Bloomberg's Srinivasan on Intel, Heilemann on Clinton (Audio)

will benefit the Glide Foundation. Out of San Francisco. Stocks are lower SMP five hundred index, heading for the steepest drop in two months, amid caution over tepid global growth and a series of looming events with the potential to spur renewed market turbulence. Right now, the SMP five hundred index down twenty four points to two thousand ninety one,

a drop there of one point one percent. Nas stackdown seventy three, a drop of one and a half percent down, Industrials down one sixty, a drop of nine tenths of one percent, Gold up five ninety the ounce to twelve seventy eight, a gain of five tenths of one percent, and crude down a dollar fifty forty nine oh six for a barrel of West Texas Intermediate. Looking at a drop now of three on w T I I'm Charlie

Pellett and that's a Bloomberg business flash. You're listening to taking stock with pim Box and Kathleen Hayes on Bloomberg Radio. Apple's not waiting for It's a worldwide developers conference next week in San Francisco to shake up the market. Today we find out that Apple's next iPhone will use motive chips from Intel, replacing qual comp chips in some versions of the new handset. Apparently it's a move by the world's most valuable public company as that's Apple, to diversify

its supplier base. Here to talk about it, what it means for investors for the industry is on Entrene of us and he's Bloomberg Intelligence senior semiconductor and hardware analysts on on were you surprised by this? Now? This has been rumored for quite a while now, and the popular press has been talking about it for quite some time and then use his and intensifying some people have known for a while that there's something here. Um. The simple strokes of it is is that it's good for Intel

and it's bad for quacom Um. But the Apple supply chain seems to be getting more complicated from a supplier base as well as the number of components and the number of suppliers that go into it. So UM, it's interesting because Apple thus far has only had three specific types of the iPhone UM for each version, and now it's it's likely to get a little bit more complicated than that. Okay, for lay person like me, are these chips that different? I mean, doesn't really make that much

difference which one actually they are. And the reason why Qualcom has had the share historically that it has had is because these chips are enormously complex. Um. You have a number of different bands or spectrums that you operate in different telecom carriers all over the world. Remember, operate on a different band. Then you have versions of each of these. So by the time you put it all together, you have to have every single flavor of every single

carrier in every single region of the world. And as you move forward, suddenly it has to work with your WiFi chips and it has to work with your Bluetooth chips. So UM, to answer the question, yes, it is enormously complicated, takes an enormous amount of R and D, but the smartphone market is slowing. These developments have hit sort of a little bit of a plateau coming off of the three G two four G transitions. So now Apple and the other carriers to saying, Okay, what can I get

what's the best price I can get for these chips? Well, and they're going to continue to put the Qualcom chips in the phones in China. Absolutely, um so. This is this is vendor management. This is exacting the best price for the best product possible. Do you expect I think from the Worldwide Developer Conference next week when Apple gets everybody together thousands of people in the Bay Area. Tim

Cook of course will be orchestrating events. Yeah, this is going to be more of from an operating system and an apps standpoint. Um not as much drama on the hardware side as as as on the software section. How important is for intels is a big win for them. This is a big win for Intel because they have historically been a laggered in the space. Um and they got booted out of the iPhone a long time ago

when and Finian was in there. Um so, um so it is it is a huge splash for them, and it's a loss making division for them, So hopefully this will help produce the losses Boston. Thank you so very much for joining us senior semi conductor and hardware analysts for Bloomberg Intelligence here in New York City. Have a

great weekend. Thank you YouTube well. Speaking of big wins, uh, we are at the point now where we can talk pretty seriously about who's going to get the big win in November when it comes to winning the White House. We're very happy to welcome back, as we do often at this time, John Heilman. He is host, with all due respect on Bloomberg Television, one of the leading lights of Bloomberg politics, and you can catch it every day week nights on Bloomberg t e V Bluebrig ninety nine

one on the radio in Washington. So John's I guess it's uh, the historic moment is here. Hilary is the front, is leading the Democratic pack, Trump reading leading the Republican pack. Now what chaos madness? Um? Right, So yeah, we have now presumptive nominees in both parties, and um, the general election is on. Today. You had Hillary Clinton giving a speech at Planned Parenthood and you had Donald Trump giving a speech to Religious Freedom Conference. Um. Kind of classic

preview of what the fall campaign will look like. Both of them, uh, speaking to audiences of the faithful and uh, I mean that in both senses of the word uh, members of the base and using those speeches both to uh build energy among their core constituencies and also attack each other. And um they both went after each other

pretty hard today. Um, but not in a way that it was I think in a way that I think, you know, it's suggestive of what we're likely to see over the course of the next um X number of months. I don't really even know how many months it is between now and remember maybe you know that I'm horrible and like, Okay, well, is this in the category of

with friends like this, who needs enemies? When Senate Majority Leader Mitch McConnell, McConnell says Donald Trump needs to pick and experience running mate because quote, he doesn't know a lot about the issues and strongly urged him to change course on his retoric, well, yeah, I mean, look, it's it's it's now pretty evident that and it has been for a while, but it's really become dramatically evident in the wake of the controversies around uh uh Donald Trump's

racist comments about Judge Curiel that a lot of the Republican establishment that kind of tentatively came to embrace Trump over the course of the last month month and a half are very uncomfortable with UM, with their standard bearer. And so you have both Mitch McConnell, Paul Ryan, a lot of folks UM treading very lightly, and there they can't. They defend what Trump said, and they say that over

and over again. They haven't abandoned him yet. So from the standpoint of Trump, it would be worse if Mitch McConnell or Paul Ryan or others did what Centator Mark Kirk from Illinois did, which is to withdraw their endorsements from him entirely. But this is the way it's going

to be, I think throughout this election. I mean, if Trump continues to say things that are incendiary and potentially problematic for the Republican Party UM and it's candidates down ballot, you're gonna see Republican leaders doing this throughout, which is to say, UM, criticizing Trump, sometimes denouncing Trump, distancing themselves from Trump, but still maintaining at least some kind of

superficial level of support. Well, you know, John Howman, you you know, eight years ago you did a lot of reporting inside the camps. You know, for for Hillary, for Barack Obama, you did produce the great books and all. So what in this campaign so far was you apply that kind of reporting skill and that kind of experience. What are you finding from the Trump camp? Are they an ready to teach Donald Trump how to be you know, big and loud and and you know, be not pleitily correct,

but not cross over a line. I think that the there are two fundamental truths that have become clear in the last two or three weeks. The first is that there is no Trump campaign, and the second it is is that there's no changing Donald Trump. As you probably know from your own life, they're not that many men who are women, who are sixty nine seventy years old, who can be trained to be something different from what

they are. So the notion which was popular not that long ago, which is like Donald Trump wi pivot to become a general election candidate. He will be more quote presidential, he will moderate his tone, he will uh somehow rain himself in, he will script himself more often. Um. That is something that may in sporadically work, but it won't work in a sustained way. Over time, because it's just not who Trump is, it's not what not just as

a presidential candidate, but as a public figure. I think that the second thing is that there when I say there is no Trump campaign, I mean there are a bunch of people around Trump um way fewer than there would be around any normal presidential candidates still, because the campaign is having a hard time recruiting serious people to work there because of the fact that Trump is so

difficult um as a candidate to deal with. UM particularly people in the of a younger stripe, which is to say, like strategists in their twenties, thirties, and forties are staying away. But there are a bunch of people they're trying to corral Donald Trump. But there is no kind of traditional campaign structure, and the people who would exert a lot of authority in a normal presidential campaign exert very little

around Donald Trump. His fundraising apparatus doesn't really is just starting to come into form, like he's a year and a half behind in terms of building a fundraising uh infrastructure. He has no real field department, he has no data department, he has no rapid response, he doesn't have a communications director. He has you know, Hope Picks, who has been his press secretary, and the person who deals with the press. She's a one woman band. Still, you know, the campaign

manager in chief strategist UM. The two named players there, Paul Manifert and Korey Lewandowski, UM are you know, have some influence over Trump, but nothing like what you would have seen in the Romney campaign, the Obama campaign, the Clinton campaign currently. So you know, I think it's to describe it as chaos is is a little bit probably not overstated exactly, but that's sort of what's going on is there's a lot of whaling and nashing of teeth.

I got a quick file comment from you on the President's Barack Obama's the videotape piece that was released in him supporting Hillary Clinton. How would you a grade that? Well, I think the video tape piece is fine for what it is, but you know, it's a well well done thing.

I think the what you what you really want to focus on is just the extraordinary degree of political difficulty that faced um all of the parties involved coming out of the California and other primaries on on Tuesday, and they handled that that minuet, that choreography was handled extraordinarily well, with a huge amount of cooperation between the White House

and Hillary Clinton's team in Brooklyn. Well John Heileman, I often end to you your job, isn't such a fascinating year for politics, And if you're fascinated with politics, you better watch with all due respect, Monday through Friday weeknights at five pm on Bloomberg Television. You can listen on Bloomberg in Washington. I'm Kathleen Hayes. This is taking stock on Bloomberg Radio.