Latest / Bloomberg Intelligence / TikTok Seals Deal to Operate in the US After Years of Drama

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TikTok Seals Deal to Operate in the US After Years of Drama · Bloomberg Intelligence

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  Speaker 2: Through TikTok Chinese parents Byte Dance, they have closed the
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  Speaker 2: deal to transfer transfer parts of their US operations to
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  Speaker 2: American investors, securing the app's future in the US and
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  Speaker 2: avoiding a shutdown, which I know is big for the
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  Speaker 2: gajillions of folks that are on TikTok. Matthew Sheltenhelm joins
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  Speaker 2: us here. He's a media litigation analyst for Bloomberg Intelligence.
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  Speaker 2: He's based down there in Washington, d C. Matt talk
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  Speaker 2: to us about this deal for TikTok. This seems to be,
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  Speaker 2: I guess, probably the best outcome for certainly TikTok users.
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  Speaker 3: What do you what do you make of it?
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  Speaker 2: Yeah?
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  Speaker 4: I think this is getting to be the end of
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  Speaker 4: this long lingering drama, this big open question of how
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  Speaker 4: is this effective ban on this app going to play out?
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  Speaker 3: This looks like.
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  Speaker 4: A resolution that should keep TikTok continuing to operate in
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  Speaker 4: the United States and under a new structure that is
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  Speaker 4: majority owned in the US itself. I think there are
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  Speaker 4: real questions about whether this really adheres to all the
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  Speaker 4: limits in the law that Congress adopted. But at the
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  Speaker 4: same time, I'm not sure there's going to be much
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  Speaker 4: will to push back on that. At this point, it's
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  Speaker 4: looking like this might be the end of this saga,
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  Speaker 4: and it might let TikTok continue under this new structure.
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  Speaker 2: So one of the concerns I think a lot of
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  Speaker 2: folks kind of carried was didn't want the Chinese government
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  Speaker 2: to access have access to US residents data, their personal information.
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  Speaker 2: Do we have safeguards up for that?
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  Speaker 3: Now? How does this deal assure that?
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  Speaker 4: Well, so, you know, at the time that that this
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  Speaker 4: all played out in the courts, TikTok was pushing for
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  Speaker 4: for an arrangement called Project Texas, which had Oracle overseeing
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  Speaker 4: a lot of this data and and and protecting it
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  Speaker 4: from going, you know, in theory, back to China.
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  Speaker 3: Where where it would be at risk.
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  Speaker 4: What we see here is sort of a similar arrangement
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  Speaker 4: that they all ultimately settled on, where Oracle and other
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  Speaker 4: US investors run this new entity, and that new new
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  Speaker 4: entity would be in charge of overseeing US data under
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  Speaker 4: Oracle's leadership. So it's a very similar arrangement in that sense.
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  Speaker 4: The thing that that's sort of not clear here, though,
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  Speaker 4: is that the law also says there can't be any
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  Speaker 4: sort of operational relationship between the US entity and Byte Dance,
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  Speaker 4: and and there's when you read through the materials. We
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  Speaker 4: don't have the actual contracts here, but when you read
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  Speaker 4: through the press release, it doesn't say much at all
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  Speaker 4: about limiting any sort of operational relationship between the US
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  Speaker 4: entity and bytenance. That was really an animating concern. So
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  Speaker 4: I'm not sure that they've they've checked all the boxes
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  Speaker 4: in that sense, but there are protections here. This is
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  Speaker 4: a US entity under Oracle's leadership checking on this data.
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  Speaker 2: Does this arrangement have any precedent for some of the
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  Speaker 2: other Chinese companies that operate in the US. I'm thinking
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  Speaker 2: like an Ali Baba or a tencenter by do does
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  Speaker 2: that have any application?
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  Speaker 4: You know, it's it's really difficult to say that this
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  Speaker 4: is anything more than a one off. This this you know,
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  Speaker 4: the TikTok situation sort of drove a unique pushback. It
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  Speaker 4: was a strange situation where Congress was aligned on this
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  Speaker 4: and we had Democrats and Republicans joining together saying absolutely,
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  Speaker 4: we need to ban this app unless we fix this.
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  Speaker 4: And you haven't really seen anything like that for other
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  Speaker 4: apps come together, and especially with President Trump pushing back
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  Speaker 4: on this, that really discouraged lawmakers from stepping up on
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  Speaker 4: this issue. So I don't really see a lot of
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  Speaker 4: read through to other companies right away.
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  Speaker 2: So this new entity, it's got some private I guess
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  Speaker 2: equity our americ American investors, private equity investors.
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  Speaker 3: Is there? Where does a value a crew here? How
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  Speaker 3: does that work?
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  Speaker 2: Is there gonna be an IPO of this US business
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  Speaker 2: at some point or would just stay privately held?
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  Speaker 3: Do you think?
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  Speaker 4: You know, it's really tough to say. We've had some
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  Speaker 4: reporting that suggests there's a revenue share arrangement that you
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  Speaker 4: know goes you know, for all of the TikTok data
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  Speaker 4: going forward, but really unclear. You know, we don't have
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  Speaker 4: the terms of of this arrangement and how it plays
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  Speaker 4: out going forward, So a lot of missing details on
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  Speaker 4: questions like that, and we're kind of reading between the
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  Speaker 4: lines on the press releases. What we know here is
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  Speaker 4: this follows the law in the sense that byte Dance
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  Speaker 4: ownership falls below twenty perc as that was a key
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  Speaker 4: term in the law. It's not clear that it goes
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  Speaker 4: beyond that in you know, obviously byt Dance would still
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  Speaker 4: own the algorithm here, which was a big driver. And
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  Speaker 4: so this new entity doesn't own, you know, the most
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  Speaker 4: valuable piece of this business. So that you know that
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  Speaker 4: definitely limits you know, future returns for this new entity.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 3: Let's get back to some stocks.
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  Speaker 2: Intel shares pluned about fifteen percent after Chief executive officer
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  Speaker 2: lipboot Ten gave a lackluster forecast and warned that the
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  Speaker 2: chip maker was struggling with manufacturing problems.
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  Speaker 3: Let's get some more analysis on that. Angelo Zino joins us.
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  Speaker 2: He's a senior vice president equity analyst for cfr A Research.
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  Speaker 2: Joining us via zoom here. Angel talk to us about
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  Speaker 2: Intel the stocket had such a twelvemonth ride here. Now
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  Speaker 2: it's pulling back on some I guess some guidance that
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  Speaker 2: was a little lesson where the street wanted.
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  Speaker 5: Yeah, so thanks for having me, and you're absolutely right.
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  Speaker 5: I mean, i'd say that the biggest takeaway here is
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  Speaker 5: absolutely the guidance and listen, it's the biggest issue is
• 6:26
  Speaker 5: actually not a demand issue. They're finally actually seeing improving
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  Speaker 5: demand for their products. The bigger issue is that they
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  Speaker 5: are supply constrained in many respects, and that's problematic. A
• 6:37
  Speaker 5: lot of this is being self inflicted in the sense
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  Speaker 5: that they were, you know, many respects, quote flat footed,
• 6:42
  Speaker 5: didn't have the inventory to really meet that the expected
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  Speaker 5: higher demand here going into the first half of the year,
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  Speaker 5: so you know, they're going to have to be some
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  Speaker 5: adjustents being made here. The key really is going to
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  Speaker 5: be the recent ramp or unveiling of their eighteen A technology.
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  Speaker 5: We're going to have to see some yield improvements there
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  Speaker 5: and the hope is that results in better supply as
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  Speaker 5: we go into the second half of the year and
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  Speaker 5: also potentially announced to new external customers later in the year.
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  Speaker 6: And of course we're setting up for what's going to
• 7:16
  Speaker 6: be a gigantic week of earnings. It typically gets a
• 7:20
  Speaker 6: super busy around that now, and of course we've got
• 7:23
  Speaker 6: big tech reporting to Tesla Metal and Microsoft Apple. How
• 7:28
  Speaker 6: high is the bar right now? Because I think about
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  Speaker 6: what happened with the banks, and you know, by and
• 7:33
  Speaker 6: large they came in when in with decent results, but
• 7:36
  Speaker 6: because some areas were not as good as had been anticipated,
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  Speaker 6: they didn't get the reception that they normally would have.
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  Speaker 7: Yeah.
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  Speaker 5: No, I think that's a good question, And listen, I
• 7:46
  Speaker 5: think it depends on the name we're talking about in
• 7:48
  Speaker 5: this instance. Like if you were to ask me about
• 7:50
  Speaker 5: a name like Alphabet, which is you know, more than
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  Speaker 5: double off its April lows and you know it's coming
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  Speaker 5: on here really really hot, I'd say, is very little
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  Speaker 5: margin for or they better throw out some Gemini three
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  Speaker 5: numbers that are just really eye popping in many respects.
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  Speaker 5: But when we start thinking about a lot of the
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  Speaker 5: other megacap tech names, I think a good one would be,
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  Speaker 5: you know, a name like a Microsoft Valuations there I
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  Speaker 5: think are really enticing. At this point in time, it's
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  Speaker 5: been a relative underperformers since they've reported Q three results.
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  Speaker 5: Expectations have actually gone up so that the you know,
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  Speaker 5: we're looking at fairly enticing valuations across certain names. A
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  Speaker 5: Metas I think another good example where it seems like
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  Speaker 5: there's a lot of bad news baked into the name.
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  Speaker 5: So it all depends on the name we're looking at it.
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  Speaker 5: At this point in time, I would say, you know,
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  Speaker 5: when we look across the board of Big Tech, I'd
• 8:39
  Speaker 5: say the most important thing, or I'd say the one
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  Speaker 5: item that everybody has to look out for is the
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  Speaker 5: cap X targets here for this upcoming quarter and for
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  Speaker 5: the upcoming year. And the biggest reason I say that
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  Speaker 5: is we've got so many bottlenecks going on, you know,
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  Speaker 5: component price increases. It'll be interesting to see how much
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  Speaker 5: of an increase we get, you know, from these Cyperscollers Angela.
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  Speaker 2: As it relates to Intel, where is the problem in
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  Speaker 2: the getting enough supply the supply chain issue? Except we
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  Speaker 2: hear from others other than Intel as well, what's going
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  Speaker 2: on out there?
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  Speaker 5: I mean, I think, you know, it depends in many instances,
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  Speaker 5: but you know, the biggest bottleneck across the supply chain
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  Speaker 5: right now is absolutely the memory bottlenecks, right I mean,
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  Speaker 5: we've seen it in the stock prices for many of
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  Speaker 5: these stories related names. But you kind of look at
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  Speaker 5: the kind of the shift towards high bandwidth memory, the
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  Speaker 5: greater memory that's needed as we shift, especially from high
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  Speaker 5: band with memory two three to high band with memory
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  Speaker 5: four as Reuben launches in the middle of this year,
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  Speaker 5: there is you know, there is a ton of demand
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  Speaker 5: out there for memory and there's just not enough supply
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  Speaker 5: out there, so it's going to result in you know,
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  Speaker 5: we think a number of issues in areas, you know,
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  Speaker 5: specifically across the more cyclical areas in the markets like
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  Speaker 5: like PCs and smartphones where they may not even be
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  Speaker 5: able to get the actual chips in certain instances. As
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  Speaker 5: far as the AI server demand is concerned, though, you're
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  Speaker 5: going to see pricing hikes, and again that's going to
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  Speaker 5: have an impact on these hyperscalers and likely need for
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  Speaker 5: them to increase spend if they want to sustain some
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  Speaker 5: of these cloud type growth numbers.
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  Speaker 6: Angela, you said you're going to watch for Capex announcements,
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  Speaker 6: and that's kind of been the theme for the last
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  Speaker 6: couple of earnings cycles. How much more increases are we
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  Speaker 6: going to see in these cavex budgets or have the
• 10:31
  Speaker 6: companies pretty much telegraphed what they need to.
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  Speaker 3: Again, I think it depends on the name.
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  Speaker 5: So you know, I think Microsoft did a really good
• 10:39
  Speaker 5: job in kind of ripping off the band aid last
• 10:41
  Speaker 5: quarter in terms of saying, hey, listen, we're going to
• 10:44
  Speaker 5: go from moderating our CAPEX spend to actually accelerating the
• 10:48
  Speaker 5: investments that are needed in throw out exact numbers. But
• 10:51
  Speaker 5: the street is, you know, pretty much they understand that
• 10:56
  Speaker 5: Microsoft is probably going to have to continue to increase
• 10:59
  Speaker 5: their spend because of the elevated demand on the cloud side.
• 11:03
  Speaker 5: I will say this from ours and from my understanding,
• 11:07
  Speaker 5: I would say there's probably at least five to ten
• 11:10
  Speaker 5: percent at the very least upside or need to when
• 11:15
  Speaker 5: you look at the CAPEX numbers for a meta and
• 11:18
  Speaker 5: an alphabet, where you need to at least boost the
• 11:20
  Speaker 5: number the Street numbers out there by at least five
• 11:22
  Speaker 5: to ten percent, And hopefully that's something that's well understood
• 11:27
  Speaker 5: in the markets.
• 11:28
  Speaker 3: Stay with us more from Bloomberg Intelligence coming up after this.
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  Speaker 6: Big Tech moves ahead, plows ahead, and China is now
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  Speaker 6: saying to its tech firms, its homegrown tech firms, get ready,
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  Speaker 6: you can buy some Nvidia H two hundred chips.
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  Speaker 3: Nice. Okay, that's good for video, Maybe.
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  Speaker 6: It's good for in video, it's good for in vidio sales.
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  Speaker 6: And I mean, does in video then pay a portion
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  Speaker 6: of that to the US government?
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  Speaker 3: Ah, that's right? Is that part of the deal. Let's
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  Speaker 3: ask ed Ludlow.
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  Speaker 6: He is b Tech's co anchor and he joins US
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  Speaker 6: now from San Francisco, And is this the chip that
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  Speaker 6: the company in video would need to share some of
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  Speaker 6: the proceeds with the US government on?
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  Speaker 8: That's the agreement on the US government side. And you
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  Speaker 8: guys summarized it really well, because the biggest consideration and
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  Speaker 8: hold up on this hasn't even really been the US government.
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  Speaker 8: It's been well, do the Chinese government even want to
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  Speaker 8: allow in Vidia to put the H two hundred into China?
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  Speaker 8: Two things, you know, when I speak to sources on
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  Speaker 8: the White House side, they always caution, wait until we
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  Speaker 8: actually see some chips up and running in China. Right now,
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  Speaker 8: this is just negotiation in the public forum and on paper.
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  Speaker 8: But when it comes to this sort of revenue sharing
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  Speaker 8: agreement with the US government, in Vidia's position has always
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  Speaker 8: been that they ad buide by US laws. And when
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  Speaker 8: I spoke to the CFO and Video, her point was,
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  Speaker 8: we're a publicly traded company in the US, and until
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  Speaker 8: there is a codified mechanism that allows Nvidia to share
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  Speaker 8: revenues with the US government, she is bound by the
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  Speaker 8: rules of sarbainez Oxley in the SEC. And so that
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  Speaker 8: part is still kind of missing as well. But our
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  Speaker 8: reporting on this overnight did move in VideA shares and
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  Speaker 8: also TSMC's eighty rs, because this is apparently a fifty
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  Speaker 8: billion dollars addressable market that for Nvidia's currently zero. But
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  Speaker 8: also there's the reporting that they have been ramping up
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  Speaker 8: production capacity with TSMC in anticipation of getting the green.
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  Speaker 2: Light, and I know investors have effectively removed all Chinese
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  Speaker 2: related revenue from the forecast for it in video is there.
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  Speaker 2: What's the point where they start putting that back in there.
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  Speaker 8: I'd wager that they've remodeled already a little bit. I mean,
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  Speaker 8: when we were in Vegas to the beginning of the month,
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  Speaker 8: Bloombergsy and King was sat next to me ten feet
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  Speaker 8: from Jensen Huang, the CEO of and Video, and said,
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  Speaker 8: you told us about the five hundred billion dollar figure
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  Speaker 8: over the next five fiscal quarters that assumes zero revenue
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  Speaker 8: from China. Could that number get bigger? And Gentsmong's answer
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  Speaker 8: was yes, it could get bigger, in particular because we
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  Speaker 8: think we might get some revenues from the H two
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  Speaker 8: hundred in China. So from that point in early January,
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  Speaker 8: you'd expect the cell side at least to start trying
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  Speaker 8: to calculate something. But very difficult because again this is
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  Speaker 8: a sort of tip for tap behind closed doors at
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  Speaker 8: the moment, and no H two hundred has moved into Chinese.
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  Speaker 6: It's all very theoretical right now. No H two hundred
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  Speaker 6: has actually moved. Everyone's still negotiating everything. What about the
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  Speaker 6: H twenty processor it's less powerful? Yeah, well you know
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  Speaker 6: I had to look these up, but the H twenty
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  Speaker 6: processors is less powerful. But is it still useful to
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  Speaker 6: Chinese tech companies to do what they need to do?
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  Speaker 8: So exactly the right point in scarlet. I really appreciate
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  Speaker 8: you bring it back to H twenty. H twenty even
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  Speaker 8: more deprecated than H two hundred. When the White House
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  Speaker 8: and the presidents sat down to decide if they wanted
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  Speaker 8: to allow Nvidia to do this, the calculus that they considered,
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  Speaker 8: and I know I've seen the briefing document that was
• 15:09
  Speaker 8: shared with the President, is we either export zero technology,
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  Speaker 8: no matter how deprecated it is, all we let them
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  Speaker 8: have the absolute latest, or we land somewhere in the
• 15:18
  Speaker 8: middle better technology but not the absolute best. And they
• 15:21
  Speaker 8: landed on that part in the middle on the basis
• 15:24
  Speaker 8: that H twenty isn't that useful, but you want American
• 15:28
  Speaker 8: companies to have access and be the main player lead
• 15:31
  Speaker 8: the technology stacking an important market China. So two hundred
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  Speaker 8: is better than H twenty. It's not the absolute latest
• 15:38
  Speaker 8: and greatest, but it prevents China from having the impetus
• 15:42
  Speaker 8: to allow its domestic champions to try and catch up.
• 15:46
  Speaker 8: And that was the calculation that they've made.
• 15:49
  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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• 16:09
  Speaker 2: President Donald Trump assuming JP Morgan Chase and it's CEO
• 16:13
  Speaker 2: Jamie Diamond for five billion dollars that's accusing them of
• 16:17
  Speaker 2: illegally quote deep banking quote his business is due to
• 16:21
  Speaker 2: his politics.
• 16:22
  Speaker 3: Let's see what there's any meat to the bone here.
• 16:24
  Speaker 2: Eliot Stein, Bloomberg intelligence litigation analyst, joints this here. We
• 16:28
  Speaker 2: have to be quick because Elliott he bills us by
• 16:30
  Speaker 2: the hour. Here, Elliott is just talk to us about
• 16:33
  Speaker 2: this case.
• 16:34
  Speaker 3: Does this have merit? Do you think?
• 16:37
  Speaker 7: I don't think it does. And the bank came out
• 16:40
  Speaker 7: and said yesterday too that they don't think it does either.
• 16:43
  Speaker 7: You know that the challenge for President Trump and the
• 16:46
  Speaker 7: affiliated Trump entities that are assualing is that the customer
• 16:51
  Speaker 7: agreements with JP Morgan allowed the bank to close accounts
• 16:56
  Speaker 7: for any reason at any time. And Trump's complained concedes
• 17:00
  Speaker 7: that they acknowledge that, so they can't really sue for
• 17:03
  Speaker 7: breach of contract. So they're stuck with what's called a
• 17:06
  Speaker 7: breach of the implied covenant of good faith and fair dealing,
• 17:09
  Speaker 7: which is sort of saying that JP Morgan violated the
• 17:12
  Speaker 7: spirit of the contract by, you know, allegedly deep banking
• 17:17
  Speaker 7: Trump for political reasons, which is unlawful, But they don't
• 17:21
  Speaker 7: cite what law was violated. So I think the Trump
• 17:25
  Speaker 7: entities are gonna have a hard time winning this case,
• 17:28
  Speaker 7: and I think JP Morgan is a good shot of
• 17:30
  Speaker 7: winning on its anticipated motion to dismiss.
• 17:33
  Speaker 6: Let me ask a dumb question, Elliott, is this Donald
• 17:36
  Speaker 6: Trump the private citizen suing JP Morgan and Jamie Diamond
• 17:40
  Speaker 6: or the White House suing JP Morgan and Jamie Diamond.
• 17:43
  Speaker 7: Who lives right, it's Trump in his individual capacity, and
• 17:49
  Speaker 7: then many Trump organization entities. And you know they're saying
• 17:56
  Speaker 7: that after the January sixth riots, JP Morgan closed their account,
• 18:01
  Speaker 7: so at that point he wasn't president anymore.
• 18:04
  Speaker 2: In any event, is our scenario where maybe just JP Morgan,
• 18:08
  Speaker 2: I guess if they don't win summary judgment, maybe they
• 18:10
  Speaker 2: just settle out of court or something like that.
• 18:12
  Speaker 7: Yeah, I mean, you know that that's certainly within the
• 18:15
  Speaker 7: realm of possibilities. I think the Bank's definitely gonna take
• 18:18
  Speaker 7: a shot on a motion to dismiss. You know, we'll
• 18:20
  Speaker 7: probably see that in the coming weeks and then you know,
• 18:24
  Speaker 7: and I think they have a good shot at winning that,
• 18:26
  Speaker 7: but you know, it's a pretty low bar generally for
• 18:29
  Speaker 7: a plaintiff to get over and motion to dismiss. They
• 18:31
  Speaker 7: just have to allege, you know, plausible allegations.
• 18:35
  Speaker 3: But so let's say JP.
• 18:36
  Speaker 7: Morgan loses on its motion to dismiss and the case
• 18:39
  Speaker 7: proceeds into discovery. JP Morgan will have another shot on
• 18:42
  Speaker 7: summary judgment to try to avoid trial and say that
• 18:46
  Speaker 7: there's not enough you know, facts developed to warrant going
• 18:49
  Speaker 7: to trial. I think if they lose that, then you're
• 18:52
  Speaker 7: talking about a settlement rather than going to trial. And
• 18:55
  Speaker 7: we've seen Trump sort of win settlements from other you know,
• 18:59
  Speaker 7: business and these that he's sued, especially in the media
• 19:01
  Speaker 7: space like ABC and Paramount and YouTube, Google and others,
• 19:07
  Speaker 7: you know, sort of in this like fifteen to twenty
• 19:10
  Speaker 7: five million dollar ring. So that's potentially an outcome that
• 19:14
  Speaker 7: we're not rolling out down the road.
• 19:17
  Speaker 6: So the other angle to this is that JP Morgan
• 19:21
  Speaker 6: has asked or says it has asked multiple administrations under
• 19:25
  Speaker 6: different presidents to change rules that oversee it and other
• 19:29
  Speaker 6: banks that quote put us in this position, put us
• 19:32
  Speaker 6: in this position to perhaps restrict some clients access to
• 19:35
  Speaker 6: banking services because of various requirements or overviews. What kind
• 19:41
  Speaker 6: of rules are in place that that JP Morgan might
• 19:46
  Speaker 6: be put in this position?
• 19:48
  Speaker 1: Right?
• 19:48
  Speaker 7: So, during the Bien administration, the bank and regulators sort
• 19:53
  Speaker 7: of made it easier for banks to close accounts for
• 19:57
  Speaker 7: legal or reputational risk. You know, they got a lot
• 20:01
  Speaker 7: of criticism from that from industries like the crypto industry
• 20:04
  Speaker 7: and certainly from you know, other conservative causes who said
• 20:11
  Speaker 7: that banks were closing accounts for you know, related to
• 20:16
  Speaker 7: industries that maybe were considered you know, not woken off
• 20:20
  Speaker 7: or not popular on the left, like gun industries and
• 20:24
  Speaker 7: things like that. So we've sort of seen a shift
• 20:26
  Speaker 7: away from that now in the Trump administration, where the
• 20:29
  Speaker 7: bank and regulators were sort of stopping that, stopping what
• 20:32
  Speaker 7: they what they call Operation Choke point two point zero
• 20:36
  Speaker 7: and saying that, you know, banks should not be closing
• 20:40
  Speaker 7: accounts so easily for reputational reasons. And actually we've seen
• 20:45
  Speaker 7: several states implement laws too saying that banks can't close
• 20:49
  Speaker 7: accounts for political reasons, like Florida, for instance, where this
• 20:53
  Speaker 7: lawsuit was brought, but those laws were not in place
• 20:56
  Speaker 7: back in twenty twenty one. The Florida law for thence
• 20:59
  Speaker 7: didn't come in to effect until twenty twenty four. So
• 21:01
  Speaker 7: that sort of goes to the point I was making
• 21:03
  Speaker 7: earlier that you know, there's no law here that Trump
• 21:07
  Speaker 7: can point to that say that JP Morgan violated.
• 21:10
  Speaker 2: I guess we've got my attention here on this story.
• 21:13
  Speaker 2: Elliott was naming CEO Jamie Diamond personally in the suit.
• 21:17
  Speaker 2: What's the strategy there?
• 21:18
  Speaker 3: Do you think?
• 21:20
  Speaker 7: You know? I mean, it's hard to say exactly what
• 21:22
  Speaker 7: the strategy there is. I I you know, Diamond and
• 21:25
  Speaker 7: Trump have sort of been going back and forth, you know,
• 21:29
  Speaker 7: on various issues related to for instance, Trump sort of
• 21:34
  Speaker 7: attacking the Federal Reserve and also his proposal to cap
• 21:37
  Speaker 7: credit card interest rates at ten percent, and you know,
• 21:41
  Speaker 7: it goes back even farther for several years. You know,
• 21:44
  Speaker 7: Jamie Diamond has said things over the years that were
• 21:47
  Speaker 7: critical of Trump and then walk them back. So I
• 21:49
  Speaker 7: think there is a little bit of tension between the two.
• 21:52
  Speaker 7: So you know, it may be as simple as that,
• 21:54
  Speaker 7: just trying to sort of poke him in the eye.
• 21:56
  Speaker 7: A little to you know, and then maybe bring them
• 21:59
  Speaker 7: to the table for some sort of settlement.
• 22:02
  Speaker 6: We also know that the Trump his company or his
• 22:06
  Speaker 6: companies have also suited other companies like Capital One, BBC,
• 22:09
  Speaker 6: THANW York Times. Have any of those come to anything,
• 22:12
  Speaker 6: So you know, the.
• 22:13
  Speaker 7: One that is most analogous is the one against Capital One.
• 22:17
  Speaker 7: The claims are almost identical, but we don't have a
• 22:22
  Speaker 7: definitive ruin in that case. Like the JP Morgan case,
• 22:25
  Speaker 7: the Capitol one case was filed in Florida State court
• 22:28
  Speaker 7: that actually got removed to federal court for sort of
• 22:32
  Speaker 7: arcane reasons that only lawyers appreciate. So I won't bore
• 22:36
  Speaker 7: you with it, but I don't think JP Morgan is
• 22:40
  Speaker 7: going to have the same reasons for removing it to
• 22:43
  Speaker 7: federal court. So I think the JP Morgan case may
• 22:45
  Speaker 7: stay in state court. But in the Capital one case,
• 22:49
  Speaker 7: we're waiting for a decision from the court on Capitol
• 22:52
  Speaker 7: One's motion to dismiss, which I think will be informative
• 22:55
  Speaker 7: with the next to the JP Morgan case.
• 22:58
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