1
00:00:01,440 --> 00:00:05,120
Speaker 1: From Mahard where Innovation of Money and Power Collie in

2
00:00:05,200 --> 00:00:10,160
Speaker 1: Silicon Valley NBN. This is Bloomberg Technology with Caroline Hyde

3
00:00:10,160 --> 00:00:11,080
Speaker 1: and Ed Ludlow.

4
00:00:25,239 --> 00:00:27,680
Speaker 2: Now from New York and San Francisco. This is Bloomberg

5
00:00:27,720 --> 00:00:31,280
Speaker 2: Technology coming up. Tech stocks lead the markets to new highs.

6
00:00:31,520 --> 00:00:34,479
Speaker 3: We discussed the drivers from the elections to earnings and

7
00:00:34,520 --> 00:00:36,040
Speaker 3: the FED, and.

8
00:00:36,000 --> 00:00:39,040
Speaker 4: We talked chip demand as ARM and Qualcom give mixed

9
00:00:39,040 --> 00:00:40,879
Speaker 4: signals about the smartphone market.

10
00:00:41,000 --> 00:00:43,599
Speaker 5: We speak to ARMS CEO Rene Has and.

11
00:00:43,560 --> 00:00:45,960
Speaker 2: The c suite take on the election. We speak with

12
00:00:46,040 --> 00:00:49,000
Speaker 2: Andreil's at Palmer Lucky. I'm going to focus on defense tech,

13
00:00:49,080 --> 00:00:51,440
Speaker 2: but first let's just get back to these publicly traded

14
00:00:51,479 --> 00:00:53,920
Speaker 2: markets that are at new record highs. I shine a

15
00:00:53,960 --> 00:00:56,480
Speaker 2: light on the Nastak one hundred. It finally reaches that

16
00:00:56,560 --> 00:00:59,840
Speaker 2: new record yesterday, eclipsing the number it got to back

17
00:00:59,880 --> 00:01:00,320
Speaker 2: in July.

18
00:01:00,360 --> 00:01:01,600
Speaker 3: We're at one point three percent.

19
00:01:01,920 --> 00:01:06,319
Speaker 2: The likely magnificent sevens drive this benchmark to yet further

20
00:01:06,360 --> 00:01:07,320
Speaker 2: heights ahead of the FED.

21
00:01:07,400 --> 00:01:08,039
Speaker 3: What are you watching?

22
00:01:08,120 --> 00:01:09,560
Speaker 5: End earnings?

23
00:01:09,560 --> 00:01:12,640
Speaker 4: But November fifth an astonishing day to report numbers. Right,

24
00:01:12,760 --> 00:01:15,479
Speaker 4: Lift is up twenty seven percent off session highs where

25
00:01:15,480 --> 00:01:18,440
Speaker 4: it was up thirty percent strong outlook, they're kind of

26
00:01:18,480 --> 00:01:22,000
Speaker 4: finding their niche and growth despite big brother Uber also

27
00:01:22,160 --> 00:01:24,800
Speaker 4: doing well. Then there's the chip names qual Common, ARM.

28
00:01:25,200 --> 00:01:27,920
Speaker 4: They've traded very choppy in the session. Qual Comm was

29
00:01:28,000 --> 00:01:30,160
Speaker 4: up a lot, now it's up eight tens percent. Arm

30
00:01:30,319 --> 00:01:32,600
Speaker 4: was down, it's now up five and a half percent.

31
00:01:33,319 --> 00:01:37,959
Speaker 4: Basically consumers in key markets like China buying higher price

32
00:01:38,040 --> 00:01:39,600
Speaker 4: handsets and both benefiting from that.

33
00:01:39,680 --> 00:01:41,560
Speaker 5: But we can get into it later in the program

34
00:01:41,600 --> 00:01:42,160
Speaker 5: we can.

35
00:01:42,000 --> 00:01:43,880
Speaker 2: And of course China are a key focus for the

36
00:01:43,920 --> 00:01:47,199
Speaker 2: macro perspective going forward. After the results of the election

37
00:01:47,319 --> 00:01:49,920
Speaker 2: came through. Let's get an overview of these markets of roombgs,

38
00:01:50,040 --> 00:01:53,400
Speaker 2: Jess meant and just we see big tech leading all

39
00:01:53,400 --> 00:01:55,880
Speaker 2: the benchmarks to new highs as well as small caps.

40
00:01:55,880 --> 00:01:57,760
Speaker 3: But what keeps your eye, Well.

41
00:01:57,600 --> 00:01:59,400
Speaker 6: The big thing is because you'll just touched on when

42
00:01:59,400 --> 00:02:01,840
Speaker 6: it comes to Earth. So the biggest player, obviously we'll

43
00:02:01,840 --> 00:02:04,440
Speaker 6: have Invidia coming up on November twentieth, but when you

44
00:02:04,480 --> 00:02:06,880
Speaker 6: look more specifically at when it comes to some of

45
00:02:06,920 --> 00:02:09,520
Speaker 6: its biggest customers, we've already had those earnings when it

46
00:02:09,560 --> 00:02:12,960
Speaker 6: comes to Meta, Microsoft, alphabet as Wolls, Amazon, So when

47
00:02:12,960 --> 00:02:15,200
Speaker 6: it comes to as far as what in totality when

48
00:02:15,200 --> 00:02:18,519
Speaker 6: it comes to what they're plowing into data center binesses

49
00:02:18,600 --> 00:02:20,840
Speaker 6: as well as other fixed assets. I mean, it's around

50
00:02:20,919 --> 00:02:24,120
Speaker 6: fifty nine billion with those forward companies just in the

51
00:02:24,160 --> 00:02:26,400
Speaker 6: third quarter alone, So usually that you can kind of

52
00:02:26,400 --> 00:02:29,239
Speaker 6: glean into what that means for in video moving forward.

53
00:02:29,280 --> 00:02:30,200
Speaker 3: But obviously on the.

54
00:02:30,160 --> 00:02:32,480
Speaker 6: Back of these election results, there's a lot of questions

55
00:02:32,520 --> 00:02:34,960
Speaker 6: as far as what this could potentially mean for Biden's

56
00:02:35,000 --> 00:02:37,440
Speaker 6: chip back, especially when you think about companies that derive

57
00:02:37,639 --> 00:02:40,880
Speaker 6: different manufacturing from overseas like Apple as wolves when it

58
00:02:40,919 --> 00:02:44,200
Speaker 6: comes to say China and Biden trying to prohibit them

59
00:02:44,280 --> 00:02:46,480
Speaker 6: trying to use Western technology and trying to curb that.

60
00:02:46,560 --> 00:02:50,880
Speaker 4: Right now, Caroline, the headline of the band story today

61
00:02:50,919 --> 00:02:53,359
Speaker 4: is in video is clear winner in a lackluster big

62
00:02:53,360 --> 00:02:54,200
Speaker 4: tech earning season.

63
00:02:54,760 --> 00:02:58,600
Speaker 5: Is anyone watching the show? It's been great, Caroline, I've

64
00:02:58,600 --> 00:02:59,400
Speaker 5: had a lot of fun.

65
00:03:00,120 --> 00:03:01,960
Speaker 4: The main point is that whatever happens in this next

66
00:03:02,000 --> 00:03:04,520
Speaker 4: administration jests, it doesn't kick in for a while. Is

67
00:03:04,560 --> 00:03:06,800
Speaker 4: there like a theme of the now of the next

68
00:03:06,800 --> 00:03:09,240
Speaker 4: three months, final three months of the year that markets

69
00:03:09,240 --> 00:03:10,160
Speaker 4: are looking to well.

70
00:03:10,240 --> 00:03:12,920
Speaker 6: Usually the playbook in an election year is typically once

71
00:03:13,000 --> 00:03:14,160
Speaker 6: you have the election results.

72
00:03:14,160 --> 00:03:15,160
Speaker 3: There tends to be a year.

73
00:03:15,120 --> 00:03:17,520
Speaker 6: End rally, but we had quite a bit of a

74
00:03:17,560 --> 00:03:19,600
Speaker 6: real not even just when you're thinking about what's happened

75
00:03:19,720 --> 00:03:21,840
Speaker 6: tech and growth stocks, but the first three quarters of

76
00:03:21,840 --> 00:03:23,520
Speaker 6: this year was the best start to a year for

77
00:03:23,520 --> 00:03:25,920
Speaker 6: the S and P five hundred since nineteen ninety seven,

78
00:03:25,919 --> 00:03:27,639
Speaker 6: but the Magnetum seven didn't really.

79
00:03:27,680 --> 00:03:29,400
Speaker 3: Contribute to that in the third quarter.

80
00:03:29,440 --> 00:03:31,440
Speaker 6: Obviously we've seen a bounce back from that, but even

81
00:03:31,440 --> 00:03:34,760
Speaker 6: when we heard from Microsoft and Meta's results in recent

82
00:03:34,800 --> 00:03:36,520
Speaker 6: weeks on the back of that, we didn't.

83
00:03:36,240 --> 00:03:37,440
Speaker 3: Really see those stocks pop.

84
00:03:37,560 --> 00:03:39,600
Speaker 6: But obviously sort of an all tied kind of lifting

85
00:03:39,640 --> 00:03:41,680
Speaker 6: bulks here over the last couple of days following those

86
00:03:41,680 --> 00:03:44,040
Speaker 6: election results. But moving forward, it's whether or not we

87
00:03:44,160 --> 00:03:46,760
Speaker 6: see that playbook and especially the positioning play out in

88
00:03:46,800 --> 00:03:48,600
Speaker 6: the final months of the year like we normally would

89
00:03:48,600 --> 00:03:49,160
Speaker 6: through history.

90
00:03:50,120 --> 00:03:52,280
Speaker 4: Boo bos Jess meant and helping us make sense of

91
00:03:52,360 --> 00:03:55,680
Speaker 4: tech in markets, Thank you very much. So what does

92
00:03:55,760 --> 00:03:58,680
Speaker 4: Trump two point zero presidency look like for the tech sector?

93
00:03:59,000 --> 00:04:02,720
Speaker 4: Dan ives have web shrites. We expect a strong AI

94
00:04:02,880 --> 00:04:05,600
Speaker 4: focus out of the gates from Trump for US big

95
00:04:05,640 --> 00:04:09,480
Speaker 4: tech players can't out of the FTC and Musk's big

96
00:04:09,480 --> 00:04:12,720
Speaker 4: bet on Trump being a home run for Tesla.

97
00:04:14,040 --> 00:04:14,960
Speaker 5: Danaves joins us.

98
00:04:14,960 --> 00:04:18,560
Speaker 4: Now, Dan, regular viewers of this show and network will

99
00:04:18,600 --> 00:04:20,200
Speaker 4: know that much of what I just read out is

100
00:04:20,200 --> 00:04:23,120
Speaker 4: not a surprise this that you have this thesis.

101
00:04:23,120 --> 00:04:24,880
Speaker 5: But let's start on the AI part.

102
00:04:25,080 --> 00:04:28,440
Speaker 4: What gives you such conviction that Trump will focus on

103
00:04:28,520 --> 00:04:29,520
Speaker 4: AI out of the game.

104
00:04:30,240 --> 00:04:31,640
Speaker 7: I mean, I think that that's going to be a

105
00:04:31,720 --> 00:04:34,680
Speaker 7: huge focus within the government. I mean, government's been way

106
00:04:34,760 --> 00:04:37,160
Speaker 7: behind when it comes to AI. That's going to be

107
00:04:37,279 --> 00:04:41,400
Speaker 7: huge initiatives. I think through D O D, through the agency.

108
00:04:41,560 --> 00:04:45,159
Speaker 7: Is that's gonna be borged for Microsoft, borge for Amazon,

109
00:04:45,240 --> 00:04:46,839
Speaker 7: borge for good good Google.

110
00:04:47,000 --> 00:04:48,200
Speaker 5: Names like par and Teer.

111
00:04:48,720 --> 00:04:51,000
Speaker 7: I think that's other names that are going to benefit

112
00:04:51,080 --> 00:04:55,680
Speaker 7: here in what is a gordon aede for AI and Palenteer.

113
00:04:55,760 --> 00:04:58,039
Speaker 4: There's the link with government. I want to ask you

114
00:04:58,040 --> 00:05:00,320
Speaker 4: about Elon Musk, and if you'll allow me, let me

115
00:05:00,360 --> 00:05:02,479
Speaker 4: just put it this way. Because the market tried to

116
00:05:02,480 --> 00:05:06,279
Speaker 4: make sense of the Tesla move, It's believed that Trump

117
00:05:06,279 --> 00:05:10,039
Speaker 4: will repeal some or all of what's legislated for on

118
00:05:10,080 --> 00:05:15,240
Speaker 4: the EV consumer incentive side, manufacturing support for the companies themselves,

119
00:05:15,640 --> 00:05:20,400
Speaker 4: there's the association tailwind between Musk and Trump. Why is

120
00:05:20,440 --> 00:05:23,039
Speaker 4: it that Tesla survives and stands out to your mind,

121
00:05:23,279 --> 00:05:26,279
Speaker 4: but gm Ford rivian names like that won't do as well.

122
00:05:26,440 --> 00:05:28,560
Speaker 7: Sure, I think it's a great point where it's good

123
00:05:28,680 --> 00:05:33,800
Speaker 7: two parts. One by removing the credits seventy five hundred,

124
00:05:34,400 --> 00:05:36,359
Speaker 7: that's going to give much more even playing field. I

125
00:05:36,400 --> 00:05:38,440
Speaker 7: mean task as a scale and scope, They're going to

126
00:05:38,520 --> 00:05:42,599
Speaker 7: be hugely advantaged there versus the Detroit Star Wars. So

127
00:05:42,640 --> 00:05:46,400
Speaker 7: that's bullege there in terms of giving them that availability.

128
00:05:46,440 --> 00:05:48,839
Speaker 7: And I think option you know, to the automate, they

129
00:05:48,839 --> 00:05:51,279
Speaker 7: can still cut prices more. But the big thing, the

130
00:05:51,400 --> 00:05:54,200
Speaker 7: reason that this stock, I believe it's a trillion dollars

131
00:05:54,680 --> 00:05:58,480
Speaker 7: of value unlocked when it comes to the AIPS because

132
00:05:58,680 --> 00:06:01,120
Speaker 7: when you look at Trump, this is going to give

133
00:06:01,160 --> 00:06:04,880
Speaker 7: the highway the autobond for autonomous I think he is

134
00:06:04,920 --> 00:06:08,760
Speaker 7: going to fast track autonomous FSD. That is very bullish

135
00:06:08,839 --> 00:06:12,360
Speaker 7: for Tesla. And it comes down to from Musk one

136
00:06:12,360 --> 00:06:16,760
Speaker 7: of the best strategic bets he ever made was ultimately

137
00:06:16,800 --> 00:06:18,440
Speaker 7: this bet on Trump.

138
00:06:19,120 --> 00:06:20,320
Speaker 3: It's the technology ready.

139
00:06:21,520 --> 00:06:22,040
Speaker 5: I think the.

140
00:06:22,000 --> 00:06:25,320
Speaker 7: Technology is not maybe not necessarily ready today in its

141
00:06:25,360 --> 00:06:28,360
Speaker 7: current form, but it's going to a point that this

142
00:06:28,480 --> 00:06:31,200
Speaker 7: is ultimately going to be. When I look at autonomous

143
00:06:31,200 --> 00:06:35,680
Speaker 7: and FSD, it's a trillion dollar incremental valuation. You could

144
00:06:35,680 --> 00:06:39,599
Speaker 7: cyber cabs, you could ultimately see twenty twenty six, twenty

145
00:06:39,720 --> 00:06:41,960
Speaker 7: seven initiatives, get fast tracked.

146
00:06:42,320 --> 00:06:42,839
Speaker 5: Tesla.

147
00:06:43,400 --> 00:06:47,400
Speaker 7: Musk is the big winner in this called Trump sweepstakes,

148
00:06:47,640 --> 00:06:50,160
Speaker 7: along with big tech because the other view is that

149
00:06:50,320 --> 00:06:53,279
Speaker 7: Khan is likely going to be out the FTC and

150
00:06:53,279 --> 00:06:56,080
Speaker 7: that's bullish for deal making across big tech.

151
00:06:56,960 --> 00:06:59,000
Speaker 2: Okay, there's a lot to be butish about, but one

152
00:06:59,040 --> 00:07:02,599
Speaker 2: area of concern has been well, yes, AI will be fueled,

153
00:07:02,600 --> 00:07:04,440
Speaker 2: but what about the infrastructure for AI? A lot of

154
00:07:04,440 --> 00:07:07,880
Speaker 2: that comes with growing chip sector here in the United States,

155
00:07:07,880 --> 00:07:10,960
Speaker 2: and that's dependent on well, in many ways, the Chips Act.

156
00:07:11,240 --> 00:07:12,720
Speaker 3: Maybe that gets blown out in the water.

157
00:07:12,920 --> 00:07:15,280
Speaker 7: Yes, I think when it comes to Chips or Inflationial

158
00:07:15,280 --> 00:07:17,800
Speaker 7: Reduction Act, clearly there's gonna be a lot of revisions there.

159
00:07:18,000 --> 00:07:20,559
Speaker 7: I think probably the biggest loser negative would be names

160
00:07:20,560 --> 00:07:23,760
Speaker 7: like Intel. You're just adding to that pain. But from

161
00:07:23,800 --> 00:07:25,480
Speaker 7: a chip perspective.

162
00:07:25,000 --> 00:07:27,040
Speaker 3: You think Intel will be a loser that well, for.

163
00:07:27,200 --> 00:07:29,920
Speaker 7: I think Intel has been a loser. This is just

164
00:07:30,000 --> 00:07:33,360
Speaker 7: putting really adding gasoline to the fire in terms of

165
00:07:34,080 --> 00:07:36,720
Speaker 7: IRA was really going to be a huge opportunity for Intel.

166
00:07:37,000 --> 00:07:39,800
Speaker 7: I think Intel now is on the wrong side that trend.

167
00:07:39,840 --> 00:07:41,720
Speaker 7: I think what you're going to see with IRA and

168
00:07:41,720 --> 00:07:45,000
Speaker 7: inflacial Reduction act much more focus on chips in the US,

169
00:07:45,040 --> 00:07:47,760
Speaker 7: but really much more focus on the AI build out.

170
00:07:48,120 --> 00:07:49,720
Speaker 7: And I think when it comes to some of the

171
00:07:49,760 --> 00:07:52,120
Speaker 7: tariffs that we talked about with China, I think there

172
00:07:52,160 --> 00:07:53,400
Speaker 7: will be carve outs.

173
00:07:53,760 --> 00:07:54,800
Speaker 1: That's why I don't.

174
00:07:54,560 --> 00:07:57,600
Speaker 7: Think that Nvidia is going to be so negatively impacted.

175
00:07:57,880 --> 00:07:59,680
Speaker 7: I don't think a lot of these other names in

176
00:07:59,720 --> 00:08:03,160
Speaker 7: terms of the tafts, I think Tesla Apple. That's also

177
00:08:03,200 --> 00:08:05,680
Speaker 7: why it's so important that Musk is going to be

178
00:08:05,760 --> 00:08:07,480
Speaker 7: a whisper in the White House.

179
00:08:07,520 --> 00:08:09,560
Speaker 2: I'm going to let you put your ifvback on because

180
00:08:09,560 --> 00:08:11,600
Speaker 2: I know Ed wants to jump in here, but I'm

181
00:08:11,600 --> 00:08:14,680
Speaker 2: interested in basically, you think Trump isn't going to live

182
00:08:14,760 --> 00:08:16,040
Speaker 2: up to a lot of the things he promised on

183
00:08:16,040 --> 00:08:16,560
Speaker 2: the campaign.

184
00:08:16,640 --> 00:08:18,440
Speaker 7: I think bar's going to be a lot worse than

185
00:08:18,480 --> 00:08:21,120
Speaker 7: the bite. When it comes to some of the tariffs,

186
00:08:21,360 --> 00:08:24,040
Speaker 7: you have some that'll be much more nastier. But when

187
00:08:24,080 --> 00:08:26,320
Speaker 7: it comes to some of the exports that we see.

188
00:08:26,480 --> 00:08:28,880
Speaker 7: I think it's you're gonna see carve outs here. I

189
00:08:28,920 --> 00:08:30,680
Speaker 7: don't think it's gonna be as negative for tech and

190
00:08:30,760 --> 00:08:33,840
Speaker 7: supply chain. That's why right now this is a Goldielox

191
00:08:33,920 --> 00:08:38,479
Speaker 7: scenario for tech, but it's a champagne moment for Tesla investors.

192
00:08:39,559 --> 00:08:43,840
Speaker 5: Dan, you can hear me? Well, can hearn?

193
00:08:44,000 --> 00:08:44,120
Speaker 4: You?

194
00:08:44,120 --> 00:08:45,040
Speaker 5: Give you a second? O? Good?

195
00:08:45,040 --> 00:08:48,200
Speaker 4: All right, here's the question, be honest with me. Can

196
00:08:48,240 --> 00:08:50,439
Speaker 4: Elon Musk have an.

197
00:08:49,960 --> 00:08:52,080
Speaker 5: Informal all formal.

198
00:08:51,800 --> 00:08:55,040
Speaker 4: Role in the administration and be the CEO of Tesla,

199
00:08:55,360 --> 00:08:59,240
Speaker 4: SpaceX associated with Neuralink boring company, et cetera.

200
00:09:00,360 --> 00:09:03,320
Speaker 7: Yes, I think he won't clearly have a formal role

201
00:09:03,360 --> 00:09:06,800
Speaker 7: from a cabinet perspective. Why not kidding, because then it

202
00:09:06,920 --> 00:09:10,080
Speaker 7: complicates in terms of his ownership and I think some

203
00:09:10,120 --> 00:09:11,920
Speaker 7: of the structure in terms of what we see with

204
00:09:12,200 --> 00:09:14,719
Speaker 7: Tesso with space X. But I believe he'll be an

205
00:09:14,800 --> 00:09:18,760
Speaker 7: unofficial whisper. I think he'll have a significant influence within

206
00:09:18,800 --> 00:09:19,560
Speaker 7: the White House.

207
00:09:20,200 --> 00:09:21,959
Speaker 5: And that's why this is going to be.

208
00:09:21,960 --> 00:09:26,000
Speaker 7: Known as probably the best strategic bet that Musk ever

209
00:09:26,120 --> 00:09:29,480
Speaker 7: made in terms of betting on Trump. And I think

210
00:09:29,559 --> 00:09:32,720
Speaker 7: you know this is something that is just starting to

211
00:09:32,760 --> 00:09:38,000
Speaker 7: play out in terms of this Trump Musk sort of alliance.

212
00:09:38,320 --> 00:09:41,440
Speaker 3: That i'ves and Webbush. I appreciate you coming on today.

213
00:09:41,800 --> 00:09:44,520
Speaker 2: Meanwhile, coming up, we speak with m CEO Rene has

214
00:09:44,760 --> 00:09:46,440
Speaker 2: hosts the chip designers earnings.

215
00:09:46,520 --> 00:09:47,000
Speaker 3: That's next.

216
00:09:47,000 --> 00:09:58,520
Speaker 8: This is bely Me Technology.

217
00:10:07,040 --> 00:10:08,800
Speaker 2: Let's just dive into the markets a little bit more

218
00:10:08,840 --> 00:10:10,360
Speaker 2: and check out chipmakers in particular.

219
00:10:10,520 --> 00:10:13,880
Speaker 3: I'll bring you the socks. Of course. The Semiconductor index currently.

220
00:10:13,600 --> 00:10:15,640
Speaker 2: Out one point six percent, having a lovely couple of days,

221
00:10:15,679 --> 00:10:18,240
Speaker 2: were up more than almost four point seventy five, call

222
00:10:18,280 --> 00:10:20,440
Speaker 2: it five percent over the last couple of training days.

223
00:10:20,440 --> 00:10:22,840
Speaker 2: Most in the green qualcom just holding on to its gains.

224
00:10:23,040 --> 00:10:25,199
Speaker 2: It has come down from what had been in excess

225
00:10:25,240 --> 00:10:27,600
Speaker 2: of four five percent higher earlier. We're up seven tens

226
00:10:27,600 --> 00:10:30,480
Speaker 2: of percent. They're giving a bullish sales forecast, expecting revenue

227
00:10:30,520 --> 00:10:32,280
Speaker 2: of ten and a half to eleven point three billion

228
00:10:32,320 --> 00:10:35,440
Speaker 2: dollars in the current quarter. They beat analyst expectations and

229
00:10:35,440 --> 00:10:37,880
Speaker 2: their profit came in better than expected as well. Moving

230
00:10:37,880 --> 00:10:39,960
Speaker 2: on to ARM, which has come from what was in

231
00:10:40,000 --> 00:10:42,959
Speaker 2: the red pre market training to a higher three and

232
00:10:43,000 --> 00:10:45,679
Speaker 2: a half percent. Now this is they too really managed

233
00:10:45,720 --> 00:10:47,640
Speaker 2: to beat out the gate when it comes to the

234
00:10:47,679 --> 00:10:50,720
Speaker 2: both the top and bottom line. The company's revenue forecast

235
00:10:50,840 --> 00:10:52,280
Speaker 2: was a bit of a concern nine hundred and twenty

236
00:10:52,320 --> 00:10:55,040
Speaker 2: million to nine hundred and seventy million, which perhaps just fell.

237
00:10:54,880 --> 00:10:56,400
Speaker 3: Short of some expectations.

238
00:10:56,600 --> 00:10:58,800
Speaker 2: But they really are maintaining their annual forecasts of three

239
00:10:58,800 --> 00:11:01,000
Speaker 2: point eight to four point one billion dollars in sales.

240
00:11:01,440 --> 00:11:03,319
Speaker 2: So let's get into it all a little bit more.

241
00:11:03,320 --> 00:11:05,960
Speaker 4: At Yeah, I think the shares are so interesting for

242
00:11:06,000 --> 00:11:08,120
Speaker 4: maybe it's a company reporting November fifth, and it took

243
00:11:08,120 --> 00:11:10,199
Speaker 4: time for the market to wake up and read the

244
00:11:10,280 --> 00:11:11,000
Speaker 4: numbers a little bit.

245
00:11:11,000 --> 00:11:14,280
Speaker 5: Who knows. The chip maker did give what was seen.

246
00:11:14,120 --> 00:11:17,640
Speaker 4: As a sluggish sales outlook and at first disappointed investors.

247
00:11:17,640 --> 00:11:20,440
Speaker 4: What has changed, Rene Huss is the CEO of ARM

248
00:11:20,480 --> 00:11:23,000
Speaker 4: and joins us. Now it's really interesting, right and the

249
00:11:23,000 --> 00:11:27,520
Speaker 4: function of what ARM does on licensing royalties, because sometimes

250
00:11:27,559 --> 00:11:28,960
Speaker 4: it's not about unit growth.

251
00:11:29,000 --> 00:11:30,199
Speaker 5: I look at like revenue.

252
00:11:30,200 --> 00:11:33,760
Speaker 4: For example, maybe some evidence renee that the Chinese consumer

253
00:11:33,840 --> 00:11:35,920
Speaker 4: in particular is buying higher end handsets.

254
00:11:36,200 --> 00:11:37,600
Speaker 5: How does that help you benefit?

255
00:11:39,400 --> 00:11:42,240
Speaker 9: Well, good morning Eda and Caroline, and we are very

256
00:11:42,240 --> 00:11:45,040
Speaker 9: happy about the quarter. We just reported the high end

257
00:11:45,040 --> 00:11:48,680
Speaker 9: of the guidance, and our royalties were at a record number.

258
00:11:48,760 --> 00:11:51,400
Speaker 9: And to your question, you know, one of the things

259
00:11:51,400 --> 00:11:53,480
Speaker 9: that we have seen a huge benefit from with our

260
00:11:53,520 --> 00:11:56,920
Speaker 9: technology going forward has been our Version nine, which commands

261
00:11:56,960 --> 00:11:59,080
Speaker 9: a much higher royalty rate than we have in the past.

262
00:11:59,160 --> 00:12:02,280
Speaker 9: And what that allows to do is not exactly track

263
00:12:02,360 --> 00:12:05,040
Speaker 9: the market from a unit standpoint. One of the proof

264
00:12:05,040 --> 00:12:08,199
Speaker 9: points of that unit sales for smartphones we're up four

265
00:12:08,240 --> 00:12:11,680
Speaker 9: percent in the last quarter. Our royalties we're up forty percent.

266
00:12:12,200 --> 00:12:14,240
Speaker 9: So you can get a sense that you're seeing a

267
00:12:14,320 --> 00:12:17,400
Speaker 9: very big difference that's really driven by two factors. One

268
00:12:17,440 --> 00:12:19,480
Speaker 9: is Version nine, as I said, which commands a high

269
00:12:19,520 --> 00:12:23,280
Speaker 9: royalty rate. And second, we're just seeing more arm technology

270
00:12:23,800 --> 00:12:27,480
Speaker 9: inside these smartphones, particularly the premium segment, which also commands

271
00:12:27,480 --> 00:12:29,719
Speaker 9: a high royalty rene.

272
00:12:29,800 --> 00:12:31,439
Speaker 4: A lot of investors and people that I speak to

273
00:12:31,480 --> 00:12:33,760
Speaker 4: in the world of technology think you're great. You're a

274
00:12:33,800 --> 00:12:37,000
Speaker 4: great CEO, and you've been embarked on this sort of

275
00:12:37,080 --> 00:12:40,640
Speaker 4: journey for profit and margin. But is there a ceiling

276
00:12:40,679 --> 00:12:43,319
Speaker 4: to that, Like, at some point, how do you keep

277
00:12:43,440 --> 00:12:46,120
Speaker 4: driving those letters? Are you sort of very pricing dependent

278
00:12:46,200 --> 00:12:46,920
Speaker 4: at this point?

279
00:12:48,520 --> 00:12:49,240
Speaker 5: I don't think so.

280
00:12:49,480 --> 00:12:52,760
Speaker 9: You know, the market that we're addressing is very, very large,

281
00:12:53,360 --> 00:12:55,320
Speaker 9: and one of the things that has made it even

282
00:12:55,400 --> 00:12:58,080
Speaker 9: larger has been all things AI. And if you think

283
00:12:58,120 --> 00:13:00,880
Speaker 9: about what ARM does, we do compute, we do the CPU.

284
00:13:01,160 --> 00:13:04,040
Speaker 9: Every digital device has one. And the fact that you're

285
00:13:04,120 --> 00:13:07,320
Speaker 9: running all these AI workloads on devices that are already

286
00:13:07,360 --> 00:13:09,760
Speaker 9: running different applications that they had to in the past,

287
00:13:10,200 --> 00:13:12,599
Speaker 9: that drives a need for more and more compute capacity,

288
00:13:12,640 --> 00:13:15,680
Speaker 9: which ends up ending up with ARM. So as a result,

289
00:13:15,720 --> 00:13:18,839
Speaker 9: we were very, very fortunate to have some tailwinds from

290
00:13:18,840 --> 00:13:21,800
Speaker 9: a technology standpoint driving our growth. So as far as

291
00:13:21,800 --> 00:13:23,800
Speaker 9: the ceiling, I don't think about it quite that way,

292
00:13:24,320 --> 00:13:26,520
Speaker 9: but I do think where we are is a market

293
00:13:26,559 --> 00:13:29,559
Speaker 9: where we just can't get enough compute capacity for all

294
00:13:29,559 --> 00:13:31,200
Speaker 9: these workloads that are going to be running on every

295
00:13:31,200 --> 00:13:33,920
Speaker 9: device in your home or your business.

296
00:13:34,559 --> 00:13:37,640
Speaker 2: Meanwhile, though, perhaps some of the tension around compute and

297
00:13:37,760 --> 00:13:40,600
Speaker 2: AI has been whether China is going to quote unquote

298
00:13:40,600 --> 00:13:43,040
Speaker 2: beat out the United States, and that suddenly comes into

299
00:13:43,559 --> 00:13:46,760
Speaker 2: a closer focus, particularly with the results of the US election.

300
00:13:47,040 --> 00:13:49,280
Speaker 2: Does any of that concern you, particularly around the trade

301
00:13:49,280 --> 00:13:52,920
Speaker 2: and embroilment and whether that courtails the industry and going forward.

302
00:13:54,120 --> 00:13:57,080
Speaker 9: Yeah, a little hard to say, Caroline, relative to what

303
00:13:57,480 --> 00:14:00,560
Speaker 9: could happen from perspective of tariffs, etc. I think the

304
00:14:00,600 --> 00:14:04,560
Speaker 9: one thing that I'm happy about post the election on

305
00:14:04,600 --> 00:14:07,080
Speaker 9: Tuesday is that here we are on Thursday morning and

306
00:14:07,120 --> 00:14:10,559
Speaker 9: we have a result. We're not debating about what might

307
00:14:10,600 --> 00:14:13,040
Speaker 9: happen or could happen or should happen. We at least

308
00:14:13,080 --> 00:14:15,760
Speaker 9: have a result behind us, which is good for business,

309
00:14:15,800 --> 00:14:18,520
Speaker 9: it's good for the country. Now going forward, we'll just

310
00:14:18,559 --> 00:14:22,080
Speaker 9: have to see what goes forward. In terms of the

311
00:14:22,120 --> 00:14:24,800
Speaker 9: things you mentioned, the China business for US has been

312
00:14:25,040 --> 00:14:28,560
Speaker 9: very resilient and very strong, both in data center and

313
00:14:28,600 --> 00:14:31,480
Speaker 9: phones that we've talked about, but also in the automobile sector.

314
00:14:31,560 --> 00:14:33,840
Speaker 9: So regarding your question, we'll just have to wait and see.

315
00:14:34,680 --> 00:14:35,200
Speaker 3: Talk to us a.

316
00:14:35,200 --> 00:14:38,400
Speaker 2: Little bit about the phone part, and in particular whether

317
00:14:38,520 --> 00:14:41,560
Speaker 2: or not just us replacing less often but with much

318
00:14:41,600 --> 00:14:44,400
Speaker 2: more expensive phones is going to be able to what

319
00:14:44,800 --> 00:14:47,440
Speaker 2: makes your numbers resilient going forward? Will that continue to

320
00:14:47,560 --> 00:14:50,080
Speaker 2: upset the fact that we're just buying fewer on them.

321
00:14:50,800 --> 00:14:53,560
Speaker 9: I do, and the reason for that is when you

322
00:14:53,600 --> 00:14:56,600
Speaker 9: start thinking about all of these AI agents that will

323
00:14:56,680 --> 00:14:59,920
Speaker 9: increasingly be running on your smartphone, that is going to

324
00:15:00,160 --> 00:15:04,440
Speaker 9: drive demand for more and more capability on these premium phones.

325
00:15:04,800 --> 00:15:07,560
Speaker 9: And that's great for ARM because if you think about

326
00:15:07,640 --> 00:15:10,040
Speaker 9: a next generation smartphone still has to run games, it

327
00:15:10,040 --> 00:15:11,880
Speaker 9: still has to run apps, it still has to connect

328
00:15:11,880 --> 00:15:14,040
Speaker 9: to the internet. But now you want to run a

329
00:15:14,120 --> 00:15:16,360
Speaker 9: large language model or a small language model, and you

330
00:15:16,400 --> 00:15:19,360
Speaker 9: need to interface with a cloud and do security. That

331
00:15:19,520 --> 00:15:22,120
Speaker 9: all requires a lot of compute, much more than in

332
00:15:22,160 --> 00:15:25,600
Speaker 9: the past, which is great for ARM because you can't

333
00:15:25,600 --> 00:15:27,240
Speaker 9: do it without using our technology.

334
00:15:28,640 --> 00:15:33,280
Speaker 4: Renee Bloomberg reported that ARM was interested in buying some

335
00:15:33,760 --> 00:15:34,880
Speaker 4: or all of Intel.

336
00:15:35,200 --> 00:15:39,200
Speaker 5: What's the latest for that, please? Yeah, I read that.

337
00:15:39,320 --> 00:15:42,120
Speaker 9: I'm not sure exactly where it came from, but I

338
00:15:42,160 --> 00:15:43,880
Speaker 9: can't really comment on those kind of rumors.

339
00:15:45,560 --> 00:15:50,480
Speaker 4: Small recent is a licensed dispute with Qualcom, a longtime

340
00:15:50,680 --> 00:15:54,160
Speaker 4: partner and customer of yours. Wouldn't it just makes sense

341
00:15:54,200 --> 00:15:56,200
Speaker 4: for you guys to work it out and settle and

342
00:15:56,240 --> 00:15:58,600
Speaker 4: get something done so you can both just move forward.

343
00:16:00,680 --> 00:16:00,880
Speaker 10: Yeah.

344
00:16:00,880 --> 00:16:02,880
Speaker 9: So it's an ongoing litigation, as you know, and in

345
00:16:03,000 --> 00:16:04,360
Speaker 9: just the baseline things, it's.

346
00:16:04,280 --> 00:16:05,800
Speaker 5: A pretty straightforward case.

347
00:16:06,720 --> 00:16:10,560
Speaker 9: Consent is required anytime one company buys another company that

348
00:16:10,600 --> 00:16:14,440
Speaker 9: has ARMED technology. Consent was not granted in this case,

349
00:16:14,800 --> 00:16:17,480
Speaker 9: and just by way of history, every contract we have

350
00:16:17,560 --> 00:16:20,280
Speaker 9: has this clause, and in thirty five years, I think

351
00:16:20,280 --> 00:16:23,160
Speaker 9: we've done one hundred and thirty assignments and one hundred

352
00:16:23,160 --> 00:16:26,760
Speaker 9: and thirty times consent has been granted. This time it wasn't.

353
00:16:27,360 --> 00:16:29,840
Speaker 9: We sent a notification to QUALKM that they were in

354
00:16:29,840 --> 00:16:33,040
Speaker 9: breach of the license. We're very confident in our case.

355
00:16:33,400 --> 00:16:37,480
Speaker 9: But more importantly, this is about fairness. It's about equity

356
00:16:37,480 --> 00:16:40,640
Speaker 9: the ecosystem. We have lots of partners who've license our

357
00:16:40,680 --> 00:16:43,440
Speaker 9: technology over the last decades. We need to be fair

358
00:16:43,440 --> 00:16:46,360
Speaker 9: and equitable, and we just now have a situation, an

359
00:16:46,440 --> 00:16:51,400
Speaker 9: unprecedented one where consent was not granted, and as a result,

360
00:16:51,800 --> 00:16:53,480
Speaker 9: we took the action we felt we needed to take.

361
00:16:54,120 --> 00:16:57,240
Speaker 2: How is it doing business therefore with what is a

362
00:16:57,320 --> 00:16:59,840
Speaker 2: key customer but increasingly becoming more of a front of me.

363
00:17:01,920 --> 00:17:04,640
Speaker 9: Well, you know, in terms of the litigations, I said,

364
00:17:04,640 --> 00:17:06,480
Speaker 9: there's not much more I can add on to it.

365
00:17:07,080 --> 00:17:11,440
Speaker 9: From a financial standpoint, we've made assumptions all along when

366
00:17:11,440 --> 00:17:14,480
Speaker 9: we've given guidance and forecast to investors that we will

367
00:17:14,480 --> 00:17:18,280
Speaker 9: not prevail in this case. So we've taken a fairly

368
00:17:18,800 --> 00:17:22,440
Speaker 9: bearish position on the financial outlook, and that's really about

369
00:17:22,720 --> 00:17:23,800
Speaker 9: about all I can say on it.

370
00:17:24,720 --> 00:17:27,840
Speaker 4: RENEE at the end, market level and product level. What

371
00:17:28,000 --> 00:17:30,760
Speaker 4: is the next phase farm, what's the next story that

372
00:17:30,800 --> 00:17:32,399
Speaker 4: you think will carry the company forward?

373
00:17:34,480 --> 00:17:37,720
Speaker 9: Thanks for asking that question. You know, compute subsystems and

374
00:17:37,760 --> 00:17:41,000
Speaker 9: these are all about taking the pieces of IP, stitching

375
00:17:41,000 --> 00:17:44,200
Speaker 9: them together together, providing them as a full end solution

376
00:17:44,800 --> 00:17:48,119
Speaker 9: which greatly saves engineering time, time to market, time to

377
00:17:48,160 --> 00:17:52,240
Speaker 9: profit for our partners. That is the direction of the company.

378
00:17:52,359 --> 00:17:55,840
Speaker 9: We've seen amazing traction. We've had lots of design wins

379
00:17:55,880 --> 00:17:59,119
Speaker 9: in the data center space. Media Tech just announced their

380
00:17:59,119 --> 00:18:02,720
Speaker 9: first chip set recently using ARM computer subsystems for mobile.

381
00:18:03,280 --> 00:18:05,960
Speaker 9: I see that to be pervasive going forward, and it's

382
00:18:05,960 --> 00:18:08,800
Speaker 9: going to allow us to not only get great benefits

383
00:18:08,800 --> 00:18:12,240
Speaker 9: to the customers' markets, but those drive much higher royalties

384
00:18:12,280 --> 00:18:14,199
Speaker 9: than anything we've ever done in the past, which will

385
00:18:14,280 --> 00:18:15,160
Speaker 9: drive growth for us.

386
00:18:16,320 --> 00:18:19,239
Speaker 2: Just paint the picture of where ARM will be in

387
00:18:19,280 --> 00:18:24,080
Speaker 2: the ecosystem five ten years from now. You're still majority

388
00:18:24,119 --> 00:18:26,679
Speaker 2: held by soft Bank in terms of your outstanding shares.

389
00:18:26,960 --> 00:18:29,520
Speaker 2: Massa has some big vision one hundred billion dollars to

390
00:18:29,520 --> 00:18:33,720
Speaker 2: put in in terms of creating an AI behemoth.

391
00:18:33,200 --> 00:18:34,760
Speaker 3: That complements what you do.

392
00:18:35,200 --> 00:18:37,159
Speaker 2: But then there's also the element of whether you just

393
00:18:37,160 --> 00:18:39,160
Speaker 2: stick to the designing part of the business.

394
00:18:39,320 --> 00:18:41,720
Speaker 3: Where do you take this business? Renee as a CEO.

395
00:18:43,080 --> 00:18:45,280
Speaker 9: We have a lot of optionality, Caroline in terms of

396
00:18:45,320 --> 00:18:46,600
Speaker 9: the things that we do, and these are obviously the

397
00:18:46,640 --> 00:18:50,159
Speaker 9: things we talk about all the time internally. Which direction

398
00:18:50,240 --> 00:18:52,800
Speaker 9: do we go, how horizontal do we go, how vertical

399
00:18:52,840 --> 00:18:55,800
Speaker 9: do we go. I'm not able, unfortunately to talk about

400
00:18:56,000 --> 00:18:58,840
Speaker 9: unannounced products this morning with you, although I would love to,

401
00:18:58,880 --> 00:19:03,080
Speaker 9: but I just can't. But we do focus very much.

402
00:19:03,160 --> 00:19:06,560
Speaker 9: We do focus very much on the vertical and horizontal

403
00:19:06,640 --> 00:19:11,200
Speaker 9: nature of the products and also AI and the form

404
00:19:11,240 --> 00:19:12,320
Speaker 9: factors and everything.

405
00:19:12,040 --> 00:19:12,719
Speaker 1: That goes forward.

406
00:19:12,800 --> 00:19:15,400
Speaker 9: So five to ten years ago from five tent years

407
00:19:15,400 --> 00:19:17,240
Speaker 9: from now, I do know that ARM will be involved

408
00:19:17,240 --> 00:19:18,680
Speaker 9: in computing in a very large way.

409
00:19:19,560 --> 00:19:22,240
Speaker 2: I'm CEO and A has you appreciate the time today,

410
00:19:22,240 --> 00:19:22,639
Speaker 2: Thank you.

411
00:19:23,440 --> 00:19:25,600
Speaker 11: I think av's are going to be a huge accelerant.

412
00:19:25,720 --> 00:19:29,520
Speaker 11: Actually you say a TAM expander addressable work an expander

413
00:19:29,560 --> 00:19:31,359
Speaker 11: for LYFT, because I think.

414
00:19:31,200 --> 00:19:33,440
Speaker 3: What it's going to do is it's going to bring.

415
00:19:33,440 --> 00:19:35,919
Speaker 11: New product onto the platform that people are going to like.

416
00:19:36,200 --> 00:19:37,840
Speaker 11: Some people are going to like being driven by human.

417
00:19:38,040 --> 00:19:39,720
Speaker 11: Some people are going to think being driven by robot

418
00:19:39,800 --> 00:19:42,480
Speaker 11: is pretty cool. Some use cases favor one of the other.

419
00:19:42,560 --> 00:19:44,760
Speaker 11: So anyway, I think the hybrid future is what we're

420
00:19:44,760 --> 00:19:47,520
Speaker 11: looking at over time. Now Mobili they make the sensors,

421
00:19:47,560 --> 00:19:49,119
Speaker 11: they made the tech. You probably have them in your

422
00:19:49,119 --> 00:19:52,439
Speaker 11: car right now, Lay and assist, smart cruise control, all

423
00:19:52,480 --> 00:19:55,480
Speaker 11: that stuff that's level two, level four is full self driving.

424
00:19:55,520 --> 00:19:56,480
Speaker 5: So imagine a world.

425
00:19:58,359 --> 00:20:01,399
Speaker 2: We now go to the President States Biden addressing the

426
00:20:01,400 --> 00:20:02,560
Speaker 2: public from the Rose Garden.

427
00:20:02,880 --> 00:20:03,479
Speaker 8: That's listening.

428
00:20:04,040 --> 00:20:06,720
Speaker 1: Good to see this cabinet and the staff together here.

429
00:20:09,640 --> 00:20:21,119
Speaker 10: Thank you, thank you, thank you, thank you, please, thank you,

430
00:20:21,280 --> 00:20:22,080
Speaker 10: thank you, thank you.

431
00:20:24,560 --> 00:20:26,880
Speaker 1: It's good to see you all. Particularly good to see

432
00:20:26,880 --> 00:20:31,119
Speaker 1: my granddaughter sitting in the front row here at Fann Hawaii. Honey.

433
00:20:31,440 --> 00:20:34,960
Speaker 1: For over two hundred years, America has carried on the

434
00:20:35,040 --> 00:20:39,800
Speaker 1: greatest experiment in self government and history of the world.

435
00:20:40,280 --> 00:20:44,240
Speaker 1: That's not hyperbole, that's a fact. For the people. The

436
00:20:44,280 --> 00:20:47,199
Speaker 1: people vote and choose their own leaders, and they do

437
00:20:47,240 --> 00:20:51,439
Speaker 1: it peacefully. And we're in a democracy. The will of

438
00:20:51,480 --> 00:20:57,400
Speaker 1: the people always prevails. Yesterday I spoke with President elect

439
00:20:57,400 --> 00:21:01,560
Speaker 1: Trump to congratulate him on his victory, and I assured

440
00:21:01,640 --> 00:21:05,439
Speaker 1: him I direct my entire administration to work with his

441
00:21:05,560 --> 00:21:10,800
Speaker 1: team to ensure a peaceful and orderly transition. That's what

442
00:21:10,840 --> 00:21:16,360
Speaker 1: the American people deserve. Yesterday I also spoke Vice President Harris.

443
00:21:17,440 --> 00:21:21,520
Speaker 1: She's been a partner and a public servant. She ran

444
00:21:21,560 --> 00:21:24,920
Speaker 1: an inspiring campaign and everyone got to see something that

445
00:21:25,000 --> 00:21:28,520
Speaker 1: I've learned early on to respect so much her character.

446
00:21:29,640 --> 00:21:32,480
Speaker 1: She has a backbone like a ramrod. She has great character,

447
00:21:32,640 --> 00:21:36,919
Speaker 1: true character. She gave her whole heart and effort, and

448
00:21:36,960 --> 00:21:38,960
Speaker 1: she and her entire team should be proud of the

449
00:21:38,960 --> 00:21:44,280
Speaker 1: campaign they ran. You know, the struggle for the soul

450
00:21:44,320 --> 00:21:49,160
Speaker 1: of America since our very founding has always been an

451
00:21:49,160 --> 00:21:54,960
Speaker 1: ongoing debate and still vital today. I know for some

452
00:21:55,080 --> 00:21:58,679
Speaker 1: people it's a time for victory to state the obvious.

453
00:21:59,119 --> 00:22:04,000
Speaker 1: For others, it's a time of loss. Campaigns, your contest

454
00:22:04,600 --> 00:22:09,000
Speaker 1: of competing visions. The country chooses one or the other.

455
00:22:10,320 --> 00:22:15,000
Speaker 1: We accept the choice the country made. I've said many times,

456
00:22:15,920 --> 00:22:20,959
Speaker 1: you can't love your country only when you win. You

457
00:22:21,080 --> 00:22:27,040
Speaker 1: can't love your neighbor only when you agree something I

458
00:22:27,080 --> 00:22:29,600
Speaker 1: hope we can do. No matter who you voted for

459
00:22:30,680 --> 00:22:34,760
Speaker 1: is see each other not as adversaries, but as fellow Americans.

460
00:22:35,480 --> 00:22:38,960
Speaker 1: Bring down the temperature. I also hope we can later

461
00:22:39,080 --> 00:22:43,320
Speaker 1: rest the question about the integrity of the American electoral system.

462
00:22:43,800 --> 00:22:48,120
Speaker 1: It is honest, it is fair, and it is transparent,

463
00:22:49,840 --> 00:22:54,320
Speaker 1: and it can be trusted, win or lose. I also

464
00:22:54,359 --> 00:22:57,960
Speaker 1: hope we can restore the respect for all our election

465
00:22:58,080 --> 00:23:02,560
Speaker 1: workers who busted their next risks of the outset. We

466
00:23:02,600 --> 00:23:07,280
Speaker 1: should thank them, thank them for staffing voting sites, counting

467
00:23:07,280 --> 00:23:11,920
Speaker 1: the votes, protecting the very integrity of the election. Many

468
00:23:11,960 --> 00:23:15,439
Speaker 1: of them are volunteers who do it simply out of

469
00:23:15,480 --> 00:23:19,840
Speaker 1: love for their country and as they did as they

470
00:23:19,840 --> 00:23:23,200
Speaker 1: did their duty as citizens. I will do my duty

471
00:23:23,200 --> 00:23:28,399
Speaker 1: as president. I'll fulfill my oath and I wanted the Constitution.

472
00:23:29,320 --> 00:23:33,520
Speaker 1: On January twentieth, we'll have a peaceful transfer of power

473
00:23:33,600 --> 00:23:39,800
Speaker 1: here in America. To all our incredible staff, supporters, cabinet members,

474
00:23:39,840 --> 00:23:41,320
Speaker 1: all the people who have been hanging out with me

475
00:23:41,400 --> 00:23:43,240
Speaker 1: for the last forty years. God love you. As my

476
00:23:43,280 --> 00:23:46,439
Speaker 1: mother would say, thank you so much. You put so

477
00:23:46,600 --> 00:23:48,960
Speaker 1: much into the past four years. I know it's a

478
00:23:48,960 --> 00:23:53,280
Speaker 1: difficult time. You're hurting. I hear you, and I see you,

479
00:23:54,200 --> 00:23:58,840
Speaker 1: but don't forget. Don't forget all the we accomplished. It's

480
00:23:58,880 --> 00:24:03,119
Speaker 1: beending historic president, not because I'm president, because what we've done,

481
00:24:03,400 --> 00:24:08,240
Speaker 1: what you've done, a presidency for all Americans. Much of

482
00:24:08,280 --> 00:24:11,440
Speaker 1: the work we've done is already being felt by the

483
00:24:11,480 --> 00:24:13,560
Speaker 1: American people, with the vast majority of it will not

484
00:24:13,640 --> 00:24:17,480
Speaker 1: be felt we felt over the next ten years. We

485
00:24:17,600 --> 00:24:22,200
Speaker 1: have legislation we passed. It's just only now just really

486
00:24:22,280 --> 00:24:26,160
Speaker 1: kicking in. We're going to see over trillion dollars worth

487
00:24:26,160 --> 00:24:30,800
Speaker 1: of infrastructure work done, changing people's lives in rural communities

488
00:24:30,840 --> 00:24:35,680
Speaker 1: and communities that are in real difficulty because it takes

489
00:24:35,760 --> 00:24:40,080
Speaker 1: time to get it done, and so much more. It's

490
00:24:40,080 --> 00:24:44,119
Speaker 1: going to take time, but it's there. The road ahead

491
00:24:44,200 --> 00:24:48,919
Speaker 1: is clear, assuming we sustain it. There's so much, so

492
00:24:49,040 --> 00:24:51,720
Speaker 1: much we can get done and will get done based

493
00:24:51,760 --> 00:24:55,520
Speaker 1: the way the legislation was passed, and it's truly historic.

494
00:24:56,800 --> 00:25:02,480
Speaker 1: You know, we're leaving behind the strongest economy in the world.

495
00:25:02,920 --> 00:25:08,440
Speaker 1: I know people are still hurting, but things are changing rapidly. Together,

496
00:25:08,480 --> 00:25:12,240
Speaker 1: we've changed America for the better. Now we have seventy

497
00:25:12,280 --> 00:25:16,640
Speaker 1: four days to finish the term. Our term. Let's make

498
00:25:16,680 --> 00:25:20,680
Speaker 1: every day count That's the responsibility we have to the

499
00:25:20,720 --> 00:25:25,200
Speaker 1: American people. Look, folks, you all know it in your lives.

500
00:25:25,680 --> 00:25:32,959
Speaker 1: Setbacks are unavoidable, but giving up is unforgivable. Setbacks are unavoidable,

501
00:25:33,000 --> 00:25:37,080
Speaker 1: but giving up is unforgivable. We all get knocked down.

502
00:25:37,840 --> 00:25:39,879
Speaker 1: But the measure of our characters, my dad would say,

503
00:25:39,880 --> 00:25:45,040
Speaker 1: is how quickly we get back up. Remember, a defeat

504
00:25:45,119 --> 00:25:49,120
Speaker 1: does not mean we are defeated. We lost this battle.

505
00:25:50,960 --> 00:25:54,760
Speaker 1: America of your dreams is calling for you to get

506
00:25:54,800 --> 00:25:58,840
Speaker 1: back up. That's the story of America for over two

507
00:25:58,960 --> 00:26:03,760
Speaker 1: hundred and forty years years in counting. It's a story

508
00:26:03,760 --> 00:26:07,119
Speaker 1: for all of us, not just some of us. The

509
00:26:07,119 --> 00:26:12,120
Speaker 1: American Experiment endors. We're going to be okay, but we

510
00:26:12,240 --> 00:26:17,359
Speaker 1: need to stay engaged, We need to keep going, and

511
00:26:17,480 --> 00:26:22,040
Speaker 1: above all, we need to keep the faith. So proud

512
00:26:22,080 --> 00:26:24,760
Speaker 1: to have worked with all of you. I really mean it,

513
00:26:25,320 --> 00:26:30,720
Speaker 1: I sincerely mean it. God bless you all, God bless America,

514
00:26:31,480 --> 00:26:34,040
Speaker 1: and may God protect our troops. Thank you, thank you,

515
00:26:34,119 --> 00:26:34,439
Speaker 1: thank you.

516
00:26:45,640 --> 00:26:48,320
Speaker 4: Let's bring in Bloombak's Katie Lions, who joins us from

517
00:26:48,359 --> 00:26:53,560
Speaker 4: New York City. Kaylee Plice, your summary of President Biden's comments, Well.

518
00:26:53,560 --> 00:26:56,000
Speaker 12: The most important point about this speech from Biden at

519
00:26:56,000 --> 00:26:58,080
Speaker 12: the Rose Garden in the White House that follows the

520
00:26:58,200 --> 00:27:01,360
Speaker 12: speech the concession speech from Vice pres A. Kamala Harris yesterday,

521
00:27:01,400 --> 00:27:04,320
Speaker 12: is that they both are acknowledging the decisive victory of

522
00:27:04,359 --> 00:27:07,760
Speaker 12: Donald Trump and pledging for a peaceful transition of power.

523
00:27:07,760 --> 00:27:09,840
Speaker 12: We just heard President Biden say those words that he

524
00:27:09,920 --> 00:27:12,480
Speaker 12: called to congratulate Donald Trump yesterday, that he will do

525
00:27:12,560 --> 00:27:15,520
Speaker 12: his duty on January twentieth to make sure there is

526
00:27:16,040 --> 00:27:19,080
Speaker 12: a peaceful inauguration of Donald Trump in a power transition

527
00:27:19,600 --> 00:27:22,359
Speaker 12: in the United States, similar in rhetoric to what we

528
00:27:22,400 --> 00:27:25,560
Speaker 12: heard from Kamala Harris yesterday. The suggestion while this specific

529
00:27:25,600 --> 00:27:28,720
Speaker 12: fight was lost as he casts this as campaigns being

530
00:27:28,760 --> 00:27:32,000
Speaker 12: a contest between competing ideas, that that did not necessarily

531
00:27:32,040 --> 00:27:34,879
Speaker 12: mean that there won't be ones one in the future.

532
00:27:34,920 --> 00:27:37,399
Speaker 12: And interesting to also see President Biden here trying to

533
00:27:37,520 --> 00:27:41,359
Speaker 12: characterize his legacy as well, talking about the accomplishments he

534
00:27:41,440 --> 00:27:44,360
Speaker 12: sees this administration having completed, the idea that there's more

535
00:27:44,400 --> 00:27:47,159
Speaker 12: work they will do in seventy four days, because in

536
00:27:47,200 --> 00:27:50,600
Speaker 12: part this is the swan song of song of President Biden,

537
00:27:50,680 --> 00:27:53,320
Speaker 12: who is getting a lot of blame within the Democratic

538
00:27:53,359 --> 00:27:56,240
Speaker 12: Party for the loss of Kamala Harris, the suggestion that

539
00:27:56,320 --> 00:27:59,399
Speaker 12: he stayed in the race too long. He ultimately, of course,

540
00:27:59,400 --> 00:28:01,159
Speaker 12: did not bow out of it in tell July, and

541
00:28:01,200 --> 00:28:03,920
Speaker 12: he is getting a great share of the blame for

542
00:28:03,960 --> 00:28:06,600
Speaker 12: what happened this week and the victory of Donald Trump.

543
00:28:06,680 --> 00:28:09,159
Speaker 12: But again that victory is being acknowledged. They are planning

544
00:28:09,200 --> 00:28:11,760
Speaker 12: to work with the Trump transition team to make sure

545
00:28:11,800 --> 00:28:14,600
Speaker 12: that this all happened smoothly. There could still be some hiccups,

546
00:28:14,600 --> 00:28:17,280
Speaker 12: as Donald Trump is specifically a bit skeptical of the

547
00:28:17,280 --> 00:28:21,040
Speaker 12: General Services Administration, for example, the intelligence agencies that would

548
00:28:21,080 --> 00:28:24,679
Speaker 12: oversee things like background checks for those incoming into the administration.

549
00:28:24,920 --> 00:28:27,040
Speaker 12: So there could still be some hiccups here. But by

550
00:28:27,119 --> 00:28:30,160
Speaker 12: and large, they are committing to a peaceful transfer of power.

551
00:28:30,160 --> 00:28:32,560
Speaker 12: They are conceding that Donald Trump won this race, and

552
00:28:32,600 --> 00:28:34,760
Speaker 12: this is something we did not see four years ago

553
00:28:34,960 --> 00:28:36,879
Speaker 12: in twenty twenty, Katie.

554
00:28:37,440 --> 00:28:40,320
Speaker 2: They then also focus on the seventy four days still

555
00:28:40,360 --> 00:28:43,680
Speaker 2: left to enact policies and indeed what has been achieved

556
00:28:44,760 --> 00:28:47,320
Speaker 2: with there was a mention of infrastructure, and that plays

557
00:28:47,360 --> 00:28:49,160
Speaker 2: a lot to the technology community here.

558
00:28:49,560 --> 00:28:51,120
Speaker 3: How much do you think there will.

559
00:28:50,920 --> 00:28:53,360
Speaker 2: Be any more passing of anything or any more focus

560
00:28:53,400 --> 00:28:56,000
Speaker 2: on and potentially the future.

561
00:28:56,040 --> 00:28:58,520
Speaker 3: If indeed, say a Chipsack is unraveled.

562
00:28:58,360 --> 00:28:59,840
Speaker 12: Well that's going to be something that would be de

563
00:29:00,080 --> 00:29:03,040
Speaker 12: within the next Congress. Obviously, there are still some months

564
00:29:03,040 --> 00:29:06,280
Speaker 12: remaining here for this administration, in this Congress and House

565
00:29:06,320 --> 00:29:08,440
Speaker 12: of Representatives. What they're likely to deal with in the

566
00:29:08,480 --> 00:29:11,800
Speaker 12: lame dunk section session, which do tend to be more

567
00:29:11,840 --> 00:29:14,760
Speaker 12: productive as the campaign has already completed at that time,

568
00:29:14,800 --> 00:29:16,840
Speaker 12: really is going to surround funding, as there is a

569
00:29:16,880 --> 00:29:20,320
Speaker 12: funding deadline, a government funding deadline on the twenty first

570
00:29:20,320 --> 00:29:21,960
Speaker 12: of December. So they will need to make sure that

571
00:29:22,000 --> 00:29:24,720
Speaker 12: the government stays funded for some period of time into

572
00:29:24,720 --> 00:29:27,200
Speaker 12: the next administration first and foremost. But when the new

573
00:29:27,240 --> 00:29:29,400
Speaker 12: Congress is sad and we do not yet know the

574
00:29:29,720 --> 00:29:32,120
Speaker 12: entire makeup of it, Yes, it will be a Republican Senate.

575
00:29:32,160 --> 00:29:34,720
Speaker 12: Whether it stays a Republican House at this time is

576
00:29:34,720 --> 00:29:37,120
Speaker 12: still unclear, and it would take a Republican House likely

577
00:29:37,440 --> 00:29:40,480
Speaker 12: to unravel any of the accomplishments of this administration. Legislation

578
00:29:40,520 --> 00:29:43,120
Speaker 12: pass including the Chips Act, but the Inflation Reduction Act

579
00:29:43,160 --> 00:29:43,560
Speaker 12: as well.

580
00:29:43,760 --> 00:29:47,040
Speaker 2: Whoms Kendie lines, we appreciate it so much on the

581
00:29:47,040 --> 00:29:49,400
Speaker 2: back of that Biden speech. Meanwhile, and let's get back

582
00:29:49,400 --> 00:29:50,320
Speaker 2: to these markets.

583
00:29:50,720 --> 00:29:53,080
Speaker 4: Yeah, and I'd like to go as crypto if that's okay,

584
00:29:53,440 --> 00:29:55,400
Speaker 4: because we didn't have a show twenty four hours ago.

585
00:29:55,600 --> 00:30:00,240
Speaker 4: But within the last twenty four hours, Bitcoin is US

586
00:30:00,280 --> 00:30:03,120
Speaker 4: scott below seventy six thousand US dollars per token and

587
00:30:03,160 --> 00:30:05,440
Speaker 4: it's kind of weird. I'm going to say it out loud,

588
00:30:05,920 --> 00:30:08,560
Speaker 4: but that's all time high, right. I had to pull

589
00:30:08,600 --> 00:30:10,960
Speaker 4: up the GP chart on my Bloomberg terminal and be like, oh,

590
00:30:11,000 --> 00:30:12,760
Speaker 4: this is also happening in real time. And one of

591
00:30:12,760 --> 00:30:14,960
Speaker 4: the big stories, of course of the last twenty four

592
00:30:14,960 --> 00:30:17,920
Speaker 4: hours is some of the crypto related equities or stocks

593
00:30:18,160 --> 00:30:22,760
Speaker 4: companies that either are a marketplace for have exposure to crypto.

594
00:30:23,000 --> 00:30:26,160
Speaker 4: And I think the sentiment is simple, right, Caro, that

595
00:30:26,840 --> 00:30:29,960
Speaker 4: President elect Trump, whether from a policy perspective or his

596
00:30:30,000 --> 00:30:34,320
Speaker 4: own attitude, will approach crypto differently, and largely that's been

597
00:30:34,320 --> 00:30:37,280
Speaker 4: seen as supportive of that industry, even though these specific

598
00:30:37,360 --> 00:30:39,760
Speaker 4: names aren't doing much in either direction in the moment.

599
00:30:40,240 --> 00:30:43,400
Speaker 2: Boy did they move higher yesterday, though we appreciate it.

600
00:30:43,440 --> 00:30:46,000
Speaker 2: And let's go to Noel Aichson who's with US Triple

601
00:30:46,000 --> 00:30:48,520
Speaker 2: Crown digital partner, author of the crypto is macro now

602
00:30:48,560 --> 00:30:51,000
Speaker 2: and someone who put out a great note yesterday that

603
00:30:51,040 --> 00:30:53,160
Speaker 2: I paid a lot of attention to Noel because it

604
00:30:53,240 --> 00:30:56,520
Speaker 2: was outlining what next. Yes, there's a lot of euphoria

605
00:30:56,600 --> 00:30:59,800
Speaker 2: around whether indeed the sec chare will change and be

606
00:30:59,840 --> 00:31:02,920
Speaker 2: more or crypto loving or a nice put in place

607
00:31:03,400 --> 00:31:07,840
Speaker 2: some sort of clarity as to what the future regulation

608
00:31:07,960 --> 00:31:10,560
Speaker 2: will be rather than enforcement. What is next on the

609
00:31:10,600 --> 00:31:13,760
Speaker 2: to do list? What will really substantiate these record highs?

610
00:31:14,440 --> 00:31:16,840
Speaker 13: That's exactly what we're all asking Caroline, Thanks so much

611
00:31:16,880 --> 00:31:19,680
Speaker 13: for having me. What is next very much depends on

612
00:31:19,840 --> 00:31:22,000
Speaker 13: the priorities of the new administration when it gets in.

613
00:31:22,040 --> 00:31:23,000
Speaker 3: I think we can assume that.

614
00:31:22,960 --> 00:31:24,880
Speaker 13: Crep's crypto is not going to be top of their list.

615
00:31:24,920 --> 00:31:27,240
Speaker 13: But he did make some very important promises, and it

616
00:31:27,280 --> 00:31:30,600
Speaker 13: is a very sore thorn in the side of US

617
00:31:30,600 --> 00:31:33,560
Speaker 13: financial infrastructure that this has not ment dealt with. There's

618
00:31:33,600 --> 00:31:35,760
Speaker 13: going to be some limits as to what they can

619
00:31:35,960 --> 00:31:38,960
Speaker 13: do in the short term, and perhaps crypto spirits are

620
00:31:39,160 --> 00:31:42,400
Speaker 13: getting ahead of themselves a bit, but at the very least,

621
00:31:42,440 --> 00:31:45,240
Speaker 13: a change of regime at the SEC would be very

622
00:31:45,240 --> 00:31:48,360
Speaker 13: good news to enable so builders to go in and

623
00:31:48,400 --> 00:31:51,239
Speaker 13: talk to the regulator without fear of an action. This

624
00:31:51,280 --> 00:31:54,120
Speaker 13: would especially be good for assets whose status a spirity

625
00:31:54,120 --> 00:31:56,520
Speaker 13: are lot is currently unclear, as well as those that

626
00:31:56,560 --> 00:32:00,000
Speaker 13: want to provide services for those assets.

627
00:31:59,800 --> 00:32:02,560
Speaker 4: Do you have a good sense of where President electromp

628
00:32:02,600 --> 00:32:05,520
Speaker 4: will start any specific area of focus?

629
00:32:06,560 --> 00:32:08,720
Speaker 13: I think the number one and the either low hanging

630
00:32:08,760 --> 00:32:10,840
Speaker 13: fruit has to be a change at the SEC. I

631
00:32:10,840 --> 00:32:12,680
Speaker 13: think that's pretty much on the cards that would have

632
00:32:12,720 --> 00:32:15,840
Speaker 13: happened to be fair, I think any ways, but the

633
00:32:15,920 --> 00:32:18,160
Speaker 13: type of change now obviously is going to be slightly

634
00:32:18,200 --> 00:32:20,840
Speaker 13: different than had the neglection gone the other way. That's

635
00:32:20,840 --> 00:32:23,280
Speaker 13: a fairly easy one, and again have to remember ever

636
00:32:23,320 --> 00:32:26,120
Speaker 13: since Chevron was overturned, the SEC does have its hands

637
00:32:26,120 --> 00:32:28,120
Speaker 13: tied as to the kind of rule making it can

638
00:32:28,160 --> 00:32:32,840
Speaker 13: engage in. But just removing the fear of action is

639
00:32:32,880 --> 00:32:34,160
Speaker 13: a very big deal.

640
00:32:35,160 --> 00:32:37,680
Speaker 2: Then you articulate in the note that maybe we look

641
00:32:37,680 --> 00:32:42,280
Speaker 2: at stable coin focus and indeed some sort of clarity

642
00:32:42,640 --> 00:32:45,480
Speaker 2: on it going forward. We're also though thinking about what

643
00:32:45,760 --> 00:32:48,480
Speaker 2: Congress looks like. There are a lot of people, a

644
00:32:48,480 --> 00:32:50,440
Speaker 2: lot of races that were backed by an awful lot

645
00:32:50,480 --> 00:32:53,680
Speaker 2: of money coming from the cryptoc community that wanted to

646
00:32:53,720 --> 00:32:58,160
Speaker 2: see well more change From a congressional perspective, Senator Cynthia Loomis.

647
00:32:58,360 --> 00:33:01,120
Speaker 2: She goes on to talk about the strategy bitcoin reserve

648
00:33:01,240 --> 00:33:04,040
Speaker 2: that many of us really wonder how powerful that will

649
00:33:04,080 --> 00:33:06,680
Speaker 2: really be. What do you make of that particular part

650
00:33:06,680 --> 00:33:08,240
Speaker 2: of the promise from Trump.

651
00:33:08,920 --> 00:33:11,200
Speaker 13: I'm hearing a lot of chatter about that, a little peo.

652
00:33:11,400 --> 00:33:14,440
Speaker 13: Everyone's asking when, not if, but when is this going

653
00:33:14,480 --> 00:33:17,000
Speaker 13: to happen. I to be honest, I'm skeptical we're going

654
00:33:17,040 --> 00:33:19,440
Speaker 13: to get one of those. And I also think that

655
00:33:19,880 --> 00:33:22,800
Speaker 13: Trump himself might walk back his promise on that when

656
00:33:22,840 --> 00:33:26,680
Speaker 13: he realizes that it involves selling dollars to buy bitcoin.

657
00:33:27,040 --> 00:33:29,120
Speaker 13: Even if he doesn't, it will be very hard to

658
00:33:29,160 --> 00:33:31,560
Speaker 13: get through Congress. But to be honest, that isn't the

659
00:33:31,600 --> 00:33:33,840
Speaker 13: most important thing. It would be just enough. It would

660
00:33:33,840 --> 00:33:36,400
Speaker 13: be good news for the market if the US decides

661
00:33:36,440 --> 00:33:39,400
Speaker 13: to not sell its current stash. And as for the

662
00:33:39,400 --> 00:33:41,880
Speaker 13: stable coins that you're asking about, that again is low

663
00:33:41,920 --> 00:33:44,880
Speaker 13: hanging fruit. A stable coin bill is bipartisan. This person

664
00:33:44,960 --> 00:33:47,160
Speaker 13: of ironing out the details, what kind of requirements and

665
00:33:47,200 --> 00:33:50,320
Speaker 13: reserves would they insist on. That's going to be pretty easy.

666
00:33:50,360 --> 00:33:51,840
Speaker 13: And I think we're going to get that pretty much

667
00:33:51,880 --> 00:33:54,200
Speaker 13: right out of the bat as well, depending on how

668
00:33:54,240 --> 00:33:56,600
Speaker 13: fast Congress moves the course. And we do as as

669
00:33:56,600 --> 00:33:59,080
Speaker 13: you said, Gary, and we do have the most crypto

670
00:33:59,120 --> 00:34:02,600
Speaker 13: friendly Congress ever. That is really quite astonishing. What is

671
00:34:02,640 --> 00:34:05,400
Speaker 13: really needed, though, is a crypto bill that will recognize

672
00:34:05,400 --> 00:34:08,279
Speaker 13: that the definitions have changed, that new types of rules

673
00:34:08,280 --> 00:34:08,680
Speaker 13: are needed.

674
00:34:08,800 --> 00:34:11,080
Speaker 8: That is going to be more complicated.

675
00:34:11,160 --> 00:34:12,919
Speaker 2: A Jason, We're going to be getting a back entory

676
00:34:12,920 --> 00:34:14,200
Speaker 2: for Crown Digital partner.

677
00:34:14,280 --> 00:34:17,080
Speaker 3: We thank you. Coming up, we're going to be speaking with.

678
00:34:17,040 --> 00:34:21,319
Speaker 2: Parma Lucky, androil founder and President Trump heads back to

679
00:34:21,400 --> 00:34:26,239
Speaker 2: the White House and questions linger around his defense tech starts.

680
00:34:26,600 --> 00:34:38,560
Speaker 2: We discuss President elect Trump. This is Bloomberg Technology.

681
00:34:44,920 --> 00:34:47,600
Speaker 4: As Donald Trump prepares to head back to the White House,

682
00:34:47,640 --> 00:34:51,400
Speaker 4: there are questions around his policies on AI, defense tech

683
00:34:51,440 --> 00:34:54,480
Speaker 4: and spending for More and roll founder Parma Lucky is

684
00:34:54,520 --> 00:34:58,080
Speaker 4: back with us here on Bloomberg Technology, and I want

685
00:34:58,080 --> 00:35:00,759
Speaker 4: to keep it focused on technology, but i'd also like

686
00:35:00,800 --> 00:35:03,440
Speaker 4: to invite you'd start just to give your reaction to

687
00:35:03,480 --> 00:35:06,359
Speaker 4: the outcome of the election, and I guess reflect your

688
00:35:06,400 --> 00:35:08,840
Speaker 4: sentiments about the next four years.

689
00:35:10,200 --> 00:35:13,319
Speaker 14: Well, I think it was obvious to most people who

690
00:35:13,320 --> 00:35:15,920
Speaker 14: have been paying attention to what people are paying attention to.

691
00:35:16,040 --> 00:35:18,120
Speaker 14: I know that that's contentious. A lot of people thought

692
00:35:18,160 --> 00:35:19,799
Speaker 14: it was going to be close. I didn't think it was.

693
00:35:19,920 --> 00:35:21,880
Speaker 14: Of course, I'm biased. I've been a Trump supporter for

694
00:35:21,920 --> 00:35:23,759
Speaker 14: a long time. I supported him in twenty sixteen, I

695
00:35:23,800 --> 00:35:25,759
Speaker 14: supported him in twenty twenty. I actually wrote a letter

696
00:35:25,760 --> 00:35:27,919
Speaker 14: to him while I was in college in twenty eleven

697
00:35:27,960 --> 00:35:30,360
Speaker 14: telling him that he should run for president. So I've

698
00:35:30,360 --> 00:35:31,640
Speaker 14: been a fan of the Master of the Art of

699
00:35:31,640 --> 00:35:33,239
Speaker 14: the Deal for a long time. It's nice to see

700
00:35:33,239 --> 00:35:34,880
Speaker 14: it finding Colman. And I'm also a big fan of

701
00:35:34,920 --> 00:35:37,120
Speaker 14: his pick in JD Vans for vice president.

702
00:35:37,160 --> 00:35:39,200
Speaker 5: He's done an incredible job. Everyone else has got to

703
00:35:39,200 --> 00:35:39,560
Speaker 5: see that.

704
00:35:40,040 --> 00:35:42,920
Speaker 14: But I've known JD for a while and he's an

705
00:35:42,920 --> 00:35:47,080
Speaker 14: incredible person. But my reaction on kind of the more

706
00:35:47,120 --> 00:35:49,520
Speaker 14: business side, the defense side, is it's great to have

707
00:35:49,640 --> 00:35:54,840
Speaker 14: someone inbound who is deeply, i guess, deeply aligned with

708
00:35:54,880 --> 00:35:56,680
Speaker 14: the idea that we need to be spending less on

709
00:35:56,719 --> 00:35:58,640
Speaker 14: defense while still getting more, that we need to do

710
00:35:58,680 --> 00:36:01,560
Speaker 14: a better job for k during the defense tools that

711
00:36:01,600 --> 00:36:04,720
Speaker 14: protect our country. Trump famously got involved in the nitty

712
00:36:04,760 --> 00:36:07,160
Speaker 14: gritty of some of our aircraft carrier design and some

713
00:36:07,280 --> 00:36:08,919
Speaker 14: of the procurement of air Force.

714
00:36:09,000 --> 00:36:12,040
Speaker 5: One. To see that level of involvement from a president.

715
00:36:11,680 --> 00:36:14,640
Speaker 14: Is pretty rare, and I think an indicator of his priorities.

716
00:36:15,280 --> 00:36:17,920
Speaker 3: You wrote a letter to the guy back in twenty eleven.

717
00:36:17,920 --> 00:36:20,400
Speaker 3: Who knows whether that inspired has run Parma.

718
00:36:20,520 --> 00:36:25,360
Speaker 2: But you're close, of course with the VP elect as well.

719
00:36:25,760 --> 00:36:28,680
Speaker 2: Are you talking about anyone to be the Defense secretary?

720
00:36:28,760 --> 00:36:31,280
Speaker 2: Have you got anyone's here? Would you like anyone in particular?

721
00:36:32,360 --> 00:36:34,839
Speaker 5: Look, I've got opinions. I'm in touch with the.

722
00:36:34,760 --> 00:36:36,279
Speaker 14: Transition of team, of course, and I know a lot

723
00:36:36,280 --> 00:36:38,560
Speaker 14: of people who are involved with the transition have known

724
00:36:38,600 --> 00:36:41,319
Speaker 14: them for a long time. In many cases, I've heard

725
00:36:41,360 --> 00:36:44,000
Speaker 14: a few names thrown around for a potential Secretary of Defense,

726
00:36:44,040 --> 00:36:48,239
Speaker 14: but also for the many roles that are in maybe

727
00:36:48,239 --> 00:36:50,560
Speaker 14: not the secretary level. They don't get quite as discussed

728
00:36:50,600 --> 00:36:55,000
Speaker 14: on shows like yours, but it's still very, very important.

729
00:36:55,680 --> 00:36:56,360
Speaker 5: So you know what, I.

730
00:36:56,320 --> 00:36:58,400
Speaker 14: Don't want to throw any names out there because I

731
00:36:58,400 --> 00:37:00,440
Speaker 14: would be happy with all There's not There's not a

732
00:37:00,480 --> 00:37:02,440
Speaker 14: single name that I've heard that I'm unhappy with. And

733
00:37:02,480 --> 00:37:07,239
Speaker 14: I have to I have to play nice and not say, oh, well,

734
00:37:07,239 --> 00:37:08,520
Speaker 14: I prefer this guy or that guy.

735
00:37:08,719 --> 00:37:10,799
Speaker 5: All of the names that I've seen are people who

736
00:37:10,840 --> 00:37:13,360
Speaker 5: are do an incredible job. Thank you, Palmer.

737
00:37:13,880 --> 00:37:18,680
Speaker 4: Anderil has spent years working with the Department of Defense, right,

738
00:37:18,760 --> 00:37:21,080
Speaker 4: and I don't want you to reflect too much on

739
00:37:21,120 --> 00:37:23,560
Speaker 4: the experience that has been, but maybe you could talk

740
00:37:23,600 --> 00:37:26,759
Speaker 4: because through the changes you think are needed in that

741
00:37:26,800 --> 00:37:31,080
Speaker 4: department structurally in terms of how government does business with

742
00:37:31,200 --> 00:37:32,160
Speaker 4: private enterprise.

743
00:37:32,320 --> 00:37:32,880
Speaker 5: Like Anderill.

744
00:37:33,719 --> 00:37:37,160
Speaker 14: Sure, Look, I got into the defense space after I

745
00:37:37,200 --> 00:37:39,319
Speaker 14: sold my first company, Oculus, to Facebook for a few

746
00:37:39,360 --> 00:37:40,040
Speaker 14: billion dollars.

747
00:37:40,400 --> 00:37:42,239
Speaker 5: Was working on VR there for a few years before

748
00:37:42,280 --> 00:37:42,920
Speaker 5: I got fired.

749
00:37:43,160 --> 00:37:45,160
Speaker 14: And the reason I got into national security is because

750
00:37:45,160 --> 00:37:47,600
Speaker 14: I wanted to save taxpayers hundreds of billions of dollars

751
00:37:47,600 --> 00:37:49,640
Speaker 14: a year by making tens of billions of dollars a year.

752
00:37:49,640 --> 00:37:50,719
Speaker 5: And I think that that can be.

753
00:37:50,640 --> 00:37:54,080
Speaker 14: Done by encouraging the creation of defense product companies that

754
00:37:54,160 --> 00:37:56,399
Speaker 14: use their own money to decide what to build, how

755
00:37:56,400 --> 00:37:59,399
Speaker 14: to build it when it's done, and then have skin

756
00:37:59,480 --> 00:38:01,719
Speaker 14: in the game. And they fail, they lose money. When

757
00:38:01,719 --> 00:38:04,279
Speaker 14: they succeed, they make money. I think the set of

758
00:38:04,280 --> 00:38:07,200
Speaker 14: incentives that you see in a lot of defense contracting today.

759
00:38:07,200 --> 00:38:10,680
Speaker 14: Defense procurement today cost plus contracting, where you're paid for

760
00:38:10,719 --> 00:38:12,640
Speaker 14: your fixed time and materials and a fixed percentage of

761
00:38:12,640 --> 00:38:15,560
Speaker 14: profit on top. It rewards exactly the wrong things. You

762
00:38:15,600 --> 00:38:19,680
Speaker 14: make more money by making things more expensive. You make

763
00:38:19,760 --> 00:38:22,800
Speaker 14: more plus by having more cost and that manifests in

764
00:38:22,840 --> 00:38:25,640
Speaker 14: the form of programs that go too long, programs that

765
00:38:25,680 --> 00:38:28,839
Speaker 14: are too expensive, components that are more expensive than need be,

766
00:38:28,840 --> 00:38:31,160
Speaker 14: because it's really the only way to make more money

767
00:38:31,200 --> 00:38:32,920
Speaker 14: on it. In fact, in some cases, they make more

768
00:38:32,960 --> 00:38:34,560
Speaker 14: money with things that break frequently than not.

769
00:38:34,640 --> 00:38:37,440
Speaker 5: And so I think what we really need.

770
00:38:37,360 --> 00:38:39,799
Speaker 14: Is companies that are aligned with the way that we

771
00:38:39,840 --> 00:38:41,280
Speaker 14: do business and the rest of our economy.

772
00:38:41,280 --> 00:38:43,560
Speaker 5: You build a good product, you sell it, you make money.

773
00:38:44,280 --> 00:38:46,600
Speaker 2: So in terms of contracting, if we see a shakeup,

774
00:38:46,840 --> 00:38:49,479
Speaker 2: will you benefit the smaller? The startups benefit a little

775
00:38:49,480 --> 00:38:50,919
Speaker 2: bit more than they have been Who the winners?

776
00:38:50,960 --> 00:38:51,919
Speaker 3: Who are the losers? Do you think?

777
00:38:53,280 --> 00:38:53,440
Speaker 5: Well?

778
00:38:53,440 --> 00:38:57,080
Speaker 14: I think the winners are going to be particularly to

779
00:38:57,080 --> 00:38:58,480
Speaker 14: two things. I think it's going to be a lot

780
00:38:58,480 --> 00:39:01,080
Speaker 14: of these new startups that are up in the wake

781
00:39:01,120 --> 00:39:04,840
Speaker 14: of Androl's success. I often say that other defense startups

782
00:39:04,840 --> 00:39:07,160
Speaker 14: have raised a lot more money off my success than

783
00:39:07,200 --> 00:39:09,760
Speaker 14: I have, which I'm fine with. And I've raised billions,

784
00:39:09,840 --> 00:39:12,280
Speaker 14: but I've seen their pitch decks. They're saying, hey, Androl

785
00:39:12,320 --> 00:39:15,200
Speaker 14: did it. The DoD is moving with this. People understand

786
00:39:15,200 --> 00:39:17,280
Speaker 14: that this is a viable business model. I think another

787
00:39:17,320 --> 00:39:19,000
Speaker 14: beneficiary is going to be companies that have been around

788
00:39:19,000 --> 00:39:21,040
Speaker 14: for a long time that are very very competent, that

789
00:39:21,120 --> 00:39:22,680
Speaker 14: know how to get things done, that know how to

790
00:39:22,920 --> 00:39:24,600
Speaker 14: write a budget, that know how to build a team,

791
00:39:24,640 --> 00:39:26,520
Speaker 14: that know how to build a product. The companies that

792
00:39:26,560 --> 00:39:28,680
Speaker 14: suffer are going to be the ones that try to

793
00:39:28,800 --> 00:39:32,359
Speaker 14: shunt responsibility for their failures over and over and over

794
00:39:32,400 --> 00:39:34,600
Speaker 14: again onto the taxpayer. I think they're the ones who

795
00:39:34,640 --> 00:39:36,080
Speaker 14: are going to struggle. And I don't want to make

796
00:39:36,080 --> 00:39:37,759
Speaker 14: this sound like this is a this is just a

797
00:39:37,760 --> 00:39:40,279
Speaker 14: Trump thing. This is a non partisan idea. I mean,

798
00:39:40,360 --> 00:39:42,640
Speaker 14: Androl's been around for about eight years now. We did

799
00:39:42,640 --> 00:39:45,399
Speaker 14: well under Trump in his first administration, and we did

800
00:39:45,520 --> 00:39:48,319
Speaker 14: even better under Biden and his administration. I think we're

801
00:39:48,360 --> 00:39:51,440
Speaker 14: going to do even better now. It's the defense space

802
00:39:51,560 --> 00:39:53,000
Speaker 14: is one of the few that is I think actually

803
00:39:53,120 --> 00:39:57,520
Speaker 14: successfully remained pretty non partisan, and that's aligned with Androl too.

804
00:39:57,560 --> 00:39:59,960
Speaker 14: You know, I'm a Republican obviously, I'm the founder of ANDROL,

805
00:40:00,120 --> 00:40:03,480
Speaker 14: but our CEO Brianship as a Democrat, He's fundraised for Jamala,

806
00:40:03,600 --> 00:40:06,560
Speaker 14: He's done fundraisers for other Democrat politicians. The idea that

807
00:40:06,560 --> 00:40:09,080
Speaker 14: the United States military should have the strongest military in

808
00:40:09,120 --> 00:40:11,640
Speaker 14: the world, and that we should defend our allies around

809
00:40:11,680 --> 00:40:14,239
Speaker 14: the world, not just with our military, but especially giving

810
00:40:14,280 --> 00:40:16,320
Speaker 14: them the tools that they need to defend themselves.

811
00:40:16,160 --> 00:40:18,719
Speaker 5: It's a pretty non partisan idea.

812
00:40:19,440 --> 00:40:23,480
Speaker 4: Palmer has the election of Donald Trump caused Anderill to

813
00:40:23,560 --> 00:40:28,400
Speaker 4: adjust or change planning for China and allies like taiwan.

814
00:40:29,960 --> 00:40:30,960
Speaker 5: Ah.

815
00:40:31,440 --> 00:40:34,840
Speaker 14: I don't think so, mostly because I was certain he

816
00:40:34,920 --> 00:40:35,600
Speaker 14: was going to win.

817
00:40:35,719 --> 00:40:39,160
Speaker 5: I think it was already big di in Okay.

818
00:40:39,280 --> 00:40:42,880
Speaker 4: And one thing I'm fascinated by, and just bear with

819
00:40:42,920 --> 00:40:48,040
Speaker 4: me on this one elon Musk Okay. There's an association

820
00:40:48,239 --> 00:40:51,520
Speaker 4: between the two. The great unknown is whether Musk will

821
00:40:51,520 --> 00:40:56,360
Speaker 4: hold a formal or informal role in some government department.

822
00:40:57,080 --> 00:41:00,560
Speaker 4: But I guess what's your assumption and planning, how much

823
00:41:00,600 --> 00:41:05,719
Speaker 4: attention he can keep Trump focused on defense space and

824
00:41:05,760 --> 00:41:07,520
Speaker 4: what you kind of think it will actually lead to.

825
00:41:07,719 --> 00:41:08,480
Speaker 5: Do you see what I mean?

826
00:41:10,440 --> 00:41:16,399
Speaker 14: I think that Elon has outperformed every reasonable expectation of him.

827
00:41:16,440 --> 00:41:18,200
Speaker 14: I was one of the people, I have to admit

828
00:41:18,640 --> 00:41:23,240
Speaker 14: that didn't believe that he could successfully work on Twitter

829
00:41:23,719 --> 00:41:28,799
Speaker 14: and SpaceX and Tesla and Solar City and Neurolink and

830
00:41:28,920 --> 00:41:33,680
Speaker 14: politics and everything else and Diablo for Top twenty ranked

831
00:41:33,719 --> 00:41:34,520
Speaker 14: all at the same time.

832
00:41:35,200 --> 00:41:38,360
Speaker 5: But he's done it. And so on the one.

833
00:41:38,200 --> 00:41:39,839
Speaker 14: Hand, it's easy to say, oh, man, I think it's

834
00:41:39,880 --> 00:41:41,759
Speaker 14: going to be really hard for him to do all

835
00:41:41,800 --> 00:41:45,120
Speaker 14: of that and also keep this administration maybe focused on

836
00:41:45,160 --> 00:41:49,040
Speaker 14: things like space making, humanity and multiplanetary species and extra

837
00:41:49,080 --> 00:41:52,759
Speaker 14: solar species eventually. But you know what, everyone who's ever

838
00:41:52,800 --> 00:41:56,799
Speaker 14: bet against Elon has come away crying. So I think

839
00:41:56,800 --> 00:41:58,719
Speaker 14: I'm probably just gonna have to say, yeah, I bet

840
00:41:58,760 --> 00:42:01,160
Speaker 14: he's going to do it somehow, somehow, he's going.

841
00:42:01,000 --> 00:42:01,399
Speaker 5: To do it.

842
00:42:02,160 --> 00:42:05,719
Speaker 2: Andrew Founder Palmer Lucky. We appreciate it. Thank you for

843
00:42:05,760 --> 00:42:15,959
Speaker 2: coming on a sketter Today's Tech Daily. Elon Musk's big

844
00:42:16,000 --> 00:42:18,600
Speaker 2: bet on Donald Trump has paid off if you're looking

845
00:42:18,600 --> 00:42:21,920
Speaker 2: at the count market capitalization of Tesla absolutely rocketing. But

846
00:42:21,920 --> 00:42:24,000
Speaker 2: what does it mean for the value of other areas

847
00:42:24,040 --> 00:42:27,120
Speaker 2: of his control X for example, the platform formerly known

848
00:42:27,120 --> 00:42:30,239
Speaker 2: as Twitter those Max Trafkan discusses what has been a

849
00:42:30,280 --> 00:42:32,600
Speaker 2: massive payoff if you think of one hundred and thirty

850
00:42:32,640 --> 00:42:35,680
Speaker 2: million in and how much as wealth has ballooned by that.

851
00:42:36,080 --> 00:42:37,960
Speaker 3: But what about the other areas of growth.

852
00:42:38,440 --> 00:42:41,120
Speaker 15: Well, I think X we need to stop thinking about

853
00:42:41,200 --> 00:42:44,880
Speaker 15: as a business that exists outside of Elon Musk's you know,

854
00:42:45,200 --> 00:42:47,799
Speaker 15: general empire. You know, X's value has fallen a lot

855
00:42:47,840 --> 00:42:50,480
Speaker 15: over the past two years, but I think at this

856
00:42:50,520 --> 00:42:54,520
Speaker 15: point it's fair to say that it's influence, it's political worth.

857
00:42:55,440 --> 00:42:59,360
Speaker 15: What it gives Elon Musk's other areas is probably worth

858
00:42:59,440 --> 00:43:02,200
Speaker 15: more than the forty four billion dollars he paid for it,

859
00:43:02,480 --> 00:43:05,000
Speaker 15: or at least the money that he's lost in running

860
00:43:05,000 --> 00:43:07,879
Speaker 15: it over the past two years. SpaceX stands to gain

861
00:43:07,960 --> 00:43:12,520
Speaker 15: tremendously from this election. You know, Trump on the stump

862
00:43:12,640 --> 00:43:16,279
Speaker 15: was talking about Mars programs, talking about ordering rockets up

863
00:43:16,320 --> 00:43:18,640
Speaker 15: from Elon, and if that happens, if there is a

864
00:43:19,320 --> 00:43:21,799
Speaker 15: big Mars program that is unveiled, that's going to be

865
00:43:21,800 --> 00:43:24,360
Speaker 15: worth billions, if not tens of billions of dollars to

866
00:43:24,440 --> 00:43:28,560
Speaker 15: Elon Musk neuralink, his you know, brain implant thing that's

867
00:43:28,600 --> 00:43:33,440
Speaker 15: federally regulated, the boring company federally regulated, AI potentially.

868
00:43:33,040 --> 00:43:38,439
Speaker 4: Regulated, federally regulated is like the key point, right.

869
00:43:38,680 --> 00:43:39,359
Speaker 5: You know, in.

870
00:43:39,400 --> 00:43:42,960
Speaker 4: History, high profile people from the private sites of Going's

871
00:43:42,960 --> 00:43:47,200
Speaker 4: government is not new like Gary Cohne Minuchin. Whatever the

872
00:43:47,320 --> 00:43:49,719
Speaker 4: question is, will Musk see it through Max? Will he

873
00:43:49,840 --> 00:43:53,440
Speaker 4: still be with Trump in some role a year from now,

874
00:43:53,600 --> 00:43:54,879
Speaker 4: two or three years from now.

875
00:43:55,280 --> 00:43:57,440
Speaker 15: Well, I think, and I think the comparison with folks

876
00:43:57,440 --> 00:44:00,440
Speaker 15: like Gary Cohn is instructive. You know, there are lots

877
00:44:00,480 --> 00:44:04,359
Speaker 15: of business people who during the last Trump presidency kind

878
00:44:04,400 --> 00:44:08,400
Speaker 15: of navigated themselves towards Trump and ultimately I think had

879
00:44:08,520 --> 00:44:10,359
Speaker 15: a not great experience. You know, this is a guy

880
00:44:10,400 --> 00:44:11,960
Speaker 15: who takes up a lot of space in the room.

881
00:44:12,280 --> 00:44:16,480
Speaker 15: He is, you know, famously strong headed, and you look

882
00:44:16,480 --> 00:44:19,680
Speaker 15: at Elon Musk's personality and Donald Trump's personality, might say,

883
00:44:19,800 --> 00:44:22,439
Speaker 15: how can these two men be in a room together? Now,

884
00:44:22,640 --> 00:44:24,919
Speaker 15: the point I would put, what I would point out

885
00:44:25,080 --> 00:44:28,600
Speaker 15: is that Elon Musk is way richer than any of

886
00:44:28,600 --> 00:44:31,680
Speaker 15: those guys you mentioned, and way more powerful and has

887
00:44:31,719 --> 00:44:35,680
Speaker 15: a real personal brand celebrity. He is as famous as

888
00:44:35,680 --> 00:44:37,480
Speaker 15: some of the most famous people in the world. So

889
00:44:37,640 --> 00:44:40,799
Speaker 15: he has leverage over Trump that maybe some of these

890
00:44:40,880 --> 00:44:45,040
Speaker 15: other business people did not have Elon Musk. Now I

891
00:44:45,040 --> 00:44:47,920
Speaker 15: think very much needs Donald Trump. But I would argue

892
00:44:47,920 --> 00:44:51,080
Speaker 15: that Donald Trump and the Republican Party now needs Elon

893
00:44:51,200 --> 00:44:51,719
Speaker 15: Musk too.

894
00:44:52,080 --> 00:44:55,640
Speaker 2: There are other positions of power within the US government.

895
00:44:55,640 --> 00:44:57,120
Speaker 3: The White House is not all of it. Will that

896
00:44:57,200 --> 00:44:58,200
Speaker 3: be checks and balances?

897
00:44:59,040 --> 00:45:00,880
Speaker 15: I mean, I think you have to look at the

898
00:45:00,960 --> 00:45:04,120
Speaker 15: past Trump presidency and also, just like the character of

899
00:45:04,160 --> 00:45:07,080
Speaker 15: Elon Musk and Donald Trump, these are not guys who

900
00:45:07,160 --> 00:45:10,240
Speaker 15: like following the who necessarily are paying super close attention

901
00:45:10,560 --> 00:45:13,600
Speaker 15: to the rules, and so I think that you know, yeah,

902
00:45:13,600 --> 00:45:15,680
Speaker 15: we're going to see a lot of conversation about potential

903
00:45:15,719 --> 00:45:19,920
Speaker 15: ethics violations. Should a guy who owns a major defense contractor,

904
00:45:19,920 --> 00:45:22,759
Speaker 15: who controls a major defense contractor be giving the US

905
00:45:22,840 --> 00:45:26,799
Speaker 15: government advice on defense personnel, that's probably going to run

906
00:45:26,800 --> 00:45:29,319
Speaker 15: a foul of ethics rules. Now, do I expect that

907
00:45:29,360 --> 00:45:30,719
Speaker 15: to slow down Elon Musk?

908
00:45:30,840 --> 00:45:33,560
Speaker 4: No, I mean, to be fair, Pa Ma Lucky was

909
00:45:33,600 --> 00:45:35,600
Speaker 4: just in the show, and he's a major defense contractor,

910
00:45:35,640 --> 00:45:38,640
Speaker 4: and he was giving loads of advice to the future administration.

911
00:45:38,840 --> 00:45:42,520
Speaker 15: So okay, But there's a difference between giving advice and

912
00:45:42,960 --> 00:45:44,120
Speaker 15: being part of the White House.

913
00:45:44,280 --> 00:45:45,439
Speaker 5: Right, that's I know there.

914
00:45:45,400 --> 00:45:49,560
Speaker 4: Is and it's the only question formal role or informal role.

915
00:45:49,600 --> 00:45:51,320
Speaker 4: And I promise you I'll try and find out Blooma's

916
00:45:51,320 --> 00:45:53,160
Speaker 4: match chaffikin. Thank you very much, Carol.

917
00:45:53,440 --> 00:45:55,520
Speaker 2: That does it for this edition of Blue Big Technology.

918
00:45:55,560 --> 00:45:58,200
Speaker 2: Boy do we get through a lot, whether it's earnings

919
00:45:58,200 --> 00:46:00,319
Speaker 2: that are still on a fed that's to come, but

920
00:46:00,440 --> 00:46:01,960
Speaker 2: also about the election.

921
00:46:04,000 --> 00:46:05,480
Speaker 4: Check out the pod you know where to find it.

922
00:46:05,640 --> 00:46:06,840
Speaker 4: Team in New York and accept.

923
00:46:06,840 --> 00:46:08,280
Speaker 5: Thank you. This is Bloomberg