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[00:00:03] Live from Singapore now on BBC
[00:00:06] News, Business Today. MUSIC
[00:00:13] MUSIC The The world's largest cryptocurrency cryptocurrency exchange reopens after
[00:00:17] after a massive cyber attack as Binance
[00:00:19] Binance users withdraw $3.6 billion
[00:00:21] billion worth of digital assets. assets. And the deal rumours are
[00:00:25] are swirling with reports that chip chip maker Marvell Technology is
[00:00:28] is gearing up to buy Nvidia backed
[00:00:32] backed Lumentum. Hello and welcome
[00:00:38] welcome to Business Today. I'm Vandhna Vandhna Bhan Binance, the world's
[00:00:42] world's largest cryptocurrency exchange, exchange, reopened on Sunday after
[00:00:46] after a record hack last week, with with users rushing to withdraw their
[00:00:49] their digital assets from the platform. platform. The firm had suspended
[00:00:53] suspended all transactions in the
[00:00:55] the wake of the incident, which impacted
[00:00:58] impacted impacted $6.3 billion worth worth of digital assets. Major organisations
[00:01:02] organisations including the FBI, FBI, have accused North Korea of
[00:01:05] of being responsible for the cyber cyber attack, which is said to be
[00:01:08] be the largest hack in history. Well, Well, let's get more with our Asia
[00:01:12] Asia business reporter Archana Shukla. Shukla. Now, Arjuna, just get us
[00:01:14] us up to speed here and how damaging
[00:01:17] damaging this all is for Binance.
[00:01:20] Binance. Well, it did test the confidence confidence of the crypto industry.
[00:01:23] industry. It was the largest hack
[00:01:25] hack in the history at $6.3 billion
[00:01:28] billion moved. And you know it is is somewhere reflective in the withdrawals
[00:01:32] withdrawals that happened right after
[00:01:33] after the exchanges resumed trading
[00:01:36] trading $3.6 billion of net outflow
[00:01:38] outflow when on Sunday in phases,
[00:01:41] phases, Binance reopened withdrawals withdrawals and deposits. And that
[00:01:44] that somewhere shows the concern concern that the customers have.
[00:01:48] have. You know, it is the largest
[00:01:50] largest crypto exchange. And if a
[00:01:52] a hack of this nature can happen, happen, there is anybody's money
[00:01:55] money safe. It has also heightened heightened some amount of concern
[00:01:58] concern on the use of artificial artificial intelligence for such
[00:02:02] such attacks. You know, while you
[00:02:04] you know, Binance quickly got its
[00:02:07] its hand around this hack, this incident
[00:02:10] incident and they moved very swiftly swiftly to assure investors that
[00:02:13] that they would be bearing all the
[00:02:14] the losses and the money would be
[00:02:17] be safe within the crypto exchange. exchange. But it does damage some
[00:02:21] some bit of confidence in the industry.
[00:02:24] industry. For now, 95% of the assets
[00:02:27] assets have been restored, Binance Binance has said, and that the remaining
[00:02:30] remaining ones that they are still still figuring out how to bring that
[00:02:34] that back. It also raises questions
[00:02:36] questions on how did a hack of this this nature manage, you know, was
[00:02:40] was managed on such a big crypto crypto exchange because it started
[00:02:43] started with a very ordinary engineers engineers laptop. However, later
[00:02:47] later Binance said that possibly possibly it was a more complex attack
[00:02:51] attack where, you know, the attackers attackers actually used softwares
[00:02:54] softwares to hide some of the digital digital some of their digital tracks,
[00:02:58] tracks, which made it a bit difficult
[00:03:00] difficult to trace how this was done.
[00:03:02] done. But it for now, about 90% of
[00:03:05] of the assets are back. The crypto crypto exchange is back into trading
[00:03:09] trading with withdrawals and deposits.
[00:03:11] deposits. And Binance says it would would be covering all the losses.
[00:03:14] losses. All right Archana, appreciate appreciate you getting us up to speed
[00:03:17] speed there. Now following on from
[00:03:20] from that cyber hack Bitcoin payment
[00:03:22] payment software BTC pay is warning
[00:03:24] warning operators to shut down their their systems after reports that
[00:03:28] that hackers have been draining funds funds from online wallets. This latest
[00:03:31] latest attack adds fresh concerns
[00:03:33] concerns about security across the the cryptocurrency industry. BTC
[00:03:37] BTC pay says it's investigating the
[00:03:39] the attacks and has not yet revealed revealed how many users may have
[00:03:43] have been affected or how much money
[00:03:45] money has been lost. Now US chip
[00:03:47] chip maker Marvell has reportedly
[00:03:50] reportedly bid for laser supplier
[00:03:52] supplier Lumentum in a deal valued valued at $83 billion. While the
[00:03:56] the two companies have yet to confirm confirm the news, there has been
[00:03:59] been reaction in their shares with with Marvell stock falling 10% last
[00:04:03] last Friday. A deal would give Marvell,
[00:04:06] Marvell, which buys lasers from Lumentum Lumentum more direct access to a
[00:04:10] a major supplier. It would also bring bring together two AI investor favourites
[00:04:14] favourites as strong demand has sent
[00:04:15] sent both companies sales and stocks
[00:04:18] stocks soaring this year. Brendan Brendan Burke is research director
[00:04:21] director for semiconductor supply supply chain and emerging tech at
[00:04:25] at Futurum. Really great to be able able to speak to you here, Brendan.
[00:04:28] Brendan. Look we said there that that Marvell is already buying Lumentum
[00:04:32] Lumentum here. What's the thinking
[00:04:34] thinking behind this deal then to
[00:04:36] to purchase it altogether? Well good good morning and thank you for having
[00:04:40] having me. The thinking is that optical
[00:04:43] optical compute is the future of of AI accelerators and that Marvell
[00:04:47] Marvell needs to fully integrate
[00:04:49] integrate the value chain for scale
[00:04:51] scale up optics to be able to deliver
[00:04:54] deliver next generation accelerators accelerators to its hyperscaler customers.
[00:04:58] customers. What we've been hearing
[00:04:59] hearing at Futurum recently is that
[00:05:03] that hyperscalers can't wait to shift
[00:05:05] shift to optical to reach the next
[00:05:07] next tiers of high speed interconnect, interconnect, and they're pushing
[00:05:11] pushing the supply chain to get ready
[00:05:13] ready for it. Lumentum has a best
[00:05:15] best in class laser source for scale
[00:05:19] scale up and co-packaged optics,
[00:05:20] optics, and that's going to enable
[00:05:23] enable Marvell to define the future
[00:05:25] future of AI accelerators with its
[00:05:28] its existing and incoming customers. customers. Look, of course, like like we mentioned there, Wall Street's
[00:05:32] Street's reaction not so great on
[00:05:34] on that news. Why are investors pulling
[00:05:37] pulling back here? Well I think there
[00:05:42] there are concerns about how innovative innovative technologies can be integrated
[00:05:46] integrated together. What the market
[00:05:48] market may not fully appreciate is
[00:05:50] is the great success Marvell has has had integrating acquisitions
[00:05:54] acquisitions to date. Its recent
[00:05:57] recent acquisitions of celestial celestial AI as well as X-con technologies
[00:06:00] technologies are a large justification justification for the 80 billion
[00:06:04] billion revenue target that the company
[00:06:05] company has set out for fiscal 2031.
[00:06:10] 2031. And because it's directly anticipated
[00:06:11] anticipated the needs of its customers
[00:06:16] customers and the forward looking looking projection for AI accelerators
[00:06:19] accelerators indicates how much of of an opportunity there is here at
[00:06:22] at future. And we forecast that 20
[00:06:24] 20 million AI accelerators shipped shipped in 2030. There's thousands
[00:06:27] thousands of dollars per accelerator
[00:06:29] accelerator for optical scale up.
[00:06:32] up. That's going to be a massive
[00:06:34] massive boon to Marvell. All right right Brendan, really appreciate
[00:06:37] appreciate you getting us across across those details. And for that
[00:06:40] that analysis there. Now it's a big
[00:06:42] big week ahead for Wall Street with with the US midterms on Tuesday,
[00:06:46] Tuesday, the Democrats expected to to take control of the House of Representatives
[00:06:50] Representatives while Senate control control remains uncertain. We've
[00:06:52] We've also got a couple of earnings earnings on deck with tech giant
[00:06:55] giant Apple reporting on Monday and and McDonald's later in the week.
[00:06:59] week. Investors continue to await
[00:07:02] await October's job reports out of
[00:07:04] of the US, which is scheduled for for release on Friday. Well, let's
[00:07:08] let's get more analysis on all of of the happenings in the markets
[00:07:11] markets this week with chief investment investment strategist at Saxo. Great
[00:07:14] Great to be able to speak with you. you. Let's start on, you know, talking
[00:07:18] talking about tech earnings. Last Last week we saw a massive sell off
[00:07:21] off on tech earnings. And we are are going into this week getting
[00:07:24] getting earnings from Apple as well. well. What are markets looking ahead
[00:07:26] ahead to this week in terms of that. that. Good morning and thank you
[00:07:30] you for having me. First of all no no one now but yes last week's AI
[00:07:33] AI sell off certainly has gotten
[00:07:35] gotten investors quite nervous. Right. Right. Because if you were to look
[00:07:38] look at it, you know, from a very very broad lens, I think the earnings earnings were pretty solid. You know,
[00:07:42] know, you look at cloud growth across
[00:07:45] across the hyperscalers from Amazon Amazon to Alphabet and Microsoft,
[00:07:48] Microsoft, all of them reported pretty pretty solid numbers there. But of
[00:07:51] of course, I think as much as we we know that AI demand is for real,
[00:07:55] real, it is expanding. I think much
[00:07:57] much of the concern is what is the
[00:07:59] the cost to deliver those kinds of
[00:08:02] of applications, right. And the investors investors are really nervous about
[00:08:05] about that aspect of it. So certainly, certainly, I think a very strong
[00:08:08] strong case of AI demand, but not not such a strong case of investment
[00:08:11] investment here. Investors getting getting selective rotating into a
[00:08:13] a little bit more of safe haven trades
[00:08:16] trades while we wait for the real real productivity benefits of the
[00:08:20] the AI trade to really show up. I I think that's the confusion right
[00:08:22] right now. You've invested enough. enough. Where are the productivity
[00:08:25] productivity benefits? So going into into this week, of course Apple not
[00:08:29] not so much. And a signal of where
[00:08:31] where the AI trade goes. But Apple Apple has certainly overtaken Nvidia
[00:08:35] Nvidia as well. Now to be the largest largest market cap company. And it
[00:08:38] it still faces a lot of questions questions right. It launched duo duo recently and there have been
[00:08:42] been some complaints regarding that. that. So what kind of an iPhone demand
[00:08:46] demand really continues to be seen seen for their for its products.
[00:08:48] products. And how much of the services services side can continue to get
[00:08:52] get a share of its revenues. I think think those would be some key questions,
[00:08:56] questions, but there's AMD today today and month end, we'd be looking looking at Nvidia really to get more
[00:09:00] more signals on that AI story. And And of course this is all fading
[00:09:03] fading into the health of the US US economy as well. And we're getting
[00:09:07] getting the US jobs report out this this week. What are you looking out
[00:09:10] out for then how that is going to to signal the health of the US economy?
[00:09:13] economy? Absolutely. So you know know I mean of course we've just
[00:09:15] just heard from the Federal Reserve
[00:09:19] Reserve recently and they did deliver deliver a pause on their policy stance.
[00:09:22] stance. But I think the market still still anticipating that we could
[00:09:25] could get one more rate hike before before the end of the year. And the
[00:09:29] the two most important variables variables that really decide whether whether that happens or not will
[00:09:32] will be the inflation report and and the jobs report. In my opinion,
[00:09:36] opinion, it is the inflation report report that matters more. Of course,
[00:09:38] course, the jobs report will be important, important, but if we see some level
[00:09:42] level of weakening, I don't think think it really in one report would
[00:09:45] would be able to justify that the the fed needs to pause pause right
[00:09:49] right now and start cutting rates. rates. No we're not there yet. Certainly Certainly inflation remains the bigger
[00:09:52] bigger driver of rates right now. now. But having said that, of course course there'll be knee jerk, especially
[00:09:56] especially as it comes after the the midterm elections. And of course course investors are really conscious
[00:10:00] conscious about whether the economy economy is slowing down and they're they're facing affordability issues
[00:10:04] issues and job crisis as well, I
[00:10:06] I think. Does that really stay within within a part of the economy, which
[00:10:10] which it is right now, or does this this really expand into a broader,
[00:10:13] broader, broader economic segments segments as well? I think that would would be some of the important signals
[00:10:16] signals that we would want to watch watch out in the jobs report this this Friday. And just very briefly,
[00:10:20] briefly, I mean, on the midterms, midterms, how are we expecting that
[00:10:22] that to be in the markets and how how are we expecting that to, I guess,
[00:10:26] guess, change at the end of the week? week? I mean, certainly I think that that would be the biggest driver.
[00:10:29] driver. You know, at least this week week because there is an expectation
[00:10:32] expectation that we get a divided divided Congress, although I would
[00:10:36] would say divided Congress is usually usually good for the markets. You You know, you wouldn't expect that
[00:10:39] that massive fiscal stimulus and and the run higher that we've seen
[00:10:43] seen in bond yields, you know, earlier earlier a few weeks back, I think
[00:10:46] think that could be stalled. We could could see bonds really performing performing a little bit better. But
[00:10:50] But of course I think the AI trade trade really still faces a lot of
[00:10:54] of questions. Whether or not we get get the Democrats getting the House
[00:10:58] House or not. So really great to to be able to get your outlook for
[00:11:01] for this week there. That's it from from this edition of Business Today. Today. Do stay with us. I'll be back
[00:11:05] back at the top of the hour.
[00:14:31] My dad was a farmer, but he also had a radio talk show for farmers
[00:14:34] farmers who called in with their their farming problems. He'd patiently
[00:14:38] patiently listened to every conflicting conflicting account of what was and
[00:14:41] and wasn't working. That was really really influential to how I approached
[00:14:44] approached my journalism. Building Building trust by taking the time
[00:14:47] time to understand a situation clearly
[00:14:49] clearly before reporting a story
[00:14:52] story in a 24 hour news cycle. Patients
[00:14:55] Patients can be so frustrating, but but it's a crucial tool. I'm Lucy
[00:14:59] Lucy Hockings on BBC News Now. Now
[00:15:03] Now on BBC News. A round up of the the day's sporting action plus talking
[00:15:06] talking points analysis and original
[00:15:08] original journalism. BBC Sport. Hello
[00:15:18] Hello there, I'm Olly Foster with with the latest sports headlines
[00:15:21] headlines here on BBC News. The boy
[00:15:23] boy racer from Bologna Antonelli
[00:15:26] Antonelli is Formula One's youngest youngest world champion, a rare win
[00:15:30] win at Anfield lifts the champions
[00:15:31] champions Arsenal to the top of the the Premier League, and Hibs come
[00:15:35] come out on top in the Edinburgh Edinburgh derby to reach the Scottish
[00:15:38] Scottish League Cup final.
[00:15:55] Hello there Kimi Antonelli is Formula One's youngest world champion
[00:15:59] champion and he says it's just