WEBVTT - AI Fuels Tech Selloff, President Trump To Meet Tech CEOs 0:00:00.840 --> 0:00:05.159 From the heart of where innovation, money and power collide 0:00:05.360 --> 0:00:10.640 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.800 --> 0:00:12.280 Caroline Hide. 0:00:11.880 --> 0:00:27.360 And Ed Ludlow live from New York. 0:00:27.400 --> 0:00:31.360 I'm Caroline Hyde and I'm Jackie Devalas in Washington. This 0:00:31.480 --> 0:00:33.120 is Bloomberg Technology coming up. 0:00:33.159 --> 0:00:35.680 The AI sell off continues, with the chip sector under 0:00:35.680 --> 0:00:39.360 pressure after earnings fail to turn the tide. This is 0:00:39.920 --> 0:00:43.800 Chinese AI competition fuels anxiety in the United States, but 0:00:43.880 --> 0:00:47.320 stock gains over in Asia. And President Trump is set 0:00:47.360 --> 0:00:49.600 to meet with some of the biggest US tech leaders 0:00:49.600 --> 0:00:52.920 next week to discuss the trade policy impact US manufacturing 0:00:52.920 --> 0:00:55.040 and much more. But first we've got to check in 0:00:55.080 --> 0:00:57.200 on these markets. They're still in sell off mode. We 0:00:57.320 --> 0:00:59.200 bounce off of our lows for the nawstep, we're still 0:00:59.200 --> 0:01:00.319 off by more than a percent point. 0:01:00.320 --> 0:01:00.920 Then that's that one. 0:01:00.880 --> 0:01:03.360 Hundred dragged lower from a points perspective by in video, 0:01:03.400 --> 0:01:06.000 by Broadcon, by Amazon, And notably, we're on track for 0:01:06.000 --> 0:01:09.080 a third week of declines, the longest losing streak since 0:01:09.120 --> 0:01:11.320 back in August. But I shine like what happened in 0:01:11.440 --> 0:01:14.200 Chinese tech. We're up more than five percent on the 0:01:14.280 --> 0:01:16.840 Hangsang Tech index. We go delve into why with the 0:01:16.880 --> 0:01:20.200 AI impact coming from Ali Barber from ten Cent, move 0:01:20.240 --> 0:01:22.680 on and look at the individual movers that are affecting 0:01:22.840 --> 0:01:25.280 the chip trade here in the United States. In Video 0:01:25.319 --> 0:01:27.080 off by two point four percent, we drag lower on 0:01:27.120 --> 0:01:29.920 a points perspective. Broadcom has its numbers after the bell 0:01:30.520 --> 0:01:33.279 AI still likely to drive growth twenty percent in excess 0:01:33.319 --> 0:01:34.200 of revenue. 0:01:33.840 --> 0:01:35.880 Gains, but we are worried more. 0:01:36.000 --> 0:01:38.360 About whether they can live up to the hype cycle 0:01:38.400 --> 0:01:40.320 that I've been so used to and shake off the 0:01:40.360 --> 0:01:44.319 rest sentiment that has consumed Marvell. Of by seventeen percent, 0:01:44.600 --> 0:01:47.040 they managed to post more than sixty percent revenue growth 0:01:47.240 --> 0:01:50.560 that investors don't care. Blomberg's Bailey Lipschualtz is here for 0:01:50.680 --> 0:01:55.360 why fundamentals ultimately, Bailey don't matter at this moment because 0:01:55.400 --> 0:01:56.720 we are selling what we used to love. 0:01:57.000 --> 0:01:59.200 We're selling what we used to love, and it's causing 0:01:59.240 --> 0:02:01.680 so much concern consternation. You have the tear risk or 0:02:01.680 --> 0:02:04.160 at least the headaches around that. As you mentioned, Marvel 0:02:04.240 --> 0:02:06.400 down more than seventeen percent at one point, the biggest 0:02:06.440 --> 0:02:09.160 intra day decline in about a decade. This is a 0:02:09.200 --> 0:02:11.280 big move for a big stock. All eyes will be 0:02:11.560 --> 0:02:14.200 on Broadcom as you mentioned later this evening, But the 0:02:14.200 --> 0:02:16.680 big question is what does that AI demand look like? 0:02:16.919 --> 0:02:20.440 Can China actually replicate what we're seeing for a much 0:02:20.520 --> 0:02:23.359 cheaper price, and how does that ultimately impact the markets, 0:02:23.400 --> 0:02:25.600 especially in a day or a week that we've been 0:02:25.639 --> 0:02:28.960 seeing with sawing moves on the major exchanges. Based on 0:02:29.000 --> 0:02:31.640 every headline around trade. 0:02:31.480 --> 0:02:34.919 Bailey, it's clear that hardware names here are getting really 0:02:35.040 --> 0:02:37.919 hit hard. What are we seeing on the software side? 0:02:38.040 --> 0:02:41.080 Are they insulated any more than we're seeing for the 0:02:41.080 --> 0:02:42.320 semiconductor stocks? 0:02:42.600 --> 0:02:45.080 Maybe a bit, Jackie, But the big question still is 0:02:45.120 --> 0:02:47.240 what do earnings look like? What does growth look like? 0:02:47.280 --> 0:02:49.640 If you're saying that maybe companies aren't going to have 0:02:49.680 --> 0:02:51.239 to spend as much or maybe they're going to find 0:02:51.280 --> 0:02:54.480 cheaper alternatives, that's obviously going to hit your hardware, your 0:02:54.520 --> 0:02:57.040 semiconductors makers. But the big question if you're a software 0:02:57.040 --> 0:03:00.480 company is how are you going to use cheaper costs 0:03:00.520 --> 0:03:03.919 potentially to improve your offerings and what does that actually mean? 0:03:04.040 --> 0:03:05.400 And the big question at the end of the day 0:03:05.440 --> 0:03:08.200 is what does the valuation actually look like and how 0:03:08.240 --> 0:03:10.919 are you being valued? What is a fair value how 0:03:10.919 --> 0:03:12.720 does that compare to the broader market, and in a 0:03:12.760 --> 0:03:14.840 market that really is driven by seven stocks, if not 0:03:15.000 --> 0:03:17.960 one stock, how does your company fit into that landscape? 0:03:18.000 --> 0:03:21.519 And how can investors appropriately value and allocate resources. 0:03:22.639 --> 0:03:26.240 That's Bloomberg's Biley Lipsheldznthemus for joining us. A series of 0:03:26.320 --> 0:03:29.480 new AI tools from China sparked frenzy trading in the 0:03:29.560 --> 0:03:32.720 nation's stock market, propelling an index of tech companies to 0:03:32.800 --> 0:03:36.280 a multi year high. Bloomberg's Isabell Lee joins us Now 0:03:36.360 --> 0:03:39.160 for more, Isabelle walk us through some of those new 0:03:39.160 --> 0:03:42.040 AI features and the companies in particular that are spurring 0:03:42.040 --> 0:03:42.640 this excitement. 0:03:43.000 --> 0:03:44.960 So we have a lot of news overnight in China, 0:03:45.000 --> 0:03:47.120 we saw ali Baba stock surgeon more than eight percent, 0:03:47.160 --> 0:03:49.520 although it's worth noting that the ADRs right now are 0:03:49.560 --> 0:03:52.320 parent back some of those games. Investors are probably digesting 0:03:52.320 --> 0:03:55.880 some of those news, taking their profits. So Alibab unveiled 0:03:55.880 --> 0:03:58.720 their new open AI source model. It's open source and 0:03:59.320 --> 0:04:02.520 it's marked lea better than the previous one using just 0:04:02.560 --> 0:04:05.400 a fraction of data from deep sks R one employees. 0:04:05.400 --> 0:04:08.200 Ten Cent also unveiled a new open source model, so 0:04:08.320 --> 0:04:11.160 did a company called Kaishaw Technology, and earlier this week 0:04:11.280 --> 0:04:14.360 Managed Ai launched water called General AI Agent. So all 0:04:14.400 --> 0:04:17.360 of this basically has boosted Chinese textures by five point 0:04:17.400 --> 0:04:20.159 four percent of its highest since twenty twenty one. And 0:04:20.200 --> 0:04:22.600 Alabama in particular I want to Highlight has been on 0:04:22.640 --> 0:04:24.920 a tear. It gained some one hundred and fifty three 0:04:24.960 --> 0:04:28.240 dollar billion dollars in market value since it's January low. 0:04:28.320 --> 0:04:30.440 So what does this tell us that the next deep 0:04:30.480 --> 0:04:33.720 seek to disrupt the global AI industry could definitely come 0:04:33.720 --> 0:04:34.279 from China. 0:04:34.920 --> 0:04:38.360 It's extraordinary that Asali Baba has surged, we've lost about 0:04:38.400 --> 0:04:41.120 forty percent of market capitalization for Marvell and the likes 0:04:41.120 --> 0:04:44.080 here in the United States is about when we're thinking 0:04:44.080 --> 0:04:46.039 about these models. They are showing that you can do 0:04:46.120 --> 0:04:48.200 more with less when it comes to data, when it 0:04:48.279 --> 0:04:49.719 also comes to compute power. 0:04:50.040 --> 0:04:52.400 But we didn't hear from Amazon, from. 0:04:52.240 --> 0:04:54.880 Microsoft, from the hyperscals that they were pulling back on 0:04:54.960 --> 0:04:57.120 investment in general to AI infrastructure. 0:04:57.440 --> 0:05:00.120 Absolutely, in the previous round of the earning season, you 0:05:00.200 --> 0:05:02.640 saw those big tech companies like Microsoft and Meta even 0:05:02.680 --> 0:05:05.800 doubling down on their AI cap expend They're still remaining 0:05:05.800 --> 0:05:08.920 committed there's still all in when it comes to developing AI, 0:05:08.960 --> 0:05:11.560 but these Chinese tech companies are showing us that it 0:05:11.600 --> 0:05:14.000 can just couse a fraction to make big waves and 0:05:14.000 --> 0:05:17.479 to develop Ali Baba. Investors are really warming up to this, 0:05:17.680 --> 0:05:20.160 as you can see with a performance overnight and just 0:05:20.200 --> 0:05:23.359 in general, the company has just really stabilized after years 0:05:23.360 --> 0:05:26.200 long of crackdown by the Chinese company. It's growing powerless 0:05:26.240 --> 0:05:28.760 and AI really shows that it has Bejing support and 0:05:28.800 --> 0:05:30.960 it's really helping galvanize a strong comeback. 0:05:31.480 --> 0:05:34.120 Isabell Lei on all things China, We thank you. Let's 0:05:34.200 --> 0:05:36.560 just take a check therefore. On sentiment across the board, 0:05:36.640 --> 0:05:39.760 Jordan Klein joins US managing director and TMT set to 0:05:39.760 --> 0:05:40.839 specialists at Mizuho. 0:05:40.960 --> 0:05:42.719 Your notes are a must read today. 0:05:42.760 --> 0:05:46.640 You call it survival mode, and ultimately AI related stocks 0:05:46.680 --> 0:05:48.360 are just getting hammered. 0:05:48.400 --> 0:05:49.560 Fundamentals don't matter. 0:05:51.480 --> 0:05:53.039 Yeah, that's right, Thanks for having me. 0:05:53.680 --> 0:05:58.000 We're in one of those nasty periods where they don't matter. 0:05:58.960 --> 0:06:01.240 They didn't really matter when the stocks were all going 0:06:01.320 --> 0:06:04.320 up and the momentum crowd was chasing these to new highs. 0:06:04.440 --> 0:06:08.279 Valuations didn't matter either, So it's a good reminder, although 0:06:08.320 --> 0:06:10.400 a painful one, that you know, what goes up can 0:06:10.480 --> 0:06:11.000 come down. 0:06:11.839 --> 0:06:13.520 I've covered tech a long time. 0:06:13.320 --> 0:06:16.520 And I think this is this does happen, especially when 0:06:16.560 --> 0:06:20.479 you have these new exciting growth narratives like AI reminds 0:06:20.480 --> 0:06:21.880 me a little bit of the dot com. 0:06:22.240 --> 0:06:24.320 I don't think this is anything like that, meaning it 0:06:24.360 --> 0:06:25.320 won't end that way. 0:06:25.520 --> 0:06:29.400 These companies are still reporting very good fundamentals and evaluations 0:06:29.400 --> 0:06:32.120 that are way lower than they were back, you know, twenty. 0:06:31.839 --> 0:06:32.600 Five years ago. 0:06:33.160 --> 0:06:35.760 But you know, it is crowded, it is a very 0:06:35.800 --> 0:06:39.400 popular trade and it's not working, so it doesn't really 0:06:39.440 --> 0:06:41.719 matter what the companies say. But eventually it will and 0:06:41.760 --> 0:06:43.960 I think that kind of comes back maybe later this 0:06:44.080 --> 0:06:44.799 year in the back. 0:06:44.640 --> 0:06:47.360 Half and here and now there's a lot of anxiety 0:06:47.360 --> 0:06:50.680 building about the competition in China. I spoke with Mike 0:06:51.240 --> 0:06:55.480 over at Iconic Capital yesterday, Mike Anders, who leads, of course, 0:06:55.560 --> 0:06:58.400 what is ultimately the family office of all tech billionaires, 0:06:58.680 --> 0:06:59.960 and this is what he had to say about d 0:07:00.080 --> 0:07:01.080 seeing just take a listen. 0:07:01.960 --> 0:07:07.240 I think there was both a surprise in how how 0:07:07.360 --> 0:07:10.000 quickly they were able to catch up, but I think 0:07:10.040 --> 0:07:13.280 there was also you know, a lot of I mean, 0:07:13.280 --> 0:07:16.640 the key takeaway was they can make this technology for 0:07:16.720 --> 0:07:19.920 cheaper than our models, and you know, this wake up 0:07:19.960 --> 0:07:24.440 call around efficiency versus you know, our route force spending. 0:07:25.160 --> 0:07:26.240 How much does that wake. 0:07:26.240 --> 0:07:29.960 Up call matter to some of these US based semiconductor 0:07:30.000 --> 0:07:31.240 names right now, Jordan. 0:07:33.560 --> 0:07:34.600 It's a very good question. 0:07:34.720 --> 0:07:36.680 I think it did you know a month ago or 0:07:36.680 --> 0:07:38.880 two months ago when we were at higher levels and 0:07:39.000 --> 0:07:41.440 these stocks and this was. 0:07:41.640 --> 0:07:43.600 Much more novel or a surprise. 0:07:43.680 --> 0:07:46.640 I think now as we get further along and we 0:07:46.720 --> 0:07:50.200 learn more about what China's doing and how they're training 0:07:50.240 --> 0:07:55.040 and creating models, you know, leveraging basically these US large 0:07:55.080 --> 0:07:59.480 language models at much you know, I guess faster pace 0:07:59.560 --> 0:08:04.000 and less expense. It is, you know, creating maybe the 0:08:04.080 --> 0:08:07.800 view that the growth and size down the road could 0:08:07.800 --> 0:08:10.880 be smaller for some of these hardware semi companies. But 0:08:10.920 --> 0:08:13.040 that being set on the flip side, it's creating I 0:08:13.040 --> 0:08:17.360 think more interest and excitement across internet and software because 0:08:17.520 --> 0:08:20.160 those are the kind of companies that could dramatically benefit 0:08:20.560 --> 0:08:23.920 from lower costs faster time to market. So it's kind 0:08:23.920 --> 0:08:27.320 of a double edged sword, but good for some, maybe 0:08:27.360 --> 0:08:28.320 not as good for others. 0:08:28.520 --> 0:08:31.120 And today I don't see these US. 0:08:30.920 --> 0:08:35.240 Big large cloud hyperscalers slowing or cutting back despite what's 0:08:35.280 --> 0:08:37.960 happening in China Jordan. 0:08:38.040 --> 0:08:41.440 That's exactly right, which makes me realize so many of 0:08:41.480 --> 0:08:45.720 these large companies that reported earnings last month mentioned that 0:08:45.760 --> 0:08:49.280 they were largely unconcerned with this deep seek fear that 0:08:49.320 --> 0:08:51.679 it would take away some of their demand. But all 0:08:51.720 --> 0:08:54.880 of a sudden, you're seeing more of a sensitivity. Is 0:08:54.920 --> 0:08:58.120 that going to persist every time China comes out with 0:08:58.240 --> 0:09:01.120 news about a new AI model? Well, what can kind 0:09:01.120 --> 0:09:04.160 of overcome some of that sensitivity that we're seeing. 0:09:05.920 --> 0:09:08.880 Yeah, I actually think the answer to that is it's 0:09:08.880 --> 0:09:12.080 not creating this shock factor with. 0:09:14.000 --> 0:09:17.480 You know, investors in terms of what it could mean. 0:09:17.559 --> 0:09:20.360 I think that you know, it's evolving, and that's kind 0:09:20.400 --> 0:09:22.480 of the dynamic of AI is that there's going to 0:09:22.520 --> 0:09:25.920 be news headlines and evolution that's going to be way 0:09:25.960 --> 0:09:29.120 faster than we've seen in other new areas of tech 0:09:29.160 --> 0:09:31.520 in the past, and investors are going to have to 0:09:31.600 --> 0:09:34.760 just deal with the volatility associated with that. But at 0:09:34.760 --> 0:09:36.839 the end of the day, you know, if you listen 0:09:36.880 --> 0:09:39.199 to what these companies are saying, and a lot of 0:09:39.280 --> 0:09:42.600 them have been speaking at Big Tech conferences this week. 0:09:42.920 --> 0:09:45.120 They're all kind of saying the same thing that, you know, 0:09:45.200 --> 0:09:46.440 we're full steam ahead. 0:09:46.840 --> 0:09:49.280 We see a lot of opportunity to monetize AI. 0:09:49.480 --> 0:09:52.440 It's very early days, and we can't air on the 0:09:52.520 --> 0:09:55.320 side of investing and developing and spending less. 0:09:56.440 --> 0:09:59.160 You know, we'd rather err on the side of spending more. 0:10:00.240 --> 0:10:00.320 So. 0:10:00.400 --> 0:10:02.800 I think that's the backdrop we're in. 0:10:03.080 --> 0:10:06.360 Unfortunately, it's just we're we're in a market dynamic that's 0:10:06.480 --> 0:10:10.120 basically punishing these companies no matter what they say. But 0:10:10.200 --> 0:10:12.400 eventually I think that changes and we get back to 0:10:12.640 --> 0:10:14.000 a more favorable backdrop. 0:10:15.280 --> 0:10:18.040 Let's also talk about how President Trump is starting to 0:10:18.520 --> 0:10:23.320 ramp up commentary and policies really around boosting domestic production 0:10:23.600 --> 0:10:26.680 and the companies that are perhaps benefiting from that, but 0:10:26.760 --> 0:10:29.880 also kind of seeing some pressure from other parts of 0:10:29.920 --> 0:10:34.000 the market. Do you think that his support for the industry, 0:10:34.080 --> 0:10:39.240 American companies and production could perhaps outset or outweigh some 0:10:39.320 --> 0:10:42.000 of this anxiety that we're seeing every time China comes 0:10:42.000 --> 0:10:43.119 out with a new advancement. 0:10:45.559 --> 0:10:48.800 Well, I think what we are seeing is that President 0:10:48.840 --> 0:10:52.840 Trump and his administration has taken a markedly different approach 0:10:52.880 --> 0:10:56.600 to AI than the Biden administration, and I think that's 0:10:56.800 --> 0:11:01.760 very good for these companies and the evolution in terms 0:11:01.760 --> 0:11:05.080 of this like arms race in AI, meaning he thinks 0:11:05.120 --> 0:11:09.240 this is critical technology. We have to be very supportive, 0:11:09.480 --> 0:11:13.520 and I think the restrictions are the controls against China 0:11:15.280 --> 0:11:19.120 or adversaries getting access to this is probably the biggest change, 0:11:19.160 --> 0:11:20.840 but I think that was going to happen no matter 0:11:20.880 --> 0:11:24.840 who was president in calling the shots. So my view, 0:11:24.840 --> 0:11:27.480 and I think investors view, is that he's going to 0:11:27.480 --> 0:11:30.280 continue to do whatever he can to support you know, 0:11:30.360 --> 0:11:34.000 America leading or sustaining a lead and winning in this 0:11:34.080 --> 0:11:38.560 AI race doesn't mean China and other countries can't catch up, 0:11:39.080 --> 0:11:41.800 but if anything, they're going to continue to spend more 0:11:41.800 --> 0:11:44.920 of their own money, both in Europe and China because 0:11:44.960 --> 0:11:47.199 they know now they can't rely on the United States. 0:11:47.280 --> 0:11:50.120 And in some areas that's going to help, like equipment 0:11:50.160 --> 0:11:52.480 companies that sell the tools and make these chips, because 0:11:52.679 --> 0:11:54.720 more companies and countries are going to need them. 0:11:55.280 --> 0:11:58.760 Jordan, I go back to your confidence for the second half. 0:11:59.040 --> 0:12:01.760 But in your note, you're saying this is a true 0:12:01.880 --> 0:12:04.640 crisis of confidence in the here and now. What gets 0:12:04.720 --> 0:12:06.439 us into that confidence in the second half. 0:12:08.240 --> 0:12:08.560 Yeah. 0:12:08.600 --> 0:12:12.080 I mean I wish I knew definitively what the catalyst 0:12:12.160 --> 0:12:14.520 or the event would be, and a lot of times 0:12:15.200 --> 0:12:18.000 you don't even know, but the stocks basically kind of 0:12:18.000 --> 0:12:21.560 tell you as they start to trade more positively on 0:12:22.000 --> 0:12:26.000 fundamentals that are constructive, and that's just a process. I 0:12:26.040 --> 0:12:28.439 personally think it's going to be more when we get 0:12:28.520 --> 0:12:31.600 middle of the year and in Vidia is seeing an 0:12:31.679 --> 0:12:36.880 accelerated ramp and their new Blackwell product that has multiple variants, 0:12:36.960 --> 0:12:39.480 you know, either underway or coming out later this year 0:12:39.960 --> 0:12:42.800 first quarter, you probably see that as their July earnings. 0:12:44.000 --> 0:12:47.000 But one of the things to remember is these stocks 0:12:47.040 --> 0:12:50.760 are very sensitive to earnings revisions. So when in Vidio 0:12:50.880 --> 0:12:53.720 was beating and raising by eight, nine, ten percent, the 0:12:53.760 --> 0:12:56.800 stock was legging up as more money came in. Lately, 0:12:56.840 --> 0:12:59.440 in the last several reports, they've beaten and raised, but 0:12:59.480 --> 0:13:02.120 it's been hoist and you're seeing that even with the 0:13:02.120 --> 0:13:04.480 mag seven, the beats and raises aren't as significant as 0:13:04.520 --> 0:13:07.240 they were. So if Nvidia kind of mid year, let's 0:13:07.240 --> 0:13:10.120 say in a quarter or two, aided by Blackwell, because 0:13:10.120 --> 0:13:12.319 the demands there they got to get the production, can 0:13:12.360 --> 0:13:15.560 start to beat and raise by larger amount. I think 0:13:15.600 --> 0:13:19.000 that causes again all these stocks to act better, but 0:13:19.120 --> 0:13:21.800 ultimately that has to happen until for these to kind 0:13:21.840 --> 0:13:23.280 of start to outperform again. 0:13:24.760 --> 0:13:26.920 Storting Kline from a zooh ho, thanks so much for 0:13:27.000 --> 0:13:31.120 joining us. We're also watching shares of Pinduoduo. They're down 0:13:31.280 --> 0:13:34.880 by about tenths three tenths of one percent. This is 0:13:34.920 --> 0:13:38.439 the parent company of Teamu. It's reporting a thirteen percent 0:13:38.600 --> 0:13:41.800 rise in sales for the December quarter. These are strong 0:13:41.880 --> 0:13:45.400 results attributed to Beijing's policy, though the shares are clearly 0:13:45.480 --> 0:13:50.120 reflecting some anxiety about how President Trump's tariffs on China 0:13:50.240 --> 0:13:54.040 could dent e commerce sales overall. Caroline, while said coming 0:13:54.120 --> 0:13:54.760 up well. 0:13:54.840 --> 0:13:56.520 Technique is a set to meet with President. 0:13:56.280 --> 0:13:58.040 Trump as his administration. 0:13:57.520 --> 0:14:00.720 Eyes a repeal of the Chips Act. This is blue 0:14:00.720 --> 0:14:10.400 my technology. 0:14:13.520 --> 0:14:16.280 President Trump is set to meet with top tech leaders 0:14:16.320 --> 0:14:20.320 next week to discuss trade policy and US manufacturing. According 0:14:20.360 --> 0:14:24.680 to sources, the CEOs of HP, Intel, IBM, and Qualcom 0:14:24.680 --> 0:14:28.000 have discussed meeting with the administration on Monday. For more, 0:14:28.040 --> 0:14:31.160 Bloomberg's Kaylee Lines joins us, Now, there's been a lot 0:14:31.200 --> 0:14:34.520 going on in Washington. What's the sentiment these tech CEOs 0:14:34.560 --> 0:14:36.720 are walking into and what could come out of these meetings. 0:14:36.760 --> 0:14:38.920 Well, clearly there are a number of things they likely 0:14:38.920 --> 0:14:40.920 want to discuss with the President. I would note we 0:14:41.040 --> 0:14:43.640 haven't gotten confirmation from the White House this is happening, 0:14:43.680 --> 0:14:46.160 and most of the companies aren't confirming either. HP, though, 0:14:46.240 --> 0:14:48.360 has said that their plan is to be there on 0:14:48.440 --> 0:14:49.920 Monday and that one of the things they want to 0:14:49.920 --> 0:14:52.640 discuss is trade policy. That is likely true for all 0:14:52.640 --> 0:14:55.160 of these companies, many of which have exposure to countries 0:14:55.160 --> 0:14:58.120 that are now facing higher tariffs. China, for example, is 0:14:58.120 --> 0:15:01.880 a big supplier share for company like Intel or HP 0:15:02.040 --> 0:15:04.520 for example, and that has twenty percent tariffs on it. 0:15:04.600 --> 0:15:06.840 Now there's a massive question that we have gotten news 0:15:06.840 --> 0:15:10.160 from Howard Lutnik today about Canada and tariffs and USMCA 0:15:10.240 --> 0:15:12.880 compliance perhaps having tariffs delayed for a month, but only 0:15:12.920 --> 0:15:16.040 a month till April second, when reciprocal tariffs could kick in. 0:15:16.080 --> 0:15:19.720 So that has implications for vast networks of supply chains 0:15:19.720 --> 0:15:21.960 for these companies. The other thing likely on the agenda 0:15:22.000 --> 0:15:24.360 as well, considering the remarks we got from the President 0:15:24.680 --> 0:15:27.120 in his ajoint addressed to a Joint Session of Congress, 0:15:27.120 --> 0:15:29.680 this week about repealing the Chips Act is whether or 0:15:29.720 --> 0:15:31.560 not that is actually a serious effort on the part 0:15:31.560 --> 0:15:33.800 of this administration. As a company like Intel as well 0:15:33.840 --> 0:15:36.720 as TSMC have made massive investment pledges in the United 0:15:36.760 --> 0:15:39.720 States due to that funding that was provided by Congress. 0:15:39.800 --> 0:15:42.080 I will just note though, that what reaction we got 0:15:42.120 --> 0:15:45.120 from Congress yesterday does indicate it's not likely a full 0:15:45.160 --> 0:15:47.520 repeal would happen. He would run into issues with the 0:15:47.520 --> 0:15:50.040 filibuster and the Senate is even sub Senate Republicans like 0:15:50.080 --> 0:15:52.520 the Finance Chair Mike Crapo, have suggested while they're open 0:15:52.520 --> 0:15:55.320 to reform of that legislation, they don't want to see 0:15:55.320 --> 0:15:56.280 it pulled back entirely. 0:15:56.560 --> 0:15:59.000 What's interesting is whose names aren't that You would have 0:15:59.000 --> 0:16:01.000 thought Nvidia is the key one in the line of 0:16:01.000 --> 0:16:02.120 fire when it comes to China. 0:16:03.560 --> 0:16:06.200 Well, that's true, especially when we consider another element of 0:16:06.600 --> 0:16:09.800 economic state craft, if you well, Caroline, which is export controls. 0:16:09.840 --> 0:16:12.640 That is another factor for these companies. It's not just 0:16:12.680 --> 0:16:15.040 about the cost of the things they may need to import, 0:16:15.080 --> 0:16:17.880 but what kind of products they make and technology they 0:16:17.920 --> 0:16:20.720 are actually able to export. That is another open question here. 0:16:20.720 --> 0:16:23.320 And while Jensen Wang may not be among those expected 0:16:23.360 --> 0:16:25.720 at the White House on Monday. He has already met 0:16:25.720 --> 0:16:28.400 with President Trump over the course of this administration, as 0:16:28.440 --> 0:16:31.720 have other tech executives who have similar vulnerabilities. Here you 0:16:31.760 --> 0:16:34.120 can think of Tim Cook for Apple and the like. 0:16:34.640 --> 0:16:37.800 So obviously they're all making the rounds as they try 0:16:37.800 --> 0:16:39.600 to get on the right side of this White House. 0:16:39.760 --> 0:16:43.080 That's Bloomberg's Kaylee Lines, thanks so much for joining us. 0:16:43.080 --> 0:16:45.720 So first, it's kind bill aimed at keeping kids and 0:16:45.800 --> 0:16:47.360 teens safe online, and. 0:16:47.280 --> 0:16:49.800 It's headed to the desk of Utah Governor Spencer Cox. 0:16:50.040 --> 0:16:51.440 The measure would require. 0:16:51.240 --> 0:16:54.760 App stores to verify users ages and require parental permission 0:16:54.760 --> 0:16:58.280 for those under eighteen. Nicole Lopez, global director of Youth 0:16:58.320 --> 0:16:59.720 Safety Policy for Meta. 0:16:59.520 --> 0:17:00.280 Joins US now. 0:17:00.320 --> 0:17:03.600 And what's interesting is ultimately for the responsibility shifts from 0:17:03.600 --> 0:17:06.159 the social media platforms such as Meta Meta over to 0:17:06.520 --> 0:17:09.080 Apple and to Google. Do you have sympathy though for 0:17:09.119 --> 0:17:11.560 Apple's argument here that they're going to have to take 0:17:11.640 --> 0:17:15.919 too much data to the amount that they really need. Ultimately, 0:17:16.160 --> 0:17:18.840 you don't need data restrictions on every app, only some 0:17:18.920 --> 0:17:19.200 of them. 0:17:20.840 --> 0:17:26.720 Look Apple's messaging last week and their solution is a 0:17:26.760 --> 0:17:29.840 positive first step, but it really doesn't go far enough 0:17:29.920 --> 0:17:33.959 in that first its protections are optional, they're not automatic, 0:17:34.359 --> 0:17:37.400 and second, the protections only apply with the team's approval, 0:17:37.560 --> 0:17:42.120 not the parents, and parents overwhelmingly tell us that they 0:17:42.160 --> 0:17:44.760 want to have the final say in terms of verifying 0:17:45.040 --> 0:17:48.639 their kids age and also having concent over any app 0:17:48.680 --> 0:17:51.080 that their team wants to download. And so, frankly, it 0:17:51.119 --> 0:17:55.480 isn't the right solution here. It just doesn't go far enough, Nicole. 0:17:55.560 --> 0:17:58.800 What else is Meta doing in the event that, like 0:17:58.880 --> 0:18:02.200 you said, this measure doesn't go far enough and people 0:18:02.280 --> 0:18:05.639 find loopholes around it. What can be found on Meta 0:18:05.760 --> 0:18:07.399 that can perhaps catch some of this? 0:18:08.400 --> 0:18:12.600 Yeah, Meta has invested millions and millions billions of dollars 0:18:13.119 --> 0:18:15.920 into just that. We want to create safe and age 0:18:15.920 --> 0:18:20.840 appropriate experiences and we're not abandoning, nor are other apps, 0:18:20.880 --> 0:18:23.800 any of the age assurance methods that we have in place, 0:18:24.359 --> 0:18:27.320 and so we're going to continue to invest in AI 0:18:27.520 --> 0:18:30.600 and age verification checkpoints because we do know the reality 0:18:30.800 --> 0:18:34.760 is that people will try to bypass the app store solution. 0:18:35.520 --> 0:18:37.720 So there will be those age liers, but there'll be 0:18:37.880 --> 0:18:39.040 fewer of them. 0:18:39.240 --> 0:18:43.200 And app store solution for Utah, but there's loads of 0:18:43.240 --> 0:18:46.439 other states in fact, also looking at these sorts of laws. 0:18:46.560 --> 0:18:48.120 How quickly might that unfold? 0:18:48.200 --> 0:18:48.520 Nicole? 0:18:49.520 --> 0:18:51.480 It's unclear how quickly it will unfold, But what I 0:18:51.520 --> 0:18:55.919 can say is this, we applaud Utah for taking this 0:18:56.040 --> 0:19:00.280 first step. There's sweeping legislation. It's been introduced by even 0:19:00.359 --> 0:19:04.360 over a quarter of the states, and it's across party lines. 0:19:04.640 --> 0:19:09.080 You have Alabama and Kentucky just last week introducing similar legislation. 0:19:09.560 --> 0:19:13.680 You have New Mexico, you have Alaska and other states 0:19:13.720 --> 0:19:16.840 that are also doing this. So this is really picking 0:19:16.920 --> 0:19:21.040 up momentum because again, this is what parents want, and 0:19:21.080 --> 0:19:23.200 so we're excited about it, and we also hope that 0:19:23.280 --> 0:19:24.880 Congress you know, follows suit. 0:19:25.200 --> 0:19:26.320 Yeah, take us there. 0:19:26.520 --> 0:19:29.679 Why not a federal rule here rather than the patchwork 0:19:29.680 --> 0:19:30.440 a state by state. 0:19:31.520 --> 0:19:34.160 Well, we think that the states are listening to parents, 0:19:34.200 --> 0:19:36.639 So we are excited about this. You know, if the 0:19:36.680 --> 0:19:39.560 federal government picks it up as well, we think it 0:19:39.600 --> 0:19:43.119 would be a great, great solution. So we're excited to 0:19:43.160 --> 0:19:45.520 see what develops. It's unclear at this point though, how 0:19:45.560 --> 0:19:46.440 quickly things move. 0:19:47.720 --> 0:19:50.000 Well, one thing that is clear is that CEO Mark 0:19:50.080 --> 0:19:53.399