Speaker 1: Bloomberg Audio Studios, podcasts, radio news from the heart of
Speaker 1: where innovation, money and power collide in Silicon Valley and beyond.
Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 2: Live from New York.
Speaker 3: I'm Caroline Hyde, and this is Bloomberg Technology.
Speaker 4: Coming up.
Speaker 3: Tariff winners and losers in the EV industry as President
Speaker 3: Trump signs a twenty five percent.
Speaker 2: Tariff on auto imports plus core.
Speaker 3: We've tests the ibo and AI appetite for brands to
Speaker 3: cut the size of its US listening sources tell Bloomberg,
Speaker 3: while Open Ai shows continued AI optimism, finalizing a fourteen
Speaker 3: billion dollar funding round led by softbankargest of all time.
Speaker 3: But first we check in on markets, which are being whiswored.
Speaker 2: At the moment.
Speaker 3: We started in the red. We're now managing to push
Speaker 3: it into the green. On the Nasdaq one hundred, we're
Speaker 3: led higher by names that I will reveal in a moment.
Speaker 3: But on the downside is AMD, for example, once again
Speaker 3: being called out for its lack of competitive edge versus
Speaker 3: an nvidio. You've got PDD on the downside from a
Speaker 3: points perspective, But Moon Music trying to digest the ongoing
Speaker 3: tariff narrative coming from the White House when it means
Speaker 3: for the auto sect. And we dive into that now
Speaker 3: because on a points perspective, the biggest drag higher Tesla.
Speaker 2: We're up by six call it seven percent.
Speaker 3: Now, this is of course, it makes an awful lot
Speaker 3: of the components and its cars right here in the
Speaker 3: United States. Yes, it has exposure to Mexico, but less
Speaker 3: than competitors we saw. We also see Rivian up by
Speaker 3: six point three percent. Again focused on how perhaps evs
Speaker 3: can manage to be owning their own supply chain in
Speaker 3: this moment, unlike the likes of Ford of by two
Speaker 3: and a half percent, unlike the likes of gm are
Speaker 3: by six point eight percent, where they are significantly exposed
Speaker 3: to supply chains coming from Mexico and indeed from Canada.
Speaker 3: Let's tie us all together with a tech perspective. Mike
Speaker 3: Shephard joins us for more. And it is so interesting
Speaker 3: in the haves and the have nots. Right now, Mike,
Speaker 3: just tell us the update on what is going to
Speaker 3: be coming from the White House come April.
Speaker 5: Well, Donald Trump previewed some of that yesterday as he
Speaker 5: unfurled those auto tariffs that we were just talking about
Speaker 5: and their various impacts, and what we can expect on
Speaker 5: April second, what the President is calling Liberation Day is
Speaker 5: what he calls a round of reciprocal tariffs, and this
Speaker 5: is to try to even out the trading relationships in
Speaker 5: his view, with partners around the world. And these include
Speaker 5: countries that in the US position, put American exporters and
Speaker 5: products at a disadvantage when they are exported abroad, and
Speaker 5: he is trying to level the playing field in his
Speaker 5: view by imposing tariffs against those trading partners.
Speaker 6: It's some of the biggest.
Speaker 5: Targets that we're going to see or going to be
Speaker 5: the European Union and then other countries where there is
Speaker 5: some sort of imbalance. And for tech, one area of
Speaker 5: concern could of course be Taiwan. It's a key trading partner,
Speaker 5: but it also has a huge trade surplus with respect
Speaker 5: to the US. It also happens to be a major
Speaker 5: source of the semiconductors that Nvidia and AMD design but
Speaker 5: have produced by TSMC there So this is something the
Speaker 5: tech industry is going to be watching very closely. And
Speaker 5: I will add on semiconductors. Trump has also promised possibly,
Speaker 5: but he hasn't guaranteed levees on the imports of chips
Speaker 5: as well, possibly coming April second, but again we are
Speaker 5: uncertain about that. The autos tariffs were supposed to come
Speaker 5: April second, he moved them up by several days, so
Speaker 5: really we're in a wait and see mode there, Mike.
Speaker 3: I love how you broaden us out across all the
Speaker 3: industries that we look to potentially be impacted in the future.
Speaker 3: For right here, right now, let's go back to Auto's
Speaker 3: It's interesting that Tesla is being seen by the market
Speaker 3: as someone that has a protection from this sort of
Speaker 3: a tariff Levey, but Elon Musk himself posting that they
Speaker 3: are exposed.
Speaker 2: Just not to the tune of a GM or a Ford.
Speaker 5: Well, that's right, and they do have some insulation from it,
Speaker 5: mainly for two reasons. When you indicated at the top
Speaker 5: and talking about the market impact, they make all of
Speaker 5: their US sold vehicles in California and in Texas, they
Speaker 5: really have no exposure when it comes to finished cars
Speaker 5: and vehicles being brought into the United States, and even
Speaker 5: on the component side, in most of their vehicles they
Speaker 5: have at least sixty percent or up to seventy five
Speaker 5: percent depending on the model of components that are made
Speaker 5: here in the US. So they do have some insulation
Speaker 5: there and that offers them some protection from the worst
Speaker 5: of it compared to say rivals like Hyundai or GM.
Speaker 3: Even Mike, great, roundup, Thank you so much, bloom Meg's
Speaker 3: Mike Shephard.
Speaker 2: Let's continue the conversation with.
Speaker 3: Andrew Rodgers, Senior vice president at Boundary Stone Partners. It's
Speaker 3: a government affairs consulting firm focused on clean energy. Andrew,
Speaker 3: you've got well over twenty years of expertise and transportation
Speaker 3: in the structure and implementation of policy here. How much
Speaker 3: of an upending is this to the business models of
Speaker 3: evs and indeed auto makers boom broadly.
Speaker 7: Yeah, I mean, I don't think the effect can be
Speaker 7: understated here. The auto industry, much like the road in
Speaker 7: bridge building industry, relies on predictability, certainty, reliability. There's a
Speaker 7: reason that we fund roads and bridges on five year
Speaker 7: cycles because these are large projects that take a lot
Speaker 7: of predictability and investment over time. With the tariffs that
Speaker 7: were announced yesterday, you can just look across the automotive
Speaker 7: sector and already see the ripple effect that it is
Speaker 7: having with sales stock prices plunging across from multiple sectors,
Speaker 7: including hitting the Tier one suppliers.
Speaker 8: Now, I'll say that the underlying goal of.
Speaker 7: These tariffs is quite laudable to reshore domestic supply chains
Speaker 7: to build up manufacturing the United States, and there's a
Speaker 7: lot of policies that President Trump put in place in
Speaker 7: his first term that continued through the Biden administration. Now
Speaker 7: that having been said, the practical reality somewhat different. Automakers
Speaker 7: every led on global supply chains for decades, and the
Speaker 7: days of you know, a model T soup to nuts
Speaker 7: rolling off an assembly line in Highland Park, Michigan, are
Speaker 7: long gone and they're not coming back. And so, really
Speaker 7: automakers are faced with three tough choices right now. Either
Speaker 7: absorb these costs, pass them on to the consumers, or
Speaker 7: begin a years long, heavily investment reliant process of reshoring
Speaker 7: these automaker supply chains.
Speaker 3: Do they have the confidence to take the third option,
Speaker 3: to recommit and to spend that sort of money when
Speaker 3: terms about four years, I think the.
Speaker 8: Word of the day is uncertainty.
Speaker 7: And the fact is is that there was a reason
Speaker 7: that the ev sector saw nearly three hundred million dollars
Speaker 7: give me three hundred million dollars of investment in just
Speaker 7: the last couple of years. They were getting clear signals
Speaker 7: from Washington through the Biparson Infrastructure Law, through the investment,
Speaker 7: through the Inflation Reduction Act, through the Chips Act, and
Speaker 7: seventy percent of that three hundred billion dollar invest is
Speaker 7: already specifically allocated to facilities that.
Speaker 8: Are coming online.
Speaker 7: When you have what seems to be somewhat more reactionary
Speaker 7: and less targeted tariffs and other trade policies coming online,
Speaker 7: it's much more difficult to have that confidence to begin
Speaker 7: reshoring supply chains and for fears of a whipsaw in
Speaker 7: a different direction in a couple of years.
Speaker 3: It's interesting that, of course, the market is understanding and
Speaker 3: trading on the idea that Tesla is more insulated, that
Speaker 3: Rivian is more insulated.
Speaker 2: But many had put.
Speaker 3: Research out there that ultimately the price the average price
Speaker 3: of a car is going to go up five to
Speaker 3: eight thousand dollars, but for an EV it's going to
Speaker 3: go up twelve thousand dollars. And I'm interested as to
Speaker 3: how the supply chains, particularly with electric vehicles, are being
Speaker 3: an issue here considering it's so dependent for magnets for
Speaker 3: rare earths and minerals from abroad.
Speaker 8: Two points there.
Speaker 7: So the first I would just maybe put Tessela in
Speaker 7: a slightly different category. I think it's stock is long
Speaker 7: traded on prices, maybe untethered from fundamentals, so we'll put
Speaker 7: that in a slightly different space. But I think the
Speaker 7: broader points on the EV industry is it is in
Speaker 7: many ways different than your traditional internal combustion engine manufacturers,
Speaker 7: and so the ribbeans and the tuzzles the world do
Speaker 7: have a leg up on the legacy automakers who are
Speaker 7: developing these these supply chains online. And that investment that
Speaker 7: I just spoke to, the three hundred billion dollars plus
Speaker 7: in the last couple of years, that was the legacy
Speaker 7: automakers beginning that work. And so yes, I think that
Speaker 7: that investment will continue. But if you're talking about raising
Speaker 7: costs because of teriffs, which can reduce demand ultimately leave
Speaker 7: more cars on the lots, that can impact jobs, that
Speaker 7: can cause contraction in the industry, and that can ultimately
Speaker 7: diminished demand, which sends the absolute wrong signal at a
Speaker 7: time when those industries are looking to.
Speaker 3: Invest Andrew, You've been the Deputy Federal Highway Administrator, You've
Speaker 3: worked within government, You've been chief counsel on Federal Highways,
Speaker 3: You've been You've got such a wealth of experience here.
Speaker 3: I'm sure you're building plenty of calls when you get
Speaker 3: off air. What is the number one question that you're
Speaker 3: being taken right now from the industry?
Speaker 8: Is this real?
Speaker 7: Is this actually going to happen? Is this the new reality?
Speaker 7: And I think the answer is is that. Look, if
Speaker 7: you take the president at face value, and I'm doing
Speaker 7: that more and more in the second administration, I think
Speaker 7: we need to look at the long term and short
Speaker 7: term effects of these policies and plan for what is
Speaker 7: being stated publicly to take root in some way, shape
Speaker 7: or form. But I think the book is still being
Speaker 7: written on exactly what form that looks like.
Speaker 3: Andrew Rogers trying to help us navigate this uncertainty boundary
Speaker 3: Stone Partners, you.
Speaker 2: Appreciate it now.
Speaker 3: The Trump administration is also just cut twenty million dollars
Speaker 3: in funding for the agency responsible for chip export controls.
Speaker 3: That's about ten percent of the Commons Department's Bureau of
Speaker 3: Industry and Security budget. Democratic senators well, they've criticized the moved,
Speaker 3: warning it could undermine US efforts to stay ahead at
Speaker 3: you and the AI race and compromise national security. Coming up,
Speaker 3: core Weave is said to plan a reduction in its
Speaker 3: IPO size.
Speaker 2: We're on that next.
Speaker 4: It's a rumor technology.
Speaker 3: Cor Weave it intends to cut the size of its
Speaker 3: IPO to around one and a half billion dollars raised.
Speaker 2: That's according to sources.
Speaker 3: Now, the cloud computing provider will instead offer investors about
Speaker 3: thirty seven and a half million shares at a forty
Speaker 3: dollars price point. That's down from initial plans of forty
Speaker 3: nine million shares at forty seven to fifty five dollars each.
Speaker 3: For more of billiombergs, Ryan Gould joins us for more. Look,
Speaker 3: it is about a month ago that we were talking
Speaker 3: about a four billion dollar raise in new money for
Speaker 3: core Weave, and now we more than half that.
Speaker 9: Yeah, I mean, I think I would say at the
Speaker 9: outset that this is still a very fluid situation. You know,
Speaker 9: Kreweve is not meant to start trading until tomorrow, so
Speaker 9: anything can all happen. But certainly the sources that we
Speaker 9: were talking to this morning are saying that you know,
Speaker 9: the company was considering looking and cutting the rays down
Speaker 9: to one point five billion dollars. That would take the
Speaker 9: fully diluted valuation back to somewhere similar to its last
Speaker 9: public round that was reported, So that would be around
Speaker 9: twenty three billion dollars in a fully diluted basis. That
Speaker 9: is quite the cut when you think about what we
Speaker 9: were talking about maybe a month or so ago, and
Speaker 9: when there was some more exuberance in the market around
Speaker 9: this kind of trait. This is AI, this was data centers.
Speaker 9: These are kinds of all the tailwinds that you'd be
Speaker 9: thinking about positively coming into an IPO that is meant
Speaker 9: to be one of the biggest of the year.
Speaker 2: It's interesting that.
Speaker 3: They sort of can't stop this IPO train and a
Speaker 3: moment where in Realdio's down twenty five percent from its high,
Speaker 3: so we've see market valuations wiped out for Microsoft more
Speaker 3: than ten percent, and ultimately in the NAS that one
Speaker 3: hundred is in correction territory, No wonder it's going to
Speaker 3: struggle at this moment. Would they ever think about changing
Speaker 3: direction because this just seems to be the wrong time.
Speaker 9: Yeah, I think, you know, based on what we understand
Speaker 9: as of right now, and again I just do want
Speaker 9: to preface nevers that it is still fluid, but as
Speaker 9: of right now, we're not under the impression that they're
Speaker 9: going to pull this thing. So I think Corey will
Speaker 9: trade at some point, and we'll be watching tomorrow obviously
Speaker 9: to see where it exactly trades and opens that. But
Speaker 9: as of right now, I think one of the other
Speaker 9: big things that they've obviously looked towards this morning is
Speaker 9: that in Vidia, who is obviously already a big customer
Speaker 9: relationship of kor we've is going to come in with
Speaker 9: quite a significant anchor order. That anchor order is going
Speaker 9: to be worth around two hundred and fifty million dollars
Speaker 9: at forty dollars a share, And that's what we're reporting,
Speaker 9: That's what you know some others have reported, and I
Speaker 9: think that just gives you some kind of indication as
Speaker 9: to exactly kind of some of the momentum that is
Speaker 9: required to get a trade like this over the line
Speaker 9: in this market.
Speaker 3: But it speaks in videos perhaps own anxiety that this
Speaker 3: just feeds into some of the negative headlines the AI
Speaker 3: bubble anxiety that's been brewing.
Speaker 2: We've had Josi or Ali Baba.
Speaker 10: Warn about it.
Speaker 3: You've even had TV Cowan continuing to tell us that
Speaker 3: Microsoft is pulling back on data center demand. Well, they're
Speaker 3: a key customer of Corwave, right.
Speaker 9: Yeah, I mean seventy seven percent of the revenue was
Speaker 9: of Corey've lost it two customers, one of which you're
Speaker 9: the main one was Microsoft. So you know, in a
Speaker 9: week when td cown is coming out and saying stuff
Speaker 9: like that, I think, you know, if your core weave,
Speaker 9: that's probably not very helpful to you. But again, you know,
Speaker 9: investors are going to make a take of you, and
Speaker 9: there's going to be value. They're going to be constructive
Speaker 9: on value at certain points. And I think this indication
Speaker 9: this morning that we've had that they're potentially considering the
Speaker 9: downsize at forty a share, I think, you know, there's
Speaker 9: clearly strength and so I'm sure that they're going to
Speaker 9: feel like they can come out and get this over
Speaker 9: the line in some shape or form.
Speaker 3: JP Morgan Goldman having to earn their money on this one,
Speaker 3: it seems wrangled. Thanks so much now sticking with going
Speaker 3: public look social platform Discord also said to be working
Speaker 3: with the likes of Goldman, Sacks and JP Morgan on
Speaker 3: a potential IPO. It's according to sources, the company could
Speaker 3: seek a listing as soon as this year. Discord's popularity,
Speaker 3: of course, saw during pandemic times, and the company even
Speaker 3: rejected a twelve billion dollar takeover from Microsoft back in
Speaker 3: twenty twenty one. I mean, while Flexport also saying it's
Speaker 3: still aiming to go public despite missing its profitability tar
Speaker 3: getting twenty twenty four, it's all according to The Wall
Speaker 3: Street Journal, Like Discord, the tech focused freight company saw
Speaker 3: strong demand during the pandemic said it extended its timeline
Speaker 3: to reach profitability. Let's get another check on AI optimism
Speaker 3: right now, because open ai is set to be close
Speaker 3: to finalizing a whopping forty billion dollar funding round than
Speaker 3: by soft Bank.
Speaker 2: So all.
Speaker 3: According to sources, the deal would set potentially the value
Speaker 3: of the company of three hundred billion, almost double its
Speaker 3: valuation back in October. For more, Bloomberg's Kate Clarks helps
Speaker 3: break it down. It's so interesting that an IPO we're
Speaker 3: all worrying about, well, the private market, SoftBank and others
Speaker 3: just really committing to open Ai at this time.
Speaker 11: Yes, there are still a lot of craziness happening on
Speaker 11: the private markets when it comes to AI, is still
Speaker 11: a lot of optimism, and the optimism being inflated in
Speaker 11: many ways by the latest release coming from open Ai.
Speaker 3: We are so fixated about their image generator, proving that
Speaker 3: they can be accessible for business cases, personal cases, and
Speaker 3: we've seen that their revenues have been on the up
Speaker 3: and up.
Speaker 11: Right exactly, They're expected to triple revenue this year, and
Speaker 11: they have some wild and perhaps outline projections for the
Speaker 11: coming years. But this is exactly why investors are still very,
Speaker 11: very very optimistic and excited about funding the company, despite
Speaker 11: the fact that it has massive, massive expenses, including talent,
Speaker 11: data centers of course, and the very very expensive AI chips.
Speaker 2: What's interesting is the crossover of investor base.
Speaker 3: Like magnetah is we understand committing more to open Ai,
Speaker 3: it's also an investoring call weave, but for this one,
Speaker 3: it's all about soft Bank. Well, they're going to commit
Speaker 3: basically thirty billion of the forty billion.
Speaker 11: Yes, exactly, So soft Bank is the major player here.
Speaker 11: They are funding a very large portion of this round.
Speaker 11: But as you said, there are also very many hedge
Speaker 11: funds that are participating. There are venture capital funds including
Speaker 11: Altimeter and COO TOW, which are crossover funds, but they
Speaker 11: are expected to participate. And then you have probably sovereign
Speaker 11: wealth funds from all over the world that have already
Speaker 11: funded open AI and that are expected to continue funding
Speaker 11: open AI and give us.
Speaker 3: The ultimate view that this is a company that continues
Speaker 3: to expand and continues to weather what is public market anxiety.
Speaker 3: They're not thinking that this company is gonna go public
Speaker 3: in the nig future.
Speaker 2: No, I think there's a lot of questions about that.
Speaker 11: But they do expect that this is the next trillion
Speaker 11: dollar company, This is the next Google, this is the
Speaker 11: next MATA. That is the bet that these these investors
Speaker 11: are making, and a soft Bank the bet is also
Speaker 11: to become one of the most influential players in global
Speaker 11: artificial general intelligence in the race toward AGI. SoftBank wants
Speaker 11: to have that front row seat.
Speaker 3: And we've seen them make excisions of them here and
Speaker 3: of course they're also they're making They're making moose Massa
Speaker 3: is always making moose Cake. Clark, we so appreciate having
Speaker 3: her on technology provide a. Lumina is expanding its partnerships
Speaker 3: beyond car makers. The developer of Liedar Hardware and Software
Speaker 3: has a new deal with construction equipment manufacturer Caterpillar.
Speaker 2: Luminar's CEO, Austin Russell, joins us.
Speaker 3: Your shares pushing higher on the news, Austin and why
Speaker 3: make this move into industrial?
Speaker 12: Yes, so, no, it's excited to be hearing. Thanks for
Speaker 12: having me as part of this. I think it makes
Speaker 12: total sense as the market. You know, we're coming hot
Speaker 12: off the heels of a couple of major you know,
Speaker 12: automotive launches with Volvo now getting the product into production,
Speaker 12: to the technology for these light our systems you know,
Speaker 12: and AI related systems going into the market, and we
Speaker 12: can leverage that towards these industrial automation markets, you know.
Speaker 12: I mean it's what on the order of industrial automation
Speaker 12: on the ear of a two hundred billion dollar a
Speaker 12: year industry today and this is a big foray into
Speaker 12: it for us, you know. So being able to have
Speaker 12: Caterpillar as the leading provider of and manufacturer of industrial equipment.
Speaker 12: More broadly, selecting Luminar to partner with to make this
Speaker 12: happen as part of their next generation platform is something
Speaker 12: that just makes total sense as we expand beyond the
Speaker 12: auto market. But again leveraging those same capabilities, technology and
Speaker 12: products as what we've been making for the automotive market,
Speaker 12: and you know, there's a huge amount of value to.
Speaker 3: Be created now they're going to the cap off highway
Speaker 3: trucks for exils. But this doesn't anyways speak to a
Speaker 3: lack of commitment in the av space. You still push
Speaker 3: you ahead as hard as ever there.
Speaker 8: Oh absolutely.
Speaker 12: I mean just this year alone, we're going to be
Speaker 12: seeing what two hundred and three hundred percent you know,
Speaker 12: growth in the automotive space for what it relates to
Speaker 12: our light, our production and shipments you know, globally to
Speaker 12: these different automakers. So that's something that we're really excited
Speaker 12: about and pushing full speed ahead on to get those
Speaker 12: economies of scale and get that ramped up. But in parallel,
Speaker 12: it makes total sense of to be able to capitalize
Speaker 12: on markets like this as auto continues to be able
Speaker 12: to ramp up in order to be able to I
Speaker 12: would say, have that same mission around safety and autonomy
Speaker 12: in a very high value add way. And of course
Speaker 12: the ASPS and sales price that we're able to get
Speaker 12: in the industrial markets is actually a multiple for the
Speaker 12: same products in capabilities is what it is in the
Speaker 12: auto market.
Speaker 3: So it just makes and is that the average selling
Speaker 3: price is that because of a lack of competition. We
Speaker 3: just think at the moment, the anxiety around your company,
Speaker 3: your stock has been Chinese competition in particular, and when
Speaker 3: it comes to, for example, reporting the Mercedes is going
Speaker 3: with a Chinese competitor, are those the narrative is true?
Speaker 12: Well, first of all, I think taking a step back
Speaker 12: a little bit, you can give China certainly a credit
Speaker 12: for a lot of early adoption when it comes to
Speaker 12: you know, the Chinese market and light our market where
Speaker 12: you now have you know what on the order of
Speaker 12: a million vehicles being shipped, you know, with light Ar
Speaker 12: and local providers. When it comes to a global standard
Speaker 12: and the capabilities and technology, Luminar is really second to none.
Speaker 12: And I think you pointed out maybe there was some
Speaker 12: confusion or misreporting earlier on some speculation when it comes
Speaker 12: to you know, Chinese for some of the rest of
Speaker 12: the world, Luminar's partnerships with the global automakers is not
Speaker 12: only strong, but we're in the leading position when it
Speaker 12: comes to global automakers more broadly, and I think that's
Speaker 12: something that we're going to continue to capitalize on for
Speaker 12: the broader Western world, which represents about ninety percent of
Speaker 12: the volume and maybe even more of the value of
Speaker 12: the global automotive market. And I think even with for example,
Speaker 12: in Mercedes in particular, I mean, things have been continuing
Speaker 12: to move full speed ahead, you know, since the original
Speaker 12: partnership that we've had with them, and actually even just
Speaker 12: signed up officially to be able to use Halo as
Speaker 12: kind of that next generation product that we kind of
Speaker 12: alluded to at at earnings. So this is something that
Speaker 12: we're in full speed ahead on. And by the way,
Speaker 12: the Halo is the next generation technology beyond what we're
Speaker 12: doing today, and that further allows us to standardize the
Speaker 12: product across these markets and industries.
Speaker 3: So you have the Mercedes Benz business. When reporting was
Speaker 3: that Hesai had it. I'm interested that tariffs. You talked
Speaker 3: about production. How you're going to be scaling more than
Speaker 3: two hundred percent in terms of the amount of light
Speaker 3: Oh you're going to be producing, but you produce over
Speaker 3: in Mexico as well.
Speaker 2: How is the current administration going to be affecting that?
Speaker 12: Yeah, So, so I mean there's a lot of different
Speaker 12: kinds of tariff considerations more broadly, and I would say
Speaker 12: in terms of all the different dynamics going on, Yeah,
Speaker 12: Mexico is certainly one of those that's obviously a hot
Speaker 12: button topic. We have a portion of our content value
Speaker 12: that that comes from from Mexico currently that ships into
Speaker 12: the US for the production you know, in particular of
Speaker 12: the Bulbo vehicles that are being produced in South Carolina.
Speaker 12: So what we're we're working through as part of our
Speaker 12: global supply chain, which Luminar is uniquely set up between Mexico, Thailand,
Speaker 12: you know, and also with a Taiwanese company t PK.
Speaker 12: We we actually have the ability to be able to
Speaker 12: shift around between our different partners at a global scale
Speaker 12: that whichever way the trade winds blow, we're able to
Speaker 12: have a truly global presence there. So so that's something
Speaker 12: that's that's going to be as part of a evolving
Speaker 12: you know, production plan over the coming call it next
Speaker 12: few weeks to make sure that's such in place. The
Speaker 12: only other thing I'll say is that when it comes
Speaker 12: to the terriffs for the vehicles themselves, we know there's
Speaker 12: obviously new tariffs that are introduced today, but when it
Speaker 12: comes down to it, you know, the vast majority of
Speaker 12: all the production that we have going the US vehicles now,
Speaker 12: so that's not really affected by this.
Speaker 2: Austin Russell of lumin oar CEO.
Speaker 10: Great to have your time with. Thank you.
Speaker 3: This is Blue Meg Technology. Welcome back to Blue Meg Technology.
Speaker 3: I'm Caroline Hide in New York. A quick check on
Speaker 3: these pretty volatile markets today. We've whipped between losses then gains.
Speaker 3: We remain up about a tenth percent on the NASAQ
Speaker 3: one hundred. So try to digest what the latest tariff
Speaker 3: news coming from the White House really means the auto sector,
Speaker 3: but how it spills into other sectors as well. As
Speaker 3: we of course anticipate the beginning of April and more
Speaker 3: of those retaliatory tariffs to come on board, we move
Speaker 3: on and have a little look at what's happening on
Speaker 3: the individual names, because from a points perspective, apple to
Speaker 3: the higher side. On the downside is a lot of
Speaker 3: the chip names. You're seeing Broadcom on the downside, Video
Speaker 3: off by a quarter of a percent, AMD off by
Speaker 3: three point four percent. Come we're really seeing some anxiety
Speaker 3: built in about what the auto sector means for the
Speaker 3: semiconductor sector and what sort of tariffs we can see there,
Speaker 3: but also AMD getting a note out from Jeffreys saying
Speaker 3: once again it is not managing to compete against Nvidia,
Speaker 3: or off by three percent, gainstop off by fourteen percent,
Speaker 3: having its worst date since September of last year. This
Speaker 3: is an announced it's going to be selling convertible notes do
Speaker 3: by bitcoin. Yesterday, that news that they're looking to put
Speaker 3: it on their balance sheet was a higher side push,
Speaker 3: but today it's a drag as we see the likes
Speaker 3: of web Bush saying this is going to fall flat
Speaker 3: as an offering and even though potentially you can't always
Speaker 3: bet against the retail investor, but let's just get more
Speaker 3: broader perspective on these markets. How on Earth you trade them,
Speaker 3: let alone invest for the long term. We're joined by
Speaker 3: Mike Reynolds, is the vice president of investment strategy over
Speaker 3: at glen Mead, and boy, you have to be able
Speaker 3: to take a long term percent effective right now? Are
Speaker 3: you seeing investors willing to get into this market when
Speaker 3: there's such noise coming from the administration.
Speaker 13: There's just been considerable uncertainty around trade policy, not just
Speaker 13: the actual details of the policy itself, but just the
Speaker 13: fact that it could go in any direction at any
Speaker 13: point in time. So in a market like this, we're
Speaker 13: watching sentiment indicators really closely to get a sign of
Speaker 13: whether we've seen true capitulation moments where we see indiscriminate selling,
Speaker 13: which we have found are often really great opportunities to
Speaker 13: step in on a contrarian basis, and we've seen a
Speaker 13: little bit of this, just not in a grand scale.
Speaker 13: Some of the investor surveys are telling you that investors
Speaker 13: are getting really bearish.
Speaker 6: Which is a good contraying indicator.
Speaker 13: You almost want to get bullish when everyone else is bearish.
Speaker 13: But other than that, we're not really seeing that wash
Speaker 13: out moment that really makes a lot of sense to
Speaker 13: materially leg into this market.
Speaker 6: But we are recommending.
Speaker 13: To our investors that they actively rebalance an environment like this,
Speaker 13: especially if you came to the year with a relatively
Speaker 13: balanced portfolio.
Speaker 6: Just look out of whack a little bit.
Speaker 13: So it's good opportunity to get back to your policy weights.
Speaker 3: Why do those rebalancing flows direct you people likely to
Speaker 3: go back more.
Speaker 2: Into tech or actually cut off more.
Speaker 13: Yeah, and it's really been tech that's born the brunt
Speaker 13: of this down draft. So if you had a diversified
Speaker 13: portfolio with tech in your portfolio.
Speaker 6: That's probably some of the things that are down the most.
Speaker 13: Overall, we were looking at valuations on the growth side,
Speaker 13: which is very tech heavy, was at the ninety fourth
Speaker 13: percentile to start the year, now at this seventy fifth percentile,
Speaker 13: which is a huge differential, and we only aren't seeing
Speaker 13: much of the market beyond the growth side correcting as
Speaker 13: much as that. So certainly, you know, I think investors
Speaker 13: are taking another look at the tech side, where things
Speaker 13: perhaps were looking again very expensive not too long ago,
Speaker 13: but perhaps there's opportunities now amid this downdraft.
Speaker 3: Are they going to enter in slowly and resolutely, or
Speaker 3: is there another catalyst from a fundamental basis for US
Speaker 3: and Company that will suddenly make you willing to make
Speaker 3: the trade, or is there a certain catalyst or number
Speaker 3: that you're looking from an economic perspective that will get
Speaker 3: people back in. It was weird Monday just went so
Speaker 3: to the higher side, and many trying to wonder why
Speaker 3: that happened.
Speaker 13: Yeah, investors have to be careful to catch a falling
Speaker 13: knife here.
Speaker 6: You know, if you look back in.
Speaker 13: The tech bubble, if you got too excited about tech stocks.
Speaker 13: At a fifteen percent draw down, you really would have
Speaker 13: gotten your face ripped off, as further declines would have
Speaker 13: really been painful. We think it's really important to again
Speaker 13: monitor the sentiment side, but also we think actually trade
Speaker 13: uncertainty does sort of indirectly have an impact for tech.
Speaker 13: You know, in particular, a lot of our tariffs have
Speaker 13: focused on the cash cow of companies abroad or excuse me,
Speaker 13: countries abroad like auto so far, and if they retaliate,
Speaker 13: maybe they go after our.
Speaker 6: Cash cow, which is the tech side.
Speaker 13: So until we get a little bit more clarity on tariffs,
Speaker 13: it's hard to get really excited about legging into tech
Speaker 13: to a material degree. But everyone's penciling in April second
Speaker 13: in as sort of tea day or tariff day as
Speaker 13: a time where we make it a little bit more
Speaker 13: clarity on where things go.
Speaker 3: Mike, we get fundamental clarity from companies in the next
Speaker 3: set of earning season, and I'm hearing from many a
Speaker 3: cell side note coming out at the moment that as
Speaker 3: you're going to see CEOs lean into that anxiety, they're
Speaker 3: just going to downgrade all our expectations. Really try and
Speaker 3: make sure that people have recalibrated where company growth is
Speaker 3: going to go, just so they can lock in some
Speaker 3: of this anxiety is that are we going to have
Speaker 3: a horrible set of earnings coming.
Speaker 13: We're not expecting to see a material effect just yet
Speaker 13: from tariffs or this uncertainty when it comes to earnings,
Speaker 13: but you could see a lot of guidance around that.
Speaker 13: Particularly uncertainty in and of itself can be an economic headwind.
Speaker 13: If CEOs are perhaps just going to pull back on
Speaker 13: capex or hiring plans because they just don't know the
Speaker 13: rules of the game, that's certainly a headwind. And you
Speaker 13: may start to see CEOs talk through that a little
Speaker 13: bit on their earnings calls and how they're seeing that
Speaker 13: play out.
Speaker 6: But it's probably a little too early to see sort
Speaker 6: of direct.
Speaker 13: Impacts on earnings themselves in Q two or Q one
Speaker 13: earnings in particular, that we'll get over the next call
Speaker 13: it a month or so, but watching those transfits really
Speaker 13: closely for how they're guiding the rest of the year,
Speaker 13: which could be really illuminating.
Speaker 3: Mike, I was just bringing up GameStop when it came
Speaker 3: to convertible notes, but it takes me to basically the
Speaker 3: waterfall effect of assets that you can own. Around this,
Speaker 3: we obviously lean into equities. Is there a quicker tell
Speaker 3: often on a company, But when you're managing forty seven
Speaker 3: billion dollars, I'm sure you're completely cross asset. How many
Speaker 3: are you looking to say, get into the corporate debt
Speaker 3: side of these tech companies rather than say just the
Speaker 3: equity side.
Speaker 13: Yeah, we take a diverse about approach when it comes
Speaker 13: to bonds, and we try to avoid some of the
Speaker 13: sort of financial engineering stuff that happens on the bleeding
Speaker 13: edge of financial markets, and some of this stuff out
Speaker 13: of Game Stop kind of feels like that. But when
Speaker 13: you're building a ballast in your portfolio, you typically want
Speaker 13: a good healthy size of measuries in that portfolio. But
Speaker 13: you can get to that incremental return by getting corporate
Speaker 13: credit and being smart about it, not overextending too much
Speaker 13: on your risk within your bond portfolio. But sometimes, you know,
Speaker 13: plain vanilla ends up being sort of the best thing
Speaker 13: to get that good diversification in your portfolio and take
Speaker 13: most of your risk on the equity side.
Speaker 3: Mike Reynold's it's great to catch up with you.
Speaker 10: Thank you.
Speaker 3: Len me and vice president of Investment strategy.
Speaker 2: We wish you well.
Speaker 3: Meanwhile, turning to a breakthrough in quantum computing in a
Speaker 3: world first, JP Morgan said it it's generated truly random
Speaker 3: numbers using the technology so called.
Speaker 2: Random number generators.
Speaker 3: Is could have applications for trading, for security for cryptocurrency.
Speaker 14: Now.
Speaker 3: JP Morgan, which has been making a push into the
Speaker 3: field for the last six years, used a quantum computer
Speaker 3: built by Honeywell's Continuum, according to the paper published in
Speaker 3: the journal Nature. Coming up more on crypto, the markets
Speaker 3: there are set to gain regulatory clarity under the new
Speaker 3: Trump administration. We speak with August CEO Ayakontorovich.
Speaker 2: That's next.
Speaker 4: This is Blue Meg Technology.
Speaker 3: President Trump's sec pick Paul Atkins, you can see him
Speaker 3: him now, says he hopes to create a rational crypto regulation.
Speaker 3: He's actually undergoing his nomination hearing as we speak, and
Speaker 3: you can go to Life go if you want to
Speaker 3: see all of this. But Democratic Senator Elizabeth Warren of
Speaker 3: Massachusetts or she warns that his past actions could be
Speaker 3: an indicator of a looser regulatory environment. She sat down
Speaker 3: on blooms David Goro to take a listen.
Speaker 15: I think this is entirely in keeping with what Donald
Speaker 15: Trump and Elon Musk want to see us do, and
Speaker 15: that is loosen regulations. Loosen regulations, loosen regulations. That is
Speaker 15: what Paul Adkins did. He also said repeatedly that no
Speaker 15: regulations just get in the way. Everybody needs to do
Speaker 15: whatever they want. Those big Wall Street giants. We saw
Speaker 15: the crash in two thousand and eight, and here's what
Speaker 15: happens next. After the crash, he has the chance to
Speaker 15: have a little twenty twenty hindsight. He has twenty zero hindsight.
Speaker 15: He looks back and says, no problem with having let
Speaker 15: those giant Wall Street banks run wild, and the fact
Speaker 15: that the American taxpayer had to bail them out not
Speaker 15: a problem. That's my concern. If someone has demonstrated such
Speaker 15: poor judgment, you've got to be really worried about putting
Speaker 15: them in a job where the failure to have good
Speaker 15: judgment could be like it was back then. Remember, ten
Speaker 15: million families lost their homes, millions more people lost their jobs.
Speaker 15: We watched Wall Street do a real tank then. And
Speaker 15: here's the thing about Paul Atkins. We have both his
Speaker 15: demonstrated experience, but also look at his experience overall. So
Speaker 15: his time in government is a real problem. But now
Speaker 15: he's someone who has built a very lucrative business with
Speaker 15: Potomac Partners. He charges evidently upwards of twelve hundred dollars
Speaker 15: an hour to give advice, and he says, well, I'm
Speaker 15: going to divest this interest, but he doesn't want to
Speaker 15: tell us who he's divesting to, who's buying, and for
Speaker 15: what purposes? And what are the long term plans. Because
Speaker 15: here's the deal. SEC chairmanship doesn't last forever, right, two years,
Speaker 15: four years, maybe longer? My concern is, And so what
Speaker 15: happens on the other end, does he just come right
Speaker 15: back out and instead of charging twelve hundred dollars an hour,
Speaker 15: it's now twenty four hundred dollars an hour.
Speaker 2: But it's who do you work for?
Speaker 15: And why that matters is it has an effect on
Speaker 15: the time you sit as chairman of the SEC.
Speaker 3: Senator Elizabeth Warren speaking with our own David Gura there like,
Speaker 3: let's just get more contact to the cryptoregulatory environment what
Speaker 3: it looks like under the new Trump administration. I'm joined
Speaker 3: now by August co CEO and co founder Ayakontarovich. August
Speaker 3: provides a platform to manage and trade digital assets securely
Speaker 3: and the looser perspective too loose or actually, are you
Speaker 3: thinking we will get a balance here that helps serve
Speaker 3: your growth but also serve security and the protection of consumers.
Speaker 16: Yeah, I think you know, very commonly people misunderstand where
Speaker 16: Paul Akins is coming from, assuming that you know, we're
Speaker 16: going to go from the Gary Gensler regulation by enforcement
Speaker 16: to all of a sudden, no regulation at all. And
Speaker 16: Paul Atkins is very very strict about no market manipulation
Speaker 16: and no frauds. So we're going to see KYC, KYB,
Speaker 16: We're going to see AML requirements, and that's going to
Speaker 16: be broadly across the crypto industry.
Speaker 10: And then also clear regulation.
Speaker 16: And I think if you look at you know what
Speaker 16: Senator Warren saying, before, we saw all of the American
Speaker 16: companies get pushed offshore, whereas now we're seeing an opportunity
Speaker 16: to onshore these companies, make them, you know, founded in
Speaker 16: the United States, and that's a really big shift and
Speaker 16: a big difference.
Speaker 10: And you can do that somewhere in the middle.
Speaker 3: So when she was trying to speak twice pose also
Speaker 3: the way in which he's managed to make it clear
Speaker 3: that he has no skin in the game.
Speaker 2: He has no exposure. He's selling off his assets.
Speaker 3: Are those in a position of power over in the
Speaker 3: administration and in the various agencies doing enough of that,
Speaker 3: signaling enough of that that there's transparency when it comes
Speaker 3: to crypto holdings and that not sort of managing to
Speaker 3: benefit themselves.
Speaker 10: Yeah, it's a great question.
Speaker 16: I mean, you know, the same question was asked about
Speaker 16: David Sachs as well when he divested I think it
Speaker 16: was roughly two hundred million dollars worth, and he did
Speaker 16: so at a loss. And you know, I think it's
Speaker 16: really important to your point. One, he you know, disclosed
Speaker 16: exactly what the positions are. So Atkins has two equity
Speaker 16: positions and securitize and anchorage. She has one position, a
Speaker 16: hedge fund called off Chain Capital, and he said he'd
Speaker 16: divested those. So, you know, if he gets approved on
Speaker 16: Thursday this week, and so I think we are getting
Speaker 16: the transparency we need. But the bigger question here is
Speaker 16: do we want you know, professional regulators who haven't been
Speaker 16: in this space, haven't had that dialogue running the regulation
Speaker 16: for us, or do we want people who have actually
Speaker 16: been in the trenches who have had those conversations and
Speaker 16: dealt with those problems directly to be running and making
Speaker 16: those decisions on our behalf.
Speaker 3: Okay, Therefore, what you want is someone in the job
Speaker 3: who understands the asset costs and then makes appropriately regulatory
Speaker 3: changes appropriate all you getting the transparency you need there
Speaker 3: as well. We're already seeing focus on well stable coins
Speaker 3: it feels like, and unwinding some of the latest things
Speaker 3: done by the Biden administration.
Speaker 16: Absolutely so to your point, you know, the IRS Broker
Speaker 16: Dealer Rule was just you know, voted by the Senate
Speaker 16: that passed, and so it's going to President Trump that's
Speaker 16: going to unwind. As you mentioned, the need for decentralized
Speaker 16: exchanges to file you know, a ten ninety nine for
Speaker 16: every user on the platform. It was very much you know,
Speaker 16: not applicable to the way permissionless platforms exist today.
Speaker 10: So it's great to see that happening.
Speaker 16: And from what we've heard with colleagues who are in
Speaker 16: DC every single day is that every day action is
Speaker 16: being happened around you know, we have FIT twenty one,
Speaker 16: which is currently going through Congress, that has a stable
Speaker 16: coin regulatory oversight and guidelines. We have Wyoming that just
Speaker 16: announced this week that they're going to launch a stable
Speaker 16: coins and bank and Wyoming one hundred percent. So we're
Speaker 16: seeing a lot more progress in the last you know,
Speaker 16: call four months than we've seen in the last four
Speaker 16: years combined, and so it's very exciting for any American
Speaker 16: company or anyone who's sitting in America building their company
Speaker 16: as well.
Speaker 3: Today, we've actually just got some more steer coming from
Speaker 3: Paul Atkins as he undergoes his oversight over at the Senate.
Speaker 2: Let's just take a listen into what he's just been.
Speaker 17: Saying unclear, overly politicized, complicated and burdensome regulations or stifling
Speaker 17: capital formation. While American investors are flooded with disclosures that
Speaker 17: do the opposite of helping them understand the true risks
Speaker 17: of an investment. It is time to reset priorities and
Speaker 17: return common sense the sec return.
Speaker 2: To common sense.
Speaker 3: At the Senate nomination hearing, coming from Paul Atkins, what
Speaker 3: next for the common sense you've already said, what's already
Speaker 3: underway when it comes to stable quains. What are you
Speaker 3: lacking in your part of the business to get more
Speaker 3: institution investors.
Speaker 2: Active in the crypto space.
Speaker 16: Yeah, So if you think about it, there are a
Speaker 16: couple buckets. The first is the United States, without a doubt,
Speaker 16: has been losing in the geographic regulatory space. So we
Speaker 16: have in Europe, Mica, we have in Singapore, mass and
Speaker 16: in the US we don't have anything. And so you know,
Speaker 16: it's not just about onshoring American companies that went offshore,
Speaker 16: but it's also how do we compete so that we
Speaker 16: can actually get companies from Europe who are under the
Speaker 16: micro registration to come to the United States as well
Speaker 16: and build here in the United States. The other thing
Speaker 16: too is, you know, how do we treat clients, how
Speaker 16: do we structure our ENTI A large part that hasn't
Speaker 16: been discussed for token companies specifically is all token foundations
Speaker 16: are typically under BBIS or the kmans, and a big
Speaker 16: discussion is how do we bring that to the US.
Speaker 16: How do we create launch foundations token foundations in the
Speaker 16: United States with clear guidelines.
Speaker 3: And why would we want token foundations launching in the
Speaker 3: United States? Just reitroit the positive nature of this for
Speaker 3: investors and entrepreneurs.
Speaker 16: Who are watching this, We're looking for transparency. We want
Speaker 16: to see exactly how these companies operate. We want to
Speaker 16: be able to go through, you know, tax filings if
Speaker 16: we need to, and audit them as well, so you know,
Speaker 16: it gives you the transparency everyone's asking for. But to
Speaker 16: do that you have to onshore the company first, and
Speaker 16: in order to do that, you need the clear regulation.
Speaker 16: So I think we're definitely seeing path forward with Atkins.
Speaker 10: It's going to be really exciting.
Speaker 16: To make you know, New York, the United States the
Speaker 16: crypto capital. We are for finance, it should be for
Speaker 16: crypto and it's one step in that direction.
Speaker 2: I kind of rich.
Speaker 3: I said, great to have you on the show. Thank you,
Speaker 3: August co CEO. There Jiang Yi Ming, the founder of
Speaker 3: TikTok's owner Byte Dance. He's become the China's wealthiest person
Speaker 3: for the first time. He topped the list on Wednesday,
Speaker 3: surpassing ten Cents co founder among others, with a fifty
Speaker 3: seven and a half billion dollar fortune. Jang's wealth jumped
Speaker 3: by more than ten billion dollars after Bloomberg analyzed the
Speaker 3: valuations of investors like Blackrock, fidelityt Rope price and the
Speaker 3: company's plans to buy back employee stock, and evaluation of
Speaker 3: three hundred and twelve billion dollars. Now all of this comes,
Speaker 3: of course, as the fate of TikTok in the United
Speaker 3: States remains still very unclear, but President Trump said he
Speaker 3: would consider lowering tariff rates in post on China to
Speaker 3: secure Beijing support for the sale of TikTok's US operations
Speaker 3: to an American company. Bloomberg's Stephanie Hi joins us some
Speaker 3: more so, he's actually using TikTok in the broader tip
Speaker 3: for tat debate.
Speaker 10: When it comes to.
Speaker 14: Trade, it is certainly an interesting time. You know, we're
Speaker 14: looking at next week being a very big week for
Speaker 14: tariffs and TikTok. April second is the day in which
Speaker 14: Donald Trump has said that he's going to place most
Speaker 14: of his reciprocal tariffs, and of course, the deadline to
Speaker 14: find a deal to sell TikTok is on April fifth,
Speaker 14: before it faces a shutdown. And so one of the
Speaker 14: things that Trump has floated, as you noted, is a
Speaker 14: potential reprieve for China if they are to agree to
Speaker 14: a deal. And some of the complications behind this include
Speaker 14: the fact that the Chinese government and byte Dance are
Speaker 14: pushing to keep the algorithm within Chinese hands. But that
Speaker 14: is something that many lawmakers are saying would not comply
Speaker 14: with the US law. And so it seems like there's
Speaker 14: sort of at an impasse in what Trump had floated
Speaker 14: just yesterday seems to be one of the ways in
Speaker 14: which he's trying to work around that.
Speaker 3: And yet the algorithm in Chinese hands does seem to
Speaker 3: be one of the potential deals being debated by the
Speaker 3: White House. It looks as though there's this ongoing narrative
Speaker 3: that Oracle founder Larry Ellison maybe he could be persuaded
Speaker 3: to take a little piece of TikTok the US entity
Speaker 3: and remain a security guard on it ultimately, but also
Speaker 3: allow the algorithm to stay in.
Speaker 14: China, certainly, and that is one of the deals that
Speaker 14: has been floated. We've been told that from sources familiar
Speaker 14: that there is a deal that has been proposed that
Speaker 14: would allow Oracles to have a minority stake and to
Speaker 14: continue storing the US data as it already has. And
Speaker 14: also the other aspect of that deal is to allow
Speaker 14: China to keep the algorithm.
Speaker 10: And now this is.
Speaker 14: Something that has caused some pushback among Republican lawmakers who
Speaker 14: say that that doesn't comply with the law, and so
Speaker 14: it's not actually clear where this deal lands and whether
Speaker 14: or not the administration would be okay taking this deal
Speaker 14: at its face or going to China and asking to
Speaker 14: negotiate with what we've been currently shown.
Speaker 3: As we know, there other public bid is out there.
Speaker 3: One of them is Fragment Court Junior and Alexis Ohanian,
Speaker 3: and we know that their bid doesn't involve the algorithm,
Speaker 3: and they want to have a whole new focus on
Speaker 3: social media who are in the United States. But the
Speaker 3: value in many ways is in the algorithm, but also
Speaker 3: the value is to be determined in some ways by
Speaker 3: byte dance itself. But also the Chinese government. Have we
Speaker 3: got any indication of whether they're willing to go through
Speaker 3: with some sort of deal.
Speaker 14: What sources have told us so far is that you know,
Speaker 14: they want that China wants to keep the algorithm and
Speaker 14: stop essentially that it would be a non starter to
Speaker 14: facilitate a deal that does not include the algorithm if
Speaker 14: remaining in their hands. Now, that seems to be a
Speaker 14: problem given the letter of the law, and so Trump's
Speaker 14: proposal to lessen the tariffs on China seems to be
Speaker 14: one of the ways in which he's trying to get
Speaker 14: everyone to the table and say, hey, you know we
Speaker 14: have to make a deal, and you know we need
Speaker 14: to work past the sticking point in the negotiation.
Speaker 3: A story that's going to continue to evolve over the
Speaker 3: next week. Bloomberg, Stephanie Lie, thanks so much breaking it
Speaker 3: down for us.
Speaker 2: Now, that does it for this edition of Bloomberg Technology.
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