Transcripts For BLOOMBERG Bloomberg 20240703 : vimarsana.com

BLOOMBERG Bloomberg July 3, 2024

Smart home device and generative alexa. We discuss with david lynn. Ed we are going nowhere on any asset class related to technology or otherwise. It is fed day and we will have special coverage of that decision later this afternoon. Basically the market sees them holding rates steady. Nasdaq 100 completely flat. Nasdaq Golden Dragon index had been outperforming, up a few tenths of 1 . We will talk about u. S. China relations in the context of tech later in the show. U. S. 10 year yield, for 3 . Bitcoin at 27,000 u. S. Dollars per token. This is the definition of treading water ahead of the big fed decision. Caroline all eyes on the macro. Go micro for a moment, the stock movers are interesting. There are updates from Certain Companies and im looking at the likes of intel for example, has been paring an earlier decline but notably we are seeing currently off by more than 2 . This is maybe the invasion day did not live up to expectations and particular we wanted color around 18 a chips. Who are the customers . We did get that. Apple highlight off by. 9 . The color on iphone 15 is mixed at best in terms of some of the ultimate desire to be buying in and one of the backlogs looking out looking like. Pinterest investor day looks promising. What is on the downside . Lets have a look at the latest ipo that came yesterday. Instacart is higher the last couple days. 32 20, above where was the priced at 30 but we are coming off that euphoric high. The pop was 40 and then ended the day at a 12 rise. Now we fade thats more. As investors take profit. Ed lets stick with ipos, the theme of the week. Lets get to the third major u. S. Listing of the week. Joining us on set, the man that runs to break news, ryan gord. I think we saw clay view indicated to open between 36 to 30. The ipo priced at 30, build up for us to our this listing. It is the second ipo at the share this week. Instacart priced at 30 per share. I would say you just brought attention to instacart. Is the sun coming up on ipos . Maybe. Caroline calling in early. Maybe its not quite as much to fully youth all the frost and i think that is what we are eating. It is lets see what happens today. There will be shifting around there. It seemed it is the third major offering in a week. There is clearly momentum. I spoke to andrew this morning, cofounder and ceo come on charlie and he said his claim is if your company that has discipline, if you are company that has good discipline and economics, you can get out and investors will listen to you. It is a claim, im sure we will see it in a while. Caroline we are about to go to a longterm investor whose view has been this company has capital discipline. All these companies are pricing at the top end of the range. So they are managing to lock in a decent amount of money, not leaving perhaps as much as some had left on the table. Who are those wanting to get into these deals . This is a be player, more retail focused. Do we know who is trying to buy in on firstaid . Ryan its a good question because when you think leyva was the first ipo premuch in two years to come from the software sector, we are used to seeing this window prior to thanksgiving being full of these. Obviously lets take over it out picture, 2019 and 2021. This is generally the type of costs we are expecting to see because they have a good fundamentals, the good unit economics, those kinds of headlines really that the big investors will think about maybe in the future as being part of the picture for them. As far as the retail side of it goes, we are going to get another test probably in the next couple weeks at burke and stocks a as i say the frost has not fully thought and lets see what happens in a couple weeks time. The excitement when we have an ipo window is why we have the employees that want liquidity for their stock, the Venture Capitalists who are coming on the show talking about why they got in early, the bank will bankers bankrolling it. You have this on the ground reporting. Is there genuine sustained excitement . Do the sources we speak to think the ipo window carries on or it is a shortlived euphoria . Ryan i have been covering ipos for a while and the fact people are now wanting to take calls to talk about ipos probably tells us where we are heading. It is funny you dont really have to find so much of an excuse anymore to bring up the idea theres going to be a company ipo in. He would probably be laughed out the door as recently as six months ago but back to the point about what drives it for some of these Venture Capital firms, of course in clave eos case, it is ai, it is Machine Learning, these are the has line that headline buzzed terms helping to push these offerings. If you can get that in front of your investors on the roadshow and drill down into why he will be at the forefront of the trends, they are all ears. Thank you. Get out here. Turning us now im say is john carlin, a Software Executive chairman who was an investor in the series b and series d. If you will allow me, i want to tell a little of your story. You invest a 7 million early 2016 and at that time clave you was 10 people. Explain to us in the audience what today means to you as one of the original backers. John its a huge milestone for me and more portly for the company. It was an exceptionally unique company to think about andrew and the team able to run without big losses and never needed funding after that. Now to be on the Center Commerce on the floor is amazing given the company was never really about raising huge amount of money. Caroline what it is about is software. It is about ensuring it can help other Companies Get the right digital message out at the right time. How much are we seeing them having a moat in this instance . How much can they insure they will rise above the competition now that they are public . Jon theres a pretty significant mode here. The technology happening build from the earliest days has defended its pricing, defended this and been the engine behind this unbelievably efficient road machine. Caroline we were hearing a bit about your story, you believed in this company before anyone else ultimately. 10 people, some follow it on with further checks. What ultimately was the recipe for you . You say it is capital discipline but there must have been Something Else they cut you excited as a general investor. Jon from the earliest days, they were walking to the beat of their own drum. Their unconventional entrepreneurs and super focus on the customer, focus on building product, not really interested in talking to investors. That is a different recipe, and it really got me excited in the early days because they were so technology and product centric. Ed can i ask you how you are going to transact in this listing and ipo . Will you remain a longterm investor of klaviyo . Jon has an early stage investor, we sold 18 which was a pro rata amount in earlystage investors and im a proud holder of the remaining shares. I have no intention to sell any. Ed you would note something we discussed with ryan that this is the First Company in the space to go public for quite some time, we are talking sass enterprise, call it what you will come automation. Does that signal anything more broadly to you about what has happened the last two years, with Higher Software companies . Jon its been a long dry spell for some ipos but at the end of the day, the thing that has not changed at all, what is most important, you pull the lens back in the general tailwind for Software Automation throughout the economy, that is the thing that has not gone away. There is no sign of movement, it is happening as aggressively as it ever has, so this is a good milestone, clave io to be the first to go public. I think it says something about the company but probably most importantly there is nothing slowing down the demand for software options. Caroline what is not slowing down is the hyper on Artificial Intelligence too. How much has that to become had to become part of the Business Model or messaging . Or did they not particularly adopt that . Jon absolutely. The interesting thing with clave io is Machine Learning has always been at the core of the product, so maybe messaging has been cap catching up lately with a business like this one over the last six to 12 months but it has been core to what the business does. Ed we are indicated to open between 36 and 36, we priced at 30. Talk to me about the day itself and what you are feeling right now on the floor of the New York Stock Exchange. Jon its an emotional day. I was looking around and we have 300 clave eoc are today on the floor joining the celebration. A lot of ogs that i was catching, had not seen in a long time. It is a special moment for that group but as andrew said recently, this morning, they are 1 done. That has always been their mantra. I would not bet against them. Caroline thank you for your time today, john karlen. Jon thank you. Good to be with you. Caroline stay well. He is the chairman. We have been talking about ai and ultimately not only the hype factor but perhaps some of the risks and indeed regulation. I caught up with the metapresident of bloomberg affairs at a concordia summit in new york city but we talked about a few things, particularly about the opensource nature of what has been rolled out. It is like an operating system, it pervades everything and lots of things will be built on top of it. Of course you can never perfectly predict how it will be used. You cannot perfectly litigate for that in advance. No doubt there will be people who are going to try to use it for bad purposes but in general, it is accepted in the sector but open sourcing these things leads to safer models because you can then openly look for vulnerabilities and fix them and that is certainly the attitude we believe is right at this stage on this great ai journey. Take hate speech, the prevalence of a speech on facebook is down to about 0. 02 . Im not just making that up, that is stats we publish every quarter and they are audited by independently. So the content you see online or facebook, two inch ofcom two bits of content could be hate speech and that is down over the last couple years for one reason only, ai. Because our classifies are getting better. Its important to talk about particularly the advance on a hugely consequential elections next year, india, the u. S. , mexico, the european union, possibly the u. K. And so on that yes generative ai might enable bad people to try to generate bad, misleading content, it also allows platforms like ours to act against that more quickly. It is an adversarial space where we are hopefully, that is our task, that we can use the tools more nimbly and effective then our adversaries. The sooner we can get beyond the kind of will it be the end of the world thing, which i think is a paralyzing effect on debate, it Caroline Caroline and when there is bias in the here and now. Yes i think there are here and now issues whether we can that we can deal with whether it is misinformation or transparency. I urge lawmakers to kind of fixate on that. Caroline thats the metapresident of global affairs. We brought in that someone who worked as a member of parliament in europe, he understands they are being commissioned and was a government official. He understands that but what about china . Ed it is top of mind for every tech company, largely in the context of ai so all i will say to our global audience, going check out the full panel because china was one of the surprise elements of that conversation. Coming up, huawei speaking to China Remains in the middle of increased tensions between the u. S. And china. More on how u. S. Officials are responding to the handset and chinas latest accusations against the u. S. This is bloomberg technology. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh ed time for talking tech. This is what we see in the news. Whats up users will be able to pay for services in india using the app. The Parent Company is expanding the feature to the country after launching it in brazil and singapore. Payments will be free for consumers. Businesses will pay a processing fee similar to a credit card transaction. Apple store workers in france called for a National Strike this weekend. Right as the iphone 15 is set to go on sale. A group of unions repaid negotiation talks with apple france, pushing for a 7 increase offset inflation. Apple offered 4. 5 increase in the company not has not responded for comment. Gina raimondo is raising concerns over the speed and scale of chinas technological advancements. During a congressional hearing tuesday, she said the release of huaweis new phone with an advanced chip upset her but she also noted the u. S. Has no evidence china can make the phones components en masse. Caroline lets stick with that thing because the u. S. Is not the only country suspicious of china technology. Huaweis technology in particular. Germanys intermittent Ministry Wants to ban parts from its mobile network. Lets get the context with oliver kirk. What is at stake here . How integral is huawei to germanys technological info structure . Oliver they actually dont know. This is a debate that dates back to the markel area on the question of whether they would have huawei and the 5g network era allocated. A lot has changed since the merkel area, era, particularly with china. They dont know the volume of hardware in this network and how dependent they are so they launched an audit in the spring to figure that out in the government did not keep track of it. So now we understand the interior ministry is pushing to ban huawei and cte from the network. This could be a huge undertaking particularly because we dont know how much of it it is and this is part of the d risking a new category of these were derisking in the wake ofed thd infrastructure story i remember going through the 5g super cycle in this country, north america, took years of getting the infrastructure in place before there was any coverage at all. What is the timeline for germany . You cant just say we will not use that name or, we will go to someone else. Oliver there are number of timelines but one of them is get it out by 2026. That is what we understand for talks. Germany is not particularly known for going at light speed for these things. The audit is not done and it goes through a number of other ministries and they will have to consult with Network Providers but Deutsche Telekom said this is unrealistic. The u. K. , trying to do something similar, set out a timeline from seven to 10 years but there will be a debate in weighing the pros and cons and and egg nation that is behind in Digital Infrastructure. Caroline who to they turn to if it is not huawei . Ericsson . Where they getting their tech from . Oliver ericsson and nokia but that comes with a number of questions themselves. Do they have the volume of material they need and for what cost. There are not a lot of cheap alternatives for russian gas or chinese tech. The third question, is the cost of development for the Digital Infrastructure in germany. Germany has some of the lowest Fiber Penetration in all of europe. 8 of households have fiber in germany, 51 france, 81 spain. They are behind and need to play catch up. Ed good to catch up. Thank you. Switching gears quickly, neural link is taking the next steps to make Science Fiction closer to reality. The brain implant startup led by elon musk is seeking outpatients in its first clinical trial. Neural link is asking for people with spinal cord injury or als. This is a story that caught your eye. It is fastmoving. They have the fda exemption for an Investigational Device and have a hospital on board to fund the procedure. What do you think of it . Caroline ultimately we know there has been the view on animals and we are looking at reallife impact. This is an Elon Musk Company of which there have been six or seven now really pushing Technology Forward in an deeply untrodden space. I think again it is about the safety, the precautions that come into place and ultimately who ends up driving for this technology. Ed the longterm promises reverse the impacts of severe and brain spinal injury. The first since neural link is talking about using the human brain with the implant to move a mouse cursor. This is the small steps were taking but it was really interesting to see them say lets get on with it. Caroline i think in many ways Artificial Intelligence, some people are depending on in this particular area. Coming up, so much to get back to in the world of ipo land. The third major u. S. Listing prepares to start trading. We will break down the details of the ipo next and maybe even get a price. This is bloomberg technology. Caroline time for work shifting, the time we look at the changing landscape of the labor market amid some advances in technology. Today we will focus on how much more on debt to marketing and software that goes with it because klaviyo is going public. What does the company do . This is all about helping brands target you and i in the most efficient and effective manner, right . Sure, yes. They do imo marketing, text marketing, they work with grants from unilever, work with popular sunscreen brand superfood and they are helping to reach out to their customers over email and text. Ed just remind our audience klaviyo indicated open at 36 to 38 per share, the ipo price that 30 per share. A busy week for you, a busy 10 days. Where does this listing compare with those that have gum come before. Before . Its interesting because all these Big Tech Companies that are going public are in distinct subsectors of fintech so there is talk about if klaviyo goes well then it could open up a window for the sass market. Obviously Enterprise Software is a big part of what Venture Capi

© 2025 Vimarsana