From Mahart where Innovations, Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
And Caroline Hide at Lumberg's world headquarters in New York and im Ed Lodlow in San Francisco.
This is Gloobag Technology.
Coming up, we'll get the outlook for investing in the tech sector. That's as Gorman saxas that those stocks are poised for an earnings legged.
Rebound, and we'll have the latest updates from Google's antitrust trial. As Microsoft CEO Satya Nadella takes the stand past.
We'll get a read on the state of the EV industry. Some mixed numbers coming out to Tesla and Ribban. We'll dig into those.
In a moment.
We're kind of starting this week, Caroline, much as we ended last week, which is thinking about anti trust and thinking about some of the megacap tech names of the marketly higher and Monday session. The news that we'll get into shortly is that Microsoft CEO Seti and Nadella is understand in the Google antitrust trial that the government has
put on focus on search. The kind of top line is that According to Nadella, it is bogus quote the idea that there is choice in the search market, and we will bring you those details later in the program.
Yeah, we've got to dig in on the edge trust feeling of things and indeed what it means from market. There's been so under pressure just thinking a month is scone of October and as that goes off by what five point eight percent, having its worst month since December twenty twenty two.
So what does October bring? Danny Fisher's with us.
He manages four point three billion dollars in Janis Henderson's Global Technology and Innovation Fund, And really we do have these headwinds, ed pointing out the regulatory headwind, But is there going to be a buying opportunity into technology as it stands for October?
Denny, Well, it's always hard to tell, you know, on a month to month basis, but clearly September was a difficult month and it was a confluence of events as we know, and as Edge just talked about in the lead in the tenure continues to rise. That is generally a headwind for growth oriented stocks just the way you discount them. But then secondly, is the tenure isn't going
up because economic growth is robust. It's going up because inflation pressures continue to persist, and you know, the FEDS indicated that it's going to be you know, higher for longer, and so I think investors needed to digest that. And so where we go from here is, you know, earnings. As you talked about in October brings earning season, it's going to be a tug of war, I would call it, depending on you know, it's going to be a lot
of idiosyncratic stories. And if we just look at the most recent reports, for example, from companies like Adobe and Accenture that had August quarter ins Accentures was much more muted, definitely some more macroeconomic headwinds associated with their results. But then Adobe that has some you know, unique drivers and it's business and is on their front foot with AI, actually put up very very nice numbers and you know,
expectations to be strong going forward. So I think, you know, it's just it's going to be a case by case basis.
At any one session, a market does not make I get that. But let's show the megacaps again. You know, Alphabet at one point eight percent, we talked about AI. We know about the macro picture right now, the kind of acceptance that rates will be higher for longer. But did the share prices on your screen have any basis or priced in reflecting antitrust? What's happening in the courtroom right now? Is there any investor concern at all?
Yeah, well, there absolutely has to be. And what's interesting, the one name that isn't on that screen is Apple. So if we look at them, you know, Google, Microsoft, Apple, they're all intertwined in this as it relates to the fault search and it's really really important because Google effect actively pays Apple.
An exorbitant amount of money.
There are many different estimates out there at what it is to actually be the default search provider on iOS, and that you know is, you know, those are the most important consumers in the world effectively, and so it's a very very virtuous relationship. Microsoft would love to be able to compete for that business, given their investments into being and particularly what they're doing, which at GPT now as well.
But the reality is, you.
Know, Google's been able to you know, quote unquote corner the market, and that is the government's case is that Google is exercising market power or Alphabet is exercising market power in this default relationship. The hard part though, is you know, I mean, Apple's the one that is actually kind of the toll taker here in terms of actually dictating the terms. But also it's a result of the idea that Alphabet has the best consumer experience for search.
So it's not as though consumers are being harmed by any means. That's where the antitrust laws and these cases are evolving because are very different than what we've seen historically.
But this is interesting for you in particular, Denny, because you look at your portfolio, right, you have some exposure to Microsoft and to Apple. Which one are you're most concerned about? There are a number of possible outcomes, of course, but which one carries the most risk based on what you just outlined.
Yeah, that would be Apple because Apples generating these what are called traffic acquisition costs from Alphabet today. Yes, they're one hundred percent gross margin, they fall straight to the bottom line, and that's money that Apple can reinvest into its business and would be a material earning set if they actually weren't able to capture that today Microsoft gets nothing, So Microsoft could pay twice the amount that Alphabet pays to be the default search provider, and it would actually
be incremental to the business. The challenges being doesn't have the critical mass and so they don't get the same advertising density in the same return earns on advertising spend that Alphabet gets.
So there are a lot of.
Things to think about. But it's all upside for Microsoft. It's you know, could be downside for Apple and clearly would be downside for Alphabet if the most onerous outcome actually came to Fruition.
And what's been so interesting, Denny about the timing of all of this is that, well, Alphabet Search is having a run for its money from a competition perspective from generative AI, and many had wondered whether BING would suddenly come to the fore with a power of open AI. All the names that you're putting your attention on. When you have such a large exposure to Microsoft things number one, but you've also got nvideo in there, You've also got
a course ASML. All these companies have an AI uplift. Here is it priced in yet?
Do you think?
Well, actually, with the market, you know, it's interesting coming into this year, nothing was priced into these stocks as it related to AI, and then we got a lot that was actually priced in. And now you know, if we actually look at the estimates and the valuations of these companies, they're actually all still fairly reasonable. I mean, if you go back to September of twenty twenty two, the market expected in Vidia to earn somewhere around five
dollars in twenty twenty four. The market now is expecting in Vidia to earn sixteen or seventeen dollars in twenty twenty four, meaning the estimates have gone up three x and the stock actually hasn't gone up that much. So you could argue in Video is cheaper today than it was in September of twoenty twenty two. Despite the move, Microsoft now is back to one. It's one of its, you know, most reasonable valuations that we've seen in some time.
Google or Alphabet still trades sub twenty times arnies. I mean, so there you look at these they're not egregious by any means, and the fundamentals actually continue to be just fine for all of these companies, if not robust in some of the cases like in Vidia for example, and to Inder, say.
Fields as though you are aligning with Goldman a little bit here in terms of yes, valuations might ostensibly look quite high, but actually, when you're looking at the fundamentals of this business, actually there's still relatively opportunities, is certainly
what Goldman sees when we're looking towards earnings. Where is the risk factor when you're looking sort of at the companies that are being eroded by the opportunity of AI, where isn't deploying it fast enough, thick enough at the moment from your perspective.
Yeah, absolutely, you know there are companies that are we sort of go through this exercise of draw line down the middle of the whiteboard and who's on the right side of time and who's on the you know, the wrong side of time of AI?
And you know, we we.
You know, I mentioned Adobe earlier as a company that you know, it was actually, you know, if we go back nine months ago, was viewed as being clearly on the wrong side of time. And as they've been able to actually communicate with the street more clearly as to their product roadmap and actually deliver on products and put up results, the company is now firmly on the other the right side of AI. And so one of the things that I think is really interesting in this market.
You know, we have the obvious winners, and I think we have some obvious losers, and then we have some companies that maybe are perceived as losers that they can move into that winner's bucket, and we're really focused on trying to find some of those as well.
Benny Fish, Janis Henderson, we love the winners and losers conversation here on Bloomberg Technology, particularly around AI. Thank you now coming up here on the show. The trial of Sam Bankman Freed is coming up this week, and we're going to be joined by Duke University's Campbell Harvey about the significance of this trial for the industry. Somebody that the defense called upon and said no to testifying this
is Bloomberg. Sam Bankman Freed is getting ready to go to trial for what prosecutors alleged was one of the biggest financial frauds in US history. For more, I want to bring in Campbell Harvey, professor of finance at Duke University, who was asked to be an expert for the defense in this case. And Professor Harvey, you declined to give expert testimony. Why why did you decline?
I have to admit I was very tempted because it's such a fascinating trial and to be teaching my classes from the courtroom on zoom could be pretty entertaining for my students. But in the bottom line, there were a few reasons that I declined, and probably the biggest reason is that if I do this type of testimony, the deal is that I tell the jury what I believe, and that usually wants me out.
So why would that be a problem. You know you've been The idea would be that you have been called in as an expert witness, right to assess a bigger picture rather than of the individual action. Why would that be a problem.
So it's often the case that experts are engaged to support the point of view of whoever's hiring them. And given my reputation, which I consider very important, I'm just going to tell what I believed, and this was going to be a big time commitment, and it's not my main job. My main job is to do research and to teach at Duke University.
Okay, so let's dig in to what you believe.
Of course, if you were being potentially called on by the defense, it would be well to defend what has occurred in the world of decentralization. But ultimately what your argument is is that, well, this wasn't really a decentralized finance problem going on.
This was a more old school problem going on.
That's correct. So people believe this is a crypto problem, and there are some connections here, but this is like a traditional finance problem. This is a problem where you've got people running an exchange that have no idea as to how to run an exchange, no experience, no experience in risk management, and most importantly the co mingling of funds, which is the main thing in the case where client
money is used to bail out edge fund. So these are problems that could happen in traditional finance, but given the crypto is essentially unregulated or a lot of uncertainty of our regulations, many of these exchanges exist offshore. So FTX Finance are examples of exchanges that are offshore to avoid the regulatory oversight, and that creates problems as we've seen with FTX, But it's not the only exchange that suffered due to failures in risk management and other things.
Professor, from the experts and founders and builders that we speak to in this space. At the moment, it doesn't feel as though the regulatory environment is exactly tempting people to continue to build within the United States. In fact, it seems as though more are being driven offshore. Is
that a risk at the moment? Is there some way in which the United States could be more attractive to ensure that while people can interweave themselves within crypto, they can safely use in exchange and indeed whether they use it as an asset class or a way in which to develop technology.
So we're in a bad situation right now because there are very few regulations and whatever regulations, it's kind of like regulation by enforcement, and given the uncertainty as to what the regulations will be, many companies are deciding it's not worth locating in the US. And no country wants to lose their best ideas to some other country. So I do think that there's a risk here that innovation does move offshore.
And the next.
Big thing in this space is not trading like with FTX and exchange, where you're treading bitcoin or ether or things like that. The next big thing is how this technology is deployed in regular companies. So the top companies today and this is the idea of Web three where this technology can enable many things, so we're not possible before. And one example I like to give out is think of your computer. How much of the CPU and GPU
do you use a day? Probably less than an hour, So why not rent out the other unused capacity and get paid for it? And that's what web three is able to do. So I'm actually quite concerned given the harsh sort of regulatory enforcement yes right now, the lack of regulations, that we cannot participate in this innovation. We have two disruptions going on right now, AI and this decentralized technology disruption.
Professor Haffey, you'll offer a book DeFi in the Future of Finance that was published summer twenty twenty one. Had you been able to carry on your writing through present day, quickly, what impact has SBF had on the future of DeFi as a standing point in history.
So what's really important to understand is that SPF and FTX is not defied, so it is centralized finance. In decentralized finance, you don't give custody of your asset to anybody. You're the person that holds custody. You do not delegate and with FTX, customers delegated their custody and then allegedly those funds were taken and used for a hedge fund, the so called co mingling. So decentralized finance is sharply different.
And I think that this whole scandal within FTX and the other bankruptcies, We've had many crypto bankruptcies and almost all of them are centralized. These are an exchange FTX or lenders that were not experiencing in lending or risk management. So I think that this actually shifts the focus away from kind of centralized finance to decentralized finance.
Camill Harvey great some time with the professor of finance at you University.
We await as well starting tomorrow.
Time.
Now for Talking Tech, first up, Google will make its Chrome Book laptops in India through a partnership force with HP.
Now. The deal is viewed as a win for all parties.
Google can further compete with other PC makers production in India, can have HP avoid potential curves on imports, and India of course gains more production value from big tech companies. Meanwhile, go to the UK now talk Talk is selling its business to business unit to a subsidiary run by its main shareholders, valued at roughly one hundred and sixteen million dollars. The deal comes as part of the British telecoms reorganization plan announced last month.
Talk Talk is working against looming debt.
Maturities which need to be refinanced in coming months.
Plus, in an effort to test its.
Capacities in a musk, live streamed himself playing four on X formerly known as Twitter of course now. The feed lasted fifty two minutes, of which the first few minutes were spent setting things up for the helpers and staff. A concurrent audience of thirteen hundred viewers they tuned in with twenty.
Thousand total by the end.
Ed so want to be watching in terms of capacities, And there's been plenty of other sort of announcements coming from X today.
Yeah, it's interesting.
I think there's also a partnership with Paris Hilton and eleven eleven Media for fashion related video content, signing to get a sense of the developments on that platform.
Now, Sati A.
Nadella, the CEO of Microsoft, is calling out Google for its stake in the search market. Nadella took to the stand earlier this morning in the Google antitrust trial, leaving no doubt about his perception of Google's dominance. He also warned the judge in this case about how artificial intelligence could give Google an even larger lead in the search market. He basically said Carroe that they're being choice in the search market was a bogus quote idea.
Yeah.
I think he's also been, of course, one of the key people behind the drive to make being something substantive in the world of search when it was first launched with them Microsoft, and but they couldn't get that.
They didn't get there. Now there might be.
Lots of reasoning and blaming as to why that wasn't the case.
Per Suddenly he's going to be trying to.
Give context to the idea that maybe they couldn't muscle in and even offer even more.
Money than Google to Google than Apple.
Was currently being potentially an offer to be that sort of a competitor on the space.
Yeah, let's get more context from anam Agarana Blueberg. It's had a senior tech analyst and anaag what do you make of this? There is choice, it's just a consumers just using one browser.
Right, Yeah, Well, to be Honest, when I read the news, I was laughing because only a few months ago, Certia went on, you know, with a massive offense with the with the browser wars with his you know, open AI and then the AI for being and.
Google's market cup.
You know, took quite a bit of loss in those weeks to follow, and now he's saying that these guys have an advantage even in AI. So it's pretty pretty amusing to me.
I mean, he went on to say that Google could extend their search dominance into n AI, ANOROG and that hasn't been the feeling on the day to day discussion.
I mean, as we've said time and time.
Again, this timing of this trial is interesting given the run for its money Google seuch as getting from general to AI.
Yeah, you know, And one of the things I talked to a lot of investors about is, you know, when you look at something like an Apple, Apple has Apple Maps and it's pretty crappy and I've never used it. I still go out and open up an app that has Google Maps in it to do any navigation. Now, if for whatever reason, if I don't have Google default search on my browser on my phone, I may be forced to download an app and that I can use search that way.
At the end of the day, Google Search.
Is far better than anything else that's out there, and I think that's what Google is trying to make a case here.
Crappy a technical term, and rag Ranald, we love it. Thank you very much.
In the from Bloomberg Intelligence, Welcome back to Bloomberg Technology.
I'm Callen had in New York.
And I a love like in San Francisco.
Vian is now down to tens of one Percent's been kind of trading way over the place it actually be in terms of production and deliveries in the third quarter by some distance. But it maintained guidance fifty two thousand units this year. And I know a lot of investors that we speak to on this program carry they go, come on, Rivian, you can do more than fifty two thousand. You got on paper the ability to do much better than that.
The market kind of.
Shrugging its shoulders at this print at least.
Yeah, it's been a mixed bag, to say the very least to digest this morning. And let's get into that bag a little bit more to dissect the quarterly delivery and production data used to welcome Dana Hall, of course, who.
Covers these companies and start with Tesla.
Dan, I was to the reason that we saw this drop off in deliveries in production and what it signals going forward.
Yeah, so the drop off was forecast by CEO Elon Musk on the July earnings call when they basically said that they were going to have factory downtime as they prepare for the cyber truck in Austin and really as they rolled out the refreshed Model three at Shanghai. So we knew that this was going to be a soft quarter. I think Wall Street knew it was definitely a miss compared to what our consensus was. But the market reaction
today has been pretty flat. I mean it was sort of down pre market and now it's actually trading slightly above. I think the big news is that the company reaffirmed their guidance for the year of one point eight million units, and that is you know, people are excited about that the company is going to have to pick up the pace. Though in terms of having a record fourth quarter.
There's a load of debate about the true story down time for the assembly line so they can tool up for next gen Model three cyber truck.
Or is it or is it a demand problem?
Or is it a demand problem? That's exactly where I was going to go.
Is it a demand problem?
I mean, I definitely think that with high interest rates and inflation, you know, buying a car is a huge purchase. And I say this as someone who is like driving a Beat or Subaru that I've had for seventeen years. You know, it is it is a big, big financial decision for many families and many people. So you know, some people are concerned that the factory downtime is obfuscating a demand issue. But you know, we saw Rivian beat, right, and I mean the arc of the future is electric
is electrification. It's just the macro is definitely a factor.
You know, interesting to compare and contrast. You more than anyone on the planet, almost covered the sort of early days of Model three ramp, Tesla's first mass production model. Rivian's doing comparatively quite well in its first sort of eighteen months production. It's just that they spent billions of dollars to do it, and Tesla did it with no money at.
All, right, and a lot of people who work at Rivian were instrumental to that Model three ramp, So they've learned their lessons in terms of how to make.
A ramp go.
Well, yeah, I mean I think it'll be a really interesting fourth quarter to see what happens.
You know.
The challenge the Tesla faces is that everyone in the United States is like, where's my refreshed Model three? So they need to kind of clear out that inventory. And our opinion column is Liam Liam Denning has an excellent column today on this as well.
Looking at some of the analysis in response to some of these numbers. You know, Rivian is seemingly sort of a positive news story. Ever, core Issi coming out with an upgrading to overall where they think this business is going to go, they go from to an outperform from Inline. Ultimately, how are they setting themselves apart from a brand appeal perspective here from the bazaars to make these big sort of scale purchases with a Rivian rather than with a Tesla.
Well, I think that their their strategy is really interesting. I mean, they are clearly squarely focused on the pickup truck market, which is where Tesla has lagged. A lot of people are wondering where is the cyber truck We've seen photographs of the truck kind of around the San Francisco Bay area and in Texas, but they actually haven't like handed any over the customers yet. So the truck up, the pickup truck market is clearly where Revian is focusing.
But then Revin Rivian also has this incredible deal with Amazon for the delivery vans, and that's not a segment that Tesla has played in at all yet.
All right, Bloomberg's down a whole everything, ev, but real focus on those Tesla numbers, thank you, all right. JP Morgan over in London is hosting its Tech Stars Leadership Forum, which basically brings together companies and investors to hear from the industry's top players. Earlier today, we had an exclusive conversation with JP Morgan CEO Jamie Diamond.
Have a listen.
It's a living, breathing thing. It's going to change.
They're going to be all different types of models and different types of tools and technology.
But the way to think about for us.
Is every single process, so errors, trading, hedging, research, every app every database.
You're going to be applying AI.
So it might be as a copilot, it might be to replace humans. You know AI is doing all the equity hedging for us. For the most part, it's idea generation, it's large language models, it's no taking while you're talking to someone and whiles taking notes and may actually say to you that here's the thing of interest to climb by Peterson, all error, all customer service, it's a little bit of.
Everything that it is going to replace some jobs.
Of course, yeah, but I look, folks, people have to take a deep breath. Okay, technologies always replace jobs. Your children will live to one hundred and not have cancer because of technology, and literally they'll probably be working three and a half days a week. Technology has done unbelievable things from mankind. But you know, planes crash, pharmacies get misused.
There are negatives.
This is one of the biggest negative of my view, is AI being used by bad people to do bad things. Think of cyber You know, Henry Kistenero talks about warfare, but you know the fact and I do think you know, eventually have legal guardrails around.
It's kind of hard to do because it's.
New, but it will add a huge value. And you know, for JP Morgan, if it replaces jobs, and we hope to redeploy people like at First Republic. You know, we've offered jobs to like ninety percent of the people they accepted. But we also you know, we've told them as we some of those jobs are transitory, but we hire thirty thousand people a year, so we expect to be able to get them a job somewhere local and a different branch or a different.
Function if we can do that.
So and we'll be doing that with any dislocation that takes place as a result.
AI the biggest tech companies prop up a huge chunk of the SMP.
Is big tech too big to fail?
I think as a too a question, you know, I think in any industry, Uh well, you say too big to fail, which I've lost touch with it. That really means anymore because remember car comes are bailed out and these things are bailed out, and you know, I don't understand they should ask what they want. If the regulars don't want a bank to ever fail again, then we should do ABC, D and E. If that's the well,
I didn't think that was the goal. I think Dodd Frank actually accomplished most of the goals, which is dramatically reduced to risk, create liquidity, capital stuff like that.
So and big tech you got to be very specific.
You know, sometimes companies misuse their position and sometimes they don't. Sometimes regularly is captured and sometimes they don't, you know, but they're they're powerful, you know, and we have to deal with I've been writing about you know, big tech going to our business. We got fintech, but we also have big tech, and they will embed payment systems in there to some we're going to white label banks kind of what Apple did you know they have the right to do that.
I'm not against that.
I would be against unfair use of their position to dominates in a business.
Well, Apple is going to we're into financial services. Do you worry about the bank of Apple?
I wrote about it. I wrote about like five years ago. You know how you like, what is a bank? Well, I will get to compete, so they have they have a tough competitor. But you know they hold money, move money. Uh that you could put money in a basically you know markets, but it's a white labeled checking account, credit card.
Uh, you know all these things. Yeah, they're a form of a competitor.
You know, we also partner with them, but I'm very used to partnering and competing with lots of people.
Existential threat.
I don't think it's an existential threat, but I think if we were complacent about it.
Yes, the World of Frenemies with JP Morgan, Ce and Jamie Dimmond them. Meanwhile, coming up, we'll have more from that Tech Styles Leadership Forum in London with that girl JP Morgan.
That's coming up.
This is Bruebag Technology.
It's time for the VC roundup and first Up. Dozens of Japanese startups, ranging from software outsourcing companies to translation gadget makers, are preparing to list on the Nasdaq in the next few years, seven of them in just the
next few months. The trend follows a number of entrepreneurs turning away from an aging risk averse home market over in Japan and Canoe entered into a purchase agreement with a foreign strategic institutional investor for an investment of forty five million dollars with potential for upsizing to one hundred and fifty million dollars. The closing and sale are expected to occur as soon as possible. Plus Sequoia managing director roll Off Bota applauds the changes at X formerly known
as Twitter. He spoke exclusively with Bloomberg's Emily Chang in London.
Have a listen.
My first job opportunity in America was given to be by Elon and it was to work for X dot com twenty three years ago. So it's an interesting full
circle that it comes back. We ver enthusiastic about X. I think the things that have happened at the company in terms of changing the structure, streamline decision making to get much more rapid product evolution, record usage levels on the service, a reinvention of the business model, full transparency on content, moderation and veracity, and so we're very enthusiastic about the future.
And it's early days and enthusiasm being shared from Techtles Leadership Forum. It's happening in London at the moment, and we want to have not just a conversation about what's happening in some private companies, what's happening in public world as well. From the event is Matt gel his head of EMEA Technology Investment Banking for JP Morgan and just we have some excitement of this transition from private to public once again.
We've just had what one.
Two, three whole IPOs of size here in the United States. How is it looking at amea level at the moment, Matt.
Oh I think it's a similar level of optimism. It's been a long wait for the IPO market to reopen. We actually did have two tech IPOs in Europe happened earlier this year, but it's really the Europe looks to the US capital market to gain excitement. It's the deepest capital market in the world, and typically it opens up six months or so ahead of Europe for the tech indency, and so having those IPOs get out, get away, and
get done has certainly raised enthusiasm here. And we can just see on the floor of this conference we have about fifty percent more people here than we had last year. There's definitely a much more positive outlook from everyone you talk to. So we're not out of woods yet for a tech recovery, but you can definitely feel we felt that we've hit the bottom and we're going upwards from here.
Matt arms us listing was kind of like a starter gun moment here in the United States. Caroline just went so deep on that IPO day in New York City. But for you guys in Europe, was there a psychological blow to arm choosing to list in the United States rather than in London or in Europe.
No, I don't think so.
I mean, if you think about ARM, the heritage of the company is a British founded but global business who then took some time off the capital markets to be owned by a Japanese company. What's great for the European ecosystem As ARM was able to list, it was able to list with huge demand from institutional investors, and it set itself up for great success in the capital markets. So when we think about European companies, we think about growing them and having them.
Hit the capital markets.
Where they choose to go is something each company needs to make a decision for itself. So long as they've got access to the capital markets, that's a great thing for the European ecosystem. So there might have been some handwringing here or there among some politicians, but for bankers, for lawyers, for consultants in the ecosystem, we're all super excited that got done and it really should portend well for the tech ecosystem in Europe going forward.
What sort of areas of growth can we expect then companies going public? You mentioned there have been a couple I'm thinking not to Mattacre is probably one that you're discussing.
And I on us.
These are companies that perhaps didn't get quite the exuberant of pricing at the top end of the range and then bouncing on the first day. How do we get excited about what's to come out of.
Europe map Well, I think, you know, some of it has to do with you know, just as that capital markets start bounding. If you think about the IPOs that have happened in Europe, and you mentioned ionos that happened very early this year in a very different market, we're now in a position where the major industries are up mid mid to high teens, in some cases more than that,
so there's a much more receptive investor environment. The next thing we're looking for is for investors to be making money on the tech IPOs, because when that happens, that means you're going to see more IPOs.
And then as you.
Start to see the US tech IPO's work, we're going to see more happen for the European names. I think what we'll see for European technology companies is the companies with global revenues are increasingly looking to the US, and that's so primarily the software businesses, some of the fintech businesses that are based here but have a global footprint.
The more internet digital media businesses that have a European focus still really see the European capital markets as being attractive, but more so with a look toward twenty four versus twenty three.
Yes, Matt, it's been an astonishing year for your industry. You forget that we started with the collapse of Silicon Valley Bank and in the UK and you're at particular, HSBC moved in really quick to take advantage of some of the vacuum. Did JP Morgan benefit from the SVB collaps Were you able to come in and find new areas of business in the tech sector.
Yeah, I mean, pre dating the Silicon Value Bank collapse, we'd actually already started to really ramp up our offerings for early stage technology companies. We'd already been doing that for companies Series C and Series D. At the latter part to last year, we started ramping and offering for companies from Series A onwards. So we were very focused on supporting the tech ecosystem from early days, not just waiting for the IPO to come in so certainly Silicon
Valley bank struggles. Maybe you woke up some people at vcs and some technology companies that they needed to diversify their banking relationships and being able to go to JP Morgan here in Europe and get access to our offerings on a global basis. I wouldn't say that hurt us by any stretch. It probably just raised the profile and maybe accelerated our ramp by a couple of months.
L JP Morgan, great catch up. Get the perspective from over in London in Europe. Thank you very much.
It's going viral. You'll have seen the pictures of.
Sphere Entertainment's latest venue in Las Vegas, and it just opened on Friday with a show by the rock band You two other high profile events our schedule for the rest of the year.
People are going wild for this event.
Alice Attending, calling it a revolutionary leap in Live experiential company says it expects final construction costs of the arena arena to be pretty mammoth to two point three billion dollars. Shares though rallying hard today at sixteen percent in US trading ends.
Let's stick with Live entertainment, the world of but here in Silicon Valley. It's the tenth season the iconic lee By Stadium in Santa Clara, next to its noisy neighbors Apple alphabet pairing of Google, and it's been a big decade. There's a big decade to come. Alguido San Francisco forty nine as president, joins us on set. You know, we always talk about the impact that big tech companies have in Silicon Valley. You guys are right in the heart of it, and you've put out some data on the
dollars flying out of the stadium. Just run us through what you've announced.
Yeah, I'm super excited to announce this morning that Levi Stadium and it's ten seasons has generated two billion dollars of economic impact in our region, you know, employing nearly twelve thousand people over those course of the ten years. And I think, really what's amazing in that is two years of that was really impacted by a global pandemic where we didn't have live events. So I think about it as only eight years and now looking.
Forward to Super Bowl and World Cup, we're really excited.
The big story of the year for Caroline and I is this huge economic phenomenon called Taylor Swift?
Have you heard it's for my daughters as well.
I have three daughters fourteen, twelve, and ten. I know all about friendship bracelets.
Yeah, so fantastic.
You guys had a tour date in July for Taylor Swift. But now looking at what's happening on social media, did you guys feel that economic effect from Taylor Swift?
We absolutely did thirty three million dollars in fact of that, which is the largest concert we've ever seen. I've never seen anything like it. She is a force to be reckoned with, as we know. And look, I think that is to me, it's a microcosm of the power of life. Sports and entertainment is back coming out of the pandemic. We all thought, is this the pandemic bounce?
It's not. It's here to stay.
We talk about what seat we're seeing in the streaming world with people watching it. We talk about what's happening in stagums with people going it's never been better than it is right now.
I mean, we'll see when the Chiefs come to town how that happens. Like sole thing so the games, but more how are you trying to ensure that you're at the cunning edge when we just see the swhere. For example, I know when I was up there in the ordering my beers at the forty nine Ers game, I was doing it all through an app and that felt really ahead of the time in twenty sixteen.
How you continuing to iterate as you look towards the next ten years.
It's a great question, Caroline, and we're going to spend about two hundred and fifty million over the course of the next ten years at Levi's stating updating and enhancing it not just for the fan experience, but frankly for the events that are come. We were awarded Super Bowl sixty, which will happen in February of twenty twenty six.
We were all also awarded the World Cup.
In the summer of twenty twenty six that will not happen obviously in any other city outside of the Bay Area. And for that, you know, our fans, and not just our fans on forty Niners game days, but fans around the globe are wanting the best technology, They're wanting the best content, they're wanting the best experience.
So we're going to continue to.
Advance our invest our dollars to make sure that happens.
And I think when you're thinking about the experience of artificial intelligence and all the ways that you can adopt, I mean, you're not only serving as president of San Francisco forty nine Ers, but you're also part of a consulting firm where you're at elevate. Really think about how other companies are adopting all of this. It's happening quickly enough. Do you feel that really owning that space?
Yeah, I think it's a really I mean, as you know you report on every day, it's an evolving space. And I think sports in the ecosystem that we see around it right now is to get to a point where we can increase the fan experience on game day.
But frankly, that's only seven.
Hundred thousand people that come to San Francisco forty nine Ers games. If you think about the forty nine Ers ecosystem from a fan base perspective, we have over ten million fans across the globe. So we think about our spells as a sports and entertainment franchise that's really global in nature, and we need all these technology firms to help us reach those fans wherever they are.
For example, the rights that you have in the UK international marketing rights outside of the stadium, how are you going to grow revenue in eyeballs? Is it a streaming fust strategy because you will sit bound by the NFL.
So yes, we're bound by the NFL as it relates to media rights, but we're not bound by the NFL as it relates to sports and marketing rights and rights and marks in those markets.
So Ed, you're absolutely correct.
The San Francisco forty nine Ers have rights to Mexico and London today and what we're doing in Mexico. We played a game there in Mexico City last year where we saw tremendous fan engagement I think the highest gate in NFL history as it relates to a international game.
Played on the England side. In the UK.
Not only does San Francisco forty nine Ers own Leeds United which is in the championship now, but we are activating daily. I know we have a global watch party coming up for our game we're playing this Sunday night in prime time against.
The Dallas Cowboys.
So again it's all about reaching those fans wherever they are.
Ritz they love football and all its forms and guys is al Guido.
We love it.
Thank you, President of San Francisco forty nine ers. Great to spend some time with you. Meanwhile, look that's it for this addition of Bloomberg Technology ED what a fault?
Yeah hour, We have got fast out to the to the week exactly recap on our podcast where yougate your podcast. You can find it on all the Bloomberg platforms as well as Apple, Spotify, and iHeart. FROMSF in New York City, this is Bloomberg Technology.