Surge admitted speculation that Roaring Kitty is back. We discussed that and so much more. Lets turn our attention to the macro picture. New headlines coming from the new york fed when it comes to Consumer Sentiment. It is still running hot, 3. 3 in terms of where consumers see inflationary pressures being in a year. Still holding onto gains,. 3 higher. Cpi on wednesday, ppi on thursday. 2year yield remaining higher. Borrowing costs remaining high. Money going in, yields go lower by two basis points. Bloomberg dollar index also down, some anxiety around inflation despite the new york fed data. Lets look at what is happening in bitcoin. Even though the dollar is up by. 1 percent, crypto is higher by 2. 3 . I know that youll focus on gamestop. This is the read across from some of that renzi, related names. What have you got on the micro . Ed gamestop. Meme stock manny is back. This is a two day chart to illustrate the point. 100 up. This is just from one social media post from Roaring Kitty, a. K. A. , keith gill, the source of all of all the original interest around gamestop. You know about the movie, what happened with reddit. Robinhood is higher. Later in the show, we will dig deep. I give you gamestop. We are looking at other stories in the chip sector. There are three clear headlines. Intel is up 3 . Close to a deal with apollo for 11 billion in financing for in ireland fab. Arm is not more than 5 . They are readying an ai product next year. Softbank will support them financially. Nvidia is higher,. 3 . It had been lower after information reported that china is instructing Domestic Companies to stop ordering chips from nvidia. We have a big segment coming up, everything chips. There are a lot of individual stories to pass through. A lot going on. Caroline a lot of discussion on china visavis the u. S. Coming from key leaders in u. S. Government. We had a great conversation with janet yellen earlier, Annmarie Hordern sitting down to discuss china in particular. She feels china is not playing by the rules on trade, going on to say that maybe we will see china escalating in the socalled tit for tat on trade. Listen to what i treasury secretary told us earlier. He believes it is unacceptable, as i do, to be completely dependent on china in these areas. He wants to make sure, given that china is really not playing by the rules in the sense that they have an enormous subsidies in critical areas of advanced manufacturing. Caroline focus on increasing tariffs at a time when there is anxiety around inflation. How does this alter the picture of your investment landscape . It is a time where investors try to navigate seeming headwinds, but an ability to keep on going for the growth of ai. How does this land, china versus the u. S. . Good morning, thanks for having me. In terms of the tech investment side, we heavily prefer the u. S. It is a hub of innovation. The regulatory pressure on china would remain. Trade tensions would hit china more than the u. S. From an investment perspective, i think all of these trade tensions it is not great for Global Growth in trade, and the global markets, uncertainty point of view but sticking with u. S. Investments seems to be the right approach. Ed exactly. There is a growing confidence that inflation pressures are using off. A big part of that is u. S. Fiscal policy. Janet yellen about how china has some anticompetitive practices. Here in the United States, if you take the chips industry, this country is also pumping billions of dollars to support its growth. How does that impact you as an investor . Janet the clear evidence is there is a lot of investment from a sovereign perspective into semiconductors, given it is such a strategic sector. The conclusion is that there is lots of money going into it, lots of investment, a lot of big players will be involved. U. S. Companies are likely to be in this initiative. We still have a positive stance on the general Semiconductor Value chain story, from equipment to production to design, manufacturing, foundries, along the whole supply chain there will still be lots of investment going into it. Valuations in these u. S. Companies are still quite reasonable given there is strong earnings growth. We still have pretty good visibility into the 2025 earnings. The investment piece that we have, invest in u. S. Tech, especially the semiconductor sector. Ed janet, do we see a rate cut from the fed this year to your mind, and if so, when, what increment . Janet difficult to say. The bar for a rate cut is higher now. We will wait for the cpi print on wednesday but i think the fed is leaning on the next move being a rate cut rather than a rally. I think there is still some preference on eventually cutting. They are interested in doing that but they need the data to allow that. Likely to happen in the fourth quarter. I think the fed can move when the data allows. There is a lot of chatter about how the fed may not be able to move because of the timing of the election, but we think the fed will focus on the data instead of trying to appear to not be political. Caroline i want to go to back to what you said about valuation looking good. Many have been holding their breath that the arm 90 times evaluation that we see we will have a deeper dive into the chips sector in a moment but from an investment landscape perspective, do you have to keep on building in the Ai Infrastructure play or do we broaden out at the moment . Janet do your point about the evaluation of arm, i cannot comment on individual companies, but within the sector there are a lot of players. There will be different ranges of valuations. Talking about it as a group because of the strong earnings growth, some of the major players, valuations are reasonable. But you have to look at the individual case. In terms of the broader theme, we have already seen that. There is more confirmation from the Cap Companies that there is commercialization of ai gaining traction. We see that from alphabet, microsoft, amazon, for example. It has brought out beyond the chip sector. I think there has been a quite significant pickup in the Utilities Sector because of the utility demand electricity demand. I think it has already started. Caroline i look at a valuation on one particular meme stock today, 3000 times future earnings is where the current price of gamestop is. Are we going to see meme stock frenzy hit us once again . Janet hard to say. Right now we are seeing a couple individual stocks having that reaction. Not sure that will last. It is a lot driven by social media. I do think the Current Situation is an indication that the risk sentiment is back. The positive settlement is not constrained anymore by these high Interest Rate environments, current level of bond yields. The market sentiment, we already passed the stage where it is totally driven by the fed, bond yields on hold. There is clearly plenty of cash waiting to be deployed. Ed risk sentiment is back, says janet mui. Great to have you on the show. Full chip coverage and a deep dive into todays big take, which is on the global battle for chip dominance. Caroline quick look at other areas that you want to be looking at, networking in particular. Cisco doing deals with nvidia earlier in the year to amplify its own ai offering. Anticipating cisco earnings after the bell. Up 1. 5 . Continuing to anticipate a Third Quarter earnings for this particular player. This is bloomberg technology. Ed lets continue our coverage of semiconductors. Todays bloomberg big take focuses on the 800 billion investments made by the u. S. And European Union door the next generation of semis. Joining us now is ian king, one of the team members that went through this. We had a case study, intel and ireland, the journal reporting there is advanced exclusive talks with apollo for 11 billion in financing. Actually, we broke they were in talks some time ago. The need for cash in a global footprint is clear through the lens of intel. Slightly different situation. Some of its rivals like tsmc and samsung need the money more than they do. They can afford to be selective. Intel, because of the situation it has put itself into over the last five years, really needs the cash from any source it can get, if it is to fulfill what it is trying to do. Caroline lets talking about fulfilling it, globally, what countries and companies are trying to do. Do we get to an extent where we have too much supply . Ian this is the concern. At the moment, the concern is focused on what is called legacy chips, the older types of production. That type of thing that intel, tsmc, samsung are building in the u. S. , there is not enough supply of that production right now. Not so much worried about that but some of the simpler kinds of stuff, in view of the amount of production being put in place in china, that is something that people are focused on, worried about. Ed ai is a big driver of this. The headline, global chip battle intensifies with the 81 billion subsidy surge. Within that there are two different stories. There is a long term capacity on shoring story and everyones kneejerk reaction to keep up with what is happening in real time. Ian everyone is focused on ai, but if we believe this is the future of computing, if we believe this is not just a step function but something quite dramatically different, then the ability to control that has enormous implications in terms of economics and security. Having that production close at hand is really important. Caroline this goes global, not to mention what is underway, arm getting more deeply into openai. We have so much to digest. Ian king, brilliant deep dive when it comes to the bloomberg big tech. Lets talk about what this means in terms of competitiveness, u. S. Versus china. President biden is not just thinking about the chip sector but more broadly about tariffs, by them on chinese evs, other Key Industries. For more, lets bring in the senior director for economy at the special competitive studies project. We were talking about the context of a frenzy of money from government to support the chip industry. Meanwhile, biden is trying to push back evs coming to china, solar coming from china. Does that have any point to it, seems more like bark right now. Good morning. Great to be on with you. This is a strong move by the Biden Administration. As you noted, reports are saying they are thinking about quadrupling the tariff rate on chinese evs. China has rocketed to become the top producer of evs and just the last few years. They struggled for a long time to build a competitive export industry and now they have gotten there with evs. Currently, u. S. Automakers are insulated by the existing trumpera tariffs which are about 25 . Clearly, the Biden Administration is concerned going forward, china could use their dumping strategy to underpriced u. S. Automakers and flood the market, as they are already doing in europe and elsewhere. Ed as you point out, sources say the ev tariff would arrive to 102. 5 . Based on what you said, i dont get it. There are four chinamade evs that retail in this country at incredibly small volumes. Polstar, the new lotus coming, and the volvo ex 30. What is the point in the tariffs if those are the four models of the only ones available, so in small numbers. Liza the Biden Administration is trying to get ahead of the flood. Right now we are insulated. American consumers are by and large not buying chinese evs, not coming into our market, but they see the writing on the wall. German automakers are under threat. Europe is importing these things. They are going into japan and elsewhere, threatening other global automakers. If the Biden Administration wants to give the ira subsidies, Inflation Reduction Act subsidies, which incentivize green production here in the u. S. , i think the administration wants to give these incentives a fighting chance so that we can retain an Auto Industry here in the United States as their role transitions to evs. Its actually a good time to raise the tariffs because it will not directly impact peoples pocketbooks. As you noted, people are not yet buying chinese evs. Caroline when you are thinking about special competitiveness in particular, the product that you focus in on, all of this is undermining ultimately the efficiency of global trade. Subsidies here, tariffs there. This intermediating the National Flow of things. Is this necessary from your perspective to ensure that u. S. Remains competitive when it comes to Key Industries . Liza there has been this National Debate of efficiency over resilience. The lessons from kobane, russias invasion of ukraine, other Global Supply chain crises we have had in the past few years, economic efficiency is not the only thing we need to think about as a nation. There have been increasing discussions of resiliency and what steps we need to take as a nation to make sure that we continue to build emerging technologies here in the United States. We have suffered from massive deindustrialization over the last several decades as we have outsourced the production of our technology to east asia, especially china. Now there is a National Conversation about looking ahead. We want to make sure we are able to build some of these emerging technologies here in the United States, not only designed them but build them. That is essential to our longterm growth in productivity as well as our national security, making sure we can make things here at home. Ed thank you very much. Coming up on the program, french president Emmanuel Macron touts billions of dollars in tech investments. Caroline meanwhile, lets focus in on what is happening for u. S. Stocks. Up 17 on squarespace. Why . It is going private. Permira, all cash transaction, the other end at around six billion dollars. This is bloomberg technology. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. You know whats brilliant . Boring. Think about it. Boring is the unsung catalyst for bold. What straps bold to a rocket and hurtles it into space . Boring does. Boring makes vacations happen, early retirements possible, and startups start up. Because its smart, dependable, and steady. All words you want from your bank. For nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled. Which is pretty unboring if you think about it. Caroline microsoft plan to spend four point 3 billion building cloud nAi Infrastructure in france. Announcing its latest major currently in technology. They hope to support 2000 startups in france by 2027. We want to stick with france, investment in france. Emmanuel macron has unveiled more than 50 billion euros in Foreign Investments from u. S. Tech giants, banks such as morgan stanley. Its all a part of trying to spur frances economy, establish paris as europes postbrexit financial hub. Joining us to discuss this is lionel. It is a bit of a pr exercise that happens every year but what ultimately is being done by macron to inject some optimism . You are right, choose france is a bit of a cheesy slogan. It could be in the cover of an investment brochure but it is not just pr. Since he has become president , its really about the art of the deal, macron style. Every year, he gathers hundreds of international ceos, lines and dines them, give them the pitch of the french economy. He has done the work of reforming france. What are you going to do for france from the corporate side, which is invest . This puts it a cut above davos because there is investment. You could argue it is expansion of existing stock, new projects, even 15 billion, is that world changing at the level of tech . I think there is something genuinely real to this. There is a seed of depth to this, not just pr. Ed mistral put france on the map a little bit in terms of the conversation around ai development. Beyond that, we dont often go to you during the program as frequently as other countries, at a time when frances economy is on a shaky footing. Lionel well, that cuts deep. Brutal. You touched on something which is about relative worth. Macron came into power when the u. K. Was effectively building itself out of european leadership with brexit, Angela MerkelsTwilight Years had begun. As long as the u. K. Is seen as a brexit economy, as long as the german model seems to be suffering, france will have a card to play. Those two cards are human capital. It still has smart, talented engineers being pumped out of its graduate schools and universities. The other thing is tax credits. There is an r d tax credit that explains why so much of what you are seeing is r d research, centers, whether it is tech or banks. There is clearly something in it for these companies, not just pr. Ed Lionel Laurent from france, we appreciate it. Stay with us. A bloomberg exclusive with the french president. That interview with Emmanuel Macron coming up at 1 00 eastern time. This is bloomberg technology. Do you want to close out . Should i . Normally id hold. But. Taking the gains is smart here, right . Feel more confident with stock ratings from j. P. Morgan analysts in the chase app. When youve got a decision to make. The answer is j. P. Morgan wealth management. You dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh ed welcome back. Caroline lets check on the markets. Were managing to hold on to the gains in the face of some inflationary pressure. The Consumer Sentiment showing thats still elevated coming from the consumer base. On a week we have c. P. I. And p. P. I. , were just c