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Oil Pushes Higher With Ukraine Talks and China’s Pledge in Focus · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 2: Talks between the US and Ukraine are helping to advance
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  Speaker 2: oil prices this morning.
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  Speaker 3: Let's get some more insight now on this.
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  Speaker 2: Another commodity moves with Miami Mike mcgloone, Senior Commodity Strategies,
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  Speaker 2: a Bloomberg Intelligence located in Miami Beach.
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  Speaker 3: Mike, talk to us about just I'm seeing.
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  Speaker 2: You know, w chech crude oil fifty eight dollars of
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  Speaker 2: barrets up a buck.
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  Speaker 3: But this is really really low price for oil.
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  Speaker 2: Are good friends in the oil patch in Odessa and Midland, Texas?
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  Speaker 3: They are not happy, No.
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  Speaker 4: They aren't, and unfortunately still producing more oil now that
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  Speaker 4: is on decline. That should be it's responsive elasticity to
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  Speaker 4: lower prices.
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  Speaker 5: But what's happened in Russia Ukraine?
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  Speaker 4: If there's dayton, if there's significant peace, the first thing
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  Speaker 4: you should expect to go down is potentially gold and
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  Speaker 4: natural gas natural gas.
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  Speaker 5: Prices because we'll be bringing on more of that supply.
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  Speaker 4: So it's not really a good reason unless there's some
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  Speaker 4: kind of curtailment of supply for prices to go up.
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  Speaker 5: It's an overall bear market.
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  Speaker 4: But if you look over next year, I think the
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  Speaker 4: range and crudel can be from around forty to seventy.
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  Speaker 4: Now that's a normal first standard deviation move safely end
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  Speaker 4: the year between fifty five and sixty.
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  Speaker 5: But the bottom line, pol is the.
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  Speaker 4: Average cost of production to break even costs in this
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  Speaker 4: countries around.
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  Speaker 5: Fifty five, so they can do pretty well.
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  Speaker 4: In the point is you basically have to get below
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  Speaker 4: those levels for an elongated period to offset these excesses
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  Speaker 4: of global supply versus demand. So I'm still bears CRUDEIL,
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  Speaker 4: but I wouldn't be surprised we'd get it, you know,
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  Speaker 4: I think traders are looking for bounces to sell.
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  Speaker 6: Okay, let's talk about where perhaps geopolitical anxiety has fed
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  Speaker 6: into a rush to Haven's boy dof you see it
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  Speaker 6: in the run up in gold in well, we're having
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  Speaker 6: a little bit of is it profit taking happening right now?
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  Speaker 7: Mike?
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  Speaker 8: Where do you point.
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  Speaker 6: Us towards in terms of buying the dips or selling
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  Speaker 6: where we're at. I.
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  Speaker 5: Caroline, I love how you went there.
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  Speaker 4: The phrase that I keep thinking of is you're supposed
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  Speaker 4: to be selling when you're they're yelling. Particular in silver,
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  Speaker 4: silver is one of the most over blought commodities on
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  Speaker 4: the planet. You have to go back to nineteen seventy
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  Speaker 4: nine to get a similar stretch. Almost two times versus
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  Speaker 4: is fifty week moving average, and that peak we put
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  Speaker 4: in that we closed at thirty two dollars and thirty
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  Speaker 4: two cents that year. The next year that we close
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  Speaker 4: above that level was this year. So that's what happens
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  Speaker 4: when you get this stretch. So I'm very concerned about
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  Speaker 4: things like silver. Yeah, it could get to one hundred,
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  Speaker 4: but it typically will drop towards fifty. That's a full
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  Speaker 4: normal range for next year. It's what I expect. It's
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  Speaker 4: the number one metal expect to be down next year
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  Speaker 4: because it's a short squeeze. Now, now gold's a little
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  Speaker 4: different story, but gold's expensive too, So the whole precious
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  Speaker 4: metals to market market looks to me like, yes, it's
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  Speaker 4: been great for those of us who have been bullish forever,
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  Speaker 4: but it never hurts, it takes and profits, and right
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  Speaker 4: now I think we're seeing some of that.
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  Speaker 2: Mike, twenty twenty six. What's kind of the play in
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  Speaker 2: your world here? You're twenty twenty six out of look
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  Speaker 2: in global commodities? Am I buying pork bellies or where
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  Speaker 2: am I going?
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  Speaker 5: Yeah?
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  Speaker 4: I love how you always go to pork bellies plot
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  Speaker 4: because I don't really try. I don't know much about
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  Speaker 4: wyllies just to That's why you need to trip me off.
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  Speaker 5: That's important.
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  Speaker 4: The number one thing I'm worried about is this continued
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  Speaker 4: deflation in the elastic commodities, the grains, energy, crude oil,
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  Speaker 4: natural gas.
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  Speaker 5: I fully expect those to continue.
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  Speaker 4: So levels I'm looking for is crude oil to get
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  Speaker 4: to their forty natural gas to get in there too.
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  Speaker 4: That's not profound, It's what it's always happened. Corn corn
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  Speaker 4: to dropped down like three dollars and fifty cents.
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  Speaker 5: Those are break even costs.
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  Speaker 4: The key thing I'm worried about is this signals by
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  Speaker 4: having gold having its best year ever versus crude oil
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  Speaker 4: down that exceeded the extremely head in two thousand and eight,
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  Speaker 4: I'm really worried about this stock market problem. So right now,
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  Speaker 4: for industrumentals to go up, the stock market basically has
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  Speaker 4: to go up. But when here's a key thing I
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  Speaker 4: like to end with, we just never had this type
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  Speaker 4: of high velocity rally in gold and silver and precious
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  Speaker 4: metals with stock market volatilely this low. So typically it
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  Speaker 4: means stock market volatile will go up next year and
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  Speaker 4: that might be all that matters.
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  Speaker 8: What about digital gold like going down?
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  Speaker 5: It's still bear market. We peaked. I think we're gonna
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  Speaker 5: look at bitcoin. Likely looked at silver in nineteen seventy nine.
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  Speaker 5: This year it's a pretty significant peak. I think bitcoin's
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  Speaker 5: more like the head towards fifty.
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  Speaker 4: That's a normal correction, particularly if the stock market goes
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  Speaker 4: down and the whole rest of the space to continue
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  Speaker 4: that bear market. So good examples of Bloomberg Galaxy Crypto
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  Speaker 4: index is down about twenty percent this year.
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  Speaker 5: It's a key reversal. Was up about twenty percent this year.
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  Speaker 5: It looks just like this US stock market did in
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  Speaker 5: nineteen twenty nine. The difference is there's an unlimited supply
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  Speaker 5: of cryptocurrencies. There's only one in two thousand and nine
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  Speaker 5: that was Bigcoin.
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  Speaker 7: Stay with us.
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  Speaker 3: More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligen in the podcast Catch
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  Speaker 1: demand wherever you get your podcasts, or watch us Live
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  Speaker 1: on YouTube twenty five.
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  Speaker 6: In many ways was not discerning. There were record highs,
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  Speaker 6: there were sudden reversals, there was years of conviction trades,
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  Speaker 6: there was costly comebacks, and it's all been written down
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  Speaker 6: by our wonderful colleagues at Bloomberg News, and we can
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  Speaker 6: sit down with one of them, Michael Reagan. Here's Bloomberg
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  Speaker 6: Managing editor for US Equities, who drills into the AI
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  Speaker 6: trade and whether now it's time for the big short.
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  Speaker 6: We all know what that word play is pointing towards
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  Speaker 6: and one Michael Berry. How did he really pour cold
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  Speaker 6: water on some of the big AI hag.
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  Speaker 9: Yeah, it was really interesting. I mean, you know, first,
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  Speaker 9: let's you know, to be fair, it was a great
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  Speaker 9: year to own AI SoC you know, as we get
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  Speaker 9: to the end of the year in videos up forty percent,
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  Speaker 9: pollunteers up one hundred and forty I think, but Burry
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  Speaker 9: really did throw some cold water on the trade in
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  Speaker 9: a very high profile matter in early November when he
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  Speaker 9: disclosed put positions in Palenteer and in Vidia in his
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  Speaker 9: hedgephund see on asset management. You know, since actually closed
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  Speaker 9: the fund, but it really sort of landed like a
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  Speaker 9: thud in the market. You know, both those stocks and
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  Speaker 9: the NASDAC were really setting record high after record high.
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  Speaker 9: You know, again, they're still going to have go into
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  Speaker 9: the books as very good years for both stocks, but
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  Speaker 9: they they haven't set a new high since then.
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  Speaker 7: They both took took a big dip.
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  Speaker 9: The Nasdaq hasn't set a new high since he disclosed
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  Speaker 9: these puts. So to me it was like, you know,
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  Speaker 9: he really sort of hit a raw nerve I think
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  Speaker 9: in what people's concerns were about the AI trade that
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  Speaker 9: you know, yes, there's a lot of promise there, much
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  Speaker 9: like the dot com era, but the winners and losers,
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  Speaker 9: you know, it's a.
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  Speaker 7: Long way from knowing who they will all be.
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  Speaker 9: I mean, obviously in Nvidia has a good case to
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  Speaker 9: be you know, one of the main winners. So so
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  Speaker 9: that was one of you know, to us, we love
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  Speaker 9: writing about a good trarian call, especially one that sort
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  Speaker 9: of hits the top of the market like that.
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  Speaker 7: So that was one of our big trans of the year.
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  Speaker 5: Mike.
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  Speaker 2: There's a lot of people in this market that don't
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  Speaker 2: recall a market where Tech was.
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  Speaker 3: Not leading this.
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  Speaker 2: That's true, I mean, and I'm quite frankly, I'm not
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  Speaker 2: sure if you're telling me that Tech's not going to
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  Speaker 2: be a driver in twenty twenty six.
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  Speaker 3: You know, you got to be cautious there, if that's
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  Speaker 3: kind of your belief.
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  Speaker 9: Yeah, yeah, And I wouldn't believe me. I would not
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  Speaker 9: be the one to say that. Yeah, to buck with
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  Speaker 9: the trend.
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  Speaker 3: And I heard that from the street, because the street's
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  Speaker 3: still very bold.
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  Speaker 9: Yeah, yeah, I think you know, what we've seen in
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  Speaker 9: the last couple of months is sort of this a
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  Speaker 9: little bit of a rotation into some of the other,
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  Speaker 9: you know, forgotten sectors, some of the more cyclical sectors.
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  Speaker 9: And you know, obviously Tech will go into the books
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  Speaker 9: as among the best gains of the year.
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  Speaker 7: You're totally right, most years they are.
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  Speaker 9: You know, you look at the NASDAQ one hundreds performance
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  Speaker 9: versus the S and P, and it's just on any
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  Speaker 9: given time frame, it's you know, I mean, that is
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  Speaker 9: our economy, right, that's where the growth is, is that
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  Speaker 9: that's where all the excitement is. You know, I'm not
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  Speaker 9: sure anyone expects, you know, a big correction in tech stocks.
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  Speaker 9: I think Alex has written about, you know, a lot
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  Speaker 9: of strategies though, are wondering if this rotation into other
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  Speaker 9: sort of least less loved pockets of the market could
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  Speaker 9: continue next year.
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  Speaker 6: Though, And at the moment, speaking to Mark how Marx's anxiety,
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  Speaker 6: everyone seems to be one side of this trade and
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  Speaker 6: the S and P five hundred is going to go higher,
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  Speaker 6: but towards us through some of It's just such a
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  Speaker 6: brilliant story that you've brought to us talking about all
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  Speaker 6: the ways in which twenty twenty five was defined by
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  Speaker 6: certain trades.
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  Speaker 8: Crypto was another huge one, and if.
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  Speaker 6: You look at me at Bitcoin, it's down on the year.
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  Speaker 6: You could have booked some enormous gains if you'd sold
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  Speaker 6: at the right time. Also, if you're training some of
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  Speaker 6: these mean coins, particularly the Trump related ones, you've basically
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  Speaker 6: lost endying gains if you'd held on to Yes.
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  Speaker 7: Yes, mind you, these are the big trades of the year.
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  Speaker 9: Not necessarily all winners, right, but they were sort of
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  Speaker 9: the trades that captivated, defining the defining.
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  Speaker 7: Trades of the year.
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  Speaker 9: And here President Trump came in promising to be the
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  Speaker 9: crypto president, you know, basically getting rid of all the
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  Speaker 9: regulatory actions against the major crypto players, pardoning a bunch
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  Speaker 9: of people who were in jail for crypto, launching his
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  Speaker 9: own mean coins, you know, the Trump coin and the
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  Speaker 9: Milania coin.
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  Speaker 5: I think that.
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  Speaker 9: Was pretty dramatically surprising to a lot of people to
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  Speaker 9: think with the President the full power of the White
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  Speaker 9: House behind digital assets that we wouldn't see just this
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  Speaker 9: blockbuster year. But it, you know, it just goes to
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  Speaker 9: show you markets are designed to surprise you and upset you.
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  Speaker 9: And you know, Trump's mean coin had a huge rally
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  Speaker 9: at the beginning.
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  Speaker 7: It's down something like eighty some percent.
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  Speaker 9: Now Malania is the same thing, down like I think
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  Speaker 9: ninety nine percent. So you know, you don't need me
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  Speaker 9: to tell you that crypto is risky. But you know
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  Speaker 9: there's there's exhibit A.
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  Speaker 3: Stay with us more from Bloomberg Intelligence coming up after this.
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  Speaker 2: Bloomberg News. Deeply sourced, just great, fascinating stories, really well done.
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  Speaker 2: This one goes to Wall Street's balance of powers shifting.
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  Speaker 2: Big banks are roaring back as as regulation eases, lending
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  Speaker 2: surges and private credit giants lose some of their luster.
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  Speaker 2: There Bloomber's Katherine Chiglinsky helps lead our investing coverage. She
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  Speaker 2: is a pride of the Wayman Mary University, but she
• 10:42
  Speaker 2: leads our coverage on all that stuff and investing in banks.
• 10:45
  Speaker 2: She joins us for more talk to us about kind
• 10:47
  Speaker 2: of the big banks. Like when I graduated from business school,
• 10:50
  Speaker 2: went to the Chase Manhattan Bank, we did leverage lending,
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  Speaker 2: we made a fortune, and to see private private credit
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  Speaker 2: take some of that business away, it.
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  Speaker 3: Really surprised me. Over the last fifteen years or so,
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  Speaker 3: how's that balance of power these days?
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  Speaker 8: Well, it was huge.
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  Speaker 10: I mean it was a huge shift to see all
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  Speaker 10: these private credit, private equity firms sort of really taking
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  Speaker 10: all this market share away from the banks. As the banks,
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  Speaker 10: you know, post financial crisis, we're sort of limited by
• 11:14
  Speaker 10: regulations and also we're arguably trying to be a lot
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  Speaker 10: you know, safer overall.
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  Speaker 8: But now we're actually seeing it change a little bit.
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  Speaker 10: And I'm not trying to say, you know, banks are
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  Speaker 10: going hog wild on everything, but like they've been involved
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  Speaker 10: in a lot of the leverage loan deals this year,
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  Speaker 10: We've seen them in some of the major acquisition financing.
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  Speaker 10: And it's been a good year for the banks. I mean,
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  Speaker 10: regulations have pulled back. JP Morgan's on track to have
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  Speaker 10: its highest annual profit, so it's actually been a pretty
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  Speaker 10: good time now to be a bank. Yeah, the balance
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  Speaker 10: is really shifted.
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  Speaker 6: It's revenge of the banks, is how Mike Mayo, well
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  Speaker 6: known analyst Bank panast Over at Wells Fargo put it.
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  Speaker 6: These non banks, though, do they in return perform less,
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  Speaker 6: well have less of the pie? How does ultimately and
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  Speaker 6: distribute itself? Because so just the shist scale of non
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  Speaker 6: non usual assets so well turn into acets has just
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  Speaker 6: grown exponentially to like sixteen trillion.
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  Speaker 8: Grown exponentially.
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  Speaker 10: So obviously I still think those firms will be fine overall,
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  Speaker 10: but you're really seeing the stock price talk a little bit,
• 12:17
  Speaker 10: so like the bank stock prices are up quite a bit.
• 12:19
  Speaker 10: I mean, City Group we had their price to book
• 12:21
  Speaker 10: ratio climb above one percent for all the time in
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  Speaker 10: a very long time. Like, I think you're starting to
• 12:26
  Speaker 10: see them sort of get their mojo back a little
• 12:28
  Speaker 10: bit and really find the groove and the businesses that
• 12:31
  Speaker 10: they're you know, digging deeper into investment, banking, trading, et cetera.
• 12:37
  Speaker 8: But I also think you're.
• 12:38
  Speaker 10: Seeing you know, I think you'll still see these credit
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  Speaker 10: private credit firms you know, work really hard and like
• 12:45
  Speaker 10: you know, find different deals.
• 12:47
  Speaker 8: But I do think it's more challenging.
• 12:48
  Speaker 10: I mean we've had that whole you know. I feel
• 12:50
  Speaker 10: like this year it was the credit cockroach debate. Yeah,
• 12:53
  Speaker 10: that really rained for a long time and involved some
• 12:56
  Speaker 10: of the banks were involved in some of those cockroaches,
• 12:58
  Speaker 10: like first brands.
• 12:59
  Speaker 8: You know, I think there is.
• 13:01
  Speaker 10: This growing sense that like, maybe we should be a
• 13:03
  Speaker 10: little more, we should scrutinize a little bit more of
• 13:06
  Speaker 10: these deals. And obviously the alternative asset managers got so
• 13:10
  Speaker 10: big in the private credit space for so long that
• 13:12
  Speaker 10: I think there's a little bit more of a scrutinizing
• 13:15
  Speaker 10: eye on those well.
• 13:16
  Speaker 2: I mean, even in a Warner Brothers Discovery deal, there's
• 13:18
  Speaker 2: a lot of big banks bridge loans bring back terms
• 13:21
  Speaker 2: we haven't heard in a while.
• 13:22
  Speaker 3: You know, a bridge loan which will be refinanced with
• 13:24
  Speaker 3: a you know, a bond deal or something like that.
• 13:26
  Speaker 2: Some of the traditional MNA financing seems to be coming back.
• 13:30
  Speaker 2: But these private credit folks, they're not going away because
• 13:33
  Speaker 2: the money continues to flow into that asset.
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  Speaker 9: Last.
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  Speaker 8: Yeah, the money continues to flow.
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  Speaker 10: And I think, you know, I think every competitor of
• 13:40
  Speaker 10: a private credit firm really understands that, you know, they're
• 13:43
  Speaker 10: not going away, Like you should be very careful.
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  Speaker 8: You are.
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  Speaker 10: You know, if you're a bank for these financing deals,
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  Speaker 10: you're going up against a lot. I mean, yeah, you
• 13:51
  Speaker 10: look at the Warner Brothers situation. I mean, the amount
• 13:53
  Speaker 10: of firms that were involved in each of those bids.
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  Speaker 10: It's kind of crazy to say, you know, it was banks,
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  Speaker 10: but it was also private cat at firms and alternative
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  Speaker 10: asset managers.
• 14:03
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• 15:13
  Speaker 11: So stream has two parts. There's the stream app, which
• 15:19
  Speaker 11: is kind of like a conversational notes app that will
• 15:24
  Speaker 11: take notes silently, that will respond to questions in a
• 15:27
  Speaker 11: voice that sounds a bit like your own, and you
• 15:30
  Speaker 11: primarily interact with it using the stream ring. So it's
• 15:34
  Speaker 11: this little device here with a touchpad on the side
• 15:38
  Speaker 11: and a mic on top, and you just hold speak
• 15:42
  Speaker 11: into it and release and it will vibrate to let
• 15:45
  Speaker 11: you know that it heard you, and if you have
• 15:47
  Speaker 11: earbuds in you can then hear a response.
• 15:51
  Speaker 2: I'm seeing people wearing all kinds of rings here, So
• 15:54
  Speaker 2: it's obviously that the market is ready for this type
• 15:57
  Speaker 2: of hardware. Here, what we need, what problem does it solve?
• 16:02
  Speaker 2: What does it really do for the user here? What
• 16:03
  Speaker 2: are you trying to capture?
• 16:05
  Speaker 11: Definitely? So Sandbar is based in New York City, and
• 16:11
  Speaker 11: while on the go often ideas will pop up where
• 16:15
  Speaker 11: you'll want to take a note of something for later,
• 16:18
  Speaker 11: or you'll want to get a little bit of information
• 16:21
  Speaker 11: like hey, tell me what's new in the markets today,
• 16:24
  Speaker 11: and have that beam straight into your headphones while you're
• 16:27
  Speaker 11: on your way into work. And being able to be
• 16:31
  Speaker 11: in the moment and tap into those instances of flow
• 16:35
  Speaker 11: without stopping and pulling out your phone makes a big
• 16:38
  Speaker 11: difference to actually performing that interaction versus it getting lost
• 16:43
  Speaker 11: in the moment.
• 16:44
  Speaker 6: Davely All, Bloomberg opinion columnist, had the joy of using
• 16:47
  Speaker 6: your ring and I did as well. I've played with
• 16:49
  Speaker 6: it a little bit already, and he sort of described
• 16:52
  Speaker 6: how it basically is not un drawing unwanted attention, and
• 16:56
  Speaker 6: also key doesn't make others feel uncomfortable. For me, I'm
• 16:58
  Speaker 6: an avid cyclist, Paul, and I get to in from
• 17:01
  Speaker 6: the office with that. The amount of times I've wanted
• 17:03
  Speaker 6: Siri to just answer something about biking docs or about
• 17:07
  Speaker 6: where I'm doing, or the meeting I'm about to go to,
• 17:09
  Speaker 6: and it just doesn't work.
• 17:11
  Speaker 8: And I'm interested, meaning from.
• 17:12
  Speaker 6: Your perspective, how much, given it's coming out I think
• 17:14
  Speaker 6: in the summer of twenty twenty six, how much is
• 17:17
  Speaker 6: this predicated on the fact that Apple doesn't get his
• 17:20
  Speaker 6: act together.
• 17:22
  Speaker 11: I think that there's a lot of opportunity for new
• 17:25
  Speaker 11: companies to demonstrate new products that are focused on I guess,
• 17:29
  Speaker 11: very specific applications to start that hopefully grow over time.
• 17:33
  Speaker 11: A big limitation of existing AI products, especially those built
• 17:37
  Speaker 11: into devices, is they'll give you a single response to
• 17:43
  Speaker 11: a single query. But if I want to do a
• 17:45
  Speaker 11: really fast back and forth, not only do I need
• 17:49
  Speaker 11: great hardware, but I also need great software that's capable
• 17:53
  Speaker 11: of a thoughtful response that's really high intelligence, that's emotionally aware,
• 17:58
  Speaker 11: and solving all of those difficult personality challenges and hardware
• 18:03
  Speaker 11: challenges is something we're excited to dedicate ourselves to and
• 18:07
  Speaker 11: something we really haven't seen anyone do before.
• 18:10
  Speaker 2: Some people with just devices in general, me to have
• 18:13
  Speaker 2: a concern of it's always listening to me, and I'm
• 18:16
  Speaker 2: not sure I like that from a security perspective.
• 18:20
  Speaker 11: Address that issue absolutely so at Sandbar, we love thinking
• 18:25
  Speaker 11: of the bar test, which is what would you wear
• 18:28
  Speaker 11: at a bar and feel comfortable wearing and the people
• 18:31
  Speaker 11: around you it also feel comfortable wearing. So the really
• 18:34
  Speaker 11: nice thing about the stream ring is it only listens
• 18:38
  Speaker 11: when this touch pad is held, and the mic only
• 18:42
  Speaker 11: picks up basically what's right in front of it, So
• 18:44
  Speaker 11: you really have to whisper into it.
• 18:46
  Speaker 7: And that's great if you're on the subway.
• 18:48
  Speaker 11: And it's really loud and you want to take a note,
• 18:51
  Speaker 11: or that's great if you're walking on the street or
• 18:53
  Speaker 11: you're driving and you don't want to disturb the people
• 18:55
  Speaker 11: around you and mention something quietly. But it's really not
• 18:59
  Speaker 11: designed for up what's around you or recording everything.
• 19:03
  Speaker 6: What's so interesting is about where You've come from and
• 19:06
  Speaker 6: a lot of work academically done, but also you were
• 19:09
  Speaker 6: inside Meta. Meta bought your previous startup Control Labs, and
• 19:13
  Speaker 6: in many ways, Meta's gone all in on the future
• 19:16
  Speaker 6: of eyewear and the idea that you can have these
• 19:18
  Speaker 6: ray bands that will interact with your surroundings visually and
• 19:21
  Speaker 6: be able to talk to you as well. People have
• 19:23
  Speaker 6: loved that product with you and the focus on audio.
• 19:27
  Speaker 6: What I'm really interested in is that it speaks to
• 19:29
  Speaker 6: you in your own voice, or like your voice. Why
• 19:33
  Speaker 6: do people like that rather than an unfamiliar voice that
• 19:36
  Speaker 6: perhaps they currently are using, whether it's a Google Home
• 19:39
  Speaker 6: or an Amazon Alexa or indeed with Siri definitely so.
• 19:45
  Speaker 11: Our core design philosophy is that we want stream to
• 19:49
  Speaker 11: feel like an extension of your own thinking. And if
• 19:53
  Speaker 11: we look at how the public and consumers are beginning
• 19:56
  Speaker 11: to view AI, people are I think excited by the
• 20:00
  Speaker 11: benefits that it brings, but they're also nervous about whether
• 20:03
  Speaker 11: AI will replace their relationships or replace their jobs. And
• 20:08
  Speaker 11: something nice about this extension framing is that the AI
• 20:12
  Speaker 11: is always in your control. It only listens when you want.
• 20:16
  Speaker 11: You know, you can tap to interrupt it. Really quickly.
• 20:19
  Speaker 11: It responds when you ask things of it, and that
• 20:25
  Speaker 11: changes the relationship from one of replacement to one of
• 20:28
  Speaker 11: extending your own ability to think and answer questions. And remember,
• 20:33
  Speaker 11: and when we were testing out different voices, one day
• 20:36
  Speaker 11: my co founder Careoc suggest said, well, hey, why don't
• 20:38
  Speaker 11: we just try a version of your own voice? And
• 20:43
  Speaker 11: initially it was a bit strange, but quite quickly it
• 20:45
  Speaker 11: feels much more natural than anything we had tried before,
• 20:49
  Speaker 11: and so that became a surprising, really nice finish to
• 20:53
  Speaker 11: that design philosophy.
• 20:56
  Speaker 2: Mean it to what extent is AI in your here
• 21:00
  Speaker 2: and where do you think it can take you? As
• 21:04
  Speaker 2: more and more people get more and more comfortable in
• 21:06
  Speaker 2: trusting some functionality to AI.
• 21:10
  Speaker 11: Absolutely, I mean basically none of this product would be
• 21:13
  Speaker 11: possible without all of the incredible advancements and models. Models
• 21:18
  Speaker 11: handle creating notes and organizing them and providing the response
• 21:22
  Speaker 11: and creating memories that your stream can draw on to
• 21:26
  Speaker 11: continue conversations over time, and as those models get more
• 21:31
  Speaker 11: intelligent and more useful, you could imagine this is becoming
• 21:35
  Speaker 11: a portal to all kinds of things you're querying off
• 21:39
  Speaker 11: your prepping, So you know, you could imagine saying, hey,
• 21:44
  Speaker 11: give me a podcast of all of the things I
• 21:46
  Speaker 11: have to get done today, and by the way, can
• 21:48
  Speaker 11: you draft some of those so they're ready at my
• 21:50
  Speaker 11: computer when I get to work, and then you sit
• 21:52
  Speaker 11: down and things are basically already there for you. And
• 21:57
  Speaker 11: those kinds of deeper action and sequential processing will require
• 22:02
  Speaker 11: advancements beyond what we have today, but that'll just add
• 22:05
  Speaker 11: to the experience over time.
• 22:07
  Speaker 6: I'm not thinking it's two hundred and forty nine dollars,
• 22:09
  Speaker 6: is that the asking price?
• 22:11
  Speaker 11: That's right, two forty nine for the silver and then
• 22:13
  Speaker 11: it'll be two ninety nine for gold.
• 22:15
  Speaker 6: Well, I've got so I'm already wearing an Ora ring
• 22:18
  Speaker 6: and I've already got some rings on some other things,
• 22:20
  Speaker 6: luckily thanks to my husband and sister. And they're like, so,
• 22:23
  Speaker 6: is your competition Aura and the health device or do
• 22:26
  Speaker 6: you encompass.
• 22:27
  Speaker 8: That space too.
• 22:28
  Speaker 6: Is your competition really what some Altman's now building with
• 22:30
  Speaker 6: Johnny Ive and the idea of future AI hardware.
• 22:34
  Speaker 11: It's a good question, and I think that what we're
• 22:36
  Speaker 11: offering today is pretty different than anything that exists so far.
• 22:41
  Speaker 11: It's really an input focused wearable device that's centered around
• 22:46
  Speaker 11: providing you control, and so I think that if you're
• 22:50
  Speaker 11: looking for that kind of an experience, hopefully we're providing
• 22:53
  Speaker 11: something special in the market. And in the same way
• 22:56
  Speaker 11: that I continue to, you know, use my iPhone and
• 22:58
  Speaker 11: I continue to use a lap top, we hope that
• 23:01
  Speaker 11: other devices will coexist with their own philosophies of how
• 23:04
  Speaker 11: humans and technology can relate.
• 23:07
  Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
• 23:12
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• 23:15
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• 23:19
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• 23:26
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