Deadly Taiwan Earthquake, Biden Escalates Criticism of Israel

Bloomberg Audio Studios, Podcasts, radio News. Good morning, I'm Nathan 0:00:10.840 --> 0:00:13.800 Hager and I'm Karen Moscow. Here are the stories we're 0:00:13.840 --> 0:00:14.600 following today. 0:00:14.760 --> 0:00:16.960 Karen, we'll have more on markets in a minute. First, 0:00:17.000 --> 0:00:20.360 a developing story. Taiwan has been hit by its strongest 0:00:20.360 --> 0:00:23.479 earthquake in twenty five years. At least seven people have 0:00:23.520 --> 0:00:26.720 been killed more than seven hundred injured during the seven 0:00:26.760 --> 0:00:29.560 point four magnitude quake on the east of the island. 0:00:29.840 --> 0:00:33.360 Dozens of buildings were leveled. Bloomberg's Adrian Kennedy is in 0:00:33.400 --> 0:00:35.880 the capital, Taipei and begins our team coverage. 0:00:36.120 --> 0:00:38.479 Taipei right now is back to normal. There cows and 0:00:38.600 --> 0:00:42.159 motorcycles on the street. We're operating for our offices here normally. 0:00:42.320 --> 0:00:45.600 You know, Taiwan people are pretty resilient. They're used to earthquakes, 0:00:45.720 --> 0:00:49.560 they used to severe flooding and typhoons. Is a phillly natural, 0:00:49.600 --> 0:00:53.040 disaster prone island on the east coast. That is an 0:00:53.120 --> 0:00:56.120 area which is more remote. It's cut off for much 0:00:56.120 --> 0:00:59.280 of the island by mountains. We do have reports of 0:00:59.400 --> 0:01:02.160 some houses haven't collapsed. We do have some reports that 0:01:03.080 --> 0:01:06.720 rescues being underway for people who may be trapped in 0:01:06.760 --> 0:01:07.600 those houses naw. 0:01:07.640 --> 0:01:10.840 Bloomberg's Adrian Kennedy says tsunami warnings were issued in parts 0:01:10.840 --> 0:01:14.240 of Japan and China, but they were later downgraded. 0:01:14.040 --> 0:01:17.120 Well, Nathan, Taiwan has great importance to the global economy. 0:01:17.160 --> 0:01:21.000 It is the dominant producer of the world's most advanced semiconductors. 0:01:21.000 --> 0:01:25.240 Bloomberg Intelligence Asia tech analyst Robert Lee continues our team 0:01:25.280 --> 0:01:26.560 coverage Taiwan is. 0:01:26.520 --> 0:01:29.000 The silicon valley of Asia. It's at the epicenter of 0:01:29.000 --> 0:01:32.560 global chip production, with TSMC being the center of that. 0:01:33.160 --> 0:01:35.520 So it's a very important place for the global tech 0:01:35.520 --> 0:01:39.360 food chain, particularly within semiconductors. But as I said, it 0:01:39.400 --> 0:01:43.040 would appear and just thinking through and understanding the geography 0:01:43.800 --> 0:01:48.320 and the protocols and preventative measures in place that realistically 0:01:48.480 --> 0:01:52.040 the damage to TSMC's production or plants is likely to 0:01:52.120 --> 0:01:54.120 be minimal at this point. 0:01:54.400 --> 0:01:58.520 Bloomberg Intelligence Asia Tech analyst Robert Lee says, Taiwan Semiconductor 0:01:58.600 --> 0:02:01.920 is a major supplier of to Apple and Nvidia. It 0:02:02.000 --> 0:02:06.200 halted some chip making and evacuated plants following the earthquake Careen. 0:02:06.240 --> 0:02:08.760 Another story we continue to follow is the fallout from 0:02:08.840 --> 0:02:12.280 Israel's killing of aid workers. President Biden has issued his 0:02:12.720 --> 0:02:17.400 strongest statement of criticism against Israel, yet Bloomberg Zed Baxter 0:02:17.560 --> 0:02:18.360 has that story. 0:02:18.800 --> 0:02:21.960 President Biden says Israel has not done enough to protect 0:02:22.000 --> 0:02:25.200 civilians in Gaza. This following the killing of seven World 0:02:25.320 --> 0:02:29.359 Central Kitchen workers providing aid to Palestinians. Secretary of State 0:02:29.400 --> 0:02:32.480 Anthony Blincoln says, the work they're doing there is extraordinary. 0:02:32.560 --> 0:02:37.560 Spoking directly to the Israeli government about this particular incident, 0:02:38.440 --> 0:02:44.880 we verged a swift, a thorough, an impartial investigation to 0:02:45.040 --> 0:02:47.360 understand exactly what happened, and. 0:02:47.280 --> 0:02:50.639 The President is now also pushing for an immediate cease 0:02:50.720 --> 0:02:55.120 fire as part of a hostage deal ed Baxter Bloomberg. 0:02:54.720 --> 0:02:57.760 Radio, all right and thank you. Meanwhile, President Biden had 0:02:57.760 --> 0:03:00.839 his first call with the Chinese president. Sheies ping since 0:03:00.840 --> 0:03:03.880 they were face to face encounter in San Francisco last November. 0:03:04.120 --> 0:03:07.120 We get more from Bloomberg's and a current in Washington. 0:03:07.320 --> 0:03:09.720 The call is about stabilizing relations, but that does not 0:03:09.840 --> 0:03:12.480 mean the competitive strategic age that has gone away, and 0:03:12.560 --> 0:03:17.280 of course the point being their export controls, investment controls, 0:03:17.639 --> 0:03:19.840 the race for a the US to get back in 0:03:19.880 --> 0:03:22.200 the game in terms of chip production and ev production 0:03:22.520 --> 0:03:26.000 and everything else. None of that is has been changed 0:03:26.120 --> 0:03:28.239 or will be changed by its phone call or any. 0:03:28.040 --> 0:03:31.440 Other and Bloomberg's and A current says the two leaders 0:03:31.480 --> 0:03:34.520 discuss efforts to force the sale of TikTok in the US. 0:03:34.800 --> 0:03:37.600 Now, Karin the latest on the run for the White House. 0:03:37.640 --> 0:03:40.960 President Biden and former President Donald Trump both added to 0:03:41.000 --> 0:03:44.200 their delegate counts last night. Four more states held primaries 0:03:44.200 --> 0:03:48.080 on Tuesday. The presumptive nominees easily won in New York, Connecticut, 0:03:48.160 --> 0:03:51.440 Rhode Island, and Wisconsin. Trump picked up seventy eight to 0:03:51.480 --> 0:03:54.240 eighty four percent of the Republican vote, while Biden took 0:03:54.280 --> 0:03:56.480 eighty three to ninety one and a half percent. On 0:03:56.520 --> 0:03:58.000 the Democratic side, Well. 0:03:58.040 --> 0:04:00.880 Nathan, the results maybe a foregone king, but they do 0:04:00.960 --> 0:04:05.040 provide some clues about enthusiasm among base voters. Republican Nicki 0:04:05.080 --> 0:04:08.280 Hayley won at least eleven percent support in all four states. 0:04:08.400 --> 0:04:11.040 In Connecticut and Rhode Island, at least eleven percent of 0:04:11.120 --> 0:04:15.200 Democrats voted uncommitted, and a Wisconsin, almost nine percent of 0:04:15.280 --> 0:04:20.000 Democrats voted uninstructed. Activists have been encouraging Democrats to vote 0:04:20.000 --> 0:04:22.640 against the President to protest his handling of the war 0:04:22.800 --> 0:04:23.320 in Gaza. 0:04:23.640 --> 0:04:26.000 Right, Well, let's turn to the economy, Karen. Investors are 0:04:26.000 --> 0:04:27.839 going to be looking for more clues on interest rates 0:04:27.920 --> 0:04:29.520 later today, when FED chair J. 0:04:29.800 --> 0:04:30.680 Powell speaks at. 0:04:30.640 --> 0:04:33.720 An economic forum at Stanford University. We get a preview 0:04:33.760 --> 0:04:35.400 from Bloomberg's Michael McKee. 0:04:35.480 --> 0:04:38.680 The FED chairman is the central banking version of E. F. Hutton. 0:04:38.800 --> 0:04:41.680 When he talks, people listen, and he's talking for a 0:04:41.720 --> 0:04:44.359 second time in a week, offering another look at his 0:04:44.480 --> 0:04:48.440 economic outlook. Last week, Powell helped turn market sentiment by 0:04:48.520 --> 0:04:51.720 arguing the FED is in no hurry to lower interest rates. 0:04:52.040 --> 0:04:55.680 Central bankers see unexpected strength in the US economy that 0:04:55.839 --> 0:04:59.200 might boost inflation. Powell is not going to change that 0:04:59.360 --> 0:05:02.440 view today, but investors will be listening for any nuances 0:05:02.760 --> 0:05:06.000 that might give them more clarity on the criteria for easing. 0:05:06.240 --> 0:05:08.640 If not the timing, Michael McKee, Bloomberg Radio. 0:05:08.680 --> 0:05:10.479 All right, Mike, thank you, and stay with Bloomberg for 0:05:10.520 --> 0:05:13.080 live coverage of J. Powell's remarks. We'll have it for 0:05:13.120 --> 0:05:16.520 you at noon Wall Street time on Bloomberg Radio and Television. 0:05:16.839 --> 0:05:19.919 Nathan ahead of Powell's speech, more FED officials are cautioning 0:05:20.080 --> 0:05:23.680 about beginning the rate cut cycle. Two officials, including San 0:05:23.720 --> 0:05:27.720 Francisco FED President Mary Daily, say still expect three rate 0:05:27.760 --> 0:05:30.200 cuts this year, but there's no rush to begin lowering 0:05:30.320 --> 0:05:31.200 borrowing costs. 0:05:31.640 --> 0:05:33.920 I think that is a very reasonable baseline. 0:05:33.960 --> 0:05:36.120 But I would like to say here that this is 0:05:36.160 --> 0:05:39.320 a projection. Right, three rate cuts is a projection, and 0:05:39.360 --> 0:05:42.640 a projection is not a promise. San Francisco FED President 0:05:42.680 --> 0:05:46.400 Mary Daily's sentiments were echoed by Cleveland FED President Lorettamester. 0:05:46.760 --> 0:05:49.280 We have some breaking news from the Fed Karen involving 0:05:49.520 --> 0:05:52.960 global climate risk rules for Wall Street banks, Bloomberg News 0:05:52.960 --> 0:05:56.279 has learned US regulators, led by the FED, have thwarted 0:05:56.320 --> 0:05:59.000 a push to make climate risk a focus of global 0:05:59.040 --> 0:06:02.640 financial rules. European central bankers have been advocating for the 0:06:02.640 --> 0:06:06.080 Basel Committee on Banking Supervision to agree on requiring lenders 0:06:06.080 --> 0:06:09.360 to disclose strategies for meeting green commitments, the sources, saying 0:06:09.400 --> 0:06:12.920 closed door meetings. US officials have cited their narrow mandate 0:06:13.160 --> 0:06:16.359 and concerns that the Basle Committee was overstepping its purpose. 0:06:16.800 --> 0:06:16.960 Well. 0:06:17.000 --> 0:06:20.680 In Company News, Nathan a costly months long proxy battle 0:06:20.720 --> 0:06:23.400 for control of Disney appears to be over and we 0:06:23.440 --> 0:06:25.960 get this story from Bloomberg's John Tucker, John. 0:06:25.839 --> 0:06:28.680 And Karen Walt. Disney has secured enough shareholder votes to 0:06:28.760 --> 0:06:32.640 fend off a challenge from Nelson Peltz's try And Fund Management. 0:06:33.120 --> 0:06:36.000 This was the latest test for CEO Bob Iger, who 0:06:36.040 --> 0:06:38.400 returned to the Helm in November of twenty twenty two. 0:06:38.800 --> 0:06:41.200 A Reuters reported as of last night, Disney had the 0:06:41.240 --> 0:06:44.000 votes to defeat Tryan's attempt to appoint Pelts and one 0:06:44.040 --> 0:06:47.159 of his allies to the board. Bloomberg earlier reported that 0:06:47.160 --> 0:06:50.920 Disney won the support of major investors like Vanguard, black 0:06:51.040 --> 0:06:53.800 Rock and t row Price. A. Try In had pushed 0:06:53.839 --> 0:06:56.839 for changes to management and strategy and an effort to 0:06:56.880 --> 0:07:00.520 improve what it saws years of poor performance. Held said 0:07:00.560 --> 0:07:04.000 receive the backing of an influential shareholder advisory firm and 0:07:04.080 --> 0:07:07.080 a group of business leaders. Even Elon Musk, who doesn't 0:07:07.120 --> 0:07:11.200 own Disney shares back Pelts. Disney spent millions of dollars 0:07:11.200 --> 0:07:14.640 on advertising to garner support for its position. John Tucker 0:07:14.640 --> 0:07:15.880 Bloomberg Radio. 0:07:15.800 --> 0:07:18.400 All right, John, thanks well. Disney shares our little change 0:07:18.400 --> 0:07:20.480 this morning. It is the best performing stock in the 0:07:20.560 --> 0:07:26.720 Dow this year up thirty six percent. And it's time 0:07:26.760 --> 0:07:28.360 now for a look at some of the other stories 0:07:28.360 --> 0:07:30.600 making news in New York and around the world. And 0:07:30.640 --> 0:07:33.520 for that we're joined by Bloomberg's Michael Barr. Michael, good Morning, 0:07:33.600 --> 0:07:34.520 Good Morning Karen. 0:07:34.560 --> 0:07:37.880 Today, a federal judge in Newark will hear oral arguments 0:07:37.880 --> 0:07:42.120 in New Jersey's lawsuit over New York's congestion pricing tolls. 0:07:42.480 --> 0:07:46.040 The new toll would charge most drivers fifteen dollars for 0:07:46.360 --> 0:07:50.040 passenger cars driving south of sixtieth Street to Manhattan. New 0:07:50.120 --> 0:07:53.560 Jersey is arguing the Federal Highway Administration and New York 0:07:53.960 --> 0:07:59.040 quote failed to adequately consider the environmental impact and ignore 0:07:59.080 --> 0:08:02.240 the significant find central burden being placed on New jerseyans 0:08:02.560 --> 0:08:06.720 and New Jersey transportation system. New Jersey Governor Phil Murphy, 0:08:06.720 --> 0:08:10.600 who is against congestion pricing, says, you are not eliminating pollution, 0:08:10.800 --> 0:08:14.400 you are just displacing it from Manhattan to New Jersey. However, 0:08:14.560 --> 0:08:17.200 New York City comptroll Or Brad Lander is a supporter 0:08:17.280 --> 0:08:21.280 of congestion pricing. Lander told Bloomberg he's sympathetic to small 0:08:21.320 --> 0:08:24.040 business owners who say this will be a netted expense, 0:08:24.160 --> 0:08:25.520 but You've just got. 0:08:25.320 --> 0:08:27.720 To think about the city as a all. Everyone will 0:08:27.760 --> 0:08:30.920 thrive better if customers can get to you faster, if 0:08:30.960 --> 0:08:34.679 the city itself can keep its mass transit strong, if 0:08:34.720 --> 0:08:38.680 congestion is reduced. You know, it's a fair process to 0:08:38.800 --> 0:08:41.640 consider exemption. So those people want more of them, I 0:08:41.760 --> 0:08:44.719 totally understand. But from the point of view of long 0:08:44.800 --> 0:08:46.680 term investment in the city, this makes sense. 0:08:47.040 --> 0:08:50.760 Congestion pricing is scheduled to start in June. In Baltimore, 0:08:50.800 --> 0:08:53.280 the Army Corps of Engineers is getting a closer look 0:08:53.320 --> 0:08:56.680 at the massive cargo ship that brought the Francis Scott 0:08:56.760 --> 0:09:01.040 Keybridge down and the damage caused. Army Corps Engineer's Brigadier 0:09:01.040 --> 0:09:04.480 General John Lloyd says divers are still working in low 0:09:04.600 --> 0:09:07.920 visibility and hazardous conditions on the bridge wreckage. 0:09:08.080 --> 0:09:12.480 The same complexity and challenges, even more so, are below 0:09:12.520 --> 0:09:15.440 the water as well, and I think that's what's going 0:09:15.520 --> 0:09:18.680 to make it such a challenge in removing this wreckage. 0:09:18.800 --> 0:09:21.400 It's not only what you see above the water, but 0:09:21.480 --> 0:09:22.800 below the water as well. 0:09:23.200 --> 0:09:25.560 Two channels have been opened near the site of the 0:09:25.600 --> 0:09:29.880 collapse bridge in Baltimore Harbor to make way for smaller vessels. 0:09:30.360 --> 0:09:34.640 The Justice Department special consul prosecuting former President Donald Trump 0:09:34.800 --> 0:09:39.360 for mishandling classified documents venett frustration with a judge overseeing 0:09:39.400 --> 0:09:43.120 the case. Special Consul Jack Smith says US District Judge 0:09:43.120 --> 0:09:47.320 Aleen Cannon's understanding of key legal issues appears to be 0:09:47.400 --> 0:09:51.280 fundamentally flawed. In a court filing late yesterday, Smith called 0:09:51.360 --> 0:09:54.920 on Cannon to clarify her intentions so he can decide 0:09:54.920 --> 0:09:58.000 whether to file an appealed can test her decisions. Cannon 0:09:58.120 --> 0:10:01.720 ordered Smith and Trump last month to draft instructions for 0:10:01.800 --> 0:10:03.960 the jury that we'll hear the case. The order is 0:10:04.000 --> 0:10:07.720 controversial because it directed Smith to assume that Trump may 0:10:07.720 --> 0:10:10.600 have had the right to declare the documents are personal 0:10:11.000 --> 0:10:14.080 rather than official. Global news twenty four hours a day 0:10:14.120 --> 0:10:16.640 and whenever you want it with the Bloomberg News Now. 0:10:16.760 --> 0:10:18.920 I'm Michael Barrn. This is Bloomberg, Karen. 0:10:19.040 --> 0:10:20.040 Sorry, Michael, thank you. 0:10:24.720 --> 0:10:27.920 Time now for the Bloomberg Sports Update with John stash Hour. 0:10:28.080 --> 0:10:29.440 John, Thanks Karen. 0:10:29.440 --> 0:10:31.680 The Yankees had to lose some time after starting five 0:10:31.720 --> 0:10:34.280 and oh, they managed just three hits, lost seven nothing 0:10:34.320 --> 0:10:37.160 of The Arizona d Backs scored three runs on five hits. 0:10:37.160 --> 0:10:40.160 In the first inning. Esther Cortez his second straight start 0:10:40.320 --> 0:10:42.360 where he's allowed three in the first day game. Today, 0:10:42.440 --> 0:10:44.719 Yanks have their home opener On Friday. Red Sox won 0:10:44.800 --> 0:10:47.600 five to four and eleven innings at Oakland. Giants lost 0:10:47.640 --> 0:10:49.520 to the Dodgers five to four. Mookie Betts w with 0:10:49.640 --> 0:10:52.439 already his fifth home run for LA. In Philadelphia, Bryce 0:10:52.480 --> 0:10:54.440 Hartford didn't have a hit this season, then had a 0:10:54.480 --> 0:10:56.480 big night against Cincinnati. 0:10:56.720 --> 0:10:59.480 Suitor cup set and a three to two pitch swinging 0:10:59.520 --> 0:10:59.920 a drive. 0:11:00.080 --> 0:11:02.239 Ye'll hit up the alley right center field. 0:11:02.040 --> 0:11:04.199 And it is gone a grand sound. 0:11:06.360 --> 0:11:09.840 Three for number three is Bryce Harper, with his third 0:11:10.080 --> 0:11:13.480 hole run of the night on WIP. Three homers six 0:11:13.600 --> 0:11:15.920 rbyis for Harper. The Phillies won nine to four. Mets 0:11:15.920 --> 0:11:17.640 and Tigers rained at at City Field to make it 0:11:17.679 --> 0:11:19.560 up with a day game tomorrow. They'll hope to get 0:11:19.600 --> 0:11:23.000 tonight's game in. In Miami, Knicks fellbhind by sixteen rally 0:11:23.040 --> 0:11:25.800 the tie, but the heat prevailed one oh nine ninety nine. 0:11:25.880 --> 0:11:28.640 The next third loss in a row, Dante DiVincenzo led 0:11:28.679 --> 0:11:30.559 them with thirty one. In Philly, the return of Joe 0:11:30.679 --> 0:11:32.679 lm beat out since January with a knee injury. He 0:11:32.720 --> 0:11:35.520 played twenty nine minutes, scored twenty four and a six 0:11:35.600 --> 0:11:38.880 ers win over Oklahoma City. The Warriors beat Dallas despite 0:11:38.960 --> 0:11:42.040 thirty points at a triple double for Luca Donson. Pittsburgh Penguins. 0:11:42.080 --> 0:11:44.600 After the win over the Rangers went to Jersey beat 0:11:44.600 --> 0:11:47.120 the Devils six to three. Islanders top Chicago two the one. 0:11:47.160 --> 0:11:50.240 The Bruins won three nothing at Nashville. The Capital's lost 0:11:50.280 --> 0:11:52.360 six to two in Buffalo. Seaton Hall had a case 0:11:52.360 --> 0:11:55.280 for making the NCAA Tournament. The Pirates had a win 0:11:55.360 --> 0:11:58.640 over Mighty Yukon. They settled for the NIIT and in 0:11:58.640 --> 0:12:01.760 Indianapolis they beat Georgia. They'll play Indiana State tomorrow for 0:12:01.800 --> 0:12:05.800 the championship. Ratings in for the Iowa LSU women's game, 0:12:05.920 --> 0:12:08.320 twelve point three million people watched. 0:12:08.400 --> 0:12:10.680 That's more than any recent World Series game. 0:12:11.000 --> 0:12:13.640 John Stashewer, Bloomberg Sports, Karen Nathan all. 0:12:13.600 --> 0:12:14.360 Right, John, thank you. 0:12:14.480 --> 0:12:16.680 SMP future is down at tenth of up percent, down 0:12:16.679 --> 0:12:20.040 futures little change, NASDAG futures down two tenths of up percent, 0:12:20.080 --> 0:12:23.120 and the ten year treasury yield four point three seven percent. 0:12:25.520 --> 0:12:29.680 Coast to coast on Bloomberg Radio nationwide on Sirius XM, 0:12:29.760 --> 0:12:32.679 and around the world on Bloomberg dot Com and the 0:12:32.679 --> 0:12:37.920 Bloomberg Business app. This is Bloomberg Daybreak. Good morning, I'm 0:12:38.000 --> 0:12:40.160 Nathan Hager. Let's get back to our top stories now. 0:12:40.200 --> 0:12:43.319 Taiwan is reeling from its strongest earthquake in a quarter century, 0:12:43.320 --> 0:12:46.559 and President Biden is delivering his harshest criticism yet against 0:12:46.600 --> 0:12:49.560 Israel following the Gaza attack that killed seven AID workers. 0:12:49.600 --> 0:12:53.120 With World Central Kitchen joining us for more is Rosalind Mathison, Europe, 0:12:53.120 --> 0:12:56.440 Middle East and African news director for Bloomberg News. Roz, 0:12:56.480 --> 0:12:58.560 thanks for being with us first catch us up on 0:12:58.600 --> 0:13:01.119 the latest from this Taiwan earthquake. 0:13:02.559 --> 0:13:02.960 Hi there. 0:13:03.000 --> 0:13:06.160 Well, yes, it was the biggest earthquake to hit Taiwan 0:13:06.320 --> 0:13:09.640 in twenty five years, and the footage obviously shows a 0:13:09.720 --> 0:13:13.520 pretty strong tembla affecting buildings and so on. There's been 0:13:13.600 --> 0:13:16.600 quite a lot of damage the buildings and the eastern 0:13:16.720 --> 0:13:19.800 side of Taiwan. We know at least four people have 0:13:20.000 --> 0:13:23.480 died in that. Luckily, Taiwan has buildings that are quite 0:13:23.559 --> 0:13:26.280 resistant to earthquakes, so even though there's a lot of 0:13:26.360 --> 0:13:29.640 damage to buildings, it does seem as though four people 0:13:29.720 --> 0:13:32.599 so far have been killed. But also key thing is 0:13:32.640 --> 0:13:35.680 the impact of the earthquake on the On the Islands 0:13:35.720 --> 0:13:38.960 tech sector, because the chip companies there really are the 0:13:39.000 --> 0:13:41.760 beating heart of the global supply chain when it comes 0:13:41.760 --> 0:13:45.559 to semiconductors, particularly the top shelf stuff, the really high end, 0:13:45.600 --> 0:13:50.080 precision made semiconductors. And we know that companies including PSMC, 0:13:51.080 --> 0:13:53.719 the main contract chip maker to companies like Apple, n 0:13:53.840 --> 0:13:56.240 Video and others, they've had to shut a lot of 0:13:56.240 --> 0:14:00.000 their production down. That's because they use very very delicate 0:14:00.080 --> 0:14:04.040 equipment that operates at certain vibrations, and obviously an earthquake 0:14:04.040 --> 0:14:07.320 can do significant damage to their machinery. And this is 0:14:07.360 --> 0:14:10.000 not stuff you can turn off and then turn back 0:14:10.040 --> 0:14:12.559 on again straight away. So even if their buildings are 0:14:12.559 --> 0:14:16.000 not damaged, they can't restart their equipment potentially for weeks. 0:14:16.040 --> 0:14:19.040 It has to idle before it can be brought back online. 0:14:19.080 --> 0:14:22.080 And so what we can expect is potentially some disruption 0:14:22.680 --> 0:14:25.640 to chip production and certainly to the supply chain, even 0:14:25.680 --> 0:14:28.680 if there's a lot of physical damage to these facilities. 0:14:28.760 --> 0:14:31.040 But right now we don't know for sure the extent 0:14:31.080 --> 0:14:32.040 of that, so. 0:14:32.040 --> 0:14:35.720 How much disruption could we expect roz if we see 0:14:35.720 --> 0:14:38.720 more aftershocks coming off the back of this seven point 0:14:38.760 --> 0:14:40.600 four that's a strong magnitude. 0:14:41.360 --> 0:14:43.920 Well, that's right, And either way, you know, we know 0:14:44.000 --> 0:14:46.080 that these sites are going to have to operate what's 0:14:46.080 --> 0:14:48.800 called a vacuum state for several weeks, So you have 0:14:48.880 --> 0:14:50.960 to turn this equipment off, you have to let it 0:14:51.040 --> 0:14:54.240 sit for several weeks, and then only then can you 0:14:54.280 --> 0:14:56.400 restart it. So either way, there's going to be a 0:14:56.440 --> 0:14:59.800 gap of some magnitude. And that's particularly again going to 0:15:00.320 --> 0:15:03.440 the high end area of the chip market where those 0:15:03.520 --> 0:15:06.520 chips might have been destroyed in the process, they might 0:15:06.560 --> 0:15:08.240 be spoiled, and then again there's going to be a 0:15:08.320 --> 0:15:11.360 lag to reproduce them. Of course, there is a backlog 0:15:11.520 --> 0:15:14.640 of chips that can be used, so you may not 0:15:14.640 --> 0:15:16.640 see an immediate effect on the supply chain. It might 0:15:16.680 --> 0:15:19.360 actually come in a matter of months down the line 0:15:20.240 --> 0:15:23.520 when those extra chips that are currently available run out. 0:15:23.600 --> 0:15:25.400 And that's what we really need to watch for, is 0:15:25.400 --> 0:15:28.560 the potential impact on the supply chain months from now. 0:15:28.600 --> 0:15:31.480 But it does show again just how reliant, you know, 0:15:31.520 --> 0:15:35.240 the global supply chain is on Taiwan and vulnerable to 0:15:35.320 --> 0:15:38.760 disruptions that come from there, and beyond this moment, this 0:15:38.880 --> 0:15:42.760 disaster that's affected Taiwan, there is an overatching question also 0:15:42.840 --> 0:15:46.440 of the tensions with China, and of course China has 0:15:46.440 --> 0:15:49.880 about to unify Taiwan. It sees Taiwan as part of 0:15:49.880 --> 0:15:53.400 its territory. Taiwan sees itself as the opposite. So there's 0:15:53.400 --> 0:15:56.120 the question there of further disruptions down the line. 0:15:56.320 --> 0:15:58.560 And of course we heard President Biden have that phone 0:15:58.600 --> 0:16:02.520 call with China's Hijen pinged try to stabilize that relationship. 0:16:02.560 --> 0:16:05.440 But in our last thirty seconds, Roz, we're doing some 0:16:05.520 --> 0:16:09.880 really harsh criticism from President Biden now against Israel following 0:16:10.000 --> 0:16:13.000 that strike in Gaza that killed World Central Kitchen workers. 0:16:14.000 --> 0:16:16.200 Well, that's right, some of the most strong language that 0:16:16.200 --> 0:16:19.440 we've seen from the US president and just really reflecting 0:16:19.440 --> 0:16:22.280 that growing sense of frustration on the part of the 0:16:22.400 --> 0:16:26.760 US and other countries about the humanitarian situation inside Gaza, 0:16:26.960 --> 0:16:30.280 and particularly what's been done to protect not just AID 0:16:30.280 --> 0:16:34.240 workers but also Palestine civilians who are inside Gaza. We 0:16:34.320 --> 0:16:37.240 know that tens of thousands of them have died as 0:16:37.320 --> 0:16:39.760 part of this conflict, and so really the question is 0:16:40.200 --> 0:16:44.640 what can they do to improve things on the ground. Also, 0:16:44.880 --> 0:16:46.920 you know what does it mean for the potential invasion 0:16:46.960 --> 0:16:47.640 of roughams? 0:16:47.680 --> 0:16:48.600 Out right? 0:16:48.680 --> 0:16:51.800 Okay, Rise Matheson. 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