WEBVTT - Bloomberg Surveillance TV: May 1st, 2026 0:00:02.360 --> 0:00:06.720 Bloomberg Audio Studios, Podcasts, radio News. 0:00:11.640 --> 0:00:15.440 This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 0:00:15.480 --> 0:00:18.680 with Lisa Bromwitz and Amrie Hortern. Join us each day 0:00:18.720 --> 0:00:22.280 for insight from the best in markets, economics, and geopolitics 0:00:22.400 --> 0:00:24.880 from our global headquarters in New York City. We are 0:00:24.920 --> 0:00:27.680 live on Bloomberg Television weekday mornings from six to nine 0:00:27.720 --> 0:00:31.280 am Eastern. Subscribe to the podcast on Apple, Spotify or 0:00:31.320 --> 0:00:33.919 anywhere else you listen, and as always on the Bloomberg 0:00:34.000 --> 0:00:37.560 Terminal and the Bloomberg Business app LETI servandis this morning 0:00:37.640 --> 0:00:39.120 keeping the pressure on a run. 0:00:40.400 --> 0:00:44.000 Their economy of square set the blockade is incredible. The 0:00:44.040 --> 0:00:46.720 power of about the blockade is incredible. They're not getting 0:00:46.720 --> 0:00:50.760 any money from oil and hopefully it can be worked 0:00:50.760 --> 0:00:53.360 out very soon. The guests were good down. As soon 0:00:53.400 --> 0:00:55.200 as the war's over, it will drop like a rock. 0:00:55.320 --> 0:00:57.360 Despite the fact that we are in what some people 0:00:57.360 --> 0:00:59.920 would call a war, we just hit a new high 0:01:00.320 --> 0:01:01.240 on the stock market. 0:01:01.680 --> 0:01:02.440 So here's the laces. 0:01:02.520 --> 0:01:05.120 This morning, President Trump vowing to maintain the blockade on 0:01:05.160 --> 0:01:08.759 Iranian pause Tehran, insisting it must be lifted before new 0:01:08.800 --> 0:01:11.440 talks can occur. At most of Raymond James Wrights in 0:01:11.480 --> 0:01:14.640 this any diplomatic path forward will likely be rocky and 0:01:14.760 --> 0:01:16.959 have to take the form of a near term framework 0:01:16.959 --> 0:01:20.039 that allows both sides to claim victory. Joined US now 0:01:20.040 --> 0:01:22.280 for more and welcome to the program. At times this 0:01:22.319 --> 0:01:25.559 has been messy, that's inevitable. We've asked the question whether 0:01:25.600 --> 0:01:28.240 this is strategic ambiguity or just the lack of a strategy. 0:01:28.400 --> 0:01:29.760 Do you think we have a decent idea of what 0:01:29.760 --> 0:01:30.680 the strategy is now? 0:01:31.680 --> 0:01:33.880 Well, John, I think the biggest concern that I have 0:01:34.040 --> 0:01:37.479 is right now, both sides feel the other one wants 0:01:37.520 --> 0:01:40.680 to get this over quicker. In both the United States 0:01:40.720 --> 0:01:42.880 and Iran think that they have the upper hand. And 0:01:42.959 --> 0:01:46.840 so unless someone feels this pressure, the streets of her 0:01:46.880 --> 0:01:48.160 moves are not reopening. 0:01:48.720 --> 0:01:50.600 In the you know kind of back and forth. 0:01:50.640 --> 0:01:50.800 Here. 0:01:50.840 --> 0:01:52.200 Is it the oil price? 0:01:52.560 --> 0:01:54.760 Is it the price at the gas pump here in 0:01:54.760 --> 0:01:57.800 the United States? Is it political pressure on Trump? Or 0:01:57.840 --> 0:02:00.240 is it the fact that the Iranian economy needs to 0:02:00.280 --> 0:02:02.560 move things through the straits. They have more than one 0:02:02.640 --> 0:02:05.360 hundred and fifty million barrels of oil on the water. 0:02:05.640 --> 0:02:08.160 They have oil wells that are about to get shut in. 0:02:08.680 --> 0:02:11.440 Who moves first is really the question that I'm getting 0:02:11.480 --> 0:02:12.440 the most here at Raymond. 0:02:12.280 --> 0:02:15.120 James ed, how would targeted strikes accelerate the process by 0:02:15.120 --> 0:02:15.680 the US. 0:02:16.760 --> 0:02:19.400 I think the hope there, Lisa, is that it is 0:02:19.440 --> 0:02:21.720 going to just force it, that there is going to 0:02:21.720 --> 0:02:25.200 be that threat that something has to move. And I 0:02:25.240 --> 0:02:28.040 think from a market perspective, I think the debate here 0:02:28.080 --> 0:02:31.720 is our targeted strikes a signal that the kinetic activity 0:02:31.760 --> 0:02:34.360 is about to really ramp up, or is that the 0:02:34.400 --> 0:02:37.400 push that finally reopens and gets us back to the 0:02:37.440 --> 0:02:38.359 negotiating table. 0:02:38.600 --> 0:02:41.160 My bet is the immediate market reaction. 0:02:40.919 --> 0:02:42.840 Would be the kind of fact that they think that 0:02:42.880 --> 0:02:45.160 this could reopen things, and this could be the catalyst 0:02:45.280 --> 0:02:46.519 to those talks restarting. 0:02:47.040 --> 0:02:49.200 So the hope. 0:02:48.840 --> 0:02:52.359 I have is that even with additional kinetic activity the 0:02:52.400 --> 0:02:55.360 market holds in there. The kind of risk there is 0:02:55.400 --> 0:02:57.800 that it actually kind of goes further self before we 0:02:57.840 --> 0:02:58.840 get any sort of solution. 0:02:59.120 --> 0:02:59.200 Ed. 0:02:59.240 --> 0:03:02.280 How does a deadline of sixty days calculate in this 0:03:02.360 --> 0:03:06.560 whole equation given the fact that ostensibly the administration we'd 0:03:06.639 --> 0:03:10.160 need to see congressional approval to continue the conflict beyond that. 0:03:11.200 --> 0:03:12.600 Yeah, So there's two things there. 0:03:12.639 --> 0:03:14.880 Under the Warpowers Act of nineteen seventy three, there is 0:03:14.919 --> 0:03:19.120 this sixty day deadline. What we heard from Secretary Haigseth 0:03:19.200 --> 0:03:22.240 yesterday is that the Trump administration doesn't think that they 0:03:22.280 --> 0:03:25.320 are hitting that sixty day deadline because of the ceasefire, 0:03:25.840 --> 0:03:28.800 and under this there's also a thirty day ability to 0:03:28.880 --> 0:03:31.799 kind of withdraw troops. However, we have seen presidents in 0:03:31.840 --> 0:03:35.600 the past violate this deadline. After sixty days, you are 0:03:35.680 --> 0:03:38.520 supposed to get the congressional authorization, but you go back 0:03:38.560 --> 0:03:41.320 to the obamadministration. You actually had the House of Representatives 0:03:41.640 --> 0:03:45.760 vote to end activity in Libya because they were well 0:03:45.760 --> 0:03:48.520 beyond that sixty to ninety day period. The Senate never 0:03:48.560 --> 0:03:50.480 took that up. They tried to go to the courts. 0:03:50.520 --> 0:03:53.200 The court said, you know what, it's Congress's job. So 0:03:53.400 --> 0:03:57.320 right now it is a political issue for the Trump administration. 0:03:57.480 --> 0:04:00.320 And unless you have a veto proof majority in the 0:04:00.360 --> 0:04:03.640 House and the Senate, this law does not get enforced 0:04:03.680 --> 0:04:04.440 in two weeks time. 0:04:04.480 --> 0:04:07.480 There's a mating with the Chinese leader. At initially when 0:04:07.480 --> 0:04:10.400 that date was set, when the original date was pushed 0:04:10.440 --> 0:04:12.320 out to the middle of May, people looked at the 0:04:12.320 --> 0:04:15.000 Canadar and said it will be over by then. Is 0:04:15.040 --> 0:04:16.360 that day important anymore? 0:04:17.760 --> 0:04:20.560 It's very important because you have the number one economy 0:04:20.560 --> 0:04:23.880 sitting down with the number two economy. We don't have 0:04:23.960 --> 0:04:27.000 a huge expectation that there's going to be big deals 0:04:27.000 --> 0:04:29.520 that come out of the Trump and She meeting. There 0:04:29.640 --> 0:04:31.880 is a view that that could be some pressure. But 0:04:31.960 --> 0:04:34.160 there's growing questions that I'm getting here at Raymond James. 0:04:34.160 --> 0:04:36.960 Does this get pushed off again? We have not seen 0:04:37.000 --> 0:04:41.560 the staff level negotiations. Besson and Greer have not met 0:04:41.560 --> 0:04:44.920 with their counterparts, and unless you have that fleshed out 0:04:45.000 --> 0:04:47.720 activity before the meeting, you're not going to get real 0:04:47.800 --> 0:04:51.160 deals into this meeting. The other big question that I've 0:04:51.160 --> 0:04:53.840 gotten here at Raymond James, is she, who said that 0:04:53.880 --> 0:04:56.680 this war is upsetting the world order, come in and 0:04:56.720 --> 0:04:59.360 try to be a bit more aggressive with President Trump. 0:05:00.040 --> 0:05:03.080 The risk there is that President Trump never stays on 0:05:03.120 --> 0:05:03.680 the defensive. 0:05:03.920 --> 0:05:05.360 He goes on the offensive. 0:05:05.360 --> 0:05:08.560 And if we have an escalation in the trade war 0:05:08.640 --> 0:05:11.400 with China, if we are questioning what's happening with tech 0:05:11.440 --> 0:05:15.320 restrictions on semiconductors, if we're questioning what's happening on critical minerals. 0:05:15.760 --> 0:05:19.920 Those are not positive headlines. I don't think we get there, 0:05:20.000 --> 0:05:23.159 but that risk is absolutely present over this next two weeks. 0:05:23.360 --> 0:05:24.760 Are there any signs of that so far? 0:05:24.880 --> 0:05:26.920 I've been struck by some of the commentary and corporate 0:05:26.920 --> 0:05:29.159 calls and thinking of Apple in particular and Tim Cook 0:05:29.200 --> 0:05:31.760 talking about how things are actually getting better in China 0:05:31.839 --> 0:05:35.159 and they actually reported it better than expected sales in China. 0:05:35.240 --> 0:05:38.279 Do you get any sense that the relationship is tension 0:05:39.040 --> 0:05:41.119 becoming more tense or do you think that we're entering 0:05:41.120 --> 0:05:44.560 a period of both sides wanting calm. 0:05:45.160 --> 0:05:45.400 Yeah. 0:05:45.440 --> 0:05:48.200 So after the October meeting between Trump and She, he 0:05:48.360 --> 0:05:50.240 gave an order. President Trump gave an order to the 0:05:50.279 --> 0:05:54.760 administration stand down, do not do anything that pokes China, 0:05:54.800 --> 0:05:59.800 which has given this opportunity to de escalate. There's been 0:05:59.839 --> 0:06:03.000 conversations with companies like Apple, can they work with a 0:06:03.000 --> 0:06:07.320 couple of Chinese companies to develop deals on memory because 0:06:07.400 --> 0:06:09.880 those have been very expensive products. 0:06:10.320 --> 0:06:11.400 Those are openings. 0:06:12.440 --> 0:06:15.080 Tim Cook has had a great relationship with President Trump 0:06:15.480 --> 0:06:17.640 since the beginning of this second term. 0:06:18.480 --> 0:06:20.880 But if you see this kind of. 0:06:20.960 --> 0:06:23.880 Shift and if she wants to make this change, because 0:06:24.080 --> 0:06:26.640 they hold a number of things that we need to 0:06:26.720 --> 0:06:27.640 run our economy. 0:06:28.360 --> 0:06:29.840 He could get a little bit more aggressive. 0:06:29.920 --> 0:06:30.000 Now. 0:06:30.080 --> 0:06:32.200 The United States holds plenty of things that China needs 0:06:32.240 --> 0:06:35.960 to run their economy. It's just more of that personality 0:06:36.120 --> 0:06:40.760 driven decision making as we go into this discussion here kind. 0:06:40.600 --> 0:06:42.880 Of two weeks from now, that can dictate that. 0:06:43.320 --> 0:06:45.240 And I guess the one warning I'd have is that 0:06:45.760 --> 0:06:49.200 we've seen in the past China will escalate right before 0:06:49.240 --> 0:06:52.359 the meeting to be able to de escalate during the meeting. 0:06:52.560 --> 0:06:54.599 Trump's able to come out of the meeting and say 0:06:54.880 --> 0:06:58.680 I won these concessions that China had threatened. That's what 0:06:58.720 --> 0:07:00.880 we did in October. Will we do it again here 0:07:00.920 --> 0:07:01.200 in May? 0:07:01.920 --> 0:07:02.520 Stay with us. 0:07:02.880 --> 0:07:15.840 More Bloomberg surveillance coming up after this slightly more hawkish 0:07:16.000 --> 0:07:19.120 Federal Reserve this week. Crude price is still elevated, yet 0:07:19.120 --> 0:07:21.520 we enter May at all time highs on the S 0:07:21.560 --> 0:07:23.880 and P five hundred, kicking off a fresh trading month. 0:07:23.920 --> 0:07:26.800 Abbi Yoda of JP Morgan Private Bank writing, despite no 0:07:26.880 --> 0:07:30.000 when to the conflict in Iran, insight earnings didn't blink 0:07:30.240 --> 0:07:33.239 companies of beating expectations at a pace we haven't seen 0:07:33.600 --> 0:07:36.200 in years. Abby Joints us now for more Abbi, good monic, 0:07:36.200 --> 0:07:38.400 good morning. Does this mean the situation the Middle East 0:07:38.400 --> 0:07:41.040 doesn't matter or just doesn't matter yet? 0:07:41.160 --> 0:07:43.360 I think doesn't matter yet, right, Like you're not going 0:07:43.400 --> 0:07:45.600 to really in you know, we tried to lay out 0:07:45.600 --> 0:07:49.240 three scenarios when this conflict originated, thinking about you know, 0:07:49.280 --> 0:07:52.080 what would it take for it to matter? Right, And 0:07:52.120 --> 0:07:54.600 there is a period of time, like a length that 0:07:54.720 --> 0:07:56.840 is a derition that is important to keep in mind, 0:07:56.840 --> 0:07:59.080 and for us, that's three to six months at these 0:07:59.120 --> 0:08:01.800 elevated prices, is particularly north of one hundred or one 0:08:01.840 --> 0:08:05.040 hundred and twenty dollars on a oil and so that's 0:08:05.120 --> 0:08:07.960 really where we're more concerned if we continue to see 0:08:07.960 --> 0:08:10.680 this extended through the summer, particularly given you know that 0:08:10.800 --> 0:08:14.120 heavy driving season and you've already seen that percent of 0:08:14.240 --> 0:08:16.920 disposable income for the media consumer go up from around 0:08:16.920 --> 0:08:19.320 three and a half percent to four percent on gasoline. 0:08:19.520 --> 0:08:21.920 So if that continues to move higher, then that, you know, 0:08:21.960 --> 0:08:24.520 that could that could weigh on economic growth and sentiment 0:08:24.560 --> 0:08:26.440 more broadly. I think sentiment, the sentiment. 0:08:26.200 --> 0:08:29.040 Channels very bad to say in sentiment already, Yes, consumer 0:08:29.160 --> 0:08:30.720 sentiment is really ready. 0:08:30.880 --> 0:08:32.400 It has been the case for the past four or 0:08:32.400 --> 0:08:32.800 five years. 0:08:32.800 --> 0:08:34.560 Well, this is the question. It's very is the question 0:08:34.640 --> 0:08:36.760 is going to ask you why is that relevant because 0:08:36.800 --> 0:08:38.080 it hasn't been Well, I. 0:08:38.080 --> 0:08:41.160 Mean it's relevant because I mean it's stark in the 0:08:41.240 --> 0:08:43.440 sense that it's the lowest it's ever been, and it's 0:08:43.480 --> 0:08:45.880 at odds with what's going on from an economic standpoint 0:08:45.880 --> 0:08:48.840 and from a you know, stock market standpoint, earning standpoint, 0:08:49.120 --> 0:08:51.040 because at the end of the day, what ends up 0:08:51.040 --> 0:08:53.439 happening is we look at all these confidence measures, we 0:08:53.520 --> 0:08:55.360 want to have some read through there. But then when 0:08:55.360 --> 0:08:57.360 you look at the spending figures, right, the bank's all 0:08:57.400 --> 0:09:00.560 reported in the first couple of weeks of earnings and 0:09:01.640 --> 0:09:03.880 spending growth is really really solid. Like a lot of 0:09:03.920 --> 0:09:05.559 these CEOs were like, you know what, you can't ask 0:09:05.640 --> 0:09:07.360 us this anymore because at the end of the day, 0:09:07.360 --> 0:09:10.800 like consumers are still spending, whether they feel poorly or not, 0:09:10.960 --> 0:09:14.160 they continue to spend. And you know, the makeup of 0:09:14.200 --> 0:09:16.200 that spend I think is shifted. Right, it's much more 0:09:16.280 --> 0:09:19.520 services oriented in our view, but it's still very elevated 0:09:19.559 --> 0:09:20.720 relative to history. 0:09:20.840 --> 0:09:22.920 Has there been a shift over the past couple of weeks? 0:09:22.960 --> 0:09:25.720 And I asked this because Mark Zuckerberg in this letter 0:09:25.720 --> 0:09:27.599 that he sent out it Meta said that there was 0:09:27.640 --> 0:09:30.680 a trajectory change in metas ad business after the start 0:09:30.720 --> 0:09:33.120 of the US War, saying, if oil prices go up, 0:09:33.120 --> 0:09:35.640 then consumers spend more of their money on oil, on gas, 0:09:35.679 --> 0:09:38.120 and less on things that they would just buy that 0:09:38.200 --> 0:09:41.560 are just kind of discretionary things that the advertising might serve. 0:09:42.160 --> 0:09:43.480 Do you see this in any kind of way or 0:09:43.559 --> 0:09:44.240 is this an excuse? 0:09:44.559 --> 0:09:47.080 Well, I mean, you haven't seen it in the results 0:09:47.559 --> 0:09:50.160 in terms of ad spend growth and the actual usage 0:09:50.200 --> 0:09:52.480 of these of these apps in terms of what they're 0:09:52.520 --> 0:09:57.440 spending on. I think what we're worried about again is 0:09:57.480 --> 0:10:01.280 if this stays higher for longer and creeps more into 0:10:01.559 --> 0:10:04.120 the confidence levels of consumers, that you start to see 0:10:04.120 --> 0:10:06.840 that spend shift. But for the most part, we just 0:10:06.880 --> 0:10:09.640 really haven't seen it in terms of the ad spend 0:10:09.840 --> 0:10:12.680 and the growth from a lot of these megacap names. 0:10:12.760 --> 0:10:16.040 What's the argument to go more into equities right now 0:10:16.200 --> 0:10:19.480 after the rally that we've seen as oil prices continue 0:10:19.520 --> 0:10:22.400 to go higher and as yields continued to rise, I mean, 0:10:22.440 --> 0:10:24.560 why not just cash out and kind of have a 0:10:24.600 --> 0:10:27.360 more conservative portfolio and just sort of sits tight and 0:10:27.400 --> 0:10:28.320 wait for the next leg. 0:10:28.640 --> 0:10:31.640 Well, so first, if inflation is in fact going higher, 0:10:31.720 --> 0:10:34.120 then you are losing purchasing power from anything that's like 0:10:34.160 --> 0:10:38.040 short term cash related investments. I think the other thing 0:10:38.080 --> 0:10:39.680 to keep in mind is we're at all time highs 0:10:39.720 --> 0:10:42.280 in an equity market, but the valuation is actually lower 0:10:42.280 --> 0:10:44.360 than when we started the year, and that's because we've 0:10:44.360 --> 0:10:46.839 seen earnings revisions that are in excess of what we've 0:10:46.840 --> 0:10:49.719 seen from a price reaction standpoint. So, for example, for 0:10:49.840 --> 0:10:52.439 one Q earnings, we started this quarter with the expectation 0:10:52.480 --> 0:10:54.080 that earnings would grow twelve percent. 0:10:54.640 --> 0:10:55.880 Now with a little. 0:10:55.640 --> 0:10:58.439 Bit over fifty percent of market gap having reported, we're 0:10:58.440 --> 0:11:01.760 it close to twenty percent. That is enormous, and that's 0:11:01.880 --> 0:11:05.160 the sixth consecutive quarter of double digit earnings growth, right, 0:11:05.200 --> 0:11:07.600 So if you think about it, these aren't easy comps, right, 0:11:07.640 --> 0:11:09.920 We're already growing off of a very high base, and 0:11:09.960 --> 0:11:13.160 I think obviously technology and the tech related sectors are 0:11:13.200 --> 0:11:15.520 what's driving that. And the margin profile of the S 0:11:15.559 --> 0:11:18.080 and P five hundred is just very different than it 0:11:18.160 --> 0:11:20.240 used to be, you know, ten fifteen years ago. So 0:11:20.280 --> 0:11:22.920 when you're looking at oh, you know, the elevated pe 0:11:22.960 --> 0:11:25.280 of twenty one to twenty two times. But the makeup 0:11:25.320 --> 0:11:27.679 of this is just very different and is worthy of 0:11:27.720 --> 0:11:28.440 that higher multiple. 0:11:28.400 --> 0:11:30.360 Can we finish on one of your sanctify favorites? Something 0:11:30.360 --> 0:11:33.000 you know tons about chips, the rudy we saw in 0:11:33.040 --> 0:11:36.160 Stemmi's forty percent move in April. What do you tell 0:11:36.200 --> 0:11:38.800 people they should do in that sector now after a running. 0:11:38.640 --> 0:11:40.960 Like that, I mean it's buying on strength, I think 0:11:41.000 --> 0:11:42.920 when you really and I think this is part of 0:11:42.960 --> 0:11:46.520 the heart, you know, reconciling this, Like we're three and 0:11:46.520 --> 0:11:49.880 a half years into when like this AI cycle, and 0:11:49.920 --> 0:11:52.920 I don't think that anyone would have thought that three 0:11:53.000 --> 0:11:56.320 and a half years in the infrastructure players would have 0:11:56.400 --> 0:11:59.160 been still the beneficiaries of this trade, right, you would 0:11:59.160 --> 0:12:00.920 have thought it would be the ads, And you're seeing 0:12:01.000 --> 0:12:03.640 all these you know, the margin expansion story happen in 0:12:03.720 --> 0:12:07.679 play out. But because we're so supply constrained, in an 0:12:07.840 --> 0:12:11.040 energy constrained it really is that you're still seeing these 0:12:11.480 --> 0:12:13.880 these you know, the nuts and bolts of this build out. 0:12:13.960 --> 0:12:15.000 Those are still the winners. 0:12:15.000 --> 0:12:17.960 And I don't foresee we don't foresee that changing in 0:12:18.000 --> 0:12:20.040 the next you know, two three years. 0:12:20.080 --> 0:12:22.120 Check the industry for so long though, That's why it's 0:12:22.120 --> 0:12:25.160 often so cyclical, but initially supply constrained, they build it out. 0:12:25.160 --> 0:12:26.440 The opposite happens. 0:12:26.160 --> 0:12:27.880 Bust, particularly on the memory side. 0:12:27.920 --> 0:12:30.040 Right, So why is this different? Why does this have 0:12:30.600 --> 0:12:31.640 a long a timeline? 0:12:31.720 --> 0:12:33.560 Well, because I think when you when you think about 0:12:33.559 --> 0:12:36.480 the starting line, like the starting line, we just didn't 0:12:36.480 --> 0:12:38.880 have the industrial capacity to really build. 0:12:38.600 --> 0:12:39.640 Out what we need now. 0:12:39.720 --> 0:12:42.120 Right, this all happened and accelerated very quickly, and we 0:12:42.200 --> 0:12:45.040 just didn't have the industrial base. Now there's obviously a 0:12:45.080 --> 0:12:47.280 lot of incentives to build that out, but we're still 0:12:47.400 --> 0:12:50.120 very far behind. And I think, you know, it's really 0:12:50.160 --> 0:12:52.000 been over the last like eight to ten months, call 0:12:52.040 --> 0:12:54.840 it where you've also seen it's just been this trade 0:12:54.880 --> 0:12:57.520 around all of these different components that go into this, right, 0:12:57.559 --> 0:13:00.600 whether it's optical, whether it's memory. We're so those weren't 0:13:00.600 --> 0:13:02.400 really it was at first it was just GPUs and 0:13:02.440 --> 0:13:04.559 it was just you know, the compute. But now it's 0:13:04.600 --> 0:13:07.960 just this broader set of inputs that are all needed. 0:13:07.840 --> 0:13:09.480 That we don't have enough of, and you think people 0:13:09.480 --> 0:13:10.600 should stick with that trade? 0:13:10.679 --> 0:13:15.599 Yes, within tech were you know semis over hardware over software. 0:13:15.679 --> 0:13:19.199 Stay with us more Bloomberg surveillance coming up after this. 0:13:28.559 --> 0:13:31.640 President Donald Trump hosting the Artomist two astronauts at the 0:13:31.640 --> 0:13:34.160 White House this week, the visit coming nearly a month 0:13:34.440 --> 0:13:37.600 after the historic trip around the Moon. I'm really pleased 0:13:37.600 --> 0:13:39.520 to say that. In the studio here in New York City, 0:13:39.720 --> 0:13:42.920 the NASA administrator Jared Isaac mun chared, good morning. 0:13:42.760 --> 0:13:43.160 Going to see you. 0:13:43.160 --> 0:13:43.640 It's good morning. 0:13:43.640 --> 0:13:44.319 It's great to be here. 0:13:44.400 --> 0:13:46.880 The pictures are amazic. I understand it costs a lot 0:13:46.880 --> 0:13:48.760 of money. Can you explain to all of us what 0:13:48.800 --> 0:13:50.880 we actually achieved in the last month. 0:13:51.200 --> 0:13:53.880 Well, I would consider that Artemist two is part of 0:13:53.920 --> 0:13:56.400 a much bigger plan. So President Trump, during his first 0:13:56.480 --> 0:13:59.680 term created the Artemis program, America's commitment to return to 0:13:59.720 --> 0:14:01.880 the Moon. My first day on the job, he signs 0:14:01.880 --> 0:14:04.280 a National Space policy that says, pick up where Apollo 0:14:04.360 --> 0:14:07.360 seventeen left off. Return to the Moon, but go back 0:14:07.400 --> 0:14:10.000 to stay this time. Build an enduring presence, good luck. 0:14:10.040 --> 0:14:12.599 Build a moon base, which I mean it's going to 0:14:12.640 --> 0:14:15.720 be a hub for scientific discovery, economic potential. Maybe we 0:14:15.800 --> 0:14:18.120 have a lunar economy someday, but it will be the 0:14:18.160 --> 0:14:21.120 technological proving ground for where we go next, which is 0:14:21.200 --> 0:14:23.440 more so all part of a bigger plan. Artemis two 0:14:23.520 --> 0:14:24.360 is just the opening act. 0:14:24.400 --> 0:14:27.240 In the period of time, we have changed space exploration 0:14:27.320 --> 0:14:30.800 a lot. We've introduced commercial space exploration. What does that 0:14:30.880 --> 0:14:32.960 mean for the role of NASA as we try to 0:14:32.960 --> 0:14:33.680 achieve these things. 0:14:33.880 --> 0:14:36.000 It's interesting I get that question all the time because 0:14:36.040 --> 0:14:38.760 there are some new names. You have, your SpaceX's and 0:14:38.800 --> 0:14:41.080 Blue origins that get everyone's attention. It's like, where does 0:14:41.160 --> 0:14:42.920 NASA fit in? I remind folks, you go back to 0:14:43.000 --> 0:14:45.880 the nineteen sixties. You had Boeing, yet McDonald douglas built 0:14:45.880 --> 0:14:48.520 the gem and E spacecraft. You had a Grummin that 0:14:48.560 --> 0:14:50.640 built the lander that put the astronauts on the Moon. 0:14:50.800 --> 0:14:52.760 Many of those players still exist today, but we have 0:14:52.840 --> 0:14:55.440 some new and SpaceX Blue origin. NASA is at its 0:14:55.520 --> 0:14:59.200 best when we're doing the near impossible with no other agency, company, 0:14:59.280 --> 0:15:01.920 nation in the world is capable of accomplishing. And when 0:15:01.920 --> 0:15:04.400 we figure it out, if NASA can be one customer 0:15:04.440 --> 0:15:06.560 of many, we hand it off to industry and let 0:15:06.640 --> 0:15:09.440 competitive dynamics make it better, costs less. Launch is a 0:15:09.440 --> 0:15:12.320 great example. Right now, dozens of companies brought down the 0:15:12.360 --> 0:15:15.520 cost put mass in orbit materially, NASA recalibrates. Like that 0:15:15.560 --> 0:15:17.560 picture you had on the screen, which was a nuclear 0:15:17.680 --> 0:15:20.440 powered spaceship, that's not something industry you should be playing with. 0:15:20.480 --> 0:15:22.400 They don't need to mess around with highly enriched uranium 0:15:22.480 --> 0:15:25.880 launch reactors over Earth. That's something that NASA is capable 0:15:25.880 --> 0:15:28.840 of doing. So we recalibrate again back to the near impossible. 0:15:28.840 --> 0:15:30.760 The capabilities allows us to explore the outer sols. 0:15:30.800 --> 0:15:32.680 Just I think about the space race down back in 0:15:32.720 --> 0:15:35.840 the fifties and sixties and how much that put grants 0:15:35.880 --> 0:15:38.520 in all sorts of academic centers to try to get 0:15:38.600 --> 0:15:41.880 up new scientists, to get them into exactly that kind 0:15:41.920 --> 0:15:43.760 of thing. Is this kind of what we're replicating here? 0:15:44.040 --> 0:15:45.600 Well, I like to think, and I just told this 0:15:45.640 --> 0:15:48.080 to Congress this past week, is every dollar you give 0:15:48.160 --> 0:15:49.880 us inherent in it is inspiration. 0:15:50.080 --> 0:15:51.240 So of course, the. 0:15:51.280 --> 0:15:54.560 Rockets, the rockets, the astronauts are walking on the Moon, 0:15:54.680 --> 0:15:57.480 the explanes, the images that come back from James Webspace 0:15:57.480 --> 0:16:01.240 Telescope or our rovers on Mars. That's not enough, right, 0:16:01.240 --> 0:16:04.160 That's enough to spark the interest. You more kids dressing 0:16:04.240 --> 0:16:06.720 up as astronauts for Halloween. But we still have a 0:16:06.840 --> 0:16:10.040 huge grand portfolio that goes out to university. We have 0:16:10.080 --> 0:16:12.360 a top internship program right now, we take the top 0:16:12.400 --> 0:16:15.360 one percent of internship applications. And what I like about 0:16:15.360 --> 0:16:17.360 our moon based program right now, we're going to have 0:16:17.480 --> 0:16:19.840 landers on the Moon on a near monthly cadence starting 0:16:19.840 --> 0:16:22.320 in early twenty twenty seven. We could raid the pantry 0:16:22.320 --> 0:16:24.280 at every NASA center for science instruments. 0:16:24.400 --> 0:16:25.800 There won't be enough. So what does that mean? 0:16:25.800 --> 0:16:28.000 There's kids in universities right now in the United States 0:16:28.040 --> 0:16:30.080 and across the world that are working on hardware that's 0:16:30.080 --> 0:16:31.320 going to be on the Moon in the years ahead. 0:16:31.440 --> 0:16:33.840 There's an argument why focus on space when we have 0:16:33.880 --> 0:16:35.800 a lot of problems here on Earth to fix? Can 0:16:35.800 --> 0:16:37.600 you give us a sense of some of the scientific 0:16:37.680 --> 0:16:40.560 progress that's coming from some of these programs that has 0:16:40.600 --> 0:16:44.440 real world application beyond just necessarily hyperscalers on the moon? 0:16:44.760 --> 0:16:45.040 Sure? 0:16:45.160 --> 0:16:47.360 Well, I mean, first, we've been hearing this since the 0:16:47.440 --> 0:16:49.800 nineteen sixties too, And what I would say, it's a different, 0:16:50.400 --> 0:16:54.440 different budgetary environment now versus then. So nineteen sixties NASA 0:16:54.440 --> 0:16:56.480 is about four and a half percent of the discretionary budget. 0:16:56.600 --> 0:16:57.720 We're about a quarter of. 0:16:57.720 --> 0:17:00.680 A percentage now, So I would argue we can do both. 0:17:00.920 --> 0:17:03.280 We can make investments into a brighter future for the 0:17:03.560 --> 0:17:05.320 you know, for the world we want our children to 0:17:05.960 --> 0:17:08.320 grow up and try and address some of the hardships, 0:17:08.359 --> 0:17:11.160 the affordability, the challenges of the world we live in today. 0:17:11.200 --> 0:17:14.000 And does it matter for sure? Inspiration is a price 0:17:14.040 --> 0:17:16.160 worth paying for the next generation to take us even 0:17:16.160 --> 0:17:19.160 farther scientific economic potential, I mean, go to the moon. 0:17:19.440 --> 0:17:21.800 What could a lunar economy look like someday? I mean, 0:17:22.000 --> 0:17:24.479 whether we are three D printing satellites like you described, 0:17:24.560 --> 0:17:26.679 or maybe we're mining helium three that could have quantum 0:17:26.720 --> 0:17:31.359 implications or future or future fusion power, a source of 0:17:31.400 --> 0:17:34.720 future fusion power, not to mention to just look knowledge. 0:17:34.760 --> 0:17:36.600 I mean, what do we stand a learning game? We've 0:17:36.640 --> 0:17:38.320 only just begun this great adventure. 0:17:38.400 --> 0:17:40.879 Can you achieve these goals with budget cuts? They're the 0:17:40.960 --> 0:17:44.040 questions you've faced all through the last few weeks. 0:17:44.280 --> 0:17:46.200 Well, I guess, and I'll tell you the same thing 0:17:46.240 --> 0:17:48.120