WEBVTT - China Chip Controls Weigh on Market, Crypto Selloff Gathers Steam 0:00:02.720 --> 0:00:10.119 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:10.200 --> 0:00:15.920 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.360 --> 0:00:44.159 This is Bloomberg Technology with Caroline Hide and Ed Ludlow. 0:00:34.840 --> 0:00:37.199 Live from New York Home. Caroline Hyde and. 0:00:37.159 --> 0:00:40.320 I'm Jackie Devalas in San Francisco. This is Bloomberg Technology 0:00:40.440 --> 0:00:40.959 coming up. 0:00:41.080 --> 0:00:44.720 Anxiety builds with China chip controls weighing on semi stocks 0:00:45.000 --> 0:00:48.400 all ahead of Nvidia's numbers tomorrow, plus Tesla sales in 0:00:48.440 --> 0:00:50.960 Europe plummet forty five percent last month to a two 0:00:51.040 --> 0:00:54.200 year low in the region, and Bitcoin it slides below 0:00:54.280 --> 0:00:57.000 ninety thousand, its lowest level since mid November, as a 0:00:57.040 --> 0:00:59.800 crypto selloff gathers steam. But first we check in on 0:00:59.800 --> 0:01:03.400 these markets that identify the anxiety, whether it's around consumer 0:01:03.480 --> 0:01:06.280 sentiment here in the United States, whether it's around chip 0:01:06.400 --> 0:01:10.360 curves into China, technology access to China once again under 0:01:10.400 --> 0:01:11.920 the focus. And that's that one hundred off by one 0:01:11.959 --> 0:01:14.240 and a half percent. That is the longest losing streak 0:01:14.240 --> 0:01:16.560 as well, four straight days that we've seen since the 0:01:16.560 --> 0:01:19.000 beginning of this year. We're looking at Bitcoin under pressure, 0:01:19.000 --> 0:01:21.839 down by more than seven percent. Is it the macro picture. 0:01:21.959 --> 0:01:24.000 Is it concerns around a hack? Is it all just 0:01:24.080 --> 0:01:26.759 dialing into the selling pressure that we see across one 0:01:26.880 --> 0:01:28.880 is of course an asset risk asset of choice for 0:01:28.920 --> 0:01:30.440 the show move over and have a look at the 0:01:30.480 --> 0:01:32.320 individual movers that we want to cast a light on. 0:01:32.360 --> 0:01:36.320 Because Tesla off by eight percent, it has lost a 0:01:36.360 --> 0:01:39.360 third of its market capitalization since it's high back in December, 0:01:39.520 --> 0:01:41.640 and we're looking at currently once again under pressure on 0:01:41.640 --> 0:01:43.520 the sales side of the equation. We'll dig into it 0:01:43.560 --> 0:01:46.160 in a moment. Biggest points drag on the Nastak swiftly 0:01:46.160 --> 0:01:48.440 followed by Nvidia off by more than three percent ahead 0:01:48.440 --> 0:01:51.440 of its numbers tomorrow. We worry about the limitations of 0:01:51.520 --> 0:01:55.360 its chips into China once again, Trump extending the focus 0:01:55.360 --> 0:01:58.120 of the Biden administration here and the Magnificent seven just 0:01:58.160 --> 0:01:59.960 a tidle in a bow is off by two point 0:02:00.160 --> 0:02:03.480 eight percent. We are now in correction territory. This total 0:02:03.520 --> 0:02:06.280 return indexes off by more than ten percent from its highs. 0:02:06.520 --> 0:02:08.640 We're going to dig into the key focus of the day, 0:02:08.680 --> 0:02:11.680 that is the chip controls that's bringing Brnenbergs, Mike Shepard, 0:02:11.919 --> 0:02:15.519 Mike just an extension of Biden's focus here, and once 0:02:15.560 --> 0:02:18.800 again it is going to be impacting European technology players 0:02:19.000 --> 0:02:20.400 and the key ones here in the US. 0:02:21.800 --> 0:02:24.920 Yeah, Cara, this is a rare moment where you see 0:02:24.919 --> 0:02:29.840 the Trump administration picking up where their Biden administration predecessors 0:02:29.919 --> 0:02:33.360 left off, and that is pressuring governments in Japan and 0:02:33.400 --> 0:02:38.680 the Netherlands to get two signature companies, Tokyo Electron and ASML, 0:02:39.000 --> 0:02:42.520 to stop servicing chip making equipment that they have sold 0:02:42.560 --> 0:02:46.440 in China. Now this matters because those photo lithography machines 0:02:46.480 --> 0:02:50.160 that make semiconductors are really finicky. They're sensitive. Think of 0:02:50.240 --> 0:02:51.880 a Formula racing car. 0:02:52.000 --> 0:02:52.639 They need a. 0:02:52.560 --> 0:02:56.280 Lot of upkeep and regular upkeep to continue working at 0:02:56.280 --> 0:02:59.799 that level. And if you cut that off, it under 0:03:00.320 --> 0:03:02.920 what China and China's chip makers may be able to 0:03:03.000 --> 0:03:04.440 do with those machines. 0:03:05.720 --> 0:03:08.960 Mike, what does this mean for Trump's approach to chip 0:03:08.960 --> 0:03:12.320 policy towards China broadly? Are there any other signs that 0:03:12.360 --> 0:03:14.720 we're seeing that might make it different from the approach 0:03:14.760 --> 0:03:15.519 as Biden took. 0:03:16.919 --> 0:03:18.919 Well, Jackie, I'm glad you asked that, because this really 0:03:18.919 --> 0:03:23.320 does signal a broader direction of travel from the Trump administration, 0:03:23.440 --> 0:03:26.160 and that was one of the big questions coming in 0:03:26.200 --> 0:03:29.240 as they took office. Might they actually pull back a 0:03:29.240 --> 0:03:31.880 little bit on some of these restrictions as Trump tries 0:03:31.919 --> 0:03:35.400 to negotiate something with trade. Remember he is someone who 0:03:35.440 --> 0:03:37.920 tries to think of himself as a deal maker on everything, 0:03:37.960 --> 0:03:40.920 and why not throw chips into the mix. But he 0:03:40.960 --> 0:03:44.760 has also declared that artificial intelligence is an area where 0:03:44.760 --> 0:03:48.200 the US must maintain dominance, and the way to keep 0:03:48.320 --> 0:03:51.600 China at bay really is to deny a lot of 0:03:51.600 --> 0:03:56.320 that technology. So we've talked about possible restrictions on Nvidia's 0:03:57.600 --> 0:04:00.920 China's access to Nvidia chips used in a This is 0:04:01.000 --> 0:04:04.280 after the deep Seek breakthrough. We're also looking at another 0:04:04.400 --> 0:04:07.000 area that Trump may pick up where Biden left off, 0:04:07.040 --> 0:04:11.680 and that is possible measures against Chinese chip makers SMLIC 0:04:12.000 --> 0:04:16.920 and CXMT that are really critical to the domestic production 0:04:17.160 --> 0:04:19.800 in that country. And then, finally, the Trump team is 0:04:19.839 --> 0:04:23.640 also wage whether to further tighten those AI diffusion rules. 0:04:23.680 --> 0:04:26.960 Remember that three tiered system that the Biden folks unveiled 0:04:27.040 --> 0:04:31.000 just a week before the president left office. This is 0:04:31.040 --> 0:04:33.960 a signal to the market and to China that the 0:04:34.040 --> 0:04:36.920 Trump team really is trying to get tough and companies 0:04:36.960 --> 0:04:39.560 will have to brace maybe for more, especially when you 0:04:39.600 --> 0:04:43.200 consider that there are already ten percent tariffsu on Chinese 0:04:43.279 --> 0:04:46.440 imports with more to come. We may hear from Jensen 0:04:46.520 --> 0:04:49.000 Wang about this too. He's expressed a lot of concern 0:04:49.040 --> 0:04:51.040 and misgivings about this direction of travel. 0:04:51.160 --> 0:04:53.599 What about hearing from China. We know that they're trying 0:04:53.640 --> 0:04:55.600 to speed up their own independence. We hear of the 0:04:55.640 --> 0:04:58.160 latest developments out of Huawei and their chips, for example. 0:04:58.200 --> 0:05:02.200 Mike, that's a great question, Carol, because we are seeing 0:05:02.320 --> 0:05:08.080 Ali Baba investing Chinese going on the offense with rhetoric 0:05:08.160 --> 0:05:12.280 of course decrying these kinds of measures from the Biden administration, 0:05:12.440 --> 0:05:16.000 and now rumbling is about the same possibly coming from Trump. 0:05:16.040 --> 0:05:19.920 We heard that when the ten percent tariffs on Chinese 0:05:19.960 --> 0:05:24.800 imports were announced. They are also trying to invest heavily 0:05:24.920 --> 0:05:27.720 in their area. We saw the heads of Deep Seek 0:05:27.760 --> 0:05:31.640 and Ali Baba meet with Chinese President Xi Jianping just 0:05:31.680 --> 0:05:34.760 a few weeks ago to talk about how to get 0:05:34.880 --> 0:05:38.000 China tech back not only on the map, but really 0:05:38.000 --> 0:05:40.559 in the vanguard of Chinese industry. And this is after 0:05:40.880 --> 0:05:44.200 a few years of estrangement, and we're also seeing Ali Baba, 0:05:44.200 --> 0:05:47.840 as I said, investing heavily in this area. But you 0:05:47.920 --> 0:05:50.640 know a way to counter what we're seeing from the 0:05:50.760 --> 0:05:54.080 likes of Microsoft and US based companies that are trying 0:05:54.120 --> 0:05:56.920 to really dominate in this technology. 0:05:57.200 --> 0:06:00.919 Mike Shepard, thank you so much. Let's get the investment 0:06:01.040 --> 0:06:04.159 analysis now. Angelo Cacafa is with us. He a senior 0:06:04.160 --> 0:06:08.840 investment strategist, and Edward Jones. Angelo, we look at basically 0:06:08.920 --> 0:06:11.560 the only mag seven company now in the green for 0:06:11.600 --> 0:06:14.400 this year is Matter. All the rest are in the red. 0:06:14.640 --> 0:06:16.599 Are you expecting this going into twenty twenty five. 0:06:17.040 --> 0:06:19.039 I think one of our themes has been that of 0:06:19.160 --> 0:06:22.599 rotation and broadening, and that's playing out at the sectorial level, 0:06:22.880 --> 0:06:27.760 investment style and also a regional geographic Many people probably 0:06:27.839 --> 0:06:30.840 are surprised by the market's resilience. If you told the 0:06:30.960 --> 0:06:34.080 investors six months ago that six of the seven Magnificent 0:06:34.160 --> 0:06:37.120 names would be lagging the market down the group five 0:06:37.200 --> 0:06:40.120 percent for the year, most people have thought the market 0:06:40.120 --> 0:06:42.320 would be lower, which is not and I think that 0:06:42.400 --> 0:06:45.760 speaks to the still supportive backdrop that we have. 0:06:47.200 --> 0:06:49.920 Angelou what does this tell us about how investors are 0:06:49.920 --> 0:06:53.000 feeling or perhaps some of the reasoning behind it is 0:06:53.000 --> 0:06:55.760 this because of the uncertainty that Trump has injected into 0:06:55.839 --> 0:06:58.480 tech markets, more so as of way or our investors 0:06:58.520 --> 0:07:01.120 growing more discerning about tech growth prospects. 0:07:01.600 --> 0:07:05.279 Yeah, the market has had to navigate a lot of news, 0:07:05.400 --> 0:07:08.880 thinking about deep sick thinking about all the tariff announcements 0:07:08.920 --> 0:07:12.880 and uncertainty and the last hatter than expected CPI print. 0:07:13.240 --> 0:07:16.520 All that has been weighing on sentiment, and right now 0:07:16.600 --> 0:07:20.240 we are navigating a growth scare. It's not the first, 0:07:20.320 --> 0:07:23.280 it will not be the last. But at the same time, 0:07:23.840 --> 0:07:26.360 looking at the last three years, it's been a pattern 0:07:26.440 --> 0:07:30.840 that we do see some seasonality, negative seasonality in the 0:07:30.880 --> 0:07:33.960 first quarter of the year. Part of that probably related 0:07:34.000 --> 0:07:38.520 to weather, some snowstorms that are dragging down consumer spending, 0:07:38.840 --> 0:07:43.320 but the broader trend remains that where corporate profits are accelerating, 0:07:43.400 --> 0:07:45.920 so they don't have a need for layoffs to protect 0:07:46.000 --> 0:07:49.360 profit margins, and we have a federal reserve that is 0:07:49.400 --> 0:07:52.760 not looking to go back into tightening mode. So all 0:07:52.840 --> 0:07:55.520 that to us remain supportive. But at the near term 0:07:55.560 --> 0:07:58.480 we're going to experience probably a type of soft patch 0:07:58.480 --> 0:08:01.080 for the economy in first world and I hate. 0:08:00.960 --> 0:08:03.520 To say this sort of healthy flush out or what 0:08:03.560 --> 0:08:05.960 people like to suk about it, but many are thinking, look, 0:08:06.000 --> 0:08:08.480 this is froth that needs to come out. There were 0:08:08.640 --> 0:08:10.800 so called tourist investors that have come in and not 0:08:10.840 --> 0:08:14.200 assessed really the geopolitical element of these names. Look and 0:08:14.280 --> 0:08:17.200 videos traded lower than this this year. But are we 0:08:17.280 --> 0:08:18.920 going to start seed deep baying do you think? 0:08:19.440 --> 0:08:19.600 Yeah? 0:08:19.640 --> 0:08:22.040 I think that's exactly right. We have seen some froth 0:08:22.080 --> 0:08:24.040 and we are seeing some froth come out of the market. 0:08:24.040 --> 0:08:27.760 And we all know that sentiment is a contrarian indicator. 0:08:28.040 --> 0:08:31.040 So that sets up well for the second potentially half 0:08:31.040 --> 0:08:34.720 of the year where for a long term investors standpoint, 0:08:34.840 --> 0:08:39.040 these pullbacks can be opportunities to really deploy capital first 0:08:39.080 --> 0:08:42.760 capital divers fire portfolios. We think that broadening in rotation 0:08:42.920 --> 0:08:46.000 theme has legs to it. And for those that worried 0:08:46.040 --> 0:08:49.720 about tariffs and the impact of policies, we have domestic 0:08:49.760 --> 0:08:53.280 cyclical companies and sectors that can benefit from the pro 0:08:53.320 --> 0:08:56.600 growth policies that are likely coming down the road. So far, 0:08:56.720 --> 0:08:59.360 we're getting the vegetables before the cake. In the first 0:08:59.360 --> 0:09:01.920 tip administry, we get the cake first with tax cats, 0:09:02.080 --> 0:09:04.080 and then the vegetable, so we have to navigate through 0:09:04.120 --> 0:09:06.000 this bumbierd path earlier in the year. 0:09:06.120 --> 0:09:09.280 But everyone ate the Tesla cake the minute that basically 0:09:09.400 --> 0:09:12.480 Trump was announced as the winner in Elod's relationship. But 0:09:12.600 --> 0:09:15.600 how idiosyncratic, how focused on individual names. You have to 0:09:15.600 --> 0:09:19.200 get and actually read through what are fundamental changes and 0:09:19.240 --> 0:09:22.360 the views on certain companies like European Sales testl which 0:09:22.360 --> 0:09:23.480 will dig into later in the show. 0:09:24.200 --> 0:09:27.080 Yeah, I think you know, certainly the concentration is an 0:09:27.160 --> 0:09:29.600 issue for investors and people that manage money. But at 0:09:29.640 --> 0:09:31.520 the same time, we know that the four ninety three 0:09:32.000 --> 0:09:35.520 earnings are accelerating and actually are the strongest in three years. 0:09:35.800 --> 0:09:39.440 So there is a lot more beyond these seven names. Yes, 0:09:39.480 --> 0:09:42.160 they are important, but they're becoming less important than the 0:09:42.240 --> 0:09:44.920 we're in the past, and I think the versification is 0:09:44.960 --> 0:09:47.600 going to be a key theme for investors to pay 0:09:47.640 --> 0:09:48.200 attention to. 0:09:49.400 --> 0:09:53.120 San Angelo krakoffa senior investment Strategies at Edward Jones. Thanks 0:09:53.120 --> 0:10:04.120 for joining us. Let's get a look at Tesla shares 0:10:04.160 --> 0:10:07.640 are down after sales plummeted by nearly fifty percent across 0:10:07.679 --> 0:10:10.160 Europe at the start of twenty twenty five. That drag 0:10:10.360 --> 0:10:14.360 Tesla markets cap now below a trillion dollars. Bloomberg's Craig 0:10:14.400 --> 0:10:17.400 Trudell joins us now for more. Craig, what's behind this 0:10:17.520 --> 0:10:21.360 disconnect because the UK's EV sales actually grew by forty percent, 0:10:21.400 --> 0:10:23.600 but you're seeing Tesla registrations fall. 0:10:25.000 --> 0:10:28.040 Yeah, they grew in the UK, they grew in Europe broadly. 0:10:28.840 --> 0:10:30.800 I think there's a couple of things going on here. 0:10:30.880 --> 0:10:33.200 Of course, there's a lot of questions about, you know, 0:10:33.200 --> 0:10:35.920 how much of this is a sort of backlash against 0:10:35.960 --> 0:10:38.640 Elon Musk and how much of it is you know, 0:10:38.720 --> 0:10:42.360 something's going on specific to Tesla, And I think, you know, 0:10:42.400 --> 0:10:46.200 it's probably a mix of both. I think we'll be 0:10:46.240 --> 0:10:48.960 able to untangle that a bit more as the year 0:10:49.000 --> 0:10:51.600 goes on. But we know that earlier this year the 0:10:51.679 --> 0:10:54.840 company is changing over its factories as part of a 0:10:54.880 --> 0:10:57.720 redesign of a model why that is a really important 0:10:57.760 --> 0:11:00.240 vehicle for them, and so that's definitely coming out into 0:11:00.240 --> 0:11:02.800 play here. But I think the fact that he inserted 0:11:02.880 --> 0:11:06.560 himself in politics in in Germany and in the UK 0:11:06.760 --> 0:11:10.000 so emphatically last month really raises a lot of questions. 0:11:10.400 --> 0:11:13.360 Has that been much data drawn from whether This is 0:11:13.400 --> 0:11:17.240 a consumer reaction, knee jerk reaction to Elon Musk's own behavior, 0:11:17.440 --> 0:11:20.680 because one month doesn't an entire trend make as you 0:11:20.720 --> 0:11:22.360 point out, yeah. 0:11:22.080 --> 0:11:24.200 No, that's it's very fair, and I mean we we 0:11:24.280 --> 0:11:27.080 don't unfortunately, have you know, sort of the equivalent of 0:11:27.120 --> 0:11:30.280 exit polls at dealerships right where people tell us, you know, 0:11:30.360 --> 0:11:34.000 well I bought this Renault or this Volkswagen because I 0:11:34.040 --> 0:11:36.640 didn't like Elon Musk. But what we do know is that, 0:11:36.720 --> 0:11:38.719 you know, some poles were taken in some of the 0:11:38.960 --> 0:11:42.000 biggest ev markets in Europe in January and they did 0:11:42.000 --> 0:11:44.679 not look very good for Elon Musk. And so you know, 0:11:44.880 --> 0:11:48.520 for him to be increasingly unpopular in some of these places, 0:11:48.920 --> 0:11:51.880 and you know, for him to take these sans stances 0:11:51.920 --> 0:11:56.480 that you know are are unpopular, you know, whether it's 0:11:56.480 --> 0:12:00.560 it's uh, you know, kind of taking these reporting far 0:12:00.640 --> 0:12:05.600 right parties or taking this hardline stance against Ukraine, these 0:12:05.640 --> 0:12:08.720 sorts of things, you know, potentially, you know, put the 0:12:08.760 --> 0:12:12.760 Tesla brand at risk more so than even in the US. 0:12:13.679 --> 0:12:17.920 Craig, who's gaining from this? What Tesla rivals are benefiting 0:12:18.040 --> 0:12:19.280 from from this lag? 0:12:20.880 --> 0:12:24.400 I think it's it's really honestly kind of diffuse in 0:12:24.480 --> 0:12:28.080 terms of who's benefiting. It's it's pretty consistent that, you know, 0:12:28.160 --> 0:12:32.040 other manufacturers are seeing increases in their EV sales and 0:12:32.080 --> 0:12:35.160 that's probably no coincidence. We do know that, you know, 0:12:35.240 --> 0:12:38.280 in Europe in twenty twenty five, everyone's going to have 0:12:38.360 --> 0:12:41.720 to meet a tougher CO two regulations and so everyone 0:12:41.720 --> 0:12:43.400 really has to sort of put the pedal to the 0:12:43.400 --> 0:12:47.120 metal and sell more electric vehicles. That means more competition 0:12:47.240 --> 0:12:50.480 for Tesla this year in Europe, and that's also likely 0:12:50.600 --> 0:12:52.320 coming into play and going to be a sort of 0:12:52.400 --> 0:12:54.920 lasting thing that Tesla's going to have to face the 0:12:54.960 --> 0:12:55.560 rest of the year. 0:12:55.760 --> 0:12:58.120 All eyes on BYD in the UK, for example, Craig 0:12:58.200 --> 0:13:02.439 Drudell is a great story. Meanwhile, Elo Musk SpaceX is 0:13:02.480 --> 0:13:05.840 seeking to deploy Starling satellite Internet terminals to help upgrade 0:13:05.840 --> 0:13:09.720 the IT networks that support the Federal Aviation Administration's National 0:13:09.720 --> 0:13:12.160 Air Base System that's here in the US as all. 0:13:12.200 --> 0:13:14.959 According to sources who say this latest effort really raises 0:13:15.000 --> 0:13:19.000 questions about conflicts of interest for Musk's business empire. New 0:13:19.040 --> 0:13:22.560 Meg's Allison Firstville is here with us for more. What 0:13:22.720 --> 0:13:26.520 exactly is the FAA going to do with these Starling terminals, so. 0:13:26.559 --> 0:13:28.800 Right now they're really in a testing phase. We know 0:13:28.880 --> 0:13:31.000 that they're starting to test them out in Atlantic City, 0:13:31.000 --> 0:13:33.480 which is kind of the air traffic control lab, if 0:13:33.480 --> 0:13:34.960 you will, where they do a lot of R and D. 0:13:35.480 --> 0:13:40.520 There also testing them out in Alaska. And the FA 0:13:40.559 --> 0:13:43.560 statement that came out last night confirming this reporting, they 0:13:43.640 --> 0:13:46.520 essentially said, you know, we're looking to fix telecommunications connections 0:13:46.520 --> 0:13:49.880 and remote areas to provide more reliable information such as 0:13:49.880 --> 0:13:53.480 weather information, which has been a problem in places like Alaska. 0:13:54.000 --> 0:13:56.160 At this point, we're still, you know, waiting to see 0:13:56.160 --> 0:13:59.520 how expansive the use of starlink might get, but we 0:13:59.640 --> 0:14:02.280 do know that, you know from talking to our sources 0:14:02.280 --> 0:14:04.880 that Elon Musk has approved the shipment of four thousand 0:14:04.920 --> 0:14:06.520 terminals in total to the FAA. 0:14:07.440 --> 0:14:09.679 So, you know, it seems like Morris to. 0:14:09.600 --> 0:14:13.559 Come, Allison, what does this mean for Verizon, who has 0:14:13.600 --> 0:14:15.720 an existing contract with the agency? 0:14:16.960 --> 0:14:19.720 That's right, So Verizon has this existing two billion dollar 0:14:19.840 --> 0:14:23.520 contract to provide all of these types of telecommunications services, 0:14:24.120 --> 0:14:27.560 and you know, in kind of dueling statements last night, 0:14:27.560 --> 0:14:31.640 Elon Musk said on social media platform x that you know, 0:14:31.680 --> 0:14:35.400 the Verizon system isn't working. Verizon said, you know, the 0:14:35.520 --> 0:14:39.200 enhancements that it is doing are critical to air safety. 0:14:39.360 --> 0:14:43.720 So we're still waiting to see exactly what happens with 0:14:43.800 --> 0:14:46.600 the Verizon contract. That's something that we're continuing to talk 0:14:46.640 --> 0:14:48.360 to people about. And the folks that we talked to 0:14:48.400 --> 0:14:51.040 already said they weren't sure exactly where that was going 0:14:51.040 --> 0:14:51.240 to go. 0:14:51.560 --> 0:14:53.760 And there is indeed the statement that you don't put 0:14:53.800 --> 0:14:56.960 out on X a little bit earlier reaction to your reporting. 0:14:57.800 --> 0:15:01.280 The next steps are going to be about conflicts of 0:15:01.280 --> 0:15:04.680 interest here. I'm sure that's something that everyone is considering. 0:15:04.960 --> 0:15:08.320 Is it something that Verizon considers, the government considers, so. 0:15:08.520 --> 0:15:11.000 I mean, it's certainly something that lawmakers on Capitol Hill 0:15:11.000 --> 0:15:15.080 are considering. We already saw when Transportation Secretary Sean Duffy 0:15:15.120 --> 0:15:18.840 first announced that SpaceX would be involved in modernizing the 0:15:18.920 --> 0:15:21.960 US aviation systems in air traffic control. You know, you 0:15:22.000 --> 0:15:25.520 saw lawmakers like Senator Maria Cantwell, who's the top Democrat 0:15:25.520 --> 0:15:28.040 on the Senate Commerce Committee, saying, you know, Elon mus 0:15:28.040 --> 0:15:30.360 shouldn't be involved in this effort. He has a company 0:15:30.360 --> 0:15:33.760 with SpaceX that's regulated by the FAA, and he has 0:15:33.840 --> 0:15:37.360 had penalties proposed against him from that same agency. And 0:15:37.400 --> 0:15:39.760 then you have others like Senator Tammy Duckworth, who have 0:15:40.080 --> 0:15:44.040 you know, questioned, can we afford to move this quickly 0:15:44.600 --> 0:15:46.840 like Elon Musk likes to do with some of his companies, 0:15:46.880 --> 0:15:48.800 because this is something you really don't want to break. 0:15:49.960 --> 0:15:53.400 That's Bloomberg's Allison Versuspaile, Thanks so much for joining us. 0:15:53.400 --> 0:15:56.920 Elon Musk is doubling down and said federal workers will 0:15:56.920 --> 0:15:59.960 be given a second opportunity to respond to a government 0:16:00.160 --> 0:16:03.520 wide email detailing what they did last week and threatened 0:16:03.520 --> 0:16:06.440 to fire any employee who doesn't need as demands. But 0:16:06.480 --> 0:16:10.200 the federal agency sent that email said that Monday. It's 0:16:10.280 --> 0:16:13.840 up to agency leadership, not Musk. What happens to those 0:16:13.880 --> 0:16:17.880 who ignore the message? Caroline coming up, Jackie super Micro. 0:16:18.480 --> 0:16:20.320 We're keeping an eye on the stock as it's a 0:16:20.440 --> 0:16:22.600 crucial day the AI server maker. 0:16:22.640 --> 0:16:25.080 Why the company is facing a deadline to file it's 0:16:25.120 --> 0:16:28.800 already delayed financials. We are off twelve percent on the day. 0:16:29.120 --> 0:16:47.080 This is Blue Meg Technology. The crypto sell off is 0:16:47.120 --> 0:16:50.560 gaining traction, Bitcoin tumbling to the lowest level since November tenth, 0:16:50.880 --> 0:16:54.120 that worst day since August. As we stand, the Trump 0:16:54.160 --> 0:16:57.520 victory rally reversing under the pressure of industry setbacks and 0:16:57.560 --> 0:17:00.880 of course tariff policy and macro perspective in Emily, Nicole, 0:17:01.240 --> 0:17:04.080 is it macro? Is it idiosyncratic? Can we worried about 0:17:04.080 --> 0:17:05.520 the hats example? 0:17:05.960 --> 0:17:07.280 I think it's a mix of everything. 0:17:07.320 --> 0:17:09.600 To be honest, with crypto, you can never rule out 0:17:09.640 --> 0:17:12.719 the macro impact that's going on around it. It's definitely 0:17:12.760 --> 0:17:15.800 still an asset that does move in tandem with traditional markets, 0:17:15.800 --> 0:17:17.840 and so the pain that we're seeing in treasury is 0:17:17.880 --> 0:17:20.280 the pain that we're seeing in stocks that is also 0:17:20.320 --> 0:17:23.879 spilling into crypto. But with the market having overcome a 0:17:23.920 --> 0:17:26.960 one point five billion dollar hack on Friday, you can't 0:17:27.000 --> 0:17:29.800 ignore that either, and so we're definitely seeing a tandem 0:17:29.800 --> 0:17:32.639 effect happening and Bitcoin is really suffering because of that. 0:17:34.000 --> 0:17:37.840 Nicole, Emily, I'm sorry. What catalyst are we waiting for here? 0:17:37.960 --> 0:17:40.520 What are crypto markets looking for over the next couple 0:17:40.600 --> 0:17:42.399 months that could turn the tides? Is it going to 0:17:42.440 --> 0:17:44.200 be another Trump? Mean coin? 0:17:44.760 --> 0:17:47.240 There are a few things that might be on the horizon. 0:17:47.320 --> 0:17:50.440 So for example, in Solana, one of the smaller tokens, 0:17:50.480 --> 0:17:52.600 a lot of people pay attention to these days. We 0:17:52.680 --> 0:17:55.199 have a big unlocked coming next month about a one 0:17:55.240 --> 0:17:57.560 point seven billion dollars worth in tokens that could hit 0:17:57.600 --> 0:18:00.000 the market, So that's something that might weigh on price 0:18:00.640 --> 0:18:03.160 and for bitcoin as well. You know, with Trump, every 0:18:03.280 --> 0:18:05.640 day there's something new that's coming out of Washington. 0:18:06.000 --> 0:18:06.640 There could be. 0:18:06.720 --> 0:18:10.359 Signs of things coming on the possible US Strategic Reserve 0:18:10.400 --> 0:18:12.840 for bitcoin that he floated last summer. There could be 0:18:12.880 --> 0:18:15.439 things coming in terms of bills on stable coins. So 0:18:15.840 --> 0:18:18.400 all of that will be weighing on sentiment, but none 0:18:18.400 --> 0:18:20.440 of it is really big enough that you know, could 0:18:20.440 --> 0:18:23.200 push it really back above that one hundred thousand dollar mark, 0:18:23.359 --> 0:18:25.600 and that's what crypti traders really want to see at 0:18:25.600 --> 0:18:26.160 the minute. 0:18:26.359 --> 0:18:28.879 No, we just saw eth that was indeed more the 0:18:28.880 --> 0:18:31.760 focus of that by bit hack. There are issues that 0:18:31.800 --> 0:18:35.760 you see globally, Javier Mille over in Argentina getting embroiled 0:18:35.800 --> 0:18:38.560 in mean coin fiasco as well. This is a global 0:18:38.640 --> 0:18:41.760 sentiment indicator. But how much are you seeing people pull 0:18:41.800 --> 0:18:45.600 away from some of the more sordid sides of crypto 0:18:45.640 --> 0:18:46.600 more broadly. 0:18:46.480 --> 0:18:48.439 Well, I mean crypto as a whole is an asset 0:18:48.440 --> 0:18:51.280 cast that really does run that gammut. You know, you've 0:18:51.280 --> 0:18:53.919 got bitcoin now being considered firmly a bit of an 0:18:53.960 --> 0:18:57.119 institutional bet because of the debut of US spot ets 0:18:57.119 --> 0:18:59.760 tied to it last January. It's definitely one that is 0:18:59.800 --> 0:19:02.120 kind of ingratiated itself there, at least. 0:19:01.960 --> 0:19:02.679 On Wall Street. 0:19:03.000 --> 0:19:05.359 But then if we look at something like Solana. The 0:19:05.440 --> 0:19:07.600 last year for that folk chain has been a lot 0:19:07.640 --> 0:19:11.520 about pump un dump schemes, meme coins assets that like 0:19:11.600 --> 0:19:14.600 the one supported by Malai can go to four billion 0:19:14.760 --> 0:19:17.400 and then down to almost nothing in the same day. 0:19:17.880 --> 0:19:20.760 So there's definitely a bit of a wait and see 0:19:20.760 --> 0:19:23.360 it the minute as to how these tokens really kind 0:19:23.400 --> 0:19:26.240 of go forward this year, whether or not institutions might 0:19:26.440 --> 0:19:29.320 look more favorably on coins in future. A lot of 0:19:29.359 --> 0:19:32.440 that will depend on how the regulatory landscape pans out. 0:19:32.880 --> 0:19:36.160 That's Bloomberg's eminente look, Nicole, thanks so much for joining us. 0:19:36.560 --> 0:19:40.320 Super Micro is set to submit outstanding financial reports today 0:19:40.400 --> 0:19:43.360 to remain listed on the Nasdaq. The stock, which recently 0:19:43.440 --> 0:19:46.359 rallied is hinging on the company's ability to trade on 0:19:46.400 --> 0:19:50.200 the exchange. Bloomberg's Brody Ford joins US now for more Brody, 0:19:50.280 --> 0:19:52.439 Why are they taking this down to the wire. Has 0:19:52.440 --> 0:19:55.000 the company said anything about its plans to actually meet 0:19:55.080 --> 0:19:56.679 this deadline? 0:19:57.040 --> 0:19:59.399 They've said a couple of times, and backing up a bit, 0:19:59.480 --> 0:20:01.720 I mean, super Micro's had a rough couple of months. 0:20:01.720 --> 0:20:05.440 They weren't able to file some financials back in August. 0:20:05.760 --> 0:20:09.000 Their auditor dropped them with some pretty colorful language, some 0:20:09.080 --> 0:20:11.240 things you never want your audit or to say privately, 0:20:11.320 --> 0:20:14.119 let alone publicly. But you know what, they picked up 0:20:14.119 --> 0:20:16.199 a new auditor and they said, we're going to be 0:20:16.240 --> 0:20:17.960 able to get it in time. We believe we'll be 0:20:17.960 --> 0:20:20.240 able to do it. They were saying this as recently 0:20:20.280 --> 0:20:23.520 as a week or two ago, and so the consensus 0:20:23.560 --> 0:20:25.840 at least until today was that they were going to 0:20:25.880 --> 0:20:28.920 be able to make it. The stock right now suggests 0:20:29.000 --> 0:20:31.919 there's some anxiety creeping in, certainly, but we don't have 0:20:32.000 --> 0:20:35.040 any reason to believe that, you know, their plans have 0:20:35.160 --> 0:20:36.760 changed or they're not going to be able to make it. 0:20:37.080 --> 0:20:39.240 Yeah, the CEO but a week or so ago sounding 0:20:39.280 --> 0:20:41.720 pretty confident. There are five by ratings on this stock. 0:20:41.800 --> 0:20:46.439 There are two cells where are general fundamental analysis on 0:20:46.520 --> 0:20:49.040 the company, even headed Brody Well. 0:20:49.040 --> 0:20:52.120 They are for sure in the AI story they're making money. 0:20:52.200 --> 0:20:54.359 I mean, if you look at their revenue chart over time, 0:20:54.400 --> 0:20:56.480 I think their revenue annually is going to be up 0:20:56.560 --> 0:20:59.080 like you know, four times where it was a couple 0:20:59.119 --> 0:21:01.840 of years ago. When you need to buy these Nvidia chips, 0:21:01.880 --> 0:21:03.560 you need to buy them in a server, and super 0:21:03.600 --> 0:21:06.000 Micro is done a really good job selling into the 0:21:06.040 --> 0:21:10.959