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- [00:01]
A
So many organizations choose Outsystems because it's an outstanding way to quickly deploy apps and AI agents and deliver results. A top US bank deployed apps for their customers to easily open new accounts on any device. We helped a leading global insurer quickly deliver a portal and app for their employees, while a global brewer developed an app to automate tasks to clear bottlenecks. OutSystems, the number one AI powered low code platform.
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Semiconductor stocks tumble as fears over AI valuations come roaring back. Plus Wall street opts out of a $20 billion US bailout for Argentina There.
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C
Is a geopolitical reason for why Trump wants to help Argentina, but Wall street wants its money back. And so I think that's where these plans have fallen apart.
- [00:57]
B
And China pre people and the world for a new pressure campaign on Taiwan. It's Friday, November 21st. I'm Kate Bullivant for the Wall Street Journal and here is the AM Edition of what's news, the top headlines and business stories moving your world. Today, we're exclusively reporting that a planned $20 billion bailout from US banks to Argentina has been shelved as JP Morgan Chase, bank of America and Citigroup pivot to a loan package instead. Markets reporter Chelsea Delaney has been covering the US Bailout of Argentina and says instead, banks are proposing a short term $5 billion loan package to help cover a debt repayment in January.
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C
So the real sticking point in these negotiations has always been security for the banks lending this money to Argentina. $20 billion is a lot of money and Argentina is a serial defaulter. It's defaulted nine times on its sovereign debt. So there is a legitimate risk that Argentina will not be able to pay back this debt. So the banks going into this, they wanted either Argentina to give them collateral that they could use if it's not able to pay back the debt, or the U.S. treasury Department to guarantee it. That seems to be where these negotiations have fallen apart.
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B
Parts of the bailout are still going ahead, but as Chelsea explains, there's a mismatch between what the Trump administration wants and what Wall street is willing to.
- [02:29]
C
The US in a separate agreement has this $20 billion currency swap agreement with Argentina. And Javier Milei and Trump have this bromance. They agree on a lot of economic principles. And so there is sort of a diplomatic, a geopolitical reason for why, you know, Trump wants to help Argentina. But Wall street clearly does have some concerns about making a really big push into lending money to Argentina.
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B
Meanwhile, semiconductor stocks have tumbled in Asia on renewed fears of an artificial intelligence bubble tracking declines in US Chip stocks. Overnight shares in Samsung and SK Hynix, the world's two largest memory chip makers, slumped as much as 6 and 10%, respectively. Kimberly Kao covers Asian markets for Dow Jones Newswires.
- [03:20]
D
What we are seeing over actually the past two days is that Asian markets are getting whipsawed between the cautious and optimism around AI demand. For markets like South Korea and Taiwan, where there's Nvidia suppliers, those semiconductors actually dominate the benchmark weights, which also explains why those markets get caught between these swings. But today, investors are again becoming increasingly nervous about the risk of an AI bubble, which is what's causing market volatility not just this week but also in recent weeks. For example, in bank of America's latest monthly survey, it showed that an AI bubble was cited as one of the top risks by about 45% of institutional investors.
- [04:11]
B
For more on this, we've got a special bonus episode coming later today. In the latest what's news in Earnings. We'll take a look at how chip makers are raking it in and why markets can't decide if fears of an AI bubble are real or overblown. That'll be in the feed around midday and we'll have the PM Watts news after that. As usual. The Transportation Department has announced that the 776 air traffic controllers with perfect attendance during the government shutdown will receive a $10,000 bonus. And at least 400 other technicians and workers in the union are also on track to rece bonuses, according to the professional aviation safety specialists. At the same time, Transportation Secretary Sean Duffy told Fox News that some federal aviation employees could be penalised for not coming into work. The head of the union, Nick Daniels, said earlier this week that controllers weren't missing work out of protest, but because they were unable to pay for childcare. The FAA didn't comment on whether air traffic controllers who called in fatigued would be eligible for the bonus. And Paramount, Comcast and Netflix have submitted non binding bids to acquire Warner Bros. Discovery. Paramount is seeking to buy the entire company, including cable networks like cnn, while Comcast and Netflix are only bidding for the studios and streaming assets. Warner Bros. Is also moving forward with plans to separate its assets and any potential deal is expected to face significant regulatory scrutiny. Coming up, China is ramping up a new pressure campaign on Taiwan. We look at how Beijing is using its so called pen and gun strategy after the break.
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E
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B
China is preparing its people and the world for a new pressure campaign on Taiwan. The world's second largest economy is intensifying its so called pen and gun strategy for the island chain, which our chief China correspondent Ling Ling Wei expressed explains is part domestic media campaign and part aggressive rhetoric toward Taiwan's friends. Ling Ling is with us now. Can you tell us about China's strategy when it comes to Taiwan? What do they mean by pen and gun?
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F
The pen and gun strategy is this classic Maoist strategy for simultaneously waging a domestic psychological warfare. The pen and demonstrating aggressive external resolve. The gun. The pen refers to China's total control over media and culture to shape domestic public opinion and frame unification as a heroic cause. And the Gong refers to military signaling and diplomatic coercion aimed at Taiwan's supporters.
- [07:49]
B
So does this mean that a Chinese military strike against Taiwan is imminent?
- [07:55]
F
No, our reporting shows that there is very little sign of an imminent military strike. Instead, what we're reporting based on our sources is that what China is pursuing is so called Plan A, which is basically a high pressure gray zone campaign designed to coerce Taiwan into capitulation without firing a shot. It's about basically settling a new baseline normal, preparing domestic audiences and shaping the psychological battle space long before a military move, which would be Plan B if Plan A fails.
- [08:40]
B
Interesting. So why are we seeing this increased push from China against Taiwan now? What's changed?
- [08:49]
F
So the ultimate goal from China right now is to make Taiwan's position so unbearable economically, diplomatically and psychologically that Taipei sees negotiating with Beijing as the only viable option by aggressively lashing out at key supporters like Japan. Like the public threat to Japan's Prime Minister, Beijing basically is seeking to neutralize one's friends and isolate the island internationally. The timing is because China is feeling like the chances of winning the hearts and minds of the Taiwanese people are really diminishing and they fear that this very distinctive Taiwan identity is solidifying. So they have to try to move now and move fast.
- [09:50]
B
And Lin Ling, where does the US stand on all this?
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F
What we have heard from our sources in China is that Beijing definitely sees a strategic opening right now because what they consider wavering signals from the Trump administration's commitment to support Taiwan. Recently, we have seen the administration delayed military aid and being very quiet about whether or not the US Would intervene in the event of a Chinese invasion of Taiwan. That has fueled anxiety in Taipei over whether or not American support will be sacrificed for economic deal with China. So the US Shift, characterized by some officials as pragmatic deterrence, is forcing Taipei to take greater responsibility for funding its own defense capabilities. So the overall impact is such that we're seeing this continuous pressure campaign from China is aiming to lower the threshold for direct conflict by making economic coercion and political interference seem like the new accepted norm.
- [11:14]
B
That was the Journal's chief China correspondent, Ling Ling Wei Ling Ling, thanks so much for your time.
- [11:19]
F
Thank you for having me.
- [11:25]
B
And finally a week out from Black Friday. Deals and countdowns are already dominating retailers homepages. But another frenzy is underway too, in anticipation of Thanksgiving dinner and the growing post meal ritual known as the Cousins Walk. So if you find that after that last slice of pie, certain family members declare a need for a walk and return to the table minutes later, finding the conversation notably more amusing, they may in fact have been getting stoned. The so called Cousins Walk tradition has seemingly spurred sales of marijuana, with dispensaries now reporting Green Wednesday as their second biggest sales day of the year, rivalled only by the annual Cannabis celebration of 420 on April 20th. And that's it for what's news for this Friday morning. Today's show was produced by Daniel Bark and Hattie Moyer. Our supervising producer was Sandra Kilhoff. And I'm Kate Bullivant for the Wall Street Journal. We'll be back tonight with a new show. Until then, have a great weekend and thanks for listening.
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G
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