Chatgpt but with chatgpt boom with a stake in openai. Publicly traded markets from the macro context, this is one where we see a search for safety. Iran, israel, geopolitical risks heightened, and a squaring away of certain volatility that weve seen throughout the week when it comes to concerns about cpi, ppi as we move towards the weekend. Equities for once are moving the opposite way of the bond market, even though the bond market has been selling off it managed to ride higher. Today is the opposite paired we have seen money move into the havens that are the 10 year yield off by 8, 9 basis points. Money moving there. Money moving into the bloomberg dollar index, the highest weve seen since 2024. Money coming out of equities as we worry about geopolitical tensions off by one point 1. 4 on the nasdaq. Moving on, having a look at what is happening at another key risk asset, actually surprisingly flat for bitcoin over the course of a week. No volatility on a daytoday basis, we have just come off of some of those highs. Of course, Dollar Strength will mean a bit of a bitcoin weakness. What are you watching . Ed we have a load of Technology Stories this friday. Apple is up. 7 after a 4 jump on thursday. Which, i think, was the biggest jump since may of last year. Bloomberg is reporting a complete overhaul of the mac line. We will talk to mark later in the program. Alphabet alphabet the parent of google a little back. Recently, a lot more optimism the google is starting to get it right on ai. They will actually have product, particularly in the enterprise or commercial use case. Pulling back a little bit this friday after a key milestone, we are keeping our eyes on the banks. Bank earnings kick us off or earnings overall. We can see that its mixed fortunes. All of these three names moving to the downside. Going into it for technology, ai, what is happening with ai and banks is a big theme, but they have their individual stories. I wont tell you the story. To knowledge bassett is the correct person to bring us the banks cap and joins us on set in new york. Three big names all moving lower. Sonali all moving lower that is a bit of a reversal. Citigroup beat profit estimates here and we saw an earlier gain. The market is lower on the day but some of the declines that you are seeing are quite stark. Jp morgan for example intraday is having its worst day since march of 2023. We know that times are very different. Ed, we have jp morgan coming up for six consecutive years of record revenue. The question is, when analysts expected them to raise the bar on net interest income, are they being conservative when they havent done so, or are we seeing a consumer that is starting to come if not tapped out, starting to slow down a little bit in the way that theyre starting to borrow and spend on those credit card businesses in particular . Some positive news for anyone watching Bloomberg Technology in particular is that you see an uptick in the underwriting businesses. Ipos are back, baby. Youre seeing it in the big banks. Certainly, you dont see the advisory fees jumping back just as strong yet, but they are pretty optimistic over there at jp morgan on what things are starting to look like an investment banking. Caroline you didnt even mention ai. Bringing us the latest on an earnings context. We brace ourselves for next week. Now, all of the chip sectors under pressure. Signing a light on intel of three point 4 . Imd, one of the worst performers by almost 4 . Every member of the semiconductor index, Philadelphia Semiconductor index is in the red. Really, this is, as we see the reporting coming from the wall street journal at the moment, beijing ordering telecom carriers, like title mobile like china mobile, to say no to foreign chips in their Core Networks by 2027. This is notable but perhaps unsurprising. Ed it is another development in chinas effort to onshore their own semiconductor industry. The journal, one key part of their report is that actually the ministry for Information Technology has given a timeline, a timeline or deadline, for not just china mobile but china unicom and China Telecom to swap out foreign chips. Those being u. S. Chipmakers, 25 percent revenue historically from china on the more commercial use case for chips, and put in a domestic one. The question is, is there a domestic supply chain ready to support that . Caroline by 2027 they may well hope so. Almost front running this was a great piece out of Bloomberg Intelligence saying that chinese export curbs are actually more of the risk then u. S. Export curbs at the moment. This is titfortat that you and i have been reporting on since we first got together in 2022 on this technology show. Really thinking about how the u. S. Is trying to restrain some of its own Technology Going into china while unsurprisingly china will be doing the same in reverse. This time, chinas export restrictions will be key policy risk to some of the u. S. Chip manufacturers that have been recent years built up their overall supply chain dependency on china. That is another interesting drop at the moment, whether it is export restrictions or at the moment import restrictions coming from china on u. S. Tech. Ed we should get to someone who has skin in the game. Joining us is the Portfolio Manager on the Global Technology leaders and Sustainable Futures technology funds. I think that im right in saying that if we take out amd as an example, its one name that you have exposure to. The journal is reporting one specific industry case of a much broader thing where china wants its domestic entities to use domestic chips. Your response to that . Well, to put a little of this and context, china are doing foreign chips and telcos. We dont see it as being a huge change because substantially that is a market that has been dominated by huawei. Use of inhouse chips has been around for a number of years now, since Chip Companies were banned. In terms of china telco, 5g, that peaked some time ago. Other areas, they have had a significant correction. For china, who may want to place u. S. Chips, but actually using seven nanometer chips domestically, they dont have that supply yet. For them to get to five nanometer you will need to meet those for deployment which will ultimately need to be u. S. Chips by that time period. We think that this is ongoing. In terms of the market it is not hugely significant for the areas we are focused on. Caroline lets go to where you are focused. This comes in the current context of a friend oversupply. We are all of a fret over supply. We are all envisioning a world of Artificial Intelligence, but we need the chips, the supply chain, we need the energy. What chips names are going to be doing well in spite of geopolitical headwinds . Alison when i started looking at Technology Stocks back in 1996, i think over one third of chips were actually built in the u. S. Over 30 . Going forward to the pandemic, that was pulled percent. We see that was 12 . We see an ongoing focus of deglobalization thats part of national security. It is part of National Interest for ai. It is also part of the overall focus on improving supply chain standards, esg standards throughout the Technology Supply chain. Therefore, you think that actually manufacturing is becoming a more competitive advantage. Many contract manufacturers, for example flextronics, the ability to manufacture at scale, much smaller margins and that could traditionally be easily moved among competitors, but that is becoming more difficult at scale for many to move the manufacturing capacity around. We think that that is one way to see deglobalization. The chips act plays into where companies manufacture. Caroline as a Global Technology leaders in Sustainable Future tech fund, do you worry that you will have to sacrifice margin on some of the companies you are investing in globally because they have to manufacture in more expensive places to secure a supply chain . Or can you start to play out opportunities more globally being overlooked as we have all just focused on a socalled magnificent seven . Alison i think that there is a significant focus on margin. The Morgan StanleyTechnology Conference in march showed the two most used terms from the conference where ai and chips act. It was margins and efficiency. That is one of the really interesting aspects of where we are. We have emerging new technology also happening at a time when we have this rise in the cost of capital and companies are focused on efficiency and improving margins. In that case, really interesting opportunities for investors. It is a stock pickers market. It is an easy to generalize on sectors. It is very much about active management, which is typical when you hit these technology inflection points. Ed in this stock pickers market, should you pick apple . Apple is becoming increasingly attractive, it seems, to you guys. 12 month forward pe of 25 times. It had been downtrodden. Now is it a good name . Alison we own apple within our portfolio, but it is not one of our Largest Holdings and has not been for quite some time. Apple is a tremendous company that Led Technology in each of the last three waves. The pc wave, mobile, internet, they started from product catalysts by apple. Ai was started by the catalyst of microsoft, chatgpt, openai, and nvidia. Apples role in ai has yet to be defined. We are sure that over the longer term they will continue to innovate, but now they are not one of the early drivers of the generative ai wave. Caroline alison porter, a joy to have you on. Thank you talking this through the winners and losers you are looking at. Finishing on apple and its focus, or lack thereof, on ai. Apple overhauling its mac line with inhouse processors that focus on Artificial Intelligence. We will bring you the details next. This is Bloomberg Technology. Caroline apple is looking to boost lagging computer sales with an overhaul of its mac line , planning to unveil an aifocused processor. Apple is aiming to unleash the updated computers late this year to early next year. Joining us with the scoop is mark gurman. This is a very quick upgrade. The cycle is so short. Mark thank you for having me. Apple started off on a 1. 5 year upgrade cycle and they have accelerated that. The chips came sooner than anticipated in october 2020 3, 6 month ago. The m4 chips will be coming one year after the m3 processors. They are planning imac, mac mini, mac pros for the release of 2024, early 2025. This is an accelerated timeline. Its interesting because this matches the timeline of processor upgrades that you see on the iphone and that you once saw on the ipad, but no longer. This is pretty significant inhouse silicon is becoming a more important part of the companys story. Other companies are so hyper focused on the cloud. Apple is focused on in device chips. Ed that is where we should focus, mark. The last guest is an apple shareholder. She tells us that to her mind apples role in ai is yet to be defined. I look at where the stock closed on thursday after you published your report and the momentum today, and i think that the market sees an ai story. What are you hearing internally at apple on this side of it . Mark the ai story at apple exists and it is almost the complete opposite of what youre seeing from other companies. There is so much hype around nvidia because of their Cloud Infrastructure that powers Artificial Intelligence. Chatgpt and gemini. They are all cloud products. Apple is an on device product which makes it more privacy centric and in some cases can perform actions more quickly with no lag time because it is on the devices themselves. The upgraded ai components that you are seeing on the m4 this year and the pro chip in the iphone 16 later this year, upgraded neural engines, improved processing, improved microphones to optimize Artificial Intelligence and siri on the device. Apple has been shipping neural engines for several years now, but this is going to be dubbed the biggest upgrade to the neural engines since the component was first released several years ago. Ed bloombergs mark gurman, brilliant. Coming up, docusign is unveiling a new platform and expansion of the company strategy. We will discuss that with the ceo, next. This is bloomberg. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan Wealth Management. Ed this is talking tech. Tokyobased startup capitalizing on surging interest from japanese firms founded by x google researchers. Partnerships with blueChip Companies in an effort to build out japans ai ecosystem. They use small data sets to train lowcost genai models that could be used to ramp up a companies ai capabilities. Plus, samsung is set to unveil a 45 billion dollar pushed into u. S. Chipmaking as soon as next week. According to sources they will outline a project in texas after securing government grants. It is the latest push from the Biden Administration to revitalize chipmaking and the united states. The sector trying again on advancing the reauthorization of a u. S. Spy bill. The Foreign Intelligence Surveillance Act failed to reach the floor on wednesday over gop concerns over privacy in section 702. That provision allows the surveillance of foreign targets and the potential to warrant less warrantlessly surveilled americans. Caroline. Caroline lets move away from politics to product announcements. Docusign holdings had its annual momentum conference this week, and it set up some new products including an intelligent Agreement Management platform. Lets dig into what that is. The docusign see you know, im pleased to welcome you. Thank you for joining. How is this different from what people already experience . Allan so, the people mostly no less for signature. That will continue. If you think about agreements, they go through an entire journey. There is pain and efficiency in every part of the journey. If you think of salespeople when they reach an agreement in principle to when they can finally sign an agreement or purchasing manager trying to figure out if their vendor is living up to their agreements, or a recruiter trying to close a candidate, those are at their core agreement problems and we are delivering a suite to help companies solve their entire range of agreement problems. Caroline i have a Central Depository and i know where my legal agreements are and i can use generative ai to summarize them to ensure that im learning the most to ensure that they are following a theme in line and purpose. Why are they different from when you unveil in late may with their repository system and genai . Allan lots of folks do storage, and more generally manage documents, but agreements are very unique. They have a particular structure, there is a tremendous amount of data in them, and you need to understand the context. We are experts in that, the largest player. We focus on agreements and have a tremendous amount of Domain Knowledge in the intricacies of agreements. There is workflow associated with agreements and we are bringing tools to help companies deliver those in a more delightful and digitally native way. Ed good morning. It is ed in san francisco. In the history of technology there are companies that completely reinvent themselves. Take blackberry. They used to make smartphones and now they largely make automotive software. The esignature product is still everything for you guys. I wonder if youre trying to tell your investors, users, audience, that you see a future for docusign where it is Something Different beyond esignature where the Main Business isnt hesignature . Allan beyond eesignature beyond eesignature, but it will be critical for docusign for years to come, and after all the signature moment is pivotal, the highest value moment in the journey. We are expanding to providing a full suite of offerings related to every step in the agreement journey. No one has done that before. I think that we are in the best position to do that with the trust, customer reach, and expertise and we are benefiting from recent developments in ai. I thing now is our moment. Ed you talked about docusign being in transition. Considering where you are in that transition, give yourself a scorecard on your performance and where you have been in delivering that. Allan i like to measure outcomes. I wouldnt give myself an a yet. I think that we are making good progress. I would give it a b. We have done an excellent job revitalizing the innovation engine and bringing out a really robust suite of products informed by years of Customer Feedback and tremendous engagement from beta customers. Now, its time to take that to market and unroll it across the customer segments and geographies and industries docusign serves. That will be a multiyear journey. The job isnt done yet, but this is a major milestone for us and we are excited about what the future holds. Caroline come tell us how it goes. Allan thygesen, thank you for stopping by the studio. Ed coming up, buying into openai. We discuss with our chief futurist. That conversation next. It is lets be honest, a highly unusual method of getting into a very closely held funky private company. This is Bloomberg Technology. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price