Twitter-Musk Scrutiny, Apple Design Chief Departs

ventures from Twitter to Tesla. This after his Russia Ukraine tweets, especially given tesla strong presence in China and AI development, because the White House may put more restrictions on China technology from AI to quantum computing. And Apple design chief, who replaced Johnny I've is leaving the company. According to Bloomberg's sources, how she impacted the product lineup and what it means for iPhones, iPads, and the incoming mixed reality headset.

Biden administration officials are debating whether the U s should subject some of Elon Musk's ventures to national security review. This. According to Bloomberg sources, this would include the Twitter deal, Tesla, SpaceX Is, star Link Network, and US officials are uncomfortable with what they see as Musk's increasingly Russia friendly stance and his plans to buy Twitter with the help of foreign investors. For more on this, I want to bring

in Bloomberg's Dan Flatney and Sarah Frieder. So, so Dan, let's start with you. Tell us what we know at this point about this potential series of national security reviews. Right. So, I think that in many respects, the reviews are centering on Twitter and on the consortium of investors that Musk has lined up to help in his acquisition of the company, if that is what ends up happening at the end of the day, and those investors, some of which are

based overseas. Because of the makeup of that consortium, there is a potential for the Committee on Foreign Investment in the United States to get involved in looking at the

interests there. Now, the question is sort of twofold at that point, and one is whether the committee actually has jurisdiction, which sort of has to do not just with the financial stakes that these investors are looking at, but whether they'll have any controlling interest in Twitter, whether they will be on the board, whether they'll have access to non public information, things of that nature, and that will be

sort of in the deal. So Cyphius does have the ability to potentially ask Musk or ask the the those involved in the deal for more information on that end, and then it sort of becomes a policy decision for the Biden administration to make as to whether they would want to step in and stop that deal or potentially more likely uh have some revisions or some some mitigation effects on that at the At this point, it seems somewhat unlikely that that's the course that they will take,

but there is some interest in perhaps trimming musk sales a little bit in terms of his rhetoric out there, what he's saying publicly, and some potential risks with foreign investment in some of his companies. Sarah, we're a week away from the day that this deal is supposed to close.

How big a wrench is this in in that schedule? Well, Emily, we have been on this show talking about the fact that Elon Musk wanted to buy Twitter, and then he didn't want to buy Twitter, and then he wanted to again, but there were some some stipulations that Twitter didn't want and just back and forth, all the legal filings, all the subpoenas. Finally we're reporting that that talks are cordial, that they're all on track to get this deal done

by October. And if the Biden administration is the wrench that folved in its way, that would just be uh, such a perfect um climax of the story. It's it's really it's really been a bumpy ride for the company and and for Elon Musk here and for US reporters at Bloomberg as well. Um, but listen, you know, it's hard. It's hard to stay until they actually say they're going to do a review. Um, whether this is going to delay anything. As far as the folks involved in the

deal are operating, they are. They are on track to meet the judges deadline, which is five pm Eastern time next Friday. If they don't meet that deadline for whatever reason, um, you know, it could end up going to court. Um. So I think that they're pretty head down on that. However, you know, scipious reviews could come still, uh, and I think that they would have to respond to that whatever it ends up being. Dan and you're reporting. You talk also about the Russia. You Crane tweets you on Musk's

threat to cut off Starlink access to Ukraine. How much are officials really can concerned about this potentially Russia friendly stance from Elon Musk. I think that there's a couple of things that they're looking at there. Certainly there is the rhetoric that Musk and others have engaged in on this issue. In addition to that, I think that there is the Starlink issue, the satellite communications network that Musk has helped set up in Ukraine and is looking to

set up in Iran as well. And I think that there's some concern from defense officials and from those in the administration that giving one private individual and a private company so much control over the kinds of communication and the ways of the methods of communication UH in these very sensitive areas is potentially a risk, both on the sort of redundancy standpoint in case that communication network were to be where to go down or to be cut off for some reason, and also just in terms of

that giving one individual so much influence over US foreign policy to a certain extent, So I think that there's some concern about that. Beyond that, there's also generally some concern on the part of the administration on Chinese investments and involvement in in US businesses. And this is sort of separate from the Ukraine Russia issue, but it certainly enters into the cifiest discussions around Tesla and some other companies.

So I think that there is sort of broadly a desire to more carefully scrutinize foreign investment in the US. Whether Musk runs a foul of that effort here is is sort of a separate issue, but that is definitely something that the administration is looking to be more active on in general. Meantime, Sarah, there's this reporting that Musk is planning to cut seventy of Twitter's workforce. This is a seven thousand company at this point. That's a lot

of people. What's the real action inside Twitter about this news? It looks like we lost Sarah for a moment there, Um, Dan, while we get Sarah back quickly, Can you tell us the response from the White House so far on your reporting? Sure? So. Treasury Secretary Janet Yellen was asked about this today. She basically said she cannot comment on ciphious actions, which is a pretty common response, and that she's broadly supportive of

what Musk has done on the communications front. The White House is saying they have no knowledge of these discussions. But I think our reporting is very solid in the sense that there are these discussions happening within the White House. There is sort of this broader overall question of what

do you do with a problem like Elon Musk. I mean, this is the richest person in the world who is exerting an outside influence on foreign policy, and I think that there is a desire to rein him in a little bit, and there are some some ways to do that that are both political and sort of non political. Um, whether Syphius gets involved at the end of the day, I think is it going to be a policy question?

And my reporting sort of shows that it would be a little bit of an outside chance that that Cipius would get involved at this point, though not totally outside the realm of possibility given some of the foreign investment in the in the deal structure. So it's just something we'll have to keep a very close eye on as things move forward. Okay, so, Ed, why don't you address the news that broke in the show yesterday that Elon Musk is considering laying off of Twitter's workforce, which will

be thousands and thousands of people. What are Twitter employees saying, Yeah, my editor and dear friend Sarah had some technical issues there no worries. Look Sarah edited the story we put out on Friday, which is that it's been wellness Month at Twitter, and the company has been sharing messages about work life balance, looking after yourself. The messages coming out of Twitter a frantic. A lot of staff are very worried.

The worried that the restricted stock unit award that was supposed to happen early next month will either not happen at the same date they thought, or it won't happen at all. They're looking into legal options, according to sources, about what happens if they are laid off, do they get the right kind of severance. They're also pretty unimpressed with management. We're told, you know this communication that Elon Musk was considering laying off percent of the workforce, That's

not even what's upsetting Twitter staff. I'm told that's what what is upsetting Twitter staff is that actually Shawn Edgett, the Chief Legal Council, said they had discussed cuts and layoffs, but that they ended in April when they had that definitive murder agreement. Well that's a very different message to

what Start management of told staff previously. So it's a pretty unhappy praise, and I'm told, along with my colleagues Kurt Wagner and Max Addler, that morale across San Francisco, New York and London is understandably pretty low right now at Twitter understandable indeed, Okay, Ad Ludlow, thank you, along with Sarah Fire and Dan Flatteney flatly. Of course, we're gonna continue to follow all of your reporting on this

through the weekend. Anxious investors are selling out of social media stocks, with thirty five billion dollars in market value wiped out just at the open, this following Snap reporting its slowest quarterly sales growth on record. For more honest, I want to bring in Craftsman Plus founder and CEO

Alex Uruku. So what is what Snap reported here signal to you, Alex Well, I think there's a different like macro environment that we should talk about where advertising in general is shifting from brand advertising spend to performance spend, and the problem with Snapchat and a few other social platforms it's more geared towards brand advertisers with the lack of first party data um that Apple has recently changed with their A T T framework really relying on first

party day to drive that value. The issue with Snapchat is it doesn't have that first party data, and opposite of TikTok, which is a very sticky platform driving a lot of engagement, doesn't have that stickiness factor either. That's why it took a big head today in the markets. How much do you think these are short term issues or are they long term issues? I think we're going to see more long term issues here in just this social space. So what what the trend is happening right

now is retail media. So going back to first party data, there's all these other smaller platforms that are coming up in the space right now. I think of Marriott, think of Lows Home Depot, They're all building ad businesses. Amazon and Walmart's kind of already paved the way for that. So because they have this first party data, the advertising dollars are no longer just spent on Facebook and Google. So you're gonna see kind of like a deteriorating spend

across all the social platforms leveraging these smaller audiences. So what does this mean for What does this mean for alphabet What does this mean for Twitter, which obviously has another unique storyline going on as well. So Google has a lot of first party data on Gmail, YouTube, they have a lot there, so they're gonna be fine. They have a lot of search intent, so I'm not worried

about Google. Twitter is more one of the platforms like Twitter, Pinterests, and Snapchat are kind of the three that I'm more worried about and concerned about their ability to drive performance for advertisers. Uh. Meta they still have a lot of first party data, their algorithms are really robust. Uh. I think they're going to still be able to be a player in the space and drive a meaningful value and

continue to have a prosperous business. Even if Mark Zuckerberg isn't as focused on Facebook and Instagram as he is on trying to pivot into the metaverse. I mean, Facebook is just a machine, so that coming has a lot of great talent behind it. A lot of folks have built that up. So even if he is focused on metaverse, I still think that platform is still where majority of advertisers spend their money and that's not going away at least anytime soon. Now, and we just happened in New York.

What are the big themes that big takeaways about advert rising more broadly is changing. Yes, so there's there's a different framework. So Apple just announced their scan for update, which is kind of their framework of how to handle privacy. And what's what the big changes are is we need more data and so how do you get more data. You have that first party data, but you also have attribution windows, which is the time you can actually take

credit for an impression or a click. And so what's happening is they're opening up those attribution windows to feed more data to these algorithms that are these AD platforms, which is ultimately going to boost the whole space. So we actually should see from this new release with Apple, the scan for Update, that there will be an overall boost in general and just AD dollars flowing to these platforms.

So do you see a hierarchical shift here and where uh, you know the biggest AD dollars are going or you know the recipients of the big AD dollars, Like, how does this marketplace look different, let's say in five years. Yes, So right now what's happening is, you know, Facebook still a big player in the space, Googles to do well. Apples probably do emerge into it in a meaningful way.

So we should look at for Apple. TikTok's got its stickiness and get a continue to drive kind of those like high flyer advertisers that are looking for that like Mega win, they can find that on TikTok. So that's they still have the dream. The ad business hasn't been totally proven out, but they have the stickiness factor. Uh, it's all these other platforms what we're kind of seeing

in the space that's interesting as well. That was brought up an ad weeca is connected TV and so you're gonna see a shift from you know, these digital platforms that are just on your you know, your phone and the smaller device is shifting over to larger screens connected TV with Netflix, Disney getting into this space. And what's really happening is with all this extra inventory on the space,

advertising is about supplying demands. So there's advertiser demand and there's the inventory of the publishers supply with all these other platforms opening up their businesses for ad dollars. And again this is from the macro environment of Hey, our business is hurting, we need to make money. What's an easy way to make money? Turn on ads. So everyone's

turning on ads and building it that way. But you see these companies, the more inventor you have in this space, and demand is ready lowering that we're we've talked about previously, So lower demand, more inventory, We're actually gonna see global costs of AD impressions probably decrease over the next five years. Interesting, Okay, Alex Maruca, CEO and founder of Crafts and Plus, thanks so much for bringing your perspective to us this Friday. Alright,

coming up, another top Apple executive stepping down. How this departure opens a major hole in Apple's design team. Next, this is Bloomberg. Apple's head of hardware design, Evans Hanky, is leaving the iPhone maker three years after taking the role, creating a significant vacancy at the top of the company, known, of course, for its iconic designs. This according to people familiar with the matter and our own Mark German's reporting. So, Mark, what do we know about her depart archer and why

she's leaving now? So this is a pretty significant departure. Evans Hankey is the vice president of Industrial Design, reporting to the CEO. She essentially replaced Johnny I've, Apple's former chief design officer in upon his departure. So she's been in charge of the look and feel of the iPhone, the Apple Watch, the iPad, the Mac, all of Apple's products for the last three years. The departure was announced internally within Apple uh this week, and she'll be departing

in about six months. The notable news here is that there's also no replacement for her, so Apple hasn't been able to come up with since she announced her departure internally who would replace her at this point, Well, filling Johnny I's shoes was always going to be a difficult job for you know whoever, I was gonna try to do that. But do we know why she's leaving after just three years? Yeah, at this point, it's unclear to say for certain why she is leaving. She's certainly not

at the point of retirement. She's only been in that role for three years, though she has been an Apple for about two decades. She was basically the manager of the industrial design team under Johnny I've right, so her background is in product design, but she ran the team as a manager and it was pretty much a natural succession for her to take over for Johnny. He was her number two in that respect. There are some other senior designers that still remain, but to tell you the truth,

many of them, many of Johnny Ives close collaborators. Most senior designers over the past two decades, the ones responsible for the designs of the products that we see today. A lot of them have either left to start their own firms, left to other companies, and some of them have joined you know, i've's love from company as well, But there still are a few top designers there. There's

Richard Haworth. He temporarily had this role between seventeen, still reporting to I'VE, but he's not someone who wants to manage a team, so I think it's unlikely that he takes that role again. But certainly this is a major development for anyone who's a fan of the can feel of Apple's devices. How do you imagine this will impact the product line up? Yeah, I mean the way Apple's product development process goes is they could be working on things in their design labs right now that we won't

see for two to seven years at this point. Right, if you take a look at the current Apple product lineup, the Apple Watch Series eight has the same design as the Apple Watch from four or five years ago. Right the iPad pro same design as four years ago. Uh. Some of their other products have legacy designs. The iPhone fourteen same design as from to three years ago. Right, So we are in for a big change to Apple's designs, probably over the next year or two, just because those

designs have lasted so long. And I think we're going to only see the fingerprints of evans Hanky, evans Hanky's leaderships over the design team in the next year or two, and then maybe four or five years in the future, we'll see how the design evolves. All right, Mark German as always thank you. Meantime, insta Cart is reportedly holding off on plan to go public until at least next year. The food delivery giant had been planning to put its S one filing out this week, but is said to

have reconsidered given the turbulent market. Instacart slashed its valuation to about thirteen billion dollars and had decided not to go public until market conditions improved. Reddit says it now has more n f T wallets than the popular trading website open ce. Reddit Vault, which lets users create wallets to use his avatar, says it's got more than three million such wallets open see the largest n f T marketplace by all time sales volume has around two point

three million active wallets. Reddit is preparing for its own public debut sometime in the next year. Welcome back to Bloom're Technology and Emily Chang in San Francisco. Sources tell Bloomberg the US is looking into new rules that would limit China's access to powerful emerging computer in technologies, potential

plans focusing on quantum computing and artificial intelligence software. For more on these escalating tensions between the US and China, let's bring in Strategy Risk founder and CEO Isaac stone Fish. So tensions, Isaac have been ramping up for a while,

and this yet again, where is this leading? So if we step back and look at how negative things have been between the United States and China and the very real possibility that China invades Taiwan as soon as this year, again not likely but possible, possibly the US and China are leading to war. Wow. I mean, that's a that's

a profound statement. Why go that far? We are not in a world that's past geopolitics, and I think we had this nice global mental break of big power wars from the fall of the Soviet Union and from after the Korean War, in the Vietnam War, the Proxy War. Now we're waking up to the fact that great powers do fight wars with each other. They have throughout history, and they're very likely to again. And China has been very explicit about its willingness to retake Taiwan, even with force.

The US has been very explicit about its willingness to defend Taiwan with force. And so if China calls the United States bluff that very much could lead to a active hot war between the world's two most powerful countries. How hot does this war get? So it depends on how lucky the world is. It could go anywhere from a limited regional ish war to something that was similar

to the Korean War to World War Three. And it's stunning to meet as we talk to people in the investment community that the US government and certainly the Chinese government are awake to this possibility, but the investment community seems to want to keep pretending that things will go back to where they were in the Obama era of friendship with a sprinkle of competition between the US and China. And those days are over. M. What do you think

this would mean for the tech industry. It would be transformative, catastrophic to many, and very positive for some who plan ahead. I think Apple, Tesla, other major companies are recognizing the difficulty of sourcing from China and trying to explore other

supply chain alternatives. I think the absolute cratering of the Chinese market would be cratering for a lot of businesses bottom lines, and I think, frankly, a lot of companies haven't started thinking about this from an ethical perspective, which is, Okay, I'm a major US company, I have thousands of staff in China. If China invades Taiwan, will be aging view my staff as enemy combatants and how do I deal

with that? Now? There's a lot of action with Afghanistan and with Ukraine of tech companies taking care of their employees when those countries descended into war and chaos. What plans do tech companies have in place to take care of their own in China? If China is to invade Taiwan well, and if indeed that does happen, how does

that play out? Especially given the way we've seen the US come to Ukraine's aid to a certain extent um, but Taiwan being you know, you know, very also unique situation, so with the caveat that, it's impossible to predict the future. I'm actually quite heartened by the US restraint towards Ukraine because I think the message that sends to Beijing is not We're going to treat Taiwan like Ukraine, but we are preparing for the possibility of you to invade Taiwan,

and so we're fighting a two front war. We're not going to fight both Russia and China at the same time. If you invade Taiwan, we as a country will be ready for you, and we're supporting what the Ukrainians are doing, but we're keeping a lot of our powder dry, so to speak, and hopefully that turn. So you think the US would be much more hands on if China were to invade Taiwan. I don't think Congress would let the United States not go to war with China if China

launched a full scale invasion of Taiwan. This is all terrifying, Isaac, I mean really terrifying, especially given the thirty years of relationship building. I know you and I both spent um many years in China and it's it's a it's a very different relationship. Um, you know, it's it's evolved into a very different relationship over the last several years. You know,

what about a new administration. You know, we've got a presidential election in a couple of or is this something that you see carrying on no matter who's in office. The U. S. Navy chief just talked about the possibility of a war with Taiwan this year next year. I'm much less worried about how things are going to play out in the medium term. I'm far more worried about again, if if I had to bet, I'd say it's less

than fifty percent chance going to happen. And I think it's possible that a future Trump administration, if that happens again, Trump is more likely to sell out Taiwan for other concerns. I think another Republican or another Democrat would be far less likely to do so. I think it's possible that Beijing would think that right after the election, before the new president takes power, is the ideal time to strike. Hopefully they don't. Hopefully they decide never to try to

seize Taiwan by force. But we haven't been having this debate, and we haven't talked about what should the US do now to both prepare for war with China, but also how do we make sure that we act ethically as well. I'm quite worried about our atrocious history with Japanese Americans and World War Two and German Americans and World War One, and we're already seeing bubbling of that with Chinese Americans.

And I think so much the conversation about war is how do we prevent the war as opposed to regardless of what we do, the US might go to war with China, and how do we conduct that war in a way that's most ethical and most adheres to our values? Uh, certainly an interesting perspective. I do want to get your

thoughts on the latest Blueberg Dues reporting on TikTok. We did some analysis of the deal that the US government has struck with TikTok and its parent Byte Dance to store US users data on Oracle servers, but Bloomberg News has concluded that this would still leave US data vulnerable. What's your take on this. TikTok in a time of good relations between the U S and China is barely a threat compared to other big social media platforms. You could put it roughly in the same category as Facebook.

TikTok in an era of tensions between the U S and China or an era of war between the U S and China can easily function as a basically national sleeper agent for Chinese intrusion into US homes, US hearts and minds, and as such as very dangerous and I think any sort of deal that gets struck between the US and Oracle and TikTok won't allay those concerns. And so if tensions reduce between the U S and China,

I'm not worried about TikTok. If you have a Chinese app on tens of millions of phones and the US and China are going to war, that's a huge national security concern and one that I don't think investors or the administration has fully unplugged unplugged. Okay, Uh, that is a bleak assessment indeed. UH Strategy Risk founder and CEO Isaac stone Fish, thank you for joining us. Obviously a

major topic we're going to continue to follow. Now. In a lighter note, Google chips not the ones in their chromebooks or smartphones, quick takes karam More sheds light on the company's latest marketing push. Google is getting into chips,

the crunchy kind that you can actually eat. You can probably tell from the package that they're only available in Japan, and here they're part of the marketing push for the latest Pixels seven phones from the Internet Giant, designed to remind us that Google also makes the other kind of chips, the ones made out of silicon. The Pixel has Google's own Tensor G two chip, the company's most advanced AHI powered cameras, and it's literally of Internet services, from Google

Maps and Photos to YouTube and Chrome. It's hard to imagine Apple resorting to the potato to ploy, but that's because people already know and love the iPhone, whereas Google is running ads in the US saying did you know Google makes a phone? It says something about both the ongoing failure of Google's Pixel phones to sell in big numbers and the company's opportunity in Japan. In the US, Apple and Samsung account for seventy four of the market,

whereas in Japan Samsung barely scraped together seven percent. That's a missed opportunity for Google, who's Android operating systems run Samsung concepts. There's scope to take chunks out of its Silicon Valley rival by sealing business in a way that Samsung has so far failed to do. And if it takes spice see savory cheesy gimmicks to help bring attention to the cause, so be it. So how do they taste? M It's not bad, but there's a far taste your

meal on offer and Google wants a piece of it. Crunchy. That was quick, takes karum more. All right, coming up the great resignation bleeding into the crypto industry, this time shaking up the c suite. We'll talk more about this next. This is Bloomberg, turning now to today's Crypto report and the Bloomberg Big take. Cryptos two trillion dollar wipeout has

recently cut a path through the c suite. More than two dozen high ranking executives have vacated their posts in the last two It's Loan Brett Harrison of f t x U S and Jesse Powell of KRACK in just two names in the shakeup. Bloomberg's Hannah Miller joins us now with more Hannah, who else? Yeah, I know it's been a deeply unsettling slew of announcements of ceo stepping down. Um, I can think of Alex Matschinski over at Celsius, Brett Harrison over Everrett f t x US, and Sam Tribuco

over at Alameda. So it's been a lot of big names making big changes and stepping back from their companies. Why is this happening now? Obviously there's a huge there's a ton of altility in the market. Is that it? Yeah, there are a number of factors here that are contributing to change some of the office at major crypto companies. So yes, Uh, the huge downturn that's affecting the market and causing crypto winter is a major reason why CEOs might be stepping back. Some are at companies that have

had serious, serious issues. I'm thinking Bank to see, like with Celsius and others are just looking to kind of save their sanity and have even talked about taking time uh time off to see friends and family and spare their mental health. We've also seen growing regulatory scrutiny as well. How a venture capitalist crypto venture capitalists approaching this or maybe are they behind a number of these departures? Yeah? So uh you know, crypto vcs are some of the

industry's biggest cheerleaders. We have seen a drop in funding for bockchain startups, though it was a thirty seven percent declined to four point four billion dollars during the third quarter. I think they're trying to see the bright side of this. In some cases they're looking to They're saying that actually more experienced CEOs who might be coming from traditional finance or have actually helped companies go public might be filling

these roles. So it's a new level of maturity for the crypto industry and kind of an optimistic take on what's happening here. How much more pain are we expecting? We were speaking with Caveta groupd of of Delta Blockchain earlier this week. She thinks bitcoin is gonna fall to twelve or thirteen thousand dollars um, you know, even further than it's already fallen. And if that happens, I can assume there's gonna be a lot more attrition. Yeah, I have talked to people who have said we should expect

more layoffs down the line. That's been a huge issue for the industry. Um we're seeing startup s buckled down for the next eighteen to twenty four months. Speaking sure they have enough cash on hand to last crypto winter. I haven't talked to anyone who thinks this is going to resolve anytime soon. Um, but yeah, people are still invested in blockchain's long term prospects. All right, Bloomer's Hannah Miller, thank you. Continue to follow another week over, but brace yourselves.

Next week is a big one with fifteen point three trillion dollars of market cap reporting earnings results, lots of that big tech to break it all down, Bloomberg's and Ludlow so ed we're watching a lot of big names next week walk us through it. Yeah. I feel like we've just been dipping our toe really this week, right with Tesla and Snap. Next week it's the big ones, you know, the mega caps who have an important role to play in markets because of their waiting on major indices.

But it's just such a big lens on the world. Microsoft alphabet, the parent company Google. On October, Twitter, look, we can expect a press release potentially. We don't know what's going to happen with the Elon must deal, but they're not going to do a normal earnings. You hope for some commentary from them around the macro advertising environment

meta as well. You know, after Snap, I think we very quickly turn our attention to Meta and wonder if the things that hurt Snap, which weren't just to pullback and advertising, but the iOS add tracking changes from Apple that really hurt them. You'd imagine that's analogist for Meta as well. And then we finished strong, and we finished strong October twenty seven with Amazon and Apple. You know those are our favorites, Yeah, favorites. Indeed. You know, obviously

we were talking earlier about the big ad slowdown. Um, let's talk about that as it pertains to Google Meta. Our guest earlier seemed to be pretty confident in Google and metas results, much more concerned about names like Twitter, Pinterest, and Snap as we saw what are you looking for? I think what's interesting in Google's case, And he talked about this right in terms of searches that we learned earlier in the year, as we kind of came out

of the pandemic. Um even in the changing economy, Google still attracts eyeballs because consumers, even if nets they're spending less, they change their spending habits, they start searching for experiences. Travel plays a big part in that. Even so, they're not immune right to to what we're seeing. The stronger dollar is also really in resting. You know, you and I have talked about that less over the last couple

of years. But if you think about the names we're talking about, these are big global technology companies, and in fact, when you consider the S and P five hundred, it is the technology sector and the communications sectors most exposed. Why they do business all around the world. They are bringing in international revenues that are are going to get hit by that stronger dollars. So it's certainly something will play attention to. And I know and you are, you know,

you're an eternal optimist. Give us some give us some hope. What are the what are the signs of light the silver linings. Yeah, there are some people out there who think the end of the world is inevitable. Not naming any names, but there is a view in the market that the tech sector could hold up better in this third quarter. Right, you think about these names, they're global players within trench market positions, strong balance sheets, they can

weather the storm. Apple, Amazon, they are able to be nimble because of their size. Whether they pull that off or not, it's yet to be seen. But City Green, for example, overweight global technology right now. They're optimistic that in the long run, some parts of tech can weather the storm. So we'll see if that happens. All right, Bloomberg's ad Ludlow, thanks so much. I know you'll be across it all next week, and that doesn't For this

edition of Bloomberg Technology. On Monday, we're talking about Meta's new advertising strategy with Brad ericson of RBC Capital Markets. Of course, we'll dive into the broader trends we're seeing in the social media add turmoil as well, given what we were talking about when it comes to Snap, Twitter, Google and more. And don't forget to check out our podcast wherever you get your podcast. I'm Emily Changing in San Francisco. Have a wonderful weekend everyone, This is Bloomberg