♪ >> WELCOME TO “DAYBREAKAUSTRALIA.” WE’RE COUNTING DOWN TO ASIA’SMAJOR MARKET OPENS. ANNABELLE: A FLAT LEAD IN FOR ASIA WITHSTOCKS NEARING ALL-TIME HIGHS. JP MORGAN SAID THE BANKWON’T BUY BACK A LOT OF STOCK AT CURRENT PRICES. HAIDI:A HIGH ANTICIPATED EARNINGS REPORT. WE HEAR EXCLUSIVELY FROM THEC.E.O. JENSENG ON. ANNABELLE:A LOT OF SPECULATION AFTER THE.
IRANIAN KING’S DEATH. >> SYDNEY FUTURES DOWN ABOUT AON THE 01%. THE NIKKEI FUTURES SEEING A BITOF WEAKNESS. PRETTY CAUTIOUS SETUP FROM WALLSTREET. WE ARE WAITING FOR NVIDIANUMBERS, THE CRUX OF THE FRENZY, AND CAN IT SUSTAINANOTHER LEG FURTHER? WE ARE SEEING FUTURES TO MILDLOSSES IN HONG KONG. A BIT OF A DIP IN AUSTRALIA.PERHAPS A LITTLE BIT OF A GAIN IN JAPAN ONCE WE GET START.REMEMBER, WE’RE TRADING PRETTY.
CLOSE TO NEAR ALL-TIME HIGHSFOR A LOT OF THESE MAJOR MARKETS. >> THAT’S RIGHT.IT WAS PRETTY MUCH THE SAME STORY IN THE U.S. SESSION.WE HAD U.S. STOCKS SITTING AROUND THEMULTI-YEAR HIGHS. TREASURY IS INCHING LOWER INTHE SESSION. MORE FED SPEAKERS ON THE TAKE.WE’RE GOING TO HEAR FROM THE ATLANTA FED PRESIDENTS IN A FEWMOMENTS FROM NOW. THAT HAS BEEN DRIVING THEMARKET NARRATIVE OF LATE.
BUT THAT SHIFT AGAIN AS YOUSAY, HAIDI, IT DOES COME BACK ATTORNEYINGS OVER THE COURSE OFTHIS WEEK. ONE STOCK IN PARTICULAR IS THATNVIDEA IS THE LAST OF THE BIG TECH NAMES TO REPORT.INVESTORS ARE LOOKING FOR ANY SORT OF EVIDENCE AND THEGUIDANCE THAT WE CAN SEE THAT OPTIMISM AROUND A.I. AND WHETHER THAT CONTINUEDAMPLE I. CHIPS. CHAI SON WONG SPOKE US TOEXCLUSIVELY. AND WE HEAR FROM THE C.E.O.OUT TO BEING THIS PARTNERSHIP.
>> IT’S ABOUT DELIVERING ANENTIRE INFRASTRUCTURE. THAT ENTIRE INFRASTRUCTURE ISINSANELY COMPLEX. THE LAST 30 YEARS BOTH OF OURCOMPANIES HAVE CHANGED A LOT >> AL OF OUR P.C.’S WILL BEA.I.P.C.’S. THE REASON IS THAT ANYTHINGTHAT YOU’RE DOING THAT HAS AN EDIT PROPERTY IS GOING TO BESPED UP BECAUSE EVERY SOFTWARE DEVELOPER IN THE WORLD ISFIGURE OUT HOW TO USE ALL THIS NEW POWER IN THE G.P.U.’S ANDTHE N.P.U.’S. ANNABELLE: THAT WAS MICHAEL DEL.
LET’S BRING IN OUR FIRST GUEST.MARK TEMPLAR FROM OUR TOKYO STUDIOS.SO MUCH HAS BEEN PREDICATED ON BEG TECH.DO YOU SEE THAT PERSISTING AHEAD OF NVIDIA’S NUMBER OR DOYOU THINK VALUATIONS ARE BECOMING A PROBLEM RIGHT NOW?RON: WHEN I LOOK AT THE A.I. PHENOMENON AND SAY LET’S LOOKAT THE BIGGEST ECONOMIC DROPPINGSES OF OUR LIFETIME, INMY VIEW THERE ARE TWO OF THEM UNDERWAY. ONE IS A.I.AND THE AUTOMATION THAT ALLOWS FOR THE GLOBAL ECONOMY.AND THE OTHER IS THE ENERGY.
TRANSITION.THEY’RE IN CONFLICT WITH EACH OTHER.I DO THINK THERE’S RUNWAY FOR THIS STORY TO PLAY OUT.MY SUGGESTION IS FOR INVESTORS WE REALLY WANT TO STARTTHINKING ABOUT WHAT ARE THE SECOND AND THIRD ITERATIONS OFTHE A.I. STORIES. WE’VE HAD A SMALL GAIN.WHO ARE GOING TO BE THE NEXT COMPANIES WHO CAN CAPITALIZE ONTHIS OPPORTUNITY? IT’S ANOTHER FACET OR EXTENSIONOF WHAT WE’VE BEEN TALKING ABOUT AND IN AUTOMATION INTERMS OF TRY GOING TO CREASE.
EFFICIENCY IN THE ECONOMY — TOINCREASE EFFICIENCY IN THE ECONOMY. ANNABELLE:I THINK IT’S INTERESTING THAT YOU BRING UP ENERGY USAGEBECAUSE STORAGE HAS BEEN ONE OF THE KEY AREAS.WHERE ARE YOU LOOKING TO PLAY THE THEME THEN? RON:THE KEY ISSUE IS THERE ARE DIFFERENT FACETS OF A.I.WHO ARE THE USERS OF THE PRODUCTS AND SERVICES GOING TOBE? ONE OF THE KEYS FOR THE EARNINGS GROWTH OF THESE BIGTECH COMPANIES TO BE SUSTAINED IS THEIR CUSTOMERS HAVE TOREALIZE A RETURN ON INVESTMENT,.
RIGHT?IF YOU’RE A MAJOR CORPORATION AND YOU’RE SPENDING HUNDREDS OFMILLIONS OF DOLLARS ON BUILDING THAT INFRASTRUCTURE FOR A.I.,YOU NEED TO SEE EARLY SIGNS THAT THERE WILL BE A PAY OFF.IT COULD BE COMPETITIVE MANSION, MARKET SHARE, MARGINSBUT THEY’RE GONE TO NEED TO SEE THAT IT’S IMPORTANT TO FOCUS ONWHICH COMPANIES ARE DOING THIS INTELLIGENTLY?AND IT’S HARD TO READ THAT. A LOT OF THAT IS ASSESSINGTHEIR STRATEGY BUT THEN THERE’S ALSO LOOKING BEYOND THAT ANDSAYING WHETHER IT WOULD BE.
PRIVATE MARKETS OR PUBLICMARKET WHAT IS PLANES COME OUT OF THE WOOD WORKS ANDCAPITALIZE ON THAT INFRASTRUCTURE.I HAVE TO SAY IN THE 1999 OR 2000 ERA A LOT OF THE FOCUS WASON CISCO SYSTEMS AND SUN MICRO SYSTEMS BUT THERE ENDED UPBEING DOZENS OF COMPANIES THAT PROFITED ON THE BACK OF THOSERAILS. THAT’S ANAPHIA SET AS YOU MENTION THE POWER CONSUMPTION.THERE’S GOING TO BE ENORMOUS DEMANDS ON THE KID ON POWERAVAILABILITY GLOBALLY, THAT MIGHT BE ANOTHER TONIGHT PLAYTHIS.
>> DO YOU THINK WE HAVE GOODVISIBILITY OVER WHAT THOSE SECOND STAGE, THIRD STAGECERTAINLY LATER STAGE COMPANIES THE BEN FLIT BE? >> NO I THINK IT’S EARLY.ALL I CAN SAY IS WE CAN MAKE BROAD ASSERTIONS IN THAT ITHINK THIS WILL TRANSFORM MANY PARTS OF THE ECONOMY.IT CAN BE WHEN YOU GO FROM A FAST FOOD RESTAURANT OR ORDERAT DRIVE-THRU WINDOW TO DRUG TESTING TO SEE THE EFFICACY OFNEW COMPOUNDS OR THE EFFECTS OF CELLS FROM NEW BIO PHARMAPRODUCTS.
I THINK THIS IS THE BIGCHALLENGE RIGHT NOW IS THAT WE’RE SO EARLY IN THE GAME.IF WE’RE REALLY HONEST, THIS PHENOMENON IS SOMETHING NO ONEWAS TALK ABOUT VERY MUCH EVEN 24 MONTHS AGO.IT’S REALLY MORE OF THE LAST 18 MONTHS THAT THIS HAS BEEN FRONTPAGE IN THE HEADLINES. I THINK IT’S EARLY.IT’S A DIFFICULT TASK. BUT I THINK THAT’S WHERE THEREAL OPPORTUNITY MIGHT BE OVER THE NEXT THREE TO FIVE YEARS.AND THAT’S NOT TO SAY, BY THE WAY THERE’S NOT MOREOPPORTUNITY IN THE BIG PROVIDE.
NECESSARY THE BIG TECH UNIVERSE.THERE HAVE BEEN SOME PRETTY SIGNIFICANT EARNINGS GAIN.THE KEY CHALLENGE THERE IS CAN THOSE GAINS EXCEED HIGHEXPECTATIONS? AND WE’LL BE WATCHING CAREFULLYTHIS WEEK TO SEE AT LEAST IN THE CASE OF INVIDIA IF THEY DO. >> WE DID HEAR FROM CLEVELANDFED LORETTA MESSER ABOUT THE RATE TRAJECTORY.LET’S TAKE A LISTEN. >> I WAS ON THE RECORD SAYING IWAS AT THE MEDIA WHICH WAS THREE.THE DEVELOPMENTS I’VE SEEN IN.
THE ECONOMY RIGHT NOW, I WOULDNOT THINK THAT WOULD BE APPROPRIATE BECAUSE TINFRUSTRATION IN RISKS HAVE MOVED UP. HAIDI:THAT WAS LORETTA MISS. RON, DOES THAT IS IT WITH WHEREYOU’RE SEEING RATE HIKES? WE COULD SEE SOMETHING AS EARLYAS MID YEAR. RON: MY BASE CASE IS THAT I DO THINKTHERE’S A STRONG CASE FOR THE FEDS TO START CUTTING RATES ATTHE SEPTEMBER 18TH MEETING. BUT THERE’S A CHANCE THEY WILLBE ABLE TO CUT RATES AS EARLY AS JULY 3 1ST. THE PREMISE ORMY BASE FOR MY VIEW HERE IS.
THAT WHEN I LOOK AT INFLATIONFOR THE LAST TWO TO THREE YEARS, THERE’S A CLEARDECELERATION OF INFLATION. IN THE SECOND HALF OF LASTYEAR, IF WE LOOK THAT FED’S PREFERRED INDEX, THAT INDEX FORTHE SECOND HALF OF 2023 WAS BELOW 2%.WE HAD THE NASTY SURPRISE IN THE FIRST QUARTER THIS YEARWITH PC AND CPI RUNNING AT MUCH HOTTER LEVELS.BUT I WAS VERY ENCOURAGED BY THE APRIL REPORT ON C.P.I.LAST WEEK WHICH CAME BACK TO LEVELS MORE COMPARABLE TO THEFOURTH QUARTER.
I THINK BETWEEN NOW AND JULY,OBVIOUSLY, WE’LL GET TWO MORE INFLATION REPORTS BY SEPTEMBER18. WE’LL GET FOUR M. I’M HOPEFUL THAT WE GET TWO TOTHREE RATE CUTS BY THE FED AND PROBABLY MORE IMPORTANTLY TOTHE COST OF FUNDS, IT’S PROBABLY LESS IMPORTANT WHENTHE FED CUTS RATES THE FIRST TIME AND MORE IMPORTANT HOW FARTHEY CUT RATES THROUGH THE EASING CYCLE.IN MY VIEW, THE EASING CYCLE IS LIKELY TO END 3 1/2% ON FEDFUNDS WHICH IS HIGHER THAN MANY OTHER INVESTORS MIGHT BEEXPECTING.
AND MY LOGIC IS THE FLED BECUTTING RATES BECAUSE INFLATION IS SLOWING NOT BECAUSE OFECONOMIC WEAKNESS. I DO THINK THERE WILL BEDECELERATION IN THE U.S. THOSE LAGS ARE STILL HITTING INECONOMY. BUT I DON’T THINK THE FED WILLNEED TO TAKE RATES DOWN TO 2 1/2% TO 3%.IF THAT’S THE CASE, FAIR VALUE ON THE 10-YEAR TREASURY YIELDIS BETWEEN 4% TO 5% WHICH MEANS THEY’RE NOT GOING TO GET A LOTOF RELIEF AT THE LONG END OF THE CURVE.
>> RON, OBVIOUSLY, THE FED TECHEARNINGS DOMINATING THE MOMENTUM WHEN IT COMES TO WHATWE SEE FROM MARKET SENTIMENTS BUT I DO WONDER HOW MUCH YOU’REWATCHING INTERNATIONAL DEVELOPMENTS AS WELL WHEN ITCOMES FROM SOME OF THE EFFORTS THAT COME OUT OF CHINA, DO YOUTHINK THIS IS MEANFULLY — MEANINGFUL ENOUGH TO BE ABLE TOMAKE A DIFFERENCE HOW MARKETS PERFORM FROM HERE? >> WELL, I BELIEVE SINCE THEBEGINNING OF THE YEAR, THAT CHINA COULD END UP BEING ONE OFTHE STRONGEST EQUITY MARKETS.
GLOBALLY IN 2024.AND MY LOGIC THERE IS THE ECONOMY IS WEAK.WE KNOW THAT THE HOUSING ISSUES ARE DEEPLY EN GRAINED IN CHINA.THEY’RE GOING TO TAKE ANOTHER ONE, TWO, THREE YEARS TO WORKOUT. BUT SENTIMENT WAS SO NEGATIVEON CHINESE EQUITY, THE MARKET WAS THE CHEAPEST MAJOR MARKETIN THE WORLD THAT THERE WAS QUITE ENOUGH ROOM FOR UPSIDE.I THINK THERE’S MORE UPSIDE IN CHINA.BUT I WOULD CAUSING THAT THIS IS MORE OF A RENT, NOT OWN OR ABETTER DESCRIBED AS A TEA WHEN.
I LOOK AT THE CHINESE EQUITYMARKET, I THINK THE REAL CHALLENGE IS THE UNDERLYINGECONOMIC STORY IS NOT PARTICULARLY BRIGHT.THE ANNOUNCEMENTS LAST WEEK IN PARTICULAR ON FRIDAY, I THINKARE A STRONG STEP IN THE RIGHT DIRECTION.BUT THE GOVERNMENT ANNOUNCEMENT FOR EXAMPLE THAT THE PBOC WOULD PROVIDE 300 BILLION REMEMBI.IT’S A GOOD START. BUT THE AN CEASE I’VE SEENINDICATE WE MIGHT NEED $3 TRILLION TO $4 TRILLION.AND I WOULD NOTE THE PBOC HAD.
ANNOUNCED A SIMILAR FACILITYBEFORE. THERE WAS 100 BILLION RMB AND 2BILLION HAVE BEEN USED. IT’S NOT CLEAR THE DETAILSAREN’T THERE. IT’S NOT CLEAR WHAT THE TAKEUPWILL BE ON THIS FUNDING. AND SO AGAIN, I APPRECIATE THATTHE GOVERNMENT IS ACTING BUT WILL NEED TO WAIT AND SEE IFTHIS ACTUALLY LEADS TO HOUSING BEING ABSORBED TAKEN OUT OF THESUPPLY MOVED INTO PUBLIC HOUSING AND STARTING TO RESOLVESOME OF THESE ISSUES IN THE HOUSING MARKET.
>> REALLY GREET HAVE YOU US.RON, LAZARD ASSET MANAGEMENT WE’LL HAVE MORE FROM SYDNEYHUANG, MICHAEL DEL, AND BILL MCDERMOTT.WE WERE TALK ABOUT THE OPPORTUNITY TO END THE GLOBALENERGY TRANSITION. WHAT YOU FOCUSING ON? >> PRETTY SOON THIS HALL BEHINDME WILL FILL UP WITH 200 DELEGATES AND EXHIBITORS.THE THEME OF THIS YEAR’S CONFERENCE IS DELIVERING THENEW ENERGY ECONOMY. AUSTRALIA’S OIL AND GAS LOYALTYBE HERE.
DOES SEEM LIKE AN OXYMORON.THEY HAVE BEEN DEALING WITH THESE THEME.A CARBON CAPTURE STORAGE, HYDROGEN AND THE WORLD OF GASAS A TRANSITION FIELD. THAT FITS FROM WHAT WE HEARD INGOVERNMENT IN THE FUTURE GAS STRATEGY.PART OF THE PLAN IS TO HELP AUSTRALIA BECOME A CRITICALMINERALS PROCESSING HUB. THAT’S GOING REQUIRE ENERGY.SO THERE’S A BIG ROLE FOR GUESTS HERE.PRICES ARE STILL VERY HIGH. PRICES WE HAVEN’T SEEN SINCEJANUARY. THE C.E.O.
WILL GIVE A SPEAK IN THISCONFERENCE A LITTLE BIT LATER ON.SHE’S GOING TO BE HITTING THAT THEME. SUPPLY, SUPPLYING SUPPLY.I’LL BE TALKING TO MEG O’NEIL A LITTLE BIT LATER ON THISAFTERNOON. >> COMING UP, IRAN CALLS THEELECTION AVENUE — AFTER THE DEATH OF THEIR PRESIDENT.THIS IS BLOOMBERG. ♪ >> POWER TRANSITIONS IN THEMIDDLE EAST ARE IN FOCUS AFTER THE DEATH OF THE IRANIANPRESIDENT.
MEANWHILE IN SAUDI ARABIA,THEIR PRIME MINISTER’S HEALTH IS BEING WATCHED AS HE’SRECEIVING TREATMENT FOR LUNG INFLAMMATION.MICHAEL JOINS US FOR ALL OF THESE DEVELOPMENTS IN A YEARTHAT HAS MANY UP EXPECTED DEVELOPMENTS SO ADDING TO THESHEER AMOUNT OF UNCERTAINTY. >> UNCERTAINTY IS A PERFECTWORD IN A SENSE THAT THE IRANIAN PRESIDENT IS NOT –HE’S NOT — IT’S NOT A POWERFUL POSITION IN ITSELF. THE AYATOLLAH HIAND THE TALK NOW MOVES TO HIS.
SON WHICH WOULD BE UNUSUAL BECAUSE IT’S NOT MEANT TO BEHEREDITARY SYSTEM. IT DOES RAISE SOME QUESTIONSTHE IDEA OR THE NOTION THAT PERHAPS SOMEONE MORE LIBERALWILL BE INSTALLED. IT SEEMS VERY, VERY UNLIKELY.THIS IS A REGIME THAT IS AT WEAR WITH ITS OWN PEOPLE.RELATIONS ARE VERY POOR. 60% OF IRANIANS ARE UNDER 30.THESE SANCTIONS MAKE IT DIFFICULT IN THE ECONOMY.THIS THEOCRACYY A LOT OF OLDER MEN THERE, I’M A GENTROCRACY,AND THEY’RE NOT INTERESTED IN.
PEOPLE’S WELFARE.THEN YOU HAVE SAUDI ARABIA, OF COURSE, THE IMPLICATIONS AREN’TQUITE AS STRONG AS THEY MIGHT SEEM. THE CROWN PRINCE HAS BEENRUNNING AFFAIRS SINCE 2017. HE DID CANCEL HIS TRIP TO JAPAN.IT’S FAIRLY SERIOUS WITH HIS FATHER WHO HAS A LUNGINFLAMMATION WHO IS ALSO IN HIS LATE 80’S.CHINA BROKE IN A RESTORATION BETWEEN IRAN AND SAUDI ARABIA.MOST THINK THAT WON’T BE AFFECTED WITH DEPOWERTRANSITION. IT’S UNCERTAINTY. WE HAVE SOME REPORTING ON THETERMINAL WHICH HAS ISRAELI.
ANALYST SAYING IT’S IMPORTANTTO KNOW WHO YOU’RE UP AGAINST. THIS UNCERTAINTY AS TO WHO WILLCOME IN AS THE PRESIDENT OF IRAN, WE JUST HAVE TO WAIT TOSEE HOW IT PANS OUT. >> YEAH, CERTAINLY ADDS A FRESHLAYER OF UNCERTAINTY TO THE ISRAEL-HAMAS WAR.BUT WHAT COULD INJECT A LEVEL OF UNCERTAINTY IS THE CHIEFPROSECUTOR OF THE I.C.C. >> YEAH, IT’S AN ASTONISHINGDECISION, AN ARREST WARRANT THEY’RE RECOMMENDING THAT THATWOULD BE ISSUED FOR PRIME MINISTER NETANYAHU AND THEPRIME MINISTER GALLANT AS WELL.
AS HAMAS’S MILITARY CHIEF ASWELL AS SOME POLITICAL OFFICIALS THERE FROM HAMAS ASWELL. I DON’T THINK THIS DOES VERYGOOD FOR THE I.C.C.’S CREDIBILITY TO PUT HIM IN THE FRAME IS SOMEONE — WITH SINWAWHO MURDERED 1200 INNOCENT PEOPLE WHO INVOLVED SEXUALASSAULTERS USED AS A WENT OF WAR, HAS WELCOMED THE ISRAELYATTACKS ON PALESTINE BECAUSE IT STRENGTHENS HIS CAUSEINTERNATIONALLY HE HAS NO CONCERN FOR HUMAN LIFE TO PUT ADEMOCRATICALLY PRIME MINISTER.
ON THE SAME LEVEL, IT ALMOSTSPEAKS TO NOT BEING ABLE TO DEFEND YOURSELF.WHATEVER WAS GOING HAPPEN, IT’S GOING THE LEAD CIVILIAN DEATH.IT’S ALMOST SAYING YOU CAN’T DO ANYTHING IN RESPONSE.AND WE SAW LAST YEAR WHEN THEY — WHEN THEY INDICTED VLADIMIRPUTIN. I MEAN, RUSSIA WAS ABDUCTINGCHILDREN FROM UKRAINE AND REKEYING THEM.THESE ARE CRIMES OF WAR WHAT ISRAEL HAS DONE IS JUSTCONFLICT INVOLVES CIVILIAN DEATH.AND IT WAS A REACTION TOWARD AN.
ATTACK.SO IT’S — IT REALLY DOES — IT’S A WORRYING SIGN.IT’S A BE THE OF A CONCERN FOR THE INCH C.C. CREDIBILITY AND IT HAD GRADWALLY BEING BUILT UP FOR LEADER AND OTHER WHO IS HAVE BEENINVOLVED IN WAR CRIMES AND TO NOW PUT OUT AN ARREST WARRANT,UNDOUBTEDLY A LOT OF IT IS GOOD WORK, I THINK. >> A PANEL OF INTERNATIONALCRIMINAL COURT JUDGES WOULD NEED YOU TO CONSIDER TO ACCEPTTHAT APPLICATION FROM THE.
I.C.C.’S CHIEF PROSECUTOR THATWAS MICHAEL HEATH. ♪ HAIDI:JAMIE DIAMOND SAID THE BANK IS WELL ON ITS WAY TO SUCCESSPLANS. HE WAS ASKED ABOUT HOW LONG HEWOULD REMAIN AS C.E.O. >> I HAVE THE ENERGY I’VEALWAYS HAD. THAT’S IMPORTANT. WHEN I CAN’T PUT THE JERSEY ONAND GIVE IT ITS FULLEST THING I SHOULD LEAVE BASICALLY.THE BOARD PROBABLY — IT’S UP TO THEM WILL I STAY AS CHAIRMANFOR A WHILE? WE’LL SEE.
BUT I THINK THE MOST — ANDWE’RE ON THE WAY. WE’RE MOVING PEOPLE AROUND.ANNABELL E: BRE, JAILED DIMON HAS SAID FIVEMORE YEARS WOULD BE THE CASE FOR SUCCESSION HERE.HOW LONG HE WOULD REAL ESTATE 911 THE ROLE.BUTS THAT PRETTY BIG SHIFT IN COMMENTARY. BR E:WHAT WE GOT TODAY WAS A SHIFT IN THE TONE AND THE SHIFT INTHE CONTEXT HE’S GIVEN ABOUT HOW LONG HE EXPECTS TO STAY INTHIS ROLE. ON MONDAY J.P. MORGAN HAD THEIR ANNUALINVESTOR DAY.
JAMIE DIMON GOT A QUESTIONABOUT MIKE MAYO ABOUT HIS PLANS AND WHERE SUCCESSION MIGHT GOINSTEAD OF USING THAT PHRASE THAT HE’S OFTEN JOKINGLY USEDOF FIVE MORE YEARS, HE DECIDELY SAID NOT FIVE MORE YEARS.THE BANK IS WELL ON ITS WAY TO THE SUCCESS PLANNING.HE SAID THAT THIS IS UP TO THE BANK’S BOARD AND THAT HE STILLHAS THE ENERGY THAT HE’S ALWAYS HAD. HE PUT ON THE ITERATION OFPUTTING ON THE JERSEY. HE’S UP AND EXCITED TO DO THAT.BUT THIS BRINGS IN THE QUESTION OF THE TIME LINE THAT WE SEE.
FOR THE POTENTIAL SUCCESSIONTHERE. ANNABEL E: WE SAW A SHOVEL IN THE RANKS.HE SAID THE PROCESS IS WELL UNDERWAY. BRE:THAT’S A YELLY GOOD QUESTION. THE NEXT COULD — QUESTIONWOULD BE WHO IS UP? TODAY IT WAS HEARING FROM ALLOF THE J.P. MORGAN’S TOP LIEUTENANTS.SOME OF THE PEOPLE THAT WE HEARD FROM TODAY INCLUDEJENNIFER PEEPSACK AND ARE IN THE COMMERCIAL INVESTMENT BANKAS WELL AS MARION LAKE WHO HAS BEEN THERE SINCE 2021 AND HASSOLE CONTROL OF THAT SEGMENT.
WE HEARD FROM ALL OF THESEFOLKS TODAY. THEY GAVE DETAILED PRESENTATIONS ABOUT THEIRSEGMENTS. THOSE ARE THREE NAMES THAT HAVEBEEN IN FOCUS. OBVIOUSLY, THERE’S NOT AN EXACTTIMELINE YET. ANNABELLE:THANKS SO MUCH FOR YOUR TIME THIS EVENING. J.P.MORGAN ONE OF THE BIG LAG HITS OF THE SESSION KNOWING THAT WEHEARD JAMIE DIMON NO BUYBACKS BUT A DROP IN THE STOCK.EQUITIES TRADING AT THEIR YEAR HIGH AND NVIDIA NUMBERS.CAN WE SEE THAT MOMENTUM AROUND.
TECH, AROUND A.I. EXTENDING?THAT’S THE BIG QUESTION FACING OFFICIALS.OFFICIALS REITERATING THE CASE FOR THE NEED FOR KEEPING RATESHIGHER. HERE YOU SEE J.P. MORGAN AT 4.50%. HAIDI:RENEWED FOCUS ON POWER SYSTEMS IN THE MIDDLE EAST AFTER THE DEATH OF THE PRESIDENT OF IRAN. TO PARAPHRASE SOMEONE ELSE HE’SSPOKEN TO, YOU WANT TO KNOW WHO YOU’RE UP AGAINST. I GUESSTHAT’S INTERESTING.
DO YOU THINK EITHER OF THESEPOTENTIAL LEADERSHIP SHIFTS ALSO PORTEND TO CHANGES INPOLICY OR POSITIONING AT ALL? >> NO, LISTEN, I THINKCONTINUITY WILL BE THED ORER OF THE DAY HERE FOR A COUPLE OFREASONS. FIRST OF ALL, THE PRESIDENT ANDTHE FOREIGN MINISTER REALLY DON’T SET THE MAJOR FOREIGNPOLICY GOALS FOR IRAN. THAT COMES OUT OF THE OFFICE OFTHE SUPREME LEADER. ANYBODY WHO REPLACES THOSE TWOPOSITIONS WILL ESSENTIALLY DO THEY SAME.ONE THING THE IRANIAN REGIME.
WANTS IS STABILITY, AS MUCH ASPOSSIBLE, SO THE REPLACEMENTS FOR THE CURRENT PRESIDENT ANDFOREIGN MINISTER WILL REFLECT THAT. >> AS MANY HAVE POINTED OUT,RAISI WAS A TOP CONTENDER FOR BEING NEXT SUPREME LEADER.DO YOU THINK THAT CASTS SOME UNCERTAINTY IN TERMS OF HOWTHAT ROLE IS FILLED? POTENTIALLY AS IT WASSUGGESTED, PRAPT HIS SON MIGHT — THE SUPREME LEADERRER’S SONMAY STEP IN? >> THAT’S THE $64,000 QUESTIONAT THE MOMENT.
EVEN PRIOR TO HIS DEATH, THEIDEA OF FRONT RUNNERS IS FRAUGHT WITH DIFFICULTIES WHENWE’RE TALKING ABOUT THE SUCCESSION TO THE SUPREMELEADER’S POSITION BECAUSE IT’S ONLY HAPPENED ONCE PREVIOUSLY. SO THE SYSTEM IS IMMATUR AND –IMMATURE AND RELATIVELY UNTESTED BUT HE WAS BEING PUTIN THE POSITIONS TO MAKE HIM A STRONG CANDIDATE TO BE SUPREMELEADER AND WITH HIM NOW GONE THAT’S THROWN THE CONSERVATIVEFACTIONS INTO A DEGREE OF DISARRAY BECAUSE IT WASN’TFORESEEN, OBVIOUSLY.
SO THAT’LL HAVE — SO THEY’LLHAVE TO COME UP WITH THEIR OWN CANDIDATE.WHO THAT IS, I THINK, WE’LL FIND OUT A BIT MORE OVER THECOMING MONTHS. IT CERTAINLY HAS THROWN THE CATAMONGST THE PIGEONS. ANNABELLE: SOME OF THE PEOPLE WE’VE SPOKENTO SAID THE IDEA OF DYNASTIC RULE IN THE COUNTRY HAS BEENSORT OF A SHOE — ESHOOED FOLLOWING THE IRANIANREVOLUTION. DO YOU SEE THAT COMPLICATING IFTHEY HAVE TO ARGUE AGAINST THAT APPROACH NOW OR WHETHER ITCOMPLICATES THE SUPREME.
LEADER’S SON ALSO BEINGNOMINATED? >> IT’LL BE A CONSIDERATION, ASHAS BEEN POINTED OUT, THE LAST THING YOU WANT TO DO AFTER, YOUKNOW, A HALF CENTURY, NEARLY, AFTER THROWING OVER A DOMESTICRULE, IS TO THEN HAVE THE SON OF THE SUPREME LEADER TAKE OVERTHAT POSITION. PARTICULARLY IF HIS JURISTIC ORRELIGIOUS QUALIFICATION AREN’T TO THE SAME DEGREE.WE SAW WITH THE ADVANCE OF THE CURRENT SUPREME LEADER YOU CANALWAYS MAKE EXCEPTIONS IF IT’S IN THE BEST INTEREST OF THESTABILITY OF THE REGIME.
SO WHILE THE IDEA THAT MUSTABAWOULD TAKE OVER AS SUPREME LEADER PRESENTS A RANGE OFCOMPLICATIONS, IT’S NOT OUT OF THE QUESTION IF THOSE CLOSESTTO THE CENTER OF POWER, INCLUDING THE SUPREME LEADERHIMSELF, BELIEVES THAT’S THE BEST OPTION FOR THE STABILITY,FUTURE STABILITY, OF THE REGIME. THEY’LL WORK THEIR WAY AROUNDTHE JUSTIFICATION IN THIS INSTANCE IF THEY BELIEVE IT TOBE THE BEST OPTION FOR THEM. WITHOUT A DOUBT, IT WOULD BE COMPLICATING FOR THAT TO OCCUR.HAIDI: DO YOU SEE REGIME CHANGE.
INJECTING MORE INSTABILITY INTOTHE ISRAEL-HAMAS WAR AND THE OUTCOME THERE? >> I THINK WE HAVE TO SEPARATETHOSE TWO ISSUES. IN SAUDI ARABIA, MUHAMMAD BINSALMAN HAS BEEN EFFECTIVELY RUNNING SAUDI ARABIA SO THERE’DBE A GREAT DEGREE OF CONTINUITY WITH THE DEATH OF THE KING, IFTHAT WAS TO OCCUR, AND M.B.S. HAS BEEN IN DIRECTCOMMUNICATIONS WITH THE U.S. ABOUT POTENTIAL BILATERALAGREEMENTS, THE U.S. HAS FLOATED THE IDEA OF SAUDIPARTICIPATION IN SOME FUTURE.
SECURITY FORCE.THOSE KINDS OF ISSUES ARE ALREADY BEING ADDRESSED WITHMUHAMMAD BIN SALMAN AS WE SPEAK. AS FAR AS IRAN IS CONCERNED, IDON’T SEE ANY REAL CHANGE IN THEIR FOREIGN POLICY OUTLOOK ATTHE MOMENT. THEY SENSE THAT EVENTS FAVORINGTHEM AT THE MOMENT AND THEIR ASYMMETRIC WAY OF ENGAGING WITHTHE REGION WILL CONTINUE FOR THE FORESEEABLE FUTUREREGARDLESS OF WHO IS IN POSITIONS OF AUTHO AUTHORITY.ANNABELLE: IT WAS JUST A FEW WEEKS AGO,APRIL 14, IN FACT, WHEN WE SAW.
WHAT WE WOULD HAVE EXPECTED ASRED LINES BEING TESTED BETWEEN ISRAEL AND IRAN.WITH THIS LEADERSHIP CHANGE, I KNOW THAT CONTINUITY ISEXPECTED. DO YOU EXPECT THIS IDEA OF ASHADOW WAR TO CONTINUE AND POTENTIALLY MORE VOLATILITY ONTHE FRONT? >> LISTEN, I DON’T DOUBT THEIDEA OF THIS, CONFRONTATION WILL CONTINUE FOR THEFORESEEABLE FUTURE. WIT WILL RECEDE AT VARIOUSTIMES AND PEAK AT OTHER TIMES. YOU’RE SEEING A PEAK CURRENTLY.BUT WE HAVE TO REMEMBER THAT.
UNS PRE DENTD AERIAL ATTACKLAUNCHED BY IRAN AGAINST ISRAEL WAS IN RESPONSE TO PROVOCATIONSFROM ISRAEL IN TERMS OF AN ATTACK AGAINST SENIOR IRANIANMILITARY AND IAJC PERSONNEL IN THE COMPOUND IN DAMASCUS.THEY FELT THE RED LINE HAD BEEN BREACHED.BUT THEY — THEIR RESPONSE WAS VERY WELL CALCULATED INSOFAR ASIT WAS A MASSIVE AND UNPRECEDENTED ATTACK BUT THEYDIDN’T HAVE THE ELEMENT OF SURPRISE AND IT WAS SHOWN THEATTACK COULD BE THWARTED. IN THIS VERY STRANGE ANDBIZARRE WAY OF RESETTING RED.
LINES, I THINK WE’RE SEEINGTHAT IN THE RECENT PAST, AND I THINK WE’LL SEE A CONTINUITY OFTHE SHADOW WAR FOR THE FORESEEABLE FUTURE. ANNABELLE:ROGER, ALWAYS GREAT TO HAVE YOU WITH.ROGER SHANAHAN, INDEPENDENT MIDDLE EAST ANALYST, JOINING US.A LOFT THIS EXPECTED TO CONTINUE WEIGHING ACROSS THECOMODCY TYES SPACE. WE HAD A BIT OF A SHRUG WHEN ITCOMES TO IMPACT ON THE CRUDE MARKETS.THAT DIP IN THE EARLY PART OF THE WEEK BEING SUSTAINED AS WESEE NEW YORK CRUDE STILL UNDER.
$80 A BARRELTHERE REALLY THISRANGE BOUND SITUATION CONTINUING TO SHOW THAT TRADERSARE LOOK AHEAD MORE TO THE OPEC PLUS MEETING IN EARLY JUNE FORSUPPLY POLICY EVEN THOUGH WE’RE EXPECT A ROLLOVER OF THEEXISTING LIMITS. WE’RE GETTING CLOSE TO THE 20LEVEL THERE, EVEN THOUGH SOME CHINESE MARKETS WERE DEEMEDDISAPPOINT BIG INVESTOR THEY DID CREATE MORE DEMAND,SUGGESTING WE COULD SEE THE HOUSING GLUT KEY SEE SOMEIMPROVEMENT. WE’RE WATCHING COPPER CONTINUETHIS RALLY, JUST UNDER THE.
1,000 LEVEL THERE, WHICH IS ASORT OF RECORD HIGH BUT IT’S CONTINUING TO PILE UP IN BITSON THE PROSPECT OF SUPPLY SHORTFALLS. ANNABELLE:WE’RE TAKING A LOOK AT THE ENERGY SECTOR. CHINA EASE L.N.G.REQUIREMENTS ALONE SET TO JUMP BY ALMOST ONE FIFTH THIS YEAR.LET’S GET MORE WITH OUR L.N.G. ANALYST. BIG FOCUS ON L.N.G.DEMANDS. TALK US THROUGH THE FORECASTSYOU’RE PREDICTING. >> CHINA L.N.G.IMPORTS ARE LOOKING STRONG SO.
FAR THIS YEAR.WE THINK CHINA IS ON TRACK TO ABSORB NEARLY $80 MILLIONMETRIC TONS OF L.N.G. THIS YEAR. THERE ARE A FEW KEY DRIVERS OFTHIS. CHINA IS ABLE TO ACHIEVE 5%G.D.P. GROWTH RATE AS PAIRED TO THE4.5% GROWTH RATE WE WERE EXPECTING AT THE BEGINNING OFTHE YEAR. THIS IS SUPPORT GROWTH FROM THESECTOR CLOSELY RELATED TO ECONOMIC GROWTH.AND OTHER PRICES RELATE TO THE STRONG L.N.G. IMPORTS.THE ECONOMICS OF L.N.G.
SAYS THESE ARE COUNTERPARTS.OTHERS ARE WEATHER RELATED. AND MORE CARGOES ARE COMINGTHRU TERMINALS IN CHINA RATHER THAN BEING SOLD ELSEYSM .ANNABELLE: THERE’S A NUMBER OF SNU GNUSUPPLY PLONLTS, HOW DOES THAT AFFECT THE SUMMER? >> WE SEE LIMITED GROWTH THISYEAR BUT OVERALL WE’RE EXPECTING SUPPLY TO BE ROUGHLYTWO MILLION TONS THIS SUMMER, ONLY TWO MILLION TONS HIGHERTHAN LAST YEAR. ON AN ANNUAL VISIT WE AREEXPECTING THE RISE BY ONLY.
SEVEN MILLION TON WHICH IS ISLESS THAN THE GROWTH SEEN LAST YEAR. SO MOST OF THE SUPPLY ISHAPPENING IN THE FOURTH QUARTER AS NEW PROJECTS IN THE U.S.CONTRIBUTE MORE VOLUMES. WE ARE ASSUMING PROJECTS LIKEMINES AND CORPUS TRIS TEE STATE STREET IN THE COLD QUARTER, AND ONE OF THE REASONS FOR SUPPLYGROWTH, GROWTH WE HAVE SEEN IN PLACES LIKE EGIANT — EGYPT ANDNIGERIA. AND ALSO ISSUES IN RUSSIA.HAIDI: WHAT ABOUT THE MARKET, WE SAW AGRAPHIC LOOKING AT ASIA’S L.N.G.
PRICES RISE, SO WHAT ABOUT THATBUT ALSO THE COMPETITION BETWEEN ARREST AND EUROPEANBUYERS AS WELL? >> ON A FUNDAMENTAL LEVEL,MARKS ARE STILL BEARISH. WE ARE PROJECTS UNDERGROUND GASTO REACH THAT BY NOVEMBER. THIS IS LIKELY TO CONTINUELIMITING COMPETITION BETWEEN EUROPEAN BUYERS AND TAKEDOWNWARD PRESSURE DESPITE LIMITED GROWTH AND SUPPLY THISYEAR. HOWEVER, WE WILL ALSO SEE SOMESUPPORT TO PRICES DESPITE THESE BALANCES AS THERE ISNERVOUSNESS IN THE MARKET.
IT IS LIKELY TO CONTINUEBECAUSE OF THE POSSIBLE SUPPLY SO FOR EXAMPLE WE HAVE SEEN THELOSS OF SUPPLY FROM AUSTRALIA, MALAYSIA AND THE U.S. HAVE SUPPORTED PRICES. >> BLOOMBERG ANALYST, MORE TO HAIDI:A 234U CONFERENCE OF AUSTRALIAN OIL AND GAS PRODUCERS IS UNDERWAY IN PERTH AS THEY GAPLE WITH THE TRANSITION TO NET ZEROEMISSIONS. GREAT TO HAVE YOU WITH US, WHATIS THE MOOD AT THIS EVENT?.
IS EVERYONE FOCUSED ON THEOPPORTUNITIES OF THIS GLOBAL ENERGY TRANSITION POTENTIALLYBRINGS, OR POTENTIALLY I GUESS THERE’S ALSO CONCERNS ABOUT THERISKS THAT ARE BEING THROWN UP AS WELL. >> WE’RE JUST GETTING UNDER WAYHERE IN PERTH AT THE AUSTRALIAN ENERGY PRODUCERS CONFERENCE,ONE OF THE LARGEST BUSINESS CONFERENCES IN AUSTRALIA.WE’RE EXPECTING WELL OVER 1,000 DELEGATES THROUGH THE DOORSOVER THE NEXT THREE DAYS. IT’S A FANTASTIC OPPORTUNITYFOR THE INDUSTRY TO COME.
TOGETHER, TO SHARE THE LATESTINNOVATIONS AND TECHNOLOGIES. BUT ALSO TO DISCUSS THOSEISSUES THAT ARE REALLY IMPORTANT FOR THE INDUSTRY, FOROUR ROLE IN TERMS OF THE TRANSITION, AND OUR ROLE IN THEREGION IN TERMS OF BEING A RELIABLE SUPPLIER OF L.N.G. TO ASIA. >> IN TERMS OF THE CURRENTPOLICY SETTINGS, FOR AUSTRALIA, DO YOU THINK THAT’S SUFFICIENTTO ENCOURAGE NEW LEVELS OF INVESTMENT?.
>> WELL, THERE’S NO DOUBT THATWE ARE SEEING A NUMBER OF REFORMS AND CHANGES IN THEPOLICY AND REGULATORY ENVIRONMENT HERE IN AUSTRALIAIN THE LAST 12 TO 18 MONTHS. JUST A WEEK OR SO AGO, WE HADTHE FEDERAL GOVERNMENT RELEASE THE FUTURE GAS STRATEGY THATWAS UNAMBIGUOUS IN TERMS OF LONG-TERM CRITICAL ROLE THATNATURAL GAS WILL PLAY IN THE ENERGY MIX TO 2050 AND BEYOND.THAT INCLUDES HERE IN AUSTRALIA BUT ALSO IN TERMS OF THE ROLEOF L.N.G. IN THE REGION. SO WE REALLY VERY MUCH WELCOMETHAT RESHOT OF THE POLICY.
ENVIRONMENT.WE’RE NOW LOOKING AS AN INDUSTRY TO WORK WITH THEGOVERNMENT TO ENSURE THAT WE CAN GET THE INVESTMENT THAT WENEED TO BRING OUR NEW SUPPLY FOR THE DOMESTIC MARKET BUTALSO FOR OUR INTERNATIONAL CUSTOMERS. ANNABELLE:AND SPEAKING OF THOSE INTERNATIONAL CONCERN, WE HAVE– INTERNATIONAL CUSTOMER, WE HAVE HEARD CONCERNS FROM BUYERSOF AUSTRALIA’S L.N.G. THAT THEIR CONTRACTS WON’T BEHONOR. DO YOU THINK THESE CHANGES AREENOUGH TO ALLEVIATE THOSE FEARS?.
>> WELL, WE SHARE SOME OF THECONCERNS OF OUR ORIGINAL TRADING PARTNERS.IT’S IMPERATIVE THAT THOSE L.N.G. CONTRACTS ARE HONORED.THE INDUSTRY IS WORKING HARD TO ENSURE WE REMAIN A RELIABLE,STABLE SUPPLIER OF L.N.G. WE KNOW HOW IMPORTANT OUR L.N.G.IS TO KEEPING THE LIGHTS ON IN TOKYO, TO FUELING MANUFACTURINGIN SOUTH KOREA, AND IT’S KEY THAT WE HAVE THE STABILITY NOWIN THE POLICY SETTINGS TO BRING ON THOSE NEW INVESTMENTS THATARE NEEDED AND TO RESET THAT RELATIONSHIP WITH THE MAJORINVESTORS. ANNABELLE:.
THEN YOU’VE GOT PROJECTS INQATAR AND THE U.S. THAT’LL BE ABLE TO DELIVERL.N.G. AT A LOWER COST. WILL AUSTRALIABE ABLE TO STAY COME PET TOIFN AN INTERNATIONAL LEVEL AS WELL? >> THERE’S NO QUESTION THATWE’RE HEADING INTO AN ERA OF INTENSE COMPETITION IN L.N.G.MARKETS. YOU CAN SEE THAT THE U.S.,QATAR, ARE REALLY DOUBLING DOWN ON THEIR INVESTMENTS IN L.N.G.IT DOES REFLECT, THOUGH, THE IMPORTANT ROLE L.N.G.WILL PLAY IN TERMS OF THE.
TRANSITION, PARTICULARLY IN THEREGION AND FOR SOVIET ASIA, THE INTERNATIONAL ENERGY AGENCY ISPREDICTING AS MUCH AS A 10-FIELD INCREASE IN L.N.G.DEMAND. UAUSTRALIA IS WELL-POSITIONEDTO BE ABLE TO SUPPLY THAT L.N.G. TO THE REGION, TO SUPPORT NOTJUST ENERGY SECURITY IN THESE COMIE BUS THE TRANSITION AWAYFROM COAL AND TOWARD NET ZERO. >> WHAT ARE YOUR VIEWS ONAUSTRALIA’S ROLE FOR CARBON CAPTURE, PARTICULARLY SERVINGTHE REST OF THE INDUSTRIALIZED AREA?.
>> CERTAINLY THE FUTURE GASSTRATEGY RELEASED BY THE FEDERAL GOVERNMENT JUST A WEEKOR SO AGO DID INDICATE A VERY IMPORTANT ROLE AND OPPORTUNITYFOR AUSTRALIA TO PROVIDE THAT C.O.2, THAT WAS A CO-2 STORAGETO THE REGION. C.C.S. IS IMPORTANT TO AFFECT OURINDUSTRIAL STRUCTURE. SO WE ARE ALREADY PROGRESSINGOPPORTUNITIES TO BE ABLE TO TAKE THAT CO-2 FROM COUNTRIESLIKE JAPAN AND KOREA AND START SAFELY AND PERMANENTLY HERE –STORE IT SAFELY AND PERMANENTLY HERE IN AUSTRALIA.THAT’S PART OF OUR CONTRIBUTION.
TO A GLOBAL NET ZERO TARGET.HAIDI: SAMANTHA, A LAST QUESTION ONGAS PRICES GENERALLY. THEY’VE DROPPED FROM THE RECORDWHIETION SAW GOING BACK TO 2022 BUT THEY’RE STILL WELL ABOVETHE LEVELS OVER THE LAST DECADE OR.SO DO THOSE SORT OF HIGH PRICES RISK DEMAND DESTRUCTION ACROSSTHE EMERGING MARKETS? >> CERTAINLY WE’VE SEEN APERIOD OF HIGH PRICES FOLLOWING RUSSIA’S INVASION OF UKRAINE.THIS WAS A GLOBAL ENERGY CRISIS. WE HAD UNPRECEDENTED PRORNSL.N.G. MARKET.
THOSE PRESSURES HAVE COME OFFSUBSTANTIALLY STILL BUT THERE’S STILL STRONG, GROWING DEMANDFOR L.N.G., THAT’S WHY HERE IN AUSTRALIA WE FEEL IT’SIMPORTANT THAT WE GET THE INVESTMENT SET GHTS RIGHT TOCONTRIBUTE TO THE SUPPLY NEEDED TO MEET THAT DEMAND AND KEEPL.N.G. AFFORDABLE, RELIABLE, BECAUSEWE KNOW WHAT HAPPENS WHEN THE GAS SUPPLY IS NOT THERE, THATCOUNTRIES ARE SHIFTING BACK TO COAL AND HIGHER EMISSION FUELS.IT’S NOT GOOD FOR ECONOMIES, IT’S NOT GOOD FOR JOB AND IT’S.
NOT GOOD FOR THE ENVIRONMENT.HAIDI: THAT WAS THE CHIEF EXECUTIVE OFAUSTRALIAN ENERGY PRODUCERS. WE’LL HAVE MORE FROM THAT EVENTAHEAD. IN THE MEANTIME, A QUICK CHECKON HOW MARKS ARE GOING SO FAR, JUST LOOKING AHEAD TO THE OPENOF SIDNEY, SEOUL AND TOKYO. YOU CAN SEE IN FUTURES, FAIRLYRANGE BOUND SO FAR. THAT SETS THE STAGE FOR WHATWE’RE EXPECTING IN A SESSION TODAY.QUITE LISTLESS TRADING BECAUSE INVESTORS ARE LOOKING AHEAD TOTHE NVIDIA EARNINGS AND THE.
LAST OF THE BIG TECH TO BEREPORTED. WE DID HERE FROM NVIDIA ANDDELL’S C.E.O. SAYING THE COMPANY WILL UNVEILA NEW LINE OF PERSONAL COMPUTERS OPTIMIZED FOR A.I.TASKS. WE’VE SPOKE EXCLUSIVELY WITHMICHAEL DELL ALONGSIDE NVIDIA’S CHIEF AT THE CONFERENCE IN LASVEGAS. >> ALL OUR NEW:’S WILL BEA.I.P.C.’S. AND THE REASON IS THAT ANYTHINGYOU’RE DOING THAT HAS AN ADEBAYO PROMPT WILL BE SPED UPBECAUSE EVERY SOFTWARE.
DEVELOPER IN THE WORLD ISFIGURING OUT HOW TO USE ALL THIS NEW POWER IN THE G.P.U.’S,THE N.P.U.’S, IN THESE NEW A.I. P.C.’S. >> PROCESSING UNITS FOR THEUNINITIATED. >> EXACTLY.SO THAT EXPERIENCE WILL BE BETTER. WHEN YOUR P.C.IS FOUR YEARS OLD AND IT’S TIME TO GET A NEW ONE, YOU WANT TOGET ONE THAT SPEEDS UP THE NEW CAPABILITIES.AND INSIDE YOUR COMPANY, THEY’RE GOING TO WANT TO MAKESURE YOU HAVE THAT, YOU KNOW,.
THEY DON’T WANT TO BUY AMACHINE THAT WILL LAST FOR SEVERAL YEARS THAT DOESN’T HAVETHAT CAPABILITY. >> JENSEN, WHERE IS NVIDIA’SPLACE, I KNOW YOU AS GAME, I GREW UP WITH THE GAMING SIDE OFNVIDIA. DO YOU HAVE A PLACE IN THE A.I.P.C. MARKET? >> COME BACK NEXT YEAR.DOLLAR BUNCH OF NVIDIA AND DELL P.C.’S.ALL OF OUR C.P.U.’S HAVE THE SAME TENSOR CORDS THAT ARERUNNING IN THE CLOUD IS OVER ONE OF OUR G.P.U.’S USE A.I.TO DO ITS WORK. A.I.
WILL TRANSFORM GAMING, ALL THEN.P.C.’S, THE NONPLAYER CHARACTERS — >> BUT TALK ABOUTDEVELOPMENT TIME HOW IT WILL BE CUT? >> CREATING WORLDS WILL BEEASIER. INSTEAD OF INSTRUCTION DRIVENCOMPUTE, IT’S INTENTION DRIVEN COMPUTING.IT’S EASIER TO WRITE PROGRAM. PYTHON PROGRAMS WILL BE EVENEASIER TO WRITE. VIDEO CONFERENCING WILL BEBETTER BECAUSE OF IT. >> WHAT YOU DID WITH BLACKWELLAND OTHER PRODUCTS IS YOU.
INNOVATED BY SAYING LET’SCOMBINE G.P.U. WITH C.P.U. IS THAT THE NEXT ITERATION FORYOU WITH A.I., HERE’S THE NVIDIA C.P.U. THAT GOES WITH IT?>> WE WANT TO SUPPORT EVERY C.P.U. THE WORLD MAKES. THERE ARE PLACES WITH R86, WESUPPORT THOSE. OTHERS SUPPORT ARM.SO WHEREVER IT MAKES SENSE WE’LL SUPPORT THE RIGHTC.P.U.’S. HAIDI: MICHAEL DELL AND JENSEN HAHNSPEAKING TO US FROM LAS VEGAS. THERE IS ONE BIG STORY, NVIDIAAND THE ABILITY OF THIS ONE.
STOCK WHICH IGNITED THE ENTIREBROADER MARKET, IF THAT CAN CONTINUE, AS THE EXPECTATIONSFOR A.I. AND THIS STOCK IN PARTICULARKEEP BUILDING AND BUILDING AND BUILDING.THIS IS THE MAIN STORY WE CONTINUE TO WATCH.A LITTLE DOWNSIDE FOR S&P FUTURES.TRADING PRETTY FLAT AT THE MOMENT.IT IS A MIXED PICTURE IN ASIA AS WE GET INTO THE START OFTRADING IN ABOUT FIVE MINUTES. WE ARE SEEING IN PARTICULAR ALITTLE BIT MORE WEAKNESS,.
REALLY ACROSS THE BOARD WHENYOU TALK ABOUT TECH STOCKS OR INDUSTRIALS AS WELL.
