it is very interesting to see qualcomm before apple for that reason.e larger market. haidi: common sense would have said that market would have bounced back. it has not. did he say anything about how that recovery might play out? mark: the situation in china is steadily improving. they said they did not see anything of vast significance. if you look at other earnings calls from other companies, they are saying similar things. you look back to what these companies were seeing three months ago, including apple, qualcomm and others. they seemed much more optimistic. there has been a sea change in the china situation in the past couple months. haidi: that is it for daybreak: australia. coming up after this is daybreak: asia. this is bloomberg. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com a streaming service... what's goi

. >>> coming up, afterhours action in qualcomm. shares lower after reporting results. >>> plus, oil now below 70 bucks a barrel will prices continue to drop how to trade the moves when "fast money" returns asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - are you a certified financial planner™? - i'm a cfp® professional. - cfp® professionals are committed to acting in your best interest. that's why it's gotta be a cfp®. back when i had a working circulatory system, you had to give your right arm to find great talent. but with upwork, there's highly skilled talent from all over the globe. right at your fingertips. ♪ this is how we work now ♪ >>> breaking news on j&j's ken view ipo pippa stephens has the details >> the ipo is priced at $22 per share, according to a source that's the high end of the range which was $20 to $23 products. the size of their offering will raise $3.8 billion in the sale, and this would be, melissa, the larges

qualcomm will feel the brunt of the pain from june through september quarter and making qualcomm's push new comments from yesterday said that they are getting lower orders from a modem only customer, which is presumably apple. is apple really by its chips in advance, which means lower demand or is qualcomm's negative iphone 15 and indicator , especially in the coming months as they have launched in september. it is hard to do. >> thanks. >>> let's take on the market as we go to break. we are at session lows. done at 400 and all sectors are red and popped once again. this time, 21. >>> trend trackers sponsored by group. c and e group, where risk meets opportunity. our customers don't do what they do for likes or followers. their path isn't for the casually curious. and that's what makes it matter the most when they find it. the exact thing that can change the world. some say it's what they were born to do... it's what they live to do... trinet serves small and medium sized businesses... so they can do more of what matters. benefits. payroll. compliance. trinet. people matter. >>> welcome

. >> chips, what qualcomm delivered didn't make you nervous? they suggest the handset slowdown is maybe not over that doesn't move you at all >> no doubt some -- we've seen similar caution coming out of asia, but i think what's happening here is apple gaining share in china, that's why despite the caution and nervousness, i think it's a flex the muscles moment for cook. >> the other thing, before we broaden this conversation, china is more of a question mark today than it was. most were assuming china is re-opened, everything is great everything's roses then estee lauder says we're not seeing the retail travel we thought. that's different than inside china. you've seen some other evidence that maybe it's not like the doors just swung open and everybody rushed in. >> i'm not expected champagne and roses. >> but you paint a very optimistic picture and china is a key part of your thesis. >> china has 150 million iphones that are in the window of an upgrade opportunity. that install base -- they've added 100 million new iphone users. >> we'll see y

ed: the downside movers on earnings, qualcomm is down 4.91% . we are going to go deep on these earnings later in the show. etsy gave a good forecast but investors are not buying it. it's the regional banks story playing out. you look at pac west, western alliance, two catalysts driving those stocks. pack west denied a report, western alliance people are talking to investors trying to work out what is going on. is the idea of communication. what is the health of these banks? first republic was not speaking out that because the jitters. but we have commentaries from these bank but it's not helping these stocks. caroline: i note this is a continued global conversation. the ecb rate raised today and the u.k. deposits pulled by u.k. depositors from u.k. banks at a rapid rate. they are worried about svb and credit suisse. many are wondering how people pull out money. savers how different options. they can go to different banks, fintechs. ed: we discussed how the digital world allows you to pull money that much more quickly. it is a mobile driven bank

much better than qualcomm. qual coqualcomm is doing poorly here's my word on qualcomm three words, sell, sell, sell. i can't guarantee you a win with what i went through with the stock with home depot. i do believe getting a stock at a lower level. it may be worth a shot speaking of stocks at lower levels, fitness is behind your fitness boutique brands. maybe pull back. let's work it out together i'm checking with the ceo. how could the strength of the dollar affect the assets of qualities? i'm going off the charts to find out and you'll be surprised about the interest yesterday, by the way, i told you the travel and leisure showing strength so could boeing fit in that thesis of trying to figure out if we have economic activity here let's get a read on the space with the ceo of brunswick. so stay with cramer. >>> don't miss a second of "mad money. follow us on twitter have a question? tweet cramer #madtweets second jim an e-mail or give us a call. if your business kept on employees through the pandemic, getrefu

another big week for tech earnings today, amd, qualcomm, apple all reporting. we have a preview of what is to come. they file confidentially for an ipo in the u.s. of the reagan. more -- over the reagan. >> in technology, mastec 100 up to tens of percent, relative the s&p 500 we are treading water -- mastec 100 up to tens of a percent, we are treading water on the s&p 500. stocks up mishap a percentage point in yields are climbing come the u.s. 10 year up by 12 basis points. there is some corporate issuance out there, met i going to the bond market, since the -- meta going to the bond market. we will bring you the details later in the show. there is one story we are talking about. jp morgan stepping. into acquire. first republic taking on portions of the loan book and deposit base and a deal negotiated with regulators. jp morgan higher by 2.7%. let's get more details from first republican, bringing in embarq's -- bloomberg's sonali basak. bring us the details on the jp morgan deal to acquire first republic. >> we are watching the biggest u.s. bank gets bigger a

i like the valuation and setup into the second half of the year >> what about you, jimmy some qualcommpretty levered to the continued strength in the auto industry by virtue of what you said about cliffs and nxp. >> qualcomm has been a real thorn in my side, no question about it, and the turnaround in the hand set market has taken a lot longer than expected jpmorgan's analyst did an interview with management yesterday and they said they don't see that turning around anytime soon what you're looking for is for internet of things and automotive to pick up the slack from hand set. that's going to happen i don't think it will happen over the next quarter or two but at this price for qualcomm, i just find it hard to sell. i'm going to hang on to it even though it's been disappointing nxp based on what you were pointing out and what i'm seeing for automotive production, inventories still need to be filled, nxp should be doing good with production of autos >> josh, you mentioned the smh, the semis up 30% year to date. it hasn't gotten a lot of play maybe nvidia and amd and some of the names m

qualify come, i love the story of qualcomm.ly what they were able to do against all odds. danielle, we always appreciate you. you always help us make money. >> thank you. charles: folks, coming back, a backhanded compliment from the economist is a reminder how astonishing america really is. i will break it down in "my take". ♪. century lithium is advancing their clayton valley project towards production, with the goal of becoming a domestic lithium producer for the growing electric vehicle market. nevada's lithium is the key to america's green future. century lithium ♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation. ♪. charles: well my next guest

ian: qualcomm was talking about mobile-related. one of the things qualcomm is saying is you can't do this all over wireless, over the internet because data centers are too far away. if you want that instant response, if you want chatgpt to tell you something meaningful, you need a phone capable of doing it. there's a lot going on and a lot of opportunities if you believe hype. caroline: let's dig into the hypertext. ian king, thank you so much, giving us a healthy dose of what is reality and what isn't. let's look at the ultimate opportunity here. a 3.4 billion dollars under management. someone who has been thinking of decades of ai and i'm interested in your perspective as to whether nvidia is the picks and shovels you want to be in. they've been it for crypto, for gaming, is nvidia the place to be when you want to be at the ground level for ai? >> that's a great question and thank you for having me on. on one hand, nvidia has the picks and shovels and they are actually generating applications being used at enterprise currently, s

qualcomm is beaten up, for a host of other reasons. but when you look at mamd, that stock hasn't been eaten up micron, which is interesting, what's been the pixie dust lately a.i. and what does a.i. need to run on nan. so, this, to me, is all a buying opportunity, because it's not so dependent on china to begin with on dan's scale, this was one of the lowest that was dependent on china. i think it's worth a visit on the buy side >> 11% of revenues from mainland china. mike khouw, it seemed like a warning shot, dan had mentioned, i mean, this is, you know, the chips that are needed for critical infrastructure, that's a small percentage of what microsells into china. so, this is the way it feels on this scale, but we can rachet that up. >> yeah, i think this is a much more symbolic type of a gesture, for sure consider wpg in taiwan, they actually generate more revenues for micron than basically all of mainland china does, and as you point out, the affected areas, that's not going to encompass all of that 10%. i think dan's really getting

qualcomm, there was a quick little note. they say potentially they could stop paying their payments maybe qualcomm would be affected but the united states right now needs to get other allies on board like south korea the two names we talked about. or else this could escalate a lot further. it shows how intertwined all of the supply chains are right now. lastly, kelly, there has been tension. micron sued a taiwanese firm several years ago. that could be part of the reason mining kron was a little bit of this target in this escalation. >> thank you very much. >>> let's goat bertha coombs for the cnbc update, up to the minute. >> hi, tyler heefrm's what's happening a that hour. russia is claiming it was balled what it calls a group of saboteurs. they were fighting in a belgoro region. >>> authorities are investigating an apparent gunfight at an off-road vehicle rally in baja. gunmen in one vehicle opened fire on the rally saturday afternoon. they believe it was an organization of org niced crime groups the suspects have not bee

an xpi and qualcomm are how you're playing the chips this week, not a terrible week, they're up 2.5%. amd, broadcom, and on and on at what point do you worry about i have not and i need to get with the haves >> good question by the way, we can extend -- i will stay on the microscopic end of the chips but it does represent the divergence between the equal weights and the nasdaq here is the thing. that divergence can resolve itself in one of two ways. either the big names can come down i don't think that will happen too much operational power at the nvidias and marvelles but i think the laggards will come up. let's describe what the laggards are, qualcomm, smart phones, nxpi, automotive, intel, more the overall general compute, laptops and desktop computers. why would those names come back? they would come back if nick activity is much stronger than people expect. this is the debate we've had all year, scott, and i don't know if you remember last week, we started out the year we'll have a crash landing and then went to no landing and back to crash landing. guess what we're headed for ag

become a partner in hope today. >>> let's get a quick check on qualcomm, down after guidance came inemand the company says it has not seen evidence that smartphone sales are recovering in china. remember, this could be somewhat of a read-through to apple we'll have to see when we get those results after the bell shares of qualcomm are down 5.5% >>> meantime, turning to the growing worries in commercial real estate, we got a new record now for empty office space our robert frank has some numbers on that. good morning, robert >> good morning. those numbers showing manhattan has 94 million square feet of empty office space, an all-time record they can space up 75% since pre-covid. president overall vacancy rate now at 17% there are no signs that this is going to improve any time soon new leases were down 44% over the same month last year and the office occupancy rate that's how many people are actually coming into the office right now, that's been stuck in manhattan at around 48% for the past year. the reits with high concentrations in new york office space seeing big stock declines vor

qualcomm, yes, it is a little bit on the slow side here. we're closer to the lows i think in the long-term, qualcomm has nice leadership within its unique space, and i do continue to buy this stock. i think it's a great bear market buy. >> okay. danielle, we appreciate it, thank you. >> thank you. >>> at some point in this three hours of show we need to talk about tech we got to talk about this jack dorsey elon musk story >> oh, yeah. >> i mean, it's unbelievable that elon musk who had been so vociferous in his support -- >> jack dorsey had been so voe s sif rous is now saying he thought the whole thing was a complete mistake. >> it hasn't been going so well. i thought you were going to say steph curry honestly. >> we can talk about steph curry if you like. >> most points in a seventh game ever. >> and the devils and rangers are going to final tonight. >> boston got kicked out last night. >> i haven't been following. >> we've been to the games. >> the bucks are out >> that i did not know >> crazy >> but you're right, i want to talk more abo

>> china needs qualcomm, china needs intel, china needs broadcom but it doesn't need micron.he chips that micron makes are basically exactly the same as the ones that samsung makes. literally, you can drop them into a piece of electronics and put went out and put one in but you cannot do that with other products from those companies you mentioned. that's what's going on here. scarlet: that's incredible because micron's memory chips are pretty standard components as opposed to the nvidia graphics chips. much is china giving its own domestic industry some time to bloom? >> if that's the plan, we are talking a decade or two before they will have equivalent capabilities. this is being seen as more of beijing having to take it on the chin. we've seen these actions by the u.s. government against chinese technology companies and beijing has had nothing to fight back with apart from micron. it can take a swing at them. scarlet: thank you. i want to bring in the washington angle on this. we have kailey leinz. as we see this back and forth between beijing and d.c., what do you think is

on the flipside, qualcomm has a negative read. overall, the total market share for iphones is shrinking. they reached out to apple and it is not great. they said their modem only customer is ordering fewer parts after stopping of earlier in the year. that is not great. apple after the bell today. the real story with an smp is pac west. it has halted again, so down 51% but no idea how far it is actually down. just allies saying it is false -- western alliance saying headlines are false. guy: it is hard to decipher reality for what is going on within the market. we are at that point -- we have been here before in other crises, where it is a difficult phase for investors, regulators, and government to navigate. social banks are also a part of the story. some would argue they may be the cost of what we are seeing in the banking sector. today was the ecb's turn. yesterday, the fed. ecb president christine lagarde signaling the central bank in frankfurt is not done. here's what she had to say earlier. >> the inflation outlook continues

headlines are currently saying, because broadcom isn't already a key supplier to apple, along with qualcommctually make the chips themselves. both those companies rely heavily on tsmc and taiwan to actually build the chip. so that isn't going to change in the very near term and take a long time for that to change. so although obviously relying on american suppliers for design, there's not a lot of difference between what they're doing already because they don't rely on china for design really at all at the moment. yeah. and we said there it's a tit for tat battle, isn't it? china puts restrictions on us made stuff, america puts restrictions on chinese made stuff. it strikes me that in a trade war like this, the only people who lose out are consumers. and consumers and also the us providers, because the fact that there's a restriction on what us companies can supply. china's manufacturing industry is hurting the us suppliers as well because the that market is about half the total of the supply market for the chip manufacturing equipment. so it kind of is a little bit of shooting yourself in

. >> let's say you're worried about what qualcomm said because china's weak indonesia.hat i'm saying is, you put these other countries -- by the way, you give them the iphone 5 and the 6 and 7. they get hooked. remember, 2 billion people on facebook next thing you know, you have whole countries that you never thought should be compared to china when you add them together are china, except for the fact that the people aren't 70. >> right and so, they have been able to have great traction in these developing markets >> which, together, are faster and better growing than china and don't have any competition, and then india was mentioned multiple times when i spoke to tim. >> by one count, 18 times on the call >> yeah. >> india and macro got 21 >> see, i didn't do chatgpt on that i actually tried to do it by hand shows you where i am but tim cook is making a case that those of you who are focused on china are being left behind by events of course, they have four or five in china. they're crushing in china. but the idea that cristiano amon, who is the ceo of qualcomm, and i

thank you for joining us >> qualcomm sponsored by global x etfs. jack otter: welcome to "barron's roundtable" where we get that behind the headlines. the default deadline approaching with no deal passed through congress yet. i will ask the head of foreign policy libby cantrell what comes next. payouts are in pace to be cutting 2024. social security system can be fixed before that happens? what does it mean for future retirees? grab a book. we will tell you about the tiktok trend that is boosting sales for authors. stocks ended the week mixed, powering tech stocks. nvidia's huge earnings report got the attention, apple and broad.com announced a deal for supplied chains. weight loss drugs, the injection therapy. ben levisohn, carleton glitch and al root. post covid interest rates going up, value stocks, it is all about tech. ben: back to 2,020 one with this market. i was bearish when it comes to the dow and i was right. the dow is not doing anything, lost one% one% this week even though nasdaq, has now outperformed the dow by 22.5%. the most since th

yahoos, the ciscos, look at those forward p/es in very early january of 2000 192 times forward for qualcomm 739 times for yahoo! 134 times forward for cisco. pull out a little bit and you will see where the ai, quote, unquote, stocks are today. alphabet is 22 times microsoft is 31. okay, nvidia is 63 amazon, 76 meta is almost 20. i'm not suggesting by saying this or showing any of our viewers this that today's valuations for these stocks are justified, but what i am saying is there's a big difference to where we were then and where we are now as we are thinking of the hottest trends and we're talking of them in the same way and making comparisons from today to the early 2000s >> i think you have to step back and look at what i always call the total addressable market and you're at $183 billion in ai today, and it's expected to grow to $2 trillion by 2030 it will grow 37.3% per year between now and 2030 it's going to contribute 21% to gdp in that time frame, and only 25% of companies out there are actually using ai. so my point being, they can grow into even these multiples which aren't real

skyworks isn't blaming apple and qualcomm is.s expected. skyworks says customers are stuck with an excessive number of phones that they don't need to buy more chips. microchip makes analog chips their ceo on your show yesterday and told carl china's recovery is also muted and seeing that too. and now i'm going to make a huge pivot but a stock mover is payments processer paypal. i spoke to the ceo yesterday the stock down 11% even though the company raised its full-year eps, earnings per share. what i noticed three red flags active accounts decline quarter over quarter for the first time since 2014 the second point reduction in its operating margins for the second half of the year. the cost cutting can only go so far. lastly a drop in unbranded sales, which really drives the majority of growth not a good thing last but not least on the call the company said they're still in the hunt for a new ceo. the current one set to retire by year end they don't have a name yet. >> yeah. it's weird it's a $75 billion company and no successor,

from anyone from the most respected well-versed in technology investors, including google gp morgan qualcommd alibaba a. then, after years of promise, the company showed its first device, which turned out to be expensive and without any directly supernatural miracles. eh , all amazing videos, as it turned out, were not filmed, but drawn by special effects specialists from peter jackson's company. there is the most that drew graphics for the lord of the rings. the clip, while miraculously avoiding bankruptcy, the founder was fired and attracted another billion dollars of investment, and six months ago they released the second version of their augmented reality headset. still without super miracles, still expensive, focused on the corporate sector, just like the same microsoft, but magic lip 2 was called by many the best solution on the market; now we are talking about the fact that the development of magic clip interested the zuckerberg brand. which are investing $10 billion a year in creating meter-universes and tools for working in virtual worlds, and reportedly this is not a joint project

under pressure all day today >> and the question is, where are we going to hear that qualcomm warning that was implied against apple and maybe it's in the quarter to come. i -- you know, the services growth of 5.5% every year is not the growth we saw when the stock rerated on the services multiple but on an install base of $975 million, which tim cook just announced, which is up $150 million year over year this is why the stock gets what it gets. when you have a services business that's now annualized around $85 billion, it explains where we are i do think the bank of cupertino is underappreciated by investors in terms of the impact it has on the stock. i've said, like, you know, certainly some of the folks that believe apple's best days relative to the market are behind it, i believe that. i look at a ratio of the -- apple to the s&p and it runs into that resistance around .41. that's where you get and i think that's the problem i do agree, jeff mentioned the defensiveness. there's no question. we had this chat last night, i think it will be everything in these numbers that allow app

what any kind of future problems throughout the rest of the year on the demand side we heard from qualcomm basically implying apple isn't buying as many modems as last year other suppliers are showing a little weakness. apple, what we're learning so far this earnings season, carl, is apple is immune to a lot of the issues its rivals are experiencing we heard from qualcomm saying, no one's buying phones in china, at least on the android side i talked to tim cook saying china reopening has been great for us and people are buying iphones, especially the more expensive pro models like crazy. apple seems to be in a category of its own when it comes to demand still, sales will be falling throughout the year. >> incredible steve, thanks. steve kovach on apple. >>> breaking news out of washington on the debt ceiling we'll go to kayla. >> the white house is weighing the possibility a short-term extension to avoid a default on june 1st and negotiate with republicans. the biden administration and congressional republicans have suggested that option is not preferable my sources have described it as a

qualcomm shares fall after a downbeat forecast signaling demand remains sluggish.to $8.9 billion fell short of estimates. we demand has led to a depth in ships which are their main source of revenue. profits at the mep missed estimates. cash profit was over 4 billion aussie dollars, but the shares have underperformed overall and former national and 10%. much more to come here on different asia. this is bloomberg. -- daybreak asia. these days, our households depend on the internet more and more. families grow, houses get smarter, and our demands on the internet increase. that's why we just boosted speeds for over 20 million xfinity customers, on us. so you get more of the speed you need for day and night streaming. more speed you need when you're work from homeing. and more speed you need as your family keeps growing. check in on your current speed through the xfinity app or upgrade to the speed that's right for you today. >> what the fed was trying to do is we don't know if we will pause or not. >> i think we have seen the last rate hike in the consecutive rate hik

saying i can't do that, that's fine there are other things can you do to make money in the market qualcomm been very good to me i think it will be over the next long run to come >> the other stock you own, and i mentioned you and josh do, is oracle where josh declared today the breakout in those shares is official what do you mean >> this stock has now taken out its pandemic-era tech bubble high, and i think from here probably very few people that have losses in the stock what that does technically it removes a layer of resistance, and the buyers are obviously firmly in control here this coincides with news yesterday they got approval for fed ramp, which is basically how a company like the oracle cloud infrastructure business can work with government agents it's a higher level of clearance that not every service provider gets so the news flow is great. the customer wins are great. the cloud business is on fire. nobody really thought of oracle as a cloud business until about three months ago you could see it in the share price. and now i think the stock can roll higher. it's a long time in

thank you for joining us >> qualcomm sponsored by global x etfs

rishaad: back with bloomberg markets, we look at the business flash headlines, welcome shares -- qualcommish, third quarter revenue may reach a $.9 billion, below analyst estimates. bloomberg learning that hsbc pushes back against calls from its biggest investor to restructure, urging the bank to split off its agent operations, investors have pledged to back hsbc at friday's and will general meeting. hitting a record but shy of analyst experts. coming from interest rate hikes, cash profit over 4 billion aussie dollars you -- aussie dollars. the bank outlook remains uncertain due to rate hikes and inflation. yvonne: a lot of questions to ask the ceo, ross mcewan will join us. we have -- leaving creditors and consumers in the lurch, details ahead. we will talk about tata steel at its earnings being hit by a european demand, we will look into that with the company's boss. this is bloomberg. ♪ we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've take

qualcomm and the u.s.gest producers in this area and also the most advanced manufacturer. so to replace qualcomm, china may need to find supply in a timely's comedy called mediatech but picking a taiwanese company as a replacement is not a very practical choice for the chinese government. in the sense it is quit unlikely for china to do so. >> thank you so much for the very cumber has a discussion. let's look at u.s. futures as we go to break ahead of the china open. you can see here that we've had the s&p futures at about a third of a percent year. a big rally occurred in u.s. stocks went optimism over the deal that is on the table now, the debt ceiling deal really started to rise. that is it from daybreak asia. this is bloomberg. ♪ ♪ e your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ ♪

francine: this comes as relief for investors because we had qualcomm, which is a supplier, warning about downturn ahead this week. so how do you match up the two? aggi: it is something depending on the suppliers of these big tech companies and the consumer products the end. also saw intel saying they are seeing green shoots this quarter after the lackluster pc sales of the last quarter, so it is about matching that supply to the consumer demand and making sure those two line up going forward. ring the pandemic, there was oversupply and real demand, so now it is about, now that countries have reopened, it is about finding that balance between the suppliers and consumer tech itself. francine: thank you so much. aggi cantrill there. we also got sidetracked. we were talking about apple and we had a conversation about the virtues of eating an apple a day. tom: the bradley is actually front and center. it is a healthy start to the day, not exciting. francine: there we go. tom: let's have a look at iron ore plummeting in the sector -- session. it is well below that $100 a ton level, this under

they have repeated what qualcomm said, which is china has not come back as quick as we thought. the inventory we said was going to be burned away by the middle of the year looks like it will be hanging around into the second half. supply is kind of getting better. the position is improving. but demand, where is it? caroline: nvidia was a drag and you pointed out this has been a bellwether for they chip sector on the day. but nvidia hit a 52 week high yesterday. are we going to get a bifurcated market, are we going to see chipmakers and designers that are on ai doing well and those that are not languishing because they are consumer exposed? en: that would be the way to -- ian: that would be the way to look at it. the only green spot was a&e and that is a play on the future of ai and what investors are expected to happen. ed: i am reading the kicker in your story. goebel foundries is a tiny player in a world dominated by tsmc and samsung. did you hear they are taking market share from those bigger peers echo -- peers? we may have lost you. good reporting, bloomberg's ian king join

quite surprising considering the qualcomm readthrough is pretty grim. ed: the iphone is center.hey beat expectations on the iphone. year-over-year growth 1.5%. revenue declined year on year over the second quarter and if you listen to the guide the cfo gave, they are on track in the current year for a third consecutive year on year decline. emerging markets are at the heart of the story. india, they faced fx headwinds at the top line and bottom line, which they expect to dissipate on the bottom line going forward. but india, india, india, and were smartphone demand is just not there. guy: why is apple so difficult to call? is it because of that increasing dominance in the emerging markets within their numbers? everybody was expecting this to be a difficult quarter. apple, in some anyways, should not be volatile but it is. ed: remember in the december quarter how impactful supply chain snags were. the never that caught my eye was the inventory days being more than 12 days of inventory, the highest level since q1 2019. it looks like they have got the ability to supply those produc

customer, 20% of sales last year so any insourcing attempt by apple could have been a problem for qualcomms removes that overhang for the next few years one of the most underappreciated parts of broadcom, which is its presence in ai, so broadcom today is number one in the cloud switches that are complimentary to what nvidia does when it comes to the outfitting of those ai data centers. especially google, meta, develop in-house custom shares that can address a lot of the ai needs. so the good news is, this lets investors focus on what is important for broadcom >> sure. although the way the stock is behaving, it is becoming more appreciated. >> it's a company that is generating 50% free cash flow margins and raised its dividends at a 25% compounded rate >> why should. the market give it a 70 times forward multiple or whatever it's giving nvidia right now >> because it's a lot more diverse div diversediversified now that risk is out of the way, it helps investors refocus it's a lot more diversified name, there's a lot of software aspects, which i lowered growth for broadcom so i would classif

out your stock picks kind of explain the market elevated recession concerns but microsoft, amazon, qualcomm. so is it kind of like growth when growth is scarce kind of idea here? >> well, it is more so sticking with the ones that we know for a fact so as we look at the ai hype cycle that has led us in the last couple of months into positive territory on the s&p save for what we gave back here in may, i think that it is sticking with the stocks that we know for a fact are going to be the leaders out of a downturn. so if we continue to surge, tech will definitely have to lead that surge and if we are in the middle of a recession under our feet, that we can't see yet, it is a safe assumption that the names that willlead us out of that are th same mega cap tech names that seem to be the reversion to the mean for anyone looking for that safe haven trade >> brian, you can react to what malcolm said and also respond to the interesting story in the "new york times" about how companies are continuing to raise prices even though their input costs really aren't rising anymore. and in fact in some case

they're regarded as being a company that's very, very tough, not qualcomm which is being viewed as apany that's almost rogue by some people. i think people felt there was probably going to be a chance that broadcom is ripped out. boy, were they wrong david, hoc tan has a reputation of being ruthless, ruthless. >> yet he still got the apple deal. >> he did. the deal on my radar still is the m ware deal. the regulator in the uk, perhaps the viewers are aware of due to microsoft's acquisition of activation that's the next one on the docket under pressure from the prime minister to be more pro business very much unclear what the positions are going to be on that deal. an important deal for hoc tan. >> if he doesn't do his deals, he can't make his numbers. that's the way he does his numbers. i know that sounds ruthless. he does deal after deal and then fires a lot of people. you remember symantec. >> i do. he's on that cycle. >> i don't think that he'd disagree with us. >> he would say no i've asked that question before, do you have to corporate to do deals -- >> no, i mean he fires peopl

you can go into some of the tech names that are not the high-flying names but a name like qualcomm or you can go into. staples as well, like a coke or a pepsi. but at the same time, have a little bit of sickically cattle. we're looking at it a little bit from the home building side because we're starting to see housing pick up a little bit you could look at a llowe's or cap. be choosey and make small moves. >> you don't want to swing for the fences what's coming up in the future that's making it a little bit tentative, and is the fed decision going into balancing your decisions that you're making >> it's interesting, yes the dead ceiling has added a lot of liquidity to the market, which a lot of people may not realize. because the treasury has pulled out, lots of liquidity has been pumped in. as we go through the debt ceiling issues, that liquidity is going to come out of the market and we'll see the market come back. the s&p fell 13% following the finale of the debt crisis issues back in 2011 so i think there's still quite a bit of volatility we have to go through. debt ceiling part

. >> i was going to pick up on what the chip makers were saying qualcomm shares trading lower on the back of disappointing smartphone shipments it seems to me that perhaps this strength in apple this quarter is an anomoly. >> it is an anomaly of the company doing well in the emerging markets it is a view that everybody wants to buy an iphone, but not everyone can afford it the changes are sensitive to macro conditions the macro outlook is pretty bad. i don't think this is something you can rely on to drive apple the through the rest of the fiscal year and through 2024 that's why i don't think it the will be repeated in the coming quarters. >> richard, what is the take on the opportunity in india we were covering the launch of the new apple stores in india ana couple of weeks ago in delhi and mumbai could this be big fr. or apple some stage >> that is unlikely. if you draw p comparisons to ina and china, yes if you look at india's per capita and china's per capita, there are difference indians would like to buy the iphone in terms of total numbers that can actually afford it in india

>> when you look at apple, this is more diversified away from qualcomm.e's case, it needs to diversified naches from one market which is asia but broaden its partnership network. they want to source parts across the world. alex: i have to think about apples big push to bring in homegrown chips and ask the question -- does this mean these radiofrequency chips for 5g, that apple is considering bringing in house for the creation. does that mean maybe the effort by apple is not necessarily going as well as they had initially thought? >> apple is never going to do these things just for cost alone. they will go for the best part that's out there. at the same time, not for a cost reason but performance, it is designing all sorts of parts so the next generation of phones or device coming up can achieve what it wants to achieve. sometimes the partners cannot provide that. i cannot say whether the in-house efforts are not going as planned. as i said, it's just a planned way of looking at things and saying i don't want to be dependent on one supplier for all my need

companies such as boeing, qualcomm, pfizer had employed dozens of c.c.p. members in their chinese facilities. americans are infiltrated, bla blaming ivory towers in washington, d.c., and wall street for being slow to punch and handing our fragile dominion over to globalists. we ought to do better. we ought to protect americans and we ought to preserve democracy. this is why i am an unapologetically pushing back on the c.c.p. and calling on the house judiciary committee, the d.o.j., and select subcommittee on weaponization of the federal government to investigate the c.c.p. infiltration on the u.s. government and do all they can to free miles. the c.c.p.'s most wanted prominent critic, miles, claimed political asylum in the united states alleging persecution by the c.c.p. he has been here for about six years and just last month gao was arrested and denied bail for being pronounced a flight risk, in this case, the charges is part of an organized campaign of political persecution brought against him by the c.c.p. as a matter of fact, in november of 2018, geor

qualcomm and kraft is out with the earnings the fed decision is announced at 2:00 p.m.with the decision expected at 8:30 p.m we get results from ab-inbev we have friday jobs report at 8:30 a.m. and we have earnings from cigna and warner bros >>> we have the matter of first republic let's bring in sarat sethi to guide us through the trading day ahead. he is the partiner and manager f his firm how does the jpmorgan chase deal influence the trading day ahead? >> i think there was uncertainty here after the earnings, investors were concerned what with will happen here. you were seeing deposits leave and people and wealth management practice leave this takes away with the uncertainty for the market it takes away the troubled bank. will there be ramifications? what is the consequence? i think what you have seen now is the agreement where the depositors will be taken over and you have some type of guarantee. i think that is important for the market because you just don't want to see things unravel and people say what will be the next one >> we are looking at the futures, sarat

all signs from qualcomm is that chipmaker has diversified away from just pcs. up by 8.5%. this is bloomberg. ♪ mmmm, your morning coffee hot delicious comforting. but by the third or fourth cup, your stomach might not feel so good. if that sounds like you replace your afternoon cup with 5-hour energy. it's perfect for when you're feeling coffeed-out. coffee in the morning... 5-hour energy after. your stomach will thank you. discover 5-hour energy. ♪♪ caroline: let's talk artificial intelligence with jeffrey hinton -- geoffry hinton leaving google and joining his voice to a growing chorus warning about ai. the deep minded ceos set down with bloomberg originals talking about how the industry is not only losing people but attracting a lot of talent. listen. >> i would say it's an incredibly dynamic field right now. all sorts of things happening, research going on. literally in the last six months probably hundreds of thousands of people, talented engineers and others, have gotten into the field. i think they have come from many other fields and decided that maybe they were no

>> it is the stocks get hit like qualcomm did and sky works did, and they bounced back that's where peopleant to be by the way, the bull case, when i really owned the semis broadly, they are now part of the industrial revolution. it's just not about pcs anymore. >> we obviously saw that, and those stocks are a long way from where they were in the height of the -- >> yes >> -- the pull back in the market >> deservedly so >> jason snipe, nvidia this week, right? >> yeah, and i think it will be positive >> it better be. >> it has to be in a lot of ways the stock -- the stock performance this year has been amazing. stock was up 116%. what i will say about nvidia, especially as it relates to a.i., and as a company that serves as the infrastructure and support for the chip being in such high demand and all the companies relying on them for support to grow, and nvidia sits right in the crosshairs of that. >> given what has happened with a.i.-related stocks, and that one, you know, obviously the run that they had off of the lowest levels, that will be the best tell near term on where these stocks

then we hear the opposite story from other manufacturers, especially qualcomm, which supplies chips forwas talking to jim cramer about this a couple days ago we're scratching our heads, what is going on with smartphone demand, especially in china? it's almost as if the country woke up -- or opened up and everyone went out and bought iphones and nothing else i'm curious to get more data from the retailers to get a read on what's really happening over there in china >> historically, steve, we can all recall times when you do have these reports, whether from an analyst or from a news outlet about the supply chain, trying to figure out the channel checks and what the contractors are up to in terms of volumes it hasn't always matched up that well with what apple itself eventually ends up reporting, whether because they're getting pricing or just have a clearer window on demand >> that's right. this loop report does point out they expect the back half of this calendar year to be relatively okay compared to what we might be seeing in the june quarter. part of that is because new iphones are go