FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND JAN, THIS IS BLOOMBERG TECHNOLOGY, WITH CAROLINE HYDE AND ED LUDLOW. ED: LIVE FROM BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK, THIS IS BLOOMBERG TECHNOLOGY. COMING UP, APPLE'S AI DELAY. PLUS, FROM CRYPTO CRITIC TO BITCOIN BACK UP. JUMP VALVES CHANGES AT THE SEC AND, IF REELECTED, TO MAKE IT GOING GREAT AGAIN. AND DEADPOOL'S DOMINATION. THE MOVIE SHATTERS BOX OFFICE RECORDS. TAKE A LOOK AT THE NASDAQ 100. WE ARE UP MEANINGFULLY IN THE SESSION, BUT WE ARE COMING OFF THE BACK OF THREE STRAIGHT WEEKS OF WEEKLY DECLINES. WE WERE TALKING OVER THE

WEEKEND ABOUT THE NASDAQ 100.
BEING IN CORRECTION TERRITORY. WE HAVE $10 TRILLION OR SO OF
MARKET CAP REPORTED ACROSS MICROSOFT, META, AND AMAZON.
APPLE IS A NAME WE ARE WATCHING REALLY CLOSELY.
IT KIND OF OPENED LOWER AND HAS BEEN TRADING CHOPPY, AND NOW IT
IS MODESTLY LOWER, BASICALLY FLAT. A BLOOMBERG INCLUSIVE, APPLE'S
AI FEATURES HAVE BEEN DELAYED AND WILL MISS THE INITIAL
RELEASE OF IOS 18 IN SEPTEMBER. THE COMPANY PLANS TO RELEASE
APPLE INTELLIGENCE BY OCTOBER BUT WILL MAKE IT AVAILABLE TO
SOFTWARE DEVELOPERS FOR EARLY TESTING AS SOON AS THIS WEEK,
AN ATYPICAL STRATEGY FOR THE TECH GIANT.
I WANT TO WELCOME BACK BLOOMBERG'S MARK GURMAN.
THE DETAIL IS IMPORTANT. MARK:

THANK YOU FOR HAVING ME.
GREAT TO BE BACK. APPLE INTELLIGENCE.
THIS IS APPLE'S BIG INITIATIVE FOR THE UPCOMING YEAR, SHOWING
THE MARKET, CONSUMERS THAT IT, TOO, HAS GENERATIVE ARTIFICIAL
INTELLIGENCE FEATURES. THEY ANNOUNCED THIS IN JUNE.
THE INTENTION WAS TO BRING IT TO MARKET WITH IOS 18 AND IPAD
OS 18, WHICH WILL LAUNCH SOMETIME IN SEPTEMBER, BUT NOW
I AM TOLD IT WAS PUSHED BACK TO 18.1.
THIS IS NOT A BIG DELAY BUT IT MEANS IT LIKELY WILL NOT COME
BE INSTALLED IN THE IPHONE 16 WHEN THOSE ARE SOLD.
SO IT IS A FEW WEEK DELAY. IT IS NOT A HUGE DEAL, BUT IT
SHOWS THE COMPANY IS STILL RACING TO IRON THINGS OUT AND
FIX BUGS BEFORE THIS PUBLIC

LAUNCH. ED:
I WILL GET TO THE STOCK STORY WITH MY NEXT GUEST, BUT IT IS
WORTH RECOUNTING THE BASICS. I'VE IPHONE 15 PRO, WHICH I
THINK WILL QUALIFY NEED TO BE ABLE TO GET APPLE INTELLIGENCE,
BUT JUST EXPLAIN THE ROLLOUT PROBABLY ACROSS WHAT TYPE OF
DEVICE YOU NEED TO HAVE AND WHAT IT IS GOING TO DO. MARK:
APPLE INTELLIGENCE REQUIRES DEVICES. IF YOU ARE ON THE MAC
WITH APPLE SILICON, OR ON IPHONE OR ARE OR IPAD WITH
8 GIGS OR MORE. THE IPHONE IS WHERE THINGS GET
INTERESTING. TODAY, THERE'S ONLY TWO IPHONE
MODELS THAT WILL SUPPORT APPLE INTELLIGENCE, THE IPHONE 15 PRO
AND THE IPHONE 15 PRO MAX. THOSE ARE THE ONLY TWO IPHONES
ON SALE NOW THAT INCLUDES EIGHT

GIGABYTES OF RAM.
THAT IS INTERESTING BECAUSE THERE WILL SOON BE FOUR MORE
MODELS THAT HAVE EIGHT GIGABYTES OF RAM, THE
IPHONE 16. READY SOON, A BUNCH MORE
IPHONES WILL INCLUDE APPLE INTELLIGENCE.
THAT IS PROBABLY GOING TO SPUR PEOPLE TO UPGRADE THEIR IPHONE,
GIVEN IT WILL NOT COME TO OLDER MODELS FOR THE APPLE
INTELLIGENCE INCLUDE A BUNCH OF AI FEATURES.
IT IS A CATCH-ALL TERM FOR A LOT OF AI FEATURES COMING TO APPLE
DEVICES P THAT INCLUDES BEING ABLE TO CREATE IMAGES,
INTEGRATE WITH CHATGPT, A NEW VERSION OF SIRI, THE ABILITY TO
HAVE WRITING TOOLS, SO YOU CAN WRITE SOMETHING IN AN EMAIL,
AND IT WILL BE ABLE TO

SUMMARIZE IT FOR YOU, SHORTEN IT, MAKE IT MORE CONVERSATIONAL, BE ABLE TO SUMMARIZE INCOMING TEXT SEARCHES, TRANSCRIBE A VOICE MEMO OR PHONE CALL, THEN CREATE A SUMMARY FOR YOU. SO A BUNCH OF DIFFERENT AI FEATURES ACROSS THE BOARD. THESE ARE NOT ANYTHING EXTRAORDINARILY INNOVATIVE OR BRAND-NEW. NOT A LOT WE HAVE NOT SEEN FROM OTHER PLATFORMS BEFORE. BUT THE DEEP INTEGRATION AND THE EASE-OF-USE AND THE INTERFACE YOU WILL SEE ON APPLE DEVICES REALLY TAKES IT UP A NOTCH AGAINST RIVALS. ED: APPLE REPORTS FISCAL THIRD QUARTER EARNINGS THURSDAY AFTER THE MARKET CLOSE. I HEARD A RUMOR THAT YOU AND I WILL BE TEAMING UP ON THE TOP LIVE BLOG CARE THAT MIGHT BE NEWS FOR YOU.

GIVE ME WHAT TO WATCH. MARK: THIS IS AN INTERESTING ONE, BECAUSE YOU WILL WANT TO PAY ATTENTION TO THE GUIDANCE THAT APPLE'S CFO AND TIM COOK LIVE ON THE CALL. THEY WILL NOT GIVE NUMBERS BUT WILL IMPLY, PROBABLY, HOW THE IPHONE WILL DO. THAT WILL BE THE MOST IMPORTANT PART THERE, BECAUSE THERE IS NOT A LOT OF NEW HARDWARE LAUNCHED DURING THE QUARTER THAT WE CARED ABOUT, OTHER THAN THE NEW IPADS, SO ALL EYES WILL BE ON THAT FORWARD-LOOKING COMMENTARY. ED: BLOOMBERG'S MARK GURMAN, INCREDIBLE TO HAVE YOU BACK HERE ON BLOOMBERG TECHNOLOGY. LET'S BRING IN MAXIM GROUP MANAGING DIRECTOR TOM FORTE. WHAT WE DID NOT NECESSARILY TALK ABOUT IN THE REPORTING WAS

WHY IT WAS IMPORTANT. A LOT OF
THE RUN-UP IN THE STOCK IS OPTIMISM. THIS IS COMING, A
REAL, TANGIBLE EFFORT ON ARTIFICIAL INTELLIGENCE.
SO YOUR RESPONSE TO THAT REPORTING?
IT IS A MATTER OF WEEKS IN THE ROLLOUT OF APPLE INTELLIGENCE,
BUT IT SEEMS SIGNIFICANT. TOM: WHEN I THINK ABOUT MY HOLD
RATING ON APPLE, THE QUESTION BECOMES HOW MUCH ARE INVESTORS
POTENTIALLY AHEAD OF THEMSELVES WHEN THINKING ABOUT THE UPGRADE
CYCLE FOR AI? I CERTAINLY THINK THERE WILL BE
AN UPGRADE CYCLE FOR AI. IN OUR NUMBERS, WE ARE LOOKING
FOR ESSENTIALLY HALF THE LIFT THEY GOT FROM 5G.
THE REASON WE ARE THINKING HALF THE LIFT IS A HAVE PRESSURE
FROM A REGULATORY STANDPOINT IN

EUROPE, WHICH IS ABOUT 25% OF
THEIR SALES, AND CHINA, ABOUT 20% OF THEIR SALES.
NOW WE ARE SEEING THEY WILL HAVE A SLOWER ROLLOUT OF APPLE
INTELLIGENCE. CLEARLY, THERE WILL BE AN
UPGRADE CYCLE. I JUST DO NOT PICK IT WILL BE AS SIGNIFICANT
AS WHAT IS ALREADY PERFECTED IN THE SHARES. ED:
ONE OF THE THINGS WE HAVE BEEN THINKING ABOUT IS, BASICALLY,
FOR EVERY DOLLAR PUT IN AI, HOW MANY DOLLARS ARE COMING UP FOR
EACH OF THESE COMPANIES? FOR THE CLOUD PLAYERS, IT IS A
BIT MORE EASY TO DO THE MATH. AI IS A STRUCTURE INVESTMENT,
TOPLINE GROWTH. IN APPLE'S CASE, IT SEEMS LIKE
APPLE INTELLIGENCE, THAT THEY HOPE IT SPURS UPGRADE CYCLES,
BECAUSE YOU NEED THE HARDWARE.

THAT IS COMPATIBLE WITH IT, AS MARK OUTLINED. CARED WHAT IS YOUR MODEL FOR HOW A DOLLAR IN TRANSLATES TO HOWEVER MANY DOLLARS OUT FOR APPLE? TOM: THIS IS A GOOD EXAMPLE WHERE ARTIFICIAL INTELLIGENCE CAN RESULT IN SALES. PER THE CHALLENGE IN ENTERPRISE SOFTWARE IS HEAVY. LEVEL OF INVESTMENT SPEND FOR ARTIFICIAL INTELLIGENCE AND NOT A NEAR-TERM 12 TO 18 MONTH IMPACT. THE SIZABLE -- IF YOU LOOK AT THE REVENUE THEY GENERATE FROM IPHONE, WHICH IS ABOUT HALF THEIR SALES, ON 5G, THE ADDED $50 BILLION A YEAR IN ANNUAL REVENUE ON THE 5G UP GREAT CYCLE. TO THE EXTENT AI SPUR SOMETHING SIMILAR, YOU CAN LOOK AT AN INCREMENTAL $50 BILLION REVENUE FOR APPLE.

TRANSLATING IT, YOU'RE LOOKING
AT MID TO HIGH SINGLE-DIGIT EPS GROWTH. ED:
WE ARE TALKING WITH TOM FORTE FROM MAXIM GROUP.
MARK SET OUT WHAT WE SHOULD BE LOOKING FOR.
A LESSON LEARNED IN RECENT ORDERS AS MAY BE DON'T PUT TOO
MUCH EMPHASIS ON THE THIRD PARTY DATA, PARTICULARLY CHINA,
BECAUSE THE THIRD-PARTY DATA TELLS US THE IPHONE IS SLIPPING
IN CHINA TO DOMESTIC HANDSET MAKERS.
YET, THE LAST EARNINGS, ON THE CALL IN PARTICULAR, THEY SAY WE
THINK WE HAVE GROWTH BACK THERE. THOSE SLIGHTLY IN CONGRESS,
COMPETING DATA POINTS. WITH THAT CONTEXT IN MIND, WHAT
ARE YOU BRACING FOR? TOM: I AM GOING TO TRY TO REVERSE
ENGINEER ESSENTIALLY WHAT THE OUTLOOK IS FOR IPHONE SALES IN
THE SEPTEMBER QUARTER.

THE EXPECTATION IS THEY WILL
HAVE A NEW IPHONE 16 THAT WILL COME OUT IN THE SEPTEMBER
QUARTER. YES, SOFTWARE WILL LAG INTO THE
DECEMBER ORDER, BUT TO THE EXTENT THAT IS THE COMMENTARY I
AM LOOKING FOR, AND IF YOU LOOK AT THE JUNE QUARTER, THE SAME
EXERCISE SUGGESTS IPHONE SALES WOULD BE NEGATIVE IN THE JUNE
QUARTER. DID WE SEE A TRANSITION FROM
NEGATIVE TO POSITIVE ON THE UPGRADE CYCLE FOR AI? ED:
WHERE IS THE BIGGEST SURPRISE GOING TO BE IN THE APPLE PRINT?
TOM: THE BIGGEST SURPRISE IS GOING
TO BE, I THINK, THAT THE INCREMENTAL LIFT TO IPHONE
SALES FROM AI WILL NOT BE AS SIGNIFICANT AS CURRENTLY
REFLECTED IN THE STOCK. STOCK'S TRADING AT NORTH 30
TIMES PE.

THE BIG TECH PEERS ARE MORE AT
27.5. I THINK INVESTORS ARE EXCITED
TOO MUCH OF A BOOST FOR APPLE FROM AI. ED:
A STORE WE HAVE DONE LESS IS ECOSYSTEM.
YOU ARE A DEVICE USER, BUT YOU NOW USE SERVICES.
YOU THINK APPLE MOVES BACK TO THAT STORY WITH AI? TOM:
THAT IS A GREAT STORY FOR AI. TO THE EXTENT THAT INCREMENTAL
-- TO THE EXTENT INCREMENTAL IPHONE SALES RESULT IN
INCREMENTAL SALES, THAT COULD PERHAPS GET THE COMPANY TO
SUPPORT IT. SO TO THE EXTENT THEY CAN
LEVERAGE AI TO GET CONSUMERS MORE EXCITED BY THE ECOSYSTEM AND
TO ADVANCE THEIR PURCHASES ON HIGHER-MARGIN SERVICES, THAT
COULD BE WONDERFUL FOR THE STOCK. ED: TOM FORTE, MAXIM GROUP MANAGING
DIRECTOR, GREAT TO HAVE YOU

BACK ON THE PROGRAM.
COMING UP ON BLOOMBERG TECHNOLOGY,
IT IS A BIG WEEK FOR TECH EARNINGS.
WE GET THE OUTLOOK WITH RBC CAPITAL MARKETS' BRAD ERICKSON.
ONE NAME WE HAVE NOT YET MENTIONED BUT IS BIG IN THIS
MARKET IS TESLA, UP 4.8%. THERE IS AN INTERESTING NOTE
FROM MORGAN STANLEY AND ADAM JONAS, BASICALLY SAYING TESLA IS OUR TOP AUTOMOTIVE BUSINESS,
GOOD OLD-SCHOOL MANUFACTURING AND SELLING ELECTRIC VEHICLES,
BUT, OF COURSE, ELON MUSK'S VISION FOR THE COMPANY IS ABOUT
ARTIFICIAL INTELLIGENCE. AT 4.8% GAIN, IT IS SUBSTANTIVE.
THIS IS BLOOMBERG TECHNOLOGY. ED:
IT IS A BIG WEEK FOR BIG TECH.

WITH FOUR OF THE MAGNIFICENT SEVEN MEGA CAPS POSTING QUARTERLY EARNINGS,
YOU MIGHT THINK ATTENTION IS IN PARIS WITH THE OLYMPICS, BUT
IN THE WORLD OF TECHNOLOGY, YOU ARE GLUED TO BLOOMBERG
TECHNOLOGY RIGHT TO THE COURSE OF THE WEEK.
IT IS NOT JUST THE MEGA CAPS, SOME OF THE CHIP NAMES AS WELL.
LET'S GET THE OUTLOOK WITH BRAD ERICKSON, CAPITAL MARKETS
RESEARCH ANALYST AT RBC. IN ORDER TO LOOK FORWARD, I
LOOK BACK LAST WEEK AT ALPHABET AND THE QUESTIONS INVESTORS
POSED. WE ALREADY TALKED ABOUT IT, BUT
FOR EVERY QUESTION -- EVERY DOLLAR YOU PUT INTO AI
INFRASTRUCTURE INVESTMENT, HOW MANY DOLLARS ARE YOU GETTING
OUT IN THE NEAR TERM.

IS THAT HOW YOU WOULD APPROACH THIS WEEK? BRAD: YEAH, I THINK THAT WILL BE A KEY TOPIC. WE ARE NOT GOING TO GET A TON OUT OF META OR AMAZON IN TERMS OF WHAT THEY ARE SPENDING THIS YEAR. PEOPLE ALREADY GENERALLY UNDERSTAND THAT. WE WILL BE LOOKING AT THE MARGINAL DOLLARS, LIKE YOU SAID. WHAT IS INTERESTING IS, A QUARTER OR TWO AGO, PEOPLE WERE VERY FOCUSED ON SPECIFICALLY WHAT AI WAS DRIVING, BUT WHAT WE ARE LEARNING MORE AND MORE IS AI IS REALLY INTEGRATING INTO THESE MODELS, SO YOU CANNOT UNPACK IT. WHICH IS OK, BECAUSE THEN WE CAN EVALUATE THE DOLLAR GROWTH IN THESE COMPANIES AND ORDERS JUSTIFYING THOSE INVESTMENTS. ED: THERE ARE THINGS ARE SORT OF

IDIOSYNCRATIC. META'S CASE. WE KINDA FORGET IT.
IS A MASSIVE PORTFOLIO. SOCIAL MEDIA COMPANIES. BUT THEY. LAST
QUARTER. TOLD US ABOUT THEIR PLANS FOR INFRASTRUCTURE.
EACH WINS OUT. THE FORWARD-LOOKING AI STORY OR THE
BACKWARD-LOOKING HISTORY OF THAT COMPANY? BRAD:
I THINK PEOPLE ARE DEFINITELY GOING TO BE LOOKING FORWARD.
THE STORY WILL BE THE SAME. WE WILL LOOK AT THE REVENUE
TRENDS AND EVALUATE WHAT THEY ARE SAYING ABOUT THE AD MARKET
AND THEIR PRODUCT IN PARTICULAR. THEN THE FOCUS ON
THE CALL IS GOING TO SHIFT TO MARK TALKING ABOUT HIS VISION
FOR AI AND TRYING TO GIVE PEOPLE SOME COMFORT. I THINK
THIS QUARTER. IN WHY THEY'RE MAKING SUCH BIG INVESTMENTS
WHERE MAYBE WE WILL SEE A

LITTLE BIT OF -- CALL IT DELAYED GRATIFICATION IN TERMS OF WHEN THOSE INVESTMENTS PAY OFF. HE USED THE WORDS WE ARE IN A MULTIYEAR INVESTMENT CYCLE. THAT IS A SCARY TERM FOR PEOPLE, SO WE WILL SEE WHAT PERFORMANCE HE PUTS UP LATER THIS WEEK. ED: THIS IS A WEEK WHERE BE A CEO OR CFO, YOU KIND OF HAVE TO EARN THAT PAY PACKET. DO YOU KNOW WHAT I MEAN? IT COMES DOWN TO COMMUNICATION AT THE END. HOW MUCH FAITH OR CREDENCE DO YOU PUT IN THE WORDS SPOKEN BY THE PEOPLE AT THE TOP? BRAD: YEAH, YOU KNOW, I THINK THEY ARE LITTLE BIT DIFFERENT CASES. WE COVER META AND AMAZON, SO I WILL STICK WITH MY COMMENTARY THERE. IN TERMS OF MARK ZUCKERBERG AND META, ONE OF THE ADAGES WE HAVE

HEARD LATELY IS YOU WANT TO BUY
MARK WHEN HE IS FEELING MORE CONFIDENT AND SELL WHEN HE IS
FEELING -- SORRY, BUY HIM WHEN HE IS FEELING A LITTLE LESS
CONFIDENT, SELL WHEN HE IS FEELING A LITTLE MORE
CONFIDENCE. PAY LAST QUARTER, THEY ARE DELIVERING SUCH
HIGH-GROWTH -- THEY WERE 27% GROWTH LAST QUARTER, 22% THIS
QUARTER -- I THINK THAT FELT A LITTLE TOUGH, AND OBVIOUSLY,
THE STOCK SOLD OFF. HISTORICALLY, YOU HAVE SEEN
THAT FLIPPED THE OTHER SIDE. WE WILL SEE WHAT KIND OF TONE
WE GET OUT OF HIM HERE, BUT IF HE IS BASICALLY TALKING TO MORE
MODERATING GROWTH RATES AND FEELING A LITTLE BIT BETTER
ABOUT THOSE INVESTMENTS, THAT

COULD BE A GOOD SIGN.
AMAZON'S MUCH SIMPLER. WE EXPECT THEM TO COME OUT WITH
A CONFIDENT TONE AROUND AI. THEY WILL NOT GET INTO THE GAME
OF PROMOTING THEMSELVES OR EVEN SPEAKING TO HOW MUCH AI IS
EXACT AND CONTRIBUTE IN, BUT I EXPECT THERE COMMENTARY TO
REMAIN BULLISH ON AI IN GENERAL. ED:
THAT IS AN INTERESTING POINT. WHAT THEY SAID LAST QUARTER IS,
FOR AWS, THE REVENUE RUN RATE WAS $100 BILLION K. BUT
SPECIFICALLY FOR AI, REVENUE RUN RATE IN THE WHAT I DOLLARS
K. THAT SEEMED LIKE AN OFF. IF YOU DO NOT EXPECT THEM TO
OVER EXAGGERATE OR EXPAND ON THAT, WHAT DO THEY NEED TO SAY
THIS QUARTER TO KEEP INVESTORS CONVINCED? BRAD:
YEAH, I THINK PREVIOUSLY THEY

HAD BEEN A LITTLE BIT BEHIND,
CERTAINLY EVEN ON JUST THE ACQUISITION OF GPU'S NECESSARY
TO TRAIN UP THEIR MODELS AND THEIR PLATFORM, SO I THINK
MAYBE GIVE THEM A LITTLE MORE COLOR ON PROGRESS, FORWARD
PROGRESS AND AGGRESSION THERE WILL BE SUPER HELPFUL.
THE OTHER THING IS ONE OF THE THINGS THEY EMPHASIZE IS WHEN
THEY SAY THINGS LIKE MULTIBILLION-DOLLAR RUN RATES
FOR AI, THEY ARE REALLY TALKING ABOUT BROADER AI, WHICH THEY
HAVE BEEN WORKING ON FOR YEARS, VERY MUCH PREDATING --
PRE-DATING THE ONSET OF GENERATIVE AI LAST YEAR.
IT IS A LITTLE HARD TO UNPACK, BUT THAT IS THE GENERAL
COMMENTARY. ED: BRAD ERICKSON, GREAT TO HAVE
YOU ON THE SHOW. COMING UP, FRANCE FACES AN
INTERNET DISRUPTION.

MORE ON THE LATEST IF RESEARCHER ATTACKED AS OF THE PARIS OLYMPICS GETS UNDERWAY -- LATEST INFRASTRUCTURE ATTACK AS THE PARIS OLYMPIC'S GETS UNDERWAY. ALSO, STRONG EARNINGS, SECOND QUARTER ADJUSTED EARNINGS BEAT ESTIMATES. IT IS A NAME WHERE THERE CHIPS ARE MORE RELATED TO THE AUTOMOTIVE INDUSTRY. THEY HAVE A WIDER USE CASE, NOT SO MUCH AI, BUT IT IS A NAME WE TRACK ON THIS PROGRAM. GOOD RESULTS. THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: TIME FOR TALKING TECH. SHARES OF ALIBABA RISING, THE STOCK HITTING ITS HIGHEST IN TWO MONTHS IN ASIA TRADING. INVESTORS CHEERING THE E-COMMERCE GIANT AND ITS PLANS TO CHARGE A HIGHER SERVICE FEE.

FOR MERCHANTS.
ALIBABA IS SET TO RAISE THEIR SOFTWARE SERVICE FEE TO 0.6%,
WHICH WILL BOOST ITS CORE MERCHANT REVENUE.
PLUS, XIAOMI PLANS FOR AN EV EXPANSION.
THEY PURCHASED A PLOT OF LAND IN BEIJING FOR 160 MILLION
DOLLARS IN AN EFFORT TO EXPAND ITS ELECTRIC CAR PRODUCTION.
XIAOMI FIRST ENTERED THE CAR MARKET IN MARCH AND ALREADY
DELIVERED MORE THAN 40,000 VEHICLE SO FAR, WITH THE
COMPANY ON TRACK TO DELIVER ITS INITIAL GOAL OF 100,000 CARS BY
NOVEMBER. ANOTHER INFERENCE AFTER ATTACK
ON FRANCE DURING THE -- ANOTHER INFRASTRUCTURE ATTACK ON FRANCE
DURING THE OLYMPICS. THE OLYMPIC TELECOM PARTNERS AS
CONNECTIONS INTO PARIS, AND

THUS, THE OLYMPICS WERE NOT DISRUPTED. FOR MORE, LET'S BRING IN BLOOMBERG'S REPORTER COME OUT IN PARIS. THIS IS A STORY WHERE THERE ARE MANY QUESTIONS, BUT WHAT IS THE LATEST? BENOIT: YEAH, SO CLEARLY IT WAS A LARGE-SCALE ATTACK ON THE FIBER NETWORKS OVERNIGHT, BETWEEN 1:00 A.M. AND 3:00 A.M. THERE WERE NINE PLACES, WE ARE TOLD, ACROSS FRANCE, WHERE LONG-DISTANCE FIBER-OPTIC CABLES WERE CUT. THIS IS THE HIGHWAY OF THE INTERNET, POWERING THE NETWORK, AND THANKS TO REDUNDANCIES, THERE WAS NO REAL IMPACT, JUST A BIT OF LATENCY FOR SOME CUSTOMERS. IT CLEARLY, THIS IS THE SCALE OF THE ATTACK THAT IS SORT OF

WORRYING AUTHORITIES IN FRANCE.
FOR THE TRAINS, THE TRAINS ARE BACK TO NORMAL AS OF TODAY.
IT HAS BEEN SLOWLY GOING BACK TO NORMAL OVER THE WEEKEND, SO
SO FAR, NO REAL DISRUPTION OF THE OLYMPICS.
IT HAS NOT BEEN DISRUPTING EITHER THE TRAIN OR THE
INTERNET -- NEITHER THE TRAIN OR THE INTERNET OUTAGE HAVE
BEEN AFFECTING THE OLYMPICS. BUT THE FACT THEY ARE TARGETED
ACROSS FRANCE RATHER THAN PARIS, THAT IS SORT OF
INTERESTING AND SURPRISING AUTHORITIES. ED:
THE OUTSTANDING QUESTION, I SUPPOSE, IS IS THERE A LINK
BETWEEN THE RAIL NODES THAT WERE THE VICTIM OF A TAX LAST
WEEK AND THE CUTTING OF FIBER-OPTIC CABLES OVERNIGHT?
IS THERE ANY EVIDENCE THAT IS

PART OF A WIDER AND COORDINATED
ATTACK? BENOIT: SO THERE IS NO EVIDENCE THAT WE
KNOW OF SO FAR. THERE ARE TWO SEPARATE
INVESTIGATIONS THAT HAVE BEEN STARTED BY THE PARIS
PROSECUTOR'S OFFICE. CLEARLY, WHAT IS SIMILAR IS
THERE IS A GOOD LEVEL OF INTELLIGENCE ON WHERE, EXACTLY,
TO ACT, ESPECIALLY ON THE TRAIN ATTACKS.
THESE WERE IMPORTANT NODES IN THE NETWORK.
BUT THERE IS NO PROOF OR INDICATION SO FAR OF WHO COULD
HAVE DONE THIS. THE INTERIOR MINISTER THIS
MORNING SAID THEY WERE ADVANCING ON THIS, BUT THERE IS
NO INFORMATION ON WHO COULD HAVE DONE IT AND IF THERE IS A
LINK BETWEEN THE TWO ATTACKS. ED:
AWAY FROM THE NEWS HEADLINES, IT WAS A WEEKEND WHERE EVERYONE
WATCHING THE PROGRAM WAS GLUED

TO THEIR TELEVISION FOR IT. I
REALLY ENJOYED THE RUGBY SEVENS -- CONGRATULATIONS TO FRANCE
FOR AN INCREDIBLE PERFORMANCE. PAY WHAT IS LIKE NOW IN FRANCE,
WHAT IS IT LIKE -- THE EXPERIENCE OF BEING IN THE HOST
CITY, THE HOST NATION? BENOIT: IT IS A GREAT ATMOSPHERE IN
PARIS. IT IS A LOT OF PEOPLE FROM
ACROSS FRANCE THAT ARE COMING TO SEE THE EVENTS, AND MANY
TOURISTS, OF COURSE. THE WEATHER IS MUCH BETTER
NOW, SO THAT IS GREAT. THEY HAVE CHOSEN TO PUT THE
EVENTS LOCATION IN THE MIDDLE OF THE CITY, AND IT TURNS OUT
TO BE GREAT. SO SO FAR, TRANSPORT IN PARIS IS FINE.
THERE WAS NO SECURITY INCIDENT, THANKFULLY, SO FAR. ED: BLOOMBERG TECHNOLOGY'S BENOIT
BERTHELOT, THANK YOU SO.

BLOOMBERG'S BENOIT BERTHELOT,
THANK YOU SO MUCH. COMING UP, WE WILL BE JOINED BY
KRISTIN SMITH OF THE BLOCKCHAIN ASSOCIATION.
THAT IS ALL COMING UP NEXT. THIS IS BLOOMBERG TECHNOLOGY.
♪ ED: WELCOME BACK TO BLOOMBERG
TECHNOLOGY. ED LUDLOW IN NEW YORK CITY.
A QUICK CHECK IN ON THE MARKETS. WE KNOW THE STORY THIS WEEK.
IT IS A STORY ABOUT FOUR OF THE BIGGEST TECHNOLOGY NAMES
REPORTING EARNINGS. THE NASDAQ 100 HAS FLATTENED THE
SESSION. THE TOP -- THE CONTEXT IT IT IS
COMING OF THREE WEEKS OF WEEKLY DECLINES.
A LOT OF TALK ABOUT HOW CLOSE WE ARE TO A TECHNICAL
CORRECTION. THERE IS A LOT AT STAKE,
DEPENDING HOW THOSE REPORTS GO.

IN THE MOMENT, ONE ASSET CLASS
THAT IS IN FOCUS IS CRYPTO. BITCOIN, BELOW $68,000 U.S.
DOLLARS PER TOKEN. OTHER NAMES, MINORS, HAD BEEN
INTERESTINGLY HI, NOW LOWER. BITCOIN TOUCHED THE HIGHEST
LEVEL SINCE MID JUNE AFTER DONALD TRUMP EXPANDED HIS
PRO-CRYPTO AGENDA AT BITCOIN 2024 OVER THE WEEKEND.
HERE HE IS SPEAKING AT THE CONFERENCE. MR. TRUMP:
THIS AFTERNOON, I'M LAYING OUT MY PLAN TO ENSURE THE UNITED
STATES BELIEVED BE THE CRYPTO CAPITAL OF THE PLANET AND THE
BITCOIN SUPERPOWER OF THE WORLD, AND WE WILL GET IT DONE.
ED: LET'S BREAK IT DOWN WITH BLOOMBERG INTELLIGENCE ANALYST
JAMES SEAVER WHO WAS AT THE

CONFERENCE. YOU ARE LOOKING FRESH AFTER WHAT I IMAGINE WAS LATE NIGHTS AND WILD AFTERNOONS IN NASHVILLE. WE WILL GET TO TRUMP. WHAT WAS IT LIKE, HOW WAS YOUR WEEKEND? JAMES: THERE WAS A LOT OF EXCITEMENT IN THE AIR. I HAVE BEEN TO THE CONFERENCE THE LAST FEW YEARS. I WILL SAY THIS FEELS -- IT MAKES SENSE. WE HAVE THE BITCOIN ETF'S THAT LAUNCHED IN JANUARY. THERE ARE BIG BANKS AND BIG INSTITUTIONAL PLAYERS BUT IF THEY ARE NOT INVOLVED IN BUT COME THAT ARE INTERESTED. I INTERVIEWED ROBBIE NICHE MAKE FROM BLACKROCK. STATE STREET WAS THERE, FIDELITY WAS THERE, YOU NAME IT. THERE IS A LOT OF INSTITUTIONAL BIG TIME PLAYERS THAT ARE NOW DIPPING THEIR TOE OR NOT FULLY JUMPED INTO THE WATER ON THE

BITCOIN SIDE.
I WILL SAY IT HAS BECOME MORE MATURE.
IT WAS A LOT OF EXCITEMENT, AND A LOT OF FUN, AND PEOPLE WERE
AMPED UP TO HAVE TRUMP. THERE WERE OVER 10 OTHER CONGRESSMEN
AND WOMEN AT THE CONFERENCE. IT WAS ALMOST POLITICAL IN A
WAY TOO. ED: THE HEADLINE IS THAT TRUMP HAS
PROMISED TO MAKE BITCOIN GREAT AGAIN, WHICH IS GOOD FOR
HEADLINES. AS SOUNDBITES GO. BUT ALSO TALKED ABOUT SEC CHAIR
GARY GENSLER SAYING HE WOULD REPLACE HIM IF HE IS REELECTED,
WITH SOMEBODY THAT LOVES CRYPTO. HOW DID THAT GO DOWN WITH THE
INDUSTRY, INVESTORS, THE COMMUNITY AROUND BITCOIN? JAMES:
HE GAVE A REALLY LONG RAMBLING SPEECH, AS TRUMP OFTEN DOES.
THE ONE THING THAT GOT THE

CROWD. THE LOUDEST, BY FAR, WAS
HIM SAYING, ON DAY ONE, I WILL FIRE GARY GENSLER.
I'M PRETTY SURE HE DOES NOT TECHNICALLY HAVE THE ABILITY TO
DO THAT. THAT IS STANDARD WHEN A NEW
PRESIDENT COMES IN; THEY TRY TO TURN IT OVER AND GET THE PEOPLE
THEY WANT AT THE HEADS OF AGENCIES.
IT IS A TALKING POINT AND SOMETHING PEOPLE WANT.
HE TALKED ABOUT STOPPING ELIZABETH WARREN AND HER
GOONS. A BUNCH OF OTHER THINGS OUT
THERE THEY WANTED TO HEAR. ACTIONS SPEAK LOUDER THAN WORDS.
THEY DEFINITELY LIKED IT. IT WAS CERTAINLY DIFFERENT FROM
HIS TYPICAL TRUMP SPEECH AUDIENCE. BUT HE HAD THE POINTS HE WANTED
TO HIT.

BIG WINNERS SEEM TO LOVE IT.
YEAH. ED: JAMES SEYFFART, BLOOMBERG
INTELLIGENCE. WHO WAS THERE AT BITCOIN 2024, THANK YOU.
THE U.S. ELECTION LOOMS. BLOOMBERG HAS A
BIG TAKE ON TRUMP'S OWN JOURNEY WITH CRYPTO, GOING FROM SKEPTIC
TO BITCOIN CHEERLEADER. I'M DELIGHTED TO BRING IN
KRISTIN SMITH, CEO OF THE BLOCKCHAIN ASSOCIATION, A
DC-BASED TRADE ASSOCIATION. YOU REPRESENT AROUND 100 OF THE
INDUSTRY'S LEADING COMPANIES, AND YOU ARE QUOTED IN THAT BIG
TAKE. FOR ME, THAT IS THE STORY. IT WAS NOT LONG AGO THAT FORMER
PRESIDENT TRUMP WAS TALKING ABOUT THE CRIMINALITY
ASSOCIATED WITH CRYPTO, AND

BLOCKCHAIN.
HIS DOUBTS ABOUT IT, TO NOW BEING ALL OUT.
HAS THAT CHANGED THE TIDE FOR YOUR INDUSTRY? KRISTIN:
NOBODY EVER GOES FROM BEING PRO CRYPTO TO ANTI-CRYPTO.
IT IS ONLY THE OTHER WAY AROUND. I THINK THAT IS WHAT WE SAW
WITH DONALD TRUMP. IT IS WE ARE SEEING WITH FOLKS
ON BOTH SIDES OF THE AISLE. WHO ARE IN CONGRESS TODAY AND
WHO ARE RUNNING FOR CONGRESS RIGHT NOW.
I THINK THE REASON FOR THAT IS THAT WHEN YOU DON'T KNOW A LOT
ABOUT CRYPTO, YOU OFTEN HAS -- YOU OFTEN HAVE MISCONCEPTIONS
ABOUT HOW IT WORKS. BUT AS YOU GAIN THAT KNOWLEDGE
AND YOU BEGIN TO UNDERSTAND THE POWER OF DECENTRALIZED
TECHNOLOGY, YOU REALIZE WHAT TENS OF MILLIONS OF AMERICANS
KNOW IS THAT THIS IS SOMETHING

THAT COULD BE THE FOUNDATION
FOR A NEW FINANCIAL SERVICES SYSTEM, OR AN ALTERNATIVE TO
THE BIG TECH ECOSYSTEM, IN A WAY THAT IS BETTER FOR USERS
AND CONSUMERS. THERE IS A REAL REASON PEOPLE
LIKE THIS. AND WHAT WE HAVE SEEN AS A
RESULT OF THIS IS THAT IT IS TRANSLATING INTO THE ELECTIONS.
THE CRYPTO VOTER IS REAL, AND THE CRYPTO ADVOCATE IS STRONG.
AND I THINK THIS IS SOMETHING WE WILL CONTINUE TO SEE TALKED
ABOUT HEADING INTO THE ELECTIONS. ED:
WE MENTIONED IT, BUT I WANTED TO PLAY THE SOUNDBITE.
THIS IS FORMER PRESIDENT TRUMP TALKING ABOUT THE SEC AND GARY
GENSLER. MR. TRUMP: ON DAY ONE, I WILL FIRE GARY
GENSLER. I WILL APPOINT A NEW SEC
CHAIRMAN WHO BELIEVES AMERICA

SHOULD BUILD THE FUTURE, NOT BLOCK THE FUTURE. I WILL IMMEDIATELY APPOINT A BITCOIN AND CRYPTO PRESIDENTIAL ADVISORY COUNCIL. ED: WHAT IS THE BLOCKCHAIN ASSOCIATION AND THE GROUPS YOU REPRESENT REACTION TO THAT STATEMENT? KRISTIN: I THINK PEOPLE ARE INCREDIBLY EXCITED BY THAT STATEMENT. WE HAVE HAD BOTH AT THE BLOCKCHAIN ASSOCIATION AND WITHIN OUR MEMBER COMPANIES, A LOT OF OUTRAGE OVER THE LAST COUPLE YEARS TO THE SEC, TO HAVE A REASONABLE CONVERSATION ABOUT HOW TO BRING REGULATION TO THE SPACE. AS A RESULT, GANSLER HAS COME BACK WITH ENFORCEMENT ACTION AFTER ENFORCEMENT ACTION AND IS CAUSING THE COSTING THE INDUSTRY LEGAL FEES TO DEAL WITH CHALLENGES FROM THE SEC.

RIGHT NOW.
THIS IS ABSOLUTELY RIDICULOUS. THIS IS NOT HOW THINGS SHOULD
BE DONE, AND PEOPLE ARE ANGRY. I THINK PEOPLE ARE VERY EXCITED
THAT TRUMP HAS COME OUT THIS STRONG.
I THINK IT IS INTERESTING IS WE ARE ALSO HEARING A LOT OF
CONVERSATIONS ON THE DEMOCRATIC SIDE OF THE AISLE.
WE HAVE 14 MEMBERS OF CONGRESS WHO WROTE A LETTER TO THE
D&C, URGING THEM TO INCLUDE SOMETHING PRO-CRYPTO IN THE
PLATFORM. THERE IS A LOT OF OUTREACH TO
THE NEW NOMINEE, PRESUMPTIVE NOMINEE, ON THE DEMOCRATIC
SIDE, HARRIS, TO SEE IF SHE CAN COME OUT AND DO SOMETHING PRO-
CRYPTO AS WELL. THIS IS NOT A PARTISAN ISSUE,
BUT I WOULD SAY TRUMP HAD A VERY STRONG SHOWING OVER THE
WEEKEND, AND PEOPLE WERE

INCREDIBLY ENCOURAGED BY THE
ACKNOWLEDGMENT OF THE DIFFICULT TIME WE HAVE HAD OVER THE PAST
THREE AND A HALF YEARS WITH GARY GENSLER. ED:
ON THE VICE PRESIDENT, THERE HAD BEEN REPORTS THAT SHE
CONSIDERED APPEARING OUT AND SPEAKING AT BITCOIN 2024, AND
THEN DID NOT DO SO. HAS THE BLOCKCHAIN ASSOCIATION
HAD ANY CONVERSATION OR ENGAGEMENT WITH HER CAMPAIGN
TEAM? AND WOULD YOU HOPE TO DO SO?
KRISTIN: WE ABSOLUTELY HOPE TO DO SO.
WE HAVE OUTREACH BOTH TO HER GOVERNMENT TEAM AND HER
CAMPAIGN TEAM RIGHT NOW. I KNOW SHE HAS HAD
CONVERSATIONS WITH SOME OF THE LEADERS WITHIN THE INDUSTRY
ALREADY. I THINK THERE IS A LOT OF HOPE.
I THINK WHAT IS INTERESTING IS

TYPICALLY, WHEN DONALD TRUMP
COMES OUT IN SUPPORT OF A POLICY, THE DEMOCRATIC PARTY
RUNS THE OTHER WAY. WHAT WE SEE HERE IS A
COMPETITION FOR WHICH PARTY CAN GAIN THAT VALUABLE CRYPTO VOTER.
THERE IS A PULL FROM A COUPLE MONTHS AGO. I THINK IT IS STILL
RELEVANT THAT ONE IN FIVE VOTERS IN SWING STATES
CONSIDERS CRYPTOCURRENCY AN IMPORTANT ISSUE HEADING INTO
THE ELECTION. BOTH SIDES ARE SEEING THOSE
NUMBERS, AND THAT THERE IS A REALIZATION THAT THERE IS NO
UPSIDE TO BEING ANTI-CRYPTO. THAT REALLY BOTH PARTIES NEED
TO BE THOUGHTFUL ABOUT HOW TO APPROACH THIS SO WE CAN GET
THE RIGHT POLICY IN PLACE SO THAT THOSE VOTERS WILL GO TO
THE POLLS BUT MORE IMPORTANTLY

THAT WE WILL BE ABLE TO KEEP
THE INDUSTRY AND THE COMMUNITY THRIVING IN THE UNITED STATES.
ED: KRISTIN SMITH, CEO OF THE BLOCKCHAIN ASSOCIATION, THANK
YOU. THE U.S. JUSTICE DEPARTMENT SAYS TIKTOK
COLLECTED USER'S INFORMATION ON SENSITIVE TOPICS, MAKING IT A
NATIONAL SECURITY THREAT. JUSTIFIES A LAW TO BAN THE APP
IN THE U.S., IF BYTEDANCE DOES NOT DIVEST. LET'S START BY
ASKING WHAT IS NEW HERE AND WHAT IS THE LATEST? MIKE:
THERE ARE A KEY THREE POINTS THAT EMERGE IN THIS JUSTICE
DEPARTMENT FILING CARE THAT WAS THE FIRST DETAILED RESPONSE TO
TIKTOK'S EFFORT TO OVERTURN THIS LAW THAT WAS PASSED IN
APRIL AND SIGNED BY PRESIDENT JOE BIDEN.
IT REQUIRES THE COMPANY TO BE

SOLD BY ITS CHINESE OWNERS BY
JANUARY 19. THE GOVERNMENT HAS BEEN ON THE
HOOK TO DEMONSTRATE FURTHER IN COURT WHY THAT IS NECESSARY.
THERE ARE THREE KEY POINTS THAT EMERGED.
ONE, YOU HAD AT THE TOP, DATA COLLECTION.
THE COMPANY COLLECTS A LOT OF DATA ON ITS 170 MILLION USERS.
THAT INCLUDE PRIVATE MESSAGES, VIEWING HABITS, EVEN USERS'
LOCATION. THAT IS INFORMATION THAT IS NOT
ADEQUATELY WALLED OFF FROM CHINA AND FROM CHINA'S
GOVERNMENT. TWO, WE ALSO SEE THE GOVERNMENT
RAISING THE FLAG OF CENSORSHIP. IT SAYS THAT CHINA COULD STEP
INTO EXERT CONTROL OVER CONTENT ON THE PLATFORM.
EITHER CENSORING OR PROMOTING DIFFERENT KINDS OF CONTENT THAT
COULD SUIT ITS GOVERNMENT'S

INTERESTS.
THREE, WE SAW THE GOVERNMENT TAKE ON THE WHOLE QUESTION OF
FREE SPEECH RIGHTS. THAT TIKTOK HAS BEEN RAISING AS IT
CHALLENGES THIS LAW. WE ARE SEEING THAT TIKTOK IS
SAYING THIS IS UNFAIR. THE U.S. GOVERNMENT RESPONDED, SAYING,
LOOK, FREE SPEECH RIGHTS DO NOT APPLY WHEN THE ALGORITHM AND
DATA ARE BEING COLLECTED AND OWNED BY A FOREIGN POWER.
THAT IS REALLY ONE OF THE KEY ISSUES AT HAND. ED: WE WILL SHOW THE TIKTOK
RESPONSE. BUT VERY QUICKLY, SUMMARIZE IT
FOR US. MIKE: IN BRIEF, THEY ARE DOUBLING
DOWN ON THEIR RESPONSE THAT THIS LAW VIOLATES FREE SPEECH
RIGHTS, AND IT INSISTS THE GOVERNMENT HAS YET TO SHOW
ADEQUATE EVIDENCE OF THIS.

NATIONAL SECURITY THREAT THAT
LAWMAKERS TALKED ABOUT, BUT THE JUSTICE DEPARTMENT TALKED ABOUT
IN THEIR BRIEFING FILED ON FRIDAY.
AND TO BE FAIR TO TIKTOK'S POINT, SO MUCH OF THAT FILING
FROM LATE FRIDAY WAS REDACTED. ONLY THE JUDGE IN THE CASE WILL
SEE THOSE ARGUMENTS MADE ON NATIONAL SECURITY GROUNDS,
BECAUSE THAT INFORMATION REMAINS CLASSIFIED. ED:
MIKE SHEPPARD, THANK YOU. COMING UP, THE R-RATED OPENING
WEEKEND RECORD HAS BEEN SMASHED BY DEADPOOL AND WOLVERINE.
DETAILS ON DISNEY'S BOX OFFICE DOMINATION IS NEXT.
THIS IS BLOOMBERG TECHNOLOGY. IT IS GOING VIRAL.
DOUG WILL HAS DOMINATED THE WEEKEND BOX OFFICE, BRINGING IN
$205 MILLION, MAKING THE BEST

EVER OPENING FOR AN R-RATED FILM. HANNAH MILLER JOINS ME ON SET. WHAT IS SO ASTONISHING IS THAT IS JUST THE U.S. AND CANADA. A GLOBAL HIT, BUT THE NUMBERS ARE AHEAD OF FORECASTS HERE. GIVE ME THE SIZE AND SCOPE AGAINST EVERYTHING ELSE I COULD HAVE WATCHED. HANNAH: IT IS SMASHING RECORDS GLOBALLY FOR R-RATED MOVIES. PEOPLE ARE FLOCKING TO THIS FILM. THERE WERE HIGH EXPECTATIONS FROM THE GET-GO. IT HAS EXCEEDED THOSE EXPECTATIONS IN TERMS OF BOX OFFICE PERFORMANCE. THIS IS HUGE FOR THE FILM INDUSTRY AND STRUGGLING MOVIE THEATER CHAINS. ED: I HAVE NOT SEEN IT. HANNAH: NOT YET. ED: SENIOR PRODUCER JACKIE LOPEZ SAYS THE SOUNDTRACK IS FIRE.

THAT'S INTERESTING.
DEADPOOL WON. GREAT. DEADPOOL TWO MET.
BUT FOR BUSINESS -- BUT FOR DISNEY, THIS IS IMPORTANT.
HANNAH: I THINK SO TOO. WE SAW A HUGE INFLUX OF MARVEL
FILMS THAT UNDERPERFORMED. THEY TOOK A LITTLE BREAK. THIS
ONE CAME OUT. IT IS PUTTING MARVEL AND DISNEY
BACK ON TOP AGAIN WHEN IT COMES TO BOX OFFICE PERFORMANCE. ED:
WHAT ELSE WAS IT UP AGAINST? THAT IS THE BIG QUESTION.
YOU HAVE SOMETHING LIKE TWISTER. IT HAD ALREADY BEEN
OUT. HANNAH: WITH TWISTERS, WE THINK IT WILL
TAKE AWAY AUDIENCES FROM TWISTERS, ESPECIALLY FOR IMAX
SHOWINGS. THAT HAS BEEN A HUGE DRAW FOR
TWISTERS. THERE WILL BE IMAX SHOWINGS FOR
DEADPOOL AND WOLVERINE.

WE THINK THIS WILL CONTINUE TO DOMINATE. INSIDE OUT TWO, WE SAW THAT DROP. THIS IS THE FILM EVERYBODY WANTS TO SEE RIGHT NOW. ED: HANNAH MILLER IN NEW YORK ON THAT NEW ENTERTAINMENT BEAT, WHAT A GREAT GIG. ANOTHER BIG STORY, GOOGLE STREAMING MUSIC PLAYER HAS LAGGED BEHIND SPOTIFY, APPLE AND AMAZON IN U.S. MARKET SHARE. THINGS ARE CHANGING FOR YOUTUBE MUSIC. AUSTIN CAR HAS A FEW THOUGHTS ON THAT IN TODAY'S TECH DAILY, BREAKING HEADLINE NEWS OF WHICH IS YOU SPEND $1200 A YEAR ON GOOGLE SUBSCRIPTIONS WHICH IS WILD. BUT AGAIN, YOUTUBE MUSIC IS NOT ONE I USE EITHER. WHAT HAVE YOU FOUND OUT? AUSTIN: IT'S INTERESTING, I FOUND OUT

THAT I HAVE BEEN PAYING FOR
YOUTUBE MUSIC THIS WHOLE TIME, INCLUDED IN MY YOUTUBE PREMIUM
SUBSCRIPTION. LIKE YOU, I HAVE NEVER THOUGHT
OF YOUTUBE AS A MUSIC SERVICE. I SUBSCRIBE TO SPOTIFY. A LOT
OF MY FRIENDS USE APPLE MUSIC OR AMAZON SERVICES INCLUDED IN
PRIME. WHAT I FOUND IS THEY PUT TOGETHER THIS UNIQUE SERVICE
THAT IS DIFFERENTIATED BY VIDEO. YOU GET ACCESS TO MUSIC VIDEOS,
LIVE CONCERTS, PODCAST MATERIAL THAT REGULAR PEOPLE UPLOAD TO
THE VIDEO WEBSITE, AND THAT INFLUENCES YOUR MUSIC ALGORITHM
AND SONG RECOMMENDATIONS YOU GET. ALPHABET LAST WEEK WAS SAYING
HOW MUCH SUBSCRIPTION GROWTH THEY ARE SEEING.
THAT IS ONE OF THE DRIVERS THEY ARE SEEING, FROM MUSIC.
THIS YEAR, THEY SURPASSED

HUNDRED MILLION SUBSCRIBERS FOR YOUTUBE PREMIUM AND YOUTUBE MUSIC. WE ARE SEEING A HUGE UPTICK. ONE OF THE AREAS OF GROWTH IN THE MUSIC WHERE IT IS APPLE MUSIC, SOME OF THE OTHER PROVIDERS ARE LAGGING RIGHT NOW. ED: WE ARE SHOWING PICTURES OF WHAT YOUTUBE MUSIC LOOKS LIKE PAT I KNEW LITTLE ABOUT YOUTUBE MUSIC. IT SEEMS LIKE SOMETHING SIMILAR OR AKIN TO SPOTIFY. AUSTIN: IT IS A LITTLE BIT SIMILAR IN THE SENSE THAT THEY HAVE A LOT OF THE STREAMING TRACKS. IT IS DIFFERENT IS THAT IT IS CONNECTED TO THE DATA THAT IS TAKEN FROM USING THE YOUTUBE VIDEO WEBSITE. IF YOU ARE SEARCHING SOMETHING FOR YOUTUBE AND YOU COME ACROSS A LATE-NIGHT TALK SHOW WITH A

PARTICULAR ARTIST, LET'S SAY,
TALKING TO CONAN O'BRIEN, THAT WILL INFLUENCE YOUR SONG
RECOMMENDATIONS ON YOUTUBE MUSIC.
SUDDENLY, YOU MIGHT SEE MORE BONO.
IT IS THIS WEIRD AMALGAMATION. THAT IS ONE THING THAT YOUTUBE
HAS ALWAYS STRUGGLED WITH. WHAT IS IDENTITY?
IT IS THIS MASSIVE PLATFORM, BUT THEY HAVE TRIED TO CARVE OUT
SEPARATE BRANDS. THEY HAVE YOUTUBE TV, WHICH IS
PAID TELEVISION, AND THIS IS YOUTUBE MUSIC, A STANDALONE APP.
IT IS TRYING TO TAKE ADVANTAGE OF THAT SCALE AND DATA THAT
THEY HAVE COLLECTED OVER THE YEARS, FROM VIEWING HABITS. ED:
VIEWING HABITS. YOU HAVE TO ACCEPT THAT THE CONSUMER HAS
DIFFERENT HABITS AND MARKETS.

AROUND THE WORLD.
WHERE IS THE GROWTH FOR YOUTUBE MUSIC COMING FROM?
NOT NECESSARILY HERE IN NORTH AMERICA. AUSTIN:
IT IS COMING FROM EMERGING MARKETS WHERE YOUTUBE IS
GIGANTIC, JUST THE VIDEO WEBSITE IS GIGANTIC.
I THINK THAT IS IN THE KEEPING THAT GOOGLE IS LEANING INTO.
OF THE 100 MILLION SUBSCRIBERS FOR YOUTUBE SUBSCRIPTIONS, THEY
DON'T BREAK DOWN THE DIFFERENCE BETWEEN YOUTUBE'S AD-FREE VIDEO
SITE AND A MUSIC PLAYER. THE WAY THEY HAVE GROWN BOTH OF
THEM IS BY MERGING THEM INTO THIS ALL-IN-ONE PACKAGE THAT
YOU CAN GET, JUST CALLED THE YOUTUBE PREMIUM APP.
THE THING IS, FOR ME, I SUBSCRIBE TO YOUTUBE TV, GOOGLE
CLOUD STORAGE, YOUTUBE PREMIUM.

BUT I STILL HAVE NOT BROUGHT
MYSELF TO USE THE MUSIC PLAYER. I STILL SCRIBE TO SPOTIFY.
USING IT THIS PAST WEEK, IT IS THE INTERESTING.
IT'S DIFFERENT FROM WHAT YOU SEE FROM APPLE AND SPOTIFY AND
AMAZON. I THINK IS WORTH A GO IF YOU
HAVE NOT TRIED IT. ED: AUSTIN CARRR, THANK YOU VERY
MUCH. WE TAKE A LOOK AT MOBILE VIDEO
EDITING PLATFORM CAP CUT, WHICH IS SEEING GAINING POPULARITY.
THIS GROWTH COULD BE THREATENED BY THE POTENTIAL TIKTOK BAND AS
CAPCUT IS OWNED BY THE SAME PARENT COMPANY, BYTEDANCE.
THIS IS BLOOMBERG TECHNOLOGY. ♪ ED:
MOBILE VIDEO EDITING APP CAPCUT IS GAINING POPULARITY, PUTTING
PRESSURE ON LONGTIME CREATIVE

SOFTWARE LEADERS LIKE ADOBE.
CAPCUT IS OWNED BY BYTEDANCE, TIKTOK'S CHINESE PARENT COMPANY.
MEANING THE THREAT TO BAN TIKTOK WILL MARK THE END FOR
CAPCUT IN THE U.S. AS WELL. LET'S BRING IN OUR
CORRESPONDENT WHO HAS BEEN WRITING ABOUT THIS.
STARTING IN 2020 PANDEMIC, THE USAGE OF CAPCUT HAS ROCKETED
AND TAKEN IT TO A NEW LEVEL. >> YEP. ADOBE, MAKER OF CREATIVE
SOFTWARES LIKE PREMIERE AND OTHERS, THEY HAVE HOPED TO GET
A PIECE OF THIS CASUAL CONTENT CREATED MARKET.
CAPCUT HAS BEEN ABLE TO GO CRAZY WITH THAT. THEY ARE THE SAME COMPANY AS --
THEY ARE OWNED BY THIS IN COMPANY IS TIKTOK.
YOU SEE A CERTAIN VIDEO FORMAT.

YOU CAN BE LIKE, LET ME
RE-CREATE THIS. IT IS A FORMAT OF EDITING THAT
IS SIMILAR TO WHAT EXISTED BEFORE IT.
IT HAS PICKED UP 300 MILLION MONTHLY ACTIVE USERS IN A WAY
THAT IS PRETTY WILD. ED: THE RISK IS BY ASSOCIATION AND
SAME PARENT COMPANY. TIKTOK'S FATE, CAPCUT'S, IS CLOSELY TIED
TO IT. BRODY: THAT'S RIGHT. THE BILL. WE HAD A SENIOR
LAWMAKER CONFIRMED TO US, YES, THIS WOULD INCLUDE CAPCUT.
CAPCUT IS OWNED BY BYTEDANCE. THEY SHARE OFFICE SPACE WITH
TIKTOK IN L.A. ALL OF THE SAME RISKS APPLY.
WILL IT BE HARD TO FIND SOMEONE TO BUY CAPCUT?
WOULD BYTEDANCE BE OPEN TO THAT? THAT IS NOT CLEAR.
WHAT IS CLEAR IS WE HAVE A LOT

OF USERS THAT WOULD PROBABLY
NOT HAPPY IF THIS APP WENT POOF. ED: INTERESTING FOR ADOBE. WHAT THEY HAVE STRUGGLED WITH,
AND FOR CAPCUT, IT WOULD TAKE THE LEGS OUT FROM UNDERNEATH
THEM IN THIS BATTLE. BRODY: IT IS A FUNNY THING FOR ADOBE.
YOU MIGHT THINK, IF CAPCUT GOES AWAY, IT'S GOOD FOR THEM.
NOT REALLY. BECAUSE TIKTOK IS ALSO A PLACE
WHERE CONTENT CREATION IS GOOD FOR ABILITY.
THE MORE SOCIAL MEDIA IS, THE MORE YOU NEED CONTENT CREATION
APPS. IT IS DARNED IF YOU DO, DARNED
IF YOU DON'T WITH ADOBE. ED: IS CAPCUT MAKING ANY MONEY?
BRODY: $5 MILLION A YEAR ACCORDING TO
ESTIMATES. THAT IS A LOT IN TERMS OF
OCCURRING REVENUE AT THIS STAGE

IN THE APP'S LIFE HERE, THAT IS NO JOKE. ED: BRODY FORD BRINGING THIS NEW NAME TO US, BUT GOING TO THE STORY AND LOOKING AT THE CHART, THE GROWTH RELATIVE TO THE COMPETITION IS ABSOLUTELY WILD. WHAT ARE YOU USING RIGHT NOW? THERE IS A FRUSTRATION THERE, THAT TEXT TO VIDEO'S IN PARTICULAR, NOT WHERE WE WANTED TO BE. IT HAS LIMITATIONS. THAT IS PART OF THE ADOBE STORY AS WELL. BRODY: ABSOLUTELY. I THINK THE WHOLE IDEA THAT TEXT TO VIDEO IS WHAT IS GOING TO DESTROY THE INCUMBENT, I THINK THAT IS QUITE A BIT FURTHER OUT. CAPCUT IS THIS INTERESTING THING WHERE IT IS SOMEWHERE IN BETWEEN. IT USES A LOT OF TEMPLATES AND BETWEEN.

I USED TO MAKE DOCUMENTARIES BEFORE I BECAME A PRINT JOURNALIST. A LOT OF MY FRIENDS FROM THAT ERA ARE STARTING TO SWITCH OFF OF APPS LIKE ADOBE. THEY ARE STARTING TO GO TO THESE SIMILAR THINGS. I THINK IT IS HAPPENING ACROSS THE INDUSTRY. THE TRUE TEXT TO VIDEO AI, IT IS OUT THERE, IT IS COMING, BUT WHAT IS HAPPENING TODAY IS THE SYMBOL OR TOOLS. ED: YOU GO BACK TO THE IDEA WHERE IF YOU ARE A CREATOR ON TIKTOK, WHY WOULD YOU NOT USE SOMETHING AND I WILL GUESS LIKE CAPCUT? BRODY FORD, CONSTANTLY UNEARTHING THINGS I DID NOT KNOW ABOUT. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. STAY WITH US THIS WEEK. WE WILL CONTINUE TO BREAK DOWN

THE BIGGEST TECHNOLOGY EARNINGS.
WHAT A WEEK IT IS IN THAT CONTEXT.
DON'T FORGET TO CHECK OUT OUR PODCAST. YOU CAN FIND ON THE
TERMINAL AND ONLINE AT APPLE, SPOTIFY, I HARD, AND ALL OF THE
BLOOMBERG PLATFORM. SPARED FROM NEW YORK CITY, THIS IS
BLOOMBERG TECHNOLOGY.

Apple's AI Delay and Trump's Pro-Crypto Turn | Bloomberg Technology

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Apple's AI Delay and Trump's Pro-Crypto Turn | Bloomberg Technology

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