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Marketplace All-in-One

AI stocks lead tech slump

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 25 July 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

From the BBC World Service: The stock market sell-off is spreading from the U.S. to Asia and Europe. There have been declines across the board, but companies specializing in AI and semiconductor chips have been hit especially hard. Part of it has to do with expectations of additional trade restrictions from the U.S. on chip trade with China. Then, smaller brands are competing against fashion giants to deck out this year’s Olympic athletes.

Transcript

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0:00.0

The stock market sell-off spreads to Asia and Europe live from the BBC World Service.

0:06.6

This is the Marketplace Morning Report.

0:08.1

Will Bain with you today.

0:09.1

Thanks for being with us.

0:10.1

Yeah, the route on Wall Street has spread today with tech shares, particularly those exposed to AI hit especially hard.

0:16.6

The BBC's Asia business reporter, Jo de Silver, has been across the numbers.

0:20.9

Morning, Jo.

0:21.9

Good morning. What's going on with Asian stocks right

0:24.3

now technology stocks in particular well Asian stocks have taken the cue from

0:28.6

Wall Street there's declines across the board especially in the tech sector. Tokyo Electron, a chipmaker in Tokyo is down.

0:38.5

Also SK Hynix in South Korea, so chipmakers especially, they've been hit the hardest and that's

0:44.4

really taking the cue from Wall Street where for a few weeks now the tech sector has

0:49.3

been falling and those falls really accelerated on Wall Street in the last trading section.

0:55.8

And that's all really to do with language, isn't it, and politics and talk about potential

0:59.8

restrictions of the movements of these chips around the world in such a globalized marketplace.

1:04.7

What kind of mood music have you picked up from those big Asian tech companies about that

1:09.5

and about what the future might look like?

1:11.3

Part of it is that expectation that the US will eventually impose more restrictions

1:17.0

on chips trade with China. China being of course a major market for technology. But there's also the aspects and analysts we've been talking to here really

1:26.7

emphasize that over the last year, the last two years we've seen a lot of money being

1:31.1

invested by tech companies in Asia in the US all around a lot of

1:35.5

investment being made into AI and now investors are wondering where are the returns we

...

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