been a lot less because people are still very helpful to look out a much longer period of time horizon for technological innovation.

An impact that's clearly have an impact on evaluation. So if you look at like very lay stage deal like Stripe is now down thirty percent during this time, so we have to expect lay stage deals when its prices goes down, it will triggle down all the way to the earlier stage deal. The impact to the deals that my team and I, that is capital are involved in a very early they see than preseed in those particular kind of investments, the impact has been a lot less because people are still very helpful to look out a much longer period of time horizon for technological innovation.

We discussed that contrast on the program Pretty dowur broad outlook from VCS. A lot of excitement about the seed and pre seed stage. Is it just simply because it's easier to write a smaller check and not lose as much sleep over it?

We discussed that contrast on the program Pretty dowur broad outlook from VCS. A lot of excitement about the seed and pre seed stage. Is it just simply because it's easier to write a smaller check and not lose as much sleep over it?

Yeah, Actually I don't think that's the case. I think actually it has a lot more to do the visas of self. If you look at what we do, because we're so early, we have the lookout for the kind of company and technological innovation. What will happen to them? What impact would they have ten years down the road or sometimes longer. So for that downturn has.

Yeah, Actually I don't think that's the case. I think actually it has a lot more to do the visas of self. If you look at what we do, because we're so early, we have the lookout for the kind of company and technological innovation. What will happen to them? What impact would they have ten years down the road or sometimes longer. So for that downturn has.

Always been proven.

Always been proven.

I mean myself had gone through ran large companies, tech public company during up and downturns, there's no better time to invest in early stage things for new invention, for the outlook of how a world's going to be evolving too ten years down the road artificial intelligence.

I mean myself had gone through ran large companies, tech public company during up and downturns, there's no better time to invest in early stage things for new invention, for the outlook of how a world's going to be evolving too ten years down the road artificial intelligence.

How many times a day do you say, where's artificial and intelligence?

How many times a day do you say, where's artificial and intelligence?

At the moment our offices in Palato not enough.

At the moment our offices in Palato not enough.

Every street corner, every conversation of Starbucks, every conversation and the office, every everything.

Every street corner, every conversation of Starbucks, every conversation and the office, every everything.

Is about generating.

Is about generating.

You're investing in the area, of course we are, and how do you invest in the area.

You're investing in the area, of course we are, and how do you invest in the area.

So we have specifically focused on the impact of this level of generative AI for automation in the enterprise. So we think the biggest opportunity and the safest place to deploy these type of technology is inside the enterprise itself. Large banks, large telcos, pharmaceuticals, governments.

So we have specifically focused on the impact of this level of generative AI for automation in the enterprise. So we think the biggest opportunity and the safest place to deploy these type of technology is inside the enterprise itself. Large banks, large telcos, pharmaceuticals, governments.

Those are great places that you can wall.

Those are great places that you can wall.

In the learning itself and then be able to control and pace and govern how AI will be used.

In the learning itself and then be able to control and pace and govern how AI will be used.

You kind of have this race between Alphabet and the parent company of Google, Google and Microsoft and a person he may have called heard of, called Elon Musk wade into the middle of that. What do you make of the Elon Musk saying, you know what, I'm going to enter.

You kind of have this race between Alphabet and the parent company of Google, Google and Microsoft and a person he may have called heard of, called Elon Musk wade into the middle of that. What do you make of the Elon Musk saying, you know what, I'm going to enter.

The AI race.

The AI race.

Yeah, I think this will be something very difficult to end. You Just think about this, right, put it in context. We have not seen a disruptive technology like this since the late nineties. How the Internet has done the companies. Remember what had happened to Microsoft, they were behind in the browser war. So this is even bigger. We saw Microsoft gone out to do a deal. There's ten billion dollar plus with open Ai, a company nobody heard of until last year, right, so November November, Okay, So think of this context. And now they're using this to disrupt Google, which has a franchise have been going on forever on search worth one point three trillion dollars. This is the only time we've seen little company now have a chance to impact and make huge impact in the innovation of large companies.

Yeah, I think this will be something very difficult to end. You Just think about this, right, put it in context. We have not seen a disruptive technology like this since the late nineties. How the Internet has done the companies. Remember what had happened to Microsoft, they were behind in the browser war. So this is even bigger. We saw Microsoft gone out to do a deal. There's ten billion dollar plus with open Ai, a company nobody heard of until last year, right, so November November, Okay, So think of this context. And now they're using this to disrupt Google, which has a franchise have been going on forever on search worth one point three trillion dollars. This is the only time we've seen little company now have a chance to impact and make huge impact in the innovation of large companies.

We've been talking so much about AI that we haven't talked so much about crypto, and that was an area where you made some pretty fast and in some cases not as good bets. What is your reaction to that statement, I suppose, but also do you you know, would you change how you do your due diligence now how you look at that space.

We've been talking so much about AI that we haven't talked so much about crypto, and that was an area where you made some pretty fast and in some cases not as good bets. What is your reaction to that statement, I suppose, but also do you you know, would you change how you do your due diligence now how you look at that space.

Yeah, so with our adult crypto was you know, the last excitement that we saw in twenty twenty and twenty twenty one. We made some vact some very extremely good bets, you know, our contray to the believe itself.

Yeah, so with our adult crypto was you know, the last excitement that we saw in twenty twenty and twenty twenty one. We made some vact some very extremely good bets, you know, our contray to the believe itself.

So obviously we're in some bad bets. Oh and some bed better.

So obviously we're in some bad bets. Oh and some bed better.

I mean we learned a lot in this process, but we didn't make huge bed bets, you know, so I think that was what we are designed to do as an early stage Friendshire from you.

I mean we learned a lot in this process, but we didn't make huge bed bets, you know, so I think that was what we are designed to do as an early stage Friendshire from you.

Look at what had happened.

Look at what had happened.

Twipto is addressing a much smaller addressable market, so it's tem is far smaller than comparing to Lesli Jenei. So the merger of I will say Race Capital as the fun is. We always said we're all about infrastructure where there is work who were free, we do them more.

Twipto is addressing a much smaller addressable market, so it's tem is far smaller than comparing to Lesli Jenei. So the merger of I will say Race Capital as the fun is. We always said we're all about infrastructure where there is work who were free, we do them more.

So we have wa able to hash those kind of bets.

So we have wa able to hash those kind of bets.

All right, Race Capitals ouverage one, thank you so much. Lululemon is exploring the sale of Mirror only three years after buying the fitness equipment maker. This, according to sources, this comes as fitness focus hardware companies have struggled basically post pandemic as consumers head back to Jim's for in person workouts. Leana deal Leanna Baker, who leads our deals coverages here with more. It does feel like just yesterday that we were talking about this deal going ahead in the first place.

All right, Race Capitals ouverage one, thank you so much. Lululemon is exploring the sale of Mirror only three years after buying the fitness equipment maker. This, according to sources, this comes as fitness focus hardware companies have struggled basically post pandemic as consumers head back to Jim's for in person workouts. Leana deal Leanna Baker, who leads our deals coverages here with more. It does feel like just yesterday that we were talking about this deal going ahead in the first place.

As a long time deals reporter, we tend to see this. Companies will get in a mode where they're buying assets and then just a few years later they'll sell assets. Bankers luckily get to work on both sides of these deals each time, so everyone's happy in terms of getting paid. But lul Lemon, definitely here is looking to recoup some of that five hundred million that they invested in this.

As a long time deals reporter, we tend to see this. Companies will get in a mode where they're buying assets and then just a few years later they'll sell assets. Bankers luckily get to work on both sides of these deals each time, so everyone's happy in terms of getting paid. But lul Lemon, definitely here is looking to recoup some of that five hundred million that they invested in this.

Well, that raises the question ofvaluation. Are they going to sell it for more than they bought?

Well, that raises the question ofvaluation. Are they going to sell it for more than they bought?

At this point, we don't know what exactly this deal will fetch, but it does seem pretty clear that they won't get the five hundred million. I think they're just trying to recoup some of the investment. But from what I've seen, this hasn't performed that well for Lululemon.

At this point, we don't know what exactly this deal will fetch, but it does seem pretty clear that they won't get the five hundred million. I think they're just trying to recoup some of the investment. But from what I've seen, this hasn't performed that well for Lululemon.

It's unclear if it makes money.

It's unclear if it makes money.

The company took a charge of four hundred and forty three million an impairment charge earlier this year, so clearly it's not a huge money maker and that could weigh on the valuation.

The company took a charge of four hundred and forty three million an impairment charge earlier this year, so clearly it's not a huge money maker and that could weigh on the valuation.

It takes two to tango, sometimes more actually in a complicated piece of m anda.

It takes two to tango, sometimes more actually in a complicated piece of m anda.

But who could buy Mirror?

But who could buy Mirror?

It's a great question you mentioned before the changing habits for remote fitness and working out at home, and a lot of the companies in the space are challenged right now. So Peloton, let's say it could make sense as a buyer, but they don't have the money given all the challenges that are going on their Tonal.

It's a great question you mentioned before the changing habits for remote fitness and working out at home, and a lot of the companies in the space are challenged right now. So Peloton, let's say it could make sense as a buyer, but they don't have the money given all the challenges that are going on their Tonal.

Another company in the space, they.

Another company in the space, they.

Just switched out their CEO, they cut their valuation, so it is kind of unclear if there's a strategic competitor out there that could buy this potentially private equity. They love to look at unloved assets to see if they could do a turnaround, So I would imagine that the investment bankers that are working with Lululemon are casting a wide net to find a potential buyer.