> FROM THE HEART OF WHERE
INNOVATION, MONEY, AND POWER COLLIDE, THIS IS "BLOOMBERG
TECHNOLOGY" WITH CAROLYN HYDE AND ED LUDLOW.
CAROLYN:

LIVE FROM NEW YORK, THIS IS
BLOOMBERG TECHNOLOGY. POLITICAL ANXIETY HITS TECH.
CHINA DIALS UP TRADE TENSIONS WITH THE U.S.,
AND WE BRING YOU THE LATEST ON SOUTH KOREA'S MOVE TO MARTIAL
LAW.

SPACEX WAYS AND OFFER IT COULD
BOOST ITS VALUATION TO $350 BILLION.
AND WE SIT DOWN WITH THE CEO OF AT&T AS THE COMPANY PREDICTS
DOUBLE-DIGIT PROFIT GAINS IN

2027.
FIRST, WE CHECK ON THE MARKETS. WE ARE OFF ON THE NASDAQ 100 AT
A DAY APPLE HITS A NEW RECORD HIGH.
WE HAVE A LOT TO TALK ABOUT. YES, INTO THE RED IN TERMS OF KEY MOVES
ON THE DOWNSIDE.

I ALSO WANT TO SHINE A LIGHT ON
SOUTH KOREA. ITS STOCKS THERE, FROM THE
TECHNOLOGY PERSPECTIVE—SAMSUNG, EVERYTHING TECHNOLOGY—
ARE A KEY EXPORTER FOR THIS COUNTRY.

OFF SIGNIFICANTLY WHEN YOU'RE
LOOKING AT SHARES TRADED ABROAD IN LONDON AND GERMANY.
ALL THIS AS WE UNDERSTAND THE LEADERSHIP IN SOUTH KOREA MOVES
TO MARTIAL LAW. MEMBERS OF THE PRESIDENT'S PARTY ARE NOT AGREEING WITH

THE MOVE THAT HAS BEEN MADE.
YOU WILL GET UP-TO-THE-MINUTE NEWS WITH US.
IF YOU HAVE A BLOOMBERG TERMINAL, CHECK OUT TOP LIVE.
THERE IS A BLOG WITH THE LATEST ON SOUTH KOREA.
WE WANT TO BRING YOU WHAT IS

THE UP-TO-THE-MINUTE REPORTING
FROM MIKE SHEPPARD, WHO JOINS US FROM WASHINGTON.
SO MUCH TO BE DEBATING WHEN IT COMES TO GEOPOLITICS.
THEN YOU START WITH US IN SOUTH KOREA.
HOW EXTRAORDINARY THE MOVEMENTS

ARE BEING MADE. MIKE: IT EVEN CAUGHT MEMBERS OF THE
PRESIDENT'S OWN PARTY AND AIDES OFF GUARD.
THEY WERE NOT EXPECTING THIS. IT WAS BORN OF FRUSTRATION
OUT OF A DEADLOCK OVER THE BUDGET

BETWEEN HIS MINORITY PARTY AND
THE MAJORITY DEMOCRATIC PARTY AND THE NATION'S PARLIAMENT.
THAT STANDOFF HAS BUBBLED OVER INTO THE COUNTRY'S FIRST
DECLARATION OF MARTIAL LAW IN

44 YEARS.
IT IS UNCERTAIN WHERE THINGS ARE GOING FROM HERE.
TROOPS ARE REPORTED TO BE IN THE NATIONAL ASSEMBLY BUILDING
AND SOME MEMBERS OF PARLIAMENT MAY BE MOVING TO TRY TO BLOCK THIS.

THEY HAVE THE AUTHORITY TO DO
SO, BUT THEY NEED A MAJORITY PRESENT, WHICH WOULD BE
AT LEAST 150 LAWMAKERS. THIS IS A FAST-MOVING STORY, SO
WE WILL HAVE TO KEEP CLOSE

WATCH TO SEE WHERE THE STANDOFF BETWEEN THE PRESIDENT AND HIS OWN LAWMAKERS ENDS UP HEADING.
CAROLINE: WE HAVE BREAKING NEWS THAT THE SOUTH KOREAN PARLIAMENT HAS PASSED A REQUEST FOR MARTIAL LAW TO BE LIFTED, AND THEY SAY

SOUTH KOREAN LAWMAKERS WILL VOTE ON LIFTING MARTIAL LAW.  NOTING, AS YOU SAY, AND ACCORDING TO THE LATEST REPORTS, THAT DOZENS OF LAWMAKERS HAVE MANAGED TO ENTER THE MAIN HALL OF THE

NATIONAL ASSEMBLY, ACCORDING TO FOOTAGE FROM KBS.  150 LAWMAKERS NEED TO BE PRESENT FROM A CONSTITUTIONAL PERSPECTIVE. THIS DOES HAVE AN EFFECT ON LIQUIDITY, EVEN THOUGH THEY'VE

MADE A MOVE TO ENSURE LIQUIDITY IS AVAILABLE FOR THE MARKETS. FROM A TECHNOLOGY PERSPECTIVE, SAMSUNG AND OTHER COMPANIES ARE CURRENTLY WORRIED ABOUT THE NEW U.S.

ADMINISTRATION AND WHAT THAT MEANS FOR TARIFFS AND THEIR OWN EXPORT SALES. MICHAEL: THERE IS SO MUCH HAPPENING FOR THESE COMPANIES RIGHT NOW BETWEEN THE U.S. CAP -- THE U.S.

CHIP EXPORT CURBS ANNOUNCED YESTERDAY AND THE CROSS CURRENTS WITH THE NEW ADMINISTRATION,  AND THE RELATIONSHIP BETWEEN SOUTH KOREA AND THE U.S., AND THE REST OF THE WORLD, WITH THE PRESIDENT-ELECT THREATENING TARIFFS ON IMPORTS TO THE U.S.

Adding this to the mix is another bit of volatility for key companies like Samsung, as you highlighted. Caroline: YTN TV is reporting it is uncertain whether South Korean

stock markets will open on Wednesday. We want to talk about what is happening with the China-U.S. tit-for-tat limitations on key metals for technology use. Michael: This is something that is not

to be overlooked. All of the global conversation about turmoil here and in Paris... The Chinese took a significant move in the overnight hours to counter the chip curbs the

Biden administration announced yesterday. This would limit imports and exports to the U.S. from China of key minerals. These would include gallium and germanium. These are not something that is

traded very heavily like the way you might think of oil with a trillion-dollar market. These are tiny amounts exported each year, but they are significant.

They end up in semiconductors. They end up in satellites. These materials also show up in night-vision goggles. It is hitting the U.S. in a way that is aimed at the

DEFENSE INDUSTRIAL BASE AND THE TECH INDUSTRIAL BASE. FOR THE MOMENT, THE U.S. IS TAKING THIS IN STRIDE. THE WHITE HOUSE HAS NOT RESPONDED TO THIS. THE INDUSTRY HAS BEEN ABLE TO ADAPT SO FAR TO EARLIER

RESTRICTIONS CHINA HAD ALREADY IMPOSED ABOUT A YEAR AGO. THEY'VE BEEN ABLE TO FIND ALTERNATE SOURCES OF SUPPLY FROM THEIR OWN INVENTORIES, AND THERE ARE OTHER PLACES OUTSIDE

CHINA WHERE THESE MINERALS CAN BE PRODUCED AND FOUND. IT IS THAT THE WORLD HAS GROWN SO DEPENDENT ON CHINA AS THE TOP SUPPLIER BECAUSE IT CAN BE MADE SO CHEAPLY AND IN SUCH

GREAT ABUNDANCE. CAROLINE: MIKE SHEPPARD BRINGING US THE NEED TO KNOW. LET'S TALK ABOUT THE RAMIFICATIONS OF THE U.S. LIMITS ON EXPORTS TO CHINA. WE SHINED A LIGHT ON ASML, A CHIPMAKER IN EUROPE, SAYING U.S.

AUTHORITIES ARE IMPOSING RESTRICTIONS ON MANUFACTURERS THAT WILL BECOME EFFECTIVE IMMEDIATELY, BUT IT DOES NOT EXPECT LONG-TERM DEMAND TO BE IMPACTED BY THESE NEW REGULATIONS.

LET'S STICK WITH ALL THINGS CHIPS AND TAKE A LOOK AT INTEL SHARES, ONE OF THE KEY DRAGS ON THE BENCHMARKS TODAY. WE ARE OFF 4% AGAIN AFTER YESTERDAY'S SURPRISE DEPARTURE OF THE CEO, OPENING THE DOOR FOR THE COMPANY TO CONTINUE...

TO CONSIDER MORE DEAL OPTIONS, SCENARIOS HE REJECTED DURING HIS TIME RUNNING THE CHIPMAKER. FIRST, WE THINK OF M&A. PLENTY OF REPORTING AROUND WHAT COULD BE SPUN OFF AND WHO WOULD

BE BUYERS. WHAT ARE YOU THINKING ABOUT THAT BEING REIGNITED? >> INTEL HAS BEEN AT THE HEART OF DEAL TALKS. THEY HAVE LOST A LOT OF GROUND IN THE CHIP INDUSTRY TO THEIR

COMPETITORS, NOTABLY NVIDIA AND TSMC. THERE HAVE BEEN DISCUSSIONS AND DEALS. PAT GELSINGER HAD BEEN AN ADVOCATE FOR KEEPING THE COMPANY TOGETHER,

MAKING INVESTMENTS IN BIG COMPANIES AND IN PARTICULAR, HE WANTED TO MOVE INTO THE FOUNDRY BUSINESS; THAT IS, MAKING BESPOKE CHIPS FOR OTHER PLAYERS IN THE MARKET LIKE NVIDIA. THAT IS WHERE TSMC HAS EXCELLED.

HE INVESTED BILLIONS OF DOLLARS INTO THE INITIATIVE. HE WANTED TO KEEP THE MANUFACTURING AND THE PRODUCT DESIGN TOGETHER. NOW YOU CAN SEE CHANGES IN THAT ATTITUDE.

YOU CAN SEE THEM BREAKING UP THE MANUFACTURING AND DESIGN. WE KNOW QUALCOMM LOOKED AT TRYING TO BUY THE COMPANY IN THE PAST. INTEL HAS SUBSIDIARIES THAT MAY BE RIGHT FOR SPINOFFS, INCLUDING ALL TERRA.

First and foremost, the board has to find a new CEO for the company.

Caroline: And they are paying a lot to the exiting CEO.

Peter: Gelsinger is collecting his pay package on the way out.

He departed last weekend. He was not going to stick around to train the new CEO. The board took a dramatic step. They pushed out someone who had been well-respected when he

came into the company; he was expected to be the savior. Now they need to find someone else who will take the helm so they can set a strategy going forward, whether it will be

deals or doubling down on this idea: Intel can go back to its roots or establish the industry-leading manufacturing it used to have.

Caroline: Thanks so much for the latest on

Coming up, AT&T sees sustained profit growth for the next three years. We will talk with CEO John Stankey.

Caroline: AT&T trading higher as they see

sustained profit growth over the next three years, including double-digit gains. AT&T CEO John Stankey joins us now from your own-name stadium. Let's talk about 2029.

You're looking to have 50 million-plus total locations with fiber. Why the big fiber focus? John: We've had great success with what we've built thus far and

we see customers love the product. They stay with us longer, they drive better value into the business. We are having great success selling multiple products into fiber households. Four out of every 10 of our

subscribers also subscribe to our wireless service, and that is getting higher. When you think about where technology is going, future workloads will only go up. Data consumption will increase 80% over the next five years

and fiber is the one to do that. It has the symmetrical bandwidth characteristics that will facilitate AI and sending more data into a network than what comes down, which is help

when broadband networks are built. With that, it is a great investment for the long haul. Caroline: We have some breaking international news. South Korean lawmakers voted to

request lifting martial law. We will bring you up-to-the-moment news. We return to you at a U.S.-focused business you are wanting to see. The brand for -- the break --

The bandwidth and broadband you are offering. The way you are fueling investment is by doing innovative partnerships like the one with BlackRock. Do you need outside investment to commit to this

infrastructure rollout? John: We have a great portfolio of options. The primary portfolio play is owned and operated where we take 100% of the economics; we

build and operate it ourselves. We also realize we are in a constrained window. Fiber is needed now. There's not going to be a long window to do this work. Private capital markets provide

a little bit of insulation that public markets won't in order to make sure we keep our lead. We balance our portfolio and our relationship with BlackRock, and our power work

has been effective. What we have proven in the market is we can operate outside of our traditional operating territory just as effectively as we have in our home territory. I think BlackRock, as a partner,

has viewed it as being a successful investment. They've been willing to put more in, and we will expect to use that as one of the tools to grow our footprint over time to

GET PAST THAT $50 MILLION WE WERE TALKING ABOUT. CAROLINE: It is interesting you brought up AI and the demands there. Everyone's been wringing their hands over energy

infrastructure. How significant is the AI demand and the strains on what you provide? JOHN: It is an interesting issue. Power consumption will be really important moving forward. That is one of the things we

are talking about with our analysts and investors. How do we shut down our century-old copper infrastructure and all of the electronics and equipment that are power-hungry? That is one of the ways getting more of

the traffic over to fiber, which is passive and uses a lot less power, that we can help offset some of the increase of what data demand and AI will drive moving forward. We think that is a really important policy dynamic.

I think there'll be a lot of issues the country has to work through on getting the power grid to support leadership in AI. It will happen. Maybe it slows down a little

bit. What we do know is demand will be continuing to go up. CAROLINE: We are also talking to analysts and investors about how your giving money back, big returns to investors, whether through

Derivatives or buybacks. Why have you chosen that angle? John: It's a good day when you're giving more back to shareholders. We feel comfortable with our debt position we will arrive at

next year, and that is why we are making this announcement today. We did a nice job of structuring our balance sheet properly, so we have really attractive interest rates from our portfolio debt.

That is a strategic asset the way it is set up right now. Given we are largely investing organically in the business, reinvesting in our business like this and getting our

leverage structure the way it is feels comfortable to us because every year we are reinvesting the capital, reinvesting in assets we hold. When you look at the M&A work

we have done as we've restructured the business, we spun out certain non-strategic assets. We have not gone back after the equity structure and reducing the share count. When the dividend yield is

still over 5%, we have fantastic dividend coverage. This is an opportunity for us to balance that out and bring equity back in-house. Caroline: Let's talk about that change in your own portfolio.

WILL WE SEE THAT BEING INTEGRAL TO THESE FINANCIAL FORECASTS? JOHN: TODAY, AS WE SIT DOWN AND TALK WITH THE INVESTMENT COMMUNITY, WE WILL BE PROVIDING RESTATED CONSTRUCTS UNDER DIRECTV, ASSUMING WE WILL CLOSE THAT BY

THE MIDDLE OF NEXT YEAR. WE SEE GREAT IMPROVEMENTS IN OUR CASH FLOW. WE EXPECT WE WILL GROW CASH FLOW BY A BILLION DOLLARS A YEAR, EVEN WITHOUT DIRECT TV, AS WE MOVE THROUGH THIS PLANNING PROCESS.

WE SEE ACCELERATION IN OUR EBS. DIRECTV HAS BEEN GOOD AND PROVIDED US A LOT OF CASH COVERAGE. WE DID A NICE JOB OF MANAGING THE ASSET DOWN TO THIS POINT. IT IS TIME TO FOCUS ON WHAT WE WILL DO MOVING FORWARD, WHICH IS

TO BUILD A WORLD-CLASS CONNECTIVITY BUSINESS, AND IT IS THE RIGHT DECISION AT THIS POINT. CAROLINE: A LOT OF ANALYSTS ARE ECHOING THAT. WE ARE WITH JOHN STANKEY. MANY BELIEVE YOU'RE GETTING BACK TO WHAT YOU DO BEST, WHICH

IS TELECOMS. WITHIN THAT IS CLARITY GIVEN ON THE NUMBERS: $40 BILLION OF ANTICIPATED SHAREHOLDER RETURNS; $50 BILLION OF FINANCIAL CAPACITY. ARE THERE RISKS TO THESE NUMBERS? JOHN:

ANY TIME THERE IS AN ADMINISTRATION CHANGE, THERE IS DISCUSSION ON -- WE HAVE DONE JUST FINE FOR THE LAST FOUR YEARS. SOME OF THE THINGS I HEAR RIGHT NOW: TAX POLICY, POSSIBLY REINSTITUTING ACCELERATED

DEPRECIATION. THOSE THINGS COULD BE VERY GOOD FOR OUR BUSINESS. WHEN THEY WERE IN PLACE AND WERE NOT LAPSING, WE WERE INVESTING AT A HIGHER LEVEL.

I THINK IF THIS ADMINISTRATION FOLLOWS THROUGH ON WHAT THEY'D LIKE TO DO, WHICH IS TO PUT PRO-INVESTMENT POLICIES IN PLACE FOR ONE OF THE NATION'S LARGEST CAPITAL INVESTORS, THAT

WILL BE A GOOD THING FOR US. WE WATCH THAT CAREFULLY. THERE ARE OTHER POLICIES UP IN THE AIR AROUND TARIFFS AND A FEW OTHER THINGS WE'RE WONDERING WHAT MIGHT OCCUR WITH

THAT. I THINK SANE MINDS WILL PREVAIL. SOME OF WHAT WE'RE HEARING IS MAKING SURE WE NEGOTIATE FROM A

POSITION OF STRENGTH AND MAKING SURE WE RESPECT THE U.S. MARKET; THAT PEOPLE SHOULD PLAY ON A LEVEL PLAYING FIELD WHEN THEY GET ACCESS TO IT. I'M HOPING FOR GOOD ECONOMIC RETURNS AS A RESULT. CAROLINE:

RETURNS ARE UP ON YOUR SHARES. MORE BROADLY, DO YOU THINK YOU CAN SUSTAIN THIS GROWTH? JOHN: WE DO, OTHERWISE WE WOULDN'T BE GIVING THE THREE-YEAR GUIDANCE WE ARE GIVING.

WE FEEL STRONG ON THE FUNDAMENTALS. CONSUMERS NEED TO USE MORE INTERNET AND GET HIGHER-PERFORMANCE NETWORKS TO SUPPORT THAT. THAT IS THE BUSINESS WE ARE IN. WE WILL TALK ABOUT THIS AFTERNOON

WITH OUR INVESTORS ABOUT OUR ABILITY TO MANAGE THE COST STRUCTURE, WHICH WILL ULTIMATELY DROP MORE CASH TO THE BOTTOM LINE. THAT GROWTH DYNAMIC OF PEOPLE GETTING MORE EFFICIENT, PEOPLE

USING MORE OF THE PRODUCT, WE THINK THAT WILL SUSTAIN ITSELF, AND THAT IS WHY WE GAVE THE GUIDANCE WE GAVE. CAROLINE: WE SO APPRECIATE YOU COMING LIVE FROM AT&T STADIUM IN TEXAS.

JOHN STANKEY, AT&T CEO, BE WELL. LET'S TALK ABOUT A VALUATION GOING ON: $350 BILLION. THAT IS HOW MUCH SPACEX IS AIMING FOR. THE COMPANY IS AIMING TO SELL INSIDER SHARES THAT COULD MAKE

IT ELON MUSK'S COMPANY THE MOST VALUABLE STARTUP. KATIE RUTH JOINS US NOW. THIS IS SECONDARY MARKET ACTIVITY. WE WILL BE SELLING TO WHOM? KATIE: INSIDER SUCH AS EMPLOYEES AND

EXISTING VENTURE CAPITALISTS CAN SELL THEIR SHARES TO NEW INVESTORS. THE $350 BILLION VALUATION IS A HUGE JUMP. LAST MONTH THEY WERE DISCUSSING A $255 BILLION VALUATION.

The recent success of the Starship launch, and also Elon Musk's ties to Trump and Trump's win, created more investor enthusiasm. So it is now a record for the most valuable

startup in the world. Caroline: Many then say, when will they exit? When might some of the secondary shares be sold on an open market? Do you think this activity in the secondary market puts off such a liquidity event? Katie:

They would not do this if they were on the verge of an IPO, because you would not want to reduce the demand from institutional investors. So you would not do this on the eve of

an IPO. It has been reported and it is known that at some point they want to spin out Starlink, their satellite internet provider, and create a separate business with that. Starlink could go public.

Nothing imminent. Caroline: We thank you. Katie Roof in L.A. In Elon Musk's world, delivery from the Tesla Shanghai factory was down. This comes after the Chinese

government increased subsidies to entice more consumers to buy electric vehicles. Let's stick with all things Elon Musk. It has been denied again that Elon Musk's record-setting pay package

IT WAS STRUCK DOWN AGAIN BY A Delaware judge, ruling Tesla's board was improperly influenced by Elon Musk when adopting his pay package in 2018, avoiding the deal.

Elon Musk reacted to the news on X, posting "Absolute corruption." The judge said, "I do not care what your shareholders think, this is too much."  They plan on appealing again.

It seems like this is a dance we continue to keep an eye on. It was worth $56 billion at the time. Last time the judge canceled the plan, it was worth $101.5 billion.

If this does end up being upheld, if Tesla is not effectively successful in pushing back on the ruling, then the board would be back to the drawing board and have to come up with

a new proposal. Caroline: Tesla is the biggest points contributor on the downside to the Nasdaq. Maybe that is about sales in China. There was this worry that if he does not get this pay package,

China Fights Back, South Korea Declares Martial Law | Bloomberg Technology

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

Geopolitical anxieties impacting technology and markets

Political anxiety affects the tech sector.

Increased trade tensions between China and the U.S.

South Korea's declaration of martial law.

Significant impact on South Korean technology stocks (Samsung, etc.).

Sharp decline in shares traded abroad (London, Germany).

China-U.S. tit-for-tat limitations on key technology metals

China's countermeasures to U.S. chip curbs.

Restrictions on gallium and germanium imports/exports.

Impact on U.S. defense and tech industrial bases.

U.S. ability to find alternative supply sources.

World's dependence on China as a key supplier.

Intel's CEO departure and potential M&A activity

Intel shares down 4% after CEO's departure.

Potential for mergers and acquisitions (M&A).

Intel's loss of ground to competitors (Nvidia, TSMC).

Potential spin-offs of Intel subsidiaries.

AT&T's sustained profit growth and fiber expansion

AT&T predicts double-digit profit gains in 2027.

Focus on expanding fiber network to 50 million+ locations.

Increased data consumption driving fiber investment.

Innovative partnerships (e.g., with BlackRock) to fuel investment.

Addressing AI demand and strain on energy infrastructure.

SpaceX's valuation and potential secondary share sale

Factors contributing to increased investor enthusiasm.

Potential future IPO or Starlink spin-off.

Secondary market activity not expected to impede future IPO.

Significant user growth in the U.S. and internationally.

Infrastructure strain due to increased user base.

Investor interest and potential fundraising.

Perception of Bluesky as an alternative to X.

Prioritizing safety and trust over growth.