阿里巴巴启动100亿美元港股配售，英伟达AI服务涨价15%

THIS IS "THE ASIA TRADE," I’M HAIDI STROUD WATTS IN SYDNEY.

I’M PAUL ALLEN. NVIDIA’S EARNINGS SAID TO BE A KEY MARKET CATALYST AS IT PLANS TO RAISE PRICES FOR ITS A.I. SERVICE. ALI BABA SEEKING A SHARE SALE TO FUND ITS A.I. EXPANSION. HAIDI: INFORMSORS ARE WATCHING U.S. INFLATION DATA. FED CHAIR -- AND THE FED CHAIR’S SPEECH FOR DEADLINE OUTLOOK. PAUL: TALKS HAVE FALLEN APART OVER TARIFFS. HAIDI: WE HAVE NO NEWS ON THE STRAIT OF HORMUZ. MARKETS GOING MILDLY INTO POSITIVE TERRITORY.

NVIDIA HIKING PRICES. ALI BABA LAUNCHING A $10 BILLION SHARE SALE ATTRACTING LOT OF CONVERSATION ABOUT THAT AS WELL. THOLE IS PLAYING INTO THE OUTLOOK AS WE GET INTO TECH-HEAVY MARKETS AROUND THE REGION. KOSPI FUTURES DOWN BY 2.5% AT THIS POINT. WE ARE WATCHING THE OIL PRICE SITUATION AS BRENT CRUDE LAST TRADED LOWER BY .8%. THE U.S. ISOLATION FLASH IRAN, WE DON’T HAVE A GREAT DEAL OF DETAILS ON THAT BUT THE TREASURY SECRETARY IS SET TO UNVEIL MORE DETAILS.

WE HAVE THE U.S. LOOKING TO RATCHET UP PRESSURE ON ALLIES WITH THE STALEMATE AROUND THE U.S.-IRAN WAR. PAUL: ALI BE BE LOOK TO RAISE AROUND $10 BILLION FROM A SHARE SALE. THE MOVE IMMEDIATELY SPURRED CRITICISM IF HIGHER PROFILE INVESTOR MICHAEL BEHR RIFF. LET’S BRING IN MINMIN LOW IN HONG KONG. MINMIN, TELL US MORE ABOUT THIS PLAN AND IT HAS CERTAINLY GOT ITS CRITICS. WHAT ARE THEY SAYING? MINMIN: YEAH,S THE LARKEST FOLLOW-ON SHARE SALE BY ANY COMPANY IN HONG KONG ON RECORD AND THE COMPANY IS PLANNING TO ISSUE SOME 700 OVER A MILLION SHARES AT A 3.6 DISCOUNT TO ITS FRIDAY’S CLOSING PRICE OF ITS A.D.R.

IF YOU CHECK THE A.D.R. THEY WERE DOWN AROUND 8.6% OR SO ON FRIDAY. ALREADY HUGE HIT TO THE COMPANY’S STOCKS POST EARNINGS AFTER IT RECORDED A 5% DECLINE ON YEAR WHEN IT COMES TO PROFITS. MICHAEL, THERE YOU GO, YOU CAN SEE A BIG DECLINE THERE. MICHAEL BERRY IS SAYING HE’S EXITED HIS POSITION IN ALI BABA SOME TIME BACK AND TRANSFERRED ALL HIS POSITION TO JD.COM INSTEAD, THAT’S AN ALI BABA RIVAL IN THE RETAIL ONLINE SPACE.

HE SAID ALI BABA MADE A LOT OF INROADS IN THIS LLM BLOODBATH BUT THAT DOESN’T MEAN ITS R.O.I. WILL GET BETTER. HE INITIALLY PLANNED TO FLIP BACK TO ALI BABA IN A COUPLE OF MONTHS BUT IS NO LONGER PLANNING TO DO THAT AND THE COMPANY ESCHARS WOULD HAVE TO FALL BY HALF TO MAKE IT ATTRACTIVE FOR HIM TO ENTER INTO THE TRADE AGAIN. HAIDI: MINMIN WHEN IT COMES TO THE BROADER A.I. SPACE, WE HAVE HEARD A LOT ABOUT THIS MYSTERY A.I.

MODEL, FOX ALPHA. DO WE KNOW MUCH ABOUT WHO MIGHT BE BEHIND THIS? MINMIN: WE DON’T HAVE ANY CONFIRMATION THOUGH THERE’S A LOT OF SPECULATION AND RUMORS ONLINE. THERE ARE PEOPLE SPECULATING THIS A MODEL FROM CHINA. SOME SAY ITS ARCHITECTURE IS SIMILAR TO GPOOLS. WHAT WE KNOW IS THEY LAUNCHED IT IN STEALTH MODE AND PROVIDED FREE ACCESS FOR A LIMITED TIME OF ONE WEEK. DEVELOPERS ARE TRYING IT OUT, IT’S GETTING A LOT OF REVAUGHNS PLACES LIKE REDDIT.

EVEN THE C.E.O. COMMENTED ON X SAYING IT IS VERY IMPRESSIVE. IT’S INTERESTING. I DON’T KNOW IF YOU HEARD ABOUT THE VIRAL ANIMATION FILM CALLED NEW LIE IN CHINA A LOT OF PEOPLE ARE COMPARING THIS NICKNAMING IT AS NEW LIE BECAUSE OX MEANS OR TRANSLATES TO NEW IN CHINESE.

I WANT TO SEE WHAT ALL THE EXCITEMENT ABOUT, IT’S BEEN CRITICIZED THAT IT’S SO BAD IT’S GOOD, IT’S A CULT CLASSIC NOW. MINUTE MINUTE LOWE IS WITH US. GETTING BACK TO THE NVIDIA NEWS WE HAVE HEARD SOME OF NVIDIA’S CUSTOMERS HAVE BEEN TOLD PRICES ARE GOING UP 15% IN MANY CASES. ASIAN MARKS WILL HAVE TO PRICE IN A NEWS AS WELL AS THE ALI BABA PLACEMENT HAS BECOME A NEW WEEK, MARKETS REPORTER ANTHONY STEVENS JOIN US FROM HONG KONG.

A LOFT THE SAME QUESTION, EXISTENTIAL QUESTIONS OVER THE EXPENSIVENESS OF VARIOUS THINGS WITHIN THE A.I. UNIVERSE. THE ALI BABA BLOCK. HOW DOES THAT SET UP THE DAY FOR US?

THERE’S A LOT OF MOVING PARTS IN THE A.I. TRADE. BUT THE FUNDAMENTAL PART IS FLOW KEEPS COMING. THERE’S A FLOOD OF A.I. PAPER COMING TO THE MARK, THE ALI BABA TRADE CAME TIGHT COMPARED TO WHERE IT SHOULD BE TRADING. IT’S AROUND THREE TIMES A.B.P. BLOCK. IT’S A ONE STANDARD DEVIATION MOVE FOR THE STOCK. YOU CAN SEE THERE’S A LOFT DEMAND FOR A.I., IT’S SEEMINGLY INSATIABLE. TALKING ABOUT. P.O. DEMAND, I.G. ISSUANCE DEMAND AND PRIVATE CREDIT DEMAND.

WHILE THAT DEMAND PICTURE IS STILL VERY STRONG THAT SETS UP ASIA QUITE WELL AT LEAST IN THE KIND OF A.I. TRADE. BUT THE WEIGHT OF ALL OF THIS ISSUANCE CONS TO PUT PRESSURE ON LITERALLY EVERYTHING ELSE. WE SAW THE U.S. MOMENTUM FACTOR CONTINUING TO DETERIORATE SO THE HIGHEST RISK PARTS OF THE MARKET ARE CRACKING EVEN THOUGH THE MARKET OVERALL IN THE U.S. IS QUITE STABLE. AND THAT’S BEING REFLECTED MORE OR LESS IN ASIA AS THE BIGGER COMPANIES FIND THEIR FEET AND THEY RETURN CASH TO THE MARKET IN THE CASE OF KOREA FOR EXAMPLE.

WE HAVE THE END OF THE EARNINGS IN THE BACK END OF THIS WEEK, RIGHT. SO WE GET A BIG UPDATE FROM THE TOP END OF THE A.I. TRADE AND MAYBE THAT STARTS TO DOMINATE AS MOMENTUM UNDERNEATH STAR TO PULL BACK. IT’S BE AN INTERESTING SESSION IN ASIA AS WE TRY DIGEST THE HUGE FLOW ALONGSIDE THE EVERYDAY PRICE HIKES.

IN TERMS OF THE -- PAUL: IN TERMS OF THE NVIDIA PRICE INCREASE WARS THE IMPLICATION FOR ASIA?

THEIR PRICE HIKE AROUND 15%. THAT’S CLOSELY MIRRORING THE THINGS MADE BY SAMSUNG AND HYNIX. THE ENTIRE A.I. SUPPLY CHAIN HAS BEEN INCREASING PRICES. CLEARLY NVIDIA CANNOT HOLD ON TO THAT AND HAS TO PASS IT ON TO CUSTOMERS. SO THAT’S AN INTERESTING DYNAMIC. BECAUSE WE ALSO HAVE SOME OF THE LISTED SERVICEMAKERS IN ASIA WHO WILL PROBABLY SUFFER ON THE BACK OF THAT. WHAT IS INTERESTING IN TERMS OF THE EVOLUTION OF THIS SPACE IS HOW MUCH PRICING POWER DOES NVIDIA HAVE BEFORE CUSTOMERS GO TO THEIR OWN CUSTOMER CHIP SET?

BEAR IN MIND A LOT OF NVIDIA’S CUSTOMERS ARE DOING THAT IN PARTNERSHIP WITH ASIA, AGAIN IN TAIWAN, THE LIKES OF MEDIA TECH, FOR EXAMPLE. TODAY’S RESPONSE WILL BE INTERESTING IN TELLS OF THE FOUNDRIES IN TSMC. THE MEMORYMAKERS WHO ARE DRIVING THE CHIP SHORTAGE AND DRIVING THIS CHIP PRICE INCREASES IN SAMSUNG AND HYNIX AND TO A LESSER EXTENT CXMT. ALSO SOME OF THE LISTED SERVER NAMES IN TAIWAN. THE WHOLE SPACE WILL BE IN PLAY TODAY ESPECIALLY WITH WEAK LEADS OUT OF THE U.S.

HAIDI: MARKET REPORTER ANTHONY STEPHENS. WE’RE WATCHING BOND MARKETS AFTER AN EVENTFUL WEEK LAST WEEK FOR TREASURY, LOOKING AHEAD TO KEVIN WARSH’S JACKSON HOLE SPEECH LATE THEY ARE WEEK. THE MINNEAPOLIS FED PRESIDENT, NEAL KASHKARI, IS DOWN PLAYING WORRIES RISING YIELDS.

THERE’S EVERY INDICATION THAT THE U.S. TREASURY MARKET IS FUNCTIONING AS IT SHOULD. THAT TRADES ARE TAKING PLACE, THERE’S LIQUIDITY IN THE MARKET THAT. ENABLES US TO FOCUS ON THE FED FUND RATE AS OW PRIOR MARE TOOL TO GET INFLATION BECOME DOWN. HAIDI: LET’S BRING IN OUR BLOOMBERG MLIVE STRATEGIST MARC KROONFIELD. THIS IS WHAT WE’RE CALLING A TREASURY TWIST. DOESN’T SEEM TO BE A QUICK FIX HERE FOR SCOTT BESSENT. WHAT COULD WE HEAR FROM THE FED CHAIR THAT COULD HAVE AN IMPACT?

MARK: HE’S IN A DIFFICULT SPOT. I DON’T THINK ANYBODY WOULD LIKE TO BE KEVIN WARSH THIS WEEK. MARKET EXPECTATION WERE HIGH THAT HE’D ADD SOME CLARITY TO WHERE HE SEES THE INFLATION IMPACT GOING. SOME KIND OF GUIDANCE. THOUGH HE’S A MAN THAT DOESN’T LIKE FORWARD GUIDANCE AT ALL. PEOPLE WERE EXPECTING A FEW WORDS TO THE INVESTOR BASE TO GIVE US A BIT OF AN IDEA OF WHAT’S ON HIS MIND WHERE HE SEES THINGS GOING AND THE BUILDOUT FOR SOME PROMPT HE IS HAS AT THE FEDERAL RESERVE GOING ON SYSTEM OF THAT REALLY MAY HAVE TO TAKE A BACKSTEP THANKS TO SCOTT BESSENT BECAUSE THE WAY IN WHICH THE TREASURY HAS INTERVENED IN THE BOND MARKET THEY’RE AFFECTING LONG-TERM YIELDS, THAT REALLY MAKES THE FED’S JOB MORE DIFFICULT.

KEVIN WARSH NOW MAY FEEL LESS INCLINED TO TALK ABOUT THE BROAD MARKS WHILE THIS IS GOING ON IN THE BACKGROUND AND INVESTORS ARE TRYING TO DIGEST HOW BIG AN IMPACT THIS WILL HAVE ON LONG-TERM YIELDS IN THE PEEKS A-- WEEKS AHEAD. HE MAY BE MORE RETICENT THAN HE HAS BEEN IN THE PAST AND JUST KICK IT FORWARD TO THE NEXT FOMC MEETING IN SEPTEMBER WHERE IT’S GOING TO BE A CLOSE CALL BETW