sooner. a new ai model. we look at why allegiant and retail investors could behind -- be behind goals record setting rally. president biden set to sign a bill forcing bytedance to sell or shutdown tiktok after the legislation passes the senate with bipartisan support. a check of markets in just a moment. let's get more on that tiktok ban or divest bill. the senate just voting to pass the measure. now the legislation also includes aid to ukraine, israel, and taiwan in one sweeping bipartisan approval. for more on this, we are joined by steven dennis in washington. thank you for joining us. so that bill basically waiting for the president. it's all but certain. the scene set for a legal battle.

how long could that drag on for? what does it mean for a debate around the first of november? >> i think there's already promises that the company will file a lawsuit, trying to overturn the law and say that it's unconstitutional. violating the first amendment right to free speech. but the lawmakers say that they are very confident they will prevail because this is a foreign controlled company and there's no right to free speech for a chinese company. the right to free speech is for the people on tiktok. so the argument is that this is very similar to regulations that the government has on who can own broadcast stations, for example. or radio stations. they've had these kinds of regulations in the past. of course, this is an immensely

popular social media network that 170 million americans are using. so that makes it such a valuable resource if you are the chinese government. this is something where it's going to piece -- be hard to see whether china will be willing to let it go. let the algorithm and the wealth of data that it has, potential access, turned over to the americans. it will be a long fight. the legislation itself is supposed to be resolved in this divestment within a year. that will be up to the courts to decide. paul: divestment within a year. that takes us past the u.s. election. in terms of a chinese response, the secretary of state talked about the hit to china. to what degree is this going to dominate the agenda?

>> i think it's going to become one of the big issues between the u.s. and china. if you think about it, there could be tit-for-tat things with retaliation. there are a lot of american companies doing business in china as well. so i think that is something to watch, whether this will have broader impacts on the overall relationship. very important economic and political relationship between the two countries. but one thing that was clear, talking to senators of both parties this week, is just how badly the lobbying effort, which was expensive by tiktok, to prevent this vote just backfired. senators were irate that even their own children were coming

under assault. the children that were using tiktok were getting inundated with messages saying, contact your senators to tell them to oppose this bill. they felt that was heavy-handed. we will see what happens next. i don't think there's a lot of love right now for china generally in the congress, certainly having this kind of control over something that half of americans are using. paul: yes. this battle has only begun. steven dennis there in washington. all right. let's take a look at how markets are faring. looks like a pretty positive day so far. avril: positive day. we are seeing stocks and currencies climb. it's really about the earnings. coming into this week, we knew

it would be a key test of whether u.s. equities could continue their bull run or even justify it. so far, tesla reported, we are seeing things quite promising. that's driving the rally in the asia-pacific today. the japanese, taiwan, south korean gauges are seeing more pronounced moves compared to the past two sessions. hong kong as well is one of the world's best performing markets. the hang seng has erase losses for the year. we are seeing a readthrough from the tech rally into the fx space as well as the korean won climbs thanks to stockmarket inflows, keeping an eye on the aussie after a hot inflation print. let's flip the board because i want to look under the hood and take a look at the ev complex and what is driving the moves in the asia-pacific. the hong kong listed peers of tech -- of tesla are climbing along with tesla's south korean

and taiwanese related suppliers. to be clear, it's a miss on sales. i think the acceleration of the launch of new models helped to allay concerns about its strategy. arguably, the lack of new models is what is driving sluggish growth for sales in china. among the chip names, we are seeing the south korean, taiwan, japanese ones that are climbing after texas instruments, seen as a bellwether for the sector, gave a pretty solid forecast. so that's driving the moves in the asia-pacific today. paul: thank you very much. tesla shares surged in late trading after a promise to accelerate the launch of more affordable models. that followed a decline in first-quarter profit margins and sales. let's get over to danny lee in beijing. it seemed like a very appealing

elon musk on the call, cracking a few jokes about alien objection. when it comes to low-priced models, what's coming next from tesla, they were coy. we don't know exactly what we are going to get. we might have to wait until august to find out. >> yeah. onto the serious stuff that elon musk needs to address. it's the lack of detail. but some detail in fact. the fact that elon musk tesla will be putting forward a low cost ev set of affordable models as early as next year rather than the back end of 2025. that brings forward the potential growth story for tesla . that's important because of what tesla is facing. low velo growth going forward. it doesn't have a lot of products out there that will help scale and drive its revenue. particularly because it does have a kind of model base that

is thin, getting older, not as refreshed as much. so far it is behind on peers, not just in the u.s. where the ev market is slowly growing but stalling in china where the world's biggest auto market and ev market is. it's on a tear and fighting for competition. tesla has been trying to drive its performance through price cuts but it has been struggling a little bit. this is why the affordable model is to try to drive some of that momentum back into stock in particular. >> the market was braced for a horrible quarter and a horrible quarter we got. we still saw the stock rising very aggressively after ours. this is the most short interest in tesla, 2.5 year high. is the stage set for another battle between the tesla short-sellers and the tesla true believers? >> yeah.

the true believers being the retail investors who believe in elon musk, believe in that story , particularly the robotaxi. therefore for someone like a tesla shareholder, it's been a beating as of late. as long as elon musk is focused on eking out those cost cuts, particularly with the job shedding last week, it is trying to pull itself forward onto products it thinks is going to help drive the stock forward. put it in a place where it can actually see the grounds that it doesn't have as much competition in. paul: danny lee in beijing. let's take a look at how we are shaping up in terms of u.s. futures. very much reflective of what we are seeing in asia right now. positive territory. s&p better by a third of 1%. the market will be looking to

see if that big after-hours jump in tesla translates to a big jump at the u.s. open the next day as well. let's take a look at currency markets as well. softness going on in the moment. the dollar spot index pulling back attack. we are closely watching the yen. we've been hearing more about the possibility of intervention as it hovers below that 155 level. we have a bank of japan meeting starting tomorrow. the boj has pledged that they are putting a floor under the yen and it will be a priority for them. let's get to wayne gordon, managing director of commodities and fx at ubs global wealth management. i want to start on currencies today. we've seen traders pairing their bets over the past few days about fed easing. do you feel this is now becoming a 2025 story, when we get rate cuts from the fed? what is that going to me for u.s. persistent dollar strength? >> i think it's a data-dependent

story. clearly the debtor -- data in the u.s. surprised us to the upside. i think they are looking forward. clearly there is evidence that it's inflation and it will moderate in the back end of the year. as we go into 2025, we started the year with a three to four rate cut view of the fed. we were pretty modest compared to some market expectations. as we move through the year, we have had to pair that back a little bit. we think that the most likelihood is to rate cuts. september and december targets at the moment. you've got the u.s. election in the middle which muddies the waters for the fed, or at least historically it has. so yes, a little bit of dollar strength. particularly given we have these pop up in geo-political risks as well.

the dollar has been performing very well as a safe haven currency. so these ongoing geopolitical risks will see the dollar on a bit of a rise into the middle of the year. that being said, there are currencies which can lead against that. the aussie dollar in particular is something you guys were talking about earlier. we had expected above expectation inflation print for today, given the way wagers are playing out and the tightness of the labor market in australia. so we have the aussie dollar, the most preferred currency for us. we have a target of the high 60's by the end of the year and into next year. for me, the aussie has been trading on the rates differentials. actually, things like copper and iron ore have recovered nicely with this pickup in manufacturing. we are starting to see it on a broader basis. globally, we think commodities

will be wed bid. paul: yeah. the aussie got a nice pump earlier as well on the hotter than expected first-quarter cpi print, suggesting that maybe the rba won't be easing anytime soon either. i want to talk to you about the yen as well. the bank of japan blessing -- pledging to prioritize instability in its next meeting. are there any measures that you are anticipating? will they be effective? >> i think definitely the short positioning in the yen is at extreme levels. so any comments by the bank of japan to some line in the sand for the yen around that 155 level is clearly going to create volatility in that context. in the end, the fundamentals for the yen's continue to reflect the differentials on the right

side. we think the bank of japan would remain very cautious in the current environment. as a consequence, we do expect that this 155 hard line in the sand definitely will have some resistance to it. as we go through the course of the rest of the year and into next year, we expect the yen to weaken. that being said, we have paired back yen weakness -- yen strength i should say as we go into next year. largely because of the trimming of our u.s. fed expectations for cuts in the back end of this year. so we still continue to expect the yen to recover. that may be delayed in the short term. that recovery might be a little bit less than we had anticipated earlier in the year. paul: all right. wayne gordon is sticking with

us. we want to get your views on commodities in a moment. still ahead, we will be talking to see peak and 90 who will be joining us to talk about his new ai business venture that's called --. why he decided to jump on the ai bandwagon. that interview coming up later on this hour. this is bloomberg. ♪

paul: gold's record-setting rally has puzzled some market watchers. pricer's -- prices have been rowing higher. with prices sagging this week, some believe the explanation may lie in china. for more on this, let's bring in our asia commodities reporter. ok. what's this theory? chinese consumers behind this gold rally, what's going on? >> china has been a huge market for gold for quite a long time.

we've seen persistent demand from the consumers and we've also seen the pboc buying up a lot of gold. recently, what we also noticed is a huge spike in volume of trading activity on the shanghai futures exchange. that's unusual. we are not seeing that volume of trading activity in the biggest futures market for gold in new york. we are seeing trading activity jump overnight in new york. it does suggest we are seeing a huge speculative demand in china playing out in more recent times on top of the physical demand. paul: all right. sybilla gross there in melbourne. wayne gordon is back with us. managing director of commodities and fx at ubs global met -- wealth management. i know you've been raising your gold forecast in view of firmer

demand. how much of this is a china caution story? where are the rest of the pressures coming from? >> in your intro, you really pointed out the challenges that many people have faced. usually a stronger dollar tends to mean lower gold prices. that couldn't have been further from the truth over the last couple of months. the key thing for us, part of the reason we lifted the forecast recently, i want to give you a sense around that. we had our forecast for 2003 in the short term. at a time when gold was trading close to 2400 announced. longer-term, we see diversification trade for gold continuing in a pretty strong way. it's the reason we have the 2500 forecast as we go into next year. i think the keys to this has been that china demand has been

undervalued. by many parts of the fundamental story. i think also a level of on road -- underreporting as well. it's often it -- difficult to get a handle of the flows going into china and where those flows are going to. the key thing for us is exports of gold to china have been very strong over the past and of last year and this year. on the back of that, i think official sector buying has also gone under the radar. of course, it's more difficult to track some of those flows. at least anecdotally, the demand for gold from the official sector has also been very strong. of course, these dynamics have been playing out in gold for the last couple of years. that's indeed -- often you saw

interest rates rising or real interest rates, key for gold, also rising and creating this interesting dynamic where some of those traditional drivers have not necessarily been driving the price of gold. overall, the consolidation we are seeing right now is probably expected from our perspective. as i said, we had a target of 2300. by the middle of the year. so this consolidation, we see it as healthy. obviously the spread between shanghai prices and london prices has been a feature. that's also very understandable from a fundamental perspective. you have a quota for gold into china. of course, there's been a lot of pressure on that quota because really, if you want to diversify your investments in china, there isn't much else. the real estate market has been under incredible pressure. the stock market has been highly volatile.

gold has been very low in comparison to those other ideas. for us as a wealth manager, we've always advocated to use gold as a diversification within a broader portfolio context. that's what is important to keep in mind here. paul: just a couple minutes left. i want to get your views on oil as well. we've seen tensions in the middle east abating somewhat. the price has been ticking up over the past 24 hours or so. what's your view on oil? are you a buyer of energy names? >> look, we like oil. we've been trading oil in a range between u.s. 85 per barrel and 95 per barrel. we like the ownership of diversified energy in particular. u.s. energy is a key call for us. so from the view perspective, the market is undersupplied. the upside to growth in the u.s. of course has also led to an upside on the demand for oil.

of course, what's keeping oil a little bit more subdued in the geopolitical spikes is largely around, there's spare capacity sitting in opec. saudi arabia can respond with that spare to his the if required. of course, they've been very much sitting on their hands with respect to any movements of increasing capacity. seeing the oil market to be tight, we think it will remain tight going into the summer. we expect seasonal demand for gasoline to tick up. we think oil prices can continue to maintain this range. that being said, the energy companies with a good opportunity to not only be buying in, it doesn't quite reflect these more elevated levels of oil prices, at least the valuations don't. also the fact that they are retaining cash to shareholders. we think this is an important

dynamic that people should still be allocating to, these traditional energy companies within the portfolio context over the longer-term. in the end, demand for oil continues to rise and we think the price is well supported here. paul: all right. thank you so much for joining us with your insights. plenty more ahead. this is bloomberg. ♪ when you automate sales tax with ava you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

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paul: all right. i congratulate you on the nice wednesday that you might be having. 30% right now. the stock has been suspended because of this huge game that we've seen since the on latest

version of its generative ai model. very excited about that. we did have some bloomberg intelligence analysis for you which suggests although technological expertise and ai, it lacks a competitive edge and is a small player. my continue to struggle against alibaba and huawei. shares better by 31%. more to come. this is bloomberg. her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. people couldn't okaysee my potential. for.

so i had to show them. i've run this place for 20 years, but i still need to prove that i'm more than what you see on paper. today i'm the ceo of my own company. it's the way my mind works. i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper.

>> we can say that the relationship is getting worse. it's true. but it's getting worse quite slowly. there's more stability to the relationship. when there's conflict, the conflict does not escalate out of control. rather, the escalations are targeted and calibrated.

paul: that's the founder and president of eurasia group. he was speaking to us earlier around lack of silence between the u.s. and china. antony blinken is on his way. i suspect he will be having interesting conversations about tiktok divestment. we've got mainland markets about to head to their lunch break. here's how we are doing. csi 300 looking flat right now. elsewhere, some of the other benchmarks performing better. the shanghai composite better by one third of 1%. the offshore you want at the moment holding steady at 7.24. all right. we've got japan about to return from its lunch break. a look at what's been going on in japanese markets. very much a risk on sentiment today. avril: yeah. but we are also fast checking in on what we are seeing on the japanese currency. as you know, yen weakness doesn't show signs of stopping.

that's despite this chart which shows you the relative strength index. dollar-yen has been in overboard levels in the last two weeks. now you are watching that 155 level. our mliv contributors have been talking about the u.s. gdp numbers. that could potentially be the first window of when that reaches that level because steady growth is expected. that could mean stronger dollar. there's also been debate on just the levels of short positioning. i'm sure you get into that with our mliv colleague mark cudmore in a bit. let's take a look at what we are seeing in the japanese stock markets as well. the nikkei has been showing a more pronounced move today compared to the past two sessions. it's being driven by the chipmaking and the ev related stocks as we've got the likes of tesla and texas instruments improving some of the market sentiment thanks to what we heard post earnings.

that's driving the moves in the stock markets for now. paul: all right. thanks very much for that. let's steady on. japanese assets now. strategists say shorting the end is not a crowded trade right now. they also believe that any rally spurred by action from japanese authorities will likely end up being brief and far from brutal. for more on this, let's bring in mark cudmore. we are on the eve of the boj meeting. the bank of japan has suggested it is quite eager to put a floor under the yen. it's the ministry of finance's job to conduct intervention. how close are we to some sort of policy change from either the boj or the ministry of finance? >> so there's two sides to the story. the first is that there's almost nothing priced for the bank of japan. the risk reward is probably to

position for some kind of hawkish surprise. that makes sense. there's also president for friday afternoon new york intervention from the mof after disappointing bank of japan. that happened september 2022. so there's potential that we get intervention this week. however, there's a couple of other qualifiers here for generally why i remain very bearish on the yen even if the risk were wars -- risk reward is less advantageous. people have gotten excited by the cftc short positioning. it's only a small subset of the market. it's not a catalyst for the trend. it can give momentum if it really rebounds along way. it needs a separate catalyst. second of all, there's no reason for the mof to come in at the moment. sure, yen is at a multi-decade low against the dollar.

the pace of the decline is not drastic and it's in line with fundamentals. until u.s. yields start turning around, i don't see intervention really working. i think the positioning is not too stressed. the discretionary traders have been -- reluctant to get short on the yen. i think that even if we do get intervention which could be more powerful, that will be seen as a chance to resort the yen. traders are standing aside at the moment. overall the story is, japan offers negative real yields. not up to the attractive growth story. it is suffering from commodities. this is not a currency with any major fundamentals behind it. it is cheap but cheap things can keep on getting cheaper if there's no reason for them to rally. paul: there's a lot of factors against them. chief among them is those fed

easing bets. i think we are down to one or two potential rate cuts this year. that in mind, even if intervention did get compacted, is it worth it? >> exactly. i think that the mof will be very reluctant to intervene. they want to keep verbal intervention because they know if they come in, it matters for a few days or so but ultimately the world will go come you given us better levels to sell the yen. that is holding them back from action rather than words. you are right. ultimately, the trend for higher u.s. yields has more to go. where is the growth slowed down? where is the deflationary trend? there's no justification at the moment. there's nothing obvious for why

the fed would cut rates at the moment. overall, there is room for u.s. yields to move higher, putting pressure on dollar-yen. therefore, this is the weaker intervention risk is a risk only because the bank of japan meeting. this is not the week where people want to belong dollar-yen which is why discretionary traders are standing aside. if we get through the week without intervention, they will pile in next week either way. people are going to push dollar-yen higher next week. it's just what we push it from. paul: on the subject of piling end, we saw tesla having a huge surge after hours today even though the first quarter set of numbers was disappointing as we thought it would be. the outlook was good and it seems like investors and traders have decided, one swallow does make a summer. are the balls all back on equities now? >> as you know, i am deeply in the bullish camp for stocks all year. i don't get down to the micro. i'm not studying my tesla

suddenly rebounded now. it has had a very large decline. i don't look at the single name stocks. it's a good sign for bulls like me that even mega cap tech -- with they are driving this rebound right now. i think the rally in stocks should expand. emerging markets. generally, there should be a broadening out of the rally. the micro factors are good. global growth is picking up from pessimistic expectations. we have central banks where they still have a very dovish reaction function. sure, we will see higher yields. we are seeing higher yields for the best possible reasons. growth is stronger than people thought. is not because of inflation with no growth. this is a positive stock environment. it's a growth environment where consumers keep spending. earnings will keep growing. paul: as you finished off your

thesis there, jp morgan with its target for the s&p at 4200. so you have a bit of competition from the bears when it comes to your outlook. what are the risks to your bullish outlook? >> genuinely, i don't see major near-term risks. at some point, obviously like any bull market, it will come to an end. but i don't see why it's going to come to an end on a short-term basis. people worry about valuations. assets are expensive. but they are not crazily expensive. they are expensive for a region. because the macro backdrop is good. you look at those big risks that will take down the market. is it commercial real estate? no. not systemic. is it regional banks in the u.s.? no. 1000 could go bankrupt and we would still have to many in the

u.s.. it would be problematic but we know that sadly the u.s. economy is bifurcated. it's driven by a bunch of companies and a bunch of states. therefore, that will keep the economy charging. it will -- keep consumer spending. i'm not seeing a systemic risk. there could always be a black swan. by definition, it's a risk that i cannot identify or predict. that's the whole point of something that's not on my radar yet. otherwise, i expect volatility to continue because yields will continue to get higher and therefore raise the discount rate which makes it harder for stocks. they are rising for the right reason. that's why stocks will continue to climb for now. maybe something will change in a few months. we are a ways offs yet. paul: we can't talk about the unknown unknowns. mark cudmore there. thanks for joining us. let's take a look at the rupiah. it's getting fairly soft at the moment.

16,000. 169 right now. it slipped about 5% since the start of the year. this is a very live currency at the moment. we are awaiting bank indonesia's policy decision. we are expecting to get that in a few hours. the central bank could postpone monetary easing until later on this elderly 25 as it waits out some of the uncertainty around the fed rate path as well as the continued tension in the middle east. so for more on the path of the rupiah, let's get over to claire job. you are following the bank of indonesia today. not consensus about this decision. what are we expect -- expecting? >> cooler heads may prevail today. the central question is, is the weakness temporary or will it be persistent?

after a huge drop, we are seeing risk on sentiment coming back. the rupiah getting a bit of relief, it's on its third straight day of gains. it's up as much as 0.4% today. that may be enough to convince policymakers to hold at 6% and rely on raising its hawkish stance and saying, we will use our interventions in the ndf markets to whether any volatility that may come up. that being said, we can't rule out any surprises when it comes to b.i.. it's not averse to surprising the markets. if there's any rupiah weakness, expect the decision to come down to the wire. if we are looking at how b.i. positions itself in previous decisions, it has a big facet to prevent any further weakness from hitting the rupiah hard. paul: yeah. there must be a temptation to deliver a surprise rate increase like how they did back in

october. what's the balance of probabilities around that? >> so there's a slim majority of economists who see rate hikes could still happen now. we do have the benefit of hindsight from what they did in october. the rate hike that they delivered then ended up spurring more outflows as investors tended to view it as a panic rate hike instead. so there's a sense that 25 basis points might be not -- might not be enough to stand against bigger external factors. the fed rate pivot is getting delayed. the bank of asia will want to stay calm and instead preserve its bullets and not waste it on any knee-jerk reactions. that means the rate cuts for this year may be delayed. it signaled earlier that it may happen as soon as the second half of the year. that may be pushed back to the fourth quarter or 2025. bank indonesia is not alone in the fight. it's become a get -- a

government effort to stabilize the rupiah. you also have the government telling state enterprises to stop making large dollar purchases. it's also telling exporters to start repatriating dollar earnings just to start building up the dollar war chest again. paul: awaiting the bank of indonesia decision. still to come, our extrusive interview with the former tech mentor ceo. we hear why he's decided to bet big on ai. he has a new business venture. we hear all about it shortly. this is bloomberg. ♪

paul: let's take a look on how we are tracking on indian markets at the moment. the sensex showing massive gains -- moderate gains at the open. gains are fairly broad-based as well. indian rates traders pushing back expectations for an interest rate cut. meanwhile, maybe a little bit too far according to bank of america you get the reserve bank of india likely to cut its key policy rate by 100 points in the next two years.

but there's a feeling from bank of america that maybe that's a little bit too aggressive. if we take a look at our stocks, well it's in line with what we've seen across the rest of asia at the moment. the sensex better by a quarter of 1%. the nifty rising by a similar amount. pretty much echoes the risk on tone that we've seen across the region. we are still waiting to connect with our next guest. while we achieve that, we will take a short break and we will be back shortly. this is bloomberg. ♪

paul: shares of europe's big where -- biggest software company rose the most since january after it forecast record revenue expansion. the cfo told us it's all down to the boom in artificial intelligence. >> the advent of ai has clearly propelled the story of the transformation for the cloud to move our customers from -- resulting in an uptick of 25% in our cloud revenues. our more forward-looking ccv which is the 12 months ahead

subscription revenues, we've contractually locked in, even growing at 28%. record growth. that's driven really by the core offering we have in the cloud which is called the air sweet. it has generated in excess of 30% for nine quarters in a row now. >> what is the demand in terms of the specific applications of artificial intelligence that you see most commonly invested in by the companies who are your clients. >> it's a broad set of applications throughout the enterprise on hr, finance, the supply chains. there's no exclusion. it's really broad. we've brought 30 use cases recently to the market. we have another 100 to come. we have more than 27 -- 27,000 customers using ai powered use cases. the 300 million users we have right now on the cloud are benefiting to make themselves more productive and to fight raising inflation. >> how much are you waiting

market share? are you capitalizing on the incredible demand we see for artificial intelligence? >> undoubtedly, we meant -- win market share. 30% growth. the market is in the low to mid teens. that's a tremendous outperformance. more than twice the performance of the market. >> who are you gaining market share from in particular? >> sometimes it's homemade solutions. it's also against our key competitors. it's also the fact that sap has been more focused on the installations of the software deployed by the customers. we can convert that huge customer base into the cloud. that drives the growth. paul: that's the sap cfo speaking to bloomberg. our next guest has just launched a venture called ai on os, joining us exclusively now.

you might remember him for playing a key role in the transformation journey as well. thank you so much for joining us. first of all, i want to talk through this new venture of yours, ai on os. what is it and how does it work? >> thank you. i think we are very excited. technology has never had such an financial leap as what we have seen with not only the conversational i i -- ai but cognitive ai, all coming into shape to create solutions. number two, we work with partners who are willing to go

the extra mile. [inaudible] defined how to not only structure the data but also bring it for usage, taking into account the compliances of each country. the third part is customer experience. in a normal situation, i think everything goes fine. it's only when there's a disruption, when there's a flood. we just saw the floods in dubai. we see the hurricanes in different parts of the world. i think what we see is, that's a time to make sure that we start seeing things from a customer point of view. this particular segment has done well on a localized level.

i think there's a requirement of combining pieces of technology and powering ai for the customer. >> a lot of -- paul: a lot of the ai power is in large companies at the moment. can indian startups compete with these giants, and should they? >> i think that's the best part. on one hand, you just had the shargh or shareholder. we work with sap and microsoft. we will definitely be working with some of the startups. what we are doing is actually creating an operating system. that's why we named the company as ai on os. that os will integrate what is already available. we are not here to reinvent everything. i'm very happy that there is so

much recognition that ai with human touch -- that's what we are all about. paul: so where does india have an advantage in the ai space? how much money is there to be made in the sector? >> you know, ultimately we are healed -- here to build an institution. we are here to create a service which appeals to our customers, to our own people, and which is also relevant. so i'm sure there's a net business effect. at this stage, we are having fun creating it as an institution. this word means everlasting. i believe we are creating a great institution. paul: are there potentially some risks here as well? places like india, the

philippines. a lot of coding and call center work happens there. do you think generative ai is threatening jobs in these industries? >> i mean the fact is that there would be some jobs which will get lost because they will get automated. the good news is, overall it's becoming so large that the new jobs will get created. i personally believe that upscaling and creating new skills is india's advantage. i would say india is ready for that advantage. paul: all right. thank you so much for joining us. executive vice chair of ai on os. all right. let's take a look at how we are tracking on markets.

we are closely watching any stock related to tesla. we saw tesla have that huge after hours move. the first quarter wasn't much to write home about that we expect the outlook will be warmly received by investors. tesla promising something, be it a new car or a robotaxi, coming up on august 8. chip stocks as well. a suspension after that 31% jump. that's it from bloomberg markets asia. daybreak middle east and africa up next. this is bloomberg. ♪

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