Alibaba's Qwen Model Raises Stakes in AI Race | The China Show | 7/20/2026

DAVID: IT’S 9:00 A.M. IN SHANGHAI, SHENZHEN, AND HERE IN HONG KONG. YOU ARE WATCHING THE CHINA SHOW. >> WE ARE COUNTING DOWN TO THE OPENING OF MARKETS IN GREATER CHINA. BRENT CRUDE SURGES PAST $90 A BARREL AND TECH STOCKS UNDER PRESSURE AS THE U.S. AND IRAN TRADE FRESH STRIKES FOLLOWING THE DEATH OF U.S. TROOPS. ALIBABA SHARES AFTER IT LAUNCHED A PREVIEW OF ITS FLAGSHIP AI MODEL TO COMPETE WITH THE BEST U.S. COMPANIES HAS TO OFFER. ALSO, CHINESE REGULATORS SET TO CONVENE A MEETING TO STABILIZE THE MARKETS. CSI 300 IS COMING OFF ITS BIGGEST DROP SINCE LIBERATION DAY. PLUS, TSMC HIKES INVESTMENTS IN THE U.S. TO MEET DEMAND FROM CUSTOMERS AND WARD OFF RIVALS LIKE INTEL. >> THE OVERALL STRATEGY FOR US IS THAT WE HAVE VERY STRONG CONVICTION IN THIS MEGA TREND. WE ARE DOING EVERYTHING WE CAN WHEREVER WE CAN TO EXPAND, SUPPORT CUSTOMERS. AND ALSO DEMONSTRATE THAT WE DON'T INTEND TO LEAVE ANY FOOD ON THE TABLE FOR ANYBODY ELSE. >> MINMIN LOW AT THE WORLD CONFERENCE AT SHANGHAI WITH THE LATEST MODEL. WE WILL ALSO TAKE A LOOK AT PHYSICAL AI AS WE ARE JOINED BY THE CHINESE PRESIDENT OF ABB ROBOTICS AND THE FOUNDER AND CEO OF MATRIX ROBOTICS. ♪ DAVID: A VERY GOOD MORNING TO ALL OF OUR VIEWERS JOINING US. WE ARE STARTING TO SHOW OFF WITH SOME BREAKING NEWS. UNCHANGED AS FAR AS THE LOAN PRIME RATE FOR CHINA ARE CONCERNED FOR JOULY. SOME STRENGTH INTO THE CHINESE CURRENCY TAKING US INTO THE MARKET ACTION. CURRENTLY $90 IN OIL ON BRENT. WE ARE COMING UP HIGHS A LITTLE BIT ON THE MOST ACTIVE CONTRACT. SHANGHAI CRUDE PLAYING A BIT OF CATCH-UP RIGHT NOW. THE LATEST AND FAR AS THE TENSIONS AND THE STRIKES ARE CONCERNED, PUSHING UP ENERGY PRICES AS WE SPEAK. HAVE A LOOK AT KOREA, REOPENING TODAY AFTER CASH MARKETS WERE SHUT ON FRIDAY. TAIWAN IS COMING ONLINE AFTER A 6% DROP THAT WE HAD ON FRIDAY. JAPAN, WHICH WAS TRADING ON FRIDAY IS NOT TRADING TODAY. JUST CONSIDER THAT. STILL SEEING SOME PRESSURE, NOT AS BAD AS ONE WOULD EXPECT. S&P FUTURES ARE STABILIZING AFTER THE CHIPS GAUGE, PHILLY SEMICONDUCTOR INDEX ENTERED A BEAR MARKET ON FRIDAY. RIGHT. A COUPLE OF MOVERS TO TELL YOU ABOUT. ALL EYES ON SK HYNIX, JUST BELOW -- ON SK HYNIX. TSMC, WE WILL BRING YOU THE INTERVIEW WITH THE CFO. DOLLAR IS UP AGAINST MOST. THE MINORITY WOULD BE OIL RELATED CURRENCIES THAT ARE CATCHING A BID GIVEN WHERE ENERGY PRICES ARE. GOLD TUMBLING, HAS HELD AT THE 4000 LEVEL. APPROACHING THE OPEN TODAY, THE OTHER BIG STORY IS MOONSHOT AI ON FRIDAY REPORTED IPO OVER THE NEXT FEW MONTHS. THEN, YOU HAD SEPARATELY THE ALIBABA ANNOUNCEMENT AROUND ITS OWN MODEL. THE BIG DROP WE HAD ON FRIDAY. WE WILL TALK ABOUT THE TECHNICALS BUT HIGHER AS WE LOOK AT FUTURES GOING INTO THE MONDAY SESSION. REBECCA: YES, WE WILL BE WATCHING HOW CHINESE MARKETS OPEN AFTER ALIBABA UNVEILED ITS LATEST AI MODEL OVER THE WEEKEND. IT'S ONE THE COMPANY SAYS IS COMPARABLE TO LEADING FRONTIER MODELS. IT IS COMING AFTER MOONSHOT'S LATEST RELEASE HAS CONCERNS THAT BEIJING MAY BE CLOSING THAT GAP ON U.S. TECH RIVALS. LET'S BRING IN MINMIN LOW FOR MORE. MINMIN: YES, THERE HAS BEEN A LOT OF BUZZ AROUND THIS MODEL BEHIND ME BECAUSE IT IS THE LARGEST CHINESE AI MODEL TODAY WITH 2.8 TRILLION PARAMETERS. ACCORDING TO THE COMPANY, IT OUT RIVALS MOST FRONTIER MODELS EXCEPT FOR ANTHROPIC'S FABLE FIVE AND OPENAI'S. IT REALLY STUNNED THE TECH WORLD WHICH EARLIER THIS YEAR WAS STILL THINKING MAYBE CHINESE MODELS ARE ABOUT 12 MONTHS BEHIND THE USA I MODELS BUT THEY SEEM TO BE CLOSING THE GAP MUCH FASTER THAN EXPECTED. THAT IS DESPITE NOT BEING ABLE TO ACCESS SOME OF THE MOST ADVANCED NVIDIA CHIPS. THAT IS WHY WE ARE SEEING THE MARKET SELLOFF. WE UNDERSTAND THAT MOONSHOT AI IS LOOKING TO LIST POTENTIALLY AS SOON WITHIN THE NEXT SIX MONTHS. THEY HAD BEEN LOOKING AT POTENTIALLY PULLING THE TRIGGER EVEN BEFORE THE RELEASE OF THIS KIMI MODEL, MAINLY BECAUSE THE COMPANY SAYS IT HAS HIT $300 MILLION IN ANNUAL RECURRING REVENUE IN JUNE. THAT IS A GOOD INDICATOR FOR FUTURE GROWTH. IT LOOKS LIKE THE TIME IS RIGHT FOR A POTENTIAL IPO. WE UNDERSTAND THAT THE COMPANY IS ALREADY LOOKING TO UNWIND SOME OF ITS STRUCTURE IN ORDER TO SMOOTH THE PATH FOR THE HONG KONG IPO. DAVID: FROM ONE SO THE OTHER OPENING WEEKEND, TELL US ABOUT ALIBABA'S ANNOUNCEMENT. MINMIN: YES, INTERESTING TIMING FOR THAT ONE BECAUSE IT CAME OUT ON SUNDAY. ALIBABA ALSO ANNOUNCING IT IS LAUNCHING A REVIEW OF AN UPGRADED VERSION OF THE Q1. THE COMPANY TOUTS IT IS ONE OF THE BEST-PERFORMING MODELS OUT THERE, SECOND ONLY TO ANTHROPIC. THE TIMING IS INTERESTING. EVERYBODY KNEW THAT MOONSHOT AI GIVE US ADVANCE NOTICE THAT WOULD ANNOUNCE THIS NEW PRODUCT ON FRIDAY. IT MAKES ME WONDER HOW MUCH OF ALIBABA'S ANNOUNCEMENT WAS TRIGGERED BY KIMI'S ANNOUNCEMENT AND ALL THE BUZZ AROUND IT. THEY ALSO FOLLOWED UP WITH THEIR OWN ANNOUNCEMENT ON SUNDAY. THE TECHNOLOGY IS A LITTLE NUANCED HERE BECAUSE YOU LOOK AT KIMI, THERE HAS BEEN SO MUCH INTEREST OVER THE WEEKEND. SO MUCH SO THAT THE COMPANY HAS PAUSED SUBSCRIPTION AND PRIORITIZING CURRENT USERS. WHAT THIS TELLS YOU IS THAT BECAUSE THE MODEL IS SO LARGE, USING IT REQUIRES A HUGE AMOUNT OF COMPUTE, A HUGE AMOUNT OF AI ACCELERATORS, AND GPU'S ARE IN SHORT SUPPLY IN CHINA NOW. THIS COULD BE ONE FACTOR THAT CONSTRAINS THE PACE OF THE DEPLOYMENT OF THIS MODEL. REBECCA: THAT IS BLOOMBERG'S CHINA CORRESPONDENT MINMIN LOW WITH THE VERY LATEST ON THOSE DEVELOPMENTS OVER THE WEEKEND. LOOKING AT HOW WE ARE SEEING THAT READ THROUGH. A LOT OF THAT FEELING OF JITTERING THIS THROUGH FRIDAY WHEN WE SAW TRADING AND THE CSI 300 AT THE LOWEST SINCE EARLY APRIL, SINCE LIBERATION DAY. FOR MORE ON THE OUTLOOK FOR CHINESE MARKETS, PARTICULARLY WHAT WE ARE EXPECTING TO SEE TODAY, LET'S BRING IN OUR MANAGING EDITOR FOR ASIAN EQUITIES. LET'S KICK OFF, WHAT DID WE ACTUALLY SEE HAPPEN THROUGH FRIDAY? BECAUSE THERE WAS MOVEMENT SELLOFF AND THEN WE SAW A LITTLE BIT OF THE NATIONAL TEAM COMING IN WITH SUPPORT. >> DEFINITELY A FEW THINGS AT PLAY ON FRIDAY. THERE WAS A SENSE OF PANIC ON FRIDAY, PLAYING OUT NOT JUST IN THE CHINESE MARKET BUT THE GLOBAL TECH MARKET. THERE WAS THIS INNOVATION COMING IN. PEOPLE WERE GRAPPLING TO UNDERSTAND WHETHER THIS IS ANOTHER DEEPSEEK MOMENT OR A MILDER VERSION OF IT. THAT IS WHY PEOPLE ARE TRYING TO LOCK IN PROFITS AS SOON AS POSSIBLE. IN CHINA, STAR 50, THAT INDEX IS REALLY PERFORMING WELL, ALMOST AS WELL AS THE KOSPI. THAT IS AN EASY INDEX FOR PEOPLE TO TARGET AND SELL EVERYTHING THEY HAVE. CSI 300 ALSO WAS ONE OF THE VICTIMS. YES, THE NATIONAL TEAM DID SEEM TO COME IN. WE DID WRITE A STORY ABOUT HOW ALL THESE ETF'S FAVORED BY NATIONAL TEAM GOT A LOT OF INFLOWS LAST FRIDAY. THIS MORNING, YOU GUYS WERE TALKING ABOUT HOW CSMC WAS GOING TO HOLD A MEETING WITH A GROUP OF MARKET PARTICIPANTS. WE ARE SEEING SOME STABILIZING MEASURES POTENTIALLY COMING. REBECCA: REALLY INTERESTING DYNAMIC ON THE ONE HAND THAT IN SOME WAYS, THIS IS COMING BECAUSE OF THE ADVANCES WE ARE SEEING ON THE CHINA AI SEEN. BUT AT THE SAME TIME, WE PERHAPS TO SEE BEIJING COMING INTO STABILIZE THINGS. WHAT OTHER MEASURES WE MIGHT SEE COME THROUGH TODAY, AND HOW DO YOU THINK THAT READS THROUGH INTO THE BROADER CHINESE EQUITY MARKET? LIANTING: I THINK THE MAIN THING IS THEM TRYING TO -- TALK ABOUT THE BEIJING GOVERNMENT -- TRYING TO SENT A SIGNAL THAT THESE MEASURES MAY BE COMING. WHETHER HOW POWERFUL THESE MEASURES MAY BE, WE REALLY DON'T KNOW. THEY COULD BE CONSTRUCTING BEIJING BACK TO INVESTMENT COMPANIES TO BUY MORE CHINESE SHARES. THAT COULD BE VERY EASY. WE ALREADY SAW TWO OF THESE COMPANIES SAY THEY BOUGHT SOME SHARES RECENTLY, JUST THE BACK OF WHAT WE JUST DISCUSSED. IN TERMS OF HOW THE MARKET MAY REACT WHERE THE READTHROUGH OF THIS, I THINK PEOPLE SPENT A LOT OF TIME OVER THE WEEKEND THINKING ABOUT WHAT IS THE TAKE AWAY FROM THESE MODELS AND ALMOST IMMEDIATELY ALIBABA Q1 MODEL. THE OVERARCHING CONCLUSION PEOPLE HAVE REACHED IS POTENTIALLY THESE ARE GOOD THINGS FOR CHINA'S HARDWARE ECOSYSTEM. TALK ABOUT CHINA'S CLOUD COMPUTING PROVIDERS, DATA CENTER PROVIDERS AND SEMICONDUCTOR MANUFACTURERS. THEY PROBABLY WON'T SEE EXPLOSIVE DEMAND IF CHINA'S MODELS ARE BECOMING ONE OF THE BEST IN THE WORLD. SO, THAT POTENTIALLY CAN PLAY UP THIS MORNING. DAVID: LOTS TO WATCH. LIANTING TU, OUR MANAGING EDITOR FOR ASIAN EQUITIES. THE OTHER BIG STORY, MARKETS ON THE MACRO SITE IS GRAPPLING WITH THE RE-ESCALATION OF TENSIONS. YOU HAVE TO LOOK AT THE MOST ACTIVE CONTACT IN BRENT. WE ARE BACK TO A $90 HANDLE. THE U.S. HAS LAUNCHED ITS NINTH WAVE OF ATTACKS ON IRAN AFTER THE DEATHS OF THREE U.S. TROOPS IN TWO DAYS. JILL DISIS IS HERE TO GET US UP TO SPEED ON THE LATEST. JILL: WERE ALREADY IN A PERIOD WHERE IT SEEMED LIKE THE NEGOTIATIONS OVER THE TRUCE, THE PEACE DEAL WERE KIND OF FALLING APART. NOW WE ARE IN A STAGE WHERE WE ARE SEEING THE CONTINUED ESCALATION, THE DEATHS OF THOSE SERVICE MEMBERS. TWO SERVICE MEMBERS KILLED IN JORDAN ON FRIDAY. THE U.S. CLAIMING THAT WAS RELATED TO AN ATTACK BY THE IRAN REVOLUTIONARY GUARD. ANOTHER SERVICE MEMBER KILLED OVER THE WEEKEND IN IRAQ. THE SERVICE MEMBER WAS APPARENTLY TRYING TO DECOMMISSION AN IRANIAN DRONE THAT HAD NOT EXPLODED. WE ARE SEEING THOSE ATTACKS. THE OTHER THINK TO POINT TO IS IT SEEMS THAT MANY OF THESE ATTACKS HAVE EXPANDED BEYOND JUST MILITARY TARGETS AND NOW WE ARE SEEING PLACES TARGETED FOR BRIDGES, INFRASTRUCTURE, SOME ATTACKS IN KUWAIT TARGETING WATER AND POWER DESALINATION PLANTS. WHAT YOU ARE SEEING IS THIS STAGE IN FIGHTS WHERE IT SEEMS LIKE WE ARE NOW STARTING TO SPREAD IN TERMS OF THESE DIFFERENT TYPES OF TARGETS. IT IS UNCLEAR AT THIS POINT WHETHER OR NOT WE ARE ACTUALLY ON TRACK TOWARDS NEGOTIATING ANY KIND OF PEACE DEAL. THE LAST THING OF NOTE IS THE IRANIAN FOREIGN MINISTER HAS SAID RECENTLY THAT THOSE NEGOTIATIONS OVER NUCLEAR POWER SEEM TO BE UNSOLVABLE. DAVID: MARKETS ARE HAVING TO FIGURE OUT, MAKE THEIR OWN CONCLUSION ABOUT WHAT'S GOING ON SIMPLY BY LOOKING AT WHAT'S HAPPENING, AND NOT SO MUCH NORMALLY WHERE YOU WOULD TURN TO WHICH IS WHAT THE U.S. PRESIDENT IS SAYING BECAUSE HE'S BEEN AWFULLY QUIET AROUND WHAT'S GOING ON. JILL: THAT'S RIGHT. WE HAVEN'T HEARD ANYTHING FROM DONALD TRUMP IN RECENT DAYS ABOUT THE CONFLICT. THAT IS KIND OF LEAVING US IN A POSITION WHERE IT IS NOT SURE WHAT THE LATEST U.S. MILITARY STRATEGY IS GOING TO BE. AGAIN, YOU CAN TAKE CLUES THAT THERE IS THIS RE-ESCALATION IN TENSIONS JUST FROM WHAT WE'VE BEEN DISCUSSING, THE DEATHS OF THE U.S. SERVICE MEMBERS, THE WIDENING OF ATTACKS, HITTING OTHER TYPES OF INFRASTRUCTURE. THE FACT THAT THE U.S. HAS LAUNCHED ITS NINTH SERIES OF ATTACKS. BUT WE HAVEN'T HEARD ANYTHING FROM THE U.S. PRESIDENT HIMSELF. HE'S BEEN QUIET. HE SPENT THE WEEKEND IN NEW JERSEY. HE WENT TO THE WORLD CUP GAME, WAS PRESENT ON STAGE THERE. IN TERMS OF COMMENTING ON THE SERVICEMEMBER DEATHS OR COMMENTING MORE BROADLY ON THE U.S.'S ATTACK STRATEGY OR NEGOTIATION STRATEGY, WE'VE HEARD NOTHING. IT AGAIN BECOMES CONCERNING US TO TRY TO FIGURE OUT WHERE THE TRAJECTORY OF THIS WAR ULTIMATELY GOES BECAUSE THIS HAS BEEN GOING ON SINCE FEBRUARY. WE'VE BEEN IN THIS BACK AND FORTH FOR SEVERAL MONTHS, IS THERE A TRUCE? ARE THERE NEGOTIATIONS TOWARD SOMETHING THAT WILL FEEL LONGER-LASTING? AT THIS POINT, THERE IS NO INDICATION. DAVID: JILL DISIS, OUR NEWS DESK MANAGING EDITOR. THE LATEST COMMENTARY COMING THROUGH THE U.S. MILITARY AS FAR AS THE STATEMENT IS CONCERNED. JUST AHEAD HERE, WHAT DO YOU DO WITHOUT OUGHT -- WITH ALL THAT INFORMATION? THE REARING OF THE UGLY HEAD OF GEOPOLITICS, THE CHIP SELLOFF ACROSS THE WORLD. MAYBE TO A LESSER EXTENT IN THIS PART OF THE WORLD. AND THE NEW ITERATIONS OF CHINESE AI MODELS. STEFAN HOFER WILL JOIN US IN A COUPLE OF MINUTES. THE OPENING BELL IS JUST A COUPLE OF MINUTES AWAY. THIS IS THE CHINA SHOW. ♪ DAVID: ALL RIGHT, JUST UNDER 14 MINUTES OF THE OPENING BELL AS WE KEEP SEEING, WE ARE PRICED TO OPEN HIGHER. THIS MONDAY MORNING, THE DOWNDRAFT IS WHAT TOOK PLACE LAST WEEK WHERE CHIP STOCKS IN THE U.S. ENTERED A TECHNICAL BEAR MARKET. YOU ARE LOOKING AT CORRECTIONS ACROSS THE REGION. JAPAN, KOREA, JUT -- TAIWAN. JOINING US HERE ON SET IS CHIEF INVESTMENT STRATEGIST AT LGT PRIVATE BANKING. GOOD MORNING A NICE TO SEE YOU. THE CORE OF YOUR EQUITIES HOLDINGS IS REALLY IN THE U.S. >> THAT'S RIGHT. WHAT WE HAVE SEEN WITH THE CORRECTION AND TECHNOLOGY, WE PUT THAT INTO CONTEXT, THAT RUN-UP THAT TOOK PLACE IN SOME INCREDIBLE PLACES LIKE TAIWAN AND KOREA. IN THE WAY, IT WAS POISED FOR SOME PROFIT TAKING. THE BIGGER QUESTION THAT WE WILL GET MORE INSIGHT ON OVER THE NEXT WEEK AND NEXT WEEK IS THE EARNINGS SEASON. WHAT IS THE DEMAND? IS THERE DEMAND FATIGUE FOR SOME OF THE HARDWARE AND OTHER INFRASTRUCTURE THAT IS NEEDED FOR THIS GLOBAL AI RACE? OUR VIEW ON THIS IS DEMAND IS STILL THERE. THE RACE IS HEATING UP AND NOT COOLING DOWN. THE OUTLOOK FOR TECH IS ROBUST. BUT WE HAVE VOLATILITY ALONG THE WAY. DAVID: MARKETS HAVE SET SUCH A HIGH BAR ON EARNINGS. GIVING THE EXAMPLE LAST WEEK, SOLID RESULTS ONCE REACTED NEGATIVELY. WITH THIS BE A BUY THE DIP SITUATION AS FAR AS THE U.S. CHIP IF AND WHEN WE GET THAT SORT OF REACTION? STEFAN: I THINK SO. WHAT YOU HAVE NOW IS A RACE BETWEEN THE U.S. AND CHINA. THE REST OF THE WORLD HAS TO CATCH UP. AT THE END OF THE DAY WHETHER IT IS EUROPE OR JAPAN, IF YOU WANT A SEAT AT THE TABLE AND HAVE A ROLE TO PLAY IN THE FUTURE OF AI LEADERSHIP, ALL OF THOSE PLACES ARE MASSIVELY BEHIND THE TWO GIANTS IN TERMS OF INVESTMENT SPENDING. DEMAND IS OUTSTRIPPING SUPPLY FOR MOST OF THE HARDWARE. DAVID: OK, EM'S THEN. AND KOREA. STEFAN: THEY ARE A CONCENTRATED PLACE. YOU HAVE TO MANAGE YOUR PORTFOLIO DIVERSIFICATION OFF THE BACK OF THAT. BUT THEY ARE IN THE SWEET SPOT AS IT STANDS RIGHT NOW. THERE IS SUCH AN OVER DEMAND RELATIVE TO SUPPLY FOR THE PRODUCTS THEY ARE PRODUCING. THERE IS NO REAL INDICATION IN THE VERY NEAR TERM THAT THAT WILL CHANGE. HOWEVER, AS YOUR CHINA CORRESPONDENT JUST BEFORE THE SEGMENT, CHINA IS CATCHING UP. THE TIMEFRAME THAT WAS GIVEN IN THAT SEGMENT WAS 12 MONTHS. SOME PEOPLE THINK IT'S LESS THAN THAT, IT COULD BE SIX MONTHS. THIS IS A DYNAMIC SPACING TO HAVE TO BE NIMBLE AND OPEN TO THE IDEA THAT OTHER COMPANIES MAY COME IN AND TAKE OVER LEADERSHIP. REBECCA: STEFAN, REBECCA HERE. YOU HAVE BEEN TALKING ABOUT HEDGING RISKS RATHER THAN HEDGING RETURNS. DESCRIBE THE EFFICACY FOR A NIMBLE START. WHERE DO YOU SEE THE MARKET'S UNDERPRICING RISK? GEOPOLITICS? THE SO-CALLED DISRUPTIVE THE SEEK MOMENT 7.0 WHEREVER WE ARE? WHERE DO YOU SEE THE REAL RISKS? STEFAN: THERE IS A RANGE OF RISKS THAT WILL KEEP THE REST OF 2026 VERY VOLATILE. CLEARLY, WE ARE IN A TIGHT SPOT ONCE AGAIN WHEN IT COMES TO THE UNITED STATES AND IRAN. LOOK AT THE OIL PRICE. THAT IS A CLEAR SIGNAL OF WHAT IS HAPPENING THERE. IT IS FAR AWAY FROM THE MARCH HIGH. IT COULD CLIMB FURTHER THAN THAT. WE HAVE ANOTHER PHASE THAT IS TAKING PLACE IN THE UKRAINE RUSSIA WAR THAT INCREASES A BUNCH OF UNCERTAINTY THERE. LASTLY, THERE IS A HISTORIC PERIOD WHERE THE WHOLE WEIGHT OF THE FEDERAL RESERVE'S FUNCTIONING IS BEING REWIRED IN REAL TIME. THERE ARE A LOT OF THINGS FOR INVESTORS TO HAVE TO DIGEST. AT THE END OF THE DAY, IF YOU ARE AN EQUITY INVESTOR, YOU HAVE TO ASK YOURSELF THE SAME QUESTION EVERY DAY WHEN YOU LOOK AT YOUR PORTFOLIO. IS WHAT I UNLIKELY TO HAVE POSITIVE EARNINGS GROWTH OR NOT? IF THE ANSWER IS YES, THAT INCLUDES TECH AND FINANCIALS AND A BUNCH OF OTHER SECTORS AS WELL, WE ARE STILL ADVOCATING THAT INVESTORS TAKE ON EQUITY RISK. WE ARE OVERWEIGHT THERE AND FOCUSED ON THE FUNDAMENTALS. 2026 WILL CONTINUE TO BE A WILD RIDE AND HEDGE WHERE YOU CAN. HAIDI: THERE IS -- REBECCA: THERE IS STILL THIS RISK COMING DOWN THE PIPELINE OF STAGFLATION. HIGH DIVIDEND STOCKS AND ALL OF THESE DIFFERENT WAYS OF NAVIGATING THAT STAGFLATION. WHICH OF THESE OFFERS THE BEST RISK REWARD IF IT PROVES THAT INFLATION IS STICKIER THAN EXPECTED? STEFAN: THIS IS A REALLY TOUGH AND VERY IMPORTANT QUESTION. U.S. INFLATION IS BASICALLY RUNNING HOT. CORE IS AT A RUN RATE OF 3%. THAT IS TOO HIGH BY MOST PEOPLE'S UNDERSTANDING OF WHERE U.S. INFLATION WOULD BE. I DON'T THINK THERE IS ONE PERFECT SILVER BULLET TO HANDLE THAT. AS YOU MENTIONED, THERE ARE A RANGE OF STRATEGIES INVESTORS CAN CONSIDER. INFRASTRUCTURE, REAL ASSETS, COMMODITIES. IN SOME ASPECTS, GOLD. ABOUT THE ASSETS ARE THE HIGH DIVIDEND EQUITY STRATEGIES WHICH HAVE ACTUALLY PERFORMED REALLY WELL SO FAR THIS YEAR AND ARE DOING WHAT THEY ARE MEANT TO DO. IT IS A TOUGH ENVIRONMENT. YOU HAVE A DIVERSITY OF THOSE KINDS OF STRATEGIES. WE THINK YOU CAN MAKE DECENT MONEY IN 2026. DAVID: YOU MADE A VERY GOOD POINT. LOOK AT YOUR EARNINGS AND WHERE THE EARNINGS ARE VISIBLE. CHINA DOES NOT SEEM TO BE ON THAT SIDE OF THE EQUATION JUST YET. STEFAN: LET'S TAKE THE ELECTRIC VEHICLE SECTORS AS A GOOD EXAMPLE OF THIS. YOU HAVE AN AMAZING PRODUCT. A HYPERCOMPETITIVE PRODUCT COMING OUT OF CHINA. THEY ARE PRICING NOT NECESSARILY FOR PROFIT MAXIMIZATION. MAYBE THAT WILL COME AT A LATER STAGE. THERE IT IS KIND OF A LONGER STORY IN THE MAKING. BUT I THINK WE CAN EASILY LOOK AT WHERE THE CHINESE TECH IS STANDING TODAY WHETHER IT IS AI, ROBOTICS, EV. THESE ARE LONG-TERM PLAYS THAT ARE EXCITING. BUT FROM A PROFITABILITY POINT OF VIEW, IT IS ELSEWHERE RIGHT NOW. DAVID: FANTASTIC. HAVE A GREAT WEEKEND. CHIEF INVESTMENT STRATEGIST AT LGT PRIVATE BANKING. ALIBABA UP 3% IN THE PREMARKET AND WE HAVE LOTS MORE AHEAD ON THE CHINA SHOW. THIS IS BLOOMBERG. ♪ DAVID: WE ARE GOING TO GO THROUGH THE EARLY MOVES IN THESE MARKETS. WE ARE UPSET THROUGH -- WE WILL GET TO THE ALIBABA STORY IN A MOMENT BUT IN TERMS OF MARKET, IT IS QUITE A POSITIVE DISTRIBUTION OF MOVES TO THE UPSIDE. WE ARE UP 73 IN THE HANG SENG INDEX IN THE EARLY GOING. ALIBABA OF COURSE, THAT UNVEILING. THE PREVIEW OF THE LATEST AI MODEL. THIS IS OBVIOUSLY SEPARATE TO WHAT WE GOT OUT OF MOONSHOT. AND ON MOONSHOT ITSELF IN OUR REPORTING, IT IS IDEAL FOR THE NEXT SIX MONTHS OR SO. WE ARE COMING OFF BOTH OF THE AI PLACE IN HONG KONG ON FRIDAY. QUITE A STEEP DECLINE. SOME SEMBLANCE OF STABILITY. OIL AND BRENT, ENERGY COUNTERS HERE IN HONG KONG ARE ALSO MOVING TO THE UPSIDE TODAY. A VERY BRIEF LOOK AT THE EARLY GOINGS. WE ARE FOLLOWING THE BIGGEST DROP ON PRICE SINCE LIBERATION DAY. WE ARE HIGHER 1%, SO THE MAIN BENCHMARK IN THE OPENING BELL IS COMING UP NEXT. THIS IS THE CHINA SHOW. ♪ REBECCA: WELCOME BACK. WE ARE COUNTING DOWN TO A VERY BUSY OPEN THIS MORNING OF MARKETS EXPECTING -- WHAT A DAY. I WAS JUST THINKING BACK. WHEN WAS IT WE COVERED THE DEEPSEEK MOMENT 1.0? THAT ORIGINAL EVENT TO ROYAL MARKETS. WE WERE APPARENTLY CAUGHT BY SURPRISE THAT. IT IS INTERESTING TO SEE HOW THE READTHROUGH THIS TIME AROUND IS SO MUCH MORE GLOBAL. WE ARE SEEING CORRECTIONS, BEAR MARKETS HERE, THERE AND EVERYWHERE. SO MUCH READTHROUGH ALSO INTO THE REST OF THE WORLD. LOOK AT THE U.S. TRADE THAT CAME THROUGH THE FRIDAY AFTERNOON AFTER THE SELLOFF WE SAW IN CHINA. BIGGEST SELLOFF IN THE CSI 300 SINCE LIBERATION DAY. WE WILL SEE WHAT HAPPENS. WE MAY SEE THAT NATIONAL TEAM COMING BACK A LITTLE BIT. AND WITH THAT MEETING WITH THE TOP REGULATOR WITH BEIJING. DAVID: THAT IS BEING REPORTED TODAY OUT OF CCTV. CSRC WILL BE HOLDING THIS MEETING TO STABILIZE MARKETS. IT'S UNCLEAR TO ME SPECIFICALLY WHETHER THAT IS A SHORT-TERM LOOK BECAUSE IT WOULD HAPPEN ON FRIDAY OR IS IT MORE MEDIUM TO LONGER TERM. THAT IS TO SAY THE CONTEXT THE MARKETS ARE LOOKING AT IS THE WOBBLE WE HAD ON FRIDAY, AND AS REBECCA WAS POINTING OUT, IT WAS ABOUT ACROSS THE BOARD INCLUDING MAINLAND CHINESE MARKETS, INCLUDING THE DROP ON THE PHILADELPHIA SEMICONDUCTOR INDEX. WHEN YOU LOOK AT ASIA TODAY, AND WE ARE GETTING THESE ON YOUR SCREENS. UP 1.3% ON THE CSI 300. UP 1.6% IN TERMS OF HIGHER PRICING ON THE RETAIL. THE FLAGSHIP LIQUOR BRAND THERE. WHEN YOU LOOK AT HONG KONG, YOU HAVE MOONSHOT -- KIMI WAS THE STORY ON FRIDAY. IT BECAME ALIBABA AND THE UNVEILING OF PARAMETERS. VERY BASIC INSOFAR AS INFORMATION GOES. THEN, WE TURN OUR ATTENTION BACK TO MOONSHOT AI ON THE BACK OF ARE REPORTING THAT OVER THE NEXT SIX MONTHS, WE COULD SEE THAT MASSIVE LISTING. WHICH THEN GOES INTO THE BIG AI PLAYS YOU SEE ON YOUR SCREEN. KEEP IN MIND, THE LAST FEW DAYS HAVE SEEN A LOT OF BIG-NAME CHINESE COMPANIES BEING REPORTED TO WANT TO LIST OR ANNOUNCE THEY ARE LISTING. WE HAVE TALKED A LOT ABOUT CXMT, MOONSHOT AI. YOU HAVE TO WONDER COULD THAT BE DOWN TO LIQUIDITY STRESS, AND DOWN TO THE FACT THESE OTHER PLAYS HAVE DONE VERY WELL? LITHIUM AND SOLAR STOCKS COMING UP ON YOUR SCREEN. TAXES BE READ -- BEING REINTRODUCED HERE IN 2027. PART OF SOME OF THE ANNOUNCEMENTS. NOT A LOT OF REACTION HERE. GOING INTO THE SESSION TODAY, WE ARE LOOKING AT A LOT OF -- INCLUDING SOME TECHNICALS, MY BELIEF. REBECCA: YES, IT IS THE AI STORY, THAT IS THE BIG STORY. NOT JUST FOR OUR MARKETS, AS YOU WERE POINTING OUT. WE ARE SEEING THE AI RACE KICKING UP A GEAR. WE HAVE THIS NEW WAVE OF DOMESTIC MODELS THAT IS RAISING FRESH QUESTIONS. IT IS THE HARDWARE VERSUS SOFTWARE QUESTION. OF COURSE, THE READTHROUGH, CSI 300, CHINA X, THE 200 DAILY MOVING AVERAGE, T -- KEY TECHNICAL LEVELS WE ARE WATCHING. WHETHER WE SEE THAT COME BACK A LITTLE BIT MORE. THIS TURNOVER OF MAINLAND ETF'S, EIGHT OF THE ECF THAT ARE POPULAR WITH THE SO-CALLED NATIONAL TEAM OF BUYS. ENORMOUS TURNOVER NUMBERS. I THINK THE HIGHEST SINCE JANUARY. WE WILL CONTINUE TO SEE IF THERE'S THAT SUPPORT FOR THE MARKET, PARTICULARLY BECAUSE WE HAVE THE CSRC MEETING AROUND MARKET STABILIZATION COMING THROUGH TODAY REPORTED OUT OF CCTV. JUST ON THE BROADER MARKET AND OTHER NOTES WE ARE LOOKING AT, OIL OF COURSE, GIVEN THE STRIKES WE HAVE SEEN AND THE TIT-FOR-TAT RETALIATION BETWEEN IRAN AND THE U.S. THAT HAVE COME THROUGH. WE SEE, I THINK, THE SECOND PRICE HIKE IN ABOUT THREE MONTHS. IT IS VERY UNUSUAL. WE RARELY SEE PRICE HIKES BEFORE THIS. THE CHIP STORY. AS WE GO BACK WHERE WE BEGIN, IT IS AN AI STORY FOR TODAY ALL THE WAY, DAVE. DAVID: OK. I GUESS WE ARE REELING STILL FROM THE WORLD CUP IS OVER. A COUPLE OF PEOPLE WHO WERE UP EARLY ARE STILL UP. WHETHER THAT IS FEASTING ON YOUR PREFERENCE OF ALCOHOL OR A VERY EARLY COFFEE IN THE ASIA-PACIFIC. IT WAS A 3:00 A.M. MATCH. TO REBECCA'S POINT, FROM JULY 18, EFFECTIVELY ON THE WEEKEND, RAISING THE PRODUCT PRICE TO 163 9 PER BOTTLE. AN INCREASE FROM 227. THAT IS ABOUT 5 U.S. CHINEX GOING BACK TO THE FRIDAY SESSION AND THE DIP, FOR THE VERY FIRST TIME SINCE 2026. -- 2025. A LITTLE ABOVE THAT LAST I CHECKED GOING INTO THE SESSION TODAY. IT IS THIS PULLBACK WE ARE FOCUSED AND ON AND WHETHER THIS IS A BUYING OPPORTUNITY. LET'S BRING IN JASON LLOYD AT BNP PARIBAS. GOOD MORNING. WHAT HAPPENED ON FRIDAY? JASON: GOOD QUESTION. WHEN YOU LOOK AT THE PRICE ACTION, IT SEEMED LIKE AN ACROSS-THE-BOARD SELLOFF, NOT JUST GLOBAL TECH BUT ALSO ASIA TECH AND CHINA TECH. REBECCA MENTIONED EARLIER THAT LAST FRIDAY, WE HAD ONE OF THE LARGER MOVES WE HAVE SEEN IN THE CSI 300. WHAT IS INTERESTING IS THE REASON THAT COULD BE THE CASE IS BECAUSE OVER THE LAST SIX MONTHS, THE TECHNOLOGY SIDE OF CHINA HAS INCREASED SIGNIFICANTLY IN TERMS OF MARKET CAP AND TURNOVER. AS WE HAVE GONE THROUGH THE MONTH OF JULY, WE HAVE SEEN THE ENTIRE GLOBAL MARKET GET CONCERNED ABOUT THE HARDWARE VERSUS SOFTWARE DEBATE. WE'VE ACCUMULATED A LOT OF NERVOUSNESS HEADING INTO THE WEEK. WE HAD A FEW MODELS COMING UP THAT PROVIDED ANOTHER CATALYST FOR PEOPLE TO CONSIDER. WHEN YOU LOOK AT THE PRICE ACTION LAST FRIDAY, THE CHINA HARDWARE STOCKS SUFFERED THE MOST BECAUSE OF THAT BATTLE BETWEEN, OK, WHO'S NOW HAVING MORE VALUE OUT OF THIS AI SUPPLY CHAIN? DAVID: AGAINST THAT BACKDROP, WHAT DO YOU THINK THIS WEEK WILL LOOK LIKE? JASON: A COUPLE THINGS. FIRST, LAST WEEK FELT LIKE THERE IS SOME LIQUIDATION EVENT ACROSS THE MARKET. WE HAVE SEEN CERTAIN THINGS HAPPENING IN SOUTH KOREA AND OTHER MARKETS AS WELL. AS YOU REPORTED EARLIER, THERE IS SOME KIND OF GOVERNMENT MEETING THAT IS TRYING TO STABILIZE THE MARKET A LITTLE BIT. ULTIMATELY, IT COMES DOWN TO FUNDAMENTALS. SO FAR, ALL THE COMPANIES THAT HAVE REPORTED, THEIR EARNINGS ARE QUITE GOOD. AN INVESTOR IS ALWAYS TRYING TO BE FORWARD-LOOKING BUT WE HAVE NOT SEEN ENOUGH DEFINITIVE EVIDENCE HOW THIS WHOLE DYNAMIC WILL SHIFT. IT SEEMS THAT BASED ON THE LATEST REPORTING, THE GAP BETWEEN THE CHINESE MODEL AND THE FRONTIER MODEL IS SHRINKING BUT THERE IS STILL A GAP. HOW MUCH OF A GAP IS BEING PRICED INTO THE MARKET? NOT JUST IN ASIA BUT ACROSS THE ASIA TECHNOLOGY COMPLEX AS WELL. REBECCA: I WANT TO PUSH YOU A BIT. THERE'S A LITTLE BIT OF AN INFORMATION GAP HERE, BUT WHEN IT COMES TO THE HARDWARE VERSUS SOFTWARE DEBATE, WHEN IT COMES TO THIS QUESTION WHETHER DEMAND IS JUST GOING TO BE REDUCED AND THAT NERVOUSNESS, IS IT JUSTIFIED? HOW NERVOUS DO YOU THINK WE SHOULD BE AROUND THE ABILITY OF THESE FRONTIER CHINESE MODELS TO ESSENTIALLY DEFER TO SOFTWARE RATHER THAN RELYING ON SHIPS AND HARDWARE CHIPS? JASON: SURE. YOU HAVE A GREAT POINT ABOUT DEMAND. BASED ON WHAT WE'VE SEEN SO FAR, IT SEEMS ALL THESE CHINESE NEW OPEN WEIGHT MODEL, THEY DO HAVE LARGE PARAMETERS. WE ARE TALKING ABOUT TRILLIONS OF PARAMETERS, WHICH MEANS FROM A HARDWARE STANDPOINT, THEY WILL REQUIRE A LOT MORE HARDWARE. THE PROBLEM IS NOT ABOUT THE QUANTITY BUT THE PRICE. WE HAVE SEEN BASED ON THE COMPANIES THAT HAVE REPORTED EARNINGS FOR THE PAST ONE OR TWO MONTHS, THE GROSS MARGIN IS EXTREMELY HIGH FOR HER TO COME TO HARDWARE COMPANY. ONE OF THE THINGS THE MARKET IS TRYING TO DECIDE IS IF WE HAVE A TRANSITION FROM HIGH-MARGIN TO HIGHER VOLUME BUT LOWER MARGIN, IS THAT ENOUGH TO JUSTIFY SOME OF THE VALUATION WE HAVE SEEN NOT JUST IN CHINA BUT THE GLOBAL TECHNOLOGY HARDWARE SPACE? REBECCA: JASON, I JUST WANT TO FOLLOW UP ON THAT POINT. WHAT ABOUT THE CONCENTRATION RISKS WE ARE SEEING AROUND THE AI TRADE IN ASIA? HOW SHOULD INVESTORS BE MAKING SENSE OF THAT? JASON: I THINK YOU ARE RIGHT IN TERMS OF THE CONCENTRATION RISK. THIS IS PROBABLY MOST PRONOUNCED WHEN IT COMES TO MARKETS LIKE SOUTH KOREA AND TAIWAN. TO A LARGE EXTENT, JAPAN FOR THE NIKKEI INDEX. IT IS HEAVILY DRIVEN BY THE AI SENTIMENT AS WELL. WHAT WE DO KNOW THIS IS THAT WHAT INVESTORS TRY TO DE-RISK, THEY TRY TO LOOK ACROSS, OK, WHAT ELSE CAN I ROTATE INTO? IT IS AN INTERESTING DILEMMA BECAUSE WHEN YOU LOOK AT MARKETS LIKE SOUTH KOREA AND TAIWAN, THEY ARE HEAVILY DRIVEN BY TECHNOLOGY. BUT WHEN IT COMES TO JAPAN, ON -- UNTIL LAST FRIDAY, WE HAVE SEEN INVESTORS ROTATE INTO MORE DOMESTIC FACING SECTORS. THE CASE IS ALSO TRUE TO THE HONG KONG CHINA COMPLEX AS WELL BECAUSE WHEN WE LOOK AT THE PERFORMANCE OF THE INDICES COME UP THEY HAVE SEEN QUITE A BIT OF REBOUND, AS BOTH THE GLOBAL AND CHINESE INVESTORS START TO GRADUALLY ROTATE OUT OF THE HARDWARE INTO OTHER SECTORS OF THE MARKET. DAVID: YOU RECENTLY CAME FROM THE U.S.. I WOULD IMAGINE MOST OF YOUR, IF NOT IN YOUR CONVERSATIONS AROUND AI, THE FIRST THING IS WHAT IS THE TAKE AWAY AS FAR AS INVESTMENT STRATEGY IS CONCERNED? AS WE SEE MORE AND MORE OF THESE DEVELOPMENTS IN CHINA, WHETHER THAT IS MODEL COMPETENCY OR THE CLOSING OF SOME BOTTLENECK, THE HARDWARE STACK -- DO I LOOK AT CHINA AS A THREAT TO THE U.S. BULL MARKET OR CAN BOTH COEXIST? JASON: I THINK ONE OF THE BIGGEST POINTS I'VE NOTICED IS THAT INVESTORS NO LONGER LOOK AT AI FROM A GEOGRAPHIC STANDPOINT. EVERY INVESTOR I MET HAS A GLOBAL AI VIEW IN MIND. BECAUSE OF THAT, THEY HAVE NO CHOICE BUT TO LOOK AT EUROPEAN, U.S. AND ASIA TECH TOGETHER. I THINK CHINA TECH IS A LITTLE DIFFERENT BECAUSE THEY HAVE THEIR OWN ECOSYSTEM BUT VERY FEW INVESTORS TOLD ME I CAN ONLY INVEST IN THE U.S. WHEN THEY LOOK AT ASIA, IT IS A SIMPLE EXTENSION OF THE TRADES THEY ALREADY HAVE IN THE U.S. BUT BECAUSE THEY ARE BENEFITING FROM THE ENTIRE SUPPLY CHAIN GOING UP, THEY ARE VERY FOCUSED. WHEN IT COMES TO CHINA ONSHORE, THERE IS THIS RISING ACKNOWLEDGMENT THAT THE TECHNOLOGY DEVELOPMENT AND CHINA HAS BEEN VERY STRONG. I THINK DUE TO GEOPOLITICS OR INFORMATION BARRIERS, THEY ARE STILL HESITANT TO GO VERY ACTIVE BECAUSE I THINK THEY STILL WORRY WHAT IF THERE ARE SOME ADDITIONAL GEOPOLITICAL RISKS? WHEN IT COMES TO INTEREST IN ASIA, THEY BASICALLY LOOK AT IT AS ONE BIG GLOBAL TRADE RATHER THAN DIVIDING GEOGRAPHY. DAVID: JASON, THANK YOU SO MUCH. HAVE A GREAT WEEK AHEAD. JASON LIU AT BNP PARIBAS. WE DO HAVE SOME BREAKING NEWS. WE ARE HEARING NOW FROM MARCO RUBIO. HE IS TRAVELING TO THE ASIA PACIFIC. LET ME GET THE LATEST INFORMATION. NUMBER ONE, HE DOES ANTICIPATE THE VISIT OF CHINESE PRESIDENT XI JINPING WILL HAPPEN. IT IS THE BROADER EXPECTATION THAT IT WILL TAKE PLACE IN THE LATTER PART OF SEPTEMBER. POINT NUMBER TWO, THE LATEST COMING THROUGH THAT CHINA IS SENDING TEAMS TO PREPARE FOR THAT U.S. TRIP. IN CASE YOU ARE WONDERING WHY PERHAPS WE ARE GETTING MORE COMMENTARY COMING THROUGH ALONG THESE LINES, IT'S IMPORTANT FOR CHINA TO CONTINUE TALKING. IF YOU JOINED US ON FRIDAY, THE PRIMETIME BRIEFING OUT OF THE WHITE HOUSE WITH PRESIDENT TRUMP ACCUSING CHINA OF MEDDLING IN THE U.S. ELECTIONS, QUESTIONS AROSE, MAY MORE PAST TENSE THAN PRESENT TENSE, WHETHER THAT WOULD BE REAL, THIS CURRENT DETENTE AND THE UPCOMING TRIP. SO FAR, THE U.S. SECRETARY OF STATE IS POURING COLD WATER ON THAT SPECULATION. HE IS SAYING THAT THE U.S. TRIP BY CHINESE PRESIDENT XI JINPING IN SEPTEMBER WILL HAPPEN. WE HAVE LOTS MORE COMING UP HERE ON "THE CHINA SHOW." ♪ DAVID: GOOD MORNING AND WELCOME BACK. YOU ARE WATCHING "THE CHINA SHOW ." A BRIEF LOOK AT MARKETS. WE ARE GETTING A VERY DECENT BALANCE FOLLOWING THE ROUTE ON FRIDAY. WE WILL TRACK WHAT HAPPENS IN THE MARKETS. WE CONTINUE OUR COVERAGE IN SHANGHAI. MINMIN LOW IS ON THE GROUND FOR US WITH HER NEXT GUEST. MINMIN: HEY, DAVID. ROBOTS ARE ON FULL DISPLAY AT THE WORLD AI CONFERENCE. I AM JOINED BY THE CHINA PRESIDENT OF ABB ROBOTICS. WE ARE RIGHT HERE AT YOUR BOOTH. TELL US ABOUT THE BREAKTHROUGHS IN THIS FIELD. >> THE AUTONOMOUS ROBOTS. WE ARE FEATURING OUR NEWEST DEVELOPMENT. SOMETHING WE HAVE DEVELOPED TOGETHER WITH NVIDIA. IT ENABLES US TO USE REAL-LIFE DATA FOR THE ROBOTS AS FAR AS BEING PHYSICALLY DEPLOYED OFF THE PRODUCTION LINE. THIS ALLOWS CUSTOMERS TO SAVE EFFORT FROM A STARTUP. 50% TO THE MARKET. MINMIN: THAT IS A TREMENDOUS COST SAVINGS. GIVEN SO MANY IN THIS SPACE, WHAT ARE SOME OF THE CHANGING TRENDS YOU ARE SEEING WITH INDUSTRIAL ROBOTICS? HENRY: OUR CUSTOMERS WANT THE ROBOT TAILOR-MADE TO THEIR APPLICATION. A LOT OF DEMAND FOR AI POWERED ROBOTICS. MINMIN: A LOT MORE CUSTOMIZATION. THAT MEANS YOU INVEST MORE IN R&D. TELL US ABOUT YOUR CAPEX. HENRY: WE HAVE A MEGA FACTORY IN CHINA. FROM DECEMBER 2022. WE HAVE 300 ENGINEERS IN THIS FACILITY. ALL OF THIS GIVES US THE CAPABILITY TO PROVIDE A FULL CHAIN OF ROBOTS. WE HAVE MOBILE ROBOTS. THE GAMING CUSTOMER CAN HAVE A DIFFERENT MATURITY LEVEL. MINMIN: I WAS LOOKING AT YOUR EARNINGS. YOUR REVENUE DECLINE IN 2024. 2025 WAS FLAT. HOW ARE THINGS LOOKING? IS IT RECOVERING THIS YEAR? HENRY: VERY MUCH SO. WE CLOSED OUR HIGHEST PRODUCTION QUARTER IN HISTORY. WE ARE NOW IN QUARTER 3. WE ARE SEEING DEMAND PICKUP. WE THINK WE WILL HAVE A FANTASTIC 2026. MINMIN: HOW ARE YOU GOING TO COMPETE AGAINST ALL THESE CHINESE STARTUPS. THERE ARE SO MANY HERE. COST, CUSTOMIZATION, SCALE? HENRY: IT IS GREAT TO BE IN THIS ENVIRONMENT. OUR SUPPLY CHAIN IS LOCALIZED. 80% WITH SOURCE FUNDED CHINA. 90% DELIVERED FOR CUSTOMERS ARE MANUFACTURED AT THE PLANT. THIS IS THE ENVIRONMENT TO BE IN THIS BUSINESS. THERE IS FURIOUS COMPETITION BUT ABB IS BRINGING 50 YEARS OF EXPERTISE IN MOTION CONTROL. COUPLED WITH OUR LATEST AI TECHNOLOGY AND WORKING WITH OUR PARTNERS LOCALLY AND INTERNATIONALLY. WE ARE VERY CONFIDENT WE WILL HAVE OUR NEXT CHAPTER. MINMIN: ARE YOU PLANNING TO GO INTO HUMANOID ROBOTICS? HENRY: WE HAVE SOME RESEARCH INTO THAT FIELD, FOR SURE, BUT WE HAVE NOT YET DEVELOPED THE SO-CALLED -- HUMAN KNOWLEDGE IN THE MARKET. OUR MISSION -- A HUMANOID IS READY FOR THAT. THE AUTONOMOUS ROBOT PROGRAM -- THE ROBOT ON THE PLATFORM, VERY SOON THIS YEAR. THAT IS WHAT PEOPLE THINK HUMANOIDS NEED TO BE DOING. MINMIN: YOU MENTIONED EARLIER YOU HAVE THREE GLOBAL MEGA FACTORIES BUT THE SHANGHAI ONE IS THE MOST ADVANCED. TELL ME WHAT IS ADVANCED ABOUT THE SHANGHAI FACTORY. WHAT ARE YOU LEARNING FROM SHANGHAI THAT YOU ARE APPLYING TO THE REST OF THE WORLD? HENRY: WE HAVE MANUFACTURING BASES IN SWEDEN AND CHINA. SHANGHAI IS THE BIGGEST AND MOST ADVANCED SO FAR. THIS FACTORY, INSTEAD OF USING THE TRADITIONAL ASSEMBLY LINE, WE ARE DIGITALLY CONNECTED WITH A NETWORK THAT IS SERVED BY AUTONOMOUS MOBILE ROBOTS BRINGING THE PARTS AROUND ASSEMBLY THEMSELVES. THAT CUTS BY 50%. IT BOOSTS PRODUCTION CAPACITY BY 300%. NOW WE ARE BUILDING UP IN SWEDEN. ALL THE IN CHINA. WE BRING THAT BACK TO SWEDEN WHERE THE ABB ROBOTS WERE BORN. MINMIN: I UNDERSTAND THERE IS A DEAL GOING ON WITH ABB ROBOTICS POTENTIALLY BEING SOLD TO SOFTBANK. ARE THINGS ABOUT TO BE CONCLUDED? HENRY: WE ARE STILL IN THE REGULATORY REVIEW PHASE. WE ARE STILL WORKING ON IT. WE ARE CONFIDENT WE CAN CLOSE THE DEAL IN THE SECOND HALF OF THIS YEAR. MINMIN: CAN YOU SHARE WHAT WAS THE REASON UNDERPINNING THIS A SPIN OFF? WAS IT BECAUSE ABB IS UNDER PERFORMING SOME OTHER SECTORS LIKE ELECTRIFICATION? HENRY: THE REACTION WHEN ABB FIRST WANTED TO COME OUT WITH ROBOTICS AND LISTED IT AS A COMPANY, THE PROFILE OF THIS BUSINESS IS VERY DIFFERENT FROM THE REST OF ABB'S BUSINESS. OUR PROFIT MARGIN IS LOWER BECAUSE OF THE COMPETITIVE OF THE BUSINESS. THE CAPITAL REQUIREMENTS WITH AI. ABB THINKS IT IS BETTER FOR US TO STAND ALONE. A COUPLE MONTHS AFTER WE MADE THE DECISION, SOFTBANK CAME ALONG. MINMIN: THANK YOU SO MUCH. THIS IS HENRY HAN, THE VICE PRESIDENT AT ABB ROBOTICS. A COMPETITIVE LANDSCAPE WITH ROBOTICS IN CHINA. REBECCA: THANK YOU. YOU GET A SENSE OF JUST HOW MANY PLAYERS ARE IN THIS VERY CROWDED SEEN. WE WILL HAVE MORE FROM THE WORLD AI CONFERENCE COMING UP. IN THE NEXT HOUR WE WILL SPEAK WITH CEO ALLEN ZHANG ON WHAT HE THINKS ROBOTS CAN BE USED TO BEAT CHINA'S DEMOGRAPHIC DECLINE. THIS IS BLOOMBERG. ♪ DAVID: WELCOME BACK. WE ARE COMING UP TO THE FRIDAY SESSION, WHICH IS USEFUL BACKGROUND TO UNDERSTAND THE INDEX ITSELF. KEEP IN MIND WE ARE COMING OFF THE WORST DAY OF THE CSI 300 GOING BACK TO LIBERATION DAY. MARKET BREADTH IS NOT COMPLETELY POSITIVE ACROSS THE BOARD. WHEN YOU LOOK AT CHIPS, COMING UP ON YOUR SCREEN CLOSELY, EXTENDING THE LOSSES. UNDERSTANDING WHERE WE ARE WITH THE IRAN SITUATION BECAUSE WE HAVE NOT HEARD SPECIFICALLY FROM THE U.S. PRESIDENT. WE ARE HEARING FROM MARCO RUBIO AT THE JOINT AIR FORCE BASE ANDREWS, TALKING ABOUT HOW THEY ARE LOOKING TO RESPOND TO WHAT IS HAPPENING FROM THE IRANIAN SIDE OF THINGS. BRENT, $90 ON YOUR SCREEN. THE BALANCE YOU ARE SEEING ACROSS THE MARKET, NOT ALL BECAUSE OF GEOPOLITICAL REASONS, YOU SEE SOME OF THE MOVERS WITH THE HANG SENG INDEX. ALIBABA IS VERY MUCH IN FOCUS. A MOVE DOWN ON FRIDAY. A MASSIVE MOVE UP TODAY ACROSS THAT SPECIFIC BENCHMARK. CHINESE BENCHMARKS, 25 MINUTES INTO THE SESSION. THIS SOUTH KOREA GAP, IT IS NOW HEADING BACK TO WORK SESSION LOWS. WE HAVE MUCH MORE AHEAD IN THE SECOND HOUR OF "THE CHINA SHOW." ♪ REBECCA: GOOD MORNING AND WELCOME BACK. IT HAS BEEN A VERY BUSY MORNING. A QUICK PEEK AT THE CSI 300 A HALF HOUR INTO THE SESSION. UP MORE THAN 1.5%. JUST SHY OF 2. IT IS A FRIDAY AND WEEKEND STORY COMING THROUGH THESE TWO FRONTIER MODELS. MOONSHOT AND ALSO THE PREVIEW OF THE ALIBABA LATEST MODEL COMING THROUGH, AND REALLY HELPING PROVIDE A LITTLE BIT OF A BOOST AFTER WE SAW THAT ROUT ON FRIDAY. A BIT MORE INFORMATION COMING THROUGH THE MARKET ON THE CHINA SIDE BUT MORE BROADLY, WE STILL ARE SEEING THIS DISRUPTION ELSEWHERE IN ASIA. STILL SEE INVESTORS TRYING TO LET IT PERCOLATE, REALLY TRY TO MAKE SENSE OF WHAT IT MEANS IF WE SEE SOFTWARE UNDERCUTTING THAT DEMAND FOR CHIPS. DAVID: ABSOLUTELY. YOU'RE RIGHT. I THINK WE HAVE A LITTLE MORE CLARITY ON THE CHINA SIDE OF THE STORY IN TERMS OF THIS OVERALL CLOSING THE GAP. WHETHER THAT IS MODEL COMPETENCY. WE KNOW THE COST ADVANTAGES. CLOSING SOME OF THE BOTTLENECKS ON A HARDWARE STACK, FOR EXAMPLE. I THINK WHEN YOU LOOK AT A MARKET LIKE KOREA, THE MASSIVE DROP WE HAD ON FRIDAY, IT DOES NOT HELP WHEN KOREA WAS SHOT ON FRIDAY. IT'S REOPENED TODAY. JAPAN WAS UP AND RUNNING. YOU HAVE TAIWAN WHICH FELL 6%. TSMC EARNINGS. WE ARE PLAYING A BIT OF CATCH-UP WHEN IT COMES TO T MINUS ONE IN TERMS OF PRICE ACTION. YOU HAVE WHAT'S HAPPENING IN THE MIDDLE EAST AND YOU SIMPLY HAVE TO LOOK AT THE STRIKES BETWEEN THE TWO. NOT SO MUCH GUIDE AND FROM THE WHITE HOUSE BECAUSE WE ARE NOT GETTING MUCH GUIDANCE COMING FROM THE PRESIDENT. BRENT AT $90 IS A NET NEGATIVE THEN IT IS THE OPPOSITE. WHEN YOU LOOK AT THE FX COMPLEX, THE DOLLAR TO STRONGER AGAINST ALMOST EVERYTHING WITH THE EXCEPTION OF OIL RELATED CURRENCIES. I THINK THAT IS COMING UP ON YOUR SCREEN, LIKE THE CANADIAN DOLLAR AND NORWEGIAN KRONE. WE ARE FLAT ACROSS DOLLAR CHINA. TAIWAN AND SINGAPORE ON YOUR SCREENS. ON KOREA, WHICH IS INTERESTING. WE GOT LOWER, ALMOST COMPLETELY A RACE LOSSES AND THEN LAST WE CHECKED, WE ARE NOW DOWN ONLY 3% ON THE KOSPI INDEX. WHICH I THINK IS MAY BE INDICATIVE OF IS THIS THE LEADING INDICATOR OF GLOBAL MARKETS CURRENTLY? DAVID SAVAGE IS WITH US ON SET. HEAVY DECLINES LAST WEEK. IS THE WORST OVER IN TERMS OF THE DELEVERAGING STORY AND HOW PEOPLE ARE FUNDING SOME OF THIS ROTATION? DAVID S.: WE'VE HAD THE KOSPI DOWN SIX OF THE LAST SEVEN WEEKS, I THINK. IT IS OFF ABOUT 25% FROM ITS HIGH IN LATE JUNE. THAT TYPE OF DECLINE IS CERTAINLY GOING TO INVITE SOME DIP BUYING. AND I THINK WE ARE SEEING A MORE NUANCED MARKET REACTION TODAY VERSUS FRIDAY. BUT I THINK THE POINT OF CAUTION IS TO SAY WE READ UP SO FAR, SO FAST AND PERIODS OF DELEVERAGING CAN LAST LONGER THAN I THINK MARKET SOMETIMES EXPECT. AND OF THE RETAIL TRADE THAT ONLY A FEW MONTHS AGO WAS VERY POPULAR. SILVER IS STILL OFF 15% FROM ITS PREVIOUS PEAK. IT IS NOT COMPLETELY PERFECT COMPARISON BUT IT IS ANOTHER TRADE THAT GOT VERY POPULAR WITH RETAIL. IT GOT VERY LEVERAGED AND UNWOUND VERY QUICKLY. AFTER THAT, IT CONTINUED TO SLIDE. I THINK TODAY, THERE IS A LOT OF UNDER THE HOOD, A LOT OF DIFFERENT MOVES HAPPENING PARTICULARLY IN TECH. DAVID I.: TALK ABOUT THAT BECAUSE SOME OF THE LATEST DEVELOPMENTS COMING OUT OF CHINA HERE. DAVID S.: YEAH, I THINK IF YOU LOOK AT IT -- FRIDAY, EVERYTHING KIND OF GOT SOLD. HANG SENG TECH INDEX WHICH HAS NOT PERFORMED PARTICULARLY WELL WAS SOLD, AS WAS TAIWAN'S TAIEX INDEX WHICH WAS DOWN 6.5%. ITS WORST DAY SINCE APRIL 2025. ON THE NEGATIVE SIDE, THE FACT THAT THE TAIEX IS MANAGING -- I THINK IT IS FLAT NOW BUT IT WAS SLIGHTLY LOWER. EVEN THOUGH TSMC WAS HIGHER. AFTER THAT KIND OF DECLINE, THAT IS NOT A PARTICULARLY BULLISH SIGN. THE HANG SENG TECH INDEX IS LOOKING VERY STRONG. LEADING THE WAY IS ALIBABA. GIVEN ITS ROLE IN BOTH OF THESE TWO FRONTIER MODELS, I THINK THAT IS AN INTERESTING SIGN. ON THE KOSPI, IT IS STILL A MIXED BAG. TRADING LOWER, PERHAPS NOT AS LOW AS WE MIGHT HAVE THOUGHT GIVEN THE DECLINES ON FRIDAY BUT I THINK A MORE NUANCED -- NUANCED PICTURE. DAVID I.: DAVID SAVAGE, THANK YOU SO MUCH. WE TALKED ABOUT THIS, IT IS NOT JUST THE TECH STORY. IT IS WHAT WE ARE GETTING FROM THE ENERGY MARKETS TODAY. REBECCA: THAT'S RIGHT AND WE ARE NOT GETTING MUCH CLARITY OUT OF THE WHITE HOUSE OR OUT OF TRUMP HIMSELF AT THIS POINT. BRENT CRUDE ABOVE $90 A BARREL, THE HIGHEST IN A MONTH, AFTER THIS TIT-FOR-TAT WE HAVE SEEN IN THE IRAN WAR. WE ARE JOINED BY BLOOMBERG GLOBAL OIL TRADING REPORTER. TALK US THROUGH WHAT WE ARE SEEING. I SUPPOSE HOW MUCH FURTHER WE COULD GO. >> THE BIGGEST THING HAPPENING IT WILL MARKETS, THE ATTACKS OVER THE WEEKEND. FOR A WHILE, THE PAST FEW WEEKS, THERE HAS BEEN NOT AN IMPROVEMENT OF THE WAR BUT THERE WAS A SENSE THAT THERE WAS A CEASE-FIRE, FEWER ATTACKS AND MORE SHIPS WERE GOING THROUGH. ALL OF THAT IS BASICALLY OUT THE WINDOW. WE'VE HAD FRESH ATTACKS BETWEEN THE U.S. AND IRAN. WHILE IT IS STILL UNCLEAR THE EXTENT TO WHICH VESSEL TRAFFIC AND DEALS ARE UNPACKED, WE SEE THAT PRICES ARE RISING. THE BIGGEST CONCERN THAT OIL TRADERS HAVE IS SIMPLY WHETHER OR NOT THE CARGOES GO. THOSE ARE SET TO ARRIVE. PEOPLE ARE WONDERING WHETHER OR NOT THERE WILL BE DELAYS. DURING THAT LULL PHASE, THERE WAS LOTS OF BUYING A GUN FOR SUPPLIES TO ORIGINATE INSIDE THE PERSIAN GULF. THAT IS ALL SET TO COME OUT, SO POTENTIAL DELAYS. SAUDIS HAVE A BIG PIPELINE THAT GOES UP THE RED SEAT. SUPPLIES HAVE COME OUT OF A PORT WHICH DOES NOT HAVE TO USE THE STRAIT OF HORMUZ. IRAN HAS SHOWN THAT THEY CAN STRIKE TARGETS FURTHER , THERE'S A LOT UP IN THE AIR. REBECCA: JUST TO PICK UP ON YOUR POINT ABOUT THE LULL PERIOD WE'VE GONE THROUGH. WE HAVE SEEN THIS STUTTER, START, STUTTER. THE U.S. ENDING THE WEEKEND WAVE OF STRIKES, PERHAPS OFFERING THIS BRIEF WINDOW OF REPRIEVE. AS YOU SAY, THERE ARE THESE ALTERNATIVE PIPELINES AND ROUTES . HOW WEEKLY CAN THOSE SURFACE IF WE DO CONTINUE TO SEE THIS ON/OFF MECHANISM IN THE WAR? YONGCHANG: THIS STOP/START THING -- IT IS GREAT STRIKES HAVE ENDED FOR NOW BUT OIL TRADERS DON'T LIKE THIS KIND OF UNCERTAINTY. THERE HAVE BEEN WORKAROUNDS, NOT JUST IN THE MIDDLE EAST. OIL TRADERS HAVE BEEN BUYING U.S. SUPPLY, BRAZILIAN SUPPLY. WE ARE FIVE MONTHS INTO THE WAR NOW. IT HAS NOT BECOME -- THE PROBLEM IS BY NOW, LOTS OF GLOBAL INVENTORIES HAVE BEEN DRAWN DOWN. A LOT OF U.S. BUYING HAS ALREADY OCCURRED. A LOT OF U.S. SEAPORT EXPORTS, IT IS TOO STRONG TO SAY THEY HAVE FOUND A CEILING, BUT THERE ARE QUESTIONS ABOUT HOW MUCH MORE THEY CAN RISE. THERE ARE THINGS THAT ARE GOING ON. MAY USING LESS PETROL AND GASOLINE AND THEIR CARS. THERE ARE WORKAROUNDS, BUT THERE IS A LIMIT TO THESE. MAYBE IT IS TOO SOON TO SAY WE HAVE HIT THE CEILING, BUT THERE ARE LIMITS AND PEOPLE ARE TRYING TO FIND WHEN AND WHERE. REBECCA: A QUESTION OF WHETHER OR NOT WE HAVE HIT THAT LIMIT WHEN IT COMES TO RESILIENCE AND CHASING THAT DIVERSIFICATION. THANK YOU, YONGCHANG CHIN, FOR US IN THE STUDIO. COMING UP, WE ARE LIVE FROM THE WORLD AI CONFERENCE IN SHANGHAI AS CHINESE TECH GETS A BIG BOOST FROM THE LATEST AI RELEASES FROM ALIBABA AND MOONSHOT. LATER, WE WILL GET THE SECTOR'S OUTLOOK WITH THE CEO OF MATRIX ROBOTICS. YOU ARE WATCHING "THE CHINA SHOW." THIS IS BLOOMBERG. ♪ DAVID: HANG SENG INDEX, CSI 300, THE TAIEX WHICH IS FLAT LAST I CHECKED. WE ARE NOW -- DO WE HAVE THE KOSPI INDEX? WE WILL GET MORE CONTACTS FROM ANTHONY IN A MOMENT AND WHY WE ARE SEEING THESE MOVES. JAPAN IS SHUT TODAY IN CASE YOU ARE CURIOUS WHY THAT BENCHMARK -- UP .1% WHICH IS A GOOD THING GIVEN WHERE WE COME FROM AND THE DIRECTION OF PRICES ON FRIDAY GOING INTO THE WEEKEND. THE DIRECTION OF TRAVEL AS FAR AS NEWS FLOW IS CONCERNED IN THE MIDDLE EAST. 2% TO THE UPSIDE ON THE HANG SENG INDEX. WE ARE COMING OFF A 3% DROP ON THE CSI. CHINEX WAS OFF. THE STAR 50 WAS ALSO OFF, ALMOST 7% IN BOTH. WE TALKED ABOUT THE TAIEX INDEX AND THE KOSPI DOWN ABOUT 3.5%, THE AVERAGE OF THE LAST 30 MINUTES. DOWN AS MUCH AS 4% ON THAT SPECIFIC BENCHMARK. LET'S TALK ABOUT TSMC, REBECCA . REBECCA: TSMC COMING OUT ALL GUNS BLAZING. IT WILL ADD 100 BILLION DOLLARS TO ITS INVESTMENTS IN ARIZONA TO MEET DEMAND FROM U.S. CUSTOMERS AND WARD OFF AMBITIOUS RIVALS. ITS VICE AND CEO SPOKE WITH BLOOMBERG'S STEPHEN ENGLE ON THE TIMELINE OF THAT BUILDOUT. >> WE ARE DOING VERY WELL IN ARIZONA. OUR PHASE ONE, USING M4 TECHNOLOGY IS UP AND RUNNING. THE EU IS VERY GOOD, COMPARABLE TO THE MOTHER FAB IN TAIWAN. PHASE TWO, TOOLS WILL BE MOVED IN VERY SOON. PHASE THREE WILL BE N2 TECHNOLOGY. THE CONSTRUCTION HAS ALREADY STARTED. PHASE FOUR OF THE WAFER FAB IN THE FIRST -- AND THE FIRST PHASE OF THE PREPARATION WORK HAS STARTED. WE ARE MAKING REAL PROGRESS AND I'M VERY HAPPY ABOUT THE STATUS IN ARIZONA. AT THIS TIME, WE CONTINUE TO SEE VERY STRONG DEMAND FROM THE CUSTOMER. THE MULTIYEAR STRUCTURE DEMAND. AND OUR KEY CUSTOMERS IN THE U.S., THESE ARE THE PEOPLE THAT ARE USING THE EVENTS TECHNOLOGY. THAT IS WHY WE HAVE DECIDED TO ADD ON TO OUR ALREADY EXISTING INVESTMENT IN ARIZONA TO ADD ANOTHER 00 BILLION. THE TIMING OF RAMPING THESE NEW FABS WILL DO FOR -- DEPEND ON THE MARKET CONDITIONS AND CUSTOMER NEED. HAVING SAID THAT, CAPACITY IS NOT BOARD OVERNIGHT. IT TAKES TWO TO THREE YEARS TO BUILD A FAB. IT TAKES ANOTHER ONE TO TWO YEARS TO RAMP IT UP. BUT WE WILL DO IT AS SOON AS POSSIBLE, AS SOON AS WE CAN. STEPHEN: HOW DO YOU VIEW THE INDIGENOUS INNOVATION GROWING IN CHINA? CSMC WILL BE LISTING SOON. THEY ARE GETTING A LOT OF ATTENTION. A SMALLER RIVAL TO YOU ON THE FOUNDRY SIDE. HUAWEI HAS BEEN TOUTING THEIR ALTERNATIVE. WHAT DID YOU MAKE OF THE INNOVATIONS AND THE PROGRESS CHINA HAS MADE? WENDELL: OBVIOUSLY, THEY ARE MAKING GOOD PROGRESS BUT IF YOU TALK ABOUT COMPETITION, IT IS NOT JUST CHINA. IT IS EVERYWHERE. WE HAVE A BIG COMPETITOR IN SOUTH KOREA. WE HAVE ANOTHER ONE IN THE UNITED STATES. THESE ARE FORMIDABLE COMPETITORS. BUT WE ALWAYS HAVE COMPETITORS. WE KNOW HOW TO COMPETE. IT GOES BACK TO THE FUNDAMENTALS OF THIS INDUSTRY. TECHNOLOGY LEADERSHIP, MANUFACTURING EXCELLENCE AND CUSTOMER TRUST. YOU NEED TO HAVE A SERVICE MENTALITY AND THEN YOU NEED TO BE NOT COMPETING WITH YOUR CUSTOMERS. IF YOU PUT ALL THESE TOGETHER, TSMC IS ALWAYS THE FIRST PRIORITY, FIRST CHOICE FOR OUR CUSTOMER. STEPHEN: GIVEN EVERYTHING YOU JUST SAID ABOUT YOUR ADVANTAGE, HOW MUCH DOES THAT GIVE YOU A SIGNIFICANT ADVANTAGE OVER THE RISING COMPETITORS LIKE INTEL? WENDELL: THE OVERALL STRATEGY FOR US IS THAT WE HAVE VERY STRONG CONVICTION IN THIS MEGATREND. WE ARE DOING EVERYTHING WE CAN WHEREVER WE CAN TO EXPAND TO SUPPORT THE CUSTOMERS. ALSO DEMONSTRATE THAT WE DO NOT INTEND TO LEAVE ANY FOOD ON THE TABLE FOR ANYBODY ELSE. DAVID: THAT WAS THE TSMC CFO JUST CONTINUING THE CONVERSATION ON AI AND BREAKING NEWS COMING THROUGH AS WELL, THE LOWER THIRD IS COMING UP ON YOUR SCREENS ON THIS SPECIFICALLY SO AGAIN, IF YOU ARE LOOKING AT WAYS TO EXPRESS YOUR AI INTEREST AS FAR AS IPO'S IN THE CITY, IT'S A CONCERN. WE HAVE BEEN LOOKING AT OPTICAL RELATED STOCKS. THIS IS A COMPANY THAT PRODUCES OPTICAL DEVICES LISTED ON THE MAINLAND, GETTING INTEREST FOR THE HONG KONG LISTING BASED ON THE THAMES WE ARE LOOKING AT RIGHT NOW. SHARES ARE UP 2.1% ON THE MAINLAND IN ANTHONY STEPHENS IS LOOKING AT THE STOCKS SPECIFICALLY AS WELL AS OTHERS, ANTHONY. ANTHONY: THEY PICKED A GREAT DAY FOR THIS. THEY HAD AN AMAZING DAY OF VALIDATION FOR ITS TECHNOLOGICAL MODEL. WITH 2 TRILLION PARAMETER MODELS OVER THE COURSE OF A COUPLE OF DAYS. WHAT THEY CAN DO HAS BEEN VALIDATED IN TERMS OF THEIR COMPUTE CAPACITY AND WHAT YOU ARE SEEING IN THE ECOSYSTEM ACROSS THE SEMICONDUCTOR SPACE, THE OPTICAL SPACE AND OTHER COMPONENTS, THIS IS A MARKED CONTRAST TO THAT OF THE REST OF THE REGION WHICH IS SUFFERING UNDER THE ASSUMPTION THAT THE CHINESE WILL NOT NEED AS MUCH TAIWANESE AND KOREAN COMPONENTS. SWITCH THE BOARD TO HOW THE INTERNET SPACE IS DOING AND THIS HAS BEEN A HUGE LAGGARD YEAR TO DATE AND YOU ARE SEEING A BIG CHANGE NOW IN THE LANDSCAPE OF THE AI WORLD. YOU ARE SEEING ALIBABA COME UP WITH THE $2 TRILLION MODEL. YOU ARE SEEING THE VALIDATION OF THE SEMICONDUCTORS AND YOU ARE SEEING THE IMPACT OF COMPETITION ON THE WORLD'S BEST PERFORMING HONG KONG STOCK WHICH IS DOWN 10% AND THAT CONTINUES FROM A PRETTY DRASTIC MADE LAST WEEK AND THIS IS GOING TO BE THE DICHOTOMY THAT RUNS THE HONG KONG MARKET. WHICH MODEL WILL BECOME ASCENDANT AS THE 2 TRILLION PARAMETER MODELS CONTINUE TO COME TO MARKET. WE HAVE RUMORS THAT DEEPSEEK AND MINIMAX COMING TO MARKET LATER IN THE MONTH, LATER IN THE YEAR. SWITCH TO TAIWAN AND YOU SEE HOW THIS DISPERSION PLAYS OUT IN THE SEMICONDUCTOR SPACE, SEEING ALL THE MORE KIND OF COMMODITIZED WAYS OF PLAYING THE AI CYCLE, STARTING TO GET HIT REALLY BADLY IN TAIWAN. THESE THINGS MAKE SUBSTRATES AND PASSIVE COMPONENTS. THESE ARE VERY LOW MARGIN BUSINESSES THAT ARE QUITE EASILY DISRUPTED AND REQUIRE A MUCH LARGER AI SPEND. ON THE OTHER HAND, IN LINE WITH WHAT WE HEARD FROM TSMC, TSMC IS BENEFITING AS A DOMINANT FORCE. THESE CHINESE MODELS ARE STILL HUGE AND NEED LARGE COMPUTE CAPACITIES TO CONTINUE TO INNOVATE. IT MAY END UP HANGING ONTO ITS LEADERSHIP POSITION WHILE THERE IS PAIN UNDER THE HOOD IN THE TAIWAN MARKET. DAVID: WELCOME BACK. YOU ARE WATCHING THE CHINA SHOW. AN UPDATE OF KOREA. IT HAS BEEN ACTIVATED GIVEN THE SELLING THAT HAS BEEN TAKING PLACE. OF COURSE, WE WILL BRING YOU THE LATEST ONES OF COURSE. WE DO RESUME SOME OF THE MOVEMENT THERE IN THAT SPECIFIC MARKET. WHEN WE ARE TRACKING CLOSELY IN GREENLAND AND HONG KONG MARKETS AND SOME OF THE SOLAR AND LITHIUM RELATED STOCKS, MORE ON POLICY PRONOUNCEMENTS THAT HAVE TAKEN PLACE IN THE RESUMPTION COME I THINK IT'S 2027, OF CONSUMPTION TAXES PERTAINING TO BOTH SPECIFIC AREAS COMING UP ON YOUR SCREENS AND IT'S PLAYING OUT MIXED ACROSS THESE MARKETS. THE OTHER POLICY DRIVEN SECTOR AT -- SECTOR WE ARE TRACKING TODAY ACCORDING TO CCTV IS LOOKING AT A RALLY ACROSS SOME NAMES. THIS COMES AS THE CHINESE STATE BROADCASTER FLAGGING A PICKUP IN GROWTH AND SURGING PRICES AMID TIGHT SUPPLY GROWTH OUT LOOK. JUST VERY QUICKLY TO MENTION SOME OF THE BREAKING NEWS WE HAVE SEEN IN THE PAST 20 MINUTES OR SO, THIS IS ON THE LISTING AND I THINK THOSE OF YOU GUYS WAITING FOR UPDATES ON THE OPTICAL RELATED STOCK WE TALKED ABOUT THE MILLISECOND -- SEGMENT, THEY ARE BEIJING INTERESTS OF A HONG KONG LISTING, JUST TO CONTINUE THE CONVERSATION ABOUT AI AND MAYBE SOME OF THE STRESS -- POTENTIAL STRESS WE ARE SEEING IN THE LIQUIDITY FRONT. BECAUSE OF THESE BIG LISTINGS COMING TO THIS MARKET. LOTS MORE AHEAD. THIS IS THE CHINA SHOW. ♪ DAVID: WELCOME BACK. A COUPLE OF THINGS HAPPENING IN THESE MARKETS. ONE IS, AS YOU CAN SEE ON YOUR SCREENS. >> CERTAINLY SEEING REBOUNDS FROM THE TERRIBLE DAY ACROSS RISK ASSETS ON FRIDAY. ALTHOUGH MANNANSED, A CLOSER LOOK AS WE’RE COMING OFF HIGHS QUICKLY IN SOME MARKETS LIKE THE C.S.I.300. WE WERE UP AS MUCH AS 1, 1.5 IF NOT MORE. THE STORY IN HONG KONG IS YOU HAVE SOME OF THE PLATFORM COMPANIES REBOUNDING AND LEADING THE GAINS TODAY. ALIBABA WITH THEIR ANNOUNCEMENTS OVER THE WEEKEND. THE KOSPI I BELIEVE IS RESUMING TRADE. MATRIX ROBOTICS IS A COMPANY SPECIALIZING IN PHYSICAL A.I. AND THE COMPANY UNVEILED ITS THIRD GENERATION HUMAN ADD ROBOT MATRIX 3 EARLIER THIS YEAR. MINMIN LOW JOINS US FROM THE CONFERENCE IN SHANGHAI WITH THE FOLKS BEHIND THE MACHINES. MINMIN? MINMIN: HEY, DAVID. AS YOU CAN SEE, A MODEL OF THE ROBOT IS BEHIND ME BUT JOINING HUH IS THE C.E.O. AND FOUNDER OF THE COMPANY. TELL US WHAT IT CAN DO. >> THIRD GENERATIONAL OF THE MATRIX 3 AND THAT ONE IS OFFERING THE A.I. -- AND IT CAN PROVIDE COFFEE FROM AN EMPTY CUP AND USING THE FINGERTIP TO CONTROL THE TOUCH AND USING ITS RIGHT HAND TO DELIVER THE COFFEE TO THE CLIENT AND ALSO WE HAVE THE OTHER GENERATIONAL ROBOT AND HELPED TO TAKE THE TOUR AND ZO THE INTERRUPTION AND FAR, FAR AWAY IT CAN PROVIDE -- AND PAPER. MINMIN: IT’S UPWARDS OF 500,000 R.M.D. ARE YOU SEEING A LOT OF INTEREST? >> GAINING INTEREST FROM THE MIDDLE EAST, ESPECIALLY IN THE LUXURY RESORTS. THEY WANT TORPID THE 3 AND RECEPTION SERVICE. MINMIN: I WOULD IMAGINE A CHINESE COMPANY, THEY CAN HIRE MAYBE TWO STAFF. IS YOUR ROBOT -- ARE THEY USING IT AS MORE OF A NOVELTY FACTOR RIGHT NOW? >> ACTUALLY, INSTEAD OF PROVIDING THE PRODUCTIVITY, WE THINK IT WILL PROVIDE MORE EMOTIONAL ELEVATION, ESPECIALLY PROMOTING THE TRAFFIC. SO, FOR EXAMPLE, AS A REGULAR WORKSHOP, EVERY DAY THEY CAN SERVE TO 100 TO 150 CUPS PER DAY BUT IF THEY ACQUIRE THE MATRIX 3 THEY COULD GROW 30% OF THEIR RE REVENUE. >> SOME PEOPLE WILL SAY THAT YOUR COMPANY AND A COPYCAT. WHAT’S YOUR RESPONSE TO THAT? >> YES, SOME OF OURS ARE FROM THE -- AND IT MORE LOOKS LIKE THE HUMAN. AS YOU CAN SEE THAT GEN3 IS 1.7 METERS TALL AND 75 KILOGRAM AND WE ARE USING -- WHICH HAS MORE FREEDOM THAN THE ONE CURRENTLY ON THE MARKET AND WE’RE THE ONLY ONE WHO CAN PRODUCE IT. SO IT MORE LOOKS LIKE THE HUMAN. MINMIN: YOU’VE PREVIOUS TALKED ABOUT BRINGING THE PRIDE DOWN TO MORE THAN A THREEFOLD DECREASE. WHAT’S YOUR TIMELINE TO GETTING THERE? >> 34 TO 36 MONTHS FROM NOW AND BECAUSE WE TRULY CAN FORESEE THE FUTURE, SO THE COST WILL BE JUMPING DOWN QUITE STEEPLY. MINMIN: THAT’S VERY AMBITIOUS. WHAT ARE THE SOURCE OF THIS COST REDUCTION? WHERE IS IT GOING TO COME FROM? >> WE THINK THE TWO VERY IMPORTANT CONCEPTS ARE HOW WE KEEP IT RATING AND REENGINEERING THE HUMAN ADD ITSELF AND TRY AND CUT SOME OF THE THINGS FROM THE BODY AND TRY TO MAKE THE WHOLE SYSTEM MORE INTEGRATED IF EASIER TO PRODUCE AND THE SECOND PART IS WE NEED TO SCALE UP THE AUTONOMY OF THE MODEL. CURRENTLY WORE WORKING ON THE FOUNDATION MODEL. IT WILL HELP US GET A LOT OF INTEREST AND DEMAND FROM THE MARKET. SO ONCE THE VOLUME GOES UP, THE COST GOES DOWN AUTOMATICALLY. MINMIN: IT REQUIRES A FOUNDATIONAL COMPUTER AS WELL. ARE YOU FACING ANY CON RESTAURANTS? >> THAT’S A VERY GOOD QUESTION. ACTUALLY WE’RE STILL OK IN THE DATA ENGINE BECAUSE IN CHINA WE CAN LEVERAGE A LOATH OF THE LOW-COST LABOR AND HELPS US TO TO -- BUT TO BE HONEST, A LITTLE BIT REINSTRUCTION ON --ERER ACQUIRING THE G.P.O. FROM OVERSEAS BUT TODAY A LOT OF MANUFACTURERS LIKE, FOR EXAMPLE, HUAWEI, THEY HELP US DO SOME OF THE WORK BUT WE STILL HAVE A LONG WAY TO GO. MINMIN: IF YOU WANT TO BUY FROM THE CHINESE SUPPLIERS, HOW LONG DO YOU HAVE TO WAIT FOR IT? >> YES, THERE IS QUITE A SHORTAGE. BECAUSE THE LARGE WILL HAVE LANGUAGE MODEL -- DO NOT LEAVE TOO MUCH FOR THE PHYSICAL INTELLIGENCE SO WE SOMETIMES HAVE TO WAIT TWO OR THREE WEEKS. MINMIN: IS THIS A MAJOR CONSTRAINTS ON THE PACE OF YOUR INNOVATION? BECAUSE TIME IS MONEY. >> THERE ARE A LOT OF CONSTRAINTS. THE BIGGEST IS HOW QUICKLY AND HOW LOST COST WE CAN ABSORB THE PHYSICAL DATA FROM WHEN THE HUMAN IS DOING MANIPULATION STUFF, WORKING STATIONS. MINMIN: YOU’RE STILL MAKING LO LOSSES PEROT BOTTOM AS OF NOW, RIGHT? >> ACTUALLY, WE’RE SELL AT COST NOW. MINMIN: WHICH CAN YOU REACH PROFITABILITY ON A COMPANY-WIDE LEVEL? >> AGGRESSIVELY MAYBE THE NEXT 1 MONTHS BECAUSE WE WILL KEEP IT RATING THE MATRIX. MAYBE THE NEXT ITERATION, MATRIX 4. SUPER PROFITABLE AND HAVE A GOOD PROFIT MARGIN. MINMIN: I THINK YOU’RE EXPANDING YOUR CAPACITY TO 100,000 ROBOTS BY NEXT YEAR, VERY AGGRESSIVE. ARE YOU LOOKING AT THAT SORT OF DEMAND? >> WE THINK THIS YEAR WE ARE TALKING ABOUT -- AND NEXT YEAR WE ARE GOING TO DELIVER 10,000 TO MAYBE 20,000 UNITS AND THE YEAR AFTER NEXT YEAR, 2028, WE ARE TALKING OVER 50,000 UNITS PER YEAR. JUST LIKE THE ELECTRIC VEHICLE, THE VOLUME WILL KEEP GROWING. MINMIN: TALK TO ME ABOUT ANY FUNDRAISING PLANS. >> CURRENTLY WE’RE LOOKING AT 200 IMPACT U.S. DOLLAR FUND AS THE CURRENT RATE. MINMIN: THERE ARE SO MANY THINGS ON DISPLAY HERE. HOW DO YOU ASSESS THE COMPETITIVE ENVIRONMENT HERE AND THE PRICE COMPETITION, IS IT TOO UNHEALTHY RIGHT NOW? >> I THINK THE COMPETITION IS JUST NOT ABOUT THE PRICE. YOU CAN SEE THE EXHIBITORS HERE PROVIDING THE DIFFERENT ROBOTS AND SPECIFICS AND FOCUS ON DIFFERENT AREAS. FOR US, THE TYPE OF SERVICE IN THE RESTAURANT AND COACH SHOP AND IT’S NOT APPLE TO APPLE SO THE COMPETITION TODAY IS STILL VERY EARLY SO WE CAN SEE MAYBE THREE OR FOUR YEARS FROM NOW NARROWING DOWN TO A FEW IN THE MARKET. MINMIN: THANK YOU. THE FOUNDER AND C.E. O. OF MATRIX RO BRATTICS. STILL IN THE EARLY PHASES HERE. DAVID: MINMIN LOW, OUR CORRESPONDENT ON THE GROUND FOR US IN SHANGHAI. ATNY IS WITH US SO TAKE US THROUGH SOME OF THE A.I. PICKS AND HOW THAT’S PLAYING OUT ACROSS THE REGION, SPECIFICALLY TODAY. ANTHONY: WE’VE SEEN SOME SPECTACULAR VOLATILITY ALREADY. AT THIS POINT IN TIME IT LOOKS LIKE IT’S RESOLVING ON THE DOWN SIDE. WE CONTINUE TO SEE HEADLINE KNICKS STRUGGLE WITH THE RAMIFICATIONS AROUND MEMORY USAGE. ALIBABA AND MOONSHOT BOTH SEEM TO BE A LOT MORE EFFICIENT AND THAT IS HURTING THE USE CASE FOR THIS MAYBE IT IS A MIX OF AI TRADE UNWINDING DUE TO THE PHYSICAL AI BULLISHNESS BUT MAYBE IT'S ALSO DUE TO THE UPTICK. THOSE TWO EVENTS CONFLUENCE AND IN A DOWNTREND. WHAT IS INTERESTING IS THE HUGE DEBATE AROUND RETAIL DELEVERAGING AND THE STATS AROUND THAT ARE LAGGING ON THE PUBLIC SPHERE SO PEOPLE HAVE TO ESTIMATE HOW MUCH RETAIL HAS UNWOUND. THE COUNTRY CONTINUES TO GRAPPLE WITH THE KIND OF REGULATORY ENVIRONMENT AROUND LEVERAGED ETF'S. THEY CAMPED NEAR ISSUANCE BUT THEY TALKED OFF ANY CHANCE OF BANNING THEM. ON THE OTHER SIDE, WE CONTINUE TO SEE ETF INFLOWS LISTED IN THE U.S. LIKE THE ISHARES AND KOREA ETF SO THE FLOW PICTURE IN. IT IS EXTERNALLY COMPLICATED AT THIS JUNCTURE AND ITS MEETING TECHNOLOGICAL COMPLEXITY AND IT'S LEADING TO A LOT OF INTRADAY VOLATILITY. FLIP THE BOARD AND IT'S MUCH SIMPLER IN HONG KONG, CHINA. WE HAVE CLEAR WINNERS AND LOSERS FROM THE AI TRADE TODAY. WE SEE THE EXISTING COMPETITION FROM THE NEW MODELS GETTING HIT AGAIN. THIS IS AFTER A HUGE MOVE ON FRIDAY. MUCH WEAKER HERE. THESE TWO COMPANIES HAVE RAISED SIGNIFICANT SECONDARY MARKET PLACEMENTS THAT ARE NOW STRUGGLING SO IT WOULD BE VERY INTERESTING TO SEE HOW INVESTORS TRADE THE SECONDARY MARKET PLACEMENTS GIVEN THE PRESSURE IN THE MARKET ON THESE THEMES. ON THE OTHER SAID, YOU HAVE A CLEAR BENEFICIARY FOR ALIBABA. THE NEW MODEL IS BEING RECEIVED VERY WELL AND THAT IS SOMETHING TO WATCH. THAT HAS TRIGGERED A LAGGARD BOUNCE, NOTABLY IN NAMES -- THESE NAMES ARE THE BIG LAGGARDS IN TERMS OF ASIAN MARKET WEIGHT AND THE TECHNOLOGY TRADE IN ASIA WE HAVE SEEN FOR A VERY LONG TIME, HARDWARE OUTPERFORMS SOFTWARE AND IF THAT REVERSES, THAT HAS SPACE TO MOVE A LOT. IN CHINA, WE SEE THIS LAGGARD TO BOUNCE AS THE CHINESE REGULATORS CONTINUE TO TALK ABOUT STABILIZING THE MARKET AND FOR THEM TO DO THAT, THEY HAVE TO BUY THE BIG CAPS AND YOU ARE SEEING THE BIG CAP LAGGARDS BOUNCE VERY HIGH, HELPED BY AN INTERESTING PIECE OF FUNDAMENTAL NEWS. THEY ARE FINALLY INCREASING THE PRICE OF FLAGSHIP PRODUCT WITH A LONG SLIDE IN THAT STOCK WITH A BIG MOVE THAT IS HEAVILY UNDERWEIGHT IN CHINA AS A CONSUMPTION PLAY AND YOU ARE SEEING AN OBVIOUS BOUNCE IN PETROCHINA, MAKING UP THE LAGGARDS LIST THAT IS SUPPORTING THE MARKET HERE SO VERY INTERESTING PICTURE IN CHINA. BOTH THE TECH AND THE LAGGARDS SPACE SORT OF SUPPORTING THE MARKET ON THE INDEX BASIS WHILE THE REST OF THE REGION STRUGGLES. >> EXCELLENT BREAKDOWN FROM THE BLOOMBERG MARKETS REPORTER. YOU CAN REWATCH ANY OF THOSE SEGMENTS INCLUDING COVERAGE OF OUR WORLD AI CONFERENCE ON THE BLOOMBERG VIDEO HUB. SUBSCRIBERS CAN EXPLORE LIVESTREAMING, NEWS, INTERVIEWS, ALL OF OUR BLOOMBERG TV SHOWS, AND PLENTY MORE. CHECK IT OUT. BLOOMBERG.COM/VIDEOS. THIS IS BLOOMBERG. ♪ DAVID: WELCOME BACK. OK, SO LET'S TALK ABOUT SPORTS IN A MOMENT BUT I GUESS A GOOD SET UP WOULD BE IT WASN'T EVEN CLOSE. NOT EVEN CLOSE WHEN YOU LOOK AT MARKETS TODAY SPECIFICALLY. CHINESE MARKETS CONTINUE THE STREAK OF OUTPERFORMANCE EARLY MONDAY WITH MSCI CHINA SHINING BRIGHT AMONGST WHAT YOU SEE ACROSS THE REGION. THE ITERATION OF THAT ON YOUR SCREENS IS THE CSA 300 AND THE HANG SENG INDEX OUTPERFORMING, CONTINUING TO OUTPERFORM PEERS. THIS MIGHT STRETCH THE STREAK TO FOUR A WEEK. THREE STRAIGHT WEEKS BACK INTO CHINA. THIS CHART IS ABOUT TO SHOW YOU THAT ON THE SCREENS. IT'S VERY EARLY. DEVELOPED MARKETS OF BEEN TRADING THAT SHOULD SHOW UP ON YOUR SCREENS VERY SHORTLY. IT IS WEEK NUMBER FOUR COMING UP ON YOUR SCREEN. WE WILL SEE WHAT HAPPENS OF COURSE. THE VIX IS A THEME TO WATCH ACROSS MARKETS. USING THAT AS A JUMPING OFF POINT, IT WAS NOT EVEN CLOSE. SPAIN ARE CHAMPIONS ONCE AGAIN, 2010 COURSE WAS THE LAST TIME, DEFEATING ARGENTINA. EXTRA TIME. THE SUBSTITUTE, SCORING. THE DECISIVE GOAL INTO THE CLOSE. DOMINATED THE MATCH IS IS AN UNDERSTATEMENT. ARGENTINA STRUGGLED TO MUSTER A MEANINGFUL ATTACK IN WHAT WOULD BE LIONEL MESSI LESS WORLD CUP MATCH, FAILING TO REGISTER A SINGLE SHOT ON TARGET ACROSS 120 MINUTES AND THEY ALSO WENT DOWN TO 10 MEN AFTER THE RED CARD INTO THE CLOSE OF THE REGULAR TIME, PUTTING THEM AT A MAJOR DISADVANTAGE GOING INTO EXTRA TIME. HE HAS BEEN WATCHING THE WORLD CUP FOR US ALL TOURNAMENT. OUR MANAGING EDITOR IS HERE WITH US ON SET. >> I ONCE HEARD SOMEBODY TALK ABOUT THIS AND COMPARED SPAIN TO A BOOK -- A BOA CONSTRICTOR. THEY SUFFOCATED ARGENTINA. THIS IS WHAT THEY HAVE DONE ALL TOURNAMENT, PLAYING DOMINANT. THEY MANAGED TO STOP FRANCE AND ARGENTINA. THEY MADE GREAT TEAMS LOOK QUITE MEDIOCRE AND THIS IS WHAT HAPPENED AND AS YOU WERE WATCHING THIS FINAL GAME, IT ALWAYS SEEMED LIKE IT WAS ONLY A MATTER OF TIME BEFORE SPAIN WOULD BE ABLE TO STRIKE. WHAT A MOMENT IT IS IN SPAIN. SECOND TITLE. THEY STAND THEIR CREDENTIALS AS ONE OF THE GREAT FOOTBALLING POWERS OF ALL TIME. DAVID: PARTS OF THE COVERAGE, THE FOOTAGE WENT TO THE 2010 TEAM WHO WE ARE WATCHING. CARLOS WAS THERE. IT WAS A SYSTEMATIC DISMANTLING OF OPPOSITION REGARDLESS OF WHO YOU PUT IN FRONT OF THEM. AS A COMMERCIAL SUCCESS, TALK TO US ABOUT THE NUMBERS THAT WE HAVE SEEN AND HOW DOES THIS SET US UP? I BELIEVE THEY ARE HOSTING THE NEXT WORLD CUP IF I'M NOT MISTAKEN. ONE OF THE HOSTS. >> ONE OF SIX HOSTS FOR THE CENTENNIAL WORLD CUP IN 2030 ALONG WITH PORTUGAL, MOROCCO, URUGUAY, PARAGUAY, AND ARGENTINA SO BOTH OF THE FINALISTS WILL BE HOSTING NEXT TIME AROUND. COMMERCIALLY, THIS IS A SUCCESS, AMERICAN SUCCESS STORY. THE U.S. DOMINATED EVERY ASPECT OF IT. FINANCIALLY, LOOKS LIKE THE PHONE WILL COME OUT EVEN BETTER THAN EXPECTED. THEY EXPECTED 1 BILLION OF REVENUE. THE LATEST ESTIMATES ON SOME OF THE REPORTING MAKE IT LOOK LIKE IT WILL BE AROUND 5 BILLION. AROUND TWICE AS MUCH REVENUE AS LAST TIME AROUND. OF COURSE, THE EXPANDED SCHEDULE AND THE EXPANDED FIELD AND MORE OF A KIND OF GEOGRAPHIC FOOTPRINT FOR THIS WHOLE TOURNAMENT. WHAT WE SAW WITH THE HYDRATION BRAKES, WITH THE PRESENTATION OF THE TROPHY ITSELF, ALL THE DIFFERENT LITTLE AND BIG OPPORTUNITIES WE HAD TAKEN ADVANTAGE OF. FIFA IS SELLING PIECES OF THE GRASS THAT THEY PLAYED ON. THEY ARE TRYING TO MAKE MONEY EVERY POSSIBLE WAY AND THEY DO SO THAT MAKES YOU WONDER WHAT IT MEANS FOR THE FUTURE OF THE WORLD, HIS COMMERCIALIZATION OF FOOTBALL THAT HAS -- IT SEEMS LIKE IT HAS BEEN TURBOCHARGED BY THIS EVENT TAKING PLACE IN NORTH AMERICA. DAVID: IT'S GOING TO BE DIFFICULT FOR A SINGLE COUNTRY FROM NOW ON TO HOST THIS AND THE REASON WE ARE LOOKING AT IT -- FANTASTIC. DEPUTY MANAGING EDITOR. BEFORE WE GO, JUST TO WRAP UP THESE MARKETS AS WE HEAD INTO THE NEXT PROGRAM IN BLOOMBERG TELEVISION. THIS CONVERSATION AROUND LISTINGS IN HONG KONG AND THE LATEST ONE STARTING TO GAUGE INTEREST FROM SHAREHOLDERS FROM INVESTORS AS WE LOOK AHEAD TO THIS SPECIFIC ONE. WE WILL SEE YOU ALL TOMORROW. THIS IS BLOOMBERG. ♪