December 16, 2024 • 49 mins
Bloomberg's Caroline Hyde details Softbank's $100 billion investment in the US under a new Trump presidency. And Bitcoin's record high goes higher as MicroStrategy gets added to the Nasdaq. Plus, how businesses are preparing for an energy-intensive future to power AI.
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Speaker 1 (00:01):
From the heart where innovation, money and power Collie in Silicon.
Speaker 2 (00:05):
Valley, NBN. This is Bloomberg Technology with Caroline Hyde and
Ed Ludlow.
Speaker 3 (00:25):
Live from New York. This is Bloomberg Technology coming up.
Speaker 4 (00:27):
Soft Bank CEO Masiyoshi's son set to announce plans to
invest one hundred billion dollars in the US during a
visit with President elect Donald Trump. We're bringing the news
plus Bitcoin rises to a record high. I'm in microstrategies
inclusion in the Nasdaq, and Apple's got plans for a
new foldable iPad and aims to bring it to market
by twenty twenty eight.
Speaker 3 (00:48):
A first we.
Speaker 4 (00:49):
Check in on these markets which have a risk on
attitude to the day, as we anticipate key Fed decision
come Wednesday. Ahead of that, and as that one hundred
a new record high. We're up nine tenths of there,
and chip maker is managing to drive higher Micron broadcon.
But also we're seeing Bitcoin up three point four percent.
We are once again escalating to new levels. We dig
into the reasons why, but of course trumping one of
(01:11):
them the focus on the new administration, but also micro
strategy like to be added to the Nasdaq. And what
that means for its own purchases of bitcoin. We're up
at one hundred and six thousand dollars per token. But
the big breaking news of the day when it comes
to technology is, of course, according to the people familiar
that SoftBank CEO mas Yoshi Son is set to announce
plans to invest a whopping one hundred billion dollars in
(01:33):
the United States over the next four years. It's all
according to sources, as we say, and this is as
he's planning to be meeting with President elect Trump today
and mar Lago. We're expecting Donald Trump to speak in
a few moments. Time for more, let's bring in Bloomberg's
Peter Elstrom and for while. Back in twenty sixteen, we
saw big promises made by Massa and this time he's
(01:53):
doubling them.
Speaker 5 (01:55):
Yeah, you'd be forgiven if you thought this was deja vus.
It was eight years ago, in fact, eight years ago
December when masiosche Son went and met with Trump and
he talked about investing fifty billion dollars. Now he's doubling
that pledge. It's one hundred billion dollars that he's planning
to invest. According to our sources, and also he's planning
on creating and estimated one hundred thousand jobs in the
(02:16):
United States. So this is the first major investment that
we've seen after Trump's win. It's certainly a pledge towards
what Trump has been trying to do in terms of
reinvigorating the economy. For SoftBank, it's also a pretty big
push into the United States. Last time when they pledged
fifty billion dollars, MASA had just raised this vision fund.
He had plenty of capital. He put investments into companies
(02:37):
like we work in Door Dash and plenty of others.
But right now he doesn't have that kind of cash anymore.
He only has about twenty five billion dollars in cash
on the balance sheet, and yet he's doubling that pledge.
Speaker 3 (02:47):
So we had some work to do here, had some work.
Speaker 4 (02:49):
We're also wanting to know the finer details of where
exactly he allocates. He's been all in on AI saw
this curve coming before many others, of course as evidence
his arm holding's acquisition and then taking that to market.
But where else do you think he'll be investing in
the United States?
Speaker 5 (03:08):
Yeah, well, more recently, including at SoftBank World this summer
He's talked a lot about artificial intelligence and how he
wants to invest even more and more kinds of companies.
So he is putting money into open Ai, in particular
to Pioneer of course behind chat GPT. He's put in
five hundred million so far, and he's right in the
process of a tender offer now where he's offering open
Ai investors the ability to sell him their share so
(03:31):
he can get another one point five billion dollars. But
his ambitions go far beyond that. He's talked about the
need to have more alternatives to in vidio chips in particular.
He knows that energy is a huge issue for AI
right now, so he wants to make investments there. He's
also been investing quite a bit in autonomous driving, so
he's a lot of ambitions. He always has a long
list of deals and investments that he wants to make,
(03:52):
so we're going to see where exactly he puts that money.
But it is a lot of money right now, and
again he doesn't have that cash on his balance sheet.
Speaker 3 (03:58):
He has to be able to go out and get
that close.
Speaker 4 (04:01):
Peter, that's from we thank you so much, bringing us
up to speed on the anticipated announcement. Now, let's keep
discussing trends in tech markets more broadly, what this influx
of money into AI really means for the US at
least densisms with US directoral quantitative market strategy. Over at Fidelity,
we love having you on because of the historical context
you can put today's investment advice. But I mean we
(04:21):
look at what's happening in the market. When you're thinking
of a juggernaut of one hundred billion dollars coming into
USAI and energy, where it feels.
Speaker 3 (04:28):
Like a lot of money has already gone that direction.
Speaker 6 (04:30):
Yeah, Well, when you readbase it relative to sales or
relative to market cap, I mean you haven't really seen
that much of a move.
Speaker 3 (04:36):
I think we talk about this all the time with.
Speaker 6 (04:38):
Money funds on sitting on the sidelines, how much cash
is on the sidelines, or how much cash in terms
of nominal capacs.
Speaker 1 (04:43):
But when you actually.
Speaker 6 (04:44):
Renormalize it, given the move that we've seen in the
marketplace over the last five years, it's a much lower
percentage than you would think. Interestingly enough, specifically for tech stocks,
and I would say more specifically for software stocks, cap
BAX is very much an alpha fact, meaning that that
spending is usually a good thing for stocks because it's
(05:05):
very correlated to earnings growth.
Speaker 4 (05:07):
Okay, so I'm not going to ask you is to
opine as to where exactly a Masayoshi Son is going
to be putting his investment. But if you're looking at
an every day, whether it's retail or it's chootion investor
right now allocating to opportunities, do you have to be
put off by some of the valuations right now or
actually do you keep chasing the momentum, keep chasing the
names that have.
Speaker 3 (05:26):
Done well well.
Speaker 6 (05:27):
It's interesting. So technology has had a little bit of
underperformance over the course of the last six months, and
because earnings growth and free cashulow has been so strong,
you're actually out of anomalist valuation situation. So I define
anomalist valuation as top quartile. So we have fallen out
of top quartile levels, which is where you see the
risk reward become fairly negative for tech. Now as we
(05:49):
enter twenty twenty five, coming out of that top quartile
valuation zone, I actually think it sets up for a
pretty positive risk reward. And for all the talk about
momentum stocks on our day, when you look at it
specifically within technology, I'm not seeing any anomalous behavior, meaning
I'm not seeing top quartile road to performance over the
last year, and I'm not seeing top quartile valuation on
(06:11):
that top quartile of momentum, meaning that because earnings in
free cash flow are so strong, there's no valuation situation
where you're saying you're overpaying on a consistent basis for
technology stocks that have been leaders in the S and
P five hundred Wow.
Speaker 4 (06:27):
So it still feels like there's basically opportunities in the
mag seven.
Speaker 3 (06:31):
What about the next tay down?
Speaker 4 (06:32):
We started to see software names really come to the
rise as people started to reallocate perhaps from the semiconductor
trade out to the Kila applications being born out.
Speaker 3 (06:41):
Is that something that you'd like to see moral No, that's.
Speaker 6 (06:44):
A great question and a great point because of the
three big areas within technology, if you say hardware, software,
or semis, where are the opportunities. It looks very interesting
on the data and software to me, given the strength
and free cash flow and earnings valuations, we're actually in
the bottom half of the distribution a valuation perspective when
you look at all the data back to nineteen sixty two.
And what you see is that very much empirically skews
(07:06):
your risk rewards on odds for the software sector specifically,
so when you have strong growth and valuation support, it's
a very positive risk reward for the sector. Of those three,
hardware software and Semis software is the only one of
those three industries that looks like that. So I think
as we enter twenty twenty five, that's where it looks
like the opportunities are to me.
Speaker 3 (07:28):
And in the US todays, yes, in the US.
Speaker 4 (07:32):
What of the US exceptionalism on this trade that we
all keep talking about, I mean, is it going to
dominate for twenty twenty five?
Speaker 3 (07:39):
It looked to me it does look like that.
Speaker 6 (07:41):
So everything outside the US, whether you want to talk
about EFA EM or AQUI X THEUS, what you find
is that valuation screen looks like a quantitative value trapped
to me, meaning that when you've bought in that bottom
quartile relative valuation on earnings are free cash flow, you
only have thirty percent odds about perform. It's like thirty
percent is not zero. But at the same time, it's
(08:03):
hard to say that that valuation is a critical driver
and the reason why it's not a driver is because
often international stocks are cheap for a reason. Even on
a sector neutral basis, taking out technology medium stock to
median stock, the S and P five hundred outgrows their
international peers by about three to four hundred basis points
a year on earnings, and it's growing every cycle. So
(08:26):
unless you think something is going to change, that hasn't
been the case over the last fifteen years. I think
the risk reward is still more favorable.
Speaker 3 (08:33):
In the US. This is why your historical context so important. Dennis.
I go therefore to the macro picture.
Speaker 4 (08:40):
We are, of course seeing the micro news on an
investment coming from Massa, but we're also seeing the macro
news of we're waiting on rates to go down. What
does that mean for that cash on the sidelines that
still perhaps is waiting to enter.
Speaker 6 (08:51):
Yeah, so rates, let's talk about rates being an alpha
factor for the market. I think people get a little
confused in terms of thinking about whether or not the
playbook is a good thing or a bad thing, saying
rates are not the critical driver. Earnings growth is the
critical driver. So when you look at the FED from
a playbook perspective, sometimes the fed's cutting because they have to.
That's not good for the market. Sometimes the Fed's cutting
(09:12):
because they can. And what you see from a quantitative
differential from those like trying to divide those two is
your starting point on earnings growth matters a lot. Our
starting point of positive earnings growth usually predicts a more
bullish situation for.
Speaker 3 (09:26):
The s and P.
Speaker 6 (09:26):
Five hundred. You're starting level of the Federal Reserve matters
a lot as well, because that's essentially a mathematical definition
of the FED put meaning if the FED is high
relative to inflation, they can do something to the extent
that the economy is hit with a shock. That's a
good thing. That's our situation as we enter twenty twenty four.
And most importantly, the FED can definitively change willingness to
(09:49):
lend of banks because that's been in contractionary territory and
because that's likely improving earnings growth is likely to broaden
out in twenty twenty five, include those small businesses and lagging,
and that skews your risk reward being pretty positive as
we under twenty twenty five.
Speaker 4 (10:04):
But then, how risk hungry did the edges of the
market become. I mean, we look at a day where
micro strategy, which has basically been a leverage bet on
bitcoin hugely outperformed Bitcoin in and of itself, is not
going to be added to the NASDAC. I mean, are
we going to see more money flow to those sorts
of risky ridges.
Speaker 6 (10:22):
Now that's a great question. So I mean, without the
talking about the idiosyncratic names. When I look at quality,
which is sort of the opposite of the factor that
you're talking about, it's been a darling of a factor,
much like Lovall was only underperforming I think three in
the last twenty years. Well, that's left quality stocks fairly expensive.
And that doesn't necessarily mean those high quality stocks need
(10:44):
to underperform by a lot, but to the extent relative
earnings or those relative returns start to inflect lower, that
usually does lead to underperformance in the factor. So for
anybody with a quality bias, I think about scrubbing your
portfoli oh yea and thinking about better risk rewards in
what have been historically risky your names.
Speaker 3 (11:07):
Tenny's unbeatable, thanks for coming on. Tiny's s tism Happy.
Speaker 4 (11:11):
Holiday's director of quantitive market strategy at Fidelity. Coming up,
we're going to focus a bit more on Bitcoin and MicroStrategy.
Speaker 3 (11:18):
Of course, crypto bitcoin himself.
Speaker 4 (11:20):
And a new record high throughout the weekend and now
longest weekly winning runs is twenty twenty one.
Speaker 3 (11:25):
Will dig in.
Speaker 4 (11:26):
Also, we're going to be focusing on later in the
show a bit more about Vivendi.
Speaker 3 (11:29):
But look at it.
Speaker 4 (11:30):
It's currently don't look at Vivendi stock today because it's
currently distributing itself up and is breaking itself into three
different companies. But what I want you to focus on
is what CBC is up to at the moment, exploring
a potential purchase of a Vendi's Telecom Italia stake. This
is as we know that Vincenbalaure, the billionaire in charge
of Vivendi, is trying to make his assets work for him.
(11:50):
This is broomeg Technology and we are expecting President elect
Trump to speak live from our alago in a few
(12:11):
moments time. All eyes on that reported one hundred billion
dollar investment coming from Masayoshi's son into the United States
and one hundred thousand jobs to be created too.
Speaker 3 (12:20):
We'll bring you that as and when.
Speaker 4 (12:21):
It occurs, but for now, let's just focus on another
area that Trump has helped rally, and that is Bitcoin
rising to a record high, large part because of the
next administration supported digital assets, but also there's this optimism
about the upcoming inclusion of micro Strategy in the NAZAK
one hundred and what that means for future purposes and
purchases Isabelle Lee is here with more and mstr gets
(12:43):
into and as that one hundred, it means technically that
more funds will have to allocate to it.
Speaker 3 (12:47):
Right, It really is a big deal. It's really it.
Speaker 7 (12:50):
Represents kind of like this institutional acceptance of bitcoin, which
is interesting because micro Strategy, and it's called founder Michael
Salor has long been ridiculed by Wall Street a specialist
since they started just in bitcoin in twenty twenty and
today again for the six straight Monday, they bought one
point five billion worth. Their total cache is forty five billion.
But it's really that the stock has rallied five hundred percent.
(13:11):
But you're right around four hundred fifty one billion dollars
worth of ets track the NASTAC one hundred, so they
will all have to rebalance, ISABALLEI.
Speaker 3 (13:19):
We thank you.
Speaker 4 (13:20):
We'll have to cut it short there because we do
understand that President ect Donald Trump is now starting his
press conference in mar Logo.
Speaker 3 (13:26):
We're listening.
Speaker 8 (13:27):
We'll discuss a couple of points. We'll take some questions
later if you'd like. I'm sure you might have one
or two. I'd be shocked if you didn't, I'd be
very impressed. But I'm honored to welcome one of the
most accomplished business leaders of our time, the founder and
CEO of soft Bank. Everybody knows Masa Yoshi San. Masa
(13:48):
runs one of the largest companies in Japan and among
the most successful investment and technology companies anywhere in the world,
one of the most successful investors in the world. And
we've just included a very productive meeting, and today I'm
thrilled to announce that SoftBank will be investing one hundred
(14:08):
billion dollars in America, creating one hundred thousand American jobs
at a minimum. And he's doing this because he feels
very optimistic about our country since the election, and many
other people are also coming in with tremendous amounts of money.
Speaker 2 (14:25):
You probably noticed that the poll was just taken.
Speaker 8 (14:29):
Its business is literally in thirty nine years, has been
nothing like it. It's been the biggest increased small business
owners gave it a forty one percent jump.
Speaker 2 (14:40):
It's the biggest jump that we've.
Speaker 8 (14:42):
Had in thirty nine years, and nobody's ever seen anything
like it, and it's just they're very optimistic. This historic
investment is a monumental demonstration and confidence in America's future,
and it will help ensure that artificial intelligence, emerging technologies,
and other industries of tomorrow are built, created and grown
(15:04):
right here in the USA.
Speaker 2 (15:05):
One of the beautiful things about Massa is he's.
Speaker 8 (15:08):
Very much involved with emerging technology, probably knows it may
be better than almost anybody.
Speaker 2 (15:15):
So it's a great honor.
Speaker 8 (15:16):
And some of you remember after the twenty sixteen election,
also SoftBank committed to invest fifty billion dollars in our country,
and they did in a very place to say that
they kept that promise.
Speaker 2 (15:28):
In every way, shape and form.
Speaker 8 (15:30):
And now they're looking to do one hundred and I've
looked at their books. They do have the possibility of
doing more. I'm going to ask them to do a
little bit more. But first I'm going to ask him.
Speaker 2 (15:40):
To speak, and just to say a few words. Massa. Please,
thank you, thank you, please.
Speaker 8 (15:45):
You think, thank you very much, appreciate it, thank you, Helm.
Speaker 2 (15:52):
Thank you so much. I'm very, very excited.
Speaker 9 (15:55):
I would really like to celebrate the great victory President Trump.
And my confidence level to the economy of the United
States has tremendously increased with his victory. So because of that,
I'm now excited to commit this one hundred billion dollars
(16:22):
and one hundred thousand jobs into the United States. This
is double of last time, as President Trump said, because
I say, oh, President Trump is a double down present,
I'm gonna have to double down, you know, one hundred
billion dollars and one hundred thousand jobs. This is you know,
(16:43):
my confidence level because that has doubled down. So I
am truly excited to make this happen. And of course
business is important, technology is important. But one more thing
I'm really hoping is that this President Trump would make
(17:07):
the world, bring the world into peace again. That's my
additional hope and and I think he will actually make
it happen. So anyway, I'm excited to go. And we
(17:28):
were discussing and President Trump said, Marsa, you know, double doll.
Speaker 2 (17:33):
Is not enough. Maybe you know, go for more. Right,
That's what.
Speaker 8 (17:37):
I'm going to ask him right now. Would you make
it two hundred million dollars he can, would you do that?
Speaker 2 (17:50):
Well, my promise is hungry. But you know he's now
asking to do more.
Speaker 9 (17:57):
I think you know with your leadership, my pop messive
is you is your support.
Speaker 2 (18:04):
I will, I will try to make it happen. That's good.
Five two hundred kill make it two hundred. Sh He
is a great nego say that he's a brilliant guy
and an unbelievable job.
Speaker 8 (18:21):
And the people of Japan and all over the world
are very proud of and a uh tremendous respect for
himself what he does, what he just did, and and
I would be surprised if if what didn't go to
do And when you say you'll try, uh.
Speaker 2 (18:35):
I know you'll do it. I will. I will really
try it.
Speaker 9 (18:37):
Yeah, And and I need your support though you'll have
my support alright, we have our country support all fantastic,
Thank you, my sport, fantastic, thank you, thank you.
Speaker 2 (18:47):
Where are saying legend the people of Japan who were all.
Speaker 9 (18:49):
Watching, well, uh, I'm sure uh our people in Japan
uh proud to uh make the pop muss of US
and Japan be stronger. And I'm very excited to make
this happen.
Speaker 2 (19:05):
Thank you very much. Thank you, thank you, thank you,
thank you. That's a good job.
Speaker 10 (19:13):
Thank you.
Speaker 2 (19:15):
It's amazing.
Speaker 8 (19:16):
It's a great gentleman at a great leader and a
great investor.
Speaker 2 (19:22):
So to have that offerm it.
Speaker 8 (19:24):
And we have so many companies coming in now where
that will be announcing or they will announce themselves. We'll
not have to be with them to do it, but
they'll be announcing. And as I said, small business optimism
took a forty one points jump forty one points.
Speaker 2 (19:38):
It went up forty one points.
Speaker 8 (19:39):
That's unheard of, and that's the biggest they think in
recorded history.
Speaker 2 (19:44):
But they know at least a minimum of thirty nine years.
So that's great.
Speaker 8 (19:47):
But on behalf of the American people, I want to
thank Massa for his faith and what's happening with our
country and what's happening with the world. There's a whole
light over the entire world. Many people, some reporters, and
speaking to them, they said, you know, it actually is true.
A couple of them are not necessarily friends of mine,
but they said, it is actually true that there's a
(20:08):
light shining over the world. We're trying to help very
strongly and getting the hostages back as you know, with
Israel and the Middle East, we're working very much on that.
We're trying to get the war, stop that horrible, horrible
war that's going on in Ukraine with Russia. Ukraine. We're
going to We've got a little progress. It's a tough one.
Speaker 2 (20:29):
It's a nasty one. It's nasty.
Speaker 8 (20:32):
People are being killed at levels that nobody's ever seen,
you know. It's very level fields and the only thing
that stops a bullet is.
Speaker 2 (20:40):
A body, a human body, and the number of.
Speaker 8 (20:43):
Soldiers that are being killed on both sides is astronomical.
I've never seen anything like it, and rapidly I get
reports every week and it's not even you know, it's
like just going down. Nobody's seen anything like it. It's
a very flat surface, a very flat land. That's why
it's great farming land. It's the it's the bread basket
(21:04):
for the world actually, but it's very flat and there's
nothing to stop a bullet but a body. There's no protection,
no nothing, and it's what's happening there is far worse
than people are reporting for both sides. So we're going
to do our best that we've been doing our best,
and we'll see what happens. But since the election, I've
been working every day to put the world at ease
(21:27):
a little bit, to get rid of the wars. We
had no wars when I left office, and now the whole.
Speaker 2 (21:32):
World is blowing up.
Speaker 8 (21:34):
But there's great optimism, and you saw that by soft bank.
Speaker 2 (21:38):
Starting on day one, we'll implement.
Speaker 8 (21:41):
The rapid series of bold reforms to restore our nation
to fold prosperity. We're going to go full prosperity and
to build the greatest economy the world has ever seen,
just as we had just a short time ago. We
had it in my turn, with the greatest economy that
the world had seen.
Speaker 2 (21:59):
We were blue owing away everybody.
Speaker 8 (22:01):
Our country was doubling up on China, doubling up on everybody,
and everybody knows it. And then we had to slow
it down with COVID, unfortunately at the end. But even
then I gave it back with a substantial increase of
the stock market.
Speaker 2 (22:16):
Bigger than it was pre COVID, So it was pretty amazing.
Speaker 8 (22:19):
Already, preparations are underway to slash massive numbers of job
killing regulationsing eliminating ten old regulations for every new one.
You put a new regulation on.
Speaker 2 (22:30):
You have to get rid of ten and we'll be
able to do it. And that was about the percentage
we had.
Speaker 8 (22:35):
We cut more regulations than any president has ever cut
by far, actually by approximately five times. Some of those regulations, unfortunately,
were put back on.
Speaker 2 (22:47):
But we'll catch up very quickly. We'll catch up with it.
Speaker 8 (22:52):
One of the things I'd like to ask the Biden administration,
as you probably heard, there are two events that took place.
Speaker 2 (22:58):
We're talking about.
Speaker 8 (23:00):
A friendly takeover, a friendly transition, as they like to say,
this is a friendly transition, and it is, but there
are two events.
Speaker 2 (23:09):
That took place that I think are very terrible.
Speaker 8 (23:12):
One is that if people don't come back to work,
come back into the office, they're going to be dismissed.
And somebody in the Biden administration gave a five year
waiver of that so that for five years people don't
have to come back into the office. It involved forty
nine thousand people for five years, they don't.
Speaker 2 (23:29):
Have to go. They just signed this thing. It's ridiculous.
Speaker 8 (23:32):
So it was like a gift to a union and
we're going to obviously be in court to stop. And
the other thing is really terrible. We spent a tremendous
amount of money in building the wall.
Speaker 2 (23:44):
The wall was.
Speaker 8 (23:44):
Designed specifically by the Border Patrol because it's very hard
to climb. They need to have see through They needed
to be steeled because you can't get it's very powerful steel.
It's very hard steal. It's a special type of steel,
but very very hard to cut. Inside the steel. As
you know, we pour concrete and that's a Grade ten concrete,
(24:06):
which is a very strong concrete, very as though you
were building about a sixty story building.
Speaker 2 (24:12):
It's very powerful concrete.
Speaker 8 (24:14):
They've made tremendous technology advances in the word concrete. Who
would think that, but I know that from the construction
industry today. What you can do with concrete is incredible.
So we have a very strong concrete and then we
have a rebar. We put rebar inside the concrete and
the rebar, likewise, is very hard to cut. So it's
(24:34):
a very expensive process, very expensive wall. And then we
put a anti climb plate on the top. You saw
that and I didn't like the look of it, But
then when I watched we had people testing, We had
mountain climbers actually testing, and they were not able to
get over the anti climb plate.
Speaker 2 (24:51):
So I said, all right, I guess we're going to
put it on that.
Speaker 8 (24:54):
Plate on top, which I never loved the look of it,
but it works so unbelievable.
Speaker 2 (25:00):
Well, you have to do it.
Speaker 8 (25:01):
So we spent a lot of money in building it,
and we have hundreds of miles that we put up.
A lot of people don't realize, but we did five
hundred and seventy one miles of wall. That's why we
had such good records, in addition to the fact that
Mexico helped us with their military. They kept people out
and they were actually very good under the past leader.
But now had we ordered an additional two hundred miles
(25:25):
of wall, it's very expensive, and now it's about double
the price of what it would have been six years ago,
and the administration is trying to sell it for five
cents on the dollar, knowing that we're getting ready to
put it up, and what they're doing is really an act.
It's almost it's almost a criminal act. They know we're
(25:46):
going to use it, and if we don't have it,
we're going to have to rebuild it, and it'll cost
double what it costs years ago, and that's hundreds of
millions of dollars because you're talking about a lot of wall. Well,
I built much more than I said I was going
to build. But then after it was built, I said,
you know, we can do some more because it's sort
(26:08):
of like water people flow through and that will pretty
much really take care of it. And what happened is
they just as you see, they're trying to sell it
for five cents of the dollar. And that's really that
has nothing to do with a smooth transition. That has
to do with people really trying to stop our nation.
(26:29):
And all it means really is that we're going to
spend hundreds of millions of dollars more, not even talking
about the time. Time would be pretty long, but we'll
spend hundreds of millions of dollars more on.
Speaker 2 (26:44):
Building the same wall that we already have.
Speaker 8 (26:46):
And people have already come back to us that have
deals at five cents and four cents, and one guy
at three cents on the dollar, and they offered to
sell it back to us at more money then it
costs us to build substantially, can you believe it. So
they make a deal with the United States to buy
it for pennies and then they call us, and they say,
(27:08):
do you want to buy it back? We'll sell it
back to you for hundreds of dollars a foot, hundreds
of dollars from pennies to hundreds of dollars a foot.
Speaker 2 (27:19):
And we can't let this take place. Now, we're going
to go.
Speaker 8 (27:22):
I spoke with the Attorney General of Texas. I spoke
to the Senators of Texas. I spoke to a lot
of people, and hopefully they'll be able to stop. We're
going to be having a restraining order. But just think
about how ridiculous it is. And this is just people
that don't want this country to succeed. And this has
nothing to do with Democrat or Republican. This has to
(27:42):
do with common sense. We won on common sense, and
this is maybe one of the most egregious examples I've seen.
So the people that are buying it, are trying to
buy it, are trying to make a deal with us
to sell it back at hundreds of times more, hundreds
of times more then we paid. And this is all
(28:03):
because the deb So I'm asking today Joe Biden to
please stop selling the world.
Speaker 2 (28:09):
We're going to use that.
Speaker 8 (28:10):
To create a strong barrier.
Speaker 2 (28:14):
And it worked.
Speaker 8 (28:15):
That's why our numbers were so good. It really worked,
and it worked well, and it's very expensive to do,
and I'm asking Joe Biden to stop his people from
giving it away. It's something that people can't even believe
is happening. So hopefully Joe will be able to stop it.
We'll soon unleash American energy and this will be done
(28:38):
at the levels not seen before, issuing quick approvals for pipelines,
drilling another infrastructure. It'll be clean energy, and we'll bring
in the price of electricity and we're going to bring
it down fast. We're also going to create clean coal.
Clean coal is something that has really taken over. We
have coal that will last for over a thousand years.
(29:00):
We have so much call, and with a process, it
becomes clean call. It's very powerful energy. Unlike wind. It's
very very powerful. And we're going to be doing a
lot of clean call for the people of West Virginia
and others, Wyoming, so many states. We have great states,
and they'll be happy to hear it. But we're going
(29:20):
to be very much into clean call. I don't ever
use the word call. I use the word clean call.
And I'll keep my promise to pass historic tax cuts
for American families, workers, and businesses that create jobs in America.
As you know, we're giving tax cuts if they do it.
Speaker 2 (29:38):
Here.
Speaker 8 (29:38):
We brought it down from forty four percent forty two percent.
In some cases it was thirty nine. We brought it
all the way down to twenty one percent, and now
we're bringing it down to fifteen but only if they
make their product, their car or whatever they're doing in
the United States in the US and people are thrilled.
I've had the smartest people on Walston called me. They said,
(29:59):
when do you get that idea? And it doesn't seem
that complicated, right, but it's nobody else.
Speaker 2 (30:04):
It's like the paper clip. Nobody ever thought of it.
One guy thought of it.
Speaker 8 (30:08):
Everybody looked at it, and they said, Wow, that was
a good idea.
Speaker 2 (30:12):
Why didn't I think of it?
Speaker 8 (30:14):
But we're bringing it down six more points and that
will put us really at the UH the best level
we've ever had for bringing in business. We've never been
down to. That level will be among the lowest tax states,
and a lot of businesses are going to come in
Between that and our taxing and tariff policies, We're going
(30:34):
to have business like nobody's ever seen in this country before.
That's why we're, you know, having a forty one year
record in optimism from small businesses and big businesses.
Speaker 2 (30:44):
And I'll keep my.
Speaker 8 (30:45):
Promise to pass historic tax cuts for families, workers, and
businesses that create jobs in America. Any business that invests
one billion dollars or more in the United States will
be eligible for fully expedited permits and approvals, including environmental approvals,
from the federal government. So when companies come in, if
they're going to invest a billion dollars and more, there'll
(31:07):
be many of them, and they'll go into Detroit, and
they're going to a lot of places where we want them.
You saw how well I did with the auto workers.
We did unbelievably well. You saw how well we did
with the teamsters, and also the non union were record
ninety eight percent, ninety seven percent. Nobody's ever got numbers
like that. Because we're bringing business back and they're all
(31:28):
coming back. We lost them over years of stupidity. I
call it the years of stupidity, the decades of stupidity.
Through the Department of Government Efficiency, Elon Musk has been
working very hard with various people including Vivek will go
to eliminate hundreds of billions of dollars of wasting fraud,
(31:50):
and I can only tell you, I'll give you a
little early report. They're finding things that you wouldn't even believe.
So we're looking to say, maybe two trillion dollars will
have no impact.
Speaker 2 (32:01):
Actually it'll make life better, but it'll have no impact
on people.
Speaker 8 (32:04):
It's not like we're we will never cut social security
things like that. It's just waste, fraud and abuse. And
we'll immediately restore the sovereign borders of the United States
and stop illegal immigration, which is costing US I believe
trillions of dollars a year. I think it's a cost
that nobody's ever seen anything like it. I don't know
(32:25):
how can you be satisfied releasing prisoners into the Uniteds.
To think of this, you're releasing prisoners from jails all
over the world, not just in South America, from the Congo.
Speaker 2 (32:37):
I would talk about it all the time.
Speaker 8 (32:38):
They're a very big sender of people, but from all
over the world. They're sending prisoners out of their jails.
Some of their jails are empty, and they will be
empty soon. If this ever continued, I spoke with a
president of Mexico, and as you know, I spoke with
Justin Trudeau of Canada, and we told them, not fair,
(33:00):
not right. Can't let these people come into our country.
And they understand they're very much unnoticed and they're going
to have to stop this from happening. They're going to
have to stop it. We lose a lot of money
to Mexico, We lose a lot of money to Canada,
tremendous money. We're subsidizing Canada with subsidizing Mexico.
Speaker 2 (33:18):
That can't go wrong.
Speaker 8 (33:19):
Then I get along with the people of Mexico and
Canada very well, but we can't let that happen. Why
are we supporting and giving other countries hundreds of billions
of dollars. It's not fair, it's not right, and the
people of Mexico and Canada fully understand that. We've talked
about it before, but now we're doing something about it.
(33:40):
We started and then we had to fix the COVID situation,
and that's what we did. But now we're doing it.
We're doing it from the beginning. Howard will be largely
in charge. We'll be working on her together. Howard's terrific
he's done a fantastic job, and he's now we leave.
Speaker 3 (33:56):
President elect Donald Trump was discussing.
Speaker 4 (33:59):
How Lonk, of course, and he's been discussing tax cuts
being promised, also asking on the current president Biden to.
Speaker 3 (34:08):
Stop selling the border wall parts.
Speaker 4 (34:10):
Is seeking a restraining order for border wall parts sales,
he says, criticizing basically the administration's.
Speaker 3 (34:16):
Selling of border war parts. He says, they're going to be.
Speaker 4 (34:19):
Fighting as well what they call federal workers return to
office waiver, and there's work underway to slash regulation more broadly.
He named checks FIVEK and of course Elon Musk there
and they made some progress as well in stopping the
war in Ukraine.
Speaker 3 (34:33):
You want to go back to.
Speaker 4 (34:34):
Also, though, the business being announced by, of course, the
CEO of SoftBank, Massioshi's son. He's the founder who's coming
on to talk about the one hundred billion dollars that's
going to be invested by soft Bank into the United
States over the next four years, the one hundred thousand
jobs made, and in fact, he was saying he's going
to try and make it even bigger two hundred thousand potentially.
(34:54):
Let's get to Mike Shephard and just let's focus first
on the tech side of all of this, because.
Speaker 3 (35:00):
It's deja vous.
Speaker 4 (35:01):
We saw half the amount promised, and they are said
to have been delivered by Massa back in twenty sixteen.
Speaker 1 (35:10):
This is an echo of what we saw eight years ago,
almost to the day, when Masa Isshu saw him made
this promise at Trump Tower of a fifty billion dollar
investment with fifty thousand jobs. And as Peter our colleague
discussed earlier in the program, he largely made good on that.
Trump is putting him on the spot today a little
(35:31):
bit already inking this one hundred billion dollar promise one
hundred thousand jobs and trying to get him to double
even that. And we heard Peter talk about how Masa
issue Saw may not have all that much in the
tank to be able to pull it off. But at
the same time we heard Son talk about how he
(35:52):
has such confidence in the incoming administration that maybe this
will be a way to help him gain some of
those investments and gain that capital needs.
Speaker 4 (36:02):
And the support of the next administration. The support of
Donald Trump as president shouldn't come as a surprise, Mike.
Speaker 2 (36:10):
No, not at all.
Speaker 1 (36:10):
And what was interesting also is how the president After
Somem left the stage, he talked about his commitment to
trying to I guess, revive and reinvigorate the economy from
the business perspective, not only by cutting corporate tax rates,
but by trying to cut red tape. And just last
week we heard him make the pledge that he reiterated
(36:32):
today that anyone investing a billion dollars or more in
the US would get speedier permit review. And that has
been an issue that we've heard energy companies and even
tech companies bring up. The tech companies that are getting
into AI have such energy demands that they need for
their data centers, and without that kind of support to
speed those projects, they see their AI ambitions at risk
(36:55):
of being slowed.
Speaker 4 (36:56):
We can indeed see onto social web. Presidentelect Trump had
to discuss the one billion dollars or more that can
be allocated to the United States and therefore getting that
expedited approval and permitting. Mike, it is seemingly all about AI,
all about energy when it comes to Mass's investment. Last time,
it seemed to be a whole host of I mean
(37:18):
people talking to the hundreds of companies that Soft Bank
put money into it via the Vision Fund and indeed buys.
Speaker 3 (37:24):
Soft Bank directly.
Speaker 4 (37:25):
We already see this money being allocated to Open AI,
for example. Are we expecting a mixture of startups and
publicly traded companies? Is there anything discerning as to the
direction of travel of which companies are going to be backed?
Speaker 1 (37:38):
You know, it's really tough to say right now exactly
how this money would be applied if it refers back
to already planned investments by soft Bank in other ventures
and vehicles, we just don't have those details. And in
a way, just like Trump's truth social post on cutting
red tape and regulation, we really don't know exactly how
(37:59):
he intends to do that either. So we're going to
have to see how this unfolds. And there will be
more to come from masseoshusan how much of this money
gets deployed into the US, how quickly and toward whom?
And I think there are a lot of startups, including
people who have ties into the administration, who will be
very interested in that kind of a partnership.
Speaker 4 (38:19):
Mike Shepherd always a joy. Thank you for breaking it
all down. Meanwhile, coming up, we'll have plenty more on
the future of the media landscape as well as costs
of AI's power hungry features. More next this bloombag technology.
(38:43):
We are watching bloombag technology right now and we're bringing
you the latest out. Of course, Trump speaking in Mara
Lago at a press conference discussing the future of TikTok
at the moment, so keep a close eye. They said
they're going to be taking a look at TikTok. We
know at the moment that the TikTok it's elf did
not get the pause that had wanted to see on
the potential divestment or ban that is likely to come
(39:05):
intoffect on January the nineteenth, the day before Trump is inaugurated.
So taking a look at the social media platform TikTok
will bring you any more breaking news coming from that
press conference. But we want to check in on the
markets because we are currently on the risk on attitude.
We're up NASA one hundred almost a percentage point higher.
Chip Make is Broadcom leading us on the higher side
as well. We're seeing Bitcoin up some three four percent,
(39:26):
a new record high. Once again, is MicroStrategy going to
be inducted into the NASA one hundred More money therefore
going there from allocated funds and what does that mean
more money probably likely to be spent on bitcoin by
that particular name. Meanwhile, we want to go back to
what has been the story of the day, and it's
investment into the United States as well, coming from SoftBank.
Massa was just at that press conference in Marinaco, massasun
(39:48):
of course CEO of soft Bank committing is going to
try two hundred billion dollars, but he has committed to
one hundred billion dollars of investment in AI and energy
and infrastructure.
Speaker 3 (39:56):
That following on, of course, for the.
Speaker 4 (39:58):
Fifty billion dollars he promised back in twenty sixteen. ARM
holding is interestingly down on the news. We're off by
five percent. It happens to me having its day in court.
We understand being reported that ARM and Qualcom had their
first day in court. Of course ARM and qual Com
buying over the future of their relationship. But maybe some
hypotheticals as to what ARM would mean in terms of
the ninety percent holding that SoftBank has in it if
(40:19):
he's going to be raising more funds. Let's also discuss
what it means to the investment landscape more broadly here
in the United States at the moment from a VC perspective, Look,
there's plenty of news when we're thinking about American AI startups,
and we've got a perfect voice on the Excel partner.
Mark Whiteground is with us today's VC spotlight.
Speaker 3 (40:37):
Matt, you are.
Speaker 4 (40:38):
Someone who's just been allocating interestingly to a public company
is of course based in Europe, but thinking about AI infrastructure,
about access to the cloud. Nimbus is the name of
the company you're looking at, But you're also just thinking
of the turf warfare that's out there to allocate money
to generator AIAI.
Speaker 3 (40:53):
This is just going to add to the party.
Speaker 10 (40:55):
Right, Yeah, absolutely, Well, first, thanks for having me on.
But we had Excel our big believers that we're only
in the early innings of laying down the infrastructure that's
going to be required to actually support this massive technological
wave of AI. So this committed investment doesn't surprise me
at all to see it coming in because we do
need that infrastructure. So I'm excited to see more infrastructure
being laid down for AI.
Speaker 4 (41:15):
Okay, where are you seeing the biggest opportunities. You've just
made this allocation of funds into a publicly traded allocator
of cloud. We've got Core, We've already out there as
a big pivot from all these companies that we're looking
at bitcoin mining and now getting into the world at
cloud computing. But what next in terms of areas that
you think are fruitful?
Speaker 7 (41:34):
Yeah, absolutely so.
Speaker 10 (41:35):
At Excel we broadly invest across two different facets of AI.
We think about infrastructure, which ATBs is very much an
example of that, also investing in companies like Scale AI
in the infrastructure layer helping build the data engine for AI.
But then we can't forget about the applications that are
going to run on that infrastructure. So we see great
opportunities in both enterprise and consumer applications. Our most recent
(41:55):
investment in the consumer side of things was into a
company called Speak, supporting language learning for AI.
Speaker 4 (42:02):
So that is the tussle right at the moment. There
is an awful lot of money being allocated to building
picks and shovels infrastructure, and many feel the valuations potentially
have gone out of whack. There we now go into
the killer applications that many are still waiting on. Do
you think we're actually there and people aren't seeing the
application and generator of AI right now?
Speaker 3 (42:21):
The real productivity games.
Speaker 10 (42:23):
Absolutely, we see it from the ground up, and we
see companies that are gaining real traction and driving real
value both in enterprise and consumer. So, although it is
still the early innings and a lot of the emphasis
has been on that infrastructure the training to get us
to the point where we can actually run inference on
these models and get the value out of them, I
think you're going to start to see, particularly across twenty
twenty five and twenty twenty six, applications spring up both
(42:44):
in enterprise and consumer that drive real value.
Speaker 2 (42:47):
To the end user.
Speaker 4 (42:48):
But then when I think of enterprise, you've got salesforce
all in on agent force, Who've got Microsoft trying to
offerate so copilots. Where is the space or is it
actually the all of these startups will end up being
eaten up by these bigger enterprise companies.
Speaker 3 (43:02):
That's the EXO strategy.
Speaker 10 (43:03):
Yeah, it's a really good question. So speaking on the
infrastructure layer with Nebus, what we actually see is that
by pairing their four hundred software and hardware engineers against
the problem of standing up infrastructure, but doing it with
an AI specific approach, we're able to offer a level
of flexibility that the large incumbents offering generalized clouds just
don't have in the ecosystem today. So that means that
(43:25):
people can come to us that need large amounts of compute,
that want bare metal, and people can also come to
us that just want an on demand, flexible experience with
their infrastructure.
Speaker 3 (43:33):
So as always, you see.
Speaker 10 (43:35):
The innovation in their early startups tackling some of the
holes and open opportunities in the large incumbents, and I
expect to see the same thing. Salesforce obviously defending its territory,
but we see a ton of activity and agentic approaches
and apps going after their exact market, so we'll continue
to see.
Speaker 4 (43:50):
It is a gentaki going to be the next sort
of over allocated area.
Speaker 3 (43:56):
I mean, we've all got way too.
Speaker 4 (43:58):
In the weeds when it came to chip and semi
conductors for twenty twenty four. When it comes to twenty
twenty five, we're all going to be parlaying and ergentic AI.
Speaker 10 (44:05):
I don't think it's over hyped at all. I think
in the reality is we're still in the early innings
and the expectations are quite high on what agents are
going to do within the enterprise. Application arena, and so
it's easy to point at the flaws and agents today,
but I tend to look at the progress of agents,
and as an investor, I look at where value is
going to be created over the next decade.
Speaker 3 (44:23):
And over the next.
Speaker 10 (44:24):
Decade, I think you're going to see really mature agents
hit the market and scale in a meaningful way.
Speaker 4 (44:28):
Come when they're ready and fit for purpose and can
talk to us a little bit more. Accel partner Matt
Wagan fascinating across the infrastructure and now of course the
application layer too. Let's just move to public markets for
a moment, because the Nastik debut for tech startup service Titan,
bringing big windfalls for early investors, includes more than one
million dollars going to Iconic Growth for example, over eight
(44:50):
hundred million going to best in my mention partners.
Speaker 3 (44:52):
This is all according to sources, and they told Katie Roof.
Speaker 4 (44:56):
Katie bring us the breakdown on who the big winners
were on this a well, it was culse enlisting that
popped so much that many would say that some money
was left on the table.
Speaker 11 (45:06):
Sure, absolutely, so there's a few things to get at here.
But so a service Titan, you know, they're an LA
based software provider for like the plumbing industry, other home
service providers. They've been around for a while, and so
even though you know, they were valued pretty highly in
some recent rounds, like you know, almost ten billion dollars
(45:29):
because Iconic and Bessemer and Battery Ventures bought so many
shares when it was such a young startup at a
small price that you know, Iconic stands to gain over
a billion dollars from this investment. I've confirmed Bessemers stands
to gain over eight hundred million dollars because even though
they have about nine hundred million dollars worth of shares,
(45:51):
it cost roughly maybe sixty million to acquire those shares.
Speaker 3 (45:54):
For Bessemer.
Speaker 4 (45:56):
Kh ruth all things on some of the allocations and
those that are reaping the rewards when it comes to
the latest IPOs, we really appreciate it.
Speaker 3 (46:04):
Thank you coming out from LA.
Speaker 4 (46:05):
I mean, while coming up AI's energy demand shock more
on how businesses are preparing for a future that requires
more resources as of.
Speaker 3 (46:12):
Blue meg technology.
Speaker 4 (46:25):
The AI boom has caused one unintended consequence. Businesses, investors
in society are now bracing for an energy demand shock
that comes with utilizing the resource intensive features bluem excellent
dwe joins US now for is a real deep dive
into the implications of artificial intelligence, one that perhaps one
MASSIVEUSI soun is looking to help finance some of the
issues in these issues.
Speaker 12 (46:45):
Yeah, what a coincidental timing for US to have just
put out this piece on the massive infrastructure demands of AI,
and not just energy, right, we were talking about the
demand on metals and mining, on land and real estate,
on human beings, on data, on data centers, on steel, copper, gold, aluminum,
(47:06):
and so if you put all of those together like
we did in that massive AI supply chain piece that
we did on Friday, you can understand and it's almost
not surprising for someone like Massa to say, yeah, we'll
drop one hundred million dollars in the US because they're
going to need it. The whole industry is the whole
industry is going to be a lot more than one
hundred billion dollars. So one might argue that these plans
have already been quite in the making.
Speaker 3 (47:28):
To that point.
Speaker 4 (47:29):
We've reported long and hard about Sam Altman trying to
gather sort of a table of international investors wanting to
bring on Yeah, coalition exactly, but how much are they
looking on this being built in the United States?
Speaker 3 (47:41):
So how geopolitically expose can you still be? You know,
that's a really good question.
Speaker 12 (47:46):
And I think that there is a narrative that is
playing out in the tech community right now that acknowledges
no specific country has all of the resources that are
necessary to build and dominate AI as a hub, and
so we will have to look for allies, We will
have to look for coalitions among like minded countries. That
(48:08):
is what the tech community and executives like open ai
and Nvidia are telling the administration in DC that it's
time to be thinking about how we can pull our
resources to own this technology but also control it in
the proper ways.
Speaker 3 (48:21):
Do you think your story is shocked anyone?
Speaker 12 (48:23):
Which, sorry, oh, I would hope So, I mean, I
would hope that it's a wake up call that I think.
If there is one message that I'd like to send
out of that AI supply chain data visualization, it is
that for all the talk of AI making the world
more efficient, quicker, less human resources intensive, it is actually
(48:43):
an incredibly resource intensive, inefficient technology.
Speaker 4 (48:47):
For now, at least Injuan. It's a great story, go
read it. Meanwhile, that does it for this edition of
New bag Technology you do not want to.
Speaker 3 (48:54):
Forget on podcast.
Speaker 4 (48:55):
You'll find out on the terminal, as well as online
on Apple, Spotify, and iHeart.
Speaker 3 (49:00):
This is brumbag Technology
From the heart where innovation, money and power Collie in Silicon.
Speaker 2 (00:05):
Valley, NBN. This is Bloomberg Technology with Caroline Hyde and
Ed Ludlow.
Speaker 3 (00:25):
Live from New York. This is Bloomberg Technology coming up.
Speaker 4 (00:27):
Soft Bank CEO Masiyoshi's son set to announce plans to
invest one hundred billion dollars in the US during a
visit with President elect Donald Trump. We're bringing the news
plus Bitcoin rises to a record high. I'm in microstrategies
inclusion in the Nasdaq, and Apple's got plans for a
new foldable iPad and aims to bring it to market
by twenty twenty eight.
Speaker 3 (00:48):
A first we.
Speaker 4 (00:49):
Check in on these markets which have a risk on
attitude to the day, as we anticipate key Fed decision
come Wednesday. Ahead of that, and as that one hundred
a new record high. We're up nine tenths of there,
and chip maker is managing to drive higher Micron broadcon.
But also we're seeing Bitcoin up three point four percent.
We are once again escalating to new levels. We dig
into the reasons why, but of course trumping one of
(01:11):
them the focus on the new administration, but also micro
strategy like to be added to the Nasdaq. And what
that means for its own purchases of bitcoin. We're up
at one hundred and six thousand dollars per token. But
the big breaking news of the day when it comes
to technology is, of course, according to the people familiar
that SoftBank CEO mas Yoshi Son is set to announce
plans to invest a whopping one hundred billion dollars in
(01:33):
the United States over the next four years. It's all
according to sources, as we say, and this is as
he's planning to be meeting with President elect Trump today
and mar Lago. We're expecting Donald Trump to speak in
a few moments. Time for more, let's bring in Bloomberg's
Peter Elstrom and for while. Back in twenty sixteen, we
saw big promises made by Massa and this time he's
(01:53):
doubling them.
Speaker 5 (01:55):
Yeah, you'd be forgiven if you thought this was deja vus.
It was eight years ago, in fact, eight years ago
December when masiosche Son went and met with Trump and
he talked about investing fifty billion dollars. Now he's doubling
that pledge. It's one hundred billion dollars that he's planning
to invest. According to our sources, and also he's planning
on creating and estimated one hundred thousand jobs in the
(02:16):
United States. So this is the first major investment that
we've seen after Trump's win. It's certainly a pledge towards
what Trump has been trying to do in terms of
reinvigorating the economy. For SoftBank, it's also a pretty big
push into the United States. Last time when they pledged
fifty billion dollars, MASA had just raised this vision fund.
He had plenty of capital. He put investments into companies
(02:37):
like we work in Door Dash and plenty of others.
But right now he doesn't have that kind of cash anymore.
He only has about twenty five billion dollars in cash
on the balance sheet, and yet he's doubling that pledge.
Speaker 3 (02:47):
So we had some work to do here, had some work.
Speaker 4 (02:49):
We're also wanting to know the finer details of where
exactly he allocates. He's been all in on AI saw
this curve coming before many others, of course as evidence
his arm holding's acquisition and then taking that to market.
But where else do you think he'll be investing in
the United States?
Speaker 5 (03:08):
Yeah, well, more recently, including at SoftBank World this summer
He's talked a lot about artificial intelligence and how he
wants to invest even more and more kinds of companies.
So he is putting money into open Ai, in particular
to Pioneer of course behind chat GPT. He's put in
five hundred million so far, and he's right in the
process of a tender offer now where he's offering open
Ai investors the ability to sell him their share so
(03:31):
he can get another one point five billion dollars. But
his ambitions go far beyond that. He's talked about the
need to have more alternatives to in vidio chips in particular.
He knows that energy is a huge issue for AI
right now, so he wants to make investments there. He's
also been investing quite a bit in autonomous driving, so
he's a lot of ambitions. He always has a long
list of deals and investments that he wants to make,
(03:52):
so we're going to see where exactly he puts that money.
But it is a lot of money right now, and
again he doesn't have that cash on his balance sheet.
Speaker 3 (03:58):
He has to be able to go out and get
that close.
Speaker 4 (04:01):
Peter, that's from we thank you so much, bringing us
up to speed on the anticipated announcement. Now, let's keep
discussing trends in tech markets more broadly, what this influx
of money into AI really means for the US at
least densisms with US directoral quantitative market strategy. Over at Fidelity,
we love having you on because of the historical context
you can put today's investment advice. But I mean we
(04:21):
look at what's happening in the market. When you're thinking
of a juggernaut of one hundred billion dollars coming into
USAI and energy, where it feels.
Speaker 3 (04:28):
Like a lot of money has already gone that direction.
Speaker 6 (04:30):
Yeah, Well, when you readbase it relative to sales or
relative to market cap, I mean you haven't really seen
that much of a move.
Speaker 3 (04:36):
I think we talk about this all the time with.
Speaker 6 (04:38):
Money funds on sitting on the sidelines, how much cash
is on the sidelines, or how much cash in terms
of nominal capacs.
Speaker 1 (04:43):
But when you actually.
Speaker 6 (04:44):
Renormalize it, given the move that we've seen in the
marketplace over the last five years, it's a much lower
percentage than you would think. Interestingly enough, specifically for tech stocks,
and I would say more specifically for software stocks, cap
BAX is very much an alpha fact, meaning that that
spending is usually a good thing for stocks because it's
(05:05):
very correlated to earnings growth.
Speaker 4 (05:07):
Okay, so I'm not going to ask you is to
opine as to where exactly a Masayoshi Son is going
to be putting his investment. But if you're looking at
an every day, whether it's retail or it's chootion investor
right now allocating to opportunities, do you have to be
put off by some of the valuations right now or
actually do you keep chasing the momentum, keep chasing the
names that have.
Speaker 3 (05:26):
Done well well.
Speaker 6 (05:27):
It's interesting. So technology has had a little bit of
underperformance over the course of the last six months, and
because earnings growth and free cashulow has been so strong,
you're actually out of anomalist valuation situation. So I define
anomalist valuation as top quartile. So we have fallen out
of top quartile levels, which is where you see the
risk reward become fairly negative for tech. Now as we
(05:49):
enter twenty twenty five, coming out of that top quartile
valuation zone, I actually think it sets up for a
pretty positive risk reward. And for all the talk about
momentum stocks on our day, when you look at it
specifically within technology, I'm not seeing any anomalous behavior, meaning
I'm not seeing top quartile road to performance over the
last year, and I'm not seeing top quartile valuation on
(06:11):
that top quartile of momentum, meaning that because earnings in
free cash flow are so strong, there's no valuation situation
where you're saying you're overpaying on a consistent basis for
technology stocks that have been leaders in the S and
P five hundred Wow.
Speaker 4 (06:27):
So it still feels like there's basically opportunities in the
mag seven.
Speaker 3 (06:31):
What about the next tay down?
Speaker 4 (06:32):
We started to see software names really come to the
rise as people started to reallocate perhaps from the semiconductor
trade out to the Kila applications being born out.
Speaker 3 (06:41):
Is that something that you'd like to see moral No, that's.
Speaker 6 (06:44):
A great question and a great point because of the
three big areas within technology, if you say hardware, software,
or semis, where are the opportunities. It looks very interesting
on the data and software to me, given the strength
and free cash flow and earnings valuations, we're actually in
the bottom half of the distribution a valuation perspective when
you look at all the data back to nineteen sixty two.
And what you see is that very much empirically skews
(07:06):
your risk rewards on odds for the software sector specifically,
so when you have strong growth and valuation support, it's
a very positive risk reward for the sector. Of those three,
hardware software and Semis software is the only one of
those three industries that looks like that. So I think
as we enter twenty twenty five, that's where it looks
like the opportunities are to me.
Speaker 3 (07:28):
And in the US todays, yes, in the US.
Speaker 4 (07:32):
What of the US exceptionalism on this trade that we
all keep talking about, I mean, is it going to
dominate for twenty twenty five?
Speaker 3 (07:39):
It looked to me it does look like that.
Speaker 6 (07:41):
So everything outside the US, whether you want to talk
about EFA EM or AQUI X THEUS, what you find
is that valuation screen looks like a quantitative value trapped
to me, meaning that when you've bought in that bottom
quartile relative valuation on earnings are free cash flow, you
only have thirty percent odds about perform. It's like thirty
percent is not zero. But at the same time, it's
(08:03):
hard to say that that valuation is a critical driver
and the reason why it's not a driver is because
often international stocks are cheap for a reason. Even on
a sector neutral basis, taking out technology medium stock to
median stock, the S and P five hundred outgrows their
international peers by about three to four hundred basis points
a year on earnings, and it's growing every cycle. So
(08:26):
unless you think something is going to change, that hasn't
been the case over the last fifteen years. I think
the risk reward is still more favorable.
Speaker 3 (08:33):
In the US. This is why your historical context so important. Dennis.
I go therefore to the macro picture.
Speaker 4 (08:40):
We are, of course seeing the micro news on an
investment coming from Massa, but we're also seeing the macro
news of we're waiting on rates to go down. What
does that mean for that cash on the sidelines that
still perhaps is waiting to enter.
Speaker 6 (08:51):
Yeah, so rates, let's talk about rates being an alpha
factor for the market. I think people get a little
confused in terms of thinking about whether or not the
playbook is a good thing or a bad thing, saying
rates are not the critical driver. Earnings growth is the
critical driver. So when you look at the FED from
a playbook perspective, sometimes the fed's cutting because they have to.
That's not good for the market. Sometimes the Fed's cutting
(09:12):
because they can. And what you see from a quantitative
differential from those like trying to divide those two is
your starting point on earnings growth matters a lot. Our
starting point of positive earnings growth usually predicts a more
bullish situation for.
Speaker 3 (09:26):
The s and P.
Speaker 6 (09:26):
Five hundred. You're starting level of the Federal Reserve matters
a lot as well, because that's essentially a mathematical definition
of the FED put meaning if the FED is high
relative to inflation, they can do something to the extent
that the economy is hit with a shock. That's a
good thing. That's our situation as we enter twenty twenty four.
And most importantly, the FED can definitively change willingness to
(09:49):
lend of banks because that's been in contractionary territory and
because that's likely improving earnings growth is likely to broaden
out in twenty twenty five, include those small businesses and lagging,
and that skews your risk reward being pretty positive as
we under twenty twenty five.
Speaker 4 (10:04):
But then, how risk hungry did the edges of the
market become. I mean, we look at a day where
micro strategy, which has basically been a leverage bet on
bitcoin hugely outperformed Bitcoin in and of itself, is not
going to be added to the NASDAC. I mean, are
we going to see more money flow to those sorts
of risky ridges.
Speaker 6 (10:22):
Now that's a great question. So I mean, without the
talking about the idiosyncratic names. When I look at quality,
which is sort of the opposite of the factor that
you're talking about, it's been a darling of a factor,
much like Lovall was only underperforming I think three in
the last twenty years. Well, that's left quality stocks fairly expensive.
And that doesn't necessarily mean those high quality stocks need
(10:44):
to underperform by a lot, but to the extent relative
earnings or those relative returns start to inflect lower, that
usually does lead to underperformance in the factor. So for
anybody with a quality bias, I think about scrubbing your
portfoli oh yea and thinking about better risk rewards in
what have been historically risky your names.
Speaker 3 (11:07):
Tenny's unbeatable, thanks for coming on. Tiny's s tism Happy.
Speaker 4 (11:11):
Holiday's director of quantitive market strategy at Fidelity. Coming up,
we're going to focus a bit more on Bitcoin and MicroStrategy.
Speaker 3 (11:18):
Of course, crypto bitcoin himself.
Speaker 4 (11:20):
And a new record high throughout the weekend and now
longest weekly winning runs is twenty twenty one.
Speaker 3 (11:25):
Will dig in.
Speaker 4 (11:26):
Also, we're going to be focusing on later in the
show a bit more about Vivendi.
Speaker 3 (11:29):
But look at it.
Speaker 4 (11:30):
It's currently don't look at Vivendi stock today because it's
currently distributing itself up and is breaking itself into three
different companies. But what I want you to focus on
is what CBC is up to at the moment, exploring
a potential purchase of a Vendi's Telecom Italia stake. This
is as we know that Vincenbalaure, the billionaire in charge
of Vivendi, is trying to make his assets work for him.
(11:50):
This is broomeg Technology and we are expecting President elect
Trump to speak live from our alago in a few
(12:11):
moments time. All eyes on that reported one hundred billion
dollar investment coming from Masayoshi's son into the United States
and one hundred thousand jobs to be created too.
Speaker 3 (12:20):
We'll bring you that as and when.
Speaker 4 (12:21):
It occurs, but for now, let's just focus on another
area that Trump has helped rally, and that is Bitcoin
rising to a record high, large part because of the
next administration supported digital assets, but also there's this optimism
about the upcoming inclusion of micro Strategy in the NAZAK
one hundred and what that means for future purposes and
purchases Isabelle Lee is here with more and mstr gets
(12:43):
into and as that one hundred, it means technically that
more funds will have to allocate to it.
Speaker 3 (12:47):
Right, It really is a big deal. It's really it.
Speaker 7 (12:50):
Represents kind of like this institutional acceptance of bitcoin, which
is interesting because micro Strategy, and it's called founder Michael
Salor has long been ridiculed by Wall Street a specialist
since they started just in bitcoin in twenty twenty and
today again for the six straight Monday, they bought one
point five billion worth. Their total cache is forty five billion.
But it's really that the stock has rallied five hundred percent.
(13:11):
But you're right around four hundred fifty one billion dollars
worth of ets track the NASTAC one hundred, so they
will all have to rebalance, ISABALLEI.
Speaker 3 (13:19):
We thank you.
Speaker 4 (13:20):
We'll have to cut it short there because we do
understand that President ect Donald Trump is now starting his
press conference in mar Logo.
Speaker 3 (13:26):
We're listening.
Speaker 8 (13:27):
We'll discuss a couple of points. We'll take some questions
later if you'd like. I'm sure you might have one
or two. I'd be shocked if you didn't, I'd be
very impressed. But I'm honored to welcome one of the
most accomplished business leaders of our time, the founder and
CEO of soft Bank. Everybody knows Masa Yoshi San. Masa
(13:48):
runs one of the largest companies in Japan and among
the most successful investment and technology companies anywhere in the world,
one of the most successful investors in the world. And
we've just included a very productive meeting, and today I'm
thrilled to announce that SoftBank will be investing one hundred
(14:08):
billion dollars in America, creating one hundred thousand American jobs
at a minimum. And he's doing this because he feels
very optimistic about our country since the election, and many
other people are also coming in with tremendous amounts of money.
Speaker 2 (14:25):
You probably noticed that the poll was just taken.
Speaker 8 (14:29):
Its business is literally in thirty nine years, has been
nothing like it. It's been the biggest increased small business
owners gave it a forty one percent jump.
Speaker 2 (14:40):
It's the biggest jump that we've.
Speaker 8 (14:42):
Had in thirty nine years, and nobody's ever seen anything
like it, and it's just they're very optimistic. This historic
investment is a monumental demonstration and confidence in America's future,
and it will help ensure that artificial intelligence, emerging technologies,
and other industries of tomorrow are built, created and grown
(15:04):
right here in the USA.
Speaker 2 (15:05):
One of the beautiful things about Massa is he's.
Speaker 8 (15:08):
Very much involved with emerging technology, probably knows it may
be better than almost anybody.
Speaker 2 (15:15):
So it's a great honor.
Speaker 8 (15:16):
And some of you remember after the twenty sixteen election,
also SoftBank committed to invest fifty billion dollars in our country,
and they did in a very place to say that
they kept that promise.
Speaker 2 (15:28):
In every way, shape and form.
Speaker 8 (15:30):
And now they're looking to do one hundred and I've
looked at their books. They do have the possibility of
doing more. I'm going to ask them to do a
little bit more. But first I'm going to ask him.
Speaker 2 (15:40):
To speak, and just to say a few words. Massa. Please,
thank you, thank you, please.
Speaker 8 (15:45):
You think, thank you very much, appreciate it, thank you, Helm.
Speaker 2 (15:52):
Thank you so much. I'm very, very excited.
Speaker 9 (15:55):
I would really like to celebrate the great victory President Trump.
And my confidence level to the economy of the United
States has tremendously increased with his victory. So because of that,
I'm now excited to commit this one hundred billion dollars
(16:22):
and one hundred thousand jobs into the United States. This
is double of last time, as President Trump said, because
I say, oh, President Trump is a double down present,
I'm gonna have to double down, you know, one hundred
billion dollars and one hundred thousand jobs. This is you know,
(16:43):
my confidence level because that has doubled down. So I
am truly excited to make this happen. And of course
business is important, technology is important. But one more thing
I'm really hoping is that this President Trump would make
(17:07):
the world, bring the world into peace again. That's my
additional hope and and I think he will actually make
it happen. So anyway, I'm excited to go. And we
(17:28):
were discussing and President Trump said, Marsa, you know, double doll.
Speaker 2 (17:33):
Is not enough. Maybe you know, go for more. Right,
That's what.
Speaker 8 (17:37):
I'm going to ask him right now. Would you make
it two hundred million dollars he can, would you do that?
Speaker 2 (17:50):
Well, my promise is hungry. But you know he's now
asking to do more.
Speaker 9 (17:57):
I think you know with your leadership, my pop messive
is you is your support.
Speaker 2 (18:04):
I will, I will try to make it happen. That's good.
Five two hundred kill make it two hundred. Sh He
is a great nego say that he's a brilliant guy
and an unbelievable job.
Speaker 8 (18:21):
And the people of Japan and all over the world
are very proud of and a uh tremendous respect for
himself what he does, what he just did, and and
I would be surprised if if what didn't go to
do And when you say you'll try, uh.
Speaker 2 (18:35):
I know you'll do it. I will. I will really
try it.
Speaker 9 (18:37):
Yeah, And and I need your support though you'll have
my support alright, we have our country support all fantastic,
Thank you, my sport, fantastic, thank you, thank you.
Speaker 2 (18:47):
Where are saying legend the people of Japan who were all.
Speaker 9 (18:49):
Watching, well, uh, I'm sure uh our people in Japan
uh proud to uh make the pop muss of US
and Japan be stronger. And I'm very excited to make
this happen.
Speaker 2 (19:05):
Thank you very much. Thank you, thank you, thank you,
thank you. That's a good job.
Speaker 10 (19:13):
Thank you.
Speaker 2 (19:15):
It's amazing.
Speaker 8 (19:16):
It's a great gentleman at a great leader and a
great investor.
Speaker 2 (19:22):
So to have that offerm it.
Speaker 8 (19:24):
And we have so many companies coming in now where
that will be announcing or they will announce themselves. We'll
not have to be with them to do it, but
they'll be announcing. And as I said, small business optimism
took a forty one points jump forty one points.
Speaker 2 (19:38):
It went up forty one points.
Speaker 8 (19:39):
That's unheard of, and that's the biggest they think in
recorded history.
Speaker 2 (19:44):
But they know at least a minimum of thirty nine years.
So that's great.
Speaker 8 (19:47):
But on behalf of the American people, I want to
thank Massa for his faith and what's happening with our
country and what's happening with the world. There's a whole
light over the entire world. Many people, some reporters, and
speaking to them, they said, you know, it actually is true.
A couple of them are not necessarily friends of mine,
but they said, it is actually true that there's a
(20:08):
light shining over the world. We're trying to help very
strongly and getting the hostages back as you know, with
Israel and the Middle East, we're working very much on that.
We're trying to get the war, stop that horrible, horrible
war that's going on in Ukraine with Russia. Ukraine. We're
going to We've got a little progress. It's a tough one.
Speaker 2 (20:29):
It's a nasty one. It's nasty.
Speaker 8 (20:32):
People are being killed at levels that nobody's ever seen,
you know. It's very level fields and the only thing
that stops a bullet is.
Speaker 2 (20:40):
A body, a human body, and the number of.
Speaker 8 (20:43):
Soldiers that are being killed on both sides is astronomical.
I've never seen anything like it, and rapidly I get
reports every week and it's not even you know, it's
like just going down. Nobody's seen anything like it. It's
a very flat surface, a very flat land. That's why
it's great farming land. It's the it's the bread basket
(21:04):
for the world actually, but it's very flat and there's
nothing to stop a bullet but a body. There's no protection,
no nothing, and it's what's happening there is far worse
than people are reporting for both sides. So we're going
to do our best that we've been doing our best,
and we'll see what happens. But since the election, I've
been working every day to put the world at ease
(21:27):
a little bit, to get rid of the wars. We
had no wars when I left office, and now the whole.
Speaker 2 (21:32):
World is blowing up.
Speaker 8 (21:34):
But there's great optimism, and you saw that by soft bank.
Speaker 2 (21:38):
Starting on day one, we'll implement.
Speaker 8 (21:41):
The rapid series of bold reforms to restore our nation
to fold prosperity. We're going to go full prosperity and
to build the greatest economy the world has ever seen,
just as we had just a short time ago. We
had it in my turn, with the greatest economy that
the world had seen.
Speaker 2 (21:59):
We were blue owing away everybody.
Speaker 8 (22:01):
Our country was doubling up on China, doubling up on everybody,
and everybody knows it. And then we had to slow
it down with COVID, unfortunately at the end. But even
then I gave it back with a substantial increase of
the stock market.
Speaker 2 (22:16):
Bigger than it was pre COVID, So it was pretty amazing.
Speaker 8 (22:19):
Already, preparations are underway to slash massive numbers of job
killing regulationsing eliminating ten old regulations for every new one.
You put a new regulation on.
Speaker 2 (22:30):
You have to get rid of ten and we'll be
able to do it. And that was about the percentage
we had.
Speaker 8 (22:35):
We cut more regulations than any president has ever cut
by far, actually by approximately five times. Some of those regulations, unfortunately,
were put back on.
Speaker 2 (22:47):
But we'll catch up very quickly. We'll catch up with it.
Speaker 8 (22:52):
One of the things I'd like to ask the Biden administration,
as you probably heard, there are two events that took place.
Speaker 2 (22:58):
We're talking about.
Speaker 8 (23:00):
A friendly takeover, a friendly transition, as they like to say,
this is a friendly transition, and it is, but there
are two events.
Speaker 2 (23:09):
That took place that I think are very terrible.
Speaker 8 (23:12):
One is that if people don't come back to work,
come back into the office, they're going to be dismissed.
And somebody in the Biden administration gave a five year
waiver of that so that for five years people don't
have to come back into the office. It involved forty
nine thousand people for five years, they don't.
Speaker 2 (23:29):
Have to go. They just signed this thing. It's ridiculous.
Speaker 8 (23:32):
So it was like a gift to a union and
we're going to obviously be in court to stop. And
the other thing is really terrible. We spent a tremendous
amount of money in building the wall.
Speaker 2 (23:44):
The wall was.
Speaker 8 (23:44):
Designed specifically by the Border Patrol because it's very hard
to climb. They need to have see through They needed
to be steeled because you can't get it's very powerful steel.
It's very hard steal. It's a special type of steel,
but very very hard to cut. Inside the steel. As
you know, we pour concrete and that's a Grade ten concrete,
(24:06):
which is a very strong concrete, very as though you
were building about a sixty story building.
Speaker 2 (24:12):
It's very powerful concrete.
Speaker 8 (24:14):
They've made tremendous technology advances in the word concrete. Who
would think that, but I know that from the construction
industry today. What you can do with concrete is incredible.
So we have a very strong concrete and then we
have a rebar. We put rebar inside the concrete and
the rebar, likewise, is very hard to cut. So it's
(24:34):
a very expensive process, very expensive wall. And then we
put a anti climb plate on the top. You saw
that and I didn't like the look of it, But
then when I watched we had people testing, We had
mountain climbers actually testing, and they were not able to
get over the anti climb plate.
Speaker 2 (24:51):
So I said, all right, I guess we're going to
put it on that.
Speaker 8 (24:54):
Plate on top, which I never loved the look of it,
but it works so unbelievable.
Speaker 2 (25:00):
Well, you have to do it.
Speaker 8 (25:01):
So we spent a lot of money in building it,
and we have hundreds of miles that we put up.
A lot of people don't realize, but we did five
hundred and seventy one miles of wall. That's why we
had such good records, in addition to the fact that
Mexico helped us with their military. They kept people out
and they were actually very good under the past leader.
But now had we ordered an additional two hundred miles
(25:25):
of wall, it's very expensive, and now it's about double
the price of what it would have been six years ago,
and the administration is trying to sell it for five
cents on the dollar, knowing that we're getting ready to
put it up, and what they're doing is really an act.
It's almost it's almost a criminal act. They know we're
(25:46):
going to use it, and if we don't have it,
we're going to have to rebuild it, and it'll cost
double what it costs years ago, and that's hundreds of
millions of dollars because you're talking about a lot of wall. Well,
I built much more than I said I was going
to build. But then after it was built, I said,
you know, we can do some more because it's sort
(26:08):
of like water people flow through and that will pretty
much really take care of it. And what happened is
they just as you see, they're trying to sell it
for five cents of the dollar. And that's really that
has nothing to do with a smooth transition. That has
to do with people really trying to stop our nation.
(26:29):
And all it means really is that we're going to
spend hundreds of millions of dollars more, not even talking
about the time. Time would be pretty long, but we'll
spend hundreds of millions of dollars more on.
Speaker 2 (26:44):
Building the same wall that we already have.
Speaker 8 (26:46):
And people have already come back to us that have
deals at five cents and four cents, and one guy
at three cents on the dollar, and they offered to
sell it back to us at more money then it
costs us to build substantially, can you believe it. So
they make a deal with the United States to buy
it for pennies and then they call us, and they say,
(27:08):
do you want to buy it back? We'll sell it
back to you for hundreds of dollars a foot, hundreds
of dollars from pennies to hundreds of dollars a foot.
Speaker 2 (27:19):
And we can't let this take place. Now, we're going
to go.
Speaker 8 (27:22):
I spoke with the Attorney General of Texas. I spoke
to the Senators of Texas. I spoke to a lot
of people, and hopefully they'll be able to stop. We're
going to be having a restraining order. But just think
about how ridiculous it is. And this is just people
that don't want this country to succeed. And this has
nothing to do with Democrat or Republican. This has to
(27:42):
do with common sense. We won on common sense, and
this is maybe one of the most egregious examples I've seen.
So the people that are buying it, are trying to
buy it, are trying to make a deal with us
to sell it back at hundreds of times more, hundreds
of times more then we paid. And this is all
(28:03):
because the deb So I'm asking today Joe Biden to
please stop selling the world.
Speaker 2 (28:09):
We're going to use that.
Speaker 8 (28:10):
To create a strong barrier.
Speaker 2 (28:14):
And it worked.
Speaker 8 (28:15):
That's why our numbers were so good. It really worked,
and it worked well, and it's very expensive to do,
and I'm asking Joe Biden to stop his people from
giving it away. It's something that people can't even believe
is happening. So hopefully Joe will be able to stop it.
We'll soon unleash American energy and this will be done
(28:38):
at the levels not seen before, issuing quick approvals for pipelines,
drilling another infrastructure. It'll be clean energy, and we'll bring
in the price of electricity and we're going to bring
it down fast. We're also going to create clean coal.
Clean coal is something that has really taken over. We
have coal that will last for over a thousand years.
(29:00):
We have so much call, and with a process, it
becomes clean call. It's very powerful energy. Unlike wind. It's
very very powerful. And we're going to be doing a
lot of clean call for the people of West Virginia
and others, Wyoming, so many states. We have great states,
and they'll be happy to hear it. But we're going
(29:20):
to be very much into clean call. I don't ever
use the word call. I use the word clean call.
And I'll keep my promise to pass historic tax cuts
for American families, workers, and businesses that create jobs in America.
As you know, we're giving tax cuts if they do it.
Speaker 2 (29:38):
Here.
Speaker 8 (29:38):
We brought it down from forty four percent forty two percent.
In some cases it was thirty nine. We brought it
all the way down to twenty one percent, and now
we're bringing it down to fifteen but only if they
make their product, their car or whatever they're doing in
the United States in the US and people are thrilled.
I've had the smartest people on Walston called me. They said,
(29:59):
when do you get that idea? And it doesn't seem
that complicated, right, but it's nobody else.
Speaker 2 (30:04):
It's like the paper clip. Nobody ever thought of it.
One guy thought of it.
Speaker 8 (30:08):
Everybody looked at it, and they said, Wow, that was
a good idea.
Speaker 2 (30:12):
Why didn't I think of it?
Speaker 8 (30:14):
But we're bringing it down six more points and that
will put us really at the UH the best level
we've ever had for bringing in business. We've never been
down to. That level will be among the lowest tax states,
and a lot of businesses are going to come in
Between that and our taxing and tariff policies, We're going
(30:34):
to have business like nobody's ever seen in this country before.
That's why we're, you know, having a forty one year
record in optimism from small businesses and big businesses.
Speaker 2 (30:44):
And I'll keep my.
Speaker 8 (30:45):
Promise to pass historic tax cuts for families, workers, and
businesses that create jobs in America. Any business that invests
one billion dollars or more in the United States will
be eligible for fully expedited permits and approvals, including environmental approvals,
from the federal government. So when companies come in, if
they're going to invest a billion dollars and more, there'll
(31:07):
be many of them, and they'll go into Detroit, and
they're going to a lot of places where we want them.
You saw how well I did with the auto workers.
We did unbelievably well. You saw how well we did
with the teamsters, and also the non union were record
ninety eight percent, ninety seven percent. Nobody's ever got numbers
like that. Because we're bringing business back and they're all
(31:28):
coming back. We lost them over years of stupidity. I
call it the years of stupidity, the decades of stupidity.
Through the Department of Government Efficiency, Elon Musk has been
working very hard with various people including Vivek will go
to eliminate hundreds of billions of dollars of wasting fraud,
(31:50):
and I can only tell you, I'll give you a
little early report. They're finding things that you wouldn't even believe.
So we're looking to say, maybe two trillion dollars will
have no impact.
Speaker 2 (32:01):
Actually it'll make life better, but it'll have no impact
on people.
Speaker 8 (32:04):
It's not like we're we will never cut social security
things like that. It's just waste, fraud and abuse. And
we'll immediately restore the sovereign borders of the United States
and stop illegal immigration, which is costing US I believe
trillions of dollars a year. I think it's a cost
that nobody's ever seen anything like it. I don't know
(32:25):
how can you be satisfied releasing prisoners into the Uniteds.
To think of this, you're releasing prisoners from jails all
over the world, not just in South America, from the Congo.
Speaker 2 (32:37):
I would talk about it all the time.
Speaker 8 (32:38):
They're a very big sender of people, but from all
over the world. They're sending prisoners out of their jails.
Some of their jails are empty, and they will be
empty soon. If this ever continued, I spoke with a
president of Mexico, and as you know, I spoke with
Justin Trudeau of Canada, and we told them, not fair,
(33:00):
not right. Can't let these people come into our country.
And they understand they're very much unnoticed and they're going
to have to stop this from happening. They're going to
have to stop it. We lose a lot of money
to Mexico, We lose a lot of money to Canada,
tremendous money. We're subsidizing Canada with subsidizing Mexico.
Speaker 2 (33:18):
That can't go wrong.
Speaker 8 (33:19):
Then I get along with the people of Mexico and
Canada very well, but we can't let that happen. Why
are we supporting and giving other countries hundreds of billions
of dollars. It's not fair, it's not right, and the
people of Mexico and Canada fully understand that. We've talked
about it before, but now we're doing something about it.
(33:40):
We started and then we had to fix the COVID situation,
and that's what we did. But now we're doing it.
We're doing it from the beginning. Howard will be largely
in charge. We'll be working on her together. Howard's terrific
he's done a fantastic job, and he's now we leave.
Speaker 3 (33:56):
President elect Donald Trump was discussing.
Speaker 4 (33:59):
How Lonk, of course, and he's been discussing tax cuts
being promised, also asking on the current president Biden to.
Speaker 3 (34:08):
Stop selling the border wall parts.
Speaker 4 (34:10):
Is seeking a restraining order for border wall parts sales,
he says, criticizing basically the administration's.
Speaker 3 (34:16):
Selling of border war parts. He says, they're going to be.
Speaker 4 (34:19):
Fighting as well what they call federal workers return to
office waiver, and there's work underway to slash regulation more broadly.
He named checks FIVEK and of course Elon Musk there
and they made some progress as well in stopping the
war in Ukraine.
Speaker 3 (34:33):
You want to go back to.
Speaker 4 (34:34):
Also, though, the business being announced by, of course, the
CEO of SoftBank, Massioshi's son. He's the founder who's coming
on to talk about the one hundred billion dollars that's
going to be invested by soft Bank into the United
States over the next four years, the one hundred thousand
jobs made, and in fact, he was saying he's going
to try and make it even bigger two hundred thousand potentially.
(34:54):
Let's get to Mike Shephard and just let's focus first
on the tech side of all of this, because.
Speaker 3 (35:00):
It's deja vous.
Speaker 4 (35:01):
We saw half the amount promised, and they are said
to have been delivered by Massa back in twenty sixteen.
Speaker 1 (35:10):
This is an echo of what we saw eight years ago,
almost to the day, when Masa Isshu saw him made
this promise at Trump Tower of a fifty billion dollar
investment with fifty thousand jobs. And as Peter our colleague
discussed earlier in the program, he largely made good on that.
Trump is putting him on the spot today a little
(35:31):
bit already inking this one hundred billion dollar promise one
hundred thousand jobs and trying to get him to double
even that. And we heard Peter talk about how Masa
issue Saw may not have all that much in the
tank to be able to pull it off. But at
the same time we heard Son talk about how he
(35:52):
has such confidence in the incoming administration that maybe this
will be a way to help him gain some of
those investments and gain that capital needs.
Speaker 4 (36:02):
And the support of the next administration. The support of
Donald Trump as president shouldn't come as a surprise, Mike.
Speaker 2 (36:10):
No, not at all.
Speaker 1 (36:10):
And what was interesting also is how the president After
Somem left the stage, he talked about his commitment to
trying to I guess, revive and reinvigorate the economy from
the business perspective, not only by cutting corporate tax rates,
but by trying to cut red tape. And just last
week we heard him make the pledge that he reiterated
(36:32):
today that anyone investing a billion dollars or more in
the US would get speedier permit review. And that has
been an issue that we've heard energy companies and even
tech companies bring up. The tech companies that are getting
into AI have such energy demands that they need for
their data centers, and without that kind of support to
speed those projects, they see their AI ambitions at risk
(36:55):
of being slowed.
Speaker 4 (36:56):
We can indeed see onto social web. Presidentelect Trump had
to discuss the one billion dollars or more that can
be allocated to the United States and therefore getting that
expedited approval and permitting. Mike, it is seemingly all about AI,
all about energy when it comes to Mass's investment. Last time,
it seemed to be a whole host of I mean
(37:18):
people talking to the hundreds of companies that Soft Bank
put money into it via the Vision Fund and indeed buys.
Speaker 3 (37:24):
Soft Bank directly.
Speaker 4 (37:25):
We already see this money being allocated to Open AI,
for example. Are we expecting a mixture of startups and
publicly traded companies? Is there anything discerning as to the
direction of travel of which companies are going to be backed?
Speaker 1 (37:38):
You know, it's really tough to say right now exactly
how this money would be applied if it refers back
to already planned investments by soft Bank in other ventures
and vehicles, we just don't have those details. And in
a way, just like Trump's truth social post on cutting
red tape and regulation, we really don't know exactly how
(37:59):
he intends to do that either. So we're going to
have to see how this unfolds. And there will be
more to come from masseoshusan how much of this money
gets deployed into the US, how quickly and toward whom?
And I think there are a lot of startups, including
people who have ties into the administration, who will be
very interested in that kind of a partnership.
Speaker 4 (38:19):
Mike Shepherd always a joy. Thank you for breaking it
all down. Meanwhile, coming up, we'll have plenty more on
the future of the media landscape as well as costs
of AI's power hungry features. More next this bloombag technology.
(38:43):
We are watching bloombag technology right now and we're bringing
you the latest out. Of course, Trump speaking in Mara
Lago at a press conference discussing the future of TikTok
at the moment, so keep a close eye. They said
they're going to be taking a look at TikTok. We
know at the moment that the TikTok it's elf did
not get the pause that had wanted to see on
the potential divestment or ban that is likely to come
(39:05):
intoffect on January the nineteenth, the day before Trump is inaugurated.
So taking a look at the social media platform TikTok
will bring you any more breaking news coming from that
press conference. But we want to check in on the
markets because we are currently on the risk on attitude.
We're up NASA one hundred almost a percentage point higher.
Chip Make is Broadcom leading us on the higher side
as well. We're seeing Bitcoin up some three four percent,
(39:26):
a new record high. Once again, is MicroStrategy going to
be inducted into the NASA one hundred More money therefore
going there from allocated funds and what does that mean
more money probably likely to be spent on bitcoin by
that particular name. Meanwhile, we want to go back to
what has been the story of the day, and it's
investment into the United States as well, coming from SoftBank.
Massa was just at that press conference in Marinaco, massasun
(39:48):
of course CEO of soft Bank committing is going to
try two hundred billion dollars, but he has committed to
one hundred billion dollars of investment in AI and energy
and infrastructure.
Speaker 3 (39:56):
That following on, of course, for the.
Speaker 4 (39:58):
Fifty billion dollars he promised back in twenty sixteen. ARM
holding is interestingly down on the news. We're off by
five percent. It happens to me having its day in court.
We understand being reported that ARM and Qualcom had their
first day in court. Of course ARM and qual Com
buying over the future of their relationship. But maybe some
hypotheticals as to what ARM would mean in terms of
the ninety percent holding that SoftBank has in it if
(40:19):
he's going to be raising more funds. Let's also discuss
what it means to the investment landscape more broadly here
in the United States at the moment from a VC perspective, Look,
there's plenty of news when we're thinking about American AI startups,
and we've got a perfect voice on the Excel partner.
Mark Whiteground is with us today's VC spotlight.
Speaker 3 (40:37):
Matt, you are.
Speaker 4 (40:38):
Someone who's just been allocating interestingly to a public company
is of course based in Europe, but thinking about AI infrastructure,
about access to the cloud. Nimbus is the name of
the company you're looking at, But you're also just thinking
of the turf warfare that's out there to allocate money
to generator AIAI.
Speaker 3 (40:53):
This is just going to add to the party.
Speaker 10 (40:55):
Right, Yeah, absolutely, Well, first, thanks for having me on.
But we had Excel our big believers that we're only
in the early innings of laying down the infrastructure that's
going to be required to actually support this massive technological
wave of AI. So this committed investment doesn't surprise me
at all to see it coming in because we do
need that infrastructure. So I'm excited to see more infrastructure
being laid down for AI.
Speaker 4 (41:15):
Okay, where are you seeing the biggest opportunities. You've just
made this allocation of funds into a publicly traded allocator
of cloud. We've got Core, We've already out there as
a big pivot from all these companies that we're looking
at bitcoin mining and now getting into the world at
cloud computing. But what next in terms of areas that
you think are fruitful?
Speaker 7 (41:34):
Yeah, absolutely so.
Speaker 10 (41:35):
At Excel we broadly invest across two different facets of AI.
We think about infrastructure, which ATBs is very much an
example of that, also investing in companies like Scale AI
in the infrastructure layer helping build the data engine for AI.
But then we can't forget about the applications that are
going to run on that infrastructure. So we see great
opportunities in both enterprise and consumer applications. Our most recent
(41:55):
investment in the consumer side of things was into a
company called Speak, supporting language learning for AI.
Speaker 4 (42:02):
So that is the tussle right at the moment. There
is an awful lot of money being allocated to building
picks and shovels infrastructure, and many feel the valuations potentially
have gone out of whack. There we now go into
the killer applications that many are still waiting on. Do
you think we're actually there and people aren't seeing the
application and generator of AI right now?
Speaker 3 (42:21):
The real productivity games.
Speaker 10 (42:23):
Absolutely, we see it from the ground up, and we
see companies that are gaining real traction and driving real
value both in enterprise and consumer. So, although it is
still the early innings and a lot of the emphasis
has been on that infrastructure the training to get us
to the point where we can actually run inference on
these models and get the value out of them, I
think you're going to start to see, particularly across twenty
twenty five and twenty twenty six, applications spring up both
(42:44):
in enterprise and consumer that drive real value.
Speaker 2 (42:47):
To the end user.
Speaker 4 (42:48):
But then when I think of enterprise, you've got salesforce
all in on agent force, Who've got Microsoft trying to
offerate so copilots. Where is the space or is it
actually the all of these startups will end up being
eaten up by these bigger enterprise companies.
Speaker 3 (43:02):
That's the EXO strategy.
Speaker 10 (43:03):
Yeah, it's a really good question. So speaking on the
infrastructure layer with Nebus, what we actually see is that
by pairing their four hundred software and hardware engineers against
the problem of standing up infrastructure, but doing it with
an AI specific approach, we're able to offer a level
of flexibility that the large incumbents offering generalized clouds just
don't have in the ecosystem today. So that means that
(43:25):
people can come to us that need large amounts of compute,
that want bare metal, and people can also come to
us that just want an on demand, flexible experience with
their infrastructure.
Speaker 3 (43:33):
So as always, you see.
Speaker 10 (43:35):
The innovation in their early startups tackling some of the
holes and open opportunities in the large incumbents, and I
expect to see the same thing. Salesforce obviously defending its territory,
but we see a ton of activity and agentic approaches
and apps going after their exact market, so we'll continue
to see.
Speaker 4 (43:50):
It is a gentaki going to be the next sort
of over allocated area.
Speaker 3 (43:56):
I mean, we've all got way too.
Speaker 4 (43:58):
In the weeds when it came to chip and semi
conductors for twenty twenty four. When it comes to twenty
twenty five, we're all going to be parlaying and ergentic AI.
Speaker 10 (44:05):
I don't think it's over hyped at all. I think
in the reality is we're still in the early innings
and the expectations are quite high on what agents are
going to do within the enterprise. Application arena, and so
it's easy to point at the flaws and agents today,
but I tend to look at the progress of agents,
and as an investor, I look at where value is
going to be created over the next decade.
Speaker 3 (44:23):
And over the next.
Speaker 10 (44:24):
Decade, I think you're going to see really mature agents
hit the market and scale in a meaningful way.
Speaker 4 (44:28):
Come when they're ready and fit for purpose and can
talk to us a little bit more. Accel partner Matt
Wagan fascinating across the infrastructure and now of course the
application layer too. Let's just move to public markets for
a moment, because the Nastik debut for tech startup service Titan,
bringing big windfalls for early investors, includes more than one
million dollars going to Iconic Growth for example, over eight
(44:50):
hundred million going to best in my mention partners.
Speaker 3 (44:52):
This is all according to sources, and they told Katie Roof.
Speaker 4 (44:56):
Katie bring us the breakdown on who the big winners
were on this a well, it was culse enlisting that
popped so much that many would say that some money
was left on the table.
Speaker 11 (45:06):
Sure, absolutely, so there's a few things to get at here.
But so a service Titan, you know, they're an LA
based software provider for like the plumbing industry, other home
service providers. They've been around for a while, and so
even though you know, they were valued pretty highly in
some recent rounds, like you know, almost ten billion dollars
(45:29):
because Iconic and Bessemer and Battery Ventures bought so many
shares when it was such a young startup at a
small price that you know, Iconic stands to gain over
a billion dollars from this investment. I've confirmed Bessemers stands
to gain over eight hundred million dollars because even though
they have about nine hundred million dollars worth of shares,
(45:51):
it cost roughly maybe sixty million to acquire those shares.
Speaker 3 (45:54):
For Bessemer.
Speaker 4 (45:56):
Kh ruth all things on some of the allocations and
those that are reaping the rewards when it comes to
the latest IPOs, we really appreciate it.
Speaker 3 (46:04):
Thank you coming out from LA.
Speaker 4 (46:05):
I mean, while coming up AI's energy demand shock more
on how businesses are preparing for a future that requires
more resources as of.
Speaker 3 (46:12):
Blue meg technology.
Speaker 4 (46:25):
The AI boom has caused one unintended consequence. Businesses, investors
in society are now bracing for an energy demand shock
that comes with utilizing the resource intensive features bluem excellent
dwe joins US now for is a real deep dive
into the implications of artificial intelligence, one that perhaps one
MASSIVEUSI soun is looking to help finance some of the
issues in these issues.
Speaker 12 (46:45):
Yeah, what a coincidental timing for US to have just
put out this piece on the massive infrastructure demands of AI,
and not just energy, right, we were talking about the
demand on metals and mining, on land and real estate,
on human beings, on data, on data centers, on steel, copper, gold, aluminum,
(47:06):
and so if you put all of those together like
we did in that massive AI supply chain piece that
we did on Friday, you can understand and it's almost
not surprising for someone like Massa to say, yeah, we'll
drop one hundred million dollars in the US because they're
going to need it. The whole industry is the whole
industry is going to be a lot more than one
hundred billion dollars. So one might argue that these plans
have already been quite in the making.
Speaker 3 (47:28):
To that point.
Speaker 4 (47:29):
We've reported long and hard about Sam Altman trying to
gather sort of a table of international investors wanting to
bring on Yeah, coalition exactly, but how much are they
looking on this being built in the United States?
Speaker 3 (47:41):
So how geopolitically expose can you still be? You know,
that's a really good question.
Speaker 12 (47:46):
And I think that there is a narrative that is
playing out in the tech community right now that acknowledges
no specific country has all of the resources that are
necessary to build and dominate AI as a hub, and
so we will have to look for allies, We will
have to look for coalitions among like minded countries. That
(48:08):
is what the tech community and executives like open ai
and Nvidia are telling the administration in DC that it's
time to be thinking about how we can pull our
resources to own this technology but also control it in
the proper ways.
Speaker 3 (48:21):
Do you think your story is shocked anyone?
Speaker 12 (48:23):
Which, sorry, oh, I would hope So, I mean, I
would hope that it's a wake up call that I think.
If there is one message that I'd like to send
out of that AI supply chain data visualization, it is
that for all the talk of AI making the world
more efficient, quicker, less human resources intensive, it is actually
(48:43):
an incredibly resource intensive, inefficient technology.
Speaker 4 (48:47):
For now, at least Injuan. It's a great story, go
read it. Meanwhile, that does it for this edition of
New bag Technology you do not want to.
Speaker 3 (48:54):
Forget on podcast.
Speaker 4 (48:55):
You'll find out on the terminal, as well as online
on Apple, Spotify, and iHeart.
Speaker 3 (49:00):
This is brumbag Technology
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