WEBVTT - Samsung Dips, DBS Falls, TSMC Lower 

0:00:02.540 --> 0:00:09.950
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio, news. The Stock Movers Report,

0:00:10.250 --> 0:00:13.410
<v Speaker 1>your roundup of companies making moves in the stock market,

0:00:13.690 --> 0:00:15.870
<v Speaker 1>harnessing the power of Bloomberg data.

0:00:16.350 --> 0:00:17.570
<v Speaker 2>Now, let's have a look at the stocks on the

0:00:17.590 --> 0:00:18.710
<v Speaker 2>move today in Asia.

0:00:18.770 --> 0:00:19.630
<v Speaker 1>I'm Caroline Hipkin.

0:00:19.670 --> 0:00:23.509
<v Speaker 2>I'm joined by our markets reporter, Anthony Stevens. Good to

0:00:23.550 --> 0:00:27.190
<v Speaker 2>speak to you. Let's think about Samsung record numbers, but

0:00:27.250 --> 0:00:30.190
<v Speaker 2>the response wasn't so good. I mean, this record just

0:00:30.230 --> 0:00:31.790
<v Speaker 2>plays again and again, doesn't it?

0:00:33.050 --> 0:00:35.290
<v Speaker 3>Yeah, we're really getting to the point where, you know,

0:00:35.950 --> 0:00:40.790
<v Speaker 3>kind of very long-winded headlines about record earnings are really

0:00:40.850 --> 0:00:44.030
<v Speaker 3>not catching the eye anymore. Samsung, though, does set a

0:00:44.110 --> 0:00:46.930
<v Speaker 3>new benchmark, 100 trillion won in one quarter. That's the

0:00:46.970 --> 0:00:49.610
<v Speaker 3>first time a Korean company has done that. And we

0:00:49.650 --> 0:00:52.090
<v Speaker 3>did see some local optimism right on open. We did

0:00:52.110 --> 0:00:55.670
<v Speaker 3>see shares open higher in the next trade pre-open session.

0:00:55.710 --> 0:00:58.520
<v Speaker 3>And then during the KRX regular trading, the stock has

0:00:58.550 --> 0:01:00.990
<v Speaker 3>just faded the whole day. And one of the reasons

0:01:01.130 --> 0:01:03.810
<v Speaker 3>for that is that it missed analyst estimates on the

0:01:03.870 --> 0:01:06.690
<v Speaker 3>high side. And there's also plenty of competition from the

0:01:06.770 --> 0:01:09.509
<v Speaker 3>rest of the memory space. So we have Kyokusha trading

0:01:09.569 --> 0:01:12.470
<v Speaker 3>quite well as it looks to be upgraded in the topics.

0:01:12.920 --> 0:01:16.200
<v Speaker 3>And Hynix investors are looking forward to trading the kind

0:01:16.260 --> 0:01:19.060
<v Speaker 3>of spin-off in the U.S. in solid time. So there

0:01:19.100 --> 0:01:22.180
<v Speaker 3>is a little bit of competition for memory headlines. Micron

0:01:22.200 --> 0:01:25.240
<v Speaker 3>was up 4% overnight in the U.S. as well. on

0:01:25.300 --> 0:01:27.940
<v Speaker 3>strong analyst commentary. So, it looks like there isn't enough

0:01:27.980 --> 0:01:30.039
<v Speaker 3>money to buy all of these memory names at the

0:01:30.080 --> 0:01:31.880
<v Speaker 3>same time. Right.

0:01:32.080 --> 0:01:35.800
<v Speaker 2>Interesting. Meanwhile, in China, the line is being drawn between

0:01:36.040 --> 0:01:39.230
<v Speaker 2>large and mid-caps. How's that playing out?

0:01:40.180 --> 0:01:43.020
<v Speaker 3>That's not an overly optimistic kind of breakdown for the

0:01:43.060 --> 0:01:47.380
<v Speaker 3>Chinese market. You're seeing the big state-run companies that aren't

0:01:47.460 --> 0:01:51.420
<v Speaker 3>growing very fast but aren't having many wobbles either outperforming

0:01:51.480 --> 0:01:53.900
<v Speaker 3>as China comes back from a multi-day holiday. So you

0:01:53.940 --> 0:01:57.690
<v Speaker 3>have strength in the banks in ICBC and CCB and

0:01:57.720 --> 0:02:00.830
<v Speaker 3>Bank of China. And you also have obvious strength in

0:02:00.870 --> 0:02:02.710
<v Speaker 3>the oil sector that is catching up to some of

0:02:02.750 --> 0:02:06.170
<v Speaker 3>this Iran drama. You have PetroChina up three and Sinopec

0:02:06.220 --> 0:02:08.790
<v Speaker 3>up three and a half. But on the downside, you

0:02:08.830 --> 0:02:12.590
<v Speaker 3>see some significant losses in the new technology space. You

0:02:12.650 --> 0:02:16.830
<v Speaker 3>see UNJ Semiconductor is down 20%, which is limit down.

0:02:17.510 --> 0:02:21.480
<v Speaker 3>You also have Suzhou Everbright Photonics, which is down 20%,

0:02:21.480 --> 0:02:23.800
<v Speaker 3>which is limit down. And these two stocks are impacted

0:02:23.860 --> 0:02:26.160
<v Speaker 3>by some of these curbs the U.S. is trying to make.

0:02:26.620 --> 0:02:30.480
<v Speaker 3>on Chinese infrastructure in the optical space. Meanwhile, in Europe,

0:02:30.639 --> 0:02:34.430
<v Speaker 3>the kind of curbs on Chinese EVs or hybrid vehicles

0:02:34.490 --> 0:02:37.490
<v Speaker 3>is also hurting Guangzhou Auto and Anhui Auto, which are

0:02:37.500 --> 0:02:38.950
<v Speaker 3>down around 10%.

0:02:38.950 --> 0:02:41.290
<v Speaker 2>Yes, that's going to be interesting. It'd be a real shake-up,

0:02:41.330 --> 0:02:44.489
<v Speaker 2>wouldn't it? Not just electric vehicles. Obviously, there was a

0:02:44.510 --> 0:02:50.389
<v Speaker 2>big impact from tariffs being imposed on EVs from China.

0:02:50.430 --> 0:02:55.570
<v Speaker 2>But actually, if the basket now includes hybrids, that's even bigger,

0:02:55.610 --> 0:02:59.340
<v Speaker 2>isn't it? also given over the summer, how many China

0:02:59.410 --> 0:03:03.470
<v Speaker 2>is selling in Europe. Look, the banks in Hong Kong

0:03:03.510 --> 0:03:07.290
<v Speaker 2>and Singapore, they are also seeing the effects of the

0:03:07.410 --> 0:03:11.419
<v Speaker 2>French debt situation. Just explain that link. I mean, I

0:03:11.419 --> 0:03:15.480
<v Speaker 2>understand that Japan and Japanese investors have big exposure in

0:03:15.520 --> 0:03:18.580
<v Speaker 2>terms of– and they are big buyers of French debt.

0:03:18.600 --> 0:03:21.030
<v Speaker 2>But how does Hong Kong and Singapore fit in?

0:03:21.919 --> 0:03:24.120
<v Speaker 3>We're seeing a little bit of a repricing of how

0:03:24.180 --> 0:03:27.460
<v Speaker 3>much money people can make trading bonds or holding bonds

0:03:27.740 --> 0:03:32.060
<v Speaker 3>or releasing debt capital market deals when interest rate volatility

0:03:32.139 --> 0:03:34.910
<v Speaker 3>is so high. So it's flown under the radar because

0:03:34.930 --> 0:03:37.650
<v Speaker 3>these AI companies have really managed to get deals off.

0:03:37.690 --> 0:03:41.750
<v Speaker 3>But Mitsui Fudo-san in Japan cancelled the bond offering. And

0:03:41.770 --> 0:03:44.450
<v Speaker 3>that is more typical of the price action that you're

0:03:44.490 --> 0:03:47.780
<v Speaker 3>probably seeing in the primary market outside the AI space.

0:03:47.820 --> 0:03:50.100
<v Speaker 3>So There is a repricing of how much money banks

0:03:50.140 --> 0:03:53.000
<v Speaker 3>can make either trading or issuing new debt for other people.

0:03:53.340 --> 0:03:57.580
<v Speaker 3>And also the lending environment is getting incredibly squeezed by

0:03:57.620 --> 0:04:00.160
<v Speaker 3>these higher yields. Remember that Hong Kong and Singapore are

0:04:00.250 --> 0:04:03.630
<v Speaker 3>more or less tied to U.S. interest rates to different degrees.

0:04:03.730 --> 0:04:04.070
<v Speaker 1>And as U.S.

0:04:04.650 --> 0:04:08.770
<v Speaker 3>Yields go higher, so does the monetary policy tighten in

0:04:08.830 --> 0:04:12.350
<v Speaker 3>these countries. HSBC, which is also exposed to the mess

0:04:12.390 --> 0:04:17.080
<v Speaker 3>in the UK, is down 4%. The DBS is down 5%.

0:04:17.080 --> 0:04:19.680
<v Speaker 3>And you also have smaller Chinese banks that are kind

0:04:19.720 --> 0:04:23.140
<v Speaker 3>of domesticated in Hong Kong, down around 2% to 3%.

0:04:23.140 --> 0:04:26.150
<v Speaker 3>This is particularly kind of a big move and a

0:04:26.260 --> 0:04:28.610
<v Speaker 3>bit of a risk shock because these banks have been

0:04:28.630 --> 0:04:31.070
<v Speaker 3>doing really well all year and have suddenly lost 20%

0:04:31.070 --> 0:04:31.589
<v Speaker 3>in a straight line.

0:04:33.540 --> 0:04:37.580
<v Speaker 1>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:37.660 --> 0:04:40.180
<v Speaker 1>us throughout the day for the latest roundup of companies

0:04:40.279 --> 0:04:44.230
<v Speaker 1>making news on Wall Street. And for the latest market-moving headlines,

0:04:44.529 --> 0:04:49.050
<v Speaker 1>listen to Bloomberg Radio live. Catch us on YouTube, Bloomberg.com,

0:04:49.250 --> 0:04:52.210
<v Speaker 1>and on Apple CarPlay and Android Auto with the Bloomberg

0:04:52.270 --> 0:04:52.909
<v Speaker 1>Business app.