WEBVTT - China Fights Back, South Korea Declares Martial Law 0:00:01.680 --> 0:00:05.039 From the heart where Innovation of Money and power Collie 0:00:05.240 --> 0:00:06.920 in Silicon Valley, NBN. 0:00:07.280 --> 0:00:10.800 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:10.840 --> 0:00:26.200 Ludlove live from New York. 0:00:26.320 --> 0:00:27.920 This is Bloomberg Technology coming up. 0:00:27.960 --> 0:00:32.280 Political anxiety hits tech, China dials up trade tensions with 0:00:32.320 --> 0:00:34.199 the US, and we bring you the latest on South 0:00:34.280 --> 0:00:38.320 Korea's move to martial law. Plus SpaceX weighs a tender 0:00:38.320 --> 0:00:41.600 offer which could boost its valuation to a whopping three 0:00:41.640 --> 0:00:44.240 hundred and fifty billion dollars, and we sit down with 0:00:44.280 --> 0:00:46.360 the CEO of AT and T as the company predicts 0:00:46.479 --> 0:00:49.320 double digit profit games in twenty twenty seven. 0:00:49.600 --> 0:00:51.519 But first we check in on these markets. 0:00:51.680 --> 0:00:54.120 We're off just slightly on the NASAQ one hundred on 0:00:54.120 --> 0:00:55.840 a day where Apple is that it had a new 0:00:55.960 --> 0:00:58.200 record high in video and the Green We've got a 0:00:58.240 --> 0:01:00.320 lot tugging us into the red in terms of key 0:01:00.360 --> 0:01:02.920 points moves. On the downside, Intel we'll get to, but 0:01:02.960 --> 0:01:04.679 I also want to shine a light on what's happening 0:01:04.720 --> 0:01:08.480 over in South Korea. Keystocks there from the technology perspective, 0:01:08.920 --> 0:01:14.560 sk Heiniz, Chip Focus, Samsung chip Phones, Everything technology key 0:01:14.600 --> 0:01:18.119 exporter for this particular country, We're off significantly when you're 0:01:18.160 --> 0:01:21.200 looking at those shares that are traded abroad, those in London, 0:01:21.200 --> 0:01:24.240 those in Germany for sk Heinex all as we understand 0:01:24.240 --> 0:01:27.880 that the leadership in South Korea moves to martial law, 0:01:27.959 --> 0:01:30.360 but of course members of the own party of the 0:01:30.360 --> 0:01:32.800 president are not agreeing with the move that's has been made. 0:01:32.920 --> 0:01:35.040 You've got to get up to the moment news with us. 0:01:35.280 --> 0:01:36.680 You can also do that if you're lucky enough to 0:01:36.680 --> 0:01:37.520 have a Blomberg terminal. 0:01:37.640 --> 0:01:38.880 Check out top Live. 0:01:39.240 --> 0:01:41.120 There's a blog there with the latest on what is 0:01:41.120 --> 0:01:42.240 occurring in South Korea. 0:01:42.560 --> 0:01:44.240 Just type in tliv go. 0:01:45.000 --> 0:01:46.880 But we want to bring you what is the up 0:01:46.920 --> 0:01:49.120 to the moment reporting from Mike Shepherd, who joins us 0:01:49.120 --> 0:01:51.480 from Washington. So much to be debating when it comes 0:01:51.560 --> 0:01:55.000 to geopolitics today. Mike, can you start with us for 0:01:55.200 --> 0:01:58.560 us in South Korea and just how extraordinary the movements 0:01:58.560 --> 0:02:00.400 are being made? 0:02:00.640 --> 0:02:02.720 Well, you know, as you said, Carolina, it even caught 0:02:02.880 --> 0:02:06.800 members of President Yun's own party and aids off guard. 0:02:07.440 --> 0:02:11.679 They weren't expecting this. It was born of perhaps frustration 0:02:11.919 --> 0:02:15.960 out of a deadlock over the budget between his minority 0:02:16.000 --> 0:02:20.680 party and the majority Democratic party in the nation's parliament, 0:02:20.960 --> 0:02:24.480 and that standoff really has bubbled over into the country's 0:02:24.520 --> 0:02:28.840 first declaration of martial law in forty four years. But 0:02:28.919 --> 0:02:32.320 it's uncertain where things are going from here. Troops are 0:02:32.360 --> 0:02:35.480 reported to be in the National Assembly building and some 0:02:35.639 --> 0:02:37.960 members of parliament may be moving. 0:02:37.639 --> 0:02:38.800 To try to block this. 0:02:38.919 --> 0:02:41.240 They have the authority to do so, but they need 0:02:41.280 --> 0:02:43.680 a majority present, which would be at least one hundred 0:02:43.720 --> 0:02:46.320 and fifty lawmakers. And as I said, this is a 0:02:46.320 --> 0:02:48.760 fast moving story, so we will have to keep close 0:02:48.840 --> 0:02:53.640 watch where this standoff between President Yun and his own 0:02:53.880 --> 0:02:55.200 lawmakers ends up. 0:02:55.280 --> 0:02:58.200 Heading we have actually got reggy news saying that the 0:02:58.240 --> 0:03:02.480 South Korean Parliament has a request of the marshal law 0:03:02.520 --> 0:03:05.440 to be lifted, and they say that South Korean lawmakers 0:03:05.440 --> 0:03:08.920 are going to vote on the marshal law lift noting 0:03:09.080 --> 0:03:11.240 as you say, and according to the latest blog that 0:03:11.320 --> 0:03:14.119 dozens of lawmakers might have managed to enter the main 0:03:14.240 --> 0:03:18.000 hall of the National Assembly according to footage of KBS 0:03:18.040 --> 0:03:19.920 locally there, and they need, as you say, one hundred 0:03:19.919 --> 0:03:23.440 and fifty law makers to be present. From a constitutional perspective, 0:03:23.960 --> 0:03:27.200 this does have an effect on liquidity. We know that 0:03:27.240 --> 0:03:29.280 they've made a move to ensure that liquidity is there 0:03:29.280 --> 0:03:32.080 for the markets. But we think from a technology perspective 0:03:32.160 --> 0:03:35.680 of Samsung, of sk Heinex, and of these companies that 0:03:35.760 --> 0:03:39.240 are currently worrying about the new US administration and what 0:03:39.280 --> 0:03:41.520 that means for tariffs and their own exports falling. 0:03:42.920 --> 0:03:45.560 There is so much happening for these companies right now 0:03:45.880 --> 0:03:50.960 between the US chip export curbs announced yesterday and then 0:03:51.000 --> 0:03:55.360 the cross currents with the incoming administration where the relationship 0:03:55.400 --> 0:03:59.400 between South Korea and the US and all the rest 0:03:59.440 --> 0:04:02.880 of the world with the President elect threatening tariffs on 0:04:03.040 --> 0:04:06.560 imports to the US. So adding this to the mix 0:04:06.680 --> 0:04:10.320 is just another bit of volatility for key companies like 0:04:10.560 --> 0:04:14.000 sk Heinex and Samsung Electronics. As you highlighted at the. 0:04:13.960 --> 0:04:18.240 Intro, YTNTV is currently reporting that some certain whether South 0:04:18.279 --> 0:04:22.400 Korean stock markets will indeed open on Wednesday. Just shifting gears, Mike, 0:04:22.480 --> 0:04:24.640 because we really want to talk to you about what's 0:04:24.680 --> 0:04:26.719 happening with the China US tip for tab as well 0:04:26.760 --> 0:04:30.000 concerns they're limitations on key metals for technology use. 0:04:31.520 --> 0:04:33.440 Well, I'm glad you brought this up because this is 0:04:33.480 --> 0:04:36.120 something that is not to be overlooked in all the 0:04:36.160 --> 0:04:41.159 global conversation about turmoil here and even in Paris. The 0:04:41.240 --> 0:04:46.000 Chinese took a significant move in the overnight hours to 0:04:46.120 --> 0:04:50.440 counter the Chips curbs that the Biden administration announced yesterday, 0:04:50.600 --> 0:04:54.480 and this would limit imports exports to the US from 0:04:54.560 --> 0:04:59.080 China of key minerals. These would include gallium and germanium 0:04:59.120 --> 0:05:02.880 and antimony. And these are look not something that's traded 0:05:03.000 --> 0:05:05.200 very heavily the way you might think of oil with 0:05:06.040 --> 0:05:10.080 a trillion dollar market. These are tiny amounts that are 0:05:10.120 --> 0:05:13.480 exported each year, but they are significant. They end up 0:05:13.520 --> 0:05:17.320 in semiconductors with military use, They end up in satellites, 0:05:17.640 --> 0:05:20.760 and these materials also show up in night vision goggles. 0:05:20.800 --> 0:05:23.800 So it is hitting the US in a way that 0:05:23.960 --> 0:05:27.560 is aimed at the defense industrial base and the tech 0:05:27.720 --> 0:05:30.960 industrial base as well. Now for the moment, the US 0:05:31.080 --> 0:05:35.920 is taking this and stride. The White House hasn't really 0:05:36.000 --> 0:05:39.840 responded in full to this, and the industry has been 0:05:39.880 --> 0:05:43.279 able to adapt so far to earlier restrictions that China 0:05:43.320 --> 0:05:46.080 had already imposed about a year ago. They've been able 0:05:46.160 --> 0:05:50.000 to find alternate sources of supply from their own inventories, 0:05:50.240 --> 0:05:53.720 and there are other places outside China where these minerals 0:05:54.040 --> 0:05:56.719 can be produced and found. It's just that the world 0:05:56.760 --> 0:05:59.960 has grown so dependent on China as the top supplier 0:06:00.080 --> 0:06:02.960 because it could be made so cheaply there and in 0:06:03.000 --> 0:06:04.000 such great abundance. 0:06:04.480 --> 0:06:08.039 Mike Shepherd, we bring this the need to know, Thank you, 0:06:08.520 --> 0:06:10.680 and let's just talk about some of the ramifications of 0:06:10.720 --> 0:06:15.120 the US limitations on exports of significant technology to China. 0:06:15.520 --> 0:06:17.440 We shine a light on an ASML of course chip 0:06:17.480 --> 0:06:19.880 equipment makeover in Europe. The company is stating that US 0:06:19.920 --> 0:06:23.520 authorities are imposing additional restrictions on suppliers for the export 0:06:23.560 --> 0:06:27.680 of chip manufacturing technology, and the regulations will become effective immediately, 0:06:28.160 --> 0:06:31.960 but they stay it doesn't expect long term demand to 0:06:31.960 --> 0:06:35.400 be impacted by these new regulations. Up two and a 0:06:35.440 --> 0:06:38.279 half percent over the last couple of training days. Let's 0:06:38.279 --> 0:06:40.240 stick with all things chips. Let's just take a look 0:06:40.240 --> 0:06:43.240 at Intel shares, actually one of the key drags on 0:06:43.320 --> 0:06:46.159 the benchmarks today. We're off by four percent again after 0:06:46.279 --> 0:06:49.400 yesterday's surprise departure a CEO Pat Gelsinger, opening the door 0:06:49.440 --> 0:06:52.479 potentially for the troubled company to consider maybe more deal 0:06:52.520 --> 0:06:55.640 options in the future, scenarios that, of course, he rejected 0:06:55.720 --> 0:06:58.960 during his time running the chip maker, Willimberg's Peter Elstrom 0:06:59.000 --> 0:07:01.000 joins us for more we think of m and A 0:07:01.560 --> 0:07:04.599 of course, plenty of reporting around what could be spun 0:07:04.640 --> 0:07:06.720 off and who would be buyers. What are you thinking 0:07:06.800 --> 0:07:08.440 about that being reignited, Peter. 0:07:09.680 --> 0:07:12.320 Yeah, Well, Intel has been at the heart of deal 0:07:12.400 --> 0:07:15.480 talks for a number of months. At this point, they've 0:07:15.520 --> 0:07:17.560 lost a lot of ground in the chip industry to 0:07:17.600 --> 0:07:21.080 a few of their competitors, notably in Vidia and TSMC 0:07:21.560 --> 0:07:24.559 in particular, and so there have been these discussions of deals. 0:07:24.600 --> 0:07:27.200 But Pat Keelsinger had been an advocate for keeping the 0:07:27.200 --> 0:07:30.080 company together, trying to get this money from the chipsack 0:07:30.160 --> 0:07:32.920 in the US, making investments in big companies in big 0:07:32.960 --> 0:07:35.480 fabs that they wanted to build out. And in particular, 0:07:35.720 --> 0:07:37.960 he wanted to move into the foundry business, that is, 0:07:38.000 --> 0:07:41.720 making bespoke chips for other players in the market like 0:07:41.760 --> 0:07:44.720 in Vidia. That's where TSMC is really excelled. So it 0:07:44.840 --> 0:07:47.800 invested billions of dollars into that initiative. He wanted to 0:07:47.880 --> 0:07:50.880 keep the manufacturing and the product designed together. Now that 0:07:50.960 --> 0:07:53.480 he's gone, you could see some changes in that attitude 0:07:53.480 --> 0:07:56.240 towards deals in particular, you could see them look at 0:07:56.320 --> 0:07:59.360 breaking up the manufacturing and the design. You could look 0:07:59.360 --> 0:08:01.800 at some alternates too. We know that Qualcom looked at 0:08:01.800 --> 0:08:04.680 trying to buy the company in the past. Intel has 0:08:04.720 --> 0:08:08.240 a couple of subsidiaries too that may be ripe for 0:08:08.320 --> 0:08:12.080 spin offs, including Alterra and Mobilize. Those are possible deals 0:08:12.080 --> 0:08:14.480 that you could look at now. But first and foremost, 0:08:14.520 --> 0:08:16.680 the board has to find a new CEO for this company. 0:08:16.800 --> 0:08:19.440 Certainly does, and they're paying a lot to the exiting 0:08:19.520 --> 0:08:23.000 CEO as well, at least a golden goodbye, it would 0:08:23.000 --> 0:08:25.080 seem that's right. 0:08:25.200 --> 0:08:28.080 Yeah, Gelsinger is collecting his pay package on the way out. 0:08:28.600 --> 0:08:31.720 He departed last weekend after this decision was made. He 0:08:31.800 --> 0:08:34.000 was not going to stick around to help find that 0:08:34.080 --> 0:08:36.840 new CEO or train that new CEO. So now the 0:08:36.880 --> 0:08:39.240 board took a dramatic step here. They pushed out somebody 0:08:39.280 --> 0:08:41.680 who had been well respected when he came in to 0:08:41.760 --> 0:08:44.120 the company, was expected to be the savior of the company. 0:08:44.160 --> 0:08:45.920 Now they need to find somebody else that's going to 0:08:45.960 --> 0:08:48.199 take the helm, and then they can set a strategy 0:08:48.280 --> 0:08:50.680 going forward, whether it's going to be deals or whether 0:08:50.720 --> 0:08:52.480 it's going to be doubling down in this idea that 0:08:52.720 --> 0:08:55.680 Intel can go back to its roots and really establish 0:08:55.880 --> 0:08:58.559 the industry leading manufacturing that it used to have. 0:08:59.120 --> 0:09:03.000 Peter Alstrom, thanks so much for the latest on Intel. Meanwhile, 0:09:03.000 --> 0:09:05.280 coming up more corporate news for you, AT and T 0:09:05.559 --> 0:09:08.480 seeing sustained profit growth for the next three years. We're 0:09:08.480 --> 0:09:11.080 going to be talking with the CEO, John Stankey join us. 0:09:11.559 --> 0:09:25.319 This is Bloue meg Technology. AT and T trading higher 0:09:25.320 --> 0:09:28.960 today as it says they see sustained profit growth over 0:09:29.000 --> 0:09:32.240 the next three years, including double digit games in twenty 0:09:32.280 --> 0:09:34.800 twenty seven. This is the company is really doubling down 0:09:34.800 --> 0:09:36.240 on its fiber rollout as well. 0:09:36.280 --> 0:09:37.240 I'm pleased to say. 0:09:37.000 --> 0:09:40.040 For more the AT and T CEO John Stankey joins us. 0:09:40.080 --> 0:09:44.480 Now from your own named stadium, John, let's talk a 0:09:44.480 --> 0:09:47.240 little bit about twenty twenty nine. You're expecting to have 0:09:47.520 --> 0:09:52.040 fifty million plus total locations with fiber. Why this big 0:09:52.080 --> 0:09:53.000 fiber focus? 0:09:53.120 --> 0:09:53.920 How do you get there? 0:09:54.679 --> 0:09:57.520 We look, we've had great success with what we've built 0:09:57.559 --> 0:10:01.040 thus far, and we see customer first of all, love 0:10:01.120 --> 0:10:04.400 the product, they stay with us longer, they drive better 0:10:04.480 --> 0:10:07.240 value into the business. We're having great success at selling 0:10:07.320 --> 0:10:10.960 multiple products into fiber households. Four out of every ten 0:10:11.440 --> 0:10:14.679 of our fiber subscribers also subscribe to our wireless service 0:10:14.720 --> 0:10:18.040 today and that's getting higher. And when you think about 0:10:18.080 --> 0:10:20.920 where technology is going in the future, workloads are only 0:10:20.960 --> 0:10:23.800 going to go up. We expect data consumption is going 0:10:23.840 --> 0:10:26.400 to increase about eighty percent over the next five years, 0:10:27.000 --> 0:10:29.360 and fiber is the one that can do that. It's 0:10:29.440 --> 0:10:32.680 the one that has the symmetrical bandwidth characteristics that will 0:10:32.720 --> 0:10:36.840 facilitate AI and sending more data up into a network 0:10:36.920 --> 0:10:41.040 than what comes down, which is traditionally how broadband networks 0:10:41.040 --> 0:10:43.440 are built today. And we think that's a great investment 0:10:43.440 --> 0:10:44.080 for the long haul. 0:10:44.480 --> 0:10:47.199 John, Just as you speak, we've got some breaking international news. 0:10:47.280 --> 0:10:49.240 We've just got to bring our viewers of South Korean 0:10:49.360 --> 0:10:52.880 lawmakers voting to request lifting martial law. 0:10:53.080 --> 0:10:54.760 We will bring you up to the moment news. 0:10:54.840 --> 0:10:57.480 But at South Korean National Assembly, Speaker Wo is saying 0:10:57.800 --> 0:11:01.200 they will protect democracy. Turn to you and a US 0:11:01.280 --> 0:11:04.560 focus and a business that you are currently wanting to see. 0:11:04.760 --> 0:11:08.600 Really the bandwidth and the broadband and the. 0:11:08.000 --> 0:11:09.920 Infrastructure play that you're offering. 0:11:10.240 --> 0:11:13.520 What's interesting is the way that you're fueling investment in 0:11:13.640 --> 0:11:16.720 fiber in particular is by doing innovative partnerships like the 0:11:16.720 --> 0:11:20.160 one with Blackrock. Do you need outside investment to commit 0:11:20.240 --> 0:11:21.680 to this sort of infrastructure rollout. 0:11:22.840 --> 0:11:26.440 Look, we have a great portfolio of options. We primary 0:11:26.600 --> 0:11:29.839 portfolio play is owned and operated where we take one 0:11:29.880 --> 0:11:32.720 hundred percent of the economics, We fund it, build it, 0:11:32.760 --> 0:11:35.800 and operate it ourselves. But we also realize we're in 0:11:35.880 --> 0:11:39.520 kind of a constrained window right now. Fiber is needed now. 0:11:39.960 --> 0:11:42.240 There isn't going to be a window that's open for 0:11:42.280 --> 0:11:45.640 a long period of time to do this work. Capital markets, 0:11:45.679 --> 0:11:48.400 of course, private capital markets sometimes provide a little bit 0:11:48.440 --> 0:11:51.440 of insulation that public markets won't, and in order to 0:11:51.440 --> 0:11:54.240 make sure we keep our lead, will balance that portfolio 0:11:54.280 --> 0:11:57.920 out and our relationship with Blackrock and our gigapower work 0:11:57.960 --> 0:12:00.560 has been really effective. What we've proven in the market 0:12:01.000 --> 0:12:04.040 is that we can operate outside of our traditional operating 0:12:04.160 --> 0:12:08.679 territory just as effectively as we have in our home territory. 0:12:09.120 --> 0:12:11.439 I think Blackrock, as a partner, has viewed it as 0:12:11.480 --> 0:12:14.760 being a really successful investment. They've been willing to put 0:12:14.800 --> 0:12:17.160 more into it, and we expect we're going to continue 0:12:17.200 --> 0:12:19.400 to use that as one of the tools to grow 0:12:19.400 --> 0:12:21.959 our footprint over time to get past that fifty million 0:12:22.000 --> 0:12:22.680 we're talking about. 0:12:22.800 --> 0:12:25.040 And it's really interesting you brought up, of course, AI 0:12:25.200 --> 0:12:28.000 and the demands there. In many ways, everyone's been ringing 0:12:28.000 --> 0:12:30.679 the hands of the energy infrastructure needs and black crocs 0:12:30.679 --> 0:12:33.640 sort of funding that infrastructure build out. But how significant 0:12:33.720 --> 0:12:37.319 is the AI demand and the strains on what you provide. 0:12:38.520 --> 0:12:41.840 It's an interesting issue. I think actually power consumption is 0:12:41.880 --> 0:12:44.600 going to be really important moving forward. That's one of 0:12:44.600 --> 0:12:48.800 the things we're talking about today with our analysts and investors, 0:12:48.840 --> 0:12:51.240 which is how do we shut down our century old 0:12:51.720 --> 0:12:56.000 copper infrastructure and all the electronics and equipment that support 0:12:56.040 --> 0:12:58.400 it that are really power hungry. And that's one of 0:12:58.440 --> 0:13:01.320 the ways that getting more this traffic over to fiber, 0:13:01.800 --> 0:13:05.280 which is passive and uses a lot less power, that 0:13:05.360 --> 0:13:08.400 we can actually help to offset some of the increase 0:13:08.480 --> 0:13:11.920 of what data demand and AI will drive moving forward. 0:13:11.920 --> 0:13:15.000 And we think that's a really important policy dynamic on 0:13:15.080 --> 0:13:17.800 this look. I think there's going to be a lot 0:13:17.840 --> 0:13:19.800 of issues that the country has to work through on 0:13:19.840 --> 0:13:24.120 getting the power grid to support leadership and AI. It's 0:13:24.160 --> 0:13:26.679 going to happen, maybe it gets slowed down a little bit. 0:13:26.800 --> 0:13:29.080 Maybe there's a few bumps in the road, but what 0:13:29.200 --> 0:13:31.760 we do know is that demand's going to be continuing 0:13:31.760 --> 0:13:32.280 to go up. 0:13:33.040 --> 0:13:36.120 Well, you're also talking to analysts and investors about today, 0:13:36.240 --> 0:13:39.880 is how you're giving money back big returns invests, whether 0:13:39.880 --> 0:13:42.640 you're doing it through driven in but also through buybacks 0:13:42.679 --> 0:13:45.679 as well. Why have you chosen that angle Now you've 0:13:45.720 --> 0:13:46.640 paid down debt. 0:13:47.760 --> 0:13:50.800 It's a good day when you're giving more back to shareholders. Look, 0:13:50.840 --> 0:13:53.720 we feel very comfortable with our debt position that we're 0:13:53.720 --> 0:13:55.559 going to arrive at in the middle of next year, 0:13:55.600 --> 0:13:59.160 and that's why we're making this announcement today. First of all, 0:13:59.200 --> 0:14:01.640 we did a really nice job of structuring our balance 0:14:01.679 --> 0:14:05.480 sheet properly, so we've got really attractive interest rates on 0:14:05.480 --> 0:14:09.120 our portfolio of debt. We've got it termed out. That's 0:14:09.160 --> 0:14:12.160 a really, frankly, a strategic asset. And the way it's 0:14:12.160 --> 0:14:15.400 set up right now, and given that we're largely investing 0:14:15.520 --> 0:14:19.640 organically in the business, reinvesting in our business like this 0:14:19.800 --> 0:14:22.800 and getting our leverage structure the way it is, feels 0:14:22.880 --> 0:14:27.160 very comfortable to us. Because every year we're reinvesting in capital, 0:14:27.200 --> 0:14:30.480 reinvesting in assets that we hold, and Frankly, when you 0:14:30.560 --> 0:14:31.720 kind of look at some of the m and A 0:14:31.800 --> 0:14:35.440 work we've done as we've restructured the business, we spun 0:14:35.480 --> 0:14:39.560 out certain non strategic assets. We haven't really gone back 0:14:39.600 --> 0:14:43.040 after the equity structure and reducing the share count outstanding, 0:14:43.080 --> 0:14:46.040 and when the dividend yield is still over five percent, 0:14:46.120 --> 0:14:49.120 we've got fantastic dividends coverage. This is an opportunity for 0:14:49.240 --> 0:14:51.440 us to maybe balance that out a little bit and 0:14:51.880 --> 0:14:53.800 bring a little bit of equity back in house. 0:14:54.080 --> 0:14:56.880 Okay, let's talk about that changing of your own portfolio 0:14:56.920 --> 0:14:57.840 of the assets you hold. 0:14:57.880 --> 0:14:59.920 DirecTV moving away mean. 0:15:00.440 --> 0:15:04.560 Will we see that being integral to these financial forecasts. 0:15:05.800 --> 0:15:08.400 No, we've actually today as we sit down and talk 0:15:08.520 --> 0:15:13.080 with the investment community, we'll be providing restated constructs under 0:15:13.960 --> 0:15:16.960 x direct TV. Assuming that we're going to close up 0:15:17.000 --> 0:15:19.920 by the middle of next year. We still see great 0:15:20.000 --> 0:15:23.360 improvements in our cash flow. We'll expect that we'll probably 0:15:23.360 --> 0:15:25.760 grow cash flow by about a billion dollars a year 0:15:26.280 --> 0:15:30.280 even without direct TV. As we move through this planning process, 0:15:30.520 --> 0:15:33.840 we see acceleration in our EPs, our ebit is going 0:15:33.880 --> 0:15:36.960 to continue to grow. So you know, Direct TV has 0:15:37.000 --> 0:15:39.680 been really good it's provided us a lot of cash coverage. 0:15:39.880 --> 0:15:42.200 We did a really nice job of managing the asset 0:15:42.320 --> 0:15:45.600 down to this point. It's time to focus on what 0:15:45.640 --> 0:15:48.080 we're going to do moving forward, which is build a 0:15:48.080 --> 0:15:51.480 world class connectivity business. And it's the right decision to 0:15:51.480 --> 0:15:52.240 make at this point. 0:15:52.400 --> 0:15:52.520 Now. 0:15:52.600 --> 0:15:54.920 A lot of analysts are echoing that, and we are, 0:15:54.960 --> 0:15:57.720 of course with John Sanky the AT and TCO to 0:15:57.880 --> 0:16:02.520 our worldwide radio and TV audiences. Many relieve that you're 0:16:02.520 --> 0:16:05.160 getting back to what you do best, which is telecoms. 0:16:05.440 --> 0:16:09.560 Within that though, is you know, some really clear clarity 0:16:09.760 --> 0:16:12.480 being given on the numbers. You're getting forty billion dollar 0:16:12.560 --> 0:16:16.680 plus of an anticipated shareholder returns, fifty billion dollars plus 0:16:16.920 --> 0:16:18.160 of financial capacity over. 0:16:18.080 --> 0:16:20.840 The next three years. What are the risks we're. 0:16:20.720 --> 0:16:23.120 At this time of a new administration coming in. There 0:16:23.120 --> 0:16:25.600 are macro headwinds, global headwinds. 0:16:25.600 --> 0:16:27.040 Are there risks to these numbers? 0:16:28.040 --> 0:16:30.920 Well, I think every time there's an administration change, there's 0:16:31.000 --> 0:16:35.400 usually a discussion about boy could change his negatively impacted business. 0:16:35.440 --> 0:16:37.280 I mean a call four years ago there was a 0:16:37.320 --> 0:16:39.560 little bit of that narrative going on, and I think 0:16:39.600 --> 0:16:42.360 we've done just fine for the last four years. And frankly, 0:16:42.960 --> 0:16:45.640 some of the things that I hear right now, tax policy, 0:16:45.840 --> 0:16:52.200 possibly reinstituting accelerated depreciation, those things could be very very 0:16:52.240 --> 0:16:54.480 good for our business. And in fact, when they were 0:16:54.480 --> 0:16:57.920 in place and they weren't lapsing, we were investing at 0:16:57.960 --> 0:17:01.000 a higher level. And so I think if this administration, 0:17:01.200 --> 0:17:05.159 incoming administration, follows through on what they'd like to do, 0:17:05.200 --> 0:17:08.840 which is to put pro investment policies in place for 0:17:09.080 --> 0:17:12.000 the nations one of the nation's largest capital investors, that's 0:17:12.040 --> 0:17:13.719 going to be a really good thing for us. So 0:17:13.840 --> 0:17:17.320 we watch that carefully, certainly like everybody else. There's other 0:17:17.359 --> 0:17:19.400 policies up in the air around tariffs and a few 0:17:19.400 --> 0:17:22.200 other things that we're all kind of wondering what might 0:17:22.240 --> 0:17:25.920 occur with that. I think sane minds will prevail. I 0:17:25.920 --> 0:17:28.840 think some of what we're hearing right now is directed 0:17:28.840 --> 0:17:31.840 to make sure that we negotiate from a position of strength, 0:17:32.200 --> 0:17:34.679 and we make sure that we respect the US market 0:17:34.880 --> 0:17:37.840 as strong and as meaningful as it is, that people 0:17:37.880 --> 0:17:40.520 should play on a fair and level playing field when 0:17:40.520 --> 0:17:43.160 they gain access to it. And I'm hopeful that we'll 0:17:43.160 --> 0:17:45.879 see good policy comes out that drives good investment and 0:17:45.880 --> 0:17:47.280 good economic returns As. 0:17:47.200 --> 0:17:50.639 A result, well, returns are up on your shares. You're 0:17:50.680 --> 0:17:53.919 currently training at the highest since twenty twenty one. More broadly, 0:17:53.960 --> 0:17:56.200 do you think that you can sustain this sort of growth? 0:17:57.000 --> 0:17:59.359 We do, Otherwise we wouldn't be out giving the three 0:17:59.440 --> 0:18:02.320 year guidance that we're giving. We feel, first of all 0:18:02.359 --> 0:18:05.640 strong and the fundamentals. Consumers need to use more Internet, 0:18:06.040 --> 0:18:09.719 they need to get higher performance networks to support that. 0:18:09.720 --> 0:18:12.360 That's the business we're in, and we're going to talk 0:18:12.400 --> 0:18:14.639 a little bit this afternoon with our investors about our 0:18:14.680 --> 0:18:17.639 ability to manage the cost structure in dealing with that 0:18:17.760 --> 0:18:21.760 accelerating and increased growth so that as customers use more 0:18:21.800 --> 0:18:24.640 that we can ultimately drop more cash to the bottom line. 0:18:24.960 --> 0:18:28.160 And that growth dynamic of us getting more efficient people 0:18:28.240 --> 0:18:30.439 using more of the product, We think that's going to 0:18:30.480 --> 0:18:32.920 sustain itself over the next three years, and that's why 0:18:32.960 --> 0:18:34.359 we gave the guidance that we gave. 0:18:35.320 --> 0:18:38.679 We so appreciate you coming live at and T Stadium 0:18:38.720 --> 0:18:41.000 over in Texas, John Stanky at and. 0:18:40.920 --> 0:18:42.359 T C Stay WI. 0:18:42.400 --> 0:18:43.280 Thanks for having me in. 0:18:44.320 --> 0:18:46.720 Meanwhile, let's talk about a whopping valuation going on three 0:18:46.760 --> 0:18:49.919 hundred and fifty billion dollars as how much SpaceX is 0:18:49.960 --> 0:18:52.720 now aiming at the company now in talks to sell 0:18:52.880 --> 0:18:55.760 insider shares that can make you know, Musks Rocket and 0:18:55.800 --> 0:18:58.639 satellite company the most valuable startup if it got that 0:18:58.760 --> 0:19:02.880 valuation to sources, Katie Ruth joins us now and this 0:19:02.920 --> 0:19:06.240 is once again secondary market activity, a tender offer. 0:19:06.440 --> 0:19:10.080 Who will be selling to who? Katie? That's right. 0:19:10.160 --> 0:19:14.399 Well, so insiders such as employees and in theory existing 0:19:14.520 --> 0:19:20.199 venture capitalists can sell their shares to new investors. The 0:19:20.280 --> 0:19:24.719 three hundred and fifty billion dollar valuation is a huge jump. 0:19:25.000 --> 0:19:27.800 Even just last month they were discussing two hundred and 0:19:27.840 --> 0:19:33.520 fifty five billion valuation. But the recent success of the 0:19:33.560 --> 0:19:38.479 Saddle Starship launch and then also Elon's ties to Trump 0:19:38.480 --> 0:19:42.359 and Trump's when I guess, created more investor enthusiasm. So 0:19:42.400 --> 0:19:45.359 it's now a record for most valuable startup in the world. 0:19:46.320 --> 0:19:50.440 Extraordinary And many then say, well when they exit, when 0:19:50.520 --> 0:19:53.159 might some of these secondary shares be sold on an 0:19:53.160 --> 0:19:55.240 open market in an IPO. Do you think this sort 0:19:55.240 --> 0:19:57.879 of activity in the secondary market puts off such a 0:19:57.920 --> 0:19:59.840 liquidity event, Katie. 0:20:00.480 --> 0:20:03.560 Sure, And so you know they wouldn't do this. Most 0:20:03.600 --> 0:20:05.960 likely if they were on the verge of IPO, because 0:20:06.000 --> 0:20:08.520 you wouldn't want to dilute. Uh, you wouldn't want to 0:20:08.520 --> 0:20:12.960 reduce the demand from the institutional investors, and so you 0:20:12.960 --> 0:20:14.480 wouldn't do this kind of thing on the eve of 0:20:14.520 --> 0:20:17.560 an IPO. But uh, you know it has been reported 0:20:17.600 --> 0:20:19.960 and it is known that at some point in time 0:20:20.040 --> 0:20:25.160 they want to spin out Starlink, their satellite internet provider, 0:20:25.400 --> 0:20:28.600 and create the whole separate business with that, and that 0:20:29.400 --> 0:20:32.240 Starlink could go public. But nothing immin it. 0:20:33.920 --> 0:20:37.480 Katie, We thank you, Katie Ruth there in La. Meanwhile, 0:20:37.520 --> 0:20:41.680 staying in Musk's world, deliveries from Tesla's Shanghai factory fell 0:20:41.720 --> 0:20:44.080 for a second month in November, down four point three 0:20:44.080 --> 0:20:46.160 percent year on year, according to data from the China 0:20:46.200 --> 0:20:49.359 Passenger Car Association. This comes even as the Chinese government 0:20:49.480 --> 0:20:52.560 increased subsidies to entice more consumers to. 0:20:52.560 --> 0:20:53.959