WEBVTT - China Fights Tariffs with Tariffs

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<v Speaker 1>From the heart of where innovation, money and power collide

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<v Speaker 1>in Silicon Valley and beyond. This is Bloomberg Technology with

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<v Speaker 1>Caroline Hyde and Ed.

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<v Speaker 2>Lovelow live from New York Home Caroline Hyde.

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<v Speaker 3>And I'm Jackiet Devowls from San Francisco. This is Bloomberg

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<v Speaker 3>Technology coming up.

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<v Speaker 2>China retaliates with its own tariffs on the United States,

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<v Speaker 2>including a probean to Google plus Pallanteer sauce to a

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<v Speaker 2>new recorder's earning show. Untamed growth for its AI software

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<v Speaker 2>and Spotify shares also surged to a record offer its

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<v Speaker 2>first annual profit. And we start there with a markets

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<v Speaker 2>check amid all the record highs in earnings. Let's get

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<v Speaker 2>to it with the NAZAC currently making up for yesterday's

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<v Speaker 2>sell off. Jackie, we're currently up more than a percentage

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<v Speaker 2>point at the moment, and in terms of points contributed,

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<v Speaker 2>it's all about Palenteer. Move on and have a look

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<v Speaker 2>at what the fundamentals and certain businesses are doing to

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<v Speaker 2>this index. Valenteer up twenty six percent, a new record high.

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<v Speaker 2>This as we see untamed organic growth. When it comes

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<v Speaker 2>to AI. They win on commercial, they win on government.

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<v Speaker 2>We'll get to it later in the show. Spotify also

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<v Speaker 2>add a new record up almost ten percent as they

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<v Speaker 2>add to their growing monthly active users, and also the

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<v Speaker 2>first profit ever in terms of an annual profit. They're

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<v Speaker 2>going to continue that out for that up to two

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<v Speaker 2>and a half percent. Look, they're coming with their earnings

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<v Speaker 2>after the bell all lies on thirteen percent increase in revenue.

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<v Speaker 4>Will get to the earnings in a bit.

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<v Speaker 2>But this is also an anti trust investigation story from China.

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<v Speaker 4>This is we see China.

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<v Speaker 2>Retaliate to the tariff potential coming from the United States.

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<v Speaker 2>We anticipate a call between Shujimping and Trunk coming soon.

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<v Speaker 2>But let's delve into the tech implications. Bloembags Mike Shepherd

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<v Speaker 2>is with us in Washington, and look from a search perspective,

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<v Speaker 2>Google's not there in China, but Android.

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<v Speaker 5>Is, Android is, and Caro. You have to think of

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<v Speaker 5>this also in terms of symbolism as well. Shuchimping is

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<v Speaker 5>trying to send a signal to Washington that hey, I

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<v Speaker 5>can retaliate too and try to make it hurt by

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<v Speaker 5>targeting individual companies. So by going after Google with this

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<v Speaker 5>anti trust probe, Look, the search is not really a

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<v Speaker 5>factor in China, where it really hasn't been operating since

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<v Speaker 5>twenty ten, but the company does have some advertising, sales

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<v Speaker 5>and engineering work done there. It does have three offices

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<v Speaker 5>in three different Chinese cities, so it's not a zero factor,

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<v Speaker 5>but it is a signal that other US entities, perhaps

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<v Speaker 5>Apple and perhaps Intel. We saw the Financial Times reporting

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<v Speaker 5>that officials in Beijing were weighing whether to conduct a

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<v Speaker 5>fuller probe of Intel as well. And also, as you

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<v Speaker 5>and I have talked about before, there is the Nvidia

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<v Speaker 5>anti trust probe being conducted by officials in Beijing, and

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<v Speaker 5>this is over that long ago acquisition by Nvidia of Melanoch.

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<v Speaker 5>So they are trying to send a signal with this

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<v Speaker 5>Google anti trust probe as much as anything else.

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<v Speaker 3>Mike, as you mentioned, there's also an Nvidio probe, So

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<v Speaker 3>this isn't the first time that Chi Jimpang is using

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<v Speaker 3>a probe like this to retaliate in the past, have

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<v Speaker 3>you seen it be an effective negotiating tool.

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<v Speaker 4>Well, we're going to.

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<v Speaker 5>Find out now whether it works in real time with

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<v Speaker 5>Donald Trump, because under the Biden administration it was one equation,

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<v Speaker 5>but under Donald Trump it's a very different one and

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<v Speaker 5>he may not be looking at this as such a

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<v Speaker 5>dangerous signal. Even after having met with Jensen Wang last week,

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<v Speaker 5>it may not be as big a concern. Really, what

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<v Speaker 5>we're looking for is the broader negotiation that is going

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<v Speaker 5>to happen in April. This is really just sort of

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<v Speaker 5>the opening round in the conversation between China and the

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<v Speaker 5>US on trade. The President has ordered US President has

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<v Speaker 5>ordered a review of the Phase one trade agreement that

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<v Speaker 5>he forged at the end of his first term, and

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<v Speaker 5>we're going to hear more about that in April. So

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<v Speaker 5>this is just sort of the warm up act to

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<v Speaker 5>a bigger conversation. And remember Donald Trump has talked about

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<v Speaker 5>imposing tariffs of up to sixty percent additional tariffs of

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<v Speaker 5>up to sixty percent on Chinese goods, and that would

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<v Speaker 5>really hurt Beijing, which is focusing on its exports to

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<v Speaker 5>the rest of the world as a way of reviving

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<v Speaker 5>in domestic economy.

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<v Speaker 3>Bloomberg's Mike Shephard, thank you, and as Alpha that faces

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<v Speaker 3>a Chinese probe, the company is set to report results

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<v Speaker 3>today after the closing bell. For what we can expect,

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<v Speaker 3>Bloomberg's Ryan les Stelica joins us Now. Ryan when it

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<v Speaker 3>comes to Google, there's cloud, search and artificial intelligence as

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<v Speaker 3>of late, what's tep of mind for investors going into

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<v Speaker 3>this report?

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<v Speaker 4>Good afternoon.

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<v Speaker 6>I would say that probably the cloud business is probably

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<v Speaker 6>what people are most curious about right now. We did

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<v Speaker 6>get Microsoft results last week. There were sort of a

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<v Speaker 6>mixed bag. They were growing a little bit slower than expected,

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<v Speaker 6>but that's partially due to some supply constraints. So, you know,

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<v Speaker 6>cloud has become increasingly important to alphabet and I think

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<v Speaker 6>people are curious to see what growth looks like there.

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<v Speaker 6>We also got Meta results last week which painted a

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<v Speaker 6>pretty good picture of the market for online advertising, So

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<v Speaker 6>it seems kind of safe to assume that a Google

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<v Speaker 6>search will be at least pretty strong as well.

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<v Speaker 2>Any response to deep seat mentioned, do you think.

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<v Speaker 6>Ron, I'm sure they'll address it. It's a sort of

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<v Speaker 6>an interesting position with respected deep seek. If you know,

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<v Speaker 6>they do find a way to make their own AI

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<v Speaker 6>model more efficient, more cost effective, that's probably going to

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<v Speaker 6>be great for the stock. It's probably going to be,

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<v Speaker 6>you know, something that's cheered on Wall Street. But it

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<v Speaker 6>seems like so far, while it did see a little

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<v Speaker 6>bit of volatility last week when the you know, the

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<v Speaker 6>big sell off happened and impacted everyone in tech. It's

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<v Speaker 6>really come back strongly since then.

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<v Speaker 4>It's trading at a record right now.

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<v Speaker 6>It's been able to brush off a lot of issues

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<v Speaker 6>that you think would take down a stock like this,

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<v Speaker 6>not only the regulatory and antirut trust stuff out of China,

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<v Speaker 6>but also here in the United States.

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<v Speaker 2>I like that you note that shares are at a

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<v Speaker 2>record high round less selica. We thank you. You got MD

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<v Speaker 2>after the bell as well. There's a lot to get

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<v Speaker 2>to from more market perspective. Let's bring in Fiona Scottish,

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<v Speaker 2>a senior analysta City Index Financial Markets.

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<v Speaker 4>Let's just stick with earnings.

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<v Speaker 2>For a moment, because've got record high as a bound

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<v Speaker 2>on the back of certain earnings today, and we look

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<v Speaker 2>towards Alphabet and AMD. What are you looking to in

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<v Speaker 2>terms of generative AI sort being a winning formula for

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<v Speaker 2>these companies or not.

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<v Speaker 7>I'm continue to way I think we have.

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<v Speaker 2>A technical issue there. We're just going to bring her

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<v Speaker 2>volumes up a little bit more for you. So we

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<v Speaker 2>spend just a moment just anticipating what Fiona is going

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<v Speaker 2>to be delving into in terms of generative AI. The

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<v Speaker 2>focus on Alphabet whether or not AMD can steal any

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<v Speaker 2>of the market share from in video in terms of

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<v Speaker 2>its offering to data centers and servers, and Jackie, I

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<v Speaker 2>think we can also be anticipating what all of the

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<v Speaker 2>trade tariffs and geopolitical anxiety is currently having on the markets.

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<v Speaker 2>Let's go back to Fiona, now, I think we fix

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<v Speaker 2>your technical issues, just talk about earnings and fundamentals first.

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<v Speaker 8>Yes, that's right.

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<v Speaker 7>You know, I think AI is still going to be

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<v Speaker 7>very much and it is still very much are focus

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<v Speaker 7>as far as earnings are concerned. You know, we know

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<v Speaker 7>that the investors are still looking to see whether these

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<v Speaker 7>huge investments that we've seen are going to be bringing returns,

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<v Speaker 7>are going to be bringing in new revenue streams and

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<v Speaker 7>stronger revenue streams, and that I think is what's sort

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<v Speaker 7>of helping to keep these stocks at these record levels.

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<v Speaker 7>There is still a lot of optimism surrounding what the AI,

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<v Speaker 7>what AI can do for these stocks, and you know

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<v Speaker 7>the prospect of potentially those costs coming down in the future. Again,

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<v Speaker 7>I think that's a positive as far as users of

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<v Speaker 7>AI can be concerned.

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<v Speaker 3>Fiona, I'm curious if there's a divergence between some of

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<v Speaker 3>the software names and hardware names, especially as we're seeing

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<v Speaker 3>geopolitical tensions play out in the forum of tariffs, that

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<v Speaker 3>could take a bigger hit to chip makers for example.

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<v Speaker 7>Yes, you know, it's a really good point, and we

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<v Speaker 7>have been noticing that, and I think that's something that's

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<v Speaker 7>going to be very much forefront as we get through

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<v Speaker 7>these earnings as well. Is you know, what is the

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<v Speaker 7>outlook as far as some of those chip stocks are concerned.

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<v Speaker 7>What is the prospect of exports and tariffs being placed

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<v Speaker 7>on them, export limitations which could make the outlook for

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<v Speaker 7>those chip socks a little bit more complicated them. Whereas

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<v Speaker 7>the sort of more software firms, I think they have

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<v Speaker 7>the potential to have a little bit more freedom as

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<v Speaker 7>far as their outlook is concerned, and potentially could benefit

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<v Speaker 7>from the outlook even as we see trade tariff's discussions

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<v Speaker 7>in the market.

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<v Speaker 3>One of the things I'm curious about is in this

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<v Speaker 3>new administration, many think that it's going to be pretty

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<v Speaker 3>friendly when it comes to the Federal Trade Commission. What

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<v Speaker 3>do you think that bodes for technology?

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<v Speaker 7>Yeah, you know, if we do have a sense that

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<v Speaker 7>they're sort of reduced regulation, we know that that could

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<v Speaker 7>be really beneficial for technology, and I think it's a

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<v Speaker 7>really interesting idea, especially when we're considering, you know, what

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<v Speaker 7>regulation there might have been with regards to big tech,

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<v Speaker 7>what regulation they could be with regards to this idea

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<v Speaker 7>of AI as well. I think still very much an

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<v Speaker 7>open subject of where regulation may have been, but the

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<v Speaker 7>fact that we could be looking at a future at

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<v Speaker 7>least for the next few years of decreased regulation is

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<v Speaker 7>definitely a positive for many stocks in the tech area,

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<v Speaker 7>but also could be outside of the tech area as well.

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<v Speaker 4>What are the.

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<v Speaker 2>Names fear and that you've been fielding the most cause on.

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<v Speaker 7>Oh, that's a good one, you know. I think obviously

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<v Speaker 7>Navidia and Vidia has been hugely in focus because of

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<v Speaker 7>those levels of volatility that we've had. We've also seen

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<v Speaker 7>Tesla has always been very popular among our clients as well,

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<v Speaker 7>But heading towards this week, Amazon and Alphabet are the

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<v Speaker 7>names that have been up there with our clients. You know,

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<v Speaker 7>we do see this big focus on the Magnificent seven

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<v Speaker 7>and their ability to be able to sort of continue

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<v Speaker 7>impressing the market with their numbers.

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<v Speaker 2>And how do you think the investor base has come

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<v Speaker 2>out in terms of yes, please spend all costs.

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<v Speaker 4>This is a rush, this is a war.

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<v Speaker 2>Or on the other side, hold on do we need

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<v Speaker 2>this sort of level of data center investment right now?

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<v Speaker 4>Where are they falling?

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<v Speaker 2>Is to that sort of ultimate dichotomy we see faced

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<v Speaker 2>in the market.

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<v Speaker 7>Yeah, I think you know that when we did see

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<v Speaker 7>that sort of release last week from deep Seek, that

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<v Speaker 7>did just sort of raise questions of disruption and raise

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<v Speaker 7>those questions over the amount of spending which had been

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<v Speaker 7>lingering anyway. But I think at the moment so far,

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<v Speaker 7>and what we've seen from earning seasons so far, from

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<v Speaker 7>the calls that we've listened to, it does seem to

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<v Speaker 7>be that sense that AKA for now, this still seems

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<v Speaker 7>like an idea that spending in AI, investing in AI

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<v Speaker 7>is still the way to go. There's still plenty of

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<v Speaker 7>opportunity out there. I still think we're very much at

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<v Speaker 7>the cusp of understanding what this AI revolution could mean

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<v Speaker 7>for these stock So I think at the moment we're

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<v Speaker 7>just still on that side. I think what the concern

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<v Speaker 7>would be is actually, when we get a little bit

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<v Speaker 7>further down the line and we're not seeing a return

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<v Speaker 7>on those investments, that's when we're going to start potentially

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<v Speaker 7>to see this unraveling, but up to now that hasn't

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<v Speaker 7>been the case.

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<v Speaker 3>Fear Now I'm curious, but now that you mentioned kind

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<v Speaker 3>of perhaps companies getting a bit more leeway, especially as

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<v Speaker 3>you have President tramp really amping up this idea of

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<v Speaker 3>the EI race national competitiveness. How long do you think

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<v Speaker 3>investors will give companies to see whether those investments are

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<v Speaker 3>actually panning out.

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<v Speaker 7>Yeah, that's a really good question. Yeah, because I think

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<v Speaker 7>this the whole sort of what we've seen over the

0:11:40.840 --> 0:11:43.200
<v Speaker 7>last couple of weeks, the last week particular with this

0:11:43.280 --> 0:11:47.760
<v Speaker 7>deep Seek unveiling is sort of that question of innovation,

0:11:48.480 --> 0:11:51.520
<v Speaker 7>is that question of you know what's next? How far

0:11:51.600 --> 0:11:55.679
<v Speaker 7>can this go? And so you know, investors are curious,

0:11:55.800 --> 0:11:59.120
<v Speaker 7>they are optimistic, but they're not going to have an

0:11:59.120 --> 0:12:03.000
<v Speaker 7>everlasting patients. Obviously we've seen from Matter, I mean, they

0:12:03.040 --> 0:12:06.880
<v Speaker 7>were a good example to use from last week's earnings,

0:12:06.880 --> 0:12:10.680
<v Speaker 7>where we've seen sort of really encouraging outlook and numbers,

0:12:10.679 --> 0:12:14.480
<v Speaker 7>and then obviously we've seen Microsoft wasn't so well received.

0:12:14.520 --> 0:12:17.440
<v Speaker 7>So there is sort of this sense that the investors

0:12:17.440 --> 0:12:22.200
<v Speaker 7>do want to see some optimism into the future. But

0:12:22.240 --> 0:12:25.520
<v Speaker 7>I do think that as we head towards the middle

0:12:25.520 --> 0:12:27.240
<v Speaker 7>and the end of twenty twenty five, and I think

0:12:27.280 --> 0:12:28.920
<v Speaker 7>that's when we're going to really need to start to

0:12:28.960 --> 0:12:32.680
<v Speaker 7>see these numbers coming through into stronger revenue streams still

0:12:32.840 --> 0:12:33.880
<v Speaker 7>and profit margins.

0:12:35.040 --> 0:12:37.360
<v Speaker 3>The honest and kard a senior analyst of City Index

0:12:37.400 --> 0:12:38.800
<v Speaker 3>Financial Markets, thank you.

0:12:39.440 --> 0:12:39.959
<v Speaker 4>Coming up.

0:12:40.080 --> 0:12:43.240
<v Speaker 3>Shares of Spotify and Puenteer surge to new records on

0:12:43.320 --> 0:12:44.120
<v Speaker 3>strong earnings.

0:12:44.360 --> 0:12:46.760
<v Speaker 4>More on that. Next, this is Bloomberg.

0:12:56.120 --> 0:12:58.719
<v Speaker 2>Shares of Spotify jumping to a new record as the

0:12:58.800 --> 0:13:01.559
<v Speaker 2>music streaming company posted another quolta better than expect to

0:13:01.600 --> 0:13:04.160
<v Speaker 2>subswabic growth. And so first I have an annual profit

0:13:04.480 --> 0:13:07.120
<v Speaker 2>from all openubg's actually common joins us now and more

0:13:07.160 --> 0:13:09.920
<v Speaker 2>than a billion delivered in terms of euros that managed

0:13:10.040 --> 0:13:11.080
<v Speaker 2>to control called stag grow.

0:13:11.720 --> 0:13:15.400
<v Speaker 9>Yes, last year was really a story of unfortunately lots

0:13:15.440 --> 0:13:18.000
<v Speaker 9>of layoffs at Spotify. They really cut back on their

0:13:18.040 --> 0:13:20.959
<v Speaker 9>podcast spending. And then this year, so I guess actually

0:13:21.000 --> 0:13:23.040
<v Speaker 9>twenty twenty four, that was twenty twenty three, twenty twenty

0:13:23.120 --> 0:13:26.840
<v Speaker 9>four was the year of new products, really doubling down

0:13:26.920 --> 0:13:30.079
<v Speaker 9>on these video creators. They say now they're going to

0:13:30.120 --> 0:13:33.080
<v Speaker 9>be focusing more on the music business. So they've they've

0:13:33.120 --> 0:13:34.760
<v Speaker 9>definitely turned a corner.

0:13:36.040 --> 0:13:38.440
<v Speaker 4>Ashley. I'm a huge fan of audio books.

0:13:38.200 --> 0:13:40.560
<v Speaker 3>And historically this has kind of been a drag on

0:13:40.679 --> 0:13:43.440
<v Speaker 3>margins for Spotify. What did the companies say about its

0:13:43.440 --> 0:13:45.560
<v Speaker 3>growth prospects in this particular segment.

0:13:46.120 --> 0:13:50.240
<v Speaker 9>So really, podcasts were what investors were really worried about

0:13:50.240 --> 0:13:53.479
<v Speaker 9>when it came to their margins. So they introduced audiobooks

0:13:53.840 --> 0:13:58.000
<v Speaker 9>back in twenty twenty three, and so far, I mean,

0:13:58.040 --> 0:14:01.280
<v Speaker 9>the company is basically positioning it as they have this profit.

0:14:01.360 --> 0:14:03.720
<v Speaker 9>Now they had their full year of profit, they're able

0:14:03.760 --> 0:14:09.559
<v Speaker 9>to reinvest in new verticals like audiobooks, like these video creators.

0:14:09.720 --> 0:14:11.680
<v Speaker 9>They did say on their earnings call today that there's

0:14:11.720 --> 0:14:13.560
<v Speaker 9>going to be a little bit of variability when it

0:14:13.559 --> 0:14:16.000
<v Speaker 9>comes to their gross margin moving forward. But again I

0:14:16.000 --> 0:14:18.720
<v Speaker 9>think they're sort of couching it as well. We showed

0:14:18.720 --> 0:14:21.120
<v Speaker 9>you guys we could do really well. We do need

0:14:21.160 --> 0:14:24.240
<v Speaker 9>to start innovating again and really putting out new products.

0:14:25.000 --> 0:14:30.560
<v Speaker 3>Bloomberg's Ashley Carmen, thank you. Another earning story, Palenteer stock

0:14:30.640 --> 0:14:33.480
<v Speaker 3>surging to a record after it posted a full year

0:14:33.560 --> 0:14:37.040
<v Speaker 3>revenue forecast that exceeded analyst estimates, driven by a quote

0:14:37.160 --> 0:14:41.359
<v Speaker 3>untamed AI Demand CEO Alex Karp said this on yesterday's

0:14:41.360 --> 0:14:41.960
<v Speaker 3>earnings call.

0:14:43.440 --> 0:14:46.080
<v Speaker 10>We are at the way beginning of our trajectory. We

0:14:46.120 --> 0:14:49.280
<v Speaker 10>are at the way beginning of revolution, and we plan

0:14:49.480 --> 0:14:52.560
<v Speaker 10>to be a cornerstone if not the cornerstone company and

0:14:52.640 --> 0:14:56.000
<v Speaker 10>driving this revolution in the US over the next three

0:14:56.000 --> 0:14:57.160
<v Speaker 10>to five years.

0:14:58.760 --> 0:15:01.880
<v Speaker 3>For more impalentail Gil I'm managing partner at DA Davidson

0:15:01.960 --> 0:15:03.800
<v Speaker 3>joins us now. He has a neutral rating on the

0:15:03.840 --> 0:15:05.760
<v Speaker 3>stock with a price target of one hundred and five

0:15:05.800 --> 0:15:09.480
<v Speaker 3>dollars gil. Alex Karp called this a revolution. He made

0:15:09.600 --> 0:15:12.520
<v Speaker 3>clear that the company is poised to benefit as global

0:15:12.520 --> 0:15:16.640
<v Speaker 3>conflict rises, especially with China. But they also touted its

0:15:16.680 --> 0:15:19.040
<v Speaker 3>commercial business on its call and in its letter. What

0:15:19.120 --> 0:15:21.720
<v Speaker 3>do you make of that segment and are you confident

0:15:21.760 --> 0:15:22.840
<v Speaker 3>in its growth prospects?

0:15:24.320 --> 0:15:28.760
<v Speaker 11>Yeah, the commercial segment is doing phenomenally well because Palenteer

0:15:29.400 --> 0:15:32.960
<v Speaker 11>is addressing the need in the market. There's a deep

0:15:33.040 --> 0:15:37.400
<v Speaker 11>need in the market for implementing AI solutions that can

0:15:37.520 --> 0:15:42.840
<v Speaker 11>add insight and decision making support. And Palenteer has a

0:15:42.880 --> 0:15:46.600
<v Speaker 11>combination of an existing set of products that they've developed

0:15:46.600 --> 0:15:49.560
<v Speaker 11>over the years, as well as a very strong professional

0:15:49.640 --> 0:15:54.000
<v Speaker 11>services group. That can help companies implement AI solutions quickly.

0:15:54.320 --> 0:15:58.200
<v Speaker 11>They're uniquely positioned to do that, and they're really riding

0:15:58.240 --> 0:15:59.440
<v Speaker 11>the AI wave right now.

0:15:59.520 --> 0:16:02.760
<v Speaker 2>So does that vindicate a price to earnings ratio of

0:16:02.840 --> 0:16:05.800
<v Speaker 2>four a price versus future earnings that is currently training

0:16:05.800 --> 0:16:08.800
<v Speaker 2>at almost two hundred times. This is a phenomenal valuation.

0:16:10.680 --> 0:16:15.720
<v Speaker 11>Yes, it is. It's orders of magnitude higher than comparable companies.

0:16:15.760 --> 0:16:17.880
<v Speaker 11>But the reality is that right now, there is no

0:16:18.040 --> 0:16:23.400
<v Speaker 11>comparable company. Polunteer is the only company at this size

0:16:23.720 --> 0:16:26.360
<v Speaker 11>that is not only going to grow more than thirty percent,

0:16:26.560 --> 0:16:29.840
<v Speaker 11>it's doing so as it accelerates growth. I mean, the

0:16:29.880 --> 0:16:33.760
<v Speaker 11>rest of the software complex it has seen decelerating growth,

0:16:34.080 --> 0:16:37.400
<v Speaker 11>and very few companies at this size can even approach

0:16:37.440 --> 0:16:38.160
<v Speaker 11>thirty percent.

0:16:38.720 --> 0:16:40.520
<v Speaker 2>Let's just talk about that growth though, because if you

0:16:40.560 --> 0:16:43.440
<v Speaker 2>go back to twenty twenty two and we heard from

0:16:43.480 --> 0:16:46.840
<v Speaker 2>William Blair, analyst talking about this, he made a commitment

0:16:46.880 --> 0:16:49.000
<v Speaker 2>to bringing in about four and a half billion in

0:16:49.120 --> 0:16:51.800
<v Speaker 2>terms of revenue, So actually he's undershot that. Are you

0:16:51.880 --> 0:16:55.120
<v Speaker 2>worried about the undershooting of a three year target.

0:16:54.800 --> 0:17:00.200
<v Speaker 11>Here right now? Because again, on the commercial side, they

0:17:00.200 --> 0:17:03.600
<v Speaker 11>have a tremendous amount of momentum with enterprise customers that

0:17:03.680 --> 0:17:07.600
<v Speaker 11>want AI solutions quickly going to Poundteer to do that.

0:17:07.920 --> 0:17:11.240
<v Speaker 11>And then on the government side, they're having great success

0:17:11.359 --> 0:17:15.080
<v Speaker 11>with Department of Defense, which is likely to continue under

0:17:15.119 --> 0:17:19.560
<v Speaker 11>this administration given the focus on digital, given the focus

0:17:20.119 --> 0:17:24.760
<v Speaker 11>the proximity of people Impounteer to this administration. And then

0:17:24.760 --> 0:17:28.760
<v Speaker 11>they also have really big wins in the UK National

0:17:28.800 --> 0:17:31.359
<v Speaker 11>Health Services that drove a lot of the growth this

0:17:31.520 --> 0:17:35.080
<v Speaker 11>quarter as well. So they're hitting on all cylinders right now.

0:17:35.400 --> 0:17:38.200
<v Speaker 11>They have a ramp to continue to grow at these

0:17:38.320 --> 0:17:41.520
<v Speaker 11>rates even if they didn't reach some of those ambitious

0:17:41.560 --> 0:17:42.800
<v Speaker 11>goals they've set in the past.

0:17:43.880 --> 0:17:47.200
<v Speaker 3>Potentially one of those ramps could be Elon Musk's Department

0:17:47.280 --> 0:17:49.880
<v Speaker 3>of Government Efficiency, which came up on last night's call.

0:17:49.960 --> 0:17:53.040
<v Speaker 3>I'm curious if that is factoring into how you're thinking

0:17:53.040 --> 0:17:53.800
<v Speaker 3>about the stock.

0:17:55.560 --> 0:17:59.240
<v Speaker 11>It does, because the government is running a lot of

0:17:59.280 --> 0:18:03.880
<v Speaker 11>outdated software that was developed sometimes in the eighties or nineties,

0:18:04.359 --> 0:18:08.399
<v Speaker 11>with code that can only be maintained by people that

0:18:08.440 --> 0:18:11.800
<v Speaker 11>are retiring. There's a huge need to update all the

0:18:11.880 --> 0:18:16.119
<v Speaker 11>software code in the government and again especially in units

0:18:16.119 --> 0:18:18.840
<v Speaker 11>of the Department of Defense. And this is what Palndteer

0:18:18.840 --> 0:18:21.679
<v Speaker 11>has been focused on for more than twenty years. So

0:18:21.760 --> 0:18:24.040
<v Speaker 11>with a little bit more of a sense of urgency

0:18:24.080 --> 0:18:27.080
<v Speaker 11>from the government, pound Tier is very well positioned to

0:18:27.200 --> 0:18:30.639
<v Speaker 11>get a lot more of that business, again extending the

0:18:30.760 --> 0:18:35.160
<v Speaker 11>ramp in the government sector, where where previously maybe they

0:18:35.160 --> 0:18:38.520
<v Speaker 11>were still fighting for turf. Now they have a much

0:18:39.160 --> 0:18:42.600
<v Speaker 11>straight line, much more straight line towards getting that progress.

0:18:42.920 --> 0:18:46.480
<v Speaker 2>But international growth, gil that's going to be hit if

0:18:46.480 --> 0:18:50.439
<v Speaker 2>we do see geopolitical tensions and they are seeming to

0:18:50.720 --> 0:18:54.119
<v Speaker 2>lose that sort of growth trajectory in an international sales perspective.

0:18:55.240 --> 0:18:58.359
<v Speaker 11>That's right outside of the US and the UK, they're

0:18:58.359 --> 0:19:01.239
<v Speaker 11>having challenges in Europe, and part of it is the

0:19:01.280 --> 0:19:06.040
<v Speaker 11>political identity. This company is a mission driven company. They

0:19:06.400 --> 0:19:10.000
<v Speaker 11>state very clearly that they're there to defend Western civilization

0:19:10.640 --> 0:19:15.040
<v Speaker 11>and especially the United States and putting America first, which

0:19:15.040 --> 0:19:18.000
<v Speaker 11>again fits very well with this administration in the US,

0:19:18.320 --> 0:19:21.439
<v Speaker 11>but in Europe that rubs some people the wrong way.

0:19:21.760 --> 0:19:24.679
<v Speaker 11>They don't necessarily see that mission as a reason to

0:19:24.720 --> 0:19:29.480
<v Speaker 11>buy software, and that's where polunteers not doing as well. Now.

0:19:29.800 --> 0:19:33.640
<v Speaker 11>There are some political landscape shifts in Europe and we'll

0:19:33.680 --> 0:19:34.760
<v Speaker 11>see how those play out.

0:19:35.080 --> 0:19:39.640
<v Speaker 2>And getting real time messages from hedge Fund Telemetry, for example,

0:19:39.680 --> 0:19:43.560
<v Speaker 2>really questioning the market capitalization here, Gil, you talked about

0:19:43.600 --> 0:19:48.359
<v Speaker 2>why it's vindicated, it's unique offering, but just tell us

0:19:48.400 --> 0:19:50.560
<v Speaker 2>about your price point, because it's actually where the price

0:19:50.640 --> 0:19:52.679
<v Speaker 2>is currently for the stock. Would you upgrade it?

0:19:54.600 --> 0:19:58.440
<v Speaker 11>We prefer other companies that have similar growth trajectories and

0:19:58.520 --> 0:20:02.680
<v Speaker 11>similar ramps. Specifically, in this case, Snowflake and Data Dog

0:20:03.040 --> 0:20:06.800
<v Speaker 11>will also ride the AI wave in their own way,

0:20:07.119 --> 0:20:09.239
<v Speaker 11>and they're trading at a fraction of the multiple. So

0:20:09.680 --> 0:20:14.160
<v Speaker 11>if palteers trading at seventy times revenue and one hundred

0:20:14.160 --> 0:20:18.159
<v Speaker 11>and seventy times cash flow, Snowflake and Data Dog are

0:20:18.200 --> 0:20:22.760
<v Speaker 11>trading more like fifteen times revenue and fifty times cash flow,

0:20:22.960 --> 0:20:27.480
<v Speaker 11>which are much more palatable valuations, and that's why those

0:20:27.480 --> 0:20:29.159
<v Speaker 11>are our by ratings in this sector.

0:20:29.600 --> 0:20:31.600
<v Speaker 2>Iilllaria, It's great to catch up with you. Thank you,

0:20:31.640 --> 0:20:42.000
<v Speaker 2>Da Davison. It's time now for talking tech. First up

0:20:42.040 --> 0:20:45.520
<v Speaker 2>salesforce cutting jobs at its latest fiscal year gets underway,

0:20:45.520 --> 0:20:47.560
<v Speaker 2>according to a source who says in fat more than

0:20:47.560 --> 0:20:49.959
<v Speaker 2>a thousand roles will be affected. This comes even as

0:20:49.960 --> 0:20:54.040
<v Speaker 2>the company is simultaneously hiring workers to sell new AI products.

0:20:54.359 --> 0:20:57.480
<v Speaker 2>Plus Grab check out the shares jumping on the back

0:20:57.480 --> 0:20:59.320
<v Speaker 2>of the news that it is weighing a takeover of

0:20:59.400 --> 0:21:02.159
<v Speaker 2>rival Goat at evaluation more than seven billion dollars. The

0:21:02.200 --> 0:21:05.120
<v Speaker 2>firms are the two biggest white hailing providers in Southeast

0:21:05.119 --> 0:21:07.800
<v Speaker 2>Asia and have held on and off talks for years,

0:21:08.560 --> 0:21:11.840
<v Speaker 2>and shares of German Chipmaker and Finian also surging, this

0:21:11.920 --> 0:21:14.000
<v Speaker 2>time the most in nine months, after the company's forecast

0:21:14.000 --> 0:21:17.600
<v Speaker 2>revenue beat analyst expectations. A bright spot in an industry

0:21:17.600 --> 0:21:20.840
<v Speaker 2>that's been grappling with long standing slump, a situation which

0:21:20.880 --> 0:21:24.320
<v Speaker 2>would not be held though by tariffs, says the company CFO.

0:21:25.480 --> 0:21:29.639
<v Speaker 12>A major escalation of the tariffs is not included in

0:21:29.680 --> 0:21:34.919
<v Speaker 12>our guidance because we still are not giving up in

0:21:35.040 --> 0:21:38.600
<v Speaker 12>advocating for free trade. We do not see that as

0:21:38.680 --> 0:21:42.520
<v Speaker 12>positive for the industry, so an escalation of tariffs and

0:21:42.600 --> 0:21:44.920
<v Speaker 12>counter tariffs would be negative.

0:21:52.840 --> 0:21:55.280
<v Speaker 2>Welcome back to Bloomberg Technology. I'm Caroline Hyde in New

0:21:55.320 --> 0:21:56.280
<v Speaker 2>York and.

0:21:56.240 --> 0:21:57.960
<v Speaker 3>I'm Jackie Devalas in San Francisco.

0:21:58.119 --> 0:22:00.840
<v Speaker 2>Quick check on these markets, Jackie, because for making up

0:22:00.840 --> 0:22:02.680
<v Speaker 2>for yesterday's sell off, we're up more than one point

0:22:02.720 --> 0:22:05.600
<v Speaker 2>three percent on the NASDAK Big points contribution coming from

0:22:05.640 --> 0:22:07.760
<v Speaker 2>the likes of Nvidia, from Alphabet that has numbers after

0:22:07.800 --> 0:22:10.879
<v Speaker 2>the bell, but also from Pallenteer that had its numbers

0:22:10.880 --> 0:22:11.760
<v Speaker 2>off the bell yesterday.

0:22:11.960 --> 0:22:14.080
<v Speaker 4>Boy, we are riding high. We are new record high.

0:22:14.119 --> 0:22:16.840
<v Speaker 2>Let's moving on to Palenteer that currently jumps twenty six percent.

0:22:17.119 --> 0:22:20.240
<v Speaker 2>The valuation is absolutely extraordinarily on this software stop as

0:22:20.240 --> 0:22:24.800
<v Speaker 2>we're hearing from key Da Davison analysts saying, look, look, ultimately,

0:22:24.800 --> 0:22:27.360
<v Speaker 2>this is a unique story in software, and they continue

0:22:27.359 --> 0:22:29.920
<v Speaker 2>to outperform. We've got government contracts, we've got commercial contracts.

0:22:29.920 --> 0:22:32.800
<v Speaker 2>It's all about the US in this age of geopolitical risk.

0:22:32.880 --> 0:22:34.640
<v Speaker 2>But Jackie, we're looking at plenty more.

0:22:36.800 --> 0:22:41.240
<v Speaker 3>Elon Musk's government takeover has been swift and chaotic. Bloomberg's

0:22:41.280 --> 0:22:43.439
<v Speaker 3>Kirt Wagner rates in today's Tech news letter that just

0:22:43.480 --> 0:22:45.840
<v Speaker 3>in two short weeks, Musk has become a bit of

0:22:45.880 --> 0:22:47.760
<v Speaker 3>a human wrecking ball in Washington.

0:22:48.040 --> 0:22:51.080
<v Speaker 4>He joins us now for more, Kurt, you rate that

0:22:51.720 --> 0:22:55.200
<v Speaker 4>this isn't a movie that we haven't seen before. Could

0:22:55.240 --> 0:22:55.760
<v Speaker 4>you walk us through?

0:22:55.760 --> 0:22:58.399
<v Speaker 3>Perhaps the difference is between how Elon Musk is running

0:22:58.600 --> 0:23:01.840
<v Speaker 3>Doze right now versus his previous takeover of Twitter.

0:23:03.000 --> 0:23:05.280
<v Speaker 13>Yeah, Well, the number of similarities is going to be

0:23:05.359 --> 0:23:07.520
<v Speaker 13>a lot longer, I think than the number of differences.

0:23:07.520 --> 0:23:10.200
<v Speaker 13>I think anybody familiar with that Twitter takeover is seeing

0:23:10.240 --> 0:23:13.320
<v Speaker 13>a very familiar playbook play out right here. Right, it's

0:23:14.119 --> 0:23:17.680
<v Speaker 13>you know, showing up cutting off access for people offering

0:23:17.720 --> 0:23:21.119
<v Speaker 13>buyouts with literally the same language in the email that

0:23:21.160 --> 0:23:24.440
<v Speaker 13>he's given people kind of bullying his way into these systems, right,

0:23:24.480 --> 0:23:27.080
<v Speaker 13>and anybody who tries to get in his way is

0:23:27.119 --> 0:23:28.560
<v Speaker 13>you know, suddenly showing up on leave.

0:23:28.640 --> 0:23:30.600
<v Speaker 8>And in Twitter's case, it was it was being fired.

0:23:30.640 --> 0:23:33.480
<v Speaker 13>And so I think the biggest difference here, and what

0:23:33.520 --> 0:23:35.560
<v Speaker 13>I wanted to really hammer home in the in this

0:23:35.600 --> 0:23:39.119
<v Speaker 13>morning's Tech newsletter, is that, you know, with Twitter, he

0:23:39.200 --> 0:23:41.600
<v Speaker 13>was doing this with a privately held company that he

0:23:42.040 --> 0:23:43.520
<v Speaker 13>bought with private money.

0:23:43.600 --> 0:23:45.120
<v Speaker 8>Right, this is the US government.

0:23:45.200 --> 0:23:48.240
<v Speaker 13>This is the ramifications of what he's doing to cut

0:23:48.280 --> 0:23:50.480
<v Speaker 13>the government is going to affect all of us as

0:23:50.480 --> 0:23:51.359
<v Speaker 13>citizens here.

0:23:51.760 --> 0:23:54.000
<v Speaker 8>And it doesn't necessarily strike me.

0:23:54.000 --> 0:23:56.600
<v Speaker 13>As well that the the tactics are the same.

0:23:56.920 --> 0:24:00.200
<v Speaker 8>The you know, stakes are much higher here, I think.

0:24:00.480 --> 0:24:02.560
<v Speaker 4>They are, but some people like it.

0:24:02.800 --> 0:24:06.240
<v Speaker 2>Kurt look Palenteer, the CTO, was on the call saying

0:24:06.280 --> 0:24:08.960
<v Speaker 2>that Palenti's real competition is a lack of accountability, and

0:24:09.000 --> 0:24:11.120
<v Speaker 2>in fact, they think Dog is going to bring meritocracy,

0:24:11.160 --> 0:24:14.400
<v Speaker 2>It's going to bring transparency to government. So even though

0:24:14.440 --> 0:24:16.840
<v Speaker 2>it is this sort of wrecking ball, could it have

0:24:17.320 --> 0:24:19.000
<v Speaker 2>positive impacts for companies here?

0:24:19.920 --> 0:24:20.120
<v Speaker 8>Yeah?

0:24:20.160 --> 0:24:22.480
<v Speaker 13>So, I think in much the same way you know

0:24:22.600 --> 0:24:25.399
<v Speaker 13>he succeeded in cutting costs at Twitter, I have no

0:24:25.480 --> 0:24:27.639
<v Speaker 13>doubt that he will cut costs at the US government

0:24:27.680 --> 0:24:30.560
<v Speaker 13>and find things that quite frankly, all of us would

0:24:30.560 --> 0:24:33.080
<v Speaker 13>be scratching our head saying, wait, we were paying for

0:24:33.160 --> 0:24:35.320
<v Speaker 13>what we were spending X number of millions on?

0:24:35.400 --> 0:24:35.440
<v Speaker 5>What?

0:24:35.640 --> 0:24:35.800
<v Speaker 4>Right?

0:24:35.960 --> 0:24:37.919
<v Speaker 13>I have no doubt that those things exist and that

0:24:37.960 --> 0:24:41.480
<v Speaker 13>they will hopefully be uncovered. But I also think that

0:24:41.600 --> 0:24:44.119
<v Speaker 13>there are probably a lot more thoughtful ways to go

0:24:44.160 --> 0:24:46.320
<v Speaker 13>about doing this. I think the thing we know from Elon,

0:24:47.200 --> 0:24:49.239
<v Speaker 13>over covering him for years and watching him with all

0:24:49.280 --> 0:24:51.920
<v Speaker 13>his companies as he tends to you know, not worry

0:24:51.960 --> 0:24:54.679
<v Speaker 13>about the collateral damage, right, he just simply says, the

0:24:54.720 --> 0:24:56.600
<v Speaker 13>goal is to cut costs, we will do whatever it

0:24:56.640 --> 0:24:58.639
<v Speaker 13>takes to get there, and you know everything else that

0:24:58.680 --> 0:25:01.720
<v Speaker 13>happens as a side effect, well, those side effects, I

0:25:01.720 --> 0:25:04.199
<v Speaker 13>think at a at a national scale could just be

0:25:04.280 --> 0:25:07.560
<v Speaker 13>really significant, and so for me, I would prefer to

0:25:07.600 --> 0:25:10.320
<v Speaker 13>see someone who's you know, maybe moving a little slower,

0:25:11.640 --> 0:25:13.160
<v Speaker 13>you know, to try and make sure that we don't

0:25:13.160 --> 0:25:15.399
<v Speaker 13>have any of these downstream effects that we've seen at

0:25:15.400 --> 0:25:17.119
<v Speaker 13>some of his companies when he moves this quickly.

0:25:17.680 --> 0:25:21.000
<v Speaker 2>Cole Wagner, thanks so much, and do check out, of course,

0:25:21.040 --> 0:25:24.280
<v Speaker 2>the Tech in Depth newsletter from Bloomberg's journalists around the world.

0:25:24.400 --> 0:25:27.679
<v Speaker 2>You can subscribe on bloombg dot com slash newsletters. But

0:25:27.760 --> 0:25:29.560
<v Speaker 2>let's keep this conversation going when it comes to do

0:25:29.920 --> 0:25:32.280
<v Speaker 2>Jennifer Perlker's with our senior fellow at the Nishkin and

0:25:32.480 --> 0:25:36.399
<v Speaker 2>Center and former President Mark Balmer's deputy chief technology officer.

0:25:36.800 --> 0:25:39.840
<v Speaker 2>And interestingly, you just recently co authored a report providing

0:25:39.960 --> 0:25:44.800
<v Speaker 2>perhaps a roadmap for improving government performance structural cultural challenges.

0:25:45.280 --> 0:25:47.639
<v Speaker 2>But do in any way see the positives of this

0:25:47.720 --> 0:25:48.840
<v Speaker 2>doze drive, Jennifer.

0:25:50.440 --> 0:25:52.399
<v Speaker 8>I think I hoped to see positives.

0:25:52.600 --> 0:25:56.159
<v Speaker 14>I've been a big advocate for real significant renovation of

0:25:56.240 --> 0:25:59.440
<v Speaker 14>government for a long time, and as Kurt said, I've

0:25:59.440 --> 0:26:02.439
<v Speaker 14>been hoping that would move faster. I think unfortunately what

0:26:02.480 --> 0:26:06.119
<v Speaker 14>we're seeing is moving far too fast. And not with

0:26:06.200 --> 0:26:09.360
<v Speaker 14>the right intent. So if you want to renovate government,

0:26:09.400 --> 0:26:11.560
<v Speaker 14>that's sort of like pulling it back down to the studs.

0:26:11.720 --> 0:26:13.880
<v Speaker 14>What we're seeing now is really pulling up the core

0:26:13.960 --> 0:26:18.360
<v Speaker 14>foundations of our government, the principles on which it was established,

0:26:18.600 --> 0:26:22.199
<v Speaker 14>and that is not going to increase state capacity.

0:26:21.680 --> 0:26:23.440
<v Speaker 8>Which is what our report is about.

0:26:23.560 --> 0:26:25.800
<v Speaker 14>State capacity is just the ability of government to achieve

0:26:25.840 --> 0:26:29.679
<v Speaker 14>its policy goals. We have incredibly important challenges that we

0:26:29.720 --> 0:26:32.320
<v Speaker 14>need to face as a government. We need a stronger state,

0:26:32.440 --> 0:26:33.560
<v Speaker 14>not a destroyed state.

0:26:35.320 --> 0:26:38.400
<v Speaker 3>Jennifer, you've talked about how government and perhaps some political

0:26:38.400 --> 0:26:41.639
<v Speaker 3>parties more than others, have focused too much on process,

0:26:42.240 --> 0:26:46.120
<v Speaker 3>not outcomes. How in a perfect world could you see

0:26:46.200 --> 0:26:50.760
<v Speaker 3>perhaps those playing a role in advancing technology really helping

0:26:50.800 --> 0:26:52.040
<v Speaker 3>government perform better.

0:26:53.440 --> 0:26:56.960
<v Speaker 14>We certainly do need more focus on outcomes over process.

0:26:58.560 --> 0:27:00.080
<v Speaker 8>We don't need no process.

0:27:00.119 --> 0:27:04.200
<v Speaker 14>And what's happening right now is not just looking deeply

0:27:04.280 --> 0:27:08.280
<v Speaker 14>at what processes could be simplified, but actually not respecting

0:27:08.359 --> 0:27:11.160
<v Speaker 14>the law. And what I had hoped Doge would do

0:27:11.280 --> 0:27:13.679
<v Speaker 14>is go in and say, Okay, these things can be

0:27:13.760 --> 0:27:15.520
<v Speaker 14>cleaned up. Oh and by the way, some of these

0:27:15.600 --> 0:27:17.639
<v Speaker 14>laws are holding us back. Let's go to Congress and

0:27:17.680 --> 0:27:20.399
<v Speaker 14>have them fixed so that we can operate in a

0:27:20.440 --> 0:27:25.280
<v Speaker 14>more streamlined and outcomes oriented way. Instead, they're just sort

0:27:25.280 --> 0:27:28.000
<v Speaker 14>of rolling roughshot over the law, which is again through

0:27:28.040 --> 0:27:30.359
<v Speaker 14>the principle of our government, and very dangerous.

0:27:31.359 --> 0:27:33.879
<v Speaker 3>I mean, if you were to give lawmakers perhaps some

0:27:33.960 --> 0:27:36.960
<v Speaker 3>advice on how to clean some of this up, how

0:27:37.000 --> 0:27:39.800
<v Speaker 3>to regain some of the trusting credibility that perhaps DOGE

0:27:39.800 --> 0:27:41.520
<v Speaker 3>can bring, what advice would you bring them?

0:27:42.520 --> 0:27:44.960
<v Speaker 14>Well, we have four major pillars that we think need

0:27:45.000 --> 0:27:47.240
<v Speaker 14>to happen, and they should have been regardless of DOGE.

0:27:47.280 --> 0:27:50.280
<v Speaker 14>I think we're in a very chaotic moment, but there

0:27:50.320 --> 0:27:52.440
<v Speaker 14>will be moments when we can look back at this agenda.

0:27:52.760 --> 0:27:55.120
<v Speaker 14>We essentially say four things. If you want a government

0:27:55.160 --> 0:27:56.960
<v Speaker 14>that can do what it says it's going to do,

0:27:57.280 --> 0:27:59.000
<v Speaker 14>you need to be able to hire the right people

0:27:59.040 --> 0:28:01.480
<v Speaker 14>and fire the wrong one. You need to reduce the

0:28:01.520 --> 0:28:05.119
<v Speaker 14>procedural bloat. You need to invest in digital and data

0:28:05.160 --> 0:28:08.320
<v Speaker 14>infrastructure in smart ways, not just cutting people off but

0:28:08.359 --> 0:28:12.119
<v Speaker 14>actually building what does work. And lastly, we need to

0:28:12.200 --> 0:28:16.119
<v Speaker 14>close the loop, the feedback loop between policymakers and the

0:28:16.160 --> 0:28:20.440
<v Speaker 14>outcomes that actually come from our laws and policies. Right now,

0:28:20.440 --> 0:28:22.399
<v Speaker 14>we're just sort of putting things out there and hoping

0:28:22.440 --> 0:28:24.879
<v Speaker 14>that we get what we want without doing what the

0:28:24.880 --> 0:28:27.560
<v Speaker 14>private sector does, which is really say, is this working

0:28:27.680 --> 0:28:30.560
<v Speaker 14>as we're going? Can we check in? Can lawmakers and

0:28:30.600 --> 0:28:33.840
<v Speaker 14>others sort of work with the executive branch in new

0:28:33.880 --> 0:28:37.080
<v Speaker 14>ways to say, let's tweak this as it goes along

0:28:37.119 --> 0:28:38.880
<v Speaker 14>so that we get the outcomes that are laws and

0:28:38.920 --> 0:28:41.640
<v Speaker 14>policies intend. I still think all of these things can

0:28:41.720 --> 0:28:43.520
<v Speaker 14>be done, but it's very hard to do it in

0:28:43.560 --> 0:28:48.040
<v Speaker 14>the current environment chaos and fear.

0:28:48.600 --> 0:28:51.800
<v Speaker 2>Chaos fere but also speed, and that's all from what

0:28:52.360 --> 0:28:54.479
<v Speaker 2>the private sector brings. And as you say, a lot

0:28:54.560 --> 0:28:58.600
<v Speaker 2>of your offerings and prioritization here feel like very private

0:28:58.600 --> 0:29:03.840
<v Speaker 2>sector orientation of of prioritizing talent, of streamlining processes. Realistically,

0:29:04.120 --> 0:29:06.800
<v Speaker 2>if they didn't, as you quote Ron Roshod, if they

0:29:06.840 --> 0:29:07.520
<v Speaker 2>went along with.

0:29:07.520 --> 0:29:09.600
<v Speaker 4>Congress, how much longer would that take.

0:29:09.680 --> 0:29:14.680
<v Speaker 2>Are the incentives of politicians aligned with ultimately remaking with efficiency?

0:29:15.760 --> 0:29:18.320
<v Speaker 14>I think the incentives of politicians come from the people,

0:29:18.400 --> 0:29:20.880
<v Speaker 14>and that the people need to ask their politicians to

0:29:20.920 --> 0:29:23.840
<v Speaker 14>be more focused on the how of government and not

0:29:23.960 --> 0:29:27.040
<v Speaker 14>just the what whatever you want government to do, it

0:29:27.080 --> 0:29:29.040
<v Speaker 14>has to actually be able to do it. And I

0:29:29.040 --> 0:29:31.560
<v Speaker 14>think if the people say, look, this matters how we

0:29:31.600 --> 0:29:35.040
<v Speaker 14>are structured to achieve our policy goals, they will ultimately

0:29:35.200 --> 0:29:38.920
<v Speaker 14>be responsive to that. Right now, again, it's very hard

0:29:39.000 --> 0:29:41.920
<v Speaker 14>because there's so much chaos going on, but I do

0:29:41.960 --> 0:29:45.640
<v Speaker 14>think we'll get to a place where that conversation can happen. Yes,

0:29:45.680 --> 0:29:48.160
<v Speaker 14>it would be a little bit slower, and yes I

0:29:48.200 --> 0:29:51.360
<v Speaker 14>have called for things to move faster, but the core

0:29:51.440 --> 0:29:55.200
<v Speaker 14>foundations of our government are good and we should be

0:29:55.280 --> 0:29:56.880
<v Speaker 14>protecting them right now as well.

0:29:57.600 --> 0:30:00.240
<v Speaker 4>Is Elon is cool.

0:30:00.280 --> 0:30:05.640
<v Speaker 2>Department of Government efficiency the right albitter of this if

0:30:05.680 --> 0:30:08.840
<v Speaker 2>they do it in the right way.

0:30:10.480 --> 0:30:13.600
<v Speaker 14>Elon, I think, has shown that he's not going to

0:30:13.640 --> 0:30:15.480
<v Speaker 14>do it in a way that's consistent with the core

0:30:15.520 --> 0:30:18.840
<v Speaker 14>values of our government. Unfortunately, we still need it done,

0:30:18.920 --> 0:30:21.400
<v Speaker 14>but we need it done probably first at the state

0:30:21.440 --> 0:30:23.200
<v Speaker 14>and local level, so that we can show how to

0:30:23.240 --> 0:30:25.000
<v Speaker 14>do it right and then bring it back to the

0:30:25.000 --> 0:30:27.880
<v Speaker 14>federal government and do it the way that it needs

0:30:27.880 --> 0:30:29.240
<v Speaker 14>to be done for the American people.

0:30:31.520 --> 0:30:33.920
<v Speaker 3>Jennifer polkas senior Fellow at the Nis Canon Center.

0:30:33.960 --> 0:30:35.200
<v Speaker 4>We thank you now.

0:30:35.200 --> 0:30:38.360
<v Speaker 3>Coming up, Edith Young from Race Capital joins us next

0:30:38.440 --> 0:30:41.160
<v Speaker 3>on the state of crypto under the Trump administration.

0:30:41.640 --> 0:30:54.040
<v Speaker 4>This is Bloomberg. Senator Bill.

0:30:54.600 --> 0:30:57.480
<v Speaker 3>Senator Bill Haggerty will introduce legislation today to create a

0:30:57.520 --> 0:30:59.880
<v Speaker 3>framework for stable coins. This is the latest push of

0:30:59.880 --> 0:31:03.760
<v Speaker 3>my Republicans to create a crypto friendly guideline for the industry.

0:31:03.800 --> 0:31:06.680
<v Speaker 3>That's a priority for President Trump. Let's bring in Edith

0:31:06.720 --> 0:31:09.840
<v Speaker 3>Young for today's VC Spotlight, General partner at Race Capital

0:31:10.080 --> 0:31:12.840
<v Speaker 3>in early stage Silicon Valley VC fund investing in all

0:31:12.880 --> 0:31:16.440
<v Speaker 3>things infrastructure. Edith, why don't you walk us through what

0:31:16.560 --> 0:31:19.640
<v Speaker 3>this new administration means for the crypto landscape and how

0:31:19.800 --> 0:31:22.400
<v Speaker 3>you're thinking about potential opportunities going forward.

0:31:23.240 --> 0:31:23.440
<v Speaker 4>Yeah.

0:31:23.480 --> 0:31:26.480
<v Speaker 15>So, one of my predictions for twenty twenty five is

0:31:26.520 --> 0:31:29.720
<v Speaker 15>for President Trump to create the Bitcoin Reserve.

0:31:30.480 --> 0:31:32.320
<v Speaker 4>And this is only his third.

0:31:32.080 --> 0:31:34.160
<v Speaker 15>Week in office, and I don't have all the tea

0:31:34.240 --> 0:31:38.160
<v Speaker 15>leaves yet, but I just spent some time digging into

0:31:38.480 --> 0:31:44.240
<v Speaker 15>how the US government holds our other reserved assept today.

0:31:45.000 --> 0:31:49.720
<v Speaker 15>Let's take Goal as an example, is actually managed by

0:31:49.880 --> 0:31:55.000
<v Speaker 15>the Treasure Department, and US actually hold over eighty eighty

0:31:55.080 --> 0:31:59.280
<v Speaker 15>one hundred tons of Goal reserve today and is managed

0:31:59.320 --> 0:32:00.520
<v Speaker 15>by the Treasury Department.

0:32:00.920 --> 0:32:02.600
<v Speaker 4>And what's really interesting is that.

0:32:02.600 --> 0:32:08.480
<v Speaker 15>Particular is being oversight by the Inspector General of Treasure Department,

0:32:08.720 --> 0:32:10.800
<v Speaker 15>and this role is currently vacant.

0:32:11.480 --> 0:32:13.080
<v Speaker 4>No one is in this world today.

0:32:13.600 --> 0:32:16.520
<v Speaker 15>And what's also really interesting is that that role is

0:32:16.600 --> 0:32:21.280
<v Speaker 15>supposed to the custody security audit and set all the

0:32:21.440 --> 0:32:26.440
<v Speaker 15>policy around goal. So for us, as you us to

0:32:26.560 --> 0:32:28.080
<v Speaker 15>think about should we have.

0:32:28.040 --> 0:32:29.040
<v Speaker 4>A bitcoin reserve?

0:32:29.680 --> 0:32:32.280
<v Speaker 15>The key thing I think for the administration and of

0:32:32.320 --> 0:32:36.160
<v Speaker 15>course the exacts are cryptosard to think about is why

0:32:36.160 --> 0:32:39.360
<v Speaker 15>do we want a reserve? And historically it's really for

0:32:39.840 --> 0:32:44.200
<v Speaker 15>to hetch against the inflation at the same time, and

0:32:44.320 --> 0:32:48.040
<v Speaker 15>of course we already US already have over two hundred

0:32:48.160 --> 0:32:52.320
<v Speaker 15>thousand of bitcoin in custody today. But the key thing

0:32:52.360 --> 0:32:55.680
<v Speaker 15>is really is the government do need to diversify but

0:32:55.760 --> 0:32:58.880
<v Speaker 15>bitcoin is fluctually quite a bit. Is this something that

0:32:58.920 --> 0:33:01.680
<v Speaker 15>we really want to do? Ns this afternoon we'll find

0:33:01.680 --> 0:33:02.080
<v Speaker 15>out more.

0:33:02.880 --> 0:33:05.560
<v Speaker 2>You, of course a well known for your backing of Solana,

0:33:05.720 --> 0:33:08.280
<v Speaker 2>and so perhaps I dare say slight talking of books,

0:33:08.320 --> 0:33:11.320
<v Speaker 2>to say there should be digital asset reserve rather than

0:33:11.360 --> 0:33:14.440
<v Speaker 2>perhaps just a bitcoin reserve, plain and simple. But I'm

0:33:14.480 --> 0:33:17.520
<v Speaker 2>interested as to what the stable coin adoption or indeed

0:33:17.680 --> 0:33:22.200
<v Speaker 2>clarity can bring to actual US using crypto more easily

0:33:22.360 --> 0:33:25.440
<v Speaker 2>with real tangible benefits that isn't just about asset purchases.

0:33:26.360 --> 0:33:26.560
<v Speaker 4>Yeah.

0:33:26.600 --> 0:33:31.800
<v Speaker 15>Absolutely, I'm actually very bullish on stable coin in general.

0:33:32.160 --> 0:33:36.080
<v Speaker 15>I think in twenty twenty four over two hundred billion

0:33:36.240 --> 0:33:39.880
<v Speaker 15>of stable market cap, which is over fifty percent increas

0:33:39.920 --> 0:33:43.560
<v Speaker 15>year over year. And particularly what I'm really interested in

0:33:43.800 --> 0:33:48.320
<v Speaker 15>is the whole concept of open PAYFI infrastructure, and I

0:33:48.360 --> 0:33:51.800
<v Speaker 15>think is really really aligned with President Trump the administration

0:33:52.360 --> 0:33:55.840
<v Speaker 15>with the executive Order, which is all about strengthening American

0:33:55.920 --> 0:33:59.720
<v Speaker 15>leadership in digital finance. So think about it. The more

0:33:59.760 --> 0:34:03.640
<v Speaker 15>the US dominated a stable coin being adopted means we

0:34:03.680 --> 0:34:06.840
<v Speaker 15>need to kind of think about really is the traditional

0:34:06.880 --> 0:34:13.319
<v Speaker 15>PAYFI means credit card remittances across border payment and all

0:34:13.440 --> 0:34:18.680
<v Speaker 15>these old infrastructure is slow, is expensive, and Visa was

0:34:18.800 --> 0:34:22.680
<v Speaker 15>actually dablished in nineteen fifty fifty.

0:34:22.400 --> 0:34:25.400
<v Speaker 4>Eight, sixty six years ago. It's a long time and

0:34:25.440 --> 0:34:26.520
<v Speaker 4>these rail is very old.

0:34:26.920 --> 0:34:30.759
<v Speaker 15>So having like stable coin, particularly US dominated, I think

0:34:30.760 --> 0:34:33.640
<v Speaker 15>it will drive more use case for US dollar and

0:34:33.680 --> 0:34:36.719
<v Speaker 15>it will really really align with and think through the

0:34:36.760 --> 0:34:41.359
<v Speaker 15>whole infrastructure is only not only about transaction layer, which

0:34:41.360 --> 0:34:44.520
<v Speaker 15>is Solana, the finance layer, which is humor, finance, and

0:34:44.600 --> 0:34:48.360
<v Speaker 15>more so it's also compliance KYC security. So there are

0:34:48.360 --> 0:34:52.359
<v Speaker 15>a lot of opportunities for venture to invest and pay

0:34:52.400 --> 0:34:53.000
<v Speaker 15>attention to.

0:34:53.120 --> 0:34:56.399
<v Speaker 3>You mentioned President Trump's executive order. His rhetoric has also

0:34:56.400 --> 0:34:57.800
<v Speaker 3>brought some volatility to the sector.

0:34:57.840 --> 0:34:58.520
<v Speaker 4>I mean, just this.

0:34:58.440 --> 0:35:01.480
<v Speaker 3>Weekend we saw a huge liquidation this risk off trade

0:35:01.520 --> 0:35:02.040
<v Speaker 3>in crypto.

0:35:02.320 --> 0:35:03.640
<v Speaker 4>Curious if you find.

0:35:03.520 --> 0:35:06.920
<v Speaker 3>That US dependency on how the headlines here at home

0:35:07.239 --> 0:35:10.239
<v Speaker 3>are really driving those movements. Is crypto a little too

0:35:10.360 --> 0:35:11.720
<v Speaker 3>s US dependent at the moment.

0:35:12.760 --> 0:35:15.719
<v Speaker 15>Well, I think crypto in some set is the other

0:35:15.760 --> 0:35:21.719
<v Speaker 15>way around. The United States need crypto innovation. Before President Trump,

0:35:21.800 --> 0:35:27.560
<v Speaker 15>the Biden administration really have been using lawsuits to manage

0:35:27.560 --> 0:35:30.000
<v Speaker 15>the whole policy. This is really not the way to go.

0:35:30.480 --> 0:35:34.719
<v Speaker 15>I think the Trump presidencies, in particular with the new cryptosar,

0:35:35.360 --> 0:35:38.319
<v Speaker 15>really set the stage just now. The America wants to

0:35:38.920 --> 0:35:42.399
<v Speaker 15>be the leaders the forefront of this, and I think

0:35:42.400 --> 0:35:47.000
<v Speaker 15>in general is set a really positive tone. Although everything's

0:35:47.040 --> 0:35:50.000
<v Speaker 15>been again, as I said mentioned earlier, it's only been

0:35:50.120 --> 0:35:53.080
<v Speaker 15>third week, and I really don't know what's going to happen,

0:35:53.280 --> 0:35:56.440
<v Speaker 15>but I think the whole world is watching and really

0:35:56.480 --> 0:36:00.640
<v Speaker 15>looking out for the US leadership. In crypto, stable coin

0:36:00.719 --> 0:36:01.680
<v Speaker 15>and bitcoin.

0:36:01.680 --> 0:36:04.800
<v Speaker 2>Should have it involved a meme coin from the president,

0:36:04.920 --> 0:36:08.040
<v Speaker 2>and indeed the first lady.

0:36:08.440 --> 0:36:10.839
<v Speaker 15>I think you know, President Trump is have a lot

0:36:10.920 --> 0:36:14.279
<v Speaker 15>of fun with the Trump and the Millennium Mean coin

0:36:14.800 --> 0:36:19.040
<v Speaker 15>before his inaugurations. And I watched many many of the

0:36:19.120 --> 0:36:23.080
<v Speaker 15>crypto exchange leadership, including Brian's Armstrong, and what they say

0:36:23.120 --> 0:36:25.919
<v Speaker 15>about the meme coin, and all of them basically say

0:36:26.000 --> 0:36:28.160
<v Speaker 15>a lot of things that happened early in their Internet

0:36:28.280 --> 0:36:32.160
<v Speaker 15>all looked like fund and don't really know what it is.

0:36:32.280 --> 0:36:34.800
<v Speaker 15>And I think the key thing for as an investor,

0:36:35.239 --> 0:36:38.239
<v Speaker 15>particularly as a consumer investor, for to pay attention to

0:36:39.320 --> 0:36:42.720
<v Speaker 15>it's really about we need to be careful about speculations.

0:36:42.760 --> 0:36:47.520
<v Speaker 15>The key thing is really about protecting the normal retail investor.

0:36:48.080 --> 0:36:51.640
<v Speaker 15>So it's really the key thing is the power for

0:36:51.800 --> 0:36:56.560
<v Speaker 15>all the different exchanges to determine which token should be

0:36:56.680 --> 0:37:00.840
<v Speaker 15>listed to make sure that the US consumer re'll investor

0:37:00.960 --> 0:37:02.200
<v Speaker 15>is being protected in.

0:37:02.239 --> 0:37:05.400
<v Speaker 4>If you from Race Capital, thanks for joining us today.

0:37:06.160 --> 0:37:08.080
<v Speaker 4>Let's flip gears into another story.

0:37:08.280 --> 0:37:10.799
<v Speaker 2>We're watching Elon Musk stepping up his efforts to block

0:37:10.880 --> 0:37:14.040
<v Speaker 2>open ai from restructuring as a for profit company, claiming

0:37:14.040 --> 0:37:16.920
<v Speaker 2>it would abandon its public spirited mission. Now, Musk's lawyers

0:37:16.920 --> 0:37:19.520
<v Speaker 2>are expected to urge a federal judge to halt open

0:37:19.520 --> 0:37:22.200
<v Speaker 2>AI's conversion plans and a court hearing today.

0:37:22.560 --> 0:37:23.120
<v Speaker 4>All of this is.

0:37:23.120 --> 0:37:26.160
<v Speaker 2>As open a CEOs. Moutman is currently doing another world

0:37:26.160 --> 0:37:29.239
<v Speaker 2>tour with the Global Ai race heating up. Let's get

0:37:29.239 --> 0:37:32.080
<v Speaker 2>to that tour with Rachel Metz and he's been in Japan,

0:37:32.239 --> 0:37:34.640
<v Speaker 2>South Korea. Ultimately, what are we hearing in terms of

0:37:34.680 --> 0:37:37.320
<v Speaker 2>real innovation and partnership that open ai is bringing.

0:37:38.480 --> 0:37:41.480
<v Speaker 16>Yeah, so this is Sam Martman's second world tour over

0:37:41.480 --> 0:37:44.080
<v Speaker 16>the last couple of years. This one he is certainly

0:37:44.200 --> 0:37:47.239
<v Speaker 16>more well known his technology and his company is more established,

0:37:47.680 --> 0:37:50.760
<v Speaker 16>and he is making stopped in a bunch of different countries,

0:37:50.800 --> 0:37:54.480
<v Speaker 16>including South Korea where he had a deal with a

0:37:54.560 --> 0:37:58.759
<v Speaker 16>really large company focused on social media there. And he's

0:37:58.880 --> 0:38:02.000
<v Speaker 16>been meeting with soft Bank in Japan, and there's a

0:38:02.040 --> 0:38:05.000
<v Speaker 16>bunch of other staff stops as well, some are focused

0:38:05.040 --> 0:38:10.640
<v Speaker 16>on meeting with people developers. Also that there's a university

0:38:10.680 --> 0:38:12.560
<v Speaker 16>in Germany that he's going to hit up. So he's

0:38:12.560 --> 0:38:15.080
<v Speaker 16>got like a lot of different kinds of people to

0:38:15.120 --> 0:38:17.040
<v Speaker 16>meet with that are all connected to the company. Or

0:38:17.040 --> 0:38:19.520
<v Speaker 16>that he would like to be connected to the company.

0:38:19.960 --> 0:38:23.640
<v Speaker 3>We Rachel, I'm curious what risks this world tour brings up,

0:38:23.680 --> 0:38:27.480
<v Speaker 3>because obviously the Deep Seek developments of last week really

0:38:27.719 --> 0:38:31.400
<v Speaker 3>amplified this talk about an AI race. Than today we

0:38:31.440 --> 0:38:34.520
<v Speaker 3>see some retaliation from China on alphabet in.

0:38:34.480 --> 0:38:35.800
<v Speaker 4>Response to Trump's tariff.

0:38:35.880 --> 0:38:38.520
<v Speaker 3>So your scene tech companies really get caught in the middle.

0:38:38.920 --> 0:38:42.160
<v Speaker 3>Is by doing this is Sam Altman kind of putting

0:38:42.400 --> 0:38:44.240
<v Speaker 3>himself out there just a little too much.

0:38:45.320 --> 0:38:49.759
<v Speaker 16>That's a really good question. There's a lot of diplomacy

0:38:50.120 --> 0:38:53.120
<v Speaker 16>that needs to come along at this point with heading

0:38:53.239 --> 0:38:58.120
<v Speaker 16>a really powerful AI company, right like, this technology has

0:38:58.160 --> 0:39:00.319
<v Speaker 16>really taken the world by storm over the last couple

0:39:00.280 --> 0:39:03.120
<v Speaker 16>of years, So there's a lot of talking that has

0:39:03.160 --> 0:39:05.080
<v Speaker 16>to happen, meetings that have to happen. You have to

0:39:05.120 --> 0:39:07.560
<v Speaker 16>get a lot of stakeholders invested in what you're doing,

0:39:07.760 --> 0:39:11.640
<v Speaker 16>either literally invested or figuratively at least, you know, interested

0:39:11.719 --> 0:39:14.600
<v Speaker 16>in using the product and buying in So, I mean

0:39:14.640 --> 0:39:20.560
<v Speaker 16>it seems like a reasonably shrewd strategy to meet with

0:39:20.600 --> 0:39:22.759
<v Speaker 16>the people that you need to sort of get at

0:39:22.840 --> 0:39:27.120
<v Speaker 16>least familiarize them with your face and your company, as

0:39:27.360 --> 0:39:30.479
<v Speaker 16>especially as something like deep seek is happening where people

0:39:30.560 --> 0:39:32.239
<v Speaker 16>are saying, wait a minute, do we really need to

0:39:32.280 --> 0:39:36.279
<v Speaker 16>spend this much money to make this AI happen. It's

0:39:36.320 --> 0:39:38.279
<v Speaker 16>a really interesting time for him to be doing this,

0:39:38.360 --> 0:39:39.000
<v Speaker 16>that's for sure.

0:39:39.960 --> 0:39:51.520
<v Speaker 3>Bloomberg's Rachel Mattz thank you. Tesla sales have fallen in

0:39:51.600 --> 0:39:55.080
<v Speaker 3>key markets. The electric vehicle maker registered fewer cars. In

0:39:55.080 --> 0:39:58.200
<v Speaker 3>California throughout twenty twenty four. Sales of Model three fell

0:39:58.280 --> 0:40:02.000
<v Speaker 3>by thirty six percent. Meanwhile, in France, the EU's second

0:40:02.040 --> 0:40:06.600
<v Speaker 3>biggest market for battery vehicle vehicles, Tesla saw registrations plummet

0:40:06.640 --> 0:40:07.880
<v Speaker 3>by sixty three percent.

0:40:08.280 --> 0:40:12.160
<v Speaker 2>CARO Meanwhile, EV competition, well, it's been struggling here in

0:40:12.160 --> 0:40:15.480
<v Speaker 2>the United States as well. Jackie Ford particularly vulnerable with

0:40:15.840 --> 0:40:19.240
<v Speaker 2>no new EV models coming for two years. Keith Norton

0:40:19.280 --> 0:40:21.520
<v Speaker 2>has been writing about this in Bloomberg's Big Take, And

0:40:21.560 --> 0:40:26.040
<v Speaker 2>you call it Ford's EV crisis. Why is it a crisis?

0:40:26.080 --> 0:40:29.120
<v Speaker 2>Why postponing new models is it making it a crisis?

0:40:29.200 --> 0:40:29.399
<v Speaker 4>Keith?

0:40:30.120 --> 0:40:32.440
<v Speaker 17>Yeah, So they are going to face this kind of

0:40:32.600 --> 0:40:35.920
<v Speaker 17>EV desert for the next two years where they won't

0:40:35.960 --> 0:40:41.240
<v Speaker 17>have any new electric vehicle models they made. What CEO

0:40:41.320 --> 0:40:44.879
<v Speaker 17>Jim Frowley called a big pivot. Back in August, they

0:40:44.920 --> 0:40:48.600
<v Speaker 17>canceled plans for a big electric suv. They said it

0:40:48.600 --> 0:40:51.040
<v Speaker 17>would have been too pricey, and now they're going to

0:40:51.200 --> 0:40:55.360
<v Speaker 17>instead focus on lower price dvs below thirty thousand dollars,

0:40:55.600 --> 0:40:59.720
<v Speaker 17>as well as something called an extended range electric vehicle,

0:40:59.719 --> 0:41:02.680
<v Speaker 17>which as a small gas engine that recharges the battery.

0:41:02.760 --> 0:41:06.360
<v Speaker 17>So that's their new two pronged strategy, which is fine,

0:41:06.719 --> 0:41:09.760
<v Speaker 17>but that means they have no new evs to sell

0:41:09.880 --> 0:41:12.600
<v Speaker 17>and their model lineup continues to age for the next

0:41:12.640 --> 0:41:13.200
<v Speaker 17>two years.

0:41:14.440 --> 0:41:17.400
<v Speaker 3>Keith, what does this new administration bode for Ford and

0:41:17.400 --> 0:41:20.799
<v Speaker 3>perhaps other electric vehicle makers, especially with Elon Musk so

0:41:20.800 --> 0:41:21.880
<v Speaker 3>close to President Trump.

0:41:22.840 --> 0:41:26.080
<v Speaker 17>Yeah, and you know Elon Musk's cyber truck is now

0:41:26.160 --> 0:41:30.359
<v Speaker 17>out selling Ford's Flune fifty lightning electric pickup truck, which

0:41:30.400 --> 0:41:32.920
<v Speaker 17>is not a good turn of events for Ford. Ford

0:41:33.000 --> 0:41:35.640
<v Speaker 17>also makes one of its other big electric models, the

0:41:35.760 --> 0:41:40.120
<v Speaker 17>Mustang Mocke, down in Mexico, So if that twenty five

0:41:40.160 --> 0:41:43.279
<v Speaker 17>percent tariff threat comes back, that would add a lot

0:41:43.320 --> 0:41:46.279
<v Speaker 17>of cost to the Mustang Mocke. So there is a

0:41:46.320 --> 0:41:49.160
<v Speaker 17>lot hanging in the balance with the decisions that President

0:41:49.160 --> 0:41:49.800
<v Speaker 17>Trump makes.

0:41:49.880 --> 0:41:52.920
<v Speaker 8>Not you know, the least of which that he wants.

0:41:52.680 --> 0:41:54.960
<v Speaker 17>To get rid of that seventy five hundred dollars tax

0:41:55.000 --> 0:41:56.920
<v Speaker 17>credit given to eed buyers.

0:41:57.640 --> 0:42:00.480
<v Speaker 2>Most Keith Norton is a brilliant big take read it.

0:42:00.760 --> 0:42:02.840
<v Speaker 2>Thanks so much for joining. Now that does it for

0:42:02.880 --> 0:42:05.080
<v Speaker 2>this edition of Bloomberg Technology. Do not forget to check

0:42:05.080 --> 0:42:06.720
<v Speaker 2>out our podcast you can find out on the terminal

0:42:06.760 --> 0:42:09.040
<v Speaker 2>as well as online on Apples, Spotify, and iHeart. And

0:42:09.160 --> 0:42:11.600
<v Speaker 2>do not forget to tune in for Earnings after the

0:42:11.640 --> 0:42:14.920
<v Speaker 2>Bell as well. We've got a whole host alphabet AMD

0:42:15.360 --> 0:42:17.879
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0:42:17.880 --> 0:42:19.120
<v Speaker 2>New York and San Francisco.

0:42:20.160 --> 0:42:21.360
<v Speaker 4>This is Bloomberg Technology.