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WE GET DEEPER, HARD TRAVEL CHEAPER, OUR CK LOTHES CHEAPER BECAUSE THERE ARE PEOPLE WORKING FOR STARVATION WAGES IN THIS COUNTRY AND OTHER COUNTRIES THAT ARE ACTUALLY SUBSIDIZING US. WE SHOULD BE SO EMBARRASSED AND ASHAMED. IT IS MY BELIEF THAT IN TO ACKNOWLEDGE THAT THE CURRENT IMPOVERISHMENT RELATED TO THIS APPROPRIATION OF THEIR LABOR, OF THEIR LAND, AND IT NEEDS REPAIR. >> WHEN YOU GO TO THE LINCOLN MEMORIAL THERE IS A GIANT STATUE OF HIM LOOKING DOWN AT YOU.
ON THE RIGHT, JUST AGAINST THE WALL, THAT IS THE LAST THING HE REALLY WROTE OR SPOKE BEFORE HE WAS ASSASSINATED. IT IS A SUMMARY OF WHAT THE CIVIL WAR IS ABOUT. WHEN YOU THINK ABOUT IT, WHAT HE IS SAYING IS, YES, THERE IS A MORAL REASON FOR THIS WAR IN THE ENDING OF SLAVERY.
BUT, WE ARE REALLY TALKING ABOUT OUR FUTURE AND OUR PAST, WHO WILL BE SUFFERING FROM THE SYSTEMS OF WORK WE HAVE CREATED AND THE SYSTEMS OF LABOR THAT LAY AT THE HEART OF THE WHOLE WAR. WHO DOES THE WORK? WHO WILL BENEFIT FROM THIS? WHO WILL SUFFER? A PART OF OUR ORIGINAL SIN. THE BONDSMAN 250 YEARS OF UNREQUITED TOIL SHALL BE SUNK. AND UNTIL EVERY DROP OF BLOOD DRAWN WITH THE LASH PAID BY ANOTHER DRAWN BY THE SWORD. AS WAS SAID 3000 YEARS AGO, SO STILL IT MUST BE SAID, THE JUDGMENT OF THE LORD, TRUE AND RIGHTEOUS ALTOGETHER. WE DESERVE WHAT WE ARE GETTING.
AND I FIND IT THAT IN SOME SENSE , THE BRINGING TOGETHER OF EVERY STRAND OF AMERICAN HISTORY. OUT OF THE CONTRADICTIONS WE STARTED STARTER OUR NATION WITH. A SOCIETY SUPPOSEDLY DEDICATED TO DEMOCRACY, TO LIFE, LIBERTY AND THE PURSUIT OF HAPPYNESS. THAT WAS INCORPORATED INTO ITS VERY CONSTITUTION, THE INEQUALITIES. THERE ARE CERTAIN CONDITIONS
THAT ARE RELEGATED TO THE POOR. SOME PEOPLE IN SOME SENSE ARE STRUCTURALLY CHOSEN TO BEAR THE BURDENS OF THE WORLD WE CREATE. >> YOU DON'T HAVE TO GET RID OF POVERTY IN ORDER TO CREATE THE OPPORTUNITY FOR HEALTH. I WISH WE COULD. BUT PEOPLE WHO ARE POOR CAN STILL HAVE THE OPPORTUNITY FOR HEALTH. WE NEEDED TO STOP THINKING ABOUT THIS IDEA THAT WE CAN GET IN OUR ENCLAVES IF WE ARE WEALTHY AND PROTECT OUR HEALTH WITHIN THOSE ENCLAVES AND KEEP OUT THE REST OF THE WORLD. IF ANYTHING HAS SHOWN US THAT WE ARE ALL INTERCONNECTED, IT IS A HIGHLY CONTAGIOUS VIRUS.
>> WHEN COVID HAPPENED, PEOPLE SAID, O MY GOD, A PANDEMIC? WE HAVE NOT HAD A PANDEMIC SINCE 1918. WHY DID WE SAY THAT? THE HIV PANDEMIC IS STILL GOING ON. THE CHOLERA PANDEMIC IS STILL GOING ON.
ALL OF THE DISEASES WE HAVE FORGOTTEN ABOUT IN THE WEALTH, THE WEALTHY WEST. IT GETS GHETTO-IZED AND BECOME SOMETHING THAT ONLY AFFECTS A VERY POOR PEOPLE. GO BACK TO MALARIA. WE HAVE HUNDREDS OF THOUSANDS OF PEOPLE, OF BABIES THAT GET SICK AND DIE FROM MALARIA EVERY YEAR. WE KNOW HOW TO CURE TUBERCULOSIS.
BUT IT'S A HUGE PROBLEM IN PARTS OF THE WORLD. IT IS THAT EVEN SOMETHING WE TALK ABOUT? >> COVID IS OVERSHADOWING OTHER SERVICES. TAKE TUBERCULOSIS. WE HAVE MORE CASES NOW BECAUSE SERVICES HAVE BEEN DISRUPTED. HIV IS THE SAME. OF COURSE, SINCE THE PANDEMIC
STARTED WE HAVE TRIED TO KEEP A BALANCE, BUT IT WAS VERY, VERY DIFFICULT BECAUSE ALL EYES WERE ON COVID. >> IS A VIRUSES AND HOW DISRUPTIVE THEY CAN BE IS NOT THEORETICAL ANYMORE. WE HAVE SEEN IT. IT'S REALISTIC. WE NEED TO START PREPARING FOR FUTURE PANDEMICS NOW. OR WE RISK A MUCH WORSE FUTURE FOR US AND OUR CHILDREN.
>> WHEN COVID HAPPENED, WE THOUGHT OF IT AS AN INVASION. THIS IS SOMETHING COMING FROM AFAR BEING THRUST UPON US AND WE ARE JUST PASSIVE VICTIMS. WHAT DO YOU DO IF YOU ARE A PASSIVE VICTIM AND BEING INVADED? YOU HAVE TO STRIKE BACK. WE DID NOT HAVE THE VACCINES AT
THE BEGINNING. BUT WE SET CLOSE THE BORDERS AND DON'T LET PEOPLE FROM TRYING IN. THAT WILL PROTECT US. WE HAVE TO KEEP INVADERS AT BAY. BUT WE WERE CREATING
OPPORTUNITIES FOR ANIMALS WITH CORONAVIRUSES TO MOVE INTO HUMANS AND FOR HUMANS TO CARRY THAT AROUND THE PLANET. AND THEN TO RUB SHOULDERS WITH SO MANY OTHER PEOPLE SO IT SPREADS EXPLOSIVELY. IT IS A COLONIAL CONQUEST. >> THE FATE OF THE PLANET HAS BEEN PROFOUNDLY INFLUENCED BY OUR SPECIES. THINGS LIKE CLIMATE CHANGE, DEFORESTATION AND HABITAT LOSS CRUSHED THE WORLD'S WILDLIFE INTO AN EVER TIGHTER FIST AND THEN VIRUSES COME POURING OUT. OUR FATE AS HUMANS WILL BE DEEPLY INFLUENCED BY THE RISE AND REEMERGENCE OF VIRAL DISEASES.
COVID WAS JUST PART OF THAT. IT'S NOT GOING TO BE THE LAST SUCH THREAT WE FACE. >> WE HAVE AMNESIA ABOUT THIS LARGER PICTURE. WE IMAGINED OURSELVES LIVING IN A SANITIZED PLACE IN WHICH WE ARE THE DOMINANT SPECIES WHO CAN CONTROL EVERY ASPECT OF IT. WE ARE VULNERABLE TO NATURE AND OTHER ANIMALS ANYMORE.
THAT'S THE FANTASY WE LIVE IN. BUT WE CAN'T THINK OF OUR HEALTH AS ISOLATED FROM THE REST OF THE PLANET. WE HAVE TO THINK ABOUT THAT WHOLE SYSTEM. NOT JUST THE INDIVIDUAL. NOT JUST ONE SOCIETY PLUCKED IN ISOLATION FROM THE REST OF IT. IT IS ALL CONNECTED.
>> I HAD AN INTERVIEW IN 2019. THE FIRST QUESTION US -- WAS, WHAT KEEPS YOU UP AT NIGHT? I SAID, I AM REALLY WORRIED ABOUT ANY PANDEMIC. AND THAT KEPT ME UP NIGHT THEN. AND IT STILL KEEPS ME UP AT NIGHT NOW BECAUSE WE ARE NOT YET PREPARED. DURING THIS PANDEMIC WE HAVE FAILED IN MANY THINGS.
MANY COUNTRIES ARE HAVING PROBLEMS WITH SHARING DATA. WE DID NOT HAVE THE KIND OF GLOBAL OBLIGATION TO HELP EACH OTHER TO FIGHT THE PANDEMIC. I WOULD LIKE TO HAVE THE WORLD AGREED TO COMMON PRINCIPLES, RESPECT THEM, AND PREPARE FOR THE NEXT PANDEMIC. EVERYBODY WAS TAKEN HOSTAGE BECAUSE OF THIS VIRUS.
WE LOST THREE YEARS OF OUR LIVES. TO REALLY PREVENT IT THE SAME THING FROM HAPPENING, THEN WE NEED TO REALLY GROW UP AND HAVE A COMMON AGENDA. THAT IS JUST FROM THE COMING TOGETHER. -- THAT IS JUST FROM HUMANITY COMING TOGETHER. >> WE ARE REALLY GOOD HERE ABOUT HAVING OUR PARADES. BUT WE WON'T HELP OUR NEIGHBOR.
WE WON'T LOOK BEYOND WHAT IT WILL TAKE TO IMPROVE OUR COMMUNITIES. PEOPLE SUFFERING FROM ADDICTION IS A PUBLIC HEALTH ISSUE. IT IMPACTS EVERYTHING. ABOUT OUR FUTURE.
AND OUR ABILITY TO MOVE FORWARD. I MEAN, WHAT ARE WE DOING? I THINK WE HAVE TO REDIRECT VALUES. >> YOU SIMPLY CAN'T PRACTICE PUBLIC HEALTH IN AN INDIVIDUALISTIC SOCIETY. YOU HAVE TO HAVE SOME SENSE OF COMMUNITY FOR EFFECTIVE PUBLIC HEALTH. >> PUBLIC HEALTH SHOULD BE ONE OF HUMANITY'S CROWNING ACHIEVEMENTS. NOT JUST BECAUSE OF THE CLEAN AIR AND WATER WE ENJOY OR THE DEFEAT OF SPECIFIC DISEASES.
IT'S ABOUT ACTING FOR THE COLLECTIVE INTEREST AND RISING ABOVE OUR BASE INDIVIDUALISTIC TENDENCIES. >> A LOT OF PEOPLE IN THIS COUNTY DON'T LIKE GOVERNMENT INTERFERENCE. THEY MOVED IT DOWN HERE FOR A REASON. THEY ARE VERY RESISTANT WHEN GOVERNMENT TELLS THEM THEY HAVE TO. >> WE HAVE BEEN REPEATEDLY PUSHED AWAY FROM THAT KIND OF COLLECTIVE THINKING TOWARD THE MUCH MORE INDIVIDUALISTIC FORM OF RISK ANALYSIS.
I THINK BECAUSE OF THAT, WE LOST THE WAY. >> THE KIND OF ANGER UNLEASHED DURING COVID TOWARDS AUTHORITY WAS SOMETHING UNANTICIPATED. >> SHE DOES NOT LISTEN TO WE THE PEOPLE. >> SHE NEEDS TO BE FIRED.
>> OVER MASKING AND VACCINATION. >> HOW MANY OF YOU HAVE HAD PERSONAL THREATS AGAINST YOU? >> A PERSON POSTED SOMETHING TO THE EFFECT OF [EXPLETIVE] HER, LET'S START SHOOTING. >> I HAD COLLEAGUES RETIRE EARLY. I HAVE HAD THEM SAY I HAVE HAD ENOUGH I CAN'T TAKE THIS ANYMORE.
>> 56% OF THE GOVERNMENT OF PUBLIC HEALTH WORKFORCE HAD AT LEAST ONE SYMPTOM OF PTSD AND 26% HAVE THREE OR MORE. IT IS A WORKFORCE THAT HAS BEEN BEATEN AND ABUSED. IT IS LIKE PUBLIC HEALTH VIETNAM. ONCE I STARTED TO HEAR ABOUT HOW OTHER COLLEAGUES WORKING IN PUBLIC HEALTH HAD THEIR CARS BROKEN INTO, HAD BEEN FOLLOWED HOME, HAD ROCS THROWN THROUGH THE BUILDING.
>> WE ARE LOSING INSTITUTIONAL KNOWLEDGE. NEXT TIME WE HAVE A PANDEMIC EVERYBODY WILL BE GREEN AND WE WILL BE STARTING FROM SCRATCH. >> ONE THING THAT IS INSPIRING IS WE ARE SEEING RECORD APPLICATIONS TO SCHOOLS OF PUBLIC HEALTH. WE ARE SEEING STUDENTS MORE MOTIVATED. I THINK THEY LOOK AROUND DURING THE PANDEMIC AND SAY, SOMETHING DID NOT WORK HERE, HOW CAN I BE PART OF THE SOLUTION? >> THERE IS A MAN BY THE NAME OF HARLAN CLEVELAND WHO HAD BEEN IN POLITICAL SCIENCE ALL HIS LIFE AND TOWARDS THE END OF HIS LIFE BECAME INTERESTED IN GLOBAL HEALTH. HE WAS ALWAYS DUMBFOUNDED BY THE AUDACITY OF PEOPLE IN GLOBAL HEALTH.
HE SAID, THE FUEL OF GLOBAL HEALTH IS UNWARRANTED OPTIMISM. 60 YEARS AGO I COULD NOT FIND PEOPLE INTERESTED IN GLOBAL HEALTH. NOW, EVERY UNIVERSITY FINDS THAT THIS IS THE WAY TO ATTRACT NEW STUDENTS. >> MY FOCUS ORIGINALLY HAS BEEN ON WOMEN'S SEXUAL AND REPRODUCTIVE HEALTH. WITH THE PANDEMIC, THOUGH, MY INTEREST HAVE BROUGHT AN END. I HOPE TO WORK ON A MORE GLOBAL
LEVEL. THERE ARE VACCINE DISPARITIES ALL OVER THE WORLD. I WANT TO WORK ON MANY DIFFERENT ASPECTS LIKE HOW CAN WE REDUCE CARDIOVASCULAR DISEASE AND CANCER AND OTHER DISEASES THAT ARE SO PREVALENT MOBILITY? >> YOU KIND OF HAVE TO CREATE YOUR OWN POSITION WHEN IT COMES TO PUBLIC HEALTH. THERE ARE THINGS THAT I HAVE LIVED THROUGH AND SEEN WITH RESPECT TO CHILDREN THAT I JUST REALLY WANT TO MAKE AN IMPACT ON. I WORKED AT A HOSPITAL IN SOUTH AFRICA WHERE I SIGNED A LOT OF MONITORS IN CASES. THAT WAS REALLY HEARTBREAKING. -- MALNUTRITION CASES. THAT WAS REALLY HEARTBREAKING.
I STRUGGLED WITH THAT A LOT. I WANT TO PARTNER WITH AN ORGANIZATION OR START MY OWN ORGANIZATION. CHILDREN ARE VULNERABLE. I WANT TO BE A VOICE FOR THEM.
EVERYBODY SHOULD HAVE ACCESS TO FOOD. >> I HAVE GREAT HOPE WHEN I SEE MY STUDENTS BECAUSE THEY BREAK DOWN THE SILOS. WE HAVE STUDENTS OF PUBLIC HEALTH THAT ALSO HAVE DEGREES IN THEOLOGY OR ANTHROPOLOGY.
THESE PEOPLE WILL DO THINGS THAT ARE BETTER THAN ANYTHING WE HAVE EVER DONE IN THE PAST. >> IT IS EASY FOR PEOPLE TO THROW THEIR HANDS UP IN A BIG PROBLEM AND SAY, THIS IS BIGGER THAN ME AND I CAN'T DO ANYTHING ABOUT IT. YOU THROW YOUR WHOLE LIFE INTO IT AND MAYBE YOU CAN CHIP AWAY AT IT. THAT HAS BEEN MY MENTALITY. I AM WORKING IN THE HUMANITARIAN WORLD. I SEE SO MANY PROBLEMS THAT CAN BE FIXED.
>> I THINK IT WOULD BE VERY EASY FOR PEOPLE TO COME TO THE CONCLUSION AFTER THE CORONAVIRUS PANDEMIC THAT WE SHOULD KEEP POLITICIANS OUT OF PUBLIC HEALTH . THAT'S THE WRONG CONCLUSION. BECAUSE, PUBLIC HEALTH IS DEPENDENT ON THE POLITICIANS APPROPRIATING MONEY. >> EVEN DURING THE PANDEMIC YOU WOULD GET THE SENSE THAT OUR STATE LEGISLATORS DID NOT LIKE PUBLIC HEALTH. BUT, THERE WAS NOT A SINGLE LEGISLATOR AND THAT WHEN I MET WITH THEM ONE-ON-ONE THAT WAS NOT ACTUALLY PASSIONATE ABOUT SOMETHING IN PUBLIC HEALTH. AS THEY DID NOT KNOW IT WAS PUBLIC HEALTH. THIS LEGISLATOR WAS INTERESTED
IN AGING AND WHAT WAS HAPPENING IN NURSING HOMES IN HIS COMMUNITY AND THE NEXT WAS INTERESTED IN HEALTH OUTCOMES FOR CHILDREN. WE HAD IT SUFFERED FROM AN OPIATE EPIDEMIC. WE WERE SUFFERING FROM DISEASES OF DESPAIR. LEGISLATORS DID NOT KNOW IT WAS
SOMETHING PUBLIC HEALTH DEAD. >> WE CAN GET PUBLIC HEALTH PEOPLE GOING INTO POLITICS. I OFTEN SAY TO STUDENTS, WHEN WE GET THE SAME A NUMBER OF PUBLIC HEALTH PEOPLE IN CONGRESS AS WE HAVE LAWYERS, WE HAVE A CHANCE. >> THE CONSEQUENCES OF THE PANDEMIC ARE VERY MUCH STILL WITH US. THROUGHOUT THE PANDEMIC, MANY
OF US HAVE LONGED TO RETURN TO NORMAL. WE WANTED TO BOUNCE BACK TO LIFE AS IT WAS BEFORE THE CORONAVIRUS STARTED KNOCKING ON OUR DOOR. YET, NORMAL LED TO THIS. NORMAL WAS NOT A HALCYON ERA OF WONDERFUL HEALTH. NORMAL WAS A SET OF BASELINE CONDITIONS THAT MADE US VULNERABLE.
>> ARE A FAILURE IN RESPONSE TO COVID LEAD TO A NEW ENDEMIC VIRUS. THAT WAS A FAILURE OF US NOT BEING PREPARED AND NOT BEING ABLE TO RESPOND DECISIVELY. NOW IT'S HERE TO STAY.
>> VERY EARLY ON IN THE PANDEMIC, THIS TEXTBOOK UNDERSTANDING OF COVID SOMEHOW ACCRUED OUT OF NOWHERE, THAT IT WAS EITHER A DISEASE YOU GOT IT OVER WITH IN TWO WEEKS OR THAT LANDED YOU ON A VENTILATOR. THAT'S COMPLETELY LEFT BEHIND ALL OF THE PEOPLE IN THE VAST INTERNMENT IN THE MIDDLE -- HINTERLAND IN THE MIDDLE AND EITHER DIED NOR RECOVERED AND THEN DIDN'T RECOVER FOR MONTHS OR YEARS. THE CDC ESTIMATES 15 MILLION PEOPLE IN THIS COUNTRY ALONE HAVE LONG COVID. ONE OF THE MOST COMMON SYMPTOMS OF LONG COVID IS CRUSHING FATIGUE. PEOPLE TALK ABOUT FEELING AS IF ALL OF THEIR JOINTS HAVE BEEN WEIGHED DOWN WITH LEAD. THEY MIGHT HAVE A COGNITIVE
FATIGUE WERE EVEN APPS OF THINKING CAN BE PAINFUL AND IMPOSSIBLE. I THINK THAT LONG COVID POSES A MASSIVE INCONVENIENCE TO THOSE THAT WOULD WANT TO PLAY WITH THAT THE PANDEMIC IS OVER. TO IGNORE COVID, YOU HAVE TO IGNORE THE PEOPLE THAT I MUST LIVE WITH COVID NOW. IT IS VERY EASY AND REASONABLE TO BE CYNICAL. WE MADE MANY MISTAKES IN THE
PANDEMIC AND KEPT ON MAKING THE SAME MISTAKES AGAIN AND AGAIN. I WOULD ARGUE WE ARE IN THE SAME STATE OF PREPAREDNESS THAT WE FACED GOING INTO COVID. THAT SAID, I THINK THAT NIHILISM IS A LUXURY WE CANNOT AFFORD. THERE IS ALWAYS THE POSSIBILITY TO STRENGTHEN PUBLIC HEALTH, TO WORK BETTER AS A COMMUNITY. I THINK THAT THE SEEDS OF THE CHANGES HAVE, INDEED, BEEN PLANTED. AT TIMES, WHEN PEOPLE IN POWER HAVE FAILED THEIR SOCIETIES, ORDINARY GROUPS OF PEOPLE HAVE RISEN UP AND TAKEN THE MANTLE OF PUBLIC HEALTH ONTO THEIR OWN SHOULDERS AND FOUGHT FOR THEIR OWN COMMUNITIES.
>> WE IN PUBLIC HEALTH HAVE TO STOP BEING AFRAID OF GETTING OUT OF OUR LANE. TIME, NOT JUST FOR THE PANDEMIC, BUT BEYOND. THEY ARE HEROES.
>> THE BROAD SWEEP OF THE LAST YEARS THERE IS SO MUCH CAUSE FOR OPTIMISM. IT HAS BEEN A MIRACULOUS SET OF ADVANCES GEARED -- A SET OF ADVANCES. IN OUR HEALTH. BUT, THAT DOES NOT MEAN WE HAVE INTIMIDATED ALL OF THE PROBLEMS. IT DOES NOT MEAN NEW PROBLEMS WON'T ARISE. SO, THE WORK IS NOT TO SIT BACK AND SAY, LOOK AT THE PROGRESS.
THE WORK IS TO THAT WE ARE CAPABLE OF SOLVING THE PROBLEMS IF WE PUT OUR MINDS TO IT. >> WE ALL WANT TO HAVE OUR FAMILY THAT CAN THRIVE. IT IS SOMETHING WE CAN DO. IT IS OUR WAKE-UP CALL. IT IS OUR CHANCE TO REBUILD. BUT EACH OF OUR CITIZENS KNOW THEIR LIVES MATTER.
AND THAT THEY CAN CONTRIBUTE. >> WE, AS HUMAN BEINGS, NEED TO UNDERSTAND OUR ONEBENESS. >> YOU CAN'T BE CLOSED OFF TO PEOPLE. WE ARE ONE BIG COMMUNITY. PUBLIC HEALTH, IT IS SOMETHING YOU CANNOT SEE THAT'S AN INTEGRAL PART OF SOCIETY.
IT'S LIKE THE AIR WE BREATHE. WITHOUT IT, WE CAN LIVE. DASHCAM LIVES. ANNABELLE: YOU ARE WATCHING "THE ASIA TRADE." A BIG FOCUS ON TECH GIVEN ALL THE EARNINGS COMING THROUGH. A POSTDOC IS SLIPPING IN LATE TRADE. THE COMPANY ACTUALLY SAW SALES BEATING AT THE DUBLIN LEVEL, BUT DRILLING DOWN, IT WAS A BIG FOCUS ON HOW THEY ARE DOING IN THE CHINESE MARKET.
THEY ARE FACING A LOT OF COMPETITION THERE FROM LOCAL PLAYERS LIKE SHAMI AND HUAWEI THAT ARE STARTING TO GET INTO THEIR MARKET SHARE. THAT IS, OR IN THE TRADE REACTION. AMAZON IS ANOTHER , FORECASTING ANOTHER STRONG QUARTER AND STRONG DEMAND FOR NWS, CLOUD COMPUTING DEMAND STAYED STRONG.
INTEL, YOU CAN SEE THE BIG JUMP. THIS COMPANY IS IN THE MIDST OF VERY BIG STEP FOR THE EFFORT. FINALLY WE START TO SEE A BIT OF OPTIMISM COMING THROUGH. SHERY: WE ACTUALLY HEARD FROM THE INTEL CEO PAT GELSINGER, HE SAYS THE UPTAKE OF THEIR AIX AND LITTER HAS BEEN SLOWER THAN HOPED DUE TO THESE ISSUES. HE TOLD US MORE ABOUT WHAT HE
CALLED THE MOST AUDACIOUS REBUILDING PLAN IN CORPORATE HISTORY. >> WE WORKED VERY HARD THIS QUARTER TO GET THIS DONE. THE PEOPLE ACTIONS, THE RESTRUCTURING CHARGES, LARGELY FINISH THIS QUARTER. IT WAS A CHALLENGING QUARTER
THAT WAY, BUT TO ALSO DELIVER BETTER-THAN-EXPECTED RESULTS IF WE ELIMINATE THOSE ONE-TIME CHARGES, AND TO TAKE OUR GUIDANCE OF FOUR Q4, I AM PART OF OUR TEAM BE ABLE TO DO BOTH THESE QUARTER. SOME OF THE MOST DIFFICULT RESTRUCTURING MAY BE IN THE HISTORY OF INTEL SINCE THE MICROPROCESSOR DECISION ALMOST FOUR YEARS AGO. GETTING THAT DONE AND STILL GETTING RESULTS AND TAKING THE GUIDE OUT, THIS IS A VERY SIGNIFICANT QUARTER FOR OUR TEAM TO EXECUTE. >> AWAY FROM THE FINANCIALS AND NUMBERS, COULD YOU TALK ABOUT THE PRODUCT BUSINESS AND THE FOUNDRY BUSINESS THAT GIVE YOU SOME CONFIDENCE IN THAT GUIDE? >> IF WE TAKE IT APART A BIT, THE CLIENT BUSINESS, WE HAVE LAUNCHED OUR PRODUCTS, A SECOND GENERATION OF AI PC. VERY SOLID.
WE WILL BE LAUNCHING THE COMMERCIAL VERSION OF THAT INTO A GOOD MARKET, WE BELIEVE, NEXT YEAR FOR A WINDOWS REFRESH, A CORPORATE REFRESH CYCLE, AND WE START TO SEE MORE STRENGTH IN THE AI PC CATEGORY OVERALL WITH A STRONG SET OF USE CASES. BRINGING NEW SOFTWARE INTO THE MARKETPLACE. WE FEEL GOOD ABOUT THE BUSINESS. DATA CENTER QUARTER-ON-QUARTER, A BIT BETTER THAN PEOPLE FORECAST. AND A STRONGER PRODUCT LINE WITH OUR NEW PRODUCTS STARTING TO RAMP.
AND FINALLY ON THE INTEL FOUNDRY QUARTER-ON-QUARTER GROWTH IN THAT AREA, AND A STRONG PIPELINE OF EXTERNAL CUSTOMERS. WE ARE NOT AMAZON AND TWO OTHER 18A ADDITIONAL AND ADVANCED PACKAGING CUSTOMERS. WE ARE STARTING TO SEE THAT BUSINESS COME TO LIFE. ED: YOUR AIX LIMITER DIDN'T GET THE TRACTION HE HOPED, AND YOU WOULD NOT BE MAKING ABOUT $500 MILLION IN SALES TARGET FOR THIS FISCAL YEAR. WHY?
IS IT A USE CASE ISSUE, THAT THE IT IS THE END OF OR IS IT SOMETHING ELSE SOMETHING ELSE? >> TWO FACTORS. ONE IS THAT WE HAVE THE GAUIDI III COMING OUT. SECOND IS THE SOFTWARE. THE AI WORLD HAS MOVED VERY
RAPIDLY, INNOVATING VERY QUICKLY. AND THE ROBUSTNESS AND COMPLETENESS OF THE GAUDI SOFTWARE STACK HASN'T BEEN GREAT. IT'S NOT A FULL REPROGRAMMABLE GPU, SO IT MAKES THE SOFTWARE OPTIMIZATIONS A BIT MORE DIFFICULT. OBVIOUSLY AS WE GET MORE ABOUT
RUNNING, BUT SECONDLY THEN, IT IS ALSO TO MOVE TO A COMPLETE GPU CAPABILITY, WHICH WE WILL BE DOING IN TIME. THAT DEVELOPMENT EFFORT IS ALSO WELL UNDERWAY. WE FEEL WE ARE IN A SOLID POSITION.
OBVIOUSLY, THAT HAVE BEEN RUMORS AND CHURN IN THE INDUSTRY AND I THINK ALL OF THAT DEBT INDICATES HOW IMPORTANT INTEL IS TO THE INDUSTRY STRUCTURE AND SEMICONDUCTORS AND HOW IMPORTANT THOSE SUPPLY CHAINS ARE FOR THE WORLD. WE DON'T VIEW ANY OF THESE RUMORS AS PARTICULARLY MERRY TEST. WE LAID OUT A STRATEGY AND REAFFIRMED IT WITH OUR BOARD OF DIRECTORS. OBVIOUSLY AS WE HAVE TAKEN THESE STEPS THIS QUARTER IN RESTRUCTURING AND GETTING COSTS WHERE THEY NEED TO BE, WE HAVE THE CAPACITY TO GO ON THE JOURNEY THAT WE HAVE LAID OUT TO PRODUCE A PROFITABILITY AND RESULTS AND SHAREHOLDER RETURNS. ANNABELLE: THAT WAS INTEL CEO PAT GELSINGER, SPEAKING WITH BLOOMBERG TECHNOLOGY GO ANCHOR, ED LUDLOW. LET'S BRING IN AND MARIBEL
LOPEZ, FOUNDER AND PRINCIPAL ANALYST AT LOPEZ RESEARCH. I AM CURIOUS ABOUT YOUR REACTION ON THE INTEL SHARE PRICE TODAY. IS IT TELLING YOU THAT THE TURNAROUND PLAN IS TAKING SHAPE, THAT THE INVESTORS BELIEVE THAT, OR THE NUMBERS JUST WEREN'T AS BAD AS WE HAVE SEEN IN LAST QUARTERS? MARIBEL: THE TURNAROUND PLAN WAS SOLID. THERE WAS A SIGNIFICANT ISSUE WITH THE TURNAROUND PLAN LAST QUARTER THAT PUT IN QUESTION THIS QUARTER.
WE SAW SOME REALLY STRONG GUIDANCE AROUND WHAT WILL HAPPEN WITH THE AI PC, WHICH IS IMPORTANT TO THEM AND A VERY COMPETITIVE MARKET FOR INTEL. WE ALSO SAW WONDERFUL NEWS FROM NWS ON THE FOUNDRY -- FROM NWS ON THE FOUNDRY. NWS INVESTING IN INTEL ON THE FOUNDRY BUSINESS SHOWS THEY HAVE DONE SOME TESTING AND HAVE CONFIDENCE THAT THE FOUNDRY BUSINESS COULD WORK FOR THEM. PUT THOSE TWO THINGS TOGETHER, WE ARE STARTING TO SEE A PATH WHERE THERE COULD BE A RETURN OF INTEL INTO THE MARKET IN THE MORE MEANINGFUL WAY.
SO LESS DISTRACTING NEWS, MORE OPTIMISM ABOUT THE FUTURE OPPORTUNITIES INTEL HAS OVER THE COMING THREE YEARS. ANNABELLE: WHICH PART ARE YOU MORE OPTIMISTIC ABOUT? WE JUST HEARD ABOUT THE OUTLOOK FOR THE GAUDI 3, FOR INSTANCE. MARIBEL: IT'S A PRETTY GOOD REVENUE STREAM. THE GPU MARKET IS A DIFFICULT MARKET TO WRESTLE AWAY FROM NVIDIA. IF THE OPPORTUNITY THERE IS IF
YOU LOOK AT THE LONGER GAME, WHICH IS A YEAR OR MORE, WE ARE SEEING THAT ENTERPRISE BUYERS DON'T NECESSARILY NEED GPUS FOR EVERYTHING. THEY NEED A MIX OF CPUS AND GPUS, AND THIS IS WHERE INTEL HAS THE OPPORTUNITY TO ENTER INTO THE MARKET STRONG WIND UP BUYING ACTUALLY STARTS TO HAPPEN. WE ARE ALL DISCUSSING THE END MARKET IF IT IS HERE TODAY AND WE ARE REALLY AT THE BEGINNING OF IT. WE HAVE THE PRODUCT AND THE USE CASES. WE HAVE SEEN A LOT OF ACTIVITY IN THE DATA CENTER. BY THE DATA CENTER IS ONLY PART OF THE MARKET.
WHAT WE ARE OPTIMISTIC ABOUT IS THAT INTEL CAN COME IN ON THE BACK HALF AND GRAB SOME OF THAT ENTERPRISE VALUE THAT WILL BE COMING UP IN THE NEXT YEAR. SHERY: PEOPLE ARE FOCUSED ON APPLE INTELLIGENCE, BUT PERHAPS WITH A SLOW ROLLOUT OF THAT FEATURE, IT WOULD NOT LEAD TO A BOOST FOR THE IPHONE SPACE. BUT WERE YOU SURPRISED WITH WHAT YOU SAW IN THE SEPTEMBER QUARTER ? MARIBEL: I THINK THINK IN A LOT OF WAY, APPLE CONTINUES TO PULL THE RABBIT OUT OF A HAT. JUST WHEN YOU THINK IPHONE
SALES WILL BE, THEY COME BACK. WE SAW MORE WEAKNESS IN THE CHINESE MARKET THAN WE THOUGHT WE WOULD. THERE WAS EXPECTATION OF GROWTH. ON THE APPLE INTELLIGENCE SIDE,
PEOPLE OVER -- OVERPLAYED THAT. I THINK PEOPLE ARE GOOD TO HAVE A BETTER USER EXPERIENCE, OTHER THINGS THAT TYPICALLY SELL SMARTPHONES. TO CONTINUE TO HAVE DIGIT GROWTH IN THE SMARTPHONE MARKET IS ACTUALLY QUITE A FEAT TO MAINTAIN. BUT I THINK WE WERE VERY SURPRISED AND OPTIMISTIC ABOUT WHERE THAT WAS. AND THE SERVICES BUSINESS WAS QUITE INTERESTING FOR APPLE AS WELL. THAT SEEMS TO BE PROGRESSING AT A GOOD RATE. ANNABELLE:
20 THINK ABOUT THE CHINA MARKET IN PARTICULAR, IT WAS CLEAR SHE SAID THEY WERE FACING A WEAKER DEMAND THERE. DO YOU THINK APPLE NEEDS TO LIKE A PRODUCT THAT IS SPECIFIC FOR THE MAINLAND MARKET, AND IF SO, HOW WOULD THAT LOOK TO YOU? MARIBEL: THAT IS ABSOLUTELY NOT IN THE CARDS FOR APPLE. APPLE TENDS TO MAKE MORE UBIQUITOUS, HIGH-END, MIDRANGE , LOW-END, OVER TIME WE HAVE SEEN THEM PLAY IN THOSE THREE TIERS. I THINK THEY WILL TRY TO LEAN IN AND DO MORE IN INDIA. IT WILL BE A COMPETITIVE MARKET IN CHINA, WE EXPECT THAT TO CONTINUE. BUT OVER THE COURSE OF TIME I
THINK APPLE WILL HAVE A VERY SOLID SHOWING IN THE CHINESE MARKET. I THINK EVERYBODY IS VERY INTERESTED IN SEEING HOW WELL WILL WAIT -- WELL BECAUSE PRODUCTS PERFORM -- HUAWEI'S PRODUCTS PERFORM. BUT WE THINK APPLE WILL DO VERY WELL IN THE SPACE. SHERY: WE HAVE BEEN GETTING A LOT OF TECH EARNINGS, INCLUDING MICROSOFT AND META, SORT OF DISAPPOINTING IN THE OUTLOOK. WHAT DO YOU MAKE OF THE BROADER TREND WHEN IT COMES TO AI REALLY IMPACTING THESE TECH COMPANIES', FUTURE EARNINGS AND BUSINESS PERFORMANCE GOING FORWARD? MARIBEL: THERE IS A BIT OF DISCONNECT AND DISILLUSIONMENT BETWEEN WHAT PEOPLE EXPECTED WITH THE AI MARKET AND WHERE WE ACTUALLY ARE. ONE OF THE THINGS YOU HAVE SEEN
HAPPENING IS THAT HAS BEEN A STRONG REVENUE, BUT THERE CONTINUES TO BE HEAVY, HEAVY CAPITAL INVESTMENT THAT HAS TO HAPPEN IN THE MARKET AND WILL CONTINUE, BECAUSE WE ARE NOT EVEN AT THE POINT WHERE WE ARE SEEING SIGNIFICANT AI DEMAND FROM ENTERPRISE CUSTOMERS. ONCE THAT HAPPENS AND RECEIVE MORE WORKFLOWS GOING TO THE CLOUD, THAT WILL HELP. SO THE CLOUD COMPUTING PROVIDERS ARE TRYING TO SAY, HEY, WE CONTINUE TO PUT OUT DOUBLE DIGIT, IN THE 20%, 30% GROWTH, WHICH IS PHENOMENAL WHEN YOU CONSIDER THE RUN. ALL THAT GROWTH IS BEING DRIVEN BY AI. BUT THEY WANT TO TEMPER EXPECTATIONS OF OTHER EARNINGS MIGHT LOOK LIKE OR WHAT THE CAPITAL PORTFOLIO MIGHT LOOK LIKE GOING FORWARD, BECAUSE THAT TRAINING IS STILL CONTINUING ON, AND THAT RENMINBI IS NOT GOING TO PACE EQUALLY WITH THE EXPERIENCE PROBABLY FOR SEVERAL QUARTERS -- THE REVENUE IS NOT GOING TO FACE UP WITH THE EXPENSE, PROBABLY FOR SEVERAL QUARTERS.
SHERY: MARIBEL LOPEZ, THANK YOU, FOUNDER OF RESEARCH FIRM LOPEZ RESEARCH. WE WOULD LIKE TO HEAR FROM ALL OF OUR VIEWERS. SO WE HAVE PUT TOGETHER THIS SHORT, ONLINE SURVEY. SCAN THE QR CODE ON YOUR SCREEN RIGHT NOW AND TELL US WHAT YOU WOULD LIKE TO SEE MORE ON BLOOMBERG TELEVISION, AND ANY OTHER SUGGESTIONS YOU MIGHT HAVE. THIS IS BLOOMBERG. ♪
SHERY: NOW TO THE U.S. ELECTION RACE WHERE DONALD TRUMP IS INSISTING IS THAT CLEAR FRONTRUNNER AND ON PACE FOR VICTORY, SETTING THE STAGE FOR OUTRAGE FROM HIS SUPPORTERS IF THE ELECTION DOES NOT BREAK IN HIS FAVOR. FOR MORE, LET'S BLOOMBERG'S MICHAEL SHEPARD. HOW LONG CAN THIS DRAG ON IF WE SEE A CONTESTED ELECTION? MICHAEL: THAT IS A GREAT QUESTION. BECAUSE WE ALL KNOW AND REMEMBER FROM 2020 HOW IT REALLY DRAG THROUGH EARLY JANUARY THAT YEAR AND CULMINATED IN THE CAPITOL INSURRECTION WHEN DONALD TRUMP'S SUPPORTERS, IN A LAST-DITCH BID TO TRY TO OVERTURN THE ELECTION RESULTS THAN FUELED BY CONSPIRACY THEORIES THAT HE IN FACT HAD WON, THEY ATTEMPTED TO RETAKE THE CAPITAL BY FORCE AND START THE PROCESS. SO ANYTHING GOES THIS YEAR. WE DO KNOW THAT THE FORMER
PRESIDENT AND HIS ALLIES ARE REALLY GEARING UP FOR A FIGHT, ESPECIALLY IF HE LOSES. IN THEY ARE TRYING TO LAY THE GROUNDWORK NOW BY SUGGESTING THAT HE IS MUCH FURTHER AHEAD IN THE POLLS AND IN EARLY VOTING THAN HE ACTUALLY IS . ANNABELLE: ONE OF THE MORE COLORFUL REMARKS FROM DONALD TRUMP IN THE THREE HOURS IS TALKING ABOUT PROTECTING WOMEN IS REELECTED, WHETHER THEY LIKE IT OR NOT. CAN YOU SHARE SOME CONTEXT ON THAT, AND ALSO THE RESPONSE FROM THE HARRIS CAMPAIGN? MICHAEL: GLAD YOU ASKED ABOUT THAT, BECAUSE THESE COMMENTS REALLY DID TAKE OFF TODAY.
WHAT WE HAVE TO DO IS LOOK AT HOW THE TWO CAMPAIGNS ARE APPROACHING FEMALE VOTERS IN THE CLOSING STAGES OF THE RACE. THE FORMER PRESIDENT IS TRYING TO REACH VOTERS ON THE LEVEL OF SECURITY AND CRIME. AND HE IS USING THE ARGUMENT THAT "I'LL PROTECT YOU, WHETHER YOU LIKE IT OR NOT," TO USE HIS WORDS, FROM CRIME AND FROM WHAT HE SEES AS MIGRANTS WHO ARE RESPONSIBLE FOR IT, EVEN THOUGH DATA SHOW THAT THEY ARE NO MORE RESPONSIBLE FOR IT THAN ANY OTHER DEMOGRAPHIC. THE HARRIS CAMPAIGN ON THE OTHER HAND, SEES IN THESE REMARKS FROM THE FORMER PRESIDENT YET ANOTHER OPENING TO TALK ABOUT ABORTION RATES AND ACCESS TO REPRODUCTIVE CARE. THESE WERE LIMITED BY THE SUPREME COURT THAT DONALD TRUMP HELPED PUT IN PLACE.
REMEMBER, HE APPOINTED THREE OF THE JUDGES ON THE SUPREME COURT, WHO ULTIMATELY OVERTURNED THE 50-YEAR ROE V. WADE STANDARD. THEN ON TUESDAY NIGHT, DURING A NATIONAL ADDRESS FROM THE ELLIPSE HERE IN DOWNTOWN WASHINGTON, THE VICE PRESIDENT POINTED TO THAT MOMENT AS ONE OF HER ARGUMENTS TO WOMEN, "I AM HEAR FROM -- FOR YOU AND I HEAR YOU AND I UNDERSTAND AND KNOW THAT THIS IS AN IMPORTANT ISSUE FOR YOU." THE CAMPAIGN OFFICIALS FOR THE HARRIS TEAM ARE SEEING STRONGER EARLY VOTING TURNOUT FOR WOMEN THAN FOR MEN, AND THEY ARE INTERPRETING THAT IS AN ADVANTAGE TO THEM. AND THEY ARE HOPING THAT THEY ARE GOING TO BE ABLE TO CONTINUE TO PLAY THIS POINT AND CARD WITH FEMALE VOTERS. IT'S A VERY TIGHT RACE, NECK AND NECK, INCLUDING IN OUR OWN BLOOMBERG MORNING CONSULT POLL OF THE SWING STATES THAT WILL DECIDE THE SELECTION -- THIS ELECTION. SHERY:
WE HAVE EARLY BALLOTS IN AND WE ARE A FEW DAYS AWAY FROM ELECTION NIGHT. HOW ARE ? MICHAEL: THEY LOOKING IT'S VERY HARD TO TELL FROM THE EARLY RESULTS. WE ARE NOT GETTING RESULTS OF THOSE, BUT WE CAN GET A SENSE OF WHO IS TURNING OUT. AND THE FORMER PRESIDENT IS POINTING TO A STRONGER THAN HISTORIC AVERAGES FOR REPUBLICANS IN EARLY VOTING. AND REMEMBER, DONALD TRUMP HAS NEVER BEEN A FAN OF MAIL-IN VOTING OR EARLY VOTING. HE HAS ONLY SAID HE LIKES PEOPLE SHOWING UP ON THE DAY.
BUT IN A RACE AS CLOSE AS THIS ONE, HE IS EXPRESSING OPENNESS TO HAVING VOTERS USE OTHER MEANS THAN JUST SHOWING UP ON THE DAY. AND PARTY OFFICIALS ARE ALSO BACKING HIM UP ON THAT. IT IS HARD TO SAY WHO IS GAINING AN UPPER HAND OR AN ADVANTAGE FROM THE EARLY TURNOUT. WE WILL FIND THAT OUT ONCE THE RESULTS START COMING IN.
AND THERE IS STILL A LOT OF VOTING AND A LOT OF BALLOTS TO BE CAST IN THIS RACE. TUESDAY NIGHT WILL CARRY INTO WEDNESDAY MORNING, AND THEREAFTER. WE ARE NOT EXPECTING AN OUTCOME TO BE DECLARED, DECIDED, OR CALLED FOR AT LEAST A DAY IF NOT LONGER, JUST GIVEN HOW CLOSE THE RACE IS, AND HOW CONTENTIOUS THE VOTING CODE WILL LIKELY BE . ANNABELLE: SOMETHING THAT COULD STRETCH ON
FOR QUITE SOME TIME. SENIOR EDITOR AT MICHAEL SHEPARD THERE. WE WILL HAVE MORE AHEAD ON "THE ASIA TRADE." THIS IS BLOOMBERG. ANNABELLE: WE ARE AN HOUR INTO THE AUSSIE SESSION.
TO THE ASX 200 IS DOWN 1% IN EARLY TRADE. WE SAW WEAKNESS OVERNIGHT. MIXED RESULTS IN TACH, BUT THAT FOCUS ON APPLE AND THE WEAKNESS IN THE CHINESE MARKET.
THE AUSSIE DOLLAR IS FRACTIONALLY UNDER PRESSURE. KEEPING A CLOSE WATCH ON WHAT IS HAPPENING WITH BOND YIELDS. WE ARE WATCHING FOR THE RESULTS OF THE 10 YEAR OPTION TO LATER TODAY. IN TERMS OF THE STOCK MARKET, WE ARE SEEING THE BIGGEST WEAKNESS, OR IN FINANCIALS. ONE OF THE MAIN ONES WHERE WATCHING IS SHARES OF MACQUARIE CORP., THEY ARE DOWN 5% AFTER THE FIRST HALF NET INCOME-BASED ESTIMATES FOR THE BANK. BLOOMBERG'S PAUL ALLEN IS
JOINING US. PAUL, WHAT EXACTLY WAS THAT THAT BROUGHT THE RESULTS? PAUL: IT WAS A REASONABLE PERFORMANCE FOR MOST OF THE UNITS AT MACQUARIE, BUT THE KEY ONES, COMMODITIES AND THE MARKET UNIT BOTH SAW THEIR PROFIT CONTRIBUTION WEAKER, COMMODITIES PARTICULARLY BECAUSE OF LOWER COMMODITY VOLATILITY AND REDUCED CREDIT ALSO WHICH SLOWED DOWN INVESTMENT-RELATED INCOME FOR MACQUARIE CAPITAL. THOSE TAILWINDS FROM DEALMAKING AND ENERGY SHOTS ALSO ABATED TO SOME EXTENT. THE HEADLINE NUMBERS WERE NOT TOO BAD, THERE WAS A 14% INCREASE ON THE YEAR NET INCOME, JUST OVER ONE BILLION.
THE DIVIDEND WAS ALSO UP A BIT, TWO POINT 60 AUSSIE DOLLARS. BUT THE ESTIMATE WAS FOR CLOSE TO THREE DOLLARS. THE SHARE PRICE HAS BEEN EXTENDED -- THE SHARE BUYBACK HAS BEEN EXTENDED BY 12 MONTHS. SO A MIXED SET OF NUMBERS, BUT WE ARE SEEING DECLINES FOR THE STOCK TODAY.
SHERY: SO WHAT ARE THEY EXPECTING FOR THE SECOND HALF? PAUL: MACQUARIE TYPICALLY DOESN'T PROVIDE SPECIFIC GUIDANCE. BUT WE HAVE A CAUTIOUS STANCE FROM MACQUARIE, A CONSERVATIVE APPROACH TO CAPITAL FUNDING AND LIQUIDITY. ALTHOUGH IT DOES SEE DEALER ACTIVITY STARTING TO RISE AS THE RATES CALL. WE HAVE MORE INSIGHT FROM BLOOMBERG INTELLIGENCE, IT IS FORECASTING A POSSIBLE 15% JUMP IN PROFIT IN FISCAL YEAR 2025 THANKS TO ITS DIVERSE REVENUE STREAMS IN BANKING AND ASSET MANAGEMENT. BLOOMBERG INTELLIGENCE PREDICTING A POSSIBLE FURTHER EXTENSION OF THAT SHARE BUYBACK. WE'LL MACQUARIE SHARES HITTING A RECORD LAST MONTH. THEY PULLED BACK A BIT FROM
THAT THE PAST WEEK OR SO, BUT ANALYSTS STILL LIKE THIS STOCK. ANNABELLE: THAT WAS PAUL ALLEN IN SYDNEY THERE. AS HE MENTIONED, WE ARE KEEPING A CLOSE WATCH SO FAR. THE ONLY DOLLAR IS BEING -- THE AUSSIE DOLLAR IS BEING WATCHED. THE BIGGEST ACCENTED IN THE
SESSION WILL COME DOWN TO THE 10 YEAR AUCTION TAKING PLACE IN AUSTRALIA, PLANNING TO SELL 800 MILLION AUSSIE DOLLARS, $526 MILLION. THAT IS THE FOCUS. EQUITIES ARE UNDER PRESSURE. NOT ONLY IS THE FINANCIALS WEIGHING IN, BUT BROADLY BIG TECH EARNINGS. NET READACROSS FROM WALL STREET HAVING ITS IMPACT. BUT THAT FOCUS ON TECH IS ALSO PART OF THE CORPORATE STORIES WE ARE TRACKING BECAUSE OPENAI IS ADDING A NEW SET OF CHAT FEATURES TO CHATGPT. IT WILL ALLOW USERS TO LOOK FOR INFORMATION AS THEY WOULD ON THE WEB, WITH ATTRIBUTION FROM NEWS PUBLISHERS AND OTHER DATA SOURCES. THE SERVICE WILL GO LIVE BEGINNING WITH PAID USERS THIS WEEK, WHILE FREE CUSTOMERS WILL HAVE TO WAIT A FEW MONTHS.
ALPHABET'S AUTONOMOUS DRIVING UNIT WAYMO IS BEING VALUED AT 45 BILLION DOLLARS, AFTER ITS LATEST ROUND OF FINANCING. WAYMO SAID LAST WEEK IT HAD RAISED $5.6 BILLION IN NEW CAPITAL. THE START OF THIS PART OF ALPHABET'S PORTFOLIO OF BUSINESSES. WAYMO IS PART OF A LARGE PACK OF COMPANIES PURSUING ROBOTAXI SERVICES IN THE U.S. FORD PLANS TO SHUT DOWN THE
MICHIGAN FACTORY THAT MAKES IT -- IT'S ELECTRIC PICKUP FACTORY. THE AUTOMAKER WILL BEGIN THE SHUTDOWN IN LATE NOVEMBER, WITH PLANS TO RESUME PRODUCTION IN JANUARY. WHILE FOR LIGHTNING SALES ARE UP THIS YEAR, THEY ARE SHORT OF FORD'S EXPECTATIONS.
SHERY: SOME OF THE STOCKS IT WILL BE LOOKING AT THE OPEN IN KOREA AND JAPAN, APPLE'S ASIA SUPPLIERS ARE IN FOCUS AFTER THE TECH GIANT REPORTED WEAKER SALES IN CHINA THAN ANTICIPATED LAST QUARTER. APPLE FALLING ON WHAT'S 2%. THOUGH WE ARE SEEING GAINS FOR AMAZON AND INTEL. KEEP AN EYE FOR ASIAN SUPPLIERS FOR INTEL AS THE CHIPMAKER. A FOURTH-QUARTER REVENUE FORECAST SLIGHTLY ABOVE ESTIMATES. PERHAPS RECLAIMING SOME LOST
MARKET SHARE, THAT IS THE OPTIMISM THAT WE ARE SEEING FROM INVESTORS. AS PAT GELSINGER CALLED THIS THE MOST AUDACIOUS NEW BUILDING PLAN IN CORPORATE HISTORY FOR HIS COMPANY. THE MARKET OPENS IN SEOUL AND TOKYO ARE NEXT. THIS IS BLOOMBERG. ♪
♪ SHERY: THIS IS "THE ASIA TRADE." WE ARE COUNTING DOWN TO ASIA'S MAJOR MARKET OPENS. AFTER SOME PRESSURE IN THE OVERNIGHT SESSION ON WALL STREET, THE FED'S PREFERRED GAUGE OF INFLATION AT THE LARGEST LEVEL SINCE APRIL, LEADING INVESTORS TO THINK THAT PERHAPS THE FED WILL NOT BE ABLE TO AGGRESSIVELY EASE. IN THE LATE TRADING SESSION PERHAPS A DIFFERENT PICTURE. ANNABELLE: IT HAS BEEN THAT FOCUS FROM BIG TECH. APPLE, INTEL AND AMAZON ALL
TELLING DIFFERENT THINGS. BECAUSE IT HAS BEEN THE STORY OF THE VIRGINS COMING ACROSS THE WEEK. SHERY: IESCO WE WILL SEE HOW THE TECH SECTOR IN ASIA OPENS. WE HAVE SEEN ALREADY BIG MOVES
IN THE CURRENCY SPACE WITH THE JAPANESE YEN SURGING AS MUCH AS 1% AT ONE POINT. STILL TALKING ABOUT THE DOWNSIDE PRESSURE, THAT HAS PLAGUED THE JAPANESE YEN. WE HAD THAT STORAGE ON THE BACK OF JAPAN. REALLY NOT DOING MUCH IN THE PREVIOUS SESSION. AT THE SAME TIME, GOVERNOR UEDA TALKING ABOUT HOW THE POLITICAL UNCERTAINTY IN JAPAN WILL NOT STOP HIM FROM HIKING RATES IS HIS FORECAST UNFOLDS. THE YEN IS THAT 150 LEVEL.
A BIT OF PRESSURE FOR THE NIKKEI AND THE TOPIX AS WE CONTINUE TO WATCH THE TECH SECTOR. ASIAN SUPPLIERS WILL BE KEY IN TODAY'S TRADING. LOOK AT HOW KOREA IS COMING ON LINE. ANOTHER TECH-HEAVY ECONOMY. SOUTH KOREA'S OCTOBER EXPORTS
ARE RAISING 4.6% YEAR ON YEAR. IMPORTS RAISING 1.7% YEAR ON YEAR AND THAT HAS LEFT A TRADE SURPLUS OF 3.2 BILLION DOLLARS, A BIT BELOW WHAT ANALYSTS EXPECTED. WE CONTINUE TO SEE VERY STRONG SHIPMENTS OF CHIPS FROM SOUTH KOREA. SO THAT EXPORT NUMBER IS REALLY
GIVING YOU A PICTURE WHEN IT COMES TO THE BROADER GLOBAL DEMAND IN THE TECH SECTOR. THE KOSPI CONTINUES, DOWN 0.7 PERCENT. THE KOREAN WON STRENGTHENING A BID. BUT REALLY THE KOREAN WON HAS BEEN TRADING IN THE NARROW RANGE GIVEN THAT WE HAVE A LOT OF BIG EVENTS COMING UP INCLUDING THE U.S. ELECTION, AND THE FOMC NEXT
WEEK. [LAUGHTER] ANNABELLE: THAT'S RIGHT, THIS WEEK IS BUSY. TODAY IN THE SESSION, IT IS THE FOCUS ON OUR EARNINGS. THE APPLE NUMBERS, IN PARTICULAR BECAUSE EVEN THE SUPPLIERS TO THE BUSINESS, MOSTLY UNDER PRESSURE.
TDK'S YET AND TRADED, BUT IT COULD OPEN TO THE DOWNSIDE. THE FOCUS ON APPLE, IPHONE SALES HELD UP SURPRISINGLY IN THE THIRD QUARTER AHEAD OF THE HOLIDAY SEASON. BUT IT WAS THE CHINA WEAKNESS THAT LED TO THE STOCK FALLING IN LATE TRADE. LET'S GET MORE WITH KEN WONG, BUT STRATEGIST AT EASTSPRING INVESTMENTS. HOW DO YOU THINK ABOUT THIS?
PERHAPS WE ARE AT A POINT WHERE SOME COMPANIES HAVE NOT FACTORED IN THE CHINA RISK JUST YET. THE ONES WHO ARE DEPENDENT ON CHINA FOR SALES, THEY COULD FACE NOT JUST OF WEAKER CONSUMER, BUT BRING THE RISING COMPETITION FROM LOCAL BRANDS. KEN: I THINK GIVEN WHERE SHARE PRICES HAVE GONE, THERE HAS BEEN A LOT OF EXPECTATIONS FOR STRONG GROWTH, BUT RIGHT NOW IN CHINA WE STILL HAVE AN OVERALL CONSUMER SENTIMENT WHICH REMAINS FAIRLY WEAK.
THIS IS ONE OF THE MAIN REASONS WHY THERE IS A LOT OF POLICIES BEING IMPLEMENTED AND INTRODUCED BY THE CENTRAL GOVERNMENT. IT HAS REALLY HELPED PICK UP OVERALL CONSUMPTION BECAUSE IT'S BEEN LAGGING. NOW WE ARE SEEING THAT IN TERMS OF THE NUMBERS, THEY SHOW THAT WEAKNESS DOESN'T JUST IMPACT THE OVERALL DOMESTIC ECONOMY, IT ALSO IMPACTS GLOBAL SUPPLIERS ARE ACTUALLY TRYING TO IMPORT AND HAVE MORE GOODS SOLD IN CHINA. ANNABELLE: AND OF COURSE WE MENTIONED THE U.S. ELECTION COMING UP NEXT WEEK,
AND ALSO THE BIG MEETING FOR POLICYMAKERS IN CHINA. AND WE HAVE TECH EARNINGS ON THE HORIZON. HOW ARE YOU LOOKING AT TRADING IN THIS MARKET? KEN: WE HAVE TO BE VERY CAREFUL.
WITH THE BIG EVENTS NEXT WEEK, THERE IS A LOT THAT EVERYBODY'S TRYING TO PRICE IN. YOU HAVE THE U.S. ELECTIONS, EVERYBODY TRYING TO PLACE IN WHETHER TRUMP OR HARRIS WILL WIN. THEN YOU HAVE THE BIG MEETING IN CHINA. EVERYONE IS EXPECTING FOR FURTHER POLICY TO BE ANNOUNCED TODAY THAT MOMENTUM WE HAVE BEEN SEEING IN THE CHINESE STOCK MARKET PLACE IN THE PAST SIX WEEKS OR SO. BUT LIKE YOU MENTIONED, WE HAVE
A LOT OF CHINESE TECH COMPANIES LIKE TENCENT, ALIBABA AND JD.COM REPORTING NUMBERS AS WELL. IT COULD BE VERY IMPORTANT. FOR THE INVESTORS WHO ARE KEYING IN TERMS OF LOOKING FOR STOCKS WHICH ARE TRADING BELOW THEIR INTRINSIC VALUE, WHERE THE MARKETS BUT ACTUALLY HAVE LOWER EXPECTATIONS, THOSE ARE COMPANIES TO LOOK AT BECAUSE WE COULD POTENTIALLY SEE MODEST SURPRISES IN A FEW COMPANIES NEXT WEEK IN TERMS OF PROVIDING RESULTS OF THAT BETTER-THAN-EXPECTED. SHERY: WHEN IT COMES TO THE U.S.
ELECTIONS AND WHAT WE CAN EXPECT FROM DONALD TRUMP, ARE THE MARKET BECOME MORE IMMUNE TO HIS TARIFF TALK? REMEMBER 2016? ANY TIME WE WOULD TALK ABOUT TARIFFS YOU WOULD SEE HUGE MARKET SWINGS. IT DOESN'T SEEM LIKE WE ARE GETTING THAT AS OF YET. COULD WE BE A LITTLE SAFER EVEN IF WE GET MORE OF THIS DEPENDING ON THE OUTCOME OF NOVEMBER 5? KEN: I THINK THAT EMOTION IS POTENTIALLY HISTORY NOT REPEATING ITSELF. I THINK INVESTORS ARE TRYING TO BANK ON THAT. WE DON'T KNOW, WHETHER TRUMP OR HARRIS WILL WIN. I THINK IT WILL BE MORE IMPORTANT TO SEE POST-ELECTIONS ESPECIALLY AROUND POLICIES, HOW THINGS WILL BE IMPACTED. EITHER CANDIDATE REALLY HASN'T
HAD A LOT OF SPECIFIC DETAILS WHEN IT COMES TO POLICIES. IN TERMS OF HOW IT COULD IMPACT COUNTRIES HERE IN ASIA AND CHINA IN PARTICULAR. SO I THINK A LOT OF INVESTORS ARE TRYING TO SPECULATE ON CERTAIN THINGS. BUT ULTIMATELY I THINK THEY ARE TRYING TO FIGURE OUT WHO WILL WIN THE ELECTIONS NEXT TUESDAY AND THEN FROM THERE, TO SEE WHAT TYPE OF POLICIES COULD HAVE AN IMPACT TO THIS PART OF THE WORLD. SHERY: ON TOP OF THAT WE HAVE CHINA'S TOP LEGISLATIVE BODY MEETING NEXT WEEK. HOW CLOSELY ARE YOU WATCHING SOME SPECIFIC POLICIES COMING OUT OF BEIJING THAT COULD AFFECT YOUR INVESTMENTS? KEN: IT WILL BE VERY IMPORTANT, BECAUSE A LOT OF TIMES, POST-MEETING, WE MIGHT GET 10 BITS HERE OR THERE, BUT WE ARE NOT EXPORTING A LOT TO BE ANNOUNCED IN THE NEXT WEEK OR SO. BUT IT IS OVER THE NEXT FEW
WEEKS, SPECIFICALLY WAITING TO COUNTER WHO WILL WIN THE ELECTIONS IN THE U.S., AND ALSO AT THE SAME TIME, ONCE THERE IS FIVE OR SIX WEEKS OF DATA, THEN POTENTIALLY THEY SEE WHETHER OR NOT AND WHAT TYPE OF POLICIES NEED TO BE HAD. CHINA STILL HAS THE GDP TARGET OF AROUND 5%. SO IF WE ARE NOT NEAR THAT, AND POTENTIALLY, A GOOD SEAT MORE POLICIES BEING IMPLEMENTED. ALSO WE ARE IN THAT STAGE WHERE, INVESTORS RIGHT NOW YOU ARE TAKING A BIT OF A WAIT-AND-SEE APPROACH TO SEE IN CHINA, TO SEE WHETHER OR NOT WE CAN HAVE THIS MORE SUSTAINABLE RALLY IN THE CHINESE EQUITY MARKET FOR THE FORESEEABLE FUTURE. SHERY:
ARE YOU GOING ANY CLOSER TO -- ARE WE GETTING ANY CLOSER TO POTENTIALLY INVESTING IN THE REAL ESTATE SECTOR IN CHINA IF WE CONTINUE TO SEE THESE POLICIES THAT COULD BE MORE SUPPORTIVE TOWARD PROPERTY MARKETS? KEN: WE ARE NOT REALLY THERE YET. IF YOU LOOK AT THE REAL ESTATE SECTOR IN CHINA OVER THE PAST FEW WEEKS, YOU HAVE HAD A FEW TRADING DAYS FOR INSTANCE OF YESTERDAY WAS A VERY STRONG TRADING DAY FOR CHINESE PROPERTY COMPANIES. PRIOR TO THAT HE HAD WEAKNESS. IT'S VERY VOLATILE AT THE
MOMENT. IN ORDER FOR US TO SEE THINGS MOVE FURTHER AHEAD, WE DO NEED TO SEE WHERE THAT DEMAND IS GOING TO COME FROM. THERE IS PLENTY OF SUPPLY OUT THERE, PRICES HAVE FALLEN TO THE STANDPOINT WHERE IT IS BECOMING ATTRACTIVE, BUT IT WILL BE VERY IMPORTANT TO SEE SPECIFICALLY THAT DEMAND WILL PICK UP. WHETHER IT WILL BE FURTHER POLICIES, FOR THE REDUCTION OF INTEREST RATES, FURTHER LOOSENING OF POLICIES.
ADDITIONAL POLICIES THAT ARE NEEDED TO PUSH UP DEMAND. THIS IS WHAT WE ARE WAITING TO SEE, WHAT FURTHER ANNOUNCEMENTS WILL BE MADE. ESPECIALLY AROUND THE TIER TWO AND TIER THREE CITIES WHERE THEY ARE BELOW EXPECTED LEVELS. ANNABELLE:
WHAT ELSE WE'RE WAITING TO SEE IS THE DIRECTION THE FED TAKES. THE OUTLOOK FOR STEEPER CUTS NEXT YEAR SEEMS TO BE COMING OFF THE TABLE, AT LEAST FOR NOW. WHAT DOES THAT MEAN FOR THE OUTLOOK FOR ASIAN EQUITIES IN TURN? KEN: IT'S DIFFICULT. IF THE U.S. DOLLAR STARTS TO SOMETHING
AGAIN LIKE WE HAVE BEEN SEEING IN THE PAST COUPLE OF WEEKS, THAT TENDS TO ACTUALLY COINCIDE WITH ASIAN EQUITY MARKETS HAVING A WEAKER POTENTIAL. FACT IS THAT IF YOU LOOK AT OVERALL DOLLAR RELATIONSHIPS WITH THE ASIAN STOCK MARKET, ANY TIME THE DOLLAR STRENGTHENS, ASIAN STOCK MARKETS TEND TO NOT PERFORM. ANY TIME ON THE DOLLAR WEAKENS A BIT, EC QUITE A BIT OF STRONG PERFORMANCE IN THE ASIAN EQUITY MARKETS. THE FACT IS THAT EXPECTATIONS ARE THAT THE FED MAY NOT BE LOWERING INTEREST RATES AS MUCH AS PREVIOUSLY EXPECTED, THAT COULD HAVE A NEGATIVE IMPACT WITH ASIAN EQUITY MARKETS. SO INVESTORS DEFINITELY NEED TO
BE CAREFUL AS TO HOW TO POSITION PORTFOLIOS PARTICULARLY NOW WHEN YOU HAVE THIS UNCERTAINTY AS TO WHAT THE FED WILL DO. ANNABELLE: IT COSTS QUITE A SHUTTLE. AS YOU MENTIONED, THE NIKKEI DOWN 2% IN EARLY TRADE. KEN WONG, IS THE PORTFOLIO SPECIALIST AT EASTSPRING INVESTMENTS. MORE AHEAD ON "THE ASIA TRADE." THIS IS BLOOMBERG. ♪
>> IPHONE GREW IN EVERY GEOGRAPHIC SEGMENT MARKING A RECORD FOR THE CATEGORY. AND SERVICES SERVICES SET AN ALL-TIME REVENUE RECORD OF 12% YEAR ON YEAR. WE ALSO SET A SEPTEMBER QUARTER SEGMENT REVENUE RECORDS IN THE AMERICAS, EUROPE, AND THE REST OF ASIA PACIFIC'S, AS WELL AS IN THE LARGE NUMBER OF COUNTRIES. ANNABELLE:
THAT WAS APPLE CEO TIM COOK SPEAKING ON THE EARNINGS CALL. IT REALLY IMPRESSIVE NUMBERS FOR PARTS OF THE IPHONE BUSINESS. OUR LAST GUEST MARIBEL LOPEZ SAYS APPLE REALLY PULLED A RABBIT OUT OF A HAT ON THIS ONE GIVEN THE STRONG SALES AHEAD OF THE HOLIDAY SEASON. BUT WHAT REALLY WAS NOT MENTIONED WAS SALES FOR THE CHINA MARKET IN PARTICULAR. IT CAST A SHADOW BECAUSE APPLE IS FACING VERY INTENSE COMPETITION LOCALLY FROM THE LIKES OF HUAWEI, XIAOMI WHO ARE EATING INTO THEIR MARKET SHARE. ALSO TRACKING AMAZON, THAT COMPANY ALSO FORECAST A STRONG HOLIDAY SHOPPING PERIOD, TALKING IS WHAT ABOUT THE DEMAND FOR THEIR CLOUD SERVICES. WE HAVE STRONG RESULTS ACROSS
THE WEEK FROM ALPHABET. MICROSOFT, AS WELL, EVEN THOUGH THEY DIDN'T HAVE A FORECAST THAT MADE ESTIMATE IN THE AREA, IT IS NOT ABOUT THE DEMAND SIDE, AND MORE ABOUT THE CAPACITY. THE STOCK RISING 6% IN LATE TRADE. AND WATCHING INTEL, GIVEN WE
HAD THE CEO TALKING ABOUT THE EXTREMELY AMBITIOUS TURNAROUND PLAN FOR THE BUSINESS. LET'S LOOK AT INTEL SUPPLIERS. IT'S NOT JUST THE FOCUS ON WHAT HAPPENS WITH THAT SHIP DESIGN BUSINESS. WE ARE ALSO TALKING ABOUT THAT, BUT ALSO WHAT THEY ARE DOING WITH THEIR FOUNDRY BUSINESS, GETTING SOME CUSTOMERS. AWS IS ONE OF THEM IN THE
PERIOD. BUT THIS IS THE OUTLOOK FOR SOME OF THE MAJOR CHIP COMPANIES IN ASIA, PRETTY MUCH UNDER PRESSURE ACROSS THE BOARD. LET'S GET MORE FROM INTEL CEO PAT GELSINGER, SAYING THE UPTAKE OF THEIR IT I ACCELERATOR HAS BEEN SLOWER THAN HOPED, DUE TO SOFTWARE ISSUES. HE TALKS ABOUT WHAT HE CALLS THE MOST AUDACIOUS REBUILDING PLAN IN HISTORY. PAT: WE WORK VERY HARD THIS QUARTER TO GET THIS DONE -- THE PEOPLE ACTIONS, THE RESTRUCTURING CHARGES, LARGELY FINISHED. IT WAS A CHALLENGING QUARTER THAT WAY. BUT TO ALSO DELIVER
BETTER-THAN-EXPECTED RESULTS IF WE ELIMINATE THOSE ONE-TIME CHARGES, AND TO TAKE OUR GUIDANCE UP FOR Q4, I AM VERY PROUD OF OUR TEAM BEING ABLE TO DO BOTH OF THOSE THIS QUARTER. SOME OF THE MOST DIFFICULT RESTRUCTURING CHARGES MAY BE IN THE HISTORY OF INTEL SINCE OUR MICROPROCESSOR DECISION ALMOST FOUR YEARS AGO, GETTING THAT DONE FOR STILL TAKING THE GUIDE UP. ED: AWAY FROM THE FINANCIALS AND NUMBERS, COULD YOU TALK ABOUT THE FOUNDRY BUSINESS THAT GIVE YOU SOME CONFIDENCE IN THAT GUIDE? PAT: IF WE TAKE IT APART, THE CLIENT BUSINESS, WE HAVE LAUNCHED OUR LUNAR LEG PRODUCT, THE SECOND-GENERATION OF OUR AI PC, THE AI PC SEGMENT IS VERY SOLID. WE WILL BE LAUNCHING THE COMMERCIAL VERSION OF THAT INTO A GOOD MARKET, WE BELIEVE, NEXT YEAR FOR A WINDOWS REFRESH, A CORPORATE REFRESH CYCLE, AND WE START TO SEE MORE STRENGTH IN THE AI PC CATEGORY OVERALL WITH A STRONG SET OF USE CASES. AND ISV'S, BRINGING NEW SOFTWARE INTO THE MARKETPLACE.
WE FEEL GOOD ABOUT THE BUSINESS. DATA CENTER QUARTER-ON-QUARTER, A BIT BETTER THAN PEOPLE FORECAST. AND A STRONGER PRODUCT LINE WITH OUR ZEON 6 PRODUCTS STARTING TO RAMP. AND FINALLY ON THE INTEL FOUNDRY QUARTER-ON-QUARTER GROWTH IN , THAT AREA, AND A STRONG PIPELINE OF EXTERNAL CUSTOMERS.
WE ANNOUNCED AMAZON AND TWO OTHER 18A CUSTOMERS, SOME ADDITIONAL AND ADVANCED PACKAGING CUSTOMERS. WE ARE STARTING TO SEE THAT ED: YOUR AI ACCELERATOR DIDN'T GET THE TRACTION YOU HAD HOPED, AND YOU WOULD NOT BE MAKING ABOUT $500 MILLION IN SALES TARGET FOR THIS FISCAL YEAR. WHY? IS IT A USE CASE ISSUE, THAT THE DATA CENTER OPERATORS ARE NOT LOOKING AT IT, OR SOMETHING ELSE? PAT: TWO FACTORS. NOW WE HAVE GAUDI® 3 COMING OUT SO THERE IS MORE'S ENTHUSIASM FOR THE PRODUCT. THE SECOND IS THE SOFTWARE. THE SOFTWARE USE CASES, THE AI WORLD HAS MOVED VERY RAPIDLY AND INNOVATING VERY QUICKLY. AND THE ROBUSTNESS AND THE COMPLETENESS OF THE GAUDI® SOFTWARE STOCK HAS NOT BEEN GREAT. AND IT IS AN ACCELERATOR, NOT A
FULL REPROGRAMMABLE GPU SO IT MAKES THE SOFTWARE PORTING AND OPTIMIZATION MORE DIFFICULT. AS WE GET MORE OF THAT RUNNING ON GAUDI® 3 WE SELL THE SOFTWARE PROBLEMS. SECONDLY IS CAPABILITY, WHICH WE WILL BE DOING OUT IN TIME.
THAT DEVELOPMENT EFFORT IS ALSO WELL UNDERWAY. SO WE FEEL WE ARE IN A SOLID POSITION. ED: BLOOMBERG HAS REPORTED THAT QUALCOMM, SOME OF YOUR PEERS ARE INTERESTED IN BUYING SOME OR PART OF INTEL. CAN YOU CONFIRM WHETHER YOU RECEIVED A FORMAL OFFER? PAT: OF FURTHER DEBTS OBVIOUSLY THAT HAS BEEN RUMORS AND TURN IN THE INDUSTRY. I THINK THAT INDICATES HOW
IMPORTANT INTEL IS TO THE INDUSTRY STRUCTURE, AND SEMICONDUCTORS AND AID HOW -- I NICO HOW IMPORTANT THOSE SUPPLY CHAINS ARE FOR THE WORLD. WE DON'T DO ANY OF THESE RUMORS AS PARTICULARLY EMERITUS. WE LAID OUT A STRATEGY AND REAFFIRMED IT WITH OUR BOARD OF DIRECTORS. OBVIOUSLY AS WE HAVE TAKEN THESE STEPS THIS QUARTER IN RESTRUCTURING AND GETTING COSTS WHERE THEY NEED TO BE, WE HAVE THE CAPACITY TO GO ON THE JOURNEY THAT WE HAVE LAID OUT TO PRODUCE SUSTAINABLE PROFITABILITY, AND RESULTS IN SHAREHOLDER RETURNS. SHERY: INTEL CEO PAT GELSINGER, SPEAKING WITH BLOOMBERG TECHNOLOGY CO., ED LUDLOW. WE ARE JOINED NOW FOR MORE ON NOT ONLY INTEL, BUT ALSO APPLE'S RESULTS. HOW MUCH OF THIS IN THE LATE
TRADING SESSION WAS A RELIEF RALLY FIGURED OUT HOW CONVINCING WAS PAT GELSINGER GUIDANCE ON THE FUTURE OF THIS BUSINESS? TOM: PEOPLE CAME INTO THIS QUARTER FOR INTEL WITH REALLY LOW EXPECTATIONS. THEY HAVE MADE A LOT OF NEWS IN RECENT WEEKS -- THE LAYOFFS, HOLDING OFF ON THEIR DIVIDEND, DELAYING PLANS TO RAMP UP PRODUCTION AND BUILD FABS IN PARTS OF EUROPE. THESE WERE ALL NEGATIVE SIGNS FOR INTEL AND WE HAVE SEEN THEIR STOCK UNDER A LOT OF PRESSURE. SO COMING INTO THIS QUARTER, EXPECTATIONS WERE PRETTY LOW. THE CONCERN IS THAT THEY HAVE FALLEN BEHIND IN AI. THEY HAVE FALLEN BEHIND IN THE PRODUCTION OF THE MOST ADVANCED CHIPS. THEY HAVE MADE THIS ANNOUNCEMENT ABOUT BECOMING A
FOUNDRY BUSINESS, LOOKING AT WAYS TO STRATEGICALLY GET OUT OF BUSINESSES THAT ARE NOT STRATEGIC TO THEM. AND THE CONCERN IS THAT INTEL IS IN TROUBLE. IF YOU HAVE -- WE HAVE REPORTED AND OTHERS HAVE REPORTED INTEREST FROM OUTSIDE COMPANIES. THIS WAS A COMPANY THAT WAS FOR
MANY YEARS THE PINNACLE OF GLOBAL CHIPMAKING -- THE TOP OF THE CHIPMAKING INDUSTRY. AND THEY HAVE REALLY FALLEN, THEY ARE A FRACTION OF WHAT THEY USED TO BE. AND PEOPLE ARE LOOKING FOR THEM TO COME FROM BEHIND. AN ARTIFICIAL INTELLIGENCE, THEY WENT TO SEE WHAT WILL HAPPEN WITH THIS FOUNDRY BUSINESS. CAN THEY BUILD FACTORIES THAT WILL MAKE THEM AN ACTUAL MANUFACTURER OF CHIPS, NOT JUST A DESIGNER? REALLY BIG ASK. REALLY AMBITIOUS.
AND PAT GELSINGER SPOKE TO THAT, IT'S AUDACIOUS AND IT WILL TAKE SOME TIME. IF THEY COME UP WITH RESULTS LIKE THEY SHOWED TODAY THAT SHOWED THAT THERE ARE SIGNS OF HOPE, THAT IS WHERE THE RELIEF IS COMING FROM. BUT INTEL IS BY NO MEANS OUT OF THE WOODS. ANNABELLE: LET'S TALK ABOUT APPLE AS A WEAKNESS IN CHINA, DO YOU THINK THAT IF THEY MANAGE TO SAY , FIND A PARTNER, THAT COULD SPIKE DEMAND FOR ITS PRODUCTS, OR DO YOU THINK THERE IS SOMETHING DEEPER IN THE CHANGING PREFERENCE WE HAVE SEEN FOR HOMEGROWN GIANTS LIKE HUAWEI FOR XIAOMI, AND DO YOU THINK IT IS BEING APPRECIATED IN THE STOCK PRICE YET? TOM: I WANT TO START ON THE AI QUESTION. HERE IN THE U.S. THEY HAVE ANNOUNCED A
PARTNERSHIP WITH OPENAI WHERE THEY WILL INCORPORATE MORE ARTIFICIAL INTELLIGENCE INTO THE SOFTWARE, INTO THE SMART PHONE, GIVE YOU MORE REASONS TO KEEP IN BY IPHONES WHICH ARE THEIR FLAGSHIP PRODUCT. THEY HAVE ONLY TRICKLED OUT A FEW OF THOSE INGREDIENTS THUS FAR, SO WE REALLY DON'T KNOW WHAT THAT IS GOING TO LOOK LIKE. THEY HAVE ANNOUNCED GRAND PLANS, BUT ONLY INTRODUCED A SMALL PERCENTAGE OF THOSE AI CAPABILITIES IN THE PHONE. ONCE WE START TO SEE THAT, I THINK YOU WILL SEE WHAT THE PETITIONER COULD BE IF YOU WERE ABLE TO PARTNER WITH, SAY, A BAIDU IN CHINA. THAT COULD GENERATE A LOT OF
EXCITEMENT AROUND THE IPHONE. , AGAIN, IT'S JUST SO UNPROVEN AS OF YET. ON YOUR OTHER QUESTION, COMPETITION IN CHINA IS REAL. WE ARE SEEING PHONES FROM HUAWEI THAT PEOPLE ARE REALLY INTO. EASY COMPETITION FROM OTHER MAKERS LIKE XIAOMI, THE LIST GOES ON.
CHINA IS A VERY COMPETITIVE MARKET. REMEMBER, THERE IS A POLITICAL ENVIRONMENT THAT CAN'T BE UNDERESTIMATED. TENSION BETWEEN THE U.S. AND CHINA. WE MIGHT ELECT A PRESIDENT IN A
COUPLE OF DAYS WHO WANTS TO ERECT THESE MASSIVE TRADE BARRIERS WITH CHINA, WE DON'T KNOW HOW EFFECTIVE HE WILL BE. HOWEVER, IF YOU RATCHET UP TENSION WITH CHINA, THE QUESTION BECOMES, DO THEY RETALIATE? AND WHAT IS THE IMPACT WITH BIG U.S. COMPANIES LIKE APPLE WHO ARE STILL ABLE TO OPERATE IN CHINA, THEY ARE MAKING AND MANUFACTURING THEIR PHONES THERE AND THEY ARE ALSO SELLING THEIR PHONES INTO THE MARKET. DOES THE MARKET THERE START TO THINK, I DON'T KNOW IF YOU WANT TO BUY THESE AMERICAN PRODUCTS AT A TIME WHEN THE U.S.
IS RATCHETING UP PRESSURE ON THIS COUNTRY? IT'S A COMBINATION OF THINGS THAT I THINK RAISING QUESTIONS ABOUT APPLE'S FUTURE IN CHINA. HOW CONCERNING IS IT THEN, GIVEN ALL THESE CHALLENGES, THAT OTHERS HAVE FALLEN SHORT OF ESTIMATES. IPADS, THEIR WEARABLES DIVISION. ALTHOUGH SERVICES CAME BROADLY
IN LINE WITH ESTIMATES, THEY HAVE SO MUCH COMPETITION IN THAT SEGMENT AS WELL. TOM: AND TIM COOK WAITED TO OTHER AREAS OF STRENGTH, THERE WAS A RECORD QUARTER FOR IPHONE IN GENERAL. NOW THEY ONLY HAD A FEW WEEKS OF THE IPHONE 16. WE WILL SEE MORE OF THAT IN THE YEAR AND HOLIDAY SEASON WHEN IT IS OBVIOUSLY VERY VITAL FOR THEM. WHEN THERE IS A LOT OF GIFTGIVING AND GIFT BUYING. WE WILL SEE WHETHER THE IPHONE 16 HAS THE INGREDIENTS THAT CONSUMERS ARE LOOKING FOR. I LOOK AT SOME OF THE RESULTS
THAT CAME OUT OF APPLE AT THE END OF THIS MOST RECENT QUARTER, AND I THINK THERE IS CAUSE FOR OPTIMISM. THEY HAD BEEN QUESTIONS ABOUT WHETHER THE-16 WAS A GAME CHANGING DEVICE, OR MORE EVOLUTIONARY VERSUS REVOLUTIONARY. AND THE EARLY REVIEWS HAVE BEEN SORT OF MIXED AND SODA FEELING LIKE ASX IT'S GOOD, BUT IT'S NOT A SUPER GAME CHANGER WHEN IT COMES TO NEW FEATURES AND NEW CAPABILITIES. SO IT REALLY REMAINS TO BE SEEN. ONCE WE GET A FULL FLUTTER OF-16 SALES AND WE START TO SEE MORE OF THOSE AI CAPABILITIES WITH THE PARTNERSHIP WITH OPENAI WILL THEN ENTER THE IPHONE, DOES THAT GENERATE EXCITEMENT AND GET PEOPLE COMING OUT AND BUY MORE IPHONES FOR THE HOLIDAY SEASON? A LOT IS RIDING ON IT. BUT WHEN YOU LOOK AT CHINA, THEY DIDN'T ISSUE A SUPER OPTIMISTIC FORECAST FOR THAT QUARTER.
SHERY: OVERSEEN THE EXECUTIVE EDITOR IN TECHNOLOGY, TOM GILES, FROM SOUTH SAN FRANCISCO WITH BIG TECH EARNINGS. SECOND QUARTER PROFIT FOR SOUTHBANK BEAT ESTIMATES. BUT A LOT OF DOWNSIDE, THEY REPORT RESULTS LATER IN THE MONTH, BUT WE SAW THAT THERE MAJORITY STAKE IN ARM . BURSTEIN LOWERED THEIR VIEW ON
ARM SO WE ARE SEEING A DOWNSIDE OF MORE THAN 4%. THIS IS BLOOMBERG. ANNABELLE: CHECKING IN ON WHO FUTURES IN EUROPE ARE OPENING. WE ARE SEEING THEM MOVING FRACTIONALLY HIGHER. PUT IT IN THE CONTEXT OF
YESTERDAY'S TRADING, WE SAW EUROPEAN STOCKS SLIPPING FOR A THIRD STRAIGHT SESSION, LED BY RETAIL AND TECH STOCKS. ALL SECTORS OF NOZICK IN THE RED. THINKING ABOUT THE MONTH IN AGGREGATE, IT WAS THE WORST MONTHLY DROP IN A YEAR FOR EUROPEAN EQUITIES. DISAPPOINTING CORPORATE EARNINGS COMING THROUGH. FOLLOWED BY THE U.S., CONCERNS ABOUT THE GOVERNMENT BUDGET SENT BOMBS TUMBLING.
THE LABOR GOVERNMENT IS LOOKING AT MASS BORROWING AND FISCAL STIMULUS IN THE COMING YEAR. CONCERNS ABOUT THAT FEEDING THROUGH. SHERY: IN THE EARLY ASIAN TRADING SESSION, THE NIKKEI AT WHAT POINT LOSING MORE THAN 2%. IT HAS TO DO WITH THE STRENGTH OF THE JAPANESE YEN. HOLDING STEADY AT THE 152 LEVEL OF A NIGHT, WE SAW A JUMP UP OVER 1% AT ONE POINT ARE GIVEN THE COMMENTS FROM GOVERNOR ARE TALKING ABOUT HOW THE CURRENT POLITICAL SITUATION IN JAPAN WOULD NOT STOP HIM FROM HIKING RATES IF PRICE IS COMING IN LINE WITH FORECASTS. THE KOSPI LOSING A QUARTER OF
1%. CONTINUING TO TRADE IN A NARROW RANGE. BIG EVENTS NEXT WEEK INCLUDING THE U.S. ELECTION. THE ASX 200 IS DOWN 1%. KEEP AN I ON THE MINERS AND COMMODITY STOCKS. WE SAW A BIG JUMP OVERNIGHT IN OIL GIVEN THAT IRAN IS PLANNING AN ATTACK ON ISRAEL. BUT RIGHT NOW BRENT IS
CONTINUING GAINS OF ABOUT 2% HIGHER, $74 A BARREL. WE CONTINUE TO WATCH THE METAL SPACE, THIS ON CONCERNS ABOUT CHINA'S ECONOMY. WE HAVE THE NPC, THE TOP LEGISLATIVE BODY IN CHINA, MEETING NEXT WEEK. ANNABELLE: JUST LOOKING AT PMI DATA ACROSS
ASIA TODAY, PRETTY INTERESTING READINGS. YOU CAN SEE THAT MOST OF THEM ACROSS THE BOARD ARE IN CONTRACTIONARY TERRITORY AND STAYING THERE. BUT THERE HAS BEEN A MODEST IMPROVEMENT IN SOME PARTS. ONLY TAIWAN AND THAILAND HAD A SLIGHT DETERIORATION, AND JAPAN.
BUT OTHERS SEEING SOME IMPROVEMENT OR AT LEAST STEADINESS. IT IS INTERESTING, OFF THE BACK OF CHINA'S PMI DATA. WE HAD OCTOBER FIGURES AND WITHOUT THE MANUFACTURING SECTOR EXPANDING ON A MONTHLY BASIS FOR THE FIRST TIME SINCE APRIL. AND THE NONMANUFACTURING SECTOR ALSO BACK ABOVE THAT 50 LINE. IT APPEARS AT LEAST IN CHINA THE SIGNS OF THE POLICY IMPACT ARE EMERGING. THE KEY QUESTION IS WHETHER THAT STARTS TO TRANSLATE INTO ITS BIGGEST PARTNERS IN THIS PART OF THE WORLD, AS WELL. SHERY:
AND OF COURSE WE CONTINUE TO WATCH AND COME DOWN ELECTION DAY IN THE U.S. ONLY FIVE DAYS TO GO. THE PRESIDENTIAL CANDIDATES ARE NOW RAMPING UP THEIR MESSAGING TO DRAW AND ANY UNDECIDED VOTERS AND MOBILIZE THEIR SUPPORTERS TO CAST BALLOTS. REPUBLICAN DONALD TRUMP AND HIS ALLIES ARE TELLING SUPPORTERS THAT THEY ARE ON PACE FOR A RUNAWAY VICTORY BARRING FRAUD. THAT IS SETTING THE STAGE FOR
OUTRAGE AND LEGAL CHALLENGES IF THE ELECTION DOES NOT BREAK IN HIS FAVOR. IN REALITY, MOST POSIES HAVE THE CANDIDATE IS ACTUALLY TIED, WITH SOME MODELS SHOWING A SLIGHT TRUMP ADVANTAGE. EARLIER THURSDAY, DEMOCRATIC CANDIDATE VICE PRESIDENT KAMALA HARRIS SEIZED ON TRUMP'S COMMENT THAT HE WOULD PROTECT WOMEN IF ELECTED, WHETHER THEY LIKE IT OR NOT. >> IT ACTUALLY IS VERY OFFENSIVE TO WOMEN, IN TERMS OF NOT UNDERSTANDING THEIR AGENCY, THEIR AUTHORITY, THEY ARE RIGHT AND THEIR ABILITY TO MAKE DECISIONS ABOUT THEIR OWN LIVES, INCLUDING THEIR OWN BODIES. HE WILL NOT BE FIGHTING FOR WOMEN'S REPRODUCTIVE RIGHTS. HE DOES NOT PRIORITIZE THE FREEDOM OF WOMEN AND THE INTELLIGENCE OF WOMEN TO MAKE DECISIONS ABOUT THEIR OWN LIVES AND BODIES.
SHERY: BLOOMBERG HAS BEEN MODELING WITH BOTH CANDIDATES' POLICIES COULD MEAN FOR GROWTH, INFLATION AND DEBT IN THE U.S. BLOOMBERG ECONOMICS HAS CRUNCHED THE NUMBERS OF THE IMPACT OF DONALD TRUMP'S PROPOSAL TO RAISE TARIFFS ON CHINESE IMPORTS TO 60% AND ON ALL OTHER PARTNERS TO 20%. HE CLAIMED THE U.S. COULD BE TAKING IN, QUOTE, TRILLIONS OF DOLLARS. BUT BLOOMBERG ECONOMICS SAYS TRUMPS A NEW TARIFF WORK COULD MEAN AN ADDED REVENUE OF THE 100 BILLION DOLLARS.
HIGHER THAN THE 83 BILLION DOLLARS COLLECTED IN 2023, IT IS WELL SHORT OF THE PROMISED MILLIONS. LET'S BRING IN ANNA ASHTON, COFOUNDER OF ASHTON ANALYTICS. GLAD TO HAVE YOU WITH US. SHOULD WE BE PREPARED FOR TRADE WAR'S ON ALL FRONTS SHOULD TRUMP BE ELECTED? ENDA: YES, I THINK THE BOTTOM LINE IS THAT WE SHOULD BE READY AND PREPARED FOR TRADE WARS, SHOULD DONALD TRUMP GET REELECTED. AND, FRANKLY, WE SHOULD BE READY AND PREPARED TO TARIFFS TO AT LEAST STAY IN PLACE FOR THE MOST PART FOR A WHILE. IF HARRIS IS ELECTED, TOO.
BUT CLEARLY TRUMP'S IS A BIGGER BAND OF TARIFFS THAN HARRIS'S. HE TALKS ABOUT THEM AS A WAY TO JUSTIFY AND PAY FOR MASSIVE TAX CUTS. SO I THINK THE APPROACHES WILL BE A LITTLE BIT DIFFERENT. SHERY: WHEN IT COMES TO SPECIFICALLY YOUR RELATIONSHIP WITH CHINA, SEEMS LIKE BOTH REPUBLICANS AND DEMOCRATS ARE ON THE SAME PAGE ON THAT ONE. WHAT CAN WE EXPECT IN TERMS OF
MORE ACTION AGAINST BEIJING, EITHER FROM VICE PRESIDENT KAMALA HARRIS OR DONALD TRUMP? ANNA: THEY ARE ON THE SAME PAGE IN THAT BOTH SIDES SEE CHINA AS THE PRIMARY COMPETITOR OF THE UNITED STATES AND POSSIBLY OR ALREADY, THE UNITED STATES PRIMARY ADVERSARY. BUT THERE ARE SOME DIFFERENCES IN HOW EACH SIDE AND EACH PRESIDENTIAL CANDIDATE WOULD PRIORITIZE AND APPROACH ISSUES. I THINK WITH HARRIS, IT IS PRETTY CLEAR THAT SHE WILL CONTINUE SOMETHING LIKE THE BIDEN ADMINISTRATION'S APPROACH WHICH MEANS THERE WILL BE A LOT OF DIPLOMATIC ENGAGEMENT. NOT NECESSARILY TO REACH ANY AGREEMENT, BUT TO MAKE SURE THE TWO SIDES UNDERSTAND EACH OTHER AND KNOW EACH OTHER'S REDLINES AND BOTTOM LINES AND PRIORITIES, AND NOTHING IS SURPRISING OR THROWS THE RELATIONSHIP INTO A SPIRAL. WITH TRUMP ADMINISTRATION, WE ARE LIKELY TO SEE LESS TALK AND MORE ACTION. THEY HAVE ALWAYS EMPHASIZED THAT THE MOST IMPORTANT ENGAGEMENT IS AT THE LEADER LEVEL, AND IT DOES NOT NEED TO BE ANY ENGAGEMENT AT THE LOWER LEVEL.
ON THE OTHER HAND,, IF IT IS A GOOD RAPPORT ESTABLISHED BETWEEN TRUMP AND XI JINPING, THEN PERHAPS THEY WILL HAVE A MORE EFFECTIVE, OR RELIABLE HOTLINE TO EACH OTHER AND THAT WILL HELP TO PREVENT CALAMITOUS DEVELOPMENTS. ANNABELLE: OF COURSE, IT'S A TWO-WAY STREET. NOT JUST ABOUT HOW THE U.S. A PURCHASE CHINA, BUT HOW DO
YOU THINK CHINA IS LOOKING AT THE TWO CANDIDATES ON THE WAY THAT THEY WILL LOOK TO ENGAGE WITH THEM, AS WELL? ANNA: IT'S A REALLY GOOD POINT, ANNABELLE, I THINK NEITHER OF THESE TWO CANDIDATES IS CHINA'S IDEAL. WITH TRUMP, THERE IS A SLIM POSSIBILITY ANYWAY THAT HE WOULD VIEW THE UNITED STATES RELATIONSHIP WITH TAIWAN AS MORE TRANSACTIONAL. YOU CAN IMAGINE
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