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

>> 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

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

the leading chipmaker says the latest dram has the same capacity as the 30-nanometer class dram introduced in july last year... but the latest technology offers a 50 percent improvement in productivity and reduces energy consumption by 40 percent. this has placed samsung's technology around six to 18 months ahead of its taiwanese and japanese rivals... which still produces 30 or 40-nanometer class chips. the industry's second- largest chipmaker, hynix semiconductor also based in korea is trying to catch up... as it plans to develop and start producing 20- nanometer class chips by the end of this year. meanwhile, the world's number three dram maker, japan's elpida memory announced earlier this year that it will start producing 25 -nanometer drams... but that still hasn't happened yet. meanwhile, samsung also began operations of the world's biggest memory fabrication facility, the line-16... which is producing nand flash memory devices... and boasts a size equivalent to 28 soccer fields. experts predict samsung's recent success of producing the 20-nano class drams will redeem the company's s

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

it is the big of the marriage of drams in the world.as been there for years and years and years. no new capacity has been added in some time and that's aloud random access memories which have been falling in value to stabilize in price, and maybe even increase a bit. this week micron took a real header, why? because it's competitor is rumored to be building a new dram factory. just the rumors set the stock down gigantically because it could put the dram market back in equilibrium ors are worse, oversupply and it was all it took. similar similarly, seagate, and -- as neither they nor anyone else saw much of a need for new one given the decline in pc sales and the flash memory, a competitive form of chip, but get this, just the idea that a dram factory might be built sent these stocks lower for fear that it might lead to new disk drive capacity, that is guilt by supplies is yagz. yet, you don't need to be an econ major to understand stocks and if you don't understand supply and demand then you'll be mystified about how stocks move and a m

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

computer chip maker, so there is a memory chip caught dram, the chinese import all their dram they do not have a mass producer a few years ago they set a goal, that they were going to have mass production capability invested multi million dollars setting up a company, to manufacture durham they, build the factory, and set up the company, but they did not have the intellectual property to produce the chip so the way they got it twice, they were gonna steal it, and they started by approaching employees with a subsidiary, and to come over, and has information to them, and the company, they are going to do this. micro noticed what happened, and they went to immediately to the fbi and the government, they cooperated extensively, and they been very vocal about that operation, and the result of that was not only the individuals who are charged here in the u.s., in the tie in taiwan, the company itself, also the chinese company was charged. most significantly i think from the point of view of the american company is that the chinese company, was denied entry, by the calmest apartment, and the

you have dram, dynamic memory. think of it as used for any type of apps or algorithms.wer is shut off, it's no longer in use. it's considered faster and cheaper versus nan memory, which is nonvolatile and it's saved, all of your passwords on a usb key. that's considered nan. what these analysts are saying is there's a lot of strength right now in the dram market. why we're seeing the subsequent, and it should benefit names like micron. i want to point out mizuho put out a small note, a few lines, saying they like western digital because that company focuses on the nan part, the nonvolatile. they say there's still a lot of upside in the near term for this name. so, there's -- it's a little confusing with all the acronyms but it seems like right now memory prices could see an upswing, even though we're seeing weakness in other sectors like semicap equipment, even names like nvidia have been falling down, all those a.i. plays. >> yeah. and that initiation of arm at underperform at bernstein, i think the chip business is confusing all the time. thanks. kristina partsinevelo

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

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

while brix is ​​exploring the possibility of creating an alternative single currency as soon as the dramsct settlements in national currencies. as soon as they transition and digitize. e your turnovers. well, and accordingly, these spreads reduce commissions. it becomes quite a convenient tool for external economic activity and in this respect gradually. uh, well, western sanctions policies are starting to crowd out and us debt problems are pushing other countries to reconsider their currency priorities. we'll take care of this. it will be the honest detective. now the news of the economy is briefly finnish, fortum has written off assets in russia in the amount of a billion 700 million euros, the total loss from projects in our country is estimated at 2 billion. this was stated by the head of the concern markus roma according to him, fortune has completely lost control over its operations in russia, earlier vladimir putin, by his decree, transferred the company's assets to the management of the growing property of the moscow exchange launched trading in futures for the kazakhstani tenge a

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

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

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.

blogs.barrons.com/techtra derdaily/2013/09/04/micron- surges-sandisk-rises-piper-sees- hynix-fire-benefitting-dram- pricing/ 3) k cup for your soul - how to play soup? http://blogs.barrons.com/techtra derdaily/2013/09/04/micron- surges-sandisk-rises-piper-sees- hynix-fire-benefitting-dram- pricing/ msu fun facts which statements are true the school was founded in 1855 originally named agricultural college of the state of michigan the mascot is sparty two of its alumni will wind up on traders unplugged on a show called first business.. in other news... the time has come for traders unplugged joining us now from the floor seaming group alan document and change dramatically. hey guys. topic number $1 holler. which dollar retailer is the best for your money? > > there are some people not you james, they say the dollar stores were over. wal-mart was a smash them out of business. dollar general set a new high so i don't like that stocks here at this levels. f-d-o moved from 20 to 70 in the last couple years. so, too little too rich for me the stock i like here is a dollar tree. dollar tree has always go

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 expecting 31%. i asked mitch why the bite rating he said supply will be constrained leading to surprise increases. on the call they are going through the markets, what demand looks like cloud ai will drive long-term growth micron is positioned there he did say there was market weakness in the quarter no surprise there micron he's arguing is well positioned to capitalize the work from home trend is intact, strong demand. he said dram we have passed the bottom micron will continue to benefit from 5g. back to you. >> guy, micron is in every single market out there. >> you asked how do you trade micron here. we said you close above the 59 high or so before you crash like everything else. now we are at $80 or sho although we don't talk about these names in valuation, i will naen mention that given the earnings growth, there is a chance it continues to go higher from here i understand it has had a huge run. josh just alluded to this, but i think you still stay at micron at these levels. >> it's like prici

neither company had ever made advanced dram, so how could they possibly manufacture it together less than a year after the company had been founded? according to the indictment, by onrraine micro -- luring micr employees to steal trade secrets and bring them to the company who would transfer them to the chinese state owned company. we have responded with the full force of our law. we have charged three former micron employees and two companies with economic espionage, stealing trade secrets for the benefit of a foreign government. we also brought a civil suit, the first of its kind, seeking an injunction to prevent exporting dram to the united states, where it would compete and wey with micron worked directly to add that company to its list, making it functionally impossible for the company to buy the materials it needs to make dram based on the technology it is accused of stealing. in these ways, we have deprived the thief of the benefits of its best, mitigated the damage to micron and discouraged future thefts. the macron case is one example of -- micron case is one example. china

dram pricing continues to be strong this stock is breaking out to the upside we talked about it for the last two or three weeks another name, zylinx made a 52-week high today as consolidation continues to half, i think in this space, we've talked about this before, xilinx might be a takeover candidate. >> this stock is just on fire. >> $100 billion in one day, it moves that much, it's crazy. >> the streets behind this, the investment committee is behind this no question this stock will continue to move you look at marvell, on a path to 65% gross margins, no reason to take your foot off the gas. you bring up netflix i think netflix out of all the f.a.n.g. stocks is set up, 200 bucks by year's end. >> i get why we're trading on the multiples we are the upgrade on nvidia, i understand that, i see that's where the growth is. i would rather own the gamers themselves, activision, even take two when i look f.a.n.g. versus chips, i actually think google has been dead in the water google is in valuation play. if you ask me, if i forced myself to play would you rather, i would own google all day

. >> translator: the price of dram chips has plunged to one third of what it was a year ago. the yen's unprecedented strength and last year's floods in thailand also affected the company. the environment surrounding us has deteriorated rapidly. >> japan's only dram chipmaker and the world's third largest, elpida received public funds after the financial health worsened following the lehman shock four years ago. the company has been seeking a possible tie-up with u.s. and taiwanese chipmakers buthe falling yen has added to its financial woes. the japanese government has also been reluctant to extend its support beyond march without fundamental restructuring of the firm's operations. following the bankruptcy filing, stock exchanges in japan and taiwan have decided to delist elpida's shares. let's look at other asian markets that are open th hour. >>> all right. that is the latest in business. back to catherine now. >>> let's go bangkok to find out what's making headlines in the region. >> afghanistan days of chaos and outrage following the burning of the koran by u.s. soldiers

dram chips are essential for digital equipment. japan's government is gearing up for negotiations with the united states on joining the transpacific partnership free trade agreement. negotiations with january and japan secured support from four of the nine countries involved including vietnam and brunei. japan will send senior officials from other agencies to washington for the u.s. negotiations which start next tuesday. >> they'll start preparing for preliminary talks on the conditions for japan's participation in the tpp free trade negotiations. the u.s. government is likely to push for a further opening on japan's agricultural and automobile industries with precise requests. japan will decide whether to join the negotiations after assessing how the tpp will affect domestic markets. discussions with the u.s. will likely be a major focus on the final decision. let's take a look at market figures once again. >> we'll get you more updates on the tse as they come in. for now it's back to catherine. >> thank you very much, ai. >> a st

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

dram is slightly higher, so i would be a seller of micron. >> pete? >> what i liked most about this call was listening to the ceo, how confident he was, and he was projecting out further that dram would be up another 20%. he's talking about the revenue being as strong as it is these guys just mentioned it's 70% of the revenue, dram i think it's good. two weeks ago the stock was trading at 76, it ran up to 85 so unless it was an absolute complete blowout quarter, which it was pretty close, you just wonder what they had to say to continue the move it just made why wouldn't it just be a bit of a pause for now and then it starts making those legs up towards 110 like the bmo analyst was projecting and what guy was talking about as well. it doesn't seem that far-fetched, especially when you look at where this trade is now and the growth and obviously the demand is there. >> just broadly we were talking about the semiconductor etf and talking about how cyclical it was. t tim, you actually made this point. in the world where tom lee lives, it will go up anoth

competitive industry, but at the same time that they are willing to shift the markets so that the dram prices and nan flash prices could go on. let's try to look at the bigger picture here. i mean, not long ago, semiconductors were in high demand, accompanies actually have to scale back production because the central ships were missing. what does the picture look like today? base, you're thinking about different kinds of chance. we still have shortages in different parts of the industry. so say for instance, auto champs or r a i chips and there are in different kinds of kinds empty man thresholds. so memory chips in this regard is a little bit of a problematic picture here because there is too much supply and there are stocks. there are accumulating in there in the warehouses. so it's about time that something electronics shifts gears and that's the right decision. june park, political economist, judgement futures. thank you for your thoughts now to some of the other global business stories making years, the russian rouble has hit the lowest level against the euro in the us dollars sin

>> 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

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

drams, disk drives, why are these doing so well, rick? >> well, so i can't speak to drams too much.re in the nand flash area and more of the products we try to design into the industrial base. so as far as the really volatile volume dram market, can't give you much perspective there. but we do play in certain segments of the microprocessor and hard disk drive space. it's not been dropping off a cliff for us. >> now, typically in this period, i'm used to hearing avnet. you talk about the seasonality on the conference call, but usually europe shuts down, i'm always nervous, but you declared a dividend yesterday. you guys canceled your dividend a while ago because i think you didn't have that kind of visibility. this is not the thing that i would expect from avnet which is always worried about its visibility these days. what happened? what gave? >> so, jim, we've talked consistently over many quarters about our capital allocation strategies and we've talked about we always like to prefer to invest in growth wherever we can. we've done some buyback recently as we've talked about on prev

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

cars like this dar dram now cost around six thousand euros more due to a ten percent tariff on vehicles imported from the u.s. . like others tongues shipping has been caught up in the trade war set in motion by u.s. president donald trump and countered by chinese premier paying. more than just the movement of goods is at stake it's about influence power and world leadership in the future. john you know june founded a p.r. agency in beijing her husband jeremiah is an american the two have been married for eleven years. little has changed for them since the trade war began the only thing they've noticed is that apples in the supermarket that used to come from the us now come from canada. you know it doesn't have it but both are worried about the heated conflict right between the two countries of course because people talk about another cold world is that the case yeah it's. does concern me in to a certain extent because you know as the top leader of the united states seeing something so strong i think that must mean something it seems to be kind of a strategic competitor or you know possi

until recently the chinese could not make dram. they had to buy it from companies like micron. in 2016 the chinese authorities set out to change that. first, at the highest levels, the chinese government publicly identified the development of integrated circuit technology which includes dram as a national economic priority. then it invested more than $5 billion to start up a company for the sole purpose of designing, developing and manufacturing integrated circuit chips, specifically dram. that same year, having never made a single computer chip, this company announced a partnership to manufacture dram with a taiwan semiconductor foundry known as umc. there was only one problem according to our indictment that we unsealed last night -- last month. neither company had ever made advanced dram so how could they possibly manufacture it together less than a year after they had been founded? according to the indictment, by luring micron employees to steal trade secrets from micron and bringing them to umc who would then transfer the technology to the chinese state-owned enterprise pu

at the temple , a hundred drams of holy water dripped with this sweetest steep and flaunts daughters,already prayed and coldly fell down prayer with the belarusian earth angry. alsu was founded to the song and everything is not a soul allows. about love what have you done? is there the most promising position for defeating the enemy of those who are silent and watching while being, perhaps the target, this is the easiest way to get what you want, or is there another psychological company, if you call yourself independent, then show your independence. show faith in what you do. ksenia lebedeva's project is different, watch it on belarus 24 tv channel. they like to live in woodland 13 years ago. we came here as a family, we wanted to buy ourselves summer cottage, but they decided to buy a small village here, they found themselves and their business and got on the laying, not only ran away and kissed the children. we do almost everything together. well, not true, he mows the grass. igor, i don’t take a scythe with us. it has never worked out yet. my goal is to pass on the history of my n

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

and more than a week dram of concern makers of scotch whisky break peter day global business. i've been fizzling let's do business this is the disputed so us president donald trump first announced high a tariff on chinese steel and before adding many other products creating an all out trade war china is america's biggest trading partner and the experts exports over five hundred billion dollars worth of goods to the u.s. so far washington has threatened to slap tariffs on chinese goods worth around two hundred fifty billion dollars china retaliating or be it to a smaller scale because the u.s. exports fuel goods to the country it said it could impose extra duties on goods worth one hundred ten billion dollars the two countries declared a ninety day ceasefire last month the pressure is on through resolve the dispute before that true six spies and of much if you think that that is achievable. the u.s. and chinese representatives will need one key quality staying power these trade negotiations are set to be blown and difficult nonetheless there's real hope that the trade conflict

already been discounted micron has warned that they were going to cut production by 20% for their dramnd they also warned that 2023 as a whole would be a weak year for the memory markets so you take those factors in, take the fact that the overall memory market has been oversupplied for about 18 months that's put pressure on prices to come down. inventory levels have climbed. and you know, we often talk within the chip segment that there's been weakness in smartphones and pcs. that's starting to trickle over to enterprise. what does that mean for a company like micron, especially when they are dealing with so much inventory more specifically, we can probably pull up a number for you. gulf goldman sachs had an average of 169 days average, number of inventory versus the q3 average of 106 there's definitely some room to fall there, weven though the company has warned several times already, brian this is something we'll be looking at, as well as any cuts to capex if there's cuts to capex, that will affect equipment makers and china. we put so much evermphasis on te reopening of china >> ye

when you hear from the company the dram is okay. if you look at a chart the company doesn't look okay to me. further weakness. they're naming a bunch of other things they're concerned about. if i told you that a couple months ago kb homes would be up 20% and micron would be down 20% in the time frame you would have thought i was crazy. but that's what you're starting to see. a switch in where guys are long. >> one positive sign i thought was actually in microsoft today because obviously we all talk about this pc demand weakness. microsoft is the epicenter of that potentially. they also have their data center that they're working on now. but the point is it held 45 and that's a very big level. i was actually positively surprised by microsoft's -- it's called relative outperformance in today's market. given the fact that intel got crushed, micron. if you go with guy and say i want to buy this micron rebound, i think you've got more juice in microsoft. >> it wasn't just micron guy. it spilled over to hewlett-packard, adobe -- >> qualco

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

then where does the growth come from they've got dram and nand, and everybody knows what that's aboutat's a big game they have to wade through the very difficult times as well as some of the great times, but i think what's important here is this ceo made that first acquisition, and that puts them in the position into a.i that's what i think is so important. micron is no longer going to be this company that looks to just memory and just storage. they're getting into a.i. in a big way with the acquisition these made late last year. a.i., 5g, a lot of names we talk about all the time, i think this name actually has plenty of room to of up side not long from ow >> that's very interesting why do you think people don't pay enough attention to this major core part? all we hear about is nan and dram >> not only was it services, now it's wearables, so i think that's the story people aren't seeing the future. the future is where the growth will come from that's a.i. and 5g >> m.u. as the fast pitcher there. it's judgment time i mean, this is getting serious. tim seymour, you kick off the voting

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

drinking and i dram would be a small serving of liquor. so, you have the signs but there was every reason to believe there were many other things that never got captured in writing. often times this type of dependency was defended on one of three grounds one we discussed medical need and the person was not taking it as a luxury and they are taking it because they are dealing with pain or insomnia. another scientific experimentation. the western travelers would try the drugs themselves because they figured it was the best way to report on what the effects were. some of them would say the drug was not dangerous and would dismiss the motion that this is a concern and you do have some's saying that just as they would say this is the alternative to alcohol they would play down any concerns >> so, we have these glimpses that it was not public we discussed until we get to de quincey their reaction to de quincey's work in america, many people thought it was interesting and there was one reviewer who said he was really not worried he believed that

the highlights as the consumer electronics show in las vegas gets ready to open and more than a wee dram of concern makers of scottish whisky fear that britain's exit from the european union will torpedo what has grown into a global business. i'm christopher good to have you with us china says it's willing to work together with the united states to resolve the year long dispute between the two countries the foreign ministry expressed optimism estrades talks resume to beijing for the first time since u.s. president dong trump and his chinese counterpart ping agreed to a ninety day truce in their trade war last month. the u.s. and chinese representatives will need one key quality staying power these trade negotiations are set to be long and difficult nonetheless there's real hope that the trade conflict may finally be brought to an end china has already opted to ease tensions by lifting its ban on imports of u.s. soybeans and suspending extra tariffs on american cars business leaders are expressing cautious optimism we're seeing an acceleration of many of the policies that china is committ