HAIDI: THIS IS “DAYBREAK: ASIA.”WE ARE COUNTING DOWN TO ASIA'S MAJOR MARKET OPENS.WHAT A WEEK IT HAS BEEN WHEN IT COMES TO YEN VOLATILITY.SUSPICION OF INTERVENTION LOOKING AT THE CURRENT ACCOUNTNUMBERS. WE DO SEE CHARACTERISTICS OFTWO BOUTS OF INTERVENTION BY JAPANESE AUTHORITIES THIS WEEK.RIGHT, BELLE. WE ARE ALSO LOOKING AHEAD TOTHE U.S. JOBS NUMBERS AFTER THAT LESSHAWKISH THAN EXPECTED PAY THAT.
WE HEARD THIS WEEK, WHETHER ITWILL FIRM UP EXPECTATIONS FOR POLICY GOING FORWARD. ANNABELLE:THAT'S RIGHT, CERTAINLY THE BIG FOCUS ON NONFARM PAYROLLSEXPECTING AROUND 240,000 GAIN FOR THE LATEST READING.SLOWEST PACE SINCE NOVEMBER, . HAIDI:AND BIG TECH IS IN FOCUS. WE WILL BE WATCHING THIS APPLEHAS EDGES AND SUPPLIERS. HE SAW INVESTORS REACTINGPOSITIVELY TO WHAT WAS RELATIVELY A MIXED BAG IN THELATEST SET OF NUMBERS.
LET'S GET YOU TO THE START OFTRADING, WE ARE ACTUALLY 10 SECONDS INTO THE START OF CASHTRADING AS AUSTRALIA COMES ONLINE.NOT MUCH TO REPORT, BUT IT HAS BEEN A DIFFICULT FEW SESSIONSFOR ALL THE STOCKS. LOOKING AT WHERE THE AUSSIEDOLLAR IS, 65.7 TWO CENTS. : WHEN IT COMES TO ETHICS.THE YEN HOLDING STEADY. BRENT CRUDE IS JUST SHY OF $84. THE ENERGY NAMES ACROSS ASIA,CONCERNS CONTINUE TO WEIGH ON THE DEMAND SIDE FOR OIL LOOKINGLIKE WE ARE SETTING UP FOR THE.
WEAKEST WEEK IN OIL PRICESSINCE FEBRUARY AS U.S. INVENTORIES WAY AND I MISSCONCERNS ABOUT OPEC+ POLICY OF MAINTAINING THEIRSTANCE, IMPACTING THESE CONCERNS ABOUT SUPPLY ANDDEMAND IN THE MARKET, BELLE. ANNABELLE:YES, AND ALSO WE HAVE AT THE START OF TRADING FOR KOREA, ASWE COME ONLINE THIS MORNING. JAPAN IS SHUT FOR THE PUBLICHOLIDAY. WE ARE POSTING GAINS AT THEOPEN. A BIT OF CURRY ON ONE STRAND.THE DOLLAR HAVING ITS WEAKEST.
SESSION OVERNIGHT — A BIT OFSTRENGTH FOR THE KOREAN WON. WHAT IS PLAYING INTO THE THEMEFOR KOREAN EQUITIES AND WAS CAN PLAY INTO THE SEA IS THAT APPLENUMBERS. LET'S LOOK AT HOW THE SOME OFTHOSE SUPPLIER STOCKS ARE COMING ONLINE THIS MORNING.WE SAW THE JUMP IN LATE TRADE IN APPLES A GAME OF 6%.SEEING SOME GAINS, AS WELL FOR SOME OF THE COMPANIES THATSUPPLY INTO THAT U.S. BIG TECH GIANT.A COMPANY POSTING STRONGER-THAN-EXPECTED SALESLAST QUARTER AND PREDICTING A.
RETURN TO GROWTH IN THE CURRENTPERIOD. A BIT OF OPTIMISM THAT THESLOWDOWN IS PERHAPS EASY.OF NEXT GUEST REMAINS POSITIVE ON GLOBAL EQUITIES WITH APREFERENCE FOR U.S. TAX. JOINING US NOW IS KIERANCALDER, HEAD OF ASIA EQUITY RESEARCH AT UNION BANCAIREPRIVEE A SU: SU: . WIT WHAT W HAVE GOD, ARE YOUOPTIMISTIC ABOUT THE OUTLOOK FROM HERE? KIERAN:WE ARE OPTIMISTIC ON EQUITIES.
AND WE HAVE BEEN LOOKING TO ADDON ANY MOVEMENTS RELATED TO WHAT IS GOING ON WITH THECURRENT RESULTS SEASON. YOU MENTIONED APPLE AND OTHERSTATE LESS BAD THAN FEARED COULD BE A STRONG SHORT-TERMCATALYST, THEY ARE OBVIOUSLY ONE OF THE LARGEST SUPPLYCHAINS IN ASIA AND WE THINK THIS WILL BE GOOD FOR THE WHOLEECOSYSTEM, PROBABLY TODAY. ANNABELLE:AND THE MOVES THAT WE ARE SEEING SO FAR IN U.S.STOCKS OVER THE COURSE OF THIS YEAR, GIVEN THE RACEENVIRONMENT WE ARE EXPECTING,.
WHERE DO YOU SEE THEEXPECTATIONS HEADING INTO THE SECOND HALF AT THIS POINT? KIERAN:WE THINK THE SECOND HALF WILL BE A STRONG PERIOD OF EARNINGSMOMENTUM. FOUR MONTHS AGO WE WOULD HAVESAID THAT WOULD BE COUPLED WITH THE BEGINNING OF RATE CUTS. WE ALSO KNOW THAT THIS HAS BEENPUSHED BACK AT LEAST UNTIL THE END OF THE YEAR.IF YOU CONSIDER THAT THE BIGGEST MISTAKE THAT THE FEDCOULD MAKE WOULD BE TO START TO.
CUT TOO EARLY AND SEE ARESURGENCE OF INFLATION. THE LATEST INFLATION PRINT HAVEOBVIOUSLY PROVEN THAT INFLATION IS STICKY. AGAINST THE U.S.ECONOMY, WHICH IS DOING PRETTY WELL.SO WE THINK THE NET EFFECT OF THAT WILL BE PRETTY GOODEARNINGS GROWTH MOMENTUM IN THE SECOND HALF OF THE YEAR ANDTHAT IS WHY WE WILL BE LOOKING TO INCREASE ALLOCATION TOEQUITIES, ESPECIALLY GROWTH. AND THAT TAKES US TO TECHOBVIOUSLY, IN THE CURRENT PERIOD. HAIDI:WOULD YOU ALSO BE LOOKING AT.
MORE INTERNATIONAL ALLOCATIONS,WITH THE BIG MOVES WE HAVE SEEN IN THE YEN, THE MULTIPLEATTEMPTS AT INTERVENTION THAT WE SEE MOST LIKELY WAS WHATPLAYED OUT THIS WEEK, ARE YOU LOOKING AT OPPORTUNITIES WITHINJAPANESE EQUITY STILL? KIERAN: YES, ABSOLUTELY.IT HAS OBVIOUSLY BEEN AN INTERESTING PERIOD SINCE THEBOJ FINALLY GAVE UP ON THAT. THE MARKET PEAKED TWO DAYSLATER AND NOW WE ARE IN THIS PERIOD WHERE BASICALLY THE BANKOF JAPAN HAS VERY LITTLE CONTROL OVER WHERE THE YEN WILLGO GIVEN THAT THE RATE.
DIFFERENTIAL VERSUS THE U.S.IS GOING TO PERSIST. SO, THE INTERVENTION, WHILE IT HAS BEENPRETTY EFFECTIVE IN DRAWING A LINE IN THE SAND AT 160, MOSTLIKELY WE WILL SEE THAT GET TESTED AGAIN. AND THE PERIOD FOR THE YEN TOSTOP WEAKENING WILL BE WHEN U.S. TRADES START TO GET CUT IN THEDIFFERENTIAL CHANGES. THE MARKET PEAKED A COUPLE OFDAYS AFTER THE END OF –. WE ARE IN A PERIOD RIGHT NOW OFFULL-YEAR RESULTS, NEXT YEAR'S GUIDANCE AND HEADING INTO THEAG M SEASON.
IT HAS BECOME A STOCK PICKERSMARKET IN JAPAN. AND WE ARE LOOKING FORWARD TOSEEING ADDITIONAL PUSH ON THE CORPORATE GOVERNANCE ANDRESTRUCTURING AND ET CETERA THROUGH THE AGM SEASON.SO WE ARE READY TO ADD ON WEAKNESS IN JAPAN AT THE MOMENT.HAIDI: HAIDI:I WANTED TO GET YOUR THOUGHTS ON THE HONG KONG RALLY.WE ARE STARTING TO SEE SIGNALS FOR THE FIRST TIME SINCE THEREOPENING RALLIES THAT MAY BE A-SHARES ARE LOOKING OVERBOUGHT.IS THAT ANOTHER FALSE DAWN WHEN.
IT COMES TO THISMARKET, OR IS IT A FUNDAMENTAL DRIVER FOR THIS RALLY TOCONTINUE? — H-SHARES. KIERAN:FOR US, OBVIOUSLY THREE YEARS OF UNDERPERFORMANCE HAVE LEFT THE MARKET AND UNDER OWNED ANDLONG-LIVED — UNLOVED. YOU HAVE TO CONSIDER THAT INTHE CONTEXT OF THE CURRENT RALLY.WE STILL HAVE AN UNDERWEIGHT VIEW ON CHINA WE THINK THEREARE STRUCTURAL ISSUES THAT STILL NEED TO BE ADDRESSED.ON THE ONE HAND, LESS BAD NEWS.
OR LACK OF BAD NEWS AT THE ENDOF A THREE YEAR'S PERIOD OF UNDERPERFORMANCE CAN ITSELF BEA CATALYST AND THAT'S WHAT WE HAVE SEEN.OUR CURRENT VIEW WOULD BE TO TAKE PROFIT INTO THAT UNTIL WESEE REAL STRUCTURAL CHANGE, ESPECIALLY IN THE PROPERTYSECTOR THAT WOULD HELP — THAT IS A PRECURSOR TO LONG-TERMINVESTOR CONFIDENCE, ESPECIALLY FOR INVESTOR CONFIDENCERETURNING TO CHINA. BUT, OF COURSE, THE STRONGESTLARGE GLOBAL MARKET BUT SO FAR THIS YEAR ON A U.S.DOLLAR BASIS HAS BEEN CHINA.
H-SHARES.WE ARE HAVING A PERIOD RIGHT NOW WHERE WE WOULD PROBABLYLOOK TO TAKE A BIT OFF. ANNABELLE:WHAT ARE YOUR VIEWS ON TENSIONS BETWEEN THE U.S. AND CHINA?THOSE ARE SET TO GO HIGHER PERHAPS IN AN ELECTION YEAR.IF YOU HAVE HIGHLIGHTED ONE OF THE KEY RISKS OF BEING THERETURN OF DONALD TRUMP TO THE PRESIDENCY.BUT WHAT ARE THE KEY RISKS THAT YOU WOULD ASSOCIATE WITH THAT?KIERAN: WELL, ANYTHING GOES WITH IT ASECOND TRUMP PRESIDENCY.
SO, [LAUGHS]I THINK IT WOULD BE SOMETHING THAT WE HAVE TO STAY CLEAR., LOOK, I THINK IT IS BECOMING A — THERE IS A REAL CHANCETHAT TRUMP COMES BACK. OBVIOUSLY, HE LIKES TO HAVE ANENEMY. ONCE IT IS NO LONGER JOE BIDEN,OR IF IT IS NO LONGER JOE BIDEN AND HE DOES GET BACK IN, WEWOULD BE VERY CAUTIOUS AROUND CHINA AND ANYTHING GOES., ON THE OTHER HAND, IT IS PRETTY EVEN, IF YOU LOOK AT THEODDS SO FAR, AND WE ARE A FEW MONTHS AWAY.SO CERTAINLY SOMETHING TO KEEP.
AN EYE ON.BUT NOTHING CONCRETE FOR NOW. HAIDI:KIERAN CALDER, ALWAYS GREAT TO CHAT WITH YOU, HEAD OF IS AEQUITY RESEARCH AT UBP. DEVELOPMENT IS CROSSING THEBLOOMBERG WHEN IT COMES TO GIP AND CPP, NEARLY A $5 BILLION DUEFOR THE UTILITY GROUP, PROVIDES ENERGY SERVICES ACROSS THE UPPER MIDWEST OF THE UNITEDSTATES , ACROSS GENERATIONS TRANSMISSION AND DISTRIBUTIONOF ELECTRICITY POWER FOR RETAIL AND WHOLESALE.WE ARE HEARING THAT THE GLOBAL.
INFRASTRUCTURE PARTNERS AND CPPPARTNERS ARE CLOSE TO A DEAL. THERE HAVEN'T BEEN ANY COMMENTSSO FAR, BUT WE WILL BRING YOU DETAILS AS WE GET THEM.STILL I HAD AT THIS HOUR, AUSTRALIA'S RETIREMENT PROGRAMMAY BE THE ENVY OF THE WORLD RIGHT NOW ARE IT STILL FACESCHALLENGES. WE WILL DISCUSS MORE WITH THECEO OF A SUPERANNUATION INDUSTRY BODY.THIS IS BLOOMBERG. ♪ HAIDI: TAKE A LOOK AT ONE OF THESTOCKS WE ARE WATCHING JUST ABOUT 10 MINUTES INTO THE STARTOF TRADING.
MACQUARIE GROUP IS DOWN 1.8%AFTER EARNINGS MISSED ESTIMATES. WEAKNESS ACROSS THE COMMODITIESBUSINESS AND GLOBAL MARKETS BUSINESS WAS A WEEKWELL, DRAGGING THE OVERALL PERFORMANCE.NET INCOME FALLING 32%. SHORT OF THE 3.6 BILLIONDOLLARS AUSSIE DOLLAR AVERAGE PROJECTION FROM THE ANALYSTSTHAT WE SURVEYED FROM WHAT WE HAVE SEEN THAT UNDERPERFORMANCEACROSS THE, SHARE PRICE IN TERMS OFTHE COMPARISON TO GLOBAL PEERS OVER THE PAST YEAR.EXPECTATIONS WERE FLAGGED FOR A.
SOFT RESULT FROM IT WE HAVESEEN SO MUCH VOLATILITY IN ENERGY MARKETS AND THATENVIRONMENT FOR M&A BEING SLUGGISH AS WELL. ANNABELLE:AND ANOTHER GROUP OF STOCKS WE ARE TRACKING THIS MORNING ISAPPLE SUPPLIERS. THEY ARE RISING ACROSS THEBOARD. UNSURPRISINGLY, APPLE ITSELF ISJUMPING IN NEEDS TRADING AFTER PREDICTING A RETURN TO GROWTHFOR THE CURRENT PERIOD. LET'S GET MORE ON THOSE NUMBERSAND BRING IN BLOOMBERG TECH.
REPORTER MARK GURMAN.WHAT'S TO DOUBT THE MOST FROM THESE NUMBERS? MARK:THE BIGGEST HIGHLIGHT WAS APPLE DID BETTER IN CHINA THANCOUNTERPOINT RESEARCH AND OTHERS HAD ANTICIPATED.THEY HAD SAID THAT IPHONE SALES IN CHINA HAD DECLINED BY 19%.TIM COOK WAS ASKED TO TRY TO SQUARE THAT AWAY ON THEEARNINGS CALL. BUT HOW COULD HE? THESE ARE THIRD-PARTY ANALYSTREPORTS MAKING A CLAIM. APPLE HAS THE ACTUAL NUMBERS.THEY DON'T KNOW WHERE THE OTHER NUMBERS ARE COMING FROM.WHO KNOWS IF COUNTERPOINT OR.
THE OTHERS KNOW WHETHER NUMBERSARE COMING FROM? THE REALITY IS CHINA IPHONENUMBERS, NOT SO HOT. BUT COOK IS SAYING THAT IT HASNOTHING TO DO WITH THE IPHONE, IT IS THE COMPANY'S OTHERPRODUCTS. THE OTHER TWO INVESTOR.WAS WEARING ACCESSORIES. IT CAME IN AT $900 MILLIONBELOW WHERE WE SET A YEAR AGO. NOT SO GREAT GIVEN THE VISIONFOR LAUNCH THIS QUARTER. SALES ARE ONLY GOING TO GO DOWNFROM HERE DURING THE CURRENT PRICINGCYCLE, ON THE CAR IN FRONT OF.
CYCLE FOR THAT PRODUCT.NOT CREATING ANY GROWTH IN THAT CATEGORY IS A LITTLECONCERNING, BUT OBVIOUSLY YOU'RE STILL IN THE FOR OF THEPRODUCT. ANNABELLE: WE SPOKE A FEW WEEKS AGO WHENYOU WERE SAYING THAT — GOING BACK TO APPLE AND CHINA, ANDREMEMBER TO GIVE YOU A COUPLE OF WEEKS AGO AND HE SAID HEFELT THAT APPLE NEEDED TO MAKE TWEAKS OR CHANGES TO ITSPRODUCT LINEUP THAT WERE SPECIFIC TO THE CHINESE MARKET.GIVEN THE NUMBERS THAT CAME THROUGH, DO YOU THINK ITALLEVIATES THE NEED FOR THE.
COMPANY TO DO SO? MARK:WHAT I BELIEVE I SAID IS THAT THEY NEED TO CREATE SOMEPRODUCTS TO REALLY CREATE A NEW GROWTH OPPORTUNITIES INEMERGING MARKETS. AS THEY EXPLAINED ON THE CALLTODAY, CHINA IS THE ULTIMATE EMERGING MARKET THAN THEY AREDOING WELL THERE FROM INDONESIA, THEY ARE GROWING,BUT THEY HAVE LIMITED MARKET SHARE FILL IN THOSE REGIONS.I SAID THAT THE UP THAT MARKET SHARE, TO GO EVEN MORE QUICKLY,THEY SHOULD RELEASE A CHEAPER FORM TAILORED TO EMERGINGMARKETS, BRING MORE PEOPLE INTO.
THE APPLE ECOSYSTEM, THEN ASTHE MIDDLE CLASSES IN CHINA, INDONESIA, VIETNAM, EASTERNEUROPE AND AFRICA EXPAND OVER THE NEXT SEVERAL YEARS, THENYOU CAN SELL THOSE CONSUMERS WHO ARE ALREADY IN THE APPLEECOSYSTEM FOR THOSE HIGHER END PRODUCTS.MY THEORY WAS NOT ABOUT CHINA IN PARTICULAR BUT MORE ABOUT AGLOBAL EMERGING MARKETS PLAY. HAIDI:WE SPOKE TO AN ANALYST EARLIER WHO PINPOINTED STRENGTHS, ONEIS OBVIOUSLY THE APPLE UNIVERSE, THE INFRASTRUCTUREAND THE LOYALTY CUSTOMERS HAVE.
THE OTHER IS AI.DO YOU SEE PROGRESS BEING MADE IN TERMS OF PLAYING CATCH UP ONAI FOR THAT TO BE A STRONG PROPOSITION FOR APPLE ANDLOYALTY TO APPLE GOING FORWARD? MARK:I THINK THE AI THREE WILL MAKE THE SYSTEM MORE STICKY.WHEN PEOPLE ARE CHOOSING TO BUY NEW PHONES AND DECIDING IF THEYWILL BUY AN IPHONE FOR ANY OTHER PHONE, I THINK THE AITEACHERS WILL PERHAPS MAKE THE IPHONE MORE INTERESTING ANDCERTAINLY MORE COMPETITIVE IN THE LANDSCAPE.BUT THEY WILL NOT SELL A TON OF.
NEW DEVICES FROM THE GET-GOBECAUSE OF THESE NEW AI INITIATIVES.THIS IS SOMETHING THEY HAVE TO DO — THEY ARE PLACATING WALLSTREET AND PLACATING CONSUMERS AND STARTING THIS NEXTGENERATION CYCLE OF SOFTWARE INTELLIGENCE IN THESE DEVICES.I THINK THIS WILL HAVE A POSITIVE OUTCOME FOR THEM.IT'S NOT SPECIFIC TO THE IPHONE, THIS IS SOMETHING YOUWILL SEE ON THE IPAD, THE MAC, THE VISION PRO, THE WATCH, ETCETERA SO CERTAINLY, THIS IS A LONG GAIN FOR APPLE AS ISEVERYTHING THEY.
DO. HAIDI:BLOOMBERG TECHNOLOGY REPORTER MARK GURMAN THERE WITH THELATEST ON THOSE NUMBERS. LET'S STICK WITH TECH.BLOOMBERG HAS LEARNED THAT HUAWEI IS SECRETLY FUNDINGCUTTING-EDGE RESEARCH AT U.S. UNIVERSITIES THROUGH ANINDEPENDENT FOUNDATION IN WASHINGTON, DESPITERESTRICTIONS OFFICIALS HAVE IMPOSED ON THE COMPANY OVERNATIONAL SECURITY CONCERNS. OUR ATTACK AND NATIONALSECURITY REPORTER HAS THE DETAILS AND JOINS US.– OUR TECH AND NATIONAL.
SECURITY REPORTER HAS THEDETAILS. HOW TO DISCOVER THAT THEY WEREABLE TO FUND THIS RESEARCH IN SECRET. >> WE LEARNED THAT HUAWEIPARTNERED WITH A FOUNDATION IN WASHINGTON, D.C.CALLED THE OPTICA FOUNDATION. THE FOUNDATION ADMINISTERED ARESEARCH COMPETITION THAT ATTRACTED TOP RESEARCHERS FROMALL SORTS OF TOP UNIVERSITIES IN THE U.S.AND GLOBALLY, AND WHAT WE LEARNED IS THAT THESERESEARCHERS, WHEN THEY WERE.
APPLYING FOR FUNDING THECOMPETITION, THEY BELIEVED THE FUNDING WAS COMING FROM THISU.S. ENTITY BUT, IN FACT, IT WAS FUNDED COMPLETELY BY HUAWEI,BUT THERE HAD BEEN NO DISCLOSURE TO THEM ABOUT THAT.ANNABELLE: NO DISCLOSURE, PERHAPS A BIT OFA GRAY AREA. BUT, IS THIS INDEED LEGAL? KATE:THAT IS ALL OF THE MOST INTERESTING THINGS IS THAT ITAPPEARS TO BE TOTALLY LEGAL. WHILE WACO IS ON SO MANYDIFFERENT LISTS IN THE U.S. FOR RESTRICTION, INCLUDING VERYSEVERE EXPORT CONTROLS THAT.
PREVENT A LOT OF– PREVENT SHARING OF TECHNOLOGY WITH THE COMPANY.BUT IN THIS CASE, THIS RESEARCH COMPETITION IS SPONSORINGACADEMIC RESEARCH WHICH IS GENERALLY MEANT TO BE PUBLISHED.AND THAT IS ACTUALLY EXEMPT FROM EXPORT CONTROLS.SO THERE IS NOTHING THAT IS ACTUALLY ILLEGAL WITH THIS, ANDI FOUND OUT TO BE ONE OF THE MOST INTERESTING PARTS OF THESTORY. HAIDI: WHAT HAVE WE HEARD FROM WALLYCOLE SPENT THE OPTICA FOUNDATION FROM IT AND HAVE WEHEARD ANYTHING IN TERMS OF THE.
ACADEMICS RESEARCHERS IN THEUNIVERSITIES INVOLVED? KATE: OPTICA HAS SAID, LOOK, WE HAVEMANY DONORS WHO WOULD LIKE TO REMAIN ANONYMOUS INCLUDING U.S. DONORS, AND MAY BE THE CASE ISTHAT, BUT THERE AREN'T U.S. DONORS ON EXPORT CONTROL LISTS.HUAWEI HAS SAID THEY WANT TO KEEP THEIR NAME OUT OF IT FORTHEIR NAME WAS KEPT OUT OF IT, BECAUSE THEY DIDN'T WANT TO– THE EVENT CAN BE SEEN AS PROMOTIONAL. AND IN TERMS OF THEUNIVERSITIES AND RESEARCHERS, I HAVE NOT BEEN ABLE TO FIND ONERELEVANT UNIVERSITY OFFICIAL OR.
RESEARCHER WHO HAD ANY IDEAABOUT THIS UNTIL I CALLED THEM. ANNABELLE:THAT WAS OUR TECH AND NATIONAL SECURITY REPORTER KATE O'KEEFE, WHO IS BEHIND THEBLOOMBERG EXCLUSIVE. LET'S SHIFT TO QUALCOMM.SHARES JUMPED THE MOST IN TWO AND A HALF YEARS AFTER ANUPBEAT FORECAST POINTING TO A REBOUND IN DEMAND FORSMARTPHONE SHAPES THE CEO TOLD US WHAT IS DRIVING GROWTH INTHE KEY CHINESE MARKET. >> THE STORY ON HANDSETS INCHINA IS PRETTY SIMPLE.
THE MARKET HAS STABILIZED, WEHAD SAID THAT A COUPLE OF QUARTERS AGO.END USERS ARE BUYING BETTER PHONES. IT IS REALLY FOR US, A STORY OFFLAGSHIP WITHIN THE ANDROID, ESPECIALLY A LOT OF THOSE BLACKSHIPS LUNCHING WITH GENAI. I THINK WE ARE SEEING THE VERYBEGINNING OF GEN AI COMING TO DEVICES, AND THAT DROVE A LOTOF THE GROWTH. IT IS 40% NOT ONLY IN THISQUARTER, BUT IT IS ACTUALLY EXPECTED TO HAVE THE SAME INTHE NEXT QUARTER AS WE LOOK AT.
THE GUIDE.IT HAS BEEN A GOOD STORY AS THE SMARTPHONE MARKET STABILIZESAND THE ANDROID FLAGSHIP HAS STAYED RESILIENCE. >> AS YOU KNOW AND OUR AUDIENCEKNOWS, WE WILL TALK ABOUT THE DEVICE WHEN IT COMES TOGENERATIVE AI. LET'S LINGER ON CHINA.LOOKS LIKE THE DOMESTIC PLAYERS THAT ANDROID FACED ARE GAININGMARKET SHARE AGAINST THE MARK — MARKET FOR IPHONE.IF YOU SEE THAT IN THE COUNTERPOINT RESEARCH DATA.IS THAT THE CASE, WHERE THE.
DOMESTIC PLAYERS ARE GAININGMARKET SHARE, WHAT DOES IT MEAN FOR QUALCOMM? >> THE WAY YOU SHOULD THINKABOUT OUR POSITION IN CHINA IN THE HANDSET MARKET, WE HAVEBEEN VERY FOCUSED ON THE PREMIUM AND HIGH TIERSNAPDRAGON. SO WHEN AN ANDROID OEM FROM OUR CUSTOMERS — SHOW ME,-SHOW MEATAND OTHERS, WHEN THEY ARE SELLING A FLAGSHIP DEVICE, NOTONLY DO WE HAVE THE MODEM CONTENT, WE HAVE THE AI ENGINEAND THE PROCESSOR AND THAT HAS.
BEEN A POSITIVE DEVELOPMENT AND HAS BEEN DRIVING THE INCREASE,ESPECIALLY WITH THE MAKE CHANGES TO OUR PREMIUM DEVICE.THE FACT THAT THE ANDROID FLAGSHIP INTRANET WITH THECHINESE OEMS HAD BEEN STABLE AND PROVEN TO BE RESILIENT ANDSEEING POSITIVE MOMENTUM, CHINESE USERS BUYING BETTERPHONES, THAT IS A GOOD STORY FOR QUALCOMM AND IT ISREFLECTED IN THE NUMBERS. HAIDI:QUALCOMM CEO CRISTIANO AMON THERE SPEAKING WITH OURCOLLEAGUES AT ED LUDLOW.
YOU CAN WATCH US LIVE AND SEEOUR PAST INTERVIEWS WITH OUR INTERACTIVE TV FUNCTION.THAT IS TV
DEAL.THE IRANIAN BACKED MILITANT GROUPS HAS IT PLANS TO SEND ADELEGATION TO THE EGYPT AS SOON AS POSSIBLE TO CONTINUENEGOTIATIONS. ISRAEL SAID IT WOULD ONLYCONSIDER JOINING CEASE-FIRE TALKS ONCE A MASS RESPONSE TOTHE LATEST PROPOSAL FOR A TEMPORARY TRUCE AND RELEASE OFHOSTAGES. TURKEY IS HALTING ALL TRADEWITH ISRAEL OVER WHAT IT THE WORSENING HUMANITARIAN TRAGEDYIN PALESTINE. ISRAEL'S IMPORTS FROM TURKEYREACHED $4.6 BILLION LAST YEAR.
AND INCLUDE MACHINERY, FUEL,FRESH PRODUCE AND FOOD. ISRAEL'S FOREIGN MINISTER USEDA POST ON X TO CALL IT THE BEHAVIOR OF A DICTATOR. U.S.OFFICIALS SAY RUSSIA AND CHINA ARE WORKING MORE CLOSELYTOGETHER ON MILITARY ISSUES INCLUDING THE POTENTIALINVASION OF TAIWAN. DIRECTOR OF NATIONALINTELLIGENCE AVRIL HAINES TOLD CONGRESS THAT BEIJING EVIDENTLYWANTS MOSCOW TO BE WORKING WITH IT ON TAIWAN.SHE SAID INTELLIGENCE ASSESSMENTS INDICATE INCREASINGCOOPERATION BETWEEN RUSSIA AND.
CHINA ACROSS ALMOST EVERYSECTOR OF SOCIETY. THAT QUICK CHECK ONCOMMODITIES. WE ARE KEEPING AN EYE ON WHATFOIL IS DOING. TRACKING A LITTLE BIT HIGHER.WE ARE BROADLY ON TRACK FOR THE BIGGEST WEEKLY DECLINE FORCRUDE SINCE FEBRUARY. THERE ARE CONCERNS OF WEAKENINGDEMAND AND THIS INCREASING SPECULATION THAT OPEC+ WILLPROLONG OUTPUT CUTS TO SHORE UP PRICES, SOMETHING THAT COULDPERHAPS BE BUILDING INTO THAT POSITIVITY A LITTLE BIT.
WE ARE A BIT WEAK SO FAR IN THESESSION, COPPER HOLDING ONTO SOME RECENT GAINS. HAIDI:TAKE A LOOK AT HOW WE ARE OPENING UP TO FUTURES INEUROPE, THIS FRIDAY SESSION SEEING A BIT OF POSITIVITY ASWE HAVE SEEN EARLY GAINS IN ASIA BOOSTED BY WHAT WE HAVESEEN ACROSS TECH STOCKS, THE REACTION TO APPLE.WE ARE LOOKING AT THE REVERSAL TO THE PREVIOUS SESSION INEUROPE. WE SAW MODEST LOSSES. HIGHER-FOR-LONGER IS STILL THEMESSAGING SWING THROUGH WHEN IT COMES TO EUROPEAN MARKETS ASWELL FROM THE FED.
WE ARE SEEING FUTURES AT 0.3%IN THE STOXX 50. GERMAN DAX FUTURES AT THE SAMETUNE. MATCH STABILITY WHEN IT COMESTO TRADING IN EUROPE AT THE MOMENT.IN ASIA, SOME UPSIDE FOR THE LIKES OF AUSTRALIA AND SOUTHKOREA. HONG KONG FUTURES ARE POSITIVEAS WE CONTINUE TO SEE SIGNS THAT H-SHARES ARE VENTURINGINTO OVERBOUGHT TERRITORY. >> A BLOOMBERG ANALYSIS OF FIGURE SUGGESTS THE GOVERNMENTOF JAPAN PROBABLY INTERVENED IN.
MARKETS ON THURSDAY FOR THESECOND TIME THIS WEEK. HOW HELPFUL IS THE ANNOUNCEMENTWHEN AND IF AND HOW THEY DID IT AND ARE BE LOOKING AT TRIGGERSAND THE THRESHOLDS AS HELPFUL GUIDELINES AS TO WHEN THEYMIGHT DO IT AGAIN? >> I'M NOT SURE, WELL, OK, SO,THE DATA ARE PRETTY CLEAR THAT THEY DID IT.IT LOOKED LIKE A DUCK, SO TO SPEAK ON EACH OCCASION, THEMOVE WAS SO RAPID AND SO LARGE. AND THEN WHEN YOU LOOK AT THEBOJ ACCOUNTS TO SHOW WHAT HAPPENED WITH WHERE THE MONEYWOULD HAVE GONE, AS IT WERE,.
THEN THAT IS THE QUACK. IT QUACKED LIKE A DUCK.AND WE HAVE SEEN THIS TWICE NOW. PUTTING SUCH FRIVOLITY ASIDE,WE ARE IN A SITUATION WHERE, IT IS NOT CLEAR THE THRESHOLDSMATTER TOO MUCH BECAUSE NOW THAT THEY'VE, PULLED THETRIGGER, THEY HAVE DECIDED TO INTERVENE FOR WHATEVER REASON,IT DOES LOOK LIKE IT GOT CLOSE TO THE SORT OF LEVEL WHERE THEYSHOULD INTERVENE BASED ON WHAT THEY HAD BEEN SAYING.IT WAS ALSO A PROPITIOUS MOMENT WHEN THEY FIRST MOVE BECAUSE ITWAS A HOLIDAY.
SO THE QUALITY WAS THIN.AND IT WAS ALSO, THEY WERE FORCED INTO IT. BECAUSE YEN TRADING HAD BECOMESO DISORDERLY. IF WE DO NOT STOP IT HERE,NEVER MIND THE LEVEL IT WILL GO TO THE LEVELS WE DON'T WANT TOSEE THAT. SO ALL OF THAT MADE A LOT OFSENSE. NOW THEY ARE LIKELY TO BE OPTING TO — TO BEOPPORTUNISTIC BECAUSE ONCE THEY START THE PROCESS THEY WANT TOGET AS MUCH BANG FOR THE BUCKS THEY ARE SPENDING AS THEY CAN.YOU CAN EASILY SEE THEM COME IN.
AGAIN AFTER JOBS TONIGHT, EVENIF JOBS IS WEAK BECAUSE THEY MIGHT WANT TO GO HERE'S ACHANCE TO DRIVE THE DOLLAR-YEN RATE DOWN THAT MUCH FURTHER.AND SO IF YOU REALLY PUT SOME DISTANCE FROM THOSE SORT OFLEVELS, ESPECIALLY BECAUSE, AS I SAID, HE INDICATED THAT THEPACE OF THE — WAS WHAT WOULD WORRIED THEM AND WHAT WOULDBRING THEM TO INTERVENE AND THEY GOT TO THAT LEVEL BUT NOWTHAT THEY HAVE INTERVENE, THE WAY THAT CURRENCY TRADINGWORKS, IT IS GOING TO BE SEEN AS THOSE LEVELS WHERE THEINTERVENE, 160, 157 ARE GOING.
TO BE SEEN AS REALLY IMPORTANTMARKERS. SO THE FURTHER AWAY FROM THOSELEVELS YOU CAN KEEP THE YEN IN THE COMING WEEKS THE BETTER THECASE IS FOR THINKING THAT THEY HAVE PUT A SOLID FLOOR UNDERTHE YEN. SIMILAR TO WHAT WENT ON LASTTIME THEY INTERVENED IN 2022, EVEN AFTER YOU MIGHT HAVETHOUGHT THERE WAS NOT — IT WAS NOT THAT NECESSARY.BUT THEY DID SUSTAINABLY DRIVE THE YEN AWAY FROM THE LEVELS ITGOT TO THEM. THEY ENDED UP HAVING TOINTERVENE AGAIN. WHY?.
BECAUSE THE POLICY AND RACEDIVERSION SET UP DROVE EVERYTHING DOWN AGAINST THEDOLLAR BUT ESPECIALLY THE YEN. SO, THEY ARE FACING THATPRESSURE. AND IN PARTICULAR, IN ASITUATION, WHERE IT LOOKS LIKE NEITHER THE BOJ NOR THEGOVERNMENT WORKING TO SEEN THE — TO SEE THE BOJ EMBARQ AT ANYRATE HIKES ANY RATE HIKES ANYTIME SOON.BUT IF THEY DIDN'T THE YEN WAS GOING TO KEEP FALLING.SO THEY DO NOT WANT TO RE-CREATE THAT SITUATIONANYTIME SOON.
AND THEREFORE, THERE'S ALWAYSTHE CHANCE THEY WILL STEP IN AGAIN TO TRY AND GIVETHEMSELVES MORE BREATHING ROOM GOING FORWARD PART >> I THINKTHEY NEED A MASCOT, AND INTERVENTION DUCK. >> INTERVENTION DUCK. WE WANT TO STICK WITH THE AVIANTHEME, BECAUSE HONG KONG STOCKS HAVE BEEN SOARING THIS WEEK.DO YOU THINK THAT CAN CONTINUE? >> WELL, YEAH, THE BIG PROBLEMFOR THE CHINA CASE IN GENERAL, WE ARE TALKING ABOUT HONG KONGGAINS, A LOT OF IT HAS TO DO.
WITH HONG KONG TRADE IN CHINASTOCKS AND LOCAL STOCKS, CHINA IS A BIG PART OF IT.THEY HAVE HAD PROBLEMS SUSTAINABLY GAINING ALTITUDEBEFORE. BECAUSE THERE ARE, THERE ARE SOIMMEDIATE FACTORS THAT CALL OUT FOR CAUTION WITH WHERE CHINA'SECONOMY IS AND BECAUSE INVESTORS HAVE BEEN BURNED SOOFTEN BEFORE. SO, WHERE WE ARE NOW IS AMONGTHE MORE PROMISING SET UPS BECAUSE THERE IS VALUATIONS HADGONE SO LOW. ALSO, BECAUSE THAT YENINTERVENTION AND THE GROUNDWORK.
FOR IT, LIKE DOLLAR STRENGTHLOOKING VULNERABLE, THAT IS IMPORTANT FOR THE YUAN WHICH ISOFF, AT LEAST, CHINA IS OFF THE LAST THREE DAYS OF THIS WEEK.BUT PRESSURE ON THE YUAN TO DEPRECIATE, HAS BEEN A BIG BREAK ON — BREAKE ON THEPOTENTIAL FOR THE POBC TO CARRY OUT EASING.IT IS HARD TO EASE NOTICEABLY IN POLICY TERMS WITHOUT SETTINGUP YUAN DECLINES. THAT IS OUT OF THE PICTURE NOW.SO, INVESTORS ARE OPTIMISTIC THAT THERE'S A TURNAROUND FORCHINA AND HONG KONG, AND ALSO.
THERE IS POTENTIAL THAT POLICYSUPPORT WILL BE GREATER GOING FORWARD. >> OUR MARKETS LIKE ASIACOVERAGE. AUSTRALIA'S $2 TRILLION — U.S. $2 TRILLION RETIREMENT PROGRAMIS PROVING ITSELF THE ENVY OF THE YEAR.AUSTRALIA'S MODEL TO SOLVE PROBLEM IN THE U.S.SOCIAL SECURITY SYSTEM. TODAY'S BLOOMBERG BIG TECHREVEALS MOST AUSSIE RETIREES HAVE MUCH LESS THAN THEY WILLNEED.
AT THE END OF LAST YEAR, ALMOST TWO THIRDS OF 60-YEAR-OLD HAD30,000 IN SAVINGS AFTER 32 YEARS OF MANDATORY EMPLOYERFINDINGS. OUR GUEST REPRESENTS CORPORATEINDUSTRY IN RETAIL AND PUBLIC SECTOR FUNDS.GREAT TO HAVE YOU WITH THIS AND IT IS A TIMELY — GIVEN THEGLOBAL FOCUS ON THE AUSTRALIAN MODEL.NO SYSTEM IS WITHOUT FLAWS, BUT IS THIS THE MOST PERFECTLYIMPERFECT SYSTEM IN YOUR VIEW? >> IT IS SOMETHING TO BEINCREDIBLY PROUD OF, I THINK.
THE NATION HAS BUILT SOMETHINGOVER ONLY ABOUT 342 YEARS THAT IS THE ENVY OF THE WORLD FOR AREALLY GOOD REASON. IT STARTS WITH SOME CENTRALPRINCIPLES THAT ARE TO BE, I THINK, MUCH SORT OF HUGGED BYAUSTRALIANS AND HELD ON TO. THOSE PRINCIPLES BEING UNIVERSE– UNIVERSALITY, AND PRESERVATION.THE MONEY IS HELD TILL THE RETIREMENT AND IT IS THOSE TWOSORT OF CENTRAL ELEMENTS OF OUR SYSTEM THAT YOU CAN FINDMISSING IN OTHERS THAT HAVE NOT MANAGED TO GET TO WHERE WE HAVEGOTTEN TO.
>> WHAT OUR GLOBAL PEERS ASKINGYOU ABOUT THE AUSTRALIAN SYSTEM? >> THERE IS A LOT OFCONVERSATION AS SPECIAL AS YOU MENTIONED FROM BOTH THE U.K.AND THE U.S. COLLEAGUES THAT ASK US ABOUTHOW WE HAVE GOTTEN TO A DEFINED CONTRIBUTION SYSTEM THAT IS NOTONLY INCREASING INDIVIDUAL'S PROSPERITY AS THEY REACH THEEND OF THE WORKING LIFE BUT ALSO INCREASING THE NATION'SECONOMIC PROSPERITY OVERALL. AND TAKING ALBEIT SLOWLY BUTCERTAINLY A BURDEN OFF THE GOVERNMENT PUBLIC PENSION.SO THEY ASK US ABOUT THE SET UP.
OF THAT. THEY ASK US ABOUT HOWAUSTRALIANS FEEL ABOUT THAT. THEY ASK US ABOUT THE POLITICSAND THE IDEOLOGIES. AND ABOUT WHO ARE THE CHAMPIONSOF THIS SYSTEM. AND IN REPLY WE TALK ABOUT SOMEOF THE CHALLENGES THAT IT STILL HAS BECAUSE IT IS GOOD TO SEEOTHER NATIONS BEING ABLE TO BUILD A ROBUST SYSTEM THAT THEYCAN — LEARN FROM SOME OF THE THINGS WE HAVE HAD TO WORKTHROUGH. AND WE TALK ABOUT HOW, THOUGH,IT IS REALLY WELL LOVED IN AUSTRALIA, I THINK AND I THINKPEOPLE ARE, AS WE OFTEN TALK.
ABOUT THIS ENGAGE WITHSUPERANNUATION, I THINK INCREASINGLY PEOPLE KNOW IT ISTHERE. THEY KNOW WHAT IT IS THEREFOREAND THEY EXPECT US ALL TO DO OUR JOBS IN PROTECTING IT ANDHELPING IT GROW. BUT THE SYSTEM ITSELF NEEDS TOSHAPE TO OUR MODERN WORKING LIFE AS WELL.AND THOSE ARE SOME OF THE SMALLER CHALLENGES THAT WE HAVEIN FRONT OF US, EVEN THOUGH WE HAVE THIS REALLYWELL-CELEBRATED AND WORLD-CLASS SYSTEM.
>> MARY, YOU MENTIONED SOME OFTHE CHALLENGES THAT YOU HAD THE AUSTRALIAN SUPERANNUATIONSYSTEM HAD TO JUMP OVER. CAN YOU ELABORATE MORE ON THOSEAND REFLECTING MORE OF THE MODERN DAY WORKING IN MODERNLIFE? >> WELL, IN THE CENTRALCOMPONENTS OF THE SYSTEM, I TALKED ABOUT PRESERVATION ANDTALKED ABOUT UNIVERSALITY. ONE OF THE OTHER THINGS THAT WEREALLY NEED TO FOCUS ON IS EQUITY.A AS A CENTRAL TENET OF THE SYSTEM.EQUITY CAN BE DELIVERED, SO.
EQUAL OUTCOMES FOR PEOPLE IFTHE SUPERANNUATION SYSTEM IN RETIREMENT INCOME SYSTEM BETTERREFLECTS THEIR WORKING LIFE. SO, WHEN IT WAS DESIGNED, WEHAD WORKFORCE PARTICIPATION THAT WAS PRIMARILY BASED ONTHAT TYPICAL MALE MODEL WHERE A PERSON'S REMAINS ATTACHED TOTHEIR EMPLOYER FOR THE DURATION OF THEIR WORKING LIFE AND THENTHEY STOPPED WORK AND THEN THEY START RETIREMENT. AND I THINK IF YOU LOOK AROUNDSOCIETY NOW, THAT IS REALLY NOT REFLECTIVE OF THE WAY MOSTPEOPLE INTERACT WITH THEIR.
WORKPLACES.AND EVEN THEIR VOCATIONS, THE WAY THEY WERE, ESPECIALLY TRUEWHEN YOU THINK ABOUT THE PEOPLE WHO OVERWHELMINGLY TAKE TIMEOUT OF THE WORKFORCE TO ADD ECONOMICALLY TO THE COUNTRY INAN UNPAID CAPACITY. WE MIGHT BE LOOKING AFTERELDERS, MIGHT BE RAISING CHILDREN, AND IN THAT SENSE,THAT IS OVERWHELMINGLY DONE BY WOMEN.AND SO, THAT IS NATURALLY GOING TO HAVE WORSE OUTCOMES WHEN ITCOMES TO RETIREMENT. IN A NATION SUCH AS OURS, WHEREWE ARE PROSPEROUS AND WE ARE.
LUCKY AND WE HAVE BUILT A GREATSYSTEM, WE DO NOT WANT THE FACE OF POVERTY IN RETIREMENT TO BEA WOMAN WHO IS DEDICATED SOME OF HER LIFE IN AN UNPAIDCAPACITY TO THE REST OF US. THAT'S SOMETHING TO WORK ON.THEN WE'VE GOT THIS CONCEPT OF RETIREMENT, EACH WEEK WE –WEARE REALLY TURNING OURSELVES TO NOW. >> I GUESS PERHAPS NOT EVERYONEHAS ENOUGH MONEY TO CONFIDENTLY RETIRE ON, BUT GIVEN THE POOLTHAT PEOPLE ACTUALLY DO TAKE OUT OR EXTRACT AT THE END, ISTHERE ENOUGH EDUCATION, I.
GUESS, THAT IS BEING DONE SOPEOPLE KNOW HOW TO SPEND THEIR MONEY WISELY AND REALLY TRY TOMAKE IT LAST FOR A LONGER TERM? >> WE CAN ALWAYS DO BETTER WITHHELPING PEOPLE MAKE THE MOST OF THE SETTINGS THEY HAVE GOT INRETIREMENT. THAT COMES TO WHETHER OR NOT WECAN, PEOPLE CAN ACCESS ADVICE OR HELP IN SUCH A WAY THAT ISMEANINGFUL, COST-EFFECTIVE. THERE ARE A RANGE OF OUTCOMESIN RETIREMENT. AND SUPERANNUATION WASN'T EVERMEANT TO COMPLETELY REPLACE THE GOVERNMENT AGE PENSION.
AND IT IS TO SUPPLEMENT WHEREIT'S STILL NEEDED, AND SO WE HAVE HAD TO SORT OF, YOU KNOW,EASE OFF IT A LITTLE BIT IN TERMS OF, THAT IT IS, IT ISDEFINITELY HELPING PEOPLE'S DIGNITY, AS THEY FINISH THEIRWORKING LIFE. WE CAN DO BETTER AT TALKINGWITH THEM ABOUT WHAT IT IS THEY WANT TO DO.IN THEIR POST WORKING LIFE. AND HOW THEY MIGHT WANT TOSPEND THEIR MONEY. AND HOW TO MAKE THAT LASTLONGER, BUT ALSO, WHAT ROLE THE GOVERNMENT AGE PENSION HAS INTHAT AS WELL.
>> THE CEO AT THE ASSOCIATIONOF SUPERANNUATION FUNDS OF AUSTRALIA JOINING US FROMMELBOURNE. APPRECIATE YOUR TIME. SUBSCRIBERS CAN GET MORE ONTHAT BIG TAKE ON THE TERMINAL, NI BIG RTAKE.BLOOMBERG.COM HAS IT IS A WELL. MORE TO COME ON DAYBREAK ASIA.THIS IS BLOOMBERG. ♪ >> TAKE A LOOK AT ONE OF THESTOCKS WE ARE WATCHING. REALLY ESSENTIALLY A RAISEAMONG ALL THE LOSSES — ERASING ALL THE LOSSES, THE BANK DIDREPORT A STEEP 32% DECLINE. PAUL ALLEN IS WITH US FOR MOREANALYSIS.
THIS WAS PRETTY WELL FLIGHT. >> IT WAS — WELL FLAGGED. >> IT WAS.MCCOURY SAYS IT WAS NOT GOING TO BE A GREAT YEAR.$3.5 CASH PROFIT WAS AMISS AS WELL.THE COMMODITIES PART OF THE BUSINESS, THE 47% DECLINE INTERMS OF ITS CONTRIBUTION TO NET PROFIT THERE'S BEENSUBSTANTIALLY LOWER INVENTORY MANAGEMENT ACCORDING TOMCQUARRIE, TRADING HAS BEEN DOWN AND IT IS THE SAME STORY.
FOR INVESTING, 48 F%, A WEAKENVIRONMENT FOR DEALMAKING AND M&A ON THE REST OF IT.MCQUARRIE DID NOTE THAT THERE IS A LOT OF UNCERTAINTY ANDSOME — THE DIVIDENDS LOOK PRETTY GOOD ON THE FACE OF IT 385 A SHARE. A 40% DECLINE. ALL IN ALL IT WAS A DIFFICULTYEAR FOR MCQUARRIE. >> DID IT LOOK A LITTLE BITMORE OPTIMISTIC THAN WHAT WE GOT FROM THE GUIDANCE, DO YOUTHINK? >> WELL, WE WERE CLOSELYWATCHING FOR THE GUARDIANS, THINKING WE WILL GET A PRETTY.
GOOD — YEAH, VERY LIGHT ONSPECIFICS APART FROM THE STATEMENT, THE CEO SAYINGMCQUARRIE REMAINS WELL POSITIONED TO DELIVER SUPERIORPERFORMANCE IN THE MEDIUM TERM. SO, PLENTY OF ROOM FORINTERPRETATION THER EAND NOT A GREAT DEAL OF DETAIL BUTMCQUARRIE SAYING IT IS MAINTAINING HIS CAUTIOUSSTANCE, LOOKING AT HIGH INFLATION AND HIGH INTERESTRATES AGAIN. NOTHING WE DID NOT REALLYALREADY KNOW. CONSPICUOUS BY ITS ABSENCE ANYMENTION OF AIR — ONE OF.
MCQUARRIE'S BUSINESSES,INDUSTRY WATCHERS HAVE BEEN THINKING MAYBE THEY MIGHT SELLIN THE COMING 12 MONTHS. IT HAS AN 88% STAKE IN THEBUSINESS THAT IT BOUGHT FOR $3 BILLION LESS BLOOMBERG ESTIMATEHAD — CLOSER TO U.S. $8 BILLION IN IF WE SAW SALE OFTHAT BUSINESS IN 12 MONTHS IT WOULD BE A BIG HIT FOR THEBOTTOM LINE AND PERHAPS THAT IS WHY WE SING A LITTLE BIT OF ITSEESAWING IN THE SHARE PRICE THIS MORNING. >> AS THAT IS PAUL AND SYDNEY.LET'S GET MORE STORIES WE ARE.
FOCUSING.SONY AND APOLLO ARE MAKING A $26 BILLION BID FOR PEARMANGLOBAL. SOURCES SAY THE OFFER IS ANONBINDING EXPRESSION OF INTEREST AND IT ALL CASH OFFERFOR PARAMOUNT SHARES AND THE ASSUMPTION OF DEBT.PARAMOUNT HAS BEEN WEIGHING A MERGER FROM DAVID ELLISON, THEHEAD OF SKY DANCE MEDIA. BLOOMBERG'S LEARNED THAT NOMURAAND MIZHUO ARE FACING POTENTIAL LOSSES. ALL BLUE MADE SHORT BETS EARLYTHIS YEAR AND WAS ALLEGEDLY.
UNABLE TO SELL O– TO SETTLETHE TRADES. THE SIZE OF THE LOSSES RAISESQUESTIONS ABOUT RISK MANAGEMENT AT TWO OF JAPAN'S LARGEST BANKS.HONG KONG SECURITIES WATCHDOG HAS LAUNCHED CRIMINALPROCEEDINGS AGAINST HEDGE FUND SEGANTI CAPITAL MANAGEMENT, ITSFOUNDER AND A FORMER TRADER. IN ONE OF THE MOST HIGH-PROFILEFINANCIAL PROSECUTIONS IN THE CITY, THE SEC ALLEGES IN CITINGDEALINGS OF INVESTOR COMPANY DEALINGS BEFORE A 2017 BLOCKEDRAPIER THE CASE WILL RETURN TO COURT ON JUNE 12TH.
ADANI ENTERPRISES HAS RECEIVEDQUESTIONS OVER POSSIBLE VIOLATIONS.ACCORDING TO AN EXCHANGE FILING, THE FIRM GOT TWO SHORTCOURSE NOTICES OVER ALLEGATIONS OVER RULES OF NONCOMPLIANCE.OTHER UNITS ALSO RECEIVE NOTICES.ADANI POSTED A 38% SLUMP IN PROFIT LAST QUARTER.BY ONE TIME CHARGES AT ITS AIRPORT UNIT. >> AND WE WANT TO KEEP AN EYEON SHARES OF MGM CHINA WHEN TRADING IN HONG KONG GETSUNDERWAY FOR THE PARENT COMPANY.
OF MGM RESORTS INTERNATIONALHAD GAINS AFTER FIRST QUARTER SALES BEAT ESTIMATES. THIS YEAR — THEIR CEO TOLD USTHERE AGGRESSIVE APPROACH TO CHINA IS — THEIR AGGRESSIVEAPPROACH TO CHINA IS PAYING OFF. >> A COUPLE OF OUR MARKETS, WEQUESTION, WE CHALLENGE, IS THERE GOING TO BE GROWTH THERE,WHAT ARE THE CAPITAL REQUIREMENTS?WE PROBABLY WILL DO SOMETHING BUT TIME WILL TELL. >> WHEN YOU LOOK AT THE EXCESSCASH REPORTED, IT IS ABOUT .2.
BILLION.IT RAISES THE QUESTION, WOULD YOU CONSIDER ACQUISITIONS ATTHIS POINT, PARTICULARLY WHEN IT COMES TO EXPANDING YOURDIGITAL PRESENCE ONLINE SPORTS BETTING? >> UM, WE SEE BRICK-AND-MORTAR,I THINK LESS SO. WE ARE MORE INTERESTED IN NEWJURISDICTIONS THAT HAVE REAL GROWTH.WE ARE BUILDING IN JAPAN. AND THAT WILL TAKE A GREAT DEALOF OUR CASH OVER THE NEXT COUPLE YEARS BUT WHEN WE THINKABOUT DIGITAL, WE SEE THAT AS.
— WE HAVE A PARTNERSHIP WITHTHAT MGM DOMESTICALLY BUT WE INVESTED TIME, ENERGY AND MONEYAND WILL CONTINUE TO DO SO INTERNATIONALLY THROUGH OUR REAL VEGAS ACQUISITION AND WE HAVE A GAMING COMPANY THATPROVIDES CONTENT AND INTERNET BUSINESS.WE ARE LOOKING FOR OTHER BOLT-ONS THAT WOULD MAKE ITMAKE SENSE. WE ARE VERY INTERESTED IN LIVEDEALER, PROPOSITION WE WOULD LIKE TO MOTIVATE HERE FROM LASVEGAS AND BROADCAST TO THE REST OF THE WORLD TO IT WE THINK ITCAN BE MEANINGFUL OVER TIME.
AND SO, WE ARE GOING TOCONTINUE TO INVEST INTO THAT SPACE.AND RELATIVELY AGGRESSIVELY BUT REALIZING THOSE ARE NOT MASSIVECAPITAL ALLOCATIONS ARE CAPITAL OUTLAYS, WE ARE MORESTRUCTURALLY GETTING A BUSINESS RIGHT FOR LONG-TERM GROWTH. >> WE DO NOT HAVE MUCH TIME BUTWE HAVE NOT TALKED ABOUT CHINA AND WE HAVE TO TALK ABOUT WHATIS GOING ON IN MACAU WHERE YOU RECENTLY GAINED SHARE, A LOT OFPEOPLE GOT EXCITED TO SEE THOSE DETAILS IN THE REPORT THISMORNING.
WHAT DO YOU ATTRIBUTE THAT GAINTO? IS THAT THE OVERALL PIE GROWINGAND THAT RECOVERY STILL GOING ON, OR ARE YOU ACTIVELY TAKINGSHARES IN THAT MARKET — OUT OF THAT MARKET? >> WE CAME INTO THE PANDEMIC ATABOUT 8% OF THE MARKET AND WE SIT IN THE MID- TEENS.THIS LAST QUARTER WERE 17%. WE HAVE BEEN AGGRESSIVE IN THECONTEXT OF WHAT WE HAVE DONE TO THE PROPERTIES, WHAT WE HAVEDONE TO THE LAYOUT, HOW WE HAVE APPROACHED A NEW ERA WITHOUTJUNK IT OPERATIVES.
WE HAVE HAD OFFICES ALL OVERTHE GLOBE, AND THE FAR EAST FOR 30 YEARS.AND SO, OUR ABILITY TO LEVERAGE INTO OUR OWN SYSTEMS TO GETCUSTOMERS DIRECTLY AND UNDERSTAND THEIR WANTS ANDNEEDS AND DESIRES, WE THINK IS SOMEWHAT UNIQUE AND IT ISPAYING OFF. AND YOU CAN SEE THE RESULTS.WE JUST HIT IN OUR QUARTER, $300 MILLION IN CASH SLOW, ANALL-TIME RECORD AND WE BELIEVE THAT WE CAN SUSTAIN THIS LEVEL– IN CASH FLOW. >> THAT WAS THE MGM CEO ANDPRESIDENT BILL HORN BOKO.
SPEAKING WITH BLOOMBERG.AND BE SURE TO TUNE INTO BLOOMBERG RADIO TO HEAR MOREFROM THE DAY'S BIG NEWSMAKERS AND GET IN-DEPTH ANALYSIS FROMTHE DAYBREAK TEAM. BROADCASTING LIVE FROM OURSTUDIO IN HONG KONG. YOU CAN LISTEN VIA THE APP ORON BLOOMBERGRADIO.COM. PLENTY MORE AHEAD. STAY WITH US. >> A LOOK AT HOW WE ARE FARINGIN OUR INTO THE START OF TRADING.OF COURSE, IT IS A HOLIDAY SESSION WITH JAPANESE STOCKSNOT TRADING TODAY.
WE DID SEE A SOFTER FINISH TOTHE FIRST SESSION, THE KOSPI UP BY HALF A PERCENT, LIFTED BY ALOT OF THE — GOOD REACTION ACROSS THE PLAYERS WHEN ITCOMES TO WHAT WAS ULTIMATELY A MIXED BAG FOR EARNINGS BUT SOMEOF THE OPTIMISM WHEN IT COMES TO THE CHINESE MARKET AND THEGROWTH TRAJECTORY GOING FORWARD CAME AS A SIGH OF RELIEF FORMANY INVESTORS THAT HAVE GOTTEN USED TO QUITE A BIT OF DOWNSIDEHEADLINES AND SENTIMENT FOR APPLE ACROSS ITS KEY MARKETS.HER EIN AUSTRALIA WE ARE SEEING THE ASX 200 UP BY A HALF OFPERCENT.
CONSUMER DISCRETIONARY, ONE OFTHE OUTPERFORMER'S FOLLOWING ON THE BEHALF — ON THE BACK OFCORPORATE EARNINGS OPTIMISM, SEEING KIWI STOCKS, LITTLECHANGED AT THE MOMENT AFTER TRADING A LITTLE BIT SOFTER. 153.10 AMIDST MORE EVIDENCEBUILDING WE DID SEE A SECOND ROUND OF INTERVENTION THIS WEEKBY THE BANK OF JAPAN. >> THAT'S RIGHT.SOMETHING TO BE TRACKING VERY CLOSE WE GET THE OFFICIAL DATABUT AS YOU SAID THAT FOCUS COMING DOWN TO APPLE INTHESESSION AND THE BETTER NUMBERS,.
MIXED REPORTS, AND SOME SECTORSPERFORMING BETTER THAN, SERVICES FOR INSTANCE, VERSUSWEARABLES, WEAKNESS, IPHONE SALES AND A BIG WATCH BUTTRACKING SUPPLIES WHEN THE HONG KONG SESSIONS OPENS IN HALF ANHOUR'S TIME FROM NOW. BUT THEY'RE THE ONES IN FOCUSFOR US, MAINLAND CHINA IS SHOT FOR ANOTHER SESSION TODAY — ISSHUT FOR ANOTHER SESSION TODAY. THE FOCUS ON HONG KONG AND THATOUTPERFORMANCE WE HAVE SEEN OVER THE COURSE OF THIS WEEK.THAT STOCK RALLY SHOWING NO SIGNS OF LETTING UP AT THISPOINT IN TIME BUT JUST TAKING A.
LOOK AT THIS RSI.BECAUSE YOU ARE TOPPING 70 AND THE QUESTION IS WHETHER WE ARESEEING THIS SORT OF CONTRACTION STARTING TO COME INTO THE
