# SpaceX's AI Splurge Puts a Damper on Debut Earnings

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 5 Aug 2026, 19 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/8d271358-7b3c-4d8e-bf15-b49d000e63a3/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. SpaceX stock fell after the company disclosed higher-than-expected spending on its artificial intelligence business, dampening an inaugural quarterly report that broadly surpassed Wall Street forecasts. Shares of Elon Musk's rocket, satellite and AI conglomerate tumbled as much as 8.8% in US postmarket trading after it said capital spending jumped to about $18.4 billion in the second quarter. "We expect the cadence of AI development to improve dramatically," Musk told analysts on a conference call after the company reported results that beat forecasts for revenue, AI losses and Starlink subscriber growth. Bloomberg's Haidi Stroud-Watts spoke to Bob O'Donnell, President and Chief Analyst at TECHnalysis Research. Plus - HSBC Holdings Plc announced a fresh stock buyback and raised its cost-cutting target as it reported second-quarter earnings that beat estimates despite China's crackdown on cross-border wealth flows. The London-headquartered lender will repurchase as much as $1 billion in stock after pretax profit for the three months through June rose to $10.1 billion, beating estimates. Results were bolstered by notable items alongside gains in banking and wealth revenue. Bloomberg's Francine Lacqua spoke to HSBC Group CEO Georges Elhedery. See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
[0:11] Speaker 2: Welcome to the Daybreak Asia podcast on Dan Schwartzman. Doug
[0:14] Speaker 2: Chrisner has the week off. We begin with earnings. SpaceX's
[0:17] Speaker 2: revenue exceeded Wall Street's estimates in the company's first quarterly
[0:21] Speaker 2: financial report following its blockbuster initial public offering back in June.
[0:25] Speaker 2: Elon Musk's space company reported revenue of seven point eight
[0:28] Speaker 2: billion dollars. That's greater than the six point eight one
[0:31] Speaker 2: billion analysts expected on average, but shares of SpaceX are
[0:35] Speaker 2: lower and late trading after the company announced over eighteen
[0:38] Speaker 2: billion dollars in spending on AI. That's where we begin
[0:41] Speaker 2: our conversation with Bob O'Donnell. Bob is president and chief
[0:44] Speaker 2: analyst at TECHnalysis Research. He spoke to Bloomberg's Heidi shroud Watts.
[0:48] Speaker 3: Investors probably shouldn't be concerned about the massive amount of
[0:51] Speaker 3: AI spend, given that this is how Alon characterizes.
[0:55] Speaker 4: This company well exactly.
[1:00] Speaker 5: And look, these kind of investments we're going to be
[1:02] Speaker 5: seeing from all the major model providers and all the
[1:06] Speaker 5: big AI companies over the next several years, frankly, and
[1:09] Speaker 5: people just need to know that that's going to happen.
[1:12] Speaker 5: You know, what's interesting about what SpaceX is doing is, frankly,
[1:16] Speaker 5: a lot of their infrastructure costs they're actually leasing out
[1:20] Speaker 5: to other people. So in some ways they're becoming as
[1:22] Speaker 5: much of a neo cloud company as they are an
[1:24] Speaker 5: AI company, because their revenues from the pure AI side
[1:29] Speaker 5: of selling their own models of grock han't has been
[1:32] Speaker 5: as big, of.
[1:32] Speaker 4: Course as we've seen from open ai and anthropics.
[1:35] Speaker 5: So and yet they've got all this capacity they built,
[1:37] Speaker 5: and right now it's compute capacity that's really in sharp demand. Now,
[1:42] Speaker 5: the question longer term, to be fair around SpaceX is, hey,
[1:45] Speaker 5: is that really the kind of business you want to
[1:48] Speaker 5: be in, because obviously they have a lot of other
[1:49] Speaker 5: things going on, and at what point will they need
[1:52] Speaker 5: to bring back some of that capacity to run their
[1:54] Speaker 5: own models. So there are a lot of questions there,
[1:56] Speaker 5: but yes, there's a lot of money being spent on
[1:58] Speaker 5: this sort of stuff right now.
[2:01] Speaker 3: There's a lot of existential questions in this space. Right
[2:03] Speaker 3: We've long been talking about the insatiable need for capacity.
[2:07] Speaker 3: There's now concerns about overcapacity, there's concerns about rising costs,
[2:11] Speaker 3: the numerous risks how long this is going to take
[2:14] Speaker 3: for these ambitions for Elonnas to take, you know, come
[2:17] Speaker 3: to fruition. Do you think the thesis is a little
[2:21] Speaker 3: less stable now than it was even just a few
[2:23] Speaker 3: months ago.
[2:26] Speaker 4: Well, I do think there are challenges you have to
[2:28] Speaker 4: be aware of.
[2:29] Speaker 5: The you know, all the money within SpaceX is coming
[2:32] Speaker 5: from Starlink, right, I mean that all the profit pardon me,
[2:35] Speaker 5: and right now Starlink pretty much has that world of
[2:39] Speaker 5: satellite based communications to itself.
[2:42] Speaker 4: However, we are going to see competition.
[2:44] Speaker 5: Amazon has already talked about their Kuyper satellites. Likely there
[2:48] Speaker 5: will be some other companies as well, So that's going
[2:51] Speaker 5: to be an issue. And you know, the US carriers
[2:53] Speaker 5: are not going to take this potential challenge to them
[2:56] Speaker 5: that you guys were just talking about sitting down. They're
[2:58] Speaker 5: clearly focused on trying to address this. And the important
[3:02] Speaker 5: thing to remember about satellite based services is the vast
[3:06] Speaker 5: majority of satellites come or excuse me, of cell service
[3:09] Speaker 5: comes from land based networks. The satellites are sort of
[3:13] Speaker 5: the gravy on top. So Musk is coming at it
[3:16] Speaker 5: from a different way, which is, hey, we have all
[3:17] Speaker 5: this great stuff in the areas where there's not a
[3:19] Speaker 5: lot of people. But in the main areas where people
[3:21] Speaker 5: live and work all the time, that satellite service doesn't
[3:24] Speaker 5: really work as well. So it's extraordinarily expensive to build
[3:28] Speaker 5: out those networks.
[3:29] Speaker 4: So that's going to be an interesting challenge.
[3:30] Speaker 5: So I do think there are a number of interesting
[3:33] Speaker 5: concerns that aren't really being thought through a lot when
[3:35] Speaker 5: it comes to SpaceX, and there's a lot more kind
[3:37] Speaker 5: of oh, this is a great vision.
[3:39] Speaker 4: Let's buying into the vision kind of thing. But it's
[3:41] Speaker 4: a long way off.
[3:44] Speaker 3: Yeah, it's a vision that you know, I think, if
[3:46] Speaker 3: you take a step back, is largely unproven too, right,
[3:49] Speaker 3: the idea of having data centers in space, how how
[3:52] Speaker 3: that's going to be powered, and how the data is
[3:54] Speaker 3: going to be transmitted to But I also do wonder
[3:58] Speaker 3: what sort of I guess consolidation you expecting from this
[4:02] Speaker 3: broader group of companies. We've heard some of the rumors
[4:04] Speaker 3: that have been refuted regarding their China businesses on Tesla.
[4:08] Speaker 3: Do you expect a bit more of a coming together
[4:11] Speaker 3: and perhaps shedding of non core business interests.
[4:17] Speaker 5: You know, look, when it comes to Musk and his plans,
[4:19] Speaker 5: any of those things are possible, let's be honest. Yeah,
[4:22] Speaker 5: I mean he could end up pulling all the pieces
[4:24] Speaker 5: that he wants together, all the ones that are making money,
[4:26] Speaker 5: and then getting rid of.
[4:27] Speaker 4: The ones he doesn't see as having opportunities.
[4:29] Speaker 5: Longer term, it does become a question of, you know,
[4:32] Speaker 5: a conglomerate of things that you try to build a
[4:35] Speaker 5: story around but ultimately don't make that much sense. I mean,
[4:38] Speaker 5: already there are a lot of people who are saying
[4:40] Speaker 5: that about SpaceX because data centers in space, there are
[4:43] Speaker 5: enormous technical challenges to make that happen. Let's not forget
[4:46] Speaker 5: someone has to fix these things occasionally. You can't do
[4:48] Speaker 5: that if they're in space. I mean, there's just so
[4:50] Speaker 5: many issues there. So you know, I wouldn't be surprised
[4:54] Speaker 5: to see a lot of these things. The problem is
[4:56] Speaker 5: they're just not predictable. You know, He's not a predictable personality,
[4:59] Speaker 5: so just hard to bet on that and hard to
[5:02] Speaker 5: know exactly what's going to happen. Some people buy into
[5:05] Speaker 5: the Musk vision and some people don't, and that becomes
[5:07] Speaker 5: ultimately the guiding factor when people are thinking about this.
[5:12] Speaker 3: Yeah, his fans would say that the lack of predictability
[5:15] Speaker 3: is just part of the genius right well in times
[5:17] Speaker 3: of the broader landscape, and obviously we've seen a lot
[5:20] Speaker 3: of rotation and a lot of volatility in the AI
[5:23] Speaker 3: space over the past few weeks, even into the last
[5:25] Speaker 3: few days, but a big part of this has been
[5:28] Speaker 3: the gains made by China, right And I'm just going
[5:30] Speaker 3: to throw up a quick sort of capture of what
[5:33] Speaker 3: we're seeing the different models and the different types of
[5:38] Speaker 3: ability that we're seeing from each of the different models,
[5:41] Speaker 3: And a lot of these Chinese models are quite clearly
[5:44] Speaker 3: closing the gap when it comes to cost efficiency, the economics,
[5:47] Speaker 3: but also the broader efficiency of getting things done as well.
[5:51] Speaker 3: Is this kind of the disruptive force that is should
[5:55] Speaker 3: be most worrisome to the US players at the moment?
[6:01] Speaker 4: Well, look, I do think it's a big issue.
[6:03] Speaker 5: I happen to be in Beijing this week visiting with
[6:06] Speaker 5: Lenovo and hearing a lot more about some of these
[6:08] Speaker 5: Chinese open models and the things that they're doing, and
[6:12] Speaker 5: the opportunity to have some of these models run locally
[6:15] Speaker 5: within companies to reduce the costs because right now, of course,
[6:20] Speaker 5: companies are spending hundreds of millions of dollars on tokens
[6:24] Speaker 5: into the cloud or chat GPT or clawed from Anthropic
[6:28] Speaker 5: and all these other companies. These open source models dramatically
[6:31] Speaker 5: change that. Now there are challenges here in China because
[6:34] Speaker 5: they're not really making any money, they're not charging it, and.
[6:36] Speaker 4: Eventually they're going to have to do that.
[6:38] Speaker 5: So there's a lot of question marks out there, but
[6:40] Speaker 5: there's no question I believe that open source models is
[6:43] Speaker 5: open weight models pardon me, are really going to have.
[6:46] Speaker 4: A dramatic impact. I don't think that means frontier models
[6:49] Speaker 4: go away.
[6:49] Speaker 5: I just think we can see an interesting mixture of
[6:52] Speaker 5: things and that's going to have a lot of impacts overall. Fundamentally,
[6:56] Speaker 5: companies do need AI compute if they're going to need
[6:59] Speaker 5: some in the C I think you're going to see
[7:01] Speaker 5: them use more in the data center.
[7:03] Speaker 4: AMD earnings that they just came out and they were.
[7:06] Speaker 5: Talking about Helios, which is coming to bring more data
[7:09] Speaker 5: center capabilities to some organizations, and then on client devices,
[7:14] Speaker 5: on PCs, on smartphones, and so we're going to see
[7:17] Speaker 5: this hybrid AI mixture of all of these different elements.
[7:20] Speaker 5: And how exactly those play out is still something that
[7:24] Speaker 5: we're all watching closely, and frankly, it's changing on a
[7:27] Speaker 5: monthly basis, in part.
[7:28] Speaker 4: Because of all the evolution of these big bombs.
[7:31] Speaker 2: That was Bob O'Donnell, president and chief analysts at TECHnalysis Research,
[7:34] Speaker 2: speaking of Bloomberg's Heidi shroud Watts, and we're bringing their
[7:37] Speaker 2: conversation to you here on the Daybreak Asia podcast. Welcome
[7:48] Speaker 2: back to the Daybreak Asia Podcast. I'm Dan Schwartzman. Doug
[7:51] Speaker 2: Chrisner has the week off. HSPC announced a fresh dot
[7:54] Speaker 2: buy back and raised its cost cutting target. This comes
[7:58] Speaker 2: after the lender reported second quarter earning that beat estimates
[8:01] Speaker 2: despite China's crackdown on cross border wealth flows. And we
[8:04] Speaker 2: had the chance to catch up with HSBC Group CEO
[8:07] Speaker 2: Georgia zel Henery. He spoke to Bloomberg's Francine Lacroix.
[8:10] Speaker 6: Look, one billion dollars in buyback is actually sooner, much
[8:13] Speaker 6: sooner than expected.
[8:15] Speaker 7: What does this say about the strength of HSBC right now?
[8:18] Speaker 8: Well, I think, I mean the results as a whole
[8:21] Speaker 8: are demonstrating that we are becoming the stronger bank that
[8:24] Speaker 8: we set out to build. We're very pleased with what
[8:26] Speaker 8: we announced this morning. We're growing across all our indicators.
[8:31] Speaker 8: Our revenue growing, our law E loans and deposits are growing,
[8:34] Speaker 8: our income is growing. We generated returns of nineteen and
[8:37] Speaker 8: a half percent on tangible equity, so this is, you know,
[8:41] Speaker 8: this is a good demonstration of a strong business momentum.
[8:46] Speaker 8: We're also very pleased with the progress we're making on
[8:48] Speaker 8: the strategy, which we're executing with precision, with discipline and
[8:53] Speaker 8: at pace. And we've upgraded some of our strategic deliverables,
[8:57] Speaker 8: including simplification related saves, and just announced three more non
[9:01] Speaker 8: strategic exits over the last ten days. That's fifteen exits
[9:05] Speaker 8: since twenty twenty five. And all of this is giving
[9:08] Speaker 8: us capacity to invest, capacity to accelerate our investment. And finally,
[9:14] Speaker 8: let me say we're we're you know, we're very confident
[9:17] Speaker 8: in the potential of this bank. We're very confident our
[9:20] Speaker 8: ability to unlock it. We are now a leader in
[9:23] Speaker 8: a number of areas where we're operating with, you know,
[9:26] Speaker 8: the Asian leader in wealth management, the world Straight bank,
[9:32] Speaker 8: and we have structural growth opportunities along our footprint, I
[9:35] Speaker 8: mean Asian wealth, Asia by Asia, the UK growth opportunities.
[9:39] Speaker 8: So we're pleased to put more of our strength and
[9:42] Speaker 8: the service for our clients.
[9:43] Speaker 6: I mean it's impressive because when you privatize hanks And
[9:45] Speaker 6: last year you said look in terms of buybacks will
[9:47] Speaker 6: probably take a couple of quarters. So what does this
[9:50] Speaker 6: big buy bank actually tell us about the return generation
[9:53] Speaker 6: capability of the bank post hanks And Yeah, so.
[9:57] Speaker 8: We're pleased to have resumed buy back the squat three
[10:00] Speaker 8: quarters after we announced Hanksang. We said at that time
[10:04] Speaker 8: that our priority would be to rebuild capital postal privatization.
[10:07] Speaker 8: We estimated three quarters to be about the time to
[10:10] Speaker 8: build that three quarters on were able to return excess
[10:13] Speaker 8: capital to shareholders. Remember, our priority use of capital first
[10:18] Speaker 8: is the dividend payoutratio. Second is supporting the organic growth
[10:22] Speaker 8: of the business. Organic growth with an outs capitite at
[10:26] Speaker 8: the right returns within our strategic priorities. And we're very
[10:29] Speaker 8: pleased our loan books have grown. I mean, UK has
[10:32] Speaker 8: seen consistent growth and we've been able to lean in.
[10:37] Speaker 8: We're very pleased to see Hong Kong finally resume to
[10:41] Speaker 8: loan growth. So those will be the priority. Of course,
[10:44] Speaker 8: excess capital priority distribution mechanism has share buybacks. Hence the
[10:48] Speaker 8: one billion.
[10:49] Speaker 6: Your head of Corporate Investment Bank said you could actually
[10:52] Speaker 6: become a three hundred billion capitalation bank shortly. I mean
[10:59] Speaker 6: your I think by twenty thirty is what he said.
[11:01] Speaker 6: You're thirty billion away from that. Do you think you
[11:03] Speaker 6: can become three hundred billion in terms of size and
[11:06] Speaker 6: like six to twelve months?
[11:08] Speaker 8: Well, look, I mean we're certainly very pleased with the
[11:10] Speaker 8: share price reaction to the delivery of our strategy, where
[11:15] Speaker 8: this will go as a metaph our shareholders to judge.
[11:17] Speaker 8: What I'm really focused on is delivering for the business,
[11:20] Speaker 8: focused on all the growth opportunities that we're driving for
[11:23] Speaker 8: the business, delivering the strategy and the simplification at pace.
[11:29] Speaker 8: And you know, the upgrades we have shown in our
[11:31] Speaker 8: capability to do so and the speed at which we
[11:34] Speaker 8: are able to do it safely are our good testament
[11:38] Speaker 8: of the capacity we're creating to invest even further in
[11:41] Speaker 8: the business.
[11:42] Speaker 6: Sure, you've also said that Hong Kong would overtake Switzerland
[11:45] Speaker 6: as the world's largest cross border well center by the
[11:47] Speaker 6: end of the decade. Actually it's done so already. What
[11:50] Speaker 6: does that mean for wealth creation in Asia and your
[11:53] Speaker 6: story in it?
[11:55] Speaker 8: Well, yeah, I'm very pleased to see you know, Hong
[11:57] Speaker 8: Kong again becoming this wordly there for cross border web management.
[12:02] Speaker 8: I mean, Hong Kong is a home market for us.
[12:04] Speaker 8: We are the leader in web management across Asia. We've
[12:08] Speaker 8: grown our web parents is in Hong Kong by ten percent.
[12:10] Speaker 8: We're at half a trillion dollars wethan. We continue adding
[12:14] Speaker 8: clients in Hong Kong, six hundred and forty thousand new
[12:16] Speaker 8: clients across our two brands, the two iconic brands we
[12:19] Speaker 8: hold in Hong Kong, HSBC and Angsng Bank. So we're
[12:23] Speaker 8: very pleased with the momentum that Hong Kong and the
[12:26] Speaker 8: sophistication that the Hong Kong as a platform is creating
[12:30] Speaker 8: to be the you know, the cross boarder leader in
[12:33] Speaker 8: the world. Remember also Hong Kong is a technology hup.
[12:35] Speaker 8: We're seeing a lot of investment in Hong Kong in Ai.
[12:39] Speaker 8: We will be launching very soon the next couple of
[12:41] Speaker 8: months stable coin in Hong Kong, you know, as you know,
[12:45] Speaker 8: as the you know, they're leading center for bank issued
[12:49] Speaker 8: stable coins within a very good regulatory framework. So it's
[12:54] Speaker 8: all good developments given our presence in Hong Kong.
[12:57] Speaker 7: For Hanksang, how many more synergies are you expecting to
[13:00] Speaker 7: come from that?
[13:01] Speaker 8: Yeah, I mean, Hank sanng synergies. You know, we were
[13:04] Speaker 8: executing in more than eighty percent of all the synergy workstream.
[13:07] Speaker 8: So this is going on as per plan. We've already
[13:10] Speaker 8: announced leadership across most of the infrastructure areas, the back
[13:14] Speaker 8: office areas, the technology areas, the manufacturing areas. This will
[13:19] Speaker 8: allow us to create the alignment and the synergies that
[13:23] Speaker 8: you want to achieve. I'll give you one example, very
[13:25] Speaker 8: telling example in Q two Hank saying, as of May
[13:29] Speaker 8: started to use some of the digital onboarding capabilities customer
[13:33] Speaker 8: acquisition capabilities that HSBC built. They were able in Q
[13:37] Speaker 8: two to double the number of clients they onboarded, sixty
[13:40] Speaker 8: thousand clients on board in Q two compared to thirty
[13:42] Speaker 8: thousand Q one. Immediate visible benefit of those synergies.
[13:46] Speaker 7: Sure, as we have a new prime minister here in
[13:48] Speaker 7: the UK. If you think a possible UK tax on
[13:51] Speaker 7: banks is a possibility.
[13:53] Speaker 8: Look, that's a matter for the government. What we're really
[13:56] Speaker 8: focused on is supporting the government and the government's intention
[14:00] Speaker 8: to support growth in the UK. Now, if you only
[14:03] Speaker 8: achieved growth in the UK, you need businesses that are investing.
[14:07] Speaker 8: You need confidence. For businesses to invest, they need to
[14:10] Speaker 8: be able to access financing. For them to be able
[14:13] Speaker 8: to access financing, they need a strong, well capitalized banking
[14:18] Speaker 8: sector to support them. So our role UK is extremely
[14:23] Speaker 8: important for hspecies or home market. Our role is to
[14:26] Speaker 8: support all businesses across the UK. We support more than
[14:31] Speaker 8: We support around seven hundred thousand SMEs in the UK
[14:35] Speaker 8: across the UK, and we've grown our lending to them
[14:39] Speaker 8: twelve percent. We've grown our lending to all businesses in
[14:42] Speaker 8: the UK about ten percent, or ten billion US dollars.
[14:45] Speaker 8: We already pledged another five billion pounds of investments to
[14:49] Speaker 8: support SMEs in the UK. All of that is what
[14:53] Speaker 8: is supporting or hopefully supporting that growth that we wish
[14:57] Speaker 8: for the UK.
[14:58] Speaker 7: Can you tell me a little bit about so.
[15:00] Speaker 6: Bill Winters of Standard Charger last week said that they
[15:02] Speaker 6: were using a combination of Chinese and US AI models.
[15:06] Speaker 7: What are you using.
[15:07] Speaker 4: We're using a broad range of AI models.
[15:09] Speaker 8: We're investing in a broad range, We're partnering with a
[15:12] Speaker 8: broad range of AI partners, investing in the broad range
[15:15] Speaker 8: of A models. But we're doing so thoughtfully and strategically.
[15:19] Speaker 8: We're deploying AI responsibly and safely, and we have now
[15:24] Speaker 8: multiple hundred use cases either in production or in pilot stage,
[15:28] Speaker 8: and we're seeing real benefits I mean encoding. We're seeing
[15:32] Speaker 8: in areas productivity up to three hundred to four hundred
[15:35] Speaker 8: percent higher in hyper personalization of service to clients, we're
[15:40] Speaker 8: achieving great benefits. Now more than two thousand of our
[15:45] Speaker 8: wealth relationship managers have access to AI tools that help
[15:49] Speaker 8: them high per personalized advice to clients. And we've rolled
[15:52] Speaker 8: out productivity tools and productivity capabilities to more than two
[15:56] Speaker 8: hundred thousand of our colleagues, helping them in their day
[15:59] Speaker 8: to day need.
[16:00] Speaker 6: Our staff worried actually about you know, redundancies, about being
[16:04] Speaker 6: able to apply these models and how do you handle that?
[16:07] Speaker 8: And the important thing for us is make available to
[16:11] Speaker 8: all our colleagues both productivity tools but also training materials
[16:15] Speaker 8: and knowledge management materials so they all individually can become
[16:20] Speaker 8: more productive and more impactful in the way they do
[16:23] Speaker 8: business for our clients. Everybody wants productive stuff, so I'll
[16:28] Speaker 8: be extremely happy if all our colleagues can become those
[16:31] Speaker 8: productive versions of those more performing versions, you know, future
[16:35] Speaker 8: ready versions, of themselves because of all the tools and
[16:38] Speaker 8: the capabilities we're putting in front of them. And frankly,
[16:42] Speaker 8: if we generate this productivity as a bank, I would
[16:44] Speaker 8: reinvest it in those colleagues who help us accelerate our strategy.
[16:48] Speaker 6: Talk to me a little bit about digital tokens. Do
[16:51] Speaker 6: you have to cap because there's still AI implementation is expensive?
[16:55] Speaker 6: So are you letting people experiment at the moment and
[16:57] Speaker 6: then cap.
[16:58] Speaker 7: It at some point or do you cap from the Yeah.
[17:01] Speaker 8: So, as I said, we're investing in AI very actively,
[17:04] Speaker 8: but we're doing so thoughtfully and strategically. I am tracking
[17:08] Speaker 8: license fees and toalken costs. It is important for many
[17:13] Speaker 8: of the flagship initiatives that we see the benefits and
[17:16] Speaker 8: understand what the benefits are. Give you an example onboarding
[17:20] Speaker 8: for clients. For wholesale clients, we've already rolled AI capabilities
[17:25] Speaker 8: in the space and achieved fifty percent productivity gains and
[17:28] Speaker 8: actually fifty percent speed in delivering the service. So a
[17:33] Speaker 8: clear example of benefits realized. For many of the other initiatives,
[17:38] Speaker 8: we track benefits. For some of them, the benefits may
[17:40] Speaker 8: bee non financial benefits could be improved, productivity improved, quality
[17:45] Speaker 8: of service or the benefits could be, you know, being
[17:49] Speaker 8: able to access a wider range of clients for wider
[17:52] Speaker 8: range of services.
[17:54] Speaker 2: That was HSBC Group CEO Georgies l Henry speaking of
[17:57] Speaker 2: Bloomberg's Francine Lacroix, and we're bringing their conversation to you
[18:00] Speaker 2: here on the Daybreak Asia Podcast.
[18:05] Speaker 1: Thanks for listening to today's episode of the Bloomberg Daybreak
[18:08] Speaker 1: Asia Edition podcast. Each weekday, we look at the story
[18:12] Speaker 1: shaping markets, finance, and geopolitics in the Asia Pacific.
[18:16] Speaker 2: You can find us on Apple, Spotify, the Bloomberg Podcast
[18:19] Speaker 2: YouTube channel, or anywhere else you listen.
[18:22] Speaker 1: Join us again tomorrow for insight on the market moves
[18:25] Speaker 1: from Hong Kong to Singapore and Australia.
[18:28] Speaker 7: I'm Doug Prisner, and this is Bloomberg

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