Speaker 1: From Mahard where Innovation of Money and Power Collie in
Speaker 1: Silicon Valley NBN. This is Bloomberg Technology with Caroline Hyde
Speaker 1: and Ed Ludlow.
Speaker 2: Now from New York and San Francisco. This is Bloomberg
Speaker 2: Technology coming up. Tech stocks lead the markets to new highs.
Speaker 3: We discussed the drivers from the elections to earnings and
Speaker 3: the FED, and.
Speaker 4: We talked chip demand as ARM and Qualcom give mixed
Speaker 4: signals about the smartphone market.
Speaker 5: We speak to ARMS CEO Rene Has and.
Speaker 2: The c suite take on the election. We speak with
Speaker 2: Andreil's at Palmer Lucky. I'm going to focus on defense tech,
Speaker 2: but first let's just get back to these publicly traded
Speaker 2: markets that are at new record highs. I shine a
Speaker 2: light on the Nastak one hundred. It finally reaches that
Speaker 2: new record yesterday, eclipsing the number it got to back
Speaker 2: in July.
Speaker 3: We're at one point three percent.
Speaker 2: The likely magnificent sevens drive this benchmark to yet further
Speaker 2: heights ahead of the FED.
Speaker 3: What are you watching?
Speaker 5: End earnings?
Speaker 4: But November fifth an astonishing day to report numbers. Right,
Speaker 4: Lift is up twenty seven percent off session highs where
Speaker 4: it was up thirty percent strong outlook, they're kind of
Speaker 4: finding their niche and growth despite big brother Uber also
Speaker 4: doing well. Then there's the chip names qual Common, ARM.
Speaker 4: They've traded very choppy in the session. Qual Comm was
Speaker 4: up a lot, now it's up eight tens percent. Arm
Speaker 4: was down, it's now up five and a half percent.
Speaker 4: Basically consumers in key markets like China buying higher price
Speaker 4: handsets and both benefiting from that.
Speaker 5: But we can get into it later in the program
Speaker 5: we can.
Speaker 2: And of course China are a key focus for the
Speaker 2: macro perspective going forward. After the results of the election
Speaker 2: came through. Let's get an overview of these markets of roombgs,
Speaker 2: Jess meant and just we see big tech leading all
Speaker 2: the benchmarks to new highs as well as small caps.
Speaker 3: But what keeps your eye, Well.
Speaker 6: The big thing is because you'll just touched on when
Speaker 6: it comes to Earth. So the biggest player, obviously we'll
Speaker 6: have Invidia coming up on November twentieth, but when you
Speaker 6: look more specifically at when it comes to some of
Speaker 6: its biggest customers, we've already had those earnings when it
Speaker 6: comes to Meta, Microsoft, alphabet as Wolls, Amazon, So when
Speaker 6: it comes to as far as what in totality when
Speaker 6: it comes to what they're plowing into data center binesses
Speaker 6: as well as other fixed assets. I mean, it's around
Speaker 6: fifty nine billion with those forward companies just in the
Speaker 6: third quarter alone, So usually that you can kind of
Speaker 6: glean into what that means for in video moving forward.
Speaker 3: But obviously on the.
Speaker 6: Back of these election results, there's a lot of questions
Speaker 6: as far as what this could potentially mean for Biden's
Speaker 6: chip back, especially when you think about companies that derive
Speaker 6: different manufacturing from overseas like Apple as wolves when it
Speaker 6: comes to say China and Biden trying to prohibit them
Speaker 6: trying to use Western technology and trying to curb that.
Speaker 4: Right now, Caroline, the headline of the band story today
Speaker 4: is in video is clear winner in a lackluster big
Speaker 4: tech earning season.
Speaker 5: Is anyone watching the show? It's been great, Caroline, I've
Speaker 5: had a lot of fun.
Speaker 4: The main point is that whatever happens in this next
Speaker 4: administration jests, it doesn't kick in for a while. Is
Speaker 4: there like a theme of the now of the next
Speaker 4: three months, final three months of the year that markets
Speaker 4: are looking to well.
Speaker 6: Usually the playbook in an election year is typically once
Speaker 6: you have the election results.
Speaker 3: There tends to be a year.
Speaker 6: End rally, but we had quite a bit of a
Speaker 6: real not even just when you're thinking about what's happened
Speaker 6: tech and growth stocks, but the first three quarters of
Speaker 6: this year was the best start to a year for
Speaker 6: the S and P five hundred since nineteen ninety seven,
Speaker 6: but the Magnetum seven didn't really.
Speaker 3: Contribute to that in the third quarter.
Speaker 6: Obviously we've seen a bounce back from that, but even
Speaker 6: when we heard from Microsoft and Meta's results in recent
Speaker 6: weeks on the back of that, we didn't.
Speaker 3: Really see those stocks pop.
Speaker 6: But obviously sort of an all tied kind of lifting
Speaker 6: bulks here over the last couple of days following those
Speaker 6: election results. But moving forward, it's whether or not we
Speaker 6: see that playbook and especially the positioning play out in
Speaker 6: the final months of the year like we normally would
Speaker 6: through history.
Speaker 4: Boo bos Jess meant and helping us make sense of
Speaker 4: tech in markets, Thank you very much. So what does
Speaker 4: Trump two point zero presidency look like for the tech sector?
Speaker 4: Dan ives have web shrites. We expect a strong AI
Speaker 4: focus out of the gates from Trump for US big
Speaker 4: tech players can't out of the FTC and Musk's big
Speaker 4: bet on Trump being a home run for Tesla.
Speaker 5: Danaves joins us.
Speaker 4: Now, Dan, regular viewers of this show and network will
Speaker 4: know that much of what I just read out is
Speaker 4: not a surprise this that you have this thesis.
Speaker 5: But let's start on the AI part.
Speaker 4: What gives you such conviction that Trump will focus on
Speaker 4: AI out of the game.
Speaker 7: I mean, I think that that's going to be a
Speaker 7: huge focus within the government. I mean, government's been way
Speaker 7: behind when it comes to AI. That's going to be
Speaker 7: huge initiatives. I think through D O D, through the agency.
Speaker 7: Is that's gonna be borged for Microsoft, borge for Amazon,
Speaker 7: borge for good good Google.
Speaker 5: Names like par and Teer.
Speaker 7: I think that's other names that are going to benefit
Speaker 7: here in what is a gordon aede for AI and Palenteer.
Speaker 4: There's the link with government. I want to ask you
Speaker 4: about Elon Musk, and if you'll allow me, let me
Speaker 4: just put it this way. Because the market tried to
Speaker 4: make sense of the Tesla move, It's believed that Trump
Speaker 4: will repeal some or all of what's legislated for on
Speaker 4: the EV consumer incentive side, manufacturing support for the companies themselves,
Speaker 4: there's the association tailwind between Musk and Trump. Why is
Speaker 4: it that Tesla survives and stands out to your mind,
Speaker 4: but gm Ford rivian names like that won't do as well.
Speaker 7: Sure, I think it's a great point where it's good
Speaker 7: two parts. One by removing the credits seventy five hundred,
Speaker 7: that's going to give much more even playing field. I
Speaker 7: mean task as a scale and scope, They're going to
Speaker 7: be hugely advantaged there versus the Detroit Star Wars. So
Speaker 7: that's bullege there in terms of giving them that availability.
Speaker 7: And I think option you know, to the automate, they
Speaker 7: can still cut prices more. But the big thing, the
Speaker 7: reason that this stock, I believe it's a trillion dollars
Speaker 7: of value unlocked when it comes to the AIPS because
Speaker 7: when you look at Trump, this is going to give
Speaker 7: the highway the autobond for autonomous I think he is
Speaker 7: going to fast track autonomous FSD. That is very bullish
Speaker 7: for Tesla. And it comes down to from Musk one
Speaker 7: of the best strategic bets he ever made was ultimately
Speaker 7: this bet on Trump.
Speaker 3: It's the technology ready.
Speaker 5: I think the.
Speaker 7: Technology is not maybe not necessarily ready today in its
Speaker 7: current form, but it's going to a point that this
Speaker 7: is ultimately going to be. When I look at autonomous
Speaker 7: and FSD, it's a trillion dollar incremental valuation. You could
Speaker 7: cyber cabs, you could ultimately see twenty twenty six, twenty
Speaker 7: seven initiatives, get fast tracked.
Speaker 5: Tesla.
Speaker 7: Musk is the big winner in this called Trump sweepstakes,
Speaker 7: along with big tech because the other view is that
Speaker 7: Khan is likely going to be out the FTC and
Speaker 7: that's bullish for deal making across big tech.
Speaker 2: Okay, there's a lot to be butish about, but one
Speaker 2: area of concern has been well, yes, AI will be fueled,
Speaker 2: but what about the infrastructure for AI? A lot of
Speaker 2: that comes with growing chip sector here in the United States,
Speaker 2: and that's dependent on well, in many ways, the Chips Act.
Speaker 3: Maybe that gets blown out in the water.
Speaker 7: Yes, I think when it comes to Chips or Inflationial
Speaker 7: Reduction Act, clearly there's gonna be a lot of revisions there.
Speaker 7: I think probably the biggest loser negative would be names
Speaker 7: like Intel. You're just adding to that pain. But from
Speaker 7: a chip perspective.
Speaker 3: You think Intel will be a loser that well, for.
Speaker 7: I think Intel has been a loser. This is just
Speaker 7: putting really adding gasoline to the fire in terms of
Speaker 7: IRA was really going to be a huge opportunity for Intel.
Speaker 7: I think Intel now is on the wrong side that trend.
Speaker 7: I think what you're going to see with IRA and
Speaker 7: inflacial Reduction act much more focus on chips in the US,
Speaker 7: but really much more focus on the AI build out.
Speaker 7: And I think when it comes to some of the
Speaker 7: tariffs that we talked about with China, I think there
Speaker 7: will be carve outs.
Speaker 1: That's why I don't.
Speaker 7: Think that Nvidia is going to be so negatively impacted.
Speaker 7: I don't think a lot of these other names in
Speaker 7: terms of the tafts, I think Tesla Apple. That's also
Speaker 7: why it's so important that Musk is going to be
Speaker 7: a whisper in the White House.
Speaker 2: I'm going to let you put your ifvback on because
Speaker 2: I know Ed wants to jump in here, but I'm
Speaker 2: interested in basically, you think Trump isn't going to live
Speaker 2: up to a lot of the things he promised on
Speaker 2: the campaign.
Speaker 7: I think bar's going to be a lot worse than
Speaker 7: the bite. When it comes to some of the tariffs,
Speaker 7: you have some that'll be much more nastier. But when
Speaker 7: it comes to some of the exports that we see.
Speaker 7: I think it's you're gonna see carve outs here. I
Speaker 7: don't think it's gonna be as negative for tech and
Speaker 7: supply chain. That's why right now this is a Goldielox
Speaker 7: scenario for tech, but it's a champagne moment for Tesla investors.
Speaker 5: Dan, you can hear me? Well, can hearn?
Speaker 4: You?
Speaker 5: Give you a second? O? Good?
Speaker 4: All right, here's the question, be honest with me. Can
Speaker 4: Elon Musk have an.
Speaker 5: Informal all formal.
Speaker 4: Role in the administration and be the CEO of Tesla,
Speaker 4: SpaceX associated with Neuralink boring company, et cetera.
Speaker 7: Yes, I think he won't clearly have a formal role
Speaker 7: from a cabinet perspective. Why not kidding, because then it
Speaker 7: complicates in terms of his ownership and I think some
Speaker 7: of the structure in terms of what we see with
Speaker 7: Tesso with space X. But I believe he'll be an
Speaker 7: unofficial whisper. I think he'll have a significant influence within
Speaker 7: the White House.
Speaker 5: And that's why this is going to be.
Speaker 7: Known as probably the best strategic bet that Musk ever
Speaker 7: made in terms of betting on Trump. And I think
Speaker 7: you know this is something that is just starting to
Speaker 7: play out in terms of this Trump Musk sort of alliance.
Speaker 3: That i'ves and Webbush. I appreciate you coming on today.
Speaker 2: Meanwhile, coming up, we speak with m CEO Rene has
Speaker 2: hosts the chip designers earnings.
Speaker 3: That's next.
Speaker 8: This is bely Me Technology.
Speaker 2: Let's just dive into the markets a little bit more
Speaker 2: and check out chipmakers in particular.
Speaker 3: I'll bring you the socks. Of course. The Semiconductor index currently.
Speaker 2: Out one point six percent, having a lovely couple of days,
Speaker 2: were up more than almost four point seventy five, call
Speaker 2: it five percent over the last couple of training days.
Speaker 2: Most in the green qualcom just holding on to its gains.
Speaker 2: It has come down from what had been in excess
Speaker 2: of four five percent higher earlier. We're up seven tens
Speaker 2: of percent. They're giving a bullish sales forecast, expecting revenue
Speaker 2: of ten and a half to eleven point three billion
Speaker 2: dollars in the current quarter. They beat analyst expectations and
Speaker 2: their profit came in better than expected as well. Moving
Speaker 2: on to ARM, which has come from what was in
Speaker 2: the red pre market training to a higher three and
Speaker 2: a half percent. Now this is they too really managed
Speaker 2: to beat out the gate when it comes to the
Speaker 2: both the top and bottom line. The company's revenue forecast
Speaker 2: was a bit of a concern nine hundred and twenty
Speaker 2: million to nine hundred and seventy million, which perhaps just fell.
Speaker 3: Short of some expectations.
Speaker 2: But they really are maintaining their annual forecasts of three
Speaker 2: point eight to four point one billion dollars in sales.
Speaker 2: So let's get into it all a little bit more.
Speaker 4: At Yeah, I think the shares are so interesting for
Speaker 4: maybe it's a company reporting November fifth, and it took
Speaker 4: time for the market to wake up and read the
Speaker 4: numbers a little bit.
Speaker 5: Who knows. The chip maker did give what was seen.
Speaker 4: As a sluggish sales outlook and at first disappointed investors.
Speaker 4: What has changed, Rene Huss is the CEO of ARM
Speaker 4: and joins us. Now it's really interesting, right and the
Speaker 4: function of what ARM does on licensing royalties, because sometimes
Speaker 4: it's not about unit growth.
Speaker 5: I look at like revenue.
Speaker 4: For example, maybe some evidence renee that the Chinese consumer
Speaker 4: in particular is buying higher end handsets.
Speaker 5: How does that help you benefit?
Speaker 9: Well, good morning Eda and Caroline, and we are very
Speaker 9: happy about the quarter. We just reported the high end
Speaker 9: of the guidance, and our royalties were at a record number.
Speaker 9: And to your question, you know, one of the things
Speaker 9: that we have seen a huge benefit from with our
Speaker 9: technology going forward has been our Version nine, which commands
Speaker 9: a much higher royalty rate than we have in the past.
Speaker 9: And what that allows to do is not exactly track
Speaker 9: the market from a unit standpoint. One of the proof
Speaker 9: points of that unit sales for smartphones we're up four
Speaker 9: percent in the last quarter. Our royalties we're up forty percent.
Speaker 9: So you can get a sense that you're seeing a
Speaker 9: very big difference that's really driven by two factors. One
Speaker 9: is Version nine, as I said, which commands a high
Speaker 9: royalty rate. And second, we're just seeing more arm technology
Speaker 9: inside these smartphones, particularly the premium segment, which also commands
Speaker 9: a high royalty rene.
Speaker 4: A lot of investors and people that I speak to
Speaker 4: in the world of technology think you're great. You're a
Speaker 4: great CEO, and you've been embarked on this sort of
Speaker 4: journey for profit and margin. But is there a ceiling
Speaker 4: to that, Like, at some point, how do you keep
Speaker 4: driving those letters? Are you sort of very pricing dependent
Speaker 4: at this point?
Speaker 5: I don't think so.
Speaker 9: You know, the market that we're addressing is very, very large,
Speaker 9: and one of the things that has made it even
Speaker 9: larger has been all things AI. And if you think
Speaker 9: about what ARM does, we do compute, we do the CPU.
Speaker 9: Every digital device has one. And the fact that you're
Speaker 9: running all these AI workloads on devices that are already
Speaker 9: running different applications that they had to in the past,
Speaker 9: that drives a need for more and more compute capacity,
Speaker 9: which ends up ending up with ARM. So as a result,
Speaker 9: we were very, very fortunate to have some tailwinds from
Speaker 9: a technology standpoint driving our growth. So as far as
Speaker 9: the ceiling, I don't think about it quite that way,
Speaker 9: but I do think where we are is a market
Speaker 9: where we just can't get enough compute capacity for all
Speaker 9: these workloads that are going to be running on every
Speaker 9: device in your home or your business.
Speaker 2: Meanwhile, though, perhaps some of the tension around compute and
Speaker 2: AI has been whether China is going to quote unquote
Speaker 2: beat out the United States, and that suddenly comes into
Speaker 2: a closer focus, particularly with the results of the US election.
Speaker 2: Does any of that concern you, particularly around the trade
Speaker 2: and embroilment and whether that courtails the industry and going forward.
Speaker 9: Yeah, a little hard to say, Caroline, relative to what
Speaker 9: could happen from perspective of tariffs, etc. I think the
Speaker 9: one thing that I'm happy about post the election on
Speaker 9: Tuesday is that here we are on Thursday morning and
Speaker 9: we have a result. We're not debating about what might
Speaker 9: happen or could happen or should happen. We at least
Speaker 9: have a result behind us, which is good for business,
Speaker 9: it's good for the country. Now going forward, we'll just
Speaker 9: have to see what goes forward. In terms of the
Speaker 9: things you mentioned, the China business for US has been
Speaker 9: very resilient and very strong, both in data center and
Speaker 9: phones that we've talked about, but also in the automobile sector.
Speaker 9: So regarding your question, we'll just have to wait and see.
Speaker 3: Talk to us a.
Speaker 2: Little bit about the phone part, and in particular whether
Speaker 2: or not just us replacing less often but with much
Speaker 2: more expensive phones is going to be able to what
Speaker 2: makes your numbers resilient going forward? Will that continue to
Speaker 2: upset the fact that we're just buying fewer on them.
Speaker 9: I do, and the reason for that is when you
Speaker 9: start thinking about all of these AI agents that will
Speaker 9: increasingly be running on your smartphone, that is going to
Speaker 9: drive demand for more and more capability on these premium phones.
Speaker 9: And that's great for ARM because if you think about
Speaker 9: a next generation smartphone still has to run games, it
Speaker 9: still has to run apps, it still has to connect
Speaker 9: to the internet. But now you want to run a
Speaker 9: large language model or a small language model, and you
Speaker 9: need to interface with a cloud and do security. That
Speaker 9: all requires a lot of compute, much more than in
Speaker 9: the past, which is great for ARM because you can't
Speaker 9: do it without using our technology.
Speaker 4: Renee Bloomberg reported that ARM was interested in buying some
Speaker 4: or all of Intel.
Speaker 5: What's the latest for that, please? Yeah, I read that.
Speaker 9: I'm not sure exactly where it came from, but I
Speaker 9: can't really comment on those kind of rumors.
Speaker 4: Small recent is a licensed dispute with Qualcom, a longtime
Speaker 4: partner and customer of yours. Wouldn't it just makes sense
Speaker 4: for you guys to work it out and settle and
Speaker 4: get something done so you can both just move forward.
Speaker 10: Yeah.
Speaker 9: So it's an ongoing litigation, as you know, and in
Speaker 9: just the baseline things, it's.
Speaker 5: A pretty straightforward case.
Speaker 9: Consent is required anytime one company buys another company that
Speaker 9: has ARMED technology. Consent was not granted in this case,
Speaker 9: and just by way of history, every contract we have
Speaker 9: has this clause, and in thirty five years, I think
Speaker 9: we've done one hundred and thirty assignments and one hundred
Speaker 9: and thirty times consent has been granted. This time it wasn't.
Speaker 9: We sent a notification to QUALKM that they were in
Speaker 9: breach of the license. We're very confident in our case.
Speaker 9: But more importantly, this is about fairness. It's about equity
Speaker 9: the ecosystem. We have lots of partners who've license our
Speaker 9: technology over the last decades. We need to be fair
Speaker 9: and equitable, and we just now have a situation, an
Speaker 9: unprecedented one where consent was not granted, and as a result,
Speaker 9: we took the action we felt we needed to take.
Speaker 2: How is it doing business therefore with what is a
Speaker 2: key customer but increasingly becoming more of a front of me.
Speaker 9: Well, you know, in terms of the litigations, I said,
Speaker 9: there's not much more I can add on to it.
Speaker 9: From a financial standpoint, we've made assumptions all along when
Speaker 9: we've given guidance and forecast to investors that we will
Speaker 9: not prevail in this case. So we've taken a fairly
Speaker 9: bearish position on the financial outlook, and that's really about
Speaker 9: about all I can say on it.
Speaker 4: RENEE at the end, market level and product level. What
Speaker 4: is the next phase farm, what's the next story that
Speaker 4: you think will carry the company forward?
Speaker 9: Thanks for asking that question. You know, compute subsystems and
Speaker 9: these are all about taking the pieces of IP, stitching
Speaker 9: them together together, providing them as a full end solution
Speaker 9: which greatly saves engineering time, time to market, time to
Speaker 9: profit for our partners. That is the direction of the company.
Speaker 9: We've seen amazing traction. We've had lots of design wins
Speaker 9: in the data center space. Media Tech just announced their
Speaker 9: first chip set recently using ARM computer subsystems for mobile.
Speaker 9: I see that to be pervasive going forward, and it's
Speaker 9: going to allow us to not only get great benefits
Speaker 9: to the customers' markets, but those drive much higher royalties
Speaker 9: than anything we've ever done in the past, which will
Speaker 9: drive growth for us.
Speaker 2: Just paint the picture of where ARM will be in
Speaker 2: the ecosystem five ten years from now. You're still majority
Speaker 2: held by soft Bank in terms of your outstanding shares.
Speaker 2: Massa has some big vision one hundred billion dollars to
Speaker 2: put in in terms of creating an AI behemoth.
Speaker 3: That complements what you do.
Speaker 2: But then there's also the element of whether you just
Speaker 2: stick to the designing part of the business.
Speaker 3: Where do you take this business? Renee as a CEO.
Speaker 9: We have a lot of optionality, Caroline in terms of
Speaker 9: the things that we do, and these are obviously the
Speaker 9: things we talk about all the time internally. Which direction
Speaker 9: do we go, how horizontal do we go, how vertical
Speaker 9: do we go. I'm not able, unfortunately to talk about
Speaker 9: unannounced products this morning with you, although I would love to,
Speaker 9: but I just can't. But we do focus very much.
Speaker 9: We do focus very much on the vertical and horizontal
Speaker 9: nature of the products and also AI and the form
Speaker 9: factors and everything.
Speaker 1: That goes forward.
Speaker 9: So five to ten years ago from five tent years
Speaker 9: from now, I do know that ARM will be involved
Speaker 9: in computing in a very large way.
Speaker 2: I'm CEO and A has you appreciate the time today,
Speaker 2: Thank you.
Speaker 11: I think av's are going to be a huge accelerant.
Speaker 11: Actually you say a TAM expander addressable work an expander
Speaker 11: for LYFT, because I think.
Speaker 3: What it's going to do is it's going to bring.
Speaker 11: New product onto the platform that people are going to like.
Speaker 11: Some people are going to like being driven by human.
Speaker 11: Some people are going to think being driven by robot
Speaker 11: is pretty cool. Some use cases favor one of the other.
Speaker 11: So anyway, I think the hybrid future is what we're
Speaker 11: looking at over time. Now Mobili they make the sensors,
Speaker 11: they made the tech. You probably have them in your
Speaker 11: car right now, Lay and assist, smart cruise control, all
Speaker 11: that stuff that's level two, level four is full self driving.
Speaker 5: So imagine a world.
Speaker 2: We now go to the President States Biden addressing the
Speaker 2: public from the Rose Garden.
Speaker 8: That's listening.
Speaker 1: Good to see this cabinet and the staff together here.
Speaker 10: Thank you, thank you, thank you, thank you, please, thank you,
Speaker 10: thank you, thank you.
Speaker 1: It's good to see you all. Particularly good to see
Speaker 1: my granddaughter sitting in the front row here at Fann Hawaii. Honey.
Speaker 1: For over two hundred years, America has carried on the
Speaker 1: greatest experiment in self government and history of the world.
Speaker 1: That's not hyperbole, that's a fact. For the people. The
Speaker 1: people vote and choose their own leaders, and they do
Speaker 1: it peacefully. And we're in a democracy. The will of
Speaker 1: the people always prevails. Yesterday I spoke with President elect
Speaker 1: Trump to congratulate him on his victory, and I assured
Speaker 1: him I direct my entire administration to work with his
Speaker 1: team to ensure a peaceful and orderly transition. That's what
Speaker 1: the American people deserve. Yesterday I also spoke Vice President Harris.
Speaker 1: She's been a partner and a public servant. She ran
Speaker 1: an inspiring campaign and everyone got to see something that
Speaker 1: I've learned early on to respect so much her character.
Speaker 1: She has a backbone like a ramrod. She has great character,
Speaker 1: true character. She gave her whole heart and effort, and
Speaker 1: she and her entire team should be proud of the
Speaker 1: campaign they ran. You know, the struggle for the soul
Speaker 1: of America since our very founding has always been an
Speaker 1: ongoing debate and still vital today. I know for some
Speaker 1: people it's a time for victory to state the obvious.
Speaker 1: For others, it's a time of loss. Campaigns, your contest
Speaker 1: of competing visions. The country chooses one or the other.
Speaker 1: We accept the choice the country made. I've said many times,
Speaker 1: you can't love your country only when you win. You
Speaker 1: can't love your neighbor only when you agree something I
Speaker 1: hope we can do. No matter who you voted for
Speaker 1: is see each other not as adversaries, but as fellow Americans.
Speaker 1: Bring down the temperature. I also hope we can later
Speaker 1: rest the question about the integrity of the American electoral system.
Speaker 1: It is honest, it is fair, and it is transparent,
Speaker 1: and it can be trusted, win or lose. I also
Speaker 1: hope we can restore the respect for all our election
Speaker 1: workers who busted their next risks of the outset. We
Speaker 1: should thank them, thank them for staffing voting sites, counting
Speaker 1: the votes, protecting the very integrity of the election. Many
Speaker 1: of them are volunteers who do it simply out of
Speaker 1: love for their country and as they did as they
Speaker 1: did their duty as citizens. I will do my duty
Speaker 1: as president. I'll fulfill my oath and I wanted the Constitution.
Speaker 1: On January twentieth, we'll have a peaceful transfer of power
Speaker 1: here in America. To all our incredible staff, supporters, cabinet members,
Speaker 1: all the people who have been hanging out with me
Speaker 1: for the last forty years. God love you. As my
Speaker 1: mother would say, thank you so much. You put so
Speaker 1: much into the past four years. I know it's a
Speaker 1: difficult time. You're hurting. I hear you, and I see you,
Speaker 1: but don't forget. Don't forget all the we accomplished. It's
Speaker 1: beending historic president, not because I'm president, because what we've done,
Speaker 1: what you've done, a presidency for all Americans. Much of
Speaker 1: the work we've done is already being felt by the
Speaker 1: American people, with the vast majority of it will not
Speaker 1: be felt we felt over the next ten years. We
Speaker 1: have legislation we passed. It's just only now just really
Speaker 1: kicking in. We're going to see over trillion dollars worth
Speaker 1: of infrastructure work done, changing people's lives in rural communities
Speaker 1: and communities that are in real difficulty because it takes
Speaker 1: time to get it done, and so much more. It's
Speaker 1: going to take time, but it's there. The road ahead
Speaker 1: is clear, assuming we sustain it. There's so much, so
Speaker 1: much we can get done and will get done based
Speaker 1: the way the legislation was passed, and it's truly historic.
Speaker 1: You know, we're leaving behind the strongest economy in the world.
Speaker 1: I know people are still hurting, but things are changing rapidly. Together,
Speaker 1: we've changed America for the better. Now we have seventy
Speaker 1: four days to finish the term. Our term. Let's make
Speaker 1: every day count That's the responsibility we have to the
Speaker 1: American people. Look, folks, you all know it in your lives.
Speaker 1: Setbacks are unavoidable, but giving up is unforgivable. Setbacks are unavoidable,
Speaker 1: but giving up is unforgivable. We all get knocked down.
Speaker 1: But the measure of our characters, my dad would say,
Speaker 1: is how quickly we get back up. Remember, a defeat
Speaker 1: does not mean we are defeated. We lost this battle.
Speaker 1: America of your dreams is calling for you to get
Speaker 1: back up. That's the story of America for over two
Speaker 1: hundred and forty years years in counting. It's a story
Speaker 1: for all of us, not just some of us. The
Speaker 1: American Experiment endors. We're going to be okay, but we
Speaker 1: need to stay engaged, We need to keep going, and
Speaker 1: above all, we need to keep the faith. So proud
Speaker 1: to have worked with all of you. I really mean it,
Speaker 1: I sincerely mean it. God bless you all, God bless America,
Speaker 1: and may God protect our troops. Thank you, thank you,
Speaker 1: thank you.
Speaker 4: Let's bring in Bloombak's Katie Lions, who joins us from
Speaker 4: New York City. Kaylee Plice, your summary of President Biden's comments, Well.
Speaker 12: The most important point about this speech from Biden at
Speaker 12: the Rose Garden in the White House that follows the
Speaker 12: speech the concession speech from Vice pres A. Kamala Harris yesterday,
Speaker 12: is that they both are acknowledging the decisive victory of
Speaker 12: Donald Trump and pledging for a peaceful transition of power.
Speaker 12: We just heard President Biden say those words that he
Speaker 12: called to congratulate Donald Trump yesterday, that he will do
Speaker 12: his duty on January twentieth to make sure there is
Speaker 12: a peaceful inauguration of Donald Trump in a power transition
Speaker 12: in the United States, similar in rhetoric to what we
Speaker 12: heard from Kamala Harris yesterday. The suggestion while this specific
Speaker 12: fight was lost as he casts this as campaigns being
Speaker 12: a contest between competing ideas, that that did not necessarily
Speaker 12: mean that there won't be ones one in the future.
Speaker 12: And interesting to also see President Biden here trying to
Speaker 12: characterize his legacy as well, talking about the accomplishments he
Speaker 12: sees this administration having completed, the idea that there's more
Speaker 12: work they will do in seventy four days, because in
Speaker 12: part this is the swan song of song of President Biden,
Speaker 12: who is getting a lot of blame within the Democratic
Speaker 12: Party for the loss of Kamala Harris, the suggestion that
Speaker 12: he stayed in the race too long. He ultimately, of course,
Speaker 12: did not bow out of it in tell July, and
Speaker 12: he is getting a great share of the blame for
Speaker 12: what happened this week and the victory of Donald Trump.
Speaker 12: But again that victory is being acknowledged. They are planning
Speaker 12: to work with the Trump transition team to make sure
Speaker 12: that this all happened smoothly. There could still be some hiccups,
Speaker 12: as Donald Trump is specifically a bit skeptical of the
Speaker 12: General Services Administration, for example, the intelligence agencies that would
Speaker 12: oversee things like background checks for those incoming into the administration.
Speaker 12: So there could still be some hiccups here. But by
Speaker 12: and large, they are committing to a peaceful transfer of power.
Speaker 12: They are conceding that Donald Trump won this race, and
Speaker 12: this is something we did not see four years ago
Speaker 12: in twenty twenty, Katie.
Speaker 2: They then also focus on the seventy four days still
Speaker 2: left to enact policies and indeed what has been achieved
Speaker 2: with there was a mention of infrastructure, and that plays
Speaker 2: a lot to the technology community here.
Speaker 3: How much do you think there will.
Speaker 2: Be any more passing of anything or any more focus
Speaker 2: on and potentially the future.
Speaker 3: If indeed, say a Chipsack is unraveled.
Speaker 12: Well that's going to be something that would be de
Speaker 12: within the next Congress. Obviously, there are still some months
Speaker 12: remaining here for this administration, in this Congress and House
Speaker 12: of Representatives. What they're likely to deal with in the
Speaker 12: lame dunk section session, which do tend to be more
Speaker 12: productive as the campaign has already completed at that time,
Speaker 12: really is going to surround funding, as there is a
Speaker 12: funding deadline, a government funding deadline on the twenty first
Speaker 12: of December. So they will need to make sure that
Speaker 12: the government stays funded for some period of time into
Speaker 12: the next administration first and foremost. But when the new
Speaker 12: Congress is sad and we do not yet know the
Speaker 12: entire makeup of it, Yes, it will be a Republican Senate.
Speaker 12: Whether it stays a Republican House at this time is
Speaker 12: still unclear, and it would take a Republican House likely
Speaker 12: to unravel any of the accomplishments of this administration. Legislation
Speaker 12: pass including the Chips Act, but the Inflation Reduction Act
Speaker 12: as well.
Speaker 2: Whoms Kendie lines, we appreciate it so much on the
Speaker 2: back of that Biden speech. Meanwhile, and let's get back
Speaker 2: to these markets.
Speaker 4: Yeah, and I'd like to go as crypto if that's okay,
Speaker 4: because we didn't have a show twenty four hours ago.
Speaker 4: But within the last twenty four hours, Bitcoin is US
Speaker 4: scott below seventy six thousand US dollars per token and
Speaker 4: it's kind of weird. I'm going to say it out loud,
Speaker 4: but that's all time high, right. I had to pull
Speaker 4: up the GP chart on my Bloomberg terminal and be like, oh,
Speaker 4: this is also happening in real time. And one of
Speaker 4: the big stories, of course of the last twenty four
Speaker 4: hours is some of the crypto related equities or stocks
Speaker 4: companies that either are a marketplace for have exposure to crypto.
Speaker 4: And I think the sentiment is simple, right, Caro, that
Speaker 4: President elect Trump, whether from a policy perspective or his
Speaker 4: own attitude, will approach crypto differently, and largely that's been
Speaker 4: seen as supportive of that industry, even though these specific
Speaker 4: names aren't doing much in either direction in the moment.
Speaker 2: Boy did they move higher yesterday, though we appreciate it.
Speaker 2: And let's go to Noel Aichson who's with US Triple
Speaker 2: Crown digital partner, author of the crypto is macro now
Speaker 2: and someone who put out a great note yesterday that
Speaker 2: I paid a lot of attention to Noel because it
Speaker 2: was outlining what next. Yes, there's a lot of euphoria
Speaker 2: around whether indeed the sec chare will change and be
Speaker 2: more or crypto loving or a nice put in place
Speaker 2: some sort of clarity as to what the future regulation
Speaker 2: will be rather than enforcement. What is next on the
Speaker 2: to do list? What will really substantiate these record highs?
Speaker 13: That's exactly what we're all asking Caroline, Thanks so much
Speaker 13: for having me. What is next very much depends on
Speaker 13: the priorities of the new administration when it gets in.
Speaker 3: I think we can assume that.
Speaker 13: Crep's crypto is not going to be top of their list.
Speaker 13: But he did make some very important promises, and it
Speaker 13: is a very sore thorn in the side of US
Speaker 13: financial infrastructure that this has not ment dealt with. There's
Speaker 13: going to be some limits as to what they can
Speaker 13: do in the short term, and perhaps crypto spirits are
Speaker 13: getting ahead of themselves a bit, but at the very least,
Speaker 13: a change of regime at the SEC would be very
Speaker 13: good news to enable so builders to go in and
Speaker 13: talk to the regulator without fear of an action. This
Speaker 13: would especially be good for assets whose status a spirity
Speaker 13: are lot is currently unclear, as well as those that
Speaker 13: want to provide services for those assets.
Speaker 4: Do you have a good sense of where President electromp
Speaker 4: will start any specific area of focus?
Speaker 13: I think the number one and the either low hanging
Speaker 13: fruit has to be a change at the SEC. I
Speaker 13: think that's pretty much on the cards that would have
Speaker 13: happened to be fair, I think any ways, but the
Speaker 13: type of change now obviously is going to be slightly
Speaker 13: different than had the neglection gone the other way. That's
Speaker 13: a fairly easy one, and again have to remember ever
Speaker 13: since Chevron was overturned, the SEC does have its hands
Speaker 13: tied as to the kind of rule making it can
Speaker 13: engage in. But just removing the fear of action is
Speaker 13: a very big deal.
Speaker 2: Then you articulate in the note that maybe we look
Speaker 2: at stable coin focus and indeed some sort of clarity
Speaker 2: on it going forward. We're also though thinking about what
Speaker 2: Congress looks like. There are a lot of people, a
Speaker 2: lot of races that were backed by an awful lot
Speaker 2: of money coming from the cryptoc community that wanted to
Speaker 2: see well more change From a congressional perspective, Senator Cynthia Loomis.
Speaker 2: She goes on to talk about the strategy bitcoin reserve
Speaker 2: that many of us really wonder how powerful that will
Speaker 2: really be. What do you make of that particular part
Speaker 2: of the promise from Trump.
Speaker 13: I'm hearing a lot of chatter about that, a little peo.
Speaker 13: Everyone's asking when, not if, but when is this going
Speaker 13: to happen. I to be honest, I'm skeptical we're going
Speaker 13: to get one of those. And I also think that
Speaker 13: Trump himself might walk back his promise on that when
Speaker 13: he realizes that it involves selling dollars to buy bitcoin.
Speaker 13: Even if he doesn't, it will be very hard to
Speaker 13: get through Congress. But to be honest, that isn't the
Speaker 13: most important thing. It would be just enough. It would
Speaker 13: be good news for the market if the US decides
Speaker 13: to not sell its current stash. And as for the
Speaker 13: stable coins that you're asking about, that again is low
Speaker 13: hanging fruit. A stable coin bill is bipartisan. This person
Speaker 13: of ironing out the details, what kind of requirements and
Speaker 13: reserves would they insist on. That's going to be pretty easy.
Speaker 13: And I think we're going to get that pretty much
Speaker 13: right out of the bat as well, depending on how
Speaker 13: fast Congress moves the course. And we do as as
Speaker 13: you said, Gary, and we do have the most crypto
Speaker 13: friendly Congress ever. That is really quite astonishing. What is
Speaker 13: really needed, though, is a crypto bill that will recognize
Speaker 13: that the definitions have changed, that new types of rules
Speaker 13: are needed.
Speaker 8: That is going to be more complicated.
Speaker 2: A Jason, We're going to be getting a back entory
Speaker 2: for Crown Digital partner.
Speaker 3: We thank you. Coming up, we're going to be speaking with.
Speaker 2: Parma Lucky, androil founder and President Trump heads back to
Speaker 2: the White House and questions linger around his defense tech starts.
Speaker 2: We discuss President elect Trump. This is Bloomberg Technology.
Speaker 4: As Donald Trump prepares to head back to the White House,
Speaker 4: there are questions around his policies on AI, defense tech
Speaker 4: and spending for More and roll founder Parma Lucky is
Speaker 4: back with us here on Bloomberg Technology, and I want
Speaker 4: to keep it focused on technology, but i'd also like
Speaker 4: to invite you'd start just to give your reaction to
Speaker 4: the outcome of the election, and I guess reflect your
Speaker 4: sentiments about the next four years.
Speaker 14: Well, I think it was obvious to most people who
Speaker 14: have been paying attention to what people are paying attention to.
Speaker 14: I know that that's contentious. A lot of people thought
Speaker 14: it was going to be close. I didn't think it was.
Speaker 14: Of course, I'm biased. I've been a Trump supporter for
Speaker 14: a long time. I supported him in twenty sixteen, I
Speaker 14: supported him in twenty twenty. I actually wrote a letter
Speaker 14: to him while I was in college in twenty eleven
Speaker 14: telling him that he should run for president. So I've
Speaker 14: been a fan of the Master of the Art of
Speaker 14: the Deal for a long time. It's nice to see
Speaker 14: it finding Colman. And I'm also a big fan of
Speaker 14: his pick in JD Vans for vice president.
Speaker 5: He's done an incredible job. Everyone else has got to
Speaker 5: see that.
Speaker 14: But I've known JD for a while and he's an
Speaker 14: incredible person. But my reaction on kind of the more
Speaker 14: business side, the defense side, is it's great to have
Speaker 14: someone inbound who is deeply, i guess, deeply aligned with
Speaker 14: the idea that we need to be spending less on
Speaker 14: defense while still getting more, that we need to do
Speaker 14: a better job for k during the defense tools that
Speaker 14: protect our country. Trump famously got involved in the nitty
Speaker 14: gritty of some of our aircraft carrier design and some
Speaker 14: of the procurement of air Force.
Speaker 5: One. To see that level of involvement from a president.
Speaker 14: Is pretty rare, and I think an indicator of his priorities.
Speaker 3: You wrote a letter to the guy back in twenty eleven.
Speaker 3: Who knows whether that inspired has run Parma.
Speaker 2: But you're close, of course with the VP elect as well.
Speaker 2: Are you talking about anyone to be the Defense secretary?
Speaker 2: Have you got anyone's here? Would you like anyone in particular?
Speaker 5: Look, I've got opinions. I'm in touch with the.
Speaker 14: Transition of team, of course, and I know a lot
Speaker 14: of people who are involved with the transition have known
Speaker 14: them for a long time. In many cases, I've heard
Speaker 14: a few names thrown around for a potential Secretary of Defense,
Speaker 14: but also for the many roles that are in maybe
Speaker 14: not the secretary level. They don't get quite as discussed
Speaker 14: on shows like yours, but it's still very, very important.
Speaker 5: So you know what, I.
Speaker 14: Don't want to throw any names out there because I
Speaker 14: would be happy with all There's not There's not a
Speaker 14: single name that I've heard that I'm unhappy with. And
Speaker 14: I have to I have to play nice and not say, oh, well,
Speaker 14: I prefer this guy or that guy.
Speaker 5: All of the names that I've seen are people who
Speaker 5: are do an incredible job. Thank you, Palmer.
Speaker 4: Anderil has spent years working with the Department of Defense, right,
Speaker 4: and I don't want you to reflect too much on
Speaker 4: the experience that has been, but maybe you could talk
Speaker 4: because through the changes you think are needed in that
Speaker 4: department structurally in terms of how government does business with
Speaker 4: private enterprise.
Speaker 5: Like Anderill.
Speaker 14: Sure, Look, I got into the defense space after I
Speaker 14: sold my first company, Oculus, to Facebook for a few
Speaker 14: billion dollars.
Speaker 5: Was working on VR there for a few years before
Speaker 5: I got fired.
Speaker 14: And the reason I got into national security is because
Speaker 14: I wanted to save taxpayers hundreds of billions of dollars
Speaker 14: a year by making tens of billions of dollars a year.
Speaker 5: And I think that that can be.
Speaker 14: Done by encouraging the creation of defense product companies that
Speaker 14: use their own money to decide what to build, how
Speaker 14: to build it when it's done, and then have skin
Speaker 14: in the game. And they fail, they lose money. When
Speaker 14: they succeed, they make money. I think the set of
Speaker 14: incentives that you see in a lot of defense contracting today.
Speaker 14: Defense procurement today cost plus contracting, where you're paid for
Speaker 14: your fixed time and materials and a fixed percentage of
Speaker 14: profit on top. It rewards exactly the wrong things. You
Speaker 14: make more money by making things more expensive. You make
Speaker 14: more plus by having more cost and that manifests in
Speaker 14: the form of programs that go too long, programs that
Speaker 14: are too expensive, components that are more expensive than need be,
Speaker 14: because it's really the only way to make more money
Speaker 14: on it. In fact, in some cases, they make more
Speaker 14: money with things that break frequently than not.
Speaker 5: And so I think what we really need.
Speaker 14: Is companies that are aligned with the way that we
Speaker 14: do business and the rest of our economy.
Speaker 5: You build a good product, you sell it, you make money.
Speaker 2: So in terms of contracting, if we see a shakeup,
Speaker 2: will you benefit the smaller? The startups benefit a little
Speaker 2: bit more than they have been Who the winners?
Speaker 3: Who are the losers? Do you think?
Speaker 5: Well?
Speaker 14: I think the winners are going to be particularly to
Speaker 14: two things. I think it's going to be a lot
Speaker 14: of these new startups that are up in the wake
Speaker 14: of Androl's success. I often say that other defense startups
Speaker 14: have raised a lot more money off my success than
Speaker 14: I have, which I'm fine with. And I've raised billions,
Speaker 14: but I've seen their pitch decks. They're saying, hey, Androl
Speaker 14: did it. The DoD is moving with this. People understand
Speaker 14: that this is a viable business model. I think another
Speaker 14: beneficiary is going to be companies that have been around
Speaker 14: for a long time that are very very competent, that
Speaker 14: know how to get things done, that know how to
Speaker 14: write a budget, that know how to build a team,
Speaker 14: that know how to build a product. The companies that
Speaker 14: suffer are going to be the ones that try to
Speaker 14: shunt responsibility for their failures over and over and over
Speaker 14: again onto the taxpayer. I think they're the ones who
Speaker 14: are going to struggle. And I don't want to make
Speaker 14: this sound like this is a this is just a
Speaker 14: Trump thing. This is a non partisan idea. I mean,
Speaker 14: Androl's been around for about eight years now. We did
Speaker 14: well under Trump in his first administration, and we did
Speaker 14: even better under Biden and his administration. I think we're
Speaker 14: going to do even better now. It's the defense space
Speaker 14: is one of the few that is I think actually
Speaker 14: successfully remained pretty non partisan, and that's aligned with Androl too.
Speaker 14: You know, I'm a Republican obviously, I'm the founder of ANDROL,
Speaker 14: but our CEO Brianship as a Democrat, He's fundraised for Jamala,
Speaker 14: He's done fundraisers for other Democrat politicians. The idea that
Speaker 14: the United States military should have the strongest military in
Speaker 14: the world, and that we should defend our allies around
Speaker 14: the world, not just with our military, but especially giving
Speaker 14: them the tools that they need to defend themselves.
Speaker 5: It's a pretty non partisan idea.
Speaker 4: Palmer has the election of Donald Trump caused Anderill to
Speaker 4: adjust or change planning for China and allies like taiwan.
Speaker 5: Ah.
Speaker 14: I don't think so, mostly because I was certain he
Speaker 14: was going to win.
Speaker 5: I think it was already big di in Okay.
Speaker 4: And one thing I'm fascinated by, and just bear with
Speaker 4: me on this one elon Musk Okay. There's an association
Speaker 4: between the two. The great unknown is whether Musk will
Speaker 4: hold a formal or informal role in some government department.
Speaker 4: But I guess what's your assumption and planning, how much
Speaker 4: attention he can keep Trump focused on defense space and
Speaker 4: what you kind of think it will actually lead to.
Speaker 5: Do you see what I mean?
Speaker 14: I think that Elon has outperformed every reasonable expectation of him.
Speaker 14: I was one of the people, I have to admit
Speaker 14: that didn't believe that he could successfully work on Twitter
Speaker 14: and SpaceX and Tesla and Solar City and Neurolink and
Speaker 14: politics and everything else and Diablo for Top twenty ranked
Speaker 14: all at the same time.
Speaker 5: But he's done it. And so on the one.
Speaker 14: Hand, it's easy to say, oh, man, I think it's
Speaker 14: going to be really hard for him to do all
Speaker 14: of that and also keep this administration maybe focused on
Speaker 14: things like space making, humanity and multiplanetary species and extra
Speaker 14: solar species eventually. But you know what, everyone who's ever
Speaker 14: bet against Elon has come away crying. So I think
Speaker 14: I'm probably just gonna have to say, yeah, I bet
Speaker 14: he's going to do it somehow, somehow, he's going.
Speaker 5: To do it.
Speaker 2: Andrew Founder Palmer Lucky. We appreciate it. Thank you for
Speaker 2: coming on a sketter Today's Tech Daily. Elon Musk's big
Speaker 2: bet on Donald Trump has paid off if you're looking
Speaker 2: at the count market capitalization of Tesla absolutely rocketing. But
Speaker 2: what does it mean for the value of other areas
Speaker 2: of his control X for example, the platform formerly known
Speaker 2: as Twitter those Max Trafkan discusses what has been a
Speaker 2: massive payoff if you think of one hundred and thirty
Speaker 2: million in and how much as wealth has ballooned by that.
Speaker 3: But what about the other areas of growth.
Speaker 15: Well, I think X we need to stop thinking about
Speaker 15: as a business that exists outside of Elon Musk's you know,
Speaker 15: general empire. You know, X's value has fallen a lot
Speaker 15: over the past two years, but I think at this
Speaker 15: point it's fair to say that it's influence, it's political worth.
Speaker 15: What it gives Elon Musk's other areas is probably worth
Speaker 15: more than the forty four billion dollars he paid for it,
Speaker 15: or at least the money that he's lost in running
Speaker 15: it over the past two years. SpaceX stands to gain
Speaker 15: tremendously from this election. You know, Trump on the stump
Speaker 15: was talking about Mars programs, talking about ordering rockets up
Speaker 15: from Elon, and if that happens, if there is a
Speaker 15: big Mars program that is unveiled, that's going to be
Speaker 15: worth billions, if not tens of billions of dollars to
Speaker 15: Elon Musk neuralink, his you know, brain implant thing that's
Speaker 15: federally regulated, the boring company federally regulated, AI potentially.
Speaker 4: Regulated, federally regulated is like the key point, right.
Speaker 5: You know, in.
Speaker 4: History, high profile people from the private sites of Going's
Speaker 4: government is not new like Gary Cohne Minuchin. Whatever the
Speaker 4: question is, will Musk see it through Max? Will he
Speaker 4: still be with Trump in some role a year from now,
Speaker 4: two or three years from now.
Speaker 15: Well, I think, and I think the comparison with folks
Speaker 15: like Gary Cohn is instructive. You know, there are lots
Speaker 15: of business people who during the last Trump presidency kind
Speaker 15: of navigated themselves towards Trump and ultimately I think had
Speaker 15: a not great experience. You know, this is a guy
Speaker 15: who takes up a lot of space in the room.
Speaker 15: He is, you know, famously strong headed, and you look
Speaker 15: at Elon Musk's personality and Donald Trump's personality, might say,
Speaker 15: how can these two men be in a room together? Now,
Speaker 15: the point I would put, what I would point out
Speaker 15: is that Elon Musk is way richer than any of
Speaker 15: those guys you mentioned, and way more powerful and has
Speaker 15: a real personal brand celebrity. He is as famous as
Speaker 15: some of the most famous people in the world. So
Speaker 15: he has leverage over Trump that maybe some of these
Speaker 15: other business people did not have Elon Musk. Now I
Speaker 15: think very much needs Donald Trump. But I would argue
Speaker 15: that Donald Trump and the Republican Party now needs Elon
Speaker 15: Musk too.
Speaker 2: There are other positions of power within the US government.
Speaker 3: The White House is not all of it. Will that
Speaker 3: be checks and balances?
Speaker 15: I mean, I think you have to look at the
Speaker 15: past Trump presidency and also, just like the character of
Speaker 15: Elon Musk and Donald Trump, these are not guys who
Speaker 15: like following the who necessarily are paying super close attention
Speaker 15: to the rules, and so I think that you know, yeah,
Speaker 15: we're going to see a lot of conversation about potential
Speaker 15: ethics violations. Should a guy who owns a major defense contractor,
Speaker 15: who controls a major defense contractor be giving the US
Speaker 15: government advice on defense personnel, that's probably going to run
Speaker 15: a foul of ethics rules. Now, do I expect that
Speaker 15: to slow down Elon Musk?
Speaker 4: No, I mean, to be fair, Pa Ma Lucky was
Speaker 4: just in the show, and he's a major defense contractor,
Speaker 4: and he was giving loads of advice to the future administration.
Speaker 15: So okay, But there's a difference between giving advice and
Speaker 15: being part of the White House.
Speaker 5: Right, that's I know there.
Speaker 4: Is and it's the only question formal role or informal role.
Speaker 4: And I promise you I'll try and find out Blooma's
Speaker 4: match chaffikin. Thank you very much, Carol.
Speaker 2: That does it for this edition of Blue Big Technology.
Speaker 2: Boy do we get through a lot, whether it's earnings
Speaker 2: that are still on a fed that's to come, but
Speaker 2: also about the election.
Speaker 4: Check out the pod you know where to find it.
Speaker 4: Team in New York and accept.
Speaker 5: Thank you. This is Bloomberg