WEBVTT - Taiwan and China Tech Tensions, X Goes Dark in Brazil 0:00:00.920 --> 0:00:01.639 From Mahard. 0:00:01.800 --> 0:00:06.240 We're Innovation of Money and Power Collie in Silicon Vallet NBN. 0:00:06.559 --> 0:00:10.600 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.480 --> 0:00:27.080 Now from New York and San Francisco. This is Bloomberg 0:00:27.120 --> 0:00:31.800 Technology coming up. Taiwan accusing China of illegally poaching talent 0:00:31.840 --> 0:00:32.760 from its tech firms. 0:00:33.080 --> 0:00:34.680 We dig into the trade tensions. 0:00:35.640 --> 0:00:37.400 An X goes dark in Brazil. 0:00:37.520 --> 0:00:41.240 Judge is confirming a country wide suspension on the platform 0:00:41.280 --> 0:00:42.720 formerly known as Twitter. 0:00:42.520 --> 0:00:45.480 And short sellers are circling some of AI's biggest question 0:00:45.600 --> 0:00:49.720 marks as earning season in marches on analysis coming up, 0:00:49.760 --> 0:00:52.760 But first a check in on the pressure on the markets. 0:00:52.800 --> 0:00:55.200 It is a risk of day to kick off September. 0:00:55.280 --> 0:00:58.120 It is a month that generally is hard at work 0:00:58.320 --> 0:01:00.480 if you're long stocks. But certainly and as that one 0:01:00.960 --> 0:01:02.760 by two point three percent edited is the worst day 0:01:02.800 --> 0:01:04.080 since the beginning of August. 0:01:04.520 --> 0:01:06.320 And you're looking at the reasons why. 0:01:06.840 --> 0:01:09.480 Yeah, there's a lot of downward pressure on the chip sector. 0:01:09.480 --> 0:01:13.080 In fact, that's probably an understatement. The socks down six percent, 0:01:13.080 --> 0:01:15.080 it is biggest drop since August. First and that name 0:01:15.120 --> 0:01:17.680 there is a big reason why. And video down eight 0:01:17.720 --> 0:01:20.480 percent on track intra day for its biggest drop in 0:01:20.560 --> 0:01:24.160 about a month, although actually at times in the session 0:01:24.200 --> 0:01:27.720 it's biggest dropped since April. There isn't really a clear catalyst. 0:01:27.800 --> 0:01:30.200 There may be some hangover from earnings. Ian King and 0:01:30.240 --> 0:01:35.520 I writing about how Jensen one's often resounding message didn't 0:01:35.600 --> 0:01:38.720 quite get through last week. But maybe there's some macros 0:01:38.760 --> 0:01:40.440 things going on here. We also have chip earnings to 0:01:40.520 --> 0:01:41.839 come Carrot we. 0:01:41.760 --> 0:01:44.000 Do, and let's just look broader for a moment ed 0:01:44.000 --> 0:01:46.400 in the world of chips and to one Ian King 0:01:46.440 --> 0:01:49.480 to help us, because Taiwan says Chinese chip companies are 0:01:49.520 --> 0:01:53.280 quote illegally poaching talent and trade secrets and are scoring 0:01:53.400 --> 0:01:57.000 a heated global rivalry that is developing the key technology 0:01:57.080 --> 0:01:59.840 used in phones and cars in ai Let's bring in 0:02:00.440 --> 0:02:05.320 inking and look, perhaps unsurprising, the tit for tat continues. 0:02:05.320 --> 0:02:06.120 What did you make of it? 0:02:07.120 --> 0:02:09.560 Yeah, I mean this is a recurring theme. We've seen 0:02:09.720 --> 0:02:12.280 US companies kind of dragged into this. And the biggest 0:02:12.320 --> 0:02:16.520 concern is this island is obviously a huge concentration of talent, 0:02:16.800 --> 0:02:19.600 very important talent in this industry. If you can't get 0:02:19.600 --> 0:02:22.200 the equipment, like a lot of the Chinese companies can't 0:02:22.240 --> 0:02:25.040 these days because of US trade sanctions, maybe they can 0:02:25.080 --> 0:02:27.080 get the expertise and build their own and that is 0:02:27.080 --> 0:02:30.960 a continuing concern. So you're see in companies like Nara 0:02:31.080 --> 0:02:34.480 in China and equivalent of applied materials being accused. 0:02:34.800 --> 0:02:38.960 The narrow case study outlined is that Narra supplies China's 0:02:39.040 --> 0:02:43.040 biggest chip maker or contract manufacturer, which is Semiconductor Manufacturing 0:02:43.320 --> 0:02:48.720 International or SMIC or SMICK. Extrapolate on that case study 0:02:48.760 --> 0:02:51.600 why this would be of particular a grievance to Taiwan. 0:02:51.760 --> 0:02:56.120 Yeah, I mean it's a way around their strengths because 0:02:56.639 --> 0:03:01.280 Snake is obviously a massive well would be COMPETITIVESMC. It's 0:03:01.320 --> 0:03:06.480 probably the best Chinese contract manufacturer. So what Taiwan really 0:03:06.480 --> 0:03:09.000 doesn't want is an erosion of its own talent based 0:03:09.200 --> 0:03:12.640 flowing into mainland China. And this is obviously a concern 0:03:12.919 --> 0:03:14.040 for the US as well. 0:03:14.400 --> 0:03:14.640 Well. 0:03:14.800 --> 0:03:18.200 That bigger concern for the US it's labeled as being 0:03:19.000 --> 0:03:23.240 China's potential access to technology that would give them an 0:03:23.240 --> 0:03:26.000 advantage from the military context. Is that kind of the 0:03:26.040 --> 0:03:27.800 core of US policy around. 0:03:27.520 --> 0:03:30.120 This it is, I mean, that's what it all started 0:03:30.160 --> 0:03:33.440 with under the Trump administration. The argument is that we 0:03:33.520 --> 0:03:37.640 need to stop China from getting access to advanced semiconductors 0:03:37.680 --> 0:03:40.240 because of what it will do for its military capabilities. 0:03:40.520 --> 0:03:44.080 But obviously since then it's flowed into other areas and 0:03:44.080 --> 0:03:47.680 made this a real focus of economic competition between the 0:03:47.720 --> 0:03:49.560 two countries, and. 0:03:49.440 --> 0:03:52.840 Not just two countries embroiled in because the US is 0:03:52.920 --> 0:03:54.520 leaning on others. 0:03:55.880 --> 0:03:58.960 Yeah, no, you're absolutely right, Carol. And what we've discovered 0:03:59.000 --> 0:04:02.440 along the way, and it's been along two or three years, 0:04:02.560 --> 0:04:06.320 is that unless Japan, unless the Netherlands in the form 0:04:06.320 --> 0:04:11.680 of ASML, restrict access to China of their key technologies, 0:04:11.720 --> 0:04:14.960 and perhaps there are workarounds, there are workarounds that China 0:04:14.960 --> 0:04:18.080 can make. And obviously what we're seeing with this Taiwanese 0:04:18.080 --> 0:04:22.120 situation is another attempt at work around. And if you Chinese, 0:04:22.279 --> 0:04:24.760 it's a legitimate thing to do. Would they want the 0:04:24.760 --> 0:04:28.479 technology for their economy, But obviously from the Western perspective, 0:04:28.520 --> 0:04:30.480 this is a worrying development. 0:04:30.880 --> 0:04:33.240 Bloomberg's in king, thank you very much. Now. 0:04:33.279 --> 0:04:37.080 With Taiwan's growing dominance in advanced chips, Bloomberg News took 0:04:37.080 --> 0:04:39.359 a deep dive into how the boom in that sector 0:04:39.839 --> 0:04:41.200 is affecting its economy. 0:04:41.360 --> 0:04:42.440 More broadly, have a listen. 0:04:43.600 --> 0:04:48.880 Taiwan is the home of our treasured partners. 0:04:49.600 --> 0:04:54.480 This is, in fact, where everything in video does begins. 0:04:55.240 --> 0:04:58.960 It's become a lynchpin of the global economy. Taiwan's dominance 0:04:58.960 --> 0:05:02.560 in advanced chips grown through the AI boom, creating fortunes 0:05:02.560 --> 0:05:06.320 in the process local industry billionaires and ninety percent riches 0:05:06.400 --> 0:05:09.960 since the introduction of CHATCHIBT November twenty twenty two. While 0:05:10.040 --> 0:05:13.720 stocks in Taipei have searched, property prices hit a record 0:05:13.800 --> 0:05:16.280 high in March, with the biggest gains in the city 0:05:16.320 --> 0:05:20.320 of Sinchu, the home of semiconductor giant TSMC. That wealth 0:05:20.360 --> 0:05:22.719 boom is raising fears some will be left behind. 0:05:23.279 --> 0:05:23.800 There is. 0:05:25.400 --> 0:05:29.560 A worsening of income distribution across the board, and I 0:05:29.600 --> 0:05:32.480 don't see any any measure to improve this at the 0:05:32.520 --> 0:05:35.640 current juncture. Parents take the brand I have in their 0:05:35.720 --> 0:05:39.680 kids buying apartments, and somebody's not sustainable because the next generation. 0:05:39.400 --> 0:05:40.240 Won't be able to do this. 0:05:40.839 --> 0:05:44.479 Taiwan's government, though, has set ambitious growth goals, seeking a 0:05:44.520 --> 0:05:48.159 one trillion dollar economy by twenty twenty eight, with GDP 0:05:48.320 --> 0:05:51.560 per capita set to surpass that of South Korea next year. 0:05:51.839 --> 0:05:55.240 Anna belt Ruler's Bloomberg News Now. 0:05:55.120 --> 0:05:56.200 More on geopolitics. 0:05:56.520 --> 0:06:00.559 China's top easy makeer BYD says it won't announce plant 0:06:00.600 --> 0:06:03.920 investment in Mexico until at least after the US election. 0:06:03.960 --> 0:06:04.840 It's all according to. 0:06:04.800 --> 0:06:09.200 Sources, this as shifting American policy forces global businesses into 0:06:09.320 --> 0:06:12.520 weight and C mode. That's keet the technology investors reaction 0:06:12.800 --> 0:06:16.240 and erathments with ours CIOC this investment advisory services. 0:06:16.640 --> 0:06:17.880 This is a theme manner. 0:06:18.320 --> 0:06:21.920 More companies feeling a lack of clarity from the US 0:06:22.000 --> 0:06:22.400 right now. 0:06:24.120 --> 0:06:27.360 Yes, it's a bit unusual to be this far into 0:06:27.400 --> 0:06:30.920 the election cycle with the election actually just around the corner, 0:06:31.040 --> 0:06:35.599 especially if you account voting not at the boot early voting, 0:06:36.680 --> 0:06:39.520 it can now have any clarity on the economic policies. 0:06:39.520 --> 0:06:43.600 And certainly our partners outside of the US are nervous, 0:06:43.640 --> 0:06:44.919 just as we may be here. 0:06:45.960 --> 0:06:49.560 Let's talk about what you've been seeing domestically. There is 0:06:49.600 --> 0:06:52.040 a lack of clarity because the election has not happened, 0:06:52.520 --> 0:06:57.960 but the policy leanings that we're hearing, for example, from 0:06:58.279 --> 0:07:02.320 now the Democratic ticket. All you've feeling that companies all 0:07:02.360 --> 0:07:06.279 you yourself as an investor changing how you look at 0:07:06.360 --> 0:07:11.440 companies based on US wanting well more geopolitical tension with 0:07:11.520 --> 0:07:12.480 China not less. 0:07:13.120 --> 0:07:16.080 Well, you know, China, I think is a special topic. 0:07:16.840 --> 0:07:19.520 I don't think it's I think it's party agnostic. I 0:07:19.520 --> 0:07:23.520 think that's one topic that Washington can agree on is 0:07:23.560 --> 0:07:25.960 being a bit hawkish towards China. And it has been 0:07:26.000 --> 0:07:29.360 this way for many years. So you know, when companies 0:07:29.400 --> 0:07:33.480 like Buid say that they want to wait until election 0:07:33.640 --> 0:07:37.320 is over, I wonder to myself if some of that 0:07:37.880 --> 0:07:41.040 is just the company saying that the election itself is 0:07:41.720 --> 0:07:44.160 a bit of an uncertainty for the markets, or if 0:07:44.200 --> 0:07:46.600 it truly is it believes that there's going to be 0:07:46.640 --> 0:07:49.200 a policy difference, because from where I sit, I don't 0:07:49.200 --> 0:07:52.720 think there is Both the Democratic parties, certainly it wasn't 0:07:52.800 --> 0:07:56.000 Harris at the time, it was President Biden as well 0:07:56.040 --> 0:07:59.600 as the Trump campaign. They've both been very hawkish, especially 0:07:59.600 --> 0:08:03.480 on evs that may be coming over from Mexico. So 0:08:03.560 --> 0:08:06.200 I think this is more noise than it is actually 0:08:06.240 --> 0:08:09.520 something that could be solidified into one party versus another 0:08:09.600 --> 0:08:12.800 being favorable to view Id or any other companies. 0:08:14.200 --> 0:08:17.920 And you see that the Chinese issues by partisan. 0:08:18.080 --> 0:08:23.200 Difficult, But is there a clear pro tech policy platform 0:08:23.400 --> 0:08:27.240 or pro tech investment for either outcome of this presidential 0:08:27.240 --> 0:08:28.200 election in the US. 0:08:29.560 --> 0:08:32.560 And I think that's the hard part is that we 0:08:32.640 --> 0:08:37.880 don't know. It's the hard part. There is some policy 0:08:38.040 --> 0:08:43.600 generalities that we've heard of from either actually both parties, 0:08:43.760 --> 0:08:47.920 but there are any specifics that could make investors say, Okay, 0:08:47.960 --> 0:08:51.839 this is pro tech. If anything, I think there's increased 0:08:51.920 --> 0:08:56.240 pressure on tech with AI and certainly chips right AI 0:08:56.400 --> 0:08:57.800 enabled enabling chips. 0:08:58.320 --> 0:08:59.079 There's a lot of. 0:08:59.360 --> 0:09:03.480 National suitcurity concerns and we've seen this in the last 0:09:03.520 --> 0:09:05.880 few years. This is not anything new, and I don't 0:09:05.880 --> 0:09:07.760 think it's going to be something that's going to be 0:09:08.000 --> 0:09:10.200 new after this election is over. 0:09:11.880 --> 0:09:15.080 In markets, there is seldom just one single headwind nor 0:09:15.200 --> 0:09:18.160 tail when at any one time there are multiple. Which 0:09:18.400 --> 0:09:21.280 is the greater focus for you right now? Central bank 0:09:21.320 --> 0:09:23.319 policy or November? 0:09:25.720 --> 0:09:26.040 For US? 0:09:26.160 --> 0:09:30.600 Right now, it is definitely central bank policy because there's 0:09:30.600 --> 0:09:32.920 so much uncertainty. There's a lot of noise we're trying 0:09:32.960 --> 0:09:36.320 to ignore. The FED, I think is more on the 0:09:36.440 --> 0:09:40.560 closer docket, especially with the September rate cuts at the 0:09:40.559 --> 0:09:44.760 market seem to be expecting. We are definitely expecting it. 0:09:44.760 --> 0:09:47.920 We've never been in the fifty basis point camp. We're 0:09:47.920 --> 0:09:50.240 still in the twenty five basis point camp. But we 0:09:50.320 --> 0:09:52.600 think that could be a start of a cycle. Twenty 0:09:52.600 --> 0:09:56.040 five basis points isn't that big, so you know, it's 0:09:56.080 --> 0:09:58.240 not going to make or break a company that needs 0:09:58.280 --> 0:10:00.840 to borrow, but a certainly a cycle would be a 0:10:00.880 --> 0:10:02.559 signal to the markets. 0:10:02.120 --> 0:10:04.960 And that could be the tie that lifts all boats 0:10:06.160 --> 0:10:07.040 tech certainly, but. 0:10:07.200 --> 0:10:10.120 Not just tech, but other areas of the market that 0:10:10.160 --> 0:10:12.560 have been suppressed for about eighteen months now. 0:10:12.840 --> 0:10:17.040 And all boats are not rising today in faederal falling. 0:10:17.120 --> 0:10:18.359 But ship's the hardest. 0:10:18.920 --> 0:10:22.120 Do you invest in AI and chips at this moment? 0:10:23.280 --> 0:10:25.320 I think that depends on your time frame. If you're 0:10:25.360 --> 0:10:29.040 a long term investor like US, Chips definitely has a 0:10:29.080 --> 0:10:32.280 place because this AI thing is not over. It is 0:10:32.320 --> 0:10:36.280 not a hype. It needs to get cleaned up over time. 0:10:36.360 --> 0:10:39.400 But if you're a long term investor, that's the infrastructure 0:10:39.600 --> 0:10:42.240 that is at the center of how you develop AI. 0:10:42.400 --> 0:10:44.280 So I think it can be. 0:10:44.240 --> 0:10:47.200 An exciting expect It might be a buying opportunity, but 0:10:47.240 --> 0:10:51.640 certainly for the long term. 0:10:50.400 --> 0:10:53.319 And there is anxiety in the market this morning, we're 0:10:53.320 --> 0:10:58.280 showing it on the screen. Were you left from Nvidia's 0:10:58.280 --> 0:11:01.400 earnings with confidence or are you still looking for more 0:11:01.480 --> 0:11:04.200 data on how long this investment cycle has to run. 0:11:06.040 --> 0:11:09.880 Certainly more data, But I wasn't pessimistic about it. Look, 0:11:09.920 --> 0:11:13.200 I mean they beat right, it was just not good 0:11:13.320 --> 0:11:15.680 enough for the market. That tells you more about the 0:11:15.760 --> 0:11:19.559 valuations of the markets than about the company itself. So 0:11:19.640 --> 0:11:22.120 we're not pessimistic. But at the same time, you sort 0:11:22.120 --> 0:11:23.720 of wonder how long. 0:11:23.559 --> 0:11:24.640 Does this have to go? 0:11:25.480 --> 0:11:25.760 Right? 0:11:26.120 --> 0:11:30.080 And they have great market share right now, but when 0:11:30.240 --> 0:11:33.800 do the companies like Facebook and other companies that they 0:11:33.840 --> 0:11:36.400 rely on for their revenues say enough is enough? And 0:11:36.440 --> 0:11:38.959 that is the uncertainty that I think is coming down 0:11:39.000 --> 0:11:41.359 the line, maybe in twenty twenty five, twenty twenty. 0:11:41.080 --> 0:11:46.440 Six, Anna Rathan COIOCBIS Investment of Advisory Services. 0:11:46.440 --> 0:11:47.319 Thank you very much so. 0:11:47.440 --> 0:11:51.200 Coming up on the show, Brazilian judges ruling against Mask, 0:11:51.480 --> 0:11:55.560 upholding a nationwide ban against his social media platform X. 0:11:55.760 --> 0:11:58.400 We have the reports from the ground next and take 0:11:58.400 --> 0:11:59.080 a look at Intel. 0:11:59.120 --> 0:11:59.280 Cara. 0:11:59.400 --> 0:12:03.280 Investors are basically bracing for more information the chip makers 0:12:03.320 --> 0:12:07.760 presenting the city Global Technology Conference tomorrow and the options 0:12:07.840 --> 0:12:10.720 market pricing in a swing of around five percent in 0:12:10.760 --> 0:12:12.400 either direction on whatever's said. 0:12:12.440 --> 0:12:15.599 Reminded. Last week, Bloomberg reported that intels. 0:12:15.240 --> 0:12:19.800 Us its bankers to find strategic options like separating out 0:12:20.000 --> 0:12:22.240 its foundry business to start caught up with the chip 0:12:22.280 --> 0:12:24.440 slump down more than six percent in the session. 0:12:24.559 --> 0:12:27.040 We'll be right back. This is Bloomberg Technology. 0:12:38.840 --> 0:12:40.679 Quick check on the markets for you, because we are 0:12:40.720 --> 0:12:42.880 in sell off mode once again, as we were on 0:12:42.920 --> 0:12:45.440 August the first. We are down significantly on the Nasdaq 0:12:45.480 --> 0:12:48.199 and indeed across some key chip players. We are wiping 0:12:48.200 --> 0:12:50.600 off one hundred and ninety billion dollars in market cap 0:12:50.640 --> 0:12:51.200 from and Video. 0:12:51.200 --> 0:12:52.080 At the moment, the worst. 0:12:52.000 --> 0:12:55.240 Day since August the first, Broadcom has its earnings. All 0:12:55.280 --> 0:12:57.120 eyes were down more than four and a half percent. 0:12:57.559 --> 0:13:00.800 Apple off by more than one let's call it almost 0:13:00.840 --> 0:13:03.280 two percent, but pressure across the market. 0:13:03.360 --> 0:13:06.160 We will keep you attuned to it. But let's dig into. 0:13:06.040 --> 0:13:08.240 Some individual stories for you in the technology world. And 0:13:08.240 --> 0:13:11.200 Brazil Supreme Court upheld in order to banning on Mousqu's 0:13:11.520 --> 0:13:14.480 social network X as part of efforts to combat fake 0:13:14.520 --> 0:13:17.319 news and hate speech. Now Brazil joins China, Russia and 0:13:17.360 --> 0:13:21.280 North Korea in banning access to certain social networks mean 0:13:21.280 --> 0:13:25.760 most Daniel Cavallo is with us covering from Brazil and look, 0:13:25.840 --> 0:13:29.160 this really is Supreme Court winning out here at the moment, Daniel. 0:13:30.520 --> 0:13:35.079 Yes, well, happic days here in Brazil. Let me tell 0:13:35.120 --> 0:13:39.400 you how this story started and beginning since the beginning 0:13:39.400 --> 0:13:42.640 of the year. Morai is a justice from the Supreme 0:13:42.640 --> 0:13:46.240 Court Periance zim edition. Maris has ordered the block of 0:13:46.360 --> 0:13:52.240 some X accounts that were spread in hate speech and mask. 0:13:52.760 --> 0:13:56.880 He wouldn't comply with this disorder. Disorder so WHATRA has 0:13:56.920 --> 0:14:01.719 begun to impose fines on X. They didn't pay, so 0:14:02.520 --> 0:14:06.839 Brazil's justice was looking for who was the legal representative 0:14:06.880 --> 0:14:09.880 of the company in Brazil. I'm surprised there was nobody 0:14:10.280 --> 0:14:15.280 and this position. So last week, just as Maria said 0:14:15.400 --> 0:14:20.240 that Twitter would have twenty four hours to nominate someone 0:14:20.400 --> 0:14:24.000 for this position, it didn't happen. So Friday night he 0:14:24.200 --> 0:14:26.040 ordered the block of X in Brazil. 0:14:27.880 --> 0:14:31.240 There are some outstanding questions Daniel about one of Elamus's 0:14:31.240 --> 0:14:35.120 other companies, which is SpaceX and it's starlink satellite based 0:14:35.120 --> 0:14:38.720 internet service. What are the considerations from the courts around 0:14:38.720 --> 0:14:40.080 Starlink and what they might do. 0:14:41.960 --> 0:14:45.000 Well, what I has ordered the block of bank accounts 0:14:45.040 --> 0:14:48.520 of Starlink because as X wasn't paying for the fines 0:14:48.560 --> 0:14:53.680 that was that were in posed for the company. What 0:14:53.800 --> 0:14:57.080 I said, Okay, so we're going to block the accounts 0:14:57.120 --> 0:15:01.520 of another company in the country. And it's very controversial 0:15:01.640 --> 0:15:07.040 here in Brazil because there are two different companies. Yesterday, 0:15:07.520 --> 0:15:11.800 the panel of the Supreme Court, they confirmed the order 0:15:11.960 --> 0:15:16.520 to ban X in Brazil, but they didn't discuss the 0:15:16.640 --> 0:15:19.680 startling part of the problem. It's yet to come. 0:15:21.000 --> 0:15:23.840 Bloomberg, Daniel Carvalio, thank you very much for some on 0:15:23.840 --> 0:15:27.160 the ground reporting. Another big story we're tracking is in 0:15:27.160 --> 0:15:30.480 the world of smartphones. Next week, Apple unveils its latest 0:15:30.560 --> 0:15:34.200 iPhone lineup, another new tech, but only a few hours later, 0:15:34.760 --> 0:15:38.080 Huawei will do exactly the same for its products, setting 0:15:38.080 --> 0:15:41.760 the stage for a smartphone few Let's discuss with Bloomberg 0:15:41.760 --> 0:15:46.080 Technology editor Dana Wohlman and in the Technology report a 0:15:46.160 --> 0:15:50.560 toolkit events are key. The difference with Huawei is that 0:15:50.640 --> 0:15:53.480 this is about products largely for the Chinese market. But 0:15:53.520 --> 0:15:57.000 my goodness, the timing is curious, isn't it. 0:15:57.000 --> 0:15:59.120 It is and normally, this is the sort of move 0:15:59.160 --> 0:16:03.840 that Apple would take scheduling really cheekly scheduling an event 0:16:04.200 --> 0:16:07.000 right on the heels of a competitors event. So for 0:16:07.080 --> 0:16:09.160 Huawei to do that to Apple is almost like Huawei 0:16:09.160 --> 0:16:11.000 out appling Apple in this case. 0:16:11.920 --> 0:16:16.400 Talking of out appling, they talk about an epolk making product, 0:16:16.920 --> 0:16:20.160 everyone thinks it's going to be a several times folding phone. 0:16:20.720 --> 0:16:23.560 How much does that play to the Chinese market for Huawei? 0:16:24.720 --> 0:16:27.920 So this would really be building on some tremendous momentum 0:16:27.960 --> 0:16:31.400 for Huawei. According to IDC data from the most recent quarter, 0:16:31.800 --> 0:16:36.000 Huawei made it into the top five for Chinese smartphone shipments, 0:16:36.040 --> 0:16:40.120 knocking out Apple, which was quite extraordinary. And so this 0:16:40.160 --> 0:16:43.440 would really be building on Huawei's success in its home country. 0:16:43.720 --> 0:16:45.800 And as you say, the device is rumored to have 0:16:46.160 --> 0:16:49.240 foldable creases in not just one spot, but two spots, 0:16:49.720 --> 0:16:51.840 and that would be a really interesting form factor. It 0:16:51.840 --> 0:16:53.560 would be a first of its kind that ships to 0:16:53.600 --> 0:16:56.680 the public. And what that really means in Layman's terms, 0:16:56.760 --> 0:16:59.200 is you can get a much bigger, more tablet laptop 0:16:59.280 --> 0:17:03.520 size screen that can compress compactly when folded into the 0:17:03.560 --> 0:17:06.200 size of a reasonably sized smartphone. 0:17:06.840 --> 0:17:09.400 I've been invited to the Apple event which is here 0:17:09.400 --> 0:17:12.840 in California on September ninth. It had been, according to 0:17:12.880 --> 0:17:16.520 our reporting September tenth, but you've got the first US 0:17:16.600 --> 0:17:20.160 presidential debate on the tenth, so it's a choco block calendar. 0:17:21.080 --> 0:17:24.240 Just recap the Apple side, what we expect from them, 0:17:24.240 --> 0:17:27.240 and what Bloomberg's reporting tells us about the product lineup. 0:17:27.840 --> 0:17:30.280 So according to my colleague Mark German, the devices will 0:17:30.320 --> 0:17:34.200 not physically, in an exterior way look much different from 0:17:34.280 --> 0:17:36.679 previous iPhones, and to some consumers that may come as 0:17:36.680 --> 0:17:40.240 a disappointment. The iPhone hasn't seen a major redesign since 0:17:40.280 --> 0:17:41.960 twenty twenty, so a lot of people would think the 0:17:42.000 --> 0:17:45.520 iPhone is due for something just more striking looking. But 0:17:45.600 --> 0:17:48.000 indeed one of the biggest selling points will be the 0:17:48.000 --> 0:17:51.040 suite of new AI features, and even those, according to Mark, 0:17:51.359 --> 0:17:55.000 will have a slower rollout than consumers may have liked 0:17:55.000 --> 0:17:57.120 and possibly even Apple would have preferred. 0:17:57.680 --> 0:17:59.560 Dana Wollman keeping us up to speed. 0:18:06.520 --> 0:18:11.280 Hewlett Packard Enterprise HPE says it intends to pursue the 0:18:11.320 --> 0:18:14.480 four billion dollar damages claim in London against the estate 0:18:14.520 --> 0:18:18.080 of the recently deceased British tech tycoon Mike Lynch. I 0:18:18.160 --> 0:18:21.080 mean most Jonathan Browning is here with more. This is 0:18:21.119 --> 0:18:23.359 a controversial and difficult decision, I. 0:18:23.240 --> 0:18:25.800 Imagine it is. 0:18:26.320 --> 0:18:30.199 And yet Hewlett Packard Enterprise, which is the entity that 0:18:30.680 --> 0:18:35.040 has responsibility for the British case, has said that it 0:18:35.160 --> 0:18:40.760 intends to pursue this claim to the end. Just to 0:18:40.800 --> 0:18:44.200 distinguish between the two cases, there was a US criminal 0:18:44.280 --> 0:18:50.280 case that Mike Lynch was found not guilty in, and 0:18:50.320 --> 0:18:52.399 then there was the British case in London. 0:18:52.800 --> 0:18:53.960 And in the London. 0:18:53.640 --> 0:18:58.240 Case, Hewlett Packard sued Mike Lynch and his former chief 0:18:58.280 --> 0:19:02.480 financial officer over the collapse of Autonomy, the software company, 0:19:02.520 --> 0:19:06.879 and they found and the judge found that Mike Lynch 0:19:07.400 --> 0:19:13.000 had fraudulently boosted the value of Autonomy. We are now 0:19:13.040 --> 0:19:15.440 at the point where we are waiting to see whether 0:19:15.480 --> 0:19:20.080 those damages can be collected, and HP yesterday said they 0:19:20.119 --> 0:19:24.200 intend to do so. It is little more than one 0:19:24.320 --> 0:19:27.960 week since Mike Lynch's body and that of his daughter 0:19:28.040 --> 0:19:32.960 were recovered from the sunken yacht off the coast of Italy. 0:19:33.640 --> 0:19:38.320 That it's an extraordinary story. Jonathan, could you just explain 0:19:38.440 --> 0:19:42.080 kind of procedurally, what is happening at the moment with 0:19:42.200 --> 0:19:45.679 the investigation of what happened and now this legal challenge 0:19:45.720 --> 0:19:50.800 at the same time. Yeah, So in Italy the prosecutor 0:19:50.800 --> 0:19:54.920 has opened the preliminary inquiry. They are looking at potential 0:19:54.960 --> 0:19:59.840 manslaughter charges relating to the foundering of this luxury yacht, 0:19:59.840 --> 0:20:03.639 the Asian, that sank in such a short period of time, 0:20:03.760 --> 0:20:07.680 when when severe weather struck, and they'll be looking at 0:20:08.359 --> 0:20:12.439 human error and an all host of other issues. But 0:20:12.480 --> 0:20:16.399 as you say, it's it's it's just a few days 0:20:16.440 --> 0:20:19.560 since that happened. And then and then HPE comes out 0:20:19.600 --> 0:20:25.119 with their own statement that in in London they will 0:20:25.160 --> 0:20:27.880 they will carry on the case. And lawyers will tell 0:20:27.920 --> 0:20:30.399 you that in a in a in a British case, 0:20:31.080 --> 0:20:35.160 the claim can fall to the estate in the event 0:20:35.200 --> 0:20:35.680 of a death. 0:20:35.800 --> 0:20:37.160 And so in this case. 0:20:38.480 --> 0:20:42.560 HPE will be pursuing the claim against the estate of 0:20:42.640 --> 0:20:50.399 Mike Clinch, that is his recently bereaved widow who was 0:20:50.440 --> 0:20:53.760 on the boat and managed to escape, as well as 0:20:54.280 --> 0:20:56.920 his his daughter who wasn't on board. 0:20:57.520 --> 0:20:59.960 And as your story says, that men like you to 0:21:00.040 --> 0:21:03.800 face criticism going ahead with the claim, but Hewlett Packard 0:21:03.880 --> 0:21:05.760 Enterprise has its earnings. 0:21:06.040 --> 0:21:08.040 Hate to bring it back to that, but has its 0:21:08.040 --> 0:21:08.840 earnings this week. 0:21:08.920 --> 0:21:11.360 They were likely to face questions, Jonathan, So maybe they're 0:21:11.400 --> 0:21:12.120 getting ahead of that. 0:21:13.640 --> 0:21:13.880 Yes. 0:21:13.960 --> 0:21:19.560 I think that's probably the likely the likely reason why 0:21:19.640 --> 0:21:23.520 we know this now because the simple fact is that 0:21:23.840 --> 0:21:31.080 the actual court case is still weeks from conclusion. Bloomberg, 0:21:31.200 --> 0:21:35.600 Jonathan Browning, thank you very much for your reporting. 0:21:40.800 --> 0:21:43.119 Welcome back to Bloomberg Technology. I'm Caroline Hide in New 0:21:43.200 --> 0:21:44.040 York and. 0:21:44.000 --> 0:21:45.719 I'm Ed Ludlow in San Francisco. 0:21:46.040 --> 0:21:48.120 And it is a down day to start this month 0:21:48.119 --> 0:21:50.680 of September, post Labor Day, the jolt comes back. 0:21:50.720 --> 0:21:51.640 We are risk off. 0:21:51.680 --> 0:21:53.080 We're just going to move on from this board to 0:21:53.119 --> 0:21:55.200 what is happening on the Nasdaq more broadly at the moment, 0:21:55.240 --> 0:21:58.040 because we are off by more than two percent at 0:21:58.040 --> 0:22:00.000 the moment on the Nasdaq one hundred and in life 0:22:00.040 --> 0:22:02.919 large part it is the chip names that are dragging 0:22:03.000 --> 0:22:04.920 us lower. I'm looking at a sell off that means 0:22:05.000 --> 0:22:07.160 risk aversion that means money pours into the bomb market. 0:22:07.240 --> 0:22:10.120 Tenure yields come down some five basis points. Bitcoin as 0:22:10.160 --> 0:22:13.840 well suffering from the risk pushback. We're down by two 0:22:13.840 --> 0:22:16.360 percentage points. Move on the individual moves that I'm having 0:22:16.400 --> 0:22:18.720 a quick look at for you are some European names. Look, 0:22:18.880 --> 0:22:21.160 Europe has just closed and we have seen SAP under 0:22:21.160 --> 0:22:23.680 pressure not that much off by eight ten percent. 0:22:23.760 --> 0:22:25.080 The CTO steps. 0:22:24.680 --> 0:22:28.680 Down for some inappropriate behavior we understand had a previous role. 0:22:29.000 --> 0:22:31.960 We see Delivery Hero down by one point three percent. Again, 0:22:32.320 --> 0:22:34.879