1 00:00:02,520 --> 00:00:09,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of 2 00:00:09,840 --> 00:00:15,560 Speaker 1: where innovation, money and power collide in Silicon Valley and beyond. 3 00:00:16,000 --> 00:00:39,960 Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:36,040 --> 00:00:39,279 Speaker 2: Live from San Francisco. This is Bloomberg Technology, coming up, 5 00:00:39,400 --> 00:00:42,519 Speaker 2: not off the hook. President Trump says tech tariffs are 6 00:00:42,560 --> 00:00:47,080 Speaker 2: coming for electronics, saying the reprieve was only temporary, plus 7 00:00:47,200 --> 00:00:51,080 Speaker 2: a potential breakup Meta faces the FTC, which says the 8 00:00:51,120 --> 00:00:55,320 Speaker 2: tech giant is a monopoly for owning Instagram and WhatsApp, 9 00:00:55,640 --> 00:00:58,680 Speaker 2: and an all female crew defying gravity. We bring you 10 00:00:58,720 --> 00:01:03,160 Speaker 2: the details of Blue Origins historical space mission. We also 11 00:01:03,280 --> 00:01:06,560 Speaker 2: have some breaking news crossing the Bloomberg terminal, and it 12 00:01:06,600 --> 00:01:08,880 Speaker 2: comes from the New York FED who have published and 13 00:01:08,959 --> 00:01:13,760 Speaker 2: released their March survey of consumer expectations. The main headline 14 00:01:13,959 --> 00:01:17,399 Speaker 2: one year US inflation expectations rising to three point six 15 00:01:17,440 --> 00:01:19,839 Speaker 2: percent from three point one percent in the month of March. 16 00:01:19,840 --> 00:01:23,840 Speaker 2: But there's also a feeling here that unemployment expectations are 17 00:01:23,920 --> 00:01:27,080 Speaker 2: also moving higher, and that we could see unemployment move 18 00:01:27,160 --> 00:01:29,720 Speaker 2: to a level jumping four point six percent according to 19 00:01:29,720 --> 00:01:33,600 Speaker 2: that survey, to early pandemic levels. A lot to pack 20 00:01:33,800 --> 00:01:36,640 Speaker 2: into this show. Let's get out to Bloomberg's Ryan Vastelica, 21 00:01:36,680 --> 00:01:39,880 Speaker 2: who's across the technology sector for US. Okay, a lot 22 00:01:39,880 --> 00:01:43,240 Speaker 2: of information over the weekend. Right now, those big, big 23 00:01:43,240 --> 00:01:46,679 Speaker 2: tariff numbers don't apply to electronics, but tariffs are coming. 24 00:01:46,680 --> 00:01:49,480 Speaker 2: What are you seeing in tech shares this morning? Hey, 25 00:01:49,520 --> 00:01:50,040 Speaker 2: good morning. 26 00:01:50,160 --> 00:01:52,600 Speaker 3: So right now we are seeing a pretty broad based 27 00:01:52,760 --> 00:01:56,800 Speaker 3: rally companies like Apple, EhP, the hardware side of things, 28 00:01:56,880 --> 00:01:59,560 Speaker 3: the chip side of things, either, I'll do them pretty 29 00:01:59,640 --> 00:02:02,080 Speaker 3: well so far today, it seems like people are interpreting 30 00:02:02,120 --> 00:02:04,720 Speaker 3: this as maybe at least a step in the right direction, 31 00:02:04,800 --> 00:02:08,400 Speaker 3: perhaps a softer stance after some of the hardline numbers 32 00:02:08,400 --> 00:02:12,600 Speaker 3: that really send stocks reeling, you know, previous couple of days. 33 00:02:13,680 --> 00:02:15,839 Speaker 2: What's interesting, We're just showing shares of Apple up three 34 00:02:15,840 --> 00:02:18,239 Speaker 2: point seven percent, not as high as they were and 35 00:02:18,280 --> 00:02:20,240 Speaker 2: perhaps the pre market, but one of the names we 36 00:02:20,360 --> 00:02:24,080 Speaker 2: focused on, wool Street, is still treading water. Right Ryan, 37 00:02:24,120 --> 00:02:28,160 Speaker 2: I'm thinking about profit expectations and basically we're kind of stuck. 38 00:02:28,360 --> 00:02:31,760 Speaker 2: No one is adjusting their forecasts for how these companies 39 00:02:31,760 --> 00:02:33,080 Speaker 2: are going to be impacted going forward. 40 00:02:33,120 --> 00:02:36,080 Speaker 3: What do you say, Yeah, absolutely so, this is a 41 00:02:36,120 --> 00:02:39,240 Speaker 3: major major issue. Especially as people start to consider maybe 42 00:02:39,360 --> 00:02:42,360 Speaker 3: whether these stocks look attractive following how much they've come down. 43 00:02:42,440 --> 00:02:45,640 Speaker 3: So far, we haven't seen analysts really cut their estimates 44 00:02:45,639 --> 00:02:49,720 Speaker 3: too dramatically on Apple, Nvidia or the other check names, 45 00:02:49,880 --> 00:02:52,160 Speaker 3: or you know, the tech sector in general. That suggests 46 00:02:52,160 --> 00:02:54,240 Speaker 3: that even though these stocks have come down quite a bit, 47 00:02:54,400 --> 00:02:57,400 Speaker 3: their pes may not be as attractive as they seem 48 00:02:57,440 --> 00:02:59,800 Speaker 3: if it turns out the E and the PE ratio 49 00:03:00,240 --> 00:03:02,799 Speaker 3: is sort of artificially high as it stands right now. 50 00:03:02,840 --> 00:03:04,760 Speaker 2: So this is something we're going to be watching, especially as. 51 00:03:04,639 --> 00:03:07,480 Speaker 3: We get into earning season, any kind of commentary on 52 00:03:07,560 --> 00:03:09,240 Speaker 3: what to expect them by the remainder of the year. 53 00:03:09,720 --> 00:03:12,320 Speaker 3: You know, we haven't yet seen whether companies are going 54 00:03:12,360 --> 00:03:15,320 Speaker 3: to be issuing forecasts at the rate they have in 55 00:03:15,360 --> 00:03:18,160 Speaker 3: the past. Some companies have pulled their forecast is given 56 00:03:18,200 --> 00:03:20,600 Speaker 3: the uncertain environment. So there's still a lot of questions 57 00:03:20,680 --> 00:03:23,120 Speaker 3: out there about what we could expect. That puts the 58 00:03:23,160 --> 00:03:26,079 Speaker 3: idea of what fair value is into question, and that's 59 00:03:26,080 --> 00:03:28,320 Speaker 3: why we're seeing a lot of you know, people waiting 60 00:03:28,320 --> 00:03:30,680 Speaker 3: to see what analysts are doing and what estimates look 61 00:03:30,800 --> 00:03:31,760 Speaker 3: like after a month or so. 62 00:03:32,720 --> 00:03:35,040 Speaker 2: There's a lot of people that want technology companies to 63 00:03:35,080 --> 00:03:38,320 Speaker 2: see steep revisions in their guidance to feel comfortable. There 64 00:03:38,320 --> 00:03:40,240 Speaker 2: are lots of people who say they don't care. Bloomers. 65 00:03:40,280 --> 00:03:42,480 Speaker 2: Brian Vassenica busy couple of weeks for you and I 66 00:03:42,600 --> 00:03:45,400 Speaker 2: coming up. Here's what President Trump had to say about 67 00:03:45,480 --> 00:03:48,080 Speaker 2: tariff's yesterday. He was speaking on Air Force One. 68 00:03:48,680 --> 00:03:50,800 Speaker 4: Well, that's going to be an anspert soon and we'll 69 00:03:51,480 --> 00:03:52,520 Speaker 4: we'll be discussing it. 70 00:03:52,560 --> 00:03:54,160 Speaker 2: But we'll also talk to companies. 71 00:03:54,200 --> 00:03:57,880 Speaker 5: You know, you have to show a certain flexibility, so 72 00:03:58,000 --> 00:04:01,920 Speaker 5: such products might lose flexibility some products for some products. 73 00:04:01,960 --> 00:04:06,440 Speaker 2: Yeah, maybe we're j are now by IDC's Ryan Reef, 74 00:04:06,440 --> 00:04:10,000 Speaker 2: Group vice President for the company's worldwide Device Tracker Suite, 75 00:04:10,040 --> 00:04:13,640 Speaker 2: which of course includes phones, tablets, wearables, so much more so. 76 00:04:13,680 --> 00:04:16,960 Speaker 2: The state of play is actually not clear. Right Friday night, 77 00:04:17,000 --> 00:04:19,520 Speaker 2: we kind of believed it was a reprieve of consumer 78 00:04:19,560 --> 00:04:22,719 Speaker 2: electronics in particular not being subject to the one hundred 79 00:04:22,760 --> 00:04:25,880 Speaker 2: and twenty five percent level tariff. By Sunday you have 80 00:04:25,920 --> 00:04:28,760 Speaker 2: the administration saying it is not a pause or a reprieve. 81 00:04:29,120 --> 00:04:33,240 Speaker 2: It's just that we will have electronic specific tariffs to come. 82 00:04:33,560 --> 00:04:35,479 Speaker 2: When you got to your desk, this morning. Where do 83 00:04:35,520 --> 00:04:36,400 Speaker 2: you think that we stood. 84 00:04:38,480 --> 00:04:40,640 Speaker 5: I think we said that personally in my opinion is 85 00:04:40,640 --> 00:04:43,000 Speaker 5: I think this was part of the master plan. It's 86 00:04:43,000 --> 00:04:45,280 Speaker 5: hard to actually know if that will actually be the 87 00:04:45,560 --> 00:04:47,919 Speaker 5: or was the case, but I think, you know, I 88 00:04:47,920 --> 00:04:51,880 Speaker 5: think generally the at least on the tech aspect of 89 00:04:52,279 --> 00:04:55,040 Speaker 5: these tariffs that we've all seen and announced on April second, 90 00:04:55,640 --> 00:04:58,159 Speaker 5: there was no way that the economy was going to 91 00:04:58,200 --> 00:05:01,360 Speaker 5: sustain around these, really from the US side, but really 92 00:05:01,360 --> 00:05:03,080 Speaker 5: both sides, I think if you really boil it down, 93 00:05:03,120 --> 00:05:06,839 Speaker 5: so I think many were expecting this. That was just 94 00:05:07,000 --> 00:05:10,000 Speaker 5: discussed on previous interviews that you guys have had today. 95 00:05:10,240 --> 00:05:12,240 Speaker 5: But I think now it sort of comes back to 96 00:05:12,320 --> 00:05:14,560 Speaker 5: actually the previous Ryan that from your team that you 97 00:05:14,640 --> 00:05:16,920 Speaker 5: just had on made a good point, right. I think 98 00:05:17,080 --> 00:05:20,839 Speaker 5: we're not seeing supply chains move that much. There's Ben Pullan. 99 00:05:20,960 --> 00:05:22,599 Speaker 5: We expect there's going to be a lot more just 100 00:05:23,120 --> 00:05:24,839 Speaker 5: to get done what you can just in case it's 101 00:05:24,839 --> 00:05:27,320 Speaker 5: a Q two thing. But even from the the the 102 00:05:27,440 --> 00:05:29,720 Speaker 5: imamless side of the street, you know, it seems like 103 00:05:29,760 --> 00:05:32,800 Speaker 5: everyone's kind of holding ground because of the uncertainty across 104 00:05:32,800 --> 00:05:33,120 Speaker 5: the board. 105 00:05:34,360 --> 00:05:37,320 Speaker 2: You published some really interesting data from IDC this morning 106 00:05:37,720 --> 00:05:41,680 Speaker 2: on the smartphone market in the first quarter, and this 107 00:05:41,720 --> 00:05:43,839 Speaker 2: is the market share figures, right, And this is why 108 00:05:43,880 --> 00:05:46,800 Speaker 2: we keep focusing on Apple in particular. You see that 109 00:05:46,920 --> 00:05:51,240 Speaker 2: after you know, Samsung single biggest player after Samsung, but 110 00:05:51,440 --> 00:05:54,080 Speaker 2: generally the market grew one point five percent in the 111 00:05:54,080 --> 00:05:56,360 Speaker 2: first three months of this year. I'm seeing a lot 112 00:05:56,400 --> 00:05:59,520 Speaker 2: of evidence that there was some front running because people 113 00:05:59,560 --> 00:06:01,920 Speaker 2: knew towns were coming. How much did that factor into 114 00:06:01,920 --> 00:06:02,479 Speaker 2: your research? 115 00:06:04,000 --> 00:06:06,839 Speaker 5: There's definitely a play of it into the numbers being 116 00:06:06,960 --> 00:06:09,200 Speaker 5: you know, I guess growth in the first quarter and 117 00:06:09,200 --> 00:06:11,440 Speaker 5: so forth, but I don't know that it was as 118 00:06:11,560 --> 00:06:14,480 Speaker 5: drastic as what we sort of saw some media headlines 119 00:06:14,520 --> 00:06:16,800 Speaker 5: towards the end of March. What we're seeing is a 120 00:06:16,839 --> 00:06:20,279 Speaker 5: lot of that activity works now it's coming to fruition, 121 00:06:20,720 --> 00:06:23,920 Speaker 5: especially with the pause on tech. So there's really two 122 00:06:23,960 --> 00:06:26,080 Speaker 5: ways to think about this. The supply side understands what 123 00:06:26,120 --> 00:06:28,560 Speaker 5: they're up against day to day, hour to hour, right, 124 00:06:28,600 --> 00:06:30,680 Speaker 5: you know, there's either a tariff on or off. If 125 00:06:30,680 --> 00:06:32,600 Speaker 5: it's off, you make a decision of do you want 126 00:06:32,640 --> 00:06:35,320 Speaker 5: to just speed up things to try to produce, build 127 00:06:35,360 --> 00:06:38,800 Speaker 5: and ship. The consumer side is not that sort of 128 00:06:38,839 --> 00:06:42,479 Speaker 5: straightforward because generally, I think what we the industry is 129 00:06:42,480 --> 00:06:44,880 Speaker 5: looking at, we're certainly looking at, is does all of 130 00:06:44,920 --> 00:06:49,000 Speaker 5: this uncertainty that's consistent like basically owning the news, does 131 00:06:49,040 --> 00:06:53,120 Speaker 5: that just overall slow down economic demand? Not tech related, 132 00:06:53,120 --> 00:06:55,800 Speaker 5: but just in general, we believe it does. I think 133 00:06:56,120 --> 00:06:58,520 Speaker 5: that's also a factor that these OEMs Apple and who 134 00:06:58,680 --> 00:07:00,280 Speaker 5: have to build in you don't want to up too 135 00:07:00,320 --> 00:07:02,120 Speaker 5: much in and they haven't sit there that people aren't 136 00:07:02,120 --> 00:07:03,520 Speaker 5: willing to buy because they're concerned. 137 00:07:04,520 --> 00:07:06,880 Speaker 2: Ran you just said the supply side does know what's 138 00:07:06,920 --> 00:07:10,600 Speaker 2: going on? You really think that, well, you know, let's 139 00:07:10,600 --> 00:07:12,720 Speaker 2: take Apple as a case study. Right The reporting from 140 00:07:12,800 --> 00:07:15,400 Speaker 2: Mark German is that the strategy right now in the 141 00:07:15,400 --> 00:07:18,760 Speaker 2: case of the iPhone is prioritize iPhones built in India 142 00:07:19,080 --> 00:07:21,360 Speaker 2: move them to the United States. I think in India 143 00:07:21,360 --> 00:07:24,360 Speaker 2: they do about thirty million handsets a year. That's nothing 144 00:07:24,480 --> 00:07:27,320 Speaker 2: in the scheme of things of the overall production. Given 145 00:07:27,320 --> 00:07:29,400 Speaker 2: that most of those iPhones go to a big market 146 00:07:29,400 --> 00:07:31,760 Speaker 2: in America, do you really think that they have a 147 00:07:31,800 --> 00:07:35,720 Speaker 2: plan to adjust and that they understand what the administration 148 00:07:35,840 --> 00:07:37,640 Speaker 2: is doing with electronics tariffs. 149 00:07:39,320 --> 00:07:41,880 Speaker 5: I don't think that they are guesstimating the plan. I 150 00:07:41,960 --> 00:07:44,960 Speaker 5: think that some companies, this is speculation, Just be very clear, 151 00:07:46,200 --> 00:07:49,120 Speaker 5: would you know, either have some discussions that have been 152 00:07:49,560 --> 00:07:52,920 Speaker 5: ongoing since you know, the election prior to that. That's 153 00:07:52,960 --> 00:07:55,680 Speaker 5: just what you know, big companies do every election year. 154 00:07:56,200 --> 00:07:57,640 Speaker 5: But I would think that they were very focused on 155 00:07:57,720 --> 00:08:00,720 Speaker 5: terrorists because that's what this administration ran on. And I 156 00:08:00,720 --> 00:08:02,960 Speaker 5: don't think that they know every detail, but I would 157 00:08:03,000 --> 00:08:06,720 Speaker 5: assume that some of these big companies were either forewarned 158 00:08:06,840 --> 00:08:09,880 Speaker 5: or you'll have some heads up, but maybe not. And 159 00:08:09,960 --> 00:08:12,800 Speaker 5: I think that that the India piece keeps coming up 160 00:08:13,360 --> 00:08:15,720 Speaker 5: with iPhone and I think is very interesting, no question 161 00:08:15,760 --> 00:08:18,200 Speaker 5: in my mind. Prior to you know, April second and 162 00:08:18,240 --> 00:08:22,360 Speaker 5: even this election, the plan was to ramp up more 163 00:08:23,360 --> 00:08:24,800 Speaker 5: towards the end of a set, like you know, more 164 00:08:24,840 --> 00:08:29,360 Speaker 5: assembly and manufacturing India. That's been pretty well disclosed. But 165 00:08:29,400 --> 00:08:32,120 Speaker 5: whether or not this shifts things that quickly to be 166 00:08:32,120 --> 00:08:34,480 Speaker 5: able to feed the US market, I'm a little bit 167 00:08:34,480 --> 00:08:36,120 Speaker 5: more on the skeptical side of that, But I think 168 00:08:36,120 --> 00:08:39,040 Speaker 5: that these these sort of pause or exemptions, whatever you 169 00:08:39,080 --> 00:08:41,280 Speaker 5: want to call them, on China, that's going to be 170 00:08:41,280 --> 00:08:43,319 Speaker 5: the focus. You're trying to build as much where it's 171 00:08:44,040 --> 00:08:45,839 Speaker 5: most efficient in the product lines you. 172 00:08:45,800 --> 00:08:56,240 Speaker 2: Ned Ryan Reeth for d C with some timely data, 173 00:08:58,200 --> 00:09:01,760 Speaker 2: often more than a decade since perch seeing Instagram and WhatsApp. 174 00:09:01,880 --> 00:09:05,800 Speaker 2: Meta is facing a landmark trial by the FTC alleging 175 00:09:05,800 --> 00:09:09,560 Speaker 2: it made quote killer acquisitions that stifle competition for more 176 00:09:09,559 --> 00:09:12,680 Speaker 2: blombergs Riley Griffin joins us on set. We're underway. What's 177 00:09:12,679 --> 00:09:13,920 Speaker 2: the latest headlines out of DC. 178 00:09:14,440 --> 00:09:17,400 Speaker 6: We have heard that introductory remarks have begun and the 179 00:09:17,480 --> 00:09:20,120 Speaker 6: FTC is laying out a case in which it's alleging 180 00:09:20,120 --> 00:09:24,439 Speaker 6: that Meta engage in a buy or bury strategy, squashing 181 00:09:24,480 --> 00:09:27,840 Speaker 6: the competition and ultimately degrading the quality of the apps 182 00:09:28,160 --> 00:09:29,280 Speaker 6: that Meta now aren't. 183 00:09:29,480 --> 00:09:31,280 Speaker 2: We're going to point out on what you just said 184 00:09:31,760 --> 00:09:34,520 Speaker 2: the headlines emerging. This is a behind closed doors proceedings. 185 00:09:35,600 --> 00:09:38,800 Speaker 2: So the counter argument from Meta is pretty straightforward. Actually, 186 00:09:38,840 --> 00:09:40,839 Speaker 2: let's bring it up a quote from the chief Legal 187 00:09:40,880 --> 00:09:44,240 Speaker 2: Council at Meta that wrote over the weekend. But basically 188 00:09:44,320 --> 00:09:46,600 Speaker 2: they're pointing out that how can you have a monopoly 189 00:09:46,640 --> 00:09:49,920 Speaker 2: in a market where other players have very similar numbers 190 00:09:49,960 --> 00:09:53,560 Speaker 2: to their own, citing TikTok and YouTube in particular, and 191 00:09:53,679 --> 00:09:56,920 Speaker 2: arguing Meta has a less than thirty percent market share 192 00:09:57,280 --> 00:09:58,360 Speaker 2: in those markets. 193 00:09:58,880 --> 00:10:01,640 Speaker 6: It's an amazing argument, in part because the FDC has 194 00:10:01,640 --> 00:10:04,840 Speaker 6: centered this around Snap and Meta is saying anybody with 195 00:10:04,920 --> 00:10:08,520 Speaker 6: a kid at home knows that TikTok is a great 196 00:10:08,559 --> 00:10:12,280 Speaker 6: competitor to Instagram. What I find so interesting about this 197 00:10:12,520 --> 00:10:15,640 Speaker 6: ed is that one of Meta's reputational weaknesses over the 198 00:10:15,720 --> 00:10:18,960 Speaker 6: years has been that it copies its competitors, and here 199 00:10:19,040 --> 00:10:21,720 Speaker 6: in this case, Meta's legal team is actually using that 200 00:10:21,800 --> 00:10:22,920 Speaker 6: to its advantage. 201 00:10:23,600 --> 00:10:25,199 Speaker 2: It's going to go on and on, and we will 202 00:10:25,200 --> 00:10:27,559 Speaker 2: cover it throughout the week. Riley Griffin, thank you very much. 203 00:10:27,600 --> 00:10:30,800 Speaker 2: Let's get more on Meta's historic trial. William Kovacic, George 204 00:10:30,840 --> 00:10:34,880 Speaker 2: Washington University Law School, Global Competition Professor of Law and Policy, 205 00:10:35,320 --> 00:10:39,000 Speaker 2: joins us now And even before the proceedings got underway 206 00:10:39,040 --> 00:10:42,760 Speaker 2: this morning. This morning, William, the chair of the FTC, 207 00:10:42,840 --> 00:10:46,240 Speaker 2: gave the news to an interview to Fox Business and 208 00:10:46,320 --> 00:10:51,360 Speaker 2: basically came out strongly, we see Meta as monopoly. What 209 00:10:51,400 --> 00:10:53,360 Speaker 2: do you make of that? The timing of that comment 210 00:10:53,400 --> 00:10:54,920 Speaker 2: and the timing of the interview. 211 00:10:55,679 --> 00:10:58,599 Speaker 7: I think he's trying to underscore the commitment of the 212 00:10:58,640 --> 00:11:02,280 Speaker 7: Commission to carry this case forward. There have been lots 213 00:11:02,320 --> 00:11:05,840 Speaker 7: of questions raised about whether the interest of the White 214 00:11:05,880 --> 00:11:08,880 Speaker 7: House and the case, the lobbying by Meta of the 215 00:11:08,920 --> 00:11:12,360 Speaker 7: White House might lead to a settlement some action that 216 00:11:12,400 --> 00:11:14,880 Speaker 7: would sell the case out. And I think what the 217 00:11:14,960 --> 00:11:17,920 Speaker 7: Chair is trying to do in a variety of interviews, 218 00:11:17,920 --> 00:11:20,640 Speaker 7: including this morning, is to say, in his words, we're 219 00:11:20,720 --> 00:11:22,760 Speaker 7: keeping our foot to the gas. We're not going to 220 00:11:22,840 --> 00:11:23,320 Speaker 7: back down. 221 00:11:24,320 --> 00:11:26,080 Speaker 2: I should point out for an audience, you're a former 222 00:11:26,160 --> 00:11:30,240 Speaker 2: member of the FTC and you chair the agency between 223 00:11:30,240 --> 00:11:31,960 Speaker 2: March two thousand and eight March two thousand and nine. 224 00:11:32,040 --> 00:11:34,080 Speaker 2: You and I, I feel like over the years have 225 00:11:34,160 --> 00:11:37,800 Speaker 2: discussed the threat of an antitrust action against Meta and 226 00:11:37,840 --> 00:11:41,960 Speaker 2: others many times, and so I ask, how does this one, 227 00:11:42,000 --> 00:11:45,840 Speaker 2: this trial compare and does it have teeth? This does 228 00:11:45,880 --> 00:11:46,440 Speaker 2: have teeth. 229 00:11:46,800 --> 00:11:50,480 Speaker 7: There are formidable obstacles in the path of the FTC, 230 00:11:50,559 --> 00:11:54,400 Speaker 7: prevailing obstacles that Judge Bozburg, who's trying the case, is 231 00:11:54,480 --> 00:11:59,440 Speaker 7: mentioned before. But the requested relief is deadly serious. The 232 00:11:59,480 --> 00:12:03,880 Speaker 7: divested sure of both Instagram and WhatsApp. The FTC has 233 00:12:04,000 --> 00:12:07,319 Speaker 7: marshaled a good body of evidence, it seems that comes 234 00:12:07,600 --> 00:12:09,880 Speaker 7: in many ways right out of the files of Meta 235 00:12:09,960 --> 00:12:13,480 Speaker 7: itself the words of its senior leadership. So it's going 236 00:12:13,520 --> 00:12:16,160 Speaker 7: to try the case in many ways by showing that 237 00:12:16,559 --> 00:12:19,920 Speaker 7: Meta itself believed that it had market power and it 238 00:12:20,000 --> 00:12:23,600 Speaker 7: believed that the acquisitions would suppress competition. Now Meta has 239 00:12:23,640 --> 00:12:26,680 Speaker 7: some good responses to this, as Riley just mentioned, but 240 00:12:27,559 --> 00:12:30,800 Speaker 7: this is a This is a deadly serious exercise. 241 00:12:30,240 --> 00:12:30,880 Speaker 8: For the company. 242 00:12:31,280 --> 00:12:35,000 Speaker 7: And if the judge finds liability and takes the remedial 243 00:12:35,080 --> 00:12:38,280 Speaker 7: path that is available to the FTC and to the judge, 244 00:12:38,640 --> 00:12:40,920 Speaker 7: we could see a major divestiture that would affect the 245 00:12:40,920 --> 00:12:42,000 Speaker 7: company dramatically. 246 00:12:43,080 --> 00:12:46,360 Speaker 2: A major divestiture. I mean, I I what are the 247 00:12:46,440 --> 00:12:48,720 Speaker 2: chances of that the odds? How do you even model 248 00:12:48,760 --> 00:12:50,720 Speaker 2: for that in a trial scenario. 249 00:12:52,280 --> 00:12:55,520 Speaker 7: I suppose that if we were looking at a betting 250 00:12:55,600 --> 00:12:59,760 Speaker 7: shop and we were trying to place odds, Meta would 251 00:12:59,760 --> 00:13:02,480 Speaker 7: have an advantage. And the reason for the advantage is 252 00:13:02,480 --> 00:13:04,800 Speaker 7: that it's going to be able to marshal arguments that 253 00:13:04,880 --> 00:13:07,400 Speaker 7: we don't have market power in this market niche that 254 00:13:07,480 --> 00:13:11,520 Speaker 7: the FDC has defined that the FTC can't toss aside TikTok, 255 00:13:11,640 --> 00:13:16,080 Speaker 7: YouTube and x and other social network providers. Uh, and 256 00:13:16,080 --> 00:13:17,840 Speaker 7: that's gonna that's going to be a hard hurdle to 257 00:13:17,840 --> 00:13:20,520 Speaker 7: get over, So I give I give a I give 258 00:13:20,520 --> 00:13:24,480 Speaker 7: a modest advantage to to to Meta in handling the case, 259 00:13:25,000 --> 00:13:27,280 Speaker 7: But a lot of the FDC's evidence is going to 260 00:13:27,320 --> 00:13:29,360 Speaker 7: come right out of its files. We're going to have 261 00:13:29,480 --> 00:13:33,120 Speaker 7: senior executives on the stand giving us a really an 262 00:13:33,200 --> 00:13:36,600 Speaker 7: unprecedented look at how the company operates, and that's what 263 00:13:36,720 --> 00:13:39,760 Speaker 7: always makes trials risky and dangerous for defendants. 264 00:13:40,640 --> 00:13:44,000 Speaker 2: We're just showing again Jennifer Neustad, Meta's chief legal officer's 265 00:13:44,120 --> 00:13:47,280 Speaker 2: argument over the weekend, which is exactly as you explain. 266 00:13:47,400 --> 00:13:49,680 Speaker 2: Look at the traffic and audience size of TikTok and 267 00:13:49,720 --> 00:13:52,640 Speaker 2: YouTube and their argument metas argument that they have a 268 00:13:52,679 --> 00:13:54,680 Speaker 2: less than thirty percent market share. Could we just go 269 00:13:54,760 --> 00:13:57,080 Speaker 2: back to where we started, which was the FTC chair 270 00:13:57,080 --> 00:14:00,600 Speaker 2: on Fox Business this morning. Ahead of the election of 271 00:14:00,640 --> 00:14:03,040 Speaker 2: President Trump, a lot of people looked at jd Vance 272 00:14:03,160 --> 00:14:07,280 Speaker 2: and his attitude towards big tech. It does seem in 273 00:14:07,320 --> 00:14:11,360 Speaker 2: the early stages that President Trump listens to jd Vance 274 00:14:11,640 --> 00:14:14,440 Speaker 2: about oversight of big tech in the antitrust context. What 275 00:14:14,440 --> 00:14:15,040 Speaker 2: do you make of that? 276 00:14:16,400 --> 00:14:19,520 Speaker 7: I think he is listening and perhaps there's a predisposition 277 00:14:19,640 --> 00:14:23,600 Speaker 7: to listen and listen favorably, because notice the number of 278 00:14:23,640 --> 00:14:27,040 Speaker 7: occasions on which the President has suggested that were it 279 00:14:27,160 --> 00:14:31,720 Speaker 7: not for decisions made by Meta by Google in twenty twenty, 280 00:14:31,960 --> 00:14:34,760 Speaker 7: that he would have gained reelection. So I don't think 281 00:14:34,800 --> 00:14:37,760 Speaker 7: he's disposed in a general way to be fond of 282 00:14:37,800 --> 00:14:40,680 Speaker 7: these companies. And I think he has accepted many of 283 00:14:40,680 --> 00:14:43,240 Speaker 7: the arguments that the Vice president has offered to him, 284 00:14:43,520 --> 00:14:46,520 Speaker 7: So he has there are a lot of reasons for 285 00:14:46,600 --> 00:14:50,000 Speaker 7: which he might be very wary about taking a settlement 286 00:14:50,040 --> 00:14:52,840 Speaker 7: that would be good for Meta here. I suspect he'll listen, 287 00:14:53,240 --> 00:14:56,800 Speaker 7: but he's not ordinarily disposed to think that they are 288 00:14:57,240 --> 00:14:58,520 Speaker 7: a particularly good actor. 289 00:15:00,160 --> 00:15:03,000 Speaker 2: William Cove Church of the George Washington University Law School, 290 00:15:03,000 --> 00:15:05,160 Speaker 2: and of course, former f TC chair himself, thank you. 291 00:15:14,320 --> 00:15:18,880 Speaker 2: Cryptocurrency platform Cracking is expanding beyond digital currencies by now 292 00:15:18,920 --> 00:15:22,560 Speaker 2: offering US equity and ETF trading. Joining US now Cracking 293 00:15:22,600 --> 00:15:25,480 Speaker 2: co CEO Argent Setti along with my mate Bloombau Shnali 294 00:15:25,520 --> 00:15:27,240 Speaker 2: Bassectionali take it away Rgin. 295 00:15:27,280 --> 00:15:29,040 Speaker 8: Thanks for joining us. Of course, this is a big 296 00:15:29,080 --> 00:15:33,320 Speaker 8: move by kracking to get into traditional stocks, and my 297 00:15:33,560 --> 00:15:36,200 Speaker 8: question is how much is this a move to take 298 00:15:36,240 --> 00:15:40,360 Speaker 8: on Robinhood Coinbase in a much larger way in terms 299 00:15:40,440 --> 00:15:43,560 Speaker 8: of providing a one stop shop for clients. 300 00:15:44,960 --> 00:15:47,360 Speaker 9: Yeah. So if you take a step back on the market, 301 00:15:47,680 --> 00:15:50,600 Speaker 9: I think a lot of people think of crypto and 302 00:15:50,640 --> 00:15:54,440 Speaker 9: traditional equities and traditional finance differently than we don't, which 303 00:15:54,480 --> 00:15:59,160 Speaker 9: is our core customer base is professional traders and they 304 00:15:59,240 --> 00:16:01,760 Speaker 9: exist all over the world very similarly in the way 305 00:16:01,760 --> 00:16:06,280 Speaker 9: in which they think, eat and trade, and so Coinbase 306 00:16:06,360 --> 00:16:10,320 Speaker 9: we think, and Robinhood in terms of prosumers and people 307 00:16:10,360 --> 00:16:13,200 Speaker 9: getting onboard and into crypto. And then you have you know, 308 00:16:13,240 --> 00:16:16,160 Speaker 9: other companies similar to Interactive Brokers that focus on professional 309 00:16:16,200 --> 00:16:19,640 Speaker 9: trading and day trading. So for us, our goal has 310 00:16:19,680 --> 00:16:22,840 Speaker 9: always been to be a leader in crypto assets, but 311 00:16:22,920 --> 00:16:24,880 Speaker 9: also be a leader in the way in which our 312 00:16:25,000 --> 00:16:28,720 Speaker 9: professional trading and customers and clients want to trade, may 313 00:16:28,760 --> 00:16:31,600 Speaker 9: that be long term or short term, and so this 314 00:16:31,680 --> 00:16:33,480 Speaker 9: is a this is a part of the path for 315 00:16:33,560 --> 00:16:37,320 Speaker 9: us to continue to do that. In addition, we you know, 316 00:16:37,400 --> 00:16:41,200 Speaker 9: we went to an agreement to acquire a company called 317 00:16:41,320 --> 00:16:47,080 Speaker 9: Ninja Trader that focuses on professional trading for retail derivatives. 318 00:16:47,640 --> 00:16:50,240 Speaker 9: So what you see us doing is just go across 319 00:16:50,240 --> 00:16:53,239 Speaker 9: a wider range of asset classes, including equities and commodities. 320 00:16:53,280 --> 00:16:55,320 Speaker 8: What does it mean for you financially Because of course, 321 00:16:55,360 --> 00:16:57,600 Speaker 8: when you think about krack and, a lot of investors 322 00:16:57,640 --> 00:17:02,560 Speaker 8: are awaiting highly anticipated one day IPO, what can you 323 00:17:02,600 --> 00:17:04,960 Speaker 8: tell us about that path and how this helps. 324 00:17:04,760 --> 00:17:05,359 Speaker 2: You get there? 325 00:17:06,800 --> 00:17:09,840 Speaker 9: So, the most important thing for krack And is its clients, 326 00:17:10,280 --> 00:17:14,080 Speaker 9: and what our clients care about is transparency, security and 327 00:17:14,160 --> 00:17:17,600 Speaker 9: counterparty risk. And so as we continue to expand globally, 328 00:17:17,760 --> 00:17:22,160 Speaker 9: not just here in the United States, but Europe, UK, Canada, 329 00:17:22,280 --> 00:17:25,879 Speaker 9: Australia and now and to Asia, the thing that our 330 00:17:25,920 --> 00:17:30,800 Speaker 9: clients care about most is that counterparty risk and regulatory clarity, 331 00:17:30,840 --> 00:17:33,679 Speaker 9: and so what we're seeing is more regulatory clarity and 332 00:17:33,760 --> 00:17:37,239 Speaker 9: eventually market stability in the crypto ecosystem and so on. 333 00:17:37,320 --> 00:17:39,680 Speaker 9: Behalf of our clients will always want to be transparent 334 00:17:39,720 --> 00:17:43,359 Speaker 9: with our financials, what we're doing, proof of reserves, etc. 335 00:17:44,440 --> 00:17:46,719 Speaker 9: And if we do decide to go public, it'll be 336 00:17:47,080 --> 00:17:48,160 Speaker 9: a journey along the way. 337 00:17:49,480 --> 00:17:52,200 Speaker 2: Timing is everything. Oh, jenn, I found it so interesting 338 00:17:52,240 --> 00:17:53,879 Speaker 2: to see your release because if you think about the 339 00:17:53,880 --> 00:17:57,080 Speaker 2: business model right of Robinhood or a coinbase, they very 340 00:17:57,160 --> 00:18:01,679 Speaker 2: much focus on volatility. Volatility drives volumes and transaction. How 341 00:18:01,760 --> 00:18:04,359 Speaker 2: much is that a factor for you in this initiative. 342 00:18:06,640 --> 00:18:11,920 Speaker 9: So it's look, if you're thinking about their clients, then 343 00:18:12,280 --> 00:18:14,840 Speaker 9: you are thinking about all the milestones along the way. 344 00:18:14,840 --> 00:18:18,159 Speaker 9: That is the most important. So, as I mentioned before, 345 00:18:18,320 --> 00:18:21,400 Speaker 9: being transparent with our financials, being transparent with our reserves 346 00:18:21,440 --> 00:18:23,960 Speaker 9: and their deposits, being transparent about what the products are, 347 00:18:24,280 --> 00:18:28,520 Speaker 9: making sure that our exchange is fair right, there's no rebates, 348 00:18:28,560 --> 00:18:30,520 Speaker 9: there's no discounts to the way in which all of 349 00:18:30,600 --> 00:18:33,720 Speaker 9: our customers and clients interact with our exchange. That's what's 350 00:18:33,760 --> 00:18:37,320 Speaker 9: most important. Volatility in the market is volatility in the market. 351 00:18:37,600 --> 00:18:39,239 Speaker 9: That's always going to be the case. I care more 352 00:18:39,240 --> 00:18:41,400 Speaker 9: about the slope and the long term growth for what 353 00:18:41,520 --> 00:18:44,960 Speaker 9: access to capital markets and debt markets give our customers 354 00:18:45,320 --> 00:18:46,480 Speaker 9: more than anything else. 355 00:18:47,520 --> 00:18:50,679 Speaker 2: Rogen elsewhere in your portfolio, Empire, you were an investor 356 00:18:50,720 --> 00:18:55,320 Speaker 2: in Xai and post Xai and x you know, there's 357 00:18:55,359 --> 00:18:58,520 Speaker 2: clearly a long term view to look at payments and 358 00:18:58,560 --> 00:19:01,720 Speaker 2: look at other financial service offerings that could you see 359 00:19:01,800 --> 00:19:04,200 Speaker 2: working with Linda and the team on something like that. 360 00:19:05,480 --> 00:19:09,080 Speaker 9: Yeah, I think what's really important is where our clients 361 00:19:09,119 --> 00:19:12,240 Speaker 9: and customers are so today you can think of us 362 00:19:12,320 --> 00:19:16,760 Speaker 9: as trading, but you know there's also products for savings 363 00:19:16,840 --> 00:19:19,560 Speaker 9: in yield depending on the type of customer. And then 364 00:19:19,560 --> 00:19:23,159 Speaker 9: eventually you can think about payments, payments and remittances in 365 00:19:23,280 --> 00:19:26,119 Speaker 9: order to facilitate you know, peer to peer commerce or 366 00:19:26,240 --> 00:19:27,800 Speaker 9: business to peer commerce. 367 00:19:28,440 --> 00:19:30,159 Speaker 2: So again, those will be journeys along the. 368 00:19:30,119 --> 00:19:32,760 Speaker 9: Way, which is we've created the platform and the infrastructure 369 00:19:32,800 --> 00:19:35,639 Speaker 9: to be able to provide this, and we're already partnering. 370 00:19:35,240 --> 00:19:36,320 Speaker 2: With folks to do that today. 371 00:19:36,359 --> 00:19:38,560 Speaker 9: So almost you know, ten percent of our transactions today 372 00:19:38,560 --> 00:19:41,199 Speaker 9: are and through our experiences. It's through people connecting through 373 00:19:41,240 --> 00:19:42,120 Speaker 9: our API argent. 374 00:19:42,240 --> 00:19:46,239 Speaker 8: One question I have as a former private investor in 375 00:19:46,320 --> 00:19:49,719 Speaker 8: so many ways, you're very familiar with the xaxai story, 376 00:19:50,000 --> 00:19:54,240 Speaker 8: but what about the potential for tokenization to make assets 377 00:19:54,359 --> 00:19:58,119 Speaker 8: like this more public? How quickly can you get there? 378 00:20:00,359 --> 00:20:04,119 Speaker 9: Technologically we can get there tomorrow, It's more about regulatory clarity, 379 00:20:04,320 --> 00:20:07,240 Speaker 9: What is the legal and client relationship. How do you 380 00:20:07,280 --> 00:20:10,000 Speaker 9: think about which assets real world assets that we talk 381 00:20:10,040 --> 00:20:13,840 Speaker 9: about bringing on into crypto and making it programmable. So 382 00:20:14,280 --> 00:20:17,320 Speaker 9: what I'd say is that what we're doing now, given 383 00:20:17,320 --> 00:20:19,600 Speaker 9: that the future of training is pretty much borderless. It's 384 00:20:19,600 --> 00:20:21,880 Speaker 9: around the clock, it's twenty four to seven in crypto 385 00:20:21,960 --> 00:20:24,960 Speaker 9: rails has allowed that is that this lays the ground 386 00:20:25,000 --> 00:20:27,520 Speaker 9: with groundwork not just for myself but the other exchanges 387 00:20:27,560 --> 00:20:31,320 Speaker 9: worldwide to be able to provide equities and digitize them 388 00:20:31,359 --> 00:20:34,080 Speaker 9: to become more programmable. So tokenization of equities is a 389 00:20:34,160 --> 00:20:37,200 Speaker 9: term you hear a lot about. I think when you 390 00:20:37,240 --> 00:20:41,360 Speaker 9: think about global liquidity pools and global access to capital 391 00:20:41,440 --> 00:20:44,520 Speaker 9: and then demand for these assets no matter where they 392 00:20:44,560 --> 00:20:46,840 Speaker 9: might be in the US or Europe, I actually think 393 00:20:46,880 --> 00:20:49,800 Speaker 9: this lays a great groundwork for companies to start thinking 394 00:20:49,840 --> 00:20:52,480 Speaker 9: about how they should list who they should work with 395 00:20:52,520 --> 00:20:55,479 Speaker 9: and where those global equidity pools come from. 396 00:20:56,000 --> 00:20:58,800 Speaker 2: Cracking co CEO Argent SETI greats have you back on 397 00:20:58,840 --> 00:21:01,080 Speaker 2: the program and bloom Begstell's thank you for bringing it 398 00:21:01,119 --> 00:21:03,760 Speaker 2: up to us. Now coming up on the show, Electronics 399 00:21:04,080 --> 00:21:08,440 Speaker 2: expecting a temporary reprieve from tariffs, but President Trump says 400 00:21:08,560 --> 00:21:10,760 Speaker 2: there are more tariffs on the way. We'll have more 401 00:21:10,800 --> 00:21:22,159 Speaker 2: of that. Next. Welcome back to Bloomberg Technology. Ed Ludlow 402 00:21:22,160 --> 00:21:25,800 Speaker 2: Here in San Francisco Financial Markets, the story is technology 403 00:21:25,800 --> 00:21:29,320 Speaker 2: focus indexes really hitting session lows. Look at the NASDAK 404 00:21:29,359 --> 00:21:33,240 Speaker 2: one hundred or for example, the Philadelphia Semiconductor Index, a 405 00:21:33,359 --> 00:21:37,280 Speaker 2: temporary pause or reprieve from those high level tariffs on China, 406 00:21:37,920 --> 00:21:40,080 Speaker 2: making people think things might not be so bad for 407 00:21:40,119 --> 00:21:43,520 Speaker 2: the electronics sectors. However, there is a pledge, particularly in 408 00:21:43,520 --> 00:21:46,399 Speaker 2: the semis case, that a bucket of tariffs specific to 409 00:21:46,440 --> 00:21:49,040 Speaker 2: semiconductors is coming. We also look at Apple as a 410 00:21:49,080 --> 00:21:51,879 Speaker 2: case study. Right Apple has been so interesting to track 411 00:21:51,920 --> 00:21:54,800 Speaker 2: over the last six days based on how it's training 412 00:21:54,800 --> 00:21:56,720 Speaker 2: on these headlines. So it's the biggest points drivers to 413 00:21:56,760 --> 00:21:59,600 Speaker 2: the upside on the NASDAK one hundred right now. But 414 00:21:59,680 --> 00:22:02,800 Speaker 2: if they're is a specific bucket coming for electronics, there's 415 00:22:02,840 --> 00:22:05,480 Speaker 2: still the questions about what it will do. The administration 416 00:22:05,560 --> 00:22:09,840 Speaker 2: wants on shoring of manufacturing. Apple seems focused on shifting 417 00:22:10,080 --> 00:22:12,560 Speaker 2: more to India. Let's get back to our top story. 418 00:22:12,600 --> 00:22:15,720 Speaker 2: Companies like Apple and Nvidia appearing to score a major 419 00:22:15,760 --> 00:22:18,119 Speaker 2: win only for the White House, so then rain on 420 00:22:18,160 --> 00:22:21,760 Speaker 2: their parade. President Trump posting on true Socials saying quote, 421 00:22:21,880 --> 00:22:25,400 Speaker 2: there was no tariff exception which was announced on Friday. 422 00:22:25,440 --> 00:22:28,800 Speaker 2: These products are subject to the existing twenty percent fentanyl 423 00:22:28,840 --> 00:22:33,120 Speaker 2: tariffs and they are just moving to a different tariff bucket. 424 00:22:33,680 --> 00:22:36,920 Speaker 2: Bluemis KD Lions joins US from Washington, d C. I mean, 425 00:22:37,119 --> 00:22:40,119 Speaker 2: for me, the main learning of all of the last 426 00:22:40,640 --> 00:22:44,080 Speaker 2: few days is that actually the White House is starting 427 00:22:44,080 --> 00:22:47,800 Speaker 2: to think about how it defines semiconductors and defines electronics, 428 00:22:47,960 --> 00:22:49,840 Speaker 2: and something very specific is coming. 429 00:22:51,320 --> 00:22:52,960 Speaker 10: Yeah, that's what the White House is saying. Well, the 430 00:22:52,960 --> 00:22:55,520 Speaker 10: President pushback on the idea that there's exemptions as being 431 00:22:55,560 --> 00:22:56,040 Speaker 10: fake news. 432 00:22:56,200 --> 00:22:56,240 Speaker 5: Ed. 433 00:22:56,280 --> 00:22:58,520 Speaker 10: I would note that the White House statement literally said 434 00:22:58,560 --> 00:23:01,760 Speaker 10: clarification of exemption which comply to hundreds of billion dollars 435 00:23:01,800 --> 00:23:05,080 Speaker 10: in consumer electronics that the US imports. But what the 436 00:23:05,119 --> 00:23:08,040 Speaker 10: President and others, including the Commerce Secretary Howard Lutnik, are 437 00:23:08,080 --> 00:23:09,960 Speaker 10: arguing is that this does not mean this is a 438 00:23:10,000 --> 00:23:13,520 Speaker 10: free pass forever. This really is just about procedure. Yes, 439 00:23:13,600 --> 00:23:15,560 Speaker 10: these goods for now will not be subject to the 440 00:23:15,600 --> 00:23:18,200 Speaker 10: ten percent global baseline tariff or one hundred and twenty 441 00:23:18,240 --> 00:23:21,520 Speaker 10: five percent reciprocal tariff rate on all Chinese imports, but 442 00:23:21,560 --> 00:23:24,119 Speaker 10: they are still subject to that twenty percent fentanyl tariff 443 00:23:24,200 --> 00:23:26,880 Speaker 10: rate on everything that comes out of China, and they 444 00:23:26,920 --> 00:23:30,320 Speaker 10: will be subject to semiconductor teriffs that President Trump has 445 00:23:30,359 --> 00:23:32,879 Speaker 10: long been promising that just will be done. He refers 446 00:23:32,880 --> 00:23:35,200 Speaker 10: to in a different bucket under different authority, it would 447 00:23:35,200 --> 00:23:38,879 Speaker 10: be sectioned two thirty two. Realistically, that they're looking at 448 00:23:38,920 --> 00:23:42,240 Speaker 10: which factors in national security parts of the equation, and 449 00:23:42,280 --> 00:23:44,720 Speaker 10: the President on True Social over the weekend suggested it's 450 00:23:44,760 --> 00:23:47,960 Speaker 10: not just semi conductors, but the whole electronic supply chain 451 00:23:48,520 --> 00:23:51,160 Speaker 10: that they are looking at through this investigation. And while 452 00:23:51,160 --> 00:23:52,960 Speaker 10: he has been talking about this for some time, he 453 00:23:53,000 --> 00:23:55,720 Speaker 10: did indicate that this is coming sooner rather than later, 454 00:23:55,760 --> 00:23:58,560 Speaker 10: suggesting to reporters on Air Force one that he could 455 00:23:58,560 --> 00:24:01,520 Speaker 10: have a rate of the semicond doctor tariff announced within 456 00:24:01,680 --> 00:24:04,040 Speaker 10: the week and that the tariffs themselves will be applied 457 00:24:04,320 --> 00:24:06,520 Speaker 10: in the not so distant future. One thing I would 458 00:24:06,600 --> 00:24:10,080 Speaker 10: note here that does potentially provide a window of opportunity 459 00:24:10,160 --> 00:24:13,480 Speaker 10: or ability to maneuver for companies, if you will, like Apple, 460 00:24:13,560 --> 00:24:16,120 Speaker 10: is when the President was asked by a reporter yesterday 461 00:24:16,160 --> 00:24:19,000 Speaker 10: if there would be exemptions for things like iPhones, he 462 00:24:19,080 --> 00:24:21,600 Speaker 10: suggested that he can't be rigid with this, that there 463 00:24:21,600 --> 00:24:24,480 Speaker 10: has to be some degree of flexibility. It's just not 464 00:24:24,680 --> 00:24:28,520 Speaker 10: entirely clear how he's defining flexibility or where that so 465 00:24:28,640 --> 00:24:31,919 Speaker 10: called flexibility, might apply it inverse. 466 00:24:32,000 --> 00:24:34,400 Speaker 2: Katie Lines in Washington, d C. Thank you very much. 467 00:24:34,600 --> 00:24:37,640 Speaker 2: Let's broaden the conversation to include financial markets with city 468 00:24:37,640 --> 00:24:41,800 Speaker 2: Index senior around this. Fiona Cincota, Okay, you got into 469 00:24:41,840 --> 00:24:44,919 Speaker 2: your office this morning, you're at your desk, You looked 470 00:24:44,920 --> 00:24:47,120 Speaker 2: at the commentary from the president, and then you looked 471 00:24:47,119 --> 00:24:50,320 Speaker 2: at the documents from Friday night for exemptions. Where do 472 00:24:50,400 --> 00:24:55,840 Speaker 2: you think tariff policy stands for technology? Good morning? 473 00:24:56,160 --> 00:24:58,719 Speaker 11: I would say about as clear as mud, to be honest. 474 00:24:58,840 --> 00:25:03,080 Speaker 11: You know, this just really highlighting the fact that there 475 00:25:03,119 --> 00:25:06,960 Speaker 11: doesn't seem to be really much clarity at all over 476 00:25:07,400 --> 00:25:11,040 Speaker 11: what the Trump administration is doing. Where we're at what 477 00:25:11,160 --> 00:25:14,560 Speaker 11: might come tomorrow, And this is just making it extremely 478 00:25:14,640 --> 00:25:18,240 Speaker 11: difficult for our clients to trade. It's making extremely difficult 479 00:25:18,359 --> 00:25:21,720 Speaker 11: for businesses to really have any level of planning still 480 00:25:22,160 --> 00:25:25,560 Speaker 11: over you know, where they should be moving manufacturing to, 481 00:25:26,320 --> 00:25:30,520 Speaker 11: from what rate, at what speed? When's this happening? I mean, 482 00:25:30,600 --> 00:25:33,920 Speaker 11: it just feels like the further we moved through these 483 00:25:33,960 --> 00:25:38,400 Speaker 11: tariff announcements, the more uncertainty there actually is over what's happening, 484 00:25:38,480 --> 00:25:40,879 Speaker 11: whether they'll be walked back, whether they'll be paused and 485 00:25:40,920 --> 00:25:44,080 Speaker 11: I think that's being reflected in the markets really quite 486 00:25:45,000 --> 00:25:49,520 Speaker 11: quite dramatically. Obviously, we saw those big swings across last week, 487 00:25:49,840 --> 00:25:52,280 Speaker 11: but even today, you know, we started off with the 488 00:25:52,320 --> 00:25:56,120 Speaker 11: futures considerably higher for the US tech stocks than what 489 00:25:56,200 --> 00:26:00,560 Speaker 11: they've opened at. Obviously we have seen some bound are 490 00:26:00,600 --> 00:26:03,680 Speaker 11: strong rebound in Apple, but I think, you know, given 491 00:26:03,720 --> 00:26:05,880 Speaker 11: the fact that that company has lost around a fig 492 00:26:05,960 --> 00:26:08,800 Speaker 11: of its value over the past few weeks, and the 493 00:26:08,840 --> 00:26:12,160 Speaker 11: rebound is still relatively smaller, and that again just highlights 494 00:26:12,160 --> 00:26:13,080 Speaker 11: that uncertainty. 495 00:26:14,520 --> 00:26:17,880 Speaker 2: You know. This morning, in Video posted a blog explaining 496 00:26:18,400 --> 00:26:21,760 Speaker 2: that they're going to for the first time build their 497 00:26:21,800 --> 00:26:26,840 Speaker 2: AI supercomputer basically a server rack unit one in America. 498 00:26:27,600 --> 00:26:30,240 Speaker 2: And that's a plan that's happening largely in Texas over 499 00:26:30,280 --> 00:26:33,199 Speaker 2: the next four years. When you see a headline like that, 500 00:26:33,800 --> 00:26:36,439 Speaker 2: how much do you think it is a direct response 501 00:26:36,800 --> 00:26:41,280 Speaker 2: to the policy actions of this administration so far? Oh? 502 00:26:41,400 --> 00:26:45,280 Speaker 11: Completely, I mean, I think this is absolutely a direct response. 503 00:26:45,320 --> 00:26:48,120 Speaker 11: I mean, this is what Trump's sort of aiming for. 504 00:26:48,880 --> 00:26:51,520 Speaker 11: And it's really interesting as well, because I mean it 505 00:26:51,840 --> 00:26:54,840 Speaker 11: is moving that manufacturing back to the US, which is 506 00:26:54,880 --> 00:26:59,120 Speaker 11: what Trump has you know, pledged for across his campaign. 507 00:26:59,359 --> 00:27:04,040 Speaker 11: And since taking and moving into the White House. What 508 00:27:04,160 --> 00:27:06,400 Speaker 11: I think is interesting here is what this will mean 509 00:27:06,520 --> 00:27:09,880 Speaker 11: for cost Obviously, I think it's you know, much more. 510 00:27:10,080 --> 00:27:13,840 Speaker 11: There are greater costs manufacturing in the US and perhaps 511 00:27:13,920 --> 00:27:17,440 Speaker 11: other parts of the world, or there were indeed before 512 00:27:17,600 --> 00:27:20,879 Speaker 11: these tariffs were being applied. So I mean, this is 513 00:27:20,920 --> 00:27:24,359 Speaker 11: what companies are doing in order to be able to 514 00:27:24,440 --> 00:27:27,320 Speaker 11: keep those costs down as much as possible, but it 515 00:27:27,440 --> 00:27:31,440 Speaker 11: will still result in an increasing costs. And I think, 516 00:27:31,480 --> 00:27:36,400 Speaker 11: you know, when this stuff come to consumer electronics particularly, 517 00:27:36,840 --> 00:27:39,920 Speaker 11: that's obviously when we're going to see that hitting the inflation, 518 00:27:40,080 --> 00:27:42,240 Speaker 11: We're going to see costs going up. But even with 519 00:27:42,320 --> 00:27:45,440 Speaker 11: these supercomputers, it's going to be affecting the costs involved. 520 00:27:46,359 --> 00:27:48,600 Speaker 2: So as of right this moment, and if you're a 521 00:27:48,640 --> 00:27:51,080 Speaker 2: technology investor, how do you play it? Do you stay 522 00:27:51,119 --> 00:27:54,400 Speaker 2: away from a name like Apple or others where there 523 00:27:54,480 --> 00:27:57,080 Speaker 2: is more of a direct read through for the pass 524 00:27:57,119 --> 00:27:59,440 Speaker 2: on of those costs at the consumer level? 525 00:28:01,359 --> 00:28:03,880 Speaker 11: Yeah, you know, I think you know, tech obviously has 526 00:28:04,080 --> 00:28:09,240 Speaker 11: been very much under pressure since the Trump administration starts 527 00:28:09,320 --> 00:28:13,399 Speaker 11: denouncing these tariffs, and that's obviously because of the fact 528 00:28:13,400 --> 00:28:14,280 Speaker 11: that it's a growth stock. 529 00:28:14,320 --> 00:28:14,960 Speaker 2: I think there is. 530 00:28:15,000 --> 00:28:21,120 Speaker 11: Much more potential looking towards value rather than growth right now. 531 00:28:21,160 --> 00:28:23,480 Speaker 11: So I think the tech sector is still quite a 532 00:28:23,520 --> 00:28:27,560 Speaker 11: difficult sector to be focusing in on given the level 533 00:28:27,600 --> 00:28:31,280 Speaker 11: of uncertainty. I think that still exists. Obviously there's uncertainty 534 00:28:31,320 --> 00:28:34,200 Speaker 11: across the board, but I think still more defensive areas 535 00:28:34,359 --> 00:28:38,800 Speaker 11: are going to be benefiting, such as healthcare industrials. Those 536 00:28:38,840 --> 00:28:41,720 Speaker 11: are areas that I would potentially be looking at rather 537 00:28:41,800 --> 00:28:45,240 Speaker 11: than the tech sector, which I think still could potentially 538 00:28:45,280 --> 00:28:48,920 Speaker 11: come under fire quite significantly from the Trump administration. 539 00:28:50,200 --> 00:28:52,560 Speaker 2: City indexing, your analysts be honest and god, thank you 540 00:28:52,680 --> 00:28:55,040 Speaker 2: very much for your time on the show. Now, coming 541 00:28:55,120 --> 00:28:58,280 Speaker 2: up on Bluebog Technology, the first all female flight to 542 00:28:58,360 --> 00:29:02,080 Speaker 2: space has taken off board a Blue Origin rocket and 543 00:29:02,160 --> 00:29:04,200 Speaker 2: come safely back down to Earth. We'll have the details 544 00:29:04,200 --> 00:29:07,280 Speaker 2: of the launch and how it positions Jeff Bezos's rocket company. 545 00:29:07,600 --> 00:29:10,920 Speaker 2: That's coming up next. Also, take a look at some markets. Okay, 546 00:29:10,960 --> 00:29:14,320 Speaker 2: we know where it's session lows, particularly on tech specific 547 00:29:14,360 --> 00:29:18,520 Speaker 2: indices like NASDAQ one hundred. Interesting is the NASDAK Golden 548 00:29:18,560 --> 00:29:22,600 Speaker 2: Dragon China Index. That's a list essentially of the US 549 00:29:22,720 --> 00:29:26,160 Speaker 2: listed ADRs of Chinese technology companies and there is some 550 00:29:26,760 --> 00:29:29,400 Speaker 2: respite for those names as well that have swung with 551 00:29:29,480 --> 00:29:31,760 Speaker 2: a similar volatility to the rest of the tech sector. 552 00:29:32,000 --> 00:29:34,320 Speaker 2: We'll dig into why throughout the week. Stay with us, 553 00:29:34,360 --> 00:29:48,560 Speaker 2: We'll be right back. This has Blienberg Technology Q one. 554 00:29:58,240 --> 00:30:02,680 Speaker 12: Less Lou Shepherd has cleared the tower. 555 00:30:08,880 --> 00:30:11,960 Speaker 2: That was Blue Origins new Shepherd rocket taking off earlier 556 00:30:12,000 --> 00:30:15,000 Speaker 2: today with a star studded crew of six women, including 557 00:30:15,080 --> 00:30:20,360 Speaker 2: Lauren Sanchez, Jeff Bezos's Fionce, Gail King, and Katie Perry Bloomberg. 558 00:30:20,440 --> 00:30:23,600 Speaker 2: Sanna Pashankar is here to tell us more. And you know, 559 00:30:23,920 --> 00:30:27,640 Speaker 2: it was a notable sort of celebrity themed flight. What 560 00:30:27,960 --> 00:30:30,480 Speaker 2: happened and what's the big picture with this one? Sanna? 561 00:30:31,920 --> 00:30:35,320 Speaker 13: Yeah, so it was an all female crew and that 562 00:30:35,480 --> 00:30:38,080 Speaker 13: was the first one since nineteen sixty three when a 563 00:30:38,160 --> 00:30:41,400 Speaker 13: female Soviet cosmonaut went to space herself. So it's really 564 00:30:41,480 --> 00:30:44,480 Speaker 13: the first all female crew with more than one member. 565 00:30:45,600 --> 00:30:47,719 Speaker 2: And yeah, so they went up to space. 566 00:30:48,400 --> 00:30:51,760 Speaker 13: I think they felt a lot of camaraderie among you know, 567 00:30:52,120 --> 00:30:55,800 Speaker 13: being all women and I think being all you know, 568 00:30:56,040 --> 00:30:59,280 Speaker 13: becoming astronauts for the first time. And so I think 569 00:30:59,400 --> 00:31:03,320 Speaker 13: it was you know, a really successful flight. Everything when 570 00:31:03,400 --> 00:31:07,520 Speaker 13: as planned, Everything went smoothly, and many of them mentioned 571 00:31:07,560 --> 00:31:10,160 Speaker 13: that it had really changed them coming back. 572 00:31:10,520 --> 00:31:13,680 Speaker 2: Interesting. Alright, Bloomberg, Saner Pashankar, Great to have you here 573 00:31:13,680 --> 00:31:16,240 Speaker 2: on Bloomberg Technology. Let's get more on why this flight 574 00:31:16,400 --> 00:31:20,520 Speaker 2: matters for the space industry. As an A Zuokoro, Senior 575 00:31:20,600 --> 00:31:23,680 Speaker 2: Fellow at the Harvard Belfa Center and former Assistant Director 576 00:31:24,000 --> 00:31:26,640 Speaker 2: for Space Policy at the White House, back with us 577 00:31:26,680 --> 00:31:29,560 Speaker 2: here on the show, I mean, there are a number 578 00:31:29,600 --> 00:31:32,320 Speaker 2: of ways that we can take this conversation right. The 579 00:31:32,360 --> 00:31:34,560 Speaker 2: way that I think about it is the data that 580 00:31:34,760 --> 00:31:36,840 Speaker 2: prior to today's mission. I think I'm right in saying 581 00:31:37,160 --> 00:31:38,960 Speaker 2: of all the people that have gone to space, only 582 00:31:39,080 --> 00:31:43,480 Speaker 2: fifteen one five percent were female. So what is the 583 00:31:43,600 --> 00:31:45,400 Speaker 2: significance from that standpoint? 584 00:31:45,480 --> 00:31:45,640 Speaker 6: To you? 585 00:31:45,760 --> 00:31:46,080 Speaker 2: As an a. 586 00:31:48,200 --> 00:31:52,920 Speaker 4: This is greatly about American value creation and more innovation 587 00:31:53,720 --> 00:31:56,400 Speaker 4: from the space sector through the launch business. I think 588 00:31:56,440 --> 00:32:00,400 Speaker 4: that what we're seeing here is you're seeing glorigin menting 589 00:32:00,520 --> 00:32:06,480 Speaker 4: itself as a safe and dependent, dependable option to go 590 00:32:06,640 --> 00:32:09,160 Speaker 4: to space as a as a as an option for 591 00:32:09,280 --> 00:32:13,239 Speaker 4: space tourism. The fact that in eleven minutes you can 592 00:32:13,400 --> 00:32:17,920 Speaker 4: zoom past the Carmen line sixty two miles above sea 593 00:32:18,000 --> 00:32:23,200 Speaker 4: level in a fully reusable suborbital rocket that's built for 594 00:32:23,360 --> 00:32:26,680 Speaker 4: humans and come back safely. Is I think a big 595 00:32:26,720 --> 00:32:29,840 Speaker 4: American feet that we need to that we need to 596 00:32:29,920 --> 00:32:33,440 Speaker 4: highlight at the big question is what this means for 597 00:32:33,560 --> 00:32:39,200 Speaker 4: investors in space. Does this mean investors will move further 598 00:32:39,280 --> 00:32:43,080 Speaker 4: into the launch business and support additional flights. Does it 599 00:32:43,280 --> 00:32:45,800 Speaker 4: mean that we will see another one of bees in 600 00:32:46,000 --> 00:32:50,520 Speaker 4: another decade of being you know, making history again or 601 00:32:50,680 --> 00:32:53,640 Speaker 4: will this continue to become a commonplace. 602 00:32:54,520 --> 00:32:57,240 Speaker 2: I get asked a lot about the gap between Blue 603 00:32:57,280 --> 00:33:00,320 Speaker 2: Origin and space X, but the other perspective active of 604 00:33:00,360 --> 00:33:02,640 Speaker 2: the investors I speak to is that it's good to 605 00:33:02,760 --> 00:33:06,800 Speaker 2: have two private sector names that are able to have 606 00:33:06,880 --> 00:33:09,800 Speaker 2: a launch system that's reusable and that are launching with 607 00:33:09,920 --> 00:33:14,560 Speaker 2: greater cadence. How important, though, is it that Blue Origin 608 00:33:14,680 --> 00:33:17,720 Speaker 2: starts to make progress in its other domains outside a 609 00:33:17,800 --> 00:33:20,360 Speaker 2: New Shepherd. I'm talking about New Glen and also its 610 00:33:20,400 --> 00:33:21,160 Speaker 2: engine business. 611 00:33:22,720 --> 00:33:25,680 Speaker 4: And you know there are also in the space station 612 00:33:25,880 --> 00:33:29,320 Speaker 4: business as well. There's right busy companies. So I think 613 00:33:29,400 --> 00:33:32,920 Speaker 4: that it's important that they are able to show successes 614 00:33:33,000 --> 00:33:36,959 Speaker 4: because in the space business as safe successes or all 615 00:33:37,000 --> 00:33:39,680 Speaker 4: that matters it's important to show these results in all 616 00:33:39,720 --> 00:33:42,920 Speaker 4: your businesses, and right now they are doing that, and 617 00:33:43,000 --> 00:33:47,880 Speaker 4: that builds well for the investment community that's watching what 618 00:33:48,080 --> 00:33:50,040 Speaker 4: this does to grow the space asset class. 619 00:33:51,080 --> 00:33:53,680 Speaker 2: Those that are skeptical look at this and say, this 620 00:33:53,880 --> 00:33:56,640 Speaker 2: is a shop window for Jeff Bezos and Blue in 621 00:33:56,720 --> 00:34:00,280 Speaker 2: the sense that it's an all celebrity, well mostly celebrity crew, 622 00:34:00,960 --> 00:34:04,040 Speaker 2: and that to everyday people, this just isn't achievable. That 623 00:34:04,200 --> 00:34:06,120 Speaker 2: you know, it's one hundred and fifty thousand dollars for 624 00:34:06,200 --> 00:34:08,799 Speaker 2: the deposit. We don't know how much a ticket costs, 625 00:34:08,800 --> 00:34:11,719 Speaker 2: because it depends on your relationship with Bezos. What's the 626 00:34:11,840 --> 00:34:16,000 Speaker 2: counter argument, what's the argument on how this progresses and 627 00:34:16,120 --> 00:34:23,040 Speaker 2: advances people's everyday opportunity to go to space. Yeah, the counter. 628 00:34:22,920 --> 00:34:25,279 Speaker 4: Argument is threefold. Actually. The first is it helps the 629 00:34:25,400 --> 00:34:31,040 Speaker 4: engineers with continuous repetition, which means that again they are 630 00:34:31,120 --> 00:34:34,600 Speaker 4: doing this safely, and they are they become more used 631 00:34:34,640 --> 00:34:38,120 Speaker 4: to doing it, so the engines and the systems perform 632 00:34:39,000 --> 00:34:42,840 Speaker 4: better or it becomes more commonplace technically. The second is 633 00:34:42,960 --> 00:34:47,000 Speaker 4: that when you think about the advent of air travel, 634 00:34:47,560 --> 00:34:50,400 Speaker 4: you know it wasn't affordable to everyone and so with 635 00:34:50,600 --> 00:34:57,200 Speaker 4: these repetitions, we hope that the intention is it helps 636 00:34:57,239 --> 00:34:59,359 Speaker 4: to bring down the costs so that you have more 637 00:34:59,480 --> 00:35:03,759 Speaker 4: people able to live space. And then thirdly, I think 638 00:35:03,800 --> 00:35:05,560 Speaker 4: that what this does, and you alluded to this a 639 00:35:05,600 --> 00:35:09,360 Speaker 4: bit with the two options, is it inspires others to 640 00:35:09,440 --> 00:35:13,840 Speaker 4: start more rocket companies in America. It inspires others to 641 00:35:15,440 --> 00:35:18,160 Speaker 4: see this as something that is, you know, something we 642 00:35:18,280 --> 00:35:20,520 Speaker 4: do every day and not once in a decade. 643 00:35:22,320 --> 00:35:26,680 Speaker 2: As an a lean on your experience in office, how 644 00:35:26,719 --> 00:35:29,960 Speaker 2: do you think the White House and the pending NASSA 645 00:35:30,040 --> 00:35:33,120 Speaker 2: administrator would view blues mission this morning? 646 00:35:34,800 --> 00:35:38,360 Speaker 4: I believe that pending ASCID administrator also was on a 647 00:35:38,440 --> 00:35:45,360 Speaker 4: similar flights. So one can't help but be excited that 648 00:35:45,920 --> 00:35:50,080 Speaker 4: this is continuing, that there are more people given access 649 00:35:50,120 --> 00:35:54,120 Speaker 4: to space. And I think that from the White House lens, 650 00:35:54,760 --> 00:35:59,200 Speaker 4: when you see an American company continue to foster the 651 00:35:59,280 --> 00:36:04,280 Speaker 4: innovation that we want to see are coming from American ingenuity, 652 00:36:04,719 --> 00:36:08,279 Speaker 4: but that's a plus. And then thirdly, I think from 653 00:36:08,360 --> 00:36:12,319 Speaker 4: the lens of NASA and even at the White House too, 654 00:36:13,000 --> 00:36:17,600 Speaker 4: you want to see American prominent American leadership, and that's 655 00:36:17,680 --> 00:36:18,560 Speaker 4: what you're seeing here. 656 00:36:20,600 --> 00:36:23,800 Speaker 2: Jeff Bezos has a very similar big picture view of 657 00:36:23,840 --> 00:36:27,680 Speaker 2: the future of space, like Elon Musk wants humankind to 658 00:36:27,719 --> 00:36:31,160 Speaker 2: be multiplanetary species. I think Jeff Bezos talks about living 659 00:36:31,239 --> 00:36:34,200 Speaker 2: and working in space. And you reference the future business 660 00:36:34,280 --> 00:36:37,840 Speaker 2: model that Blue has of the future of international space stations, 661 00:36:38,600 --> 00:36:41,880 Speaker 2: not the International Space Station, but with your experience, do 662 00:36:41,920 --> 00:36:44,400 Speaker 2: you have line of sight to that future from a 663 00:36:44,520 --> 00:36:46,800 Speaker 2: test a launched like such we had today. 664 00:36:48,719 --> 00:36:53,360 Speaker 4: Absolutely. The International Space Station is set to retire in 665 00:36:53,440 --> 00:36:58,080 Speaker 4: about six years, so by twenty thirty we expect that 666 00:36:58,320 --> 00:37:02,560 Speaker 4: to start being retired. And there are a number of 667 00:37:02,680 --> 00:37:07,720 Speaker 4: launch companies, a number of space companies, including a Origin, 668 00:37:07,880 --> 00:37:12,160 Speaker 4: that are working to replace this station. And we're not 669 00:37:12,239 --> 00:37:14,680 Speaker 4: going to see one station because the International Space Station 670 00:37:14,800 --> 00:37:17,200 Speaker 4: is quite large and it's built over a decade, so 671 00:37:17,239 --> 00:37:19,759 Speaker 4: you're going to see multiple options. You might have one 672 00:37:19,800 --> 00:37:23,880 Speaker 4: for pharmaceuticals. You might have a space station for scientific research, 673 00:37:23,960 --> 00:37:26,520 Speaker 4: and another for space tourism, a space hotel, if you will. 674 00:37:26,920 --> 00:37:31,920 Speaker 4: So what you see is the Again, this repetition of 675 00:37:32,200 --> 00:37:36,080 Speaker 4: flying gives a lot of It adds a lot of 676 00:37:36,160 --> 00:37:39,759 Speaker 4: experience and expertise to the teams that are building what 677 00:37:40,000 --> 00:37:42,280 Speaker 4: could be a future space station hotel. 678 00:37:43,080 --> 00:37:45,000 Speaker 2: As an a. It was a acor from the Harvard 679 00:37:45,000 --> 00:37:56,359 Speaker 2: Belfa Center. It's great to have you back on the program. Okay. 680 00:37:56,400 --> 00:37:59,040 Speaker 2: A new story from this morning. Intel will sell a 681 00:37:59,160 --> 00:38:03,239 Speaker 2: fifty one in its programmable chips unit al Terra, to 682 00:38:03,360 --> 00:38:06,320 Speaker 2: silver Lake Management for eight point seventy five billion dollars. 683 00:38:06,600 --> 00:38:09,560 Speaker 2: Is it spins off its non central businesses. The deals 684 00:38:09,600 --> 00:38:12,560 Speaker 2: expected to close in the second half of twenty twenty five. 685 00:38:12,920 --> 00:38:16,719 Speaker 2: Intel bort Alterra ten years ago for seventeen billion dollars. 686 00:38:16,760 --> 00:38:20,239 Speaker 2: It's all part of new Intel CEO Lip Bhutan's strategy 687 00:38:20,680 --> 00:38:24,359 Speaker 2: to divest from non core assets. Okay. Another chip name 688 00:38:24,400 --> 00:38:28,800 Speaker 2: in Video is working to mass produce AI supercomputers that 689 00:38:28,920 --> 00:38:32,319 Speaker 2: are built entirely in the US by late twenty twenty six. 690 00:38:32,400 --> 00:38:36,160 Speaker 2: It's ramping up development of two manufacturing plants in Texas 691 00:38:36,560 --> 00:38:40,000 Speaker 2: and says it will produce a half a trillion dollars 692 00:38:40,080 --> 00:38:43,480 Speaker 2: worth of AI infrastructure in the United States over the 693 00:38:43,560 --> 00:38:46,920 Speaker 2: next four years. Bluemost brody Ford joins me with some 694 00:38:47,000 --> 00:38:49,239 Speaker 2: more details. I think it's really important to be honest 695 00:38:49,280 --> 00:38:52,279 Speaker 2: with the audience about this story because it's it's been 696 00:38:52,320 --> 00:38:55,359 Speaker 2: a multi week thing with in VideA. What do they 697 00:38:55,480 --> 00:38:59,440 Speaker 2: mean by produce half a trillion dollars worth of AI infrastructure, Brody, 698 00:38:59,800 --> 00:39:03,880 Speaker 2: And what we're talking about, I think is assembling this 699 00:39:04,160 --> 00:39:08,360 Speaker 2: system that they called accelerated computing, not just the fabrication 700 00:39:08,480 --> 00:39:11,120 Speaker 2: of key chips. That's a very important point. 701 00:39:11,160 --> 00:39:13,919 Speaker 12: Yeah, I mean, electronics, more than any other good really 702 00:39:14,480 --> 00:39:16,920 Speaker 12: come a bit from everywhere. Right, you buy a component 703 00:39:17,120 --> 00:39:20,040 Speaker 12: from Vietnam, from China and in videos case, I'm not certain, 704 00:39:20,120 --> 00:39:22,560 Speaker 12: but it's coming from all over the world, and likely 705 00:39:22,680 --> 00:39:24,759 Speaker 12: what we're speaking about here is some of that kind 706 00:39:24,760 --> 00:39:29,320 Speaker 12: of later stage manufacturing assembly. In Vidia isn't one hundred 707 00:39:29,320 --> 00:39:31,440 Speaker 12: percent clear in this, but what we know is that 708 00:39:31,960 --> 00:39:34,279 Speaker 12: in recent weeks, in recent months, there's been a lot 709 00:39:34,320 --> 00:39:37,520 Speaker 12: of pressure for large companies, large tech companies to speak 710 00:39:37,520 --> 00:39:42,080 Speaker 12: about how we are investing in the US. If tariffs come, 711 00:39:42,320 --> 00:39:45,560 Speaker 12: supply chain disruptions come, we are ready. And so that's 712 00:39:45,640 --> 00:39:47,880 Speaker 12: kind of what in Vidia's messaging today that they are 713 00:39:48,040 --> 00:39:50,239 Speaker 12: ramping up their production in the US. They will have 714 00:39:50,360 --> 00:39:54,520 Speaker 12: capacity here and they will make up to five hundred 715 00:39:54,600 --> 00:39:58,439 Speaker 12: billion worth of goods here in the US just very quick. 716 00:39:58,520 --> 00:40:01,480 Speaker 2: In Texas. Who the manufacturing partners, Yeah. 717 00:40:01,360 --> 00:40:05,000 Speaker 12: They're pairing up with Fox khn Han how they're in Texas, 718 00:40:05,120 --> 00:40:07,440 Speaker 12: and so I mean essentially they are. You know, it's 719 00:40:07,520 --> 00:40:09,799 Speaker 12: kind of a who's who of the companies that are 720 00:40:10,320 --> 00:40:14,080 Speaker 12: doing manufacturing for Arizona. It's going to be TSMC and 721 00:40:14,120 --> 00:40:17,880 Speaker 12: their big Phoenix campus. Phoenix Campus we've heard a lot about. 722 00:40:18,880 --> 00:40:21,399 Speaker 2: Right, Bloomberg's Brady Ford out of New York City really 723 00:40:21,480 --> 00:40:25,279 Speaker 2: appreciate it. That does it for this edition of Bloomberg Technology. 724 00:40:25,360 --> 00:40:27,480 Speaker 2: And what a start of the week it's been, particularly 725 00:40:27,560 --> 00:40:29,879 Speaker 2: in the markets reaction. A lot of you are listening 726 00:40:29,920 --> 00:40:31,759 Speaker 2: to us as a podcast, so you know exactly where 727 00:40:31,800 --> 00:40:33,960 Speaker 2: you can find it on the Bloomberg terminal as well 728 00:40:34,000 --> 00:40:38,200 Speaker 2: as online on Apple, Spotify, and on iHeart. A lot 729 00:40:38,280 --> 00:40:40,600 Speaker 2: more to come throughout the week, particularly when it comes 730 00:40:40,640 --> 00:40:44,440 Speaker 2: to technology stocks. From San Francisco. This is Bloomberg Technology