Tesla Sheds Cuts Staff, and a Preview of Apple's WWDC

volume on all of these economic warnings. We have the story. Plus, while speaking of Elon Musk, he's one step closer to buying Twitter, the social media company says that a regulatory waiting period has expired. We'll discuss the next steps, and of course a big preview of Apple's Worldwide Developer Conference and coming up quickly on Monday, developers are going to gather in person for the time in years. Why can we expect We'll break it all down for you. Let's

stake with today's jobs market, the market moves. Of course, those job numbers really coming. They can fascinate. Thirty am this morning, I want to do all of this with cross Marks tieth market strategists Victoria Fernandez and talked to us sort of about you know, sort of the the decent the good jobs numbers and how we're thinking about the way that that impacts the federal reserve that certainly

needs to be on the move. Yeah, Taylor, I think we had some conflicting stories this morning coming out of the job support. Obviously, it was a little bit bigger than expected, and so therefore people were concerned that the Fed is going to continue to raise rates, maybe even faster than what they've telegraphed so far. They've telegraphed fifty basis point moves at the next two meetings September. They're saying is open. Perhaps the jobs report today makes a

fifty basis point move in September more likely. But I think we also have to look at the average hourly earnings that stay flat versus last month, and this is where we're really gonna see, um, you know, the inflation component. It dig in, that sticky component of inflation coming from wages, and we didn't see the game there that many people thought, and we saw the participation rate go higher, which again

could help bring wage inflation down a little bit. So a little bit of a mixed story, but I do think that that is going to continue to go full force at this point and that's why we saw the markets react the way they did today. And is that why tech continues to be the big underperformer, just struggling to be outperforming and it yields rising kind of environment. Yeah, Obviously, when yields go higher, those tech names, those what we

consider long duration stocks, tend to not do well. But look, even when yield went down over the last ten days or so, we had yields come back off of that terday high at three twenty, and we didn't see Tech do tremendously well. We didn't see them take leadership. You still have Energy taking leadership right now. So that has to make us think that there's not gonna be a big shift um and we're gonna be in a big

upturn for the markets. That makes us think we are just having a little bit of a bear market rally right now with Energy still leading. So I think you have to be careful with tech. There's a lot of volatility around those names with yields constantly moving, but I don't think you want to remove them all from your portfolio. You still need some exposure there. It was interesting, though the strategy is over at Bank of America said that tech is a huge laggard in sort of this stagflationary

environment and that growth is the lagger. That this sort of outperformance that we've had as of late is such an anomaly that really the trend is towards value. Are you viewing value out performance and if we get a

stagflationary environment, yeah, we actually like value better. Here when you look at our tim predictions that we put out on December thirty one, we talked about value versus growth, and what we've seen since the beginning of the year is that about half roughly about half of the outperformance from value over growth has kind of dissipated, but yet it's still performing better. So we have a balanced portfolio.

We've trimmed a little bit of our value names, but we're still overweight that we still have growth names in the portfolio. We think with all the volatility that's coming, value may still outperform, but you want to make sure that you have a good balanced portfolio, and that's where we're having our clients position themselves. Victoria's interesting. We're speaking with Rick Reader over at black Rock earlier this morning, talking a little bit about the Federal Reserve and dare

we say sort of a goldilocks ish environment. Take a listen to what he had to say. This will do nothing to deter the head from where they where they're going. But I think I think it's a big report because I think we're now going to make the turn. I think the next three or four months, you're going to

see these numbers decline. I could see a negative print over the next three or four months, and that's the thing that I'm keyed into, and I think that's what markets will react to and trying to interpret how deep the Fed's gonna go. Is that sort of peak jobs what we just got. Yeah, I listened to that interview this morning and it was interesting this he's expecting negative numbers to come out, and I'm really kind of along those lines. I do think that we're going to see

the labor market really start to come down. And look, the Feed has told us they are willing to sacrifice some of the strength and the labor market in order to bring inflation down. So I think we have to expect that that is actually going to happen. We talk about peak inflation, peak yield, I think we have to also speak about peak labor market and how we're going to see some of those smaller companies, you know, that's where they've been hurting the worst on some of the

labor cost issues. If they start laying people off in those lower paying jobs, that's definitely going to affect UM the labor market reports coming in the next few months. Finally, here, what's the biggest question you're getting from clients at this moment? You know, it's interesting. We just hosted a Q and a UM with clients this week where they could just call in and ask questions to our CIO, Bob Doll

and myself. The biggest question we got was about recession and inflation UM and so we're you know, we're telling people we don't expect a recession these this year. Household balance sheets are strong, corporate balance sheets continue to do well. Are we going to see growth slow down a little bit, Yes, but we're not at the level with the labor market with earnings, were not at the level yet that we

think we're gonna go into recession. We're looking if that happens maybe second half of next year, but we still think the economy will hold pretty strong. Here for the rest of really appreciated cross marks. Chief market Strategists Victoria Fernandez Happy Friday, and that sort of leaves us off at a really good note when we think about recession, is that the biggest question that clients are asking, is that the biggest question that corporate CEOs like Tesla CEO

Elon Musk is asking. He now actually comes out Today's saying that he's aiming to cut around ten percent of salaried staff from the company, saying that he quote has a super bad feeling about the economy. Dan Levy of course over credit suites joining us. Now, how are you thinking about if this is sort of an idiosyncratic Hassla issue or are you a little bit worried this is a broader e v broader economic issue? Thank you, Thank

you for having the tailor. UM. We were surprised by the headline simply because Tesla is in uber growth mode. We know there's a lot of capacity that's coming online. They need UH support staff to to support that growth. So the headlines UM came as a bit of a surprise us. You know, yes, we're getting more questions from investors on the risk of recession. But the main thing that I would just point out is that Tesla and

the auto industry broadly right now. The primary issue is actually not demand at the moment, but it's really supply. This is a supply constrained industry. Anything that's produced will be sold. UM. When you look at US auto sales, twelve point eight millions are in May, much lower than the typical seventeen million star that you would get. UH that that's because you have inventory at all time low.

So the largest problem right now is supply, and in the case of Tesla, they need staff to support supply.

Increasing that supply, uh and and unlocking that volume. Is this why maybe you well, I don't want to say you sound confused, but some of your counterparts Morgan Stanley's Adam Jonas, the cfr A analyst, saying that this sort of goes against what they were thinking when you talk about ramping up production, of increasing that supply, needing the staff that you can in the factories because the demand is there, are you could I say that maybe there's

some confusion there as well. I think confusion is the right way to look at it. It is a little bit of a surprise for a company that is in uber growth mode and that I think it probably has a very long term view they have UH you know, something like eighteen or nineteen billion dollars of cash on the balance sheet, so they're well insulated. It is a little bit of a surprise. Now, I think to give

credit to Tesla maybe to understand partially what's happening. This is a company that, even with all of the padding that they have on the balance sheet, they are very cost focused. We actually just had a field trip to the Fremont factory last week. You can still see this is a very cost focused company, even with all of

the improvements in margins. So I don't know if it's something along those lines, but but yes, for a company that has a lot of growth, a head that needs to increase the volume, that needs to increase the support staff to support that volume, it's it was a slightly surprising headline. Really appreciate it your time and the fundamental analysis, Dan Levy, of course over a credit swas, really really appreciate your perspective there. Let's talk about that stock split,

Amazon's one with the first split adjusted trading. It all begins on Monday. Now, remember the split was announced back in March. Shares initially got a boost, but then of course April and May came really falling here with a lot of the tech volatility. What does the split mean

for investors joining us now? Michael Pactor, Managing director of Equity Research over a web Bush Securities, And we know the math intrinsic value hasn't changed for the company, but does the psychology, the consumer sentiment around the stock change it all for you? Yes? I mean, Taylor, I think that the idea of a split is to make the shares appear more affordable. And obviously institution just don't care,

but individual investors do and employees do. Um, So it allows the company to be more appealing to individual investors, you know. And if you have ten thousand dollars to invest, are you going to buy four shares of Amazon? You know, maybe not, but you might buy a hundred shares at twenty it's been twelve thousand. I think that's how they're

thinking about it. Same with employee compensation. You know, I have a friend who went to work there, and I remember the game two three shares of stock investing over

four years, and it was just really complicated. They could push Camp down now stock based Camp down to even fulfillment center workers and truck drivers if they choose to because now they can give out stock an increments, you know, say a hundred twenty dollars instead, So it really provides a lot more flexibility for investors who are individuals want to buy one share, and for employees who they want to compensate and keep motivated so they can give them

one share. So I think the stock will probably go up on this. More importantly though, this shows that management actually cares, and I think they have a reputation, very well earned reputation for not caring about Wall Street, and this is a very investor friendly thing to do. So I think it's a signal from Andy Jassey, who has been absent as far as investors are concerned, that maybe he does care about the share price, and we're going

to see a start to go up. Very interesting. I am curious when you're thinking about management exit today Michael the Amazon CEO of the Worldwide Consumer Dave Clark resigns, are you thinking about Andy Josse coming in shaking up there sort of c suite areas the impact that that may have. You know, if if you had to pick one area of Amazon that was not doing poorly, it was that one. So I would say that, you know,

consumer has been great. Actually, they they're great on everything they do on the revenue side, where they're out of controls the expanse side. And to be perfectly honest, I don't think it is Dave Clark's fault or anybody else's fault. I think it's Jeff Bezos and Andy Jesse's fault because they have a bunch of scut work projects that they're not going to tell us about, and they're investing a ton of money in things that may not pay off

for ten or twenty years um. Like. As an example, I think Amazon Fresh self service stores is just a ridiculously stupid idea. Uh, you know, we don't shop at Amazon, so we can get in our car and drive to a store and you know, not have to deal with the clerk and checkout. Isn't the reason that I shot at the Amazon. So I think these guys have a lot of spending cuts to make. I don't think Dave

Clark was the guide to make those guts. It's Andy Jassey, So he should be much more self introspective and be more self aware and start worrying about what he's doing the CEO. The bigger problem is that they're losing employees up and down the ranks because they don't pay enough and they're being poached by competitors. So they if they're going to get rid of somebody to CE suite, get rid of the head of HR because that person has not done a good job. Interesting. Okay, so we're getting

into some of the idiosyncratic issues with an Amazon. But Michael, I thought it was really interesting. One of your counterparts, Sprint thill over at Jeffreys. I think I spoke with him last week and he said that sentiment on broader tech has never been worse. That they're doing backflips at the Exxon shareholders meeting, and you go to these tech conferences and sentiment is horrible. Is a lot of this

maybe sort of the broad sentiment around technology in general. Yeah, My My largest personal holding is ex On Mobiles, so I've been doing back clips as well. Um, you know, there's two types of tech. You know, there's tech that's not profitable, and so when you're paying a revenue multiple for for companies like Unity and I love Unity, you know it's a genuinely great company, but they don't have profits. Um, there is no bottom. I mean, who knows how to

value that thing. Then there are tech companies like Microsoft, Apple, Amazon, Google that are immensely profitable, and so it's really easy to kind of step in when you think they've gone down enough. And I think that where Jazz has control is he can say I'm gonna take earnings for share up ten bucks by slowing our spending on some of these projects that are going to pay off for ten years. If he does that, I think the stock has a potenci to go right back to where it was. So

let's see what these tech leaders do. But the profitable companies should lead the rebound, and the big guys tend to be pretty profitable. Really appreciate all of your smart analysis. My goal packed or Knaging, director of Equity Research over Wedbush Securities. And just a note, I know that we're talking about the CEO Andy Jassy there. Stay tuned on Wednesday to thirty pm Eastern at the B Tech Summit. We will have a live interview of course with him there,

so make sure to tune in for that. Lots of great interviews coming up at that B Tech summit. In the meantime, lots of great interviews coming up right here right now. We are one step closer, of course, for Elon Musk. Overcoming those hurdles for a Twitter takeover that conversation is next. This is Blimberg. Twitter passed in US anti trust review, clearing another step in its hurdle for the acquisition by Elon Musk in that proposed forty four

billion dollar deal. However, the transaction it is still subject to acceptance by Twitter sharehold. There is another regulatory reviews joining this now Bloomberg's Edla Lowe sticking around late for US on a Friday, and how much of this sort of hurdle today was expected, Yeah, it was expected into

a large extent. It's rubber stamping, you know. Essentially, the provision means that when a piece of M and A happens like this, both parties have to give the Federal Trade Commission and the Antitrust Division of the d o J thirty days to review the deal. And all this regulatory filing showed US is that that thirty day period has elapsed or the regulators went back to the parties

and said, you pass the checks, you can proceed. But as we know, you know, regulators are looking at other elements at this, for example, the timing of when Elon must try to build up his stake in Twitter ahead of that offered to buy the company interesting and the sheer process at forty Yes, that is a far cry from the fifty four twenty. Are there real concerns that this may not get done? Yeah? You know, certainly the rubber stamping news of Friday moves us towards a place

where we think it's more likely to get done. You know, we're talking about the spread here, right, the difference between the current share price forty dollars a share and the fifty four dollars twenty cents per share offer that Elon must made. The basic rule being the whyd that gets It's a soft indication of skepticism on Wall Street is going to happen that if that gap closes, we're moving towards a place where it's more likely to happen. It's

just a soft indication. You also have, like merger arbitrars specialists that put odds on the deal, and at some point that you know, the odds on this deal happening have been below for they've now improved. The question is does he't come back in with a lower offer, And it seems like given today's news, that's unlikely to be the case. Interesting. So the hurdle then, that's now on Twitter shareholders. What would be anything for them to not vote for it? Yeah, this is a psychological question more

than anything. You know, at twenty cents a share, you would lick your lips at that offer. That's a great offer if you're an existing shareholder of Twitter, because the trading Twitter hasn't really mirrored what we've seen in broader markets, right, because it's been subject to m and A and to take private bid. It hasn't traded with the wild swings and big drops like we've seen in other social media stocks.

So yeah, wait and see, really appreciate it. Our very own at Ludlow coming up stick with us equality and inclusion in the workplace. We're going to speak with Brutal Gurus CEO Bobby Risette about her mission to represent under represented groups at her company, and that really important conversation is next. This is Bloomberg. Love's happening on Wall Street. It's the basic law of economics. It validated bottle market was already pricing. We need to catch up. This is

Bloomberg Wall Street Week. I'm David Weston. We've got the information and insights. David. You just hit the mail right on the head from businesses most in fluential and instrumental, and that's the way you run good risk manage. It's a challenging dynamic. We could continue to see that college from Bloomberg Wall Street Week premieres Friday, with replays all weekend on Bloomberg Television and Radio. This is Bloomberg Technology.

I'm Taylor Riggs in New York in for Emily Chang and this week started the Pride Month of course Bloomberg Television, focusing on a wide range of topics highlighting what equality means for the economy. Company these and well investors. Virgil Gurus it is a talent as a service solution platform that matches its users with the perfect North American remote assistance and freelancers by using match making algorithms. CEO Bobby Rossett is on a mission to create employment opportunities for

underrepresented individuals. She has, of course amanded within her own company that of the workers identify as female, of course by the bipop community, and forty as part of the lgbt Q plus community. Bobby so pleased to say, joins us now and talk to us sort of as we kick off Pride Month and sort of a renewed focus on equality. And it's not lost on us that today is also job stay as well and continuing to see underrepresented individuals maybe not quite have the same opportunities as others.

What do you really see is sort of the way to help move that forward. I thank you so much, UM, you know I I think all companies are are starting to gear towards UH inclusion intiversity in the workplace. At

least we're seeing it a lot more now here in Canada. UM. We obviously have a lot more work to do, and I think it's important to that employers such as UH tech companies mostly need to really focus on putting that diversity out there right up front for everybody on their team to see and what they're working on, put their numbers on their site. I think all of this is extremely important so that we can show everybody that they

are welcome no matter what. This is a technology show as well, so we're focused on equality across the board. We're really looking at highlighting it within the TEX sector as well. Do you see that the tech sector has maybe lagged or or struggled and and how do you sort of see this sector as being able to match

other areas. I absolutely have, um you know, down here in Canada, it took me more than a hundred and seventy knows just to raise my seed round, which is obviously or the series they finding around that we just closed. But um I I want to say that all of that wasn't because of who I am as a person. I'm an Indigenous LGBT woman and you know, having being an Indigenous lgbtwo woman in tech, but let alone a CEO of a very large scale of I've seen a lot of the barriers. I've had to push through a

lot of them. I've I've seen, you know, so much that it's been difficult for me to be able to scale the company knowing that people aren't believing in me because who I is who I am. So that's one of the reasons why Virtual Grows focuses so much on diversity and inclusion and the workplace. So we hire people from all walks of life, and all of our talent

are people that have a story. Every single one of them has a story, whether they're a line and immigrant to somebody who might be transitioning genders who can't find work because of it, to UM, you know, to people who are veterans and might have social anxiety because of PTSD, and two people with mental health issues as well, and this is important that you're giving them a safe space to work. And UM, I felt that using our platform

for that was the best thing to do. Has anything gotten better, particularly since COVID in a sort of renewed focus that we've all had on more equality, you know, I think so, especially because of the remote work. You know, remote work is here to stay, and everybody's obviously UH figured that out with COVID and and you know, everybody is not afraid to hit it head on as they were before. UM. But I still think there's a lot going on. I still think that there's a lot of

people being told no because of who they are. And I think, you know, like I said earlier, that if it starts with one business just making that change and not being afraid to make that change and standing out and shouting those numbers out, UM, just like how we shout out our identify as women UH in six or identify as part of the l g B t Q community. It's important to put that out so that people are

seeing that. And so I've noticed a lot more tech companies that are hiring remote We are hiring a lot more diverse populations. But I think there's obviously so a lot of work today and you talk about remote work, and I am curious, is that sort of opened up the labor pool that instead of access to the individual city, the remote work now is access to a talent pool across the whole country, maybe across the whole world. How have you seen within your company sort of the ability

to use remote work to your advantage. So Virtual Grous is talents as a service platform. So what we use we provide marginalized and underrepresented folks through the platform and we match them with a business or an entrepreneur um. Some of our largest lines come from the US and we will provide anywhere from a hundred to two to

three D virtual assistance for them. And a lot of them are actually coming to us because of our equality and our diversity, and they're actually saying, hey, you know what, we want two hundred people of diverse backgrounds um and so we're noticing a lot more of that is coming out.

The difference with us, though, is that a lot of companies like us off short and it's not necessarily a bad thing, you know, um, But for us, we promise to keep it on short in North America, So while we're going global, all of our workers will always remain in US R Canada, so we can keep it on our North American economy and I keep it down here. You mentioned sort of your own struggles. I am curious with the VC funding world. There's been a lot from

a broad acre an eco economic environment. We've been hearing that investors are saying to their portfolio companies, conserve cash, slow down, be prepared to not be able to fundraise for a while, be prepared to hold on to just that whatever cash that you have on hand. Have you found the fundraising environment generally a little bit better, particularly

for minority owned businesses, you know, such as yours. How have you experienced sort of that VC funding and maybe a post COVID environment now, Oh, honestly, for us, it's been good. I just closed my Series A funding round less than a month and about a month ago, and it only took me six months to open and close it directly full, so I actually had no problem. And now the difference is is I did gear away from vcs and kind of went more into impact feces because

what we're creating is impact. Um you know, we we are, like I said, providing work to marginalized communities that a lot of people are not doing. So we were able to target the impact investors, which really made it a lot easier on us. UM that said, one of my investors just geared us up and said, you know, we're almost heading in towards a recession, and uh, you know, the the the economy is changing and is changing fast, and the cost of living is is changing and we

all know that. Um. So as as far as going into our Series B, we're probably going to get in there a little bit faster than later because you obviously got to make sure you protect your run rates. So we're working hard on on that and we're probably looking to jump into it within the next eight months as

opposed to twelve fourteen months like we were planning on. Well, we wish you the best of luck in that funding round and really sort of important comments when we think about a quality and of course sort of the fundraising environment in the midst of sort of a slowing macro economic environment as well. Really appreciated. Thank you, Bobby Rosette of Virtual Groups, really appreciated time for our crypto report. I want to start with Bitcoin dropping back below the

thirty thou mark. This is after a sort of regained that closely watched levels just a day ago. Our crypto contributortionally Boss take here with more and Sully. Is this sort of a classic risk off sort of sentiment Again, Yeah, you're looking at the SMP that was down in another week.

But if you look at it, Taylor, something interesting. Even with the two day decline or twenty four hour decline and bitcoin of about two percent, you actually have over a seven day period a three percent rise in Bitcoin. We should look at what this downturn really looks like in the context of other stocks as well, because, as we know, this route and bitcoin is really hurting other

companies that are exposed to bitcoin. One company that many investors and crypto employees are talking about is coin base, where there was a very steep sell off today and they are trading below where they were a week ago and getting much closer to that fifty drop over a one month period. Remember, coin Base had said that they would be resending some offers as well as instituting a hiring freeze. There are other stocks out there that are

still also trading lower on the week. They have not said anything necessarily about hiring, but you look at a riot blockchain or a block and you wonder how the stock pressure will impact their plans moving forward. Taylor really appreciation only stick with me here because I'm gonna bring in our guests next guests for more insight on this. Tak Inclined, of course, the co founder of Edgin Node, the company behind the graph protocol. You think of them

is the Google of block chains. And before we got to get into the nitty gritty, I'm curious how you think about the volatility surrounding the price action and the calls that it's going to go to four hundred thousand and then calls that well, maybe actually bitcoin's only worth eight thousand. How does all of that volatility impact you? Yeah,

it doesn't really. We've been I've been I've learned about bitcoin in so I've been used to this volatility um and we kind of prepare for it and embrace ourselves in the crypto space for that volatility um, and we're just focused on building. Speaking of building to again How do you think about this in terms of all the companies out there that had these really tremendous hiring plans like coin base, and now saying that they may resen

some offers. How does that impact the inclination of certain people who maybe we're not in crypto before, but we're thinking about crypto and now might be more spooked by some of these jerks need to knee jerk reactions ahead. No,

I think that that's a fair response. But I do notice that there are still many projects hiring within the space coin basis of a multi thousand person company, and so with volumes down, exchanges are impacted, and so it sounds like they just want to hunger down for a bit. But there are many projects that are building within the space. One thing that's really interesting about the crypto ecosystem is that you don't need companies that are thousands of people wide,

unless it's a bridge to the space like coin base. UM. You can have companies that are much smaller, so a few dozen to a few hundred UM, and then it's it's less impactful when there are times like this. UM, So I wouldn't lose steam. I think that it's still quite optimistic within the space and just with the potential

that that crypto and web three have. Well, what are the kinds of companies you think will be able to hire most tea in Where can a person who wants to get a lot of crypto skill gain that crypto expertise in a crypto winter. Yeah, I mean we're still hiring Edgin note and we work on the graph protocol. Many coord developers within the graph ecosystem are also hiring UM and I think there are many protocols like look

at our, we look at connects. UM. We still need talent and it's actually in a in a market like this, it's easier to get talent. There were the price tags for lan. We're really rising up during the bowl market, and so it is a good opportunity for projects and companies to be very decisive about who they want to hire and the and the roles that they really need to hire for in a time of uncertainty within the broader macro environment. UM. But yeah, many projects are still hiring.

How do you think about the inherent conflict of decentralization on companies that are getting bigger and bigger who might need authority and centralization over a product. Yeah, it's a great question. So I think in Web three, you really want to give that power away. You want to give up power back to user, and that's really what this is about. But that doesn't mean that centralized companies won't

go away. They'll just exist in the concept and the concept of decentralization, and the Graphic Protocol is a great example of this. There are over five companies, one of which is Edge and Node that exists within the context of that protocol. And now that we have these new monetization structures, were able to get rid of the kind of wompy monetization models like ads and kind making users the product like what we see a lot in web to um within the Web three space, and so that's exciting.

The graph has been referred to of the Google of block chains, and you've announced a Web three browser. So how is that kind of browser going to be different than Google itself? Yeah, so great question. So u Geo is the browser that was announced yesterday, and it is a decentralized browser. It's the first browser of Web three, so very different than any browser that we're used to

in the web to space. And Web three is really a new web it's a verifiable web and so you can think of like a Google Docs form where you can see all the change history. That's how GEO works, and so anyone can contribute to changes. However, there's reputation within GEO and so you the more you vote, the more, and you can earn more reputation over time, um and you have more say so, it's really about giving the power, the control, the ownership, the decision making all back to

the user. And everyone's been asking where's Web three? I can't find it? Well, now you know you kind So what about the Web two companies that are getting more into Web three and it's starting to dip their toe into blockchain in a bigger way. Do you think that the traditional Web two companies met at Google even? Do you think that they can create a lot of competition in this space? I don't. I think that Google is doing very well selling ads they I think that they

are doing a great job in that current space. I think once you as a founder, once you take equity or once you start monitoring monetizing in one way, it's really difficult to reshape that monetization and you have a lot of stakeholders. UM and so I think they would need to kind of like spin out or enable this space in in some way. And even with banks, right like banks aren't going away. You still want someone to call you when you're if you have a margin trade

out and you're about to get liquidated. And so there's still a lot of room for the traditional companies to exist within the space. It'll just be in a different context. You know, we talked about Crypto Winter in the Vein of Hire, but what about Crypto Winter in terms of the types of projects that will be built. Do you think this is the opportunity for Crypto to pivot? Are there going to be different types of projects than we

saw in the last couple of years. Yeah, I mean, so all the pieces of the tech stack are there. We're still building. And I'm actually really excited about this cool off because so many founders and projects were being pulled in ninety different directions in the Bowl market, and now you see the projects that are really being used and it kind of comes back to fundamentals as opposed to the marketing that went in during that Bowl market, and so you're pulled in less directions and you're able

to just build. And I think the biggest piece, the biggest piece to the puzzle is really time and now like this market, we have that time. Really appreciated taking Incline co founder a Vegan note of course in our very Bloomberg Sennalis Bossic, really appreciate both of you joining me here today. Coming up after two years of being virtual Apples w w DC event, it is that it kicks off Monday. We are going to be live in Apple Park and we have sort of the latest on

what to expect that's next. This is Bloomberg the Apple Worldwide Developer Conference. It kicks off Monday in person for the first time since the beginning of the pandemic. The tech giant holds it each year to show off new features and device enhancements that developers can harness with their apps. Joining this now Ben Bajarin, principal analysts and CEO at Creative Strategies consumer tech research Companies. So, okay, hit it with me first. What is sort of the key thing

that you're really looking forward to on Monday. Yeah. Apple's WWDC is always an interesting event because it's the one sort of place where where they do give a little bit more of a roadmap to the future. Not the long off future, but stuff that's coming this fall, so they'll preview everything new that's coming to iOS, iPad os, mac os, stuff like that, maybe t v O S.

So it's generally always a software focused event. I know we talk a lot about hardware, but I don't know how much hardware would really be at this event is not typically what what Apple does with with w WDC, but really just talking to developers, showing them the vision for the platform where they're going, so that they can start to take advantage of new s, d ks and a p I s create new apps on whatever new

bells and whistles they're bringing to the platform. So that's usually what I'm looking at the most is how are they evolving their platforms forward, and then things around If a piece of hardware shows of or something else is usually kind of icing on the cake. Would that be in the form of a new headset. I don't think so. I would not expect that. I would caution others do not not expect that. I mean, personally, I'm not sure that technology is there yet, even from stuff I've seen demo

and tech wise, it's it's just not there. So I would caution away from that. But that being said, Apple does have a toolkit called a R Kit that they're continuing to try to gain momentum for and get developers to start using anymore. So it'll be interesting to see if they launched anything new around a R kit that

might give us some signals about where they're going. Really, again, it's about getting developers to take advantage of those tools, those technologies and create new apps, and in this case maybe more a R apps, but they'll be smartphone based. Well, we talk about the apps. Our own internal reporter, Mark German has done a lot of research and looking at maybe a new iOS six team the way it can interact with the user. How do you think about the the iOS system the six team. Yeah, I think it

would be really interesting. I mean that that could be, in my opinion, one of the bigger surprises if there's a user interface overhaul, something that's flashy and new that we can get excited about. You know, iOS is great, It's it's evolved quite a bit of time. It's really only gone through a couple of serious, i would say serious user interface um overhauls. So if people have argued that we're due for one to make it more flashy and new, because because that's the thing I think it's

really interesting about this platform in general. Apple's approach to it is this event really signals all of the new features and functionality that they bring to their customer space, right basically making all of their customers devices better with a software update. And so what might that look like with something that's kind of brand new, I think that

would be an esting surprise. Again, it's hard to expect that, but that's the kind of thing that I think people would would get really excited about, is a fresh, fresh look for iOS. This is also a company that has done a huge amount of work to bring the chip design in house. How much of that is control over your own destiny versus some comments on the supply chain that are still a little bit difficult in this environment.

I think it's primarily driven by control of destiny. I mean, the Apple looks at the entirety of their product roadmap from software, services and hardware. They always have a vision for that where they want to go, and they take that and and and build Silicon with that vision in mine. Right, the Silicon team is in lock set with the hardware planning team, the software planning team, and services, So it's

really a comprehensive whole. Note their supply chain images are issues, but the reality is, even with Apple's internal design of these ships, they're not going to be immune to the supply chain issues. Hopefully they can try to manage that better, but absolutely, Apple Silicon is a is a critical part of moving their hardware device strategy forward in everything, including some things that are new in the future, whether that's headsets or whatnot. At all the Apple Silicon based do

you see any sort of macro issues? The supply chain startles, the shutdowns of some of the factories in China starting to impact this company in a significant way. I don't know about a significant way, but we're definitely worried about some impact. I mean, there's no doubt that the China market has slowed down quite a bit, even just consumers buying there, and China is a big part of Apple's business. So I do think people are starting to caution a little bit about what do you expect in terms of

a hardware impact. Again, that's not demand going away, that's just people either not being able to get outside and buy phones. That's supply chain or factory being shut down, not being able to make them and so across the board. And I think this is true really of all consumer electronics category. These aren't necessarily lost sales. These are just delayed sales. But but that being said, it's it's going to have an impact right in a short term some

degree really appreciate it. Ben Herron, principal analysts and see you over a creative strategies, really appreciate it. That doesn't. For this edition of Bloomberg Technology, tune in Monday b Tech Live from the w w d C. You don't want to miss it. This is Bloomberg