ASML Boosts Outlook as Demand Outpaces Supply

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: ASML Boosts Outlook as Demand Outpaces Supply · Channel: Bloomberg Television · 48:33 · Watch on YouTube

Topics: AI infrastructure and hardware, Markets and economy

Summary

Bloomberg’s Daybreak: Europe covers ASML’s upgraded sales outlook as AI-related demand for chipmaking equipment continues to outpace its capacity. The program also examines rising oil prices amid attacks on Saudi and Gulf shipping infrastructure, and the implications for markets and inflation. Interviews explore Canada-India ties, Singapore’s role amid global fragmentation, and Cathy Wood’s views on AI investment, data centers and semiconductor risks. The show closes with a review of chip stocks, AI financing concerns and the day’s upcoming earnings and U.S. inflation data.

Key points

ASML raised the low end of its 2026 sales outlook, while warning that demand for its chipmaking machines will exceed supply in the coming years.
ASML is considering expanding capacity beyond 30% by 2028; some customers have placed orders for 2029 and 2030.
Nvidia CEO Jensen Huang announced an additional $2 billion investment in European AI companies, bringing the total cited in the report to $10 billion.
Cathy Wood said her firm favors less-cyclical semiconductor exposure and views the AI revolution as being closer to its beginning than its end.
Wood argued that data-center investment could bring economic growth and, over time, lower electricity prices in states that attract the projects.
Oil prices rose amid reports of attacks on Aramco’s headquarters and ships in the Strait of Hormuz, adding uncertainty to energy markets.
Canada’s foreign minister described efforts to deepen ties with India, including negotiations toward an economic partnership agreement.
Singapore’s deputy prime minister emphasized the country’s trusted, nimble role in global business and discussed energy diversification and regional power-grid plans.
The program also covered U.S. rate expectations, bank earnings, China’s strong September exports and trade surplus, and upcoming U.S. inflation data.

Chapters

Start	Chapter	Summary
00:00	Market headlines and ASML results	The program previews market developments and reports ASML’s sales outlook, capacity plans and strong order demand.
03:22	Asian markets and China trade	Asian shares rebound as markets digest dovish Fed comments, while China reports a sharp rise in exports and a large trade surplus.
05:33	Middle East tensions and oil	A Bloomberg editor discusses attacks on Saudi Arabia and shipping in the Strait of Hormuz, and their potential effect on oil prices.
09:22	ECB outlook and bank earnings	The program discusses the ECB’s inflation outlook and reports on trading results and regulatory news affecting major banks.
13:03	Fed rate expectations	A Bloomberg correspondent explains how upcoming inflation, jobs and geopolitical developments could shape the Fed’s rate decisions.
16:03	Canada and India seek closer ties	Canada’s foreign minister discusses renewed engagement with India, trade negotiations, immigration and broader strategic cooperation.
23:59	ASML demand and Nvidia’s Europe investment	The program details ASML’s upgraded sales forecast and Nvidia’s planned investment in European AI companies.
30:29	Cathy Wood on AI and investment risks	The ARK Invest CEO discusses semiconductor exposure, data centers, concerns about an AI bubble and AI safety.
37:55	Singapore’s strategy in a fragmented world	Singapore’s deputy prime minister discusses the country’s role as a trusted business hub, energy security and ASEAN cooperation.
45:54	Market wrap and upcoming events	The closing segment reviews chip-stock losses, AI infrastructure risks and the day’s upcoming earnings and inflation data.

Quotes

so far that strategy seems to be working. — 08:19

The challenge for ASML is actually meeting that demand at this point. — 27:14

We think we’re just at the beginning of this AI revolution. — 31:06

Singapore has always been known as a reliable partner. — 38:58

Being small is also an asset. — 45:22

Concepts and entities

ASML, NVIDIA, Jensen Huang, Cathy Wood, ARK Invest, TSMC, Samsung, Intel, Mistral, CoreWeave, John Williams, Christine Lagarde, data centers, Memória de alta largura de banda, ASEAN Power Grid

Full transcript (original language)

00:00 >> LIVE FROM BRUSSELS THIS IS DAYBREAK: EUROPE. ONE MORE RATE CUT JOHN WILLIAMS SAYS HE SEES NO NEED FOR FURTHER U.S. RATE HIKES NEXT YEAR, BUT OIL GAMES AFTER ARAMCO’S HEADQUARTERS ARE HIT BY A MISSILE ATTACK. NVIDIA ANNOUNCES PLANS TO INVEST $2 BILLION IN EUROPE AS IT LOOKS TO SPUR DEMAND FOR ITS PRODUCTS. PLUS, TRADE AND TARIFFS DOMINATE DISCUSSIONS AT THE

00:33 BLOOMBERG ECONOMY FORUM. WE WILL BRING YOU INTERVIEWS OF THE CANADIAN FOREIGN MINISTER IN SINGAPORE’S TRADE MINISTER THIS HOUR. LET’S CHECK WITH THINGS ARE MOVING ON MARKETS. WE DO HAVE ASIAN SHARES RISING, A PAUSE IN THE CHIP SELLOFF AFTER COMMENTS FROM JOHN WILLIAMS SLEIGH SHIFT IN MARKETS YESTERDAY AS WELL. EUROPEAN STOCK FUTURES POINTING FIRE, S&P 500 ALSO POINTING HIGHER AS WE HAVE THE S&P 500 CLOSE TO A RECORD HIGH. IN TERMS OF MOVEMENT THAT WE ARE TRACKING FOR YOU ACROSS OTHER ASSETS, OIL PRICES ARE MOVING HIGHER TODAY ON THE LATEST HEADLINES FROM THE MIDDLE EAST AS WELL AS RENT,

01:08 BACK UP OVER $106 PER BARREL IN TRADING. THE EURO BACKUP OVER 112 AS WELL. A TOUCH OF DOLLAR WEAKNESS, BUT ALSO THE ECB POLICYMAKER TALKING ABOUT THE NEED FOR FURTHER INTEREST RATE HIKES FROM THE ECB. AND THE 10-YEAR TREASURY YIELD JUST SLIGHTLY RALLYING AHEAD OF THE CPI PRINT LATER TODAY, OF COURSE REACTING TO JOHN WILLIAMS COMMENTS YESTERDAY, FIVE .2% FOR THE 10 YEAR TREASURY YIELDS. LET’S GET INTO THOSE BREAKING EARNINGS FROM ASML, A KEY PLAYER WHEN WE ARE THINKING ABOUT THE AI TRADE.

01:43 THIRD-QUARTER NET SALES, 11.6 $6 BILLION. SLIGHTLY BELOW ESTIMATES, BUT NOT FAR OFF THE 11.7 FIGURE THAT MARKETS HAD BEEN EXPECTING. ASML SAYING THAT SUPPLY IS CURRENTLY PLANNED TO FULLY MEET DEMAND. NET SALES NOW AT 44-40 $5 MILLION. THAT IS A SLIGHT UPGRADE OVER THE PREVIOUS UPDATE WHICH WAS A RANGE OF 43 TO 45. WE ARE LOOKING AT THE HIGHER END OF THAT RANGE AS WELL IN THE QUESTIONS OF COURSE

02:14 PARTICULARLY AROUND SUPPLIES OF SOME OF THOSE MACHINES GOING TO BE VERY MUCH AND FOCUS AS WE ARE THINKING ABOUT HOW SHARE PRICES GO INTO REACTING. ASML SAYING THEY ARE INVESTIGATING THE CAPACITY RAISE FOR 2028 BEYOND 30%. THIS IS BEEN A KEY FACTOR FOR MARKETS AS WELL AS ASML HAS STOPPED REPORTING SOME OF THOSE AT QUARTERLY SALES FIGURES, BUT THE CAPACITY BUILDING HAS BEEN A KEY METRIC FOR AI DEMAND AS WELL. CUSTOMERS HAVE PLACED ORDERS FOR 2029 AT 2030. THOSE ARE SOME OF THE BREAKING

02:45 LINES COMING FOR YOU FROM ASML. IN TERMS OF THE OTHER RISK EVENTS, TOM MACKENZIE IS THERE. WE WILL BE SPEAKING TO HIM A LITTLE LATER ON. EARNINGS FROM BANK OF AMERICA IN MORGAN STANLEY AND THE U.S. INFLATION PRINT. THAT IS ALL TO COME. LET’S GET YOU SET UP FOR THE DAY AHEAD.

03:22 LET’S SEE HOW ASIAN MARKETS ARE FARING TODAY WITH WINNIE HSU IN HONG KONG. WINNIE: GOOD MORNING. SEEING QUITE A NICE REBOUND IN ASIAN STOCKS TODAY AFTER THE TODAY SELLOFF, AS WE HEAR THESE DOVISH COMMENTS FROM THE FED OFFICIALS. YOU ARE SEEING THE TECH-HEAVY GAUGE TODAY, AND PERHAPS FOR JAPAN IT IS ALSO GETTING AN ADDITIONAL TAILWIND AS WE LEARN THAT THE BANK OF JAPAN IS NOW LEANING AGAINST A BACK RATE HIKE IN OCTOBER AND ADDING TO THAT, A NICE RELIEF IN THE BOND SPACE AS WELL. WE DID SEE PRETTY SOLID DEMAND

03:57 COMING THROUGH FOR THE BOND AUCTION EARLIER TODAY, ECHOING WHAT WE SAW FOR THE 10 YEAR AND 30 YEAR EARLIER. WE DID HAVE A SET OF FRESH ECONOMIC NUMBERS COMING THROUGH FROM CHINA, THE ONE THAT WE ARE HIGHLIGHTING REALLY IS AROUND THE STRONG EXPORT NUMBERS WE DID SEE, EXPORTS SURGING BY ABOUT 36% YEAR-OVER-YEAR FOR SEPTEMBER, AND THAT IS IN FACT THE FASTEST PACE SINCE FEBRUARY, SO THAT IS DUE TO THE STRONG AI DEMAND GLOBALLY, AND THAT IS REALLY SHOWING UP IN THE STRONG EXPORT FOR TECH AS WELL AS HARDWARE.

04:31 THAT REALLY HELPS TO WIDEN THE TRADE SURPLUS WHEN IT COMES TO CHINA AND THE REST OF THE WORLD. YOU CAN SEE THAT TRADE SURPLUS HERE AT ABOUT $130 BILLION FOR CHINA IN SEPTEMBER, AND THAT IS IN FACT AT THAT SECOND HIGHEST LEVEL WHEN IT COMES TO THEIR RECORD PERFORMANCE, AND MORE INTERESTINGLY, WHEN YOU LOOK BENEATH THE NUMBERS, YOU ARE LOOKING AT THE RECORD TRADE SURPLUS AND THAT IS COMING BEFORE THE TWO SIDES REALLY SIGNING SOME OF THESE DEALS WHEN IT COMES TO ADDRESSING THE

05:02 IMBALANCES AS WELL. BACK TO YOU, STEPHEN. STEPHEN: THANK YOU VERY MUCH, AND INDEED THOSE TRADE FIGURES PARTICULARLY ARE GOING TO BE IN FOCUS WHEN THINKING ABOUT THE DEFICIT WITH THE E.U. AS WELL, NEARLY $35 BILLION. SOMETHING THAT LEADERS WILL BE TALKING ABOUT AT THE SUMMIT HERE IN BRUSSELS GETTING UNDERWAY TOMORROW, A KEY ISSUE AFTER THE E.U. TRADE COMMISSIONER TRIP TO CHINA LAST BECAUSE WELL.

05:33 OIL PRICES ARE GAINING THIS MORNING AS TRADERS GRAPPLED WITH INCREASED UNCERTAINTY IN THE MIDDLE EAST. THE SAUDI GOVERNMENT SAYS ARAMCO’S EXECUTIVE HEADQUARTERS WERE YESTERDAY IN A MISSILE ATTACK BY YEMEN’S MILITANTS. THE HOUTHIS HAVE RAMPED UP STRIKES ON THE KINGDOM IN RECENT DAYS INCLUDING TARGETING AIRPORTS AROUND THE COUNTRY WHICH LEFT AT LEAST 18 PEOPLE DEAD. LET’S GET MORE NOW FROM BLOOMBERG’S EXECUTIVE EDITOR FOR THE MIDDLE EAST AND NORTH AFRICA. WHAT CAN YOU TELL US ABOUT THE LATEST ATTACKS?

06:06 >> IT IS SORT OF A CONTINUATION OF WHAT WE SEE OVER THE LAST SEVERAL DAYS, ALTHOUGH NOW IT SEEMS AT LEAST SOME OF THE ATTACKS ARE HEADING AGAIN TO SOME EXTENT TO RETURN TO IT WE SAW IN MARCH AND APRIL. THIS TIME IT IS COMING FROM YEMEN AND THE REBELS. IN TERMS OF THE DAMAGE ITSELF, THERE WAS A FIRE THAT WAS EXTINGUISHED, THERE WERE NO INJURIES. I THINK IT SPEAKS TO THE SPREADING CONFLICT AND THE REACH THAT THE HOUTHIS HAVE AND THE DIFFICULT POSITION THAT THE SAUDI’S ARE IN IN THAT THEY ARE

06:41 INCREDIBLY WELL-EQUIPPED, THEY HAVE INCREDIBLY HIGH DEFENSE SPENDING AND THEY HAVE THIS ABSOLUTELY VAST COUNTRY TO DEFEND AND SOMETHING LIKE THE 12 OR THE 13TH BIGGEST COUNTRY ON THE PLANET. NOT JUST THESE VERY BIG CITIES THEY HAVE, BUT ALSO OIL INFRASTRUCTURE AND SO ON AND SO FORTH. IT IS A DIFFICULT SITUATION AND AGAIN I THINK IT SPEAKS TO THE ESCALATING FRONT. I WOULDN’T CALL IT A NEW FRIEND, BUT IT IS DEFINITELY ESCALATING AND THAT SHOULD BE OF CONCERN. STEPHEN: WE’VE ALSO BEEN LOOKING AT THE

07:12 LATEST REPORTS OF ATTACKS ON SHIPS IN THE STRAIT OF HORMUZ. TALK US THROUGH WHAT WE KNOW ABOUT WHAT HAS HAPPENED AND WHAT THE IMPLICATIONS ARE FOR OUR ENERGY FOLKS. STUART: WE ARE BASING THIS PURELY ON THE REPORT THAT GOES INTO THE U.K. AT PUTS IT OUT INTO PUBLIC DOMAIN. THIS IS SHIP CAPTAIN OR SHIPOWNERS REPORTING ATTACKS ON THEIR VESSELS AND BASED ON THOSE NUMBERS, THERE HAS BEEN AN ESCALATION IN HOSTILITIES ON THE WATERS OF THE PERSIAN GULF. WE DON’T KNOW EXACTLY WHY, BUT WE CAN TAKE AN EDUCATED GUESS.

07:47 WE WOULD PRESUME THIS IS IRAN’S ATTEMPT TO TRY TO STIFLE THAT REBOUNDING TRADE GOING THROUGH HORMUZ. THAT WAS DEFINITELY INCREASING SUPPLY TO THE MARKET. NONETHELESS, THOSE HAVE GOT PRETTY CLOSE TO PREWAR LEVELS AND AGAIN, YOU CAN EXTEND FROM THAT THE IDEA THAT PERHAPS WHAT IRAN IS TRYING TO DO IS BUMP UP ENERGY PRICES BEFORE THE MIDTERM ELECTIONS AND PILE PRESSURE ON THE U.S. ADMINISTRATION TO MAKE CONCESSIONS IN TERMS OF THOSE SOMEWHAT STALLED NEGOTIATIONS. I THINK IF YOU LOOK AT THE

08:19 CRUDE OIL PRICE TODAY, WE WOULD BE FIRMLY OVER $100 PER BARREL, AND SO FAR THAT STRATEGY SEEMS TO BE WORKING. WHAT WILL BE INTERESTING TO SEE IS WHAT IS THE SHIP OWNER’S REACTION, CLEARLY THE ONES HAD A RISK TOLERANCE ANYWAY BUT THIS TAKES IT TO A WHOLE NEW LEVEL. STEPHEN: THANK YOU. U.S. PRESIDENT DONALD TRUMP IS FACING GROWING OPPOSITION WITHIN HIS OWN PARTY TO HIS DEAL WITH VLADIMIR PUTIN ON MOSCOW’S EXPORTS OF DIESEL. THAT AGREEMENT WITH THE RUSSIAN

08:51 LEADER REACHED JUST WEEKS AFTER HE SIGNED A LAW AUTHORIZING STIFF SANCTIONS ON COUNTRIES THAT BY RUSSIAN OIL. 12 SENATORS INCLUDING SIX REPUBLICANS HAVE WRITTEN TO TRUMP URGING HIM TO RESCIND THE DEAL AND INSTEAD ENFORCE THE NEW SANCTIONS LAW. STILL AHEAD, NVIDIA ANNOUNCES BILLIONS OF DOLLARS OF INVESTMENT IN EUROPE. WE ARE LIVE AT THE INTERNATIONAL AI SUMMIT IN DUBLIN LATER.

09:22 ♪ STEPHEN: WELCOME BACK TO BLOOMBERG “DAYBREAK: EUROPE.” THE EUROPEAN CENTRAL BANK

09:54 PRESIDENT SAYS THE EURO AREA INFLATION ELEVATED BY HIGH ENERGY PRICES IS YET TO FEED INTO THE BROADER ECONOMY. CHRISTINE LAGARDE ALSO INDICATED OFFICIALS ARE WATCHING FOR ANY SIGNS OF SECOND-ROUND EFFECTS. HE BELIEVES THE ECB WILL LIKELY NEED TO HIKE AGAIN. >> INFLATION IS TOO HIGH, SO WE HAVE HIKED. I’M NOT MAKING ANY THAT ANYMORE BECAUSE WITH SO MUCH UNCERTAINTY ON THE ENERGY FRONT, MAYBE ALSO AI WITH THE

10:26 STORIES ABOUT A POSSIBLE BUBBLE OR NOT. A YEAR FROM NOW WE COULD HAVE LOWER ENERGY PRICES. DON’T KNOW WHAT IS GOING TO HAPPEN IN TERMS OF AI, BUT OVER THE SHORT TERM, THE ECONOMY IS MORE RESILIENT THAN WE THOUGHT IT WOULD BE. STEPHEN: EQUITY TRADERS AT WALL STREET’S BIGGEST BANKS ARE ON TRACK TO ACHIEVE THE RARE FEAT OF FEEDING THEIR RIVALS AT FIXED INCOME.

10:57 THE EQUITY DIVISION BLEW PAST EXPECTATIONS IN THE THIRD QUARTER WHILE THERE FIXED INCOME COUNTERPARTS MISSED ESTIMATES. JP MORGAN POSTED A SURPRISE DROP IN FIXED INCOME TRADING REVENUE. THE FIRST SUCH DECLINE IN MORE THAN TWO YEARS. >> THE BOND VOLATILITY, THE MARKET, THE FEAR IS NOT GOING TO CHANGE WHAT WE DO. IT IS THE WEATHER. THE PIPELINE IS FINE. IT CAN OPEN AND CLOSE PRETTY

11:29 QUICK. YOU SEEN IN THE UNITED STATES THE DELAYS PROBABLY. WE DON’T REALLY KNOW. STEPHEN: BANK OF AMERICA HAS BEEN FINED MORE THAN $1.2 BILLION FOR MONEY LAUNDERING AND SANCTIONS VIOLATIONS. U.S. REGULATORS SEE THE BANK EFFECTIVELY OUTSOURCED A KEY PART OF ITS CLIENTS EFFORTS TO TRY TO PROTECT REVENUE. BANK OF AMERICA SAYS IT HAS

12:00 WORKED WITH REGULATORS ON COMPLIANCE WITH THE FINES EXPECTED TO CUT INTERNET INCOME BY ABOUT $.17 A SHARE. BANK OF AMERICA CEO BRIAN MOYNIHAN WILL BE LIVE ON BLOOMBERG TELEVISION AT 7:00 P.M. LONDON TIME, 8:00 P.M. HERE IN BRUSSELS. SWISS LAWMAKERS HAVE BACKED A NEW SPECIAL TAX FOR SYSTEMICALLY IMPORTANT BANKS IN THE LATEST BLOW TO UBS. MEMBERS OF THE THE COMMITTEE VOTED IN PRINCIPLE FOR A LUMP SUM FEE FOR MAJOR BANKS WITH SUBSTANTIAL FOREIGN OPERATIONS GRANTING ACCESS TO PUBLIC

12:31 LIQUIDITY GUARANTEES AFTER TWO BIG TO FAIL REGULATIONS. UBS WOULD BE THE ONLY BANK AFFECTED. WORKERS AT THE WORLD’S BIGGEST COPPER MINE ARE SET TO GO ON STRIKE AFTER WAGE TALKS BROKE DOWN. ROUGHLY A QUARTER OF EMPLOYEES AT THE HP’S ESCONDIDO MINE IN CHILE PLANNED TO WALK OUT FROM WEDNESDAY MORNING LOCAL TIME, SEEKING A GREATER SHARE OF PROFITS WITH COPPER PRICES NEAR

13:03 RECORD HIGHS. IN THE NEW YORK FED PRESIDENT JOHN WILLIAMS TOLD BLOOMBERG HE SEES ONE MORE RATE HIKE THIS YEAR AS APPROPRIATE, BUT DOESN’T HAVE ANY REASON TO BELIEVE THAT MORE WILL BE NEEDED. HE ALSO SAID HE SEES INFLATION APPROACHING THE FED 2% TARGET NEXT YEAR. WITH BRING IN MARK CRANE FIELD FOR MORE ON THIS. VERY INTERESTING TO SEE WHAT JOHN WILLIAMS HAS TO SAY ABOUT THE RIGHT PATH AHEAD. WE’VE ALSO GOT CPI TO LOOK FORWARD TO LATER TODAY.

13:39 >> IT NEEDS TO BE A REALLY SHOCKING NUMBER FROM THE INFLATION DATA LATER TODAY TO REALLY CHANGE THEIR MINDS ABOUT THE OCTOBER MEETING. IT SOUNDS AS THOUGH MOST OF THEM HAVE MADE THEIR DECISION ALREADY THAT THEY ARE GOING TO BE ON HOLD FOR THAT MEETING. SO ONLY IF WE GET A NUMBER MUCH HIGHER THAN EXPECTATIONS WITH THEY WANT TO RECONSIDER THAT. THE BIGGER QUESTION FOR THE MARKETS REALLY IS HOW MANY PEOPLE ARE LEANING TOWARD THAT DECEMBER INTEREST RATE HIKE, WHICH IS PRETTY MUCH PRAISED INTO THE MARKETS OF THE MOMENT?

14:11 THAT WON’T BE A BIG SURPRISE, OTHER SPEAKERS HAVE BEEN THAT WAY, BUT IT IS BY NO MEANS A FOREGONE CONCLUSION. BUT YOU WILL HAVE QUITE A BIT MORE INFLATION DATA BEFORE WE GET TO THAT, A COUPLE MORE REPORTS UNDER THE TABLE BY THEN. WE’VE ALSO GOT THE MIDTERM ELECTIONS, AND MORE JOBS DATA WHICH HAS BEEN A BIT MORE MIXED THAN THE INFLATION. SO THERE IS A LOT TO BE PUT UP BEFORE WE GET THERE. AS FAR AS 2027 IS CONCERNED, YOU CAN IMAGINE MOST OF THE FED PEOPLE WOULD WANT TO KEEP THEIR OPTIONS OPEN AS MUCH AS POSSIBLE. IT’S A VERY FLUID SITUATION IN

14:43 TERMS OF GLOBAL ENERGY, PRICES ARE RELATIVELY HIGH AT THE MOMENT. THAT’S BECAUSE DIRECTLY, THE SITUATION BETWEEN THE U.S. AND IRAN. BUT IF WE WERE TO GET A SURPRISE DEAL, A BACKING OFF OF HOSTILITIES IN THE MIDDLE EAST, OIL PRICES COULD FALL QUITE QUICKLY. WE SAW THAT EARLIER A COUPLE OF MONTHS AGO. WE SAW THAT AS THINGS COOLED DOWN, PRICES GO FORWARD VERY FAST, AND THAT AFFECTS THE INFLATION OUTLOOK AS WELL. IT WOULD BE SURPRISING IF OTHER FED MEMBERS LIKE MR. WILLIAMS PROBABLY WANT TO KEEP THEIR OPTIONS OPEN AS MUCH AS POSSIBLE.

15:16 SEE A LOT MORE DATA AND LATER IN THE YEAR THEY WILL GIVE YOU A CLEARER PICTURE OF WHERE THEY SEE 2027 GOING. STEPHEN: MARK CRANE FIELD, THANK YOU VERY MUCH. COMING UP NEXT, WE ARE GOING TO BE GOING BACK LIFE TO NEW DELHI TO BLOOMBERG’S NEW ECONOMY FORUM. FRANCINE LACQUA CURRENTLY SPEAKING TO A PANEL ABOUT RESILIENCE AMID TURBULENCE, INCLUDING QATAR’S COMMERCE INDUSTRY MINISTER. WE’LL BRING YOU A KEY INTERVIEW NEXT. THIS IS BLOOMBERG.

16:03 STEPHEN: WELCOME BACK TO BLOOMBERG “DAYBREAK: EUROPE.” INDIA AND CANADA LEADERS ARE EMBARKING ON EFFORTS TO DEEPEN BILATERAL TIES AS CANADA TRIES TO REDUCE ITS RELIANCE ON THE U.S.. THE PRIME MINISTER’S SPOKE OVER THE PHONE YESTERDAY, PLEDGING TO BUILD ON POSITIVE MOMENTUM. IT’S TAKE IT TO NEW DELHI NEXT. >> WE HAVE THE CANADIAN FOREIGN MINISTER JOINING US HERE.

16:36 WE JUST SPOKE OF COURSE WITH THE TRADE MINISTER FROM CANADA, CERTAINLY THERE IS SO MUCH CONVERSATION ABOUT THE INDIA AND CANADA RELATIONSHIP RIGHT NOW. HOW ARE CONVERSATIONS WITH YOUR COUNTERPARTS? >> IT IS SUCH AN EXCITING TIME. I WAS HERE ALMOST EXACTLY TO THE DAY ONE YEAR AGO TO REVIVE THE RELATIONSHIP BETWEEN CANADA AND INDIA, AND TO ENSURE THAT WE HAVE A ROADMAP TO BASE THE GROWTH OF THE RELATIONSHIP ON BEGINNING WITH A DIALOGUE ON

17:09 NATIONAL SECURITY, MAKING SURE THAT THERE IS A RESPECT FOR THE RULE OF LAW, AND THEN MOVING TO OTHER STRATEGIC AREAS. ENERGY, CRITICAL MINERALS, INFORMATION TECHNOLOGY AND AI. TRADE AND INVESTMENT AND OF COURSE, WE ARE LOOKING TO CONCLUDE THE ECONOMIC PARTNERSHIP AGREEMENT WITH INDIA BEFORE THE END OF THE YEAR. >> HOLDING SUGGEST MAYBE A MAJORITY OF CANADIANS HAVE EXPRESSED UNFAVORABLE VIEWS WHEN IT COMES TO INDIA OVER THE PAST YEARS. WHAT HAVE YOU DONE IN TERMS OF CHANGING MISPERCEPTIONS?

17:42 >> TIES BETWEEN OUR COUNTRIES ARE STRONG. THIS IS TRUE IN AND OUTSIDE OF THE EDUCATIONAL FIELDS. WE HAVE A NUMBER OF UNIVERSITIES THAT ARE PARTNERING WITH INDIAN UNIVERSITIES. AND SO GROWING THOSE RELATIONSHIPS IS VERY IMPORTANT IN CULTURE, MUSIC, THE ARTS AS WELL. THERE ARE STRONG RELATIONSHIPS. THIS IS A COMPLEX RELATIONSHIP WITH MANY LAYERS. AND THEN THE STRATEGIC AREAS,

18:16 CRITICAL MINERALS AND ENERGY. WE SIGNED AN AGREEMENT, $6.2 BILLION BETWEEN AMOCO AND INDIA BACK IN FEBRUARY. THIS IS THE TYPE OF WORK WE ARE DOING AT VARIOUS LEVELS TO ENSURE AN INTEGRATED AND GROWING RELATIONSHIP. >> CUST IMMIGRATION HAS IT INDIA QUITE HARD ESPECIALLY WHEN IT COMES TO IMMIGRANTS. I THINK OF ANOTHER LARGEST IMMIGRANT COMMUNITIES IN CANADA IS FROM INDIA. SHOULD WE EXPECT THAT TO CHANGE ANYTIME SOON?

18:53 >> DECISIONS ABOUT IMMIGRATION WERE VERY MUCH IN RESPONSE TO SOCIAL SUPPORTS THAT WERE AVAILABLE FOR POPULATIONS ACROSS THE COUNTRY. THE CANADIANS AND IMMIGRANT POPULATIONS. AND HOUSING AND SOCIAL SERVICES. AND SO IT IS VERY MUCH A RECALIBRATION TO ENSURE THAT WHEN PEOPLE ARE COMING TO CANADA THERE ARE SUPPORTS AVAILABLE, AND SO THAT IS THE WORK THAT THE IMMIGRATION MINISTER IS UNDERTAKING. BUT OF COURSE, IF YOU STEP BACK

19:27 AND YOU LOOK AT CANADA AS A WHOLE, IMMIGRATION HAS BEEN FUNDAMENTALLY IMPORTANT TO OUR ECONOMIC GROWTH, OUR DIVERSITY AND OUR ABILITY TO THRIVE AS A COUNTRY. >> SO WHAT CAN WE EXPECT IN TERMS OF CHANGES IN LABOR OR EDUCATION MOBILITY BETWEEN THE TWO? ANITA: SO THIS IS THE WORK THAT THE TRADE TEAMS BETWEEN CANADA AND INDIA ARE DOING RIGHT NOW. THE INDIAN DELEGATION, TRADE NEGOTIATING TEAM WAS IN CANADA JUST LAST WEEK. OF COURSE OUR MINISTER OF INTERNATIONAL TRADE IS HERE

20:00 THIS WEEK WITH 150 PERSON STRONG DELEGATION. THIS WORK BETWEEN THE TRADE NEGOTIATING TEAMS IS CONTINUING AND LET’S JUST SAY PRIME MINISTER MODI AND PRIME MINISTER CARNEY SPOKE YESTERDAY ABOUT THE PROMISE OF THE TRADE AND INVESTMENT RELATIONSHIP, BUT ALSO THE NEED TO KEEP WORKING ON THESE OTHER STRATEGIC AREAS BECAUSE THE COMPLEMENTARITY IS BETWEEN INDIA AND CANADA ARE SO GREAT AND WE ARE LOOKING FORWARD TO THAT BEFORE THE END OF THE YEAR.

20:36 >> THINGS HAVE BEEN PRETTY ROCKY SINCE PRIME MINISTER CARNEY TOOK THE ROLE. HAVE WE EASED TENSIONS IN ANYWAY SINCE HE TOOK OFFICE? >> MOST DEFINITELY. I WAS HERE LAST YEAR SETTING OUT THE ROADMAP FOR THE RELATIONSHIP. PRIME MINISTER CARNEY ACTUALLY INVITED PRIME MINISTER MODI TO THE G7 AND THE WORK THAT WE ARE DOING WITH ENSURE A LONG-TERM

21:07 RELATIONSHIP GOING FORWARD. >> JUST GOT OFF THE STAGE HERE TALKING ABOUT THE MIDDLE PART. OBVIOUSLY WE STILL REMEMBER THAT SPEECH TALKING AT HOW THE U.S. IS STEPPING BACK FROM THIS GLOBAL WORLD ORDER. HOW REALISTIC IS IT TO REALLY STEP UP RIGHT NOW? >> IT IS HAPPENING AS WE SPEAK. WE AS MIDDLE POWERS CAN WATCH

21:41 AND WORLD UNFOLD WHERE GLOBAL HEGEMON’S ARE BECOMING MORE PROTECTIONIST OR WE CAN STEP UP AND LEAD TOGETHER. AND WHETHER IT IS ON DEFENSE AND SECURITY, ARCTIC SECURITY, OR IN ECONOMIC RELATIONSHIPS, YOU ARE CONTINUING TO SEE MIDDLE POWERS WARP TOGETHER. CANADA HAS SIGNED 50 TRADE AGREEMENTS OVER THE PAST YEAR AND THAT IS SERVICING MILLIONS OF PEOPLE ALL OVER THE WORLD. >> THIS IS ALSO COMING AT A TIME IN CANADA IS MAYBE FORGING

22:12 MORE DEEP RELATIONSHIPS WITH CHINA. WE HAVE THE APEC SUMMIT, IS PRIME MINISTER CARNEY GOING TO BE THERE? >> WE ARE PLANNING A FULL DELEGATION. THAT IS THE WORK WE DO AS MULTILATERAL, BUT ALSO THE WORK THAT WE WANT TO CONTINUE TO DO IN THE PACIFIC AS A PACIFIC COUNTRY OURSELVES. WE SEE THE GROWTH POTENTIAL IN THESE RELATIONSHIPS IN THE END

22:47 OF PACIFIC. WE ARE SEEKING FTA HOPING TO BE CONCLUDED BEFORE THE END OF 2026. WE ARE HOSTING IN 2028. SO ATTENDING IN CAMBODIA IS EXTREMELY IMPORTANT AND OF COURSE, AIPAC IS ALWAYS A MUST GO. >> GREAT TO HAVE YOU. JOINING US HERE ON DATE TWO OF BLOOMBERG ECONOMY FORUM. BACK TO YOU. STEPHEN: THANK YOU VERY MUCH. WE WILL BE RETURNING TO NEW

23:18 DELHI LATER IN THE PROGRAM WHERE WE WILL BE SPEAKING WITH SINGAPORE’S DEPUTY PRIME MINISTER. COMING UP, ASML RAISES ITS SALES OUTLOOK AS THE AI BOOM DRIVES DEMAND. WE WILL HAVE THE DETAILS NEXT. THIS IS BLOOMBERG.

23:59 STEPHEN: LIVE FROM BRUSSELS THIS IS “BLOOMBERG DAYBREAK: EUROPE.” I’M STEPHEN CARROLL WITH YOUR TOP STORIES. ONE MORE, AND DONE. THE FED’S JOHN WILLIAMS SAYS HE SEES NO NEED FOR FURTHER U.S. RATE HIKES NEXT YEAR. WHILE OIL GAINS AFTER RAM CO-’S HEADQUARTERS ARE HIT BY A HOUTHI MISSILE ATTACK. ASML SAYS SUPPLY WON’T MEET DEMAND FOR ITS CHAMPIONSHIP MAKING MACHINES OUT TO 2028 AS EUROPE’S MOST VALUABLE COMPANY RAISES ITS OUTLOOK. PLUS TRADE AND TARIFFS DOMINATE DISCUSSIONS AT THE BLOOMBERG

24:31 NEW ECONOMY FORUM. WE’LL BRING YOU OUR INTERVIEW WITH SINGAPORE’S TRADE MINISTER. LET’S CHECK IN ON WHERE THINGS ARE MOVING ON MARKETS FOR YOU THIS MORNING. A PAUSE IN THE CHIP SELLOFF HELPING ASIAN SHARES HIGHER. THE MSCI UP BY .4%. SUSPEND NEAR A RECORD HIGH AS WE WATCH CLOSELY TO SEE HOW TRADING SESSION PANS OUT TODAY WITH PLENTY MORE EARNINGS IN FOCUS FOR MARKETS. IN TERMS OF THE OTHER ASSETS WE’RE WATCHING FOR YOU, OIL

25:02 PRICES ARE A LITTLE HIGHER ON THE DAY AS WELL. BRENT CRUDE BACK UP OVER $106 A BARREL THOSE LATEST HEADLINES OUT OF THE MIDDLE EAST COMMENTS. THAT WE HAVE IN TERMS OF THE JOHN WILLIAMS AND THE RATE HIKES HELPING TO WEAKEN THE DOLLAR A LITTLE BIT. THE EURO TRADING OVER $112 AGAIN TODAY. BUT NOT THAT FAR OFF THE 17-MONTH LOW THAT IT HAD REACHED. THE 10-YEAR TREASURY YIELD AHEAD OF THE CPI PRINT A SLIGHT RALLY HOVERING AROUND 5.2%. ASML HAS UPGRADED THE LOW END OF ITS 2026 SALES FORECAST AS SOARING AI SPENDING FUELS NAND

25:35 FOR THE DUTCH COMPANY’S CHIP MAKING MACHINES. FOR MORE, LET’S GO TO DUBLIN AND SPEAK TO BLOOMBERG ANCHOR TOM MACKENZIE WHO’S THERE FOR THE INTERNATIONAL AI SUMMIT. TOM, ASML HAS INDICATED IT WON’T FULLY MEET DEMAND IN THE NEXT TWO YEARS. HOW SIGNIFICANT IS THIS? TOM: WELL, IT IS SIGNIFICANT. AND IT REMINDS US THAT DEMAND FROM ITS CUSTOMERS. TSMC, SAMSUNG, INTEL, THE FACTORIES THAT ACTUALLY PRODUCE AND CHURN OUT THE CHIPS THAT ARE USED IN THIS AI REVOLUTION, ALSO CHIPS THAT GO INTO

26:06 EVERYTHING FROM FRIDGES TO CARS THAT DEMAND FROM THE END CUSTOMER, FROM THOSE FOUNDRIES REMAINS VERY, VERY STRONG INDEED. THIS IS A THIRD CONSECUTIVE QUARTER, STEPHEN, WHERE THEY HAVE RAISED ASML THAT FORECAST. THIS TIME ON THE LOW END. RANGE SO – AT THE LOW END FROM $4 BILLION, TOP END $45 BILLION OF ANNUAL SALES IS NOW WHAT IS BEING PROJECTED BY THIS COMPANY. THIS IS THE COMPANY THAT HAS A LEAD TIME OF ABOUT ONE YEAR. SO IT’S A REALLY GOOD INDICATOR OF THAT FORWARD DEMAND AT A

26:40 TIME OF COURSE WHEN OVERNIGHT YOU HAD CONCERNS REFLECTED IN THE MOVEMENTS AROUND APPLIED MATERIALS, IN THE U.S., WHICH DIDN’T GIVE DETAILS, PICTURE AND DETAILS OF THE NUMBERS IN TERMS OF THE FORECAST FOR THAT COMPANY AT A TIME WHEN WE HAD THE CEO OF BROADCOM TALKING ABOUT SOME INVESTORS IN THE AI SPACE ACTING LIKE THEY WERE IN A CASINO. ASML COMING OUT VALIDATING THAT THE DEMAND IS STILL THERE AND IF THERE ARE ANY QUESTION MARKS, IF THERE ARE ANY FLIES IN THE OINTMENT, IT’S THIS. THAT THIS IS A COMPANY THAT IS UNABLE TO FULFILL THAT DEMAND. THAT’S WHAT CEO IS SAYING.

27:14 2027-28, THEY WILL STRUGGLE TO FILL IN A DEMAND. THIS IS A COMPANY THAT IN THE NETHERLANDS IS BUILDING OUT ADDITIONAL CAPACITY. LOOKING TO INCREASE CAPACITY AGAIN BY ABOUT 30%. SO THE DEMAND IS INCREDIBLY STRONG. THE CHALLENGE FOR ASML IS ACTUALLY MEETING THAT DEMAND AT THIS POINT. STEPHEN: WELL, ELSE WHERE IN THE SECTOR, TOM, NVIDIA CEO HAS ANNOUNCED PLANS TO INVEST $2 BILLION IN EUROPEAN DEALS. LET’S HEAR FROM JENSEN HUANG SPEAKING IN PARIS. >> THIS IS THE BEGINNING, THE BEGINNING OF AI IN EUROPE.

27:48 IN THE LAST YEAR ALONE, WE HAVE INVESTED $8 BILLION IN EUROPEAN STARTUPS. AND IN THE NEXT WEEK, I’M GOING TO ANNOUNCE ANOTHER $2 BILLION. AND SO WE’RE – WE’VE INVESTED TREMENDOUSLY IN JUST ABOUT EVERY SINGLE LAYER OF THE AI INFRASTRUCTURE HERE IN EUROPE. AND SO THE NEXT LAYER ABOVE THAT IS INVESTMENTS. THESE ARE GOING TO BE THE SUPERSTAR COMPANIES OF THE NEXT GENERATION. STEPHEN: TOM, JENSEN HUANG, A BIG EVENT OF MONEY AT THE HEADLINE LEVEL

28:19 BUT WHAT SORT OF IMPACT WILL IT HAVE ON EUROPE’S AI BUILDOUT? TOM: IT WILL HAVE SOME IMPACT. I MEAN, AS HE SAID, HE HAS BEEN INVESTING IN FOUNDERS AND IN STARTUPS. ACROSS EUROPE FOR A COUPLE OF YEARS. SO BRINGS THE TOTAL TO $10 BILLION. AND AN ADDITIONAL $2 BILLION. IT’S NOT JUST THE INVESTMENT, THOUGH. IT’S WHEN YOU GET THAT INVESTMENT FROM JENSEN HUANG AND NVIDIA, THE PARTNERSHIP THAT YOU HAVE AS A STARTUP IN EUROPE WITH THE NVIDIA INFRASTRUCTURE. IT’S WORKING WITH THOSE TEAMS. I’VE TALKED TO FOUNDERS IN EUROPE ABOUT HOW WELL THEY CAN WORK WITH THE TEAMS ACROSS THE

28:51 NVIDIA SPACE. AND THE OPPORTUNITY THAT THAT PROVIDES AS WELL. AND OF COURSE A LOT OF THESE COMPANIES ARE GOING TO NEED THE COMPUTE FROM NVIDIA AS WELL. THE GPU’S TO BUILD THE PRODUCTS AND SERVICES. THIS IS THE FOUNDER OF COURSE OF THE COMPANY THAT IS RIGHT NOW DESCRIBED AS THE CENTRAL BANK OF AI. AND HE IS THE ONE COMING OUT WITH THE MOST POSITIVE MESSAGE IN TERMS OF THE POTENTIAL FOR AI. HE’S ON THIS EUROPEAN TOUR. HE’S GOING TO BE IN LONDON. HE’S GOING TO BE IN BERLIN. AND NOW HE’S MAKING HIS – AN ANNOUNCEMENT AND INVESTMENT COMMITMENTS IN FRANCE. YOU WOULD EXPECT MORE TO COME.

29:24 HE’S BACKED MISTRAL WHICH IS INTERESTING AND ONE OF THE BEST-FUNDED FOUNDED COMPANIES IN EUROPE. OF COURSE, BASED IN FRANCE, THAT’S BUILDING NOT JUST FRONTIER MODELS ON OPEN WEIGHT, OPEN WEIGHT AND ALSO BUILDING THE FULL STACKS AND BUILDING THE INFRASTRUCTURE AND BUILDING THE DATA CENTERS FILLED WITH THOSE NVIDIA GPU’S. AND IT’S NOT JUST MISTRAL. IT’S COMPANIES LIKE PIGMENT THAT DO SOFTWARE AND ENTERPRISE SOFTWARE IN TERMS OF PREDICTION FORECASTING, SOFTWARE. HE’S BACKING THEM AS WELL WITH ADDITIONAL INVESTMENT. SO AS HE SAID JENSEN SAID, THIS IS ACROSS THE STACK. AND IT’S ABOUT A CEO WHO’S

29:55 PLACING HIS BETS AS WELL. NOT JUST HIS BETS IN EUROPE BUT HIS BETS ACROSS THE STACK FROM SOFTWARE TO HARDWARE TO ROBOTICS AND IT’S VALIDATION OF THE WORK BEING DONE BY FOUNDERS HERE IN EUROPE AND THAT WILL BE WELCOMED. STEPHEN: OK. TOM MACKENZIE AT THE AI SUMMIT IN DUBLIN. THANK YOU VERY MUCH FOR JOINING US. AND WE HAVE FULL COVERAGE OF THAT EVENT THROUGHOUT THE DAY HERE ON BLOOMBERG INCLUDING EXCLUSIVE INTERVIEWS WITH EXECUTIVES, ANTHROPIC, AND OPENAI. WELL, AMID ALL OF THAT RUSH OF OPTIMISM AROUND AI, OF COURSE, HAS BEEN PLENTY OF QUESTIONS

30:29 BEING ASKED ABOUT THE FUNDING AROUND SOME OF THESE COMPANIES AS WELL. LET’S GET A BROADER VIEW ON THE TECH INVESTMENT LANDSCAPE. WE CAN SPEAK TO ARC INVEST CEO CATHY WOOD WHO’S IN HONG KONG. SHE TOLD INVESTORS THAT SHE IS AVOIDING TRADITIONAL MEMORY CHIP PLAYERS THE SECTOR IS PRONE TO A VICIOUS BOOM AND BUST CYCLE. GREAT TO TALK TO YOU ON “BLOOMBERG DAYBREAK: EUROPE.” REALLY INTERESTING TO HEAR YOUR COMMENTS ABOUT MEMORY CHIP PLAYERS AND A LOT OF PEOPLE HAVE DONE VERY WELL INVESTING IN THEM. TALK US THROUGH YOUR REASONING AS TO WHY YOU’RE AVOIDING THEM. >> YES. WELL, I THINK THE MEMORY CHIP

31:06 CYCLE IS THE MOST – THE MOST VOLATILE. SO WHAT I’D LIKE TO DO IS JUST SET THE STAGE A BIT. WE THINK WE’RE IN A VERY POWERFUL CYCLE, A TECHNOLOGY REVOLUTION THAT IS GOING TO CONTINUE TO BENEFIT THE MEMORY STOCKS, ESPECIALLY HIGH BANDWIDTH MEMORY. AND THE REST OF THE SPACE IS A BIT COMMODITIZED AND NOW CHINA IS ENTERING THE SCENE IN A PRETTY AGGRESSIVE WAY. SO I DON’T WANT TO BE MISTAKEN. WE THINK WE’RE JUST AT THE BEGINNING OF THIS AI REVOLUTION. CERTAINLY CLOSER TO THE BEGINNING. AND WE DON’T SEE THE END FOR A

31:39 VERY LONG TIME. WE JUST IN TERMS OF OUR SEMICONDUCTOR EXPOSURE TEND TO BE AT THE LESS CYCLICAL END OF THE SPECTRUM. STEPHEN: THANKS FOR CLARIFYING THAT. ON A IDEA ASML JUST REPORTING IN EUROPE, ONE OF THOSE FEW COMPANIES THAT WE HAVE IN EUROPE THAT’S DIRECTLY LINKED, THE AI TRADE AS WELL. CORRECT ME IF I’M WRONG, BUT WHEN I – YOU DON’T HAVE AN INVESTMENT IN ASML. I’M CURIOUS AS TO WHY GIVEN ITS IMPORTANCE TO THE AI SUPPLY CHAIN. >> YES. IT’S CRITICALLY IMPORTANT TO

32:11 THE AI SUPPLY CHAIN. WE’VE CHOSEN TO EXPRESS OUR SEMICONDUCTOR EXPOSURE THROUGH NVIDIA, AMD, AND REALLY THOSE WHO ARE POWERING THIS CYCLE. OF COURSE, IT’S GOING TO BENEFIT THE ENTIRE SUPPLY CHAIN. WE’RE ALSO MUCH MORE FOCUSED ON CLOUD COMPUTING GENERALLY. DATA CENTERS, I THINK, THERE’S A LOT OF FEAR THAT THERE’S OVER BUILDING AND A LOT OF FEAR THAT THERE’S, YOU KNOW, THAT – THAT NOT IN MY BACK YARD AND YOU’RE

32:42 RAISING MY ELECTRICITY PRICES IS GOING TO DESTROY THE CYCLE. WE DO NOT BELIEVE THAT’S THE CASE. IF ONE CITY DOES NOT WANT THESE DATA CENTERS, OTHERS WILL VIE FOR THEM BECAUSE THEY’RE GOING TO HELP WITH ECONOMIC DEVELOPMENT. SO WE’RE – WE’RE PRETTY MUCH AT EVERY PART OF THE SUPPLY CHAIN WITH THE EXCEPTION OF THE SEMI CAP EQUIPMENT SPACE. STEPHEN: THE DATA CENTER QUESTION IS SO INTERESTING BECAUSE OF COURSE IT’S BECOME A MAJOR POLITICAL ISSUE IN THE MIDTERMS IN THE U.S. AS WELL. DO YOU THINK IF THERE IS A

33:14 DEMOCRATIC SWEEP IN THOSE MIDTERMS THAT ACTUALLY THERE COULD BE DAMAGE TO THAT DATA CENTER MOMENTUM? >> WELL, I THINK THAT THERE ARE – WELL, THERE ARE 50 STATES IN THE UNITED STATES. SOME ARE VERY WELCOMING OF DATA CENTERS. OTHERS LESS SO. THAT’S TRUE TODAY. IT WILL BE TRUE AFTER THE MIDTERMS. SO I THINK THOSE STATES WHO REALLY DO VIE FOR DATA CENTER ACTIVITY ARE GOING TO SEE MUCH FASTER GROWTH. AND THAT WILL BE CLEAR.

33:44 THE OTHER THING AND THIS I THINK WILL SURPRISE PEOPLE. THE OTHER THING THAT I BELIEVE THESE STATES WILL SEE IS MUCH LOWER ELECTRICITY PRICES OVER TIME. BECAUSE THERE’S SO MUCH INVESTMENT IN THE SPACE. SO I THINK – I THINK THE POLITICAL RHETORIC IS A LITTLE OFF BASE WHEN IT COMES TO THE IMPACT OF DATA CENTERS. STEPHEN: ON THE QUESTION OF THAT INVESTMENT, WE’VE HAD THESE COMMENTS IN RECENT DAYS, HOCK TAN FROM BROADCOM LIKENING SOME INVESTORS IN THIS SPACE TO A

34:17 CASINO, RAY DALIO CALLING IT A CLASSIC BUBBLE. DO YOU SEE WHERE THEY’RE COMING FROM WHEN THEY MAKE POINTS LIKE THAT? HOW SERIOUSLY DO YOU TAKE THOSE CONCERNS? >> WELL, I’M ACTUALLY HAPPY THAT THERE ARE CONCERNS OUT THERE. AND THATS – THAT THIS IS A MUCH MORE BALANCED ARGUMENT THAN WE SAW IN THE LATE 1990’S DURING THE TECH AND TELECOM BUBBLE WHICH WENT COMPLETELY OFF COURSE. SO I THINK THAT WHAT THEY ARE DOING IS HELPING US BUILD THIS WALL OF WORRY.

34:51 WALLS OF WORRY TEND TO BE OVER TIME VERY DURABLE BULL MARKETS. BECAUSE THERE AREN’T THESE MASSIVE SPECULATIVE RUNS. MEMORY WOULD BE A BIT OF AN EXCEPTION AS I MENTIONED BEFORE THAT IS THE MOST CYCLICAL PART OF THE SEMICONDUCTOR WORLD. SO IT’S NOT THAT THERE’S NO SPECULATION OUT THERE. BUT IF WE’RE RIGHT, AND WE ARE IN A TECHNOLOGY REVOLUTION, THE LIKES OF WHICH WE HAVE NOT SEEN SINCE THE INDUSTRIAL REVOLUTION, AND THE CAPEX SPENDING NEEDS ARE GOING TO

35:25 DWARF THOSE OF THE INDUSTRIAL REVOLUTION, AGAIN, WE’RE CLOSER TO THE BEGINNING OF THIS INVESTMENT BOOM. YOU KNOW, THOUGH, I ALWAYS SAY WHEN THERE ARE, YOU KNOW, DISSENTERS OR PEOPLE WHO DISAGREE WITH WHAT WE’RE SAYING, THIS IS WHAT MAKES A MARKET. AND I THINK IT’S – IT’S VERY GOOD THAT THE CONCERNS. BECAUSE IT KEEPS INVESTORS ON THEIR TOES. STEPHEN: ANOTHER CONCERN THAT INVESTORS DO HAVE IS AROUND AI SAFETY. YOU DO HAVE A HOLDING IN OPENAI. SAM ALTMAN RIGHT TO PUSH BACK

35:58 THE IPO AS THEY ADDRESS THOSE SAFETY CONCERNS? >> WELL, I THINK THAT THE HUGGING FACE INCIDENT WHICH I KNOW YOU’VE – YOU’VE TALKED A LOT ABOUT. I THINK THAT PUT EVERYONE ON HIGH ALERT. AND, YOU KNOW, I HAD THE PLEASURE OF BEING ON A PANEL RECENTLY WITH GENERAL NOXAONI ON THE BOARD OF OPENAI BUT CAME

36:29 OUT OF COM – CXMT AND VIBE COMMAND IN THE U.S. MILITARY AND LEARNED SOMETHING FROM HIM THAT OUR RESEARCH SURFACED AS WELL. THAT THE WAY THESE COMPANIES NOW ARE FINE TUNING THEIR MODELS AS THEY BEGIN TO RELEASE THEM TO THE PUBLIC IS TO FINE TUNE THEM MORE FOR CYBER DEFENSE. IN OTHER WORDS, TO SURFACE VULNERABILITIES IN SOFTWARE THAT HAVE BEEN IN PLACE FOR 30, 40, 50 YEARS AND HUMAN BEINGS HAVE NOT FOUND AND THEN TO FINE

37:00 TUNE THEM FOR CYBER OFFENSE SO THAT THOSE WITH NEFARIOUS IDEAS ABOUT HOW TO USE THIS TECHNOLOGY ARE NOT GOING TO BE EMPOWERED. STEPHEN: OK. CATHY WOOD, FOUNDER AND CEO OF ARC INVEST. GREAT TO TALK TO US ON THE PROGRAM. THANKS FOR JOINING US. COMING UP, WE’LL RETURN TO THE BLOOMBERG NEW ECONOMY FORUM AS WORLD LEADERS GRAPPLE WITH A RAFT OF GLOBAL ISSUES. WE WILL BE SPEAKING TO SINGAPORE’S DEPUTY PRIME MINISTER. THAT’S NEXT. THIS IS BLOOMBERG.

37:55 STEPHEN: WELCOME BACK TO “BLOOMBERG DAYBREAK: EUROPE.” WE’RE IN NEW DEHLI FOR BLOOMBERG’S NEW ECONOMY FORUM BRINGING TOGETHER GLOBAL PUBLIC AND PRIVATE SECTOR LEADERS. INCREASINGLY SHIFTING GEOPOLITICS AND CHANGING GLOBAL SUPPLY CHAINS. LET’S GO STRAIGHT TO THE INDIAN CAPITAL. BLOOMBERG’S HASLINDA AMIN THERE FOR US. >> HI, STEPHEN. YOU TALK ABOUT SHIFTING GEOPOLITICS. WELL, I HAVE A MAN WHO UNDERSTANDS IT ALL. GANN KIM YONG, MINISTER FOR

38:26 TRADE AND INDUSTRY IS WITH ME RIGHT NOW. DPM YONG, THANK YOU FOR JOINING US. WE TALK ABOUT THE UNCERTAINTY IN THE WORLD TODAY. HOW IS SINGAPORE POSITIONING ITSELF AND HOW IS IT CAPITALIZING ON THE STABILITY IN THAT POSITIONING? DPM YONG: WELL, I THINK IT’S TRUE THAT THE WORLD IS BECOMING INCREASINGLY FRAGMENTED. AND THEREFORE THERE ARE CHALLENGES. THAT ARE EMERGING THAT WE’VE NEVER SEEN BEFORE. THE WORLD HAS BECOME A LOT MORE UNCERTAIN. A LOT MORE VOLATILE. UNPREDICTABLE. BUT THIS – DESPITE ALL THESE CHALLENGES THERE’S – CONTINUES

38:58 TO BE A LOT OF GOOD OPPORTUNITIES. IN SINGAPORE TO BE NIMBLE AND SEE SOME OF THESE OPPORTUNITIES. FROM SINGAPORE’S POINT OF VIEW, FOR EXAMPLE, WE’VE ALWAYS – WE ARE A FINANCIAL HUB FOR BUSINESSES AND ALSO FOR THE LOGISTICAL SUPPLY CHAIN. IN THE MIDST OF THIS REORGANIZATIONAL SUPPLY CHAIN AND INVESTMENT FLOWS, I THINK THE HUB POSITION IS GOING TO BE VERY IMPORTANT ROLE. AND UNDERLYING ALL THESE IS REALLY THE ELEMENT OF TRUST. SINGAPORE HAS ALWAYS BEEN KNOWN AS A RELIABLE PARTNER.

39:30 WE ARE TRUSTED. AND WE ARE EFFICIENT. WE ARE NIMBLE. WE ARE – WE CAN MOVE FAST AND THAT IS OUR STRENGTH. SO WE DID THE ECONOMIC STRATEGY. AND TO SEE HOW WE CAN ANCHOR ON TRUST AND PUSH AHEAD WITH OUR RESTRUCTURE. HASLINDA: IT IS ALSO A HUB FOR WORLD MANAGEMENT AND THAT’S A LOT OF COMPETITION FOR THAT, RIGHT? I MEAN, HONG KONG, CASE IN POINT, SEEMS TO BE THE DEFAULT. HOW DO YOU COMPETE AND HOW DO YOU – FROM THE LIKES OF LONDON, DUBAI, WHERE YOU’RE SEEING TEXAS DRIVING CAPITAL

40:01 AWAY? DPM YONG: I THINK WE JUST HAVE TO WORK FASTER AND WORK HARDER. I THINK SINGAPORE HAS ALWAYS BEEN A FINANCIAL HUB INCLUDING A HUB FOR WELT MANAGEMENT. WE CONTINUE TO DO SO. WE CONTINUE TO MAKE SURE THAT OUR REGULATIONS, OUR RULES ARE UP TO DATE, AND WILL FACILITATE MANY OF THESE OPERATIONS FOR WEALTH MANAGEMENT AND COMPETITION IS A GIVEN. WE HAVE ALWAYS BEEN COMPETING WITH FINANCIAL CENTERS AROUND THE WORLD. IN HONG KONG, DUBAI, OR LONDON, OR NEW YORK, FOR THAT MATTER.

40:32 WE CONTINUE TO IMPROVE OURSELVES. MAKE SURE THAT WE’RE EFFICIENT. AND WHAT IS EVEN MORE IMPORTANT AS I MENTIONED EARLIER IS THE ELEMENT OF TRUST. THAT YOU CAN TRUST SINGAPORE. AND MANAGE OUR WEALTH AND THIS IS WHERE THE WEALTHY PEOPLE WANT TO PUT THEIR ASSETS HERE. HASLINDA: SHIFTING GEOPOLITICS ALSO AND AN IRAN WAR THAT’S INTO THE EIGHTH MONTH. A LOT OF IMPLICATIONS IN TERMS OF ENERGY SECURITY. HOW IS SINGAPORE THINKING ABOUT THAT? DPM YONG: ENERGY HAS ALWAYS BEEN EXISTENTIAL FOR US. AND THAT IS WHY ONE REASON WHY WE CHANGE OUR MINISTRY TO ADD

41:05 IN THE WORD ENERGY AND THE NAME OF OUR MINISTRY TO UNDERLIE THE IMPORTANCE OF ENERGY AND THE RULING PLACE IN OUR ECONOMY AND AN E TENSION ISSUE REALLY. SO WE LOOK AT ENERGY FROM DIFFERENT ANGLES. FIRST, WE WANT TO MAKE SURE WE HAVE DIVERSIFIED SOURCES OF ENERGY. TODAY, WE RELY PRIMARILY ON NATURAL GAS TO FIRE OUR ELECTRICITY GENERATOR. WE ALSO ARE LOOKING AT IMPORTATION OF ELECTRICITY FROM OUR NEIGHBORS AND AT THE SAME TIME, WE ARE ALSO LOOKING AT DIFFERENT SOURCES OF NATURAL GAS. SO THAT WE DON’T DEPEND ON A

41:36 SINGLE SOURCE FOR OUR SUPPLY OF NATURAL GAS. HASLINDA: IS NUCLEAR ENERGY FEASIBLE? DPM YONG: I WAS ABOUT TO COME TO THAT. I THINK WE ARE STILL STUDYING. TODAY, WE HAVE NOT MADE A DECISION. BUT IT’S IMPORTANT FOR US TO KEEP PACE WITH THE DEVELOPMENT OF TECHNOLOGY. SO WE KNOW WHAT IS AVAILABLE AND WE CONTINUE TO KEEP OUR OPTIONS OPEN. I THINK THIS IS SOMETHING THAT WE CONSIDER VERY SERIOUSLY. HASLINDA: AND IT IS AN ISSUE FOR THE REST OF THE ASEAN NATIONS AND THE ASEAN ENERGY GRID HAS BEEN IN – QUITE A WHILE BUT NOT WHERE IT NEEDS TO BE.

42:08 WHY IS THAT THE CASE? DPM YONG: IT’S A VERY MAJOR CHALLENGE FOR COUNTRIES TO COME TOGETHER TO DECIDE AND TO IMPLEMENT THIS – THIS IDEA AS YOU SAID IS ALMOST 30 YEARS OLD. BUT WE DIDN’T HAVE – TO BUILD THIS GRID. AND NOW WITH THE NEED FOR ENERGY, THE NEED FOR GREEN ENERGY, I THINK THE INTERESTS IN THE DEVELOPMENT IS THERE. AND GOING TO BE VERY COMPLICATED BECAUSE WE WILL – IT INVOLVES CROSS-BORDER ELECTRICITY TRADING. AND THIS IS SOMETHING THAT WE NEED TO DEVELOP.

42:39 AND ALSO – HASLINDA: IS IT GOING TO BE A MULTI-DECADE PROJECT? DPM YONG: GOING TO BE MULTI-YEARS AND MULTI-DECADES AND LOOK AT IT FROM AN INCXMTAL POINT OF VIEW. FIRST OF ALL, SINGAPORE WILL CONNECT OURSELVES WITH MALAYSIA. WITH INDONESIA. AND NEXT – MALAYSIA MAY CONNECT WITH THAILAND AND THE REST OF ASEAN. GOING TO BE STEP BY STEP AND ALSO UPGRADE INTERNAL DOMESTIC POWER GRID. IN ORDER TO BE ABLE TO CARRY THAT. HASLINDA: AND DPM, WHAT WOULD BE THE

43:13 PRIORITY OF THE CHAIRMANSHIP? DPM YONG: I ASK FOR YOUR PATIENCE AND THE DETAILS OF OUR DELIVERABLES SOON. AND ASEAN HAS MADE PROGRESS THIS YEAR. AND THE CHAIRMANSHIP, WE’RE GOING TO SIGN THE DIGITAL ECONOMY AGREEMENT AND WE HAVE ALSO COMPLETED NEGOTIATIONS O ON – THE GOODS AGREEMENT. WE HAVE HOPE TO HAVE – COME IN FORCE THIS YEAR AND NEXT YEAR, AND THE CHAIRMANSHIP, THESE TWO ARE IMPORTANT MILESTONES.

43:44 FOR EXAMPLE, THE – WE WANT TO IMPLEMENT IT AND HAVE IT COME INTO FORCE. WE – COME INTO FORCE NEXT YEAR. AND FOR – AND WE WILL BE COMING – WE HOPE TO IMPLEMENT IT NEXT YEAR. SO THAT WE CAN BENEFIT OUR MEMBER COUNTRIES. THOSE ARE THE TWO VERY CLEAR ONES. WE ARE ALSO EMBARKING ON THE GREEN ECONOMY FRAMEWORK AGREEMENT. THIS IS AFTER – SO THERE ARE MANY PIECES THAT ARE MOVING. AND WE HOPE TO SHARE MORE DETAILS IN TIME TO COME. HASLINDA: HOW ABOUT IN TERMS OF

44:17 INTRAASEAN TRADE AND NOT WHERE BUT WHERE IT COULD BE AND WHAT CAN BE DONE? DPM YONG: HALF FULL AND HALF EMPTY. AND HALF EMPTY AND WE CAN FILL IT UP IN TIME TO COME. THAT’S WHY WE UPGRADED THE ASEAN GOODS AGREEMENT AND THAT AGREEMENT WILL FACILITATE FURTHER INTRA-ASEAN TRADE AND OPTIMISTIC IN THE FACILITATING AND THE INTRA-ASHANE TRADE TO COME AND THIS WILL BENEFIT THOSE OF OUR TRADING PARTNERS BECAUSE WE ARE ABLE TO TRADE AMONG OURSELVES MORE EFFICIENTLY. AND OTHER COUNTRIES WHO ARE TRADING WITH US WILL FIND THEIR GOODS WILL BE ABLE TO MOVE MORE

44:50 FREELY WITHIN OURSELVES. SO IT’S A MUTUALLY BENEFICIAL FOR ALL. HASLINDA: AS YOU ASSESS THE CHALLENGES THAT SINGAPORE FACES, A SMALL NATION, EXPOSED TO EXPORTS AND TRADE IN A BIG WAY, WHAT ARE YOUR MAIN CONCERNS? DPM YONG: WELL, OUR CONCERN OF COURSE IS SINGAPORE IS OPEN. AND WE DEPEND ON THE WORLD’S ECONOMY TO FEED OURSELVES. SO IT’S IMPORTANT FOR US TO ENSURE THAT WE FACILITATE GLOBAL ECONOMIC GROWTH. WE DO OUR PART TO BE A HUB, TO SUPPORT ECONOMIC ACTIVITIES AROUND THE WORLD. AND IF THE WORLD IS DOING WELL, SINGAPORE WILL DO WELL.

45:22 AT THE SAME TIME, I’M GOING TO SAY THAT ALTHOUGH WE ARE SMALL, WE HAVE OUR OWN VULNERABILITIES. BEING SMALL IS ALSO AN ASSET. AND THIS ALLOWS US TO MOVE VERY QUICKLY – HASLINDA: BE NIMBLE. DPM YONG: NIMBLE AND CHANGE AND ADAPT VERY QUICKLY. AND BE ONE STEP OR HALF A STEP AHEAD OF OUR COMPETITION. I THINK WE WILL MAKE IT. HASLINDA: DPM, WE THANK YOU VERY MUCH FOR YOUR TIME. THERE YOU HAVE IT. ABOUT BEING NIMBLE. BACK TO YOU IN LONDON. STEPHEN: HASLINDA AMIN IN NEW DEHLI. THANK YOU VERY MUCH. ONE OF THE MANY INTERESTING

45:54 CONVERSATIONS WE’VE BEEN HAVING FROM THAT EVENT AND LATER TODAY FRANCINE LACQA HOSTS “THE PULSE” FROM BLOOMBERG’S NEW ECONOMY FORUM IN NEW DEHLI. SHE WILL BE JOINED BY GUESTS INCLUDING SWITZERLAND’S STATE SECRETARY FOR ECONOMIC AFFAIRS AND KEVIN SNEEDER FROM GOLDMAN SACHS. WELL, JUST TAKING A LOOK AT SOME OF THE CHARTS TRACKING THE MARKET MOVEMENTS THAT WE’VE BEEN FOLLOWING FOR YOU THIS MORNING, THINKING ABOUT THE BREADTH ON THE S&P 500. WE’VE BEEN TALKING A LOT ABOUT THE CONCENTRATION IN CHIP MAKERS IN PARTICULAR. BUT ACTUALLY, AS WE’VE SEEN THE

46:25 SELLOFF IN CHIP MAKERS, THAT’S RELIEVED SOME OF THE CONCENTRATION THAT THERE HAS BEEN ON THE S&P 500. THIS CHART TRACKS THE YEAR TO DATE HIGHS OR LOWS THAT HAVE BEEN TRACKED. WHO PERCENTAGE OF THE S&P AND WE HAVE SEEN THAT DECLINE IN RECENT DAYS AS CHIP MAKER SHARES HAVE BEEN FALLING. AND THINKING A LITTLE BIT MORE DETAIL ABOUT THE PICTURE FOR CHIP MAKERS. THIS PHILADELPHIA SEMICONDUCTOR INDEX, THE SOX INDEX, IS DOWN ALMOST 5% THIS MONTH. THE FIFTH STRAIGHT DAY OF DECLINES THAT WE HAD IN TRADING YESTERDAY. THE LONGEST LOSING STREAK SINCE JULY. A BIT OF SUPPORT FOR CHIP

46:56 MAKERS FROM SK HYNIX AND SAMSUNG IN ASIA TODAY AS WELL AND THE ASML, EARNINGS GIVING US ANOTHER PICTURE OF AI SPENT SENTIMENT AND THAT’S SOMETHING WE WILL BE THINKING ABOUT WHEN WE’RE THINKING ABOUT HOW THOSE SHARES ARE GOING TO OPEN. TRADEGATE INDICATING THE SHARES ARE LOWER DESPITE THE NEWS THAT WE HAD FROM ASML UPGRADING THE LOWER END OF ITS 2026 SALES GUIDANCE. THE THIRD TYPE IT’S UPGRADED GUIDANCE THERE AS WELL AND QUESTIONS AROUND AI SENTIMENT STILL VERY MUCH RELEVANT. BUT THINKING ABOUT SOME OF THE POTENTIAL RISKS INVOLVED IN THIS AS WELL WE MENTIONED IT WHEN WE SPOKE TO CATHY WOOD FROM ARC INVEST EARLIER IN THE

47:30 PROGRAM AND THE PUSHBACK DATA CENTERS HAVE RECEIVED IN SOME PLAINTIFFS’ BUT ALSO THE QUESTIONS AROUND HOW MUCH DOWN THE LINE THERE’S GOING TO BE AS MUCH DEMAND FOR THESE DATA CENTERS. THIS IS THE CREDIT DEFAULT SWAPS FOR COREWEAVE AND BEEN RISING IN RECENT MONTHS WHICH IS SOMETHING THAT’S GOING TO BE VERY INTERESTING TO WATCH. HYPERSCALERS IN PARTICULAR. WE HAVE AN ANNOUNCEMENT FROM MICROSOFT, FOR EXAMPLE, ABOUT BUILDING ITS OWN DATA CENTER CAPACITY. IS THAT GOING TO MEAN LESS DEMAND FOR THE LIKES OF COREWEAVE THAT ARE PROVIDING IT ON A NEOCLOUD BASIS? ANOTHER FACTOR AROUND THE AI

48:01 TRADE THAT WE ARE WATCHING FOR YOU LEADING US TO THE OTHER STORIES THAT WE ARE KEEPING AN EYE ON FOR YOU ON BLOOMBERG TODAY. WE’RE LIVE AT THE INTERNATIONAL APE SUMMIT IN DUBLIN. AND FURTHER DISCUSSIONS THERE AROUND THE FUTURE OF THE TECHNOLOGY. WE’LL HAVE EARNINGS FROM BANK OF AMERICA AND MORGAN STANLEY UP NEXT AS WELL AND NEXT U.S. BANK EARNINGS AND THAT ANTICIPATED U.S. INFLATION PRINT. PLUGS THE FED’S BEIGE BOOK TO LOOK FORWARD TO AS WELL. COMING UP ON “THE OPENING TRADE,” CONVERSATIONS WITH COMMERZBANK CEO BENTA ORLOF AND ANTHROPIC’S HEAD OF INTERNATIONAL. THAT’S ALL UP NEXT FOR YOU.

48:33 STAY WITH US. THIS IS BLOOMBERG.