WEBVTT - Fed's Bullard Resigns, FTC Seeks MSFT-ATVI Deal Pause

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<v Speaker 1>Good morning. I'm Doug Krisner and I'm Brian Curtiz. Here

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<v Speaker 1>are the stories we're following today. Saint Louis FED President

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<v Speaker 1>Jim Bullard has stepped down from his post as head

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<v Speaker 1>of the bank effective today. Bullard said that he would

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<v Speaker 1>fully depart on August fourteenth to become the inaugural dean

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<v Speaker 1>of Produced Business School. Wellard, who doesn't vote on rates,

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<v Speaker 1>this year, has been seen as a bellweather because his

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<v Speaker 1>views have sometimes foreshadowed FED policy changes. We heard earlier

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<v Speaker 1>from Bloomberg's Kathleen Hayes.

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<v Speaker 2>Coming out of the pandemic, Jim was one of the

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<v Speaker 2>first people who made it clear that the FED was

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<v Speaker 2>going to have to get much more aggressive. He was

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<v Speaker 2>the one one of the first to start talking about

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<v Speaker 2>needing to front load interest rate hikes.

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<v Speaker 3>I'm going to have to move more.

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<v Speaker 2>Going to have to move faster, rates are going to

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<v Speaker 2>have to be higher, and continuing to push in that direction.

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<v Speaker 2>He obviously, in the end isn't the only one. But again,

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<v Speaker 2>Jim has been I think a big monetary policy thinker,

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<v Speaker 2>and in terms of actual policy steps, he has been

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<v Speaker 2>a major for all the.

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<v Speaker 1>Saint Louis FED said that Bullard will remain at the

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<v Speaker 1>Bank in an advisory capacity over the next month. The

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<v Speaker 1>Bank also said that Bullard has recused himself from his

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<v Speaker 1>monetary policy role and also other related duties, and he

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<v Speaker 1>has ceased all public speaking.

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<v Speaker 4>Well.

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<v Speaker 5>A court ruling today that is being widely hailed as

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<v Speaker 5>a victory for the crypto industry and that story from

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<v Speaker 5>Bloomberg's and Kates.

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<v Speaker 3>A federal judge has ruled that a Ripple Lab's token

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<v Speaker 3>is a security when sold to institutional investors, but not

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<v Speaker 3>the general public. The Securities and Exchange Commission has been

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<v Speaker 3>aggressively targeting crypto firms for allegedly selling unregistered securities. Whether

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<v Speaker 3>cryptocurrencies are securities had long been a major question hanging

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<v Speaker 3>over the industry, which has argued it is not subject

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<v Speaker 3>to the jurisdiction of the sec and other regulators in

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<v Speaker 3>Washington and Kate's Bloomberg day Break Asia all Right.

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<v Speaker 1>The US Federal Trade Commission has asked a California judge

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<v Speaker 1>to temporarily block Microsoft from closing on its deal at

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<v Speaker 1>sixty nine billion dollar takeover of Activision Blizzard, and it

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<v Speaker 1>comes as the Agency of pearls a lower court ruling

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<v Speaker 1>that greenlighted the deal in the US. The ruling had

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<v Speaker 1>found that the deal would not thwart competition in the

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<v Speaker 1>markets for gaming, and it would also not harm consumers.

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<v Speaker 1>But the former FTC chair, William Kovacik, tells US that

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<v Speaker 1>the regulator concerns over the deal aren't going away anytime soon.

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<v Speaker 6>As organizations and institutions of this kind grow and grow dramatically,

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<v Speaker 6>you start to wonder whether they become manageable even on

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<v Speaker 6>their own terms. That is, to what extent do the

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<v Speaker 6>managers of the large enterprises as they grow, as they

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<v Speaker 6>move quickly, are they fully able to manage effectively what

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<v Speaker 6>they're doing even with the best based efforts to manage effectively.

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<v Speaker 1>That's William Kavasik, a former chair of the FTC. The

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<v Speaker 1>FTC said that it would it would seek emergency action

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<v Speaker 1>by the Ninth Circuit Court to stop the Microsoft deal

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<v Speaker 1>from closing, as if its request to pause the deal

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<v Speaker 1>is denied. Barring court act, Microsoft and Activision can complete

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<v Speaker 1>the deal. As of eleven fifty nine pm in San

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<v Speaker 1>Francisco on July fourteenth.

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<v Speaker 5>Well US Treasury Secretary Janet Yellen is traveling to India

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<v Speaker 5>and Vietnam next week with a goal of strengthening some

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<v Speaker 5>economic ties. Yellen will first head to India for a

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<v Speaker 5>meeting of G twenty finance ministers and central bankers. Now,

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<v Speaker 5>the US Treasury says that Yellen will be pushing for

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<v Speaker 5>reforming global engzing institutions to boost their scope of their firepower. Basically,

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<v Speaker 5>Yellen is also going to be looking to advance talks

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<v Speaker 5>on easing the burden of debt in poorer nations. Up next,

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<v Speaker 5>after India, it's onto Vietnam, where she will be meeting

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<v Speaker 5>with senior government officials and private businesses currency and trade.

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<v Speaker 5>While those will be among the topics for discussion, the

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<v Speaker 5>stated goals of the trip pretty simple. Improving ties with

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<v Speaker 5>both India and Vietnam. The less obvious goal well perhaps

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<v Speaker 5>smoothing the path of those supply chains away from China.

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<v Speaker 1>And China is taking a friendlier approach now towards artificial intelligence.

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<v Speaker 1>That story from Bloomberg's Joan Wong.

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<v Speaker 7>China has loosened some of the guardrails that proposed for

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<v Speaker 7>chat GPT like surfaces. Some twenty four guidelines have just

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<v Speaker 7>been finalized, though go into effect on August fifteenth. They

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<v Speaker 7>suggest more flexible regulation than in the initial draft back

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<v Speaker 7>in April. The document is the products of months of

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<v Speaker 7>consultation between the government and the industry. The hope is

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<v Speaker 7>to ease concerns over who takes responsibility for governing AI

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<v Speaker 7>content on the platforms. The revised rules seem to balance

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<v Speaker 7>that responsibility between the regulators and the platform operators. The

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<v Speaker 7>goal is to regulate AI but not stunnest development in

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<v Speaker 7>Hong Kong. I joined Wong Bloomberg Day Brigasia.

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<v Speaker 1>I'm Brian Curtis in Hong Kong along with Doug Prisner

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<v Speaker 1>in New York. And Doug we have two major developments

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<v Speaker 1>here stoking gains in risk assets. We've talked about this

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<v Speaker 1>more benign inflation readings that we've seen of late in

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<v Speaker 1>the past few days in the US, and then also

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<v Speaker 1>Chinese policymakers clearly reaching out to the private sector. Both

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<v Speaker 1>of these trends can be fickle, but at the moment

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<v Speaker 1>the green light is flashing.

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<v Speaker 5>Most definitely here in the States. One of the things

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<v Speaker 5>that it has produced a much weaker dollar. I think

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<v Speaker 5>for the four days that we have had of dollar trading,

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<v Speaker 5>we're down about two point eight percent. If you look

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<v Speaker 5>at the Bloomberg dollar spot index. Later today in China,

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<v Speaker 5>this is going to be very interesting. There's going to

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<v Speaker 5>be a press conference at ten am Beijing time, hosted

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<v Speaker 5>by Deputy Governor of the PBOC Luk Wao Chung. Basically,

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<v Speaker 5>it's going to be a look at a look at

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<v Speaker 5>some of the financial data that we have seen for

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<v Speaker 5>China in the first half of the year. Now we

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<v Speaker 5>know there have been a number of challenges. All you

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<v Speaker 5>have to do is to look at the trade data

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<v Speaker 5>that we had yesterday, a twelve point four percent decline

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<v Speaker 5>in exports for the month of June. Brian, you and

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<v Speaker 5>I have talked about the disinflationary or deflationary trend when

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<v Speaker 5>it comes to factory gate inflation in China. So based

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<v Speaker 5>on a lot of the data that we've been looking at,

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<v Speaker 5>there is a lot to be concerned about Bloomberg economics.

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<v Speaker 5>I think I pointed this out earlier as expecting Beijing

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<v Speaker 5>to do a lot more in terms of recharging growth.

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<v Speaker 1>The way the market is looking at this, Doug is

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<v Speaker 1>not so much the data, and not so much even

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<v Speaker 1>you know, the ins and outs of the stimulus. It's

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<v Speaker 1>really more the approach of policymakers. You asked me a

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<v Speaker 1>couple of days ago, and I said, well, it really

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<v Speaker 1>does seem to have the policymakers approach seems to have changed.

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<v Speaker 1>It's a much different attitude. It's like all of a

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<v Speaker 1>sudden the light went on that the way that they

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<v Speaker 1>can get the animal spirits back is to stimulate the

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<v Speaker 1>private sector. So we've seen a number of these developments

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<v Speaker 1>who today we talk about balancing the approach to AI

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<v Speaker 1>regulations that it's a little bit friendlier. We talked about

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<v Speaker 1>the meeting between the premiere and the big tech companies

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<v Speaker 1>and the relaxing or the loosening of some of the

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<v Speaker 1>payback restrictions on property developers. It's more about the approach,

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<v Speaker 1>which then it is the actual data here at the moment.

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<v Speaker 1>That's why you had bad data yesterday. But look at

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<v Speaker 1>the CSI three hundred is up one point four percent.

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<v Speaker 1>The Hangksng Tech index was up three point eight percent.

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<v Speaker 1>This is what investors are really feasting on.

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<v Speaker 5>So perhaps it's a combination of both I hope for

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<v Speaker 5>more stimulus and un understanding now that Beijing has come

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<v Speaker 5>to the realization that the entrepreneurial class really needs to

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<v Speaker 5>be embraced if you're going to recover an economy.

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<v Speaker 1>Absolutely it sets up well, but as I mentioned, it's fickle.

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<v Speaker 1>We don't know. We've got fed speak out there that's

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<v Speaker 1>still very hawkish, But I think the market, the way

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<v Speaker 1>the market's looking at that, perhaps you agree, is well,

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<v Speaker 1>we expect them to do this for now.

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<v Speaker 5>Perhaps perhaps I think one of the things that's going

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<v Speaker 5>to be very interesting going forward here in the US

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<v Speaker 5>is what we hear tomorrow from some of the big

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<v Speaker 5>banks right the degree to which they're going to be

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<v Speaker 5>positive or not on the trajectory for the American economy,

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<v Speaker 5>because one of the things I think the data show

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<v Speaker 5>in on the trade side for China, the recovery in

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<v Speaker 5>the global economy, as tricky as it's been right now,

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<v Speaker 5>if it's not there in a robust form, it's going

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<v Speaker 5>to be even more difficult for China to recover, don't

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<v Speaker 5>you think?

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<v Speaker 8>Yeah?

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<v Speaker 1>Absolutely, And we can put a lot of this Nancy Davis,

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<v Speaker 1>Who've got her coming up in a few moments. Nancy

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<v Speaker 1>Davis's founder in CIO at Quadratic Capital Management. Now it's

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<v Speaker 1>time for global news. Actors and performers have decided to

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<v Speaker 1>join writers on strike, saying it's an issue that will

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<v Speaker 1>affect all elements of US labor that Baxter has Global

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<v Speaker 1>News from the nine to sixty News from in San Francisco.

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<v Speaker 9>Ed, Yeah, they make it a societal issue for sure,

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<v Speaker 9>Bri and they go out tonight. The two main issues

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<v Speaker 9>sided by union lead negotiator Duncan Crabtree Ireland streaming and

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<v Speaker 9>AI actors.

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<v Speaker 10>Deserve a contract that reflects the changes that have taken

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<v Speaker 10>place in the industry. Unfortunately, the current streaming model has

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<v Speaker 10>undercut performers residual income and high inflation has further reduced

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<v Speaker 10>our members' ability to make ends meet.

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<v Speaker 9>Now SAG after President Franz Rusher says they had no choice.

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<v Speaker 4>If we don't stand tall right now, we are all

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<v Speaker 4>going to be in trouble, we are all going to

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<v Speaker 4>be in jeopardy of being replaced by machines.

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<v Speaker 9>Dresher says this is important in every field in society

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<v Speaker 9>because what's being done to them will be done in

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<v Speaker 9>all fields of labor, AI and automation. This action will

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<v Speaker 9>shut down most all productions. Some game shows, reality shows

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<v Speaker 9>have been able to go on, but this well should

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<v Speaker 9>dent them as well. China has issues has issued a

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<v Speaker 9>statement telling the US and it needs to stabilize ties

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<v Speaker 9>after meeting between Wang Yi and US Secretary of State

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<v Speaker 9>Anthony Blink and China. Statement says the US needs to

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<v Speaker 9>stop suppressing China's economic, trade, and technology development. Wang also

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<v Speaker 9>urged the US to end sanctions against China and says

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<v Speaker 9>channels of communication should be broadened. The statement also reiterated

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<v Speaker 9>china stance over Taiwan Now. The US statement specifically aimed

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<v Speaker 9>at the alleged China hacking of government offices, including the

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<v Speaker 9>State Department and the State Department Secretary of Commerce office,

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<v Speaker 9>and other businesses using Microsoft business software impacted by that hack.

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<v Speaker 9>White House spokesman John Kirby says the government did act swiftly.

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<v Speaker 11>We took it very very seriously, and we took actions

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<v Speaker 11>immediately after to try to mitigate the effects of it.

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<v Speaker 11>We're obviously taking a fresh look at our systems and

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<v Speaker 11>our cloud computing capabilities to make sure we can be

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<v Speaker 11>more resilient in the future.

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<v Speaker 9>He says systems are now secure. US President Joe Biden

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<v Speaker 9>says Russia cannot sustain years of war in Ukraine. Biden

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<v Speaker 9>says it is taking extraordinary economic and political toll on Russia.

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<v Speaker 12>What agreement is ultimately reached. Depends upon pud and what

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<v Speaker 12>he decides to do, But there is no possibility of

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<v Speaker 12>him winning the war in Ukraine, and he's already lost that.

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<v Speaker 9>War, he says, for two reasons. One, Russia cannot maintain

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<v Speaker 9>resources to go on fighting.

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<v Speaker 12>Number Two, I think that there is going to be

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<v Speaker 12>a circumstance where eventually prison Food is going to decide

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<v Speaker 12>it's not an interest of Russia economically, politically, or otherwise

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<v Speaker 12>to continue this war.

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<v Speaker 9>Biden says, when the war is over, Ukraine will enter NATO.

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<v Speaker 8>Oh.

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<v Speaker 9>By the way, Biden had an off the cuff suggestion

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<v Speaker 9>for Wagner Group, a chief progotion quote, I'd be careful

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<v Speaker 9>what I ate. Global News powered by more than twenty

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<v Speaker 9>seven hundred journalist and analysts in over one hundred twenty countries.

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<v Speaker 9>In San Francisco, I'm Ed Baxter, and this is Bloomberg.

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<v Speaker 1>I'm Brian Curtesy in Hong Kong, along with Doug Prisner

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<v Speaker 1>in New York. Our guest is Nancy Davis, founder in

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<v Speaker 1>CIO at Quadratic Capital Management. Nancy, thank you very much

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<v Speaker 1>for joining us. One of the bullish trends that we've

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<v Speaker 1>seen here just of late is that inflation is coming

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<v Speaker 1>down while wages tick up, and that is strengthening consumer

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<v Speaker 1>buying power. How does that work its way into the

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<v Speaker 1>bond market and your approach.

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<v Speaker 8>Well, definitely, the inflation expectations have been hugging two percent

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<v Speaker 8>in the future for quite a while. We're having realized

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<v Speaker 8>CPI data come in lower with the PPI this morning

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<v Speaker 8>and the CPI print yesterday at three percent, so but

0:12:16.000 --> 0:12:19.920
<v Speaker 8>still future inflation expectations are all right around the two

0:12:20.000 --> 0:12:23.320
<v Speaker 8>percent level when you're looking at break events. So we

0:12:23.400 --> 0:12:27.560
<v Speaker 8>do think the market is really pricing in this two

0:12:27.600 --> 0:12:31.959
<v Speaker 8>percent level, and inflation protected bonds actually look pretty attractive

0:12:32.040 --> 0:12:35.320
<v Speaker 8>right now because the real yield that you can get,

0:12:35.400 --> 0:12:38.160
<v Speaker 8>so that's a yield beyond inflation. For instance, on a

0:12:38.200 --> 0:12:42.320
<v Speaker 8>five year inflation link bond some of one nine percent

0:12:42.520 --> 0:12:46.800
<v Speaker 8>of real yield, So higher real yields has really hurt

0:12:46.840 --> 0:12:49.720
<v Speaker 8>the tips market. You saw that in twenty twenty two.

0:12:49.800 --> 0:12:52.480
<v Speaker 8>In this year, we do think it's an interesting time

0:12:52.520 --> 0:12:55.760
<v Speaker 8>for investors to say, look, you know, the data has

0:12:55.840 --> 0:12:58.439
<v Speaker 8>been strong, but the said, you know, are the raid

0:12:58.480 --> 0:13:01.880
<v Speaker 8>hikes really working? Because even though the CPI and PPI

0:13:02.040 --> 0:13:05.160
<v Speaker 8>have been coming down, I don't know about you Doug

0:13:05.200 --> 0:13:07.480
<v Speaker 8>and Brian. But I still feel a lot of inflation

0:13:07.559 --> 0:13:10.120
<v Speaker 8>in my day to day life.

0:13:10.360 --> 0:13:10.600
<v Speaker 4>Yeah.

0:13:10.640 --> 0:13:13.000
<v Speaker 5>I mean in terms of what we learned yesterday from

0:13:13.000 --> 0:13:15.400
<v Speaker 5>that CPI print, I think we had a core rate

0:13:15.440 --> 0:13:19.520
<v Speaker 5>of what four to six and then if you look

0:13:19.520 --> 0:13:22.120
<v Speaker 5>at four eight, we look at four to six when

0:13:22.160 --> 0:13:26.440
<v Speaker 5>it's the core PCE. Here we have this idea that

0:13:26.480 --> 0:13:28.680
<v Speaker 5>there is the long and variable lag. Do you have

0:13:28.720 --> 0:13:31.760
<v Speaker 5>a sense of how much tightening has yet to be

0:13:32.040 --> 0:13:33.640
<v Speaker 5>felt by the economy.

0:13:33.280 --> 0:13:36.840
<v Speaker 8>Nancy, I think no one in twenty twenty one was

0:13:36.880 --> 0:13:40.560
<v Speaker 8>really expecting the Fed to hike you know, to five

0:13:40.679 --> 0:13:43.400
<v Speaker 8>over five percent in about a year. It was very

0:13:43.440 --> 0:13:47.679
<v Speaker 8>surprising the speed and the rate at which they hiked rates.

0:13:47.920 --> 0:13:50.080
<v Speaker 8>I think the question is is we still have you know,

0:13:50.120 --> 0:13:53.240
<v Speaker 8>to your point with four point eight core? Is it

0:13:53.320 --> 0:13:54.040
<v Speaker 8>really working?

0:13:54.320 --> 0:13:54.959
<v Speaker 3>Is it enough?

0:13:55.400 --> 0:13:58.320
<v Speaker 8>And the market The interesting thing is all markets move

0:13:58.400 --> 0:14:03.200
<v Speaker 8>off of teacher expectations, and future expectations for inflation are

0:14:03.360 --> 0:14:08.000
<v Speaker 8>well below both the PPI and the CPI. The US

0:14:08.080 --> 0:14:11.880
<v Speaker 8>yield curve is near its all time levels of inversion

0:14:12.440 --> 0:14:15.880
<v Speaker 8>since the eighties, so in the last you know, forty

0:14:15.920 --> 0:14:19.520
<v Speaker 8>plus years. You can look on your Bloomberg terminal at

0:14:19.560 --> 0:14:24.360
<v Speaker 8>the twos tens, sofur swap curve for instance, that is

0:14:24.440 --> 0:14:29.120
<v Speaker 8>currently negative one hundred and four basis points, so it's

0:14:29.240 --> 0:14:32.240
<v Speaker 8>near all time lows, even lower than it was in

0:14:32.280 --> 0:14:33.120
<v Speaker 8>the late eighties.

0:14:34.160 --> 0:14:37.000
<v Speaker 1>We were over one hundred basis points and spread between

0:14:37.000 --> 0:14:40.440
<v Speaker 1>twos and tens, and now in the eighties it's not

0:14:40.520 --> 0:14:44.160
<v Speaker 1>a lot. It's only maybe twenty basis points. But you

0:14:44.720 --> 0:14:46.520
<v Speaker 1>seem to be saying that won't continue.

0:14:46.840 --> 0:14:50.080
<v Speaker 8>Well, it's perplexing, right, because if you think about it,

0:14:50.120 --> 0:14:52.440
<v Speaker 8>you can buy a T bill, for instance, you could

0:14:52.440 --> 0:14:55.000
<v Speaker 8>buy a one month T bill and get paid you know,

0:14:55.200 --> 0:14:58.560
<v Speaker 8>five twenty five thirty, or you can lend money to

0:14:58.640 --> 0:15:02.240
<v Speaker 8>the US Treasury for ten years and get paid. Three

0:15:02.280 --> 0:15:05.040
<v Speaker 8>point seventy six right now is the current yield on

0:15:05.560 --> 0:15:08.720
<v Speaker 8>the ten year treasury. So it's a little bit bizarre.

0:15:08.760 --> 0:15:11.760
<v Speaker 8>Like normally, when you win money longer, you get paid more,

0:15:12.120 --> 0:15:14.840
<v Speaker 8>and you're actually getting a negative term premium. That's what

0:15:14.880 --> 0:15:18.560
<v Speaker 8>the inverted yield curve means. It means loaning money in

0:15:18.680 --> 0:15:22.320
<v Speaker 8>US dollars for longer you get paid less. And so

0:15:22.560 --> 0:15:26.840
<v Speaker 8>that's really the deflation disinflation that's being priced into markets.

0:15:26.880 --> 0:15:31.920
<v Speaker 8>As you and Brian Doug were talking about earlier on

0:15:31.960 --> 0:15:32.400
<v Speaker 8>the show.

0:15:32.720 --> 0:15:34.800
<v Speaker 5>You know, Brian and I were talking on the pre

0:15:34.880 --> 0:15:37.440
<v Speaker 5>show call and he reminded me to take a look

0:15:37.480 --> 0:15:40.360
<v Speaker 5>at a note today from Barry Banister over at Steefel

0:15:40.480 --> 0:15:43.240
<v Speaker 5>and mister Banister is predicting that inflation is going to

0:15:43.280 --> 0:15:47.120
<v Speaker 5>be more sticky than many are counting on, and he

0:15:47.200 --> 0:15:50.080
<v Speaker 5>is also talking about the risk of recession for twenty four.

0:15:51.520 --> 0:15:53.840
<v Speaker 5>You seem to be somewhat in that camp. I mean,

0:15:53.840 --> 0:15:57.920
<v Speaker 5>I'm sensing a little bit of defensiveness. Maybe the tactic

0:15:58.120 --> 0:16:00.480
<v Speaker 5>here is going to be a little different, But are

0:16:00.520 --> 0:16:04.040
<v Speaker 5>you adverse to taking a position long the equity market

0:16:04.120 --> 0:16:04.520
<v Speaker 5>right now?

0:16:05.000 --> 0:16:07.560
<v Speaker 8>Well, I think the position that I'm taking is more

0:16:07.600 --> 0:16:11.400
<v Speaker 8>about owning inflation protection as part of core portfolio. It's

0:16:11.440 --> 0:16:14.680
<v Speaker 8>not so much a call on the equity markets. Equities

0:16:14.720 --> 0:16:17.320
<v Speaker 8>have obviously had a pretty good year in the US

0:16:17.360 --> 0:16:21.040
<v Speaker 8>and twenty twenty three, and that's coming off of the

0:16:21.120 --> 0:16:23.680
<v Speaker 8>sixty to forty portfolio had one of the worst years

0:16:23.720 --> 0:16:27.640
<v Speaker 8>ever in twenty twenty two. Bonds of really traded sideways

0:16:27.720 --> 0:16:29.680
<v Speaker 8>for the most part. But I think the thing that

0:16:30.120 --> 0:16:32.840
<v Speaker 8>is very compelling to me is that inflation is not

0:16:33.360 --> 0:16:35.400
<v Speaker 8>it's not a trade, it's not like, do you think

0:16:35.440 --> 0:16:38.560
<v Speaker 8>it's going higher or lower. It's something we have in

0:16:38.640 --> 0:16:41.040
<v Speaker 8>our day to day lives. We live in a real world.

0:16:41.480 --> 0:16:44.440
<v Speaker 8>We have a limited amount of savings, we have hopefully

0:16:44.480 --> 0:16:47.560
<v Speaker 8>some investments, but at the end of the day, everybody

0:16:47.600 --> 0:16:51.640
<v Speaker 8>has the cost of living and exposure to real inflation.

0:16:52.240 --> 0:16:54.520
<v Speaker 8>And I think the opportunity that the market is giving

0:16:54.560 --> 0:16:59.160
<v Speaker 8>investors that inflation expectations in the future are priced right

0:16:59.200 --> 0:17:02.840
<v Speaker 8>around two and whether you think that's going higher or lower,

0:17:02.880 --> 0:17:06.480
<v Speaker 8>the market is very confident that the Fed's interest rate

0:17:06.520 --> 0:17:10.840
<v Speaker 8>hikes are going to cool future inflation expectations. And we

0:17:10.880 --> 0:17:11.640
<v Speaker 8>could talk that way.

0:17:12.200 --> 0:17:14.480
<v Speaker 1>We could talk a lot longer on this, but I

0:17:14.480 --> 0:17:18.920
<v Speaker 1>wanted to pivot quickly to China. We're seeing policymakers there

0:17:18.960 --> 0:17:22.399
<v Speaker 1>in the process of adjusting attitudes a little bit, and

0:17:22.440 --> 0:17:26.840
<v Speaker 1>they're still tweaking their approach to stimulus. Do you do

0:17:26.880 --> 0:17:28.679
<v Speaker 1>you have like a rosy view of this or a

0:17:28.760 --> 0:17:30.840
<v Speaker 1>cautious view of this, or how you assessing it.

0:17:31.160 --> 0:17:35.200
<v Speaker 8>I do think if you look at the private capital markets,

0:17:35.240 --> 0:17:38.439
<v Speaker 8>whether it's private equity, private credit, those have been very,

0:17:39.280 --> 0:17:42.639
<v Speaker 8>very good for the economy and for the credit mechanism

0:17:42.800 --> 0:17:46.879
<v Speaker 8>to translate. Policy makers whatever they're doing in interest rates

0:17:47.000 --> 0:17:50.240
<v Speaker 8>and in currencies into the real economy, and so I

0:17:50.280 --> 0:17:53.679
<v Speaker 8>do think it's very hopeful to have more capitalism in

0:17:53.720 --> 0:17:58.480
<v Speaker 8>the private markets and more extension of credit in markets

0:17:58.520 --> 0:18:01.600
<v Speaker 8>in emerging markets and China as well. So I do

0:18:01.680 --> 0:18:06.000
<v Speaker 8>think that's a positive. And I think the more policymakers

0:18:06.040 --> 0:18:10.240
<v Speaker 8>can employ, you know, the entrepreneurialism that we have with

0:18:11.080 --> 0:18:15.160
<v Speaker 8>companies and growing businesses, the better it is for everyone.

0:18:15.640 --> 0:18:18.480
<v Speaker 1>This is Bloomberg Daybreak Asia, your morning brief on the

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