WEBVTT - Alibaba Shares Soar, Scott Bessent's Musk Relationship 0:00:02.520 --> 0:00:09.800 Bloomberg Audio Studios, podcasts, radio news from the heart of 0:00:09.880 --> 0:00:15.600 where innovation, money and power collide in Silicon Valley and beyond. 0:00:16.040 --> 0:00:40.320 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:35.080 --> 0:00:35.720 Live from New York. 0:00:35.760 --> 0:00:39.000 I'm Caroline Hyde and I'm Jackie Devalas in San Francisco. 0:00:39.159 --> 0:00:40.879 This is Bloomberg Technology coming up. 0:00:40.920 --> 0:00:44.920 Ali Baba sches saw after AI demand and e commerce rebound, 0:00:45.120 --> 0:00:48.960 they drive revenues for the Chinese giant. Plus US Treasury 0:00:48.960 --> 0:00:51.960 Secretary Scott Bessant weighs in on AI productivity and his 0:00:52.080 --> 0:00:56.160 relationship with Elon Musk and the CEO of Carlvana joins 0:00:56.160 --> 0:00:58.600 as the stock sinks on lower gross profit per vehicle 0:00:58.680 --> 0:01:00.400 and it's the Chinese names that do you want Once 0:01:00.400 --> 0:01:02.920 again today Ali Baba absolutely soaring at one point up 0:01:02.920 --> 0:01:05.000 more than thirteen percent. Were up nine percent at the 0:01:05.000 --> 0:01:08.600 moment on the ADRs, the American Depository receipts really AI 0:01:08.760 --> 0:01:12.600 demand cloud seeing growth of thirteen percent, seeing e commerce 0:01:12.600 --> 0:01:15.039 come back as they charge more fees. Overall, we want 0:01:15.040 --> 0:01:17.319 to dig into it with Yuchunsen who joins us for 0:01:17.480 --> 0:01:20.680 more and look, this seems to be Ali Baba coming 0:01:20.720 --> 0:01:22.800 out of the doldrums of the past years and the 0:01:22.840 --> 0:01:23.920 regulatory pushback. 0:01:24.680 --> 0:01:26.240 Yes, right, exactly. 0:01:26.480 --> 0:01:29.720 So today is the big earning day for Ali Baba, 0:01:29.920 --> 0:01:33.880 and I would say it delivered very strong and solid earnings. 0:01:33.920 --> 0:01:36.800 I'll come if you look like it feeds on the 0:01:36.880 --> 0:01:41.640 revenues right from the top line. Reported a revenue growth 0:01:41.640 --> 0:01:44.800 which is the fastest it was in a year, and 0:01:44.840 --> 0:01:48.800 it's we're above the world's free analyst estimates. And it 0:01:48.920 --> 0:01:52.880 also comes from the improvements from two of its most 0:01:52.960 --> 0:01:56.560 important segments. One is e commerce and the second is 0:01:56.600 --> 0:01:59.840 the cloud business. So to drill down a bit that 0:02:00.080 --> 0:02:02.880 the e commerce apparently is the bread and butter and 0:02:03.000 --> 0:02:07.279 helped by the overall recovery of the Chinese consumption trend, 0:02:07.520 --> 0:02:08.920 but also the AI. 0:02:09.120 --> 0:02:10.480 The cloud business is. 0:02:10.400 --> 0:02:13.800 Really the highlight here because apparently lots of the market 0:02:13.919 --> 0:02:17.960 sentiment or interests have been going into how Alibab are 0:02:18.000 --> 0:02:21.240 going to deliver right on its AI strategy, and the 0:02:21.280 --> 0:02:24.520 cloud is where it's see where it houses the EAI 0:02:24.639 --> 0:02:29.119 features Q one and different initiatives it has, so there 0:02:29.680 --> 0:02:34.119 you know, Ali Baba's cloud service also up was up 0:02:34.280 --> 0:02:36.200 like thirteen percent on a. 0:02:36.280 --> 0:02:37.840 Year over year basis. 0:02:38.040 --> 0:02:42.480 Again, it's really impressive ernest print, and the investors was 0:02:42.880 --> 0:02:46.320 sharing all across the board on the financial print. 0:02:46.960 --> 0:02:49.400 What do we know about how much the company expects 0:02:49.400 --> 0:02:52.880 to invest in cloud and in artificial intelligence to really 0:02:53.040 --> 0:02:54.160 keep this boost going. 0:02:54.560 --> 0:02:56.959 Yeah, that's a really good question and it's a question 0:02:57.120 --> 0:03:00.639 that all analysts was asking right on Ernie's call. So 0:03:00.720 --> 0:03:03.799 the CEO ed e Wu stated that he's going to 0:03:04.000 --> 0:03:08.919 putting more money in AI infrastructure in the next three 0:03:09.000 --> 0:03:11.799 years and will be more than it did over the 0:03:11.840 --> 0:03:12.720 past decades. 0:03:12.760 --> 0:03:14.840 So that's a really big commitment. 0:03:15.480 --> 0:03:20.279 The company keeps saying that a AGI, which is artificial 0:03:20.360 --> 0:03:24.560 general intelligence, is going to be the primary objective for 0:03:24.639 --> 0:03:26.440 the company going forward. 0:03:26.520 --> 0:03:27.079 So that's a. 0:03:27.120 --> 0:03:31.040 Strong boost, you know, to the sentiment because if we 0:03:31.160 --> 0:03:35.040 take a look back only about stock today of ten percent, 0:03:35.120 --> 0:03:38.360 but year today is of more than sixty percent, and 0:03:38.440 --> 0:03:42.280 it's mostly driven by the AI hope that the market 0:03:42.400 --> 0:03:45.000 is giving the company. Right following on the right of 0:03:45.080 --> 0:03:47.440 Deep Sea. So now this is a moment that is 0:03:47.480 --> 0:03:50.600 shown that the fundamentals is back in it. And then 0:03:50.880 --> 0:03:54.400 on the earnest outlooker social that sentiment. 0:03:54.520 --> 0:03:57.080 Chi and Chen and all things Talibaba and the Chinese 0:03:57.120 --> 0:04:00.320 stock rally let's talk about how the flip side is affected. 0:04:00.400 --> 0:04:03.320 It calls the Deep Seek impact on AI investments here 0:04:03.320 --> 0:04:05.040 in the US as well. Auca Kolf's with us, but 0:04:05.080 --> 0:04:07.280 Photio manager at Alga. And what's really interesting is you 0:04:07.680 --> 0:04:09.720 video is a key name, Microsoft is a key name. 0:04:10.120 --> 0:04:14.440 All of these refocuses and recalibrations of AI investment whether 0:04:14.440 --> 0:04:16.440 it's worthwhile, has anything changed for you? 0:04:16.920 --> 0:04:17.560 Absolutely not. 0:04:17.640 --> 0:04:20.279 If anything, the amount of investment that's going to go 0:04:20.400 --> 0:04:24.400 into the ground is going to accelerate, and in part 0:04:24.440 --> 0:04:28.279 because what deep Seek showed us is that, you know, 0:04:28.320 --> 0:04:30.839 you can start building these models and it doesn't cost 0:04:30.920 --> 0:04:35.000 that much as long as you have a foundational model 0:04:35.040 --> 0:04:40.240 to build upon, and therefore adoption rate should skyrocket. You know, 0:04:40.320 --> 0:04:43.560 you saw just yesterday, you know, or just this morning 0:04:43.600 --> 0:04:48.880 Nebuus reported that there the usage of their data centers 0:04:48.920 --> 0:04:51.200 actually he's skyrocketed post Deep Seek. 0:04:51.640 --> 0:04:53.200 So clearly there is. 0:04:53.200 --> 0:04:56.800 More demand for something that is cheaper when it's increasing productivity. 0:04:57.880 --> 0:04:58.240 Anker. 0:04:58.360 --> 0:05:03.880 We're also seeing signaling from Washington that lawmakers JD. Van's 0:05:03.880 --> 0:05:08.800 President Trump really trying to support AI infrastructure, and as 0:05:08.800 --> 0:05:11.920 it relates to tariffs, because chips are now kind of 0:05:12.000 --> 0:05:14.000 within that discussion. 0:05:14.520 --> 0:05:15.200 You know, it's. 0:05:15.000 --> 0:05:20.080 Intended to encourage domestic production, but that manufacturing is incredibly complex, 0:05:20.120 --> 0:05:22.719 and you, as a portfolio manager, I'm curious if you 0:05:22.839 --> 0:05:26.640 find that assumption risky. Could that backfire in a way 0:05:26.640 --> 0:05:30.040 that does lead to higher prices ultimately for the companies 0:05:30.160 --> 0:05:31.200 and for consumers. 0:05:31.720 --> 0:05:34.839 Yeah, So the thing is on if you look at 0:05:34.960 --> 0:05:38.000 the cost of a chip relative to the cost of 0:05:38.040 --> 0:05:41.520 the product, it's in fact a very small percentage of 0:05:41.520 --> 0:05:43.719 the product. So if you look at Nvidia's gross margins, 0:05:44.680 --> 0:05:47.200 you know, the cogs or what is going to TSMC 0:05:47.440 --> 0:05:50.039 is only you know, ten percent of the revenue. If 0:05:50.080 --> 0:05:53.280 that so, if you take a twenty five percent tariff 0:05:53.320 --> 0:05:57.320 on the chips, you're only increasing the price by you know, 0:05:57.400 --> 0:06:01.320 two and a half percent because the the fundamental like 0:06:01.400 --> 0:06:05.320 cogs are a lot lower than people think. So is 0:06:05.360 --> 0:06:09.640 it very risky to tariff chips. I don't think it 0:06:09.680 --> 0:06:13.920 is in terms of the inflationary effect. I do think that, 0:06:14.360 --> 0:06:16.800 you know, the impact is we really do need to 0:06:16.839 --> 0:06:22.600 bring more manufacturing on shore. That is non negotiable, and 0:06:22.680 --> 0:06:24.920 just for our national security, that's what we need to do. 0:06:25.520 --> 0:06:27.400 I love that you bring us that breakdown of really 0:06:27.400 --> 0:06:30.400 what it means from a price perspective with Chip Harris, 0:06:30.760 --> 0:06:32.800 but bring us there for your expertise, And what do 0:06:32.800 --> 0:06:35.480 you think TSMC is going to start manufacturing more here 0:06:35.480 --> 0:06:38.880 in the US? Like there's been ongoing reporting around whether 0:06:38.880 --> 0:06:41.120 they do a deal with Intel, many saying that's not 0:06:41.200 --> 0:06:42.799 going to happen if you've got to push back against 0:06:42.839 --> 0:06:47.400 foreign ownership of companies alone foreign relationships here in the US. 0:06:48.000 --> 0:06:51.479 So a little known fact, perhaps is that Morris Chang, 0:06:51.520 --> 0:06:55.080 who is the founder of TSMC, is in fact an 0:06:55.120 --> 0:07:00.400 American citizen. Right, So TSMC is a Taiwanese company that 0:07:01.200 --> 0:07:05.480 was born of an American citizen who moved to Taiwan 0:07:05.560 --> 0:07:08.279 after studying in the US and working here for a 0:07:08.279 --> 0:07:10.600 long time. So I would argue, in fact that it 0:07:10.680 --> 0:07:13.320 might be kind of an American slash Taiwanese company. 0:07:14.640 --> 0:07:16.640 So the little known fact I wanted to bring up. 0:07:16.680 --> 0:07:22.000 But you know, I do think that the Intel Taiwan 0:07:22.160 --> 0:07:26.320 semi tie up is a necessity, and in part because 0:07:26.680 --> 0:07:29.080 where Intel is today is not a function of this 0:07:29.200 --> 0:07:32.520 management team or the previous management team. It is a 0:07:32.560 --> 0:07:36.400 function of some strategic kind of errors that were made 0:07:37.000 --> 0:07:40.040 fifteen years ago that have carried on to the life 0:07:40.040 --> 0:07:44.760 cycle of Intel and catching up to where TSMC is is. 0:07:45.000 --> 0:07:49.520 Would I would call a low probability event, And so 0:07:50.400 --> 0:07:53.360 you know, for our national security, I do think we 0:07:53.480 --> 0:07:55.440 have a footprint of fabs in the US. 0:07:55.800 --> 0:07:57.120 Those are Intel fabs. 0:07:57.840 --> 0:08:01.720 Should they not be somehow handed to TSM that actually 0:08:01.760 --> 0:08:03.200 knows how to manufacture it. 0:08:03.200 --> 0:08:04.840 It solves a lot of problems. 0:08:05.320 --> 0:08:08.480 It solves the capital intensity that TSM has to put 0:08:08.520 --> 0:08:11.360 into the ground in the US, which is a big 0:08:11.440 --> 0:08:14.840 hurdle for them. It solves a national security problem of 0:08:14.880 --> 0:08:19.320 bringing more capacity to the US. It solves Intel's problem 0:08:19.480 --> 0:08:23.760 of not quite knowing what to do because they're struggling 0:08:23.840 --> 0:08:27.120 to catch up. So to me, it feels like a 0:08:27.160 --> 0:08:32.120 really win win situation for TSM to actually take ownership 0:08:32.160 --> 0:08:34.040 of the of the Intel fabs. 0:08:34.080 --> 0:08:36.199 I mean, these all reports, but would you be buying 0:08:36.240 --> 0:08:39.000 in on these reports or these potential win win scenarios. 0:08:40.920 --> 0:08:44.600 Look, I think there can be many flavors that it 0:08:44.640 --> 0:08:46.040 has to suit all parties. 0:08:47.240 --> 0:08:49.040 Do I think there's some version of this. 0:08:49.480 --> 0:08:52.320 I think it's logical for it to happen, and therefore, yes, 0:08:53.200 --> 0:08:55.800 it is really the only solution that we have. 0:08:57.920 --> 0:09:00.800 How do you feel about the ecosystem of chip makers. 0:09:00.800 --> 0:09:04.640 TSMC is a great example of perhaps these plans to 0:09:04.679 --> 0:09:07.160 bring more plans to the US solves one problem bringing 0:09:07.200 --> 0:09:09.200 domestic production here in the US, but at the same 0:09:09.240 --> 0:09:11.680 time it also increases that concentration in one player. 0:09:11.840 --> 0:09:12.800 How do you feel about that? 0:09:13.360 --> 0:09:17.000 So I would be focused more so on the fact 0:09:17.080 --> 0:09:19.599 that if you bring it to the US, the ecosystem 0:09:19.640 --> 0:09:22.480 in the US actually gets stronger. One of the biggest 0:09:22.480 --> 0:09:24.480 problems right now is we don't have the engineers, We 0:09:24.520 --> 0:09:27.160 don't necessarily have the supply chain. Therefore it costs too 0:09:27.240 --> 0:09:32.680 much as people bring manufacturing into the US. And the 0:09:32.720 --> 0:09:35.480 first step in this is that we can allow TSM 0:09:35.520 --> 0:09:40.040 to build a sizeable footprint. Intel is about twelve percent 0:09:40.080 --> 0:09:44.160 of the world's manufacturing capacity. Why not utilize that footprint 0:09:44.400 --> 0:09:49.160 to build the US engineering ecosystem which has slowly deteriorated 0:09:49.200 --> 0:09:50.520 over the last three decades. 0:09:51.679 --> 0:09:54.760 Speaking about talent, that's kind of one of the biggest questions. 0:09:54.840 --> 0:09:58.680 Do we have a pipeline of researchers both kind of 0:09:58.679 --> 0:10:01.560 on the manufacturing side as for the software. Are you 0:10:01.640 --> 0:10:05.600 concerned at all about where we are in that landscape 0:10:05.640 --> 0:10:06.400 compared to China? 0:10:07.440 --> 0:10:10.840 Yeah, Look, I think that China is very innovative, but 0:10:10.960 --> 0:10:14.200 so are we. And over the last I would say, 0:10:14.280 --> 0:10:17.280 you know, two decades we have seen a dearth of 0:10:17.360 --> 0:10:23.439 talent graduating in the more tech fields that are not software, 0:10:24.120 --> 0:10:26.640 and we have to we have to write that ship. 0:10:27.760 --> 0:10:31.200 You know, I graduated in material science and engineering, you know, 0:10:31.240 --> 0:10:36.560 two decades ago, and you know we need to kind 0:10:36.559 --> 0:10:41.480 of start that engine again because really we. 0:10:41.960 --> 0:10:43.920 Do need to build that in the US. So do 0:10:44.000 --> 0:10:44.880 I worry about it. 0:10:44.920 --> 0:10:49.800 I think it's an effort that needs to be pushed on. 0:10:51.120 --> 0:10:54.000 That's Anchor Crawford, portfolio manager at Alder. 0:10:54.080 --> 0:10:54.800 Thanks so much. 0:11:02.800 --> 0:11:04.360 Can you just describe what it's like to work with 0:11:04.400 --> 0:11:07.280 someone like Elon Musk, someone as successful in American business? 0:11:07.720 --> 0:11:09.000 Just what's that like day to day? 0:11:09.480 --> 0:11:15.480 Yeah, Look, Elon Musk, like Stan Druckenmoer, like I always 0:11:15.559 --> 0:11:17.080 compare the great. 0:11:16.840 --> 0:11:18.240 Businesspeople to great athletes. 0:11:18.280 --> 0:11:22.880 They keep their eye on the prize, whether that whether 0:11:22.960 --> 0:11:29.400 he's the Messy or Michael the Messy or Michael Jordan. 0:11:30.480 --> 0:11:35.160 He is focused and his energy level is unbelievable and 0:11:35.880 --> 0:11:38.920 he's gotten to where he has because everything's on the table. 0:11:40.000 --> 0:11:42.520 There's always this examination of why are we doing it? 0:11:42.559 --> 0:11:44.920 This way, why are we doing what we're doing? And 0:11:45.000 --> 0:11:48.679 most of all, if something's not working, let's fix it. 0:11:48.720 --> 0:11:51.719 You know, Sam Oltman was on Bloomberg TV just two 0:11:51.760 --> 0:11:54.080 weeks ago and called Elon Musk insecure. 0:11:54.840 --> 0:11:55.760 Do you view him as much? 0:11:56.559 --> 0:12:01.360 I'm not going to get into the technic magnet the. 0:12:03.280 --> 0:12:06.400 Kind of slap best secondly best, and I would say 0:12:06.400 --> 0:12:09.439 that's wise. He is drawing criticism, though, when you and 0:12:09.480 --> 0:12:11.920 the administration come out and pick out the various things 0:12:11.960 --> 0:12:14.120 where money is being wasted on, I think we can 0:12:14.200 --> 0:12:16.560 all agree that that's a waste of money. Well, there 0:12:16.600 --> 0:12:18.840 might be some concern is the way that some people 0:12:18.840 --> 0:12:21.280 are being laid off in Washington that lacks some dignity? 0:12:21.480 --> 0:12:22.800 Could you comment on that today? 0:12:23.320 --> 0:12:28.920 Look, I think that there are many fine public servants, 0:12:30.679 --> 0:12:35.640 but I think that you know, I've been in Washington 0:12:35.760 --> 0:12:39.960 three or four weeks now, and there's a real bias 0:12:40.040 --> 0:12:43.160 towards the status quo. And if you don't move quickly, 0:12:43.960 --> 0:12:50.120 then then the lobbyists get involved, the entrenched interest, and 0:12:50.360 --> 0:12:54.640 it's impossible to get anything done. So, you know, anyone 0:12:54.760 --> 0:13:00.880 who has experienced in financial hardship, any kind of the 0:13:01.320 --> 0:13:05.080 mental duress, you know, I'm sorry for them, but that's 0:13:05.120 --> 0:13:09.760 also what the average American experiences every day most of us. 0:13:09.800 --> 0:13:12.319 You know, you all come to work, you want good ratings, 0:13:13.160 --> 0:13:19.040 you know you get a performance readout. You really push forward. 0:13:19.440 --> 0:13:23.080 And I can tell you that in Treasury, I have 0:13:23.200 --> 0:13:27.880 been so impressed with the quality of the permanent staff 0:13:28.440 --> 0:13:32.319 and I want to get everybody back to the office 0:13:32.600 --> 0:13:34.439 and a lot of people are on board with that. 0:13:35.360 --> 0:13:39.120 US Treasury Secretary Scott Besson Bloomgs avelience earlier today. I 0:13:39.200 --> 0:13:41.640 speak it all down in Bloomgs Mike Shepard in Washington. Now, 0:13:42.080 --> 0:13:44.360 one are the key takeaways. It was a wide ranging conversation, 0:13:45.679 --> 0:13:45.960 well it. 0:13:46.000 --> 0:13:49.280 Really was, but the most segment of that conversation, in 0:13:49.320 --> 0:13:53.560 a way, was quite illuminating. We really saw once again, 0:13:54.080 --> 0:13:57.079 as in our first interview with the Treasury Secretary about 0:13:57.080 --> 0:14:00.880 two weeks ago, no day life between Scott Besson and 0:14:01.000 --> 0:14:04.200 Elon Musk. Musk, of course, has been tasked with this 0:14:04.320 --> 0:14:08.360 government efficiency push. Donald Trump asked him to lead this. 0:14:08.920 --> 0:14:11.440 It has caused some controversy for the way they have 0:14:12.120 --> 0:14:15.880 powered through agency by agency, moving to even shut down 0:14:15.920 --> 0:14:20.680 some entities like USAID altogether. And it is generating. As 0:14:20.680 --> 0:14:22.920 we saw this morning, some negative poll numbers in the 0:14:23.040 --> 0:14:27.080 Washington Post and IPSO survey a majority of Americans were 0:14:27.320 --> 0:14:31.400 uncomfortable with how this was working in terms of agencies 0:14:31.440 --> 0:14:34.200 being shut down like that. At the same time, we 0:14:34.280 --> 0:14:38.880 saw Scott Besson really lavishing praise on Elon Musk, likening 0:14:38.960 --> 0:14:42.280 him to a great athlete for the focus and energy 0:14:42.280 --> 0:14:44.760 that he brings and the urgency of this moment that 0:14:44.800 --> 0:14:47.400 if they want to make change, they have to move quickly. 0:14:47.560 --> 0:14:49.680 And Carol, it's important for us to remember that Scott 0:14:49.720 --> 0:14:54.080 Besson's own agenda of reducing the deficit depends in large 0:14:54.120 --> 0:14:57.160 measure on the success of Elon Musk with Doge in 0:14:57.240 --> 0:14:59.920 trying to find those kinds of savings and cost rod 0:15:00.000 --> 0:15:03.480 reductions across government. And he also wants Elon Musk to 0:15:03.520 --> 0:15:06.320 help in other ways too, and that includes pairing back 0:15:06.400 --> 0:15:09.040 some of the regulations that he sees as an impediment 0:15:09.080 --> 0:15:09.800 to the economy. 0:15:10.680 --> 0:15:13.640 Mike, what did Besson say about where these Doze savings 0:15:13.680 --> 0:15:14.480 will actually go. 0:15:16.200 --> 0:15:18.720 Well, you know, he and the President have talked about 0:15:18.760 --> 0:15:23.400 trying to get them somehow returned to the taxpayers, but 0:15:23.840 --> 0:15:26.560 so far the math really isn't holding up. We had 0:15:26.560 --> 0:15:30.400 great reporting from our colleague Andre Tartar yesterday showing that 0:15:30.880 --> 0:15:34.080 while Doze has claimed fifty five billion dollars in savings 0:15:34.080 --> 0:15:38.080 so far, the numbers on the group's website itself show 0:15:38.280 --> 0:15:41.160 something closer to sixteen billion. And you have to have 0:15:41.280 --> 0:15:45.080 that yet again because one of the contracts was mistakenly 0:15:45.160 --> 0:15:50.120 listed as eight billion rather than eight million. So when 0:15:50.160 --> 0:15:53.560 you break that down, it's about eleven dollars per taxpayer 0:15:53.760 --> 0:15:57.000 as opposed to the five thousand per head that Donald 0:15:57.040 --> 0:15:59.600 Trump and Elon Musk have possibly been floating. 0:16:00.240 --> 0:16:01.400 So we have to see. 0:16:01.440 --> 0:16:03.720 They're only a month in, as the Treasury Chief was 0:16:04.280 --> 0:16:07.240 keen to point out, but we have a long way 0:16:07.240 --> 0:16:09.360 to go before we're actually going to start seeing some 0:16:09.400 --> 0:16:12.680 of this money go back to the taxpayers. 0:16:12.720 --> 0:16:13.800 Both the Treasury Chief and. 0:16:13.840 --> 0:16:15.960 Must have said Mike, many have wondered when the math 0:16:16.000 --> 0:16:19.560 is going to start mathing on AAI investment and productivity gains. 0:16:19.560 --> 0:16:21.320 In fact, Scott Bessen didn't weigh in on that. 0:16:21.400 --> 0:16:25.720 Just take a listen the US productivity. I think that 0:16:25.760 --> 0:16:28.280 I've been meeting with a lot of the tech leaders lately, 0:16:28.600 --> 0:16:31.680 and I think we are very close to the cusp 0:16:31.880 --> 0:16:36.040 of this AI finally coming into the productivity numbers. 0:16:36.240 --> 0:16:37.160 Thirty seconds left. 0:16:37.160 --> 0:16:39.120 What did you make of the view on AI helping 0:16:39.160 --> 0:16:40.200 productivity in the US? 0:16:41.400 --> 0:16:43.160 Caro, He is trying to answer one of the big 0:16:43.240 --> 0:16:46.800 questions out there for investors and even companies themselves, when 0:16:46.840 --> 0:16:49.400 are we going to see this breakthrough in terms of 0:16:49.440 --> 0:16:54.080 a profit generating real game changing use case for it. 0:16:54.160 --> 0:16:57.000 He is signaling though, that there could be some productivity gains. 0:16:57.160 --> 0:16:59.960 We have seen evidence of this already at Meta, for instance, 0:17:00.040 --> 0:17:03.480 the way they've incorporated into their own business structure of 0:17:03.520 --> 0:17:08.400 finding efficiency, finding gains helping profitability there. But he did 0:17:08.440 --> 0:17:11.240 not elaborate, and it would be interesting to hear him 0:17:11.560 --> 0:17:13.560 lay out more of a case down the road. 0:17:14.440 --> 0:17:17.320 That's Bloomberg's Mike Shephard, thanks for joining us. It's not 0:17:17.560 --> 0:17:20.320 just Scott Wesson talking about Musk. The CEO of Boeing 0:17:20.359 --> 0:17:22.879 came out this morning saying Elon Musk and his Dosee 0:17:22.920 --> 0:17:26.040 team are helping the Planemaker work through bottlenecks that have 0:17:26.119 --> 0:17:28.679 caused the next fleet of Air Force one jets to 0:17:28.760 --> 0:17:33.120 fall years behind schedule. This comes as President Donald Trump 0:17:33.200 --> 0:17:36.439 has repeatedly criticized the company for failing to deliver the 0:17:36.480 --> 0:17:38.840 jets on time, Caroline coming. 0:17:38.720 --> 0:17:39.240 Up, Jackie. 0:17:39.320 --> 0:17:42.720 Apple launches and you know end smallphone. We'll dig in next. 0:17:42.720 --> 0:18:27.439 This is Britmbag Technology. 0:18:37.560 --> 0:18:41.359 Apple introduce a new low and smartphone yesterday, the iPhone 0:18:41.400 --> 0:18:44.359 sixteen E, which will go on sale next week February 0:18:44.359 --> 0:18:47.080 twenty eighth. This in an effort to revive the company's 0:18:47.119 --> 0:18:50.199 growth after a slow holiday season. Let's bring in Nabila 0:18:50.280 --> 0:18:53.879 Pope All, senior research director at the International Data Corporation 0:18:54.440 --> 0:18:58.200 also known as the IDC. Nabila, this is a great upgrade, 0:18:58.280 --> 0:19:01.920 but it's also far pricier and lower price models from 0:19:01.920 --> 0:19:04.800 the past. How well are you expecting this to sell? 0:19:06.440 --> 0:19:06.639 You know? 0:19:06.720 --> 0:19:09.600 I think that that's a really great reason why Apple 0:19:09.680 --> 0:19:13.800 rebranded it from the SE to the sixteen E, right 0:19:13.840 --> 0:19:16.639 because they don't want it. They don't want consumers to 0:19:16.680 --> 0:19:19.919 think this is a more expensive SE device because the 0:19:19.960 --> 0:19:24.119 previous sees have were at four twenty nine and prior 0:19:24.119 --> 0:19:26.960 to that at three ninety nine, and this is at 0:19:27.080 --> 0:19:29.840 you know, significantly more expensive, but they wanted to think 0:19:29.840 --> 0:19:32.840 of it consumers to think of it as a much 0:19:33.480 --> 0:19:36.760 less expensive sixteen device. So we think that given all 0:19:36.800 --> 0:19:39.159 the bells and whistles this is coming with makes us 0:19:39.160 --> 0:19:43.840 a significant upgrade from all the different you know specs. 0:19:43.840 --> 0:19:47.520 This is coming with which much much greater their latest 0:19:47.600 --> 0:19:52.439 chip set, bigger screen size and all the different you know, 0:19:52.520 --> 0:19:57.280 the uh and more. They're you know, the biggest, they're 0:19:57.520 --> 0:20:00.560 you know, the most innovative modem. Like I think that's 0:20:00.600 --> 0:20:03.080 the biggest news right now. So I think that's what 0:20:03.119 --> 0:20:05.600 they want the consumers to focus on. So we really 0:20:05.680 --> 0:20:09.880 expect you know, traditionally or rather they're in their previous 0:20:10.000 --> 0:20:13.280 se devices right of their budget phones, they have been 0:20:13.280 --> 0:20:17.720 doing about anywhere from five to eight percent in their launcher, 0:20:18.440 --> 0:20:20.960 and we expect this device to do. Actually, this is 0:20:20.960 --> 0:20:22.920 going to be the bigger news, you know than the 0:20:23.040 --> 0:20:25.359 in fact even the launch of the sixteen device. And 0:20:25.440 --> 0:20:27.840 it comes with Apple Intelligence to top it off. So 0:20:27.880 --> 0:20:30.680 for a budget device, we expected to do really well. 0:20:30.880 --> 0:20:35.760 Nebula talk about that C one chipset and the fact 0:20:35.840 --> 0:20:38.600 that they're moving away from Qualcom. How important a road 0:20:38.640 --> 0:20:41.360 test is this for the seventeens. 0:20:42.280 --> 0:20:43.640 And I think that this is you know, I think 0:20:43.680 --> 0:20:45.159 this is what the biggest news is. 0:20:45.240 --> 0:20:45.440 Right. 0:20:45.480 --> 0:20:47.919 They didn't want to, I guess test drive it with 0:20:48.040 --> 0:20:50.919 their their sixteen models, right, And I think they finally launched. 0:20:50.920 --> 0:20:53.760 It is they've been trying to get into this space 0:20:53.800 --> 0:20:57.960 with word integration and launching their own modem, and and 0:20:58.040 --> 0:21:00.359 this will also play really well into the so the 0:21:00.400 --> 0:21:04.440 investors write more profitability, but also give them more room 0:21:04.560 --> 0:21:08.520 to play with the design, play with whether it's you know, 0:21:08.560 --> 0:21:10.600 they use it as a as a test play to 0:21:10.640 --> 0:21:14.720 see how much more they can make the device more efficient, 0:21:14.880 --> 0:21:17.360 how they can play with the design and what they 0:21:17.400 --> 0:21:20.560 can do is essentially whether they you know, how they 0:21:21.000 --> 0:21:23.960 what lessons do they learn right to bring it into play, 0:21:24.240 --> 0:21:26.680 whether it's in terms of efficiency and design or really 0:21:26.680 --> 0:21:30.040 bring the motem into the seventeen. So I think that's 0:21:30.080 --> 0:21:32.520 it's a really good test ground for them. And at 0:21:32.560 --> 0:21:36.560 the same time, right, the sixteen users who are or 0:21:36.680 --> 0:21:39.600 rather the sixteen uh not e right, but the the 0:21:40.840 --> 0:21:43.919 pro and the the users are paying double the price 0:21:44.040 --> 0:21:47.159 for the rest of the family won't feel kind of 0:21:47.240 --> 0:21:50.199 cheated because they're paying double the price. But at the 0:21:50.240 --> 0:21:52.399 same time, you know, they're getting the Qualcom chip. So 0:21:52.400 --> 0:21:55.399 I think it's a really genius marketing move. At the 0:21:55.400 --> 0:21:58.760 same time, the se users will get a phenomenal upgrade 0:21:58.760 --> 0:22:00.879 and they won't feel that we're paying two hundred dollars 0:22:00.920 --> 0:22:05.120 more for you know, they're getting all of these fascinating upgrades, 0:22:05.200 --> 0:22:09.359 not just the modem but the latest chip and you know, 0:22:09.440 --> 0:22:12.320 bigger screen size and rival list of upgrades. 0:22:11.920 --> 0:22:12.800 And Apple intelligence. 0:22:12.920 --> 0:22:16.159 Nabila popole I see senior research director joining us and 0:22:16.359 --> 0:22:18.480 interestingly reports that Apples Tim Cook is actually going to 0:22:18.480 --> 0:22:20.080 be meeting with Trump and the Oval Office. 0:22:20.280 --> 0:22:21.520 Plenty of for him to discuss. 0:22:21.200 --> 0:22:23.239 When it comes to China where they probably want that 0:22:23.600 --> 0:22:33.960 sixteen E to be selling. Well, welcome back to lu 0:22:34.040 --> 0:22:36.040 Meg Technology and Caline Hide in New York. 0:22:36.400 --> 0:22:38.160 And I'm Jackie Devalas in San Francisco. 0:22:38.280 --> 0:22:41.400 Got more than five percent after that twenty day rally, 0:22:41.640 --> 0:22:45.640 that record rally that saw shares go into record territory. 0:22:45.920 --> 0:22:48.000 Come and Ranicky is with us to talk us through 0:22:48.040 --> 0:22:50.520 what that twenty day rally means. Yes, we pull back 0:22:50.520 --> 0:22:53.560 a bit, but ultimately this has driven the stock to 0:22:53.680 --> 0:22:57.120 numbers that we've never seen since it's well first listing 0:22:57.359 --> 0:22:59.439 and we're questioning whether they need to get a little cheaper. 0:22:59.720 --> 0:23:02.359 Yeah, exactly. So we've been watching Meta for a while. 0:23:02.400 --> 0:23:05.520 Obviously it's had an incredible run over the last few years, 0:23:05.560 --> 0:23:09.000 and this twenty day rally was just amazing to watch. 0:23:09.920 --> 0:23:13.840 Metas never split its stock before, so since twenty thirteen, 0:23:13.960 --> 0:23:17.320