a lot of things happened for tsmc.build a new plant in northern taiwan was canceled because of local protests. even taiwanese are not keen to have tsmc in their backyard. the department of commerce came out with stricter rules that closed loophole on some of their client such as an nvidia selling chips into china. tsmc says we can manage that. it will not have a big impact. they will get by. the bigger picture is tsmc's destiny is increasingly out of its own hands. it is setting up in arizona as we know. we have japan coming on. dresden was announced recently. three new countries will have factories in. previously there were mostly in taiwan with a little capacity in china. they have to deal with stakeholders in multiple countries and that is something they are not used to. they have to deal with a lot of other people telling them what to do. that is something that means tsmc itself does not have 100% control over its own future. yvonne: this was one of the most widely held stocks in asia among global actively managed

tsmc was a problem child.erg's avril hong with all the details. what stands out to you in these earning results? avril: just looking at these numbers, yes, we have that margin and that profit beat for to cmc but i think one of the key considerations -- tsmc, but i think one of the considerations is how this was affected because of the weakness in the taiwan dollar at that time. that might have affected the numbers we are seeing based on gross margins at the moment. there was a lot of pessimism going into this results. we had those concerns as you flag from asml about how those orders for the third quarter had punched. asml has tsmc as its biggest client so there was a big hurdle to overcome in terms of investor confidence and perhaps the outlook on what they were expecting of tsmc. there was also the continued concerns about whether whatever ai boom we will be getting will be enough to offset the slogan the semi conductor sector overall -- no slowing in the semi conductor sector overall. on the back of this, w

norm am al levels in q-4 and they are still on track, four nodes in five years so they can be like tsmc, a foundry by 2025 so, they appear to be on track with all of their goals, and that's why the stock is reacting so positively. >> i'm surprised at this huge jump given that data center was, in fact, weak, i would have thought that the knee-jerk reaction would have been, well, not up 8%. maybe somewhere between up -- >> i think the foundry business plays a role they have a new customer they didn't say who it was but that's showing that the two-year turnaround plan may be working, right progress in that data center weakness, we heard from texas instruments, tsmc weakness, so, it's not something that is necessarily very new at the moment, and yes it's hitting his company, so, i wonder amd could be next, too, in that sense. >> kristina, how much of this, you know, they are sprinkling in a little a.i. pixie dust the pipeline doubled in the last 90 days. >> from what >> so, it's a bizarre -- but the point is, they are trying to re-establish their former dominance in foundry, and -- but also

the biggest customers are tsmc and samsung. is this truly an asia dependency story?s dealt with a lot of geopolitics. you happened covering closely -- you have been covering closely the idea of potential sanctions from the u.s. eating into what the bottom line might look like. i love this line in your reporting where you say asml's biggest customer tsmc dropped 11% in the third quarter. when i talk about the magnification of success and pain in the chipmaking sector, this is a great example. when it comes to the demand story what does the company say? april: when you talk about geopolitical tensions, the u.s. announced it is expanding the scope of manufacturing subject to export restrictions. asml said it is in the process of digesting regulations. in its preliminary assessment asml said the new rules affect a limited number of chinese factories that produce advanced semiconductors and it does not see a material impact on 2023. longer-term these rules would likely impact the regional split up its system sales. were that currently stands china made up 46% of sales for

the company also said it is on track to catch up with rival tsmc in an increasingly competitive industryrted their earnings, but unlike intel, it missed expectations and sell shares falling about 3% in after—hours trading. the us auto sector is also in a state of flux with the ongoing worker strikes that lasted six weeks demanding fair pay and better benefits. the company said the strikes were likely to reflect and the results in the next corridor. ford yesterday said it reached a tentative deal with the united auto workers union pending approval from union leaders. the union has asked striking workers to go back to work during the voting process. in the world of sport, the rugby world cup closes this weekend with new zealand's all—black facing the springboks in paris. they expect record profits from the tournament. this isn't just a story about sport, it is also about travel and strong consumer spending. nuno guerrero told me that many fans are willing to forfeit goods so that money to spend to go see their favourite teams. we have seen travellers want to see their countries live, and o

shery: what about tsmc? >> with tsmc, they kind of follow the chip market.worth for the market. we will see weakness in smartphones and pcs followed by strength in the ai business as we see am i300 and the back half of the year. nvidia has really strong revenue growth, and as a result, there's takes on the near term numbers. but we look out 18 to 24 months, which is what our investment time is, we feel great about tsm. shery: what do we see in terms of cloud consumption, have we seen the bottom? >> is a couple different moving parts. like i said, pcs have probably bottoms, smartphones are probably bottom. that makes anywhere from 40% to 45% of the total chip market. for overall i.t. spending, cloud consumption is a lot of it. i point people to look at aws numbers and also different consumption numbers like data down. we will see if those companies have bottoming fundamentals. cloud consumption has probably bottom this quarter. shery: good to have you with us. you can go to tliv to get commentary and analysis from bloomberg's expert editors. as we get th

the company also said it is on track to catch up with chipmaking rival tsmc in an increasingly competitivessed analysts expectations and saw shares falling about 3% in after—hours trading. the us auto sector is also in a state of flux — with ongoing worker strikes that have lasted six weeks, demanding fair pay and better benefits. the company said the strikes will likely reflect in the results for the next quarter. stay in touch with the @bbcbusiness team and me on socials, i'm @tadthnright. rhianna managers the council save garden herbs where social services, police, education and health come together for calls expressing concern about children. she with colleagues have to ensure their responses are safe and appropriate. i love myjob, i want to do a good job. it is not lost on me the sense of responsibility that comes with being a group manager. ibibic of responsibility that comes with being a group manager. bbc wales research shows _ being a group manager. bbc wales research shows that _ being a group manager. bbc wales research shows that responsibility. research shows that responsibili

the company also said it is on track to catch up with chip—making rival tsmc in an increasingly competitivetel, it missed analysts expectations and saw shares falling about 3% in after—hours trading. the us auto sector is also in a state of flux — with ongoing workers strikes that have lasted six weeks, demanding fair pay and better benefits. the company said the strikes will likely reflect in the results for the next quarter. to new york, where sam bankman—fried — known better by his initials sbf — has taken the stand to testify in his own defence. the former chief of the collapsed crypto exchange ftx faces several charges, including defrauding his customers by as much as $10 billion — charges that he has denied. 0ur corespondent erin delmore has the latest on the latest from the courtroom. it was a stunning beginning to sam bankman—fried's testimony. this is the most eagerly awaited moment in this trial. we expected he would take the stand in front of a jury today. that was surprise number one. judge lewis kaplan dismissed the jury. he told them simply, "there's something that "we need to

looking out for because those are bellwether stocks and earnings showed positive signs and we have tsmcext week. that will show us that the chip bottoming cycle is here in the previous quarter. rishaad: thank you indeed, asia stocks managing director. looking at this data point, a producer price of eight figures, how do they translate? in terms of estimates, indeed the inflation forecast in the core cpi number will be key here. 4.1% is the estimate but we are looking at if we get a strong rate what does it mean? and stirring up the pot when it comes to thinking within the fomc? they talked about inflation for the september 21 meeting, this is what they had to say. >> it was dated but the first time all year that they did not mention the word recession. there were three mentions of term premium which is something the fed is watching. they also said the balance of risks seems to be two-sided now between over and under tightening here. many see downside risks to growth as well. let's get perspective from the macro strategist at ubs wealth management. it is interesting why we see this risk

we are looking at tsmc. this stock has a raised $77 billion of its market cap sink the june i.t is lost more value than any other asia traded stock. we are bracing for earnings after that and the prolonged weakness in the chip sector. s is bloomberg technology. ♪ caroline: time now for talking tech. several taiwan-based tech firms are helping huawei build a secret network of chip plants across china. it's unclear whether this violence american sanctions. huawei did not respond to requests for comment. japan is approving as much as $1.3 billion in subsidy for the micron factory. it will help micron in its lithography equipment. it's used to make advanced chips in it marks a win for micron. a bipartisan group of u.s. senators hope to meet g jinping in china next week with discussions about micron. the delegation led by chuck schumer and republican mike crapo will raise the issue of mike rounds ability to do business in china. micron faces an ongoing probe by the chinese government on cybersecurity. we want to get more on this. ultimately, how likely is it the senators will meet w

two concerns on the geopolitics side as well as the underlying advanced ship demand, especially at tsmcis front and center and so far so good, asml seems to think. alix: where are we in the semi cycle. i know you do not cover nordic semiconductor but there read is not great. where you think we are in relation to that for asml? janardan: we think we are just about passed the bottom of that cycle. we have from the early part of last year, we were calling for a deep down cycle. we think we have hit that bottom and risen a little from that bottom. some sectors are delayed. others are going earlier. iod is probably a little bit slower and going through that deep correction, which is what is affecting all of these. we do not think we passed the worst but it is always a little darkest before the dawn. when everything is quite bad it is easy to take a gloomy look on the future but things are improving. memory prices are improving. see signs of improvement elsewhere as well. we would tend to be looking beyond the bloom coming out of, but -- -- coming out of companies right now saying things are

investors bracing for more tech earnings with tsmc, out later. and an indian navigation company taking on google. the ceo joins us later this hour. yvonne: how to navigate these markets is still the key question with this escalating conflict in the middle east with president biden's trip. certainly did not really help home markets -- did not really help calm markets. stocks are selling off, bond yields continue to take higher. 11 basis points higher for your aussie 10-year and we are ever so closer to hitting 5% for the u.s. dollar yield. you are seeing a lot of the pain, the malaysian ring in the lowest since 1998. the south korean won, despite the bank saying they have to stay restrictive for some time. we are watching thailand and watching india, too. rishaad: absolutely. having a look at what is going on in bangkok. that market just opening and having a look at what is actually happening. the index falling about .9% at the start of the session. looking at also the rupee in particular. just off the day before yesterday's record low, so edging

tsmc is axing plans to build an advanced chip site at taiwan. -- on one of the more prominent startupse with the likes of microsoft and openai and apple ceo tim cook made a special appearance at a tencent gaming tournament in china and this comes amid reports of slower sales at the iphone 15 and increased competition from huawei. ed: it is tech week --caroline: it is tech week and we will sit with participants from everywhere ventures. amazon -- watching shares of amazon, jeff bezos regains his spot as the second richest person in the world. he is now worth 156 -- 150 $6 billion. this is bloomberg. ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get he

it has fallen behind some of the leaders in the market, including tsmc and samsung. staff our executive editor for asia tech peter elstrom, joining us on this new foray, as they say. japanese prime minister fumio kishida has touted his lands for cuts and energy cities. our next guest joins us out of tokyo. isabel, what do we know about these rebates that the prime minister is planning? isabel: on friday night, kishida called in some of his senior executives and said we need to have tax cuts, i want you to think about the details of that. on sunday he had two by elections. in japan, one of them he lost, a seat that belongs to his party. then he gave his opening speech to the social parliament yesterday and reiterated the plan that he was going to offer tax breaks. he also said he will continue the energy subsidies that have already put in place and have been extended to the end of this year, now they are going to continue into the spring. what happens next is that the ruling party executives have to go into meetings and deciding exactly what form these tax breaks are

there were early reports from tsmc and samsung electronics.t adds another negative riskier in terms of what we are seeing out of china reportedly expanding its probe into the property sector to include financial institutions now. among those investigations according to the wall street journal report is the former head of the bank of china, one of the country's largest lenders. this is, for context, just coming a couple of days after china announced dimness plans to reinvigorate the economy. -- stimulus plans to reinvigorate the economy. that is not helping the hung saying after receipt trading resume after the lunch break. let's talk about japan because we have the renewed rout and global bonds putting upward pressure on the yields in the country. that is complicating the equation for the bank of japan so much so that bank of america sees a higher chance that it will tweak yield curve control when it meets next week. the base case increasing the ceiling on the 10 year yield to 1.5% from the current 1%. despite what we are seeing in the upward

. >> shares of the largest contractor in the world, tsmc higher, about 4% higher after posting better than feared earnings early this morning, and this comes even with the 25% drop in profit. on the earnings call, they said the chip making market is very close to a bottom and that they're seeing stabilization in pcs, personal computers, as well as smartphone demand. the company is seeing robust demand for chips like the ones used in the iphone 15 pros. you're seeing the stock up 4%. union pacific's third quarter profit dropped about 19% as the railroad hauled fewer shipments and costs remain high, but the company still posted an earnings beat. why? the company kept raising prices amid higher inflation. you're seeing shares almost 3% higher. competitor csx transportation will have earnings after the bell today in 40 minutes. >> thank you very much. >>> we're just getting started. up next, morgan stanley's ellen zentner joins us with her reaction to fed chair powell's speech today. how she's sizing up the recent ramp in treasury yields and talking about the u.s. economy heading into nex

shery: our samsung, sk hynix and tsmc direct competitors?get relative competitive edge given the japanese yen at 150. will that fade depending on boj policy? >> yes, going towards the bank of japan's ongoing policy errors which have needlessly weekend japanese currency and weakened the nation's purchasing power. also invited imported inflation of the country, so there are many aspects for why the policies are just wrong. look at yield differentials in the fact that bank of and is conceding that inflation could go down but will start picking up again. that is the new narrative that they introduced over the last few weeks and the other thing they said on friday as they're looking at credit unions and asking them to prepare for rising interest rates and risk management read all the indications are that bank of japan has. inflation wrong and they are trying to create an offramp. how much have exporters benefited and how much will that dissipate? the weaker yen has masked what has been going on in volume. volume of exports. we're seeing that in e

tsmc, another focus in the session today. we had earnings out yesterday.ntially, projecting revenue ahead of estimates here. predicting the worst could be over for the chip sector broadly. is supportive factor -- this supportive factor, not playing out just yet. the korean won, fairly flat against the greenback. we have seen pressure on the offshore yuan, looking close to the 735 level. that's really the state of play. so far risk off through the session. haidi: lots of news for investors to contend with this friday's session. we do have more to come on "daybreak: asia." this is bloomberg. ♪ ♪ explore endless design possibilities. ♪ to find your personal style. endless hardie® siding colors. textures and styles. it's possible. with james hardie™. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to na

across the board, we are seeing tsmc under pressure.ll strengthen the controls that already exist. graphics chips as well to chinese companies. we see that right now playing out. yvonne: china property, there was disappointment in the markets and we saw the mlf cut unchanged but there was a big cash injection that did not really help the market. property names, it looks like that gauge could be heading for the lowest since 2009, the bloomberg property gauge right now. not a lot of risk-taking to kick off the trading week. yields recovering a little bit this morning. this is bloomberg. ♪ rder from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com nice footwork. man, you're lucky, thatwatching live sportsst. never used to be this easy. now you can stream all your games like it's nothing. yes! [ cheers ] yeah! woho! running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g networ

tsmc says that's not the case right now.he recovery is under way and that's why you're seeing shares up 4%. >> over 4. >> yeah. >> thanks. kristina partsinevelos. >>> meantime the transports off the worst days since april but ump bucking the trend higher despite coming up with results that were short on revenues amid a broader decline in freight demand. more about the earnings movers you might veisd enacha msewh bk in 2. >>> welcome back. i'm leslie picker with your cnbc news update. trump attorney and co-defendant in his georgia election interference case sidney powell has pleaded guilty to charges stemming from trying to overturn trump's loss in the state. her plea on six misdemeanor charges is part of a deal with prosecutors and comes a day before she was supposed to go to trial along with attorney kenneth chess borrow. >>> a spokes person for jack bergman says the michigan representative is ready to run for speaker if his colleague jim jordan can't win the vote. the hardline representative jordan failed to win the gavel