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Sapphire Reserved for business offers 8x points on all purchases through Chase Travel, 3x points on social media and search engine advertising, airport lounge access and more. With over $2,500 in annual value, it's the card that gives back all you put in. Learn more@chase.com ReserveBusiness Chase for Business make more of what's yours Accounts subject to credit approval restrictions and limitation supply cards are issued by JPMorgan Chase Bank NA member FDIC Bloomberg Audio Studios Podcasts Radio News Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Broadcom surges as it signs a multi year agreement with OpenAI to design custom chips and networking equipment. Plus, markets bounce back back as President Trump signaled openness to a deal with China amid the latest trade showdown. What it means tech and Rare Earths and Warner Brothers Discovery has rebuffed Paramount skydance his initial takeover approach for being too low, according to sources. We'll have the latest, but first we go out to the Middle East. President Trump is in the middle of a visit in recognition of the end of the war in Gaza with both Hamas and Israel releasing hostages and prisoners today. Let's go live now to Bloomberg's Oliver Crook who's in Jerusalem for the latest sun setting with you we understand now President Trump has a arrived in Egypt. Yeah, that's right. Really, the sun setting here. In closing, what is a truly historic day for the region and certainly for the Israelis, where we see, as you said Caroline, the release of the last 20 living hostages into Israeli custody They are now back on Israeli soil. The release of those prisoners from the jails and being held by the Israelis back to the west bank, back to Gaza, back to a number of other places. A deal that was struck by President Trump through his sort of unorthodox foreign policy and something that really was inconceivable two weeks ago. The next step, now the next chapter is beginning in Egypt. As you can see Donald Trump sitting next to El Sisi, the president of Egypt, to try to figure out the sort of very difficult phase two of this, which is what do security conditions look like going forward in Gaza. Hamas is still armed. They have not agreed to put down their arms. That is really a precondition to make any of the sort of ambitious plans of the Trump 20 point plan come into being. That is a requirement and of course the question long term of governance of Gaza and this so called board of peace that will be chaired by Donald Trump and potentially other leaders. Those are the conversations that will beginning be beginning right now in Egypt. Bloomberg's Oliver Crook, A long day. Let's now listen in to President Trump as he speaks in Egypt and it continues till today. So I want to thank you all very much. I appreciate the way you covered the, this really momentous. I've never seen anything like the level of love, the level of respect for what it is. And it's, you know, it's, it's peace in the Middle east that everybody said it's not possible to do and it's going to happen and it is happening before your very eyes and that's why it's become so fascinating. Marco, do you have anything to say? Egypt has been a phenomenal participant. I think both Steve and Jared will tell you the critical role they've played and they can tell you themselves. They hosted the talks here and they're going to play a very important role now in the follow up, the implementation of this, which is really, it's not simply about restoring Gaza, it is about transforming the region. So we have an incredible partner, a long alliance, very capable partner here and a tremendous collection leaders. This is clearly in my mind, I think in the mind of everyone in this room. Probably one of the most important days for world peace in 50 years. That's not an exaggeration. Only 50, maybe 100 since the end of World War II. Mr. Wyckoff and Mr. Kushner, I'm curious, you've played such an important role in the tactical negotiations here as a lot more has to be brought to the table here. The minute we had ink the deal. Jared and I were already working on the implementation side of the deal. So we're dug in. We'll be here quite a bit. That's at the direction of the president. That's probably going to be one of the most important phases here. Jared is remarkable to work with. I talk about it all the time. And of course we both love working for the president. So it's a. It feels like a very honorable job. Mr. President, would you like to say something with the interpreter? Yes. Well, first of all, I welcome you to Egypt. It's a great pleasure and an honor to have you with us here in the city of peace, Sham Sheikh D Also to extend on behalf of all Egyptians and peace lovers around the world, salute the appreciation and the respect for this unprecedented and momentous accomplishment by our House. I've been very confident that you are Excellency is the only one who's capable of bringing this about and bringing in to this war. I even said that very precisely during my communication with your exes that you are the only one who is able to bring about peace and to achieve peace in this part. We head back now to Jerusalem and Bloomberg's Oliver Crook stands by to interpret what is currently a momentous occasion in Egypt. President Trump alongside the leader of Egypt. Oliver, just interpret the next steps that everyone now focuses on. Yeah, I mean, what is going to be the next step is really marking the moment for which we shouldn't sort of undervalue how significant it is. And that is going to be the signing of this sort of peace document, sort of ceremonial moment by presumably Donald Trump and a number of others who have been very active in the negotiations here. I mean, there have been a few nations that Trump has talked about a lot being very actively involved in negotiations. Of course, the Egyptians having played a crucial role, the Qataris, of course, as we know. But then quite unexpectedly and quite significantly, the Turks and President Erdogan who really came in and put a lot of pressure to bear on Hamas, which we understand it was really the Qataris and, and Turkey that put that pressure onto Hamas, that got them really over the line to come to this agreement and finally release those last 20 hostages. That has been the sort of one of the main war aims of the Israelis. One was to just destroy Hamas, the other was the release of the hostages. And as far as Hamas will be viewing the situation, really relinquishing their last sort of piece of leverage that they have against the Israelis. So absolutely significant. So bringing all of these nations together to start to discuss what the sort of post war the day after architecture looks like is I think has gone. It was always going to be the most difficult part of this conversation. And that is a conversation that begins now with President Trump sitting alongside President Sisi and Sharm El Sheikh and starting to begin to build those coalitions of trying to build a security apparatus within Gaza, one that is both credible to the Israelis and to the Palestinian people in order to bring in this sort of technocratic Palestinian led governance structure that can sit atop of Gaza in order to facilitate the rebuilding and of course, getting aid in and ultimately potentially, and this is a provision theoretically that is possible with this 20 point plan, a Palestinian state. Oliver Crook, live from Jerusalem. We thank you very much indeed. Now let's turn our attention to the broader markets right now. It has been a risk on mood to those that are participating at 1 1/2% on the NASDAQ 100 a bounce back from Friday when the anxiety around US China relationship dialed back risk taking. We now see 1 1/2 points added. It's interesting that of course we've got to dive into the side of the story. The key deal that you've got to keep an eye on is that between Broadcom and OpenAI, absolute surge in this particular chip stock. It's going to design not only chips but also networking equipment. We're up 9%, $150 billion being added to the market capitalization of Broadcom. Want to dig into that exact story right now because Bloomberg Seth Spigman joins us. And this is interesting because Nvidia and AMD seem to be able to get deals but had to sweeten them for open air. This time it's just plain old $10 billion to 10 gigawatts. It means that, yeah, I mean, we're still trying to figure out the exact financial contours of this deal. But it's also a bit different than some of the other deals that we've seen OpenAI do recently. I mean, they're trying not only to pave the way for more computing capacity, but also to play a more central role in sort of the stack that supports AI by working with Broadcom to begin custom designing their own chips. And I think we should expect to see more of this from OpenAI in the next couple of years as they want to be, you know, kind of simultaneously owning the AI models but also having certain to have some proprietary intelligence into how to best set up data centers and chips to facilitate those models. And it's interesting, Broadcom, of course, doesn't supply the data centers, but it provides a lot of the equipment that's going to be going into them. Seth, what is the argument? How much more efficient can your own design chips be? Alphabet already does it for example with Broadcom. Yeah, I mean it remains to be seen. But I think for OpenAI there's a couple of clear incentives here. One, it doesn't have to, you know, it's at the front of the line for these chips too. As it is closest to its own models, its own needs and the future of AI development, the company might be best positioned to figure out what it most needs from the chips out there. And three, OpenAI has a lot of experience now in setting up these data centers. When you think about the chips, racks and servers, it has a unique proprietary perspective on how to best design these data centers. All of that combined might help OpenAI cut costs and also build more efficient systems. Bloomberg. Seth Figeman, we so appreciate you joining. Let's get a portfolio management perspective right now. Uday to Revu is portfolio manager Harding Lovner. And today I'm really interested in the fact that you're, you've got holdings in video, you're clearly a supporter of the AI theory, but are we looking at a bubble and you get these sorts of deals? Well, you've got to look at it choice one in terms of timing of the deals. If it's, if it is a bubble, it's potentially an NPV issue. Is it, are we going to get all this revenue in 10 years time or 5 years time? And that's what the market is trying to figure out right now. People try to compare this to the dot com bubble, etc. But there's a difference here. A lot of the companies who are buying a lot of these products are supported by strong cash flows, free cash flows, which means that there is potential for these revenues to come through, especially if demand take up goes along the lines of what we're seeing in the last two, three years. I mean none more so have the financial flex than Nvidia. And it's interesting that Nvidia when signing that 10 gigawatt compute capacity with open air did give $100 billion in terms of support buying equity. Is those sort of circular financing deals something that gives you pause or do you think that that's part of what the deal needs to be? No, that does, that does give us plus you do look at that and say hang on, this is not clear blue sky. There are some things we need to think of. So that's why the Next two, three years are going to be really important because what we want to see is the return on the capex that companies like Alphabet meta A lot of these big, big, big companies are spending to show up. If it shows up, then what you realize is that this $100 billion is not circular but just the Kickstarter. So that's what, that's what we want to try to see. I mean you own matter and matter has shown up in terms of generative AI being folded into the advertising model, being able to be built in and bring real revenue to bear right here, right now. But how long are you going to have to wait for Alphabet's bet to really pay off for? We already seen Nvidia but you think more broadly opening events actually really showing that productivity is going to gain them in terms of revenue. So from an Alphabet from the software company's perspective we do think that the next 12 months are going to be really important. What you do need to see is not just the return on CapEx going through the revenue growth coming through to support that in 2728 that we are going to see a continued acceleration or at least stability in revenue growth. Without that it's very hard to see how the market market gets really comfortable with the amount of capex that's being spent right now. I mean you just said it does give you pause and there isn't just blue sky when it comes to Nvidia. So have you just been trimming some of the exposure? Is now been the time to just stay holding pat and not adding to some of the overall portfolio exposure to some of these names? So we tend to think of in terms of longer term. So what does this looks like in the next five years when you look at from that perspective the valuation doesn't look extreme at this point in time. It does look at to give us a pause in terms of look what else do we need to factor in to keep buying more? But at the same time it doesn't give us any fear that hey, this is an imminent bubble as you, as you asked at the start, well on Friday there was a lot of pause between us and China and particularly access to some of these companies to rare earths that ultimately are very dependent on China. How much have you been baking that into a supply chain headache for some of the companies you own. So that's again it's a timing issue. So there's two parts. The first part is is is this a prolonged issue, geopolitical issue. Then there's a lot of other things that you need to think of not just the semiconductor companies, it's all the FMCG companies, all the other companies that sell into emerging markets and all global trade. So that's, let's set that aside that this is a solvable problem that gets solved at some point in time. Then it's a timing issue already. What the companies are telling us is there's a, there's a real supply issue that they don't have enough computing power. Power. So that means the people who make these chips benefit from any of these supply chain issues because to them they get pricing power in the short term. But in the long term, this gets solved. So it's a temporary issue. So if anything, these sort of market dips is an opportunity that you look at saying, what are the good quality companies that you do know how pricing power that you want to buy into right now and what are they if it's not the obvious winners and darlings we've already seen hit $1 trillion? No, no, they still remain, as I said, they still remain attractive. But there's, there's a broader spectrum out there. If you look at companies like Delta Electro Electronics, which provides electronics and cooling equipment to data centers, you look at Schneider, you look at SAP, which is going to benefit from the fact that AI gets taken up by more and more enterprises. There's a bigger ecosystem than just the semiconductor companies or just the cloud companies and a global ecosystem. You name a couple of Europeans, then Uday to Ruvu is so good to have him in Harding Love. Now. We have a comeback soon. Meanwhile, coming up, rare earth stocks, they've been surging. We've just been talking about them. U.S. china trade spots have reignited. We're going to dig into that next. Next. This is Bloomberg Tech. Rare earth and critical minerals producers surged after President Trump and China reignited fears of a potential trade spat between the two countries. But just today, JP Morgan articulating it, will funnel one and a half trillion dollars into companies that will bolster US Security and resiliency, including minerals. For more, Bloomberg Senior Tech editor Mike Shepard joins us on what is a geopolitical story that is really affecting some of these stocks. What's your key takeaway today? Well, the key takeaway is that the ball is still moving between the two sides. We are seeing JD Vance playing bad cop in the discussions right after Donald Trump signals some openness to trying to back away from this standoff that just erupted over the past several days. J.D. vance saying, look, look, it is up to China now to make the Next move, Beijing in turn responding with the same saying, look, it is, it is Washington that now needs to make some sort of concession for us to relax some of these newly imposed export controls. And what is really hitting a nerve here in Washington is that it is a reimposition of export controls on railroads that are critical to so many industries here in the US Everything from consumer electricity, electronics to defense. But it is also the imposition of controls on the technology used to extract it. And that poses a complication for US Efforts potentially to try to do more of this at home. China is exerting what it sees as leverage in railroads because it holds roughly half of the world's reserves in railroads and it dominates production and refining of these materials, which are used, as I said, across the the economy, in iPhones, in consumer electronics, even smart vision goggles, night vision goggles used by the military. So we are seeing something crucial for the US But China is also trying to exert this leverage to perhaps get some concessions from the US on export controls governing things such as semiconductor manufacturing equipment and AI chips as well. And so this will be playing out rapidly. They don't have a lot of time to, to solve this before those tariffs that Donald Trump threatened take effect on November 1st. Now, the key thing, Carol, to watch this week, later this week will be that there will be a Chinese delegation here in D.C. for the IMF World bank annual semiannual meetings. We'll want to see what may emerge in terms of first steps toward a rapprochement. Mike Shepard, we appreciate the breakdown and let's stick with China. And joining us is Michelle Guyda, CEO of the Krach Institute for Tech Diplomacy in Purdue. Are we expecting a detente? Are we expecting a pullback from the brink? Because Friday it felt very much alive and well when it comes to anxiety. Well, I think what we're seeing is that this type of volatility is just the cost of doing business with a totalitarian state. And as long as it involves China, volatility and uncertainty in the market is really going to be a fact rather than a problem. And so I'd say there's two really important things here for business leaders to understand as we watch these negotiations continue. First is that every time that there's a 90 day extension here, it's not really a pause. We're just entering another inning of negotiations. And so this type of posturing is going to continue to happen and markets need to bake that in. So it's like make a note for February, because if we get to November and then we get another extension, then this is all going to happen again. So it's piece number one second and even more importantly is even when we have an agreement, we are doing business with a totalitarian state in the Chinese Communist Party. So we still can't relax because they aren't in the business of honoring agreements until the point that it becomes inconvenient it for them. And so real stability here in the long term isn't going to happen until not not just when there's another agreement, but real stability is going to come from when there's total American dominance in the next generation of industry. So China becomes a non issue. Well let's talk about rare earth for example. We had the CTO of Palantir, Michelle on the show on Friday and really Sham Sankar was saying he thinks the leverage is being exerted by China at right here, right now because of the independence starting to be shown with MP materials in the state being built there. The idea that the US has got the memo that they need to be more dependent on themselves for rare earths. Is that the reality here? And how quickly can that unfold? Yeah, I think, I think all of this is going to be a tit for tat and a grinding incremental struggle until the United States pulls away. And you know you mentioned Palantir. I know you were also talking to Palmer Lucky at Andrew last last week. When you think about total American dominance in the next generation of industries that's going to come from the private sector. And so what we're watching on a day by day basis is the governments go back and forth and our government in the United States plays a really important role when it comes to defense export controls, leveling the playing field like with tariffs. But when it comes to offense, that is going to be a private sector role. We have to build new technologies, we have to manufacture them here at home. We have to create new categories, we have to regain control over materials, over all of our supply chains and we have to move really fast. And so you mentioned the investment at JP Morgan now pumping billions or trillion and a half dollars into really important national security industries. You talked about Palantir, Anduril. I was in Austin last week with the team at Saronic doing really amazing things with the next generation of autonomous vessels, building them here at home with speed and scale. That is what Victoria Victory looks like. The JP Morgan event. And well signaling is $500 billion more than perhaps would have been anticipated. One and a half trillion. What really can they do in terms of funneling channeling money to these sorts of key industries because many would say, look, this is just the right sort of lip service you need to pay to the current administration. Well, I think when they're pumping capital into really important businesses and industries, what they're allowing them to do is go faster, faster. And I think that's been the name of the game here. China has a competitive edge because they can move fast. Since they are a very top down totalitarian state here in the United States, speed has to be our, our next weapon. And so pumping capital into these really important industries is going to enable us to move faster, to build, to rebuild and to dominate these important sectors in order for us to leave the 21st century. Michelle Guy to running too. We've had them on the show and can't wait to talk more. A little bit about autonomous vessels from the Kroch Institute. We so appreciate your time. Meanwhile, coming up, Elon Musk's Dubai loop set to open in 2026 according to Emirati official. We'll talk about that plan next. This is Bloomberg Tech. When your business evolves, so does your risk of data loss. But with Veeam, your data is always on the map. Partner with Veeam for coverage that keeps you moving and get protection for workloads of all shapes and sizes, even the ones you haven't created yet so you can stay resilient as you scale. With Veeam, it's all good. Get workload coverage that works for your business. @veeam.com that's v e e a m.com you're thoughtful about where your money goes. You've got your core holdings, some recurring crypto buys, maybe even a few strategic options plays on the side. The point is, you're engaged with your investments and Public gets that. That's why they built an investing platform for those who take it seriously. On public, you can put together a multi asset portfolio for the long haul. Stocks, bonds, options, crypto. It's all there plus an industry leading 3.08% APY high yield cash account. Switch to the platform built for those who take investing seriously. Go to public.com and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com paid for by Public Investing. All investing involves the risk of loss, including loss of principal. Brokerage services for U.S. listed registered securities options and bonds in a self directed account are offered by Public Investing Inc. Member FINRA and SIPC Crypto trading provided by BAKKT Crypto Solutions LLC Complete disclosures available at public.com disclosures Introducing the all new Adobe Acrobat Studio now with AI powered PDF spaces do more with PDFs than you ever thought possible. Need AI to turn 100 pages of market research into 5 insights with a click. Do that with Acrobat. Need templates for a sales proposal that'll close that deal. Do that with Acrobat. Need an AI specialist to tailor the tone of your market report to sound real smart in real time. Do that with the all new Adobe Acrobat Studio. Learn more at adobe.com/do that with Acrobat. Commuters in Dubai could travel along Elon Musk's underground transit system as soon as next year. That's according to an Emirati official. Now the project announced back in February by Musk's boring company would be a rare success for the tunneling startup. The first phase is set to span 10.6 miles and carry carry 20,000 passengers an hour and is part of the UAE's broader push to ease congestion from its growing population. Let's pivot now and look at what's happening in the crypto markets because bitcoin, boy did we have a significant sell off in the last three days. We want to push back to what happened on Friday evening. Crypto market experience a brief but seriously intense crash that was particularly felt in the altcoins at one point losing much as 40% within minutes minutes as the 100% tariff threat on Chinese imports came from President Trump. Critics really talking about crypto market structure here. A lack of liquidity, excessive leverage in particular some glitches that seem to occur in auto deleveraging control mechanisms over an exchanges like Binance. But we keep an eye. Bitcoin now up and flat over the course of three days. Coming up plenty more on open air and Broadcom, a multi year arrangement for custom chips and networking equipment that has sent Broadcom stock soaring. From New York, this is Bloomberg Tech. Welcome back to Bloomberg Tech. We check in on these markets that are back in rally mode after Friday's anxiety. China US dialing up once again the trade tensions earnings we bounced back as both seemed to calm rhetoric on the day we were at almost 2 percentage points, particularly chip stocks. Let's just dive in and see what's happening in terms of the semiconductor index which is basically every single member in the green. All bar one. Nvidia up 2.8% as we continue to dial in on the opportunity. AMD is at 1.6% but Broadcom leads the charge more than 9% $150 billion added in market capitalization innovation as we see a deal to be helping with custom chips and indeed networking gear for open AI. And they don't even have to spend their own equity it seems. Let's get to that key story of the day between Broadcom and OpenAI. We might sing his Bloomberg Intelligence Global head of tech research. And what's been so interesting about these golden touches from OpenAI for some of the big publicly traded companies is usually open has been given a sweetener by Nvidia, by AMD broadcast. Com. It just seems to be independence that they give to OpenAI. Yeah, and I think the model here is the Google CPU model. I mean when you think about Broadcom's almost $20 billion run rate for AI chips, more than half of that is from Google TPU's. So what OpenAI is saying is you help us get there in terms of the ramp up like Google TPU's, which is in their seventh like version of chip chips. I mean, and they've done it at a very quick pace. So from that perspective it will help OpenAI reduce costs of up to 30 to 40% per gigawatt. If you think about, you know, 1 gigawatt takes 40 to 50 billion. A 1 gigawatt with Broadcom chips will be at least 30 to 40% cheaper because the cost of those chips is the highest component in that gigawatt buildout. So Broadcom helps you lower that cost of chips. And I think that's the model here that yes, we want merchant silicon, but we also want custom silicon with Broadcom because that's the kind of diversification Google has and that's why their cost of infrastructure is the lowest among all the hyperscalers. Well do the read across for the TPU farming from Google. Who else is in the mix there? Because here Broadcom says I'll help you custom design a chance chip, I'll help you with networking gear. But there's a lot more to an AI data center than all of that. Absolutely. And you need to source the power, you need all the other deals. But in the end when you look at, you know, what Amazon is trying to do with Trainium, they're doing that with Marvell, Microsoft is doing that with Marvel as well. And they haven't had the same kind of success that Google has had with TPU's with Broadcom. So to my mind, you know, it was natural for OpenAI to try with Broadcom given the success that again Google has had compared to everyone else who is trying to do custom silicon. And yeah they will do deals for power. That's what OpenAI is good at in terms of sourcing different providers. That's what Sam Altman has shown. But clearly chips is the component that costs 60 to 70% of the data center. So you want to make sure you get that at the lowest cost. You won't be able to do that with Nvidia. Nvidia will still be the highest cost chip provider even though they are making an investment. AMD has will likely cut its cost but it won't be the same performance per watt. Broadcom will do it custom specs for you and then they can do it at scale that Google is doing and it's for inference and I'm interested if you can interpret when OpenAI Sam and and hock tank get together on a podcast in an this sort of a deal what is it that by understanding your own large language model and the needs of it that can really be built into the custom silicon? I mean just this past weekend I read about tiny recursive models. So everyone is looking at how these large models can be run more efficiently in terms of inferencing costs. And you know, whether it's tiny recursive models or some other form, you want minimum latency as well as you know power is your real constraints. So you want maximum performance per watt. So if you're optimizing for those two, you are going to go with custom silicon because that's what Google has shown us they can you run YouTube videos best because it's their custom silicon. No other merchant silicon can give you that kind of performance. And I think that's what OpenAI is going after multi year deal $10 billion is what they signal back on their earnings at the beginning of September. Mandeep Singh and Bloomberg Intelligence really breaking down down the why now? Let's go to Bloomberg's tech equity reporter Ryan Stella can now who can help talk through the US Tech stocks, the rebound that we're seeing at the moment and indeed what Oracle is up to on the day. But first Ryan, we talk about the rally we're seeing in tech stocks. How much is that a relief from some of the talk between us and China over the weekend or indeed this latest Broadcom deal. Hey, good morning. So when I came in this morning everything was pretty broadly higher which did seem to be some relief over the latest latest developments with respect to China. But certainly when we got the news about Broadcom and OpenAI that stock absolutely skyrocket. I think you mentioned before 140 or so billion dollars in added market cap really helped augment the moves that we are seeing in the chip space today. And obviously this comes in the wake of several other deals involving OpenAI, AMD, Oracle, Nvidia, so on and so forth. Obviously this has become an incredibly influential company that is really just driving, generating massive gains across the space. Talking of massive gains throughout the year, but now perhaps also rallying on the day is Oracle. We've had an interesting narrative come back to really realization last week that maybe Oracle doesn't make that much margin every time that it's selling compute to open AI. What has Oracle got on the agenda this week and the time that they need to prove it? Well, they have their AI World conference this week. I believe it starts today and goes all the way till Thursday. A lot of highlights. There's going to be a couple of keynotes tomorrow including from Larry Ellison and the new co CEO. There's going to be an analyst day on Thursday where people are expecting some updated financial targets. So there is a lot that's going on this week and there's going to be a lot that people are going to be paying attention to. One person I spoke to said he's actually hoping oracle increases its CapEx guidance here at the conference because that would be an indication that people are feeling pretty confident that the recent deal they announced with the OpenAI, which was I think for 300 billion over five years, that that money is going to be a pretty reliable driver for them. There is some concern right now about, you know, where is all this money coming from? How is Open Air going to finance all these massive deals it's doing right now. So maybe getting some more capex figures there. That's something people are watching out for to maybe justify some of the moves that we've been seeing. I mean 35 billion was where capex was meant to be hitting in fiscal 2026. They see that that was up more than 60% year on year. So run talk to some of that anxiety about where money is ultimately coming from. Do you think this week we will still see the concerns around an air bubble? I think it's going to be hard to ease those concerns completely unless we get some real sort of updated numbers out of some of these companies. I know a lot of people are really looking ahead to the upcoming earnings season and see what we get out of Microsoft and Amazon and Alphabet and Meta, you know, all the major cloud companies, all the major customers to Nvidia and the other infrastructure stocks. That's going to be really key for people to feel like that the spending train continues to move on. And of course anything we get that sort of speaks to the ROI that these companies are seeing from AI. That's going to help ease concerns as well. Thank you very much indeed for joining. Meanwhile, coming up, Warner Brothers robust the takeover approach from Paramount Skydance. 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Simplify how you stock up to get ahead. Go to amazonbusiness.com for support. You actually need more content to use, yield more engagement. And so we would actually want to be in the business throughout whatever lens we were looking at of actually producing more, you know, more movies, more television series more to get to scale because you need that content, you need that great storytelling to yield engagement. And from that standpoint, we're also in the business, first and foremost of creating long term value creation. David Ellison, that CEO, Paramount Mount Skydance, at of course, our screen Time summit last week for a moment. His company, it seems, won't be getting more content from a takeover of Warner Brother Discovery. According to sources, Warner Brothers rejected Paramount's offer for being too low. Let's get more on this from Geetha Raginathan. She's a US Media analyst from Bloomberg Intelligence. And it seems from your analysis that really Paramount needs the content perhaps more than Warner Brothers needs the price point. Absolutely. Paramount really needs a strategy. Caroline. So, yes, they have Skydance. That deal took, as you well know, it took months, played out for months, but finally everything was done and dusted in early August. But really, I mean, as you kind of look at Paramount, you kind of look at the assets, you look at the business, there's really not a whole lot to get excited about. You know, you have the linear TV networks, they bring in majority of the profits. But remember, that's a declining winning business. We've seen profits almost being halved over the past four to five years. You have streaming, which is the way of the future, but it's really not generating profits yet. And it's a subscale business. When you compare it to the likes of Netflix or Amazon or even Disney plus, they have only about 70 million subscribers. So they absolutely need content. There's no doubt about it. Warner Brothers, arguably one of the best businesses out there in the media ecosystem. You just look at some of the other, you know, the ip, it's top tier ip. I mean, whether you're thinking of Game of Thrones or, you know, Harry Potter or DC Comics, they have it all. So I think definitely that, you know, Paramount needs them pretty badly. Let's talk about what Warner Brothers Discovery is currently up to, though. They're splitting in two, feeling that more, well, certainly more value can be accreted to the streaming in the movie side. What then happens to your average cable that they're continuing to have as a separate part of the company. Yeah. So that really, I think is the major dilemma right now for David Zaslav and his team at Warner Brothers Discovery, because they know very well that once they split the company, I mean, streaming and studios will be off to a fabulous start. There's going to be a lot of demand of, you know, in terms of content. The profitability looks good. The real problem is with what is called the global networks business and which is being called Discovery Global just to kind of reflect all of the cable networks. So the problem here again is, is right now actually it brings in majority of the company's profits. So it's about 75 to 80% of the company's profit. But again, here it's the same old story, which is, you know, advertising revenue, affiliate revenue in decline. So we're going to see, you know, EBITDA fall. And so that's kind of where really the big head scratcher is for David Zaslav because the offer that Paramount is giving now is for the entire company. So he's also kind of he can get to offload the TV network networks basically kind of say bye bye and not have to worry about it. If you go through with the split. The problem is what happens to the TV networks. There's not a whole lot of, you know, bright prospects in terms of growth. And the bigger problem is that it will also have a lot of the debt. Remember, Warner Brothers right now has about 30 to 35 billion dollars in debt, majority of which will travel with that global networks segment. The story will keep unfolding. We thank you, Geetha Raginath and US Media and analysts analyst for Bloomberg Intelligence. Sticking on entertainment shares at Disney, they spiked earlier this morning after Taylor Swift announced new content, including a docu series that would premiere on Disney plus in December. Company as you see, shares up 1 1/2% at one point, up 3 1/2% in premarket trading. Really another sign of the economic power of Taylor Swift. Meanwhile, President Trump's proposed tick tock transfer plan would get give Washington greater oversight of the app's safety and data security and could allow US Authorities access to user data. For more on the future of tech Talk, Bloomberg's Alex Levine, who covers the platform, joins us now. And we've got to put it in the context of US China diplomacy or lack thereof at the moment and the worries about dialing up of trade tensions, what that means to tick tock. But Alex, what's really important about your Business Week story is it shows how much control role the US Government can have over data, not just the Chinese government now. Absolutely. You know, there's still lots of details around this deal that are being worked out. And as you said, there's questions about US China relations and how things could really change as they have over the last couple of days that could affect how this deal plays out. But one thing we've been very interested in focusing on is the role that the US government could play. Really raising the question that the US government may be able to do some things on TikTok here that Americans have for many years been concerned China is doing on its own version of TikTok there in potentially determining, you know, inspecting code on the app and in potentially determining how the algorithm is retrained. There's some sort of reading between the lines in the executive order that President Trump signed on TikTok and some briefing that the White House put out with reporters that could suggest, suggests that the White House may actually have more sway over a future tick tock than people may be be aware of yet. There's a line in your story when President Trump was quoted as saying, if I could make it 100% MAGA, I would. He said from the Oval Office, September 25. But I'm not going, it's not going to work out that way. Just Alex, we have so many questions around ensuring that these social media companies aren't biased in any way way. So what do you think ultimately will become of trying to signal that lack of bias or not in the future for TikTok? Well, I think what Trump's, you know, the rest of that quote is that Trump really wants to ensure that there is no bias on the platform. But I think that based on what we have seen with other social media platforms and the way that they have gone, especially since, since President Trump has taken office again, we know that there are really no guarantees and also that ownership of these platforms, platforms really matters. When Elon Musk took over, took over Twitter, which he now renamed to X, it became a very political platform. Even though he allowed a lot more speech to flourish on the platform than previously, it really became a bullhorn for his own politics. Similarly, since Trump took office, we saw that Mark Zuckerberg has made Metta meta platforms more in line with the Trump administration's policies in allowing more speech. So I think even though Trump reassured everybody in the Oval Office and that statement that you, you just, that you just pointed to that he does want this to be a platform that's not just 100% manga, but that does include, you know, perspectives and philosophies and ideologies from, from across the spectrum, there is always the chance that the, that the ownership could have some sort of a role in what people ultimately see on the platform and talking that platform. TikTok has not been pulled off the table at this point. According to Jameson Greer, he's negotiating with China. Bloomberg's Alex Levine, thanks for the update. Coming up we'll discuss the business of space growing space tourism industry. Ezny Uzo Okoro from the Harvard Belfast center. This is Bloomberg Tech. SpaceX plans to launch Flight 11 of its Starship Starship mega rocket tonight. The last one using Starship version 2. This is the company prepares to transition to Starship version 3 which is expected to perform orbital launches and recoveries. Joining us now is as an AZO Senior Fellow at the Harvard Belfer center, you used to be serving as a NASA executive and a former assistant director for space policy at the White House. So you are in the know. Just how crucial is this test later this evening? Oh, it's critically important because what we're going to see are thermal tests, some stress tests, some flight maneuvers as they prepare for the next version as you indicated and it's going to take them several months because they are going to ensure that Starship version 3 will go into orbit, conduct some recoveries and it will be very exciting to see what's coming down from SpaceX after that. I think that the market, it will be very interested in where this, this unstoppable company is headed. And put into the context of how unstoppable it is because we've had a slight delay on delivering Amazon's Kuiper satellites into low mid earth orbit, but that's still on track. And the fact that basically Space X is helping other competitors enter and get into space, what does that signal about its dominance still and Elon Musk's? I think that it's just clear how important this company is as a whole. Not just as a competitor but as a leader in this in the sector. So as a leader in space at launch, they are able to help competitors get up to space. And as a leader in broadband communications and in the space sector writ large, they are able to continue to accelerate the their progress. So this is, this is very big and with Calper we also have to acknowledge that what this does is it's great news for the US Geo strategically since we will now have two major, at least two major players in the broadband from space ecosystem as other countries continue to build their satellite constellations to provide the same service. When we think about Dollarman dissonance not only in the provision of satellite communication but just in rockets, full blown how are we seeing other companies perform? I mean Blue Origin has been active in the last month. They have been and they have been doing quite well. So you see New shepherd which was designed for commercial purposes has taken six additional people up to space and their numbers are totaling at about 86 ticks, which is exciting for space tourism. You know, you and I should be able to get on on their backlog of space tourist tickets, you know, perhaps soon as they continue to complete these, these launches. So it's really important to see the companies continue to show consistency. You know, when you particularly in a business, it's so complex and that consistency really helps to ensure that, you know, the market keeps moving, the space economy keeps growing bigger and bigger. Are they getting consistency from NASA at the moment? I put a pointed question to you because our own Ed Ludlow has been breaking extraordinary stories here at Bloomberg and really one of them being that Jared Isaac man is perhaps back in the mix to discussions with President Trump to particular potentially lead NASA him of course of shift for payments and close relationship with himself being an astronaut and having relationship with with of course Elon Musk. Is there need a void felt in NASA right now without someone at the helm? Well, the agency is closed at the moment given the government shut true that political, political technical pause. And secondly, you have to think of this technically as well as economically. So technically, while NASA is needed, these companies are mature enough that they can continue to show consistency in their products without NASA conducting reviews, which is fantastic news. Then economically, quite like with space tourism and with Space X's starship tests, you don't we don't really need the agency around as these companies continue to show that the commercial space sector continues to grow. So we do need them politically and strategically for the future. But the companies are showing that they are part of a growing asset class and they're part of a mature sector and they are not completely reliant on an agency that is currently closed. What it seems though is that perhaps mission operations over at NASA have been saying perhaps look, then we'll still be stop start when it comes to getting to the moon or getting to Mars. Just update us on what the longer term goals are for NASA and for US space more broadly, briefly. So currently the Trump administration is supportive of us returning to the moon and then moving on to Mars. They are interested in moving that timeline closer so that we get there and sooner than probably 2028. And at the intersection of all those timelines is Space X. And not a surprise, they are going to supply some of the critical transportation and there are some NASA vehicles that are going to also conduct these transportation to to the moon and elsewhere. But we do stand a good chance to meet both the administration's goals and NASA's goals of exploration, just given how mature and the technical team are as an Azure Okora. We appreciate your time of the Harvard Belfer Center. Thank you. That does it for this edition of Bloomberg Tech Markets Rallying Today. Don't forget our podcast. This is Bloomberg. How can you free your team from time consuming office tasks? 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