BYD Sales Soar, AI to Protect Kids Online, Airbus CEO on Defense Tech
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We are live from New York City. I'm Matt Miller. This is Bloomberg Technology. Coming up, U.S. CEOs including Tim Cook and Cristiano Amon are in Beijing as Chinese leaders prepare for tariffs that exceed expectations. Plus, BYD beats the Chinese electric vehicle maker posted more

full year revenue than Elon Musk's Tesla, even as it sold fewer cars and an exclusive interview with the CEO of Airbus live from the Airbus headquarters as the company looks to ramp up production of their next generation next generation jets. But

First, real focus on China. That country is hosting its annual development forum. Top executives are there, including Apple's Tim Cook, as we said, Qualcomm's Cristiano Oman in attendance. With plans to meet President Xi Jinping and other leaders, we've heard that Chinese Premier Li Cheng said, at this time, I think it's even more important for each of our countries to open up markets

and for all of our businesses to share their resources more. This is the world braces for US President Donald Trump to announce more tariffs on trading partners April 2nd, so about a week from now. Bloomberg's Mike Sheppard joins us for more. And Bloomberg, it seems like traders on Wall Street are more optimistic than leaders in Beijing. Why do you think there's that mismatch here?

Well, it could be that there is some of what we are hearing here in Washington hasn't quite filtered back to audiences there in the Chinese capital. But there is also the need for leaders in China to tell the public, to tell businesses there,

to brace for the worst. And it is also a way for them to say, hey, look, we have to get our act together domestically with our economy as well, especially if the worst could be coming. And they also know that even if traders here and journalists like ourselves are hearing that maybe this time around for the first round of this April 2nd tariffs, it won't be quite so bad.

things are still very fluid. And we even heard from a White House official this morning, our colleague Josh Wingrove, whose great scoop over the weekend added to some of that reporting on maybe things will be a little bit easier. He heard from a White House official who said, look,

Things are not decided yet. They're still pretty fluid. We may see those sectoral tariffs people are worried about, have been worried about. Those are the ones on chips and on autos and on drugs that may have been put into play earlier by Trump, may have been taken off the table by officials for now. But Josh's reporting is signaling that, you know, it is not a done deal yet. So, Mike, what are we then expecting? I mean...

I thought the idea was that whatever you charge us, we're going to charge you. So if Europe has 10% tariffs on autos, and we only have 2.5% tariffs on autos, we're going to raise our tariff to that level. Same is true on dairy products or meats. Really across the board, I thought the idea that President Trump was just going to charge them exactly what they charge us, and that keeps it, in his mind, fair.

Well, you know, you're right. He had been talking about tariffs really in kind of two lanes. One is this idea of reciprocal tariffs. We charge you what you charge us. Just as you kind of laid out, depending on the sector of the product, no matter what, they will find a way to kind of even things out the way the president likes to talk about it to keep it fair in his view. But they had also talked about measures aimed at whole sectors. And that did include computer chips. It did include pharmaceuticals and autosuggestions.

as well, yet the planning for that was not as clear. We have gotten signals though on the reciprocal tariffs front. It's interesting. We've also heard from Treasury Secretary Scott Besson who's tried to narrow perhaps the playing field of countries and goods

in categories that might be targeted. Last week, he was talking about the 15 worst offenders, for lack of a better word, where they would want to concentrate their energies first in terms of crafting these reciprocal tariffs. And of course, as we saw this morning with Trump announcing tariffs on other countries who buy oil and gas from Venezuela, really anything could be in play at any moment. So we really are sort of waiting a little bit

anxiously or nervously for whatever comes out on April 2nd and really trying to report that out ahead of time. Shep, thanks so much for joining us. Mike Shepherd there from our Washington, D.C. bureau. Now, check this out. BYD sales surpassed the $100 billion mark in 2024, actually over $107 billion, leapfrogging Elon Musk's Tesla on revenue. But the shares

as we saw, are not gaining quite as much as Tesla's, up about 6%. I guess it's better than a stick in the eye. But Tesla's up 10% today. It's biggest gain since November 11th. Let's get out to London right now and talk with our cars are Bloomberg's Craig Trudell. So, Craig, what is BYD doing differently than Tesla?

I think they've really had this very consistent playbook of we're going to give consumers a really broad range of vehicles. We're not going to be dogmatic about battery electric vehicles only. We're going to offer plug-in hybrids as well. I think the fact that we've seen as a sort of global trend, even in places like China where battery electric vehicles exist,

It's many multiples of what gets sold anywhere else in the world. Even there, we're seeing some slowdown in terms of the take-up of fully electric vehicles. And we're seeing a real acceleration in demand for plug-in hybrids. And BYD has been on the sort of leading edge there.

offering offering extended range electric vehicles which you know if you think back to sort of the Chevy Volt that General Motors brought out more than a decade ago it's it's you know sort of similar with that kind of technology where

you know, an engine is never directly powering the wheels. And, you know, their ability to offer, you know, both plug-in and hybrid and fully electric vehicles at extremely affordable prices has allowed them to achieve scale that, you know, Tesla can only really dream of at this point. I know...

Jim Farley, for one, is pumped about those e-revs. So having an engine on board that simply powers the battery and doesn't power the wheels. We'll start seeing those come out of Detroit soon, I think, as Dodge is going to put out a truck, an e-rev truck. Craig, what about the money being raised in China? I noticed that BYD has raised more than $5 billion.

billion dollars in the secondary offering I see that Xiaomi is looking to raise more than five billion dollars in the secondary offering I mean coming from a New York perspective where IPOs are not on hold but fairly slow Hong Kong looks like it's absolutely on fire this just helps the Communist Party to power ahead on EVs in a way that it's not possible for us to do here in America

I think that's absolutely the right read. I mean, we did see, you know, a few years back Tesla raise at an incredible rate, you know, when they were really sort of getting their momentum with the Model 3 and the Model Y. You know, I think Tesla went from being this company that was really struggling to sort of stand on its own two legs

and they really sort of achieved escape velocity and in the process of doing so tapped Wall Street for an awful lot of money. We also did see a real sort of active environment for when you think back to the likes of Lucid through the SPAC market or Rivian through an IPO. So I do think that we did sort of go through this spurt

of activity in the US, but to your point, we're seeing this with Xiaomi, we're seeing this with BYD, I think I would add to that even CATL as well, looking to do a second offering in Asia. So we're seeing a real acceleration of these major players in that space, raising an awful lot of money, even by terms of big automotive companies that are very cash hungry.

Craig, great to get some time with you. Thanks so much for joining us. Bloomberg's Craig Trudell. Our cars are his covered cars from Tokyo, from London and from Detroit. Coming up, the CEO of identity protection app Aura and its investor Jeff Katzenberg join us to talk about Aura's new AI powered tools aimed at protecting youth mental health.

By the way, I'm also watching shares of SAP, the German software developer in trading today, right now up 1.5%. And right now, the largest company in Europe by market cap with this growth. This is Bloomberg.

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As parents look to keep their kids safe online, identity protection firm Aura has released new AI tools to track youth mental health that comes on the heels of the startup's $140 million Series G funding round. Aura's CEO Hari Ravichandran and the company's biggest investor Jeffrey Katzenberg, managing partner at WinderCo, are here with me and I appreciate you guys joining me on this topic which

you know, I think finally is getting the attention that it deserves, the damage that social media and technology do to the mental health of our children. Jeff, let me start with you and ask, what brought you to this investment and what sort of put you on this path? Love it. So I spent 40 years in the media and entertainment business at the Walt Disney Studios and at DreamWorks and every day got up and

was in the world of bringing to parents, moms, dads, and kids safe content and the appreciation of what that means. Today, keeping our kids safe has actually never been more challenging or more complicated because of these devices and the online lives that we have. When I parented my kids, there were three things I wanted to know. Where are they?

What are they doing and who are they with? And today, they could be sitting, your kid could be sitting across you at a kitchen table with a phone in their hand, and you cannot answer those three questions. As you said, there is actually just a growing epidemic of how damaged and damaging we are doing to our kids today, this generation. It's extraordinary. And I'll read you a few stats just to frame how big the problem is.

So 20% of adolescents report low self-esteem. 52% have experienced or are experiencing an eating disorder. 70% of teens say anxiety and depression is a major part among their peers. And a shocking 25% have ideation disorder.

around suicide. So this is just... We're destroying our kids. And what Hari has done as the founder of this is through his own personal experience, which he should tell you about, dealing with his own family, got on this mission two years ago to say...

He built a company in which he has brought security for families online. Now he's going to bring safety. Johari, tell us about your experiences before...

starting this company and then how are you solving the problem? Yeah, no, no, happy to. I have four kids and so one of my kids about two years ago was going through a really tough patch whether feeling depressed, feeling down, some negative coping strategies which was very frightening to us as a family. And so leading up to that, you know, we're a pretty tight-knit family. You know, we spend time together, ask her how she's doing, she says, "Oh, everything's fine." And then as we're kind of going through the recovery cycle,

We asked her how she's doing, she says, "I'm doing fine." And so as a parent, you wonder, well, she's saying the same thing, is she actually fine or not? Right? And so then we started looking around for tools because the one thing I do know during that journey when we were super privacy oriented, we never gave, you know, never spent time on the kid's device or anything like that. During the journey we did spend some time on the device and there were things there that I wish we'd kind of found earlier because we might have been able to help her sooner.

And there really weren't any tools. There just wasn't anything to actually go do this in a systematic way. And we already were helping a lot of families with content, problems, et cetera, that their kids had. This was a natural entree for us and, frankly, it's a tool that I needed for my own kids. So I figured there's lots of families that can also use the same technology as well. Jeff, how do you deal with this in your family? I mean, we've heard from recently Kate Winslet,

who said her method is just to ban all social media for her children. You can't. You cannot. It's an impractical thing. And so what you need to do as a parent is you need tools, you need insights in order to be able to navigate and help your kids navigate through these challenges.

And what you need for a 12-year-old or a 13-year-old is quite different from what you need for a 16-year-old or a 17-year-old. And what Aura has created and is delivering is not spying.

It's about giving you the parent insights, giving you enough knowledge. You can still give your kids a lot of leeway and a lot of privacy. We're not reading. You as a parent are not going to read their text because if you do that, they're going to find a way to get off this and get around it. They actually want some help. They want some guidance. We hear that from our beta, from the kids that are on it today. And so...

The analogy I would give you is that when your child turns 16 years old and gets a driver's license, you don't send them out on a highway doing 65 miles an hour without practice, coaching, and some experience and time. Why would this be any other different? Why should this device, why should you be out there in that world, in the wilderness, with no guidance, no help?

And parents right now are really, really struggling with this. And it's why, frankly, you know, I'm so proud to be on this mission with Hari because I think he's created something that's gone from a nice-to-have to something that's actually essential. We hear it all the time. Parents are just desperate for help. Is it an arms race, Hari? I mean, have you found a solution that will work forever, or do you have to continually develop those tools as parents?

you know, social media continues to develop. - It's always an innovation run. I mean, you're continuously trying to stay out in front because people do catch up from behind, both in terms of, you know, social media companies changing strategy, et cetera, but also because the competitive side, especially with the AI revolution, building things have been easier than ever before. So you have to build moats and go to market.

avenues in other areas beyond just technology. You have to keep evolving the tech as well and finding more and more use cases, but you have to do a lot more than that anymore, especially with AI making things so ubiquitous. Can you work with other social media companies? I mean, Jeffrey Katzenberg, you must know some of these executives who run Facebook or Twitter.

Can't they be helping as well? It's a problem that they should be aware of. Maybe they can, but they have their missions they're on. And I want to be clear, not all social media is bad, right? There's been incredible, incredible values that have been created in terms of community and communications and knowledge and just extraordinary access that we have and this new generation has with these tools in it. And so...

This is a byproduct of it. The rabbit holes, the deep, dark rabbit holes that, you know, one can go down or get sucked down into in it. And we're not here pointing fingers at anybody. What we are doing is we're creating a solution. And frankly, I would think those companies would be thrilled with this solution. And, you know, it comes out of a... These things you use, in my opinion, and certainly my experience matters, they come out of a person...

with enough technical and experience and knowledge in an area who suddenly comes upon a mission.

And Hari, from his own personal experience with his own family, has been mission-driven for the last two years. And I think that's what has created something that is so invaluable and practical and of the moment in time. Well, I appreciate you both coming by to talk about this. It's an issue that Bloomberg is focused on as well. So very important to, I think, all of us, certainly as parents. Thanks very much, Jeffrey Katzenberg and Hari Ravichandran of AllSports.

Now, I have breaking news on the Bloomberg right now. Xiaomi is said poised to raise $5.5 billion in an upsized share placement. The last we spoke, they were looking to raise $5.3 billion in this secondary that was fully subscribed. It looks like it may have been oversubscribed, and now they could raise more. Nonetheless, Xiaomi shares intraday are down 1.3%. ♪upbeat music♪

Take a look at strategy and Bitcoin, both rising today. When I say strategy, of course, I mean Michael Saylor's rebranded MicroStrategy bought $584.1 million of Bitcoin after the company raised more than $700 million last week from the sale of perpetual stock. For more, Bloomberg's David Pan joins us now in studio. David, I guess it's...

Semi-interesting, right? At least in terms of the way they raise money. What is perpetual stock? So it's like a debt-like capital raise. You know, it's a little bit different from the vanilla convertible bond raises before.

I think it's just the latest design of strategies effort to tap into all different kind of levers to raise capital by even more Bitcoin from now on. So, and that's all that strategy basically does, right? They have a small business on the side. What is it, like a software business? Right, it's an enterprise software business used by a variety of companies, including McDonald's, you know.

it had a more meaningful significant cash flow before but compared to the sheer size of bitcoin holding and and you know the gains from the bitcoin holdings and now it's less and less significant on the balance sheet yeah it seems to me um this company is all about the bitcoin holdings bitcoin is up today um it looks like just with the risk on mood of the market has there been any

reversal of that correlation or is that just how Bitcoin trades? I think typically when we're seeing, you know, like Bitcoin going down, there tends to be stronger correlation with the stock market. That's just a historical trend over there. So we are seeing actually, you know, macroeconomic factors are playing a

way more important role in terms of Bitcoin prices. And, you know, despite a lot of the positive events in the past few weeks, like Crypto Summit and stablecoin bills and those kind of events haven't been having any

big positive impact on the bitcoin prices uh you know compared to the macro uh micros if the government doesn't actually go out and buy new bitcoin for a strategic reserve then that's not as positive as maybe it would have been before david thanks so much for joining us bloomberg's david pan

Welcome back to Bloomberg Technology. I'm Matt Miller in New York. Taking a look now at a fund using an AI-powered model, which is warning against buying AI stocks. The fund has returned 26% annually in the past five years, so maybe one you want to listen to. Bloomberg's

Isabelle Lee has that story. Isabelle, what are we talking about? Hey Matt, we're looking at a fund that's overseen by Daniel Maher. So it has outperformed most of its peers 99% in the past five years and even its benchmark Russell 3000. So it's underweight a lot of the big tech companies because he said that they're still volatile. And even the $2 trillion sell-off we saw the past weeks haven't made these companies cheap. He still finds them expensive. He still finds them having frothy valuation.

and he still finds them volatile in the past weeks and in the years to come. And he said that he is preferring other sectors. His fund is sector neutral. He has around 170 security selections. And the thing about his fund is it's

It has a decision tree analysis, which I just recently learned about, and it mimics human thinking. So that's really what sets his fund apart. So why doesn't he like tech stocks? Why doesn't he like AI, which has delivered such fantastic returns, certainly on the mega cap side, over the past couple of years? He said they're volatile and they have frothy valuations. And the thing is, he's still invested in them, but he's just underweight. And interestingly, he said he calls it, quote, risk management. We know that active managers have really outperformed investors.

the passive investment in the past few years and it's really hard to beat the Magnificent Seven. But it's interesting to see funds like these because he still outperforms even if he's not just all in on this big tech stocks. He also said that he doesn't really try to follow fundamental news even with this whole headline driven markets with tariffs and everything. He said he doesn't want to have any binary outcome. What he's just interested is in the fundamentals of the stock, not anything we hear in the headlines and that's why he's underweight all these mega cap tech stocks.

Does he have any discretion in this fund? I mean, it's not...

set parameters from a program. It's a purely quant fund. It uses decision tree analysis. So the way it works is there's a branch. So you answer yes or no, you use factors like momentum, economic mode. And then the interesting thing about this is most quant funds have like a black box system and you really don't know how to spit out that certain stock. With him, you can see the rationale because of the factor-based decision tree model. And he really almost never tries to insert his discretion

other than the fact that if there's like a wrong input when it comes to data, but then other than that, he follows the quant model too hard. And he's been doing it the past 20 years. All right, so he does stick to those perimeters and it does not hurt returns apparently. Isabel, thanks very much. Bloomberg's.

Isabel Lee. Now, startup acquisitions have kicked off 2025 with a boom, as evidenced by last week's $32 billion Google deal for cybersecurity firm Wiz. Here with more on the M&A landscape is Bloomberg's Katie Roof. She joins us now here in studio at 731 Lex. Good to have you on this side of the continent. So, M&A...

overall has been kind of a snooze this year compared to what we were expecting but in your corner of the universe which is venture capital and startups it's been on a tear. Yeah exactly so we set a record for dollars partly aided by Wizz but we've actually already tied the quarterly record in terms of we've had 11 billion dollar plus sales startup sales and so we've got a week left

And part of this is driven by perception that Trump will be better for regulation. Obviously, there have been mixed comments on that, but that did play a role with Wiz. They turned down the offer from Google last year because they were worried about the administration blocking deals, and so they're hoping that this time will be better. But there's also other factors. There's also market volatility, partly due to the tariffs, actually may have played a role.

According to one banker, I quoted Dave Chen in the story, and he oversees Morgan Stanley's tech banking. He said that startups are saying that the volatility makes them more likely to sell because they're worried about IPO. Yeah, volatility is another word for drops, I've learned. We've seen a correction, obviously, not only in the tech sector, but in the broader market. Does this maybe mark a bottom? Could we see a turnaround from this point?

Well, it's, you know, there's a lot of things at play here. So I think in terms of IPOs, we're looking at maybe up to eight venture-backed IPOs in Q2, which is more than we've seen in a few years. But right now there's a thousand unicorns. There's a

venture-backed private companies that have yet to exit so they need to either IPO or get acquired and so even with the 11 startup sales and maybe the 8 venture-backed IPOs coming up we're not even close to what we need for liquidity in the ecosystem. So I guess that means this is going to continue or we're going to continue to see record M&A in startups?

Possibly. I think especially if they feel that the bar has gotten pretty high to IPO and that, you know, the market conditions aren't perfect for IPO the way they were in 2021. We may see, you know, some taking that bird in hand, even if it wasn't their dream price. All right, Katie, thanks very much. Bloomberg's Katie Roof talking to us about startup M&A. Coming up, an exclusive conversation with the CEO of Airbus. Guillaume Fury joins us. This is Bloomberg. ♪

♪

The world is built on code. From the apps we use every day to the systems powering industries, developers like you are the architects of tomorrow. But let's be real. The road to innovation can get a little tricky. You need the right tools to move fast, but you also need a community to help you go further. That's where Microsoft comes in. Microsoft has the tools to help you move at lightning speed, like GitHub Copilot, VS Code, and a ton of AI resources to keep you on the cutting edge.

But here's the best part. You can build with confidence, knowing that Microsoft security and compliance are already taken care of. No more worrying about vulnerabilities or threats while you focus on your craft.

This is Rob Parker from The Odd Couple with Rob Parker and Kelvin Washington. The Toyota Tundra and Tacoma are designed to outlast and outlive. Come on, let's go.

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Welcome back to Bloomberg Technology. I'm Guy Johnson, taking over from Matt Miller for the next few minutes and taking you here to the Airbus headquarters in Toulouse, France, where cutting-edge technology is a day-to-day activity. We're at the Airbus Summit, where we're discussing everything from sustainability to hydrogen to what happens with the next generation of aircraft and the technology that is going to go into them. And I have the great pleasure of being joined here by Guillaume Fauré, the CEO of Airbus.

of Airbus. Guillaume, fantastic to be with you here at this summit at Airbus's home here in Toulouse.

The summit we're at at the moment, the big focus is sustainability. A lot of technology is currently being pushed into this space as we try and make aviation technology. The big technology that we're talking about is sustainable aviation fuel. That's going to do a lot of the heavy lifting, but hydrogen and all kinds of other technologies beckon in the future. The target we have right now is to make aviation net zero carbon by 2050. Is that still achievable?

It remains the target and there are plenty of reasons to believe that it can be achieved. There are also some challenges. One of the reasons we have the summit, the ABUS summit, is to discuss those topics, to understand better the problem, what goes well, what needs to be...

done differently. At Airbus we remain committed to the 2050 objective of carbon neutrality. That's what the industry has agreed together. And tomorrow we will be sharing a lot of good news on the progress. We know that on the sustainable aviation fuel, that's a challenge and we need to do more work on it. Is it going to be possible with Donald Trump in the White House? He doesn't seem to see the United States as

at the forefront of green technology. In fact, he's going in the opposite direction. Can 2050 be achieved with Donald Trump in the White House? Well, the progress we need to make to decarbonize aviation by 2050 relies on different pillars. One of them is the planes, the planes themselves. That's what we're doing. And for planes, competitiveness means fuel efficiency.

and fuel efficiency means sustainability. So the two objectives are aligned. I say economy and ecology are aligned. So we keep going and airlines will continue to buy, preferably planes that burn less fuel, whatever the fuel. For the development of SAF, it's a bigger challenge. It's important to have unity. We need a global level playing field on SAF. And obviously we need to understand better what did we mean for the US and to what extent the others will keep going at the same pace. What should Europe go to learn?

Well, anyway, we see different dynamics in different places of the world. Europe has gone quite alone on the FIT for 55, putting mandates on the use of SAF. It's a different way. It was already a different way with the previous US administration with IRA and subsidies.

for South and China is going also another way. That's one of the problems. We need this to be unified. You just come back from China. What did you see there? What kind of technology? Are they going to once again leapfrog in the way that we've seen maybe them doing in electric cars? I think they are really serious on the transition. They are really serious on...

decarbonized energy from the use of solar, of wind, of nuclear. They grow. I think half or two-thirds of the additional capacity of decarbonized energy last year was coming from China. So they're really moving forward at the right pace. And yes, there is a likelihood that they would...

go faster than others on decarbonized technologies with the risk that we would see in aviation, in fuels, what we see today in electric cars. So we're really taking them serious, but as also a partner, we can rely on for the development of SAF. Let's talk a little bit about what is happening here in Europe. It seems at the moment that security is more important to Europe than sustainability. Do you see it that way? Is that how it is developing? I don't think it's more important. I think it's a precondition.

You need security to have prosperity, and you need prosperity to fund your climate transition and your decarbonisation. So security comes first. And that's what we're looking at and what we're seeing in Europe. I don't think there is competition between the different investments, at least at the moment.

at least for Airbus. We have different businesses. We have a strong balance sheet to fund the different investments. But yes, there is more that will go to space, to defense, than there was in the past. And that's an opportunity for us because we think it's important for the security of Europe. You talk about space. One of the key pieces of technology that Europe is relying on at the moment that's being used heavily in Ukraine is obviously Starlink. How quickly can Europe replicate something similar to what we see with Starlink? Starlink is clearly a breakthrough.

The constellation is already large in the air. We have constellations in Europe that are flying already, but they are much smaller. So we need demand at scale. We need countries to come together with a common need, and we need industry to come together to supply. So Europe needs scale. In terms of technologies, we have very similar technologies, but it needs to go into a project at scale.

How quickly can you do that? Well, it's going to take a bit of time. We are moving as fast as we can. We have indicated that we are in discussions with Leonardo, our friends from Leonardo and Thales, to create a joint company for satellite manufacturing. Can I think about that as an Airbus of space? Is that what we're talking about here? It is an Airbus of space. It is a joint venture between companies, so that's probably a bit different, but that's creating the scale in Europe.

to be able to be competitive on a global scale. Can it do the same thing in defence? It has to be done. It's going to be probably more difficult because the sovereignty for security and defence is at the level of nations, of countries, and we need countries to come together with common projects to create that scale and then having the industry serving...

these projects at scale. But we're too fragmented in defence in Europe. That's very clearly written in the Draghi report. It's something that is now acknowledged. We need to find the solutions. So in terms of how you're thinking about how you develop Airbus from here, over the last few years it has been civil focused. Do you see space defence becoming...

similar scale arms of Airbus? People have often talked about defence being subscale at Airbus. Is that going to be the future? Is the defence arm going to be subscale? Is space going to be subscale? How quickly can you get it to scale? And will it be something similar to what we see behind us in the civil side? We are not only an Airbus in commercial, we are also an Airbus in defence and in helicopters.

We have created the scale in helicopters already in the past and we are the number one helicopter manufacturer in the world by turnover and by number of helicopters. So that's something we are doing in other areas of business than commercial. Yes, we are also an Airbus in defense with projects like the Eurofighter, with projects like the A400M, where European countries

partner together to create a product that is the best in the world at the moment. But we need more of this. And it is the DNA of Airbus to bring collaboration, to bring partnerships, and to create a project that has the right scale, and therefore the right scale of investment, and therefore the right competitiveness. Do you think Donald Trump is bringing Europe together? Do you think it's going to happen? Europe relies on a crisis. Is this a big enough crisis to bring...

Europe is making progress through crisis. We are challenged by a number of things changing in the world. The fact that Europe needs to take security and defense in its own hands is something that, in my view, really makes sense. And that's what Europe is doing under a number of pressure points. Ukraine is one of them, what's happening in Ukraine. And also what Donald Trump wants to achieve is another pressure point on Europe to take its destiny in its hands.

Donald Trump talks about his favorite words being terrorists. What do you expect in terms of terrorists? How already is it impacting Airbus? The aircraft behind you, the A321XLR, comes from around the world. We were joking earlier, the nose comes from France, the engines come from America and France. The aircraft is an aircraft of the world, but that creates vulnerability. How are you thinking about terrorists? What has the impact been already?

Well, that's an important point for industry. We had tariffs on aircraft four to five years ago between the US and Europe and has been a lose-lose. Therefore, we had a ceasefire in 2021. And I think this experience has been interesting in showing that for a sort of North Atlantic ecosystem, both sides of the Atlantic,

and there's only lose-lose in putting tariffs. We have not heard about tariffs on aviation at the moment, on aerospace. Are you preparing? I think that's a good sign. There's nothing more, I would say, really, to prepare than to communicate, to exchange, to explain. We have a lot of infrastructure and manufacturing capabilities

final assembly line in the US. We are procuring from the US, we are selling to the US, and the US manufacturers are doing the same with Europe. So tariffs in the middle of the Atlantic would really be a big burden for both sides, and maybe that would be even tougher for the US manufacturers.

Have you been putting extra resources into the Alabama plants? Have you been stockpiling? There's no kind of preparations or anything that you have been taking on thus far in order to get ready for something that could be coming. No, we keep doing what we've been doing so far, relying on Alabama indeed.

That's a plant where we have three final assembly lines. One is not yet delivering planes, but the two others are. So we are procuring from everywhere around the world, assembling there in the US with US jobs, to US airlines as well. So I think we are key to the US ecosystem, to the aviation ecosystem. And we think that plays a big role in how tariffs are targeted.

Okay, final quick question. You sit on actually the business council in America. You speak to CEOs there. What message did you take to them from Europe? What is the message that should be coming to A, U.S. business, and B, the U.S. administration? Well, at the moment, I think there's a lot of questioning of where all this is going, what it will mean for which industry. It's a bit on wait-and-see mode to understand better for how long tariffs could come, and

who will be impacted, how to respond to the tariffs, if any. As I told you, we are not directly targeted with tariffs at the moment. But indeed, there is a lot of questioning and to understand better what is changing and how to adapt. We are in a world that is fast changing, and it's a lot about adapting to those changes. Guillaume, it's great to be here in Toulouse. Thank you very much indeed for inviting us here to Airbus' headquarters in Toulouse in France. Guillaume Faury, the CEO of Airbus.

Apple is exploring the idea of adding cameras and visual intelligence features to its smartwatch, thrusting the company into the AI wearables market. Bloomberg's Mark Gurman joins us now for more. So, Mark, what do you know these developments? Yeah, thanks for having me. Over the past year and change, companies have been trying to see if they can meld AI with hardware. We've seen failed attempts like the Humane AI Pen. We've seen bigger splashes like the Ray-Ban smart glasses from Meta.

And what these have in common is they have cameras and microphones. And why do you need cameras and microphones? Because to really take advantage of the AI, you need to have a solid understanding of your surrounding environment. And so what Apple wants to do now is bring cameras to its wearables. So they're working on new versions of AirPods as well as new versions of both of its Apple Watch models that add cameras in order to have a better idea of the outside world.

One thing you're looking at now is adding cameras to the Apple Watches. And so what that would entail is pointing your Apple Watch at something and then that pulling up the visual intelligence feature they added to the iPhone 16 models last year. You can basically scan a poster, scan a plant, scan anything, and it'll tell you what it is using ChaiGPT or Google Search. And so the idea here is for Apple to eventually convert its models to have that capability to do that instead of OpenAI and Google.

But the bigger picture here is adding cameras to as many devices as possible in order to get people to upgrade, but mostly in order to tap into its artificial intelligence offerings. Hey, Mark, I use ChatGPT a lot, and I talk to it. It talks to me. It's pretty helpful, fun conversations. I try that with Siri, and it just doesn't work as well. When are they going to make real advances with their AI assistant?

It's going to be a while. At this point, my belief is that they're not going to have anything significantly new or really powerful until 2027. So we're about a few years away. And, you know, as I wrote last week, they're shaking up their management of Siri. They've actually removed Siri from the oversight of their head of AI, right, which tells you pretty much everything you need to know. And they've moved that into their software engineering organization. And they put the guy who created the Vision Pro in charge of it.

All right. Thanks very much. Always great to talk to you. Wish we had more time. Bloomberg's Mark Gurman there talking us through all things Apple. That does it for this edition of Bloomberg Technology. Don't forget to follow our or check out our podcast. You can find it on the terminal as well as online on Apple, Spotify and iHeart. This is Bloomberg.

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