SK Hynix Profit Beat Adds Fuel to AI Rebound Trade

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: SK Hynix Profit Beat Adds Fuel to AI Rebound Trade · Channel: Bloomberg Television · 1:34:44 · Watch on YouTube

Topics: AI infrastructure and hardware, Markets and economy

Summary

Bloomberg Television’s Asia Trade covers a broad market rebound, with renewed enthusiasm for AI and chip stocks ahead of major earnings and central-bank decisions. SK Hynix reported record operating profit and outlined substantial shareholder returns, while analysts discussed persistent memory demand, supply constraints, investment risks, and competition. The program also examines rate outlooks in the U.S., New Zealand, and Australia, alongside breaking inflation data and political developments in Brazil and Israel. Later segments discuss AI investment and ethics, Hong Kong’s role in AI research, and the outlook for India’s record IPO.

Key points

SK Hynix reported third-quarter operating profit of 83.3 trillion won, with analysts highlighting strong memory pricing and AI-driven demand.
SK Hynix announced a 100 trillion won shareholder-return plan for 2026 and said long-term contracts cover more than half of its 2027–2028 production capacity.
Analysts said memory supply constraints could persist, while warning that a prolonged boom could attract competition from Chinese suppliers or new entrants.
Investors are watching whether AI infrastructure can be funded sustainably as borrowing needs, bond issuance, and tighter financial conditions raise questions.
A portfolio manager described reducing and diversifying AI exposure, favoring cash-generative businesses and companies supplying power and electrification infrastructure.
The Federal Reserve was expected to hold rates, with attention focused on Chair Kevin Warsh’s comments about inflation, financial conditions, and the December outlook.
New Zealand was expected to deliver a third consecutive rate hike, while Australian September CPI came in at 4.3% year over year, above expectations.
Brazilian opposition figure Flavio Bolsonaro was reported to have arrived in Miami as questions remained about his departure and ongoing investigations in Brazil.
Israel’s election results appeared deadlocked, with neither bloc securing a majority and Arab parties potentially playing a decisive role in coalition negotiations.
An AI research institute leader discussed the importance of industry collaboration, governance, international cooperation, and open-source models.

Chapters

Start	Chapter	Summary
00:18	Asia markets and the day’s agenda	The hosts preview AI and chip stocks, central-bank decisions, New Zealand rates, and political developments in Israel.
02:33	What to watch in SK Hynix’s results	A markets reporter discusses expectations for SK Hynix, memory demand, product mix, and the sector’s geopolitical importance.
05:16	Federal Reserve outlook and financial conditions	Strategists consider the Fed’s likely messaging, possible December rate moves, liquidity, and financial-stability risks tied to AI investment.
13:02	Bolsonaro’s reported departure from Brazil	A correspondent outlines uncertainty about Flavio Bolsonaro’s whereabouts, his family’s U.S. ties, and investigations into potential campaign financing.
20:38	Israel election and corporate headlines	The program updates oil and Israeli election developments before covering company news and the expected New Zealand rate decision.
24:03	SK Hynix reports record profit	SK Hynix’s results and shareholder-return plans lead to a discussion of memory pricing, long-term contracts, supply risks, and competition.
34:01	Market reaction to SK Hynix and AI stocks	Bloomberg reporters assess the muted share response, investment plans, broader AI-market strength, and the implications for regional markets.
42:05	Australian markets and the Fed debate	The show reviews Australian assets and inflation risks, then airs former Dallas Fed President Robert Kaplan’s views on rate timing and communication.
47:26	Asia opens and investors assess the chip rally	Markets open higher in Japan and Korea as guests discuss SK Hynix, Samsung, AI supply-chain diversification, and investment risks.
52:58	Portfolio strategy for the AI cycle	A portfolio manager explains reducing and diversifying AI exposure, favoring cash flow and companies that supply data-center power infrastructure.
59:27	One Earth Summit and Israel election update	A Hong Kong summit preview focuses on AI, ethics, and energy sustainability before a correspondent assesses Israel’s election deadlock.
65:39	New developments in the Bolsonaro story	A Brazil correspondent reports on Flavio Bolsonaro’s arrival in Miami and reviews the family’s political and legal history.
69:59	Australian inflation and market reaction	The RBA’s testimony and domestic inflation pressures are discussed, followed by Australian CPI at 4.3%, above expectations.
73:52	Taiwan’s AI supply chain and Anthropic’s IPO	The discussion covers Taiwan’s role in AI hardware diversification and reports on plans for Anthropic’s U.S. offering.
77:45	AI research, governance, and open models	A former Baidu president discusses his AI research institute, industry partnerships, AI governance, U.S.–China competition, and open-source models.
85:59	New Zealand rate outlook and corporate news	The program considers the RBNZ’s expected hike and future path, then covers corporate financing and the outlook for India’s major IPO.

Quotes

I think that would reflect that the risk for a December rate hike is more balanced — 06:52

we are moving into AI, and all of the data centers are rushing into signing a long-term contract. — 28:36

the question has moved from AI being financed versus AI that is funded. — 54:34

we have focused on having exposure to the trade but more selectively into companies where we can really see certainty on the outlook — 56:10

No country can do this alone. — 1:22:08

Concepts and entities

SK Hynix, NVIDIA, Samsung, Micron, Federal Reserve, Reserve Bank of Australia, Reserve Bank of New Zealand, HBM, data centers, One Earth Summit, Meta, Boeing, Flávio Bolsonaro, Gadi Eisenkot

Full transcript (original language)

00:18 >> THIS IS THE ASIA TRADE. I’M PAUL ALLEN IN SYDNEY. >> I’M HAIDI STROUD-WATTS. >> SK HYNIX EXPECTED TO REPORT A FOURFOLD RISE IN THIRD-QUARTER PROFIT ON SOARING MEMORY CHIP PRICES AS AI SPENDING ACCELERATES. >> SET TO FOLLOW WALL STREET HIGHER AS CHIPMAKERS RALLY. MARKETS EXPECTING THE FED TO HOLD. >> NEW ZEALAND SET FOR A THIRD STRAIGHT RATE HIKE IS THAT IRAN WAR ENERGY SHOCK IT KEEPS INFLATION ABOVE TARGET. WE SPEAK WITH THE GOVERNOR AFTER TODAY’S DECISION.

00:54 >> THE ISRAELI OPPOSITION EDGES AHEAD OF BENJAMIN NETANYAHU SETTING UP TENTS NEGOTIATIONS ON FORMING THE NEXT GOVERNMENT. LET’S GET YOU SET UP FOR TRADING AS WE EXPECT THE SLIGHTLY HIGHER IMPETUS GOING INTO THE SESSION. LOOKING POISED TO RISE, TRACKING THOSE GAINS ON WALL STREET. RENEWED ENTHUSIASM BACK IN THE AI TRADE LIFTED THE BROADER MARKETS. WE’RE LOOKING AHEAD TO CENTRAL-BANK DECISIONS, THE FED, THAT RATE DECISION

01:25 EXPECTED TO HOLD STEADY, BUT IT IS ABOUT COMMUNICATION FROM THE FED CHAIR IN TERMS OF DEFENDING THE PREVIOUS DECISION AND LOOKING AHEAD TO DECEMBER, THE MAINTENANCE OF FED CREDIBILITY KEY HERE, LOOKING TO BUY TIME BEFORE THE EXPECTED HIKE BY THE END OF THE YEAR. THE DATA MOST RECENTLY SHOWING CONSUMER CONFIDENCE WENT HIGHER IN OCTOBER IN THE U.S. AS WELL. IT IS DOUBTED THE AI TRADE WE ARE WATCHING, WHEN IT COMES TO MARKETS LIKE KOREA, TAKE A LOOK AT WHAT WE ARE WATCHING WHEN IT

01:59 COMES TO THE OTHER SIDE OF THE MACRO TRADE WITH OIL PRICES BEING SUPPORTIVE OF THE HIGHER SENTIMENT HOLDING. CONTINUE TO WATCH THE ISRAEL ELECTION RESULTS. PRETTY TIGHT IN TERMS OF THE POLICY DECISIONS WITH THE U.S. AND ISRAEL’S WAR WITH IRAN. TRADING JUST UNDER $100 A BARREL. FALLING 3% OVER THE PAST TWO SESSIONS. BRENT CLOSING BEFORE THE $114 LEVEL. TREASURIES AT THE MOMENT AS SOME ARE FACING A REVERSAL RISK

02:33 DEPENDING HOW HAWKISH WE HEAR THE FED BE. >> TOP OF THE AGENDA TODAY, AWAITING THIRD-QUARTER RESULTS FROM SK HYNIX. LET’S GET TO OUR MARKETS REPORTER. EXPECTATIONS ALWAYS SKYHIGH FOR THIS REPORT. WHAT ARE WE ANTICIPATING AND WHAT COULD IT BE FOR THE PARTNER SET UP? >> IT IS USUALLY A RESULT GOING INTO WHAT HAS BEEN A SHARP SELLOFF IN THE STOCK. TRADING AT A $1 TRILLION VALUATION. PARTNERS HAVING THE STOCK IN

03:07 SIZE. THE RETAIL IS GETTING SOME OF WHAT IT WANTS IN TERMS OF THE PREVIEW TO THE SHAREHOLDER RETURN, RETRACING THAT KIND OF PROBLEM WITH THE SHAREHOLDING STRUCTURE. A SOLID IPO LOOKING TO BE PULLED. THE RIGHT THING FOR THE RETAIL, NOW WE ARE LOOKING AT THE ACTUAL NUMBER. IT WILL BE THE BOGEY TO BEAT. INDIA IS VERY STRONG AND EARLY INDICATIONS, ALSO UP TO START.

03:41 THAT IS JUST FROM THE ANTHROPIC AND ORACLE NEWS. ALSO THE REPORTING THE CHINESE ARE LOOKING TO LOCK DOWN LITERALLY ANY SUPPLY SAMSUNG OR SK HYNIX CAN PROVIDE THEM. MEMORY DEMAND OUTLOOK IS EXTREMELY STRONG. WHAT WE LOOK FOR IS MORE DETAIL ON THE PRODUCT MIX, HOW THEY ARE DOING IN TERMS OF INVIDIOUS CERTIFICATION OF TOP-OF-THE-LINE CHIPS, PRODUCING THOSE RESULTS.

04:12 IT WILL BE ON THE BACK OF OLDER CHIPS. THEY WILL MOVE THE SUPPLY AS WELL. INTERESTING DISCUSSION AROUND WHAT CAUSED IT TO DO WELL, THE PRODUCTION BOTTLENECK, AND WHERE THE BOTTLENECKS ARE. >> THE SOLID STORY IN TERMS OF THE TALKS HAPPENING FOR FURTHER INVESTMENT IN A NEW CHIP PLANT. IT ALSO INVOLVES CHINA. FASCINATING. >> IT IS JUST AN INCREDIBLE STORY HOW MEMORY HAS GONE GEOPOLITICAL. IT IS AT THE CRUX OF THE

04:43 U.S.-KOREA RELATIONSHIP. ASIDE FROM THE SECURITY DYNAMIC THAT HAS BEEN DOMINATING THE RELATIONSHIP. THE KOREANS ARE TRYING TO OFFER INVESTMENT INTO THE U.S. SO IT CAN EXPAND IN CHINA WHERE HIGH-MARGIN DEMAND FOR LESS TOP-OF-THE-LINE CHIPS IS VERY STRONG. DDR 5, 4, EXTREMELY STRONG. KOREA DOES NOT WANT TO ABANDON THE MARKET WHILE THERE IS SUCH A SHARP MEMORY SHORTAGE.

05:16 IT COMES AS LOCAL PLAYERS ARE CATCHING UP. LOCAL PLAYERS ARE SLOW TO HIT THEIR TOP AND BECAUSE OF THEIR OWN CAPACITY CONSTRAINTS. IT IS ADJUSTING HOW TIGHT THE MEMORY MARKET IS AND HOW IT IS BECOMING GEOPOLITICAL. >> MARKETS REPORTER ANTHONY STEPHENS. TECH STOCKS RALLYING AHEAD OF THE KEY MEGA CAP EARNINGS. THE FED IN FOCUS. POLICY MAKERS EXPECTED TO KEEP RATES ON HOLD AS INVESTORS LOOK FOR FURTHER CLUES ON TIGHTENING WITH THE REST OF THE YEAR LOOKS LIKE. LET’S GET TO OUR BLOOMBERG

05:47 EQUITY STRATEGIST FOR THE MARKET OUTLOOK AND OUR BLOOMBERG ECONOMICS CHIEF JOINS US FROM WASHINGTON WITH MORE ON THE FED DECISION. I WILL GET IT FIRST TO YOU IN TERMS OF THAT SET UP. NO REAL SURPRISES IN TERMS OF THE POLICY MOVE IN THE MEETING. WHAT ARE WE EXPECTING WITH REGARD TO SOME OF THE COMMUNICATIONS HERE, KNOWING THE NEW FED CHAIR IS NOT A BIG FAN OF FORWARD GUIDANCE, AND THAT HAS PROBABLY BECOME LESS RELEVANT IN THIS LEADERSHIP?

06:21 >> WE WILL BE WATCHING FOR WHAT KEVIN WARSH SIGNAL FOR DECEMBER AT THE FED MEETING DECISION. WE SAW IN THE LAST MEETING THAT THEY EXPECT ANOTHER HIKE. JUST AHEAD OF BLACK OUTCOME OF BLACKOUT, THE MEDIA PARTICIPANTS, SO WITHOUT EXPLICIT FORWARD GUIDANCE, WE WILL HAVE TO LISTEN FOR HINTS IN THE PRESSER, INCLUDING HOW HE DESCRIBED FINANCIAL CONDITIONS RECENTLY.

06:52 SUPPOSE HE EXPRESSED CONCERNS THAT AI TRADE SELLOFF RECENTLY, IMPLY THAT FINANCIAL CONDITIONS HAVE TIGHTENED, I THINK THAT WOULD REFLECT THAT THE RISK FOR A DECEMBER RATE HIKE IS MORE BALANCED RATHER THAN PERFECTLY PRICED IN THAT THE MARKETS HAVE RIGHT NOW. ON THE OTHER HAND, IF KEVIN WARSH DID NOT EXPECT ANY CONCERN ABOUT THE AI TRADE, CONTINUING TO THINK THAT AI IS VERY ROBUST AND HE THINKS INVESTMENT WILL CONTINUE TO BE

07:28 STRONG, I THINK THAT IS CODE FOR I THINK THE FED IS ON THE PATH TO HIKING IN DECEMBER. >> THERE’S ALSO A RISK IN TERMS OF THE MIDTERMS. TYPICALLY THE FED SHIRKS THAT ANYTHING THAT LOOKS REMOTELY POLITICAL. MORE EVIDENCE WE MIGHT NOT SEE IT MOVE OR SEE A MOVE THIS WEEK. AFTER THE MIDTERMS, WHAT SORT OF RISKS ARE WE LOOKING AT, PARTICULARLY WITH THE SITUATION WHERE NOBODY HAS THE POWER TO START IMPOSING PHYSICAL DISCIPLINE?

08:01 WHAT IS THE IMPACT IN BONDS AND EQUITIES? >> MIDTERMS WILL BE A CLEARING FOR MARKET AND INVESTORS, IT WILL BE ON EVERYONE’S MIND. PARTICULARLY WITH THE DATA CENTER MORATORIUM. WHAT – FOR THE FEDERAL RESERVE, ULTIMATELY THERE IS THE RATE HIKE OUTLOOK INVESTORS ARE THINKING ABOUT. THERE IS ALSO THE BALANCE SHEET. THE BALANCE SHE IS PROBABLY MORE IMPORTANT IN TERMS OF WHAT IS PROVIDING IN TERMS OF LIQUIDITY TO CREDIT MARKETS AND OVERALL FINANCIAL CONDITIONS.

08:33 WHAT WE HAVE SEEN ON THE BALANCE SHEET, IT HASN’T STOPPED RISING. IT IS NOW ACTING AS A TIGHTENING MECHANISM FOR CAPITAL MARKETS. ONCE THE AI TRADE DISCUSSION HAS MOVED INTO FINANCING, THE AI BUILDUP, SO ANY SORT OF DISCUSSION AROUND THE BALANCE SHEET IS WHAT I THINK INVESTORS WILL BE KEEN TO FOCUS ON PAST THE MIDTERMS. >> A STRANGE

09:10 INVESTMENT ENVIRONMENT TALKING ABOUT HOW HISTORICALLY UNAPPEALING TREASURIES ARE, EVEN WITH YIELDS PAST 5%. ALSO CONCERNS AS A RATES MOVE HIGHER, DO YOU SEE THE IMPACT WHEN IT COMES TO THE ENORMOUS AMOUNT OF BOND ISSUANCE IN THE TECH SPACE? WHEN DOES IT START HAVING AN IMPACT? >> IT IS THE QUESTION WE ARE ALL GRAPPLING WITH WHEN THE TIGHT LIQUIDITY CONDITIONS ACT AS A HANDBRAKE ON THE AI TRADE.

09:45 A LOT OF IT WILL COME DOWN TO THE FED AND HOW THEY WANT TO MANAGE LIQUIDITY. IT IS TRUE MARKETS NEED LIQUIDITY. THAT IS THE NUMBER ONE CONSIDERATION FOR THE FEDERAL RESERVE. KEVIN WARSH AND TEAM WILL BE WATCHING HOW THE CONDITIONS EVOLVE. WE’VE SEEN FINANCIAL CONDITIONS TIGHTEN, CREDIT SPREADS WIDEN. I’M SURE THEY ARE WATCHING THIS CLOSELY. AND THEY ARE MONITORING THE ACTIVITY IN THOSE PARTICULAR INSTRUMENTS TO MAKE SURE THERE’S A SMOOTH FUNCTIONING OF THE FINANCIAL SYSTEM. AND AT SOME POINT WHEN

10:19 INFLATION RISKS REEMERGE, THE FED WILL HAVE A TOUGH SITUATION TO ADD LIQUIDITY AT A TIME THERE IS INFLATIONARY RISKS. PROBABLY AWAY FROM THAT DISCUSSION. >> TO WHAT DEGREE DO JITTERS AROUND AI FACTOR INTO THE FED DECISION-MAKING AT THE MOMENT? >> I THINK HAVING WORKED AT THE FED, A LOT OF IT IS SLOWER THAN MARKET PARTICIPANTS IN TERMS OF READING THESE CONDITIONS.

10:53 THERE ARE SOME PARTICIPANTS WHO HAVE ON THEIR RADAR THE FINANCIAL STABILITY RISK COMING FROM THE FINANCING OF THE AI BUILDUP. WE HAVE SEEN SOME PARTICIPANTS DISCUSS THESE RISKS BACK IN THE JULY MEETING. HOWEVER, IN THE LAST MEETING, WE’VE SEEN VERY FEW MENTIONS OF WORRIES ABOUT FINANCIAL STABILITY RISK. SO I THINK IN THIS MEETING WITH WHAT IS GOING ON WITH CREDIT SPREADS, AI COMPANIES, IT WILL COME BACK ONTO THE TABLE AND WE

11:27 WILL BE LISTENING VERY CLOSELY TO KEVIN WARSH AND THE MINUTES THAT COME OUT LATER ON WHETHER THE AI FINANCIAL STABILITY CONCERNS IS ON THE MINDS OF POLICYMAKERS. >> WHAT SORT OF IMPACT DO YOU THINK WE CAN EXPECT TO SEE IN TERMS OF THE AI INVESTMENT, THE HUGE AMOUNT OF AI INVESTMENT THAT HAS GONE INTO THE ECONOMY ALREADY?

11:59 IS IT GOING TO BE A SWAY WHEN IT COMES TO MONETARY POLICYMAKING? >> I THINK THE FEDERAL RESERVE HAS INDICATED NOT ONLY IS IT COMPETING FOR CAPITAL IN TERMS OF DEBT MARKETS, IT IS OBVIOUSLY FINDING A BIG PART OF ECONOMIC GROWTH. BLOOMBERG’S ECONOMIC TEAM HAS DISCUSSED THIS IN GREAT DETAIL. IT IS GOING TO BE A CONSIDERATION HOW THE BOOM

12:31 REVOLVES OVER THE NEXT SEVERAL YEARS AND WHAT THE RATE OF CHANGE OF THE GROWTH INVOLVES. I’M SURE THE FEDERAL RESERVE WILL TAKE INTO CONSIDERATION AS – IF GROWTH TAPERS OFF, WHAT ULTIMATELY IT IS GOING TO LEAD FOR TIGHTNESS IN THE LABOR MARKET OR INFLATIONARY EXPECTATIONS. >> ARE EQUITY STRATEGIST AND ECONOMICS CHIEF U.S. CORRESPONDENT.

13:02 COMING UP, DEFEATED BRAZILIAN PRESIDENT CONTENDER BOLSONARO SET FOR EXILE IN THE U.S. AS THE STATE DEPARTMENT SAID IT WILL ISSUE VISAS FOR HIM AND HIS FAMILY. TO SAO PAULO NEXT. THIS IS BLOOMBERG.

14:04 >> SEE IN BRAZIL SAYS DEFEATED PRESIDENTIAL CANDIDATE HAS ARRIVED IN THE U.S. AS A STATE DEPARTMENT FOR HIM AND HIS FAMILY WOULD ISSUE VISAS. FACING MULTIPLE CRIMINAL INVESTIGATIONS IN BRAZIL. AND HE DEFIED A COURT ORDER TO SURRENDER HIS PASSPORT. LET’S CROSS TO SAO PAULO AND OUR BRAZIL CORRESPONDENT. WHAT DO WE KNOW IN TERMS OF HIS ABSENCE FROM THE COUNTRY AND WHAT IS BEING DRIVEN IN TERMS OF THAT DECISION? >> GOOD MORNING.

14:37 WE HAVEN’T HAD A PROPER INFORMATION OF HIS WHEREABOUTS FOR AT LEAST 24 HOURS. WHAT WE KNOW FOR A FACT IS HIS LAWYERS, HIS CAMPAIGN HELPERS, NONE OF THEM HAD CONTACT WITH HIM SINCE THE START OF THE DAY. THEY DON’T KNOW WHERE THEY ARE. WE HAD REPORTS IN THE MORNING AND BRAZIL, THIS IS STILL THE END OF THE DAY, TUESDAY. WHAT WE HAD FROM THE PRESS IN ARGENTINA IS HE ENTERED THE

15:08 COUNTRY AND FROM THERE WOULD TAKE A PRIVATE JET TO FLY TO THE U.S. ARGENTINE OFFICIALS, INCLUDING THE PRESS OFFICE FOR THE PRESIDENCY DENIED THIS HAPPENED. LATER IN THE DAY, WE HEARD HE WAS IN ROUTE TO THE U.S. AND HE WOULD EITHER LANDED IN DALLAS OR IN MIAMI. THAT HAS NOT BEEN CONFIRMED. WE GOT INFORMATION FROM SOURCES IN D.C. SAYING THE U.S. GOVERNMENT WAS WILLING TO PROVIDE VISAS FOR HE AND HIS

15:39 WIFE AND DAUGHTERS. AS OF NOW, WE DON’T KNOW IF THEY ARE IN THE U.S., IN U.S. TERRITORY, AND WHAT IS THE CLAIM THAT THEY ARE GOING TO BRING UP FOR THEIR ENTERING THE COUNTRY. PAUL: CAN YOU TELL US ABOUT THE HISTORY THE BOLSONARO FAMILY HAS WITH PRESIDENT TRUMP IN THE U.S.? >> THAT IS A VERY GOOD QUESTION. THIS IS NOT THE FIRST TIME WE

16:13 HAVE SEEN SIMILAR EVENTS, LET’S SAY, HAPPENING WITH THE BOLSONARO FAMILY. HIS FATHER LOST A REELECTION TO LULA, THE CURRENT PRESIDENT AND CURRENT REELECTED PRESIDENT, IN 2022. RIGHT AFTER THAT, AFTER A FEW WEEKS, HIS FATHER FLED TO THE U.S. AND STAYED IN U.S. TERRITORY FOR SEVERAL MONTHS. CONTESTING THE RESULT OF THE ELECTIONS IN BRAZIL.

16:46 HE STAYED IN THE U.S.. FOR MONTHS HE FLEW BACK TO BRAZIL. AFTER THAT, THE SUPREME COURT AGAINST HIM, AND HE WAS CONVICTED. NOW HE IS ON HOUSE ARREST. WHAT WE KNOW IS THEY HAVE A CLOSE RELATIONSHIP WITH TRUMP. A BOLSONARO WHO USED TO BE A SENATOR IN BRAZIL, BROTHER IN THE FAMILY FLED TO THE U.S., HE’S BEEN THERE SINCE, ADVOCATING FOR THE FAMILY IN THE U.S..

17:22 LAST YEAR, PRESIDENT TRUMP IMPOSE TARIFFS, AT THE SAME TIME THE TRIAL OF JAEGER BOLSONARO WAS HAPPENING IN BRAZIL. AT THE END OF THE DAY IT DID NOT HAVE A MAJOR EFFECT IN THE DECISION. BOLSONARO HIMSELF WENT TO THE U.S. BEFORE THE CAMPAIGN FOR PRESIDENCY STARTED IN BRAZIL, TRYING TO LOBBY U.S. SUPPORT FOR HIS CAMPAIGN. WE NEVER HEARD PRESIDENT TRUMP OPENLY SUPPORT HIM, BUT IN THE PAST TWO DAYS, TRUMP SPOKE TWICE QUESTIONING THE

17:55 LEGITIMACY OF THE ELECTION AS A WHOLE. WE HAVE TO REMEMBER THAT HERE IN BRAZIL, THERE HASN’T BEEN ANY INDICATION THERE WASN’T ANY KIND OF FRAUD. WE HAD ALL AUTHORITIES WITHIN THE SENATE, IN THE LOWER HOUSE, ALL OF THEM RECOGNIZE THE REELECTION OF PRESIDENT LULA, AND ALL OF THEM, EVEN THE PARTY BOLSONARO WAS PART OF LAST NIGHT RECOGNIZED AND CONCEDED THAT HE WAS REELECTED. PRETTY INTERESTING TO SEE THE MOVE HAPPENING AT THIS MOMENT,

18:29 EXTREMELY IMPORTANT TO UNDERSTAND WHAT U.S. AUTHORITIES ARE GOING TO DO AND SAY ABOUT THIS. >> REALLY INTERESTING TO HAVE THIS CONNECTION BECAUSE BRAZIL’S SUPREME COURT HAS ORDERED FEDERAL INVESTIGATIONS INTO THE ILLEGAL FOREIGN FINANCING OF HIS CAMPAIGN. WE UNDERSTAND ONE OF THE GROUPS MAY HAVE A LINK TO U.S. VICE PRESIDENT JD VANCE. WHAT ARE THE DETAILS OF THESE PROBES?

19:01 >> THERE ARE SO MANY PIECES OF THIS GIGANTIC PUZZLE WE ARE DEALING WITH THAT IS HARD TO START EXPLAINING HOW THEY ACTUALLY CONNECT. BUT YOU ARE ABSOLUTELY CORRECT. TO SAY MORNING IN BRAZIL, WE HAD A DECISION BY THE SUPREME COURT THAT THEY WERE INVESTIGATING FAZIO BOLSONARO IN AT LEAST TWO CASES OF MONEY LAUNDERING. WITHIN PART OF THE INVESTIGATIONS, THE SAME JUDGE ORDERED THERE SHOULD BE DEEPER SCREENING OF POTENTIAL FINANCING OF THE BOLSONARO

19:33 CAMPAIGN BY FOREIGNERS OR EVEN SERVICES PROVIDED TO HIS CAMPAIGN BY THOSE OUTSIDE OF BRAZIL. BY LOCAL LAW. THAT IS NOT POSSIBLE, THAT IS NOT ALLOWED TO HAVE FOREIGN FINANCING TO LOCAL CAMPAIGNS. THEY ALSO DIRECTLY POINT TO ANY ADVERTISEMENT DONE THROUGH META-PLATFORMS, INCLUDING WHATSAPP AND INSTAGRAM, WHICH ARE EXTREMELY POPULAR, FOR ADVERTISEMENT DONE FOR POLYMARKET, THE PREDICTION MARKET THAT IS NOT ALLOWED IN

20:06 BRAZIL. WE KNOW FOR A FACT THAT INVESTIGATION WAS ORDERED YESTERDAY, MONDAY IN BRAZIL, WE HAD ANOTHER JUDGE ASKING HIM TO TURN IN HIS PASSPORTS BECAUSE HE HAS A DIPLOMATIC ONE AND ALSO A NORMAL ONE, BUT HE NEVER DID IT. THIS WAS DONE BEFORE HE ACTUALLY DISAPPEARED. ALL OF THIS CONNECTS TO THE SITUATION THAT AT THIS MOMENT EVERYONE WANTED TO KNOW WHERE HE WAS, HIS PASSPORTS WERE

20:38 SUPPOSED TO BE TURNED IN, BUT HE HAS NOT BEEN SEEN SINCE. >> BRAZIL’S COUNTRY CHIEF IN SAO PAULO, THANK YOU. LET’S CHECK IN ON THE OIL PRICE OFF OF THE HIGHS WE SAW EARLIER TODAY. JUST BELOW $114 A BARREL. THERE ARE EFFORTS TO DE-ESCALATE THE SITUATION, TURKISH, SAUDI, AND PAKISTANI OFFICIALS IN TEHRAN. WE ARE CLOSELY WATCHING THE

21:10 OUTCOME OF THE ELECTION AND ISRAEL. TOO CLOSE TO CALL. WE WILL KEEP YOU UPDATED ON THAT. THE TOP GLOBAL HEADLINES WE ARE FOLLOWING. THE OPPOSITION LEADER DOES HAVE A NARROW EDGE OVER PRIME MINISTER NETANYAHU AFTER HIS SELECTION. HIS BLOCK IS PROTECTED TO WIN 53 SEATS, AGAINST 50 FOR BENJAMIN NETANYAHU’S ALLIANCE. NEITHER HAS A MAJORITY, PUTTING TWO ARAB PARTIES IN A DECISIVE DECISION IN SETTING UP TENTS NEGOTIATIONS OVER WHO WILL FORM THE NEXT GOVERNMENT. LEADERS FROM FINLAND AND NORWAY

21:44 HELD A PHONE CALL WITH B PUTIN DISCUSS PROSPECTS FOR A PEACE DEAL IN UKRAINE. THE FINISH PRESIDENT DESCRIBES IT AS FRANK AND SUBSTANTIVE. RUSSIA AND UKRAINE HALTED FIGHTING AROUND A TOWN IN A RARE LOCAL CEASE-FIRE FOR THE INVOLVEMENT OF U.S. FIRST LADY MILLENIA TRUMP. THE TEMPORARY TRUCE IS TO ALLOW SUPPLIES AND THE EVACUATION OF CIVILIANS. MORE AHEAD ON THE ASIA TRADE, THIS IS BLOOMBERG.

22:26 >> THE LATEST FROM THE CORPORATE FRONT. MEADOWS $25 BILLION SHARED PROTRACTED DEMAND ABOUT FIVE TIMES THE AVAILABLE SHARES. MORE THAN HALF OF THE SHARES IN COMMON STOCK OFFERING WERE ALLOCATED TO LOW AND EXISTING INVESTORS. THE SALE OF PART OF THEIR PLAN 98 BILLION DOLLAR EQUITY FINANCING PUSH TO FIND A OUR INFRASTRUCTURE AND DEVELOPMENT. INVESTORS IN GEO PLATFORMS RECORD IPO ARE WATCHING THE MARKET FOR CLUES ON HOW THE STOCK COULD TRADE LATER TODAY. AT ABOUT 22% ABOVE THE IPO

22:59 PRICE FOR ROUGHLY 10 DAYS ACCORDING TO GRAY MARKET TRACKERS. THE RECORD 3.1 BILLION DOLLAR OFFERING WAS SUBSCRIBED MORE THAN 22 TIMES WITH STRONG DEMAND FROM INSTITUTIONAL INVESTORS. BOEING SHARES HAVE FALLEN TO A 19 MONTH LOW AFTER IT CUT ITS FOR YOU DELIVER TARGET, EXPECTING FEWER DELIVERIES THAN PLANNED. DREAMLINER DELIVERIES ARE SET TO COME IN NEAR THE LOW END OF THE FORECAST. BOEING IS DELAYING ITS NEXT INCREASE IN 737 PRODUCTION. >> NEW ZEALAND ASSETS TRACKING AHEAD OF THE DECISION TODAY.

23:33 WE ARE EXPECTING A 94% CHANCE OF A RATE INCREASED 25 BASIS POINTS TO 3%. HAS STRUGGLED TO BE FLAT. THE KIWI DOLLAR PRETTY SOFT AS WELL. YIELDS HAVE COME BACK DOWN, STABILIZING A BIT FROM THE MULTIYEAR HIGHS. WE WILL SPEAK WITH RB AND Z GOVERNOR AFTER WHAT IS EXPECTED TO BE THE CENTRAL BANK HALF 3RD STREET INTEREST RATE HIKE. THAT IS ON INSIDE LATER, EIGHT: 30 A.M. IN HONG KONG. 430 P.M.

24:03 IN NEW ZEALAND. >> BREAKING NEWS SOUTH KOREA. A BIT LATER THAN WE ARE ACCUSTOMED. BUT SK HYNIX, THIRD OPERATING PROFITS HUGE. 83.3 TRILLION ONE, 62.5 BILLION DOLLARS U.S., THERE ARE ABOUT.

24:35 THAT IS PRETTY MUCH IN LINE WITH ESTIMATES, A 100 TRILLION SHAREHOLDER RETURN FOR 2026. THESE ARE SOME OF THE KEY HEADLINES WE ARE GETTING AT THE MOMENT. WE DID HAVE A SLIGHT MISS ON THE NET INCOME, THAT WAS 39.5 TRILLION ONE. THE EXPECTATION WAS JUST A SHADE SHORT OF 60 TRILLION. LATE REPORT, BUT JUST IN TIME FOR OUR NEXT GUEST. THE RESEARCH DIRECTOR AT COUNTERPOINT JOINING US TO

25:08 UNPACK THOSE RESULTS. THANK YOU FOR YOUR TIME. I KNOW YOU’RE JUST GETTING THIS NEWS AS WE HEAR IT, BUT WHAT IS YOUR INITIAL REACTION? >> ANOTHER RECORD-BREAKING QUARTER. THE BOTTOM LINE AND THE TOP LINE ARE BEAUTIFUL. AT THE SAME TIME, WE NEED TO LOOK AT THE NUMBERS IN THE INDUSTRY AS A WHOLE. THIS PROBABLY ISN’T THE FIRST QUARTER THE DEALER INDUSTRY AS A WHOLE IS BREAKING THE $200 BILLION W MARK.

25:45 IT USED TO BE WELL BELOW $1 BILLION, BUT NOW IT IS A QUARTERLY RESULT. QUARTERLY REVENUE MORE THAN 200 BILLION DOLLARS. THAT IS BASICALLY ON THE PRICE UPSIDE, $20 UPDATE. ON AVERAGE SELLING PRICE AS AN INDUSTRY. WHICH HAS BEEN $.40, $.30. THIS IS A FUNDAMENTALLY DIFFERENT QUARTER. WE BELIEVE THAT IS VERY IMPORTANT TO NOTE. AT THE SAME TIME, SHAREHOLDER

26:23 RETURN AND THE RECENT PULLBACK OF ITS IPO IS TELLING THE INVESTORS THAT THE CAPITAL DISCIPLINE AND SYSTEM IN THIS INDUSTRY IS FAR BETTER THAN BEFORE. SO THOSE ARE TWO ALLIES, VERY BIG SOUNDINGS. >> IN TERMS OF THE SHAREHOLDER , SK HYNIX PLANNING AT LEAST A 30 TRILLION CASH DIVIDEND AND A TOTAL ONE HUNDRED TRILLION

26:54 SHARE FOR 2026. WHAT IS YOUR REACTION TO THAT? HOW SUSTAINABLE IS IT GOING INTO FUTURE EARNINGS? >> THE IMPACT GLASS PROBABLY 10 YEARS AGO. IF YOU HAVE A QUESTION TO ANY MANAGEMENT TEAM OF THE INDUSTRY, WHERE ARE YOU SOURCING YOUR CAPITAL EXPENDITURE? THEY MAY SAY FROM A B.. NOWADAYS, AT LEAST 50% IS RETURNING BACK TO THE

27:28 SHAREHOLDERS. AT THE SAME TIME, THERE IS POTENTIAL THE CYCLES ARE DURABLE AND A LOT OF RETURNS ARE GOING TO BE MORE STRUCTURED. AS MUCH AS WE ARE IN COUNTING, WE ARE FACING THAT THE PRICING SCHEME IS MORE STRUCTURAL THROUGH THE LONG-TERM AGREEMENT. SO WE ARE EXPECTING SHAREHOLDER RETURN IS NOT JUST ONE ITEM, BUT IT WILL BE MORE GEARED INTO

28:02 LONG-TERM SUSTAINABLE RETURN TO THE SHAREHOLDER. >> WE ARE GETTING MORE LINES FROM SK HYNIX, LONG-TERM CONTRACTS WITH 14 MAJOR CUSTOMERS. THEY EXPECT THE MEMORY SUPPLY SHORTAGE TO PERSIST TO 2030. IT FEEDS INTO YOUR THESIS AND FORECAST WE HAVE YET TO REACH THE PEAK WHEN IT COMES FOR THIS CYCLE. WHETHER IT WILL PERSIST THROUGH THE REST OF NEXT YEAR. >> RIGHT, WE NEED TO THINK OF THE RECENT AND THE BACKGROUND

28:36 WHY SUPPLIERS AND BUYERS ARE SIGNING UP FOR LONG-TERM CONTRACT. OF COURSE, SOME PLAYERS ARE EXPECTING THE PRICE LIMIT AT THE MOMENT IS VERY POSITIVE, THEREFORE LIKELY TO SIGN A LONG-TERM CONTRACT. AT THE SAME TIME, WE ARE MOVING INTO AI, AND ALL OF THE DATA CENTERS ARE RUSHING INTO SIGNING A LONG-TERM CONTRACT. THESE MEMORIES WILL BE THE KEY ELEMENT OF UTILITY GOING FORWARD.

29:11 NOT ONLY DATA CENTERS, BUT ALSO IN OUR NORMAL LIFE. SECURING THIS KEY FACILITY IN THE FUTURE IS VERY IMPORTANT FOR THEIR OWN SERVICE AS WELL. THERE IS ANOTHER REASON WE BELIEVE IT IS MORE STRUCTURAL IN THE NEAR TERM, AT LEAST THE NEXT COUPLE OF YEARS. >> SK HYNIX TALKING ABOUT THE LONG-TERM AGREEMENT VOLUMES. OVER 50% OF THE 2027-2028 PRODUCTION CAPACITY.

29:44 WHAT DO YOU THINK OF THOSE NUMBERS? TALK ABOUT THE RISKS. THE RISK IN TERMS OF WHICH ASPECTS OF THE BUSINESS WE ARE GOING TO SEE SAMSUNG OVERTAKE? >> SAMPSON HAS BEEN SUFFERING OUT OF THE NEW HBM MARKET OVER THE LAST FEW YEARS. WE ARE EXPECTING SAMSUNG WILL TAKE OVER SK HYNIX ON ITS MARKET FROM 2027 ALMOST SIMILAR NUMBER ONE AND NUMBER TWO

30:16 FOLLOWED BY MICRON. BUT MOVING FORWARD, THE BIGGER RISK IN THIS MEMORY MARKET, IF YOU POINT OUT THE RISK PROFILE, THERE IS A SUSTAINED BOOM CYCLE THAT WILL INVITE UNWANTED COMPETITION. COMPETITION FROM CHINA. AND AT THE SAME TIME, MAIN SUPPLIERS LIKELY TO LOOK INTO, OR WE MAY HAVE ANOTHER BIG TECH COMPANY MOVING INTO MEMORY PRODUCTION. THOSE UNWANTED COMPLICATIONS

30:50 ARE NUMBER ONE. AT THE SAME TIME, IF THESE SUPPLIES ARE GROWING BECAUSE OF THE BULL MARKET, SUSTAINABLE MARKET, AND GEOPOLITICAL TENSIONS AROUND SEMICONDUCTORS MAY CHANGE. NOW THOSE GEOPOLITICAL REGULATIONS FROM THE U.S. IS TO BLOCK KEY EQUIPMENT. BUT MOVING INTO THE DEALER

31:21 MARKET, TECHNOLOGY COMPETITION IS MOVING FROM 2D TO 3D. AND THERE’S NO ADVANTAGE. THAT MEANS REGULATION IS LIKELY TO SHIFT FROM EQUIPMENT TO MORE TRADE BARRIERS, OR INTELLECTUAL PROPERTY. THAT IS GOING TO HAVE MORE MEANINGFUL IMPACT IN THE FUTURE. >> ONE THING YOU ARE GOING TO BE WATCHING OUT FOR WHEN WE ARE ABLE TO DIG DEEP INTO THE

31:54 REPORT IS SK HYNIX ABILITY TO SUPPLY THOSE CHIPS TO NVIDIA. WHAT DO YOU NEED TO HEAR TO REASSURE YOU? >> WE HAVE BEEN HEARING A LOT OF EVIDENCE. FOR THE LAST FEW MONTHS, THE BIGGEST INVESTMENT IN THE MARKET IS TWO THINGS. NUMBER ONE, SK HYNIX IS NOT QUALIFIED BY NVIDIA, NVIDIA’S

32:26 CLOAKING IS NOT GOING TO WRAP UP AS EXPECTED NVIDIA MISS EARNINGS BECAUSE OF LACK OF SK HYNIX, HBM. THAT IS GOING TO BE MOVING A LOT OF THE AI SUPPLY CHAIN. AT THE SAME TIME, BECAUSE OF THE RISING PRICES, PEOPLE USE MORE HBM. UNFORTUNATELY, THERE HAS BEEN A CONCERN CUSTOMERS ARE TRYING TO CUT DOWN THE CONTENT.

32:59 AFTER SEPTEMBER, MOVING INTO OCTOBER, WE WILL THOSE CONCERNS. WE ARE BEHIND NEXT TO INCREASE THE MANUFACTURING YIELD. AT THE SAME TIME, NVIDIA COMPROMISING TO BRING DOWN THE PAIN A LITTLE BIT SO THAT THERE IS NO REAL CONCERN OF NVIDIA CHIPSET. BUT AT THE SAME TIME, THE

33:30 EARNINGS, THE CONTENT IS THE PREVIOUS PATTERN, WHICH REMAINS THE BIGGER THE BETTER, THE MORE THE BETTER. THE FASTER THE BETTER. THEREFORE, THERE IS NO REAL FUNDAMENTAL CHANGE IN THE AI, FUNDAMENTAL AROUND HBM. >> THE RESEARCH DIRECTOR AT COUNTER POINT. HARD TO ARGUE AGAINST THAT IN LIGHT OF THESE NUMBERS. SK HYNIX POSTING A JUMP FOR PROFITS SEVENFOLD.

34:01 DOUBTS OF THE SHAKY AI AND CHIP LEAD TRADE. SUBSCRIBERS CAN GO TO THE TERMINAL FOR MORE ON THOSE NUMBERS. THE LATEST FROM OUR TEAM OF EXPERT EDITORS HAPPENING RIGHT NOW. WE HAVE AN WHEN IT COMES TO SEE BOLSONARO ARRIVING IN MIAMI AND BEING RECEIVED BY HIS BROTHER. THIS AFTER FLYWHEEL BOLSONARO FLED BRAZIL FOLLOWING HIS ELECTION TO BEAT – DEFEAT IN THE PRESIDENTIAL ELECTION, ACCORDING TO REPORTING FROM THE LOCAL NEWSPAPER GLOBAL

34:32 REPORTING CITING HIS ALLIES. WE HEARD EARLIER THE U.S. WAS EXPECTED TO ISSUE RECENT – VISAS FOR HIM AND HIS FAMILY TO ENTER THE U.S., ACCORDING TO SOURCES FROM A SENIOR STATE DEPARTMENT OFFICIAL. WE HEARD THE REPORTS IN LIGHT OF BOLSONARO FACING MULTIPLE INVESTIGATIONS IN BRAZIL, HE HAD BEEN ORDERED TO SURRENDER HIS PASSPORT’S TO FEDERAL POLICE BUT FAILED TO DO SO. WE’VE SEEN PRESIDENT TRUMP BE A LONGTIME ALLY OF THE BOLSONARO FAMILY.

35:03 THE LOSS TO LULA DA SILVA DEALING A SETBACK TO THEM, THEY HAD SORT OF MEANT TO WOULD DEVELOP A POLITICAL DYNASTY IN BRAZIL. MORE CRIMINAL INVESTIGATIONS AT THE MOMENT, A CENTRAL PART OF HIS CAMPAIGN WAS TO TRY AND FEET – FREE THE FORMER PRESIDENT, HIS FATHER, SERVING A 27 YEAR SENTENCE FOR PLOTTING A COUP AFTER THE 2022 ELECTION LOSS. AT THE SAME TIME, LOOKING TO THE STORY OF BRAZIL’S SUPREME COURT PROBE INTO FOREIGN

35:34 FINANCING IN THE MOST RECENT ELECTION. WANTING FEDERAL POLICE TO OPEN UP THAT INVESTIGATION INTO POSSIBLE ILLEGAL FOREIGN FINANCING OF THE PRESIDENTIAL CAMPAIGN. PART OF THIS QUITE INTERESTINGLY INCLUDES A GROUP LINKED TO THE U.S. VICE PRESIDENT. IT’S A LOT GOING ON WHEN IT COMES TO THE BRAZILIAN POLITICAL DRAMA. MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG.

36:15 >> U.S. PRESS IN THE TRADE HAS SETTLED UP FOR A STRUGGLE ACROSS A BORE THAT HYNEK’S RESULTS WILL BE ADDING TO THE NARRATIVE AS WELL IN TERMS OF BOOSTING THE PERCEPTION OF THE HEALTH OF THE MEMORY TRADE. THERE IS ALSO RELIEF AMERICAN AI CAN STILL RACE MASSES OF CAPITAL. FOR MORE LET’S BRING IN ANTHONY STEPHENS. I’VE GOT TO GET YOU STARTED IN TERMS OF THE SK HYNIX NUMBERS. >> IT GAVE THE STREET PRETTY MUCH WHAT THEY WANTED. ON INCOME, CLEAN BEAT ON REVENUE.

36:50 PRETTY STRONG NUMBERS IN TERMS OF THE MARGINS. SHAREHOLDER RETURN PROGRAM CAME IN LIGHT WITH WHAT WE WERE TALKING ABOUT YESTERDAY. THE BUYBACK AS WELL. THE SHARES REALIZING ON THE UPSIDE IMPLYING MOVES. THE IMPLIED MOVE WAS AROUND 4% AROUND 76. THE ADR WAS MOVING. IT IS KIND OF MUTED. ONE OF THE REASONS FOR THAT IS THE FACT THEY HAVE LOCKED IN A LOT OF THESE CONTRACTS. 50% OF THEIR SUPPLY IS CONTRACTED OUT.

37:26 THAT IN BUSINESS TERMS IS VERY POSITIVE, IN TERMS OF INDICATION OF FUTURE PRICE, MAYBE NOT. MAYBE THERE IS MITIGATION, THEY WANT TO HEDGE THEIR RISK. THEY DON’T THINK THE PRICES CAN CONTINUE TO EXPLODE LIKE THEY HAVE. THE RISK MANAGEMENT FROM THEM, BUT IT MAY MOVE. ON THE OTHER,, A DRAMATIC INCREASE. IF YOU SEE THE STREET A LITTLE BIT SKITTISH ABOUT THE BIG INVESTMENT PLANS.

37:57 INTERESTING TO SEE HOW THE FOREIGNERS TRADE THESE PLANS. FOREIGNERS STAYING OUT OF THE BIG AND WHETHER THEY TURNED NET BUYERS. WE HAVE SEEN INTERESTING THAT BUYING ON THE BIG POP. THAT KOREA DEALT WITH BECAUSE OF SK HYNIX. BUT OUTSIDE OF IT, PLENTY OF BULLISHNESS TO GO AROUND. AN ARTICLE HAS EXPANDED ITS AI OFFERING AND THAT DROVE A LOT OF THE U.S. PRICE ACTION.

38:28 SHARES TRADED VERY STRONGLY AS THEY DIVERSIFIED AWAY FROM THE GPU’S FROM NVIDIA. ONE IS LOOKING GREAT, WE HAVE SOME REALLY STRONG BEATS ACROSS THE U.S. AI ECOSYSTEM AS IT STARTS TO ATTAIN CASH WITH MONEY AND WE SEE INVESTMENT IN HARDWARE. >> IT LOOKS LIKE WE ARE GETTING A FEW TAILWINDS FOR EQUITY MARKETS AROUND ASIA TODAY. A FEW BIG A GREAT ADDITION SINCE COMING BACK. THAILAND, RV AND SAID, THE RBA.

39:01 WHAT CAN WE SEE FROM THESE? >> WE DEFINITELY SEE THIS NON-AI COUNTRIES UNDER IT A LOT MORE. LITERALLY IN THE CASE OF THESE COUNTRIES EXPOSED TO OIL PRICES. THIS BIFURCATION IN ASIAN FX WILL GIVE YOU – GO INTO STRENGTH POSITIONS. THE FED AND THE BANK OF THAILAND, FIELD PRICES AND THERE WILL BE PRESSURES TO DO SOMETHING ABOUT IT.

39:32 ALSO INTERESTING FX MARKET AS THE AUSSIE, QE PRICE HAS BEEN IN A GOOD RISK-ADJUSTED TRADE ON THE UPSIDE. A GOOD LOOK TO SHORTEN THE TRADE. WE HAVE SEEN VOLATILITY INCREASE INTO POSITION. IT COULD BE A VERY INTERESTING POSITION IN TERMS OF THE ACTUAL TRAITS PUT ON THERE. IN TERMS OF THE COUNTRY, IT HAS BEEN GOING THROUGH A RENEWAL PHASE. THE AI TRADE IS DOING REALLY WELL. THE REST OF THE ECONOMY ISN’T. WE ARE SEEING SOME PUSHBACK ON DATA CENTER INVESTMENTS AS WELL.

40:07 ANY KIND OF MACRO COMMENTARY, ASIDE FROM THE RATE DECISION WILL BE SOMETHING TO ANTICIPATE. >> TALK ABOUT AI VERSUS NON-AI MARKETS, CHINA IS AN AR MARKET, BUT CHINESE MARKETS ARE MARCHING TO THE BEAT OF THEIR OWN DRUM. AT THIS POINT IT IS CONTINUING TO BE THE DOWNSIDE. DO YOU THINK ANY OF THE TAILWINDS ARE GOING TO MAKE AN IMPACT? >> WE ARE HEADING INTO THE CHINESE RESULTS. IT WILL BE INTERESTING BECAUSE THE CHINESE TECH ECOSYSTEM NEEDS TO PROVE THEY ARE EARNING ON THE SAME SCALE AS THE KOREANS AND THE TAIWANESE. SO FAR IT HAS NOT BEEN VERY

40:41 PROMISING. PRETTY MUCH FALLING OUT OF BED AFTER RESULTS OF THE LIKE OF CATTLE FOR EXAMPLE. THERE ARE MORE NAMES TO COME AND HOPEFULLY WE SEE THAT TURN. WE SEE IT IN CHINA’S FX VERSUS EQUITY MARKETS. IT KEEPS APPRECIATING AS CHINA TAKES THE POWER TO EXPORT DESPITE CURBS FROM THE RESTAURANT – WESTERN WORLD. IT IS IN THE EARNINGS THAT IT IS FALLING OVER. AND YOU SEE THAT SEPARATION BETWEEN TAIWAN AND CHINA

41:18 BLOWING OUT ON A PROFITABILITY MARGIN LEVEL. THE GUIDANCE FROM SK HYNIX AND THE REST OF IT IN THE U.S., THE ABILITY TO PASS THROUGH TO THE CHINESE ECOSYSTEM IS UP FOR DEBATE. >> ANTHONY STEPHENS, THANK YOU. AND LATER ON WE WILL BE SPEAKING TO THE GOVERNOR AFTER WHAT IS EXPECTED TO BE THE CENTRAL BANK’S 3RD STREET INTEREST RATE HIKE. THAT IS COMING UP ON INSIGHT WITH HASLINDA AMIN, 11:30 A.M. IN HONG KONG, AT 430 P.M. IN NEW ZEALAND. WITH MORE AHEAD, THIS IS BLOOMBERG.

42:05 >> LET’S CHECK IN ON HOW AUSTRALIAN ASSETS ARE TRADING. A BY ABOUT THREE QUARTERS OF 1% ON THE AFX. ALMOST EVERY SECTOR IN POSITIVE TERRITORY. THE TINY INFORMATION TECHNOLOGY SECTOR UP TO .5%. PRETTY BROAD-BASED RALLY ACROSS THE INDEX. LET’S SEE HOW IT LASTS WITH CPI NUMBERS COMING FOR THE MONTH OF SEPTEMBER. EXPECTING 4.2 PERCENT INCREASE, WELL NORTH OF THE RESERVE BANK OF AUSTRALIA.

42:38 THE RBA MEETING NEXT WEEK. ANTICIPATING ANOTHER RATE INCREASE. THE RBA GOVERNOR WILL BE APPEARING BEFORE SENATE COMMITTEE. A LOT OF COMMENTARY AROUND WHERE THE CASH RATE IS HEADED IN AUSTRALIA. PROBABLY NORTH IS THE SUMMARY. ROBERT KAPLAN SAYS THE FED CAN AFFORD TO WAIT ONE MORE MEETING BEFORE RAISING RATES. THE GOLDMAN SACHS VICE CHAIRMAN TOLD U.S. POLICYMAKERS IT SHOULD HOLD OFF ON HIKING AS THEY ASSESS AND INCREASE REALLY NEAT PICTURE OF

43:11 THE U.S. ECONOMY. >> THE ISSUE NOW, AND YOU HAVE HEARD ME TALK ABOUT THIS, IS PART OF THIS INFLATION BROADENING, HOW MUCH OF IT IS SUPPLY, HOW MUCH OF IT IS DEMAND, HOW MUCH IS CYCLICAL, HOW MUCH OF IT IS STRUCTURAL. WHAT IS CHALLENGING HERE WE TALK ABOUT AI, IT IS STRONG. DEFENSE-RELATED, VERY STRONG. HOUSING, AUTOS, LOW, MODERATE,

43:41 INCOME CONSUMERS, SLUGGISH. THERE IS A MORE MIXED ECONOMY THAN THE HEADLINES SUGGEST. THE OTHER PROBLEM IS IF YOU CAN UNDO THE DIESEL AND OIL SPIKE, THAT ONE THING, I THINK SOME OF THE BROADENING OF INFLATION IS BECAUSE OF THAT STRUCTURAL CHANGE, NOT BECAUSE OF EXCESS DEMAND. THERE’S NO RIGHT ANSWER ON THIS, BUT THAT IS THE DEBATE THEY ARE HAVING AND MAY BE ONE OF THE REASONS IF THEY SKIP

44:14 OCTOBER, THAT IS THE REASON THEY WOULD SKIP. NOT THAT THEY WILL NOT KEEP HIKING, BUT THEY WANT TO MAKE SURE THEY UNDERSTAND THESE CROSSCURRENTS. >> DON’T HAVE THE LUXURY OF TIME OF WAITING. >> I THINK THEY HAVE BELOW THREE OF WAITING ONE MEETING. I’VE TALKED ABOUT STRATEGIC ERRORS, TACTICAL ERROR. STRATEGIC ERROR IS A DELAY IN A WAY THAT TAKES A YEAR OR TWO. THAT IS PROBABLY TRUE OF WHAT HAPPENED IN 21 AND 20 TWO.

44:46 IF YOU ARE MEETING WITH, AND I THINK THEY DON’T WANT TO DO IS MAKE A MISTAKE WHERE THEY HIKED TOO FAR AND TOO FAST, AND WE LOOK UP NEXT YEAR BECAUSE DIESEL IS NOT RESOLVED, HAVEN’T MADE A DENT IN INFLATION, YOU HAVE SLOWED FURTHER SEGMENTS OF THE ECONOMY THAT WERE ALREADY SLUGGISH, AND MAYBE YOU ARE STRUGGLING WITH BOTH ENDS OF THE DUAL MANDATE. THAT IS THE BALANCING OF THE DEBATE THEY ARE HAVING.

45:17 >> CAN WE FINISH ON. DO YOU THINK IT IS ALIVE AND WELL? >> I DON’T KNOW. I CAN’T TELL EXACTLY. >> WHY DON’T YOU THINK THAT? >> I WILL SPEAK FOR MYSELF. IF I WALKED INTO THE OCTOBER MEETING AND IT WAS CLEAR THAT THE CHAIR WOULD LIKE TO RAISE RATES IN THIS MEETING, I WOULD NOT RESIST, I WOULD GO ALONG ETHIC. I PREFER TO SKIP OCTOBER FOR THE REASONS I JUST SAID. IF YOU KNOW YOU ARE GOING TO

45:48 RAISE IN DECEMBER, PEOPLE WOULD GO ALONG IN OCTOBER. BUT THERE WASN’T THIS STAGE MANAGEMENT TO SET IT UP. >> DO YOU THINK IT IS NECESSARY? >> IN AN ECONOMY THAT HAS LEVERAGED OVER 100% DEBT TO GDP AS OPPOSED TO THE GREENSPAN ECONOMY IN THE 1950’S, WHEN THE ECONOMY IS THIS HIGHLY LEVERAGED, I THINK A LITTLE BIT. YOU DON’T HAVE TO FORECAST WHAT YOU ARE GOING TO DO, BUT A BIT MORE STAGE MANAGEMENT, CLARITY ABOUT YOUR REACTION FROM HIM, AND GET A BIT OF THE PREMIUM

46:19 AND UNCERTAINTY OUT OF THE TREASURY MARKET IS VALUABLE WHEN WE ARE THIS HIGHLY LEVERAGED. IT IS A DIFFERENT ECONOMY THAN THE ONE ALAN GREENSPAN PRESIDED OVER. >> FORMER DALLAS FED PRESIDENT ROBERT KAPLAN IS SPEAKING TO BLOOMBERG. TAKE A LOOK AT WHAT WE ARE WATCHING MINUTES AWAY INTO THE START OF TRADING GOING INTO JAPAN. EXPECTING TO SEE A BOOST NOT JUST WHEN IT COMES TO THE BROADER POSITIVE CATALYST OVERNIGHT, THE AI BREAKING NEWS WHO HAD THAT IS ADDING MORE

46:50 SUPPORT TO THE QUESTIONS OVER THE AI CHIP RELATED TRADE, BUT SK HYNIX STRONGER THAN EXPECTED QUARTERLY PROFIT. ADDITIONAL SHAREHOLDER RETURNS WITH 100,000,000,000,001. THAT WILL BE SUPPORTIVE AS WE GET INTO THE START OF TRADING. THE MARKET OPENS IN A AND TOKYO ARE NEXT. THIS IS BLOOMBERG.

47:26 HAIDI: THIS IS THE ASIA TRADE, COUNTING DOWN TO ASIA’S MAJOR MARKET OPENS AND GETTING AN INJECTION OF POSITIVITY BACK INTO THE AI AND CHIP EDITION TRADE. THE ORCHESTRA TO GROUNDS OF CAPITAL RAISING WE HAVE SEEN AND A STRONG APPETITE EVEN AGAINST THE BACKDROP OF A RED DECISION. NOT EXPECTING BIG MOVES FOR POTENTIALLY THE TRAJECTORY FORWARD IS TIGHTENING. THE SK HYNIX NEWS IS THE CHERRY ON TOP. PAUL: IT CAME LATE.

48:00 WE WERE GETTING NERVOUS BUT DIDN’T DISAPPOINT. $83 TRILLION WON OPERATING PROFIT, $62 BILLION U.S. DOLLARS. SO THAT SHOULD GIVE US AN IMPRESSIVE TAILWIND. HAIDI: SOFTER THAN EXPECTED MOVES PREMARKET FOR SK HYNIX ITSELF. SO PERHAPS INVESTORS ARE PROVING TO BE MORE DIFFICULT TO PLEASE. BUT WE ARE COMING ONLINE PRETTY STRONG WHEN IT COMES TO JAPAN, NIKKEI 225 UP 0.7%. WHEN IT COMES TO JGB YIELDS IN

48:36 THE YEN, THE YEN NEARING 158 PER DOLLAR. JGB’S, A FIVE BASIS POINT MOVE IN THE LAST HALF AN HOUR. WE HAD THE DOLLAR MOVE AS WELL IN LIGHT OF POTENTIALLY A BIT OF INSURANCE MOVE AGAINST THE RATE DECISIONS WE ARE EXPECTING ACROSS THE G10. BEFORE THEN, THE RBNZ A LITTLE LATER TODAY. THE MAIN EVENT IN TERMS OF HIGH – HOW THESE HYNIX NUMBERS WILL IMPACT THE KOREAN MARKET, THE

49:11 KOREAN MARKET, HYNIX OFF SESSION HIGHS. SAMSUNG A STRONGER. CONVERSATION ABOUT WHICH ASPECTS WE COULD SEE WITH SAMSUNG PLAYING CATCH-UP IN SPECIFIC TIPS BUT THE SK HYNIX STORY HAS BEEN BROADLY POSITIVE. A SURGE IN QUARTERLY PROFIT. ADDITIONAL SHAREHOLDERS RETURNS OF 100 TRILLION WON. THERE ARE QUESTIONS ABOUT HOW THAT WILL PLAY OUT TO 2030. ANTHONY STEPHENS HAS MORE.

49:44 IN ADDITION TO THE U.S. AI FUNDRAISING STORY, WOULD YOU HAVE EXPECTED A STRONGER START FOR ASIA? ANTHONY: A STRONGER START FROM HYNIX IS CONCERNING TO THE MARKET, ON THE NET SIDE IT IS DISAPPOINTING. THEY SPEND MONEY ON THINGS OUTSIDE THE EXPECTATION, MAY BE IN THE CAPEX CATEGORY. THEY PLANNED A SIGNIFICANT BUILDOUT OF CAPACITY AND THAT IS POTENTIALLY WHY YOU ARE SEEING SAMSUNG OUTPERFORM. HYNIX VERSUS SAMSUNG IS COMMONLY

50:20 TRACKED AND WE GO INTO SOME SOME RESULTS WITH GUIDANCE AROUND THE INDUSTRY BUT POTENTIALLY SAMSUNG’S FOUNDRY BUSINESS, THIS IS WHAT WE WILL PROBABLY SEE IN THE REGION. . WE ARE SEEING A TREND THAT IS MORE BROAD-BASED THAN JUST THE MEMORY TRADE. THE U.S. HAD SOME POSITIVE INDICATIONS OF THE DIVERSITY OF AI SUPPLY CHAIN. GOOGLE, INTEL’S CPUS HAVE COME BACK INTO FOCUS AFTER ORACLE’S

50:51 DIVERSIFICATION MOVE. MORE LINES HITTING ON GOOGLE TP USE BEING BOUGHT BY OPENAI SO THERE IS DIVERSITY THAT IS COMING INTO MARKETS THAT PERHAPS TAKES THE SHINE OFF HYNIX. NOW THAT INVESTORS GET THE SHAREHOLDER RETURN, THEY KNOW WHAT THEY GET AS FAR AS CASH DIVIDEND AND SHARE BUYBACK AND OTHER POLICIES AS WELL. SO THE STORY IS PLAYING OUT BUT IN THE LONG RUN, IT IS ABOUT WHAT THE FOREIGNERS DECIDE TO DO IN KOREA TODAY. PAUL: AND TOMORROW AS WELL BECAUSE WE

51:23 WILL HEAR FROM SAMSUNG AS WELL. WHAT ARE WE ANTICIPATING? WHAT MARKET PASS-THROUGH MIGHT WE SEE FROM THESE HYNIX RESULTS? ANTHONY: IT IS A TWO PART QUESTION FOR SAMSUNG. HOW ARE THEY GOING ON THE FOUNDRY BUSINESS? TSMC HAS BEEN A LEVIATHAN ON THAT BUSINESS BUT SAMSUNG MADE SIGNIFICANT INROADS. THE CHAIRMAN WAS ON THE KOREAN PRESS RECENTLY TALKING ABOUT THE FOUNDRY BUSINESS BEING A

51:54 FOCUS. WE DO SEE THE U.S. ASKING FOR DIVERSIFICATION. THE TSMC RISK FACTOR MADE IT INTO THE ANTHROPIC AS ONE STATEMENT AS THE PROVIDER OF A CUTTING EDGE FOUNDRY BUSINESS. SO THAT WILL BE THE SAMSUNG FOCUS OUTSIDE THE MEMORY TRADE SINCE THE MEMORY TRADE HAS A STRONG UPDATE FROM HYNIX. IN TERMS OF THE READTHROUGH FROM HYNIX TO THE REST OF THE REGION, IT PUTS CHINA UNDER THE PUMP A LITTLE. THERE CONTINUES TO BE REPORTS CHINA IS STRUGGLING WITH MEMORY

52:27 SHORTAGES. IT HIGHLIGHTS HOW MUCH THE MEMORY DEMAND IS THERE FOR CHINA AI AND ELECTRONICS. CHINA HASN’T BEEN ABLE TO CATCH UP TO THE SAME EXTENT. IN THE MORE TRADITIONAL MEMORY NAMES, KEY ACTUALLY – KIOXIA AND OTHERS, IT WILL HELP THAT SENTIMENT. PEOPLE HAVE LOST SO MUCH MONEY SO QUICKLY IN THE MEMORY TRADE. SO THERE IS A LOT OF HELP –

52:58 HOPE REIGNITED BY THE FUNDAMENTAL STRENGTH OF THESE RESULTS. HAIDI: ANTHONY STEPHENS IN HONG KONG WITH THE LATEST. LET’S GET MORE IN TERMS OF THE SK HYNIX RESULTS PLAYING THROUGH THE BROADER OUTLOOK WITH AI TRADE. A CLIENT PORTFOLIO MANAGER AT AFFINITY INVESTMENT MANAGEMENT IS HERE. YOU HAVE REDUCED AI EXPOSURE FOR SOME TIME. I’M CURIOUS WHAT THAT LOOKS LIKE. HOW DO YOU PERCEIVE THE CYCLE AND THE LEVEL OF INVESTMENT AND

53:30 THE BUBBLE VERSUS FURTHER TO GO QUESTION? >> TO PUT IT IN PERSPECTIVE, WE HAVE A LOT OF AI EXPOSURE. WE STILL BELIEVE IN THAT TRADE. BUT OVER THE LAST FEW MONTHS WE CONSISTENTLY HAVE BEEN REDUCING AND DIVERSIFYING THE TRADE. WE HAVE EXPOSURE TO HYPERSCALERS LIKE MICROSOFT AND META. BUT WE HAVE BEEN ADDING THAT TO OTHER PARTS OF THE AI CYCLE.

54:03 AND TO A BROADER MARKET, WHERE WE STILL SEE A STRONG EARNINGS CYCLE COME THROUGH. IT HAS LARGELY BEEN ON TACK AND HYPERSCALERS, BUT IT HAS BEEN BROAD-BASED. THE ECONOMY IS STRONG. WE HAVE BEEN ADDING IN SOME SECTORS LIKE UTILITIES, WHICH MIGHT BE BORING BUT IT IS GOOD TO HAVE DEFENSE IN THE PORTFOLIO. THE RECENT RESULTS SEASON SHOWED US INDUSTRIALS ARE LOOKING VERY STRONG. THE BIG THING WE HAVE SEEN OVER

54:34 THE LAST FEW MONTHS, PARTICULARLY THIS REPORTING SEASON, THE UNDERLYING THINK IS STILL STRONG, TSMC, ALL OF THEM HAVE COME THROUGH WITH STRONG RESULTS. BUT THE QUESTION HAS MOVED FROM AI BEING FINANCED VERSUS AI THAT IS FUNDED. THE FINANCING PART HAS BEEN A BIGGER QUESTION. IT IS HEALTHY BECAUSE IT SUGGESTS IT IS NOT A BUBBLE IF YOU START TO GET A LOT OF

55:07 QUESTIONS AROUND VALUATIONS AND HOW FAR THE TRADE CAN GO. HAIDI: SOME OF THE QUESTIONS HAVE BEEN OVER DATA CENTERS. ARE YOU AVOIDING SOME OF THOSE TRADES? ELFREDA: FROM A DATA CENTER PERSPECTIVE WE DON’T NECESSARILY HAVE EXPOSURE TO COMPANIES BUILDING OUT DATA CENTERS. WHAT WE HAVE SEEN IN AUSTRALIA IS ENOUGH OF A WARNING SIGN THAT A LOT OF THOSE BUSINESSES REQUIRE HUGE AMOUNTS OF FINANCING AND IT HAS A LONG-TERM BEFORE YOU ARE IN THE

55:38 CASH FLOW BACK. WHAT WE HAVE ADDED ARE COMPANIES THAT SUPPLY INTERNET DATA CENTERS. IT IS STILL STRONG BUT WE HAVE FOCUSED ON AREAS WHERE THERE ARE SHORTAGES LIKE THE ELECTRIFICATION, THE GRID THAT GOES INTO POWER STATIONS FOR THOSE DATA CENTERS. IT IS MORE ABOUT COMPANIES RESPONSIBLE FOR THE POWER. ABB IS A SWISS-BASED ELECTRIFICATION, THEY DO

56:10 ELECTRIC EQUIPMENT AND SUPPLY THOSE DATA CENTERS. THEY HAVE BEEN ONE OF THE COMPANIES WITH THE STRONGEST RESULT, AND A REALLY GOOD ORDER BOOK. YOU CAN SEE THAT EARNINGS STILL COMING THROUGH. WE HAVE FOCUSED ON HAVING EXPOSURE TO THE TRADE BUT MORE SELECTIVELY INTO COMPANIES WHERE WE CAN REALLY SEE CERTAINTY ON THE OUTLOOK RATHER THAN A HUGE AMOUNT OF QUESTIONS AROUND CAPITAL SPEND. PAUL: YOU MENTIONED SOME OF THE QUESTIONS. IS IT FINANCED OR FUNDED?

56:43 HOW DO YOU SEE THE NARRATIVE PLAY OUT IN YIELDS? ELFREDA: IT BECOMES A TOUGHER QUESTION TO ANSWER IF YIELDS ARE A LOT HIGHER. WITH HIGH YIELDS AT THE MOMENT, IT IS IMPORTANT TO DIFFERENTIATE WHY. IS IT BECAUSE OF INFLATION STRESSES OR BECAUSE GROWTH IS STRONG? WHAT WE SEE IN THE U.S. IS THAT GROWTH IS PRETTY STRONG AND EARNINGS GROWTH IS PRETTY STRONG BUT I DO THINK THE

57:15 FINANCING OF THOSE DEALS AND THE LENGTH AND SIZE OF THE DEALS WERE RELATIVE TO BALANCE SHEET. THAT IS WHERE THE QUESTIONS COME IN. AND REALLY, WHAT IS THE IMPACT OF CORPORATE DATA VERSUS HYPERSCALER DEBT AND GOVERNMENT DEBT? IT IS THE SUPPLY HITTING THE MARKET THAT HAS PEOPLE SPOOKED BUT FOR US IT IS ABOUT FOCUSING ON COMPANIES WITH A STRONG CASH FLOW AND THAT IS ONE REASON WHY WE LIKE MICROSOFT. THEY COMMITTED TO BEING CASH FLOW POSITIVE. THAT IS WHAT WE LIKE TO SEE RATHER THAN NEO-CLOUDS DIVING

57:50 IN AND HAVING A HUGE AMOUNT OF DEBT RELATIVE TO WHERE THE REVENUES ARE. PAUL: I WANT YOUR VIEW ON THE NUMBER OF BIG CENTRAL BANK WE HAVE COMING UP. RBNZ EXPECTED TO TIGHTEN AND THE FED TOMORROW, MAYBE NOT. RBA NEXT WEEK, QUITE POSSIBLY. WHAT DO YOU SEE HAPPENING NEXT WEEK FOR AUSTRALIA? HOW MANY MORE RATE INCREASES COULD WE SEE? ELFREDA: GENERALLY SPEAKING, ALL ECONOMIC INDICATORS ARE

58:20 PROBABLY POINTING TO A CYCLE WHERE WE SHOULD EXPECT ANOTHER RATE HIKE IN THE NEAR FUTURE, PERHAPS MORE. THE OUTLOOK FOR THE AUSTRALIAN ECONOMY AND WHAT THAT MEANS FOR THE CONSUMER IS CONCERNING. WE HAVE BEEN UNDERWEIGHT, THE AUSTRALIAN CONSUMER AND THE HOUSING MARKET SPECIFICALLY, FOCUSING MORE ON THE DEFENSIVE SIDE, LIKE THE STAPLES AND I WOULD SAY PROBABLY MORE ON THE HEALTH CARE SIDE AS WELL.

58:52 SO IT IS OVERALL A RELATIVELY BENIGN CYCLE FOR INVESTORS IN AUSTRALIA. WE NEED TO SEE EARNINGS GROWTH, AND THAT WILL BE IMPORTANT GOING FORWARD. PAUL: GREAT TO SEE YOU AGAIN. THANKS FOR JOINING US. THE 300 BUSINESS GOVERNMENTS SEND INVESTMENT LEADERS ARE GATHERING IN HONG KONG FOR THE ONE OR SUMMIT FOCUSED ON FUNDING CLIMATE AND GREEN TECHNOLOGY.

59:27 DAVID INGLES IS THERE. >> WE END AND THE INTERSECTION BETWEEN THE TOPIC WE TALKED ABOUT EVERY DAY, AND YOU MARRY THAT WITH TWO IMPORTANT THEMES THAT RUN PARALLEL AND INTERSECT WITH IT. ONE IS THE ETHICS SIDE OF THINGS. THE OTHER IS THE ENERGY SUSTAINABILITY OF POWERING IN TERMS OF INFRASTRUCTURE AND GETTING US IN THEIR. AND THE GREEN ENERGY THAT NEEDS TO BE PUT IN PLACE. THE SUSTAINABILITY OF THE TECHNOLOGY RESTS ON THOSE. THOSE WILL BE EFFECTIVELY THE

1:00:01 MAIN THEMES THE SUMMIT HAS TODAY. TO HELP US UNDERSTAND, WE WILL HAVE A TON OF GUESTS AND SPEAKERS, GETTING US WARMED UP DECADE AND A HALF AT MICROSOFT AND THE FORMER PRESIDENT OF BAIDU. HE WILL BE DISCUSSING THE AI RESEARCH COMPONENT AS IT PERTAINS TO UPGRADING SKILL SETS ON THE UNIVERSITY LEVEL.

1:00:32 KEVIN WILL JOIN US TO DISCUSS WHAT HONG KONG IS DOING AS FAR AS THE R&D HUB STATUS. POMAN LO IS THE FOUNDER OF THE ONE EARTH SUMMIT AND ALSO REGAL HOTELS GROUP, HELPING US UNDERSTAND THOSE THINGS. BEFORE WE HAD TO THE BREAK I SHOULD MENTION THE HONG KONG CHEEK – IF EXECUTIVE IS EXPECTED TO SPEAK. MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪

1:01:46 PAUL: TAKE A LOOK AT THE FED MEETING. CRUDE PRICES CREEPING UP AGAIN. THERE WAS AN EXPERT TO DE-ESCALATE THE SITUATION BUT NOTHING CONCRETE. GOLD CATCHING A BIT AND THE U.S. TO YOUR CREEPING UP ALL WEEK. 4.73% IS THE YIELD AT THE MOMENT. IT NOT EXPECTING ANY CHANGE TO FED POLICY WEDNESDAY BUT WE WILL BE INTERESTED IN WHAT IS HAPPENING DOWN THE TRACK.

1:02:19 ISRAEL’S ELECTION IS LOOKING INCREASINGLY DEADLOCKED. EXIT POLLING SHOWS A TIE BETWEEN BLOCKS LED BY PRIME MINISTER NETANYAHU AND HIS RIVAL GOTTI EYES AND CAUGHT. LET’S BRING IN JILL DISIS. UPDATE US ON THE STATE OF PLAY. DOESN’T LOOK LIKE THERE IS A CLEAR PATH FORWARD FOR ANYONE. ASK NOT RIGHT NOW. WHAT YOU ARE LOOKING AT, THE SURPRISING BIT IS THE EROSION OF CONTROL AND POWER NETANYAHU

1:02:55 HAS HAD DATING BACK TO 2022. LOTS OF QUESTIONS ABOUT WHETHER HE CAN RETAIN THE PRIME MINISTER POSITION. HIS CHALLENGER GADI EISENKOT EDGED SLIGHTLY AHEAD BUT WHEN YOU LOOK AT THE ACTUAL NUMBERS, TALKING ABOUT THE DEADLOCK, THAT IS WHERE THIS COMES INTO PLAY. IT IS 120 SEAT PARLIAMENT. YOU NEED 61 SEATS FOR YOUR OWN PARTY OR AS PART OF A COALITION TO REGAIN CONTROL. WE HAVE SEEN A LITTLE BIT OF AN UPTICK FOR PARTIES ASSOCIATED WITH GADI EISENKOT WHERE THAT

1:03:27 WOULD FORM A COALITION WITH HIM. YOU ARE TALKING ABOUT ONE OR TWO SEATS AHEAD AND 10 OR SO SEATS THAT YOU WOULD PULL AHEAD AND TAKE CONTROL. WHAT YOU ARE LOOKING AT IS LIKELY A CONTINUED DEADLOCK. PERHAPS MORE NUMBERS TRICKLING OVER THE NEXT FEW HOURS, BUT IT POSES QUESTIONS ABOUT WHAT EXACTLY ISRAEL’S PARLIAMENTARY MAKEUP AND THE PRIME MINISTER POSITION WILL LOOK LIKE GOING FORWARD. HAIDI: THAT IS THE QUESTION. DEPENDING ON WHAT THE EVENTUAL

1:04:02 GOVERNMENT LOOK LIKE, THE ISRAELI ARAB MINORITY COULD BE THE KINGMAKERS. WHAT ARE THE INDICATORS FOR MORE POLICY? – FOR WAR POLICY? >> IF YOU LOOK AT, IF GADI EISENKOT GAINS THE PRIME MINISTER POSITION, HE IS SEEN AS MORE OF A MODERATE COMPARED TO YAHOO! OBVIOUSLY ALTHOUGH HE HAS EMPHASIZED BILLS IT – BUILDING IS REALLY SECURITY. WITH NETANYAHU, THE THING TO KEEP IN MIND IS NO MATTER WHAT

1:04:36 HAPPENS WITH THE ELECTION, IT IS UNLIKELY NETANYAHU WOULD NOT BE PRIME MINISTER AS THE U.S. IS LOOKING TO POTENTIALLY RESUME ITS BOMBING CAMPAIGN AGAINST IRAN. IF YOU ARE THE UNITED STATES AND YOU ARE LOOKING FOR AN ALLIED REGION THAT IS GOING TO ASSIST IN AN ESCALATING CONFLICT, THAT IS ONE THING YOU HAVE TO KEEP IN MIND. BEYOND THAT IS WHERE THE QUESTION RISES.

1:05:08 WHEN YOU LOOK AT THESE MEMBERS, EISENKOT’S OWN PARTY DOESN’T HAVE A MAJORITY WITHIN HIS OWN COALITION. SO YOU ARE TALKING ABOUT KINGMAKERS AND OTHER PARTIES THAT RAISES THE QUESTION OF WHAT A COALITION FOR EITHER SIDE LOOKS LIKE AND HOW EFFECTIVE THEY WOULD BE. HAIDI: JILL DISIS THERE AS WE WATCH WHAT IS INCREASINGLY LOOKING LIKE A DEADLOCK IN THE ISRAELI ELECTION. IN THE DEFEAT OF BRAZILIAN CANDIDATE BOLSONARO, HE FLED

1:05:39 HIS HOME COUNTRY AND IS ARRIVING IN THE U.S. IT WAS WELCOMED IN MIAMI BY HIS BROTHER. THE STATE DEPARTMENT CONFIRMED IT WOULD GRANT U.S. VISAS TO BOLSONARO AND HIS FAMILY. LET’S GO TO SAO PAULO. THE DRAMA OF THE ELECTION IS STILL BEING DIGESTED BY MOST OF US BUT THERE IS NO – MORE DRAMA. WHAT DO WE KNOW ABOUT BOLSONARO FLEEING THE COUNTRY? >> I THINK DRAMA IS A GOOD WAY TO PUT IT.

1:06:13 WE STARTED THE DAY IN BRAZIL, IT IS TUESDAY, THINKING WE WOULD TALK ABOUT THE NEXT GOVERNMENT. MONDAY NIGHT HERE, BOLSONARO’S PARTY CONCEDED THE RESULT. THEY ACCEPTED THE RESULT AS EVERY OTHER PARTY IN BRAZIL, AS THE HEAD OF THE ELECTORAL COURT AND THE HEAD OF THE SENATE AND THE LOWER HOUSE DID. THERE IS NO DOUBT ABOUT THE RESULT SO FAR. AND OF COURSE, WE START GETTING REPORTS THAT BOLSONARO MAY HAVE FLED TO ARGENTINA AND FROM

1:06:45 THERE HE WAS EXPECTED TO TAKE A PRIVATE JET TO THE U.S. WE HEARD FROM AUTHORITIES IN ARGENTINA, FROM THE PRESS SECRETARY FROM THE GOVERNMENT SAYING HE NEVER ENTERED ARGENTINA. WHAT WE KNOW RIGHT NOW IS THAT WHAT YOU MENTIONED, IT HAS BEEN REPORTED BY A MAJOR NEWSPAPER IN BRAZIL THAT HE ARRIVED IN MIAMI AND MET HIS BROTHER AND HIS FAMILY IN MIAMI. BOLSONARO SUPPOSEDLY FLED WITH HIS WIFE AND DAUGHTERS.

1:07:16 WE DON’T KNOW THE DETAILS. WE DON’T KNOW, THERE HAS BEEN NO CONFIRMATION BY HIS LAWYER. ALL OF THEM SAID THEY DIDN’T KNOW WHERE HE WAS. WHAT WE HEARD IN D.C. FROM OUR TEAM OF REPORTERS IS THE U.S. WAS WILLING TO GRANT BOLSONARO AND HIS FAMILY A VISA. WHAT TYPE OF VISA WE DON’T KNOW. WHAT THE DETAILS ARE WE DON’T KNOW. THERE HAVE BEEN REPORTS IN THE BRAZILIAN MEDIA SAYING THE BROTHER WHO LIVES IN THE U.S.

1:07:48 WAS ACTUALLY THE ONE ARRANGING ALL OF THIS. SO WE HAVE A LOT OF QUESTIONS. BUT A LOT OF DRAMA. PAUL: OH IS THE HISTORY THE BOLSONARO FAMILY HAS WITH PRESIDENT TRUMP AND THE U.S. CAN YOU FILL US IN ON THAT? >> THAT IS IMPORTANT TO PUT INTO CONTEXT. IF WE LOOK AT THE FATHER OF BOLSONARO, IT WAS THE PRESIDENT

1:08:21 OF BRAZIL UNTIL 2022 WHEN HE LOST AN ELECTION TO PRESIDENT LULA THAT WAS JUST REELECTED. AFTER THE FATHER LOST THE ELECTION, HE ALSO FLED TO THE U.S. AND SPENT A FEW MONTHS THERE. ALL OF THIS HAPPENED SEVERAL YEARS AGO. JOE YOUR BOLSONARO FLEW BACK TO BRAZIL AND HERE HE WAS FORBIDDEN TO RUN FOR ELECTION FOR EIGHT YEARS FOR QUESTIONING THE SYSTEM AND THEN HE WAS CONVICTED OF ATTEMPTING A COUP. RIGHT NOW THE FATHER IS UNDER

1:08:57 HOUSE ARREST. YESTERDAY, MONDAY IN BRAZIL, FLAVIO VISITED HIS FATHER AND SAID HE WOULDN’T FLEE BRAZIL. AFTER THAT WE HAD THE SUPREME COURT ISSUING A REQUEST FOR FLAVIO TO TURN IN HIS PASSPORT BECAUSE THERE WAS ALLEGATIONS HE COULD TRY TO FLEE THE COUNTRY. FLAVIO AS TWO PASSPORTS, ONE IS DIPLOMATIC BECAUSE HE IS A SENATOR AND THE OTHER IS A NORMAL ONE ISSUED BY BRAZIL’S AUTHORITIES. HE NEVER TURNED IN THE PASSPORTS. HE WAS SUPPOSED TO TURN THEM IN

1:09:28 BY TODAY. THIS NEVER HAPPENED. SO WE ARE TRYING TO FIGURE OUT THE PLOT BEHIND ALL OF THIS. IT’S NOT VERY SURPRISING TO SEE THAT HE WENT TO THE U.S., WHERE HIS BROTHER HAS LIVED SINCE LAST YEAR. HAIDI: OUR BRAZIL CHIEF IN SAO PAULO. A LOT TO BREAK DOWN. IN THE MEANTIME, AUSSIE ASSETS, WE ARE HEARING IN TESTIMONY

1:09:59 FROM THE RBA GOVERNOR AT THE MOMENT. THIS AS WE HEAD INTO IMPACT ON THE MELBOURNE CUP DAY COME RBA DECISION HAS HEIGHTENED EXPECTATIONS WE WILL SEE A FIFTH HIKE FOR THIS YEAR. MICHELLE WAS TALKING ABOUT THE CENTRAL BANK WILL DISCUSS IF TIGHTENING HAS BEEN SUFFICIENT IN TERMS OF THE DISCUSSION PLANNED FOR NEXT WEEK’S MEETING, ALSO MONETARY POLICY IS THAT TIGHTENING HOUSING PRICES. ONE OF THE COUNTERBALANCE IS PERCEIVED AS JUST HOW MUCH THE HOUSING PRICE DOWNTURN IS GOING TO POTENTIALLY BUILD INTO HOUSEHOLD WEALTH AND AFFECT

1:10:31 CONSUMER SENTIMENT. TALKING ABOUT HOW BUSINESS INVESTMENT PICKED UP DESPITE THE HOUSING MARKET SOFTENING, HOUSEHOLD SPENDING MODERATING BUT THE FULL EFFECT OF RATE HIKES HASN’T HAPPENED. THE AUSSIE DOLLAR EDGING HIGHER AS WELL AS BOND YIELDS. ALSO TALKING ABOUT THE DOMESTIC CAPACITY PRESSURES PRESSURING PRICES. IN TERMS OF CAPACITY WE ARE CLOSE TO FILL CAPACITY IN AUSTRALIA SO THAT WILL WIND UP

1:11:02 WITH DEMAND OUTSTRIPPING SUPPLY. THE LABOR UNDER THAN WHAT WAS PREVIOUS, NOT JUST GLOBAL ENERGY PRESSURES DRIVING INFLATION. THE AI BOOM AND THE WEATHER PUTTING PRESSURE ON PRICES AS WELL. MORE HERE ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪

1:11:39 >> LET’S GET YOU BACK TO ISRAEL, UPDATE YOU ON THE ELECTION THERE. EXIT POLLS SEE A DEADLOCK AT THE MOMENT. ALTHOUGH CHANNEL 12, INITIALLY SEEING A BLOCK IS NOW SEEING BENJAMIN NETANYAHU’S GROUP GETTING 52 SEATS. THE DISTILLED – THIS IS STILL AN EVOLVING SITUATION. CLOSELY WATCHING THE EXIT POLLS IN ISRAEL. WE WILL UPDATE YOU AS WE GET MORE INFORMATION.

1:12:10 WE WILL UPDATE YOU ON THE ASIAN TRADE. THIS IS BLOOMBERG. ♪ PAUL: BREAKING NEWS OUT OF AUSTRALIA. CPI NUMBERS FOR THE MONTH OF SEPTEMBER. CLOSELY WATCHED AND THEY ARE COMING IN HOTTER THAN EXPECTED. CPI NEAR FOUR POINT 3%. THE EXPECTATION WAS 4.2%. THE RBA’S PREFERRED MEASUREMENT DID COME IN LINE. 3.6% ON YEAR.

1:12:44 MODEST PICKUP IN THE AUSSIE DOLLAR AT THE MOMENT TO 0.75. YOU’VE HEARD FROM THE RBA GOVERNOR AS WELL, GIVING SEMIANNUAL TESTIMONY TO SENATE AT THE MOMENT. SHE’S BEEN WEIGHING IN ON WHETHER OR NOT MORE TYPING IS NEEDED. SHE SAYS THAT’S UP FOR DISCUSSION BUT HAS NOTED THAT INFLATION IS STILL STRONG AND WELL OUTSIDE THE RBA TARGET BAND. CPI NUMBERS FOR SEPTEMBER REINFORCING THAT POINT. 4.3% FOR THE MONTH OF SEPTEMBER.

1:13:19 THAT WAS MORE THAN EXPECTED. HOTTER AND WELL OUTSIDE THE TARGET. >> PARTICULARLY ON THE SHORT END OF THE BOND MARKET. LONG-TERM NEGATIVE SIGNAL FROM A MORE HAWKISH RBA. THE MOVE IN THE DOLLAR SEEING UPSIDE WHEN IT COMES TO AUSSIE EQUITIES AS WELL. I.T. IN US TRILLION UP BY 2.5% AT THIS POINT. IN TERMS OF THE REST OF TRADING, MORE RESILIENCE WHEN IT COMES TO THE KOREAN MARKETS WHICH HAS BEEN TENTATIVE.

1:13:52 TENTATIVE COMPARATIVELY TO WHAT WE SEE FROM SK HYNIX. THAT STOCK COULD MAYBE BE STRONGER, GIVEN THAT WE HAD A SIZABLE PROFIT BEAT BOOSTING THE BROADER CONFIDENCE IN THE AI TRADE. JAPAN UP BY OVER 1%. NASDAQ FUTURES ALSO UNCHANGED TO POSITIVE. WE ARE RIDING THE TECH BOUNCE. LOOKING FORWARD TO MORE ONCE TAIWAN COMES ONLINE. LET’S START OFF WITH THE GOOD IN TERMS OF TAIWAN. THAT’S MORE OF A KNOWN SITUATION THERE, RIGHT?

1:14:27 >> YEAH. TAIWAN CONTINUES TO BENEFIT FROM DIVERSIFICATION OF AMERICAN AI SUPPLY CHAIN. IT’S NOT JUST AN NVIDIA STORY. NVIDIA HAS BEEN GREAT FOR TAIWAN. THEY’VE WRITTEN THE WAVE ALL THE WAY AND UNDERSTAND THE BENEFIT AS THE LIKES OF ORACLE AND OPENAI LOOK TO DIVERSIFY AWAY FROM NVIDIA AS DEPENDENTS. WE SEE GOOGLE GPU TAKE OFF A LITTLE BIT. REALLY STRONG DAY YESTERDAY, UP 10%.

1:15:00 WHAT’S IN COMMON IS THAT THEY NEED A LOT MORE PRINTED CIRCUIT BOARDS. THEY NEED MORE SUBSTRATES AND CHIP DESIGN TO INTEGRATE THIS STUFF TOGETHER. THAT’S EXACTLY WHAT TAIWAN IS SAID TO DO. THAT KIND OF DYNAMIC GOES REALLY WELL FOR TAIWAN IN TERMS OF DIVERSIFIED UPDATE. TAIWAN TRADING 2%. SOME VERY STRONG COMMENTS ALSO FROM ANTHROPIC ON THEIR DEPENDENTS ON TSMC. THEY WERE NOT SHY ABOUT IT.

1:15:32 THEY SAID THAT IF SOMETHING HAPPENS TO TAIWAN, THEY WOULD HAVE A BIG PROBLEM. THAT’S EPIC. FOR TAIWAN, THINGS ARE SET UP WELL. ONE HEADACHE IS THE FX. IT CONTINUES TO WEAKEN UNDER THE WEIGHT OF VOLUME TRIMMING. THE CENTRAL BANK IS BUSY THERE. THAT IS A LEGITIMATE KIND OF MANAGEMENT OF THE FX WITHIN A WIDEBAND. HAIDI: WE ARE GETTING MORE NEWS WHEN IT COMES TO THE OTHER CATALYST OF THE TRADE.

1:16:04 ANTHROPIC SAID TO HAVE PICKED J.P. MORGAN TO LEAD THE U.S. RETAIL OFFER IN THE U.S.. WE ARE HEARING THAT THEY ARE SET FOR INSTITUTIONAL RETAIL OFFER, 15 TO 20% OF THE IPO TO THE RETAIL COMPONENT. WE ARE GETTING MORE DETAILS AFTER THE FILING TOLD US A LOT BUT LEFT A LOT OF GAPS IN TERMS OF THE BROADER BUSINESS. WE ARE EXPECTING AN AMENDED FILING IN THE COMING DAYS AS WELL. THAT WILL GIVE US MORE DETAIL ON THE FINANCIALS AND THE SPENDING COMMITMENTS AND SO ON. THIS IS GOING TO BE ONE OF THE

1:16:37 BIGGEST DRIVERS AS WE GO INTO THE NEXT FEW WEEKS. >> OF COURSE. YOU HAVE RETAIL THAT NEEDS TO PARTICIPATE STRONGLY. YOU HAVE ALL OF THESE CRYPTO INSTRUMENTS WHERE PEOPLE CAN BAD – BET ON THAT. THOSE ARE DOING REASONABLY WELL IN TERMS OF THE BUSINESS CONDUCTOR AND THEY ARE TRADING HIGHER THAN WHEN THEY LISTED. THERE’S A LOT OF MOVING PARTS TO THIS IPO.

1:17:09 IT’S VERY INTERESTING THAT RETAIL HAS GOTTEN SO ENGAGED IN LEVERAGED ETF’S ON THE TECH FRONT. THERE’S PLENTY OF RISK APPETITE FROM THE RETAIL SEGMENT INTO ANTHROPIC IPO. IN TERMS OF THE CAPITAL MARKETS, YOU CAN SEE THE DEPTH OF THE U.S. CAPITAL MARKETS ACROSS THE STRUCTURE. WHETHER WE ARE TALKING ABOUT DEBT, PRIVATE EQUITY, CIRCULAR FINANCING, AND IPO. PAUL: ALL RIGHT. ANTHONY STEPHENS THERE. 300 BUSINESS, GOVERNMENT, INVESTMENT LEADERS ARE GATHERING IN HONG KONG FOR THE

1:17:45 ONE EARTH SUMMIT, FOCUSED ON FUNDING CLIMATE AND GREEN TECHNOLOGY. LET’S GET BACK TO DAVID ON PLACE WITH OUR NEXT GUEST. DAVID: YEAH. GOOD MORNING. THANK YOU FOR HAVING ME ON YOUR SHOW. ME AND THE NEXT CAST – GUEST WERE CHATTING FOR THE LAST 20 MINUTES. JOINING ME ON SET IS THE CHAIR PROFESSOR AND FOUNDING DEAN OF THE INSTITUTE FOR AI INDUSTRY RESEARCH. SOME OF YOU MIGHT KNOW HIM AS THE FORMER PRESIDENT OF BAIDU. BEFORE THAT, HE SPENT MANY YEARS AS HEAD OF MICROSOFT IN THE REGION.

1:18:17 GOOD TO SEE YOU WENT GOOD MORNING. >> HAPPY TO BE HERE. DAVID: I HOPE THERE WOULD BE A MICROPHONE TO CAPTURE EVERYTHING THAT WE TALKED ABOUT. WE WOULD BE IN A BETTER POSITION TO UNDERSTAND THE COMPLEXITY OF THIS. TO THE BENEFIT OF VIEWERS WHO MIGHT NOT BE FAMILIAR, WHAT EXACTLY DO YOU DO? WHAT IS YOUR RELATIONSHIP WITH CORPORATE’S? >> THE AI INDUSTRY RESEARCH IS AN INSTITUTE I ESTABLISHED ABOUT 6.5 YEARS AGO. THE GOAL IS VERY SIMPLE.

1:18:51 TWO ADVANCE SOCIETY AND INDUSTRY WITH AI. WE WORK WITH INDUSTRIES IN DEFENSE ROBOTICS, AI MEDICINE. BASICALLY PHYSICAL AI AND BIOLOGICAL AI. VERY UNIQUE. THE PROJECT ESSENTIALLY FUNDED BY COMPANIES, GLOBAL COMPANIES, CHINESE COMPANIES. WE HAVE 27 FULL-TIME FACULTY’S. MOST OF THAT HAS INDUSTRY EXPERIENCES. HEADS OF LABS FOR LARGE

1:19:24 COMPANIES IN THE PAST. 400 TOP-NOTCH STUDENTS, MOSTLY PHD STUDENTS. THE MODEL HERE IS ALL OF OUR PROJECTS ARE SUPPORTED, SPONSORED BY COMPANIES. SO THE WORK WE DO, A LOT OF THOSE ARE RESEARCH. THEY SOLVE REAL PROBLEMS. WITH AI, IT’S IMPORTANT TO LOOK AT REAL DATA, REAL SCENARIOS. ALSO TO BE ABLE TO BUILD

1:19:55 TECHNOLOGY AT SCALE. YOU NEED TO HAVE GPU’S. YOU NEED TO HAVE DATA CENTERS. YOU NEED TO HAVE A LARGE VOLUME OF DATA. TO DO THAT IS TO WORK WITH THE INDUSTRY FROM THE VERY BEGINNING. DAVID: HOW MUCH OF THE INNOVATION THAT YOU SEE IN THE MEDIA, THAT WE REPORT ON, ACTUALLY COMES FROM WHAT YOU GUYS DO? I THINK OF YOU GUYS AS THE KITCHEN BEFORE IT IS BROUGHT OUT TO THE PUBLIC.

1:20:27 >> FIRST AND FOREMOST, THE GOAL IS TO PRODUCE THE NEXT GENERATION OF TECHNOLOGY LEADERS. BECOME VALUABLE AND RELEVANT TO INDUSTRY. WE ALSO OF COURSE DEVELOP FOUNDATIONAL TECHNOLOGIES. SOME OF THE TECHNOLOGY WE DEVELOP FOR EXAMPLE, REINFORCEMENT LEARNING. USED AROUND ALL THE MAJOR MODELS IN CHINA AND THE U.S.. WE ALSO CREATED SOME OF THE FOUNDATIONAL TECHNOLOGIES FOR A

1:20:59 TON OF STRIVING AND ALSO FOR ATTRACTIVE ELEMENTS. SO THAT IS SUPER EXCITING. RIGHT NOW, IT’S VERY HARD TO DIFFERENTIATE BETWEEN THE BASIC RESEARCH, ENGINEERING, AND THE PRODUCTS. IT’S IMPORTANT FOR OUR TECHNOLOGISTS AND RESEARCHERS TO WORK WITH THE COMPANIES THAT THEY WANT TO BUILD THE THINGS. I’M VERY HAPPY TO SEE OUT OF THIS TECHNOLOGY, ALREADY BEING USED BY TECHNOLOGY. DAVID:

1:21:35 NOW WHERE YOU ARE, AI ETHICS AND INJECTING ETHICS INTO THIS TECHNOLOGY IS THE MAIN POINT OF TOPIC, THE MAIN CONVERSATION RECENTLY. HOW DO WE DO IT? HOW DO YOU THINK ABOUT IT? DO WE NEED REGULATION? IS THIS A SELF-REGULATORY MISSION IN YOUR FIELD? ZHANG: AI IS THE TRANSFORMATIVE TECHNOLOGY OF OUR TIME. WE HAVE A GREAT OPPORTUNITY TO DO GOOD WITH AI BUT ALSO THERE’S A REAL DANGER TO GO OFF RAIL.

1:22:08 I THINK THE GOVERNANCE AND THE COMPLIANCE IS CRITICAL. IT’S IMPORTANT TO HAVE THOSE GUARDRAILS. COMPANIES NEED TO DO THAT. IT’S NOT ENOUGH. IT’S A NECESSITY BUT NOT SUFFICIENT. IT’S IMPORTANT FOR GOVERNMENT, NGOS TO COME TOGETHER. IT’S IMPORTANT FOR CHINA TO YOUR – FOR CHINA U.S. TO WORK ON THIS TOGETHER. NO COUNTRY CAN DO THIS ALONE.

1:22:41 DAVID: ON THE COMPETITIVE LANDSCAPE, IS IT HEALTHY COMPETITION YOU SEE BETWEEN U.S. AND CHINA? SEPARATE BUT RELATED QUESTION TO THAT, ON THE MODEL FRONT, THE VERY FRONTIER OF THE ABILITY RIGHT NOW, DO YOU SEE CHINESE LABS BEING ABLE TO COME UP WITH SOMETHING AT PARITY OR ARE WE ALREADY AT PARITY THERE? >> RIGHT NOW, CHINA IS MOSTLY ADVOCATING FOR OPEN-SOURCE MODEL.

1:23:13 IF YOU LOOK AT THE PERFORMANCE, STANFORD FOR EXAMPLE, WE THINK 5% IN PARITY WITH THE FRONTIER MODELS. BUT WITH TWO ORDERS OF MAGNITUDE THAT WERE MORE EFFICIENT. THERE’S A COMPETITION BETWEEN COMPANIES, COLLABORATION WITH DIFFERENT COMPANIES. IT’S OK. IT’S HEALTHY. I THINK THE MOST IMPORTANT THING IS TO MAKE SURE THAT THERE’S A COMMUNICATION. COMPANIES DO COMPETE.

1:23:47 U.S. COMPANIES COMPETE WITH EACH OTHER. CHINESE COMPANIES COMPETE WITH EACH OTHER. THAT’S ALL FINE. I WOULD SAY THAT OPEN MODELS ARE CRITICAL FOR DEMOCRATIZED AI AROUND THE WORLD. WHEN I TRAVEL AROUND THE WORLD IN SOUTHEAST ASIA AND OPEN-SOURCE HAS AN IMPORTANT ROLE. DAVID: LAST QUESTION. ARE WE OVER AFTER MY STAYING – OVERESTIMATING AI? WHAT ARE YOUR THOUGHTS? >> WE ARE UNDERESTIMATING THE POWER OF AI IN THE SHORT-TERM

1:24:22 AND LONG-TERM. I WOULDN’T BE ABLE TO KNOW WHAT’S GOING TO HAPPEN IN SIX MONTHS. THE KIND OF IMPACT IT CREATES. IT IS SUPER EXCITING. DAVID: YOU WORK WITH THE SMARTEST STUDENTS IN THE WORLD. IT’S FASCINATING. WE WILL BE HERE WITH THE RIDE – FOR THE RIDE. HERE WITH THE FOUNDING DEAN OF THE INSTITUTE FOR AI INDUSTRY RESEARCH. HAIDI: GREAT CHAT.

1:24:57 DAVID ON PLACE IN HONG KONG WHERE AT THE ONE EARTH SUMMIT. WE GET MORE FROM THE SUMMIT THROUGHOUT THE DAY. WE WILL BE SPEAKING WITH THE SECRETARY FOR TECHNOLOGY ABOUT TURNING CLIMATE AMBITION INTO INVESTMENT AND ACTION. MORE AHEAD ON THE ASIAN TRADE. THIS IS BLOOMBERG.

1:25:59 PAUL: RBNZ EXPECTED TO RAISE THE OFFICIAL CASH TRADE – RATE TODAY, A THIRD STRAIGHT INCREASE AS INFLATION RISKS REMAIN. LET’S BRING IN GARFIELD REYNOLDS NOW. PRETTY MUCH NAILED ON TODAY. BUT WHERE TO FROM HERE? HOW MANY MORE INCREASES COULD WE SEE? GARFIELD: THAT’S THE BIG QUESTION INVESTORS WILL BE ASKING. THEY ARE CERTAIN THAT THE RBNZ WILL HIKE. THE THINGS THAT ARE DRIVING IT TO HIKE, A LOT OF THAT IS

1:26:30 REALLY EXTERNALLY DRIVEN. BUT THEY HAVE TO USE THE TOOLS AT THEIR DISPOSAL WHICH ARE AIMED AT THE DOMESTIC ECONOMY. IF YOU HAVE ENERGY PRICE IN PARTICULAR HELPING TO DRIVE UP INFLATION AND INFLATION EXPECTATIONS, THE CENTRAL BANK CAN’T STOP ENERGY PRICES RISING. THEY CAN TAKE THEIR WAY INTO A GREATER FUEL SUPPLY. WHAT THEY CAN DO IS RESTRAIN DOMESTIC DEMAND IN ORDER TO HELP TO BRING PRICES UNDER

1:27:04 CONTROL OVER THE WHOLE OF THE ECONOMY. IT’S EASY. EASY TO GET LOST IN THE DAY TODAY. OIL PRICES ARE DOWN THIS WEEK. THEY ARE SIGNIFICANTLY HIGHER, CRUDE PRICES AND FUEL PRICES EVEN MORE SIGNIFICANTLY HIGHER THAN THEY WERE THE LAST TIME THE RBNZ MET. SO WITH THAT GOING ON, TODAY SIGNALED THAT THEY ARE GOING TO DO ANOTHER THREE HIKES IN THE COMING YEARS OR ANOTHER TO HIKES AFTER THIS ONE WHICH I THINK IS MORE THE CONSENSUS AT

1:27:35 THE MOMENT. IT’S ALSO A CONCERN FOR THE RBNZ THAT IF THEY ARE SEEN TO SOFTEN AT ALL, THE KIWI DOLLAR COULD LOSE ITS MOJO. THAT IN ITSELF HELPS TO REVIVE INFLATION. I THINK THEY ARE MORE LIKELY TO AIR ON THE SIDE OF SOUNDING HAWKISH. HAIDI: FED CHAIR WARSH HAS SOME MENTAL GYMNASTICS TO WORK THROUGH TO CONVINCE INVESTORS WHY HAVING VOTED UNANIMOUSLY TO HIKE THEY PROBABLY AREN’T GOING TO THIS

1:28:06 WEEK. BUT THEY MAY. >> WELL I MEAN, ALL CENTRAL BANKERS HAVE A CONUNDRUM GOING ON. ONE OF THE THINGS THAT HAS BEEN CITED BY WARSH IN PARTICULAR IS THE RUN-UP IN BOND YIELDS. THOSE ARE STILL QUITE ELEVATED EVEN AFTER THEY CAME DOWN A BIT. WE ARE SEEING U.S. HOME SALES SAG BECAUSE MORTGAGE RATES HAVE GONE UP.

1:28:38 SO THAT’S A TIGHTENING OF CONDITIONS IN THE REAL ECONOMY. THAT’S GOING ON WITH OR WITHOUT FED HIKES. SO HE COULD POINT TO THOSE SORT OF THINGS WHICH HE HAS BEFORE. HE’S ALSO VERY MUCH CONVINCED THAT THE ULTIMATE IMPACT OF AI WILL BE DEFLATIONARY RATHER THAN REFLATIONARY. THAT THE PRODUCTIVITY GAMES WILL END UP MEANING YOU GET STRONG GROWTH THAT ISN’T INFLATIONARY. THOSE ARE THE SORT OF THINGS THAT HE’S GOING TO LEAN ON. THE RISKS GOING IN TO THE FED IS HOW CONVINCING HE CAN SOUND.

1:29:12 WHEN HE SAYS THAT. ALSO HOW MUCH DISSENT WE GET. WHAT DOES IT SOUND LIKE FOR THE REST OF THE FOMC? WHEN THEY DID HIKE LAST TIME AROUND, WARSH HAD TO GO WITH THE FLOW. HE COULDN’T REALLY SAY NO. SO THERE’S THAT. THE OTHER CONCERN WITH THE FED IS AGAIN THAT WARSH MISSED NO GUIDANCE. SO HAVING PRESUMABLY SAT ON THEIR HANDS AND NOT HIKED IN

1:29:49 OCTOBER, HE MAY WELL SAY, I CAN’T SAY WHAT WE ARE GOING TO DO IN DECEMBER EVEN THOUGH WE REMAIN CONCERNED ABOUT INFLATION. HAIDI: GARFIELD REYNOLDS. WE WILL BE SPEAKING WITH THE RBNZ GOVERNOR LATER TODAY, AFTER THE CENTRAL BANKS THIRD STRAIGHT INTEREST-RATE HEIGHT – HIKE. 4:30 P.M. IF YOU ARE WATCHING IN NEW ZEALAND. MORE AHEAD ON THE ASIAN TRADE. THIS IS BLOOMBERG. ♪

1:30:31 HAIDI: SOME OF THE TOP CORPORATE STIRRINGS – STORIES TODAY. BOEING EXPECTS FEWER DELIVERIES IN THE TARGET OF 500. REMINDERS ARE SET FOR THE LOW END OF THE FORECAST. THE COMMERCIAL AIRPLANE DIVISION POSTED IN ALMOST $700 MILLION LOSS. MET US $25 BILLION SHARES DIRECTED DEMAND FOR FIVE TIMES THE AVAILABLE SHARES. MORE THAN HALF OF THE SHARES

1:31:02 WERE ALLOCATED TO LONG ONLY AND EXISTING INVESTORS. THE SALE IS PART OF META’S PLANNED EQUITY FINANCING PUSH TO FUND AI INFRASTRUCTURE AND DEVELOPMENT. HIGH-GRADE BONDS WORTH $21 BILLION AS PART OF BROADCOM’S PLAN TO FINANCE SHIPS FOR ANTHROPIC. BANK OF AMERICA, CITIGROUP, AND MORGAN STANLEY HELPED ARRANGE THE DEAL. OTHER BANKS EXPECTED TO JOIN IN THE COMING DAYS. PAUL:

1:31:35 GEO SHARES ABOVE THEIR PRICING, POINTING TO A STRONG TRADING DAY. IT FOLLOWS INDIA’S BIGGEST EVER IPO. TELL US, WHAT CAN WE EXPECT FROM TODAY? >> AS YOU SAID, THE SIGNS ARE ACTUALLY GOOD. PREMIUM HAS HELD THAT ABOUT 22% ABOVE IPO PRICE FOR THE PAST 10 DAYS WHICH IS QUITE UNUSUAL FOR LARGE INDIAN IPOS. GENERALLY, THE CLOSER YOU GET TO THE LISTING, THE MARKET

1:32:06 TENDS TO SHRINK A LOT. THAT’S WHAT WE SAW HAPPEN WITH NATIONAL STOCK EXCHANGE LAST MONTH. THE SIGNS ARE POSITIVE. DEMAND WAS REALLY STRONG FOR THIS IPO. 20 TIME – 22 TIMES COVERED. THEY SUBSCRIBE FOR 71 TIMES. RETAIL INVESTORS SUBSCRIBED FOR 2.7 TIMES THE SHARES INITIALLY MADE AVAILABLE TO THEM. IT WAS DEFINITELY A STRONG

1:32:37 SHOWING FOR THE IPO. WHILST MARKET TRADING IS INTO GUARANTY AS TO HOW IT WILL TRADE TODAY, IT IS CERTAINLY A POSITIVE SIGN, ESPECIALLY GIVEN THAT THE TRACK RECORD FOR LARGE INDIAN IPOS IS NOT GOOD ON THEIR FIRST DAYS. LAST MONTH WAS AN EXCEPTION. OTHERWISE, MOST OF THEM ALL DROPPED ON THEIR FIRST DAY. HAIDI: WHAT’S REALLY INTERESTING, THEY HAVE REWRITTEN RECORDS IN TERMS

1:33:08 OF A LOT OF THIS HEADING INTO TODAY. TELL US MORE IN TERMS OF HOW THIS ALL CAME ABOUT. >> YES. IT IS STILL A RECORD IPO DESPITE HAVING TO TRIM ITS VALUATION EXPECTATIONS. IF WE GO BACK ABOUT A YEAR AGO, PEOPLE WERE PUTTING THE VALUATION AROUND 130 TO $170 BILLION EVEN. NOW THE IPO VALUED AT 107 MILLION DOLLARS. THAT’S AT A SLIGHT DISCOUNT TO ITS COMPETITOR. THERE HAD BEEN AMBITIONS

1:33:41 INITIALLY TO PRICE AT A PREMIUM. THE INDIAN MARKET HAS BEEN QUITE WEAK. BRUISING SELLOFF BECAUSE OF HIGH OIL PRICES. WHILST IT PICKED UP SIGNIFICANTLY, THE IPO MARKET WAS SLOW AT THE START OF THE YEAR. $9 BILLION WORTH OF IPOS AND THAT WAS THE STRONGEST THIRD-QUARTER EVER BUT IT WAS REALLY PICKING UP FROM A QUIET FIRST HALF AS THE HIGHER OIL PRICES AND THE REPERCUSSIONS FROM THE WAR IN THE MIDDLE EAST AFFECTED THE INDIAN MARKET. THERE’S A LOT HEDGING ON THIS.

1:34:13 IT CAME ABOUT LATER THAN IT WOULD’VE. WE HAD BEEN EXPECTING IT AS SOON AS THE SECOND QUARTER OF THIS YEAR BUT THEN IT HAD TO BE PUSHED BACK. VALUATIONS TRIMMED A LITTLE BIT. THE INDIAN MARKETS ARE NOT AS HOT AS THEY WERE PREVIOUSLY. HAIDI: WE ARE COUNTING DOWN IN TERMS OF OTHER MARKETS COMING ONLINE. A LOT OF THE MARKETS TAKING ON WHAT WE SEE FROM THE KOSPI. THE FACT THAT WE’VE EXTENDED

1:34:44 TUESDAY’S GAINS IS REASSURING FOR THOSE WHO ARE WONDERING ABOUT THE RESILIENCE OF THE BOUNCE IN KOREA, GIVEN THAT WE HAVE HAD A FEW FALSE STARTS. THAT LOOKS TO BE MORE SOLID WITH THOSE ENCOURAGING SK HYNIX NUMBERS. WE HAD THE ANTHROPIC DETAILS AS WELL. TAIWAN FUTURES UP BY 2%. HYNEK’S CREEPING HIGHER AFTER A RELATIVELY MUTED REACTION GIVEN THE POSITIVITY OF THOSE NUMBERS. WORRIED ABOUT THE NET NUMBERS THERE. 5.4% HIGHER. THAT’S IT FOR THE ASIA TRADE. THE CHINA SHOW IS NEXT.