WEBVTT - Trump Says TikTok Buyer Group Found 0:00:02.520 --> 0:00:13.080 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is a 0:00:13.119 --> 0:00:16.880 live from Coast to Coast with Caroline Hyde in New 0:00:16.960 --> 0:00:19.480 York and Vla Lowe in San Francisco. 0:00:22.960 --> 0:00:25.880 This is Bloomberg Tech coming up. President Trump says he 0:00:25.960 --> 0:00:30.120 has identified a buyer for the US operations of TikTok. 0:00:30.840 --> 0:00:34.120 Plus Canada withdraws its digital services tax that could have 0:00:34.200 --> 0:00:36.080 cost Big Tech billions in a. 0:00:36.000 --> 0:00:37.639 Move to restart trade talks for the. 0:00:37.680 --> 0:00:41.519 US and Apple's Hollywood Bett takes the lead with f 0:00:41.600 --> 0:00:45.199 one movie taking in fifty five point six million dollars 0:00:45.400 --> 0:00:47.320 in the US and Canadian box office. 0:00:48.520 --> 0:00:50.640 There's a lot going on ed that also might be 0:00:50.640 --> 0:00:53.560 involving Oracle in the future. President Trump says that they 0:00:53.680 --> 0:00:57.920 have a buyer for TikTok's US operations, but he stopped 0:00:57.960 --> 0:01:01.400 short of naming the bidder, saying on other networks that 0:01:01.440 --> 0:01:04.720 the transaction would need China approval. For more bluebags, Mike 0:01:04.800 --> 0:01:07.759 Shepherd joins us for more and there is an articulation 0:01:07.920 --> 0:01:09.920 that we've got a buyer. But the big if is 0:01:10.080 --> 0:01:11.760 what China does with this information. 0:01:12.959 --> 0:01:15.319 Well, that's right, Caro, China has a huge stake in this, 0:01:15.400 --> 0:01:17.720 and they really will have the final say, given that 0:01:17.840 --> 0:01:22.119 byte Dance, the parent of TikTok is based in Beijing 0:01:22.240 --> 0:01:26.160 and also happens to oversee some of what the Chinese 0:01:26.160 --> 0:01:30.600 government would consider sensitive technology, the kind that would need 0:01:30.720 --> 0:01:34.480 government approval to engineer any kind of final sale, even 0:01:34.640 --> 0:01:37.959 if the company were to retain control over the algorithm. 0:01:38.040 --> 0:01:42.160 Our reporting back in April indicated that the deal that 0:01:42.200 --> 0:01:44.920 had been taking shape at the White House, involving Byte Dance, 0:01:45.319 --> 0:01:49.200 TikTok Us officials, and a number of prospective buyers in 0:01:49.240 --> 0:01:53.200 this consortium, it would have left the algorithm in China's hands. 0:01:53.240 --> 0:01:57.800 But even with that, with trade tension surging between Washington 0:01:57.840 --> 0:02:01.200 and Beijing, it became two difficult to get this deal 0:02:01.640 --> 0:02:04.120 further along to get Beijing's approval. 0:02:03.720 --> 0:02:06.640 At the time, Mike, we're currently in this kind of 0:02:06.680 --> 0:02:10.000 extension period, the latest extension to get a deal done. 0:02:10.320 --> 0:02:13.280 So that's where it stands. But what's our sense of 0:02:13.320 --> 0:02:17.200 who that this mysterious victorious bidda might be. 0:02:18.800 --> 0:02:22.520 Well, it really is appearing to be based on some 0:02:22.560 --> 0:02:25.160 reporting this morning, that we're getting in and it all 0:02:25.200 --> 0:02:27.800 still taking shape. But our sense is that it is 0:02:27.919 --> 0:02:31.120 essentially the same consortium that had been working on that 0:02:31.160 --> 0:02:34.200 we had reported on back in April. And this includes 0:02:34.240 --> 0:02:36.920 Oracle Corp, which already does quite a bit of back 0:02:37.000 --> 0:02:40.560 end business for TikTok here in the US through Project Texas. 0:02:41.160 --> 0:02:43.840 And then it would also include venture capital firm and 0:02:43.919 --> 0:02:48.240 recent Horowitz and Blackstone and some other investors in byte Dance, 0:02:48.280 --> 0:02:51.600 the US based investors in byte Dance perhaps, and the 0:02:51.680 --> 0:02:55.760 idea would be to dilute Byteedance's steak in the US 0:02:56.000 --> 0:03:00.600 operations of TikTok down below a threshold that is specified 0:03:00.720 --> 0:03:03.080 in the twenty twenty four law that calls for it 0:03:03.120 --> 0:03:07.600 to be divested from Chinese ownership and also include the 0:03:07.680 --> 0:03:10.480 algorithm in the sale. And that algorithm ed is going 0:03:10.520 --> 0:03:13.400 to be what could emerge as a sticking point at 0:03:13.520 --> 0:03:16.440 least here in Washington if it is not transferred from 0:03:16.520 --> 0:03:19.040 Chinese control. That could be grounds for at least some 0:03:19.120 --> 0:03:22.519 objections at least in Congress. It's unclear though, whether those 0:03:22.560 --> 0:03:26.640 will materialize into anything significant enough to either halt the 0:03:26.680 --> 0:03:29.720 deal or force a shutdown as the law would specify. 0:03:30.080 --> 0:03:32.359 As you said, we do have more time to think 0:03:32.360 --> 0:03:36.040 about this. The President just signed an extension from June nineteenth, 0:03:36.120 --> 0:03:39.600 and that'll carry US into September. The other thing that 0:03:39.680 --> 0:03:42.480 Wall specified, though, Ed, is you'll recall there was only 0:03:42.520 --> 0:03:45.720 one extension allowed by the President and he's already on 0:03:45.840 --> 0:03:48.360 number three, so it's unclear how much further he'll be 0:03:48.400 --> 0:03:49.160 able to take. 0:03:49.000 --> 0:03:52.440 This head in both Michael Sheppard out of Washington, d C. 0:03:52.960 --> 0:03:54.600 Thank you very much. Let's talk a little bit more 0:03:54.600 --> 0:03:58.000 broadly about tech markets. Angelou Coull Covers Edward Join Senior 0:03:58.000 --> 0:04:01.240 Investment Strategies joins us now, saying that Caroline was talking 0:04:01.280 --> 0:04:03.560 about at the top of the show, believe it or not, 0:04:03.800 --> 0:04:06.720 it's the last day of the second quarter. We already 0:04:06.840 --> 0:04:09.080 arrived to the second half of what has been an 0:04:09.160 --> 0:04:13.000 intense year in the technology sector. The Nasdaq one hundred 0:04:13.080 --> 0:04:15.560 is like modestly higher right now in the session, but 0:04:15.640 --> 0:04:19.479 we continue to push consecutive record highs. What is the 0:04:19.560 --> 0:04:21.400 single catalyst for tech right now? 0:04:21.560 --> 0:04:25.640 Angelo, Yeah, as you said, certainly a lot has happened 0:04:25.680 --> 0:04:28.120 in the first half of the year, and maybe the 0:04:28.200 --> 0:04:30.480 fact that we are hitting all time highs, we see 0:04:30.520 --> 0:04:34.200 that as a validation of the positive momentum, not an 0:04:34.360 --> 0:04:38.480 indication or a signal of an imminet correction. Certainly, the 0:04:38.960 --> 0:04:43.320 decline the the risking in geopolitical trade tensions and the 0:04:43.360 --> 0:04:46.440 other tensions has helped. But at the same time, really 0:04:46.440 --> 0:04:50.599 what is undisputed is the strength in corporate profits, especially 0:04:50.680 --> 0:04:53.640 within tech. We are hitting all time highs, but it 0:04:53.680 --> 0:04:57.440 is the largest companies that are driving this. About six 0:04:57.560 --> 0:05:00.160 percent of the S and P five hundred has been 0:05:00.240 --> 0:05:02.840 hitting new heisers of the last Friday, so it hasn't 0:05:02.920 --> 0:05:05.880 yet been broad but at the same time that shouldn't 0:05:06.560 --> 0:05:09.800 really dilute the methods that we remain. In a bull 0:05:09.839 --> 0:05:13.720 market summer center. This is ahead, but corporate profits is 0:05:13.760 --> 0:05:15.599 what is driving this action. 0:05:17.560 --> 0:05:22.040 Corporate profits that sees growth actually start to accelerate out 0:05:22.080 --> 0:05:25.359 of the US angelo going forward the second half, is 0:05:25.360 --> 0:05:27.800 it going to be US exceptionalism or if we look 0:05:27.839 --> 0:05:31.160 at what Bloomberg Intelligence have just been writing great piece 0:05:31.160 --> 0:05:34.000 of analysis coming out of Gina and her team today 0:05:34.040 --> 0:05:36.960 saying the US is no longer settling the pace for 0:05:37.040 --> 0:05:38.200 global tech earnings. 0:05:38.200 --> 0:05:40.039 In fact that's going to Asia and Europe. What do 0:05:40.040 --> 0:05:40.560 you make of it? 0:05:42.040 --> 0:05:45.640 What is happening is the growth gap and the growth 0:05:45.680 --> 0:05:48.960 advantage that the US has had is narrowing, especially as 0:05:48.960 --> 0:05:52.479 we think about this year. Europe is accelerating from stagnation, 0:05:53.000 --> 0:05:56.440 while we are deccelerating from a very strong starting point. 0:05:56.760 --> 0:05:58.800 But at the same time, looking at the major in 0:05:58.880 --> 0:06:03.000 this is for international un developed large cup equities. It's 0:06:03.040 --> 0:06:06.400 been an erring of the gap invaluations, which still remains 0:06:06.400 --> 0:06:11.000 in large rather than an earnings story. So if we 0:06:11.320 --> 0:06:14.839 see some stabilization in the US dollar in the second half, 0:06:15.279 --> 0:06:19.320 based on the earnings still outperformance from US equities, we 0:06:19.320 --> 0:06:24.279 would expect potentially US tech and US assets more broadly 0:06:24.360 --> 0:06:25.839 to come back into favor. 0:06:27.560 --> 0:06:31.200 Okay, any area in particular, we've been all about hardware 0:06:31.279 --> 0:06:32.360 for the last couple of years. 0:06:32.360 --> 0:06:33.760 Software got its moment in the sun. 0:06:33.800 --> 0:06:37.279 But I'm interested is the eraror areas in particular that 0:06:37.320 --> 0:06:39.880 you like within the tech ecosystem of the US. 0:06:40.800 --> 0:06:44.039 I think the equal weighted index is also one way 0:06:44.160 --> 0:06:48.239 to go and participate in that likely broadening that is happening. Yes, 0:06:48.279 --> 0:06:52.640 and VIDA and semiconductors remain key at the center of 0:06:53.320 --> 0:06:57.039 the exciting secular tail winds that are ahead. But we 0:06:57.120 --> 0:07:01.120 are seeing last week the equal weighted technology S and 0:07:01.200 --> 0:07:04.400 B make new highs relative to the market, and that 0:07:04.480 --> 0:07:10.600 is an encouraging development. So remain broadly diversified software still 0:07:10.800 --> 0:07:14.920 likely favored, but that is the case for many other sectors, 0:07:14.920 --> 0:07:16.960 and we can talk about that as well well. 0:07:16.960 --> 0:07:18.320 And I kind of want to go back to the 0:07:18.600 --> 0:07:21.600 top news stories of the day, which largely center around trade, 0:07:22.360 --> 0:07:26.040 Canada and digital tax. We have heard and we will 0:07:26.040 --> 0:07:29.520 hear again very shortly from US Treasury Secretary Scott Besson. 0:07:29.960 --> 0:07:31.760 But the reason I bring that up is that in 0:07:31.880 --> 0:07:34.200 summary of the prior quarter, it was really trade that 0:07:34.320 --> 0:07:37.480 was driving us. I asked this difficult question to every 0:07:37.680 --> 0:07:41.080 markets participant that comes on the show, what happens next, 0:07:41.200 --> 0:07:42.200 particularly in tech. 0:07:44.600 --> 0:07:46.640 Yeah, trade that in the near term is still going 0:07:46.720 --> 0:07:49.920 to be front and center. We have the deadline that 0:07:50.000 --> 0:07:53.240 is coming up to line ninth, but that date it 0:07:53.280 --> 0:07:57.280 has been dereased a little bit. The administration has indicated 0:07:57.360 --> 0:08:02.000 that this could be extended. There's any potential agreements with 0:08:02.160 --> 0:08:05.920 major trading partners underway, and this can be unveiled over 0:08:05.960 --> 0:08:10.720 the coming days. But since the start of the year, 0:08:10.840 --> 0:08:14.400 we are seeing this expected and gradual pyvot towards more 0:08:14.640 --> 0:08:19.640 market friendly policies, tax cuts, regulations. So there could be 0:08:19.760 --> 0:08:25.120 some near term volatility and some potentially less friendly economic 0:08:25.360 --> 0:08:29.360 data that reflect a mindly stagflationary impact, but markets are 0:08:29.360 --> 0:08:31.640 going to be able to look through that as they 0:08:31.680 --> 0:08:33.439 Foction twenty twenty six. 0:08:34.480 --> 0:08:37.840 And going back to the micro to finish, I talked 0:08:37.880 --> 0:08:40.480 about those two deals at the top, Palenteer partnering with 0:08:40.559 --> 0:08:45.320 Accentia sales channel Oracle thirty billion dollars per year cloud client. 0:08:45.960 --> 0:08:48.720 Outside of those just being news stories that drive those 0:08:48.760 --> 0:08:52.079 single names higher, how much do you track those data 0:08:52.120 --> 0:08:55.640 sets for signals of how enduring an AI investment cycle 0:08:55.760 --> 0:08:58.160 is or how real any of this is in the 0:08:58.160 --> 0:08:59.599 AI context. 0:09:00.520 --> 0:09:03.320 These are important and no doubt the cycle of Israel. 0:09:03.440 --> 0:09:07.240 We see that in broader adoption and we see that 0:09:07.280 --> 0:09:10.880 in the results from the companies that are centered in 0:09:10.960 --> 0:09:14.959 this space. As we think about moving further away from 0:09:15.040 --> 0:09:17.800 the trade headwinds, that's going to be an ext major 0:09:17.840 --> 0:09:21.440 step some confidence for more deals to happen, and I 0:09:21.480 --> 0:09:24.240 think that is something that can be supportive of the 0:09:24.280 --> 0:09:26.479 market and the tech space in gener. 0:09:28.040 --> 0:09:30.600 For now, still very much things that we can tend with. 0:09:31.040 --> 0:09:33.319 On the day, Angelo Kukafas, we thank you so much 0:09:33.360 --> 0:09:36.640 of Edward Jones. Coming up those headwinds, we discuss Canada 0:09:36.760 --> 0:09:40.120 actually though withdrawing its digital services tax in order to 0:09:40.200 --> 0:09:42.000 restart US trade talks. 0:09:42.320 --> 0:09:43.800 More on that next peacibly bad tech. 0:09:53.040 --> 0:09:56.560 Republican Party leaders are rushing to overcome infighting in an 0:09:56.559 --> 0:10:01.000 effort to pass President Trump's Big, Beautiful bill, as Democrats 0:10:01.040 --> 0:10:04.360 launch an initiative to exploit those divisions more bloombos. Katie 0:10:04.400 --> 0:10:07.480 Lines joins us. Now, I don't think in my career, 0:10:07.480 --> 0:10:09.839 at least, I'm sure in yours you have tracked as 0:10:09.920 --> 0:10:12.960 closely the passage of the bill, the politics of it, 0:10:13.000 --> 0:10:14.960 and the content of it. What's the latest. 0:10:16.160 --> 0:10:18.439 Well, obviously this is a massive package, and it's been 0:10:18.559 --> 0:10:21.080 very complicated. The so called vote Rama Bean in the 0:10:21.120 --> 0:10:23.720 Senate this morning is expected to go all day into tonight, 0:10:23.760 --> 0:10:26.600 perhaps even into the early hours of tomorrow, as they 0:10:26.679 --> 0:10:29.480 vote on an unlimited number of amendments to this bill, 0:10:29.520 --> 0:10:31.520 including the likes of the one put forward by Senator 0:10:31.559 --> 0:10:33.440 Ron Johnson, who would like to see a phasing out 0:10:33.440 --> 0:10:36.600 of the expansion population of Medicaid under the Affordable Care 0:10:36.640 --> 0:10:38.520 Act of Susan Collins's amendment, but that would give more 0:10:38.559 --> 0:10:41.120 funding to rural hospitals in exchange for raising the tax 0:10:41.200 --> 0:10:43.920 rate on the country's highest earners, and of course Democrats 0:10:43.960 --> 0:10:46.480 are going to put hold a boatload of amendments to 0:10:46.480 --> 0:10:48.360 try to get Republicans on the record with things that 0:10:48.400 --> 0:10:51.320 may be politically unpopular, but all of it is aimed 0:10:51.320 --> 0:10:53.720 at trying to get the requisite votes needed to pass, 0:10:53.840 --> 0:10:56.520 knowing that John fu and the Senate Majority leader can 0:10:56.559 --> 0:10:59.240 only lose three and there's still about eight Republican holdouts 0:10:59.240 --> 0:11:02.160 who have not committed to voting yes on this legislation, 0:11:02.240 --> 0:11:04.960 including Tom Tillis, who said yesterday in a surprise announcement, 0:11:05.000 --> 0:11:06.800 not only would he not be voting for this package, 0:11:06.840 --> 0:11:09.920 but he's actually not seeking reelection in twenty twenty six. 0:11:09.960 --> 0:11:12.080 So the math is difficult, and math is actually one 0:11:12.080 --> 0:11:14.280 of the first things they tackled this morning is they 0:11:14.320 --> 0:11:17.160 voted to adopt the so called current policy baseline, which 0:11:17.240 --> 0:11:21.240 essentially fudges the accounting to say that the tax cuts 0:11:21.280 --> 0:11:23.640 don't cost four and a half trillion dollars in tax cuts, 0:11:23.640 --> 0:11:26.120 about three point eight of them three point eight trillion 0:11:26.160 --> 0:11:29.319 dollars are taken out as current policy because it's extending 0:11:29.520 --> 0:11:32.320 the twenty seventeen tax cuts. It's aimed at lowering the 0:11:32.360 --> 0:11:34.280 price tag, at least on paper, but that still may 0:11:34.320 --> 0:11:38.080 not be enough to appease fiscal conservatives, especially in the House, 0:11:38.120 --> 0:11:41.120 which of course has to revote on this package, assuming 0:11:41.360 --> 0:11:43.520 that it can get through the Senate. So this voter 0:11:43.679 --> 0:11:45.920 rama is really just step one in a number of 0:11:46.000 --> 0:11:46.840 remaining hurdles. 0:11:47.920 --> 0:11:50.800 Well, Katie, there were some maths that was very much 0:11:50.840 --> 0:11:53.760 an obsession of big tag that no longer has to 0:11:53.760 --> 0:11:56.840 be in anxiety. I'm talking about digital services taxes that 0:11:56.840 --> 0:12:01.120 were coming into full today phone Canada on American giants 0:12:01.360 --> 0:12:02.840 and now no more tolk. 0:12:02.640 --> 0:12:03.000 Us to it. 0:12:04.160 --> 0:12:07.440 Yeah. President Trump on Friday threatened Canada essentially saying that 0:12:07.480 --> 0:12:09.440 within a week they would be getting a new tariff 0:12:09.520 --> 0:12:12.560 rate and trade negotiations were going to end entirely over 0:12:12.679 --> 0:12:15.800 this digital services tax, which could cost American companies like 0:12:15.840 --> 0:12:18.679 Meta or Alphabet billions of dollars. Those first payments were 0:12:18.720 --> 0:12:22.000 expected to be due today, and tell Canada basically acquiesced 0:12:22.000 --> 0:12:25.520 to Trump's demands, deciding to rescind that digital services tax 0:12:25.520 --> 0:12:27.920 in the name of restarting trade negotiations, and they're now 0:12:27.920 --> 0:12:30.040 looking at trying to get a trade deal done by 0:12:30.120 --> 0:12:32.040 July twenty first. That of course is a little bit 0:12:32.080 --> 0:12:34.920 later than the deadline. Other countries are working with July ninth. 0:12:35.160 --> 0:12:37.520 Of course, that wider deadline that's coming up very quickly, 0:12:37.520 --> 0:12:40.400 and the digital services taxes for trading partners like the 0:12:40.440 --> 0:12:44.160 European Union for example, are still likely seen as sticking points. 0:12:44.160 --> 0:12:46.440 So while it's still been resolved between the US and 0:12:46.480 --> 0:12:48.520 Canada at least for now, that's something we can expect 0:12:48.520 --> 0:12:51.439 to come up in trade negotiations as they move forward 0:12:51.440 --> 0:12:52.160 in the coming days. 0:12:52.240 --> 0:12:55.760 Elsewhere bloom megs Kayleie lyines, thank you so much. In 0:12:55.920 --> 0:12:59.480 Washington and look US Treasury sectories, Scott Bessen joined Blue 0:12:59.520 --> 0:13:02.800 Meg Shanon just this morning to give some insight into 0:13:02.840 --> 0:13:05.400 current trade talks, saying we should expect a flurry of 0:13:05.440 --> 0:13:05.920 deals soon. 0:13:06.080 --> 0:13:06.600 Take a listen. 0:13:06.720 --> 0:13:09.400 So it's going to be a flurry going into the 0:13:09.440 --> 0:13:11.640 final week as the pressure increases. 0:13:11.760 --> 0:13:13.520 Well, can you tell us about what's coming out of 0:13:13.559 --> 0:13:17.160 those deals? Are they inked deals or are they negotiations 0:13:18.040 --> 0:13:19.080 for future deals? 0:13:19.200 --> 0:13:23.920 Well, what I can tell you is that the staff level, 0:13:23.960 --> 0:13:28.200 whether it's a Treasury at USTR, at commerce, people who've 0:13:28.240 --> 0:13:31.600 been around for twenty years are in amazement and they're 0:13:31.640 --> 0:13:36.959 saying these countries are coming with offers that they can't believe. 0:13:37.360 --> 0:13:41.480 So in terms of bringing down tariffs, non tariff trade barriers. 0:13:42.360 --> 0:13:49.640 We're leaving a side currency, the financing of the labor 0:13:50.240 --> 0:13:55.400 and capital in an advantageous way. All these countries are 0:13:55.400 --> 0:13:56.000 pulling back. 0:13:56.920 --> 0:13:59.680 So you've said that trade negotiations could be wrapped up 0:13:59.679 --> 0:14:04.160 by how should investors and nations impact It'd be thinking 0:14:04.200 --> 0:14:08.640 about that July ninth deadline and could that be pushed 0:14:08.640 --> 0:14:12.079 back to avoid going back to those April second tariff rates. 0:14:12.120 --> 0:14:14.680 Well, that's going to be able to President Trump. And 0:14:15.080 --> 0:14:19.040 I'm not going to tell any country. We have countries 0:14:19.040 --> 0:14:21.720 that are negotiating in good faith, but they should be 0:14:21.720 --> 0:14:25.440 aware that if we can't get across the line because 0:14:25.680 --> 0:14:29.120 they are being with calcitrant, then we could spring back 0:14:29.240 --> 0:14:32.680 to the April second levels. I hope that won't have 0:14:32.800 --> 0:14:33.240 to happen. 0:14:34.760 --> 0:14:37.480 That was US Treasury Secretary Scott Beston. Let's stay on 0:14:37.480 --> 0:14:39.880 the impact of tariffs and bring in Rachel Hoff, policy 0:14:39.920 --> 0:14:42.720 director at the Ronald Reagan Institute, who joins us on 0:14:42.760 --> 0:14:47.640 set here in San Francisco Trade in Tariffs. That the 0:14:47.720 --> 0:14:50.280 policy platform that the administration has explained to us in 0:14:50.320 --> 0:14:53.520 this program through Michael Kratzios is promote and protect in 0:14:53.560 --> 0:14:56.440 the context of the technology sector. But as we learn 0:14:56.480 --> 0:14:59.360 about the content of the deals, we're increasingly talking about 0:14:59.720 --> 0:15:02.440 which camp you're in impact how you feel about it. 0:15:02.480 --> 0:15:05.400 If you're a consumer, you feel one way about tariffs. 0:15:05.400 --> 0:15:08.440 If you're a technology company you may feel differently. What 0:15:08.480 --> 0:15:11.640 does your research tell you about where we will land 0:15:12.080 --> 0:15:14.880 in the sort of public conscience of how impactful these 0:15:14.920 --> 0:15:15.760 trade deals have been. 0:15:16.080 --> 0:15:16.560 Well, we have. 0:15:16.560 --> 0:15:19.120 Research at the Reagan Institute on kind of both of 0:15:19.160 --> 0:15:19.800 those camps. 0:15:19.840 --> 0:15:22.440 We have, particularly in the national. 0:15:22.080 --> 0:15:26.200 Security domain, a tech sector focused project that we have 0:15:26.280 --> 0:15:29.000 our National Security Innovation based program. And then in terms 0:15:29.040 --> 0:15:32.080 of consumers and more broadly the American people, we're just 0:15:33.040 --> 0:15:35.960 out last week with a new survey, a public opinion 0:15:36.000 --> 0:15:38.760 poll asking the American people what they think about a 0:15:38.840 --> 0:15:41.880 range of issues, including trade, in tariffs, and on tariffs 0:15:41.880 --> 0:15:47.080 in particular, Americans are supportive of tariffs on China, but 0:15:47.160 --> 0:15:50.040 not at the expense of higher prices. That that flips 0:15:50.080 --> 0:15:53.280 when you put it up against rising consumer prices. 0:15:54.600 --> 0:15:58.080 What's so interesting in your data and research, Rachel, is 0:15:58.120 --> 0:16:02.240 the anxiety that everyone has around technology theft with China. 0:16:02.400 --> 0:16:04.840 That's the number one concern, right. 0:16:05.640 --> 0:16:08.320 That's right, Americans are concerned about a number of issues 0:16:08.360 --> 0:16:10.800 with regard to China, from their military build up to 0:16:10.880 --> 0:16:15.880 their economic practices to human rights abuses. But your right, Caroline, 0:16:15.920 --> 0:16:19.200 Top on the list of Americans concerns about China is 0:16:19.240 --> 0:16:25.160 technology theft. Shortly behind that is Chinese advancements in AI 0:16:25.280 --> 0:16:28.640 and the prospect that they may actually advance more quickly 0:16:28.680 --> 0:16:31.760 than the US in terms of our artificial intelligence research 0:16:31.800 --> 0:16:34.600 and leadership. So the technology concerns that I know are 0:16:34.640 --> 0:16:37.320 of interest to your audience are really top on the 0:16:37.320 --> 0:16:39.160 mind of the American people as well when it comes 0:16:39.160 --> 0:16:40.000 to Beijing. 0:16:39.960 --> 0:16:43.840 At the global stage. There are many factors and considerations 0:16:43.840 --> 0:16:50.240 for American citizens. What Caroline just says really interesting tech theft, 0:16:50.240 --> 0:16:52.920 but absolutely at the top based on what I'm reading, 0:16:53.000 --> 0:16:56.200 is actually Iran and what's happening in the nuclear context. 0:16:56.320 --> 0:16:56.680 That's right. 0:16:56.720 --> 0:16:59.760 When we ask about geopolitical issues more broadly, from China 0:16:59.800 --> 0:17:03.440 to the war between Russia and Ukraine to tariffs, one 0:17:03.520 --> 0:17:07.280 geopolitical issue stands out above all others that the American 0:17:07.280 --> 0:17:10.560 people think matters to US security and prosperity, and that's 0:17:10.600 --> 0:17:13.280 preventing around from getting a nuclear weapon. Our poll was 0:17:13.720 --> 0:17:17.680 before the recent strikes, but we know that preventing around 0:17:17.680 --> 0:17:21.040 from nuclear from getting a nuclear weapon is of concern 0:17:21.080 --> 0:17:23.439 to eighty four percent of Americans. You don't get to 0:17:23.480 --> 0:17:26.720 eighty four percent without being there on a bipartisan basis. 0:17:26.720 --> 0:17:29.480 A majority of Democrats and a majority of Republicans want 0:17:29.480 --> 0:17:31.760 to prevent ran from getting a nuclear weapon. 0:17:33.119 --> 0:17:37.640 What seems to have been very holistically fold of on 0:17:37.680 --> 0:17:40.359 this show is how we therefore need to innovate when 0:17:40.400 --> 0:17:43.720 it comes to defense tech. Rachel, with this empowered, with 0:17:43.760 --> 0:17:46.080 the data that you bring and the research, what does 0:17:46.119 --> 0:17:47.720 colport in America go and do about it? 0:17:49.640 --> 0:17:52.359 You know, I think that's ultimately ultimately the question. And 0:17:52.800 --> 0:17:56.280 with tariffs, not just you know, not just looking at China, 0:17:56.359 --> 0:17:59.000 but you know, not all tariffs are created equal. Right 0:17:59.040 --> 0:18:02.119 when we look at tariffs on China, this broader conversation 0:18:02.200 --> 0:18:05.720 about strate strategic decoupling of our economies on a national 0:18:05.760 --> 0:18:09.840 security basis, that's different than tariffs on our allies and 0:18:09.920 --> 0:18:15.040 our friends. The American people understand that, and certainly corporate America, 0:18:15.119 --> 0:18:18.399 certainly the US tech sector understands that, and particularly with 0:18:18.440 --> 0:18:21.680 regard to the supply chain challenges that they face if 0:18:21.680 --> 0:18:24.960 we have sustained and long term tariffs against our allies 0:18:24.960 --> 0:18:27.160 and friends. That's going to hurt the American tech sector, 0:18:27.200 --> 0:18:29.440 and it's going to hurt our ability to modernize our 0:18:29.480 --> 0:18:32.399 military and develop the capabilities we need to meet the 0:18:32.480 --> 0:18:34.080 national security threats of tomorrow. 0:18:35.720 --> 0:18:38.280 Well, I'm sure that this sort of data is going 0:18:38.359 --> 0:18:40.119 to be very useful for policy making. You are the 0:18:40.119 --> 0:18:42.520 policy director at the Ronald Reagan Institute. We appreciate the 0:18:42.560 --> 0:18:44.879 time and the insights. Rachel Hope, thanks for joining. 0:18:45.280 --> 0:18:45.440 Now. 0:18:45.480 --> 0:18:48.399 Coming up, let's talk more about geopolitics Israel in Iran's 0:18:48.400 --> 0:18:51.520 recent will revealed a key risk for global shipping. Well 0:18:51.520 --> 0:18:54.720 on that next. In today's Big Take, This is Tech. 0:19:09.640 --> 0:19:13.399 The Iran Israel war highlighted critical flaws among the world's 0:19:13.400 --> 0:19:16.600 shipping giants, with many of the satellite navigation systems among 0:19:16.640 --> 0:19:20.160 ships and tankers being vulnerable to mass jamming as. 0:19:20.080 --> 0:19:21.520 They traversed vital waterways. 0:19:21.640 --> 0:19:24.200 Bloomberg's Jack Westles joins us now for more on today's 0:19:24.200 --> 0:19:24.640 Big Take. 0:19:25.000 --> 0:19:25.960 Jack set the scene. 0:19:26.240 --> 0:19:32.480 How integral is this sort of technology to shipping writ large. 0:19:32.000 --> 0:19:37.960 So shits do use satellite navigation systems to navigate nowadays. 0:19:38.720 --> 0:19:41.000 One of the most common ones is GPS. There's also 0:19:41.200 --> 0:19:43.720 Russian ones, it's called glonas and a couple of other 0:19:43.720 --> 0:19:46.480 ones as well. So it's really integral to how the 0:19:46.520 --> 0:19:49.320 shipping industry operates. And don't forget that the shipping industry 0:19:49.840 --> 0:19:52.960 is responsible for transporting more than eighty percent of world trade. 0:19:54.280 --> 0:19:57.960 Jack, I spent all morning reading and learning about jamming 0:19:58.440 --> 0:20:03.359 and spoofing. Explain the basic definitions and the data analysis 0:20:03.400 --> 0:20:06.199 you did on how that's happening and playing out in 0:20:06.280 --> 0:20:06.840 that region. 0:20:08.280 --> 0:20:10.399 Yeah, that's a great question because they're not quite the 0:20:10.440 --> 0:20:13.239 same thing. So jamming is essentially where so these are 0:20:13.280 --> 0:20:17.919 satellite navigation systems, so the ships are receiving signals. So 0:20:18.040 --> 0:20:21.240 jamming is when these signals are essentially overwhelmed, like imagine 0:20:21.240 --> 0:20:25.000 someone just shouting really loudly over the signal. Whereas, and 0:20:25.200 --> 0:20:28.919 you know, the ship system essentially gets confused. Whereas spoofing 0:20:29.240 --> 0:20:32.920 is when a fake signal is specifically fed to the ship, 0:20:33.000 --> 0:20:36.520 and that can be more insidious. You could really get 0:20:36.560 --> 0:20:39.240 a ship and slowly lure it off its path by 0:20:39.520 --> 0:20:43.000 feeding it a fake signal and potentially leading it into trouble. 0:20:44.440 --> 0:20:47.760 And where is the sort of trouble arising tend to 0:20:47.800 --> 0:20:49.400 be in the straight of wall moves is it more 0:20:49.440 --> 0:20:49.919 broad than that. 0:20:51.640 --> 0:20:54.040 Yeah, so we looked at a few hot spots. So yes, 0:20:54.240 --> 0:20:56.480 there's been lots in the Persian Gulf and the straight 0:20:56.520 --> 0:20:59.160 up wall Moos. Other hot spots include the Red Sea, 0:20:59.520 --> 0:21:04.520 the Black See, the Baltic Sea. Especially, there's a hotspot 0:21:04.600 --> 0:21:07.760 near Primorsk, which is a big oil terminal for Russia. 0:21:07.840 --> 0:21:10.720 So you notice that these are regions of geopolitical tension. 0:21:10.720 --> 0:21:13.359 You know, you've obviously got recent attacks by who Thi's 0:21:13.400 --> 0:21:16.240 in the Red Sea. You've obviously had Iran Israel in 0:21:16.280 --> 0:21:20.800 the Persian Gulf, and Russia's oil exports always subject to 0:21:21.880 --> 0:21:24.200 lots of sanctions. And you've obviously got the Russia Ukraine 0:21:24.200 --> 0:21:24.720 War as well. 0:21:26.000 --> 0:21:29.120 Bloombos Jack whistles with today's big take, Thank you very much. 0:21:29.160 --> 0:21:31.720 Now coming up, we'll dig into how the Supreme Court's 0:21:31.760 --> 0:21:35.840 ruling on birthright citizenship and other Trump immigration policies are 0:21:35.880 --> 0:21:39.199 impacting a key component of the tech workforce, that is 0:21:39.240 --> 0:21:42.200 the H one B visa holders. Really critical conversation for 0:21:42.280 --> 0:21:45.640 our audience coming up here next. This is Bloomberg Tech. 0:21:52.240 --> 0:21:55.200 Welcome back to Bloomberg Tech. Welcome to the final day 0:21:55.240 --> 0:21:57.639