Tech Stocks Rise on US-China Trade, Trump Talks Apple | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: LIVE FROM NEW YORK, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, STOCKS POWERING HIGHER. PLUS, PRESIDENT TRUMP SAID HE SPOKE TO APPLE CEO TIM COOK THIS MORNING AND ALL EYES ON CATL, AS THEY GET READY FOR A HONG KONG LISTING WITHOUT U.S. INVESTORS.
CHECKING ON THESE MARKETS COULD LEAD YOU ON TRACK FOR A BULL MARKET. THE BULL MARKET AND NASDAQ 100, WE ARE MORE THAN 20% OFF OF OUR LOWS THAT WE HIT IN EARLIER APRIL. ALL OF THAT SURROUNDING THE ANXIETY THAT WAS, OF COURSE, TRUMP TRADE TARIFFS AND THE IMPACT ON THE MAGNIFICENT SEVEN. WE ARE CURRENTLY UP 3% ON THE DAY, AS WE PULL BACK ON THE 145% TARIFFS. WE SEE A 35% TARIFF INSTEAD GOING ON THE UNITED STATES. THIS 90-DAY REPRIEVE, IT REALLY DOES APPLY THE BIG TECH THE MOST. WE SEE A 7% MOVE ON AMAZON.
RETAIL COMING FROM CHINA INTO THE 145% COST IMPACT, AND NOTABLY THE CHINESE RETAILERS CONTINUE TO ADVERTISE. WE SEE APPLE UP MORE THAN 5%. IT IS STILL IMPACT THE MOVE AND CHIPS FOR INDIA AND ALIKE, BECAUSE 25% TARIFFS IS STILL A LOT ON THE LIKES OF YOUR SMARTPHONE. TAS LOVE MORE THAN 6% AS THEY MANAGED TO ONCE AGAIN GET -- TESLA UP MORE THAN 6% OF THEY MANAGED TO ONCE AGAIN GET ACCESS TO RARE EARTHS. PRESIDENT TRUMP SAID HE IS
LIKELY TO SPEAK WITH CHINESE LEADERS LATER THIS WEEK. TAKE A LISTEN. PRES. TRUMP: THE TALKS IN GENEVA WERE VERY FRIENDLY. THE RELATIONSHIP IS VERY GOOD.
WE ARE NOT LOOKING TO HER CHINA. CHINA IS HURTING PRETTY BADLY. THEY WERE CLOSING UP FACTORIES. THEY WERE HAVING A LOT OF UNREST, AND THEY WERE VERY HAPPY TO BE ABLE TO DO SOMETHING WITH US, AND THEIR RELATIONSHIP IS VERY GOOD. I WILL SPEAK TO PRESIDENT XI MAYBE AT THE END OF THE WEEK. CAROLINE: WE BRING YOU ANALYSIS. MIKE SHEPARD IS STANDING BY. ALL OF THIS A HUGE SOME MARKETS. THE FACT THAT WE ARE BACK IN A
TECHNICAL BULL MARKET IS EXTRAORDINARY, MIKE. SHOULD THEY BE THIS RISK ON? MIKE: IT'S A GREAT QUESTION ABOUT WHETHER RISK ON IS APPROPRIATE, GIVEN THE FACT THAT WE ARE ONLY AWAITING A 90-DAY BREAK AS NEGOTIATORS FROM THE U.S. AND CHINA TRY TO HASH THROUGH SOME OF THE FINE PRINT OF WHAT WAS DISCUSSED OVER THE WEEKEND BETWEEN THE LEADING NEGOTIATORS FROM BOTH COUNTRIES. NOW, THEY HAVE A LOT TO GET THROUGH. THE FINE PRINT INCLUDES WHERE THEY END UP ON TARIFFS BUT ALSO SOME OF THE NONMONETARY TARIFF BARRIERS. DONALD TRUMP HAD SAID CHINA HAD AGREED TO LIST AS A WAY TO OPEN UP THE CHINESE MARKET MORE TO AMERICAN GOODS.
LIKEWISE, THE CHINESE HAD THEIR OWN ASKS OF THE ADMINISTRATION, AND IT IS NOT CLEAR FROM AT LEAST WHAT WE ARE HEARING FROM PRESIDENT DONALD TRUMP, WHAT THOSE MIGHT BE, SO THERE'S A LOT OF ROAD AHEAD ON ALL OF THIS. WE HAVE TO AWAIT WHAT MAY BE COMING IN TERMS OF SECTOR WIDE TARIFFS. YOU MENTIONED WHEN YOU OPEN AIR THAT APPLE IS EXEMPTED NOW FROM THE 10% RECIPROCAL TARIFFS, BUT APPLE AND OTHER TECH COMPANIES ARE WAITING WITH COULD BE HAPPENING WITH SEMICONDUCTORS BEEN A MEMBER, THE AND ADMINISTRATION IS CONDUCTING -- SEMICONDUCTORS. REMEMBER, THE ADMIN ATTRITION IS CONDUCTING AN INVESTIGATION INTO SEMICONDUCTORS AND WHAT LEVEL THAT TARIFF SHOULD BE AT.
THERE'S A FAIR AMOUNT OF UNCERTAINTY LINGERING FOR TECH AND INVESTORS. CAROLINE: CERTAINLY. NVIDIA WRAPPED UP IN THIS SEMICONDUCTOR IS IVY AS WELL, MIKE. THE DEVIL IS IN THE DETAILS COULD WE HAVE A LOT TO DISCUSS OVER THE NEXT.
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
THEY EACH SAW TRI CHINA LIVING UP TO -- NOT LIVING UP TO ALL OF THE ELEMENTS OF THE DEAL, INCLUDING THE PURCHASES OF U.S. AGRICULTURAL PRODUCTS, FOR EXAMPLE, BUT THERE'S A LOT OF AREAS WHERE THE FINE PRINT MAY END UP FALLING APART FOR BOTH SIDES. CAROLINE: WE ARE STILL THINKING THAT THERE AN ADVERSARIAL RELATIONSHIP, AND THIS IS HIGHLIGHTED BY A KEY SHARES A SALE GOING ON IN HONG KONG THIS WE UNDERSTAND CATL, THE CHINESE BATTERY MAKER, YOU CANNOT BUY IT IF YOU ARE A U.S. INVESTOR, RIGHT, MIKE? MIKE: THAT IS RIGHT. THEY ARE IN STORAGE FROM DOING SO, AND SOME HOUSE LAWMAKERS SENT A WARNING SHOT IN A LETTER TO U.S. BANKS LAST MONTH SAYING, STEER CLEAR OF THIS ONE, BECAUSE WE ARE LOOKING AT CATL ON NATIONAL SECURITY GROUP ROUNDS. THEY HAVE CONCERNS THAT THERE
MAY BE SOME SECURITY IMPLICATIONS FROM THE USE OF THESE BATTERIES HERE IN THE U.S., IN U.S. PRODUCTS, AND THEY ALSO SEE AN ELEMENT OF COMPETITION. THE U.S. WANTS TO MAKE SURE THAT CHINA DOES NOT GET TOO FAR, EVEN FURTHER AHEAD, WHEN IT COMES TO ELECTRIC VEHICLES, AND THE BATTERIES, OF COURSE, ARE WHERE IT ALL STARTS. NOW, WHEN YOU LOOK AT THE SHEER SALES OF TARIFFS, IT IS A SIGN OF OPTIMISM, THE FACT THEY ARE PRICING THIS UP TO $4 BILLION IN U.S. TERMS, THAT SIGNALS THERE'S
SOME OPTIMISM THAT MAY BE TRADE TENSIONS WON'T BE QUITE AS BAD AS THEY WERE, WON'T BE SO MUCH OF IT OVER HIRING, EVEN IN THE -- OVERHANG AND THE CHINA IPO MARKET. CAROLINE: MICHAEL SHEPARD, WE THANK YOU VERY MUCH INDEED. LET'S GET MORE ON ALL THESE TRADE CHANGES, HOW THEY ARE IMPACTING THE TRADE SECTOR. WE WELCOME JASON OXMAN, PRESIDENT OF THE ENERGY COUNCIL, AND WE ARE SO PLEASED TO HAVE YOUR VOICE, BECAUSE WITHIN YOUR INDUSTRY, THERE ARE THEY LIKES OF NVIDIA, APPLE.
HOW WILL MARKETS BE REACTING TO THIS? JASON: VERY POSITIVE REACTION IN THE DAYS AHEAD. GREAT TO BE WITH YOU ON THIS BREAKING NEWS. I THINK THE MOST IMPORTANT ELEMENT, AND MIKE ALLUDED TO THIS IN YOUR CONVERSATION, IS THE STATEMENT THAT CAME ON JOINTLY FROM THE U.S. AND CHINESE NEGOTIATORS IN
GENEVA. NOW COME IN THE TRADE WORLD, THE JOINT STATEMENTS ARE SOMETHING WE WANT TO LOOK AND PARSE OUT AND SEE WHAT REALLY MEANS, BUT THE FACT THAT THE STATEMENT WAS ISSUED JOINTLY BY NEGOTIATORS, THEY PUT OUT TOGETHER, AND THE VERY OPENING LEVEL OF THAT JOINT STATEMENT THAT WAS PUT OUT THIS MORNING IS ABOUT THE IMPORTANCE OF THE ECONOMIC RELATIONSHIP OF THE TRADE RELATIONSHIP BETWEEN THE U.S. AND CHINA. ABOUT THE IMPORTANCE OF A SUSTAINABLE, LONG-TERM, MUTUALLY BENEFICIAL ECONOMIC AND TRADE RELATIONSHIP BETWEEN THE U.S. AND CHINA.
SO TODAY'S ANNOUNCEMENT OF THE TARIFF PAUSE IS OBVIOUSLY ENORMOUSLY IMPORTANT, BUT WHAT IT SUGGEST FOR THE NEGOTIATIONS IN THE MONTHS AHEAD IS THAT THE PARTIES ARE VERY FOCUSED AND DEDICATED AND BELIEVE THAT A MUTUALLY BENEFICIAL AGREEMENT CAN BE STRUCK. SO LOOKING EVEN IN THE MEDIUM AND LONG TERM, I'M FEELING VERY OPTIMISTIC, AND THE TECH INDUSTRY IS FEELING OPTIMISTIC ABOUT WHERE WE ARE HEADING. CAROLINE: SCOTT BESSENT HAS BEEN NEGOTIATING THIS. WE JOINED OUR COLLEAGUES ON "BLOOMBERG SURVEILLANCE" A LITTLE BIT EARLIER. HAD A LISTEN TO WHAT HE SAID. [VIDEO CLIP] SEC. BESSENT: CHINA WAS THE ONLY COUNTRY THAT ESCALATED THEIR TARIFFS IN RESPONSE TO OUR RECIPROCAL TARIFF LEVEL, SO THAT RESULTED IN AN UNFORTUNATE ESCALATION, SO WE NOW HAVE A MECHANISM TO DEAL WITH THAT.
NEITHER SIDE ONCE A GENERALIZED DECOUPLING. THE UNITED STATES IS WILLING TO DO A STRATEGIC DECOUPLING. CAROLINE: I WANT TO GET YOUR TAKE ON WHAT STRATEGIC DECOUPLING MEANS, JASON, FOR MEMBERS OF YOUR KEY TRADE ASSOCIATION, APPLE, NVIDIA. JASON: YEAH. I THINK IT IS A REALLY IMPORTANT STATEMENT FROM THE TREASURY SECRETARY. MEANS WE ARE RETURNING TO A PLACE WHERE WE LOOK AT NATIONAL SECURITY ISSUES SEPARATE AND APART FROM ECONOMIC ISSUES. WHERE WE WERE IN A BAD PLACE,
AS THE TREASURY SECRETARY SAID, WITH THE RECIPROCAL TARIFFS ON BOTH SIDES, WAS HEADED TOWARD DECOUPLING. WHERE WE WILL SEE THIS GOING FORWARD IS A PLACE WHERE WE LOOK AT NATIONAL SECURITY ISSUES LIKE THE HIGHEST SECURITY NEED TO MAKE SURE, FOR EXAMPLE, THAT THE CHINESE COMMUNIST PARTY MILITARY DOES NOT GET ACCESS TO THE LATEST GENERATION OF AI TECHNOLOGY, BUT AT THE SAME TIME, CHINA, WHICH IS AN ENORMOUSLY VALUABLE MARKET, 1.5 BILLION PEOPLE, TOP THREE ECONOMY IN THE WORLD, CAN GET ACCESS TO OTHER U.S. TECHNOLOGY. THE SEMICONDUCTOR SPACE IS A GOOD EXAMPLE OF THAT. WE WILL MAKE SEMICONDUCTORS IN THE UNITED STATES GOING FORWARD PRESIDENT TRUMP IS VERY FOCUSED ON THAT. YOU SEE THE TECH INDUSTRY ANNOUNCED HUNDREDS OF BILLIONS OF DOLLARS IN INVESTMENT IN THE U.S. BUT IF YOU CANNOT SELL ANY SEMICONDUCTORS TO CHINA, THAT
INVESTMENT IN THE U.S. DOES NOT MAKE AS MUCH SENSE AS IF YOU CAN. SO WE FOCUS VERY NARROWLY NOT ON THE TOTAL DECOUPLING OF THE ECONOMY IS BUT JUST ON THAT NATIONAL SECURITY ISSUE, TO MAKE SURE THAT, FOR EXAMPLE, THE MILITARY DOES NOT GET THE NEXT GENERATION OF TECHNOLOGY. THEN WE CAN MAKE SURE THAT THE ECONOMIC INVESTMENT THAT IS NECESSARY TO TRADE WITH CHINA CONTINUES TO HAPPEN. THAT IS WHAT WE ARE SEEING TODAY. CAROLINE: IT IS INTERESTING THAT WE HEARD PRESIDENT TRUMP SAYING HE'S ALREADY SPOKEN TO TIM COOK ABOUT THE $500 BILLION THAT IS BEING COMMITTED.
THAT, IN, SOME WAY IS ABOUT SEMICONDUCTOR PRODUCTION IN THE UNITED STATES. HOW ARE CEO'S LIKE JENSEN AND TIM COOK GOT WHAT THEY NEED TO INVEST AND TO INVEST LOCALLY RIGHT NOW? JASON: YEAH. YOU SAW IT IN THE WHITE HOUSE A DAY AFTER THE PRESIDENT WAS INACCURATE BECOME A $500 BILLION ANNOUNCEMENT IN AI MANUFACTURING HERE IN THE U.S.
FROM OPENAI, ORACLE COMMANDS OFTEN SINCE THAT -- ORACLE, AND SOFTBANK. SINCE THAT TIME, YOU'VE SEEN AN ADDITIONAL ANNOUNCEMENT OF BILLIONS IN INVESTING. THIS PERIOD OF UNCERTAINTY, CREATED BY THE ESCALATING RECIPROCAL TARIFFS, COULD HAVE BEEN HARMFUL TO THAT INVESTMENT, NO QUESTION ABOUT IT. BUT WHAT WE ARE SEEING TODAY IS GETTING BACK TO WHERE WE NEED TO BE, WHERE THE TECH INDUSTRY IS VERY FOCUSED ON THAT INVESTMENT, SEMICONDUCTORS, AI, MANUFACTURING, DATA SERVERS. ALL OF THAT HAPPENING IN THE U.S. TO THE TURN OF CLOSE TO $2
TRILLION THAT HAS BEEN ANNOUNCED IN RECENT WEEKS AND MONTHS. AND I THINK WE WILL SEE THAT INVESTMENT ONLY ACCELERATE GOING FORWARD, NOW THAT WE ARE GOING BACK TO A PLACE WHERE WE KNOW THAT TRADE WITH CHINA IS GOING TO HAPPEN, IS A HUGE MARKET, WE NEED TO SELL INTERNATIONALLY. 95% OF THE PEOPLE WHO LIVE ON THE PLANET DO NOT LIVE IN THE UNITED STATES.
IF YOU ARE MANUFACTURING IN THE WORLD, YOU NEED TO -- IN THE U.S., YOU NEED ACCESS TO THE WORLD. CAROLINE: ON THAT POINT, IT FEELS AS THOUGH YOU ARE CURRENTLY VOICING THE ISSUE THAT HE WANTS TO BE ABLE TO ACCESS THE CHINESE MARKET, NOT WITH THE MOST SIGNIFICANT TO GET -- THE MOST SOPHISTICATED CHIPS BUT AT LEAST WITH SOME. JASON: IT'S REALLY IMPORTANT FOR U.S. COMPANIES. WE WANT THE U.S. TO LEAD IN THE WORLD IN AI AND MANUFACTURING. IF MANUFACTURING IN THE U.S. MEANS THAT COMPANIES MANUFACTURING IN THE U.S. CAN ACCESS THE REST OF THE
WORLD, THAT WILL ONLY ENCOURAGING MORE MANUFACTURING INVESTMENT. THE SECOND THING IS MAKE SURE WE DON'T PROVIDE A PERVERSE INCENTIVE FOR CHINESE MANUFACTURERS TO STEP UP THEIR GAME AND ACCESS GLOBAL MARKETS. WE WANT THE REST OF THE WORLD TO BUY FROM THE U.S.
AS WELL, NOT JUST CHINA. SO IF U.S. TECHNOLOGY IS NOT AVAILABLE TO THE REST OF THE WORLD, IF THE U.S. IS NOT A RELIABLE TRADING PARTNER FOR MANUFACTURING THAT HAPPENS IN THE U.S., WE ARE GOING TO SEE OTHER COUNTRIES TAKE ADVANTAGE OF THAT OPPORTUNITY. WE WANT NVIDIA AND ALL THE OTHER GREAT U.S. COMPANIES, GREAT TECHNOLOGY COMPANIES, THAT ARE MANUFACTURING IN THE U.S., TO LEAD THE WORLD, AND MAKING SURE
THAT THESE TRADE AGREEMENTS THAT WE ARE MOVING TO VERY QUICKLY, MAKE THAT ACCESS POSSIBLE, THAT'S GOING TO ENCOURAGE THEM TO INVEST IN AND MANUFACTURE IN THE U.S., AND IT WILL MAKE SURE THAT U.S. AI LEADERSHIP CONTINUES, A CLEAR TRUMP ADMINISTRATION PRIORITY. CAROLINE: JASON OXMAN, GREAT TO HAVE YOU ON, PRESIDENT AND CEO OF THE INFORMATION TAKE NOTE -- THE INFORMATION TECHNOLOGY INDUSTRY COUNCIL. LET'S TALK MORE ABOUT THE
OPENAI PROJECT THAT JASON WAS REFERENCING. IT HAD A LITTLE TROUBLE TO GET OFF THE GROUND. WE WILL DISCUSS WHY.
CAROLINE: IN THE U.S., THINGS THAT HIT A SPEED BUMP FOR THE SOFTBANK. THEY HAD PLANNED A BILLION-DOLLAR INVESTMENT IN AI INFRASTRUCTURE, BUT BEGINNING DETAILED DISCUSSIONS WITH BANKS AND INVESTORS. FOR MORE, BLOOMBERG'S SETH FRIEDMAN JOINS US. THIS IS ABOUT AI INFRASTRUCTURE HERE IN THE UNITED STATES. IS IT ABOUT THE DEEPSEEK MODEL ISSUE OR A TRADE TENSIONS AND TARIFFS? SAM: YOU KNOW, I THINK IT IS ABOUT ALL OF THE ABOVE. THE PICTURE HAS CHANGED PRETTY
DRAMATICALLY IN THE MONTHS SINCE THIS DEAL WAS ANNOUNCED. THE WHITE HOUSE NEEDS TO BE LAUNCHED, AND SUDDENLY SINCE THEN, IT'S BEEN A GLUT OF THESE CHEAP AI MODELS THAT POTENTIALLY RAISE QUESTIONS ABOUT THE PROFIT AND REVENUE PROCURED FOR OPENAI, ONE OF THE BIG BACKERS OF THIS PROJECT. AT THE SAME TIME, WE SEEN A BIT OF A DATA CENTER PULLBACK, CONCERNS OVER OVERSUPPLY IN THE U.S. AND OTHER MARKETS. AS YOU MENTIONED WITH TARIFFS, JUST GENERAL BROADER ECONOMIC UNCERTAINTY COMING OUT OF THAT SEEMS FAVORABLE FOR A $100 BILLION OR $500 BILLION AI INFRASTRUCTURE BID. CAROLINE: YEAH. BECAUSE IT IS MEANT TO BE SCALING UP. ORACLE AND OPENAI LESS ON THE MONEY SIDE. SETH: YEAH.
I THINK OPENAI, SOFTBANK IS A BIG PIECE OF THE BILLION-DOLLAR PLEDGE. ONE OF THEM IS OPENAI, LEANING VERY HEAVILY ON FINANCING FIRM SOFTBANK, SO SOFTBANK HAS AND A SECOND FAISAL RESERVATIONS, THAT IS NOT BACK. I WILL SAY THE CAVEAT, SOFTBANK OUT PUBLICLY AND OPENAI PUBLICLY REMAIN COMMITTED TO MOVING FORWARD WITH THE VENTURE. CAROLINE: THANK YOU. PRESIDENT TRUMP PLAN TO CURB AI
CHIP EXPORTS AIMS TO SIMPLIFY TO ENSURE AI DOMINANCE FOR THE UNITED STATES. THE PORTFOLIO MANAGER SAYS THERE'S A LOT OF MOVING PARTS RIGHT NOW, AND IT IS CRITICAL TO THINK ABOUT LONG-TERM ABOUT AI. HE'S HERE WITH US NOW APPEARED WE WERE JUST DISCUSSING ABOUT HOW MAYBE THE -- SHE IS WITH US NOW APPEARED WE WERE JUST DISCUSSING ABOUT HOW MAYBE THE LANDSCAPE IS CHANGING. HOW IS THIS BASED ON THE MATHS? >> WELL, THE DECISION RULES BEING MITIGATED BY THE TRUMP ADMINISTRATION WAS AN IMPORTANT STEP FORWARD, BECAUSE QUITE HONESTLY, THEY DID NOT MAKE SENSE TO LIMIT THE TECHNOLOGY, TO GO TO A WIDE SWATH OF COUNTRIES THAT HAVE REALLY COME IN MANY CASES, WERE OUR FRIENDS, NOT FOLLOW. AND SO THE QUESTION IS, WHAT COMES NEXT? AND WHAT ARE THE RULES THAT THEY WILL PUT IN PLACE TO HOLD THE STRATEGIC KIND OF LEAD THAT THEY PURSUE? CAROLINE: WHAT IS INTERESTING IS COME AS YOU SAY, COUNTRIES THAT WERE DEEMED ALLIES, ISRAEL, INDIA, SUDDENLY ON A TEAR TWO LEVEL, NOT AS ABLE TO ACCESS AS MANY SOPHISTICATED CHIPS THAT THEY WANTED. NOW WE COME TO THIS AWKWARDNESS
WHERE IT'S GOING TO BE SORT OF A CASE-BY-CASE BASIS, COUNTRY BY COUNTRY BASIS. MALAYSIA, WHERE ORACLE WANTS TO BE PUTTING A HUGE BASE US UP, FOR EXAMPLE, WHEN WE NEED CLARITY ON THAT, AND WHEN WILL WE SEE COUNTRIES AND COMPANIES NAVIGATE IT? DR. CRAWFORD: YEAH. THEY WILL USE IT ALMOST AS A BARTERING TOOL IN THESE TRADE NEGOTIATIONS, AND IT IS A STRONG BARTERING TOOL. I THINK, HOWEVER, THE ADMINISTRATION HAS BEEN VERY CAREFUL THAT WE HAVE TO LOOK AT OUR OWN STRATEGIC INITIATIVES AND STRATEGIES FOR STRATEGY, THAT WE CANNOT OVERREACH.
IN PART BECAUSE THERE IS A VIABLE COMPETITOR WITH HUAWEI. WE WANT TO PRETEND THAT NVIDIA IS A MONOPOLY GET IT IS NOT. HUAWEI HAS SHOWN AN INCREDIBLE PROWESS OVER THE LAST TWO MONTHS WHEN THEY'VE INTRODUCED THESE FANTASTIC TIPS, THAT THEY DO IN FACT COMPETE WITH NVIDIA.
IF WE PUSHED TOO FAR ON THIS, THERE IS AN ALTERNATIVE FOR THE MALAYSIAS TO MOVE FOR A DIFFERENT VENDOR. CAROLINE: SO WHEN IT ALREADY MAY COME FROM JENSEN HUANG, THAT I WANT TO NOT ONLY ACCESS MALAYSIA AND INDONESIA AND SOUTHEAST ASIA, I ALSO WANT TO SELL INTO CHINA, SHOULD HE BE ABLE TO? DR. CRAWFORD: YOU KNOW, I DO THINK WE ARE LOOKING AT THIS IN THE WRONG WAY, TO BE COMPLETELY FRANK.
LET'S THINK ABOUT DEEPSEEK. DEEPSEEK'S INNOVATION ACTUALLY IS HELPING OUR MODELS, AND FACEBOOK IS ADOPTING SOME OF THE INNOVATION THAT CAN MONITOR DEEPSEEK. ONE THING WE CANNOT FORGET IS THAT INNOVATION BEGETS INNOVATION, AND YOU CANNOT STOP THAT KIND OF LIFE CYCLE OF INNOVATION, AND IF WE SLOW INNOVATION IN CHINA, WE SLOW INNOVATION HERE AS WELL. SO, YOU KNOW, WHERE I THINK THIS SHOULD FOCUS ON IS IN FACT IP THEFT. MAKING SURE THAT IP ACROSS THE BOARD, NOT ONLY FOR DPU'S, BUT ANY KIND OF EQUIPMENT, WHETHER IT IS ROBOTICS OR MEDICAL EQUIPMENT, THAT IS NOT BEING STOLEN BY THE CHINESE, RIGHT? INSTEAD OF KIND OF FIGHTING OVER THE WIDGETS. I THINK WE LIKE TO THINK OF
THIS AS, YOU KNOW, ARE YOU FRIEND OR FOE? PERHAPS THERE IS SOMEPLACE IN THE MIDDLE WHERE WE CANNOT TREAT CHINA AS THIS ENEMY OF THE PEOPLE WHEN THEY REALLY ARE NOT. THEY, TOO, ARE INNOVATING AT A PACE THAT IS PROBABLY FASTER THAN WE ARE. CAROLINE: SO WHEN A CATL IS LOOKING TO LIST IN HONG KONG, AND U.S.-RESIDING INVESTORS ARE NOT ABLE TO ACCESS THAT, HOW DOES IT MAKE YOU FEEL COME AS A PORTFOLIO MANAGER, WHO WANTS YOU TO BE ABLE TO THRIVE IN INNOVATION WORLDWIDE? DR. CRAWFORD: YEAH. IT IS FRUSTRATING, BUT WHAT IS ALSO FRUSTRATING IS THAT CATL WANTED TO BUILD A FACTORY HERE A FEW YEARS AGO AND WAS STOPPED BY THE BIDEN ADMINISTRATION. THEY ACTUALLY WANT TO MOVE MANUFACTURING BACK TO THE U.S.
AND WEREN'T ABLE TO. SO THAT, TOO, IS FRUSTRATING, AS AN AMERICAN, TO HAVE, YOU KNOW, THAT THE INITIATIVES OF BRINGING MANUFACTURING BACK OF THESE TECHNOLOGIES TO THE U.S. IS BEING HINDERED, WHICH HOPEFULLY WILL STOP WITH THIS ADMINISTRATION COULD I THINK -- THIS ADMINISTRATION.
I THINK THE CATL, HOPEFULLY WE WILL BE ABLE TO ACCESS IT. THESE THINGS WILL CALM AND OUR HURDLES ALONG THE WAY WE WILL HAVE TO WORK THROUGH WITH THE CHINESE AND THE TRUMP ADMINISTRATION. CAROLINE: YOU WERE VERY CLEAR YOU DID NOT WANT THE AI DIFFUSION RULE, YOU FELT IT WAS HARMING MOST PEOPLE IN THIS ENVIRONMENT. WHAT THEN AS A PORTFOLIO MANAGER DO YOU DO IN HIS CURRENT LACK OF CLARITY, THE FACT THAT IT'S GOING TO BE CASE-BY-CASE? DO YOU THINK IT NVIDIA WILL COMPETE, WILL BE ABLE TO COMPETE WELCOME ACCESS MARKETS? ARE YOU ON THE OPTIMISTIC SIDE OF THINGS? DR. CRAWFORD: I THINK IT ONLY MAKES SENSE TO
ALLOW FOR OUR TECHNOLOGY GIANT, NVIDIA, WHO, YOU KNOW, QUITE HONESTLY, IS THE PRIDE OF OUR NATION AT THIS POINT, RIGHT? THEY ARE DRIVING FORWARD THE AI REVOLUTION. AND SO I DO THINK THAT, OVER TIME, I THINK BY SEPTEMBER, WE WILL HAVE VERY CLEAR BOUNDARY CONDITIONS AROUND WHERE WE CAN AND WHAT WE CAN OR CANNOT SHIP. CAROLINE: AND IP WILL BE PROTECTED, DO YOU THINK? DR. CRAWFORD: I HOPE IP WILL BE PROTECTED. IP SHOULD BE PROTECTED ON A GO FORWARD BASIS, ACROSS ALL INDUSTRIES, WITH A COMMITMENT FROM THE CHINESE GOVERNMENT, TO MAKE SURE THAT THAT IS IN FACT THE CASE, BECAUSE WE CAN'T HAVE THIS INDUSTRIAL EXPERT KNOWLEDGE ACCORDING ALL OVER THREATS TO THE INDUSTRIES.
SO I FEEL VERY OPTIMISTIC FOR THE U.S. AND FOR CHINA THAT WE WILL SORT THROUGH THIS, BECAUSE, YOU KNOW, WE ARE A GLOBALIZED WORLD, AND WE CANNOT PULL BACK FROM THAT. WE CAN BRING MANUFACTURING BACK HERE, WHICH I WHOLEHEARTEDLY BELIEVE IT, BUT IN A CONTROLLED WAY. CAROLINE:
CAROLINE: TIME NOW FOR TALKING TECH. SHARES OF XIAOMI FALLING, AFTER THE COUNCIL ORDERED THE ULTRA-ELECTRIC VEHICLES OVER FALSE ADVERTISING RELATED TO THE CAR'S CARBON FIGHTER AIR DUCT -- CARBON FIBER AIR DUCT. NISSAN CUTTING 11,000 MORE JOBS THAN PREVIOUSLY ANNOUNCED.
THE COMPANY ANNOUNCED RESTRUCTURING PLANS IN NOVEMBER. THEY WERE PLANNING TO CUT 9000 AT THE TIME. THAT IS AFTER WEAK SALES IN THE U.S.
NEW ZEALAND'S PRIME MINISTER SAID A PROPOSAL TO BAN CHILDREN UNDER THE AGE OF 16 FROM ACCESSING SOCIAL MEDIA WILL BECOME PART OF THE GOVERNMENT'S WORK PROGRAM, PROTECTING YOU FROM BULLYING. APPROVED -- IF APPROVED, RESTRICTIONS COULD BECOME LAW BEFORE THE COUNTRY'S 2020 SIX ELECTION. COMING UP, PRESIDENT TRUMP SPOKE WITH APPLE CEO TIM COOK EARLIER TODAY. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." LET'S GET A CHECK ON THE
MARKETS. WE ARE IN FULL RALLY MODE. TRADE TENSIONS DIAL BACK A NOTCH AS WE SEE NEW TARIFFS IN A MUCH LOWER RATE BETWEEN CHINA AND THE U.S.. 30% TARIFFS ON CHINESE GOODS INTO THE U.S.
IN JUST 10% ON U.S. GOODS GOING INTO CHINA. A 90 DAY REPRIEVE. 4.7 PERCENT HIGHER ON THE MAGNIFICENT SEVEN. COMPANIES MANAGED TO PUSH HIGHER. SEMICONDUCTORS UP 6%. THE BEST DAY SINCE APRIL 9 WHEN THEY RALLIED HARD ON THE FACT THAT SOME SEMICONDUCTORS GOT REPRIEVE ON THE ELECTRICAL -- ON THE ORIGINAL RECIPROCAL. APPLE UP MORE THAN 5%, 100 $51 BILLION IN MARKET CAP.
ALL OF THIS AS WE HEAR FROM PRESIDENT TRUMP EARLIER AS PART OF HIS REMARKS ON TRADE. HE DID SAY HE SPOKE WITH APPLE CEO TIM COOK. YOURS WHAT THE PRESIDENT SAID. PRES. TRUMP: I SPOKE TO TIM COOK AND I THINK
HE WILL UP HIS NUMBERS. $500 BILLION. HE WILL BE BUILDING A LOT OF PLANTS IN THE UNITED STATES FOR APPLE AND WE LOOK FORWARD TO THAT. I LOOK FORWARD TO THAT. CAROLINE: LET'S TALK ABOUT APPLE THE REMAINING CHALLENGES THAT REMAIN.
BLOOMBERG'S DANA WOLLMAN IS WITH US. THEY WILL BE FACING 20% TARIFFS ON AN IPHONE SHIP FROM CHINA. THE HEADWINDS ARE NOT STOPPING. THE MARKET IS MORE RELIEVED.
DANA: THIS WOULD SIGNAL SOME RELIEF BUT THIS IS -- THIS DOES NOT EXACTLY ILL NATE TARIFFS. UNIT -- THIS DOES NOT EXACTLY ELIMINATE TARIFFS. THE RAMP-UP WILL BE GRADUAL AND WILL NOT NECESSARILY HAPPEN IN TIME FOR THE BIG IPHONE LAUNCH THIS FALL. CAROLINE: AND MARK GURMAN HAS BEEN OUT SAYING MAYBE THEY HAVE TO PROTECT MARGINS. LOOKING AT A PRICE INCREASE, HOW THEY ENACT THAT, WHETHER IT IS A MORE COSTLY IPHONE WERE MORE ABOUT THE DATA. WHAT ARE YOU HEARING IN TERMS OF HOW THEY INNOVATE IN THIS CONTEXT AS WELL? >> IT FEEL SAFE TO ASSUME APPLE IS CONSIDERING PRICE HIKES.
EVERY OTHER CONSUMER ELECTRONICS COMPANY HAS HAD TO IMPOSE TARIFFS. I THINK YOU'LL SEE MORE IN THAT SPACE IN THE CONSUMER ELECTRONICS INDUSTRY. APPLE, IF THESE PRICE HIKES DO COME TO BEAR, THEY'LL BE COMING AT A TIME WHEN APPLE IS EXPECTED TO ANNOUNCE A NOTICEABLY REDESIGNED IPHONE, MORE THAN JUST BUMPS, MORE THAN JUST SOFTWARE UPGRADES. SOMETHING THAT MIGHT PERSUADE PEOPLE TO UPGRADE. IT WOULD BE INTERESTING TO SEE
HOW MUCH APPLE FRAMES ANY SORT OF POTENTIAL HIKE AROUND TECHNOLOGY IMPROVEMENTS AND DESIGN IMPROVEMENTS. I DO NOT EXPECT THEM TO MENTION TARIFFS IN ANY SORT OF BIG PRESENTATION. CAROLINE: THE REAL REDESIGNS ARE COMING IN 2027? THAT IS WHEN WE GET CURVATURE AND FOLDABLE? DANA: 2027 IS THE YEAR YOU CAN SEE MORE AMBITIOUS APPLE DESIGNS AND WE ARE TALKING MORE THAN JUST A SLIMMED-DOWN IPHONE.
THINGS LIKE A FOLDABLE PHONE, ENTRY INTO HOME ROBOTICS. THERE IS AN INTERESTING AND POSSIBLY UNFORTUNATE GAP BETWEEN THE PRESENT AND WHEN APPLE WILL FINALLY BE ABLE TO CATCH UP IN TERMS OF ITS ABILITY TO MANUFACTURE AND MARKET THESE DEVICES. CAROLINE: AND BRING GENERATIVE AI TO BEAR AS WELL. DANA WOLLMAN ON ALL OF THE
LATEST OUT OF APPLE. LET SHIFT TO ANOTHER MAGNIFICENT SEVEN STOCK. IT IS RISING LONG WITH THE REST OF THE MARKET. THE STOCK HAS FACED SO MUCH VOLATILITY. ELON MUSK HAS FACED\FROM HIS DESK HAS FACED\FROM HIS -- HAS FACED BACKLASH AND HE IS READY -- AND IS WRITING -- "HE NEEDS TO REALIZE THAT BEING BOLD DOES NOT JUST BEEN PLAYING FAST AND LOOSE ON SAFETY." AND YOU BRING US THE EXAMPLES
WHERE YOU THINK ELON MUSK HAS BEEN PLAYING FAST AND LOOSE WITH SAFETY? >> MY CRITIQUE IS ABOUT THE CULTURE HE IS ESTABLISHING AT TESLA. WHAT WE KNOW ABOUT SAFETY CULTURE AND EVERY COMPANY THAT HAS DECIDED TO MAKE SAFETY IT'S NUMBER ONE PRIORITY IS THEY DEEMPHASIZE HIERARCHY AND MAKE IT SAFE TO DISSENT. PHYSICAL SAFETY FROM YOUR CUSTOMERS AND EMPLOYEES COMES FROM PSYCHOLOGICAL SAFETY AND YOUR EMPLOYEES BEING WILLING TO SAY WE MADE A MISTAKE AND WE NEED TO STOP THIS.
IF THERE'S ANYTHING YOU CAN SEE ABOUT THE WAY MUSKA RUNS EVERYTHING IT IS HE IS INCREDIBLY INTOLERANT OF DISSENT, OF PEOPLE BENEATH HIM SAYING I DO NOT THINK THIS IS RIGHT. WE HAVE SEEN A MULTIPLE AMOUNT OF LAWSUITS AGAINST TESLA FROM EMPLOYEES SINGLY BEEN RETALIATED AGAINST FOR RAISING SAFETY CONCERNS. BEING A SAFE COMPANY BECOMES ALMOST IMPOSSIBLE. CAROLINE: YOU TAKE ECHOES FROM THE PAST WITH BOEING AND THE ISSUES THAT COMPANY HAS FACED IN A SIMILAR TIME OF GOING FOR GROWTH OVER POTENTIAL SAFETY CALLS IT A CLEAR CHAIN OF COMMAND. >> BOEING USED TO BE THE SAFEST OF ALL AIRLINE COMPANIES BECAUSE THEY HAVE THIS CULTURE DOMINATED BY ENGINEERS WHERE WHEN PEOPLE THOUGHT THERE WAS A SAFETY CONCERN EVERYTHING ELSE WOULD GO BY THE WAYSIDE UNTIL IT WAS FIXED AND WHERE YOU HAD COMPLETE FREEDOM AS AN EMPLOYEE AT BOEING TO GO TO ANYONE AND SAY WE HAVE A PROBLEM AND THIS IS REALLY IMPORTANT.
WHEN BOEING ABANDON THAT CULTURE TO PURSUE SHORT-TERM SHAREHOLDER RETURNS WE FOUND OUT THERE WERE SHORT-TERM RETURNS FOR THE WIFE ALTHOUGH NOT RECENTLY -- THERE WERE SHORT-TERM RETURNS FOR A LITTLE WHILE BUT THE SAFETY REPUTATION OF BOEING THAT HAVE BEEN CULTIVATED FOR A CENTURY WAS THROWN AWAY BECAUSE THERE AIRPLANE STARTED CRASHING WHICH THEY HAD NEVER DONE. ED: THERE ARE NOT -- CAROLINE: THERE ARE NOT MUTUALLY EXCLUSIVE OUTCOMES. YOU HIGHLIGHT A COUPLE OF KEY EXECUTIVES IN THE PAST, PARTICULAR IN THE MINING FIELD THAT ONE FOR SECURITY AND IT BENEFITED THEM.
>> THE MOST FAMOUS EXAMPLE IN THE UNITED STATES IS PAUL O'NEILL AND ALCOA WHO SAID WE WILL MAKE THIS THE SAFEST COMPANY IN THE WORLD. WHEN HE FIRST ANNOUNCED THIS ONE OF HIS INVESTORS SAID THEY HAVE APPOINTED A HIPPIE TO RUN THE COMPANY AND HE WILL DESTROY IT. WHILE HE WAS CEO THE VALUE OF THE COMPANY WENT UP BY A FACTOR OF NINE. WHAT HE REALIZED IS THERE'S NO SUCH THING AS A WELL-RUN UNSAFE FACTORY. THERE IS NO SUCH THING AS WELL-RUN UNSAFE MINE. PSYCHOLOGICAL SAFETY HELPS YOU ON SAFETY ISSUES AT THE COMPANY AS A WHOLE THEY ALSO HELP YOU ON INNOVATION.
IT IS THE SINGLE DETERMINANT FACTOR IN DETERMINING THE SUCCESS OF A TEAM IS HOW PSYCHOLOGICALLY SAFE THE PEOPLE FEEL. WHEN YOU TAKE AWAY YOU TAKE AWAY EVERYTHING. CAROLINE: YOU REFERENCE A LOT ABOUT THE PUSH INTO THE TAXI SPACE. THIS IS THE MOMENT ELON MUSK
NEEDS TO BE FOCUSED ON SAFETY. HE HAS BEEN OUT RUN BY LOCAL COMPETITIONS. YOU HAVE CHINA SHOWING GROWTH WHEN IT COMES TO ROBOTAXIS AND AUTONOMOUS VEHICLES. HE IS NOT RUNNING AHEAD OF
HIMSELF IN TERMS OF PUSHING FOR INNOVATION AHEAD OF SAFETY. YOU FEEL THERE HAS BEEN MOMENTS WHEN THAT HAS OCCURRED? >> THERE HAVE BEEN MOMENTS. BEFORE ROBOTAXIS TESLA'S WERE SAFE CARS IF YOU'RE IN A CRASH. THE IDEALLY SAFE CAR IS ONE
THAT NEVER GETS IN A CRASH IN THE FIRST PLACE AND TESLA'S NOT DO NEARLY AS WELL. AUTOPILOT DOES NOT MAKE YOU SAFER. IT MIGHT MAKE YOU LESS SAFE BECAUSE IT DECREASES DRIVER ATTENTION. WE WERE STARTING TO SEE CONCERNS ABOUT THAT WITH TESLA. GOING FORWARD, TESLA'S NOT THE LEADER IN AUTOMATED DRIVING. WAYMO IS. THEY ARE VASTLY AHEAD TECHNOLOGICALLY.
TESLA'S PROMISES OF WHAT THEY ARE SAYING THEY WILL OFFER IF THEY WANT TO OFFER ANYTHING LIKE THAT SUCCESSFULLY, THEY HAVE TO BE AT LEAST AS SAFE AS WAYMO AND PROBABLY BETTER. THAT WILL BE VERY DIFFICULT TO DO IF THEY DON'T HAVE A CULTURE WHERE EVERY SINGLE PERSON AT TESLA FEEL SAFE TO SAY ELON MUSK, WE ARE NOT A SAFE COMPANY. CAROLINE: DO YOU HAVE THE CONFIDENCE THE CULTURE WILL ALLOW FOR THAT? THUS FAR THE CORPORATE GOVERNANCE IS SAYING WE ARE STIFFING BY ELON MUSK AND ELANA ONLY -- AND ELON MUSK ONLY NOT EVEN ASSESSING WHETHER ANYONE COULD REPLACE HIM. >> I DON'T AT ALL. I WOULD NEVER UNDERESTIMATE
ELON MUSK TO WORK MIRACLES. THERE A TRACK RECORD OF CEOS THAT HAVE TRANSFORMED THE CULTURE OF THEIR COMPANIES. O'NEILL IS ONE EXAMPLE. THE THING YOU WOULD SAY ABOUT THEM AS THEY DO NOT OPERATE ANYTHING LIKE ELON MUSK. THEY EMPHASIZE THE TEAM IS MORE IMPORTANT THAN THEMSELVES, THEY EMPHASIZE HIERARCHY IS THE DEATH OF SUCCESS.
THIS IS NOT THE WAY ELON MUSK HAS OPERATED ANYWHERE HE HAS BEEN IN THE LAST 10 YEARS. YOU CAN MAKE REAL QUESTION ABOUT WHETHER EARLY ELON MUSK OPERATED LIKE THAT BUT WHEN WE STATE -- THE ONE WE SEE TODAY DOES NOT. CAROLINE: THANK YOU FOR JOINING US FROM BLOOMBERG OPINION. NOW BREAKING NEWS. WE ARE REPORTING THE HEADLINE
THAT HAMAS HAS RELEASED ISRAELI AMERICAN HOSTAGE ALEXANDER. IT WAS A HASTILY ANNOUNCED MOVE AHEAD OF DONALD TRUMP'S VISIT TO THE MIDDLE EAST. HOURS EARLIER WE TO KNOW ISRAEL WAS PLANNING ON SENDING ITS NEGOTIATING TEAM TO QATAR ON TUESDAY TO SECURE THE RELEASE OF THE REMAINING HOSTAGES IN GAZA. COMING UP, INVESTOR JOINS US TO DISCUSS HOW THIS EASING OF TRADE TENSIONS WE ARE SEEING BETWEEN U.S. AND CHINA COULD IMPACT GLOBAL COMMERCE.
LOOKING AT A LIVE SHOT OF THE PRINCIPAL ROOM. CHECK OUT THE BLOOMBERG TECHNOLOGY PODCAST. THIS IS BLOOMBERG. NOW A BIT OF A REPRIEVE IN THE TRADE WAR BETWEEN CHINA AND THE UNITED STATES HAS PEOPLE TALKING. FLEX PORT CEO COMMENTING ON X SAYING GET READY FOR A SHIPPING BOOM. LET'S TALK MORE ABOUT THE
TARIFF REPRIEVE WITH CARTER REUM, COFOUNDER AND PARTNER OF VENTURE FIRM M13 FISH -- THE COMPANY IS HELPED BRANDS SHIFT THE SUPPLY AWAY FROM CHINA AND MAKE DECISIONS BASED ON THE TARIFF ENVIRONMENT. THEY MUST'VE HAD AN INTERESTING FEW MONTHS. CARTER: ABSOLUTELY. P AFTRA IS BUILDING THE AI BRAIN FOR E-COMMERCE COMPANIES.
THEY HAVE OVER 30,000 NON-CHINA SUPPLIERS ON THEIR PLATFORM. ABOUT 6000 OF THOSE IN THE U.S.. THEY HAVE DEFINITELY BEEN BUSY AND SEEN ABOUT A FIVE TIME INCREASE AND THINGS WANTING TO REASSURE -- TO RESHORE. CAROLINE: HOW ARE THEY HELPING STARTUPS NAVIGATE THE FACT THAT MAKING A PRODUCT IN THE U.S. IS LIKELY TO BE A LOT MORE
EXPENSIVE THAN IF THEY HAVE SOURCED FROM CHINA? CARTER: IT USED TO TAKE A FEW MONTHS TO RE-SHORE NOW YOU CAN UPLOAD A PHOTO OF YOUR PRODUCT YOU WERE PREVIOUSLY MAKING IN CHINA AND WITHIN TWO DAYS YOU CAN FIND THE BEST FACTORIES, THE VETTED FACTORIES IN THE U.S.. YOU CAN COMPARE COSTS BUT THIS IS WHERE THE POWER OF AI CAN TAKE SOMETHING THAT LITERALLY TOOK MONTHS AND DO IT IN DAYS. CAROLINE: HAVE WE SEEN SLIGHT ELASTIC NATURE AND THE DESIRE FOR COMPANIES TO RESHORE AND THEY WILL SWALLOW THE MARGIN HIT OR THEY WILL PASS ON THAT INCREASED COST TO THEIR USER BASE? CARTER: RIGHT NOW THERE IS A LOT OF UNCERTAINTY AND WITH TODAY'S NEWS IT GIVES PEOPLE A REPRIEVE. ONE THING EVERY BRAND OR COMPANY REALIZES YOU HAVE TO HAVE MULTIPLE OPTIONS IN YOUR SUPPLY CHAIN. TO BE DECIDED ON THE COST STRUCTURE AND WHETHER THEY PASS IT ALONG.
I THINK EVERYONE IS PANICKED AND TRYING TO MAKE SURE HOW THEY HAVE ALTERNATIVE SOURCES AND THERE IS A LOT OF GREAT SOURCES AND FACTORIES IN THE U.S. IN A LOT OF PLACES OUTSIDE CHINA. CAROLINE: LET'S TALK ABOUT THE UNDERLYING TECHNOLOGY OF HOW BY TAKING A PHOTO YOU ARE TO ENSURE YOU CAN MANUFACTURE CLOSER TO HOME. HOW DOES IT WORK? CARTER: THEY HAVE OVER 30,000 VETTED FACTORIES. THEN YOU CAN USE AI AND REACH OUT TO THOSE FACTORIES WHILE YOU ARE SLEEPING.
YOU CAN HAVE THEM NEGOTIATE, DO SAMPLES. THERE ARE A TON OF GREAT FACTORIES ALL OVER THE WORLD. CAROLINE: LET'S TALK ABOUT THE REST OF YOUR PORTFOLIO. YOU CLEARLY HAVE PIETRA SEEN THE UPSIDE. HAVE THE REST MANAGED TO STEER IN THIS MOMENT OF UNCERTAINTY? WE SEE TARIFF REPRIEVE FOR 90 DAYS BUT MAYBE IT IS JUST 90 DAYS. CARTER:
WE DO NOT INVEST IN HARDWARE COMPANIES, WE DO NOT INVEST IN COMPANIES DIRECTED BY THE TARIFFS. A LOT OF COMPANIES ARE AFFECTED INDIRECTLY. SO MANY COMPANIES ARE OBSESSING ABOUT AI AND HOW TO SUPERCHARGE THEIR CURRENT BUSINESS MODELS OR CREATE NEW BUSINESS MODELS. WE HAVE BEEN FORTUNATE WE HAVE NOT BEEN IMPACTED LIKE A LOT OF OTHERS. CAROLINE: IS THE RESILIENCE THERE TO
COMMIT TO INVESTING IN GENERATIVE AI, TREE ORIENTATING THE BUSINESS WHERE MANY ARE TRIED TO MAKE AND'S MEET BY TRYING TO UNDERSTAND THE LATEST HEADLINE IMPACT. ARE YOU WILLING TO INVEST IN SOME OF THE LATEST STARTUPS IN THIS ENVIRONMENT? CARTER: AS A VENTURE CAPITALIST YOU TAKE A LONG-TERM TIME HORIZON. WE ARE LOOKING EIGHT OR 10 YEARS OUT. OBVIOUSLY IT IS EXCITING TIME. AI IS DISRUPTING SO MUCH. EVERYONE IS TALKING ABOUT THE TECHNOLOGY BUT WE OBSESS ABOUT WHAT ARE THE IMPLICATIONS OF THAT TECHNOLOGY? WHAT IS THE NEXT BILLION-DOLLAR COMPANY THAT WILL BE RUN BY THREE PEOPLE? IT IS AN EXCITING TIME. THERE IS A LOT OF CHANGE AND
THAT WILL NOT LET UP. THERE IS A LOT OF OPPORTUNITY. CAROLINE: CARTER REUM, PARTNER AND COFOUNDER OF M13. GREAT TO HAVE YOU ON. COMING UP NEXT, HOW ZAIDI ABOUT TRADE WAR'S IS EXPECTED TO AFFECT THE TV -- HOW ANXIETY ABOUT TRADE WAR'S IS EXPECTED TO AFFECT THE TV NETWORKS AS THEY ARE PRESENTING THEIR CAROLINE: BREAKING NEWS ON AI VALUATIONS. AS THE WALL STREET JOURNAL IS CURRENTLY REPORTING PERPLEXITY IS IN TALKS TO RAISE $500 BILLION. BACK IN MARCH BLOOMBERG WAS REPORTING PERPLEXITY WAS AN EARLY TALKS FOR FUNDING AND 18 BILLION-DOLLAR VALUATIONS.
MAYBE PULLING BACK OF THE BIT. WE'LL KEEP YOU ABREAST OF THE LATEST FUNDRAISING. LET'S SHIFT TO THE WORLD OF MEDIA COMPANIES. THEY ARE SHOWCASING THEIR NEW TV LINEUPS TO ADVERTISERS BUT ONLY 20% PLAN TO ACTUALLY INCREASE THEIR AD PURCHASES.
I AM ASSUMING IT IS BECAUSE OF COMPLETE ANXIETY AROUND THE ECONOMY. >> THE WAVE OF ECONOMIC UNCERTAINTY ACROSS THE BOARD IS MAKING FOLKS HESITANT TO COMMIT AD DOLLARS FOR THE 12 OR 14 MONTHS. NOT KNOWING WHAT COULD HAPPEN TOMORROW, WHAT COULD HAPPEN IN THE MONTH. IT IS BROADLY EXPECTED THERE WILL BE A PULLBACK IN THOSE COMMITMENTS GOING TO THE UPFRONTS THIS WEEK BECAUSE PEOPLE DO NOT KNOW WHAT WILL HAPPEN TO THEIR BUSINESS AND THEY DO NOT KNOW WILL HAPPEN TO THE BROADER MARKET. CAROLINE: WE DID HEAR SOME ENTHUSIASM, PARAMOUNT HAD SAID WE ARE HEARING REALLY GOOD THINGS IN CONVERSATIONS.
WHO ARE THE MAIN COMPANIES RIGHT NOW? IT IS LIKES OF PARAMOUNT, WE HAVE FOX, WE HAVE NBC. WHO ARE THEY TRYING TO TAKE MONEY FROM? AISHA: DISNEY IS ANOTHER ONE. YOU ALSO HAVE SOME OF THE STREAMERS. I THINK A LOT OF THE CONVERSATION WILL BE AROUND SPORTS. OVER THE PAST YEARS THERE HAS BEEN A DECLINE IN VIEWERSHIP ON CABLE BUT SPORTS HAS REMAINED STRONG. IF YOU WANT TO GET ADS NEXT TO THOSE PREMIUM SPORTS ON THE NBA OR NHL UP THAT IS WHERE WE WILL SEE STRENGTH IN THE COMPANIES THAT HAVE STRONG SPORTS PROGRAMMING.
CAROLINE: A PERFECT WAY WE CONTINUE THE CONVERSATION ABOUT THE SPORTS SIDE OF THINGS. LET'S LOOK AT THE FEATURES NBA -- NBC PEACOCK WILL BE OFFERING. WE WERE JUST HEARING HOW IT IS BASICALLY ALL ABOUT LIVE SPORTS. IT IS A GOOD TIME FOR PEACOCK, THEREFORE.
>> THEY JUST ANNOUNCED TODAY THEY HAD THIS BIG DEAL TO BROADCAST NBA GAMES, THEY STOLE THEM FROM TURNER, IT IS AN 11 YEAR DEAL. WHEN THE SEASON STARTS LATER WHEN YOU GO TO PEACOCK IF THERE IS A LIVE GAME THERE'LL BE A LITTLE WINDOW SHOWING THE GAME. YOU CLICK THROUGH THERE'LL BE ALL SORTS OF INTERACTIVE FEATURES. CELEBRITY CAMS, WATCH THE REACTION OF SOME OF THE CELEBRITIES IN THE AUDIENCE. USE AN AUGMENTED REALITY FEATURE THAT WILL SHOW YOU NOT JUST PLAYER NAMES AS THEY MOVE AROUND ON THE COURT BUT THEIR STATISTICS, IF THEY ARE TRYING TO MAKE A SHOT WHAT THE PERCENTAGES IS. THEY WILL HAVE A FEATURE CALLED A SCORECARD THAT IS A DAILY FANTASY CONTEST, NOT FOR REAL MONEY BUT YOU EARN POINTS AND THEY WILL HAVE A LEADERBOARD FOR THE VIEWERS SO YOU CAN IMAGINE A LOT OF EXCITEMENT THERE.
CAROLINE: UNLIKE SOME OTHER RIVALS LIKE DISNEY PLUS OR WARNER BROS., PEACOCK IS NOT PROFITABLE, RIGHT? >> PARAMOUNT PLUS AND ARE THE OUTLIERS. THIS IS THE DIRECTION THE INDUSTRY IS GOING.
IF YOU THINK ABOUT THE UPFRONTS, IN THE 60'S WHEN THERE WERE THREE BROADCAST CHANNELS, AND THIS WEEK ALL OF THE BIG NEWS WILL BE AROUND STREAMING. THE PEACOCK ANNOUNCEMENTS. FOX TALKED ABOUT THEIR NEW STREAMING THING CALLED FOX 1. TOMORROW WE ARE EXPECTING A BIG PRESENTATION FROM ESPN TALKING ABOUT THEIR STANDALONE STREAMING PRODUCT. IT IS ALL ABOUT STREAMING THESE
DAYS. CAROLINE: HAVE THEY GOT THE FEEDBACK THIS IS WHAT FANS WANT, THIS IS THE WAY FANS WILL ENGAGE. THEY WILL NOT JUST BE GOING TO TIKTOK TO GET THE LATEST NEWS ON SPORTS AND SEE THE ADS BEING ASSOCIATED WITH THE SPORTS CONTENT THERE INSTEAD. PART OF THE ESPN PRESENTATION WILL BE A LOT OF INTERACTIVE FEATURES AS WELL, BEDDING AND ALL OF THAT. SEEING THE SCREEN AS PEACOCK HAS PRESENTED IS TOO MUCH, THERE IS ALREADY A LOT GOING ON IN SPORTING EVENTS. WE HAVE THE OPTION NOT TO WATCH
THAT. STREAMING WAS A BIG DEAL AND AMAZON GOT THURSDAY NIGHT FOOTBALL. THE VIEWING NUMBERS WERE NOT QUITE AS GOOD AS THEY HAVE BEEN ON FOX. PEOPLE ARE GRADUALLY GETTING USE TO FINDING THEIR FAVORITE TEAMS ON STREAMING. CAROLINE: SPORTS RIGHTS IS WHERE IT IS AT, NOT TO MENTION THE SPORTS DOCUMENTARIES. GO AND CHECK OUT WHAT PEACOCK IS DOING ABOUT THE NBA.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. DON'T FORGET TO CHECK OUT OUR PODCAST. FIGHT IT ON THE TERMINAL AS WELL AS ONLINE ON APPLE, SPOTIFY, AND I HEART. MARKETS CURRENTLY SOARING. NASDAQ UP MORE THAN 3%.
WE ARE BACK OFFICIALLY ENABLE MARKET. THIS IS -- WE ARE BACK OFFICIALLY IN A BULL MARKET. THIS IS BLOOMBERG TECHNOLOGY. ♪
2025-05-16 08:06
