China Considers Musk as TikTok Lifeline

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.

Live from New York. I'm Caroline Hyde and.

I'm Mike Shepard and Washington in for Ed Ludlow. This is Bloomberg Technology.

Coming up.

Could elon Musk be TikTok Savior? China is analyzing the option to save the social media company in the United States and work with the next administration. Plus Nvidia CEO Johnson Wang goes to China this week as the company is slapped with curbs on the sale of its AI chips abroad and off to the space race with a space infrastructure startup, Lost Orbital out with new funding news to operate its satellites in Low Earth orbit. But first we check in on these markets which have been moved

But then we have the ongoing.

Narrative of how we impost harriffs on other countries, in particular on China in the next administration. We're currently trading flat as we have scoop after scoop coming from our Washington based colleagues. Bitcoin, though managed to fend off some of that risk sentiment. We're currently trading two point two percent higher, perhaps more looking towards where we could see Trump and the next administration.

I in Crypto move on to have a look at.

What's happening in terms of the individual movers, and I go to a key story of the day, were of course going to be analyzing if Elon Musk could indeed take over the US operations. TikTok It is being eyed by Chinese officials, but it has its impact on Meta, which also has been falling lower. I might add because if there's some concerns surrounding the fact that well, they're going to be offloading some of their lowest performers at a faster rate. We'll get to that in a moment.

Let's get to all of this a Bloomberg Sarah Fryer.

And Sarah, Where has this narrative come from? That Chinese officials not bite Dance, but Chinese officials might think that Elon Musk could be a good owner of this key social media company.

Well, from what our starts tell us, they have been evaluating the potential options for TikTok. Should the band go through, which it looks like, you know, based on the Supreme Court arguments and how that went, then it's very likely that that well, we will see the law being acted. Elon Musk appealed to the Chinese government because he has experience dealing with businesses in China through Tesla. He has

Sarah.

Back to Elon Musk, but more from the perspective of him as a social media platform owner already. How would acquiring TikTok work for him? Is this something he has floated before or thought about before?

And how would he come up with the financing too?

It would be a pretty expensive purchase, Well, it would be.

It would be relatively insane to do this. I mean, he just bought TikTok. Sorry, excuse me, he just bought Twitter from forty four billion in twenty twenty two, and he's still paying off those loans, so he's not very liquily. He's the richest man in the world, but his money is not very accessible to him. If you were to buy TikTok or propose such a thing, it would certainly cost many billions. We don't We don't know exactly how much, but some estimates put it around forty to fifty billion

Briefly, Sarah, the are any of all of this? Some other Chinese owned social media companies are doing really rather well. People are moving off from TikTok potentially to find new homes. And you go to Apple's app store, what's trending?

The top apps are from China. And I think that this is this is just indicating that the US consumer is already embracing multiple Chinese apps. There's She, and there's Timu, There's there's a lot of you know, nascent social apps that are that are booming right now. And so I think that this is this is going to be a whack a mole problem. One of the solutions to the TikTok potential band could be that they just rename a.

New one Bloomberg. Sarah Frear, Thank you.

Now let's bring in Sarah Krepps into the conversation. She is the director of the Tech Policy Institute at Cornell University in Ithaca, New York. Sarah, this question of TikTok is coming to a head now. Any buyer would have to really demonstrate a complete separation from China.

How would they go about doing that?

What would be the process once this sale were to actually emerge if by Dance in China agreed.

I mean, it's such an interesting question, And it came up in the Supreme Court hearing last week, and the TikTok lawyer said he did not even think it was possible to divest or separate TikTok from the owner Byte Dance. He said it could take years if it's even possible. So at the same time, the US Solicitor General and those same hearings, said that she.

Thought that maybe the Chinese government was playing this game.

Of chicken and might at the last minute float some

At all, Sara, how would this fit into the broader exchange and relationship between Washington and Beijing over matters including trade and other technology related security issues. Is this something that China could offer perhaps as a bargaining chip as Trump takes office.

Yeah, I think it's pretty savvy in two ways.

One is that they're very mindful of the influence that Elon Musk has as an advisor in the incoming administration, but also that the incoming administration really seems to want to be making some like opening a door for better relations with China.

Both of these countries.

In the last several years, including in the first term of the administrative Chump administration, technology really was at the center of this rivalry, and so they've gone back and forth.

And TikTok is emblematic of this rivalry.

But we see this in the chips space, in particular in the chip space and AI.

Just yesterday that the Administrator of the.

White House in the Biden administration, in its last days, issued a new policy and AI diffusion policy trying to make it more difficult for.

China to access US made chips.

I want to reiterate to our audience that, of course no comments have been made by thus far the Chinese officials. We know that you know, Musk hasn't responded to this report, and indeed Bite Dots itself has called it fiction. But I am interested, Sarah, to push us forward. What the outcome seems to be of a potential TikTok ban has been a movement onto other Chinese owned social media companies.

How big a national security issue is that?

Then well, it's interesting to me.

Either they don't understand the law or they are banking on the fact that it will be just too difficult to enforce, because last week on TikTok they were trying to push people to Lemonade, which is also Bite Dance owned.

Now they're trying to push people to Red Note, also.

Chinese owned, and so all of those social media platforms would be covered under the law. There must just be an assumption that enforcement of this will just be a cat and mouse game, and maybe the incoming Trump administration, who again seems warm to the idea of or has looked and indicated that they don't support the ban, might just turn a blind eye to these kind of complicated ownership structures.

Or what's Red Note or what's Lemonade.

Oh, that's Chinese owned and just kind of stain enough behind it that something gets to perpetuate it.

But at the same.

Time, what I think the members of the National Security risk here was that you had one hundred and seventy million Americans in one space and actually to the extent that they migrate elsewhere, that's actually.

A win interesting new Shaoholmshoe or red note, as it's new known, it seems to be oldganic movement actually going over to that particular app it's not related to Bite Darts.

But as you note, Lemonate certainly.

Is so push us forward as to you said, how difficult it is to disentangle us TikTok from ultimately the rest of the parent company. China has some sort of authority here, even though of course there's not much direct ownership of a Bite Darts, but because they can control who gets to have access to algorithms sold by Chinese companies. Do you think in any way the Chinese would ever want its algorithm held by US company, whether it's Elon muscowned or otherwise.

No, I just don't see that scenario because it's too lucrative that essentially TikTok is this very sophisticated and very effective algorithm, and this is highly valuable to byte Dance, and there's no incentive for them other than to keep operating in the US, but to share any of that. And so I don't again, Lawyer himself said last week, I don't see how you can actually disentangle these because then TikTok without that ad or algorithm, just becomes any other social media platform.

Sarah Creps, it's great to have your expertise, Director of Cornell University Tech Policy Institute.

Thank you.

Let's just relook at meta shares for a moment. As I mentioned at the top, the company is planning to cut about five percent of its lowest performers. This is all according to an internal memo sent to employees now. The memo reads, I've decided to raise the bar on performance management and move out low performers faster, and of course coming from CEO Mark Zuckerberg, the memo also mentioned intentions.

To backfill these roles.

This year, all of course with an eye on where the focus is around AI for the company in the future.

The Biden administration is rolling out measures to boost car manufacturing and AI development in the US, even as it looks to sharpened curbs on Chinese technology and free tea up potential restrictions for Donald Trump to enact. Let's bring in Bloomberg's Mackenzie Hawkins for more. Mackenzie, You've done so much reporting over the past year on this wave of restrictions on everything from semiconductors to AI technology.

This is the final shot from the Biden team looking ahead.

Do we see the incoming Trump administration holding on to some of those curbs.

So this week we've seen almost a new regulation or two every day targeting China's tech industry and trying to boost Americas and National Security Advisor Jake Sullivan said yesterday that he does anticipate that Trump will maintain a lot of the China contours that Biden is setting up in

Just remind us how expansive these new rules are, what indeed it includes, because it's not just AI chips.

So the restrictions announced today are actually targeting Chinese automotive technology. We have restrictions on the import of cars that contain certain software and hardware from China, and it's specifically Internet connected cars, but that's pretty much every car.

You can almost think of.

A car as the BIDE administration does, like a smartphone on wheels, and the goal is to prevent China from gaining access to Americans' personal data as they travel along American roads. But this is also a preemptive measure because there aren't actually that many Chinese cars in the US thanks to tariffs of over one hundred percent on Chinese evs.

Mackenzie.

Looking more broadly, some of these restrictions, including the ones in particular unveiled yesterday on AI technology, have started to hit a nerve. We heard video really objecting pretty loudly. Do we expect some of those objections to now really take hold and have some influence.

So what we saw yesterday was the administration expanding what has now been several years of curbs on the export of AI chips to China and a bunch of other nations to the entire world, with caps for specific countries and caps for the maximumount that can go to any one company. This set off a massive opposition in the tech industry, led by Nvidia. His chips are going to be the most affected, and absolutely they've been lobbying really hard.

Putting Megs Mackenzie Holkins, thanks so much for tracking it, and let's hone in a little bit more on Nvidia and Jensen wom because while Washington is slapping on these new curves at a time when Beijing is investigating the company's own domestic presence, well, Jensen is embarking on a trip to China and it's this week let's discussed being Megs. Peter Elstrom to more on this, pieta interesting timing Jensen Wang visiting the key capitals.

Very sensitive timing. We know that Jensen Wang is going to be in Taiwan this week. He's going to tend to party there on Friday of this week, but after that we've heard, according to sources, that he's going to go over to mainland China. As you mentioned, he's going to stop into Shenzen for New Year's party we understand, to celebrate with some of the employees there, and then his plans are to go to Shanghai and Beijing after that. He could still change these plans, as you pointed out

They've been adding.

Employees there, especially around autonomous vehicle. So the company had a bit of a setback, as McKenzie was laying out earlier, with these new regulations around AI exports that affects in Vidia very very directly. They've been outspoken about wanting to oppose those curbs, but Jensen Wang is still trying to build a bridge between some of these different markets that are so important for his company, Peter.

One destination that doesn't seem to be on Jensen Wang's list right now, is Washington or mar A Lago the incoming president's base of operations. Do we expect him to actually pay a visit, pay a call to Donald Trump? So many other big tech CEOs have done so already.

So far, I would say, so far, we don't know anything about his plans to attend either mar A Lago or the inauguration. As you mentioned, I would, I would, I would stick a pin in that and see exactly what happens. At this point, It'd be very surprising if he does not try to build that bridge to the Trump administration, as you say, So many of the tech

Soon, And indeed he spoke with our own ed Ludlow last week saying if he's invited, he'd love to go. But Peter, how precedented or unprecedented is it for a CEO such as Jensen to be going out to China when, of course he is upping his spending on AVS and R and D do. Lots of other companies when facing this sort of anti trust issue and indeed political overhang, tend to make visits.

Well.

We see a lot of these companies. Remember it was not that long ago that globalization was the standard of business every place in the world. You saw many of these business leaders going to China and other parts of the world to build whatever kinds of global operations that they possibly could. I would say Tim Cook at Apple is another one who very regularly visits China. They have a huge operation there. Of course, their partner Fox Kahn builds most of the iPhones that we use around the

Bloomberg's Peter Elstrom, thank you.

Coming up, data Bricks gets over five billion dollars in financing from lenders. We'll have all the details next. This is Bloomberg software maker. Data Bricks has clinched more than five billion dollars of financing from lenders including Blackstone.

Apollo, and Blue Owl Capital.

According to sources, this would be its largest debt RAYS to date. Let's bring in Brody Ford for more. Brody, what does all this money from this big rays mean for the company and how does it help in this competition? They are going toe to toe with Snowflake. We just had the Snowflake CEO on yesterday. The two companies have really locked horns in this space they're in.

Absolutely.

We've been seeing a lot of headlines with data bricks and billion numbers, a lot of big numbers, big headlines. You might say, what's going on here? The answer is that in a different reality, if we were in twenty nineteen twenty twenty, data bricks would have been public already. But there's a trend right now where these big startups

They say that a.

Lot of these AI startups their monetization didn't work out, and so they're going to try to either bring in the right people or bring in their technology. This allows Data Bricks to one offset some of the tax burden from employees selling their shares, and two just continue to invest in the business in a pretty aggressive way.

And that's what's so interesting.

That they're alleviating the tax burden for employees this liquidity moment they can satiate with the secondary market.

They don't need IPO effectively.

Their funder raise last month was IPO size. They raised ten billion dollars, you know, right, And the fact that they then have to raise five billion in debt to help their employees offset tax burden shows you just kind of the garganguin scale of data breaks at.

This point extraordinary amounts.

That's still a lot of new AI products and acquisitions to be making all things data breaks and bready forward.

We appreciate it.

Coming up, we're going to be speaking with d Wave CEO Alan Barrats as quantum computing stocks face yet another week of volatility.

Are plenty more around.

The company that has risen some four hundred percent since October when everyone got very exuberant about one Willow chip coming out of Google and the movement of quantum. This is really met technology. Welcome back to Blue Meg Technology. I'm Caroline Hyde in New York.

And I'm Mike Shepard in Washington.

It's quick check on these markets, Mike, because look, we've got macro at play in many ways and some cooling of inflationary pressures.

It's interesting the Bitcoin remains on the higher siders.

Resentiments still a little jumpy at some of the tariff headlines. We're at one point eight percent higher for bitcoin. Move on and have a look at some stocks you've got have been keeping an eye on throughout twenty twenty four and now back in twenty twenty five.

It has been a volatile path.

For some of the most highly known but still relatively small quantum stocks. Dewave Quantum Raghetti quantum Computing. We shine a light on some of the moves today because we've got b Riley analyst Craig Ellis really once again affirming a positive view on the sector, the longtime potential, the recent developments offering some encouraging technical advances. He says, of course, this comes on the back of some rather cooling words

Get your first take. Twenty years sound right?

No, right, not rate at all.

So there are many different approaches to building quantum computers, some of them will take many years to mature. But at d Wave we selected an approach that is actually commercial today. And this is a really important point. We have customers that are using our systems today in support of their business operations. So not twenty years but today.

Alan, can you talk a little bit more about those products and how customers are already putting it to commercial use.

Sure, So the approach that we've taken to quantum computing is called annealing, and it's quite different from what everybody else in the industry does. We've been working on this for fifteen years. We're on our fifth generation system. So we have companies like NTT DoCoMo that is using our quantum computers to optimize resources at cell towers, allowing them to support up to fifteen percent more phones per tower.

Alan to follow up on the development and this timeline that is much in debate.

Now.

There is another question hanging over quantum computing, and that is the degree of government support that the industry might need and might be seeing what more can Washington do to help support development in this area.

So government support is certainly important, although I will say that at d Wave we've built our business primarily on commercial customers. We have over seventy commercial customers.

But government support.

Is important, and we've actually got an issue right now. The National Initiative, which is the premier US government funding mechanism for quantum, was passed during Trump's first administration. It was due to be reauthorized almost a year and a half ago, and under Biden it still has not been reauthorized.

So we're hopeful that with Trump.

Coming back in that will be reauthorized to provide incremental funding to the quantum industry.

There have been incremental and significant breakthroughs of late.

They're in quantum.

The reason your shares have been up and to the right significantly since October November December has been the announcements, for example on the Willow chip coming from Google. How seismic was that, because as you articulately to the top, there's lots of different ways doing quantum here.

Yeah, So one of the main issues that must get addressed for what's called gate model quantum computing, which is the approach that pretty much everybody in the industry is taken.

Other than d wave.

We do both a kneeling and gate but error correction is critical to gate model systems.

In fact, there's no evidence at all.

That would out error you'll ever be able to do anything useful with a quantum computer. Well, the Willow announcement basically for the first time showed how error correction could work on a quantum computer at an interesting scale.

So this was a very important advancement.

Why then, and I'm just going to play hypotheticals with you, Why then do you think in video, which actually partners with Google Quantum's team, is casting some sort of shade on how quickly this could be useful?

Ye, because I think that when you're talking about gate model quantum computers, we are many years away.

How many from your perspective.

It could be seven, ten, fifteen, We are many years away. But what Jensen got wrong was that he didn't recognize the fact that there's more than one approach to quantum and so I'm guessing he has in his head only gate model, which has some very significant challenges still to be overcome, versus an kneeling which is quantum computing that's in use today.

Alan, What are some of the limitations that are currently posing a challenge or even an obstacle to further development of the kind that you just talked about.

So when it comes to a kneeling quantum computing, which is the systems that we have in the market today, we are already capable of supporting business applications at commercial scale, but we are continuing to work on growing the size of our quantum computers to solve even larger problems and being able to solve them even faster. Although we can

What's interesting is you got swept up. Your share price got swept up in exuberance when perhaps there were breakthrough is being made in a.

Different type of quantum computing.

We've got plenty of other players all seeing retail investors jump in new exuberance around the next field of innovation.

How has your share holder base changed.

You're offering potentially up to one hundred and fifty million dollars in new shares.

You're making the most of it.

Yeah, So, first of all, I would say that the Willow announcement is applicable to Gate model, and we are building a Gate model system as well, in addition to our annealing system, so that is.

Applicable to work that we are doing.

It's just that with our annealing computers, that's not required today and we are commercial today. As far as financing the company, we recently announced that we now have over one hundred and seventy million dollars in the bank, so we've got the cash we need to execute.

We will always be.

Looking for opportunities to increase that if we can do it with limited delution.

We are very sensitive to delution in the stock.

D Wave CEO, we thank you.

Coming up, we'll be joined by loft Orbital Chief operating Officer Alex Greenberg to discuss the space infrastructure startup's latest funding round.

This is Bloomberg.

Loft Orbital has announced one hundred and seventy million dollars in new funding. The space infrastructure startup helps customers deploy and operate satellites in low Earth orbit. For more on this, we're joined by the company COO Alex Greenberg. Alex, thank you so much for joining us. First, we want to ask you, how do you plan to deploy this latest injection of capital, Where's it going to go and how will it help you.

Yeah, So first off, thanks so much for having me. Really appreciate it and excited for the opportunity to chat with you. So following this round, we're really going to be focused on two key things. First and foremost, we are focused on launching satellites that we have in our backlog for our customers. So we've booked over thirty satellites that we are set to launch over the next couple

Get this to get to space.

And then the second thing we're focused on is actually more before leaning nascent market, but that's the ability to fly our customers AI applications in space. So we have a lot of customers who are not content on just collecting data. They actually want to make their satellites a lot smarter so that things can be detected in real time. And so to do that, they are developing AI apps, and Loft is enabling them to deploy those apps to our satellites as easily as you deploy software to the cloud.

AI knows no bounds, not even I'm interested, Alex, what your customers ultimately want to achieve by going to space, NASA, Microsoft, US Space Force, the European Space Agency.

What are they using your low Earth orbit satellites to really achieve?

There's really three fundamental things that we're enabling with our satellites, so we're not focused on one specific application. We're an infrastructure company that enables our customers to deploy any mission in orbit. But it really comes down to three things. There is connectivity and data, there's national security and sovereignty, and then there's understanding our climate. So we have customers

You've raised a lot of money, a lot of French vcs involved, given the CEO himself as French. But I'm interested as to the competitive nature of space right now and the fact that someone very close to the next administration is pretty prevalent when it comes to SpaceX.

How are you finding your niche? How you seeing the industry evolve?

Absolutely so taking a step back, we started the company eight years ago. My co founders and I had worked in the industry for a while and what we saw is that it just took too long to get satellites in space.

So it can take.

Up to five years from when you kick off a satellite mission to when it actually launches. And for an industry that needs to iterate quickly, that has to innovate, that has to provide real value to customers, five years is just way too slow. And so we set out to start Loft to get customers to space in months, not years, and be the fastest, most reliable, and just simplest way for customers to get to space. So that's really where we differentiate. And I think today what you're

Alex Caroline referred to Elon Musk and his proximity to the president. Of course, his SpaceX is one of the biggest presences in the entire field. Now, what sort of opportunity do you see the incoming administration offering you in terms of expanded business and also what sort of challenge.

Yeah, well, so first off, SpaceX is really changed the game in space by I want to say, making launch a solve problem, but certainly by lowering the barrier for companies like us to get to space. So we're really thankful for SpaceX and their contribution to the industry. I think this incoming administration has a history of being very friendly towards commercial space, so budgets that we rely on for our customers are certainly going to go up, and that's very good for us. But I think space is

Six, Alex, do you foresee expanding more into the area of national security and defense? That really does seem to be a theme of some of the other Silicon Valley investors who have aligned themselves with Trump, and they do see some opportunity, do you as well with the Pentagon intelligence agencies?

Absolutely, and we actually already have so I think we have over one hundred million dollars of contract value in the aggregate with US defense customers. A couple of years ago set up a subsidiary, cup Loft Federal that has the ability to do work with classified customers that's based in Colorado. So we are very focused on the US government, both on the civil side and defense side, as a

Alex Greenberg, COO of loft Orbital, Thank you, Caroline, Mike.

It's time now for talking tech and first up, well, the EU is considering it's spanning its investigation into Elon Musk's X for reaching content moderation rules and social media platform is currently being probed under the EU's Digital Services Act for allegedly failing to tackle legal content and disinformation. Plus, Google is facing its first UK investigation.

Under tough digital antitrust rules.

The Competition Markets Authority is set to decide on whether the US tech john is distorting the market in its search and on oine advertising services. The announcement comes as Google fights and Order in the US sell it's Chrome web browser. Of course, Microsoft has named Jay Perik executive EP of the new AI Engineering Division and it is set to oversee groups on AI platforms and supercomputers and agents. Prior to joining Microsoft, Paric worked at Facebook building are

Up your game of restaurant.

Here we're facing, as we always have in our industry, really a business model where we have pretty thin margins. In the restaurant industry is notoriously competitive. But I think what a lot of people may not realize is that by the time you're done paying your rent and the talent on the team, and the food costs and the insurance and the florists and all the expenses, that only go.

Up over time.

You're not lived with much, and so we're constantly needing to find ways that.

We can become more productive.

And machine learning, it turns out, is really really good at a number of things. It helps us to not only have much better data with which we can take much better care of our guests, buy the proper amount of food, because we never want to run out of food.

And on the other hand, we don't want too.

Much food, have the right amount of labor and talent on the floor, never want to have too little, you never want to have too much. We don't necessarily have the ability to think about that and be very very present to offer great hospitality for our guests.

And so the more that we.

Can find outstanding applications for machine learning AI, what it does is we get to be a lot smarter, but we also need to be better at hospitality.

Which is precisely where you want to be getting better and sticking to that kitchen knitting meanwhile, NGO, you have been applying AI in the real world for a long time, whether it be in academia, and we moved across to really wanted to change up the back of kitchen.

What drew you there? And how quickly have you managed to scale?

Well, we have.

I have been in machine learning.

I did my have PHT in machine learning when I still need to explain everyone what that is. But now i'm you know, since a couple of months almost like just two years, where CHET GPT or Google AI other CHET agents came to market, it's now a big, big hype. Everyone you know has a capabilities now in the chetbot.

But the chetbot, you know, they have their limitations.

You cannot have it drive your car, you cannot have it prepare your meal.

You need specialized AI capabilities.

Such as you know, using computer vision to identify what is going on, machine learning predictions to that breaks down. Okay, what does this weather forecast and this POS forecast and this.

Trade area information mean for my kitchen right now?

In those fifteen million inclements, so my crew can do and deliver the best to optimize those razor thin margins that exist in the restaurant AI.

For this specialized AI. That's what prec taste AI brings to the table. And it's basically also the missing puzzle piece. Why software couldn't couldn't you know, come into the kitchens. Kitchens are often still run like in the fifties, and AI is the missing puzzle piece that can help to bring true help to those kitchen operations.

Danny, you've got some interesting puzzle piece from investments. You've got seven shifts, seven rooms, prescy taste, AI converse. Now, you're a man who's often gone forward breaking boundaries when it comes to tipping culture, when it comes to talking to your own workplace, how have they reacted to artificial intelligence with fear?

With excitement?

Oh, with excitement.

Everybody who we hire is somebody who is a learn it all, not a know it all, and we're all looking for ways we can learn to be better. If you look at the different companies that you're showing right here, each one of these is providing the opportunity to make us better at the thing we were doing anyway.

So there's nothing there that we were not doing before.

It's just much quicker, much smarter, much more productive.

And everybody likes it because once you learn it.

By the way, when you get a new toy, it's if I get a new update to my Apple phone, my iPhone, it takes me a day to get used to it, but once I get used to it, I get exactly why they made those changes, So I don't want to say that the first day we put something

Be preparing, who should do it.

And it's the kind of thing that managers have done an okay of the year after year. But now those managers instead are taking their time to taste the food and make sure it's perfect before a sauce goes out, Danny.

They're taking the time to be with our guests.

Thanks so appreciate having you both.

Pressie Taco Ingo Stare, Union Square Hospitality Group, Danny mar This is Bloomberg,