Speaker 1: Bloomberg Audio Studios, podcasts, radio News, The.
Speaker 2: Stock Movers Report, your roundup of companies making moves in
Speaker 2: the stock market, harnessing the power of Bloomberg Data.
Speaker 1: Let's take a look at some stocks on the move
Speaker 1: today in Aita. I'm Stephen Carroll and I'm joined by
Speaker 1: Bloomberg Markets reporter Anthony Stevens as he greats to talk
Speaker 1: to you. Let's start with soft Bank getting hit by
Speaker 1: both the tax saloff and higher oil prices.
Speaker 3: Yeah, that combination of factors is hurting soft Bank. We
Speaker 3: have a combination of worries about AI debt and how
Speaker 3: sustainable that is. An AI debt is impacted by this
Speaker 3: oil price spike because that's an inflationary event that pressures
Speaker 3: the price of debt anyway across the board, and in particular,
Speaker 3: AI debt is under kind of consideration because of the
Speaker 3: barries that not all of it is sustainable. So soft
Speaker 3: Bank has a bunch of investments in the AI ecosystem
Speaker 3: and is trading down seven and a half percent. Also
Speaker 3: in Japan, very similar to this concept, you do have
Speaker 3: this dispersion within the AI kind of soft hardware segment,
Speaker 3: and we had Disco miss on earnings and that's down
Speaker 3: thirteen percent. There is no space to miss on the
Speaker 3: AI trade at the moment.
Speaker 1: Yeah, certainly, now a lesson being learned by a lot
Speaker 1: of those companies on markets today. Let's turn to India next,
Speaker 1: where we're seeing cherry is being impacted by that high
Speaker 1: oil as the index there falling for a fifth straight day.
Speaker 3: Yeah, so India is more of a slow motion market.
Speaker 3: Generally speaking, volatility is very low in India. Indian volatility
Speaker 3: is a stiny fraction of markets like Koreana one, but
Speaker 3: it has started to trend low as oil prices get
Speaker 3: more boring. So the Indian market's down one percent today,
Speaker 3: led lower by the Indian banks which are down one percent.
Speaker 3: And that's the aspect of this country being a very
Speaker 3: large consumer economy, and as oil prices and LNG prices
Speaker 3: and gas prices travel higher, there's less money around for
Speaker 3: people to spend. And that is happening in the context
Speaker 3: of quite a febrile political environment in India as people
Speaker 3: wonder what the future of the country in the context
Speaker 3: of AI and these higher oil prices can look like.
Speaker 1: Indeed, and an interesting reflection on how that's playing out
Speaker 1: in different markets in Asia as well. Let's get to
Speaker 1: Taiwan next. Continue to see hadroins from the AI transition
Speaker 1: away from GPUs to CPUs.
Speaker 3: Yeah, so GPUs are the graphics processing units that were
Speaker 3: very important in the early stages of AI to train
Speaker 3: these LLM models. Now focus is moving away from that
Speaker 3: kind of chip to CPUs where you can host your
Speaker 3: AI locally and teach it to do the stuff that
Speaker 3: is very relevant to your own corporator usage. So Intel
Speaker 3: reported some great numbers on the back of that CPU demand,
Speaker 3: but people are selling the other side of that trade
Speaker 3: in TSMC. TSMC is a foundry competitor to Intel and
Speaker 3: is trading down two point three percent. This follows on
Speaker 3: from weakness in Chinese foundries earlier in the week.
Speaker 1: And Anthony interestinct to keep an eye to on the
Speaker 1: financial sector in Hong Kong. A couple of upgrades of
Speaker 1: some banks there helping to move markets.
Speaker 3: Yeah. This is finally touched on the recovery of the
Speaker 3: Hong Kong domestic economy, which is booming thanks to booming
Speaker 3: capital markets, decent stock market, and a lot of this
Speaker 3: fundraising for China's AI expansion that is going alongside a
Speaker 3: higher rates environment from the US. Remember that Hong Kong
Speaker 3: is pegged to the US dollar, so the US interest
Speaker 3: rate regime is Hong Kong's interest rate regime, and that
Speaker 3: is allowing local banks to make more money and lend
Speaker 3: more money. So Hong Kong banks have benefit from the
Speaker 3: US rate environment and the improved economy in China, and
Speaker 3: that's seeing JP Morgan upgrade Bank of China, Hong Kong
Speaker 3: and Bank of East Asia, both of which are four
Speaker 3: and a half percent in the context of pretty weak
Speaker 3: markets overall.
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