WEBVTT - Bitcoin's Big Surge, Tech Takes on Geopolitics 0:00:01.639 --> 0:00:06.920 From Mahart where Innovation, Money and power Collie in Silicon Valley, Nbonn. 0:00:07.280 --> 0:00:11.800 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:25.079 --> 0:00:25.880 Live from New York. 0:00:26.000 --> 0:00:29.880 This is Bloomberg Technology coming up, Bitcoin blast past one 0:00:29.960 --> 0:00:33.000 hundred thousand dollars. We dig into the positive sentiment, including 0:00:33.040 --> 0:00:34.680 the sec share announcement. 0:00:35.080 --> 0:00:37.600 Plus it's TikTok for TikTok as. 0:00:37.440 --> 0:00:40.320 A social media joant anxiously awaits the legal decision on 0:00:40.360 --> 0:00:44.479 its upcoming US ban and geopolitical risks across Europe and 0:00:44.520 --> 0:00:47.519 Asia are bound, but US stock stay near records. Can 0:00:47.640 --> 0:00:51.879 tech keep American exceptionalism alive? But first, let's checking on 0:00:51.960 --> 0:00:55.800 these markets, because that exceptionalism just takes a turn to 0:00:55.840 --> 0:00:58.040 the downside, off by two ten percent on the Nasdaq 0:00:58.080 --> 0:01:00.280 one hundred. But look, we are so close to the 0:01:00.320 --> 0:01:03.560 record highs that we saw across benchmarks yesterday. We have 0:01:03.640 --> 0:01:05.920 some nervousness ahead of the non farm pay rolls tomorrow 0:01:05.920 --> 0:01:08.480 as job as claims come in today, and we still 0:01:08.480 --> 0:01:11.760 look at what's happening geopolitically speaking, Chips to the downside, 0:01:11.800 --> 0:01:14.240 Tesla to the upside as it gets basically a bit 0:01:14.280 --> 0:01:16.240 more optimism coming from Bank of America as they go 0:01:16.240 --> 0:01:18.480 to visit that gigafactory, move in on some of the 0:01:18.840 --> 0:01:21.320 other asset classes of choice. Here on the Tech show, 0:01:21.680 --> 0:01:25.199 bitcoin one hundred thousand, we're currently one hundred and one thousand. 0:01:25.280 --> 0:01:28.000 We went past one hundred and three thousand earlier, up 0:01:28.040 --> 0:01:32.360 three point six percent. Why a whole fledge of positive sentiment. 0:01:32.520 --> 0:01:34.479 Maybe it's a little bit to do with FED chair 0:01:34.600 --> 0:01:38.160 J Powell yesterday a deal book saying it's akin to gold. 0:01:38.200 --> 0:01:40.800 We've also got putin saying that he wouldn't be in 0:01:40.840 --> 0:01:43.960 any way restraining crypto. But then you have the all 0:01:44.000 --> 0:01:47.039 important Paul Atkins announcement announcement. Let's go to that with 0:01:47.040 --> 0:01:51.559 Bloomberg's Mike Shephard now because we do have someone from 0:01:51.840 --> 0:01:56.320 the Trump administration future administration SEC chair pick Paul Atkins, 0:01:56.360 --> 0:01:58.000 and just give us his background. 0:01:58.080 --> 0:02:00.000 Why is he seen as crypto friends. 0:02:01.680 --> 0:02:05.440 Well, he has emerged after years of being a well 0:02:05.480 --> 0:02:10.040 known regulator here in Washington. He previously served on the 0:02:10.120 --> 0:02:13.040 SEC as a commissioner during the George W. Bush era, 0:02:13.160 --> 0:02:16.520 so he has the street cred as a regulator. But 0:02:16.960 --> 0:02:20.400 more recently he has emerged as an advocate for digital 0:02:20.440 --> 0:02:24.800 currency and fintech, and so naturally investors around the world 0:02:24.800 --> 0:02:28.240 were so encouraged to see Donald Trump select him as 0:02:28.280 --> 0:02:33.200 the incoming SEC chair. During the presidential campaign, Trump really 0:02:33.280 --> 0:02:37.720 advocated for changes in US policy toward digital currency. He 0:02:37.760 --> 0:02:40.639 wants to make the US a crypto hub, and one 0:02:40.639 --> 0:02:43.520 of the keys to that is making changes at the SEC, 0:02:43.560 --> 0:02:46.720 which under President Joe Biden, has cracked down on this 0:02:46.840 --> 0:02:51.400 market after seeing some excesses we saw during twenty twenty 0:02:51.400 --> 0:02:56.320 two with fraudulent behavior that the current agency chair, Gary Gensler, 0:02:56.480 --> 0:03:00.080 singled out. But Trump has called for a change, and 0:03:00.480 --> 0:03:06.000 the crypto industry investors who supported his candidacy also wanted 0:03:06.000 --> 0:03:08.840 to see a change of the agency, hence their encouragement. 0:03:08.880 --> 0:03:11.760 Now and as you say, someone who has not only 0:03:11.840 --> 0:03:14.399 served on the SEC before as a commissioner, but someone 0:03:14.440 --> 0:03:18.120 who then gone on to advise fintech, in particular crypto companies. 0:03:18.400 --> 0:03:21.720 But just tell us a little bit more other than crypto. 0:03:21.800 --> 0:03:24.240 How else is he going to be facing the financial markets? 0:03:25.160 --> 0:03:27.040 Well, I'm glad you brought that up, Caroline, because he 0:03:27.160 --> 0:03:29.480 is far from a one trick pony. As I said, 0:03:29.520 --> 0:03:32.680 he is a seasoned regulator, one of the analysts that 0:03:32.720 --> 0:03:36.040 our colleagues spoke to yesterday after he was named, referred 0:03:36.040 --> 0:03:39.960 to him as the godfather of conservative capital markets ideology, 0:03:40.280 --> 0:03:42.280 and that is a big statement. But he will be 0:03:42.320 --> 0:03:45.280 coming in there with an agenda to make broader changes 0:03:45.320 --> 0:03:49.680 at the agency which oversees how markets report to investors 0:03:49.680 --> 0:03:53.680 and how companies report to investors in markets, and we 0:03:53.800 --> 0:03:57.360 will be looking possibly for changes and disclosure rules and 0:03:57.560 --> 0:04:01.200 also easing up perhaps of some the heavier fines that 0:04:01.240 --> 0:04:05.080 we've seen the SEC and POST under Gary Gensler. That 0:04:05.280 --> 0:04:07.640 is something that Atkins has singled out in the past, 0:04:07.640 --> 0:04:10.840 and we can look to him to try to target 0:04:10.840 --> 0:04:11.880 that again in the future. 0:04:12.560 --> 0:04:15.480 Mike Shephard, with all the context, we thank you for 0:04:15.520 --> 0:04:18.279 more on the border implications for the crypto market. Katherine 0:04:18.320 --> 0:04:21.160 Dowling's with us bitwise asset Management, General Counselor and chief 0:04:21.200 --> 0:04:24.839 compliance officer. And Catherine, I mean, just first and foremost 0:04:25.000 --> 0:04:27.280 more than one hundred thousand dollars for people who've been 0:04:27.279 --> 0:04:30.320 in crypto for a long time, that must feel extremely vindicating. 0:04:31.360 --> 0:04:33.680 It does, and thanks so much for having me this morning. 0:04:33.680 --> 0:04:36.960 It was fun to watch it go over six digits 0:04:37.040 --> 0:04:39.640 last evening and to see it continue to hold. 0:04:39.480 --> 0:04:42.600 Today when you think of the fund side on one, 0:04:42.680 --> 0:04:45.800 but also then the realities of what perhaps pull Atkins 0:04:45.760 --> 0:04:48.680 could mean. Dig in a little bit to the SEC announcement, 0:04:48.760 --> 0:04:49.720 what you made of it? 0:04:50.480 --> 0:04:51.320 Yeah? Absolutely. 0:04:51.600 --> 0:04:54.560 First off, leading up to this announcement, really all the 0:04:54.640 --> 0:04:57.400 names that were floated were positive. 0:04:57.360 --> 0:04:58.080 So we had that. 0:04:58.200 --> 0:05:01.120 We knew it was going to be better, So there 0:05:01.160 --> 0:05:04.920 was really no wrong answer. But in this choice, it's 0:05:05.000 --> 0:05:07.960 a great choice. Quite simply, you have somebody who can 0:05:08.040 --> 0:05:11.240 hit the ground running. He has been a commissioner before. 0:05:11.680 --> 0:05:15.760 He knows how the commission works. And one really important 0:05:15.760 --> 0:05:19.000 factor that we're hearing about Paul Atkins is he gets 0:05:19.040 --> 0:05:23.280 along with people. You can't underestimate how important that is. 0:05:23.480 --> 0:05:25.320 He needs to be able to work with the industry, 0:05:25.360 --> 0:05:27.200 he needs to be able to work with lawmakers. 0:05:27.640 --> 0:05:29.000 I've been at those. 0:05:28.839 --> 0:05:33.840 Hearings in Congress where it was antagonistic. Questions weren't being answered, 0:05:34.000 --> 0:05:37.120 eyes were being rolled, and this was the environment in 0:05:37.160 --> 0:05:41.680 which Crypto was trying to achieve regulatory clarity and it 0:05:41.800 --> 0:05:44.240 just wasn't going to happen with that back and forth 0:05:44.279 --> 0:05:48.000 and the tension that was created in the Gensler era. 0:05:48.200 --> 0:05:51.359 So we are very much looking forward to a person 0:05:51.400 --> 0:05:54.760 who can come in, hit the ground running, work with 0:05:54.880 --> 0:05:58.080 the other commissioners, and hopefully also have a dialogue with 0:05:58.120 --> 0:06:02.159 the CFTC and with lawmakers so in the new Congress 0:06:02.240 --> 0:06:04.560 we can get some clarity, we can get some forward 0:06:04.600 --> 0:06:08.960 motion stable coin bill market structure. So, quite simply, this 0:06:09.000 --> 0:06:12.279 is an excellent choice and he's another great ad to 0:06:12.600 --> 0:06:15.760 the you can't fault regardless of your politics, you can't 0:06:15.760 --> 0:06:18.479 fault the economic team that is being put together by 0:06:18.520 --> 0:06:19.960 the transition team here. 0:06:20.360 --> 0:06:23.479 Catherine, I want to just speak to the cynics out there. 0:06:23.640 --> 0:06:26.640 People are now out oh great, crypto's got a pro 0:06:26.680 --> 0:06:30.320 crypto sec chair, or all hell's going to break loose. 0:06:30.360 --> 0:06:32.520 We're going to see yet more fraudulent behavior that they 0:06:32.520 --> 0:06:34.840 believe goes on in space. I want to ask you 0:06:34.880 --> 0:06:37.920 because specifically, yes, you're in the ecosystem, but you're someone 0:06:37.960 --> 0:06:40.920 who comes from a federal prosecutor background. You're someone who's 0:06:40.920 --> 0:06:43.799 worked for US Attorney General offices in California. 0:06:43.880 --> 0:06:46.080 So speak to that concern. 0:06:45.680 --> 0:06:48.360 Here that we're suddenly going to see rip roaring in 0:06:48.400 --> 0:06:50.080 crypto with no holds barred. 0:06:50.680 --> 0:06:54.120 Great, Absolutely, you're going to have that approach. 0:06:54.240 --> 0:06:56.839 You're going to have the folks who are going to say, oh, great, 0:06:56.920 --> 0:06:59.840 there's going to be no regulation. But if you actually 0:07:00.120 --> 0:07:03.479 look the folks in the industry, we aren't asking for 0:07:03.560 --> 0:07:08.000 no regulation. We're asking for clarity for regulation. We're not 0:07:08.560 --> 0:07:11.720 just enforcement actions. And I know we've heard that quite 0:07:11.720 --> 0:07:13.600 a bit. What does that really mean? If you break 0:07:13.600 --> 0:07:17.520 it down, the enforcement actions are expensive, they're limited to 0:07:17.560 --> 0:07:21.119 the case and point. You don't get a broader rule 0:07:21.280 --> 0:07:24.480 that will help businesses who either haven't engaged with the 0:07:24.520 --> 0:07:26.520 industry or trying to engage. 0:07:26.080 --> 0:07:27.120 In the correct way. 0:07:27.480 --> 0:07:29.680 So having been at the attorney's office before and having 0:07:29.720 --> 0:07:33.280 worked very closely with the SEC the light doesn't flip overnight. 0:07:33.320 --> 0:07:35.560 It's not suddenly that all the cases or are going 0:07:35.600 --> 0:07:36.840 to disappear. 0:07:36.360 --> 0:07:37.000 Into the ether. 0:07:37.520 --> 0:07:40.040 It's just that you're going to have a better dialogue, 0:07:40.080 --> 0:07:43.000 you're going to get collaboration, and you're going to have 0:07:43.040 --> 0:07:45.040 a more positive approach. 0:07:44.640 --> 0:07:47.400 To how we get there. It's not we're not getting 0:07:47.480 --> 0:07:49.080 rid of everything. We're just going to. 0:07:49.120 --> 0:07:52.320 Get there in a more collaborative fashion, and that's what 0:07:52.400 --> 0:07:52.880 you need. 0:07:53.600 --> 0:07:55.520 What's interesting is we are seeing actually some of the 0:07:55.600 --> 0:07:58.480 crypto related companies just turning to the downside. A little 0:07:58.480 --> 0:08:00.800 bit a lot of run up into that announcements, so 0:08:00.800 --> 0:08:02.920 perhaps a bit of profit taking going on, Catherine, But 0:08:03.360 --> 0:08:06.320 spell out exactly what some of the you talk about, 0:08:06.440 --> 0:08:08.800 certain laws and regulations that need to be put in place. 0:08:09.040 --> 0:08:11.600 We hear about stable coins being tackled first and foremost. 0:08:12.040 --> 0:08:15.080 Is that the number one line on the agenda. 0:08:14.680 --> 0:08:15.440 From the SEC. 0:08:15.520 --> 0:08:17.440 Where do you think the first rules are going to come? 0:08:18.000 --> 0:08:18.200 Yeah? 0:08:18.240 --> 0:08:22.640 I think stable coin legislation coming from Congress will probably 0:08:22.640 --> 0:08:24.480 be the first one out, just because it's a smaller, 0:08:24.720 --> 0:08:28.960 niche er piece and there's been bipartisan support, So I 0:08:29.000 --> 0:08:31.120 think that's going to be the first, the first mover. 0:08:31.480 --> 0:08:34.319 The market structure legislation are referred to will take a 0:08:34.400 --> 0:08:35.559 little longer. 0:08:35.160 --> 0:08:38.199 But it's a more of a dialogue has to happen. 0:08:38.240 --> 0:08:41.440 That's the definition, that's who is going to be the 0:08:41.520 --> 0:08:45.640 regulator depending on where these assets sit from a definitional 0:08:45.720 --> 0:08:48.800 standpoint along the spectrum. So that'll take a little longer, 0:08:48.840 --> 0:08:51.240 but we'll have some more forward motion on both of 0:08:51.280 --> 0:08:51.920 those fronts. 0:08:53.160 --> 0:08:56.520 Is there any risk here could we see pill Atkins 0:08:57.000 --> 0:08:59.200 not take the role, not be acknowledged for the role. 0:09:00.360 --> 0:09:02.800 Well, there's always risk, but as I said, you know, 0:09:02.960 --> 0:09:05.920 we're hopeful that that goes smoothly. I see no obstacles 0:09:05.960 --> 0:09:09.960 out there that should block it. However, as I mentioned earlier, 0:09:10.440 --> 0:09:13.560 there are a list of other folks, all of whom 0:09:13.600 --> 0:09:17.200 would be great choices. I'm really liking the Pollakin's choice, 0:09:17.200 --> 0:09:20.440 given his involvement with the industry, his understanding, and quite 0:09:20.480 --> 0:09:24.480 frankly before, his demeanor and ability to collaborate and work 0:09:24.480 --> 0:09:27.680 with others, which is quite simply important in having a 0:09:27.760 --> 0:09:31.840 negotiated position with regard to some of this regulatory action. 0:09:32.400 --> 0:09:35.280 Catherine Dowling, great to have you join Bidwise Asset Management. 0:09:35.320 --> 0:09:36.120 We appreciate it. 0:09:36.840 --> 0:09:39.719 Elsewhere on Capitol Hill, Elon Musk is, in fact there 0:09:39.720 --> 0:09:43.240 today stoken congressional enthusiasm. He hopes for his pretty ambitious 0:09:43.240 --> 0:09:44.840 effort to sash at least two. 0:09:44.679 --> 0:09:46.280 Trillion dollars in the federal budget. 0:09:46.480 --> 0:09:48.959 Now, Mosk and his partner in the initiative, former Republican 0:09:49.000 --> 0:09:53.239 presidential candidate Vivit Gramswami, plan to meet with groups of lawmakers, 0:09:53.360 --> 0:09:56.440 followed by a session that all Republican House members have 0:09:56.520 --> 0:10:00.160 been invited to. Coming up, we'll discuss the impact the 0:10:00.240 --> 0:10:03.920 French government TERMOL on the country's businesses. And startup sector 0:10:04.320 --> 0:10:20.600 that's next. This is the Bloomberg technology. I think we're 0:10:20.640 --> 0:10:23.280 just going to hear from the National Rally leader Marine 0:10:23.320 --> 0:10:26.400 la Penn now, who is speaking with Bloomberg earlier today. 0:10:26.440 --> 0:10:29.839 Just take a listen because you need to l DI 0:10:29.960 --> 0:10:31.040 Missions Library. 0:10:31.160 --> 0:10:33.200 What I said was that the president's resignation is a 0:10:33.200 --> 0:10:35.760 personal decision for him and can only take place in 0:10:35.800 --> 0:10:38.760 my view, when a political crisis happens or an institutional 0:10:38.800 --> 0:10:41.160 crisis can no longer have any other solution than the 0:10:41.200 --> 0:10:44.560 resignation of the President of the Republic. What I do wish, 0:10:44.640 --> 0:10:46.440 on the other hand, because for sure there will be 0:10:46.600 --> 0:10:49.400 new legislative elections in the next few months, is that 0:10:49.440 --> 0:10:51.800 we work on a voting system by then that enables 0:10:51.880 --> 0:10:54.760 us to have a real majority, whatever that majority may be. 0:10:55.559 --> 0:10:58.040 But the country needs a majority. It can't live for 0:10:58.120 --> 0:11:00.800 months and years with three blocks, which in reality can't 0:11:00.800 --> 0:11:01.640 implement a policy. 0:11:04.200 --> 0:11:08.200 That was Marine Lapin of the National Rally commenting on Macron. 0:11:08.280 --> 0:11:11.520 President Macron's position, after, of course, he has been dismissing 0:11:11.600 --> 0:11:14.640 growing calls for his own resignations from politicians across the 0:11:14.679 --> 0:11:18.320 political spectrum, Macron came out saying he will serve out 0:11:18.320 --> 0:11:21.160 his second term in full. He's set to talk further 0:11:21.480 --> 0:11:24.640 at eight pm Local time, that's two pm here in 0:11:24.679 --> 0:11:27.040 New York. But let's just discuss the impact of all 0:11:27.040 --> 0:11:31.839 this political drama on French businesses, on tech companies Bloomberg's benwell, 0:11:31.880 --> 0:11:32.800 butflo does. 0:11:32.640 --> 0:11:35.440 That for us? And how a sentiment at the moment. 0:11:35.679 --> 0:11:39.080 Is there a moment of crisis among executive boards? 0:11:41.679 --> 0:11:45.680 Yes, I mean it's a moment of uncertainty and as 0:11:45.720 --> 0:11:49.840 we know, business leaders don't like uncertainty then like to 0:11:49.880 --> 0:11:52.079 be able to focust their. 0:11:51.840 --> 0:11:53.200 Budget for next year, etc. 0:11:53.520 --> 0:11:58.120 Actually, that uncertainty started this summer in June when Macron 0:11:58.640 --> 0:12:05.520 called the unexpected app election, So that's that's ongoing. Basically, Barnier, 0:12:05.640 --> 0:12:08.480 the Prime Minister, was preparing a budget for next year 0:12:08.880 --> 0:12:12.640 that was actually going to slash some helps for innovative 0:12:12.720 --> 0:12:17.679 startups on R and D, etc. So now there is 0:12:17.720 --> 0:12:20.439 a certainty of it's going to happen, we have there 0:12:20.520 --> 0:12:24.640 is a few weeks left for Macon first to pick 0:12:24.640 --> 0:12:28.760 a new prime minister and then to vote if possible, 0:12:28.880 --> 0:12:32.920 the budget. So yeah, like startup leaders and companies in 0:12:32.960 --> 0:12:35.679 general waiting to see what's going to be in that budget. 0:12:36.000 --> 0:12:40.800 Or if we are going to continue with this year's budget, 0:12:40.880 --> 0:12:45.840 which could be reconducted through next year through special law Benoir. 0:12:46.320 --> 0:12:49.959 It's notable that leaders like Eric Schmidt, course former Google 0:12:50.080 --> 0:12:53.560 CEO and now focused on geopolitics as in particular, has 0:12:53.600 --> 0:12:55.960 come on this show and said France is the standout 0:12:55.960 --> 0:12:58.520 in Europe in terms of getting things done, having a 0:12:58.559 --> 0:13:03.040 really healthy ecosystem where companies like Mistral for ai can thrive. 0:13:03.679 --> 0:13:05.959 Has that been something being questioned late. 0:13:08.679 --> 0:13:12.040 It's not been questioned, but you're right, Like Macrome started 0:13:13.320 --> 0:13:16.320 about seven years ago when it was first elected, a 0:13:16.400 --> 0:13:20.200 sort of push for what he called startup Nation. He 0:13:20.200 --> 0:13:25.600 helped companies to hire foreign scientists, for foreign companies to 0:13:25.640 --> 0:13:29.120 come to France to start their business. He's been doing 0:13:29.600 --> 0:13:34.400 some helps to get visas for foreign tech workers, for example. 0:13:34.480 --> 0:13:38.320 And then the push in AI led by open Ai 0:13:38.520 --> 0:13:42.600 led to new French startups trying to rival with open 0:13:42.640 --> 0:13:46.240 Ai like Mistroll. As you said, Macron is also going 0:13:46.280 --> 0:13:50.320 to be organizing a World summit in February or an AI. 0:13:51.080 --> 0:13:55.960 There certainly is this push that companies hope can continue, 0:13:56.320 --> 0:14:00.560 and obviously the political situation is not the best. Just 0:14:00.600 --> 0:14:05.400 to ensure that this momentum, which is quite fragile, can 0:14:05.520 --> 0:14:05.960 keep going. 0:14:07.000 --> 0:14:09.920 Benwa, It's great to have you. Bernan Bardelo on the 0:14:10.000 --> 0:14:13.199 impact in France at the moment. Sticking with international politics, 0:14:13.240 --> 0:14:16.320 South Korea's main opposition later says it may be difficult 0:14:16.320 --> 0:14:19.160 to get enough support from the ruling party to impeach 0:14:19.200 --> 0:14:24.000 President yunsuk yuil this week after his declaration of martial law, 0:14:24.400 --> 0:14:26.520 but he remains committed to removing the president. 0:14:26.640 --> 0:14:28.000 Democratic Party leader. 0:14:27.840 --> 0:14:30.480 Lee Jim young sat down for an interview with Bloomberg 0:14:30.520 --> 0:14:31.120 earlier today. 0:14:31.320 --> 0:14:35.880 Here's what he had to say. Chung Chung kungu chor Kumnia. 0:14:36.800 --> 0:14:41.120 Ultimately, politics is done by the people, and even if 0:14:41.120 --> 0:14:43.640 the result of the vote may go against the world 0:14:43.640 --> 0:14:47.240 the people in the current situation, the vote result may 0:14:47.320 --> 0:14:50.600 change next time if individual members of the parliament are 0:14:50.640 --> 0:14:56.320 pressured heavily by public opinion. That's what I think important. 0:14:55.960 --> 0:15:00.000 For companies such as Samsung, Skhiinex. Of course tech more broadly, 0:15:00.400 --> 0:15:02.840 let's discuss the impact of all this geopolitical uncertainty on 0:15:02.880 --> 0:15:03.440 tech markets. 0:15:03.440 --> 0:15:03.800 More broadly. 0:15:03.880 --> 0:15:06.600 J Jacobs us head of Thematic Active, BTF and black Rock, 0:15:06.600 --> 0:15:09.600 and thus far J hasn't had much impact that US 0:15:09.640 --> 0:15:12.480 stocks have continued to show their exceptionalism. We've had record 0:15:12.600 --> 0:15:15.120 high's yesterday amid global turmoil. 0:15:15.440 --> 0:15:16.160 What do you make of that? 0:15:17.800 --> 0:15:20.160 Well, actually, the tech sector in the United States is 0:15:20.200 --> 0:15:23.160 one of the most geopolitically exposed sectors out there. About 0:15:23.160 --> 0:15:25.600 sixty percent of the revenue of tech comes from overseas. 0:15:25.920 --> 0:15:28.160 So one of the ways that we've been looking about 0:15:28.360 --> 0:15:31.840 geopolitical fragmentation is can you really tilt your exposures within 0:15:31.880 --> 0:15:35.200 the tech sector to companies that buy in the United States, 0:15:35.240 --> 0:15:37.800 build in the US, cell in the United States really 0:15:37.840 --> 0:15:40.040 to try to isolate some of that geopolitical risk. I 0:15:40.080 --> 0:15:42.840 think it's very present in the tech sector in particular. 0:15:43.040 --> 0:15:43.960 Where would that end. 0:15:43.920 --> 0:15:46.760 Up leading you which companies I mean, first and foremost, 0:15:46.800 --> 0:15:48.400 you might think, well, those that have been benefiting from 0:15:48.440 --> 0:15:50.640 the Chipsact, who've been building here in the United States, 0:15:50.640 --> 0:15:52.600 but then inter hasn't exactly been having the best of 0:15:52.640 --> 0:15:53.160 times of it. 0:15:54.760 --> 0:15:57.360 Well, it's coming from a range of companies, just kind 0:15:57.360 --> 0:16:00.000 of across different industries within technology. I mean, I think 0:16:00.040 --> 0:16:02.400 if we look at artificial intelligence, we see that a 0:16:02.440 --> 0:16:05.920 lot of leadership is with US based companies. For example, 0:16:06.000 --> 0:16:09.560 you could look specifically at data centers and power companies 0:16:09.600 --> 0:16:12.520 as being really important parts of the AI ecosystem but 0:16:12.600 --> 0:16:15.000 are very localized to the United States. You're getting some 0:16:15.040 --> 0:16:17.920 of that isolation from geopolitics. We even brought out an 0:16:18.040 --> 0:16:21.120 entire fund based off of this strategy, I Etc. Which 0:16:21.160 --> 0:16:24.000 is really looking at the tech sector but tilting towards 0:16:24.120 --> 0:16:27.040 those US kind of very domestic focused companies to isolate 0:16:27.040 --> 0:16:27.880 geopolitical risk. 0:16:28.040 --> 0:16:28.880 That's really interesting. 0:16:28.880 --> 0:16:30.920 The infrastructure build out is one that many have turned 0:16:30.960 --> 0:16:34.160 to other than just thinking okay, in Vidia chips and shovels. 0:16:34.200 --> 0:16:36.720 We then think about the next layer down, the energy, 0:16:36.760 --> 0:16:38.800 the companies, But how many people are asking you, well, 0:16:38.840 --> 0:16:40.120 what about application layers? 0:16:40.120 --> 0:16:41.600 What about the next frontier of AI? 0:16:43.240 --> 0:16:45.320 That's really where a lot of the conversations are going. 0:16:45.320 --> 0:16:47.400 I think if we look at the last two years, 0:16:47.440 --> 0:16:49.640 it's been a huge focus on the Magnificent seven, and 0:16:49.680 --> 0:16:53.240 it's been a really concentrated rally within artificial intelligence. We 0:16:53.280 --> 0:16:55.080 think as we enter the third year of what we're 0:16:55.080 --> 0:16:58.080 really calling the build phase of artificial intelligence, this is 0:16:58.080 --> 0:16:59.800 when the markets are going to recognize that this is 0:16:59.800 --> 0:17:02.480 something much bigger that's going to impact a wider range 0:17:02.520 --> 0:17:05.119 of technology stocks. A wider range of semiconductor stocks, the 0:17:05.160 --> 0:17:08.440 power stocks. It could even impact cybersecurity stocks as data 0:17:08.480 --> 0:17:10.639 gets more valuable and needs to be protected. And you 0:17:10.640 --> 0:17:13.600 can even look at adjacent industries in financial services and 0:17:13.680 --> 0:17:16.960 healthcare where AI can really create more productivity and efficiency. 0:17:17.400 --> 0:17:19.600 So I think we're going to see a transition in 0:17:19.640 --> 0:17:22.520 twenty twenty five to really a broadening of that artificial 0:17:22.560 --> 0:17:23.399 intelligence story. 0:17:23.920 --> 0:17:25.639 How much of the story is starting to pick up 0:17:25.680 --> 0:17:26.840 back in crypto for you as. 0:17:26.800 --> 0:17:30.680 Well, Jay, Well, it's significant. You know, of course bitcoin 0:17:30.720 --> 0:17:34.640 passing one hundred thousand is a significant milestone, but really 0:17:34.640 --> 0:17:36.280 you have to take a step back and look at 0:17:36.280 --> 0:17:38.919 the broader picture of why is this happening. You know, 0:17:38.920 --> 0:17:42.960 I think there's certainly some anticipation of more friendly regulatory tellens, 0:17:43.200 --> 0:17:45.280 but also in your previous segment, you're just highlighting some 0:17:45.320 --> 0:17:47.959 of the geopolitical risk around the world in Europe and Asia, 0:17:48.320 --> 0:17:50.760 and in a lot of ways, professional managers which are 0:17:50.760 --> 0:17:53.720 really just starting to access digital assets for the first 0:17:53.760 --> 0:17:57.639 time with our launch of ibit our Bitcoin etp are 0:17:57.720 --> 0:18:00.560 thinking about it as a hedge in their portfolio. Behaves 0:18:00.680 --> 0:18:03.080 very differently from stocks and bonds, and if you see 0:18:03.080 --> 0:18:05.360 more geopolitical risk Bitcoin could really benefit. 0:18:06.040 --> 0:18:09.080 What's interesting about your role is not only thinking about 0:18:09.520 --> 0:18:12.320 strategy or leadership clients, but you're also thinking about the 0:18:12.359 --> 0:18:16.320 international ATF offering as well. And I'm just interested about 0:18:16.600 --> 0:18:21.119 whether anyone is betting on outside of the US. 0:18:21.160 --> 0:18:23.480 They are, but in more targeted ways where we've seen 0:18:23.520 --> 0:18:26.520 some really significant flows in the past year. Specifically looking 0:18:26.560 --> 0:18:30.000 at India is really a play on changing supply chains, 0:18:30.320 --> 0:18:32.680 particularly if you look at a lot of the reshoring 0:18:32.720 --> 0:18:35.119 that's happening in the United States. There's been an effort 0:18:35.200 --> 0:18:38.960 to build more here domestically, but also to diversify supply 0:18:39.040 --> 0:18:42.399 chains geographically, and India has been a major beneficiary. Just 0:18:42.440 --> 0:18:44.160 like we have a Chips Act in the United States, 0:18:44.240 --> 0:18:46.760 they've been focused on building out more chip capacity as 0:18:46.760 --> 0:18:49.320 well as well as building out more tech manufacturing. So 0:18:49.400 --> 0:18:52.080 India has been a big beneficiary Mexico as well as 0:18:52.119 --> 0:18:54.320 you look at nearshoring and the interplay of growing trade 0:18:54.359 --> 0:18:55.960 relations between the US and Mexico. 0:18:56.240 --> 0:18:58.800 Fascinating. J Jacobs, thanks so much for that. US Head 0:18:58.800 --> 0:19:09.680 of Thematic and Active ETF over a black Rock AMD 0:19:09.880 --> 0:19:12.640 CEO Lisa Sue spent the better part of her ten 0:19:12.720 --> 0:19:16.120 year career engineering, one of the biggest turnarounds in Silicon 0:19:16.160 --> 0:19:19.560 Valley history. Now just preparing for a battle against Nvidia, 0:19:20.000 --> 0:19:22.440 Emily Chang sat down in the CEO at MD's headquarters 0:19:22.440 --> 0:19:25.160 in Austin, Texas to discuss the bets she's. 0:19:24.960 --> 0:19:25.960 Making to compete. 0:19:26.000 --> 0:19:28.919 A long view on the global chip supply chain and 0:19:29.040 --> 0:19:31.960 even her distant family link within video CEO just one 0:19:32.040 --> 0:19:32.560 take a listen. 0:19:33.480 --> 0:19:36.399 In Vidia is seen as the dominant force in AI 0:19:36.520 --> 0:19:39.960 right now, and AMD is widely considered the next best option. 0:19:40.280 --> 0:19:41.200 Is that good enough for you? 0:19:41.680 --> 0:19:43.520 Do you like being seen as the underdog? 0:19:44.880 --> 0:19:47.080 I wouldn't call it a like or dislike. 0:19:47.119 --> 0:19:50.280 What I would say is, you know, AMD has had 0:19:50.400 --> 0:19:55.840 a history of doing amazing things, and from that standpoint, 0:19:56.280 --> 0:19:59.719 we've always been in this place where we haven't necessarily 0:19:59.720 --> 0:20:02.920 had same amount of people that you know, other larger 0:20:02.960 --> 0:20:06.080 companies have, but we've certainly punched well above our weight 0:20:06.480 --> 0:20:09.679 in terms of technology capability, in terms of impact on 0:20:09.720 --> 0:20:10.280 the industry. 0:20:10.480 --> 0:20:13.560 This is the most complex highest performance computer. 0:20:13.640 --> 0:20:15.919 People are kind of obsessed with the fact that you 0:20:15.960 --> 0:20:17.920 and Jensen are distant cousins. 0:20:18.560 --> 0:20:21.800 I know that you are competitors, but do you ever treat. 0:20:21.640 --> 0:20:25.399 Notes well, first of all, Jensen is brilliant, so I 0:20:25.560 --> 0:20:29.520 fully admire him for that. We were really distant, so 0:20:29.880 --> 0:20:31.000 we didn't grow up together. 0:20:31.160 --> 0:20:31.359 You know. 0:20:31.400 --> 0:20:35.760 We actually met at an industry event, so it wasn't 0:20:35.840 --> 0:20:37.600 until we were well into our careers. 0:20:37.760 --> 0:20:38.840 So no family dinners. 0:20:39.160 --> 0:20:41.159 Just to put the rumor to rest. 0:20:41.480 --> 0:20:43.640 No family dinners. And it's an interesting coincidence. 0:20:43.880 --> 0:20:45.800 So many of your customers are building their own chips 0:20:46.200 --> 0:20:50.359