Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 1: The stocks on the move today in Aita. I'm Stephen
Speaker 1: Cara with Carline Hapker and joining us now is our
Speaker 1: market supporter Anthony Stevens. And so let's start them with
Speaker 1: the Chinese AI companies. Getting a post from a couple
Speaker 1: of different factors this morning. What's going on?
Speaker 3: Yeah, So Mini Max, for example, is one of the
Speaker 3: Chinese lms that's been added to the southbound connect This
Speaker 3: is the avenue via the Asia investors can invest in
Speaker 3: Hong Kong, and they tend to be quite aggressive, and
Speaker 3: you're seeing that in the stock was up seventeen percent
Speaker 3: and was up around twenty percent. Now it's up sixteen Jupu.
Speaker 3: Its competitor is also up fifteen percent.
Speaker 4: Now.
Speaker 3: Adding to the flow pressure is the fact that the
Speaker 3: Chinese lms have started charging money increasingly more money for
Speaker 3: their models. So we had price increases from Deep Sea,
Speaker 3: followed by reports that Ali Baba might charge large consumers
Speaker 3: for its AI models as well. This comes as there's
Speaker 3: been some concern of token prices really sliding into the
Speaker 3: lows of twenty twenty six. So it's really encouraging that
Speaker 3: the Chinese are also putting a flow underneath pricing and
Speaker 3: prepared to charge for the top end of their models.
Speaker 4: Yeah, okay, so we're watching AI closely. But then there
Speaker 4: have also been some earnings disappointments from some big names
Speaker 4: in Japan.
Speaker 3: Yeah, it's one of the biggest days for earnings in Japan.
Speaker 3: Work some seven hundred plus listed companies you know I've
Speaker 3: reported today, and some of the more notable names have
Speaker 3: been on the downside. So in the medical equipment space,
Speaker 3: there have been two disasters back to back, M three
Speaker 3: and Fujifilm. Fujifilm is of course a well known photography name,
Speaker 3: but that it makes the most of its money now
Speaker 3: in medical equipment, and they've both had record drops of
Speaker 3: around seventeen percent after both earnings and growth forecasts missed.
Speaker 3: So it'll be interesting to see where the investors stick
Speaker 3: with this space, especially with the AI interruptions that are coming. Lastly,
Speaker 3: laser Tech, which is in the AI space, is also
Speaker 3: down around thirteen percent. Laser Tech makes testing equipment for semiconductors.
Speaker 3: This space is also under pressure from Chinese competition, presumably
Speaker 3: to follow as China moves up the value curve. So
Speaker 3: it'll be interesting to see whether the people can maintain
Speaker 3: their risk capitite in this space. So Japan seeing a
Speaker 3: lot of earnings dispersion. We've been talking about a lot
Speaker 3: of double digit moves after earnings, and let's see where
Speaker 3: the people stick with the winners and continue to cut
Speaker 3: the losers.
Speaker 1: Okay, Well, they've also been watching banks in Singapore, the
Speaker 1: country ceridifying its status as a wealth management hub.
Speaker 3: Yeah, Singapore is a bit of a reputation for being
Speaker 3: a dull country in terms of their equity market, but
Speaker 3: the banks have quietly put up some really good numbers. OCBC,
Speaker 3: for example, is up fifty two percent on the year,
Speaker 3: and after earnings is up three percent and moving to
Speaker 3: a new record that is more than the costpi's index
Speaker 3: return a year. Today. It's bigger peer, DBS is also
Speaker 3: up around one and a half percent after very strong earnings.
Speaker 3: That stock is up around twenty thirty five percent on
Speaker 3: the year. And one of the things they talked about
Speaker 3: during earnings is the interesting aspect of combining AI and
Speaker 3: wealth management. So these guys are really ahead of the
Speaker 3: curve on the fintech side of things. It's a small market,
Speaker 3: but it's a very lucrative market, and increasingly so as
Speaker 3: the young rich start to put their money to work.
Speaker 4: Yeah, that's fascinating, isn't it. Lastly, I thought, Anthony, if
Speaker 4: you would on this US Japan intervention. There's been a
Speaker 4: lot of focus on yen intervention and whether we might
Speaker 4: see it again as the Japanese yen gives up a
Speaker 4: lot of the moves that we saw as a result
Speaker 4: of this kind of helping hand from Scott Bessen, and
Speaker 4: it's also got the attention of Europe too.
Speaker 3: Yeah, there's been a lot of intelligent people speaking about
Speaker 3: the yen over the last couple of days in terms
Speaker 3: of the viability of continued intervention. In the first place,
Speaker 3: the US swap line repot line with Japan was unused,
Speaker 3: so it appears that Japan has actually raised the money
Speaker 3: themselves not use the repo line to intervene in the currency.
Speaker 3: That's the first kind of mini shock. The second one
Speaker 3: is that they probably run out of bullets if they
Speaker 3: do it that way using their own money, because they
Speaker 3: have probably another two interventions left this year, and the
Speaker 3: market knows it before they lose their status as a
Speaker 3: free floating currency, so they need a lot of help
Speaker 3: from the US. Now, what you mentioned there about Europe
Speaker 3: is the fact that the US and Japan didn't particularly
Speaker 3: ask for Europe's permission and instead sold the euro against
Speaker 3: the yen. So what currencies are being played against the
Speaker 3: yen is also interesting, and you know, is a new
Speaker 3: factor to this kind of intervention that is popping up.
Speaker 3: So clearly the US wants to reduce pressure on its
Speaker 3: own assets while helping the Japanese strengthen their currency. So
Speaker 3: these two countries have to find kind of a productive
Speaker 3: middle ground in steading up the end without causing any
Speaker 3: other problems in other asset markets.
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