Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: I'm Tim Stadovak along with Carol Masser. Let's take a
Speaker 1: look at some stocks on the move.
Speaker 3: We're talking about Intel, which rallied this on a story
Speaker 3: on how the Trump administration is set to be in
Speaker 3: talks with Intel to have the US government potentially take
Speaker 3: a stake in the company, and this scene as maybe
Speaker 3: helping support Intel' efforts to expand domestic manufacturing. Now, this
Speaker 3: deal would help shore up Intel's planned factory hub and Ohio.
Speaker 3: This is according to people familiar with the plan, who
Speaker 3: said the idea is for the US government to pay
Speaker 3: for the stake. And we know that Intel has been
Speaker 3: going through working on a turnaround, cutting costs, cutting workers,
Speaker 3: cutting jobs and so. And it also comes at a
Speaker 3: time that we know President Trump was critical of the
Speaker 3: CEO of Intel at Bhutan. They had a meeting and
Speaker 3: the President seemed to be more impressed.
Speaker 1: Yeah, we could go tell he was calling for his
Speaker 1: ouster exactly.
Speaker 3: And then changing really's tone. And then we have this
Speaker 3: story again, nothing is a done deal. But this is
Speaker 3: again some of the reporting.
Speaker 1: The story the Byeline Ryan Gould, josh Win Grove, and
Speaker 1: Leanna Baker. Ryan Gould is in here from our deal's team.
Speaker 1: He's deals reporter for Bloomberg News.
Speaker 4: First to say, wait what I mean? Yeah, seriously, what
Speaker 4: a what a time to be alive? I guess you know,
Speaker 4: it's shocking. I mean, it's really it's really a headline.
Speaker 4: It's quite a statement. I think, let's just recap so
Speaker 4: Intel cha has jumped as much as eight percent on
Speaker 4: this headline that the Trump administration is said to be
Speaker 4: discussing taking a stake in Intel. I mean, let's just
Speaker 4: be clear, this is kind of unprecedented. I mean, we
Speaker 4: kind of saw an example with MP materials that you
Speaker 4: guys just talked about them a short while ago. But
Speaker 4: I mean, if you think about how we sort of
Speaker 4: if you're an investment banker or a deal's lawyer and
Speaker 4: you think about, you know, a company that's been in
Speaker 4: trouble and is looking to rebuild, did you think that
Speaker 4: the US government would be a source of outside capital
Speaker 4: to help you, you know, as part of the tool
Speaker 4: kit to help this company we built. I'm not sure
Speaker 4: many people did, and here we are. We're looking at,
Speaker 4: you know, talks that could help Intel rebuild not only
Speaker 4: its manufacturing presence, but toward a specific area, which is
Speaker 4: the Ohio plant that, even under the former CEO of
Speaker 4: Pac Gelsinger, was kind of seen as a very very
Speaker 4: key part of making Intel grate again.
Speaker 1: I thought they were pulling back on the Ohio plant.
Speaker 1: That's what we learned just in recent weeks, recent months,
Speaker 1: from the company's latest report.
Speaker 4: That's true. And I think if you listened to le
Speaker 4: boutin Intel C we visited the White House just days
Speaker 4: ago on the most recent Intel earning score, he made
Speaker 4: it quite clear that this is about sort of right
Speaker 4: sizing the house looking inward.
Speaker 1: So how would a deal like this work. I mean,
Speaker 1: we've spoke to Jim Litinski at MP Materials about the
Speaker 1: Department of Defenses four hundred million dollar investment, and that's
Speaker 1: certainly I feel like Carol, we're referencing that interview all
Speaker 1: the time now, whether we're talking about we grew the
Speaker 1: Industrial policy or we're talking about exactly rare earths. I mean,
Speaker 1: I think the question that I that I have is
Speaker 1: what would an investment from the United States look like,
Speaker 1: what control would they have? And is money enough to
Speaker 1: turn Intel around?
Speaker 4: I think the way to probably best think about this,
Speaker 4: and this is based on some conversations that I've had
Speaker 4: with people who are very in the know. I think
Speaker 4: if you were to be the US government putting in
Speaker 4: an X billion dollar stake or X percent stake into Intel.
Speaker 1: Is an equity, how you think it could be?
Speaker 4: I mean, there's there's every degree we don't know yet,
Speaker 4: we don't yet know. These are very early stages still,
Speaker 4: and you know, it's important to note that the White
Speaker 4: House nor Intel has really commented on the specifics of this.
Speaker 4: I mean Intel went as far to say that they
Speaker 4: are in early stage talks of the government, but I
Speaker 4: mean there are no details here.
Speaker 3: What did you learn about the conversation between President Trump
Speaker 3: and Intel CEO let Bhutan? Because you saw the social
Speaker 3: afterwards right from the president, then the.
Speaker 1: Social before from the President that was really critical of him.
Speaker 3: Very critical right, and then afterwards it was like good conversation,
Speaker 3: interesting background. What happened there.
Speaker 4: I think that's a really I'd love to have been
Speaker 4: a fly on the wall in that room. From what
Speaker 4: I can tell based on people that I've spoken to.
Speaker 4: I think it was a very constructive conversation between the
Speaker 4: two sides. I think there's a lot of respect from
Speaker 4: the President's part as to what Intel is trying to
Speaker 4: do under lipbou Ten. And let's face it, I think
Speaker 4: if you take a step back and think about who
Speaker 4: Liphuten is, he's a very very successful, very accomplished man
Speaker 4: who really understands how semiconductors work. This is a man
Speaker 4: who sat on the board of Intel and understood some
Speaker 4: of the challenges it was facing around manufacturing long before
Speaker 4: these became apparent in our headlines.
Speaker 1: Think about what we were talking about. I wasn't here, Carol,
Speaker 1: but this story came out a week ago. You were
Speaker 1: talking about it on air. This here's the post from
Speaker 1: President Trump just a week ago. Yeah, the CEO of
Speaker 1: Intel is highly conflicted and must resign immediately. There's no
Speaker 1: other solution to this problem. Thank you for your attention
Speaker 1: to this matter.
Speaker 3: That's why I'm curious, like the turnaround and then we
Speaker 3: saw it after the meeting. So if it take ten
Speaker 3: steps to get this done, where are we in that process?
Speaker 3: If indeed this happens, But where would you say we
Speaker 3: are we on step one? Step two step point five.
Speaker 4: I think just given that, and you know you mentioned
Speaker 4: the truth social posts that the President made, there were
Speaker 4: conversations that were going to happen this week with commerce,
Speaker 4: with Treasury. I mean, Scott Bessett was here yesterday. He's
Speaker 4: involved in these conversations. How lut naked commerce is involved
Speaker 4: in these conversations. This is a government wide discussion.
Speaker 3: So is it three steps in four steps in now?
Speaker 4: I think it's really hard to tell. I think based
Speaker 4: on where we're at, and you know, I think Intel
Speaker 4: says it's early stage. I think it's probably towards the beginning.
Speaker 1: Do you investors, I'm stuck on this line in your story,
Speaker 1: the move turned conventional wisdom on its head among investors, analyst,
Speaker 1: industry executives, and even longtime government officials in terms of
Speaker 1: how private industry has dealt with the government. That's with
Speaker 1: regard to MP materials in investment. Do we need to
Speaker 1: understand and to do investors need to understand that this
Speaker 1: is a new era when it comes to government involvement
Speaker 1: in companies.
Speaker 4: For sure, without a doubt, because this is not just
Speaker 4: MP materials, this is US steel. Yeah, to think about
Speaker 4: what they got pointed in the Golden Shore and US steel.
Speaker 4: This is a new age for investment in private industry.
Speaker 4: I want to say private industry. I've just been outside
Speaker 4: government and I think this is where he is.
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