WEBVTT - Broadcom Slumps, US - Taiwan Trade Agreements Advance

0:00:02.400 --> 0:00:03.000
<v Speaker 1>Good morning.

0:00:03.120 --> 0:00:05.880
<v Speaker 2>I'm Brian Curtis and I'm Doug Krisner. Here are the

0:00:05.920 --> 0:00:07.320
<v Speaker 2>stories we're following today.

0:00:07.800 --> 0:00:11.239
<v Speaker 3>Well tomorrow, we'll see if November's employment report in the

0:00:11.360 --> 0:00:14.880
<v Speaker 3>United States shows more evidence of a cooling labor market.

0:00:15.000 --> 0:00:17.320
<v Speaker 3>We'll get the numbers around eight thirty in the morning.

0:00:17.320 --> 0:00:20.520
<v Speaker 3>Wall Street Time, Bloomberg's Michael McKee, how's a preview.

0:00:20.760 --> 0:00:23.119
<v Speaker 4>We should be seeing signs of a slowing economy in

0:00:23.160 --> 0:00:26.599
<v Speaker 4>the labor market, but economists say not just yet. The

0:00:26.640 --> 0:00:29.560
<v Speaker 4>consensus forecast is November saw the pace of hiring pick

0:00:29.640 --> 0:00:34.040
<v Speaker 4>up while unemployment was unchanged. About thirty thousand jobs won't

0:00:34.080 --> 0:00:36.400
<v Speaker 4>be new, They will just reflect the return of auto

0:00:36.440 --> 0:00:39.760
<v Speaker 4>workers to pay rolls after the UAW strike, But hiring

0:00:39.800 --> 0:00:44.080
<v Speaker 4>in healthcare, leisure and hospitality, and government should keep healthy numbers.

0:00:44.200 --> 0:00:48.320
<v Speaker 4>Beyond manufacturing, markets are pricing a lower than anticipated number, however,

0:00:48.560 --> 0:00:51.960
<v Speaker 4>so strength could lead to higher rates as investors worry

0:00:51.960 --> 0:00:54.480
<v Speaker 4>the FED may not yet be done with rate hikes.

0:00:54.680 --> 0:00:56.200
<v Speaker 1>Michael McKee, Bloomberg Radio.

0:00:56.320 --> 0:01:00.960
<v Speaker 2>We go next to Teszla's Dojo supercomputer pro. Now the

0:01:01.000 --> 0:01:04.920
<v Speaker 2>head of the project, ganesh Venta Katraman, has left the company.

0:01:05.240 --> 0:01:07.720
<v Speaker 2>The Dojo system if you don't know as a supercomputer

0:01:07.880 --> 0:01:12.679
<v Speaker 2>made to train machine learning models behind Tesla's self driving systems.

0:01:12.720 --> 0:01:14.039
<v Speaker 2>Here's Bloomberg's Mark German.

0:01:14.520 --> 0:01:17.120
<v Speaker 5>They have put a new person in charge named Peter Bannon.

0:01:17.560 --> 0:01:20.199
<v Speaker 5>He was a former mid double chip executive at Apple.

0:01:20.240 --> 0:01:22.920
<v Speaker 5>He's now leading the program. And obviously when the head

0:01:22.920 --> 0:01:25.640
<v Speaker 5>of the program leaves, that means there is some sort

0:01:25.640 --> 0:01:27.680
<v Speaker 5>of strategy rethink going on, and it is a bit

0:01:27.680 --> 0:01:30.319
<v Speaker 5>of a blow to the effort. So this is extraordinarily

0:01:30.360 --> 0:01:34.160
<v Speaker 5>significant news, both within Tesla as well as in the

0:01:34.200 --> 0:01:36.200
<v Speaker 5>modern processor and AI community.

0:01:36.319 --> 0:01:38.600
<v Speaker 2>That is Bloomberg's Mark German. There By the way, Tesla's

0:01:38.640 --> 0:01:41.120
<v Speaker 2>CEO Elon Musk was saying the company is planning to

0:01:41.200 --> 0:01:44.800
<v Speaker 2>invest more than a billion dollars on Project Dojo by

0:01:44.840 --> 0:01:47.800
<v Speaker 2>the end of twenty twenty four. Shares in Tesla today

0:01:47.800 --> 0:01:50.080
<v Speaker 2>brian up one point three percent in New York Training.

0:01:50.320 --> 0:01:53.080
<v Speaker 3>Well, let's take a closer look, doug at Broadcom's earnings.

0:01:53.120 --> 0:01:55.320
<v Speaker 3>This stock in after hours had been down, but it's

0:01:55.320 --> 0:01:57.840
<v Speaker 3>back to essentially unchanged.

0:01:57.880 --> 0:01:58.120
<v Speaker 1>Here.

0:01:58.600 --> 0:02:02.920
<v Speaker 3>Broadcomposted it's slow most sales growth since twenty twenty, as

0:02:02.920 --> 0:02:05.600
<v Speaker 3>the chip maker tried to pull out of an industry

0:02:05.640 --> 0:02:06.240
<v Speaker 3>wide slump.

0:02:06.280 --> 0:02:08.480
<v Speaker 1>Let's get the story from Bloomberg's Charlie Pillett.

0:02:08.720 --> 0:02:12.799
<v Speaker 6>Broadcom just completed the acquisition of VMware for more than

0:02:12.919 --> 0:02:16.920
<v Speaker 6>sixty billion dollars. Revenue grew four percent to nine point

0:02:16.919 --> 0:02:20.359
<v Speaker 6>three billion dollars in the fiscal fourth quarter. Broadcom also

0:02:20.440 --> 0:02:23.280
<v Speaker 6>predicted that its twenty twenty four revenue would be at

0:02:23.360 --> 0:02:27.800
<v Speaker 6>least fifty billion dollars including VMware, a number that appears

0:02:27.840 --> 0:02:31.919
<v Speaker 6>to be below the two companies combined sales estimates. Broadcom

0:02:31.960 --> 0:02:35.440
<v Speaker 6>has suffered accelerating growth brought on by sluggish demand for

0:02:35.520 --> 0:02:39.880
<v Speaker 6>computers and smartphones in New York. Charlie Pellett Bloomberg Radio.

0:02:39.960 --> 0:02:42.760
<v Speaker 2>The US in Mexico will be beating up screening of

0:02:42.840 --> 0:02:46.160
<v Speaker 2>foreign investments because of concerns over China. The story from

0:02:46.200 --> 0:02:47.400
<v Speaker 2>Bloomberg's and Kates.

0:02:47.639 --> 0:02:51.120
<v Speaker 7>The Biden administration of Mexico agreed to boost cooperation with

0:02:51.200 --> 0:02:53.959
<v Speaker 7>a rush of Chinese investors into the southern US neighbor,

0:02:54.080 --> 0:02:57.200
<v Speaker 7>stoking concerns about national security risks in the supply chain,

0:02:57.600 --> 0:03:00.639
<v Speaker 7>without mentioning China by name. The Chargery Apartments, as a

0:03:00.639 --> 0:03:04.240
<v Speaker 7>group formed with Mexico, will conduct investment reviews, especially in

0:03:04.280 --> 0:03:09.240
<v Speaker 7>certain technologies critical infrastructure and sensitive data. Treasury Secretary Janet

0:03:09.320 --> 0:03:12.639
<v Speaker 7>Yellen says working together on financial and regulatory policy can

0:03:12.680 --> 0:03:15.800
<v Speaker 7>further increase trade and investment and the benefits they bring.

0:03:16.160 --> 0:03:18.560
<v Speaker 7>In Washington and Kate's Bloomberg Radio.

0:03:18.639 --> 0:03:22.120
<v Speaker 3>US Trade Representative Catherine Tie says the US and Taiwan

0:03:22.160 --> 0:03:25.120
<v Speaker 3>are looking to build on a deal reached earlier this year.

0:03:25.600 --> 0:03:29.680
<v Speaker 3>The deal covers issues like regulatory practices, customs, and corruption,

0:03:30.160 --> 0:03:34.720
<v Speaker 3>but it excludes anything about terraff reductions traditionally called market access.

0:03:35.160 --> 0:03:37.880
<v Speaker 3>These are thorny issues that are difficult to resolve given

0:03:37.920 --> 0:03:42.240
<v Speaker 3>tensions between the US and China. Tai spoke about negotiations

0:03:42.280 --> 0:03:44.200
<v Speaker 3>with Taiwan earlier with Bloomberg.

0:03:44.600 --> 0:03:49.400
<v Speaker 8>We are negotiating another set of disciplines right as we speak.

0:03:49.440 --> 0:03:52.480
<v Speaker 8>We've been making excellent progress, and we will continue to

0:03:52.520 --> 0:03:57.720
<v Speaker 8>look at building out those agreements to have an arrangement

0:03:57.880 --> 0:04:01.400
<v Speaker 8>with the Taiwan economy that is fit for the times,

0:04:01.400 --> 0:04:03.520
<v Speaker 8>and the times are very challenging.

0:04:03.960 --> 0:04:07.119
<v Speaker 3>Tai did not rule out a free trade agreement with Taiwan,

0:04:07.520 --> 0:04:10.280
<v Speaker 3>but she said that the US is not seeking what

0:04:10.360 --> 0:04:15.760
<v Speaker 3>she called very comprehensive, maximally liberalizing deals with any country

0:04:15.920 --> 0:04:16.520
<v Speaker 3>at the moment.

0:04:16.839 --> 0:04:20.920
<v Speaker 2>Chinese President Chichinping told European Union leaders that he wants

0:04:21.000 --> 0:04:24.640
<v Speaker 2>these two sides to be key trading partners capable of

0:04:24.680 --> 0:04:28.200
<v Speaker 2>building trust or when it comes to supply chains. President

0:04:28.240 --> 0:04:32.360
<v Speaker 2>She met with European Commissioned President Urzula vonder Land along

0:04:32.400 --> 0:04:36.640
<v Speaker 2>with European Council President Charles Michel. Vonder Land said she

0:04:36.720 --> 0:04:39.640
<v Speaker 2>had a good and candidate exchange with Chichin Ping.

0:04:40.480 --> 0:04:44.480
<v Speaker 9>China is the EU's most important trading partner, but there

0:04:44.520 --> 0:04:49.080
<v Speaker 9>are clear imbalances and differences that we must address. We

0:04:49.240 --> 0:04:53.800
<v Speaker 9>both recognize the importance of de risking and strengthening the

0:04:53.839 --> 0:04:57.560
<v Speaker 9>resilience of our economies, and that is why the European

0:04:57.640 --> 0:05:01.200
<v Speaker 9>Union is working to ensure the security of supplied chains,

0:05:02.000 --> 0:05:06.280
<v Speaker 9>critical infrastructure and technological and industrial basis.

0:05:06.400 --> 0:05:08.960
<v Speaker 2>That is EC President or as A Lavanderley and by

0:05:09.000 --> 0:05:11.400
<v Speaker 2>the way, state media in China said that President She

0:05:11.640 --> 0:05:15.240
<v Speaker 2>and those EU leaders also discussed the Belton Road initiative.

0:05:15.360 --> 0:05:18.719
<v Speaker 2>During their meeting, She teleg officials his nation was willing

0:05:18.760 --> 0:05:23.279
<v Speaker 2>to connect his initiative with the EU's Global Gateway. Now.

0:05:23.320 --> 0:05:26.840
<v Speaker 2>The European program is an infrastructure plan. It's aimed at

0:05:26.880 --> 0:05:31.680
<v Speaker 2>competing with China in the areas of strategic regionality.

0:05:31.760 --> 0:05:35.760
<v Speaker 3>Brian, it's time for global news. Let's get right over

0:05:35.839 --> 0:05:37.920
<v Speaker 3>to Ed Baxter in the nine to sixty news room

0:05:37.960 --> 0:05:38.880
<v Speaker 3>in San Francisco.

0:05:39.080 --> 0:05:42.159
<v Speaker 10>Ed, all right, Brian, thank you. Israeli Prime Minister Benjamin Nette,

0:05:42.200 --> 0:05:45.239
<v Speaker 10>Yahoo is threatened to devastate by Root of Hezbollah opens

0:05:45.320 --> 0:05:48.360
<v Speaker 10>up a second front. That Yahoo made the warning during

0:05:48.360 --> 0:05:51.040
<v Speaker 10>a visit to the IDF and Northern Command. He says

0:05:51.200 --> 0:05:54.040
<v Speaker 10>a second front would lead to Beyroot and also southern Lebanont.

0:05:54.400 --> 0:05:58.599
<v Speaker 10>Bloomberg's Nick Wadams says, complete devastation is the threat.

0:05:58.760 --> 0:06:03.039
<v Speaker 11>There is a strategy here and that is essentially deterrence.

0:06:03.120 --> 0:06:07.120
<v Speaker 11>The last thing Israel wants right now is for the

0:06:07.160 --> 0:06:09.359
<v Speaker 11>shelling and back and forth that has happened on the

0:06:09.360 --> 0:06:12.400
<v Speaker 11>border of Lebanon to turn into a wire conflict that

0:06:12.440 --> 0:06:16.280
<v Speaker 11>would divert more of its resources away from its campaign

0:06:16.320 --> 0:06:17.160
<v Speaker 11>in Gaza.

0:06:17.320 --> 0:06:20.680
<v Speaker 10>And Bloomberg's Anthony Squasine says the campaign in Gaza itself

0:06:20.760 --> 0:06:23.800
<v Speaker 10>is going to take months. Five hundred more tunnels to destroy.

0:06:24.200 --> 0:06:27.400
<v Speaker 12>In total, they believe there are five hundred kilometers, which

0:06:27.400 --> 0:06:30.240
<v Speaker 12>is about three hundred and eleven miles of tunnels. I

0:06:30.240 --> 0:06:32.400
<v Speaker 12>don't know what that translates to but they feel there

0:06:32.400 --> 0:06:34.839
<v Speaker 12>are still many tunnels that they have to find.

0:06:34.880 --> 0:06:37.960
<v Speaker 10>And says there's no timeline actually spelled out. Meanwhile, the

0:06:37.960 --> 0:06:41.960
<v Speaker 10>presidents of Harvard University of Pennsylvania are walking back comments

0:06:42.000 --> 0:06:46.839
<v Speaker 10>indicating hesitancy and calling for genocide of Jews, violating school policy.

0:06:47.240 --> 0:06:49.919
<v Speaker 10>Penn president Liz McGill says she was focused in the

0:06:49.920 --> 0:06:53.960
<v Speaker 10>moment on our school's policy to not punish speech alone.

0:06:54.080 --> 0:06:56.880
<v Speaker 13>I want to be clear, a call for genocide of

0:06:56.960 --> 0:07:01.800
<v Speaker 13>Jewish people is threatening deeply. It is intentionally meant to

0:07:01.920 --> 0:07:05.680
<v Speaker 13>terrify a people who have been subjected to programs and

0:07:05.720 --> 0:07:10.600
<v Speaker 13>hatred for centuries and were the victims of mass genocide

0:07:11.080 --> 0:07:11.960
<v Speaker 13>in the Holocaust.

0:07:12.360 --> 0:07:15.840
<v Speaker 10>Harvard's Claudine Gay meanwhile released a statement saying genocide threats

0:07:15.880 --> 0:07:20.040
<v Speaker 10>have no place at Harvard. My deministration's top Envoid to

0:07:20.120 --> 0:07:23.840
<v Speaker 10>Asia says North Korea has spurned all outreach. Kurt Campbell

0:07:23.880 --> 0:07:27.400
<v Speaker 10>says difficult need even getting then address a letters sent to.

0:07:27.400 --> 0:07:29.280
<v Speaker 7>Them AID for Ukraine.

0:07:29.320 --> 0:07:33.239
<v Speaker 10>The debate on deadline, NSC spokesman John Kirby says time

0:07:33.560 --> 0:07:34.480
<v Speaker 10>is running out.

0:07:34.720 --> 0:07:38.960
<v Speaker 14>We've got a few more weeks here and then we're

0:07:38.960 --> 0:07:41.440
<v Speaker 14>out of slit when it comes to help in Ukraine

0:07:41.480 --> 0:07:43.720
<v Speaker 14>with this kind of security as systems that we've been

0:07:43.760 --> 0:07:47.520
<v Speaker 14>able to provide, and that's just that that should be

0:07:47.600 --> 0:07:49.720
<v Speaker 14>unacceptable to everybody.

0:07:49.320 --> 0:07:52.160
<v Speaker 10>That Senator Lindsay Graham says, the southern border has to

0:07:52.160 --> 0:07:52.840
<v Speaker 10>be addressed.

0:07:52.880 --> 0:07:56.280
<v Speaker 14>Secure the border before we get attacked, Secure the border

0:07:56.280 --> 0:07:58.280
<v Speaker 14>before the next terrorist attack happens.

0:07:58.840 --> 0:08:01.880
<v Speaker 10>Yeah. Meanwhile, LKS Women for the White House Koreane Jean

0:08:01.920 --> 0:08:06.480
<v Speaker 10>Pierre says, Congress does have the recess coming up, and

0:08:06.520 --> 0:08:07.480
<v Speaker 10>this is embarrassing.

0:08:07.680 --> 0:08:09.920
<v Speaker 15>It's stunning that we have gotten to this point and

0:08:09.960 --> 0:08:13.840
<v Speaker 15>that Republicans in Congress willing to give Putin a gift,

0:08:14.000 --> 0:08:17.000
<v Speaker 15>the greatest gift that Putin could hope for. That's what

0:08:17.040 --> 0:08:19.640
<v Speaker 15>we're seeing, and so they are playing chicken with our

0:08:19.720 --> 0:08:20.560
<v Speaker 15>national security.

0:08:21.240 --> 0:08:21.440
<v Speaker 16>Yeah.

0:08:21.520 --> 0:08:24.200
<v Speaker 10>Meanwhile, President Putin has a pledge in closer ties with

0:08:24.280 --> 0:08:27.920
<v Speaker 10>Iran after his golf visit. Russia and Iran have been

0:08:28.000 --> 0:08:32.360
<v Speaker 10>building a very close military tie. Global News twenty four

0:08:32.440 --> 0:08:34.360
<v Speaker 10>hours a day and whenever you want it with Bloomberg

0:08:34.400 --> 0:08:37.560
<v Speaker 10>News now in San Francisco. I'm at Baxter and this

0:08:38.200 --> 0:08:38.840
<v Speaker 10>is Bloomberg.

0:08:38.880 --> 0:08:40.360
<v Speaker 1>All right, Let's bring in Ian King.

0:08:40.400 --> 0:08:44.200
<v Speaker 3>Bloomberg News US Semiconductor Reporter for a closer look at

0:08:44.240 --> 0:08:47.200
<v Speaker 3>Broadcom's earnings and how that feeds into some of the

0:08:47.240 --> 0:08:50.760
<v Speaker 3>euphoria that we saw on artificial intelligence.

0:08:50.760 --> 0:08:52.120
<v Speaker 1>Ian, thanks very much so.

0:08:52.160 --> 0:08:55.560
<v Speaker 3>The broadcon earning earnings for a little bit lackluster, revenue

0:08:55.600 --> 0:08:59.559
<v Speaker 3>only up four percent, and the forecast, as we heard

0:08:59.559 --> 0:09:01.720
<v Speaker 3>there from Charlie, and as you pointed out in your story,

0:09:01.920 --> 0:09:05.040
<v Speaker 3>the forecast for sales only fifty billion, which isn't all

0:09:05.080 --> 0:09:09.360
<v Speaker 3>that impressive given the addition of VMware, But the CEO

0:09:09.559 --> 0:09:11.560
<v Speaker 3>did sound optimistic about AI.

0:09:11.800 --> 0:09:13.800
<v Speaker 1>So it's kind of steady as she goes, I guess.

0:09:13.960 --> 0:09:16.040
<v Speaker 16>And there are a lot of moving parts here, as

0:09:16.040 --> 0:09:19.360
<v Speaker 16>you would expect from a company that just acquired another

0:09:19.440 --> 0:09:22.680
<v Speaker 16>one for the size of VMware. So there were some

0:09:22.800 --> 0:09:25.040
<v Speaker 16>explanations on the core which I think help and you

0:09:25.160 --> 0:09:28.000
<v Speaker 16>sort of stock come back a little bit in after

0:09:28.080 --> 0:09:32.800
<v Speaker 16>I was trading. The forecast looked light, and how the

0:09:32.880 --> 0:09:35.560
<v Speaker 16>company explained this was like, look, we're going to get

0:09:35.559 --> 0:09:39.760
<v Speaker 16>about twelve billion dollars of revenue buy ating VMware in

0:09:39.800 --> 0:09:44.600
<v Speaker 16>our next financial year. ESTIMATESIC calls for about fourteen, so

0:09:44.679 --> 0:09:47.120
<v Speaker 16>where's a two billion going? And what he said was, look,

0:09:47.160 --> 0:09:49.520
<v Speaker 16>we're going to spin off a couple of units that

0:09:49.600 --> 0:09:52.880
<v Speaker 16>we don't think fit with our overall portfolio. Those two

0:09:53.000 --> 0:09:56.240
<v Speaker 16>units account for about two billion of sales, so we've

0:09:56.280 --> 0:09:58.160
<v Speaker 16>not included them in our forecast, and I think that

0:09:58.240 --> 0:10:00.839
<v Speaker 16>helped people get a little bit more comfortable with what

0:10:00.920 --> 0:10:04.000
<v Speaker 16>was going on overall. But yeah, obviously there was a

0:10:04.000 --> 0:10:06.360
<v Speaker 16>lot of explaining that needed to be done about AI

0:10:06.840 --> 0:10:09.480
<v Speaker 16>and some of the other areas that they were that

0:10:09.520 --> 0:10:11.000
<v Speaker 16>they're working on as well.

0:10:11.120 --> 0:10:13.240
<v Speaker 2>So Ian connect the dots for me. So you have

0:10:13.360 --> 0:10:17.400
<v Speaker 2>Broadcom the acquisition of VMware, How does that all fit

0:10:17.600 --> 0:10:19.720
<v Speaker 2>with this theme of artificial intelligence?

0:10:20.640 --> 0:10:25.880
<v Speaker 16>VMware does not. That's you know what. You know, the

0:10:26.960 --> 0:10:30.520
<v Speaker 16>AI was definitely a focus on the call, and there

0:10:30.559 --> 0:10:33.600
<v Speaker 16>was definitely some excitement. What they said was, look, you

0:10:33.600 --> 0:10:36.800
<v Speaker 16>know our networking gear. These are the switch chips which

0:10:36.840 --> 0:10:40.040
<v Speaker 16>control the flow of data between computers in the data center.

0:10:40.520 --> 0:10:43.840
<v Speaker 16>They're doing great. You know, all of those powerful projections

0:10:43.840 --> 0:10:45.839
<v Speaker 16>such as the one that we saw yesterday from am D,

0:10:46.160 --> 0:10:49.360
<v Speaker 16>they're true. We're seeing the same thing. You know, that

0:10:49.559 --> 0:10:52.719
<v Speaker 16>particular portion has gone from like fifteen percent has gone

0:10:52.760 --> 0:10:56.000
<v Speaker 16>as high as fifteen percent of our semiconductor revenue, and

0:10:56.040 --> 0:10:59.360
<v Speaker 16>it's going to go considerably higher than that, So yes,

0:10:59.480 --> 0:11:01.240
<v Speaker 16>you know, they take full of the boxes on that

0:11:02.080 --> 0:11:04.120
<v Speaker 16>the side of the fence, But at the same time,

0:11:04.160 --> 0:11:07.920
<v Speaker 16>that's only a certain percentage and has a limited impact

0:11:07.960 --> 0:11:11.440
<v Speaker 16>on what's going on overall, which includes enterprise software, which

0:11:11.480 --> 0:11:17.640
<v Speaker 16>includes virtualization software from VMware, It includes networking chips that

0:11:17.720 --> 0:11:21.160
<v Speaker 16>go into the iPhone and you name it, and storage

0:11:21.160 --> 0:11:24.600
<v Speaker 16>and everything else that Broadcom does as well. So yes,

0:11:24.640 --> 0:11:27.440
<v Speaker 16>it's great, Yes, fantastic. We should be excited about AI,

0:11:27.559 --> 0:11:30.680
<v Speaker 16>but bear in mind it's only a part of the story.

0:11:31.360 --> 0:11:31.920
<v Speaker 1>In a sense.

0:11:32.000 --> 0:11:36.760
<v Speaker 3>The additional uh you know, acquisition of VMware, adding more

0:11:36.840 --> 0:11:40.320
<v Speaker 3>software in the picture would sort of seem to smooth

0:11:40.400 --> 0:11:43.320
<v Speaker 3>out the earnings path of the company, wouldn't it, Because

0:11:43.600 --> 0:11:49.120
<v Speaker 3>semiconductors are volatile, quite cyclical in nature, and really famous

0:11:49.160 --> 0:11:51.640
<v Speaker 3>for going up and down a lot, whereas software would

0:11:51.640 --> 0:11:52.640
<v Speaker 3>be steadier.

0:11:52.240 --> 0:11:52.720
<v Speaker 1>Wouldn't it.

0:11:53.520 --> 0:11:56.319
<v Speaker 16>Well, this is this is back to you know, Hocktan's

0:11:56.640 --> 0:12:00.480
<v Speaker 16>core thesis, and you're right to focus on that idea

0:12:00.559 --> 0:12:04.679
<v Speaker 16>is that the semiconductor industry is not cyclical anymore. It's stable,

0:12:04.720 --> 0:12:07.480
<v Speaker 16>and we should start acting like that. What's happened over

0:12:07.520 --> 0:12:09.800
<v Speaker 16>the last couple of years has been sort of an anomaly,

0:12:10.640 --> 0:12:13.240
<v Speaker 16>but yes, software also fix that. He said, a lot

0:12:13.240 --> 0:12:15.960
<v Speaker 16>of these companies are out there chasing growth like idiots.

0:12:16.000 --> 0:12:18.719
<v Speaker 16>Basically he didn't say it, but he kind of implies it.

0:12:18.760 --> 0:12:21.640
<v Speaker 16>And when he talks about these other companies, he uses

0:12:21.640 --> 0:12:25.440
<v Speaker 16>the word sensible and you know, if you stop doing

0:12:25.440 --> 0:12:27.959
<v Speaker 16>that and you just concentrate on what you're good at,

0:12:28.000 --> 0:12:30.240
<v Speaker 16>which he's going to do with VMware, and he says

0:12:30.280 --> 0:12:33.960
<v Speaker 16>he's done with previous acquisition. Yeah, you don't see this

0:12:34.360 --> 0:12:37.600
<v Speaker 16>huge growth spurt, but at the same time, you have

0:12:37.720 --> 0:12:40.560
<v Speaker 16>fabulous level of cash generation, you have a fabulous level

0:12:40.559 --> 0:12:43.959
<v Speaker 16>of profitability. We're going to give you investors a lot

0:12:43.960 --> 0:12:46.440
<v Speaker 16>of returns and that's a sensible way. That's the way

0:12:46.440 --> 0:12:48.520
<v Speaker 16>that these companies should be run. You know, once they

0:12:48.920 --> 0:12:52.040
<v Speaker 16>wake up and smaller conflicts and stop chasing these crazy

0:12:52.160 --> 0:12:53.880
<v Speaker 16>you know, these crazy things that they're never going to

0:12:53.960 --> 0:12:56.840
<v Speaker 16>get to. That's his thesis, and that's what he sees

0:12:56.960 --> 0:12:59.280
<v Speaker 16>is the is how the industry is. So yes, there

0:12:59.280 --> 0:13:02.840
<v Speaker 16>are all these balancing factors, but you know, he's sticking

0:13:02.880 --> 0:13:06.040
<v Speaker 16>to this view of the world is only growing, you know,

0:13:06.080 --> 0:13:09.800
<v Speaker 16>a small increment on top of GDP minus what's going

0:13:09.840 --> 0:13:12.400
<v Speaker 16>on with AI right now, because that's a new new thing.

0:13:12.640 --> 0:13:15.320
<v Speaker 2>Oh well, speaking of AI yesterday, Ian, of course, we

0:13:15.320 --> 0:13:18.480
<v Speaker 2>were talking about the announcement from Advanced micro Devices the

0:13:18.520 --> 0:13:21.440
<v Speaker 2>new MI I three hundred accelerator chip. Kind of a

0:13:21.480 --> 0:13:24.000
<v Speaker 2>delayed reaction when you look at the stock today, AMD

0:13:24.080 --> 0:13:27.959
<v Speaker 2>shares were up ten percent. Is this this new chip

0:13:28.040 --> 0:13:31.560
<v Speaker 2>capable of competing with the one from Nvidio when it

0:13:31.559 --> 0:13:33.120
<v Speaker 2>comes to running AI software?

0:13:33.440 --> 0:13:37.600
<v Speaker 16>AMD said it was, and you know, I mean it's

0:13:37.600 --> 0:13:40.960
<v Speaker 16>got two right that. You know. They Lisa through the CEO,

0:13:41.160 --> 0:13:43.400
<v Speaker 16>and we had a couple of conversations and say yesterday,

0:13:43.480 --> 0:13:46.000
<v Speaker 16>She's like, look, it's important that we can compete with

0:13:46.040 --> 0:13:48.240
<v Speaker 16>them on training, which is a big market right now.

0:13:48.400 --> 0:13:50.599
<v Speaker 16>But when it comes to actually implementing this software and

0:13:50.679 --> 0:13:52.640
<v Speaker 16>running it, we've got to be good at that, and

0:13:52.679 --> 0:13:54.640
<v Speaker 16>we are going to be better at that than they

0:13:54.679 --> 0:13:57.360
<v Speaker 16>are because that's a bigger market. And it took a

0:13:57.360 --> 0:13:59.160
<v Speaker 16>while for people to sort of get their head around that,

0:13:59.200 --> 0:14:01.040
<v Speaker 16>but I think they did. I think the big headline

0:14:01.040 --> 0:14:03.720
<v Speaker 16>from yesterday was she talked about the market as being

0:14:04.600 --> 0:14:08.280
<v Speaker 16>with four hundred billion dollars of total revenue for the

0:14:08.400 --> 0:14:10.920
<v Speaker 16>X alertis bear in mind the total chip industry was

0:14:10.920 --> 0:14:13.480
<v Speaker 16>only worth five hundred and ninety billion last year, so

0:14:13.480 --> 0:14:16.280
<v Speaker 16>that's a massive amount of growth that she's proecting. And

0:14:16.320 --> 0:14:18.440
<v Speaker 16>she said, she looked to me said, Ian, you know me.

0:14:18.920 --> 0:14:20.920
<v Speaker 16>You know I don't get carried away with these things.

0:14:21.000 --> 0:14:23.720
<v Speaker 16>I'm telling you this. I believe it all right.

0:14:23.760 --> 0:14:25.600
<v Speaker 3>Well, thanks very much, Ian, We love having you on

0:14:25.680 --> 0:14:30.960
<v Speaker 3>the show. Ian King, Bloomberg News US Semiconductor Reporter. This

0:14:31.240 --> 0:14:33.960
<v Speaker 3>is Bloomberg Daybreak Asia. Your morning brief on this story

0:14:34.040 --> 0:14:37.440
<v Speaker 3>is making news from Hong Kong to Singapore and Wall Street.

0:14:37.600 --> 0:14:41.680
<v Speaker 2>Look for us on your podcast feed every day, on Apple, Spotify,

0:14:41.920 --> 0:14:43.920
<v Speaker 2>and anywhere else you get your podcast.

0:14:44.120 --> 0:14:46.760
<v Speaker 3>You can also listen live each day on Bloomberg eleven

0:14:46.800 --> 0:14:49.200
<v Speaker 3>three to zero in New York, Bloomberg ninety nine to

0:14:49.200 --> 0:14:52.440
<v Speaker 3>one in Washington, Bloomberg one oh sixty one in Boston,

0:14:52.720 --> 0:14:55.280
<v Speaker 3>and Bloomberg nine sixty in San Francisco.

0:14:55.680 --> 0:14:58.600
<v Speaker 2>Our flagship New York station is also available on your

0:14:58.640 --> 0:15:02.640
<v Speaker 2>Amazon Alexa device. This is Just Say Alexa Play Bloomberg

0:15:02.680 --> 0:15:03.960
<v Speaker 2>eleven thirty plus.

0:15:04.120 --> 0:15:07.520
<v Speaker 3>Listen coast to coast on the Bloomberg Business app, Sirius

0:15:07.640 --> 0:15:11.880
<v Speaker 3>XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

0:15:11.960 --> 0:15:12.840
<v Speaker 3>dot Com.

0:15:12.920 --> 0:15:14.360
<v Speaker 1>I'm Brian Curtis.

0:15:14.080 --> 0:15:16.480
<v Speaker 2>And I'm Doug Chrisner. Join us again tomorrow for all

0:15:16.520 --> 0:15:19.000
<v Speaker 2>the news you need to start your day, right here

0:15:19.080 --> 0:15:22.800
<v Speaker 2>on Bloomberg day Break Asia