WEBVTT - Defense Tech in Focus As Iran Conflict Widens 0:00:02.520 --> 0:00:13.800 Bloomberg Audio Studios, podcasts, radio news. Bloomberg Tech is alive 0:00:13.880 --> 0:00:17.720 from coast to coast with Caroline Hyde in New York 0:00:17.960 --> 0:00:19.919 and Vla Loow in sentences go. 0:00:22.440 --> 0:00:24.799 This is Bloomberg Tech. I'm Caroline Hyde in New York 0:00:25.120 --> 0:00:27.319 and let's go straight to our top story today, the 0:00:27.360 --> 0:00:30.960 war with Iran. The conflict continues to reverberate across the 0:00:31.040 --> 0:00:33.800 Middle East. Today. This is President Trump says the bombing 0:00:33.840 --> 0:00:37.360 campaign against Iran could last for weeks. We are awaiting 0:00:37.479 --> 0:00:40.040 more updates from the President this hour, but we want 0:00:40.040 --> 0:00:42.440 to bring you the latest of Bloomberg's Danie Williams, who 0:00:42.520 --> 0:00:45.720 is in Jerusalem on the ground there in Israel. Dan, 0:00:45.760 --> 0:00:46.280 what is it like? 0:00:47.840 --> 0:00:49.519 Well, as you can see, the sun is set on 0:00:49.600 --> 0:00:51.960 what has been the third day of this extraordinary war, 0:00:52.040 --> 0:00:55.360 war that appears to be widening, engulfing not just some 0:00:55.480 --> 0:00:59.000 at least now, but even lapping up against Southern Europe, 0:00:59.000 --> 0:01:02.480 with Cyprus saying that a British air base on its 0:01:02.520 --> 0:01:06.840 soil was apparently targeted by a Hesbala drone. Hesbola being 0:01:06.880 --> 0:01:11.240 the Lebanese militia ally of Iran, in fact, an ally 0:01:11.240 --> 0:01:14.560 of Iran in Lebanon, which opened a front from Lebanon 0:01:14.680 --> 0:01:18.120 with Israel reopened that front overnight, and now these really 0:01:18.160 --> 0:01:21.560 are saying they're bombing targets in Lebanon a pace as 0:01:21.600 --> 0:01:26.640 they continue their bombing of Iran alongside US forces. So 0:01:26.760 --> 0:01:29.680 we have several fronts opening up, a number of Gulf 0:01:29.760 --> 0:01:32.880 Arab countries that also have found themselves in the firing 0:01:32.920 --> 0:01:36.520 line being struck by Iranian missiles and drones, and not 0:01:36.680 --> 0:01:40.880 just US bases on their turf, but also hotels and 0:01:40.920 --> 0:01:44.080 the like. This is imposing a good deal of economic 0:01:44.120 --> 0:01:47.039 pain on the region, and it would appear that what 0:01:47.120 --> 0:01:49.320 the Iranian regime is trying to do, even though it's 0:01:49.400 --> 0:01:54.200 massively outgunned by its enemies, is to wait out this 0:01:54.320 --> 0:01:57.680 campaign in the hope that the pain and indeed the 0:01:57.720 --> 0:02:01.840 patience of the American public that apparently disapproves of this 0:02:02.280 --> 0:02:06.120 by quite a margin already will wear thin and some 0:02:06.200 --> 0:02:08.400 members of the Ranian regime might be able to survive. 0:02:09.160 --> 0:02:13.200 Talk to us about what remains of the Iranian regime, Dan, it's. 0:02:13.160 --> 0:02:16.160 Very hard to know. It's the supreme leader was killed 0:02:16.200 --> 0:02:19.200 over the weekend in one of those opening salvos, and 0:02:19.280 --> 0:02:23.000 almost by the minute we've received updates about other members 0:02:23.240 --> 0:02:26.359 who have been killed, sometimes as successors of those who 0:02:26.360 --> 0:02:30.040 were recently killed. However, to judge by the cycle of 0:02:30.160 --> 0:02:33.720 fire being maintained by Iran, certainly in Israel, what we've 0:02:33.720 --> 0:02:38.760 been experiencing every half hour a couple hours, sirens and 0:02:38.840 --> 0:02:42.320 calls to take shelter in the face of missiles or 0:02:42.440 --> 0:02:45.200 drones coming in, it would appear that there is still 0:02:45.200 --> 0:02:48.880 a vestigious state functioning, managing to keep up the fight 0:02:49.240 --> 0:02:53.480 and presumably domestically managing to deter members of the opposition 0:02:53.560 --> 0:02:56.560 from trying to take control of the country. That is, 0:02:56.600 --> 0:03:01.040 of course the vision enunciated both by Israel and the 0:03:01.120 --> 0:03:04.800 United States at the outset a situation whereby the Iranian 0:03:04.880 --> 0:03:09.040 regime is sufficiently degraded s officially destroyed to enable the 0:03:09.160 --> 0:03:12.120 Ranian opposition, which many in the West would see as 0:03:12.160 --> 0:03:15.360 the bulk of the Iranian population, certainly the young population 0:03:15.800 --> 0:03:17.799 to take to the streets again as it did only 0:03:17.840 --> 0:03:20.400 a few weeks ago, but this time not facing the 0:03:20.400 --> 0:03:23.400 guns of the state and being able to assume control. 0:03:23.840 --> 0:03:26.240 Extraordinary day in Jerusalem, as you say, a third day, 0:03:26.280 --> 0:03:29.359 Dan Williams, we so appreciate you being with us of Bloomberg. 0:03:29.480 --> 0:03:32.160 Now let's check out what is a human story that 0:03:32.240 --> 0:03:34.680 is affecting markets right now, andw's that one hundred off 0:03:34.680 --> 0:03:37.240 by four tenths seven percent. Big tech is seeing some 0:03:37.240 --> 0:03:39.840 significant moves on individual names. Of course, money moving into 0:03:39.840 --> 0:03:42.320 the likes of Nvidia, palant here as you're seeing up 0:03:42.360 --> 0:03:46.080 six percent as a defense related name from the tech 0:03:46.120 --> 0:03:49.000 perspective pushes high. These are your big points contributors on 0:03:49.040 --> 0:03:51.120 the day and in video in fact making a deal 0:03:51.200 --> 0:03:53.400 putting money into optical companies. We'll dig into that a 0:03:53.440 --> 0:03:56.360 little bit later, but really we're also seeing significant moves 0:03:56.360 --> 0:04:00.600 in other parts of the market, different industry groups, different classes. 0:04:00.640 --> 0:04:04.600 Brent crude unsurprisingly up more than seven percent, extraordinary moves 0:04:04.600 --> 0:04:07.800 as we consider the straight ofform moves an issue about 0:04:08.000 --> 0:04:11.360 supply chains written large for the globe to try and digest. 0:04:11.400 --> 0:04:13.800 Bitcoin is up by more than five percent, with covering 0:04:13.840 --> 0:04:15.320 some of its losses as it was one of the 0:04:15.320 --> 0:04:17.839 main tradable assets over the course of the weekend, and 0:04:17.960 --> 0:04:21.040 strategy if micro Strategy is currently up six point eight 0:04:21.040 --> 0:04:23.440 percent on the back of that Bitcoin buying. Let's talk 0:04:23.440 --> 0:04:27.039 about the market impact more with epec Oscar Deesco, Swiss 0:04:27.080 --> 0:04:30.760 quote senior market analyst, and this is a moment of 0:04:30.920 --> 0:04:34.680 knee jerk reaction of risk of sentiment. But interestingly, we 0:04:34.760 --> 0:04:37.480 are still seeing big tech managing to see some flows 0:04:37.480 --> 0:04:37.840 into it. 0:04:39.080 --> 0:04:41.640 Exactly what we see right now is that as the 0:04:42.080 --> 0:04:45.640 spike in oil prices is being retraced, technology companies are 0:04:45.640 --> 0:04:48.719 also finding some breathing room right now. And we also 0:04:48.800 --> 0:04:52.479 do see some individual divergences in the technologists phase. The 0:04:52.520 --> 0:04:56.600 companies that do have exposure greater exposures to energy costs, 0:04:56.720 --> 0:05:00.400 like the ones that run data centers, are being more 0:05:00.440 --> 0:05:03.960 heavily than the others that are more or less capital intensive, 0:05:04.040 --> 0:05:07.440 like Nvidia for example. The defense related names are also 0:05:07.800 --> 0:05:11.520 gaining on the back of the Middle East conflict news. 0:05:12.160 --> 0:05:16.240 Is that an automatic buying that you think we'll see 0:05:16.320 --> 0:05:19.040 the likes of Palenteer hold on to gains going forward. 0:05:19.480 --> 0:05:22.920 Is there something that is sticky about this demand for 0:05:23.000 --> 0:05:23.920 such defense tech. 0:05:25.080 --> 0:05:28.240 Yes, we believe that globally the defense stocks have been 0:05:28.400 --> 0:05:32.279 in demand due to the rapid shifts and the significant 0:05:32.320 --> 0:05:35.680 shift in global geopolitics. And we have seen a couple 0:05:35.760 --> 0:05:39.480 of times since last year that the geopolitical tensions are 0:05:39.520 --> 0:05:43.359 not ready to ease from the actual levels. So the 0:05:43.480 --> 0:05:47.120 risks are being quite high, and the technology companies are 0:05:47.480 --> 0:05:50.520 in technology and defense companies are benefiting grande from it. 0:05:50.520 --> 0:05:52.920 It's not only in the US, but we also think 0:05:52.960 --> 0:05:56.080 that the defense stocks in Europe will also be will 0:05:56.080 --> 0:06:00.400 also continue to benefit from the rising geopolitical tensions restling 0:06:00.400 --> 0:06:01.080 across the globe. 0:06:01.120 --> 0:06:03.479 I mean, what's notable as benchmarks are actually trying to 0:06:03.520 --> 0:06:05.560 turn around I'm looking at then that's that more broadly 0:06:05.560 --> 0:06:07.080 only off by about a tenth of a percent now 0:06:07.120 --> 0:06:09.559 the SMP and the US currently off by three ten percent, 0:06:09.600 --> 0:06:12.839 even though we see market falls over in Asia and 0:06:12.880 --> 0:06:17.360 European trading, epect just the macro picture for someone who 0:06:17.400 --> 0:06:20.280 is in the audience right now trying to understand where 0:06:20.440 --> 0:06:25.640 to be navigating if they're exposed to technology names well exactly. 0:06:25.680 --> 0:06:28.000 I mean, what the big picture of today was the 0:06:28.080 --> 0:06:30.520 rapids wise that we saw in energy prices at the 0:06:30.520 --> 0:06:33.520 beginning of today's session, so the Asian and European stocks 0:06:33.520 --> 0:06:36.159 were heavily hit. But as we move on towards the 0:06:36.360 --> 0:06:39.320 US session, we see that these gains have been retraced. 0:06:39.400 --> 0:06:42.719 So some of the hotys expectations regarding the major central 0:06:42.760 --> 0:06:44.880 banks that would be lifted. 0:06:45.000 --> 0:06:47.080 That would be that that was. 0:06:47.080 --> 0:06:49.479 Coming actually from the fact that the energy. 0:06:49.160 --> 0:06:50.000 Prices would lift. 0:06:50.080 --> 0:06:54.200 Inflation expectations are also being trimmed right now as oil 0:06:54.279 --> 0:06:57.120 prices are coming back down, and I think that that 0:06:57.360 --> 0:07:01.760 is the global macroeconomic picture that investors should understand. It 0:07:01.839 --> 0:07:05.720 is really today about the energy prices, the inflation expectations, 0:07:05.720 --> 0:07:09.040 and the impact on central bank decisions. As energy prices 0:07:09.080 --> 0:07:12.240 move lower, we are getting back to the levels of 0:07:13.080 --> 0:07:15.640 risk that we saw in the beginning of the session. 0:07:15.720 --> 0:07:18.720 Now we are still higher in terms of energy prices 0:07:18.760 --> 0:07:22.280 and the risk of another upside potential move and sustain 0:07:22.720 --> 0:07:25.960 again in energy prices due persist. But at the moment 0:07:26.000 --> 0:07:29.520 it's quite interesting to see how fast the early gains 0:07:29.560 --> 0:07:34.000 are being retraced and the global markets are immediately readjusting 0:07:34.040 --> 0:07:35.520 to that retracement. 0:07:36.720 --> 0:07:39.560 What is bitcoin acting as in this moment. 0:07:40.480 --> 0:07:44.600 Well, it's interesting because bitcoin has not necessarily been as 0:07:45.320 --> 0:07:48.880 risk haven or a safe haven asset over the past 0:07:48.960 --> 0:07:51.960 few weeks. It was very much in line trend, very 0:07:52.000 --> 0:07:55.880 much in line with technology companies and was hit along 0:07:55.920 --> 0:07:59.239 with the cell off that we saw across the technology space. 0:07:59.240 --> 0:08:01.360 So what we see to is that the bitcoin is 0:08:01.400 --> 0:08:05.240 actually acting as a safe haven asset, and we suspect 0:08:05.360 --> 0:08:10.200 that the regional conflict could eventually bring some capital into 0:08:10.520 --> 0:08:16.720 bitcoin regarding maybe the detentions or or the fact out 0:08:16.880 --> 0:08:19.760 the gold has been overly valued and investors may be 0:08:19.960 --> 0:08:22.760 looking for other safe haven. But to be perfectly honest 0:08:22.800 --> 0:08:25.240 with you, the move that we see in bitcoin and 0:08:25.280 --> 0:08:28.680 the coupling of the correlation with the technologists is quite 0:08:28.760 --> 0:08:32.199 interesting right now, even more so as the higher energy 0:08:32.320 --> 0:08:36.800 energy prices should normally also have negative impact on bitcoin impact. 0:08:37.000 --> 0:08:39.320 It's great to catch up with you. Thank you very much. Indeed, 0:08:39.320 --> 0:08:41.640 I thank you ipec's go desh guys with us on 0:08:41.720 --> 0:08:44.000 Swiss quote. We appreciate it. Mean while coming up, we'll 0:08:44.000 --> 0:08:48.440 speak with representatives Samncardo, a congressman from Silicon Valley about 0:08:48.440 --> 0:08:52.040 the conflict in the Middle East and AI policy. Meanwhile, 0:08:52.320 --> 0:08:54.920 check out shares of Apple. There is other news happening 0:08:54.920 --> 0:08:57.520 amid of course the concerns in the Middle East. We're 0:08:57.600 --> 0:08:59.800 up almost two tens of percent as Apple is unvailing 0:08:59.800 --> 0:09:02.760 the iPhone seventeen E. It's the latest version of its 0:09:02.800 --> 0:09:06.280 lower end smartphone, faster version of an iPad Air also 0:09:06.320 --> 0:09:10.040 coming out with the iPhone seventeen e, including a faster processor, 0:09:10.320 --> 0:09:26.760 new in house wireless chips. This is Bloomberg Tech. We 0:09:26.840 --> 0:09:29.720 are awaiting remarks from President Trump in Washington, who is 0:09:29.720 --> 0:09:33.240 about to participate in a public event, and we anticipate 0:09:33.280 --> 0:09:36.760 there might be some commentary regarding the war with Iran. 0:09:37.160 --> 0:09:39.640 We will be bringing you up to the moment breaking 0:09:39.679 --> 0:09:42.400 news on that subject, but within the context of Middle 0:09:42.400 --> 0:09:45.320 East Anthropic it has been saying that there's been an 0:09:45.320 --> 0:09:48.400 outage that impacted thousands of Claud users, but it has 0:09:48.440 --> 0:09:51.120 now been resolved. Reports of the issues with the chatbot 0:09:51.160 --> 0:09:54.480 came is the AI provider experiences a surge in demand 0:09:54.840 --> 0:09:57.280 driven by the company's feud with the Pentagon and for 0:09:57.360 --> 0:09:59.760 the potential use of its technology for mass surveillance in 0:09:59.800 --> 0:10:02.880 the development of autonomous weaponry. Now, Seth Figman, a Bloomberg 0:10:02.920 --> 0:10:04.680 News and place to say, joins us to set the 0:10:04.679 --> 0:10:08.720 context first, because while a feud is erupted between Anthropic, 0:10:09.080 --> 0:10:13.280 we've actually seen Open Ai complete a contract with the 0:10:13.320 --> 0:10:15.880 Pentagon in the use of its own AI technology. Just 0:10:15.880 --> 0:10:17.080 take us through the weekend, Seth. 0:10:17.360 --> 0:10:19.319 Yeah, I think this has to be the most dramatic 0:10:19.320 --> 0:10:22.520 weekend we've seen AI lands since the ouster Sam Altman 0:10:22.600 --> 0:10:26.960 a couple of years ago. But to your point, Carolyn, Yes, 0:10:27.360 --> 0:10:32.520 Openingey swooped in hours after Anthropic was effectively blacklisted by 0:10:32.559 --> 0:10:35.439 the Defense Department and segaing to deal with the Defense 0:10:35.520 --> 0:10:39.040 Department for classified AI work. Now, opening I is not 0:10:39.160 --> 0:10:42.360 saying if this replaces Anthropics were, but they are signaling 0:10:42.440 --> 0:10:46.439 that they are comfortable with the contractual safeguards to make 0:10:46.440 --> 0:10:50.040 sure that their technology is not used for domestic surveillance 0:10:50.200 --> 0:10:52.880 or for autonomous weaponry, which were the two red lines 0:10:53.240 --> 0:10:55.679 that Anthropic really centered on and which led to this 0:10:55.960 --> 0:10:57.840 fierce standoff with the Pentagon. 0:10:58.679 --> 0:11:02.480 It's been a standoff that has erupted online, with many 0:11:02.840 --> 0:11:06.640 people calling to stop using chat GBT to instead shift 0:11:06.679 --> 0:11:10.280 one's attention to Anthropics consumer apps. Now, it might be 0:11:10.280 --> 0:11:13.120 said that Claude for Enterprise hasn't been affected by the 0:11:13.200 --> 0:11:16.760 outages today. It's interesting that Treasury Secretary Scott Bessen has 0:11:16.800 --> 0:11:19.800 been saying that he's following President Trump's direction on Anthropic 0:11:19.880 --> 0:11:22.679 and in the Treasury Department is terminating all use of 0:11:22.720 --> 0:11:25.880 Anthropic products. But there's reporting to show that it's of 0:11:25.920 --> 0:11:27.839 course still being used at the moment and was over 0:11:27.880 --> 0:11:29.120 the course of the weekend with Iran. 0:11:30.160 --> 0:11:31.960 Yeah, I think to step back, let's just say that 0:11:32.040 --> 0:11:34.839 what seems clear is that the federal government is moving 0:11:34.840 --> 0:11:39.199 forward with rethinking its use of CLAUD. What's less clear 0:11:39.840 --> 0:11:42.079 is what the broader impact than blasphe igus will be 0:11:42.160 --> 0:11:46.280 unanthropic from the many other businesses and companies that work 0:11:46.400 --> 0:11:51.400 with the government. To take headsets tweet literally, he's implying 0:11:51.440 --> 0:11:55.040 that any business that does commercial business with Anthropic must 0:11:55.120 --> 0:11:57.920 stop that if they also work with the military. But 0:11:58.320 --> 0:12:01.240 Dario Miday, at the CEO of Anthropics there over the weekend, 0:12:01.400 --> 0:12:03.760 he thinks it's much more limited in scope. It'll just 0:12:03.840 --> 0:12:06.240 be if they do military work with the anthropics. So 0:12:06.280 --> 0:12:07.760 that remains to be seeing how it's interpreted. 0:12:08.000 --> 0:12:09.559 Still a lot of work to be done by the 0:12:09.679 --> 0:12:13.280 likes of Palenteer, for example, Bloomberg Seth Fiegeman across this story. 0:12:13.320 --> 0:12:16.120 Thank you very much. Indeed, now look US lawmakers, they're 0:12:16.160 --> 0:12:19.360 gearing up for a vote on a war powers resolution 0:12:19.559 --> 0:12:22.200 following the strikes in Iran. This is unfolding as the 0:12:22.240 --> 0:12:26.000 debate over AI used by the military continues. We're poased 0:12:26.040 --> 0:12:28.920 to say we're joined by representatives Sam Nacardo his district 0:12:29.120 --> 0:12:33.040 includes parts of Silicon Valley. There is drama in Washington, 0:12:33.080 --> 0:12:35.160 where you've just got the train to us from. There 0:12:35.200 --> 0:12:38.360 is drama in where you represent as well. Can I 0:12:38.440 --> 0:12:41.319 just ask you, first and foremost, what do you think 0:12:41.360 --> 0:12:43.920 the relationship of some of the companies that within your 0:12:43.960 --> 0:12:48.120 district is evolving with the Pentagon? How do you observe 0:12:48.280 --> 0:12:49.680 what occurred over the last few days. 0:12:50.120 --> 0:12:52.920 I think Silica on Vallet, there's a strong libertarian streak, 0:12:53.160 --> 0:12:55.600 and so there are many who are cheering to see 0:12:55.640 --> 0:12:59.360 Anthropics step up as it had. And look, there's a 0:12:59.480 --> 0:13:03.120 free market here in the Defense Department has many competitors 0:13:03.120 --> 0:13:05.160 to choose from, and it has a right to choose 0:13:05.200 --> 0:13:08.480 whoever it wants. But it seems to me that at 0:13:08.480 --> 0:13:10.880 the end of the day, when we're talking about AI safeguards, 0:13:10.920 --> 0:13:14.800 these ought to be decisions that are not confined to 0:13:15.240 --> 0:13:20.600 back room negotiations between lawyers at the Pentagon and individual companies. 0:13:20.640 --> 0:13:24.080 These ought to be very public discussions. The administration should 0:13:24.080 --> 0:13:27.320 be setting rules, Congress should be setting rules. And the 0:13:27.360 --> 0:13:30.520 way this all went down now with retribution against Anthropic 0:13:30.600 --> 0:13:33.920 in the way that Secret Heseth and others have articulated, 0:13:34.120 --> 0:13:37.280 I think is very damaging to Silicon Valley and frankly 0:13:37.320 --> 0:13:37.960 to the country. 0:13:38.120 --> 0:13:40.960 In many ways, Anthropic and Daria Amide have tried to 0:13:40.960 --> 0:13:43.480 make it a public discussion, brought it into the light. 0:13:43.880 --> 0:13:47.240 What's interesting is Dario has also said that the law 0:13:47.280 --> 0:13:50.880 has not yet caught up with AI's ability. Therein lies 0:13:50.960 --> 0:13:54.440 your role in Congress. How can Congress keep up at 0:13:54.440 --> 0:13:58.200 this moment to ensure that there aren't these blurred red 0:13:58.240 --> 0:14:01.000 lines that everyone's trying to digest from open AI's contract 0:14:01.080 --> 0:14:02.120 and from Anthropics. 0:14:02.320 --> 0:14:04.640 Well, this isn't the first time someone has said Congress 0:14:04.679 --> 0:14:07.040 is not moving at the pace of technology. We've been 0:14:07.040 --> 0:14:10.120 waiting thirty years for a data privacy bill, for protections 0:14:10.160 --> 0:14:15.000 against for protections for children online, etc. But the reality 0:14:15.120 --> 0:14:17.079 is this is an area where both Congress needs to 0:14:17.120 --> 0:14:20.440 act and the administration needs to act. There should be 0:14:20.520 --> 0:14:23.320 clear lines. I don't think a lot of folks argue 0:14:23.320 --> 0:14:26.480 with the lines that Anthropic articulated. In fact, open Ai 0:14:26.600 --> 0:14:30.480 seem to have embraced them. So why not rather than 0:14:30.480 --> 0:14:33.680 punishing the company, hold these up as examples. This is 0:14:33.720 --> 0:14:36.880 an opportunity where the industry can inform the government, and 0:14:36.920 --> 0:14:39.480 we ought to be taking those cues you. 0:14:39.400 --> 0:14:43.320 Say, open eyes, embrace the red lines that anthropy put forth. 0:14:43.360 --> 0:14:46.440 There's reporting to suggest that the cynicism. 0:14:45.920 --> 0:14:50.360 Around that, yes, well that is to be determined. I 0:14:50.360 --> 0:14:53.280 guess I'm simply relying on what I'm hearing publicly. 0:14:53.360 --> 0:14:53.520 Now. 0:14:53.560 --> 0:14:57.040 Obviously I understand why there might be cynicism. Look, the 0:14:57.040 --> 0:15:01.680 bottom line is this shouldn't be enforced by one particular 0:15:01.760 --> 0:15:04.880 CEO at one company. There's a reason why there ought 0:15:04.880 --> 0:15:06.760 to be a public discussion because this is going to 0:15:06.800 --> 0:15:09.000 impact all of us, and certainly when we talk about 0:15:09.040 --> 0:15:11.400 issues like public surveillance. 0:15:10.880 --> 0:15:14.560 I mean, realistically, are you able to have the time, 0:15:14.680 --> 0:15:17.320 the insight, the focus and the moment when we've got 0:15:17.360 --> 0:15:21.480 an erupting war withether on and indeed, well government shut down? 0:15:21.640 --> 0:15:23.800 How effective can you be at this moment? Congress? 0:15:24.120 --> 0:15:27.320 Well, I'm not going to speak for Congress because frankly, 0:15:27.360 --> 0:15:30.680 as you know, if you ever made a bet on 0:15:30.720 --> 0:15:33.680 Congress not getting anything done, you win ninety nine times. 0:15:33.720 --> 0:15:37.360 Out About Fumber's markets, yeah, they're doing pretty well. But 0:15:37.440 --> 0:15:40.360 I will say this week I'll be introducing a provision 0:15:40.480 --> 0:15:43.600 in what's called the Defense Productions Act really to prevent 0:15:44.840 --> 0:15:48.800 any federal agency from retaliating against companies like Anthropic when 0:15:48.800 --> 0:15:53.280 they proposed reasonable limits on the deployment of their technology. 0:15:53.480 --> 0:15:56.520 Technology is obviously a wonderful thing. We know it has 0:15:56.640 --> 0:15:59.560 enormous risks. We ought to take the cues from industry. 0:16:00.040 --> 0:16:03.760 Tree tells us these risks are too great. Let's draw lines. 0:16:04.040 --> 0:16:06.000 What do you think will be the support of that 0:16:06.000 --> 0:16:07.880 bill across both aisles. 0:16:08.560 --> 0:16:12.160 We'll be discussing it this week in the House Financial 0:16:12.160 --> 0:16:15.000 Services Committe where we were having their markup. I'm still 0:16:15.040 --> 0:16:17.240 having those conversations with my colleagues. 0:16:17.160 --> 0:16:19.360 Okay, so maybe we can find some support that it 0:16:19.400 --> 0:16:21.840 shouldn't be down. There shouldn't be retribution, There shouldn't be 0:16:21.840 --> 0:16:24.840 sort of unprecedented moves where you deem a company a 0:16:24.920 --> 0:16:27.600 homegrown domestic champion as a supply risk in some way. 0:16:27.960 --> 0:16:31.720 But when you think more broadly about AI regulation in 0:16:31.760 --> 0:16:33.960 the hands of Congress or in the hands of the 0:16:33.960 --> 0:16:37.120 executive right now is are you comfortable with the amount 0:16:37.120 --> 0:16:39.320 of executive orders that have been deemed around AI, the 0:16:39.360 --> 0:16:42.680 way in which the administration has had to take maybe 0:16:42.880 --> 0:16:45.880 the steps necessary if the Congress void is still there. 0:16:46.320 --> 0:16:49.560 Well, I know this president is not unique and using 0:16:49.640 --> 0:16:52.240 executive orders where Congress is failing to act. The way 0:16:52.240 --> 0:16:54.560 in which these executive orders have been deployed a deeply 0:16:54.600 --> 0:16:58.400 problematic and certainly we've seen in many cases quite unconstitutional. 0:16:58.760 --> 0:17:01.240 Congress needs a step up, and that requires the majority 0:17:01.240 --> 0:17:05.520 party to do its job, that is to defend the 0:17:05.560 --> 0:17:10.040 progatives under Article one of the Constitution, where Congress has authority, 0:17:10.520 --> 0:17:13.439 and we've seen a host of areas from tariffs, certainly 0:17:13.520 --> 0:17:16.480 the AI where Congress has simply not been stepping up 0:17:16.640 --> 0:17:20.840 and allowing this president to take too much of the turf. 0:17:21.560 --> 0:17:24.280 There's a reason why we want Congress to be deciding this. 0:17:24.640 --> 0:17:29.000 These are issues that have massive impacts in many communities 0:17:29.080 --> 0:17:33.280 that are diverse communities that are simply not benefiting from 0:17:33.359 --> 0:17:35.919 AI as much as my communities so Oka Valley might be. 0:17:36.720 --> 0:17:38.840 That's why you need to have a national conversation. 0:17:39.160 --> 0:17:42.320 You were having a national conversation before the conversation became 0:17:42.400 --> 0:17:45.120 much more of war in the Middle East and war 0:17:45.160 --> 0:17:48.680 with Iran. You were talking about how we shouldn't see 0:17:48.720 --> 0:17:52.840 Congress just slam the brakes on AI innovation, and equally 0:17:52.840 --> 0:17:55.520 they shouldn't accelerate. There should be a way of grabbing 0:17:55.560 --> 0:17:57.320 the steering wheels. The way you wrote it in an 0:17:57.320 --> 0:18:02.119 op ed. Can we get some sort of bipartisan approach 0:18:02.200 --> 0:18:04.800 to grabbing a steering wheel in When you say so 0:18:04.880 --> 0:18:07.720 many states are affected in different ways. 0:18:07.400 --> 0:18:10.320 By AI, I'd like to think we can. Look, there's 0:18:10.359 --> 0:18:12.480 a lot of fears right now around AI, around lots 0:18:12.520 --> 0:18:16.600 of jobs, around impacts on utility bills. There are opportunities 0:18:16.600 --> 0:18:18.840 for us to move together. For example, we know these 0:18:18.880 --> 0:18:23.680 hyperscalers need speed. Let's give them federal permits enable them 0:18:23.680 --> 0:18:27.760 to accelerate if they're keeping rate payers whole and protecting 0:18:27.760 --> 0:18:31.800 them from these utility at the risk of higher prices 0:18:32.359 --> 0:18:36.280 on their utility bills. And you know, investing in batteries 0:18:36.560 --> 0:18:38.679 and the kinds of technology we know that will be 0:18:38.720 --> 0:18:43.520 sustainable rather than simply pulling more natural gas and colon. 0:18:44.160 --> 0:18:46.119 You know, for example, on jobs, there are things that 0:18:46.160 --> 0:18:49.160 we can do that our bipyrason that can incentivize companies 0:18:49.160 --> 0:18:52.520 to invest in community colleges and local state universities, up 0:18:52.520 --> 0:18:56.840 skill and reskill. These are not necessarily partisan notions. This 0:18:56.920 --> 0:18:59.280 is a time for us to be thinking more creatively 0:18:59.440 --> 0:19:02.400 across the aisle on these kinds of solutions. We don't 0:19:02.400 --> 0:19:05.359 have the kind of administration now in office that is 0:19:05.520 --> 0:19:08.480 particularly bipartisan, and so it's really going to have to 0:19:09.000 --> 0:19:11.119 come from ground up. 0:19:11.760 --> 0:19:15.400 You mentioned social media, and I think in many ways 0:19:15.560 --> 0:19:18.200 people have felt that there's been a void of lawmaking 0:19:18.200 --> 0:19:20.919 around social media because there is so much nuance to 0:19:21.040 --> 0:19:24.720 much of this. Is there sometimes too much nuance when 0:19:24.720 --> 0:19:29.080 it comes to the likes of impact by the Pentagon's 0:19:29.080 --> 0:19:33.000 decisions on mass surveillance, on issues of autonomous weaponry, that 0:19:33.080 --> 0:19:35.159 really laws can't be made that can keep up. 0:19:35.320 --> 0:19:38.879 Briefly, it's fair to say that this is incredibly complex, 0:19:39.040 --> 0:19:42.320 and you can't simply declare amateur hour and start to 0:19:42.359 --> 0:19:47.880 announce edicts that are going to apply broadly across multiple 0:19:47.880 --> 0:19:52.119 industries where the impacts may be very different. What I 0:19:52.160 --> 0:19:55.320 have been proposing, and we'll be coming out with legislation soon, 0:19:55.400 --> 0:19:59.600 is how, for example, on AI, we can essentially enable 0:20:00.119 --> 0:20:03.760 industry experts academic experts to be able to establish what 0:20:03.880 --> 0:20:07.320 those best practices are in an industry, allow industry to 0:20:07.400 --> 0:20:10.560 reach those best practices, rather than having some kind of 0:20:10.840 --> 0:20:15.199 monolithic eedic come from Congress or the administration. Government's not 0:20:15.240 --> 0:20:17.360 going to get it right. We have to acknowledge that 0:20:17.520 --> 0:20:20.679 this is moving too fast. We need to rely on 0:20:20.720 --> 0:20:23.919 the best thinking in the industry to establish what the 0:20:23.960 --> 0:20:27.920 best practices are and then mandate that folks can reach 0:20:28.000 --> 0:20:30.960 those they can have the benefits for example of preemption. 0:20:32.000 --> 0:20:34.560 If they don't, then they're subjected to the edicts of 0:20:34.600 --> 0:20:35.640 fifty different states. 0:20:36.080 --> 0:20:37.320 We appreciate you stopping by. 0:20:37.680 --> 0:20:38.600 It's great to be with you. 0:20:38.520 --> 0:20:41.480 You see here in New York Representative Sam Niicado, who 0:20:41.520 --> 0:20:44.960 represents the heart of Silicon Valley and much more in California. 0:20:45.359 --> 0:20:48.760 Now coming up Bitcoin, it shakes off invest a caution 0:20:48.920 --> 0:20:52.120 as Middle East tensions they rattle global markets, will bring 0:20:52.119 --> 0:21:08.119 you more market impact. Next, this is Blomberg Tech Bitcoin 0:21:08.359 --> 0:21:11.240 staging and comeback nearing seventy thousand dollars levels after the 0:21:11.320 --> 0:21:14.560 US and is really a taxed on Iran shook investor 0:21:14.600 --> 0:21:17.200 confidence over the weekend. Who in the latest is Bloomberg 0:21:17.200 --> 0:21:20.399 Cross asset reporter Isabelle Lee. They shape people with thinking 0:21:20.440 --> 0:21:22.399 of a world of war. That is not something to 0:21:22.440 --> 0:21:24.960 take lightly. But we think about the assets impacted. How 0:21:25.040 --> 0:21:27.800 is bitcoin managing to rally through this? Definitely behaving like 0:21:27.840 --> 0:21:29.560 a risk asset. I feel like, I mean, when you 0:21:29.840 --> 0:21:32.119 see a big pullback like that, it's eventually going to 0:21:32.160 --> 0:21:34.359 bounce back. It's now higher by around six percent after 0:21:34.440 --> 0:21:37.479 dropping as much as sixty three percent sixty three thousand 0:21:37.520 --> 0:21:39.960 over the weekend. Other less liquid, smaller coins are also 0:21:39.960 --> 0:21:42.560 in degree in higher by six percent, like ether. The 0:21:42.600 --> 0:21:44.760 thing I love about cryptocurrency is that trades twenty four 0:21:44.760 --> 0:21:46.679 to seven, and you really can see and use it 0:21:46.720 --> 0:21:49.600 as a risk sentiment when markets are closed, and now 0:21:49.640 --> 0:21:52.560 that we see US stark open, you see worries about 0:21:52.560 --> 0:21:55.760 an inflation resurgence. For instance, bonds are slumping, traders are 0:21:55.760 --> 0:21:58.800 trimming their FED rate cuts, heaven assets are surging dollar 0:21:58.960 --> 0:21:59.800 gold oil. 0:22:00.119 --> 0:22:02.880