WEBVTT - Trump's TSMC Investment, Hulu Oscar Glitches 0:00:02.720 --> 0:00:09.720 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.760 --> 0:00:15.520 where innovation, money and power collide in Silicon Valley and beyond. 0:00:15.920 --> 0:00:20.239 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:20.320 --> 0:00:36.280 Ludlow live from New York. 0:00:36.320 --> 0:00:40.480 I'm Romain Bostic and I'm Jackie Devallas in Washington. This 0:00:40.680 --> 0:00:45.080 is Bloomberg Technology coming out. Trump and TSMC are expected 0:00:45.080 --> 0:00:48.560 to announce a one hundred billion dollar investment in the US. 0:00:48.840 --> 0:00:50.160 That's according to reports. 0:00:50.520 --> 0:00:53.000 Plus, we'll dig into the potential impact of the US 0:00:53.120 --> 0:00:56.840 tears on the tech sector, especially chips, as that deadline 0:00:56.840 --> 0:01:01.240 approaches and Honora dominates the twenty two five oscars while 0:01:01.280 --> 0:01:05.000 Disney's Hulu takes a hit crashing during the ceremony. We'll 0:01:05.000 --> 0:01:07.360 have all the details, but first let's get a check 0:01:07.360 --> 0:01:08.040 on those markets. 0:01:08.080 --> 0:01:09.319 What do you see, Romaine, There's a. 0:01:09.319 --> 0:01:10.640 Lot to check here right now. 0:01:10.640 --> 0:01:12.520 You're looking at a market that has really been on 0:01:12.560 --> 0:01:14.760 a roller coaster ride. The inter day chart of the 0:01:14.840 --> 0:01:17.960 NASTAQ one hundred really indicative of that. We came into 0:01:18.000 --> 0:01:21.160 this morning with an expectation of a continuation of that 0:01:21.280 --> 0:01:24.600 tech rebound off of that strong rally on Friday, but 0:01:24.720 --> 0:01:27.200 that got kneecapped about thirty minutes into the sessions, some 0:01:27.319 --> 0:01:31.920 economic data showing further contraction in the manufacturing sector here 0:01:31.920 --> 0:01:35.440 in the United States, combined with an increase in the 0:01:35.520 --> 0:01:39.440 price index here inflationary pressures rearing their head. But then 0:01:39.480 --> 0:01:41.640 guess what a little bit of a reprieve came in 0:01:41.920 --> 0:01:44.200 just around a little bit around ten thirty here in 0:01:44.319 --> 0:01:47.480 New York City, headlines from the Wall Street Journal saying 0:01:47.520 --> 0:01:51.840 that the Trump administration does plan to announce further investments 0:01:51.840 --> 0:01:54.920 in the chip space here in the United States, a 0:01:54.960 --> 0:01:59.600 one hundred billion dollar commitment from TSMC Taiwan Semiconductor over 0:01:59.640 --> 0:02:02.600 the next four years. This may not look like much 0:02:02.640 --> 0:02:04.560 on your screen, but you did see a rebound in 0:02:04.680 --> 0:02:07.760 tech stocks. The one percent dropped they were seeing in TSM. 0:02:08.000 --> 0:02:10.799 They were down about three percent earlier in the session. 0:02:10.840 --> 0:02:14.120 The rest though, of the Philadelphia Semiconductor Index right now 0:02:14.240 --> 0:02:17.359 straddling the line, Jackie, between gains and losses. 0:02:18.440 --> 0:02:21.400 Let's get more on that CSMC deal with Bloomberg's Mike Shepherd, 0:02:21.400 --> 0:02:23.800 who's joining us now, Mike, what do we know about 0:02:23.800 --> 0:02:24.680 this potential deal? 0:02:24.880 --> 0:02:27.359 Well, we've been able to confirm here what the Wall 0:02:27.360 --> 0:02:31.040 Street Journal had reported earlier that TSMC will announce at 0:02:31.040 --> 0:02:34.280 one thirty PM with Donald Trump in the White House 0:02:34.639 --> 0:02:37.800 plans for up to one hundred billion dollars of investment 0:02:37.919 --> 0:02:40.519 in the US. And what we know from beforehand from 0:02:40.560 --> 0:02:43.680 our coverage of TSMC and the big push to expand 0:02:43.720 --> 0:02:47.280 chips manufacturing here in the US, there were already plans 0:02:47.320 --> 0:02:50.639 by the company for up to sixty five billion dollars 0:02:50.680 --> 0:02:54.320 in investment, supported by some money from the Biden era 0:02:54.639 --> 0:02:57.920 chipsack programs. But the idea would be to build some 0:02:57.960 --> 0:02:59.200 plants in Arizona. 0:02:59.240 --> 0:03:01.280 They are have one that. 0:03:01.360 --> 0:03:02.519 Was actually ed. 0:03:03.160 --> 0:03:07.560 TSMC was lured by Trump to Arizona back in twenty twenty. 0:03:07.760 --> 0:03:10.000 That plan is now up and running, its yields or 0:03:10.040 --> 0:03:15.560 even exceeding what we typically see from plants by TSMC 0:03:15.720 --> 0:03:18.200 back home in Taiwan, and there are plans for as 0:03:18.240 --> 0:03:20.400 many as three more plants as well. 0:03:20.520 --> 0:03:22.480 So Mike, give us a CeNSE here, though, when we 0:03:22.520 --> 0:03:25.240 talk about these dollar commitments, and we've seen a lot 0:03:25.240 --> 0:03:27.760 of these commitments, what's the follow through? I mean, there 0:03:27.760 --> 0:03:29.919 was a story on the Bloomberg terminal over the last 0:03:30.000 --> 0:03:32.720 forty eight hours saying that Intel is having trouble getting 0:03:32.720 --> 0:03:35.200 some of its chip plants up and running in the 0:03:35.240 --> 0:03:38.320 timeframe that had originally set out. How much progress has 0:03:38.400 --> 0:03:43.120 TSMC made so far on those previous commitments, But one. 0:03:42.960 --> 0:03:47.120 Of the biggest differences between TSMC and Intel is really 0:03:47.160 --> 0:03:50.400 the customer base. And Intel has struggled to find customers 0:03:50.400 --> 0:03:52.280 that would be able to sustain a plan of the 0:03:52.320 --> 0:03:54.680 skill of the one in Ohio that you just mentioned. 0:03:55.120 --> 0:03:58.520 And TSMC, on the other hand, it is the world's 0:03:58.600 --> 0:04:02.680 leading maker of artificial intelligence to chips and the demand 0:04:02.720 --> 0:04:05.800 for that is insatiable. As we know, they are the 0:04:05.920 --> 0:04:09.400 leading foundry for Nvidia and in video. We just saw 0:04:09.480 --> 0:04:13.240 the earnings last week. Jensen Wang, the CEO of Nvidia, 0:04:14.000 --> 0:04:17.800 looking ahead to really demand that is hard to meet 0:04:17.880 --> 0:04:21.960 for their products, Blackwell and others, as this capex that 0:04:22.000 --> 0:04:26.400 we're seeing globally going into artificial intelligence really seems to 0:04:26.440 --> 0:04:29.919 be on course to continue unabated. And this actually fits 0:04:29.960 --> 0:04:34.039 in with Donald Trump's own vision for artificial intelligence. He 0:04:34.160 --> 0:04:37.200 wants to make sure that the US remains dominant in 0:04:37.240 --> 0:04:40.919 this area, and even by having a foreign flagged and 0:04:40.960 --> 0:04:45.440 owned company like TSMC in the US expanding that does 0:04:45.680 --> 0:04:49.320 fit his vision. One he articulated before the election of 0:04:49.400 --> 0:04:52.719 having companies from a broad invest in the United States. 0:04:53.000 --> 0:04:54.799 All right, Mike Shepard, a man in DC. 0:04:55.000 --> 0:04:58.360 There, as we await that press conference, that announcement by 0:04:58.440 --> 0:05:01.920 President Donald Trump's schedule for one thirty pm out of Washington, 0:05:02.120 --> 0:05:05.080 we should point out the Philadelphia Semiconductor Index has been 0:05:05.120 --> 0:05:07.240 on a ride down one percent, up a couple of 0:05:07.279 --> 0:05:10.359 percent now straddling the line between gains and losses. No 0:05:10.440 --> 0:05:13.160 help from Nvidia, no help from TSMC, but you are 0:05:13.200 --> 0:05:15.599 seeing a lot of the other names rally here into 0:05:15.680 --> 0:05:19.120 that session, Lamb Research, Lattice, and Intel among your big gainers. 0:05:19.279 --> 0:05:21.840 Let's bring fionas and got it into the conversation City 0:05:21.920 --> 0:05:25.000 Index senior analysts to talk a little bit more about 0:05:25.000 --> 0:05:28.040 the tech trade, and Fiona, I am curious about where 0:05:28.400 --> 0:05:30.160 sort of the fuel is going to come for the 0:05:30.200 --> 0:05:31.840 next leg of this. I guess we can call it 0:05:31.960 --> 0:05:33.920 chip slash AI trade. 0:05:33.960 --> 0:05:35.000 Where's that come from? 0:05:36.520 --> 0:05:38.360 Yeah, it's a really good point, because you know, it's 0:05:38.360 --> 0:05:41.520 been a difficult start to twenty twenty five. You know, 0:05:41.640 --> 0:05:45.200 we've seen that the reflected in share prices, which across 0:05:45.200 --> 0:05:47.680 the board have struggled since the. 0:05:47.680 --> 0:05:49.320 Start of the year. 0:05:49.480 --> 0:05:51.520 So you know, I think we're very much getting to 0:05:51.560 --> 0:05:54.880 this stage where the markets are looking as you correctly 0:05:54.880 --> 0:05:56.479 pointed out that next catalyst. 0:05:56.600 --> 0:05:58.800 But I think it's also worth bearing in mind. 0:05:58.520 --> 0:06:01.720 That there are several clients that are just looming over 0:06:02.160 --> 0:06:04.080 the sector, and I think one of those clouds that 0:06:04.120 --> 0:06:06.960 we're waiting for a bit more clarity on is what 0:06:07.080 --> 0:06:11.040 Trump's intending to do as far as export bands are concerned. 0:06:11.080 --> 0:06:13.719 You know, there are some sort. 0:06:13.560 --> 0:06:17.360 Of reports that potentially we could see more export bands 0:06:17.400 --> 0:06:21.360 to China coming into place potentially this week. I think 0:06:21.360 --> 0:06:23.279 once we start to get a bit of a clearer 0:06:23.400 --> 0:06:27.680 picture of how the Trump administration is looking to position 0:06:27.800 --> 0:06:31.320 itself as far as the chip sector is concerned, I 0:06:31.320 --> 0:06:34.000 think that could help at least stem. 0:06:33.760 --> 0:06:37.440 Concerns that have been weighing on the sector. 0:06:37.680 --> 0:06:39.599 And I think the other thing is that we just 0:06:39.720 --> 0:06:42.440 also need to get a little bit more clarity I 0:06:42.480 --> 0:06:47.600 think over the outlook for sort of reduced costs as 0:06:47.680 --> 0:06:51.560 far as AI is concerned. Obviously, we've had earning season 0:06:51.600 --> 0:06:53.560 and we've learned a lot. We know that spending is 0:06:53.600 --> 0:06:56.520 still high. But I think the whole deep seek disruption, 0:06:56.839 --> 0:06:59.440 just so the seed of doubt, which I don't feel 0:06:59.760 --> 0:07:02.840 how been removed yet, So I think we just need 0:07:02.880 --> 0:07:06.920 a little bit more clarification as to what the outlook 0:07:07.000 --> 0:07:09.440 is as far as being able to reduce spending on 0:07:09.560 --> 0:07:12.400 AI CAPEX spending is concerned. 0:07:13.680 --> 0:07:17.560 To your point about what Trump's policies mean for the 0:07:17.600 --> 0:07:22.320 semiconductor sector, there is some concern that tariffs or other 0:07:22.400 --> 0:07:26.240 policies could eventually lead to price increases in the space. 0:07:26.400 --> 0:07:28.960 There's been some debate about how much of an effect 0:07:29.000 --> 0:07:32.400 that would actually have on companies' abilities to offer them 0:07:32.400 --> 0:07:35.040 at a price that's still appealing to their customers. 0:07:35.320 --> 0:07:36.640 Where do you land on that. 0:07:36.800 --> 0:07:40.120 Is that something that you're watching as a potential detractor 0:07:40.160 --> 0:07:41.320 to the space going forward? 0:07:42.960 --> 0:07:44.800 Yes, you know, I think that's a really good point. 0:07:44.840 --> 0:07:47.320 We do obviously need to consider when we're talking about 0:07:47.440 --> 0:07:51.480 trade tariffs. We also need to consider about what that 0:07:51.520 --> 0:07:56.280 means for pricing and potential inflationary pressures that that might 0:07:56.840 --> 0:07:59.280 cause in those pricing and obviously, you know there are 0:07:59.360 --> 0:08:04.200 going to be ceilings and limits that you know, prices 0:08:04.320 --> 0:08:07.880 may potentially reach where customers say, well, actually at that 0:08:08.000 --> 0:08:10.360 level it's too high, we're going to rain in our orders. 0:08:10.560 --> 0:08:12.360 So I think that's something that we need to watch 0:08:12.440 --> 0:08:13.120 very carefully. 0:08:13.120 --> 0:08:15.560 But obviously on the back of that, we also know 0:08:16.240 --> 0:08:19.800 that there is obviously a huge importance based on tech, 0:08:19.880 --> 0:08:22.840 based on AI, based on chips, and so you know 0:08:22.960 --> 0:08:26.440 that they are very much continued to be the future 0:08:27.480 --> 0:08:29.600 of sort of you know, where the world is going. 0:08:29.640 --> 0:08:31.280 So we need to keep that in mind when we 0:08:31.360 --> 0:08:32.959 think about, you know what. 0:08:33.080 --> 0:08:35.520 Level our company is going to say that's too far, 0:08:35.640 --> 0:08:38.400 that's too high for us right now. So whilst we 0:08:38.440 --> 0:08:40.280 will be keeping an eye on it, I don't think 0:08:40.280 --> 0:08:43.240 it's necessarily right now at a point which is causing concern, 0:08:43.280 --> 0:08:45.360 but it potentially could do in the future if we 0:08:45.440 --> 0:08:49.760 find that those inflation that those hearoffs do have inflationary impacts. 0:08:50.160 --> 0:08:52.280 Are you comfortable, though, Fiona, when you look at the 0:08:52.400 --> 0:08:55.480 valuations in the market for some of these names that 0:08:55.559 --> 0:08:57.480 the market has bid up, are you comfortable with those 0:08:57.520 --> 0:09:01.120 valuations given what you just said, Because. 0:09:00.679 --> 0:09:04.400 We've obviously had a very strong run up now we've 0:09:04.440 --> 0:09:07.360 also had a pullback since the start of the year, 0:09:07.440 --> 0:09:10.679 so I think that pullback has actually meant shown that 0:09:11.080 --> 0:09:13.679 the market is pricing in those concerns. 0:09:14.679 --> 0:09:16.480 I do think that we need to have more. 0:09:16.360 --> 0:09:22.320 Clarity before we're going to see any further increases in 0:09:22.440 --> 0:09:26.400 valuations while before we see any strong rally higher longer term, 0:09:26.480 --> 0:09:29.360 I'm still bullish on the sector. I think short term 0:09:29.520 --> 0:09:32.000 there is a potential for there to be more choppiness 0:09:32.840 --> 0:09:35.920 as we wait for those points to be clarified. 0:09:36.320 --> 0:09:39.480 That City Index senior analyst for your nursing kind of things. 0:09:39.480 --> 0:09:47.040 So much for joining US. 0:09:49.800 --> 0:09:53.400 President Trump's sweeping tariffs is said to take effect tomorrow, 0:09:53.559 --> 0:09:57.400 placing new twenty five percent levees on Canada and Mexico 0:09:57.679 --> 0:09:59.520 and an additional ten percent on China. 0:10:00.120 --> 0:10:01.439 More on the global. 0:10:01.040 --> 0:10:04.200 Tariffs impact, Christine McDaniel's senior research fellow at. 0:10:04.080 --> 0:10:05.400 The Mercada Center, joins us. 0:10:05.440 --> 0:10:07.960 Now, Christine, we've heard a lot about terrafts over the 0:10:08.000 --> 0:10:10.640 last couple of weeks. Talk to us about the scope 0:10:10.640 --> 0:10:13.680 and scale of these compared to what's been discussed in 0:10:13.720 --> 0:10:14.200 the past. 0:10:14.720 --> 0:10:18.319 So these these are much larger than what has been 0:10:18.800 --> 0:10:21.880 discussed in the past, not only in terms of magnitude 0:10:21.880 --> 0:10:24.920 of the terraffs, but also in terms of the amount 0:10:25.040 --> 0:10:28.760 of trade that it will affect. So, you know, the 0:10:28.800 --> 0:10:33.480 North American economy is a powerhouse and the US is 0:10:33.520 --> 0:10:39.280 at the center of that. It's it's a big, you know, big, 0:10:39.280 --> 0:10:41.120 big part of it. It's a big producer, it's a 0:10:41.120 --> 0:10:45.160 big consumer. We have products going back and forth across 0:10:45.160 --> 0:10:48.760 the border, you know, several times before it ends in 0:10:48.800 --> 0:10:52.000 a finished product, you know, just looking at the tech 0:10:52.040 --> 0:10:54.240 and chip sector alone, just doing some back of the 0:10:54.320 --> 0:10:58.080 envelope this morning, you know, we're talking about fifty three 0:10:58.200 --> 0:11:02.080 billion dollars in tariff's pay. So the US imports from 0:11:02.120 --> 0:11:05.440 Canada about forty three billion worth in tech and chips, 0:11:05.800 --> 0:11:09.040 and from Mexico it's about one hundred and sixty eight billion, 0:11:09.160 --> 0:11:11.720 So twenty five percent of that, you know, over fifty 0:11:11.760 --> 0:11:14.000 billion dollars in tariffs, and that's going to come. 0:11:13.920 --> 0:11:17.480 Out of out of the North American economy, you know. 0:11:17.760 --> 0:11:22.240 And so whether it's Mexico, US or Canada, you know, 0:11:22.280 --> 0:11:25.560 depending on different market factors. But it's definitely not going 0:11:25.600 --> 0:11:28.280 to lower prices for US consumers. And so it's just 0:11:28.320 --> 0:11:30.960 a matter of how much it will raise prices. And 0:11:31.000 --> 0:11:35.000 then overall, just looking at the entire North American you know, 0:11:35.040 --> 0:11:38.000 trading relationship, we're looking at two hundred and twenty seven 0:11:38.080 --> 0:11:41.320 billion in tariffs, so you know, these are not small numbers. 0:11:41.440 --> 0:11:43.080 Yeah, well, let's break it down here into some of 0:11:43.120 --> 0:11:45.560 the industry specific areas. We focused a lot on this 0:11:45.720 --> 0:11:48.960 network one kind of the bigger areas like automotives. Obviously 0:11:49.000 --> 0:11:51.560 commodities are going to be impacted as well. But in 0:11:51.600 --> 0:11:55.079 the area of technology, are there sort of direct tariffs 0:11:55.080 --> 0:11:57.520 so we should be looking at that could actually impact 0:11:58.040 --> 0:12:00.000 technology products that are crossing the border. 0:12:00.720 --> 0:12:03.000 Yeah, yes, I mean there's so so many. I mean, 0:12:03.160 --> 0:12:06.040 so look at the raw materials you know, coming from Canada, 0:12:07.240 --> 0:12:12.160 the component production that happens in some in Canada, a 0:12:12.160 --> 0:12:16.000 lot in Mexico, the assembly, testing and packaging that happens 0:12:16.080 --> 0:12:20.839 largely in Mexico. You know, that will all really hurt 0:12:21.240 --> 0:12:27.880 the pricing power of US you know, sellers, US businesses here. Uh, 0:12:28.200 --> 0:12:30.440 and it will either eat it in the profit margins 0:12:30.559 --> 0:12:33.800 or they'll pass it on to US consumers and or 0:12:34.080 --> 0:12:36.959 you know, the Canadians and Mexicans will will take a hit. 0:12:37.559 --> 0:12:39.600 I mean, we're looking at a sector where there's been 0:12:39.720 --> 0:12:41.880 what like, have a trillion to a trillion dollars of 0:12:42.320 --> 0:12:49.280 investment announced just in the US and very recently. So 0:12:49.400 --> 0:12:53.440 you know, it's the tariffs will will make it's going 0:12:53.480 --> 0:12:55.120 to be harder to get a good bang for the 0:12:55.120 --> 0:12:56.320 buck with these tariffs. 0:12:56.480 --> 0:12:58.160 Yeah, and of course for a lot of folks, so 0:12:58.200 --> 0:12:59.840 they're going to start to see those tariffs kick in 0:12:59.920 --> 0:13:02.240 or for night to night. March fourth, of course, is 0:13:02.280 --> 0:13:05.360 the deadline at least for those big ones on Mexico 0:13:05.480 --> 0:13:08.080 and Canada, additional terrifts down the road, and of course 0:13:08.120 --> 0:13:11.880 these reciprocal terrorists Christine that the President has also spoken 0:13:11.920 --> 0:13:14.160 about here, you've been on the inside. I mean, you 0:13:14.240 --> 0:13:16.400 know what goes on inside the Trade Reps Office, you 0:13:16.440 --> 0:13:18.640 know what goes inside the Department of Commerce, you know 0:13:18.720 --> 0:13:23.400 what goes on inside the ITC. Are those mechanisms for 0:13:23.559 --> 0:13:26.880 debate and more importantly for negotiation still there or is 0:13:26.920 --> 0:13:30.200 this pretty much a negotiating process that begins and ends 0:13:30.200 --> 0:13:31.120 with Trump himself? 0:13:31.600 --> 0:13:38.080 Yeah. This is a very different USTR Commerce experience, you know, 0:13:38.160 --> 0:13:43.920 than than what was under George W. Bush administration. The 0:13:45.240 --> 0:13:48.960 you know, there is an of course interagency analysis and 0:13:49.000 --> 0:13:53.160 meetings that happened. Uh but but in terms of you know, 0:13:53.200 --> 0:13:57.400 to what extent that analysis really feeds into and and 0:13:57.520 --> 0:14:00.240 can affect the president's decision making? 0:14:00.360 --> 0:14:01.480 Is you know something else? 0:14:01.679 --> 0:14:05.360 I mean, I remember with in the Bush administration, we 0:14:05.480 --> 0:14:08.160 had you know, a number of interagency meetings where we 0:14:08.200 --> 0:14:10.040 always were asked, you know, what would be the national 0:14:10.080 --> 0:14:13.720 economic effect? Is this in the national economic interest? And 0:14:14.040 --> 0:14:16.120 you know, and and the White House was always interested 0:14:16.160 --> 0:14:20.080 in the downstream effects, I mean very seriously interested, and 0:14:20.960 --> 0:14:23.880 that would often come into be a pretty big part 0:14:23.920 --> 0:14:27.560 of their decision making. You know, you don't necessarily see 0:14:27.560 --> 0:14:32.640 that with this current administration. But still early days. I 0:14:32.640 --> 0:14:34.200 mean there's still several hours. 0:14:33.880 --> 0:14:34.560 Of the day left. 0:14:35.880 --> 0:14:39.680 And and you know, Commerce Secretary of Lutnik over the 0:14:39.680 --> 0:14:43.400 weekend said the situation is fluid. That they feel apparently 0:14:43.440 --> 0:14:46.040 that Canada and Mexico has made a lot of progress 0:14:46.080 --> 0:14:49.640 on the border. That and they're very happy they've had 0:14:49.640 --> 0:14:53.600 the lowest crossing ever on the border, but they're still concerned, 0:14:53.640 --> 0:14:55.920 you know, at Faetanyel continues to come into the country, 0:14:56.480 --> 0:14:58.920 so maybe it won't be twenty five percent and it 0:14:59.000 --> 0:15:02.520 will be something less. So everybody's on the sort of 0:15:02.560 --> 0:15:05.120 a wait and see approach, which apparently is what they 0:15:05.880 --> 0:15:07.280 like people to be in that position. 0:15:07.400 --> 0:15:08.680 Well, the clock is ticking right now. 0:15:08.760 --> 0:15:11.640 Christine McDaniel over at the Mercadis Center a long career 0:15:11.680 --> 0:15:14.480 of course in Washington. As we now turn our attention 0:15:14.520 --> 0:15:17.200 to another part of the market that is affected by 0:15:17.240 --> 0:15:20.800 what's going on in Washington, and that is cryptocurrencies. Over 0:15:20.840 --> 0:15:23.440 the weekend, the President turned the truth social to announce 0:15:23.440 --> 0:15:26.360 his plans for a strategic crypto reserve, which would include 0:15:26.440 --> 0:15:30.360 lesser known digital assets like XRP and Salana. The news 0:15:30.400 --> 0:15:33.400 ignited and immediate crypto rally, a rally that has pared 0:15:33.440 --> 0:15:36.080 back quite a bit over the last few hours. Here 0:15:36.400 --> 0:15:38.440 Bill down a hire joining us right now who covers 0:15:38.440 --> 0:15:40.880 crypto for us here at Bloomberg. We have seen a 0:15:40.920 --> 0:15:42.960 bit of a turnaround in some of these coins. 0:15:42.960 --> 0:15:43.320 Well done. 0:15:43.320 --> 0:15:44.760 I wish you to point out some of the crypto 0:15:44.920 --> 0:15:48.480 stocks like Marathon and a few others a micro strategy 0:15:48.480 --> 0:15:51.280 as well, still in the green. How much stock can 0:15:51.320 --> 0:15:53.520 we put in that announcement that Trump made over the 0:15:53.640 --> 0:15:57.040 weekend about this cryptocurrency reserve as well as this big 0:15:57.040 --> 0:15:59.480 crypto summit that's coming up on Friday at the White House. 0:15:59.520 --> 0:16:01.800 I think it's really good question, and the key thing 0:16:01.840 --> 0:16:03.600 to keep in mind is that we just are lacking 0:16:03.640 --> 0:16:06.800 a ton of details. So we had the social media 0:16:06.840 --> 0:16:09.760 announcement over the weekend that mentioned these maybe we can 0:16:09.760 --> 0:16:13.800 call them lesser known coins, and later the President tweeted 0:16:13.840 --> 0:16:16.040 again to say that you know, Bitcoin and ether of 0:16:16.040 --> 0:16:18.560 course are going to be included as well. I think 0:16:18.600 --> 0:16:23.120 it's very It's not un surprising to see the initial 0:16:23.240 --> 0:16:26.040 enthusiasm leading to a rally in crisis and then sort 0:16:26.040 --> 0:16:29.480 of the comeback. It's something we've seen in cryptocurrencies in 0:16:29.520 --> 0:16:31.640 the past couple of weeks, in the past couple of months. 0:16:31.680 --> 0:16:33.560 It's sort of historically. 0:16:33.000 --> 0:16:35.120 Something that's been part of the cryptocurrency market, where you 0:16:35.120 --> 0:16:39.880 see the initial euphoria and then a drawdown following. You know, 0:16:40.000 --> 0:16:42.440 maybe once things settle down a little bit and people 0:16:42.480 --> 0:16:44.960 start to look at the announcement a bit more skeptically, 0:16:45.200 --> 0:16:47.400 But I do think that we definitely need to just 0:16:47.880 --> 0:16:52.040 have much more information on the strategic Crypto Reserve before 0:16:52.240 --> 0:16:54.840 we can make any solid proclamations. 0:16:56.000 --> 0:16:58.800 Speaking of skepticism built on I here in Washington, some 0:16:58.880 --> 0:17:02.680 Republican lawmakers who are allies of Trump have actually pushed 0:17:02.720 --> 0:17:06.800 back on the notion of using taxpayer dollars to fund 0:17:07.200 --> 0:17:12.080 risky assets like crypto. So this idea of a crypto reserve, 0:17:12.359 --> 0:17:14.360 what would that look like in practice? I know it's 0:17:14.359 --> 0:17:16.440 still a bit theoretical, but could you kind of break 0:17:16.480 --> 0:17:17.399 that down for us a. 0:17:17.400 --> 0:17:20.160 Bit, right, that's one of the key considerations, I think. 0:17:20.200 --> 0:17:21.600 And if we think back. 0:17:21.760 --> 0:17:26.560 To early January when the initial announcement about the Strategic 0:17:26.600 --> 0:17:30.359 Reserve was made, I think the administration had said something 0:17:30.560 --> 0:17:35.879 like it would be funded with seizures, lawful seizures, so 0:17:36.080 --> 0:17:40.600 you know, whenever there's an FBI raid for example, or 0:17:40.600 --> 0:17:43.520 something along those lines, because the government does have crypto 0:17:43.600 --> 0:17:47.520 holdings from such activities and such actions. So I think 0:17:47.520 --> 0:17:50.080 the initial idea that was that part of that would 0:17:50.119 --> 0:17:52.879 be coming from things like that, But we just we 0:17:53.000 --> 0:17:55.160 just don't know, and I think some of the skepticism 0:17:55.200 --> 0:17:57.520 that we've seen in the wake of this weekend's announcement 0:17:58.160 --> 0:18:00.520 does have to deal with that where people are where, 0:18:00.560 --> 0:18:03.720 where actually would the funding be coming from. 0:18:04.600 --> 0:18:06.800 That's Bloomberg's with Donna Halik. Thank you so much for 0:18:06.880 --> 0:18:07.359 joining us. 0:18:07.720 --> 0:18:11.320 Coming up a Texas startup landed spacecraft on the Moon. 0:18:11.520 --> 0:18:13.120 We'll discuss what this means. 0:18:13.000 --> 0:18:16.640 For the future of space exploration and the US position 0:18:16.840 --> 0:18:17.720 in the space race. 0:18:17.960 --> 0:18:33.280 This is Bloomberg, all. 0:18:33.280 --> 0:18:36.760 Right, shares of companies in the space race. We're actually 0:18:36.800 --> 0:18:39.159 on a pretty wild ride today as well. That was 0:18:39.200 --> 0:18:43.119 after a private company called Firefly Aerospace successfully landed its 0:18:43.160 --> 0:18:46.159 first robotic spacecraft on the Moon. That was over the 0:18:46.160 --> 0:18:48.879 weekend of partnership with NASA that had taking it on 0:18:48.920 --> 0:18:52.840 its journey on January fifteenth. The spacecraft carrying ten tools 0:18:52.880 --> 0:18:55.840 and experiments built by NASA, including a drill that would 0:18:55.880 --> 0:18:58.800 bury itself into the lunar soil to test the temperature. 0:18:58.880 --> 0:19:01.480 There you can see some of the other stocks here 0:19:01.520 --> 0:19:04.640 related to Firefly. Moving on that news, including rocket Lab 0:19:04.720 --> 0:19:07.840 and AST Space Mobile. Lauren Grush joining us right now 0:19:07.840 --> 0:19:09.840 to talk a little bit more about what we learned, 0:19:09.840 --> 0:19:11.960 and this was pretty momentous, only the second time, I 0:19:11.960 --> 0:19:16.240 believe in history we've got a commercial spacecraft successfully touched 0:19:16.240 --> 0:19:18.199 down on the Moon, of course a lunar One of 0:19:18.200 --> 0:19:21.320 the stocks we showed their intuitive machines did it, I 0:19:21.359 --> 0:19:23.240 think sometime back last year. 0:19:23.280 --> 0:19:23.480 Here. 0:19:23.600 --> 0:19:25.879 What was his significance of what happened over the weekend, 0:19:26.160 --> 0:19:29.800 specifically when it came to Firefly lorn right, Well, you. 0:19:29.880 --> 0:19:32.280 Just explained it right there. This is only the second 0:19:32.280 --> 0:19:36.080 time a commercial company has landed a vehicle intact on 0:19:36.119 --> 0:19:39.720 the lunar surface. But something special about Firefly's landing is 0:19:39.720 --> 0:19:43.040 they're kind of hailing it as the first fully successful 0:19:43.119 --> 0:19:47.080 landing because even though Intuitive Machines did land their lander 0:19:47.160 --> 0:19:50.040 for the first time last year, unfortunately that lander did 0:19:50.080 --> 0:19:52.359 tip over when it reached the surface. It was coming 0:19:52.359 --> 0:19:55.560 into fast and so it had to end its mission prematurely. 0:19:55.880 --> 0:19:58.280 But with Firefly, it looks like they stuck the landing 0:19:58.400 --> 0:20:01.600 upright and they even got some really great pictures from 0:20:01.640 --> 0:20:04.359 the lander right as soon as they made it to 0:20:04.440 --> 0:20:07.439 the surface. So from all we've seen so far, it 0:20:07.480 --> 0:20:09.840 looks like a pretty successful mission. 0:20:09.840 --> 0:20:12.760 Through and through Lauren, how much room is there for 0:20:13.119 --> 0:20:16.720 startups that are operating in the space srace to really 0:20:16.800 --> 0:20:18.600 get in here because a lot of the news that 0:20:18.640 --> 0:20:20.200 we hear is around SpaceX. 0:20:20.720 --> 0:20:20.960 Yeah. 0:20:20.960 --> 0:20:25.600 Absolutely, I mean this specific mission, Blue Ghost was part 0:20:25.600 --> 0:20:29.040 of an overall NASA effort to help fund private and 0:20:29.080 --> 0:20:33.040 public companies to develop lunar landers to reach the surface 0:20:33.080 --> 0:20:34.840 of the Moon. So this is something that NASA really 0:20:34.880 --> 0:20:38.600 wants a very diverse ecosystem of commercial companies, and so 0:20:38.680 --> 0:20:43.560 they've been partially funding landers to transport instruments and experiments 0:20:43.600 --> 0:20:46.480 and tools to the lunar surface to help learn more 0:20:46.600 --> 0:20:49.399 about the Moon. As part of its ongoing efforts to 0:20:49.440 --> 0:20:52.199 eventually land humans on the surface of the Moon. So 0:20:52.600 --> 0:20:53.680 this is what NASA wants. 0:20:53.680 --> 0:20:54.520 They want more. 0:20:54.359 --> 0:20:58.040 Companies than just SpaceX, you know, getting all the headlines, 0:20:58.320 --> 0:21:01.040 and so far it looks like their while they've had 0:21:01.080 --> 0:21:04.280 some mixed success, are starting to have more success as well. 0:21:04.720 --> 0:21:07.520 That's Bloomberg's Lauren Gresh. Thanks for joining us. What are 0:21:07.560 --> 0:21:07.919 you looking at? 0:21:08.000 --> 0:21:08.280