Transcripts For BLOOMBERG Bloomberg Technology 20240714 : vi

BLOOMBERG Bloomberg Technology July 14, 2024

How it treats its warehouse employees. Twitter under the sun. Feels about not getting an invite to the president s meeting. Remarks fromng President Trump, who is expected his efforts to add a Citizenship Question to the senses. Administration bills the summit as a gathering to bring together Digital Leaders for a robust conversation. Various conservative lawmakers, organization leaders, and internet personalities were on the list of attendees. Many of them echo President Trumps complaints that social media silences conservative voices. What do we know about what happened behind closed doors . He did make some comments afterward and said you are journalists, influencers. The gives you a sense of who these people are. Of president orters trump or who he sees as allies. It is a little bit tough to imagine there was much progress made in fixing social medias biggest problems. I imagine it was a lot of talking about similar complaints that they might all have. The president was on a roll this morning, tweeting about this ahead of the summit. He asked, what ive become president without social media . Yes, probably. Today will be dishonesty and these companies. We will not let them get away with it much longer. There is this whole conversation that we have been having for a couple of years. These platforms are biased against conservative viewpoints. We had congressional hearings about that. Aboutent trump has talked a lot. He has called out facebook and twitter. Definitely the believe going into this. The question is, will anything get accomplished as a result of this . Has said that the u. S. Government should sue google and facebook for unspecified reasons. Dont imagine anything well. It is hard what would come out of it had they even been there. The fact that the companies werent there, they have been hearing these complaints. They have been on social media for a long time. We keep talking about them. It is not like they are unaware of these ideas. It is hard to imagine anything changing. Emily during this meeting, twitter went down. The ironing. Any idea if it was related . Kurt twitter did not say it was related. They said it was a technical glitch. The ceo tweeted that he is important proud of the engineering team. My twitter was down. But it now seems to be working. Speak to the cfo. We will talk to him later in the hour. He did not have much detail to at. What is the company said in general about not being invited . Kurt they have not said anything for the record. The idea that they are not invited us a little bit all of the, because complaints are about them. If they are not in the room, it is hard to expect facebook or twitter to do anything differently. I feel these accusations of bias and conservative bashing, we have yet to really see any hard evidence that that is the case. There are individuals who like to complain about it. Fox news has a lot to very popular facebook posts. The word gets out. Emily at this press conference after the summit, the president said he is inviting or summoning the companies to the white house and the next week or two. How thea sense of companies having gauged thus far with this particular administration. Jack dorsey recently met with President Trump. They have showed up in washington a lot. A lot of tech founders showed up after his election where they did this awkward meeting. As if people are unwilling to have a conversation. The issue is when they show up, it become some kind of bashing session. Lately with facebook, we have seen that to be the case, where they come to these hearings in their routinely accused of conservative bias or being too big. Im not sure how eager they are to show up if nothing actually happens. There are potential pending ethics investigations against facebook and google. Is there some grand plan here . Kurt it is related to facebooks power. About how muchl power they have and the influence they have. Does facebook have the power to leave up or take down certain opinions and thoughts . Back to thecomes idea that facebook is too big for its own good. We will be watching to see what happens in the next couple weeks. Now to a story we continue to watch. The white house will investigate a french plan to impose taxes on Global Technology companies. The move is a prelude to what could be new u. S. Tariffs under the Trump Administration. Tech giants like amazon and various trade groups are supporting the move. It is fascinating that the president has assailed these fornology companies anticonservative bias and yet at the same time the u. S. Is going to that for them, announcing they will investigate a plan by france to tax Tech Companies, which are mostly global u. S. Technology companies. What is the strategy here . Is really part of a wider push by the Trump Administration to level the Playing Field for u. S. Companies. It does affect facebook, google, amazon. Pretty big players see you think andd fend for themselves appeal for their own interests. In this case, the Trump Administration sees this is something they do not want happening. They are using this investigation power that they use to slap tariffs on china. In the end, they have not been the biggest proponents of it. Emily the senate in france passed a bill to impose a 3 tax on Global Technology companies. Asked the in the past u. S. To work in a fair digital tax. Give us the contacts. Sarah france will be the same in the European Union to pass additional taxes. But it is not the only one that is trying. The u. K. Is, the czech republic. It is definitely a Movement Toward this. What it stems from is these companies see that a company can be based in the u. S. And pay corporate taxes here but there are actually gaining revenue from countries all over the world. They want a piece of that. For a company, it sees it has double taxation. There is a big push to get a global agreement on this. Out things and it is not just a patchwork of separate digital taxes all of the world. There will bee, legal challenges in france, whether it is through the eu are the local courts. The u. S. Isas preparing to negotiate a new and limited trade agreement with france. How likely is it that this will lead to new tariffs . Sarah france is part of the European Union. As a customs union, they face uniform taxes. It is hard to imagine. No one can really spell out the case of the Trump Administration tries to slap a terrible on france how that will be implemented. No one has ruled that out. Another strategy that people the trumpd about is administration could put a tax on eu goods but it targets french exports like wine. This is just the start of the investigation. We do not know what the outcome will be or what the recommendations are. What we do know is trump has the final say in these kinds of investigations. He has unilateral authority. Emily what do you make of the fact that at the same time the u. S. Is trying to protect these companies abroad, the president himself is attacking these companies here at home . Looming potential antitrust investigations against text companies. Complaints against anticonservative bias. The president saying the u. S. Government should sue google and facebook. A lot of the trade policy does leave us perplexed. Divorced from the principles that the Trump Administration stands for. Another area is national security. A nationalawei is Security Threat and crackdown on it. Hand, theyre taking actions. On the other, they have alter your concerns. It is hard to imagine what the next play is. I think this digital tax took everyone by surprise. We dont know if Tech Companies were given that much morning. This was something that took everybody by surprise in the morning on wednesday. We are continuing to follow the developments from the social media summit at the white house. Thank you for your update. Muskg up, changing how talks tesla. Change how held talks about the company in public. If you like bloomberg news, check us out on the radio, listen on the app, or in sirius xm. Emily teslas largest shareholder is advocating for elon musk to refine his approach to the public. We have to pour his thoughts. I know i have no foresight. I think that is what we are looking for on a structural level. The last thing we want to do, and i would be resilient about this, is to in any way cramp the great gifts and extraordinary achievements that elon musk has. Are ways of communicating with the outside world and the markets that are more fruitful. I think we do see ways we can work toward that. I hope he is not opposed to that. With that mean a social media blackout . I dont think it needs to be a blackout. Should avoid reversals of policy. I hope that is not too much for a major shareholder to ask. Emily i want to bring in our reporter. How big is it for the outside shareholder to criticize elon musk . He has done this three times now in a year. You heard him reference in his conference a year ago, he used the phrase peace and execution as something he would like to see out of tesla. This was just after elon had made headlines for calling the cave diver in thailand a pedophile. And going after analysts on an earnings call. To his credit, tesla managed that. They had a great second half of last year. They got the model three going. But they did not have peace. It was just a few weeks later that he tweeted that he was considering taking the company private. Unpacking what he said yesterday, he talked about setting these potential unrealistic targets. And setting precise deadlines for them. He very much has done that. He talked about the idea that there will be one million self driving teslas on the road by next year. He has had the sudden shifts and approaches to policy at tesla. Most notably the retail approach. He suddenly set we are going to close on most all of our stores. Within 10 days, he reversed course. He really unsettled a lot of people in the process. That attempt to close the vast majority of the stores did not work. Also notd he has oversarily one over won people to the fact that teslas consolation and the prices of their cars, reworking how their packaging autopilot. Of histicked off some true believers by making some of the sudden changes. For a majorl shareholder to openly talk in this way. But i think in this case, as you heard, he is very evenhanded of praising the brilliance of elon politely asking if he can stand around the edges a little bit. Emily lets talk about the execution part. Gettinge is tesla to its goals on production and delivery so far this year . Craig we got our hands on a memo earlier this week. It was an eu mouth on the automotive president of the company talking about expanding production at fremont, where they are making their cars. On the model three side, they are doing extremely well. I think they cut a lot of people off guard. Under the radar, there is some concern on the part of the analysts and investors that the s and x are not doing so well. You have seen him on twitter come out and say an updated is not in the offing. There have been rumors and maybeon of mayberry there is a redesign for those models that have been out for years. They discussed a merry and the Auto Industry to see a refresher or a nose job on a car. There have been concerns about may be the model three, because it is cheaper, has been cannibalizing demand for those higher market vehicles. Until it elon is able to have a little bit of both and be more balanced in that regard, there is some concern over whether they will execute from a profitability perspective. Emily his plan to raise more money . We saw them go to the markets to go to an equity and debt deal with in the last couple of months. That may be puts that need off for the time being. Ofre is a real open question , despite the fact that they just had a Second Quarter where they broke their deliveries record, whether or not they were able to do that at the expense of profit. The idea ofd getting back to profitability. They rolled out that they were able to do that in the Second Quarter. There are some questions as to whether they are able to pull that off, especially as the incentives in the u. S. Continue to taper off at the federal level. It is now less than 2000 that a when you buy aor tesla. That will make things all the more difficult when a year ago 7,500alking about a federal tax credit. Emily thank you. Coming up, shares of tmobile and sprint were under pressure thursday. We will tell you why. And we are Live Streaming on twitter. Be sure to follow our Global News Network tictoc. Emily ai programs have been beating human poker players for years. Facebook may have invented the ultimate card shark. It beat five pro players and a Texas Hold Em tournament. After 10,000 hands, the ai averaged 1000 in winnings per hour. That was called a decisive margin of victory. Talks over a merger with tmobile have slowed. Anotherl will push past deadline, july 29, before closing. This wouldnt be the second extension to the deal more than a year ago. The switch is now more affordable. Nintendo has launched a cheaper model of its handheld gaming console. It will cost 100 less than the original. Coming up, moving up the cup corporate ladder. Amazon is spending money to reach rain its workers. And a reminder, we are continuing to remark wait for whorks from President Trump will adjust his controversial effort to at a Citizenship Question to the u. S. Census. Youre looking at a shot of the rose garden there. We will bring you those remarks as we get them. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Emily this is Bloomberg Technology. Im emily chang in san francisco. Amazon has announced it will spend 700 million to retrain about one third of its u. S. Workforce. The goal to give 100,000 workers skills needed to thrive economy. W amazon says this will allow workers to move into more highly skilled jobs in the company or elsewhere. Reers joining us as our senior tech editor brad stone and josh adelson. Josh, tell us how the new program will work. Reporter amazon is pitching this as one of the largest workforce investments of this kind that any company has made. They say it will help people who are in jobs like warehouse jobs get into better, more appealing jobs. They say it will help workers who want to get better jobs outside of amazon eventually get training, get schooling, move onto something. Clearly, its about some combination of making those less appealing amazon jobs more appealing as well as helping people move into potentially more appealing ones. Emily so youre saying if you are packing boxes and warehouse, you could potentially become a Software Engineer . Reporter amazon said they will provide a whole range of training including helping people move into jobs involving hot areas like software. Emily i assume its no quincy didnt this is happening at a time when amazon coincidence this is happening at a time when amazon is under fire for how it treats workers. There is a practical reason for this and also a preventative reason. The practical reason is it is a highly competitive worker market. There are 6 million unemployed americans and 7. 4 million job openings. That point in their press release today. They are competing with walmart and everyone else. It is a practical reason. The preventative reason is amazon is under fire today, but one day when it is the largest employer in the country, hypothetically, think about how much fire it will be under. For that day, they want to make sure they are not seen as an authoritarian, ruthless employer. Emily as you said, this is not a new issue. Why now . Why is amazon suddenly caring . Reporter it is that they are beginning to get pressure from politicians, scrutiny from d. C. Europe. It is Bernie Sanders today, but tomorrow, it could be both ends of the political spectrum. It is their growth. They are growing 20 topline per year. About one million employees throughout the world if you count temporary workers. Walmart, about 2 million. You can see a day when amazon becomes the largest employer in the world, and that will have pressure. Emily on one hand, we talk about the lack of workers to fill technical roles. On the other hand, theres an explosion of warehouse jobs, given what amazon and walmart are doing, and a decline in traditional retail jobs. What are the dynamics happening at the ground levels that has led amazon to do this . Reporter by some measures, it is the tightest labor market in half a century. You have companies complaining theres a shortage of the types of workers they want. Of course, some management and economics experts would respond, are you offering enough money . Emily exactly. Do they want the workers to accept eight dollars an hour . What workers do they want . Reporter part of the question Management Experts have pointed out is how much of the work do you expect people to do . Do you expect them to walk in being able to do this . Theres a difference saying you need to walk in the not and the door and no one hundred percent of what you will do versus 60 . Here we see amazon recognizing they will get people at the rate that they want, at they need to do training. The other thing going on is you see waves of worker activism like places like walmart, mcdonalds, like uber. We reported they will be a strike on prime day at a minnesota. N that is a place where it has become an epicenter of activism among Amazon Warehouse workers. That is not unrelated to the political scrutiny on the company and labor market conditions

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