Again as it opens an investigation into one of apples most critical suppliers. Details ahead. Plus we go back to the picket line as Hollywood Studios return to negotiations with actors this week to end the monthslong strike. But first, i check in on those markets, and boy, has there been some volatility, particularly in treasuries. Whats the read across here . Theres been tremendous volatility at the surface level, so much so, lets start beneath the surface. If we had been looking at this board an hour and a half ago, there would have been at least some red on it. But it flipped to the upside. Microsoft and meta, two of the mega cap companies. That are reporting this week. Microsoft tomorrow, and meta on wednesday. A big piece of this turnaround for sure from a micro standpoint. For microsoft, one of the keys could be their outlook for azure, the Cloud Business that was disappointing. Plus color on a. I. , for meta, its all about whether or not they can maintain mid teens growth. That could have a lot to do with price. We also have bitcoin in rally mode, up seven over the last nine days. That is helping out riot platforms, up 10. 2 . Nvidia receiving some favorable commentary from a wall Street Investment bank. Lets put this together with the nasdaq 100 and see what it means. Heres this roller coaster ride. To your point at the lows, it was more of a macro story, caroline, the fact you had the 10year yield back above 5 following the twoyear yield. The yield curve really flattening out. That makes stocks look more expensive, but big cap tech in particular, the growth, the liquidity, it tightens the situation overall. But as the 10year yield slipped back to 490, look at the rally we have, plus some of the individual movers we were just looking at. On the year, its very interesting. Because over the last three months, weve had stocks down. The s p 500 down about 8 , so on the year, up about 10 . The nasdaq 100 at one point up more than 40 about, 10 very roughly coming off both indexes. You can see, though, the mega cap tech indexes that have some of these stocks that are reporting this week up much more. What makes this interesting, caroline, if with go into the bloomberg terminal, it means the s p 500 is doing something the nasdaq 1100 is not doing, the s p 500 on the day was firmly below the 200day moving average, back above, it looks like were probably see more weakness to the downside. The question is, will the nasdaq 100 follow at some point . It could have just as much to do with yields as it could with earnings this week and next. Caroline macro charts, tech, do you it all. Meanwhile, a key corporate story of the day has been chinese authorities, shaking the confidence of Foreign Companies in particular. Thats with a series of arrests across industries, and an investigation into the allimportant tech name that is foxconn, a key supplier to apple. For more, we want to dig into in this narrative. The director of the rode upgroup, and your expertise is so important. You advise within china, and im interested as to whether you think this is an ongoing pushback because of, well, the tech issues that weve seen, the rivalry between u. S. And china, or is it Something Different entirely . Well, lots of layers of intrigue here, of course. Any Multinational Corporation operating in china knows that theres always the risk of tax and compliance audits. This runs from technology to retail really across the gamut. But in this geopolitical climate, whenever these moves are taken, theres always the question of whether theres more of a preliminary tinge here of economic coercion. Of course, foxconn being so closely tied to apple, its more of a question mark here in terms of targeting. There have been rumors of informal bans against apple products. This comes in the wake of revelations around the breakthrough, making it a more formidable competitor to apple as well. So lots of Different Things to untangle here. Other companies also facing crackdowns from security laws, but theres a bit more to unpack here and whether this is truly a case for coercion and how it could tie into the taiwanese election as well. Yeah, lets dig into that in a moment. Basically saying they will collaborate with authorities, and indeed, you mentioned this is in some ways to do with reviewing of land use, in particular tax audits. Tell us a little bit more about the added complexity, the founder of foxconn has stepped down because hes running for the taiwanese election. Reva he is, and, of course, that changes up the race a bit. Hes running as an independent. This is a very complex electoral dynamic for beijing, and trying to favor an outcome for the one that is more friendly to mineland policies to mainland policies. Its hard to conclude, though, that a move against foxconn would translate into a political favorability toward beijing when it comes to the upcoming taiwanelection in january. Theres a question of whether the participation in the race would divide the Opposition Vote in a way that undermines the k. M. T. , which beijing would not like to lend. But still, thats a very complex logic chain, and i doubt that these moves against foxconn would translate into them pulling back from the race. So again, i think theres a temptation to see everything as a highly politicized move, but here, i think we need to take a closer look at apples diversification moves, other Electronics Companies and their diversification moves. China, of course, has a very big impulse now to strike back at u. S. Led technology and investment controls. We just had another round of u. S. Led chip controls, which is putting a lot of pressure on major u. S. Tech partners to include taiwan. So that is really, i think, the hypothesis to test here. Caroline when you put, of course, you say its easy to go for the highly political lens, go for the highly economic lens, because all of this comes in a much tougher context for china more broadly. Reva absolutely. So anything perceived as retribution are falling into the scope of tightening laws around counter espionage and countering any type of perceived espionage activity. Crackdowns around Data Security in general, Multinational Corporations are already on high alert. And this certainly doesnt help the souring investment climate. As weve already seen, f. D. I. Inflows into china have been leveling off, particularly since 2019. Thats been very worrying to the point where you see the state council of china putting out all kinds of pledges to say its ok, were doing things to include very notable things like easing cross border flows and data regulations, a big ask for many of these companies. At the same time, every time that the u. S. Engages in another round of technology and investment controls, there is this impulse to strike back, and youre seeing this through landmark legislation coming out of china, everything from counter espionage laws, the Foreign Relations law, its a form of codifying retribution. For example, controls on artificial and natural graphite, artificial graphite is very critical for e. D. Bat riis. Weve soon restrictions on other exports. Those are important for semiconductor manufacturing. All of this only underscores the unreliability of china in these critical value chains. That can energize diversification moves, but of course china is looking to show where it can create change in the here and now. Caroline it inflicts pain on itll own publicly traded companies. Im looking at the index, which has only received of about three years ago, to try to be the chinese version of the nasdaq 100, and it hit a record low since itll inception. We are worried about growth and a weak export outlook, not to mention some of the political elements. So go back to what you advise clients in the here and now, reva. You are someone who looks at the advisory. If im about to think about entering the country, do you say i wouldnt . Reva well, it depends on where you are, which value chain were speaking of. Even as diversification is happening, you can look at apple, you can even look at foxconns footprint and how it has a notable presence in china, but emerging presence in places like india, mexico, vietnam. That trend is happening, of course, but these companies are also greatly exposed, apple in particular. As these companies are engaged in the balancing act, it is very important to understand the intent behind chinas policy moves. Its caught between trying to promote a healthier Foreign Investment climate to counteract the forces of its structural economic down turn, and that is something that is going to last for a while. At the same time, to stay alert to u. S. Led and partner moves on technology and investment controls, this is a fastevolving space. There is a lot packed into, for example, the 400some pages of controls that came out just last week from the u. S. That is making it very hard for Technology Companies in particular at the leading edge to continue operating in china. You only have to look at samsung, for example, to see how actively they are diversifying outside of china already. So lots of moves in play. Balancing acts are hard to pull off in this geopolitical climate, but really depends on where you have a credible competitor in the space, where youre at the leading edge and where other opportunities lie outside of china. Caroline such complexity, and you help break it down. Thank you, reva. Meanwhile, coming up, well go behind the scenes with one of the Fastest Growing fin techs here in europe. The c. E. O. Of tszyu lch is going to join us. Meanwhile, lets get you up to speed with other companies on the move, in particular those that are exposed to china, but rallying. Nvidia, the a. I. Darling that actually fell almost 9 last week. So ill be bouncing back as the music changes, is there other context thats underlying the 3. 5 rally on the day . Last week was the worst week since Early September 2022. From london, this is Bloomberg Technology. Caroline the Bloomberg Technology summit is going to kick off tomorrow right here in london, showcasing a whole range of startups in the biotech field, healthcare standouts, during a series of discussions about the u. K. s global role and the most pressing questions in technology today, whether it be climate change, a. I. In a few weeks, the u. K. Government plans to convene hundreds of executives, government leaders to promote some investing opportunities in british companies, including those working on nuclear fusion, deep tech, but most notably thinking about how a. I. Safety can be seeped into the global narrative right now. Lets dive deeper into the world of the tech scene here in the u. K. The c. E. O. Of zilch, europes Fastest Growing company in just 14 months. Selfprofessed growth, and im interested in this time, what has been your Business Model . I know its Consumer Credit basically, reducing costs. How has that managed to see that growth in what has been a much tougher time for tech . I think whats interesting to note here is that the landscape, which if i paint the picture, it will be why were seeing this growth to the race of the market, and that is that the landscape today is that we have high cost of capital, what that typically means is your lenders, banks, tend to withdraw themselves from lending. So you have financial exclusion at its highest, so the demand goes crazy for credit products. At the same time, you have the cost of living has gone up. And so you have demand from the mass market is really intense for products, and typically what happens is you have lenders actually thrive in a market like this, but they make a lot of money off the customer. Whats unique about zilch is that we found a way to generate add revenue from brands when our customers shop, and were using that to offset the cost of credit to customers, while servicing this mega demand. So for us, were seeing ultrahigh growth through the next year to two years. Based on all of this coming together, most uniquely providing lots of saves. Were talking about hundreds of millions in saves in fees for consumers as they use our product and move away from traditional lending products, like revolving credit cards. Caroline they can improve a credit score, not depend on credit cards. Im interested, as a south african entrepreneur, to come and build in london, why . I mean, i think its part of why theres the tech summit tomorrow. Theres a lot going on in london. We look at the market here and say, you know, we really wanted access to europe, of course, to the United States. Caroline you still got access to europe . We still do. A lot of people have spoken about brexit and what has that changed . You just need to make sure your licensing is correct and understand how to operate in that environment. Regulation, as long as its clear, is a fantastic thing. We also said this for our industry, which is why zilch is one of the only regulated providers in the space. Were calling for regulation. I make this comment, as long as the rules are clear, you can engage with those rules and transact. So we do have access to europe and understand very well from the United Kingdom, and equally, the United States, which is a massive opportunity for us. So we really wanted to be in london. We think we can control what were doing from here really well. Great, unique pool of talent, lots of walks of life and did you want types of backgrounds in our business, and we really wanted the diversity in the company as we built this product, something we want everyone to enjoy. Caroline phillip, what about those that you view for money is that pool of money u. K. Based, and is it firm at this moment when people are questioning the valuations . I think it just depends on the business. Weve seen a lot of companies raising up rounds, youve also seen down rounds. Theres been an adjustment, no doubt about that. The way we think about it ourselves is, do you have enough capital and a sustainable Business Model to get yourself to break even and beyond right now in this market . I think thats how we see at least our company. And the strong view is, as long as you can demonstrate that and that is the case, youre probably going to stand out in business right now. Thats not because theres a lot of terrible businesses, just because a lot of money was chasing high yield. They want growth at all cost, and the problem is they sacrifice the margin and the real Business Model in some cases for that. And the chickens are coming home to roost. If you have a real profitable margin and enough capital to get to break or beyond, we still think that you can demonstrate the real value in your company, and you can grow in and beyond your valuation. And thats really how we are thinking about our business. So pools of capitalwise, i mean, i think in the u. K. We sometimes underestimate capital on this planet in the United Kingdom. But we certainly do see in our business a spread from the u. S. And u. K. , and that begs the question, where do you go next . What do you do next as a company . Were evaluating that right now. Caroline ok. Leave us on the idea that were seeing some raising of funds. Zilch will be at the Technology Summit tomorrow. Well be talking about the wealth of money later in the show, whether its v. C. s. We got the general partner from cybersecurity v. C. Firm joining us, as she wants to discuss some of the trends shes seeing across the sector. Meanwhile, lets get into the Public Markets as well. Lets tune into whats happening with airbnb. A rally, a bounceback from some questions regarding regulation. We were just talking about financial fin tech regulation there, and certainly in new york, its been a focus in terms of regulatory pushback. Currently theyre up almost 4 . From new york, usually from San Francisco usually, from london today, this is Bloomberg Technology. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Caroline wed be remiss if we werent thinking about some of the geopolitical situation we currently live within, and its notable that in the concerns around conflict in the middle east, government and private companies are looking to continue to beep up their cybersecurity. And cyber start ups are turning to others. Its portfolio is valued at 30 billion. Joining us now from london is emily heath, general partner at cyberstarts. It is wonderful to have some time with you. Emily, the british yes, i am. Caroline you have worked for a whole host of Companies Across industries, such as airlines, but youve been, of course, a key company that you are chief officer. Now youre using your expertise to allocate capital. Why . Emily this is a very, very unique model. Were a very small but mighty cyberonly Venture Capital firm. And theres a secret sauce behind this firm. Theyre very small. Theres three partners, two in tel aviv and me in San Francisco. We each bring something very different. Weve got entrepreneurs, traditional Venture Capitals, and myself being the practitioner. When you think the experience to young founders that are in the very early seed stages, we forget sometimes as practitioners how much value we can actually add to Young Companies to make sure that we stress test the problem statements that they have make sure theyre building long lasting, meaningful companies. Caroline founded in 2018 by sequoia partner, but also the godfather of the israeli cybersecurity scene. Just talk to us at the moment about how you are seeing the ecosystem affected there. You must have, of course, a large amount of Companies Based there. Emily yes, every one of our companies is based in israel. Theres a sadness. I mean, ther