>> from the heart over innovation, money, and power collide, this is "bloomberg technology" with caroline hyde and ed ludlow. caroline: i am caroline hyde in new york. ed: i am ed ludlow in san francisco. caroline: full market coverage ahead. inflation, rate hike bets come down. will it fool the tech sector

during rap -- tech sector rally? end meeting with china's xi, we will have details. caroline: cells drop morning for the iphone. let's check on the markets first. macro story, inflation, cpi print, looking at the core, adding fuel to the fire in the nasdaq, up more than 2% at the moment. we are seeing that across the major benchmarks.. two-year yield spiraling low, by 19 basis points as the bets for any hikes and the bets for a cut start to dial up in the summer of 2024. dollar lower versus every age currency. but why is crypto on the downside? a look at bitcoin, not getting the love from the inflation print. maybe some profit taking

happening. what about the micro? ed: stocks behind me reflect the story. foxconn and its earnings, the main contract manufacturer that assembles the iphone, a worrying outlook. apple up. stock up significantly. we will speak to the grindr ceo. and google, we will go to our reporter to talk about what youtube is doing in the context of ai-generated content. the stock story, one name is a big story, nvidia, shares up around 1.5% in the session. currently up for the 10th straight day. if they close higher in the green, that 10-day winning streak matches the record nvidia set in december 2016. it is the best performing stock on the s&p 500 year to date and on the nasdaq 100. the gain is almost 240% year to

date. the story near term is around ai and the products announcement. but also in this session, getting a boost on the inflation print. caroline: and the so-called magnificent seven, the key stocks that have driven some of the reality throughout the year. we have the laffer tengler investment cio, nancy tengler. what about this tech rally and the inflation print? >> the market loves it. let's not forget that these stocks have been delivering all the way through the rate hike regime from the fed and again with inflation higher. we have argued inflation comes down symmetrically but not necessarily literally -- linearly. i think this is a good number, not a huge surprise, and we will see what happens in december. i wrote a piece at this market is analogous to 1990, where we

had inflation above 3% for the entire decade, yields between 5% and 8% on average, possible recession, and the indices were up over 400% for the dow and s&p and over 800% for the nasdaq. ed: to be clear, in her mind, have we hit peak rate? >> ed, i think so, but that does not mean we will not continue to see volatility. we have never had this much supply come on so quickly, so i think we will continue to have the market react to news. we will see the ppi debt. in general, i think we're kind of there. caroline: going back to the 1990's reminiscing and the perhaps echo and the current market, could we continue to run on the same sort of seven names

that the market has loved thus far or do we need to get broader on where we anticipate gains? >> i think we need to get wider, need investors to work again. maybe energy, maybe financials do heavy lifting. if you look at the magnificent 7 -- this is not my work -- the analyst separated it out as its own sector. margins are growing faster. earnings and revenue growth growing faster than the rest of market and technology. so i think you have to give them the tip of the hat and say i may not want to own all of them but i want to own some of them and needed in my portfolio. the secular tailwinds are at their back. ed: speaking of tailwinds, we talked about nvidia, up for a 10th street day, matching its record run from 2016 -- up for a

10th street today. what do you make of the run? what is your attitude towards it? >> i wish i owned it. it was never cheap enough for us.it was for about 20 minutes on monday and we missed it. importantly, what you know from last quarter's earnings is that the multiple actually went down despite the stock running up. this is one of those stocks like amazon a decade ago, like walmart two or three decades ago, that you step aside and let it run and hopefully you own it. we own broadcom, so we have had some of the benefits of ai, chip, and cloud computing. we own a lot of the magnificent seven but not that name. if you own it, you keep it and let it run. if you do not own it, you wait on all of these stocks for pullbacks. caroline: what would be the

spark for pullback? >> i think we got one in september, and that was based on the fed saying they were going to be higher for longer. but i would argue in the medium-term, that does not matter because we have had much higher rates and strong investment performance from technology. then i think if we get conflicting data, if we continue to hear the fed speak, the market is still reacting to that on a daily basis. i would point out that the reason i think you want to own these stocks for the long term is that in periods of tight labor markets, historically three or four, but one analogous was around the 1980's, 1990's, the stocks have outperformed. i do not think the trade is over. someday it will be, but for now you do want to wait for volatility, maybe a poor earnings report, another fed speak period where we get conflicting data, like we did

from powell being dovish and last speech less so and the market took it to heart. that is the time when you step in. caroline: stepping into nvidia, up more than 200%, microsoft has outperformed. it is this year of efficiency. if there is any consistency in what you are seeing in some of the companies that you like, anything that makes them stand out uniquely? i know you take individual names and append them to us. >> i am happy to do that. i do not know that you would recall this, but we were adding to the group last fall. there was not a good piece of news to be found, but there were slowly and quietly delivering strong earnings growth. the names in our 12 best ideas portfolio are microsoft, strong management team, azure taking share, they are going to monetize ai. we are seeing them cram it into

every nook and cranny in offices and every aspect of their business. the deal went through with activision, launched 365 copilot. i think you will see this continue to take share and dominate. it is an obvious name, but i do not think you want to walk away from it at these levels. adobe is the unsung hero of ai, also a good management team. we play -- pay close attention to management. that is a little rich right now. service now, as i have talked about before, there was a beat beat and raise last quarter, and they have a great salesman that knows how to run the business. they're taking i.t. spend away from other providers because they are in a good spot of navigating cloud computing and generative ai computing. and then i bought apple after tim cook was heralded as no steve jobs, 2013, and we were

adding to amazon last year. i think you can still buy it here. they have figured it out and have cut costs. and we are paying attention to the health care portion of their business, but the cloud business is still growing remarkably. i think that is when you purchase and put away. ed: you did not mention mark zuckerberg but mentioned others. meta is a magnificent seven stock. do you hold him in the same leadership bracket as the others? >> uh, no. we were reluctant shareholders and sold it at current levels in a little bit higher. we missed getting back in. as with google, but we do own some of google but not in our top best per folio, but we do not like the two-share class. it is really an advertising business. the meta misstep and spending at both companies needs to be

reined in. with google, we are little more optimistic because we like the new president there. i know you can stomach money on it, but i think there are better and more interesting -- i know you can still make money on it, but i think they're better and more interesting places to be. i have not been thrilled with the leadership. caroline: we always love you coming here. nancy tengler of laffer tengler investments. speaking of ceo's in san francisco, all eyes are on a pack as leaders of the world attend, hopeful for an audience with xi jinping, and ceo's of microsoft, citi, and tesla hoping to meet with him. and there is expected to be a gender. -- a dinner. they're ready to get back to business in china. ed: part of the agenda for a xi

jinping to meet with president biden is to announce an agreement that would see fishing cramped down on the manufacturing and export -- would seek manufacturing clamp down on the exporting of fentanyl. let's have a listen. >> just to work with the u.s. and to ensure that the resources that are being sent out of china and come into either the u.s. or mexico are cut off to the fullest extent possible, that we work together to ensure that this deadly poison that is killing people in san francisco and the significant numbers and all over the country, that we are able to combat this and stop it. ed: san francisco becomes the center of the u.s.-china relationship this week. the social issue of fentanyl and the supply chain for that, and all of these ceo's who say let's get back to good terms with china.

caroline: interesting who might be there. tessa has a key supply chain issue with shanghai. what is also interesting is who is not there. tim cook has been to china recently. meta, we understand, does not sell their vr equipment in china. ed: hey i will be a talking point -- ai will be a talking point. the background you have u.s. technology export curves on ships to china directly impacting the ai supply chain. a big week ahead. caroline: i am sure it feels pretty busy where you are. coming up, growing concerns at foxconn that cells may drop -- that sales may drop. a look at that. and some movers. ed: tesla down 24% in this session. all kinds of material weakness

and accounting issues, revenues missing estimates and behind schedule on delivering contract manufactured ev's. this is "bloomberg technology." ♪

ed: time for talking tech. southeast asia's biggest internet company seeing profit loss, posting a net loss of 140 $9 million compared with a profit of $322 million the previous quarter. they have been pressured by macro conditions in the region and intense competition.

snap is taking up with amazon to let users shop for products the rackley from ads on snapchat, shares rising after the information reported that a deal has been launched for u.s. customers. this is after last week's news of a similar deal with meta for shopping on facebook and instagram. and a resurgence in china's smartphone orchid, up 11% in the first few weeks of last month compared to the same period a year ago. domestic brands picked up the slack while apple possibly to set of phones had an unusually muted debut in china. caroline: sticking on that muted demand for some of apple's iphones and what it means for the key manufacturer. it is revising its outlook on profits. this is the public arm of foxconn, and they warned cells may fall. we are joined by mandeep singh,

our senior technology analyst. perhaps not that surprising given there is a cultural backlash against the use of the phones in government, but how much is this being reflected in the supply chain? mandeep: think about the how the companies are connected. tsmc calling out pc's and smartphones being weak, it is not a surprise foxconn did the same. the consumer electronics market, we do not know if it is at the bottom. pc's saw a couple data points this quarter that suggested a bottom, but we do not know yet. i think this is a confirmation that the consumer may be weak in the first half of next year, as well. ed: a lot of this is like reading the tea leaves of third-party data and suppliers. back to apple's earnings, and tim cook talked about when he visited the country, they

claimed to have the top four smartphone handsets in the market that they saw as contracting. you draw the conclusion, does that mean you are taking market share? what do we wait for to know what is really happening with apple and data? mandeep: the iphone 15 is not going to be a big upgrade cycle. that is what it seems like an everyone is talking about what to do at the chip level to drive that adoption at the edge level. for foxconn, it is more about what they can diversify with. there is demand for ai servers. nvidia are making these servers and having the chip with foxconn as the assembler. so there is demand when it comes to ai servers. but the consumer side continues to be weak. these companies, all of them, have a pretty sizable consumer

exposure, almost 60% of their business. ai servers it is less than 5% of their footprint. ed: thank you very much. coming up, we sit down for an exclusive interview with the ceo of social app grindr as they raise their full year outlook. this is "bloomberg technology." ♪

caroline: shares of grindr popping today. let's talk about the social dating app as they raise the full year agents -- guidance. ceo george arison, great to have you on the show. what is driving this, subscriptions? >> almost all from subscriptions and add-on products.

we grew 39% year-over-year, and then a lot of that is because of a weekly pricing option and a lower-priced tear. we -- lower-priced tier. the results of that have been very positive. really happy about that. grindr, the conversion to paying customers is much lower, and this was about offering free features, and as we transition, we are seeing positive results. there is room to continue with that. caroline: $13.5 million -- 13.5 million average monthly users. where do you spend and invest, marketing, branding, the underlying product, interweaving ai? >> almost all investments are around people and building technology and product because

we have a ton of opportunity to create new features people want. we're working on teleport, which will show users in a different market than what they are in today. we spent virtually no money on marketing, less than 1% of our core revenue this year. we expect that to go up a little bit as we focus on brand to tell a story, but it will be small. we are fortunate that it is the product and the fact that people know about us that drive user growth. the network is strong and has been for a long time, all driven by word-of-mouth and by the user products built like albums, for example, that went live last year and some this year, over one billion shared in less than a year. ed: 40% topline growth, 20% paying user growth, and 8% active user growth.

what should that tell us about who is using the platform and how they use it? >> i think it is telling you that as we launch more features people want to pay for, a larger percentage of people will convert to being paying customers. we have a lot more to do on that. and we have younger people coming to the platform. unlike a lot of other social products that have been replaced, that has not really happened in our space. users are coming back to grindr as they become 18 plus, in part because they know that is where everybody else in that community is. the community growth helps with that, and we want to lean in on that. and there is a lot of opportunity with what i call older users, talking 30 to 40-year-olds, that cohort of gay men, in particular, want to start dating.

we already have a lot of dating relationships that develop on grindr, about one in four gay relationships in the u.s. originate on grindr. but we have ways for them to date better and meet better. ai is a hugety, big data so valuable in that regard. caroline: quickly, you still headlines with your return to office policies and the fact that that cut down on some of the people you employed. how has that affected the business? >> no impact on this year. we raised guidance twice, so business is doing well. we are building and not concerned about that for next year. i think what it does is allows us to attract people who really want to go after ambitious goals. they want to deliver great results for shareholders and users. grindr is this amazing place

where you can have a really great business and also doing awesome things for the user base, and that will continue. ed: grinder --grindr ceo george arison, thank you for your time. this is "bloomberg technology." ♪ inosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com hi, i'm jason. i've lost 228 pounds on golo.

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bloomberg technology. ed:

and according to sources. but it's still unclear when the stricken systems will actually start functioning again. of course, this is a big impact on the all important bond market and a stick with cyber and data security and bringing rubrik ceo paul sinha rubrics just put out its latest data security report and guess the best place to start is from a technology perspective. what was the conclusion? what is the threat that data

holders, data users around the world face right now? is the cyber mayhem out there? what our research report found was 1 in 3 people lost their personal information and they that two out of the three have data growing so fast that the security, 90% of the leaders cannot secure the data. the data growth is so much. look at what happened at mgm. mgm had $100 billion costs because their customers had contact information stolen. ed: the starting figure that jumps out at me is one into or 50% of all companies -- 1 in 2

or 50% of all companies have had a data breach incident. ? is that still the case? >> it is a combination of many things. you could have people trying to monetize, state actors, the cyber landscape is much more complex and much more active because the digital economy is becoming such a big part of the overall economy. cyber is a massive economy. caroline: total volume of data, the need to secure is rising over the next five years. what on earth is the cso to do in this current environment? get more focus on cyber? bringing in more protections? how can you battle this absolute explosion of data? >> we have to reframe the cyber discussion.

it has been about attacks. that has been how it has been the past 20 years. we have to frame from prevention to resilience. prevention is not enough. resiliency is that you can continue to operate the business even if there are cyberattacks or leaks. you protect your id, business data even when the breach and attack happens. that is cyber resilience. caroline: the future is how you deploy generative ai more broadly into becoming only the attacker but the protector here. you are backed by microsoft which is putting an awful lot of its future on artificial intelligence. how are you looking at the rubric? >> cyberattacks have gone beyond human comprehension. you have to fight fire with fire. as attackers are leveraging ai to generate more ways to attack you you have to apply ai to

understand what is really going on. the data lives in cloud data, in applications, and there is so much volume and velocity of the data generation and usage. you have to apply ai in the cloud or how to connect all of these dots to really have cyber resilience end to end. ed: we are up the end of 2023. everybody said the private sector is not doing enough to ward off cyber threats. in april we went to rsa and everyone said the private sector is not doing enough. by the end of 2023, will anyone have done anything to ward off cyber threats? >> everybody is trying hard, the challenges we are stuck in the model of trying to stop attacks. we need to reframe the discussion saying prevention is important and relying only

on prevention is a failure to plan. we assume attacks are inevitable and how do you continue to operate the business and attacks? have a strategy about resilience, recovery. again, the digital trust is important for a functioning economy. if you do not have that trust, if it is down for days and days like in the case of mgm, people's ability to have confidence in the system goes down. caroline: i want to ask about your company. quite clearly, you have problems to solve for other businesses. tell us about the exuberance around 2023, not just about people needing to invest in cyber, we get more public offerings? your name came up? how is that trajectory going for rubrick? >> our business is strong because businesses have to have a plan of cyber resilience and

that is what we need in the marketplace. given the broader micro economy of the market in a little bit of a situation, we are watching the market, where the market is right, we have entered the public market. ed: that happening in 2023, how little is left on the cards? >> i do not know, to be honest. i believe the market prediction for. wards. i believe that we will be a public company. caroline: great to have some time with you. thank you. coming up, let us talk about women's health. circle is backing from a new vc firm. the ceo joins us, next. this is bloomberg technology.

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choose payroll without the pain. caroline: time for the vc lineup that's working with gusto.

, bytedance has leased space in one of hong kong's most recognizable skyscrapers. people have flocked to hong kong as it promotes itself as a financial hub emerging from the years of covid. the other guy other than three firms want the start us they back to have responsible ai. pledges with benefits and tests to ensure that product safety is among many other things. standards are not binding. collective global, it was a change of how pensions access

the innovation economy, a new investment firm co-owned by the california pensions. launching with more than a billion dollars and has exposure to venture capital. ed: in one of the first investments since leaving meta, sheryl sandberg is backing cercle through her new venture capital fund. it uses ai to analyze biomedical economic strata -- biomedical data to improve women's health care. the ceo juan carlos riveiro joins us. with the backing, there is the cash injection, what does the long time backing bringing besides money? >> we are so happy to have the investor like the rest of the investors in cercle. we are committed to women's

health and using ai data and we are assuring that data and commitment. it is a huge possibility for improvement in our overall health. it is underserved. they have been out of style 30 years ago. they take 4.5 years to do this properly versus men. there is low investment any women's health, as you exclude oncology. we are hoping to improve women's health and we can do that. we are successful. where working with the u.s. fertility clinics in the u.s.. we are also in mexico, argentina, colombia. working in genetics. helping is going to help us to

scale and make the company bigger and have a bigger impact. ed: how does the technology work? >> i think the main difference between us and everyone else is that is the scale and dissolution. we want to enable medicine women. basically what it means is every woman is different. what works for one woman does not work for others. we provide tools and data to understand the difference and provide the best solution for each of those women. basically, there is evidence you need to understand this clinical data. provide the best solution for a clinic or a new drug development. caroline: yes. i am interested in the data and the data collection. it says you strive to meet hipaa compliance standards to ensure that privacy.

striving does not always mean hitting. how are you ensuring that this privacy remains top of mind? >> this is very important, thank you for asking. we are building these biomedical genomics graph that has billions of data points from medical imports and data. to enable that, coming from multiple different hospitals around the world. we are using our platform to remove all of the ai information to make sure that it is never possible to go back and find personal information. we are putting it all together to build better graphs and provide women's health. where making sure that it is

secure and doing good things that we want to provide for women. caroline: cheryl is passionate about equality here and underserved community of women. she is also a shrewd business person. i ministered and where the money comes into a business, your partnering with clinics, are they paying you? where does the money flow back to you as a technology provider? >> we cover half of the population, half of the population should be strong by default. we are working with those clinics and those fertility companies and fertility labs to improve the products and provide better care to improve the outcomes. in this case it is starting on, there is room for improvement. there is room for improvement.

there are harms, working with us, providing better solutions to all of the patients. our company is growing, we are just going quickly and fast in the u.s.. the business is doing very well. ed: what is it that cercle has done? is it your competence in machine learning and ai or do you go to technology partners and take the work that others have done in ai to build out the underpinnings of the platform? >> we build our own technology, in order to build the scale and solution you need to provide precise measurements to billion of women. we have 7 trillion different cells. the scale that we need is very important. a lot of companies will have millions of patients and their data but they do not have the solution to understand what is working or not working across all of the different areas. this is -- if you want to drive,

you want to use maps that have all of the data and all of the solution to make sure you are taking the right direction all of the time. you want to go to all of the different cities in the united states. to do that at that scale was only using machines in a secure way. you need to have special learning technology that will help. caroline: all of that unstructured data you are making sense of, we thank you so much. that is juan carlos riveiro there. let us talk about youtube, new rules for video makers using generative ai. we will have all of the details, next. this is bloomberg technology. ♪

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have to apologize to the city of las vegas for a disruption caused by the grand prix schedule for the weekend. some residents have been frustrated by the impact of the event with limited access to hotels during the week, the racing event will bring in around 1.7 billion of revenue to the city. i am not sure how much apologizing you really need to do because i am not sure how

much they have to apologize to monaco or anywhere else that they bring? ed: f1 has become huge in america, largely because of netflix. everyone is talking about it on social media. a 3.8 mile track for a race that has not taken place yet. the weekend, thursday, friday, is qualifying, saturday is race. everybody is up in arms. caroline: there will be fanfare. book your trip to las vegas and you did not know about it, you will not get easily about. ed: streaming, youtube will require you makers to disclose and they have uploaded manipulated synthetic content that looks realistic that includes video which uses ai tools. more, what is that youtube is requiring here? who are they requiring it of? >> thank you for having me.

youtube said in its blog post announcing this new policy that in the next year creators who use youtube's video platform need to check these new options on the creator side and disclose when they have used synthetic or manipulated content. that would automatically create a label within the video description that would indicate to readers that there is some synthetic content in their. i would apply for any ai generated video content including youtube's own ai making tools. caroline: it is notable that they have been wanting to have generative ai come to life but this is particularly important when it comes to your sensitive types of content, thinking about elections approaching or health

care is there more areas where they flagging is going to be more unique or obvious -- the flagging will be more unique or obvious? >> elections, ongoing conflicts, public health crises, there will be a flag if that is not just in the video description but on the video player itself. youtube is saying for the sensitive topics there is a higher bar. you have to disclose these things to viewers. that is part of the requirements that it is putting on these creators, if creators actually do not disclose these things consistently, they may be subject to penalties on youtube including removal of the content on the platform, or being commoditized. unable to make revenue from advertising on youtube. caroline: all of this feels like a no-brainer after meda had been

announing they have been doing the -- meta doing the same with ads with generated content within them. why has it taken youtube a week later versus meta, for example? >> google has announced a policy that would apply to political ads on all of its platforms including google search, youtube, and elsewhere. that would flag users, people who are viewing the content if there are ai generated content and that this is different because it applies to just content that is created on youtube and not particularly for advertising. google is in a special position here because they both create generative ai tools that really anyone can use and they have the

platforms such as youtube to distribute this kind of content far and wide. all year google has been talking about the enormous responsibility that comes with ai and putting ai into the hands of people. this is one demonstration of them trying to sort of walk the walk and say that we are doing the right thing. we are adding these disclosures, letting people know when generative ai is being used on our platforms. caroline: has a responsibility when you are building the tech too. thank you for joining us on all things youtube. meanwhile, that does it for this edition of bloomberg technology, another jam show across earnings and developments. ed: thanks to everyone out there who is listening to the podcast recapping the show, across all of the bloomberg platforms. coming up, a live

exclusive conversation with ken griffin in the next program, it is when you do not want to miss. this is bloomberg technology. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you?

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it's everything. matt: let us start with a quick check of the markets after a pretty incredible beginning of the trading session. the s&p 500 you can see up 1.9%. the nasdaq gaining more than 2%. the russell gaining 4.23% and making up for all of the losses year to date. russell 2000 has been down year to date and they are up above half a perc