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00:00:06News, Business Today. MUSIC
00:00:13MUSIC The The world's largest cryptocurrency cryptocurrency exchange reopens after
00:00:17after a massive cyber attack as Binance
00:00:19Binance users withdraw $3.6 billion
00:00:21billion worth of digital assets. assets. And the deal rumours are
00:00:25are swirling with reports that chip chip maker Marvell Technology is
00:00:28is gearing up to buy Nvidia backed
00:00:32backed Lumentum. Hello and welcome
00:00:38welcome to Business Today. I'm Vandhna Vandhna Bhan Binance, the world's
00:00:42world's largest cryptocurrency exchange, exchange, reopened on Sunday after
00:00:46after a record hack last week, with with users rushing to withdraw their
00:00:49their digital assets from the platform. platform. The firm had suspended
00:00:53suspended all transactions in the
00:00:55the wake of the incident, which impacted
00:00:58impacted impacted $6.3 billion worth worth of digital assets. Major organisations
00:01:02organisations including the FBI, FBI, have accused North Korea of
00:01:05of being responsible for the cyber cyber attack, which is said to be
00:01:08be the largest hack in history. Well, Well, let's get more with our Asia
00:01:12Asia business reporter Archana Shukla. Shukla. Now, Arjuna, just get us
00:01:14us up to speed here and how damaging
00:01:17damaging this all is for Binance.
00:01:20Binance. Well, it did test the confidence confidence of the crypto industry.
00:01:23industry. It was the largest hack
00:01:25hack in the history at $6.3 billion
00:01:28billion moved. And you know it is is somewhere reflective in the withdrawals
00:01:32withdrawals that happened right after
00:01:33after the exchanges resumed trading
00:01:36trading $3.6 billion of net outflow
00:01:38outflow when on Sunday in phases,
00:01:41phases, Binance reopened withdrawals withdrawals and deposits. And that
00:01:44that somewhere shows the concern concern that the customers have.
00:01:48have. You know, it is the largest
00:01:50largest crypto exchange. And if a
00:01:52a hack of this nature can happen, happen, there is anybody's money
00:01:55money safe. It has also heightened heightened some amount of concern
00:01:58concern on the use of artificial artificial intelligence for such
00:02:02such attacks. You know, while you
00:02:04you know, Binance quickly got its
00:02:07its hand around this hack, this incident
00:02:10incident and they moved very swiftly swiftly to assure investors that
00:02:13that they would be bearing all the
00:02:14the losses and the money would be
00:02:17be safe within the crypto exchange. exchange. But it does damage some
00:02:21some bit of confidence in the industry.
00:02:24industry. For now, 95% of the assets
00:02:27assets have been restored, Binance Binance has said, and that the remaining
00:02:30remaining ones that they are still still figuring out how to bring that
00:02:34that back. It also raises questions
00:02:36questions on how did a hack of this this nature manage, you know, was
00:02:40was managed on such a big crypto crypto exchange because it started
00:02:43started with a very ordinary engineers engineers laptop. However, later
00:02:47later Binance said that possibly possibly it was a more complex attack
00:02:51attack where, you know, the attackers attackers actually used softwares
00:02:54softwares to hide some of the digital digital some of their digital tracks,
00:02:58tracks, which made it a bit difficult
00:03:00difficult to trace how this was done.
00:03:02done. But it for now, about 90% of
00:03:05of the assets are back. The crypto crypto exchange is back into trading
00:03:09trading with withdrawals and deposits.
00:03:11deposits. And Binance says it would would be covering all the losses.
00:03:14losses. All right Archana, appreciate appreciate you getting us up to speed
00:03:17speed there. Now following on from
00:03:20from that cyber hack Bitcoin payment
00:03:22payment software BTC pay is warning
00:03:24warning operators to shut down their their systems after reports that
00:03:28that hackers have been draining funds funds from online wallets. This latest
00:03:31latest attack adds fresh concerns
00:03:33concerns about security across the the cryptocurrency industry. BTC
00:03:37BTC pay says it's investigating the
00:03:39the attacks and has not yet revealed revealed how many users may have
00:03:43have been affected or how much money
00:03:45money has been lost. Now US chip
00:03:47chip maker Marvell has reportedly
00:03:50reportedly bid for laser supplier
00:03:52supplier Lumentum in a deal valued valued at $83 billion. While the
00:03:56the two companies have yet to confirm confirm the news, there has been
00:03:59been reaction in their shares with with Marvell stock falling 10% last
00:04:03last Friday. A deal would give Marvell,
00:04:06Marvell, which buys lasers from Lumentum Lumentum more direct access to a
00:04:10a major supplier. It would also bring bring together two AI investor favourites
00:04:14favourites as strong demand has sent
00:04:15sent both companies sales and stocks
00:04:18stocks soaring this year. Brendan Brendan Burke is research director
00:04:21director for semiconductor supply supply chain and emerging tech at
00:04:25at Futurum. Really great to be able able to speak to you here, Brendan.
00:04:28Brendan. Look we said there that that Marvell is already buying Lumentum
00:04:32Lumentum here. What's the thinking
00:04:34thinking behind this deal then to
00:04:36to purchase it altogether? Well good good morning and thank you for having
00:04:40having me. The thinking is that optical
00:04:43optical compute is the future of of AI accelerators and that Marvell
00:04:47Marvell needs to fully integrate
00:04:49integrate the value chain for scale
00:04:51scale up optics to be able to deliver
00:04:54deliver next generation accelerators accelerators to its hyperscaler customers.
00:04:58customers. What we've been hearing
00:04:59hearing at Futurum recently is that
00:05:03that hyperscalers can't wait to shift
00:05:05shift to optical to reach the next
00:05:07next tiers of high speed interconnect, interconnect, and they're pushing
00:05:11pushing the supply chain to get ready
00:05:13ready for it. Lumentum has a best
00:05:15best in class laser source for scale
00:05:19scale up and co-packaged optics,
00:05:20optics, and that's going to enable
00:05:23enable Marvell to define the future
00:05:25future of AI accelerators with its
00:05:28its existing and incoming customers. customers. Look, of course, like like we mentioned there, Wall Street's
00:05:32Street's reaction not so great on
00:05:34on that news. Why are investors pulling
00:05:37pulling back here? Well I think there
00:05:42there are concerns about how innovative innovative technologies can be integrated
00:05:46integrated together. What the market
00:05:48market may not fully appreciate is
00:05:50is the great success Marvell has has had integrating acquisitions
00:05:54acquisitions to date. Its recent
00:05:57recent acquisitions of celestial celestial AI as well as X-con technologies
00:06:00technologies are a large justification justification for the 80 billion
00:06:04billion revenue target that the company
00:06:05company has set out for fiscal 2031.
00:06:102031. And because it's directly anticipated
00:06:11anticipated the needs of its customers
00:06:16customers and the forward looking looking projection for AI accelerators
00:06:19accelerators indicates how much of of an opportunity there is here at
00:06:22at future. And we forecast that 20
00:06:2420 million AI accelerators shipped shipped in 2030. There's thousands
00:06:27thousands of dollars per accelerator
00:06:29accelerator for optical scale up.
00:06:32up. That's going to be a massive
00:06:34massive boon to Marvell. All right right Brendan, really appreciate
00:06:37appreciate you getting us across across those details. And for that
00:06:40that analysis there. Now it's a big
00:06:42big week ahead for Wall Street with with the US midterms on Tuesday,
00:06:46Tuesday, the Democrats expected to to take control of the House of Representatives
00:06:50Representatives while Senate control control remains uncertain. We've
00:06:52We've also got a couple of earnings earnings on deck with tech giant
00:06:55giant Apple reporting on Monday and and McDonald's later in the week.
00:06:59week. Investors continue to await
00:07:02await October's job reports out of
00:07:04of the US, which is scheduled for for release on Friday. Well, let's
00:07:08let's get more analysis on all of of the happenings in the markets
00:07:11markets this week with chief investment investment strategist at Saxo. Great
00:07:14Great to be able to speak with you. you. Let's start on, you know, talking
00:07:18talking about tech earnings. Last Last week we saw a massive sell off
00:07:21off on tech earnings. And we are are going into this week getting
00:07:24getting earnings from Apple as well. well. What are markets looking ahead
00:07:26ahead to this week in terms of that. that. Good morning and thank you
00:07:30you for having me. First of all no no one now but yes last week's AI
00:07:33AI sell off certainly has gotten
00:07:35gotten investors quite nervous. Right. Right. Because if you were to look
00:07:38look at it, you know, from a very very broad lens, I think the earnings earnings were pretty solid. You know,
00:07:42know, you look at cloud growth across
00:07:45across the hyperscalers from Amazon Amazon to Alphabet and Microsoft,
00:07:48Microsoft, all of them reported pretty pretty solid numbers there. But of
00:07:51of course, I think as much as we we know that AI demand is for real,
00:07:55real, it is expanding. I think much
00:07:57much of the concern is what is the
00:07:59the cost to deliver those kinds of
00:08:02of applications, right. And the investors investors are really nervous about
00:08:05about that aspect of it. So certainly, certainly, I think a very strong
00:08:08strong case of AI demand, but not not such a strong case of investment
00:08:11investment here. Investors getting getting selective rotating into a
00:08:13a little bit more of safe haven trades
00:08:16trades while we wait for the real real productivity benefits of the
00:08:20the AI trade to really show up. I I think that's the confusion right
00:08:22right now. You've invested enough. enough. Where are the productivity
00:08:25productivity benefits? So going into into this week, of course Apple not
00:08:29not so much. And a signal of where
00:08:31where the AI trade goes. But Apple Apple has certainly overtaken Nvidia
00:08:35Nvidia as well. Now to be the largest largest market cap company. And it
00:08:38it still faces a lot of questions questions right. It launched duo duo recently and there have been
00:08:42been some complaints regarding that. that. So what kind of an iPhone demand
00:08:46demand really continues to be seen seen for their for its products.
00:08:48products. And how much of the services services side can continue to get
00:08:52get a share of its revenues. I think think those would be some key questions,
00:08:56questions, but there's AMD today today and month end, we'd be looking looking at Nvidia really to get more
00:09:00more signals on that AI story. And And of course this is all fading
00:09:03fading into the health of the US US economy as well. And we're getting
00:09:07getting the US jobs report out this this week. What are you looking out
00:09:10out for then how that is going to to signal the health of the US economy?
00:09:13economy? Absolutely. So you know know I mean of course we've just
00:09:15just heard from the Federal Reserve
00:09:19Reserve recently and they did deliver deliver a pause on their policy stance.
00:09:22stance. But I think the market still still anticipating that we could
00:09:25could get one more rate hike before before the end of the year. And the
00:09:29the two most important variables variables that really decide whether whether that happens or not will
00:09:32will be the inflation report and and the jobs report. In my opinion,
00:09:36opinion, it is the inflation report report that matters more. Of course,
00:09:38course, the jobs report will be important, important, but if we see some level
00:09:42level of weakening, I don't think think it really in one report would
00:09:45would be able to justify that the the fed needs to pause pause right
00:09:49right now and start cutting rates. rates. No we're not there yet. Certainly Certainly inflation remains the bigger
00:09:52bigger driver of rates right now. now. But having said that, of course course there'll be knee jerk, especially
00:09:56especially as it comes after the the midterm elections. And of course course investors are really conscious
00:10:00conscious about whether the economy economy is slowing down and they're they're facing affordability issues
00:10:04issues and job crisis as well, I
00:10:06I think. Does that really stay within within a part of the economy, which
00:10:10which it is right now, or does this this really expand into a broader,
00:10:13broader, broader economic segments segments as well? I think that would would be some of the important signals
00:10:16signals that we would want to watch watch out in the jobs report this this Friday. And just very briefly,
00:10:20briefly, I mean, on the midterms, midterms, how are we expecting that
00:10:22that to be in the markets and how how are we expecting that to, I guess,
00:10:26guess, change at the end of the week? week? I mean, certainly I think that that would be the biggest driver.
00:10:29driver. You know, at least this week week because there is an expectation
00:10:32expectation that we get a divided divided Congress, although I would
00:10:36would say divided Congress is usually usually good for the markets. You You know, you wouldn't expect that
00:10:39that massive fiscal stimulus and and the run higher that we've seen
00:10:43seen in bond yields, you know, earlier earlier a few weeks back, I think
00:10:46think that could be stalled. We could could see bonds really performing performing a little bit better. But
00:10:50But of course I think the AI trade trade really still faces a lot of
00:10:54of questions. Whether or not we get get the Democrats getting the House
00:10:58House or not. So really great to to be able to get your outlook for
00:11:01for this week there. That's it from from this edition of Business Today. Today. Do stay with us. I'll be back
00:11:05back at the top of the hour.
00:14:31My dad was a farmer, but he also had a radio talk show for farmers
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00:14:52story in a 24 hour news cycle. Patients
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00:14:59Lucy Hockings on BBC News Now. Now
00:15:03Now on BBC News. A round up of the the day's sporting action plus talking
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00:15:18Hello there, I'm Olly Foster with with the latest sports headlines
00:15:21headlines here on BBC News. The boy
00:15:23boy racer from Bologna Antonelli
00:15:26Antonelli is Formula One's youngest youngest world champion, a rare win
00:15:30win at Anfield lifts the champions
00:15:31champions Arsenal to the top of the the Premier League, and Hibs come
00:15:35come out on top in the Edinburgh Edinburgh derby to reach the Scottish
00:15:38Scottish League Cup final.
00:15:55Hello there Kimi Antonelli is Formula One's youngest world champion
00:15:59champion and he says it's just