Trump STUNS Beijing with BLUNT warning

[0:17] President Trump lands in Beijing for his first trip to China in almost 10 years. [0:22] He's meeting with Chinese President Xi Jinping for a two-day summit, and he's brought along with him [0:27] a delegation of executives representing $12 trillion in American economic might. [0:34] Welcome to The Big Money Show. I'm Brian Brenberg, along with my co-host Taylor Riggs, Jerry Willis, [0:38] Jackie DeAngelis, and with us for the hour. He's bad to the bone, but we call him Mr. Sunshine, [0:43] Rose Cliff founder and managing partner Mike Murphy. Good to see you, sir. [0:46] Happy to be here. All right. So what will it be? A massive trade reset, geopolitical dealmaking, [0:53] or another stalemate? Aisha Hosni is in Beijing with the latest. Hey there, Aisha. [1:01] Hey there. We'll find out soon enough because the president is going to get straight to work [1:05] starting tomorrow, Beijing time. The president previewed for us what he's going to be talking [1:10] with Xi about, and the first thing he says he's going to make a request is for Xi to open up [1:16] China to some of these business leaders that are coming along with him, part of this big delegation [1:22] of tech and business CEOs. He wants China to do business with them. He wants trade to be the topic [1:29] of conversation coming out of this summit, but he also says he will have a long talk with Xi about [1:36] Iran. He says he does not need China's intervention to get a deal with Iran, but he does note that it is [1:42] China that stands to benefit the most from an open Strait of Hormuz because it gets a ton of oil from [1:48] Iran. It is the biggest purchaser of the Iranian crude oil. Listen to this. I have a great relationship [1:55] with President Xi, and I think it's going to remain that way. We have a lot of things to discuss. [2:02] I wouldn't say Iran is one of them, to be honest with you, because we have Iran very much under [2:07] control. We're either going to make a deal or they're going to be decimated. So one way or the [2:12] other, we win. We're going to be talking with President Xi about a lot of different things. [2:16] I would say more than anything else will be trade. Yeah, a lot of different things. It feels like [2:23] everything under the sun is on the table. Everything from tariffs to artificial intelligence, chip [2:29] production, the status of Taiwan, beef and soybean exports. Again, there's a large delegation of tech [2:36] in business CEOs arriving here as well. According to Elon Musk, though, it was just him and the [2:41] Nvidia CEO, Jensen Wang, who were riding along with the president aboard Air Force One. The president [2:47] truth socially aboard Air Force Month a couple of hours ago, he said, I will be asking President Xi, [2:54] a leader of extraordinary distinction, to open up China so that these brilliant people can work [2:59] their magic and help bring the People's Republic to an even higher level. Now, he won't see the [3:05] president anymore tonight, Beijing time. He's at his hotel for the night. We will see him early [3:11] tomorrow when he heads to the Great Hall, and that is where he is going to be received by the [3:17] president of China, Xi. Back to you. All right, Aisha, we will watch all of it. Thank you very much. [3:22] Okay, Murph, what do you want to see? Big trip, Wong on the plane, Musk on the plane, Trump, the other guys, [3:29] I guess, had to find their own ride. Commercial. That's right, commercial. Coach. So what I love about this, [3:35] just from the jump here, is that President Trump is handling his own messaging. So he's setting the [3:41] stage for who he's with, who he's bringing, why he's bringing them, and what he plans to speak to [3:46] President Xi about. He's not going to let the media or anyone else set the stage for what's going [3:53] to happen. He's telling us. So what do we come away from this with? Clearly, both men have to come [3:58] out on top. The two most powerful men in the world. Neither one's going to give in, necessarily. [4:04] But I think President Trump's plan to have an open China is a win, yes, for China, but a bigger win [4:10] for the United States and the rest of the world. If you had more of a democracy, more capitalism in [4:15] China, how does that help our economy? So I think there's a lot of upside here. And if he just plays [4:22] it the way he's set it out, I think it's going to be a win. Okay, open China. I have some skepticism, [4:28] Taylor, about China's willingness to open. Nice goal. Yeah. I don't know that they want to do that, [4:34] but I do think they would love to have NVIDIA chips, and not the second-rate ones, the first-rate ones. [4:41] Do you think that's a big chip on the table in these negotiations? Yeah, chips are part of the chip [4:47] negotiating table. I do like that. A comment I heard this morning, maybe we give them not the [4:56] latest and greatest chips, but just like six months behind or a year behind. We talked to Daniel Newman [5:02] yesterday, and I like that he was saying that we originally thought that chips depreciated in six [5:07] months, and we're actually still using chips from six years ago. So if you give them chips from six [5:13] months or a year ago, that may not be a bad thing. NVIDIA gets to benefit from it in the meantime, [5:19] but they don't get the latest and greatest. And guess what? Yes, they'll reverse engineer, [5:23] but we're always going to be a step ahead because we have, and I'll check your math on this, by my [5:30] estimates, 14.7 trillion in market cap going over there, given the hefty weight of our CEOs. With that [5:37] brainpower, I guess I'm not worried about us only having the latest and greatest in China, only having [5:43] maybe a version or two behind because we will always outmover. We will always outsmart because [5:47] we have the brainpower. When China mints a billionaire, that billionaire disappears. Do [5:53] we remember that story? And everyone's like, where did he go? Because Xi Jinping doesn't like [5:57] billionaires. We embrace, for the most part, we embrace ours, unless I'm in California or a blue state, [6:05] but we embrace them. And so I'm just so confident that we will always outmover. I'm going to be looking [6:10] at what I'm going to call the Beijing basket. That's going to be the traded market cap of chips, [6:17] perhaps, of goods that are over there, given by those CEOs. If any deals are being cut with [6:23] those companies, let's watch that as the Beijing basket and the new goods that will be sold. [6:28] Jackie, a lot of pomp and circumstance, clearly, we saw when we broke in there, the cheering for the [6:34] president. I wonder what you think about that. Well, we've seen these visits before, and Trump [6:40] likes to make them big, and Xi Jinping knows that he likes to make them big, so he made it big, [6:47] and you could see the president walking off Air Force One with a smile on his face, [6:51] entourage in tow, a couple of big CEOs with him, many more on the way, his power flex, as we called it [6:58] yesterday, so it was kind of the perfect welcome. What was interesting to me is those kids that were [7:03] all standing there, and they were chanting, welcome to the president. They had flags. They [7:07] had a communist China flag, and they had an American flag, and they were waving them, [7:12] and they were waving them, and I'm thinking to myself, those two symbols are so inherently antagonistic. [7:20] Communism and capitalism are ideological opposites, so I appreciate what the president is trying to do, [7:27] and I think that he will get something out of this visit. He never gets, you know, a total turnover, [7:33] but small wins are important here in the trade game with China, and I think he will accomplish that [7:39] in this visit, but when you think about this, it's wild to me, because, like, think about the [7:44] Middle East and the Iranians using nuclear weapons and terrorism as their control tactic. They're not [7:50] giving that up without a huge fight. Well, apply that concept to communist China. President [7:57] Xi's control comes in this form of communism, and he is not going to give that up, open up any free [8:04] market or whatever. He's going to try to get what he can from the United States, maybe give something, [8:10] which is why I think he's been holding back on the agriculture side. That might be what he gives, [8:14] because, actually, he owed that to us from, like, almost six years ago now, and they do small trade-offs [8:21] like that, but, you know, ulterior motives in that welcome read between the sides, people. [8:28] Jerry, you like to put things in historical context, which I always appreciate. I will just add, [8:33] I think it's, I was maybe a little surprised to hear how much President Trump downplayed Iran [8:39] as an issue that he wants to hash out with Xi Jinping. What do you think? [8:45] Well, I think there are expectations out there that maybe, maybe, maybe China could help us with Iran, [8:51] right? Because China relies on Iran for oil, as we know, it's critically important, but I want to go in [8:57] the way-back machine, the way-back machine to China in 1997, Asian financial crisis. I think [9:05] nobody on this panel, possibly, with the exception of Mike, was working in the industry at the time. [9:10] Were you? Yeah. Wow, you've aged well. [9:15] What about Murphy? I said Murphy. He hasn't aged well. Yeah, yeah. [9:20] He's 85 years old. He looks pretty good. Thank you. [9:23] You've already slagged him twice. Twice. Thank you for keeping count. [9:26] At any rate, what I wanted to say here is that the Asian financial crisis, we came in and saved the [9:32] world's bacon. I know Jackie remembers that. Time magazine running this famous picture of, you know, [9:39] Robert Rubin, the Treasury Secretary Larry Summers, his assistants, and Alan Greenspan on the cover. [9:45] The committee to save the world. We organized the rescue of Asia at the time from financial crisis [9:51] that threatened to swallow the entire globe. Do you think China would do the same thing if it were up to [9:57] them? I'm not sure. And I'm not sure that they would help us with Iran, which could fix the problem [10:04] if China climbed on board with us. Look, I think when it comes to China, we are relentlessly naïve about [10:10] the possibilities. You know, China is China first, always. [10:15] Do you think President Trump is relentlessly naïve on that one? Or do you think, are you saying more like [10:19] the broader political landscape? When I talk to academics, academics were saying for decades, [10:26] we've got to help China. China's in trouble. They're having issues. You know, no, they're not having [10:31] trouble. They're making their way for sure. And I think we need to be sure what we want out of [10:37] these negotiations and go for it. I just say, don't be naïve. We know where we've been before with [10:42] China. They are running the world's pharmacy production, especially when it comes to generics. [10:49] We know how this works. Don't be naïve. Speaking of lots of big names who are going to China, [10:55] I don't think this is one of them, but you're looking at Oracle. I am. And you are correct. [11:01] Not one of them. But I'm desperate for your thoughts on this. Wedbush goes from a $2.25 to a $2.75 [11:07] price target on Oracle. Mike Murphy, this is what Wedbush has to say. The market is incorrectly [11:13] penalizing the stock for their massive CapEx spend. The market is too focused on the near-term cash [11:20] issues instead of recognizing some of the highly visible contract-based AI demand that is driving [11:28] the build-out of which Oracle is involved. Agree or disagree? Agree 100%. Really? Yes. Oracle came [11:37] out with great earnings about two quarters ago. And the stock had a huge rally. It put Larry Ellison [11:41] as the richest man on earth for about a day. And then the private credit crisis kind of hit. And then [11:49] there was a lot of discussions around whether or not Oracle would be solvent, whether they could [11:53] pay their debt. And the stock came down into the low 100s. Where it's trading right now, 188. [11:59] They have demand for their products. They're going to service their debt. So market cap here is still [12:05] under 600 billion. So there's a lot of room for Oracle to grow here, to continue to move higher [12:11] because they have this contracted revenue out there. So I think once you fully get the concerns around [12:17] their debt off the table, the stocks are going to be a lot higher than 188. Demand is better than [12:22] debt is bad. I think that's what you're saying here. Yes. Okay. We'll go with it.