Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's take a look at some of the stocks
Speaker 3: on the move today. I'm Caroline hepga Hit in London
Speaker 3: and I'm joined by Bloomberg's market supporter Anthony Stevens. Good
Speaker 3: to speak to you, Anthony. Happy Friday. Wow, big eno
Speaker 3: the week though, isn't it? SoftBank? What does it mean
Speaker 3: to SoftBank to have open Ei maybe delaying its IPO.
Speaker 1: Yeah, it's really catalyzing this concern that Open Eyes investment
Speaker 1: will not be coming to my public markets and soft
Speaker 1: Bank will not be able to mark that to market
Speaker 1: and maybe look to unwind some of these big Ai
Speaker 1: bets that Masayoshi san has put up over the over
Speaker 1: the last few years. So it's down thirteen percent soft Bank.
Speaker 1: It's also taking down related Escape Square in Korea, which
Speaker 1: is the Korean equivalent of SoftBank, that's done around ten
Speaker 1: percent as well.
Speaker 3: Yeah. Meanwhile, Samsung and sk Heinech so expected to announce
Speaker 3: big AI investments. Is that why both those stocks are down?
Speaker 1: It's a mix of concerns. You have the memory price
Speaker 1: concerns in Apple, and then you have them coming up
Speaker 1: with this huge investment, and pardon the pun, it's really
Speaker 1: started some soul searching the in the Korean market today
Speaker 1: with heinis down around ten percent, And the reason for
Speaker 1: that is it's just a massive investment. It's six hundred
Speaker 1: and twenty six billion dollars right then, this is a
Speaker 1: huge investment in the context of the Korean economy. And
Speaker 1: bear in mind they also need to keep investing in
Speaker 1: the US under the trade pledges between Korea and the US.
Speaker 1: So what is going to keep paying for this investment
Speaker 1: is the concern markets have at the moment, and also,
Speaker 1: as you guys have been talking about, Korean retail is
Speaker 1: very long these two stocks, and the Korean market is
Speaker 1: pulled back very aggressively from the nine thousand level.
Speaker 3: Yeah, okay me more shares of Apple's supplies in Asia,
Speaker 3: they're also being hit hard because of this announcement around
Speaker 3: price hikes. It seems.
Speaker 1: Yeah, TSMC is the biggest supplier to Apples and that's
Speaker 1: down around two percent, But there are bigger losses in
Speaker 1: names that produce components for other smartphone makers like Shawmi,
Speaker 1: Samsung and the like, and the thinking is that if
Speaker 1: Apple is struggling, the others must be struggling much worse.
Speaker 1: And those names are down limit down. So limit down
Speaker 1: in Taiwan is down ten percent, and you have names
Speaker 1: like media Tech and Yagio that are down limit down.
Speaker 3: Now, Yeah, absolutely, what do you make then if this
Speaker 3: week and the volatility that we've seen over the course
Speaker 3: of this week and where we are now, I mean
Speaker 3: everything still a lot of things still do seem tohinge
Speaker 3: around every new development. When it comes to artificial intelligence.
Speaker 1: Yeah, the technology is in flux, as you're very correctly highlighted, right,
Speaker 1: And we are caught in this cross current of this
Speaker 1: enormous spending from US hyperscalers and to a less ex
Speaker 1: than Chinese hyperscalers that's going into the semiconductor space. The
Speaker 1: logic of that spending and the trajectory of that spending
Speaker 1: seems to be determining stock price movements. So whenever you
Speaker 1: get a challenge to the logic or the profitability of
Speaker 1: that spending, you continue to see these sharp downdrufs. So
Speaker 1: in the US, the hyperscillers have actually been on a
Speaker 1: Downdruft for a while now, they've been under performing the
Speaker 1: market overall, but the semiconductors have been strong enough to
Speaker 1: offset that. Now that dynamic could get challenged if there
Speaker 1: is a slowdown in onward purchasing. And one of the
Speaker 1: big things that is being debated is how binding are
Speaker 1: these agreements to buy semiconductors. Now, that's a legal question
Speaker 1: that I can't answer, but that is definitely in focus.
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