WEBVTT - Tianjin, Tariffs, and Tech Stocks in Focus

0:00:02.520 --> 0:00:07.040
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

0:00:10.840 --> 0:00:14.320
<v Speaker 2>Welcome to the Bloomberg Daybreak Asia Podcast. I'm Dan Schwartzman.

0:00:14.480 --> 0:00:17.640
<v Speaker 2>Doug Chrisner is off this week, coming up the latest

0:00:17.680 --> 0:00:21.439
<v Speaker 2>developments from the Shanghai Cooperation Summit in Tianjin, China. But

0:00:21.520 --> 0:00:24.200
<v Speaker 2>we begin with the markets. On Tuesday, we'll get the

0:00:24.200 --> 0:00:27.159
<v Speaker 2>first US trading session of September, which is usually the

0:00:27.200 --> 0:00:30.320
<v Speaker 2>weakest month for stocks. From more, we hear from Michael Hartnett,

0:00:30.400 --> 0:00:33.839
<v Speaker 2>chief investment strategist at b of A Global Research. He

0:00:33.920 --> 0:00:36.840
<v Speaker 2>spoke at Bloomberg Television hosts Sherry On in April, Honk

0:00:36.920 --> 0:00:38.040
<v Speaker 2>on the Asia trade.

0:00:38.240 --> 0:00:40.120
<v Speaker 1>Really good to have you with us. Should we get

0:00:40.120 --> 0:00:42.840
<v Speaker 1>started with what to expect out of the US, because,

0:00:42.880 --> 0:00:46.360
<v Speaker 1>I mean, we are headed towards the reopen after the holidays,

0:00:46.360 --> 0:00:49.279
<v Speaker 1>but valuations have been pretty high. I mean, is this

0:00:49.560 --> 0:00:50.760
<v Speaker 1>a concern.

0:00:52.920 --> 0:00:55.920
<v Speaker 3>Yes, it is a concern. It's one of the few concerns. However,

0:00:56.120 --> 0:00:58.960
<v Speaker 3>I think people are very happy that we've seen a

0:00:59.040 --> 0:01:02.520
<v Speaker 3>turn in tariff's lower, We're seeing a turn in rates lower,

0:01:02.560 --> 0:01:07.000
<v Speaker 3>we're seeing taxation lower, and of course you've got an

0:01:07.040 --> 0:01:11.440
<v Speaker 3>incentive now for both the administration to be joined by

0:01:11.480 --> 0:01:14.760
<v Speaker 3>the Fed in creating good economic conditions in front of

0:01:14.800 --> 0:01:16.400
<v Speaker 3>the midterms next year.

0:01:16.480 --> 0:01:17.760
<v Speaker 4>So I think there's.

0:01:17.600 --> 0:01:20.600
<v Speaker 3>Still a fair bit of amentum behind the US market.

0:01:21.319 --> 0:01:23.880
<v Speaker 3>I think the difference in twenty twenty five is that

0:01:23.920 --> 0:01:27.600
<v Speaker 3>there are other stories around the world. Japan's one of them,

0:01:27.720 --> 0:01:29.840
<v Speaker 3>China is another one of them. So it's not just

0:01:29.920 --> 0:01:34.800
<v Speaker 3>a US exclusive bull story. But I think the story

0:01:34.840 --> 0:01:38.000
<v Speaker 3>in the US is still fairly intact. But you're very right.

0:01:38.040 --> 0:01:41.680
<v Speaker 3>The valuations are the one thing the longer term investors

0:01:41.720 --> 0:01:44.399
<v Speaker 3>are looking at in the US and seeing can I

0:01:44.480 --> 0:01:47.120
<v Speaker 3>really get the upside from the US that I could

0:01:47.160 --> 0:01:49.880
<v Speaker 3>get perhaps out of China or Japan going forward in

0:01:49.880 --> 0:01:51.080
<v Speaker 3>the next twelve months.

0:01:52.000 --> 0:01:54.440
<v Speaker 1>Does that also apply to the currency space as well.

0:01:54.480 --> 0:01:56.440
<v Speaker 1>We have seen the dollar now lose ground for the

0:01:56.480 --> 0:01:57.520
<v Speaker 1>last five sessions.

0:02:00.200 --> 0:02:02.640
<v Speaker 3>Yeah, Look, the dollars in a bear market and the

0:02:02.720 --> 0:02:05.880
<v Speaker 3>dollars down ten percent year to date. There are good

0:02:05.920 --> 0:02:10.520
<v Speaker 3>reasons for that. The bear market will continue. Interest rates

0:02:10.560 --> 0:02:13.240
<v Speaker 3>are going to come down in the US. You've still

0:02:13.280 --> 0:02:15.280
<v Speaker 3>got a lot of debt, a lot of deficits, You've

0:02:15.280 --> 0:02:19.640
<v Speaker 3>got a finance You've got a very radical president pursuing

0:02:19.720 --> 0:02:24.560
<v Speaker 3>quite radical, unconventional you know, policies. Some are good, some

0:02:24.600 --> 0:02:27.760
<v Speaker 3>are bad, but foreign investors have a little worry about that,

0:02:27.919 --> 0:02:30.760
<v Speaker 3>and I think that that bear market will continue. That's

0:02:30.800 --> 0:02:33.080
<v Speaker 3>why golds at an all time high. That's why silver's

0:02:33.080 --> 0:02:36.360
<v Speaker 3>at an all time high. A normal US dollar bull

0:02:36.600 --> 0:02:40.839
<v Speaker 3>bear market, you know, is down thirty forty percent. Thus far,

0:02:40.880 --> 0:02:43.120
<v Speaker 3>we're down ten percent and you've still got further to

0:02:43.120 --> 0:02:45.760
<v Speaker 3>go with a dollar going down. And of course that's

0:02:45.880 --> 0:02:50.120
<v Speaker 3>one of the reasons why in twenty twenty five international

0:02:50.160 --> 0:02:51.880
<v Speaker 3>markets have outperformed the US.

0:02:53.639 --> 0:02:57.280
<v Speaker 5>You're positive on Japan as well. What in terms of

0:02:57.320 --> 0:03:00.720
<v Speaker 5>stocks do you like there? What are you perhaps steering

0:03:00.840 --> 0:03:01.440
<v Speaker 5>clear off?

0:03:03.320 --> 0:03:04.880
<v Speaker 4>Well, I think there's interest in Japan.

0:03:04.960 --> 0:03:07.240
<v Speaker 3>I mean, I'm here at the Bank of America, you know,

0:03:07.360 --> 0:03:10.440
<v Speaker 3>Tokyo Conference, the Japan Conference. I think we've got six

0:03:10.520 --> 0:03:14.480
<v Speaker 3>hundred plus global investors here. I think eighty percent of

0:03:14.520 --> 0:03:15.720
<v Speaker 3>them are from overseas.

0:03:15.880 --> 0:03:16.760
<v Speaker 4>I think the.

0:03:16.800 --> 0:03:19.959
<v Speaker 3>Numbers up twenty twenty five percent, you know from last year.

0:03:20.000 --> 0:03:23.080
<v Speaker 3>Why are they coming to Japan, Well, a, they're looking

0:03:23.120 --> 0:03:27.680
<v Speaker 3>for an alternative from the USB. You know, the currency

0:03:27.760 --> 0:03:31.600
<v Speaker 3>is cheap. But I think there are Japanese narratives. One

0:03:31.639 --> 0:03:34.560
<v Speaker 3>is you know, the content, you know, companies, and other

0:03:34.680 --> 0:03:37.280
<v Speaker 3>is the defense industry, which is starting to grow because

0:03:37.280 --> 0:03:41.839
<v Speaker 3>of you know, US isolationism. And of course you've got

0:03:41.840 --> 0:03:45.160
<v Speaker 3>a banking industry in Japan, which you.

0:03:45.120 --> 0:03:47.440
<v Speaker 4>Know suddenly is doing well.

0:03:47.720 --> 0:03:47.960
<v Speaker 6>You know.

0:03:48.040 --> 0:03:52.160
<v Speaker 3>And even though the Japanese banks are up two hundred,

0:03:52.160 --> 0:03:54.960
<v Speaker 3>three hundred, four hundred percent from their lows three four

0:03:55.040 --> 0:03:58.280
<v Speaker 3>years ago, they're still, believe it or not, seventy percent

0:03:58.360 --> 0:04:02.360
<v Speaker 3>below where they were in the late eighties. And so

0:04:02.480 --> 0:04:05.120
<v Speaker 3>long as the Bank of Japan is behind the curve,

0:04:05.200 --> 0:04:07.000
<v Speaker 3>which it is, and so long as the Bank of

0:04:07.080 --> 0:04:09.240
<v Speaker 3>Japan is going to be forced to raise interest rates,

0:04:09.360 --> 0:04:11.920
<v Speaker 3>which it will, those bank stocks will do well. So

0:04:11.960 --> 0:04:15.320
<v Speaker 3>I think bank's content, defense are probably the three big

0:04:15.400 --> 0:04:17.560
<v Speaker 3>narratives in the Japanese market right now.

0:04:18.160 --> 0:04:20.160
<v Speaker 5>What about ships in techs in Japan?

0:04:22.200 --> 0:04:25.120
<v Speaker 3>The tech companies in Japan Again, I think that the

0:04:25.160 --> 0:04:29.279
<v Speaker 3>tech companies globally will continue to do fairly well. I

0:04:29.279 --> 0:04:32.640
<v Speaker 3>think the big focus right now, however, is China. You know,

0:04:32.680 --> 0:04:35.440
<v Speaker 3>I think in China, you know, this is the market,

0:04:35.480 --> 0:04:40.680
<v Speaker 3>the ballmarket that nobody speaks of, and it's very you know,

0:04:40.760 --> 0:04:43.719
<v Speaker 3>you arguably what we've learnt, you know, this year in

0:04:43.720 --> 0:04:46.120
<v Speaker 3>twenty twenty five or global investors have learned this year

0:04:46.120 --> 0:04:50.400
<v Speaker 3>in twenty twenty five, driven by that deep seek moment

0:04:50.520 --> 0:04:52.880
<v Speaker 3>that we had earlier on in this year, is that

0:04:52.960 --> 0:04:57.520
<v Speaker 3>you cannot be exclusively in US tech. You need to

0:04:57.600 --> 0:05:02.680
<v Speaker 3>barbel that, particularly with Chinese tech companies. But in addition,

0:05:02.720 --> 0:05:06.039
<v Speaker 3>I think there are Japanese tech companies that can also

0:05:06.120 --> 0:05:09.800
<v Speaker 3>benefit from that globalization if you like, of the tech

0:05:09.839 --> 0:05:12.480
<v Speaker 3>exposure that investors feel that they need right now.

0:05:13.800 --> 0:05:17.240
<v Speaker 1>And Michael, China is also a geopolitical story, right, I mean,

0:05:17.240 --> 0:05:20.520
<v Speaker 1>with a realignment of alliances and partnerships. You know, of

0:05:20.520 --> 0:05:22.840
<v Speaker 1>course you have a war going on in Ukraine, how

0:05:22.880 --> 0:05:25.720
<v Speaker 1>big will the defense sector be? I mean, overnight we

0:05:25.760 --> 0:05:29.520
<v Speaker 1>saw European defense chairs rallying on ideas that potentially we

0:05:29.520 --> 0:05:33.239
<v Speaker 1>could see really a detailed plan on rearmament right now,

0:05:33.320 --> 0:05:35.760
<v Speaker 1>just a headline on the Bloomberg right now that South

0:05:35.839 --> 0:05:39.039
<v Speaker 1>Korea is also going to gradually raise defense costs. It

0:05:39.040 --> 0:05:41.600
<v Speaker 1>seems to be a very global story at the moment.

0:05:42.760 --> 0:05:43.599
<v Speaker 4>Absolutely, yeah.

0:05:43.600 --> 0:05:46.520
<v Speaker 3>I mean, look, I think that for twenty thirty years,

0:05:46.520 --> 0:05:51.080
<v Speaker 3>I mean, America has really policed the world in exchange,

0:05:51.120 --> 0:05:54.680
<v Speaker 3>if you like, for savings around the world coming back

0:05:54.720 --> 0:05:58.240
<v Speaker 3>to America and buying treasuries and financing the deficit. And

0:05:58.320 --> 0:06:02.600
<v Speaker 3>I think, you know, the Trump administration you know, has

0:06:02.640 --> 0:06:06.119
<v Speaker 3>really been you know, fairly honest. I think in saying

0:06:06.120 --> 0:06:08.279
<v Speaker 3>to the rest of the world, we're no longer going

0:06:08.320 --> 0:06:12.320
<v Speaker 3>to you know, finance your security, We're no longer going

0:06:12.360 --> 0:06:15.600
<v Speaker 3>to make you you know, you know, be your defense industry.

0:06:15.640 --> 0:06:17.599
<v Speaker 3>You have to stand up on your own two feet.

0:06:17.640 --> 0:06:21.039
<v Speaker 3>And I think we saw that first in Europe, but

0:06:21.080 --> 0:06:23.960
<v Speaker 3>I think now Asia is the next leg of that

0:06:24.120 --> 0:06:27.479
<v Speaker 3>defense trade. And as I said earlier, the defense docks

0:06:27.480 --> 0:06:30.680
<v Speaker 3>in Japan are doing well. You yourself said that career. China

0:06:31.080 --> 0:06:34.640
<v Speaker 3>are sort of joining that theme, but it is now

0:06:34.680 --> 0:06:39.840
<v Speaker 3>a multi year theme. You know, America has debt problems,

0:06:39.839 --> 0:06:43.480
<v Speaker 3>it has deficit problems. It's said, we can no longer

0:06:43.880 --> 0:06:48.320
<v Speaker 3>use American tax payer money to defend your countries. You

0:06:48.400 --> 0:06:50.760
<v Speaker 3>have to defend them yourselves. And that is going to

0:06:51.200 --> 0:06:53.600
<v Speaker 3>mean that there's going to be greater spending on defense

0:06:53.880 --> 0:06:56.400
<v Speaker 3>across a greater range of companies, you know, to the

0:06:56.440 --> 0:06:59.400
<v Speaker 3>benefit of those companies within the local stock markets.

0:07:00.600 --> 0:07:03.440
<v Speaker 5>Michael, you alluded to some of this earlier. How when

0:07:03.480 --> 0:07:07.039
<v Speaker 5>it comes to us exceptionalism, we've seen a bit of

0:07:07.080 --> 0:07:10.720
<v Speaker 5>it creepedback and starts AI a key play. Maybe you

0:07:10.760 --> 0:07:13.600
<v Speaker 5>talk about the valuation with there. Bonds have also creped

0:07:13.640 --> 0:07:16.200
<v Speaker 5>back in, but dollar, I think that's still the missing

0:07:16.240 --> 0:07:17.640
<v Speaker 5>piece of the puzzle.

0:07:18.160 --> 0:07:19.160
<v Speaker 2>And you know, you're.

0:07:19.000 --> 0:07:21.160
<v Speaker 5>Still burish in the view even into the end of

0:07:21.200 --> 0:07:24.280
<v Speaker 5>the year. What are you expecting into next year as well?

0:07:26.240 --> 0:07:26.360
<v Speaker 1>Well?

0:07:26.400 --> 0:07:28.200
<v Speaker 4>Again, I think the dollars in a bear market.

0:07:28.280 --> 0:07:31.840
<v Speaker 3>And again, if the dollar was as exceptional as you know,

0:07:31.880 --> 0:07:34.320
<v Speaker 3>everyone thought it was a year ago, the dollar wouldn't

0:07:34.320 --> 0:07:37.240
<v Speaker 3>be going down. You know, the dollar is going down

0:07:37.320 --> 0:07:41.800
<v Speaker 3>because the US is less exceptional. It's it's got less

0:07:41.880 --> 0:07:46.960
<v Speaker 3>exceptional outperformance and it's got a less exceptional narrative.

0:07:47.000 --> 0:07:48.600
<v Speaker 4>And then again that's partly.

0:07:48.240 --> 0:07:52.360
<v Speaker 3>Because the rest of the world has reasons to invest

0:07:52.400 --> 0:07:58.560
<v Speaker 3>there Europe defense, europe fiscal stimulus, China rebalancing a week

0:07:58.840 --> 0:08:02.640
<v Speaker 3>in a week dollar, which is great for emerging market.

0:08:02.760 --> 0:08:04.600
<v Speaker 4>So twenty five is.

0:08:04.600 --> 0:08:09.080
<v Speaker 3>Very different in that suddenly an equity investor has other

0:08:09.200 --> 0:08:14.400
<v Speaker 3>places to invest in. It's not just exclusively the NASDAG.

0:08:14.840 --> 0:08:16.200
<v Speaker 4>And so that's why I think.

0:08:16.000 --> 0:08:18.080
<v Speaker 3>That the US has lost a little bit of its

0:08:18.160 --> 0:08:21.160
<v Speaker 3>luster in terms of the exceptionalism story. Of course, it's

0:08:21.200 --> 0:08:24.640
<v Speaker 3>still got Ai, it's still got, you know, a business sector,

0:08:24.680 --> 0:08:26.840
<v Speaker 3>the ones to make money, blah blah blah. But I

0:08:26.840 --> 0:08:31.320
<v Speaker 3>think the dollar is something that will be sacrificed, if

0:08:31.360 --> 0:08:34.000
<v Speaker 3>you like, by the Trump administration. If you want to

0:08:34.040 --> 0:08:37.200
<v Speaker 3>make America great again, and you want to rebalance the

0:08:37.280 --> 0:08:39.840
<v Speaker 3>US economy and you want to get manufacturing going in

0:08:39.920 --> 0:08:45.640
<v Speaker 3>the crucially electorally important states of Pennsylvania, Michigan and Wisconsin,

0:08:46.120 --> 0:08:48.280
<v Speaker 3>you really don't want a strong dollar. So I think

0:08:48.280 --> 0:08:50.400
<v Speaker 3>the dollar is in a bear market.

0:08:50.520 --> 0:08:52.880
<v Speaker 4>It's just beginning. It will continue.

0:08:52.920 --> 0:08:54.920
<v Speaker 3>But as I said, if you look at gold, you

0:08:54.960 --> 0:08:57.360
<v Speaker 3>look at silver, they're telling you that they're very much

0:08:57.360 --> 0:08:59.720
<v Speaker 3>in the early stages of that dollar bear market.

0:09:00.880 --> 0:09:04.199
<v Speaker 5>Yeah, and all this as part of as you highlighted,

0:09:04.280 --> 0:09:08.559
<v Speaker 5>their investors looking for alternatives other than the US, such

0:09:08.559 --> 0:09:12.120
<v Speaker 5>and perhaps in Japan. Michael, really good to get your

0:09:12.120 --> 0:09:15.920
<v Speaker 5>insights on all this. Michael Hartnet is chief investment strategist

0:09:16.000 --> 0:09:16.920
<v Speaker 5>at b of A.

0:09:26.280 --> 0:09:29.280
<v Speaker 2>Welcome back to the Daybreak Asia podcast. I'm Dan Schwartzman

0:09:29.360 --> 0:09:32.720
<v Speaker 2>in for Doug Krisner. This morning, Chinese President Shijin Bing

0:09:32.880 --> 0:09:35.040
<v Speaker 2>is pledging over one and a half billion dollars in

0:09:35.040 --> 0:09:38.840
<v Speaker 2>grants and loans to member states of the Shanghai Cooperation Organization.

0:09:39.400 --> 0:09:42.760
<v Speaker 2>Attendees at this year's summit include Russian President Vladimir Putin

0:09:42.840 --> 0:09:47.120
<v Speaker 2>and Indian President Narendra Modi. Speaking in Tianjin, she called

0:09:47.120 --> 0:09:49.840
<v Speaker 2>for the creation of a development bank, more joint green

0:09:49.920 --> 0:09:54.320
<v Speaker 2>energy projects, and expanded education programs. We got reaction from

0:09:54.400 --> 0:09:57.000
<v Speaker 2>Henry Wang, founder and president of the Center for China

0:09:57.000 --> 0:10:00.360
<v Speaker 2>and Globalization. He spoke at Bloomberg's sherry On and April

0:10:00.440 --> 0:10:01.840
<v Speaker 2>hung on the Asia Trade.

0:10:02.240 --> 0:10:04.680
<v Speaker 5>Very good to see you, sir. Let's start off with

0:10:04.880 --> 0:10:07.960
<v Speaker 5>your key takeaways from the SEO. I think one of

0:10:08.000 --> 0:10:15.320
<v Speaker 5>the meaningful developments includes grants, investments, loans that China is pledging.

0:10:15.360 --> 0:10:16.800
<v Speaker 5>How significant is that to you?

0:10:17.679 --> 0:10:21.080
<v Speaker 6>Yes, thank you having absolutely you know you see this

0:10:21.720 --> 0:10:26.760
<v Speaker 6>SEO summit held in Tenjin is really very big significance

0:10:26.800 --> 0:10:31.679
<v Speaker 6>because it is the largest SEO gathering in more than

0:10:31.720 --> 0:10:34.959
<v Speaker 6>twenty years. It's probably the one of the highest level

0:10:35.080 --> 0:10:38.960
<v Speaker 6>that we have twenty over some leaders there and Indian

0:10:39.000 --> 0:10:42.880
<v Speaker 6>Primise Moody was there. And also this SEO has been

0:10:42.920 --> 0:10:47.120
<v Speaker 6>well planned and organized and they used to many statement

0:10:47.200 --> 0:10:49.960
<v Speaker 6>For example, they have a ten year long term strategy

0:10:50.080 --> 0:10:54.640
<v Speaker 6>has been stipulated. As you said, they're also going to

0:10:54.760 --> 0:10:58.479
<v Speaker 6>establish a new SEO bank. But further than that, they're

0:10:58.520 --> 0:11:02.400
<v Speaker 6>also built up quite a few platform plans. For example,

0:11:02.520 --> 0:11:09.720
<v Speaker 6>platform on the green industry, on the energy on also

0:11:09.840 --> 0:11:13.840
<v Speaker 6>digital and also there's a science and technology platform, education

0:11:14.000 --> 0:11:17.600
<v Speaker 6>platform or vocational platform. On top of that. China also

0:11:17.679 --> 0:11:24.160
<v Speaker 6>pledged actual dollars and the moneys to this development, so

0:11:24.200 --> 0:11:26.640
<v Speaker 6>that you have something to start with, you have something

0:11:26.679 --> 0:11:31.080
<v Speaker 6>to catalyze with all those members, So this is really

0:11:31.280 --> 0:11:33.680
<v Speaker 6>you have an anchor to really drive that. Plus you

0:11:33.760 --> 0:11:37.880
<v Speaker 6>have all those heads of state gather here to really

0:11:38.360 --> 0:11:42.600
<v Speaker 6>push forward a kind of the more in the multipolar world.

0:11:42.679 --> 0:11:46.800
<v Speaker 6>There's one strong polo here right here gathering as well.

0:11:46.880 --> 0:11:50.080
<v Speaker 6>So they actually propose many new thinking as well, that

0:11:50.080 --> 0:11:54.000
<v Speaker 6>you're going to maintain maltiltalism, stick to you and principle,

0:11:54.559 --> 0:11:56.679
<v Speaker 6>maintain wto There's.

0:11:56.480 --> 0:11:58.600
<v Speaker 7>A lot on there. So I think this is really

0:11:58.679 --> 0:11:59.920
<v Speaker 7>a very important gap.

0:12:01.480 --> 0:12:05.640
<v Speaker 5>Henry, talk to us about this show of unity between

0:12:05.760 --> 0:12:10.920
<v Speaker 5>the Indian, Chinese Russian presidents. What do you see beyond

0:12:10.920 --> 0:12:14.880
<v Speaker 5>the symbolism as a way to counter US dominance.

0:12:15.840 --> 0:12:19.480
<v Speaker 7>Well, I think they certainly there's a very.

0:12:19.320 --> 0:12:25.280
<v Speaker 6>Strong uh you know this, this pleasure demonstrated on what

0:12:25.559 --> 0:12:28.040
<v Speaker 6>US has been pushing for. For example, you know, UNI

0:12:28.160 --> 0:12:33.280
<v Speaker 6>Lato is unpacking on back off of the who you know,

0:12:33.400 --> 0:12:38.080
<v Speaker 6>Climbate agreement and the UNISICO and threatening W two and

0:12:38.120 --> 0:12:39.040
<v Speaker 6>all those you know.

0:12:39.120 --> 0:12:40.000
<v Speaker 7>Unilatter approach.

0:12:41.120 --> 0:12:45.480
<v Speaker 6>Certainly, the China being the second largest economy and India

0:12:45.600 --> 0:12:48.520
<v Speaker 6>soon to be the third largest economy, they really want

0:12:48.640 --> 0:12:50.680
<v Speaker 6>to show to the world.

0:12:50.559 --> 0:12:53.359
<v Speaker 7>And including Russia, that they want to maintain.

0:12:53.480 --> 0:12:56.640
<v Speaker 6>UH the eighty years older global system, want to improve

0:12:56.679 --> 0:12:58.200
<v Speaker 6>in largely hands of this system.

0:12:58.440 --> 0:13:00.360
<v Speaker 7>They don't want this to be disrupted. So I think

0:13:00.559 --> 0:13:02.120
<v Speaker 7>there's a lot of matches sent on that.

0:13:02.200 --> 0:13:06.360
<v Speaker 6>You know, they want to actually keep the go go

0:13:07.160 --> 0:13:11.120
<v Speaker 6>trade and go go business as as as strong as

0:13:11.160 --> 0:13:15.600
<v Speaker 6>they can, and also SL become a mediating public platform.

0:13:15.640 --> 0:13:19.000
<v Speaker 6>You see both Prime Mister Moody and Pakistan Mini Prime

0:13:19.000 --> 0:13:22.360
<v Speaker 6>Minister they're at the same table Armenia as a jam

0:13:22.679 --> 0:13:24.600
<v Speaker 6>had to say, China and India.

0:13:24.360 --> 0:13:25.120
<v Speaker 7>Actually get together.

0:13:25.200 --> 0:13:27.839
<v Speaker 6>So I think this shows that of course they want

0:13:27.920 --> 0:13:30.800
<v Speaker 6>to promote in peace. So SL could be an extra

0:13:30.920 --> 0:13:34.880
<v Speaker 6>guarante to UH. Maybe bricks countries like China India can

0:13:35.160 --> 0:13:38.600
<v Speaker 6>help settle the Ukraine Russian War.

0:13:40.200 --> 0:13:42.480
<v Speaker 1>How would that differ from all of the other multilateral

0:13:42.600 --> 0:13:44.920
<v Speaker 1>organizations that we already have in place, like the China

0:13:45.000 --> 0:13:46.960
<v Speaker 1>late ai i B for example.

0:13:47.960 --> 0:13:50.960
<v Speaker 7>Yeah, well ai B is an international organization.

0:13:51.200 --> 0:13:55.080
<v Speaker 6>You have a lot of you know, largely developed country

0:13:55.280 --> 0:13:58.840
<v Speaker 6>like all the European country are there and many Australia, Canada,

0:13:59.120 --> 0:14:01.760
<v Speaker 6>in New Zealand there, so so there's a lot of

0:14:01.800 --> 0:14:06.320
<v Speaker 6>a great mix of uh uh bricks countries and the

0:14:06.400 --> 0:14:09.680
<v Speaker 6>developed countries like India was there as as a vice president.

0:14:09.800 --> 0:14:12.960
<v Speaker 6>India actually received the largest loan from ai B. But

0:14:13.600 --> 0:14:16.360
<v Speaker 6>that's purely financial. But like there's also a new development

0:14:16.400 --> 0:14:22.760
<v Speaker 6>bank that established in Shaghai that focused on the bricks

0:14:22.760 --> 0:14:26.840
<v Speaker 6>country development. So this time they have se O Bank developments.

0:14:26.920 --> 0:14:31.400
<v Speaker 6>So you can see, actually there's more financially economically interchanges

0:14:31.920 --> 0:14:35.400
<v Speaker 6>with this or the which is which is you know

0:14:35.480 --> 0:14:36.400
<v Speaker 6>reflect reality.

0:14:36.480 --> 0:14:39.120
<v Speaker 7>I mean bricks countries, SEO countries.

0:14:38.760 --> 0:14:43.360
<v Speaker 6>Are already growing economic strong bricks country GDP is very

0:14:43.440 --> 0:14:45.440
<v Speaker 6>larger than G seven now, so I think there is

0:14:45.560 --> 0:14:47.479
<v Speaker 6>reflect that business.

0:14:48.000 --> 0:14:52.520
<v Speaker 1>Geopolitically speaking, though, how sustainable are such partnerships given of

0:14:52.560 --> 0:14:58.200
<v Speaker 1>course the China has issues with other countries, territorial issues

0:14:58.240 --> 0:15:01.920
<v Speaker 1>with Southeast Asian countries, to mention. Of course the China

0:15:02.080 --> 0:15:05.400
<v Speaker 1>India relationship also mare intense a little bit because of

0:15:05.440 --> 0:15:08.600
<v Speaker 1>the Pakistan relationship as well well.

0:15:08.680 --> 0:15:11.560
<v Speaker 6>I think this is going to improve you know, economic

0:15:11.880 --> 0:15:15.040
<v Speaker 6>comes first and then I see the key takeaway is

0:15:15.040 --> 0:15:17.440
<v Speaker 6>that also they build up kind of some some kind

0:15:17.440 --> 0:15:21.680
<v Speaker 6>of cordial and friendly atmosphere at the summit, particularly with India,

0:15:22.560 --> 0:15:26.480
<v Speaker 6>that both Moody and persons should announced that we're not rivraries,

0:15:26.560 --> 0:15:29.560
<v Speaker 6>you know, not that US and Europe take China as

0:15:29.560 --> 0:15:31.360
<v Speaker 6>a rivalry. You know, they are saying, you know, we're

0:15:31.360 --> 0:15:34.840
<v Speaker 6>not riving. So you know, all those countries are seeking

0:15:34.880 --> 0:15:39.560
<v Speaker 6>friendly corporation. So further that then you can see, you know,

0:15:39.600 --> 0:15:43.320
<v Speaker 6>they could improve relations. And there's quite a few Asian

0:15:43.400 --> 0:15:46.240
<v Speaker 6>countries and allows is added to the member or part

0:15:46.240 --> 0:15:49.680
<v Speaker 6>of the member of SEO as well. And this is

0:15:49.720 --> 0:15:54.760
<v Speaker 6>really a good way to gather cooperative spirit. Particularly this

0:15:54.880 --> 0:15:57.400
<v Speaker 6>time you see SCO is building it gradually built into

0:15:58.320 --> 0:16:02.200
<v Speaker 6>a big block of we can corporation. So it's it's

0:16:02.240 --> 0:16:04.680
<v Speaker 6>really interesting you have a I B, you have our CP,

0:16:04.960 --> 0:16:08.760
<v Speaker 6>you have UH you know SCO breaks. So those are

0:16:08.920 --> 0:16:12.600
<v Speaker 6>really great shift to more UH in addition to security,

0:16:12.640 --> 0:16:15.760
<v Speaker 6>more economy and business uh. You know, for example, the

0:16:15.840 --> 0:16:18.920
<v Speaker 6>trade amount of the s steel countries amounts to two

0:16:18.960 --> 0:16:21.320
<v Speaker 6>pound street billion dollars a year.

0:16:21.440 --> 0:16:22.400
<v Speaker 7>That's enormous.

0:16:22.440 --> 0:16:24.840
<v Speaker 6>So so I think that that's really interesting to see

0:16:25.200 --> 0:16:25.840
<v Speaker 6>this kind of a.

0:16:27.440 --> 0:16:31.560
<v Speaker 7>Proliferation or you know, striving of the uh uh.

0:16:31.320 --> 0:16:35.840
<v Speaker 6>You know economic boom or economic model that be emerging

0:16:36.240 --> 0:16:39.960
<v Speaker 6>against this. You know that the globally is not functioned

0:16:40.000 --> 0:16:43.280
<v Speaker 6>so well, so there's a lot of origional uh practice.

0:16:43.320 --> 0:16:46.520
<v Speaker 1>Now, Henry juya One, really good to have you with us,

0:16:46.520 --> 0:16:50.440
<v Speaker 1>founder and president at the Center for China and Globalization.

0:16:53.520 --> 0:16:56.880
<v Speaker 6>Thanks for listening to today's episode of the Bloomberg Daybreak

0:16:57.040 --> 0:17:02.040
<v Speaker 6>Asia Edition podcast. Each weekday, we look at story shaping markets, finance,

0:17:02.400 --> 0:17:05.479
<v Speaker 6>and geopolitics in the Asia Pacific. You can find us

0:17:05.520 --> 0:17:09.680
<v Speaker 6>on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere

0:17:09.720 --> 0:17:12.840
<v Speaker 6>else you listen. Join us again tomorrow for insight on

0:17:12.880 --> 0:17:17.000
<v Speaker 6>the market moves from Hong Kong to Singapore and Australia.

0:17:17.440 --> 0:17:19.919
<v Speaker 4>I'm Doug Prisoner and this is Bloomberg