WEBVTT - Tesla Surges, TikTok Bill Signed Into Law 0:00:02.480 --> 0:00:09.120 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.119 --> 0:00:12.600 Leaving having made his speech following signing of the bill 0:00:12.720 --> 0:00:16.200 worth some ninety five billion dollars in aid to Ukraine, 0:00:16.440 --> 0:00:19.960 of course, to Israel as well as the Indo Pacific. 0:00:20.520 --> 0:00:24.560 Within that, of course is also the ban or diverst 0:00:24.640 --> 0:00:27.280 of TikTok. Now Biden is saying that the US is 0:00:27.280 --> 0:00:29.280 actually going to start sending military aid to. 0:00:29.360 --> 0:00:30.840 Ukraine within hours. 0:00:31.320 --> 0:00:34.440 He also goes on to say than regarding Israel, then 0:00:34.440 --> 0:00:36.520 it must make sure that the US has provided aid 0:00:36.880 --> 0:00:39.520 reaches Gaza. Let's get more of this with Klie lines 0:00:39.520 --> 0:00:41.040 for more and first the aid. 0:00:41.159 --> 0:00:43.560 Klie, what did you make of this speech from Biden. 0:00:44.800 --> 0:00:47.239 Well, he clearly Caroline was trying to convey that this 0:00:47.280 --> 0:00:51.040 aid package was just as much about US national security 0:00:51.040 --> 0:00:53.320 interests as it was about the interests of our allies. 0:00:53.360 --> 0:00:56.800 He said that repeatedly, specifically on the subject of Ukraine. 0:00:56.840 --> 0:00:59.360 The idea that Russia initially thought it could break the 0:00:59.360 --> 0:01:01.440 will of the Ukrainian people, then it thought it could 0:01:01.480 --> 0:01:03.680 break the will of NATO and the United States. 0:01:03.360 --> 0:01:05.040 And that resolve still stands. 0:01:05.080 --> 0:01:08.360 In the words of Vladimir of President Biden, he said, 0:01:08.360 --> 0:01:11.080 we bowed no one, certainly not Vladimir Putin. And as 0:01:11.080 --> 0:01:13.440 you say, Caroline, he does indicate that within hours we 0:01:13.880 --> 0:01:17.440 will see starts of this aid moving toward Ukraine. On 0:01:17.480 --> 0:01:19.959 the subject of Israel, not only was he talking about 0:01:20.120 --> 0:01:22.960 the defense it could provide Israel in terms of air defenses, 0:01:23.000 --> 0:01:25.640 making sure that they can withstand a future attack like 0:01:25.640 --> 0:01:28.720 the one Iran attempted just ten days ago, but he 0:01:28.800 --> 0:01:31.120 also made the point to talk about humanitarian aid, the 0:01:31.160 --> 0:01:34.080 idea that this will provide aid to Palestinian people, and 0:01:34.120 --> 0:01:36.119 he had pretty sharp words for Israel. 0:01:36.200 --> 0:01:37.479 They must make. 0:01:37.360 --> 0:01:39.840 Sure all of this aid reaches the Palestinians in Gaza 0:01:40.120 --> 0:01:42.880 without delay, going on to say he wants to see 0:01:42.920 --> 0:01:45.960 the hostages that still remain in Hamas's hands returned and 0:01:46.040 --> 0:01:49.720 a cease fire deal reached. It was also interesting that 0:01:49.800 --> 0:01:52.040 he pointed out what this bill did not contain, which 0:01:52.080 --> 0:01:55.080 of course, was any measures on border security. There had 0:01:55.120 --> 0:01:58.000 been with the supplemental Aid package, a border deal that 0:01:58.080 --> 0:02:01.120 was struck earlier this year between bipart negotiators in the 0:02:01.160 --> 0:02:03.240 Senate in the White House. It ended up going nowhere 0:02:03.240 --> 0:02:05.800 in Congress and part in the face of opposition from 0:02:05.800 --> 0:02:08.440 former President Donald Trump and he made sure to call 0:02:08.480 --> 0:02:10.680 that out. As we know, though, while border measures were 0:02:10.680 --> 0:02:12.520 not in it, there were a number of other measures 0:02:12.880 --> 0:02:15.520 that were that don't relate directly to aid to allies, 0:02:15.520 --> 0:02:18.880 including the seizure of frozen Russian assets, which yes, can 0:02:19.000 --> 0:02:21.760 be used to fund Ukraine's war effort. But then of 0:02:21.880 --> 0:02:25.360 course also that TikTok Divestit Turbil Keayley. 0:02:25.440 --> 0:02:28.160 One other area of importance to our audience as well 0:02:28.240 --> 0:02:32.400 Bloomberg Technology is Indo Pacific Taiwan in particular a part 0:02:32.480 --> 0:02:36.400 of this bill in the context of semiconductor electronics infrastructure. 0:02:36.760 --> 0:02:38.880 Just explain the parameters of the bill that relate to 0:02:38.880 --> 0:02:39.359 that region. 0:02:40.600 --> 0:02:42.760 Yeah, this is a much smaller amount of money ed 0:02:42.800 --> 0:02:45.239 than the money that's being provided to Ukraine or Israel, 0:02:45.400 --> 0:02:47.640 to the tune of about sixty plus billion dollars in 0:02:47.720 --> 0:02:52.239 Ukraine's case, twenty billion dollars plus humanitarian aid in Israel's case. 0:02:52.280 --> 0:02:56.200 The Taiwan portion was much smaller, around nine billion dollars. 0:02:56.240 --> 0:02:58.760 And it actually is more broadly about the Indo Pacific, 0:02:58.880 --> 0:03:04.080 not Taiwan individually, although Taiwan certainly represents a big chunk 0:03:04.120 --> 0:03:06.040 of this and that kind of speaks to this idea 0:03:06.080 --> 0:03:08.240 that this in national security interest. They are trying to 0:03:08.240 --> 0:03:11.560 combat many different fronts and many different theaters Russia on 0:03:11.600 --> 0:03:13.560 the one hand in Ukraine, of course, the threat from 0:03:13.560 --> 0:03:15.840 Iran and Iranian proxies in the Middle East, but then 0:03:15.840 --> 0:03:18.600 also the ongoing threat in China, and making sure that 0:03:18.639 --> 0:03:21.960 there is security given the importance of Taiwan not only 0:03:22.040 --> 0:03:24.720 to the US in terms of symbolism and representation of 0:03:24.760 --> 0:03:28.160 a democracy and wanting to maintain that, but then also 0:03:28.200 --> 0:03:30.080 of course the security in that region, given it is 0:03:30.160 --> 0:03:32.360 vital in terms of the supply chain, but also there 0:03:32.400 --> 0:03:35.440 are concerns with other US allies and others in the region, 0:03:35.480 --> 0:03:38.080 like the Philippines in regard to the South China Sea. 0:03:38.160 --> 0:03:40.360 So that is why you see it more broadly be 0:03:40.480 --> 0:03:44.040 the Indo Pacific region that was also addressed and talked 0:03:44.040 --> 0:03:47.320 about a lot less when we were discussing this legislation. 0:03:47.240 --> 0:03:50.000 Kaylene, when we think about Asia, when we think about 0:03:50.040 --> 0:03:52.160 China e Also I think that at the moment of 0:03:52.240 --> 0:03:56.040 President Biden speaking on this signing of the bill, show too. 0:03:56.360 --> 0:03:59.440 The CEO of TikTok also put out his own statement, 0:04:00.120 --> 0:04:03.040 actually using another social media platform of x to post 0:04:03.320 --> 0:04:06.520 his video response saying no, this bill is a disappointing 0:04:06.560 --> 0:04:07.960 moment outline. 0:04:08.280 --> 0:04:09.800 Thus follow what this means the TikTok. 0:04:11.120 --> 0:04:13.400 Well, it was interesting to listen to the language of 0:04:13.400 --> 0:04:15.600 show Choo in this video, Caroline, because of course, what 0:04:15.680 --> 0:04:18.880 this legislation actually does is say TikTok will be banned 0:04:18.880 --> 0:04:21.800 in the US if it is not divested within the 0:04:21.839 --> 0:04:24.960 requisite timeline, which is actually nine months, with the possibility 0:04:24.960 --> 0:04:28.520 of a three month extension, should a sale process already 0:04:28.520 --> 0:04:31.760 be underway, if TikTok or byte Dance specifically were to 0:04:31.920 --> 0:04:35.120 move ahead with the sale of its US division byte Dance, 0:04:35.200 --> 0:04:37.680 though specifically TikTok does not indicate that they are going 0:04:37.720 --> 0:04:40.360 to do so, so Chu said, we will keep fighting 0:04:40.400 --> 0:04:42.359 for these rights in court. He said, the facts in 0:04:42.400 --> 0:04:45.200 the Constitution are on our side and that they expect 0:04:45.200 --> 0:04:47.560 to prevail, basically just signaling that this is going to 0:04:47.560 --> 0:04:50.800 be a protracted legal battle over this issue ahead. And 0:04:50.839 --> 0:04:53.080 despite what lawmakers may say that they want to see 0:04:53.120 --> 0:04:55.880 TikTok continuing to operate in the US, they just want 0:04:55.920 --> 0:04:58.400 it in US hands rather than in the hands of 0:04:58.440 --> 0:05:00.560 a Chinese company that could be shared data with the 0:05:00.640 --> 0:05:03.799 Chinese Communist Party. Shoultchu seems like he begs to differ 0:05:03.839 --> 0:05:06.240 on that he said in this video. Make no mistake, 0:05:06.360 --> 0:05:08.560 this is a ban and a band on you and 0:05:08.600 --> 0:05:10.600 your voice, which is one of the issues that opponents 0:05:10.600 --> 0:05:14.640 of this legislation specifically pertaining to TikTok had around First 0:05:14.640 --> 0:05:16.680 Amendment rates and the idea that this could maybe be 0:05:17.040 --> 0:05:19.560 in violation of those content creators who are trying to 0:05:19.640 --> 0:05:22.919 use this platform to share their voice. Obviously, those concerns 0:05:23.120 --> 0:05:25.880 did not prevail over the wider concerns that proponents of 0:05:25.880 --> 0:05:29.280 this legislation had about the data security of Americans and 0:05:29.400 --> 0:05:32.559 potential Chinese manipulation of the content that they are seeing 0:05:32.560 --> 0:05:33.400 on this platform. 0:05:34.080 --> 0:05:37.360 We will continue to cover this very big TikTok story 0:05:37.440 --> 0:05:39.279 later in the hour of Bloombo's klie Lions. 0:05:39.360 --> 0:05:40.440 Thank you very much. 0:05:40.600 --> 0:05:44.360 The other big in top technology story is Tesla. Tesla 0:05:44.360 --> 0:05:47.560 shares are up twelve percent off session highs where they 0:05:47.560 --> 0:05:50.760 were up sixteen percent and on track for their biggest 0:05:50.760 --> 0:05:51.880 gain in. 0:05:52.080 --> 0:05:54.080 Two years, more than two years. 0:05:54.360 --> 0:05:58.600 Three key points from earnings Tesla is accelerating the introduction 0:05:59.120 --> 0:06:04.200 of lower costs affordable EV platforms. There is in second point, 0:06:04.240 --> 0:06:08.000 which is an absolute focus on AI and autonomous driving 0:06:08.040 --> 0:06:09.760 and must spell that out for Wall Street. 0:06:09.800 --> 0:06:11.360 And the third point is. 0:06:11.320 --> 0:06:15.839 That the first quarter was absolutely disastrous and investors are 0:06:15.880 --> 0:06:19.200 completely looking past it. Bloomberg's Dana Hole has been all 0:06:19.240 --> 0:06:21.760 over the Tesla story for seven days straight and she 0:06:21.880 --> 0:06:24.480 joins us, Now, let's start with what I think the 0:06:24.520 --> 0:06:29.040 market zeroed in on Dana, which is, affordable evs are 0:06:29.080 --> 0:06:32.000 coming sooner than we expected and not in the form 0:06:32.040 --> 0:06:32.920 that we expected. 0:06:34.720 --> 0:06:37.800 Yeah, that was the big surprise, And there were sort 0:06:37.839 --> 0:06:39.880 of two things. The shareholder decks said that they were 0:06:39.920 --> 0:06:43.480 accelerating their more affordable plans, and then on the call itself, 0:06:43.640 --> 0:06:45.960 Musk was very bullish and said, well, we might even 0:06:46.000 --> 0:06:48.679 see these more affordable models by the end of this year. 0:06:49.160 --> 0:06:52.240 So that was a very big positive for investors that 0:06:52.279 --> 0:06:55.839 have been worried that Tesla's slumping sales are because they 0:06:55.920 --> 0:06:59.400 don't have a cheaper EV and you know, the market 0:06:59.440 --> 0:07:01.400 is always very forward looking. I mean, there was a 0:07:01.400 --> 0:07:03.760 lot of negative sentiment going into this call. I think 0:07:03.800 --> 0:07:06.600 there's a sense now that maybe the shairs have hit 0:07:06.640 --> 0:07:11.600 the bottom. And Musk has been Tesla's CEO since two 0:07:11.600 --> 0:07:14.960 thousand and eight. He has been on every single earnings 0:07:14.960 --> 0:07:17.240 call that this company he's had, except for one he 0:07:17.320 --> 0:07:20.800 understands Wall Street psychology and he like pulled a rabbit 0:07:20.840 --> 0:07:22.600 out of a hat and has them focused on the 0:07:22.600 --> 0:07:23.160 bright future. 0:07:23.200 --> 0:07:27.040 Yet again, yeah, not as bad as fed Dana. Can 0:07:27.080 --> 0:07:30.920 you just outline how they accomplished there? For what questions 0:07:30.920 --> 0:07:34.600 did he answer? What transparency did we get on this 0:07:34.720 --> 0:07:39.160 new platform meets current method of manufacturing to create suddenly 0:07:39.160 --> 0:07:40.000 a cheap of vehicle. 0:07:40.760 --> 0:07:43.000 Well, to be clear that, I mean, the earnings print 0:07:43.040 --> 0:07:46.560 was terrible, but he he kind of focused it on, 0:07:46.880 --> 0:07:49.640 you know, on the future and and basically kind of 0:07:49.720 --> 0:07:53.080 knocked down this Reuter's story which had said that there 0:07:53.160 --> 0:07:55.680 is no more affordable car, that the more affordable. 0:07:55.200 --> 0:07:56.400 Car is completely dead. 0:07:56.720 --> 0:07:58.960 Tesla is now basically saying that they have been working 0:07:59.000 --> 0:08:02.200 all along on bringing more affordable cars to market and 0:08:02.680 --> 0:08:04.960 we're going to learn more about that on August eighth. 0:08:05.080 --> 0:08:06.360 So that was a little bit that was still a 0:08:06.360 --> 0:08:07.440 little bit murky. 0:08:07.200 --> 0:08:09.880 But I think the reason why the stock is reacting 0:08:09.920 --> 0:08:13.000 so positively is that he gave people hope that there 0:08:13.080 --> 0:08:16.160 is going to be more affordable models. But also he 0:08:16.320 --> 0:08:18.800 is just incredibly bullish on autonomy and he has been 0:08:18.800 --> 0:08:19.640 for quite some time. 0:08:19.720 --> 0:08:21.680 But the way in. 0:08:21.600 --> 0:08:24.280 Which he spoke, the confidence with which he spoke, and 0:08:24.600 --> 0:08:26.440 you know, he was basically saying, if you don't believe 0:08:26.480 --> 0:08:29.480 that we can solve this autonomous problem, you shouldn't be 0:08:29.520 --> 0:08:32.600 an investor in the spot in the stock was just 0:08:32.679 --> 0:08:35.120 kind of an indication as to how confident he is 0:08:35.360 --> 0:08:37.559 in the technology that Tesla has been working on for 0:08:37.600 --> 0:08:38.320 over a decade. 0:08:38.360 --> 0:08:41.560 Now, let's show a bit of what Musk had to 0:08:41.600 --> 0:08:44.679 say about autonomy. You're exactly right. He spelled it out 0:08:44.720 --> 0:08:47.839 for Wall Street in no uncertain terms. This is the plan, 0:08:48.200 --> 0:08:52.240 it's AI, and it's autonomous driving, Donna. We did get 0:08:52.280 --> 0:08:55.119 some specifics, though, I think that we're trying to understand 0:08:55.160 --> 0:08:58.160 if we got clarity or any new information in the 0:08:58.600 --> 0:09:02.839 shareholder deck has built robotaxi and then on the call 0:09:03.320 --> 0:09:07.200 an explanation of how a robotaxi service would work. What 0:09:07.360 --> 0:09:08.000 did you learn? 0:09:09.480 --> 0:09:11.080 Yeah, I mean, I think the big takeaway is like 0:09:11.280 --> 0:09:14.000 Tesla is coming for Uber. I mean, and they're they're 0:09:14.160 --> 0:09:17.000 they're you know, they're Robotaxi, which must also called the 0:09:17.080 --> 0:09:22.760 cyber cab, is like this combination Waymo slash Uber service 0:09:23.720 --> 0:09:26.000 that will be fully electric and fully autonomous, and I 0:09:26.000 --> 0:09:28.240 mean there's been some question as to how does this 0:09:28.360 --> 0:09:30.800 like fit with the clean Energy mission. It does in 0:09:30.840 --> 0:09:34.080 that if you can utilize vehicles to be their most 0:09:34.080 --> 0:09:37.360 efficient and if the miles that are traveled are electric, 0:09:37.960 --> 0:09:41.240 then you are diverting a large amount of carbon from 0:09:41.280 --> 0:09:44.400 the atmosphere. And so you know, this is this has 0:09:44.440 --> 0:09:46.280 been kind of part of the plan ever since master 0:09:46.360 --> 0:09:49.560 Plan twenty sixty a master Plan Part two in twenty sixteen. 0:09:49.600 --> 0:09:52.240 But the shareholder deck actually shows like the Tesla app 0:09:52.760 --> 0:09:55.840 and I mean they're very much talking about a service 0:09:56.040 --> 0:09:58.320 that sounds like it's going to come sooner rather than later. 0:09:59.320 --> 0:10:04.160 Dnaho phenomenal reporting across the earnings with the podcast going 0:10:04.200 --> 0:10:07.439 deep into really well the focus of email it is 0:10:07.559 --> 0:10:11.400 your good, you mustpeak, take a rest. 0:10:11.440 --> 0:10:13.880 We thank you so much. Let's go now. From an 0:10:13.920 --> 0:10:15.800 investor perspective, look, is this. 0:10:15.800 --> 0:10:18.280 A time to be plowing into Tesla stocks? Certainly the 0:10:18.280 --> 0:10:20.040 market seems to be on the day Nazi Tangla's with 0:10:20.080 --> 0:10:23.280 our CEO CIO of Laffatanga Investments in the house in 0:10:23.320 --> 0:10:23.760 New York. 0:10:23.880 --> 0:10:25.920 Thank you for joining us. Thank you, Caroline. 0:10:26.080 --> 0:10:30.880 Is this reaction right, this increase in Tesla shares on 0:10:30.920 --> 0:10:31.840 the day when. 0:10:32.000 --> 0:10:34.040 Ultimately the court had just gone was ugly. 0:10:34.400 --> 0:10:37.000 Yeah, yeah, well, I agree with Dana. 0:10:37.440 --> 0:10:38.400 Sorry for my voice. 0:10:38.720 --> 0:10:42.480 All good, We'll give you a moment to clear it. 0:10:43.720 --> 0:10:46.960 Elon gave investors what they wanted to hear. He's excellent 0:10:46.960 --> 0:10:50.600 at that, like any good founding CEO. But if you 0:10:50.720 --> 0:10:53.240 look under the hood and you have a long term perspective, 0:10:53.720 --> 0:10:55.280 we think this is a time when you want to 0:10:55.320 --> 0:10:58.200 add to the name, and we've been doing that. It's 0:10:58.280 --> 0:11:01.640 not just the autonomous drive, which by the way, they 0:11:01.640 --> 0:11:06.840 have three hundred billion miles driven in their their models, 0:11:06.920 --> 0:11:11.199 but also it's based on the megapack and the megapack 0:11:11.800 --> 0:11:15.040 is growing at fifty percent a year. It's the most 0:11:15.040 --> 0:11:18.319 profitable division and we think can be worth more than 0:11:18.360 --> 0:11:21.640 the car business in the future. So and those are 0:11:22.000 --> 0:11:25.960 utility grade batteries. So I think that the company is pivoting. 0:11:26.240 --> 0:11:29.160 He's giving investors what they want to hear, and in 0:11:29.360 --> 0:11:30.640 three to five years is going to be a very 0:11:30.640 --> 0:11:32.800 different looking company. How interesting, because. 0:11:32.559 --> 0:11:35.240 We are indeed going to be digging into the battery 0:11:35.280 --> 0:11:36.960 side of the equation. A little bit later in the 0:11:37.000 --> 0:11:40.120 show for the here and now, how cautiously. Do you 0:11:40.520 --> 0:11:43.480 add to a position like Tesla. How much do you 0:11:43.520 --> 0:11:46.439 see that the dipisorting more? Are you buying day in 0:11:46.559 --> 0:11:49.720 day out? Do you suddenly see a moment where you 0:11:49.760 --> 0:11:52.480 get that headlined? Do you then anticipate what happens in August? 0:11:52.559 --> 0:11:54.360 How do you build up a stake in. 0:11:54.320 --> 0:11:55.480 Tesla for you slowly? 0:11:55.720 --> 0:11:55.960 Yeah? 0:11:56.040 --> 0:11:58.559 Yeah, I don't think you want to chase this stock. Ever, 0:11:59.200 --> 0:12:02.280 it's extraordinary early volatile. We were adding it in January 0:12:02.320 --> 0:12:04.520 of last year at one hundred and four dollars a share. 0:12:04.760 --> 0:12:06.880 It went up to two forty or two twenty. We 0:12:06.960 --> 0:12:09.640 sold some and we bought some back a little too early. 0:12:10.040 --> 0:12:12.240 But I think what you want to look for is 0:12:12.480 --> 0:12:17.000 I mean, you know, for most of us ROBOTAXI sound crazy. 0:12:17.400 --> 0:12:19.440 I commute a third of a mile every day and 0:12:20.360 --> 0:12:22.400 coming and going. I see away monk, because I live 0:12:22.440 --> 0:12:26.040 in Scottsdale every single day. You can't go anywhere without 0:12:26.080 --> 0:12:29.480 seeing their ubiquitous and so being second to that market 0:12:29.960 --> 0:12:32.920 is not a bad thing. And I think I think 0:12:32.960 --> 0:12:37.679 Elon and the company has really been focused on improving 0:12:37.720 --> 0:12:41.480 that software and FSD software is pretty slick, and about 0:12:41.520 --> 0:12:44.520 fifty percent of Tesla drivers use it so the you know, 0:12:44.559 --> 0:12:47.440 the adoption rate will increase and the rest of us 0:12:47.480 --> 0:12:49.640 will come to the party at some point. 0:12:50.280 --> 0:12:52.640 And Nancy, good morning, it is great to see you. 0:12:52.679 --> 0:12:54.360 I want to I want to scratch a bit deeper 0:12:54.360 --> 0:12:58.400 at that, because it is it is completely black and 0:12:58.440 --> 0:13:02.760 white for a Musk couldn't be more clear to investors. 0:13:02.800 --> 0:13:05.560 If you do not believe in the autonomous driving vision, 0:13:06.200 --> 0:13:09.920 don't be an investor. But what's interesting, I guess you know, 0:13:10.000 --> 0:13:14.040 for institutional professional investors like you, so many had an 0:13:14.040 --> 0:13:18.120 affordable ev at the heart of their ball thesis. Musk 0:13:18.240 --> 0:13:20.800 is basically saying, no, have autonomy at the heart of 0:13:20.840 --> 0:13:24.200 your ball thesis. What's at the heart of your thesis 0:13:24.200 --> 0:13:24.760 with Tesla. 0:13:25.640 --> 0:13:28.160 Yeah, a good point ed And you know, coming from 0:13:28.200 --> 0:13:30.560 San Francisco as you do, you probably don't see the 0:13:30.720 --> 0:13:33.720 volume of self driving cars that we see, but it's 0:13:33.720 --> 0:13:36.720 in our face every day in Arizona. So I think 0:13:36.760 --> 0:13:40.520 it's an important component of growth. Some say it's sixty 0:13:40.559 --> 0:13:43.560 percent of their number. What we're really focused on is 0:13:43.600 --> 0:13:46.840 the vertical integration of the company, the vertical integration of 0:13:46.880 --> 0:13:48.960 the megapac. I went to the factory. I think I 0:13:49.040 --> 0:13:52.239 shared that with you not too long ago. It's compelling 0:13:52.720 --> 0:13:55.240 and I think as we you know, as we sort 0:13:55.280 --> 0:13:59.959 of grapple with green and renewables, you've got to have 0:14:00.120 --> 0:14:03.199 a way to store that. And Tesla is the industry leader, 0:14:03.240 --> 0:14:05.920 the low cost provider. So that's at the heart of 0:14:05.960 --> 0:14:08.480 our thesis. But we know that it's a story stock 0:14:08.760 --> 0:14:11.360 and you need EVS to come along and you need 0:14:11.440 --> 0:14:15.520 him to be correct on robo. But let's also stipulate 0:14:15.960 --> 0:14:20.600 he's never met his deadlines. He's directionally correct, but he's 0:14:20.680 --> 0:14:22.360 not on time. 0:14:24.200 --> 0:14:27.640 Nancy Tangler's CEO and CIO Lappitanger Investments, couldn't think of 0:14:27.680 --> 0:14:29.600 a better person speak to you this morning. 0:14:29.640 --> 0:14:29.960 Thank you. 0:14:30.160 --> 0:14:33.800 Now, coming up the UK increases scrutiny of AI investments 0:14:33.800 --> 0:14:37.400 from Microsoft and Amazon and their impact on competition. Bring 0:14:37.400 --> 0:14:52.640 you the reporting next, This is Bloomberg Now. 0:14:52.640 --> 0:14:56.160 The UK's antitrust watchdog, the CMA, is gathering information to 0:14:56.200 --> 0:14:59.680 determine whether the four billion dollar collaboration between Amazon and 0:14:59.720 --> 0:15:02.320 the A for amanthropic but that threatens competition in the 0:15:02.400 --> 0:15:05.000 United Kingdom, and also said it was looking at Microsofts 0:15:05.000 --> 0:15:08.200 partnership in mistral and with inflection AI with us. Some 0:15:08.280 --> 0:15:11.800 more Luma's Catherine and Gamel, and the CMA is not holding. 0:15:11.520 --> 0:15:11.920 Back on this. 0:15:11.960 --> 0:15:14.880 They're worried about this interconnected web. Spit it out for us. 0:15:16.120 --> 0:15:18.480 Yes, So last week the CMA said it was worried 0:15:18.480 --> 0:15:21.560 about these interconnected waves of partnerships and investments into AI 0:15:21.600 --> 0:15:23.680 companies by the big tech firms. 0:15:24.000 --> 0:15:25.040 They're worried that. 0:15:24.960 --> 0:15:27.480 You know, the big tech companies are using these as 0:15:27.560 --> 0:15:32.280 covert merger opportunities to you know, really have influence over 0:15:32.320 --> 0:15:35.520 this emerging technology and companies. So today, off the back 0:15:35.560 --> 0:15:37.880 of that, they've opened three new probes and this adds 0:15:37.920 --> 0:15:40.480 to the probe that was already in the works of 0:15:40.600 --> 0:15:42.400 Microsoft's investment into open Ai. 0:15:44.520 --> 0:15:48.080 Catherine very quickly. If the CMA moves forward, what are 0:15:48.080 --> 0:15:48.960 the repercussions. 0:15:50.440 --> 0:15:52.920 Yes, so right now it's just an invitation to comment stage, 0:15:53.320 --> 0:15:55.440 and if they find out that this is a merger 0:15:55.520 --> 0:15:57.440 under their different terms, then it will go to a 0:15:57.520 --> 0:15:58.040 phase one. 0:15:58.560 --> 0:15:59.960 So that'd be the first stage of the probe. 0:16:00.160 --> 0:16:02.200 You know what, then seems it's more sedious and there's 0:16:02.240 --> 0:16:04.400 going to be substantial listening competition, it can go to 0:16:04.400 --> 0:16:07.000 a phase two probe and then obviously at that point 0:16:07.640 --> 0:16:09.440 in marriage of probes in the UK. You know, they 0:16:09.440 --> 0:16:12.000 can ask for divestments of certain things, or they can 0:16:12.040 --> 0:16:14.400 block them altogether and tell them to unwind it. So, 0:16:14.720 --> 0:16:16.600 I mean there's lots of different scenarios, but right now 0:16:16.600 --> 0:16:18.080 it's very much in the early stages. 0:16:18.880 --> 0:16:22.120 Bloombergs Catherine Gemo out of London. Great reporting, Thank you. 0:16:22.160 --> 0:16:24.680 Coming up on the show, more on tech earnings with 0:16:24.760 --> 0:16:27.480 Dan Newman of the Future and Group. Big conversation coming 0:16:27.560 --> 0:16:30.440 up from San Francisco and New York City. This is 0:16:30.480 --> 0:16:47.840 Bloomberg Technology. Welcome back to Bloomberg Technology. Ed Ludlow in 0:16:47.880 --> 0:16:48.600 San Francisco. 0:16:48.760 --> 0:16:50.360 I'm Caroline Hired in New York and let's get a 0:16:50.440 --> 0:16:53.040 quick check on these markets, because well we are thick 0:16:53.080 --> 0:16:55.280 and fast in earning season. We're also still trying to 0:16:55.320 --> 0:16:58.320 digest some big bond market action. Big sales of five 0:16:58.360 --> 0:17:00.640 year coming today after two year auction. Yes, then as 0:17:00.680 --> 0:17:03.040 that one hundred managing to push above that three tenths 0:17:03.040 --> 0:17:05.119 of a percent, and the moments are holding onto gains. 0:17:05.160 --> 0:17:07.240 More broadly, as big tech wins out Teslo, we dug 0:17:07.280 --> 0:17:10.159 into interesting moves with the Japanese yen basically weakening to 0:17:10.280 --> 0:17:13.080 levels we haven't seen in two three decades, and we're 0:17:13.119 --> 0:17:15.679 expecting maybe some intervention as we break through this one 0:17:15.800 --> 0:17:17.480 five to five levels. So keep an eye on dollar 0:17:17.520 --> 0:17:21.840 strength further versus Japanese yen. Bitcoin down versus the US 0:17:21.960 --> 0:17:24.479 dollar today we're off by two point four percent, so 0:17:24.520 --> 0:17:26.959 there is still some anxiety and risk assets more broadly, 0:17:27.359 --> 0:17:29.560 move on, have a little look at what's happening in 0:17:29.640 --> 0:17:32.840 terms of individual moves on the tech landscape now not 0:17:33.040 --> 0:17:35.080 totally tech, but a lot to do with tech is Boeing, 0:17:35.200 --> 0:17:37.000 and this is interesting as we suddenly take a leg 0:17:37.080 --> 0:17:39.399 lower into the red. It had been flying high more 0:17:39.440 --> 0:17:41.880 than four percent after earnings came in better than expected. 0:17:41.880 --> 0:17:44.200 But then that headline, crucial headline, the seven eight to 0:17:44.240 --> 0:17:46.639 seven is going to be produced on just five jets 0:17:46.640 --> 0:17:47.080 per month. 0:17:47.320 --> 0:17:48.440 That's a worry to investors. 0:17:48.480 --> 0:17:51.600 Right now, Tesla just soaring up eleven percent after of 0:17:51.640 --> 0:17:55.280 course awful first quarter in terms of revenue and profitability, 0:17:55.440 --> 0:17:58.440 but pointing towards yet still a focus on those cheaper, 0:17:58.520 --> 0:17:59.480 more affordable cars. 0:17:59.520 --> 0:18:00.920 I'm looking at Texas instruments. 0:18:00.920 --> 0:18:03.560 This is why we're seeing the socks generally, the benchmark 0:18:03.600 --> 0:18:06.760 of Chips sucks all higher today, ups more than six 0:18:06.800 --> 0:18:09.560 percent really some optimism coming after the bell yesterday with 0:18:09.600 --> 0:18:11.560 its earnings spread across IBM. 0:18:12.000 --> 0:18:13.959 Maybe there's a deal going on with IBM. 0:18:14.000 --> 0:18:16.320 They're looking at hash you call, that's what's being currently 0:18:16.640 --> 0:18:18.880 dibated by the market. We'll get more on earnings after 0:18:18.920 --> 0:18:20.560 the well from IBM, and let's dig into some of 0:18:20.560 --> 0:18:21.120 those earnings. 0:18:21.200 --> 0:18:23.720 Yeah, there's a lot of names. IBM is a key 0:18:23.720 --> 0:18:26.720 one after the bell. Meta is one that is absolutely 0:18:26.800 --> 0:18:28.639 huge and we haven't touched on yet. Let's get to 0:18:28.680 --> 0:18:30.959 the what to expect and bring in the future. From 0:18:31.000 --> 0:18:34.240 group CEO Dan Newman, I think let's start with Meta 0:18:34.280 --> 0:18:38.359 because everyone's talking about Meta in the AI context, huge 0:18:38.440 --> 0:18:42.320 run up in market cap, It is completely outperforming its 0:18:42.359 --> 0:18:46.760 social media peers because of AI. What are your expectations 0:18:46.760 --> 0:18:47.240 for the name? 0:18:48.640 --> 0:18:50.159 Yeah, first of all, good to see you both ed 0:18:50.320 --> 0:18:53.960 in Carolina. It's always good to join the show. Meta 0:18:54.160 --> 0:18:56.800 has been on an incredible run and what it's recently 0:18:56.840 --> 0:18:59.760 been able to do both in the open source community 0:18:59.760 --> 0:19:01.880 with the new Lama models and of course being able 0:19:01.880 --> 0:19:05.080 to build on those models and apply them to their technology, 0:19:05.119 --> 0:19:06.600 has been nothing short of astounding. 0:19:07.040 --> 0:19:08.440 You know, last year it was all about. 0:19:08.280 --> 0:19:11.920 The company getting operationally in line, they made the cuts 0:19:11.920 --> 0:19:14.000 they had to make, they started growing. The market in 0:19:14.040 --> 0:19:16.840 the street really reacted well. Now it's can they continue 0:19:16.840 --> 0:19:18.960 that growth on a year over year basis, And they've 0:19:18.960 --> 0:19:22.359 had several continuous quarters of really great growth. But I 0:19:22.359 --> 0:19:24.680