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Coming up, we'll have full coverage on the aftermath the attack on former President Donald Trump.
That says the RNC kicks off in Milwaukee.
And we'll turn our attention to M and A.
It's Google Eyes Whiz for its biggest ever acquisition.
Plus we bring you the latest on Apple as shares hit a record high. For now, look, let's go on the ground to Milwaukee where former President Trump, we understand has arrived for the Republican National Convention joining us now in most Kayley lines, a lot of breaking news to continue to digest.
Kayley, Yeah, there is, of course, the utmost being what happened over the weekend at Israelly in Pennsylvania, in which the president was shot former president in the right year, obviously an attash assassination attempt that he survived, but very much changes the tenor of what is going down in
Milwaukee this week. There is an incredibly intense security. Donald Trump himself admitted that he was considering postponing his trip here, but did indeed come early, in fact, yesterday afternoon, and is preparing, we understand according to an interview he just gave to Fox News to announce his vice presidential pick today.
But of course the news does not stop there. We learned just this morning that the judge in the criminal case brought against him in Florida, the Document's case, a judge appointed by him, Eiland Cannon, has now completely dismissed that case against him on the grounds and the appointment of special counsel Jack Smith, who of course brought that case was unconstitutional. Essentially went around Congress, is what the judge has ruled here. Obviously, there is room for an appeal.
The Justice Department is probably likely to do so. But that's just another piece of news that works in the former president's favor. As the proceedings at the convention here get underway in Milwaukee.
Later in the program, Kelly, We're going to discuss some of the big names from the technology world who have either come out and endorse President Trump following the events of the weekend, or weighed in frankly over what happened. The other story, of course, is the response from President Biden. What is that playing out like in the news cycle where you are.
Well, The President clearly is still trying to keep himself in the news cycle.
Ed.
We have heard from him addressing cameras three times since that shooting on Saturday. He of course first made remarks
from Delaware the same day that it happened. He gave brief remarks to the press in the early hours Sunday rather, and then of course gave that Oval Office address at primetime eight pm Eastern last night, basically calling for unity, calling on Americans to turn down the temperature, tone down some of the rhetoric in the aftermath of what he said is something that shouldn't be taking place in America,
political violence. He said that there is no place for it in this country, even as he was giving that speech, not just as a president, but a presidential candidate who was running against the very man who, of course was shot at a rally on Saturday during the usual course of the democratic process. So we're likely to see a tone shift to from the Biden campaign, who have pulled down their advertisements in the aftermath of this assassination.
Attempt.
They're probably going to be retooling their messaging. And Donald Trump, we understand is as well. He of course will be addressing the convention on Thursday evening, and an interview to the Washington Examiner after the shooting, he said he is reworking that speech. He said it was going to be a humdigger and dinger, and now he's going to be used as an opportunity to call for national unity.
Bloombo's Katie Lyons in Milwaukee, thank you. Meanwhile, we want to hone in now on social media and disinformation online following the attack on President Trump. We heard earlier today from former National Security Advisors to the US John Bolton on the attack, but also on how conspiracy theories will remain in its way.
We need to do the review of this in a calm way.
I think do it.
Quickly as well, because there are already conspiracy theories about what happened on Saturday that I think are learning tunes. But I don't think they're going to go away until we have an independent objective review.
I want to bring in Bloomberg's Davy Alba, who was on duty this weekend, and Davey, you wrote a really important report Saturday into Sunday about how quickly misinformation spread on key social media platforms, in particular, X, just summarize your reporting for us.
Yeah.
Absolutely.
I mean this is kind of to be expected after any major news event that there will be information flying from all sides as the facts become clear. But the thing that we've seen over and over at this point is that people are all too willing to share conspiracy theories as well.
About what actually happened.
I think there was an advantage in this particular moment.
That there were live cameras and so.
Much documentation of what actually happened when the president was shot in the ear to the former president, I should say, However, you know that didn't stop some others from spreading unfounded narratives, such as, you know, some actual people who have hold elected office who said that President Biden ordered the shooting.
There were rumors flying about the identity of the shooter that were completely unconfirmed, but people were pointing figures at specific individuals, And there were also tons of rumors about this event being staged when there is no evidence that.
I just want to hone in on that fact because your story really brings it to light Davy. Ultimately, these aren't just average uses social media. These are sitting law makers, these are elected officials, and I want to understand how much more complex that makes the role of social media.
Yes, that's a really great question, and I think what comes into play here is that we've seen content moderation
efforts over the past year get weakened. You know, the idea that social media platforms are in a position of basically deciding what speech can remain up and what should be taken down is something that was very controversial over the past few years and really took root I think this year with many Republicans sort of saying that there are these social media platforms are in a position of censoring speech. So I think the platforms are in a tough.
Position right now. You know, they have.
To make these calls about whether someone who actually holds elected office can continue to post essentially whatever they want, or if the speech is so false that, you know, the facts simply don't bear the out, do they do something about it? And I think that the answer in this presidential election cycle is still not clear, and these companies continued to be in a tough place.
Devi Alba brilliant reporting.
We thank you working throughout the weekend, but we can now talk about someone who has deep experience what it's like to work within one of those social media platforms and indeed has a bird's eye perspective of it. Now, Kara Frederick's with us from the Heritage Foundation research and educational institution with air mission to promote conservative public policies. Kara, you served as director of the Tech Policy Center, with research focusing on big tech emerging technology policy. What's so
fascinating is your prioral at Facebook as well. Facebook's Global Security counter Terrorism Analysis program.
You helped create it, you lead it.
Give us the sense of what ultimately the social media platforms are doing right now to respond to the weekend, Well.
It's a farcrive from what I used to do starting in twenty sixteen, where we were essentially building an airplane in midflight. So what happens in a situation like this. I was specifically devoted to foreign Islamist terrorism, so it was a very different animal. But at the same time, what all of these teams are working together with it and companies are doing. They're working with their community operations teams, they're working with their engineers, usually the trust and safety engineers.
They're working with their policy teams, they're working with people in global security, like the team that I led, and they're trying to identify if the attacker, attacker was on the platform, if he has active accounts, if he was ever on the platform, if he posted anything.
They're trying to potentially.
Take down some of that information for so the public can't necessarily see it and instigate copycat attacks and whatnot.
But ultimately they.
Are trying to identify the perpetrator in the minutes after those attacks that happened and get them off the platform. The whole mo of these teams is to make the platform hostile to these types of actors, and that's what they're going to be doing in the moments after an attack breaks on the news.
Like this, Cura, good morning, and thank you for coming on Bloombay Technology. I'd like to just focus on what happened the last forty eight hours, the social media discussion immediately following the attack on former President Trump, but also the sort of continued sharing of content. And one thing that I noticed or I reflect on, is how many people discussing the platform X and how they were pleased
basically to be able to get information so quickly. But as Davies just pointed out in her reporting, within the stuff shared on x much of it was misinformation.
It was false.
How do you balance speed of access to information to the check that you have to get it right.
It is a very, very difficult question.
And my best advice, having been a camera terrorism analysts for the Department of Defense for six years and then having worked in counter terrorism at the platform level at a big tech company, is to wait to be very prudent about number one even identifying the attacker. We knew in the couple minutes after this there were different pictures of who it could have potentially been floating around on social media.
They were wrong. There are other pictures they were wrong.
So I think the act of prudence in this case is to wait to try to get the full picture.
And you know what's really interesting too.
Is there is a cohort of open source analysts who are digging through a lot of these information.
They're working many times on their own.
They were not necessarily employed by these big tech companies. They're not even vendors or contracted out, but they're digging through a lot of the information. They're putting the pieces together. But my advice to everyone, just people that are looking at vowyeers, just wait the full story eventually comes out.
But in terms of waiting, the scales in either way, I think big tech platforms have to do a much better job of showing that they are more neutral arbiters of information, because, as the Bloomberg reporter said, prior to this, you know, tech has been under a microscope because they haven't gotten so many of the calls. Right look at the Hunter Biden laptop story when Twitter was breaking the links to the dms for that legitimate story in the twenty twenty campaign. So big tech has a lot of
making up to do when it comes to this. They don't have the trust of the people, and I would say rightly.
So it was interesting that ahead of all of this, Meta did, indeed as it had said it would do, lift all restrictions on Trump's accounts ahead of the US election, and it was understood car and I'm interested is as we do try and gain trust, it's also at a time where we've got artificial intelligence and technology working against us in terms of really understanding the true nature of things. How much is that making life ever more difficult.
I think it's exacerbating it to the nth degree. I mean, you look at AI, and I'm a big fan of AI. I'm a big fan and pro innovation. When it comes to open sourcing these models and these AI tools, I think that's going to take us farther than our foreign adversary counterparts who are working on more closed models of these large language models, et cetera, et cetera. So I am a big fan of AI. I want to get that out front. But as we say in the tech community,
if you build it, they will come. Bad actors are always going to co opt technology that outpaces attempts to govern it. This technology is developing even more rapidly than I even foresaw when I was working with it in twenty seventeen and then researching it in twenty eighteen. Now we were talking of an AI winter back then another AI winter, and yet with the explosion of GPT four
now called chat GPT. I mean it looks like these technologies because they can tailor information, amplify information, and do all of this at machine speed and scale. That's the kicker, machine speed and scale. We are going to see a world of synthetic media, where the truth is going to be harder and harder to discern, and that puts a lot of onus on the platform to get it right.
At the abset car, we have a question from one of our audience members, which is how much of Project twenty twenty five will actually make it into the GOP platform. But let's answer that in the lens of technology, please.
Yeah. So we don't know what's in Trump's mind or Trump's campaign's mind, but we do know what the platform has said. The platform is pro crypto, the platform is pro AI development, and the platform.
Is pro space.
So I think when it comes to what the Trump campaign and potential Trump presidency, second Trump presidency is going to do, I don't speak for them, but it looks like they're trying to paint an affirmative agenda, an affirmative vision of the things that they are for when it comes to technology, rather than the things that they are against.
So I would expect a lot of.
Pro innovation to take place under a potential second Trump presidency.
An extraordinary voice to have join us today.
Frederick Tech Policy Center, Director at the Heritage Foundation and decent Experience, having worked at Facebook, and indeed in counter terrorism.
We thank you.
Let's keep talking about the Trump trade that's kind of intensified following the events of the last forty eight hours. We spoke about DJT, but crypto related names, not just coinbases is sort of exchanged, but some of the miners also doing well. The idea being that Trump had been scheduled to speak at crypto events. He's seen as the more crypto friendly of the two candidates. I'd also point out, Caro, there are other stocks in other areas moving to the upside on the same logic, and.
Certainly it's not only crypto names that are moving today. Investors reassessing assets across the board. Ed the price in what a Trump win in November really does mean across asset classes with us to regul all down bluemgs just mentu Shanali Bassek No, we can talk crypto more Volueishnati, but just dig into some of the industry utes power the S and P five hundred thirty eighth record.
That's right.
So of course ED just brought up crypto related stocks. So if you look at the bitwise ETF that tracks those crypto stocks, which I know SHNAI is going to get more to the bitcoin side of things, but of course that houses stocks like if you're looking at Marathon Digital right platforms, Coinbase. We did see a pop in that today because if you're thinking about President Trump, who has been very pro a crypto exposure and things like that, you're seeing a pop there.
But then also beyond just that too, if you're looking at.
Maybe more regulated type sectors with financials as well as healthcare. Those are two key areas to watch as far as what that means, because usually if there's say a Republican potential sweep there, that would be more easy policy toward. When you're looking at banks and financials, and then as well as the healthcare side of things, especially those insurers. If you're thinking about CBS obviously owns Etna, and then obviously when you think about other insurers like that too,
those are some industries keeping a close eye on. And then also when it comes to fossil fuels, but then we're renewable energy or solar stocks too because those have been more prominent and gotten a support under a democratic presidency. But if you're thinking about sun solar sunrun in stocks like that, that's something to watch too, because they could have potentially more restrictions. There thing's going undone if there is a Republican president.
Well, the exception is that rule probably Tesla that's up almost six percent in a bit of a Trump Shinali. The macro view here is that the market's trying to assess who's going to be president and by extension, what policy will be to various parts of the economy and different industry groups.
Yeah, let's take a look across what that means across asset classes, because of course it is of course impacting the stock market and certain sectors, as Jess was saying, energy, financials, places that Trump would be expected to have a massive mark on policy. But then also you're seeing a really big move here, as we've been saying, in bitcoin, of roughly ten percent or more since Friday.
It ended well below.
Sixty thousand, closer to fifty seven thousand on Friday, and now you're watching it surge past sixty three thousand. Remember, Trump is largely seen as more of a pro crypto candidate, bitcoins not alone. You see the dollar also rising as well, because you are watching this expectation that in a Trump administration, what you would have as the odds rise. Is of course that tariff policy and therefore potentially a stronger dollar.
I would also add point to the curve steepener. When you think about the bond market, it's not the front end of the curve really that's moving. It's the tail end of the curve. You're seeing a bigger sell off. Think here, taxes being looser in the future, potentially think here this idea that you might have a more of a fiscal burden on the United States. Of course, you're
seeing that thirty year really sell off. Briefly today you've seen that two thirty curve disinvert and steepen, and of course that is that short end staying flat and that sell off in the long end starting to be pronounced. There are a lot of factors under the surface here, but just significantly many asset classes really moving into today.
Perfect summary from Shananibase and just Ment.
Google parent Alphabets in talks to acqui cyber security startup Whiz, according to a source, a deal that may be worth as much as twenty three billion dollars, which would make it the tech giant's largest acquisition to date. Bloomberg's mark Bergen's here from London. Give me the rest of the details. This was a surprise.
It was a surprise, although if you're following Google and their cloud market over the past maybe five years, it's not their last big acquisition. Mandient in similar space cybersecurity slider right under Google Cloud.
Looks like they're trying to do it again.
This is something where you know they have been this sort of perpetual third place in the market behind aws in Microsoft. Microsoft in particular has been really pushing the album up on cybersecurity, making that the case that sort of that's their advantage Azure. But at the same time Microsoft has some pretty noticeable and public flaws and the mistakes around cybersecurity that Google, I think is trying to exploit.
So it is an aberration in the sense that it's the biggest deal by a long measure in something where Google has stayed away from deals for anti trust reasons lately.
Some vcs could be making a sizable return and recent Lightspeed Ventures Thrive Capital in the latest round. We understand of wiz, but is that regulatory risk ki Mark.
So for sure is that this company's started in twenty twenty, so it's remarkable this twenty three billion would be almost twice its last valuation, so it's a pretty massive returns. I think the argument that Google's going to make. I won't speak for the FTC and the TJ on this, but the argument that Google's going to make is we are not in any way monopoly in the cloud market. But the Google will cite that they're in third position. That Mandy a deal I believe was about five billion.
That one cleared. I don't expect Whiz will be approved on day two. These things typically take some time if it goes through, but it's you know, Microsoft is clearly has some issues around around the anti trust, so you can't rule that out. But I think Google's case is going to be in this market, we are far from the market leader and far from a monopoly.
And as we know, the agreement hasn't been reached and talks could still end without one. But for now, interesting to talk with the Matt Bergen. We really appreciate it.
Welcome back to Bloomberg Technology. Ed Lovelow here in San Francisco, Caroline hid in New York.
An interesting one in Tesla more than five percent higher. It's got a solar business, a sizable one.
Ed.
It is like the name that encapsulates green policy. But it is also of course perhaps a Trump trade here with Elon Musk going in Previously, we understood the reporting happening on the weekend, Ed that indeed we saw being backed by Trump is Elon Musk.
Max Traffckin is here to discuss a little bit more. But Ed, can you just dwell on the fact that.
Almost before occurred this weekend an extraordinary set of circumstances in Pennsylvania.
We had reporting that indeed.
Elon Musk was going to be supporting a super pac.
Correct.
So Musk made this public endorsement following the assassination tempt on former President Trump. But late Friday night, and you may have missed it, Bloomberg reported, citing sources, that Musk had made what we're characterizing as a sizeable donation to a low profile organization called the America Pack, which is actually due to to do disclose its funding today July fifteenth. So depending on the timing of when Musk made that donation,
we will get some more information about it. But let's bring in bloombergs Max Chafkin, because I find this really interesting, you know, the history of Musk's relationship with former President Trump. Maybe it doesn't matter now he's endorsed Trump publicly through the platform X.
Yeah, absolutely.
I mean Elon Musk in twenty sixteen did kind of start to drift towards Trump. Mean, he was initially on a couple of these executive councils and then broke with the former president over the Paris Climate Accord. But what we've seen over the last five or so years is a thawing of those relations. Even as they've insulted each other, you know, often publicly, there has been a cooling and definitely an ideological convergence.
When you look at sort of what.
Elon Musk is saying on his you know, ex page and what the former president is saying on the campaign trail, there are a lot of commonalities. And on top of that, of course, Elon Musk has what I'd say is a pretty bad relationship with the Biden administration. Right you have multiple federal agencies investigating various aspects of his business. Elon Musk has had all sorts of extremely negative things to
say about the current president. So you can see a lot of reasons why they would be able to find common ground. And of course, until recently President Trump's former President Trump's finances have started to look a lot better, but until recently he really needed money. So they both kind of need each other.
And I think that's what we're seeing when you go to the Elil Musk needing each other, needing Trump or indeed anyone who's in the White House. Remind us of the government contracts that Elol Musk basically sits a top of.
Yeah, so Elon Musk is I mean, of course, he is known as an innovator, but he's also been a very successful government contractor. You know, many of his businesses, most of much of his business depends on relationships with the government, either in terms of direct contracts with SpaceX or Tesla of course depends on these text credits and has for the entirety of its existence. So you can sort of see why he has an interest. And of
course he's got a lot more planned right. SpaceX is hoping to go to Mars, wants to be involved with that. And if you look at the GOP platform, which we're going to see at the convention, it does bring up commercial space Mars, it brings up AI, the fears of sort of the wokeness in AI or it implies that, which is another pet elon Musk issue. On the other hand, President Forum President Trump has said very negative things about the EV industries, so there is potential tension there as well.
Max I wrote in my hyperdrive Newslader last week about the idea of what happens to public funding or IRA funds in the event of ivor White House. And no one I've spoken to would say if Trump wins the presidency that would just go away. But I just wanted to remind our audience of the New York Times reporting from earlier this year that Trump met with oil executives and basically said, if you help fund my campaign, I will be, let's say, less supportive of evs.
So then we bring in Musk.
It doesn't really add up Trump's sort of historic attitude towards electric vehicles and Musk and Tesla is the market incumbent, the company that paved the way for electrification.
Yeah, it's hard to know how to parse that, And of course what Canada's say on the campaign trail is necessarily what ends up happening.
From the sort of Musk point of view. Two points one.
Is that I think Trump making those comments and then those comments leaking could be read as a sort of blink read you know, orange light for somebody like Elon Musk to donate.
It will be.
Interesting to see if President Trump foreign President Trump softens his attitude to the EV industry. The second thing is that Tesla is the market leader. It doesn't necessarily hurt the company if if the Trump, if a hypothetical second Trump presidency, you know, kind of cracks down on the EV industry or gets rid of a lot of subsidies, it might even just sort of lock in Tesla's position. Now that's not something you want to hear if your interest is in growing the EV industry in a big way.
But it's not clear that that's even Musk's goal at this point.
Max Tefkin's written so much care about the history of mask and politics. We just showed that graphic of some of the other names over the weekend that publicly endorsed officially endorsed President Trump, and for me, this is a big story. Cara, I find it so interesting.
Notable that people are now willingly taking to social platforms, many of them will a prevalent user of etel musk Sex as well. To make these sorts of endorsements and statements, it has to be reflected, and of course many CEOs within technology were coming out and condemning the violence that we saw this weekend as well, and using social platforms
of which to do that. But Max just the last take on ultimately, whether we see more money weighing in here and any clarity on the extent that we hear of DA must support.
You know, Silicon Valley entrepreneurs and CEOs and investors they want to back winner. So I don't think it's totally surprising. You know, even before this assassination attempt, Trump had had a very good couple of weeks. So I don't think it's surprising that we're seeing the corporate money flow in because that the way these guys think, right is they want a voice in whichever they judge to be the
likely winner. So I think that's part of what's going on, And it would not surprise me if we see more money from Silicon Valley, and in fact we could see you one must take a potentially active role here, either you know, just on his X platform or with you know, further donations we'll see, But nothing would supper at this point as far as Mask and Trump coming closer together, nice chef can.
The perfect voice and all things in learning, we appreciate it. Coming up, we're going to be talking to a CEO about a further integration in AI. Tell Tom Sebel, founder and CEO of C three AI a partnership with Google Cloud. This has been by technology. We want to talk about AI partnerships. Another one being announced. Tom Sebel of C
three AI the CEO there to talk us through. What is your partnership with Google Cloud, the launcher new AI programs and most notably AI for government programs AI, Generative AI. We're talking here, Tom, can you just stick into what has driven this partnership with Google Cloud ultimately how it enables you to serve with government and consumers that little bit more.
Google Cloud has been a great partner and we've been working with them at massive scale in state local government, Okay to bring solutions there associated with property appraition that will associate with law enforcement, and now in state government and federal government. We've come up with a very unique solution utilizing generative AI to make all the complexities associated with things like the Affordable Care Act okay, and all of the services that come out of health and human
services of medicare Medicaid CMS. What have you immediately.
Accessible to the public.
We've solved all the difficult problems associated with data expiltration, cybersecurity, hallucination, those are gone, and now we deal with these you know, these programs that are biblically in scale, in the complexity, and you can ask any question in one hundred and thirty three languages and get the answer immediately, the correct answer the first time in the language that you inquired.
So it's really it makes it so that governments can provide better services at lower cost into more certified constituents.
And indeed government has been a real strength of C three AI. What's also notable is well the fact that you're teaming with Google's cloud.
Here.
Many might say that actually Microsoft as you and Amazon AWS, well, Amazon will broadly these hyperscalers might be your own competition.
Do you have to do the deal for infrastructure with Google?
These are all partners. Microsoft is a great partner. AWS is a great partner. We do a ton of work in the defense and intelligence community with AWS. But let's remember, I know that people like to focus on the defense and intelligence community. You know, it's roughly twenty percent of
the federal budget. You know, most of the budget. Is it benefits programs, social security, health, insurance, retirement programs, and we can use generative AI to allow government to provide you know, much higher service requiality services at lower cost. This applies not only in the United States. I mean, this applies to the National Health Service of the UK. This applies to have a sight.
Let me jump in here for a second.
I think that Tom may have some zoom issues, which we forget is kind of normal in the day and age that we live in. I mean, when we get him back and we'll work on that car, I think what I want to ask him and understand is like, is this a vote of confidence in C three AI being a technology provider? In other words, Google Cloud are like they're quite good. So, mister Cebo, I think you're back with us. Thank you for joining us on bloombow technology. Okay,
so let me give that question to you. Is this a sales channel thing where you guys can go to a certain customer demographic or is this Google Cloud saying actually C three AI has really got something here from a product level that we don't have.
Well, this is a deep technology partnership. We've been working with Google Cloud very closely for years. Surely a deep technology partnership. Take advantage of the important work they're doing with Generative AI and Gemini and make that, you know, more accessible using the C three AI platform, which represents I don't know, two or three billion dollars for the software engineering. So this is a technology partnership that goes
back some years, and we are partnering technologically. Yes, we are jointly developing, and yes, we are jointly servicing and selling and servicing customers all around the world.
Mister Cebel.
One story recovered earlier in the program was reporting that Alphabet or Google are looking at wiz in the m and a context you've just partnered with them. It's interesting to consider the antitrust repercussions of that. But have you seen the report and what do you make of that?
Well? I think that you know, I mean, one of the existential threats that we have to the world relates to cybersecurity, and I think that any one of these hyperscalers that are beefing up their their cybersecurity capabilities makes the world a safer place, So I think it's a good thing.
Tom c Will can't even get onto your thoughts of AI in the world of fake news. It's something that I know that you've been thinking a lot about. We look forward to having you back on the show. Tom Cewill, founder and CEO of C three AI, on that partnership with Google and what are you looking at now?
Some of the other news stories today in Talking Tech. First up, AutoNation warns of a big hit to second quarter earnings. The US car dealership chain says profits could be lower by a dollar fifty as shared this after a cyber attack left the auto retail industry crippled for weeks earlier this month. AutoNation says it does not expect to the attack to have a material impact on its financial conditions going forward. Plus, smartphone shipments are on the rise.
That's according to IDC. Global smartphone shipments rows six point five percent in the latest quarter. Apple iPhone shipments stabilized with forty five point two million handset ship The rise comes as smartphone makers including waway In's Roalm, slash prices in China to entice consumers in the biggest mobile market, and Finally, spending on Korean cultural products is forecast is nearly double to one hundred and forty three billion dollars
by twenty thirty. That's according to new research release by TikTok and analytics company Kantar. The sry popularity of the k culture products sought an amplificator by social media, which has become gathering place for K pop fans who are online.
Caroy staying in Asia.
Panasonic CEO Yuki Kasumi spoke to UMG Ryan in Tokyo about the need for company managers to feel more of a sense of crisis given a low profitability. Kasumi also discussed the outlook for Panasonics EE battery business.
Just take a listen my key.
You can't do me.
You are in terms of the sense of crisis, we have not fulfilled our commitments and improved our earnings. As a result, the group as a whole has not achieved a level of profits that meets expectations of investors. This has led to a slump in the stock price. Has also led to the price to book ratio falling below one. I would like to emphasize that all of our management team must recognize that this is a critical situation and we must manage our businesses accordingly.
The Evy battery business has been a focus for you, but that's been really affected by external demand.
Right.
When are you expecting to see a turnaround? And do you see any positive signals coming from your strategic partner, Tessa.
When we start supplying batteries to for example, Mazda and Superu, our plant in Japan will be in full operation as well as in the US. We will continue to expand our business in the US, and we will follow the demand of US automakers and invest according to the growth of that demand. So in that sense, we will make our investments in such a way that the plants will not be forced to stop operating.
Ayonna, what can you tell us then about the US demand outlook, especially because you've been doing pretty well in your business there. But it's also because of the Inflation Reduction Act, Right, And I wonder what are your calculations of what happens after the presidential elections if the incentives are taken away?
Well, I have heard that the IRA will not disappear immediately if Trump becomes president because of the way the US legal system works. This means that it will take a few more years. The spread of EVS is expected to slow down not only because of the IRA, but also because the charging infrastructure is not yet sufficient, and I think there are other reasons as well. One reason is that evs are expensive even with the IRA, and as these issues are resolved, the spread of evs is
expected to increase in the long term. We will invest accordingly and will manage our business in such a way that the speed of EV A DOT will not directly affect our business condition.
Are you expecting to see more price competition though in the EV battery market, especially from the likes of giants like China Coatl for example. Will you need to readjust your cost structure.
There are different types of batteries that can be used in cars that prioritize price and sacrifice some performance, and those are thoroughly pursued performance and safety. Although there is price competition, we will continue to supply equipment and vehicle makers that recognize the quality of our batteries.
That was Bloomberg's Sherry Arms speaking to Panasonic CEO Yuki Kasumi in Tokyo Bazu in on Apple The stock hit fresh record highs today after an upgrade to buy at Loop Capital on the iPhone's AI potential. Morgan Stanley's also did the iPhone maker so its top pick list, with AI also being seen as a catalyst.
Caroc Yeah, and I think we need to stick with AI. But also revenue being generated internationally. Look in India, where Bloomberg is reporting that Apple's revenue has searched thirty three percent in the twelve months through March.
According to a Bloomberg.
Source, sales during the period were eight billion dollars, up from six billion a year ago. Stuff into it, An rag Rana of Bloomberg Intelligence, a lot of buoyancy around this name today, Ana Ragan, what do you make of the Indian sales?
Yeah, you know, Caroline, I'm in your camp.
I think the sales pushed from India and China are far more important than my view in the you.
Know, both in the short run in the long run, than than AI.
But you know, very very happy to see that India is a very big market for Apple.
I mean, the end market is over six hundred million.
Smartphones and Apple has you know, less than five percent market shared. So over the long term, I think India is going to be a very exciting story for Apple, but it's going to take some time because currently China is eight times bigger than India.
In terms of units smartphones or iPhones.
So China still is the main story at this point over the next two to three years.
But I think India is very exciting for the longer future of Apple.
So it might be like early days.
But one interesting point of the reporting from Bloomberg was that of that eight billion dollar figure, more than half was iPhone sales rather than other devices or services.
How do you have to play.
The Indian market differently, like in terms of asps or your patients for a growing or emerging middle class.
Yeah, so you know, Apple can truly gain a lot of market share in India by you know, let's say listening the price of their lower end model.
But they don't really, you know, play that game.
They are all about, you know, the margins, and you know, they don't play the market share game, so we don't see them launching a cheaper phone or anything. I think Indian market is going to be gradual. I mean gradually, And I say when I compared in China, China is Apple market shared in the Chinese market is twenty percent and in India it's less than five.
So you over time, as the Indian consumer becomes.
More affluent, when purchasing Baba becomes you better than what it is right now. We think Apple is one area where they'll gravitate to because of the luxury nature of the product, because of the brand that's associated with the quality it's associated with, and then the prestige.
And Agrana breaking down the international growth. It is a new record high for Apple today. We thank you meanwhile that does it for this addition of Bluemog technology. And it has been quite the show to be digesting.
Yeah, and it's going to be a really big week in America. You know, our colleagues will continue to broadcast from a Walkery and R and C. And here there are so many technology stories to tell recap on the podcast. Many of you do listen to the podcasts every day. You find it on Apple, Spotify, iHeart and of course on the Bloomberg platforms as well in New York City and San Francisco.
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