announcer: this is bloomberg technology. caroline: i'm caroline hyde. tim: i'm in for ed. caroline: elon musk coming up. tim: adobe surging. caroline: the g7 in italy as the pope warns on ai.

lackluster economic data in the u.s. on consumer sentiment ratcheting up the risk on, risk off concerns in europe, as we worry about the french political situation. nasdaq holding up well. the s&p worse. the cac 40 slumping. i'm ashamed. we've wiped out 200 billion dollars worth of capitalization. that's the size of the greek economy. we are worrying about the political situation and macron. a lot being dissected in europe. euro off .5%. it is not risk off everywhere. small moves for crypto, a

volatile asset class. maybe i dial back the never-ending money. tim: no dial back going on in shares of adobe, having their best day going back to '20 after the company reported yesterday. they beat on the top and bottom lines. they raised their profit forecast for the fiscal year. digital media net new returning annual projections above estimates for the current quarter. more on adobe coming up. tesla today, it's the day after the shareholder meeting. it's official. the $56 billion package was approved. we saw the vote on approving incorporation from texas to

delaware, that move already happening. board news coming out. elon musk's little brother got reelected to the board. shares lower on the day, down 28% this year. earlier today we heard about it. >> look at the results. the stock has risen over 1000% during that time. he's delivered value. i'm excited for the future. we are on the cusp of autonomous driving today. tim: max, largely symbolic, that pay package. 72% approval. elon musk has the support of shareholders. max: we talked about the

challenges around him. the difference between this and 2018, one percentage point. doesn't appear he's lost support. i think conditions have changed. the reasons for concern remain but certainly this was a victory lap and he acted like it. caroline: hot damn, i love you guys, is how he jumped on stage. he was playful. max: this company has a huge retail shareholder base. he's a celebrity. the annual meetings are rockstar affairs. it was looser. you felt like maybe there had been stress building within the company that was suddenly released yesterday afternoon. caroline: relieving of stress, then he went back to the bread-and-butter.

autonomous. robotics. tasha: this could have attractive margins. the current model today is selling vehicles. caroline: is it reality? max: we heard him bring up arc invest over and over again. elon musk likes the valuation. caroline: no way! [laughter] max: what is reality? bulls will say we have the best system on the market. if you look at the trends toward autonomy, we will get there. on the other hand, there is no robotaxi today and no way to get one in the way most people understand the word anytime soon. it will require massive regulatory overhaul and

technological breakthroughs that are not there. elon musk is counting on those. he's achieved a lot. this is a huge jump. he referred to we are starting a new book. that's a challenge. that's not a given. it's a real trial for tesla. tim: there was a tease, silhouettes of vehicles under white sheets. think one of those is a cheap ev that can compete with chinese ev's? max: that is what some investors would like. we saw a panic earlier in the year when it appeared he was backing away from that. i don't think we should say he has a $25,000 ev in the near term. he talked about how hard it is to get to affordability.

how difficult the business is. he talked on and on about robotaxis. for him, the affordable tesla is the model 3. he talked about how cheap it is with incentives and the cost of gas and so on. they are pushing toward robotaxis and optimus. caroline: sci-fi, he's pretty good at overall. some of the light moments within that. there were serious moments. one of them voiced by the ceo of near impact capital, regarding annual reporting on anti-harassment and antidiscrimination efforts at tesla. you are a renowned activist investor. when you see this referendum

endorsing elon musk and his board, do you feel you are having an impact? >> good question. we are here for the long game. we have been long-term investors in tesla and we see the promise. and yet being at the meeting yesterday had us concerned about where investors are. tim: that proposal aid was voted down by shareholders yesterday. wondering where you go? given that you were one of the sponsors, that brought that to the attention of shareholders. what your next move? kristin: we don't have numbers yet. curious to see how many investors supported the board report looking into how much the company is spending on discrimination and harassment issues. for this company, elon musk said

himself, he's a pathological optimist. to get to the dreams and promises, he needs to have top talent. to hire and retain that, they need to spend money and time and attention on human capital management. caroline: you worry about the human capital management. year-over-year you are saying more allegations have emerged with few visible changes to policy. this comes in a context where we are not just talking about this with one company of elon musk's. spacex fired engineers there this week firing a lawsuit against elon musk for sexual harassment and retaliation in california. how much is this a worry more broadly?

kristin: it's significant. thousands of employees are coming forward. this isn't across one company. he's the leader of several companies. he said they are writing a new book. that will need a full-time author. when this author has so many cases of discrimination and harassment, investors get concerned. caroline: you said thousands of employees. where is that data? kristin: tesla is still using forced arbitration. it's a concealment mechanism where many employees are silenced and not able to bring to suit. many have gone to california, now the state is suing tesla for racial discrimination based on thousands of report coming to

the state. tim: some argue that the idea of talent moving between companies is a benefit for elon musk. tasha: it's great for talent acquisition. we've seen employees move between companies. if you are the top ai engineer in the world, you are not going to get bored working for elon musk. tim: what do you make of it? any indication that it is not beneficial for employees to move between? the idea of going to neuro-link to spacex to tesla has not been a boon? kristin: i don't mind cross-pollination. we want talent and well-rounded employees. we are talking about sexual harassment and racial discrimination here. those employees are not moving from one to another. they are being boxed out. there talent is not rising. they are not able to bring their

full selves to the workforce. tesla has been out in front for some time. much of the industry is poised to catch up. this talent is moving to other companies within the industry. tim: when you were on in november you said you wanted to see him step down. at least at tesla. do you still want that? kristin: we are looking for the board to put in management that works. we saw yesterday at the meeting, there's a lot of shareholders that love this ceo despite his shortcomings. if we can manage around that, there is no perfect ceo. leadership comes from the top. we'd like to see him recognize where that human capital management is missing and put that in place or go on to other projects. caroline: for those that voice

that there is a market capitalization erosion in the last six months but ultimately back him because he's contributed so much value to the u.s. economy, where do you go with the articulation of talent and money here? kristin: he's a clear leader. some would say given yesterday's following, he's a guru. many were attesting their love for this ceo. no one can argue tesla has disrupted the auto industry as we know it, particularly with the battery play and moving things electric. we want to give him the credit. there is so much potential at this company that can be realized when we know they are hiring top talent and that they can keep them. we are mindful that we want to see them working toward a place where discrimination and harassment don't happen at tesla. tim: appreciate you joining us,

kristin. coming up adobe out with earnings after the bell yesterday benefiting from the ai boon. we will have the details next. this is bloomberg. ♪

we invent them, we design them, we build them. and one day, we have to let them soar. ♪ i'm always coming home ♪

tim: adobe shares posting their biggest gain in four years, suggesting customers are adopting their new ai based tools. brody, is that relief i hear from investors saying we are not as concerned as we thought we

should be about competition from upstarts and established organizations? brody: requester, are you in ai winner or loser? investors showed people are sticking with the platform. they are willing to pay for these ai tools. it's not a ton of money from ai yet. the indicators are looking better. caroline: still notable. they've been under pressure coming in. the price target is well above where we are currently trading. what gets us there? what more proof do we need that

they are able to generate revenue? brody: so much investment in ai is in the hardware/infrastructure. at some point there have to be application uses, otherwise why are we doing it? adobe is one of those companies that has these applications used by millions. once folks are ready to start paying for ai, it's going to be with a company like adobe. it could go to canva. that's where the bear case is. tim: how important are safeguards? is this the moat adobe has? if you use its tools to generate images, they are commercially safe? brody: i hope so. that's a big part of their argument. if you use mid journey, you might get sued.

whether or not folks will always stick with adobe for this copyright concept has yet to be seen. what's more compelling is adobe already has the applications we know how to use. am i going to learn a new program based on ai or click the new button in photoshop that will help me generate something that is not disruptive to how i do my work? to me, that's the argument. caroline: love it. brody: yeah. tim: it presupposes i know how to use photoshop. which i don't. caroline: i'm sure you could dust off some of those skills. brody: i will show you. caroline: g7 in italy coming up. the pope urging world leaders to be cautious on ai. tim: shares of vodafone, news

out of the u.k.. caroline: telecom company, it is selling off stakes around the world that haven't been optimal for them. this time they're looking to sell a state in an indian tower company and block trades could fetch $2 billion. ♪ you know what's brilliant? boring.

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caroline: openai appointed a retired u.s. army general to its board of directors. he formerly led the nsa. this is to bolster cybersecurity efforts and protect tech.

london hospitals have known for years about a weakness that left them vulnerable to a recent cyber hack. it acknowledged in april that "cybersecurity remained a risk." microsoft faced a public grilling on capitol hill. the president faced questions from the homeland security committee. the tech giant pledged it would overhaul its cyber defenses in response. tim: the g7 has a surprising voice. the pope expressed his concerns about ai. annmarie hordern joins us from italy. pope francis becomes the first to address the g7. what can you tell us about what he warned? reporter: a lot of fanfare

around the pope given he is the first pontiff to ever address the g7 here in italy and this is on the heels of the pope calling for a treaty to regulate ai. he has been a victim of ai generated images. this is what he had to say to leaders. "ai is fascinating and terrible." he talked about that it is an instrument but the benefits and negative consequences will depend on how it is used and deployed. he wanted to make the case to g7 world leaders. given what we know from the draft communiqué, the leaders will release it later this evening is this, they will say they recognize the impact of ai in the military domain and the need for framework for responsible development and use. he encouraged more states to do so.

the only real deliverable we are getting, even though there is talk of ai at the second day of the g7, is that they will coordinate more together. this steps up more work and the pope has called for a global treaty. caroline: they are good at talking. policymaking, sometimes slower, unless you are in the eu. talking of eu, anxiety around france. the markets selling off hard today. anything regarding the french economy, it's political. annmarie: if you think emmanuel macron had a bad day yesterday, he had a worse day waking up today after the news last night these left-wing parties will form a coalition, coming out and talking about a manifesto, what they would do in terms of

reforms that emmanuel macron has been working on with the french economy. they're talking about lifting wages, going back to a lower retirement age. we heard from the french finance minister today talking to local radio stations in france, this will be challenging for the economy and for emmanuel macron. he will be hit now from the left and right squeezing him and he might have to pick someone from this left coalition to be his prime minister. he came into this g7 a weekend later -- weakened leader. looks like a tough gig out there. thanks. we will be talking tech from the hardware perspective. tom hale will join us. meanwhile, one french stock is doing rather well today, up 14%. the french government has been

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caroline: welcome back two "bloomberg technology." i am caroline hyde. tim: and i am tim stenovec in four ed ludlow. caroline: we are managing to bounce off the lows. the broader nasdaq index is still underwater by .1%. consumer sentiment falls again. market inflation pressure is still there. in france, markets down 2.47%. this index has wiped out tens of billions of dollars, same with

greece, because of political instability. move on and see how we are trading on individual names. adobe, phenomenal move, 14% higher, best day since 2020. we liked the adoption of adobe ai products in the earnings. tesla rallies and falls. maybe elon musk will not be jumping ship and doing ai elsewhere anytime soon. we also digest tesla moving to texas for corporate headquarters. the semiconductor company consolidating but then notably having to let go of about 1000 people, off by four percentage points. we want to talk about another key corporate company, still private, one that you might use as well. apple's latest watch

announcements came earlier in the wake. here is another company in the space seeing real momentum. we want to bring in the ceo. you have strong numbers. how many people have been buying the rings and who are buying the rings? >> we are proud to announce we have reached 2.5 million sold. we hit that milestone a few days ago. the impact we are having on millions of people's lives is so inspiring for us. it is not just the high end. it is the ceo's and people just getting their first job. it is men and women, old and young. people training for marathons or managing a chronic illness. it is incredible seeing the movement take off. tim: dig into the demographics and help us understand who is buying the ring right now. >> what has been most impressive over the last 12 months is the

shift towards women. women's health has been a hot topic. there has been a lot of history where women have not been paid as much attention to. right now, we are hitting the sweet spot. in the last 12 months, we have seen our demographic shift dramatically towards women. we are now almost 60/40 women to men. women have a real desire to take control of their health and we help them do that. caroline: the ring is working better for women now. i was bought a ring by my husband because i wanted to be more aware of my cycles. initially, it was not great. now, it is incredibly predictive. i'm interested as to what you have done on the back end. how are you using the data to interpret help much better? >> so much of what is important

to women is where they are in their life. are they worried about conception, post birth, perimenopause, or menopause? we have been investing in each of those areas. most recently, the dynamic around temperature which is one of the metrics it tracks is powerful for being predictive about a lot of things in a woman's life. it can predict when your cycle welcome, what phase of your cycle you are in, when you are fertile, when not fertile. it is a powerful tool. women have welcomed the idea they can have a lot of information, knowledge, and education founded in the data of their own body. tim: members have noticed you are able to add different measurements to the ring even after you buy it without buying new hardware. for example, cardiovascular age was something i saw recently as a new feature in the app. what community was about the product roadmap in terms of what sensors will be turned on and

what we can expect in the coming months and here? >> we have made a lot of progress investing in the software and activating sensors in the body. it is collecting your data over a long time and looking for deviations in the data. here is one example that is really interesting. we have a new thing in beta. two or three days before you get sick, it gives you signals you might be getting sick and might want to change your behavior, drink more fluid, take more rest, avoid stress. these are help features as opposed to fitness features that people find value in. if you learn that your cardiovascular system is older than it should be for your chronological age, it makes you get out of bed and work harder because you can see the metric move over time. broadening the software

solutions using thought ring will take us down the path of women's health, cardiovascular health, and we want to look at all of the things shortening lives whether it is cardio metabolic disease or other disease states that people are worried about that might cause illness or death. tim: what is the revenue breakdown between the software and hardware side? what portions of your yearly revenue come from software? >> we are pushing north of 20% is software revenue. this is a significant milestone for us. we introduced the subscription business model in 2021 have more than tripled our subscription basis since then. people are so engaged. it is your own data, your own body, your own health. people are invested in this. it is a sticky application. people consult it three times a day on average. out of any seven days, 80% of

our customers are looking at it five of the seven days. the ratio of daily active users is on par with social media. it is healthier than social media. this engagement has driven the software side of our business and is increasing. caroline: i want to talk about engagement with patents and i.p. you are pretty active when it comes to fighting for your own i.p. some companies may feel they need to make a preemptive strike. we have seen samsung talking about launching a ring. they are worried you would say they have run afoul of some of your patents. can you respond to the samsung claims and what you feel about trying to protect your i.p.? >> i cannot really comment broadly on active litigation but here is what i can say. the law does not support samsung position here -- samsung's

position here. we have filed our motion to dismiss and i believe we will prevail. tim: tom hale, thank you for joining us. caroline: i love the way when i have a glass of wine on friday or saturday, the next day it says, do not worry about it. we have breaking news. i want to bring in what is happening in apple and the e.u. the first big tech company to feel the ire of europe. they are planning to charge them over stifling apps. not being factored much into the share price but we are still off .3%. tim: we will continue to bring you developments drought the date regarding this breaking news. we are going to be joined by the cofounder and ceo to talk about

the role of women in leadership. this is bloomberg. ♪ (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪)

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♪ caroline: this is "bloomberg technology." you are looking at a. check out our -- you are looking at a principal room. check out our podcast. this is bloomberg. let's talk about the c-suite and diversity. women's representation has fallen for the first time in two decades. that is the latest from a report from the nonprofit. also, a tech enabled solution as to how things might change. it is a network of women chief executives. you are trying to shine a light that even if there is this dei pushback coming from companies and boards, maybe we are still

seeing the work being done, but why we are seeing fewer women on boards? >> we recently published a study that talked about companies still making the investment into diversity. 80% of companies are still having the same if not more investment into ensuring they have great representation at all levels of leadership. but the numbers are not moving. for the first time in over a decade, the number of women in the c-suite has declined. it is a number of factors which makes it so hard to find one silver bullet to change some of these representation numbers. it is everything from the glass cliff where women are often put into positions where they are waiting to do a turn around of a business. everything from the real push to bring everybody back into the office which we know has greater impact on women.

it is why something like chief which is focused on how we give support and network and community to senior executive women. it is still going to be hard to be a senior executive but at least less lonely and we will be able to come together to give each other support. caroline: you are offering customized mentorship packages. it may be executive coaching, education when you are in leadership, how you attune your elements to be the best you can be. how much will you be charging for this? how willing are women to pay for this? >> women go back into organizations and get them to sponsor their membership into chief. if you think about what it costs to get a six month engagement with an executive coach, that can be $30,000 for a senior executive. our price points are anywhere from $5,900 up to $11,900

for executive coaching. we started with 100 members and have grown to thousands of members across the u.s. throughout the journey, we have been adapting as an organization to understand what leaders need in this moment. that changes every year from when we started, to the pandemic, to all of the financial crises we have seen, to the socioeconomic issues people are navigating. we recently pivoted as a company to give a number of different membership packages to members that can meet you where you are. whether that is executive advisory where you meet with a peer group, your true peers that are going through everything you are going through, to meet on a monthly basis, whether that be one on one coaching because there are times when you need focused time on you, or executive education with specific things you are looking to dive into.

tim: i am wondering about the company sponsorship. we are bloomberg. we love the data. what happens if an individual comes to you and says my company will not sponsor this, i need to go back to them with proof this is a worthwhile investment, that it works, what data do you give them? >> there are a number of things we look at. success metrics with something like this is hard because success is different for every individual. we look at how much this really helps change your leadership impact. how much you believe you are a stronger, better leader because of your participation in chief. how much do you feel you have bill lee connections that help you navigate new areas you need to look into. those are the numbers we give back to the organizations, on top of the broader numbers of how important it is to drive diversity into your company's and what that does for you as an organization. tim: top numbers.

how will you get to 100%? >> we have members in 10,000 different companies. we have amazing sponsorship across all of these different organizations. we continue to build those relationships again and again but have already made a significant impact into all of the different companies to be able to sponsor their members. caroline: how many companies have pulled away as the pendulum on dei has shifted? >> people are talking about the investment less than they are pulling back on the investment. caroline: we did a whole show on it yesterday. i want to ask about your own capital. you raised a ton of money back in the heady days of 2022. i wonder whether you need more. you have big commitments from well-known venture capitalists. it is expensive opening clubhouses. and satisfying the needs of your membership. >> i think we are always wanting

to continue to invest in our members and make sure they are having the best experience and continuing to grow as leaders. we are also a really strong business that does not need to raise capital. caroline: you are comfortable? >> we are profitable, yes. tim: very cool. maybe breaking news on "bloomberg tech." carolyn childers, cofounder of chief, thank you for joining us. we will look at the timeline for the launch of ether etf's this summer. this is bloomberg. ♪

tim: yeah highly anticipated launch of ether etf's could be coming as early as this summer. james joins us with more. how do you take his recent comments in terms of your own thinking when it comes to the actual launch date? when will investors have access to this, at least according to "bloomberg intelligence"? >> when these things were approved towards the end of may, we said they would be out by the end of the summer, possibly earlier. our overall take is these things are likely to begin trading this summer. we put the over/under around july 4. there is a lot of overlap from

the launching of bitcoin and ethereum etf's. they had to go through similar processes with the sec. there is new stuff with spot ethereum but we did not think it would take as long as spot bitcoin. spot bitcoin started early october and launched january 10. that is a three-month process. we think it should take less. all of these issuers submitted documents for registration, the last step in the process to get them approved fully, on may 31. there has not been movement as far as we can tell from the sec. the sec is in no rush at this point. i think it is unlikely it would take beyond the summer. we were saying that weeks ago. i feel it gary gensler saying that in front of congress did not give us more insight. but time will tell. caroline: the players are the same names we saw with the bitcoins bought etf -- bitcoin

spot etf. is it matching slightly less demand? >> we think it will be slightly less demand, but you are talking about slightly less relative to some of the most successful launches across the world. even if you get 25% of the flows which is the range we are thinking, part of that goes back to the fact ethereum is about 35% the size of bitcoin so there will be less demand. technically speaking, 3.5 issuers jumped out of this. ark has backed out but we have one new issuer. most of the same players are still in this. caroline: lift the lid on why people might get out and what people feel about the process.

i'm hearing behind the scenes a lot of time the stop-start, the sudden desire to have the documentation and then go quiet is exhausting and many feel there are more challenges than necessary. james: what has happened from what we are seeing and hearing is a lot of this has become political. it seems like this approval happened on the back of political winds shifting which is why we do not know when this will launch and why there is such a big gap between the approvals. a lot of it has to do with the fact this had become so political in nature. another reason people have backed out is if you can stake ethereum, that is a 3% to 4% yield. that is like a fee that you are missing out on. there are inefficiencies. one of the reasons i think these issuers have backed out is fees

cut so competitive. we saw a massive fee war before these launched. prices compressed to where issuers are not making that much money. if you are a smaller issuer, you have to compete with the behemoths like blackrock. it is very hard to start from day one against those cards. a lot of smaller issuers benefited from smaller products. they are all starting out of the same gate and it is hard to compete with that much distribution and size. tim: i know you do not do price targets at "bloomberg intelligence," but i'm curious about the price because we are still not back to the all-time highs whereas bitcoin did hit an all-time high i few months ago in the wake of the spot bitcoin etf's. tell us about the way you are thinking about movement when these become available for investors.

james: the consensus from the market was it would be by the rumor and sell the news. when money started pouring into the funds, bitcoins price ran. etf's are one of the reasons we have seen the all-time highs in bitcoin. i guess it will depend on a happens with the flows on the back of ethereum. if they do not see as much interest or more than people are expecting, we could see that ron and all-time highs. ethereum is caught in the middle. bitcoin has this narrative that it is digital gold. ethereum is more the internet of money, app store, what have you, with a lot of competitors. it is competing with other queens. cameron: james -- caroline: james, thank you. that does it for this edition of "bloomberg technology." happy friday. great to have tim in the spotlight.

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