WEBVTT - Big Tech on Deck and Election Impact Across Assets 0:00:01.639 --> 0:00:05.960 From Mahart where Innovation, Money and power Collie in Silicon 0:00:06.040 --> 0:00:06.920 Vallet NBN. 0:00:07.280 --> 0:00:11.800 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.320 --> 0:00:27.680 Live from New York and San Francisco. This is Bloomberg 0:00:27.720 --> 0:00:31.760 Technology coming up, Big Tech on Deck, Alphabet, AMD, Reddit 0:00:31.760 --> 0:00:34.000 after the bell, will talk you through what to. 0:00:34.000 --> 0:00:37.159 Expect and so Fi just came out with their own earnings. 0:00:37.159 --> 0:00:39.440 This morning, We're gonna speak with the ceo. 0:00:39.400 --> 0:00:42.559 OUs shares of Trump media surge again getting briefly suspended 0:00:42.600 --> 0:00:46.640 amid the volatility. We discussed the election impact across assets, 0:00:46.680 --> 0:00:49.760 but first we check on the markets and I daral 0:00:49.840 --> 0:00:53.360 into what some say is indeed a Trump trade. Bitcoin 0:00:53.520 --> 0:00:55.680 powering ever higher, up another three percent. In fact, we're 0:00:55.680 --> 0:00:57.640 training at the highest since March of this year. What 0:00:57.680 --> 0:01:00.160 happened in March of this year, a record high. We 0:01:00.280 --> 0:01:03.360 clip the seventy four thousand number. Of course, we hit 0:01:03.480 --> 0:01:06.160 just below that back in March of twenty twenty four. 0:01:06.319 --> 0:01:08.559 We're up three percent, and all of this being thought 0:01:08.600 --> 0:01:12.160 of is ultimately risk on many feeling that potentially this 0:01:12.200 --> 0:01:15.440 is a signal of a Trump trade, but also option signaling. Look, 0:01:15.440 --> 0:01:17.440 it's going to eighty thousand in November, no matter what 0:01:17.520 --> 0:01:18.440 the election outcome. 0:01:18.520 --> 0:01:19.520 But and you're looking at the. 0:01:19.440 --> 0:01:22.160 Micro yeah, there's a lot of headlines that's hit in 0:01:22.160 --> 0:01:24.119 the last hour or so. Tesla has seen a lot 0:01:24.120 --> 0:01:27.800 of volatility. Elon Musk, speaking in Saudi Arabia at FII 0:01:28.120 --> 0:01:30.120 and on the Trump trade, he said that actually, if 0:01:30.160 --> 0:01:33.560 Trump gets to office, he's more optimistic his lofty goals 0:01:33.560 --> 0:01:35.640 for SpaceX and Tesla will happen. 0:01:35.680 --> 0:01:37.280 We'll get to that later in the program. 0:01:37.400 --> 0:01:41.319 PayPal gave us guidance for the fourth quarter that missed expectations. 0:01:41.560 --> 0:01:43.240 We will dig into that later in the show. The 0:01:43.240 --> 0:01:45.880 stock on track for its biggest drop since February, and 0:01:46.120 --> 0:01:48.400 big tech in ernest right, I think Alphabet, the parent 0:01:48.440 --> 0:01:50.720 of Google, is the main focus. It's not just the 0:01:50.720 --> 0:01:52.400 big AI name. But if you think about it in 0:01:52.440 --> 0:01:55.960 the stock context, Caro, it's been disappointing. 0:01:55.200 --> 0:01:56.200 For many investors. 0:01:56.360 --> 0:01:58.800 They want signs that all the money being spent on 0:01:58.840 --> 0:02:01.520 AI will translate that growth, particularly in cloud. 0:02:01.640 --> 0:02:03.000 We should probably talk about that. 0:02:03.120 --> 0:02:05.600 We should, and someone's been writing about exactly that, as 0:02:05.680 --> 0:02:07.600 well as all the companies of course that are set 0:02:07.640 --> 0:02:11.320 to report Reddit, AMD SNAP. We think of Google though 0:02:11.360 --> 0:02:13.880 in particular as ed was laying out there, maybe just 0:02:13.960 --> 0:02:17.079 trailing the magnificent seven piers because investors are trying to 0:02:17.120 --> 0:02:19.800 struggle to price in antitrust risks and. 0:02:19.480 --> 0:02:20.960 Many others that confront the company. 0:02:21.440 --> 0:02:24.280 Rand Rastelca is the guy who's been across this and 0:02:24.680 --> 0:02:28.080 that there has been the sideways movement of Alphabet's shares. 0:02:28.680 --> 0:02:31.480 How are people trying to think about any rosiness from 0:02:31.480 --> 0:02:33.720 the earnings dialing into the anti trust picture? 0:02:34.960 --> 0:02:36.800 Good morning, Thanks for having me so, Yeah, those are 0:02:36.800 --> 0:02:39.399 the two major issues people are focused on right now. 0:02:39.440 --> 0:02:42.720 Most everyone I talked to remains pretty positive on Alphabet 0:02:42.760 --> 0:02:45.320 as far as its fundamentals go. It's been showing improved 0:02:45.360 --> 0:02:49.440 results in its cloud business. Advertising seems to be fairly strong, 0:02:49.440 --> 0:02:51.600 which is of course key for the company search business. 0:02:51.639 --> 0:02:54.760 But you do have the anti trust the regulatory picture. 0:02:54.840 --> 0:02:58.680 There's been some rulings against the company and people aren't 0:02:58.720 --> 0:03:01.359 quite yet sure how to you know, price this impact, 0:03:01.360 --> 0:03:03.919 How severe is any punishment going to be? How long 0:03:04.040 --> 0:03:05.960 is this going to remain in overhang on the shares? 0:03:06.160 --> 0:03:08.800 What is the ultimate impact here? These are very unclear 0:03:08.880 --> 0:03:10.800 right now, and that is something that is you know, 0:03:10.840 --> 0:03:12.920 weighing on the stock right now. And kind of preventing 0:03:12.960 --> 0:03:14.960 it from participating in the games that you've seen in 0:03:15.000 --> 0:03:16.200 the other Max seven. 0:03:15.960 --> 0:03:19.560 Stocks weighing on the stock and it could weigh at 0:03:19.600 --> 0:03:20.400 the index level. 0:03:20.480 --> 0:03:21.639 Right. You were writing over the. 0:03:21.560 --> 0:03:26.080 Weekend about how profit expectations for those MAG seven names 0:03:26.080 --> 0:03:29.480 reporting this week are still way beyond the S and 0:03:29.520 --> 0:03:31.720 P five hundred overall, but I think we're on track 0:03:31.760 --> 0:03:35.240 for our basically lowest quarter of VPS expansion in six 0:03:35.560 --> 0:03:36.880 quarters or something like that. 0:03:37.240 --> 0:03:39.520 How high is the bar? Like, how braced are we 0:03:39.640 --> 0:03:42.920 for this week? Well, it's really a company by company 0:03:43.000 --> 0:03:45.280 kind of thing. In general, Like you said, earnings growth 0:03:45.320 --> 0:03:48.240 for the Max seven is extremely strong, much stronger than 0:03:48.280 --> 0:03:51.840 the overall market. But we have seen a deceleration in growth. 0:03:52.160 --> 0:03:54.480 And given how much these stocks have moved up this year, 0:03:54.560 --> 0:03:58.320 you have some of the major index components, Apple, Microsoft, 0:03:58.360 --> 0:04:01.120 and so forth. These names are prett expensive rolled up 0:04:01.120 --> 0:04:03.320 to their history, which does suggest there is a high 0:04:03.320 --> 0:04:06.800 bar here. You have slowing growth, high multiples that leaves 0:04:06.880 --> 0:04:07.960 limited room for error. 0:04:09.560 --> 0:04:11.640 All right, Bloombo's Ryan for Selica, You've got to check 0:04:11.640 --> 0:04:15.040 out his reporting before, during, and after the big tech 0:04:15.040 --> 0:04:15.600 earnings beat. 0:04:15.640 --> 0:04:18.159 Thank you so much. Let's keep a conversation going with Jay. 0:04:18.080 --> 0:04:21.600 Jacobs, head of Thematic and Active ETF at Black Rock, 0:04:21.920 --> 0:04:25.159 which manages an astonishing eleven point five trillion dollars in 0:04:25.200 --> 0:04:29.839 total for its clients, And same question to you. Alphabet's 0:04:29.880 --> 0:04:32.280 one name, But if you think about the broad basket 0:04:32.320 --> 0:04:36.200 of AI, hyperscaler, software, hardware, chip names that you track, 0:04:36.800 --> 0:04:39.400 how braced are you for this week starting with Google? 0:04:41.360 --> 0:04:44.400 Well, we're looking much further than just individual names. We 0:04:44.480 --> 0:04:48.880 have identified artificial intelligence and digital disruption is a multi year, 0:04:48.960 --> 0:04:51.520 if not multi decade, mega force that's going to have 0:04:51.560 --> 0:04:54.680 a tremendous impact on the economy and markets. So while 0:04:54.680 --> 0:04:57.919 earnings might have some directional information on how some of 0:04:57.920 --> 0:05:00.680 this investment from hyperscalers are going with the adoption of 0:05:00.760 --> 0:05:04.360 artificial intelligence, we're really looking three, five, ten years out 0:05:04.400 --> 0:05:07.839 to see the landscape shifting impact of artificial intelligence on 0:05:07.880 --> 0:05:08.680 the economy. 0:05:09.560 --> 0:05:11.560 Jay Caro and I like looking to the horizon as 0:05:11.640 --> 0:05:15.280 much as anyone else. But when the hyperscalers talk about CAPEX, 0:05:15.520 --> 0:05:18.040 the market responds in all sorts of ways. You must 0:05:18.040 --> 0:05:20.440 be a little bit excited or a little bit nervous 0:05:20.640 --> 0:05:22.080 about the next twenty four hours. 0:05:23.839 --> 0:05:26.039 Well, I think What will be interesting about all of 0:05:26.040 --> 0:05:28.520 this CAPEX, which could be almost a quarter of a 0:05:28.600 --> 0:05:33.799 trillion dollars, is that money is being spent on semiconductor companies. 0:05:33.920 --> 0:05:37.480 It's being spent on data centers, it's being spent on 0:05:37.640 --> 0:05:41.560 power infrastructure, and in some of our actively managed strategies 0:05:41.600 --> 0:05:45.440 like BAI, which just launched a few days ago. It's 0:05:45.480 --> 0:05:49.320 really looking at that infrastructure layer of artificial intelligence, where 0:05:49.360 --> 0:05:52.920 all that CAPEX money is being spent to take advantage 0:05:52.960 --> 0:05:55.839 of the revenue opportunities that we see today in artificial intelligence. 0:05:56.360 --> 0:06:00.680 It's interesting over in Saudi Arabia, many tech leaders, finance 0:06:00.800 --> 0:06:03.560 leaders are speaking Massa Yoshisan, one of them talking about 0:06:03.560 --> 0:06:05.960 how Nvidia is undervalued. 0:06:06.360 --> 0:06:07.800 Now, Jay, I know you've thought a lot. 0:06:07.680 --> 0:06:11.080 About ultimately the investment in the picks and shovels. Are 0:06:11.080 --> 0:06:13.359 we too obsessed with one or two names? Do we 0:06:13.360 --> 0:06:14.200 need to broaden out? 0:06:15.960 --> 0:06:16.600 I think we are. 0:06:16.680 --> 0:06:18.800 This is a much bigger story than just the mag 0:06:18.920 --> 0:06:21.480 seven and just a handful of names and artificial intelligence. 0:06:22.000 --> 0:06:25.120 We really look across the entire AI value chain or 0:06:25.120 --> 0:06:28.160 the AI tech stack to find opportunities. I would really 0:06:28.200 --> 0:06:31.680 bucket this in three layers. There's the AI infrastructure layer 0:06:31.680 --> 0:06:34.000 that I just mentioned. That's about the semiconductors, that's about 0:06:34.040 --> 0:06:37.320 the power infrastructure, It's about the data centers that are 0:06:37.360 --> 0:06:41.520 providing that physical backbones artificial intelligence. The mid layer has 0:06:41.560 --> 0:06:44.000 also gotten a fair amount of attention. That's where the models, 0:06:44.040 --> 0:06:45.840 these large language models live, where a lot of the 0:06:45.880 --> 0:06:48.960 proprietary data lives. But then on top of that is 0:06:49.000 --> 0:06:51.520 the applications layer, and this is where we could see 0:06:51.520 --> 0:06:54.279 some of the most significant growth over the long term, 0:06:54.279 --> 0:06:56.839 which is really what are the companies that are embracing 0:06:56.960 --> 0:07:00.480 artificial intelligence to build revolutionary products and Apple cations. 0:07:00.839 --> 0:07:01.760 And I think if you. 0:07:01.800 --> 0:07:05.039 Look across that AI tech stack, there's a lot of 0:07:05.080 --> 0:07:07.880 opportunity that goes far beyond just the mag seven and 0:07:07.880 --> 0:07:10.520 that's why we believe active management can be really powerful 0:07:10.520 --> 0:07:13.440 and artificial intelligence to pick and choose those opportunities. 0:07:13.920 --> 0:07:16.360 Let's talk there for about some of the latest CTF 0:07:16.440 --> 0:07:19.800 you've launched and those within them to give the exposure. 0:07:20.360 --> 0:07:23.360 How broad are the names and how geographically broad are 0:07:23.400 --> 0:07:23.760 they as well? 0:07:23.800 --> 0:07:24.720 Is it all about the US? 0:07:26.280 --> 0:07:28.440 So if you look at BAI, which is our Artificial 0:07:28.440 --> 0:07:33.040 Intelligence and Technology Actively Managed GTF, it is largely focused 0:07:33.120 --> 0:07:36.200 on the digital infrastructure layer right now, that's where we 0:07:36.240 --> 0:07:38.840 see some of the most immediate opportunity because of all 0:07:38.840 --> 0:07:41.760 of that capex spending by the hyperscalers. That's where the 0:07:41.760 --> 0:07:44.160 flows of dollars are going today and therefore kind of 0:07:44.160 --> 0:07:48.040 the most concrete part of the artificial intelligence opportunity. But 0:07:48.160 --> 0:07:50.960 it is a highly concentrated portfolio. It really only has 0:07:51.000 --> 0:07:54.200 about thirty four companies in it. That is our portfolio 0:07:54.280 --> 0:07:57.160 managers really taking high conviction bets on which parts of 0:07:57.200 --> 0:07:57.920 AI are going to. 0:07:57.880 --> 0:08:02.760 Succeed, and so by compared Garrison, TEK is broad is 0:08:02.880 --> 0:08:06.440 still right because you have the full spectrum of software 0:08:06.480 --> 0:08:09.520 through too hardware, even the semiconductor names in there. What 0:08:09.520 --> 0:08:12.320 I always think about JAY is like, take the semiconductor 0:08:12.360 --> 0:08:17.239 space right in the context of AI accelerators, Nvidia, Intel 0:08:17.240 --> 0:08:19.800 and am D all compete with one another, but they 0:08:19.840 --> 0:08:23.600 will see this very expansive and enduring market. Why is 0:08:23.680 --> 0:08:26.160 the function of an ETF important to get the full 0:08:26.160 --> 0:08:26.920 benefit of that? 0:08:29.160 --> 0:08:31.680 Well, because this is again this says about an entire 0:08:31.800 --> 0:08:35.199 value chain of opportunity. On one hand, you want high 0:08:35.240 --> 0:08:37.160 conviction picks and the names that are going to win, 0:08:37.240 --> 0:08:39.480 but at the same time, it's not about one or 0:08:39.480 --> 0:08:42.400 two stocks in artificial intelligence, we believe the whole basket 0:08:42.440 --> 0:08:44.920 of stocks is going to benefit in the ETF like 0:08:45.000 --> 0:08:47.400 BAI delivers that very efficiently to investors. 0:08:47.720 --> 0:08:50.760 Jay, you've spelled out your long term viewpoint. But in 0:08:50.800 --> 0:08:52.920 the short term we have earnings. We also have an 0:08:52.920 --> 0:08:55.360 election in the US. From your perspective, is that a 0:08:55.440 --> 0:08:58.319 moment to actively invest to change up the portfolio. 0:09:00.120 --> 0:09:03.960 It can certainly introduce some volatility or uncertainty into the portfolio. 0:09:04.240 --> 0:09:07.839 But again, if we're looking thematically at artificial intelligence, this 0:09:07.920 --> 0:09:09.839 is an area where we see, you know, this is 0:09:10.240 --> 0:09:12.080 longer than an election. This is longer than just the 0:09:12.120 --> 0:09:13.920 next four years. Even this is something that's going to 0:09:13.920 --> 0:09:17.000 play out over multiple decades. So near term volatility is 0:09:17.040 --> 0:09:20.000 really less important to thematic investors than what is the 0:09:20.040 --> 0:09:23.240 trajectory of artificial intelligence over the next several years, which 0:09:23.240 --> 0:09:24.360 we remain very bolish on. 0:09:24.960 --> 0:09:28.080 J Jacobs moaning British heado thematic and active ETFs at 0:09:28.080 --> 0:09:30.640 black Plock, We thank you. Coming up, we'll take a 0:09:30.679 --> 0:09:34.200 look at the volatility around Trump media shares, so push 0:09:34.240 --> 0:09:37.120 ever higher this morning. The details and where you're looking 0:09:37.120 --> 0:09:38.280 at well. 0:09:38.280 --> 0:09:42.040 Elon Musk participated in a surprise conversation at the Future 0:09:42.080 --> 0:09:45.640 Investment Initiative taking place in Riard to discuss the future 0:09:45.679 --> 0:09:49.600 of AI solar energy, but also why he thinks AMA's 0:09:49.760 --> 0:09:53.600 launch for Starship is more likely under a Trump presidency. 0:09:53.600 --> 0:09:54.199 Listen to this. 0:09:55.360 --> 0:09:58.720 I feel more optimistic about it with a Trump White 0:09:58.720 --> 0:10:03.600 House and an point House because the biggest impedimental progress 0:10:03.600 --> 0:10:08.800 that we're experiencing is regulatory is over regulation. 0:10:20.360 --> 0:10:23.680 Shares of Trump Media, the operator of the True Social site, 0:10:23.720 --> 0:10:26.400 were suspended earlier today after they rose as much as 0:10:26.440 --> 0:10:29.160 twenty one percent in pre market trading. 0:10:29.280 --> 0:10:33.000 Trading later resumed. What's going on, Let's. 0:10:32.840 --> 0:10:34.960 Bring in Bloomberg's baby Lipshaltz. I think we get this 0:10:35.040 --> 0:10:38.480 idea that there's this thing called the Trump Trade and 0:10:38.520 --> 0:10:42.600 that DJT because it's the parent company of Trump's social 0:10:42.640 --> 0:10:45.840 media platform, Truth Social, is a part of that. But 0:10:46.280 --> 0:10:49.560 explain the specificity of what happened this morning. I don't 0:10:49.559 --> 0:10:49.920 get it. 0:10:50.960 --> 0:10:53.360 Well, nothing makes sense and meanwhay. 0:10:53.600 --> 0:10:57.560 So you have to go in understanding and acknowledging that 0:10:57.640 --> 0:11:00.319 the thing with Trump Media shares, given the fact that 0:11:00.400 --> 0:11:03.680 Donald Trump owns more about sixty percent of the stock, 0:11:03.840 --> 0:11:06.960 is that it typically trades closely with the betting odds. 0:11:07.000 --> 0:11:09.520 So we've been tracking a number of betting markets that 0:11:09.600 --> 0:11:11.560 have been shifting up into the right for Donald J. 0:11:11.679 --> 0:11:13.440 Trump to return to the White House. 0:11:13.480 --> 0:11:16.319 What we saw today with some of those volatility halls 0:11:16.360 --> 0:11:18.480 by Mike count it was about five of them to 0:11:18.600 --> 0:11:22.440 the up and downside is just simply an overwhelming amount 0:11:22.480 --> 0:11:25.880 of activity and volatility. We saw volumes about six times 0:11:25.920 --> 0:11:28.240 of what's normal in the first hour. So when you 0:11:28.280 --> 0:11:31.360 see investors, whether that's retail traders who are pushing their 0:11:31.400 --> 0:11:34.720 investments on things like Reddit or True Social itself, or 0:11:34.800 --> 0:11:37.920 Wall Street professionals or even just auctions traders, that's what 0:11:38.000 --> 0:11:40.320 we can see with some of these wild swings to 0:11:40.400 --> 0:11:42.920 the up and downside, and just looking at today, it's 0:11:42.960 --> 0:11:45.360 really emblematic of what we've been tracking. When you even 0:11:45.400 --> 0:11:47.959 look back to when this spec deal was announced back 0:11:48.000 --> 0:11:50.199 in October twenty twenty one, it. 0:11:50.160 --> 0:11:52.960 Has generally been up into the right. Even if there 0:11:53.040 --> 0:11:54.640 is volatility on an industry basis. 0:11:54.679 --> 0:11:57.200 What two hundred and seventy two percent at least was 0:11:57.200 --> 0:12:00.440 the number we counted yesterday over the last five trading weeks, 0:12:00.679 --> 0:12:02.760 is it really the eye of the storm when it 0:12:02.760 --> 0:12:04.760 comes to the so called Trump trade. What are the 0:12:04.920 --> 0:12:06.160 names have been evolved in? 0:12:06.240 --> 0:12:09.080 Meanwhile, it's the biggest one to keep an eye on, 0:12:09.120 --> 0:12:11.680 and it is really the most indicative. Obviously, it trades 0:12:11.800 --> 0:12:15.840 under DJT. That's Trump's initials, so the ticker symbol is 0:12:15.840 --> 0:12:19.440 actually that closely tied in a line with the former president. 0:12:19.679 --> 0:12:21.240 We also keep an eye on Rumble. 0:12:21.280 --> 0:12:25.720 They're a Peter telbacked video platform, typically skewing towards a 0:12:25.720 --> 0:12:29.040 more conservative audience, trying to also rally against big tech. 0:12:29.160 --> 0:12:32.000 The company is also in partnerships with Trump Media itself. 0:12:32.040 --> 0:12:34.360 We keep an eye on Funware, which really seems to 0:12:34.400 --> 0:12:36.080 be more of, at least when I talk to investors, 0:12:36.080 --> 0:12:39.000 more of a gambling mechanism. It was associated with some 0:12:39.080 --> 0:12:41.640 of the past Trump campaigns, though doesn't appear to be 0:12:41.880 --> 0:12:44.440 tied towards the twenty twenty four re election campaign, but 0:12:44.679 --> 0:12:47.800 that also has gotten swept up in the shift as well. 0:12:47.960 --> 0:12:50.400 Bailey, you wrote a story on October twenty fifth, which 0:12:50.440 --> 0:12:56.040 I appreciate seems like an eternity ago now that basically, 0:12:56.360 --> 0:13:00.000 if Trump wins, it's hard to see what happens next 0:13:00.160 --> 0:13:03.360 with True Social and DJT. But I think you were 0:13:03.400 --> 0:13:07.040 talking more about its business, Like, what do we know 0:13:07.080 --> 0:13:08.760 about this company as a company. 0:13:09.800 --> 0:13:14.120 It operates and owns True Social, an X lookalike platform 0:13:14.240 --> 0:13:17.960 that is one of the many kind of places that 0:13:18.040 --> 0:13:19.280 Donald Trump will post. 0:13:19.920 --> 0:13:21.599 We do know ed in the first. 0:13:21.320 --> 0:13:24.880 Half they reported just about one point six million dollars 0:13:24.920 --> 0:13:28.960 in sales, so not profitable. One point six million in 0:13:29.040 --> 0:13:31.800 sales or revenue is a drop in the bucket relative 0:13:32.000 --> 0:13:35.480 to its multi billion dollar market evaluation. It has struggled 0:13:35.480 --> 0:13:38.120 to retain users. We've seen that with third party apps. 0:13:38.120 --> 0:13:41.600 The company doesn't actually disclose those metrics. We will be 0:13:41.640 --> 0:13:44.760 closely keeping an eye on their third quarter results, which 0:13:44.920 --> 0:13:47.520 should be coming in the next few weeks, just in 0:13:47.640 --> 0:13:50.160 terms of what activity or at least what ad sales 0:13:50.200 --> 0:13:52.480 look like going into the election. But when I talk 0:13:52.520 --> 0:13:54.800 to some skeptics that they really call out the fact 0:13:54.800 --> 0:13:58.000 that all eyes right now are on Trump's re election campaign. 0:13:58.160 --> 0:14:01.080 So if the company is struggling to get anywhere near 0:14:01.120 --> 0:14:03.640 training a profit and only had one point six million 0:14:03.679 --> 0:14:06.640 dollars in first half sales, the question going forward is 0:14:06.679 --> 0:14:07.720 how does that actually grow? 0:14:08.200 --> 0:14:10.640 Bailey Lipshaw's we appreciate it, thank you. 0:14:11.240 --> 0:14:14.520 Let's stick with politics because Jeff Bezos defended The Washington 0:14:14.559 --> 0:14:18.480 Post's decision to stop endorsing presidential candidates, saying there was 0:14:18.559 --> 0:14:21.600 a quote credibility gap afflicting the media industry and that 0:14:21.840 --> 0:14:25.240 endorsing a candidate would create a perception of bias, and 0:14:25.400 --> 0:14:27.800 the move by the billionaire owner of The Washington Post 0:14:27.840 --> 0:14:31.280 prompted as many as two hundred thousand subscribers to cancel. 0:14:31.560 --> 0:14:35.040 That's according to MPR. Bloomberg's Mike Shepherd joins us to discuss, 0:14:35.120 --> 0:14:37.720 and Mike, I know you have a history what the 0:14:37.800 --> 0:14:40.840 Washington Post yourself, and just take us back in history. 0:14:41.160 --> 0:14:44.680 How long have they been saying that they support certain candidates. 0:14:45.960 --> 0:14:47.240 Well, first my own history. 0:14:47.280 --> 0:14:49.720 I did work at the Washington Post for twenty two 0:14:49.840 --> 0:14:53.160 years before joining Bloomberg in twenty eleven. So we do 0:14:53.320 --> 0:14:55.920 have some long standing ties to that newsroom and a 0:14:55.960 --> 0:14:59.120 lot of the good people that work there. And the 0:14:59.280 --> 0:15:02.280 history that the moss with endorsing candidates goes all the 0:15:02.280 --> 0:15:05.000 way back to when Jimmy Carter ran for the presidency. 0:15:05.320 --> 0:15:07.880 So there is a history and a tradition. And one 0:15:07.880 --> 0:15:10.440 of the concerns among people who are close to the 0:15:10.440 --> 0:15:15.239 newsroom and even outside observers is that this carries the appearance, 0:15:15.360 --> 0:15:21.200 eleven days before the election, of not just stopping the 0:15:21.320 --> 0:15:26.520 practice of endorsements, but spiking an editorial that was intended 0:15:26.560 --> 0:15:30.320 to endorse Kamala Harris for the presidency. And this carries 0:15:30.360 --> 0:15:34.920 the appearance of doing exactly what Jeff Bezos is trying 0:15:34.920 --> 0:15:37.520 to avoid, or at least as he explained it during 0:15:37.640 --> 0:15:40.400 in his article yesterday. 0:15:41.680 --> 0:15:44.200 Mike, just the basics here of why we're talking about this. 0:15:44.320 --> 0:15:48.120 Jeff Bezos the founder of Amazon, a high profile, an 0:15:48.160 --> 0:15:51.600 incredibly rich person in the world of technology, and he 0:15:51.720 --> 0:15:54.880 owns the Washington Post. Just take those basic facts and 0:15:54.960 --> 0:15:56.720 explain the significance of this action. 0:15:58.520 --> 0:16:02.000 Well, the signific against cannot be overstated. And it is 0:16:02.080 --> 0:16:05.200 yet another twist and an election that has had a 0:16:05.440 --> 0:16:09.640 historic number of surprises already. And it even caught the 0:16:09.680 --> 0:16:12.280 attention of Kamala Harris this morning. She was interviewed on 0:16:12.320 --> 0:16:16.840 the Breakfast Club syndicated radio program, calling it disappointing, but 0:16:16.920 --> 0:16:21.680 then also tying Jeff Bezos, the world's second second richest 0:16:21.680 --> 0:16:27.440 man after Elon Musk, to Donald Trump and other billionaires, saying, look, 0:16:27.720 --> 0:16:31.120 these are the people, the billionaires that Donald Trump is 0:16:31.400 --> 0:16:36.760 more likely to support. Rather than mainstream Americans. And we 0:16:36.840 --> 0:16:40.720 do see our own analysis here at Bloomberg indicates that 0:16:40.840 --> 0:16:45.720 more billionaires have donated toward the Trump candidacy than non billionaires. Now, 0:16:45.720 --> 0:16:48.480 when it comes to the tech industry, we do see 0:16:48.520 --> 0:16:50.800 a little bit of a reversal of polarity. We do 0:16:50.840 --> 0:16:54.960 see more of the wealthy tech founders, especially people like 0:16:55.160 --> 0:16:58.760 Eric Schmidt and Bill Gates. They have thrown their lot 0:16:58.840 --> 0:17:02.600 in with Kamala Harris, but overall, Harris is using this 0:17:02.760 --> 0:17:06.840 moment to point to what she sees as billionaires leaning 0:17:06.840 --> 0:17:07.800 toward Donald Trump. 0:17:08.480 --> 0:17:12.120 One billionaire just name checking Donald Trump over in Saudi Arabia, 0:17:12.280 --> 0:17:15.000 a live stream of Ela Masque, just speak to the 0:17:15.040 --> 0:17:16.159 impact that he's making. 0:17:16.200 --> 0:17:21.680 Mike Well, his impact on the race cannot be overstated. First, 0:17:21.680 --> 0:17:24.560 it's financial. He has put more than one hundred and 0:17:24.600 --> 0:17:27.480 thirty two million dollars of his own money into a 0:17:27.520 --> 0:17:30.040 superpack that is backing Donald Trump. 0:17:30.240 --> 0:17:32.040 But he is also putting in something. 0:17:31.800 --> 0:17:34.760 That's very precious for a guy who's running five companies, 0:17:34.800 --> 0:17:36.960 and that is time. He has spent time on the 0:17:37.000 --> 0:17:40.160 campaign trail in Pennsylvania and other states. He has been 0:17:40.240 --> 0:17:43.040 with Donald Trump, including at the event in New York 0:17:43.080 --> 0:17:46.879 at Madison Square Garden on Sunday, and he is seeing 0:17:46.960 --> 0:17:50.200 in Donald Trump as he is seeing Donald Trump as 0:17:50.240 --> 0:17:53.159 someone who can clear the path for some of his 0:17:53.400 --> 0:17:59.119 own ventures and his own aspirations, including a trip to Mars. 0:17:59.359 --> 0:18:04.640 And the President is being present former President Trump as 0:18:04.720 --> 0:18:06.879 if he were to make a return to office, someone 0:18:06.960 --> 0:18:09.680 who can clear the path when it comes to regulations. 0:18:10.560 --> 0:18:12.440 Yeah, that's the soundbit that we played early to Stay 0:18:12.440 --> 0:18:23.320 of Blowburg's Michael Shepard. Thank you very much. It's time 0:18:23.359 --> 0:18:26.320 for talking tech and first start. Indian food delivery platform 0:18:26.440 --> 0:18:29.480 Swiggy is seeking to sell shares for an IPO that 0:18:29.600 --> 0:18:31.800 may raise one point three five billion dollars. 0:18:31.840 --> 0:18:34.520 According to sources, The IPO will open for. 0:18:34.480 --> 0:18:37.640 Bids from November sixth and shares he expected to start 0:18:37.640 --> 0:18:41.679 trading from November thirteen. Swingy's IPO follows Hyundai India's recent 0:18:42.000 --> 0:18:45.399 record sale. Plus, Toshiba wants to reach double digit market 0:18:45.440 --> 0:18:48.919 share in the world's power chip market by twenty thirty 0:18:49.160 --> 0:18:50.520 as it lags behind rivals. 0:18:50.520 --> 0:18:52.320 Toshiba may eventually form. 0:18:52.160 --> 0:18:55.639 An alliance of companies that would corner thirty percent of 0:18:55.680 --> 0:18:58.680 the industry. According to one of his executives and over 0:18:58.720 --> 0:19:03.399 in Japan, Liberal Democratic Party heavyweight Akira Amari was defeated 0:19:03.520 --> 0:19:06.480 in the general election. It removes one from parliament, one 0:19:06.480 --> 0:19:09.479 of the chip sector's biggest advocates, while concerns have been 0:19:09.480 --> 0:19:13.160 growing over the amount of taxpayer money getting plowed into 0:19:13.200 --> 0:19:13.880 that industry. 0:19:13.880 --> 0:19:14.640 Of caroline. 0:19:14.760 --> 0:19:18.639 In other international chip news and the Biden administration finalized 0:19:18.680 --> 0:19:23.879 restrictions on investments by US individuals and companies into Chinese technology, 0:19:23.960 --> 0:19:28.399 including semiconductors, quantum computing, artificial intelligence. Of course, Bloomberg's Mackenzie 0:19:28.440 --> 0:19:30.919 Hawkins is here with more and this was long in 0:19:30.960 --> 0:19:31.439 the making. 0:19:31.640 --> 0:19:33.840 Just what is new in terms of these policies. 0:19:35.520 --> 0:19:38.280 So this is sort of the last big shoot to 0:19:38.359 --> 0:19:42.840 drop from the Biden Administration's restrictions on Chinese advanced tech development. 0:19:43.240 --> 0:19:44.800 We've said a lot of time on the show talking 0:19:44.840 --> 0:19:48.280 about export controls, restrictions on the sale of actual chips 0:19:48.280 --> 0:19:51.240 and ship making components to companies in China. This is 0:19:51.320 --> 0:19:56.480 restrictions on investments by American individuals and companies into Chinese 0:19:56.520 --> 0:19:59.760 AI chip and quantum computing companies. The rules have been 0:19:59.760 --> 0:20:02.800 in the works for over a year. There was originally 0:20:02.800 --> 0:20:06.080 fears that the investment restrictions would cover a broader swath 0:20:06.119 --> 0:20:08.959 of industries, but officials say they're aiming for a narrowly 0:20:09.040 --> 0:20:13.480 targeted approach looking at technologies that are key to US 0:20:13.480 --> 0:20:14.800 and Chinese national security. 0:20:15.760 --> 0:20:18.639 It's been some time, I think, since we've discussed the 0:20:18.720 --> 0:20:24.080 sector in these terms. But the target is American mutual funds, 0:20:24.720 --> 0:20:29.960 large venture capital firms, other technology companies that want to 0:20:30.160 --> 0:20:33.360 get a placehold on some of China's tech. Right, I'm 0:20:33.359 --> 0:20:37.040 trying to understand McKenzie, who would be subject to these controls? 0:20:38.200 --> 0:20:38.400 Right? 0:20:38.480 --> 0:20:42.399 So there are exemptions for certain types of investments, such 0:20:42.440 --> 0:20:46.600 as publicly traded securities or certain limited partner investments, but 0:20:46.680 --> 0:20:50.160 the goal is really to capture American capital and then 0:20:50.240 --> 0:20:53.760