dram accounts for more than 70% of micron's business.announced during the time of announced during the time of the pandemic, we developed and just a few weeks ago, we announced our alpha dram technology nodes, the most advanced by any supplier in the world. micron during the pandemic has been working hard on positioning itself to emerge stronger as the industry leader on dram, which we are now ramping up into production and will be continuing to do so through the remainder of this year as well as next year. we actually made some capex investments that we made at the peak of the pandemic in 2020, knowing this is what will be needed in meeting growing demand. however, no question growing demand from all segments of the end market, intelligence edge and smart user devices, all of these are requiring more dram memory. yes, dram is in tight supply at this point, and we expect supply shortages to continue to be tighter through the rest of the year as well. as we look ahead at 2022 as well, we see that the world economies will be rebounding, an

hear the server dram contract is -- having said that, starting to hear the server dram contract is movingo in my mind, that's the first sign we have really bottomed on the dram side. spot pricing the last couple of weeks is starting to rebound. large cloud customers, who are an important point of demand for dram, have increased their buying. while there's not quite as much visibility there, yes, i think we have seen a bottom. paul: we have micron shares up 60% from their july. how much further do you think they have to run? >> i have a price target of 65, which is about nine times my prior eps estimate. that, however, only assumes gross margins in the mid-40 range. last cycle, the margins topped out at 60%, so i would say there is certainly room to move up in the mid 60's, and if you have a relatively strong cycle this time around, i think my estimates could certainly go up from where they are right now. taylor: matt bryson of wedbush. thank you for joining us straight from that analyst call. plenty more global stories when we return. this is bloomberg. ♪ taylor: now to our weeklong serie

we do expect the dram price to bottom out at some point.eason for that is because it has three major players and it has invested interest in all of them to bump that price back up. at this stage, we are looking at outlook. to --d not the place expect the price to bottom out until 2020 at the earliest. the rebound would have to follow that. paul: something else the market did not anticipate was this growing tension between japan and south korea. we have japan restricting some access to some of the materials needed for semiconductors. to what extent is that going to affect samsung and sk hynix? yes, it will have a major impact on those two companies, but also, lg, as well with lg display. the components japan is talking ,bout, imposing restrictions also applies to displays as well. samsung is in a strange position where it has both of those components as a key part of its business where sk hynix and lg may be exposed to one of them. , evenas not expected though japan and south korea did not necessarily have the most productive g20 summit toge

>> dram accounts for more than 70% of micron's business.e announced during the time of the pandemic, we developed in just a few weeks ago, we announced our dram technology notes, the most advanced by any supplier in the world. -- dram technology nodes. micron has been working to position itself stronger, and we are now ramping up into production and will be continuing to do so through the remainder of this year as well as next year. we actually made some capex investments knowing that is what would be needed in terms of demand. however, no question that all sectors are requiring more dram memory. yes, dram is in tight supply at this point, and we expect supply shortages to be tighter through the rest of the year as well. as we look ahead at 2022 as well, we see that the world economy will be rebounding, and the secular demand trend -- again from data sectors to smartphones to pc's to automobiles to intelligent devices -- this trend will continue on, driving more need for dram memory. we hope this continues to bring technology nodes to conti

>> dram, samsung electronics, the dram margins are very healthy. consensus will say they will peak around second quarter if not first quarter. memory.viously, is we don't get shoo short-term. we are looking at applications like big data. as well.xample, if you can add computers or circuits which can essentially algos large l goes -- simultaneously, you will need more memory. run yearas had a big to date and luster as well. there will be an equilibrium. i don't want to predict the dram price, but nonetheless, margins are strong at the moment. >> financials. when do we see that group of names rebound? you look at this tax thing and the u.s.. it is -- in the u.s.. the yield curve, it is not conducive to net interest margins. week -- d meats next meets next week. the question will be, how hawkish with a commentary be? thenext two years, three, forward yield curve is interesting. asia, a lot of the countries, thanks specifically, -- banks specifically, are closely correlated to the rate. banks look at philippines or korean banks, i think it is interesti

think the dram problem is surmountable. cuts they have in place could potentially offset growing demand from the cloud. we are a little more skittish on nand. the reason for that is basically this is a commodity industry where supply and demand balance drive pricing, which in turn drives revenue and profitability for companies like micron, samsung. the interesting thing is the cloud server demand has been lumps. to buy in we are in the dark period right now. we are hoping demand comes back in the second half of 2019. in the case of nand, which is the memory used to store images c., itdeos and music, et is heavily driven by the mobile phone segment. there high-end phone demand is weak and high-end phone capacity is a very high. we think nand has a bigger problem than the ram -- then dram, but we are concerned supply cuts are insufficient to balance supply and demand in the second half of 2019. guy: before we come back to the subject, this is worth highlighting. we just had breaking news over the last minutes. the ex-presiden

a shift in newer dram products in dr five. higher pricing, higher gross margins there.omes down to a conservative management take. haidi: as you say conservative guidance suggests more of a meaningful recovery come 2025. in the interim do you think they could serve dead surprise to the upside managing expectations for the next year to the lower end? matthew: they do not really explicitly give us 2024 guidance. they do talk to some broader trends. but, i mean, in the past month, month and a half alone we have seen noun pricing on the spot market move up 20%-20 5%. generally, we do see relatively rapid shifts in memory when fundamentals start to turn. when you have more demand and less supply. so, i think we are starting to see those trends in the memory markets and so i guess i see a recovery through this fiscal year. certainly, when you look at the cloud, customers who are a large portion of their end market, there, the recovery may come a little later and it made -- might be more like q2, q3, calendar 24. i think even then what we are seeing now, again, dram pricing hi

on the dram side, it is slightly more difficult to call. am starting to hear that server dram contract is moving up. in my mind, that's the first assigned that we have really bottomed on the dram side. spot pricing over the last couple of weeks is starting to rebound. cloud customers, who are an important point of demand for dram, have increased buying. while there is not quite as much visibility there, yes, i think we have seen a bottom. taylor: that was matt bryson of wedbush securities. tesla shares soared to a record high this week, hovering near elon musk's goal of $420 per share. you may recall that back in august of 2018, he tweeted that he sought to take tesla private at four dollars to cents per $.20 -- four dollars and -- $4.20 per share. i talked to story, bloomberg's craig trudell. >> you do have a lot of electric vehicles, just cars in general that are priced, even premium cars priced below where you see the tesla model three. when the price came out for the made in china model three, i think it caught a lot of people by surpri

it is all about dram, dynamic random access memory. into computers, electronics, accounts for more than 70% of micron's revenue. morgan stanley is concerned about where that market is heading. to have that concern pop-up at a time when, as you mention, companies increasingly have to wait for their chip orders, that certainly gets your attention. in the dram market, prices are kind of flat the last few months, which tells you there is perhaps not the same sort of supply-demand imbalance we are seeing in chips more broadly. not everyone figures the dram market is headed for a fall. rosenblatt securities figures the issue is overblown. when you look at analysts, micron has 28 by ratings, six holds. clearly, analysts are very positive on this company, even with the backdrop being what it may be for these dram chips. amanda: how has the morgan stanley call and other sentiment issues -- because we have seen chip stocks falling for a couple of days as a group. what is driving it, how is it playing across the space? dave: no question. the phil

scarlet: people want to look at the dram part of the business.ceived earnings from two big ai chip related companies. it has been fairly mixed. to some extent that reflects how sentimental were these ai plays and this ai narrative has stalled. how high or low do you think expectations are? how high or low is the bar following what we heard from nvidia? melissa: it will be really interesting. the goal will be for them to meet or exceed expectations and provided outlook that exceeds where the current market is in terms of consensus. what i have been seeing in the space is companies that do not do that have really not seen much movement in their stocks or may even see some downward pressure in the stock price. scarlet: how specific do you expect micron to get when they given outlook? that has been one of the knocks against these companies. they will be generally optimistic rather than pinpoint optimistic. melissa: it is hard to call that. i will be listening on the call to hear specifically about what they said about next quarter and what they expec

it has been these salmon in dram and ram over the last few years -- these are famine in dram and ramr sublimely market. joe: something structurally that makes it difficult for new suppliers? >> you have much more rational players in the market. fewer players in the market. they concentrated supply market and concentrated consumption. for a host of reasons, it points to more rationality in the industry and supply being less than demand. that said, all it takes is one large supplier being highly irrational for a short time that could throw things out of work. -- whack. to crush prices but we are not thinking that will happen. more positive than most, even in ram through 2018. joe: let's talk about the secular supply demand boom happening already. it is intuitive to say our cars will have way more chips in the future, particularly as they go autonomous, what is -- how much more demand are we talking about 5, 10 years out for this industry overall? >> this is an industry that grows low single digit year on year from an annual revenue perspective. you have three distinct camps. memory log

on the dram side, it is slightly more difficult to call.aving said that, i am starting to hear that server dram contract is moving up. that is the first sign that we have really bottomed on the dram side. over the last couple weeks they are starting to rebound. large cloud customers which are important -- they have increased their buying. while there is not as much visibility there, i think that we have seen a bottom. bryson.that was matt soared to aey record high this week, hovering near elon musk's goal. you may recall that back in august 2018, he tweeted that he sought to take tesla private at 420 a share. most recent stock surge came from a report that tesla is considering cutting the price of its china belt model three by 20% or more. more on that story, i talked to bloomberg's greg trudeau. electricve a lot of vehicles and cars in general that are priced below where you see the tesla model three. when the price came out for the made in china model three, it caught a lot of people by surprise because it is not that big of a difference.

dram specifically, yes.lieve it is a combination of both demand declining and falling confidence. i think a lot of the market did not anticipate that disruption because of the trade issues. the supply chain got disrupted. dram is a terrible market. the facebook's of the world went out yesterday and spread the blame. david: shipments fell last year. to they continue to fall this year? does that affect pc shipments? does the dynamic relationships to hold? >> there was a 7% decline in all units, largely driven by china. china is about 400 billion out of the 100 billion market. china's problem was less to do with what happened in the fourth quarter. seeing six quarters of declining smartphone volumes in china. they all went into 216 and 2017 with aggressive promotion. the chinaecasting -- it should have stabilized. can it go to 385? yes, it definitely can. flat, you start getting stabilization. apple has 10% decline in units. david: what to the apple numbers tell you. we do watch them very closely because of the

in white, we are looking at the memory,ry -- at dram the kind that goes into computers.ing back to 2014, the cycle of dram going down, the stock going down, and then in 2016, the bottom end. dram started to trend back down well ahead of the stock in 2018, but that appears to be putting in a bottom, so lots of hope there. on earnings, but what do they say about the outlook? abigail: interestingly, they guided a little softer for their fiscal fourth-quarter that they will be reporting at the end of september. i say that because it is down 86% from the fiscal fourth $.46 perf 2018, at share. look at that fiscal fourth quarter of 2019 and the first quarter and second quarter of 2020. it looks like a lobar. in addition, the company indicated that the dram memory we were talking about, there's the idea that maybe excess inventories are going to be removed. so again, returning to the idea of that roller coaster chart we were looking at, investors want in on the possibility that we are at the bottom of a cycle that is going to start to move higher. perhaps the stock will go sign

dram and micron went up. last year, dram started to take down.see dram back down towards those 2016 lows. let's check in on more global markets. we are going to see the stoxx 600 tech sector really not participating in what we are seeing in the u.s.. the nikkei had a down session. crude oil bouncing higher on a positive report out of the api. gold getting a bit of a breather, down 1.1%. no breather insight for bitcoin. let's take a look at a year-to-date chart. this is really pretty extraordinary. a parabolic uptrend, up 250%. according to physics, at some. point this will not hold think about gold -- at some point, this will not hold. think about gold and silver in 2011. guy: it will be interesting to see how this one ends again. we will watch with interest. thank you. coming up, we hear from the mayor of orlando, florida on how the city's massive growth is affecting its fiscal health. that is next in muni moments. this is bloomberg. ♪ guy: from london, i'm guy johnson. vonnie: from new york, on vonnie quinn. this is "bloomberg markets." guy: ah

shows essentially dram pricing, dynamic random access memory. that is what we talk about when we talk about memory in a computer. in the most recent quarter and mix up around two thirds of micron's revenue. you can see dram prices have been falling, and they historically tend to fall as new technology capacity comes into the market. what is interesting, look at the blue line. micron shares have gained traction in recent weeks. you have seen a number of people on wall street saying look at the second half of 2020 and the key themes we talk about when it comes to chipmakers. increased spending on data sensors, i.t. infrastructure, and new phones that should drive a rebound in dram pricing, and that should ultimately, analysts say, lead to increased profit for micron any long-term. a beat on the top and bottom line and the fiscal first quarter. looking like a worrying picture for fiscal second quarter. we will want to hear more about that on the core -- on the call, as well as huawei. we want to know whether micron can do business with huawei going

>> you know, taylor, i think it might be, because, as you mentioned, we have seen dram prices in therter were down, total dram revenue, and as you mentioned, ticking down from the last four or five quarters, and the expectation in terms of analysts was it would pick up again, and at least based on the remarks coming out from micron that they had with the results, it is not showing the type of improvement we were hoping for. you know what i mean? it is a continuation of the same , a lot of uncertainty around tariffs and huawei, so you could make the case analysts were a little ahead of themselves in terms of predicting that inflection point and things will start backing off again. taylor: what is the bottom-line impact from trade and tariffs? release,taylor, in the they talked about the relationship with huawei, concerns about getting an one department to continue to sell into that company. you have to realize micron's technology, of all the semiconductor stocks, drives 50% of revenues out of china, so they are very, very heavily entrenched in that debate, so because of that that is a

capre expecting the first continual decline in dram prices after the fall in 2018.is combined with sluggish demand coming for smartphones across the industry from apple to samsung. keep in mind new products from samsung are expected to be a little bit delayed with the new 5g galaxy 10 coming in the first half. and lest we have spoken to do not necessarily expect that to offset the weakness we are seeing in dram. whether they will cut capital expenditures, we've heard from the two other major players in the memory space. ity are cutting capex to alleviate concerns about oversupply in memory. we did get it when he 7% cut in 2018 from samsung. we expect them to also address the issues in overcapacity going forward. haidi: an interesting take on bloomberg intelligence saying forstors may be forgiving samsung this quarter. what is the logic behind that? bloombergo into the terminal and you can follow that why investors have been a little bit optimistic after what was a ski slope downward in 2018 that coincided with the dram price fall. the msci asia-pacific index rallyin

there have been phones announced with dram content as high as 12 gigabytes.ven $300 5g phones have six gigabytes of dram gigabytes in them, where before they averaged four. in 2020, a couple hundred million of 5g smartphones are expected to be sold. 5g is going to be a strong driver of dram content growth as well as flash content growth. given the speed and connectivity it provides, an explosion of data and ai driven features as well as immersive experiences. that 5g will be able to give to you. they drive greater demand for data, which bodes well for micron's business. in fact, we have exciting products that we have, over the years, in 2019, that we have announced that student very well for the smartphone applications. but let me tell you it is not just about smartphones. when you look at clouds and servers, they are requiring ai driven applications that are requiring more and more memory storage and cloud storage as well. taylor: that was micron ceo sanjay mehrotra. as for qualcomm, it unveiled the first chips and software for fully autonomous vehicles at c

david: i need to ask you about hardware, dram.hat place into korea, where a quarter of the index has skin in the game. 40% of earnings come from one product. how are you approaching that issue? are you looking at dram prices as a guide as to whether the market has bottomed? had korea as an underweight until two weeks ago. we put it back to neutral. it hit .9 price book, a trough valuation, but we have not upgraded the memory dram sector. itselfk the dram price will froth until the second quarter, so we don't expect the korean or taiwan market to lead. we think brazil, china, and indonesia will lead. non-tech value stocks are interesting to buy early on in the rally than tech stocks, including the china internet area. the regulation of the internet sector in china is another overhang, which we need more clarity on before we can get excited about china internet. yvonne: we have to leave it there. thank you so much. program,ming up on the sterling, brexit, and again, votes. may loses the it is increasingly bitter. we will look at the

while i expect the price decline the solidi believe demand of dram would support some songs numbers inond half. david: since we are talking about numbers, a graphic to break these down. you is thee up for revenue breakdown for the last quarter. i want to understand how this revenue changes moving ahead without softer chip prices, for example. help us understand that. >> ok. know samsung has not disclose the breakdown of the second quarter yet, but we weaker revenues suggest that the smart phone sales were down quarter on quarter. in the meantime, the market numbers suggest there is still solid demand for dram, so i believe semiconductors performed flat or above the previous quarters, so in other words, the smart phone dragged down profit and revenue, which compares to the previous quarter. david: in terms of the currency hit, can we expected the won two weigh on international business? it is awell, since green company, the weaker won would support competition with companies like micron. in the second quarter, the impact of the currency is limited to second-quarter results. david: thank

>> one area is high-performance dram. we've seen activities pick up and memories down.mory has been doing well and we expect investments to continue for the rest of this year and if you look at where memory customers have announced results, high-bandwidth memory brought some back to profitability. dram will grow and we are seeing additional investments starting this year and next year. tom: you are stepping down as ceo and moving on in may. what is in store? how challenging do you think the year will be for the business? >> in terms of strategy and the way we operate, investors should not expect changes. our strategy will continue and technology development is the core of the company because we partner with customers to develop technology. that is the core of the company. the succession of me is something we planned. we brought him from the management board so it is all planning and for me it was a personal decision to do something less intense and focus on other activities. i will continue to help the company in the role of advisor and we issued a press release that we

dram space, saying that demand makes often -- may soften.ower according to samsung on stagnant mobile demand. it's words. final results, the consolidated net income down 4% year-over-year to 4 billion u.s. dollars, and again, the outlook is uncertain right now. thank you. let's do a check on markets here. i want to thank our chief north asia correspondent, of course. it seems like it is a risk on session here today and we are floating -- flirting with chinese bull market territory. companies are in focus today, over 300 companies on the shanghai composite report results and we are looking ahead to 800 and shenzhen as well so slightly, modestly higher when it comes to mainland shares today and we are expecting the likes of bank of china, sinopec, to report earnings and h-shares. we have been watching some of these offshore chinese stocks. we ended yesterday about that moving average. plenty more to come. this is bloomberg. ♪ haslinda: we're looking at live pictures of the lion city at 1130 m in singapore. we are in the middle of the trading d

that is partly because earnings have been strong, particularly the dram sector.t necessarily north korea political risk or south korea, it is looking forward to somewhat less important environment next year for dram after an exceptionally strong 12-18 months. again coming back to where we began, there are various scenarios for how the north korea issue involves. one of them was a sustained positive scenario around de-nuclear station in exchange for removal of sanctions, and that could narrow the discount -- discount. rishaad: thank you so much for that. weatheroming up, heavy for china southern as a reports a profit trop. we check in on it and the rival china eastern in the premarket. that is coming up next. this is bloomberg. ♪ ♪ seng up premarket, hang about .7%. msci asia-pacific, the regional benchmark flat. chinese during and china southern, having a look at those premarket. taking a look at what is going on in the airline space. china has three big ones, and they've been adding flights on international routes, but they are slowing that down in favor of dome

then we see dram pricing and the stock climbing.ted to back off in 2017, well ahead of the all-time high. now we see this big divergence. what investors are hoping for is a bottoming in dram pricing to support that. emma: i am taking a look at another one of the big movers today, oil. wti, crude rising. that's up 3.6% at the high today, rising above $59 a barrel and aiming at $64 for the first time this month. the reason is the big boost to demand side of things in the u.s. oil inventory report, we saw that around 12.8 billion the biggest week, decline. this is also the second week we saw u.s. inventories declined by more than had been expected. a record in crude .xports from the u.s. with the u.s.-iran standoff and rising geopolitical tensions, we are looking at an oil market that has some momentum, with futures jumping 10% in the last week or so. lisa: i want to take a look at some of the consequences of the incredible bond rally we have seen globally. bonds now are the most sensitive to a potential decline or increase in benchmar

micron get 70% of revenue from dram. prices in bluen, starting to bottom out, perhaps turning a corner, and that should be boost for shares. shares fluctuating between gains and losses now. they are watching that for guidance eps, despite the current quarter better than expected. >> thank you. it looks like we did get more headlines, including a correction. fourth quarter adjusted eps, $.56, beating the estimate of $.48, but that may be the estimate and why it is moving lower. the consensus estimate was 49 cents. fourth-quarter revenue will be $5 billion, plus or -$200 million, and $4.78 billion from a so amiss on first quarter adjusted eps outlook might be why the stock is moving south. from wellscobson fargo asset management is to with this, and mike regan. brian, we were talking about micron selling off, also weakness in tech, the nasdaq underperforming today. fast-growing software stocks to behemoths like amazon or facebook, they don't look great. i'm curious whether that rotation away from growth to value people wer

dram, famous for inventing does not really make it anymore.is mostly cpus for computer chips ever since andy grove took over so they do not get hit by that downgrade. downgrading micron's price target to $21 a share so a complete about-face for joseph moore. doing the same thing for sandisk. 24 analysts out of 33 call micron a buy. only three analysts are calling it a cell so a pretty dramatic story. pimm: well done. ahead, thel ukrainian president is no longer a billionaire. taken a hithas along with his country's economy. speaking out,s talking with bloomberg exclusively. ♪ ♪ is the bloomberg market day. i betty liu here with pimm fox. pimm: let's get to some of the top stories. united technologies says it is shedding the helicopter maker sikorsky, turning its attention to high-tech products for the aerospace and building industries. they said several months ago it was launching a strategic review of options for sikorsky with if concluded -- which it concluded was no longer a good fit for its art folio. -- for its portfolio. target is sellin

micron gets a lot of revenue from dram memory chips. renita: i am closing it out looking at the u.s. dollar climbing as global fears intensify. weaker than expected euro zone manufacturing data started to renew concerns. the greenback is mixed versus its g10 peers. , that manufacturing september data rose, signaling the u.s. economy continued to show more resilience in some sectors even though christine lagarde, will take over the ecb as president in november, said the trade dispute is the world's biggest challenge for the world economy. caroline: some breaking news which revolves around juul. california is conducting a criminal probe related to juul labs. remember, ultra has a big exposure to this and has made a big investment. we have seen all tria trading currently flat after hours. >> it goes back to the idea that governments are moving faster than companies in many ways. it is extraordinary how fast the developments of the past few weeks have been in terms of the tide's shifting against these companies. caroline: several health iss

dram at low 20%.k hynix saying the favorable memory market conditions will continue in the second half. chipmakers -- a big deal when it comes to tesla as well. we will get you more on tesla's eta's results from the earnings call. it is a really busy earnings season at the moment. this is bloomberg. ♪ shery: take a look at the crypto space right now. rod downside pressure but this after bitcoin rallied in the new york session. we saw it at one point, surpassing the level for the first time since june. we have seen speculation that amazon could be accepting payments in bitcoin and cryptocurrencies. those reports were later denied. we had some gains for ethereum because we are headed towards that change in august when it comes to their framework. they are saying that that could reduce the amount of out and at the moment, under a little bit of pressure again. we have seen when it comes to tesla really taking a hit this time around because of this, huge fluctuations in the crypto market. haidi: they did r

i think that the weakness in dram will persist longer. take us longer to get back to a memory market that was as profitable as it was. there is a lot of excess capacity in the market that has taken them off-line in 2019. there will be an upper ceiling on memory pricing going forward. haidi: you're saying that we are unlikely to see another super cycle? >> i don't think so. i think the last cycle was driven by the conversion of rotating media to solid-state drives. the increase and the amount of storage in mobile phones and the rest, we don't have quite as much upside in front of us in 2020. what youri'm curious price target is and what you think the biggest risk is when you look out for 2020. >> there is a macroeconomic risk going forward. the recovery of memory pricing could be delayed. the rollout of 5g may take longer than expected. thet is riding on announcement of the new product. there is expectation that apple may be late with 5g. before thee a pause stock continues to rise. it has done well in 2019 despite 2019 being a down year f

downgrading micron to reduce from neutral saying that there is a dram oversupply.ingly, netflix literally the top stock last year, micron the worse, but this year they appear to be finding common ground, both trading down your today. vonnie: there are plenty that are higher, right? abigail: one sector in particular is standing out, gilead scientists boosted by the fundamentals around the company's drug franchise being strong. the new price target of $130 suggests that there could be an upside on the stock that has been beaten down pretty badly from its record peak last year. vonnie: thank you so much, abigail. turning now to china, increased debt will be used to fuel goals in china this year as growth slows. they said that they do expect to fall between 6.5 and 20%. with the headke of china research. have a listen. say, 6.5 to 7%, that's just not plausible. i'm sure that they are going to report that. they always report that they have achieved whatever target they set out. we think that the number is far closer to maybe 4%, that's realistic. they will continue to k

so we are seeing some clear dram isat demands for rising and prices are stabilizing.an expected while the spot prices are increasing in december. the recent issues with the power outage and the plant fire are also positive for the market, so sentiment for then. investors are clearly counting andhe wider adoption of 5g accounting services expenses this year. tracy: our asia tech reporter walking us through the latest for samsung and the wider semiconductor space. thank you. getting more breaking news out of the oil market and abu dhabi specifically for the gulf energy intelligence forum is taking place. oil minister says there is no risk to oil in the strait of hormuz and is not concerned about oil supply and demand, so further lines out from the oil market to digest this morning. coming up, bloomberg size and scope. today's number is 19%. find out exactly what that is in a few ma few minutes. this is bloomberg. ♪ i tracy: it is time now for bloomberg size and scope. every day, we break down one superlative from our coverage and today's number is 19%. here to explain w

mobile dram demand could soften in the second quarter as well. address memory market changes through flexible spending. they are saying that mobile market uncertainty will remain high, this after first quarter earnings just reinstated the strength of their semiconductors and dram business. we will discuss all of that as we have the market open in south korea and australia. this is bloomberg. ♪ >> good evening. australia and south korea have just opened for trade. our top stories, asian markets faced an uncertain day as consumer confidence undermined the new york session. waters.rus muddies the infection rises around the world with the u.s. topping one million american deaths. surpasses the number of total sufferers in the vietnam war. the virus is weakening global demand. a mixed session in the markets. quiet in japan. japan closed for the holiday. stocks creeping online in the australian session one quarter of 1% up. inflation numbers out of australia later today. a bit of an upside after the previous session. mixedtreet directionless throughout

dram will be essentially at the bottom.xt two months, it will probably be officially done. the big debate is that intel, amd sound a little bit better on the data center side. i think the consensus view is one of them is lying is incorrect. i think the answer is demand came back. demand came back and data center has more dram. both of them are seeing in improving environment. if that is the case, you want to be low on nvidi. taylor: what is your take? ian: the first half of the year was arguably, statistically one of the worst declines in overall revenue for the semiconductor industry basically continues. you could look at that as colleagues are doing. things will not get any worse, the second half recovery, that the industry promised will come along. some of the other analysts being more pessimistic are saying we have not really seen demand computing back yet. we have seen some here and there, but probably not enough to justify the massive run-up. taylor: if we see the trade tension resolution was a tailwind, as you look i

in 2016, dram did put in a bottom. precarious analysts think this company might be insulated from over a week as and in 2020 a bit of a pop. a bright spot in the chip space. especially since one of their competitors misguidance. guy: abigail, thank you for a much indeed. coming up, the global battle of the charts. that is next. this is bloomberg. ♪ guy: time for our global battle the charts. as regular viewers will know, you can find these charts on your bloomberg terminal, gtv . you things off, romaine bostick. romaine: let's start here. talking about the banks in the financials where things are rebounding, we are not seeing the rebound in financials. i want to show you a chart that would give some idea why. we are talking about what is going on with trade and the yield curve and how that all in her place with expectations. when you look at this chart, you can see the white line the yield curve inversion. you can talk about the 10 year yield being below that three-month yield for about three months. we are talking

large lcd panels contributed, dram prices picked up in the first quarter, the foundry business did welle global chip shortage. profits picked up 44% year-over-year in the polemic -- the preliminary numbers. operating income was higher than expected. sales in the first quarter were up 17%, to 65,000,000,000,001. going forward, as we look at the second half of 2021, they will be coming out with the next generation of dram. a double data rate. that could help sustain some minimum to -- momentum going into the later half of the year. not a bad set of results given the uncertainty that is clouding since on, which we will get to right now. kathleen: i guess we will need teased what you are going to say next. there is this astronomically large inheritance. uncertainty over the -- what does it mean? stephen: yes. a cloud has hung over samsung because under south korean law, they can pay over five years. this is a huge bill. south korea has the largest inheritance taxes in the world. 11 billion u.s. dollars. the patriarch of the samsung empire, he passed away late last year, he left a 21 plus bi

one thing that could also lift prices of ram and dram is she on -- is xian. that in a minute. essentially, numbers came in line with expectations with the exception of a one-off urine bonus payment that dropped operating profit in the fourth quarter below estimates. they did miss, but still, operating profit was more than double a year ago, so they are doing just fine. there is a chip shortage globally, obviously, and the foundry business has been doing well. chips separated between the foundry business and memory chips, which had some price weakness, and then there is consumer electronics. rishaad: handsets. stephen: handsets. demand has been really surging, so samsung is really riding this quest. rishaad: it is not just that macron has a big facility, too, so it will be perhaps producing more shortages down the line, and we can talk about supply constraints once more. stephen: sure. we will see how production is constrained and output is constrained. that could be another buoyant element to the chip rebound. essentially, samsung has about 43% of its capacit

the chipmaker did see uncertainty in the dram space, but it's on the rise thanks to trade tensions andects of a rate hike. also in the lineup, hyundai motor and lg electronics, the other big names to report. shery: thank you so much for that. cited a risings stock market is proved that his administration's economic policies are working. now as stock prices tumble, president trump is targeting jerome powell and the fed rate rises. trill,bring in libby can who's joining us from hong kong. that's get started with the market selloff. and the president actually decouple himself from all this selling, if the first claimed that he took credit for the surge? libby: thanks so much for having me, i'm issue all from new york but we have a uniform the of the hong kong harbor here. president trump may have regretted hitching his success to the success of the stock volatility.n market but don't underestimate his ability to pivot. i think he will likely pivot away from the stock market and focus on some other economic metrics. they peak, but they certainly have been strong. his emphasis maybe less on

the next couple of quarters, we will start to see benefits, both from nam and dram costs that are comingn. shery: what is the next thing to watch from apple? virtual reality devices will not be available until 2020. what can customers count on -- investors count on to have faith in the company? >> i think investors have faith in the company given what the stock is done. -- stock has done. we started covering apple in 2004, when the market cap was only $8 billion. if you think about the run they have had in 14 years, it has been remarkable. the stock was at $1.50 and doing $7 billion in revenue. the stock is currently over $200 now and they will do $280 billion in revenue. while it has been a good and straight afterly directory for them, they will grow as they continue to expand with their services and the ecosystem that they have. how are currencies and the concerns of a trade were playing into their performance? >> no one will be in the and from the trade war but they have not seen any impact from it at this point. tim talked about it on the call. he went into a fair amount of detail ab

interesting to see this path upward has been compounded with the prices of dram plunging. this is an interesting dynamic because we are also expecting samsung to report later today. they have also warned that they will miss analyst estimates because of prices of memory chips falling. at the same time, analysts are more confident that we could see those prices bottoming out, which will lead to a better second half. amanda: of course, lots of talk about where the economy goes in the u.s., does in version mean coming recession? we got the jobless data today that suggests we are still seeing a pretty strong economy, some pockets of weakness, but a 49-year low on jobless claims. shery: especially when it comes to those march job numbers. we are expecting them on friday. the expectation right now is that payrolls will increase to 175,000, rebounding from ofruary's anemic pace 20,000. on implement study at 3.8%. average hourly earnings also 0.3% per a steady year. mckenzie bezos saying in a tweet that she has finished the process of dissolving her marriage with jeff bezos. and th

the bigger question is are we looking at another dram pricing cycle.itive. joe: thank you. fedex beating estimates on earnings-per-share for the fourth quarter, but the guidance . the forecasted trail wall street expectations. let's get a breakdown of what the company is saying. for more insight into the results, let's bring in tom black. help us make sense of this. all kinds of crosswinds affecting fedex. the stock up a little bit. y?at do investors sa >> they beat on fourth-quarter earnings, but fiscal 2020 was lower than expected. there are some things in there that people can latch onto that are positive and some negatives as well. caroline: we were talking about micron's relationship with huawei. china mulling a fedex blacklisting of huawei. they said they started delivering once again to huawei. what do we know about fedex? productsdon't have that are restricted did, but they are restricted on sending certain products. it is all confusing for them. that is the reason they sued the department of commerce. they said we don't want to be the policema

of this isinks all on dram spot pricing and that the strength k could continue.tock was one of the worst on the air last year, but micron is now up on the year by about 10%. it is turning into quite a turnaround story. we also got into hedge funds. on those?oving >> a flurry of activity on activision blizzard. more capital. janice paulson and company along with prominent investors there. as for what they are interested matthew cantor of bloomberg intelligence has a fundamental analysis on the company. he's has there are several things -- he says there are several things going on, including the subscriber base for world of work craft. warcraft.rld of plus, they have a new game coming out. see upside potential of more than 10%. this could continue with bullish momentum. oliver: good stuff. abigail doolittle at the nasdaq. thank you so much. scarlet: critics who say that argue thatvervalued its revenue model isn't this a noble. our guest says you need to look at reinvestment differently. joining me is the ceo of fortunate advisors. go about would you measuring amazo

samsung and micron have 67% of the global dram market.unts for 42.5 percent of samsung's total flash memory production capacity and a little more than 15% of the overall global output capacity, so we do need to see what, for impact going forward this lockdown, if it extends beyond what we've seen already, what impact that will have. we do have a headline this morning from the chinese newspaper saying that samsung and micron may face factory disruptions. so lots to look out for. paul: steve outline and operating profit missed for the quarter just gone and some potential storm clouds on the horizon as well. what is the market impact of this likely to be? analyst recommendations for samsung still overwhelmingly positive. >> yes, that is right. we only have one sell recommendation. the target shows nearly 30% return for the next 12 months. it was a slight ms. but that was no real surprise because we expected a condolence payment would be given. there are three positive views that may -- the ceo told reporters the company is moving faster than

more than 70% of revenue from dram and extending its first loss in 16 months.s emissions scandal has risen to 24 billion dollars. fourth-quarter charges came to 4.6 billion dollars after reaching agreement result consumer claims in the u.s. operating profit rose 14% last year due to improving sales marches and still and tends to pay a shareholder dividend. here is a blast from the past. a new range of phones, including a redesign of the classic nokia 3310. the move is a push to revive nokia's glory days. the 3310 as part of a push into the low-cost phone market. releasing two other nokia branded handsets and the second quarter and will run on google's android operating system. some of the world's biggest telecoms companies joining forces to push for a faster move to 5g. more than 20 companies signed up for the standard for the next generation of mobile networks. they are hoping it will celebrate -- accelerate the rollout. a new gopro mobile editing app is about to become of huawei smartphones. it is part of plans to boost its sales and china. >> gopro is bettin

meanwhile, coming up, i will be joined by the vp of micron's dram crisis -- price integration.ve a list of the patents being built on average coming out of micron. we will talk about her 30 years in the business to help inspire this next generation of female innovators in particular. later, my conversation with her on the boom of job creation in the city. this is bloomberg. ♪ >> this is bloomberg technology. i am caroline hyde. in boise, idaho. let's get back to the markets. we will have a check on the day chipped news in particular. >> if you look across the philadelphia semiconductor index, there is only one name on tuesday that was in the green and that was advanced micro devices. the fed is slowly better than the broader market. still down nonetheless. bernstein turning bullish on the stock to the first time in a decade, bringing outperformed rating from a market born rating. they basically said we got it wrong. we were late to the game and there was another milestone close. and he closed with a market value of 188.3 billion dollars. why is that significant? it gives it a m

there is a reason to think that dram is bottoming.t up a decent quarter at the end of june. it was less bad. there were concerns that it really was plummeting. intel, their results also supported that idea. the stock is up about 38% on the year. the s&p 500, less than 20%. you may think that investors get a little bit ahead of themselves on those fears. caroline: we will see who wins out tomorrow in terms of the apple effect. romaine: obviously huge waiting across so many. abigail: it should provide a bit of a bullish tailwind. of course, the biggest could be the fed. we were just talking to matt from headwaters volatility, and he said options aren't really pricing in a move. we have another chart, a pretty interesting chart, actually our most popular chart on the terminal. in blue, the s&p 500. in yellow, the vix. in white comedy skew index. that index is considered to be the panic index. but only goes one month out it tells you some investors are starting to have a little bit of apprehension about what could be next. abigail, always