Speaker 1: From Mahard where Innovation, Money and Power colle in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: Live from New York and San Francisco. This is Bloomberg
Speaker 3: Technology coming up in video games to become the most
Speaker 3: valuable tech company. Amid plans to add it to the
Speaker 3: Dow Jones index, Intel will be removed from the one
Speaker 3: hundred and twenty year old XD benchmark.
Speaker 4: A day out from the US election, cyber officials fight
Speaker 4: to curb vote distrust and the risks of AI.
Speaker 3: Chap Watson minors. We speak to the lawyer suing character AI,
Speaker 3: claiming it's responsible for the death of a fourteen year old.
Speaker 3: But first we check in on markets on Edge ahead
Speaker 3: of the all important US election. Ed I shannelight on
Speaker 3: crypto coin because the Nasdaq is not doing very much,
Speaker 3: bitcoined off by sevent tens percent, many feeling this is
Speaker 3: a proxy, of course, for the Trump trade. We're at
Speaker 3: sixty eight thousand, six hundred and seventeen.
Speaker 5: What are you watching?
Speaker 4: Yeah, there's a few news items out there. One you
Speaker 4: already mentioned right in video being added to the Dow
Speaker 4: Jones at Intel's expense, and that is driving the name
Speaker 4: higher one point seven percent in the session, and as
Speaker 4: you point out, at this moment in time, it is
Speaker 4: leapfrogged above Apple in terms of market cap or value.
Speaker 4: I think we'll talk a bit more about that in
Speaker 4: the show with a very nice chart also looking at
Speaker 4: Tesla down four tenths of a percent. It had been
Speaker 4: down more significantly than that data from China shipments slipping
Speaker 4: in the month of October. But I wonder how much
Speaker 4: this name Coro will be at the center of the election.
Speaker 4: And again throughout the hour, we should probably talk about that.
Speaker 5: We're going to talk about the election.
Speaker 3: It is centerfold here presidential candidate's Donald Trump Kamala Harris
Speaker 3: making their final appeals to voters before election day tomorrow,
Speaker 3: both campaigns targeting critical swing states.
Speaker 5: As a flurry of.
Speaker 3: Poll project very tight race from all bluegs KDE line.
Speaker 3: Some piece to say is right here in New York
Speaker 3: for US and the latest poll that you've gone an
Speaker 3: ie on, well.
Speaker 5: There's a number of them.
Speaker 6: One of the polls that is really the marque pole
Speaker 6: for the swing states, the New York Times Siena poll
Speaker 6: came out over the weekend and shows no surprise that
Speaker 6: this thing is a dead heat. While there's marginal leads
Speaker 6: for Harris in a trio of states Nevada, North Carolina, Wisconsin,
Speaker 6: Trump leading in Arizona, them effectively tied in the remaining three,
Speaker 6: all of that is within the margin of error, So
Speaker 6: this race is just too close to Callwood Perhaps is
Speaker 6: most telling though about that poll is that among the
Speaker 6: eight percent of voters in these battleground states that said
Speaker 6: they only recently decided who they were voting for, those
Speaker 6: broke to Harris by eleven points, fifty five to forty
Speaker 6: four percent. So as we consider the very small basket
Speaker 6: of undecided voters ahead of election day tomorrow, it does
Speaker 6: suggest that some of those late breakers are more in
Speaker 6: her favor. The other thing I would just note, as
Speaker 6: we consider how late this is breaking, more than seventy
Speaker 6: eight million people have already voted in this election. That
Speaker 6: is more than half of all of the electorate who
Speaker 6: voted in twenty twenty. And when you look at some
Speaker 6: of these battleground states, North Carolina and Georgia have each
Speaker 6: had more than four million people vote already, that's eighty
Speaker 6: percent of what the total electorate was in twenty twenty,
Speaker 6: so it does suggest that turnout is quite high.
Speaker 4: That's important data throughout the course of this election. True
Speaker 4: to the show's name, we focused on technology policy. Yeah,
Speaker 4: but we should probably note that both candidates are out
Speaker 4: on the road and over the weekend you continue to
Speaker 4: make their message to the voting base. What did the
Speaker 4: weekend look like and where are Harris and Trump as
Speaker 4: we speak?
Speaker 6: Well, Trump is in North Carolina to start his day.
Speaker 6: Harris will be spending basically all of her day crisscrossing
Speaker 6: the swing state of Pennsylvania, where Trump will also be
Speaker 6: spending time before the day is out, before ending his
Speaker 6: day in Michigan. No surprise to see them centering their
Speaker 6: concentration in the battlegrounds. I would point out that over
Speaker 6: the weekend we did see a number of attention grabbing
Speaker 6: headlines generating from Donald Trump and his campaign suggestions that
Speaker 6: he doesn't think he should have ever left the White
Speaker 6: House what was seen as a threat to the presses.
Speaker 6: He suggested a shooter could shoot through what he called
Speaker 6: the fake news, while Kamala Harris yesterday, when speaking in Michigan,
Speaker 6: didn't mention Trump by name at all, which is a
Speaker 6: bit of a change to her final closing argument. We
Speaker 6: have seen as she takes that as he does to
Speaker 6: the battleground states. I would point out we also got
Speaker 6: an additional poll that is not in a state that
Speaker 6: was thought to be a battleground this cycle because Donald
Speaker 6: Trump easily won it in twenty twenty and twenty sixteen,
Speaker 6: that is Iowa. But the new des Moin Register poll
Speaker 6: that came out over the weekend actually showed Harris up
Speaker 6: three points in Iowa, forty seven to forty four percent
Speaker 6: for Trump. And what was most telling, because this is
Speaker 6: seen as an outlier, is what the demographics in that
Speaker 6: poll actually looked like. Harris leading with women by a
Speaker 6: margin of twenty points, and more specifically, senior women support
Speaker 6: her by a margin of two to one, sixty three
Speaker 6: percent to just twenty eight percent who support Donald Trump.
Speaker 6: So that voters sixty five and older favoring Harris is
Speaker 6: really important to note as that is one of the
Speaker 6: highest propensity groups of voters more likely to actually show
Speaker 6: up and vote on election day, and as we know,
Speaker 6: this election is going to be all about turnout, So
Speaker 6: statistics like.
Speaker 4: That or keep Kaylee Elon Musk is playing a role
Speaker 4: in this election. In the last two hours in Pennsylvania,
Speaker 4: there's been a hearing about his one million dollar sweep
Speaker 4: stakes for registered voters. What's the latest there and any
Speaker 4: impact that it's having.
Speaker 6: Well as we consider the sweep takes itself, which of course,
Speaker 6: is is in legal jeopardy or has at least brought
Speaker 6: this lawsuit because the Philadelphia District Attorney is contending that
Speaker 6: it violates election law because you can't actually pay anyone
Speaker 6: to vote or register to vote. So this idea that
Speaker 6: it's limited to registered voters is what has caused this
Speaker 6: legal issue. I would point out the hearing today is
Speaker 6: back in state court. Despite America pack which is the
Speaker 6: group that is running this back by Elon Musk's effort
Speaker 6: to move it to federal court that was denied by
Speaker 6: a judge. So it is now back in the hands
Speaker 6: of the state. It's unclear if this will all be
Speaker 6: resolved in time considering election day as tomorrow that is
Speaker 6: the day the sweepstakes was set to end. But obviously
Speaker 6: it puts a spotlight on the money and influence Elon
Speaker 6: Musk has had for Donald Trump in this campaign. He's donated,
Speaker 6: of course, tens of millions of dollars to the group,
Speaker 6: which is also organizing part of Donald Trump's ground game.
Speaker 5: Keep in mind Trump's campaign.
Speaker 6: Has outsourced a lot of that get out the vote
Speaker 6: effort in this cycle. Elon Musk's group has paid a
Speaker 6: massive role in that, and it'll be interesting to see
Speaker 6: how when the final results are in, we decide whether
Speaker 6: or not that was a strategy that worked for him.
Speaker 4: At Trump ling those Kadie lines at the start of
Speaker 4: a critically important week, Thank you very much. Let's get
Speaker 4: the market's perspective and bringing Nancy Tengler of Lafetengla Investments
Speaker 4: and Nancy, I do want to start with Tesla as
Speaker 4: a case study if Donald Trump were to claim a
Speaker 4: second term in the White House. The idea is that
Speaker 4: Elon Musk takes on some sort of role in the
Speaker 4: Department of Government Efficiency. You're a Tesla investor, right, how
Speaker 4: do you prepare for either scenario with the name like
Speaker 4: Tesla in the center of it.
Speaker 1: Well, you know, the rhetoric is hard to parse through
Speaker 1: because we hear, you know, tariffs, we hear cost cutting
Speaker 1: up two trillion just that side of the aisle, and
Speaker 1: yet we have no idea what's really going to happen.
Speaker 1: So I think what Elon has been able to do
Speaker 1: pretty effectively is run multiple companies and do it pretty well.
Speaker 1: So as a Tesla investor, I'm not alarmed at this point.
Speaker 1: I think you sit back. You know, we've talked in
Speaker 1: the past about the Mega pac business. That was the
Speaker 1: fastest growing business and it is the most profitable. That's
Speaker 1: the utility grade battery storage.
Speaker 7: So while EVS may come under some.
Speaker 1: Pressure, I think you're going to see other parts of
Speaker 1: his business benefit. And also, I think everyone ultimately acts
Speaker 1: in their own best interest, and that includes Donald Trump
Speaker 1: and Elon Musk, So if this election goes in that direction,
Speaker 1: I think they'll figure it out.
Speaker 3: Nancy, what everyone is going to wonder about is the
Speaker 3: relationship with US and China going forward post this election.
Speaker 3: And we get that sort of case study with Tesla
Speaker 3: today with a Shanghai output in their manufacturing in China
Speaker 3: and just not living up to the expectations and many
Speaker 3: warring that they're going to hit that full year record
Speaker 3: amount of deliveries for twenty twenty four. What did you
Speaker 3: make of the data coming out of Tessa's manufacturing in China.
Speaker 1: Yeah, I mean, I think that was a bit of
Speaker 1: a disappointment. The stock doesn't seem to be under a
Speaker 1: lot of pressure, but I think we've also seen over
Speaker 1: time these fits and starts historically with not hitting numbers,
Speaker 1: not hitting deliveries, even in the US. So I haven't
Speaker 1: had a chance to really dig into it, Caroline. We will,
Speaker 1: But the stock is trading as though everything is going
Speaker 1: to go perfectly. I mean, I think it's trading at
Speaker 1: a peg of price earnings to growth ratio of about
Speaker 1: forty times, and so we do need earnings, and we
Speaker 1: do need earnings growth, and we did get margins expanding.
Speaker 1: I didn't think the report was that great, but I
Speaker 1: think it was a relief rally in the stock, and
Speaker 1: so we'll see what happens, Nancy.
Speaker 4: I promise there is much more we need to discuss.
Speaker 4: But our colleagues at Bloomberg Intelligence put out some basic
Speaker 4: research this morning that if Trump is to win, it's
Speaker 4: likely will impact the scope of the IRAV tax credits.
Speaker 5: Do you model for that?
Speaker 7: We will if it happens, I think. I think one
Speaker 7: of the things you have.
Speaker 1: To remember, though, is it's very difficult to a lot
Speaker 1: of these analyzes are done in a static environment and
Speaker 1: it's very difficult once the new administration, whoever they are,
Speaker 1: comes in to go back and make adjustments to bills
Speaker 1: that have already been passed. And we saw that when
Speaker 1: the Republicans swept in twenty sixteen, they promised to fix
Speaker 1: or do away with Obamacare and they did nothing. So
Speaker 1: I don't necessarily think that that's a big threat.
Speaker 7: To the stock price, but we are aware of it,
Speaker 7: and we are looking at.
Speaker 3: It talking about things that are in flux and not static.
Speaker 3: Market capitalizations of US today, it looks like if Nvidia
Speaker 3: holds at these levels, it will be more than Apple
Speaker 3: in terms of worth three point three four three six
Speaker 3: trillion dollars. As Apple slips on the day, what do
Speaker 3: you make of and video being.
Speaker 5: Added to the Dow?
Speaker 3: What do you make of it when crucially also who
Speaker 3: comes out of it, and of what was happening Intel?
Speaker 1: Well, sadly, Caroline, I remember when Intel was added to
Speaker 1: the Dow in nineteen ninety nine, and talk about bad timing, which,
Speaker 1: by the way, this committee that makes the selections often
Speaker 1: does not necessarily time these things very well.
Speaker 7: Intel is down cumulatively.
Speaker 1: Since nineteen ninety end of nineteen ninety nine, three and
Speaker 1: a half percent. So this is a company that has
Speaker 1: has not pivoted to new technologies, has squandered innovation, and
Speaker 1: so we've been out of the stock for quite some time.
Speaker 7: Think of Xerox who developed.
Speaker 1: The mouse but didn't commercialize it. Who commercialized it, Apple
Speaker 1: and Microsoft. So I think Nvidia has stepped in the
Speaker 1: wings or has stepped onto the stage, and Intel is
Speaker 1: fading to the wings. That doesn't mean the company will
Speaker 1: go out of business, but I mean we've seen recently
Speaker 1: it's in fact a takeover target. So I think you
Speaker 1: want to be long in video here. The earnings growth
Speaker 1: is remarkable, and again on a price earnings to growth basis,
Speaker 1: which is really how you have to look at this stock.
Speaker 1: It's trading at one point one times versus as I mentioned,
Speaker 1: Tesla over forty and Microsoft.
Speaker 7: At two point two times. So I think it was
Speaker 7: a good ad. I don't know about the timing.
Speaker 1: We'll see, but I do think we're early in the
Speaker 1: runway and of generative AI and computing.
Speaker 7: I'll just say one last thing.
Speaker 1: I loved the story Larry Elson told about him and
Speaker 1: Elon Musk going to dinner with Jensen and just saying,
Speaker 1: please take our money, please take more of it.
Speaker 7: We please give us more GPUs.
Speaker 1: So I think the backlog in Blackwell's pretty significant and
Speaker 1: ambidious poise to do very well in the coming years.
Speaker 3: We always love you bringing the story and indeed the
Speaker 3: way to invest around it. And that's Leffetango Investments.
Speaker 8: Thank you.
Speaker 3: Coming up warnings on voting confidence. Why the Director of
Speaker 3: the Cybersecurity and Infrastructure Security Agency says we may have
Speaker 3: to wait before final election results. This is what my technology.
Speaker 4: As the US election looms, the director of the Cybersecurity
Speaker 4: and Infrastructure Security Agency warns of potential threats to voting confidence,
Speaker 4: urging the public to ready themselves for a potential waiting
Speaker 4: game before results could be finalized. Let's go out to
Speaker 4: Bloomberg's Jamie Tarra Bay and we'll get to the role
Speaker 4: Jenniesli and all of this. But let's help our audience
Speaker 4: understand what is the problem here or the instruction that
Speaker 4: officials are asking the electorate to brace.
Speaker 5: For right now?
Speaker 9: I think the question and that what they really are
Speaker 9: trying to tell everyone is trust the process, the election
Speaker 9: system and all of the networks are secure and resilient,
Speaker 9: and the idea of you're a vote being hacked or
Speaker 9: being rigged or taken away from you is a fallacy,
Speaker 9: and they have spent the better part of the last
Speaker 9: year preparing to refute those claims and push back against
Speaker 9: any question of the integrity of the election system.
Speaker 3: What's interesting is about who leads SISSA and how it's
Speaker 3: become sort of a personalized agency as well.
Speaker 5: In many ways, that's right.
Speaker 9: Jenny Silly has come on board as the head of SISSA,
Speaker 9: the Cybersecurity Infrastructural Security Agency, in twenty twenty one, and
Speaker 9: she has really sort of centralized the focus of the
Speaker 9: agency on her herself. She's a West Point graduate. She's
Speaker 9: done tours in Iraq and Afghanistan. One thing that I
Speaker 9: didn't really know about about her is that she can
Speaker 9: actually solve a Rubik's cube behind her back, which I
Speaker 9: thought was very interesting. But she has literally tried to
Speaker 9: make this I know, right, she's trying to make this
Speaker 9: a very personal effort because, as she's said, people trust people,
Speaker 9: and she's been very forward facing. She's been out, she
Speaker 9: goes to conferences, she's been speaking before Congress. Her whole
Speaker 9: sort of posture is transparency and candor, and she's doing
Speaker 9: everything she can to really build relationships not just with
Speaker 9: the private sector, but also with public sector and with
Speaker 9: the public at large.
Speaker 4: Jamie, let's talk a little bit more about the threats themselves.
Speaker 4: You've come on the show, the team have come on
Speaker 4: the show and talked about literally voting technology in the
Speaker 4: cybersecurity contexts, threats online. Where is their most risk in
Speaker 4: this week of the election.
Speaker 9: I think one of the real big challenges that not
Speaker 9: just folks like Jennie Stily have been facing, but state
Speaker 9: election officials, local election officials have been dealing with, is
Speaker 9: really where people are getting their information from, how they
Speaker 9: are verifying their relation that information, and the question of
Speaker 9: whether people will see something through social media and actually
Speaker 9: believe it, and really it's got to be a.
Speaker 5: Question of trust.
Speaker 9: But verify and look at where look at what your
Speaker 9: state election officials are saying, look at what they're doing,
Speaker 9: and it's going to come from everywhere, and it's already
Speaker 9: we're already seeing it. It's online, it's on x it's
Speaker 9: on TikTok, it's on YouTube, it's on all of your
Speaker 9: social media platforms, which, by the way, has taken a
Speaker 9: bit of a backward step in terms of mediating and
Speaker 9: being more involved in sort of political transparency. So just
Speaker 9: being able to trust those institutions themselves is harder these days.
Speaker 9: But it really becomes a question that if you see
Speaker 9: something online that doesn't look right, ask look, try to
Speaker 9: find out go to your state election official website and
Speaker 9: see what they're saying, particularly when it comes to the
Speaker 9: voting process, and also the idea that the election is
Speaker 9: not going to be decided on the day, we may
Speaker 9: not have a result on the day.
Speaker 5: Hang tight and just.
Speaker 9: Don't let that overwhelm you have faith in the institutions
Speaker 9: to that.
Speaker 3: Point, many don't have faith in institutions, and that is
Speaker 3: interestingly why Easterly has made it so much about herself
Speaker 3: correct sort of the face to an agency that she
Speaker 3: doesn't have much bang, well, doesn't have much bark, but
Speaker 3: it's certainly trying to have more bang.
Speaker 9: Definitely, she's definitely done more in terms of being much
Speaker 9: more outward speaking, trying to push you know, you're right,
Speaker 9: it's voluntary guidelines for a large part of industry. We've
Speaker 9: seen so many hacks and so many compromises of critical
Speaker 9: infrastructure and it really is a question of what private
Speaker 9: sector can do, what organizations can do, and she's been
Speaker 9: really at the forefront of trying to get everyone on board,
Speaker 9: and she's had some success there. But it really is
Speaker 9: a question of how much how much everyone will meet
Speaker 9: in the middle. But also, you know, I mean, she's
Speaker 9: just it's she's got a long way ahead of her.
Speaker 9: Everyone is not going to sort of you know, it's
Speaker 9: really going to be a question of sitting time and
Speaker 9: looking to see and trusting the results and waiting to
Speaker 9: see what these elections are not going to be decided
Speaker 9: in one day. It's going to take a long time
Speaker 9: for every single vote to be counted, but that's really
Speaker 9: the integrity of the process, for every single vote to
Speaker 9: be counted.
Speaker 5: Jamie Taabey, we thank you so much.
Speaker 3: In the world of social media, both x and Meta
Speaker 3: have indicated they went too far on content moderation back
Speaker 3: in twenty twenty. Now academics say all the elements are
Speaker 3: in place for abuse of those platforms despite efforts to
Speaker 3: suppress misinformation around this election. Let's discuss with Bloomberg's social
Speaker 3: media reporter Alexandro Levine, who has some really interesting perspectives
Speaker 3: on how the landscape has changed from twenty twenty four
Speaker 3: versus twenty twenty, how has it.
Speaker 2: I say the biggest changes have really occurred across three
Speaker 2: main platforms, being Meta, Twitter, now, X, and TikTok. So
Speaker 2: just to start for X, back in twenty twenty, it
Speaker 2: was still really the center of the political universe.
Speaker 5: It was the online.
Speaker 2: Political capital, the digital water cooler, if you will, where
Speaker 2: journalists always were spending their time, where political figures public
Speaker 2: figures were spending their time, and really a primary destination
Speaker 2: for funding news. When Elon Musk took over a couple
Speaker 2: of years ago, I think a lot of that really changed.
Speaker 2: And in addition to him deciding that he did not
Speaker 2: want to build off a lot of the election integrity
Speaker 2: work and safeguards that hadn't been built by Twitter for
Speaker 2: twenty twenty and also for twenty sixteen and even earlier
Speaker 2: than that, Elon Musk has also really been using the
Speaker 2: platform to rally support for Republican candidate Donald Trump, and
Speaker 2: so that has completely changed the nature of the platform
Speaker 2: for many people. The second being Meta, Meta really saw
Speaker 2: its role. Mark Zuckerberg saw Meta's role in previous elections
Speaker 2: as really being proactive and really being proactive in allowing discourse,
Speaker 2: but also protecting it and being very forward thinking about
Speaker 2: labeling and trying to really fight proactively missin disinformation around
Speaker 2: the election. Now Meta is actually doing really a hard
Speaker 2: one to eighty. They are moving away from promoting political
Speaker 2: content altogether. They are really now favoring posts that don't
Speaker 2: have anything to do with pout. So when I was
Speaker 2: on my Instagram feed this morning, I actually saw nothing
Speaker 2: related to the election. And then the third big piece
Speaker 2: of this that is totally different from where we were
Speaker 2: at in twenty twenty is was TikTok. TikTok was around
Speaker 2: during the last election, but it was nowhere near as
Speaker 2: big and as powerful as it is today. Now we're
Speaker 2: you know, roughly twice the size. TikTok is roughly twice
Speaker 2: the size in the US today.
Speaker 5: That it was, you know, in twenty twenty.
Speaker 2: There's more than one hundred and seventy million users, and
Speaker 2: I think that a lot of the political discourse has
Speaker 2: really moved over there.
Speaker 4: You know, it's strangely to say, it feels like yesterday,
Speaker 4: the twenty twenty election cycle, and how often on this
Speaker 4: program we were covering misinformation that names themselves. But it's
Speaker 4: a different time. Is there anything that's sort of specific
Speaker 4: or unique to this election cycle, Alexandra, that you've been
Speaker 4: focused on in that Business Week piece.
Speaker 2: Yeah, well, I think miss in disinformation to your point,
Speaker 2: it's been talked about now for a lot longer, Like
Speaker 2: people are much more savvy about it than they were,
Speaker 2: both people consuming misindisinformation and also the social media comp
Speaker 2: and He's trying to handle it, and also the journalists
Speaker 2: and researchers trying to understand it.
Speaker 5: I think what's different is just the role.
Speaker 2: That the platforms are choosing to take this time, and
Speaker 2: also our ability as the public to be able to
Speaker 2: understand what we are seeing, where it is coming from,
Speaker 2: and who's behind it. Both Twitter and Meta as I
Speaker 2: just said, they are taking a much more hands off
Speaker 2: approach this time to the election. Both Mark Zuckerberg and
Speaker 2: Elon Musk have slashed members of the teams that were
Speaker 2: responsible for protecting the election, the Election Integrity and Trust
Speaker 2: in Safety teams. And then on top of that, our
Speaker 2: ability to actually understand what is trending on the platforms
Speaker 2: has gotten worse so in the last year, last couple
Speaker 2: of years, Elon Musk, for example, has turned has made it.
Speaker 5: A lot harder for folks who.
Speaker 2: Previously had to access, like researchers to all of the
Speaker 2: analytics that shows what is trending on Twitter. He's made
Speaker 2: it much much more expensive for most research to be
Speaker 2: able to researchers to be able.
Speaker 5: To access that.
Speaker 2: Earlier this year, Meta shut down crowd Tangle, which has
Speaker 2: basically made it harder for misinformation research just to track
Speaker 2: what's going on the platform.
Speaker 5: And last but not least, TikTok.
Speaker 2: Just earlier this year as well removed video, sorry video
Speaker 2: of view acounts on viral hashtags on the platform, so
Speaker 2: you can no longer look at a hashtag and know
Speaker 2: how many people around the world are looking at it
Speaker 2: at one time. And I think, on top of that,
Speaker 2: because so much of the conversation that floy twenty was
Speaker 2: fixated on just a couple of main platforms, being Facebook, Twitter,
Speaker 2: and YouTube, now you've got everything happening on TikTok, on
Speaker 2: truth Social Trump's platform, and on many small or less
Speaker 2: moderated forms as well, just creating a lot more of
Speaker 2: a chaotic atmosphere where all of this missing disinformation that
Speaker 2: people have grown more accustomed to is just becoming harder
Speaker 2: to understand, it harder to track.
Speaker 4: Blim begs Alexandra Levine, who's worked with the team on
Speaker 4: this in an upcoming business sweep piece, thank you very
Speaker 4: much for doing coming out important Reportingcome back to Bluemotechnology.
Speaker 5: I'm Karen Hyde and New York.
Speaker 4: Named Ludlow in San Francisco. It is November fourth or
Speaker 4: November fifth. We have a US election, and when you
Speaker 4: look at markets, particularly in the context of tech and
Speaker 4: then index level, we're treading water, not really having any direction.
Speaker 4: It's a dead heat. We've talked about that throughout the program.
Speaker 4: But what I find so fascinating carriage if you look
Speaker 4: at single names or specific examples. That's also reflected. Right,
Speaker 4: we just talked about social media policy on misinformation sharing
Speaker 4: election related content. Well, Meta is completely flat in the
Speaker 4: session this Monday. Snap is down one point seven percent,
Speaker 4: but remember it rallied hard last week on earnings, and
Speaker 4: then there's the Trump trade DJT, the parent company, a
Speaker 4: true social modestly higher three tenths of one percent, but
Speaker 4: not the sort of big move in either direction that
Speaker 4: we've seen as a barometer maybe of sentiment in the
Speaker 4: markets that any outcome. It's a dead heat. Keep saying it,
Speaker 4: but I think there's a lot to discuss for both
Speaker 4: campaigns throughout the rest of the show.
Speaker 3: There is, we'll get to it, but first up in
Speaker 3: his time now for Talking Tech, and we're going to
Speaker 3: discuss the EU regulators saying that they'll review an Apple
Speaker 3: report showing that its iPad operating system now complies to
Speaker 3: the Digital Markets Act. According to the Act, Apple must
Speaker 3: allow users to set a default web browser of their choice,
Speaker 3: allow alternate app stores on its operating system, and allow
Speaker 3: accessories to access iPad os features.
Speaker 5: Plus.
Speaker 3: In a surprise move, Schneider Electric has outsaid its CEO
Speaker 3: Peter Herwork after only a year and a half in
Speaker 3: the role. Now Herk will be replaced with group veteran
Speaker 3: Olivier Bloom, effective immediately. In the company's statement, Schneider, which
Speaker 3: has focused a lot on AI energy management, cites disagreements
Speaker 3: with the board over the strategic direction for the ouster
Speaker 3: and in ol Musk was dealt a setback in court.
Speaker 3: A judge ruled late Friday that former Twitter CEO parag
Speaker 3: Agrowl and other high ranking.
Speaker 5: Officers could proceed.
Speaker 3: With claims that must terminate them as he closed the
Speaker 3: buyout deal, cheating them out of severance pay before they
Speaker 3: could submit regasignations.
Speaker 5: A little bit more on in a Musk.
Speaker 4: Now, and yeah, let's stay with Elon Musk's recent pro
Speaker 4: Trump packed sweepstakes have been undiscrutinated amid a heated election
Speaker 4: season and are now being contested in court. Bloomberg's Tony Aaron's,
Speaker 4: a legal editor, joins us. Now, we're talking about legal
Speaker 4: proceedings happening in Pennsylvania playing out in the last two
Speaker 4: hours or so. What's the latest, Tony, Oh.
Speaker 5: The hearings there.
Speaker 8: The judge indicated he's not going to rule, probably before noon,
Speaker 8: so it's going to be a little while until we
Speaker 8: know what's going to happen. The question is how significant
Speaker 8: the ruling's going to be. Today's the last day that
Speaker 8: he was going to have the sweepstakes, And even if
Speaker 8: the judge stops it, that's one payment and it'll probably
Speaker 8: go ahead and the other sweep stakes. So the only
Speaker 8: thing that will probably happen is one person from Pennsylvania
Speaker 8: won't be able to get a million dollars.
Speaker 5: What is the legal elements to this? What is so
Speaker 5: taught around it?
Speaker 8: Well, but when people were talking about the federal issues,
Speaker 8: it was whether Elon Musk was buying voters and that's
Speaker 8: not what's going on in Pennsylvania, and Pennsylvania are doing
Speaker 8: two state laws. Which that's why it was thrown out
Speaker 8: of federal court because it's just about these two state issues.
Speaker 8: It's one is it a consumer protection issue? Is he
Speaker 8: taking advantage of consumers? And two is it an illegal lottery?
Speaker 8: There are certain there are a lot of rules about
Speaker 8: how you have a lottery and how you ensure it's
Speaker 8: really random. And that's what the Philadelphia District Attorney is saying,
Speaker 8: isn't happening here.
Speaker 3: Ed, I think we've taught a lot about that particular
Speaker 3: face that we've got plenty more on the election next though.
Speaker 4: Yeah, the election's fast approaching, and we have been speaking
Speaker 4: to voices in technology in venture capital on both sides
Speaker 4: of the race. I want to bring back to the
Speaker 4: show Shannon Nash, co founder of the Tech for Kamala Group,
Speaker 4: supporting the bid of Vice President Kamala Harris for president,
Speaker 4: and your support of Vice President Harris is well known.
Speaker 4: I wondered if we could move the conversation forward and
Speaker 4: all of the time that you've spent on the road
Speaker 4: with the campaign and with your peers in industry. Have
Speaker 4: you a firm or understanding of the Vice president's policy
Speaker 4: platform as it relates to the technology industry.
Speaker 5: Yeah, and you know, thanks for having me back.
Speaker 10: I think we've gotten a lot from Kamala Harris over
Speaker 10: the last it's only been two months, by the way.
Speaker 10: A lot of it has been a focus on just
Speaker 10: the approach on how she in that in her administration
Speaker 10: will be open and collaborative to technology, to innovation, to
Speaker 10: hearing different voices. You know, Look, there's lots of people
Speaker 10: who have done a lot of coverage on the big
Speaker 10: billionaires with the microphones, but not enough coverage on the
Speaker 10: seven million people who make up the fabric of tech
Speaker 10: and what their voices say and what they want to
Speaker 10: see in a new administration. And that's what she's been
Speaker 10: very open to listening to.
Speaker 4: I think people want specifics. So, for example, our colleagues
Speaker 4: at Bloomberg Intelligence, which is our in house research arm,
Speaker 4: say that if former President Trump reclaims the White House,
Speaker 4: the ira EV incentives will be impacted. Conversely, with Vice
Speaker 4: President Harris, they basically see continuity that nothing will change.
Speaker 4: But that's not in and of itself policy. It's just
Speaker 4: maintaining the status quo.
Speaker 10: It's that policy, and quite frankly, I think you have
Speaker 10: to look at things like let's go to climate tech,
Speaker 10: for example, and look at what her opponent has said
Speaker 10: about climate tech, and of course Project twenty twenty five
Speaker 10: has said about climate tech. One of my co founders
Speaker 10: is Julia Collins, who is the CEO of a climate
Speaker 10: tech company called Planet Forward, and we're very concerned about
Speaker 10: not climate tech just for it's good for the economy,
Speaker 10: but what it really spurs in terms of innovation and
Speaker 10: growth for our economy. Her opponent has said that they're
Speaker 10: willing to dismantle the EPA, FEMA, ETCA. Kamala Harris has
Speaker 10: come out and said, no, we're actually going to support
Speaker 10: climate tech. We're going to look at growing this industry.
Speaker 10: And so she has come out and actually been very
Speaker 10: vocal about certain areas in tech. For sure, I could
Speaker 10: also talk about AI. She's come out and talked about
Speaker 10: being very collaborative in terms of looking at how we
Speaker 10: approach AI regulation in a way to stifle competition, but
Speaker 10: a way to be ethical, in a way to be
Speaker 10: supportive of a very new technology that we're all just
Speaker 10: really trying to wrap our arms around.
Speaker 5: But let's just talk.
Speaker 3: About regulation for a moment and place. He went there, Shannon,
Speaker 3: because we had Vivik Ramaswami, of course, who is a
Speaker 3: supporter of Trump and the campaign there on the show
Speaker 3: on Friday, and his main focus is the fact that
Speaker 3: we need to reduce regulation.
Speaker 5: Just take a listen to what he said.
Speaker 11: Problem with Washington, DC is every time they pass one
Speaker 11: of these laws, the Inflation Reduction Act or the Chips Act,
Speaker 11: there's so much other baggage they sneak into there that
Speaker 11: it dilutes the original vision or purpose of the Act
Speaker 11: in the first place. You want to foster semiconductor production
Speaker 11: in the United States, as I do, Here's how we
Speaker 11: do it, mass deregulation that lifts those regulatory constraints in
Speaker 11: the United States.
Speaker 3: Is there a risk that people believe that Vice President
Speaker 3: Harris is synonymous to more regulation and therefore lack of innovation.
Speaker 10: I think the risk is that having this wild wild
Speaker 10: West where we have no regulation is very dangerous for
Speaker 10: in the v is very dangerous for progress for our country.
Speaker 10: And I also think that it actually will stifle our
Speaker 10: competitive advantage. So I think it's actually the opposite I
Speaker 10: think that when industries have guardrails that are balanced in
Speaker 10: the way that don't stifle competition, but in a way
Speaker 10: that give us like a playing field, I think we
Speaker 10: do better as an industry, if you will. So I
Speaker 10: disagree with that in quite frankly, I think that Kamala
Speaker 10: Harris is really working on policies that will allow us
Speaker 10: to come up with those guardrails in a way that
Speaker 10: we can continue to be competitive and stay innovative.
Speaker 3: What about the people that need to be surrounded if
Speaker 3: she does become the next president leads an administration many
Speaker 3: many would say synonymous with her as vice president were
Speaker 3: those that lead the SEC those that lead the FTC.
Speaker 3: And therefore that's an issue for m and A for
Speaker 3: your sector. It's also an issue for regulation, particularly around
Speaker 3: the crypto area. How do you want to see change,
Speaker 3: if any, of leadership of those sorts of areas.
Speaker 10: I do think that some of those areas do need
Speaker 10: a change of leadership, and I think that's healthy that
Speaker 10: I think that that will. You know, we are in
Speaker 10: a different age, if you will, for the next four years,
Speaker 10: in terms of even how you look at, you know,
Speaker 10: things like generative AI. So we do need to have
Speaker 10: some new leaders, but I think that she is open
Speaker 10: to bringing together different voices to do that, So I
Speaker 10: think you'll see some changes. Look, you know, she's been
Speaker 10: very vocal about she's going to be her own president
Speaker 10: that just because certain things happen during the Biden administration
Speaker 10: doesn't mean it's just going to be status quo and
Speaker 10: just the same old thing. She's a new person, a
Speaker 10: new president, with different experiences. She's very qualified in terms
Speaker 10: of what I think about candidates qualified to be president,
Speaker 10: having served you know, our beautiful state of California as
Speaker 10: the Attorney General. So what I think you'll see is
Speaker 10: some changes needed changes, quite frankly, but you'll also see
Speaker 10: more innovation in more people at the table.
Speaker 4: Shannon, there are high profile individuals in the world of
Speaker 4: technology and bench capital on both sides. Right and last
Speaker 4: week Read Hoffman was on the program the LinkedIn co
Speaker 4: found a grey Lock partner. One of the points he
Speaker 4: made was this has been divisive. It's caused tension in relationships,
Speaker 4: you know, literally between LPs and the bench caps as
Speaker 4: they work with or getting in on deals. What's your
Speaker 4: experience been of that, you know, somebody established in the industry,
Speaker 4: I got to tell.
Speaker 10: You my experience has been and I've been out there,
Speaker 10: I've been cam As saying, I've gone to different states.
Speaker 10: My experiences, even starting with being at the Democratic National Convention,
Speaker 10: is that she's bringing in more joy to politics. I'm
Speaker 10: actually seeing, you know, out there when I talk to people,
Speaker 10: even if they don't agree with you, people are willing
Speaker 10: to listen one on one in a way that is
Speaker 10: not divisive. You know, Kamala Harris has recently even said
Speaker 10: that it's okay that you don't agree with her. She
Speaker 10: wants to be the president for all. She knows that
Speaker 10: there's people out there that there aren't going to vote
Speaker 10: for her. She knows that there's people out there that
Speaker 10: are not going to agree with her, and that's okay.
Speaker 10: And I think that's how we've been approaching this, is
Speaker 10: that we still need to come together as one United America.
Speaker 5: And so that is what I'm hearing.
Speaker 10: When I talk to people one on one about this,
Speaker 10: not this deviceive like kind.
Speaker 5: Of hate speak.
Speaker 3: If you will, you come with experience in the financial
Speaker 3: areas and startup CFO of wing of other businesses you're
Speaker 3: on the boards. How have you talked about companies strategizing
Speaker 3: for this. If indeed Kamala doesn't become the next president
Speaker 3: and we know instead a Trump presidency, how do you navigate?
Speaker 10: Yeah, I think that, you know, we will have to
Speaker 10: you know, we we will have to navigate if that
Speaker 10: does happen. But I don't like to put those type
Speaker 10: of things out there in the universe. So we do
Speaker 10: believe that Kamala Harris is going to win, and we
Speaker 10: do believe that we will have a seat at the table.
Speaker 5: And that's what's really important.
Speaker 10: And so honestly, that's what we've been focusing on, is
Speaker 10: how do we bring together these diverse voices, get them
Speaker 10: at the table and really talk about spawning and continuing
Speaker 10: the innovation in our competitive advantage.
Speaker 3: Shanna Nash, we appreciate your time. Texta Comma co founder
Speaker 3: coming up plenty more when it comes to the election
Speaker 3: and the United States and technology, the SI Blomberg technology.
Speaker 4: We just talked with someone on the Democratic Party side
Speaker 4: of this election. Let's bring in someone on the other side.
Speaker 4: All Off VC founder Crystal mckeller, who's supporting the Republican
Speaker 4: ticket of former President Donald Trump along with JD Vance,
Speaker 4: whom mckeller has previously worked with and welcome back to
Speaker 4: the program.
Speaker 5: Thank you so much for having me back.
Speaker 4: I think what we're trying to find out is that
Speaker 4: in the time that's passed, has anything changed or developed.
Speaker 4: You've emphasized deregulation, as of many other Trump surrogates and
Speaker 4: Trump himself, is that the totality of why you think
Speaker 4: President Trump, former President Trump is best for the technology industry.
Speaker 12: So deregulation is an important part of the story. The
Speaker 12: regulations that are promulgated by the administrative state, the unelected
Speaker 12: administrative state is certainly a problem, but more globally, the
Speaker 12: reason that I support President Trump and JD. Vance is
Speaker 12: because they are going to implement not just they're not
Speaker 12: going to just roll back regulations that are stifling American industry,
Speaker 12: but they're actually going to actively implement policies that will
Speaker 12: stimulate growth and encourage innovation. I encourage American ingenuity, which
Speaker 12: is absolutely essential to usher in a boom in American
Speaker 12: industrial manufacturing.
Speaker 7: And this is an issue not.
Speaker 12: Only of American prosperity, but also of national security. Is
Speaker 12: something that people like myself who invest in the national
Speaker 12: security space spend a lot of time thinking about because
Speaker 12: the policies of the current administration which have led to
Speaker 12: the continued offshoring of critical components of American manufacturing, of
Speaker 12: the American defense industry, as well as our disastrous energy policies.
Speaker 12: They've made the United States less prosperous and less safe,
Speaker 12: and that goes beyond just regulation.
Speaker 4: Well, some might say, on the other hand, you have
Speaker 4: the Chips Act, the Inflation Reduction Act that has legislated
Speaker 4: to unsure those two specific industries. Companies like Anderil have
Speaker 4: thrived in the last four years.
Speaker 12: I would argue that Anderil has thrived despite the last
Speaker 12: four years. I mean, what do you need for a
Speaker 12: healthy manufacturing base. You need cheap, abundant energy, you need
Speaker 12: low inflation, you need low interest rates.
Speaker 5: And the current.
Speaker 12: Administration gets a CNS on all of this. So, yes,
Speaker 12: tech founders will find a way despite the policies of
Speaker 12: the current administration, not because of them. You can't legislate growth,
Speaker 12: you can legislate policies.
Speaker 7: And I'll give an example.
Speaker 12: So, for example, one of the critical inputs for manufacturing
Speaker 12: is energy. Nuclear is the cheapest, safest, most energy dense
Speaker 12: form of energy based a form of baseload power that
Speaker 12: we have here in the United States, and yet the
Speaker 12: Harris Biden administration has blocked the development of a million
Speaker 12: acres on the Arizona, Utah border, which is the sole
Speaker 12: source of US based high grade uranium. And so rather
Speaker 12: than sure this absolutely critical domestic source, what.
Speaker 7: Are we doing.
Speaker 12: We are the largest buyer of Russian You're enrich uranium.
Speaker 12: I mean, this is just bananas that not only have
Speaker 12: we made ourselves reliant on a foreign adversary for American
Speaker 12: base load power, but we've also were also literally funding
Speaker 12: the Russian nuclear weapons complex because why because of a
Speaker 12: policy decision, Because the Harris Biden administration, that White House
Speaker 12: decided to bow to the very well funded lobbying of
Speaker 12: a particular interest group in the United States, and they
Speaker 12: chose that interest group above the national security interests of
Speaker 12: the United States and our allies. That is one example
Speaker 12: that's not regulation, that's a policy.
Speaker 3: Now, I don't know the nuances of exactly that particular
Speaker 3: investment in nuclear however, I'm pretty sure that limitations on
Speaker 3: imports from Russia.
Speaker 5: And I'm also certain.
Speaker 3: That we've seen deals from Microsoft, from Google, announcements from
Speaker 3: Amazon saying that they will invest in nuclear energy, and
Speaker 3: that happens under this current administration, not a future potential
Speaker 3: Trump one.
Speaker 5: And so I'm.
Speaker 3: Interested more broadly about what you're trying to articulate when
Speaker 3: it comes to actual policies that you think will be
Speaker 3: brought in that bring the innovation you talk.
Speaker 12: To absolutely, and that is and it's a great development
Speaker 12: that there is an understanding that nuclear is one hundred
Speaker 12: percent the answer not only for United States manufacturing, but
Speaker 12: also frankly, how are we going to keep up with
Speaker 12: the energy requirements of AI, which is a good thing,
Speaker 12: and how are we also going to respond to the
Speaker 12: concerns about climate change? How are we going to mitigate
Speaker 12: climate change? Nuclear is an essential part of that. And
Speaker 12: one thing I should mention is that six members of Congress,
Speaker 12: I mean, to your point, we should not be enriching
Speaker 12: the Russian state, and six Republican members of Congress earlier
Speaker 12: this year passed a bill limit.
Speaker 4: Carrie's point was that we're enriching the Russian state. I
Speaker 4: think her question was sure Russia is subject to both
Speaker 4: export and import controls.
Speaker 5: It is, it should be.
Speaker 12: And so six members of Congress passed a bill earlier
Speaker 12: this year to limit our import of uranium because we
Speaker 12: shouldn't be buying it from Russia under any.
Speaker 5: Rationale point of view.
Speaker 12: And yet what does this bill do. The Bill of
Speaker 12: the White House sign includes an enormous waiver that mandates
Speaker 12: that continue or essentially Mandy's to continue purchase of uranium
Speaker 12: from Russia through twenty twenty eight. So I agree, we
Speaker 12: should not be buying uranium from Russia. We should not
Speaker 12: be dependent on a critical input for energy in the
Speaker 12: United States from Russia, and yet we are. So that
Speaker 12: is a direct result of the Biden Harris administration's policies.
Speaker 3: I spoke with the Energy Sectory a month or so ago,
Speaker 3: and she was very much focused on bringing nuclear energy
Speaker 3: back to power data centers back here in the United States.
Speaker 3: I just want to go to perhaps some of the
Speaker 3: level of tension and indeed ongoing relationships with people when
Speaker 3: it comes to November six, seventh, eighth, no matter what
Speaker 3: the outcome is. We had read Hoffmann on of course
Speaker 3: key bench capitalist founder, but also someone who supports the
Speaker 3: Harris campaign. Now he articulated he's worried that there might
Speaker 3: be some sort of form of retribution.
Speaker 5: Can you just take a listen.
Speaker 8: Trump and Trump presidency won you know his early presidency
Speaker 8: has shown a certain.
Speaker 5: Amount of grift or capitalism.
Speaker 8: It's like trying to penalize his opponents using the instruments
Speaker 8: of state.
Speaker 5: We have about thirty seconds.
Speaker 3: But do you worry about penalization no matter what happens
Speaker 3: on the other.
Speaker 5: Side, I don't think so.
Speaker 8: No.
Speaker 12: You know, I am a patriot, I am an American
Speaker 12: crew and threw I mean, first of all, I don't
Speaker 12: think that it's notable that he could not point to
Speaker 12: a single example of retribution by Donald Trump.
Speaker 5: The current administration.
Speaker 12: We had seen a tremendous uptick in prosecutions of people
Speaker 12: who are associated with the Trump administration. So perhaps, I mean,
Speaker 12: perhaps that there is some concern if the Democrats come
Speaker 12: back in office. But I'm optimistic enough to think that
Speaker 12: I don't think that the Democrats are going to retaliate
Speaker 12: against people who, you know, who voted their conscious and
Speaker 12: who spoke our conscience, and who spoke out against the
Speaker 12: policies that we believe are crushing American industry.
Speaker 4: I just want to point out that on May thirteenth,
Speaker 4: President Joe Biden signed into a law of ban on
Speaker 4: imports of uranium into.
Speaker 5: This country exactly. But we waiver.
Speaker 4: We are our time, but I promise we will have
Speaker 4: you back again. Russell mckella, l our VC, founder.
Speaker 3: Tech focused hedge fund KOTO, is looking to raise one
Speaker 3: billion dollars to amplify bets on artificial intelligence, first time
Speaker 3: it's looked for cash for its flagship fund in the years.
Speaker 3: No mag Tamma Palmer reports us out, joins us.
Speaker 5: How big a deal is it that they're reopening. It's
Speaker 5: a significant move.
Speaker 13: This is their flagship hedge fund, it's got fourteen billion
Speaker 13: dollars and they're looking to raise a whole billion dollars
Speaker 13: more to invest in AI. And it's been years since
Speaker 13: they've opened up their main hedge funds to new cash,
Speaker 13: so it's a significant move.
Speaker 4: Hemmer. I feel like Felipe Lafont's name comes up a
Speaker 4: lot in the context of AI. Talk to us about
Speaker 4: him as a champion of the sector.
Speaker 13: Yes, he has been a bullish, an avid enthusiast for
Speaker 13: AI and as technology and its potentiality. And you see
Speaker 13: it in their investments and the video is one of
Speaker 13: their biggest holdings and videos one of their biggest holdings.
Speaker 5: You see it in the way he speaks about the space.
Speaker 13: He has talked about how he thinks that humanoid robots
Speaker 13: are going to be part of the future in fifteen years.
Speaker 13: He sees a lot of opportunity when it comes to AI,
Speaker 13: but also peripheral areas like AI infrastructure and technology and
Speaker 13: energy sectors. So what you're seeing now is that really
Speaker 13: come to play in his portfolio.
Speaker 3: Very briefly, the relationship with Raymond James, Well, does that
Speaker 3: signal yes.
Speaker 13: So it's part of a broader trend we're seeing in
Speaker 13: the hedge fund space where they are increasingly turning to
Speaker 13: bank wealth platforms to raise money. This is a group
Speaker 13: of people that hadn't had access to hedge funds and
Speaker 13: private equity and venture capital for many years, and so
Speaker 13: it's also a space where they can these funds can
Speaker 13: raise money as institutional investors have become a little bit
Speaker 13: more cautious on the space and.
Speaker 5: Have been a little bit more reticent. And that was
Speaker 5: individuals helping me.
Speaker 4: Yeah, big thanks to Bloomberg's Hemma Palma with another big breaker.
Speaker 5: Wow, what a show, and that does it.
Speaker 3: With this very special Ed Ludlow Birthday edition of Bloomberg Technology,
Speaker 3: we wish you a very happy.
Speaker 5: Birthday, Ed.
Speaker 4: Yeah, It's quite a week to celebrate a birthday, which
Speaker 4: seems inconsequential. Things considered recap on the podcast, so many
Speaker 4: important discussions and pieces of reporting. You know where to
Speaker 4: find the pod online on Apple, Spotify, and iHeart, and
Speaker 4: of course on the Bloomberg platforms. Thank you to the
Speaker 4: team in New York City and all the team out
Speaker 4: here in San Francisco. This is Bloomberg Technology.