Transcripts For BLOOMBERG Bloomberg 20240704

Plus, well talk the state of electric vehicles as ev maker vinfast goes public via spac. We speak to the ceo about the deal and studio giants offer a new deal to striking writers in hollywood. Well bring you the latest reporting on that matter. But first, we dig into these markets. We look at here in the us, strong Economic Data over in china, a slowing picture, and we try and marry it all together as well as whats happening in the uk. From a macro perspective perspective, the numbers are so strong here in the us. When you look at retail sales rising, more than expected, what does that mean for a Federal Reserve that has to keep on perhaps pushing back against a very Strong Economy . Were off by half a percentage point. The nasdaq gets hit. In fact, all the major benchmarks here in the United States. On the lower side. Interestingly, though, were buying the dip when it comes to bonds. Weve seen, of course, the yields push higher over the last few days. Notable when were thinking about a fed that perhaps still has its pedal to the metal. We dont see that sell off in bond markets. In fact, we see the buying on the two year and across the curve as in fact we seem to hit yields that seem appetizing. 4. 9 to 4. 93. Lets call it on the two year at the moment. But bring you an Economic Perspective across the pond over in the uk, just a day after we were talking about opening offices there, really strong Wage Inflation at 7. 8 , Record Number for wage growth in the uk. That means could we see an outsized 50 basis point move from the bank of england once again . Thats what some of the particular saxo bank are looking at. Were seeing there for the pound up against the us dollar by 5 10 of a percent. Move it on. Look at whats happening in the world of bitcoin because look, even though were seeing actually some more buying in other altcoins at the moment in terms of volumes rising, were just still at that 29,000 level. We cannot break it when it comes to the og that is bitcoin. And i know you want to drill in to really what is the macro picture of today . Whats happening in china . Yeah, the story is concern about chinas economy. The underperformance is in the us listed shares of Chinese Technology companies. Im looking at the ishares china large cap, the nasdaq Golden Dragon china index, both down in the region of 1. 5 . Chinas Central Bank Cut Interest Rates, a key Interest Rate by the most since 2020. There is concern about the consumer and the property market. This is the picture in the moment. We also go to the year to date picture for us. Technology in Public Markets versus china. And theres a reason for this very clear. The nasdaq 100 tech heavy index massively outperforming the hang seng tech, which is the hong kong listed. China tech shares. The story for the nasdaq 100 i giving momentum in investor interest in the tech sector. Year to date, not so much in china. And i say that, carrie, because this week we expect chinas regulators to show their hand on in terms of how they plan to regulate ai in that country. We know about the domestic players. Speaking of those domestic players, lets bring up the calendar for china tech this week. Caroline, talk me through this because its a busy week ahead for earnings out of china. It really is. Weve got already alibaba kind of making us all take a breath last week, seeing them actually outperform. Can that be reiterated . August 16th, we look at tencent thick and fast jd. Com, but also we have the likes of well, of course, baidu, meituan, of course, a key focus of consumer of desire to be purchasing and the ability to spend at this moment when we do see a Chinese Authority thats having to push on the economy, unlike here in the us, where were worrying whether the fed is going to be, of course, raising rates, having to slow down the economy. Were looking at rate cuts in china. Were looking at a macro picture that perhaps could be headwinds for these big Tech Companies. But also though, ed, i think its good that you point out just how far these companies. Yes, theyve underperformed the us, but some of these companies have really added to their market cap since may, for example. This is all about a regulatory overlay. Look, really the way in which we see a changing of the pendulum swing that perhaps well see more support for the tech sector in china. Its always this way in earnings season, no different in china. The expectation is at odds with the backward looking data. So the preview is for tencent and jd both hit the bloomberg terminal this morning. Tencent expected to record fastest pace of Revenue Growth in over a year, fueling hopes that the biggest internet arena in china is rebounding. Jd similar story. Physical goods rebounded last month. Jd is going to be fine. The news overnight and the data doesnt tell us that and its a completely contradictory picture. And i think thats why we want to think about the macro affecting the micro. Lets bring in amy celico albright, Stonebridge Group principal. And weve really sort of discussed it out there a bit, amy, of how oddly and im hearing it from the likes of jp morgan, their view is really we could see big tech outperform the rest of industrials, particularly the Banks Real Estate over in china, because actually the regulatory hurdles are pulling back while macro headwinds are affecting the other sectors. Does that ring true to you . Well, whats ringing true so far is that just how negative the numbers are coming out of beijing . So were due for some some good news, hopefully with the Tech Companies numbers that youre talking about. But lets just talk for a moment about whats just come out overnight. I mean, the latest numbers coming out of china continue to show that high tech manufacturing is down. Overall, exports are down. Consumption is down. Property market sales are down. The government, as you just mentioned, caroline, is reacting by trying to by cutting rates in order to try to stimulate business and consumer lending. But to date, that hasnt happened. Theyve stopped actually tracking youth unemployment rates because those numbers continue to rise. And overall unemployment actually rose a little bit this past month. And so, again, the overall picture is difficult. So we need to see some good numbers coming from the tech sector. Companies. And those numbers need to reinforce that there is potential for those Companies Going into the second half of the year. Amy, here on Bloomberg Technology, we talk about the fed and higher Interest Rates because they discount the present value of future cash flows for the tech sector. Right. Impacting public companies, but also by proxy private companies. Explain to our audience why china cutting Interest Rates would impact chinas Technology Sector or help to support it . Well, chinas Technology Sector, of course, has really been beaten up over the past couple of years because of the Chinese Governments overall rectification campaign. Really looking at the tech sector, not helping it continue to grow, but really overseeing some of the Biggest Companies being taken apart so that the government can control them a little better. However, this year the story is very different. Chinese government looking at the overall Macro Economic picture, recognize that the private sector, the most Innovative Companies in chinas private sector being technology companies, need to have the confidence to continue to grow, to borrow money and continue to invest in the domestic economy so that they can get consumer hours out. Theyre spending using some of those tech platforms and so lowering the rates, what the government did again overnight is meant to really be a signal to Tech Companies and other companies in china to borrow more money to continue to grow. Caroline, this is such a timely conversation because were talking about chinas domestic economy and at the same time, a lot of the news cycle is about its standing in the world and what International Powers are doing vis a vis china. Yeah, were all waiting, of course, for raimondo to go out. Of course, focused on commerce. Weve already had treasury secretary yellen out in china, all amid yet more and more sort of adversarial comments coming from President Biden himself. When it comes to leadership in china. Amy, from that perspective, how do you see the tensions about us or indeed us investors putting money into chinese names . Is this something that they should be reticent of doing at the moment . Well, the Us Government is demonstrating that it does want to restrict some areas of Outbound Investment flows to china. Just last week of course, dropping the long awaited executive order by the Biden Administration in which will which will create a notification system and some restrictions. Again, very narrowly focused even within technology on ai, quantum computing, semiconductor, Us Investment into china, into areas of concern because as the administration sees some Us Investment flows going to help chinas military modernization and it developing its surveillance industry. And so some areas are going to continue to be restricted. However, i do think its important to say that with secretary raimondo on her way after kerry, after yellen, after secretary blinken already visited china, weve invited chinas foreign minister, wang yi, to come to the United States. The two sides are trying to navigate this very difficult relationship. Neither side is willing to say theyre going to let up on Technology Restrictions if they impact national security. Amy, how important a battleground is Artificial Intelligence to china . Oh, its critical. Its absolutely crucial. And so these export export control restrictions, as well as this new Outbound Investment tool to restrict some us flows, are going to be very important for china to look at to see if other countries emulate those Outbound Investment restrictions, specifically in ai, because the Chinese Government doesnt really have the ability yet to be able to domestically produce a lot of the technology, particularly the hardware necessary for many of those ai applications. And so continuing to invite, encourage, supervise these technology in Technology Investment into china is important. So important that the state council just on sunday released new rules that are encouraging Inbound Investment into china in many Technology Sectors. All right. Our thanks to amy celico, principal of dentons global advisors, albright Stonebridge Group, one of the advisors in the china space. Lets stay in the region and think about taiwan. Taiwanese Vice President lai ching dah is seeking to reassure voters that hes a steady set of hands as he campaigns to become the selfgoverned islands next leader. He spoke exclusively to Bloomberg Businessweek in his first interview with International Media to tell us about managing relations with Mainland China and the expansion of chip manufacturer tsmc. Well, he also also with us. We must abide by the truth, which is what i mean by pragmatism. It is that taiwan is already a sovereign, independent country called the republic of china. Its not part of the peoples republic of china. The roc and prc are not subordinate to one another. It is not necessary to declare independence. What is your roadmap to formal independence . You may well. Chenzhuang my responsibility is to maintain the status quo in the Taiwan Strait while protecting taiwan and maintaining democracy, peace and prosperity. So no such framework exists. We must work to maintain the peaceful status quo because taiwan is already a sovereign country. So how confident are you that the us will have taiwans back . Should the situation with china escalate the minguo state, taiwan . The us is a close friend of taiwan. We are partners in a number of areas from politics, the economy, human rights to our society. With taiwan. The and because taiwans security challenges are a global concern for the upkeep of peace and stability in both the Taiwan Strait and the indopacific region, fulfills the common interests of the international community. I believe that all democracies in the world, including the us, would be aware of how to respond, and if such a scenario were to take place, what do you want the world to know about you as a person . Whats the thing . I am a rational and steady leader. I know how we can respond to the challenges we face as a country. I also understand that the serious and complex nature of issues in the Taiwan Strait call for rational and steady leadership. This will enable our country to move forward amid changing geopolitical circumstances as that was indeed taiwanese Vice President. There in a bloomberg exclusive. Now coming up, were going to be joined by tulane vinfast ceo to discuss the electric vehicle makers nasdaq trading debut. Boyd, did it have a pop . Yeah, big focus today on asia tech, actually. Im going to go over to singapore and look at see the tech giants, us adrs dropping the most on record after sales missed estimates. But a really sharp decline, not just in the ecommerce business, but gaming revenue as well, that see limited the singapore tech giant. Its definitely a name weve not spoken about in a while, but my goodness, look at that result. This is Bloomberg Technology. 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Com and get 20 off your first order. Vinfast. Vietnams Largest Electric vehicle maker, saw shares surge in their nasdaq trading debut after merging with spac black spade acquisition. For more, lets bring in li vinfast ceo whos live with us from the nasdaq. An impressive debut after the spac transaction closed. Vinfast had told bloomberg that the purpose of going public via spac was not to raise funds. Madame toy was this just a marketing exercise to get vinfasts name out there . I thank you. We have been working on the us listing for like two years and were very happy that we we made it today. We vinfast has become a publicly listed company in in the us. Its not just a its not a marketing, its just a milestone that we want to achieve as our path to becoming a global company. Madame toy ive covered many electric vehicle makers that have gone public via spac. I wont list them, but not many of them have been successful thus far. Do you need to raise more capital . Are you speaking with sovereign wealth funds as an example . All to raise capital to grow quickly here in the United States . I mean, one thing you should notice that we are very different from a lot of companies that have gone public by way of spac. We already have a line up of vehicles. We have seven models of evs that we have announced to the market. We have manufactured 100,000 vehicles. We we have delivered close to 20,000 evs, mostly in vietnam, but also in the us. And you know, we finished the homologation of our vehicles, the eu. So we are very different from other companies because we a lot more ready when we when we get listed. Madame, to talk about those global ambitions because as you say, youre different from other evs. But what many an ev experiences is during growing is recalls is perhaps the odd critical, unflattering review. And you havent managed to avoid that thus far. How do you navigate that here in the us to rectify by some perhaps the pr hit that you sustain from those poor reviews and recalls actually, if you look at the reviews of the publicity about us, most of them are positive or at least neutral. Right . Lets lets wait and see. There have been some like negative reviews. We we take them very close to our heart. We reflect on the feedback of from from those reviews. And we make our vehicles better. We update the software when we make the vehicles better, we actually really appreciate the feedback from the public, from the consumers, because its a way for us to to become better and it affects your own workforce. Talk to us about the us workforce. You consolidate it, saying goodbye to certain individuals put together north america more broadly. Are you going to expand . Because i know youre going to put manufacturing here. Well, i think vinfast and vingroup will always continue to optimize on our resources and restructuring of north america was just part of the optimization of of the resources. We always try to become better in in the us with the North Carolina plant. We we started expanding. We started hiring people. I think we at the early stage of building the the plant. But as the plant go into getting closer to opening, then we will start bringing in more people. Your founder committed about 2 billion of his own personal capital to vinfast. It will the founder have to put more money in . I just want to go back to this idea of sovereign wealth funds as well. You know, in terms of a capital need, where are your priorities is to raise we we have the commitment from our shareholders of vingroup and our chairman up to to 45 billion. So that will help us continue on our path. We have been talking as part of the traditional ipo. We we were talking with a lot of the investors. And after becoming public today, we will continue the dialog with with a lot of investors sovereign wealth funds but many other institutions investors as well. When the time is right for an for another transaction or for for the transaction to bring in significant funding for vinfast, we will do so. Meanwhile, we we we have very regular conversations with our with potential investors. And im sure theyre eyeing the success of this particular spac listing thus far. We thank you so much, madame twain. Thank you. That is truly the vinfast ceo live from the nasdaq. Meanwhile, coming up, were going to be sticking with all things evs, particularly as tesla looks like its well, new lower range iterations of the model s and model x continue to put the downward pressure on the prices from new york. From san francisco. This is Bloomberg Technology. Has the chicken, not the prawns are delicious. Oh have a shellfish allergy one prawn. Very good. Did i say chicken wrong . 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This week, with seven agencies taking responsibility for oversight. And finally, michael berry, scion asset management, exited its stakes in alibaba and jd. Com in the second quarter. 13 f filings show the firm exited its positions in the chinese tech giants that had been the hedge funds biggest holdings. Caroline isnt that interesting . And as we were just talking about china, about the earnings coming up about well, some of the reticence, whether that pushback against regulation can begin to continue the grind higher in these stocks. Lets talk to sonali basak, whos here to talk about. Well, it wasnt just Michael Barry making moves in tech stocks. Where else did you see some of the movement . Yeah. And importantly, with the 13 fs, when we take a look at these movements, these are from the end of the second quarter. So its been weeks since then. And the reason i say that is because some of the most interesting movement happened among the most high profile hedge funds, particularly in the technology world. So who are they . Chase coleman for example, tiger global. There were a significant amount of sales. They had reduced its tech stakes by more than 5 . You have the same thing at maverick for lee ainslie and if you take a look at what they did in the quarter alone, they sold out of 186 stocks and they added 129. So theres a lot going on over at maverick, but the tech stakes were reduced by about 3. 5 . Now, remember, when you look at the entire industry, when it all global fund managers, hedge funds, sovereign wealth funds, pension funds, tech was increased quite meaningfully and so this is a bit against the grain co two as well. Another tiger cub. When they trimmed their stakes, they trimmed nvidia, meta, tesla, netflix and so some of this could be just profit taking. However, here it is interesting to see some of the biggest tiger funds go into different places. Youre looking at tiger global, for example, and its apollo stake and d1 as well going into Real Estate Investment trusts. So looking for other places as they seek to capitalize on this part of the market. Theres also the acquiring part were talking about michael burry. Scion asset actually ended with expedia as its biggest holding, adding 100,000 shares worth 10. 9 million. Bloomberg sonali basak and all things 13. Thank you. Coming up here on tech, new proposals backed by netflix and disney to the hollywood writers. When will the strike come to an end . Were going to give you some new details next from san francisco. And over in new york, this is Bloomberg Technology. Rise up this morning. Smile with the rise in sun. Three little birds. Pitch by my doorstep singing sweet song of melodies. Pure and true. Saying this is sinus rhythm and blues. Caribbean seal now on visit sandals. Com. 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There are parts of greece which are have reached saturation point and if we have to place restrictions, we will in order to to protect especially islands which are which are more sensitive. Welcome back to Bloomberg Technology. Ed ludlow here in san francisco. Caroline hyde in new york. Lets check in on those markets. Were about halfway through the trading day and some of the strong Economic Data means its good news, means bad news when it comes to the stock market. At the moment, weve got caution out there. Look, its not just caution about retail sales that grow faster than anticipated and what the fed needs to do to just pull back on this us economy, but also china. We see the mood music there. A concern as we see the Economic Data coming in weak, even though we get that extraordinary rate cut in china, not enough to change sentiment at the moment. So im seeing the nasdaq 100 up by 6 10 percent. The gold and dragon, nasdaq, Golden Dragon, some of those big chinese tech names traded here in the us off by 1. 6 , even though we have thickened fast some of their earnings, which remember alibaba looked good last week. Were looking at a ten year yield that just is flat on the day we had seen some buying buying, lets call it after yields pushed higher. At the moment were just steady on the ten year amid what were trying to see, the push and the pull of really where Central Banks go, particularly in the uk as well as wage growth ramps up. Lets have a look at some of the individual names just briefly, i want to shine a light happening with nvidia. Most points added to the nasdaq 100 coming from this particular name up more than 2 as we see well follow Morgan Stanley bullish say its the kingmaker and i am looking at grinder up 12 . It was up more than 20 at one point. Its earnings looking good, raising its full year guidance for the lgbtq app. And im looking at tesla off by 2 . I know you know this more than anyone, but this is all about, of course, prices coming down here in the us. They came down in china. This really does seem to be focusing on volume over profitability for the time being. Yeah, big time. Its not a price cut, but in aggregate its two days of them lowering prices. Its a good spot. Now Hollywood Studios have made a new offer to striking screenwriters as the proposals include sharing of viewer data on streaming and assurances to the screenwriters that i wont replace them. Thats according to bloomberg sources. For more, lets bring in bloombergs entertainment editor, chris palmeri. We have a lot of details about what this august 11th offer was. Chris, just run us through them. Yeah, as you mentioned, these are some big concessions because they were real sticking points that had the whole deal falling apart last may. So Artificial Intelligence, previously the studios werent saying anything definitive. They just wanted to keep meeting to discuss it. Now theyre saying theyre going to put something in writing that says writers will still have jobs. Streaming data. This was a huge thing because in the streaming era, theres no actual data available, like in the nielsen ratings on how well shows are doing or at least not shared publicly or even privately with the writers. So theres some assurances that that will happen. Also, another big deal, this issue called mini rooms, which are smaller groups of writers that meet before a show is picked up. Theres some assurances in the new proposal that theyll have, you know, if not specific number of writers employed, at least some guarantees on the hours that theyre paid for. This is a media story, a labor story, but its really a tech story when youre thinking about the protections around Artificial Intelligence, when youre thinking about, of course, ultimo, how they get the data in terms of how successful their writing is. Chris how does this play out now for actors as well . Well, there are many of the same issues that the writers have that the actors have as well. And indeed, you know, we reported nielsen data from this morning that shows this is the First Time Ever that traditional tv has fallen to less than half of all viewings. So this revolution thats happening with streaming is accelerating. And and the writers and actors have said that the contracts that theyve signed in the past just dont reflect these new technologies. Yes, residuals, chris, are a big part of the compromise. Explain what a residual is and what is on offer to the writers residuals are when a writer gets paid after the first airing of a show. So lets say you write a show for cbs, cbs then sells it and syndication to a Cable Network or a streaming service. And historically, writers and actors, everybody in the business has made a lot of money off those after sales. What happened in the streaming era is that netflix would buy a show and keep it on netflix, and there wasnt all of that money in residuals in the streaming era. So new proposals are for increases in the pay that the actors and writers get for that. He breaks it all down for us. Chris palmeri, we thank you so much for the latest in this ongoing well, lets call it a saga because we want to go even deeper into it with a man who really understands the world of content creation and syndication. Steven wolf ferreira is with us of threepart studios. And weve talked about this a few times with you, steven, and indeed, the changing world of production. From your perspective, was this good news . Do you think that this will end the strike . How important is it to end the strike . Look, thanks again for having me. Any conversations are good because they have not been talking, but the reality is theyre still very far apart. And labor day is almost upon us. Thats typically the kickoff of the fall broadcast season. So if this continues past september and really starts to get into the october time frame, its really going to impact production. Its going to impact all the new series. You know, certainly sports, you know, kind of animation, you know, scripted. All these things are going to be up in the air, obviously unscripted as well as late night. But the truth of the matter is, youre talking about the elephant in the room, which is i and, you know, this whole conversation has really been around three cs. Its been around consent. Its been around compensation. And copyright. And the truth of the matter is, ai is not going to take someones job. Its someone using ai. I see. And so to that end, a lot of the dont want to call it hype, but a lot of the headlines that have been around this worry about Artificial Intelligence. Do you think its right that they should be so concerned around it . I mean, think. Yes, because the truth of the matter is we typically overestimate technology in the short run, but we underestimate it in the long run. And the truth of the matter is, this is not new. I mean, theres always been new technologies coming into hollywood and to every industry, and we have to adapt to it. When you see all of the power of generative ai, how its going to really streamline the pipeline of the production processes as well, the development process, its going to get used. I mean, people are using it today and the truth of the matter is look at where folks are going to when there is no content being done by either the studios or, you know, all the issues with, you know, the guilds, people are going to tiktok, people are going to twitch, you know, theyre going to go to other places, other creators that are going to be making content and think its really important that everyone understands that they have to come together for this industry to be sustainable and for to be economically viable. There was a part of the bloomberg report we did not get to with our editor, chris palmeri, which is, according to our sources, ted sarandos, the netflix coceo, and bob iger have come in very recently and started to weigh in on these negotiations. How much of a signal is that to you that it is getting painful . Well, the halt in production thats taken place as a result of these strikes, i mean, it is painful, but i think you really need to bifurcate the on the studio side, the two different groups there are the technology companies, and then there are the traditional Media Companies. And certainly they both have different interests, but they have to come to the table and look, we really are lacking any true ambassador in the industry. I think bob iger really takes that mantle and hes been doing his efforts to really kind of bring people to the table again. But the truth of the matter is, how do we resolve this . Because it is going to impact the whole industry. The content will continue. Technology continues to innovate. And if folks dont figure out how to make content, how to bring all parties together so that its going to be truly a win win. I mean, when you think about studios, when you think about actors, when you think about writers, they need the data. I mean, this really is a story about data. You know, we actually have a couple of films coming out this fall. We have aristotle and dante. We have a film called radical that won at sundance. We have things happening in Spanish Language tv. So, you know, the truth of the matter is us as a studio, as a production house, we need the data from the streamers so that we can understand our audience, understand whats working, whats not working. And so any type of concession where its truly going to be a win for the strikers. But as well as for the studios, we have to bring everyone together because if not, people will go to different places. The audience is always going to seek out entertainment wherever its going to be viable. You mentioned some key words there streaming content. Caroline made this point earlier that its a technology story, but there are essentially two Different Industries here. Theres the Legacy Production and entertainment industry. Then theres the tech players. So how does it end differently for both . Well, i mean, if were really being blunt about it, you know, the truth of the matter is the technology companies, this is almost like a side hustle for them, right . I mean, you know, whether apple is going to figure out what to do with, you know, kind of their content, they also have their core business, which is, you know, making hardware, making software and making services. You know, same thing. You could argue for a lot of the other Tech Companies like amazon. But when it comes to the traditional Media Companies, i feel like they really are trying to figure out how to make this leap. Certainly, analysts have been talking about it and you see all of wall street really starting to punish, you know, the Media Companies because they havent figured this out. So i feel like its in everyones best interest to get to the table, really start to share the data. I dont understand why we cannot have transparency and understanding the audience. Its good for the streamers. Its good for the writers, its good for the actors. And in this day and age, they need to understand their audience. Steven wolf pereira, three pars studios always on the news, but always pretty straight, talking about it as well. Thanks for your time. Turning to another story were following in the space, by the way, content streaming, cable and traditional broadcast channels all fell below half of all viewing for the first time in july. Thats according to market researcher nielsen. The data shows that streaming hit a new high last month as broadcast fell to 20 of all viewing cable to just 39. 6 of all viewing. And then the streamers, led by youtube, netflix and hulu, accounting for 38. 7 . The rest video on demand. Caroline. Fascinating. Its all about the data at the end of the day, isnt it . Its also about data and diversity. We want to talk about that in the landscape. Marshall butcher is going to be joining us, founder and general partner at day one venture. How shes prioritized. Well, diversity in her portfolio companies. Then we want to just look at also this ai focus. Were going to end the conversation and really bring in how youre dealing with it, perhaps with kids going back to school, to the classroom. How are teachers dealing with it . Weve got Artificial Intelligence from both value and challenge for educators, a power schools. This is bloomberg. I wanted to be proactive because i was terrified of losing my hair. Nutrafol is a more natural approach. Nutrafol is the number one dermatologist recommended hair growth supplement. Now i have this amazing head of hair that started at nutrafol dot com slash man. Its not just designed to look good, its built to command attention. Its not just a comfortable interior. Its a quiet refuge. Theyre not just headlights. They light the way forward. The new fully electric audi q8 etron models. 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Diverse entrepreneurs in particular, whether women or people of color, seems now to be a good time to be investing in them. According to marcia booker, founder and general partner at d1 ventures. Joining us now from zurich and marcia, im going to ask you to put your money where your mouth is because the money you do have assets under management, 100 million. Youve got a couple of funds who have you backed that really, you feel is the pin up thus far in terms of diverse founders making great change in the world of technology . Where have you written the checks . Well, were proud to say that compared to many vc funds thats operating right now, we have positive irr over 40 and 62 of the fund. Two money came into diverse founders is the founders of color or female founders and we do back different companies. We backed a number of companies in Enterprise Software space, climate creator, economy and fintech. Whats interesting is theres theres the fear and the optimism. Weigh it for us. Many were worried in this economic environment where people start to claw back, dont want to be writing checks in such an environment where valuations fall. People were worried that they just return to tried and tested founders who quite often are white men, whereas on the other side, theres this view that founders who are diverse havent had the luxury of big family and friends rounds and are basically able to spend and and think more wisely. Which do you fall on . How are you seeing this play out . Well, i think i really want to back founders. That has capacity, talent and grit to come through hard times and think tank like that are right now. I think founders from diverse backgrounds has better capacity to go through hard times and optimizing Company Growth to the economic environment. And the numbers that we have is something thats been proving it. So i think its really about like character and times of the people you backed. We always thought we always focused on we always focused on the founders that could, on the one hand, be extremely smart, knowledgeable about the topic. On the same time, resilient and down times, go back number of entrepreneurs back to dozens of female founders and think some of the founders like that as yvonne thats thriving right now. For example in our new fund few founders that managed to Bring Company over break even female founders that didnt Start Companies before but succeeding right now. Marcia, youre joining us from europe. What opportunities do you see in European Tech . Well, we invest around like 85, 90 of capital in United States. I do think, though, there is a there are a lot of really successful european founders with very strong, very strong technical background. I think, for example, one founder of alibaba from worldcom that you had on your show, he comes from max planck and caltech, and hes from germany. We also backed founder of remote. Com who is also in europe. And i think strong technical engineering background is something thats always been differentiate in european powers. You mentioned very briefly, i what opportunities are you looking for specifically in ai and how are you kind of seeing valuations in the space . Ive been investing in since 2016 when i saved some of the money that ive had from my Second Company and start became an investor. Actually, my first Angel Investment was an ai. So since then i invested in 35 companies. Ive been investing lots of in downtime, not enough time right now. So in a very, very modest, very reasonable valuations, i think out of 35, 35 companies in our space that we backed, we backed around 95 of them before the boom. So right now, leveraging the time when valuations are really up. But at the same time, weve been early in this companies i think generative space is extremely exciting. There are like number of exciting Companies Like xircom on the same time, the applications in ai that we look at really mostly related to either robotics or intersection of ai and biotech think thats where new innovation going to be at. And we dont look at generative space just because its so crowded and so competitive. And we also made a number of our bets in the last three, four years. All right, marsha bois, de one venture founder and general partner, joining us there from zurich. Thank you very much. Now, lots of you out there heading back to school, whether youre on the east coast, the west coast or europe, after a pretty nice summer, the word of mouth popularity of large language models, were just talking about them like chatgpt has set the academic world ablaze after it was introduced in november last year. But as students head back to school, some educators are attempting to incorporate Artificial Intelligence into the classroom. Powerschool is the leading provider of Cloud Based Software for k through 12 education. That means Young Children here in the United States recently announced as well that microsofts Azure Openai Services are going to be integrated into its teaching tools and will be available to pilot this fall. Joining us now, powerschool ceo hardeep gulati. Theres an academic debate in and of itself about whether i should already make its way into the classroom. Just state for us, yours and power schools position on that. Sure. Thanks, caroline, for having me on the show. Youre absolutely right. This is a Pivotal Moment in education in terms of really embracing the generative technology. I think one thing you will every resoundingly believe in from every educator, from every teacher, from every family, is that we need to make sure that we can personalize education for every child based on where their focus areas are and how we support. Think the one size fit all has been a challenge to really be able to address some of the learning gaps and gauging every students address, the equity issues and generally actually gives us an opportunity to really personalize education at scale. One of the challenges teachers face is incorporating personalized instruction and personalized assignment. It takes many hours for them to do that in a class. When you have 25, 30 kids or multiple sections, what we are incorporating with collaboration with microsoft openai is really bringing the personalize lesson planning, personalized assignments in the hands of the teachers. So now that saves them hours of time, addresses the teacher burnout and have a personalized education for every child. Whats interesting, hardeep, of course, is while youve been thinking of this integration, youve also been thinking about some of the concerns surrounding ai not only, of course, is that suddenly well, kids can perhaps fake some of their writing, but that aside, we know that theres tools to see when theyre being truthful. But im interested in some of the cyber issues making attacks more likely, more prevalent. How are you seeing that as an area of your focus . Sure. Cowling thats a great point. As you remember, we actually are our Technology Provider for 80 of the north American School districts. So about 15,000 school districts, 90 of the top 100. One of the things, as you can imagine, we get the front row seats on both in terms of the ethical use of ai as well as the privacy and technology and security protection. I recently was actually last week in white house Cyber Security summit for k12, and we shared that just on the power School Solutions with serving all these districts. We successfully defended our districts against 1 billion cyber attack events by leveraging modern cloud based technology, by investing in the cyber secure elements, we are able to really support these districts because they already have dozens, if not hundreds of Technology Infrastructure for many legacy, many manual points. All those things actually create challenges and vulnerability. Which districts dont have the resources. So we are providing even subsidized and Free Security as a service so we can support districts in adopting the technology more easily, modernizing their infrastructure and being able to support and empower every teacher and student and its interesting, isnt it . Ive spoken before at sort of charitable events with teachers who are concerned a lot of the time teachers, tech teachers, about how a lot of their students know more than they do. This is also about increasing literacy across the board, about Artificial Intelligence in and of itself, right . Ed . Yes, simple question. Hadi, should i or at least Computer Science be a bigger focus on curriculum is worldwide . Apsar in fact, we joined the code. Org movement because not only we are enabling ai to be within the particle technology, but were also making sure that we can actually incorporate that into the Teacher Professional Learning solutions as well. We actually serve half the Us School Districts in teacher recruitment, substitute teacher as well as Teacher Professional Learning solutions. So were incorporating all that into the teachers tool itself. Another exciting stuff is some of the work we are doing with states like alabama and montana. Were actually giving them a k through 20 view using our data platforms to actually allow them to understand what are the Career Pathways and how you actually bring that into the k through 12 itself. So you can actually better support the economy. So we again have a opportunity to actually support these districts and modernize their curriculum. But the key element i think both of you are hitting is the context. What we want to make sure is that is not replacing the teacher. Its actually augmenting the teacher, its supporting their workload. Its helping them with the burnout issues and also its in the context of how were actually teaching today. Hadi great to have some time with you. Hardeep gulati, ceo of powerschool. This is Bloomberg Technology. If you have employees, you need to check out the program. Chef wonderful y mr. Wonderful because its cash flow that you dont have to pay back. Good to know this guy is so smart and so handsome. Go to wonder trust. Com to see if youre eligible you automate sales tax with avalara you dont have to worry about things like changing tax rates or filing returns. Have a of i. I. I spill splashed boil overs and burns. 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Interesting one out this hour, google expanding its generative tool to select sites not just its own search engine, actually allowing you and me to experiment with the new features that display content created by ai. All of this, of course, is microsoft seems to be perhaps looking at targeting search. Yeah, there are limitations like paywalls, for example. But remember what they said at google io slow and deliberate rollout this goes beyond search now to third parties. One to watch. Meanwhile that does it for this edition of Bloomberg Technology recap podcast. Apple spotify. Iheart this is Bloomberg Technology. See. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. 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