WEBVTT - SoftBank Falls, Samsung Drops, MediaTek Dips 

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

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

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

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<v Speaker 3>Now, let's take a look at some of the stocks

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<v Speaker 3>on the move today. I'm Caroline hepga Hit in London

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<v Speaker 3>and I'm joined by Bloomberg's market supporter Anthony Stevens. Good

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<v Speaker 3>to speak to you, Anthony. Happy Friday. Wow, big eno

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<v Speaker 3>the week though, isn't it? SoftBank? What does it mean

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<v Speaker 3>to SoftBank to have open Ei maybe delaying its IPO.

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<v Speaker 1>Yeah, it's really catalyzing this concern that Open Eyes investment

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<v Speaker 1>will not be coming to my public markets and soft

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<v Speaker 1>Bank will not be able to mark that to market

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<v Speaker 1>and maybe look to unwind some of these big Ai

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<v Speaker 1>bets that Masayoshi san has put up over the over

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<v Speaker 1>the last few years. So it's down thirteen percent soft Bank.

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<v Speaker 1>It's also taking down related Escape Square in Korea, which

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<v Speaker 1>is the Korean equivalent of SoftBank, that's done around ten

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<v Speaker 1>percent as well.

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<v Speaker 3>Yeah. Meanwhile, Samsung and sk Heinech so expected to announce

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<v Speaker 3>big AI investments. Is that why both those stocks are down?

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<v Speaker 1>It's a mix of concerns. You have the memory price

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<v Speaker 1>concerns in Apple, and then you have them coming up

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<v Speaker 1>with this huge investment, and pardon the pun, it's really

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<v Speaker 1>started some soul searching the in the Korean market today

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<v Speaker 1>with heinis down around ten percent, And the reason for

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<v Speaker 1>that is it's just a massive investment. It's six hundred

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<v Speaker 1>and twenty six billion dollars right then, this is a

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<v Speaker 1>huge investment in the context of the Korean economy. And

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<v Speaker 1>bear in mind they also need to keep investing in

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<v Speaker 1>the US under the trade pledges between Korea and the US.

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<v Speaker 1>So what is going to keep paying for this investment

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<v Speaker 1>is the concern markets have at the moment, and also,

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<v Speaker 1>as you guys have been talking about, Korean retail is

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<v Speaker 1>very long these two stocks, and the Korean market is

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<v Speaker 1>pulled back very aggressively from the nine thousand level.

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<v Speaker 3>Yeah, okay me more shares of Apple's supplies in Asia,

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<v Speaker 3>they're also being hit hard because of this announcement around

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<v Speaker 3>price hikes. It seems.

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<v Speaker 1>Yeah, TSMC is the biggest supplier to Apples and that's

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<v Speaker 1>down around two percent, But there are bigger losses in

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<v Speaker 1>names that produce components for other smartphone makers like Shawmi,

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<v Speaker 1>Samsung and the like, and the thinking is that if

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<v Speaker 1>Apple is struggling, the others must be struggling much worse.

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<v Speaker 1>And those names are down limit down. So limit down

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<v Speaker 1>in Taiwan is down ten percent, and you have names

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<v Speaker 1>like media Tech and Yagio that are down limit down.

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<v Speaker 3>Now, Yeah, absolutely, what do you make then if this

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<v Speaker 3>week and the volatility that we've seen over the course

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<v Speaker 3>of this week and where we are now, I mean

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<v Speaker 3>everything still a lot of things still do seem tohinge

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<v Speaker 3>around every new development. When it comes to artificial intelligence.

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<v Speaker 1>Yeah, the technology is in flux, as you're very correctly highlighted, right,

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<v Speaker 1>And we are caught in this cross current of this

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<v Speaker 1>enormous spending from US hyperscalers and to a less ex

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<v Speaker 1>than Chinese hyperscalers that's going into the semiconductor space. The

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<v Speaker 1>logic of that spending and the trajectory of that spending

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<v Speaker 1>seems to be determining stock price movements. So whenever you

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<v Speaker 1>get a challenge to the logic or the profitability of

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<v Speaker 1>that spending, you continue to see these sharp downdrufs. So

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<v Speaker 1>in the US, the hyperscillers have actually been on a

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<v Speaker 1>Downdruft for a while now, they've been under performing the

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<v Speaker 1>market overall, but the semiconductors have been strong enough to

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<v Speaker 1>offset that. Now that dynamic could get challenged if there

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<v Speaker 1>is a slowdown in onward purchasing. And one of the

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<v Speaker 1>big things that is being debated is how binding are

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<v Speaker 1>these agreements to buy semiconductors. Now, that's a legal question

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<v Speaker 1>that I can't answer, but that is definitely in focus.

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