tsmc builds them short-term, tsmc sees weakness sales declined with the weak recovery from china.les fell 11% from may morgan stanley calls it a bottom of the u-shaped recovery wedbush says they don't see the same upside as nvidia given the strong a.i. push that's why goldman sachs suggests tsmc is a long-term play with the revenue up not in 2023, but 2024 as the company spends more to build capacity in the united states, japan and possibly germany to create more advanced packaging for the a.i. chips. they are not only making chips for nvidia, but apple chips and keep in mind oracle purchased billions of amd parts which means revenue for tsmc they make the chips. now for nvidia the stock is up 215% year to date five times of tsmc and trading 51 times forward earnings. more than amd and intel and broadcom like tsmc, nvidia posted negligative revenue growth in t last quarter wall street is bullish with the high revenue forecast. why is this happening? everyone wants the business to run on a.i key bank's supply survey shows almost all supply chain players from cloud providers to star

there is -- tsmc talks about the readiness.e in platform and some of the upgraded platform will not be available until next year. i think, to me, the readiness delay is more complicated. it has to do with subsidies. the subsidies are going to narrow. also, some technical aspect with the specific equipment type. >> how do you account for the price and the geopolitical complications? >> we have been dealing with geopolitics since 2016 with the huawei band. highs will can was the chip subsidy, the second largest customer. i have been dealing with that since then. companies around the globe need tsmc and if there are geopolitics, i think coming is like apple, amazon, google, microsoft that need this, then we will have a bigger problem and there will be a broader implication for the tech industry then tsmc specifically. i think the geopolitics is more like noise that we have been dealing with since 2016 and it may not go away with that does not mean tsmc is at a disadvantage. >> what about ai? we are some commentary as to how much i

spend at the low end of the range tsmc also plans to low down production of its arizona hub due to lack of skilled workers here in the u.s., highlighting another issue for equipment makers so now the time to buy the dip, especially when demand for electronics continues to be weak in the second half of this year, according to tsmc? morgan stanley, mizuho both say buy since tsmc's long-term growth remains unchanged jp morganthinks gains over the next few years ak long-term hold. bottom line, artificial intelligence commute demand exceeds supply we've seen that with nvidia's conversations, but the pc smartphone business continues to remain depressed, especially in the near term. court? >> kristina, this so much. dan, you've been talking about the high premium for all things ai for some time what did you make today of some of the comments and the small percentage telephone business that exists right now? >> that's really the story i think karen has been really articulate about this the last couple of months this is going to be a secular trend that is going to play out for a very long time i

tsmc declining in today's trade about 3.3%.sung, tokyo electron, not far behind, falling even more by 5.5%. also bad news for the cloud space and software space in europe. sap shares tumbled in new york after second quarter sales in the cloud unit missed estimates. the german company's largest rose from 20% earlier is slightly less than expected. for the full year, sap bumped up its operating profit outlook but that cloud sales miss estimate clouded the profit outlook bump. let's talk the u.k. and rishi sunak, the conservative party has suffered a major setback, losing two of three seats up for grabs. joining us now is our u.k. correspondent, lizzy burden. lizzy: it is a major little upset for rishi sunak. of the three seats, that is the most geographically closest to his own seat. that is embarrassing in itself. he lost southwest of england, that one was expected to go to the liberal democrats that it overturns a huge majority, embarrassing. you have a double punch but he has been spared a total whitewash because the tories hu

how much of that is tsmc's concern? >> what we are seeing in terms of this better than expected really a value story. you are looking at a smartphone chip which is 30 or 40 dollars a go compared to some of nvidia's chips which are in the thousands. your margins are good and you have revenue, you want those factories will as well and that will get you your gross margins of that. ed: we have been talking about an ai hyper cycle, behind the scenes ian has been teaching me things. it sometimes goes well. this is a high-powered gpu, very specific use case, the training of inference side of the art language model. explain why being on the same board, gpu's, cpu, the rent is important. >> the better you can train and butter your inference is down the line. what do you need to handle those large data sets? better start and there are lots of memories that sit next to the. processors micron, although they companies should be benefiting from this. unfortunately, smartphones, pcs, not great. ed: ian king, mr. chip, we call him. com

tsmc drops as it was the ai frenzy may not last. that and more ahead. let's get you up to speed with a lackluster day in the markets. over to abigail doolittle. abigail: it is lackluster. feels like the worst first down day for many major indexes. some of the big tech reports while putting a bit of a wrinkle on that. tesla down 6.42% on its report, that is where profitability is an issue. elon musk talking about the idea that if -- rates continue to rise, they will have to bring prices down. mehta, alphabet, and apple all lower ahead of the reports. so much movement to the upside. if we flip up the boards, we will see that what this means for the s&p 500 and the nasdaq, we are looking at a down day. the bank index down more. the stocks are not immune from this. nvidia down. amd down. if you look at the other big earnings, netflix. i think we have a chart of that. the worst day. there is a continued puzzle. i'm sure you will solve it on this show. record blowout subscribers. where is the revenue? they are talking about keeping the double digit for the en

is this going to be a sustainable picture for tsmc?a lot of skepticism versus other prolonged inventory problems in the semiconductor industry and then they are grappling with the end-user demand for electronic products globally. but this has all been overcome by the optimism of the ai demand especially for tsmc. we have seen rather than expected results yesterday and also the ai demand is really something people have been putting high hopes on. especially they are a manufacturer for nvidia and they are seen as the leading company who can develop all the advanced chips. going forward, people are still -- second-half recovery especially with the end-user demand for electronics and also the inventory cycle starts normalizing in the semiconductor industry. i think, you know, basically, when we talk to investors, their views on the company have been very optimistic. kathleen: thank you. let's take a look out the markets are doing. green on the screen when markets open and you can see that building on against -- it had a nice pop. the kospi

the difference between tsmc and inindividual yea, tsmc pain madly on units we've seen improvement earlier comments, magnitude not enough to offset downturn elsewhere except nvidia. the difference, they're not only seeing the uptick in units but seeing a very, very significant upturn in content and pricing. that's because the -- what's going on in ai right now and the nvidia solution, they can charge a higher price than the prior generations. never before happened in semis, but give odors of magnitude improvement in performance and ceos worry about this. the more you save. bottom line for nvidia and several other places in the industry, revenue growth and asp growth -- sorry. asp growth adds to revenue growth first time in history of the semiconductor. >> the law, 3.0, whatever. go ahead. >> a function of slowing -- >> yes chris, thank you very much. >>> queso on chips flick to chips, netflix down nearly 10% after password sharing crackdown. users online claim they would ditch the service. mess around and find out despite that subscriber growth beat expectations but maybe not on enough for

tsmc and nvidia and tsmc are setting the next stage of growth in the semiconductor space. intel is playing catch-up and is more pc centric for our interests. ed: pc centric, the other area we want to talk about is cloud. we started this conversation by pointing out a lot of trading this week was encore legacy businesses. abigail mentioned microsoft aware investors looked at the performance of the cloud business from a topline growth perspective and what do you see there? jonathan: encouragingly, we are seeing some decelerate -- deceleration we have been seeing in cloud in this post-covid era starting to calm down and the deceleration at microsoft slowed a bit. and encouragingly we are starting to see the real positive impacts from the ai experimentation phase we are in right now impacting the cloud operators like microsoft, like google, so we think we are getting through the optimization phase post-covid. we are getting into easier comps and now we are starting to see ai become a material contributor to these platforms. we think in our broader digital transformation, ai is

term, the economy will drive volume through the ceiling next level >>> the world's largest chipmaker, tsmcposts a 23% fall in the second profit with a glut of slupplies and bringing down demand. >>> and easy jet tickets soared in the third quarter as summer travel demand reaches new heights, but air traffic control strikes in europe could make for a bumpy ride >>> and election campaigning heats up in spain with climate and energy policy in focus at the leaders debate last night. pedro sanchez says the opposition is ignoring climate cha change. >> translator: i say this to the right as well, this is an act of suicide and attack against our youth. >>> good morning we're going to kickoff the show with two bumper earnings reports out overnight from the u.s netflix and tesla. both reported growth in the second quarter as investors eye the impact of the firm strategy shifts, but both left wanting more let's start with tesla the automaker price cuts did not hurt the profit growth as some had feared with net income up 2% for the second quarter it managed to beat on the quarter with $25 billion of

a beat on estimates for tsmc.will look at any outlook they might give us in terms of future growth and demand. we will bring that to you as we get it. we are looking at a bond market rally that has decided to take a pause. it might have to do with the debt coming from banks, the earnings are over, they are coming to the market and we have to sell some treasuries to make up for it in your portfolio but we had the rally fueled at the beginning. the u.k. inflation data seems to be adding to the bond market rally, and stocks continue to climb. you have to wonder if this earnings season will make it difficult for it to be sustained? some disappointment at netflix, some disappointment at tesla. the good news came from apple. the new record from apple yesterday came off the back of a report that they are working on an ai project rivaling ai. if you want your stock to rally, may be mentioned ai. wheat prices, a surge at 1.9% yesterday -- a surge at one point, 9% yesterday. the russian ministry of defense saying, all vesse

. >> one to watch at the india open as we are seeing the likes of tsmc tumbling here, bringing down the rest of the trip space and ai trade this morning. think about how your global macro movers are looking. a mixed picture across equities. a drag down in the likes of taiwan and japan. bonds are selling off on the back of this. better-than-expected weekly jobless claims number out of the u.s.. the dollar moving higher as well as treasury yields. sovereign bond markets this morning. fx is looking a little bit more on dollar strength. peering back some of the initial gains after the intervention that we've seen this week. the korean won is selling off a bit as well. commodities are looking better than the rest of the asset classes here today. there's a lot of talk about thailand, india, this rally we are seeing has been insane. we will see how the tech space goes after we saw with some of these earnings that came out. david: i would be surprised to see how that could continue with one of its biggest stocks does what it did overnight in the u.s. the approach to india is looking like this.

no one pitching on buy rating for tsmc could about good opportunity to get in. >> good stuff.> get more now how to play this semi spiace and sell-off good to see you. is this like a record scratch on the "happy days are here again "song or what? >> more technical than anything else clearly we knew that smartphones, pcs, handsets were going to be remaining weak we knew the boost was going to come from artificial intelligence i think this is more about technicals just getting way extended just look at the smh trading 153. other day on "half" a new high well, july 18th recorded new all-time high. 153 today. yesterday on "halftime" i talked about the air and the 50 day and 200-day average. apply that thesis to this and down 121 50-day moving averages down at 143. i think it's about technicals more than anything else. kristina did an excellent job semicoacs semiequipment makers gaining. >> gave me reasons why you wouldn't think the stocks would be at a high esmh. pc, slowdown, handsets unless you believe that those have troughed? maybe that's what the market was betting on i wonder

tsmc trading earnings and fundamentals should bottom in '23.rom there see a fundamental improvement as inventories normalize across the semiconductor space. >> leave it there. dom rizzo, t. rowe, thank you. talk soon. >>> up next, staying in the cautious camp. playbook from one of the top-rated wealth teams in the country. morgan stanley's chris toomey. 52 week highs. at post nine next to make his case. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. i did have hearing aids from another company... i was just frustrated... i almost gave up. with miracle ear it's all about service. they're personable... they're friendly. i'm very happy with them. we provide you with a free lifetime of aftercare. meaning free checkups, cleanings, and adjustmen

we had tsmc cutting their outlook and postponing production. exports of chips are not getting better when it comes to career trade numbers. so, yeah, haidi, we continue to see the bottoming out to come at some point. haidi: [laughs] we do have all of that. watching sk hynix in the next hour, and lots more to come here on "daybreak: australia." in the thick of earnings. kehe obloomberg. ♪ you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ 5-hour energy. think of it as 5-second coffee. for when you wake up too late to make it. or you don't have time to wait in line for it. or you're just too busy for a coffee break. 5-hour energy. the 5-second coffee. shery: more now on china's removal of she nghe an her in ministry. he disappeared from public view into -- qin gang. student media gave no

the europeans are not -- >> it's not just the -- it's the chips that are made by tsmc made by u.s.hip-making equipment. it's lot like we make it here. >> where is the intellectual property of the chip cycle where is it? it is with kla, applied materials, and most importantly, lam research those are the three most important companies -- >> asml was all u.s. -- if you go back in history >> if you go in there, all you're going to see is the genius of tim archer >> back to china if they really do enter a deflationary spiral, that's not going to be good for the world economy either it's going to result in cheaper goods finding their way here >> since we haven't dealt with deflation here since the '30s, people don't don't know it's as pernicious as inflation. it wipes out your savings. it makes it so you can't really grow but most importantly, it makes it so you're a pessimistic nation >> right >> and india, i mean, how many times have you read pieces in the last six weeks about the future of india versus the sunset of china? now, china has -- they got to solve -- china's on the wrong si

taiwan's tsmc, the world's largest contract chip maker says it doesn't expect any direct impact on itsduction. despite the statement, the shares plunged almost 3% in trading in taiwan, over concerns of growing tensions, and the us secretary's visit to beijing. a top chinese trade adviser says that this is just the start, sending a not—so—subtle message to the americans just before the counterparts are sat down face—to—face in beijing for the first time since the covid pandemic. the visit by secretary yellen also comes at a time when the chinese economy looks to revitalise. that experience supposed covid rebound in the first quarter of the year the latest data has shown signs of stephen mcdonald reports. street food seen in china appears to show an economy rebounding strongly from the coronavirus. experts say that is not the case. but, rather, these consumers in the small city are choosing a low—cost tasting option at a time of pressure on household income. translation:— translation: this place is . reat translation: this place is ureat for translation: this place is great for ordinary

and also recently we did [indiscernible] so samsung is the only alternative supplier over tsmc so weity from ai for the share price going forward. [keyboard typing] shery:shery: there seems to be a lot of optimism over ai demand. we had sk hynix pointing to that segment of demand that could lead to her recovery too. what makes you think this could offset the pressures we have already seen for a long time. we have been waiting for that turnaround to happen in trade numbers out of south korea don't necessarily seem to be pointing to any optimism. sk: yeah, actually, yeah, i think this is ai demand have a limited [indiscernible] and tsmc guided may not enough to offset the current weakness in the overall demand, but we see some meaningful production cuts from memory suppliers. and also, well, actually, you are showing some of the new foldable phone which was unpacked last night, and yeah, we are hearing that there is some potential delay in the new iphone deliveries, which is expected in september this year but there is a lot of noise regarding the supply chain, so the samsung may have

tsmc 0.9%. yvonne, where that stock goes, the market follow suit, doesn't it?it certainly does. tsmc certainly has the biggest weight, but then you look at the rest of the market. close to half of it has been dominated by either tech or hardware related themes. that was one of the big questions we asked the taiwan stock exchange and after this incredible outperformance, large and mid-cap stocks, the best-performing among the apac region only second to japan, what does the outlook look like? i asked that question exclusively to sherman lin, the taiwan stock exchange chairman and ceo. >> outperformance is the big turn in the asian market. the pace of the u.s. is high-scoring, and also the local economy remains steady. for the investor, most investors, we are paying attention again on twse, and the cases expected for the second half of this year. yvonne: how important is it that you have had all of these headwinds? everybody is betting on the tech cycle bottoming out. is that enough to offset what you are seeing, the tightening of the fed, to keep momentum going?

>> i think we will focus on whether tsmc is going to revise itself for the outlook.ct the four years this year to diplo to net single digits in u.s. dollar terms. so i think investors would be eager to see that things may be looking up a bit after the frenzy over ai, chatgpt like services. but at the same time, xml, which is a major part of tsmc mentioned that they see there is some shout out of the uv demand. that is their customers are delaying securing their most advanced equipment to make chips. i think investors will be interested whether tsmc will trend -- trended spending policy amidst the weakening global economy. haidi: once the chinese government trying to do to help local firms develop their ai capabilities question mark >> -- capabilities? >> the chinese government, the ministry of industry and information technology came out yesterday saying that they would help computing infrastructures to help our companies develop their ai capabilities. and by completing infrastructure, it was the chinese government that would help build these hyper scale data centers

berlin on subsidies for the construction of a plant in the amount of 10 billion euros, the taiwanese tsmcreceive 5 billion euros for the implementation of similar projects, and that the german manufacturer will be left with only five, by the way, the funds are allocated from the off-budget climate fund. this indirectly indicates that for berlin the chips produced on their own land. let even american and taiwanese manufacturers become more important than green travel. spain finds itself in political stalemate after elections and prime minister a socialist to form a collection government will need the votes of the catalan separatists. it would seem that. and then there's the economy. but moreover, catalonia is the richest region of the country. it accounts for about 20% of spain's gdp . the pro-independence body demands more autonomy from the head of government in spain, there is a somewhat absurd situation. seven deputies of the party together for catalonia submit to carles postemon, the former head of the region in 2017. he had to leave spain after the catalan independence referendum whic

with berlin on subsidies for the construction of a plant in the amount of 10 billion euros taiwanese tsmc euros for the implementation of similar projects, and that remains only for german manufacturers five, by the way, funds are allocated from outside the budgetary climate fund. this indirect evidence that for berlin chip produced on their own land. let even american or taiwanese manufacturers. much more important than the very notorious green trip . exchange rates excuse me , the leaflet has fallen. 36 kop. roman artyom thank you, we continue. now, to the reports of the last minutes, a gas explosion in a five-story residential building in nizhnekamsk in tatarstan, an emergency occurred on the first floor immediately after that a huge fire broke out. while it is known about two victims, 15 residents themselves left the house , nine more, including the child, were rescued by the employees of the ministry of emergency situations. now extinguished, experts are investigating the reasons for the incident, it is possible that the supporting structures of the building were damaged. they still

on subsidies for the construction of a plant in the amount of 10 billion euros , the taiwanese ti e tsmcill receive 5 billion euros for the implementation of similar plans, and there will be five more left by the german manufacturer , by the way, funds are allocated from the off-budget climate fund. this indirectly indicates that for berlin the chips produced on their own land. let american even taiwanese become more important than a green trip. the monetary authorities of the united states and britain fined the crisis bank for a total amount of 380 million dollars, of which 2/3 requested the federal reserve, the rest of the bank of england well and the reason is the risky asset management in the period from 20 to 21 years. however , this amount will have to be paid already, well, to the owner who bought the ubs bank that went bankrupt not so long ago. he will also have to create a unit to oversee the financial crisis, the us share of european airlines and tour operators are rapidly losing value. well, among them are the british carriers of the izijet british airways and the jettu tour o

and china is because tsmc is the world leading manufacturer of advanced ai chips.the reason republicans and democrats came together to give billions of dollars into building our own ships in the u.s. is a testament to the fact that chips and access to advanced semi conductors is everything. you can perform a world where more services are performed by ai in the ai will be stored in the cloud and more of the economy will move into these data centers and that makes it an important strategic asset. keegan: foreign policy just did the issue on geopolitics. there is a book called for battlegrounds, power and the age of artificial intelligence. it's quite good. the real battle for ai is not the algorithms or models or business use case, it's the infrastructure behind this because it's the only way it works. there will be increasing interest in the private sector. my colleague at oxford has a book on cloud empires that talks about this that i highly recommend reading because this is absolutely key to the future of all of this stuff and if we look at how the national securi

a group like semiconductors last week, tsmc sold off hard when they said the a.i.e're going through an electronic slowdown in our end markets. >> anyone who tries to push against that, is going to have a problem right now because the markets are betting on that actually happening so if we get that, yes, i think it's going to slow down a little bit. right now, look, we're going into -- the biggest problem i have, this is the seasonally weak period. second week of july to the end of october is the weakest 2 1/2 months of the entire year. actually 3 1/2 months. august, september, october 3 1/2 months for the year. that's going to be a headwind for the markets. >> all right thank you. we've been warned. bob pisani. >>> check out the biggest gainers on the nasdaq 100 this morning. some of the chinese internet stocks in there, jd.com and then the mega cap names in the u.s. that will be reporting this week like alphabet, strong showing. apple, nvidia, microsoft, lygher on amazon is lagging "squawk on the street" returns after a quick break. ♪ the biggest ideas inspire new

amodei: an important player on making the base fabrication side with the tsmc in taiwan.nd then companies like nvidia within the united states that produce those into gpu's. i don't know exactly where the process happens. sen. hawley: as par as securing our supply chain in this area, should we consider limitations if not outright prohibitions on components manufactured in china? mr. amodei: i think on that particular issue that is not one where i have a huge amount of knowledge. i think we should think a little bit in the other direction. are things that are produced by our supply chain, do they end up in places we don't want them to be? we have worried a lot about that in the context of models. we had a blog post out today about ai models saying you might have spent a large number of millions of dollars. maybe someday it is going to be billions of dollars to train in ai system and you don't want some state actor or criminal or rogue organization to then steal that in use it in some irresponsible way you don't endorse. sen. hawley: but may get at this problem -- let me ge

and china is because tsmc is the world leading manufacturer of advanced ai chips.the reason republicans and democrats came together to give billions of dollars into building our own chip factories in the u.s. is a testament to the fact that chips and access to advanced semi conductors is everything. not only are transistors everything but you can imagine a near-term world where more and more services are performed by ai and those ai's will be hosted in the cloud. more and more of the economy will move into these data centers and that makes it an important strategic asset. one that i think will be an access one for a lot of geopolitics going forward. -- point four a lot of geopolitics going forward. jacob: i was wondering if you had any final thoughts on that? keegan: foreign policy just did an issue on ai and geopolitics. most of the articles are quite good. a ch a re --schare. there is a book for battlegrounds, power and the age of artificial intelligence. it's quite good. the real battle for ai is not the algorithms or models or business use case, it's the infras

we are longing for advancing semiconductor capacity to be more -- tsmc in the chip sector.ely there is a conversation around property in china and the extension to complete projects there. it takes us into the broad risk rally today. asian stocks, session high, highest level since yesterday. seeing gains for the first time in five days. every single sector is up. we are hanging -- heading into the hong kong lunch break. let's see if the momentum continues. the risk rally looking just like this. green across the board. this is bloomberg. ♪ is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company. old school hard work meets bold, new thinking, ♪ to help you see untapped possibilities and relentlessly w

tsmc falling 23% on the annual basis and 12% on the quarter by quarter to $5.85 billion that is above expectations and does come amid falling demand for chips. slowing consumer demand and struggling on the back of that with the demand no longer continuing to play into the market as it had particularly during covid-19. that is showing a lot more demand coming in for the a.i. chips. the rest of the chip market is going down frank. >> arabile, thank you very much. >>> we will turn attention to the other top stock story. shares under pressure this morning of netflix on the back of the quarterly earnings results. topping expectations, but revenue missed the mark. sub describescribers blowing pa estimates. something greg peters discussed on the earnings call >> thebusiness impacts of that product experience will roll over several quarters. it is not an overnight things because they are applied gradually and because some borrowers with w-- will not sign up immediately for an account, but maybe three months down the line. >> let's stay in london with arjun kharpal with more on the netflix res

tsmc postponed the start of production at its signature project in arizona until 2025.he cut in revenue projection comes after it posted its first quarterly profit decline in four years. it underscores the difficulties of chipmaking in the u.s. despite washington's insistence on reducing global reliance on asian facilities. cbc capital partners raised over 29 billion partners -- cvc raised $29 billion for the private equity fund. cvc began raising its buyout fund in january and initially targeted $27.8 billion. wanda bonds have seen a record rally. our sources say the group expects to complete the transaction as soon as this week. the company plans to use the proceeds to pay its $400 million bond due on july 23. shery: bloomberg has learned the ftc is poised to pause its in-house trial against microsoft's acquisition of activision blizzard. let's get more detail. what does this mean for the deal? sara: this is not definitive but it is one more step forward for microsoft being able to clinch this deal to buy activision. the ftc today forwarded that it would suspend its t

the tech story is a tsmc story. this is what the session looks like.hat is happening in terms of the evolution of the day. gaines first thing this morning. initially it was sideways, and then gains. an incredibly tight range throughout most of the day. we are up, but within that i do not think there is a lot to talk about. below the index level there is a lot to talk about. we are interning season. this is when it gets interesting. electrolux, there is a macro signal. they are seeing a demand issue. it is worse than the market it was into submitting. they are looking to offset assets against what they are seeing. i think there is a macro signal in this. you would've thought if people are moving house they would be buying this kind of stuff. they are not. the mining sector is weak. the smelting bit of the business is also week. it'll be interesting to see how the other miners do. is the mining sector bottoming out? it has been having a tough run recently. i think there is a read across from tesla into what is happening with volvo. this is a company that

caroline: the ai hyper cycle is helping a company -- helping tsmc, but can it support the second halfover of blizzard,

it is about what is happening tesla and netflix but also tsmc as well.ok when it comes to the mobile market. europe is down 5.4%. and we are down by .7% in rate written-u.s. dollar -- great britain and the u.s. dollar. we have had a v-shaped balance -- bounce in terms of yields. yields will push back higher once again read we will talk about all of this in the next hour. research for global markets derek cap knee -- derek halpenny will be joining us next. this is bloomberg. ♪ 76% of 23andme health customers surveyed reported taking healthier actions. because they know health isn't just a future state. health happens now. start your dna-powered health journey today with personalized insights from 23andme. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. - we're taking the family to cancun. - i'm off to iceland. - my husband and i are going to paris. - how are we getting there? - with going. - just sign up for

and that's one of the reasons why we recruited tsmc to build semiconductors as well.goes back to the idea that we don't have enough water for everything. human wants are always unlimited. our ability to fulfill them is limited. we don't have enough water for everything. what do we have enough water for? if the state wants to continue to pursue the high-tech industry, knowing that it is very water intensive, that will entail shifts of how we can consume water in this state and what it's used for. by nature, just has to, because there are trade-offs. tracy: so just on this point, this might be a slightly unfair question or a difficult question, but i mean, looking to the future, is it just inevitable that water constraints are going to themselves act as a constraint on economic growth? kathryn: i don't think so, because i think that we are capable of managing our water supplies to meet the purposes that we find most valuable. the politics of that are really hard. but we are capable of doing that. the technologies exist. it is not that difficult from an economic or techn

tsmc -- ashley: don't know anyone who has it. the same thing but it is a huge company, wise it being delayed? they are a pixel smart thing. it is not popular. ashley: let's look at meta, and update on threads. lauren: the apps has 26 million plus users in the first 12 hours since launch so the number keeps going up. ease of use, you can use your instagram handle. kim kardashian, jennifer lopez, aoc and others. ashley: what is tesla doing in this tough environment? lauren: they sold $8 million worth of tesla. guess what she got, meta, $600 million worth. ashley: next one, two authors just launched a lawsuit against open ai on the ground, what are they suing for? lauren: open ai used their content, used what they wrote to train chat gpt, they are suing because they never gave their consent, violation of copyright law. this is going to be a big issue, the clash between content producers and ai producers going forward. i want to tell you one thing. the novelty of ai held the stock market overall the past couple months, traffic global

nvidia >> nvidia. >> and then the chips are manufactured by tsmc, which, by the way, reported numbersse very much want the highest from nvidia, and nvidia, there's a lot of good commentary out of late, but -- including, geez, goldman saying it's a big deal. >> reiterates a buy today. >> whoa. >> yellen did try to argue, look, these controls that we have going on are targeted, they're not going to affect your overall economy in a material way, which when you're doing 5% drops in producer prices, like we got last night, that's the biggest drop in, you know, wholesale pricing since '15. >> when are people going to realize that the on-shoring is doing better than the off-shoring. i urge people to go to walmart go no further than checking the labels of where things come from my daughter and i were marveling that it's sri lanka and jordan and pakistan, not china. it's countries -- when i talk to walmart about it, they're really not that -- they're more anxious to talk about what's made in america, which are american flags. but i would say that if i were a chinese trade representative, and i

and later, tsmc will give us a fresh read on global chip demand. plus, optimism returning to india's tech sector. and winning recession fears drive the $46 billion stock rebound. welcome to the show. breaking news out of the gates. this could be a big one. just looking at how this headline is phrased. china is considering easing some of its mortgage rules to spur homebuying in big cities. this gas in many ways is different from what we have seen so far. really gets at one of the core issues here with no weakness in the property sector, which is demand. chinese authorities are considering easing homebuying restrictions in the biggest cities, potentially removing this article that has curbed demand in the likes of beijing and shanghai. in the backdrop, too, is the home price data we got over the weekend. certainly underscores the need for more things like this. yvonne: yeah. it has just been the steady drip of news flow of more support measures, right, not just when it comes to the currency, the private sector, and now, this. this bloomberg scope wil

what here in taiwan where they have tsmc, the world's largest manufacturer of these chips, they wantensure the world's supply chain goes uninterrupted. and they're concerned about the fact on this small island a number of the world's chips are produced. they're trying to move some of these chip production facilities to places like the united states, elsewhere around asia and the world. the problem they're having though, they haven't been able to match at any other location internationally the productivity they have here in taiwan. these are people with advanced degrees who are often working very long grueling hours six days a week, and that's how they're able to produce these chips in such a profitable way. here in taiwan a magic formula they haven't been able to replicate in other countries. >> i'm alex marqardt in the situation room. >>> out frne

and, you know, you've seen that with other names that have come out too, obviously, accenture, tsmc,can run through a whole list, but that's why you have to separate. charles: you tweeted that you closed out your microsoft position, but you were at least one of the first big names on the street on the meta train. almost everything single day -- every single day, here's a new upgrade. i want to ask about, you know, the business there, what's going on. and, more importantly, everything seems to be clicking, even reel ares. but ironically, the metaverse participant of this is still problematic for a lot of people. is it farfetched to say should they consider dumping that idea? >> no, i don't think they should. and so in terms of who a.i. is helping, meta is using a.i. to help recommend videos to people. and and so if you look at reels which competes with tiktok, september of last year they were doing about a $3 billion run rate business. now with sort of this a.i. recommendation engine, they're doing a $10 billion run rate business in that. so that's really helping them out. now, we can

i think there's always a chance that tsmc could splip erp. as they transition from a type of transit ter to an entirely new infrastructure. there's going to be a possibility for a catch-up. >> chris t book is called "chip war. as i said forecast you're interested in this topic, go out and do it. thank you so much. >> thank you. >>> still to come this morning, following the money. which gop candidates are leading the 2024 money race. we're going to get into that topic next later we'll dewith adele freeman. you can get squawk pod on any podcast and listen any time. we'll be right back. let's talk politics with punch bull's jake sherman. let's talk about what a lot of people are trying to figure out and that's how the republican race is going to really firm up the race for president, who's going to get the nomination. we've been looking for a long time at donald trump kind of pulling ahead in the polls and now you've got the membership i think people were surprised what they saw with die shim. he's going to have to find new donors because a lot

watching that 1% lower, so certainly it kinda continues on the story of what we heard from tsmc as wellat may be the downturn of the chip industry is deeper than we offers thought. david: to your point, advent tests reports later today, that would be the latest clue on what is the notoriously incredible -- cycle also for the makers. we always seem to be over correcting in either direction. we will get more on that in just a moment. the inflation printout of australia is arguably the biggest market story in the last two hours. missed just about across the board, not completely but really coming in well below the median estimate and coming in near the lowest end of estimates. couple of comments coming through. the weakness in the currency may test support, westpac is out, the gains we see in the aussie dollar might be hampered on these bets that we have reached peak rba rates. there's also a, coming throughout of may back. because of inflation prints, today it's dimming the prospect of any move out of the rba next week. there we go. yields down, aussie down, banks are on the way up 1.5%.

we are watching the tsmc dispute, which might offer more guidance.te the fact they have lots of ai chips orders from customers like nvidia, but the thing is they are still affected by the sluggish demands for the market. so we might see a 10% decline for the second-quarter revenue this time. yvonne: the headline gives that away, but india tech stocks, we saw it rally on friday. what earnings are we looking at, like infosys? felix: infosys is the second largest i.t. exporter firm in india, but the thing is we do not expect to see a strongly second-quarter revenue because we are talking about spending cuts in u.s. banking and financial services sector. the other thing for india tech, the worst is already over, so we are seeing the settlements -- sentiment in the market is improving, but we still need to get more evidence from the earnings announcement. yvonne: thank you. felix tam, joining us on what to expect from the earnings front out of asia with evergrande being the big one today. when it comes to the u.s., it is bank earnings season this week as

companies do in certain stages of chip development, not as high-profile as tsmc in taiwan.bly not as high-profile as asm, the leading creator of lithography equipment. chinese companies have a near monopoly in certain stages of chip development, things like wafer cleaning, wafer development, important stages along the way, so that if china is trying to develop its own domestic chip industry, these will create additional hurdles for them. the u.s. and allies are focused at the high-end, most advanced semi conductors. they will be able to do business with legacy chips used in things like automobiles or washing machines, that are less strategic for military applications. shery: so we know that the rivalry in tech between the u.s. and china has been going on for a while but how did become centered on the semi conductor industry? peter: chips are becoming the lifeblood of the global economy, a bit like oil in the past. chips are used in pre-much everything. we know about smart phones and computers. they are also in the data centers that run all sorts of applications on smartphon

tsmc, which is trying to do that in arizona, will tell you as well it's just not that easy. >> yeah.l, we've got a ton of other earnings to hit with names like roku, mondelez, and sweetgreen on the move, taking a look at futures at this hour in the green you can see there, dow is indicated to open about 170 points higher this morning more "squawk on the street" when we return. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. >>> i want to show you the top gainers on the ndx for the week. you take a look at pdd holdings at the top of the list with a gain of near 16%, align technology, lam research, good earnings, stock up 14% on the week applied materials. and speaking of chips, there's micron with a near 10% gain out of the ndaasq 100. opening

in part we have sharing news from tsmc, the biggest manufacturer of nvidia designed chips.ll just, you know, there's a shortage, basically, and so when you want to look for the beneficiary, oftentimes you need nothing more than take a look at nvidia's stock price $1.3 trillion. >> sitting on top of the qqq's ahead of microsoft and apple today. the biggest gainers on the overall s&p 500 this morning again, the winners today, as david mentioned, are in the information it technology. the chips and materials are having a good day. that sector is up 2% and technology, utilities, energy and communication services are the winners a lot has it to do with earnings 3m up 5% off earnings. we'll be rightac bk. meets bo, ♪ to help you see untapped possibilities and relentlessly work with you to make them real. ♪ >>> welcome back to "squawk on the street." i'm leslie picker with your cnbc news update. the biden administration is pushing for better health care coverage for mental health treatment. the white house announced today new regulations that would require insurance companies to st

potential of ai, how do you feel about those northeastern tech care -- hardware companies like samsung or tsmcd they will remain solid. in the ai space, we are like coca-cola. a lot of people made money on the fridge raider, that's with a ice at the moment but the real money was came from coca-cola using the refrigerator. the people in the companies that will use ai will benefit. looking for the next coca-cola equivalent in ai. the manufacturers like you highlighted, the next stage is the new and upcoming who can take advantage of that. we are looking at the next level, the users of ai and where the advances will come through. shery: great to have you with us, cio at nomura. this of course as we continue to watch japanese banks at the market open in tokyo. we are seeing downside being led by mitsubishi ufj. we of course had seem two of japan's largest lenders posting quarterly profits. the beat forecast, we are talking about -- as well as the financial group. these positive numbers coming even before we actually saw japan coming out of negative interest rates as of yet. thanks in the u.s. and

as far as i understand it, there are plans to sabotage all the tsmc operations in taiwan if an invasion were to take place. but all of that capacity it would be taken over by china. >> what is said about that scenario is that would be the best-case scenario,? rights >> if there is an invasion of taiwan, maybe all of the capacity or most of it gets sabotaged and that would all be in the dark for however long. the point i'm trying to make, supply chains are absolutely critical. i'm thinking very seriously about the coupling efforts. i think it is vital at every point of the supply chain we can. if we don't do that with china soon, frankly we should have done it a long time ago, if we don't do it very, very quickly, i think we're in at lot of trouble. we've got to think seriously about what may happen in the event of a taiwan invasion. >> i want to empathize with professor russells point even more strongly. we are trying to move some of the chip production capabilities to the u.s.. but we are talking about 2 to 3 years for some of these theories scary applications. and maybe not much longe

expecting in the end market and the cycle that you would normally see in semiconductors right now i think tsmcoured a little bit of cold water on that yesterday, which is why at the we saw the stock down, but for a stock like nvidia or amd, sure, when you're exposed, you're not getting the weakness you would see in this period of the economic cycle as far as the overall market, it's a little bit treading water into next week, which is such a heavy catalyst week. now that we're on friday, we ge 168 s&p 500 companies reporting next week. we've got the fed meeting, which we all expect a hike, but we don't know the signal that powell is going to send about september and the future we get an ecb meeting and a bank of japan meeting >> one would expect sara eisen is going to have quite a week, except i don't know that's going to be the case >> i'm here monday and tuesday don't worry. i'll set it up for you so you can take the ball. >> please. >> taking off on fed day >> you just met with all of them how can you not be here when they all speak >> i'll be there in spirit if you need -- >> will you call