Musk's Trump Role, Trump 2.0 Safety and Defense | Bloomberg Technology
ANNOUNCER: THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW . CAROLINE: TECH STOCKS A LEAD TO NEW HIGHS. WE DISCUSSED THE DRIVERS. ED: CHIP DEMAND. ARM AND QUALCOMM GIVE MIXED SIGNALS. CAROLINE: THE C-SUITE TAKE ON THE ELECTION. LET'S GET BACK TO MARKETS. THE NASDAQ 100 FINALLY REACHES
A NEW RECORD YESTERDAY. THE LIKELY MAGNIFICENT SEVEN DRIVES THIS. ED: NOVEMBER 5, ASTONISHING DAY TO REPORT. LYFT IS UP 27%. STRONG OUTLOOK. THEY ARE FINDING THEIR NICHE DESPITE THEIR BIG BROTHER ALSO DOING WELL. QUALCOMM HAS TREATED CHOPPY. ARM IS NOW UP 5.5%. CONSUMERS IN CHINA ARE BUYING
HIGHER PRICED HANDSETS. CAROLINE: CHINA, THEY KEY FOCUS FOR THE MACRO GOING FORWARD AFTER THE RESULTS OF THE ELECTION. WE SEE BIG TECH LEADING THE BENCHMARKS. JESS: THE BIGGEST PLAYER. NVIDIA COMING UP NOVEMBER 20.
WE'VE ALREADY HAD EARNINGS FROM META, MICROSOFT, ALPHABET, AMAZON. DATA CENTERS AND FIXED ASSETS, AROUND $59 BILLION WITH THOSE FOUR IN THE THIRD QUARTER ALONE. ON THE BACK OF ELECTION RESULTS, THERE ARE QUESTIONS ABOUT WHAT THIS COULD MEAN FOR BIDEN'S CHIP ACT, PARTICULARLY WITH APPLE AND CHINA, AND BIDEN TRYING TO PROHIBIT THEM FROM USING WESTERN TECHNOLOGY. ED: NVIDIA IS A WINNER IN A LACKLUSTER SEASON.
HAS ANYONE BEEN WATCHING THE SHOW? IT'S BEEN GREAT! I'VE HAD A LOT OF FUN. IS THERE A THEME OF THE NOW? JESS: USUALLY THE PLAYBOOK IN AN ELECTION YEAR IS ONCE YOU HAVE THE RESULTS, THERE TENDS TO BE A YEAR AND RALLY -- YEAR END RALLY. THE MAG SEVEN DIDN'T CONTRIBUTE IN THE THIRD QUARTER. WHEN WE HEARD FROM MICROSOFT AND META, WE DIDN'T SEE THE STOCKS POP. MOVING FORWARD, THE POSITIONING PLAY IN THE FINAL MONTHS. ED:
THANK YOU VERY MUCH. WHAT DOES TRUMP 2.0 LOOK LIKE FROM THE TECH SECTOR? DAN IVES WRITES THIS. REGULAR VIEWERS WILL KNOW THAT MUCH OF WHAT I READ OUT IS NOT A SURPRISE. LET'S START ON THE AI. WHAT GIVES YOU SUCH CONVICTION TRUMP WILL FOCUS ON AI OUT OF THE GATE? DAN: GOVERNMENT HAS BEEN BEHIND ON AI. HUGE INITIATIVES THROUGH DOD, THE AGENCIES.
POLISH FOR MICROSOFT, AMAZON -- BULLISH FOR MICROSOFT, AMAZON, PALANTIR. THEY WILL BENEFIT IN A GOLDEN AGE FOR AI. DAN: PALANTIR, THE LINK WITH GOVERNMENT. ELON MUSK. THE MARKET TRIED TO MAKE SENSE OF THE TESLA MOVE. IT'S BELIEVED TRUMP WILL REPEAL SOME OR ALL ON THE CONSUMER SIDE AND MANUFACTURER SUPPORT. THERE IS THE ASSOCIATION TAILWIND BETWEEN MUSK AND TRUMP.
WHY DOES TESLA SURVIVE BUT GM, FORD AND RIVIAN WON'T DO AS WELL? DAN: BY REMOVING THE CREDITS, THE 7500, THAT WILL GIVE A MORE EVEN PLAYING FIELD. TESLA WILL BE ADVANTAGED DURING THE DETROIT STALWARTS. THAT IS BULLISH, GIVING THEM AVAILABILITY AND OPTIONS.
THEY CAN STILL CUT PRICES MORE. THE BIG THING, THE REASON I BELIEVE THIS STOCK IS $1 TRILLION UNLOCKED, IS BECAUSE WHEN YOU LOOK AT TRUMP NOW, THIS WILL GIVE THE HIGHWAY, THE AUTOBAHN FOR AUTONOMOUS. HE WILL FAST-TRACK AUTONOMOUS, FSD. THAT IS BULLISH FOR TESLA. FOR MUSK, ONE OF THE BEST STRATEGIC BETSY EVER MADE -- BETS HE EVER MADE WAS THIS BET ON TRUMP. CAROLINE: IS THE TECH READY? DAN: NOT TODAY. IT'S GOING TO PAY POINT. AUTONOMOUS AND FSD'S $1
TRILLION INCREMENTAL VALUATION. YOU COULD SEE '27 INITIATIVES GET FAST TRACKED. TESLA AND MUSK IS THE BIG WINNER IN THE TRUMP SWEEPSTAKES ALONG WITH BIG TECH. KHAN WILL LIKELY BE OUT OF THE
FTC. THAT IS BULLISH ACROSS BIG TECH. CAROLINE: ONE AREA OF CONCERN HAS BEEN AI WILL BE FUELED. WHAT ABOUT THE INFRASTRUCTURE FOR AI? THE GROWING CHIP SECTOR IN THE U.S. IS DEPENDENT ON THE CHIPS ACT. MAYBE THAT GETS BLOWN OUT OF THE WATER. DAN: THE INFLATION REDUCTION ACT, THERE WILL BE REVISIONS. THE BIGGEST LOSER WILL BE NAMES LIKE INTEL. CAROLINE:
YOU THINK INTEL WILL BE A LOSER? DAN: THEY HAVE BEEN A LOSER. THIS IS PUTTING, HAVING GASOLINE TO THE FIRE IN TERMS OF IRA WAS GOING TO BE A HUGE OPPORTUNITY FOR INTEL. INTEL IS NOW ON THE WRONG SIDE OF THE TREND.
WITH IRA YOU WILL SEE MORE FOCUS ON CHIPS IN THE U.S. AND THE AI BUILDOUT. WHEN IT COMES TO THE TARIFFS WITH CHINA, THERE WILL BE CARVEOUTS. I DON'T THINK NVIDIA WILL BE NEGATIVELY IMPACTED. I DON'T THINK THESE OTHER NAMES, TESLA, APPLE -- IT IS IMPORTANT THAT MUSK WILL BE A WHISPERER IN THE WHITE HOUSE.
CAROLINE: YOU THINK TRUMP WILL NOT LIVE UP TO IT? DAN: THE BARK WILL BE WORSE THAN THE BITE ON THE TARIFFS. SOME WILL BE NASTIER. WHEN IT COMES TO THE EXPORTS, I THINK YOU WILL SEE CARVEOUTS. IT'S NOT AS NEGATIVE FOR SUPPLY CHAIN. THIS IS A GOLDILOCKS SCENARIO FOR TECH. IT'S A CHAMPAGNE MOMENT FOR TESLA. ED: YOU CAN HEAR ME?
BE HONEST. CAN ELON MUSK HAVE AN INFORMAL OR FORMAL ROLE IN THE ADMINISTRATION AND BE THE CEO OF TESLA, SPACEX, NERO LINK, BORING, ETC.? DAN: HE WON'T HAVE A FORMAL ROLE FROM A CABINET PERSPECTIVE. CAROLINE: THEN IT COMPLICATES. DAN: HIS OWNERSHIP AND THE STRUCTURE. I BELIEVE HE WILL BE AN UNOFFICIAL WHISPERER AND HAVE A SIGNIFICANT INFLUENCE IN THE WHITE HOUSE. THAT'S WHY. THIS WILL BE KNOWN AS THE BEST STRATEGIC BET HE EVER MADE IN TERMS OF BETTING ON TRUMP.
THIS IS JUST STARTING TO PLAY OUT IN TERMS OF THIS TRUMP-MUSK ALLIANCE. CAROLINE: APPRECIATE YOU. COMING UP, WE SPEAK WITH RENE HA AS. ♪ CAROLINE: THE SEMICONDUCTOR INDEX HAVING A LOVELY COUPLE DAYS. MOST IN THE GREEN. QUALCOMM HOLDING ONTO GAINS.
A BULLISH SALES FORECAST. THEY BEAT ANALYST EXPECTATIONS AND PROFIT CAME IN BETTER THAN EXPECTED. ARM CAME IN FROM THE RED. THEY MANAGED TO BEAT OUT THE
GATE. THE REVENUE FORECAST WAS A CONCERN. PERHAPS FELL SHORT OF EXPECTATIONS BUT THEY ARE MAINTAINING THEIR ANNUAL FORECAST. LET'S GET INTO IT. ED: SHARES ARE INTERESTING. IT TOOK TIME FOR THE MARKET TO WAKE UP. WHO KNOWS? THE CHIPMAKER GAVE A SLUGGISH OUTLOOK AND AT FIRST DISAPPOINTED. WHAT HAS CHANGED? THE CEO JOINS US NOW. LICENSING ROYALTIES. SOMETIMES IT'S NOT ABOUT UNIT
GROWTH. REVENUE. MAYBE EVIDENCE THE CHINESE CONSUMER IS BUYING HIGHER END? HANDSETS? >> OUR ROYALTIES WERE AT A RECORD NUMBER. ONE OF THE THINGS WE'VE SEEN A FEW -- A HUGE BENEFIT FROM IS OUR 9.
ONE OF THE PROOF POINTS, UNIT SALES FOR SMARTPHONES WERE UP 4% IN THE LAST QUARTER. LOYALTIES WERE UP 40%. YOU ARE SEEING A BIG DIFFERENCE. VERSION NINE COMMANDS A HIGHER ROYALTY RATE. WE ARE SEEING MORE TECH IN THESE PHONES, PARTICULARLY THE PREMIUM SEGMENT. ED: A LOT OF INVESTORS THINK YOU ARE GREAT.
YOU HAVE EMBARKED ON THIS JOURNEY FOR PROFIT AND MARGIN. ARE YOU PRICING DEPENDENT AT THIS POINT? RENE: I DON'T THINK SO. THE MARKET IS VERY LARGE. ARM DOES COMPUTE, CPU. EVERY DIGITAL DEVICE HAS ONE. YOUR RUNNING AI WORKLOADS. THAT DRIVES THE NEED FOR MORE COMPUTE CAPACITY WHICH ENDS UP WITH ARM. WE ARE FORTUNATE TO HAVE TAILWINDS DRIVING GROWTH.
I DON'T THINK ABOUT THE CEILING THAT WAY. I THINK WHERE WE ARE IS A MARKET WHERE WE CANNOT GET ENOUGH COMPUTE CAPACITY. CAROLINE: MEANWHILE PERHAPS THE TENSION AROUND COMPUTE AND AI HAS BEEN WHETHER CHINA WILL BEAT OUT THE U.S. THAT COMES INTO A CLOSER FOCUS WITH THE U.S. ELECTION. ANY OF THAT CONCERN YOU? RENE: HARD TO SAY RELATIVE TO WHAT COULD HAPPEN FROM THE PERSPECTIVE OF TARIFFS.
THE ONE THING I'M HAPPY ABOUT POSTELECTION IS HERE WE ARE AND WE HAVE A RESULT. WE ARE NOT DEBATING ABOUT WHAT COULD OR SHOULD HAPPEN. WE HAVE A RESULT, WHICH IS GOOD FOR BUSINESS IN THE COUNTRY. GOING FORWARD, WE WILL HAVE TO SEE. THE CHINA BUSINESS HAS BEEN RESILIENT IN DATACENTER AND PHONES, AUTOMOBILES. CAROLINE: THE PHONE PART.
US REPLACING PHONES WITH MORE EXPENSIVE PHONES WILL MAKE YOUR NUMBERS RESILIENT GOING FORWARD? WELL THAT OFFSET THE FACT THAT WE ARE BUYING FEWER OF THEM? RENE: YOU START THINKING ABOUT AI AGENTS THAT WILL INCREASINGLY BE RUNNING ON YOUR PHONE, THAT WILL DRIVE DEMAND FOR MORE CAPABILITY ON PREMIUM PHONES. THAT'S GREAT FOR ARM. A NEXT GENERATION PHONE STILL HAS TO RUN APPS. NOW YOU WANT TO RUN LANGUAGE MODELS AND YOU NEED TO INTERFACE WITH THE CLOUD AND DO SECURITY. THAT REQUIRES MORE COMPUTE, WHICH IS GREAT FOR ARM. YOU CANNOT DO IT WITHOUT USING AROTECH. -- OUR TECH.
BLOOMBERG REPORTED ARM WAS INTERESTED IN BUYING INTEL. RENE: I READ THAT. I'M NOT SURE WHERE IT CAME FROM. I CANNOT COMMENT ON THOSE RUMORS. ED:
MORE RECENT, A LICENSED DISPUTE WITH QUALCOMM, A LONG TIME AND CUSTOMER OF YOURS. WOULDN'T IT MAKE SENSE FOR YOU TO SETTLE AND GET SOMETHING DONE SO YOU CAN MOVE FORWARD? RENE: IT'S ONGOING LITIGATION. IT'S PRETTY STRAIGHTFORWARD. CONSENT IS REQUIRED ANYTIME ONE COMPANY BUYS ANOTHER COMPANY THAT HAS OUR TECH. CONSENT WAS NOT GRANTED IN THIS CASE. BY WAY OF HISTORY EVERY CONTRACT HAS THIS CLAUSE AND AND IN 35 YEARS WE HAVE DONE 130 ASSIGNMENTS AND 130 TIMES CONSENT HAS BEEN GRANTED. THIS TIME IT WAS NOT. WE SENT A NOTIFICATION TO
QUALCOMM THEY WERE IN BREACH. WE ARE CONFIDENT. THIS IS ABOUT FAIRNESS AND EQUITY IN THE ECOSYSTEM. WE HAVE LOTS OF PARTNERS. WE NEED TO BE EQUITABLE. WE HAVE A SITUATION, UNPRECEDENTED, WHERE CONSENT WAS NOT GRANTED AND AS A RESULT WE TOOK THE ACTION. CAROLINE: HOW IS IT DOING BUSINESS WITH A KEY CUSTOMER BUT WHO IS BECOMING A FRENEMY? RENE: THERE'S NOT MUCH MORE I CAN ADD.
FROM A FINANCIAL STANDPOINT, WE MADE ASSUMPTIONS WHEN DOING GUIDANCE THAT WE WILL NOT PREVAIL IN THIS CASE. WE HAVE TAKEN A BEARISH POSITION ON THE OUTLOOK. THAT'S ALL I CAN SAY. ED: AT THE PRODUCT LEVEL, WHAT'S
THE NEXT PHASE? RENE: THANK YOU. COMPUTE SUBSYSTEMS, TAKING THE PIECES OF IP, STITCHING THEM TOGETHER, PROVIDING A FULL SOLUTION, GREATLY SAVES ENGINEERING TIME, TIME TO MARKET, TIME TO PROFIT FOR PARTNERS -- THAT'S THE DIRECTION OF THE COMPANY. AMAZING TRACTION. LOTS OF WINS IN THE DESIGN DATACENTER SPACE. MOBILE. IT'S PERVASIVE GOING FORWARD. IT WILL ALLOW US TO GET GREAT BENEFITS TO CUSTOMERS MARKETS. THOSE DRIVE HIGHER ROYALTIES
THAN ANYTHING IN THE PAST, WHICH WILL DRIVE GROWTH. CAROLINE: WHERE ARE WILL BE IN THE ECOSYSTEM 10 YEARS FROM NOW? YOU ARE MAJORITY HELD BY SOFTBANK. NASA HAS BIG VISION. THEN THERE IS THE ELEMENT OF WHETHER YOU STICK TO THE DESIGN. WHERE DO YOU TAKE THIS BUSINESS? RENE: A LOT OF OPTIONALITY.
THINGS WE TALK ABOUT ALL THE TIME INTERNALLY. HOW HORIZONTAL DO WE GO? HOW VERTICAL? I CANNOT TALK ABOUT UNANNOUNCED PRODUCTS THIS MORNING. I WOULD LOVE TO BUT I CANNOT. WE FOCUS ON THE AI.
10 YEARS FROM NOW, ARM WILL BE INVOLVED IN COMPUTING IN A LARGE WAY. CAROLINE: APPRECIATE THE TIME. COMING UP, LYFT SHARES ARE SOARING. OUR CONVERSATION WITH THE CEO.
♪ DAVID: AV'S WILL BRING NEW PRODUCT THAT PEOPLE WOULD LIKE. SOME WILL LIKE BEING DRIVEN BY A HUMAN. SOME BY A ROBOT. THE HYBRID FUTURE. YOU PROBABLY HAVE SENSORS IN YOUR CAR RIGHT NOW. THAT IS LEVEL TWO. LEVEL FOUR IS FULL SELF-DRIVING. IMAGINE A WORLD WHERE HIGH-TECH WILL END UP IN WHATEVER, IMAGINE YOU PUSH A BUTTON. CAROLINE: THE PRESIDENT OF THE U.S. ADDRESSING THE PUBLIC FROM THE
ROSE GARDEN. PRESIDENT BIDEN: GOOD TO SEE THAT CABINET AND STAFF TOGETHER. THANK YOU. [APPLAUSE] [CHEERING] PRESIDENT BIDEN: THANK YOU. PLEASE. THANK YOU THANK YOU THANK YOU. IT'S GOOD TO SEE YOU ALL, PARTICULARLY MY GRANDDAUGHTER IN THE FRONT ROW.
FOR OVER 200 YEARS, AMERICA HAS CARRIED OUT THE GREATEST EXPERIMENT IN SELF-GOVERNMENT IN THE HISTORY OF THE WORLD. THAT IS NOT HYPERBOLE. FACT. THE PEOPLE VOTE AND CHOOSE THEIR OWN LEADERS PEACEFULLY. WE ARE IN A DEMOCRACY. THE WILL OF THE PEOPLE PREVAILS. YESTERDAY I SPOKE WITH PRESIDENT-ELECT TRUMP TO CONGRATULATE HIM ON HIS VICTORY BUT I ASSURED HIM I WOULD DIRECT MY ENTIRE ADMINISTRATION TO WORK WITH HIS TEAM TO ENSURE A PEACEFUL AND ORDERLY TRANSITION. THAT'S WITH THE AMERICAN PEOPLE
DESERVE. YESTERDAY, I SPOKE WITH VICE PRESIDENT HARRIS. SHE HAS BEEN A PARTNER, A PUBLIC SERVANT. SHE RAN AN INSPIRING CAMPAIGN. EVERYONE GOT TO SEE SOMETHING I LEARNED EARLY ON AND RESPECT SO MUCH, HER CHARACTER. SHE HAS A BACKBONE LIKE A RAMROD. TRUE CHARACTER.
SHE GAVE HER WHOLE HEART AND EFFORT, SHE AND HER TEAM SHOULD BE PROUD OF THE CAMPAIGN THEY RAN. THE STRUGGLE FOR THE SOUL OF AMERICA SINCE OUR FOUNDING HAS ALWAYS BEEN AN ONGOING DEBATE AND IS STILL VITAL TODAY. I KNOW FOR SOME PEOPLE, THERE IS A TIME FOR VICTORY, TO STATE THE OBVIOUS. FOR OTHERS, IT IS A TIME OF LOSS. CAMPAIGNS ARE CONTESTS WITH COMPETING VISIONS. THE COUNTRY CHOOSES ONE OF THE OTHER. WE ACCEPT THE CHOICE THE COUNTRY MADE.
I HAVE SAID MANY TIMES YOU CANNOT LOVE YOUR COUNTRY ONLY WHEN YOU WIN. YOU CANNOT LOVE YOUR NEIGHBOR ONLY WHEN YOU AGREE. SOMETHING I HOPE WE CAN DO NO MATTER WHO YOU VOTED FOR HIS SEE EACH OTHER NOT AS ADVERSARIES BUT AS FELLOW AMERICANS. BRING DOWN THE TEMPERATURE. ALSO IF WE COULD LAY TO REST THE QUESTION ABOUT THE INTEGRITY OF THE AMERICAN ELECTORAL SYSTEM. IT IS HONEST, FAIR AND
TRANSPARENT. IT CAN BE TRUSTED, WIN OR LOSE. I HOPE WE CAN RESTORE THE RESPECT FOR ALL OUR ELECTION WORKERS WHO BUSTED THEIR NEXT AND TOOK RISKS AT THE OUTSET. WE SHOULD THANK THEM FOR STAFFING VOTING SITES, COUNTING VOTES, PROTECTING THE INTEGRITY OF THE ELECTION. MANY OF THEM ARE VOLUNTEERS WHO DO IT OUT OF LOVE FOR THEIR COUNTRY. AS THEY DID THEIR DUTY AS CITIZENS, I WILL DO MY DUTY AS PRESIDENT. I WILL FULFILL MY OATH. I WILL HONOR THE CONSTITUTION.
ON JANUARY 20, WE WILL HAVE A PEACEFUL TRANSITION OF POWER IN AMERICA. TO ALL OUR INCREDIBLE STAFF, SUPPORTERS, CABINET, ALL THE PEOPLE HANGING OUT WITH ME FOR THE LAST FOUR YEARS, GOD LOVE YOU AS MY MOTHER WOULD SAY, THANK YOU SO MUCH YOU HAVE PUT SO MUCH INTO THE PAST FOUR YEARS. I KNOW IT IS A DIFFICULT TIME. YOU ARE HURTING.
I HEAR YOU AND I SEE YOU. DON'T FORGET ALL WE ACCOMPLISHED. IT'S BEEN AN HISTORIC PRESIDENCY, NOT BECAUSE I'M PRESIDENT, BUT BECAUSE WHAT YOU HAVE DONE. A PRESIDENCY FOR ALL AMERICANS.
MUCH OF THE WORK WE HAVE DONE IS ALREADY BEING FELT BY THE PEOPLE. THE VAST MAJORITY WILL NOT BE FELT IN THE NEXT 10 YEARS. WE HAVE LEGISLATION WE PASSED THAT IS ONLY NOW KICKING IN. WE WILL SEE OVER $1 TRILLION WORTH OF INFRASTRUCTURE, CHANGING PEOPLE'S LIVES IN RURAL COMMUNITIES, COMMUNITIES THAT ARE IN REAL DIFFICULTY.
IT TAKES TIME TO GET IT DONE. SO MUCH MORE WILL TAKE TIME. IS THERE. THE ROAD AHEAD IS CLEAR. THERE IS SO MUCH WE CAN GET DONE AND WE WILL GET DONE BASED ON THE WAY THE LEGISLATION WAS PASSED. IT IS TRULY HISTORIC.
WE ARE LEAVING BEHIND THE STRONGEST ECONOMY IN THE WORLD. I KNOW PEOPLE ARE STILL HURTING BUT THINGS ARE CHANGING RAPIDLY. TOGETHER WE HAVE CHANGED AMERICA FOR THE BETTER. NOW WE HAVE 74 DAYS TO FINISH THE TERM, OUR TERM. LET'S MAKE EVERY DAY COUNT. THAT'S THE RESPONSIBILITY WE
HAVE TO THE AMERICAN PEOPLE. LOOK FOLKS YOU WILL KNOW SETBACKS ARE UNAVOIDABLE BUT GETTING UP IS UNFORGIVABLE. -- GIVING UP IS UNFORGIVABLE. WE ALL GET KNOCKED DOWN. THE MEASURE OF OUR CHARACTER AS MY DAD WOULD SAY IS HOW QUICK WE GET BACK UP.
A DEFEAT DOES NOT MEAN WE ARE DEFEATED. THE THIS BATTLE. -- WE LOST THIS BATTLE. THE AMERICA OF YOUR DREAMS IS CALLING FOR YOU TO GET BACK UP. THAT IS THE STORY OF AMERICA
FOR 240 YEARS AND COUNTING. IT'S THE STORY FOR ALL OF US, NOT JUST SOME OF US. THE AMERICAN EXPERIMENT ENDURES. WE WILL BE OK. WE NEED TO STAY ENGAGED. WE NEED TO KEEP GOING. ABOVE ALL, WE NEED TO KEEP THE
FAITH. SO PROUD TO HAVE WORKED WITH ALL OF YOU, I REALLY NEEDED SINCERELY. GOD BLESS YOU ALL, GOD BLESS AMERICA AND MAY GOD PROTECT OUR TROOPS. THANK YOU THANK YOU THANK YOU. [APPLAUSE] [CHEERING AND SHOUTING] ED: KAILEY LEINZ JOINS US FROM NEW YORK CITY. YOUR SUMMARY? KAYLEE: THE MOST IMPORTANT POINT FOLLOWS THE CONCESSION SPEECH FROM VICE PRESIDENT HARRIS YESTERDAY. THEY BOTH ARE ACKNOWLEDGING THE DECISIVE VICTORY OF DONALD TRUMP AND PLEDGING A PEACEFUL TRANSITION OF POWER.
BIDEN CALLED TO CONGRATULATE PRESIDENT TRUMP YESTERDAY AND WILL DO HIS DUTY JANUARY 20 TO MAKE SURE THERE IS A PEACEFUL TRANSITION IN THE U.S., SIMILAR IN RHETORIC TO WHAT WE HEARD FROM KAMALA HARRIS YESTERDAY, THE SUGGESTION THAT THIS SPECIFIC FIGHT WAS LOST DID NOT NECESSARILY MEAN THERE WILL NOT BE ONES WON IN THE FUTURE. TRYING TO CHARACTERIZE HIS LEGACY, TALKING ABOUT HIS ACCOMPLISHMENTS, THE IDEA THAT THERE IS MORE WORK THEY WILL DO BECAUSE IN PART THIS IS THE SWANSONG OF PRESIDENT BIDEN, WHO IS GETTING A LOT OF BLAME WITHIN THE PARTY FOR THE LOSS OF KAMALA HARRIS, THE SUGGESTION THAT HE STAYED IN THE RACE FOR TOO LONG. HE IS GETTING A GREAT SHARE OF BLAME FOR WHAT HAPPENED THIS WEEK. VICTORY IS BEING ACKNOWLEDGED. THEY ARE PLANNING TO WORK WITH THE TRANSITION TEAM. THERE COULD BE HICCUPS AS DONALD TRUMP IS SKEPTICAL OF THE GENERAL SERVICES ADMINISTRATION, THE INTELLIGENCE AGENCIES OVERSEEING BACKGROUND CHECKS FOR THOSE INCOMING TO THE ADMINISTRATION.
BY AND LARGE THEY ARE COMMITTING TO A PEACEFUL TRANSFER, CONCEDING THAT DONALD TRUMP WON. THIS IS SOMETHING WE DID NOT SEE IN 2020. CAROLINE: THE FOCUS ON THE 74 DAYS LEFT TO ENACT POLICIES AND WHAT HAS BEEN ACHIEVED. THE MENTION OF INFRASTRUCTURE PLAYS TO THE TECH COMMUNITY HERE. HOW MUCH WILL THERE BE A FOCUS ON POTENTIALLY THE FUTURE OF A CHIPS ACT? KAILEY: THAT WILL BE DEALT WITH IN THE NEXT CONGRESS. WHAT THEY ARE LIKELY TO DEAL
WITH IN THE LAME-DUCK WHICH TENDS TO BE PRODUCTIVE AS THE CAMPAIGN IS COMPLETED, WILL SURROUND FUNDING. THERE IS A GOVERNMENT FUNDING DEADLINE ON THE 21ST OF DECEMBER. WHEN THE NEW CONGRESS IS SAT, AND WE DO NOT KNOW THE ENTIRE MAKEUP. IT WILL BE A REPUBLICAN SENATE. THE HOUSE IS UNCLEAR. IT WOULD TAKE A REPUBLICAN
HOUSE TO UNRAVEL THE CHIPS ACT. CAROLINE: WE APPRECIATE IT SO MUCH. LET'S GET BACK TO MARKETS. ED: I WOULD LIKE TO GO TO CRYPTO. WE DIDN'T HAVE A SHOW 24 HOURS AGO. WITHIN THE LAST 24 HOURS,
BITCOIN HAS GOT BELOW $76,000 PER TOKEN. THAT IS THE ALL-TIME HIGH. ONE OF THE BIG STORIES OF THE LAST 24 HOURS IS THE CRYPTO RELATED STOCKS, COMPANIES THAT HAVE EXPOSURE TO CRYPTO.
THE SENTIMENT IS SIMPLE. PRESIDENT-ELECT TRUMP WEATHER POLICY OR HIS ATTITUDE WILL APPROACH CRYPTO DIFFERENTLY. LARGELY THAT IS BEING SEEN AS SUPPORTIVE OF THE INDUSTRY. CAROLINE: OI, DID THEY MOVE HIGHER YESTERDAY. YOU PUT OUT A GREAT NOTE YESTERDAY. IT WAS OUTLINING WHAT NEXT. THERE WAS A LOT OF EUPHORIA
AROUND WHETHER THE CHAIR WILL CHANGE AND BE MORE CRYPTO LOVING AND PUT IN PLACE CLARITY AS TO THE FUTURE OF REGULATION RATHER THAN ENFORCEMENT. WHAT'S NEXT ON THE TO DO LIST? >> THANK YOU FOR HAVING ME. WHAT IS NEXT DEPENDS ON THE PRIORITIES OF THE NEW ADMINISTRATION. CRYPTO WILL NOT BE TOP OF THEIR LIST BUT HE DID MAKE PROMISES AND IT IS A THORN IN THE SIDE OF FINANCIAL INFRASTRUCTURE THAT THIS HAS NOT BEEN DEALT WITH.
THERE WILL BE LIMITS TO WHAT THEY CAN DO SHORT-TERM. CRYPTO'S SPIRITS ARE GETTING AHEAD OF THEMSELVES. A CHANGE OF REGIME AT THE S FCC WOULD BE GOOD FOR ASSETS. ED: DO YOU HAVE A GOOD SENSE OF WHERE PRESIDENT-ELECT TRUMP WILL START? NOELLE: THE LOW HANGING FRUIT HAS TO BE A CHANGE AT THE FCC. THAT WOULD HAVE HAPPENED ANYWAYS.
THE TYPE OF CHANGE NOW WILL BE SLIGHTLY DIFFERENT. THAT'S AN EASY ONE. CHEVRON WAS OVERTURNED. THE FTC HAS ITS HANDS TIED. JUST REMOVING THE FEAR OF ACTION IS A BIG DEAL. CAROLINE: THEN YOU ARTICULATED MAYBE WE
LOOK AT STABLECOIN. SOME CLARITY GOING FORWARD. ALSO THINKING ABOUT WHAT CONGRESS LOOKS LIKE. A LOT OF PEOPLE WERE BACKED BY MONEY COMING FROM THE CRYPTO COMMUNITY THAT WANTED TO SEE MORE CHANGE FROM A CONGRESSIONAL PERSPECTIVE. SENATOR CYNTHIA LUMMIS GOES ON TO TALK ABOUT IT.
WHAT DO YOU MAKE OF THE PROMISE FROM TRUMP? NOELLE: A LOT OF CHATTER. EVERYONE IS ASKING WHEN WILL THIS HAPPEN? I AM SKEPTICAL WE WILL GET ONE. TRUMP HIMSELF MIGHT WALK BACK WHEN HE REALIZES IT INVOLVES SELLING DOLLARS TO GET BITCOIN. EVEN IF HE DOESN'T, THEY WILL BE HARD TO GET THROUGH CONGRESS. IT WOULD BE GOOD NEWS FOR THE MARKET IF THE U.S. DECIDES TO NOT SELL ITS CURRENT
STASH. AS FOR STABLECOINS, BEST LOW HANGING FRUIT. THE STABLECOIN BILL IS BIPARTISAN. THAT'S GOING TO BE EASY. WE WILL GET THAT RIGHT OFF THE BAT, DEPENDING HOW FAST CONGRESS MOVES. WE HAVE THE MOST CRYPTO FRIENDLY CONGRESS EVER. ASTONISHING. WHAT IS NEEDED IS A CRYPTO BILL THAT WILL RECOGNIZE THE DEFINITIONS HAVE CHANGED AND NEW TYPES OF RULES WILL BE NEEDED. CAROLINE: WE THANK YOU.
COMING UP, PALMER LUCKY. PRESIDENT TRUMP HEADS BACK TO THE WHITE HOUSE. QUESTIONS LINGER AROUND HIS DEFENSE. ♪ THIS IS BLOOMBERG. FOUR FOUR ED: AS DONALD TRUMP PREPARES TO GO BACK TO THE WHITE HOUSE, THERE ARE QUESTIONS AROUND HIS POLICIES ON AI, DEFENSE TECH AND SPENDING. I WANT TO FOCUS ON TECH. I WOULD LIKE TO INVITE YOU TO
GIVE YOUR REACTION TO THE OUTCOME OF THE ELECTION AND REFLECT SENTIMENT ABOUT THE NEXT FOUR YEARS. PALMER: OBVIOUS TO MOST PAYING ATTENTION. I KNOW THAT'S CONTENTIOUS. I DIDN'T THINK IT WOULD BE CLOSE. I HAVE BEEN A TRUMP SUPPORTER FOR A LONG TIME. I WROTE A LETTER TO HIM WHEN I
WAS IN COLLEGE TELLING HIM HE SHOULD RUN FOR PRESIDENT IN 2011. I AM A BIG FAN OF HIS PICK IN JD VANCE. HE'S DONE AN INCREDIBLE JOB. I HAVE KNOWN JD FOR A WHILE. INCREDIBLE PERSON. MY REACTION ON THE BUSINESS SIDE, IT IS GREAT TO HAVE SOMEONE INBOUND WHO IS DEEPLY ALIGNED WITH THE IDEA YOU CAN SPEND LESS ON DEFENSE AND GET MORE. WE NEED TO DO A BETTER JOB
PROCURING DEFENSE TOOLS. TRUMP WAS FAMOUSLY INVOLVED IN THE PROCUREMENT OF AIR FORCE 1. TO SEE THAT LEVEL OF INVOLVEMENT FROM A PRESIDENT IS RARE AND INDICATE HIS PRIORITIES. CAROLINE: YOU WROTE A LETTER TO THE GUY IN 2011. WHO KNOWS IF THAT INSPIRED HIS RUN? ARE YOU TALKING ABOUT ANYONE FOR THE DEFENSE SECRETARY? PALMER: I'VE GOT OPINIONS. I'M IN TOUCH WITH THE TRANSITION TEAM. I'VE KNOWN THEM FOR A LONG TIME.
I'VE HEARD A FEW NAMES THROWN AROUND. FOR THE MANY ROLES. MAYBE NOT THE SECRETARY LEVEL. CAROLINE: WHAT NAMES? PALMER: I DON'T WANT TO THROW ANY OUT THERE BECAUSE I WOULD BE HAPPY WITH ALL OF THEM. THERE'S NOT A SINGLE NAME I AM UNHAPPY WITH. I HAVE TO PLAY NICE. ALL THE NAMES I HAVE SEEN OUR PEOPLE DOING AN INCREDIBLE JOB. ED:
ANDURIL HAS SPENT YEARS WORKING WITH THE DOD. COULD YOU TALK US THROUGH THE CHANGES NEEDED IN THAT DEPARTMENT STRUCTURALLY IN TERMS OF HOW GOVERNMENT DOES BUSINESS WITH PRIVATE ENTERPRISE? PALMER: I GOT INTO THE SPACE, I SOLD OCULUS TO FACEBOOK, WAS WORKING ON VR BEFORE I GOT FIRED. I GOT INTO SECURITY BECAUSE I WANTED TO SAVE TAXPAYERS MONEY. THAT CAN BE DONE BY ENCOURAGING PRODUCT COMPANIES WHO USE THEIR MONEY TO BUILD. THEN HAVE SKIN IN THE GAME. WHEN THEY FAIL, THEY LOSE MONEY. WHEN THEY SUCCEED, THEY MAKE
MONEY. A LOT OF DEFENSE PROCUREMENT TODAY COSTS PLUS CONTRACTING. IT REWARDS THE WRONG THINGS. YOU MAKE MORE MONEY BY MAKING THINGS MORE EXPENSIVE. YOU MAKE MORE PLUS BY HAVING MORE COST AND THAT MANIFESTS IN COMPONENTS THAT ARE MORE EXPENSIVE BECAUSE IT IS A WAY TO MAKE MONEY ON IT. THEY MAKE MORE MONEY WITH
THINGS THAT BREAK FREQUENTLY. WE NEED COMPANIES ALIGNED WITH THE WAY WE DO BUSINESS IN THE REST OF OUR ECONOMY. BUILD A GOOD PRODUCT AND MAKE MONEY. CAROLINE: WHO WILL BENEFIT FROM THE SHAKEUP? PALMER: THE WINNERS, A LOT OF THE NEW STARTUPS SPRINGING UP IN THE WAKE OF OUR SUCCESS. OTHER DEFENSE STARTUPS HAVE RAISED MORE MONEY OFF MY SUCCESS THEN I HAVE, WHICH I FINE WITH. I HAVE RAISED BILLIONS. PEOPLE UNDERSTAND THIS IS A VIABLE BUSINESS MODEL.
THE BENEFICIARIES WILL ALSO BE COMPANIES THAT HAVE BEEN AROUND A LONG TIME. THE COMPANIES THAT SUFFER WILL BE THE ONES THAT TRY TO SHUNT RESPONSIBILITY FOR FAILURES OVER AND AGAIN ONTO THE TAXPAYER. I DON'T WANT TO MAKE THIS SOUND LIKE JUST A TRUMP THING. THIS IS A NONPARTISAN IDEA. WE HAVE BEEN AROUND FOR EIGHT
YEARS. WE DID WELL UNDER TRUMP AND WE DID BETTER UNDER BIDEN. I THINK WE WILL DO EVEN BETTER NOW. THE DEFENSE SPACE HAS REMAINED NONPARTISAN. I AM A REPUBLICAN, I'M THE FOUNDER OF ANDURIL. OUR CEO IS A DEMOCRAT. THE IDEA THAT THE U.S. MILITARY SHOULD BE THE
STRONGEST IN THE WORLD AND THAT WE SHOULD DEFEND ALLIES AROUND THE WORLD NOT JUST WITH OUR MILITARY BUT GIVING THEM THE TOOLS THEY NEED TO DEFEND THEMSELVES IS A NONPARTISAN IDEA. ED: HAS THE ELECTION OF DONALD TRUMP CAUSED ANDURIL TO CHANGE PLANNING FOR CHINA AND ALLIES LIKE TAIWAN? PALMER: UH, I DON'T THINK SO. I WAS CERTAIN HE WAS GOING TO WIN. I THINK IT WAS BAKED IN. ED: FASCINATED. BEAR WITH ME. ELON MUSK.
ASSOCIATION BETWEEN THEM. THE GREAT UNKNOWN IS WHETHER MOSQUE WILL HOLD A FORMAL -- MUSK WILL HOLD A FORMAL OR INFORMAL ROLE? WHAT IS YOUR ASSUMPTION ON HOW MUCH ATTENTION HE CAN KEEP TRUMP FOCUSED ON DEFENSE AND WHAT DO YOU THINK IT WILL LEAD TO? PALMER: I THINK ELON HAS OUTPERFORMED EVERY REASONABLE EXPECTATION OF THEM. I WAS ONE THAT DIDN'T BELIEVE HE COULD SUCCESSFULLY WORK ON TWITTER AND SPACEX AND TESLA AND SOLARCITY AND LINK AND POLITICS AND EVERYTHING ELSE AND DIABLO 4, TOP 20 RANKED, ALL AT THE SAME TIME BUT HE HAS DONE IT. ON THE ONE HAND IT IS EASY TO
SAY IT WILL BE HARD FOR HIM AND KEEP THIS ADMINISTRATION FOCUSED ON SPACE, MAKING HUMANITY MULTI-PLANETARY AND EXTRASOLAR. EVERYONE WHO HAS EVER BET AGAINST ELON HAS COME AWAY CRYING. I WILL PROBABLY HAVE TO SAY YEAH I BET HE WILL DO IT SOMEHOW. CAROLINE: ANDURIL FOUNDER PALMER, THANK YOU. WE WILL DISCUSS MORE ABOUT ELON MUSK. ♪ CAROLINE: ELON MUSK'S BIG BET ON DONALD TRUMP HAS PAID OFF. TESLA ROCKETING.
WHAT DOES IT MEAN FOR X? MAX DISCUSSES A MASSIVE PAYOFF . WHAT ABOUT THE OTHER AREAS OF GROWTH? >> X WE NEED TO STOP THINKING ABOUT AS A BUSINESS THAT EXISTS OUTSIDE OF HIS GENERAL EMPIRE. ITS VALUE HAS FALLEN THE PAST COUPLE YEARS. ITS INFLUENCE AND POLITICAL WORTH, WHAT IT GIVES ELON MUSK'S OTHER AREAS IS PROBABLY WORTH MORE THAN WHAT HE PAID FOR IT OR THE MONEY HE LOST IN RUNNING IT. SPACEX STANDS TO GAIN TREMENDOUSLY FROM THE ELECTION. TRUMP ON THE STUMP WAS TALKING ABOUT MARS, ORDERING ROCKETS FROM ELON. IF THAT HAPPENS, THAT WILL BE
WORTH BILLIONS, TENS OF BILLIONS TO ELON MUSK. HIS BRAIN IMPLANT THING IS FEDERALLY REGULATED. THE BORING COMPANY, FEDERALLY REGULATED. AI POTENTIALLY. ED: FEDERALLY REGULATED IS THE KEY POINT. IN HISTORY, HIGH PROFILE PEOPLE GOING INTO GOVERNMENT IS NOT NEW. WILL HE SEE IT THROUGH?
WILL HE STILL BE WITH TRUMP IN SUMRALL ONE YEAR FROM NOW? MAX: THE COMPARISON WITH FOLKS LIKE GARY COHEN IS INSTRUCTIVE. LOTS OF BUSINESS PEOPLE, WHO DURING THE LAST TRUMP PRESIDENCY, NAVIGATED TOWARD TRUMP AND ULTIMATELY HAD A NOT GREAT EXPERIENCE. THIS GUY TAKES UP A LOT OF SPACE. HE'S FAMOUSLY STRONG HEADED. ELON MUSK'S PERSONALITY AND DONALD TRUMP'S, YOU MIGHT SAY HOW CAN THEY BE IN A ROOM TOGETHER? ELON MUSK IS WAY RICHER THAN ANY OF THOSE GUYS YOU MENTIONED AND WAY MORE POWERFUL AND HAS A PERSONAL BRAND OF CELEBRITY. HE IS AS FAMOUS AS THE MOST FAMOUS PEOPLE IN THE WORLD. HE HAS LEVERAGE OVER TRUMP THAT MAY BE THESE OTHER PEOPLE DID NOT HAVE. ELON MUSK NEEDS DONALD TRUMP.
I WOULD ARGUE DONALD TRUMP AND THE REPUBLICANS NEED TO ELON MUSK. CAROLINE: THERE ARE OTHER POSITIONS OF POWER WITHIN THE U.S. GOVERNMENT. WILL THERE BE CHECKS AND BALANCES? MAX: YOU HAVE TO LOOK AT THE PAST TRUMP PRESIDENCY AND THE CHARACTER OF ELON MUSK AND DONALD TRUMP. THESE ARE NOT GUYS WHO PAY CLOSE ATTENTION TO THE RULES. WE WILL SEE A LOT OF CONVERSATION ABOUT POTENTIAL ETHICS VIOLATIONS. SHOULD A GUY WHO OWNS A MAJOR DEFENSE CONTRACT BE GIVING THE U.S.
GOVERNMENT ADVICE ON DEFENSE PERSONNEL? THAT'S PROBABLY GOING TO RUN AFOUL OF ETHICS. DO I EXPECT THAT TO SLOW DOWN ELON MUSK? NO. ED: PALMER LUCKY IS A MAJOR CONTRACTOR AND HE WAS GIVING LOADS OF ADVICE TO THE FUTURE ADMINISTRATION. MAX: THERE IS A DIFFERENCE BETWEEN GIVING ADVICE AND BEING PART OF THE WHITE HOUSE. ED: IT'S THE ONLY QUESTION, FORMAL
OR INFORMAL ROLE? I PROMISE I WILL TRY TO FIND OUT. CAROLINE: THAT'S IT FOR THIS EDITION. WE DID GET THROUGH A LOT. EARNINGS, THE FED, THE ELECTION. ♪ ED: CHECK OUT THE POD. THANK YOU. THIS IS BLOOMBERG.
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