Latest / Bloomberg Intelligence / Tesla Slides on Concern Musk’s New Party Will Worsen Slump

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Tesla Slides on Concern Musk’s New Party Will Worsen Slump · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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  Speaker 1: Business App. Listen on demand wherever you get your podcasts,
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  Speaker 2: For now, we want to go from the markets and
• 0:25
  Speaker 2: shift over to Tesla. Tesla shares have been down there
• 0:28
  Speaker 2: more than seven percent right now here to tell us
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  Speaker 2: about it more? Why is Craig for Trudell? He's Bloomberg
• 0:34
  Speaker 2: Global Auditors Editor Craig want to start out and talk
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  Speaker 2: about this our investors. Are they just tired? I guess
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  Speaker 2: this is assuming going according to what Elon Musk has
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  Speaker 2: been saying. Are they just tired of his kind of
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  Speaker 2: talking about this and putting himself out there and talking
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  Speaker 2: about politics when he should be focused on the company.
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  Speaker 3: I think they see all sorts of risks here. You know,
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  Speaker 3: this is a matter of now, you know, just alienate,
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  Speaker 3: alienating Democrats, but but also now going after Republicans and
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  Speaker 3: and you know, really uh, sort of ticking off Donald Trump.
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  Speaker 3: And we've seen that with Trump going from you know,
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  Speaker 3: kind of biting his tongue when Musk was first attacking uh,
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  Speaker 3: you know, the big beautiful Bill to really going after
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  Speaker 3: Musk in a more sort of pitched way. And you know,
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  Speaker 3: so so this is uh, you know, a risk for
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  Speaker 3: him to to sort of make himself in an enemy
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  Speaker 3: and of of both sides of the aisle in Washington,
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  Speaker 3: Washington potentially, but also you know, just a great big
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  Speaker 3: distraction after he's assured everybody, you know, on multiple occasions, look,
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  Speaker 3: I'm going to you know, sort of get back to
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  Speaker 3: business and and uh, you know, tend to to Tesla
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  Speaker 3: more than I have been, you know, since last year.
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  Speaker 4: So I have to ask this question, is there a
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  Speaker 4: board here at this company that can reign Elon Musk?
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  Speaker 3: Here? There is, You wouldn't necessarily know it from the
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  Speaker 3: actions of the board, right, you know, to the extent
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  Speaker 3: that we've heard from the board recently, it's been to say,
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  Speaker 3: you know, Elon's are our guy.
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  Speaker 5: You know.
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  Speaker 3: They they batted down a report in the Wall Street
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  Speaker 3: Journal just in the last few months about you know,
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  Speaker 3: potential succession planning at the company. I think the sort
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  Speaker 3: of read of that, a close read of that story,
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  Speaker 3: it wasn't necessarily the case that what the journal was
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  Speaker 3: saying was that they are you know, were actively looking
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  Speaker 3: to replace Musk. It was potentially more of a matter
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  Speaker 3: of of you know, sort of doing the job that
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  Speaker 3: you would expect a board to do. I should sort of,
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  Speaker 3: you know, give them a credit in that regard that
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  Speaker 3: at least they're preparing for, you know, the potential of
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  Speaker 3: of needing to to look for a next CEO. But
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  Speaker 3: you know, Musk is very much in control of this
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  Speaker 3: company and that was something that you know, the Delaware
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  Speaker 3: Chancery Court judge who throughout his pay package, you know,
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  Speaker 3: really emphasized in her ruling last year when she said,
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  Speaker 3: you know, he's very much in control of this company
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  Speaker 3: and its board, and you know on those grounds, uh,
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  Speaker 3: you know, throughout his compensation package, which has created you know,
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  Speaker 3: another mess and and you know, I think this you know,
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  Speaker 3: political endeavors, you know, only only complicates the board's attempt
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  Speaker 3: to try and get him him compensated in a in
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  Speaker 3: a way that he's going to be happy with now quick.
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  Speaker 2: Not too long ago, we heard Ilama saying, you know what,
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  Speaker 2: I'm going to get back to it. I'm going to
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  Speaker 2: focus on Tessel. This was after the last earnings and
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  Speaker 2: now we're seeing the shift right, he's talking about this
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  Speaker 2: America Party. I mean, is is this something that investors
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  Speaker 2: should be concerned about? He's kind of going back on his.
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  Speaker 3: Word there, Yeah, I mean, I think you know some
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  Speaker 3: of the it's it's not the only way in which
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  Speaker 3: he's he's sort of undermined himself. And and you know,
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  Speaker 3: potentially you made an investors question the things that he's
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  Speaker 3: been telling them because he also, you know, said to
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  Speaker 3: Bloomberg back in May that our sales are turning around, right,
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  Speaker 3: and that was not born out in the deliveries numbers
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  Speaker 3: that the company reported last week. They had a thirteen
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  Speaker 3: percent year over year decline in worldwide vehicle sales. That
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  Speaker 3: was almost bang on what they posted for the first quarter.
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  Speaker 3: So you know, for him to say, you know that
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  Speaker 3: he thinks in terms of political spendings, he's done enough
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  Speaker 3: that he's going to you know, do a lot less
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  Speaker 3: of it in the future. You know, that was what
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  Speaker 3: he said in May, and this is is pretty much
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  Speaker 3: one hundred and eighty degrees different from from what he
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  Speaker 3: was saying.
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  Speaker 5: Then.
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  Speaker 4: All right, Greig, thank you so much. I appreciate your reporting.
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  Speaker 4: Craig Trudel Global Auto's editor for Bloomberg News.
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  Speaker 6: He is in London.
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  Speaker 4: I mean, it just feels like the brand has suffered damage,
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  Speaker 4: the Tesla brand.
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  Speaker 6: I guess the data will prove that out, and.
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  Speaker 2: That's just kind of expected.
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  Speaker 4: I know, I don't know, but but it seems like
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  Speaker 4: if you do a third party, you're kind of upsetting everybody.
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  Speaker 4: It's like both sides of the aisle. I don't know
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  Speaker 4: how that's a good marketing strategy.
• 5:06
  Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
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  Speaker 1: weekdays at ten am Eastern on Apple, Coarclay, and Android
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  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 5:20
  Speaker 2: All right, well, the House past President Trump's latest tax
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  Speaker 2: and spending bill. But what does that mean for the
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  Speaker 2: pharmaceutical industry? Well, we're about to learn more. I introduce
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  Speaker 2: to you Sam Fazzelli. He's Bloomberg with Intelligence, Director of
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  Speaker 2: Research for Global Industry Senior Pharmaceuticals. Sam, I want to
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  Speaker 2: start there. I mean, what does this mean for pharma?
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  Speaker 5: So the one big beautiful bill had in it a
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  Speaker 5: couple of things, many things, obviously, I can't remember how
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  Speaker 5: many pages it was supposed to be. But for the
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  Speaker 5: farmer industry, I'm going to focus on two things right now.
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  Speaker 5: Right one is a good thing. So there is an
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  Speaker 5: orphan drug change and impacts the IRA and actually impacts
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  Speaker 5: some really big drugs. Here. What's an ophan drug. When
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  Speaker 5: you develop a drug for a patient population that less
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  Speaker 5: than two hundred thousand in the US, you called an
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  Speaker 5: orphan drug. You get a special exemption. It really helps
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  Speaker 5: you in terms of your duration of time that it
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  Speaker 5: can be on the market. It's a respective of your
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  Speaker 5: patent expiry. It was all set up to help companies
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  Speaker 5: develop drugs for these underserved markets. Two hundred thousand. Okay,
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  Speaker 5: it's not small. It's not big, but it's not that small.
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  Speaker 5: So it helped. One of the big drugs that had
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  Speaker 5: this was Cutruder, which is the biggest selling drug at
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  Speaker 5: the minute, and that's for cancer from merk. So when
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  Speaker 5: IRA came along, it said, what we're going to do
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  Speaker 5: is say your drug twenty fourteen approval for Truder under
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  Speaker 5: orphan drug. Great, if you're an ophen drug, you don't
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  Speaker 5: fall into IRA the renegotiation or price and all that.
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  Speaker 5: But as soon as you get another indication then that
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  Speaker 5: clock starts from the original date of approval. So if
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  Speaker 5: you had a drug orphant drug in twenty fourteen and
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  Speaker 5: you get some other indication in twenty twenty two, they
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  Speaker 5: date back to count the clock counting to twenty fourteen.
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  Speaker 5: That was terrible. It really means that nobody would want
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  Speaker 5: to do multi indication tests, et cetera. So that's been changed.
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  Speaker 5: Once an ophn drug is you can keep that drug date.
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  Speaker 5: And so what does that mean for Ktruder from Merk
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  Speaker 5: one extra year before price negotiations by Medicare, and that's
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  Speaker 5: a twenty thirty billion dollar drug selling something like fifty
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  Speaker 5: percent of his revenues in the US. That's a huge
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  Speaker 5: win for the industry.
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  Speaker 4: Sam, I'm looking at some of the bigger names, the
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  Speaker 4: Mark down eighteen percent, and you know some of these
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  Speaker 4: other names, the big farmer companies, Bristol Meyers down seventeen percent.
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  Speaker 4: Is the markets? What's that reflect?
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  Speaker 5: That?
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  Speaker 6: Just uncertainty around trade, around teriffs.
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  Speaker 5: All of it. So on the one hand, we've got
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  Speaker 5: this positive. On the other hand, we have two big
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  Speaker 5: things hanging over the farmer industry in general. One is
• 8:01
  Speaker 5: the tariffs, sectoral tariffs that are still being discussed. We
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  Speaker 5: don't know yet. This is to try and incentivize companies
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  Speaker 5: to bring their products to a manufacturing into the US
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  Speaker 5: if they want to sell in the US market, et cetera.
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  Speaker 5: If we did hear that perhaps in the trade deal
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  Speaker 5: with the Switzerland they're giving a special dispensation for the
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  Speaker 5: Swiss farmer companies rash and no artists and their shore
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  Speaker 5: prices were up. But we don't know. We haven't seen
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  Speaker 5: this trade deal yet. And then you've got the most
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  Speaker 5: favored nation, which is the one that's particularly draconian, and
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  Speaker 5: that is to say that whatever price do you want
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  Speaker 5: to charge in the US, it's got to be closer
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  Speaker 5: to the lower end of companies with a similar GDP
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  Speaker 5: or something in the West. So that really is where
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  Speaker 5: I think the biggest problem is we haven't heard anything,
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  Speaker 5: but that's still under discussion and under consideration. Might be
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  Speaker 5: another six to nine months before we hear anything.
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  Speaker 4: Sam Another big I guess component of this administration policy
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  Speaker 4: has been cutting funding or maybe threatening the cut funding
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  Speaker 4: for research universities. And I have long experience with Duke University,
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  Speaker 4: which is a huge medical center and research area. Here's
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  Speaker 4: what's your industry saying about those potential cuts.
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  Speaker 5: Yeah, the industry itself is relatively quiet, Paul, because what
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  Speaker 5: they don't want to do is is, I don't know
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  Speaker 5: whether the right phrases here, shake the target, tiger's cage
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  Speaker 5: or whatever, you know, rattle the whole set here. But
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  Speaker 5: in reality, there is a I think what I heard
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  Speaker 5: the last number was a twelve percent increase in applications
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  Speaker 5: to some of the top universities in Europe versus what
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  Speaker 5: they were last year from the US. So that's folks
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  Speaker 5: that would have gone to or wanted to go to Harvard,
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  Speaker 5: they're now looking at Oxford, Cambridge, Siance, Pool, et cetera,
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  Speaker 5: these very brilliant universities across Europe. So there's that issue.
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  Speaker 5: But remember in the OBBB there's also another area where
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  Speaker 5: there is a cup to mediciate spending. That's a million
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  Speaker 5: Medicaid covered folks that lose it. That will also have
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  Speaker 5: repercussions for pharma companies, healthcare in general. And of course
• 10:08
  Speaker 5: you go to a hospital you don't have insurance, they're
• 10:11
  Speaker 5: going to treat you. Who's going to pay for that?
• 10:13
  Speaker 5: It's going to go on your premium. There's a tax
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  Speaker 5: on you, you know, let's see how this all pans out.
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  Speaker 5: But not good there either.
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  Speaker 2: All right, Sam, I want to talk about the Medicaid cuts.
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  Speaker 2: I'm going to kind of put you on the spot there,
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  Speaker 2: but it's going to affect insurers who focus on Medicaid.
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  Speaker 2: They might lose customers. So what does this mean for like,
• 10:32
  Speaker 2: let's say Elevant's Health, United Health companies that do deal
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  Speaker 2: with this.
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  Speaker 5: Yeah, so they are clearly under pressure and there's a
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  Speaker 5: risk for them. And one of the issues is exactly
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  Speaker 5: what you just said. You know, this is completely upsetting
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  Speaker 5: the card here for the insurance in general. The point is,
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  Speaker 5: I'm not convinced that they will necessarily lose out. I mean,
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  Speaker 5: we have dedicated expert analysts who cover the sector, et cetera.
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  Speaker 5: But usually what's going to happen is that if they're
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  Speaker 5: not making money elsewhere, they're going to try and raise
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  Speaker 5: premium somewhere else, which is what I said to start with,
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  Speaker 5: that there will be a way that they'll get through this.
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  Speaker 5: But clearly uncertainty in the new time.
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  Speaker 6: There's that word again, uncertainty.
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  Speaker 4: We heard her so many times the day across so
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  Speaker 4: many different industries. Sam Fazelli, thanks so much for your time.
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  Speaker 4: Always appreciate checking in with you. Sam Fazzelli. He's a
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  Speaker 4: director of Research for Global Industries, Senior Pharmaceuticals and Senior
• 11:26
  Speaker 4: Wine analyst for Bloomberg Intelligence.
• 11:28
  Speaker 6: Based over there in London.
• 11:32
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 11:36
  Speaker 1: weekdays at ten am Eastern on Apple, Coarclay and Android
• 11:39
  Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
• 11:43
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 11:46
  Speaker 2: All right, we're going to shift gears now. I want
• 11:48
  Speaker 2: to take us to honorad Rona. He is Bloomberg Intelligence
• 11:50
  Speaker 2: Technology analyst corwe That is the big headline buying Core Scientific.
• 11:56
  Speaker 2: It's an all stock transaction, an rog. I want to
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  Speaker 2: bring you in and talk about this for core Weve.
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  Speaker 2: What is the benefit from this? What do they gain
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  Speaker 2: from this?
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  Speaker 7: Mean, think about it that they have capacity to process
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  Speaker 7: ex summer of transactions or the backlock that they have
• 12:11
  Speaker 7: with this particular deal, they are expanding their infrastructure.
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  Speaker 5: I mean it's a very simple deal.
• 12:15
  Speaker 7: As if you know, they're just buying more factories to
• 12:18
  Speaker 7: produce what they do. So is you know, it's it's
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  Speaker 7: as simple as that.
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  Speaker 6: All right, So this.
• 12:23
  Speaker 4: I'm not a tech person, so, but I know, tell
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  Speaker 4: us what Core We've is, what do they do and
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  Speaker 4: why are they shouting out nine billion dollars to get bigger?
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  Speaker 6: I guess yeah.
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  Speaker 7: So in the purest of pure forms, they are just
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  Speaker 7: renting computing resources to anybody that wants to run an
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  Speaker 7: AI infrastructure.
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  Speaker 5: They are a very big Invidia shop.
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  Speaker 7: They basically buy GPUs from Invidia, They create a network
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  Speaker 7: or an infrastructure, and they give it to people to
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  Speaker 7: go out and experiment or do whatever they need to
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  Speaker 7: do on that infrastructure. It's no different than what AWS does,
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  Speaker 7: but very heavy focus on GPUs rather than the CPO.
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  Speaker 7: So that's really the big difference between a pure play
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  Speaker 7: provider like Core Weve versus Amazon Web Services.
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  Speaker 2: Now, if you can dig into some of the background,
• 13:09
  Speaker 2: what kind of challenges has has Core We've had in
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  Speaker 2: the past. I mean, didn't they have a pretty dismal IPO.
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  Speaker 5: Yeah.
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  Speaker 7: I think that's really the most important thing is, you know,
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  Speaker 7: they everybody thought when they're going to come out as
• 13:20
  Speaker 7: the first pure play you know AI infrastructure IPO, it's
• 13:24
  Speaker 7: going to be extremely popular, but it didn't happen. And
• 13:27
  Speaker 7: the reason for that is because they need a large
• 13:30
  Speaker 7: amount of upfront capital to build these data centers, and
• 13:33
  Speaker 7: then the workload comes in over the.
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  Speaker 5: Next several years.
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  Speaker 7: So there's a lot of questions about whether there's going
• 13:39
  Speaker 7: to be sustainability of this GPU demand going forward several
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  Speaker 7: years out. So that's why you were right. The IPO
• 13:45
  Speaker 7: came at forty. In a few days, it was down
• 13:47
  Speaker 7: to thirty five. But now we're seeing you know, the
• 13:50
  Speaker 7: stock closer won sixty before this deal was announced, so
• 13:53
  Speaker 7: I you know, we have talked about it before that.
• 13:55
  Speaker 7: You know, why aren't they doing a secondary when it's
• 13:57
  Speaker 7: like one hundred and sixty blucks stocks of what they
• 13:59
  Speaker 7: did instead? It is they use their stock to go
• 14:02
  Speaker 7: out and buy another competitor I should say competitor, but
• 14:05
  Speaker 7: you know, another company in that space, so that it
• 14:08
  Speaker 7: expands their capacity, and you know, I think they're doing
• 14:10
  Speaker 7: the right thing by using stock at this point.
• 14:13
  Speaker 4: Are there more core weaves out there on a round
• 14:16
  Speaker 4: kind of more pure play AI stories, maybe the kind
• 14:20
  Speaker 4: of the sausage of AI if you will, the guts
• 14:24
  Speaker 4: that somebody could take public.
• 14:27
  Speaker 7: There are multiples of them there, but they are much
• 14:29
  Speaker 7: smaller size in korby they I would say there would
• 14:32
  Speaker 7: be hundreds of them at this point, because you know,
• 14:35
  Speaker 7: you go out, you buy the GPU, you go out
• 14:37
  Speaker 7: and start renting it out in the in you know,
• 14:40
  Speaker 7: in a long time ago, this high powered computing was
• 14:42
  Speaker 7: used for bitcoin mining, and then you know, when that's
• 14:45
  Speaker 7: not in favor, these guys are renting out their infrastructure
• 14:48
  Speaker 7: for other reasons. So there are other plays out there,
• 14:51
  Speaker 7: but almost all of them are much smaller than core
• 14:54
  Speaker 7: Viv from a you know, pure play point of view.
• 14:57
  Speaker 2: Now we digged into corewey, what about Core Scientific, what's
• 15:00
  Speaker 2: the attraction to them?
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  Speaker 7: I mean, it's just they're expanding the number of you know,
• 15:05
  Speaker 7: the capacity that they have to process the transactions. In
• 15:08
  Speaker 7: a sense that Corvieve is a massive backlock right now
• 15:11
  Speaker 7: they have people wanting to use their services, and then
• 15:14
  Speaker 7: these guys have to go out and lease it from
• 15:16
  Speaker 7: you know, other companies like our Scientific In this case,
• 15:19
  Speaker 7: they said, you know, they have an agreement with them
• 15:21
  Speaker 7: to lease their facilities. They just said, you know, we'll
• 15:25
  Speaker 7: buy it out and expand their size. And I think
• 15:27
  Speaker 7: that's as simple as that.
• 15:28
  Speaker 4: And I think I have to point out Lisa core
• 15:31
  Speaker 4: Weave based in Livingston, New New Jersey.
• 15:34
  Speaker 6: Yes, so it just goes to my folks.
• 15:36
  Speaker 4: A little history lesson. Before there was Silicon Valley, there
• 15:40
  Speaker 4: was New Jersey. There was Central Jersey, the Institute for
• 15:43
  Speaker 4: Advanced Study, Princeton University, Menlo Park, New Jersey. Before there's
• 15:48
  Speaker 4: a Menlo Park, California, Menlo. Before there's a sand Hill
• 15:50
  Speaker 4: road in Silicon Valley, there's a sand Hill.
• 15:53
  Speaker 6: Road in Jersey. So it all, there's all these Jersey
• 15:56
  Speaker 6: guys went on New Jersey is back in New Jersey.
• 15:59
  Speaker 6: All right, an, thank you so much. We appreciate it.
• 16:00
  Speaker 4: On a rock ron Eastern technologyannels for Bloomberg Intelligence. He's
• 16:04
  Speaker 4: in at Chicago. You're trying to establish Chicago as a
• 16:07
  Speaker 4: technology hub.
• 16:08
  Speaker 6: Here.
• 16:10
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 16:14
  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
• 16:17
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  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 16:24
  Speaker 2: We want to move on now to the latest TikTok news.
• 16:27
  Speaker 2: We're going to bring a man deep saying Bloomberg Intelligence
• 16:29
  Speaker 2: senior tech industry analysts. Okay, so Mandy, President Trump getting
• 16:32
  Speaker 2: ready to begin talks with China. About a possible TikTok
• 16:35
  Speaker 2: deal to sell the app. Want to ask you, where
• 16:37
  Speaker 2: do we stand in this right now?
• 16:39
  Speaker 6: What is the latest?
• 16:40
  Speaker 8: I mean, from what we know, President Trump is pretty
• 16:43
  Speaker 8: confident that there is a buyer. In fact, there could
• 16:46
  Speaker 8: be private equity buyers at Consortium who may be interested
• 16:51
  Speaker 8: in buying TikTok us. And at this point, you know,
• 16:55
  Speaker 8: they want to make sure that it goes through in
• 16:58
  Speaker 8: terms of getting the approval from China. But in the
• 17:01
  Speaker 8: process they've launched a new app, TikTok Has, and that
• 17:06
  Speaker 8: sort of suggests they want to decouple the algorithm from
• 17:09
  Speaker 8: the core TikTok usage. So that was also a point
• 17:14
  Speaker 8: of contention in terms of getting the approval. So I
• 17:18
  Speaker 8: think the two go hand in hand, that one there
• 17:21
  Speaker 8: is a buyer available and the other the app is
• 17:23
  Speaker 8: getting a changeover in terms of decoupling the algorithm.
• 17:26
  Speaker 4: All right, So am I going to have effectively two
• 17:30
  Speaker 4: tiktoks out there? The TikTok app we all know and love,
• 17:34
  Speaker 4: and then something that they are doubling internally is M two.
• 17:38
  Speaker 4: So now there's gonna be two effective TikTok apps out
• 17:42
  Speaker 4: there for all these people.
• 17:44
  Speaker 8: Yes, and look with apps, there's always like a date
• 17:49
  Speaker 8: when the first app will obviously be phased out and
• 17:54
  Speaker 8: folks won't have access to it. I mean, remember what
• 17:57
  Speaker 8: happened during the band you know that wasn't even available.
• 18:01
  Speaker 8: So in this case, the plan is if and when
• 18:04
  Speaker 8: the deal gets announced and the new TikTok owner which
• 18:08
  Speaker 8: we don't know who will be ye, will get access
• 18:11
  Speaker 8: to the new app, and then the first one gets
• 18:13
  Speaker 8: paced down.
• 18:14
  Speaker 2: All right, So my kids want to know, asking, okay,
• 18:18
  Speaker 2: is there any chance of none of this going through,
• 18:21
  Speaker 2: like just TikTok disappearing from the US in general, they'd
• 18:25
  Speaker 2: be devastated, Mandy.
• 18:27
  Speaker 8: Look, it happened for two days, the app went dark,
• 18:30
  Speaker 8: and at that time Instagram got a very nice pop
• 18:33
  Speaker 8: in terms of engagement. So from that perspective, this will
• 18:38
  Speaker 8: be all positive news for a meta snapchat or you know,
• 18:42
  Speaker 8: even if dual lingo was mentioned as a beneficiary of
• 18:46
  Speaker 8: app and dark. Yeah, I know, it's all very intuitive,
• 18:49
  Speaker 8: but it did happen. In the data you could see
• 18:51
  Speaker 8: for those two days, duel Lingo did get a pop
• 18:54
  Speaker 8: in the engagement time.
• 18:56
  Speaker 6: All right.
• 18:56
  Speaker 4: I mean, you gotta spend your time somehow, go forbid
• 18:58
  Speaker 4: reading a book says the father. You know, Okay, so China.
• 19:04
  Speaker 4: If I'm China, what's my incentive to approve a sale
• 19:07
  Speaker 4: to say, a group maybe including some like an Oracle,
• 19:11
  Speaker 4: what's my incentive?
• 19:13
  Speaker 8: The incentive is it's the President of the United States
• 19:16
  Speaker 8: who is negotiating the deal, you know. And this is
• 19:20
  Speaker 8: part of a much bigger conversation when it comes to
• 19:24
  Speaker 8: China tariffs and everything that they are negotiating. So TikTok
• 19:29
  Speaker 8: deal to me, is part of that bigger negotiation now,
• 19:33
  Speaker 8: and President Trump is obviously keen to have a deal
• 19:36
  Speaker 8: for TikTok Us. He doesn't want the app to be banned,
• 19:39
  Speaker 8: and as part of that, he wants some concessions on
• 19:42
  Speaker 8: the tariff front. So to me, this is part of
• 19:45
  Speaker 8: a much bigger negotiation.
• 19:46
  Speaker 2: Now you mentioned Oracle, it's Oracle, the only name being
• 19:49
  Speaker 2: thrown around.
• 19:50
  Speaker 8: They are the trusted one when it comes to Washington.
• 19:53
  Speaker 8: They are among all the hyperscalers. I think they get
• 19:56
  Speaker 8: the trust of the President in terms of moving.
• 19:59
  Speaker 2: Ahead with what's the drug? Why Oracle?
• 20:01
  Speaker 8: Well, Oracle clearly hosts all the back end infrastructure for TikTok,
• 20:07
  Speaker 8: So this has been going on a while and they
• 20:09
  Speaker 8: have moved all the back end infrastructure to Oracles platform,
• 20:14
  Speaker 8: and they clearly have some sort of synergy when it
• 20:17
  Speaker 8: comes to hosting that making sure nothing gets saved in
• 20:21
  Speaker 8: Chinese data centers and none of the data gets transferred there.
• 20:25
  Speaker 8: So I think they're in the best position to do.
• 20:27
  Speaker 4: That thirty seconds. Any sense of timing when this could happen.
• 20:31
  Speaker 8: It sounded like President Trump is confident about this happening
• 20:35
  Speaker 8: over the course of the next ninety days, because remember
• 20:38
  Speaker 8: he extended the band by another ninety days, so to
• 20:40
  Speaker 8: do that, that would be my guest.
• 20:41
  Speaker 4: All right, Man Deep, thank you so much.
• 20:43
  Speaker 6: Appreciate that.
• 20:43
  Speaker 4: Man Deep, seeing senior tech industry anust, I can't imagine
• 20:47
  Speaker 4: he's on TikTok, but you never know Bloomberg Intelligence learnings
• 20:50
  Speaker 4: here in our Bloomberg Interactive Broker studio at Lisa.
• 20:52
  Speaker 6: Are you a TikToker?
• 20:54
  Speaker 2: I am not, but I will Actually I take that back,
• 20:56
  Speaker 2: I am because I have to follow my kids to
• 20:58
  Speaker 2: make sure to spy on them, you know, so I
• 21:01
  Speaker 2: have to join in.
• 21:02
  Speaker 4: All right, all right, I don't know, and it's it's
• 21:04
  Speaker 4: big for one hundred and seventy million US users.
• 21:08
  Speaker 6: I know, I know exactly. He's all over that stuff.
• 21:13
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