State of ai and the regulation with the cochair of the government ai review. All of that and more coming up. We will check on the markets, macro dictated. Flipping between gains and losses. Seems to be being moved by this market, the bond market, yields backup for basis points. Look for the decadelong highs, 4. 5 seven on the 10 year at the moment, about 5 on a twoyear, worried about the direction of travel for the Federal Reserve and a potential Government Shutdown in the red states. Interesting that we see the dollar pushing higher. We expect the fed to have to push back on where some of the inflation pressures have been. The dollar index for the sixth straight day, the longest winning streak. In the face of a stronger dollar, bitcoin higher,. 5 . About of buying in your trading. To get back to the micro today. Ed there are themes, weighing out in the new cycle markets as well. Theyre shuttering the unit of their business that does augmented reality, 170 jobs going with the jobs being cut as well. The question about the longterm commitment. Later we will talk to Bloomberg Intelligence analysts about that. Peloton down. 9 , tom, the last remaining founder of peloton leaving the company. He was the last domino to fall and he is left but what were maine as an advisor. The stock for most of the trading is still down. Meda connect is the annual develop its conference. We know the next generation will be a topic of conversation. We are treading water, the parent of facebook up 1 . 1 . How much focus will be on the latest generation of hardware, these are questions we have to ask. Caroline and questions we have been asking day in and day out. Last week i got to sit down with the head of Global Affairs to discuss how a company is utilizing generative ai. We are announcing on the 27th, new applications of the airline, you will be will commute hit with his mrs. , and the messages are really extraordinary. It will affect all of us are consumed. Caroline a Senior Analyst is with us, the head of the allimportant meda connect. How much do you want to be hearing about generative ai, checkbox and the desire of the Younger Generation to remain committed to instagram, meta and other offerings . Ai is front and center for every company. Google amazon. The majority of the topics weve been having with our investors, that is what investors want to hear. They dont love the hardware side of those so they would like to hear more about this than in the quest and the hardware side, which most investors are skeptical about a more expensive endeavor, highermargin building, we want to hear more on that. Merck zuckerberg did a story yesterday as instagram about jarvis. In 2016 he showed this ai bought at his house that could turn on the lights and do things like make us toast at home. I was in 2016 and he reposted that. We believe this concept of jarvis for the home comes to the mass in ai. Using microsoft and google, also there is an opportunity with Whatsapp Messenger and the global pop Global Platforms that can help us find the right goods, hope surface ideas, salon photos and other ideas to their friends. This is going to be the most exciting part of it. The sideshow will be meda and the price point. It is below that of the proactive 500. Differentiation of what is going to happen in next generation. Ed meta is building large when which models, have emphasis on opensource when developing technology and it has hinted at how that translates to generative ai tools and existing properties. We are focusing on ai agents. You see a clear path to them ever making any money from the things they are working on on the r d side . They have been very clear they are not making money now or dont believe this will be a big Revenue Initiative the short term. Longterm we do believe they can make money and they are a consumer focused company, not as much enterprise. This is going to take some time to figure this out. But we think given the quality of the feedback from the channel about how they are using this, the open Source Community living what theyre doing, there is no doubt there is an opportunity to monetize. This is in the numbers and an evaluation today. 2, 3, 4 years ago we could have this discussion around is this going to be material revenue where they could potentially license this model to companies to use and they would have a royalty for. The answer is yes. What the details look like, theyre trying to iron those out. Those are not in our model but we believe they can monetize it going forward. Ed buckley, it sounds like you are not that excited about augmented and virtual reality. Is that fair . That is fair. We are not. Ed it is either eight metaverse story or it is in ai story. Do you see a world in which meda can convince investors that we can have both echo i think we can have both, but the less they have talked about the metaverse, the higher the stock has gone. From an investor perspective, if they keep talking about the Software World and what is going on with the social Network Inside is great. This is an advertising driven story. The majority is driven by advertising. The jury is out whether the metaverse will be exciting were not. People are saying it is not going to be as exciting. And ai, there are realworld productivity measures we can see and how it is impacting our lives. Putting the headset on, being claustrophobic and playing a game with my kids for 10 minutes is not going to change my life. Right now, we are probably the biggest bear on the metaverse. We are very bullish about what they can do with the other side of their franchise. We are very clear about what we like and dont like. Caroline many executives are trying to see what analysts and investors like yourself like. A guest earlier in the week was talking but how generative ai is becoming such a focus. On the flipside is the regulatory environment. Amazon, meta, all of them have heard from investors. What are you making from this landscape . How do you expect this to unfold for amazon for example . The government has been trying to tackle big tech for a long time and we have said that the government oversight is the right thing to help protect all of us as consumers. But being big is not founded. Being bad is bad. As long as they find a middle ground, we have said this repeatedly. Anytime a regulatory scare comes in, you the stocks. Look at meta, google, amazon over the course of the last five years. Any regulatory scare, these need to be bought. Clearly there has been multiple attempts for the government to take down tech. It has not happened. Investors make money. I am all for regulation and doing the right thing to protect all of us. But what has happened is they have overstepped their boundaries and on after things that they dont necessarily have good food and putting or are educated on and that has caused problems. These are economies that have an end goal and i think they can meet in the middle. We have said this repeatedly. Like any regulatory scare on the internet, it has not done anything to be stocks. Pulp the chart at google the last five years and you can see it is amazing into the right chart. Respect it, believe in it, dont believe they are going to have a massive consequence. Ed when you outline the 10 minutes with the headset playing with your kids, there were parents in the San Francisco studio team that that tickled them. Probably share that view. Brent hill, thank you. Sticking with devices, amazon has lured away long Time Microsoft executive to head the devices and services business. After the devices chief announced his plans to retire, he was most recently the chief product officer at microsoft, overseeing windows and the hardware teams. Dave to head up lou origin. Caroline lots of revolving doors. Coming up, more on the lawsuit against amazon and what it means for big tech and antitrust. We will be joined by policy director and former ftc attorney, charlotte. And we will hear from the ftc chair on the complaint. She sat down with bloomberg yesterday. These are tactics, ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the skill and momentum needed to effectively compete online. Having achieved and protected its monopoly power, the details of how amazon is now exploiting that monopoly in ways that harm customers. Ed ftc chair lena con is seeking to end what she calls amazons illegal conduct, but did not go as far as to call for a breakup of amazon. We sat down with her at our Bloomberg Office in washington, d. C. This is the conversation. This is a case about unlawful tactics amazon has used to maintain anomalies. We note in the complaint, both a set of antidiscounting tactics that amazon uses to punish any seller or retailer that dares to discount and ultimately these sets of tactics deter sellers and retailers from lowering prices and closes off an entire dimension of price competition. The other side of tactics we note is a course of scheme amazon uses to effectively require sellers use the moment service. This ends up stunting the development of independent fulfillment providers and also deprives actual and potential rivals to scale. That is the core theme. These are a set of tactics but ultimately amazon has pursued them to deprive actual and potential competitors of the ability to gain the scale and momentum needed to effectively compete online. Having achieved and protected its monopoly power, our complaint details how they are exploiting that power in ways that harm customers, both the sellers, the American Families that use amazon to do their shopping, both those shoppers and they sellers. The tens of thousands of sellers that use amazon to access those shoppers. It is done that through actively raising prices. Amazon takes close to one out of every two dollars from sellers that use its platform. It is also degraded its service adding a set of pay to play ads that make it more difficult for consumers to find what theyre looking for and steers them to higher price products. I encourage everybody to read the complaint and it details all of this conduct in great detail. We look looking forward to moving forward with it. One thing in the complaint is this phrase structural relief. You are seeking structural relief in this case, which implies a breakup. What would that look like . At this stage the plaintiffs focus on the issue of liability. We lay out a scheme that we believe violates the u. S. Antitrust laws. What we note in the complaint is that these different aspects of amazons scheme have an aggregated effect. The harm is accumulating, there are feedback loops and the net exclusionary effect of amazons conduct is significant. Ultimately we will want to make sure that any remedy is halting the illegal conduct, preventing a recurrence and ensuring that amazon is not able to profit and benefit from its illegal behavior. Right now we are focused on the question of liability. But women get to the issue of remedy, those will be the principles we are focused on. Caroline the ftc chair there. Amazon has responded to the lawsuit, with the Global Council of the company writing that if the ftc were to be successful, the result would be anticompetitive and anticonsumer. Lets get into this with charlotte, director of policy Public Knowledge and you previously worked in the Anticompetitive Practices Division of the ftc, investigating, litigating and if you were there now, how much confidence would you have that this would be a routable action . Charlotte there are reasons the antitrust people at the ftc try not to answer these. It is hard to say at this early stage. But they feel confident. I watched the interview yesterday. It is so important to highlight this problem for people. It seems clear, even though amazon has built their reputation on having the best prices, but that did not come from being an efficient competitor. It came from pushing those thirdparty sellers to raise prices everywhere else. That is not fair competition and if that is what is going on, it needs to stop. Caroline what is interesting is investor and analyst reaction to all this. One particular analyst saying this is a benign scenario for amazon and they were surprised the narrowness of the overall case, saying there is not sort of a reference to disallowing vertical integration. Do you think the outcome should be some sort of breakup or has it got to be Something Else . Charlotte i think of stopping the conduct is not going to be sufficient. This has been going on for a long time and replacing the competition that has been lost is really difficult. Step one is going to be to stop the conduct. But more will be needed. And i heard the chair yesterday to marrying that demurring that this would be far the future, the remedy stages later and separate. But it may be that separating off the fulfilled by amazon part of the business is the only way to address the lost competition, in which case the court would have to take that seriously. Ed some news in the last hour, the ftc has issued an order saying it will continue its internal case against activision and microsofts deal, but when it closes they can after the fact try to unwind it. This is what activision had to say in response. We are focused on working with microsoft toward closing. How the ftc uses limited taxpayer dollars is its decision. Given your cv, what is your response . Charlotte they are drawing on a point that the ftc has limited resources. There are so many important cases that we want them to bring with limited resources. But this case against microsoft and activision is an important case. They think that that has an opportunity to help consumers as i believe it would. It might be an important priority to spend those limited resources. But they are right, we need to increase funding for these agencies so that they can take on all of these important cases. Ed is she picking too many fights . Charlotte no. We need to pick these fights. And she spoke about the deterrence strategy, which can make this more efficient use of resources. If businesses out there can see this is not going to be an opportunity for you to try something risky because there is a fierce enforcer here, that can be a way of saving resources. That is part of the strategy and back and work overtime. Ed charlotte slaiman, thank you. This is bloomberg technology. That first time you take a step back. I made that. With your very own online store. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Caroline time for work shifting. We look at the changing landscape in the labor market, the big breakthrough overnight for hollywood. The Writers Guild of america approved a new contract with the studios, ending the strike after months of intense negotiations. One of the biggest wins in the deal is some assurance that Artificial Intelligence wont replace the jobs. Here with more details, and before we move to what is next to occur, ai, however they how have they won any production . The got what they wanted. The studios a greater they are not going to feed a bunch of scripts into the ai machine and come back and credit a movie to nai. Humans are still going to get the credit and that is what was really important. Studios didnt retain the right to experiment a little with ai. It remains to be seen a little how this is going to play out. Over the time being the writers are declaring victory. Caroline and to actors, they particularly were worried about ai replacing them. Is this an issue of . Yeah. Had somewhere concerns and now there is a template for these protections. I think there is optimism to believe that the writers having made this pact, now the actors will make some Real Progress quickly. Ed some of the numbers are incredible. The lost of the economy based on the strike. The whole point is the cost of content is getting higher. Do studios feel good about this outcome . Their reaction has been notably more muted than the raiders. The writers have been exuberant, declaring victory. The studios gave up a lot, or than they thought they would have to fight months ago in terms of compensation, minimum staffing on shows and in terms of the ai protections. Ed the other thing you are writing about is locklin murdoch. What is next . He made the announcement he is stepping back as chairman of the companies, talking to all of the murdoch people about what this means. Very unclear. What does this mean . A lot of unanswered questions. Clearly it was framed as another vote of confidence by rupert in his chosen successor, locklin, his eldest son. The same time, issues of what is going to happen down the road remain fairly unresolved. They tried to recombine fox and News Corporation earlier this year. Investors balked at that idea. So what comes next, they have been pretty quiet on the m a front for the past couple of years since acquiring tubi. There so basically a minnow in giants. Caroline this is when berg bloomberg world of technology. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. se fue la luz its happening. Pero todavia tenemos wifi para hacer las tareas. ¿y eso es algo bueno . Wifi y estudiar. Buenisimo. Wifi y pedir una pizza online seria buenisimo. Presentamos storm ready wifi. Solo de xfinity. Ahora puedes mantener una conexion confiable durante apagones, con datos celulares ilimitados y bateria de respaldo de hasta 4 horas para mantenerte conectado. Obtenlo solo con xfinity. El hogar del 10g network. Enterate mas hoy. Caroline welcome back to bloomberg technology, im Caroline Hyde in new york. Emily and im ed and i megan ludlow in new york i am ed ludlow in San Francisco. A lot of focus on economic data, with the Federal Reserve will do and before you know it,