Bloomberg Audio Studios, podcasts, radio news from the heart of where innovation, money and power collide in Silicon Valley and beyond. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
We're alive from New York City. I'm Matt Miller.
This is Bloomberg Technology coming up. US CEOs, including Tim Cook and Cristiano Aimen are in Beijing as Chinese leaders prepare for tariffs that exceed expectations. Plus byd Beats, the Chinese electric vehicle maker posted more full year revenue than Elon Musk's Tesla, even as it sold fewer cars. And an exclusive interview with the CEO of Airbus live from the Airbus headquarters as the company looks to ramp up production of their next generation next generation jets, but first
real focus on China. That country is hosting its annual Development Forum. Top executives are there, including Apple's Tim Cook. As we said, Qualcomm's Christiano Aman in attendance with plans to meet President Shi Jingping and other leaders. We've heard that Chinese Premier Lee Chung said, at this time, I think.
It's even more important for.
Each of our countries to open up markets and for all of our businesses to share their resources more. This is the world braces for US President Donald Trump to announce more tariffs on trading partners April second, so about a week from now. Bloomberg's Mike Shepherd joins us for more in Bloomberg, it seems like traders on Wall Street more optimistic than leaders in Beijing. Why do you think there's that mismatch here.
Well, it could be that some of what we are hearing here in Washington hasn't quite filtered back to audiences there in the Chinese capitol. But there is also the need for leaders in China to tell the public, to tell businesses there to brace for the worst. And it is also a way for them to say, hey, look, we have to get our act together domestically with our economy as well, especially if the worst could be coming.
And they also know that even if traders here and journalists like ourselves are hearing that way, maybe this time around, for the first round of this April second tariff, it won't be quite so bad. Things are still very fluid, and we even heard from a White House official this morning, our colleague Josh Wingrove, who's great scoop over the weekend added to some of that reporting. Maybe things will be a little bit easier. You heard from a White House
official who said, look, things are not decided yet. They're still pretty fluid. May see, those sectoral tariffs people are worried about have been worried about. Those are the ones on chips and on autos and on drugs that may have been put into play earlier by Trump may have been taken off the table by officials for now. But Josh is reporting his signaling that, you know, it is not a done deal yet.
So Mike, what are we then expecting?
I mean, I thought the idea was that whatever you charge.
Us, we're gonna charge you.
So if Europe has ten percent tariffs on autos and we only have two and a half percent tariffs on autos, we're gonna raise our tariff to that level. Same is true on you know, dairy products or meats.
Really across the board.
I thought the idea that President Trump was just gonna charge them exactly what they charge us, and that keeps it in his in his mind.
Fair well, you know, you're right.
He had been talking about tariffs really in kind of two lanes. One is the idea of reciprocal tariffs. We charge you with you charge us just as you kind of laid out, depending on the sector of the product. No matter what, they will find a way to kind of even things out the way the President likes to talk about it, to keep it fair in his view.
But they had also talked about measures aimed at whole sectors and that did include computer chips, that did include pharmaceuticals and autos as well, Yet the planning for that was not as clear what we have gotten signals though on the reciprocal tariffs front.
It's interesting.
We've also heard from Treasury Secretary Scott Besson who tried to narrow perhaps the playing field of countries and goods and categories.
That might be targeted.
Last week, he was talking about the fifteen worst defenders for lack of a better word, where they would want to concentrate their energies first in terms of crafting these reciprocal tariffs.
And of course, as we saw this.
Morning with Trump announcing tariffs on other countries who buy oil and gas from Venezuela, really anything could be in play at any moment, so we really are sort of waiting a little bit anxiously or nervously for whatever comes out on April second, and really trying to report that out ahead of time.
Shep thanks so much for joining us, Mike Shepard there from our Washington d C Bureau.
Now check this out.
BYD sales surpassed the one hundred billion dollar mark in twenty twenty four, actually over one hundred and seven billion dollars, leap brogging Elon Musk's Tesla on revenue. But the shares, as we saw, are not gaining quite as much as Tesla's up about six percent.
I guess it's better than a stick in the eye.
But Tesla's up ten percent today. It's biggest gained since November eleventh. Let's get out to London right now and talk with our cars. Are Bloomberg's Craig Trudel. So, Craig, what is BYD doing differently than Tesla?
I think they've really had this very consistent playbook of we're going to give consumers a really broad range of vehicles. We're not going to be dogmatic about, you know, battery electric vehicles only. We're going to offer plug in hybrids as well. I think the fact that you know, we've seen as a sort of global trend, even in places like China where you know, battery electric vehicles, uh, you know, it's many multiples of what gets sold anywhere else in
the world. Even there, we're seeing some slowdown in terms of the take up of fully electric vehicles, and we're seeing a real acceleration in demand for plug in hybrids, and and BYD has has been on the sort of leading edge there, you know, offering offering extended range electric vehicles, which you know, if you think back to sort of the Chevy Vault that General Motors brought out more than a decade ago, it's it's you know, sort of similar with that kind of technology where you know, an engine
is never directly powering the wheels, and you know, their ability to offer you know, both plug in and hybrid and plug in hybrid and full electric vehicles at extremely affordable prices has allowed them to achieve scale that you know, Tesla can only really dream of at this point.
I know Jim Farley for one, is pumped about those e revs. So having an engine on board that simply powers the battery and doesn't power the wheels. We'll start seeing those come out of Detroit soon. I think as Dodge is going to put out a truck, an E Rev truck. Craig, what about the money being raised in China. I noticed that byd has raised more than five billion dollars in the secondary offering. I see that shall Me is looking to raise more than five billion dollars in the secondary offering.
I mean, coming from a New York.
Perspective where IPOs are not on hold but fairly slow, Hong Kong looks like it's absolutely on fire. This just helps the Communist Party to power ahead on evs in a way that it's not possible for us to do here in America.
I think that absolutely the right read.
I mean, we we.
Did see, you know, a few years back, Tesla rays at an incredible rate, you know, when they were really sort of getting their momentum with the Model three, in the Model y you know, I think Tesla went from being this this company that was really struggling to sort of stand on its own two legs, and they really sort of achieved escape velocity, and in the process of doing so, tapped Wall Street for an awful lot of money.
We also did see, you know, a real sort of active you know, in environment for you know when you think back to the likes of Lucid through this back market or Rivan through an I p O. So I do think that we've we've seen we we did sort of go through this spurt of activity in the US. But to your point, we're seeing this with John Me, We're seeing this with b y D. I think I would add to that even c at L as well
looking to do a second offering in Asia. So we're we're seeing a real acceleration of these your players in that space, raising an awful lot of money, even you know by terms of big automotive companies that are very cash hungry.
Craig, great to get some time.
Thanks so much for joining us. Bloomberg's Craig Trudell. Our cars are his covered cars from Tokyo, from London and from Detroit. Coming up, The CEO of identity protection app Aura and its investor Jeff Katzenberg joined us to talk about Aura's new AI powered tools aimed at protecting youth mental health. By the way, I'm also watching shares of SAP, the German software developer in trading today right now up one and a half percent and right now the largest company in Europe.
By market Kath. With this growth, this is bloomberg.
As parents look to keep their kids safe online. Identity protection firm Aura has released new AI tools to track youth mental health that comes on the heels of the startups one hundred and forty million dollar Series G funding round.
Aura's CEO Hari Ravi Chandron, and the company's biggest investor, Jeffrey Katzenberg, managing partner at Winderco, are here with me, and I appreciate you guys joining me on this topic, which you know, I think finally is getting the attention that it deserves, the damage that social media and technology due to the mental health of our children.
Jeff, let me start with you and.
Ask what brought you to this investment and what sort of put you on this put you on this path?
Love it?
So.
I spent forty years in the media and entertainment business at the Walt Disney Studios and DreamWorks, and every day got up and was in the world of bringing to parents, mom, dads and kids safe content and the appreciation of you know what that means. And today keeping our kids safe has actually never been more challenging or more complicated because of these devices and the online lives that we have. When I parented my kids, there were three things I
wanted to know. Where are they, what are they doing?
And who are they with?
And today they could be sitting in your kid can be sitting across you at a kitchen table with a phone in their hand. You cannot answer those three questions. As you said, there is actually just a growing epidemic of how damaged and damaging we are doing to our kids today, this generation. It's extraordinary. And I'll read you a few stats just to frame how big the problem is.
So twenty percent of adolescents report low self esteem, fifty two percent have experienced or our experience an eating disorder, seventy percent of teens say anxiety and depression is a major part among their peers, and a shocking twenty five percent have ideation around suicide. So this is just we're destroying our kids. And what Hari has done as the founder of this is through his own personal experience, which he should tell you about dealing with his own family.
Got on this mission two years ago to say he built a company in which he has brought security for families online.
Now he's going to bring safety.
So how are you tell us about your experiences before starting this company, and then how are you solving the problem?
Yeah, no, I'm happy to I have four kids, and so one of my kids about to your ago, was going through a really tough patch, whether feeling depressed, feeling down, some negative coping strategies, which was very frightening to us as a family. And so leading up to that, you know, we were pretty tight knit family. You know, we spend time together. Ask her how she's doing, she says, Oh, everything's fine. And then as we're kind of going through the recovery cycle, we asked.
Her how she's doing.
She says, I'm doing fine, and so as a parent, you wonder, well she's saying the same thing, is she
actually find or not right? And so then we started looking around for tools because the one thing I do I do know during that journey, when we were super privacy or never gave you know, never spend time on the kids device or anything like that, during the journey, we did spend some time on the device and there were things there that I wish we'd kind of found earlier because we might have been able to help her sooner.
And there really weren't any tools there, just wasn't anything to actually go do this in the systematic way, and we already were helping a lot of families with content problems, etcetera that their kids had. So this is a natural entree for us, and frankly is a tool. I need it for my own kids. So I figured there's lots of lots of families that can also use the same technology as well.
Jeff, how do you deal with this in your family?
I mean, we've heard from recently Kate Winslet who said her method is just to ban all social media for her children.
Can't you cannot. It's an impractical thing. And so what you need to do as a parent is you need tools. You need insights in order to be able to navigate and help your kids navigate through these.
Challenges.
And what you need for a twelve year old or thirteen year old is quite different from what you need for a sixteen year old or a seventeen year old. And what Aura has created and is delivering is not spying.
It's about giving.
You the parent insights, giving you enough knowledge you can still give your kids a lot of leeway and a lot of privacy.
We're not reading you as a.
Parent, are not going to read their text, because if you do that, they're going to find a way to get off this and get around it. In it they you know, they actually want some help, They want some guidance. We hear that from you know, our beta, from the
kids that are on it today. And so the analogy I would give you is is that when your child turns sixteen years old and gets a driver's license, you don't send them out on a you know, on a highway doing sixty five miles an hour without practice, coaching and some experience in time. Why would this be any other different?
Why?
Why should this device? Why should you.
Be out there in that world, in the wilderness with no guidance, no help, And parents right now are really really struggling with this. And it's why, frankly, you know, I'm so proud to be on this mission with Hari, because I think he's created something that's gone from a nice to have to something that's actually essential.
We hear it all the time. Parents are just desperate for help. Is it an arms race?
Hari?
I mean, have you found a solution that will work forever or do you have to continually develop those tools? As you know, social media continuating.
If they're always innovative innovation run. I mean, you're continuously trying to stay out in front because people do catch up from behind, both in terms of you know, social media companies changing strategy, et cetera, but also because the competitive set, especially with AI revolution, building things have been easier than ever before. So you have to build modes and go to market avenues in other areas beyond just technology. You have to keep evolving the tech as well and
finding more and more use cases. But you have to do a lot more than that anymore, especially with AI making things so ubiquitous.
Can you work with other social media companies? I mean, Jeffrey Katzenberg, you must know some of these executives who run you know, Facebook or Twitter. Can't they be helping as well? It's a problem that they should be aware of.
Maybe they can, but they have their missions they're on And I want to be clear, not all social media is bad, right these there's been incredible, incredible values that have been created in terms of community and communications and knowledge and just extraordinary access that we have in this new generation has with these tools in it.
And so this is a byproduct of it.
The rabbit holes, the deep dark rabbit holes that you know, one can go down or get sucked down into in it. And we're not here pointing fingers at anybody. What we are doing is is we're creating a solution. And frankly, I would think those companies would be.
Thrilled with this solution.
And you know, it comes out of these things you use. In my opinion and certainly my experience matters, they come out of a person with enough technical and experience and knowledge in an area who suddenly comes upon a mission and hare from his own personal experience with his own family. Has been mission driven for the less past two years, and I think that's what has created something that is so invaluable and practical and of the moment in time.
Well, I appreciate you both coming by to talk about this. It's an issue that Bloomberg is focused on as well, so very important too, I think all of us, certainly as parents. Thanks very much, Jeffrey Katzenberg and Hari Robi Chandron of Aura. Now I have breaking news on the Bloomberg right now.
Shall me? Is said poised raise.
Five and a half billion dollars in an upsized share placement. The last we spoke, they were looking to raise five point three billion dollars in this secondary that was fully subscribed.
It looks like it may have been over.
Subscribed and now they could raise more. Nonetheless, shall me shares intra day or down one point three percent? Take a look at Strategy and Bitcoin both rising today.
When I say Strategy, of.
Course, I mean Michael Sailor's rebranded micro Strategy bought five hundred and eighty four point one million dollars a bitcoin after the company raised more than seven hundred million last week from the sale of perpetual stock. For more, Bloomberg's David Pan joins us now in studio.
David, I guess.
It's semi interesting, right, at least in terms of the way they raise money.
What is perpetual stock?
So it's like a debt like capital raise, you know, it's a little bit different from the vanilla convertible bond raises before. I think it's just the latest the sign of strategiest effort to tap into all different kinds of levers to raise capital by even more pet coin from now on.
So, and that's all that Strategy basically does. Right, they have a small business on the side. What is it like a software business.
Right is the enterprised software business used by a variety of companies including McDonald's. You know, had a more meaningful significant cash flow before, but compared to the sheer size the bigcoin holding and and you know the games from the bitcoin holdings and now it's less and less significant on the balance sheet.
Yeah, it seems to me this company is all about the bitcoin holdings.
Bitcoin is up today.
It looks like just with the risk on mood of the market, has there been any reversal of that correlation or is this just how bitcoin trades.
I think typically when we're seeing you know, like bitcoin going down, there's there tends to be stronger correlation with the stock market.
That's that's just.
Historical trends over there. So we are seeing actually, you know, macroeconomic factors are playing way more important role in terms of bitcoin prices. And you know, despite a lot of the positive events in the past few weeks like Crypto Summit and staplecoin bit and those kind of events haven't been having any big positive impact on the bitcoin priceis you know, compared to the macro micros If.
The government doesn't actually go out and buy new bitcoin for a strategic reserve. Then that's not as positive as maybe it would have been before. David, thanks so much for joining us. Bloomberg's David Pan, Welcome back to Bloomberg Technology. I'm Matt Miller in New York taking a look now at a fund using an AI powered model, which is warning against buying AI stocks. The fund has returned twenty six percent annually in the past five years.
So maybe one you want to listen to.
Bloomberg's Isabelle Lee has that story.
Isabelle, what are we talking about?
Hey, Matt, We're looking at a fund that's overseen by Danielle Maher. So it has outperformed most of its peers nine nine percent in the past five years, and even it's benchmark Russell three thousand. So it's underwit a lot of the big tech companies because he said that there's still volatile and even the two trillion dollar sell off we saw the past weeks haven't made these companies cheap.
He still finds them expensive, he still finds them having frothy valuation, and he still finds them volatile in the past weeks and in the years to come. And he said that he is preferring other sectors his sector neutral. He has around one to seventy security selections. And the thing about his fund is it's process. It has a decision tree analysis, which I just recently learned about, and it mimics human thinking. So that's really what sets his fund apart.
So why doesn't he like tech stocks?
Why doesn't he like AI which has delivered such fantastic returns, certainly on the megacap side over the past couple of years, he said.
Are volatile and they have frothy valuations. And the thing is he's still invested in them, but he's just underweight. And interestingly, he said, he calls it quote risk management. We know that active managers have really outperformed the passive investments in the past few years, and it's really hard to beat the Magnificent seven. But it's interesting to see funds like these because he still outperforms even if he's
not just all in on this big text. He also said that he doesn't really try to follow fundamental news, even with this whole headline driven markets, with tariffs and everything. He said he doesn't want to have any binary outcome. What he's just interested is in the fundamentals of the stock, not anything we hear in the headlines, and that's why he's underweight all these megacap tech stocks.
Does he have any discretion in this fund?
I mean, it's not set parameters from a program.
It's a purely quant fund. It uses decision tree analysis. So the way it works is there's a branch, so you answer yes or no. You use factors like momentum, economic mode. And then the interesting thing about this is most quant funds have like a black box system and you really don't know how to spit out that certain stock.
With him, you can see the rationale because of the factor based This isn't model, and he really almost never tries to insert his discretion other than the fact that if there's like a wrong input when it comes to data. But then other than that, he follows the quant model to heart. And he's been doing it the past twenty years, all.
Right, So he does stick to those parameters and it does not hurt returns. Apparently, Isabelle thanks very much, Bloomberg's Isabelle Lee.
Now.
Startup acquisitions have kicked off twenty twenty five with a boom, as evidenced by last week's thirty two billion dollar Google deal for cybersecurity firm WIZ. Here with more on the M and A landscape is Bloomberg's Katie Roof. She joins us now here in studio at seven thirty one Lex. Good to have you on this side of the continent. So M and A overall has been kind of a
snooze this year compared to what we were expecting. But in your corner of the universe, which is venture capital and startups, it's been on a tear.
Yeah, exactly.
So we've set a record for dollars, partly aided by WIZ, but we've actually already tied the quarterly record in terms of well, we've had eleven billion dollar plus sales startup sales, and so.
We've got a week left. And part of this is.
Driven by perception that Trump's will be better for regulation. Obviously He's you know, there have been mixed comments on that, but that did play a role with WIZ. They turned down the offer from Google last year because they were worried about the administration blocking deals and so they're hoping that this time will be better. But there's also other factors. There's you know, also market volatility, partly due to the tariffs actually may have played a role.
According to one banker.
I quoted Dave Chen in the story and he oversees Morgan Stanley's tech banking. He said that startups are saying that the volatility makes them more likely to sell because they're worried about IPO.
Yeah, volatility is another word for drops. I've learned.
We've seen a correction, obviously, not only in the tech sector but in the broader market. Does this maybe mark a bottom? Could we see a turnaround from this point?
Well, it's you know, there's a lot of things at play here. So I think in terms of IPOs, we're looking at maybe up to eight venture backed IPOs and Q two, which is more than we've seen in a few years. But right now there's a thousand unicorns, there's a thousand venture back private companies that have yet to exit,
so they need to either ipo or get acquired. And so even with the eleven startup sales and maybe the eight venture backed IPOs coming up, we're not even close to what we need for liquidity in the ecosystem.
So I guess that means this is going to continue or we're going to continue to see record M and A in startups.
Possibly, I think, especially if they feel that the bar has gotten pretty high to IPO and that, you know, the market conditions aren't perfect for IPO the way they were in twenty twenty one, we may see, you know, some taking that bird in hand, even if it wasn't their dream price.
All right, Katie, thanks very much.
Bloomberg's Katie Roof talking to us about startup m and a coming up an exclusive conversation with the CEO of Airbus.
Key On Fury joins us. This is Bloomberg.
Welcome back to Bloomberg Technology. I'm Guy Johnson, taking over from Matt Miller for the next few minutes and taking you here to the air Bus headquarters in to Lose, France, where cutting out to technology is a day to day activity. We're at the Airbus Summit where we're discussing everything from sustainability to hydrogen to what happens with the next generation of aircraft and the technology that is going to go into them. And I have the great pleasure of being
joined here by Gilm Fourie, the CEO of Airbus. Gilm fantastic to be with you here at this summit at the Airbus is home here in to lose the summit. We're asked at the moment that the big focus is sustainability. A lot of technology is currently being pushed into this space as we try and make aviation technology. The big
technology that we're talking about is sustainable aviation fuel. That's going to do a lot of the heavy lifting, but hydrogen and all kinds of other technologies beckon in the future.
The target we have right now is.
To make aviation net zero carbon by twy fifty. Is that still achievable?
It remains the target and there are plenty of reasons to believe that it can be achieved.
There are also some challenges.
One of the reasons we have the submit the ABBE summit is to discuss those topics to understand better as the problem, what goes well, what needs to be done Differently at ABUSWI remain committed to the twenty to fifty objective of carbon neutrality. That's what the industry has agreed together, and tomorrow we will be sharing a lot of good news on the progress. We know that on the sustainableivation fuel that's a challenge and we need to do more work on it.
Is it going to be possible? With Donald Trump in the White House. He doesn't seem to see the United States as the forefront of green technology. In fact, is going in the opposite direction. Can twenty fifty be achieved with Donald Trump in the White House?
Well, the progress we need to make to decarbonize aviation by twenty to fifty relies on different pillars. One of them is the planes, the plane themselves, that's what we're doing. And for planes, competitiveness means fuel efficiency and fuel efficiency means sustainability. So the two objective are aline. I say, economy and ecology are aline. So we'll keep going and airlines will continue to buy, preferably planes that burn less fuel, whatever the fuel. For the development of stuff, it's a
bigger challenge. It's important to have unity. We need a global level playing field on saff and obviously we need to understand better what did we mean for the US and to what extent the others will keep going at the same pace.
What should you go? The line?
Well, anyway, we see different dynamics in different places of the world. Europe has gone quite alone on the feit for fifty five, putting mandates on the use of staff.
It's a different way.
It was already a different way with the previous US administration with IRA and subsidies for staff, and China is going also another way.
That's one of the problems. We need this to be unified.
It just came back from China. What did you say that what kind of technology are they going to once again leap frog in the way that we've seen maybe them doing in electric cars.
I think they're really serious on the transition. They're really serious on decurbanized energy, on the use of solar, of wind.
Of nuclear. They grow. I think half or.
Two thirds of the additional capacity of decurbanized energy last year was coming from China. So they're really moving forward at.
The right pace.
And yes, there is a likelihood that they would go faster than others on decurbonized technologies with the risk that we would see in adiation in fuels what we see today in electric car. So we're really taking themselves, but there's also a partner we can rely on for the development of stuff.
Let's talk a little bit about what is happening here in Europe. It seems at the moment security is more important to Europe than sustainability. Do you see it that way? Is that how it is developing.
I don't think it's more important. I think it's a precondition.
You need security to have prosperity, and you need prosperity to fund your climate transition and your deg urbanization. So security comes first, and that's what we are looking and what we're seeing in Europe. I don't think there is a competition between the different investments, at least at the moment, at least for ABBUS. We have different businesses, we have
a strong balance sheet to fund the different investments. But yes, there is more that we'll go to space to defense than it was in the past, and that's an opportunity for us because we think it's important for the security of Europe.
You talk about space. One of the key pieces of technology that Europe is relying on at the moment has been used heavily in Ukraine is obviously STARLK. How quickly can Europe replicate something similar to what we see with Starlin.
Starlink is clearly a breakthrough. The constellation is already large in the air. We have consultation in Europe that are flying already, but they are much smaller, so we need a demand at scale. We need countries to come together with a common need and we need the industry to come together to supply. So your hope needs scale of technologies. We have very similar technologies, but it needs to go into.
A project at scale. How quickly can you do well, It's going to take a bit of time. We're moving as fast as we can.
We have indicated that we are in discussions with Leonardo or friends from Leonardo and Tales to create a joint company for satellite manufacturing.
Can I think about that as an air bus of space? Is that what we look we're talking about.
It is an ambus of space.
It is a joint venture between companies, so that's probably a bit different. But that's creating the scale in Europe to be able to be competitive on a global scale.
Can you do the same thing in defense?
It has to be done.
It's going to be probably more difficult because the sovereignty for security and defense it's at the level of nations of countries and we need countries to come together with common projects to create that scale and then having the industry serving these project that scale. But we're too fragmented in defense in Europe. That's very clearly written in the Drugie Report. There's something that is now acknowledged. We need to find these solutions.
So in terms of how you're thinking about how you develop airbus from here, over the last few years it has been civil focused. Do you see space defense becoming similar scale arms of air bus? People have often talked about defense big subscale at airbus. Is that going to be the future? Is the defense arm going to be subscale? Is space going to be subscale? How quickly can you get it to scale? And will it be of something similar to what we see behind us in the civil side.
We are not only an airbus in commercial we're also an abbus in defense and in helicopters. We have created the scaling helicopters already in the past and we are the number one helicopter manufacturer in the world by a turnover and by number of helicopters. So that's something we are doing in other areas of business than commercial.
Yes, we are also an airbus in.
Defense with projects like the Eurofighter, with project like the afourn of them where European countries partner together to create product that is the best.
In the world at the moment.
But we need more of this, and it is the DNA of airbus to bring collaboration, to bring partnerships, and to create a project that at the right scale and therefore the right scale of investments and therefore the right competitiveness.
Do you think Donald Trump is bringing Europe together? Do you think it's gonna euro realise on the crisis? Is this a big enough crisis to bring up?
Europe is making progress through prises. We are challenged by a number of things changing in the world. The fact that Europe needs to take security and defense in its own hands. It's something that in my view really makes sense, and that's what Europe.
Is doing under a number of pressure points. Ukraine is one of them.
What's happening in Ukraine and also what Donald trepoints to achieve is another question point on Europe to take its destiny in its hands.
Donal Trump talks about his favorite word has been terrorists. What do you expect in terms of terrors? How already is it impacting? Airbus? The aircraft, indeed, the eight three twenty one XL comes from around the world. We were joking earlier. The nose comes from France, the engines come from America and France. The aircraft is an aircraft of the world. But that creates vulnerability. How are you thinking about tars what is the impact being already?
Well, that's an important point for industry. We add tariffs on aircraft four to five years ago between the US and Europe and has been a lose lose and therefore we had a ceasefire.
In twenty twenty one.
And I think this experience has been interesting in showing that for a sort of North Atlantic ecosystem, both sides of the Atlantic does only lose lose in putting tariffs. We have not heard about tariffs on aviation at the moment. On aerospace, I think that's repairing. I think that's a good sign. There's nothing more I would say really to prepare them to communicate to Exchange to explain we have a lot of infrastructure and manufacturing capabilities final assembly line
in the US. We're procuring from the US selling to the US, and the US manufacturers are doing the same with Europe. So tariffs in the middle of the Atlantic would really be a big burden for both sides, and maybe that would be even tougher for the US manufacturers.
Have you been putting extra resources into the Alabama parts? Have you been stop piling? Have you been there's no kind of preparations or anything that you have been taking on thus far in order to get ready for something that could be coming.
No, keep doing what we've been doing so far, relying on Alabama. Indeed, that's a plant where we have a three final assembly line.
One is not yet delivering planes, but the two others are.
So we are cocuring from everywhere around the world assembling there in the US with the US jobs, two.
US airlines as well.
So I think we are key to the US ecosystem, to the Vision ecosystem, and we think that plays a big role in how tariffs are targeted.
Okay, final quick question you sits on actually the Business Council in America. You speak to CEOs there, What message do you take to them from Europe? What is the message that should be coming to a US business and b the US administration.
Well, at the moment, I think there's a lot of questioning of what where all this is going, what it will mean for each industry, since a bit and wait and C mode to understand better for how long tariffs could come, who will be impacted, how to respond to the tariffs if any As I told you, we are not directly targeted with tariffs at the moment.
But indeed there is a lot of.
Questioning and to understand better what is changing and how to adapt.
We are in the world that is fast changing, and.
It's a lot about adapting to those changes.
K it's great to be here to Louise, thank you very much for for inviting us here to us as headquarters in Toulouse in France. Gimfouri, the CEO of Air of US.
Apple is exploring the idea of adding cameras and visual intelligence features to its smart watch Thrus singing the company into the AI wearables market. Bloombergs Mark German joins us now for more So, Mark, what do you know about these developments?
Yeah, thanks for having me.
Over the past year and change, companies have been trying to see if they can meld AI with hardware. We've seen failed attempts like the Humane aipan. You've seen bigger splashes like the ray band smart glasses from Meta And what these have in common is they have cameras and microphones and widening cameras and microphones.
Because to really.
Take advantage of the AI, you need to have a solid understanding of your surrounding environment. And so what Apple wants to do now is bring cameras to its wearables. So they're working on new versions of AirPods as well as new versions of both of its Apple Watch models that add cameras in order to have a better idea
of the outside world. One thing you're looking at now is adding cameras to the Apple Watches, and so what that would entail is pointing your Apple Watch at something and then that pulling up the visual intelligence future they added to the iPhone sixteen models last year basically, scan a poster, scan a plant, scan anything, and it'll tell you what it is using Chat, GPT or Google Search. And so the idea here is for Apple to eventually convert its models to have that capability to do that
instead of Open AI and Google. But the bigger picture here is adding cameras to as many devices as possible in order to get people to upgrade, but mostly in order to tap into its artificial intelligence offerings.
Hey, Mark, I use chat GPT a lot and I talked to it.
It talks to me. It's pretty helpful, fun conversations.
I try that with Siri and it just doesn't work as well. What are they going to make real advances with their AI assistant.
It's going to be a while. At this point.
My belief is that they're not going to have anything significantly new or really powerful until twenty twenty seven, so we're about a few years away. And you know, as I wrote last week, they're shaking up their management of Siri. They've actually removed Siri from the oversight of their head of AI, right, which tells you pretty much everything you need to know, and they've moved that into their software engineering organization and they put the guy who created the vision pro in charge of it.
All right, Thanks very much, always great to talk to you.
Wish we had more time, Bloomberg's Mark German. They are talking us through all things Apple. That does it for this edition of Bloomberg Technology. Don't forget to follow our or check out our podcast. You can find it on the terminal as well as online on Apple, Spotify, and iHeart This is Bloomberg