韩国股市大跌5.5% 芯片股承压拖累亚太市场

VONNIE: IT IS 5:00 A.M. IN NEW YORK CITY. GOOD MORNING. CHIPMAKERS UNDER PRESSURE, DRAGGING STOCK FUTURES LOWER. SAUDI ARABIA INTERCEPTS FRESH HOUTHI ATTACKS. PRESIDENT TRUMP SAYS HE LOOKS AT JOINING SAUDI BACK STRIKES. BLOOMBERG NEW ECONOMY FORUM IN FULL SWING IN INDIA. AN ALL-STAR LINEUP THROUGHOUT THE DAY LIVE FROM NEW DELHI. THE GLOBAL CHIP SELLOFF CONTINUES. LET'S GET A READ ON MARKETS AROUND THE WORLD WILL WINNIE HSU.

WINNIE: GOOD MORNING. A PRETTY BRUTAL SELLOFF THAT WE SEE IN ASIA AND ESPECIALLY THE KOREAN STOCKS. THE BENCHMARK KOSPI BE AS MUCH A 7% EARLIER TODAY BEFORE PARING SOME OF ITS LOSSES TO BE CLOSING DOWN AT 5.5% LOWER. THE BIGGEST DRAGON THE MEMORY CHIPMAKERS. SK HYNIX DOWN MORE THAN 7% AND THAT IS COMING AFTER THE LOSSES WE SAW IN U.S. CHIPMAKERS OVERNIGHT, PLUS COMMENTS FROM BROADCOM CEO SAYING THAT GOING FORWARD THE KEY BOTTLENECK OF THE AI TRADE WILL LIKELY BE IN FUNDING INSTEAD OF MEMORY CHIPS.

THERE'S ALSO CONCERNS AROUND THE COMPETITION FROM THE CHINESE RIVAL CXMT, GIVEN THAT THEY ARE MAKING PROGRESS WHEN IT COMES TO THIS NEW MEMORY ARCHITECT THAT BOTH OF THESE KOREAN CHIPMAKERS ARE ACTUALLY WORKING ON FOR YEARS. YOU TAKE A LOOK AT HOW THAT IS SPILLING OVER TO THE BROADER ASIAN MARKET, THE MSCI ASIA DOWN 1.3%. JAPAN AND TAIWAN BOTH DOWN ABOUT 2%. ALL EYES ON THE JAPANESE YEN WHICH IS STRENGTHENING BY .4% TODAY.

WE JUST HAD THOSE HEADLINES CROSSING THE TERMINAL JUST NOW SAYING THE BANK OF JAPAN IS LEANING AGAINST A BACK TO BACK RATE THIS MONTH, SAYING THEY DON'T SEE A HIGH LIKELIHOOD OF A SHARP INCREASE IN THE UPSIDE INFLATION RISK. PLUS, THEY WANT MORE TIME TO ASSESS THE ECONOMIC DATA. WE DID SEE THE YEN FLUCTUATING -- FLUCTUATING AGAINST THE 158 LEVEL AGAINST THE DOLLAR. THE POSSIBILITY OF A RATE HIKE IS A BIT HIGHER WHEN IT COMES TO THE DECEMBER POSSIBILITY.

VONNIE: THE YEN SEEMS PRETTY STABLE FOR NOW. LET'S GO TO LONDON FOR A LOOK AT THE EUROPEAN SESSION WITH JUSTINA LEE. JUSTINA: GOOD MORNING. IT IS LOOKING LIKE A BETTER DAY IN EUROPE, PROBABLY THANKS TO LOWER TECH RATING. WE ARE SEEING THE STOXX 600 UP NEARLY 0.6% THANKS TO GAINS FROM A LOT OF THE PROXY BOND SECTORS LIKE REAL ESTATE AND UTILITIES. THE WORST PERFORMING SECTOR IS STILL TECH. LED BY CHIPMAKERS AND FOR A LOT OF THE REASONS THAT WHEN WAS TALKING ABOUT SUCH AS ASML.

WE FLIPPED THE BOARD AND LOOK AT THE FIXED INCOME SIDE OF THINGS, WE HAVE SEEN A PAUSE IN THE GAIN OF OIL AND WE HAVE SEEN THAT HAS BEEN A REPRIEVE FOR EUROPEAN BOND YIELDS IN GENERAL. TODAY, WE ARE SEEING SOME DOLLAR WEAKNESS THAT IS LIFTING THE EURO UP NEARLY 0.3%. VONNIE: THANK YOU. COMMENTS FROM INTEL ALSO SETTING A CHILL THROUGH THE MARKET BUT NOT QUITE SO MUCH AS IT DID IN KOREA AND NOT QUITE TAKING OUR CUES FROM KOREA.

NASDAQ 100 FUTURES ARE POINTING LOWER BUT S&P FUTURES ARE DECIDING WHICH WAY TO GO AND RUSSELL 2000 FUTURES FIRMLY IN THE POSITIVE. THE CHIPMAKER SELLOFF DOES CONTINUE. WE ARE SEEING A LITTLE BIT OF A SAFE HAVEN TRADE AS WE LOOK AT TREASURIES FOR PARTICULARLY THE 10 YEAR YIELD DOWN ABOUT FIVE BASIS POINTS BUT WE ARE SEEING DECLINES ACROSS THE BOARD, FOR BASIS POINTS AT THE LONG END AND TWO BASIS POINTS AT THE FRONT END.

WE ARE SEEING A LITTLE BIT OF CONSULTATION ON OIL AS WELL. BRENT CRUDE IS STILL UP AND HEATING OIL FUTURES ARE OFF JUST A FEW CENTS. NOT A MASSIVE AMOUNT OF RELIEF FROM THE DIESEL DEAL WITH RUSSIA. IT REALLY ONLY MEANS 1/6 OF RUSSIA'S NORMAL EXPORTS WILL BE COMING BACK TO MARKET SO IT IS NOT LIKE IT WILL MAKE A MASSIVE DIFFERENCE. THEY HAVE NOT QUITE COME TO MARKET YET SO EVEN THOUGH CREDIT SPREADS ARE NARROWING, WE ARE NOT SEEING A MASSIVE AMOUNT OF DIFFERENCE.

I DID WANT TO POINT OUT THAT BANK OF AMERICA HAS A NEW POLL OUT, SHOWING THAT INVESTORS ARE MORE EXPOSED TO TECH THEN THEY HAVE BEEN AT ANY TIME SINCE JUST AFTER THE PANDEMIC. LET'S GET SOME INDIVIDUAL PREMARKET MOVERS WITH ALEX MORGAN. ALEX: GOOD MORNING. MACRON, NVIDIA AND AMD, WE START THE ASIA SESSION WITH THE CONTINUING PRESSURE ON SEMICONDUCTORS, ON CHIPS. CLOSING DOWN AROUND 5%. KEEP YOUR EYES TO THESE NAMES TODAY.

WE HAVE THE COMMENTS FROM THE BROADCOM CEO, COMPARING MARKET SENTIMENT TO A CASINO GAMBLER SO THAT IS A COLORFUL ELEMENT IN THE MEMORY TRADE TODAY. LET'S FLIP IT OVER TO BUMBLE, SOME MATCHMAKING FOR THE DATA APP. ON THE NEWS THAT WALL STREET JOURNAL THAT THEY CAN BE LOOKING AT GOING PRIVATE FOR ABOUT $1 BILLION FOR LET'S FINISH ON STELLANTIS, SOME PLANNED OUTAGES IN NORTH AMERICA, PARTICULARLY SOME OF THE JEEP MODELS AND WANT TO KEEP ON EYE ON THAT TODAY.

VONNIE: THAT IS ALEX MORGAN. COMING UP, THE INFOSYS COFOUNDER AND CHAIRMAN JOINS US FOR AN EXCLUSIVE CONVERSATION. LATER, WE WILL PUSH AHEAD TO THE EARNINGS SEASON STARTING WITH THE BANKS THAT I STARTING WITH SEEMA SHAH. LET'S GET STRAIGHT TO SHERY AHN AT THE NEW ECONOMY FORUM IN NEW DELHI WITH THE EXCLUSIVE INTERVIEW. SHERY? SHERY: GREAT TO COME TO YOU FROM NEW DELHI FOR THE NEW ECONOMY FORUM, THE EIGHTH EDITION HAPPENING.

IT IS AROUND THE THEME OF THE GLOBAL WORLD ORDER WHERE WE ARE SEEING MORE COMPETITION IN AN ERA WHERE WE ARE SEEING ARTIFICIAL INTELLIGENCE DISRUPT SO MUCH. I AM HERE WITH THE INFOSYS CHAIRMAN AND COFOUNDER. THANK YOU SO MUCH FOR JOINING US. YOU HELPED BUILD THE I.T. SERVICES INDUSTRY HERE IN INDIA, WHAT WAS IT, 1981 WITH SIX OTHER COLLEAGUES?

YES. SHERY: SO MUCH IS CHANGING NOW AND AI COULD THREATEN THE WHOLE BUSINESS MODEL. HOW ARE YOU SEEING THE CHANGES NOW AND WHAT INFOSYS DOES NEXT?

I THINK THE LAST 45 YEARS, WE HAVE BEEN THERE, THIS IS THE BIGGEST TRANSFORMATION HAPPENING IN THE INDUSTRY BECAUSE AI IS CHANGING EVERYTHING. AI CODING IS BECOMING VERY POPULAR. IT IS ALSO CREATING NEW OPPORTUNITIES BECAUSE AI LED TRANSFORMATION OF BUSINESS IS THE BIGGEST STORY FOR THE NEXT DECADE. THAT REQUIRES A LOT OF SYSTEMS AND PEOPLE TO MAKE THAT HAPPEN. I BELIEVE WHILE CODING MAY BECOME LESS OF AN ISSUE, AI BUSINESS TRANSFORMATION WITH AI WILL BE A BIG OPPORTUNITY FOR COMPANIES LIKE INFOSYS.

SHERY: WHO ARE PARTNERING WITH ANTHROPIC'S CLAUDE AS WELL? NANDAN: IT IS A VERY EFFICIENT WAY OF ENABLING COMPANIES WITH MULTIPLE LEGACY SYSTEMS AND USING MULTIPLE TOOLS TO HAVE COMPLETE CONTROL OVER THEIR OWN INFRASTRUCTURE. THAT HAS BEEN VERY POPULAR. SHERY: YOU ARE MODEL AGNOSTIC WHEN IT COMES TO ORCHESTRATING, AS YOU HAVE CALLED IT, THIS AGE OF CHANGE FOR ENTERPRISES THAT YOU CONSULT FOUR. IN THAT CASE, WHAT SORT OF MODELS DO YOU PREFER?

SMALLER MODELS, FRONTIER BIG COMPANIES? NANDAN: IN ANY SITUATION, YOU HAVE A COMBINATION OF MODELS WITH SOME EXTREME HIGH REQUIREMENTS WE WILL USE FRONTIER MODELS. FOR THE MIDDLE, WE USE OPEN SOURCE MODELS FOR AND THE OWN SMALL MODELS USING YOUR DATA. YOU MIX AND MATCH ALL OF THESE THINGS BASED ON THE NEED. ORCHESTRATION IS BRINGING ALL THESE DIFFERENT THINGS TOGETHER TO CREATE AN EFFECTIVE SOLUTION. SHERY: TURNING THAT INTO ACTUAL REVENUE THE FACT THAT THE ENTERPRISES CAN ACTUALLY FEEL THAT A OUT IS HELPING THEM.

WHAT ARE THEY TELLING YOU? NANDAN: THEY ARE SAYING AI IS MAKING BUSINESS IS FAR MORE COMPLICATED THAN THEY THOUGHT. THEY HAVE DONE AN INITIAL PILOT SAID AT SCALING IT UP. UNLESS YOU FUNDAMENTALLY REIMAGINE AND TRANSFORM YOUR BUSINESS, YOU WILL NOT GET THE PRODUCTIVITY BENEFITS PEOPLE TALK ABOUT. PEOPLE ARE REALIZING THEY HAVE TO GO BACK AND REALLY IMAGINE HAVE WHAT IT TAKES TO USE AI AND CAPABILITIES. PUTTING GUARD RAIL SO THERE ARE NO ROGUE AGENTS.

A LOT OF REQUIREMENTS ON HOW TO DO AI PROPERLY. SHERY: DO YOU SEE OTHER INDIAN BUSINESSES BEING ABLE TO SURVIVE THE DISRUPTION OF ARTIFICIAL INTELLIGENCE THE WAY YOU ARE TALKING ABOUT IT? NANDAN: I AM SURE THEY WILL. EVERYBODY WILL EXECUTE THEIR OWN PLAN BUT IF THEY ARE ABLE TO CHANGE THEIR WHOLE BUSINESS MODEL AND BUILD NEW AI SERVICES, TRANSFORM THEIR WORKFORCE, REIMAGINE AI, THEY WILL DO IT. SHERY: IT IS NOT JUST ABOUT INFOSYS OR INDIAN TECH SERVICES, YOU HELPED BUILD THE DIGITAL INFRASTRUCTURE OF THIS COUNTRY, THE SYSTEM BY WHICH QPI WAS BASED WHICH REVOLUTIONIZED THE PAYMENT SERVICES SYSTEM.

DO YOU SEE ANYTHING THAT