WEBVTT - Bloomberg's Srinivasan on Intel, Heilemann on Clinton (Audio)

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<v Speaker 1>Global business news twenty four hours a day. If Bloomberg

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<v Speaker 1>I'm Charlie Pellot. The bidding on that lunch for Warren

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<v Speaker 1>for a barrel of West Texas Intermediate. Looking at a

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<v Speaker 1>drop now of three on w T I I'm Charlie

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<v Speaker 1>Pellett and that's a Bloomberg business flash. You're listening to

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<v Speaker 1>taking stock with pim Box and Kathleen Hayes on Bloomberg Radio.

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<v Speaker 1>Apple's not waiting for It's a worldwide developers conference next

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<v Speaker 1>week in San Francisco to shake up the market. Today

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<v Speaker 1>we find out that Apple's next iPhone will use motive

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<v Speaker 1>chips from Intel, replacing qual comp chips in some versions

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<v Speaker 1>of the new handset. Apparently it's a move by the

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<v Speaker 1>world's most valuable public company as that's Apple, to diversify

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<v Speaker 1>its supplier base. Here to talk about it, what it

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<v Speaker 1>means for investors for the industry is on Entrene of

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<v Speaker 1>us and he's Bloomberg Intelligence senior semiconductor and hardware analysts

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<v Speaker 1>on on were you surprised by this? Now? This has

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<v Speaker 1>been rumored for quite a while now, and the popular

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<v Speaker 1>press has been talking about it for quite some time

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<v Speaker 1>and then use his and intensifying some people have known

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<v Speaker 1>for a while that there's something here. Um. The simple

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<v Speaker 1>strokes of it is is that it's good for Intel

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<v Speaker 1>and it's bad for quacom Um. But the Apple supply

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<v Speaker 1>chain seems to be getting more complicated from a supplier

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<v Speaker 1>base as well as the number of components and the

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<v Speaker 1>number of suppliers that go into it. So UM, it's

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<v Speaker 1>interesting because Apple thus far has only had three specific

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<v Speaker 1>types of the iPhone UM for each version, and now

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<v Speaker 1>it's it's likely to get a little bit more complicated

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<v Speaker 1>than that. Okay, for lay person like me, are these

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<v Speaker 1>chips that different? I mean, doesn't really make that much

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<v Speaker 1>difference which one actually they are. And the reason why

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<v Speaker 1>Qualcom has had the share historically that it has had

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<v Speaker 1>is because these chips are enormously complex. Um. You have

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<v Speaker 1>a number of different bands or spectrums that you operate

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<v Speaker 1>in different telecom carriers all over the world. Remember, operate

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<v Speaker 1>on a different band. Then you have versions of each

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<v Speaker 1>of these. So by the time you put it all together,

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<v Speaker 1>you have to have every single flavor of every single

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<v Speaker 1>carrier in every single region of the world. And as

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<v Speaker 1>you move forward, suddenly it has to work with your

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<v Speaker 1>WiFi chips and it has to work with your Bluetooth chips.

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<v Speaker 1>So UM, to answer the question, yes, it is enormously complicated,

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<v Speaker 1>takes an enormous amount of R and D, but the

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<v Speaker 1>smartphone market is slowing. These developments have hit sort of

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<v Speaker 1>a little bit of a plateau coming off of the

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<v Speaker 1>three G two four G transitions. So now Apple and

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<v Speaker 1>the other carriers to saying, Okay, what can I get

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<v Speaker 1>what's the best price I can get for these chips? Well,

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<v Speaker 1>and they're going to continue to put the Qualcom chips

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<v Speaker 1>in the phones in China. Absolutely, um so. This is

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<v Speaker 1>this is vendor management. This is exacting the best price

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<v Speaker 1>for the best product possible. Do you expect I think

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<v Speaker 1>from the Worldwide Developer Conference next week when Apple gets

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<v Speaker 1>everybody together thousands of people in the Bay Area. Tim

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<v Speaker 1>Cook of course will be orchestrating events. Yeah, this is

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<v Speaker 1>going to be more of from an operating system and

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<v Speaker 1>an apps standpoint. Um not as much drama on the

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<v Speaker 1>hardware side as as as on the software section. How

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<v Speaker 1>important is for intels is a big win for them.

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<v Speaker 1>This is a big win for Intel because they have

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<v Speaker 1>historically been a laggered in the space. Um and they

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<v Speaker 1>got booted out of the iPhone a long time ago

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<v Speaker 1>when and Finian was in there. Um so, um so

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<v Speaker 1>it is it is a huge splash for them, and

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<v Speaker 1>it's a loss making division for them, So hopefully this

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<v Speaker 1>will help produce the losses Boston. Thank you so very

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<v Speaker 1>much for joining us senior semi conductor and hardware analysts

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<v Speaker 1>for Bloomberg Intelligence here in New York City. Have a

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<v Speaker 1>great weekend. Thank you YouTube well. Speaking of big wins, uh,

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<v Speaker 1>we are at the point now where we can talk

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<v Speaker 1>pretty seriously about who's going to get the big win

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<v Speaker 1>in November when it comes to winning the White House.

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<v Speaker 1>We're very happy to welcome back, as we do often

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<v Speaker 1>at this time, John Heilman. He is host, with all

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<v Speaker 1>due respect on Bloomberg Television, one of the leading lights

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<v Speaker 1>of Bloomberg politics, and you can catch it every day

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<v Speaker 1>week nights on Bloomberg t e V Bluebrig ninety nine

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<v Speaker 1>one on the radio in Washington. So John's I guess

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<v Speaker 1>it's uh, the historic moment is here. Hilary is the front,

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<v Speaker 1>is leading the Democratic pack, Trump reading leading the Republican pack.

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<v Speaker 1>Now what chaos madness? Um? Right, So yeah, we have

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<v Speaker 1>now presumptive nominees in both parties, and um, the general

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<v Speaker 1>election is on. Today. You had Hillary Clinton giving a

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<v Speaker 1>speech at Planned Parenthood and you had Donald Trump giving

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<v Speaker 1>a speech to Religious Freedom Conference. Um. Kind of classic

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<v Speaker 1>preview of what the fall campaign will look like. Both

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<v Speaker 1>of them, uh, speaking to audiences of the faithful and uh,

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<v Speaker 1>I mean that in both senses of the word uh,

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<v Speaker 1>members of the base and using those speeches both to

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<v Speaker 1>uh build energy among their core constituencies and also attack

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<v Speaker 1>each other. And um they both went after each other

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<v Speaker 1>pretty hard today. Um, but not in a way that

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<v Speaker 1>it was I think in a way that I think,

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<v Speaker 1>you know, it's suggestive of what we're likely to see

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<v Speaker 1>over the course of the next um X number of months.

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<v Speaker 1>I don't really even know how many months it is

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<v Speaker 1>between now and remember maybe you know that I'm horrible

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<v Speaker 1>and like, Okay, well, is this in the category of

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<v Speaker 1>with friends like this, who needs enemies? When Senate Majority

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<v Speaker 1>Leader Mitch McConnell, McConnell says Donald Trump needs to pick

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<v Speaker 1>and experience running mate because quote, he doesn't know a

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<v Speaker 1>lot about the issues and strongly urged him to change

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<v Speaker 1>course on his retoric, well, yeah, I mean, look, it's

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<v Speaker 1>it's it's now pretty evident that and it has been

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<v Speaker 1>for a while, but it's really become dramatically evident in

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<v Speaker 1>the wake of the controversies around uh uh Donald Trump's

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<v Speaker 1>racist comments about Judge Curiel that a lot of the

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<v Speaker 1>Republican establishment that kind of tentatively came to embrace Trump

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<v Speaker 1>over the course of the last month month and a

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<v Speaker 1>half are very uncomfortable with UM, with their standard bearer.

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<v Speaker 1>And so you have both Mitch McConnell, Paul Ryan, a

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<v Speaker 1>lot of folks UM treading very lightly, and there they can't.

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<v Speaker 1>They defend what Trump said, and they say that over

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<v Speaker 1>and over again. They haven't abandoned him yet. So from

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<v Speaker 1>the standpoint of Trump, it would be worse if Mitch

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<v Speaker 1>McConnell or Paul Ryan or others did what Centator Mark

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<v Speaker 1>Kirk from Illinois did, which is to withdraw their endorsements

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<v Speaker 1>from him entirely. But this is the way it's going

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<v Speaker 1>to be, I think throughout this election. I mean, if

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<v Speaker 1>Trump continues to say things that are incendiary and potentially

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<v Speaker 1>problematic for the Republican Party UM and it's candidates down ballot,

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<v Speaker 1>you're gonna see Republican leaders doing this throughout, which is

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<v Speaker 1>to say, UM, criticizing Trump, sometimes denouncing Trump, distancing themselves

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<v Speaker 1>from Trump, but still maintaining at least some kind of

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<v Speaker 1>superficial level of support. Well, you know, John Howman, you

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<v Speaker 1>you know, eight years ago you did a lot of

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<v Speaker 1>reporting inside the camps. You know, for for Hillary, for

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<v Speaker 1>Barack Obama, you did produce the great books and all.

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<v Speaker 1>So what in this campaign so far was you apply

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<v Speaker 1>that kind of reporting skill and that kind of experience.

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<v Speaker 1>What are you finding from the Trump camp? Are they

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<v Speaker 1>an ready to teach Donald Trump how to be you know,

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<v Speaker 1>big and loud and and you know, be not pleitily correct,

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<v Speaker 1>but not cross over a line. I think that the

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<v Speaker 1>there are two fundamental truths that have become clear in

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<v Speaker 1>the last two or three weeks. The first is that

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<v Speaker 1>there is no Trump campaign, and the second it is

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<v Speaker 1>is that there's no changing Donald Trump. As you probably

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<v Speaker 1>know from your own life, they're not that many men

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<v Speaker 1>who are women, who are sixty nine seventy years old,

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<v Speaker 1>who can be trained to be something different from what

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<v Speaker 1>they are. So the notion which was popular not that

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<v Speaker 1>long ago, which is like Donald Trump wi pivot to

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<v Speaker 1>become a general election candidate. He will be more quote presidential,

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<v Speaker 1>he will moderate his tone, he will uh somehow rain

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<v Speaker 1>himself in, he will script himself more often. Um. That

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<v Speaker 1>is something that may in sporadically work, but it won't

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<v Speaker 1>work in a sustained way. Over time, because it's just

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<v Speaker 1>not who Trump is, it's not what not just as

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<v Speaker 1>a presidential candidate, but as a public figure. I think

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<v Speaker 1>that the second thing is that there when I say

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<v Speaker 1>there is no Trump campaign, I mean there are a

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<v Speaker 1>bunch of people around Trump um way fewer than there

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<v Speaker 1>would be around any normal presidential candidates still, because the

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<v Speaker 1>campaign is having a hard time recruiting serious people to

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<v Speaker 1>work there because of the fact that Trump is so

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<v Speaker 1>difficult um as a candidate to deal with. UM particularly

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<v Speaker 1>people in the of a younger stripe, which is to say,

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<v Speaker 1>like strategists in their twenties, thirties, and forties are staying away.

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<v Speaker 1>But there are a bunch of people they're trying to

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<v Speaker 1>corral Donald Trump. But there is no kind of traditional

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<v Speaker 1>campaign structure, and the people who would exert a lot

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<v Speaker 1>of authority in a normal presidential campaign exert very little

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<v Speaker 1>around Donald Trump. His fundraising apparatus doesn't really is just

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<v Speaker 1>starting to come into form, like he's a year and

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<v Speaker 1>a half behind in terms of building a fundraising uh infrastructure.

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<v Speaker 1>He has no real field department, he has no data department,

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<v Speaker 1>he has no rapid response, he doesn't have a communications director.

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<v Speaker 1>He has you know, Hope Picks, who has been his

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<v Speaker 1>press secretary, and the person who deals with the press.

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<v Speaker 1>She's a one woman band. Still, you know, the campaign

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<v Speaker 1>manager in chief strategist UM. The two named players there,

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<v Speaker 1>Paul Manifert and Korey Lewandowski, UM are you know, have

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<v Speaker 1>some influence over Trump, but nothing like what you would

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<v Speaker 1>have seen in the Romney campaign, the Obama campaign, the

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<v Speaker 1>Clinton campaign currently. So you know, I think it's to

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<v Speaker 1>describe it as chaos is is a little bit probably

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<v Speaker 1>not overstated exactly, but that's sort of what's going on

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<v Speaker 1>is there's a lot of whaling and nashing of teeth.

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<v Speaker 1>I got a quick file comment from you on the

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<v Speaker 1>President's Barack Obama's the videotape piece that was released in

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<v Speaker 1>him supporting Hillary Clinton. How would you a grade that? Well,

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<v Speaker 1>I think the video tape piece is fine for what

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<v Speaker 1>it is, but you know, it's a well well done thing.

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<v Speaker 1>I think the what you what you really want to

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<v Speaker 1>focus on is just the extraordinary degree of political difficulty

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<v Speaker 1>that faced um all of the parties involved coming out

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<v Speaker 1>of the California and other primaries on on Tuesday, and

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<v Speaker 1>they handled that that minuet, that choreography was handled extraordinarily well,

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<v Speaker 1>with a huge amount of cooperation between the White House

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<v Speaker 1>and Hillary Clinton's team in Brooklyn. Well John Heileman, I

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<v Speaker 1>often end to you your job, isn't such a fascinating

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<v Speaker 1>year for politics, And if you're fascinated with politics, you

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<v Speaker 1>better watch with all due respect, Monday through Friday weeknights

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<v Speaker 1>at five pm on Bloomberg Television. You can listen on

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<v Speaker 1>Bloomberg in Washington. I'm Kathleen Hayes. This is taking stock

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<v Speaker 1>on Bloomberg Radio.