WEBVTT - Intel Joins Musk’s Terafab Project with Tesla, SpaceX, xAI 0:00:02.520 --> 0:00:13.480 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.480 --> 0:00:17.320 from coast to coast with Carolline Hide in New York 0:00:17.600 --> 0:00:20.360 and ever though in San Francisco. 0:00:22.440 --> 0:00:25.200 This is Bloomberg Tech coming up. Intel says it will 0:00:25.280 --> 0:00:29.280 join Elon Musk's terra Fab project with SpaceX Xai and 0:00:29.360 --> 0:00:32.520 Tesla to help refactor silicon fab technology. 0:00:32.560 --> 0:00:35.760 Plus Broadcom gains on expanding agreements with Google. Ananthropic is 0:00:35.760 --> 0:00:37.880 alternative technology to video. 0:00:37.640 --> 0:00:40.800 Builds, and Bill Ackman looks to make a deal for 0:00:40.840 --> 0:00:43.800 the world's largest music company, Universal Music Group. 0:00:44.040 --> 0:00:45.479 Will have the details, but. 0:00:45.520 --> 0:00:48.840 We set the context where the markets are still fixated 0:00:49.159 --> 0:00:52.320 on conflict in the Middle East. We're still all awaiting 0:00:52.760 --> 0:00:55.240 what happens at eight pm New York time today, a 0:00:55.320 --> 0:01:00.120 self imposed deadline by President Trump, and anxiety remains as 0:01:00.120 --> 0:01:02.880 we wonder what will happen in that timeframe. We're currently 0:01:02.880 --> 0:01:04.640 seeing the market off by one and a half percent 0:01:04.720 --> 0:01:07.039 at the moment when down on the nas that one 0:01:07.080 --> 0:01:10.120 hundred Big Tech really feeling some of the risk of environment, 0:01:10.240 --> 0:01:12.160 and we're seeing Brent Crude, of course, climb from one 0:01:12.200 --> 0:01:14.440 point thirty percent as it seems as though the conflict 0:01:14.680 --> 0:01:16.440 continues to intensify ed. 0:01:17.800 --> 0:01:20.319 The big breaking news of the morning, Intel says in 0:01:20.360 --> 0:01:23.959 a post on x that it is joining the terrifab project, 0:01:24.000 --> 0:01:28.000 that is the initiative by SpaceX, XAI and Tesla to 0:01:28.080 --> 0:01:32.080 build out massive compute or chip capacity. The SLOCK was 0:01:32.160 --> 0:01:34.360 up almost five percent one point earlier in the session, 0:01:34.480 --> 0:01:37.640 is now paired those games to two percent. Tesla is 0:01:37.680 --> 0:01:40.280 down four percent. There could be other factors behind that. 0:01:40.680 --> 0:01:42.800 What is going on? What does it mean? Let's get 0:01:42.800 --> 0:01:46.200 the details of Bloomberg's chip reporter Ian King and Bloomberg 0:01:46.240 --> 0:01:49.000 Intelligence senior analyst Mandeep singing in, and I'll. 0:01:48.880 --> 0:01:49.440 Start with you. 0:01:50.120 --> 0:01:52.480 We actually don't know a lot, but tell us what 0:01:52.520 --> 0:01:55.240 we do know from two posts, one by lit boutan 0:01:55.360 --> 0:01:57.880 Intel CEO, and the other by the company itself. 0:01:57.960 --> 0:01:58.160 Yeah. 0:01:58.160 --> 0:02:00.400 I mean what the company is saying is we've got 0:02:00.400 --> 0:02:03.120 lots of technology that they need, whether it's packaging, whether 0:02:03.160 --> 0:02:06.160 it's ship design, whether it's manufacturing technology, and we're just 0:02:06.680 --> 0:02:09.960 very happy to be part of this project. How exactly 0:02:10.000 --> 0:02:12.400 they're going to be part of the project, though, isn't clear. 0:02:13.600 --> 0:02:15.400 Can you give any illumination, Mandi? 0:02:15.600 --> 0:02:18.399 Therefore, we turn to you as to what the upside 0:02:18.480 --> 0:02:22.520 could be what are your most optimistic what are your 0:02:22.520 --> 0:02:25.920 most realistic perspectives of how much this builds Intel's business. 0:02:26.720 --> 0:02:28.639 I mean I look at it this way. You know, 0:02:28.760 --> 0:02:31.720 Elon Musk wants to build data centers in space, and 0:02:31.960 --> 0:02:35.560 every other hyperscaler is spending over one hundred billion dollars 0:02:35.639 --> 0:02:40.280 in CAPEX this year to set up terrestrial data centers. 0:02:40.360 --> 0:02:43.560 So in this case, Elon Musk clearly wants to set 0:02:43.639 --> 0:02:47.880 up fabs instead of focusing on data centers, you know, investments, 0:02:47.880 --> 0:02:52.040 and his thing is I can build a vertically integrated 0:02:52.080 --> 0:02:56.600 fab that can make chips for the space data centers 0:02:56.600 --> 0:02:59.679 that he's focused on, and for Intel, you know, it's 0:02:59.760 --> 0:03:03.640 just another avenue to capture in terms of this build 0:03:03.680 --> 0:03:06.880 out of the AI infrastructure that we are seeing around us. 0:03:06.919 --> 0:03:10.560 Clearly TSMC has a big lead, but I think if 0:03:10.560 --> 0:03:14.359 he were, like Intel, where to focus on space data centers, 0:03:14.840 --> 0:03:17.840 they could find that opportunity for growth. 0:03:18.600 --> 0:03:21.240 And that's a picture of Elon Musk. I think down 0:03:21.240 --> 0:03:25.320 in Santa Clara shaking hands with lit Boutan seems easy, 0:03:25.480 --> 0:03:28.360 doesn't it. But as we putting copy in our reporting, 0:03:28.840 --> 0:03:31.880 the economics of chip making are brutal. You have to 0:03:31.919 --> 0:03:34.560 get it right, which you help the Bloomberg Tech audience 0:03:34.639 --> 0:03:38.800 understand the reality of what Tesla, SpaceX and Xai are 0:03:38.800 --> 0:03:39.720 proposing to do. 0:03:40.520 --> 0:03:43.160 Yeah, I mean, the massive build out that they're proposing 0:03:43.640 --> 0:03:46.400 would not be supported by the kind of volumes that 0:03:46.440 --> 0:03:49.400 they are able to consume right now. It probably doesn't 0:03:49.440 --> 0:03:53.080 make economic sense for them. But if they're doing that 0:03:53.240 --> 0:03:56.080 in a partnership, if they're doing that to maybe sell 0:03:56.120 --> 0:03:58.840 silicon to other people, then maybe the numbers do start 0:03:58.880 --> 0:04:01.200 to add up. You've got to flip that the other 0:04:01.200 --> 0:04:03.400 way and say, well, hold on a minute, what's Intel 0:04:03.480 --> 0:04:06.240 up to here? Intel really has its own plants that 0:04:06.280 --> 0:04:08.160 it needs to fill. So if there's some kind of 0:04:08.200 --> 0:04:12.640 a bridging arrangement where Tesla becomes a customer of Intel, 0:04:12.680 --> 0:04:16.320 helps give Intel orders, and then that branches out into 0:04:16.360 --> 0:04:18.560 some kind of partnership in the future where they build 0:04:18.600 --> 0:04:22.280 plants together, then maybe that's a more logical path and 0:04:22.880 --> 0:04:24.680 probably safer for both of them. 0:04:24.880 --> 0:04:29.520 Mandy, the world is changing when it comes to those 0:04:29.560 --> 0:04:32.120 that are at the forefront of compute and those that 0:04:32.160 --> 0:04:36.479 are consuming it. You know, Tesla designs its own inference chips, 0:04:36.520 --> 0:04:39.719 for example, current generation AI five, going into AI four, 0:04:39.760 --> 0:04:42.600 AI five and then AI six. It's never made its 0:04:42.640 --> 0:04:47.360 own chips. The BI team across all the analysts in 0:04:47.440 --> 0:04:50.200 the different desks. Are you having to kind of remodel 0:04:50.640 --> 0:04:53.320 where everyone sits in that world going forward? 0:04:53.800 --> 0:04:57.000 Yeah, I mean the ecosystems clearly are determined by which 0:04:57.120 --> 0:04:59.520 large angrid model is doing well. I mean, just today 0:04:59.560 --> 0:05:03.040 we heard of Entropic reaching thirty billion dollar run rate 0:05:03.440 --> 0:05:07.280 that I think is favorable to that Entropic ecosystem that 0:05:07.360 --> 0:05:10.640 includes Broadcom and TPUs. And look when it comes to fabs, 0:05:11.040 --> 0:05:14.359 so far we know everyone is going to TSMC, So 0:05:14.560 --> 0:05:17.240 it's quite interesting that, you know, Elon Musk wants to 0:05:17.320 --> 0:05:20.440 develop an alternative to that FAB. But as we know, 0:05:20.600 --> 0:05:23.560 you know, Intel has struggled for so many years in 0:05:23.680 --> 0:05:28.320 terms of reaching that leading node capacity. So from that perspective, 0:05:28.400 --> 0:05:31.279 it is a pretty big undertaking and it requires a 0:05:31.320 --> 0:05:33.960 lot of capex. I mean TSMC's capex is north of 0:05:34.000 --> 0:05:36.960 fifty billion dollars, So what would it take to build 0:05:37.000 --> 0:05:39.400 a FAB, you know, in terms of capex investments? 0:05:40.000 --> 0:05:42.080 Can I just say one thing as well, Karen Mandy, IP, 0:05:42.120 --> 0:05:44.920 I'm sorry, I just want to state it that terror 0:05:44.920 --> 0:05:49.560 fab is not included in Tesla's twenty six CAPEX guide 0:05:49.360 --> 0:05:52.640 of twenty billion dollars, far beyond what it's ever done, 0:05:52.800 --> 0:05:54.640 But just putting it out there, and I'll keep saying 0:05:54.680 --> 0:05:56.880 it until the terrorfab's built carriage. 0:05:58.200 --> 0:06:00.800 It's been a fascinating bit of perspective from all three 0:06:00.839 --> 0:06:03.240 of you. Actually, because of Ed, you're the byline on 0:06:03.240 --> 0:06:04.040 this story thus far. 0:06:04.200 --> 0:06:05.600 In King always with all the. 0:06:05.520 --> 0:06:07.600 Insight when it comes to Intel, Mande, thank you for 0:06:07.640 --> 0:06:10.120 the intelligence of BlueBag intelligence. So let's get you more 0:06:10.120 --> 0:06:12.560 insight now, because Giluri has already been putting his reaction 0:06:12.680 --> 0:06:15.240 to paper, head of tech researcher at DA Davidson. Look, 0:06:15.240 --> 0:06:18.200 you said the investment bodes well for Intel's turnaround story. 0:06:18.760 --> 0:06:20.919 Does this really strengthen the balance sheet? 0:06:20.960 --> 0:06:24.080 How does this look to be boding? Well? 0:06:24.440 --> 0:06:28.279 Yeah, so Intel's been busy in its turnaround. It made 0:06:28.279 --> 0:06:32.240 a really big step in repurchasing forty nine percent of 0:06:32.320 --> 0:06:36.919 its Ireland fab back from Apollo, and then you have 0:06:37.000 --> 0:06:42.760 this morning's announcement with Tesla. Intel has all the most 0:06:42.800 --> 0:06:46.320 important pieces right now. It's a US based company with 0:06:46.560 --> 0:06:52.160 US based production that makes CPUs and has advanced packaging. 0:06:52.240 --> 0:06:55.080 These are all things that we need for the future 0:06:55.080 --> 0:06:57.480 of AI. These are three things that if I said 0:06:57.520 --> 0:07:00.280 three years ago, they weren't matter that much, and right 0:07:00.320 --> 0:07:05.159 now each one of those things is absolutely critical. It's 0:07:05.240 --> 0:07:08.200 not trivial though, that Intel will be successful. I think 0:07:08.240 --> 0:07:11.200 that came up in your conversation with Mandeep. There's a 0:07:11.320 --> 0:07:16.400 lot of execution ahead. They need to successfully build planes 0:07:16.440 --> 0:07:20.200 in the US, build fabrication for their next waves of technology, 0:07:20.680 --> 0:07:24.360 including this big joint venture with Tesla, and then get 0:07:24.400 --> 0:07:27.240 the yields that make them profitable. As you point it out, 0:07:27.240 --> 0:07:30.240 TSMC has been doing this for years with great levels 0:07:30.280 --> 0:07:33.559 of success, and Intel still loses money on the fab 0:07:33.680 --> 0:07:37.480 side and doesn't have enough core customers to have that 0:07:38.200 --> 0:07:42.520 volume quite yet. It's lining up their customers, but it's 0:07:42.560 --> 0:07:45.840 not quite there yet, and so there's a lot of 0:07:45.920 --> 0:07:49.440 execution ahead. But in terms of executing on the turnaround, 0:07:49.760 --> 0:07:54.600 Libutan's doing a lot to make Intel an important player 0:07:54.640 --> 0:07:55.559 in the future of AI. 0:07:55.800 --> 0:07:56.080 Guild. 0:07:56.120 --> 0:07:58.600 You like the idea because Lipbutan came on as some 0:07:59.400 --> 0:08:02.960 well cynicism, or indeed was beaten up a little bit 0:08:03.000 --> 0:08:05.440 even by on the administration of the United States because 0:08:05.480 --> 0:08:06.960 they didn't really like the way in which he was 0:08:07.000 --> 0:08:10.000 proposing it as build it and then they will come. 0:08:10.200 --> 0:08:12.200 He wanted to go more like, I need the customers 0:08:12.240 --> 0:08:14.160 first and then I'm going to go out and build it. 0:08:14.200 --> 0:08:17.000 Is this enough of a customer so they will therefore 0:08:17.120 --> 0:08:19.240 start to put back onto the R and D start 0:08:19.320 --> 0:08:23.360 to refuel the actual manufacturing and build out that perhaps 0:08:23.400 --> 0:08:24.000 it paus on. 0:08:25.840 --> 0:08:28.680 If we believe Elon Musk and the numbers he's been 0:08:28.720 --> 0:08:31.240 talking about, that's as much scale as you're going to 0:08:31.280 --> 0:08:37.120 get the numbers that he talks about four XAI for SpaceX. 0:08:37.600 --> 0:08:39.400 I mean we're talking about building in the US now. 0:08:39.440 --> 0:08:43.720 Elon's talked about having fabrication plants on the Moon. So 0:08:43.920 --> 0:08:47.200 if we are to fulfill all of those and Elon 0:08:47.280 --> 0:08:49.400 gets what he wants, that's plenty of volume. Let's not 0:08:49.480 --> 0:08:52.840 forget in video. As an investor in Intel, that's volume. 0:08:52.880 --> 0:08:55.840 There's still a relationship with Apple, that's a lot of volume. 0:08:56.320 --> 0:09:01.440 So Intel has positioned itself to have the volumes necessary 0:09:01.520 --> 0:09:04.439 to bring the customers to the table, to have the 0:09:04.520 --> 0:09:09.240 volumes necessary to be profitable on the fabrication side. It 0:09:09.320 --> 0:09:11.959 really is a matter of execution over the next several 0:09:12.080 --> 0:09:16.040 years to get those customers what they want with the 0:09:16.120 --> 0:09:20.120 high expectations those customers have. Let's not forget those customers 0:09:20.160 --> 0:09:24.120 are being served very well by TSMC. This is volume 0:09:24.200 --> 0:09:28.360 beyond TSMC, but their expectations are still anchored to what 0:09:28.480 --> 0:09:30.960 they get from TSMC, which is very high yield. 0:09:31.080 --> 0:09:34.439 Can we go nitty gritty because Tesla has relationships for 0:09:34.520 --> 0:09:37.120 its own shipbuilding at the moment, and they lie with 0:09:37.160 --> 0:09:39.280 Samsung and they lie with TSMC. 0:09:39.440 --> 0:09:42.040 So how divert what chips in. 0:09:41.960 --> 0:09:44.960 Particular expecting to be made by Intel or indeed, where 0:09:44.960 --> 0:09:46.880 do we see the supply reshift? 0:09:47.520 --> 0:09:49.800 Well, I'm not sure we got that detail today, but 0:09:49.880 --> 0:09:52.440 broadly speaking, these days, if you look at the broad 0:09:52.600 --> 0:09:57.439 patterns this conversation, the conversation yesterday about Broadcom, Google and 0:09:57.559 --> 0:10:02.000 Anthropic Meta shining up AMD, Open Ai signing up with 0:10:02.120 --> 0:10:05.520 AMD and with Broadcom and continuing to use in video. 0:10:06.000 --> 0:10:09.560 The approach of all the big players, so the hyper 0:10:09.559 --> 0:10:13.640 scalers and the big frontier labs which includes Elon Inc. 0:10:14.679 --> 0:10:19.880 Is to diversify around all of these large chip makers 0:10:20.559 --> 0:10:24.160 in order to be able to meet this very significant 0:10:24.320 --> 0:10:28.120 demand that they all have for chips. So they all 0:10:28.200 --> 0:10:32.000 are still most of these companies are still mostly reliant 0:10:32.040 --> 0:10:36.120 on Invidia, but they want to rely more on Broadcom, 0:10:36.200 --> 0:10:39.720 AMD and Intel, so they're not beholden in video, so 0:10:39.760 --> 0:10:42.959 they have more capacity. What that looks like in terms 0:10:42.960 --> 0:10:45.960 of mix, I'm not sure they know. I think they're 0:10:46.000 --> 0:10:49.280 going to move forward and expand as aggressively as they can, 0:10:49.840 --> 0:10:53.480 and the chip companies that help them the most, that 0:10:53.640 --> 0:10:56.600 execute the best, will get the volumes. That's why execution 0:10:56.720 --> 0:10:57.760 is so important right now. 0:10:58.000 --> 0:11:02.920 Gloria Da Davison and Analysis, thank you very much. Indeed, Meanwhile, 0:11:03.000 --> 0:11:05.080 let's look at shares that aren't gaining at the moment. 0:11:05.120 --> 0:11:09.640 Apple significant move off by almost five percent at the moment, 0:11:09.720 --> 0:11:12.960 and as Ed would put it, that's a two standard deviation. 0:11:12.920 --> 0:11:14.960 Move at the moment on this particular stock. 0:11:15.200 --> 0:11:18.240 Why reports adad nickeo so over in Japan that there 0:11:18.280 --> 0:11:22.040 are issues with the foldable iPhone engineering snags. 0:11:22.120 --> 0:11:23.680 Maybe we have to push back. 0:11:23.559 --> 0:11:26.000 Test phases for the foldable iPhone, Maybe it pushes back 0:11:26.000 --> 0:11:28.760 production and shipment schedules. That is what the report is saying, 0:11:28.840 --> 0:11:32.120 citing unidentified people. We're currently off almost five percent on 0:11:32.160 --> 0:11:34.720 a down market. Meanwhile, coming up, President Trump ramps up 0:11:34.760 --> 0:11:39.240 his escalations with Iran vidill isn't reached by tonight, We're. 0:11:39.120 --> 0:11:40.680 On that next. There's a bluemog tech. 0:11:49.960 --> 0:11:53.800 President Trump has escalated threats to Iran, warning that quote 0:11:54.240 --> 0:11:57.439 a whole civilization will die tonight if for deal is 0:11:57.480 --> 0:12:01.320 not reached for more Bloomberg's Tyler Kendall for more, and 0:12:01.400 --> 0:12:03.400 it feels as though the rhetoric. 0:12:03.360 --> 0:12:06.280 Is styling up what's happening behind the scenes tyer. 0:12:07.040 --> 0:12:10.000 Hey, Caroline Well. At this point, the indication from the 0:12:10.000 --> 0:12:12.400 White House is that they are not going to back 0:12:12.480 --> 0:12:15.600 off of their threat of eight pm Eastern tonight. Amid 0:12:15.679 --> 0:12:19.440 reporting that Iran is now cutting off communication with the 0:12:19.600 --> 0:12:22.080 US in the wake of President Trump's post on a 0:12:22.160 --> 0:12:25.600 truth social there is reporting that it is unclear if 0:12:25.640 --> 0:12:29.600 these talks could resume, either directly or indirectly ahead of 0:12:29.640 --> 0:12:30.640 tonight's deadline. 0:12:30.760 --> 0:12:30.920 Now. 0:12:30.920 --> 0:12:33.400 The President's post is of course raising some legal and 0:12:33.559 --> 0:12:37.720 humanitarian questions, though experts have said that it will ultimately 0:12:37.760 --> 0:12:40.000 come down to the size and scope of what actually 0:12:40.080 --> 0:12:43.680 happens tonight, because under international law, a military is allowed 0:12:43.679 --> 0:12:46.760 to strike key infrastructure if it one contributes to a 0:12:46.800 --> 0:12:50.280 military operation. This idea of dual use. If a bridge 0:12:50.360 --> 0:12:53.480 is used to help transport weapons, for example, and two 0:12:53.679 --> 0:12:57.120 if civilian harm is minimized. We've already started to see 0:12:57.520 --> 0:13:01.959 some strikes happening earlier today against Larry targets in particular, 0:13:02.080 --> 0:13:05.840 including on carg Island, as carg Island remains absolutely central 0:13:05.880 --> 0:13:07.800 when it comes to the strait of her moves. And 0:13:07.920 --> 0:13:10.160 yesterday we got a little bit more clarity from this 0:13:10.240 --> 0:13:12.880 White House that they do need to see a reopening 0:13:12.960 --> 0:13:16.400 of that waterway in order to agree to any potential 0:13:16.520 --> 0:13:18.880 cease fire deal. We're going to have to wait to 0:13:18.880 --> 0:13:21.760 see what happens, because in that same post from President Trump, 0:13:21.960 --> 0:13:24.680 he also said quote who knows what will happen, And 0:13:24.760 --> 0:13:27.880 yesterday he said that he felt that Iran was negotiating 0:13:27.960 --> 0:13:30.640 in good faith. Caroline. We heard earlier today from Vice 0:13:30.720 --> 0:13:33.720 President jd Vance who said that he felt confident that 0:13:33.760 --> 0:13:36.920 the US would get some sort of response from Iran 0:13:37.000 --> 0:13:39.840 ahead of tonight's eight pm Eastern deadline. But this White 0:13:39.840 --> 0:13:42.760 House maintains that what happens tonight is going to be 0:13:42.880 --> 0:13:46.160 on how Iran ultimately responds, And so far we have 0:13:46.200 --> 0:13:49.319 only seen this hard line stance taken Big. 0:13:49.160 --> 0:13:52.160 Mex Tyler Kendall. We appreciate it. Everything from the White House. 0:13:52.200 --> 0:13:55.439 Meanwhile, big tech stocks they remain under pressure yet again 0:13:55.480 --> 0:13:56.800 amid the Middle East concerns. 0:13:57.000 --> 0:13:59.199 This is a growing chorus on wool Street. 0:13:59.320 --> 0:14:02.280 She starts making case for why did it, including Goldman's 0:14:02.320 --> 0:14:05.320 Peter Oppenheimer. He says the recent pullback is creating more 0:14:05.320 --> 0:14:09.080 attractive entry points and that tech valuations have now slipped below. 0:14:09.000 --> 0:14:10.240 The broader global market. 0:14:10.600 --> 0:14:13.760 Let's continue the debate with RBC Bruined Dolphin's Janet Mui, 0:14:13.840 --> 0:14:16.679 who says, well, last week's secuity rebound, you thought it 0:14:16.720 --> 0:14:19.920 was not one to chase, So do we just stampat 0:14:20.000 --> 0:14:20.520 for the time being? 0:14:20.600 --> 0:14:23.760 Janet, Hi, Caroline, thanks for having me. 0:14:24.120 --> 0:14:26.320 Yeah, yes, I think we just need to stay put 0:14:26.360 --> 0:14:30.160 for now and monitor the situation. I think the reason 0:14:30.440 --> 0:14:33.720 why we don't chase the rally from last week is 0:14:33.760 --> 0:14:38.440 simply because the Iran situation is unlikely to be resolved 0:14:38.480 --> 0:14:42.400 anytime soon, and I think with oil prices being elevated 0:14:42.600 --> 0:14:45.440 like this, I think it will put pressure on global 0:14:45.440 --> 0:14:49.000 growth and of course put upside risk to inflation. And 0:14:49.280 --> 0:14:52.720 at this point Central banks rade cut agenda is being 0:14:52.760 --> 0:14:56.480 abandoned and there could be rate heights going forward, and 0:14:56.760 --> 0:15:00.160 physically speaking, global governments will find it very tough to 0:15:00.200 --> 0:15:04.760 support consumers in any form because of the physical deficit situation. 0:15:05.000 --> 0:15:05.560 So only know. 0:15:05.640 --> 0:15:08.520 I think from a micro perspective, there's still a lot 0:15:08.560 --> 0:15:12.240 of uncertainty and certainly risk tilted to the downside. 0:15:12.400 --> 0:15:13.360 So I think it's. 0:15:13.320 --> 0:15:16.520 Not really the right moment to chase the last week's 0:15:16.560 --> 0:15:20.120 really and as we are speaking, the markets have seen 0:15:20.200 --> 0:15:23.840 renew weakness again because the situation is just so unclear. 0:15:24.040 --> 0:15:25.640 How have you been protecting the downside? 0:15:25.680 --> 0:15:26.040 Janet? 0:15:27.800 --> 0:15:30.200 Yeah, So I think we need to think really deeply 0:15:30.280 --> 0:15:33.880 about the inflation prospect because if you think about the 0:15:33.960 --> 0:15:38.920 various scenarios, the path of list resistance is basically elevated 0:15:39.120 --> 0:15:43.360 or prices for prolonged period because even if we see 0:15:43.400 --> 0:15:47.360 the escalation, a lot of the energy assets have been destroyed, 0:15:47.400 --> 0:15:51.960 so we don't expect near term normalization in terms. 0:15:51.680 --> 0:15:53.360 Of oil flows or supply, so. 0:15:53.800 --> 0:15:58.160 Inflation being higher in the near term or longer is 0:15:58.200 --> 0:16:02.480 basically the base case here. We like our energy stock 0:16:02.560 --> 0:16:06.600 exposure in portfolio to hash against that risk, and the 0:16:06.720 --> 0:16:11.920 energy major state pay quite good dividends, so that's another 0:16:11.960 --> 0:16:12.840 attractive point. 0:16:13.240 --> 0:16:15.000 And we like our gold. 0:16:14.760 --> 0:16:18.280 As an inflation hash and goal price being down from 0:16:18.320 --> 0:16:21.840 their highs really provide relatively good at our entry point. 0:16:21.920 --> 0:16:25.640 We also like inflation linked bonds because that you know, 0:16:25.800 --> 0:16:28.880 it can hash against that high inflation outlook. 0:16:29.440 --> 0:16:32.120 To bring it back to technology, which is hard in 0:16:32.160 --> 0:16:36.160 the current global context. Janet, just at what point do 0:16:36.280 --> 0:16:39.800 you focus in on fundamental business news and what point 0:16:39.800 --> 0:16:42.320 are you looking at the headlines coming from broad Comic 0:16:42.360 --> 0:16:45.360 spanning its deal, if you're looking what's happening with anthropics 0:16:45.440 --> 0:16:46.880 run Rain and what that means to the rest of 0:16:46.920 --> 0:16:49.680 the ecosystem. When you're hearing Matt Intel going in with 0:16:49.760 --> 0:16:53.080 a terrorfab potentially of course of ed On Musks, does 0:16:53.160 --> 0:16:57.000 any of that drive companies investors to want to go 0:16:57.040 --> 0:16:58.880 and allocate or do you think for now you just 0:16:58.960 --> 0:17:01.200 have to sit back and mid the global context, which 0:17:01.280 --> 0:17:04.440 is one of concern and instability. 0:17:05.240 --> 0:17:07.840 I think the two themes can go in parallel. 0:17:07.840 --> 0:17:10.639 Obviously, the macro risk and the Iran wall is front 0:17:10.680 --> 0:17:14.400 and center, and ultimately that affects sentiment, But we always 0:17:14.480 --> 0:17:16.719 look at the fundamental. 0:17:16.119 --> 0:17:16.920 Drivers as well. 0:17:17.160 --> 0:17:19.800 And even though I was saying that we're not chasing 0:17:19.800 --> 0:17:24.520 the rally, we have to understand that there has been 0:17:24.560 --> 0:17:27.960 a lot of discount have a discount in selected high 0:17:28.080 --> 0:17:32.439 quality growth TEX stocks, some of that in software, some 0:17:32.520 --> 0:17:35.040 of them in the picks and Shovels play of the 0:17:35.119 --> 0:17:38.880 AI infrastructure play. I'm not gonna name names, but there's 0:17:38.880 --> 0:17:43.520 some really attractive discount happening in the past couple of months. 0:17:43.520 --> 0:17:46.600 So we are closely monitoring that situation. 0:17:46.920 --> 0:17:49.320 So I think you know, at the moment we're keeping 0:17:49.320 --> 0:17:51.479 a bit of a higher cash level than normal. 0:17:51.760 --> 0:17:54.120 So certainly if there are. 0:17:54.160 --> 0:17:59.800 Further discounting because of the volatility in Marquess will certainly 0:18:00.240 --> 0:18:03.760 be finding opportunities to add further to those positions. 0:18:04.119 --> 0:18:06.200 How much are the American how much are they international? 0:18:08.960 --> 0:18:12.000 For the tech sector exposure, also, that is still American 0:18:12.040 --> 0:18:15.840 exposure because if you look at the tech AI picks 0:18:15.920 --> 0:18:20.719 and Shovels play, which remain our favorite, because that area 0:18:20.800 --> 0:18:26.280 we think is very strong growth driver, irrespective of you know, 0:18:26.359 --> 0:18:29.880 whether some software is going obsolete or not, because there 0:18:29.920 --> 0:18:34.000 are the fundamental layer of the tech the AI build out. 0:18:34.119 --> 0:18:38.480 So most of that is American exposure, and of course 0:18:38.480 --> 0:18:42.760 we have some Asian exposure name but I would say 0:18:42.760 --> 0:18:43.800 most is still American. 0:18:44.560 --> 0:18:49.439 Jenny m of RBC Bruin Dolphin tough to talk just 0:18:49.520 --> 0:18:51.560 stocks in tech, but you managed to do it for us. 0:18:51.560 --> 0:18:54.160 We really appreciate it. Me while coming up, blackman sets 0:18:54.160 --> 0:18:56.560 his eyes in a universal music group. The sixty five 0:18:56.560 --> 0:18:59.720 billion dollars deal on on that next is a pretty. 0:18:59.440 --> 0:19:09.639 Bad tech time now for talking tech. 0:19:09.480 --> 0:19:12.960 And first up aerospace startup Permias has raised three hund 0:19:13.000 --> 0:19:15.520 and fifty million dollars in funding round, boosting its valuations 0:19:15.600 --> 0:19:18.280 one million dollars. The Atlanta based company plans to build 0:19:18.400 --> 0:19:20.960 an unmanned fighter for the US military, able to fly 0:19:21.200 --> 0:19:23.200 at mark three or three times to speed of sound. 0:19:23.240 --> 0:19:23.359 Now. 0:19:23.359 --> 0:19:25.760 Hews is set to use the new capital to build 0:19:25.880 --> 0:19:27.399 two more planes and ramp. 0:19:27.359 --> 0:19:28.600 Up the manufacturing capacity. 0:19:28.920 --> 0:19:32.240 Plus, Blackstone backed QTS drew about twelve point five billion 0:19:32.280 --> 0:19:34.800 dollars for a debut high grade bond sale. 0:19:34.480 --> 0:19:37.600 That will help funder Microsoft Data center. That's according to sources. 0:19:37.640 --> 0:19:39.800 The bond sell is the latest in a waiver borrowing 0:19:39.840 --> 0:19:43.280 tied to new AI infrastructure build ups and data center 0:19:43.440 --> 0:19:47.280 builder Firmis Technologies has raised five hundred and five million dollars, 0:19:47.359 --> 0:19:50.119 valuing the Australian startup at five point five billion now. 0:19:50.160 --> 0:19:52.560 The round was led by co To Management and Participation 0:19:52.600 --> 0:19:55.159 from Video. Furmas says that the cash will go towards 0:19:55.240 --> 0:19:58.000 the rapid deployment of AI hardware based on forthcoming and 0:19:58.080 --> 0:20:00.439 video tech, but over an age of Pacific region. 0:20:02.480 --> 0:20:04.800 Well hello again. Shares of Universal Music Group. 0:20:04.840 --> 0:20:07.480 This is the Amsterdam trading up twelve percent, on track 0:20:07.520 --> 0:20:10.800 for their biggest day ever, having opened up twenty four percent. 0:20:10.840 --> 0:20:16.199 Proposed proposal from Bill Ackman for Universal Music Group, the 0:20:16.200 --> 0:20:19.359 world's largest music company which houses the likes of Taylor Swift, 0:20:19.440 --> 0:20:24.000 Drake and Saprina Carpenter. It is a complicated potential deal. 0:20:24.040 --> 0:20:27.800 Bloomberg's Ben wa Bertelo covers European Media and Attainment joins us. 0:20:27.800 --> 0:20:32.520 Now it is complicated, unsurprising you have Ackman deal and music. 0:20:32.560 --> 0:20:34.920 It's one of the most read stories on the Bloomberg terminal. 0:20:35.359 --> 0:20:38.080 Just give us the very basics of what the proposal is. 0:20:40.560 --> 0:20:43.879 So basically, it's a plan to merge Niversal Music Group 0:20:44.000 --> 0:20:47.320 with a blunk check company that the legman that has 0:20:47.320 --> 0:20:50.840 creately did for these It's a merger that give a 0:20:50.880 --> 0:20:55.640 valuation of fifty six billion euros to Universal cash component 0:20:55.720 --> 0:20:59.840 of the dv's the belt nine billion. And basically, whether 0:20:59.840 --> 0:21:03.760 you wants to achieve is to relocate the listing from 0:21:03.840 --> 0:21:08.600 Amsterdam to New York as a primary listing. He just 0:21:08.640 --> 0:21:12.720 made a call to investor and Acman said that it 0:21:12.720 --> 0:21:15.359 would make more sense for Universal to be listed in 0:21:15.440 --> 0:21:20.600 the US, giving that the operational center, the decision making 0:21:20.960 --> 0:21:25.680 is made in the US on the East coast, and 0:21:26.520 --> 0:21:29.239 so that's his main point really for this deal, and 0:21:29.320 --> 0:21:32.560 he said it would make more sense for analysts cover 0:21:32.840 --> 0:21:36.719 the peers of universals to cover the company being listed 0:21:36.760 --> 0:21:37.560 in the US. 0:21:38.320 --> 0:21:42.080 What's interesting is that, of course this has got some skepticism. 0:21:42.520 --> 0:21:43.320 He can talk to. 0:21:43.320 --> 0:21:45.720 Investors all he likes, but there's really one key investor 0:21:45.720 --> 0:21:48.359 who needs to convince, who sat over in France as 0:21:48.400 --> 0:21:51.960 a billionaire talk to us about well Vincent Belore and 0:21:52.160 --> 0:21:54.200 whether he's going to go along with it. 0:21:55.520 --> 0:21:58.399