WEBVTT - 072426_2am_Stock Movers_FINAL

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

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move

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<v Speaker 1>today in Aita. I'm Stephen Carroll and I'm joined by

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<v Speaker 1>Bloomberg Markets reporter Anthony Stevens as he greats to talk

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<v Speaker 1>to you. Let's start with soft Bank getting hit by

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<v Speaker 1>both the tax saloff and higher oil prices.

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<v Speaker 3>Yeah, that combination of factors is hurting soft Bank. We

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<v Speaker 3>have a combination of worries about AI debt and how

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<v Speaker 3>sustainable that is. An AI debt is impacted by this

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<v Speaker 3>oil price spike because that's an inflationary event that pressures

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<v Speaker 3>the price of debt anyway across the board, and in particular,

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<v Speaker 3>AI debt is under kind of consideration because of the

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<v Speaker 3>barries that not all of it is sustainable. So soft

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<v Speaker 3>Bank has a bunch of investments in the AI ecosystem

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<v Speaker 3>and is trading down seven and a half percent. Also

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<v Speaker 3>in Japan, very similar to this concept, you do have

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<v Speaker 3>this dispersion within the AI kind of soft hardware segment,

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<v Speaker 3>and we had Disco miss on earnings and that's down

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<v Speaker 3>thirteen percent. There is no space to miss on the

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<v Speaker 3>AI trade at the moment.

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<v Speaker 1>Yeah, certainly, now a lesson being learned by a lot

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<v Speaker 1>of those companies on markets today. Let's turn to India next,

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<v Speaker 1>where we're seeing cherry is being impacted by that high

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<v Speaker 1>oil as the index there falling for a fifth straight day.

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<v Speaker 3>Yeah, so India is more of a slow motion market.

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<v Speaker 3>Generally speaking, volatility is very low in India. Indian volatility

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<v Speaker 3>is a stiny fraction of markets like Koreana one, but

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<v Speaker 3>it has started to trend low as oil prices get

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<v Speaker 3>more boring. So the Indian market's down one percent today,

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<v Speaker 3>led lower by the Indian banks which are down one percent.

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<v Speaker 3>And that's the aspect of this country being a very

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<v Speaker 3>large consumer economy, and as oil prices and LNG prices

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<v Speaker 3>and gas prices travel higher, there's less money around for

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<v Speaker 3>people to spend. And that is happening in the context

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<v Speaker 3>of quite a febrile political environment in India as people

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<v Speaker 3>wonder what the future of the country in the context

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<v Speaker 3>of AI and these higher oil prices can look like.

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<v Speaker 1>Indeed, and an interesting reflection on how that's playing out

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<v Speaker 1>in different markets in Asia as well. Let's get to

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<v Speaker 1>Taiwan next. Continue to see hadroins from the AI transition

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<v Speaker 1>away from GPUs to CPUs.

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<v Speaker 3>Yeah, so GPUs are the graphics processing units that were

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<v Speaker 3>very important in the early stages of AI to train

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<v Speaker 3>these LLM models. Now focus is moving away from that

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<v Speaker 3>kind of chip to CPUs where you can host your

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<v Speaker 3>AI locally and teach it to do the stuff that

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<v Speaker 3>is very relevant to your own corporator usage. So Intel

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<v Speaker 3>reported some great numbers on the back of that CPU demand,

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<v Speaker 3>but people are selling the other side of that trade

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<v Speaker 3>in TSMC. TSMC is a foundry competitor to Intel and

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<v Speaker 3>is trading down two point three percent. This follows on

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<v Speaker 3>from weakness in Chinese foundries earlier in the week.

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<v Speaker 1>And Anthony interestinct to keep an eye to on the

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<v Speaker 1>financial sector in Hong Kong. A couple of upgrades of

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<v Speaker 1>some banks there helping to move markets.

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<v Speaker 3>Yeah. This is finally touched on the recovery of the

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<v Speaker 3>Hong Kong domestic economy, which is booming thanks to booming

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<v Speaker 3>capital markets, decent stock market, and a lot of this

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<v Speaker 3>fundraising for China's AI expansion that is going alongside a

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<v Speaker 3>higher rates environment from the US. Remember that Hong Kong

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<v Speaker 3>is pegged to the US dollar, so the US interest

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<v Speaker 3>rate regime is Hong Kong's interest rate regime, and that

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<v Speaker 3>is allowing local banks to make more money and lend

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<v Speaker 3>more money. So Hong Kong banks have benefit from the

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<v Speaker 3>US rate environment and the improved economy in China, and

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<v Speaker 3>that's seeing JP Morgan upgrade Bank of China, Hong Kong

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<v Speaker 3>and Bank of East Asia, both of which are four

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<v Speaker 3>and a half percent in the context of pretty weak

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<v Speaker 3>markets overall.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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<v Speaker 2>us throughout the day for the latest roundup of companies

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<v Speaker 2>Auto with the Bloomberg Business app. Mm hmm