1 00:00:02,759 --> 00:00:05,200 Speaker 1: This is Bloomberg day Break Weekend, our global look at 2 00:00:05,200 --> 00:00:07,600 Speaker 1: the top stories in the coming week from our Daybreak 3 00:00:07,600 --> 00:00:10,280 Speaker 1: anchors all around the world. Straight Ahead on the program, 4 00:00:10,400 --> 00:00:13,079 Speaker 1: a look at more economic data in the US that 5 00:00:13,280 --> 00:00:17,079 Speaker 1: may impact FED policy moving forward. I'm Tom Busby in 6 00:00:17,160 --> 00:00:19,080 Speaker 1: New York. I'm Stephen Carolyn London. 7 00:00:19,120 --> 00:00:21,680 Speaker 2: But we're thinking about the future of healthcare as we 8 00:00:21,680 --> 00:00:25,680 Speaker 2: look ahead to the dowey Ho's World Health Assembly in Geneva. 9 00:00:25,720 --> 00:00:29,640 Speaker 3: I'm dek Prisner looking ahead to the trilateral meeting between Japan, 10 00:00:29,880 --> 00:00:33,479 Speaker 3: South Korea and China. 11 00:00:35,479 --> 00:00:39,480 Speaker 4: That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 12 00:00:39,479 --> 00:00:43,320 Speaker 4: eleve on three Own New York, Bloombergen ninety nine to one, Washington, DC, 13 00:00:43,600 --> 00:00:47,680 Speaker 4: Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, 14 00:00:47,920 --> 00:00:52,159 Speaker 4: DAB Digital Radio, London, Sirius XM one nineteen and around 15 00:00:52,200 --> 00:00:54,800 Speaker 4: the world on Bloomberg Radio dot com and via the 16 00:00:54,840 --> 00:00:56,000 Speaker 4: Bloomberg Business App. 17 00:01:00,080 --> 00:01:02,160 Speaker 1: Day to You, I'm Tom Busby, and we begin today's 18 00:01:02,200 --> 00:01:04,560 Speaker 1: program with some key economic data out this week in 19 00:01:04,560 --> 00:01:08,280 Speaker 1: the US. We'll get the first quarter GDP, a second 20 00:01:08,360 --> 00:01:12,880 Speaker 1: look at the GDP, and also core PCE numbers for April. 21 00:01:13,360 --> 00:01:16,120 Speaker 1: What could this data mean for Fed policy moving forward? 22 00:01:16,160 --> 00:01:19,000 Speaker 1: Well for more, we're joined by Stuart paul Us, economist 23 00:01:19,280 --> 00:01:22,280 Speaker 1: with Bloomberg Economics. Now, we got a welcome surprise on 24 00:01:22,360 --> 00:01:25,399 Speaker 1: April CPI a few weeks back. What are you expecting 25 00:01:25,480 --> 00:01:26,640 Speaker 1: to see this week? 26 00:01:27,040 --> 00:01:30,080 Speaker 5: The core PCE inflation measure is going to show some 27 00:01:30,200 --> 00:01:34,040 Speaker 5: cooling in price inflation. We're expecting to see headline PCEE 28 00:01:34,080 --> 00:01:37,119 Speaker 5: inflation of just zero point two percent during the month, 29 00:01:37,440 --> 00:01:40,440 Speaker 5: and that's going to allow the annual measure of PCE 30 00:01:40,680 --> 00:01:43,560 Speaker 5: inflation to slow to about two point six percent from 31 00:01:43,560 --> 00:01:46,800 Speaker 5: two point seven in March. The Fed's preferred measure is 32 00:01:46,920 --> 00:01:50,520 Speaker 5: core PCE inflation and is likely to register just about 33 00:01:50,560 --> 00:01:53,120 Speaker 5: a quarter of one percent during the month. Most of 34 00:01:53,160 --> 00:01:55,640 Speaker 5: the consensus is expecting about zero point three. We're a 35 00:01:55,720 --> 00:01:59,120 Speaker 5: touch below that. That's going to hold the annual measure 36 00:01:59,120 --> 00:02:02,720 Speaker 5: of core inflation and at two point eight percent holding 37 00:02:02,760 --> 00:02:07,040 Speaker 5: steady between March and April. And it's a really slow, 38 00:02:07,200 --> 00:02:10,760 Speaker 5: gradual pace of disinflation that we're seeing. And some of 39 00:02:10,800 --> 00:02:13,920 Speaker 5: that in April is due to the cooling labor market, 40 00:02:14,440 --> 00:02:18,360 Speaker 5: slowing personal income growth, and slowing spending growth. All of 41 00:02:18,400 --> 00:02:21,040 Speaker 5: which we'll see on Friday in the Personal Income and 42 00:02:21,080 --> 00:02:21,800 Speaker 5: Outlayers report. 43 00:02:21,919 --> 00:02:24,840 Speaker 1: All right, so people are pulling back. Is it all 44 00:02:25,040 --> 00:02:28,560 Speaker 1: levels of consumer or is it mostly just lower end? 45 00:02:29,280 --> 00:02:32,839 Speaker 1: So you get a reservation at a restaurant in New York, 46 00:02:32,880 --> 00:02:34,400 Speaker 1: there is, it's full. 47 00:02:34,639 --> 00:02:37,080 Speaker 5: That's right. It does appear that it is mostly at 48 00:02:37,080 --> 00:02:40,399 Speaker 5: the lower end. We see folks are focusing a bit 49 00:02:40,560 --> 00:02:44,000 Speaker 5: more on spending on consumer staples and some of the necessities. 50 00:02:44,360 --> 00:02:46,919 Speaker 5: They are raining in their spending a little bit on 51 00:02:46,960 --> 00:02:50,079 Speaker 5: some of the more discretionary items. If you look at 52 00:02:50,120 --> 00:02:53,000 Speaker 5: retail sales for example, which we saw earlier this month, 53 00:02:53,600 --> 00:02:56,560 Speaker 5: basically the entire increase in spending that we saw on 54 00:02:56,600 --> 00:03:00,400 Speaker 5: clothing was just an increase in prices. And if that's 55 00:03:00,480 --> 00:03:04,160 Speaker 5: downstream of retailers doing a good job of managing their 56 00:03:04,200 --> 00:03:08,600 Speaker 5: inventories rather than consumers just going out and spending more, 57 00:03:09,400 --> 00:03:12,960 Speaker 5: it is indicative of a bit more of some belt 58 00:03:13,000 --> 00:03:14,400 Speaker 5: tightening on the part of consumers. 59 00:03:14,480 --> 00:03:17,239 Speaker 1: Oh yeah, and we saw that from Walmart, which lowered 60 00:03:17,240 --> 00:03:20,160 Speaker 1: prices in the first quarter and sales rose, and they 61 00:03:20,200 --> 00:03:23,399 Speaker 1: say more consumers who don't normally shop here come in. 62 00:03:24,160 --> 00:03:26,640 Speaker 1: And now Target doing the same thing, and these are 63 00:03:27,639 --> 00:03:31,000 Speaker 1: those two companies account for about one third of all 64 00:03:31,080 --> 00:03:33,640 Speaker 1: the grocery sold in the US, so it's not a 65 00:03:33,680 --> 00:03:34,840 Speaker 1: small thing, that's right. 66 00:03:34,880 --> 00:03:37,240 Speaker 5: There are some folks who are rotating from higher end 67 00:03:37,280 --> 00:03:40,760 Speaker 5: retailers to some of those lower end retailers. They are 68 00:03:40,760 --> 00:03:42,960 Speaker 5: doing a little bit of bargain hunting out there, and 69 00:03:42,960 --> 00:03:45,760 Speaker 5: they are focusing more on those consumer staples as opposed 70 00:03:45,760 --> 00:03:48,560 Speaker 5: to discretionary spending. We would expect to see folks like 71 00:03:48,600 --> 00:03:52,320 Speaker 5: Walmart and Target benefiting as opposed to higher end retailers 72 00:03:52,360 --> 00:03:56,320 Speaker 5: and folks that are selling more intra sensitive durable goods. 73 00:03:56,320 --> 00:03:59,600 Speaker 1: For example. Now, how about gasoline? And I ask because 74 00:03:59,640 --> 00:04:01,800 Speaker 1: here we're coming into the summer season. When you get 75 00:04:01,840 --> 00:04:05,520 Speaker 1: the summer blends, usually prices go up for gasoline, not 76 00:04:05,560 --> 00:04:08,000 Speaker 1: only because of demand, but the more expensive way that 77 00:04:08,040 --> 00:04:11,000 Speaker 1: they have to fabricate that summer blend. What do you 78 00:04:11,000 --> 00:04:14,040 Speaker 1: expect to see there? If that affects everybody, poor, rich, 79 00:04:14,160 --> 00:04:15,000 Speaker 1: doesn't matter. 80 00:04:14,960 --> 00:04:17,919 Speaker 5: That's right. So we are expecting to see gases gas 81 00:04:17,920 --> 00:04:22,880 Speaker 5: priceline rising in line with typical seasonal factors. Gasoline prices 82 00:04:22,920 --> 00:04:26,360 Speaker 5: are downstream from global energy prices, and there's very little 83 00:04:26,440 --> 00:04:31,080 Speaker 5: that folks can do to combat rising global energy prices. Fortunately, 84 00:04:31,160 --> 00:04:34,320 Speaker 5: there's very little geopolitical risk premium, despite there being some 85 00:04:34,600 --> 00:04:37,159 Speaker 5: conflict in the Middle East. And if we think about 86 00:04:37,200 --> 00:04:40,080 Speaker 5: it in terms of consumer spending on a real basis, 87 00:04:40,520 --> 00:04:44,120 Speaker 5: spending on gasoline is very very steady once you adjust 88 00:04:44,160 --> 00:04:48,680 Speaker 5: for fluctuations in gasoline prices. So again, like you say, 89 00:04:48,680 --> 00:04:50,680 Speaker 5: it is the sort of thing that affects everybody. It 90 00:04:50,720 --> 00:04:54,599 Speaker 5: does shrip out the ability of consumers to spend more 91 00:04:54,839 --> 00:04:59,000 Speaker 5: on other more discretionary categories, and perhaps that's part of 92 00:04:59,040 --> 00:05:01,839 Speaker 5: the reason why we're seeing consumers rotating away from the 93 00:05:01,880 --> 00:05:05,039 Speaker 5: more interest sensitive, the more discretionary spending categories. 94 00:05:05,440 --> 00:05:09,040 Speaker 1: Now in April for the CPI, we got a nice surprise. 95 00:05:09,640 --> 00:05:13,680 Speaker 1: After three months this year of inflation going higher, we 96 00:05:13,760 --> 00:05:16,839 Speaker 1: got a little pullback one month though not a pattern, 97 00:05:17,080 --> 00:05:20,320 Speaker 1: not a pattern, but it sounds like you're expecting, you know, 98 00:05:20,440 --> 00:05:22,960 Speaker 1: the PCE to be pretty good. What does that mean? 99 00:05:23,760 --> 00:05:27,000 Speaker 1: And do you think we're maybe turning a corner or 100 00:05:27,040 --> 00:05:30,040 Speaker 1: do you think the Fed is hoping we're turning a corner? 101 00:05:30,400 --> 00:05:33,320 Speaker 5: The timing really matters here, right, So these are all 102 00:05:33,360 --> 00:05:36,720 Speaker 5: April figures, and we did see that Q one was 103 00:05:37,000 --> 00:05:39,200 Speaker 5: quite hot. It was hot for prices. It was hot 104 00:05:39,240 --> 00:05:41,960 Speaker 5: for economic growth. We'll get some revisions to the Q 105 00:05:42,080 --> 00:05:45,640 Speaker 5: one GDP numbers coming up this week, but all things considered, 106 00:05:45,680 --> 00:05:49,160 Speaker 5: domestic economic activity was really strong through March. As we 107 00:05:49,240 --> 00:05:52,680 Speaker 5: made the transition into April, we started seeing the economy 108 00:05:53,040 --> 00:05:56,840 Speaker 5: end prices losing some of that momentum. As you say, 109 00:05:56,960 --> 00:05:59,240 Speaker 5: it's not a pattern. We did hear a lot of 110 00:05:59,279 --> 00:06:04,880 Speaker 5: FED speak this week that completely took a summer rate cut, 111 00:06:04,920 --> 00:06:08,400 Speaker 5: either in June coming up or in July off the table. 112 00:06:08,880 --> 00:06:12,080 Speaker 5: Markets are currently pricing in just two rate cuts this year, 113 00:06:12,440 --> 00:06:15,520 Speaker 5: but I think that, if anything, risk probably skews to 114 00:06:15,880 --> 00:06:18,960 Speaker 5: maybe just having one twenty five basis point cut this year, 115 00:06:19,080 --> 00:06:22,359 Speaker 5: perhaps just in December, but very likely in the fourth quarter. 116 00:06:22,440 --> 00:06:24,839 Speaker 5: So what does it mean. It means that we are 117 00:06:25,040 --> 00:06:27,640 Speaker 5: seeing some of the waning momentum that the FED has 118 00:06:27,680 --> 00:06:31,240 Speaker 5: been looking for to gain confidence that prices will sustainably 119 00:06:31,279 --> 00:06:34,640 Speaker 5: go towards that two percent inflation target. But waning momentum 120 00:06:34,640 --> 00:06:37,640 Speaker 5: isn't enough. There needs to be a more persistent, more 121 00:06:37,760 --> 00:06:41,800 Speaker 5: convincing slide towards that two percent inflation target. 122 00:06:41,800 --> 00:06:45,040 Speaker 1: And we're nowhere near that right now, and the Fed 123 00:06:45,080 --> 00:06:47,479 Speaker 1: does meet Let's see June eleventh and twelfth, So that's 124 00:06:47,480 --> 00:06:51,440 Speaker 1: coming up soon. Obviously, nobody, especially after what we heard 125 00:06:51,520 --> 00:06:55,360 Speaker 1: last week from pretty much every single Fed governor, FED president, 126 00:06:55,400 --> 00:06:59,120 Speaker 1: FED official, that don't expect a rate cut anytime soon. 127 00:06:59,279 --> 00:07:01,280 Speaker 5: That's right. The June meeting, we're going to get the 128 00:07:01,320 --> 00:07:04,440 Speaker 5: new summary of the economic projections commonly referred to as. 129 00:07:04,320 --> 00:07:05,159 Speaker 4: The dot plot. 130 00:07:05,720 --> 00:07:09,200 Speaker 5: In the previous dot plot from March FED officials, the 131 00:07:09,279 --> 00:07:12,080 Speaker 5: median FED official was expecting to see seventy five basis 132 00:07:12,080 --> 00:07:14,600 Speaker 5: points of cuts this year. We expect that the June 133 00:07:14,640 --> 00:07:17,680 Speaker 5: dot plot is going to show just fifty basis points 134 00:07:17,720 --> 00:07:20,800 Speaker 5: a cut this year. And so not only are we 135 00:07:20,840 --> 00:07:22,400 Speaker 5: not going to see a cut coming up, but they're 136 00:07:22,400 --> 00:07:25,320 Speaker 5: going to push out expectations for any cuts this year. 137 00:07:25,600 --> 00:07:25,760 Speaker 6: Well. 138 00:07:25,760 --> 00:07:29,280 Speaker 1: Our thanks to Stuart paul Us, economists with Bloomberg Economics. 139 00:07:29,600 --> 00:07:34,200 Speaker 1: Next week, computers services giants Dell and HP report their 140 00:07:34,280 --> 00:07:37,840 Speaker 1: latest quarterly results, just as both make a huge push 141 00:07:37,880 --> 00:07:42,160 Speaker 1: into hardware infused with artificial intelligence technology. Now for more 142 00:07:42,200 --> 00:07:44,720 Speaker 1: on those companies and what to expect next, we're joined 143 00:07:44,760 --> 00:07:50,280 Speaker 1: by Wujin Hoe, Bloomberg Intelligence Senior technology analyst. Well Woujin 144 00:07:50,360 --> 00:07:55,240 Speaker 1: Before we get into the newest proclamations from Dell HP. 145 00:07:55,880 --> 00:07:59,120 Speaker 1: What role did artificial intelligence play in the upcoming earnings, 146 00:07:59,160 --> 00:08:01,160 Speaker 1: if at all? And what are you expecting to see 147 00:08:01,160 --> 00:08:01,800 Speaker 1: in those earnings? 148 00:08:01,840 --> 00:08:06,280 Speaker 7: Well, if we think about AI artificial intelligence, there's two 149 00:08:06,360 --> 00:08:12,000 Speaker 7: aspects for both Dell and HP. Dell has AI PCs 150 00:08:12,400 --> 00:08:15,880 Speaker 7: as well as HP, and that's still a fairly new 151 00:08:16,000 --> 00:08:19,720 Speaker 7: category for both of those those companies. And but you 152 00:08:19,800 --> 00:08:24,400 Speaker 7: also have AI servers and Dell has much more exposure 153 00:08:24,880 --> 00:08:29,480 Speaker 7: to AI servers and that's already driving growth momentum for Dell, 154 00:08:30,400 --> 00:08:32,960 Speaker 7: and I expected to drive more momentum going forward. 155 00:08:33,440 --> 00:08:36,240 Speaker 1: Okay, so they're they're they're a little ahead of the game. 156 00:08:37,000 --> 00:08:41,000 Speaker 1: But this past week we learned from Dell at one 157 00:08:41,000 --> 00:08:45,000 Speaker 1: of their showcases that it looks like they're almost starting 158 00:08:45,040 --> 00:08:48,080 Speaker 1: over with these AI p c s and laptops and 159 00:08:48,480 --> 00:08:50,320 Speaker 1: they're promising a whole new world. Why don't you tell 160 00:08:50,400 --> 00:08:50,800 Speaker 1: us about that? 161 00:08:50,840 --> 00:08:53,000 Speaker 7: Well, I mean, if you think about AI PC's, it's 162 00:08:53,000 --> 00:08:56,120 Speaker 7: still a fairly new category. As I said, what you're 163 00:08:56,120 --> 00:08:58,880 Speaker 7: seeing with a PCs is that you're getting new chips 164 00:08:59,600 --> 00:09:04,560 Speaker 7: that have neural processors units, which it essentially enables the 165 00:09:04,600 --> 00:09:11,120 Speaker 7: AI functions on the PCs. Traditionally what AI applications run 166 00:09:11,160 --> 00:09:15,320 Speaker 7: on are graphic processors, but they're less efficient on the 167 00:09:15,360 --> 00:09:21,240 Speaker 7: PC and Intel Qualcomm AMD. They are all announcing or 168 00:09:21,360 --> 00:09:26,200 Speaker 7: have announced, new chips with these NPUs, and the number 169 00:09:26,320 --> 00:09:30,280 Speaker 7: that we expect this year is roughly about forty million 170 00:09:30,320 --> 00:09:33,880 Speaker 7: to fifty million units of aipcs that Dell as well 171 00:09:33,920 --> 00:09:35,360 Speaker 7: as HPE will participate in. 172 00:09:35,600 --> 00:09:40,520 Speaker 1: And these process or these semiconductor makers have made deals 173 00:09:40,559 --> 00:09:43,600 Speaker 1: with just about everybody, and you know it seems Yeah. 174 00:09:43,720 --> 00:09:46,679 Speaker 7: One of the things that Dell said at their event 175 00:09:46,800 --> 00:09:48,800 Speaker 7: is that they expect every PC will be an AI 176 00:09:48,920 --> 00:09:53,240 Speaker 7: enabled PC. Right, So look beyond the forty million this year, 177 00:09:53,360 --> 00:09:56,520 Speaker 7: forty to fifty million this year, I'm forecasting roughly around 178 00:09:56,600 --> 00:10:00,560 Speaker 7: two hundred and sixty seven million PCs in total next year. 179 00:10:00,760 --> 00:10:02,720 Speaker 7: I wouldn't be surprised that there will be some sort 180 00:10:02,720 --> 00:10:06,959 Speaker 7: of AI enablement for roughly a third or half of 181 00:10:07,000 --> 00:10:08,800 Speaker 7: the pieces that are out there now. 182 00:10:08,880 --> 00:10:13,600 Speaker 1: This almost exponential leap into AI, is this what's going 183 00:10:13,679 --> 00:10:17,520 Speaker 1: to really jumpstart sales of hardware? And you talked about servers, 184 00:10:17,840 --> 00:10:20,320 Speaker 1: but I mean some of these Dell they saw huge 185 00:10:20,360 --> 00:10:23,280 Speaker 1: gains during the pandemic and then things have slacked off 186 00:10:23,440 --> 00:10:26,160 Speaker 1: HP you know has been almost and also ran for 187 00:10:26,240 --> 00:10:28,680 Speaker 1: a little bit here. But is this going to really 188 00:10:29,200 --> 00:10:29,960 Speaker 1: boost sales? 189 00:10:30,280 --> 00:10:33,280 Speaker 7: So there are two aspects of sales, right, unit volume 190 00:10:33,320 --> 00:10:36,800 Speaker 7: growth and ASP growth. Right, And then if we think 191 00:10:36,800 --> 00:10:40,120 Speaker 7: about it from a unit volume perspective, this year, I 192 00:10:40,120 --> 00:10:44,400 Speaker 7: don't think so. I do think both companies are forecasting 193 00:10:44,480 --> 00:10:49,199 Speaker 7: roughly low single digit growth in terms of PC. In 194 00:10:49,320 --> 00:10:51,400 Speaker 7: terms of the PC market, I don't think that's going 195 00:10:51,480 --> 00:10:55,160 Speaker 7: to change when they report earnings later this week. Now, 196 00:10:55,400 --> 00:10:58,560 Speaker 7: in terms of asps, I'll tell you what was very 197 00:10:58,559 --> 00:11:02,760 Speaker 7: interesting the Apple I pad event, Right, they introduced a 198 00:11:02,840 --> 00:11:05,720 Speaker 7: new chip that was AI enabled, their own chip, right, 199 00:11:05,760 --> 00:11:08,440 Speaker 7: their own chip that was AI enabled. There was no 200 00:11:08,640 --> 00:11:12,640 Speaker 7: ASP boost to the new iPad pro. What that tells 201 00:11:12,720 --> 00:11:16,360 Speaker 7: me that the basic PC that is AI enabled may 202 00:11:16,400 --> 00:11:20,680 Speaker 7: not get an ASP boost. That being said, what we're 203 00:11:20,720 --> 00:11:24,560 Speaker 7: about roughly four years into coming out of COVID right now, 204 00:11:24,640 --> 00:11:27,680 Speaker 7: or the beginning of COVID. The average refresh cycle for 205 00:11:27,840 --> 00:11:30,800 Speaker 7: the corporate PC is roughly four to five years. We're 206 00:11:30,800 --> 00:11:34,480 Speaker 7: actually in the early cusp of the necessary refresh cycle 207 00:11:34,559 --> 00:11:36,959 Speaker 7: number one. And there's a bigger catalyst that's coming in 208 00:11:37,880 --> 00:11:40,640 Speaker 7: later this year and early next year the Windows eleven 209 00:11:40,760 --> 00:11:43,440 Speaker 7: upgrade cycle, and I actually think twenty twenty five PC 210 00:11:43,600 --> 00:11:45,720 Speaker 7: volumes are could be much stronger than twenty twenty four. 211 00:11:46,240 --> 00:11:49,080 Speaker 1: Corporate schools, consumer everybody. 212 00:11:49,720 --> 00:11:55,520 Speaker 7: Corporates predominantly right, I think the enthusiasts on the consumer 213 00:11:55,559 --> 00:12:00,840 Speaker 7: side will really lean into the AIPC schools. They're gonna 214 00:12:00,840 --> 00:12:01,280 Speaker 7: take a while. 215 00:12:01,520 --> 00:12:05,640 Speaker 1: Yeah, that's a big expenditure. Well, our thanks to Wu 216 00:12:05,720 --> 00:12:09,960 Speaker 1: Jin Hoo, Bloomberg Intelligence Senior Technology Analyst, and coming up 217 00:12:10,000 --> 00:12:12,520 Speaker 1: on Bloomberg day Break weekend, a look at the global 218 00:12:12,520 --> 00:12:15,960 Speaker 1: health landscape ahead of the seventy seventh World Health Assembly 219 00:12:16,280 --> 00:12:30,480 Speaker 1: in Geneva. I'm Tom Busby, and this is Bloomberg. This 220 00:12:30,520 --> 00:12:32,840 Speaker 1: is Bloomberg day Break Weekend, our global look ahead at 221 00:12:32,840 --> 00:12:35,480 Speaker 1: the top stories for investors in the coming week. I'm 222 00:12:35,520 --> 00:12:38,000 Speaker 1: Tom Busby in New York. Up later in our program 223 00:12:38,040 --> 00:12:41,320 Speaker 1: will look ahead to the trilateral meeting between China, Japan, 224 00:12:41,440 --> 00:12:44,280 Speaker 1: and South Korea and what it means for their relationships 225 00:12:44,320 --> 00:12:48,520 Speaker 1: moving forward. But first, since COVID nineteen, healthcare has become 226 00:12:48,679 --> 00:12:51,640 Speaker 1: even more of a big business. This past March, Danish 227 00:12:51,679 --> 00:12:57,559 Speaker 1: drugmaker Novo Nordisk became Europe's most valuable company. Overtaking LVMH 228 00:12:57,600 --> 00:13:01,800 Speaker 1: thanks to its wonder drugs, weight life medicines ozempic and wagovi. 229 00:13:02,240 --> 00:13:05,360 Speaker 1: And this week is the seventy seventh World Health Assembly. 230 00:13:05,440 --> 00:13:08,480 Speaker 1: We're reconciling the worlds of business and healthcare will be 231 00:13:08,640 --> 00:13:10,240 Speaker 1: just one topic on the agenda. 232 00:13:10,559 --> 00:13:10,920 Speaker 8: For more. 233 00:13:11,000 --> 00:13:13,440 Speaker 1: Let's go to London and bring in Bloomberg Daybreak europe 234 00:13:13,440 --> 00:13:15,160 Speaker 1: Banker Stephen Carroll. 235 00:13:15,360 --> 00:13:18,560 Speaker 2: Tom The World Health Assembly is the decision making body 236 00:13:18,640 --> 00:13:21,840 Speaker 2: of the World Health Organization, and delegates from the who's 237 00:13:21,960 --> 00:13:24,439 Speaker 2: member states will be gathering in Geneva in the coming 238 00:13:24,520 --> 00:13:27,640 Speaker 2: days with some key issues in mind. They're aiming to 239 00:13:27,679 --> 00:13:30,800 Speaker 2: improve access to treatment around the world, with a key 240 00:13:30,840 --> 00:13:35,079 Speaker 2: ambition to see one billion more people benefit from universal 241 00:13:35,240 --> 00:13:38,480 Speaker 2: health coverage. Reaching every corner of the world with healthcare 242 00:13:38,559 --> 00:13:41,160 Speaker 2: is no easy feat, though, and often requires the use 243 00:13:41,240 --> 00:13:45,600 Speaker 2: of complementary tools. It's something Nissa Leung, managing partner at 244 00:13:45,679 --> 00:13:49,080 Speaker 2: Chieming Venture Partners, has been discussing that this year's Cutar 245 00:13:49,200 --> 00:13:50,160 Speaker 2: Economic Forum. 246 00:13:50,520 --> 00:13:53,880 Speaker 9: I've been involved with healthcare investment for the last eighteen 247 00:13:53,960 --> 00:13:57,600 Speaker 9: years and it's great to see the development we've seen 248 00:13:57,640 --> 00:14:02,280 Speaker 9: in the last fifteen years and so forth. At the beginning, 249 00:14:02,800 --> 00:14:06,520 Speaker 9: we would be looking at potentially areas that you know, 250 00:14:06,559 --> 00:14:10,240 Speaker 9: when we first started in China and investing in areas 251 00:14:10,240 --> 00:14:13,080 Speaker 9: where there's no metronic, there's no vizor and whatnot, So 252 00:14:13,120 --> 00:14:16,200 Speaker 9: how do we provide basic services and care and drugs 253 00:14:16,200 --> 00:14:19,960 Speaker 9: and devices to China. And as we continue to grow 254 00:14:20,080 --> 00:14:23,120 Speaker 9: in the last ten years, we started looking at innovation 255 00:14:23,400 --> 00:14:26,120 Speaker 9: from all over the world and we think about how 256 00:14:26,160 --> 00:14:29,280 Speaker 9: do we use technology, how do we use the next 257 00:14:29,800 --> 00:14:33,840 Speaker 9: dimensions of life scien institutes and whatnot to actually help 258 00:14:33,960 --> 00:14:38,240 Speaker 9: our research institutions to develop beyond. So you know, we're 259 00:14:38,360 --> 00:14:41,720 Speaker 9: very one of the early investors in AI drug discovery, 260 00:14:42,400 --> 00:14:46,360 Speaker 9: starting with the investment in Sturinger in New York, and 261 00:14:46,480 --> 00:14:49,160 Speaker 9: we were also angel investor in Recursion out of Salt 262 00:14:49,240 --> 00:14:52,720 Speaker 9: Lake City, and then followed by in Silico and so forth. 263 00:14:53,080 --> 00:14:55,960 Speaker 9: So you know what's really interesting is now we're able 264 00:14:56,000 --> 00:14:59,280 Speaker 9: to use AI to identify target and use AI to 265 00:14:59,320 --> 00:15:02,840 Speaker 9: develop moleca the structure, and now we have drugs in 266 00:15:02,960 --> 00:15:06,160 Speaker 9: phase two clinical in US with a pipeline out of 267 00:15:06,200 --> 00:15:10,240 Speaker 9: another thirteen drugs in the pipeline focused on unmad medical 268 00:15:10,320 --> 00:15:13,200 Speaker 9: needs that previously we were not able to develop on 269 00:15:13,240 --> 00:15:17,000 Speaker 9: our own. So now beyond that we've actually started looking into, 270 00:15:17,040 --> 00:15:21,720 Speaker 9: and we've recently invested in a company. We're thinking, since 271 00:15:21,720 --> 00:15:24,640 Speaker 9: we have so many targets coming out from AI assets 272 00:15:24,640 --> 00:15:28,000 Speaker 9: and assets, we can't continue to rely on animal studies. 273 00:15:28,080 --> 00:15:30,640 Speaker 9: That would be the bottleneck. So how can we use 274 00:15:30,680 --> 00:15:34,320 Speaker 9: technology to combat that? So we recently invested in a 275 00:15:34,400 --> 00:15:38,920 Speaker 9: spinoff from Harvard Medical School with institute Organs on the chip, 276 00:15:39,120 --> 00:15:42,080 Speaker 9: so every chip is a different organ including liver that 277 00:15:42,120 --> 00:15:45,600 Speaker 9: would test toxicity and so forth. So we're always thinking, five, ten, 278 00:15:45,720 --> 00:15:47,520 Speaker 9: twenty years from now, what do we need? 279 00:15:47,800 --> 00:15:52,520 Speaker 2: That was Nissa Leung there from Teaming Venture Partners speaking now. 280 00:15:52,520 --> 00:15:55,400 Speaker 2: The pharmaceutical giants are key to developing and rolling out 281 00:15:55,640 --> 00:15:58,200 Speaker 2: new medical treatments. Some of the biggest names in the 282 00:15:58,240 --> 00:16:00,600 Speaker 2: sector have been boosted by block us to a weight 283 00:16:00,600 --> 00:16:04,000 Speaker 2: glass drugs like a Zenpic and d weegav, but others 284 00:16:04,080 --> 00:16:07,720 Speaker 2: like Astrozenica are setting ambitious growth targets too. They want 285 00:16:07,720 --> 00:16:11,240 Speaker 2: to double sales by twenty thirty. In recent days, Astrazeneka's 286 00:16:11,360 --> 00:16:14,320 Speaker 2: CFO Arethana Saren, spoke to Bloomberg. 287 00:16:14,880 --> 00:16:17,840 Speaker 10: The breadth and scope of our medicines is truly incredible, 288 00:16:17,960 --> 00:16:21,080 Speaker 10: and it ranges everything from oncology and rare diseases to 289 00:16:21,480 --> 00:16:24,920 Speaker 10: the medicines in biopharma for metabolic disorders as well as 290 00:16:24,960 --> 00:16:29,280 Speaker 10: respiratory and the growth that we anticipate is both from 291 00:16:29,400 --> 00:16:32,560 Speaker 10: existing products as well as the twenty new medicines that 292 00:16:32,600 --> 00:16:34,400 Speaker 10: we expect to launch by twenty thirty. 293 00:16:34,680 --> 00:16:38,880 Speaker 11: Doncology clearly absolutely fronts and censor as we work our 294 00:16:38,880 --> 00:16:41,960 Speaker 11: way through this period, how big is oncology going to 295 00:16:41,960 --> 00:16:44,200 Speaker 11: be for astrosenica as we get to the end of 296 00:16:44,240 --> 00:16:47,040 Speaker 11: this period, how big a slice of the pie is 297 00:16:47,120 --> 00:16:48,520 Speaker 11: oncology going to represent. 298 00:16:49,320 --> 00:16:52,840 Speaker 10: You know, oncology continues to grow very strongly. Today oncology 299 00:16:52,920 --> 00:16:55,760 Speaker 10: is about forty percent of the business and we expect 300 00:16:55,880 --> 00:17:00,640 Speaker 10: very strong double digit growth in oncology, both in new 301 00:17:00,680 --> 00:17:03,960 Speaker 10: medicines as well as our existing medicines and new indications 302 00:17:04,000 --> 00:17:07,760 Speaker 10: for those medicines. Overall, we have over one hundred and 303 00:17:07,800 --> 00:17:12,200 Speaker 10: twenty Phase two and three studies going on for our medicines, 304 00:17:12,320 --> 00:17:14,800 Speaker 10: and again we're working on a whole bunch of new 305 00:17:14,840 --> 00:17:16,800 Speaker 10: medicines that you'll hear about today. 306 00:17:17,560 --> 00:17:18,919 Speaker 12: Rathern I talk to us a little bit about your 307 00:17:18,920 --> 00:17:22,680 Speaker 12: manufacturing plans here. Recently, there have been investments in facilities 308 00:17:22,680 --> 00:17:27,080 Speaker 12: in Dunkirk, Singapore, Liverpool, even Maryland as well. In light 309 00:17:27,240 --> 00:17:30,119 Speaker 12: of some of the kind of crackdown that US regulatory 310 00:17:30,160 --> 00:17:33,359 Speaker 12: authorities are putting in terms of where supply chains extend 311 00:17:33,359 --> 00:17:37,639 Speaker 12: into Asia. How is Astrodenka tackling that manufacturing story. 312 00:17:38,080 --> 00:17:43,160 Speaker 10: So our manufacturing investments are very strategic. They are aligned 313 00:17:43,280 --> 00:17:46,480 Speaker 10: very much with the new modalities and the new technologies 314 00:17:46,520 --> 00:17:49,840 Speaker 10: that we have in our pipeline. So the announcement, for example, 315 00:17:49,920 --> 00:17:53,280 Speaker 10: in Maryland is for cell therapy products, which we see 316 00:17:53,359 --> 00:17:56,879 Speaker 10: as sort of a completely new modality that will change 317 00:17:56,920 --> 00:18:00,800 Speaker 10: how cancer care and autoimmune diseases are treated. What we 318 00:18:00,840 --> 00:18:05,000 Speaker 10: announced in Singapore is for antibody drug conjugates. We expect 319 00:18:05,040 --> 00:18:09,800 Speaker 10: that antibody drug conjugates will replace traditional chemotherapy over the 320 00:18:09,840 --> 00:18:13,920 Speaker 10: next decade. And so we're making these investments ahead of 321 00:18:13,960 --> 00:18:16,760 Speaker 10: what we see coming in our pipeline because we know 322 00:18:16,960 --> 00:18:20,800 Speaker 10: that these medicines have the potential to be very large medicines. 323 00:18:21,840 --> 00:18:25,440 Speaker 2: That's Aratana Saren from AstraZeneca. They're speaking to our colleagues 324 00:18:25,440 --> 00:18:29,199 Speaker 2: on Bloomberg Television. Those conversations are helping to set the 325 00:18:29,280 --> 00:18:33,440 Speaker 2: industry context for the upcoming World Health Assembly, and our 326 00:18:33,440 --> 00:18:36,200 Speaker 2: health reporter, actually Furlong has been telling me about how 327 00:18:36,240 --> 00:18:37,159 Speaker 2: the gathering works. 328 00:18:37,840 --> 00:18:41,720 Speaker 6: So usually it's all the countries of the World Health Organization, 329 00:18:42,359 --> 00:18:45,640 Speaker 6: which really represents the anti globe, coming together to take 330 00:18:45,680 --> 00:18:49,640 Speaker 6: decisions that sort of set the scene for, you know, 331 00:18:50,000 --> 00:18:53,360 Speaker 6: how to sort of advance you know, global health aims 332 00:18:53,560 --> 00:18:56,359 Speaker 6: for the coming year. This year, it's all about the 333 00:18:56,359 --> 00:19:02,000 Speaker 6: Pandemic Treaty and this is quite controversial potential agreement that's 334 00:19:02,040 --> 00:19:05,240 Speaker 6: still being negotiated, and we're obviously really you know, on 335 00:19:05,280 --> 00:19:09,600 Speaker 6: the cusp of the actual assembly. The agreement would sort 336 00:19:09,600 --> 00:19:12,440 Speaker 6: of set out how countries could be better prepared for 337 00:19:12,560 --> 00:19:18,080 Speaker 6: the next pandemic, and it includes things potential provisions such as, 338 00:19:18,119 --> 00:19:21,520 Speaker 6: you know, how to share vaccines more equitively next time, 339 00:19:22,040 --> 00:19:26,680 Speaker 6: or you know, how to you know, ensure that intellectual 340 00:19:26,680 --> 00:19:31,080 Speaker 6: property rights provisions related to these these medicines enable them 341 00:19:31,119 --> 00:19:34,360 Speaker 6: to be better shared. But it agreement hasn't actually been 342 00:19:34,400 --> 00:19:37,800 Speaker 6: reached and reached yet, so that that is really what 343 00:19:37,920 --> 00:19:41,520 Speaker 6: everyone's waiting to see if we will reach agreement next week. 344 00:19:42,080 --> 00:19:44,840 Speaker 2: Are these discussions also do they look backwards at what 345 00:19:44,920 --> 00:19:48,400 Speaker 2: went wrong, for example, during COVID to try and bring 346 00:19:48,520 --> 00:19:50,800 Speaker 2: lessons from them, or is this sort of a more 347 00:19:50,880 --> 00:19:51,879 Speaker 2: forward looking. 348 00:19:51,600 --> 00:19:55,359 Speaker 6: Event definitely, So it is looking back, it's saying what 349 00:19:55,480 --> 00:19:58,600 Speaker 6: went wrong, and included in the in the draft that's 350 00:19:58,600 --> 00:20:02,480 Speaker 6: that's currently being discussed are many things that would that 351 00:20:02,640 --> 00:20:06,760 Speaker 6: countries believe would fix the mistakes that happened in the past. 352 00:20:06,800 --> 00:20:10,680 Speaker 6: For example, it's things such as when you find viruses 353 00:20:10,720 --> 00:20:12,920 Speaker 6: in a country, you know, how you share that really 354 00:20:13,000 --> 00:20:16,840 Speaker 6: quickly with other countries, and then how drug makers would 355 00:20:16,840 --> 00:20:20,800 Speaker 6: be able to take those virus sequences and produce medicines quickly. 356 00:20:21,200 --> 00:20:24,119 Speaker 6: But a lot of it's really controversial because you know, 357 00:20:24,160 --> 00:20:28,200 Speaker 6: it would require drug makers potentially then to a certain 358 00:20:28,200 --> 00:20:30,440 Speaker 6: amounts of those products that they make with the World 359 00:20:30,480 --> 00:20:34,680 Speaker 6: Health Organization, and countries need to agree to share these products, 360 00:20:35,440 --> 00:20:37,800 Speaker 6: you know, in a more equitable way. And I think 361 00:20:37,840 --> 00:20:40,320 Speaker 6: that you know this is this has become highly controversial, 362 00:20:40,400 --> 00:20:45,360 Speaker 6: and almost separately to that, commentators, particularly right when commentators 363 00:20:45,359 --> 00:20:47,600 Speaker 6: in the US and the UK, have led quite a 364 00:20:47,760 --> 00:20:51,160 Speaker 6: vocal campaign against the Pandemic Treaty, claiming that it would 365 00:20:51,240 --> 00:20:56,440 Speaker 6: violate countries sovereignty and give the who you know, increased 366 00:20:56,480 --> 00:20:59,680 Speaker 6: powers that they believe it shouldn't have. The World Health 367 00:20:59,800 --> 00:21:02,520 Speaker 6: Organization says that you know, that's that's not the case 368 00:21:02,560 --> 00:21:05,359 Speaker 6: that this is in agreement by countries and that the 369 00:21:05,359 --> 00:21:07,960 Speaker 6: countries are pushing for it, But that's sort of I 370 00:21:07,960 --> 00:21:10,560 Speaker 6: suppose Muddy the Water is in the sense and made 371 00:21:10,600 --> 00:21:13,160 Speaker 6: the sort of even more controversial document. 372 00:21:14,480 --> 00:21:18,000 Speaker 2: How much is the industry involved in these discussions? You know, 373 00:21:18,160 --> 00:21:21,120 Speaker 2: drug makers of course very much in focus during COVID, 374 00:21:21,160 --> 00:21:24,280 Speaker 2: but now the focus has you know, been largely in 375 00:21:24,320 --> 00:21:27,320 Speaker 2: recent months on things like the rise of weight loss 376 00:21:27,400 --> 00:21:29,840 Speaker 2: drugs or drugs and aid weight loss for treating diabetes, 377 00:21:29,840 --> 00:21:30,600 Speaker 2: the likes of ZAMPE. 378 00:21:31,160 --> 00:21:33,960 Speaker 6: I think drug makers are following it very closely, and 379 00:21:34,440 --> 00:21:39,000 Speaker 6: they're represented in the discussions by the International Farmer Lobby group, 380 00:21:39,800 --> 00:21:42,320 Speaker 6: you know, and they I think have supporters you know, 381 00:21:42,359 --> 00:21:45,480 Speaker 6: on their side in the form of sort of countries 382 00:21:45,520 --> 00:21:48,919 Speaker 6: like the UK and the US, who you know are 383 00:21:48,960 --> 00:21:52,240 Speaker 6: pushing for similar provisions. For example, you know, drug makers 384 00:21:52,920 --> 00:21:55,959 Speaker 6: gains provisions that might force them to share intellectual property 385 00:21:56,040 --> 00:21:59,320 Speaker 6: rights you know, related to their products, and they're also 386 00:21:59,359 --> 00:22:02,199 Speaker 6: concerned about you know that there's sort of an argument 387 00:22:02,240 --> 00:22:04,000 Speaker 6: for sort of a quid procro If you find a 388 00:22:04,040 --> 00:22:07,359 Speaker 6: genetic sequence of a virus and then you want a 389 00:22:07,400 --> 00:22:10,240 Speaker 6: country wants to share it globally, you know, what should 390 00:22:10,280 --> 00:22:13,439 Speaker 6: that country get back in sort of return for that, 391 00:22:14,000 --> 00:22:17,000 Speaker 6: And drug makers are broadly sort of you know, against 392 00:22:17,000 --> 00:22:18,959 Speaker 6: the idea that there should be that sort of direct 393 00:22:19,000 --> 00:22:22,920 Speaker 6: relationship between sharing virus sequences and then and then countries 394 00:22:22,960 --> 00:22:26,760 Speaker 6: getting something back, So I think they're very much involved. Obviously, 395 00:22:27,200 --> 00:22:29,720 Speaker 6: you know, there's quite a small chance that this agreement 396 00:22:29,760 --> 00:22:33,080 Speaker 6: actually might be reached in time, so I suppose that 397 00:22:33,280 --> 00:22:35,199 Speaker 6: you know, there's a sort of less concern that some 398 00:22:35,240 --> 00:22:38,040 Speaker 6: of these very controversial provisions might actually be included in 399 00:22:38,080 --> 00:22:38,440 Speaker 6: the end. 400 00:22:39,160 --> 00:22:42,840 Speaker 2: Where I suppose are the biggest roadblocks in arriving at 401 00:22:42,840 --> 00:22:46,119 Speaker 2: that agreement. Is it a case of countries lobbying for 402 00:22:46,200 --> 00:22:48,640 Speaker 2: their own particular interests or is it on the kind 403 00:22:48,680 --> 00:22:50,080 Speaker 2: of the issues themselves. 404 00:22:50,600 --> 00:22:54,520 Speaker 6: It's I think the issues themselves, because they require you know, 405 00:22:54,560 --> 00:22:56,960 Speaker 6: they they would this would be an agreement that then 406 00:22:57,000 --> 00:22:59,399 Speaker 6: would be you know, sort of for the foreseeable future, 407 00:22:59,480 --> 00:23:02,680 Speaker 6: for any pandemic in the future. So you know, it's 408 00:23:02,880 --> 00:23:05,359 Speaker 6: making these decisions as you know, it's it's not something 409 00:23:05,400 --> 00:23:09,440 Speaker 6: that countries do likely and you know, international treaties are 410 00:23:09,800 --> 00:23:13,639 Speaker 6: quite rare. As diplomats negotiating this would argue, you know, 411 00:23:13,720 --> 00:23:15,720 Speaker 6: the timelines that they've had, which has just been a 412 00:23:15,720 --> 00:23:18,760 Speaker 6: few years since the end of the pandemic, you know, 413 00:23:18,960 --> 00:23:21,040 Speaker 6: are actually it's actually pretty short, even though it might 414 00:23:21,040 --> 00:23:26,560 Speaker 6: seem quite long, you know, in negotiating international treaties. I 415 00:23:26,560 --> 00:23:29,439 Speaker 6: think because there's such you know, controversial issues and I 416 00:23:29,440 --> 00:23:32,440 Speaker 6: suppose there's no current pandemic going on, that's sort of 417 00:23:32,440 --> 00:23:35,120 Speaker 6: putting the pressure on them. That's made it quite difficult 418 00:23:35,200 --> 00:23:37,960 Speaker 6: to reach that agreement, and countries, some countries are pushing 419 00:23:37,960 --> 00:23:41,679 Speaker 6: for more time to to to conclude the negotiations and 420 00:23:41,720 --> 00:23:45,520 Speaker 6: potentially saying should we delay this to the next World 421 00:23:45,520 --> 00:23:48,720 Speaker 6: Health Assembly, which would be next year obviously or potentially 422 00:23:48,800 --> 00:23:52,200 Speaker 6: later this year, So they're still you know, uncertainty about 423 00:23:52,200 --> 00:23:54,800 Speaker 6: when this when this would actually be agreed. 424 00:23:55,320 --> 00:23:58,120 Speaker 2: Okay, So that that the pandemic agreement, as you've outlined, 425 00:23:58,119 --> 00:24:00,800 Speaker 2: a very key focus of the discussion these anything else 426 00:24:00,800 --> 00:24:03,240 Speaker 2: you're going to be watching out for in the conversations 427 00:24:03,240 --> 00:24:05,320 Speaker 2: happening in Geneva, I think that. 428 00:24:05,240 --> 00:24:08,600 Speaker 6: Will really be key. But I suppose it's also about 429 00:24:08,600 --> 00:24:11,520 Speaker 6: the World Health Organization's broader role on you know, hard 430 00:24:11,520 --> 00:24:15,080 Speaker 6: important countries. See this institution that is really sort of 431 00:24:15,080 --> 00:24:19,119 Speaker 6: a guidance setting institution and you know, they recently have 432 00:24:19,240 --> 00:24:23,200 Speaker 6: pushed forward on guidance on digital health, on artificial intelligence 433 00:24:23,200 --> 00:24:25,800 Speaker 6: as well, so you know, they're trying to sort of 434 00:24:26,200 --> 00:24:28,280 Speaker 6: ensure that they are relevant to the you know, to 435 00:24:28,359 --> 00:24:30,920 Speaker 6: the current world that we're living in and ensure that 436 00:24:31,000 --> 00:24:34,320 Speaker 6: they provide guidance on global health issues. Obviously, you know, 437 00:24:34,359 --> 00:24:38,040 Speaker 6: whether they take an increasing role on obesity drugs in 438 00:24:38,080 --> 00:24:42,159 Speaker 6: the form of you know, sort of commenting on the 439 00:24:42,320 --> 00:24:46,040 Speaker 6: price of the drugs and also ensuring that countries potentially 440 00:24:46,080 --> 00:24:49,600 Speaker 6: include these drugs in the list of essential medicines is 441 00:24:49,600 --> 00:24:52,280 Speaker 6: also something that you know, we'll be watching for, not 442 00:24:52,359 --> 00:24:56,679 Speaker 6: necessarily at this upcoming World Health Assembly, but in the 443 00:24:56,720 --> 00:25:01,360 Speaker 6: coming months, you know, more broadly at the at the wh. 444 00:25:00,640 --> 00:25:04,960 Speaker 2: Thanks to our health reporter Ashley Furlong, I'm Stephen Carolyn London. 445 00:25:05,000 --> 00:25:07,480 Speaker 2: You can catch us every weekday morning here for Bloomberg 446 00:25:07,520 --> 00:25:10,440 Speaker 2: Daybreak Europe, beginning at six am in London and one 447 00:25:10,480 --> 00:25:11,679 Speaker 2: am on Wall Streets. 448 00:25:11,720 --> 00:25:14,439 Speaker 1: Tom, thank you, Steven, and coming up on Bloomberg day 449 00:25:14,440 --> 00:25:17,679 Speaker 1: Break weekend to look ahead to a trilateral summit with China, 450 00:25:17,840 --> 00:25:21,919 Speaker 1: Japan and South Korea. I'm Tom Busby and this is Bloomberg. 451 00:25:33,080 --> 00:25:35,120 Speaker 1: I'm Tom Busby in New York with your global look 452 00:25:35,119 --> 00:25:37,440 Speaker 1: ahead at the top stories for investors in the coming week. 453 00:25:37,920 --> 00:25:41,600 Speaker 1: We look ahead now to a trilateral meeting between China, Japan, 454 00:25:41,720 --> 00:25:44,800 Speaker 1: and South Korea. The two day summit may be seen 455 00:25:44,880 --> 00:25:48,000 Speaker 1: as an opportunity for Japan and South Korea to manage 456 00:25:48,200 --> 00:25:51,239 Speaker 1: their relationship with China. For more, Let's go to Hong 457 00:25:51,320 --> 00:25:54,800 Speaker 1: Kong and Bloomberg Daybreak Asia hosts Brian Curtis and Doug. 458 00:25:54,680 --> 00:25:57,840 Speaker 3: Krisner tom The talks are expected to cover a range 459 00:25:57,840 --> 00:26:02,240 Speaker 3: of issues from trade and economic policy to geopolitics and 460 00:26:02,320 --> 00:26:06,080 Speaker 3: peace and security, and these discussions will be happening at 461 00:26:06,080 --> 00:26:09,560 Speaker 3: a high level. Japanese Prime Minister of Fumiyo Kishida, South 462 00:26:09,640 --> 00:26:14,879 Speaker 3: Korean President Yunsokyol, and Chinese Premier Lie Chung will attend. 463 00:26:15,240 --> 00:26:17,560 Speaker 13: And the summer will be the first major test on 464 00:26:17,600 --> 00:26:20,920 Speaker 13: the diplomatic front for President Yun. He's trying to maintain 465 00:26:21,040 --> 00:26:24,920 Speaker 13: momentum for the remaining three years of his term. Last month, 466 00:26:25,000 --> 00:26:28,480 Speaker 13: Yun suffered a major defeat in South Korean parliamentary elections. 467 00:26:29,000 --> 00:26:32,280 Speaker 13: From the China perspective, Beijing is likely looking to hamper 468 00:26:32,400 --> 00:26:36,000 Speaker 13: strengthening American ties with both Tokyo and Soul. 469 00:26:35,840 --> 00:26:38,840 Speaker 3: And we spoke earlier with Heiner tongan senior fellow at 470 00:26:38,840 --> 00:26:42,040 Speaker 3: the Taiha Institute. I asked him about the role of 471 00:26:42,080 --> 00:26:45,200 Speaker 3: the US in relations with these three countries. 472 00:26:45,359 --> 00:26:49,080 Speaker 14: If Washington feels strongly that they have to contain China 473 00:26:49,080 --> 00:26:51,840 Speaker 14: and that's the only thing that works for them, they're 474 00:26:51,840 --> 00:26:53,679 Speaker 14: going to put as much pressure as they can on 475 00:26:53,880 --> 00:26:57,520 Speaker 14: allies to kind of toe the line. But you know, 476 00:26:57,640 --> 00:27:01,520 Speaker 14: right now things despite the way things look in the US, 477 00:27:01,600 --> 00:27:03,320 Speaker 14: you know, you have positive numbers, but you have a 478 00:27:03,359 --> 00:27:06,520 Speaker 14: lot of unhappy people, and that could mean political change. 479 00:27:06,560 --> 00:27:08,560 Speaker 14: A lot of people are wondering if Trump was going 480 00:27:08,560 --> 00:27:11,400 Speaker 14: to be in and how that will impact this kind 481 00:27:11,400 --> 00:27:15,840 Speaker 14: of relationship, especially in Asia. It's not clear how he 482 00:27:15,880 --> 00:27:18,600 Speaker 14: wants to treat it. In the past, he you know, 483 00:27:18,640 --> 00:27:22,760 Speaker 14: he dallied with North Korea. Obviously that's still an issue there. 484 00:27:23,160 --> 00:27:25,720 Speaker 14: I don't know that Young Kim is going to deal 485 00:27:25,720 --> 00:27:28,080 Speaker 14: with him again. I think he felt humiliated by that. 486 00:27:28,160 --> 00:27:29,520 Speaker 1: So there's got to be some other. 487 00:27:29,359 --> 00:27:32,600 Speaker 14: Way of dealing with a nuclearized North Korea, hopefully not 488 00:27:32,680 --> 00:27:36,800 Speaker 14: one that involves a nuclear arms race throughout Asia. 489 00:27:36,920 --> 00:27:39,240 Speaker 13: So Japan and South Korea moved a lot closer to 490 00:27:39,359 --> 00:27:41,520 Speaker 13: Washington in recent years. But if you look at this 491 00:27:41,600 --> 00:27:45,080 Speaker 13: relationship going back a long period of time, there are 492 00:27:45,119 --> 00:27:48,000 Speaker 13: not so many things that China and South Korea agree 493 00:27:48,040 --> 00:27:52,439 Speaker 13: on except for you know, very bad feelings that stretch 494 00:27:52,480 --> 00:27:54,639 Speaker 13: all the way back to the Second World War about Japan. 495 00:27:54,800 --> 00:27:57,080 Speaker 14: Yeah, you know, and I don't think that's useful. I mean, 496 00:27:57,119 --> 00:27:59,840 Speaker 14: looking back at the past is not going to change 497 00:27:59,840 --> 00:28:01,800 Speaker 14: the present. It can certainly sour it. 498 00:28:02,400 --> 00:28:03,720 Speaker 1: But you know, look at South Korea. 499 00:28:03,760 --> 00:28:09,520 Speaker 14: It's grew one point three percent quarter last time, much 500 00:28:09,640 --> 00:28:12,680 Speaker 14: higher than they expected. They were only expecting point five. 501 00:28:13,119 --> 00:28:16,439 Speaker 14: And you know, exports are forty two percent of gross 502 00:28:16,440 --> 00:28:20,439 Speaker 14: domestic product. In Japan it's about around twenty one percent 503 00:28:20,480 --> 00:28:24,040 Speaker 14: depending on the ear you're looking at. So it's slightly 504 00:28:24,080 --> 00:28:28,560 Speaker 14: different positions, but both need exports. And right now, with 505 00:28:28,680 --> 00:28:32,480 Speaker 14: you know the mean streets coming in terms of economic activity, 506 00:28:33,440 --> 00:28:36,680 Speaker 14: these countries have to keep a practical eye out for jobs. 507 00:28:37,040 --> 00:28:39,960 Speaker 14: You know, the questions about inflation, and as I said, 508 00:28:40,000 --> 00:28:43,680 Speaker 14: you know, these are two leaders who desperately need some wins. 509 00:28:44,480 --> 00:28:47,040 Speaker 14: You'll note that Chi Jinping is not going He's sending 510 00:28:47,080 --> 00:28:50,680 Speaker 14: his premiere to deal with this, but the two leaders 511 00:28:50,680 --> 00:28:54,360 Speaker 14: are going there obviously trying to bolster their leadership credentials, 512 00:28:54,400 --> 00:28:57,719 Speaker 14: so they're in a slightly weaker position. But you know, 513 00:28:57,800 --> 00:29:00,080 Speaker 14: China so far hasn't been putting the screws to and 514 00:29:00,160 --> 00:29:01,000 Speaker 14: they just said, look. 515 00:29:00,880 --> 00:29:03,240 Speaker 3: Let's trade heiner As you know, each of these three 516 00:29:03,280 --> 00:29:06,800 Speaker 3: countries are heavily reliant on the importation of crude oil 517 00:29:06,880 --> 00:29:09,720 Speaker 3: to power their energy needs. And I'm wondering whether you 518 00:29:09,800 --> 00:29:13,960 Speaker 3: consider the amount of Iranian crude oil entering China, or 519 00:29:13,960 --> 00:29:17,440 Speaker 3: whether we're talking about the degree to which sanctions have 520 00:29:17,600 --> 00:29:21,920 Speaker 3: limited the exportation of oil out of Russia. I'm wondering, 521 00:29:22,000 --> 00:29:24,960 Speaker 3: is there a commonality here when it comes to the 522 00:29:25,000 --> 00:29:25,880 Speaker 3: topic of energy. 523 00:29:26,120 --> 00:29:27,040 Speaker 1: Well, there is. 524 00:29:27,080 --> 00:29:29,720 Speaker 14: I mean it's not much talked about, but both South 525 00:29:29,800 --> 00:29:32,680 Speaker 14: Korea and Japan are still getting Russian oil and gas 526 00:29:32,720 --> 00:29:36,200 Speaker 14: and things like this. They're not willing to sacrifice to 527 00:29:36,240 --> 00:29:39,240 Speaker 14: their economies the way that Germany was by cutting off 528 00:29:39,880 --> 00:29:42,680 Speaker 14: the cheap gas that was coming in, and you know, 529 00:29:42,920 --> 00:29:45,760 Speaker 14: they're going to take a kind of a realistic look 530 00:29:45,880 --> 00:29:48,560 Speaker 14: at this. China, on the other hand, has a slightly 531 00:29:48,600 --> 00:29:52,120 Speaker 14: different situation. I mean, everyone talks about China somehow blockading 532 00:29:52,160 --> 00:29:56,000 Speaker 14: the South China seas or Taiwan Straits. I don't put 533 00:29:56,080 --> 00:29:59,400 Speaker 14: much crehdenence in that because that would cut off eighty 534 00:29:59,440 --> 00:30:03,200 Speaker 14: percent of their oil imports just and forty percent of 535 00:30:03,200 --> 00:30:05,440 Speaker 14: their economy because it wouldn't be able to send things out. 536 00:30:05,880 --> 00:30:09,440 Speaker 14: It's not very practical, you know, you'd be slicing your 537 00:30:09,440 --> 00:30:13,840 Speaker 14: own throat to make a point. Not something that very 538 00:30:13,880 --> 00:30:17,800 Speaker 14: pragmatic China is going to do. So this issue about 539 00:30:17,840 --> 00:30:20,360 Speaker 14: access to oil, at least on that part, is not 540 00:30:20,400 --> 00:30:23,640 Speaker 14: going to be an issue. The Huthi's Red Sea that 541 00:30:23,760 --> 00:30:27,240 Speaker 14: affects some of it, but you're seeing that oil is fungible. 542 00:30:27,320 --> 00:30:29,880 Speaker 14: It kind of moves from market to market. 543 00:30:29,960 --> 00:30:30,120 Speaker 13: You know. 544 00:30:30,200 --> 00:30:34,280 Speaker 14: For instance, Indian is now the largest purchaser of Russian oil, 545 00:30:34,360 --> 00:30:38,440 Speaker 14: which eventually makes it way where to Europe, unfortunately at 546 00:30:38,480 --> 00:30:41,480 Speaker 14: a higher cost, which is adding to inflation and also 547 00:30:42,000 --> 00:30:46,000 Speaker 14: affecting competitiveness of industries there to reliant on energy. 548 00:30:46,240 --> 00:30:49,880 Speaker 3: He is Einer Tongan from the Taia Institute speaking with 549 00:30:50,000 --> 00:30:53,200 Speaker 3: us earlier on day Breakasion. Now let's bring in John Hirskowitz, 550 00:30:53,480 --> 00:30:56,840 Speaker 3: Bloomberg East Asia Government editor, who joins us from the 551 00:30:56,880 --> 00:31:00,239 Speaker 3: Japanese capital. So a two day summit in souls On 552 00:31:00,360 --> 00:31:04,640 Speaker 3: it's high level, Japan, South Korea, China all involved. Typically 553 00:31:04,680 --> 00:31:08,960 Speaker 3: when meetings like this happen at high levels, there are deliverables. 554 00:31:09,120 --> 00:31:12,520 Speaker 3: Should we be looking at specific areas where we would 555 00:31:12,600 --> 00:31:14,680 Speaker 3: most likely see some sort of agreement. 556 00:31:15,600 --> 00:31:17,760 Speaker 8: Well, I think that the main thing for this is 557 00:31:17,760 --> 00:31:20,320 Speaker 8: that they're actually meeting. The last some of that they 558 00:31:20,360 --> 00:31:23,000 Speaker 8: did this was twenty nineteen, and there have been so 559 00:31:23,120 --> 00:31:26,320 Speaker 8: many changes in Asia in that time, in the global 560 00:31:26,320 --> 00:31:29,800 Speaker 8: economy in that time. But we're going to see some deliverables. 561 00:31:29,880 --> 00:31:33,920 Speaker 8: We've had some talk about like discussing trade, people to 562 00:31:33,960 --> 00:31:39,240 Speaker 8: people exchanges, looking at some sort of joint statement for cooperation. 563 00:31:39,840 --> 00:31:41,840 Speaker 8: But I don't think we're going to get anything really 564 00:31:42,120 --> 00:31:46,000 Speaker 8: in the nitty gritty, anything significant. But we're going to 565 00:31:46,040 --> 00:31:50,320 Speaker 8: get something, some sort of statements, some sorts of agreements 566 00:31:50,440 --> 00:31:52,840 Speaker 8: that are going to show that there's progress, that this 567 00:31:52,920 --> 00:31:54,680 Speaker 8: meeting resulted in something. 568 00:31:55,200 --> 00:31:59,080 Speaker 13: John, we heard from einor Tangin earlier about supposed pressure. 569 00:31:59,080 --> 00:32:02,000 Speaker 13: I'm curious, is the US putting pressure on Japan and 570 00:32:02,080 --> 00:32:06,080 Speaker 13: South Korea here to confront China or is this happening organically. 571 00:32:07,440 --> 00:32:11,680 Speaker 8: Yeah, the US is supporting both Japan and South Korea 572 00:32:11,720 --> 00:32:15,280 Speaker 8: and having talks with China. I don't think the pressure 573 00:32:15,400 --> 00:32:18,680 Speaker 8: that has come on Tokyo and Seoul has been to 574 00:32:19,000 --> 00:32:24,960 Speaker 8: cooperate with Biden Biden administration initiatives on things like exports 575 00:32:24,960 --> 00:32:30,120 Speaker 8: of high tech to China, chip technology, things that are 576 00:32:30,120 --> 00:32:34,360 Speaker 8: trying to keep the US pre eminence and its partner's 577 00:32:34,400 --> 00:32:39,000 Speaker 8: pre eminence in high tech gear and equipment. In terms 578 00:32:39,040 --> 00:32:41,720 Speaker 8: of like actual pressure for confronting China, I don't think 579 00:32:41,760 --> 00:32:43,760 Speaker 8: that we're going to find that specifically in the meeting. 580 00:32:44,000 --> 00:32:47,760 Speaker 8: But the US is such a concerned party that what 581 00:32:47,880 --> 00:32:50,560 Speaker 8: they have to say will probably have been convened many 582 00:32:50,600 --> 00:32:54,080 Speaker 8: times over to both Tokyo and Seoul before they have 583 00:32:54,200 --> 00:32:57,040 Speaker 8: this sit down with the premiere of China. 584 00:32:57,480 --> 00:33:00,560 Speaker 3: We know that both South Korea and Japan have or 585 00:33:00,600 --> 00:33:03,760 Speaker 3: are supporting the US export controls when it comes to 586 00:33:04,360 --> 00:33:10,120 Speaker 3: high end semiconductor manufacturing into equipment into China. These countries 587 00:33:10,160 --> 00:33:13,640 Speaker 3: are so dependent on trade with China. Is there a 588 00:33:13,720 --> 00:33:16,800 Speaker 3: way that they can kind of embrace that relationship and 589 00:33:16,840 --> 00:33:19,640 Speaker 3: I'm talking about the Chinese relationship with both Japan and 590 00:33:19,680 --> 00:33:24,280 Speaker 3: South Korea without allowing this high tech issue to kind 591 00:33:24,320 --> 00:33:26,600 Speaker 3: of enter into the conversation or do you think that's 592 00:33:26,640 --> 00:33:27,440 Speaker 3: going to be central. 593 00:33:29,040 --> 00:33:32,280 Speaker 8: It's a balancing act that Japan and South Korea have 594 00:33:32,360 --> 00:33:36,520 Speaker 8: had for years decades that their biggest trading partner has 595 00:33:36,560 --> 00:33:40,719 Speaker 8: both been China and their biggest security partner is the US. 596 00:33:41,000 --> 00:33:45,560 Speaker 8: So they've found ways to work both sides to keep 597 00:33:45,600 --> 00:33:48,520 Speaker 8: the trade with China on as even a kil as 598 00:33:48,560 --> 00:33:53,360 Speaker 8: possible and keep its relationship with the US strong. But 599 00:33:53,440 --> 00:33:56,320 Speaker 8: what we've seen in recent years is that the pace 600 00:33:56,360 --> 00:33:59,680 Speaker 8: of investment from Japan and South Korea into China has 601 00:33:59,720 --> 00:34:03,360 Speaker 8: slowed and trade with the US has picked up. So 602 00:34:03,640 --> 00:34:08,360 Speaker 8: we're seeing incentives for Japanese companies, South Korean companies in 603 00:34:08,480 --> 00:34:11,440 Speaker 8: various states to move in set up facilities, and we're 604 00:34:11,440 --> 00:34:15,120 Speaker 8: seeing more and more of this investment coming. And the 605 00:34:15,200 --> 00:34:19,120 Speaker 8: importance of China and China still dominates the trade for 606 00:34:19,160 --> 00:34:23,080 Speaker 8: these two countries, but it's been slightly diminishing over the 607 00:34:23,080 --> 00:34:24,560 Speaker 8: past couple of years. 608 00:34:25,719 --> 00:34:29,279 Speaker 13: So trade is obviously very central to these talks. What 609 00:34:29,400 --> 00:34:35,160 Speaker 13: about concern about North Korea and its military cooperation with Russia. 610 00:34:36,239 --> 00:34:41,640 Speaker 8: Yeah, we're seeing the Japan South Korea has been in 611 00:34:41,760 --> 00:34:44,960 Speaker 8: locks up with the US in their concerns about North Korea. 612 00:34:45,239 --> 00:34:48,560 Speaker 8: They've all made the allegations of North Korea sending arms 613 00:34:48,600 --> 00:34:54,600 Speaker 8: to Russia, millions of rounds of munitions, missiles, and the 614 00:34:54,680 --> 00:34:58,720 Speaker 8: government of the US has shown satellite pictures of these 615 00:34:58,880 --> 00:35:03,800 Speaker 8: transfers of equipment from North Korea into Russia, showing trains 616 00:35:03,840 --> 00:35:07,640 Speaker 8: going over to the front lines near Ukraine. But China 617 00:35:08,080 --> 00:35:12,040 Speaker 8: has asked for a bit more measured tone. They've said 618 00:35:12,080 --> 00:35:16,000 Speaker 8: the burden for a peace and stability on the Korean 619 00:35:16,040 --> 00:35:19,120 Speaker 8: Peninsula should lie with the US and its partners. But 620 00:35:19,480 --> 00:35:25,640 Speaker 8: China is North Korea's biggest economic benefactor for years and years. Washington, Seoul, 621 00:35:25,719 --> 00:35:28,560 Speaker 8: and Tokyo would all like to see China play a 622 00:35:28,600 --> 00:35:31,560 Speaker 8: greater role in reigning in Kim Jong un and his 623 00:35:31,640 --> 00:35:34,360 Speaker 8: nuclear ambitions, and this will be a part of the conversation. 624 00:35:34,719 --> 00:35:37,799 Speaker 8: But this has been an ongoing conversation. So I don't 625 00:35:37,840 --> 00:35:40,440 Speaker 8: think we're going to see huge amounts of headway when 626 00:35:40,480 --> 00:35:41,440 Speaker 8: it comes to North Korea. 627 00:35:41,520 --> 00:35:44,040 Speaker 3: When I think about the politics of the APAC region 628 00:35:44,120 --> 00:35:46,960 Speaker 3: and I think about where that intersects trade, I think 629 00:35:46,960 --> 00:35:49,360 Speaker 3: of the South China Sea. This is obviously going to 630 00:35:49,360 --> 00:35:50,600 Speaker 3: be up for discussion, is it not. 631 00:35:51,560 --> 00:35:54,839 Speaker 8: I believe so. In Japan, more so than South Korea 632 00:35:54,880 --> 00:35:58,560 Speaker 8: has expressed its concerns about what it sees as Chinese 633 00:35:58,560 --> 00:36:01,880 Speaker 8: assertiveness in the South China. South Korea has been a 634 00:36:01,880 --> 00:36:07,520 Speaker 8: little bit more tepe it in its statements regarding the issue, 635 00:36:07,760 --> 00:36:10,399 Speaker 8: and this will be a subject of concern. But also 636 00:36:10,560 --> 00:36:14,879 Speaker 8: China has its concerns with the Yellow Sea. It has 637 00:36:15,040 --> 00:36:17,879 Speaker 8: a great deal of its naval forces in the Yellow Sea, 638 00:36:18,320 --> 00:36:22,800 Speaker 8: where the US and South Korea could exert its naval 639 00:36:22,840 --> 00:36:26,840 Speaker 8: influence and in theory bottle up a lot of Chinese 640 00:36:27,040 --> 00:36:31,799 Speaker 8: naval forces. So there's a little bit of China has 641 00:36:31,840 --> 00:36:35,360 Speaker 8: its attention in some areas. The South China Sea is 642 00:36:35,360 --> 00:36:37,960 Speaker 8: a huge issue as well. The Yellow Sea may come 643 00:36:38,000 --> 00:36:40,799 Speaker 8: into focus. It's been a subject of China's concerns for 644 00:36:40,840 --> 00:36:41,120 Speaker 8: a bit. 645 00:36:41,400 --> 00:36:43,399 Speaker 13: We have to remember it was not that long ago 646 00:36:43,600 --> 00:36:48,200 Speaker 13: that China whipped up the nationalistic fervor and boycotting various 647 00:36:48,200 --> 00:36:52,720 Speaker 13: products from bout Japan and South Korea. I think none 648 00:36:52,719 --> 00:36:56,239 Speaker 13: of these countries is an easy partner of any of the. 649 00:36:56,200 --> 00:37:00,560 Speaker 8: Others, exactly. The nationalists river can get whipped up from 650 00:37:00,560 --> 00:37:05,759 Speaker 8: time to time. We're seeing it a bit with Japan's 651 00:37:05,800 --> 00:37:10,439 Speaker 8: discharge of treated water from the Fukushima nuclear reactor. This 652 00:37:10,520 --> 00:37:14,640 Speaker 8: is from the twenty eleven Tsunamia nuclear disaster. Japan is 653 00:37:14,680 --> 00:37:17,400 Speaker 8: going to see if you can raise the issue of 654 00:37:17,480 --> 00:37:20,320 Speaker 8: Chinese bands of imports of some of its food products, 655 00:37:20,320 --> 00:37:24,960 Speaker 8: seafood products related to the Fukushima disaster. But there are 656 00:37:25,080 --> 00:37:30,520 Speaker 8: sentiments dating back into history which do get stoked for 657 00:37:31,040 --> 00:37:34,680 Speaker 8: political purposes. The ones between Japan and South Korea have 658 00:37:34,719 --> 00:37:38,680 Speaker 8: cooled down a little bit, but the Fukushima incident is 659 00:37:38,680 --> 00:37:41,840 Speaker 8: something that is of concern in South Korea and even 660 00:37:41,880 --> 00:37:42,960 Speaker 8: more so in China. 661 00:37:43,080 --> 00:37:45,080 Speaker 3: John, thank you so much for joining us and helping 662 00:37:45,120 --> 00:37:46,880 Speaker 3: us set up this two days some that will be 663 00:37:46,920 --> 00:37:49,640 Speaker 3: taking place in Seoul in the week ahead where top 664 00:37:49,640 --> 00:37:53,360 Speaker 3: officials from Japan, South Korea and China will be meeting. 665 00:37:53,400 --> 00:37:57,719 Speaker 3: He is John Harskowitz, Bloomberg East Asia Government Editor. I'm 666 00:37:57,760 --> 00:38:01,680 Speaker 3: Doug Krisner. You can join Brian Curtis and myself weekdays 667 00:38:01,680 --> 00:38:04,759 Speaker 3: here for Daybreak Asia beginning at eight am in Hong 668 00:38:04,880 --> 00:38:07,760 Speaker 3: Kong eight pm on Wall Street. Tom. 669 00:38:08,120 --> 00:38:10,600 Speaker 1: Thank you Doug, and thank you Brian. And that does 670 00:38:10,640 --> 00:38:13,160 Speaker 1: it for this edition of Bloomberg day Break Weekend. Join 671 00:38:13,239 --> 00:38:15,480 Speaker 1: us again Monday morning at five am Wall Street time 672 00:38:15,520 --> 00:38:17,880 Speaker 1: for the latest on markets overseas and the news you 673 00:38:18,000 --> 00:38:21,160 Speaker 1: need to start your day, I'm Tom Buzzby. Stay with us. 674 00:38:21,400 --> 00:38:24,359 Speaker 1: Top stories and global business headlines are coming up right 675 00:38:24,400 --> 00:38:24,680 Speaker 1: now