Apple Seeks Chinese-Made Chips, Tech Selloff Extends Into Asia | Daybreak Europe 7/2/2026

Summary

Bloomberg Daybreak Europe covers the global semiconductor selloff extending into Asia, with the KOSPI dropping over 5% on AI overbuild fears from Meta's cloud plans and Apple's China chip talks. The show highlights a rotation into Japanese and Korean financials and internet stocks, Fed hike risks for emerging markets, fading European defense rally, and selective energy bets avoiding Shell and BP. Oil eases further as Hormuz flows increase.

• Global tech selloff extends into Asia with KOSPI falling over 5% on AI overbuild concerns.
• Meta's plan to sell AI cloud computing and Apple's Chinese chip talks raise fears of oversupply and capex overcommitment.
• Rotation trade emerges: investors shift from crowded AI into Japanese and Korean financials and beaten-down internet names.
• Fed chair Kevin Warsh acknowledges price risks have eased, but traders price in at least one rate hike this year, pressuring EM assets.
• European defense IPO delay signals waning investor confidence in the sector's re-rating.
• European energy investors grow selective, avoiding Shell and BP in favor of service names with strong order books.
• Oil prices ease further as Strait of Hormuz flows reach 10 million barrels per day.