From Mahard.
We're Innovation, Money and Power Collie in Silicon Valley, NBN.
This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.
Live from New York and San Francisco. This is Bloomberg Technology coming up. The race to reward the buy An administration is against the clock to complete chipsack deals with top companies before the Trump takes office.
And come to Saudi Arabia, the country's one hundred billion dollar pitch to become an AI powerhouse hub.
And draftking shares.
They bounced back after earnings and a tough end of the year for the online sports spelling company. We speak with the CEO, but first let's check in on these markets.
Because I'll give you a five day chart.
Today we're just flat, slightly low on the Nazak one hundred, coming off of those record highs, but we power to new records on this particular benchmark. A florry of earnings is something we need to dissect. So two is a fed Rake cup that helps us push higher, but of course the election result. Also, we're up five point two percent, the best week since mid September.
Then what are you watching on the.
Micro So I think We're still in a stage where you look at single names and we're thinking about winners and losers. Post election day, Tesla continues to have momentum. It is trading at its highest level since early May of twenty twenty two, gone beyond a trillion dollars of market cap, whether it closes there or not.
But there's the association.
Trump with Musk, and then there's the analysis of whether Trump policy adjustments will impact negatively or positively that name. Elsewhere, there is a scramble in DC in across this country in the chip sector about what happens next. Intel is modestly higher in the session, but on the week over five days on track for its best week since June.
Could it be a beneficiary of the Trump administration? What Bloomberg is reporting is that deals are done, negotiations settled for Chips Act funding, but in some cases is their renegotiation to try and actually get access to money through the Biden administration before Trump two point zero takes effect and President lank Trump takes office in January of next year.
Care I know Pat Gelsinger spoke to you after the earnings with a frustration at how slow that money has been coming out of the door. Ed, let's discuss that all a little bit more from Bogs. Mackenzie Hawkins has a great piece out just talking us through how chip companies are basically racing, as is the Biden administration, to get access to that Chips Act funding.
What is the latest.
So earlier this year, the Biden administration announced a slate of multi billion dollar awards for some of the most important companies in the semi collect industry to build factories on American soil. The funding comes from the Chips Act, where she signed in twenty twenty two. It's a major bipartisan initiative to revitalize the American industry. Since those announcements, companies have been going through pretty onerous due diligence, and
some of them still haven't reached final term sheets. So now the Biden administration and those couple of companies in particular Intel and Samsung and Micron are the big ones that we're watching, are trying to get those incentives locked down so they can get money out the door before there's a potential for renegotiation under a Trump admin.
Intel Micron two of the names I showed a moment ago. Micron lower in the session. Sources are telling us that those names, the eyes are not dotted, the t's are not crossed. Which areas do they still have to negotiate McKenzie.
It varies by company. In Intel's case, part of the hang up is over what's called a change of contract provision, which is a fancy way of saying what happens if Intel spins office manufacturing business or is acquired in part or in whole. Now, Dolsinger has said we're going to keep Intel together. Intel has said it's making good progress on the award negotiations. But you can imagine why that's a sensitive provision with a company that is going through some serious financial troubles.
The key issue here is, as you said at the top, this is bipartisan in nature. So where might we see changes made. We have heard in recent days weeks key podcasts, Trump really rail against what he sees is well money out the door when he thinks Taris would just bring TSMC to build in the US, for example.
The general consensus among industry lobbys and government officials in Washington is that the broad contours of this program will stay the same. It passes bipartisan support. It was Trump's first administration that recruited TSMC to Arizona in the first place.
But Republicans are already taking aim at what they consider it to be social provisions of the Biden administration's implementation, things like requirements for childcare facilities, or expectations that companies will work with local labor unions or try to limit the environmental impact of their facilities.
Bimberg's Mackenzie Hawkins, thank you for your reporting. Let's get the markets perspective, bringing Eric Friedman, chief investment officer a US Bank Asset Management. I think we start with semiconductors, right. I talked to the beginning of the show about still trying to discern the winners and losers in Trump two point zero through that lens. How are you viewing chips right now, Eric.
Yeah, we're still favorable on the ship space. I think the distinction that we're really trying to make is number one in terms of the beneficiarias of AI. That is certainly a story that lots of people talk about, because there is still some concern in terms of hardware and peripheral sales, just you know, with a weakening labor market, some softening not just in the US, but across the globe, what does the upgrade cycle look like? What will corporate
capex specific to peripherals and hardware look like. We're seeing some stabilization aad but really not necessarily an uplift, So, you know, probably more the idea of will we see diffusion of AI chips beyond the hyperscalers? Again, hyperscalers have a ton of free cash flow, and that's what we've seen consistently throughout this earning season, and so the ability to almost self fund AI chip demand we think will continue. So I think there's all almost a business to business
versus business to consumer angle. We're probably were in the business to business angle for chips. But then more specifically, will we see that diffusion out beyond again hyperscalers, Will AI chip growth again meet and demand? We still think there's a backlog there.
That's why we're still bullish.
Eric, how's the US Bank Asset Management team modeling for Trump tariff policy?
Yeah, I think it's important to really discern probably by country and by region, and I think that almost a knee jerk reaction that we saw heading into election day and then the immediacy following the election, is that look, there would be this you know, almost broad tear iff policies set across not just China, which is a very common refrain from both parties heading into the election, but also you know Western Europe in particular, and if you
look at the performance in particular of EFA again developed international stocks, you look at what's happened within the currency realm, there is still this this view that, look, tariffs are coming.
I do think that our modeling work suggests that differentiation is probably an underappreciated point right now in the marketplace, so as we await again not just the specifics on what tariffs looks like, but also who's going to be in the cabinet that can have a material impact on just again maybe the glide path of what tariffs look like.
Last thing I'd say is this, there's the possibility of more of a glide path approach, almost a in initial set and then perhaps an expansion depending on success as well as depending on how the other side reacts. The reaction function of those impacted by tariffs is one that we again have to also model in and something we're very focused on.
To that point, has any of your feelings changed on big American companies with large exposure to China do get more nervous around that or actually does things stay the same?
Yeah, caroly I think it is a bit more nervous. And when I say nervous, the range of outcomes that we're modeling has to expand, and I think that if you look at, for example, what's happening in the Chinese stock market review as completely anomalist, that is more of a policy driven China really trying to regain some of the spotlight with the challenges they have structurally within their economy and most of the issues that we're.
Seeing within the supply chain.
That's the part that we think is key, and there was a lot of rhetoric and obviously discussion about the supply chain and what requirements were going to be really imposed, if you will, pre election. Now that we have the election results largely behind us, the extent of the supply
chain is probably our next area of focus. So I do think that in terms of our modeling work and if we're looking at the range of opportunities and considerations, it's widened, but again having more of a bias towards more on shoring and the potential of more inflation we think is now our base case, probably more so than it was two or three weeks ago.
Talk to that inflation because we've had a raft of consumer facing tech companies come out with their earnings and they move on the day to day. Not individual names, but more broadly tech exposed.
To the consumer.
Are they going to have a better time of it or a harder time in twenty twenty five if inflationary pressures are there, Yeah, I.
Think that on balance, you know, we're still optimistic about the consumer, especially amongst the middle income and upper income consumer in the US. We do think there is some level of stability in continental Europe. I'm not saying it's certainly a gangbuster a consumer electronics demand cycle, but that idea of the quote unquote case shape recovery, we think is intact one of the things that we've really looked at.
In addition to again our role as a bank, we have a lot of purview into delinquencies, We have a lot of understanding what's happening within credit flows, and there is a very market difference between middle and upper income consumers and lower income consumers. And what I mean by that is, if if you look at at just the bar that the lower income consumers have had to overcome
expenses on rents, expenses on credit cards. Those are going up, and so that marginal consumer who's maybe lower end, you know, consumer electronics demand is probably going to be challenged for some time. We still think that middle income and upper income consumers will spend, so we think that that that refresh cycle will exist.
On balance.
It's it's still okay, it's really not, you know, Carolin, I'd say gangbusters at this point.
Right now, I Friedman of US Bank Asset Management really appreciate you coming on today. Meanwhile, coming up Saudi Arabia betting b on Ai for their potential one hundred billion dollar investment.
That's next. This is a bluebot technology.
It's time for talking tech and first stop. Sony lifts its sales out look. The Japanese tech a saw strong music sales and a surprise boost from its PlayStation unit due to sales of the video game Black Myth Wu Kong. Sony says it now expects a net revenue of eighty three point two billion dollars plus. By Doo is set to unveil a new pair of AI smart glasses. The likes of which rival Metas ray bands. According to sources, the Chinese search leader plans to introduce the device, said
it's Bydo World event in Shanghai next week. Sales of the glasses could start as early as twenty twenty five and would likely cost less than Metas two hundred and ninety nine dollars price point, and Nvidia has named NASA veteran elean Na Choa as a director. The move bolsters and videos board to thirty members after the AI rally turned the company into a Silicon Valley titan. The Choa previously ran NASAs Johnson Space Center in Houston and was the first Latina astronaut in Spacekroen ed, let's.
Talk to Saudi Arabia right now.
It is set to make a big push into artificial intelligence, investing up to one hundred billion dollars in new projects. We're talking data centers, startups, other AI focused infrastructure.
It's all according to sources from More.
We welcome Bloomberg's Tom Jarles on now to talk about this was initially potentially an agreement. We've heard Alphabet Google helping fund AI focus in Saudi Arabia, but this is much much bigger in scale. Now.
There's a lot of ambition behind this project, Caroline. What the Saudis are trying to do is make sure that they have a seat at the table part of the AI revolution.
What can they do? They have a lot of.
Money, they're not and they basically there's a lot of money and they want to invest in infrastructure. Something that we've been writing about and talking talking to you about for a long time is the need for all of the data centers, all of that computing power that's necessary to drive generitive artificial intelligence. The Saudis have plenty of
resources to help invest in that. They are putting a lot of money and time and energy into this effort that they hope will essentially put Saudi Arabia on the map as a major force behind generative.
AI code name Project Transcendence.
According to our reporting, I think what we know from our reporting, tom Right, is that it's almost a quid pro quo that Saudi's ready to invest hand over money to startups, big name players, but in return they have to have a presence in country.
That's right. One of the conditions is they want to see those operations have a strong to hold right there in the Kingdom. Something else that you need to bear in mind when you look and when you think about the role that the Middle East is going to play investing in global startups and investing in this Again, I keep referring to it as a revolution because it is transforming the way we do business, the way we live our lives.
Something that's really important, something that we've seen come up time and time.
Again, is the West, led by the United States, wants to ensure that the companies that have a really strong stake in AI, in these startups, in these global startups and these global businesses, is that they be allied with the West.
Something that we've seen before is that when.
When parts of the country, parts of the world excuse me, become too closely allied with state China, that starts to make people nervous. And so one of the things that you're going to see is if the IF US companies are going to take part in this, they're going to want to see the Middle East allying itself with the West and away from China.
Interesting, So that's sort of the global context.
When you get into the nitty gritty, it's going to be the PIF that's their sort of sovereign wealth fund aligning themselves and co investing with big international companies.
It's going to have similar feel to it, right than al At. Can you just spell out how the funding might look.
Well, well, we're still getting our arms around that. We know that they want to invest in startups, they want to invest in the infrastructure. These data centers cost a
lot of money. All the servers, all the chips, all this computing power that's needed to generate to for generative artificial intelligence, the chips themselves, and the equipment needed to build the chips, and you see the potential for Saudi Arabia to become this major world center of global of the global infrastructure needed around artificial intelligence.
We talk a lot about the role that Taiwan plays.
We talk a lot about the US and the Chips Act and its desire to bring chip making capabilities in the US. This is Saudi Arabia saying we want to have a stake in this as well. We're going to incentivize you to come to build and invest right here in our backyard.
Blomberg Technology Senior Executive Editor, Tom Giles, thank you, Happy Friday, boss, right shares of draftings Honestly bouncing all over the place, but currently up almost five percent after reporting third quarter results.
Look at that stot Go five percent game.
The Sports bending company cut his full year revenue forecast below analyst estimates reported are wider and then expected loss per share. Let's gets Drafting CEO Jason Robbins, There's this idea that the streets fixated on that there were customer friendly outcomes, particularly in the realm of NFL. Is that true to your mind? And what's a customer friendly outcome?
Well?
Q three actually we said that we had neutral outcomes, so you know, we had exactly kind of as we expected, and we ended up having a beat in Q three, which is great. Q four aside from these outcomes, would have been on track for the same So you know, basically, what it means is that the favorites one a lot and the big name players scored touchdowns and had a lot of And sometimes that happens in sports. You know,
the book sometimes wins, sometimes the customers win. And it's hard to know, right because we're only you know, halfway through the quarter yet, how it's all going to end. It could easily swing the other way, but at this point for the quarter, at least the five weeks that we're into it, the customers are winning, and you know, over the long term, that's great.
We need our customers to win.
Sometimes they want to win sometimes that's part of experiencing the product. So we're really excited though that the fundamentals are super strong. We saw three hundred BIPs year of year improvement in both promotionally and gross margin percentage. Cacs were down twenty percent in the quarter. Lots of really good things going on.
It's well, there's lots of things, full stop going on.
Let's get technology in a little bit.
But in a week where you have a US election and it's getting towards the end of the year, the holidays are fast approaching, how does sports betting stand out? Like what is the consumer attitude towards placing a bet in a week like this one?
Well, obviously a lot of distraction with the election going on, but you know, as you might imagine, people were even talking about speculating on one side or the other the election markets, and that was available in certain places too. So you know, I think it's very much part of the culture now that people want to be, you know, a participant by having an idea, a prediction, a viewpoint
on what they think is going to happen. And I think betting is really just you know, part of that overall trend.
Jason, I want to jump in on that polymarket call a lot of people's attention.
Would you go there, would you expand in pass sports?
Well, we would only do it if it were in a legal and regulated fashion. So you know, these types of markets on elections are regulated at the federal level. It's different than the way betting is regulated. You know, it's something that maybe we would you know, consider looking
into before the next election. But I do think that it's only something that we would do in a legal, regulated environment, which is what differentiates us from some of those that are offering and now some are offering it legally now too, there is a legal framework for it as well, but not everybody is.
Let's just talk about therefore that passage of legalization. Is that going to be easier under the next administration? I mean also just from the point of sports betting too, we see Missouri Common Line for example.
Well, definitely for us, it's really you know, the states that are legalizing and so a lot of what we were watching were the various outcomes and state houses and governors' races around the nation. Obviously, you know there is some impact from you know, federal government impacts every industry in some way or another. But you know, taxes other ways, corporate taxes meaning but you know, in terms of legalization,
our action is really at the state level. So as you knowed, Missouri's big win passed about initiative to legalize sports betting, and very excited about that. Missouri is the eighteenth largest state and the huge sports state. Really great sports fans in Missouri, so excited about that one.
Hopefully that'll get.
Up and running soon, and you know, hopefully we'll see even more action when the legislators come back in session.
In Kew on Jason, we focus a lot on this program about how sport is access the technology right, a transition from linear television to OTT and I'm fascinated by how the betting markets either benefit or don't benefit from that.
Right.
The consumer has so many options about how to watch sport and pay for it. You know, it's astonishing. Actually what flies out of my bank account each month? Is that a tailwind or a headwind to you when you're thinking about bets being placed in parallel.
Well, I think it's actually a tail in that it's part of the overall trend we're seeing, which is sports and interest in sports continues to grow, and betting is a part of that. They're very intertwined, so I think they feed off each other as more and more, you know, people can see more and more sports from around the world, not just their favorite sports or their favorite teams, but they can watch any team or they can watch any sport, and that access is there that's going to be a
benefit to our business. But it's really part of the same overall mega trend, which is, you know, information is easier to come by for the consumer, and the consumer wants to be a more active participant because they have more information and have a viewpoint on things. And I think that's why you're seeing this mega trend around betting that you know, continues to grow the overall industry in the US and really internationally as well.
Mega trend that you're going to continue to enhance products into. Jason Robbins, we appreciate your time DraftKings CEO on the back of the earnings, and we'll have more from Draftkins next week. Tune into Bloomberg Chief Future Officer conversation with a CFO coming up. Meanwhile, we've got plenty more to be dissecting when it comes to tech earning season as it continues, will bring you the latest out of pinterest out of Airbnb so much more. At the moment, pinterest
ed off by more than fifteen percent. This is as look, the numbers look good from a revenue perspective for this quarter, but really it's the forecast and they increase in spending on AI that's got people's attention. I'll come back to Bloomberg Technology. I'm Caroline Hide in New York and I.
Med Ludlow in San Francisco.
Pic check on these market said, because what a week when it comes to the macro policy, when it comes to Fed rate cuts, when it comes to earnings, when it comes to the election outcome. We are completely unchanged on the last one hundred to day, but it's not unchanged on the week.
We're other more than five percent.
Best week since September the thirteenth through really seen big tech on top after those particularly electoral results. Looking at Trump media back higher today, it sunk significantly more than twenty percent yesterday. Maybe rumors swirling around the market that the President elect Trump could well sell off some of his holding in DJT. Of course that's the owner of the parent company of his media outlook.
But actually he says no.
He folks back on that particular one, saying he's holding We're up nine and a half percent on the day, but really has been a tell on his electoral chances and then success. I'm looking at Pinterest, though off by fifteen percent. We're going to dig into these numbers in a moment. Ed this is a raft of earnings, and
we're seeing Pinterest at look double digit revenue growth. We're seeing still living up to expectations when it comes to forty percent growth in adjusted earnings per share, and they build on their overall user base, but the forecast.
Looks a little bit weak.
We're worried about advertising trends when it comes to food and beverage in particular, and a spending on AI that might top half a billion dollars in the fourth quarter, and we're seeing the spending also being a warring for Airbnb. They're investing in product, but that means margins are going to be crimped. It to manage though to show pretty good numbers when it came to their fiscalur quarter and
revenue increasing. Not so for paramount revenue. On the downside, for Paramount down by about five percent year over year, we're off by four and a half percent. Of course, a company in transition. We understand that the deal with Ellison will be tied up by the first half, maybe at least by the second half of twenty twenty five. Good TV results relatively speaking, good streaming, but film was a weakness.
Let's time into it.
Yeah, let's get some team coverage and bring in bloombergs, Ryan Blaceelica and Ryan. If you go under your bio on the Bloomberg terminal, literally every single technology company there is in Tickery listed. I don't envy you, But in this week, of all weeks, many names reported carry has been over some day. Is there a common theme between the technology sets to names that posted results.
Hey, good morning, thanks for having me. You know, I would say that there's really been sort of a mixed bag. We've seen some companies come out with some very strong forecasts, some very strong growth, and we've seen some you know, real double digit gains and the waker results. But there's also been a number of companies where, you know, and you can point to any number of factors behind it.
Maybe the outlook was a little bit weak. Maybe the stock just had rallied so much going into the report that it just like had to give some of that back.
There's really been a mixed bag here.
I'd say on balance, things have been you know, generally pretty positive. But it's certainly easy to you know, point to some stocks at you know, for whatever reason, just seems like they weren't able to continue with some of their recent advances.
Can we just go in more on Pinterest because this is a big set off and in fact it is underperformed the entire year. Yes, it rallied last year, but why when it's actual PE ratios forward looking PEE ratios are much cheaper than rivals like Meta.
What is there a concern here?
Right? So you mentioned the week forecast. That's really sort of the key issue here. You know, there was a lot of optimism building about this company a couple of months ago, some analysts commentary, some upgrades, some new analysts coming in to say, you know, they're pretty positive on the company's growth potential. From here, this forecast does kind of you know, throw some cold water on that thesis. So we are seeing it pull back. This is one
that's really been sort of struggling. It's hard for these smaller social media companies to compete with the metas of the world, to compete with the other major digital advertising companies, and this is just sort of another example of that.
Ryan.
The big one November twentieth market clothes in VideA is that.
Everything it certainly feels that way.
I mean, so far this earning season, we've gotten some pretty positive data points that would seem to augur well for Nvidia.
Notably all the big cappex.
Spending plans from your megacaps, all that points to you know, on going demand for AI chips, ongoing demand for you know, everything surrounding artificial intelligence. That's pretty positive, you know, for Nvidia's growth outlook from here. Of course, this is you know, one of the big gainers of the year. There's a lot of concerns about, you know, how much more can this company keep rising after it's done so well so far in twenty twenty four, especially following you know, last
year's big advance. So I think there's a lot of you know, there's reason for optimism here. There's certainly a pretty strong sign so that the company's demand drivers are intact. But you know, is that going to be enough given how much it's moved up, given some of these you know, sort of mixed signals from other companies. You know, that's that's really the uh, you know, the three trillion dollar question.
How much it's moved up is almost two hundred percent. Yes today, Randalstelica, we thank you so much. Let's get more markets perspective for you now, bring in Fiona Sincoto, who's senior analyst for City Index Financial Markets.
Boy, what a week.
Let's just focus in on, like really the people that pick up the phone to post Wednesday and throughout the week. Is it one of optimism around big tech and its continuation of massive market cap increases.
Yes, I mean the bottom line is yes, you know, and I think that optimism was reflected in what we saw happen in the stock market and what we've seen happen in the stock market since Trump was declared victory of Trump one. So yes, you know, it seems big tech seems to be a big favorite.
Once again. We're just sort of coming into the elections and before.
The elections, there was this sense that sort of big tech was a little bit sort of.
You know, out of favor.
And we had seen the Nasdaq under performing, the S and P five hundred and the Dow Jones, which we're trading at record highs.
But we've seen that really turn around.
You know, Nasdaq's now trading at record highs as well.
We've seen a phenomenal.
Rally in tech dog and I think there is a lot of optimism that this can continue. I mean, we've seen you know, stocks such as Google, Tesla, We've i mean, Apple's underperforming a little bit compared to the rest, but there's a lot of optimism surrounding it. And basically this is on the back of expectations of a more favorable regulatory environment.
I mean, we've got other factors that are playing in.
You've got the optimism surrounding end of year seasonality, which tends to work in favor as well. Federal reserves still cutting interest rates, albeit more gradually expected.
So you know, there is a positive outlook.
There are some risks ahead, but that doesn't seem to be the focus right now.
Look, there are fundamental risks ahead on your side of the Atlantic where the bo is cutting but also talking about inflationary pressures going forward. You've got the similar echoes here in the US. I just want to dig into Europe a little bit more though, because what was the reaction when people are wanting to get invest in European tech but it was a big week for the German government as well for you, or is it all about us still over European over international flavor?
That does feel like the way that it is right now.
I mean, they does feel like there is a lot of uncertainty still in Europe. There seems to be concerns regarding, as you said, the political situation in Germany, fragile growth, just broadly speaking, the outlook doesn't feel the same. And then on top of that, now with Trump sort of taking the helm in the US, they're also concerns what that might mean as far as tariff's to concerns. So, you know, geographically speaking, the US is.
Now, without a doubt the preferred.
Geographical location for investing, particularly in big tech.
I think you can get.
Some feed across into Europe, which is going to be beneficial, But I think we're going to see the big positives play out more in the US compared to other areas.
You know, is there a single name that clients, investors have been most focused on this week?
People phoning you about.
Tesla? What one? Yeah, because we've obviously we've had sort of Trump and and Aneno.
Muss cozying up recently, and that doesn't seem to be ending any time soon. So, you know, Tesla has absolutely outperformed and I think there are expectations that it will continue to do so. Now it's a bit interesting the Tesla's story because obviously there is the expectation that actually Trump may reduce benefits for the evy industry within the US, But you know, Tesla's already such a big, well established company that actually that means it's going to benefit from
that disadvantages to its competitors. So that's just one of the reasons that we think that, yeah, that Tesla's going to be well. It has been very much on the on the phones. It's been mentioned, our clients are looking at it. It's seen volumes go through the roof, and the share price after after having a dodgy starts the year is looking much better.
Is it even possible to model into an equity a relationship between the world's richest man and President elect Donald Trump.
The good question, And I mean it's not something that we would typically do or have had too much experience doing previously, so, but I think it is.
Definitely something that needs to be taken into account when we're looking at tests evaluations going towards twenty twenty five. And I think that as we've seen, you know, it has been reflected in the optimism in the share price.
Yeah, I just reflect on Gary Cohne and Steve Manouchin and somewhat analogous, but maybe they're not Furnising Kota, Senior analyst of City Index Financial Markets. Happy Friday, and thank you very much. Coming up on the show, it's been a stellar week for the crypto community as Donald Trump's victory paves the way for deregulation and potentially more innovation in blockchain.
We'll discuss neat Oh, look a bitcoin.
This has been bog technology. This is bitcoin, and it's trading at its highest level ever, just below seventy six thousand US dollars. Be token, it's worth saying again out loud, highest level ever.
That's all bitcoin caroc.
It is ed and there's a reason for it because many feel that the next administration, and in d Congress, we particularly crypto friendly Delta Blockchain Fund general partner KeVita Guptra, is with us, will it be What action do you need to see first and foremost to make the new record highs vindicated?
Hey, go line just the President elect and then of course you have Elon Musk standing next to him, and then you have all the BAC which has really donated this time. This election has been one of the biggest pack money going into a political motive and we literally saw such a positive return out of it. Everything is up. You have seen bitcoin all time high. Most of the currencies are twenty to forty percent up, but look at even dodgecoin. It has literally jumped up twenty one percent.
There.
Look at some of your investments.
You were like first checks into some significant DeFi projects. One protocol, for example, Polygon, has had an epic time because it, along with unisworp, was kind of singled out by the SEC is potentially not living up to what is or isn't a security. How important is a change at the top of the SEC and clarity around regulation going forward for projects and protocols such as.
This that is one of the main reason for a big boom, Caroline, because we are seeing the whole DeFi ecosystem, certainly uniswap RVE and all the DeFi protocols suddenly bumping up their prices up to twenty to thirty five percent jump because I think now everyone is expecting a change in attitude with SEC with the new administration on the him via President Trump has actually said in one of his rallies that he's going to change the current SEC
commissioner and going to have much more pro friendly, pro friendly agenda.
So everyone is expecting.
Much more clarity on regulations and the feeling but I kept on feeling within the crypto ecosystem is that it is going to be Crypto for America and America for Crypto after a very very long time.
Cove to prior to the election.
Many hello, by the way, I was having some fun with a bitcoin chart, but there are some serious things. Like prior to the election, a lot of people came in this program and said, well, look at the inflows the ETF products, how significant that is. The harvening and then sort of the vibe shift. Things were more positive around the underlying technology. Well before we knew the outcome of this election. I wonder how important those factors still are whatever happens with this Trump presidency.
Absolutely, just the day of the election, ED look at the amount one point two eight billion dollars in flow for bitcoin ETF, seventy eight million dollar in flow in twenty four hours in eat in eat ETF. Now people are expecting solana ETF near ETF. But at the same time, a lot of IPOs companies which have been sitting quite like encourage circle chain chain analysis, bunch of them, so they are basically have been sitting Falcon ex just been
sitting and wading. And we had that conversation with you like three months before the election, like are we going to see a big IPO boom? Are we going to see a lot of legal construct Are we going to see a lot of ETFs coming in? And I feel like over next six months it's just gold for the crypto industry.
Will Trump open the door to modernization of the financial system.
I think the most important thing which we have been asking for over eight years is the clarity on regulations. Everybody, every crypt founder across the world wants to work with the government and sec in any regulatory body to have clarity, and I feel like the biggest pathway which America can set trend is to have that legal clarity and to create a safe environment for retail customers and for technology
builders to work together. So I think that's going to be the biggest reason for all these movement of prices to be.
Up Delta blockchains. Cavita Gupta, really great to have your take today. Thank you.
Some TikTok staff and creators are hoping President elects Trump may become the social media app savior as it faces a potential ban come January. Bloombergs Alexandra Lavine joins US now and there are many questions. I mean, President elect Trump has hinted that he opposes an outright ban, but there's a legislative action underway.
What have you written about?
Well, I think that really since Biden had signed this law earlier this year that would effectively ban TikTok in the new year, unless it's China based parent company by Dan sells it. The big question is the big question has been is this actually going to happen? And I think the feeling was really if Harris is elected that she would sort of finish the job that Biden had started.
Now that Trump.
You know, now that Trump has been elected, he was originally the president who tried to ban TikTok. Back in twenty twenty, on the campaign trail, he did a stunning one to eighty saying that now he doesn't believe in a ban. And so I think the reason why there is now even more uncertainty than there was prior is because his rhet his rhetoric has completely changed, leaving folks inside the company wondering whether he will in fact follow through on what he has said.
And then there's the closeness with Musk, who has X so whether he sees TikTok his arrival, even though perhaps he's a bit more pro China than others, can you just give us the very next step?
What do we look for in the legal action? At least?
So there are a bunch of things that Trump could try to do once he takes office to try to reverse what has been done or try to stall it. And I think though a lot of the things that he could do would be really difficult, they'd be uphill challenges, they'd be politically sort of unpopular amongst folks in his own party. Who were really key to getting this law to force a divestiture or to be on the platform getting it across the finish line in the first place.
He could come up with another plan that satisfies both the company and the US government on national security. He could look for an American buyer, and he's got people who are certainly interested, who are political and political allies of his worlds, yes, exactly. And he could also try to get Congress to repeal or amend the law that they had passed. I think, though, the most likely thing, and the path of least resistance would be to let this legal process that you've talked about play out on
its own. So we're expecting a decision in December that where the courts in DC will rule whether the law that President Biden has signed should be overturned or whether it should be upheld. And then it's likely that legal proceeding following that that TikTok may well fight. We'll just drag on well past the January deadline for when the
band would have gone into effect. So I think the easiest thing for Trump would really be to sit back watch the legal process play out, and that way the legal process takes care of it without him having to be super proactive, and he then does not have to do a complete about face on his twenty twenty crusade against TikTok when he initially tried to ban it, and he would avoid then being seen as sort of softening this tough on China stance. It's been super central to his entire agenda.
Alexandra Levine, all things TikTok, We appreciate it. Meanwhile, like traditional media executives maybe Sad's Love, for example, ever at Water Brothers Discovery or Perry suk over a Next Star, see a possibility for more mergers and indeed deregulation as Donald Trump returns to the presidency. Neowberg's Kelsey Griffiths joins us for more. So M and A gonna suddenly launch through when it comes to at least the more local news and TV side of the equation.
Well, if the broadcast executives have their way, that's exactly right.
You know.
I think we've heard on Earning's calls over the last couple of days that these executives are really looking for a Trump administration that is more friendly to deal making of all kinds, whether that is in the broadcast space, whether that's in the content space, whether that is permitting some mergers that you know, maybe wouldn't have even been pitched under the Biden administration. So I think it has a lot of folks like really watching this space, Chelsey.
Let's think about a name like Nexstar, how its business is set up, but it's got some history with government agencies. What kind of happens to them under Trump? Two point zero?
That's right.
So Nextstar is the largest owner of local broadcast stations in the country, and they've previously tried to buy up more stations. They actually got in trouble with the FCC and had to pay a one point two million dollar fine earlier this year because as part of a merger agreement, they were supposed to divest some stations and they actually effectively maintained control of a station in New York that was at least what the FCC found and ended up
hitting them with that fine. So Nexstar has been looking around for a while for other ways to expand sort of their broadcast empire, and they're hoping that under the Trump administration, the Federal Communications Commission could actually get rid of some of the broadcast ownership restrictions that have held them back in the past, So some rule changes could help.
What about people who need the FCC or within it, That's right.
So we're looking at an incoming Republican administration across the government obviously, but that means big changes at the FCC. My sources are telling me that we are very likely to see the senior Republican at the FCC, Brendan Carr, be nominated as FCC chair and Car could, you know, really makes some big changes for broadcast executives in doing some irregulatory action that would benefit the broadcasters. He would also have some pretty big effects on the rest of the media landscape.
You know.
Carr has aligned himself with Elon Musk. He has talked a lot about TikTok and rolling back its presence here in the US over national security concerns. So it could be a very different FCC under Car. So we're going to be watching that too.
Bloombo's Kelsey Griffiths, great reporting and happy Friday, Thank you very much.
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