WEBVTT - Single Best Idea with Tom Keene: Dan Ives & Robert Schiffman

0:00:00.080 --> 0:00:10.480
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:12.600 --> 0:00:16.239
<v Speaker 2>The single best idea and the single idea is what

0:00:16.400 --> 0:00:19.479
<v Speaker 2>keeps us going in the blur here five days a week,

0:00:20.239 --> 0:00:22.960
<v Speaker 2>three hours every morning. People go, how do you do it?

0:00:23.560 --> 0:00:26.880
<v Speaker 2>We do it because our guests want to be on

0:00:27.160 --> 0:00:31.440
<v Speaker 2>with us. That is the absolute bedrock of what we do.

0:00:32.040 --> 0:00:34.839
<v Speaker 2>And one and Eric and the team putting us together

0:00:34.960 --> 0:00:39.080
<v Speaker 2>every day, booked out weeks in advance with people. When

0:00:39.080 --> 0:00:41.280
<v Speaker 2>you get Dan Ives saying I want to be on

0:00:41.360 --> 0:00:44.879
<v Speaker 2>the show, and Robert Schiffman and Bloomberg Intelligence saying I

0:00:44.920 --> 0:00:47.320
<v Speaker 2>want to be on the show, you have just a

0:00:47.479 --> 0:00:52.240
<v Speaker 2>terrific effort in studying this technology space. I can't say

0:00:52.360 --> 0:00:55.320
<v Speaker 2>enough of the interest, both of them said, people coming

0:00:55.400 --> 0:00:58.200
<v Speaker 2>up to them in restaurants saying, what about it? What

0:00:58.280 --> 0:01:02.640
<v Speaker 2>about it? Let's get started. Dan Ives here on technology.

0:01:03.000 --> 0:01:05.200
<v Speaker 3>When you look at XAI, that's so much of the

0:01:05.240 --> 0:01:09.200
<v Speaker 3>AI technology now that's within SpaceX, SpaceX basically being the

0:01:09.280 --> 0:01:12.919
<v Speaker 3>vehicle that obviously gets you to space. It's must view

0:01:13.520 --> 0:01:17.720
<v Speaker 3>where he's basically creating his own ecosystem. You do about

0:01:17.720 --> 0:01:23.039
<v Speaker 3>circuit financing and everything else. He's internally building this what

0:01:23.160 --> 0:01:24.880
<v Speaker 3>I would argue is probably going to be the biggest

0:01:24.880 --> 0:01:26.039
<v Speaker 3>AI company in the world.

0:01:26.280 --> 0:01:30.520
<v Speaker 2>My first conversation on this SpaceX XAI. You know, I'm skeptical.

0:01:30.640 --> 0:01:33.520
<v Speaker 2>Dan Ives is not. He's at Wedbush Security's. We'll be

0:01:33.600 --> 0:01:37.120
<v Speaker 2>doing much much more on this. Lisa Matteo and Alexis

0:01:37.200 --> 0:01:41.080
<v Speaker 2>Krossoffer is making clear this looks to be a ginormous

0:01:41.360 --> 0:01:46.080
<v Speaker 2>that's CFA level for ginormous IPO. How special is this?

0:01:46.200 --> 0:01:48.960
<v Speaker 2>Robert Shiftman with us, we have to hear two Bit's

0:01:49.120 --> 0:01:54.720
<v Speaker 2>Robert Shiftman's with Bloomberg Intelligence. He is absolutely definitive on

0:01:54.880 --> 0:02:01.200
<v Speaker 2>the credit analysis of large cap technology. Robert Schiffman on

0:02:01.280 --> 0:02:03.600
<v Speaker 2>this moment for the big companies.

0:02:03.480 --> 0:02:05.200
<v Speaker 4>What you've said in the past to me is why

0:02:05.200 --> 0:02:08.320
<v Speaker 4>aren't the companies paying more dividence? You asked Dan this morning,

0:02:08.360 --> 0:02:10.640
<v Speaker 4>why you know, why isn't Microsoft going to go out

0:02:11.000 --> 0:02:15.320
<v Speaker 4>and find more? And first of all, I think that

0:02:15.800 --> 0:02:20.000
<v Speaker 4>these companies have much different visions than what we have.

0:02:20.360 --> 0:02:23.240
<v Speaker 4>They can see the future that we can't see, and

0:02:23.280 --> 0:02:26.760
<v Speaker 4>they're willing to put their their money right where that

0:02:26.880 --> 0:02:27.480
<v Speaker 4>vision is.

0:02:28.000 --> 0:02:31.120
<v Speaker 2>Robert Schiffman, he went on really to lay out the

0:02:31.960 --> 0:02:36.760
<v Speaker 2>granular nature. Just one vignette here, Oracle really troubled he

0:02:37.160 --> 0:02:40.280
<v Speaker 2>laid out all the charts about how Oracle's struggling to

0:02:40.320 --> 0:02:43.000
<v Speaker 2>get mass and size. In that they did a bond

0:02:43.040 --> 0:02:48.280
<v Speaker 2>offering and they offered five times more people wanted it

0:02:48.760 --> 0:02:51.760
<v Speaker 2>than the bond size. I mean, the demand was insatiable

0:02:52.160 --> 0:02:56.080
<v Speaker 2>for Oracle. Paper here Robert Schiffman on the future for

0:02:56.160 --> 0:02:58.080
<v Speaker 2>these big companies. Listen.

0:02:58.160 --> 0:03:01.600
<v Speaker 4>I've never been as on big cap tech as I

0:03:01.639 --> 0:03:05.360
<v Speaker 4>am right now, so I understand some of the fears.

0:03:05.440 --> 0:03:08.520
<v Speaker 4>Quite frankly. The way I think about it is it's

0:03:08.560 --> 0:03:11.040
<v Speaker 4>a little bit about perspective, like if you're looking at

0:03:11.440 --> 0:03:15.600
<v Speaker 4>a Rorshach test. Some people equity analysts are very much

0:03:15.639 --> 0:03:18.960
<v Speaker 4>concerned that valuations are wildly out of whack and all

0:03:19.000 --> 0:03:21.200
<v Speaker 4>the money that's being spent is never going to be

0:03:21.200 --> 0:03:24.680
<v Speaker 4>earned back. From a credit perspective, I don't think people

0:03:24.680 --> 0:03:27.760
<v Speaker 4>are worried at all, and there's data to back it up.

0:03:28.320 --> 0:03:31.760
<v Speaker 2>Robert Schiffman there, go to the Bloomberg Terminal Bloomberg Intelligence.

0:03:32.120 --> 0:03:36.920
<v Speaker 2>His read every morning is absolutely definitive and must read.

0:03:37.160 --> 0:03:41.680
<v Speaker 2>On podcasts, We're out there. We're at Spotify and Apple

0:03:41.760 --> 0:03:46.720
<v Speaker 2>Music on YouTube. Subscribe to Bloomberg Podcasts. It's single best

0:03:46.840 --> 0:03:49.800
<v Speaker 2>idea