tencent on a tear up 3%.reports at the end of today and we will dig into that story to see if they can raise prices in the second half. and samsung investors looking ahead to their earnings as well theednesday, up 5%, semiconductor story remains strong. ,peaking of kweichow moutai earnings are due later today. consumer sector, asset portfolio manager. are you taking profits with regard to kweichow moutai? they raised their price target, is that overdoing it? >> thank you for having me. havepect them to management guidance in line with 10% revenue growth and the third quarter is usually seasonally strong where consumers make purchases for the golden week and midautumn festival. the rest of the stories unrealistic expectations built in by the street and the buy side to justify its valuation raising this year. while devaluation is not cheap, we do not think it is particularly agree just. the market giving a premium for companies able to deliver earnings with certainty, especially with the virus cases in china fl

if you looked at a two-year picture, tencent is a winner. i don't know, teddy, it feels like you are taking the other side of tencent. what about the overall chinese stock picture here? >> well, first of all, i have to admit that i have never owned any of the chinese stocks from the get-go. no particular reason, i guess it's simply a matter of you can't kiss all the girls. i have simply not been involved with them. if i were to pick some chinese names, tencent would be if not the very top, would be pretty close to the top, as would baba. but i think if you look back with all the geopolitical issues we have had with china over the years, including what's going on today, every time these stocks have gotten weak as a result of geopolitical issues, clearly they have been a buy. so i think that -- i don't know if it's today or tomorrow, but if they get weak enough and they very well could, technically, on the short term, you probably want to buy them, not sell them. liz: yeah. we have to see what the so-called retaliation by china is. apparently

challenge tencent. softbank is said to have hired goldman sachs. they are seeking about $1 billion from any sale. earlier this month, softbank said it would separate -- from its chipmaker arm because its investment requirements are limiting arms ability to grow. a billion-dollar sale would be 66% more than arm paid for in 2018. ebay is set to be near a deal to sell its classified ad unit two a norwegian online marketplace. the sale would be worth $9 billion and ebay would retain a minority stake. shares were halted monday pending an announcement. it was competing with an e-commerce investor and private equity consortium backed by blackstone. the push for a fourth economic stimulus package in the u.s., and hitting crunch time, the $2.9 trillion in initial

tencent currently owns just over 39% of sogou.suisse could be set for a big windfall when jack ma and -- goes public. this was bank invested $100 million in the simtech giants last funding round in 2018 in a deal that was not disclosed at the time. that round put value at around $115 billion. in two years, analysts say it could be worth as much as $210 billion, which would be a 40% jump on credit suisse's investments. hedge fund fees had already been shrinking well before the pandemic rips through global markets, and now, they are in seemingly terminal decline as managers go to extraordinary lengths to attract new money. be the standard for hedge fund fees but that has been changing over the years. what has really been the impact of the ? -- of the pandemic? is this something that has taken hold even pre-covid? >> it has been a downward spiral when it comes to fees for a number of years. it used to be a stable fixture for the industry decades ago when funds were smaller and return were greater. we have seen funds grow in size. fee

to 12%, tencent leading declines, posting losses in hong kong.er day of heavy license heavy losses after they failed to get their postingrenewed -- another day of heavy losses after they failed to get their license renewed. rishaad: let's look at what is going on in the u.s.. high-frequency data related to employment, restaurant bookings, motility -- mobility flattening. we have jobless claims number in the debate over the stimulus is raging in washington, d.c.. we go to public policy editor kathleen hays for more on this. we are seem as though seeing, if not a flattening, some are going so far as to say another down lag in the u.s. economy, especially states hit hard by the virus. kathleen: that is the bad news. the virus is surging. renewed more talk of lockdowns in some states. businesses are going to be clobbered again in those areas. what isame time, maybe happening with jobless claims could put urgency under congress's need to move as fast as they can on the next, new stimulus package. id what we saw today is, think, inching forward, signif

voodoo has other suitors and we are told there is no certainty tencent will reach a deal.und $2 billion. huawei has been formally banned from 5g in the u.k. as the government reverses its formal position amid u.s. pressure. operators will not be allowed to add new huawei components to networks after the end of the year, and huawei equipment must be removed by 2027. the man is expected to cost u.k. wireless operators as much as 2.5 billion dollars in additional expenses. todi: before we headed over china open, let's get a look at how asian markets are trading midweek. we are seeing optimism carry through that we had when it comes to u.s. stocks. the nikkei to do five up -- 225 up. looking for nuance when it comes waiting to outlook, hear from the boj. tokyo alert level has been raised to the highest and that could play into plans to loosen restrictions for large gatherings. the kospi is up more than 1%, sydney despitein dividend payouts expected to climb as much as 40% in 2020. in new zealand, modest upside, 7/10 of 1% despite the prime minister saying it is likely that int

tencent will reach a deal. any deal could value voodoo at about $2 billion.o twitter to question a ruling in germany. they rode the company could no longer advertise their cars as having the full potential for autonomous driving or claim that they can self navigate. that is not the case. elon musk says this is a term they picked up from the airline industry. in ond: let's check cathay pacific. the stock is heading south. this is a low that we have zines since 2001.not seen --s is over the researchers resurgence of coronavirus. this is as much as 3.3 percent on wednesday. we are poised for the lowest close since september of 2001. shares are down 41.5% year to date. we have shareholders here, approving a plan to raise 5 billion u.s. dollars. that includes the sale of preference shares. they prove that one but it was a fairly tepid affair. the market is still concerned about cathay despite these measures. there also expecting delays in the recovery of international airlines due to the latest wave of the coronavirus outbreak. that is a look at cathay pacific. th

tencent friends the divergent lives of 3 passengers aboard a cross-country train. going to 45 minutes on tour w. . are they friends she wanted to be with you if you try to steer the board which it was living a full of the time of the bush and his new mission or are they and i mean he's going to finish the feasts you will feel pushed you would go in a business you should look at he's going to go give a shit my dad or the rajah donald trump flooding or i were 2 part documentary analyzes the difficult relationship between russia and the us and between the presidents how does their rivalry and their dangerous mutual admiration affect the rest of the world. to some bullies trump and putin starts august 3rd on d w 5. the coronavirus pandemic is not only a threat to our health for many it's a threat to their livelihoods and it doesn't matter whether you live in europe in the united states africa or asia people all over the world are having to adjust to a different job market different wedding alice different works in arias.

tencent adding 5%. alibaba is the one to watch, surging 5%. ant financial -- look at where we are in terms of the southeast asian markets. china up by 0.5%. sti up 0.7%. theaad: we also have european union leaders running a policy marathon as there planned two day meeting to pass a massive recovery fund. in the u.s., republicans and democrats are starting to hammer out a budget plan this week. our policy editor kathleen hays is with us. in both cases, agreeing on a we are getting some murmurs of an agreement. we certainly are, and we know two day meetings turn into four day meetings. insults are being hurled back and forth. emmanuel macron pounding the table. there is a compromise they are considering. it is mainly due to the fact that led by the netherlands are insisting on changes. of 390 billion euros of grants. before they said it has to be way less than 350 billion. originally the majority wanted 500 billion. they made some progress. 360 billion of low interest loans. on monday, the chancellor of germany sees progress, and sees the framew

alibaba and tencent are making of this.41% that could foreshadow how on contact indexes will perform.ks have far outperformed the hans saying. the new tech index would have delivered more return. they are set to benefit from the beneficial etf and derivative trading. let's not forget that there is this rising shanghai star market. what is the potential threat to hong kong from that? techat offers china companies a chance to list at home. it is proving to be very popular. as we saw last week with the new smic. we do have more high-profile listings in the pipeline. the last listing will make it more attractive. it drew 130 tech firms of the last 12 months. -- mostia's morris valuable stock. if you look at what is effective of the stone board, it might not be strong enough. they are holding stocks and may transfer them to mainland shares. we will be speaking exclusively to the ceo of the hang seng index about the hong kong tech index. the federal reserve goes into this week's meeting with an economy that appears to need more help to fight the coronavirus. the central bank is already push

>> tencent is an investor. that doesn't change my opinion on anything.ess involved in these decisions. if tiktok were found be doing something wrong, they should be punished for that. i don't think it's right to assume that consumers should be denied access to this over the fear of something wrong happening. you need a higher standard than that. you need to process. -- due process. if we were making arbitrary decisions to throw up confident are, you are no better than china with its own form of protectionism. china denies facebook access to china. you deny google. you allow a few things. we've been asking for permission to release fortnite in china for three years. we've been denied. we should be pushing for a level playing field between companies that countries. we should not be reverting to, china doesn't, so we should do it too. haidi: tim sweeney there. before we hand over to bloomberg markets china open, is a quick check of how markets are trading at the moment. ,he neck a at a two-week low falling 6/10 of 1%. industrials and materials leaving the d

tracking the 30 largest tech companies listed in the city, including chinese giants tencent and alibabad have returned 47% are investors versus a loss of 12% for the hang seng. chinese listing in the pipeline. goldman sachs 3.9 billion dollar agreement with malaysia over the 1mdb scandal could pave the way for a settlement with the u.s. justice department. the malaysian deal announced late friday includes a payment billionillion -- $2.5 to resolve probes and guarantees an additional 1.4 billion dollars will be repatriated to malaysia for assets seized around the world. hsbc is denying it framed huawei, saying it didn't spot the u.s. probe into the tech giant. they made the statement in response to allegations from huawei, which claims the u.s. mid -- misled canadian authorities on a presentation given by a jailed ceo. hsbc says it has no hostility towards huawei and did not ensnare the company in the probe. the managing director of a bank reduced his holding to the lender, selling 7.4 million shares for $113 million. overgs show he sold shares three days last week, cutting his holdings

xiaomi tencent up by 1%, up by 2%, alibaba up 7.5%.ery strong performance for tech players in hong kong. highe: we saw the record for the u.s. shares for alibaba overnight, as well. let's focus on big tech. scholars and journalists are trying to identify the new red lines in freedom of expression on social media. the hong kong government introduced new police powers to monitor the internet. if a publisher fails to comply with requests to remove content, police can seek a warrant to take action to remove it. our next asked lectures at the university of hong kong in media law. next for joining us -- thanks for joining us. tell us how wide reaching these laws are when it comes to policing content. do you think hong kong will fall inside the great firewall? >> good morning. techey concern i think companies might have no in hong kong is that it is clear hong kong is moving so rapidly towards the mainland style firewall around content. the distinction in hong kong, it is a firewall with teeth. this is not simply blocking information, this is

it is backed by tencent. we were talking about automation because they see this growing demand.od delivery orders increasing three to four times over the next five years. the challenges how to ensure they can continue to do that. small robotic vehicles they are testing out in the northern suburbs of beijing. he thinks that will happen in the next 3-5 years. he addressed the concerns about data security. in the u.s., deep concerns about china's artificial intelligence ambitions. he hopes that in the future, the u.s. and china can continue to cooperate. he said that silicon valley is still the beating heart of innovation. he thinks the u.s. is misunderstanding. company liked a trendo accelerate their toward online delivery and technology. what was the actual impact? in the recovery and return to normal in china? alreadysaid the trends at play have been accelerated as a result of the pandemic. more people ordering in any does not think that will shift anytime soon. even as people start to return to work in the virus is less forceful here in mainland china. they did see a big drop o

and chinese tech companies including tencent, alibaba, and neil.impact of geopolitical tensions and the concerns facing china's big companies. i will describe it as moderately is increasingly concerned. i say that because under their guidance, we have been very much seeing, this is something that has been in trade for approximately two years now. been,in consequence has we no longer spend a lot of time thinking about when the giants eventually clash. plainly, we divided the world up now. we used to think through, where would amazon go against alibaba? what would be the consequences? now, it's a more limited framework. these companies are even stronger in their domestic environment. add, i talked about this before. i think we should be just as worried about the consequences for the west, particularly for america, as those within china. what we will see is the chinese companies are already thinking of domestic markets as their with all of the ironies around the future of hong kong. that may very well hold. worry that without the challenge of china, w

you can start rewarding investors as well again, it's noticed -- noted you made the dividend cut to tencentay could go to zero. do you agree with that? is that something you may have to look at if that v-shaped recovery is even pushed out further into the future? earnings long-term , and some recent requirements that were put in by the fed that govern how the banks, no more than the trailing four quarters average of profitability. between these allowance bills, we had a big legal settlement a couple of quarters ago. our trailing four quarters of profitability is relatively low. so we have struck a dividend proposal that is beneath that so there is little risk of it going down from there. the economy could's ego orszag in a way where -- could zig or zag. the dividend approach really doesn't assume, as we do today, that we have ample capital. so it really isn't as much of a capital issue as it is an earnings issue. we close quarter with an increase capital level in percentage terms, the streaming capital ratio for big banks. that'suirement is 9%, about 23 billion dollars worth of extra capita

just like jack says alibaba and tencent in china and jobs for entrepreneurs and the economy, google, facebook, amazon, the three western engines, with tencent, alibaba and facebook generating marketing cheaply, flexibly with lockdown google has become more effective from a performance point of view. television also has become more effective in terms of cost because of that lack of flexibility and absolute cost of tv, it has been less prominent when you say the budgets have fallen, that is true less so with tech crimes about half of our client base, more with cpg and autos no the so much with health care but certainly offline retail but at the same time there has been a switch to digital because it's cheaper and more effective. >> sir martin sorrell, good to see you. thanks for joining us. >> thank you sara, good to see you again. >>> still ahead the coronavirus pandemic rocked retail industry sending many names into bankruptcy and derailing rhythms investors and executives rely on we'll discuss that with co-ceo walter robb in the show. a check on bonds with you. -year-old is higher b

the breakout in both of them this year, tencent broke out early in the year.e-year chart looks fantastic but enough about the charts you had had a dynamic withquidi driver the valuation is attractive relative to mega cap tech and where you can have market dominance on e commerce and cloud. some of the same in amazon not too late to get into both of those plays. alibaba is a better valuation. >> thanks, guys. thanks, flip, for being part of the show. >> guy, dan, tim, fast money traders. continue to send the questions because we're back in the same slot tomorrow. yeah, another supersized show. don't go anywhere, by the way. stay tuned because "shark tank" is up next we're going through a really tough time right now, all around the world. and covid-19 is still impacting so many people. if you've survived it, then you're the heroes we need. the plasma that's in your blood can literally save lives. but we have to act fast. so please donate. you fought for your life. now, let's work together to take down covid-19 to donate plasma go to thefightisinus.org in a highl

we simply come in and break up, that these american companies could be replaced by the alibaba, tencents, large chinese tech companies. if we don't put rules of the road in place, i would not take the antitrust actions off the table. my fear has been these tech giants are been able to stop whether it's privacy, whether it's having consumers know the value of their data, having this data portability, certain commonsense rules. we've not been able to pass legislation that says if you are going to put a political ad on to facebook or google, you should have the same disclosure requirements as you have on cnbc that seems like a no-brainer >> senator, thank you. >> thank you >>> coming up, an interview with brian niccol chipotle's stock down a little today but up 35% this year can the company keep it up >>> and a world of hurt, that's how one casino executive describes las vegas. we'll check in on the sector. >>> and one hotel offering free rapid covid tests to lure customers. would you check in that's ahead in rapid fire we're back in two. save hundreds on your wireless bill without even lea

they have a $1.5 billion deal with china's streaming platform, tencent.heir fan base there is huge. 500 million chinese fans tuned into at least one nba game last season. that gives the chinese government that owns the airwaves in the country a lot of power how many eyes tune into the nba games there n october after the houston rockets executive tweeted support for the hong kong protesters, the nba live games went dark. they are taken off the air. it also provoked a number of chinese businesses to temporarily ban selling apparel from the houston rockets. the nba commissioner adam silver said the the stand i don't have had a on the league's bottom line. only 10% of their revenue comes in from china, but it is expected to double by 2030, bringing in about 20% of the nba's revenue. lou? lou: hillary, very quickly, where are we then with the slogan fans can have on their backs of nba jerseys? they can have slogans about free hong kong? they can still have all of that anti-cop, anti-trump nonsense on their backs? reporter: so the free hong kong slogan has been

tencent has done really well. china. that is easy play. 3.25% yield. got to love that as well.harles: ryan, good stuff. talk to you again real soon. >> sounds good, thanks, charles. charles: all right, folks, coming up i'm diving in on big cities how they have failed black and hispanic-americans for a long time on all levels. education, jobs, housing. this is what happens when new york healthcare.gov new york governor andrew cuomo combs up with posters. this is head-scratching art. i can't wait to talk about it next mornings were made for better things than rheumatoid arthritis. when considering another treatment, ask about xeljanz a pill for adults with moderate to severe rheumatoid arthritis when methotrexate has not helped enough. xeljanz can reduce pain, swelling, and further joint damage, even without methotrexate. xeljanz can lower your ability to fight infections. before and during treatment, your doctor should check for infections like tb and do blood tests. tell your doctor if you've had hepatitis b or c, have flu-like symptoms, or are prone to infections. serious, som

tencent performing strongly, reaching $510 per share earlier.- upin japan is 0.7% and the nifty futures up 0.8%. the futures in the u.s. turned around, up more than zero point 1%. the stronger ism data towards the end of play yesterday, and the payrolls we are looking ahead to as well as job claims later today. in terms of the currencies, the dollar index is flat essentially. it has been weakening over the last few days. gold and silver, down 0.4% and in terms of oil, that is flat at $42 per barrel. there is a concern about the lack of demand given the virus infection rates in the u.s. 10 year yield is at 0.68. former u.s. national security advisor john bolton says president trump's response to the allegation that russia offered bounties for killing american troops makes the u.s. vulnerable, whether it is true or not. bolton declined to say whether he personally briefed the president on the matter before he left the administration. >> what i said to the associated press on the question was asked was, no comment. that is the same thing i will say

so far, we have been seeing, for instance, the cloud business together with tencent, portion of 1% ofket. whether that could whatming a decline for they have been doing, or the numbers from alibaba. we need to wait and see, but we do have a phase already from financial services. tom: breaking down the listings for us. that was our bloomberg intelligence senior asia financial analysts. you can catch up with our interviews by using our interactive function, tv . you can watch live in dive into any securities or bloomberg functions we talk about. send us instant messages, should you wish to do so during the show. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ rishaad: let's have a look at the business flash headlines. this company is looking erased ripley and dollars. bloomberg -- looking to raise $3 billion. comparing the offering that could happen as early as this year. lufax exclude this and geopolitical tensions between u.s. and hong kong could affect the decision. hynix comes out with second-quarter numbers. the highest estimated operating

if fun at goldman is boosting bets in asia with holdings in tencent, alabama and others making 20% of. to apple'ss turn main chip maker. it raises outlook for 2020 revenue, counting on global 5g smartphones and continuing demand, despite growing signs of another wave of coronavirus infections. joining us now from hong kong is the clsa regional head of technology research, sebastian hou. ,he improved outlook for tsmc is it really a reflection of the forvery in the end markets semiconductor makers, or is it more that inventory may be low? is atian: i think it things.ion of two first, there is some recovery on markets. strugglingeconomies to reopen. people coming out to consume again. recoverseen consumption in the last two months. another reason is that i think it is more structural, because the world's economy needed to be more digitalized during covid-19. more people work from home, so that has driven a new wave of ,emand for example for pcs servers, networking. people need to upgrade to by anyone. something that the other sectors don't have the privilege to enjoy. that kind of streng

is it just a matter of time before we get negative yields for tencent 30's as well?d 30's as well -- tens and 30's as well? selena: it looks like we will get a push in that direction. as long as the said modes onto the gains, cutting rates into the negative territory, this is predicated on the u.s. economy stabilizing in the second half despite some of the second wave concerns. we can probably avoid this for the next one to three months. they have a lot of liquidity. that is what is really holding down that. if you look at the data, it does suggest probably the worst is over. the shape of the recovery, it may not be -- nevertheless, i think it will take much more sincere, you know, second wave, for instance, to push us back to the -- the pandemic is still spreading. it does seem like, i don't know, investors could be looking for shelter still. selena: actually, the fundamental picture has not changed that much. macro recovery story is fueling the risk on sentiment. that has been offset by the ongoing virus spread in the u.s.. at the moment, we think the dollar will h

upving it, though, tencent 50% in that timeframe. tech tronic industries, and 93% -- a 93% gain. is a pain program. -- the following is a paid program. >> the following is a paid presentation front to you by rare collectibles tv. >> guidance is internal. big mission sequence start. 3, 2, 1, zero. we have a lift off.

and the global pandemic an increase in online digital shopping, looking at companies like tencent, alibabareflect the success we've seen in the large-cap u.s. stocks in that space. i would think e-commerce has real room to grow in china. >> the offshore yuan at the moment holding a hair below that afterlevel at 699, this the third week of gains for the offshore yuan. where you see the direction of the renminbi going, especially when we have a structural weakness for the dollar? again, i think there's probably range around volatility coming our way. what is interesting about this, i have been following this story, is the bond has not been considered a stored value currency that enticed -- the yuan has not been considered a stored value currency that entices people to get into chinese assets. i think it is going that way, with msci global indices, and shares, there opportunities that will support the currency in the long term as well. >> the earnings beat continues in asia this week. what are you looking at a particular as to the earnings that will give you a macro direction as to the state

tencent expects daily food orders to grow over the next five years.delivery system, taking 30 million orders every day. in an exclusive interview, their chief scientist told us that the company is counting on ai and robots to help cope with the surge in business. working on some new things. for example, we are working on autonomous delivery. moreat we can help much delivery force to deliver more orders to the consumer. , self driving vehicle can deliver food. we're using recent technology to get more information. we're using augmented reality. and we take a picture use our recognition system to know which store this is. what that can see what is thet and best services and dishes of the store. >> what proportion of the delivery side of business would you expect to be fully automated , and in what kind of timeframe? gethis will be gradually into our business. economist delivery still -- onomous mess -- aut delivery still has challenges. we are testing in beijing. we have a few vehicles running regularly. have opinion, we should really mature technology

they also have a $1.5 billion deal with china's streaming platform tencent and their fan base there islion chinese fans tuned in to at least one nba game last season so this billion dollar behemoth of a company and their ties to china could be under scrutiny here in congress if senator josh hawley has his way. neil? neil: all right. hillary, thank you very very much. we misidentified the party affiliation of senator hawley. he is of course a republican, not a democrat. i do want to get the read on all of this with dr. patrick, who runs a company and interestingly for this segment, is also a los angeles lakers minority owner. good to have you back. so much to talk about. your thoughts on this move where, you know, free hong kong, the lettering like that on shirts, nba equipment, fine by you? >> well, you know, look, i think we should fight for democracy and freedom wherever we are. i think as a nation we should lead and with regard to the nba, obviously, this is something that adam and the owners need to actually discuss. it's hard for me to comment just having heard this literally on y

alibaba, baidu, tencent, and others want to elbow into the data club in europe.bouthould think twice his mental and u.s. firms that invest heavily in artificial intelligence and can compete worldwide. your thoughts on whether or not more regulation is needed of these big tech companies? yesterday, president trump sent out a tweet on this issue saying that if congress doesn't bring fairness to big tech, which they should've done years ago, i will do it myself with executive orders. washington has been all talk and no action for years. the people of our country are sick and tired of it. president's on the tweet, trump moves to hold social media companies liable if they alter or editorialize user's speech. from the article, they say the commerce department made it clear that social media companies can be held viable if they do that. the petition requested that the ftc clarify the cure ration measures. -- curation measures. they say president trouble continue to fight against censorship of americans online. republicans, jim jordan of ohio, questioned a group of ceos

category yet because these are all global companies and, frankly, to have them replaced by alibaba, tencent, chinese companies may not be the better alternative. what i would rather start with, using breakup as a reserve option, what can we do to add more competition i was a telecom guy. there used to be a great deal of concentration in telecom until, one, the government action in terms of breaking up at&t. two, the whole idea of number portability. in fact, in the '90s it used to be hard to move from one telco or another, you should easily move your data from another platform and still have it interoperable and have it used with your friends who remain on facebook i think there ought to be more transparency you ought to know what it's worth on a monthly or quarterly basis so we get rid of this mishome in mmi misnomer that these are free they take your data and monetize it and we ought to know as consumers how much that data is worth. i think we ought to recognize that there are a series of practices, deceptive practices, frankly, using dark patterns and other technology tools, that these c

the intermediate term impact the companies very much i like alibaba i like netease, j.d..com and tencent what about taiwan semiconductor, some of the strong growth they had what do you think of the chip stocks >> if you're a self-respecting portfolio manager or tech the right move is to over weight or under weight the semiconductors versus the rest of tech. i have been on the sideline with some of the semiconductor names, but if we get a little bit of momentum, particularly with the economy because these are cyclical names, that the semiconductor should do very well in my portfolio i own advance micro devices, i own some nvidia i'm waiting to buy some of the semiconductor capital equipment companies but i don't own taiwan simeon and what they say is a pretty good sign >> pretty good sign not just for the chips but beyond that for broader technology >> yeah, because you think about it as the world's largest semiconductor manufacturer they have their hooks everywhere all around the world in semiconductors of course, semiconductors are quite pervasive. they go in all kind of gadgets taiwan