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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybreak Asia podcast. I'm Brian Curtis

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Speaker 2: along with Doug Krisner. Join us each day for the

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Speaker 2: stories making news and moving markets in the Asia Pacific.

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Speaker 2: You can subscribe to the show anywhere you get your

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Speaker 2: podcasts and always on Bloomberg Radio, the Bloomberg Terminal, and

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Speaker 2: the Bloomberg Business app.

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Speaker 3: Later this year, Apple will deliver some of its new

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Speaker 3: AI features using data centers engineered with Apple's in house

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Speaker 3: micro processors. This is part of a sweeping plan to

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Speaker 3: infuse Apple devices with AI capabilities, Sources telling Bloomberg, the

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Speaker 3: company will place its high end M two Ultra chips

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Speaker 3: in its cloud computing services. Those chips debuted last year

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Speaker 3: as part of the MacPro and Mac Studio computers. Simple

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Speaker 3: AI TESK will be processed directly on on Apples, computers

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Speaker 3: and mobile devices. Apple is expecting to lay out an

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Speaker 3: ambitious AI strategy at the Worldwide Developers Conference that will

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Speaker 3: happen on June tenth.

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Speaker 2: Brian, all right, let's bring in Mark German for a

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Speaker 2: closer look at this story. Bloomberg Chief Global Technology correspondent

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Speaker 2: and one of the experts on Apple mark. So this

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Speaker 2: is in data centers. How does this actually work and

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Speaker 2: compare with AI inference?

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Speaker 4: Very good question. So Apple's developing multiple large language models.

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Speaker 4: Some of the lms are going to run on the

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Speaker 4: devices themselves, so in the iPhone and the iPad, in

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Speaker 4: the Mac, in the Apple Watch. Another set of the

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Speaker 4: lms that Apple's developed are going to run on the

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Speaker 4: cloud itself. Why is that important, Well, some of these

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Speaker 4: large models can't actually fit or run on the processors

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Speaker 4: in the phone. You need more space, you need more

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Speaker 4: advanced processing power, go to the cloud. And so what

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Speaker 4: Apple's done is they outfitted some of their data centers

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Speaker 4: with M two Ultras, that's currently their highest end processors

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Speaker 4: with the biggest AI capabilities and processing horsepower. And so

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Speaker 4: the more advanced features like summarizing a lot of text,

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Speaker 4: image and text generation, those are going to rely on

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Speaker 4: the data centers, whereas simpler tasks are going to involve

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Speaker 4: running directly on the phone themselves.

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Speaker 3: So in terms of the chip, I'm going to imagine

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Speaker 3: that the chip is being manufactured by TSMC, is Apple

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Speaker 3: partnering with another firm. In terms of the construction of

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Speaker 3: the actual server itself.

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Speaker 5: Well, these chips, the M two Ultras, These shifts actually

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Speaker 5: last June, so these have been on the marketplace for

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Speaker 5: a while. And yeah, as you know, TSMC is the

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Speaker 5: exclusive manufacturing manufacturing partner for Apple's chips at this point, right,

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Speaker 5: so those are TSMC made. I don't expect this to

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Speaker 5: be a big boon to TSMC. This is part of

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Speaker 5: the normal cadence of manufacturing for these chips. Anyways, there's

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Speaker 5: a new chip that's the M four that Apple announced

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Speaker 5: in the iPad pro earlier this week. A version of

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Speaker 5: that next year. Later next year will come to the

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Speaker 5: data centers for more increases in processing power as they

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Speaker 5: expand the cloud performance.

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Speaker 2: Here, perhaps we can talk a little bit more about

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Speaker 2: these AI type of chips. But I also wanted to

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Speaker 2: get to a comment by the ARM CEO, Renee Haas

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Speaker 2: he talked about how geopolitics has hurt Apple in China

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Speaker 2: and that local brands are getting featured there and we

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Speaker 2: understand that, but he also said that they're not going

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Speaker 2: to seed that ground. And I'm wondering how that translates

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Speaker 2: and what it translates into. Does that mean that Apple

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Speaker 2: might get more aggressive on pricing in China?

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Speaker 4: Well to that end, here's the good news for Apple

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Speaker 4: and China. They've been losing some steam there, they've been

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Speaker 4: losing some share there, but they've done nothing to stop

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Speaker 4: the bleeding. They haven't pulled any lever available to them

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Speaker 4: to try to turn things around there, right, And so

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Speaker 4: the good news is it's very likely as they start

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Speaker 4: pulling those levers, you're going to start seeing a turnaround. Pricing,

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Speaker 4: lower end devices, colors, promotions, new financing plans, particular to

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Speaker 4: the Chinese market, those are all things you can see

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Speaker 4: Apple try to engage with over the coming months.

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Speaker 3: So, Mark, if we circle back and talk a little

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Speaker 3: bit about Apple's approach to artificial intelligence. We know that Microsoft,

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Speaker 3: for example, has been working with open Ai. In fact,

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Speaker 3: they have a big position in the company. And then

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Speaker 3: down the road in Silicon Valley you've got Google, Alphabet

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Speaker 3: really in partnership with Anthropic along with Amazon. Is Apple

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Speaker 3: choosing to partner with anybody when it comes to artificial intelligence.

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Speaker 4: So the models that I described, the cloud model as

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Speaker 4: well as the in house model, those are developed internally

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Speaker 4: at Apple, and so those are Apple models. However, Apple

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Speaker 4: has not developed its own gender Todai chatbot things like

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Speaker 4: Google Gemini, things like open AI's chat GPT. That's actually

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Speaker 4: where Gemini from Google and open i come into play.

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Speaker 4: Apple is in talks with both of those companies to

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Speaker 4: partner with them to implement their chatbots zeep into the

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Speaker 4: new version of iOS and the new iPhones coming in

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Speaker 4: the fall in September, I expect Apple to ultimately partner

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Speaker 4: with open Ai. Talks have advanced, they've intensified. I've reported

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Speaker 4: a couple of weeks ago, and at this point it

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Speaker 4: seems pretty likely that there's going to be a deal

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Speaker 4: with open Ai reached by June when this announcement is expected.

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Speaker 4: And it's also possible becomes you an agreement with Google

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Speaker 4: at some point too.

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Speaker 2: And I also wanted to ask you about this ad

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Speaker 2: that they now have that Apple now has said we'll

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Speaker 2: not run on television about the iPad and the destruction

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Speaker 2: of a lot of creative tools let's say the human

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Speaker 2: condition has been using for thousands of years into a iPad.

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Speaker 2: Just your thoughts about the thinking behind that and perhaps

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Speaker 2: where and how it went wrong.

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Speaker 4: I see exactly what Apple was trying to do, but

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Speaker 4: here's a very simplistic perspective. They are trying to show

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Speaker 4: that the iPad is super thin, and they're using a

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Speaker 4: you know, an industrial press machine to squeeze in all

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Speaker 4: the items that are in a that people can do

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Speaker 4: on the iPad, the physical items, but squeeze it into

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Speaker 4: that really thin five millimeter device. So that's what they

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Speaker 4: tried to do. How it appeared Apple's destroying everything that

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Speaker 4: people love from the real world in favor of using

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Speaker 4: the iPad. Not a great look. Obviously they missed the mark.

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Speaker 4: If they have come to that conclusion beforehand, maybe they

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Speaker 4: wouldn't have done it this way. I think it was

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Speaker 4: a ridiculous move that this ad even made it to market.

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Speaker 4: But I guess this is like the third apology in

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Speaker 4: the history of Apple. So we'll take this one until

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Speaker 4: the next start, think fifteen years from now.

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Speaker 3: So give us your assessment of the new iPad. I mean,

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Speaker 3: it's been a while since they've updated this product line.

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Speaker 3: I mean, what's your take.

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Speaker 4: It's a spec bump. It looks better, it's cooler, it

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Speaker 4: doesn't do anything new, it doesn't change the iPad story.

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Speaker 4: They still need to upgrade the software on this thing

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Speaker 4: to make it more like a macroplacement or a laptop.

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Speaker 4: Success or it doesn't do anything differently than the last iPad,

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Speaker 4: the iPad before that, or the ten models before that.

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Speaker 4: So the hardware is awesome, but the hardware on the

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Speaker 4: iPad has always been awesome. The problem's always been the software.

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Speaker 4: This doesn't change that one bit.

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Speaker 2: Yeah, so the iPad was positioned between the phone and

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Speaker 2: the laptop, but a lot closer to the phone than

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Speaker 2: the phone got bigger. So, as I've read from a

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Speaker 2: lot of the stuff that you've written, you know this

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Speaker 2: is an effort going in the other direction. How much

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Speaker 2: further does it need to go to get closer to

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Speaker 2: a you know, to a laptop without actually trying to

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Speaker 2: become one.

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Speaker 4: Well, I'll answer it this way. It needs to become

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Speaker 4: a laptop. They need to go all the way or

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Speaker 4: this device.

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Speaker 2: And why do you need a laptop? Then if you've

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Speaker 2: if you've got an iPad that is a laptop.

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Speaker 4: Well, the Mac line isn't doing so hot, the iPad

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Speaker 4: line is not doing so hot. You should create, if

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Speaker 4: you're Apple, the best version of the iPad that you

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Speaker 4: can make, and they're just holding that product back. So

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Speaker 4: what if it kills the laptop? Something's going to kill

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Speaker 4: the laptop? One day it might as well be Apple.

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Speaker 4: But right now they're just kind of screwing around and

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Speaker 4: creating the Twitter device. They've moved way past that. The

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Speaker 4: market has moved way past that. It's time to kill

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Speaker 4: the laptop or make this a laptop replacement, make the

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Speaker 4: laptops even better.

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Speaker 2: German tells it like it is, Mark, thank you for

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Speaker 2: joining us. Some very interesting comments there, Mark German, Bloomberg,

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Speaker 2: Chief Global Technology Correspondent. The Security is In Exchange Commission

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Speaker 2: is launching a probe into claims made by Boeing about

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Speaker 2: its own safety practices. This after a January accident aboard

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Speaker 2: one of the seven thirty seven Max nine planes. Joining

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Speaker 2: us now is Julie Johnson, Bloomberg, Senior Aerospace reporter. So

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Speaker 2: what is it that the SEC is particularly concerned about

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Speaker 2: that perhaps these comments about the safety record were inaccurate

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Speaker 2: or went too far.

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Speaker 1: Well, that's what we'll find out or or not. We'd

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Speaker 1: love to know a little bit more about what they're

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Speaker 1: what they're looking into, and whether whether the company made

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Speaker 1: maybe made assurances to investors. I mean, they've been stressing

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Speaker 1: safety publicly ever since the twenty nineteen you know, accidents

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Speaker 1: and global grounding. So it's you know, I think the

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Speaker 1: regulator regulators will want to know whether Boeing may be

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Speaker 1: over sold what was going on in its own factories,

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Speaker 1: but the actual details we don't have.

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Speaker 3: So this is the panel that brew off that Max nine,

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Speaker 3: the Alaska Airlines flight AM I right about that, and

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Speaker 3: since that time, there have been a lot of other

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Speaker 3: issues that the company has had to address regarding things

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Speaker 3: like safety and design and manufacturing.

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Speaker 1: Yeah, that that January incident really sort of precipitated this

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Speaker 1: whole crisis, and so Boeing's being investigated on a number

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Speaker 1: of fund fronts. You've got the FAA and NTSB, you know,

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Speaker 1: looking into what happened with that accident, what went wrong

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Speaker 1: within Boeing's own factories. And then the FAA has come

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Speaker 1: down really hard on on Boeing over the last few

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Speaker 1: months and has its auditors, you know, in Boeing's factories

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Speaker 1: and looking very closely at quality controls and safety and

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Speaker 1: Boeing's Boeing's got a critical report coming up on that.

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Speaker 1: And then there's a criminal investigation launched by the Justice

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Speaker 1: Department and the grand jury in Seattle. So it's it's

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Speaker 1: really been something.

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Speaker 2: Else for Boeing Julie. Is there any suggestion of a

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Speaker 2: whistleblower on this?

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Speaker 1: I don't think so. I think this is more looking

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Speaker 1: at whether the company's private practices uh were in line

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Speaker 1: with what it was saying publicly around what was going

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Speaker 1: on in its factory. And just as a reminder with

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Speaker 1: the SEC, we don't know of any allegations of wrongdoing here.

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Speaker 1: And these enforced enforcement actions don't you know, don't always

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Speaker 1: flow from investigations, but quite often the agency can levy

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Speaker 1: finds against the company or the corporate officers.

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Speaker 3: So it's not just going from might understand. I mean

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Speaker 3: Spirit Arrow Systems, which is the company that manu factiously

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Speaker 3: the wing assembly the fuselage. That company also has some exposure.

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Speaker 3: But are they going to be swept up in this

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Speaker 3: SEC probe?

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Speaker 2: Do you think yes?

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Speaker 1: Actually, one of the interesting things is that we found

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Speaker 1: out about this in part because Spirit had a very

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Speaker 1: detailed explanation of the various probes and subpoenas that it's

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Speaker 1: facing in a quarterly financial statement that it made on Tuesday,

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Speaker 1: and they disclosed that the SEC had subpoened them, you know,

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Speaker 1: related to the seven thirty seven MAX issues in the

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Speaker 1: Alaska incident. They didn't provide a whole lot of details,

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Speaker 1: but it was pretty clear the agency was looking hard

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Speaker 1: at Spirit and they're so closely tied to Boeing on

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Speaker 1: this that you know that it made sense that Boeing

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Speaker 1: was also, you know, a target.

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Speaker 2: Julie, do we have any new information about exactly what's

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Speaker 2: happening with the chief executive officer position at Going Oh.

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Speaker 1: I'd love to know what's going on there. The board

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Speaker 1: is searching for, you know, a new CEO, and they

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Speaker 1: launched that that search back in March, and it's being

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Speaker 1: led by the chairman, Steve Mallenkopf and Dennis or sorry,

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Speaker 1: Tennis Ballenberg is.

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Speaker 4: The former CEO.

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Speaker 1: Dave Yeah, Dave Calhoun, the current CEO is is staying

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Speaker 1: on until a successor is found. And the board's sort

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Speaker 1: of given itself a lot of leeway with that search

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Speaker 1: and by saying, you know that Calhoun will be around

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Speaker 1: through the end of the year, but you get the

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Speaker 1: sense that they would like to get this done sooner

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Speaker 1: rather than later, just because right now it's it's a

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Speaker 1: bad time to be you know, I'm in transition to your.

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Speaker 3: Leader, and it's a bad time for the airlines that

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Speaker 3: have been waiting for new aircraft. I mean, that's the

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Speaker 3: other part of the story, that production has come to

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Speaker 3: a virtual standstill and you have many airlines that have

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Speaker 3: been unable to take delivery of new aircraft.

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Speaker 1: Yeah, that's so true. It's it really has become a

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Speaker 1: huge sort of pressure point for the whole industry. And

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Speaker 1: you've seen a lot of frustration voiced by the US

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Speaker 1: carriers as well. And you know, I mean, Boeing's got

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Speaker 1: its own problems, but everybody's struggling. I mean, Airbus is

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Speaker 1: doing better, but they're not They're not hitting delivery targets either.

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Speaker 1: So it's just a bad time for an airline, you

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Speaker 1: know that that's out there looking for planes.

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Speaker 2: I'm kind of curious something that you alluded to moments ago,

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Speaker 2: but I'd like to hear more on it about the

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Speaker 2: coordination and or differences between the SEC and the FAA

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Speaker 2: when it comes to Boeing.

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Speaker 1: Yeah, that's a that's a really great question. I wish

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Speaker 1: I knew what was going on behind the scenes, but

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Speaker 1: you know, because sometimes we just we get our information

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Speaker 1: sort of bit by bit and we don't have the

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Speaker 1: entire picture. But you know, the FAA got sort of

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Speaker 1: a black eye for certifying the seven thirty seven max

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Speaker 1: and standing by Boeing back in twenty nineteen when these

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Speaker 1: tragedies happened and some of Boeing's shortcomings were made public.

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Speaker 1: And so they've been this time around. They've just been very,

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Speaker 1: very diligent. And I think that the SEC action is

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Speaker 1: something you would expect. And it's an election year in

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Speaker 1: the US, by the way, so everybody's going to want to,

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Speaker 1: you know, stay on top of this.

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Speaker 3: This situation one of the interesting things and maybe you

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Speaker 3: can weigh in very quickly on this, Julie. One of

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Speaker 3: the very interesting things about this industry, and I'm talking

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Speaker 3: about aerospace as a real rates to commercial aircraft, that

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Speaker 3: these manufacturers are almost self regulated. They are expected to

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Speaker 3: do a fair amount of the monitoring that you would

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Speaker 3: expect a federal agency would do during the manufacturing process.

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Speaker 1: Oh, I know, it's a real conundrum for everybody, and

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Speaker 1: the FAA is not a huge agency. This is part

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Speaker 1: of the problem. And to fully fund them to go back,

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Speaker 1: you know to the days when they were climbing all

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Speaker 1: over Boeing's factories would be you know, that takes a

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Speaker 1: lot of money, and US Congress has been cutting, you know,

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Speaker 1: cutting their bundt for years. So yeah, it's that complicated, Yes,

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Speaker 1: sure does.

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Speaker 2: Julie, thank you so much for joining us. Julie Johnson

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Speaker 2: Bloomberg senior aerospace reporter. Joining us now in our studios

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Speaker 2: for a closer look at markets is Richard Harris, CEO

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Speaker 2: of Port Shelter Investment Management. Richard, thanks for coming into

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Speaker 2: the studios. So May has been a reasonably good period

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Speaker 2: here for both stocks and bonds, and we're waiting on

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Speaker 2: confirmation of any kind of economic slowdown. And the reason

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Speaker 2: why that's being seen as good news, obviously is it

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Speaker 2: might take a little pressure off the FED. But when

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Speaker 2: you get these like we had the claims that Doug

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Speaker 2: mentioned earlier, claims jumping a little bit, you wonder whether

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Speaker 2: or not this is a welcome cooling of the labor

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Speaker 2: market or some sort of unwelcome development, like a more

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Speaker 2: serious slowdown.

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Speaker 6: Your thoughts, well, well, the market seems to have the

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Speaker 6: emphasis of the moment of eat, drink and be merry

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Speaker 6: for tomorrow. We die because we have good news and

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Speaker 6: the markets go up. We have slightly bad news and

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Speaker 6: the markets go down. I do think that unemployment is

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Speaker 6: going to be a very big indicator looking out forward,

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Speaker 6: because we are relying on consumer growth driving earnings in

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Speaker 6: the market. So yes, that's a very big narrative going through.

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Speaker 6: But I'm not sure that we're actually there yet. I

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Speaker 6: think that what we're seeing is that the market's quite

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Speaker 6: happy to take a rather bullish view, risk on view

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Speaker 6: all the way through, despite the fact that elements of

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Speaker 6: bad news. You know, as we were looking over ago,

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Speaker 6: the market has been relatively flat, despite the fact that

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Speaker 6: we've had issues with huties, issues in hor Moos, the

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Speaker 6: whole escapade in Gus, and the mark's been reatively flat.

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Speaker 6: There are a lot of bad news out there, but

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Speaker 6: the market doesn't really want to look at it.

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Speaker 3: I guess we can refer to this as the Dionician trade.

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Speaker 3: Is that fair? I mean, at least for the moment,

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Speaker 3: right eat, drink and be merry and let it rip

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Speaker 3: to the upside for as long as it's able. And

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Speaker 3: I'm curious to get your take on what's happening in

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Speaker 3: China right now. So much of what we have focused

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Speaker 3: on here is the FED and whether or not we're

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Speaker 3: going to get a rate cut before the end of

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Speaker 3: the year. The earnings to the quality of corporate earnings

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Speaker 3: here in the States have been okay, but there's been

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Speaker 3: a perhaps a bigger question over a lot of what's

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Speaker 3: happening in China. We were talking yesterday about the fact

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Speaker 3: that the market's been powering ahead. Maybe this is just

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Speaker 3: kind of the introduction of a lot of foreign capital

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Speaker 3: that's testing the water in China. How much do you

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Speaker 3: think of what the move that we have seen, either

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Speaker 3: in Hong Kong or on the mainland is predicated on

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Speaker 3: the assumption that the quality of earnings is going to

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Speaker 3: begin to improve for Chinese firms.

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Speaker 6: Well, I think that's right, but I think a lot

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Speaker 6: of the move at the moment has been stress relief.

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Speaker 6: You know, we've had very weak period in China. We

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Speaker 6: had huge expectations both COVID and nothing really came of it.

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Speaker 6: The Hong Kong market has been especially bad, and the

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Speaker 6: Hong Kong market's probably likely to act as a warrant

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Speaker 6: on China, you know, worse when China does bet does worse,

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Speaker 6: and better when China does better. China has recently been

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Speaker 6: doing better, and one key reason for this, of course,

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Speaker 6: is that the authorities need to keep that economy going.

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Speaker 6: They can't have it in the slough of despond for

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Speaker 6: a long period of time. So they have put a

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Speaker 6: lot of stimulus into the market pretty well at trillion dollars,

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Speaker 6: you know, which even for China's a reasonable amount of

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Speaker 6: money that's starting to come through. They use the big Bazuka.

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Speaker 6: But there are signs so they may actually be now

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Speaker 6: looking at restructuring the property market, maybe putting some of

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Speaker 6: the bad debt into a bad bank, put it aside,

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Speaker 6: making sure the apartments there already been bull to finish

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Speaker 6: these kind of things. If they can tackle that property market,

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Speaker 6: I think the sentiment in China will improve dramatically.

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Speaker 2: The tricky part, Richard, is that markets get out in

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Speaker 2: front of the actual data. That's why I don't think

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Speaker 2: that really smart investors are always data dependent. For instance,

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Speaker 2: you look at the HANKSNG index. It has matched the

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Speaker 2: S and P five hundred year today nine percent higher

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Speaker 2: for both. And we have not seen good earnings in

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Speaker 2: Hong Kong, we have not seen good earnings in China,

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Speaker 2: and yet the market has moved out. So we've talked

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Speaker 2: also about the queues. The ETF that looks at Nazaq

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Speaker 2: one hundred and it's actually flat for the past three months,

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Speaker 2: and yet there hasn't been bad earnings from companies like

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Speaker 2: Nvidia and Broadcom. So give me something where you're looking

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Speaker 2: out into the future that the data of the day

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Speaker 2: is not telling us.

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Speaker 1: Well.

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Speaker 6: I mean, you make an extremely good point, Brian, because

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Speaker 6: you know what we're talking here is the wisdom of

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Speaker 6: the crowd. We all know the market. The crowd seems

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Speaker 6: to sense that good news is coming through. You know,

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Speaker 6: why is it that markets are doing quite well? And

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Speaker 6: then the data comes through and say, oh, that's why

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Speaker 6: the market was doing well, you know, because the probabilities

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Speaker 6: of things happening become sharper towards as time goes on.

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Speaker 6: And I think that's what we're seeing with this forecasting element.

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Speaker 6: But doesn't it take you back to a big question

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Speaker 6: about the FED? The FED is always data dependent. Well,

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Speaker 6: if you're waiting for data to come through, it's too late.

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Speaker 6: And maybe this is a problem with so many people

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Speaker 6: in the FED being economists. Maybe you should have more

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Speaker 6: bankers in the FED who actually spend their time looking

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Speaker 6: forward and not back.

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Speaker 3: So the FED has obviously been a key theme. Another

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Speaker 3: key theme has been artificial intelligence. We were talking about armholdings.

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Speaker 3: We were talking about Apple a short while ago, getting

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Speaker 3: ready to unveil some new AI features later in the year.

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Speaker 3: How are you feeling about AI as a trade still?

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Speaker 3: Does it have legs or would you be concerned maybe

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Speaker 3: that things are a little overextended in certain areas and

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Speaker 3: it would be prudent to remove a little bit of risk.

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Speaker 6: Well, the AI bubble reminds me a little bit of

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Speaker 6: the dot com bubble of the two thousands, but you know,

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Speaker 6: I don't think it's anything like that. I think it's

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Speaker 6: a mere shadow of that. And yes, we don't really

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Speaker 6: know what AI is going to do. We had maybe

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Speaker 6: a bit of a clear impact of what the Internet

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Speaker 6: was going to do, but we didn't really know. You know,

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Speaker 6: is it going to be the most fantastic thing. Is

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Speaker 6: it going to be a disaster. It'll be a bit

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Speaker 6: of both. And I think we still have to learn

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Speaker 6: how AI is going to work, like the early days

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Speaker 6: of the automobile when a man walked in front of

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Speaker 6: it with the red flag. So we're still looking at that.

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Speaker 6: But I think that AI is clearly going to be important.

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Speaker 6: There are new things happening. I mean, Apple is particularly

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Speaker 6: interesting in that they're using their own chips for some

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Speaker 6: of this stuff. And everybody thought Apple was dead about

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Speaker 6: two weeks ago. You know, it was an exposure that

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Speaker 6: China the ecosystem slid down, iPad slaying down, and all

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Speaker 6: of a sudden, you have this new thing coming through

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Speaker 6: where Apple actually does have a stake in it. So

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Speaker 6: all of these things are happening at the moment. I

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Speaker 6: don't think the AI bubble is over yet.

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Speaker 2: You keep referring to it as an AI bubble, and

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Speaker 2: yet the earnings for a lot of these companies are

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Speaker 2: growing into the valuations. I know that Doug Richard has

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Speaker 2: done a PhD in market narratives, so he's quite an

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Speaker 2: expert on narratives, and he got that PhD in his sixties,

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Speaker 2: which is pretty pretty impressive.

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Speaker 6: So last year, by the way, I.

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Speaker 2: Know, it's really quite quite intense and amazing. But but

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Speaker 2: you know, do you think you're jumping the gun a

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Speaker 2: little bit with saying bubble because we have not seen yet,

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Speaker 2: you know, the full ramifications, the full implications of official intelligence.

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Speaker 6: Well that's right, but we go back to what we

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Speaker 6: were saying a moment earlier. You know, isn't the wisdom

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Speaker 6: of the crowd picking out the potential benefits of these

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Speaker 6: things early on. You know, why is the market moving

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Speaker 6: in the way it is. Why does it have this

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Speaker 6: risk on element when we've had two wars, we've had

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Speaker 6: issues with China, sluggish growth, a load of risks out there,

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Speaker 6: and yet the market still continues. There is an underlying

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Speaker 6: narrative I think from AI that at the moment for

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Speaker 6: markets is more positive than negative.

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Speaker 3: I'm still going back to the guy who stepped out

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Speaker 3: in front of the Model T with the red flag.

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Speaker 3: Was he run over or did the car stop? Well?

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Speaker 6: I guess when they changed into second gear. When they

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Speaker 6: found the second gear, then he was in trouble.

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Speaker 2: All right, Richard, we'll probably have to leave it there.

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Speaker 2: Thanks very much for coming into the studios. Always an

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Speaker 2: interesting conversation. Richard Harris is CEO of Port Shelter Investment Management.

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Speaker 3: This has been the Bloomberg Daybreak Asia podcast, bringing you

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Speaker 3: the stories making news and moving markets in the Asia Pacific.

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