WEBVTT - Nvidia Eases China Concerns With Upbeat Forecast

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Doug Prisner. Let's

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<v Speaker 2>begin with tariffs. Late in the day in the States,

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<v Speaker 2>we had the US Trade Court dealing a major blow

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<v Speaker 2>to the Trump administration. It found the president's global tariffs

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<v Speaker 2>illegal and as a result, the court has blocked these levees. Now,

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<v Speaker 2>this ruling, to be fair, can be appealed by the

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<v Speaker 2>Trump administration in federal court. Today, a panel of three

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<v Speaker 2>judges at the US Court of International Trade in Manhattan

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<v Speaker 2>sided with Democratic led States and a group of small businesses.

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<v Speaker 2>They successfully argued that the Trump administration had wrongfully invoked

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<v Speaker 2>an emergency law to justify these levies. We'll see where

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<v Speaker 2>we go from here. Let's move on to the most

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<v Speaker 2>important earnings report of the week. After the bell, we

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<v Speaker 2>heard from Nvidia, and the company reported data center revenue

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<v Speaker 2>for the latest quarter close to estimates. Perhaps more importantly,

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<v Speaker 2>the chip maker gave a solid forecast for revenue in

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<v Speaker 2>the current quarter despite a slow down in China, and

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<v Speaker 2>Vidia is now expecting sales overall of about forty five

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<v Speaker 2>billion dollars. That's after subtracting eight billion in lost Chinese

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<v Speaker 2>sales because of those export controls. We heard earlier from

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<v Speaker 2>Nvidia CEO Jensen Wong speaking on the impact of those

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<v Speaker 2>export controls.

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<v Speaker 3>The limitations are quite quite stringent, quite limited, if you will.

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<v Speaker 3>H twenty is you know, as far down as we

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<v Speaker 3>could take a hopper. We don't know how to make

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<v Speaker 3>it even less, and so that's really the limit.

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<v Speaker 4>But there aren't there aren't.

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<v Speaker 3>You know, The limitations are quite stringent, so we have

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<v Speaker 3>we have to really think through it. Whatever we make

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<v Speaker 3>ultimately has to add value to the market.

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<v Speaker 2>Jensen Wong. They're the CEO of Nvidia. By the way,

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<v Speaker 2>you can watch the full conversation with Wog on the

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<v Speaker 2>Bloomberg podcast channel. It's on YouTube, shares and invidio. We're

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<v Speaker 2>up nearly five percent in late New York trading. Let's

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<v Speaker 2>take a closer look at the story on in video

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<v Speaker 2>with Daniel Newman. He is the CEO of Futurum Group. Daniel,

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<v Speaker 2>thank you for making time to chat with me on this.

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<v Speaker 2>What did we really see today that kind of can

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<v Speaker 2>move the market in one way or another when it

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<v Speaker 2>comes to in video.

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<v Speaker 1>The overall reaction to the Nvidia print was very positive.

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<v Speaker 1>Having said that the China woes are still not solved.

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<v Speaker 1>In In fact, if anything, Wong gave further doubt and

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<v Speaker 1>uncertainty to whether or not the company can really even

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<v Speaker 1>participate in that market. But having said that, even with

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<v Speaker 1>the multiple billions they couldn't ship this quarter, the write

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<v Speaker 1>down which ended up being just a little bit less

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<v Speaker 1>dug than what was expected, and the future sales, the

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<v Speaker 1>guide and the result this quarter showed that there is

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<v Speaker 1>a lot of positive momentum that must be taking place

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<v Speaker 1>outside of the region. And one of the really important

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<v Speaker 1>point is over the last several quarters, you've heard Long

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<v Speaker 1>pivot his conversations towards new markets like physical AI, robotics,

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<v Speaker 1>but also he's returned to talking about some of the

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<v Speaker 1>core business markets segments like gaming and automotive, and those

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<v Speaker 1>segments really outperformed, showing some really strong results, which I

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<v Speaker 1>think is important at this particular time, as I think

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<v Speaker 1>there's a little bit of fatigue on the data center

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<v Speaker 1>conversation and despite we're so early in AI, after eight

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<v Speaker 1>or nine continuous quarters of big in Vidia results in

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<v Speaker 1>this sort of Nvidia event each quarter, people want to

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<v Speaker 1>know how in Vidia is going to keep their growth,

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<v Speaker 1>and he showed it's not just data center and China

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<v Speaker 1>alone can't stop its momentum.

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<v Speaker 2>Yes, the China market is no doubt very important for Invidio.

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<v Speaker 2>I found it interesting today that the Trump administration said

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<v Speaker 2>it will restrict the sale of chip design software to China.

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<v Speaker 2>This comes to the issue of whether or not a

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<v Speaker 2>company like Quahweh, for example, can develop AI chips that

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<v Speaker 2>could someday compete with those of Nvidia. Do you think

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<v Speaker 2>that's a big stretch.

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<v Speaker 1>So we did hear about new rulings that could limit

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<v Speaker 1>the EDA software, some of the design tools, as you suggested,

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<v Speaker 1>and companies like Synopsis, which actually reported the same day

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<v Speaker 1>here as in Nvidia, took a big hit here. I

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<v Speaker 1>think there is a major chip being played unintended when

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<v Speaker 1>it comes to Nvidia and its ability to access the

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<v Speaker 1>Chinese market. And I think there is a bit of

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<v Speaker 1>give and take.

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<v Speaker 4>Now.

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<v Speaker 1>Wong is doing all the right things of the statesmen,

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<v Speaker 1>of the representative of A shareholders, and in Vidia wanting

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<v Speaker 1>to access this market that is a tam of fifty

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<v Speaker 1>billion plus dollars and holds half the world's AI researchers

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<v Speaker 1>in it. The US is playing a slightly different game.

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<v Speaker 1>We heard today about the possible blockade of certain terrorists.

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<v Speaker 1>But the Trump administration does understand that winning the AI race,

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<v Speaker 1>diffusing the Western and US based technology to everywhere in

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<v Speaker 1>the world is to its advantage. But the question is

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<v Speaker 1>does enable China. Does giving China access to any of

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<v Speaker 1>Nvidia's leading data center chips or even some of the

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<v Speaker 1>older ones like the Hopper chips they especially designed for China,

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<v Speaker 1>does that actually slow China down? And this is where

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<v Speaker 1>I don't entirely agree with Wong saying if we don't

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<v Speaker 1>give them these chips, China will go faster and build

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<v Speaker 1>I think Jijingping in the Chinese Party understands the importance

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<v Speaker 1>of leading an AI. It understands that it wants to

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<v Speaker 1>win because there are multiple decades of global economic leadership

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<v Speaker 1>at stake here. I think China's going as fast as

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<v Speaker 1>it can anyways. I think it's behind, but given its

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<v Speaker 1>ability to build energy and given its ability to brute

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<v Speaker 1>force through processes like they've done with Huawei as send,

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<v Speaker 1>I think it's a big mistake to rule them out.

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<v Speaker 1>So it puts a very tough juxtaposition for the Trump administration,

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<v Speaker 1>but it's also tough for in Vidia shareholders to lose

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<v Speaker 1>out on that market.

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<v Speaker 2>So what about the adoption of AI technology by an

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<v Speaker 2>American company? And I'm going to use Salesforce as an

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<v Speaker 2>example because after the bell, Salesforce raised its gods for

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<v Speaker 2>revenue on the full year, and that's probably a good

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<v Speaker 2>indication that the company's latest AI product, known as agent Force,

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<v Speaker 2>is on a path to contribute significantly to increased sales.

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<v Speaker 2>Is this something we should see more of companies like

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<v Speaker 2>Salesforce adopting AI and beginning to realize the return on investment.

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<v Speaker 1>This is what we want to see as we've watched

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<v Speaker 1>this massive infrastructure build out and the arms race that

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<v Speaker 1>is building data centers everywhere in the world, empowering them

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<v Speaker 1>with these and most advanced chips. The second part and

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<v Speaker 1>where the sort of bubble crowd when it comes to

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<v Speaker 1>AI comes into places. They're like, Yeah, all these hyperscalers

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<v Speaker 1>are putting billions and billions of dollars into capex to build,

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<v Speaker 1>But who's using this stuff? So companies like Salesforce, like

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<v Speaker 1>service Now, like Workday, these applications company the ones that

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<v Speaker 1>are powering businesses, Oracle and SAP seeing their AI offerings

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<v Speaker 1>which aren't brand new per se, but have not necessarily

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<v Speaker 1>contributed to earnings numbers as materially as investors would like

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<v Speaker 1>to see. So if Microsoft spending eighty billion or Google

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<v Speaker 1>spending seventy billion on capex, and then they're saying, hey,

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<v Speaker 1>we've got a couple billion dollars of revenue from all

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<v Speaker 1>of this, investment investors, well, they're still optimistic because you've

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<v Speaker 1>seen it in the stock price. They're still kind of

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<v Speaker 1>taking pause. Now, these applications, companies rolling out, these agents.

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<v Speaker 1>These are the consumption layer, and this is the utilization

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<v Speaker 1>of all this compute processing that's being built, these tokens,

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<v Speaker 1>these agents, these applications. So seeing Salesforce's result today, seeing

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<v Speaker 1>it mention about sixty percent of its deals have meaningful AI,

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<v Speaker 1>seeing it stay it wants to hire two thousand sales

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<v Speaker 1>reps to sell more of it. A bit ironic but

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<v Speaker 1>yet interesting because you'd think maybe the agents could do

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<v Speaker 1>the work. But I think that's all part of the

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<v Speaker 1>process of getting us to this larger, more meaningful consumption

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<v Speaker 1>that will prove to the market that this isn't a bubble,

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<v Speaker 1>which I don't think it is.

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<v Speaker 2>So it comes down to winners and losers. I can

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<v Speaker 2>throw out names like Alphabet, like Microsoft, like Amazon. Even

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<v Speaker 2>are you placing bets on companies that you think have

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<v Speaker 2>a competitive advantage as the result of adopting AI right now?

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<v Speaker 1>Well, first of all, the operating leverage of those hyperscaler

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<v Speaker 1>and cloud companies and they're so much more right the Amazon,

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<v Speaker 1>Microsoft and Google does provide them a huge advantage. Really,

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<v Speaker 1>the only companies that are outside of those scale of

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<v Speaker 1>the scale of those companies are the likes of an

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<v Speaker 1>open Ai, which has so much funding behind it that

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<v Speaker 1>it's able to go make six and a half billion

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<v Speaker 1>dollar acquisitions of Jony Ives's company, and it's able to

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<v Speaker 1>kind of lose billions of dollars a quarter to build

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<v Speaker 1>out something that people will buy, consume, and utilize. I

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<v Speaker 1>think the metric to watch is, look, we're going to

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<v Speaker 1>build this infrastructure future out. It's a race with China.

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<v Speaker 1>We are going to try to advance power, which, by

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<v Speaker 1>the way, that power is a huge advantage to China

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<v Speaker 1>and the US. Trying to deregulate some of what it's

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<v Speaker 1>doing in nuclear, for instance, is going to be important,

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<v Speaker 1>but it could take years to build up any sort

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<v Speaker 1>of nuclear infrastructre sure, But in the end, it is

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<v Speaker 1>going to be those applications, the ones that unlock the

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<v Speaker 1>mass amounts of data. IBM CEO has told me the

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<v Speaker 1>last time I spoke to, ninety nine percent of enterprise

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<v Speaker 1>data has not yet touched AI. So while we've seen

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<v Speaker 1>the entire Internet be scraped over the last couple of

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<v Speaker 1>years to be utilized for these large language models like

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<v Speaker 1>chat GPT, the enterprise has actually moved quite slow. Is

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<v Speaker 1>in the earliest phase of adoption, and until businesses are

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<v Speaker 1>really putting that AI to work at scale, we are

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<v Speaker 1>necessarily going to completely provide confidence to the market that

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<v Speaker 1>this AI transformation from infrastructure build out the basically the

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<v Speaker 1>roads and the pathways, turns into businesses making money and

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<v Speaker 1>making more efficient business decisions because of it. But that

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<v Speaker 1>is where we are heading.

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<v Speaker 2>Last question before I let you go, Daniel, you mentioned

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<v Speaker 2>Johnny Ive and the deal he has with open Ai.

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<v Speaker 2>Know now we know I've to be the designer for

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<v Speaker 2>many of Apple's device Is the iPhone being one? Do

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<v Speaker 2>you think the fact that I've is now partnering with

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<v Speaker 2>open ai Sam Altman to come up with some hardware

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<v Speaker 2>device that will essentially be designed for artificial intelligence, does

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<v Speaker 2>that represent a wake up call for Apple.

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<v Speaker 1>Apple has been shocking with its implementation of AI. I

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<v Speaker 1>gave them the grace of several quarters with Apple Intelligence

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<v Speaker 1>to say Apple can get there. And here's the crazy thing, Doug,

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<v Speaker 1>is that Apple has such a committed and dedicated user

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<v Speaker 1>base that I think it can actually continue to fumble

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<v Speaker 1>and still be successful. Having said that, there does seem

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<v Speaker 1>to be an inroads right now. You see what Google

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<v Speaker 1>did at its recent IOW event in terms of some

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<v Speaker 1>of the next generation technology that it's launching. Google of

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<v Speaker 1>course has Android. They're building technologies right into devices and

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<v Speaker 1>into the cloud. We'll see what Microsoft is developing. Apple seems,

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<v Speaker 1>for whatever reason, to be so focused on supply chain,

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<v Speaker 1>and of course the administrations put a lot of pressure there.

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<v Speaker 1>But this isn't a new symptom for the company. This

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<v Speaker 1>has been several quarters in a row. Underperforming, doesn't have

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<v Speaker 1>an answer for large language models, hasn't had an answer

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<v Speaker 1>for really the on device opportunity. I think that Apple.

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<v Speaker 4>Is a little bit at risk.

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<v Speaker 1>I also think Sam Altman's ambitions sometimes scale far beyond

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<v Speaker 1>He was going to build seven trillion dollars worth of infrastructure.

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<v Speaker 1>He's going to replace social media networks, and he's also

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<v Speaker 1>going to take out Google. I think he's got he's

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<v Speaker 1>got big ideas. So far, he's executed one of them,

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<v Speaker 1>which is the generative AI movement becoming and chat GPT

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<v Speaker 1>becoming the Kleenex of large language models. But I also

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<v Speaker 1>think trying to get into hardware at scale is going

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<v Speaker 1>to prove to be a very different challenge. I'm very

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<v Speaker 1>conflicted as to whether that was a good use of

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<v Speaker 1>six and a half billion dollars when the company's already

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<v Speaker 1>burning cash.

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<v Speaker 2>Daniel will leave it there. It's always your pleasure. Thank

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<v Speaker 2>you so much. Daniel Newman there. He is the CEO

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<v Speaker 2>at the Futurum Group. Joining us here on the Daybreak

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<v Speaker 2>Asia podcast. Welcome back to the Daybreak Asia Podcast. I'm

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<v Speaker 2>dok Chrisner. The equity market in the US drifted lower

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<v Speaker 2>in front of the results from Nvidia. We had the

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<v Speaker 2>S and P down about six tens of one percent.

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<v Speaker 2>That after that two percent rally on Tuesday. Joining me

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<v Speaker 2>now for a closer look at market action is Tim Pagliara.

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<v Speaker 2>He is the chairman also the chief investment officer at

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<v Speaker 2>cap Wealth. Tim is on the line from Franklin Tennessee. Tim,

0:12:30.280 --> 0:12:32.280
<v Speaker 2>It's always a pleasure to chat with you. There are

0:12:32.280 --> 0:12:34.280
<v Speaker 2>so many things that we could talk about. We could

0:12:34.360 --> 0:12:37.160
<v Speaker 2>begin with a story on the Nvidia earnings. We could

0:12:37.200 --> 0:12:41.160
<v Speaker 2>talk about US fiscal policy and what we're hearing from

0:12:41.200 --> 0:12:44.120
<v Speaker 2>the Fed. I'm curious as to where you are focused

0:12:44.160 --> 0:12:44.640
<v Speaker 2>right now.

0:12:45.120 --> 0:12:47.839
<v Speaker 5>I mean sped policy and as a wait and see

0:12:48.600 --> 0:12:52.440
<v Speaker 5>approach right now, and the most significant thing for all

0:12:52.480 --> 0:12:55.640
<v Speaker 5>of us to watch in the markets is whether the

0:12:55.720 --> 0:12:59.960
<v Speaker 5>bond market is going to impose the discipline that cast

0:13:00.160 --> 0:13:06.280
<v Speaker 5>risk cannot impose through spending cuts and getting the budget

0:13:06.360 --> 0:13:10.680
<v Speaker 5>under control. So as the final details of this budget

0:13:10.840 --> 0:13:15.560
<v Speaker 5>emerge and it's reconciled with the Senate, then you're going

0:13:15.600 --> 0:13:16.560
<v Speaker 5>to see whether or.

0:13:16.559 --> 0:13:20.360
<v Speaker 4>Not rates go higher or they go lower.

0:13:20.480 --> 0:13:26.600
<v Speaker 5>If the perception is that we've made significant progress, for example,

0:13:27.559 --> 0:13:33.600
<v Speaker 5>debt annual GDP spending goes from seven percent maybe to

0:13:33.720 --> 0:13:37.559
<v Speaker 5>five percent, and the market thinks that that's significant, given

0:13:37.600 --> 0:13:41.280
<v Speaker 5>the fact that we have made permanent tax cuts and

0:13:41.320 --> 0:13:46.840
<v Speaker 5>we've increased a number of worthy things for working class

0:13:46.880 --> 0:13:51.120
<v Speaker 5>people and everything from tax credits for seniors, to increase

0:13:51.720 --> 0:13:56.559
<v Speaker 5>child tax credits for families, increase in the standard deduction.

0:13:57.080 --> 0:14:02.680
<v Speaker 5>If that whole package satisfies the financial market, specifically the

0:14:02.720 --> 0:14:07.040
<v Speaker 5>bond market. Then I think the Trump administration has had

0:14:07.080 --> 0:14:08.680
<v Speaker 5>a big victory so far this year.

0:14:08.880 --> 0:14:11.400
<v Speaker 2>So we're looking at a tenure that's under four point

0:14:11.400 --> 0:14:14.839
<v Speaker 2>fifty right now in the New York session on Wednesday,

0:14:15.600 --> 0:14:18.360
<v Speaker 2>Are you prepared to say that rates are going to

0:14:18.360 --> 0:14:21.360
<v Speaker 2>get closer to four percent than they are five percent

0:14:21.400 --> 0:14:22.000
<v Speaker 2>on the tenure?

0:14:22.560 --> 0:14:25.800
<v Speaker 5>Now? My belief is, again the victory is if they

0:14:25.880 --> 0:14:30.080
<v Speaker 5>stabilize where they are right now. It just all depends

0:14:30.240 --> 0:14:34.320
<v Speaker 5>on the perception and the details that come from the

0:14:34.360 --> 0:14:39.360
<v Speaker 5>reconciliation of what the House is proposed and what the Senate.

0:14:39.120 --> 0:14:41.520
<v Speaker 4>Will how it will be adjusted.

0:14:41.640 --> 0:14:45.920
<v Speaker 5>So you could see the ten year ago to five percent,

0:14:46.080 --> 0:14:48.960
<v Speaker 5>I don't think you see it go going much below,

0:14:49.040 --> 0:14:50.040
<v Speaker 5>say four and a quarter.

0:14:50.720 --> 0:14:54.200
<v Speaker 2>Okay, we had the Nvidia earnings after the bill, and

0:14:54.320 --> 0:14:56.960
<v Speaker 2>guidance I think was critical for the market. So a

0:14:57.000 --> 0:15:00.040
<v Speaker 2>solid forecast from what we can tell, revenue for the

0:15:00.080 --> 0:15:04.640
<v Speaker 2>current quarter will be around forty five billion, and amazingly,

0:15:04.760 --> 0:15:08.280
<v Speaker 2>that's after subtracting eight billion in lost Chinese sales because

0:15:08.280 --> 0:15:11.560
<v Speaker 2>of those export controls. Have you been a buyer of

0:15:11.600 --> 0:15:15.680
<v Speaker 2>the AI trade, particularly through names in the chip space

0:15:16.280 --> 0:15:17.320
<v Speaker 2>like in Nvidia.

0:15:18.360 --> 0:15:22.720
<v Speaker 5>We've got a more expansive view of the AI trade.

0:15:22.760 --> 0:15:28.680
<v Speaker 5>For example, we believe it's the applications that come from

0:15:29.280 --> 0:15:33.400
<v Speaker 5>Navidia chips in AI. So we've been long term holders

0:15:33.400 --> 0:15:36.800
<v Speaker 5>of Palenteer. Two years ago we made the decision to

0:15:36.880 --> 0:15:41.800
<v Speaker 5>buy Palenteer instead of Navidia. We've also really beefed up

0:15:42.080 --> 0:15:47.120
<v Speaker 5>our holdings in electric utilities. You know, the AI revolution

0:15:47.320 --> 0:15:50.280
<v Speaker 5>is going to cause the country to have to double

0:15:50.360 --> 0:15:54.800
<v Speaker 5>electricity output, you know, over the next ten years, and

0:15:55.240 --> 0:15:59.560
<v Speaker 5>so we picked up Constellation Energy back during that real

0:15:59.640 --> 0:16:03.760
<v Speaker 5>chio period in April at.

0:16:03.640 --> 0:16:05.360
<v Speaker 4>You know, one hundred and eighty five dollars a share.

0:16:05.440 --> 0:16:07.200
<v Speaker 4>Now it's over three hundred and five dollars.

0:16:07.280 --> 0:16:11.480
<v Speaker 5>So these these things they kind of flash, the markets

0:16:11.480 --> 0:16:14.120
<v Speaker 5>settle down, and you have to be very nimble, and

0:16:14.160 --> 0:16:16.800
<v Speaker 5>you have to have a by list of things that

0:16:16.840 --> 0:16:23.640
<v Speaker 5>you find attractive that really make up the whole AI trade.

0:16:23.680 --> 0:16:29.840
<v Speaker 5>So it's electricity, it's data centers. Another big one is lumen.

0:16:30.080 --> 0:16:35.720
<v Speaker 5>There's a cover story and Fortune this week about Kate

0:16:35.840 --> 0:16:40.880
<v Speaker 5>Johnson and how she's leading the AI revolution through the

0:16:40.920 --> 0:16:45.200
<v Speaker 5>technology infrastructure that has to be created between data centers.

0:16:45.880 --> 0:16:49.360
<v Speaker 5>You know, Oracle, for example, has entered into a partnership

0:16:49.400 --> 0:16:52.840
<v Speaker 5>with Lumen. They have one hundred data centers right now,

0:16:52.880 --> 0:16:57.760
<v Speaker 5>either under construction or operational, and the infrastructure of transferring

0:16:57.880 --> 0:17:02.120
<v Speaker 5>data between those centers to increase somatically, and Lumen's right

0:17:02.160 --> 0:17:04.560
<v Speaker 5>in the middle of that. They also have agreements with

0:17:04.640 --> 0:17:09.440
<v Speaker 5>IBM and Google, and a big agreement that they entered

0:17:09.480 --> 0:17:10.520
<v Speaker 5>into with Microsoft.

0:17:10.680 --> 0:17:14.600
<v Speaker 4>So you know, it's not it's not the chip.

0:17:15.160 --> 0:17:19.760
<v Speaker 5>The chip's important, but it's the applications of that chip

0:17:19.840 --> 0:17:22.320
<v Speaker 5>in commerce and how it's going to change everybody's lives.

0:17:22.359 --> 0:17:24.520
<v Speaker 2>I'm just wondering whether or not some of the tension

0:17:24.560 --> 0:17:27.359
<v Speaker 2>between the US and China has the potential to pretty

0:17:27.440 --> 0:17:32.080
<v Speaker 2>dramatically hold back revenue growth for some big American tech players.

0:17:32.440 --> 0:17:35.720
<v Speaker 2>Tonight we learned that the Trump administration will restrict sales

0:17:35.800 --> 0:17:39.120
<v Speaker 2>of chip design software to China. We're told the Commerce

0:17:39.160 --> 0:17:42.720
<v Speaker 2>Department has been sending letters to some leading providers of

0:17:43.240 --> 0:17:48.080
<v Speaker 2>electronic design automation. And when you look at this this tension.

0:17:48.160 --> 0:17:51.040
<v Speaker 2>We talked about the Nvidia story and the export controls

0:17:51.080 --> 0:17:54.080
<v Speaker 2>and the degree to which even Jensen Wong, the CEO

0:17:54.160 --> 0:17:56.240
<v Speaker 2>of Nvidia, was saying this is going to be a

0:17:56.320 --> 0:17:58.600
<v Speaker 2>hindrance to our growth, the fact that we have these

0:17:58.680 --> 0:18:03.080
<v Speaker 2>export controls where the Chinese market is concerned. Broadly speaking,

0:18:03.119 --> 0:18:06.000
<v Speaker 2>do you think that some of this trade policy has

0:18:06.040 --> 0:18:09.320
<v Speaker 2>the potential to restrain growth for American tech firms.

0:18:10.040 --> 0:18:12.600
<v Speaker 5>Yes, but I think in the near term, you know,

0:18:12.680 --> 0:18:16.040
<v Speaker 5>it's a national security issue. That's why you you know,

0:18:16.119 --> 0:18:18.880
<v Speaker 5>saw Trump, I believe in the Middle East and Jensen

0:18:19.480 --> 0:18:22.920
<v Speaker 5>Wong was shoulder to shoulder with the President, and they're

0:18:22.960 --> 0:18:28.679
<v Speaker 5>attempting to give them additional outlets through kind of a

0:18:28.760 --> 0:18:32.600
<v Speaker 5>Most Favored Nation status that they have imparted into the

0:18:32.640 --> 0:18:36.679
<v Speaker 5>Middle East, you know, for AI development and anything that

0:18:36.800 --> 0:18:45.159
<v Speaker 5>decentralizes the Chinese influence in artificial intelligence and moves it

0:18:45.200 --> 0:18:48.760
<v Speaker 5>towards our partners, for example in India. And like I said,

0:18:48.840 --> 0:18:53.600
<v Speaker 5>the Middle East should benefit companies like Navidia, and they'll

0:18:53.600 --> 0:18:56.800
<v Speaker 5>be able to pick up the slack. You know, it's

0:18:57.880 --> 0:19:00.000
<v Speaker 5>not a good place for them to be doing business

0:19:00.119 --> 0:19:03.159
<v Speaker 5>in the first place. They'll you know, they're notorious for

0:19:03.240 --> 0:19:08.600
<v Speaker 5>stealing their you know, proprietary technology, all of that, and

0:19:08.680 --> 0:19:12.160
<v Speaker 5>so I think in the long run it'll have no impact.

0:19:12.160 --> 0:19:15.879
<v Speaker 2>Short run, yes, so technology is obviously one part of

0:19:15.920 --> 0:19:19.359
<v Speaker 2>the trade story. It's kind of interesting today that Wilburgh Ross,

0:19:19.600 --> 0:19:22.520
<v Speaker 2>who of course, as we know, was Commerce Secretary during

0:19:22.560 --> 0:19:25.760
<v Speaker 2>the first Trump administration, was saying that he expects the

0:19:25.800 --> 0:19:29.159
<v Speaker 2>equity market in the US to sour by the end

0:19:29.200 --> 0:19:32.240
<v Speaker 2>of late June if there is not progress on trade talks.

0:19:32.280 --> 0:19:35.719
<v Speaker 2>That's a pretty tight timeline. If we don't get agreements

0:19:36.119 --> 0:19:38.080
<v Speaker 2>by the end of June. Do you think that there's

0:19:38.119 --> 0:19:41.480
<v Speaker 2>a real risk of some sort of upheaval in US equities?

0:19:41.880 --> 0:19:44.639
<v Speaker 5>I think, you know, I would call fall short of

0:19:44.640 --> 0:19:47.280
<v Speaker 5>calling it up evil. I think it will go back

0:19:48.080 --> 0:19:52.120
<v Speaker 5>to a more heightened focus on valuation, and there's still

0:19:52.200 --> 0:19:56.120
<v Speaker 5>issues relative to the valuations of companies and what they

0:19:56.119 --> 0:19:59.520
<v Speaker 5>can reasonably deliver in terms of growth.

0:20:00.800 --> 0:20:03.840
<v Speaker 4>So I think they're going to make a lot.

0:20:03.720 --> 0:20:06.160
<v Speaker 5>Of progress by the end of June, or they wouldn't

0:20:06.200 --> 0:20:10.880
<v Speaker 5>be advertising that as one of their objectives.

0:20:11.200 --> 0:20:13.080
<v Speaker 2>Tim will leave it there. Thank you so much. It's

0:20:13.080 --> 0:20:15.600
<v Speaker 2>always a pleasure. Tim Pagliara there. He is the chairman

0:20:15.640 --> 0:20:19.960
<v Speaker 2>also the chief investment officer at cap Wealth. Joining from Franklin,

0:20:20.000 --> 0:20:24.560
<v Speaker 2>Tennessee here on the Daybreak Asia podcast. Thanks for listening

0:20:24.600 --> 0:20:28.800
<v Speaker 2>to today's episode of the Bloomberg Daybreak Asia edition podcast.

0:20:29.119 --> 0:20:32.280
<v Speaker 2>Each weekday, we look at the story shaping markets, finance,

0:20:32.640 --> 0:20:35.719
<v Speaker 2>and geopolitics in the Asia Pacific. You can find us

0:20:35.720 --> 0:20:39.960
<v Speaker 2>on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere

0:20:39.960 --> 0:20:43.040
<v Speaker 2>else you listen. Join us again tomorrow for insight on

0:20:43.080 --> 0:20:47.240
<v Speaker 2>the market moves from Hong Kong to Singapore and Australia.

0:20:47.680 --> 0:20:50.159
<v Speaker 2>I'm Doug Chrisner, and this is Bloomberg