1 00:00:01,520 --> 00:00:02,240 Speaker 1: From Mahard. 2 00:00:02,360 --> 00:00:06,800 Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN. 3 00:00:07,160 --> 00:00:11,680 Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 4 00:00:25,640 --> 00:00:28,000 Speaker 4: Live from New York and San Francisco. This is Bloomberg 5 00:00:28,040 --> 00:00:31,720 Speaker 4: Technology coming up. The race to reward the buy An 6 00:00:31,720 --> 00:00:35,040 Speaker 4: administration is against the clock to complete chipsack deals with 7 00:00:35,240 --> 00:00:38,440 Speaker 4: top companies before the Trump takes office. 8 00:00:39,120 --> 00:00:42,160 Speaker 5: And come to Saudi Arabia, the country's one hundred billion 9 00:00:42,200 --> 00:00:45,280 Speaker 5: dollar pitch to become an AI powerhouse hub. 10 00:00:45,159 --> 00:00:46,160 Speaker 6: And draftking shares. 11 00:00:46,200 --> 00:00:48,360 Speaker 4: They bounced back after earnings and a tough end of 12 00:00:48,400 --> 00:00:50,640 Speaker 4: the year for the online sports spelling company. We speak 13 00:00:50,680 --> 00:00:54,320 Speaker 4: with the CEO, but first let's check in on these markets. 14 00:00:53,880 --> 00:00:55,720 Speaker 6: Because I'll give you a five day chart. 15 00:00:55,960 --> 00:00:58,560 Speaker 4: Today we're just flat, slightly low on the Nazak one hundred, 16 00:00:58,600 --> 00:01:00,960 Speaker 4: coming off of those record highs, but we power to 17 00:01:01,040 --> 00:01:04,480 Speaker 4: new records on this particular benchmark. A florry of earnings 18 00:01:04,520 --> 00:01:06,440 Speaker 4: is something we need to dissect. So two is a 19 00:01:06,480 --> 00:01:08,600 Speaker 4: fed Rake cup that helps us push higher, but of 20 00:01:08,600 --> 00:01:11,279 Speaker 4: course the election result. Also, we're up five point two percent, 21 00:01:11,319 --> 00:01:12,959 Speaker 4: the best week since mid September. 22 00:01:12,959 --> 00:01:13,920 Speaker 6: Then what are you watching on the. 23 00:01:13,880 --> 00:01:16,080 Speaker 5: Micro So I think We're still in a stage where 24 00:01:16,080 --> 00:01:18,160 Speaker 5: you look at single names and we're thinking about winners 25 00:01:18,160 --> 00:01:22,160 Speaker 5: and losers. Post election day, Tesla continues to have momentum. 26 00:01:22,240 --> 00:01:24,840 Speaker 5: It is trading at its highest level since early May 27 00:01:24,880 --> 00:01:27,760 Speaker 5: of twenty twenty two, gone beyond a trillion dollars of 28 00:01:27,800 --> 00:01:29,679 Speaker 5: market cap, whether it closes there or not. 29 00:01:29,959 --> 00:01:31,840 Speaker 7: But there's the association. 30 00:01:31,360 --> 00:01:34,200 Speaker 5: Trump with Musk, and then there's the analysis of whether 31 00:01:34,480 --> 00:01:39,839 Speaker 5: Trump policy adjustments will impact negatively or positively that name. Elsewhere, 32 00:01:39,880 --> 00:01:42,520 Speaker 5: there is a scramble in DC in across this country 33 00:01:42,840 --> 00:01:47,120 Speaker 5: in the chip sector about what happens next. Intel is 34 00:01:47,200 --> 00:01:49,400 Speaker 5: modestly higher in the session, but on the week over 35 00:01:49,480 --> 00:01:52,280 Speaker 5: five days on track for its best week since June. 36 00:01:52,400 --> 00:01:54,840 Speaker 5: Could it be a beneficiary of the Trump administration? What 37 00:01:54,920 --> 00:01:59,880 Speaker 5: Bloomberg is reporting is that deals are done, negotiations settled 38 00:01:59,880 --> 00:02:02,800 Speaker 5: for Chips Act funding, but in some cases is their 39 00:02:02,800 --> 00:02:06,360 Speaker 5: renegotiation to try and actually get access to money through 40 00:02:06,400 --> 00:02:09,960 Speaker 5: the Biden administration before Trump two point zero takes effect 41 00:02:10,200 --> 00:02:14,160 Speaker 5: and President lank Trump takes office in January of next year. 42 00:02:14,240 --> 00:02:17,079 Speaker 4: Care I know Pat Gelsinger spoke to you after the 43 00:02:17,120 --> 00:02:19,720 Speaker 4: earnings with a frustration at how slow that money has 44 00:02:19,760 --> 00:02:21,720 Speaker 4: been coming out of the door. Ed, let's discuss that 45 00:02:21,760 --> 00:02:24,000 Speaker 4: all a little bit more from Bogs. Mackenzie Hawkins has 46 00:02:24,040 --> 00:02:27,200 Speaker 4: a great piece out just talking us through how chip 47 00:02:27,360 --> 00:02:31,000 Speaker 4: companies are basically racing, as is the Biden administration, to 48 00:02:31,080 --> 00:02:33,240 Speaker 4: get access to that Chips Act funding. 49 00:02:33,600 --> 00:02:34,840 Speaker 6: What is the latest. 50 00:02:36,400 --> 00:02:40,160 Speaker 8: So earlier this year, the Biden administration announced a slate 51 00:02:40,320 --> 00:02:42,840 Speaker 8: of multi billion dollar awards for some of the most 52 00:02:42,880 --> 00:02:45,600 Speaker 8: important companies in the semi collect industry to build factories 53 00:02:45,639 --> 00:02:48,519 Speaker 8: on American soil. The funding comes from the Chips Act, 54 00:02:48,520 --> 00:02:50,720 Speaker 8: where she signed in twenty twenty two. It's a major 55 00:02:50,800 --> 00:02:55,720 Speaker 8: bipartisan initiative to revitalize the American industry. Since those announcements, 56 00:02:55,760 --> 00:02:59,200 Speaker 8: companies have been going through pretty onerous due diligence, and 57 00:02:59,480 --> 00:03:03,000 Speaker 8: some of them still haven't reached final term sheets. So 58 00:03:03,320 --> 00:03:06,280 Speaker 8: now the Biden administration and those couple of companies in 59 00:03:06,320 --> 00:03:08,959 Speaker 8: particular Intel and Samsung and Micron are the big ones 60 00:03:08,960 --> 00:03:11,720 Speaker 8: that we're watching, are trying to get those incentives locked 61 00:03:11,720 --> 00:03:13,799 Speaker 8: down so they can get money out the door before 62 00:03:13,800 --> 00:03:16,440 Speaker 8: there's a potential for renegotiation under a Trump admin. 63 00:03:17,280 --> 00:03:19,799 Speaker 5: Intel Micron two of the names I showed a moment ago. 64 00:03:19,880 --> 00:03:22,880 Speaker 5: Micron lower in the session. Sources are telling us that 65 00:03:22,960 --> 00:03:25,960 Speaker 5: those names, the eyes are not dotted, the t's are 66 00:03:25,960 --> 00:03:30,320 Speaker 5: not crossed. Which areas do they still have to negotiate McKenzie. 67 00:03:32,320 --> 00:03:35,240 Speaker 8: It varies by company. In Intel's case, part of the 68 00:03:35,280 --> 00:03:38,000 Speaker 8: hang up is over what's called a change of contract provision, 69 00:03:38,000 --> 00:03:40,520 Speaker 8: which is a fancy way of saying what happens if 70 00:03:40,560 --> 00:03:44,160 Speaker 8: Intel spins office manufacturing business or is acquired in part 71 00:03:44,280 --> 00:03:46,840 Speaker 8: or in whole. Now, Dolsinger has said we're going to 72 00:03:46,960 --> 00:03:49,400 Speaker 8: keep Intel together. Intel has said it's making good progress 73 00:03:49,440 --> 00:03:51,880 Speaker 8: on the award negotiations. But you can imagine why that's 74 00:03:51,920 --> 00:03:54,080 Speaker 8: a sensitive provision with a company that is going through 75 00:03:54,080 --> 00:03:55,440 Speaker 8: some serious financial troubles. 76 00:03:56,200 --> 00:03:58,360 Speaker 4: The key issue here is, as you said at the top, 77 00:03:58,520 --> 00:04:02,200 Speaker 4: this is bipartisan in nature. So where might we see 78 00:04:02,280 --> 00:04:06,320 Speaker 4: changes made. We have heard in recent days weeks key podcasts, 79 00:04:06,360 --> 00:04:09,600 Speaker 4: Trump really rail against what he sees is well money 80 00:04:09,640 --> 00:04:11,680 Speaker 4: out the door when he thinks Taris would just bring 81 00:04:11,760 --> 00:04:14,200 Speaker 4: TSMC to build in the US, for example. 82 00:04:16,440 --> 00:04:20,200 Speaker 8: The general consensus among industry lobbys and government officials in 83 00:04:20,240 --> 00:04:22,640 Speaker 8: Washington is that the broad contours of this program will 84 00:04:22,640 --> 00:04:25,960 Speaker 8: stay the same. It passes bipartisan support. It was Trump's 85 00:04:25,960 --> 00:04:29,520 Speaker 8: first administration that recruited TSMC to Arizona in the first place. 86 00:04:29,760 --> 00:04:32,520 Speaker 8: But Republicans are already taking aim at what they consider 87 00:04:32,560 --> 00:04:35,919 Speaker 8: it to be social provisions of the Biden administration's implementation, 88 00:04:36,360 --> 00:04:40,080 Speaker 8: things like requirements for childcare facilities, or expectations that companies 89 00:04:40,120 --> 00:04:42,440 Speaker 8: will work with local labor unions or try to limit 90 00:04:42,520 --> 00:04:44,320 Speaker 8: the environmental impact of their facilities. 91 00:04:45,160 --> 00:04:48,800 Speaker 5: Bimberg's Mackenzie Hawkins, thank you for your reporting. Let's get 92 00:04:48,800 --> 00:04:53,159 Speaker 5: the markets perspective, bringing Eric Friedman, chief investment officer a 93 00:04:53,320 --> 00:04:56,599 Speaker 5: US Bank Asset Management. I think we start with semiconductors, right. 94 00:04:57,080 --> 00:04:59,000 Speaker 5: I talked to the beginning of the show about still 95 00:04:59,040 --> 00:05:02,320 Speaker 5: trying to discern the winners and losers in Trump two 96 00:05:02,360 --> 00:05:05,520 Speaker 5: point zero through that lens. How are you viewing chips 97 00:05:05,600 --> 00:05:06,360 Speaker 5: right now, Eric. 98 00:05:07,400 --> 00:05:10,080 Speaker 9: Yeah, we're still favorable on the ship space. I think 99 00:05:10,120 --> 00:05:13,239 Speaker 9: the distinction that we're really trying to make is number 100 00:05:13,240 --> 00:05:16,240 Speaker 9: one in terms of the beneficiarias of AI. That is 101 00:05:16,279 --> 00:05:20,479 Speaker 9: certainly a story that lots of people talk about, because 102 00:05:20,520 --> 00:05:23,719 Speaker 9: there is still some concern in terms of hardware and 103 00:05:23,760 --> 00:05:27,200 Speaker 9: peripheral sales, just you know, with a weakening labor market, 104 00:05:27,240 --> 00:05:30,520 Speaker 9: some softening not just in the US, but across the globe, 105 00:05:30,520 --> 00:05:33,480 Speaker 9: what does the upgrade cycle look like? What will corporate 106 00:05:33,520 --> 00:05:37,599 Speaker 9: capex specific to peripherals and hardware look like. We're seeing 107 00:05:37,640 --> 00:05:40,719 Speaker 9: some stabilization aad but really not necessarily an uplift, So, 108 00:05:41,320 --> 00:05:44,520 Speaker 9: you know, probably more the idea of will we see 109 00:05:45,200 --> 00:05:48,960 Speaker 9: diffusion of AI chips beyond the hyperscalers? Again, hyperscalers have 110 00:05:49,040 --> 00:05:51,360 Speaker 9: a ton of free cash flow, and that's what we've 111 00:05:51,400 --> 00:05:54,719 Speaker 9: seen consistently throughout this earning season, and so the ability 112 00:05:54,760 --> 00:05:58,839 Speaker 9: to almost self fund AI chip demand we think will continue. 113 00:05:58,880 --> 00:06:01,480 Speaker 9: So I think there's all almost a business to business 114 00:06:01,560 --> 00:06:04,040 Speaker 9: versus business to consumer angle. We're probably were in the 115 00:06:04,040 --> 00:06:07,160 Speaker 9: business to business angle for chips. But then more specifically, 116 00:06:07,360 --> 00:06:10,640 Speaker 9: will we see that diffusion out beyond again hyperscalers, Will 117 00:06:11,120 --> 00:06:14,880 Speaker 9: AI chip growth again meet and demand? We still think 118 00:06:14,880 --> 00:06:15,720 Speaker 9: there's a backlog there. 119 00:06:15,720 --> 00:06:17,279 Speaker 10: That's why we're still bullish. 120 00:06:17,680 --> 00:06:21,400 Speaker 5: Eric, how's the US Bank Asset Management team modeling for 121 00:06:21,560 --> 00:06:22,960 Speaker 5: Trump tariff policy? 122 00:06:24,520 --> 00:06:28,000 Speaker 9: Yeah, I think it's important to really discern probably by 123 00:06:28,080 --> 00:06:30,680 Speaker 9: country and by region, and I think that almost a 124 00:06:30,760 --> 00:06:34,720 Speaker 9: knee jerk reaction that we saw heading into election day 125 00:06:34,720 --> 00:06:37,039 Speaker 9: and then the immediacy following the election, is that look, 126 00:06:37,080 --> 00:06:40,400 Speaker 9: there would be this you know, almost broad tear iff 127 00:06:40,440 --> 00:06:43,760 Speaker 9: policies set across not just China, which is a very 128 00:06:43,760 --> 00:06:47,200 Speaker 9: common refrain from both parties heading into the election, but 129 00:06:47,320 --> 00:06:50,000 Speaker 9: also you know Western Europe in particular, and if you 130 00:06:50,000 --> 00:06:53,920 Speaker 9: look at the performance in particular of EFA again developed 131 00:06:53,920 --> 00:06:57,760 Speaker 9: international stocks, you look at what's happened within the currency realm, 132 00:06:57,920 --> 00:07:00,920 Speaker 9: there is still this this view that, look, tariffs are coming. 133 00:07:01,360 --> 00:07:04,200 Speaker 9: I do think that our modeling work suggests that differentiation 134 00:07:04,360 --> 00:07:07,120 Speaker 9: is probably an underappreciated point right now in the marketplace, 135 00:07:07,200 --> 00:07:11,080 Speaker 9: so as we await again not just the specifics on 136 00:07:11,080 --> 00:07:13,560 Speaker 9: what tariffs looks like, but also who's going to be 137 00:07:13,560 --> 00:07:17,040 Speaker 9: in the cabinet that can have a material impact on 138 00:07:17,760 --> 00:07:20,280 Speaker 9: just again maybe the glide path of what tariffs look like. 139 00:07:20,360 --> 00:07:23,440 Speaker 9: Last thing I'd say is this, there's the possibility of 140 00:07:23,520 --> 00:07:27,160 Speaker 9: more of a glide path approach, almost a in initial 141 00:07:27,240 --> 00:07:31,040 Speaker 9: set and then perhaps an expansion depending on success as 142 00:07:31,040 --> 00:07:33,800 Speaker 9: well as depending on how the other side reacts. The 143 00:07:33,840 --> 00:07:37,520 Speaker 9: reaction function of those impacted by tariffs is one that 144 00:07:37,720 --> 00:07:40,480 Speaker 9: we again have to also model in and something we're 145 00:07:40,560 --> 00:07:41,200 Speaker 9: very focused on. 146 00:07:42,040 --> 00:07:45,080 Speaker 4: To that point, has any of your feelings changed on 147 00:07:45,680 --> 00:07:49,400 Speaker 4: big American companies with large exposure to China do get 148 00:07:50,000 --> 00:07:53,640 Speaker 4: more nervous around that or actually does things stay the same? 149 00:07:55,040 --> 00:07:58,040 Speaker 9: Yeah, caroly I think it is a bit more nervous. 150 00:07:58,680 --> 00:08:01,240 Speaker 9: And when I say nervous, the range of outcomes that 151 00:08:01,280 --> 00:08:04,440 Speaker 9: we're modeling has to expand, and I think that if 152 00:08:04,440 --> 00:08:06,920 Speaker 9: you look at, for example, what's happening in the Chinese 153 00:08:06,960 --> 00:08:09,440 Speaker 9: stock market review as completely anomalist, that is more of 154 00:08:09,440 --> 00:08:13,320 Speaker 9: a policy driven China really trying to regain some of 155 00:08:13,320 --> 00:08:16,880 Speaker 9: the spotlight with the challenges they have structurally within their 156 00:08:16,880 --> 00:08:19,520 Speaker 9: economy and most of the issues that we're. 157 00:08:19,320 --> 00:08:22,320 Speaker 7: Seeing within the supply chain. 158 00:08:22,840 --> 00:08:25,440 Speaker 9: That's the part that we think is key, and there 159 00:08:25,480 --> 00:08:27,440 Speaker 9: was a lot of rhetoric and obviously discussion about the 160 00:08:27,440 --> 00:08:31,720 Speaker 9: supply chain and what requirements were going to be really imposed, 161 00:08:31,760 --> 00:08:34,640 Speaker 9: if you will, pre election. Now that we have the 162 00:08:34,679 --> 00:08:38,520 Speaker 9: election results largely behind us, the extent of the supply 163 00:08:38,640 --> 00:08:41,120 Speaker 9: chain is probably our next area of focus. So I 164 00:08:41,160 --> 00:08:43,000 Speaker 9: do think that in terms of our modeling work and 165 00:08:43,000 --> 00:08:46,000 Speaker 9: if we're looking at the range of opportunities and considerations, 166 00:08:46,280 --> 00:08:48,920 Speaker 9: it's widened, but again having more of a bias towards 167 00:08:48,960 --> 00:08:51,760 Speaker 9: more on shoring and the potential of more inflation we 168 00:08:51,800 --> 00:08:53,800 Speaker 9: think is now our base case, probably more so than 169 00:08:53,840 --> 00:08:55,720 Speaker 9: it was two or three weeks ago. 170 00:08:55,880 --> 00:08:58,880 Speaker 4: Talk to that inflation because we've had a raft of 171 00:08:58,920 --> 00:09:01,920 Speaker 4: consumer facing tech companies come out with their earnings and 172 00:09:01,960 --> 00:09:04,640 Speaker 4: they move on the day to day. Not individual names, 173 00:09:04,679 --> 00:09:07,199 Speaker 4: but more broadly tech exposed. 174 00:09:06,840 --> 00:09:07,360 Speaker 6: To the consumer. 175 00:09:07,400 --> 00:09:08,720 Speaker 4: Are they going to have a better time of it 176 00:09:08,840 --> 00:09:11,120 Speaker 4: or a harder time in twenty twenty five if inflationary 177 00:09:11,160 --> 00:09:13,559 Speaker 4: pressures are there, Yeah, I. 178 00:09:13,520 --> 00:09:17,200 Speaker 9: Think that on balance, you know, we're still optimistic about 179 00:09:17,240 --> 00:09:22,600 Speaker 9: the consumer, especially amongst the middle income and upper income 180 00:09:22,600 --> 00:09:25,680 Speaker 9: consumer in the US. We do think there is some 181 00:09:25,920 --> 00:09:29,160 Speaker 9: level of stability in continental Europe. I'm not saying it's 182 00:09:29,160 --> 00:09:34,480 Speaker 9: certainly a gangbuster a consumer electronics demand cycle, but that 183 00:09:34,679 --> 00:09:37,280 Speaker 9: idea of the quote unquote case shape recovery, we think 184 00:09:37,360 --> 00:09:39,680 Speaker 9: is intact one of the things that we've really looked at. 185 00:09:40,160 --> 00:09:41,800 Speaker 9: In addition to again our role as a bank, we 186 00:09:41,840 --> 00:09:43,920 Speaker 9: have a lot of purview into delinquencies, We have a 187 00:09:43,920 --> 00:09:46,920 Speaker 9: lot of understanding what's happening within credit flows, and there 188 00:09:47,040 --> 00:09:50,040 Speaker 9: is a very market difference between middle and upper income 189 00:09:50,080 --> 00:09:53,120 Speaker 9: consumers and lower income consumers. And what I mean by 190 00:09:53,120 --> 00:09:55,280 Speaker 9: that is, if if you look at at just the 191 00:09:55,920 --> 00:09:59,000 Speaker 9: bar that the lower income consumers have had to overcome 192 00:10:00,559 --> 00:10:05,160 Speaker 9: expenses on rents, expenses on credit cards. Those are going up, 193 00:10:05,280 --> 00:10:10,160 Speaker 9: and so that marginal consumer who's maybe lower end, you know, 194 00:10:10,200 --> 00:10:13,360 Speaker 9: consumer electronics demand is probably going to be challenged for 195 00:10:13,440 --> 00:10:16,199 Speaker 9: some time. We still think that middle income and upper 196 00:10:16,240 --> 00:10:19,120 Speaker 9: income consumers will spend, so we think that that that 197 00:10:19,160 --> 00:10:20,760 Speaker 9: refresh cycle will exist. 198 00:10:21,000 --> 00:10:21,560 Speaker 7: On balance. 199 00:10:21,600 --> 00:10:24,720 Speaker 9: It's it's still okay, it's really not, you know, Carolin, 200 00:10:24,760 --> 00:10:26,720 Speaker 9: I'd say gangbusters at this point. 201 00:10:26,559 --> 00:10:29,920 Speaker 4: Right now, I Friedman of US Bank Asset Management really 202 00:10:29,960 --> 00:10:33,840 Speaker 4: appreciate you coming on today. Meanwhile, coming up Saudi Arabia 203 00:10:34,280 --> 00:10:38,040 Speaker 4: betting b on Ai for their potential one hundred billion 204 00:10:38,080 --> 00:10:38,880 Speaker 4: dollar investment. 205 00:10:38,960 --> 00:10:50,960 Speaker 6: That's next. This is a bluebot technology. 206 00:10:54,480 --> 00:10:57,520 Speaker 5: It's time for talking tech and first stop. Sony lifts 207 00:10:57,600 --> 00:11:00,920 Speaker 5: its sales out look. The Japanese tech a saw strong 208 00:11:01,000 --> 00:11:04,480 Speaker 5: music sales and a surprise boost from its PlayStation unit 209 00:11:04,559 --> 00:11:07,400 Speaker 5: due to sales of the video game Black Myth Wu Kong. 210 00:11:07,720 --> 00:11:10,160 Speaker 5: Sony says it now expects a net revenue of eighty 211 00:11:10,200 --> 00:11:13,640 Speaker 5: three point two billion dollars plus. By Doo is set 212 00:11:13,679 --> 00:11:16,800 Speaker 5: to unveil a new pair of AI smart glasses. The 213 00:11:16,920 --> 00:11:20,440 Speaker 5: likes of which rival Metas ray bands. According to sources, 214 00:11:20,640 --> 00:11:23,480 Speaker 5: the Chinese search leader plans to introduce the device, said 215 00:11:23,480 --> 00:11:27,079 Speaker 5: it's Bydo World event in Shanghai next week. Sales of 216 00:11:27,120 --> 00:11:29,320 Speaker 5: the glasses could start as early as twenty twenty five 217 00:11:29,360 --> 00:11:32,640 Speaker 5: and would likely cost less than Metas two hundred and 218 00:11:32,679 --> 00:11:36,000 Speaker 5: ninety nine dollars price point, and Nvidia has named NASA 219 00:11:36,080 --> 00:11:39,280 Speaker 5: veteran elean Na Choa as a director. The move bolsters 220 00:11:39,280 --> 00:11:43,000 Speaker 5: and videos board to thirty members after the AI rally 221 00:11:43,000 --> 00:11:46,160 Speaker 5: turned the company into a Silicon Valley titan. The Choa 222 00:11:46,360 --> 00:11:50,000 Speaker 5: previously ran NASAs Johnson Space Center in Houston and was 223 00:11:50,000 --> 00:11:54,560 Speaker 5: the first Latina astronaut in Spacekroen ed, let's. 224 00:11:54,440 --> 00:11:55,760 Speaker 6: Talk to Saudi Arabia right now. 225 00:11:55,800 --> 00:11:59,520 Speaker 4: It is set to make a big push into artificial intelligence, 226 00:11:59,520 --> 00:12:02,560 Speaker 4: investing up to one hundred billion dollars in new projects. 227 00:12:02,679 --> 00:12:06,040 Speaker 4: We're talking data centers, startups, other AI focused infrastructure. 228 00:12:06,160 --> 00:12:08,160 Speaker 6: It's all according to sources from More. 229 00:12:08,240 --> 00:12:11,320 Speaker 4: We welcome Bloomberg's Tom Jarles on now to talk about 230 00:12:11,440 --> 00:12:15,480 Speaker 4: this was initially potentially an agreement. We've heard Alphabet Google 231 00:12:15,920 --> 00:12:19,720 Speaker 4: helping fund AI focus in Saudi Arabia, but this is 232 00:12:19,880 --> 00:12:21,480 Speaker 4: much much bigger in scale. Now. 233 00:12:22,480 --> 00:12:26,440 Speaker 11: There's a lot of ambition behind this project, Caroline. What 234 00:12:26,480 --> 00:12:29,000 Speaker 11: the Saudis are trying to do is make sure that 235 00:12:29,080 --> 00:12:32,040 Speaker 11: they have a seat at the table part of the 236 00:12:32,080 --> 00:12:33,120 Speaker 11: AI revolution. 237 00:12:33,640 --> 00:12:36,120 Speaker 12: What can they do? They have a lot of. 238 00:12:36,120 --> 00:12:39,120 Speaker 11: Money, they're not and they basically there's a lot of 239 00:12:39,120 --> 00:12:41,920 Speaker 11: money and they want to invest in infrastructure. Something that 240 00:12:41,960 --> 00:12:45,000 Speaker 11: we've been writing about and talking talking to you about 241 00:12:45,000 --> 00:12:47,880 Speaker 11: for a long time is the need for all of 242 00:12:47,920 --> 00:12:51,600 Speaker 11: the data centers, all of that computing power that's necessary 243 00:12:51,640 --> 00:12:56,960 Speaker 11: to drive generitive artificial intelligence. The Saudis have plenty of 244 00:12:57,040 --> 00:13:00,920 Speaker 11: resources to help invest in that. They are putting a 245 00:13:00,960 --> 00:13:04,280 Speaker 11: lot of money and time and energy into this effort 246 00:13:04,840 --> 00:13:08,800 Speaker 11: that they hope will essentially put Saudi Arabia on the 247 00:13:08,840 --> 00:13:12,720 Speaker 11: map as a major force behind generative. 248 00:13:12,280 --> 00:13:15,840 Speaker 7: AI code name Project Transcendence. 249 00:13:15,880 --> 00:13:18,160 Speaker 5: According to our reporting, I think what we know from 250 00:13:18,160 --> 00:13:20,560 Speaker 5: our reporting, tom Right, is that it's almost a quid 251 00:13:20,600 --> 00:13:25,000 Speaker 5: pro quo that Saudi's ready to invest hand over money 252 00:13:25,040 --> 00:13:28,040 Speaker 5: to startups, big name players, but in return they have 253 00:13:28,120 --> 00:13:29,959 Speaker 5: to have a presence in country. 254 00:13:31,280 --> 00:13:34,120 Speaker 11: That's right. One of the conditions is they want to 255 00:13:34,160 --> 00:13:39,120 Speaker 11: see those operations have a strong to hold right there 256 00:13:39,120 --> 00:13:42,360 Speaker 11: in the Kingdom. Something else that you need to bear 257 00:13:42,360 --> 00:13:44,439 Speaker 11: in mind when you look and when you think about 258 00:13:44,440 --> 00:13:46,679 Speaker 11: the role that the Middle East is going to play 259 00:13:47,320 --> 00:13:51,200 Speaker 11: investing in global startups and investing in this Again, I 260 00:13:51,280 --> 00:13:54,160 Speaker 11: keep referring to it as a revolution because it is 261 00:13:54,200 --> 00:13:56,640 Speaker 11: transforming the way we do business, the way we live 262 00:13:56,640 --> 00:13:57,120 Speaker 11: our lives. 263 00:13:57,960 --> 00:14:00,719 Speaker 12: Something that's really important, something that we've seen come up 264 00:14:00,720 --> 00:14:01,600 Speaker 12: time and time. 265 00:14:01,400 --> 00:14:05,280 Speaker 11: Again, is the West, led by the United States, wants 266 00:14:05,320 --> 00:14:07,760 Speaker 11: to ensure that the companies that have a really strong 267 00:14:07,920 --> 00:14:12,000 Speaker 11: stake in AI, in these startups, in these global startups 268 00:14:12,000 --> 00:14:15,480 Speaker 11: and these global businesses, is that they be allied with 269 00:14:15,679 --> 00:14:16,160 Speaker 11: the West. 270 00:14:16,200 --> 00:14:18,400 Speaker 12: Something that we've seen before is that when. 271 00:14:19,920 --> 00:14:22,720 Speaker 11: When parts of the country, parts of the world excuse me, 272 00:14:22,760 --> 00:14:26,760 Speaker 11: become too closely allied with state China, that starts to 273 00:14:26,800 --> 00:14:28,800 Speaker 11: make people nervous. And so one of the things that 274 00:14:28,840 --> 00:14:32,720 Speaker 11: you're going to see is if the IF US companies 275 00:14:32,720 --> 00:14:34,800 Speaker 11: are going to take part in this, they're going to 276 00:14:34,880 --> 00:14:38,560 Speaker 11: want to see the Middle East allying itself with the 277 00:14:38,600 --> 00:14:41,800 Speaker 11: West and away from China. 278 00:14:41,840 --> 00:14:44,280 Speaker 6: Interesting, So that's sort of the global context. 279 00:14:44,360 --> 00:14:46,680 Speaker 4: When you get into the nitty gritty, it's going to 280 00:14:46,680 --> 00:14:49,880 Speaker 4: be the PIF that's their sort of sovereign wealth fund 281 00:14:50,240 --> 00:14:54,680 Speaker 4: aligning themselves and co investing with big international companies. 282 00:14:55,000 --> 00:14:57,520 Speaker 6: It's going to have similar feel to it, right than 283 00:14:57,680 --> 00:14:59,560 Speaker 6: al At. Can you just spell out how the funding 284 00:14:59,640 --> 00:15:00,120 Speaker 6: might look. 285 00:15:01,480 --> 00:15:04,840 Speaker 11: Well, well, we're still getting our arms around that. We 286 00:15:04,920 --> 00:15:07,480 Speaker 11: know that they want to invest in startups, they want 287 00:15:07,520 --> 00:15:10,760 Speaker 11: to invest in the infrastructure. These data centers cost a 288 00:15:10,760 --> 00:15:13,600 Speaker 11: lot of money. All the servers, all the chips, all 289 00:15:13,640 --> 00:15:17,160 Speaker 11: this computing power that's needed to generate to for generative 290 00:15:17,320 --> 00:15:21,080 Speaker 11: artificial intelligence, the chips themselves, and the equipment needed to 291 00:15:21,120 --> 00:15:23,920 Speaker 11: build the chips, and you see the potential for Saudi 292 00:15:23,920 --> 00:15:27,840 Speaker 11: Arabia to become this major world center of global of 293 00:15:27,920 --> 00:15:31,280 Speaker 11: the global infrastructure needed around artificial intelligence. 294 00:15:31,400 --> 00:15:33,880 Speaker 12: We talk a lot about the role that Taiwan plays. 295 00:15:34,040 --> 00:15:36,200 Speaker 11: We talk a lot about the US and the Chips 296 00:15:36,200 --> 00:15:40,320 Speaker 11: Act and its desire to bring chip making capabilities in 297 00:15:40,440 --> 00:15:43,720 Speaker 11: the US. This is Saudi Arabia saying we want to 298 00:15:43,760 --> 00:15:46,120 Speaker 11: have a stake in this as well. We're going to 299 00:15:46,160 --> 00:15:50,320 Speaker 11: incentivize you to come to build and invest right here 300 00:15:50,360 --> 00:15:51,320 Speaker 11: in our backyard. 301 00:15:52,360 --> 00:16:03,760 Speaker 5: Blomberg Technology Senior Executive Editor, Tom Giles, thank you, Happy Friday, boss, 302 00:16:05,880 --> 00:16:08,440 Speaker 5: right shares of draftings Honestly bouncing all over the place, 303 00:16:08,480 --> 00:16:12,320 Speaker 5: but currently up almost five percent after reporting third quarter results. 304 00:16:13,080 --> 00:16:15,080 Speaker 7: Look at that stot Go five percent game. 305 00:16:15,120 --> 00:16:17,840 Speaker 5: The Sports bending company cut his full year revenue forecast 306 00:16:18,120 --> 00:16:22,000 Speaker 5: below analyst estimates reported are wider and then expected loss 307 00:16:22,040 --> 00:16:25,080 Speaker 5: per share. Let's gets Drafting CEO Jason Robbins, There's this 308 00:16:25,200 --> 00:16:28,440 Speaker 5: idea that the streets fixated on that there were customer 309 00:16:28,520 --> 00:16:32,960 Speaker 5: friendly outcomes, particularly in the realm of NFL. Is that 310 00:16:33,160 --> 00:16:35,800 Speaker 5: true to your mind? And what's a customer friendly outcome? 311 00:16:37,480 --> 00:16:37,800 Speaker 7: Well? 312 00:16:38,000 --> 00:16:41,560 Speaker 13: Q three actually we said that we had neutral outcomes, 313 00:16:41,560 --> 00:16:44,160 Speaker 13: so you know, we had exactly kind of as we expected, 314 00:16:44,200 --> 00:16:47,000 Speaker 13: and we ended up having a beat in Q three, 315 00:16:47,000 --> 00:16:51,600 Speaker 13: which is great. Q four aside from these outcomes, would 316 00:16:51,600 --> 00:16:53,880 Speaker 13: have been on track for the same So you know, basically, 317 00:16:53,880 --> 00:16:57,000 Speaker 13: what it means is that the favorites one a lot 318 00:16:57,080 --> 00:16:59,600 Speaker 13: and the big name players scored touchdowns and had a 319 00:16:59,600 --> 00:17:02,600 Speaker 13: lot of And sometimes that happens in sports. You know, 320 00:17:02,720 --> 00:17:05,600 Speaker 13: the book sometimes wins, sometimes the customers win. And it's 321 00:17:05,600 --> 00:17:07,800 Speaker 13: hard to know, right because we're only you know, halfway 322 00:17:07,840 --> 00:17:09,439 Speaker 13: through the quarter yet, how it's all going to end. 323 00:17:09,480 --> 00:17:11,359 Speaker 13: It could easily swing the other way, but at this 324 00:17:11,520 --> 00:17:14,040 Speaker 13: point for the quarter, at least the five weeks that 325 00:17:14,040 --> 00:17:16,919 Speaker 13: we're into it, the customers are winning, and you know, 326 00:17:16,960 --> 00:17:18,120 Speaker 13: over the long term, that's great. 327 00:17:18,160 --> 00:17:19,400 Speaker 7: We need our customers to win. 328 00:17:19,440 --> 00:17:21,879 Speaker 13: Sometimes they want to win sometimes that's part of experiencing 329 00:17:21,920 --> 00:17:25,400 Speaker 13: the product. So we're really excited though that the fundamentals 330 00:17:25,440 --> 00:17:27,920 Speaker 13: are super strong. We saw three hundred BIPs year of 331 00:17:28,000 --> 00:17:31,560 Speaker 13: year improvement in both promotionally and gross margin percentage. Cacs 332 00:17:31,560 --> 00:17:34,640 Speaker 13: were down twenty percent in the quarter. Lots of really 333 00:17:34,680 --> 00:17:35,520 Speaker 13: good things going on. 334 00:17:36,960 --> 00:17:39,960 Speaker 5: It's well, there's lots of things, full stop going on. 335 00:17:40,760 --> 00:17:42,320 Speaker 7: Let's get technology in a little bit. 336 00:17:42,359 --> 00:17:44,479 Speaker 5: But in a week where you have a US election 337 00:17:44,760 --> 00:17:46,639 Speaker 5: and it's getting towards the end of the year, the 338 00:17:46,680 --> 00:17:50,600 Speaker 5: holidays are fast approaching, how does sports betting stand out? 339 00:17:50,680 --> 00:17:54,080 Speaker 5: Like what is the consumer attitude towards placing a bet 340 00:17:54,320 --> 00:17:55,440 Speaker 5: in a week like this one? 341 00:17:56,960 --> 00:17:59,800 Speaker 13: Well, obviously a lot of distraction with the election going on, 342 00:18:00,040 --> 00:18:03,120 Speaker 13: but you know, as you might imagine, people were even 343 00:18:03,160 --> 00:18:05,720 Speaker 13: talking about speculating on one side or the other the 344 00:18:05,760 --> 00:18:08,640 Speaker 13: election markets, and that was available in certain places too. 345 00:18:08,760 --> 00:18:11,080 Speaker 13: So you know, I think it's very much part of 346 00:18:11,080 --> 00:18:13,479 Speaker 13: the culture now that people want to be, you know, 347 00:18:13,640 --> 00:18:17,960 Speaker 13: a participant by having an idea, a prediction, a viewpoint 348 00:18:18,000 --> 00:18:20,000 Speaker 13: on what they think is going to happen. And I 349 00:18:20,040 --> 00:18:22,159 Speaker 13: think betting is really just you know, part of that 350 00:18:22,280 --> 00:18:23,040 Speaker 13: overall trend. 351 00:18:23,280 --> 00:18:25,880 Speaker 4: Jason, I want to jump in on that polymarket call 352 00:18:26,320 --> 00:18:27,359 Speaker 4: a lot of people's attention. 353 00:18:27,880 --> 00:18:30,240 Speaker 6: Would you go there, would you expand in pass sports? 354 00:18:31,680 --> 00:18:33,480 Speaker 13: Well, we would only do it if it were in 355 00:18:33,520 --> 00:18:37,879 Speaker 13: a legal and regulated fashion. So you know, these types 356 00:18:37,920 --> 00:18:41,600 Speaker 13: of markets on elections are regulated at the federal level. 357 00:18:41,600 --> 00:18:44,320 Speaker 13: It's different than the way betting is regulated. You know, 358 00:18:44,359 --> 00:18:46,760 Speaker 13: it's something that maybe we would you know, consider looking 359 00:18:46,840 --> 00:18:49,720 Speaker 13: into before the next election. But I do think that 360 00:18:50,000 --> 00:18:52,120 Speaker 13: it's only something that we would do in a legal, 361 00:18:52,200 --> 00:18:55,199 Speaker 13: regulated environment, which is what differentiates us from some of 362 00:18:55,200 --> 00:18:56,919 Speaker 13: those that are offering and now some are offering it 363 00:18:57,000 --> 00:18:59,280 Speaker 13: legally now too, there is a legal framework for it 364 00:18:59,320 --> 00:19:00,879 Speaker 13: as well, but not everybody is. 365 00:19:01,080 --> 00:19:04,359 Speaker 4: Let's just talk about therefore that passage of legalization. Is 366 00:19:04,359 --> 00:19:07,080 Speaker 4: that going to be easier under the next administration? I 367 00:19:07,080 --> 00:19:09,800 Speaker 4: mean also just from the point of sports betting too, 368 00:19:09,840 --> 00:19:12,120 Speaker 4: we see Missouri Common Line for example. 369 00:19:13,160 --> 00:19:16,560 Speaker 13: Well, definitely for us, it's really you know, the states 370 00:19:16,600 --> 00:19:19,000 Speaker 13: that are legalizing and so a lot of what we 371 00:19:19,080 --> 00:19:22,440 Speaker 13: were watching were the various outcomes and state houses and governors' 372 00:19:22,520 --> 00:19:26,000 Speaker 13: races around the nation. Obviously, you know there is some 373 00:19:26,160 --> 00:19:30,000 Speaker 13: impact from you know, federal government impacts every industry in 374 00:19:30,040 --> 00:19:33,360 Speaker 13: some way or another. But you know, taxes other ways, 375 00:19:33,400 --> 00:19:36,320 Speaker 13: corporate taxes meaning but you know, in terms of legalization, 376 00:19:37,280 --> 00:19:39,440 Speaker 13: our action is really at the state level. So as 377 00:19:39,440 --> 00:19:43,120 Speaker 13: you knowed, Missouri's big win passed about initiative to legalize 378 00:19:43,160 --> 00:19:46,320 Speaker 13: sports betting, and very excited about that. Missouri is the 379 00:19:46,359 --> 00:19:49,920 Speaker 13: eighteenth largest state and the huge sports state. Really great 380 00:19:49,960 --> 00:19:52,840 Speaker 13: sports fans in Missouri, so excited about that one. 381 00:19:52,880 --> 00:19:53,800 Speaker 7: Hopefully that'll get. 382 00:19:53,760 --> 00:19:56,280 Speaker 13: Up and running soon, and you know, hopefully we'll see 383 00:19:56,280 --> 00:19:58,720 Speaker 13: even more action when the legislators come back in session. 384 00:19:58,760 --> 00:20:01,840 Speaker 5: In Kew on Jason, we focus a lot on this 385 00:20:01,920 --> 00:20:06,399 Speaker 5: program about how sport is access the technology right, a 386 00:20:06,480 --> 00:20:11,800 Speaker 5: transition from linear television to OTT and I'm fascinated by 387 00:20:12,880 --> 00:20:16,879 Speaker 5: how the betting markets either benefit or don't benefit from that. 388 00:20:16,960 --> 00:20:17,160 Speaker 7: Right. 389 00:20:17,240 --> 00:20:20,960 Speaker 5: The consumer has so many options about how to watch 390 00:20:20,960 --> 00:20:24,920 Speaker 5: sport and pay for it. You know, it's astonishing. Actually 391 00:20:25,000 --> 00:20:27,320 Speaker 5: what flies out of my bank account each month? Is 392 00:20:27,359 --> 00:20:30,800 Speaker 5: that a tailwind or a headwind to you when you're 393 00:20:30,840 --> 00:20:32,800 Speaker 5: thinking about bets being placed in parallel. 394 00:20:34,320 --> 00:20:37,360 Speaker 13: Well, I think it's actually a tail in that it's 395 00:20:37,480 --> 00:20:40,760 Speaker 13: part of the overall trend we're seeing, which is sports 396 00:20:40,800 --> 00:20:43,720 Speaker 13: and interest in sports continues to grow, and betting is 397 00:20:43,720 --> 00:20:46,880 Speaker 13: a part of that. They're very intertwined, so I think 398 00:20:46,920 --> 00:20:49,320 Speaker 13: they feed off each other as more and more, you know, 399 00:20:49,400 --> 00:20:52,119 Speaker 13: people can see more and more sports from around the world, 400 00:20:52,200 --> 00:20:54,480 Speaker 13: not just their favorite sports or their favorite teams, but 401 00:20:54,520 --> 00:20:56,719 Speaker 13: they can watch any team or they can watch any sport, 402 00:20:57,080 --> 00:20:59,359 Speaker 13: and that access is there that's going to be a 403 00:20:59,400 --> 00:21:01,440 Speaker 13: benefit to our business. But it's really part of the 404 00:21:01,520 --> 00:21:04,720 Speaker 13: same overall mega trend, which is, you know, information is 405 00:21:04,760 --> 00:21:07,280 Speaker 13: easier to come by for the consumer, and the consumer 406 00:21:07,320 --> 00:21:09,480 Speaker 13: wants to be a more active participant because they have 407 00:21:09,600 --> 00:21:12,159 Speaker 13: more information and have a viewpoint on things. And I 408 00:21:12,160 --> 00:21:14,800 Speaker 13: think that's why you're seeing this mega trend around betting 409 00:21:14,880 --> 00:21:17,800 Speaker 13: that you know, continues to grow the overall industry in 410 00:21:17,840 --> 00:21:19,879 Speaker 13: the US and really internationally as well. 411 00:21:20,160 --> 00:21:22,760 Speaker 4: Mega trend that you're going to continue to enhance products into. 412 00:21:22,880 --> 00:21:26,200 Speaker 4: Jason Robbins, we appreciate your time DraftKings CEO on the 413 00:21:26,200 --> 00:21:28,359 Speaker 4: back of the earnings, and we'll have more from Draftkins 414 00:21:28,400 --> 00:21:31,600 Speaker 4: next week. Tune into Bloomberg Chief Future Officer conversation with 415 00:21:31,640 --> 00:21:36,439 Speaker 4: a CFO coming up. Meanwhile, we've got plenty more to 416 00:21:36,480 --> 00:21:39,040 Speaker 4: be dissecting when it comes to tech earning season as 417 00:21:39,080 --> 00:21:41,440 Speaker 4: it continues, will bring you the latest out of pinterest 418 00:21:41,440 --> 00:21:44,280 Speaker 4: out of Airbnb so much more. At the moment, pinterest 419 00:21:44,760 --> 00:21:48,320 Speaker 4: ed off by more than fifteen percent. This is as look, 420 00:21:48,680 --> 00:21:52,000 Speaker 4: the numbers look good from a revenue perspective for this quarter, 421 00:21:52,080 --> 00:21:54,879 Speaker 4: but really it's the forecast and they increase in spending 422 00:21:54,880 --> 00:22:05,080 Speaker 4: on AI that's got people's attention. I'll come back to 423 00:22:05,080 --> 00:22:07,920 Speaker 4: Bloomberg Technology. I'm Caroline Hide in New York and I. 424 00:22:07,880 --> 00:22:09,240 Speaker 7: Med Ludlow in San Francisco. 425 00:22:09,400 --> 00:22:11,720 Speaker 4: Pic check on these market said, because what a week 426 00:22:11,800 --> 00:22:13,720 Speaker 4: when it comes to the macro policy, when it comes 427 00:22:13,760 --> 00:22:15,399 Speaker 4: to Fed rate cuts, when it comes to earnings, when 428 00:22:15,440 --> 00:22:19,399 Speaker 4: it comes to the election outcome. We are completely unchanged 429 00:22:19,440 --> 00:22:21,080 Speaker 4: on the last one hundred to day, but it's not 430 00:22:21,160 --> 00:22:21,840 Speaker 4: unchanged on the week. 431 00:22:21,840 --> 00:22:22,840 Speaker 6: We're other more than five percent. 432 00:22:22,880 --> 00:22:25,440 Speaker 4: Best week since September the thirteenth through really seen big 433 00:22:25,480 --> 00:22:29,320 Speaker 4: tech on top after those particularly electoral results. Looking at 434 00:22:29,320 --> 00:22:33,040 Speaker 4: Trump media back higher today, it sunk significantly more than 435 00:22:33,040 --> 00:22:36,199 Speaker 4: twenty percent yesterday. Maybe rumors swirling around the market that 436 00:22:36,520 --> 00:22:38,679 Speaker 4: the President elect Trump could well sell off some of 437 00:22:38,720 --> 00:22:41,000 Speaker 4: his holding in DJT. Of course that's the owner of 438 00:22:41,040 --> 00:22:43,080 Speaker 4: the parent company of his media outlook. 439 00:22:43,160 --> 00:22:44,320 Speaker 6: But actually he says no. 440 00:22:44,400 --> 00:22:46,400 Speaker 4: He folks back on that particular one, saying he's holding 441 00:22:46,400 --> 00:22:48,240 Speaker 4: We're up nine and a half percent on the day, 442 00:22:48,440 --> 00:22:52,720 Speaker 4: but really has been a tell on his electoral chances 443 00:22:52,720 --> 00:22:54,879 Speaker 4: and then success. I'm looking at Pinterest, though off by 444 00:22:54,880 --> 00:22:56,639 Speaker 4: fifteen percent. We're going to dig into these numbers in 445 00:22:56,680 --> 00:22:59,000 Speaker 4: a moment. Ed this is a raft of earnings, and 446 00:22:59,040 --> 00:23:01,879 Speaker 4: we're seeing Pinterest at look double digit revenue growth. We're 447 00:23:01,880 --> 00:23:04,000 Speaker 4: seeing still living up to expectations when it comes to 448 00:23:04,080 --> 00:23:06,400 Speaker 4: forty percent growth in adjusted earnings per share, and they 449 00:23:06,560 --> 00:23:10,440 Speaker 4: build on their overall user base, but the forecast. 450 00:23:10,000 --> 00:23:10,840 Speaker 6: Looks a little bit weak. 451 00:23:10,840 --> 00:23:13,000 Speaker 4: We're worried about advertising trends when it comes to food 452 00:23:13,000 --> 00:23:15,879 Speaker 4: and beverage in particular, and a spending on AI that 453 00:23:15,960 --> 00:23:18,560 Speaker 4: might top half a billion dollars in the fourth quarter, 454 00:23:18,640 --> 00:23:21,000 Speaker 4: and we're seeing the spending also being a warring for Airbnb. 455 00:23:21,280 --> 00:23:23,479 Speaker 4: They're investing in product, but that means margins are going 456 00:23:23,520 --> 00:23:25,879 Speaker 4: to be crimped. It to manage though to show pretty 457 00:23:25,920 --> 00:23:28,080 Speaker 4: good numbers when it came to their fiscalur quarter and 458 00:23:28,160 --> 00:23:31,560 Speaker 4: revenue increasing. Not so for paramount revenue. On the downside, 459 00:23:31,640 --> 00:23:34,400 Speaker 4: for Paramount down by about five percent year over year, 460 00:23:34,400 --> 00:23:35,920 Speaker 4: we're off by four and a half percent. Of course, 461 00:23:35,960 --> 00:23:39,280 Speaker 4: a company in transition. We understand that the deal with 462 00:23:39,600 --> 00:23:42,520 Speaker 4: Ellison will be tied up by the first half, maybe 463 00:23:42,560 --> 00:23:44,480 Speaker 4: at least by the second half of twenty twenty five. 464 00:23:45,119 --> 00:23:48,359 Speaker 4: Good TV results relatively speaking, good streaming, but film was 465 00:23:48,400 --> 00:23:49,160 Speaker 4: a weakness. 466 00:23:49,240 --> 00:23:49,920 Speaker 6: Let's time into it. 467 00:23:50,680 --> 00:23:52,760 Speaker 5: Yeah, let's get some team coverage and bring in bloombergs, 468 00:23:52,800 --> 00:23:55,520 Speaker 5: Ryan Blaceelica and Ryan. If you go under your bio 469 00:23:55,520 --> 00:23:59,440 Speaker 5: on the Bloomberg terminal, literally every single technology company there 470 00:23:59,520 --> 00:24:02,800 Speaker 5: is in Tickery listed. I don't envy you, But in 471 00:24:02,840 --> 00:24:07,040 Speaker 5: this week, of all weeks, many names reported carry has 472 00:24:07,080 --> 00:24:09,719 Speaker 5: been over some day. Is there a common theme between 473 00:24:09,760 --> 00:24:12,000 Speaker 5: the technology sets to names that posted results. 474 00:24:13,680 --> 00:24:15,879 Speaker 14: Hey, good morning, thanks for having me. You know, I 475 00:24:15,880 --> 00:24:17,920 Speaker 14: would say that there's really been sort of a mixed bag. 476 00:24:17,960 --> 00:24:20,760 Speaker 14: We've seen some companies come out with some very strong forecasts, 477 00:24:20,760 --> 00:24:23,439 Speaker 14: some very strong growth, and we've seen some you know, 478 00:24:23,600 --> 00:24:26,200 Speaker 14: real double digit gains and the waker results. But there's 479 00:24:26,200 --> 00:24:28,399 Speaker 14: also been a number of companies where, you know, and 480 00:24:28,440 --> 00:24:30,479 Speaker 14: you can point to any number of factors behind it. 481 00:24:30,520 --> 00:24:32,320 Speaker 14: Maybe the outlook was a little bit weak. Maybe the 482 00:24:32,359 --> 00:24:35,199 Speaker 14: stock just had rallied so much going into the report 483 00:24:35,280 --> 00:24:37,000 Speaker 14: that it just like had to give some of that back. 484 00:24:37,000 --> 00:24:38,239 Speaker 7: There's really been a mixed bag here. 485 00:24:38,280 --> 00:24:40,760 Speaker 14: I'd say on balance, things have been you know, generally 486 00:24:40,800 --> 00:24:43,080 Speaker 14: pretty positive. But it's certainly easy to you know, point 487 00:24:43,080 --> 00:24:45,520 Speaker 14: to some stocks at you know, for whatever reason, just 488 00:24:45,520 --> 00:24:48,040 Speaker 14: seems like they weren't able to continue with some of 489 00:24:48,040 --> 00:24:49,040 Speaker 14: their recent advances. 490 00:24:49,240 --> 00:24:52,240 Speaker 4: Can we just go in more on Pinterest because this 491 00:24:52,359 --> 00:24:53,760 Speaker 4: is a big set off and in fact it is 492 00:24:53,880 --> 00:24:57,960 Speaker 4: underperformed the entire year. Yes, it rallied last year, but 493 00:24:58,680 --> 00:25:02,400 Speaker 4: why when it's actual PE ratios forward looking PEE ratios 494 00:25:02,440 --> 00:25:04,639 Speaker 4: are much cheaper than rivals like Meta. 495 00:25:05,160 --> 00:25:06,400 Speaker 6: What is there a concern here? 496 00:25:07,160 --> 00:25:09,520 Speaker 14: Right? So you mentioned the week forecast. That's really sort 497 00:25:09,560 --> 00:25:11,720 Speaker 14: of the key issue here. You know, there was a 498 00:25:11,760 --> 00:25:14,439 Speaker 14: lot of optimism building about this company a couple of 499 00:25:14,480 --> 00:25:17,760 Speaker 14: months ago, some analysts commentary, some upgrades, some new analysts 500 00:25:17,800 --> 00:25:19,840 Speaker 14: coming in to say, you know, they're pretty positive on 501 00:25:19,880 --> 00:25:23,080 Speaker 14: the company's growth potential. From here, this forecast does kind 502 00:25:23,080 --> 00:25:25,280 Speaker 14: of you know, throw some cold water on that thesis. 503 00:25:25,320 --> 00:25:26,800 Speaker 14: So we are seeing it pull back. This is one 504 00:25:26,800 --> 00:25:28,680 Speaker 14: that's really been sort of struggling. It's hard for these 505 00:25:29,000 --> 00:25:31,600 Speaker 14: smaller social media companies to compete with the metas of 506 00:25:31,600 --> 00:25:35,280 Speaker 14: the world, to compete with the other major digital advertising companies, 507 00:25:35,320 --> 00:25:37,000 Speaker 14: and this is just sort of another example of that. 508 00:25:38,480 --> 00:25:38,760 Speaker 7: Ryan. 509 00:25:39,520 --> 00:25:45,240 Speaker 5: The big one November twentieth market clothes in VideA is that. 510 00:25:45,240 --> 00:25:48,680 Speaker 7: Everything it certainly feels that way. 511 00:25:48,680 --> 00:25:50,960 Speaker 14: I mean, so far this earning season, we've gotten some 512 00:25:51,000 --> 00:25:54,160 Speaker 14: pretty positive data points that would seem to augur well 513 00:25:54,200 --> 00:25:54,840 Speaker 14: for Nvidia. 514 00:25:55,000 --> 00:25:56,840 Speaker 7: Notably all the big cappex. 515 00:25:56,400 --> 00:25:59,679 Speaker 14: Spending plans from your megacaps, all that points to you know, 516 00:25:59,760 --> 00:26:03,320 Speaker 14: on going demand for AI chips, ongoing demand for you know, 517 00:26:03,400 --> 00:26:07,040 Speaker 14: everything surrounding artificial intelligence. That's pretty positive, you know, for 518 00:26:07,400 --> 00:26:09,919 Speaker 14: Nvidia's growth outlook from here. Of course, this is you know, 519 00:26:09,960 --> 00:26:12,119 Speaker 14: one of the big gainers of the year. There's a 520 00:26:12,119 --> 00:26:14,320 Speaker 14: lot of concerns about, you know, how much more can 521 00:26:14,359 --> 00:26:16,840 Speaker 14: this company keep rising after it's done so well so 522 00:26:16,880 --> 00:26:19,560 Speaker 14: far in twenty twenty four, especially following you know, last 523 00:26:19,640 --> 00:26:22,040 Speaker 14: year's big advance. So I think there's a lot of 524 00:26:22,359 --> 00:26:24,800 Speaker 14: you know, there's reason for optimism here. There's certainly a 525 00:26:24,960 --> 00:26:28,600 Speaker 14: pretty strong sign so that the company's demand drivers are intact. 526 00:26:29,040 --> 00:26:30,639 Speaker 14: But you know, is that going to be enough given 527 00:26:30,960 --> 00:26:32,679 Speaker 14: how much it's moved up, given some of these you know, 528 00:26:32,720 --> 00:26:34,880 Speaker 14: sort of mixed signals from other companies. You know, that's 529 00:26:34,920 --> 00:26:37,640 Speaker 14: that's really the uh, you know, the three trillion dollar question. 530 00:26:38,160 --> 00:26:40,720 Speaker 4: How much it's moved up is almost two hundred percent. 531 00:26:40,960 --> 00:26:45,160 Speaker 4: Yes today, Randalstelica, we thank you so much. Let's get 532 00:26:45,280 --> 00:26:48,240 Speaker 4: more markets perspective for you now, bring in Fiona Sincoto, 533 00:26:48,280 --> 00:26:50,840 Speaker 4: who's senior analyst for City Index Financial Markets. 534 00:26:50,880 --> 00:26:52,560 Speaker 6: Boy, what a week. 535 00:26:52,800 --> 00:26:55,399 Speaker 4: Let's just focus in on, like really the people that 536 00:26:55,440 --> 00:26:58,919 Speaker 4: pick up the phone to post Wednesday and throughout the week. 537 00:26:59,160 --> 00:27:01,840 Speaker 4: Is it one of optimism around big tech and its 538 00:27:01,920 --> 00:27:05,360 Speaker 4: continuation of massive market cap increases. 539 00:27:06,880 --> 00:27:09,240 Speaker 2: Yes, I mean the bottom line is yes, you know, 540 00:27:09,480 --> 00:27:12,720 Speaker 2: and I think that optimism was reflected in what we 541 00:27:12,800 --> 00:27:15,880 Speaker 2: saw happen in the stock market and what we've seen 542 00:27:15,920 --> 00:27:20,760 Speaker 2: happen in the stock market since Trump was declared victory 543 00:27:20,920 --> 00:27:24,520 Speaker 2: of Trump one. So yes, you know, it seems big 544 00:27:24,560 --> 00:27:26,520 Speaker 2: tech seems to be a big favorite. 545 00:27:26,560 --> 00:27:29,320 Speaker 10: Once again. We're just sort of coming into the elections 546 00:27:29,359 --> 00:27:30,040 Speaker 10: and before. 547 00:27:29,800 --> 00:27:31,960 Speaker 2: The elections, there was this sense that sort of big 548 00:27:32,000 --> 00:27:33,640 Speaker 2: tech was a little bit sort of. 549 00:27:33,560 --> 00:27:35,360 Speaker 10: You know, out of favor. 550 00:27:35,720 --> 00:27:38,919 Speaker 2: And we had seen the Nasdaq under performing, the S 551 00:27:38,960 --> 00:27:42,240 Speaker 2: and P five hundred and the Dow Jones, which we're 552 00:27:42,280 --> 00:27:43,480 Speaker 2: trading at record highs. 553 00:27:43,480 --> 00:27:45,560 Speaker 10: But we've seen that really turn around. 554 00:27:45,680 --> 00:27:49,120 Speaker 2: You know, Nasdaq's now trading at record highs as well. 555 00:27:49,160 --> 00:27:51,000 Speaker 10: We've seen a phenomenal. 556 00:27:50,480 --> 00:27:52,639 Speaker 2: Rally in tech dog and I think there is a 557 00:27:52,720 --> 00:27:56,400 Speaker 2: lot of optimism that this can continue. I mean, we've 558 00:27:56,440 --> 00:28:00,640 Speaker 2: seen you know, stocks such as Google, Tesla, We've i mean, 559 00:28:00,680 --> 00:28:03,639 Speaker 2: Apple's underperforming a little bit compared to the rest, but 560 00:28:03,720 --> 00:28:06,399 Speaker 2: there's a lot of optimism surrounding it. And basically this 561 00:28:06,480 --> 00:28:10,240 Speaker 2: is on the back of expectations of a more favorable 562 00:28:10,920 --> 00:28:12,760 Speaker 2: regulatory environment. 563 00:28:13,520 --> 00:28:15,800 Speaker 10: I mean, we've got other factors that are playing in. 564 00:28:15,880 --> 00:28:19,920 Speaker 2: You've got the optimism surrounding end of year seasonality, which 565 00:28:20,000 --> 00:28:23,840 Speaker 2: tends to work in favor as well. Federal reserves still 566 00:28:23,880 --> 00:28:27,320 Speaker 2: cutting interest rates, albeit more gradually expected. 567 00:28:28,160 --> 00:28:30,200 Speaker 10: So you know, there is a positive outlook. 568 00:28:30,320 --> 00:28:33,000 Speaker 2: There are some risks ahead, but that doesn't seem to 569 00:28:33,000 --> 00:28:34,080 Speaker 2: be the focus right now. 570 00:28:34,280 --> 00:28:37,320 Speaker 4: Look, there are fundamental risks ahead on your side of 571 00:28:37,320 --> 00:28:39,840 Speaker 4: the Atlantic where the bo is cutting but also talking 572 00:28:39,840 --> 00:28:43,240 Speaker 4: about inflationary pressures going forward. You've got the similar echoes 573 00:28:43,280 --> 00:28:44,720 Speaker 4: here in the US. I just want to dig into 574 00:28:44,760 --> 00:28:46,840 Speaker 4: Europe a little bit more though, because what was the 575 00:28:46,880 --> 00:28:49,600 Speaker 4: reaction when people are wanting to get invest in European 576 00:28:49,680 --> 00:28:51,520 Speaker 4: tech but it was a big week for the German 577 00:28:51,560 --> 00:28:53,680 Speaker 4: government as well for you, or is it all about 578 00:28:53,800 --> 00:28:56,719 Speaker 4: us still over European over international flavor? 579 00:28:58,040 --> 00:29:00,400 Speaker 10: That does feel like the way that it is right now. 580 00:29:00,440 --> 00:29:02,160 Speaker 2: I mean, they does feel like there is a lot 581 00:29:02,160 --> 00:29:07,760 Speaker 2: of uncertainty still in Europe. There seems to be concerns regarding, 582 00:29:07,800 --> 00:29:12,520 Speaker 2: as you said, the political situation in Germany, fragile growth, 583 00:29:13,240 --> 00:29:16,400 Speaker 2: just broadly speaking, the outlook doesn't feel the same. And 584 00:29:16,440 --> 00:29:19,640 Speaker 2: then on top of that, now with Trump sort of 585 00:29:19,640 --> 00:29:23,200 Speaker 2: taking the helm in the US, they're also concerns what 586 00:29:23,240 --> 00:29:26,240 Speaker 2: that might mean as far as tariff's to concerns. So, 587 00:29:26,600 --> 00:29:30,680 Speaker 2: you know, geographically speaking, the US is. 588 00:29:31,160 --> 00:29:33,560 Speaker 10: Now, without a doubt the preferred. 589 00:29:34,600 --> 00:29:37,960 Speaker 2: Geographical location for investing, particularly in big tech. 590 00:29:38,120 --> 00:29:39,240 Speaker 10: I think you can get. 591 00:29:39,040 --> 00:29:42,960 Speaker 2: Some feed across into Europe, which is going to be beneficial, 592 00:29:43,000 --> 00:29:46,160 Speaker 2: But I think we're going to see the big positives 593 00:29:46,240 --> 00:29:48,600 Speaker 2: play out more in the US compared to other areas. 594 00:29:49,560 --> 00:29:53,160 Speaker 5: You know, is there a single name that clients, investors 595 00:29:53,160 --> 00:29:54,680 Speaker 5: have been most focused on this week? 596 00:29:54,960 --> 00:29:56,400 Speaker 7: People phoning you about. 597 00:29:57,600 --> 00:30:04,400 Speaker 10: Tesla? What one? Yeah, because we've obviously we've had sort 598 00:30:04,440 --> 00:30:06,480 Speaker 10: of Trump and and Aneno. 599 00:30:06,160 --> 00:30:09,240 Speaker 2: Muss cozying up recently, and that doesn't seem to be 600 00:30:09,320 --> 00:30:12,920 Speaker 2: ending any time soon. So, you know, Tesla has absolutely 601 00:30:12,960 --> 00:30:16,640 Speaker 2: outperformed and I think there are expectations that it will 602 00:30:16,640 --> 00:30:19,120 Speaker 2: continue to do so. Now it's a bit interesting the 603 00:30:19,160 --> 00:30:22,960 Speaker 2: Tesla's story because obviously there is the expectation that actually 604 00:30:22,960 --> 00:30:28,720 Speaker 2: Trump may reduce benefits for the evy industry within the US, 605 00:30:28,760 --> 00:30:32,840 Speaker 2: But you know, Tesla's already such a big, well established 606 00:30:32,880 --> 00:30:36,040 Speaker 2: company that actually that means it's going to benefit from 607 00:30:36,040 --> 00:30:40,480 Speaker 2: that disadvantages to its competitors. So that's just one of 608 00:30:40,520 --> 00:30:43,120 Speaker 2: the reasons that we think that, yeah, that Tesla's going 609 00:30:43,160 --> 00:30:46,120 Speaker 2: to be well. It has been very much on the 610 00:30:46,280 --> 00:30:48,520 Speaker 2: on the phones. It's been mentioned, our clients are looking 611 00:30:48,520 --> 00:30:51,200 Speaker 2: at it. It's seen volumes go through the roof, and 612 00:30:51,240 --> 00:30:53,680 Speaker 2: the share price after after having a dodgy starts the 613 00:30:53,760 --> 00:30:54,840 Speaker 2: year is looking much better. 614 00:30:56,080 --> 00:31:00,800 Speaker 5: Is it even possible to model into an equity a 615 00:31:00,880 --> 00:31:06,520 Speaker 5: relationship between the world's richest man and President elect Donald Trump. 616 00:31:08,480 --> 00:31:11,400 Speaker 3: The good question, And I mean it's not something that 617 00:31:11,440 --> 00:31:16,240 Speaker 3: we would typically do or have had too much experience 618 00:31:16,360 --> 00:31:19,760 Speaker 3: doing previously, so, but I think it is. 619 00:31:19,760 --> 00:31:23,400 Speaker 2: Definitely something that needs to be taken into account when 620 00:31:23,400 --> 00:31:28,480 Speaker 2: we're looking at tests evaluations going towards twenty twenty five. 621 00:31:28,720 --> 00:31:30,400 Speaker 2: And I think that as we've seen, you know, it 622 00:31:30,480 --> 00:31:34,000 Speaker 2: has been reflected in the optimism in the share price. 623 00:31:35,120 --> 00:31:38,840 Speaker 5: Yeah, I just reflect on Gary Cohne and Steve Manouchin 624 00:31:39,000 --> 00:31:43,240 Speaker 5: and somewhat analogous, but maybe they're not Furnising Kota, Senior 625 00:31:43,280 --> 00:31:46,080 Speaker 5: analyst of City Index Financial Markets. Happy Friday, and thank 626 00:31:46,120 --> 00:31:48,240 Speaker 5: you very much. Coming up on the show, it's been 627 00:31:48,280 --> 00:31:51,600 Speaker 5: a stellar week for the crypto community as Donald Trump's 628 00:31:51,640 --> 00:31:55,760 Speaker 5: victory paves the way for deregulation and potentially more innovation 629 00:31:55,880 --> 00:31:56,480 Speaker 5: in blockchain. 630 00:31:56,520 --> 00:31:58,840 Speaker 7: We'll discuss neat Oh, look a bitcoin. 631 00:31:59,600 --> 00:32:15,640 Speaker 5: This has been bog technology. This is bitcoin, and it's 632 00:32:15,680 --> 00:32:18,640 Speaker 5: trading at its highest level ever, just below seventy six 633 00:32:18,720 --> 00:32:21,880 Speaker 5: thousand US dollars. Be token, it's worth saying again out loud, 634 00:32:22,160 --> 00:32:23,160 Speaker 5: highest level ever. 635 00:32:23,880 --> 00:32:25,320 Speaker 7: That's all bitcoin caroc. 636 00:32:26,920 --> 00:32:29,560 Speaker 4: It is ed and there's a reason for it because 637 00:32:29,600 --> 00:32:32,280 Speaker 4: many feel that the next administration, and in d Congress, 638 00:32:32,560 --> 00:32:36,640 Speaker 4: we particularly crypto friendly Delta Blockchain Fund general partner KeVita Guptra, 639 00:32:36,760 --> 00:32:39,040 Speaker 4: is with us, will it be What action do you 640 00:32:39,120 --> 00:32:42,000 Speaker 4: need to see first and foremost to make the new 641 00:32:42,160 --> 00:32:44,080 Speaker 4: record highs vindicated? 642 00:32:45,320 --> 00:32:48,520 Speaker 15: Hey, go line just the President elect and then of 643 00:32:48,600 --> 00:32:53,200 Speaker 15: course you have Elon Musk standing next to him, and 644 00:32:53,240 --> 00:32:56,760 Speaker 15: then you have all the BAC which has really donated 645 00:32:56,800 --> 00:33:00,000 Speaker 15: this time. This election has been one of the biggest 646 00:33:00,520 --> 00:33:04,640 Speaker 15: pack money going into a political motive and we literally 647 00:33:04,680 --> 00:33:07,239 Speaker 15: saw such a positive return out of it. Everything is up. 648 00:33:07,280 --> 00:33:10,040 Speaker 15: You have seen bitcoin all time high. Most of the 649 00:33:10,080 --> 00:33:12,840 Speaker 15: currencies are twenty to forty percent up, but look at 650 00:33:12,880 --> 00:33:16,400 Speaker 15: even dodgecoin. It has literally jumped up twenty one percent. 651 00:33:16,480 --> 00:33:16,720 Speaker 12: There. 652 00:33:17,480 --> 00:33:18,760 Speaker 6: Look at some of your investments. 653 00:33:18,760 --> 00:33:21,640 Speaker 4: You were like first checks into some significant DeFi projects. 654 00:33:21,640 --> 00:33:25,040 Speaker 4: One protocol, for example, Polygon, has had an epic time 655 00:33:25,160 --> 00:33:27,760 Speaker 4: because it, along with unisworp, was kind of singled out 656 00:33:27,800 --> 00:33:31,320 Speaker 4: by the SEC is potentially not living up to what 657 00:33:31,480 --> 00:33:34,560 Speaker 4: is or isn't a security. How important is a change 658 00:33:34,560 --> 00:33:38,400 Speaker 4: at the top of the SEC and clarity around regulation 659 00:33:38,480 --> 00:33:40,480 Speaker 4: going forward for projects and protocols such as. 660 00:33:40,400 --> 00:33:43,840 Speaker 15: This that is one of the main reason for a 661 00:33:43,840 --> 00:33:47,800 Speaker 15: big boom, Caroline, because we are seeing the whole DeFi ecosystem, 662 00:33:47,880 --> 00:33:52,280 Speaker 15: certainly uniswap RVE and all the DeFi protocols suddenly bumping 663 00:33:52,400 --> 00:33:54,640 Speaker 15: up their prices up to twenty to thirty five percent 664 00:33:54,720 --> 00:33:58,480 Speaker 15: jump because I think now everyone is expecting a change 665 00:33:58,520 --> 00:34:02,120 Speaker 15: in attitude with SEC with the new administration on the 666 00:34:02,200 --> 00:34:05,160 Speaker 15: him via President Trump has actually said in one of 667 00:34:05,200 --> 00:34:07,960 Speaker 15: his rallies that he's going to change the current SEC 668 00:34:08,040 --> 00:34:11,680 Speaker 15: commissioner and going to have much more pro friendly, pro 669 00:34:11,719 --> 00:34:12,759 Speaker 15: friendly agenda. 670 00:34:12,840 --> 00:34:14,719 Speaker 10: So everyone is expecting. 671 00:34:14,280 --> 00:34:17,400 Speaker 15: Much more clarity on regulations and the feeling but I 672 00:34:17,520 --> 00:34:21,360 Speaker 15: kept on feeling within the crypto ecosystem is that it 673 00:34:21,480 --> 00:34:23,840 Speaker 15: is going to be Crypto for America and America for 674 00:34:23,920 --> 00:34:26,240 Speaker 15: Crypto after a very very long time. 675 00:34:27,960 --> 00:34:29,360 Speaker 7: Cove to prior to the election. 676 00:34:30,040 --> 00:34:32,480 Speaker 5: Many hello, by the way, I was having some fun 677 00:34:32,520 --> 00:34:35,080 Speaker 5: with a bitcoin chart, but there are some serious things. 678 00:34:35,120 --> 00:34:37,520 Speaker 5: Like prior to the election, a lot of people came 679 00:34:37,560 --> 00:34:40,520 Speaker 5: in this program and said, well, look at the inflows 680 00:34:40,600 --> 00:34:44,480 Speaker 5: the ETF products, how significant that is. The harvening and 681 00:34:44,520 --> 00:34:47,480 Speaker 5: then sort of the vibe shift. Things were more positive 682 00:34:47,520 --> 00:34:50,640 Speaker 5: around the underlying technology. Well before we knew the outcome 683 00:34:50,680 --> 00:34:54,560 Speaker 5: of this election. I wonder how important those factors still 684 00:34:54,600 --> 00:34:56,680 Speaker 5: are whatever happens with this Trump presidency. 685 00:34:57,680 --> 00:35:00,360 Speaker 15: Absolutely, just the day of the election, ED look at 686 00:35:00,440 --> 00:35:03,400 Speaker 15: the amount one point two eight billion dollars in flow 687 00:35:03,440 --> 00:35:07,120 Speaker 15: for bitcoin ETF, seventy eight million dollar in flow in 688 00:35:07,200 --> 00:35:11,600 Speaker 15: twenty four hours in eat in eat ETF. Now people 689 00:35:11,680 --> 00:35:15,840 Speaker 15: are expecting solana ETF near ETF. But at the same time, 690 00:35:15,880 --> 00:35:18,920 Speaker 15: a lot of IPOs companies which have been sitting quite 691 00:35:19,360 --> 00:35:24,200 Speaker 15: like encourage circle chain chain analysis, bunch of them, so 692 00:35:24,640 --> 00:35:27,239 Speaker 15: they are basically have been sitting Falcon ex just been 693 00:35:27,280 --> 00:35:30,040 Speaker 15: sitting and wading. And we had that conversation with you 694 00:35:31,239 --> 00:35:34,160 Speaker 15: like three months before the election, like are we going 695 00:35:34,200 --> 00:35:35,880 Speaker 15: to see a big IPO boom? Are we going to 696 00:35:35,880 --> 00:35:37,960 Speaker 15: see a lot of legal construct Are we going to 697 00:35:38,000 --> 00:35:40,960 Speaker 15: see a lot of ETFs coming in? And I feel 698 00:35:41,000 --> 00:35:43,799 Speaker 15: like over next six months it's just gold for the 699 00:35:43,800 --> 00:35:44,640 Speaker 15: crypto industry. 700 00:35:45,640 --> 00:35:50,680 Speaker 5: Will Trump open the door to modernization of the financial system. 701 00:35:52,040 --> 00:35:54,319 Speaker 15: I think the most important thing which we have been 702 00:35:54,360 --> 00:35:59,360 Speaker 15: asking for over eight years is the clarity on regulations. Everybody, 703 00:35:59,480 --> 00:36:02,640 Speaker 15: every crypt founder across the world wants to work with 704 00:36:02,680 --> 00:36:06,280 Speaker 15: the government and sec in any regulatory body to have clarity, 705 00:36:06,600 --> 00:36:09,319 Speaker 15: and I feel like the biggest pathway which America can 706 00:36:09,400 --> 00:36:12,759 Speaker 15: set trend is to have that legal clarity and to 707 00:36:12,880 --> 00:36:16,839 Speaker 15: create a safe environment for retail customers and for technology 708 00:36:16,840 --> 00:36:19,640 Speaker 15: builders to work together. So I think that's going to 709 00:36:19,680 --> 00:36:23,000 Speaker 15: be the biggest reason for all these movement of prices 710 00:36:23,080 --> 00:36:23,399 Speaker 15: to be. 711 00:36:23,440 --> 00:36:27,200 Speaker 6: Up Delta blockchains. Cavita Gupta, really great to have your 712 00:36:27,400 --> 00:36:28,279 Speaker 6: take today. Thank you. 713 00:36:37,480 --> 00:36:41,400 Speaker 5: Some TikTok staff and creators are hoping President elects Trump 714 00:36:41,680 --> 00:36:44,680 Speaker 5: may become the social media app savior as it faces 715 00:36:44,719 --> 00:36:48,759 Speaker 5: a potential ban come January. Bloombergs Alexandra Lavine joins US 716 00:36:48,800 --> 00:36:51,719 Speaker 5: now and there are many questions. I mean, President elect 717 00:36:51,719 --> 00:36:54,880 Speaker 5: Trump has hinted that he opposes an outright ban, but 718 00:36:54,960 --> 00:36:57,480 Speaker 5: there's a legislative action underway. 719 00:36:57,719 --> 00:36:58,640 Speaker 7: What have you written about? 720 00:36:59,640 --> 00:37:02,400 Speaker 16: Well, I think that really since Biden had signed this 721 00:37:02,480 --> 00:37:06,040 Speaker 16: law earlier this year that would effectively ban TikTok in 722 00:37:06,080 --> 00:37:08,799 Speaker 16: the new year, unless it's China based parent company by 723 00:37:08,880 --> 00:37:12,479 Speaker 16: Dan sells it. The big question is the big question 724 00:37:12,520 --> 00:37:14,520 Speaker 16: has been is this actually going to happen? And I 725 00:37:14,520 --> 00:37:18,120 Speaker 16: think the feeling was really if Harris is elected that 726 00:37:18,239 --> 00:37:21,040 Speaker 16: she would sort of finish the job that Biden had started. 727 00:37:21,520 --> 00:37:22,360 Speaker 6: Now that Trump. 728 00:37:22,480 --> 00:37:24,880 Speaker 16: You know, now that Trump has been elected, he was 729 00:37:25,040 --> 00:37:27,719 Speaker 16: originally the president who tried to ban TikTok. Back in 730 00:37:27,719 --> 00:37:30,200 Speaker 16: twenty twenty, on the campaign trail, he did a stunning 731 00:37:30,200 --> 00:37:32,120 Speaker 16: one to eighty saying that now he doesn't believe in 732 00:37:32,120 --> 00:37:33,920 Speaker 16: a ban. And so I think the reason why there 733 00:37:33,960 --> 00:37:36,200 Speaker 16: is now even more uncertainty than there was prior is 734 00:37:36,239 --> 00:37:39,760 Speaker 16: because his rhet his rhetoric has completely changed, leaving folks 735 00:37:39,840 --> 00:37:42,480 Speaker 16: inside the company wondering whether he will in fact follow 736 00:37:42,520 --> 00:37:44,040 Speaker 16: through on what he has said. 737 00:37:44,320 --> 00:37:46,880 Speaker 4: And then there's the closeness with Musk, who has X 738 00:37:46,920 --> 00:37:49,200 Speaker 4: so whether he sees TikTok his arrival, even though perhaps 739 00:37:49,239 --> 00:37:51,520 Speaker 4: he's a bit more pro China than others, can you 740 00:37:51,640 --> 00:37:53,120 Speaker 4: just give us the very next step? 741 00:37:53,200 --> 00:37:55,440 Speaker 6: What do we look for in the legal action? At least? 742 00:37:55,800 --> 00:37:57,839 Speaker 16: So there are a bunch of things that Trump could 743 00:37:57,880 --> 00:38:00,279 Speaker 16: try to do once he takes office to try to 744 00:38:00,480 --> 00:38:03,040 Speaker 16: reverse what has been done or try to stall it. 745 00:38:04,080 --> 00:38:06,520 Speaker 16: And I think though a lot of the things that 746 00:38:06,600 --> 00:38:10,040 Speaker 16: he could do would be really difficult, they'd be uphill challenges, 747 00:38:10,080 --> 00:38:12,640 Speaker 16: they'd be politically sort of unpopular amongst folks in his 748 00:38:12,680 --> 00:38:15,320 Speaker 16: own party. Who were really key to getting this law 749 00:38:15,440 --> 00:38:18,080 Speaker 16: to force a divestiture or to be on the platform 750 00:38:18,120 --> 00:38:19,880 Speaker 16: getting it across the finish line in the first place. 751 00:38:20,680 --> 00:38:23,600 Speaker 16: He could come up with another plan that satisfies both 752 00:38:23,600 --> 00:38:26,040 Speaker 16: the company and the US government on national security. He 753 00:38:26,040 --> 00:38:28,359 Speaker 16: could look for an American buyer, and he's got people 754 00:38:28,400 --> 00:38:32,320 Speaker 16: who are certainly interested, who are political and political allies 755 00:38:32,320 --> 00:38:37,040 Speaker 16: of his worlds, yes, exactly. And he could also try 756 00:38:37,040 --> 00:38:38,920 Speaker 16: to get Congress to repeal or amend the law that 757 00:38:38,960 --> 00:38:41,759 Speaker 16: they had passed. I think, though, the most likely thing, 758 00:38:41,880 --> 00:38:44,239 Speaker 16: and the path of least resistance would be to let 759 00:38:44,239 --> 00:38:46,319 Speaker 16: this legal process that you've talked about play out on 760 00:38:46,360 --> 00:38:50,480 Speaker 16: its own. So we're expecting a decision in December that 761 00:38:51,160 --> 00:38:53,839 Speaker 16: where the courts in DC will rule whether the law 762 00:38:53,880 --> 00:38:56,440 Speaker 16: that President Biden has signed should be overturned or whether 763 00:38:56,480 --> 00:38:59,520 Speaker 16: it should be upheld. And then it's likely that legal 764 00:38:59,560 --> 00:39:02,800 Speaker 16: proceeding following that that TikTok may well fight. We'll just 765 00:39:02,880 --> 00:39:05,480 Speaker 16: drag on well past the January deadline for when the 766 00:39:05,480 --> 00:39:07,400 Speaker 16: band would have gone into effect. So I think the 767 00:39:07,440 --> 00:39:09,680 Speaker 16: easiest thing for Trump would really be to sit back 768 00:39:10,200 --> 00:39:13,680 Speaker 16: watch the legal process play out, and that way the 769 00:39:13,760 --> 00:39:15,960 Speaker 16: legal process takes care of it without him having to 770 00:39:15,960 --> 00:39:18,799 Speaker 16: be super proactive, and he then does not have to 771 00:39:18,840 --> 00:39:22,480 Speaker 16: do a complete about face on his twenty twenty crusade 772 00:39:22,480 --> 00:39:24,799 Speaker 16: against TikTok when he initially tried to ban it, and 773 00:39:25,040 --> 00:39:27,640 Speaker 16: he would avoid then being seen as sort of softening 774 00:39:27,640 --> 00:39:30,239 Speaker 16: this tough on China stance. It's been super central to 775 00:39:30,400 --> 00:39:31,560 Speaker 16: his entire agenda. 776 00:39:32,000 --> 00:39:35,719 Speaker 4: Alexandra Levine, all things TikTok, We appreciate it. Meanwhile, like 777 00:39:35,880 --> 00:39:38,920 Speaker 4: traditional media executives maybe Sad's Love, for example, ever at 778 00:39:38,920 --> 00:39:41,319 Speaker 4: Water Brothers Discovery or Perry suk over a Next Star, 779 00:39:41,719 --> 00:39:45,920 Speaker 4: see a possibility for more mergers and indeed deregulation as 780 00:39:45,960 --> 00:39:49,240 Speaker 4: Donald Trump returns to the presidency. Neowberg's Kelsey Griffiths joins 781 00:39:49,280 --> 00:39:52,000 Speaker 4: us for more. So M and A gonna suddenly launch 782 00:39:52,080 --> 00:39:54,960 Speaker 4: through when it comes to at least the more local 783 00:39:55,040 --> 00:39:57,279 Speaker 4: news and TV side of the equation. 784 00:39:58,719 --> 00:40:02,319 Speaker 1: Well, if the broadcast executives have their way, that's exactly right. 785 00:40:02,840 --> 00:40:03,040 Speaker 12: You know. 786 00:40:03,120 --> 00:40:05,680 Speaker 1: I think we've heard on Earning's calls over the last 787 00:40:05,719 --> 00:40:09,160 Speaker 1: couple of days that these executives are really looking for 788 00:40:09,239 --> 00:40:13,080 Speaker 1: a Trump administration that is more friendly to deal making 789 00:40:13,120 --> 00:40:16,480 Speaker 1: of all kinds, whether that is in the broadcast space, 790 00:40:16,560 --> 00:40:20,120 Speaker 1: whether that's in the content space, whether that is permitting 791 00:40:20,160 --> 00:40:23,000 Speaker 1: some mergers that you know, maybe wouldn't have even been 792 00:40:23,080 --> 00:40:26,120 Speaker 1: pitched under the Biden administration. So I think it has 793 00:40:26,160 --> 00:40:29,759 Speaker 1: a lot of folks like really watching this space, Chelsey. 794 00:40:29,840 --> 00:40:33,360 Speaker 5: Let's think about a name like Nexstar, how its business 795 00:40:33,400 --> 00:40:37,080 Speaker 5: is set up, but it's got some history with government agencies. 796 00:40:37,280 --> 00:40:40,040 Speaker 5: What kind of happens to them under Trump? Two point zero? 797 00:40:41,600 --> 00:40:42,120 Speaker 6: That's right. 798 00:40:42,320 --> 00:40:47,000 Speaker 1: So Nextstar is the largest owner of local broadcast stations 799 00:40:47,040 --> 00:40:50,839 Speaker 1: in the country, and they've previously tried to buy up 800 00:40:50,880 --> 00:40:55,040 Speaker 1: more stations. They actually got in trouble with the FCC 801 00:40:55,239 --> 00:40:57,360 Speaker 1: and had to pay a one point two million dollar 802 00:40:57,440 --> 00:41:02,360 Speaker 1: fine earlier this year because as part of a merger agreement, 803 00:41:02,440 --> 00:41:06,240 Speaker 1: they were supposed to divest some stations and they actually 804 00:41:06,280 --> 00:41:09,960 Speaker 1: effectively maintained control of a station in New York that 805 00:41:10,080 --> 00:41:13,839 Speaker 1: was at least what the FCC found and ended up 806 00:41:14,440 --> 00:41:17,280 Speaker 1: hitting them with that fine. So Nexstar has been looking 807 00:41:17,320 --> 00:41:21,040 Speaker 1: around for a while for other ways to expand sort 808 00:41:21,040 --> 00:41:23,880 Speaker 1: of their broadcast empire, and they're hoping that under the 809 00:41:23,880 --> 00:41:28,440 Speaker 1: Trump administration, the Federal Communications Commission could actually get rid 810 00:41:28,520 --> 00:41:32,399 Speaker 1: of some of the broadcast ownership restrictions that have held 811 00:41:32,400 --> 00:41:35,520 Speaker 1: them back in the past, So some rule changes could help. 812 00:41:35,800 --> 00:41:38,719 Speaker 6: What about people who need the FCC or within it, 813 00:41:40,440 --> 00:41:40,919 Speaker 6: That's right. 814 00:41:41,320 --> 00:41:45,640 Speaker 1: So we're looking at an incoming Republican administration across the 815 00:41:45,640 --> 00:41:48,520 Speaker 1: government obviously, but that means big changes at the FCC. 816 00:41:49,040 --> 00:41:51,719 Speaker 1: My sources are telling me that we are very likely 817 00:41:51,760 --> 00:41:55,000 Speaker 1: to see the senior Republican at the FCC, Brendan Carr, 818 00:41:55,360 --> 00:41:59,759 Speaker 1: be nominated as FCC chair and Car could, you know, 819 00:41:59,760 --> 00:42:04,280 Speaker 1: really makes some big changes for broadcast executives in doing 820 00:42:04,360 --> 00:42:09,200 Speaker 1: some irregulatory action that would benefit the broadcasters. He would 821 00:42:09,239 --> 00:42:13,120 Speaker 1: also have some pretty big effects on the rest of 822 00:42:13,120 --> 00:42:14,080 Speaker 1: the media landscape. 823 00:42:14,120 --> 00:42:14,279 Speaker 10: You know. 824 00:42:14,440 --> 00:42:19,440 Speaker 1: Carr has aligned himself with Elon Musk. He has talked 825 00:42:19,480 --> 00:42:24,040 Speaker 1: a lot about TikTok and rolling back its presence here 826 00:42:24,040 --> 00:42:27,399 Speaker 1: in the US over national security concerns. So it could 827 00:42:27,400 --> 00:42:31,080 Speaker 1: be a very different FCC under Car. So we're going 828 00:42:31,160 --> 00:42:32,000 Speaker 1: to be watching that too. 829 00:42:33,200 --> 00:42:36,160 Speaker 5: Bloombo's Kelsey Griffiths, great reporting and happy Friday, Thank you 830 00:42:36,239 --> 00:42:36,640 Speaker 5: very much. 831 00:42:37,640 --> 00:42:41,040 Speaker 6: What a week? What a day? Or another edition of 832 00:42:41,040 --> 00:42:42,280 Speaker 6: Bloombo Tchnology. 833 00:42:41,880 --> 00:42:45,720 Speaker 5: Yet, Yeah recap if there's any day to recaps today, 834 00:42:46,000 --> 00:42:46,920 Speaker 5: go on the podcast. 835 00:42:47,000 --> 00:42:49,200 Speaker 7: You know where the podcast is. Thank you to the 836 00:42:49,239 --> 00:42:50,040 Speaker 7: team in New York. 837 00:42:49,960 --> 00:42:52,879 Speaker 5: City, a historic week around the world, and the team 838 00:42:52,880 --> 00:42:53,600 Speaker 5: here in SF. 839 00:42:53,960 --> 00:42:56,680 Speaker 7: This is Bloombo Technology.