Apple's Promotion in China and Meta's Music Revenue Sharing

money from videos set to music. What it all means for Facebooks and Instagram's efforts to outrun TikTok and the flight of tech workers may well be leaving a hole in San Francisco. Kanda City recover or the Silicon Valley need to start rethinking reinventing itself as a tech huck. We'll talk about that later this hour. All of that in a moment, But first, I want to get a look at Walmart. I want to bring in our Bloombook consumer team leader John Edwards. John, what's I take on

these results? Uh? Well, yeah, it's it's uh, you know, obviously to some extent of a surprise, given that Walmart had expressed confidence uh previously in how it would handle uh, you know, bringing its inventories down. You know, it was something of a contrast with Target, which had uh, you know, moved aggressively to start, you know, cutting prices more quickly to really you know, slash those inventories which have had

built up at a lot of retailers. Walmart had said that it would sort of let them ease down over the next couple of quarters. But I think what they're seeing is that consumers are even more hit by the high inflation than they had expected at Walmart, and so uh, you know, they are also having to move more aggressively than they had hoped and thus cut prices uh deeper than they had hoped to and um and thus you know,

cut into margins. This from Walmart CEO Doug McMillan. He says the increasing levels of food and fuel inflation are affecting how customers spend. We're now anticipating more pressure on general merchandise in the back half. I mean, this isn't going to assuage any fears about a recession, is it. I mean, isn't this going to have potentially a big

impact on markets across the board. Yeah, No, I think people are going to be pretty concerned by this because you know, again, Walmart you know, had been you know out there, uh you know, speaking you know, pretty uh brashly about you know, how it was going to be able to handle this, uh, this situation without taking any drastic steps and uh but you know what, as as McMillan was saying there, what they're seeing is that, um, you know, the shift in in consumer behavior, which you know,

um is part of what led to the inventory build up in the first place, as people started, uh going out more and shifting away from the sort of spending on the house and home that they've been doing in the past. Now a further shift is happening as people realize, you know, these uh you know, food prices and fuel prices are really hurting them, and so they're shifting away from big ticket items, continuing to spend on food and things that they have to that they have to buy.

But you know, the margins are are lower on this. Yes, indeed, Well the pressure is on. John. I really appreciate you sharing some extra context there. I'm gonna let you get back to covering those Walmart results. John Edwards, whose leads are US consumer tech team at Bloomberg. Thank you, um.

Walmart's results not going to help quell any anxiety among tech investors as we await more earnings this week, We're expecting results from Apple, Alphabet, Amazon, Meta, all of which could give more of an indication about just how large or rest looms. Meantime, the market turmoil has sealed, the I p O window almost completely shut. At this rate, two will be one of the quietest years for public

offerings in recent memory. For more on this, I want to bring in Phil has Like, founder and chief strategy officer at Equities and Securities. So, Phil, I assume this walmartin news not going to help. The I p O window just gonna stay even tight more tightly shut, right. I think that's absolutely right. This is kind of just another month of more kind of hits to the ip

O market and its prospects. You know, Walmart maybe think like a different company compared to technology companies where it's selling milk and staples, but that's still going to feed through to other companies as well. I think the real eye is going to be on some of these tech stocks, and as they report later to the week, I'm sure, a lot of bankers and companies that were hoping to tap the markets are waiting with dated breath. So are is the I p O windows shut across the board

for all kinds of companies? Or for example, with this walmartin news, does it more effect companies that are focused on e commerce or you know, is this something happening more broadly? Yeah, I think that's totally right. You know, we we define so many different companies of being in technology, So I think any company that's related to consumer spending, maybe it's coming up with solutions for aviation or or

or groceries are going to be severely impacted. But on the other hand, you've got a lot of companies that are actually selling direct to enterprises, right, You've got traditional software companies, they'll feel less impact from the Walmart news that they're going to keep a really close eye on

some of the bigger tech names as they report. Um. However, you know, it's it's kind of a perfect storm where we've got still continuing uncertainty about inflation, you've got really tough earnings updates and guidance given from companies like Walmart

and even Snap last week. Uh, and you've also got a historically really slow part of the year for I p O s as well, So that kind of all comes together and you're probably not seeing anything go out the door until key four KKR told the information that I p O s are a year away. How far away do you think they are? I think that's about right. I think you've got companies that are preparing everything if if the economy does turn around a little bit more quickly.

You've got UH finance teams at each of these pre I p O companies. You know, we speak to them a lot, and and they're gearing up to be ready when that window kind of comes available. Maybe there's an opportunity to que for for the strongest, most marquee names, the companies that everyone's super familiar with UM. But other than that, I tend to agree it's probably not going to be until the closed IPO window. Is creating some

tension between employees and employers. You've got all of these employees working at these startups who thought maybe they were going to get an exit and soon that's not happening.

What are you seeing happening below the surface. Sure, so it equities and we have a really good lens and to kind of the feelings and the sentiment of employees that hold these shares, and a lot of the conversations that those employees had with their employer last year was that everything's great, We're raising a lot of money, We're gonna be able to go public soon and get liquidity,

and that's certainly not the case. And it's actually being kind of exacerbated by the fact that there's been some recent news coming out from some companies where insiders, mainly executives or founders, actually took a lot of chips off the table in two thousand twenty one and better times,

but didn't make that available to employees. And to me, that's kind of serving is a bit of few on the fire for what I imagine will be uh probably an uprising is a bit extreme, but I think a big movement from employees to ask their employers for more opportunities for liquidity since it's so important, you know, in the spurring economy. Right there's the company Data Robot. The CEO just reportedly resigned there in part due to share sales that executives were allowed to do that longtime lower

level employees were not allowed to do. What are the ripple effects to see that you see happening here. I mean, do you think employees will start walking out looking for other jobs or do they not? There are there not a lot of choices right now because the market is so tight and you've got tech hiring freezes and layoffs happening across the board. Well, if you ask any recruiter at a you know, a venture back company, if it's become easy or too higher engineers, it has not been.

So I think that the job market for those types of folks is still really, really hot, and so I think there will be some voting with their feet. The data robot situation in particular was really bad in the sense that these were executives that only joined the company two years ago or so, you know at equities, and we see founders that take chips off the table after they've put their blood, sweat and tears and built the

business for the last eight, nine, time eleven years. And I think that's actually pretty well received by employees and it seems very justified. Um, but when you see some senior executive haven't been around very long, that's what really frustrates people. So I think, uh, founders and CEOs really

have a choice. You can be reactive and uh, you know, hope that employees stick around, or you can be proactive and start talking about liquidity um because it is a valve that companies can use to retain their best, uh, their best employees without having to dig into more money out of their you know, their balance sheets that are obviously getting hurt right now in the current economy. So I think it's kind of a win win for everyone.

All Right, Well, it's good to hear about some win wins in a situation where it sounds like there's a lot of lose losing happening. Equities and Securities Founder and CHI strategy officer Phil has always good to have your context here on the show. Thanks coming up, iPhones for sale but only in China. We will explain why next this is Bloomberg. Well, in an unusual move, Apple is offering a discount for a slew of products, but only

in China. iPhones, Apple watches, and air pods will be on sale in China for four days as the company prepares to roll out the next generation of Apple devices. The discounts come as China's economy struggles under the weight of multiple COVID lockdowns are Markerman, of course covers all things Apple. So this is fairly rare, isn't it, Mark This is incredibly rare, right, I mean, right now, in

the United States, Apples gearing up for a tax holiday. Right, so in a handful of states you'll be able to buy select Apple products without paying tax. You have Singles Day in China, which is a popular shopping day. You have Cyber Monday and Black Friday in the US. Right, you have education discounts, but a one off, rare shopping holiday for a few days in China. This is not something I've ever seen before. Now here's something to point out.

On Thursday, that's Apple earnings day. On Friday is when this sale kicks off. As you mentioned, there have been economic issues, there have been sales slowdowns, there have been economic concerns across China over the last several months. Perhaps this might be timed in response the day after earnings because maybe the China results, and of course this is just speculation aren't going to be as hot as maybe

some people have expected. And this is a quick and easy way to prepare investors, right in analysts to show we have a quick solution here, and we think a sale nearly hundred dollars in savings on some items right on the high end iPhones in particular, those four days could boost sales immediately into the fourth quarter. Tell obviously looking ahead to earnings in the next two days, we'll learn more. There are you saying this is potentially a

bad sign? I mean potentially a bad sign, right, I mean if things are all perfect in terms of sales right now in China, I don't know if Apple would be doing a random sale like this, right. Their sales are usually tied to a specific holiday or a specific event. There's none going on in China at the end of this week that I could particularly think of. So there's a reason that you really want to drum up excitement in sales over this, over these products right now, with

these discounts. I don't really see this as a reason to clear inventory, right. I don't think that's necessary. The new iPhones aren't going to go on sale for about three months now, so they still need write a quarter

of a year worth of inventory. Many of the products that are going on sale for this four day special, those products are going to remain on sale even after the iPhone fourteen and the other new products come out right, the Apple Watches that they're handling with this discount, the iPhone se, the iPhone thirteen, the third generation air pods, those are all going to be on sale until next year anyways. So I don't think this is clearly clearing inventory.

They clearly want to drop up sales somehow, someway with this interesting. All right, we'll keep watching. Of course, We're gonna be like watching your coverage of earnings later this week, and then we'll be watching to see how this sales promotion rolls out. Mark German, thank you well, just call the latest episode of Keeping Up with TikTok. Meta is now introducing music revenue sharing on Facebook, which will help

creators make money from videos that use licensed music. It might also help Facebook compete with TikTok, or will it. Last week, Facebook also changed its timeline algorithm to look more like TikTok. Liz Pearl is a former head of Team Community in Instagram and now consults with big tech

companies about the creator economy. Kirk Wagner cover social media for US and Kurt I just realized when I read that pun that it ties into Kylie Jenner, who just tweeted or posted on Instagram saying, stop making Instagram look like TikTok. That's right. I actually thought you did that on her because he was talking about that was incredible, totally unplanned. That's right. Kylie Jenner, obviously huge on Instagram, UM said stop trying to make Instagram look like TikTok.

We just want to see, you know, our friends and family on this sap. This is not what this is for. You might remember a few years ago, I believe it was her she tweeted about Snap and the redesign at Snap set the stock down vomiting. That's right, and so she has good timing. I think Facebook's earnings are in two days, UM, so you know she's getting her voice out early. So, Liz, is are all of these efforts by Meta to make Facebook and Instagram more like TikTok?

Is this the right direction or should they be working to differentiate Instagram and Facebook from TikTok? Well? I would say that TikTok is the best place for views and the worst place to build a sustained recurring audience, right, And Instagram's identity for so long was as the place for building a dedicated audience. It wasn't as susceptible to virility or outside forces in general. Right, you can't even

share links on the platform. So if Reels really does go all in for like a TikTok for you page, like feed for you is what we call the TikTok feed um, which essentially devalues followers. I think that's a pretty big departure from the identity wise, and I'm really curious to see how that plays out. So I wonder, Kurt, you know, on that note, it should Instagram be leaning into more of the things that make Instagram great rather

than just some say copy TikTok. Right. Well, on the one hand, that's a way to kind of keep your place in this world, right, if everyone's rushing towards the same spot, uh, you know, they're kind of giving that up. On the other hand, clearly what they're seeing behind the scenes is motivating this, right, And so if your Instagram and Liz would know this you know better than I would.

But if your Instagram and you're seeing people maybe leave or spend more time somewhere else, the reality is Facebook is always just chasing that attention, right, And so that's what's going to happen, but you're right, maybe the long term keeping that foothold kind of with friends and family would be would be a smarter play given that you worked at Instagram for so many years, Liz, is that what's happening internally? Are they watching TikTok and just thinking

about how to keep up? Well, I can't speak to what's happening internally there right now, but it reminds me a bit of Stories Launched to be honest, which I was, which I was there for. I mean, um, you know, people, there's a lot of dialogue around that, people thinking it wasn't going to be successful, and actually there was a huge market for people who are not who that format

was perfect for. But we're not necessarily using Snapchat, and I do think we think of TikTok is pretty ubiquitous, but there is a market for people who love that format and both creating a consuming content in that format who might not necessarily got on TikTok, So there is an opportunity area there. Of course, what is the value proposition to creators at this point? You know, if if you're a creator, where do you decide to invest your

time given the options right now? Really depends on what your goal is and what type of content you want to create. But I do think for younger people in general, like I, I do believe in adapting to what young people want. And you know, mobile video tools, really good

mobile video editing tools. I think it's very TikTok's very underrated for for for the how good they're mobile, easy and good their mobile video editing tools, or when they launched just forced us all like every platform, that sort of up their game there, and that's a net good, right, giving Giving young people the tools that they want and already are using to be able to communicate across more platforms a good thing. I think competition is a really

good thing among social platforms. It might be an unpopular opinion, but it's great for TikTok. I had some competition and Kent. There's obviously a competition for eyeballs and attention, but there's competition for creators. You know, talk to us about how

that competition is playing out. I mean, part of what has made TikTok so successful is the music, which is what these new changes that meta are geared towards, right, and because that drives culture, right, those are the those are the types of songs that people want to see to pair that with your video. But also, I mean, let's be real, this will also comes down to business, right, if you're a creator, where can you not only get the most views, but where you can you monetize those views?

And that's why YouTube has historically been such a great place for creators, better than Facebook for video, because it's easier to make money there. Right, we saw Vine, Vine was great. Vine was TikTok. Before it was TikTok, there wasn't a great way for any creators to make money on Vine, and they went to other places, right, And so I really think it's going to come down to which platform can give people a chance to make a living off. There's a whole graveyard of these social media

platforms there are. Because I wonder what you make of Kylie Jenner's comments, I mean, Kurt brought up I mean the Kylie curse Snap. Some people think Snap has never been the same since what Kylie Jenner said about Snap. But what do you think about this idea that at least one celebrity power user doesn't want Instagram to look more like TikTok and maybe once Instagram to be Instagram.

I mean, I think anybody who's business, which hers largely is an Instagram a way that it wasn't even it wasn't even the same on TikTok is predicated on having this audience that you developed and having followers be really really key in that main feed is going to be resistant to this and it resistant to change in general. Right, those older generations we are this is this is a

play that's really catering. Um, it seems like it's catering for an audience that is that prefers a different format something that I think we're talking about music rights and sound like something that also also another very underrated thing about TikTok when it launched actually as musically Right, which was the first incarnation of TikTok that was really popular with tweens, was how central sound was to the platform, right like music lip sinking the very first foundational communities

and that platform where dancers, and there was like there's no surprise there that was the case. Their biggest stars came out of dancing. And when video became important on Facebook and Instagram, sound sound as a feature, right not

not not the center of their video tools. So I think that's been a defining difference between TikTok and these other platforms, and it's going to be interesting to see phase I hopefully this, you know, the music rights platform will will be expanded to real soon and close that gap a little quickly. Kurt, what is Facebook said in response to the accusations that it's copying rather than developing its own. It's not shy. It's not shy about this.

I spoke to them when they did the news feed changes last week, and you know, I said, like, you know, people are gonna identify that you're Copper and TikTok, you know, and they were kind of like, there, these are good ideas, right, same thing they said when stories came out, they said simply this is this is a good idea. Right. So maybe it's not just who can do it, but who can do it best. We shall see, Okay, Kurt Wagner for Bloomberg. Thank you Liz Pearl, former head of Team

Community at Instagram. Really interesting to have your insider perspective today. Thank you for joining us. Welcome back to Bloomer Technology and Emily Changing in San Francisco. Well, I want to turn out to the booming digital health landscape with summer Health, a pediatric telehealth startup that's aiming to make responses to very common medical questions more accessible through a telehealth platform.

The idea seems to be resonating with investors. The startup just raised a seed round led by Sequoia and Lux Capital. Ellen da Silva, CEO and co founder of summer Health, joins us now. So Ellen talked to us about the idea here the driving premise of summer Health. Yeah, thanks for having me, Emily. The idea of mind summer Health is a very simple one. We believe that all Americans should have a phone number they can text and get an answer um staffed by a doctor within fifteen minutes

for any of their medical needs. This started out of my own needs as a mother. So we're very excited to launch summer Health today. And you're focusing on pediatric care. Why is that? I mean, the idea that I could just reach my pediatration in minutes is totally novel and kind of amazing, But it also seems like a moon shot. Yeah, I mean it sounds like you, as a mother, may have also experienced this. UM. We're starting a pediatrics for many reasons. Two of the primary reasons are that parents

are thirsty to get more medical attention for their children. UM. There is no shortage of parenting questions that come up around health and wellness that parents wish they could ask a pediatrician, But because pediatricians offices tend to be overworked and sometimes unfortunately understaffed, they have nowhere to turn. The second reason is we want to give more access and

resources to pediatricians who want to work more. UM. We have learned through starting Summer Health that one in five medical professionals is planning to leave the industry in the next two years according to the American Medical Association, and anecdotally in pediatrics it's far worse. And so we know that pediatricians are looking for alternate ways to practice medicine. We believe that Summer Health is a great way for them to do so why is that a providers are

leaving and that it's worse among pediatricians. COVID was tough for everyone, most notably physicians. Physicians have been overworked, understaffed, put through the ringer because of COVID. They also have not necessarily benefited from the ability to work from home, the way a lot of other professionals have been able to do, and so many of them are now turning to professions that would allow them to work from home. And in fact, Summer Health you don't even necessarily need

to be face to face with a doctor. Your provider can be at her child soccer game. Um in particular with pediatrics, pediatricians tend to be disproportionately women, who as we know, have been affected by COVID and lack of child care resources. Of them are part time and so look to fill the rest of their time with other pediatric work, and we believe that Summer Health is the best platform for them to do so. Interesting, all right, Ellen to Silva, CEO and co founder of Summer Health.

Really interesting what you are starting, and we'll continue to follow Meantime, Google has confirmed it fired a software engineer who worked on the company's AI team over his public contention that he had conversations with a bot that had become sentient. Yes, he argued that computers have feelings. Google says Blake LeMoyne's comments were wholly unfounded and that he

had shared confidential company information to third parties. Lemoine predicted his own termination in an interview with me last month. I don't think we need to be spending all of our time figuring out whether I'm right about it being a person. We need to start figuring out why Google doesn't care about AI ethics in any kind of meaningful way. Why does it keep firing AI ethicists each time we bring up issues. You can watch that full interview at

Bloomberg dot com. It's also on YouTube. Coming up, with the crypto winter taking hold after a massive crypto sell off prompted by the Celsius tobacco, We're gonna take a look at the future of crypto security with Ledger. Next. This is Bloomberg Time now for our crypto report. With Bitcoin sinking back into the nineteen thousand to twenty two thousand dollar trading range and analysts expecting more swings ahead of another federate HiPE. Question, everyone is wondering has bitcoin

found its floor yet? Our own crypto Contributortionale Bossi has been investigating that very question for Snelling. What are we thinking? So it's interesting, family. You did see last week bitcoin flip up past twenty three thousand, and it has come back down. It hasn't had several days here of muted price pressure, and to your point, it has some catalysts ahead that could make the ride ahead a little bit rocky. But again, that dollar range has everyone wondering, is the

leverage completely out of the system. See if you take a look there, Yes, we've had that pressure on pricing, but over the last seven days you are still seeing bitcoin trading higher than it was seven days ago. I also want to show you a quick chart of ethereum because even though you're seeing a bigger decline over twenty four hours, and ethereum than you are seeing in Bitcoin also up over the last seven days, as there is

some excitement about ethereum and around bitcoin. For ethereum, of course, there's that merge date on the table now. And does that excitement hold and does it push the prices back up even in the face of all these uncertainties of the big question. And one more time, is that leverage out of the system? Indeed? All right, well, we're gonna

explore this a little bit more. Our next guest has his own read on this, and that is Ian Rodgers, chief experience officer at Ledger, a platform that provides hardware wallets for securing crypto assets. We're gonna get into crypto security in a moment, but first I just want to get your read on the winter uh Ian as it were. I mean, do you think bitcoin has hit the floor? Is it only up from here or what we saw

over the last couple of weeks just ahead? Fake You know, I don't think any of us know exactly what happens in the short term. I mean, for us, it's a it's a really long term bet on digital assets overall. I think, you know, from our perspective, you have this new human invention um and it's definitely going to have a massive effect on humanity. So how what's the what's the arc of that one of the ups and downs?

You know, very difficult to say, but you know, for me, having lived through, you know, the the dot com bubble, you know this is this is like asking, you know, what was it going on at that moment in time when you know the market had crashed, but you know, the Internet was was inevitably and unquestionably you know, going to have a massive impact of humanity. Now, you can talk about bitcoin all day to that end, but what about everything else? What about the n f T landscape,

what about Web three? Overall? How are you preparing for what the industry might look like coming out of this crypto winter. Well, just today at Ledger we launched Ledger Market. That was five and a half hours ago, and we've done three million dollars in business UM in the last five and a half hours. UM. So I think, you know, again, we're going through this once in a humanity digitization of

everything UM. And I think if you, if you fast forward fifteen and twenty years from now, you know, your passport is a digital document that is issued to your digital wallet. And the way that you, you know, prove you are who you say you are, is you prove that you are the owner of the wallet containing that document. I mean, that's the scale of what we're talking about here.

I think it's very difficult to pick winners and losers, just like in the late nineties or two thousand two two, it was very difficult to pick winners and losers, but you could bet on the Internet long term. And from my perspective, if you can bet on digital assets, UM, security and self custody as as things that are there there, these are these are long term and if you have a portfolio UM that's focused on those things, it's likely

to return over time. You're talking about self custody and storing at your own crypto here, what has this moment in the industry taught people about ownership of crypto assets themselves and the difficulties in doing so, especially as you see so many exchanges really show you that they own

the crypto that you think you own. It's a great question because I think, unfortunately people are you know, keep equating the bankruptcy of you know, Celsius and Voyage or with um, you know, with crypto overall, which is like equating you know, Bernie made off with the stock uh, you know, with with the stock industry overall. I mean, it's it doesn't make any sense, you know. I think what unfortunately it's done the hard way is it's taught people what people in the crypto industry have known for

a long time, not your keys, not your coins. And that is one of the great inventions here is that you can actually hold onto your own assets so that a run on the bank is impossible. But unfortunately, if you just kind of go, you know, into a system where you know, you give somebody else your money and you ask them to manage it for you, well, you know, I'll all kinds of things can happen from that moment.

And you're a former Apple Music executive, you worked at Beats, and I'm so curious what the relationship is between what you see as the potential relationship between music and crypto. Are there any lessons that you learned in your former life that you're applying to crypto security? But definitely, you know, I left college in go On toward the Best Boys, and then I was at at Beat. I worked with UM the great talented team at lbm H the last

five years. And even though my background is computer science, if I had learned nothing about marketing with those geniuses, then you know, I'd be pretty stupid. So I think one is just how do we, you know, take a brand like this and bring it into culture and and that's that's one of the things, UM, that we're trying

to do. But with respect the music specifically, I mean music is already you know, ninety nine digital, and I think that the Internet brought us this revolution of information, and what we're going through now is a revolution of value. So given that that music is on some level information, it's kind of already been set free and digitized. UM, you know, but to the degree that as you can see,

I'm I'm a record collector. You know, those are that those are collectibles, and those will have you know, kind of different levels of utility. I think what happens over the next year is you get these these applications that in some ways resemble my Space. You know, my Space was early, it was messy, old, people didn't understand it

at first. Um, but people will use it as a way to showcase their digital belongings, and then those digital belongings will get them access to other parts of the world. You know. Imagine that I buy that Louis Batan handbag, it gives me a token. With that token, I can get into Louis Baitan world, and I'm not waiting on the street and line anymore. UM. This is the kind of thing that this combination of kind of digital and physical is is going to bring to us digital and

physical ownership. That is so, since we've gotten your thoughts on the crypto industry, I'm curious for your thoughts on the evolution of the music industry. Earlier in the show, we were recovering um Facebook offering new tools to creators who want to make licensed videos with licensed music in them. Obviously, TikTok has totally kind of reinvented this category of social media videos to musical tracks. You know, what do you what do you see as the evolution of music combined

with social media? Well, I mean I think what's what I've always said is whether when I was at lvm AGE it was the same as when I was in the music business in that we sold culture as a

prerequisite to selling product. Right when people are buying music, Um, you know, even when they were buying compact discs, you weren't buying you know, a compact disc you were buying you know, when a when a teenager was buying an Eminem c D, they were buying you know what Eminem means to them, right, And I think it's the same when somebody buys a d R handbag. Do your means something in culture? Therefore, you know you purchased the product.

So now that we've had this revolution of information with the Internet, um, you know, information is free and someone in a small town in Indiana where I grew up has the same access to culture that someone in New York or London or Paris or Tokyo does. Um. I think that's what's completely revolutionized, you know, and I think you know math, you know, largely it's moved us kind of away from these mass media sources and into kind of tribes and clicks. We all feel that, you know,

coming out of out of the pandemic. But but that of course affects, you know, it affects everything, including including music. Music is it's not just sonic, it's a way of belonging. That's kind of beautiful in Rogers, appreciate you taking a swing at that with us chief experience officer at Ledger,

along with our very own Shinelle boss. Thank you. The market downturn has hit the U S economy hard, but it hit San Francisco's economy particularly hard, with local giants like Apple and Google planning to slow hiring and more tech workers working from home permanently. The tech sector that supercharged the Bay Area economy is now leaving a vacuum in Silicon Valley. Bloomers, Rolling of our Geese joins us now to discuss roll. You've got a big piece out

on this now. Why does it seem like San Francisco has been hit harder than other US cities? Absolutely, San Francisco has been hit really hard, and that's because so much of our economy is revolves around tech, and unlike in New York, which is very finance dominated, tech companies here have really embraced remote work policies. So that means you have fewer employees taking transit, peer employees going to restaurants, fewer employees taking um, you know, going and shopping and

supporting the economy that San Francisto depends on. And meanwhile, you have a lack of international tourists and international terms has not rebounded to the levels pre pandemic. So all in all, that means that the recovery here in San Francisco is trailing down many major US cities, and you're seeing more and more companies offer more and more remote work options. So I wonder if we can't depend on tech to revive the city, and if not, what can

the city do to revive itself. The city is making its biggest push yet to revital revitalize downtown and to give office workers a reason to go downtown. So they are going to emphasize let's take this vacant commercial space and have festivals and markets so that employee would think, well, yeah, maybe I will go into the office today because I can do something cool after work. Their hope is to get workers consistently going into the office three days a week.

That would be a huge help to the local economy. Is there any hope that the tech scene could come back to the rescue. I think that they are really working on making the city seem safe and secure, and that's why they had these so called ambassadors around transit stations and major tourist sized cable cars to make it seem like, no, you can come to the office. It's

it'll be fun. And if they can get tech workers and other people to mostly tech workers, to come three days a week, that would be a huge benefit to the city. You know, it wasn't long ago that I saw a raccoon walking down the sidewalk in the middle of San Francisco at eleven a M. Romy eleven a m. There was a raccoon on the That's what this has come to, all right, Um, well, great piece by you today.

You can catch it at bloomberg dot com on how San Francisco is dealing with this Bloomber's roomy Mark Varghese, thank you for joining us. That does it for this edition of Bloomberg Technology. This week we are all over earnings. Join us tomorrow. We've been breaking down alphabet results along with Microsoft. You don't want to miss that, and of course check out our podcast as always, wherever you get your podcast time. Emily Chang in the beautiful city of San Francisco is Bloomberg