Speaker 1: Bloomberg Audio Studios, podcasts, radio news from Mahard.
Speaker 2: We're Innovation of Money and power Collie in Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Speaker 3: Live from New York and San Francisco. This is Bloomberg
Speaker 3: Technology Coming up. Tech leads us lower as we end
Speaker 3: the week in the red. All eyes on in video
Speaker 3: earnings as the Trump trade it fades plus.
Speaker 4: Ali Barber reports solid growth in international and cloud units,
Speaker 4: offsetting week sales in its China e commerce.
Speaker 3: Business, and SpaceX gets ready to launch a tender offer
Speaker 3: in December, which would value it at more than two
Speaker 3: hundred and fifty billion dollars according to reports. But first
Speaker 3: from private markets to public markets. We're having a pretty
Speaker 3: lower end to the week. Look, the risk off focus
Speaker 3: has come. Whether it's Trump Trade, the euphoria dying, or
Speaker 3: whether it's Federal reserve. Reality is we cut our bets
Speaker 3: for a FED rate cut in December to as low
Speaker 3: as a fifty percent chance. Now we're off by three percent.
Speaker 3: This is the worst week since the beginning of September
Speaker 3: for the NASDAC. Just bear that in mind. Four straight
Speaker 3: days of losses. We thank one of our producers for
Speaker 3: that particular key fat. That is the worst set of
Speaker 3: losses that we've seen going back to April. On a
Speaker 3: back to back basis. We're looking at bitcoin though managers
Speaker 3: to continue to power higher on the week but not
Speaker 3: on the day.
Speaker 5: Bitcoin up some fifteen percent.
Speaker 3: It's a seven day version of this end because trades
Speaker 3: over the weekend.
Speaker 5: What are you looking at on a micro basis, Yeah, I.
Speaker 4: Think part of the reason that the overall euphoria's faded
Speaker 4: post election is the hearing now is about technology earnings.
Speaker 4: Applied Materials is the biggest US maker of chip making equipment.
Speaker 4: It's like the US version of ASML. It's given us
Speaker 4: a week outlook. We're going to dig into that later
Speaker 4: in the show. Bloombergsin and King. Clearly the stock is
Speaker 4: down a lot. Then you have Ali Barber. These are
Speaker 4: the US listed shares or ADRs, and we kind.
Speaker 6: Of summer it at the top.
Speaker 4: They're seeing really weak or anemic growth in e commerce
Speaker 4: in China, which is their domestic core business, even if
Speaker 4: they're doing well in other areas. Again, we will dig
Speaker 4: into that a little bit more in just a moment,
Speaker 4: but don't forget earnings is a story from here. Are
Speaker 4: in because the big one next week in Vidia. All
Speaker 4: relevant and we'll get to it later in the program.
Speaker 3: Karen re member the twentieth after the market, All eyes
Speaker 3: on Nvidia, all eyes on what's moving the markets right here,
Speaker 3: right now. Bloomberg of course as well. Lee is over
Speaker 3: in Boston today. Just tell us what you're looking at
Speaker 3: in the market.
Speaker 7: I'm looking at tech and it's really interesting because it's
Speaker 7: a weight and see for all these tech companies, they're
Speaker 7: really struggling to parse out what a second Trump administration will.
Speaker 5: We'll do it.
Speaker 7: It doesn't help the Trump personally. This likes meta and alphabet.
Speaker 7: And if you look at the stocks, they're reflecting that.
Speaker 7: While we have Tesla up at about twenty percent for
Speaker 7: a good reason, which is Elon Musk, the rest are
Speaker 7: really trading flat. And then as that, as you pointed out,
Speaker 7: is down for a four straight day, so that's really
Speaker 7: a really long stretch of losing streak. If you want
Speaker 7: to see the where we're seeing action, of course, it's Bitcoin.
Speaker 7: It's up thirty percent ever since Trump has declared victory.
Speaker 7: And we're looking actually at the sailor buffet ratio so
Speaker 7: as we know, Warren Buffett's Berkshire Hasaway is an established company,
Speaker 7: it tracks more in names so to speak, and micro
Speaker 7: Strategy tracks Bitcoin well. That ratio, which measures the relative
Speaker 7: stock performance of both so its highest level since two
Speaker 7: thousand and it's not really a surprise because micro Strategy
Speaker 7: is up over four hundred percent while Berkshire Hathaway is
Speaker 7: up just around thirty one percent. And for more conviction,
Speaker 7: we saw six billion flowing through crypto funds. That's a record, Caroline,
Speaker 7: So it's really interesting to see the two spaces as
Speaker 7: this administration plays out.
Speaker 4: Okay, bloombergs Isabelle Lee, thank you very much. We mentioned
Speaker 4: it a moment ago, Ali Barber reporting some solid growth
Speaker 4: in its businesses outside of China international cloud divisions and
Speaker 4: that kind of helped set some of the drag from
Speaker 4: an anemic Chinese e commerce business.
Speaker 6: Going back to.
Speaker 4: Henry Wren out of London's been tracking this print and
Speaker 4: that sums up the story.
Speaker 6: But what's going on, particularly.
Speaker 4: In mainland China with the Chinese consumer that has at
Speaker 4: least the US listed shares moving downwards.
Speaker 8: And as you said, this is certainly a result that
Speaker 8: has some good and bad But the bad part is
Speaker 8: of course the local e commerce business, because this is
Speaker 8: the two thirds of ali Baba's revenue generation, and what
Speaker 8: we've been seeing for this quarter is still anemic because
Speaker 8: the revenue that ali Baba generates from third party merchants
Speaker 8: that grew only two percent during the quarter, So that's
Speaker 8: not a sort of rebound that investors have been hoping for.
Speaker 8: And a direct cell from Ali Baba's platform also stuck
Speaker 8: in the decline as well. That really shows that consumer
Speaker 8: sentiment in China is still weak, although this morning that
Speaker 8: we have some more positive retail sales state data in
Speaker 8: October showing that the retail sales actually expanded by four
Speaker 8: point eight percent, which is the fastest pace in eight months. However,
Speaker 8: we have to take in an account that these results
Speaker 8: came between June and September, and during that period we
Speaker 8: can say that the consumer sentiment.
Speaker 6: Is really not on amend just yet.
Speaker 3: International growth, how resilient is that going to be in
Speaker 3: the face of geopolitical headwinds, most dominantly here in the
Speaker 3: United States we're anticipating in new administration which isn't very
Speaker 3: China friendly.
Speaker 8: Yeah, So, as we discussed the domestic e commerce business
Speaker 8: has been weak for quarters and quarters, so they have
Speaker 8: to find a new growth engine. It used to be Cloud,
Speaker 8: but Cloud that growth engine has been sputtering for several
Speaker 8: quarters in a row. Now it has showed some signs
Speaker 8: of recovery, but still a long way to go. So
Speaker 8: another way to expand is through overseas business. What we
Speaker 8: see from pdd door as well, which we've been seeing
Speaker 8: from team.
Speaker 6: Explosive growth in the US.
Speaker 8: For Ali Baba, the focus has been in other Asian markets.
Speaker 8: We're talking about Malaysia, Indonesia, those markets, and they've been
Speaker 8: doing quite well, although we would have to point out
Speaker 8: that Ali Baba is still burning.
Speaker 6: Cash in those markets.
Speaker 8: What we've been seeing in the past quarter is they
Speaker 8: are narrowing losses and we see the margins has been improving,
Speaker 8: although it's still some distance away from break even.
Speaker 3: Henry Wren has been across all of these Chinese e
Speaker 3: commerce players.
Speaker 5: We thank you.
Speaker 3: Now and we're going to turn our attention a minute
Speaker 3: to SpaceX. It's preparing a tender offer in December. The
Speaker 3: two hundred and fifty billion dollar valuation. We're going to
Speaker 3: get to those reports. That's next.
Speaker 5: This is bloe Meg.
Speaker 4: Technology SpaceX is preparing to launch a tender offer in
Speaker 4: December that will sell existing shares in the business at
Speaker 4: about one hundred and thirty five dollars each. That's according
Speaker 4: to a report in the Financial Times, where they cited sources.
Speaker 4: Bloomberg's Bris ein Horn is here with us and Bruce
Speaker 4: just for a Bloomberg technology audience. The basics a tender
Speaker 4: is where employees or some early investors sell shares. There's
Speaker 4: no new capital raise. The main point, I think is
Speaker 4: a valuation of two hundred and fifty billion dollars or
Speaker 4: more is quite eye watering. Put SpaceX up there. What
Speaker 4: else do we know?
Speaker 9: That's right?
Speaker 10: And so typically SpaceX does these offerings twice a year.
Speaker 10: The previous valuation, which was in mid year, was around
Speaker 10: two hundred and ten billion dollars, So two hundred and
Speaker 10: fifty billion dollars of course a big jump up. It
Speaker 10: would be a record for a US company. It's not
Speaker 10: a record for a startup. The record for a startup
Speaker 10: is two hundred and sixty eight billion dollars for Byte
Speaker 10: downs to the Chinese parent of TikTok. Just to give
Speaker 10: you a sense of just how much SpaceX's valuation has increased.
Speaker 10: A year ago, when there was a similar offer, the
Speaker 10: valuation was one hundred and eighty billion dollars.
Speaker 3: It feels for some as though the valuation goes higher,
Speaker 3: maybe it gets a Trump Elon Musk bump. Maybe everyone's
Speaker 3: just trying to plow in money to associate themselves with
Speaker 3: the success of Elon Musk and the considerable perhaps ease
Speaker 3: with which he'll get better regulatory approvals when he's associated
Speaker 3: with the next administration. Is that something you eyeing, Bruce, certainly,
Speaker 3: gwinnshot while the president of SpaceX is talking about that
Speaker 3: very thing this morning.
Speaker 10: It's a good point that, of course Elon Musk does
Speaker 10: have the ear of President elect Trump. That said, though
Speaker 10: this is a lot more than just a politics story.
Speaker 10: Starlink has more than six thousand satellites in operation. Gwinshot
Speaker 10: well this morning, speaking at a conference in New York,
Speaker 10: said that the company has launched more than seven thousand satellites.
Speaker 10: This puts Starlink far ahead of any competitor. So they
Speaker 10: are really the dominant player for now, at least in
Speaker 10: lower th orbit. The satellite communication, which the valuation partly reflects.
Speaker 4: You know, Bruce, the focus on SpaceX is about reusability.
Speaker 4: The Falcon generation of rocket can go up and then
Speaker 4: come back down and be used again. But our attention
Speaker 4: is going to turn to Starship. What did Shotwell say
Speaker 4: about Starship? And I guess should the audience be looking
Speaker 4: out to see another test anytime soon?
Speaker 10: Yes, so there will be another test soon. This morning
Speaker 10: Gwinschotwell said that we should expect that on Tuesday next week.
Speaker 10: This would be the latest test of Starship. Starship is
Speaker 10: just a level, a whole other level bigger than anything
Speaker 10: that's existed up until now. And in her comments this morning,
Speaker 10: she also did say that the company expects to launch
Speaker 10: direct to sell service sometime before the end of the year,
Speaker 10: sometime in the next month or so. That would also
Speaker 10: put SpaceX out front in another business that's really just
Speaker 10: getting started, offering satellite based communication that could go directly
Speaker 10: to cell phones without having to have any sort of
Speaker 10: satellite dish or any other type of equipment.
Speaker 3: More than four hundred Starship launches are possible in the
Speaker 3: next four years, according to Quench Shutwell, extraordinary numbers on
Speaker 3: both evaluation and the amount of launches. Briseiinhorn, we thank
Speaker 3: you Meanwhile, let's talk about Elon Masqu's Tesla seeing a
Speaker 3: big reaction alongside other EV makers.
Speaker 5: Today we get a reprieve. It was yesterday that a.
Speaker 3: Report hit from Reuter's saying that Donald Trump and his
Speaker 3: administration is set to end some seven and a half
Speaker 3: thousand dollars EV tax credits that are currently out there.
Speaker 3: Joining us is Terry o Day, in charge Energy COO Terry.
Speaker 3: So the point here is that when you buy an
Speaker 3: EV you can get a nice, juicy tax credits seven
Speaker 3: and a half thousand dollars and that would be wiped
Speaker 3: out potentially by the next administration.
Speaker 5: How important, How integral is that tax credit to demand?
Speaker 11: Well, it's not clear yet, but we do know that
Speaker 11: it is important. It's very valuable to the industry, and
Speaker 11: it's important because of both consumers relying on it and
Speaker 11: manufacturers relying on it. So it's really about EV jobs
Speaker 11: when it comes down to it. And the current incentive
Speaker 11: is only available to American made vehicles, So what we're
Speaker 11: really talking about is manufacturing in the US, and that's
Speaker 11: why this comes as a bit of a surprise. And
Speaker 11: the last time this personal tax credit was challenged, it
Speaker 11: had a lot of support in Congress from states that
Speaker 11: are manufacturing the components for electric vehicles, like states like
Speaker 11: Tennessee and South Carolina and Michigan and Illinois. They wanted
Speaker 11: to protect jobs and that's why they protected this tax
Speaker 11: credit last time. So we'll see how this proposal goes
Speaker 11: in Congress.
Speaker 3: Many of those states, not blue states per se, potentially
Speaker 3: read and therefore affecting home territory to certain extent for
Speaker 3: your business, when you think about the infrastructure play of this,
Speaker 3: does this set back the adoption.
Speaker 5: Of evs in the longer term?
Speaker 3: Do you think I know it's hypothesis here, but does
Speaker 3: that make you think about readjusting your strategy?
Speaker 12: It definitely has that potential.
Speaker 11: I mean, for our business, we rely on demand from
Speaker 11: consumers and from businesses, so this is a personal task
Speaker 11: credit for individuals. There are other incentives in the industry
Speaker 11: that are definitely on the shopping block from this administration.
Speaker 11: So there's an important fight to protect a lot of
Speaker 11: those incentives.
Speaker 4: Now, Terry, you said this is a surprise, is it really?
Speaker 4: Elon Musk has been talking about scrapping subsidies for years.
Speaker 6: He has been close to.
Speaker 4: Trump throughout the election process and now in an advisory
Speaker 4: role because those will out act outside of government.
Speaker 6: He will have Trump's here.
Speaker 4: But also we had decelerating EV sales growth anyway for
Speaker 4: the latter part of biden'sministration. Why is it a surprise to.
Speaker 11: You, Well, I think decelerating sales growth was going to
Speaker 11: happen anyway, right, because when you're growing year over year
Speaker 11: double digits, you cannot continue that forever, just the law
Speaker 11: numbers doesn't allow it. So deceleration was going to happen.
Speaker 11: But this incentive has broad support, as I was saying,
Speaker 11: So that's why it comes as a bit of a surprise.
Speaker 11: And to be saying this so early in the transition
Speaker 11: is I think also kind of surprising. Look, this is
Speaker 11: not a significant tax credit and the range of new
Speaker 11: tax policy we're going to be seeing coming out of
Speaker 11: this administration, and it favors US manufacturing, which this new
Speaker 11: administration has been saying is what they really want.
Speaker 12: So they're looking for manufacturing. This is something that does that.
Speaker 4: Terry, Don't get me wrong, I've got a Tesla model
Speaker 4: why I think Carroy I'm right and saying, also has
Speaker 4: an EV I leased it. It was a competitive lease
Speaker 4: because of the seventy five hundred dollars tax credit. But
Speaker 4: big picture, what is it that's going to put electric
Speaker 4: vehicle sales in North America at least back on a
Speaker 4: path to accelerating sales growth. What do you want to
Speaker 4: see proactively the Trump administration do well?
Speaker 11: The most important thing is that California has the right
Speaker 11: to regulate tailpipe emissions today, and about a dozen other
Speaker 11: states have signed.
Speaker 12: On to that.
Speaker 11: They have regulations forthcoming that are affecting fleets, So fleets
Speaker 11: would be required to buy evs when those fleets are
Speaker 11: larger than fifty vehicles in their fleet, and manufacturers would
Speaker 11: be required to sell to those fleets, so that dual
Speaker 11: regulation is in jeopardy. And overall, California's right to regulate
Speaker 11: tailpipe emissions is what created the EV industry in the
Speaker 11: first place. We think we can compete on an equal
Speaker 11: footing with gas and diesel. Today, my customers like PEPSI
Speaker 11: and FedEx and ups and school districts across the country
Speaker 11: are already saving money by going to electric because it's
Speaker 11: cheaper than gas and diesel on a total operating cost.
Speaker 12: So we think we can compete on an equal putting.
Speaker 11: But it's important to have these regulations in place to
Speaker 11: just kind of get over the hump of these pilot
Speaker 11: programs and enable it.
Speaker 12: To go to scale.
Speaker 3: In so saying that terry, it almost makes you think, well,
Speaker 3: why have them if already you're able to compete. That's
Speaker 3: sort of therein lies the argument, and going back to
Speaker 3: the consumer right now, is it that you need to
Speaker 3: compete by what you do. Many people are reticent to
Speaker 3: commit fully to an EV. They've been going back to
Speaker 3: a hybrid model because they're worried about infrastructure and alack thereof.
Speaker 12: Yeah, and that's the real trick here.
Speaker 11: I think, you know, committing capital to build out an
Speaker 11: industry like this is extremely risky. So those regulations provide
Speaker 11: the guardrails for investment. It attracts private investment and creates jobs.
Speaker 11: And so that's really what this is about, is not
Speaker 11: the you know, favoring one industry over another, but really
Speaker 11: just giving enough certainty to investors that they can put
Speaker 11: capital into the space to continue to grow that charging infrastructure,
Speaker 11: to continue to convert their fleets and do the things
Speaker 11: that we want to do for this space.
Speaker 4: President Elect Trump's point, i think is not that he's
Speaker 4: antiev but that he's not fully all in ev he
Speaker 4: wants choice. Terry O'Day in charge energy. Soah, great to
Speaker 4: have you on the program.
Speaker 9: We're just getting started.
Speaker 13: And the thing I remember about last week is when
Speaker 13: Donald Trump was in this room, everybody else was celebrating.
Speaker 13: He was stone cold ready for the next step. But
Speaker 13: I also want to thank him for making sure that
Speaker 13: Elon Musk and I own a position to start the
Speaker 13: mass deportations of millions of unelected federal bureaucrats out of
Speaker 13: the DC bureaucracy. That too, is how we're going to
Speaker 13: save this country. And I don't know if you've got
Speaker 13: to know Elon yet, but he doesn't bring a chisel.
Speaker 13: He brings a chainsaw, and we're going to be taking
Speaker 13: it to that bureaucracy.
Speaker 9: It's gonna be a lot of fun.
Speaker 3: Entrepreneur Vivek Ramaswami, who has recently chosen by President elect
Speaker 3: Donald Trump to co lead the new Department of Government
Speaker 3: Efficiency along with Elon Musk, to cut excess regulation, it says,
Speaker 3: and expenses. Let's discuss this with Jennifer Pallack Pulker.
Speaker 5: Sorry, it's a Friday.
Speaker 3: Jennifer Pulker, Senior Fellow at Niscannon Center and former President
Speaker 3: Barack Obama's deputy Chief Technology offers a boy, you have
Speaker 3: got inside knowledge about how easy or hard it is
Speaker 3: to affect policy change within a civil service that already exists.
Speaker 3: Look Vivek Ramaswami saying it will be fun to take
Speaker 3: a chainsaw to it. For many who work there, this
Speaker 3: won't be fun.
Speaker 5: But what's the reality.
Speaker 3: Do you agree that, in principle efficiency needs to be found?
Speaker 14: I agree that government has to get better at doing
Speaker 14: what we say we're going to do, and I think
Speaker 14: our inability to do that has I've created the opening
Speaker 14: for this DOGE and sort of other initiatives that you
Speaker 14: see coming out of the Trump White House. Now there's
Speaker 14: so many questions about this. You have significant confluence of interest,
Speaker 14: especially for Elon Musk. They have established this thing outside
Speaker 14: of government, so it's unclear if they really intend to
Speaker 14: just rely on executive action or really get.
Speaker 5: Involved with Congress.
Speaker 14: So there's some questions about the whether they can be effective.
Speaker 14: But I do think that there is a real problem
Speaker 14: behind all of this rhetoric that needs to be handled
Speaker 14: with probably more care than the way that Musk and
Speaker 14: Ramaswami are talking about it.
Speaker 3: Jediv I do want to be naive to the fact
Speaker 3: that people have been probably trying to make government more
Speaker 3: efficient for a little while.
Speaker 5: So what is it that hasn't been done? Oh, we
Speaker 5: at the level now.
Speaker 3: That this sort of decision not to care, not to
Speaker 3: be precise, but actually to just go at it with
Speaker 3: the chainsaw. Just every other Social Security number is out.
Speaker 3: Is that the place that we've got ourselves to.
Speaker 14: I don't think it has to be. I think a
Speaker 14: good analogy might be brush fires. So I live part
Speaker 14: time in California in a very very high fire risk area,
Speaker 14: and I was told when we moved there, you know,
Speaker 14: backwen natives all in the land, there were fifteen trees
Speaker 14: per acre, sorry, yes, per acre, and now there's fifteen
Speaker 14: hundred and so the fires now are bigger, and we
Speaker 14: can do fire management. Now, we've learned a lot, and
Speaker 14: we can mitigate the worst damage.
Speaker 5: But when you haven't cleared out.
Speaker 14: The craft for many years, and I think that is
Speaker 14: unfortunately what has happened in our government is that we haven't,
Speaker 14: then we get these conflagrations.
Speaker 5: That burn out of control.
Speaker 14: I hope we can stop that, but we are going
Speaker 14: to have some burning, and some of it will end
Speaker 14: up being healthy over the long run. It's in a
Speaker 14: difficult situation to be in, and I think that public
Speaker 14: servants to Jennifer feel nervous about this, have.
Speaker 4: A road to be We heard from Vivek Ramaswami in
Speaker 4: that SoundBite, but I had an exchange with him on
Speaker 4: x the social media platform yesterday, and as part of
Speaker 4: that exchange, I flagged the idea that investors are basically
Speaker 4: selling out of companies that are historically main contractors to
Speaker 4: the government.
Speaker 6: For a reason.
Speaker 4: They think that you know that mister Ramaswami, who calls
Speaker 4: Uncle Sam not supposed.
Speaker 6: To be Uncle Sucker. They think he'll be successful. I
Speaker 6: guess that I would just like you.
Speaker 4: To outline the reality of doing that, canceling long term contracts,
Speaker 4: looking at automate vendors, and ultimately reducing headcamp at government
Speaker 4: agencies based on your experience having worked within it.
Speaker 5: If we do that, there.
Speaker 14: Will be damage in all sorts of ways. There's going
Speaker 14: to be damage to.
Speaker 5: Our ability to protect our nuclear arsenal.
Speaker 14: For instance, Michael Lewis writes about this in the fifth Risk.
Speaker 5: It will chill your bones. We do not want that.
Speaker 14: On the other hand, we do need some changes, and
Speaker 14: we need when we do those changes to be thoughtful
Speaker 14: about preserving the foundations that this country is built on. Now,
Speaker 14: this isn't a Doge proposal, but if you look at
Speaker 14: the schedule F proposal, for instance, it's not actually addressing
Speaker 14: the real problems of being difficult to fire under performers,
Speaker 14: for instance. It's going at the core principles of a
Speaker 14: independent civil service that's able to tell the truth, that
Speaker 14: is hired and fired on the basis of merit. We
Speaker 14: need real civil service reform, not schedule F.
Speaker 4: Jennifer Palker, Senior fellow at NISCAN and sent I really
Speaker 4: appreciate your time here on Bloomberg Technology.
Speaker 3: Welcome back to Blue Meg Technology. I'm Caroline Hyde in
Speaker 3: New York and I met.
Speaker 6: Love Low in San Francisco. What's going on in the market, Scarret,
Speaker 6: I've risk off.
Speaker 5: Kind of a day.
Speaker 3: Look, we're back to fundamentals yourfuria. The highs of the
Speaker 3: Trump trade just ease a little bit, and we've refocused
Speaker 3: on the other guy, that is, of course, the head
Speaker 3: of monetary policy. We think about what Jay Power is
Speaker 3: saying in in terms of the FED and rate cuts,
Speaker 3: in the market really pairing back how likely that cut
Speaker 3: is for December.
Speaker 5: We're off by almost three percent.
Speaker 3: You can see the sudden jarring move that we've got
Speaker 3: on this last day of trade. It is the worst
Speaker 3: week for the Nasdaq, the main benchmark now's that one
Speaker 3: hundred at least since going back to the beginning of September.
Speaker 3: So we have got a sort of a bit of
Speaker 3: a pain trade to end the week. Move on and
Speaker 3: have a look at what's happening on the individual movers
Speaker 3: because we're actually back to fundamentals when it comes to
Speaker 3: earnings as well. Ed I China, like what's happening with
Speaker 3: some of the chip makers.
Speaker 5: Firstly, Tesla is up four percent.
Speaker 3: It's like the only Magnificent seven company that is on
Speaker 3: the higher side from the benchmark today it pulls up,
Speaker 3: but the rest of the Mags seven are pulling down
Speaker 3: on a points perspective, and really that's a relief rally
Speaker 3: after yesterday's sell off from the back of that ev news.
Speaker 3: Applying Materials down eight percent, we're seeing it trade at
Speaker 3: the lowest level since February of this year. This is
Speaker 3: a chip equipment maker like asml over in Europe. This
Speaker 3: is the US version, and look, it's signaling that perhaps
Speaker 3: everything in Chipland isn't all that rosy if you strip
Speaker 3: out AI again, we're thinking industrial or thinking autos, and
Speaker 3: we're thinking China. And I'm looking at in video what
Speaker 3: does this reader cross mean for in video? When we
Speaker 3: get its earnings on November the twentieth ed key for
Speaker 3: there were down by two and a half percent. Of course,
Speaker 3: the key points drag on the day. What are you
Speaker 3: looking at?
Speaker 4: Well, let's go back to the chips and do a
Speaker 4: deep dive bloomberg z and King is here with us
Speaker 4: in San Francisco on Applied Materials. It's interesting because part
Speaker 4: of kind of the bigger tech markets discussion is we've
Speaker 4: got over the election.
Speaker 6: Now and earnings are with US.
Speaker 4: Applied Materials is America's biggest chip equipment maker. Was there
Speaker 4: anything in it that was kind of consistent with what
Speaker 4: we've heard from ASML the big themes about AI investment
Speaker 4: and those cutting edge machines or China or anything else.
Speaker 15: Yeah, No, that's one hundred percent consistent with what we've
Speaker 15: heard from others. Spoke with the CEO yesterday after the
Speaker 15: release and he was like, look, everything's Okay, well, you know,
Speaker 15: there's nothing to worry about. The long term picture for
Speaker 15: this industry is fantastic. I'm not going to worry about,
Speaker 15: you know, the odd fluctuation here and there on a
Speaker 15: quarterly basis. Unfortunately for him, investors are because you know,
Speaker 15: you have to be perfect with the amount of money
Speaker 15: that's been put into these stocks, with the expectations that
Speaker 15: exist around AI. Our performance is the only performance.
Speaker 3: Well said, I think a prior to this on the year,
Speaker 3: they had actually been up to the tune of about
Speaker 3: fifteen percent.
Speaker 5: Now were only up about five percent. In the reader
Speaker 5: cross is important because we're all.
Speaker 3: Going to be obsessing about in video next week, and
Speaker 3: this is your main company that you focus on.
Speaker 5: What does it mean for in video?
Speaker 9: Yeah?
Speaker 15: I mean again, the word AIAIAI keeps cropping up over
Speaker 15: and over again. What we've heard with regards to in
Speaker 15: video has been very positive.
Speaker 11: Right.
Speaker 15: The only thing that's going to hold them back will
Speaker 15: be availability of supply. Can they get enough chips to
Speaker 15: meet demand. Everything that we're hearing in terms of the fundamentals,
Speaker 15: in terms of the sell through, in terms of the
Speaker 15: capex's planned is absolutely positive.
Speaker 4: You've reported overnight that TSMC, the world's largest contract manufacturer
Speaker 4: of chips, is finalizing its awards from the US government
Speaker 4: through the Chips Act. What's new and why is that significant?
Speaker 15: Oh, it's now a legally binding contract between the United
Speaker 15: States government and TSMC. So not I won't say there's
Speaker 15: no going back, but it makes going back a lot harder.
Speaker 15: It shows that they've already achieved some of the things
Speaker 15: that they were supposed to do. They're going to get
Speaker 15: a billion dollars of federal money this year, we were
Speaker 15: told yesterday. So in general it's a positive sign. It's
Speaker 15: moving that whole bill forward, obviously ahead of the administration handover.
Speaker 6: Blimbozy and King and all things chips. Thank you very much, Carol.
Speaker 3: Sticking with chips a little bit, it's time for talking
Speaker 3: tech ed and first up shares of Samsung. They'd been
Speaker 3: up in South Korean trade today because the tech giant
Speaker 3: is surprising investors with a mammoth buyback of seven billion
Speaker 3: dollars worth of its own stock over the next year.
Speaker 3: The move comes, of course, the mid investor concerns that
Speaker 3: the growth in the firm's memory chip business has been lackluster,
Speaker 3: Struggling to keep up with rival sk Heinex, for example. Meanwhile,
Speaker 3: Elon Musk was ramping up his feud with Sam Altman.
Speaker 3: In a revised court filing must highlighted and trust concerns
Speaker 3: by OpenAI, alleging that the company is trying to corner
Speaker 3: the Generator AI market and sacrificing safety.
Speaker 5: OpenAI didn't immediately respond to.
Speaker 3: A request for comment, and the Ultimate Fighting Championship will
Speaker 3: be looking for a decade long partnership when it shops
Speaker 3: around its media rights next year. This is all according
Speaker 3: to the company CEO Dana White, who sat down with
Speaker 3: Boomberg TV yesterday. He also spoke about his relationship with
Speaker 3: the President elect Trump.
Speaker 5: Just take a listen.
Speaker 16: He's the one that when we first bought the company
Speaker 16: and venues didn't love the UFC. Back then, he opened
Speaker 16: up the TAJ and New Jersey and said, we did
Speaker 16: our first couple of events there at the TAJ and
Speaker 16: he showed up for the first one and stayed till
Speaker 16: the last fight. That was when he became a fan.
Speaker 12: I know you've been friends with him for a long time.
Speaker 12: Any plans to actually work for him in his new administration.
Speaker 16: I want nothing to do with politics.
Speaker 9: No I do not I know.
Speaker 4: Let's stay in the realm of fighting and competitive sports.
Speaker 4: Netflix shares actually down two percent. Remember tonight is the
Speaker 4: big fight. It is streamed exclusively on Netflix. Jake Paul
Speaker 4: versus Mike Tyson. Don't know about you, Carrot. It's been
Speaker 4: all over my social media feeds and it's an interesting
Speaker 4: moment for Netflix whether they can pull off There he
Speaker 4: is and there he Is. We'll be tuning in one
Speaker 4: to watch. You can discuss it on the show on Monday.
Speaker 4: Coming up on this edition of Bloombog Technology. Business leaders
Speaker 4: from around the world are gathered in Lima for apex
Speaker 4: CEO summit. That includes Google's VP of Government Affairs Corumbatia,
Speaker 4: and we're going to hear from him next Stay with us.
Speaker 6: This has Boombog Technology.
Speaker 3: Apex CEO Summit. It's been underway for the last few days.
Speaker 5: In Lima, Peru.
Speaker 3: Global business leaders gathered to discuss the latest in the
Speaker 3: space sector, in AI policy, and much more.
Speaker 5: Most Lisa Bromo, it's.
Speaker 3: Actually sat down with Google's VP of Government Affairs, Kuran Batia.
Speaker 5: Take a listen.
Speaker 17: In all honesty, I've been here today. The conversation actually
Speaker 17: has mostly been and I've been meeting with foreign ministries
Speaker 17: government officials has really mostly been about how can they
Speaker 17: get the benefits of this amazing new technological revolution that's
Speaker 17: happening around artificial intelligence. So they want to hear about
Speaker 17: what can they be doing in terms of building infrastructure,
Speaker 17: what can they be doing in terms of skilling their people.
Speaker 17: There are you know, there's an awareness that there is
Speaker 17: geopolitics that impacts the technology sector as well as everything else.
Speaker 17: But frankly, it's been interesting to me to see how
Speaker 17: much interest and appetite there is around getting that technological edge.
Speaker 18: So how much have you been surprised or why is
Speaker 18: it important for Google to be so heavily invested in
Speaker 18: areas like Latin America, like zact East Asia.
Speaker 17: Well, first of all, it kind of starts with our
Speaker 17: mission as a company, which is to organize the world's
Speaker 17: information and make it universally accessible and useful.
Speaker 9: And that universal part.
Speaker 5: Is really core to our being.
Speaker 17: It's a recognition that Google's not fulfilling its mission if
Speaker 17: we're not operating in places like Latin America, like Southeast Asia,
Speaker 17: East Asia. So I think part of it literally has
Speaker 17: to do with what it is we do every day,
Speaker 17: and as the technology expands and as our business expands,
Speaker 17: these regions.
Speaker 12: Become more and more important.
Speaker 17: Obviously, you can't look at the growth that's happening in
Speaker 17: places in East Asia. Latin American markets are doing very
Speaker 17: well and not being encouraged by sort of we're seeing.
Speaker 4: That was Corumbatia, Google VP of Global Public Policy and
Speaker 4: Government Relations. Let's get out to Lima, Peru and bring
Speaker 4: in Bloombergs Lisa Rumvitz, who's been there for a few days.
Speaker 4: And what's notable is the presence of big tech, right,
Speaker 4: not just Google, Microsoft as well. What is it that
Speaker 4: they were actually doing there, like give us a bit
Speaker 4: more of a sense of the role that those tech
Speaker 4: names played in the discussion.
Speaker 18: It's a good question, And first I just want to
Speaker 18: say it is notable that the big tech firms were
Speaker 18: here because there were so many US companies that were absent.
Speaker 5: We saw big.
Speaker 18: Tech, we saw energy companies, we saw JP Morgan, but
Speaker 18: other than that, US companies were kind of more on
Speaker 18: the sidelines and Chinese companies much more present. Now when
Speaker 18: you talk about some of the big tech names, they
Speaker 18: want to make sure that they get their footprint as
Speaker 18: everybody clamorous for the artificial intelligence bedrock that a lot
Speaker 18: of people think will establish the next generation of business.
Speaker 18: But here's the question, how can they do that when
Speaker 18: regulatory regimes are not set? And that was sort of
Speaker 18: the big existential aggs hanging over all of this. How
Speaker 18: do you deal with the fact that President Trump, president
Speaker 18: elect Trump will have different policies than President Biden, and
Speaker 18: that even now we don't have a real sense of
Speaker 18: what counts as national security when some of these companies
Speaker 18: are expanding and what does.
Speaker 3: It so true? Lisa, and we heard from Xijingping at
Speaker 3: the event, the Chinese narrative coming and saying, look, let's
Speaker 3: not backtrack, let's stick to a global economy here. But
Speaker 3: how much do you take that at face value at
Speaker 3: the moment? How all companies able to invest?
Speaker 18: Well, this is a good question, and the answer is
Speaker 18: they look at where they can and what they do know.
Speaker 18: And I think that a lot of these companies have
Speaker 18: made inroads when it comes to, for example, big tech.
Speaker 18: They're looking for countries that have some energy infrastructure. So
Speaker 18: a place like this which has a copper and lithium
Speaker 18: and a whole host of other natural renewable energy sources
Speaker 18: that is appealing on the large your scale, though, there
Speaker 18: is a hesitance in certain sectors to really invest, and
Speaker 18: you are seeing that, which is maybe why you're not
Speaker 18: seeing some of the more consumer facing sectors like retail
Speaker 18: really coming down here. But you're right, there is this
Speaker 18: question of how do you invest in a time of change.
Speaker 18: The answer is carefully, and that's what people are saying.
Speaker 18: You are seeing on the margins, but it's select industries
Speaker 18: and otherwise there is a bit of a paralysis as
Speaker 18: people try to figure out what exactly comes next.
Speaker 3: Lisa so busy, great conversations, key among them, Jamie Dimond.
Speaker 3: We appreciate it, Lisa Bramowitz. On the ground there in Peru.
Speaker 3: There's so much to unpack from the US election in
Speaker 3: terms of geopolitics as well from a venture capital standpoint too,
Speaker 3: from AI policies, tax implications.
Speaker 5: Let's just get to it with a race between US
Speaker 5: and China.
Speaker 3: Let's discuss it with a venture investing on today's VC Spotlight.
Speaker 3: Alfred Chuang Founer, General partner at Race Capital. Someone who
Speaker 3: has built businesses yourself, be a systems for example, And
Speaker 3: I'm really interested Alfred at this moment of how much
Speaker 3: you are putting your mind to the future of US
Speaker 3: China relations, the US global relations at this point.
Speaker 1: Apparently, good morning, thank you for having me back by.
Speaker 1: Good to CEEO.
Speaker 9: This is a very interesting time. But I think just.
Speaker 1: If you look at where all the activities are in
Speaker 1: tech and inventure at this point, pretty much everything is
Speaker 1: AI driven, whether they are like what we do, which
Speaker 1: is straight in the plumbing. So I'm like the plumber
Speaker 1: of Silicon Valley. Try to ment all the infrastructure, which
Speaker 1: is all the critical pieces to enable the enterprise application.
Speaker 1: Do now have a new network inside and be able
Speaker 1: to be very smart and be very efficient and be
Speaker 1: extraordinarily efficient. The China and the US part of it
Speaker 1: is because the way that we train the data for
Speaker 1: the large model itself, we're not completely separated.
Speaker 9: So there's a model for China, there's.
Speaker 1: A completely different model what we've been doing actual multiple
Speaker 1: models in the United States.
Speaker 9: Because I think a lot of it has to do
Speaker 9: with history.
Speaker 1: Our data are just so much more organized, and we
Speaker 1: have systems that we've been preparing for the past decade,
Speaker 1: you know, like all the things that we're put into
Speaker 1: Spark data breaks, for example, we're all grape preparation for
Speaker 1: organizing this data to make the computer thing like human.
Speaker 1: So US has a huge advantage at this point in
Speaker 1: time and time and getting ahead of this program.
Speaker 3: I'm interested in just the supply chains fact a bit
Speaker 3: there out for you talk about the efficiency, the clear
Speaker 3: efficiency that's been built in the US, but we're about
Speaker 3: to pledge you see, tariffs, so that we can't be
Speaker 3: unaware of the fact that a lot of things are important,
Speaker 3: even at the most high end technological element. Will that
Speaker 3: put pains to efficiency here in the US.
Speaker 1: I think there's already pain. I think obviously there's more
Speaker 1: pain to the people that are not now allowed to
Speaker 1: be importing the eight one hundred and one hundred form
Speaker 1: En video. They're equivalently Obviously, supply chain is not like
Speaker 1: what it used to be before COVID, so we have that
Speaker 1: slowdown already at this point in time. There's never back
Speaker 1: to non one. By the way, we are still very
Speaker 1: behind in this country. So we're you know, we don't
Speaker 1: have any babs right well, pfares have limited availability. We
Speaker 1: are dependent on loot of fabs in Taiwan. Some of
Speaker 1: these lower trips are building China still, so there's call
Speaker 1: dependency between these countries in order to continue to advance.
Speaker 9: At Ai and.
Speaker 1: I'm you know, have great Hopdad, or the great reasons
Speaker 1: of continuing to progress mankind, we don't start this trade
Speaker 1: and which I don't think that will be the case,
Speaker 1: because it just will be dysfunction.
Speaker 4: I want to think about the environment a bit, Alfred.
Speaker 4: This week, for example, my colleagues and I reported that
Speaker 4: Data Breaks is doing a tender largely for employee liquidity.
Speaker 4: And that's a name that Data Breaks. That that's in
Speaker 4: your portfolio. But there are signed things are happening right,
Speaker 4: whether it's the IPO market, whether it's.
Speaker 6: Different kinds of exits through M and A.
Speaker 4: I'm going to ask you what you think kind of
Speaker 4: happens next, particularly under a Trump administration, for your portfolio
Speaker 4: companies and vcs that are looking for an exit.
Speaker 9: Yeah.
Speaker 1: At Berger to CEO, thank you for having me back.
Speaker 1: Database is in the unique case Database perhaps, which I
Speaker 1: believe is probably the best, the most exciting, the fastest
Speaker 1: growing large enterprise tech company and run by probably the
Speaker 1: best CEO ever.
Speaker 9: In enterprise tech. So they're in a unique place. I think.
Speaker 1: Whatever they're going to do in fundraising is their choice
Speaker 1: that they decided not to go to the proper marketplace
Speaker 1: they might have qualified to do so. And I think
Speaker 1: that's just by choice. And I think that choice come
Speaker 1: from which I believe in the past ten days is
Speaker 1: kind of how we feel with all the founders in
Speaker 1: the valley, which is we're going through a rebook process.
Speaker 1: Does rebook process will likely have a chance pose to
Speaker 1: relook at how the SEC, the FDC, the CTPB, how
Speaker 1: they're going to be conducting business, on their policies, how
Speaker 1: they're going to regulate, how to get regularly AI, how
Speaker 1: they're going to regulate other webprear technology, cryptos and other things.
Speaker 1: And I think we kind of were stuck for the
Speaker 1: last two three years, you know, in a place where
Speaker 1: it's very difficult to get anything. Then from that perspective,
Speaker 1: very little company, one IPO, very m and A happened.
Speaker 9: So I think there's a.
Speaker 1: Lot of new hook you know, we don't know, Yeah,
Speaker 1: I mean, the new admonstration won't start until the twentyeth
Speaker 1: of January. How are they going to do to do
Speaker 1: things differently to kind of re enable this ability to
Speaker 1: do some.
Speaker 9: Of these things.
Speaker 1: So I think I'm very optimistic I think next year
Speaker 1: is going to be an unreal great year for innovation
Speaker 1: and for our venture deployment.
Speaker 6: Capital out for it very quickly.
Speaker 4: The next area of growth for you, the fair the
Speaker 4: next area of growth. Where are you looking right now?
Speaker 4: We just have ten seconds?
Speaker 1: Okay, ten seconds without a doubt, AI enabled enterprise applications.
Speaker 1: Let's gette hundred percent efficiency on every individual they're using
Speaker 1: enterprice computing.
Speaker 9: That's where the growth would be.
Speaker 6: That was ten seconds.
Speaker 4: Alfred Trunk, founder and Race General Partner at Race Capital,
Speaker 4: Thank you very much. Plantable Foods has already harnessed the
Speaker 4: power of plants to manufacture the Ruby protein, which comes
Speaker 4: from duck weed. Now the company's looking to grow the
Speaker 4: popularity of the nutrient rich products with a new thirty
Speaker 4: million dollars Series B funding. Round here with more Plantable
Speaker 4: co founder Tony Martin's bacchini and welcome to the program.
Speaker 9: Thank you.
Speaker 4: Also known as water lentils. If you're not familiar with
Speaker 4: duck weed, I don't really know where to start other
Speaker 4: than you have some specific technology that has made something
Speaker 4: others have tried a success.
Speaker 6: Yeah, well we really tried to do it.
Speaker 19: Plantable is to work backwards from what the food industry needs, right.
Speaker 19: I think over the past couple of years, we've seen
Speaker 19: the food industry being overwhelmed with synthetic, unhealthy or elecgenic ingredients,
Speaker 19: and we started to look for a natural successor to
Speaker 19: these unhealthy ingredients that they're using today. We found that
Speaker 19: in an enzyme known as ribisco, which is funnily enough,
Speaker 19: one of the most abundant proteins on the planet and
Speaker 19: millions of people are consuming it on a daily basis
Speaker 19: because it's present in every leafy green. Now, then we
Speaker 19: started to look for the most cost efficient and environmentally
Speaker 19: friendly way of scaling ribisco, and we found that in
Speaker 19: this aquatic plant known as lemna or some other people
Speaker 19: might call it water lentils.
Speaker 4: And so, why do you need the thirty million dollars
Speaker 4: of what's the process from here?
Speaker 19: Yeah, So over the past couple of years, we've built
Speaker 19: out our first commercial manufacturing module in West Texas, and
Speaker 19: since then we've been able to start to fulfill some
Speaker 19: of the commercial demand that's out there in the market.
Speaker 19: But we're seeing that we aren't really able to keep
Speaker 19: up with the demand that's out there, and so we
Speaker 19: need to thirty million dollars in order to continue to
Speaker 19: expand our manufacturing operations in Texas to fulfill the commercial
Speaker 19: demand that's out there.
Speaker 5: So Tony, am I eating this now? Is it available?
Speaker 6: It is available?
Speaker 19: You can Actually there are some products on the market
Speaker 19: that contain our product at the moment, so absolutely you
Speaker 19: can eat it right now.
Speaker 3: Where are you in sort of the general approvals when
Speaker 3: it comes to FDA, when it comes to Food Science
Speaker 3: Authority as well.
Speaker 19: Yeah, great question. So at the moment we're self affirmed Grass.
Speaker 19: We're working with the FDA to get the final letter
Speaker 19: of no questions from their site. In the meantime, we're
Speaker 19: also working on a formal approval from the European Food
Speaker 19: Safety Authority, which we hope to get by the end
Speaker 19: of twenty twenty five early twenty twenty six.
Speaker 3: What's it like in the world of raising capital for
Speaker 3: food tech ad tech right now? Because it's been through
Speaker 3: to some peaks and troughs, shall we.
Speaker 19: Say, yeah, it's misogonistic as maybe the right word. But
Speaker 19: I think we've been working incredibly hard as a team
Speaker 19: to hit milestone after milestone and that has really allowed
Speaker 19: us to propel the company forward show that we can
Speaker 19: scale up, but also scale out our technology and prove
Speaker 19: that they're true product market fit for our ingredient while
Speaker 19: actually discovering new and new market opportunities every day of
Speaker 19: the week.
Speaker 4: Let's talk about the investors why they're interested in you?
Speaker 4: Are they traditional texts? And how did you go about
Speaker 4: doing this? It's a pretty tough environment. Actually, yeah, it
Speaker 4: is a pretty tough environment.
Speaker 19: I think like, why are these Why are the investors,
Speaker 19: both the financial and the strategic investors interested? Is for
Speaker 19: a couple of reasons, right, I think on the on
Speaker 19: the financial side, we've obviously been able to show the
Speaker 19: de risking of the technology, the de risking of the
Speaker 19: market risk, and it's now a matter of solving the
Speaker 19: operational risk as we move from being an R and
Speaker 19: D company to a full fledged manufacturing company very quickly.
Speaker 6: Chipotle is on there.
Speaker 4: What's the kind of go to market I'm assuming that's
Speaker 4: more a strategic partner, sure, and just financial Yeah.
Speaker 19: I think about Chipotle as a company that's really whose
Speaker 19: mission it is to produce food with integrity and basically
Speaker 19: create delicious, clean label and healthy foods for the consumers
Speaker 19: out there.
Speaker 9: And what we're able to do is We're able.
Speaker 19: To allow them to unlock new recipes or improve their
Speaker 19: current recipes without having to introduce new allergence or food
Speaker 19: safety risk containing ingredients.
Speaker 3: I'm going to look at the ponds near me in
Speaker 3: a whole new way water Lentils.
Speaker 5: That's their name.
Speaker 3: Plantable co founder Tony Martin's bikini.
Speaker 5: Great to have some time with you. Congratulations on the rais.
Speaker 19: Well.
Speaker 5: That does it for this edition of Bloomberg Technology.
Speaker 4: What a week, ed, Yeah, another astonishing week, a historic
Speaker 4: week in many ways in the context of the election,
Speaker 4: but also tech. Check out the podcast It's Worth the
Speaker 4: recap online on Apple, Spotify and also on iHeart. Big
Speaker 4: thank you to the team in New York and here
Speaker 4: in San Francisco.
Speaker 6: This is Bloomberg Technology.