We wrap up the latest from googles antitrust trial and bring you what a new report that shows u. S. Warning the eu on is a act regulation and competition. Lets check in on the markets because blowout jobs number. We see the ramifications in the bond market, but tech manages to push through after initial knee jerk reaction. U. S. 10 year. We are headed towards multidecade highs since 2007. Bitcoin on the high side its a little bit of a desire to get into the risk assets on the back of some the numbers lets have a look at what is happening in individual stocks movers of technology. Bpd on a tear. We are seeing it outperform the last few months and weeks and currently on the date up. We are of some 4 . Chipmakers managing to push on the higher side. Im looking at tesla on the downside. We are all 0. 8. They once again cut prices up to 2250 being pulled down in terms of a price point. Keeping on pushing back. Lets have a look at what is happening more broadly in the macro data because maybe elon is reacting to that. Jobs hiring specifically in the tech sector. We are seeing what has been a focus on an issue of hiring within the Technology Space. Im interested whether or not that is really been worn out from macros perspective. Think we are still waiting for our guests to be brought on so will give him a moment to be set. We have been seeing what has been numbers. Unemployment rate holding at 3. 8 after a surge of unemployment reentered the job market. Participation remaining unchanged at 62. 8 . We want to dig into the areas we see growth. Hospitality and leisure, education and Health Care Sector which is been leading some of the rebalance. In the technology sector, we have been talking about letting go of people and not broadly receive more focus on maybe now more broadly we are seeing people may be starting to rehire. Daniel we are in the tech sector, the weighty softness has manifested has shifted because at the start of the year we saw the big wave of layoffs in the tech sector but now it is more about the softness in hiring, the difficulty and somebody laid off workers by the new jobs and it is something we see reflected in how employees are talking about the tech sector. We see Employee Confidence measured on glass door actually below 50 , that means under 50 of the tech employees have a positive Business Outlook for their employer. That is not a great situation to be in for the industry. Caroline can you give demographics on that . The kinds of people who are nervous . Daniel generally speaking, entrylevel workers tend to be less confident than say executives. We think about that it makes sense but one cut of that is middle managers have seen dramatic decline in their Business Confidence as well. Part of that might be because you look at Companies Cutting costs. The pressure falls on middle managers who have to enact these costcutting measures at the same time during more with less as they try to get those costs under control. Caroline how much is flexibility or a lack thereof bearing way . We are worried about Participation Rate. In limit we have seen that with woman we have seen that recover. That impact certain people more than others. Daniel we know flexibility is a really appealing feature for jobs beyond the tech sector. It benefits in different ways. It might be Flexible Work arrangements in locations or hours but it is absolutely something we see employees care a lot about. We are also seeing a lot of employers are pulling back on those options as they really try to get costs under control and be as productive as possible. The evidence i think is mixed there. There are employers getting by just fine in a Flexible Work arrangements. It is up to employers figure out what the best way is to manage their workforce. Caroline we have seen the oxygen within Technology Space sucked out of the room by Artificial Intelligence. What is happening from job openings and whether or not companies can feel those job openings for a high within their own liberal forces that exist or are they having to reshuffle the benches a bit . Daniel i think it is a little bit early to say because all of these units of ai tools are pretty new and the Company Still have not figured out exactly how to use them. Theyre not figured out what their strategy should be for using an extremity with these tools so i think right now we are seeing experimentation and they are not a lot of firm plans in place but i think training is a really great way employers can reward the loyal employees they have giving them opportunities for Career Growth and skill development. Really get access to a pool of talent that offers them a lot. Caroline wage growth slowing from a macro perspective see the jobs data. 4. 2 yearoveryear. What are we just a gimmick in the tech sector . Wages look like in tech sector . They are not falling but they are more stagnant year to year. Compensation is not just about base salary, it includes bonuses, equity and it is a place we have seen a bit of a pullback so it is not necessarily people are getting their bonuses cut, but when they are looking for a new job, may be the package they demand is not as large as it might have been a year ago. Caroline what signals do you look to . Your measuring sentiment which seems to be on the downside. Where do you look next because many in the macro perspective are thinking this jobs market has to eventually start to coal even though it defies that every single month. Daniel i think it is important to see that marriage of hard and soft data together because we do see that hard data is looking really healthy for the job market. Almost shockingly healthy compared to what were we were thinking coming into the year but i think it is important to look at the sentiment data as we look at how employees feel because who knows business better than their employees on the front lines every day or interacting with customers, seeing how the business is operating. It is why we think you cannot discount the use of the soft sentiment indicators. Caroline particularly from the middle management layer. Daniel zhao of glass door, we thank him. We unpacked the latest developments from the google antitrust trial. Rebecca allensworth will be joining us. Next week seem a likely to get the announcement as to whether or not this deal has been rectified enough for them to allow it to go through. We understand reporting microsoft inks this deal will be completed as soon as next week. We understand today was the last day they could get any comments as to the cma viewpoint on this deal. We are trading higher. From new york, this is bloomberg technology. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. [flight attendant alert] [baby crying] [snoring] [luggage rattling] [baby crying] dramatic music upbeat music begins for everyone whos endured the bad seat, finally, sweet, sweet redemption. The lexus tx. Threerow luxury that treats every seat like the best seat. caroline this is a great new analysis from the u. S. State department is warning the e. U. Policy makers about his proposal for generative ai regulation saying it is too vague. Could foster favoritism for big tech firms. One of the key reporters on this. What is the argument that head of the curve regulation and the eu is getting in before other countries seems to favor big tech even more than small . Anna these are interesting documents. Some of the arguments we heard before but leveled of detail in the documents were interesting to see the exchange between policymakers in u. S. And the current counterparts in europe. Sources we spoke with said it was offered in spirit of cooperation and alignment of values, not to criticize the eu when it comes to writing regular show ai it is important even the definitions of what Artificial Intelligence is, what do we mean by foundation models, does the finishes are aligned so whatever policy is passed in European Union can then be working together with whatever policies eventually pass in the United States and it is even possible for companies to comply with both. Caroline the a. I. Act, many push back against it because how they are applied, the original idea was it will be within the applications and when it is risky but now they seem to want to have transversely about what is within the foundation model. Is that the key issue of competition . Is it because it will be expensive to get that sort of transparency . Anna there are a lot of issues. It is interesting to see how this conversation in europe develops because the ai at ready to go at the beginning of this year. It was focused on the riskiness of the end use. This is a riskbased approach which u. S. Supporters but then with the release of chatgpt and other consumer facing ai products, there is really growing concern the application of these tools was not enough to regulate. The needs to be some kind of regulatory rules for the way the models are even developed in the first place and that is where we start to see pushback from companies who initially i think were pretty open to the ai act, this riskbased approach but they do not want to have percolators in europe saying how they can or cannot develop the underlying models and that is where we see the United States saying the way this is written could cause problems for innovation for the little guys trying to catch up with the Bigger Companies that have these models. We know how this was offered from the United States. Will watch closely how this is received in europe. Caroline thanks so much for bringing us this great story. It is the same names that you can make up time and time again and of course who foundational model, google and who is been under other antitrust viewpoint and particular regulation in the u. S. , alphabet. Thats revisit what has been happening throughout this week. The trials underway, the assessment what is happening with amazon. Rebecca allensworth joins us. Busy time in the world of antitrust. We all knew it was come. Im interested what you think about the alphabet case. We have had really phenomenal in terms of shocking pieces of revelations coming from the ceo of all the companies. Rival companies. Rebecca the big news is the testimony that she testified about what it was like to compete with google and hinted a bleak picture. Of his own company to compete so he mustve been feeling like he was walking a fine line but his point was we could approach apple with the same billions and billions of dollars and they were never going to take it. There always good to go with google and it is impossible to compete with google on search. Caroline does that play into googles hand and at least his argument apples argument has always been google is not the product. It is not very too big, theyre that much better. Rebecca that is right but the rest of the testimony the past few weeks, it has focused on this idea of scale and how scale is essential to build that better search product so part of why willing to pay as much as it was to be the default on apple was they wanted to get the scale. It was perfect for them to lose money on the deal in the short term if they could have the user data to build a product that could really compete with google. The question in this case, one way of claim it is, is google better because it is big, or is google big because it is better . Google wants you to think the latter. Google wants you to think they are one and they are big because they have a better product. I think the government is trying to tell a different story saying you have to be big to be good to me ought to let other companies have a shot at becoming big. Caroline i suppose it does push us forward to and era google under competitive threat because of generative ai because we are starting to see chat gpt, openai relationship with microsoft maybe bring people across the different kind of search product. More broadly, what did you make of the reporting around the ai act, some of the coinbase might not be able to compete with the Big Companies . How much of this is a never ending conversation when it comes to size and power . Rebecca absolutely. Any kind of regulation, unfortunately, most regulation, lots of percolation does benefit Big Companies in since compliance is expensive. It expressive to comply with the laws and some time to do something a Small Company cannot do. It is another reason why it being big is important and why we need to allow other companies the size but humans like google to get that kind of size and scale. Microsoft is not a Small Company by any measure. But it is in terms of market share for search. Caroline you have some other players like duckduckgo giving evidence there as well. Moving on towards what is also been front and center for us, the ftc analyzation of amazon in the marketplace. The cma over in the u. K. Also looking into the interpretation of cloud and how not to miss competition in that space either. Can you paint a picture of how regulation is evolving here, u. K. Come e. U. . Is everyone fighting the same fight . Rebecca everyone is fighting the same fight in distance everyone is recognizing the market power of these platforms. The Way Technology is changing fast and therefore the competitive conditions are changing fast and wanted to be adopted in their regulation to foster competition in all these new areas. The suit against amazons represent the third major strike by the government against a major american platform monopoly. The last one left is apple. Caroline indeed. To that point come when you are drilling in amazon and amazon getting into other peoples competitive space. It is becoming an advertiser. How do you see these inquisitions going . Do you think the ftc will win out or were they ultimately not need to win this case to change the direction of the way we think about monopolies and power and regulation . Rebecca both are possibly true. It is too early to say the ftc and doj attempt to rein in big tech has been unsuccessful. Theyve had disappointing losses in corker but they have had small wins and is only been a couple of years they have been trying to do this. Look at the 70s when in retrospect antitrust turn on a dime. But actually it took many years for that to crystallize. Think is too early to say. As far as the long run prospects for these imperatives, i think it depends on the political will. Law is not impervious to what the people want. I think people are starting to be more skeptical of market power. Caroline in that respect, we were aware the ftc investigation of them is going to take at least 18 months to start. Do timelines are in and investors my said something they should think about . Rebecca you said it before when you said you have to win to change the situation and i think the delay is a part of the explanation. It may not be true to file a suit and then six must later as a resolution and you have an outcome. It might take so long competitive conditions change and they think you were selling about is not really true anymore suing about is not really true anymore. That does not mean it is not have a deterrent effect. The company is no going forward, into their business dealings sorry. Caroline we just got wanting the president is walking out. Pres. Biden we created 13. 9 million new jobs. My dad had an expression, job is a lot more about than a paycheck. It is about your dignity. It is about respect. It is about being able to look your kid in the eye and say it is going to be ok and mean it. 236 thousand more americans if they have children they can say that to their children and mean it. The an implement rate stay below 4 for 20 months in a row, the longest stretch in 50 years. Record lows in unemployment for africanamericans and hispanic workers. And people with disabilities. Folks have been left behind in previous recoveries left behind for too long. We have the highest share of working age americans in the workforce in 20 years. It is no accident. It is binding on mx bi inflation isd coming down at thee same time. Nomics. Core inflation was just 2. 2 . The past three months. We have the lowest inflation of any major economy in the world. Today we are celebrating National Manufacturing day. It seems appropriate. I can think of no better way to mark the occasion then said thank the 13 million americans who are in manufacturing jobs. They are restoring our pride, making things in america, and today i want to highlight those 13 Million Manufacturing jobs, created since i took office. Twice as many as the previous administration. A report we learned early this week, spending on construction for new factories being built to generate more Economic Growth of jobs hit an alltime high last month. Folks, bidenomics is about investing in america and american workers. This is our investing in consider investing in a venturing than ever before. Before the pandemic, supply chain is a phrase most people did not associate with and think much about. Today, after delays and availability of parts and products, everyone has known about, they know why it is so important. My economic plan bring supply chains home. Investing in industries of the future so we can make things in america again with american workers. We are creating good jobs. Communities all across the country including in places that have been left behind the last some cases 20 years because the factories place still work in shut down, leaving them with no options, no jobs in the Community Come all over the midwest and all over the northeast. Bidenomicsbidenomics under you would not have to leave home to get a good job. I did not know how many times i heard on the road people saying my kids that a good education and said i have no job. Well, youre going to be