From Mahart where Innovation, Money and Power Collie in Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
I'm Caroline Heine, Bloomberg's and World sid quarters in New York, and I'm Ed Ludlow not in San Francisco, side by side for the last time this week, and this is Bloomberg Technology coming up.
Look.
Microsoft poised the clear it's final.
Hurdle for its sixty nine million dollar takeover of Activision.
Blizzard. We'll dig in.
And the UAW expands its strike against GM and Sotlantis as talks progress with Ford.
We'll give you those latest details.
Plus iPhone fifteen.
Hence the shelves around the world today we'll get the read on.
The state of demand for Apple's new products.
The UK Competition and Markets Authority is essentially green li now microsoft sixty nine billion dollar purchase of Activision. They've looked at the compromise, which is to sell cloud gaming streaming rights to Ubisoft, the Paris or French based video developer. Earlier on Bluemberg Television, we had the UKCMA CEO on to react to that decision.
Have a Listen, the.
Content creation remains with that division, but the ability for Ubisoft now to take independent decisions about how that content is the distributed through third parties. So we know sort of previously Microsoft control and limit the distribution channels for example, that doesn't happen. Now that's all within the unilateral control of.
Ubisoft CMA CEO.
There. Now let's dig into well the ongoing narrative of this story. Mark Bergen is standing by in London and I mean, we still got months to go until it's formerly green lit.
But you think we can read the tea leaves that this is going to be good to go.
I think my impression is that microsoftops by October eighteenth, so that's even less than a month. But you know, these things, as always are up in the air, and the regulatory environment, and certainly in the UK and Europe can be a little bit more unpredictable when it comes to tech.
You know, Mark, at the beginning of the summer, I don't think anyone thought this deal was going to go through, and they overcame the regulatory hurdles here in the United States. Now the UK CMA was the final hurdle. What was the CMA's argument or commentary on why they felt Ubisoft was a good enough compromise.
I think this is a really interesting concession, and from my understanding, it's like they're basically looking for a third party that's not Microsoft here that can be making these decisions around around cloud gaming. If you buy that the Microsoft thesis, and certainly like other companies like Google have tried and probably will continue to try in this world of cloud gaming. Having giving Microsoft it feels like giving
Microsoft control of that. If you if you have Uboseelf involved, then you have this third party company, a French company that can sort of deny the ability for Microsoft to manipulate the market.
Microsoft Bradsmith in particular comes out saying that they're still going to be working towards this October the eighteenth deadline, as you point out, Mark, But what a different environment.
I mean, this has been a.
Year and a half since they first wanted to get this ninety five dollars a shared deal done.
What's changed?
I mean, it's still the business basis remaining the same.
Is it's still all about mobile gaming.
My impression there's an armchair of political analysis here, which is that the CMA was sort of the only organization in the US in even the EU, which is typically sort of a much more willing to block these sort of deals, gave the green light. What's happening here in two months in London is the Prime Minister is holding this big summer around AI, this focus on AI safety, but also trying to build out the UK as at
home to innovation and industry. I think it was certainly seen the messaging for Microsoft is that if the CMA blocks this deal, that is very counterproductive to the ultimate aims, and so that probably was maybe one of the factors in this redirection here. And I'm sure we've we've done some ex and my colleagues have done some excellent reporting
on what went on behind the scenes here. We saw this morning that I think the activision price is now back to where it would have been initially paid, which just means a lot of lawyers made a lot of money in the past year and a.
Half and they always mart Bergen, thank you very much. Indeed, go have a good Friday night.
Meanwhile, let's talk about what's happening elsewhere in terms of relationships between private and public. UAW expanding its strike against the lantis En GM as I was just saying, Look, the un union, in fact has announced that it's made some real progress with Ford in talks over a new labor contract for more.
Let's bring in Bluemos, Gabrielle.
Coverla and Gabby, we will try and put the tech lens on this. And you did it so expertly last time to shining a light and how much ev transition is an issue for these car makers. What do you think is the part of why Ford's making progress here?
Well, I think Ford traditionally has had a better relationship with the UAW than the GM or Stilandis. The company has said they spend about a billion dollars more on labor than GM Orsialandis, and I think a big part
of that is they have fewer temporary workers. And that is a key difference because there is basically a second class of workers in America's auto plants, and that is these temp workers who you know, they start out at about fifteen seventy eight sixteen bucks an hour and they talk out at twenty whereas if you're a full time worker, you start out at around eighteen dollars. If you can
talk about at thirty two dollars. So for in some ways, Ford was already there, but they are still making significant concessions. They agreed to cost of living allowances, basically inflation protection for the workers. That's something that went away in two thousand and nine of GM and Chrysler and bankrupt. Ford agreed to put it back. That was a major thing for the union. And also another key thing is the union.
Sean Fay, the UAW president, said, for the first time in history, the union has won the right to strike over plant closures during the course of the four year contract. Now that's a big deal because if you think about the ev transition and the push for you know, lower cost and lower labor costs. You know, there's been a lot of new auto vans, you know, coming up to Mexico. People all three of these companies are making electric cars in Mexico, at least some of them, you know the
books saying it's made in Mexico. RAM has some of their delivery vans electric being made in Mexico. So, I mean, the UAW, I think, sees the writing on the wall and they are really.
Pushing hard to stop that.
And with four they've made some progress. I don't know if they're going to be able to pull that off from gmrs. The land is but more in at a certain.
Open Gabby Sean Fain's kind of big picture argument has been billions of dollars from the Inflation Reduction Act is going into the infrastructure. The companies can take that, and he's basically saying, like the labor has to go with it. You know, you have to you have to take some of that money and invest in the workforce long term. My question is, like net net, do evs require the same number of jobs on the assembly line as a combustion edging a combustion engine card does well, you know.
There's been studies that suggest that no, you know, they do require fewer workers, especially when you think about you know, longer ready to make engines you know, or you know, some of the transmission that you see in a combustion echin. But you know, I would argue that we still don't have a really clear picture on that. You know, it's still early days in this, and there are you know,
there are new jobs. We look at the billions of dollars in investments, you know, the companies are making to build battery plants in the United States, know, I think GM has talked about they're actually bringing more of some of their kind of powertrain work in house so they can have a place for union workers to go to and the EV transitions.
The Lands has talked about that as well.
The question is what kind of jobs will those EV jobs be, and that you know, that question is crucial to the u a W members. It's crucial also to our national politics. And you know you saw that, you know, former President Donald Trump has come in the Detroit next week. This morning, Sean Grain officially invited President Biden to come
visit the picket line. So whether or not these future EV jobs are good jobs is critical not just to the UAW and you know, these workers stand there living, but also it's going to play It's going to be a huge issue in our you know, presidential elections for the whole coming years.
It's just a huge topic.
Bloomberg's Gota Coppola out there in Detroit. Just so good to have you here on Bloomberg Technology bringing us the breaking is coming out from the show. We're going to talk about the broader health of the tech sector with Denise Chishom Fidelity.
I love having Denise on the show. This is Bloomberg Technology.
What a week.
Whether you're looking at the FED, whether you look at the UN, whether you're looking at IPO windows, but notably also whether you're looking at money being drawn out of the stock market. We're seeing the S and P five hundred having the most amount of funds come out since we understand in December.
That's according to Bank of American Merrill Lynch.
But let's dig into whether that's really coming out of the tech sector, whether it should be Denise Chisholmers with us. She's Fidelity head of Sector Strategy.
Denise is great to.
Have some time with you, and I'm just interested as to when we've seen quite a hard shell off in the last three days.
Today we steady a little bit. What do you make of these valuations?
What do you make of a NASDAC basically was almost an oversold territory or down at almost thirty.
Yeah, when you look back at the short term volatility we're seeing now is exactly a surprise given a really strong rotation we've seen in the overall market and then obviously an economically sensitive sec like technology, So a little bumping around over the short term isn't really a surprise given the strength of that move. I think history can help a little when you sort of step back and
zoom out. What's likely to happen in the future and not the past is one hundred percent predictive of future performance. But the stronger that cyclical rotation into economically oriented sectors,
the more likely it is to continue. And the reason behind that is it's more likely that when stocks have moved as strange as it seems, when earnings are actually currently contracting, stocks more often than not get it right and earnings do in fact recover, and then the risk reward for those cyclical sectors like technology actually is still positive.
Hey, Denise Carrot kick us off with let's play a game of technology risk factor BINGO.
Because you read everything out, so you add the IPO window.
We had China most recently the FED and then some economic data in the twenty four hours that followed that said the Fed's going to stay the course. What's BINGO for you? Like, what is the biggest fact that you're thinking about as it relates to tech.
Yeah, I think it all has to come back to earnings, and that's the biggest factor one.
Sorry, So that's my pick for.
Bingo earnings, not any of that. I mean, I think that the FED. It's interesting when you think about interest rates, and I think people do think that they're very, very correlated to technology stocks. And it's not to say that they're not over short term periods. We obviously saw that in twenty twenty two. But when you think about interest rates, it's a very shifting correlation because the why behind higher
rates matters more than the level. Meaning when rates are actually rising and growth is accelerating, then the technology sector and the stock market overall really has had little problem with higher rates. The problem comes in when you have higher rates and lower growth. Now that's where we were
in twenty twenty two. So I think that you could be looking at a very changing correlation where rates and the FED were the only variable that you cared about as an investor in inflation to a situation where that might be more or less in the rear view mirror and earnings needs to be the focus because if earnings are going to recover, then interest rates and even valuations is much much less predictive when you look at history.
What's so interesting is I'm interested in where you think earnings I mean, upon us till what October thirteenth, I was just immniant JP Morgan.
They sort of.
Tends to kick things off in the banking sector. Got a couple of weeks to wait, We've just had a name big in your town. Clavio come to the market, Boston born and bred and now publicly traded. It's now trading what at thirty two thirty three dollars versus its pricing point? But where do we look for the investment opportunities within technology because it all seemed to be about AI.
At one point.
Yeah, I don't know as much as it was about AIS. We certainly saw the move and the stocks. I mean that is more of a forward earnings story. And for me, when I looked at the historical pattern, as much as people were talking about it being all about five stocks, really the historical pattern that we saw in technology is fairly typical when you actually see an earnings contraction in
the stocks move before earnings growth does. And that's the trickiest part about looking at multiples or looking at valuation to see if whether or not that this move is done, because more often than not, trough earnings is coincident with peak multiples, and that isn't a great predictive factor when
you look at forward earnings. So the biggest moves that you have seen in the technology sector from a forward perspective when you're saying net revisions be positive, is in semiconductors and software, and I think that that's the area of the market that investors would qualify as expensive. And the problem with that expensive is that it's usually not
a problem historically provided that earnings recover. Now there is valuation support within technology, and that's more in the hardware sector, so it's a little bit of a across the board. The catalysts are slightly different. So for valuation support, you actually don't have really the earnings momentum that other areas have. But the places you have earnings momentum, you don't have valuation support. But that isn't necessarily negative.
Learning from the earnings window just gone. You know, you think about Video and Apple, what they had in common twenty percent of sales coming from China, and they both kind of were talked about in the context of long term risk China. What's happening politically but also technologically right access to technology markets. What does your research there tell you about the risk in China.
Yeah, from a long term perspective, I think that we've had a lot of risks in a lot of sectors over a lot of years. I mean, what you can see when you look back in the historical data for technology, and we've got data going back to nineteen sixty two, is each cycle, margins have been higher and higher. Right, So this secular trend has been fairly consistent, which is not to say that there won't be risks in the market.
And in some ways I'm the wrong person to ask that question, because what I really focus on is not all the things that could go and trying to discount that back to present or even future earnings. But really I concentrate around what is being discounted in the stock market because we've seen and even over the last year, we've seen this tricky scenario where stocks can advance quite rapidly despite the fact that there is bad.
News and that's the wall of worry.
Right.
So when you think about risk from China, how do I as an investor know if that's a wall of worry issue or a real earnings hit. And I think, in some ways, instead of sort of trying to figure out whether or not it is is to think about what the stocks have discounted.
Let's go from the wall of warry and end on a happy note. This Friday, Caroline talks about claviy. I just wanted to ask you about Boston and for you to have the opportunity to give a shout out to the tech sector in Boston.
Yes, I will definitely give a shout out to the tech sector in Boston.
All right, Well, that was short and sweet. We love it.
Denise Chisholm, facility head of Strategy.
Thank you.
Caro yea, all eyes on. What a global text story.
Meanwhile, let's just go over to what we've been seeing the home today. I cycled past the New York shop of course store as you might call it in America of Apple and the new iPhones.
They're on deck, the launchers there. Tim Cook was in town. It was busy, The cues were enormous.
What does that signal about ali appetite for these particular new phones.
I phoned fifteen in particular.
All right, time for talking tech and first up in the news Canio. The logistics arm of Ali. Barber's planning to file for its Hong Kong IPO as soon as next week that according to sources, this would make it among the first of the Chinese tech firms units to go public. The company's sargoning a raise of at least one billion dollars in the share sale, and the Biden administration is limiting expansion in China by chip companies getting
federal funds to build plants. In the US, the announcement comes as the Chips Program Office is getting ready to give about thirty nine billion dollars in grants and seventy five billion dollars in loans and loan guarantees. Plus, Amazon will run ads on its Prime Video service in key markets to help offset rising costs. Following the example, of course, of other streaming platforms that are looking to further monetize
their content. The company says AD supporting streaming will be the default on Prime Video in the US, UK, Germany and Canada starting early next year.
Caroline, another one bites the dust.
Meanwhile, the iPhone fifteen, those watches they officially went on sale today in the latest test for resilient consumer demand here in the US and globally, and it's all about Apple's devices. We're going to see how strong the start has been. Let's bring in Bloomberg's Mark German and Mark. I cycled on my way on my city BikeE passed the one right by Central Park today and the queues were enormous.
That's typical though, right, Yeah, we're.
Actually seeing lines that are a bit longer than we did the last few years. Obviously, we had a few pandemic years, so that sort of sucked the wind out of you know, lines at Apple stores. But clearly and seemingly the line are bigger than the past two years, based on everything we're seeing from Mumbai to Sydney to Japan to Los Angeles. Clearly there's a little bit more
momentum here. I think some of the reason is maybe some of these people tried to pre order online but they were quickly meant with delays into mid November or even later in some regions, so they had no choice if they.
Wanted one on day one to line up.
But clearly there is a strong amount of momentum, at least for the new pro phones this year.
So here's the questions, right, the holiday season's key, So do you frontload, do you buy it now or do you wait? And then we call it iPhone fifteen? But they're four handsets to choose from. Do they go Pro, Promax or Base model.
Yeah, I think the Promax is actually especially important this year. Obviously, they removed the one hundred and twenty eight gigabyte tier that was the base tier for the phone in terms of storage, that was eleven hundred dollars. Now they're starting at twelve hundred dollars by eliminating that tier and starting with a two hundred fifty six gigabyte model, and that has additional functionality in addition to the bigger battery and the bigger display. This new five X zoom on the
camera for the telephoto ones. So I think we're going to see more people than typical upgrade to that biggest size for that extra camera improvement.
Mark great to have for your expertise, online lengths and everything else.
We appreciate it.
Welcome back to Bloomberg Technology. I'm and Dadlow here in New York City, one last day.
Meanwhile, I'm karenin high Let's get a quick check on these markets on this Friday play day. We're seeing currently up a percentage point. Now's that one hundred managing to get a little bit of risk appetite creeping in towards the weekend. Now there aren't catalysts, whether it be some slightly weaker economic data that means the Federal Reserve could potentially hold for the rest of the year. Many are
betting on at least one more hike. But for now, we get over the Federal Reserve hunt day and move towards actually been of buying in the ten year yield. We of course have been at high's for years on out, but we're currently at four point four point four let's call it. On the tenure, We're currently down by some six basis points, so a little bit of appetite.
Having seen those yields push wider.
I'm interested with the China story, though, Crane shares that's particular The next that I'm looking at up almost four percent. These are internet names in China that are traded over here in the United States and they get a bid because actually, maybe tensions are easing a little bit between US and China. There's going to be working groups discussions, particularly at the Treasury level, between the United States and China.
Could that be easing some of the heated conversation we've been having of late.
Move on to the individual movers PDD doing well on the back of that Meta platforms.
Interesting by note coming from City as we look ahead to meta Connects next week and.
I'm looking at Warner Brothers Discovery.
Not a huge amount of news lines around warners today. We're down by some thirty percent worse performer on the last that one hundred. Maybe we look towards whether those striking actions, particularly between writers could be alleviated a little bit more on the state of discussions.
Another favorite risk asset of choice of ours here on the program, of course, is biggwen. I just checked it's still at almost twenty seven US dollars for token. One of Europe's largest cryptocurrency asset managers, coin Shares, is actually looking to expand here in America with the launch of a hedge fund division. Fortunately with us on set talk
through it all Gean Marie Magnetti Coinshares CEO. One would imagine that if you're launching a hedge fund here in the US, there is demand on the other side for such a such an offering.
Yeah, thank you, thank you for having me.
You know, we started our journey in Europe and we are as you mentioned, europe large asset management company in crypto and you know, the US remain ninety percent of the AUM allocation in the world, so you have to get enough FORRON in the US. We focus our started of our journey in Europe, and it's time for now.
To bridge into the US.
And we don't want to go into the US with our traditional ETF program or ETP program like we get in Europe and trying to find something different. Yeah, we've been training our dna is asset management and hedgephone business. We're doing community business before that in a hedge fund style. So we say it's time to go back to our roots and you know, offer the US market hedgepron offering,
especially when everybody is living in the US. So what a better time to get in the US when everybody is exiting.
Okay, so you're taking a sort of controversial.
Move because people are exiting because.
They're worried about regulation in particular perhaps people building their businesses elsewhere. We're looking at Gary Gensler really talking tough against the industry, what institutional clients, investors talk saying about this.
So I'm not sure if it's controversial or contrarian. You know, yes, when we started our journey in twenty thirteen in crypto, I guarantee you we were very contrariant and people were telling us what are you doing? So it's kind of part of our gain in DNA to be doing this kind of move. You know, we're not building the hedgephne business. A hedgeprohn not based in the US are distributed and available for US investors, and that's very, very different. And you know, our game is like how do we bring
this product and extend offering into the US. Our legacy product and never been distributed in the US, never been available to US investors.
This is the very.
First time now that we can bring this product to market to a US audience, and there is an appetite for that in the US. There is a lack of product availability in the US. You obviously get the GBTC availability, but beyond that, there's a few little number of players. So bringing a bit of a diversity and different view and different thinking is a great advantage.
Is it generally going to be exposure to bitcoin and some of the clearly not expected to be deemed securities.
Yes.
First of all, this liquid, so everything we do is like one hundred percent liquid. We don't do like ten years vcphone in that approach. So it's like liquid investments, monthly redemption, monster subscriptions, so very very kind of easy to invest. And you know, at the end of the day you have to be able to follow as well
market capital market market capitalization and liquidity. So so you know, we're going to really focus on bigcoon if mainly, which are like kind of the big timative we are seeing interest from.
The thing is like the fundamental question whatever corner of the investing university in is what is the value of holding bitcoin in a portfolio from an asset allocation standpoint, or if you're a retail investor, what's your argument.
It's a very interesting point because if you look at our start of our journey, we come into it as a deep deep value investor in Conciare with our coin share eye. So we started buying bitcoin in twenty thirteen seeing how it will transform and how a shock on the demand side will have an immediate effect on the price because the offer is constrained by code, constrained by low it's twenty one million, nothing else, and fir ust
it was a very appealing process. I think that the narrative got lost a little bit in the meantime because of the speculation happening around crypto, and we can see now that the stats on chain and also off chain are showing that people are starting to hold to.
Their bigcoin and not letting them go.
There is a Concier research which come out this week where we can see that the amount of bitcoin all on chain for one year, not moving two years, three years, four years up to five years are not at an all time high. So people are starting to realize and go back to the real principle of bitcoinferenceance. It was a reserve, kind of a reserve of value, a way of us storing value for them for long term and not kind of just like a training asset.
So it's a very interesting.
Part for portfoliocation strategy and in our cent share model, want people to be able to come to us say okay, we want to allocate bitter with you, and if you want to go beyond bitter, you go to our Hochelon division and have an azone overlay or a complete alpha strategy.
What was it like setting up the business here?
I spoke to Chris Laston three weeks ago, the Ripple co founder who you know he is one of the biggest advocate advocates for the underlying blockchain technology has his own token. But he told me the basically, the FED Royal government and the FED and the Biden administration have killed the prospects through regulation in this country.
So you know, a presence in the US.
Since twenty seventeen, we have a broker dealer in the US. Since twenty eighteen, we have grown up this brocer dealer SOS. We can distribute our product which are effectively offshore products, so they are available for onshore investors. So the capacity to do it is very available in the US. That's to be done properly, done with the right people and
in the right manner. And if you just go on this journey and accept to go on the journey and not say we're just going to do it the way we want, then there is a kind of a clear bone that we can follow.
Can you tell us on your journey you're out here marketing.
I'm sure I'm not marketing.
You're out here having discussions about the offering that you're going to be attracting investors.
Towards, of course, and therefore who are you.
Speaking to you?
I think that the people who are interesting if it's kind of offering. You know, nothing we're doing here is for retail. It's all a created investors, qualified buyer and more sophisticated investors. And you can see like an interest going from you know, our IEA at the bottom of the stack up to very sophisticated. That's a management company who are looking for sleevel diversification because it's not very easy when you are a multi billion dollar hedphone to
just create a pocket of liquidity just for that. So it's like, how do I find the right partner to be able to go and allocate Jeh.
Mary create test some time with you on your journeys across the America.
I have a feeling I'll be.
Back a few more times Jr. When yes, he's coinschaes at CEO. Meanwhile, we did have a little bit of breaking news and we just want to get you ahead of what's happening next week. We understand that well the FTC is poised to sue Amazon for a trust violations as soon as next week.
That have been a report by Politico. This could come as soon as Tuesday.
To keep a close eye on, of course, the ongoing regulatory environment.
With which some of these big tech companies find themselves.
Well, yeah, and I think Bloomberg's now reporting that the FTC is going to do this next week. And remember this is going after the online retail part of the business, the most sort of consumer facing bit. In our colleague Lyarlyland, I think she reported in the first week of September, so we thought this would come.
But yeah, specific right coming up here.
On Bloomberg Technology, we're going to talk about the future of climate tech and how AI can impact that sector its potential but also possibil drawbacks and then their impact ventures. Zoey Pedden joins us. Next, this is Bloomberg Technology.
You need to have a dialogue with countries like China.
They're not going to go away, and there may be things that we can work.
Together with China on, but you know, we have to be very realistic and we have to have those.
Discussions with our eyes open.
What we're trying to see is if we can get a global consensusus on how to make sure that artificial intelligence remains a massive force for good in the world, which I truly believe it can be.
That was UK Chancellor of the Exchequer Jeremy Hunt there and as world leaders gathered at the UN General Assembly in New York City this week, everyone seemed to agree on one thing. Climate change is among the biggest problems facing the planet. Maybe that's where AI could be a.
Force for good.
On today's VC Spotlight, we're taking a look at climate tech, investing the impact of AI on that sector and much more with Ananda Impact Ventures, a European VC firm with two hundred and thirteen million dollars under management. They're investing in startups with scalable missions for the plant its future. Let's bring in an and a partner Zoe Peddam for more. And you know Zoe, these meetings, these big, high profile, week long, let's talk about the world kind of events.
As somebody invests in the early stage, do you see a trickle down of benefit from something like that.
I think it's good to put the topic on the world stage. The media, like yourself at picking it up and talking about it, and it really helps the startups that are already working in it to get some momentum and get people talking about certain sectors that perhaps haven't.
Received such media.
As such a media exposure, there's been a lot of focus on carbon and carbon accounting, but what about biodiversity, what about nature? This is being put on the radar now, so I think it's important that we do have these meetings at this global stage.
What's interesting, as we just heard from Jeremy Hunt, meanwhile, his leader of the Prime Minister of the UK is getting a lot of heat for basically putting climate goals to one side. And I'm interested in perspective of the politicization of the space in with you work. I mean, certainly that's here in the United States as well.
Has there been as.
Much interest in backing funds that want to invest in climate startups?
I mean I was looking at pitch book the other day and it reported that in Q one twenty twenty three, climate tech startups raised five point seven billion, so two hundred and seventy nine BC deals, which is a thirty six percent decline in deal value and thirty one percent that decline in deal count from the previous quarter. But that's a lag indicator for me, because when I'm out there and I see when we're raising our fund and I meet people who want to invest in Nanda, I
don't see this hesitation. I just see more and more money coming from many different areas coming into climate. So I think the dip in climate investing of that last quarter is just a general reflection of the dip in VC funding overall and not an indicator of where things are going.
So let's talk about how you stand out from the crowd. At one point it felt like a very busy crowd. But what's interesting about Nandrew is you sort.
Of put your money where your mouth is.
And you don't take fees unless, oh, the companies which you're backing are saying what they're going to do, and you're holding yourself towards some sort of transparency account Here is that something that's been pipped by the rest of the industry.
It's increasingly being copied and we wanted that. It's called our Impact carry model. We created it back in twenty fourteen alongside the European Investment Fund, so it's a co creation where the carry is linked to the impact.
So we have impact KPIs and we need to meet at.
Least sixty percent of those targets from those predictions from those startups to be able to see any carrier at all. So it means you really values align and the founders really like it, and of course our investors do. I think it's really important that we have something like this around accountability and governance in impact investing to stop impact washing, which you know you've got green washing, thank you've also got impact.
Washing, Zoe.
What is the AI climate play for avenged capitalists like you?
Oh, there's lots of different things.
I think the biggest area is in machine learning.
That's what we've seen for the last few years. So going from.
Looking at computer vision that's tracking had thermal cameras with nanosatellites, being able to detect and look at prevention of wildfire massive area, and then down to being able to predicting wastewater. Wastewater surveilance is a big new area in climate tech, and pathogens and being able to start to track different pathogens like the covid virus which is viral but actual bacterial ones, and being able to predict which areas might
not respond to antibiotics, so antibiotic resistance is massive. So that's when you start to see the environment crossover into population health and then regenitive ag what else. Lots of things going on in ocean tech, very difficult area at the moment and biodiversity nature as I was referring to.
Before, are wonderful. Wonderful.
You are in much more tangible to talk about carbon and I think there's a lot we can do around being able to track nature using environmental DNA on the ground and being able to predict and.
What species have been removed either through.
Infrastructure or mining or something in the water, anything that's being dug up and replacing that and making it better than it was before.
Because those little microbes, So it's.
Not that the big species that you think about big animals, it's actually the microbes in the water. They leave trails of pieces of DNA and we can detect all of those, and they're the ones that when you talk about our food and our soil systems, they're absolutely essential for the balance that we have in nature, and those are the ones that.
Are anander impact venture partner, Zoe Peden, thanks for spending some time with us, really tooking us through some of the opportunities there.
So it's the Global Citizen Festival.
It's become the world's longest running global campaign calling for an end to extreme poverty ever since its first installment here in New York City in twenty twelve. Now for this iteration, three million actions have been taken by global citizens.
Where it's app to ask global.
Leaders to defend the planet, to defeat poverty, to fight for equity. Now, as we gear up for twenty twenty three Global Citis Investival taking place tomorrow, to bring in Michael Sheldren, his chief Policy Impact in Government Relations officer over at Global Citizen. And we're going to put the weather to one side, because it might be a little drizzily, but ultimately you're fighting because of weather elements, because of
the climate, because of poverty. And what's so interesting about Global Citizen And you were born in an iteration where people used to perhaps tweet, or they'd write letters, or they'd send emails. How have you used social media to now bring your force to bear?
Well, thank you for having me on.
And the first thing I will just say, if anyone's coming tomorrow, the Global Citizen Festival continues, rain, shining, hail, doesn't matter.
Everyone will be there.
And you're absolutely right.
Around the world, extreme weather events are impacting the most vulnerable communities. But the way to think about the Global Citizen platform is, yes, people know us for our festivals. But inherently we're a digital platform and we camp having three hundred and.
Sixty five days a year.
People engage with our content and we're always finding ways, novel ways to meet people where they're at. So we're on TikTok, we're on Instagram, We're finding ways to engage people who may not even have access to Wi Fi in developing countries as well. And what we're seeing is
record levels of engagement. Even as social media becomes more fragmented, we're actually seeing our citizens looking for a way to express their agency to take action, such as calling on the UK government to follow through on its commitments around climate financing.
So where does Rischie Sunac, who at the moment perhaps is getting a lot of criticism for not really focusing on the climate agenda.
How do you tackle him?
Where are your citizens going to how you present your case to Rishi that he should care.
So we have global citizens in every single constituency across the United Kingdom, for instance, And what we see, and this is mirrored around the world, is two thirds of people around the world are saying that they favor clean power, particularly solar energy, over fossil fuelds.
Right so we're actually seeing.
If you look at where people are at, it's an entirely centrist message and we believe that the UK government, especially with the Prime Minister's remarks over the last few days, is on the wrong side of history and global citizens have been calling him out. They've been contacting their local member of parliament, and we're also calling on the Labor opposition Sir Keir Starmer, if he's elected Prime Minister, to
stand up and not backtrack because you need Britain. Britain has been a leader on climate change and through our digital platform, it's a way for citizens not just too whining and complying.
About these issues about that online pop I.
Know, I know, but we can take action.
We can actually do something and the data shows when you do something that also gives us hope as well.
You know, Michael, in the last time when I was saying, this is like live aid. But in the in the social media era, we talk so much on the show Carry don't we about the health of social media platforms right now? Knowing that what stands out is authentic, legitimate, you know, how do you feel about that? Do you feel that you are able to get a direct message out through the content that you're sharing.
So live Aid Bono, Bob Godoff. We always say we stand on the shoulders of giants, but our evolution, we see action as our currency. So rather than selling tickets, you know, we could make a few million dollars, or we can give people away to take action. And people can take action on our platform and then take an action their crew points and as we see tomorrow at the Global Citizen Festival, they can exchange those points for
rewards like tickets as well. But we see people they like to be rewarded for their action take in, but they also like to they also like to engage throughout the year as well.
So obviously you employ, well you don't employ, but you stand on the shoulders the celebrities to get your message across. How do you navigate the politicization of these social media outlets? How do you decide or we're going to remain on Twitter now x even though there seems to be a blow up around now who owns it? Or indeed the direction of travel of TikTok so I think.
You know a really interesting example is John Cook, right of BTS fame. You know, they're citizens and you can see the engagement going on. To be honest, they don't really care which platform. I think what you see, whether it's on Instagram or you see it on Twitter, you see record numbers of engagement in the issues. And when John Cook shares something about the issues on all of his platforms, you see people not just engaging with their content but also coming back to the platform to take action.
And I think for them, it's not about being political, it's not about being left or right. Often the sentiment is around the issues, and I think what they see is they trust many of these influencers, trust these artists, and so I think what they're seeing is the artists being trustful custodians of the message.
Michael Sheldrick bringing your message today. We thank you, Chief Policy, Impact and Government Relations Officer at Global Citizen, Kip and I on that rainfall, it happens rainl shine apparently. Now that does it for this a edition of Bluebook Technology and the I can't get my words.
Out because you're about to leave.
I know, I'm going to go back to San Francisco, but it's been good to be in New York.
Greek at the show.
We love that you guys are listening to the podcast apples, Spotify, iHeart, wherever you get your podcasts.
Long week in New York City. What a week to be in New York City.
Now, the listing to the pops, the fact that we're going to be analyzing how that continues to evolve next week