relay icon

by Firefox Relay

0 email trackers removed

Upgrade for more protection

Morning Briefing: Asia
Bloomberg Morning Briefing Asia
View in browser
Bloomberg

Good morning. Dell hikes its outlook for the next four years. Asian youth struggle to find jobs. And French wine production sinks. Listen to the day’s top stories.

— Samantha Stewart

Markets Snapshot
S&P 500 6,714.59 -0.38%
Dell 150.87 +3.51%
Tesla 433.09 -4.45%
Oracle 284.24 -2.52%
Market data as of 05:31 pm EST. View or Create your Watchlist
Market data may be delayed depending on provider agreements.

Everything’s coming up AI. Dell roughly doubled its growth estimates for sales and profit for the next two years, saying AI demand will extend that trend at least through the end of the decade. “We were all wrong how big we thought the AI market was two years ago, and it’s nothing but bigger,” Chief Executive Officer Jeff Clarke said. The main challenge: keeping its servers up to date while protecting profit margins.

The Big Take
OpenAI, Nvidia Fuel $1 Trillion AI Market With Web of Circular Deals

Tesla’s surprise revealed. The EV maker unveiled new versions of its top-selling models priced at under $40,000, making its main vehicles more affordable to counteract the loss of US incentives for electric cars. It looks like investors weren’t all that impressed, with shares slipping on the news. Neither was Bloomberg Opinion’s Liam Denning, who called the new vehicles the wrong kind of cheap

German automakers are falling short in China. Mercedes saw its sales in the Asian country tumble 27% in the third quarter to their lowest level in almost a decade as luxury demand remains weak and local manufacturers dominate on the EV market. BMW is also feeling the heat, cutting its annual guidance amid persistently weak China sales and tariffs.

After a series of all-time highs, the S&P 500 is taking a breather, slipping amid signs of buyer exhaustion. Tech giants dragged down the index, with losses accelerating on a report that Oracle’s cloud-computing profit margin is lower than many had estimated. Gold steadied just shy of $4,000 an ounce.

Hamas said it’s seeking a “fair hostage exchange” that will include a permanent ceasefire and unconditional entry of humanitarian aid into Gaza as part of a deal with Israel to end the two-year war. Teams from the US, Qatar, Israel and other nations are headed to Egypt as part of a final push for an agreement.

Deep Dive: The Kids Aren’t Alright

Young people across Asia are struggling to find good jobs, with many stuck in low-productivity work that the World Bank warns could threaten social stability as frustration fuels a wave of youth-led protests.

  • Already, Gen Z’s anger at ruling elites is erupting—not just in Asia, but across the globe. From Morocco to Indonesia, young people are taking to the streets to protest inequality and a lack of jobs.
  • The generation is facing a bleak economic future, Bloomberg Opinion’s Karishma Vaswani writes. In addition to the shrinking pool of jobs, they also have to worry about the advance of artificial intelligence weighing on their prospects. 
  • Some Asian firms are making an effort to tackle the issue, with South Korea’s Samsung, SK and Hyundai planning to hire thousands of workers this year—a response to President Lee Jae Myung’s call to address the nation’s declining youth employment.

Opinion

As OpenAI seeks to compete with rivals whose legacy businesses mean they are better positioned to keep investing in artificial intelligence over the long-term, the startup has had to begin its boring is beautiful phase, Dave Lee writes. 

More Opinions
Mihir Sharma
Europe Wants a Reliable Partner. India Needs to Step Up.
David Fickling
Trouble Is Brewing in Solar Power’s Heartlands

Play Alphadots!

Our daily word puzzle with a plot twist.

alphadots

Today’s clue is: Office mate?

Play now!

Before You Go

Photographer: Angel Garcia/Bloomberg

Wine down. France further cut its estimate for this year’s wine production, putting output below 2024’s historically low level after summer heat waves and wildfires damaged vineyards. Output is now expected to be 36 million hectoliters, down from a September estimate of 37.4 million.

A Couple More