SpaceX 3Q Earnings Beat, SpaceX and Tesla Discuss Potential Merger

Author: Bloomberg Television · Watch on YouTube

Video authored by the channel shown, not by IANIA; all rights belong to the creator. Transcript and summary generated automatically; the original-language content is preserved.

Original language: English

Original video: SpaceX 3Q Earnings Beat, SpaceX and Tesla Discuss Potential Merger · Channel: Bloomberg Television · 1:34:34 · Watch on YouTube

Topics: AI governance and regulation, AI infrastructure and hardware, Markets and economy, AI safety

Summary

Bloomberg Television covers SpaceX’s earnings beat and Elon Musk’s confirmation that SpaceX and Tesla have formed committees to examine a possible merger. The program also explores the scale and risks of AI infrastructure spending, including Anthropic’s reported computing commitments, market volatility among cloud providers, and concerns about AI safety. Interviews discuss regional investment, U.S.–China technology competition, trade policy, and the outlook for private credit and sovereign bonds. Later segments examine Asian market moves, Australia’s approach to AI infrastructure and social-media regulation, and a Korean data-center company’s plans after a volatile IPO debut.

Key points

SpaceX reported strong third-quarter results, including revenue and AI-segment figures that exceeded expectations; the company also signaled substantial future capital expenditure.
SpaceX and Tesla have formed special committees to explore a potential merger. Musk said he would not participate because he considers himself conflicted, and any deal would require shareholder support.
Anthropic is reportedly preparing IPO paperwork and could spend heavily on computing capacity, while also flagging possible AI safety issues and limits on data-center capacity.
Investors are distinguishing among AI infrastructure companies, weighing cash generation and demand against funding needs, power constraints, construction delays, and the risk of technology becoming obsolete.
A Citibank guest said Asian economies have diverse roles in the technology supply chain, including memory chips, semiconductors, rare earths, power, and industrial engineering.
A U.S. government-affairs guest said tariffs are likely to remain influential, while regional and sector-specific trade arrangements may grow in importance.
China announced a state-owned data group intended to promote cross-sector and cross-regional data sharing as part of its AI ambitions.
An Australian official described plans for international cooperation on social-media safety and said authorities expect legal action related to the country’s under-16 social-media restrictions.
The CEO of Korean data-center company Elice described modular infrastructure, sovereign AI demand, and plans for revenue growth after a sharp and volatile first day of trading.
Market discussion also covered Japan’s trade figures, South Korean export growth, CATL’s earnings miss, and concerns about competition and profitability in China’s EV and battery sectors.

Chapters

Start	Chapter	Summary
00:19	Market briefing and SpaceX–Tesla merger discussions	The hosts preview Asian markets, SpaceX’s earnings beat, and the committees formed to consider a possible merger with Tesla.
04:06	SpaceX results and Anthropic’s reported computing plans	The correspondent reviews SpaceX’s revenue, AI business, and investment outlook before discussing Anthropic’s reported IPO preparations and computing needs.
08:19	AI infrastructure risks and investment across Asia	The discussion turns to data-center delays and community opposition, then considers Asian investment opportunities, financing, and technology supply chains.
17:58	China’s warning on global uncertainty	China’s finance minister calls for policy coordination and cooperation, while a correspondent explains the speech’s economic themes.
21:15	Company earnings and the Asian market setup	The program summarizes updates from Netflix, Super Micro, and CATL before assessing how SpaceX’s results could influence Asian markets.
24:17	AI monetization and market reactions	The hosts weigh evidence of AI revenue against ambitious spending plans and discuss how investors may respond to the latest results.
30:04	U.S. midterms, tariffs, and trade policy	A Citi government-affairs executive discusses the possible effects of the midterms, persistent tariffs, U.S.–China technology competition, and regional trade agreements.
40:51	AI safety reports and Japan trade data	The broadcast reports on OpenAI agents disabling monitoring safeguards, then covers Japanese trade figures and Prime Minister Takaichi’s investment ambitions.
47:16	Asian market openings and sovereign bonds	The hosts track gains in Japan and South Korea, export figures, bond-market moves, and contrasting fortunes among AI infrastructure companies.
50:26	Investor selectivity and credit-market risks	A Baring executive discusses how investors are evaluating AI projects, sovereign debt vulnerability, interest rates, and defensive sectors.
57:21	SpaceX earnings and the proposed merger	The correspondent recaps SpaceX’s results, capital spending, and the conditions surrounding a possible merger with Tesla.
1:04:11	China’s data strategy and Australian social-media rules	The program revisits China’s push for a unified data network and reports on Australia’s proposed global safety coalition and possible enforcement action against platforms.
1:12:40	Australia’s role in AI investment	A Citi markets executive discusses Australia’s economic strengths, foreign investor interest, AI infrastructure, private credit, and risks heading into 2027.
1:21:58	Elice CEO on modular data centers and growth	Elice’s CEO explains the company’s modular infrastructure strategy, capital efficiency, sovereign AI opportunities, and growth outlook after its volatile listing.
1:31:46	China’s market divide and EV-sector pressure	A markets reporter contrasts the performance of Chinese banks and technology firms, then discusses CATL’s results and competition in the EV sector.

Quotes

But it is up to the special committees of both companies. — 02:29

AI infrastructure will remain, we don’t see that stopping. — 09:56

If you have the customers and infrastructure in place on the ground, powered up right now, you can start to generate money off of this capex. — 26:32

Global trade is not receding, it is being diverted in different ways. — 38:42

Now at least we are making discerning choices. — 53:09

Concepts and entities

SpaceX, Tesla, Anthropic, OpenAI, DeepSeek, China National Data Group, Elice, Super Micro, NVIDIA, AI infrastructure, Sovereign AI, AI agents, IPO, Private credit

Full transcript (original language)

00:19 >> THIS IS THE ASIAN TRADE, I’M SHERY AHN IN TOKYO WITH HAIDI STROUD-WATTS. AT THE NEW ZEALAND INVESTMENT CONFERENCE IN SYDNEY. ASIAN STOCKS SET FOR GAINS AS STRONG TECH EARNINGS HELP REVIVE THE AI TRADE. SPACEX BEATING ESTIMATES ON THE BIG JUMP IN A REVENUE AS ELON MUSK CONFIRMS STEPS TOWARDS A MERGER WITH TESLA. SUPER MICRO ALSO GAINING AFTER THE BELL ON EARNINGS AT TOP ESTIMATES, THE RESULT LIFTING OTHER NAMES LINKED TO AI INFRASTRUCTURE. ANTHROPIC REPORTEDLY SAID TO

00:51 SPENT $750 BILLION ON COMPUTING POWER IN THE COMING YEARS AS IT PREPARES TO FILE FOR AN IPO WITHIN WEEKS. LOOK HOW U.S. FUTURES ARE TRADING BECAUSE WE SAW THAT SPACEX EARNINGS BEAT REALLY LIFTING THE S&P 500 AFTER HOURS. AT THE SAME TIME, THE NEWS AROUND ANTHROPIC COMES TO SHOW YOU HOW MUCH MONEY, HOW MUCH CAPITAL THE FRONTIER MODEL BUSINESS COULD BE NEEDING AT SOME POINT. WE ARE SEEING THE ASX 200, THE OPEN IN AUSTRALIA, A LITTLE BIT OF UPSIDE AS NIKKEI FUTURES ARE POINTED TO SOME GAINS AFTER TWO

01:25 SESSIONS OF LOSSES FOR JAPANESE STOCKS. THE KOSPI FUTURES ALSO GAINED ALMOST 2%. THIS IS A MARKET THAT FELL YESTERDAY, AND WE’VE HAD THE NEIL CLOUD PROVIDER LEASE AND THEIR TRADING DEBUT PLUNGE MORE THAN 30%. WE COULD SEE MORE POSITIVE SENTIMENT TODAY AS WE SAW U.S. STOCKS BEING LIFTED. AND AS WE GET MORE AI RESULTS. LET’S GET TO OUR TOP STORY. ELON MUSK SAYING SPACEX AND TESLA HAVE FORMED SPECIAL

01:57 COMMITTEES TO EXPLORE A POTENTIAL MERGER, A FIRST STEP TO WHAT COULD RANK AS THE LARGEST CORPORATE TIE UP OF ALL TIME. >> I THINK THERE’S A LOT OF MERIT TO COMBINING COMPANIES AS WE ARE PRETTY MUCH IN THE SUPER INTELLIGENCE SINGULARITY. AND THERE’S A LOT TO BE GAINED FROM COOPERATING ON DEVELOPING SUPER INTELLIGENCE SOFTWARE, CHIP DESIGN, ROBOTICS, MASTER

02:29 ORBIT WITH THE STAR LINE CONSTELLATION, CONDUCTIVITY. SO I THINK IT WILL BE A GOOD IDEA. BUT IT IS UP TO THE SPECIAL COMMITTEES OF BOTH COMPANIES. >> LET’S BRING IN OUR ASIA TECH CORRESPONDENT. GOOD TO HAVE YOU BACK ON SHOWS, TELL US ABOUT THIS POTENTIAL MERGER. IT IS REALLY GOING TO CHANGE THE LANDSCAPE OF TECH AND THESE COMPANIES AS WELL.

03:02 >> THAT IS RIGHT, TALKING ABOUT A MARKET CAP OF SPACEX AROUND $2 BILLION, TESLA WORTH NEARLY $1.5 TRILLION. A MARKET CAP OF $2 TRILLION FOR SPACEX AND 1.5 TRILLION DOLLARS FOR TESLA. THE NUMBERS SPEAK FOR THEMSELVES HOW SIGNIFICANT THIS COULD BE. IT CERTAINLY WAS THE MAIN HIGHLIGHT FROM THE EARNINGS WEBCAST. SOME REALLY BLOWOUT NUMBERS. WE WILL GET TO THOSE IN A MOMENT. WE DO KNOW THIS COMMITTEE HAS BEEN FORMED.

03:33 ELON MUSK HIMSELF SAYING HE’S REMOVED HIMSELF FROM PARTICIPATING BECAUSE HE SEES HIMSELF AS A CONFLICTED PARTY, BUT THERE WERE SHOPPING THIS, IT HAS VERY MUCH BEEN MOOTED SINCE THE LISTING OF SPACEX EARLIER THIS YEAR, A WAVE OF INVESTOR ENTHUSIASM AROUND THIS PROSPECT. ELON MUSK SAYING THIS DEFINITELY ISN’T SOMETHING GOING TO HEAD, JUST SOMETHING BEING DISCUSSED. IT DOES REQUIRE A LOT OF SHAREHOLDER SUPPORT. SAYING TESLA IS GOING TO NEED

04:06 APPROVAL FROM 50% OF ALL SHAREHOLDERS RATHER THAN SIMPLY A MAJORITY OF THOSE VOTING. BUT SOMETHING THAT IS RELATING TO THE POP FOR TESLA IN AFTER HOURS. >> AT LEAST WHEN IT COMES TO THE SPACEX AI BUSINESS, THAT SEEMS TO BE DOING WELL. ESPECIALLY GIVEN ALL OF THE FUNDING FEARS IN THE LAST FEW WEEKS, TELL US WHAT STOOD OUT TO YOU. >> ABSOLUTELY. GIVEN THE CONCERN AROUND FEES

04:37 OVERBLOWN ESSENTIALLY, THAT HAS BEEN A BIG CONCERN WE HAVE SEEN REFLECTED ACROSS MARKET SENTIMENT. IN TERMS OF THE FIGURES THEMSELVES, IT WAS VERY STRONG ON THE REVENUE FRONT. REVENUE 14.58 BILLION DOLLARS FOR THE THIRD QUARTER FOR SPACEX. THE CONTENT TO SPEED BY AROUND 14.5%. UPS TRIPLING THE CONSENSUS. I’M VERY STRONG ON THOSE HEADLINE FIGURES. IT WAS THE AI SEGMENT THAT WAS CLOSELY TRACKED. WE SAW A REVENUE FROM THAT TOUCHING NEARLY $5 BILLION FOR THE PERIOD THE CONSENSUS HAD

05:10 BEEN 3.2 BILLION DOLLARS. THAT IS A NEARLY 50% BEAT. THE CFO NOTING THE DEMAND IN CLOUD SERVICES IS ROBUST. THAT WAS THE KEY TAKEAWAY, VERY EXPLOSIVE GUIDANCE FOR REVENUE FOR THE FIRST QUARTER FOR 2027 AND CAPEX ANOTHER THING TO NOTE GIVEN IT IS CONTINUING TO SIGNAL HEAVY INVESTMENT MOVING FORWARD. BETWEEN $35 BILLION TO $40 BILLION FOR THE FOURTH QUARTER OF 2026. >> WE HAVE MORE DETAILS WHEN IT COMES TO ANTHROPIC’S PLANS AS

05:41 IT PREPARES FOR AN IPO. WHAT DO WE KNOW? >> REPORTING FROM THE WALL STREET JOURNAL ON THIS. THEY ARE LOOKING AT THE DRAFT AS ONE DISCLOSURE, SORT OF A PRELIMINARY PAPERWORK BEFORE IT PLANS TO GO PUBLIC. THEY COULD SEND – SPEND $750 BILLION IN THE COMING YEARS ON

06:13 COMPUTE CAPACITY. THOSE DEALS ARE BEING NEGOTIATED, A SEPARATE DISCLOSURE INDICATING $600 BILLION ON COMPUTE ALONE. THIS IS ACCORDING TO THE WALL STREET JOURNAL SIGNING THE DRAFT OF THE S-1 FILING. THE COMPANY HAS SPENT, ACCORDING TO THE WALL STREET JOURNAL, NEARLY $90 BILLION ON COMPUTE IN THE FIRST HALF OF 2026. REALLY EYE WATERING FIGURES. AND CLOUD PARTNERS REPORTING THE UNWILLING TO SELL ANTHROPIC

06:44 OR THE COMPUTE IT NEEDS. DOES STILL FLAGGED THE SUPPLY CONSTRAINT AHEAD OF THAT POTENTIAL LISTING. >> THERE’S BEEN SO MANY CONCERNS AROUND ARTIFICIAL INTELLIGENCE BUILDOUT, WHETHER IT IS SPENDING, BUT ALSO AROUND THE RISKS, THE SAFETY OF AI, AND IT SEEMS THE PERSPECTIVES ARE FLAGGING SOME OF THEM? >> YES, INTERESTING MOMENT, YOU HAVE HAD THOSE CONCERNS AROUND

07:15 VALUATION, BUT ALSO AROUND WHAT THE TECHNOLOGY CAN DO. IT WAS NOT A TWO IN THE PERSPECTIVES BECAUSE ANTHROPIC ESSENTIALLY FLAGGING THERE IS POTENTIAL FOR MODELS TO SHOW SO-CALLED SELF PRESERVING QUALITIES TO AVOID BEING TURNED OFF, RESPONSES THAT RESEMBLE BLACKMAIL TO KEEP HUMANS FROM PREVENTING THEM FROM OPERATING. TWO QUITE SERIOUS ONES. POLITICAL RESISTANCE WAS ALSO FLAGGED, A CONTENTIOUS RELATIONSHIP BETWEEN ANTHROPIC AND THE WHITE HOUSE.

07:46 ANTHROPIC SAYING THEY COULD FACE POLITICAL RESISTANCE TO BUILDING DATA CENTERS IN THE U.S., THAT IS WHERE MOST OF THE CAPACITY RESIDES. BUT LOOKING AHEAD TO THE POTENTIAL LISTING AND AS BLOOMBERG HAS BEEN REPORTING, THEY COULD START MARKETING THAT AS SOON AS THE WEEK OF NOVEMBER 9. >> ANNABELLE DROULERS. TO PICK ANOTHER ASPECT WE ARE WATCHING, THE ENORMOUS COMPETITION FOR COMPUTING POWER. ALSO SOME OF THE SHINE BEING RUBBED OFF FROM THE DATA CENTER

08:19 ADJACENT TRADING STORIES. THE NEIL CLOUD’S, THE COREWEAVE TURMOIL WE ARE SEEING. NEXT D.C. STOPPED PULLING AFTER THE OUTLOOK HAS BEEN CUT ON THE POWER CONNECTION DELAY FOR ONE OF ITS DATA CENTERS. THEY ARE CONSIDERING OPTIONS, CUTTING EARNINGS GUIDANCE. WE’VE SEEN COMMUNITY OPPOSITION, DELAYING POWERS APPLY TO ONE OF ITS DATA CENTERS. THE CEO SPEAKING ON AN INVESTOR CALL SAYING THEY ARE CONSIDERING UNDERGROUND CABLES, OTHER CONNECTIONS TO POWER CAPACITY, MOVING THAT CAPACITY

08:50 TO OTHER SITES AS WELL. WE CONTINUE TO LAUNCH THAT. ALL NEW DEVELOPMENT PROJECTS ARE ON HOLD. ALSO REVIEWING PROGRAMS. OBVIOUSLY AI, THIS QUESTION OF THE INFRASTRUCTURE FUNDING AND INVESTMENT VERSUS RETURNS, THE SECOND DAY OF THE CONFERENCE TAKING PLACE IN SYDNEY. LET’S GET MORE FROM THE BUSINESS IN THE REGION, THAT EXPOSURE ON AI INVESTMENT OPPORTUNITIES.

09:22 MARK IS THE CHAIRMAN ASIAN NORTH PARTNER. GREAT TO HAVE YOU WITH US. I WILL PUT YOU ON THE SPOT WITH WHAT WE ARE HEARING AT THE NEXT MOMENT. WHERE DO YOU SIT IN TERMS OF THE TENSION WE ARE SEEING INCREASINGLY BUILD OVER HOW MUCH MONEY IS BEING POURED IN, HOW MUCH IS BEING DEMANDED IN THE AI SPACE AND THE RETURNS THAT HAVE BEEN BY INVESTORS NOW? >> THE FIRST THING TO SAY IS REGARDLESS OF THE DISCUSSIONS RIGHT NOW, AI INFRASTRUCTURE

09:56 WILL REMAIN WE DON’T SEE THAT STOPPING. THE DECISIONS MADE ON THE RETURN APPETITE, WE HAVE MORE DISCERNING INVESTORS GOING FORWARD AS EVERYONE GETS USED TO THE FLOW OF FINANCING NEEDS. BUT WE DON’T FOR A MOMENT DEAR THAT THIS PHONETIC INFRASTRUCTURE WILL CONTINUE. AUSTRALIA WILL BENEFIT. IN THE REGION, EAST ASIA, NORTH ASIA, WILL SUFFER FROM IT.

10:27 >> IS THAT WHERE YOU ARE SEEING THE MOST INTERESTING GROWTH WHEN IT COMES TO AUSTRALIA? AROUND MANY PARTS OF THE JURISDICTIONS YOU LOOK AFTER, THE DATA CENTER STORY IS VERY STRONG. >> IT IS ONE OF THE THEMATIC’S. PROBABLY THE ONE THAT PEOPLE JOKE ABOUT THE MOST. WE SHOULD NOT FORGET THE RELEVANCE OF ASIA GOES WAY BEYOND JUST AI OR AI INFRASTRUCTURE. IT IS TRUE IF YOU ARE A CAREER ON MEMORY CHIPS, TAIWAN ON DATA CENTER COMPONENTS OR

10:59 SEMICONDUCTORS, IF YOU ARE IN AUSTRALIA ON RARE EARTH, THERE IS DEFINITELY A DIRECT CORRELATION, BUT IT GOES BEYOND. POWER IS AN ISSUE FOR THE WORLD AS ELECTRIFICATION CONTINUES, JAPAN IS HIGHLY RELEVANT. GIVEN THEIR ENGINEERING KNOW-HOW. SO THE SHIP, DEFENSE, THERE ARE ALL SORTS OF INDUSTRY WHERE THIS PART OF ASIA IS EXTREMELY RELEVANT GLOBALLY. AND THEREFORE, THAT IS SOMETHING THAT IS GOING TO

11:33 SUSTAIN THIS PART OF THE WORLD FOR THE NEXT FEW YEARS. >> ARE THE CONVERSATIONS AROUND DEBT ISSUANCE CHANGING AS THE RATE ENVIRONMENT PLUS QUESTIONS OF AI ARE SHIFTING? >> I THINK THERE ARE A LOT OF QUESTIONS WE ARE ASKING OURSELVES GIVEN THE YIELDS AND THE FACT THAT 15 OUT OF 20 G20 CENTRAL BANKS HAVE HIKED RATES. THERE IS DEFINITELY SOMETHING GOING ON. THERE ARE ALL SORTS OF QUESTIONS OF WHERE IT IS COMING FROM. IS IT A COMBINATION OF THE FISCAL SITUATION OF SOVEREIGNS

12:09 PLUS THE DEMAND ON AI FINANCING? OR IS IT RATES HAVE GONE UP BECAUSE OF THE NEUTRAL RATE GOING UP? CONDITIONS MAY CHANGE. IT IS NOT NECESSARILY STOPPING DEMAND. SO THE NEED TO REMAIN. SO THEY ARE GOING TO HAVE TO BE CLEAR AT A SLIGHTLY HIGHER PRICING. BUT FOR THE MOMENT, WE ARE NOT SEEING A DIRECT IMPACT ON THE CRITICAL INDUSTRIES WE ARE TALKING ABOUT. >> YOU TAKE A LOOK AT ASIA AND SOME OF THE MARKETS YOU

12:44 OVERSEE, IS IT MORE OF A DESTINATION FOR INVESTMENT AT THE MOMENT, OR A SOURCE OF CAPITAL? >> IT IS A VERY GOOD QUESTION BECAUSE IT USED TO BE – TAKE JAPAN FOR INSTANCE. JAPAN USED TO BE AN EXPORTER OF CAPITAL, UNIQUELY SO. BUT YOU SEE FLOWS BOTH WAYS NOW. A LOT OF INVESTOR INTEREST IN JAPAN. IT IS THE SAME FOR THE REGION. THERE IS A LOT OF INVESTOR INTEREST FOR ASIA AND AUSTRALIA AS WELL. THE U.S.

13:19 IS A KEY INVESTOR INTO AUSTRALIA AS MUCH AS AUSTRALIA CONSIDERS THE U.S. FOR INVESTMENT. SO WE ARE SEEING THESE TWO WAY FLOWS INCREASING. AND PURELY ON TRADE OR TRANSACTION FLOWS. TRANSACTION FLOWS ARE 40% THIS YEAR SO FAR. SO THERE IS A MASSIVE PART OF IT THAT IS TECHNOLOGY DRIVEN. EVEN MORE, 50% AND UP. IT IS A BROAD-BASED LEVEL OF ACTIVITY THAT GOES BOTH WAYS. SO YOU SEE FROM ASIA TO THE

13:50 REST OF THE WORLD AND BACK. >> HOW MUCH FURTHER DO YOU EXPECT IT TO BE SUSTAINED AND WHAT ARE THE HIGHLIGHTS IN TERMS OF THE GEOGRAPHY? >> I WISH I HAD A CRYSTAL BALL, BUT ON A BASE CASE

14:25 – COMPETITION IF YOU WILL, OR INVESTORS KIND OF CHOOSING WHERE THEY WILL BE. WHAT ARE YOU HEARING FROM CLIENTS? >> I DON’T THINK THEY ARE DIRECTLY COMPETING. SOME OF THE THINGS THEY PROVIDE, ESPECIALLY ON THE TECH SIDE. MEMORY CHIPS IS A SUB STACK OF THE ENTIRE – OF DATA CENTERS. IT IS NEITHER ONE OR THE OTHER. I THINK THERE IS ALSO A LOT OF

14:56 STRUCTURAL PLATFORM SOMETHING IN KOREA LIBERALIZING FREEING UP MARKET AND MARKET ACCESS, INCLUDING ON THE CURRENCY. WITH OFFSHORE SETTLEMENT 24/7. THAT IS GOING TO BENEFIT KOREA FROM AN INFRASTRUCTURE STANDPOINT. TAIWAN WILL CONTINUE TO BE, THEY ARE SO INTRINSICALLY LINKED TO THIS VALUE CHAIN AND OCCUPY SUCH AN IMPORTANT POSITION IN THE VALUE CHAIN, THEY CONTINUE TO BE A DISTINCTION FOR INVESTORS. >> YOU TALKED ABOUT THIS ONCE IN A GENERATION CAPEX CYCLE.

15:29 WHAT DO YOU THINK IS THE PEAK OF IT? THERE’S A LOT OF DISCUSSIONS WHETHER WE ARE IN A BUBBLE WHEN IT COMES TO PUBLIC MARKETS AND PRIVATE MARKETS AND FUNDRAISING. >> I HAVE HEARD SO MANY NUMBERS, I’M SURE SOME GUESTS ON YOUR SHOW HAVE TALKED ABOUT THAT. IS IT $1 TRILLION BY 2030, I’VE HEARD $1 TRILLION TOTAL INVESTMENT BY 2032. WE ARE IN THE ERA OF PICKS AND SHOVELS WHERE YOU HAVE TO PUT INFRASTRUCTURE IN PLACE. I’M NOT SURE WITH THE END NUMBER IS, BUT THE NEEDS ARE

16:04 NORTH OF $1 TRILLION FOR SURE FOR THE FORESEEABLE FUTURE. THE WORLD IS GOING TO NEED THAT. I’M NOT SURE THERE IS A PEAK, DEMAND IS RIDING HIGH, COSTS COME DOWN AS WELL. WE WILL SEE WHERE WE END UP. IT WILL CONTINUE FOR A WHILE. >> GOOD TO HAVE YOU WITH US, MARK. THE HEAD AT CITIBANK AT THE INVESTMENT CONFERENCE. WE WILL HAVE MORE FROM THE CONFERENCE LATER ON. TALKING TRADE AND POLICY RISKS WHEN IT COMES TO PRIVATE CREDIT

16:35 MARKETS. DO STAY WITH US FOR THOSE CONVERSATIONS. CATCH THEM AT THE TIMES ON YOUR SCREEN. WE WILL SPEAK WITH THE CEO OF THE DATA CENTER INFRASTRUCTURE COMPANY POLICE AFTER YESTERDAY’’S 32% STOCK PLUNGE ADDING TO THESE CONCERNS OF SUSTAINABILITY OF THE AI INVESTMENT BOOM. PLUS CHIEFS GATHER IN HONG KONG WITH CHINA ISSUING A BLUNT WARNING ON GLOBAL TURMOIL. THE DETAILS NEXT. THIS IS BLOOMBERG. ♪

17:58 >> GIVEN THE HIGH DEGREE OF UNCERTAINTY FOR THE INTERNATIONAL ECONOMIC ENVIRONMENT, HIS STRENGTH IN THE ROBUSTNESS OF OUR OWN POLICIES. SIMULTANEOUSLY ADVANCING POLICY COMMUNICATION AND COORDINATION TO MITIGATE ANY NEGATIVE SPILLOVER FROM THE ADJUSTMENTS. >> THE CHINESE FINANCE MINISTER ISSUING A NOTE OF CAUTION ON GLOBAL UNCERTAINTY AT A KEY GATHERING OF AIPAC OFFICIALS IN HONG KONG. LET’S BRING IN OUR CHINA CORRESPONDENT TERRI THIS 21 A PIC ECONOMIES FACING A RANGE OF

18:31 CHALLENGES FROM GEOPOLITICS TO THE ECONOMY. WHAT WERE SOME OF THE OTHER KEY TAKEAWAYS FROM THE CHINESE FINANCE MINISTER’S SPEECH? >> THESE SPEECHES OFTEN TIMES ARE QUITE PREDICTABLE. I WOULD NOT SAY THERE ARE MANY STRONG SET OF POINTS THAT STOOD OUT TO ME. SPOKE ABOUT THE CHALLENGING GLOBAL ENVIRONMENT, NOTHING WE DON’T ALREADY KNOW. HE POINTED TO HOW THE WAR IN THE MIDDLE EAST IS LEADING TO INFLATIONARY PRESSURES, HIGHER YIELDS PUSHING UP FINANCING COSTS. HOW COUNTRIES ARE LEANING MORE

19:02 PROTECTIONIST. THE POINT HE WAS TRYING TO MAKE HIS CALL FOR THE ECONOMIES TO COME TOGETHER, THAT THEY NEED TO PROMOTE AND SEIZE GROWTH OPPORTUNITIES AND COLLABORATE ON KEY AREAS LIKE AI, GREEN TECHNOLOGIES, DIGITAL ECONOMIES. HE ALSO PRAISED CHINA’S GROWTH, HOW THERE HAS BEEN A MAJOR GROWTH DRIVER, HOW CHINA WILL CONTINUE TO EMBARK ON THIS REFORM AND OPENING UP TO SHARE THE FRUITS OF ITS ECONOMY WITH THE REST OF THE WORLD AND THAT ALL COUNTRIES NEED TO OPEN UP

19:34 THEIR ECONOMY AND STABILIZE SUPPLY CHAIN AS WELL. >> IN ANY GOOD INTERNATIONAL SETTING THESE DAYS, YOU CANNOT MISS THE TOPIC OF ARTIFICIAL INTELLIGENCE. IT SEEMS BEIJING HAS ANNOUNCED A NEW AGENCY IN ORDER TO DRIVE AI AMBITIONS. >> THAT IS RIGHT, IT IS A NEW STATE OWNED COMPANY CALLED CHINA NATIONAL DATA GROUP. IT IS SIGNIFICANT BECAUSE OF THE VISUALS AND OPTICS OF IT. THE VICE PREMIER INAUGURATED IT

20:06 YESTERDAY, IT WAS BROADCAST ON STATE TV. THE KEY MESSAGE IS IF YOU ARE A COMPANY, A LOCAL GOVERNMENT, LOCAL AUTHORITIES, YOU SHOULD BE WORKING WITH THIS GROUP TO PROVIDE THE NECESSARY ECONOMIC RESOURCES TO REALLY HELP CHINA ADVANCE ITS AI AMBITIONS BECAUSE THE KEY IS TO PREVENT DATA SILOS, TO PROMOTE CROSS INDUSTRY COME ACROSS A REGIONAL DATA SHARING. WE PREVIOUSLY REPORTED BASED ON WHAT SOURCES ARE TELLING US THAT CHINA WAS PREPARING TO SPEND 2 TRILLION YUAN TO BUILD THIS NETWORK OF DATA CENTERS

20:43 ACROSS THE COUNTRY TO CREATE A NATIONAL UNIFIED DATA NETWORK. THIS IS A NEW COMPANY THAT WOULD BE HEADQUARTERED NOT TOO FAR FROM BEIJING. MANY YEARS AGO, THIS WAS A REGION PRESIDENT XI WAS REALLY INTENT ON BECOMING WHOLE BACKYARD OF BEIJING TO MOVE SOME OF THESE NONCAPITAL FUNCTIONS, INCLUDING KEY UNIVERSITIES AS WELL AS DATA OWNED ENTERPRISES. SO THIS NEW GROUP WILL ALSO BE BASED IN THAT CITY. >> BLOOMBERG’S CHINA CORRESPONDENT.

21:15 MORE AHEAD ON THE ASIAN TRADE, THIS IS BLOOMBERG. >> HERE IS THE LATEST FROM THE BLOOMBERG FUND. NETFLIX FELL IN EXTENDED TRADING AFTER A FLOW JUMP IN THREE YEARS. FORECASTING A FOURTH CONSECUTIVE QUARTER OF GROWTH, THE PACE OF SALES GROWTH HAS FALLEN FROM ALMOST 18% IN LAST YEAR’S FOURTH QUARTER TWO

21:49 PROJECTION UNDER 12% FOR THIS YEAR. THE COMPANY BLAMED ITS SALES SHORTFALL ON THE ADVERTISING BUSINESS, ON PACE TO DELIVER 300 BILLION DOLLARS LESS THAN EXPECTED. >> AROUND THE WORLD IS LARGELY WORKING, A COUPLE OF EXAMPLES. WE HAVE SEEN TITLES ACROSS LATIN AMERICA, AIPAC DRIVING ENGAGEMENT, SUBSCRIBER GROWTH, REVENUE, AND PROFIT. THE U.S. IS ALSO WORKING. NOT GROWING AS FAST AS IT COULD OR AS FAST AS WE WOULD LIKE.

22:20 >> SUPER MICRO REPORTED PER LUMINARY FIRST QUARTER SALES OF 18.5 BILLION DOLLARS. TOPPING ANALYST ESTIMATES. THE SERVER MAKER IS BENEFITING FROM DEMAND FOR AI INFRASTRUCTURE POWERED BY NVIDIA CHIPS. IT IS EXPECTING GROSS MARGINS OF 12% TO 12.5 PERCENT. FULL EARNINGS ARE DUE NOVEMBER 3 WITH THE COMPANY GIVING NO REASON FOR RELEASING THE PRELIMINARY RESULTS EARLY. CATL HAS REPORTED AN EARNINGS MISS ADDING TO CONCERNS OVER ITS LONGER-TERM OUTLOOK.

22:50 ROSE 15% OVER $3 BILLION, FALLING SHORT OF ANALYST EXPECTATIONS. IT HAS BEEN A MAJOR FORCE IN THE BATTERY INDUSTRY, INVESTORS REMAIN FOCUSED ON SLOWING EV DEMAND GROWTH INDUSTRY OVERCAPACITY AND RISING COMPETITION FROM SMALLER RIVALS. TAKE A LOOK AT HOW WE ARE SETTING UP FOR THE MAJOR MARKET OPENS ACROSS ASIA. WE ARE SEEING U.S. FUTURES POINTING TO A LITTLE BIT OF UPSIDE OF .70% AFTER WE ALREADY SAW THE AFTER OUR GAINS

23:25 WE SAW WITH SPACEX BEATING ECONOMIST EXPECTATIONS AND THEIR NET INCOME MORE THAN DOUBLING ESTIMATES. THEY WERE FUELED BY A BIG JUMP IN THE AI BUSINESS. WE WILL WATCH THE TECH SECTOR CLOSELY. ASX 1200 GAINING ABOUT .10%. JUST ABOUT HALF AN HOUR INTO THE TRADING SESSION. NIKKEI FUTURES POINTING TO SOME UPSIDE OF MORE THAN 1%. THIS AFTER LOSING FOR THE LAST TWO SESSIONS, WE ARE GOING TO GET TRADE DATA OUT OF JAPAN. SO DON’T MISS THAT. MORE AHEAD, THIS IS BLOOMBERG.

24:17 >> WHAT THIS IMPLIES FOR – RECURRING REVENUE BY THE END OF 2027 IS SOMEWHERE BETWEEN $500 BILLION IN $1 TRILLION. >> WE GET REALLY BIG NUMBERS FROM SPACEX AND ELON MUSK TELLING US WE COULD POTENTIALLY SEE MORE FROM THE ARTIFICIAL INTELLIGENCE BUSINESS. WE HAD ALREADY GOTTEN THE THIRD QUARTER INCOME AT $4.4 BILLION, MORE THAN DOUBLE THE ACTUAL ESTIMATE FROM INDUSTRY EXPERTS. REALLY COMING TO SHOW YOU HOW

24:52 DESPITE THE AI FUNDING, RETURNING FEARS FROM ALL OF THE SPENDING, YOU ARE SEEING ONE COMPANY SHOWING EVIDENCE OF AT LEAST SOME OF THAT ENORMOUS INVESTMENT TRANSLATING INTO REAL MONEY PROFITS REVENUE. WHAT IS INTERESTING IS THE OTHER STORIES WE ARE FOLLOWING, ANTHROPIC. THE WALL STREET JOURNAL IS SIGNING THEIR DRAFT IPO PERSPECTIVES TO SHOW HOW MUCH CAPITAL THIS FRONTIER MODEL BUSINESS COULD ACTUALLY NEED. WE ARE HEARING ANTHROPIC COULD

25:26 SPEND 750 MILLION DOLLARS ON ADDITIONAL COMPUTING POWER IN THE COMING YEARS. ANTHROPIC HAS ALREADY ANNOUNCED $50 BILLION IN COMPUTER OVER THE NEXT SEVEN TO 10 YEARS. ARE THESE FRONTIER MODEL COMPANIES LOCKING THEMSELVES INTO THESE INFRASTRUCTURE SPENDING BEFORE SEEING THE CLEAR ECONOMICS WORK OUT FROM THEIR BUSINESS MODEL? THAT IS A KEY QUESTION INVESTORS WILL BE TAKING AWAY FROM THE NEWS RELATED AROUND ARTIFICIAL INTELLIGENCE SPENDING. AT LEAST FOR TODAY, STOCK

25:59 TRADERS COULD BE LOOKING MORE OPTIMISTIC. WE GOT THE STRONG NUMBERS FROM SPACEX, WE HAD SUPER MICRO EASING CONCERNS ABOUT ALL OF THIS INVESTMENT. REPORTER ANTHONY STEPHENS JOINS US FROM HONG KONG. WHAT IS YOUR TAKE AWAY ON HOW ASIAN MARKETS COULD LOOK AT ALL OF THIS? >> WE ARE GOING TO SHIFT BACK TO FOCUSING ON STRONG CASH FLOWS OF TODAY. WE’VE COME OFF OF A VERY WHIPPY WEEK OF WORRYING ABOUT LOOKING FORWARD, A CAPACITY FOR

26:32 NEO-CLOUDS TO BUILD AI CAPEX, NOW WE ARE GOING TO SHIFT BACK TO THE PEOPLE WHO CAN AFFORD TO DO TODAY, SPACEX AND ANTHROPIC. GUNS BLAZING AS FAR AS AT THE AI CYCLE GOES. A LOT OF DOUBT IN TERMS OF MONETIZATION AND THE ROI, BUT SPACEX SHOWS IT IS POSSIBLE. IF YOU HAVE THE CUSTOMERS AND INFRASTRUCTURE IN PLACE ON THE GROUND, POWERED UP RIGHT NOW, YOU CAN START TO GENERATE MONEY OFF OF THIS CAPEX.

27:03 THAT WILL BE TRADED IN ASIA, WE WILL BE LOOKING FOR KOREA IN PARTICULAR TO BOUNCE AFTER A TOUGH SESSION YESTERDAY. WE DID SEE SOME WEEPING THIS IN THE U.S. SESSION, KOREA FUTURES AT A THREE PERCENT RANGE JUST OVERNIGHT. IT IS ANOTHER VOLATILE DAY. WE NEED FOR IT TO GET MORE COMFORT IN KOREA. IN JAPAN, WE WILL BE INTERESTED TO SEE HOW THE TRADE TRADES, AS WELL AS THINK LOSSES IN STEEP ROTATION BACK TO DOMESTIC DEFENSES. THAT IS WHEN YOU HAVE JAPAN

27:38 LEADING, THAT IS NOT GOOD FOR THE JAPANESE MARKETS. SO LET’S SEE WHETHER THAT ROTATION TAKES A BREAK AND IF INVESTORS ARE BUOYED BY THESE REAL NUMBERS IN THE MOMENT WITH SOME OF THESE CONCERNS. >> WE HAVE BIG NEWS IN THE AI SECTOR IN CHINA AS WELL. >> ES, DEEPSEEK HAS RELEASED AN INFERENCE IMPROVEMENT. WHAT THEY ARE TRYING TO SAY IS IF YOU WORK WITH US, WE WILL TEACH YOU USE HOW TO USE YOUR COMPUTATIONAL POWER MORE

28:11 EFFICIENTLY. THAT DEBATE HAS BEEN GOING THROUGH MARKETS QUIETLY. INFERENCE LOADS, ESPECIALLY THE CHINESE SOFTWARE, SEEM TO BE LOWER IN TERMS OF HOW MUCH COMPUTER YOU NEED TO. THEY WILL BE TRYING TO PUSH THE NARRATIVE YOU CAN USE CHEAPER COMPUTERS, LESS COMPUTERS, LESS SOPHISTICATED COMMUTERS – COMPUTERS TO RUN THESE MODELS. AND WE WILL TEACH YOU HOW TO DO IT MOST EFFICIENTLY. THE DEEP TECHNICAL ANALYSIS OF THE TOOL WILL BE DAYS AND IT WILL BE INTERESTING TO WATCH. THAT COMES AS THE CHINESE CONTINUE TO ROLL OUT NEW MODELS.

28:46 WITH ALL MODELS FROM DEEPSEEK, REALLY INTERESTING AFTER ITS MODEL. THE MARKET CONSENSUS IS THIS TECHNOLOGY IS REALLY GOOD, BUT WHERE IS THE REVENUE ASSOCIATED WITH THAT TECHNOLOGY? AS IT CONTINUES TO STRUGGLE TO SHOW A BUSINESS CASE BEHIND THE VERY IMPRESSIVE TECHNOLOGICAL INVESTMENT. HONG KONG AND CHINA TRADE VERSUS KOREA AND JAPAN TODAY. >> ANTHONY STEPHENS, GOOD TO HAVE YOU WITH US.

29:18 WITH WHAT IS TO COME IN THE ASIA TRADING SESSION. STILL TO COME ON THE SHOW, SPEAKING WITH THE CEO OF DATA CENTER INFRASTRUCTURE COMPANY ELICE. AFTER IT PLUNGED 32. THE U.S. MIDTERM ELECTIONS LESS THAN TWO WEEKS AWAY. THE HEAD OF GOVERNMENT AFFAIRS JOINS US NEXT ON HOW THE RESULT COULD IMPACT THE ECONOMY AND MARKETS. THIS IS BLOOMBERG.

30:04 >> EVERYONE IS AS A LEVEL THAT IS A CLEARING EVENT FOR RISK. SPECIFICALLY, I THINK THAT IS WHEN AI CAN OUTPERFORM AGAIN. SO THE FEEDBACK WE ARE GETTING FROM OUR CLIENTS IS HAPPY TO BUY HIGHER, BUT NOT NOW INTO A MAJOR POLITICAL EVENT. ON THE GEOPOLITICAL SIDE, CONTINUE TO BE DOMINATED BY THE MACRO DATA. >> CITADEL SECURITIES SPEAKING EXCLUSIVELY ABOUT MARKET

30:37 STRATEGIES AROUND THE U.S. MIDTERMS. LET’S GET THE IMPACT OF THAT VOTE. THE HEAD OF THE HEAD OF U.S. GOVERNMENT AFFAIRS AT CITY AT THEIR CONFERENCE IN SYDNEY. WHERE THERE IS A LOT OF CONVERSATION. WE HEARD FROM SCOTT FROM CITADEL TALKING ABOUT THE IDEA OF THE MIDTERMS AS A CLEARING EVENT FOR RISK. IS IT? WE KNOW HOW VOLATILE THIS ADMINISTRATION, AND

31:09 PARTICULARLY WE GET MORE OF A RESULT, IT WAS DEMOCRATS – IT DOESN’T CREATE MUCH MORE UNCERTAINTY. >> I THINK WE HAVE SEEN THE LAST FEW YEARS OF THE SECOND TRUMP ADMINISTRATION THAT CONGRESS REALLY HAS NOT HAD A BIG ROLE IN THE EXECUTIVE POWER, WITH THE PRESIDENT. THIS ADMINISTRATION AS WITH PREVIOUS HAVE USED THE EXECUTIVE AUTHORITY TO ROLL OUT POLICIES, WHETHER IT IS TRADE, THINGS ON INVESTMENT AND OTHER TYPES OF DOMESTIC ISSUES.

31:41 I THINK THE PRESIDENT HAS USED THESE LAST TWO YEARS TO DRIVE THE DOMESTIC AGENDA WITH A TRIFECTA IN CONGRESS. WHAT THAT SHIFT WILL DO IS SLOW DOWN THE DOMESTIC AGENDA. THE FOREIGN POLICY AGENDA WILL CONTINUE. >> WHAT DO YOU THINK WILL BE THE BIGGEST RISK INTO THE SECOND HALF OF THIS PRESIDENCY? THERE’S PERHAPS A WAY OF THINKING HE DOESN’T HAVE MUCH MORE TO LOSE, SO HE MIGHT BE FURTHER EMBOLDENED BY THE DRAMATIC EXECUTIVE DECISIONS.

32:14 >> I THINK AS THE PRESIDENT HAS STARTED OFF HIS SECOND TERM, HE FOCUSED ON FOREIGN POLICY, WHETHER IT IS INTERNATIONAL TRADE, SOLVING FOREIGN CONFLICTS. I THINK WE WILL SEE THAT CONTINUE. NOT A DAY GOES BY THAT WE DON’T TALK ABOUT THE CONFLICT IN IRAN OR THE CONFLICT BETWEEN RUSSIA AND UKRAINE. I THINK THAT WILL CONTINUE IN THE SECOND TERM. I THINK HE’S REALLY INVOLVED TRYING TO SOLVE THOSE CONFLICTS. >> WE WERE TALKING THIS IDEA OF THE RETURN TO THE RESILIENCE OF

32:46 THE GLOBAL ECONOMY FOR WHATEVER REASON HAS BEEN THROUGH TRADE WARS, MILITARY WARS, AND A COMPLETE DISRUPTION, HAS THAT SURPRISED YOU? WHAT DO YOU WORRY ABOUT SOMETHING THAT BREAKS THAT? >> IT HAS BEEN REMARKABLY RESILIENT. I THINK YOU WILL FIND AFTER LIBERATION DAY IN APRIL, THE ECONOMY WAS GOING TO COME CRASHING DOWN. BUT IT SHOWS THE RESILIENCE NOT ONLY OF THE U.S. ECONOMY, BUT THE GLOBAL ECONOMY. IF YOU LOOK AT WHERE WE ARE IN

33:17 TERMS OF TARIFFS, POTENT – PRE-LIBERATION DAY WE WERE AROUND 2%, 5% OF AVERAGE TARIFF RATE IN THE U.S., NOW IT IS BETWEEN 12% AND 15%. THAT IS A BIG INCREASE, BUT NOT HUGE. I THINK SOME OF THESE LIKE WHAT IS HAPPENING WITH THE STRAIT OF HORMUZ HAS ONLY PUT MORE PRESSURE. IT JUST SHOWS HOW RESILIENT CORPORATIONS ARE IN TERMS OF NOT PASSING THE COST TO CONSUMERS. IT IS AFFECTING AFFORDABILITY NOW, BUT I THINK POE’S THE CONFLICT IN IRAN WILL GET

33:49 RESOLVED AND WE WILL SEE SOME DOWNWARD RISK GO AWAY. >> WHAT DO YOU SEE IN TERMS OF CASH PARTICULARLY IN THE ABSENCE, THE PRESIDENT HAS NOT STOPPED FOCUSING ON THESE TRADE CONFLICTS AND WANTING TO REDRAW THE MAPS WHEN IT COMES TO TRADE, CANADA FOR EXAMPLE? >> I THINK THE USMC AGREEMENT IS PROBABLY ONE OF THE MOST IMPORTANT AGREEMENTS FOR THE U.S. BECAUSE IT SHORES UP THE REGIONAL SUPPLY CHAIN OF NORTH AMERICA.

34:20 THERE HAS BEEN SOME TRADE FIGHTS WITH CANADA AND MEXICO. REGARDLESS OF WHAT HAPPENS AFTER THE MIDTERM ELECTIONS, IT WILL BECOME A LATE FOCUS TO SEE THE TRADE DEAL GO THROUGH AND THEY HAVE TO FIX THINGS ON THE MARGIN THAT WILL MAKE THE ECONOMIC SECURITY VIABILITY OF THE SUPPLY CHAIN EVEN MORE STRONG. BUT PEOPLE HAVE UNDERESTIMATED THE POWER OF TARIFFS AS A LEVERAGE TO BRING COUNTRIES TO THE TABLE TO NEGOTIATE THESE ISSUES THE ADMINISTRATION HAS BEEN TALKING ABOUT.

34:52 >> IS THE POTENTIAL FOR FURTHER TECH RIVALRY AND BIFURCATION OF AI ECOSYSTEMS SOMETHING WE HAVE NOT REACHED A PINNACLE YET WITH? >> I THINK THAT IS RIGHT. WE ARE IN THE BEGINNING STAGES. IF I’M USING A BASEBALL ANALOGY, WE ARE IN THE EARLY INNINGS OF THE AI TECH RACE BETWEEN THE U.S. AND CHINA. I THINK THE U.S. APPROACH OF HANDS-OFF REGULATION IS GOING TO HELP THE INNOVATORS IN THE U.S. ECONOMY CONTINUE TO INNOVATE NOT ONLY ON THE HARDWARE SIDE, BUT THE SOFTWARE SIDE. IT WILL BE INTERESTING TO SEE

35:26 HOW THIS PLAYS OUT – HOW THEY REACT. >> WHAT ARE CLIENTS MOST INTERESTED IN OR CONCERNED ABOUT? – IN TERMS OF WHAT EVERYONE IS WORRIED ABOUT, POST MIDTERMS, THERE IS UNCERTAINTY ON WHAT IT IS GOING TO BE FOR U.S. POLICY GOING FORWARD. I ACTUALLY DON’T THINK, LIKE I SAID, IF IT MAKES A BIG DIFFERENCE. BUT I DO THINK THIS CONFLICT IN IRAN IS WEIGHING HEAVILY ON INVESTORS MINDS AND CLIENTS MINDS AND HOPEFULLY ONCE HE

35:58 GETS RESULTS, THAT WILL HELP OPEN THE FLOODGATES EVEN MORE FOR MORE INVESTMENT AND TRADE. >> I GUESS IF YOU LOOK AT NOT MUCH MEANINGFUL CHANGES, WHAT CHANGES AFTER THE NEXT PRESIDENTIAL ELECTION? HISTORY WILL TELL US A LOT OF THESE TARIFFS CAN BE STICKY, PARTICULARLY IF IRAN, THE MIDDLE EAST LOOKS LIKE IT IS BEING – DRAWING INTO MORE OF A COLD WAR SITUATION. IS THAT THE RISK? >> IT IS HARD TO PREDICT 2028. IT IS A LONG TIME AWAY IN TERMS OF POLITICS.

36:34 I THINK IRAN WILL CONTINUE – THE MIDDLE EAST WILL CONTINUE TO BE AN ISSUE UNLESS IT IS RESOLVED SOON. THE TARIFFS ARE VERY STICKY. REGARDLESS OF WHO IS PRESIDENT IN 2028, I DON’T SEE A DETRACTION FROM TARIFFS, I THINK THEY ARE HERE TO STAY. WE MIGHT SEE REDUCTIONS ON THE MARGINS WITH CERTAIN TRADING PARTNERS. BUT IT IS HARD TO TAKE AWAY A $200 BILLION TO 300 BILLION DOLLAR REVENUE SOURCE COMING INTO THE U.S. AS A RESULT. >> WHAT ARE THE POLICY QUESTIONS YOU ARE BEING ASKED

37:05 AT THE MOMENT? >> I THINK IT IS WHAT IS THE U.S. APPROACH GOING TO BE IN TERMS OF REGULATION? WE HAVE SEEN THIS TASK FORCE COME TOGETHER WITH ALL OF THE LEADING POWERS, TECH COMPANIES. THE BIG QUESTION FOR INVESTORS IS HOW DOES THE U.S. POLICY TRANSLATE INTO THE GLOBAL SPACE, AND HOW DO OTHER REGIONS LIKE EUROPE, ASIA, HOW ARE THEY GOING TO REACT TO WHAT THE U.S. IS TRYING TO DO? I THINK THERE’S A GOOD OPPORTUNITY FOR PARTNERSHIP WHEN IT COMES TO THE AI TECH STOCK REPORT, THE CHINESE TECH

37:38 STOCK. THERE’S OPPORTUNITY FOR OTHER PARTS OF THE WORLD TO COLLABORATE WITH THE U.S. >> DO YOU SEE THAT PATH CONVERGING WITH THE U.S. AND CHINA? JUST THE GREAT STRATEGIC COMPETITION ABOUT TIME THAT IN MANY WAYS WILL NEVER TRULY BE RESOLVED? >> I THINK IT WILL BE CHALLENGING. AT THE SAME TIME, BOTH COUNTRIES CAN LEARN A LOT FROM EACH OTHER IN TERMS OF THEIR TECH MODELS. ONE OF THE GREAT THINGS I HAVE SEEN POST THE TRUMP XI SUMMIT IS THE COMMITMENT TO AI AND AROUND SAFETY AND GOVERNANCE

38:11 BECAUSE I THINK IT WILL BE A BIG ISSUE GOING FORWARD. IF THAT IS A PATH FORWARD WHERE COLLABORATION BEGINS WITH THE U.S. AND CHINA, THAT IS A GOOD THING. >> THE ROLE OF MULTILATERAL AND BILATERAL TRADE AGREEMENTS IS INTERESTING. WE ARE SEEING MORE ASSERTIVE ACTION FROM CHINA, THE EU, THERE IS TALK ABOUT THE TPP, WHAT USED TO BE KNOWN AS THE TPP I’M A POTENTIALLY INCLUDING THE EU, WE KNOW THAT CHINA WAS INTERESTED AT ONE POINT. WHAT IS THE FUTURE TRADE WHEN

38:42 IT COMES TO MULTILATERAL AGREEMENTS? >> I DON’T WANT TO SAY MULTILATERALISM IS DEAD, BUT I THINK REGIONALISM IS ALIVE. TO YOUR POINT ABOUT SEEKING TPP, YOU CAN LOOK AT USMCA, OTHER TYPES OF REGIONAL ARRANGEMENTS THAT ARE RESHAPING GLOBAL TRADE. GLOBAL TRADE IS NOT RECEDING, IT IS BEING DIVERTED IN DIFFERENT WAYS. I THINK THE REGIONAL PACKS, AND OUR STAFF IS PRIMARILY A

39:13 CHINESE LEAD, THESE ARE RESHAPING SUPPLY CHAINS IN DIFFERENT PARTS OF THE WORLD. I WOULD ALSO LOOK TO ARRANGEMENTS AROUND CERTAIN SECTORS. WE SEE CRITICAL MINERALS AS A HUGE COMPETITION BETWEEN THE U.S. AND CHINA, BUT I THINK AS A SUPPLY CHAIN, IT IS CONCENTRATED. SO YOU ARE SEEING NEW ARRANGEMENTS, WHETHER IT IS CRITICAL MINERALS, WE COULD SEE SOMETHING AROUND TECHNOLOGY. I THINK IT IS SORT OF THE WAY OF THE FUTURE. IT IS HARD TO GET MULTILATERAL AGREEMENTS IN TODAY’S GEOPOLITICAL FRAMEWORK.

39:44 I THINK REGIONALISM, SECTORAL TYPE OF PACKS ARE THE WAY THINGS WILL INVOLVE. >> MIDDLE NATIONS LIKE AUSTRALIA ARE IN AN INTERESTING POSITION, PARTICULARLY NATIONS THAT HAVE A SPECIFIC ADVANTAGE, CRITICAL MINERALS, FOR EXAMPLE. WHERE DO YOU SEE THE OPPORTUNITIES FOR INVESTORS AND GOVERNMENTS TO BE ABLE TO MANEUVER THAT WITHOUT COMPLETELY UPSETTING THE TRADITIONAL ALLIANCES IN PLAY? >> IF YOU TAKE AUSTRALIA FOR EXAMPLE, AUSTRALIA HAS A LOT OF

40:15 WHAT THE WORLD NEEDS IN TERMS OF ENERGY AND CRITICAL MINERALS AND TECHNOLOGY. THEY ARE IN A UNIQUE POSITION, WHETHER IT IS TEAMING UP WITH THE U.S. OR EUROPE, IT IS CREATING MORE OPPORTUNITIES, NOT LESS. IT SORT OF GIVES MORE FREEDOM TO NATIONS THAT HAVE THIS ABILITY TO SUPPLY THE WORLD, TO HAVE NEW KINDS OF TRADE ARRANGEMENTS. >> REALLY GREAT TO HAVE YOU WITH US, TWO WEEKS UNTIL THE U.S. MIDTERMS ARE REALLY OPENING IN SOME PLACE. THE HEAD OF THE U.S. GOVERNMENT AFFAIRS AT CITI.

40:51 >> AND WE CONTINUE TO WATCH THE LATEST DEVELOPMENT SURROUND ARTIFICIAL INTELLIGENCE AS WE ARE JUST HEARING OF BREAKING NEWS OPENAI SAYING THE TWO AGENTS NOW DISABLED THE MISALIGNMENT MONITORS. IT IS ESSENTIALLY A SAFETY SYSTEM TO MONITOR THE AI AGENTS. WE ARE HEARING TWO AGENTS WEAKENED THE ALIGNMENT MONITORING. WE ARE CONTINUING TO HEAR THE LATEST FROM OPENAI, THAT THEY ARE PROBING WHETHER THE MODELS EVADE MISALIGNMENT MONITORING. THIS COMING AT A TIME WHEN THEY ARE TRYING TO UNDERSTAND WHY

41:25 MODELS ARE DISABLING THIS SORT OF MONITORING FROM OPENAI, DEVELOPING VALUATIONS TO TEST THE PROPENSITY MISALIGNMENT. THEY WILL INVESTIGATE THIS BEHAVIOR AND ALSO REALLY COMING ON THE BACK OF WHAT HAPPENED BACK IN JULY WHEN WE HAD THE HUGGING FACE INCIDENT, WHEN AI AGENTS RUNNING ON OPENAI – SECURITY BENCHMARK ACTUALLY ESCAPED THEIR SANDBOX. NOW ANOTHER REPORT THAT THEY WILL – BE PROBING WHETHER THEY EVADE THE MISALIGNMENT

41:57 MONITORING AS THEY FOUND TWO AGENTS THAT WE THIS SORT OF MONITORING. LOWER’S INCIDENTS DID NOT TRIGGER PAGE, BUT THEY ARE STILL INVESTIGATING THE LATEST DEVELOPMENTS. IN THE MEANTIME, FOLLOWING THE LATEST WHEN IT COMES TO WHAT IS HAPPENING ON THE FUNDING SIDE OF THE AI TRADE. THIS IS THE AUSTRALIAN COMPANY THAT DROPPED ITS IPO PLANS. NVIDIA NOW APPARENTLY MOVING TO BACK THIS FIRM.

42:28 THE INFORMATION AND REPORTING THAT NVIDIA IS IN TALKS TO INVEST HUNDREDS OF MILLIONS AFTER THEY DROPPED THEIR IPO PLANS, COMING AT A TIME WHEN WE CONTINUE TO SEE MORE SKEPTICISM AROUND THE FUNDING OF THE AI MARKET. RECENTLY IT HAS REALLY BEEN AROUND THE NEO-CLOUD SELLOFF WE ARE SEEING GLOBALLY AT THE MOMENT. MORE AHEAD, THIS IS BLOOMBERG. ♪ SHERY:

43:08 BREAKING NEWS IN JAPAN. THE SEPTEMBER EXPORTS NUMBERS RISING 16.7% YEAR ON YEAR, COMING IN BELOW ECONOMIST EXPECTATIONS, ALSO SLOWING DOWN FROM THE PREVIOUS MONTH IN AUGUST. IT IS INTERESTING BECAUSE WE SEE IN THE SLOWDOWN IN THE MONTH OF AUGUST FROM THE PREVIOUS MONTH. WE ARE SEEING A FURTHER SLOWDOWN FOR THE MONTH OF SEPTEMBER. IMPORTS GROWING 18 POINT 9%, BELOW ECONOMIST EXPECTATIONS. A BIG SLOW DOWN FROM THE PREVIOUS MONTH. WHEN IT COMES TO THE IMPORT SIDE OF THINGS, WE’VE SEEN

43:40 HIGHER CRUDE OIL PRICES DRIVING UP THE IMPORT COSTS, WHICH HAS LED TO A HUGE TRADE DEFICIT. WE STILL HAVE A TRADE DEFICIT FOR THE MONTH OF SEPTEMBER COMING IN AT 536 ¥.5 BILLION. THIS IS A SMALLER DEFICIT THAN THE PREVIOUS MONTH IN AUGUST. BUT STILL A DEFICIT. WE WILL CONTINUE TO WATCH THE TRADE NUMBERS. EXPORTS TO CHINA RISING MORE THAN 8%. TO THE U.S., MORE THAN 20 PERCENT. IT HAS BEEN A YEAR SINCE TICKET POWER. AND TAKAICHI IS STAGING $2.3

44:15 TRILLION TO REVIVE THE NATION’S ECONOMY. BLOOMBERG ORIGINALS HAS BEEN SEEING IF SHE CAN DELIVER GROWTH WITHOUT ADDING TO THE ENORMOUS DEBT OF THE COUNTRY. HERE IS A PREVIEW. >>’S AND I THANK EACH HE IS NOT YOUR TRADITIONAL JAPANESE PRIME MINISTER. BUT HER AMBITION FOR JAPAN IS SERIOUS. >> SHE FEELS IT SHOULD BE SHOULDER TO SHOULDER WITH OTHER MAJOR ECONOMIES. SHE’S PROPOSING A RADICALLY DIFFERENT PLAN.

44:48 >> CENTRAL TO WHICH IS 370 TRILLION YEN OF INVESTMENTS BY 2040 ACROSS CHIPS AND AI, DEFENSE, FOOD TECH, AND SHE IS ATTEMPTING HER PLAN AGAINST A DAUNTING BACKDROP. >> DEBT TO GDP IN JAPAN IS ALREADY THE HIGHEST ACROSS G10. >> DEMOGRAPHIC CHALLENGES, AGING POPULATION, THE NUMBER OF CHILDREN BEING SO LOW. >> CHINA’S TOP DIPLOMAT SUGGESTED RELATIONS WITH JAPAN ARE AT A LOW POINT. >> PEOPLE ARE STILL FEELING THE PAIN FROM HIGHER LIVING COSTS. INFLATION COULD BE THE MAKE OR BREAK ISSUE.

45:21 >> WHEN TAKAICHI TOOK OVER THE RULING THAT BROUGHT DEMOCRATIC PARTY, SHE TURNED PERSONAL POPULARITY INTO AN ELECTION LANDSLIDE. NOW, SHE HAS A ROOM TO PURSUE A PLAN THAT COULD REVIVE THE WORLD’S FOURTH LARGEST ECONOMY OR LEAVE IT WITH CATASTROPHIC BILLS AND THE SAME OLD PROBLEMS. >> YOU CAN SEE THE REPORT IN FULL ON THE TERMINAL ARE BLOOMBERG.COM AND WILL BE ON THE BLOOMBERG ORIGINALS YOUTUBE CHANNEL AS WELL. TAKE A LOOK AT HOW WE ARE

45:52 SETTING UP FOR THE MARKET OPENS ACROSS ASIA. FOLLOWING THE BOND SPACE VERY CLOSELY BECAUSE U.S. TREASURIES SAW A LITTLE BIT OF A REBOUND IN THE PREVIOUS SESSION. OIL PRICES, EARNINGS AND THE ASIAN SESSION RETREATED. ESPECIALLY FROM THEIR HIGHEST LEVELS IN WEEKS. THAT HELPS WITH A LITTLE BIT OF THE TREASURY REBOUND. ALSO SOME SOFTENING ON THE U.S. ECONOMIC DATA INCLUDING THE FALL IN SEPTEMBER HOUSING STOCKS. WE WILL BE SEEING THAT

46:24 FOLLOW-THROUGH PERHAPS IN THE ASIAN SESSION, ESPECIALLY IN JGB SINCE WE HAD THE 20 YEAR OPTION DRAWING THE STRONGEST DEMAND ON RECORD. SHOWING THE ELEVATED YIELDS ARE STARTING TO LOWER DOMESTIC INVESTORS BACK INTO THE MARKETS. ON THE STOCK SIDE OF THINGS, FUTURES POINTING HIGHER. U.S. STOCKS GAINING GROUND AFTER HOURS FOR SPACEX. THE NET MORE THAN DOUBLING WHEN ECONOMISTS AND ANALYSTS HAD EXPECTED. KOSPI FUTURES ALSO FINISHED ABOUT HIGHER THAN 2%. THE MARKET OPENS IN SEOUL AND TOKYO ARE NEXT. THIS IS BLOOMBERG.

47:16 SHERY: THIS IS “THE ASIA TRADE.” WE ARE COUNTING DOWN TO ASIA’S MAJOR MARKET OPENS AS WE ARE CONTINUING TO WATCH THE LATEST WHEN IT COMES TO AI EARNINGS. THIS IS THE LATEST TEST FOR THE MARKETS. WE ARE SEEING SPACEX, FOR EXAMPLE, BEATING ESTIMATES, THEY’RE NOT ACTUALLY MORE THAN DOUBLING THAT ESTIMATE. AT THE SAME TIME, HOW MUCH CAPITAL IT TAKES FOR SOME FRONTIER MODELS. WE ARE GETTING THE LATEST

47:47 PERHAPS FROM ANTHROPIC. AND AS WE CONTINUE TO SEE SKEPTICISM ON NEO-CLOUDS, WE WILL BE WATCHING SOUTH KOREA. HAIDI: YEAH. THE NEW STORY IS INTERESTING IN HOW MUCH PRESSURE WE SEEK OF A CENTER ADJACENT STORIES, AND AUSTRIA, FOLLOWED BY OVER 40% AT SOME COMMUNITY BACKLASH ISSUES COULD PLAY OUT. LOTS OF FLASHPOINTS ABOUT WHAT WE ARE SEEING IN THIS SPACE, SHERY. SHERY: TAKE A LOOK HOW JAPAN IS OPENING AT THE MOMENT, AS WE ARE SEEING THE NIKKEI REVERSING

48:21 TWO SESSIONS OF LOSSES AND GETTING MORE THAN 1% OF THE JAPANESE HOLD AS THE – AT THE 158 LEVEL. THE 10 YEAR YIELD BELOW THE 3% LEVEL. IN JAPAN, THE STRONGEST DEMAND ON RECORD. ELEVATED YIELDS, WE ARE TALKING MID-1990’S LEVELS HERE IN JAPAN, FOR THE 10 YEAR YIELD, THE 30 YEAR YIELD. THAT IS STARTING TO LEARN DOMESTIC – LURE DOMESTIC INVESTORS BACK INTO MARKET.

48:52 THIS IS A SLOWDOWN FROM THE AUGUST NUMBER BUT STILL STRONG WHEN IT COMES TO ELECTRONIC COMPONENTS, SHIPMENTS. TAKE A LOOK AT SOUTH KOREA. WE ARE GETTING THE LATEST EXPORT NUMBERS OUT OF SOUTH KOREA AS WELL, OF COURSE, FOR THE FIRST 20 DAYS OF THE MONTH. WE ARE TALKING ABOUT GAINS IN EXPORTS. SHOULD I SAY GAINS OR SURGE, 105.4% YEAR ON YEAR. VERY STRONG NUMBERS FOR SOUTH KOREA. OF COURSE WE ARE WATCHING SAM’S, SK HYNIX, AND THE LIKE.

49:23 COMING IN AT OVER $14 BILLION BID IN SOUTH KOREA, IT’S NOT JUST THE SEMICONDUCTOR STORY WE ARE WATCHING. LOOK AT THAT STOCK, THEN NEIL CLOUD PROVIDER SAW THE WORST EVER OPENING DAY FOR A SIZABLE KOREAN IPO. THEY PLUNGED MORE THAN 30% ON THEIR TRADING DAY VIEW. WE ARE STILL WAITING TO – WAITING FOR IT TO START TRADING. WE WILL BE SPEAKING TO THEIR CEO IN A FEW MINUTES. TAKE A LOOK AT HOW U.S. FUTURES ARE SETTING UP. WE SAW THE GAINS IN THE AFTER HOURS THE SESSION.

49:54 I MENTIONED THE SPACEX BEAT. WE ARE SEEING THE U.S. STOCK FUTURES GAINING GROUND AS WE FOLLOW THE SOVEREIGN DEBT SPACE AS WELL, BECAUSE TREASURY HAS SEEN A BIT OF A REBOUND. NOW, OIL PRICES RISING SLIGHTLY IN THE ASIAN SESSION. BRENT IS STILL UP 80% YEAR TO DATE, BUT THEY HAD SORT OF RETREATED FROM THESE VERY HIGH ELEVATED LEVELS, AND THAT ACTUALLY LEAD TO A LITTLE BIT OF A REBOUND IN THE TREASURY SPACE. LET’S DISCUSS ALL OF THIS WITH MARTIN HORNE, COHEAD OF GLOBAL INVESTMENTS AT BARING.

50:26 GREAT TO HAVE YOU WITH US. SO MUCH TO DIGEST THIS MORNING. WHAT STANDS OUT TO ME IS THE AI TRAIN AND THE DIVERSIONS WE ARE SEEING FROM THE LIKES OF THOSE – DIVERGENCE WE ARE SEEING FROM THE LIKES OF THOSE, SPACEX PROVIDING EVIDENCE OF THOSE, BUT THE SAME TIME, THE FUNDING CRASH OF THE CLOUD PROVIDERS – NEIL CLOUD PROVIDERS CATCHING MY ATTENTION. WHAT ARE YOU FINDING FROM INVESTORS ABOUT WHERE TO PUT POTENTIAL? MARTIN: YEAH. GOOD MORNING, SHERY.

50:58 I THINK WHAT WE SAW WAS HEALTHY FOR THE AI STORY, BECAUSE WHAT WE NEED IS A MATURING OF THE MARKET. NOT EVERYONE THAT TURNS OFF WITH AN AI TAG WAS GOING TO GET FUNDED THROUGH THESE MARKETS. THESE MARKETS ARE SEEING RECORD LEVELS OF CAPITAL BEING ISSUED INTO THEM, TO FUND THE ONGOING SURGE IN INFRASTRUCTURE BUILDUP THAT WILL BE NECESSARY FOR THIS STORY TO PLAY OUT. AND UNLIKE THE DOT-COM BUBBLE, WHAT YOU ARE STARTING TO SEE AS MARKET PARTICIPANTS ARE

51:29 DISTINGUISHING BETWEEN WHAT THEY SEE AS THE GOOD AND BAD AND IN DIFFERENT STORY. ARE THEY GOING TO DEMAND AN INCREASING PRICE TO FIND THAT SOME OF THOSE STORIES, OR THEY ARE GOING TO DEMAND STRUCTURE IMPROVEMENTS IN THE WAY THOSE STORIES ARE LAID OUT IN THE MARKET. SHERY: YEAH. LIKE I MENTIONED ELIS, FOR EXAMPLE, WHICH SEEMS TO BE HALTED IN THE TRADING SESSION IN SOUTH KOREA RIGHT NOW, FALLING MORE THAN 30% OF THEIR TRADING DAY VIEW. WHEN IT COMES TO THE FUNDING CRASH WE ARE SEEING, THE

52:02 DISCONNECT BETWEEN WHAT INVESTORS ARE SEEING AND WHAT THOSE AI COMPANIES ARE SAYING, EVERYONE BUILDING, THE BRICK AND MORTAR AS WELL, THERE’S A LOT OF AI DEMAND OUT THERE. HOW DO YOU DISCERN WHO WINS AND WHO LOSES IN THIS BATTLE THAT IS NOT NECESSARILY SEEM TO HAVE A CONCRETE ANSWER WHERE AI DEMAND WILL ACTUALLY LAND IN A FEW YEARS? MARTIN: YEAH. I THINK IT JUST REVERTS BACK TO ANALYSTS DOING WHAT ANALYSTS DO AND COMING UP WITH A PROFILE IN WHICH THEY ARE COMFORTABLE.

52:35 YOU ARE DEALING WITH THE MANY ISSUES ASSOCIATED WITH EAI SP – THE AI SPEND PATTERNS. YOU HAVE TO DEAL WITH THE RISK OF OBSOLESCENCE. THE TECHNOLOGY IS MOVING SO FAST. YOU HAVE TO DEAL WITH THE COUNTERPARTS. YOU SAW IN THE U.K., MICROSOFT WITHDREW FROM ONE OF THE DATA CENTER PROJECTIONS BASED ON THE IMPERFECT BUILDOUT PROFILE COULD . ALL OF THESE HAVE TO BE PUT IN A BOX AND ANALYZED, THE SAME WAY WE DID WITH THE OLD WILL ECONOMY, AND THE MARKETS WILL

53:09 MAKE IT A STARTING CHOICE. EVERY INVESTOR YOU TALK TO, NOT JUST IN THIS REGION BUT AROUND THE PLANET, IS TALKING ABOUT THE RISK INCUMBENT IN THIS MOVEMENT AND THIS INDUSTRIAL REVOLUTION, IF YOU’D LIKE. SO IT FEELS DIFFERENT TO ME FROM THE DOT-COM BUBBLE. UNFORTUNATELY, BOLD ENOUGH TO REMEMBER WHAT THAT LOOKED LIKE, AND THAT IS A SURGE OF MONEY GOING IN ONE DIRECTION UNTIL THE MUSIC STOPS. NOW AT LEAST WE ARE MAKING DISCERNING CHOICES, AND YOU WILL SEE A LOT OF VOLATILITY AROUND NAMES, AS THE EARNINGS

53:40 SEASONS WILL BE INTERESTING BECAUSE THE MARKET WILL PUNISH THOSE THAT IT DOES NOT SEEM WORTHY OF THE CAPITAL INJECTION REQUIRED FOR SOME OF THESE STORIES. SHERY: TO YOUR POINT OF VOLATILITY, WE ARE SEEING ABOUT 20% GAINS FOR ELICE IN THE SECOND DAY OF TRAINING FOR THE STOCKS. RATES BACK UP, TREASURY YIELDS 5% HIGHER FOR LONGER PERHAPS, NOT TO MENTION ALL OF THESE MASSIVE AI BORROWING AS WELL. WHEN IT COMES TO THE CREDIT MARKET, SHOULD WE BE WATCHING

54:11 OUT FOR ANY SIGNS OF STRESS? MARTIN: YEAH. LOOK, I THINK IT’S THE MOST OF SEPTEMBER AND INTO OCTOBER, THE TREASURY MARKET LOOKS FRAGILE, RIGHT? WE SEE THE SIGNIFICANT MOVEMENT PLUS 50 BASIS POINTS UP ON THE LONG END OF THE CURVE. AND THEN LAST WEEK, WHAT HAPPENED TO THE AI STORY AND THE EXIT MARKET, PEOPLE REVERTED AND USED THE U.S. TREASURY MARKET ALMOST AS A SAFE HAVEN ASSET CLASS, THE

54:42 ONLY SAFE HAVEN ASSET CLASS OF ANY SIGNIFICANT SIZE. YOU SAW THAT CURVE FLATTENING. SO I THINK I’M A LOOK, SOVEREIGNS GENERALLY REMAIN VULNERABLE COULD WE HAVE THIS BEAUTIFUL CONVERGENCE OF EVENTS WHERE YOU HAVE THIS INCREASED FOCUS ON BUDGET DEFICITS AND INDEBTEDNESS LEVELS. YOU SAW THE MARGINAL BUYERS LIKE NORWAY, CHINA, JAPAN MOVING AWAY FROM THINGS LIKE TREASURY BUYING IN THE BULK THAT THEY USED TO. YOU’VE GOT THE AI COMPETITION,

55:13 IF YOU’D LIKE, AND THEN YOU GOT INFLATION AT THE LONG END, MARKET VOLATILITY ADDS TO THE NEEDS TO MAKE SOME ANALYSIS ON WHAT THE TERM PREMIUM NEEDS TO LOOK LIKE IN SOME OF THESE LONGER -END BONDS. SO, THAT MARKET IS NOT AS HEALTHY AS PERHAPS LAST WEEK WOULD HAVE INDICATED. I THINK WE ARE STILL GOING TO HAVE HEADLINES ASSOCIATED WITH IT, AND WE ARE GOING TO MOVE ENOUGH STEPS. AT THE AI STORY IN THE SOVEREIGN STORIES ARE MOVING IN

55:45 LOCKSTEP, AND THEY ARE GOING TO BOUNCE OFF EACH OTHER. AT DIFFERENT TIMES, THEY ARE GOING TO CAUSE YOU GUYS DIFFERENT HEADLINES TO TALK ABOUT. SHERY: OUTSIDE OF ARTIFICIAL INTELLIGENCE, OUTSIDE OF THE DEBT SPACE AS WELL, IS THERE ANYTHING THAT IS APPEALING TO YOU AT THE MOMENT OR THAT YOU WOULD BE MORE CAUTIOUS ABOUT INVESTING IN? MARTIN: I THINK, AGAIN, YOU GO BACK TO FUNDAMENTALS. I AGREE WITH ONE OF YOUR EARLIER STATEMENTS, WE ARE CLEARLY IN A HIGHER FOR LONGER ENVIRONMENT. IF YOU ARE GOING TO HAVE

56:16 ELEVATED INTEREST RATES AND INFLATION, YOU WILL BE MORE CAUTIOUS ABOUT SOME CLASSIC CYCLICALS. YOU WILL BE MORE CAUTIOUS ABOUT THE AREAS, BUILDING PRODUCTS, CONSUMERS SPEND, AND YOU MAY BE MORE INPATIENT TOWARD SOME OF THE DEFENSIVE, THE LIKES OF HEALTH CARE, INFRASTRUCTURE, AND UTILITIES. BUT THERE’S GOING TO BE A LOT OF IDIOSYNCRATIC STORIES AS WE GO ALONG THE PATHWAY. THE THING ABOUT THE AI EVOLUTION THAT WE ARE GOING THROUGH IS THERE’S GOING TO BE

56:48 SOME HUGE WINNERS AND HUGE LOSERS, AS THE TECHNOLOGY FUNDAMENTALLY CHANGES THE FOOTPRINT OF THE INDUSTRIAL LANDSCAPE THAT WE ARE ALL USED TO DEALING WITH. SOME BIG NAMES ARE GOING TO BENEFIT FROM THAT, AND SOME BIG NAMES ARE GOING TO BE SOMEWHAT IMPACTED. YOU’VE GOT TO LOOK FOR RESILIENCE AND DIVERSITY OF INCOME STREAMS WHEN YOU ARE THINKING ABOUT YOUR INVESTMENTS IN WHATEVER PORTFOLIO YOU ARE CONSIDERING. SHERY: MARTIN HORNE, GOOD TO HAVE YOU WITH US, COHEAD OF GLOBAL INVESTMENTS AT BARING.

57:21 FOLLOWING THOSE TECH MOVES TODAY, WE ARE SEEING INVESTORS STILL CROWDING SOME OF THESE NAMES. SK HYNIX UP ALMOST 5% AT THE MOMENT, WITH SAMSUNG ALSO GAINING MORE THAN 3%. MEMORY MAKER HERE IN JAPAN, KIOXIA UP, ALSO SOFTBANK UP. NO SURPRISE AND WE SEE THESE GAINS, SPACEX BEATING ESTIMATES, TALKING ABOUT A POTENTIAL MERGER WITH TESLA. WE HAVE MEGA CAP TECH EARNINGS STILL IN FOCUS, WITH META BEING

57:53 NEXT. BUT GIVEN ALL OF THIS EXUBERANCE AND ALSO PERHAPS A LITTLE BIT OF SKEPTICISM, WE HAVE A LOT OF COMMENTARY COMING FROM INVESTORS. KEN GRIFFIN ONE OF THE DATA TAKE A LISTEN TO WHAT HE SAID ABOUT ALL OF THIS AI TECH INVESTMENT. KEN: THERE WAS ALMOST CERTAINLY BUBBLES WITHIN THIS MOMENT OF TIME, AND ANY RADICAL TRANSFORMATION OF OUR ECONOMY IS GENERALLY INTERTWINED WITH THE BUBBLE. HAIDI: RESULTS FROM SPACEX COULD HELP

58:27 EASE SOME OF THOSE FEARS OF AN AI BUBBLE. LET’S BRING IN OUR ASIAN TECH CORRESPONDENT ANNABELLE DROULERS . IT WAS A TOUGH QUARTER. ANNABELLE: YEAH. BUT WE WERE HEARING FROM KEN GRIFFIN CERTAINLY A LOT OF POSITIVES. JUST TO GIVE, RECAP SOME OF THE HEADLINES, WE HAVE REVENUE AND ETF’S BLOW OUT HERE. REVENUE OF $14.85 BILLION, BEATING THE CONSENSUS ESTIMATE BY NEARLY 50%.

59:01 AND IMPORTANTLY, WE SAW A NET INCOME OF 4.4 BILLION DOLLARS, THE FIRST QUARTERLY PROFIT WE ARE SEEING FOLLOWING THE IPO IN JUNE OF THIS YEAR, REVERTING SOME PRIOR LOSSES FOR THE BUSINESS AS WELL. AI SEGMENT, AS I SAID, THE KEY FOCUS OUT OF THESE NUMBERS. THE AI SEGMENT REVENUE REACHING $4.95 BILLION, WELL AHEAD OF THE 50% BEAT FOR THAT, IN THE CFO NOTING CLOUD SERVICES REMAIN PARTICULARLY ROBUST.

59:37 STARLINK AGAIN DEMONSTRATING STRONG ECONOMICS, EXPLOSIVE REVENUE GUIDANCE, IF YOU FOR THE FIRST QUARTER OF 2027. AND THEN CAPEX, SIGNALING HEAVY INVESTMENT, EXPECTED TO COME IN THE FOURTH QUARTER 2026 SOMEWHERE BETWEEN $35 BILLION TO $40 BILLION, NOT THE CONTINUED AGGRESSIVE INVESTMENT INTO INFRA STRUCTURE BUT ALSO SATELLITE CAPACITY. HAIDI: WE ALSO GOT A BIT MORE NEWS WHEN IT COMES TO THE POTENTIAL

1:00:08 MERGER BETWEEN SPACEX AND TESLA. ANNABELLE: YEAH. THIS IS AN INTERESTING ONE, BECAUSE, OF COURSE, SINCE THE SPACEX LISTING, THERE CO HAS BEEN A LOT OF DISCUSSION, COULD WE SEE A MERGER BETWEEN THE TWO BUSINESSES? SPACEX IS IT WORTH $2 TRILLION, TESLA ONE POINT $5 TRILLION, SO THESE TWO WOULD BE A SIGNIFICANT, A HUGE TIE UP IF IT ACTUALLY DID GO AHEAD. ELON MUSK SPOKE ABOUT THIS IN THE EARNINGS AND SAYS THERE’S BEEN A SPECIAL COMMITTEE THAT’S

1:00:39 BEEN FORMED. THEY ARE DISCUSSING THIS PROSPECT. HE HIMSELF IS NOT TAKING PART OF THE DISCUSSIONS BECAUSE OF THE CONFLICTED PARTY. AND THE COMMITTEE HAS YET TO AGREE ON ANY SORT OF TERMS. BUT AS I SAID, IT WOULD RANK CAMESA DID GO AHEAD COME AS ONE OF THE LARGEST CORPORATE TYPES OR THE LARGEST CORPORATE TIE UP OF ALL TIME. THE TWO DIFFERENT BUSINESSES, INDEED THEY ARE CUSTOMERS OF EACH OTHER’S PRODUCTS ALREADY. MUSK

1:01:10 CAUTIONING THIS IS NOT ANY CERTAINTY. IT DOES REQUIRE 10 SHAREHOLDER SUPPORT, FROM 50% OF ALL OF THEM, NOT JUST THE SIMPLE MAJORITY OF THOSE THAT ARE VOTING. HAIDI: DO WE HAVE ANY MORE DETAILS WHEN IT COMES DOWN TO PLANS AND THE DEER UP AHEAD OF THE IPO? ANNABELLE: YEAH. WE’VE BEEN REPORTING AT BLOOMBERG THAT IT COULD BE MARKETED AS EARLY AS THE BEGINNING OF NOVEMBER, AROUND NOVEMBER 9, TRADING COULD BEGIN

1:01:43 AROUND THANKSGIVING OR AHEAD OF THAT. BUT ESSENTIALLY WHAT WE DID GET IS REPORTING FROM THE “WALL STREET JOURNAL,” AND THEY ARE TALKING ABOUT THE FILING OR THE PROSPECTUS, PART OF THE PAPERWORK NEEDED AHEAD OF ANY SORT OF LISTING. WE GOT SOME FIGURES ON THE EXPECTED TO SPEND ON ADDITIONAL COMPUTING POWER. THE “WALL STREET JOURNAL” IS SAYING $750 BILLION COULD BE SPENT IN THE COMING YEARS. AS A HUGE INCREASE FROM WHERE WE ARE TODAY. YOU CAN SEE THERE IS WELCOME A $450 BILLION IN CLOUD AGREEMENTS, OFFICIALLY BUYING

1:02:14 OUT COMPUTE POWER AGREEMENT. THEY ARE WORTH ABOUT $450 BILLION OVER THE COMING SEVEN YEARS TO 10 YEARS. THE MAJORITY OF THOSE CANNOT BE CANCELED, SO SPLIT ROUGHLY BETWEEN AMAZON, ALPHABET, AND IT ALSO MICROSOFT TAKING A SLIGHTLY SMALLER SHARE. DAMAGES BY AI, SOMETHING ELSE IN THE PROSPECTUS, WE ALREADY HAVE THOSE WARNINGS, FOR INSTANCE, FROM OPENAI ABOUT AGENTS ESSENTIALLY GOING ROGUE. ANTHROPIC LIKEWISE FLAGGING SIMILAR SORTS OF TONE. HAIDI:

1:02:48 AS ANNABELLE JUST MENTIONED, WE CONTINUE TO WATCH THE ISSUE AROUND OPENAI, DISCLOSING THAT TWO OF ITS AI AGENTS INDEPENDENTLY DISABLED OR SUPPRESSED MONITORING SAFEGUARDS THIS MONTH’S WHILE CARRYING OUT ROUTINE TESTS. ONE DISABLED A HUMAN ALERT NOTIFICATION, AND THE OTHER MOVES MONETARY INTEGRATION AND THEN DENIED DOING SO. OPENAI IS INVESTIGATING WHETHER OR NOT THE INCIDENTS REFLECT DELIVERED EVASION, OR WHAT IT CALLS “ BENIGN,” OR PERSISTENT.

1:03:30 NVIDIA IN TALKS TO BUY FIRMUS. FIRMUS IS TRYING TO PRIVATELY RAISE AT LEAST $2 MILLION FOLLOWING ITS FAILED SEE THE IPO. NVIDIA WAS POISED TO INVEST A SIGNIFICANT AMOUNT OF CAPITAL IN THAT DEAL. WE HAVE MORE AHEAD ON “THE ASIA TRADE.” YOU ARE WATCHING BLOOMBERG.

1:04:11 >> EVEN THE DEGREE OF UNCERTAINTY IN THE CURRENT INTERNATIONAL ENVIRONMENT, MEMBER ECONOMIES SHOULD STRENGTHEN THE ROBUSTNESS OF THEIR OWN ECONOMIC POLICY, THE POLICY COORDINATION AND RESULTING POLICY ADJUSTMENTS. SHERY: THAT WAS THE CHINESE FINANCE MINISTER LAN FO’AN, AND THERE IS UNCERTAINTY.

1:04:46 WE BRING IN CHINA CORRESPONDENT MINMIN. MINMIN: IT’S NOT OFTEN WE HAVE THEM SPEAKING RIGHT HERE IN HONG KONG. HE GAVE A REALLY BRIEF OPENING SPEECH AT THE AIPAC FINANCE MINISTERS MEETING, A LOT OF THINGS THAT REALLY STOOD OUT, NOT ANYTHING THAT IS SURPRISINGLY NEW TO US. HE TALKED ABOUT THE GLOBAL ENVIRONMENT, HOW CHALLENGING IT IS, WITH HIGHER YIELDS PUSHING THAT BORROWING COSTS. HE TALKED ABOUT HOW COMPANY’S ARE BECOMING MORE PROTECTIONIST, AND HE’S CALLING FOR AIPAC COUNTRIES TO WORK TOGETHER, TO OPEN UP THEIR

1:05:23 ECONOMIES, TO PROMOTE MUTUAL GROWTH, AI, DIGITAL AND GREEN ECONOMIES, FOR EXAMPLE, AND, OF COURSE, HE ALSO SEEKS PRAISES ON CHINA’S ECONOMIC GROWTH SO FAR, 4.6 PERCENT GROWTH YEAR TODAY. HE SAID THIS HAS BEEN A MAJOR DRIVER – DRIVER OF GLOBAL GROWTH, AND CHINA WILL CONTINUE TO DOUBLE DOWN, FOR THE FRUITS OF THE LABOR WITH THE REST OF THE WORLD. HAIDI: OPENING UP THE GROUP WITH OTHER DRIVERS, AI AMBITIONS, WHAT DO WE KNOW? MINMIN:

1:05:57 SO THIS IS A STATE OWNED COMPANY BEING MANAGED BY BEIJING, CALLED THE CHINESE NATIONAL DATA GROOVE, AND THIS IS INTERESTING BECAUSE OF THE HIGH LEVEL INAUGURATION CEREMONY WE SAW. YOU CAN SEE THE VICE PREMIER DOWN, TO INAUGURATE THE OPENING YESTERDAY. SO THIS SHOWS YOU THE LEVEL OF DIRECT INVOLVEMENT FROM THE TOP LEADERSHIP, RIGHT? IN THE SIGNAL HERE – IN THIS, BY THE WAY, IS BROUGHT BY CROSS STATE MEDIA. THE SIGNAL IS IF YOU ARE A LOCAL GOVERNMENT, LOCAL AUTHORITY, A COMPANY ASKED TO

1:06:29 WORK WITH A GROUP, YOU VERY WELL, YOU KNOW, OPEN UP AND ENSURE THAT ENOUGH RESOURCES DEDICATED TO THIS, BECAUSE THIS IS A NATIONAL LEVEL STRATEGY TO TRY TO PRESENT WHAT THEY ARE CALLING DATA SILOS, CROSS REGIONAL, CROSS INDUSTRY DATA CENTER, – DATA SHARING, TO CREATE ONE NATIONAL UNIFIED DATA NETWORK. WE PREVIOUSLY REPORTED THAT CHINA HAD DEDICATED OR IS PLANNING TO SPEND ABOUT 2 TRILLION U.S. DOLLARS TO BUILD THIS ACROSS

1:07:02 THE COUNTRY TO FUND ITS AI AMBITION. HAIDI: BLOOMBERG’S CHINA CORRESPONDENT MINMIN LOW. WE HAVE MORE COMING UP ON “THE ASIA TRADE.” THIS IS BLOOMBERG. HAIDI: SEEKING TO BUILD INTERNATIONAL

1:07:34 ALLIANCE IN AUSTRALIA, A WIDENING REGULATION ORE BATTLE AGAINST THE INDUSTRY. WHAT ARE YOU HEARING FROM THE GOVERNMENT GOING LOCAL IN ITS FIGHT AGAINST BIG TECH? PAUL: YEAH. BLOOMBERG NEWS GOT TO SPEAK TO ATTICA WELLS IN A WIDE RANGING CONVERSATION BEEN A GLOBAL COALITION IS NEEDED TO BASICALLY PROTECT AGAINST SOCIAL MEDIA COMPANIES. ONE OF THESE IDEAS INCLUDE

1:08:08 SHIELDING UNDER 18’S FROM ABUSE OF BULLYING PORNOGRAPHY, ALSO THIS INTERNATIONAL GLOBAL COALITION, AND A PART OF THAT AS WELL WOULD BE NEW LEGISLATION BEING CONSIDERED IN EXTRA INCOME OF THE DUTY OF CARE ACT, WHICH WOULD ALLOW USERS TO SWITCH OFF THE ALGORITHM THAT RECOMMENDS SOME CONTENT. THIS WOULD OBVIOUSLY HAVE MAJOR IMPLICATIONS FOR A LOT OF THESE MAJOR SOCIAL NETWORK PLATFORMS, SOCIAL MEDIA PLATFORMS, BECAUSE THIS IS PRETTY MUCH CENTRAL TO THE BUSINESS MODEL. SO GLOBALLY AGREED SAFETY

1:08:39 STANDARDS, MS. WELLS ARGUES, ARE NEEDED COME IN THE WAY THAT FOOD MANUFACTURERS ARE TO ASSURE THE PUBLIC THEIR FOOD IS SAFE, SHE SAYS THE SAME STANDARD SHOULD APPLY GLOBALLY TO SOCIAL MEDIA. HAIDI: WHAT IS HAPPENING WHEN IT COMES TO THIS POSSIBLE LAWSUIT AGAINST SOCIAL MEDIA COMPANIES AS WELL? PAUL: THAT’S RIGHT, THEY ANTICIPATE THERE WILL BE A PROSECUTION UNDER THE LANDMARK LEGISLATION I WAS PASSED IN AUSTRALIA AND CAME INTO EFFECT LAST DECEMBER. THIS WAS, OF COURSE, THE

1:09:12 BANNING UNDER 16S FROM SOCIAL MEDIA PLATFORMS. THAT GOT CRITICIZED, THINK THIS IS PRETTY MUCH UNENFORCEABLE. WELL, IT TURNS OUT IT WILL BE ENFORCED. THE COMMISSIONER HAS BEEN RUNNING AN INVESTIGATION INTO FIVE PLATFORMS, SNAPCHAT, TIKTOK,, FACEBOOK,, INSTAGRAM, AND YOUTUBE AS WELL. THE COMMISSION HAS BEEN GIVEN EXTRA POWERS TO MAKE SURE THIS PROSECUTION OR THIS ACTION COULD POTENTIALLY BE SUCCESSFUL. THE MINISTRY EXPECTS AN ANNOUNCEMENT PRETTY SOON. HERE’S WHAT SHE HAD TO SAY.

1:09:44 MINISTER WELLS: ONE COMMISSIONER TAKING ON THE RICHEST BOOK OF REGAL, SOME OF THE MOST SOPHISTICATED DATA COMPANIES ON EARTH, AND THE WAY SHE IS TO DO THAT IS TO BE CONFIDENT SHE HAVE THE REGIONAL PROSPECTS OF SUCCESS IN THE COURT. SHE ASKS FOR POWERS AND SO THAT SHE HAS AVAILABILITY TO DO THAT, WITH ONLY SOME OF THE PARLIAMENT. SHE’S USING THOSE POWERS TO PREPARE HER CASE. PAUL: SO MINISTER WELLS SAYS SHE DOES EXPECT THERE’S GOING TO BE A

1:10:16 LAWSUIT. IN TERMS OF TIMING, WE DON’T KNOW WHEN, SO WATCH THIS SPACE. SHERY: PAUL ALLEN JOINING US FROM SYDNEY. THERE ARE OTHER TOP HEADLINES WE ARE FOLLOWING. IRAN’S PRESIDENT REPORTEDLY SAYS THE U.S. MUST LIFT ITS THREATS AND SANCTIONS BEFORE AND A NEW DEAL ON ENDING THE WAR. IN A RADIO NEWS AGENCY SAYS THE PRESIDENT MADE THE COMMENT DURING A MEETING IN TEHRAN WITH PAKISTAN’S ARMY CHIEF GET OIL PRICES FELL EARLIER ON A REPORT A BREAKTHROUGH WAS CLOSE, BUT I

1:10:48 DIPLOMAT INVOLVED IN THE NEGOTIATIONS AS WELL TALKS CONTINUE COME THAT REPORT WAS NOT ACCURATE. U.K. PRIME MINISTER ANDY BURNHAM HAS ASKED THE COUNTRY’AIR FORCES TO FLY MISSIONS TO PROTECT SAUDI ARABIA FROM HOUTHI ATTACKS. THE DEFENSE MINISTRY SAYS THAT FLIP FIGHTER JETS WILL BE DEPLOYED TO PROTECT SAUDI’S INFRASTRUCTURE. STRIKES THIS MONTH ON RIATA’ AIRPORT HAVE KILLED MORE –S RIATYADH’S AIRPORT HAVE KILLED

1:11:21 PEOPLE. STOCKMARKETS ARE STABILIZING. WE HAVE CONFLICTED REPORTS WHEN IT COMES TO THE U.S.-IRAN NEGOTIATION, SO THAT LED TO A LITTLE BIT OF A BOUNCE BACK IT COMES TO EUROPEAN EQUITIES. WE DO FOLLOW THE EURO AND EUROPEAN ASSETS, ESPECIALLY SINCE WE HAVE B CONTINUE TO SEE CONCERNS ESPECIALLY AROUND FRANCE. FRANKLIN TEMPLETON SAYING THE FRENCH ISSUE COULD BE WORSE THAN WHAT HAPPENED TO GREECE IN ABOUT TWO DECADES IF THIS

1:11:52 CONTINUES. WE HAVE MORE AHEAD. YOU ARE WATCHING BLOOMBERG. ♪

1:12:40 SHERY: WE ARE SEEING BROAD GAINS ACROSS ASIAN MARKETS TODAY. THE NIKKEI NOW REVERSING TWO SESSIONS OF LOSSES, AROUND 2%. AND IS THE TECH SECTOR ONE OF THOSE LEADERS, AS THE KOSPI IS ALSO GAINING MORE THAN 3.5%. INDUSTRIALS, UTILITIES, MATERIALS ALSO GAINING GROUND, A LOT HAS TO DO WITH WHAT HAPPENED IN THE OVERNIGHT SESSION IN THE U.S., ESPECIALLY AFTER THE SPACEX BEAT WHEN IT COMES TO THEIR EARNINGS COME OF THEIR NET MORE THAN DOUBLING FORECASTS. IN SOUTH KOREA, INTERESTING, THE NEOCLOUD PROVIDER THAT TEND TO MORE THAN 30% ON THEIR

1:13:16 TRADING DEBRIS – DEBUT IS RECOUPING MUCH OF THOSE LOSSES. HAIDI: YEAH. THE DYNAMIC WE ARE LOOKING AT NEXT WITH OUR GUEST, WHO RUNS MARKETS ACROSS AUSTRALIA AND NEW ZEALAND AND ALSO OVERSEAS CITI’S ORIGINAL PLANS, CRISTINA CHANG, THE HEAD OF ANZ MARKETS AT CITI. AUSTRALIA A LITTLE BIT ON THE

1:13:48 BACK FOOT IN TERMS OF THE SESSION TODAY. IT IS AN INTERESTING MARKET IN TERMS OF VIEWED AS LESS TECH, AI FLOWS AHEAD, TRADITIONAL INDUSTRY. OR AT TIMES WHEN WE ARE SEEING A BIG AI BOOM, AND THAT ENTHUSIASM, HOW DO YOU CONCEPTUALIZE – CONTEXTUALIZE WHERE AUSTRALIA IS? CRISTINA: REALLY STRONG REAL ECONOMY TO THIS TECH HEAVY EQUITY INDICES WE ARE SEEING, VERSES IN THE U.S. AS WELL AS IN PARTS OF ASIA.

1:14:21 IN TERMS OF THE REAL ECONOMY, THE STRONG FINANCIAL SECTOR AS WELL AS NATURAL RESOURCES. NATURAL RESOURCES COULD PLAY TO THE AI BOOM AND BUILD OUT. IT HAS MUCH BROADER PARTICIPATION ACROSS INDUSTRIAL GROWTH MORE GENERALLY. WE THINK THESE SECTORS ARE HIGHLY PREDICTABLE IN TERMS OF CASH FLOWS. THAT IS WHAT WE ARE LOOKING AT IN TERMS OF THE AI BUILDOUT. HAIDI: YOU TALKED ABOUT HOW AROUND 10% OF ATTENDEES OF THE CONFERENCE THIS YEAR ARE INVESTORS LOOKING FOR THAT AUSTRALIAN EXPOSURE.

1:14:54 IS THAT AMPLIFIED FROM HISTORICALLY HOW MUCH INTERNATIONAL AND FOREIGN INTEREST THERE HAS BEEN? CRISTINA: YEAH. DEFINITELY. I THINK THERE’S BEEN A LOT OF INTERNATIONAL INTEREST BOTH ON THE FIXED INCOME MARKETS AS WELL AS EQUITIES. THERE’S A LOT GOING FOR US AT THE MOMENT. WE ARE ONE OF THE TWO AAA SOVEREIGN JURISDICTIONS, STABLE A INSTITUTIONS. AND ALSO, WE WOULD ADD TO THAT WE ARE REALLY FOCUSED ON, WE HAVE DEEP AUSSIE CAPITAL MARKETS ACROSS BOTH OUR

1:15:25 GOVERNMENT BONDS AS WELL AS OUR PREMIER CORPORATE BONDS AS WELL AS HEDGE PRODUCTS. PROBABLY MOST IMPORTANTLY, WE HAVE 4.3 TRILLION FUNDS, WHICH REALLY ACTS AS A PERMANENT INVESTOR FOR THIS MARKET ON THE FIXED INCOME SIDE. WHEN IT COMES TO EQUITY, INVESTORS ARE LOOKING FOR A REAL ECONOMY HEDGE AGAINST AI, AND AI IS GOING TO DRIVE A LOT OF GROWTH, WHAT IS IT DOESN’T PLAY OUT EXACTLY AS WE PREDICT.

1:16:00 IT PROVIDES A LOT THAT HEDGE, WHILE STILL BEING ABLE TO PARTICIPATE IN SOME OF THE UPSIDE, GIVEN THAT WE’VE HAD A LOT OF STRONG NATURAL UPSIDE. HAIDI: TRUE AI STORY, PART OF SOME OF THE HIGHS AND ENTHUSIASM LEADING UP THAT NEVER HAPPENED. WE HE TAKE A LOOK AT THAT SCENARIO, WHAT DOES IT TELL YOU ABOUT THE INVESTOR BASE HERE? AND I GUESS, IS A BROADLY DETRIMENTAL TO THE OTHER

1:16:32 COMPANIES IN THE PIPELINES OR THE START UP IN THAT SPACE? HAIDI: WE THINK THAT THE AI STORY IN AUSTRALIA IS ONLY STARTING. THEY HAVE FACED SOME CHALLENGES. WE THINK IT IS CONTINUING TO BE A REALLY IMPORTANT GROWTH FOCUS FOR US. BUT WE DO THINK THAT THE LESSON OVER THE LAST FEW WEEKS IS THAT AUSTRALIAN INVESTORS ARE VERY SOPHISTICATED. THEY ASK THE HARD QUESTIONS. THEY WANT TO MAKE SURE THE PLANS ARE WELL THOUGHT THROUGH AND THAT THERE IS STRONG

1:17:03 VISIBILITY, I’VE ACTUALLY THE CORPORATE STORY. I THINK IT SHOWS THE IMPORTANCE OF REALLY HAVING A SOUND INVESTMENT STORY WHEN YOU ARE FACING AUSTRALIAN SECTORS. HAIDI: ARE THERE CONCERNS ABOUT THE AI DATA CENTER, THE NEOCLOUD INFRASTRUCTURE PLAY AS WELL? WE SEE SOME OF THE COMMUNITY BACKLASH, BROADER CONCERNS OVER BACKLASH ON AI. IS THAT SOMETHING THAT INVESTORS ARE QUITE SENSITIVE TO RIGHT NOW? CRISTINA: I THINK IT REALLY SHOWS THE SECTOR ARE JUST MATURING INTO

1:17:37 THIS NEXT PHASE, WHERE WE HAVE TO NOT JUST BE FOCUSED ON GROWTH AND BUILDOUT BUT ALSO BE FOCUSED ON COMMUNITY ENGAGEMENT, SIMILAR TO THE WAY THAT OUR NATURAL RESOURCES CHAMPIONS, WHEN THEY PLAN DEVELOPMENT, THEY ALSO ENGAGE WITH COMMUNITY EARLY ON IN THE PROCESS TO ENSURE SUCCESSFUL DEVELOPMENT. WE THINK OVERALL IT IS A HEALTHY SIGN OF A MATURING SECTOR, WHERE YOU HAVE TO THINK ABOUT MULTIPLE STAKEHOLDERS AND NOT JUST YOUR SHAREHOLDERS. HAIDI: AUSTRALIA IN PARTICULAR, AND THIS IS A GLOBAL STORY WHEN IT COMES TO THE CONCERN OVER HOW

1:18:08 FAR PRIVATE CREDIT HAS GROWN. ARE YOU SEEING CONCERNS IN THAT SPACE, TOO. AND, I GUESS, CONVERSELY, PERHAPS, THE SMALL ROUNDS OF DEFAULT, FOR EXAMPLE? CRISTINA: WE DON’T THINK THERE ARE IN A SYSTEMIC ISSUES WITHIN PRIVATE CREDIT IN AUSTRALIA, BUT WE DO THINK THE RECENT DEFAULTS HAVE BEEN A HEALTHY LESSON IN THE IMPORTANCE OF CREDIT UNDERWRITING DISCIPLINE. WE THINK THE HOUSING DEVELOPMENT SECTOR IS

1:18:39 DEFINITELY FACING A NUMBER OF CHALLENGES. I THINK PEOPLE REALIZE THAT, WHERE YOU LOOK AT THE DECLINE IN HOUSE PRICES, INCREASED COST AROUND CONSTRUCTIONS, OR RAW MATERIALS. WHEN YOU LAYER LEVERAGE ON TOP OF THAT, IT CAN ACTUALLY BE QUITE CHALLENGING TO MAKE THE ECONOMIC MODEL WORK. WE DO THINK THEY WILL NEED TO SPEND MORE TIME TESTING THE ECONOMIC MODELS OF THE BAR WAS THEY LEND IT TO TO MAKE SURE ANY SORT OF DOWNTURN, THEY ARE ABLE TO WITHSTAND THAT. THOUGH WE THINK OVERALL PRIVATE

1:19:10 CREDIT IS FOUND IN AUSTRALIA. BUT WE FROM TIME TO TIME HAVE THESE LESSONS OF IMPORTANCE OF CREDIT UNDERWRITING DISCIPLINE AND TESTING THAT MODEL. HAIDI: DO YOU SEE PRIVATE CREDIT DECLINE IN THE SUPERFUND? CRISTINA: WE THINK THE SUPERFUND DEFINITELY HAS INVESTED IN PRIVATE CREDIT AND CONTINUE TO DO SO, BOTH IN THEIR TEAMS AS WELL AS EXTERNAL MANAGERS. WE THINK CREDIT OVERALL IS IMPORTANT FOR THE FUNDS, AS THEY LOOK AT INVESTMENT OPTIONS AROUND THE ACCUMULATION,

1:19:45 PARTICULARLY AS YOU SEE MORE OF THE MEMBERS LIVING INTO THE RETIREMENT PHASE, WE NEED TO LOOK AT INVESTMENTS THAT ARE ABLE TO GENERATE ONGOING CASH RETURNS AND ALSO RETURN PRINCIPLES TO MEMBERS WITHIN A SHORT PERIOD OF TIME. HAIDI: WHAT ARE CLIENTS MOST WORRIED ABOUT HEADING INTO 2027? CRISTINA: OBVIOUSLY POLITICAL INSTABILITY REMAINS A BIG DOWNSIDE RISK. WHERE THE MIDDLE EAST CONFLICT GOES FROM HERE, AND WHAT DOES THAT HAVE IN TERMS OF IMPACT ON INFLATION IN THE SHORTER TERM, AS WELL AS LONGER-TERM, JUST

1:20:18 THE GLOBAL DEMAND FOR CAPITAL. SO ACROSS PROGRAMS, ACROSS THE AI COMPLEX, THAT’S REALLY BEEN A TOPIC FOR INVESTORS. HAIDI: CAN YOU PINPOINT WHAT TYPE OF SEGMENTS WE ARE LOOKING AT? CRISTINA: MAYBE A TOUCH ON NUMBERS AND VOLUMES AND SEGMENTS. OVER THE LAST FIVE YEARS, WE SEE IN THE INVESTOR BASE IN AUSTRALIA FIXED INCOME IN TERMS OF THE NUMBER OF ACCOUNTS ACTUALLY RISE.

1:20:52 WE PUT SPECIFICS ON ANALYSTS, NOW WE HAVE MORE THAN 430 OFFSHORE INVESTORS INVESTING IN AUSTRALIAN INCOME, FIXED INCOME. IN TERMS OF THE GOVERNMENT BONDS, OFF SHORING INVESTORS VERSUS DOMESTIC INVESTORS, SO A SIGNIFICANT PROPORTION. AND IN TERMS OF THOSE SEGMENTS AND THE COUNTRIES IN ASIA, IT’S REALLY ACROSS CENTRAL BANKS, COMMERCIAL BANKS, INSURANCE COMPANIES, SOVEREIGN WEALTH FUNDS ACROSS JAPAN, SOUTHEAST

1:21:25 ASIA, GREATER CHINA. AND IN EUROPE, I WAS CHATTING TO A LONDON-BASED RATES TRADER YESTERDAY, AND SHE WAS SAYING SHE SEEN A LOT OF GERMAN AND FRENCH ASSET MANAGERS END TREASURIES RECENTLY COMING INTO HEB’S AND SENMIS. HAIDI: AN INTERESTING TIME. REALLY GREAT TO HAVE YOU WITH US, CRISTINA CHANG, HEAD OF ANZ MARKETS AT CITI.

1:21:58 COMING UP, WE ARE WATCHING ELICE RECUPERATING. THE COMPANY’S CEO JOINING US TALKING ABOUT WIDER INVESTMENT APPETITE ISSUES FOR AI INFRASTRUCTURE. THIS IS BLOOMBERG. ♪ >> AND NOW WE ARE REACHING A POINT WHERE PEOPLE ARE BECOMING MORE DISCERNING. RIGHT?

1:22:29 LIKE, WE DO REALIZE THAT WE ARE SEEING EXTREMELY HIGH MARGINS IN DRAM, IN AREAS WHERE THERE ARE REAL SUPPLY CONSTRAINTS, BUT PEOPLE ARE STARTING TO LOOK TWO YEARS, THREE YEARS, HOW LONG IS THIS GOING TO LAST? SHERY: FOUNDER AND CEO KEN GRIFFIN, CITADEL, SPEAKING EXCLUSIVELY TO BLOOMBERG, THE LATEST EVIDENCE OF INVESTORS BECOMING MORE DISCERNING. ALSO INVESTING IN SO-CALLED NEOCLOUD SPACE. OVER THE PAST 30 DAYS, THIS

1:23:02 BASKET OF COMPANIES THAT SUPPLY AI COMPUTING POWER, JUST PUBLICLY TRADED COMPANIES, ONE DROPPED I FEEL PLANS EARLIER THIS MONTH. THOSE THAT HAVE GONE PUBLIC ARE FACING A VOLATILE MARKET. TAKE A LOOK AT SOUTH KOREAN DATA CENTER FIRM ELICE REBOUNDING TODAY IN SEOUL AFTER A 32% PLUNGE IN YESTERDAY’S TRADING DEBUT. JOINING US NOW EXCLUSIVELY FROM SOUL IS THE CEO, JAE WON KIM.

1:23:36 A VERY BUSY DAY FOR YOU, THE TRADING DEBUT WAS PRETTY BRUTAL. GIVEN YOUR REACTION, DO YOU THINK THE PRICE ACTION MAKES SENSE? WAS THE IPO MISPRICED? WHAT ARE YOU THINKING RIGHT NOW? JAE WON KIM: SO, OUR COMPANY IS OBVIOUSLY DOING A LOT OF CAPITAL EFFICIENCY. WE ARE CREATING A LOT OF VALUE, CREATING THE AI INFRASTRUCTURE VERY EFFICIENTLY. IN TERMS OF THE COMPANY MOMENTUM, I THINK WE HAVE WAY MORE GROWTH IN THE FUTURE.

1:24:08 BUT FOR THE FIRST DEBUT, I THINK IT WAS VERY VOLATILE, AND IT WAS VERY INTERESTING FOR ME TO SEE HOW IT IS VOLATILE SO MUCH OF THE FIRST DAY IN SECOND DAY. IN THE LONG TERM, OF THIS YEAR OR NEXT YEAR, WE ARE LOOKING AT VERY EXPLOSIVE GROWTH. I’M NOT WORRIED ABOUT THIS VOLATILE ISSUE IN THE FIRST WEEK. SHERY: HA YEAH. DOES VOLATILITY CHANGE AT ALL HOW YOU SPEND THAT CAPITAL YOU RAISED, HOW YOUR BUSINESS STRATEGY SHAPES UP FROM HERE? JAE WON KIM: YEAH.

1:24:44 SO, AS I MENTIONED, WE HAVE THE ADVANTAGE OF THE CAPITAL EFFICIENCY, BECAUSE WHEN WE CONSTRUCT THE AI INFRASTRUCTURE, WE CONSTRUCT IN A MODULAR WAY. SO OUR TRUE ADVANTAGE IS SPEED AND FLEXIBILITY. SO OUR MODULAR AI DATA CENTERS COME OUR CLOUD SYSTEM, CAN ALLOW US TO DEPLOY CAPITAL VERY EFFICIENTLY AND IN A SCALE, RIGHT? DYNAMICALLY. SO WE CAN GROW AGGRESSIVELY WITHOUT TAKING RISKS TOO MUCH. SO THAT IS OUR ADVANTAGE.

1:25:15 ANOTHER MAJOR GROWTH OF THAT WE ARE LOOKING AT IS SOVEREIGN AND COULD OBVIOUSLY A LOT OF COUNTRIES, ESPECIALLY SOUTH KOREA, WANTING TO HAVE SOVEREIGN AI IN THE GOVERNMENT. IN ORDER TO HAVE SOVEREIGN AI, YOU MUST HAVE SOVEREIGN AI CLOUD . ELICE OBVIOUSLY YOU CAN BUILD THE AI CLOUD INFRASTRUCTURE MOST EFFICIENTLY, AT THE SAME TIME THE FASTEST WAY WITH OUR MODULAR DATA CENTERS. SO FOR THESE KINDS OF TECHNICAL ADVANTAGES, WE ARE LOOKING AT

1:25:47 EXPONENTIAL GROWTH IN THIS COMING YEAR. SO I’M CONFIDENT HOW WE CAN EFFICIENTLY USE OUR CAPITAL RAISED. SHERY: SO QUANTIFY THAT GROWTH FOR US, BECAUSE WHEN IT COMES TO FAST PROFITS, YOU ARE ALREADY A PROFITABLE COMPANY. YOU ALREADY ANNOUNCED A 200% STORAGE AND REVENUE, SO WHAT ARE THE NUMBERS LOOKING LIKE FOR THE REST OF THE YEAR? JAE WON KIM: SO, OBVIOUSLY WE ARE LOOKING AT BASICALLY DOUBLING THE REVENUE COMPARED TO LAST YEAR.

1:26:18 THAT IS LIKE MINIMAL GUIDANCE WE GAVE OUT TO OUR INVESTORS. BUT OBVIOUSLY THERE ARE OTHER OPPORTUNITIES FOR US. THERE ARE SOME OF THE MORE INITIATIVES FROM THE GOVERNMENT, TRYING TO GIVE ALL OF THESE AI FUEL TO CITIZENS, SO THAT IS ANOTHER POSSIBLE GROWTH. THERE’S ALSO A HIGH DEMAND BECAUSE THERE IS LACK OF DATA CENTER WITH ELECTRICITY AND LIQUID COOLING AND NETWORK, OBVIOUSLY KOREA HAS A REALLY STRONG VALUE CHAIN, ELECTRICITY

1:26:51 NETWORKS, MANUFACTURING, SEMICONDUCTOR, TO CLOUD SOFTER, WE HAVE TOTAL VALUE CHANGE IN KOREA, TO BUILD IN THE FASTEST WAY. SO THOSE WILL COME IN NEXT YEAR. SO LOOKING AT THE NEXT YEAR, WE ARE ALSO TRYING TO COME UP WE ARE LOOKING AT DOUBLE GROWTH EVERY YEAR, SO THAT WILL ACTUALLY ACCELERATE WHAT THIS TYPE IN SOVEREIGN AI FEELS. SHERY: DESPITE YOUR OPTIMISM WHEN IT COMES TO THE SUPPLY CHAIN AND SOUTH KOREA, WE’VE SEEN THE PHYSICAL COMPLAINTS WHEN IT COMES TO BUILDING ARTIFICIAL

1:27:23 INTELLIGENCE INFRASTRUCTURE AROUND THE WORLD. WHAT DOES THAT MEAN FOR THE COST SIDE OF THINGS? ALREADY IN YOUR LATEST NUMBERS, YOU’VE SHOWN A LOT OF SPENDING, WHICH, OF COURSE, AT THE END OF THE DAY, AFFECTS THE PROFITABILITY. BASICALLY THE GOOD FREE CASH FLOW FOR A COMPANY. JAE WON KIM: SO, AS I MENTIONED TO COME UP WE HAVE THE GLOBAL LEADING CAPITAL EFFICIENCY PER MEGAWATT, AND ALSO A REALLY IMPORTANT PART OF THE SPEED.

1:27:55 IN KOREA, WE HAVE EXCESSIVE ELECTRICITY IN ALL REGIONS, AND ALSO WE HAVE THE ASSETS WAY TO CONSTRUCT A MODULAR DATA CENTERS, AND ALSO WE CAN HAVE OUR CLOUD SOFTWARE TO POWER UP THE AI MODELS. SO BASICALLY ALL OF THIS WILL COME UP INTO A CAPITAL EFFICIENCY, AND THAT IS VERY DIFFERENT FROM OTHER NEOCLOUDS. THEY ARE BUILDING THEIR CLOUD SYSTEM UNDER SIMILAR DATA CENTER INFRASTRUCTURE THAT WERE USED BY THE OTHER COMPANIES. WE ARE DOING A NEW TYPE OF DATA

1:28:27 CENTER, AND THESE DATA CENTERS ARE MORE EFFICIENT IN CONSTRUCTING AND BRINGING AND POWER UP – POWERING UP THE AI CLOUD. SHERY: IS THAT WHAT YOU WOULD SAY IS A MISUNDERSTANDING ABOUT ELICE? BECAUSE WE ARE SEEING THE SELLOFF IN OTHER NEOCLOUDS, RIGHT? WE ARE TALKING COREWEAVE, MORE THAN HALF FROM THE MAIN HE COULD COME UP WE ARE TALKING ABOUT FIRMUS. WHAT IS HAPPENING IN THE MARKET RIGHT NOW? IS IT A MISUNDERSTANDING ON THE INDUSTRY, OR IS THERE MORE TO

1:28:58 SAY ABOUT YOUR FROM A PARTICULAR AS COMPARED TO THE REST OF THEM? JAE WON KIM: WELL, TO MY UNDERSTANDING, THERE ARE VERY DIFFERENT WAYS OF POWERING UP AI CLOUD INFRASTRUCTURE. SO BASICALLY THE DIFFERENT COMPANIES WILL HAVE DIFFERENT TYPES OF POWERING UP THE CLOUD INFRASTRUCTURE. WE HAVE OUR OWN MODULAR DATA CENTERS, AND I THINK THE MANUFACTURING PROCESS IS VERY EFFICIENTLY BUILT IN KOREAN REGIONS. SO THAT’S WHY WE HAVE A DIFFERENT APPROACH POWERING UP

1:29:32 GPU’S, MPU’S, AND ALL OF THIS COMES UP INTO HOW WE OPERATE DIFFERENTLY FOR POWERING UP AI. SHERY: SO HOW ARE YOU TARGETING THE MARKET RIGHT, DOMESTIC VERSUS, YOU KNOW, OVERSEAS MARKET? JAE WON KIM: SO, WE STARTED OFF WITH THE SOVEREIGN AI. SO OBVIOUSLY THE DOMESTIC MARKET IS VERY IMPORTANT, AND OBVIOUSLY KOREA HAS A STRONG DOMESTIC MARKET AT THE MOMENT. BUT EVENTUALLY, WE ARE ALSO IN THE SUPPRESSION A LOT OF OVERSEAS COMPANIES, COMING INTO OUR CLOUD SYSTEM. THEY DON’T HAVE TO BE

1:30:04 PHYSICALLY LOCATED THERE, THEY CAN CONNECT AND THEY CAN USE OUR COMPUTE IN A COMPETITIVE PRICING. SO WE ARE IN DISCUSSION WITH ALL OF THE COMPANIES OVERSEAS AND DOMESTIC, SO IN THAT WAY, WE ARE GROWING VERY FAST. BUT SECONDLY, WE CAN ALSO EXPORT OUR MODULAR DATA CENTER. OUR SYSTEM, ALL OF THAT INSTALLED INSIDE A DATA CENTER, THESE DATA CENTERS, MODULAR DATA CENTERS IN KOREA, SO MANUFACTURED IN KOREA, SHIPPED WITH MODULAR DATA CENTER AND

1:30:37 CONSTRUCTING THE LOCAL LAW, AND OUR ADVANTAGE IS FLEXIBILITY. SO WE CAN CUSTOMIZE THE DESIGN TO FIT THE LOCAL LAW, AND THAT IS HOW WE DEALT WITH ALL THE KOREAN LAWS, AND THAT IS HOW WE CONSTRUCT THE AI DATA CENTER IN THE FASTEST WAY AND IN THE MOST EFFICIENT WAY. I THINK WE CAN BUILD WITH THESE TYPES OF DIFFERENT LOCAL LAWS TO BUILD UP DATA CENTERS, AND WE TRULY POWER UP OUR DATA CENTER IN AN EDGED DATA CENTER WAY. SO A LOT OF THESE, ELECTRICITY WITH OUR EDGED DATA CENTER

1:31:12 APPROACH ON A MODULAR DATA CENTER, I THINK EVEN GIVING SUPPORT TO OTHER COUNTRIES. SHERY: JAE WON KIM, THANKS FOR THE TIME, AND CONGRATULATIONS ON THE PUBLIC LISTING, CEO OF E LICE. WE WILL HAVE MORE ON THIS WEEK’S EPISODE OF “BLOOMBERG TECH ASIA,” TUNE IN AT THE TIMES ON YOUR SCREEN. YOU ARE WATCHING BLOOMBERG.

1:31:46 HAIDI: A STUDY OF GREATER CHINA SESSION, BUT WHEN IT COMES TO INNOVATIONS, THEY COULD BE OFFSET BY A WEAK RESULTS. LOOKING AT THE SELLOFF, INSIDER TRADING IN CHINESE MARKETS. THAT LAG SIGNIFICANTLY COME ALL OF THE PROGRESS, FROM BEIJING, WHAT IS DRIVING THIS DYNAMIC WE ARE SEEING, ANTHONY? ANTHONY: YEAH. WE ARE SEEING INVESTORS REALLY PICK SIDES BASED ON WHAT IS MAKING MONEY, RIGHT? AND CHINA’S MACRO STABILITY IS DELIVERING A POSSIBILITY TO THE

1:32:21 CHINESE SLE’S THAT IT IS STABLE. CHINESE BANKS HAVE A DECENT AMOUNT OF LEADERSHIP OVER THE REGULAR MARKET, YOU KNOW, DECENT EARNINGS GOVERNMENTS, CONTINUE TO PROTECT MARGINS, AND LENDING STARTS TO TURN HIM EVEN OF THE PROPERTY MARKET IS BAD IN THE LENDING DATA HAS STARTED TO TURN A LITTLE BIT. THAT HAS LED TO A HUGE OUTPERFORMANCE VERSUS TECH. CHINESE TECH CONTINUES TO IMPROVE, BUT IT IS NOT TURNING OFF THE MONEY THAT IS REQUIRED. YOU CONTINUE TO SEE THE INNOVATION FROM THE LIKES OF DEEPSEEK OR MINIMAX, NONE OF THE INNOVATIONS ARE PARTICULARLY PART OF FOOTBALL

1:32:59 – PARTICULARLY PROFITABLE, ESPECIALLY COMPARED TO THE AMERICAN ECOSYSTEM, WHICH HAS A MUCH EASIER ACCESS TO CAPITAL AND SHIFTS. YOU SEE THAT IN THE LIKES OF SPACEX AND SUPER MICRO. WE SEE THIS WIDENING GAP BETWEEN OLD CHINA AND NEW CHINA, DESPITE THE GOVERNMENT CONTINUING TO PRESS INVESTMENTS AND INCENTIVES INTO THE TECH SECTOR. HAIDI: SO, THAT POP UP GROWTH, SOME FEARS KIND OF SPANNING THROUGHOUT THE BROADER BATTERY SECTOR, RIGHT? WHAT IS THE BASE THROUGH FOR WIDER MARKET THEORY? ANTHONY:

1:33:31 YEAH. THE CATL NUMBERS INTERESTING, BECAUSE THAT WAS CHINA’S GROWTH SECTOR BEFORE AI, RIGHT? THIS IS A ROADMAP AFFECTED WHAT HAPPENS AFTER CHINA IS KIND OF DOMINATING INDUSTRY, BUT THE PROFITABILITY, THERE IS SO MUCH COMPETITION, DOMESTICALLY AND ABROAD, FOR THAT MARKET SHARE. AND WE SAW IT AS PART OF A LONG RUN BEING TRAINED NOW OF THE SPACE LOSING STEAM DESPITE DOMINATING WORLD MARKETS.

1:34:02 SO WE SEE THE EARNINGS ON THE NET INCOME SIDE AND ON THE REVENUE SIDE, DISAPPOINTING ANALYSTS. AND YOU ARE SEEING A LITTLE BIT OF BUSINESS COMING INTO THE KOREAN SESSION, THE EV’S AND AUTO NAMES ARE STRUGGLING IN A VERY STRONG MARKET. OVERALL WE CONTINUE TO WORRY ABOUT THE CHINESE EV SPACE, PUTTING PRESSURE ON EV’S ACROSS THE WORLD AS THEY LOOK FOR GROWTH AND REVENUE. SHERY: BLOOMBERG MARKETS REPORTER ANTHONY STEPHENS WITH A BREAKDOWN OF WHAT IS HAPPENING IN THE MARKETS RIGHT NOW, AS WE

1:34:34 ARE HEADING FOR THE CHINESE MARKET OPEN. WE ARE ALSO WATCHING THE CHINA BOND SPACE. REMEMBER WE HAD THAT HUGE RALLY WITH THE 10 YEAR YIELD FALLING TO THE LOWEST SINCE FEBRUARY OF LAST YEAR, AFTER THE PBOC SIGNALED THAT BENCHMARK FRAMEWORK SHIFT. WE ARE WATCHING SOVEREIGN YIELDS IN JAPAN AS WELL. JEGB’S REBOUNDING AFTER THAT 20 YEAR AUCTION YESTERDAY, AND TECH LEAVING THE SOFT GAINS. THIS IS BLOOMBERG.