what to tsmc's latest numbers tell us? saw yesterday only underscore the importance of tsmc in the global supply chain. they expect revenue this year to rise more than 20%. that phrase more than is doing a lot of heavy lifting. that is the key difference between their comments three months ago when the expected revenue this year to rise a flat 20%. from the outside that looks like things have become a bit more bullish for them. tsmc, this just indicates how important it has become at the edge of the semiconductor industry. there is a global shortage of semiconductors for everything from the cutting edge chips that go into smartphones to the slightly older technologies that you will find in cars. tsmc is trying to appease everybody and supply all of its customers. it is traditionally a picky company in who it agrees to work with. these numbers to indicate -- do indicate that they are being bullish. another key thing they said yesterday is that this global shortage will continue into next year. that does echo what they had p

rishaad: tsmc talking about a plan. a fabrication in germany.at at the moment. shares down a fraction. about 0.2%. yvonne: watching these stocks carefully. on the back of what we heard from intel last week. talking about a chip shortage. we are watching in southeast asia, the filipino president calling for act -- pandemic recovery measures. indonesia extending virus restrictions for another week as covid-19 cases continue to rise there. and vietnam says it is looking to lock up deals for as many as 170 million covid vaccine doses by the end of the year. rishaad: we just got the philippines president making his speech. including on his latest tax agenda. on top of that, looking at the malaysian market as well. there we go. down by about 0.4%. and jakarta came on about a half an hour ago. moving to the upside. vietnam considering a new aid package and a huge amount so -- of support for virus hit companies. in malaysia is the next story. yvonne: the prime minister is set to be grilled later on monday about his pandemic response as the parliament si

led by these tech stocks by the likes of tsmc.onductors catching a huge bid and kospi with the same kind of effect. futures are still flat. we still have inflation numbers coming up in the u.s. later this week. india seems to be in the green as well. rishaad: exactly one hour away peter j.p. morgan chase will be taking center stage as it kicks off the latest pareto financial earnings for american banks. jp morgan and rivals have been earning the pandemic related surge in trading revenue is slowing down. yvonne: let's get to su keenan joining us with more. we have seen the warnings from the banks and we saw the stocks react to that as well. su: they have been retreating over the past week. we saw j.p. morgan chase up 2% on the day, along with the rest of the banking sector which rose with stocks to the record. take a look at j.p. morgan chase year to date. it is up 24% year to date. that actually trails many of its rivals in terms of performance. it was down from its peak in june. that is when jamie dimon put out a warning to inves

tsmc right now sells for about ten times sales. smick is in china, they're about seven times sales. some context, umc's net margin is about 15% and it's probably pretty peakish. global foundry is losing money and they would be spending twice as much. as far as what else they should buy, i don't know. if the goal is to get into foundry, is that is the strategy, there's not a whole lot else out there glofo makes sense, and they're headquartered here in the u.s., versus the other ones which are taiwanese and chinese and coreen if that's the goal to try to build a business and get some of the expertise, glofo is kind of it, but maybe that's why they have to pay up if they're serious about buying it. >> i'm looking at this and wondering what is pat gelsinger sitting in his office most worried about and why is he looking at eyeing this company if you're him, sitting in the office, why? >> i don't think it's -- glofo is a piece of a broader strategy the question is why is he looking to get whole hearted into the foundry industry. there d could be a few reasons their own core business is un

tsmc's founder has warned that cost could go up and still fail to achieve self-sufficiency.ystem to fulfill global demand. facebook is pushing back against accusations that it is responsible for a vaccine misinformation. u.s. president joe biden said on friday that social media networks are killing people by allowing the spread of misinformation about coronavirus jobs. facebook says the claims were not supported by the facts and it is not to blame for the u.s. governments missed vaccination targets. that is the bloomberg business flash. anna: opec-plus has agreed to boost production into 2022 sending crude prices lower. the group will add 400,000 barrels per day into august. this overcomes an internal split perhaps threatening the cartels control of the crude market. barrage patel is still with us -- virag patel is still with us. is this the highest we will see oil prices this year? viraj: i think we have seen the highest for the next couple of months so for us, we think opec is unlikely to put a -- on oil prices in the short term. if you add that to the growth scare and the

samsung is one of the world's largest computer chipmakers, alongside intel and taiwan's tsmc.rnment wanted the decision over whether greensill capital could take part in an emergency lending scheme to be prioritised, a watchdog said. the department for business showed an unusual level of interest in the finance firm's accreditation, according to the national audit office. the government said there was no suggestion ministers or officials made efforts to influence the decision. two of the world's biggest airlines will trial fast—track lanes at heathrow airport for fully—vaccinated arrivals. under the scheme passengers from some countries will be able to upload their vaccination status before boarding. the trial by british airways and virgin atlantic comes as the aviation industry calls for quarantine—free travel to the uk from lower—risk amber list countries. germany is lifting the coronavirus travel ban on people from the uk and four other variant—hit countries from today. the restrictions also applied to people from portugal, russia, india and nepal. visitors who are fully va

samsung, tsmc, there are companies that are in allied countries and we certainly want them operatingica and producing chips in this country, yes. >> there are other supply chain issues as well. you are monitoring what is going on. where have you seen other problems in the supply chain in the u.s. that needs to be addressed? >> lumber, all the related supplies, glue, adhesives, and you see it playing out. home prices are high. if you go to home depot or lowe's you see prices a little bit high. that is all because the lack of supply, just disruption in the building supply supply chain, mostly due to covid. we are working through that. the president convened a supply chain disruption task force and we are working feverishly every day. you are seeing improvements, and we will continue to see improvements in supply chains as we put the pandemic in our rearview mirror. >> the overall mission of the commerce department is to create conditions that promote economic growth and opportunity. let's talk about the labor force. how challenged are we in the labor force? we hear anecdotally that the

it would be great to have tsmc in the u.s. sure they're a competitor, but i feel confident our companies can compete. >> they're obviously strongly contemplating that, as you know. >> contemplate and location are not the same. how can we make it easier for them to get here? same for samsung. very strong presence in texas. we depend on samsung and tsmc. do we feel comfortable with that dependancy? mixed answers there. we may not have a choice in some cases, so how do we smooth the path to work with them? we need to think about our european allies. they're a little more ambivalent when it comes to cutting off trade with china. >> that's changing, i think. the more the chinese communist party opens its mouth, the more our european allies are realizing the reality. >> you're absolutely right about south korea and taiwan in terms of prediction. they represent 100% of the manufacturing capacity below the ten nanometer note. one is encourage their investments here on shore, which they do have plans to do. the signaling that the chips

the apple story from yesterday, tsmc, one of the big suppliers into apple, apple going for a 20% boosthones. t-live for everybody there, viewers can pick it up. the way to revenue on the actual chips, 18% of sales on the most advanced chips. just keep that in mind. margin pressure but of course a huge boost. what have we got on the banks? dani: we just heard from brian moynihan. wells fargo's cfo has been speaking to bloomberg. he more or less has been breaking down the bank's second-quarter earnings. >> you think about loans. it is a little bit of the same story as we have been seeing. in our commercial banking business, we are continuing to see those decline. clients have a lot of liquidity, there are supply chain issues, huge demand. they are not able to build inventory. we have not quite seen the inflection point. i think people are hopeful that at some point over the coming quarters, we will. manus: let's bring in our financial reporter. we caught up a little bit earlier, the very symptom of the matter -- very simple fact of the matter is, i don't need to borrow, i are saving -- i

samsung, tsmc. are companies that are in allied countries and you know, we certainly want them operating in america and producing chips in this country, yes. >> we have a significant chip issue but there are other supply chain issues as well. i know you are monitoring what is going on. where have you seen other problems in the supply chain that need to be addressed? gina: particularly in home building supplies. you know, lumber and all the related supplies. lou, adhesives. you see it playing out. home prices are higher. if you go to home depot or lowe's, you will see they are priced a little bit high and that is all because of the lack of supply, just disruption in the building supply chain mostly due to covid. we are working through that. the president convened a supply chain disruptions task force which i am on and we are working it feverishly every day and fortunately, you are seeing improvements and i think we will continue to see improvements in supply chains as we put the pandemic in our rearv

see s&p -- tsmc gross margins missed estimates. david: let's look at markets.theast asia -- in a couple of minutes, we will talk more about the virus situation. in vietnam, the numbers are surging, as you can see from what is happening on your screen. the market has already fallen quite a bit. we're looking at the first couple of minutes in vietnam, the ho chi minh index. we can talk about malaysia and indonesia, which just opened as well. so far, we are not really getting that sort of inelastic reaction you would get six or 12 months ago. we are up by 35%. that is about an 8% or 9% drop from the peak. also coming up anytime now, the next couple of minutes, is the bank of japan. rate decision, we are not expecting a lot to change. they are well short of their inflation target. that is one place where inflation is not an issue. we are headed to the lunch break in tokyo. we are starting our blogs to give you some context come up with numbers and analysis from bloomberg expert editors. keep it here. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustr

tsmc expects sales to rise more than 20% this year. coming up, the blank check boom is not over. we hear from coastal ventures founder whose is sponsoring multiple spacs. ♪ emily: the ipo market has never been hotter and while spacs have cooled off, the blank check boom is not over. a warehouse automation company plans to list on the nasdaq later this month. coastal ventures was an early investor in the robotics company. the founder joins us now. great to have you back on the show. you have sponsored multiple spacs. given the many years you were a founder of micros systems and you have been an investor for some time, what is the opportunity you see that is new? >> spacs for another opportunity like an ipo or private equity funding. it is just a different vessel. if you look at the biotech industry, they have been able to do ipo's 5, 10 years before revenue. they need to project into the future, explain their future. ipo's have been available to them. many more areas of technology that fit the same model. for them, specs may be a great -- spacs may be a great opportunity. berkshir

i wonder how that is adding to your optimism about the foundry business and taking on tsmc.: it certainly is a factor because right now, what have you got? can you run more wafers for me? there's a clear search for supply in the industry which is a bit of a tailwind. there's also very few companies that can do leading-edge technologies, so they are looking at us quite aggressively that way. also, this rapid buildup of new capacity, it takes time, and building a new fab from scratch is a three to four your exercise to have it built. so all of that view of a cycle of significant demand, and as i have said, i think we are in for a decade of good semiconductor industry characteristics because every aspect of human existence is going digital. everything digital meets semiconductors. as you look underneath that, this is going to be a good cycle for semiconductors, our foundry interests, and we now have over 100 customer engagements that are active today. we are seeing a lot of interest in our capabilities because with leading-edge kick abilities, it is best leading-edge capabiliti

everyone recognizes that that is a problem right now and tsmc and other big ones in asia are startingild factories in other places. intel is uniquely positioned as an american company and as the largest semiconductor player around. does that mean they have to have a global foundry? i don't think they do. they will look at what they can do organically and they may look at smaller acquisitions over time but it will be interesting to watch that. shery: that's turn to to -- let's turn to twitter. we know that they had easy comparisons for the second quarter but the third quarter seems to be pretty strong. bob: it was. it was interesting because one of the big questions for twitter and snap news as people start to get out of their pandemic constrictions, which fortunately, we have had some degree of success here in the u.s. on that front, there's been a question of how is that going to change the viewing habits and social media consumption habits of everyone? but clearly, it seems that twitter is doing relatively well. the lack of our previous president being on the platform will lead a lo

but we depend on samsung and tsmc.issue for the congress and for the administration is do we feel comfortable with that dependency? mixed answers there. um, i -- we may not have a choice, in some cases. so, how do we smooth the path to work with them? also, you were in asia but we need to think about our european allies. they are a little more ambivalent when it comes to cutting off trade with china. >> but that's changing, i get the sense. and the more the chinese-communist party opens its mouth, the more, i think, our european allies are recognizing what the reality is. >> let's -- let's look at the results of the elections in france and germany because i think when those are over, it might be easier to see new directions in european policy. >> dr. gill? >> to borrow the microphone. um, you are absolutely right, senator, about the strength of -- in south korea and of taiwan in terms of production. i refer, in my testimony, that they represent 100% of the manufacturing capacity, below the 10 nanometer node. so i think

the company may be building a chipmaking plant in germany in addition to the one tsmc may build in japane been cranking up production. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm laura wright. this is bloomberg. >> we will continue to have attractive fares for customers this summer. when we get into the fourth quarter and more likely into the first quarter of next year, summer of 2022, i think you will see a rebound. jonathan: the ryanair cfo. that stuck up by more than 4% in european trading. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. counting you down to the opening bell, we shape up as follows. one hour and about 42 minutes out, equity futures down seven. we are down 1.6% on the s&p 500. yields off the lows of the morning as well, still down by three basis points on tens, 1.2455%. positive 0.2% on that currency pair. tom: i'm going to call that a gloomy range. right now it is certain that there will be a question on a co

i wonder how much that is adding to your optimism about the foundry business and taking on tsmc.y is a factor, emily. right now, everybody, you know, boy, what do you got? can you run more wafers for me? there is a search for supply in the industry which is a bit of a tailwind and there is also very few companies that can do leading-edge technologies so they are looking at us quite aggressively that way. this rapid buildup of new capacity, it takes time. and building a new fab from scratch is a three year to four year exercise to have it else so all of that view of a cycle of significant demand, as i said, i think we are in for a decade of good characteristics because every aspect of human existence is going digital. everything digital needs semiconductors. if you look underneath that, that will be a good cycle for semiconductors. shery: that is pat gelsinger striking a positive tone when it comes to the global semiconductor shortage but of course we will be watching japanese chipmakers once they start trading. we have seen those lead times for chips. the gap between ordering and

so names like tsmc, skyworks and broad come bernstein says this is good news for apple.ificant customer and probably representing mid teens percentage of total revenues, if not more qualcomm another important supplier to watch. i spoke to another analyst who covers that name, too. he says this should be seen as a positive for qualcomm investors. qualcomm probably gets $38 for each iphone sold combination of chip sets and licensing. this year's iphone update will be more incremental than last year's iphone 12, according to the same report, emphasizing processer, camera and display improvements in my eight years covering apple, to be honest, i have lost track of just how many times we have heard this same thing incremental, evoluevolutionary, revolutionary. it's not sure how that correlates with actual sales the end of the day consumers still buy a lot of iphones. we'll see what happens this year back to you all. >> josh lipton, so true. thank you. >>> going further on apple, we're going to turn back to its reported plans, perhaps to increase its footprint in payments test

coming from tsmc this morning.'s get a bloomberg business flash. >> netflix is planning to offer video games on its platform within the next year. a former facebook executive has been hired to lead the effort. they would appear alongside current netflix content. for now users will not be charged extra. daimler's preliminary earnings beat stments on its mercedes-benz cars. earnings surged to 5.19 billion euros. beating estimates of 3.91 billion. the highest u.s. inflation in recent memory. the world's largest asset manager will increase salaries at director level and below by 8% starting in november at blackrock. that's the bloomberg business flash. mark, anna. anna: thank you very much. laura wright in london. political fallout is beginning. poland wants its e.u. partners to pay the bill. france is resisting the drive to electric vehicles. the plan would see it grow by 55% in the next decade. total carbon neutrality by 2050. that didn't take long to go to political reality. we have heard from the e.u. there is no t

tsmc will spend up to $125 million, apple daily is reporting that the vaccine will arrive in septembere pressure to obtain the vaccine. shifting gears, let's bring in our markets coanchor, david ingles for a preview of the trading day in asia. that euro game, i hate when they are decided on penalty kicks. david: i would be hard-pressed to make a direct comparison to the markets. kicking off the trading session here, we put together some data. have a look at sterling. look at data all the way back to the 80's. your data is kinda mixed in with this. your futures are starting to trade right now. we are coming under tremendous pressure there on that contract. >> i wondering if some of these regulatory issues should be decided with a penalty shootout. what are we reacting to? is this the triple i, the floodgate? david: hopefully it is the latter. you're starting to get it already. look at copper prices this morning, a little higher than thursday. there are a ton of things to watch. >> that is it for daybreak asia. markets coverage with dividend less comes up next. this is bloomberg. ♪ (anno

the csm see founder -- the tsmc founder has warned costs could fail to achieve self-sufficiency.bout the failure to create a self-sufficient semi conductor industry. the australian government and telstra has teamed up with a 2 billion-dollar aussie bid for dg cell. local media reports the government would step up three quarters of the money. the deal is seen as a way of keeping telco assets in the pacific out of china. rishaad: london mayor sadiq khan mayor -- london mayor sadiq khan joining bloomberg. celebrating so-called freedom day. covid surging and serious doubts do remain. from listing curbs to lift off. the space race coverage on tuesday as jeff bezos launches into orbit on his blue origin rocket from 8:30 p.m. hong kong time. a quick look at the markets. going to lunch break in hong kong with the tech and banks at the fore. we are off the lows of the day. the nikkei is under pressure after lunch. it remains that way. u.s. futures also on the way down. concerns about the impact of covid outbreaks. elevated inflation and what that may do to elevated prospects. 1.2% down fo

we have a bright spark from tsmc saying they are doing due diligence for a chip center in japan, so we that as for what the future of his country could be after these olympics settle down. shery: sophie jackman, our tokyo deputy bureau chief. singapore's health minister is the latest to warn that more infections will be expected in the couple of days. let's get the latest. what do we know? reporter: suffer singapore, they reported hundred 63 cases in one day. that's a really high level compared to the past. it is concerning because they are in a region reporting a lot of cases and they are insulated this moment at -- because of their high vaccine rate. so we will see how effective the vaccine is at fending off the delta variance. the government has said they will take action f the situation continues. we will continue to look at that. haidi: what's the vaccination rule out like yucca -- vaccination rule out like? reporter: it was faster than financial hubs like chaim kong -- like hong kong. it is actually an advantage when you only consider the vaccine rate. the problem right now is re

haidi: tsmc's founder has warned domestic supply chains could push up costs.aking as taiwan's envoy to the forum, he raised doubts about the ability of government to develop semiconductor industries. he said free trade has boosted chip technology and remains the best system. a bank makes -- posts more than expected profit. india's largest private sector lender saw a net income of about $1 billion, it's the first lender to report results as the nation emerges from the coronavirus wave. much more to come on daybreak asia. this is bloo in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. reporter: these are the first word headlines. boris johnson has agreed to self-

years paid i wonder how much that is adding to your optimism about the foundry business and taking on tsmct: it certainly is a factor, emily. right now, everybody, you know, boy, what have you got? can you run more wafers for me? there is a clear search for supply of the industry which is a bit of a tailwind and there's very few companies that can do leading-edge technologies. they are looking at us quite aggressively that way. also, this rapid buildup of new capacity, it takes time. and building a new one from scratch is a three-year to four-year actual size to have it built -- exercise to have it built. that cycle of significant demand, and as i said, i think we are in for a decade of good semiconductor industry characteristics, because every aspect of human existence is going digital. everything digital needs semiconductors. as you look underneath that, this will be a good cycle for semiconductors. shery: pat gelsinger there. we will have plenty more to calm on "daybreak asia -- two, on -- to come on "daybreak asia." this is bloomberg. ♪ [ "me and you" by barry louis polisar ] ♪ me and

global foundries and tsmc have spoken positively very recently about starting to be able to meet somese have seen from the automakers that has not been met that has resulted in far fewer sales of new automobiles. >> it is interesting that even on the reports the market bids up intel by a percent, not necessarily spooked by the idea that they may spend $100 billion intel spends 16 billion a year in capex i mean, is there just a massive, massive kind of sponsor of just, you know, creating the hardware that drives the world. so it's not as if they're not used to spending a lot of money, and maybe this would be a way of more efficiently capturing that productive capacity and opening up to new lighclients. it is interesting if it was a market test to see how would you take it. the chips are bouncing anywhere. >> to your point, that's always a nice signal to the potential negotiators in any deal if the acquirer stock price goes up, especially when you're looking at a price tag of $30 billion, which would be if i'm not mistaken intel's biggest acquisition ever. >> a big one. >> and kind of a

has been worse on you automotive industry just hearing a little bit about cell phones if you look at tsmc way they bought chips don't carry stock carry an attitude and attitude is you will hold my inventory you will give it to me when i want, and that didn't work out for them except one carmaker toyota saw chip making process was over a quarter any demands like short term couldn't be met period. no matter what people -- had been -- all junk listening to the carmakers did it to themselves on cell phones, much volume 10 times bigger than cars alone, okay. we are starting to see the fact that we are going fewer cell phone might hold on to old one six or nine months. it is bad, but we will react, semiconductor industry will make this right look at intel, you know buying global founderry about to buy i am hoping that goes through intel will get bigger, global much more well managed will about many american company not foreign company that is things that semiconductor industry is doing right now. to make this right, it is -- not to be -- will not be solved by grandstanding from washington throw