Market Outlook: The podcast highlighted concerns over potential U.S. restrictions on software exports to China, which could impact U.S. companies and contribute to ongoing market volatility.
Netflix Earnings: Netflix faced a tax dispute in Brazil affecting its margins, but overall results were buoyed by strong content performance, with the stock tripling over two years despite recent declines.
Google-Anthropic Deal: Google is in talks with Anthropic to provide cloud services, leveraging its custom AI chips, which underscores the competitive dynamics in the AI sector and the importance of computing capacity.
Tech Sector Challenges: The podcast discussed the broader tech sector, including job cuts at Meta and the challenges of power supply for data centers, highlighting the industry's rapid evolution and infrastructure constraints.
Tesla's Prospects: Tesla's upcoming earnings were anticipated with a focus on its ability to sustain delivery growth amid changing tax incentives and long-term production goals.
Quantum Computing: Google's quantum computing breakthrough was noted as a significant advancement, potentially transforming industries like healthcare through enhanced computational capabilities.
Robotics and Automation: Amazon's advancements in robotics, such as the Blue Jay robot, emphasize the company's focus on efficiency and safety, with implications for labor dynamics in the future.
Transcript
>> THIS IS "BLOOMBERG BUSINESSWEEK," REPORTING FROM THE GLOBAL MAGAZINE THAT HELPS LEADERS STAY AHEAD, WITH INSIGHT ON THE PEOPLE, COMPANIES AND TRENDS SHAPING THE COMPLEX ECONOMY, LESS GLOBAL BUSINESS, FINANCE AND TECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESSWEEK" DAILY WITH CAROL MASSAR AND TIM STENOVEC, LIVE ON BLOOMBERG RADIO, TELEVISION, YOUTUBE AND BLOOMBERG ORIGINALS. CAROL: WE ARE LIVE AT BLOOMBERG HEADQUARTERS IN NEW YORK CITY. WE HAVE SEEN US LIVE, THE MAG 7 WEIGHING ON TRADE, BUT WE'VE SEEN TRADE WARRIORS, U.S.-CHINA AND SOFTWARE AND ALL OF THAT WEIGHING ON THE EQUITY TRADE. TIM: AND GOLD AS WELL. THE NASDAQ COMPOSITE IS LIGHTING ONE POINT 7%, THE S&P 500 DOWN A FULL PERCENTAGE POINT. CAROL: AHEAD THIS HOUR, ALL IN ON THE TECH ECONOMY, EVERYTHING FROM THE NETFLIX'S APPOINTMENT AND META-JOB CUT S, TESLA'S EARNINGS TODAY, WE'VE LEFT OUT SOME STORIES BUT IT WILL BE A TECH DEEP DIVE. TIM: WE WILL BE JOINED BY TYE BRADY FROM AMAZON ROBOTICS, HE WILL BE TALKING ABOUT THE JOBS OF THE FUTURE AND WHO OR WHAT WILL GET THEM. CAROL: AND AS A U.S. EARNINGS .2 BEST CORPORATE RESULTS IN ABOUT FOUR YEARS, WE ARE REMINDED THE BROAD ER ECONOMY IS DOING OK. WE WILL SEE WHAT ONE COMPANY IS SEEING. TIM: FIRST, HERE IS ALEXIS IN FOR CHARLIE PELLETT. ALEXIS: STOCKS OFF THEIR WORST LEVELS OF THE DAY BUT STILL UNDER PRESSURE, ON CONCERNS THERE MAY BE MORE RESTRICTIONS REGARDING SOFTWARE WITH CHINA AND THE U.S., ACCORDING TO A REPORT FROM WRITERS. THE DOW JONES INDUSTRIAL AVERAGE IS DOWN AFTER YESTERDAY'S RECORD RUN WHEN IT BRIEFLY PASSED A 7000. S&P 500 DOWN 61, NASDAQ COMPOSITE SLIDING 300 65 POINTS. GOLD DOWN ANOTHER 1.3% AND CLOSER TO $4000 PER OUNCE. NETFLIX SAYS TAX DISPUTE IN BRAZIL TOOK A RIGHT OUT OF MARGINS LAST QUARTER BUT THE REST OF ITS RESULTS WERE PRETTY GOOD. THAT IS THANKS TO SOME BIG PERFORMERS LIKE HAPPY GILMORE AND ITS MOST POPULAR MOVIE EVER. THE STOCK HAS TRIPLED IN THE LAST TWO YEARS AND HIT A RECORD IN JUNE. THE NATIONAL HOCKEY LEAGUE HAS STRUCK MULTIYEAR DEALS TO BECOME THE FIRST MAJOR AMERICAN SPORTS LEAGUE TO INK A DEAL WITH THE PREDICTION MARKET PLATFORMS. STARTUPS HAVE THE RIGHT TO USE NHL LOGOS AND TRADEMARKS ON THEIR PLATFORMS AND WILL BENEFIT FROM PROMINENT ON-SCREEN EXPOSURE DURING NATIONAL BROADCASTS. STOCKS LOWER ACROSS THE BOARD WITH THE DOW OF 382 POINTS. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS WEBER YOU GET YOUR PODCASTS. CAROL: A BUSY WEDNESDAY. WE WILL START WITH SOME OF THE STORIES OUT OF THE TECH WORLD. IT FELT LIKE A BIG DUMP TODAY AND WE WILL GET TO ONE OF THE STORES ON THE TERMINAL, TALKS BETWEEN ANTHROPIC AND GOOGLE, NETFLIX QUARTERLY DISAPPOINTMENT, TESLA MADE A HEADLINE. TIM: TRUMP ADMINISTRATION CAN -- CONSIDERING BROAD STICTION'S ON EXPORTS OF SOFTWARE. ED LUDLOW JOINS US. WE HAVE A LOT TO GET TO. FIRST, THE HEADLINE, IT CROSSED JUST BEFORE 1:00 P.M. ON THE WEST COAST, TRUMP ADMINISTRATION CAN STRING BROADER EXPORTS TO CHINA. IS THIS A POSSIBLE HURDLE TO U.S. COMPANIES? ED: A HURDLE BUT A FAMILIAR PLAYBOOK BECAUSE THE ADMINISTRATION, PRIOR ADMINISTRATIONS HAVE USED THE MECHANISM OF EXPORT CONTROLS AND SPECIFIC PIECES OF SOFTWARE AGAINST RUSSIA, IN THE CONTEXT OF THE RESPONSE TO THE WAR IN UKRAINE. THAT MECHANISM AND HOW AMERICAN TECHNOLOGY COMPANIES MIGHT HAVE TO RESPOND TO IT, THERE IS A CASE STUDY TO LOOK AT. YOU WILL ALSO REMEMBER IN THE EARLIER DAYS OF THE BACK-AND-FORTH ON SEMICONDUCTORS AND THE CONTEXT OF EXPORT CONTROLS, BOTH SIDES LOOKED AT SOFTWARE USED TO DESIGN SEMICONDUCTORS AND CUTTING EACH OTHER OFF FROM THAT. AS A DOMAIN FOR CONFLICT AS ECONOMIC ADVERSARIES IT ISN'T THAT NEW BUT THE STEP BY THE WHITE HOUSE IS INTERESTING. CAROL: IS THE BACK-AND-FORTH BETWEEN THE U.S. AND CHINA, WE KNOW THAT SO WE HAVE TO WAIT AND SEE. IT SOUNDS LIKE A FIRST SHOT AND THERE WILL PROBABLY BE MORE AS TALKS CONTINUE. LET'S GET TO ANTHROPIC AND GOOGLE, THIS BROKE LATE YESTERDAY. AN EXCLUSIVE. WHAT DID YOU GUYS FIND OUT? ED: EARLY TALKS ABOUT A SPECIFIC ARRANGEMENT FOR CLOUD AND ANTHROPIC. THE CLOUD PART IS IMPORTANT BECAUSE GOOGLE THE COMPANY IS ALREADY AN INVESTOR IN ANTHROPIC. ANTHROPIC IS AN AI LAB THAT DESPERATELY NEEDS CAPACITY. WHAT ONE SOURCE TOLD ME IS THE CENTER OF THIS IS GOOGLES PROCESSING UNITS, IT'S CUSTOM AI CHIPS. ON PAPER THIS WOULD PRESENT A BIG DEAL WHERE GOOGLE SELLS WORKLOAD CAPACITY COMPUTING FOR AI TO A MAJOR PLAYER. THAT'S ALSO ALREADY CLOSELY ALIGNED TO AMAZON. YOU NOTICE THE DIRECTION OF THOSE TWO COMPANIES, AND THAT'S THE DYNAMIC. TIM: IS THERE SOMETHING TO BE SAID ABOUT GOOGLES GEMINI VERSUS ANTHROPIC'S CLAUDE, GOOGLE IS WORKING ON ITS OWN LLM MIGHT HELP US UNDERSTAND. ED: THERE'S A LOT WE DON'T KNOW ABOUT THIS DEAL. LIKE IS THIS GOOGLE MAKING AN INVESTMENT IN ANTHROPIC IN CASH? IS IT ANTHROPIC BUYING TENS OF BILLIONS OF DOLLARS -- THEY DON'T HAVE TENS OF BILLIONS OF DOLLARS. GOOGLE IS A MINI TENTACLED BEAST. GOOGLE ENCOMPASSES DEEP MIND AND ALL OF THE AI WORK THEY ARE DOING AND EVERY TIME NEW CAPACITY COMES ONLINE, TEAMS IN GOOGLE SITE I WANT THAT, GIVE ME THE CAPACITY FOR THE AI PROJECT I'M WORKING ON. BUT FOR GOOGLE CLOUD, THEIR JOB IS TO SELL CLOUD SERVICES TO THE OUTSIDE WORLD. WHEN THEY GET NEW CAPACITY THEY ARE LIKE WE WANT TO SELL THIS THEREIN LIES THE TENSION. WE'VE BEEN TRYING TO FIND OUT QUITE A LONG TIME BEYOND GOOGLE IN-HOUSE, WHO WILL BE USING THE TPU AS THE UNDERLYING TRAINING FOR AI MODELS. CAROL: THE STORY, GREAT EXCLUSIVE BY YOU GUYS, BUT LIKE YOU SAID, THERE ARE STILL DETAILS WE DON'T KNOW AND QUESTIONS TO BE ASKED, BUT IT FEELS LIKE THERE ARE KEY PLAYERS IN THIS SPACE. WE KNOW WHO THEY ARE, YOU REPORT THEM OUT NONSTOP, THAT ARE RACING TO MAKE SURE THEY ARE NOT MISSING OUT ON HOWEVER AI INS UP SETTLING IN OUR SOCIETY. IT FEELS INCREASINGLY EVERYDAY -- AGAIN, STRANGE RELATIONSHIPS AND WE TALK ABOUT CIRCULAR FINANCING -- THERE HAS TO BE SOME FALLOUT, PEOPLE THROWING SO MUCH MONEY AND ATTENTION AND TIME. OR MAYBE NOT? ED: THE IDEA AROUND CIRCULAR FINANCING WOULD BE PUSHED BACK BY THESE COMPANIES BECAUSE THEY WILL SAY WHOEVER WE GIVE MONEY TO THERE IS ABSOLUTELY NO CONTRACTUAL REQUIREMENT YOU USE ON TECHNOLOGY. WE WILL GIVE YOU MONEY BUT YOU CAN USE ANYONE'S TECHNOLOGY. THAT'S PART ONE. PART TWO IS START FROM A PLACE WHERE YOU HAVE TO ACCEPT THE INDUSTRY IS SUPPLY CONSTRAINED. THE DEMAND FOR COMPUTING CAPACITY FOR AI MODELS, TO TRAIN NEW MODELS OR NEW GENERATION MODELS OR JUST RUN THE ONES THAT EXIST, THERE ISN'T ENOUGH CAPACITY. THE PROBLEM RIGHT NOW AND WHERE OUR NEWSROOM IS LOOKING MORE BROADLY, THERE ISN'T ENOUGH CONCRETE OR SKILLED LABOR OR POWER TO BUILD ANY OF THESE DATA CENTERS ANYWAY. WE'VE GOT A REAL PROBLEM. IF YOU ACCEPT THAT STARTING POINT, WE HAVE THIS CONSTANT DELUGE OF HEADLINES, IT'S EASIER TO UNDERSTAND. TIM: WE SPENT A LOT OF OUR EDITORIAL CALL TODAY TALKING ABOUT POWER AND THE QUESTION OF POWER AND THERE MIGHT NOT BE ENOUGH POWER IN OUR LIFETIMES TO PROVIDE ELECTRICITY TO WHAT THESE COMPANIES WANT TO DO. ED: SIMPLY PUT, THE UTILITIES, THE GRADE, CANNOT SUPPLY THE ELECTRICITY TO THOSE DATA CENTER PROJECTS ONLY ON PAPER CURRENTLY AND NOT YET BUILT. THE UTILITIES CANNOT GET THE ELECTRICITY BECAUSE THE POWER GENERATION INDUSTRY ISN'T GENERATING ELECTRICITY AT THAT SCALE. THAT'S WHY WE ARE TALKING ABOUT THE FUTURE DEALS FOR NUCLEAR POWER AND ALTERNATIVE SOURCES OF ENERGY AND THE U.S. IS FIXATED ON THE SPEED OF WHICH CHINA BRINGS NEW SOURCES OF A CITY ONLINE. AGAIN, COMPUTE CAPACITY DEALS, DATA CENTERS -- THEY OPERATE IN THE FUTURE, BUT ALL THE THINGS NEEDED TO SUPPORT THEM ARE BASED ON FUTURE AGREEMENTS AS WELL. CAROL: I DO THINK ABOUT THE SUPPLY CHAIN. YOU WILL NEED POWER TO COOL THE DATA CENTERS. THERE IS A VICIOUS CYCLE THAT WILL BE A HUGE DRAWDOWN. I WAS TALKING TO MY BROTHERS THIS WEEKEND ABOUT SMALL MODULAR REACTORS IN TERMS OF NUCLEAR, BUT YOU BRING THEM UP WITH ANYBODY AND THEY ARE 10 TO 15 YEARS OUT. TIM: SOUND GREAT BUT WE HAVEN'T SEEN THE TECH PROVEN IN THE U.S. CAROL: I WONDER HOW WE WILL POWER ALL OF THIS AND IT IS ALREADY A SUPPLY CONSTRAINT ON THE AI BUILDOUT. ED: TO BRING IT BACK TO ANTHROPIC AND GOOGLE AND TPU'S, IF YOU ARE A DATA CENTER BUILDER AND YOUR BUILDING THE BUILDING, YOU ARE A -- OR YOU ARE A NE-YO CLOUD, RIGHT NOW IT IS ONE OF THE OTHER SITUATION. EVERYONE WANTS TO USE NVIDIA CHIPS THAT EXIST. YOU CAN'T DO BOTH, THERE ISN'T ELECTRICITY FOR BOTH THE RIGHT NOW EVERYONE IS FOCUSED ON PRIORITIZING THE NVIDIA CAPACITY. WHEN WE BREAK A STORY LIKE THIS BASED ON A DEAL FOR TP USE, THE SUPPLY CHAIN READS THE STORY AND GOES I DON'T HAVE ELECTRICITY FOR THAT YET. THAT'S THE REACTION WE'VE HAD TO OUR REPORTING. I DON'T KNOW WHAT'S GOING TO HAPPEN. CAROL: TBD AS WE SAY A LOT HERE ON AI. ANOTHER STORY RELATED TO GOOGLE AND PLAYS INTO SOMETHING, WE WILL CATCH UP WITH THE MAYOR OF CHATTANOOGA, TENNESSEE, THEY HAVE BEEN BUILDING OUT A QUANTUM NETWORK IN PARTNERSHIP WITH OTHER COMPANIES. THERE IS A STORY ALSO OUT INVOLVING GOOGLE RUNNING AN ALGORITHM ON ITS WILLOW CAN'T -- QUANTUM COMPUTING CHIP. IT'S SAID TO BE A BREAKTHROUGH. WHAT DO WE NEED TO KNOW? ED: WHEN THE NEWS BROKE IN THAT MOMENT, ALPHABET SHARES HAD PARED NOTABLE DECLINE AND JUMPED UP 2%. WANT HIM COMPUTING IS A DIFFERENT TECHNOLOGY TO ACCELERATED OR SUPERCOMPUTING. THE UNDERLYING CODE BASE IS COMPLETELY DIFFERENT. ONE IS QUANTUM MECHANICS AND THE OTHER IS JUST ONES AND ZEROS. THE PERFORMANCE OF THE QUANTUM COMPUTER IS 13,000 TIMES THAT OF A SUPERCOMPUTER. THE REASON THAT MILESTONE MOVES US FORWARD IS YOU CAN START TO SAY OK, WE'VE PROVEN A SCIENTIFIC THEORY THIS TECHNOLOGY CAN BE USED IN THIS USE CASE AND DO SO BETTER THAN THE EXISTING TECHNOLOGY WE HAVE IN THE REAL WORLD TODAY. THAT'S THE STORY AND IT MOVED THE NEEDLE IN THAT MOMENT. CAROL: BUT USEFUL APPLICATIONS OF QUANTUM TECHNOLOGY WITHIN FIVE YEARS. TIM: WHAT WOULD USEFUL APPLICATION BE? ED: BASICALLY -- YOU WOULD WANT TO RUN SIMULATION OR INFINITE NUMBER OF MATHEMATICAL CALCULATIONS TO RUN SCENARIOS ON, FOR EXAMPLE, DRUGS. CAROL: I WAS SINGING HEALTH CARE. -- WAS THINKING HEALTH CARE. ED: IF YOU TAKE THE PROCESS OF WRINGING A DRUG TO MARKET BEYOND HUMAN STUDY, THE BEST WAY TO SIMULATE FOR EVERY POSSIBLE OUTCOME IS TO DO IT MATHEMATICALLY. BILLIONS AND BILLIONS OF PARAMETERS AND THAT TAKES TIME. IT'S NOT INSTANTANEOUS BUT THE QUANTUM COMPUTER CAN DO THAT. CALCULATE BEYOND THE PARAMETERS OF THE SUPERCOMPUTER. TIM: WE TOLD YOU THERE'S A LOT TO GET TO. WE ARE SPEAKING WITH ED LUDLOW FROM A BLOOMBERG ATTACK --TECH. META-PLATFORMS. I THINK THIS WAS SURPRISING FOR A LOT OF PEOPLE TO READ, CUTTING 600 JOBS FROM THE AI UNIT, THE SUPER INTELLIGENCE LAB AND AIMING TO MOVE QUICKLY IN THE COMPETITIVE AI RACE. HOW SHOULD INVESTORS READ THIS? ALEXANDER WANG SAYS THIS IS A GOOD THING, WE CAN MAKE DECISIONS MORE QUICKLY. CAROL: SOUNDS LIKE A MANAGER. [LAUGHTER] TIM: A VERY WEALTHY MANAGER. ED: I DON'T KNOW IF OUR MANAGERS ARE LISTENING. CAROL: OTHER MANAGERS. ED: THE ARGUMENT META MAKES IS FEWER PEOPLE IN THE PROCESS RESULTS IN QUICKER DECISIONS. MARK ZUCKERBERG HAS ALWAYS HAVE THE IDEA THAT UNDER THE STRUCTURE OF META, THERE'S A GROUP OF I THINK HE SAID 25 TO 30 PEOPLE UNDER HIM THAT CONSTANTLY TALK WITH EACH OTHER AND GET STUFF DONE AND EACH KNOWS WHAT'S HAPPENING ON EACH SIDE OF THE BUSINESS. BUT TO THE POINT OF WHY IT SURPRISING, THE HEADLINES FOR MOST OF THE YEAR HAVE BEEN ABOUT META PAYING HUNDREDS OF MILLIONS OF DOLLARS IN COMP TO BRING IN TALENT FROM OTHER COMPANIES. THEY ARE SAYING BOTH, WE ARE CUTTING SOME OF THE TEAM WE GREW AGGRESSIVELY AND SPENT A LOT OF MONEY ON BUT THEY BELIEVED THERE WERE TOO MANY PEOPLE AND HAVING A STREAMLINED APPROACH ON THE AI TEAM WILL RESULT IN SHIPPING PRODUCTS BASICALLY. CAROL: I DO LIKE STREAMLINED MANAGEMENT, I WON'T ARGUE WITH THAT, I LIKE BEING DIRECT AND KNOWING WHO TO GO TO TO GET AN ANSWER QUICKLY, WHICH IS WHAT WE HAVE. [LAUGHTER] LET'S TALK ABOUT EARNINGS, NETFLIX LAST NIGHT AND TESLA AFTER THE CLOSE TODAY. WHAT ABOUT NETFLIX 24 HOURS LATER AND WHAT ARE YOU WATCHING FOR TESLA? ED: NETFLIX, INVESTORS ARE SPOOKED BY AN ACCOUNTING ISSUE, A TAX DISPUTE FROM A PRIOR FINANCIAL YEAR WITH THE BRAZIL THAT IMPACTED FINANCIALS. THE BIGGER PICTURE STORY FOR NETFLIX HAS BEEN THEY BEEN ABLE TO GENERATE REALLY IMPRESSIVE FREE CASH FLOW WHILE ALSO HAVING A STRONG CONTENT SLATE. THE BUSINESS MODEL FOR STREAMING ALWAYS IN WESTERN, IF CONTENT IS KING AND YOU NEED THE BEST CONTENT, HOW CAN YOU DO THAT PROFITABLY? THE STOCK IS DOWN THE MOST SINCE APRIL 2022 BUT A LOT OF THE STREET ARE CHEERING THE ABILITY TO DO THAT, HAVE AMAZING SHOWS AND CONTENT WITH MORE TO COME AND STILL HAVE REALLY IMPRESSIVE TRADITIONAL FINANCIAL METRICS, WHICH NETFLIX HAS BEEN CALLING ON WALL STREET A LONG TIME TO SAY JUDGES BY THESE AND NOT SUBSCRIBER COUNT. TIM: I WANT TO DO MORE NETFLIX BUT WE SHOULD HIT TESLA BECAUSE THEY ARE REPORTING AFTER THE BELL TODAY. WE GOT GOOD NUMBERS FROM TESLA OF LATE, RECORD DELIVERIES. WE KNOW THAT AS OF NOW. WHAT'S THE BIG QUESTION YOU HAVE? ED: IT'S REALLY SIMPLE, SHORT-TERM AND LONG-TERM. IN THE QUARTER GONE THEY DID ALMOST 500,000 EV DELIVERIES. A LOT OF THAT WAS CONSUMERS RUSHING TO BUY TESLA BEFORE THE FEDERAL TAX CREDIT WENT AWAY. ON NOVEMBER 6, VOTERS WILL VOTE ON ELON MUSK'S COMPENSATION PACKAGE. ONE OF THE GOAL SET TO HIM WAS TO DELIVER 20 MILLION VEHICLES IN THE 10 YEAR PERIOD, I'M NOT GREAT AT MATH BUT THAT MEANS 500,000 PER QUARTER. IF THAT QUARTER JUST GONE WAS AN ANOMALY, HIGH BECAUSE OF PEOPLE RUSHING TO TAKE ADVANTAGE OF A CREDIT THAT IS NO LONGER THERE, CAN THEY EXPLAIN HOW THEY WILL ACHIEVE THAT OVER THE NEXT 10 YEARS EVEN THOUGH THEY WILL TELL US AI AND ROBOTICS IS THE FOCUS? TIM: YOU KNOW HOW WE KNOW HE'S BEEN LIVING IN THE U.S. A LONG TIME, HE SAID MATH INSTEAD OF MATHS THEM WHEN DID YOU SWITCH? ED: WHEN MY WIFE GOT ME FOR SAYING ROUT INSTEAD OFROUTE. ELEVATOR. [LAUGHTER] CAROL: THAT DIDN'T SOUND RIGHT. ED LUDLOW AROUND THE WORLD, THE MASSIVE WORLD THAT IS TECHNOLOGY, COVERING IT ALL. WE WILL TALK TO HIM LATER WHEN TESLA REPORTS. THAT IS ED LUDLOW, CATCH HIM AND CAROLINE HYDE 11:00 A.M. WALL STREET TIME MONDAY THROUGH FRIDAY. WE WILL STAY IN THE TECH UNIVERSE. ROBOTICS IS GETTING A LOT OF ATTENTION. WE HAVE AMAZON'S CHIEF TECHNOLOGIST BACK WITH US. SO MANY QUESTIONS. ALEXIS: I AM ALEXIS CHRISTOPHERSON. A MOMENTUM TRADE UNWIND, MEGA CAPS LEADING THE SELLOFF, REPORT SEEING THE TRUMP ADMINISTRATION IS WEIGHING RESTRICTIONS ON SOFTWARE EXPORTS TO CHINA, ADDING TWO LINGERING WORRIES ABOUT U.S.-CHINA TRADE RELATIONS. THE DOW IS DOWN, THE S&P 500 DOWN 55, THE NASDAQ OFF 337, A LOSS OF 1.5%, NASDAQ 100 ALSO DOWN 1.5%. TESLA IN THE SPOTLIGHT, EARNINGS DO AFTER THE CLOSE, ANALYSTS EXPECTING A DECREASE IN ADJUSTED EARNINGS FROM THE PREVIOUS YEAR DESPITE RECORD VEHICLE SALES. TESLA IS ALSO RECALLING ABOUT 13,000 EV'S OVER AN ISSUE THAT COULD CAUSE A SUDDEN LOSS OF BATTERY POWER, INCREASING THE RISK OF A CRASH. AHEAD OF EARNINGS, TESLA DOWN 2%. SHARES OF A THERAPEUTICS COMPANIES, ONE OF THE BIGGEST LOSERS ON THE NASDAQ TODAY AFTER THE BIOTECH'S EXPERIMENTAL THERAPY FOR CYSTIC FIBROSIS SHOWED NO IMPROVEMENT IN PATIENTS. THEY ARE ALSO DISCLOSING A SERIOUS ADVERSE EVENT IN ONE PATIENT. THE STOCK DOWN 53%. SHARES OF APPLE UNDER PRESSURE TODAY AFTER ITS IPHONE AIR WAS MET WITH A TEPID DEMAND IN CHINA. THE NIKKEI REPORTING APPLE DRASTICALLY CUT ITS OWNERS -- ORDERS FOR THAT. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. THAT'S A BLOOMBERG BUSINESS FLASH. CAROL: THANK YOU. THOMAS BLACK RECENTLY WROTE AN OPINION PIECE AND TALKED ABOUT THE HYPE AROUND HUMANOID ROBOTS BEING HIGH WITH FORECAST OF NEARLY ONE BILLION HUMANOIDS AND SERVICE BY 2050 BUT THE REALITY IS, MOST PEOPLE OVERESTIMATE WHAT ROBOTS CAN DO AT THIS POINT THEIR DEVELOPMENT. ONE COMPANY USING ROBOTS A LOT AND FOR A LONG TIME AND HAS DEPLOYED ITS ONE MILLIONTH ROBOT HAPPENS TO BE ONE OF THE WORLDS ARE JUST MARKET CAP COMPANIES AND A HOUSEHOLD NAME. WE WANTED TO CHECK IN WITH TYE BRADY, CHIEF TECHNOLOGIST AT AMAZON ROBOTICS. HE JOINS US FROM THE AMAZON DELIVERING THE FUTURE EVENT FROM THE DELIVERY STATION IN CALIFORNIA. WE KIND OF WANT TO FIND OUT WHERE THEY ARE IN TERMS OF THE WORLD OF ROBOTICS. WE LOVE TO TALKING TO YOU LAST TIME SO SO GLAD TO CHECK IN AGAIN. THIS EVENT WHERE YOU ARE, RIGHT NOW I JUST SEE A CURTAIN BUT I ASSUME THERE'S LOTS OF STUFF HAPPENING. WHO IS THERE, WHAT IS GOING ON, TELL US ABOUT IT. TYE: THANK YOU FOR HAVING ME, I APPRECIATE THAT AND I ENJOYED OUR CONVERSATION AS WELL. IT'S GREAT TO BE HERE. OUR FOURTH DELIVERING THE FUTURE EVENT HERE AND THERE'S A BUNCH OF PRESS AND WE'VE MADE SOME BIG ANNOUNCEMENTS IN ROBOTICS TODAY. CAROL: CAN YOU TELL US ABOUT THEM? [LAUGHTER] TYE: THE FIRST IS IN OUR MANIPULATION WROTE UP WE CALL -- MANIPULATION WR ROBOT CALLED BLUE JAY, IT HELPS ELIMINATE THE MENIAL, MUNDANE AND REPETITIVE AND CAN PICK MORE THAN 75% OF THE INVENTORY WE SELL IN OUR SORTABLE NETWORK WHICH IS A BIG DEAL. SOMETHING INTERESTING ABOUT BLUE JAY AS WELL, COMPARED TO OUR OTHER BIRD MANIPULATION SYSTEMS -- CARDINAL, SPARROW AND ROBIN -- IT TOOK US ABOUT THREE YEARS TO DESIGN, DEPLOY AND GET TO FRONTLINE EMPLOYEES, WE'VE DONE BLUE JAY WITH THE POWER OF AI IN JUST OVER A YEAR. THAT'S THE PACE OF INNOVATION. TIM: A LOT OF PEOPLE THINK ABOUT AMAZON AND ROBOTS, I WANT TO JUMP IN BECAUSE WE DON'T HAVE A TON OF TIME, THEY THINK OF THE BIG ACQUISITION, IN 2012 IT WAS A BIG ACQUISITION FOR AMAZON. THEY'VE SEEN PICTURES OF HOW THEY CAN MOVE LARGE LOADS OF THINGS ACROSS WAREHOUSES. BUT IF YOU'RE GOING TO A STATE-OF-THE-ART AMAZON WAREHOUSE TODAY, WHAT WOULD YOU SEE IN ADDITION TO THOSE ROBOTS? TYE: IN ADDITION TO THE WORLD'S FIRST GOODS TO PERSON FULFILLMENT STRATEGY, WHICH WAS A REALLY GOOD IDEA, WE HAVE MORE THAN A MILLION ROBOTS WE MANUFACTURE IN MASSACHUSETTS DOING THAT JOB EVERY DAY, YOU WILL SEE MORE OF THE UNSTRUCTURED FIELDS. YOU WILL SEE A ROBOT CALLED PRODUCE THAT CAN MOVE BIG CARGOES OF PACKAGES TO THE RIGHT DOCK AT THE RIGHT TIME. YOU WILL SEE MANY MORE MANIPULATION SYSTEMS ELIMINATING REPETITIVE MOTIONS, NO ONE WANTS TO LIFT A 50 POUND BOX ALL DAY. ROBIN AND CARDINAL DO THAT, MOVING INTO SOME OF THESE CARTS WE HAVE. YOU WILL SEE MUCH MORE COLLABORATIVE ROBOTICS. THAT'S WHERE WE BUILD ROBOTICS SYSTEMS TO ENABLE PEOPLE TO AUGMENT WHAT PEOPLE ARE CAPABLE OF AND WE BELIEVE IN THE PHILOSOPHY OF PEOPLE AND MACHINES WORKING TOGETHER. HOW CAN WE BUILD A TOOLSET THAT ENABLES EMPLOYEES TO DO THEIR JOB NOT ONLY MORE EFFICIENTLY BUT ALSO WITH BETTER SAFETY IN MIND? CAROL: THE ROBOT ARMY CALLED BLUE JAY -- ARM CALLED BLUE JAY YOU TALKED ABOUT, AND YOU'RE ALSO WORKING WITH AUGMENTED REALITY LOSSES TO BE WORN BY DRIVERS IN DELIVERY TRUCKS IN THE FIELD. THERE IS SO MUCH GOING ON. STEP BACK FOR A MOMENT BECAUSE YOU HAVE A LOT OF DATA, YOU LOOK AT WHAT YOU ARE DOING. INVESTORS THINKING ABOUT AMAZON AND WHAT YOU ARE DOING, HOW DO THEY THINK ABOUT THE LONG-TERM ROI, RETURN ON INVESTMENT IT COMES TO THE INVESTMENT IN ROBOTS? IS THE GO LABOR EFFICIENCY, THROUGHPUT SPEED, MARGIN EXPANSION ACROSS FULFILLMENT OPERATIONS, WHAT IS IT? TYE: DEFINITELY EFFICIENCY. WE THINK ABOUT EFFICIENCY AND HOW TO GAIN EFFICIENCY THROUGH THE CHAIN OF OUR FULFILLMENT PROCESSES. YOU MENTIONED DATA AND DATA IS THE FUEL FOR AI SYSTEMS. DATA HAS ALLOWED US TO BRING -- THINK OF THE BODY OF ROBOTICS BUT BRING THE MIND TO ROBOTICS. MORE ADAPTABLE AND FLUID. YOU CAN ALMOST THINK ABOUT THE ABILITY TO POUR ROBOTICS INTO ANY SIZE OR SCALE OF BUILDING TO AMPLIFY WHAT OUR EMPLOYEES ARE ALREADY DOING. WE WANT TO GIVE THEM AN AMAZING TOOLSET. WHEN WE DO THAT WE ARE MORE PRODUCTIVE. WHEN YOU DO ROBOTS WRITE, WHEN YOU DO COLLABORATIVE ROBOTS, PEOPLE AND MACHINES DOING WHAT THEY DO BEST -- AND THEY DO DIFFERENT THINGS BETTER -- YOU ARE MORE PRODUCTIVE, AND THAT ALLOWS YOU TO INVEST MORE IN PEOPLE, WE HAVE SKILLED MORE THAN 700,000 EMPLOYEES. AND ALSO IN ROBOTICS, WE'VE EXPANDED FROM JUST A MOVEMENT SOLUTION TO MOVEMENT AND MOBILITY AND SORTING AND STORAGE AND PER SEPTAGE -- PERCEPTION AND PACKAGING THAT CHANGES THE GAME FOR OUR CUSTOMERS. CAROL: WILL YOU NEED LESS WORKERS -- I HAVE TO BRING IT UP. THE TIMES HAD A STORY, TALKED ABOUT INTERVIEWS AND A CACHE OF INTERNAL DOCUMENTS THAT THEY SAW THAT EXECUTIVES THINK THE COMPANY IS ON THE CUSP OF ITS NEXT BIG WORKPLACE SHIFT AND REPLACING HAVE A MILLION JOBS WITH ROBOTS. WE KNOW THINGS CHANGE, I GET IT, I DON'T GET IT TIMES OF FAXES OR PIECES OF PHYSICAL MAIL, THANK GOD. HAVING SAID THAT, DO YOU BELIEVE YOU ARE ON THE CUSP OF A WORKPLACE SHIFT AND YOU WON'T NEED AS MANY WORKERS BECAUSE OF THE ADVANCEMENTS IN ROBOTICS? TYE: THERE'S NO DOUBT THINGS CHANGE. WE ARE PROUD OF THAT AT AMAZON, WE AVOID STASIS AT ALL COSTS. WE CHANGE AND ADAPT AND THE NATURE OF TASKS CHANGE, NO DOUBT ABOUT THAT. WE ARE LASER FOCUSED ON EFFICIENCIES. THAT ARTICLE WAS SPECULATING 10 YEARS OUT. IT'S HARD TO SAY WHAT WILL HAPPEN IN THE NEXT 10 YEARS BUT I CAN TELL YOU ABOUT THE LAST 10 YEARS. THE LAST 10 YEARS, WE SERIOUSLY INVESTED IN ROBOTICS, WE CREATED HUNDREDS OF THOUSANDS OF NEW JOBS AND NEW JOB TYPES AND THERE'S NO EMPLOYER IN THE UNITED STATES THAT HAS EMPLOYED MORE PEOPLE THAN AMAZON. IN 10 YEARS. THAT'S THE POWER OF EFFICIENCIES AND BUILDING ROBOTS IN A WAY THAT AUGMENTS HUMAN POTENTIAL. CAROL: MIGHT BROTHER SAYS I'M LIKE A DOG WITH A BONE. SO 10 YEARS OUT IT COULD BE LESS JOBS OR YOU DON'T KNOW? TYE: THERE ARE JOBS AND THERE ARE TASKS. WE ARE CHANGING TO MAKE SURE TASKS -- I'M BULLISH ON ELIMINATING EVERY MUNDANE AND REPETITIVE JOB, NOBODY WANTS TO DO THAT. WE WILL CHANGE THOSE TASKS 100%. AS HISTORY HAS SHOWN, WE CONTINUE TO CREATE JOBS. WE HAVE A GOAL OF TWO THINGS -- CAN YOU BE MORE PRODUCTIVE, WHICH MEANS MORE EFFICIENCY, AND CAN YOU CREATE A SAFER ENVIRONMENT FOR EMPLOYEES AND WE ARE DOING BOTH. THAT'S WHAT HISTORY HAS SHOWN. OTHER THAN 30% REDUCTION IN OUR OVERALL RECORDABLE ENTRY RATE BECAUSE OF ROBOTICS AND MUCH MORE EFFICIENT. OUR LATEST GENERATION FULFILLMENT CENTER ENTRY POINT IS 25% MORE EFFICIENT. YOU'VE GOT TO BUILD YOUR ROBOTICS IN A RIGHT WAY. TIM: WERE SPEAKING WITH THE CHIEF OF AMAZON ROBOTICS. WHEN YOU THINK ABOUT HIRING FOR SEASONAL EVENTS, I'M WONDERING HOW YOU'RE PUTTING PENCIL TO PAPER AND TO WHAT EXTENT AUTOMATION HAS REDUCED DEPENDENCY ON SEASONAL OR HOURLY LABOR. WHAT WILL THAT LOOK LIKE THIS YEAR OR NEXT YEAR? TYE: THE SAME PHILOSOPHY OF EMPOWERING PLOYS WHETHER THEY ARE TEMPORARY OR FULL-TIME EMPLOYEES WITH THE WORLD'S BEST MACHINES THAT HELP THEM DO THEIR JOB. I'M PROUD OF THE FACT THAT THIS YEAR FOR MORE THAN 250,000 TEMPORARY JOBS FOR EMPLOYEES TO COME IN DURING THE HOLIDAY SEASON, THOSE ARE GOOD PAYING JOBS AND I'M HAPPY ABOUT THAT. AND REALLY PLEASED WITH WORK MEN AND WOMEN HAVE DONE IN THE ROBOTICS FIELD, PIONEERING PHYSICAL AI SYSTEMS THAT HELP THEM DO THEIR JOBS BETTER. CAROL: ONE THING I'VE BEEN THINKING A LOT ABOUT IS WHAT'S GOING ON OVERSEAS, WHETHER IT'S CHINA OR JAPAN. WE'VE DONE SOME REPORTING ABOUT SERVICE INDUSTRIES IN JAPAN THAT ARE LEADING INCREASINGLY IN ROBOTICS, HAVE YOU BEEN OVER THERE AND I'M CURIOUS IF YOU'RE SEEING THINGS THAT ARE PRETTY IMPRESSIVE AND THE U.S. AS A CREATOR OF THINGS OR ITS ROLE IN THE ROBOTICS INDUSTRY HAS TO KEEP A WATCH ON WHAT'S GOING ON IN OTHER COUNTRIES? TYE: I THINK IT'S EASY, ESPECIALLY IN ROBOTICS, TO GET DISTRACTED ABOUT WHAT OTHER PEOPLE ARE DOING. I THINK ANYBODY CAN MAKE A YOUTUBE VIDEO AND POP IN AND OVERFLIGHT SOMETHING. IF YOU COME INTO OUR WORLD, IT'S ALL ABOUT APPLICATION. OUR WORLD IS ABOUT THE REALITY -- CAROL: WE ARE TALKING WITHTYE BRADY AT AMAZON. OF COURSE OUR SHOT FROZE AND THAT IS THE WORLD OF TECHNOLOGY. STUFF HAPPENS. WE HOPE WE CAN GET HIM BACK TO FINISH UP THE CONVERSATION. TIM: MAYBE THE ROBOTS ARE USING ALL THE WI-FI. [LAUGHTER] THAT IS A CONDUCTIVITY THING THOUGH. RESOURCES. CAROL: YOU HAVE TO CHARGE THESE PUPPIES. TIM: WE NEED RECHARGING,TOO. CAROL: FOOD AND SLEEP. DO WE HAVE TYE BACK FOR 20 SECONDS? FORGIVE US -- FINAL THOUGHTS. TYE: SORRY ABOUT THAT. I'M READY FOR YOU. CAROL: FINAL THOUGHTS FOR OUR AUDIENCE? TYE: FINAL THOUGHTS, ROBOTICS WIND ON THE RIGHT WAY, WHEN YOU REFRAIN THE RELATIONSHIP WITH MACHINES, YOU ENABLE MORE PRODUCTIVITY, CREATE GREATER EFFICIENCIES IN A SAFER ENVIRONMENT FOR EMPLOYEES. THIS COLLABORATIVE MINDSET WE'VE DONE FOR THE LAST 10 YEARS REALLY DOES MAKE A DIFFERENCE. ♪ ALEXIS: STOCKS UNDER PRESSURE ON RENEWED CONCERNS ABOUT U.S.-CHINA TRADE RELATIONS. WRITERS REPORTING THE WHITE HOUSE IS WEIGHING CURBS ON EXPORTS TO CHINA MADE WITH U.S. SOFTWARE. SOURCES REPORTEDLY SAY THE PLAN IS JUST ONE OF THE OPTIONS BEING CONSIDERED AND MIGHT NOT HAPPEN. EVEN SO WE HAVE THE DOW INDUSTRIALS DOWN 374 POINTS, THE S&P 500 DOWN 54, NASDAQ OFF 325 POINTS, A LOSS OF 1.4%. TEXAS INSTRUMENTS LEADING THE SHELL OFF IN -- SELLOFF TODAY AFTER WEAKER THAN EXPECTED RESULTS. SHARES OF TEXAS INSTRUMENTS DOWN 7.6%, LEADING OTHER CHIP STOCKS LOWER AS WELL. AMD DOWN 4.5%, MICRON TECHNOLOGY OFF MORE THAN 3%. AT&T SAYS IT ADDED MORE MOBILE PHONE AND HOME INTERNET SUBSCRIBERS AND ANALYSTS EXPECTED LAST QUARTER BUT PRICEY MOBILE PROMOTIONS TO WIN OVER NEW CUSTOMERS WEIGHED ON REVENUE. SHARES AND DOWN 2.4%. THE NEW YORK GIANTS HAVE A NEW CO-OWNER, THEY OWN A 10% STAKE, VALUING THE GIANTS AT $10.3 BILLION. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBED TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. THAT IS YOUR BLOOMBERG BUSINESS FLASH. BACK OVER TO CAROL AND TIM. CAROL: THANK YOU. JUST PULLING UP TAKING A LOOK AT HILTON WORLDWIDE, STOCKS AS MUCH AS 5% UP TODAY. AMONG THE TOP GAINERS ON THE S&P 500. RALLYING AFTER THE COMPANY BOOSTED THE LOWER END OF THE FULL YEAR OUTLOOK. OUR NEXT GUEST IS ALSO A BIG OPERATOR IN THE HOSPITALITY SPACE. TIM: BACK WITH US IS ALAN FUERSTMAN, FOUNDER, CHAIRMAN AND CEO OF MONTAGE INTERNATIONAL. HE JOINS US IN THE STUDIO. HOW ARE YOU? ALAN: TERRIFIC, GREAT TO BE HERE. TIM: WE'VE BEEN SPENDING A LOT OF TIME ON THE ROAD AND THINGS ARE CROWDED AND IT SEEMS LIKE THE HIGH END IS DOING WELL. ALAN: IT IS, THE LUXURY SEGMENT IN GENERAL, UP 3% OR 4% FROM LAST YEAR AND WE ARE DOUBLE THAT. TREMENDOUS INTEREST IN LUXURY PRODUCTS. CAROL: WHO IS YOUR CUSTOMER? ALAN: IT VARIES FROM PROPERTY TO PROPERTY, AT RESOURCE IT IS PEOPLE COMING FOR LEISURE, WE DO HIGH END MEETINGS AS WELL. GLOBAL. MORE INTERNATIONAL BASED -- MORE AMERICAN-BASED BUT INTERNATIONAL AS WELL. IT VARIES BY SEASON AND TIME OF YEAR, SOME OF OUR PROPERTIES ,Y IS ALMOST ALL LEISURE, OTHER PROPERTIES, WE DO MORE ON THE MEETING SIDE. IT CAN BE AS MUCH AS 50% EACH. OTHER PROPERTIES ARE MORE THE INDIVIDUAL TRAVELER. TIM: HAVE YOU SEEN THE DEMOGRAPHIC SHIFT SINCE PRESIDENT TRUMP TOOK OFFICE FOR THE SECOND TERM, SOMEWHAT OF A CRACKDOWN ON IMMIGRATION, AND INTERNATIONAL TRAVEL FROM CANADA HAS FOLLOWED A LITTLE BIT, WE'VE GOT SOME NUMBERS IN NEW YORK, IS THAT AFFECTING YOU? ALAN: NOT REALLY, WE HEAR ANECDOTAL STORIES BUT NO, WE HAVEN'T FELT THAT WE LOOK AT OUR GROUP BOOKING, THE BEST LEADING INDICATOR FOR THE FUTURE, LOOKING AT NEXT YEAR, WE ARE AHEAD OF PREVIOUS YEARS. ALL GOOD INDICATIONS, BUT WE RELY LESS ON INTERNATIONAL TRAVEL THAN SOME OTHER BRANDS. TIM: WHAT ABOUT THE AGE OF THE PEOPLE COMING TO THE RESORTS? IS IT FULL OF PEOPLE IN THEIR 40'S AND 50'S NOW? YOUNG FAMILIES? ALAN: WE'VE ALWAYS HAD AN ACTIVE CLIENTELE AND THERE IS A YOUTHFULNESS TO THAT BUT WE SEE MULTI-GENERALIZATION -- MULTIGENERATIONAL TRAVEL, THREE GENERATIONS. CAROL: I'M CURIOUS ABOUT THE ADMINISTRATION AND POLICIES AND HOW IT HAS MAYBE IMPACTED LABOR COST, FOOD COST, BUILDING COST, BECAUSE THESE ARE THINGS WE TALK ABOUT A LOT WHEN WE TALK ABOUT INFLATIONARY PRESSURES. ALAN: HAVEN'T REALLY HAD THE IMPACT IN OUR OPERATING COSTS YET. CAROL: EVEN LABOR COSTS? ARE YOU FINDING ALL OF THE WORKERS YOU WANT? ALAN: LABOR COSTS HAVE GONE UP, THAT'S BEEN A CHALLENGE MARKET TO MARKET. THAT'S BEEN HAPPENING THE LAST FEW YEARS. CAROL: SO IT CONTINUES. ALAN: IT HAS NOT STOPPED. CAROL: DOES THE PUSHBACK ON IMMIGRATION MAKE IT MORE TRICKY? ALAN: NO, FORTUNATELY WE'VE BEEN ABLE TO ATTRACT THE CREAM OF THE CROP IT SEEMS TO BE BUT WE KEEP A NIGHT TOWARD THE CHALLENGE OF FINDING GREAT ASSOCIATES. IT'S THE ESSENCE OF WHO WE ARE AS A COMPANY. TIM: BUT IN ALL PARTS OF THE RESORTS -- I'M TALKING KITCHEN, HOUSEKEEPING -- NO ISSUE? ALAN: IT'S MARKET TO MARKET, SOME MARKETS THERE ARE SCARCITY. TIM: WHERE IS IT SCARES? ALAN: SEASONAL RESORTS, WE RELY ON H-1B TO FILL IN THE GAPS. TIM: WILL YOU RELY ON THOSE VISAS WITH NEW RESTRICTIONS COMING INTO PLAY? ALAN: THE RESTRICTIONS ARE H-1B SET AND WE RELY ON H2. WE HAVE THREE GREAT SKI RESORTS, DEER VALLEY, PARK CITY AND BIG SKY AND WE'VE BEEN FILLING OUT OUR ROSTER BEAUTIFULLY. CAROL: IT'S INTERESTING BECAUSE I FEEL LIKE WHEN THERE IS PUSHBACK BY THE ADMINISTRATION AGAINST IMMIGRATION AND SOME OF THE CONSTRUCTION AND HOSPITALITY INDUSTRIES DID REACH OUT TO THE ADMINISTRATION, DO YOU FEEL LIKE YOU ARE BEING HEARD? ALAN: THERE'S A CONCERN WITH NEW DEVELOPMENT AND THE COSTS ASSOCIATED WITH BUILDING HOTELS AND WE HAVE 15 HOTELS TODAY BUT WE HAVE ANOTHER 15 IN VARIOUS STAGES OF DEVELOPMENT. SOME OF THOSE COSTS ARE STILL BEING PUT TOGETHER. THERE IS AN EYE TOWARD THAT IT'S UNPREDICTABLE IS THE BIGGEST CHALLENGE. WE DON'T KNOW EXACTLY WHERE IT'S HEADING. CAROL: WE ARE TALKING WITH THE FOUNDER, CHAIRMAN AND CEO OF MONTAGE INTERNATIONAL, LEXIE RESORTS AND HOTELS. WHAT ARE YOU BUILDING? YOU HAVE HOTELS, RESIDENCES, GOLF COURSES, CLUBS -- WHERE IS THE GROWTH? ALAN: WE'VE SEEN A LOT OF INTERNATIONAL GROWTH. IN MEXICO WE HAVE FOUR NEW PROJECTS IN DEVELOPMENT AND WE ARE OPENING IN MEXICO CITY NEXT YEAR AND THE YEAR AFTER WE HAVE TWO OPENING ELSEWHERE. CAROL: MEXICO CITY CAN OFTEN BE A TARGET FOR CONCERNS ABOUT SAFETY. WHAT WOULD YOU SAY ABOUT YOUR EXPERIENCE? ALAN: IT'S BEEN TERRIFIC. WE ARE DEVELOPING IN AN AREA OF TOWN THAT'S A BEAUTIFUL LOCATION, VERY EUROPEAN IN FEEL IN A MARKET THAT'S BEEN UNDERSERVED IN LUXURY HOTELS AND I THINK WE WILL DO WELL. GREAT DINING SCENE. IT WILL BE A GREAT ADDITION AND GREAT ENTRY FOR US INTO LATIN AMERICA. TIM: TELL US ABOUT A PLACE YOU'VE CONSIDER DEVELOPING AND CHOSE NOT TO AND WHY. WHY DID YOU PASS ON IT? ALAN: WE PASS ON DEVELOPING IN MARKETS WHERE WE DON'T THINK WE CAN GET THE RATE TO SUPPORT THE LEVELS OF SERVICES WE NEED TO PROVIDE. ONE OF THE BIGGEST DISCONNECTS LUXURY HOTEL BRANDS HAVE, THEY PUT HOTEL IN A MARKET THAT HAS A RATE CEILING NO MATTER WHAT MY AND YOU HAVE AN INHERENT DISCONNECT WHERE YOU HAVE AN UNHAPPY OWNER OF THE ASSET BECAUSE YOU CAN'T GET THE RETURNS YOU WANT, OR THE COMPANIES WILL REDUCE SERVICES. I WANT TO STAY TRUE TO MARKETS WHERE I BELIEVE A LUXURY TRAVELER WILL GO. TIM: IS THERE A BASE RATE IN U.S. DOLLARS THAT YOU HAVE TO HAVE FOR A PER NIGHT RATE? I KNOW IT DEPENDS ON WHERE WE ARE. ALAN: BROADLY SPEAKING, MONTAGE RUNS AN AVERAGE RATE NORTH OF $1200, $1300 PER NIGHT AND WE SHOULD BE ABLE TO GET $1000 -- $1100 FOR A MONTAGE. THERE ARE DIFFERENT COSTS. WE FACTOR IT INTO WHERE WE THINK THE HOTEL IS TODAY AND WHERE THE MARKET WILL BE HEADING. CAROL: THE LUXURY SPACE, I WAS LOOKING AT SOME OF THE STORIES -- THERE HAVE BEEN CONCERNS IN THE LUXURY RETAIL SPACE, THEY'VE BEEN UNDER PRESSURE. THE CHINESE CONSUMER HOLDING BACK. HERMES REPORTED THIS WEEK, AND WE HAD SOME ANALYSIS AND THERE WERE SIGNS FOR AN IMPROVED SECOND HALF. WHEN YOU CAN THE LUXURY SPACE, HEALTHY, NO SIGNS OF WEAKNESS? ALAN: WE SEE IT HEALTHY. SPEND ON THE PROPERTY, HOW GUESS ARE CONSUMING OUR SPAS AND FOOD AND BEVERAGE AND RESTAURANTS. WE HAVE AN AFFLUENT GUEST LOOKING FOR VALUE, LOOKING FOR GREAT SERVICES, GREAT PRODUCT OFFERING, AND THEY WILL PAY FOR IT. CAROL: WHAT DOES VALUE MEAN? TIM: FOR $1300 A NIGHT. ALAN: YOU ARE IN AN ENVIRONMENT WHERE -- I AM MADE TO FEEL SPECIAL. THE AMOUNT OF PEOPLE I'VE INTERACTED WITH, THEIR FOCUS ON MY LIKES AND DISLIKES, PERSONAL ATTENTION, THE LACK OF -- THE HUMAN TOUCH IS A BIG PART OF WHAT WE ARE OFFERING IN THAT RELATIONSHIP THAT WE STRIVE TO DEVELOP WITH GUESTS. TIM: ARE YOU TALKING AT ALL OR DEVELOPING AT ALL -- THIS WILL SOUND WEIRD, BUT DEVELOPING AT ALL FOR SOCIAL MEDIA? I WAS JUST AT A RESORT THAT UNDERWENT A $30 MILLION RENOVATION, THIS PART OF THE RESORT LOOKS DIFFERENT AND THE POOL OVERLOOKS THE CLIFFS AND I WAS LIKE THIS IS MADE FOR SOCIAL MEDIA, THEY WANT PEOPLE HERE TAKING PICTURES AND SHARING THIS ON SOCIAL MEDIA. ALAN: AS WE DESIGN HOTELS, IT DOES CROSS OUR MIND, WHAT A GREAT SPOT, A GREAT PHOTO, WE LOOK AT THAT. WE SEE HOW MUCH ENERGY IT CREATES AND EXCITEMENT. THAT IS VERY MUCH A REAL THING. THE ABILITY -- ONE OF THE THINGS THAT MADE LAUNCHING A HOTEL COMPANY FOR US IN THIS AGE, WHAT HELPED LEVEL THE PLAYING FIELD IS THE TRANSPARENCY THAT THE CONSUMER TODAY HAS, THEY CAN GO ONLINE AND SEE THE HOTEL. A LARGE CONGLOMERATE, LARGE COMPANY CAN SPEND A LOT MORE THAN WE CAN BUT WE GET THE UNFILTERED, UNBRIDLED RESPONSES OF REAL PEOPLE AND THAT HELPS. CAROL: CAN YOU GIVE US MORE COLOR ON HOLIDAY BOOKINGS? ALAN: VERY STRONG. FESTIVE THIS YEAR, I WAS TALKING TO OUR GENERAL MANAGER AT CABO. SOMETHING WE ARE EXCITED ABOUT. SKI DESTINATIONS LOOK STRONG. WE ARE OPTIMISTIC. TIM: OUR PEOPLE BOOKING TYPICALLY WITH THE SAME AMOUNT OF LEAD TIME, ARE THEY BOOKING LATER? ALAN: FOR THE HOLIDAYS THEY BOOK EARLIER BECAUSE WE FILL UP. WE ARE TRYING TO BOOK -- YOU TO REBOOK BEFORE YOU LEAVE BECAUSE AVAILABILITY IS THAT SPECIAL. HOLIDAYS ARE THE BEST FOR FAMILY TRADITIONS AND GREAT RESORTS ARE THE EMBODIMENT OF FAMILY TIME OVER HOLIDAYS. . . WE TARGET THAT VERY MUCH CAROL: YOU DON'T SEE ANY SIGNS OF RECESSION OR SLOWDOWN IN YOUR SPACE? OR? ALAN: I'M ALWAYS WORRIED, I WAKE UP EVERY DAY, IS THERE SOME THING IN THE WORLD THAT IS GOING TO PUT US ON TILT? BUT NO, I REMAIN OPTIMISTIC AND I LOOK AT THE SIGNS, THE PERFORMANCE OF OUR HOTELS AND I AM OPTIMISTIC. CAROL: THINGS LIKE THE RATE ENVIRONMENT IN TERMS OF THE BUILDOUT, YOU ARE OK WITH IT? ALAN: I DON'T HAVE A CHOICE. WE FOCUS ON DELIVERING EXTRAORDINARY SERVICE AND BEING A DIFFERENTIATED PRODUCT. LUXURY IS NOT A COMMODITY. IF WE CAN CONTINUE TO PERFORM AT LEVELS THAT ARE EXTRAORDINARILY HIGH, I THINK WE WILL CONTINUE TO WEATHER ECONOMIC CHALLENGES. TIM: YOU TOLD US YOU SPEND A LOT OF TIME AT ONE OF THE RESORTS, YOU LIVE AT ONE OF THE RESORTS. ALAN: I DO, LUNA BEACH, AND I SPEND TIME VIRTUALLY AT OUR OF OUR HOTELS THROUGH THE YEAR. TIM: WHICH IS YOUR FAVORITE? ALAN: THAT'S LIKE ASKING YOUR FAVORITE KID, AND THEY ARE LIKE OK, WHICH ONE? WE HAVE A CONSISTENCY OF PRODUCTS, ALL SEVEN MONTAGE HOTELS OR FIVE STARS, AND FORBES WHO GIVES OUT THE FIVE STARS CALLED ME TWO YEARS AGO AND SAID CONGRATULATIONS, YOU'RE THE ONLY HOTEL COMPANY IN THE WORLD WHERE EVERY HOTEL BRAND, EVERY HOTEL IS FIVE STARS AND THAT SPEAKS TO WHY I CAN'T PICK A FAVORITE BECAUSE THEY ARE AMAZING. CAROL: IT'S GREAT TO GET SOME TIME WITH YOU, IT'S BEEN A COUPLE YEARS. THANK YOU. ALAN FUERSTMAN JOINING US IN NEW YORK. TIM: HARVARD UNIVERSITY PRESIDENT ALAN GARBER HAS EMERGED AS A CHAMPION OF RESISTANCE TO PRESIDENT TRUMP AS THE WHITE HOUSE HAS DIRECTED A SERIES OF ATTACKS AGAINST HIM. HE RECENTLY TALKED WITH DAVID RUBENSTEIN FOR TONIGHT'S EPISODE OF THE DAVID RUBENSTEIN SHOW. HE ADDRESSED MANY TOPICS INCLUDING DISCRIMINATION WHEN IT COMES TO ADMISSIONS AND FOREIGN STUDENTS >> WE ANNOUNCED IN THE FIRST COMMUNICATION AFTER THE SUPREME COURT DECISION THAT WE WOULD ADHERE TO THE LAW AND NOT CHANGE VALUES AND PRINCIPLES BUT ADHERE TO THE LAW. WE'VE MADE SURE THAT IN THE ADMISSIONS PROCESS, NOBODY INVOLVED IN MAKING A DECISION ABOUT ADMISSIONS HAS ACCESS TO THE CHECK THE BOX, WHAT IS YOUR RACE, WHAT IS YOUR ETHNICITY, ETC.. OF COURSE THERE IS AN INTERVIEW AND ASPECT OF IDENTITY WILL COME OUT. WE DON'T PROVIDE THAT INFORMATION TO ADMISSIONS OFFICERS. I WOULD ADD WE TRAIN THEM TO MAKE SURE THEY DON'T AT THESE CHARACTERISTICS THAT ARE PROHIBITED. >> YOU TALK ABOUT IMMIGRANTS AND HOW MAJOR UNIVERSITIES HAVE BROUGHT IMMIGRANTS OVER AND THEY WERE GREAT FACULTY MEMBERS AND RESEARCHERS. WHAT ABOUT GETTING FOREIGN STUDENTS TODAY TO AMERICAN UNIVERSITIES? DO YOU ACTUALLY FEEL FOREIGN STUDENTS ARE AFRAID TO APPLY BECAUSE OF VISA PROBLEMS OR THEY THINK THEY WON'T GET IN BECAUSE THERE WILL BE DISCRIMINATION? HOW IS THE CONCERN IN WASHINGTON ABOUT FOREIGN STUDENTS AND FACULTY AFFECTED HARVARD? >> FROM ANY PROGRAMS THERE IS HESITANCY ABOUT ATTENDING COLLEGE OR GRADUATE SCHOOL IN THE U.S. BECAUSE OF UNCERTAINTY ABOUT VISA STATUS AND IF THAT CAN BE TAKEN AWAY. AT THE SAME TIME, THIS YEAR, WE'VE HAD A LOT OF SUCCESS AND THE STUDENTS ADMITTED FROM OTHER COUNTRIES, VIRTUALLY ALL OF THEM HAVE BEEN ABLE TO ATTEND. IT'S TOO EARLY TO HAVE A CONFIDENT ANSWER TO YOUR QUESTION BUT WE ARE WORRIED. I WANT TO SAY ONE OTHER THING -- THEY AREN'T TRIPLY SPEAKING STUDENTS, BUT POSTDOCTORAL FELLOWS WHO WORK IN OUR LABS, IN THE HOSPITALS AND IN OTHER PARTS OF THE UNIVERSITY, THERE IS EVIDENCE FEWER OF THEM ARE APPLYING FOR JOBS IN THE U.S.. CAROL: THAT WAS THE HARVARD UNIVERSITY PRESIDENT WITH DAVID RUBENSTEIN ON THE DAVID RUBENSTEIN SHOW. THAT AIRS TONIGHT AT 9:00 P.M. NEW YORK TIME ON BLOOMBERG TELEVISION. I WILL POINT OUT, IN THAT CONVERSATION, ALAN GARBER IS SAYING A LARGER TAX WILL HURT THE ABILITY TO ADDRESS PROBLEMS THE U.S. GOVERNMENT WANTS IT TO FOCUS ON. THEY DUG INTO THAT AND THERE HAVE BEEN A LOT OF ISSUES, REQUIREMENTS OR DEMANDS FROM THE WHITE HOUSE AND ADMINISTRATION ABOUT WHAT THEY. . WANT FROM LARGE UNIVERSITIES TIM: A NEW TAX WOULD REQUIRE SOME SCHOOLS WITH LARGE ENDOWMENTS TO PLAY A PERCENT OF INVESTMENT RETURNS, UP FROM 1.4%. -- PAY 8% OF INVESTMENT RETURNS, UP FROM 1.4%. AS YOU HURT, UNCERTAINTY AROUND VISAS FOR FOREIGN STUDENTS. CAROL: WE ARE HEADED INTO THE LAST HOUR OF TRADING, HEADED TO OUR TV COLLEAGUES IN A MOMENT. WE ARE LOOKING AT A MARKET WHERE WE ARE BOUNCING JUST OFF LOWS OF THE SESSION. DOWN ABOUT 50 POINTS ON THE S&P 500, DECLINE OF 7/10 OF ONE PERCENTAGE POINT. NASDAQ 100 THE LAGGARD, DOWN 1.3%, DECLINE OF 331 POINTS AND IF YOU LOOK AT THE S&P 500, MORE THAN 300 NAMES TO THE DOWNSIDE. TIM: CRYPTO IN THE RED, A PORTION OF THE MARKET, BITCOIN DOWN 2.6 PERCENT, EITHER DOWN 4%. CAROL: TESLA EARNINGS AFTER THE CLOSE AND WE WILL CHECK ON THE EARNINGS SEASON WITH SAM STOVALL AND THEN WE WILL DIG INTO WHAT MAYORS ARE UP TO AROUND THE COUNTRY. ♪
Netflix Earnings Worry, Google-Anthropic Talk Deal | Bloomberg Businessweek Daily 10/22/2025
Summary
Transcript
>> THIS IS "BLOOMBERG BUSINESSWEEK," REPORTING FROM THE GLOBAL MAGAZINE THAT HELPS LEADERS STAY AHEAD, WITH INSIGHT ON THE PEOPLE, COMPANIES AND TRENDS SHAPING THE COMPLEX ECONOMY, LESS GLOBAL BUSINESS, FINANCE AND TECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESSWEEK" DAILY WITH CAROL MASSAR AND TIM STENOVEC, LIVE ON BLOOMBERG RADIO, TELEVISION, YOUTUBE AND BLOOMBERG ORIGINALS. CAROL: WE ARE LIVE AT BLOOMBERG HEADQUARTERS IN NEW YORK CITY. WE HAVE SEEN US LIVE, THE MAG 7 WEIGHING ON TRADE, BUT WE'VE SEEN TRADE WARRIORS, U.S.-CHINA AND SOFTWARE AND ALL OF THAT WEIGHING ON THE EQUITY TRADE. TIM: AND GOLD AS WELL. THE NASDAQ COMPOSITE IS LIGHTING ONE POINT 7%, THE S&P 500 DOWN A FULL PERCENTAGE POINT. CAROL: AHEAD THIS HOUR, ALL IN ON THE TECH ECONOMY, EVERYTHING FROM THE NETFLIX'S APPOINTMENT AND META-JOB CUT S, TESLA'S EARNINGS TODAY, WE'VE LEFT OUT SOME STORIES BUT IT WILL BE A TECH DEEP DIVE. TIM: WE WILL BE JOINED BY TYE BRADY FROM AMAZON ROBOTICS, HE WILL BE TALKING ABOUT THE JOBS OF THE FUTURE AND WHO OR WHAT WILL GET THEM. CAROL: AND AS A U.S. EARNINGS .2 BEST CORPORATE RESULTS IN ABOUT FOUR YEARS, WE ARE REMINDED THE BROAD ER ECONOMY IS DOING OK. WE WILL SEE WHAT ONE COMPANY IS SEEING. TIM: FIRST, HERE IS ALEXIS IN FOR CHARLIE PELLETT. ALEXIS: STOCKS OFF THEIR WORST LEVELS OF THE DAY BUT STILL UNDER PRESSURE, ON CONCERNS THERE MAY BE MORE RESTRICTIONS REGARDING SOFTWARE WITH CHINA AND THE U.S., ACCORDING TO A REPORT FROM WRITERS. THE DOW JONES INDUSTRIAL AVERAGE IS DOWN AFTER YESTERDAY'S RECORD RUN WHEN IT BRIEFLY PASSED A 7000. S&P 500 DOWN 61, NASDAQ COMPOSITE SLIDING 300 65 POINTS. GOLD DOWN ANOTHER 1.3% AND CLOSER TO $4000 PER OUNCE. NETFLIX SAYS TAX DISPUTE IN BRAZIL TOOK A RIGHT OUT OF MARGINS LAST QUARTER BUT THE REST OF ITS RESULTS WERE PRETTY GOOD. THAT IS THANKS TO SOME BIG PERFORMERS LIKE HAPPY GILMORE AND ITS MOST POPULAR MOVIE EVER. THE STOCK HAS TRIPLED IN THE LAST TWO YEARS AND HIT A RECORD IN JUNE. THE NATIONAL HOCKEY LEAGUE HAS STRUCK MULTIYEAR DEALS TO BECOME THE FIRST MAJOR AMERICAN SPORTS LEAGUE TO INK A DEAL WITH THE PREDICTION MARKET PLATFORMS. STARTUPS HAVE THE RIGHT TO USE NHL LOGOS AND TRADEMARKS ON THEIR PLATFORMS AND WILL BENEFIT FROM PROMINENT ON-SCREEN EXPOSURE DURING NATIONAL BROADCASTS. STOCKS LOWER ACROSS THE BOARD WITH THE DOW OF 382 POINTS. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS WEBER YOU GET YOUR PODCASTS. CAROL: A BUSY WEDNESDAY. WE WILL START WITH SOME OF THE STORIES OUT OF THE TECH WORLD. IT FELT LIKE A BIG DUMP TODAY AND WE WILL GET TO ONE OF THE STORES ON THE TERMINAL, TALKS BETWEEN ANTHROPIC AND GOOGLE, NETFLIX QUARTERLY DISAPPOINTMENT, TESLA MADE A HEADLINE. TIM: TRUMP ADMINISTRATION CAN -- CONSIDERING BROAD STICTION'S ON EXPORTS OF SOFTWARE. ED LUDLOW JOINS US. WE HAVE A LOT TO GET TO. FIRST, THE HEADLINE, IT CROSSED JUST BEFORE 1:00 P.M. ON THE WEST COAST, TRUMP ADMINISTRATION CAN STRING BROADER EXPORTS TO CHINA. IS THIS A POSSIBLE HURDLE TO U.S. COMPANIES? ED: A HURDLE BUT A FAMILIAR PLAYBOOK BECAUSE THE ADMINISTRATION, PRIOR ADMINISTRATIONS HAVE USED THE MECHANISM OF EXPORT CONTROLS AND SPECIFIC PIECES OF SOFTWARE AGAINST RUSSIA, IN THE CONTEXT OF THE RESPONSE TO THE WAR IN UKRAINE. THAT MECHANISM AND HOW AMERICAN TECHNOLOGY COMPANIES MIGHT HAVE TO RESPOND TO IT, THERE IS A CASE STUDY TO LOOK AT. YOU WILL ALSO REMEMBER IN THE EARLIER DAYS OF THE BACK-AND-FORTH ON SEMICONDUCTORS AND THE CONTEXT OF EXPORT CONTROLS, BOTH SIDES LOOKED AT SOFTWARE USED TO DESIGN SEMICONDUCTORS AND CUTTING EACH OTHER OFF FROM THAT. AS A DOMAIN FOR CONFLICT AS ECONOMIC ADVERSARIES IT ISN'T THAT NEW BUT THE STEP BY THE WHITE HOUSE IS INTERESTING. CAROL: IS THE BACK-AND-FORTH BETWEEN THE U.S. AND CHINA, WE KNOW THAT SO WE HAVE TO WAIT AND SEE. IT SOUNDS LIKE A FIRST SHOT AND THERE WILL PROBABLY BE MORE AS TALKS CONTINUE. LET'S GET TO ANTHROPIC AND GOOGLE, THIS BROKE LATE YESTERDAY. AN EXCLUSIVE. WHAT DID YOU GUYS FIND OUT? ED: EARLY TALKS ABOUT A SPECIFIC ARRANGEMENT FOR CLOUD AND ANTHROPIC. THE CLOUD PART IS IMPORTANT BECAUSE GOOGLE THE COMPANY IS ALREADY AN INVESTOR IN ANTHROPIC. ANTHROPIC IS AN AI LAB THAT DESPERATELY NEEDS CAPACITY. WHAT ONE SOURCE TOLD ME IS THE CENTER OF THIS IS GOOGLES PROCESSING UNITS, IT'S CUSTOM AI CHIPS. ON PAPER THIS WOULD PRESENT A BIG DEAL WHERE GOOGLE SELLS WORKLOAD CAPACITY COMPUTING FOR AI TO A MAJOR PLAYER. THAT'S ALSO ALREADY CLOSELY ALIGNED TO AMAZON. YOU NOTICE THE DIRECTION OF THOSE TWO COMPANIES, AND THAT'S THE DYNAMIC. TIM: IS THERE SOMETHING TO BE SAID ABOUT GOOGLES GEMINI VERSUS ANTHROPIC'S CLAUDE, GOOGLE IS WORKING ON ITS OWN LLM MIGHT HELP US UNDERSTAND. ED: THERE'S A LOT WE DON'T KNOW ABOUT THIS DEAL. LIKE IS THIS GOOGLE MAKING AN INVESTMENT IN ANTHROPIC IN CASH? IS IT ANTHROPIC BUYING TENS OF BILLIONS OF DOLLARS -- THEY DON'T HAVE TENS OF BILLIONS OF DOLLARS. GOOGLE IS A MINI TENTACLED BEAST. GOOGLE ENCOMPASSES DEEP MIND AND ALL OF THE AI WORK THEY ARE DOING AND EVERY TIME NEW CAPACITY COMES ONLINE, TEAMS IN GOOGLE SITE I WANT THAT, GIVE ME THE CAPACITY FOR THE AI PROJECT I'M WORKING ON. BUT FOR GOOGLE CLOUD, THEIR JOB IS TO SELL CLOUD SERVICES TO THE OUTSIDE WORLD. WHEN THEY GET NEW CAPACITY THEY ARE LIKE WE WANT TO SELL THIS THEREIN LIES THE TENSION. WE'VE BEEN TRYING TO FIND OUT QUITE A LONG TIME BEYOND GOOGLE IN-HOUSE, WHO WILL BE USING THE TPU AS THE UNDERLYING TRAINING FOR AI MODELS. CAROL: THE STORY, GREAT EXCLUSIVE BY YOU GUYS, BUT LIKE YOU SAID, THERE ARE STILL DETAILS WE DON'T KNOW AND QUESTIONS TO BE ASKED, BUT IT FEELS LIKE THERE ARE KEY PLAYERS IN THIS SPACE. WE KNOW WHO THEY ARE, YOU REPORT THEM OUT NONSTOP, THAT ARE RACING TO MAKE SURE THEY ARE NOT MISSING OUT ON HOWEVER AI INS UP SETTLING IN OUR SOCIETY. IT FEELS INCREASINGLY EVERYDAY -- AGAIN, STRANGE RELATIONSHIPS AND WE TALK ABOUT CIRCULAR FINANCING -- THERE HAS TO BE SOME FALLOUT, PEOPLE THROWING SO MUCH MONEY AND ATTENTION AND TIME. OR MAYBE NOT? ED: THE IDEA AROUND CIRCULAR FINANCING WOULD BE PUSHED BACK BY THESE COMPANIES BECAUSE THEY WILL SAY WHOEVER WE GIVE MONEY TO THERE IS ABSOLUTELY NO CONTRACTUAL REQUIREMENT YOU USE ON TECHNOLOGY. WE WILL GIVE YOU MONEY BUT YOU CAN USE ANYONE'S TECHNOLOGY. THAT'S PART ONE. PART TWO IS START FROM A PLACE WHERE YOU HAVE TO ACCEPT THE INDUSTRY IS SUPPLY CONSTRAINED. THE DEMAND FOR COMPUTING CAPACITY FOR AI MODELS, TO TRAIN NEW MODELS OR NEW GENERATION MODELS OR JUST RUN THE ONES THAT EXIST, THERE ISN'T ENOUGH CAPACITY. THE PROBLEM RIGHT NOW AND WHERE OUR NEWSROOM IS LOOKING MORE BROADLY, THERE ISN'T ENOUGH CONCRETE OR SKILLED LABOR OR POWER TO BUILD ANY OF THESE DATA CENTERS ANYWAY. WE'VE GOT A REAL PROBLEM. IF YOU ACCEPT THAT STARTING POINT, WE HAVE THIS CONSTANT DELUGE OF HEADLINES, IT'S EASIER TO UNDERSTAND. TIM: WE SPENT A LOT OF OUR EDITORIAL CALL TODAY TALKING ABOUT POWER AND THE QUESTION OF POWER AND THERE MIGHT NOT BE ENOUGH POWER IN OUR LIFETIMES TO PROVIDE ELECTRICITY TO WHAT THESE COMPANIES WANT TO DO. ED: SIMPLY PUT, THE UTILITIES, THE GRADE, CANNOT SUPPLY THE ELECTRICITY TO THOSE DATA CENTER PROJECTS ONLY ON PAPER CURRENTLY AND NOT YET BUILT. THE UTILITIES CANNOT GET THE ELECTRICITY BECAUSE THE POWER GENERATION INDUSTRY ISN'T GENERATING ELECTRICITY AT THAT SCALE. THAT'S WHY WE ARE TALKING ABOUT THE FUTURE DEALS FOR NUCLEAR POWER AND ALTERNATIVE SOURCES OF ENERGY AND THE U.S. IS FIXATED ON THE SPEED OF WHICH CHINA BRINGS NEW SOURCES OF A CITY ONLINE. AGAIN, COMPUTE CAPACITY DEALS, DATA CENTERS -- THEY OPERATE IN THE FUTURE, BUT ALL THE THINGS NEEDED TO SUPPORT THEM ARE BASED ON FUTURE AGREEMENTS AS WELL. CAROL: I DO THINK ABOUT THE SUPPLY CHAIN. YOU WILL NEED POWER TO COOL THE DATA CENTERS. THERE IS A VICIOUS CYCLE THAT WILL BE A HUGE DRAWDOWN. I WAS TALKING TO MY BROTHERS THIS WEEKEND ABOUT SMALL MODULAR REACTORS IN TERMS OF NUCLEAR, BUT YOU BRING THEM UP WITH ANYBODY AND THEY ARE 10 TO 15 YEARS OUT. TIM: SOUND GREAT BUT WE HAVEN'T SEEN THE TECH PROVEN IN THE U.S. CAROL: I WONDER HOW WE WILL POWER ALL OF THIS AND IT IS ALREADY A SUPPLY CONSTRAINT ON THE AI BUILDOUT. ED: TO BRING IT BACK TO ANTHROPIC AND GOOGLE AND TPU'S, IF YOU ARE A DATA CENTER BUILDER AND YOUR BUILDING THE BUILDING, YOU ARE A -- OR YOU ARE A NE-YO CLOUD, RIGHT NOW IT IS ONE OF THE OTHER SITUATION. EVERYONE WANTS TO USE NVIDIA CHIPS THAT EXIST. YOU CAN'T DO BOTH, THERE ISN'T ELECTRICITY FOR BOTH THE RIGHT NOW EVERYONE IS FOCUSED ON PRIORITIZING THE NVIDIA CAPACITY. WHEN WE BREAK A STORY LIKE THIS BASED ON A DEAL FOR TP USE, THE SUPPLY CHAIN READS THE STORY AND GOES I DON'T HAVE ELECTRICITY FOR THAT YET. THAT'S THE REACTION WE'VE HAD TO OUR REPORTING. I DON'T KNOW WHAT'S GOING TO HAPPEN. CAROL: TBD AS WE SAY A LOT HERE ON AI. ANOTHER STORY RELATED TO GOOGLE AND PLAYS INTO SOMETHING, WE WILL CATCH UP WITH THE MAYOR OF CHATTANOOGA, TENNESSEE, THEY HAVE BEEN BUILDING OUT A QUANTUM NETWORK IN PARTNERSHIP WITH OTHER COMPANIES. THERE IS A STORY ALSO OUT INVOLVING GOOGLE RUNNING AN ALGORITHM ON ITS WILLOW CAN'T -- QUANTUM COMPUTING CHIP. IT'S SAID TO BE A BREAKTHROUGH. WHAT DO WE NEED TO KNOW? ED: WHEN THE NEWS BROKE IN THAT MOMENT, ALPHABET SHARES HAD PARED NOTABLE DECLINE AND JUMPED UP 2%. WANT HIM COMPUTING IS A DIFFERENT TECHNOLOGY TO ACCELERATED OR SUPERCOMPUTING. THE UNDERLYING CODE BASE IS COMPLETELY DIFFERENT. ONE IS QUANTUM MECHANICS AND THE OTHER IS JUST ONES AND ZEROS. THE PERFORMANCE OF THE QUANTUM COMPUTER IS 13,000 TIMES THAT OF A SUPERCOMPUTER. THE REASON THAT MILESTONE MOVES US FORWARD IS YOU CAN START TO SAY OK, WE'VE PROVEN A SCIENTIFIC THEORY THIS TECHNOLOGY CAN BE USED IN THIS USE CASE AND DO SO BETTER THAN THE EXISTING TECHNOLOGY WE HAVE IN THE REAL WORLD TODAY. THAT'S THE STORY AND IT MOVED THE NEEDLE IN THAT MOMENT. CAROL: BUT USEFUL APPLICATIONS OF QUANTUM TECHNOLOGY WITHIN FIVE YEARS. TIM: WHAT WOULD USEFUL APPLICATION BE? ED: BASICALLY -- YOU WOULD WANT TO RUN SIMULATION OR INFINITE NUMBER OF MATHEMATICAL CALCULATIONS TO RUN SCENARIOS ON, FOR EXAMPLE, DRUGS. CAROL: I WAS SINGING HEALTH CARE. -- WAS THINKING HEALTH CARE. ED: IF YOU TAKE THE PROCESS OF WRINGING A DRUG TO MARKET BEYOND HUMAN STUDY, THE BEST WAY TO SIMULATE FOR EVERY POSSIBLE OUTCOME IS TO DO IT MATHEMATICALLY. BILLIONS AND BILLIONS OF PARAMETERS AND THAT TAKES TIME. IT'S NOT INSTANTANEOUS BUT THE QUANTUM COMPUTER CAN DO THAT. CALCULATE BEYOND THE PARAMETERS OF THE SUPERCOMPUTER. TIM: WE TOLD YOU THERE'S A LOT TO GET TO. WE ARE SPEAKING WITH ED LUDLOW FROM A BLOOMBERG ATTACK --TECH. META-PLATFORMS. I THINK THIS WAS SURPRISING FOR A LOT OF PEOPLE TO READ, CUTTING 600 JOBS FROM THE AI UNIT, THE SUPER INTELLIGENCE LAB AND AIMING TO MOVE QUICKLY IN THE COMPETITIVE AI RACE. HOW SHOULD INVESTORS READ THIS? ALEXANDER WANG SAYS THIS IS A GOOD THING, WE CAN MAKE DECISIONS MORE QUICKLY. CAROL: SOUNDS LIKE A MANAGER. [LAUGHTER] TIM: A VERY WEALTHY MANAGER. ED: I DON'T KNOW IF OUR MANAGERS ARE LISTENING. CAROL: OTHER MANAGERS. ED: THE ARGUMENT META MAKES IS FEWER PEOPLE IN THE PROCESS RESULTS IN QUICKER DECISIONS. MARK ZUCKERBERG HAS ALWAYS HAVE THE IDEA THAT UNDER THE STRUCTURE OF META, THERE'S A GROUP OF I THINK HE SAID 25 TO 30 PEOPLE UNDER HIM THAT CONSTANTLY TALK WITH EACH OTHER AND GET STUFF DONE AND EACH KNOWS WHAT'S HAPPENING ON EACH SIDE OF THE BUSINESS. BUT TO THE POINT OF WHY IT SURPRISING, THE HEADLINES FOR MOST OF THE YEAR HAVE BEEN ABOUT META PAYING HUNDREDS OF MILLIONS OF DOLLARS IN COMP TO BRING IN TALENT FROM OTHER COMPANIES. THEY ARE SAYING BOTH, WE ARE CUTTING SOME OF THE TEAM WE GREW AGGRESSIVELY AND SPENT A LOT OF MONEY ON BUT THEY BELIEVED THERE WERE TOO MANY PEOPLE AND HAVING A STREAMLINED APPROACH ON THE AI TEAM WILL RESULT IN SHIPPING PRODUCTS BASICALLY. CAROL: I DO LIKE STREAMLINED MANAGEMENT, I WON'T ARGUE WITH THAT, I LIKE BEING DIRECT AND KNOWING WHO TO GO TO TO GET AN ANSWER QUICKLY, WHICH IS WHAT WE HAVE. [LAUGHTER] LET'S TALK ABOUT EARNINGS, NETFLIX LAST NIGHT AND TESLA AFTER THE CLOSE TODAY. WHAT ABOUT NETFLIX 24 HOURS LATER AND WHAT ARE YOU WATCHING FOR TESLA? ED: NETFLIX, INVESTORS ARE SPOOKED BY AN ACCOUNTING ISSUE, A TAX DISPUTE FROM A PRIOR FINANCIAL YEAR WITH THE BRAZIL THAT IMPACTED FINANCIALS. THE BIGGER PICTURE STORY FOR NETFLIX HAS BEEN THEY BEEN ABLE TO GENERATE REALLY IMPRESSIVE FREE CASH FLOW WHILE ALSO HAVING A STRONG CONTENT SLATE. THE BUSINESS MODEL FOR STREAMING ALWAYS IN WESTERN, IF CONTENT IS KING AND YOU NEED THE BEST CONTENT, HOW CAN YOU DO THAT PROFITABLY? THE STOCK IS DOWN THE MOST SINCE APRIL 2022 BUT A LOT OF THE STREET ARE CHEERING THE ABILITY TO DO THAT, HAVE AMAZING SHOWS AND CONTENT WITH MORE TO COME AND STILL HAVE REALLY IMPRESSIVE TRADITIONAL FINANCIAL METRICS, WHICH NETFLIX HAS BEEN CALLING ON WALL STREET A LONG TIME TO SAY JUDGES BY THESE AND NOT SUBSCRIBER COUNT. TIM: I WANT TO DO MORE NETFLIX BUT WE SHOULD HIT TESLA BECAUSE THEY ARE REPORTING AFTER THE BELL TODAY. WE GOT GOOD NUMBERS FROM TESLA OF LATE, RECORD DELIVERIES. WE KNOW THAT AS OF NOW. WHAT'S THE BIG QUESTION YOU HAVE? ED: IT'S REALLY SIMPLE, SHORT-TERM AND LONG-TERM. IN THE QUARTER GONE THEY DID ALMOST 500,000 EV DELIVERIES. A LOT OF THAT WAS CONSUMERS RUSHING TO BUY TESLA BEFORE THE FEDERAL TAX CREDIT WENT AWAY. ON NOVEMBER 6, VOTERS WILL VOTE ON ELON MUSK'S COMPENSATION PACKAGE. ONE OF THE GOAL SET TO HIM WAS TO DELIVER 20 MILLION VEHICLES IN THE 10 YEAR PERIOD, I'M NOT GREAT AT MATH BUT THAT MEANS 500,000 PER QUARTER. IF THAT QUARTER JUST GONE WAS AN ANOMALY, HIGH BECAUSE OF PEOPLE RUSHING TO TAKE ADVANTAGE OF A CREDIT THAT IS NO LONGER THERE, CAN THEY EXPLAIN HOW THEY WILL ACHIEVE THAT OVER THE NEXT 10 YEARS EVEN THOUGH THEY WILL TELL US AI AND ROBOTICS IS THE FOCUS? TIM: YOU KNOW HOW WE KNOW HE'S BEEN LIVING IN THE U.S. A LONG TIME, HE SAID MATH INSTEAD OF MATHS THEM WHEN DID YOU SWITCH? ED: WHEN MY WIFE GOT ME FOR SAYING ROUT INSTEAD OFROUTE. ELEVATOR. [LAUGHTER] CAROL: THAT DIDN'T SOUND RIGHT. ED LUDLOW AROUND THE WORLD, THE MASSIVE WORLD THAT IS TECHNOLOGY, COVERING IT ALL. WE WILL TALK TO HIM LATER WHEN TESLA REPORTS. THAT IS ED LUDLOW, CATCH HIM AND CAROLINE HYDE 11:00 A.M. WALL STREET TIME MONDAY THROUGH FRIDAY. WE WILL STAY IN THE TECH UNIVERSE. ROBOTICS IS GETTING A LOT OF ATTENTION. WE HAVE AMAZON'S CHIEF TECHNOLOGIST BACK WITH US. SO MANY QUESTIONS. ALEXIS: I AM ALEXIS CHRISTOPHERSON. A MOMENTUM TRADE UNWIND, MEGA CAPS LEADING THE SELLOFF, REPORT SEEING THE TRUMP ADMINISTRATION IS WEIGHING RESTRICTIONS ON SOFTWARE EXPORTS TO CHINA, ADDING TWO LINGERING WORRIES ABOUT U.S.-CHINA TRADE RELATIONS. THE DOW IS DOWN, THE S&P 500 DOWN 55, THE NASDAQ OFF 337, A LOSS OF 1.5%, NASDAQ 100 ALSO DOWN 1.5%. TESLA IN THE SPOTLIGHT, EARNINGS DO AFTER THE CLOSE, ANALYSTS EXPECTING A DECREASE IN ADJUSTED EARNINGS FROM THE PREVIOUS YEAR DESPITE RECORD VEHICLE SALES. TESLA IS ALSO RECALLING ABOUT 13,000 EV'S OVER AN ISSUE THAT COULD CAUSE A SUDDEN LOSS OF BATTERY POWER, INCREASING THE RISK OF A CRASH. AHEAD OF EARNINGS, TESLA DOWN 2%. SHARES OF A THERAPEUTICS COMPANIES, ONE OF THE BIGGEST LOSERS ON THE NASDAQ TODAY AFTER THE BIOTECH'S EXPERIMENTAL THERAPY FOR CYSTIC FIBROSIS SHOWED NO IMPROVEMENT IN PATIENTS. THEY ARE ALSO DISCLOSING A SERIOUS ADVERSE EVENT IN ONE PATIENT. THE STOCK DOWN 53%. SHARES OF APPLE UNDER PRESSURE TODAY AFTER ITS IPHONE AIR WAS MET WITH A TEPID DEMAND IN CHINA. THE NIKKEI REPORTING APPLE DRASTICALLY CUT ITS OWNERS -- ORDERS FOR THAT. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. THAT'S A BLOOMBERG BUSINESS FLASH. CAROL: THANK YOU. THOMAS BLACK RECENTLY WROTE AN OPINION PIECE AND TALKED ABOUT THE HYPE AROUND HUMANOID ROBOTS BEING HIGH WITH FORECAST OF NEARLY ONE BILLION HUMANOIDS AND SERVICE BY 2050 BUT THE REALITY IS, MOST PEOPLE OVERESTIMATE WHAT ROBOTS CAN DO AT THIS POINT THEIR DEVELOPMENT. ONE COMPANY USING ROBOTS A LOT AND FOR A LONG TIME AND HAS DEPLOYED ITS ONE MILLIONTH ROBOT HAPPENS TO BE ONE OF THE WORLDS ARE JUST MARKET CAP COMPANIES AND A HOUSEHOLD NAME. WE WANTED TO CHECK IN WITH TYE BRADY, CHIEF TECHNOLOGIST AT AMAZON ROBOTICS. HE JOINS US FROM THE AMAZON DELIVERING THE FUTURE EVENT FROM THE DELIVERY STATION IN CALIFORNIA. WE KIND OF WANT TO FIND OUT WHERE THEY ARE IN TERMS OF THE WORLD OF ROBOTICS. WE LOVE TO TALKING TO YOU LAST TIME SO SO GLAD TO CHECK IN AGAIN. THIS EVENT WHERE YOU ARE, RIGHT NOW I JUST SEE A CURTAIN BUT I ASSUME THERE'S LOTS OF STUFF HAPPENING. WHO IS THERE, WHAT IS GOING ON, TELL US ABOUT IT. TYE: THANK YOU FOR HAVING ME, I APPRECIATE THAT AND I ENJOYED OUR CONVERSATION AS WELL. IT'S GREAT TO BE HERE. OUR FOURTH DELIVERING THE FUTURE EVENT HERE AND THERE'S A BUNCH OF PRESS AND WE'VE MADE SOME BIG ANNOUNCEMENTS IN ROBOTICS TODAY. CAROL: CAN YOU TELL US ABOUT THEM? [LAUGHTER] TYE: THE FIRST IS IN OUR MANIPULATION WROTE UP WE CALL -- MANIPULATION WR ROBOT CALLED BLUE JAY, IT HELPS ELIMINATE THE MENIAL, MUNDANE AND REPETITIVE AND CAN PICK MORE THAN 75% OF THE INVENTORY WE SELL IN OUR SORTABLE NETWORK WHICH IS A BIG DEAL. SOMETHING INTERESTING ABOUT BLUE JAY AS WELL, COMPARED TO OUR OTHER BIRD MANIPULATION SYSTEMS -- CARDINAL, SPARROW AND ROBIN -- IT TOOK US ABOUT THREE YEARS TO DESIGN, DEPLOY AND GET TO FRONTLINE EMPLOYEES, WE'VE DONE BLUE JAY WITH THE POWER OF AI IN JUST OVER A YEAR. THAT'S THE PACE OF INNOVATION. TIM: A LOT OF PEOPLE THINK ABOUT AMAZON AND ROBOTS, I WANT TO JUMP IN BECAUSE WE DON'T HAVE A TON OF TIME, THEY THINK OF THE BIG ACQUISITION, IN 2012 IT WAS A BIG ACQUISITION FOR AMAZON. THEY'VE SEEN PICTURES OF HOW THEY CAN MOVE LARGE LOADS OF THINGS ACROSS WAREHOUSES. BUT IF YOU'RE GOING TO A STATE-OF-THE-ART AMAZON WAREHOUSE TODAY, WHAT WOULD YOU SEE IN ADDITION TO THOSE ROBOTS? TYE: IN ADDITION TO THE WORLD'S FIRST GOODS TO PERSON FULFILLMENT STRATEGY, WHICH WAS A REALLY GOOD IDEA, WE HAVE MORE THAN A MILLION ROBOTS WE MANUFACTURE IN MASSACHUSETTS DOING THAT JOB EVERY DAY, YOU WILL SEE MORE OF THE UNSTRUCTURED FIELDS. YOU WILL SEE A ROBOT CALLED PRODUCE THAT CAN MOVE BIG CARGOES OF PACKAGES TO THE RIGHT DOCK AT THE RIGHT TIME. YOU WILL SEE MANY MORE MANIPULATION SYSTEMS ELIMINATING REPETITIVE MOTIONS, NO ONE WANTS TO LIFT A 50 POUND BOX ALL DAY. ROBIN AND CARDINAL DO THAT, MOVING INTO SOME OF THESE CARTS WE HAVE. YOU WILL SEE MUCH MORE COLLABORATIVE ROBOTICS. THAT'S WHERE WE BUILD ROBOTICS SYSTEMS TO ENABLE PEOPLE TO AUGMENT WHAT PEOPLE ARE CAPABLE OF AND WE BELIEVE IN THE PHILOSOPHY OF PEOPLE AND MACHINES WORKING TOGETHER. HOW CAN WE BUILD A TOOLSET THAT ENABLES EMPLOYEES TO DO THEIR JOB NOT ONLY MORE EFFICIENTLY BUT ALSO WITH BETTER SAFETY IN MIND? CAROL: THE ROBOT ARMY CALLED BLUE JAY -- ARM CALLED BLUE JAY YOU TALKED ABOUT, AND YOU'RE ALSO WORKING WITH AUGMENTED REALITY LOSSES TO BE WORN BY DRIVERS IN DELIVERY TRUCKS IN THE FIELD. THERE IS SO MUCH GOING ON. STEP BACK FOR A MOMENT BECAUSE YOU HAVE A LOT OF DATA, YOU LOOK AT WHAT YOU ARE DOING. INVESTORS THINKING ABOUT AMAZON AND WHAT YOU ARE DOING, HOW DO THEY THINK ABOUT THE LONG-TERM ROI, RETURN ON INVESTMENT IT COMES TO THE INVESTMENT IN ROBOTS? IS THE GO LABOR EFFICIENCY, THROUGHPUT SPEED, MARGIN EXPANSION ACROSS FULFILLMENT OPERATIONS, WHAT IS IT? TYE: DEFINITELY EFFICIENCY. WE THINK ABOUT EFFICIENCY AND HOW TO GAIN EFFICIENCY THROUGH THE CHAIN OF OUR FULFILLMENT PROCESSES. YOU MENTIONED DATA AND DATA IS THE FUEL FOR AI SYSTEMS. DATA HAS ALLOWED US TO BRING -- THINK OF THE BODY OF ROBOTICS BUT BRING THE MIND TO ROBOTICS. MORE ADAPTABLE AND FLUID. YOU CAN ALMOST THINK ABOUT THE ABILITY TO POUR ROBOTICS INTO ANY SIZE OR SCALE OF BUILDING TO AMPLIFY WHAT OUR EMPLOYEES ARE ALREADY DOING. WE WANT TO GIVE THEM AN AMAZING TOOLSET. WHEN WE DO THAT WE ARE MORE PRODUCTIVE. WHEN YOU DO ROBOTS WRITE, WHEN YOU DO COLLABORATIVE ROBOTS, PEOPLE AND MACHINES DOING WHAT THEY DO BEST -- AND THEY DO DIFFERENT THINGS BETTER -- YOU ARE MORE PRODUCTIVE, AND THAT ALLOWS YOU TO INVEST MORE IN PEOPLE, WE HAVE SKILLED MORE THAN 700,000 EMPLOYEES. AND ALSO IN ROBOTICS, WE'VE EXPANDED FROM JUST A MOVEMENT SOLUTION TO MOVEMENT AND MOBILITY AND SORTING AND STORAGE AND PER SEPTAGE -- PERCEPTION AND PACKAGING THAT CHANGES THE GAME FOR OUR CUSTOMERS. CAROL: WILL YOU NEED LESS WORKERS -- I HAVE TO BRING IT UP. THE TIMES HAD A STORY, TALKED ABOUT INTERVIEWS AND A CACHE OF INTERNAL DOCUMENTS THAT THEY SAW THAT EXECUTIVES THINK THE COMPANY IS ON THE CUSP OF ITS NEXT BIG WORKPLACE SHIFT AND REPLACING HAVE A MILLION JOBS WITH ROBOTS. WE KNOW THINGS CHANGE, I GET IT, I DON'T GET IT TIMES OF FAXES OR PIECES OF PHYSICAL MAIL, THANK GOD. HAVING SAID THAT, DO YOU BELIEVE YOU ARE ON THE CUSP OF A WORKPLACE SHIFT AND YOU WON'T NEED AS MANY WORKERS BECAUSE OF THE ADVANCEMENTS IN ROBOTICS? TYE: THERE'S NO DOUBT THINGS CHANGE. WE ARE PROUD OF THAT AT AMAZON, WE AVOID STASIS AT ALL COSTS. WE CHANGE AND ADAPT AND THE NATURE OF TASKS CHANGE, NO DOUBT ABOUT THAT. WE ARE LASER FOCUSED ON EFFICIENCIES. THAT ARTICLE WAS SPECULATING 10 YEARS OUT. IT'S HARD TO SAY WHAT WILL HAPPEN IN THE NEXT 10 YEARS BUT I CAN TELL YOU ABOUT THE LAST 10 YEARS. THE LAST 10 YEARS, WE SERIOUSLY INVESTED IN ROBOTICS, WE CREATED HUNDREDS OF THOUSANDS OF NEW JOBS AND NEW JOB TYPES AND THERE'S NO EMPLOYER IN THE UNITED STATES THAT HAS EMPLOYED MORE PEOPLE THAN AMAZON. IN 10 YEARS. THAT'S THE POWER OF EFFICIENCIES AND BUILDING ROBOTS IN A WAY THAT AUGMENTS HUMAN POTENTIAL. CAROL: MIGHT BROTHER SAYS I'M LIKE A DOG WITH A BONE. SO 10 YEARS OUT IT COULD BE LESS JOBS OR YOU DON'T KNOW? TYE: THERE ARE JOBS AND THERE ARE TASKS. WE ARE CHANGING TO MAKE SURE TASKS -- I'M BULLISH ON ELIMINATING EVERY MUNDANE AND REPETITIVE JOB, NOBODY WANTS TO DO THAT. WE WILL CHANGE THOSE TASKS 100%. AS HISTORY HAS SHOWN, WE CONTINUE TO CREATE JOBS. WE HAVE A GOAL OF TWO THINGS -- CAN YOU BE MORE PRODUCTIVE, WHICH MEANS MORE EFFICIENCY, AND CAN YOU CREATE A SAFER ENVIRONMENT FOR EMPLOYEES AND WE ARE DOING BOTH. THAT'S WHAT HISTORY HAS SHOWN. OTHER THAN 30% REDUCTION IN OUR OVERALL RECORDABLE ENTRY RATE BECAUSE OF ROBOTICS AND MUCH MORE EFFICIENT. OUR LATEST GENERATION FULFILLMENT CENTER ENTRY POINT IS 25% MORE EFFICIENT. YOU'VE GOT TO BUILD YOUR ROBOTICS IN A RIGHT WAY. TIM: WERE SPEAKING WITH THE CHIEF OF AMAZON ROBOTICS. WHEN YOU THINK ABOUT HIRING FOR SEASONAL EVENTS, I'M WONDERING HOW YOU'RE PUTTING PENCIL TO PAPER AND TO WHAT EXTENT AUTOMATION HAS REDUCED DEPENDENCY ON SEASONAL OR HOURLY LABOR. WHAT WILL THAT LOOK LIKE THIS YEAR OR NEXT YEAR? TYE: THE SAME PHILOSOPHY OF EMPOWERING PLOYS WHETHER THEY ARE TEMPORARY OR FULL-TIME EMPLOYEES WITH THE WORLD'S BEST MACHINES THAT HELP THEM DO THEIR JOB. I'M PROUD OF THE FACT THAT THIS YEAR FOR MORE THAN 250,000 TEMPORARY JOBS FOR EMPLOYEES TO COME IN DURING THE HOLIDAY SEASON, THOSE ARE GOOD PAYING JOBS AND I'M HAPPY ABOUT THAT. AND REALLY PLEASED WITH WORK MEN AND WOMEN HAVE DONE IN THE ROBOTICS FIELD, PIONEERING PHYSICAL AI SYSTEMS THAT HELP THEM DO THEIR JOBS BETTER. CAROL: ONE THING I'VE BEEN THINKING A LOT ABOUT IS WHAT'S GOING ON OVERSEAS, WHETHER IT'S CHINA OR JAPAN. WE'VE DONE SOME REPORTING ABOUT SERVICE INDUSTRIES IN JAPAN THAT ARE LEADING INCREASINGLY IN ROBOTICS, HAVE YOU BEEN OVER THERE AND I'M CURIOUS IF YOU'RE SEEING THINGS THAT ARE PRETTY IMPRESSIVE AND THE U.S. AS A CREATOR OF THINGS OR ITS ROLE IN THE ROBOTICS INDUSTRY HAS TO KEEP A WATCH ON WHAT'S GOING ON IN OTHER COUNTRIES? TYE: I THINK IT'S EASY, ESPECIALLY IN ROBOTICS, TO GET DISTRACTED ABOUT WHAT OTHER PEOPLE ARE DOING. I THINK ANYBODY CAN MAKE A YOUTUBE VIDEO AND POP IN AND OVERFLIGHT SOMETHING. IF YOU COME INTO OUR WORLD, IT'S ALL ABOUT APPLICATION. OUR WORLD IS ABOUT THE REALITY -- CAROL: WE ARE TALKING WITHTYE BRADY AT AMAZON. OF COURSE OUR SHOT FROZE AND THAT IS THE WORLD OF TECHNOLOGY. STUFF HAPPENS. WE HOPE WE CAN GET HIM BACK TO FINISH UP THE CONVERSATION. TIM: MAYBE THE ROBOTS ARE USING ALL THE WI-FI. [LAUGHTER] THAT IS A CONDUCTIVITY THING THOUGH. RESOURCES. CAROL: YOU HAVE TO CHARGE THESE PUPPIES. TIM: WE NEED RECHARGING,TOO. CAROL: FOOD AND SLEEP. DO WE HAVE TYE BACK FOR 20 SECONDS? FORGIVE US -- FINAL THOUGHTS. TYE: SORRY ABOUT THAT. I'M READY FOR YOU. CAROL: FINAL THOUGHTS FOR OUR AUDIENCE? TYE: FINAL THOUGHTS, ROBOTICS WIND ON THE RIGHT WAY, WHEN YOU REFRAIN THE RELATIONSHIP WITH MACHINES, YOU ENABLE MORE PRODUCTIVITY, CREATE GREATER EFFICIENCIES IN A SAFER ENVIRONMENT FOR EMPLOYEES. THIS COLLABORATIVE MINDSET WE'VE DONE FOR THE LAST 10 YEARS REALLY DOES MAKE A DIFFERENCE. ♪ ALEXIS: STOCKS UNDER PRESSURE ON RENEWED CONCERNS ABOUT U.S.-CHINA TRADE RELATIONS. WRITERS REPORTING THE WHITE HOUSE IS WEIGHING CURBS ON EXPORTS TO CHINA MADE WITH U.S. SOFTWARE. SOURCES REPORTEDLY SAY THE PLAN IS JUST ONE OF THE OPTIONS BEING CONSIDERED AND MIGHT NOT HAPPEN. EVEN SO WE HAVE THE DOW INDUSTRIALS DOWN 374 POINTS, THE S&P 500 DOWN 54, NASDAQ OFF 325 POINTS, A LOSS OF 1.4%. TEXAS INSTRUMENTS LEADING THE SHELL OFF IN -- SELLOFF TODAY AFTER WEAKER THAN EXPECTED RESULTS. SHARES OF TEXAS INSTRUMENTS DOWN 7.6%, LEADING OTHER CHIP STOCKS LOWER AS WELL. AMD DOWN 4.5%, MICRON TECHNOLOGY OFF MORE THAN 3%. AT&T SAYS IT ADDED MORE MOBILE PHONE AND HOME INTERNET SUBSCRIBERS AND ANALYSTS EXPECTED LAST QUARTER BUT PRICEY MOBILE PROMOTIONS TO WIN OVER NEW CUSTOMERS WEIGHED ON REVENUE. SHARES AND DOWN 2.4%. THE NEW YORK GIANTS HAVE A NEW CO-OWNER, THEY OWN A 10% STAKE, VALUING THE GIANTS AT $10.3 BILLION. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBED TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. THAT IS YOUR BLOOMBERG BUSINESS FLASH. BACK OVER TO CAROL AND TIM. CAROL: THANK YOU. JUST PULLING UP TAKING A LOOK AT HILTON WORLDWIDE, STOCKS AS MUCH AS 5% UP TODAY. AMONG THE TOP GAINERS ON THE S&P 500. RALLYING AFTER THE COMPANY BOOSTED THE LOWER END OF THE FULL YEAR OUTLOOK. OUR NEXT GUEST IS ALSO A BIG OPERATOR IN THE HOSPITALITY SPACE. TIM: BACK WITH US IS ALAN FUERSTMAN, FOUNDER, CHAIRMAN AND CEO OF MONTAGE INTERNATIONAL. HE JOINS US IN THE STUDIO. HOW ARE YOU? ALAN: TERRIFIC, GREAT TO BE HERE. TIM: WE'VE BEEN SPENDING A LOT OF TIME ON THE ROAD AND THINGS ARE CROWDED AND IT SEEMS LIKE THE HIGH END IS DOING WELL. ALAN: IT IS, THE LUXURY SEGMENT IN GENERAL, UP 3% OR 4% FROM LAST YEAR AND WE ARE DOUBLE THAT. TREMENDOUS INTEREST IN LUXURY PRODUCTS. CAROL: WHO IS YOUR CUSTOMER? ALAN: IT VARIES FROM PROPERTY TO PROPERTY, AT RESOURCE IT IS PEOPLE COMING FOR LEISURE, WE DO HIGH END MEETINGS AS WELL. GLOBAL. MORE INTERNATIONAL BASED -- MORE AMERICAN-BASED BUT INTERNATIONAL AS WELL. IT VARIES BY SEASON AND TIME OF YEAR, SOME OF OUR PROPERTIES ,Y IS ALMOST ALL LEISURE, OTHER PROPERTIES, WE DO MORE ON THE MEETING SIDE. IT CAN BE AS MUCH AS 50% EACH. OTHER PROPERTIES ARE MORE THE INDIVIDUAL TRAVELER. TIM: HAVE YOU SEEN THE DEMOGRAPHIC SHIFT SINCE PRESIDENT TRUMP TOOK OFFICE FOR THE SECOND TERM, SOMEWHAT OF A CRACKDOWN ON IMMIGRATION, AND INTERNATIONAL TRAVEL FROM CANADA HAS FOLLOWED A LITTLE BIT, WE'VE GOT SOME NUMBERS IN NEW YORK, IS THAT AFFECTING YOU? ALAN: NOT REALLY, WE HEAR ANECDOTAL STORIES BUT NO, WE HAVEN'T FELT THAT WE LOOK AT OUR GROUP BOOKING, THE BEST LEADING INDICATOR FOR THE FUTURE, LOOKING AT NEXT YEAR, WE ARE AHEAD OF PREVIOUS YEARS. ALL GOOD INDICATIONS, BUT WE RELY LESS ON INTERNATIONAL TRAVEL THAN SOME OTHER BRANDS. TIM: WHAT ABOUT THE AGE OF THE PEOPLE COMING TO THE RESORTS? IS IT FULL OF PEOPLE IN THEIR 40'S AND 50'S NOW? YOUNG FAMILIES? ALAN: WE'VE ALWAYS HAD AN ACTIVE CLIENTELE AND THERE IS A YOUTHFULNESS TO THAT BUT WE SEE MULTI-GENERALIZATION -- MULTIGENERATIONAL TRAVEL, THREE GENERATIONS. CAROL: I'M CURIOUS ABOUT THE ADMINISTRATION AND POLICIES AND HOW IT HAS MAYBE IMPACTED LABOR COST, FOOD COST, BUILDING COST, BECAUSE THESE ARE THINGS WE TALK ABOUT A LOT WHEN WE TALK ABOUT INFLATIONARY PRESSURES. ALAN: HAVEN'T REALLY HAD THE IMPACT IN OUR OPERATING COSTS YET. CAROL: EVEN LABOR COSTS? ARE YOU FINDING ALL OF THE WORKERS YOU WANT? ALAN: LABOR COSTS HAVE GONE UP, THAT'S BEEN A CHALLENGE MARKET TO MARKET. THAT'S BEEN HAPPENING THE LAST FEW YEARS. CAROL: SO IT CONTINUES. ALAN: IT HAS NOT STOPPED. CAROL: DOES THE PUSHBACK ON IMMIGRATION MAKE IT MORE TRICKY? ALAN: NO, FORTUNATELY WE'VE BEEN ABLE TO ATTRACT THE CREAM OF THE CROP IT SEEMS TO BE BUT WE KEEP A NIGHT TOWARD THE CHALLENGE OF FINDING GREAT ASSOCIATES. IT'S THE ESSENCE OF WHO WE ARE AS A COMPANY. TIM: BUT IN ALL PARTS OF THE RESORTS -- I'M TALKING KITCHEN, HOUSEKEEPING -- NO ISSUE? ALAN: IT'S MARKET TO MARKET, SOME MARKETS THERE ARE SCARCITY. TIM: WHERE IS IT SCARES? ALAN: SEASONAL RESORTS, WE RELY ON H-1B TO FILL IN THE GAPS. TIM: WILL YOU RELY ON THOSE VISAS WITH NEW RESTRICTIONS COMING INTO PLAY? ALAN: THE RESTRICTIONS ARE H-1B SET AND WE RELY ON H2. WE HAVE THREE GREAT SKI RESORTS, DEER VALLEY, PARK CITY AND BIG SKY AND WE'VE BEEN FILLING OUT OUR ROSTER BEAUTIFULLY. CAROL: IT'S INTERESTING BECAUSE I FEEL LIKE WHEN THERE IS PUSHBACK BY THE ADMINISTRATION AGAINST IMMIGRATION AND SOME OF THE CONSTRUCTION AND HOSPITALITY INDUSTRIES DID REACH OUT TO THE ADMINISTRATION, DO YOU FEEL LIKE YOU ARE BEING HEARD? ALAN: THERE'S A CONCERN WITH NEW DEVELOPMENT AND THE COSTS ASSOCIATED WITH BUILDING HOTELS AND WE HAVE 15 HOTELS TODAY BUT WE HAVE ANOTHER 15 IN VARIOUS STAGES OF DEVELOPMENT. SOME OF THOSE COSTS ARE STILL BEING PUT TOGETHER. THERE IS AN EYE TOWARD THAT IT'S UNPREDICTABLE IS THE BIGGEST CHALLENGE. WE DON'T KNOW EXACTLY WHERE IT'S HEADING. CAROL: WE ARE TALKING WITH THE FOUNDER, CHAIRMAN AND CEO OF MONTAGE INTERNATIONAL, LEXIE RESORTS AND HOTELS. WHAT ARE YOU BUILDING? YOU HAVE HOTELS, RESIDENCES, GOLF COURSES, CLUBS -- WHERE IS THE GROWTH? ALAN: WE'VE SEEN A LOT OF INTERNATIONAL GROWTH. IN MEXICO WE HAVE FOUR NEW PROJECTS IN DEVELOPMENT AND WE ARE OPENING IN MEXICO CITY NEXT YEAR AND THE YEAR AFTER WE HAVE TWO OPENING ELSEWHERE. CAROL: MEXICO CITY CAN OFTEN BE A TARGET FOR CONCERNS ABOUT SAFETY. WHAT WOULD YOU SAY ABOUT YOUR EXPERIENCE? ALAN: IT'S BEEN TERRIFIC. WE ARE DEVELOPING IN AN AREA OF TOWN THAT'S A BEAUTIFUL LOCATION, VERY EUROPEAN IN FEEL IN A MARKET THAT'S BEEN UNDERSERVED IN LUXURY HOTELS AND I THINK WE WILL DO WELL. GREAT DINING SCENE. IT WILL BE A GREAT ADDITION AND GREAT ENTRY FOR US INTO LATIN AMERICA. TIM: TELL US ABOUT A PLACE YOU'VE CONSIDER DEVELOPING AND CHOSE NOT TO AND WHY. WHY DID YOU PASS ON IT? ALAN: WE PASS ON DEVELOPING IN MARKETS WHERE WE DON'T THINK WE CAN GET THE RATE TO SUPPORT THE LEVELS OF SERVICES WE NEED TO PROVIDE. ONE OF THE BIGGEST DISCONNECTS LUXURY HOTEL BRANDS HAVE, THEY PUT HOTEL IN A MARKET THAT HAS A RATE CEILING NO MATTER WHAT MY AND YOU HAVE AN INHERENT DISCONNECT WHERE YOU HAVE AN UNHAPPY OWNER OF THE ASSET BECAUSE YOU CAN'T GET THE RETURNS YOU WANT, OR THE COMPANIES WILL REDUCE SERVICES. I WANT TO STAY TRUE TO MARKETS WHERE I BELIEVE A LUXURY TRAVELER WILL GO. TIM: IS THERE A BASE RATE IN U.S. DOLLARS THAT YOU HAVE TO HAVE FOR A PER NIGHT RATE? I KNOW IT DEPENDS ON WHERE WE ARE. ALAN: BROADLY SPEAKING, MONTAGE RUNS AN AVERAGE RATE NORTH OF $1200, $1300 PER NIGHT AND WE SHOULD BE ABLE TO GET $1000 -- $1100 FOR A MONTAGE. THERE ARE DIFFERENT COSTS. WE FACTOR IT INTO WHERE WE THINK THE HOTEL IS TODAY AND WHERE THE MARKET WILL BE HEADING. CAROL: THE LUXURY SPACE, I WAS LOOKING AT SOME OF THE STORIES -- THERE HAVE BEEN CONCERNS IN THE LUXURY RETAIL SPACE, THEY'VE BEEN UNDER PRESSURE. THE CHINESE CONSUMER HOLDING BACK. HERMES REPORTED THIS WEEK, AND WE HAD SOME ANALYSIS AND THERE WERE SIGNS FOR AN IMPROVED SECOND HALF. WHEN YOU CAN THE LUXURY SPACE, HEALTHY, NO SIGNS OF WEAKNESS? ALAN: WE SEE IT HEALTHY. SPEND ON THE PROPERTY, HOW GUESS ARE CONSUMING OUR SPAS AND FOOD AND BEVERAGE AND RESTAURANTS. WE HAVE AN AFFLUENT GUEST LOOKING FOR VALUE, LOOKING FOR GREAT SERVICES, GREAT PRODUCT OFFERING, AND THEY WILL PAY FOR IT. CAROL: WHAT DOES VALUE MEAN? TIM: FOR $1300 A NIGHT. ALAN: YOU ARE IN AN ENVIRONMENT WHERE -- I AM MADE TO FEEL SPECIAL. THE AMOUNT OF PEOPLE I'VE INTERACTED WITH, THEIR FOCUS ON MY LIKES AND DISLIKES, PERSONAL ATTENTION, THE LACK OF -- THE HUMAN TOUCH IS A BIG PART OF WHAT WE ARE OFFERING IN THAT RELATIONSHIP THAT WE STRIVE TO DEVELOP WITH GUESTS. TIM: ARE YOU TALKING AT ALL OR DEVELOPING AT ALL -- THIS WILL SOUND WEIRD, BUT DEVELOPING AT ALL FOR SOCIAL MEDIA? I WAS JUST AT A RESORT THAT UNDERWENT A $30 MILLION RENOVATION, THIS PART OF THE RESORT LOOKS DIFFERENT AND THE POOL OVERLOOKS THE CLIFFS AND I WAS LIKE THIS IS MADE FOR SOCIAL MEDIA, THEY WANT PEOPLE HERE TAKING PICTURES AND SHARING THIS ON SOCIAL MEDIA. ALAN: AS WE DESIGN HOTELS, IT DOES CROSS OUR MIND, WHAT A GREAT SPOT, A GREAT PHOTO, WE LOOK AT THAT. WE SEE HOW MUCH ENERGY IT CREATES AND EXCITEMENT. THAT IS VERY MUCH A REAL THING. THE ABILITY -- ONE OF THE THINGS THAT MADE LAUNCHING A HOTEL COMPANY FOR US IN THIS AGE, WHAT HELPED LEVEL THE PLAYING FIELD IS THE TRANSPARENCY THAT THE CONSUMER TODAY HAS, THEY CAN GO ONLINE AND SEE THE HOTEL. A LARGE CONGLOMERATE, LARGE COMPANY CAN SPEND A LOT MORE THAN WE CAN BUT WE GET THE UNFILTERED, UNBRIDLED RESPONSES OF REAL PEOPLE AND THAT HELPS. CAROL: CAN YOU GIVE US MORE COLOR ON HOLIDAY BOOKINGS? ALAN: VERY STRONG. FESTIVE THIS YEAR, I WAS TALKING TO OUR GENERAL MANAGER AT CABO. SOMETHING WE ARE EXCITED ABOUT. SKI DESTINATIONS LOOK STRONG. WE ARE OPTIMISTIC. TIM: OUR PEOPLE BOOKING TYPICALLY WITH THE SAME AMOUNT OF LEAD TIME, ARE THEY BOOKING LATER? ALAN: FOR THE HOLIDAYS THEY BOOK EARLIER BECAUSE WE FILL UP. WE ARE TRYING TO BOOK -- YOU TO REBOOK BEFORE YOU LEAVE BECAUSE AVAILABILITY IS THAT SPECIAL. HOLIDAYS ARE THE BEST FOR FAMILY TRADITIONS AND GREAT RESORTS ARE THE EMBODIMENT OF FAMILY TIME OVER HOLIDAYS. . . WE TARGET THAT VERY MUCH CAROL: YOU DON'T SEE ANY SIGNS OF RECESSION OR SLOWDOWN IN YOUR SPACE? OR? ALAN: I'M ALWAYS WORRIED, I WAKE UP EVERY DAY, IS THERE SOME THING IN THE WORLD THAT IS GOING TO PUT US ON TILT? BUT NO, I REMAIN OPTIMISTIC AND I LOOK AT THE SIGNS, THE PERFORMANCE OF OUR HOTELS AND I AM OPTIMISTIC. CAROL: THINGS LIKE THE RATE ENVIRONMENT IN TERMS OF THE BUILDOUT, YOU ARE OK WITH IT? ALAN: I DON'T HAVE A CHOICE. WE FOCUS ON DELIVERING EXTRAORDINARY SERVICE AND BEING A DIFFERENTIATED PRODUCT. LUXURY IS NOT A COMMODITY. IF WE CAN CONTINUE TO PERFORM AT LEVELS THAT ARE EXTRAORDINARILY HIGH, I THINK WE WILL CONTINUE TO WEATHER ECONOMIC CHALLENGES. TIM: YOU TOLD US YOU SPEND A LOT OF TIME AT ONE OF THE RESORTS, YOU LIVE AT ONE OF THE RESORTS. ALAN: I DO, LUNA BEACH, AND I SPEND TIME VIRTUALLY AT OUR OF OUR HOTELS THROUGH THE YEAR. TIM: WHICH IS YOUR FAVORITE? ALAN: THAT'S LIKE ASKING YOUR FAVORITE KID, AND THEY ARE LIKE OK, WHICH ONE? WE HAVE A CONSISTENCY OF PRODUCTS, ALL SEVEN MONTAGE HOTELS OR FIVE STARS, AND FORBES WHO GIVES OUT THE FIVE STARS CALLED ME TWO YEARS AGO AND SAID CONGRATULATIONS, YOU'RE THE ONLY HOTEL COMPANY IN THE WORLD WHERE EVERY HOTEL BRAND, EVERY HOTEL IS FIVE STARS AND THAT SPEAKS TO WHY I CAN'T PICK A FAVORITE BECAUSE THEY ARE AMAZING. CAROL: IT'S GREAT TO GET SOME TIME WITH YOU, IT'S BEEN A COUPLE YEARS. THANK YOU. ALAN FUERSTMAN JOINING US IN NEW YORK. TIM: HARVARD UNIVERSITY PRESIDENT ALAN GARBER HAS EMERGED AS A CHAMPION OF RESISTANCE TO PRESIDENT TRUMP AS THE WHITE HOUSE HAS DIRECTED A SERIES OF ATTACKS AGAINST HIM. HE RECENTLY TALKED WITH DAVID RUBENSTEIN FOR TONIGHT'S EPISODE OF THE DAVID RUBENSTEIN SHOW. HE ADDRESSED MANY TOPICS INCLUDING DISCRIMINATION WHEN IT COMES TO ADMISSIONS AND FOREIGN STUDENTS >> WE ANNOUNCED IN THE FIRST COMMUNICATION AFTER THE SUPREME COURT DECISION THAT WE WOULD ADHERE TO THE LAW AND NOT CHANGE VALUES AND PRINCIPLES BUT ADHERE TO THE LAW. WE'VE MADE SURE THAT IN THE ADMISSIONS PROCESS, NOBODY INVOLVED IN MAKING A DECISION ABOUT ADMISSIONS HAS ACCESS TO THE CHECK THE BOX, WHAT IS YOUR RACE, WHAT IS YOUR ETHNICITY, ETC.. OF COURSE THERE IS AN INTERVIEW AND ASPECT OF IDENTITY WILL COME OUT. WE DON'T PROVIDE THAT INFORMATION TO ADMISSIONS OFFICERS. I WOULD ADD WE TRAIN THEM TO MAKE SURE THEY DON'T AT THESE CHARACTERISTICS THAT ARE PROHIBITED. >> YOU TALK ABOUT IMMIGRANTS AND HOW MAJOR UNIVERSITIES HAVE BROUGHT IMMIGRANTS OVER AND THEY WERE GREAT FACULTY MEMBERS AND RESEARCHERS. WHAT ABOUT GETTING FOREIGN STUDENTS TODAY TO AMERICAN UNIVERSITIES? DO YOU ACTUALLY FEEL FOREIGN STUDENTS ARE AFRAID TO APPLY BECAUSE OF VISA PROBLEMS OR THEY THINK THEY WON'T GET IN BECAUSE THERE WILL BE DISCRIMINATION? HOW IS THE CONCERN IN WASHINGTON ABOUT FOREIGN STUDENTS AND FACULTY AFFECTED HARVARD? >> FROM ANY PROGRAMS THERE IS HESITANCY ABOUT ATTENDING COLLEGE OR GRADUATE SCHOOL IN THE U.S. BECAUSE OF UNCERTAINTY ABOUT VISA STATUS AND IF THAT CAN BE TAKEN AWAY. AT THE SAME TIME, THIS YEAR, WE'VE HAD A LOT OF SUCCESS AND THE STUDENTS ADMITTED FROM OTHER COUNTRIES, VIRTUALLY ALL OF THEM HAVE BEEN ABLE TO ATTEND. IT'S TOO EARLY TO HAVE A CONFIDENT ANSWER TO YOUR QUESTION BUT WE ARE WORRIED. I WANT TO SAY ONE OTHER THING -- THEY AREN'T TRIPLY SPEAKING STUDENTS, BUT POSTDOCTORAL FELLOWS WHO WORK IN OUR LABS, IN THE HOSPITALS AND IN OTHER PARTS OF THE UNIVERSITY, THERE IS EVIDENCE FEWER OF THEM ARE APPLYING FOR JOBS IN THE U.S.. CAROL: THAT WAS THE HARVARD UNIVERSITY PRESIDENT WITH DAVID RUBENSTEIN ON THE DAVID RUBENSTEIN SHOW. THAT AIRS TONIGHT AT 9:00 P.M. NEW YORK TIME ON BLOOMBERG TELEVISION. I WILL POINT OUT, IN THAT CONVERSATION, ALAN GARBER IS SAYING A LARGER TAX WILL HURT THE ABILITY TO ADDRESS PROBLEMS THE U.S. GOVERNMENT WANTS IT TO FOCUS ON. THEY DUG INTO THAT AND THERE HAVE BEEN A LOT OF ISSUES, REQUIREMENTS OR DEMANDS FROM THE WHITE HOUSE AND ADMINISTRATION ABOUT WHAT THEY. . WANT FROM LARGE UNIVERSITIES TIM: A NEW TAX WOULD REQUIRE SOME SCHOOLS WITH LARGE ENDOWMENTS TO PLAY A PERCENT OF INVESTMENT RETURNS, UP FROM 1.4%. -- PAY 8% OF INVESTMENT RETURNS, UP FROM 1.4%. AS YOU HURT, UNCERTAINTY AROUND VISAS FOR FOREIGN STUDENTS. CAROL: WE ARE HEADED INTO THE LAST HOUR OF TRADING, HEADED TO OUR TV COLLEAGUES IN A MOMENT. WE ARE LOOKING AT A MARKET WHERE WE ARE BOUNCING JUST OFF LOWS OF THE SESSION. DOWN ABOUT 50 POINTS ON THE S&P 500, DECLINE OF 7/10 OF ONE PERCENTAGE POINT. NASDAQ 100 THE LAGGARD, DOWN 1.3%, DECLINE OF 331 POINTS AND IF YOU LOOK AT THE S&P 500, MORE THAN 300 NAMES TO THE DOWNSIDE. TIM: CRYPTO IN THE RED, A PORTION OF THE MARKET, BITCOIN DOWN 2.6 PERCENT, EITHER DOWN 4%. CAROL: TESLA EARNINGS AFTER THE CLOSE AND WE WILL CHECK ON THE EARNINGS SEASON WITH SAM STOVALL AND THEN WE WILL DIG INTO WHAT MAYORS ARE UP TO AROUND THE COUNTRY. ♪