Big Tech in Wait-and-See Mode | Bloomberg Technology
ANNOUNCER: THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: NEW YORK AND SAN FRANCISCO BLOOMBERG TECHNOLOGY, WE END THE WEEK IN THE RED. THE TRUMP TRADE INVADES. ED:
ALIBABA REPORTS GROWTH IN INTERNATIONAL AND CLOUD UNITS OFFSETTING WEEK SALES IN THE CHINA E-COMMERCE BUSINESS. -- WEAK SALES. CAROLINE: ALSO SPACEX. WE ARE HAVING A LOWER END TO THE WEEK. THE RISK OFF FOCUS, TRUMP TRADE, EUPHORIA DYING, FED REALITY, BETS FOR A CUT TO 50%. WE ARE ALL 3%, THE WORST WEEK SINCE THE BEGINNING OF SEPTEMBER FOR THE NASDAQ. FOUR DAYS OF LOSSES.
THE WORST SET GOING BACK TO APRIL ON A BACK TO BACK BASIS. BITCOIN MANAGES TO POWER HIGHER ON THE WEEK. SEVEN-DAY VERSION OF THIS. WHAT ARE YOU LOOKING AT ON A MICRO BASIS? ED: BUT HERE AND NOW IS ABOUT TECH EARNINGS. APPLIED MATERIALS, THE BIGGEST U.S. MAKER OF CHIP EQUIPMENT. IT'S GIVEN US A WEAK OUTLOOK. THE STOCK IS DOWN.
ALIBABA, ADR'S SEEING ANEMIC GROWTH IN E-COMMERCE IN CHINA, THE DOMESTIC CORE BUSINESS. WE WILL DIG INTO THAT MORE. EARNINGS IS A STORY AND THE BIG ONE NVIDIA NEXT WEEK. CAROLINE: NOVEMBER 20 AFTER THE MARKET, ALL EYES ON NVIDIA. WE ARE IN BOSTON. REPORTER: TECH IS INTERESTING, IT IS WAIT AND SEE FOR THESE COMPANIES.
THEY ARE STRUGGLING TO PARSE OUT WHAT A SECOND TRUMP ADMINISTRATION WILL DO. TRUMP PERSONALLY DISLIKES META AND ALPHABET. THE REST ARE TREATING FLAT AND THE NASDAQ IS DOWN FOR A FOURTH STRAIGHT DAY. WE ARE SEEING ACTION IN BITCOIN, UP 30% EVER SINCE TRUMP DECLARED VICTORY.
WARREN BUFFETT'S BERKSHIRE HATHAWAY IS ESTABLISHED AND TRACKS NAMES. MICROSTRATEGY TRACKS BITCOIN. THE RATIO SAW ITS HIGHEST LEVEL SINCE 2000. NOT A SURPRISE. MICROSTRATEGY IS UP 400%. BERKSHIRE HATHAWAY IS UP 31%.
WE SAW $6 BILLION FLOW INTO CRYPTO FUNDS. THAT'S A RECORD. ED: THANK YOU VERY MUCH. ALIBABA REPORTING SOLID GROWTH IN BUSINESSES OUTSIDE CHINA.
CLOUD DIVISION, INTERNATIONAL. THAT OFFSET THE DRAG FROM THE ANEMIC CHINESE E-COMMERCE BUSINESS. LONDON HAS BEEN TRACKING THE PRINT. THAT SUMS UP THE STORY. WHAT'S GOING ON IN MAINLAND CHINA WITH THE CONSUMER THAT HAS U.S. LISTED SHARES MOVING DOWNWARDS? REPORTER: THIS IS A RESULT WITH GOOD AND BAD'S. THE BAD PART IS THE LOCAL E-COMMERCE.
THIS IS TWO THIRDS OF ALIBABA REVENUE GENERATION. THIS QUARTER IS ANEMIC. THE REVENUES THEY GENERATE FROM THIRD-PARTY MERCHANTS GREW 2% FOR THE QUARTER. THAT'S NOT THE REBOUND INVESTORS WERE HOPING FOR. DIRECT SALES FROM THE PLATFORM DECLINED. CONSUMER SENTIMENT IN CHINA IS WEAK.
THIS MORNING WE HAVE POSITIVE RETAIL SALES DATA FROM OCTOBER SHOWING THEY EXPANDED 4.8%, FASTEST PACE IN EIGHT MONTHS. TAKE INTO ACCOUNT, THESE RESULTS CAME BETWEEN JUNE AND SEPTEMBER. DURING THEN, CONSUMER SENTIMENT IS NOT ON THE MEND YET. CAROLINE: INTERNATIONAL GROWTH. , HOW RESILIENT IN THE FACE OF GEOPOLITICAL HEADWINDS, DOMINANTLY IN THE U.S., ANTICIPATING A NEW ADMINISTRATION WHICH IS NOT CHINA FRIENDLYZ/ --? HENRY: THE DOMESTIC E-COMMERCE BUSINESS HAS BEEN WEAK FOR QUARTERS AND QUARTERS. THEY HAVE TO FIND A NEW GROWTH
ENGINE. IT USED TO BE CLOUD BUT THAT IS SPUTTERING FOR SEVERAL QUARTERS IN A ROW NOW. IT HAS SHOWN SIGNS OF RECOVERY BUT A LONG WAY TO GO.
ANOTHER WAY TO EXPAND HIS OVERSEAS. EXPLOSIVE GROWTH IN THE U.S. ALIBABA, THE FOCUS HAS BEEN ON OTHER ASIAN MARKETS, MALAYSIA, INDONESIA. THEY HAVE BEEN DOING WELL. ALIBABA IS STILL BURNING CASH IN THOSE MARKETS. PAST QUARTER, THEY ARE
NARROWING LOSSES. THE MARGINS HAVE BEEN IMPROVING. IT IS SOME DISTANCE AWAY FROM BREAKEVEN. CAROLINE: HENRY REN, THANK YOU. SPACEX IS PREPARING A TENDER OFFER IN DECEMBER, $250 BILLION VALUATION. THAT'S NEXT. ♪ ED: SPACEX IS LAUNCHING A TENDER OFFER IN DECEMBER THAT WILL SELL EXISTING SHARES AT $135 EACH ACCORDING TO A REPORT IN FINANCIAL TIMES WHERE THEY CITED SOURCES.
BRUCE, THE BASICS. A TENDER IS WHERE EARLY INVESTORS SELL SHARES. THERE IS NO NEW CAPITAL RAISE. THE MAIN POINT IS A VALUATION $250 BILLION OR MORE QUITE I WATERING -- EYE WATERING. BRUCE: TYPICALLY SPACEX DOES THESE TOYS HERE. -- TWICE A YEAR. THE PREVIOUS VALUATION WAS $210 BILLION. 250 IS A BIG JUMP.
IT'S NOT A RECORD FOR A STARTUP. THE RECORD IS $268 BILLION PER BYTEDANCE, THE CHINESE PARENT OF TIKTOK. ONE YEAR AGO, THE VALUATION WAS $180 BILLION. CAROLINE:
FEELS FOR SOME THE VALUATION GOES HIGHER, MAYBE IT GETS A TRUMP-MUSK BUMP. CONSIDERABLE EASE WITH WHICH HE WILL GET BETTER REGULATORY APPROVALS WHEN HE'S ASSOCIATED WITH THE NEXT ADMINISTRATION, THE PRESIDENT OF SPACEX IS TALKING ABOUT THAT VERY THING THIS MORNING. BRUCE: ELON MUSK DOES HAVE THE EAR OF TRUMP. THIS IS MORE THAN A POLITICS STORY. STARLINK HAS 6000 SATELLITES IN
OPERATION. THE COMPANY HAS LAUNCHED 7000 SATELLITES. THIS PUTS STARLINK AHEAD OF ANY COMPETITOR. THEY ARE THE DOMINANT PLAYER FOR NOW IN LOW-EARTH ORBIT SATELLITE COMMUNICATION.
ED: THE FOCUS ON SPACEX IS ABOUT REUSABILITY. THE FALCON CAN GO UP AND COME BACK DOWN AND BE USED AGAIN. WHAT DID THEY SAY ABOUT STARSHIP? BRUCE: THERE WILL BE ANOTHER TEST SOON. WE SHOULD EXPECT THAT TUESDAY
NEXT WEEK. THIS WOULD BE THE LATEST TEST. STARSHIP IS A LEVEL BIGGER THAN ANYTHING THAT HAS EXISTED UNTIL NOW. IN THE COMMENTS, SHE SAID THE COMPANY EXPECTS TO LAUNCH DIRECT TO CELL SERVICE BY THE END OF THE YEAR.
THAT WOULD PUT SPACEX OUT FRONT IN ANOTHER BUSINESS JUST GETTING STARTED, OFFERING SATELLITE-BASED COMMUNICATION THAT CAN GO DIRECTLY TO PHONES WITHOUT HAVING ANY SATELLITE DISH OR EQUIPMENT. CAROLINE: 400 STARSHIP LAUNCH AS POSSIBLE IN THE NEXT FOUR YEARS. EXTRAORDINARY ON THE VALUATION AND AMOUNT OF LAUNCHES. THANK YOU. TESLA SEEING A REACTION ALONGSIDE OTHER EV MAKERS.
YESTERDAY A REPORT HIT FROM REUTERS SAYING DONALD TRUMP IS SET TO END SOME TAX CREDITS. TERRY, WHEN YOU GET AN EV, YOU CAN GET A NICE JUICY CREDIT. THAT WOULD BE WIPED OUT POTENTIALLY BY THE NEXT ADMINISTRATION. HOW INTEGRAL IS THAT CREDIT TO DEMAND? TERRY: IT'S NOT CLEAR. IT'S IMPORTANT. THIS VALUABLE TO THE INDUSTRY.
IT'S IMPORTANT BECAUSE OF CONSUMERS RELYING ON IT AND MANUFACTURERS RELYING ON IT. IT'S ABOUT EV JOBS. THE CURRENT INCENTIVE IS AVAILABLE TO AMERICAN-MADE VEHICLES. WE ARE TALKING ABOUT MANUFACTURING IN U.S. THIS IS A SURPRISE. THE LAST TIME THIS PERSONAL TAX CREDIT WAS CHALLENGED, IT HAD A LOT OF SUPPORT IN CONGRESS FROM STATES MANUFACTURING COMPONENTS FOR EV'S LIKE TENNESSEE AND SOUTH CAROLINA AND MICHIGAN AND ILLINOIS. THEY WANTED TO PROTECT JOBS AND PROTECTED THE CREDIT LAST TIME.
WE WILL SEE HOW THIS GOES IN CONGRESS. CAROLINE: MANY OF THOSE STATES NOT BLUE STATES, THEREFORE AFFECTING HOME TERRITORY. YOUR BUSINESS, THE INFRASTRUCTURE PLAY, DOES THIS SETBACK ADOPTION LONG-TERM? IT'S HYPOSTASIS. DOES THAT MAKE YOU THINK ABOUT READJUSTING STRATEGY? TERRY: IT HAS THAT POTENTIAL. WE RELY ON DEMAND FROM CONSUMERS AND BUSINESSES. THIS IS A PERSONAL TAX CREDIT FOR INDIVIDUALS. THERE ARE INCENTIVES THAT ARE
ON THE CHOPPING BLOCK FROM THIS ADMINISTRATION. THERE'S AN IMPORTANT FIGHT TO PROTECT INCENTIVES NOW. ED: YOU SAID THIS IS A SURPRISE. IS IT REALLY? ELON MUSK HAVE BEEN TALKING ABOUT SCRAPPING SUBSIDIES FOR YEARS. HE'S BEEN CLOSE TO TRUMP THROUGHOUT THE ELECTION PROCESS. NOW IN AN ADVISORY ROLE. HE WILL HAVE TRUMP'S EAR. WE HAVE DECELERATING EV SALES
GROWTH ANYWAY FOR THE LATTER PART OF BIDENS ADMINISTRATION. WHY IS IT A SURPRISE? TERRY: DECELERATION WAS GOING TO HAPPEN. GROWING YEAR-OVER-YEAR AT DOUBLE DIGITS YOU CANNOT CONTINUE FOREVER. THE LAW OF NUMBERS DOES NOT ALLOW IT.
THIS INCENTIVE HAS BROUGHT SUPPORT. THAT IS WHY IT IS A SURPRISE. TO SEE THIS SO EARLY IN THE TRANSITION IS SURPRISING. THIS IS NOT A SIGNIFICANT TAX CREDIT. THE RANGE OF NEW TAX POLICY WE WILL SEE OUT OF THIS ADMINISTRATION, IT FAVORS U.S.
MANUFACTURING. THIS NEW ADMINISTRATION HAS BEEN SAYING IT'S WHAT THEY REALLY WANT. THEY ARE LOOKING FOR MANUFACTURING. THIS IS SOMETHING THAT DOES THAT. ED: I HAVE A MODEL Y. CAROLINE HAS ONE. I LEAST IT. IT WAS COMPETITIVE. WHAT IS GOING TO PUT EV SALES IN NORTH AMERICA BACK ON A PATH TO ACCELERATING SALES GROWTH? WHAT DO YOU WANT TO SEE PROACTIVELY THE TRUMP ADMINISTRATION DO? TERRY: CALIFORNIA HAS THE RIGHT TO REGULATE TAILPIPE EMISSIONS.
A DOZEN OTHER STATES HAVE SIGNED ON. THEY HAVE REGULATIONS FORTHCOMING THAT ARE AFFECTING PLEATS. PLEATS WOULD BE FLEETS -- FLEETS WOULD BE REQUIRED TO GET EV'S. MANUFACTURERS WOULD BE REQUIRED TO SELL TO THEM. THAT IS IN JEOPARDY. OVERALL CALIFORNIA'S RIGHT TO REGULATE TAILPIPE EMISSIONS IS WHAT CREATED THE EV INDUSTRY IN THE FIRST PLACE. WE THINK WE CAN COMPETE ON EQUAL FOOTING WITH GAS AND DIESEL TODAY.
MY CUSTOMERS LIKE PEPSI, FEDEX, UPS AND SCHOOL DISTRICTS ARE SAVING MONEY GOING TO ELECTRIC BECAUSE IT IS CHEAPER THAN GAS/DIESEL OVERALL OPERATING COSTS. IT'S IMPORTANT TO HAVE REGULATIONS IN PLACE TO GET OVER THE HUMP OF THESE PILOT PROGRAMS AND ENABLE IT TO GO SCALE. CAROLINE: MAKES ME THINK WHY HAVE THEM IF ALREADY YOU ARE ABLE TO COMPETE? THEREIN LIES THE ARGUMENT. GOING BACK TO THE CONSUMER, IS IT YOU NEED TO COMPETE BY WHAT YOU DO? MANY ARE RETICENT TO COMMIT FULLY TO AN EV. THEY HAVE BEEN GOING TO HYBRIDS. THEY ARE WORRIED ABOUT A LACK THEREOF INFRASTRUCTURE. TERRY: THAT'S THE TRICK.
COMMITTING CAPITAL TO BUILD OUT INDUSTRY IS RISKY. REGULATIONS PROVIDE GUARDRAILS FOR INVESTMENT. TO PRIVATE INVESTMENT IN CREATES JOBS.
THAT'S WHAT THIS IS ABOUT. NOT THE FAVORING ONE INDUSTRY OVER ANOTHER BUT GIVING ENOUGH CERTAINTY TO INVESTORS THAT THEY CAN PUT CAPITAL INTO THE SPACE TO CONTINUE TO GROW THE CHARGING INFRASTRUCTURE, CONVERT THEIR FLEETS AND DO THE THINGS WE WANT TO DO. ED: PRESIDENT-ELECT TRUMP'S POINT IS NOT THAT HE IS ANTI-EV BUT HE IS NOT FULLY IN.
HE WANTS CHOICE. TERRY O'DAY THANK YOU. WE WILL DISCUSS THE DEPARTMENT OF GOVERNMENT EFFICIENCY WITH JENNIFER. THERE'S A LOT TO DISCUSS ON DOGE. ♪ >> WE ARE JUST GETTING STARTED. THE THING I REMEMBER ABOUT LAST
WEEK, WHEN DONALD TRUMP WAS IN THIS ROOM EVERYONE WAS CELEBRATING. HE WAS READY FOR THE NEXT STEP. I WANT TO THANK HIM FOR MAKING SURE ELON MUSK AND I ARE IN A POSITION TO CONDUCT A MASS DEPORTATION OF BUREAUCRATS OUT OF THE D.C. BUREAUCRACY. ELON BRINGS A CHAINSAW. WE WILL BE TAKING IT TO THAT THE RUCKUS HE. IT'S GOING TO BE FUN.
CAROLINE: HE WAS RECENTLY CHOSEN BY PRESIDENT-ELECT TRUMP TO CO-LEAD DOGE TO CUT EXCESS REGULATION AND EXPENSES. JENNIFER, SORRY, IT'S A FRIDAY. YOU HAVE GOT INSIDE KNOWLEDGE ON HOW EASY OR HARD IT IS TO AFFECT POLICY CHANGE WITHIN A CIVIL SERVICE THAT ALREADY EXISTS HE SAID IT WOULD BE FUN TO TAKE A CHAINSAW TO IT.
FOR MANY WHO WORK THERE, THIS WILL NOT BE FUN. DO YOU AGREE IN PRINCIPLE EFFICIENCY NEEDS TO BE FOUND? JENNIFER: GOVERNMENT HAS TO GET BETTER AT DOING WHAT WE SAY WE WILL DO AND OUR INABILITY TO DO THAT HAS CREATED THE OPENING FOR THIS DOGE AND OTHER INITIATIVES OUT OF THE TRUMP WHITE HOUSE. SO MANY QUESTIONS. SIGNIFICANT CONFLUENCE OF INTERESTS, ESPECIALLY ELON MUSK. THEY ESTABLISHED THIS OUTSIDE OF GOVERNMENT.
IT'S UNCLEAR IF THEY INTEND TO RELY ON EXECUTIVE ACTION OR GO WITH CONGRESS. THERE ARE QUESTIONS WHETHER THEY CAN BE EFFECTIVE. THERE'S A PROBLEM BEHIND THIS RHETORIC THAT NEEDS TO BE HANDLED WITH MORE CARE THAN THE WAY ELON MUSK AND RAMASWAMY ARE TALKING ABOUT IT. CAROLINE: WE'VE BEEN TRYING TO MAKE GOVERNMENT EFFICIENT FOR A WHILE. ARE WE AT THE LEVEL NOW THIS DECISION NOT TO CARE, NOT TO BE PRECISE, BUT TO GO AT IT WITH A CHAINSAW, EVERY OTHER SOCIAL SECURITY NUMBER IS OUT, IS THAT THE PLACE WE'VE GOT OURSELVES TO? JENNIFER: I DON'T THINK IT HAS TO BE. GOOD ANALOGY MIGHT BE BRUSH FIRES.
I LIVE PART TIME IN CALIFORNIA. VERY HIGH FIRE RISK AREA. I WAS TOLD WHEN WE MOVED THERE, WHEN NATIVES OWNED THE LANDS, THERE WERE 15 TREES PER ACRE. NOW THERE IS 1500. THE FIRES ARE BIGGER. WE CAN DO FIRE MANAGEMENT NOW. WE'VE LEARNED A LOT. WE CAN MITIGATE THE WORST DAMAGE. WHEN YOU HAVEN'T CLEARED IT OUT FOR MANY YEARS, THAT'S UNFORTUNATE WHAT HAS HAPPENED IN GOVERNMENT, WE HAVEN'T, THEN WE GET CONFLAGRATIONS THAT BURN OUT OF CONTROL. I HOPE WE CAN STOP THAT.
WE WILL HAVE SOME BURNING. SOME WILL BE HEALTHY OVER THE LONG RUN. IT'S A DIFFICULT SITUATION TO BE IN. PUBLIC SERVANTS WHO FEEL NERVOUS HAVE A RIGHT TO BE. ED: WE HEARD FROM RAMASWAMY. I HAD AN EXCHANGE WITH HIM ON X
YESTERDAY. HI FLAGGED THE IDEA INVESTORS ARE SELLING OUT COMPANIES THAT ARE HISTORICALLY CONTRACTORS TO THE GOVERNMENT FOR A REASON. THEY THINK MR. RAMASWAMY WHO CALLS UNCLE SAM NOT SUPPOSED TO BE UNCLE SUCKER, THEY THINK HE WILL BE SUCCESSFUL. OUTLINE THE REALITY OF DOING THAT.
CANCELING LONG-TERM CONTRACTS. ULTIMATELY REDUCING HEADCOUNT AT GOVERNMENT AGENCIES, BASED ON YOUR EXPERIENCE WORKING WITHIN IT. JENNIFER: IF WE DO THAT THERE WILL BE DAMAGE. IN ALL SORTS OF WAYS. THERE WILL BE DAMAGE TO OUR ABILITY TO PROTECT OUR NUCLEAR ARSENAL. THE FIFTH RISK. IT WILL CHILL YOUR BONES. WE DON'T WANT THAT. ON THE OTHER HAND, WE NEED SOME CHANGES. WHEN WE DO THOSE, WE NEED TO BE
THOUGHTFUL ABOUT PRESERVING THE FOUNDATIONS THIS COUNTRY IS BUILT ON. THIS IS NOT THE DOGE PROPOSAL BUT LOOK AT THE SCHEDULE LEFT PROPOSAL. IT'S NOT ADDRESSING THE REAL PROBLEMS. IT'S GOING UP THE CORE PRINCIPLES OF AN
INDEPENDENT CIVIL SERVICE ABLE TO TELL THE TRUTH, THAT IS HIRED AND FIRED ON THE BASIS OF MERIT. WE NEED REAL CIVIL SERVICE REFORM, NOT SCHEDULE F. ED: JENNIFER, APPRECIATE YOUR TIME. CAROLINE: WE WILL DISCUSS TSMC. IT WILL GET $6 BILLION IN GRANTS FROM THE BIDEN ADMINISTRATION TO BRING PRODUCTION TO THE U.S.
WE KNEW IT HAD BEEN SIGNED, NOW IT IS SEALED AND DELIVERED. THIS IS BLOOMBERG. ♪ CAROLINE: WELCOME BACK. ED: WHAT'S GOING ON? CAROLINE:
RISK OFF. FUNDAMENTALS. THE EUPHORIA EASE. REFOCUSED ON THE OTHER GUY. JAY POWELL, THE MARKET PARING BACK HOW LIKELY A CUT IS FOR DECEMBER. WE ARE OFF 3%. JARRING MOVE. WORST WEEK FOR THE NASDAQ 100 SINCE SEPTEMBER. PAIN TRADE. INDIVIDUAL MOVERS. BACK TO FUNDAMENTALS ON EARNINGS. THE CHIPMAKERS.
TESLA UP 4%, THE ONLY MAG SEVEN ON THE HIGHER SIDE. THE REST OF THE MAG PULLING DOWN. THAT'S A RELIEF RALLY AFTER YESTERDAY'S SELLOFF ON THE BACK OF EV NEWS. APPLIED MATERIALS DOWN. THIS IS A CHIP EQUIPMENT MAKER, THE U.S. VERSION. SIGNALING PERHAPS EVERYTHING IS NOT ROSY IN CHIP LAND. WE ARE THINKING AUTOS AND CHINA. WHAT DOES THIS MEAN FOR NVIDIA
NOVEMBER 20? WHAT ARE YOU LOOKING AT? ED: IAN KING IS HERE WITH US. APPLIED MATERIALS IS INTERESTING. THE BIGGER MARKET, OVER THE ACTION AND EARNINGS. APPLIED MATERIALS IS AMERICA'S BIGGEST CHIP EQUIPMENT MAKER.
ANYTHING CONSISTENT WITH ASML, THE BIG THEMES ABOUT AI INVESTMENT AND CUTTING-EDGE MACHINES, CHINA OR ANYTHING? IAN: 100% CONSISTENT. SPOKE WITH THE CEO AFTER THE RELEASE. HE'S LIKE EVERYTHING'S OK. NOTHING TO WORRY ABOUT. LONG-TERM FANTASTIC. NOT GOING TO WORRY ABOUT THE ODD FLUCTUATION. UNFORTUNATELY, INVESTORS ARE. YOU HAVE TO BE PERFECT WITH THE
AMOUNT OF MONEY PUT INTO THESE AND THE EXPECTATIONS THAT EXIST. OUTPERFORMANCE IS THE ONLY PERFORMANCE. CAROLINE: WELL SAID. PRIOR ON THE YEAR THEY HAD BEEN UP 15%. NOW 5%. THE READ CROSS IS IMPORTANT. WE ARE UP ASSESSING ABOUT NVIDIA NEXT WEEK. THIS IS YOUR MAIN COMPANY YOU FOCUS ON. WHAT DOES IT MEAN FOR NVIDIA? IAN: AI AI AI. WE'VE HEARD POSITIVE.
THE ONLY THING THAT WILL HOLD THEM BACK IS AVAILABILITY OF SUPPLY. CAN THEY GET ENOUGH CHIPS TO MEET DEMAND? THE FUNDAMENTALS, THE SELLTHROUGH, THE CAPEX PLANNED IS POSITIVE. ED: WE REPORTED TSMC IS FINALIZING AWARDS FROM THE U.S. GOVERNMENT THROUGH THE CHIPS ACT. IAN:
IT'S NOW A CONTRACT BETWEEN THE U.S. AND TSMC. IT MAKES GOING BACK HARDER. THEY'VE ALREADY ACHIEVED THINGS THEY WERE SUPPOSED TO DO. $1 BILLION FEDERAL MONEY THIS YEAR. IN GENERAL IT'S POSITIVE. IT'S MOVING THE BUILD FORWARD AHEAD OF THE HAND OVER. ED: THANK YOU. CAROLINE:
STICKING WITH TIPS, TIME FOR TALKING TECH. SAMSUNG RISING. THEY'VE BEEN UP IN THE SOUTH KOREAN TRADE BECAUSE THEY ARE SURPRISING INVESTORS WITH A BUYBACK OF $7 BILLION WORTH OF ITS OWN STOCK IN THE NEXT YEAR. THE GROWTH IN THE MEMORY CHIP BUSINESS HAS BEEN LACKLUSTER AND STRUGGLING TO KEEP UP. ELON MUSK IS WRAPPING UP HIS FEUD WITH SAM ALTMAN.
HE ALLEGED OPENAI IS TRYING TO CORNER THE MARKET AND SACRIFICING SAFETY. OPENAI DIDN'T IMMEDIATELY RESPOND. THE ULTIMATE FIGHTING CHAMPIONSHIP WILL BE LOOKING FOR A DECADE-LONG PARTNERSHIP WHEN IT SHOPS MEDIA RIGHTS NEXT YEAR ACCORDING TO DANA WHITE.
HE SPOKE ABOUT HIS RELATIONSHIP WITH PRESIDENT-ELECT TRUMP. >> WHEN WE FIRST BOUGHT THE COMPANY AND VENUES DIDN'T LOVE THE UFC THEN, HE OPENED UP THE TAJ IN NEW JERSEY AND WE DID OUR FIRST COUPLE EVENTS THERE. HE SHOWED UP FOR THE FIRST ONE AND STAYED UNTIL THE LAST FIGHT. ROMAIN:
ANY PLANES TO WORK FOR HIM. DANA: NO I DO NOT KNOW. ED: LET'S STAY IN THE REALM OF FIGHTING AND SPORTS. NETFLIX DOWN TO PRESENT. TONIGHT IS THE BIG FIGHT.
STREAMED EXCLUSIVELY ON NETFLIX. JAKE PAUL-MIKE TYSON. IT'S BEEN ALL OVER MY SOCIAL FEEDS. INTERESTING MOMENT FOR NETFLIX. THERE HE IS AND THERE HE IS. WE CAN DISCUSS MONDAY. COMING UP, BUSINESS LEADERS AROUND THE WORLD ARE GATHERED IN LIMA FOR THE APEX CEO SUMMIT. ♪
TECHNOLOGY PODCAST ON THE TERMINAL, ONLINE, APPLE, SPOTIFY, I HEART. THIS IS BLOOMBERG. ♪ CAROLINE: APEX CEO SUMMIT UNDERWAY IN LIMA. GLOBAL BUSINESS LEADERS GATHER TO DISCUSS THE LATEST. LISA
ABRAMOWICZ SAT DOWN WITH GOOGLE'S VP OF AFFAIRS. >> THE CONVERSATION, I'VE BEEN MEETING WITH FOREIGN OFFICIALS, MOSTLY ABOUT HOW CAN THEY GET THE BENEFITS OF THIS AMAZING NEW TECH REVOLUTION HAPPENING AROUND AI? THEY WANT TO HEAR ABOUT WHAT CAN THEY BE DOING IN TERMS OF BUILDING INFRASTRUCTURE, SKILLING PEOPLE? THERE'S AN AWARENESS GEOPOLITICS IMPACTS THE TECH SECTOR AS WELL AS EVERYTHING ELSE HEARD. INTERESTING TO SEE HOW MUCH APPETITE THERE IS AROUND GETTING THAT EDGE. LISA: WHY IS IT IMPORTANT FOR GOOGLE TO BE HEAVILY INVESTED IN AREAS LIKE LATIN AMERICA AND SOUTHEAST ASIA? KARAN: IT STARTS WITH OUR MISSION. ORGANIZE THE WORLD'S
INFORMATION AND MAKE IT UNIVERSALLY ACCESSIBLE AND USEFUL. THE UNIVERSAL PART IS CORE. A RECOGNITION GOOGLE IS NOT FULFILLING ITS MISSION IF WE ARE NOT OPERATING IN PLACES LIKE LATIN AMERICA/SOUTHEAST ASIA/EAST ASIA. PART OF IT HAS TO DO WITH WHAT IT IS WE DO EVERY DAY. AS TECH AND BUSINESS EXPANDS, THESE REGIONS BECOME MORE IMPORTANT.
YOU CANNOT LOOK AT THE GROWTH HAPPENING IN EAST ASIA, LATIN AMERICA MARKETS DOING VERY WELL AND NOT BE LEVERAGED. ED: LET'S GET OUT TO PERU AND BRING IN LISA WHO HAS BEEN THERE A FEW DAYS AND WHAT IS NOTABLE IS THE PRESENCE OF BIG TECH. WHAT WERE THEY DOING THEIR? -- THERE? LISA: NOTABLE THE BIG TECH WERE HERE. SO MANY U.S. COMPANIES WERE ABSENT. WE SAW BIG TECH, ENERGY, JP
MORGAN. OTHER THAN THAT, U.S. COMPANIES WERE MORE ON THE SIDELINES AND CHINESE COMPANIES WERE PRESENT. BIG TECH WANTS TO MAKE SURE THEY GET THEIR FOOTPRINT AS EVERYONE CLAMORS FOR THE AI BEDROCK PEOPLE THINK WELL ESTABLISHED THE NEXT GENERATION OF BUSINESS. HOW CAN THEY DO THAT WHEN REGULATORY REGIMES ARE NOT SET? THAT WAS THE EXISTENTIAL X.
HOW DO YOU DEAL WITH THE FACT PRESIDENT-ELECT TRUMP WILL HAVE DIFFERENT POLICIES THEN PRESIDENT BIDEN? WE DON'T HAVE A SENSE OF WHAT COUNTS AS NATIONAL SECURITY. CAROLINE: TRUE. WE HEARD FROM XI JINPING. THE CHINESE NARRATIVE SAYING LET'S NOT BACKTRACK. LET'S STICK TO A GLOBAL ECONOMY. HOW MUCH DO YOU TAKE THAT AT FACE VALUE? HOW ARE COMPANIES ABLE TO INVEST? LISA: GOOD QUESTION. THEY LOOK AT WHERE THEY CAN AND WHAT THEY KNOW.
COMPANIES HAVE MADE INROADS, BIG TECH IS LOOKING FOR COUNTRIES THAT HAVE ENERGY INFRASTRUCTURE. A PLACE LIKE THIS WHICH HAS COPPER AND LITHIUM AND NATURAL RENEWABLE ENERGY SOURCES, THAT'S APPEALING. LARGER SCALE, THERE'S HESITANCE TO INVEST IN CERTAIN SECTORS. MAYBE WHY YOU ARE NOT SEEING CONSUMER FACING SECTORS LIKE RETAIL COMING DOWN HERE.
HOW DO YOU INVEST IN A TIME OF CHANGE? CAREFULLY. THAT'S WHAT PEOPLE ARE SAYING. SELECT INDUSTRIES AND OTHERWISE THERE IS A PARALYSIS AS PEOPLE TRY AND FIGURE OUT WHAT IS NEXT.
CAROLINE: GREAT CONVERSATIONS, KEY AMONG THEM JAMIE DIMON. SO MUCH TO UNPACK ON THE U.S. ELECTION IN TERMS OF GEOPOLITICS. FROM A VENTURE-CAPITAL STANDPOINT, AI, TAXES, LET'S GET TO IT. THE RACE BETWEEN U.S. AND CHINA. LET'S DISCUSS. YOU'VE BUILT BUSINESSES YOURSELF. I'M INTERESTED HOW MUCH YOU ARE PUTTING YOUR MIND TO THE FUTURE OF U.S.-CHINA RELATIONS? U.S.-GLOBAL RELATIONS AT THIS
POINT? >> GOOD MORNING. GOOD TO SEE YOU. INTERESTING TIME. IF YOU LOOK AT THE TECH AND VENTURE ACTIVITIES, EVERYTHING IS AI DRIVEN.
I'M LIKE THE PLUMBER OF SILICON VALLEY, TRYING TO MEND THE INFRASTRUCTURE, THE CRITICAL PIECES THAT ENABLE ENTERPRISE APPLICATIONS TO HAVE A NEURAL NETWORK INSIDE AND BE SMART AND EFFICIENT AND EXTRAORDINARILY EFFICIENT. THE CHINA AND U.S. PART -- THE WAY WE TRAIN THE DATA FOR THE LARGE MODELS, WE ARE NOT COMPLETELY SEPARATED. THERE'S A MODEL FOR CHINA. THERE'S A DIFFERENT MODEL FOR WHAT WE ARE DOING IN THE U.S. A LOT OF IT HAS TO DO WITH HISTORY.
WE HAVE SYSTEMS WE'VE BEEN PREPARING FOR THE PAST DECADE. GREAT PREPARATION, ORGANIZING THE DATA, TO MAKE THE COMPUTER FEEL LIKE HUMAN. THE U.S. HAS A HUGE A VANTAGE. -- ADVANTAGE IN TIME. CAROLINE: THE SUPPLY CHAIN. YOU TALK ABOUT EFFICIENCY BUILT IN IN THE U.S. WE POTENTIALLY SEE TARIFFS. A LOT OF THINGS ARE IMPORTED EVEN AT THE MOST HIGH-END TECHNOLOGICAL ELEMENT. WILL THAT PUT PAINS TO
EFFICIENCY IN THE U.S.? ALFRED: THERE WAS ALREADY PAIN. MORE PAIN TO THE PEOPLE NOT ALLOWED TO BE IMPORTING STUFFER NVIDIA. SUPPLY CHAIN IS NOT LIKE WHAT IT USED TO BE BEFORE COVID. WE HAD TO SLOW DOWN. WE ARE STILL BEHIND IN THIS COUNTRY. WE ARE DEPENDENT ON TAIWAN. THIS CODEPENDENCY BETWEEN COUNTRIES -- I HAVE GREAT HOPE, THE GREAT REASONS TO CONTINUE TO PROGRESS MANKIND, WE DON'T STOP. WHICH I DON'T THINK WE DO.
ED: THE ENVIRONMENT. THIS WEEK, MY COLLEAGUES REPORTED DATA BRICKS IS DOING A TENDER FOR EMPLOYEE LIQUIDITY. THERE ARE SIGNS THINGS ARE HAPPENING WHETHER THE IPO MARKET, DIFFERENT EXITS THROUGH M&A. WHAT HAPPENS NEXT UNDER A TRUMP ADMINISTRATION FOR YOUR PORTFOLIO COMPANIES AND'S LOOKING FOR AN EXIT? -- AND VC'S LOOKING FOR AN EXIT? ALFRED: GOOD TO SEE YOU.
DATA BRICKS IS THE MOST EXCITING AND FASTEST GROWING LARGE ENTERPRISE TECH COMPANY, RUN BY PROBABLY THE BEST CEO EVER BEEN ENTERPRISE TECH. THEY ARE UNIQUE. WHATEVER THEY DO IN FUNDRAISING IS THEIR CHOICE THEY DECIDED NOT TO GO TO THE PUBLIC MARKETS. THEY ARE MORE THAN QUALIFIED TO DO SO. THAT IS CHOICE. THAT CHOICE COMES FROM, IN THE PAST 10 DAYS, HOW WE FEEL WITH FOUNDERS IN THE VALLEY. WE ARE GOING THROUGH A REBOOT. THE PROCESS WILL LIKELY HAVE A CHANCE TO LOOK AT HOW SEC, FTC, CFPB, HOW THEY CONDUCT BUSINESS ON POLICIES? ARE THEY GOING TO REGULATE AI? OTHER CRYPTO'S? OTHER THINGS? WE WERE STUCK FOR THE LAST THREE YEARS IN A PLACE WHERE IT IS DIFFICULT TO GET ANYTHING DONE FROM THAT PERSPECTIVE. VERY LITTLE IPO AND M&A.
THERE'S A LOT OF NEW. THE NEW ADMINISTRATION WON'T START UNTIL JANUARY 20. WHAT ARE THEY GOING TO DO DIFFERENTLY TO REENABLE THIS ABILITY TO DO THESE THINGS? I AM OPTIMISTIC. NEXT YEAR WILL BE UNREAL FOR INNOVATION AND VENTURE DEPLOYING CAPITAL.
ED: THE NEXT AREA OF GROWTH FOR YOU? ALFRED: SORRY? ED: WHERE ARE YOU LOOKING NOW? ALFRED: WITHOUT A DOUBT, HEY ENABLE ENTERPRISE APPLICATIONS. LET'S GET 100% EFFICIENCY ON EVERY INDIVIDUAL USING ENTERPRISE COMPUTING. ED: THAT WAS 10 SECONDS. ALFRED: THANK YOU. ED: THANK YOU VERY MUCH.
COMING UP, BIG NEWS FROM PLANT PROTEIN MANUFACTURER PLANTABLE. ♪ ED: PLANTABLE HAS HARNESSED PLANTS TO MANUFACTURE THE RUBY PROTEIN WHICH COMES FROM DUCKWEED. NOW THEY ARE LOOKING TO GROW THE POPULARITY OF THE PRODUCT. TONY WELCOME. ALSO KNOWN AS WATER LENTILS, DUCKWEED, I DON'T KNOW WHERE TO START OTHER THAN YOU HAVE SPECIFIC TECHNOLOGY THAT HAS MADE SOMETHING OTHERS HAVE TRIED, A SUCCESS. TONY:
WE TRY TO WORK BACKWARDS FROM WITH THE FOOD INDUSTRY NEEDS. WE'VE SEEN THEM BEING OVERWHELMED WITH SYNTHETIC, UNHEALTHY INGREDIENTS. WE STARTED TO LOOK FOR A NATURAL SUCCESSOR TO THESE UNHEALTHY INGREDIENTS. WE FOUND AN ENZYME WHICH IS ONE OF THE MOST ABUNDANT PROTEINS ON THE PLANET AND MILLIONS ARE CONSUMING IT ON A DAILY BASIS BECAUSE THEY ARE PRESENT IN EVERY LEAFY GREEN. WE LOOKED FOR THE MOST COST EFFICIENT AND ENVIRONMENTALLY FRIENDLY WAY OF SCALING. THIS AQUATIC PLANT, WATER
LENTILS. ED: WHY DO YOU NEED $30 MILLION? TONY: WE'VE BUILT OUT OUR FIRST COMMERCIAL MANUFACTURING MODULE IN WEST TEXAS. WE STARTED TO FULFILL THE COMMERCIAL DEMAND IN THE MARKET. WE ARE NOT ABLE TO KEEP UP WITH THE DEMAND.
WE NEED $30 MILLION TO EXPAND OUR INDEXES TO FULFILL THE DEMAND. CAROLINE: AM I EATING THIS NOW? IS IT AVAILABLE? TONY: IT IS. THERE ARE PRODUCTS ON THE MARKET THAT CONTAIN OUR PRODUCT AT THE MOMENT. ABSOLUTELY. CAROLINE: WHERE ARE YOU IN GENERAL APPROVALS ON FDA AND FOOD SCIENCE AUTHORITY? TONY: AT THE MOMENT WE ARE SELF AFFIRMED, WORKING WITH THE FDA TO GET THE FINAL LETTER OF NO QUESTIONS FROM THEIR SIDE. WE'RE WORKING ON A FORMAL APPROVAL FROM THE EUROPEAN FOOD SAFETY AUTHORITY WHICH WE HOPE TO GET BY THE '26. CAROLINE:
WHAT'S IT LIKE IN THE WORLD OF RAISING CAPITAL FOR FOOD TECH? TONY: IT'S MISOGYNISTIC -- WE'VE BEEN WORKING TO PROPEL THE COMPANY FORWARD, SHOW UP AND SHOW OUT TECHNOLOGY AND PROOF THERE IS TRUE MARKET FIT WHILE DISCOVERING NEW MARKET OPPORTUNITIES EVERY DAY OF THE REIT. ED: LET'S TALK ABOUT INVESTORS. ARE THEY TRADITIONAL INVESTORS OR THEMATICALLY FOCUSED ON THE SPACE AND HOW DO YOU GO ABOUT DOING THIS? TONY: IT'S A TOUGH ENVIRONMENT. INVESTORS AND FINANCIAL INVESTORS ARE INTERESTED FOR A COUPLE REASONS. ON THE FINANCIAL SIDE, WE'VE SHOWN THE DE-RISKING OF THE TECH, OF THE MARKET RISK.
IT'S NOW A MATTER OF SOLVING OPERATIONAL RISK AS WE MOVE TO A FULL-FLEDGED MANUFACTURING COMPANY. ED: CHIPOTLE IS ON. TONY: A COMPANY WHO MANAGES TO PRODUCE FOOD WITH INTEGRITY AND CREATE DELICIOUS CLEAN LABEL HEALTHY FOODS FOR CONSUMERS. WE ARE ABLE TO ALLOW THEM TO UNLOCK RECIPES OR IMPROVE RECIPES WITHOUT HAVING TO INTRODUCE NEW ALLERGENS OR RISK INGREDIENTS. CAROLINE: I WILL LOOK AT THE PONDS NEAR ME IN A WHOLE NEW WAY. WATER LENTILS. GREAT TO HAVE TIME WITH YOU.
CONGRATULATIONS ON THE RACE. THAT DOES IT. WHAT A WEEK. ED: ANOTHER ASTONISHING WEEK, HISTORIC IN MANY WAYS IN THE CONTEXT OF THE ELECTION AND TECH. CHECK OUT THE PODCAST. BIG THANK YOU TO THE TEAM IN NEW YORK AND SAN FRANCISCO.
2024-11-16 22:44
