ANNOUNCER:
FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER
COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS “BLOOMBERG
TECHNOLOGY” WITH CAROLINE HYDE AND ED
LUDLOW. MATT:
WE ARE LIVE FROM NEW YORK CITY. I AM MATT MILLER.
THIS IS “BLOOMBERG TECHNOLOGY.” U.S.
CEO’S ARE IN BEIJING AS CHINESE LEADERS PREPARE FOR TARIFFS
THAT EXCEED EXPECTATIONS. BYD BEATS, THE CHINESE ELECTRIC
VEHICLE MAKER POSTED MORE FOR YOUR REVENUE THAN TESLA EVEN AS
IT SOLD FEWER CARS. AND AN EXCLUSIVE INTERVIEW OF
WITH THE CEO OF AIRBUS AS THE COMPANY LOOKS TO RAMP UP
PRODUCTION OF THE NEXT GENERATION JETS.
FIRST, LET’S CHECK WHAT IS GOING ON IN THE U.S..
EVEN AS CHINA IS PREPARED FOR SHOCKS OF EXCEEDING ESTIMATES,
TRADERS SEEM TO THINK PRESIDENT TRUMP WILL HAVE TARGETED
TARIFFS. THAT HAS DRIVEN US TO SESSION
HIGHS. ON THE NASDAQ, UP OVER 20,000.
TESLA STOCK IS RIPPING FACE TODAY.
REGARDLESS OF WHAT HAPPENS AT BYD, TESLA UP 10% AFTER FALLING
50% IN DECEMBER. BYD UP FIVE POINT 7% AFTER
BEATING ON REVENUE AND THE BOTTOM LINE — 5.7% AFTER
BEATING ON REVENUE AND THE BOTTOM LINE.
NVIDIA ADDING 10 POINTS TO THE S&P 500.
AMD ALSO UP ON HOPES TARIFFS WILL BE TARGETED AS OPPOSED TO
SWEEPING. REAL FOCUS ON CHINA. THAT COUNTRY IS HOSTING ITS
ANNUAL DEVELOPMENT FORM. TOP EXECUTIVES ARE THERE
INCLUDING APPLE’S TIM COOK. THERE ARE PLANS TO MEET
PRESIDENT XI JINPING AND OTHER LEADERS.
WE HAVE HEARD THE CHINESE PREMIER SAID AT THIS TIME I
THINK IT IS EVEN MORE IMPORTANT FOR EACH OF OUR COUNTRIES TO
OPEN UP MARKETS AND FOR ALL OF OUR BUSINESSES TO SHARE
RESOURCES MORE. THIS AS THE WORLD BRACES FOR
PRESIDENT TRUMP TO ANNOUNCE MORE TARIFFS ON TRADING
PARTNERS APRIL 2. MIKE SHEPARD JOINS US.
IT SEEMS TRADERS ON WALL STREET ARE MORE OPTIMISTIC THAN
LEADERS IN BEIJING. WHY DO YOU THINK THERE IS THE
MISMATCH? >> IT COULD BE SOME OF WHAT WE
ARE HEARING IN WASHINGTON HAS NOT FILTERED BACK TO AUDIENCES
IN THE CHINESE CAPITAL. THERE IS ALSO THE NEED FOR
LEADERS IN CHINA TO TELL THE PUBLIC AND BUSINESSES TO BRACE
FOR THE WORST. IT IS A WAY FOR THEM TO SAY WE HAVE TO GET OUR
ACT TOGETHER DOMESTICALLY WITH OUR ECONOMY, ESPECIALLY IF THE
WORST COULD BE COMING. THEY ALSO KNOW THAT EVEN IF TRADERS AND JOURNALISTS ARE
HEARING FOR THE FIRST ROUND OF TARIFFS IT WILL NOT BE QUITE SO
BAD, THINGS ARE STILL VERY FLUID.
WE HEARD FROM A WHITE HOUSE OFFICIAL THIS MORNING, OUR
COLLEAGUE JOSH, WHOSE SCOOP OVER THE WEEKEND, ADDED TO THE
REPORTING, THAT THINGS MAY BE EASIER.
A WHITE HOUSE OFFICIAL SAID THINGS ARE NOT DECIDED YET.
THEY ARE STILL FLUID. WE MAY SEE THE TARIFFS PEOPLE
ARE WORRIED ABOUT ON CHIPS, AUTOS, AND DRUGS THAT MAY HAVE
BEEN PUT INTO PLAY EARLIER BY TRUMP MAY HAVE BEEN TAKEN OFF
THE TABLE FOR NOW. JOSH’S REPORTING IS SIGNALING
IT IS NOT A DONE DEAL YET. MATT: WHAT ARE WE EXPECTING?
I THOUGHT THE IDEA WAS WHATEVER YOU CHARGE US, WE ARE GOING TO
CHARGE YOU. IF EUROPE HAS 10% TARIFFS ON
AUTOS AND WE ONLY HAVE 2.5%, WE WILL RAISE OUR TARIFF TO THAT
LEVEL. SAME ON DAIRY PRODUCTS OR
MEEATS, ACROSS THE BOARD. I THOUGHT PRESIDENT TRUMP WOULD
CHARGE THEM WHAT THEY CHARGE US AND THAT KEEPS IT IN HIS MIND
FAIR. >> YOU ARE RIGHT.
HE HAD BEEN TALKING ABOUT TARIFFS IN TWO LINES.
ONE IS THE IDEA OF RECIPROCAL TARIFFS, WE CHARGE YOU WHAT YOU
CHARGE US. NO MATTER WHAT, THEY WILL FIND
A WAY TO EVEN THINGS OUT, THE WAY THE PRESIDENT LIKES TO TALK
ABOUT IT, TO KEEP IT FAIR IN HIS VIEW.
THEY ALSO TALKED ABOUT MEASURES IN WHOLE SECTORS PER THAT DID
INCLUDE COMPUTER CHIPS, PHARMACEUTICALS, AND AUTOS.
THE PLANNING FOR THAT WAS NOT AS CLEAR. WE HAVE GOTTEN SIGNALS ON THE
TYPICAL TARIFFS FRONT. SCOTT BESSENT HAS TRIED TO
NARROW THE PLAYING FIELD OF COUNTRIES IN GOODS AND
CATEGORIES THAT MIGHT BE TARGETED.
LAST WEEK, HE WAS TALKING ABOUT THE 15 WORST OFFENDERS, FOR
LACK OF A BETTER WORD, WHERE THEY WANT TO CONCENTRATE FIRST
IN TERMS OF CRAFTING RECIPROCAL TARIFFS.
AS WE SAW THIS MORNING WITH TRUMP ANNOUNCING TARIFFS ON
OTHER COUNTRIES THAT BUY OIL AND GAS FROM VENEZUELA,
ANYTHING COULD BE IN PLAY AT ANY MOMENT. WE ARE WAITING ANXIOUSLY OR
NERVOUSLY FOR WHATEVER COMES OUT ON APRIL 2 AND TRYING TO
REPORT THAT AHEAD OF TIME. MATT: MIKE SHEPARD FROM OUR
WASHINGTON, D.C., BUREAU. BYD SALES SURPASSED $100
BILLION MARK IN 2024, LEAPFROGGING ELON MUSK’S TESLA
ON REVENUE. BUT THE SHARES ARE NOT GAINING QUITE AS MUCH AS TESLA, UP 6%,
BUT TESLA IS UP 10% TODAY, THE BIGGEST GAIN SINCE NOVEMBER 11.
LET’S GET TO LONDON AND TALK WITH OUR CAR CZAR.
WHAT IS BYD DOING DIFFERENTLY FROM TESLA? >> I THINK THEY HAVE HAD THIS
CONSISTENT PLAYBOOK OF WE ARE GOING TO GIVE CONSUMERS A BROAD
RANGE OF VEHICLES. WE ARE NOT GOING TO BE DOGMATIC
ABOUT BATTERY ELECTRIC VEHICLES ONLY.
WE ARE GOING TO OFFER PLUG-IN HYBRIDS AS WELL. THE FACT WE HAVE SEEN A GLOBAL
TREND EVEN IN PLACES LIKE CHINA WHERE BATTERY ELECTRIC VEHICLES
IS MANY MULTIPLES OF WHAT GETS SOLD ANYWHERE ELSE IN THE
WORLD, EVEN THERE WE ARE SEEING SLOW DOWN IN TERMS OF THE
TAKE-UP OF FULLY ELECTRIC VEHICLES.
WE ARE SEEING AN ACCELERATION IN DEMAND FOR PLUG-IN HYBRIDS.
BYD HAS BEEN ON THE LEADING EDGE OFFERING EXTENDED RANGE
ELECTRIC VEHICLES. IF YOU THINK BACK TO THE CHEVY
VOLT GENERAL MOTORS BROUGHT OUT MORE THAN A DECADE AGO, IT IS
SIMILAR WITH THAT KIND OF TECHNOLOGY WHERE THE ENGINE IS
NEVER DIRECTLY POWERING THE WHEELS. THEIR ABILITY TO OFFER PLUG-IN
AND HYBRID AND FULLY ELECTRIC VEHICLES AT EXTREMELY
AFFORDABLE PRICES HAS ALLOWED THEM TO ACHIEVE SCALE TESLA CAN
ONLY DREAM OF AT THIS POINT. MATT:
I KNOW JIM FARLEY IS PUMPED ABOUT THE E-REVS, SO HAVING AN
ENGINE ON BOARD THAT POWERS THE BATTERY AND NOT THE WHEELS.
WE WILL START SEEING THOSE COME OUT OF DETROIT SOON AS DODGE
WILL PUT OUT THE E-REV CHUCK. — TRUCK.
I NOTICED BYD HAS RAISED MORE THAN $5 BILLION IN THE
SECONDARY OFFERING. COMING FROM A NEW YORK
PERSPECTIVE WHERE IPO’S ARE FAIRLY SLOW, HONG KONG LOOKS
LIKE IT IS ON FIRE. THIS HELPS THE COMMUNIST PARTY
TO POWER AHEAD ON EV’S IN A WAY THAT IS NOT POSSIBLE TO DO IN
AMERICA. CRAIG: I THINK THAT IS ABSOLUTELY THE
RIGHT READ. WE DID SEE A FEW YEARS BACK
TESLA RAISE AT AN INCREDIBLE RATE WHEN THEY WERE GETTING
MOMENTUM WITH THE MODEL 3 AND MODEL Y.
TESLA WENT FROM A COMPANY STRUGGLING TO STAND ON ITS OWN
TWO LEGS AND ACHIEVED ESCAPE VELOCITY AND TAPPED WALL STREET
FOR A LOT OF MONEY. WE DID SEE AN ACTIVE
ENVIRONMENT WHEN YOU THINK BACK TO THE LIKES OF LUCID OR RIVIAN
THROUGH IPO. WE DID GO THROUGH THIS SPURT OF
ACTIVITY IN THE U.S. TO YOUR POINT, WE ARE SEEING
THIS WITH BYD. EVEN CATL LOOKING TO DO A
SECOND OFFERING IN ASIA. WE ARE SEEING AN ACCELERATION
OF MAJOR PLAYERS IN THAT SPACE, RAISING AN AWFUL LOT OF MONEY
EVEN BY TERMS OF BIG AUTOMOTIVE COMPANIES THAT ARE CASH HUNGRY.
MATT: THANKS SO MUCH FOR JOINING US.
CRAIG TRUDELL, OUR CAR CZAR. COMING UP, THE CEO OF IDENTITY
PROTECTION APP AURA JOINS US TO TALK ABOUT
THE NEW TOOLS AIMED AT PROTECTING YOUTH MENTAL HEALTH.
I’M WATCHING SHARES OF THE GERMAN SOFTWARE DEVELOPER UP
1.5%. RIGHT NOW, THE LARGEST COMPANY MATT:
AS PARENTS LOOK TO KEEP THEIR KIDS SAFE ONLINE, IDENTITY
PROTECTION FIRM AURA HAS RELEASED NEW TOOLS TO TRACK
YOUTH MENTAL HEALTH. THE CEO AND THE COMPANY’S
BIGGEST INVESTOR ARE WITH ME. I APPRECIATE YOU JOINING ME ON
THIS TOPIC. I THINK IT IS FINALLY GETTING
THE ATTENTION IT DESERVES, THE DAMAGE SOCIAL MEDIA AND
TECHNOLOGY DO TO THE MENTAL HEALTH OF OUR CHILDREN. JEFF, LET ME START WITH YOU AND
ASK WHAT BROUGHT YOU TO THIS INVESTMENT?
WHAT PUT YOU ON THIS PATH? JEFF:
I SPENT 40 YEARS IN THE MEDIA AND ENTERTAINMENT BUSINESS AT
THE WALT DISNEY STUDIOS AND DREAMWORKS AND EVERY DAY GOT UP
AND WAS IN THE WORLD OF BRINGING TO PARENTS AND KIDS
SAFE CONTENT AND THE APPRECIATION OF WHAT THAT MEANS.
TODAY, KEEPING OUR KIDS SAFE HAS NEVER BEEN MORE CHALLENGING
OR COMPLICATED BECAUSE OF THESE DEVICES AND THE ONLINE LIVES
THAT WE HAVE. WHEN I PARENTED MY KIDS, THERE
WERE THREE THINGS I WANTED TO KNOW. WHERE ARE THEY?
WHAT ARE THEY DOING? AND WHO ARE THEY WITH?
TODAY, YOUR KID CAN BE SITTING ACROSS FROM YOU AT THE KITCHEN
TABLE WITH A PHONE IN YOUR HAND AND YOU CANNOT ANSWER THOSE
THREE QUESTIONS. AS YOU SAID, THERE IS A GROWING
EPIDEMIC OF HOW DAMAGED AND DAMAGING WE ARE DOING TO OUR
KIDS TODAY, THIS GENERATION. IT IS EXTRAORDINARY.
I WILL READ A FEW STEPS TO FRAME HOW BIG THE PROBLEM IS.
20% OF ADOLESCENTS REPORT LOW SELF-ESTEEM. 52% HAVE EXPERIENCED OR ARE
EXPERIENCING AN EATING DISORDER. 70% OF TEENS SAY ANXIETY AND
DEPRESSION IS A MAJOR PART AMONG THEIR PEERS. AND A SHOCKING 25% HAVE
IDEATION AROUND SUICIDE. THIS IS JUST — WE ARE
DESTROYING OUR KIDS. WHAT HARI HAS DONE AS THE
FOUNDER OF THIS, THROUGH HIS OWN PERSONAL EXPERIENCE THAT HE
SHOULD TELL YOU ABOUT DEALING WITH HIS OWN FAMILY, GOT ON
THIS MISSION TWO YEARS AGO TO SAY, HE BUILT A COMPANY TO
BRING SECURITY FOR FAMILIES ONLINE, NOW HE WILL BRING
SAFETY. MATT: TELL US ABOUT YOUR EXPERIENCES
BEFORE STARTING THIS COMPANY AND HOW YOU ARE SOLVING THE
PROBLEM. HARI: I HAVE FOUR KIDS. ONE OF MY KIDS ABOUT TWO YEARS
AGO WAS GOING THROUGH A TOUGH PATCH FEELING DEPRESSED,
FEELING DOWN, SOME NEGATIVE COPING STRATEGIES WHICH WAS
FRIGHTENING TO US AS A FAMILY. LEADING UP TO THAT, WE ARE A
TIGHTKNIT FAMILY. WE SPEND TIME TOGETHER, ASK HOW
SHE IS DOING, SHE SAYS EVERYTHING IS FINE.
AS WE ARE GOING THROUGH THE RECOVERY CYCLE, WE ASK HOW SHE
IS DOING, SHE SAYS I AM DOING FINE.
AS A PARENT, YOU ARE WONDERING, SHE IS SAYING THE SAME THING,
IS SHE FINE OR NOT? WE STARTED LOOKING AROUND FOR
TOOLS. DURING THAT JOURNEY, WE WERE
PRIVACY ORIENTED, DURING THE JOURNEY, WE DID SPEND TIME WITH
THE DEVICE AND THERE WERE THINGS I WISH WE HAD FOUND
EARLIER BECAUSE WE MIGHT HAVE BEEN ABLE TO HELP HER SOONER.
THERE WAS NOT ANYTHING TO GO DO THIS IN A SYSTEMATIC WAY.
WE WERE ALREADY HELPING A LOT OF FAMILIES WITH THE CONTENT
PROBLEMS THEIR KIDS HAD. THIS WAS A NATURAL ENTRÉE FOR
US AND A TOOL I NEEDED FOR MY OWN KIDS, SO I FIGURED THERE
ARE ALSO FAMILIES THAT CAN USE THE SAME TECHNOLOGY AS WELL.
MATT: JEFF, HOW DO YOU DEAL WITH THIS
IN YOUR FAMILY? WE HAVE HEARD RECENTLY FROM
KATE WINSLET WHO SAID HER METHOD IS JUST TO BAN ALL
SOCIAL MEDIA HER CHILDREN. JEFF: IT IS IMPRACTICAL.
WHAT YOU NEED TO DO AS A PARENT IS YOU NEED TOOLS AND INSIGHTS
TO BE ABLE TO NAVIGATE AND HELP YOUR KIDS NAVIGATE THROUGH
THESE CHALLENGES. WHAT YOU NEED FOR A 12-YEAR-OLD
OR 13-YEAR-OLD IS DIFFERENT FROM WHAT YOU NEED FOR A
16-YEAR-OLD OR 17-YEAR-OLD. WHAT AURA HAS CREATED AND IS
DELIVERING IS NOT SPYING, IT IS ABOUT GIVING THE PARENT
INSIGHTS. GIVING YOU ENOUGH KNOWLEDGE.
YOU CAN STILL GIVE YOUR KIDS A LOT OF LEEWAY AND PRIVACY.
YOU AS A PARENT ARE NOT GOING TO READ THEIR TEXTS.
IF YOU DO THAT, THEY WILL FIND A WAY TO GET AROUND.
THEY WANT SOME HELP, THEY WANT GUIDANCE.
WE HEAR THAT FROM THE BETA, THE KIDS ON IT TODAY.
THE ANALOGY WE GIVE YOU IS THAT WHEN YOUR CHILD TURNS 16 AND
GETS A DRIVER’S LICENSE, YOU DO NOT SEND THEM OUT ON THE
HIGHWAY DOING 65 MILES AN HOUR WITHOUT PRACTICE, COACHING, AND
EXPERIENCE AND TIME. WHY WOULD THIS BE DIFFERENT?
WHY SHOULD YOU BE OUT THERE IN THAT WORLD IN THE WILDERNESS
WITH NO GUIDANCE, NO HELP? PARENTS RIGHT NOW ARE REALLY
STRUGGLING WITH THIS. IT IS WHY I AM PROUD TO BE ON
THIS MISSION WITH HARI BECAUSE I THINK HE HAS CREATED
SOMETHING THAT HAS GONE FROM A NICE TO HAVE TO SOMETHING
ESSENTIAL. WE HEAR IT ALL THE TIME,
PARENTS ARE DESPERATE FOR HELP. MATT: IS IT AN ARMS RACE? HAVE YOU FOUND A SOLUTION THAT
WILL WORK FOREVER OR DO YOU HAVE TO CONTINUALLY DEVELOP THE
TOOLS AS SOCIAL MEDIA CONTINUES TO DEVELOP? HARI:
THERE IS CONTINUING INNOVATION. PEOPLE DO CATCH UP FROM BEHIND. THE COMPETITIVE SET WITH THE AI
REVOLUTION, BUILDING THINGS IS EASIER.
YOU HAVE TO KEEP EVOLVING THE TECH AND FINDING MORE USE CASES.
YOU HAVE TO DO A LOT MORE THAN THAT ESPECIALLY WITH AI MAKING
THINGS SO UBIQUITOUS. MATT: CAN YOU WORK WITH OTHER SOCIAL
MEDIA COMPANIES? JEFFREY KATZENBERG, YOU MUST
KNOW SOME EXECUTIVES WHO RUN FACEBOOK OR TWITTER.
CAN’T THEY BE HELPING AS WELL? IS IT A PROBLEM THEY SHOULD BE
AWARE OF? JEFF: MAYBE THEY CAN, BUT THEY HAVE
THEIR MISSIONS THEY ARE ON. I WANT TO BE CLEAR.
NOT ALL SOCIAL MEDIA IS BAD. THERE HAVE BEEN INCREDIBLE
VALUE IS CREATED IN TERMS OF COMMUNITY, COMMUNICATIONS, AND
KNOWLEDGE, AND EXTRAORDINARY ACCESS WE HAVE AND THE NEW
GENERATION HAS WITH THESE TOOLS. THIS IS A BYPRODUCT OF IT. THE DEEP, DARK RABBIT HOLES
THAT ONE CAN GO DOWN OR GET SUCKED INTO.
WE ARE NOT POINTING FINGERS AT ANYBODY.
WE ARE CREATING A SOLUTION. FRANKLY, I WOULD THINK THOSE
COMPANIES WOULD BE THRILLED WITH THIS SOLUTION. IN MY OPINION AND EXPERIENCE,
THEY COME OUT OF A PERSON WITH ENOUGH TECHNICAL EXPERIENCE AND
KNOWLEDGE IN AN AREA WHO SUDDENLY COMES UPON A MISSION.
HARI FROM HIS EXPERIENCE WITH HIS OWN FAMILY HAS BEEN MISSION
DRIVEN FOR THE LAST TWO YEARS. I THINK THAT IS WHAT HAS
CREATED SOMETHING SO VALUABLE, PRACTICAL, AND OF THE MOMENT IN
TIME. MATT: I APPRECIATE YOU BOTH COMING BY
TO TALK ABOUT THIS. THIS IS AN ISSUE BLOOMBERG IS
FOCUSED ON AS WELL. I THINK ALL OF US CERTAINLY AS
PARENTS. THANK YOU, JEFFREY KATZENBERG
AND HARI RAVICHANDRAN OF AURA. I HAVE NEWS ON THE BLOOMBERG. XIAOMI IS LOOKING TO RAISE $5.5
BILLION. NOW THEY COULD RAISE MORE.
SHARES INTRADAY ARE DOWN 1.3%. COMING UP, BITCOIN BRINGS ALONG
SOME OF ITS BIGGEST INVESTORS. WE WILL GIVE YOU MORE ON THAT
AND COINBASE, NEXT. I AM ALSO WATCHING SHARES OF
SUPER MICRO COMPUTER. THOSE SHARES DOWN IN TODAY’S
UPMARKET. WE WILL TELL YOU WHY WHEN WE
COME BACK. MATT:MATT:
STRATEGY AND BITCOIN BOTH RISING. THEY BOUGHT BITCOIN AFTER THE
COMPANY RAISED MORE THAN $700 MILLION LAST WEEK FROM THE SALE
OF PERPETUAL STOCK. DAVID JOINS US IN STUDIO.
I GUESS IT IS SEMI-INTERESTING, AT LEAST IN TERMS OF THE WAY
THEY RAISE MONEY. WHAT IS PERPETUAL STOCK? DAVID:
IT IS LIKE A DEBT CAPITAL RAISE. IT IS DIFFERENT FROM
CONVERTIBLE BOND RAISES. I THINK IT IS A SIGN OF THEIR
EFFORT TO TAP INTO ALL DIFFERENT KIND OF LEVERS TO
RAISE CAPITAL FOR MORE BITCOIN FROM NOW ON. MATT:
THAT IS ALL STRATEGY DOES. THEY HAVE A SMALL BUSINESS ON
THE SIDE, A SOFTWARE BUSINESS? DAVID: THE ENTERPRISE SOFTWARE
BUSINESS USED BY A VARIETY OF COMPANIES INCLUDING MCDONALD’S. IT HAD MORE SIGNIFICANT CASH
FLOW BEFORE. THIS YEAR WITH THE GAINS FROM
THE BITCOIN HOLDINGS, IT IS LESS SIGNIFICANT ON THE BALANCE
SHEET. MATT: IT SEEMS THIS COMPANY IS ALL
ABOUT THE BITCOIN HOLDINGS, BITCOIN IS UP TODAY.
IT LOOKS LIKE WITH THE RISK ON MOOD OF THE MARKET, HAS THERE
BEEN ANY REVERSAL OF THAT CORRELATION?
IS IT JUST HOW BITCOIN TRADES? DAVID:
TYPICALLY WHEN WE SEE BITCOIN GOING DOWN, THERE TENDS TO BE A
STRONGER CORRELATION WITH THE STOCK MARKET.
THAT IS AN HISTORICAL TREND. WE ARE SEEING MACROECONOMIC
FACTORS PLAYING A MORE IMPORTANT ROLE IN TERMS OF
BITCOIN PRICES, DESPITE A LOT OF POSITIVE EVENTS THE LAST FEW
WEEKS. THOSE KIND OF EVENTS HAVE NOT
BEEN HAVING ANY BIG, POSITIVE IMPACT ON BITCOIN PRICES
COMPARED TO MACRO. MATT: IF THE GOVERNMENT DOES NOT BUY
NEW BITCOIN FOR THE STRATEGIC WERE DESERVE — RESERVE, THAT
IS NOT AS POSITIVE AS BEFORE. 2025 SHAPING UP TO BE A BIG
YEAR IN M&A WITH NEARLY $55 MATT: WELCOME BACK TO “BLOOMBERG
TECHNOLOGY.” I AM MATT MILLER IN NEW YORK.
LET’S CHECK ON THE MARKETS. AS OPTIMISM FOR TARGETED
TARIFFS RATHER THAN SWEEPING TARIFFS BOOST THE INDEXES, THE
NASDAQ UP 2% EVEN THOUGH WE HAVE NINE DAYS UNTIL THE
TARIFFS ARE SET TO TAKE EFFECT ON APRIL 2.
LET’S LOOK AT BIG MOVERS. TESLA CRUSHING IT TODAY UP MORE
THAN 9%. WE HAVE SEEN AMAZING INFLOWS.
J.P. MORGAN WAS OUT WITH DATA SHOWING RETAIL INVESTORS HAVE
PUMPED $8 BILLION INTO THE STOCK IN THE 13 DAYS THROUGH
LAST THURSDAY EVEN AS IT FELL 17%.
THAT IS BECAUSE ELON MUSK HAS SERIOUSLY DEDICATED FAN BOYS ON
TWITTER. NVIDIA ADDING 10 POINTS TO THE
S&P 500. META AND AMAZON BRINGING UP THE
REAR. TECH DRIVING THE GAINS ON THE
INDEX. TAKING A LOOK AT A FUND USING
AN AI-POWERED MODEL WARNING AGAINST BUYING AI STOCKS HAS
RETURNED 26% ANNUALLY THE PAST FIVE YEARS SO MAYBE ONE THAT
YOU WANT TO LISTEN TO. WHAT ARE WE TALKING ABOUT? >> WE ARE LOOKING AT A FUND
OVERSEEN BY DANIEL THAT HAS OUTPERFORMED PEERS 95% IN THE
LAST FIVE YEARS AND EVEN THE RUSSELL.
HE SAYS THE TECH COMPANIES ARE STILL VOLATILE AND EVEN THE
SELLOFF HAVE NOT MADE THESE COMPANIES CHEAP.
HE STILL FINDS THEM HAVING FROTH VALUATIONS AND FINDS THEM
VOLATILE IN THE PAST WEEKS AND THE YEARS TO COME.
HE SAYS HE IS PREFERRING OTHER SECTORS. THE THING ABOUT HIS FUND IS IT
HAS A DECISION TREE ANALYSIS THAT MIMICS HUMAN THINKING.
MATT: WHY DOES HE NOT LIKE TECH STOCKS A? >> HE SAYS THEY ARE VOLATILE
AND HAVE FROTHY VALUATIONS. HE IS STILL INVESTED IN THEM
BUT UNDERWEIGHT. WE KNOW ACTIVE MANAGERS HAVE
OUTPERFORMED PASSIVE INVESTORS THE PAST FEW YEARS.
HE STILL OUTPERFORMS EVEN IF HE IS NOT ALL IN ON BIG TECH
STOCKS. HE DOES NOT TRY TO FOLLOW
FUNDAMENTAL NEWS EVEN WITH THE HEADLINE DRIVEN MARKETS WITH
TARIFFS. HE SAYS HE DOES NOT WANT TO
HAVE ANY BINARY OUTCOME. HE IS INTERESTED IN THE
FUNDAMENTALS OF THE STOCKS AND THAT IS WHY HE IS UNDERWEIGHT
MEGA CAP STOCKS. MATT: DOES HE HAVE ANY DISCRETION IN
THE FUND? IT IS NOT SET PARAMETERS FROM A
PROGRAM? >> IT USES DECISION TREE
ANALYSIS. THERE IS A BRANCH. YOU ANSWER YES OR NO. IT HAS A BLACK BOX SYSTEM.
WITH HIM, YOU CAN SEE THE RATIONALE BECAUSE OF THE
DECISION TREE MODEL. HE ALMOST NEVER TRIES TO INSERT
HIS DISCRETION UNLESS THERE IS ROUGH INPUT WHEN IT COMES TO
DATA. HE HAS BEEN DOING IT THE PAST
20 YEARS. MATT: HE DOES STICK TO THOSE
PARAMETERS AND IT DOES NOT HURT RETURNS APPARENTLY.
THANK YOU, ISABELLE LEE. START UP ACQUISITIONS HAVE
KICKED OFF 2025 WITH A BOOM AS EVIDENCED BY THE 32 BILLION
DOLLARS GOOGLE DEAL FOR THE CYBERSECURITY FIRM.
HERE WITH MORE IS KATIE ROOF JOINING US IN STUDIO.
GOOD TO HAVE YOU ON THIS SIDE OF THE CONTINENT. M&A OVERALL HAS BEEN KIND OF A
SNOOZE COMPARED TO WHAT WE WERE EXPECTING.
IN YOUR CORNER OF THE UNIVERSE WHICH IS VENTURE CAPITAL AND
START-UPS, IT HAS BEEN ON A TEAR. KATIE: WE HAVE SET A RECORD FOR
DOLLARS BUT ALREADY TIED THE QUARTERLY RECORD.
WE HAVE HAD $11 BILLION START UP SALES. WE HAVE ONE WEEK LEFT.
PART OF THIS IS DRIVEN BY THE PERCEPTION TRUMP WILL BE BETTER
FOR REGULATION. THERE HAVE BEEN MIXED COMMENTS
ON THAT. THAT DID PLAY A ROLE WITH WIZ.
THEY TURNED IT DOWN THE OFFER FROM GOOGLE LAST YEAR BECAUSE
THEY WERE WORRIED ABOUT THE ADMINISTRATION BLOCKING DEALS.
THEY ARE HOPING THIS TIME WILL BE BETTER.
THERE ARE OTHER FACTORS. THERE IS MARKET VOLATILITY
PARTLY DUE TO THE TARIFFS. DAVE CHEN SAID START-UPS SAYING
THE VOLATILITY MAKES THEM MORE LIKELY TO SELL BECAUSE THEY ARE
WORRIED ABOUT IPO. MATT: VOLATILITY IS ANOTHER WORD FOR
DROPS, I HAVE LEARNED. WE HAVE SEEN A CORRECTION IN
THE TECH SECTOR AND THE BROADER MARKET.
DOES THIS MARKED A BOTTOM? WILL WE SEE A TURN AROUND?
KATIE: IN TERMS OF IPO’S, WE ARE LOOKING AT UP TO EIGHT
VENTURE-BACKED WHICH IS MORE THAN WE HAVE SEEN IN RECENT
YEARS. THERE ARE 1000 THAT HAVE YET TO
EXIT PIT THEY NEED TO IPO OR GET ACQUIRED.
EVEN IN THE 11 START UP SALES COMING UP, WE ARE NOT EVEN
CLOSE TO WHAT WE NEED FOR LIQUIDITY IN THE ECOSYSTEM.
MATT: I GUESS THAT MEANS THIS WILL
CONTINUE. WILL WE CONTINUE TO SEE RECORD
M&A IN START-UPS? KATIE: POSSIBLY.
ESPECIALLY IF THEY FEEL THE BAR HAS GOTTEN HIGH TO IPO AND
MARKET CONDITIONS ARE NOT PERFECT LIKE 2021, WE MAY SEE
SOME TAKING THAT BIRD IN HAND EVEN IF IT WAS NOT THEIR DREAM
PRICE. MATT: KATIE ROOF TALKING TO US ABOUT
START UP M&A. COMING UP, AN EXCLUSIVE
CONVERSATION WITH THE CEO OF AIRBUS. THIS IS BLOOMBERG. ♪ PODCAST. YOU CAN FIND IT ON THE
TERMINAL AS WELL AS AT APPLE. >> WELCOME BACK TO “BLOOMBERG
TECHNOLOGY.” I AM GUY JOHNSON TAKING OVER
FROM MATT MILLER THE NEXT FEW MINUTES.
I’M TAKING YOU TO THE AIRBUS HEADQUARTERS IN FRANCE WHERE
CUTTING-EDGE TECHNOLOGY IS A DAY TO DAY ACTIVITY. WE ARE AT THE AIRBUS SUMMIT
DISCUSSING WHAT IS HAPPENING WITH THE NEXT GENERATION OF
AIRCRAFT AND TECHNOLOGY THAT WILL GO INTO THEM.
I HAVE THE PLEASURE OF BEING JOINED BY THE CEO OF AIRBUS.
FANTASTIC TO BE WITH YOU AT THE SUMMIT. THE SUMMIT WE ARE AT AT THE
MOMENT, THE BIG FOCUS IS SUSTAINABILITY. THE BIG TECHNOLOGY WE ARE
TALKING ABOUT IS SUSTAINABLE AVIATION FUEL.
OTHER TECHNOLOGIES BECKON IN THE FUTURE. >> THE TARGET NOW IS TO MAKE
AVIATION NET-ZERO COMMON BY 2050. IS THAT STILL ACHIEVABLE? >> IT REMAINS THE TARGET.
THERE ARE PLENTY OF REASONS TO BELIEVE IT CAN BE ACHIEVED.
THERE ARE ALSO SOME CHALLENGES. THE REASON WE HAVE THE SUMMIT
IS TO DISCUSS THOSE TOPICS, WHAT GOES WELL, WHAT NEEDS TO
BE DONE DIFFERENTLY. AIRBUS REMAINS COMMITTED TO
CARBON NEUTRALITY BY 2050. TOMORROW, WE WILL BE SHARING
GOOD NEWS ON PROGRESS. WE KNOW WE NEED TO DO MORE WORK
ON IT. GUY: IS IT POSSIBLE WITH DONALD
TRUMP IN THE WHITE HOUSE? HE DOES NOT SEEM TO SEE THE
UNITED STATES AT THE FOREFRONT OF GREEN TECHNOLOGY.
IN FACT, HE IS GOING IN THE OPPOSITE DIRECTION.
CAN 2050 BE ACHIEVED WITH DONALD TRUMP IN THE WHITE HOUSE?
>> IT RELIES ON DIFFERENT PILLARS.
ONE OF THEM IS THE PLANES THEMSELVES.
THAT IS WHAT WE ARE DOING. FOR PLANES, COMPETITIVENESS
MEANS FUEL EFFICIENCY. FUEL EFFICIENCY MEANS SYSTEM
TECHNOLOGY. AIRLINES WILL CONTINUE TO BUY
PREFERABLY PLANES THAT BURN LESS FUEL, WHATEVER THE FUEL.
IT IS IMPORTANT TO HAVE UNITY. WE NEED A GLOBAL LEVEL PLAYING
FIELD. WE NEED TO UNDERSTAND BETTER
WHAT IT MEANS FOR THE U.S. AND TO WHAT EXTENT OTHERS WILL
KEEP MOVING AT THE SAME PACE. WE SEE DIFFERENT DYNAMICS IN
DIFFERENT PLACES IN THE WORLD. EUROPE HAS GONE ALONE PUTTING
MANDATES. IT WAS ALREADY DIFFERENT WITH
THE PREVIOUS ADMINISTRATION IN THE U.S.
CHINA IS GOING ALSO ANOTHER WAY. THAT IS ONE OF THE PROBLEMS. WE
NEED THIS TO BE UNIFIED. GUY: YOU JUST CAME BACK FROM CHINA.
ARE THEY GOING TO LEAPFROG THE WAY WE HAVE SEEN THEM DO IN
ELECTRIC CARS? >> THEY ARE SERIOUS ON THE
TRANSITION. THEY ARE SERIOUS ON DE-CARBONIZED ENERGY.
THE USE OF SOLAR, WIND, NUCLEAR. I THINK ONE HALF TO TWO THIRDS
OF DE-CARBONIZED ENERGY LAST YEAR WAS COMING FROM CHINA.
THEY ARE MOVING AT THE RIGHT PACE.
YES, THERE IS A LIKELIHOOD THEY WOULD GO FASTER THAN OTHERS ON
DE-CARBONIZED TECHNOLOGIES WITH THE RISK WE WOULD SEE IN
AVIATION FUELS WHAT WE SEE TODAY IN ELECTRIC CARS.
AS A PARTNER, WE CAN RELY ON THEM FOR THE DEVELOPMENTAL
STUFF. GUY: IN EUROPE, IT SEEMS SECURITY IS
MORE IMPORTANT TO EUROPE THAN SUSTAINABILITY.
DO YOU SEE IT THAT WAY? IS IT HOW IT IS DEVELOPING? >> I DO NOT THINK IT IS MORE
IMPORTANT. I THINK IT IS A PRECONDITION.
YOU NEED SECURITY TRAP PROSPERITY.
YOU NEED PROSPERITY TO CLIMATE YOUR TRANSITION.
SECURITY COMES FIRST. I DO NOT THINK THERE IS COMPETITION
BETWEEN DIFFERENT INVESTMENTS AT THE MOMENT, AT LEAST FOR US.
WE HAVE DIFFERENT BUSINESSES. THERE IS MORE THAT WILL GO TO
SPACE AND DEFENSE THAN IN THE PAST. WE THINK IT IS IMPORTANT
FOR THE SECURITY OF EUROPE. GUY: YOU TALK ABOUT SPACE, ONE OF
THE KEY PIECES EUROPE HAS RELIED ON IS STARLINK USED IN
UKRAINE. HOW QUICKLY CAN EUROPE REPLICATE SOMETHING? >> THE CONSTELLATION IS LARGE
IN THE AIR. WE HAVE CONSTELLATIONS FLYING
ALREADY BUT THEY ARE MUCH SMALLER.
WE NEED COUNTRIES TO COME TOGETHER AND WE NEED THE
INDUSTRY TO COME TOGETHER TO SUPPLY. EUROPE NEEDS SCALE. WE HAVE SIMILAR TECHNOLOGIES
BUT IT NEEDS TO MOVE TO A PROJECT AT SCALE.
IT WILL TAKE A BIT OF TIME. WE ARE MOVING AS FAST AS WE CAN.
WE ARE IN DISCUSSIONS WITH OUR FRIENDS FROM LEONARDO AND TELL
IS TO CREATE A JOINT COMPANY FOR MANUFACTURING. IT IS A JOINT VENTURE BETWEEN
COMPANIES CREATING SCALE IN EUROPE TO BE COMPETITIVE ON A
GLOBAL SCALE. GUY: CAN YOU DO THE SAME ON DEFENSE? >> IT WILL BE MORE DIFFICULT
BECAUSE OF THE SOVEREIGNTY FOR SECURITY AND DEFENSE AT THE
LEVEL OF NATIONS. WE NEED COUNTRIES TO COME
TOGETHER WITH COMMON PROJECTS TO CREATE THAT SCALE. WE ARE TOO FRAGMENTED ON
DEFENSE IN EUROPE. NOW THAT IS ACKNOWLEDGED, WE
NEED TO FIND SOLUTIONS. GUY: IN TERMS OF HOW YOU DEVELOP
AIRBUS FROM HERE, THE PAST FEW YEARS, IT HAS BEEN CIVIL
FOCUSED. DO YOU SEE SPACE, DEFENSE
BECOMING SIMILAR SCALE ARMS OF AIRBUS?
IS THAT GOING TO BE THE FUTURE? IS THE DEFENSE ARM, HIS FACE
GOING TO BE SUBSCALE? HOW QUICKLY CAN YOU GET IT TO
SCALE? WOULD BE SOMETHING SIMILAR TO
WHAT WE SEE ON THE CIVIL SIDE? >> WE ARE AIRBUS IN DEFENSE AND
HELICOPTERS. WE HAVE CREATED TO SCALE AND
HELICOPTERS IN THE PAST. WE ARE THE NUMBER ONE HELICOPTER
MANUFACTURER IN THE WORLD. THAT IS SOMETHING WE ARE DOING
IN OTHER AREAS OF BUSINESS AND COMMERCIAL. WE ARE AIRBUS IN DEFENSE WITH
PROJECTS WHERE EUROPEAN COUNTRIES PARTNER TOGETHER TO
CREATE A PROJECT THAT IS THE BEST IN THE WORLD AT THE MOMENT.
IT IS THE DNA OF US TO BRING COLLABORATION AND PARTNERSHIPS
AND CREATE A PROJECT AT THE RIGHT SCALE WITH THE RIGHT
SCALE OF INVESTMENTS AND THE RIGHT COMPETITIVENESS. GUY:
DO YOU THINK DONALD TRUMP IS BRINGING EUROPE TOGETHER?
EUROPE RELIES ON A CRISIS. IS THIS A BIG ENOUGH CRISIS? >> EUROPE IS MAKING PROGRESS.
WE ARE CHALLENGED BY A NUMBER OF THINGS CHANGING IN THE WORLD.
EUROPE NEEDS TO TAKE SECURITY AND DEFENSE IN ITS OWN HANDS.
IT MAKES SENSE. THAT IS WHAT EUROPE IS DOING.
UNDER A NUMBER OF PRESSURE POINTS. UKRAINE IS ONE OF THEM. EUROPE NEEDS TO TAKE ITS
DESTINY IN ITS HANDS. GUY: DONALD TRUMP TALKS ABOUT HOW
HIS FAVORITE WORD IS TARIFFS. WHAT DO YOU EXPECT IN TERMS OF
TARIFFS? HOW IS IT IMPACTING AIRBUS? THE AIRCRAFT BEHIND YOU COME
FROM FRANCE, THE ENGINES FROM AMERICA.
THE AIRCRAFT IS AN AIRCRAFT OF THE WORLD.
THAT CREATES VULNERABILITY. HOW ARE YOU THINKING ABOUT
TARIFFS? WHAT IS THE IMPACT ALREADY? >> WE HAD TARIFFS ON AIRCRAFT
FOUR OR FIVE YEARS AGO BETWEEN THE U.S. AND EUROPE.
IT WAS A LOSE-LOSE. WE HAD A CEASE FIRE IN 2021. IT WAS INTERESTING SHOWING BOTH
SIDES OF THE ATLANTIC IT IS ONLY LOSE-LOSE WITH TARIFFS.
WE DO NOT HAVE TARIFFS ON AIRCRAFT AND AVIATION AT THE
MOMENT. I THINK THAT IS A GOOD SIGN.
THERE IS NOTHING MORE TO PREPARE THAN TO COMMUNICATE, TO
EXCHANGE, TO EXPLAIN. WE HAVE A LOT OF CROSS
STRUCTURE IN MANUFACTURING. WE ARE PARTNERING WITH THE U.S..
WE ARE SELLING TO THE U.S.. U.S. MANUFACTURERS ARE DOING THE
SAME WITH EUROPE. IT WOULD BE A BURDEN FOR BOTH
SIDES. IT MIGHT BE TOUGHER FOR THE U.S.
MANUFACTURERS. GUY: HAVE YOU BEEN PUTTING EXTRA
RESOURCES IN? HAVE YOU BEEN STOCKPILING? IAANY PREPARATIONS TO GET READY
FOR SOMETHING THAT COULD BECOMING? >> WE KEEP DOING WHAT WE HAVE
BEEN DOING SO FAR. WE ARE PROCREATING — PROCURING
FROM AROUND THE WORLD. I THINK WE ARE KEYED TO THE U.S.
ECOSYSTEM. WE THINK THAT PLAYS A BIG ROLE
IN HOW TARIFFS ARE TARGETED. GUY:
YOU SIT ON THE BUSINESS COUNCIL IN AMERICA.
YOU SPEAK TO CEO’S THERE. WHAT MESSAGE DID YOU TAKE TO
THEM FROM EUROPE? WHAT IS THE MESSAGE THAT SHOULD
BE GOING TO U.S. BUSINESS AND THE ADMINISTRATION?
>> THERE IS A LOT OF QUESTIONING ABOUT WHERE ALL OF
THIS IS GOING AND WHAT IT WILL MEAN FOR INDUSTRY.
WE ARE IN WAIT-AND-SEE MODE FOR TARIFFS, TO SEE WHO WILL BE
IMPACTED, HOW TO RESPOND TO THE TARIFFS IF ANY.
WE ARE NOT DIRECTLY TARGETED WITH TARIFFS AT THE MOMENT. INDEED, THERE IS A LOT OF
QUESTIONING ON WHAT IS CHANGING AND HOW TO ADAPT.
WE ARE IN A WORLD THAT IS FAST CHANGING.
WE ARE ADAPTING TO THOSE CHANGES. GUY:
THANK YOU FOR ADVISING US AND INVITING US TO THE AIRBUS
HEADQUARTERS IN FRANCE. THAT WRAPS UP THAT CONVERSATION.
“BLOOMBERG TECHNOLOGY” CONTINUES ON THE OTHERS OF THIS
BREAK. WE ARE GOING TO HEAR FROM MARK
GURMAN WITH AN UPDATE ON APPLE. THIS IS BLOOMBERG. ♪ MATT:
APPLE IS EXPLORING THE IDEA OF ADDING CAMERAS AND VISUAL
INTELLIGENCE FEATURES TO THE SMARTWATCH, THRUSTING THE
COMPANY INTO THE AI WEARABLES MARKET.
MARK GURMAN JOINS US WITH MORE. WHAT DO YOU KNOW ABOUT THESE
DEVELOPMENTS? MARK: THANKS FOR HAVING ME.
OVER THE PAST YEAR AND CHANGE, COMPANIES HAVE BEEN TRYING TO
MELD AI WITH HARDWARE. WE HAVE SEEN FAILED ATTEMPTS.
WE HAVE SEEN BIGGER SPLASHES LIKE THE RAY-BAN SMART GLASSES
FROM META. THESE HAVE CAMERAS AND
MICROPHONES. TO REALLY TAKE ADVANTAGE OF THE
AI, YOU NEED TO HAVE A SOLID UNDERSTANDING OF YOUR
SURROUNDING ENVIRONMENT. APPLE WANTS TO BRING CAMERAS TO
ITS WEARABLES. THEY ARE WORKING ON NEW
VERSIONS OF AIRPODS AND BOTH APPLE WATCH MODELS THAT ADD
CAMERAS TO HAVE A BETTER IDEA OF THE OUTSIDE WORLD.
ONE THINK THEY ARE LOOKING AT IS ADDING CAMERAS TO THE APPLE
WATCH. THAT WOULD ENTAIL POINTING YOUR
APPLE WATCH AT SOMETHING AND THAT WILL ENACT THE VISUAL
INTELLIGENCE FEATURE THEY HAVE ADDED. YOU CAN SCAN A POSTER, A PLANT,
ANYTHING, AND IT WILL TELL YOU WHAT IT IS USING CHATGPT OR
GOOGLE SEARCH. THE IDEA IS FOR APPLE TO
CONVERT ITS MODELS TO HAVE THAT CAPABILITY TO DO THAT INSTEAD
OF OPENAI AND GOOGLE. THE BIGGER PICTURE IS ADDING
CAMERAS TO AS MANY DEVICES AS POSSIBLE TO TAP INTO THE
OFFICIAL INTELLIGENCE OFFERINGS. MATT: I USE CHATGPT A LOT.
I TALK TO IT, IT TALKS TO ME. IT IS HELPFUL ON CONVERSATIONS.
WITH SIRI, IT DOES NOT WORK AS WELL.
WHEN ARE THEY GOING TO MAKE REAL ADVANCES WITH THE AI
ASSISTANT? MARK: IT IS GOING TO BE A WHILE.
MY BELIEVE IS THEY ARE NOT GOING TO HAVE ANYTHING
SIGNIFICANTLY NEW OR POWERFUL UNTIL 2027.
WE ARE A FEW YEARS AWAY. THEY ARE SHAKING UP THE
MANAGEMENT OF SIRI. THEY HAVE REMOVED SIRI FROM THE
OVERSIGHT OF THE HEAD OF AI WHICH TELLS YOU PRETTY MUCH
EVERYTHING YOU NEED TO KNOW. THEY HAVE MOVED THAT INTO THE
SOFTWARE ENGINEERING ORGANIZATION.
THEY PUT THE GUY THAT CREATED THE VISION PRO IN CHARGE OF IT.
MATT: ALWAYS GREAT TO TALK WITH YOU.
MARK GURMAN TALKING THROUGH ALL THINGS APPLE.
THAT DOES IT FOR THIS EDITION OF “BLOOMBERG TECHNOLOGY.” CHECK OUT OUR PODCAST. YOU CAN
FIND IT ON THE TERMINAL AS WELL AS ONLINE AT APPLE, SPOTIFY,
AND IHEART. THIS IS BLOOMBERG.