1 00:00:02,560 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,480 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,920 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:17,040 --> 00:00:20,119 Speaker 1: I'm Tim Stadovak along with Carol Masser. Let's take a 5 00:00:20,160 --> 00:00:21,759 Speaker 1: look at some stocks on the move. 6 00:00:21,960 --> 00:00:25,520 Speaker 3: We're talking about Intel, which rallied this on a story 7 00:00:25,760 --> 00:00:28,520 Speaker 3: on how the Trump administration is set to be in 8 00:00:28,560 --> 00:00:31,720 Speaker 3: talks with Intel to have the US government potentially take 9 00:00:31,760 --> 00:00:34,520 Speaker 3: a stake in the company, and this scene as maybe 10 00:00:34,520 --> 00:00:37,839 Speaker 3: helping support Intel' efforts to expand domestic manufacturing. Now, this 11 00:00:37,920 --> 00:00:41,320 Speaker 3: deal would help shore up Intel's planned factory hub and Ohio. 12 00:00:41,400 --> 00:00:43,879 Speaker 3: This is according to people familiar with the plan, who 13 00:00:44,000 --> 00:00:46,560 Speaker 3: said the idea is for the US government to pay 14 00:00:46,760 --> 00:00:49,720 Speaker 3: for the stake. And we know that Intel has been 15 00:00:49,720 --> 00:00:53,840 Speaker 3: going through working on a turnaround, cutting costs, cutting workers, 16 00:00:53,880 --> 00:00:57,440 Speaker 3: cutting jobs and so. And it also comes at a 17 00:00:57,440 --> 00:01:01,120 Speaker 3: time that we know President Trump was critical of the 18 00:01:01,280 --> 00:01:04,600 Speaker 3: CEO of Intel at Bhutan. They had a meeting and 19 00:01:04,640 --> 00:01:06,480 Speaker 3: the President seemed to be more impressed. 20 00:01:06,720 --> 00:01:08,440 Speaker 1: Yeah, we could go tell he was calling for his 21 00:01:08,480 --> 00:01:10,120 Speaker 1: ouster exactly. 22 00:01:09,880 --> 00:01:12,120 Speaker 3: And then changing really's tone. And then we have this 23 00:01:12,200 --> 00:01:14,760 Speaker 3: story again, nothing is a done deal. But this is 24 00:01:14,800 --> 00:01:16,360 Speaker 3: again some of the reporting. 25 00:01:16,120 --> 00:01:19,520 Speaker 1: The story the Byeline Ryan Gould, josh Win Grove, and 26 00:01:19,640 --> 00:01:23,000 Speaker 1: Leanna Baker. Ryan Gould is in here from our deal's team. 27 00:01:23,040 --> 00:01:24,720 Speaker 1: He's deals reporter for Bloomberg News. 28 00:01:24,760 --> 00:01:28,680 Speaker 4: First to say, wait what I mean? Yeah, seriously, what 29 00:01:29,040 --> 00:01:31,720 Speaker 4: a what a time to be alive? I guess you know, 30 00:01:31,880 --> 00:01:35,800 Speaker 4: it's shocking. I mean, it's really it's really a headline. 31 00:01:35,800 --> 00:01:37,720 Speaker 4: It's quite a statement. I think, let's just recap so 32 00:01:37,880 --> 00:01:39,640 Speaker 4: Intel cha has jumped as much as eight percent on 33 00:01:39,680 --> 00:01:42,720 Speaker 4: this headline that the Trump administration is said to be 34 00:01:42,800 --> 00:01:45,679 Speaker 4: discussing taking a stake in Intel. I mean, let's just 35 00:01:45,720 --> 00:01:49,120 Speaker 4: be clear, this is kind of unprecedented. I mean, we 36 00:01:49,240 --> 00:01:51,080 Speaker 4: kind of saw an example with MP materials that you 37 00:01:51,080 --> 00:01:53,080 Speaker 4: guys just talked about them a short while ago. But 38 00:01:53,160 --> 00:01:55,960 Speaker 4: I mean, if you think about how we sort of 39 00:01:56,040 --> 00:01:58,000 Speaker 4: if you're an investment banker or a deal's lawyer and 40 00:01:58,040 --> 00:01:59,920 Speaker 4: you think about, you know, a company that's been in 41 00:02:00,080 --> 00:02:03,680 Speaker 4: trouble and is looking to rebuild, did you think that 42 00:02:03,720 --> 00:02:05,960 Speaker 4: the US government would be a source of outside capital 43 00:02:06,000 --> 00:02:08,200 Speaker 4: to help you, you know, as part of the tool 44 00:02:08,240 --> 00:02:10,079 Speaker 4: kit to help this company we built. I'm not sure 45 00:02:10,120 --> 00:02:12,880 Speaker 4: many people did, and here we are. We're looking at, 46 00:02:13,040 --> 00:02:15,560 Speaker 4: you know, talks that could help Intel rebuild not only 47 00:02:15,600 --> 00:02:19,040 Speaker 4: its manufacturing presence, but toward a specific area, which is 48 00:02:19,080 --> 00:02:21,760 Speaker 4: the Ohio plant that, even under the former CEO of 49 00:02:21,760 --> 00:02:24,600 Speaker 4: Pac Gelsinger, was kind of seen as a very very 50 00:02:24,680 --> 00:02:26,600 Speaker 4: key part of making Intel grate again. 51 00:02:26,760 --> 00:02:29,280 Speaker 1: I thought they were pulling back on the Ohio plant. 52 00:02:29,320 --> 00:02:32,600 Speaker 1: That's what we learned just in recent weeks, recent months, 53 00:02:32,639 --> 00:02:34,079 Speaker 1: from the company's latest report. 54 00:02:34,440 --> 00:02:36,720 Speaker 4: That's true. And I think if you listened to le 55 00:02:36,840 --> 00:02:40,080 Speaker 4: boutin Intel C we visited the White House just days 56 00:02:40,080 --> 00:02:43,119 Speaker 4: ago on the most recent Intel earning score, he made 57 00:02:43,120 --> 00:02:45,119 Speaker 4: it quite clear that this is about sort of right 58 00:02:45,160 --> 00:02:47,440 Speaker 4: sizing the house looking inward. 59 00:02:48,240 --> 00:02:50,119 Speaker 1: So how would a deal like this work. I mean, 60 00:02:50,240 --> 00:02:52,760 Speaker 1: we've spoke to Jim Litinski at MP Materials about the 61 00:02:52,800 --> 00:02:56,799 Speaker 1: Department of Defenses four hundred million dollar investment, and that's 62 00:02:56,840 --> 00:02:59,720 Speaker 1: certainly I feel like Carol, we're referencing that interview all 63 00:02:59,760 --> 00:03:01,880 Speaker 1: the time now, whether we're talking about we grew the 64 00:03:01,960 --> 00:03:05,560 Speaker 1: Industrial policy or we're talking about exactly rare earths. I mean, 65 00:03:06,160 --> 00:03:07,840 Speaker 1: I think the question that I that I have is 66 00:03:07,880 --> 00:03:10,240 Speaker 1: what would an investment from the United States look like, 67 00:03:10,320 --> 00:03:13,519 Speaker 1: what control would they have? And is money enough to 68 00:03:13,919 --> 00:03:14,880 Speaker 1: turn Intel around? 69 00:03:15,280 --> 00:03:17,280 Speaker 4: I think the way to probably best think about this, 70 00:03:17,400 --> 00:03:19,400 Speaker 4: and this is based on some conversations that I've had 71 00:03:19,440 --> 00:03:21,280 Speaker 4: with people who are very in the know. I think 72 00:03:21,400 --> 00:03:23,440 Speaker 4: if you were to be the US government putting in 73 00:03:23,520 --> 00:03:27,120 Speaker 4: an X billion dollar stake or X percent stake into Intel. 74 00:03:26,919 --> 00:03:28,600 Speaker 1: Is an equity, how you think it could be? 75 00:03:28,720 --> 00:03:30,680 Speaker 4: I mean, there's there's every degree we don't know yet, 76 00:03:30,720 --> 00:03:33,640 Speaker 4: we don't yet know. These are very early stages still, 77 00:03:33,639 --> 00:03:35,720 Speaker 4: and you know, it's important to note that the White 78 00:03:35,720 --> 00:03:38,840 Speaker 4: House nor Intel has really commented on the specifics of this. 79 00:03:38,920 --> 00:03:40,960 Speaker 4: I mean Intel went as far to say that they 80 00:03:40,960 --> 00:03:43,520 Speaker 4: are in early stage talks of the government, but I 81 00:03:43,520 --> 00:03:44,920 Speaker 4: mean there are no details here. 82 00:03:46,440 --> 00:03:50,560 Speaker 3: What did you learn about the conversation between President Trump 83 00:03:51,040 --> 00:03:54,840 Speaker 3: and Intel CEO let Bhutan? Because you saw the social 84 00:03:54,920 --> 00:03:56,960 Speaker 3: afterwards right from the president, then the. 85 00:03:56,920 --> 00:04:00,640 Speaker 1: Social before from the President that was really critical of him. 86 00:04:00,600 --> 00:04:03,600 Speaker 3: Very critical right, and then afterwards it was like good conversation, 87 00:04:03,800 --> 00:04:05,880 Speaker 3: interesting background. What happened there. 88 00:04:06,160 --> 00:04:08,000 Speaker 4: I think that's a really I'd love to have been 89 00:04:08,000 --> 00:04:09,520 Speaker 4: a fly on the wall in that room. From what 90 00:04:09,560 --> 00:04:11,440 Speaker 4: I can tell based on people that I've spoken to. 91 00:04:11,560 --> 00:04:14,320 Speaker 4: I think it was a very constructive conversation between the 92 00:04:14,360 --> 00:04:17,039 Speaker 4: two sides. I think there's a lot of respect from 93 00:04:17,040 --> 00:04:19,520 Speaker 4: the President's part as to what Intel is trying to 94 00:04:19,520 --> 00:04:22,360 Speaker 4: do under lipbou Ten. And let's face it, I think 95 00:04:22,360 --> 00:04:23,960 Speaker 4: if you take a step back and think about who 96 00:04:23,960 --> 00:04:27,960 Speaker 4: Liphuten is, he's a very very successful, very accomplished man 97 00:04:28,200 --> 00:04:31,280 Speaker 4: who really understands how semiconductors work. This is a man 98 00:04:31,320 --> 00:04:34,440 Speaker 4: who sat on the board of Intel and understood some 99 00:04:34,560 --> 00:04:37,320 Speaker 4: of the challenges it was facing around manufacturing long before 100 00:04:37,640 --> 00:04:39,080 Speaker 4: these became apparent in our headlines. 101 00:04:39,160 --> 00:04:41,240 Speaker 1: Think about what we were talking about. I wasn't here, Carol, 102 00:04:41,279 --> 00:04:42,840 Speaker 1: but this story came out a week ago. You were 103 00:04:42,839 --> 00:04:45,440 Speaker 1: talking about it on air. This here's the post from 104 00:04:45,800 --> 00:04:48,800 Speaker 1: President Trump just a week ago. Yeah, the CEO of 105 00:04:48,800 --> 00:04:52,719 Speaker 1: Intel is highly conflicted and must resign immediately. There's no 106 00:04:52,800 --> 00:04:55,280 Speaker 1: other solution to this problem. Thank you for your attention 107 00:04:55,680 --> 00:04:56,280 Speaker 1: to this matter. 108 00:04:56,360 --> 00:04:58,159 Speaker 3: That's why I'm curious, like the turnaround and then we 109 00:04:58,200 --> 00:05:00,560 Speaker 3: saw it after the meeting. So if it take ten 110 00:05:00,640 --> 00:05:04,360 Speaker 3: steps to get this done, where are we in that process? 111 00:05:04,640 --> 00:05:06,839 Speaker 3: If indeed this happens, But where would you say we 112 00:05:06,839 --> 00:05:09,600 Speaker 3: are we on step one? Step two step point five. 113 00:05:10,040 --> 00:05:11,839 Speaker 4: I think just given that, and you know you mentioned 114 00:05:11,839 --> 00:05:14,840 Speaker 4: the truth social posts that the President made, there were 115 00:05:14,839 --> 00:05:17,560 Speaker 4: conversations that were going to happen this week with commerce, 116 00:05:17,640 --> 00:05:20,400 Speaker 4: with Treasury. I mean, Scott Bessett was here yesterday. He's 117 00:05:20,440 --> 00:05:23,159 Speaker 4: involved in these conversations. How lut naked commerce is involved 118 00:05:23,160 --> 00:05:26,160 Speaker 4: in these conversations. This is a government wide discussion. 119 00:05:26,440 --> 00:05:29,360 Speaker 3: So is it three steps in four steps in now? 120 00:05:29,480 --> 00:05:31,400 Speaker 4: I think it's really hard to tell. I think based 121 00:05:31,440 --> 00:05:33,440 Speaker 4: on where we're at, and you know, I think Intel 122 00:05:33,520 --> 00:05:36,760 Speaker 4: says it's early stage. I think it's probably towards the beginning. 123 00:05:36,880 --> 00:05:39,679 Speaker 1: Do you investors, I'm stuck on this line in your story, 124 00:05:39,800 --> 00:05:42,800 Speaker 1: the move turned conventional wisdom on its head among investors, analyst, 125 00:05:42,839 --> 00:05:45,880 Speaker 1: industry executives, and even longtime government officials in terms of 126 00:05:45,920 --> 00:05:48,800 Speaker 1: how private industry has dealt with the government. That's with 127 00:05:49,000 --> 00:05:52,040 Speaker 1: regard to MP materials in investment. Do we need to 128 00:05:52,120 --> 00:05:54,719 Speaker 1: understand and to do investors need to understand that this 129 00:05:54,760 --> 00:05:56,960 Speaker 1: is a new era when it comes to government involvement 130 00:05:57,000 --> 00:05:58,000 Speaker 1: in companies. 131 00:05:57,839 --> 00:06:00,240 Speaker 4: For sure, without a doubt, because this is not just 132 00:06:00,320 --> 00:06:03,320 Speaker 4: MP materials, this is US steel. Yeah, to think about 133 00:06:03,360 --> 00:06:05,520 Speaker 4: what they got pointed in the Golden Shore and US steel. 134 00:06:05,720 --> 00:06:09,000 Speaker 4: This is a new age for investment in private industry. 135 00:06:09,040 --> 00:06:10,839 Speaker 4: I want to say private industry. I've just been outside 136 00:06:10,880 --> 00:06:13,320 Speaker 4: government and I think this is where he is. 137 00:06:13,400 --> 00:06:18,279 Speaker 2: It's a witness this stock Moovers report from Bloomberg Radio. 138 00:06:18,760 --> 00:06:20,920 Speaker 2: Check back with us throughout the day for the latest 139 00:06:21,000 --> 00:06:24,159 Speaker 2: roundup of companies making news on Wall Street and for 140 00:06:24,279 --> 00:06:28,200 Speaker 2: the latest market moving headlines. Listen to Bloomberg Radio Live, 141 00:06:28,600 --> 00:06:32,200 Speaker 2: catch us on YouTube, Bloomberg dot com, and on Applecarplay 142 00:06:32,240 --> 00:06:34,839 Speaker 2: and Android Auto with the Bloomberg Business app.