let's begin with the global chip war because semiconductor equipment maker asml has confirmed reports it had received licenses from the dutch government to export some of its advanced tools to customers in china until the end of the year. export controls are due to begin today, after the netherlands has followed pressure from the united states to curb with the sales of advanced computer chip technology. this means the current licenses in place are good until the end of 2023. it's widely expected that in 2024, these licenses will not be renewed and so what that means is asml which has a 90% market share in this space, is not going to be able to sell these machine next year in china. talk us through the purpose of these curbs. there were earlier ones by the united states and also japan — are they all aimed at china? they are. they were initially aimed at the very high—end application of semiconductors used for military or supercomputer use but we have seen it getting broader and broader which now is making it increasingly difficult for chinese companies to produce telecom equipment, sma

that will pass through with names like asml. alix: we have a pretty decent selloff. we have the umich data, with mixed signals. you are seeing adobe is the worst performing stock. analysts feel their guidance was conservative. arm is taking a break after that 40% pop. but nothing super dramatic. this is all but the overhang of the uaw strike. guy: we are also watching the dollar continued to climb. the euro is the biggest casualty. it is in for its ninth week of decline. at the moment, we seem to be in a position where the market is beginning to focus less on the rate differential, the market is focusing on the growth differential. if you look at the growth numbers being announced out of the united states and europe, that does not bode well on where the euro goes next. parity does not sound that far-fetched anymore. alix: this is the interview after the meeting with the ecb yesterday. >> we are on the right track and i think we should stick with the lower interest rate it is the right number to reduce inflation. guy: the market is starting to think about where cuts c

designs of certain sizes and the provision of semiconductor many for equipment from companies like asml others. this allows the intellectual property to get back into china. and if you look at his you is eating -- at who is using this is the chinese companies. i think put the proper export control. where there is a gap, close the gap. our export control management, our listing of companies that have made violations is extremely pedestrian and not agile. we have to become more agile and we can't be playing whack-a-mole with a thousand holes on the grid. we have to more aggressively determine what technologies we will limit and pass broader export controls. risk five is a place i will go first. caroline: it's great to get some expertise from you today. from new york, from san francisco and washington dc, this is bloomberg technology. ♪ or filing returns. avalarahhh ahhh nice footwork. man, you're lucky, watching live sports never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch.

let's begin with the global chip war because semiconductor equipment maker asml has confirmed reportsina until the end of the year. export controls are due to begin today, after the netherlands has followed pressure from the united states to curb with the sales of advanced computer chip technology. this means the current licenses in place are good until the end of 2023. it's widely expected that in 2024, these licenses will not be renewed and so what that means is asml which has a 90% market share in this space is not going to be able to sell these machine next year in china.

let's begin with the global chip war because semiconductor equipment maker asml has confirmed reportshina until the end of the year. export controls are due to begin today, after the netherlands has followed pressure from the united states to curb with the sales of advanced computer chip technology. this means the current licenses in place are good until the end of 2023. it's widely expected that in 2024, these licenses will not be renewed and so what that means is asml which has a 90% market share in this space, is not going to be able to sell these machine next year in china.

asml with a hit of 2.7% in the trade today to the down side.oumanna, positive side to the trade in europe today. it seems a few fact orfactors a play. you see china as the reason why and the luxury space which is a big driver, but the ecb event yesterday as well, that was a relief moment for markets. >> it depends how you interpret it. if i wear my fixed income hat, there was a rally in yields. that tells you the market is concerned. we're talking about ten-year time horizon here with the ecb of the monetary tightening and impact on growth and financial conditions. ultimately, the reaction from the bond market was negative. the stock market reaction was positive perhaps the stock market cheered on that perhaps we're at the end of the hiking cycle. notes sent out suggesting their inter terpretation was the ecb done with the hiking cycle barring inflation which will not happen because of base effects. the expectation numbers will continue decline over the next couple months. the take away from the market, i think, was interesting. it feels we are

asml down 3%. applied materials down almost 3%.after earnings with a tough week. lam research is down as well as kla. this is on an issue with taiwan semi with shares down .30%. we will talk more on that later in the show. >>> we want to talk about oil which is sitting at 11-month highs. wti is the u.s. benchmark above $80 a barrel. off the highs right now. brent crude at $93.91. natural gas is moving higher up over .50%. >>> turning back to the top story this morning. uaw officially on strike against all three of the big three automakers for the first time ever. the two sides failing to strike a deal on the labor contract before the midnight deadline. this morning, thousands of workers hitting the picket line. phil lebeau is at the ford assembly plant in wayne, michigan. phil? >> reporter: frank, 3,300 members here on the picket lines. they build the bronco and the ranger. let's talk to members here pick picketing. it this is scott fox. scott, how long have you been here? >> we started at midnight. we walked out at midnight. i'm h

in the netherlands, asml makes the most important tip making -- chipmaking equipment.nd the japanese who supply other kinds of components that are needed for these advanced chips. kriti: suddenly everyone in washington is becoming an expert on the nitty-gritty that goes into a to. peter elstrom joining us this morning on our big take. i want to stick with the tech space. french antitrust enforcers have rated the offices of a business suspected of engaging in quote anti-competitive practices in the graphics card sector, targeting nvidia. the company's dominant role is coming under closer scrutiny. france's competition authority says they do not presuppose the existence of a breach in the law. why 155 maybe the magic number for japan when it comes to currency intervention. we get the outlook from the man they call mr. yen. this is bloomberg. ♪ kriti: former japanese finance minister known as mr. yen says the government may be close to intervening to support the yen. he spoke to us exclusively. >> it depends upon the situation at the moment. but something like 155 is the

there are companies in the supply chain for which asml has a lot., china does not have access to. they have gone upscale with this device but they are two generations behind. lisa: what he make of what john was saying, gina raimondo was touring china and there was a clear statement it is not affecting us that you're trying to sanction us from this technology. how far does it go as an expert vehicle versus a comeuppance to the u.s.? alex: huawei and apple, the real strategic value of huawei's head of the network equipment. they are the biggest player in that space competing with nokia and ericsson. they are building their five chain network in asia, they been blocked and the rest of the world. if they can't get the leading edge chips for those application that's a blow to their global ambition is something that affects her ability to have access to cloud computing the best 5g antenna at the edge of their network. that is the real value rather than in devices. lisa: given the fact that china is clearly stealing technology we had a council that support

names like asml, taiwan semi, these are on 52-week low list, not the 52-week high list.al detier owe ration we've seen in semis. there's 50 stocks in this index. the advance decline line'slows. i recognize the index is up, but the fact that you have the ad line speaks to just how weak this group is under the surface. they are short-term oversold. i can see them bouncing in the near term. fade those rallies. i think they've topped for the year. >> would you short nvidia again, dan? >> yeah, let's see if it gets a bounce. the story is going to be the deceleration of that growth, so, if there's any hiccups in the adoption of the products, anything geopolitical, whatever, it's great, it's been a fantastic story. i was very, very wrong. a moth to flame in this sort of thing. but the story dsh-- it's about good as it gets. >> the move that nvidia made in may, what it did for the stocks, is the question. it hasn't gone past there. that was the relative high, in fact, it took out the high of deck '21, and it's been, you know, making lower highs ever since. so, i agree with the a

taiwan semi, adobe, asml, i just talked to some folks on the show about the blow-up today in some of these chip names and adobe after its earnings. what concerns do you have? >> scott, we still feel really good about these names over the next 18 to 24 months. we talked about seeing a little bull market consolidation in tech, and that's what we're seeing, but if we look at the fundamentals, i think pcs have bottomed. i think smartphones have bottomed. i think e-commerce has bottomed. i think datacenter spending has bottomed, and the valuations are relatively reasonable across the space, the global technology index is trading at roughly 22 to 23 times earnings. historically, that peaks at 27 to 28 times earnings. so, yeah, we're in a little bull market consolidation here but over the medium to long-term, we still really like these names. >> but 18 to 24 months is a fairly long time frame from here. what further pullback or consolidation, to use your word, do you think we could still be in for? >> well, you know, i actually think that we're probably coming closer to a bottom here for mo

asml is maybe the quietest and most important company in the world right now. you also have alphabet, amazon. you've got ibm. >> yeah. ibm is a kind of value play in tech. it's a misunderstood story. people fell asleep. it's mostly software and services now. it's got open cloud computing is a big piece that will be an ai beneficiary. stock is starting to move, but trading way below the levels of other big tech stocks. the value names like that are interesting. >> would you say you still have major concerns about the setup in markets? some people are worriedyied abo bond levels and how that could play into next year. i'm just curious what you see as the biggest potential pain point? >> well, it's been a slow-moving adjustment. we say that time is on the side of the ball. you take the regional al banks. every homonth that goes by, the put away a couple percent of reserves against the commercial real estate crisis that everybody knows is coming. so these slow-moving things give managers and investors time to adjust. so i think that's been sort of the theme here th

the leader of the most important company in this area, the dutch company asml has been opposed to thesey can get the allies on board with tighter controls on china. shery: executive editor for asia technology peter elstrom. hsbc's ahead of public affairs is said to step down shortly after controversial comments about the british government handling with its relationship with china. he will leave the lender next month, he apologized for calling the u.k. week for allowing the u.s. to guide its business dealings with beijing. more to come on daybreak asia, this is bloomberg. ♪ fabulous surroundings... but everyone's looking at their phones for financial insights from merrill. is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of

>> from our vantage point, applied materials, asml. lot of upside, you know, in the long run, stocks have had a pretty good run, discounting next year, but i think there's long-term potential. other names kind of interesting i would say you know, as a part of the a.i. team, you saw the memory names rally like micron, but then some laggards like seagate. i think that to me is interesting and the stock is really rallying in the last few weeks or so. i think there's more upside there. >> a lot of headlines about the chinese and huawei and whether or not they have managed to get a 7 nan mow meter of breakthrough of sorts to do an end run around our export controls. how real do you think that is and how concerning would it be? >> yeah. it's surprising to be honest. i don't have a whole lot more details. but it's interesting they're able to do it. as you know those restrictions that went into smic last year, restricted any subs too. some of these can be used and able to process. it seems a bit of a stretch. it's very interesting that, you kn