WEBVTT - Single Best Idea with Tom Keene: Wei Li & David Westin

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea. We'll be quick about it. On a Monday,

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<v Speaker 2>sort of an odd Monday to say the least. Some

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<v Speaker 2>merger activity, but just a really eclectic set of conversations.

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<v Speaker 2>We did the H one B debate. Boy, we went

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<v Speaker 2>on both sides, Presidents correct, bring it on American for

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<v Speaker 2>America jobs, and a whole other side saying, you know what,

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<v Speaker 2>there's not enough engineers in America for the need, and

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<v Speaker 2>on we went, That's what we want to do is

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<v Speaker 2>generate the conversation around some of these seismic events. Waylee

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<v Speaker 2>was in with Blackrock, I asked her just the mathematics

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<v Speaker 2>dynamics of the massive capex in artificial intelligence.

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<v Speaker 3>I would say that actually, it's remarkably hard to get

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<v Speaker 3>precise number written an investment for these capex because it's

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<v Speaker 3>quite well hidden and they're not obligated to report them

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<v Speaker 3>in a very precise form. But I would make the

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<v Speaker 3>general observation that markets are letting them off the hook

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<v Speaker 3>right now because it's really an existential build out race.

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<v Speaker 3>You're either spending and overspending to stay in the game

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<v Speaker 3>and stay on the table, or you will be viewed

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<v Speaker 3>as well, you won't be part of the future mix, right,

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<v Speaker 3>So I think markets are giving these tech companies some

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<v Speaker 3>leeway to spend and overspend. We pay attention to free

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<v Speaker 3>cash flow as a percentage of free cash flow. It's

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<v Speaker 3>gone up quite a bit in terms of the kapex spent,

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<v Speaker 3>but not to a level that they can't afford. Not

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<v Speaker 3>to mention, they can always having too funding market public

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<v Speaker 3>and private to raise additional cash to spend. Right So,

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<v Speaker 3>you know, like right now, it's still early in this

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<v Speaker 3>in this journey, and we see all systems go when

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<v Speaker 3>it comes to AI build out.

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<v Speaker 2>Really a black Recers thought that was really wonderful. I

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<v Speaker 2>do want to say if I go to the Bloomberg

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<v Speaker 2>terminal in the FA screen, I and I think all

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<v Speaker 2>of us underestimate the cash generation of these juggernauts. Wayley

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<v Speaker 2>alluded to that, but it's just jaw dropping to see

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<v Speaker 2>the ability to raise cash from profit at some of

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<v Speaker 2>these technology country companies. It was a tree today to

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<v Speaker 2>have David Weston in the studio, of course, the driving

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<v Speaker 2>force of Wall Street Week here at Bloomberg. We talked

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<v Speaker 2>to him about education, higher education, the struggles of the universities.

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<v Speaker 2>But they did an audible and he was wonderful. David

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<v Speaker 2>Weston is the former leader of ABC News. Michael Eisner

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<v Speaker 2>was out with a blistering critique of Disney and ABC

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<v Speaker 2>this weekend. Of course, he did so much to further

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<v Speaker 2>the career of mister Eiger. As an aside, I saw

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<v Speaker 2>Sarah mcglough from the Canadian singer Songwriter saying she's not

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<v Speaker 2>gonna do Lilith Fair project with Disney. Okay, fine. We

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<v Speaker 2>asked David Weston about this moment for Disney and ABC.

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<v Speaker 1>Bob has been a very powerful, very successful CEO, done

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<v Speaker 1>his way too soon, but is there a real issue

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<v Speaker 1>here for his long term reputation and brand. I would

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<v Speaker 1>have to say, as his friend, Yeah, you got a problem,

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<v Speaker 1>and I don't know exactly how you get out of this.

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<v Speaker 1>I don't think. I do think is I think Jimmy

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<v Speaker 1>Kimmel is going to have to sit down with somebody

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<v Speaker 1>and talk, and Bob Iger is going to have to

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<v Speaker 1>sit down with somebody, and mister.

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<v Speaker 2>Kimmel has to speak with ABC and Disney or talk

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<v Speaker 2>to somebody else.

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<v Speaker 1>They've got to figure out how to deal with the public.

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<v Speaker 1>I mean, Bob has got to explain what he did

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<v Speaker 1>at somewhere sometime, somehow, which he doesn't want to do.

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<v Speaker 1>I'm sure he's got to do.

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<v Speaker 2>That, completely unrehearsed and unplanned. David Weston of Wall Street.

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<v Speaker 2>We here at Bloomberg an event for a week. Here.

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<v Speaker 2>I have to try to get home in the un

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<v Speaker 2>traffic for all of us. It's a battle. Some of us.

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<v Speaker 2>We may sleep under a park bench at Central Park

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<v Speaker 2>on Tuesday or Wednesday. We're on a podcast Apple and

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<v Speaker 2>Spotify on YouTube podcasts at single best idea