WEBVTT - Trump Says Intel CEO ‘Conflicted’ and Should Resign 0:00:00.080 --> 0:00:12.960 Bloomberg Audio Studios, Podcasts, radio news. Bloomberg Tech is live 0:00:13.000 --> 0:00:16.799 from coast to coast with Caroline Hyde in New York 0:00:17.079 --> 0:00:19.920 and Ev Love in San Francisco. 0:00:21.400 --> 0:00:23.079 This is Bloomberg Tech coming up. 0:00:23.120 --> 0:00:27.400 President Trump calls the Intel CEO highly conflicted and urges 0:00:27.440 --> 0:00:31.400 the resignation, causing shares to slump. Plus, Apple announces it's 0:00:31.440 --> 0:00:34.479 added one hundred billion dollar US investment as it dodges 0:00:34.560 --> 0:00:35.160 Chip Harris. 0:00:35.360 --> 0:00:36.639 We discussed the likelihood of. 0:00:36.560 --> 0:00:40.000 A US produced iPhone, and a number of earnings are 0:00:40.040 --> 0:00:43.040 out our discussions with the CEOs of Lyft, DraftKings, and 0:00:43.120 --> 0:00:44.920 due Lingo throughout the hour. 0:00:45.000 --> 0:00:47.080 But first we dive deep. 0:00:47.159 --> 0:00:49.720 Into our top story, which is Intel shares currently up 0:00:49.720 --> 0:00:51.879 by two and quarter percent. They were lower by more 0:00:51.920 --> 0:00:54.880 than five percent in early trading. All of this as 0:00:54.920 --> 0:00:58.760 we see President Trump call for a resignation of lit Boutanna, 0:00:58.800 --> 0:01:01.160 only just took over in March twenty twenty five. This 0:01:01.280 --> 0:01:04.880 following Tom Cotton, the Republican senator, deep diving in his 0:01:05.000 --> 0:01:08.800 relations lip Butan's to China. Let's get the context for you. 0:01:08.840 --> 0:01:12.760 Peter Elstrom joins us for more and just we see 0:01:12.800 --> 0:01:15.720 that there's a concern about his CEO role at Cadence 0:01:15.800 --> 0:01:19.000 Design and their relationships with China, but it was well 0:01:19.080 --> 0:01:21.840 known that he's been a long term investor in China himself. 0:01:21.920 --> 0:01:25.720 Peter, Yeah, this was certainly a big surprise. I don't 0:01:25.720 --> 0:01:28.600 think anybody saw this coming, certainly not in the tech industry. 0:01:28.800 --> 0:01:31.240 Trump comes out and he calls for the resignation of 0:01:31.319 --> 0:01:34.160 Lip Bhutan, who, as you say, just arrived in March 0:01:34.200 --> 0:01:37.600 in that CEO role. He'd clearly been vetted very much 0:01:37.680 --> 0:01:40.440 by the board before he got that position. Now what 0:01:40.480 --> 0:01:43.480 they're talking about, Tom So, Trump did not explain exactly 0:01:43.480 --> 0:01:46.080 what he's talking about with these conflicts, but as you say, 0:01:46.080 --> 0:01:49.640 it comes in the context of Tom Cotton, the Republican senator, 0:01:49.720 --> 0:01:53.280 asking questions about Tan's ties to China. In particular, there's 0:01:53.320 --> 0:01:56.120 Cadence Design System, the company that Tan ran for more 0:01:56.160 --> 0:01:58.960 than a decade. They have done business with China. In fact, 0:01:58.960 --> 0:02:02.160 they pled guilty to doing some business with a university 0:02:02.160 --> 0:02:05.880 that's affiliated with the People's Liberation Army there. In addition 0:02:05.960 --> 0:02:08.920 to that, Tan worked for a long time in venture capital, 0:02:08.919 --> 0:02:12.600 making investments in companies, including companies in China. He made 0:02:12.600 --> 0:02:14.919 some investments in Smike in particular, which is sort of 0:02:14.960 --> 0:02:18.040 the most advanced chip maker within China. So Cotton was 0:02:18.040 --> 0:02:22.000 asking questions about how those investments are doing it at 0:02:22.000 --> 0:02:24.280 this point, if he still has any conflicts of interest. 0:02:24.560 --> 0:02:27.040 Trump didn't go into those details in particular, but he 0:02:27.080 --> 0:02:29.519 did flag them. Now, it's important to say what Intel 0:02:29.560 --> 0:02:32.000 has said in the past. They've said that they value 0:02:32.160 --> 0:02:36.239 national security, and Tan is certainly aligned with US interests 0:02:36.520 --> 0:02:39.840 in the region. You've got to imagine that the board 0:02:39.840 --> 0:02:42.400 of Intel is going to come back pretty forcefully in 0:02:42.440 --> 0:02:45.240 this situation because they're the ones that hired Tan in 0:02:45.280 --> 0:02:45.840 the first place. 0:02:45.960 --> 0:02:48.840 And we're already seeing the statement from Intel in response 0:02:48.919 --> 0:02:53.160 to Republican Senator Cotton's query saying, Intel and mister Tan 0:02:53.320 --> 0:02:56.280 and deeply committed to the national security of the United 0:02:56.280 --> 0:02:58.120 States and the integrity of our role in the US 0:02:58.200 --> 0:03:02.240 defense ecosystem. Because this is where the question lies as 0:03:02.280 --> 0:03:05.200 someone who potentially and we get to hear whether he 0:03:05.280 --> 0:03:08.840 really has disclosed how much of his venture investments he 0:03:08.880 --> 0:03:11.840 still holds in certain Chinese startups and indeed he had 0:03:11.880 --> 0:03:17.560 prior board experience at Smith. What are the implications for 0:03:17.600 --> 0:03:20.880 the investment which Tom Cotton makes of eight billion dollars 0:03:20.880 --> 0:03:25.440 of US chip funding into Intel to manufacture locally for 0:03:25.639 --> 0:03:28.880 potentially the US government and indeed the Department of Defense. 0:03:29.760 --> 0:03:32.000 Yeah, there are a couple of very big questions here. 0:03:32.080 --> 0:03:35.280 I mean, first of all, Intel's board housted Pat Gelsinger, 0:03:35.320 --> 0:03:38.000 the previous CEO. Last year they brought in lit Bhutan 0:03:38.040 --> 0:03:40.560 as that replacement after a long search. They looked at 0:03:40.600 --> 0:03:42.800 a bunch of different candidates, and the best and the 0:03:42.800 --> 0:03:44.840 brightest in the chip industry are not dying to take 0:03:44.880 --> 0:03:48.120 on Intel. It's a very difficult turnaround project at this point. 0:03:48.320 --> 0:03:50.480 In addition to that, Intel is supposed to be a 0:03:50.520 --> 0:03:55.400 cornerstone of this Washington led effort to rebuild the semiconductor 0:03:55.440 --> 0:03:58.560 industry in the United States. Of course it's American. They 0:03:58.600 --> 0:04:00.480 want it to be part of this whole effort to 0:04:00.520 --> 0:04:02.440 bring chip manufacturing. 0:04:01.800 --> 0:04:02.920 Back to the United States. 0:04:03.080 --> 0:04:06.720 They've also given money to other companies, including Taiwan Semiconductor, 0:04:07.000 --> 0:04:10.800 Samsung Electronics. But Intel was supposed to be really the cornerstone. 0:04:10.920 --> 0:04:13.000 They were supposed to do some work with the military 0:04:13.040 --> 0:04:15.040 in particular, as you mentioned, they were in line to 0:04:15.040 --> 0:04:18.520 get about eight billion dollars, but it's unclear exactly where 0:04:18.520 --> 0:04:20.359 that money is going to go. At this point, and 0:04:20.400 --> 0:04:21.960 one of the issues for the board is going to 0:04:21.960 --> 0:04:24.400 be if they're going to stand behind Tan and support 0:04:24.480 --> 0:04:27.359 him as CEO, is that money coming from the federal 0:04:27.400 --> 0:04:29.240 government going to be in jeopardy. 0:04:29.760 --> 0:04:32.880 And the context also being that Libhutan was on the 0:04:32.880 --> 0:04:34.599 board of Intel for a very long time, so they 0:04:34.640 --> 0:04:38.000 were well aware of all of his prior history. For 0:04:38.080 --> 0:04:41.280 what's happened more recently, Peter is the articulation from Lipbutan 0:04:41.400 --> 0:04:44.720 himself that he might not go along with fabrication of 0:04:45.400 --> 0:04:48.880 chips here in the US much longer anyway, right. 0:04:48.800 --> 0:04:53.240 Right, This context is important. Also, his predecessor, Gelsinger had 0:04:53.279 --> 0:04:57.919 pushed very hard to rebuild Intel's manufacturing expertise. They're in 0:04:57.960 --> 0:05:00.839 the process right now trying to develop up new techniques 0:05:00.839 --> 0:05:03.200 for manufacturing. They appear to be making quite a bit 0:05:03.240 --> 0:05:06.240 of progress on that front now. Tannas said he doesn't 0:05:06.279 --> 0:05:08.520 believe if you build it, they will calm. He's referring 0:05:08.560 --> 0:05:11.880 to this whole foundry business where Gelsinger wanted to compete 0:05:11.920 --> 0:05:15.760 pretty directly with TSMC and making customized chips for the 0:05:15.960 --> 0:05:20.960 likes of Apple and Nvidia. In particular, Intel's not made 0:05:20.960 --> 0:05:23.400 a whole lot of progress on that front. So Tanna's 0:05:23.440 --> 0:05:26.040 not has said he's not necessarily going to stick with 0:05:26.080 --> 0:05:28.599 that strategy that of course kind of runs counter to 0:05:28.640 --> 0:05:31.840 the Washington effort to try to rebuild the US chip industry. 0:05:32.080 --> 0:05:34.880 If he's tentative with some of his investments, that maybe 0:05:35.000 --> 0:05:37.039 counter to their priorities at this point. 0:05:37.400 --> 0:05:40.479 Peter Els from Brilliant Research, we thank you very much. 0:05:40.720 --> 0:05:44.320 Let's stick with well the Trump focus on semiconductors right 0:05:44.360 --> 0:05:46.680 now from Morblue Megs. Tyler Kendall joins us from the 0:05:46.720 --> 0:05:49.400 White House because President Trump to that end, we're just 0:05:49.480 --> 0:05:52.080 hearing how Intel fits into the broader idea of bringing 0:05:52.120 --> 0:05:56.039 manufacturing back to the United States. A big hefty tariff 0:05:56.360 --> 0:06:02.040 being promised on semiconductors unless you I'm built in the US, Tila. 0:06:02.760 --> 0:06:05.880 Right exactly, Caroline, President Trump declaring his plans for a 0:06:05.960 --> 0:06:10.200 one hundred percent tariff on chips. Unless the understanding is 0:06:10.480 --> 0:06:13.120 a company makes a similar investment commitment to what we 0:06:13.160 --> 0:06:16.440 saw yesterday when Apple's Tim Cook was in the Oval Office, 0:06:16.480 --> 0:06:19.360 a pledge to at least move part of their manufacturing 0:06:19.440 --> 0:06:23.480 reshore supply chains in the US, then those companies would 0:06:23.480 --> 0:06:25.560 be exempt from this chip tariff. 0:06:25.560 --> 0:06:27.320 But there's a few different important. 0:06:26.880 --> 0:06:29.440 Distinctions that we have to make, including as you well know, 0:06:29.520 --> 0:06:33.240 that these big tech companies have been experiencing at least 0:06:33.240 --> 0:06:36.719 a temporary reprieve from tariff since April when the administration 0:06:36.800 --> 0:06:39.800 first launched that Section two thirty two investigation into the 0:06:39.960 --> 0:06:44.680 entire chip supply chain, which extended to those consumer electronics 0:06:44.680 --> 0:06:47.320 for example. So as we wait for that formal investigation 0:06:47.400 --> 0:06:50.120 to wrap up and a formal announcement on the teriffs, 0:06:50.160 --> 0:06:51.880 one of the big questions here is whether or not 0:06:51.920 --> 0:06:53.960 that reprieve is going to extend to some of those 0:06:54.000 --> 0:06:57.240 other items that have been under investigation, like what chips 0:06:57.279 --> 0:07:00.880 go into such as smartphones or cars. So the conversation 0:07:01.000 --> 0:07:03.039 is going to start to turn to whether or not 0:07:03.040 --> 0:07:05.440 there's going to be any sort of carve out here, 0:07:05.640 --> 0:07:09.000 such as Apple with its iPhone for example, because those 0:07:09.080 --> 0:07:12.480 are expected to face a separate levee and Caroline, we 0:07:12.560 --> 0:07:15.120 know that the industry has been lobbying at this White House. 0:07:15.160 --> 0:07:18.080 Of course, Tim Cook was here yesterday, but then just 0:07:18.240 --> 0:07:21.480 hours after that visit, we had Nvidia's Jensen Wong also 0:07:21.560 --> 0:07:24.360 meeting here with President Trump at the White House, and 0:07:24.480 --> 0:07:26.800 the White House says that cumulative, the total that they've 0:07:26.800 --> 0:07:29.520 gone an investment when it comes to these big tech 0:07:29.560 --> 0:07:33.400 companies now is over one trillion dollars in pledges. 0:07:33.320 --> 0:07:36.120 And a lot of that money coming from big Asian 0:07:36.280 --> 0:07:40.640 tech builders like TSMC in Arizona, for example. We've also 0:07:41.000 --> 0:07:44.680 understand from leaders in Korea that they think Samsung and 0:07:44.720 --> 0:07:47.640 maybe sk Heinex have some sort of carve out here. Tyler, 0:07:47.680 --> 0:07:51.080 We're really gettingdrip fed information right exactly. 0:07:51.120 --> 0:07:53.400 And at that point it looks like really most of 0:07:53.480 --> 0:07:56.760 the tech sector is covered here you had mentioned. So 0:07:56.880 --> 0:08:01.400 if we just show the companies that could be facing 0:08:01.440 --> 0:08:05.360 this exemption, Apple and Nvidia, TSMC, South Korea, Samsung and 0:08:05.520 --> 0:08:08.320 sk Heinex, and really this has been a big push 0:08:08.360 --> 0:08:11.080 from this administration from the beginning. We saw a lot 0:08:11.120 --> 0:08:14.720 of these tech CEOs attend President Trump's inauguration as just 0:08:14.840 --> 0:08:17.520 one key example here. So that's why it's really interesting 0:08:17.560 --> 0:08:20.000 to also see this dynamic that's starting to merge with 0:08:20.040 --> 0:08:23.120 the Intel CEO and how President Trump really does feel 0:08:23.200 --> 0:08:26.280 heavily involved when it comes to the private sector and 0:08:26.360 --> 0:08:29.480 trying to get to this ultimate goal of reshoring manufacturing. Though, 0:08:29.520 --> 0:08:30.960 of course, as you well know and I know you're 0:08:31.000 --> 0:08:34.280 about to discuss. This does fall short of the administration's 0:08:34.320 --> 0:08:39.319 initial push here to reshore manufacturing completely into the US, 0:08:39.360 --> 0:08:42.120 and we know that's going to be pretty inheasible when 0:08:42.120 --> 0:08:45.160 it comes to the financials, but also just the timeline, 0:08:45.200 --> 0:08:48.360 which makes that Intel dynamic even more interesting, since we 0:08:48.400 --> 0:08:50.440 do know that we need their chips to make this happen. 0:08:50.840 --> 0:08:53.600 Weaving it beautifully together, Tyler Kendall, we thank you from 0:08:53.640 --> 0:08:56.120 the White House. Let's talk some more than about the 0:08:56.160 --> 0:08:59.199 impact of TARIS on big tech after Donald Trump, of 0:08:59.240 --> 0:09:02.160 course promised to exempt companies like Apple, as Tinna mentioned 0:09:02.440 --> 0:09:05.040 that move production back to the US. 0:09:05.679 --> 0:09:08.720 We're doing these things now in the United States instead 0:09:08.720 --> 0:09:13.520 of other countries, far away countries. This is a significant 0:09:13.559 --> 0:09:17.200 step toward the ultimate goal of ensuring that iPhone sold 0:09:17.280 --> 0:09:20.240 in the United States of America also are made in 0:09:20.320 --> 0:09:23.960 America with the mass infusion of capitalists. Announcing today, Apple 0:09:24.000 --> 0:09:27.400 will also build a two hundred and fifty thousand square 0:09:27.440 --> 0:09:32.040 foot server manufacturing facility in Houston and avest billions of 0:09:32.040 --> 0:09:35.400 dollars to construct data centers across the country from North 0:09:35.400 --> 0:09:38.240 Carolina to Iowa to Oregon. 0:09:38.800 --> 0:09:43.040 Currently no Melanas Prince Well Analystic Creative Strategies joins us 0:09:43.280 --> 0:09:45.760 Hot on the heels of that moment of Tim Cook 0:09:45.840 --> 0:09:48.920 in the White House, one hundred billion dollars extra being 0:09:48.920 --> 0:09:51.400 committed that six hundred billion dollars in total. What did 0:09:51.440 --> 0:09:54.959 you make of the allocation towards glass, for example, particularly 0:09:54.960 --> 0:09:56.400 in Kentucky and United States. 0:09:57.559 --> 0:10:00.800 I think Tig Cook has been very strategic about giving 0:10:01.120 --> 0:10:04.520 the administration what they want, which is investment in the US, 0:10:04.600 --> 0:10:08.120 but doing so in a way that is feasible. So 0:10:08.320 --> 0:10:12.000 it's still not about bringing production of the iPhone back, 0:10:12.040 --> 0:10:15.200 but really leaning into some of the partners like Corning 0:10:16.000 --> 0:10:19.960 and manufacture. The mastery of this is not just about 0:10:20.000 --> 0:10:23.719 the iPhone and Apple watches that are sold in the 0:10:23.800 --> 0:10:29.400 States that will source glass from cornering in Kentucky, but internationally. 0:10:29.480 --> 0:10:35.000 So is given that extra part to the administration about saying, okay, 0:10:35.040 --> 0:10:40.200 we are manufacturing here and shipping outside the US the 0:10:40.320 --> 0:10:43.920 glass that goes in every iPhone and every Apple Watch. 0:10:44.480 --> 0:10:47.680 It's interesting we are seeing Tim Cook speaking there, but 0:10:47.920 --> 0:10:51.439 he was previously holding a box, a box that contained 0:10:51.920 --> 0:10:55.880 circular Corning glass plaque engraved for the President's name, mounted 0:10:56.040 --> 0:10:59.480 onto a twenty four carrot gold stand, which we understand 0:10:59.520 --> 0:11:02.400 is also just signed by an Apple designer who's previously 0:11:02.400 --> 0:11:03.680 a US marine Carolina. 0:11:04.440 --> 0:11:07.600 This was politicking at its best from Tim Cook. 0:11:08.480 --> 0:11:13.480 Absolutely, there was a lot of political theater during the 0:11:13.520 --> 0:11:18.160 press conference. It was about really making sure that Apple 0:11:18.280 --> 0:11:21.280 doesn't get into DII of a cyclone when he comes 0:11:21.320 --> 0:11:25.640 to tariffs, and really lifting what is possible. So for 0:11:25.679 --> 0:11:30.880 instance the mention of Houston and the server factory. Again, 0:11:31.040 --> 0:11:34.240 we are not talking about bringing iPhone or Mac for 0:11:34.320 --> 0:11:37.160 that matter, or anything else back to the US. We 0:11:37.240 --> 0:11:40.240 are trying to invest where it makes sense from a 0:11:40.280 --> 0:11:44.720 business perspective for Apple, while creating some jobs, but most 0:11:44.760 --> 0:11:48.520 importantly bringing money back to the US and letting the 0:11:48.559 --> 0:11:50.880 administration then talk about it. 0:11:51.520 --> 0:11:54.600 But we actually heard President Trump talk about it with 0:11:54.679 --> 0:11:56.880 the words coming out of his mouth that was the 0:11:57.000 --> 0:12:01.960 long term goal of having US so old iPhones made 0:12:02.559 --> 0:12:06.199 in the US. It's just the glass enough and maybe 0:12:06.240 --> 0:12:08.679 the odd wafer and semiconductor. 0:12:09.559 --> 0:12:10.440 Is enough for now. 0:12:10.880 --> 0:12:14.840 The long term is really critical here because it will 0:12:15.000 --> 0:12:18.880 take time. The supply chain, most of the supply chain 0:12:19.000 --> 0:12:21.480 is still not in the US of this skill sets 0:12:21.480 --> 0:12:25.240 that we need from from just a factory perspective and 0:12:25.360 --> 0:12:28.320 workers is not in the US, and the cost, of course, 0:12:28.400 --> 0:12:32.720 so is giving enough during the four year of the administration, 0:12:33.280 --> 0:12:38.880 and you know, to placate maybe the demands and continue 0:12:38.920 --> 0:12:40.520 to invest in America. 0:12:40.960 --> 0:12:43.760 Interesting that skill set, you say, And they're actually Apple 0:12:43.840 --> 0:12:47.280 investing in Detroit in particular on sort of a manufacturing 0:12:47.360 --> 0:12:52.000 academy for training people and companies in terms of manufacturing locally. 0:12:52.040 --> 0:12:54.760 But going to the intricacy. 0:12:54.360 --> 0:12:57.360 Is of supply chain here, Carolina, you're getting glass from 0:12:57.400 --> 0:13:00.680 the US in Kentucky and maybe some wafer in the future, 0:13:00.920 --> 0:13:03.160 and then you're shipping that back to China to then 0:13:03.200 --> 0:13:06.719 have it all put together and neatly built and then ship. 0:13:06.480 --> 0:13:08.400 Back to the US because feels very expensive. 0:13:09.960 --> 0:13:12.960 It's cheaper than not having it done here, and that's 0:13:13.040 --> 0:13:16.120 the problem. We don't have the facilities yet. And I 0:13:16.840 --> 0:13:21.160 think it's interesting, as you pointed out the Detroit manufacturing 0:13:21.280 --> 0:13:26.160 learning facility that Apple is setting up, because maybe the 0:13:26.720 --> 0:13:31.679 point is to create different sets of skills that are 0:13:31.760 --> 0:13:35.520 linked to automation, and that is where maybe with AI 0:13:35.640 --> 0:13:39.680 and automation, we will see manufacturing being brought back to 0:13:39.840 --> 0:13:43.480 the US. But yeah, shipping back and forth is not ideal. 0:13:43.600 --> 0:13:46.679 But the pieces that you're shipping back and forth, and 0:13:46.720 --> 0:13:50.559 where the rest of the iPhone is is still in Asia. 0:13:50.760 --> 0:13:53.680 Briefly, I lean into your supply chain expertise here because 0:13:53.679 --> 0:13:56.520 you don't just cover Apple, a plethora of companies. What 0:13:56.559 --> 0:13:58.520 do you make of this threat for one hundred percent 0:13:58.559 --> 0:14:01.680 tariff and semiconductors and who that ultimately implicates if they 0:14:01.679 --> 0:14:02.480 don't get a carve out. 0:14:03.600 --> 0:14:06.880 Well, obviously that is you know, we've seen the impact 0:14:07.040 --> 0:14:10.880 of the towers so far on earnings and we're still 0:14:10.880 --> 0:14:14.520 in the middle of earning season. But what is important 0:14:14.679 --> 0:14:18.400 that we don't have a clarification is what that building 0:14:18.880 --> 0:14:22.520 in the US means. How much investment is a company 0:14:22.680 --> 0:14:26.040 going to have to make in the US to not 0:14:26.400 --> 0:14:31.840 fall into this tariff promise of one hundred percent? And 0:14:31.960 --> 0:14:37.400 Apple seems to have made enough. Nvidia is also investing here, 0:14:37.520 --> 0:14:40.280 and I'm sure others like DS and C have done 0:14:40.560 --> 0:14:41.760 will continue to do so. 0:14:42.880 --> 0:14:44.960 Krolyn Iven Anazy Granula. 0:14:45.080 --> 0:14:50.240 We thank you creative Strategies. 0:14:53.240 --> 0:14:54.120 Shares of Lift. 0:14:54.400 --> 0:14:56.920 Let's check in on them because the company reported earnings 0:14:57.000 --> 0:15:01.560 after the bell yesterday, including record number of rides completed. 0:15:02.000 --> 0:15:04.200 We're currently up three and a half percent. Lift CEO 0:15:04.280 --> 0:15:06.920 David Richard joins us to talk us through the results 0:15:06.960 --> 0:15:09.560 that for some there was a bit of something for everyone. 0:15:10.040 --> 0:15:13.120 The revenue number behave perhaps a little bit shy of expectations. 0:15:13.240 --> 0:15:15.400 But the sheer number of people riding with you at 0:15:15.400 --> 0:15:16.880 a record what's driving that? 0:15:17.000 --> 0:15:20.920 David, Yeah, I mean I love that fact, the number 0:15:20.920 --> 0:15:23.800 of the sheer number of people riding with us, because 0:15:23.840 --> 0:15:25.960 it shows that we're doing something right right. So I've 0:15:25.960 --> 0:15:30.480 been saying for a long time customer obsession drives profitable growth. 0:15:30.560 --> 0:15:33.360 We're now profitable. We're growing, you know, as is our 0:15:33.400 --> 0:15:35.560 ninth consecutive quarter of double digit growth. 0:15:36.040 --> 0:15:38.520 And in terms of customer adoption, you know, we've never 0:15:38.520 --> 0:15:39.600 had more riders. 0:15:39.280 --> 0:15:41.880 And drivers on the platform. So you know what's driving it. 0:15:41.880 --> 0:15:45.040 It's innovations like Lift Silver, It's partnerships like our Door 0:15:45.080 --> 0:15:47.560 Dash partnership. We just announced a new partnership with the 0:15:47.680 --> 0:15:50.120 United A lot of the sort of ecosystem work we're 0:15:50.120 --> 0:15:53.160 doing is really helping us grow faster than ever. 0:15:53.640 --> 0:15:56.040 Let's talk about partnerships when it comes to autonomous because 0:15:56.040 --> 0:15:58.040 that's where the future, where the puck is moving. 0:15:58.440 --> 0:15:59.920 How are you ensuring that you're moving with. 0:16:00.120 --> 0:16:02.920 And taking on what seems to be future competition coming 0:16:02.920 --> 0:16:05.320 from I don't know, the likes of Weimo, but also 0:16:05.360 --> 0:16:06.080 even a Tesla. 0:16:06.920 --> 0:16:08.480 Yeah, you know what, I don't think of it as 0:16:08.560 --> 0:16:11.400 future competition. I mean, of course there'll be competitive skirmishes, 0:16:11.440 --> 0:16:15.280 but big picture, as self driving cars come onto our platform, 0:16:15.480 --> 0:16:17.720 it's going to expand the marketplace. And we can see 0:16:17.720 --> 0:16:20.000 that already even in the cities where self driving cars 0:16:20.000 --> 0:16:22.520 are operating in the US right now, we're seeing something 0:16:22.600 --> 0:16:25.200 like five x the growth of cities where they're not operating. 0:16:25.280 --> 0:16:26.160 So because what. 0:16:26.400 --> 0:16:29.240 They're safe, they're interesting, they're kind of you know, they're novel, 0:16:29.400 --> 0:16:32.280 they're reliable. In terms of partnerships, we have a couple 0:16:32.320 --> 0:16:34.560 of great partnerships. We have one with main Mobility, which 0:16:34.640 --> 0:16:37.120 launches officially this summer in Atlanta, so you can take 0:16:37.160 --> 0:16:39.720 a self driving car if you live in Atlanta starting 0:16:39.760 --> 0:16:40.680 in a little over. 0:16:40.520 --> 0:16:41.360 A month, we hope. 0:16:41.480 --> 0:16:43.680 And then big picture, we just signed a big agreement 0:16:43.720 --> 0:16:45.880 with Baidu, who is one of the world's largest, probably 0:16:45.880 --> 0:16:50.080 the world's largest self driving car company, to expand into Europe, 0:16:50.120 --> 0:16:52.000 into a couple countries in Europe. So a lot of 0:16:52.000 --> 0:16:54.200 action going on in the self driving world. Obviously still 0:16:54.280 --> 0:16:57.000 very early, but we see huge opportunity for us in 0:16:57.000 --> 0:16:57.360 the future. 0:16:57.440 --> 0:17:01.520 Yeah, Plan Germany UK twenty twenty six with regulatory approvals 0:17:02.080 --> 0:17:05.119 speak to that international growth that you've really brought to 0:17:05.160 --> 0:17:07.240 bear of late. How much is that a winning formula 0:17:07.280 --> 0:17:08.520 for revenue for profitability? 0:17:09.520 --> 0:17:12.280 Yeah, for both, I think, and actually for resilience too. 0:17:12.440 --> 0:17:14.240 You know, one of the things that I've seen over 0:17:14.240 --> 0:17:15.679 the last two and a half years since I've been 0:17:15.720 --> 0:17:18.840 in this job is being so focused on North America 0:17:18.880 --> 0:17:21.600 has been great because it's allowed us to really innovate 0:17:21.680 --> 0:17:24.800 and drive the industry forward. But now that we're in 0:17:24.840 --> 0:17:28.080 a very strong position, we can afford to and frankly, 0:17:28.600 --> 0:17:30.480 you know, sort of our customers want us to be 0:17:30.520 --> 0:17:33.200 a more global company. So we just acquired a company 0:17:33.200 --> 0:17:36.639 called free Now in Europe. It's a taxi focused aggregator. 0:17:36.680 --> 0:17:38.280 You know, the taxis in Europe, of course you know 0:17:38.320 --> 0:17:40.240 this well, are sort of a higher end product than 0:17:40.240 --> 0:17:42.119 people might think in the United States, and so it 0:17:42.119 --> 0:17:44.360 will allow us to have a footprint across Europe. Then, 0:17:44.400 --> 0:17:46.600 when we tie it back to your earlier question about 0:17:46.600 --> 0:17:49.840 self driving, as self driving comes to Europe and Europe 0:17:49.880 --> 0:17:52.720 is a little bit behind the United States. The relationship 0:17:52.760 --> 0:17:54.800 that we now have with regulators and of course with 0:17:54.840 --> 0:17:57.120 millions of customers is really going to help us form 0:17:57.160 --> 0:17:59.240 a platform that we can build on to bring self 0:17:59.320 --> 0:18:02.240 driving cars to the UK and Germany and hopefully beyond. 0:18:02.760 --> 0:18:05.840 Okay, So when you're leaning into some of these expansions 0:18:05.840 --> 0:18:08.000 more broadly, will there be more. 0:18:08.000 --> 0:18:09.840 M and A to play here? You've already done it 0:18:09.840 --> 0:18:10.200 in Europe. 0:18:10.200 --> 0:18:11.719 I knew you've got to integrate, but would you look 0:18:11.760 --> 0:18:12.560 further afield too? 0:18:13.920 --> 0:18:14.320 Maybe? 0:18:14.440 --> 0:18:17.600 You know, you never say never about this sort of thing, 0:18:17.880 --> 0:18:20.280 you know. I think we're in a very strong position 0:18:20.480 --> 0:18:23.240 now to do this kind of work. But as you say, 0:18:23.280 --> 0:18:26.080 the first order business for us is that integration work. 0:18:26.119 --> 0:18:28.639 And we just closed the free Now deal last week. 0:18:28.840 --> 0:18:30.760 I was actually in Barcelona the week before with a 0:18:30.800 --> 0:18:33.919 team there. They're so excited to get started and already now, 0:18:33.960 --> 0:18:36.840 if you open the free now app in Europe, you'll 0:18:36.840 --> 0:18:39.199 get a prompt that says, you know, we're a partnership 0:18:39.400 --> 0:18:41.920 with Lyft and vice versa. If you open the lift 0:18:41.920 --> 0:18:44.240 app in Europe, maybe more importantly, you'll be directed to 0:18:44.240 --> 0:18:45.080 go over to free Now. 0:18:45.119 --> 0:18:46.840 So we're just beginning that integration. 0:18:47.200 --> 0:18:49.200 I think there's a lot more work to do there 0:18:49.280 --> 0:18:51.560 before we really think about additional acquisitions. 0:18:51.800 --> 0:18:54.080 And David, you've got such sort of a bird's eye 0:18:54.119 --> 0:18:54.920 perspective on. 0:18:54.880 --> 0:18:56.240 The consumer early at this moment. 0:18:56.640 --> 0:18:58.960 How resilient is that consumer, particularly here in the US 0:18:59.000 --> 0:19:00.720 people trying to read the team. 0:19:01.520 --> 0:19:03.840 I understand, you know, every single day people sort of 0:19:03.840 --> 0:19:05.439 look deep in the teacup and try to figure out 0:19:05.440 --> 0:19:07.480 what's going on. All I can say is, if you're 0:19:07.480 --> 0:19:09.080 looking for weakness, look elsewhere. 0:19:09.119 --> 0:19:09.800 We're not seeing it. 0:19:09.880 --> 0:19:14.360 We're seeing record rides, you know, double digit growth, even airports, 0:19:14.359 --> 0:19:16.680 which people often look at as sort of a leading indicator. 0:19:16.760 --> 0:19:17.280 Now it's true. 0:19:17.320 --> 0:19:19.879 I think TSA volumes are moderating a little bit, but 0:19:19.920 --> 0:19:22.960 we're growing faster than TSA volumes are and we've grown 0:19:22.960 --> 0:19:24.000 airports now quarter. 0:19:23.920 --> 0:19:26.199 Over quarter and year over year. So it's such an 0:19:26.240 --> 0:19:26.639 interesting thing. 0:19:26.680 --> 0:19:28.560 I know people are sort of desperate to find, you know, 0:19:28.640 --> 0:19:30.159 sort of the cloud and the silver lining, but at 0:19:30.200 --> 0:19:31.919 least from our perspective, we're not seeing it. 0:19:32.240 --> 0:19:34.600 If CEO David Risher, great to have you back on 0:19:34.600 --> 0:19:36.040 the show, stay well, thank you. 0:19:42.160 --> 0:19:44.080 It's time now for talking tech and first up. 0:19:43.960 --> 0:19:47.639 Softbag Swan or quarterly profit, posting a net income of 0:19:47.680 --> 0:19:50.000 two point nine billion dollars in the fiscal first quarter, 0:19:50.240 --> 0:19:51.119 more than double on. 0:19:51.160 --> 0:19:52.240 Analysts had predicted. 0:19:52.359 --> 0:19:55.560 Now, the surprise gains our reflection of CEO Masaoshi's sons 0:19:55.560 --> 0:20:00.639 aggressive vets on artificial intelligence, plus China's export growth expectedly 0:20:00.640 --> 0:20:04.520 accelerated in July. Is global demand helped offset a slump 0:20:04.560 --> 0:20:07.119 in US shipments. Now, total exports rows seve point two 0:20:07.119 --> 0:20:09.280 percent from a year earlier, just three hundred and twenty 0:20:09.320 --> 0:20:11.840 two billion dollars. This is China saw strong shipments to 0:20:11.880 --> 0:20:13.600 the EU, Southeast Asia. 0:20:13.320 --> 0:20:18.240