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[00:00:03] Live from Singapore now on BBC
[00:00:06] News, Business Today. The world's
[00:00:15] world's largest cryptocurrency. Exchange Exchange reopens after a massive
[00:00:18] massive cyber attack as Binance users
[00:00:21] users withdraw $3.6 billion worth worth of digital assets. And the
[00:00:25] the deal rumours are swirling with
[00:00:27] with reports that chip maker Marvell Marvell Technology is gearing up
[00:00:31] up to buy Nvidia backed Lumentum.
[00:00:39] Lumentum. Hello and welcome to Business Business Today. I'm Vandhna Bhan
[00:00:43] Bhan Binance, the world's largest largest cryptocurrency exchange,
[00:00:47] exchange, reopened on Sunday after after a record hack last week, with
[00:00:50] with users rushing to withdraw their
[00:00:52] their digital assets from the platform.
[00:00:54] platform. The firm had suspended suspended all transactions in the
[00:00:57] the wake of the incident, which impacted
[00:01:01] impacted $6.3 billion worth of digital
[00:01:03] digital assets. Major organisations, organisations, including the FBI,
[00:01:06] FBI, have accused North Korea of of being responsible for the cyber
[00:01:10] cyber attack, which is said to be
[00:01:12] be the largest hack in history. Our Our Asia business reporter Archana
[00:01:15] Archana Shukla explains how damaging
[00:01:17] damaging this hack has been 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
[00:01:29] billion moved. And you know, it is is somewhat reflective in the withdrawals
[00:01:33] withdrawals that happened right after
[00:01:34] after the exchanges resumed trading
[00:01:37] trading $3.6 billion of net outflow
[00:01:39] outflow when on Sunday in phases,
[00:01:42] phases, Binance reopened withdrawals withdrawals and deposits. And that
[00:01:45] that somewhere shows the concern concern that the customers have.
[00:01:49] have. You know, it is the largest
[00:01:51] largest crypto exchange. And if a
[00:01:53] a hack of this nature can happen, happen, there is anybody's money
[00:01:56] money safe. It has also heightened heightened some amount of concern
[00:01:59] concern on the use of artificial artificial intelligence for such
[00:02:02] such attacks. You know, while you
[00:02:05] you know, Binance quickly got its
[00:02:08] its hand around this hack, this incident
[00:02:11] incident and they moved very swiftly swiftly to assure investors that
[00:02:14] that they would be bearing all the the losses and the money would be
[00:02:18] be safe within the crypto exchange.
[00:02:20] exchange. But it does damage some
[00:02:22] some bit of confidence in the industry.
[00:02:25] industry. For now, 95% of the assets
[00:02:28] assets have been restored, Binance Binance has said, and that the remaining
[00:02:31] remaining ones that they are still still figuring out how to bring that
[00:02:34] that back. It also raises questions
[00:02:37] 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
[00:02:44] started with a very ordinary engineers engineers laptop. However, later
[00:02:47] later Binance said that possibly
[00:02:49] possibly it was a more complex attack attack where, you know, the attackers
[00:02:53] attackers actually used softwares
[00:02:55] 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.
[00:03:03] done. But it for now, about 90% of
[00:03:05] of the assets are back. The crypto
[00:03:08] crypto exchange is back into trading trading with withdrawals and deposits.
[00:03:12] deposits. And Binance says it would would be covering all the losses.
[00:03:16] losses. Now following on from that that cyber hack, Bitcoin payment
[00:03:19] payment software, BTC Pay is warning warning operators to shut down their
[00:03:23] their systems after reports that that hackers have been draining funds
[00:03:27] funds from online wallets. This latest latest attack adds fresh concerns
[00:03:30] concerns about security across the the cryptocurrency industry. BTC
[00:03:34] BTC Pay says it's investigating the the attacks and has not yet revealed
[00:03:38] revealed how many users may have have been affected or how much money
[00:03:42] money has been lost. Now US chip
[00:03:43] chip maker Marvell has reportedly
[00:03:46] reportedly bid for laser supplier
[00:03:48] supplier Lumentum in a deal valued valued at $83 billion. While the
[00:03:52] the two companies have yet to confirm confirm the news, there has been
[00:03:56] been reaction in their shares, with
[00:03:58] with Marvell stock falling 10%. Last
[00:04:00] Last Friday. A deal would give Marvell,
[00:04:03] Marvell, which buys lasers from Lumentum Lumentum more direct access to a
[00:04:07] a major supplier. It would also bring
[00:04:09] bring together two AI investor favourites favourites as strong demand has sent
[00:04:13] sent both companies sales and stocks stocks soaring this year. Well, for
[00:04:16] for more analysis on this, let's let's talk to Kirk Yang, founder
[00:04:20] founder and chairman of Kirkland Kirkland Capital. Really great to
[00:04:23] to be able to speak with you about about this, Kirk. And like we mentioned
[00:04:27] mentioned there, I mean Marvell is is already buying from Lumentum.
[00:04:30] Lumentum. So really what's the thinking
[00:04:32] thinking behind this deal to purchase
[00:04:34] purchase it altogether? Sure. Marvell
[00:04:36] Marvell has seen a trend for data
[00:04:39] data centre to go from copper to
[00:04:42] to laser to make the speed faster. faster. If you look at data centre,
[00:04:46] centre, the bottleneck today is not
[00:04:49] not CPU, GPU or even the high bandwidth bandwidth memory is the connection
[00:04:52] connection between servers and data
[00:04:54] data centre. That's why, as you mentioned,
[00:04:57] mentioned, Lumentum does fibre optics, optics, laser type of work. They
[00:05:00] They already work together. However, However, I think Marvell wants to
[00:05:03] to control the entire value chain, chain, so it's safer if they can
[00:05:07] can buy the company to be part of
[00:05:09] of Marvell because Lumentum makes makes optical components, whereas
[00:05:13] whereas under tight supply, even
[00:05:15] even the CEO said they are fully
[00:05:19] fully occupied fully capacity until
[00:05:21] until year 2029. That's why I think
[00:05:23] think to secure the supply of the
[00:05:25] the products, it's better to own
[00:05:27] own Lumentum outright. In addition
[00:05:31] addition Marvell is a leader DSP.
[00:05:33] DSP. They can also co-design a lot
[00:05:35] lot of products into DSP products products with luminous optical components
[00:05:39] components so they can provide a
[00:05:40] a better solution to their customers customers such as Google, Amazon
[00:05:44] Amazon and Microsoft to be competitive competitive against Broadcom, for
[00:05:47] for example. And Wall Street didn't
[00:05:50] didn't have a particularly good reaction reaction to this news. Why do you
[00:05:53] you think investors pulled back from
[00:05:56] from this? Sure. I used to be a sales
[00:05:59] sales analyst at Goldman Sachs and and Citi. That's one thing I do is
[00:06:02] is look at the potential share dilution.
[00:06:04] dilution. If you look at the Marvell
[00:06:07] Marvell the market cap is 176 billion.
[00:06:11] billion. Lumentum is about 76 billion. billion. So Marvell is only about
[00:06:14] about 2 to 3 times larger than Lumentum.
[00:06:18] Lumentum. In addition, Marvell has has only about $4 billion of cash
[00:06:21] cash on the balance sheet. That's
[00:06:23] That's not enough to buy Lumentum, Lumentum, so very likely Marvell
[00:06:26] Marvell will have to issue new shares
[00:06:29] shares to cause a dilution. I think think that's the biggest concern.
[00:06:32] concern. I think my view is doing doing the right thing by acquiring
[00:06:35] acquiring the technology to secure secure the supply. But from a share
[00:06:39] share price perspective, the major
[00:06:42] major dilution would be an issue. issue. Obviously this week we should
[00:06:45] should hear more confirmation, more more news from the company. When
[00:06:48] When confirmed. One concern is the
[00:06:51] the dilution. The other concern is is the premium that might need to
[00:06:54] to pay probably 20 or 30% premium. premium. So I think valuation perspective
[00:06:58] perspective that's the concern why why the share price went down after
[00:07:01] after the announcement of the potential. potential. Kirk really appreciate appreciate you putting all of that
[00:07:05] that into context for us. Kirk Yang.
[00:07:07] Yang. Now thousands of Virgin Media
[00:07:09] Media O2 staff face redundancy risk risk as the telecoms firm looks to
[00:07:13] to save money in the face of billions billions of pounds of debt and tougher
[00:07:17] tougher competition. The broadband broadband provider has not finalised
[00:07:20] finalised the number of roles to
[00:07:21] to be cut, but it is likely a sizeable
[00:07:25] sizeable chunk of its 16,000 workforce.
[00:07:27] workforce. That is according to what what the BBC understands. Virgin
[00:07:30] Virgin Media O2 has billions of debt debt on its balance sheet and is
[00:07:33] is tackling competition from both both smaller providers as well as
[00:07:37] as giants like BT, which has agreed agreed a deal to acquire rival TalkTalk,
[00:07:41] TalkTalk, a move which Virgin Media
[00:07:44] Media O2 has firmly opposed. Now Now Starbucks reported stronger than
[00:07:48] than expected comparable sales in in its most recent quarter and said
[00:07:52] said it would resume share buybacks buybacks as it turnaround plan to
[00:07:55] to improve the coffee chains performance performance reached its two year
[00:07:59] year anniversary. However, the coffee coffee chains latest quarterly revenue
[00:08:03] revenue figures and outlook for 2027
[00:08:05] 2027 fell short of forecasts as international
[00:08:08] international sales continue to trail trail domestic US sales. Well, let's
[00:08:11] let's get more with Heather Herzog,
[00:08:15] Herzog, executive director of research, research, at Growmark Institute. Institute. Heather, really great
[00:08:18] great to be able to speak to you
[00:08:21] you here. What is the strategy that
[00:08:23] that is working so well for Starbucks Starbucks domestically in the US?
[00:08:27] US? Well, they really had a massive
[00:08:30] massive turnaround in terms of operations. operations. So the new CEO came in
[00:08:33] in cut and slashed a lot of the stores, stores, which is sad for some of
[00:08:37] of the communities that are now missing
[00:08:38] missing a Starbucks. However, a real
[00:08:42] real focus on staffing and really really doubling down on a smaller
[00:08:45] smaller menu with more hero products products such as these, you know,
[00:08:49] know, drink mixers that my kids tend
[00:08:50] tend to love. This is what is really
[00:08:53] really driving the traffic into the
[00:08:55] the stores now. Global comp was up
[00:08:59] up significantly around 6.2%. Revenues Revenues were up about 2%. However,
[00:09:03] However, when you parse that out
[00:09:05] out and you look specifically at
[00:09:07] at China, the guidance fell to about
[00:09:11] about 1% versus 1.4%. And North America America is also slowing down. So
[00:09:15] So that is something we have to look look at when they start talking about
[00:09:18] about guidance. That's when we have
[00:09:20] have to, as investors become more more aware. What are you hoping to
[00:09:24] to see then from Starbucks in the the years ahead, especially in terms
[00:09:28] terms of how to bump up those sales
[00:09:32] sales in international audiences audiences like China? You know, selfishly,
[00:09:35] selfishly, I would like them to add add more stores because we're missing
[00:09:38] missing our Starbucks. However, when
[00:09:40] when it comes to international, they
[00:09:43] they really need to take almost the
[00:09:45] the same sort of operational guidance guidance that they applied to here
[00:09:48] here in North America and double double down on the hero drinks. That
[00:09:52] That is what is bringing in the store store traffic, especially with the
[00:09:56] the younger generations. When you you have these drinks that are going
[00:10:00] going viral on social media, kids kids want to come in. That's what's
[00:10:03] what's bringing that traffic in. in. And they remodelled a lot of
[00:10:06] of the stores. So it feels a lot lot different within the stores as
[00:10:09] as well. Look, we're also going into into silly Season Christmas. That's
[00:10:13] That's a hit time of the year for
[00:10:15] for Starbucks isn't it? I mean apart
[00:10:18] apart from the drinks they also have
[00:10:20] have a product and you see lines lines out the door for these mugs
[00:10:24] mugs that they sell or certain drink drink vessels that people put their
[00:10:27] their drinks in. It is really hitting
[00:10:30] hitting a mark. And I think again,
[00:10:32] again, it's because of that pared
[00:10:34] pared down focus on what is going going to sell and what is not. Instead
[00:10:37] Instead of having a huge skew mix, mix, they really just focus on very
[00:10:41] very specific product that is resonating resonating with the customers. And
[00:10:44] And if they can do that internationally, internationally, it'll be better better for them. You'll see a lot
[00:10:47] lot more results going into the next next couple quarters, certainly,
[00:10:51] certainly, and into the next couple couple of years. Heather, always always great to get your analysis
[00:10:54] analysis there. Executive director director of research at Parsons Gromek
[00:10:57] Gromek Institute. That's it from from Business Today. Do stay with with us. I'll be back at the top
[00:11:01] top of the hour with News Day. MUSIC
[00:14:31] MUSIC
[00:14:40] Being able to inspire someone
[00:14:42] is always the greatest joy. I saw
[00:14:45] saw Souza one time at the Grammys, Grammys, and she said that she studied studied some of my songs for their
[00:14:49] their songwriting, and I thought thought that that was the biggest
[00:14:51] biggest compliment ever. My support
[00:14:53] support for Ukraine is unwavering.
[00:14:57] unwavering. It is 100% when the big
[00:14:59] big names talk, they talk to us.
[00:15:03] us. And on BBC News, a round up of of the day's sporting action plus
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[00:15:09] and original journalism. BBC Sport.
[00:15:19] Sport. Hello there, I'm Olly Foster Foster with the latest sports headlines
[00:15:22] headlines here on BBC News. The boy
[00:15:24] boy racer from Bologna Antonelli
[00:15:27] Antonelli is Formula One's youngest youngest world champion, a rare win
[00:15:31] win at Anfield lifts the champions
[00:15:32] champions Arsenal to the top of the the Premier League, and Hibs come
[00:15:36] come out on top in the Edinburgh Edinburgh derby to reach the Scottish
[00:15:39] Scottish League Cup final.
[00:15:56] Hello there Kimi Antonelli is Formula One's youngest world champion champion and he