what are the investments that softbank is going to make to capitalize on the a.i.oom the past couple years. i was literally listening to the earnings conference with the cfo. he was saying that arm is core to the company's shift to a.i. he was looking at the way the assets held by softbank versus 2020 and saying arm is 48% of the company's assets held versus just 10% in 2020 alibaba, once 48% of the assets, now near zero. there is a big shift with the company and clearly arm has been a core part to the way that mashi son feels they can move forward. >> you spoke to steve about this earlier, but is mashi son going to move this forward you don't always need to be a first mover, but the first push up could be significant. >> you expect softbank to be early in a.i there is an argument to be made mashi son missed some the early opportunities. we are still in what is very early innings. a.i. has been around for a long time it is popcoming to the floor wih the chatgpt and now others are talking about it with microsoft and more opportunities in the space whether it is on t

can define something today -- softbank today.e saying softbank is undervalued do you think is the true value? >> there are two ways to answer that. if you look at the price-earnings multiple and comparable multiple for internet global megas and the growth this company is giving, it is probably 50% undervalued right now. another way to answer the question it is to look at the net asset value. the vision fund stakes and someone, and on a net value as it basis, softbank is probably even more undervalued than what i said. it is probably 60%, 70% undervalued. this is one of the most misunderstood large japanese companies. it is growing fine even on visible earnings. it is undervalued, and the potential in division fund is very large, including in this new enhancement of potential move into ai semi conductors. annabelle: how many other misunderstood or undervalued companies do you see across japan's tech landscape? >> a ton is the simple answer. we have $1 billion u.s. worth of investment in the japanese space, companies that make chip

it does not mean softbank does not have money. valuations have been recovering and the cash pile is at six went to trillion yen. they have money to spend and because of these factors we can anticipate more activity on the group side, we have to see how things develop to be sure. >> technology reporter. coming up, a closer look at australia's budget. the country is seeking to move beyond its bread and butter industries. more details on the future policy. this is bloomberg. ♪ and they're all coming? those who are still with us, yes. grandpa! what's this? your wings. light 'em up! gentlemen, it's a beautiful... ...day to fly. >> taking a look at market action this morning japanese bonds are trading here, 20 year yield rising to the highest level since 23rd teen. -- since 2013. 10-year yield spiking to a point we have not seen since last november. the changing market perception is coming through as to where the boj comes next. the governor we saw playing down the impact of the week could japanese currency on inflation but the tone of

softbank will report trimmed losses as the vision fund returns. softbank one of the key ones. bring in our tech reported. causes for optimism? reporter: yes, paying recovery upon the level so after posting a big loss we expect losses for that to have narrowed. this is thanks to technology valuations which helped the fund recoup some losses and there was a significant one-time gain from t-mobile options. a recovery. haidi: what are the implications for softbank? >> they have been selling quite a bit of their assets, looking at u.s. listed assets. we see that the total value of those assets have been reduced by about 29 million. share price declines of impacted the value drop, but the vision fund has also been offloading shares in key assets like coupon, doordash and grab. we're seeing a shift in focus as more attention is paid to greater emphasis on ai technology and new strategic investments are being executed for the group level and not vision fund, so it be interesting what happens here going. annabelle: is that something we should look out for? what are you looking for? rep

but the main focus is looking forward to softbank�*s ai outlook — softbank is the main shareholder ofholdings — which listed on the new york stock exchange in a blockbuster ipo last year. there is huge excitement around arm's plans to get into artificial intelligence chips as this expert from the asian development bank insitutue explains. i think this is really important because they are also providing services to a large us —based company. services to a large us -based company-— services to a large us -based company. services to a large us -based coman . ~ , , , company. and it is very good, this uk arm holdings. _ company. and it is very good, this uk arm holdings. ai _ company. and it is very good, this uk arm holdings. ai is _ company. and it is very good, this uk arm holdings. ai is so - company. and it is very good, this i uk arm holdings. ai is so important so with this kind of advantage, i think there is a very strong feature in the area of ai. we are used to hearing how bad being online can be for our mental health. but a new report from oxford university has found that the i

that would bode well for companies like softbank.ill continue to invest in al. there will be some potential effect on the track for the economies and society in general. right now, when companies invest in al, i guess that's being rewarded by the shareholders. longer—term, there are some questions in terms of ai replacing jobs and that kind of thing. i know earlier this year, the imf forecast that al could affect 40% of forecast that al could affect 110% of globaljobs going forward to varying degrees. i think that's something we don't know the answer to longer—term. that's a question that's only to be answered.— that's a question that's only to be answered. chinese tech companies — to be answered. chinese tech companies have _ to be answered. chinese tech companies have also - to be answered. chinese tech companies have also jumped | to be answered. chinese tech i companies have also jumped on companies have alsojumped on the ai bandwagon. how they stack up with leaders in the us the moment? i stack up with leaders in the us the mome

japan's softbank is also betting big on al, with a multibillion—dollar investment in its uk chip designth tim waterer from kcm trade, and asked him about the spillover effects he's seeing in asia. in terms of the industry in general, i think we can look at it as a case of a rising tide lifting all boats. because, you know, i think that forecast from inindividual shows that the ai momentum doesn't seem to be slowing down any time soon, which would bode well for the companies you mentioned there — taiwan semiconductor, softbank, courtesy of its investment in arm holdings. so i think that companies will continue to invest in al. but there will be some, you know, potential effects, you know, down the track for the economies and for society in general, i think. so right now when companies invest in al, that's being, i guess, rewarded by the shareholders. when they see the benefits on their bottom line. longer term, i think there are some questions, you know in terms of ai replacing jobs and that kind of thing. so something to look out for. i know that earlier this year, the imf for example f

the report adds that softbank which just reported the second straight quarterly profit is already in production talks with taiwan semiconductor dom. >> bertha, thank you. >>> the stock's recent wall could hit a snag as wall street faces litmus tests for the second quarter now we turn attention to home depot for the earnings tomorrow and walmart on thursday and comments on consumer spending trends we have april consumer price index and retail sales out on wednesday providing the fresh read and whether the fed's rate-cutting forecast is still in tact. let's discuss how to position your portfolio with raeann this is always a key part of the earnings season. it comes at the end, but it talks about what makes up more than two-thirds of the u.s. economy. how healthy is the u.s. consumer in your mind right now >> thanks for having me, dom the u.s. consumer continues to be strong. we are seeing strong spending trends we are seeing the jobs market which continues to be strong although we are seeing some softness lately. unemployment is ticking up slightly all in all, the consumer continues to

annabelle: we are tracking shares of softbank this morning. overnight we had a big drop in arm after it gave pretty weak guidance. so there are concerns around spending in ai in particular. do you think that is also becoming a thing and potentially impacting japanese equities if they are very exposed to this trend? julia: we think obviously the leading beneficiaries, there have been a lot of very high expectations going into earnings. so we don't think the earnings season as a whole indicates any real weakening in the demand for ai is a structurally think. having said that, the market has been quite optimistic for many of these companies going into the earnings season. that is why i think we had this pullback in the u.s. market as well as the japanese market. our broader thesis is if you look at the global economy in the next four to five years, many of your daily appliances will have a bigger ai component to it. it is the broadening out of the ai application that benefits things like your smartphones and tablets. this is where japan's industr

switching to another story, softbank laid out plans to get aggressive after reporting a surge in assetlet's bring in men jong lee. aiming to go on the offensive once again? reporter: yes, they revealed some positive results with profit on the group side which gets ready to do more investment on startups and technology. we did not see clarity on what companies or, they plan to spend on new technologies and we saw the vision find continuing on a shrinking trend where they are investing and busy. we need to see more from softbank on what kind of investments they have planned. >> what are we hearing in terms of the turnaround when it comes to the vision fund? we are through divestments. reporter: correct, the company releases quarterly data on investments and for the past eight quarters it has been disposables. they explained yesterday that this is natural because they are seven years into the fund and it is time to dispose of assets. when we asked about their plans, when they plan to pick up the pace, we did not get a clear answer on when they become more aggressive, we've come from the v

it's been led with softbank. bill gates is a fan, putting in further funds as well.nded in 2017. wayve wants automakers to install technology and the vehicles rather than operating the cars itself. i'm joined by the cofounder and ceo. when u.k. politicians talk about the u.k. being at the forefront of technology, companies like wayve come to mind. it's a massive raise. presumably it gives you a lot of runway. in terms of the deployment of this capital around this fascinating company, does it go on -- you build out your own models. i know how intensive that is in terms of cost. the infrastructure. how much of the funding goes towards infrastructure, how much towards the build out of the business? >> it is super exciting for us as a team because it gives us the capability to invest further in the spaces. we've been building for seven years now. being able to turn it into a product for the automotive industry. we will be investing further in increasing the data to be able to train ai. the scale of ambition goes beyond what we've seen from large language models today. we

. >>> overnight, softbank reported a $4.6 billion gain for the vision fund in the fiscal year ending in march. the performance of the vision fund helps softbank swing to a quarterly profit with bytedance and u.s. food firm doordash. the biggest gains of the year was the ipo of chip designer arm holdings s softbank has a 90% stake in arm. that stock up 1.5% right now speaking of arm holdings, a report from nikkei asia says the company is planning to launch artificial intelligence by next year it will set up an a.i. chip unit to build a prototype by next spring softbank is in talks with manufacturers including taiwan semiconductor to produce the chips and arm holdings are up 2.5%. >>> shares of gamestop are soaring this morning and one of the prominent backer is back keith gill made the social media post on x, the first in three years. this helped spark the meme craze in 2021. it was an image appearing to state he sitting up and paying attention. that's what we got. >> that's all it takes >> apparently. >>> protests erupted at duke un university's graduation ceremony as jerry seinfeld

. >> all that said -- >> when i come back to were a, obviously, a big win for softbank, which continuesinded that they owned a lot of nvidia in 2019 softbank a lot. >> everybody sold except for my trust. >> they sold in 2019 >> even though i named my dog nvidia, they sold anyway >> they sold anyway. >> that's so disrespectful >> even though they made money on the nvidia position, softbank, obviously, i'm sure they wish they had that one back >> by the way, arm can hold that because rene is delivering people misunderstood remember, it was just the iot, the internet of things, it was that one line that kept that stock down and every analyst, they pounced on that, but if you forget iot, which actually is going to come back in the second half, that stock could have a real run here >> all that said, jim, watching the labor market, zip recruiter with not such great comments about the labor market, at least year to date the stock's close to a new low >> we need that. we've got to have wages down jay's got to have that he has to have wages down in order to be able to do what we have to do at le

softbank has quietly sold off billions of dollars of a ssets from vision fund. it's all its u.s.ortfolio shrink. microsoft enters the mobile gaming arena. it will launch its own version of a mobile game store by july. it will offer discounts on in game items. snap is urging the government to develop a framework for dealing with social media companies. here's part of what he had to say at our technology event in san francisco. evan: fun, fast, visual. that's why we've grown through the changes. 800 million people. staying focused on close relationships that mean the most to us to, enriching that with stories, with a map. all these products help bring people close together. that's what's led to our enduring growth. >> tiktok specific poll. what is your opinion on the ban? totally banned? evan: that's probably a no-brainer. emily: but really. [laughter] evan: what's important is we come up with a durable framework to deal with national security. the u.s. has recognized issues but has been dealing with them ad hoc. that has implications for the economy. businesses in the u.s. have a

london—based artificial intelligence group wayve gets a huge cash injection from softbank, nvidia andour correspondent in rihyad tells us what to expect. plus: meet the british food producers spicing up their offerings for asian buyers. we begin in the us, where the troubles facing boeing have become even more serious. the us air safety regulator has opened a new investigation into the aircraft maker after boeing acknowledged that it might not have carried out proper quality inspections on its 787 dreamliner aircraft. it follows another probe earlier this year into the safety of its 737 max planes, one of which suffered a mid—flight incident in which part of the wall of the plane blew out. from new york, the bbc�*s michelle fleury has more. boeing's work is once again in the spotlight. america's air safety regulator, the federal aviation authority, has opened a new investigation into boeing after the company came forward and said some employees had committed

japanese conglomerate softbank is leading an investment of more than $1 billion into uk self—drivingrt—up wayve. the funding is europe's largest artificial intelligence deal to date. nvidia, along with existing investor microsoft, are also part of the investors. the london—based company develops autonomous systems in cars — self—driving, in short. live now to janet mui, head of market analysis, rbc brewin dolphin. how big a deal is this? this is a big deal because this is a huge investment as you mentioned over $1 billion the largest in europe and ai start—up so far and it has been a long while since the uk ai scene has seen such a big investment, it was since 2014 for the google deep mine. this is a huge vote of confidence for the ai scene and this is what the uk wanted to become it aspires to become an ai superpower so this is great news for the uk industry. great news for the uk industry. great news indeed. — news for the uk industry. great news indeed, it _ news for the uk industry. great news indeed, it is _ news for the uk industry. great news indeed, it is a _ news for the uk

. >> and softbank owns about 90% of the shares?> i think that's why we've seen some really big moves. it will be interesting to see what happens some of the lockup periods will end soon there may be some selling as investors continue to hold on. i think that's going to be an interesting one to watch out for in the coming months. >> arm reports after the bell. that's going to do it for us one quick look at the european markets. mostly higher. the outlier down half a percent, seems to be trading lower on sympathy of the bmw report boerse also lower. i want to take a look at the u.s. futures kind of a muted start to the day. this follows a fed official says rate hikes may still be on the table. we'll be taking up that story and much, much more when "worldwide exchange" comes up right after "street signs. that does it for us. i'm frank holland. hope to see you in just a few minutes. when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and ru

the venture is led by softbank group.h injection underscores the continued demand for ai, especially among the auto industry. the evaluation of wave, not disclosed. tesla faces a july 1 deadline to submit information to u.s. regulators over their concerns about its autopilot system. the carmaker issued a recall of over 2 million vehicles in december on reports of drivers crashing while using the future. the national highway traffic safety administration says it has opened up a query as to whether tesla's software update was sufficient in preventing crashes. today's the special competitive studies project, and it is kicking off its first-ever ai expo for national competitiveness in washington. i sit down with the scsp chair and former google ceo eric schmidt to discuss how the u.s. is going on in the ai race. eric: the u.s. is way ahead of china and everybody else, and i think that is going to continue for a while. to me, national competitiveness is the challenge for the next 10 or 20 years, because the chinese are really

softbank will support them financially. nvidia is higher, .3%.t had been lower after information reported that china is instructing domestic companies to stop ordering chips from nvidia. we have a big segment coming up, everything chips. there are a lot of individual stories to pass through. a lot going on. caroline: a lot of discussion on china vis-a-vis the u.s. coming from key leaders in u.s. government. we had a great conversation with janet yellen earlier, annmarie hordern sitting down to discuss china in particular. she feels china is not playing by the rules on trade, going on to say that maybe we will see china escalating in the so-called tit for tat on trade. listen to what i treasury secretary told us earlier. >> he believes it is unacceptable, as i do, to be completely dependent on china in these areas. he wants to make sure, given that china is really not playing by the rules in the sense that they have an enormous subsidies in critical areas of advanced manufacturing. caroline: focus on increasing tariffs at a time when there is anxi

even softbank is shifting focus with a.i. ultimately, when you see that the spend of a.i.w beginning to pick up a little bit more, one wonders is it because these companies are now seeing where the direction is for generative a.i. which will help their businesses or is it just too late? you actually missed the boat and that's what investors are looking at in regards to this. nvidia, as i was speaking to analysts, they are the ones who are earning money from a.i., not having to invest in a.i. which is a totally different company. they raised their revenues from around $4 billion to $30 billion in just 12 months. can that flow continue? these numbers will be a clear sense of where to from here with ra regards to that. the nvidia numbers are important. we have word from the fed speakers and the rate path is one of keen focus. we will unpack that and get you some of those conversations and the fed minutes gives you a clear siense of where the fed i so far. we have the italian market going down so far and the rest are slightly higher. can the dow surge more? we will see later o

on monday, softbank will probably report trimmed losses as its vision funds returned to profit. stay on tech. and superpowers led by the u.s. and the european union, funneled nearly $81 billion into producing the next generation of semiconductors. this escalates the global showdown with china for trip supremacy. the u.s. industrial policy reporter mackenzie hawkins has more on today's big take. mckenzie, truly enormous amounts of money being spent here. can you give us a sense of the scale of the spending and how it is being deployed? mackenzie: we have governments from washington to brussels, to tokyo and seoul, pouring billions and billions of dollars into semiconductor production. this is because the pandemic revealed there was an overconcentration of supply chain, especially for the most advanced semiconductors in east asia and particularly taiwan. you have this push led by the u.s., and then quickly followed by a lot of u.s. allies, to not just make sure we have the supply chains safe at home, but also catch up to decades of industrial policy in the sector from beijing. pau

softbank spending more on a.i. for some companies playing catch up, they are putting a.i.o the ipads with apple. is it not too late? the market is now going to surely reward you for the money you get from it, not necessarily from the money you spend on it. >> i'm in agreed with you and we do not believe that meta, google, amazon, apple, microsoft, a.i. spenders are where you should be. we are in the picks and shovels. the ones receiving the cap ex. we believe the market is moving toward data centers and electrification and electric grid equipment and the a.i. supply chain in asia is a big beneficiary. while the large companies in the u.s. like nvidia or broadcom are beneficiaries, there is a huge supply chain still coming. the cap ex spend with meta will continue to do the cap ex spend ti despite the announcement. the use case is meta is seeing the return on investment and engagement. they will continue. we think that this is one of the technologies which has hit an inflection point and wide scale adoption is just coming down the road. >> you have to be picky. if you look

softbank will focus on that as well.pple finally touted ai within its devices, particularly in its ipad and the possible tie-up with chatgpt. it's not like appalshop the eyes out this week. it doesn't seem like there was much to say about that. openai released gpt 4.0. google announced new shares as we just spoke about. has it gotten to the point where there's too much happening in the space and it'sing the rubber hitting the road when it comes to ai? monetizing it? it actually being seen if your profits? the question is who is making money out of ai? is it just nvidia, or have the other tech players also begun to make money out of it or are they spending money on it, which obviously helps the likes of nvidia and tmc and the chipmakers. i think this is where divergence starts to come in. we'll see how this fairs over time. i'm not saying one or the other is possible, but certainly anything can happen in play. it's a very interesting market to look out for. >>> coming up on the show, it's less than six hours until we get

my only word there, softbank own as ton and i worry about a secondary but, as long as things show upe'll go after it. stay away from areas, there are some bad shape areas right now. this just comes from as i always say to you, we'll scan 1500 names tonight, 200 sectors, every country, and stay with the uptrends and completely ignore the downtrends and there is decent amount of them right now. charles: i have got 30 seconds, just real quick, what downtrend, you talked about the transports before. i have ity here. they have been coming down. there has been no bounce from the april lows, whatever, really breaking down. what does that say about the economy and should that make us even a little bit more cautious? >> i'm pretty darn short saying something about the economy. i think the economy is in somewhat of a downtrend, not big recession or anything but heading the wrong way. when you see rails and truckers doing that. by the way, not just transports, economically sensitive names doing it, while a lot of defensive names, recession resistant areas have better relative strength. so i thi

that could lead to a spinoff, which would be a positive fo softbank, given its large stake in arm, butto me on this deal there's two issues firstly, it changes arm's business model of license and royalty revenues, and then secondly, this means that arm could be in competition with its very own customer base, so there are some skeptics on this deal >>> speaking of arm, let's talk about competitor intel, also higher today on a report from the "wall street journal" that apollo global is in talks to finance an $11 billion intel plant in ireland intel wouldn't confirm but recall it only just two years ago, intel struck a $30 billion deal with brookfield for a minority stake in intel's fab in return for investment. intel called that brookfield investment part of their smart capital strategy with more plans to use that smart capital strategy, so apollo would fit that perfectly scott? >> all right perfection thank you. kristina partsinevelos >>> all right, mike, back to you, about two minutes, we're going to hear the sound effect in a second. this apple comeback has been pretty powerful. >> ye

. >>> let's talk chips softba softbank's arm plans to launch ai. >> i believe that ai is absolutely not a hype cycle. i think ai is going go be able to unleash capabilities and innovations we have never seen before one of the areas i'm most excited about is biosearch when you think about what it takes to simulate a drug or a protein, how difficult that is today, advance solutions going forward will enable that arm will be right at the heart of it. >> we're going to get a report on apple's gpt on the phone. >> i was reading the comment that it's being called the golden goose it's the exclusive openai and chatgpt f i can't get in the way of a man who wears a pink jacket. >> are we moving on? >> let's be careful. the chip is up against nvidia. david, i look around you're the only person who has not partnered with nvidia. how are you dealing with that? >> i do go home every night and think what are we doing wrong? family, what are we thinking >> faber has partnered with nvidia, sources say. >> i like it. >> well, we're going to design something. >> don't get more specific than that we'll ju

how much of this is that softbank owns 90% of these shares? there's barely any float.y is so little. can you say that that is the impact not that the expectations are so high? mandeep: i haven't looked at the short interest but these things matter when it comes to what the company reports and the impact on the stock price. the knee-jerk reaction. long-term, the story is intact. there are more arm designs that arm is going into data centers and edge stuff. clearly, they have that wind on their back. the valuations got ahead of themselves, and sometimes you see that sort of reaction. jonathan: arm is down, it doesn't take much to push the stock around. nvidia reporting may 22. thank you. mandeep singh a bloomberg intelligence. you nailed it, how long is this runway? how many more quarters can nvidia keep coming out saying, beat, raise, beat, raise? david: we saw the dent in the armor was vis-a-vis the guidance. if you didn't upgrade your guidance you got pummeled the next day in the market. how long can these companies maintain these rates? making a point about the physi