From Marhart where Innovation, Money and Power.
Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlove.
I'm Caroline Heidel Bloomberg's world headquarters in New York, and I Med Ludlow in San Francisco.
This is Bloomberg Technology.
Coming up the PC slump.
It continues HP fours by the most and at one point three years, calling its profit outlook. We're going to bring you the state of consumer Electronics, and.
As Apple sets a date for the launch of the iPhone fifteen, Huawei unveils a sophisticated but mysterious new smartphone that's captivated China's tech industry. Full coverage on both those stories ahead, and.
We're going to be hearing, of course from the CEO Grayscale sitting down also with the leaders of Ford, Prow and Bosh talking a state of evs, of semiconductors and so much more. The first limbag's Brodie Ford, who of course been all eyes on HP and interesting on the day that we also get HP that seems a little bit more optimistic about business spending. But is this all about more the corporate than the consumer?
When it comes to HP.
So it's been this PC apocalypse for a year now. You know, it's been a long time of companies saying it's bottoming out, people are gonna start buying computers again, and it just keeps getting pushed back. And you have this question about is the consumers the enterprise? For a while, I think people have assumed, Okay, consumers aren't buying computers as much, that's okay, but businesses still will. But what was really concerning in last night's report was that enterprise
was continuing to get a little weaker. And the reasons for that is the kind of macro fears that every business feels, right aid, do we really want to spend some money right now?
But also because of layoffs.
Right you hire somebody new, you buy them a laptop very often, so you're less hiring people, you're less buying laptops.
And I think, Bradie, this thing about this story is that HB basically said, like the PC demand picture is improving, it's just not improving as much or as quickly as we thought it was going to correct or that they said there was going to. Then there's the print business, which we never really talk about that actually was a big disappointment, right, that's correct.
Yeah, the print business was hurt because I think, especially because of the weaker yen, some of the Japanese makers of printers were able to price better. And that's a big part of this story across computer and printer is that every single manufacturer is having this problem right now. Most of them are sitting on a bunch of inventory that it's you know, getting older every single day, and
so prices are really coming down. So I mean, if you are looking to get a new laptop right now going into the holiday season, the general thought is they are going to be dumping a lot of material, a lot of inventory for lower prices, and good for consumer, not so good for a corporate earnings report.
Look at that print to pictures that we have not using that nearly enough. Berdie, I like that you mentioned the yen, and I like therefore that it sort of takes us global. Yeah, because there is some weakness in China. How global a picture is HP trying to paint us here because we get very focused on the US, particularly with the GDP data today.
Yeah, they said that's a big part of it is weakness in China. It's economic weakness, but I didn't get the sense that that was a really major factor. I think that was part of the main constellation of factors. I think the piece that was most concerning is that businesses aren't buying new computers in the way that they expected. I think earlier in the year it was that, hey, as we get to the back half of the year, the economic picture will improve. We got back to school sales,
we got Christmas, life will be good. And it just hasn't quite panned out that way. And so, yeah, weakness in China is part of it. You know, cheaper printers in Japan because of the end is part of it. But that US consumer story, that US business story is pretty close to the heart of what is driving down that stuff.
Bloombergs Brody Ford on the PC apocalypse. Thank you for thank you. Bring it back. All right, Let's move from PCs and turn to a slow down in the hedge fund industry, specifically funds run by Tiger Cubs, the name given to the proteges of Julian Robertson. Writing about this today, Bloomberg's Hemma Palmer joins us from New York. You have the PC apocalypse, and then we go to the cut of cash flow to a trickle, which I loved in
your headline that the numbers are quite dramatic. What's happening here?
Yes, So these are some of the hedge fund industries biggest names, most influential stock pickers. For years, investors were clamoring to get into these hedge funds. We're talking about the Tiger cubs. And what we're seeing now is, after last year's a very difficult year in terms of performance for so many of them, investors from the US appear to be less likely and sort of sorrowing on investing
in these hedge funds. You're looking at a drop in the number of dollars that have come into these funds from US investors, a drop of like ninety nine percent, ninety eight percent, eighty one percent. Pretty dramatic numbers, dramatic.
Just give us the context here any pushback that they might have as saying, look, they were closed funds. We were limiting the amount of cash that we're taking in. But is that a reality.
So some of the funds were open.
If we look at D one, CO two Loan Pine, two of the funds were closed, Viking and Tiger Global. The thing is when it comes to a fund being closed, we have seen a number of funds take in as much as a billion dollars when they've been.
So called closed.
They could be replacing redemptions, They could be making exceptions for influential investors or for big tickets. So a fund may be closed, and even if they are and they do see a sharp reduction in inflows, as one of the people we quote in our story said, it may be a sign that the wait list of investors has dried up. That said, you know, Tiger Global did turn down a couple investors who wanted to invest in their fund. So we are you know, it is a comprehensive, sort
of holistic look that we're taking here. But a fact that a fund is closed doesn't necessarily mean that money still doesn't come into that vehicle.
Hemm? Are you and the team have been trawling through the Form D filings now, Karen and I went through all the thirteen f you're going through the Form D filings? What are they and what did they kind of tell you about the fund raising environment right now?
Yes? So the form ds are the filings that these hedge funds have to have to do and it shows how much these funds manage on an annual basis. And what we're seeing right now broader in the hedge fund fundraising environment is it's quite.
Difficult and it's been quite difficult for some time.
So you're seeing, you know, thirteen billion dollars in redemptions from the hedge fund space in general, and so investors are pulling back from the universe. You know, it's been tricky with performance, it's been tricky with rising interest rates.
For new funds that are launching, it can be also quite difficult to raise fund So this is existing in all very difficult time to be raising new capital, given that the steep decline that we're seeing and inflows does seem to be even worse than just the environment itself.
And the reason this is so important to our view as Hammer is because we'll just look at Tiger Global Zone website focused on public and private companies in the global Internet, in the software, in the financial technology industries. This hits home particularly in this show. So we thank
you so much for all of that. When it comes to these Tiger cubs have a Palmer, brilliant reporting me while coming up, look, we're going to get another sense check on this macroeconomy on how much companies want to spend, particularly when it comes to the world of evs.
The CEO of four pro is going to be joining.
Us as a mveil new products to drive some strength from the pun in this commercial unit.
Tech Cana is going to be joining us.
At Yeah, I've got some breaking news actually in the last hour, this has moved very quickly. Bloomberg reported first that the Cyber Administration of China was going to pick Bydo is one of the first China tech companies authorized to issue a generative AI tool to the public. That happened, We reported that, and the shares the USA dr has really jumped in the last few minutes. Baidu's posted a blog saying it's actually already going to start rolling out
that generative AI tool to the public straight away. You know, a bit of a spike there, but interesting and fast moving developments out of China. This is Bloomberg.
Let's talk evs.
Let's talk full Probe because it's a commercial division of Forward revealing new charging hardware for its array of in turn solutions to help make it basically easier for you, the commercial customer to transition your fleet to electric? How is that going in this macro environment. I'm really pleased to welcome for pro ceo Ted Cannis and Ted, wonderful to have you in the studio and.
Just answer that. First we've got to go micro under the detailing business. But the macro picture today, when GDP isn't as strong.
As expected, when jobs perhaps are not growing, it quite anticipated amount that we had seen. Are people wanting to update, electrify, invest in their businesses.
Absolutely. What we're seeing, Caroline is what we said a second quarter is there is still three years of pent up demand for the vehicles internal combustion and battery electric doing all that supply chain problems that we had, and so we see customers for super duties and trans it's both North America and Europe looking for vehicles. My biggest challenge with most of my customers pay customers is can I get more?
Oh? Interesting?
Okay, So you'll try to marry up the supply demand equation at the moment I'm interested in into Ultimately, Therefore, how you're sending us out apart? What is it that makes them go yes for pro over anything else?
Well, so we have this amazing backbone of the business that we have all these commercial work trucks that we do for North American Europe. We're at number one in Europe for eight years in a row. We have forty percent of the commercial and government share for full sized trucks and vans.
We're the big guy.
And what we're doing now is expanding in not just vehicle in a connected.
World, it's vehicles, software.
Service, charging, financing, netting that all together so that we have this amazing business, a one stop shop for our customers.
Just the easy button had said, it's good to catch up. You know, I actually find the commercial business fascinating because you're not just selling a vehicle that happens to be electric. You're kind of packaging it up. You mentioned your footprint in Europe. I just wondered if you had a better sense now of why that EV adoption is slower here in the US visa the Europe and indeed China well ed.
When you and I were first talking electric vehicles years ago, and we're getting ready to hit the lightning and other products that we weren't even had launch at the time. You know, America was a bit further behind cost of fuel in Europe was very high and there was already a lot of pressure to look for other solutions. And what we're seeing now and actually in both regions, is it's just good business total cost of ownership, up time, productivity solutions. They can save money on few they can
say money on repairs. It's a great solution for many customers in both regions. And that's what we're seeing, and that's why we upped a lot of our production demand for lightning here in North America. And it's getting the right tool for the job, whether that's a van or a pickup truck to do the work.
Jim Farley, the Ford CEO, is talk it's about the consumer, you know, sort of rejecting higher prices for evs. Do you see that from your commercial and fleet customers as well? On the pricing issue.
I'd say we will carefully managine the pricing as we increase the supply of vehicles now that we're going to the extra shifts that we put on and lightening and have the battery capacity. So a lot of it is just education. I think in the commercial space, the decision process is longer. In a company, this is a big investment,
like in facilities, or equipment. They're used to making investments with making the equations, getting Excel spreadsheet out, and that learning process is taking longer, and then you would do stack on applying for incentives utility infrastrution that's required. This turns into a longer process than moves through the cycle, and that's what we're helping a lot of our customers and frankly our dealers as they work with so many new customers.
You know, I've been out in some vineyards and wineries very near to where I am now ted, and they demonstrated to me not just that they run the F one fifty lightning between point A and point B, but they're using your data and software offering to kind of optimize that route everything from like getting down to the most efficient mile they can drive. Peter Stern's just joined Forward,
longtime Apple exec. I just wondered if you could tell us why that move came and what kind of impact he will have on improving that software offering.
I think this is corridor the whole Forward plus plan. I think we're all talking about electrification on all the time, but the real secret is the software defined vehicles and connected vehicles, digital on physical services. That is the big change. So when you have a vehicle that's signaling a repair that needs to be made, you can pre order the part schedule at the dealership. Link all that together. Like you're seeing so many cases where software can brive more convenient,
more productive solutions for the customers. Peter is a specialist in that space. He's been doing subscription services at large volume at Apple with that kind of science that he's seen of where and how to change the experience for
the customers in a very positive way. And he's going to come lend us that experience, both on the pro side but in our other software defined businesses, for example Blue Cruise, where you can have hands free driving on the highways in the blue crew zones, which also in the future will be appealing to commercial customers. Imagine a customer who can get his time back on the highway time is just a huge value. Oreor in traffic coming in the London on N twenty five, you're stuck in
those miles and miles of ques. It's a great thing to not have to be hand in the hands on the wheel, you could.
Do something else.
You know, a couple of people you're talking to, you who understand the M twenty five trials and tribulations.
I'm interested in those.
You talked about the supply demand dynamic, the fact that sort of may your headache is getting enough vehicles into your client's hands.
How much more of a.
Headache is that when you're still trying to negotiate with workers, particularly with the United Auto Workers.
I mean, how is that going to your bit of the business.
Well, I think the main thing for us is, you know, the workers are our team. We're all one team. And you know, one of the things we're proud of is we build more vehicles in America than anybody else. We employ more hour league guys in than anybody else, we export more than anybody else. So it's a team that's doing these and we're happy to produce all these f series of vans and pickups in the US. So when we look at that, it's going to go through that process. Now,
this is a normal negotiation. I'm not in the heads and throws, but I can say I was in Kansas City this week visiting our team there because we'd just gone to three shifts on trendsit earlier this year. Because the demand is so strong.
For pro CEO Take Cannis. We always talk about evs in the context of the consumer, and we don't talk as much about these small and large businesses buying out fleets. Thank you so much for your time.
Time now for work shifting.
Look, it's where we're going to have a look at the changing landscape of the labor market amid all of these vases and technology. And first up, after many layoffs tech employers, they're now beefing up staff with specialisties in AI.
Of course, the.
Bay Area is now quickly becoming the epicenter one for you. And meanwhile open ai is on track for one billion dollars of annual revenue. The businesses adopting the technology behind chatchpt and turning back to that court ruling canceling the SEC's order to reject Grace say at Scale's spot Bitcoin ETF application.
Gray Scale CEO Michael Sunshine joined Bloomberg TV earlier. Let's taking listen.
We will have to see upon the final operational procedures that come through that final mandate that the court will issue.
So you don't know, but you may.
We don't know what the final opinion will say until we reach the end of that period.
Correct, is there.
I've been reading at us from me yesterday too, that you know, you may have won this battle, but then lose the war, and that there's a bunch of other competitors now, so now you're not gonna be the only horse in town.
Yes, So this is a topic we've talked about before, ladies. It's really a world in which there are multiple Spot products is a world that Greyscale has long been ready for. There are multiple bitcoin futures products. We believe that there will be a world in which there are multiple Spot
bitcoin products. That being said, we want investors to have choice, and some of the things that we do think investors will look to when they are making those allocation decisions are the size of the fund, the liquidity of the fund, the track record of the fund. Right, Let's not forget that GBTC is the largest bitcoin fund in the world.
It's owned by millions and millions.
Of investors, it has three plus percent of the outstanding bitcoin supply, and really now has almost a ten year track record of operational success. Right, Whereas a lot of the other products coming to market are really making use of gbtc's operations, disclosures, reporting and GBTC is really paving the way to broaden out that market.
There's another as of market question here, and it's not just about the pace in time. It's about the structure.
And the fees.
Because if you look at Blackrock investcal Fidelity, these are asset managers with a history of coming in low And if you look at the fees that you have offered and really has made a very profitable entity for a digital currency group and gray Scale, how much lower exactly can fees get for the grayscale product in the form of an ETF.
Well, what I've committed to historically, and we'll say again to you today, is we are committed to lowering fees when GBTC converts to an ETF. We'll obviously have to come back on and talk to you about what the fees are when that conversion actually happens.
So the other strangeness here is the discount that the GBTC is currently trading at. You had gone from twenty four yesterday to fifteen below net asset value back to twenty Can you answer to this market volatility here and the uncertainty that investors are grappling with as you head towards this process.
Well, there's a couple of things in that dynamic. So number one, there certainly was increased trading volume yesterday in GBTC, a lot of excitement and enthusiasm based on the victory that GBTC shareholders had in the court yesterday. Now, as we eventually approach an ETF, you'd expect that eventually there will be an arbitrage mechanism through the ETF that will
allow for any premiums or discounts to be eliminated. That's a really, really important function of why ETFs serve in the capacity that they do, and it's really the core of what we've been fighting for throughout this entire lawsuit.
Let's got some more bloombogtion, Ali bask here. That was the interview that we wanted to get. You got it. What else did you learn from it?
Some things are really important here.
If you look at the way GBTC, the Greyscale Bitcoin Trust is trading. When I sat here with you yesterday, ed, it was at a fifteen percent discount to net asset value. That has gotten a little wider today to twenty one percent as I sit here with you today. Why because they're still on certain empty around the path forward to an ETF for GBTC. More around that timeline, especially one of those key concerns here, and you heard it from
Michael Sun and Shining himself. They don't know yet whether they have to refile to convert to an ETF in the wake of this process. And remember there is a timeline here. We don't know whether the SEC will fight the decision. And Michael Son and Shine himself said that this is day one of a forty five day process in which the SEC can request potentially an unbanked hearing. Now, the ruling yesterday was three to zero, so this is not quite likely per se. It would definitely be going
against what the court had said unanimously yesterday. However, it could certainly happen, and it would hold things up even further.
These things that have a quick but Shanani mask is always quick with the information.
We thank you so much. Welcome back to make tight on a jam.
Countine hyjen Ne York and id Love in San Francisco. One name that's out performing on the megacat side Apple up one point eight percent. We know the story, Caro, I know what I'm doing. In a couple of weeks, time. This one's exciting.
Yeah, it's twenty four hours ago that you got that invite for Wanderlust something travel and wonder what it means. That's what Apple is calling its next event anyway, set for September the twelfth, where the company will unveil the iPhone fifteen line. We understand it's next generation smart Watchers. Of course, all of that is according to our chief correspondent, Mark German, who always knows the news ahead of time.
Mark Wanderlust, Just what exactly do you think they're hinting at there if it's not the iPhone fifteens and the smart Watchers.
Yeah, I mean, I don't necessarily think the name of the event Wanderlust, is hinting at much. But if you look at the Apple logo in the invitation, the colors in there will be the colors of the next generation prophones. There's going to be a navy blue, there will be a new version of the space black. There's going to be a new gray, which is closer to the look of natural titanium, the material they're switching to for the
iPhone fifteen pro in Promax. And then there's also going to be another new color silver, a new version of silver and white, so those colors are hinted at in the logo and then you see sort of a powdery substance, a powdered metal substance, And I'll have more on that soon, but definitely this is going to be around three products, the iPhone, the Apple Watch, and the AirPods, so the high end and low end iPhones, the Apple Watch Series
nine and second generation Apple Watch Ultra and updated AirPods Pro with a new charging port USBC.
You know, Mark, the color is important. My smartphone of choice is blue for Chelsea Football Club. But are we actually going to get any hardware updates in the fifteen relative to the fourteen? You know, you talk about this a lot, and you're reporting that generation's generations. Sometimes they're just very slight changes.
There's going to be major changes across all four models this year. So the fourteen was a pretty small update on the non pro side, the fifteen, the regular fifteen, the Regular fifteen plus those are going to get a forty eight megapixel back camera, the A sixteen chip, and
the Dynamic Island. So essentially the hardware upgrades in last year's fourteen Pro, the fifteen Pro and Pro Max will get that new titanium frame I mentioned the first three nanimeter Apple process or the A seventeen chip, much thinner bezels borders around the display, coming close to one point five millimeters thinness borders around a display in any mass produced smartphone. You're also on the biggest phone going to get a new camera. It's called a periscope camera, that's
the technical term. It allows you to do much deeper optical zoom. So right now you can zoom in at a rate of three x. This will now double to six x without needing to use digital zoom. So you'll retain that clarity because it uses the actual hardware lens for the zoom rather than software and.
The A The big change having its waymark with the charging.
Yes, that's exactly what I was going to say. The big fuss, I think is going to be this USB C port. This is going to be the second time in the history of the iPhone that they've changed the charging port. In twenty twelve, they move from the iPod connector to the lightning connector. This time they're moving to USBC, slightly larger than the connector they use today, still reversible,
but on the pro phones. It'll allow you to do very fast data transfers over the cable, so if you're taking high resolution video, you'll get those big transfer speeds there. The downside is if you've been using lightning connectors to charge your iPhone over the last decade, you're going to need a new cable. The good news is the new cable will come in the box. The bad news is that you may need to buy a new charging adapter,
the brick that goes into the wall. Because you're moving from USBA right or USB B two as others call it, to USBC. It's a different sized connector, and so some people may need to make that change.
All right, Apple up one point nine percent September twelfth, the dates watch our thanks to Bloomberg's Mark German. Okay, Apple isn't the only company breathing new life into the smartphone market. Huawei has unveiled a slim bezeled Mate sixty pro, sparking hopes that China tech firms are able to overcome US sanctions and curbs, giving life to that domestic smartphone market. Bloombozi and King is with me on set about what was a strange surprise overnight I'm going to say two things.
I hand it over to you. The details of this phone were not registered with the Chinese regulator, which is unusual. But what happened was loads of local media, ATHLETs and fans in China did tear downs. They tore the thing apart, and that takes us to the processor, which they say was etched with five nanometer nodes over to you. Why is that surprising?
Yeah, I mean we need to understand, Dana. You emphasiety correctly. This is speculation at this point. Yes, Well, the bottom line is if they have that kind of technology in their semi conductors, then it's almost impossible to have done that without circumventing direct US trade restrictions on supplying that
company with technology. Something is going on here if all of these speculation is correct, and you know, I'm sure the US government is taking a long look at that coincidence that they announced this when Gina Ramando, the Secretary of Commerces visiting China.
You'd be the judge.
I mean, it's interesting because they almost well it was a very subtle announcement and it's mainly taken off on Wabo and people trying to piece together the pieces here, and really we understood, potentially thought that some stockpiling could have gone on prior to this, right with TSMC chips.
Could it be that.
Or is it more in line with a story that you brought us last week that there are these sort of shadow supply chains, shadow chip manufacturing going on across China at the moment by Huawei.
Yeah.
I mean again, there's a lot of speculation, there are a lot of moving parts going on, and you know a lot of that based upon our reporting and our understanding of what is going on. The bottom line is Huawei is not a major smartphone maker anymore, not even close. Remember they got rid of their smartphone division because of the weight of sanctions. So really what's going on here is kind of a symbolic or a concentrated effort to get technology to show that China, hey, we're not out
of this yet. You're not hurting us as much as you think. Maybe we've got a future down our own past. That's how it's being interpreted. Who's doing it, how they're doing it. That's something that everybody is chasing, including us, right now, and that could have major implications for the relationship between the two countries.
So The basics of it are that Huawei has been on the entity's list since twenty nineteen Trump era, and the reason US government did that was accusations that Huawei was helping the Chinese military with technology. But what was notable ever night is lots of Chinese suppliers saw their stocks jump. What did you make of that? Is the is the inference with drawing and again Bloomberg's not being
able to verify many of these local media reports. But is it that actually China could stand on its own two feet in five G for example, which is not yet done.
Yeah, I mean that's been the concern all along, that by basically pushing them into a corner, they would go in their own direction, develop their own native technologies, and be no longer dependent upon the West and no longer need to really interact with the West because they have such a huge of their own market. And you know, this development, even though it's relatively small, and even though
it's probably only a relatively small number of devices. You've got to remember as well, from a technology perspective, anybody, well not anybody, but you can make a few chips right, very high quality, very low you know, nodes in terms of manufacturing mass producing them is an entirely different thing. But the military doesn't need hundreds of millions of these things. So all kinds of alarm bells ringing around this inky.
Just such in depth reporting, thank you so much, as we peel back the onion of really what's happening over there with Huawei. Meanwhile, look, we're just going to go outside the world of tech for a moment.
We want to.
Quickly check in on some stocks that are really moving.
Marijuana stocks.
They're surging after the US Department of Health and Human Services has actually sent a letter to the Drug Informance Agency urging them to loosen rules when it.
Comes to cannabis.
A lot of these stocks are actually getting stoped on volatility. We're up eighteen percent, let's call it on tire. We're seeing some of the ets that are in lockstep really powering on highre So this is a focus of course. Last October, Biden rolled out some initiatives focused on marijuana, including the pardoning all prior federal offenses for simple possessions. So this looks like we could be taking another step
in that direction. Meanwhile, coming up, look, Bosh is in the process of acquiring TSI Semiconductors.
I'm very pleased to.
Say we're going to be joined by Busha's CEO Sefn Harten to discuss the company's plans right there and in California.
Yeah, and speaking of chips, I'm also taking a quick look at shares of Nvidia, and the market's slow down just has not stopped analysts from ratcheting up their share price targets. Rosenblack Securities has a target of eleven hundred dollars a share, which if Nvidia hit, that would give the company a market value of more than two point seven trillion dollars. By the way Apple's two point nine trillion valuation, they would become trillion ish rivals. Well, talk
about more chip stuff. Next, this is Blombo Technology, all right. Global giant Bosch will close the acquisition of US chip maker TSI Semiconductors in the next week. The world's biggest auto part supplier plans to invest more than one point five billion dollars in its California foundry, expanding the German company's global bed on chips. To like to say that the chairman of Bosch's board, CEO Stefan Hartong, joins me here on set in San Francisco, so the deal will close.
This is something you and I have discussed in the past. The the question is how quickly you operationalize it and get that silicon carbe into your supply chain.
Yeah, that's obviously a story of a bit more work. Because we have got a great asset here with a great base and also about two hundred and fifty specialists. This is the most important thing to it. But there's a lot of construction to happen. We have to upgrade the site. We have to bring new machines, we have to bring equipment, and then the process chain which we
have developed has to be in place here. So we take some years, but we will get it speeded up as much as we can, so I would say in two or three years we will see results.
We learned from the pandemic era it's very tricky to plan capacity on the foundry side, and lots of people got it wrong. You already have two fabs in Europe, you add this third in California. Will you continue buying up these smaller fab operations based on your capacity forecast?
Well, right now with this set, we're working on so extending off app andresen and also extending our app and routling, and plus the partnership we have just joined with TSMC on the fab and germ they built, plus the fat we have now here with TSI in the States, which is great. That's a good portfolio, and let's say, a whole bunch of workload for us, which I think will first have to pull through. So don't expect too many further steps where we go ahead, but this work will be very busy for.
Us in the next years.
Silicon carbide Stephan, Now, what is the ultimate end total addressable market as you see it right now? Because there were some reports that maybe tests trying to downshift the.
Amount that uses within it well lower priced vehicles.
Is that a concern in any way or do you think just the ultimate market is still there and huge.
Now?
Silicon carbon has great benefits for the vehicles, right You can better charge the vehicle, reduce the losses in charging by fifty percent. You can extend the length of run of the vehicle by six percent so you can run the vehicle longer, reduce the battery size. So especially also for let's say more price sensitive vehicles, this is also
a great technology. The question right now obviously is it's not deployed massively in all vehicles because just the capacity on the world is not there, and it's ramped up a massive speed by multiple players. So I think it will have a massive impact on the electrification, but the electrification.
Itself also is ramping up.
So I would still see it as a as a great ingredient for all electrified actilications, not only cars, by the way.
And interestingly of course not just cars, but all the other products in which this is going to be useful. What about the ultimate consumer demand as you see it? We just had of course food pro on and Ted really talking us through how he still sees really demand not paying a problem.
It's more supply side at the moment.
Do you feel even with the us GDP dating we get today, you still confident in and demand for the sorts of products right now now.
For a product like secret Car, but it and also for electrification of vehicles in total, we have to get a bit longer. You the current situation where we have also risk in the demand side, are absolutely clear that it's globally and we still see inflation, which is it has been reported in Germany at six point one percent for example, as a contrast to also the US. So the fight against inflation will go on and that will
also soften demand in many products. But for the long run, and we talk here three to five years, demand especially for electrified vehicles, will grow massively and there's more a problem to have the supply ready for that demand in the future.
You know, doctor Hart and Bosch is a truly global company. Thank you for mentioning the European economic data as well as the US. But China really interests both Caroline and I. It's a daily discussion. You grew revenues there three percent in twenty twenty two. What does twenty twenty three look like based on your experience of doing business in the Chinese economy.
Well, the Chinese economy is much softer in the recovery as we expected it. We all see that. Plus we also see that the Chinese currency is much softer than we all anticipated it. That's the fact that obviously against the global growth and as obviously also thinks that even if China will report something out the GDP growth of about five percent, that's still areas for the global economy
growth in China contributing a third of the growth. That was kind of the story on the beginning of the year that may not be happening this year, but still Bosh sticks to its targets. We want to grow at six to nine percent this year, and we go for it on the global platforms, obviously before currency effects, because we don't know yet what the current effects we play out, and with the soft Chinese one, there is obviously work on the currency side.
Can you just go into the geopolitical side as well, so, farm because that must be a fascinating thing for you to have to navigate not just the effects risk, but ultimately supply chain risk. How are you navigating the headwinds when we see Gina Ramondo over in China at the moment, But still the Huawei issue that we just reported on, well.
The supply chain risk we had, especially on semiconductor obviously much less and also some other supply chain risks are much fewer of those currently because of the soft demand in China and though if you are export we have in China, that means a lot of materials are much easier available for the global supply, which is leading to
the better fulfillment of current demand. But still we shouldn't feel too safe about all of this, right, because if demand picks up, if China comes back with a bit speedier pace, right, and also the demand in the US goes back up in a higher pace, plus the European demand which is very low at the current size, then
we could also see against supply chain issues. So we're always on the watch and we are working with our factories and our sourcings and our partner heavily on getting these supply questions into shape for the next wave of demand.
Absolutely fascinating birds eye perspective, not only in the consumer but of course more broadly on geopolitics and global economies.
Bosh CEO Stephan Harten.
Music event Yes Again Investment event Welcome to invest Best, where twenty thousand people gathered in Atlanta, Georgia to boost their financial literacy and have a good time, all thanks to the platform and your leisure. You want here to learn about entrepreneurship, about investing, how to build wealth, how to build a network. They came to hear from the wealthiest black Americans, from cultural icons like Diddy, and from
money managers like Mike Novogratz and Kathy Wood. So what are some of the biggest money mistakes that a lot of these millionaires and billionaires are they've been making.
My biggest money mistake was waiting until I was fifty seven years.
Old to start my business.
It was a seat investor in Peloton, and I put three hundred thousand dollars in and at what point it was worth seven million at a billion dollar evaluation And to all my friends were on the board and they're like, dude, it's now scaling, don't sell. But I had never had a venture win, and so I was just so ready to bring the bell and I took profits. Still a great investment, and that seven million would have been worth threw one hundred million at the high the more.
And he might be blocking out some of his mistakes, but where he puts his money out real estate.
He likes his land.
But also remember he's got an e commerce platform particularly focused on black creators, on black companies, So he's focusing on the tech angle there of really his future and wealth. But also speaking about some of the best advice that they're giving at the moment, might novelgrats.
Are saying have a stop loss.
Like basically, no matter how convinced you are of particular technology, there I say, crypto, make sure that you have some sort of way of ensuring you don't well lose.
Too much money in that.
You know, it was so interesting to hear that that Peloton story form novograts that you should we should get that out there more. But what was interesting to me Kara a new city for you? What was it like being there in that particular city. One we don't talk about as much.
And actually we should talk about it more.
The amount of content creation because remember Amazon studios are over in Atlanta. There are some enormous companies that are investing in technology I think is based there. Becaucacola is over there, but really this is an Atlanta.
I have to say.
Everyone was so well dressed, like it was the funnest conference of EMBMENTU. But as a city, beautiful, hot, but everyone is so on point when it comes to how they're approaching life and delivering themselves.
Yes, all right, check carry's piece out on Reels, on TikTok and of course on X as well. Okay, rethinking things in what venture capitalists do, but it's not always easy to do that within existing cities. So today we take a look at the trend of vcs wanting to build the ultimate tech dream, better cities Bloomberg Cerah McBride here with the Tech Daily news letter. This was really interesting one because San Francisco often thinks of itself in
that way. Right we are tech, We have built this cit the other way, and we have a load of problems. Just give us the overview of your Tech Daily.
Every couple of years, somebody in tech decides they can build a better city. They give it a go, and then it just kind of fizzles out. And then somebody else comes along, seemingly unaware of all the previous efforts.
And tries it again.
And this seems to be what's happening right now with these efforts in Solano County, just northeast of San Francisco, to build a better city, Sarah. Many names that we know that are behind big, big VC, names like Mike Moritz, who is one of the vcs from Sequoia Capital Mark and Jason Lorraine Powell Jobs who has Emerson Collective. So smart people who've accomplished a lot and have a ton
of money. So if anybody can do it, they can, But many, many people just like them have thought the same thing previously and unfortunately failed.
Wilson Keynes even gets a shout out in your story. Absolutely love that bit, Sarah McBride. We thank you well. That is for this dedition of bloom back technology.
And yeah, please recap on the podcast. We're on iHeart, we're on Spotify, and we're on our Bloomberg platforms. From over here in San Francis, going out on the East Coast, New York. This is Bloomberg Technology.