WEBVTT - Tech Stocks Jump and Musk Pitches Himself to Trump 0:00:01.480 --> 0:00:04.600 From Mahard where Innovation of Money and Power. 0:00:04.400 --> 0:00:06.760 Collie in Silicon Vallet NBN. 0:00:07.120 --> 0:00:10.480 This is Bloomberg Technology with Caroline Hyde and. 0:00:10.560 --> 0:00:11.640 Ed Ludlove. 0:00:25.600 --> 0:00:27.160 Live from New York and San Francisco. 0:00:27.320 --> 0:00:30.320 This is Bloomberg Technology coming up technology stocks. 0:00:30.320 --> 0:00:32.239 They jump on cooling inflation, but. 0:00:32.320 --> 0:00:35.560 City strategists still see a risk of a sell off. 0:00:35.760 --> 0:00:40.400 We discuss Elon Musk pictures himself as government spendings are 0:00:40.400 --> 0:00:43.480 in an hour's long Glitchy spaces on X with former 0:00:43.520 --> 0:00:44.680 President Trump. 0:00:44.720 --> 0:00:46.200 And Google's gadget game. 0:00:46.280 --> 0:00:49.479 We discuss the search Giant's the latest handsets and AI 0:00:49.680 --> 0:00:52.519 goals were first. That's checking on these markets and we 0:00:52.560 --> 0:00:54.160 are on the up, up and the up. And when 0:00:54.160 --> 0:00:55.920 it comes to the nasgag in the NASA one hundred 0:00:56.000 --> 0:01:00.480 hy Cooling Inflation Science PPI data today signifies that tomorrow 0:01:00.560 --> 0:01:02.080 we have all liyes on CPI and. 0:01:02.040 --> 0:01:03.800 We're managing to cush I know, up more than five 0:01:03.840 --> 0:01:06.240 point five percent. Let's call it. At the moment. 0:01:06.440 --> 0:01:08.640 Over the course of the last four training days, Ed, 0:01:08.920 --> 0:01:10.680 what are the key stocks that driver us higher? 0:01:11.440 --> 0:01:13.320 So these are three names that also just happen to 0:01:13.360 --> 0:01:15.480 be the biggest points drivers to the upside. On the 0:01:15.560 --> 0:01:18.280 Nasdaq one hundred, Tesla is higher. We will talk about 0:01:18.440 --> 0:01:21.679 the focus on evs between Musk and Trump in that space. 0:01:21.760 --> 0:01:23.880 Is also taking a look at Nvidia, on track for 0:01:23.920 --> 0:01:25.080 its biggest two day. 0:01:24.959 --> 0:01:26.880 Jump since late May. 0:01:27.000 --> 0:01:29.720 I don't think we can talk enough about this, even 0:01:29.760 --> 0:01:31.760 though earnings are still far away, almost twenty eight And 0:01:31.800 --> 0:01:35.560 then Starbucks, Okay, Starbucks is not necessarily a technology company. 0:01:36.080 --> 0:01:39.240 Laxman's out as CEO, the protele CEO has been brought in. 0:01:39.640 --> 0:01:42.080 Maybe there's a digital story there, but it is the 0:01:42.080 --> 0:01:44.520 biggest points gainer on the Nasdaq one hundred and frankly 0:01:44.560 --> 0:01:47.000 on social media, Starbucks is a lot of whatever one's 0:01:47.000 --> 0:01:49.000 talking about as well. And look at that gain twenty 0:01:49.040 --> 0:01:50.640 two percent on a new CEO. 0:01:50.760 --> 0:01:51.880 Interesting, got to. 0:01:51.880 --> 0:01:52.400 Talk about it. 0:01:52.440 --> 0:01:54.120 Meanwhile, though, let's just get back to our core of 0:01:54.160 --> 0:01:56.760 tech stocks. They are jumping, but there is still this 0:01:56.840 --> 0:01:59.640 warning from City Group that called our rye stocks could 0:01:59.640 --> 0:02:04.160 come back under significant pressure basically on any negative economic data. 0:02:04.400 --> 0:02:07.400 That says investor positioning remains extended on the butish side, 0:02:07.440 --> 0:02:09.560 despite of course, what has been the past. 0:02:09.280 --> 0:02:11.320 Month's set off for more on these markets. 0:02:11.440 --> 0:02:14.120 That's bringing Cally Cox's chief market strateses that whit holds 0:02:14.280 --> 0:02:17.360 wealth management. So it's interesting City is pointing out here, 0:02:17.400 --> 0:02:19.480 there's twenty two and a half billion dollar worth of 0:02:19.480 --> 0:02:21.959 long positions still out there tracking the futures on the 0:02:22.000 --> 0:02:25.480 NAS that one hundred. Why are we still seeing these 0:02:25.560 --> 0:02:28.640 long bets? Are they right to be long at the moment? 0:02:30.480 --> 0:02:33.280 So sure, I think we agree with City there. I mean, 0:02:33.320 --> 0:02:33.960 tech stocks have. 0:02:34.000 --> 0:02:37.000 Had a stellar year so far minus the last month, 0:02:37.560 --> 0:02:40.679 and you know, with so many economic conditions changing, with 0:02:40.760 --> 0:02:43.440 the expectation for interest rates changing, we think there could 0:02:43.440 --> 0:02:46.200 be more volatility there just because tech has been a 0:02:46.280 --> 0:02:47.400 victim of its own success. 0:02:47.960 --> 0:02:50.560 So to that end, to people reposition, how would you 0:02:50.639 --> 0:02:53.280 if you found yourself generally long some of the big 0:02:53.520 --> 0:02:56.359 mega while the Magnificent seven shall we still call them? 0:02:56.560 --> 0:02:58.639 How do you reposition that? Should you reposition that? 0:03:00.560 --> 0:03:03.119 So, look, we're a big believer in tech, it's hard 0:03:03.240 --> 0:03:05.720 not to be. But you know, we also believe in risk, 0:03:05.800 --> 0:03:08.280 in managing a portfolio that helps you get from point 0:03:08.360 --> 0:03:09.200 A to point. 0:03:09.000 --> 0:03:10.519 B iNeST way possible. 0:03:10.760 --> 0:03:13.480 So we've been talking to clients about rebalancing out of tech, 0:03:13.680 --> 0:03:15.520 you know, selling a little bit of those tech cheers 0:03:15.560 --> 0:03:17.760 that have done so well this year and looking at 0:03:17.800 --> 0:03:21.280 you know, potentially smaller stocks, mid cap stocks, and looking 0:03:21.320 --> 0:03:23.360 at those rate sensitive sectors outside of tech. 0:03:24.560 --> 0:03:26.720 Kelly, I don't apologize this. 0:03:26.760 --> 0:03:30.280 We were sharing shares of Nvidia earnings of August twenty eighth. 0:03:31.120 --> 0:03:34.320 How anxious a period of time will it be for 0:03:34.400 --> 0:03:36.560 financial markets until that earnings print? 0:03:38.600 --> 0:03:40.000 Well, I apologize about that. 0:03:40.040 --> 0:03:42.280 I think that's on a lot of investors' minds right now. 0:03:42.760 --> 0:03:45.040 I know that's something that we're watching just because Nvidia 0:03:45.120 --> 0:03:47.240 shows that it can just it can beat any kind 0:03:47.240 --> 0:03:49.960 of expectation you put out there over and over again. 0:03:50.080 --> 0:03:52.880 Is really the hot stock when it comes to fundamentals 0:03:52.880 --> 0:03:54.600 within the tech sector. 0:03:54.880 --> 0:03:55.960 The bar is a little bit higher. 0:03:56.160 --> 0:03:58.600 The bar in general has been higher for tech earnings 0:03:58.600 --> 0:04:01.960 this season. But the AI story is still quite real. 0:04:02.040 --> 0:04:04.160 I think my question is, you know, what kind of 0:04:04.160 --> 0:04:06.280 guidance are we going to get out of video? How 0:04:06.320 --> 0:04:09.840 are investors going to digest a sales and you know, 0:04:09.920 --> 0:04:13.840 earnings estament beat if bad guidance comes on the back end. 0:04:14.560 --> 0:04:16.080 You know, I think the AI story is just a 0:04:16.120 --> 0:04:17.320 little complicated right now. 0:04:17.360 --> 0:04:19.039 I think it's lost a little bit of its luster. 0:04:20.320 --> 0:04:22.320 I think I'm right in saying Kelly that you're probably 0:04:22.320 --> 0:04:25.400 in the camp of investors that look at the technology sector, 0:04:25.440 --> 0:04:28.000 particularly cyclical areas of it, maybe the chip space, and 0:04:28.040 --> 0:04:29.960 say growth cycles come and go. 0:04:30.480 --> 0:04:33.760 I get that, but what if the growth cycle goes 0:04:33.920 --> 0:04:34.599 within Video? 0:04:35.000 --> 0:04:38.200 You know, it's not like Jensen huang To, I don't know, 0:04:38.800 --> 0:04:41.160 give a modest outlook. I guess is the lesson we've 0:04:41.200 --> 0:04:44.120 learned so far because his company is performing, but there 0:04:44.160 --> 0:04:47.080 is a scenario where he says, actually things have slowed down. 0:04:48.680 --> 0:04:51.120 Yeah, it's a great question, and I have to remind 0:04:51.120 --> 0:04:53.320 people too that in Video is just one player in 0:04:53.320 --> 0:04:56.880 the semiconductor sector. You know, obviously it's fundamentals have been 0:04:57.320 --> 0:05:00.000 incredibly good, but we still don't know who the winner 0:05:00.279 --> 0:05:03.000 when it comes to AI, when it comes to the 0:05:03.000 --> 0:05:06.440 AI story, and we could see other chip makers take 0:05:06.480 --> 0:05:08.840 some of that market share away from in Video. You know, 0:05:08.960 --> 0:05:11.200 I think if Jensen does come out and say that 0:05:11.720 --> 0:05:14.760 growth that isn't as great as we're seeing, or growth 0:05:14.760 --> 0:05:16.880 hasn't been as great as we've seen in the past, 0:05:17.320 --> 0:05:19.000 I think investors could get a little. 0:05:18.760 --> 0:05:20.840 Bit worried there, and that's a reason why you. 0:05:20.760 --> 0:05:23.520 Should maybe you know, rebalance some money out of tech. 0:05:23.800 --> 0:05:26.159 You know, the expectations for the tech sector are just 0:05:26.240 --> 0:05:29.000 so high right now that it's hard to see tech 0:05:29.080 --> 0:05:30.200 beating those for a while. 0:05:30.880 --> 0:05:34.320 Kenny, It's interesting that while we have one side of 0:05:34.400 --> 0:05:37.240 Citi's mouth saying, look, we're thinking we've got a big 0:05:37.279 --> 0:05:39.960 exposure to a downside risk if we do get some 0:05:40.080 --> 0:05:42.520 worrying economic data on the other side of their mouth 0:05:42.839 --> 0:05:46.680 speaking about City Group analysts of basically buying the dip 0:05:46.880 --> 0:05:48.720 in chip names in particular. 0:05:48.200 --> 0:05:49.200 They still like in video. 0:05:49.279 --> 0:05:52.640 They're thinking maybe some other key names could be abroadening 0:05:52.720 --> 0:05:55.880 out because look, when you look historically, other banks have 0:05:55.920 --> 0:05:58.479 shown that we've had four quarters of an up cycle 0:05:58.520 --> 0:06:01.320 for chips, but actually usually with us about ten quarters. 0:06:01.760 --> 0:06:05.080 How do you remain exposed without perhaps just keeping on 0:06:05.160 --> 0:06:07.000 betting on the same things. How do you take profit 0:06:07.080 --> 0:06:09.760 but still diversify within technology? 0:06:11.200 --> 0:06:14.680 You do it carefully, and look, before any conversation about rebalancing, 0:06:14.760 --> 0:06:16.920 you have to realize what your risk tolerance in time 0:06:16.960 --> 0:06:17.680 horizon is. 0:06:18.120 --> 0:06:19.560 If you're looking at a five. 0:06:19.320 --> 0:06:22.039 To ten year time horizon and you're really excited about AI, 0:06:22.440 --> 0:06:24.560 then hey, you know, any sell off that we see 0:06:24.560 --> 0:06:27.560 in the tech sector, especially here, could be an opportunity 0:06:27.600 --> 0:06:30.279 for you. You just have to, you know, potentially wait it 0:06:30.320 --> 0:06:33.039 out a little bit. In terms of rebalancing, we like 0:06:33.160 --> 0:06:35.600 slow and steady, you know, maybe selling a little bit 0:06:35.680 --> 0:06:38.919 here and there, revisiting your targets when it comes to 0:06:38.960 --> 0:06:41.200 single stocks that you're owning and sectors that you're owning, 0:06:41.400 --> 0:06:44.080 and just understanding that there's a market outside of tech, 0:06:44.160 --> 0:06:47.039 and you know, there are some exciting stories in other sectors. 0:06:47.040 --> 0:06:48.680 I know we're on a tech show right now, but 0:06:49.960 --> 0:06:50.159 you know. 0:06:50.360 --> 0:06:52.520 Tech is exciting about Patti nothing else. 0:06:52.680 --> 0:06:53.719 Nothing else matters. 0:06:54.400 --> 0:06:56.320 But over the next year or so, we could see 0:06:56.360 --> 0:06:59.720 some other socks tape leadership, and in fact we're already. 0:06:59.480 --> 0:07:02.320 Seeing that, you know here on Bloomberg Technology. 0:07:02.360 --> 0:07:05.159 Cali I like to ask about the FED if I may. 0:07:06.040 --> 0:07:09.600 After PPI this morning, what's the CALI call on what 0:07:09.640 --> 0:07:12.080 the FED does? Because, as we say on this show, 0:07:12.400 --> 0:07:15.280 higher rates discount the present values of future cash flows, 0:07:15.400 --> 0:07:17.440 and when you're technology investor, that's important. 0:07:19.320 --> 0:07:21.200 So the FED looks like it's going to have to 0:07:21.240 --> 0:07:24.080 cut in September. CPI data confirmed this this morning. 0:07:24.480 --> 0:07:24.960 Excuse me. 0:07:25.040 --> 0:07:27.320 PPI data confirmed this this morning. I mean, we saw 0:07:28.640 --> 0:07:32.000 quite a drop in services PPI or slowing down in 0:07:32.040 --> 0:07:36.680 services PPI, and that just boosts the story for inflation 0:07:36.840 --> 0:07:39.160 getting lower and lower and close to the Fed's target. 0:07:39.680 --> 0:07:41.840 And if the Fed does start cutting rates in September, 0:07:41.880 --> 0:07:45.000 we could see investors' behavior around tech stocks change. 0:07:45.240 --> 0:07:45.920 I'll be honest. 0:07:46.360 --> 0:07:49.520 Tech stocks are growth stocks, but I think that there 0:07:49.520 --> 0:07:51.400 are a lot of flavors in the tech industry and 0:07:51.480 --> 0:07:54.880 investors are looking at them quite differently. So if we 0:07:54.960 --> 0:07:58.560 see growth maintain but we see rates come down, I 0:07:58.600 --> 0:08:01.720 actually think that this rotate out of tech could continue 0:08:01.880 --> 0:08:04.160 this rotation in to rate sensitive sectors. 0:08:04.600 --> 0:08:06.800 But you have to remember, if we do hit a rough. 0:08:06.560 --> 0:08:09.240 Patch in the economy, some of the strongest stocks on 0:08:09.280 --> 0:08:12.200 the market are tech stocks, so investors could look at 0:08:12.200 --> 0:08:14.119 those as a recession trade of sorts. 0:08:15.120 --> 0:08:18.280 We got all the flavors of technology here on Bloomberg Technology. 0:08:18.320 --> 0:08:18.920 Take your pick. 0:08:19.080 --> 0:08:22.520 Kellie Cox, chief market strategist Atridhol's Wealth Management, Thank you 0:08:22.680 --> 0:08:25.440 very much. Coming up from the show, Elon Musk sat 0:08:25.520 --> 0:08:29.400 down with Donald Trump for a wide ranging interview, which 0:08:29.400 --> 0:08:32.000 he called more of a conversation last night. On a 0:08:32.040 --> 0:08:34.480 next basis, we'll discuss this is Bloomberg. 0:08:48.679 --> 0:08:50.040 I think it would be great to just have a 0:08:50.040 --> 0:08:53.400 government efficiency commission that takes a look at these things 0:08:53.520 --> 0:08:58.520 and just ensures that the taxpayer money, the taxpayers are 0:08:58.800 --> 0:09:01.000 harder money in a good way. 0:09:02.880 --> 0:09:04.079 And I'd be happy to. 0:09:04.040 --> 0:09:05.280 Help out on such a commission. 0:09:05.320 --> 0:09:07.120 I'd love it if it were formed for you. 0:09:07.120 --> 0:09:08.280 You're the greatest cutter. 0:09:11.120 --> 0:09:14.960 That was Elon Musk taking the opportunity to pitch himself 0:09:15.000 --> 0:09:18.319 for a role in a second Trump administration on last 0:09:18.400 --> 0:09:23.480 night's Eventful Spaces with the former President. Bloomberg's Max Chafkin 0:09:23.880 --> 0:09:27.200 of Elon Inc. Joins us now, and I mean, there's 0:09:27.240 --> 0:09:29.920 so much to recap for me. That was in the 0:09:29.960 --> 0:09:33.600 context of an election cycle, important like this idea that 0:09:33.720 --> 0:09:37.120 Musk would maybe have a role if Trump were re 0:09:37.160 --> 0:09:40.120 elected to the White House, and Musk also was at 0:09:40.160 --> 0:09:44.000 pains to kind of clarify his own politics. You tuned 0:09:44.040 --> 0:09:45.400 in for many hours as well. 0:09:46.000 --> 0:09:49.280 Let's start there, Yeah, I mean nearly three hours long. 0:09:49.720 --> 0:09:53.240 With the lengthy delay, there were a long bunch of 0:09:53.240 --> 0:09:56.320 technical difficulties that caused it to start laid. I mean, 0:09:56.320 --> 0:09:59.000 in terms of the sort of must Trump relationship, what 0:09:59.080 --> 0:10:03.680 I heard was Musk being extremely deferential to Trump in 0:10:03.720 --> 0:10:06.680 a way that is pretty unusual for him. He's obviously 0:10:06.760 --> 0:10:09.319 a combative guy. I mean, not only was he kind 0:10:09.360 --> 0:10:12.000 of asking for a job, but he was nodding along 0:10:12.160 --> 0:10:18.680 during lengthy sections where Trump was seeming to downplay climate change. 0:10:19.280 --> 0:10:22.480 You know, Musk has has a lot to potentially gain here, beyond, 0:10:22.880 --> 0:10:27.640 of course, potential employment. Tesla and SpaceX both have a 0:10:27.640 --> 0:10:31.559 lot to gain by a friendly regulatory environment, both in 0:10:31.640 --> 0:10:35.040 terms of subsidies government contracts, as well as you know, 0:10:35.200 --> 0:10:40.920 potential regulation or lack thereof, of things like the potential ROBOTAXI. 0:10:40.960 --> 0:10:45.440 Let's just go into that awkwardness around climate change and 0:10:45.480 --> 0:10:48.080 the fact that he calls himself sort of well, you 0:10:48.080 --> 0:10:50.240 can be an environmentalist. You can still do good for 0:10:50.320 --> 0:10:53.240 the planet, but not have to sacrifice on ultimately a 0:10:53.320 --> 0:10:53.760 great car. 0:10:53.840 --> 0:10:56.120 It was kind of his pitch to a whole new audience. 0:10:56.240 --> 0:10:59.560 Well, you know, weirdly, that has been Musk's pitch for 0:10:59.640 --> 0:11:02.600 some time, almost from the very beginning. What was different 0:11:02.840 --> 0:11:05.120 was his willingness to kind of go along with the 0:11:05.200 --> 0:11:08.640 idea that climate change is not existential. You know, back 0:11:09.280 --> 0:11:11.880 during the early days of Tesla and even especially during 0:11:11.920 --> 0:11:14.280 the Obama years, Musk would emphasize that we're you know, 0:11:14.320 --> 0:11:17.560 the planner is running out of oil, that climate change 0:11:17.640 --> 0:11:20.320 is a really big problem. Trump during this space said 0:11:20.440 --> 0:11:22.600 We've got five hundred years as long before we run 0:11:22.600 --> 0:11:24.800 out of oil. You know, climate change is not that 0:11:24.840 --> 0:11:26.800 big a deal. We don't need all electric cars. 0:11:26.880 --> 0:11:27.040 You know. 0:11:27.080 --> 0:11:29.400 These are all things that at an earlier time would 0:11:29.400 --> 0:11:31.960 have really set Elon musk off, and he has, you know, 0:11:32.240 --> 0:11:34.880 navigated to a slightly different position, a position that is 0:11:35.240 --> 0:11:39.000 definitely much more accommodating of kind of right wing skepticism 0:11:39.120 --> 0:11:40.560 of man made climate change. 0:11:41.320 --> 0:11:44.199 Max electric vehicles would discuss. Actually, I want to bring 0:11:44.280 --> 0:11:47.520 some news this morning to an audience that in response 0:11:47.559 --> 0:11:50.600 to the spaces last night, the UAW, the United Auto 0:11:50.640 --> 0:11:55.280 Workers union, filed a labor complaint, a practice charge against 0:11:55.280 --> 0:11:58.679 both Trump and musk And I'm summarizing, but they basically 0:11:58.720 --> 0:12:01.280 said that during the course of that conversation, the two 0:12:01.360 --> 0:12:04.560 men illegally intimidated. 0:12:05.880 --> 0:12:07.280 Union workers. 0:12:07.360 --> 0:12:11.800 Actually must literally thirty seconds ago responded on x which 0:12:11.840 --> 0:12:14.000 we will show as soon as we got that in 0:12:14.040 --> 0:12:17.319 a second. To combine all that, please, it's difficult, but 0:12:17.480 --> 0:12:20.360 that news this morning of what was said about EV's 0:12:20.480 --> 0:12:21.640 and unionized work. 0:12:21.720 --> 0:12:23.600 Well we actually heard it in that clip you played 0:12:23.600 --> 0:12:26.480 that that bit about him being a great cutter that 0:12:26.559 --> 0:12:29.800 went on. Trump said, you know, your workers went on 0:12:30.120 --> 0:12:31.840 threatening to go on strike and you just let them go. 0:12:32.160 --> 0:12:35.520 The UAW has already cut an ad about that, And 0:12:35.800 --> 0:12:39.840 of course this could become politically difficult for Trump, who's 0:12:39.840 --> 0:12:43.199 who's trying to cater to working class voters in swing state, 0:12:43.280 --> 0:12:46.520 especially in the Midwest, where where unions definitely hold sway 0:12:46.559 --> 0:12:50.000 and where at times he's seemed to make up some ground. 0:12:50.600 --> 0:12:52.720 And of course it could be an issue for Elon 0:12:52.800 --> 0:12:57.160 Musk because the UAW is trying to unionize electric vehicle 0:12:57.200 --> 0:13:01.120 manufacturers and has signals tension to do so, although it 0:13:01.120 --> 0:13:03.160 doesn't seem like has made a ton of progress yet. 0:13:04.200 --> 0:13:07.360 So we know what we did here around EVS and 0:13:07.440 --> 0:13:10.360 around well, as you said, basically sort of a cozying 0:13:10.440 --> 0:13:12.680 up of mustera Trump. 0:13:13.160 --> 0:13:14.720 What we didn't hear was anything about Krypto. 0:13:15.400 --> 0:13:19.040 Did that sparzy Well, I mean, it's surprising in the 0:13:19.080 --> 0:13:22.520 sense that Elon Musk has kind of expressed affinity with 0:13:22.559 --> 0:13:24.640 the kind of crypto community. There's a lot of overlap 0:13:24.679 --> 0:13:27.360 between fans of Elon Musk and fans of bitcoin. But 0:13:27.480 --> 0:13:29.880 you know, Elon must never been totally a crypto guy. 0:13:29.880 --> 0:13:32.320 He's more somebody who seemed like he has a desire 0:13:32.360 --> 0:13:33.800 to kind of graft himself. 0:13:33.480 --> 0:13:34.959 Onto a popular movement. 0:13:35.760 --> 0:13:38.640 So in that sense, no, But what we did here was, 0:13:38.840 --> 0:13:41.360 you know, kind of a pitch for the boring company 0:13:41.440 --> 0:13:44.760 must tunneling venture, as well as Trump suggesting that he 0:13:44.840 --> 0:13:48.840 might be open to expanding the boring Company's operations, praising 0:13:48.920 --> 0:13:51.720 Musks tunnels in Vegas as well as Ed said this 0:13:51.880 --> 0:13:55.000 kind of more muted praise, kind of almost like backhanded 0:13:55.040 --> 0:13:58.320 compliment for Tesla's cars, Trump saying they're good, but not 0:13:58.360 --> 0:13:59.840 everyone needs an electric vehicle. 0:14:00.960 --> 0:14:04.520 Oh the nuances there all over Elon Inc. As always 0:14:04.600 --> 0:14:07.640 our mix Chaffkin, we thank you, look as we reference 0:14:07.679 --> 0:14:10.360 at the very beginning, though, there were some technical glitches 0:14:10.520 --> 0:14:13.920 during Musk's conversation with Trump last night on xpasis, Mask 0:14:14.000 --> 0:14:17.120 actually blamed the delay on a cyber attack, and he 0:14:17.200 --> 0:14:20.880 didn't provide any evidence, and then went on when the 0:14:20.920 --> 0:14:24.040 event started to sort of suggest that Trump's opponents are responsible. 0:14:24.080 --> 0:14:29.960 Gesticulously, we unfortunately had a massive, distributed anilo service attack 0:14:30.200 --> 0:14:36.120 against our servers. As this massive attack illustrates, there's a 0:14:36.160 --> 0:14:40.880 lot of opposition to people just hearing what President Trump 0:14:40.880 --> 0:14:41.400 has to say. 0:14:42.040 --> 0:14:46.360 It's been an expert Undidos Brian Palmer, CEO of Trellis, Brian, 0:14:46.880 --> 0:14:50.800 did this look feel seem like it was a cyber attack? 0:14:52.040 --> 0:14:55.240 It's possibly a distributed denial of service attack, which is 0:14:55.280 --> 0:14:59.480 a malicious attempt to disrupt the servers. That is one possibility. 0:14:59.520 --> 0:15:02.520 There's a lot of reasons why servers and a system 0:15:02.520 --> 0:15:05.240 could go down. I don't have any insight directly, but 0:15:05.320 --> 0:15:06.280 it is a possibility. 0:15:07.480 --> 0:15:10.320 A senior source at X last night told me that 0:15:10.400 --> 0:15:13.880 it was definitely add US attack, but The Verge reported, 0:15:14.000 --> 0:15:20.560 citing staffers un named staffers, that it was not ADDUS attack. Regardless, 0:15:20.760 --> 0:15:24.320 what did it tell you about the strength or fragility 0:15:25.080 --> 0:15:27.720 of X's security and its systems. 0:15:28.680 --> 0:15:31.320 Yeah, I wouldn't speculate on whether it was or it 0:15:31.360 --> 0:15:33.800 wasn't because I'm not involved in the investigation. What I 0:15:33.800 --> 0:15:37.720 can tell you is that around election time, fifty percent of. 0:15:37.600 --> 0:15:40.160 The world is going to have elections this year. 0:15:40.920 --> 0:15:43.520 What we do know is that distributed denial of service 0:15:43.520 --> 0:15:46.280 attacks are on the rise, and they are used to 0:15:46.320 --> 0:15:50.600 disrupt campaigns. They're used to disrupt elections, So it is plausible. 0:15:51.040 --> 0:15:52.000 Like I said, I don't have. 0:15:51.920 --> 0:15:55.720 Any details on the investigation or why this particular incident. 0:15:55.520 --> 0:15:56.760 Happened at x RAN. 0:15:56.800 --> 0:15:59.520 I'm sure with Trelix, your job is to ensure that 0:16:00.120 --> 0:16:05.359 fight such events, websites, live streams remain impenetrable. 0:16:05.680 --> 0:16:07.720 And I'm interested as to whether this can. 0:16:07.600 --> 0:16:10.000 Be a case because this isn't the first time that 0:16:10.040 --> 0:16:15.560 we've seen some really awkward, embarrassing delays to certain spaces, 0:16:15.680 --> 0:16:17.920 and I'm wondering what could have been done to prevent 0:16:18.360 --> 0:16:22.480 a denal of distribution service attack occurring in this particular way. 0:16:23.280 --> 0:16:27.560 Yeah, Look, these attacks are very serious. They happen at scale. 0:16:27.640 --> 0:16:29.840 They happen a lot of different ways. They can happen 0:16:29.880 --> 0:16:33.440 through volume by just sending so many packets and by 0:16:33.560 --> 0:16:37.560 using botnets and zombies. So these can be very powerful 0:16:37.680 --> 0:16:40.800 and many companies have suffered. We know just recently on 0:16:40.920 --> 0:16:45.320 July thirtieth, the Azure platform suffered at a distributed denial 0:16:45.400 --> 0:16:48.200 service attack and was down for about six hours. 0:16:48.440 --> 0:16:53.120 That impacted the Starbucks app and outlook and Minecraft some 0:16:53.800 --> 0:16:54.600 other things as well. 0:16:54.680 --> 0:16:58.240 So these attacks are pretty sophisticated, especially when they're being 0:16:58.280 --> 0:17:01.080 played out by adversaries very skilled. 0:17:02.040 --> 0:17:06.159 Brian the FBI said that it's investigating allegations made by 0:17:06.200 --> 0:17:10.320 the Trump campaign team about documents access from the campaign 0:17:10.400 --> 0:17:13.679 during attack in the last week or so. Have you 0:17:13.800 --> 0:17:16.280 followed that case study and what do you make of it? 0:17:17.280 --> 0:17:19.639 I followed it. I heard the reports. I think what 0:17:19.680 --> 0:17:21.520 we have to do is let the FBI do their work. 0:17:21.560 --> 0:17:24.280 They've got some great cyber professionals who are going to 0:17:24.320 --> 0:17:25.119 do an investigation. 0:17:25.920 --> 0:17:30.880 Again, we know that in election season, all elections. 0:17:31.240 --> 0:17:33.719 We saw it recently in France there was a distributed 0:17:33.960 --> 0:17:38.359 denial of service attack launched by Russian activists on the 0:17:38.359 --> 0:17:42.040 French government during their election. So this is something that's happening, 0:17:42.480 --> 0:17:45.119 the specific cyber attack that you talked about over the weekend. 0:17:45.400 --> 0:17:48.399 I'll be interested to see what the FBI uncovers in 0:17:48.440 --> 0:17:49.199 their investigation. 0:17:49.680 --> 0:17:53.080 I mean, Brian, we're also fresh in our mind of 0:17:53.119 --> 0:17:55.920 how a lot of our lives and flights got put 0:17:55.960 --> 0:17:59.240 on ice a few fridays ago because of a CrowdStrike issue. 0:18:00.200 --> 0:18:03.080 When that happened, Elon Musk went on to X and said, look, 0:18:03.080 --> 0:18:06.400 he's ditched crowd strike. And I'm interested that you actually 0:18:06.400 --> 0:18:09.960 said at the time, you told Bloomberg that you understand 0:18:10.000 --> 0:18:13.600 why and you'd welcome Tesla CEO as a customer. 0:18:13.960 --> 0:18:16.440 Have you been approached by your musk wanting you. 0:18:16.640 --> 0:18:18.680 I haven't talked to haven't talked to him at all, 0:18:18.720 --> 0:18:22.439 but obviously we're a leader in cybersecurity and if they 0:18:22.480 --> 0:18:25.159 need some help, my offer stance we can do. 0:18:25.359 --> 0:18:28.480 We'll do whatever we can to help. Bad X and Eli. 0:18:29.640 --> 0:18:32.600 Brian Palmer, CEO Trelix, thank you very much. 0:18:40.040 --> 0:18:41.160 Time now for talking tech. 0:18:41.200 --> 0:18:44.920 The first up, well Polish billionaire Afile Roska takes aim 0:18:44.960 --> 0:18:48.400 at deep fakes, holding Meta accountable for fake ads on 0:18:48.440 --> 0:18:49.240 its platform. 0:18:49.320 --> 0:18:50.960 These are the likenesses of famous people. 0:18:51.040 --> 0:18:51.159 Look. 0:18:51.200 --> 0:18:54.160 The founder and CEO of InPost won an injunction last 0:18:54.160 --> 0:18:57.320 week temporarily banning Meta from publishing fake ads using the 0:18:57.440 --> 0:18:59.440 likeness of him and his wife, who's a local TV 0:18:59.520 --> 0:19:03.120 celebrity opponent. Rodka is now waiting on a similar order 0:19:03.119 --> 0:19:07.880 in Europe from Land's Data Protection Commission plus Singapore's c Limited. 0:19:07.960 --> 0:19:10.040 It raises its outlook on e commerce strength. 0:19:10.119 --> 0:19:12.800 The company is actually saying they expect sales of goods 0:19:12.800 --> 0:19:15.680 to rise in the mid twenty percent range, exceeding. 0:19:15.280 --> 0:19:17.159 The high teens they saw in March. 0:19:17.400 --> 0:19:20.960 Second quarter Profit and sales also top anist estaments and 0:19:21.240 --> 0:19:25.360 investors that anxiously awaiting Alphabet's Google Pixel event is happening today. 0:19:25.640 --> 0:19:29.000 The tech giant is set to debut new hardware and software. 0:19:29.240 --> 0:19:31.200 Look traders are hoping that the introduction of a new 0:19:31.240 --> 0:19:34.640 AI features to the redesigned Pixel phones, we could help 0:19:34.720 --> 0:19:36.479 stop what has been a massive sell off. 0:19:36.480 --> 0:19:37.760 It's wiped off three hundred. 0:19:37.560 --> 0:19:40.600 And sixty billion dollars in market value of Google in 0:19:40.640 --> 0:19:42.199 just one month and more on it. 0:19:42.840 --> 0:19:45.320 Yeah, this is worth talking about and thinking about what 0:19:45.320 --> 0:19:47.399 we can expect from the Google Pixel event. Let's get 0:19:47.440 --> 0:19:51.000 to Bloomberg Intelligence and Lissena Rana. We have this pie 0:19:51.040 --> 0:19:53.520 chart and it tells the story of where the Pixel 0:19:53.880 --> 0:19:57.920 or handset sales sit within the biggest, bigger picture over 0:19:57.920 --> 0:20:01.040 the last four quarters. In Frank piannareg the ar they 0:20:01.040 --> 0:20:05.480 are a small percentage of revenue. So why is success 0:20:05.520 --> 0:20:07.360 with the Pixel important? 0:20:08.680 --> 0:20:10.760