Chips Stocks Still Down and Tech Earnings Preview

Both the I m F and the World Bank are warning of a potential global recession. This as tech earnings kick off next week, We're gonna preview what to expect, and the markets are spoken about the Twitter deal as well. Investors seem to see about a six chance that Elon Musk still closes by October. What will become the social media platform once that happens. We will explore that this hour. All that in a moment, but first I want to stick to the chip story. Now, chip stocks down their

lowest since joining US. Now wugin Hoe Boomberg Intelligence, Senior analyst for Hardware and Networking, So a disappointing start Wuginhoe ahead of you know what could be a potentially difficult earning season. We've already already had these warnings from A m D and from Samsung. Where is this going? Sure? I thank thanks simily so so UM. I think the A m D as well as the stamp sub warnings UH is a precursor to what we may potentially see

for earning season. For the upcoming earning season, I think that the risk here is is not on the consumer side. I think the consumer concerns on the PC side UM has already been factored in. I think the bigger risk going through into earning season is this going to affect the enterprise side on this chip side. We haven't seen that yet, but if we look at the m D data center numbers, they weren't as strong as people as hoped.

They were more in line than anything else. And and the concern is that it's going to affect more chip makers on the data center in cloud side. So is the chip downturn far from over? I mean, is it just starting? But it potentially could be. Right if we start thinking about enterprise bending going going forward, UH, if there is a downturn going to three, then then there is that risk of downward learnings revisions to reflect the

weakness on the enterprise side of the ledger. Right, UM, I still don't have a good crystal ball on where the PC sector is going to bottom out, and I think we're gonna have to start seeing, uh where the the enterprise side is gonna flesh out as well. Now, of course, these you know, new round of of American curves on China's access to US technology. How that, um, you know, potentially make a bad situation worse and and

how does that play out over the longer term. Sure, I don't think it's going to be a near term impact if if anything, it's gonna be a longer term impact. The band or the curbs on the AI side. Isn't there anything new? This is something that m D as well as in video hinted at at one of the a K filings U back in September. And this makes it more official than anything else. And I believe I am D as well as in video said the impact will be minimal because they could still sell lesser um

lesser powered AI chips to to China. Now, now that being said, I do think that the the U S do does want to send in broader curbs UH to slow down China's development of not only the use of AI chips, but also the manufacturer of AI chips. There were some developments by by Smike of introducing seven animator chips. I think that put a scare UH and into the US and they want to slow down anything that China can do to develop some of these higher powered UH

chips going forward. So it doesn't sound like you think we're heading towards a total ban, but you know, is that a possibility. Well, let's let's use UM. Well, let's use whahwah as an example of as well as et EU. There is an entity list that they're on UH and UM. At the end of the day, whilwah is a smart phone business. Essentially has UM pretty much died, all right?

If if there there is a an entity list that the US has started to beef up and we might start seeing H some of these lesser known Chinese memory companies as well as chip manufacturing companies UH fall into that entity. If that's going to be the case, then then there might be a dent into the China China's chip manufacturing UH initiatives going forward. So I mean, we'll case, we still have to see where this will go, but that still may happen. All right, Well, a lot of

rad for chips to start the week. U Jin Hobe, Bloomberg Intelligence senior analysts, thank you so much for stopping by. Now. Speaking of China, we're following the COVID situation there as well, tally's rising and fears of a potential lockdown returning once again. The country reported one thousand, eight hight seven cases for Sunday,

the highest since August. In Shanghai posted the most new local infections in almost three months, official saying anyone traveling to Shanghai will need a negative COVID result within twenty four hours of arriving in the city, and we'll have to do three tests in three days. Coming up a bit more than a coin tossed Cowan analysts pricing in a sixt chance that Ellen Musk's deal with Twitter gets done by the deadline. We're gonna dig into the odds next.

This is Bloomberg. The glimpses we've had of Elon Mask's vision for Twitter include potentially becoming part of what he calls X the Everything app, which brings to mind the Chinese app we Chat. Quick takes out were talked to us about the obstacles Twitter will face if it tries to become while like we Chat. Take a listen. Elon Musks billion dollar deal to buy Twitter is back on and it comes with an interesting wrinkle, turning the social

media company into a so called super app. Now, this is what the Chinese company we Chat has really pioneered. It's a portal in China for everything from dating apps to paying your bills, ordering food and getting taxis. But it hasn't really succeeded in Europe and the US, and there are often three obstacles. Firstly, you need to have a payment layer, something that connects all of the apps together and makes it easy to pay in one quick action. Secondly,

you need to have a lot of developers. Twitter has about two million users, but there are about one point eight billion active users of Apple devices and three billion active users of Android devices. If you're a developer or a company looking to build a product, it's pretty clear which of those three services you're likely to prioritize. And finally, there is the regulatory consideration. If you are a company that leverages its strength in one service, to build strength

in a different one. That is not something that regulators, particularly in Europe, look too kindly upon. But it also comes with a slight problem. Either you are not big enough for developers to have the scale that they want to build apps and services for your product, or if you do have the scale, you're going to attract that regulatory attention. Perhaps Ellen is the person who can make this happen, but it does come with a lot of obstacles.

Cutics alex Web, they're sticking with Twitter merger arbitrage strategists a cow and say the mark is pricing in just a bit more than the odds of a coin. Tash that Ela Musk still with Twitter, will close by the court issued deadline of October. Here tell us more about the latest Bloomberg's Kurt Wagner, who has has of course been covering this whole pograah for us. We're gonna get to the weach that thing in a moment, Kurt. But what do you make of this whole six chance thing,

especially given it has been a short thing to this point. Yeah, I was trying to think of something clever about form me once, you know whatever, But to me it feels higher than sixty simply because you know, both sides are showing up. They want the same deal, right, They want the same price, at least that's what they say, And now a judges said, okay, you have until to do this and a lot of the stuff getting debt financing in order, for example, getting shareholder approval, that's all done. Right,

So they say they want the same deal. They say that all the stuff that they need to do to get that done is essentially done. So I feel like it's got to be higher than sixty pc, Emily, But you know what, what do I know? I feel like we've been talking about this for six months and it keeps changing. So right, what do any of us know? Well, Elon Musk knows, or at least he has said he wants to make Twitter part of this Everything app vision. What does that mean to you? How do you interpret that?

Does it sound to you like we chat? It sounds a lot like we chat um. And it's not necessarily a bad idea because we chat is incredibly popular in China and we've seen other companies, mostly Facebook, try to do this as well. Where I think it's an issue is that, as Alex said in kind, of the intro you showed, Twitter just doesn't have the scale that's needed for for something like this, right. And most of what makes we chat so valuable, I think, is that it's

also the place where people do all of their communication. Right. It's not just where you get your Uber or you order your food delivery. It's where you're talking with mom and dad and grandma and your boss and your cousins. And like, Twitter is not that place right there. It is not a place that people are hanging out. And so for me, the idea of suddenly turning into a place where everyone is hanging out and suddenly doing their shopping,

it just doesn't really make sense. Again, I like the idea and concept because it's see it clearly works in China. I just don't think that this is going to happen for Twitter now. It is ambitious and if anyone can do it right, you would say, all right, well maybe Elon Musk is that person. But Mark Zuckerberg's trying to met a few times and it's not happening there either. So speaking of scale, how are you thinking about potential

staffing changes once Musk presumably takes over the company. You know, is there going to be a mass exodus. Is there going to be an influx of of you know, Elon Musk's fans who want to work for him. You know, clearly the size that the company is can't necessarily handle, like you said, the scale of a social media platform, the size of wei chat. Well, I can tell you what I know, and then I can speculate a little bit. What I know is that a lot of people inside

Twitter are currently worried for their jobs. Right. They expect Ellen to come in and do laughs. They expect them to essentially kind of clean the executive ranks um you know, certainly Ceo Pragaga Waal, probably the head lawyer Vigionatti and you know, this is something that happens a lot of times during an acquisition, but I think especially now because Ellen has basically said he doesn't have competence or faith in those leaders. Right, So this is this is what

people are bracing for now. What he does next is going to be a good question. Is he going to trim the company down and simply keep it sort of the engineers bare bones folks who are going to build product, or if he wants to do this kind of super apt thing he's talking about he's gonna need partnerships people, He's gonna need probably content people like moderation people, right, which is is something that he has kind of shied

away from. And so that's where I think things get a little tricky, is you know, the financial vision for the company seems to be let's cut everything back and and maybe you know, get healthy, as he likes to say, um, but the vision is much more ambitious than that, and I'm not sure that Surly works with that small of his staff. All Right, lots continue to follow a Kurt, I know you'll be all over it. Thank you for

the updates. I want to get a quick check on another story that we're following, which is several airport websites in the US we're knocked offline by a pro Russia activist group. Chicago's O'Hare and l a X among the websites hacked. The group, called kill Net, has been linked to a series of cyber attacks against Western targets, including

disruptions to some state government websites last week. Curology, the cosmetics company that provides prescription skincare customized to patient skin, has grown at lightning speed over the last few years. With revenue projected over two million dollars. The company is now profitable and announcing changes to its c suite to prepare for the next phase. Dr d with Larger, co founder of Curology, stepped down as CEO to pass the torch to Heather Wallace, who was most recently president at Revlon.

They're both joining me now for more on the transition. So, David, I want to start with you give us some background on the transition here and who popped the question and how oh thank you Emily. That would be me who popped the question. And the reason is that the skills you need to successfully found the company are just very different than the skills you need to take an established company like cure Ology and grow it to its full potential.

And so you know, right now the company is in this incredible position for the future because um, like you said, we became profitable and we really have the ability to invest. And so my goal is just to find someone to help take us to that next level. And I just

couldn't be more excited to be able to found Heather here. Heather, given what you learned recently at Revlon, what's your vision for the company and you know what you know about what's going on in in the beauty world, especially given that we are moving into potentially a pretty pronounced down to earn. So I mean a couple of things. One is I'm so sorry excited to be joining Curology, and Carology is actually doing what many baby companies are talking about,

which is personalization. So it's truly personal personalized skincare. We are connecting people with dermatology providers that create custom formulas and we can service those consumers and really help them have better skin outcomes. And so people, your face is the way that you face the world, and so how you look and how your face looks really has a big impact on your confidence, on how you feel um and and truly a big impact in your life. So

I'm excited about that with the Ology. Now. You know, as terms of what's happening with the economy, I think where we all are concerned about that this is an incredibly resilient category um and I do expect us to be able to do very well during this time period. I want to agree that good skincare is vital, but how much do you think people are really going to be spending on themselves right now when they're spending more on everything from gas to groceries. I mean, isn't that

the first thing to go you It's actually not. Um. There are many things that go before skincare. So I've actually seen data over time on UM what happens during challenging economic times, and skincare is one of the most resilient categories. The end of the day, as you say, you know you're going to work, you're in front of friends and family, You're putting your best face forward, and it is very important, and so I do expect consumers

to still spend in this area. David. The cult of the founder is so strong, and especially in Silicon Valley, and I'm wondering if you've You've been pretty straightforward about why you're doing this in now, do you think too many founders stay too long and that more founders should

leave potentially sooner. Every company is different, but but I do believe that you know, the decision to pass the baton, as you say to someone like Heather, should actually be made a lot more commonly, because ultimately what we care about is getting our business to that next level, and the same person to successfully found a company isn't necessarily the right person to get you to that next level. So so I do think there's um um there. There's a lot of merit in that um Heather, I know

that Revlon recently filed for bankruptcy. They're talking about supply chain issues. Curious if you're expecting to deal with some of those similar issues at cure Ology, especially as it pertains to the supply chain and what you learned there that you can potentially apply here and head off some of these challenges. Yeah, so I think when it comes to cure Ology, our supply chain is really focused in the US, and so it's much more simple. We are providing products end to end, but it's a much more

simple supply chain. So the other thing I know is that just keeping us focused, so keeping us focused on the right and the core of the products and being able to continue to do our personalization and our customized formulas at scale is going to be where the focus is.

So let's talk a little bit more about that. What's your hope for the next chapter of growth given the rise in direct consumer skincare, the rise in personalization, as you say, the rise in subscription services, but also the fact that we're you know, some people might be paying for a few different script subscription services. Um, you know at one time, how do you how do you see balance consumers balancing all of that, and curology winning out.

So the company was founded on the mission of access, that consumers should have access to the kind of skincare solutions that the best dermatologists can provide. And so as we think about growth in the future, it's all going to be about continued awareness and access to those providers. And the more access and awareness that we can create,

the more consumers we can bring in. Where the the largest player in the personalized skincare space, but we are relatively small at this point compared to the twenty billion dollar facial skincare market in the US. David, what are you hoping to see in this next chapter and how involved will you be? I will be stepping into the position of board chairperson, and you know, ultimately the most important thing is that Chology succeeds, and so I'm going to be helping in every way that any way that

I can. UM But you know, the biggest thing for me is that we have this this really huge opportunity in front of us because I think if you talk to almost anybody who's used cure Ology, they will tell you there's no way I'm going back to using what I use before. But when you take a step back and look at the market, about plus percent of people

are still using non personalized, less effective skincare. And so what I really do hope to see is just us being able to continue to spearhead the market shifting towards the more effective, personalized type of skincare that the best dermatologists provide. And speaking of the market, Heather, I mean, are you thinking about an I p O. You know, in terms of the next phase of growth? You know,

who knows what the future will bring. I think we're going to be focused on profitable growth and reaching more consumers with our fantastic customized solutions UM and the better skin, the more better skin outcomes, that will just unlock the future possibilities. All right, Heather Wallace, the new CEO of Curology, and Dr David Lusher, co founder of Curology, moving into the role of chair. Thank you both for joining us. Welcome back to Bloomer Technology. I'm emily changing San Francisco.

I want to turn back to the marcus As, heads of the I m F and the World Bank warn of a rising risk of global recession. This with advanced economy slowing down and faster inflation forcing the Fed to keep raising interest rates. What does it mean for tech stocks and tech earnings coming up? I want to break that all down with Michael Casper of Blue Brig Intelligence. So what do you make of the macro environment, what's

happening here and what it means for tech stox? Michael, Yeah, the macro environment is still somewhat strong for what it

is a technical reception right now. Um, just to give you some context around the SMP earnings at large, we were looking at about a two point five percent expansion in three Q. It's still an expansion, UM, and that's gonna be a the trough, or at least looks like it's gonna be the trough, at least according a consensus um for this earning cycle, and specifically with tech stocks, Tech is looking to have about a seven point five

percent earngas contraction. That's only second worst to communications and financials, which are tied with the twelve point one percent to client um. And some of the tech stocks are specifically some of the industries look to be under pressure here given the rising dollar and some of the supply chain concerns that linger. Now the World Bank is saying there's a real danger of worldwide contraction. You've got Jamie dime In saying market is going to fall another twenty percent.

What's your own research showing, well, we're seeing much lighter contraction. Right, So if you use our fare value model and use September slow as the price and try to back into what earnings contraction was priced by the market, you're looking at about a five to EPs to climb that was

priced in by that September. And the varying scenarios have to do with the different rates that drive ps, right, So if you get a five percent expansion or five percent interest rate, you're looking at about a five percent earning strop to accompany that. And by the way, that would be pretty much right in line with the narrowest earning strop that we've had across all the recessions historically back to UM, in line with that recession, which coincidentally

was a very inflationary period as well. So we've got a raft of tech earnings coming out next week. Uh, Netflix will be kicking us off. Of course, we've got you know, all the big tech penning's quickly to follow. What are you looking at and what are you expecting? I'm looking at the outlooks for companies, especially the makencaps.

Right now, the makacaps are expected to have about a two earnings increase on medium to the top five tech and tech related stocks test slide through Tesla in there um and that would be the worst going back to one. So I'm watching the outlooks on those make acap stocks within tech. I think Semmy's is particularly interesting given given the chip news today. UM limiting exports to China and that's industry is forecast for about fourteen percent to clients,

so there's still lingering supply chain issues there. There's the pressure from the latest announcement from the Biden administration, and Semmis looks to be under some considerable pressure here. You know, how do you think whatever we see from these earnings could set the tone for the rest of the year. I mean, given what we're seeing in chip stocks good so far, if we continue to get some more bad signals, I mean, you know, does that spell doom and gloom? Yeah?

It wouldn't necessarily be good, especially considering if you're looking at the SMP five hunder as a whole tech in discretionary stocks, you're supposed to lead the way out of this kind of mild earnings reception that we're having right now. Um. And you know, if if that doesn't materialize, at least on the tech side, which is a huge driver. I mean, we're talking about indexes in those top five stocks. If we're looking at some weakness and tech stocks, it will

translate overall weakness in the SMP five d um. But so far, I will say, at least on the earnings front, companies have done a pretty good job making the best out of a bad situation with margins. All right, Michael, Well, thanks for giving us your view, and good to hear someone who's a little bit more optimistic than other Michael

cast Bar of Bloomberg Intelligence, appreciate it. Meantime, another story that we are watching, shares of Riveant declined after the e V makers that at a recall about thirteen thousand vehicles delivered to customers after discovering a minor structural defect with a nut that could loosen fully in quote rare circumstances. The company said it's recalling almost all vehicles delivered to customers, even though the issue was discovered only in seven out

of an abundance of caution. And speaking of evs, Amazon just announced it will spend a billion euros over five years to electrify it's delivery fleet in Europe. That money will be used to double the number of evs in Europe to ten tho vans and fift electric heavy goods vehicles or so they call them. Bloomberg. Spencer Soper, who covers Amazon for US, is here with more. So what

is Amazon hoping to accomplish, Spencer with this announcement? Yes, so basically Amazon sending a message to the market, Uh, you know, start producing more EV vehicles because uh, Amazon can't find enough of them. Um and you recently that You're segment that you just had about Ribby in particular, shows they don't like to be wholly dependent on one particular company as well. So they buy from Ribbian, they

buy from Mercedes. They want more people in the market producing these things, and they just want more of these electric vehicles produced. Uh you know. As as a bottom line, how do electric cars fit into Amazon's plans to get to uh net zero. Yes, so Amasa really hasn't said precisely how it's gonna do. This's a very lofty goal, you know, net zero emissions by but the most visible

thing has been electric vehicles. They're on the road, you see them, um, And they're going to have to address a lot of other things in their company like uh, you know, airplanes and ocean liners and those sorts of things that are still very fuel heavy, but they're electric vehicles. Is really the predominant part piece of their of their push so far, and so talk to us about the other parts of the other potential parts of their push.

How else are they going to get to that zero? Yeah, there there were some interesting things in this announcement in Europe where they even talked about making deliveries you know, on electric bicycles and even by foot. And they also talked about expanding their network in Europe, their warehouse network

in Europe. And I think there's also setting a message with that as well that they want to make sure that is particularly it's a delivery station, they want to make sure that it's equipped with charging stations for any type of of you know, non or low emission vehicles that they that they might be using. They want to make sure that the infrastructure that they have, not just the vehicles they have, but the infrastructure they have is

capable of charging these things. And how is what they're doing in Europe compared how does it compare to what they have done so far in the United States? I mean it pretty much is the same is the same model, um, you know, just a big investment in electric vehicles. But this is the biggest announcement they've made by far in Europe. So they're trying to send a message to Europe, say, listen, what we've been doing in the US, We're going to be doing the same thing, same thing in Europe and

following the same playbook. All right, Spencer, soaper always good to have you with us. Thank you Spencer for those updates. Thumbs up. All right? Coming up the long crypto winter? How much longer is it going to lask and what do we make of all the recent crypto CEO and other executive departures. Would have talked about that and more with Hunter Horsley bit Wise Asset Management CEO. That's next.

This is Bloomberg time now for our Crypto report. And as global markets are awaiting US inflation data Thursday, I want to take a look at the global wave of monetary tightening to fight inflation and how it's spurred a near six slide in bitcoin this year. Will bitcoin break it's twenty dollar mark anytime soon? I want to ask Hunter hoares Ley about that and more. He's the CEO of bit Wise Asset Management. Hunter. Good to have you back.

So let's start on markets. What's your read as we head into the fourth quarter, and there seems to be just more and more bad news. Yeah, it's been. It's been a tumultuous year in markets broadly, and certainly certainly in crypto. I think the current you know, recent numbers this year, the NASDACS down, O smps down, and cryptos down or thereabouts. It's changing every day. So the story

of this year is definitely a bear market. Uh. Nevertheless, we've seen increased interest from from our our client base, and I think that the backdrop for many crypto investors investors is that they're historically have been four year cycles. Uh. And while there are opportunities to make money in many moments of the crypto market, bear market moments of the moments where fortunes can be made, and so there are some that are positioning themselves in the current bear market

UM and UH and coming into the space. Now, So what do you think it'll mean for crypto ultimately? Does bitcoin break that mark for example? Yeah, you know, I can't say for sure about about twenty UM and certainly it's a space with with quite a bit of allatility. But the historical pattern of cryptover the data we have about twelve years of a journey, is that we get

four year cycles. We get three years of bowld markets with growing momentum, and then we get a bear market year, so the market down almost, the market down north and this year obviously the market down around. The expectation if the market you know, continues its historical trend would be that we begin a new cycle next year. And so wherever we wind up this year, a lot of investors are thinking about how that positions them for the next cycle.

You're out with a new Web three fund that will give retail investors exposure to companies across Web three, UH, finance, the metaverse, the creator economy. As we barrel into a recession, what makes you think investors are going to jump on board. Yeah. So at bid wise, we view our role as helping investors understand and access the opportunities in crypto. And certainly there are a wide range of important things going on in the world today outside of this space. It's our

job to stay focused on this space. Specifically, we've been doing it for five years. We work with over a

thousand financial advisors, branches, UH and institutions. And what we saw with the web was an emerging category of opportunity around the established innovators, established companies who are positioned to benefit from the rise of Web three, from the environment created by crypto and so we view it as our job to recognize worthwhile opportunities and open up access to those UH and so that's why we we introduced we

introduced the Web three product. And in general today there's there's quite a wide aperture of different areas that investors see opportunity in the crypto markets, quite different from you know, even even when when we started the firm and the story was mostly just about just about bitcoin. Now there's been a number of high high profile crypto executive departures see es. The CFO of open Sea recently left. What

do you thinks behind all of this. You know, I think zooming out it's a it's a difficult time in the economy, and crypto is not bigger than that, It's not excluded from that. And in fact, you know, crypto is more volatile in general, and so I think it's natural to expect that you would see that you would see turnover and that you would see adjustments with the firms in the space. We've been around for five years, UH and in that period of time alone have seen

many many of the players change. UM. I think it's a healthy part of the progression and the maturation of the space. But in thinking about what it means the average UH, the average investor who's interested in the space doesn't have a ton of time to UH to focus on on everything that's going on day today. I think that the real the real learning OFO is that it's starting to really matter who you work with, or what platform you use, or what app you use, and not

all of these things are created equal. I think in there's a sense that if you invested in something, it didn't really matter where you bought it or how you bought it. You had it. You had a shot at at a great return. I think this year, what's becoming more clear is that it matters. It matters who you're working with or what service you're using to invest. So I think that that is the implication of this for

most investors is paying attention to to who you're working with. Now, I'd love for you to put your social media hat on for a moment. You used to work at Facebook and Instagram earlier in your career. I'm sure you've been following the Twitter Musk saga to a certain extent. Elon Musk and Jack Dorsey we now know from their text. Uh, you know talked about making Twitter and open source protocol. Uh. What do you think about a decentralized vision for Twitter

and if something like that is really possible? I think it's possible. I think it's exciting, and I think it's an experiment we're going to see a play out in the next in the immediate term future. Uh. In fact, there's a there's a project called Forecaster that's already attempting to build a Web three version of Twitter where you

can have a similar communication experience. Um, but you don't worry about the sort of corporate policy and the moderation policy because the information is on a blockchain, and then

the app just pulls information from that blockchain. So I think the game is a foot on this one, and I think zooming out it's it's sort of indicative of the moment we're at in the crypto space and with Web three, which is there are now a huge amount of developers, there's great funding, UH, there's proven technology, and I think over the next two years you're gonna see a big wave of attempts to build UH in sumer applications,

to build services that people use UM. And I think I think the Twitter scenario is front and centers as one of those in Web three. So it sounds like you see this pretty clearly. Can you explain what this actually looks like and how how do how do things change for the average Twitter user? What happens to Twitter, for example, if everything is decentralized. I think, you know, some people just don't understand, like what are they what do they really mean? Here's here's the mental model i'd offer.

In the current world, your followers, your your your audience is only available on Twitter. So whatever Twitter does is law UH, and sometimes that that is is a downside for certain users. The decentralized Web three version. I don't know exactly what it will look like, but it will look something more like the way you think about your email, which is, if you're not happy with Gmail, you can move to a Well. If you're not happy with AO well and you want certain features, you can move to

Superhuman uh and so on and so forth. You can take your email address, you can take your your your contact book with you, uh, and you can go somewhere else if you don't like the way that the app is being built or the policies of the app. And so that's that's what people are striving for here. When you hear people say a Web three version of something similar to the dynamic and power structure that exists with email,

they want to introduce that to more parts of our life. Uh. And so you know, I think you could use that as an analogy for how uh it might change certain services like Twitter. Interesting. Well, thanks for humoring us there, Hunter Horseley, CEO. If it wise, Asset Management would love to have you back sooner rather than later. Hunter, thank you for stopping by. Apple is set to shift from the lightning charging port on the iPhone and other devices to USBC to abide by a new European law. What

does this mean for the company's wireless first future. Let's bring in Mark German for more. So, let's let's rewind a little bit, because when they change that lightning charging port, it was a little traumatic for some people. What exactly is Apple doing now and what does it mean for

iPhone users? That's right, Emily so for most the two thousand's right, Apple had what was called the thirty pin iPod connector that worked on all their main iPods, and it was also the connector that was on the iPhone until the iPhone five. With the five, Apple moved to lightning.

It's much smaller, it's reversible, it's all digital. It made sense as things were shifting more wirelessly, right, But now we're getting to the point where USBC is taking over the tech industry, and now the European Union is pushing USBC because it's interoperable between Android devices from Samsung, from Google as well as Apple to ices. Right now, the

iPhone still uses lightning. That means you can't use the same charg or to charge your iPhone as you can't even with your iPad pro or your maclopro or your Android device. So, because of some prodding from the European Union and because it just makes sense for consumers in its ecosystem, Apple will move to USBC next year in

three with the iPhone fifteen. They'll also move it to some of their math accessories that still use lightning, some of their iPhone accessories like the mag Safe battery that use lightning, and probably most critically, the air pods, which also still use lightning. So overall, it's a very good move for consumers. I think what does it mean though, given that Apple really wants us ultimately to not have to use any wires at all. Yeah, no, that's a

good question. So about five years ago, Apple announced the device called the air Power. What that was was a three device charging matt from the company. It was announced in seen was supposed to go on sale and it would allow you to inductively charge an iPhone, air pods, and the Apple Watch at the same time. Many technical issues I won't be labor right now, that never launched, but Apple still wants to push users towards wireless charging.

The latest MacBooks they all use Mac Safe charging, right. You don't stick an actual cable into the device, but it uses somewhat of a magnetic inductive charger called mag safe. The iPhone has mag Safe charging, the Apple watches mac

Safe charging, the AirPods have max Safe charging. So while the lightning connector and the iPod thirty pin connector before that both last at about ten eleven years for the respective ecosystems, I think USBC is going to be the Apple connector for the next five years, and then we'll see a much bigger push to inductive charging, mag safe and wireless in tropical boat inter propability. All right, Boomer smart German, always appreciating you keeping us update on all

things Apple. Thank you so much for that. And that does it for the sedition of Boomberg Technology. Do not forget. You can check out the podcast anywhere you get your podcasts. I'm Emily in San Francisco. This is Bloomberg