1
00:00:02,440 --> 00:00:03,000
Speaker 1: Good morning.

2
00:00:03,160 --> 00:00:04,720
Speaker 2: I'm Richard Salama.

3
00:00:04,400 --> 00:00:07,320
Speaker 1: And I'm Doug Prisner. Here are the stories we're following today.

4
00:00:07,920 --> 00:00:09,760
Speaker 2: All right, well, let's have a look at what's happening

5
00:00:09,800 --> 00:00:12,840
Speaker 2: with Apple as it extends an agreement to get the

6
00:00:13,240 --> 00:00:16,760
Speaker 2: modern modem semiconductors from Qualcom for three more years.

7
00:00:17,120 --> 00:00:17,280
Speaker 3: Now.

8
00:00:17,280 --> 00:00:19,560
Speaker 2: It's been taking as a sign that the company's efforts

9
00:00:19,560 --> 00:00:22,840
Speaker 2: to design its chips in house is taking rather longer

10
00:00:22,880 --> 00:00:25,959
Speaker 2: than anticipated. Let's get details now. Fro Bloomberg's Edlundo.

11
00:00:25,800 --> 00:00:29,720
Speaker 4: Bloomberg's reported that in house, Apple has been working on

12
00:00:29,800 --> 00:00:33,560
Speaker 4: its own modem along with its other proprietary silicon strategies.

13
00:00:34,120 --> 00:00:37,000
Speaker 4: And the story here is that doing it yourself is difficult,

14
00:00:37,080 --> 00:00:39,760
Speaker 4: particularly when you want your modem to be able to

15
00:00:39,880 --> 00:00:43,240
Speaker 4: connect to the latest generation network five G, but also

16
00:00:43,360 --> 00:00:44,800
Speaker 4: work across jurisdictions.

17
00:00:44,960 --> 00:00:47,600
Speaker 2: Wendy, That was Ed Ludler. Tomorrow, we've got Apple and

18
00:00:47,720 --> 00:00:50,320
Speaker 2: veiling its iphoone fifteen, as well as updated Apple watches

19
00:00:50,360 --> 00:00:53,080
Speaker 2: and AirPods, the iPhone maker counting on the products to

20
00:00:53,080 --> 00:00:55,760
Speaker 2: help reverse a sales slide that has now lasted for

21
00:00:55,840 --> 00:00:56,600
Speaker 2: three quarters.

22
00:00:56,640 --> 00:01:00,000
Speaker 1: Well, the standoff between Disney and cable provider Charter Commune

23
00:01:00,520 --> 00:01:02,560
Speaker 1: seems to be over the companies were able to reach

24
00:01:02,600 --> 00:01:06,560
Speaker 1: an agreement to carry Disney channels. This would include ABC

25
00:01:06,760 --> 00:01:11,480
Speaker 1: and ESPN. Charter will also offer Disney's flagship streaming service

26
00:01:11,560 --> 00:01:16,240
Speaker 1: at no additional cost to cable TV subscribers. Bloomberg's Skeeter

27
00:01:16,360 --> 00:01:19,520
Speaker 1: Raganathan says today's deal is a win win for consumers

28
00:01:19,600 --> 00:01:20,840
Speaker 1: and TV companies.

29
00:01:21,240 --> 00:01:24,280
Speaker 5: We have fourteen point seven million Charter subscribers who are

30
00:01:24,280 --> 00:01:27,000
Speaker 5: affected by this blackout, so this is good news for them.

31
00:01:27,160 --> 00:01:30,959
Speaker 5: But this really has huge implications for the rest of

32
00:01:31,160 --> 00:01:35,480
Speaker 5: the PayTV companies such as you know, a paramount of Fox, A,

33
00:01:35,600 --> 00:01:39,240
Speaker 5: Warner Brothers, Discovery, which are heavily reliant on you know,

34
00:01:39,360 --> 00:01:43,440
Speaker 5: PATV revenues. They're not as diversified as a Disney, for instance,

35
00:01:43,440 --> 00:01:45,679
Speaker 5: which you know, has a huge exposure to theme barbs

36
00:01:45,680 --> 00:01:47,920
Speaker 5: and studios and things like that. This would have had

37
00:01:48,240 --> 00:01:52,919
Speaker 5: huge ramifications if indeed it had been a permanent blackout.

38
00:01:52,480 --> 00:01:54,880
Speaker 1: That is Bloomberg Skeeter Raganath. And by the way, Charter

39
00:01:54,920 --> 00:01:58,400
Speaker 1: Communications stopped carrying Disney content for more than a week

40
00:01:58,840 --> 00:02:01,360
Speaker 1: because of this dispute over fees for shot.

41
00:02:01,960 --> 00:02:05,920
Speaker 2: All right, let's get to a highly anticipated IPO where

42
00:02:06,280 --> 00:02:09,000
Speaker 2: there seems to be unprecedented demand, and of course we're

43
00:02:09,040 --> 00:02:12,639
Speaker 2: talking about a British computer chip designer that makes Tom

44
00:02:12,680 --> 00:02:14,000
Speaker 2: Busby has the details.

45
00:02:14,320 --> 00:02:19,400
Speaker 6: Armholding's initial public stock offering is already oversubscribed by ten times,

46
00:02:19,880 --> 00:02:22,760
Speaker 6: and bankers say the SoftBank Group spin off plans to

47
00:02:22,880 --> 00:02:26,520
Speaker 6: stop taking orders by Tuesday afternoon, one day earlier than planned.

48
00:02:26,600 --> 00:02:29,960
Speaker 6: Even though ARM still plans to price those shares on Wednesday.

49
00:02:30,320 --> 00:02:32,560
Speaker 6: After a drought of IPOs this year, the offering could

50
00:02:32,600 --> 00:02:36,720
Speaker 6: actually end up as much as fifteen times oversubscribed by Wednesday.

51
00:02:37,040 --> 00:02:40,600
Speaker 6: Those sources tell Bloomberg, I'm Tom Busby, Bloomberg Radio.

52
00:02:40,760 --> 00:02:43,480
Speaker 1: Well. Jamie Diamond, the CEO of JP Morgan Chase, took

53
00:02:43,520 --> 00:02:48,000
Speaker 1: aim at proposed higher capital requirements proposed by American regulators.

54
00:02:48,400 --> 00:02:51,480
Speaker 1: Diamond said requiring US banks to hold more capital than

55
00:02:51,520 --> 00:02:55,000
Speaker 1: their international competitors is a huge negative over time.

56
00:02:55,360 --> 00:02:58,120
Speaker 3: The fellow reserves have humility. They're the ones that told

57
00:02:58,160 --> 00:03:00,400
Speaker 3: the world rache on going up, and by what wasn't

58
00:03:00,440 --> 00:03:02,359
Speaker 3: The Federal Reserve in general is each one of them

59
00:03:02,360 --> 00:03:05,360
Speaker 3: independently factors each central bank, so by with them might

60
00:03:05,400 --> 00:03:07,279
Speaker 3: have a little more humility over stuff.

61
00:03:07,000 --> 00:03:09,760
Speaker 1: Like this, Jamie Diamond, there the CEO of JP Morgan Chase.

62
00:03:09,800 --> 00:03:12,560
Speaker 1: He went on to warn that higher capital requirements will

63
00:03:12,560 --> 00:03:16,240
Speaker 1: make certain activities like mortgages and small business lending harder

64
00:03:16,240 --> 00:03:19,359
Speaker 1: for banks, and he also questioned whether regulators learned the

65
00:03:19,440 --> 00:03:22,640
Speaker 1: right lessons from the failures of Silicon Valley Bank and

66
00:03:22,680 --> 00:03:24,320
Speaker 1: First Republic earlier this year.

67
00:03:24,440 --> 00:03:28,480
Speaker 2: Rish Okay he staying with banking UBS cutting hundreds of

68
00:03:28,520 --> 00:03:31,440
Speaker 2: wealth jobs in Asia as activities slows down. Let's get

69
00:03:31,440 --> 00:03:33,840
Speaker 2: details now from in Joanne One.

70
00:03:34,280 --> 00:03:37,400
Speaker 7: UBS has reduced some overlapping roles in the past months,

71
00:03:37,560 --> 00:03:41,200
Speaker 7: and further cuts are respected through November. The news comes

72
00:03:41,200 --> 00:03:44,360
Speaker 7: as a bank response to MUDA client activity and China's

73
00:03:44,400 --> 00:03:47,240
Speaker 7: lowing economy, where it's told jobs that will be eliminated

74
00:03:47,280 --> 00:03:50,920
Speaker 7: include relationship managers in Hong Kong and Singapore. They also

75
00:03:50,960 --> 00:03:54,520
Speaker 7: include the majority within teams newly acquired from Credit Sueez,

76
00:03:54,920 --> 00:03:57,720
Speaker 7: but UBS plans to keep the majority of private bankers

77
00:03:57,840 --> 00:04:00,720
Speaker 7: in Australia and India for now. In Hong Kong. I'm

78
00:04:00,760 --> 00:04:02,240
Speaker 7: joined one Bloomberg Radio.

79
00:04:02,520 --> 00:04:06,120
Speaker 1: Well, it seems as though the Chinese economy may be stabilizing.

80
00:04:06,160 --> 00:04:09,200
Speaker 1: We've got some indications that may be happening when you

81
00:04:09,240 --> 00:04:13,240
Speaker 1: look at credit creation and data on inflation both seem

82
00:04:13,280 --> 00:04:15,320
Speaker 1: to be improving. Here's Bloomberg's Bonniel.

83
00:04:15,760 --> 00:04:19,120
Speaker 8: The strong credit data published Monday by China's Central Bank

84
00:04:19,200 --> 00:04:22,560
Speaker 8: showed recent policy measures may be starting to lift household

85
00:04:22,600 --> 00:04:26,760
Speaker 8: demand for mortgages. Corporate loans also picked up. The un

86
00:04:26,880 --> 00:04:30,320
Speaker 8: gained after the central bank escalated its defense of the currency.

87
00:04:30,960 --> 00:04:34,480
Speaker 8: Those add to the encouraging signs from the weekend. China's

88
00:04:34,480 --> 00:04:37,680
Speaker 8: consumer prices returned to gains after its July drop, and

89
00:04:37,800 --> 00:04:42,240
Speaker 8: factory gates deflation also narrowed. Now economists say the key

90
00:04:42,360 --> 00:04:45,279
Speaker 8: question is to what extent the economic momentum can be

91
00:04:45,320 --> 00:04:48,400
Speaker 8: sustained in Hong Kong. I'm Bonniel Bloomberg Radio.

92
00:04:48,600 --> 00:04:50,640
Speaker 1: Well Today. In the US, the market certainly kept a

93
00:04:50,640 --> 00:04:54,760
Speaker 1: close eye on news regarding negotiations between the United Auto

94
00:04:54,760 --> 00:04:58,800
Speaker 1: Workers and the big automakers. The Biden administration is deploying

95
00:04:58,800 --> 00:05:02,360
Speaker 1: some top officials to help facilitate these talks. The UAW

96
00:05:02,520 --> 00:05:05,680
Speaker 1: said it's ready to negotiate day and night with GM

97
00:05:05,800 --> 00:05:09,040
Speaker 1: Ford and to Atlantis until a deal is reached by

98
00:05:09,080 --> 00:05:12,000
Speaker 1: that deadline, which I believe is September fourteenth now. According

99
00:05:12,000 --> 00:05:16,440
Speaker 1: to Anderson Economic Group, over in Michigan. Just ten days

100
00:05:16,480 --> 00:05:20,400
Speaker 1: of a strike would reduce US GDP by five point

101
00:05:20,480 --> 00:05:23,920
Speaker 1: six billion, and it would also likely push Michigan's economy

102
00:05:23,960 --> 00:05:27,360
Speaker 1: into recession. It could also make some car models scarce

103
00:05:27,920 --> 00:05:31,400
Speaker 1: and push prices up after they started coming down from

104
00:05:31,400 --> 00:05:34,600
Speaker 1: those record levels. Daybreak Asia and an update on Global

105
00:05:34,600 --> 00:05:38,680
Speaker 1: News is next State Media and North Korea is confirming

106
00:05:38,760 --> 00:05:42,760
Speaker 1: the upcoming meeting between Kim Jong un and Vladimir Putin.

107
00:05:43,400 --> 00:05:45,760
Speaker 1: We have ed Baxter on Global News, Eddie.

108
00:05:45,560 --> 00:05:49,359
Speaker 9: Yeah, thanks Doug. They both have things the other desperately needs.

109
00:05:49,440 --> 00:05:53,039
Speaker 9: North Korea weaponry could allow Russia to prolong at Ukraine invasion,

110
00:05:53,080 --> 00:05:56,279
Speaker 9: but there are questions about how much difference it'll make overall.

111
00:05:56,520 --> 00:05:59,839
Speaker 9: First response from the US State Department Matthew Miller.

112
00:05:59,640 --> 00:06:02,919
Speaker 10: Obviously, it means that he is having trouble sustaining the

113
00:06:02,960 --> 00:06:04,640
Speaker 10: military effort and so it is looking for help.

114
00:06:04,839 --> 00:06:06,560
Speaker 9: And Miller says going on and.

115
00:06:06,640 --> 00:06:09,279
Speaker 10: Only as he failed to achieve his goals on the battlefield.

116
00:06:09,560 --> 00:06:12,599
Speaker 10: But you see him traveling across his own country hat

117
00:06:12,640 --> 00:06:16,159
Speaker 10: in hand to beg Kim John Un for military assistant.

118
00:06:15,839 --> 00:06:18,120
Speaker 9: And says sanctions on Russia are apparently working.

119
00:06:18,160 --> 00:06:21,200
Speaker 10: I think the fact that Russia is having to beg

120
00:06:21,320 --> 00:06:24,880
Speaker 10: North Korea for military sport speaks to the effectiveness of

121
00:06:24,920 --> 00:06:27,440
Speaker 10: our sanctions and our export controls. That they have been

122
00:06:27,480 --> 00:06:30,719
Speaker 10: denied the technology they need and the raw materials they

123
00:06:30,800 --> 00:06:31,360
Speaker 10: need to fund.

124
00:06:31,480 --> 00:06:34,200
Speaker 9: Meeting expected in the next couple of days. Meanwhile, a

125
00:06:34,240 --> 00:06:38,200
Speaker 9: senior NATO official and Elena Beherbach saying that Russia is

126
00:06:38,360 --> 00:06:41,320
Speaker 9: likely to be able to mount a significant offensive operation

127
00:06:41,440 --> 00:06:44,400
Speaker 9: this year is not going to be able because of

128
00:06:44,400 --> 00:06:48,440
Speaker 9: a lack of munitions. FDA has approved the Pfizer Maderna

129
00:06:48,520 --> 00:06:50,960
Speaker 9: vaccines today as there is a tick up and late

130
00:06:51,000 --> 00:06:53,800
Speaker 9: summer surge of the virus. Peter Marks of the FDA

131
00:06:53,880 --> 00:06:56,720
Speaker 9: says the public can be assured that the update vaccines

132
00:06:56,880 --> 00:07:01,400
Speaker 9: are safe. It should be noted these are not boosters.

133
00:07:01,839 --> 00:07:05,120
Speaker 9: They are updated vaccines to protect against the new variants.

134
00:07:05,480 --> 00:07:08,520
Speaker 9: Approof for ages twelve and up. CDC supposed to meet

135
00:07:08,560 --> 00:07:11,920
Speaker 9: tomorrow to issue guidance. Donald Trump has filed a motion

136
00:07:12,040 --> 00:07:16,640
Speaker 9: to disqualify the judge and the Federal Election Prosecution, remembering

137
00:07:16,960 --> 00:07:19,560
Speaker 9: nine to eleven, twenty two years ago, an attack on

138
00:07:19,600 --> 00:07:24,120
Speaker 9: America New York City the Pentagon United Flight ninety three.

139
00:07:24,200 --> 00:07:27,080
Speaker 9: President Biden, returning from the g Ton of twenty here

140
00:07:27,080 --> 00:07:29,120
Speaker 9: with troops in Anchorage, Alaska.

141
00:07:29,640 --> 00:07:35,640
Speaker 11: Never forget, we never forget each of us, each of

142
00:07:35,640 --> 00:07:40,880
Speaker 11: those precious lives stolen too soon when evil attacked Browns

143
00:07:40,920 --> 00:07:44,800
Speaker 11: Are in New York. And I remember standing there the

144
00:07:44,880 --> 00:07:47,720
Speaker 11: next day and looking at the building. I felt like

145
00:07:47,800 --> 00:07:49,520
Speaker 11: I was looking through the gates of hell.

146
00:07:50,040 --> 00:07:54,080
Speaker 9: So many memories. Howard Lutnick, CEO of Cantor Fitzgerald, was

147
00:07:54,120 --> 00:07:56,000
Speaker 9: on his way back to his office at the World

148
00:07:56,000 --> 00:07:56,640
Speaker 9: Trade Center.

149
00:07:56,720 --> 00:08:00,360
Speaker 12: Then the building collapsed. I ran for my life and

150
00:08:00,680 --> 00:08:03,480
Speaker 12: I ended up diving under a car. And you've all

151
00:08:03,520 --> 00:08:06,240
Speaker 12: seen that sort of tornado of black smoke while I

152
00:08:06,280 --> 00:08:08,920
Speaker 12: was stuck in that black smoke. And then I wandered.

153
00:08:09,240 --> 00:08:12,840
Speaker 12: I wandered uptown until people were cleaned. When I called,

154
00:08:12,960 --> 00:08:15,080
Speaker 12: you know, someone was on a payphone and I went

155
00:08:15,160 --> 00:08:17,560
Speaker 12: to the front of the line and they looked at

156
00:08:17,600 --> 00:08:19,280
Speaker 12: me like I was a ghost because I was just

157
00:08:19,360 --> 00:08:21,920
Speaker 12: covered in soot. And I called my wife to tell

158
00:08:21,920 --> 00:08:22,840
Speaker 12: her I was alive.

159
00:08:23,320 --> 00:08:25,720
Speaker 9: Lad Nex says Cannabis raised three hundred and eighty million

160
00:08:25,760 --> 00:08:28,600
Speaker 9: dollars for families and survivors over the twenty two years,

161
00:08:29,000 --> 00:08:31,960
Speaker 9: and of course services today New York City the reading

162
00:08:31,960 --> 00:08:32,760
Speaker 9: of names.

163
00:08:32,520 --> 00:08:34,319
Speaker 1: Doctor Paul W. M.

164
00:08:34,400 --> 00:08:40,240
Speaker 10: Brose, specialist Craig S.

165
00:08:40,320 --> 00:08:42,319
Speaker 1: Emmonson United States.

166
00:08:42,120 --> 00:08:50,720
Speaker 9: Army and in Washington, d C. The Chimes Global News,

167
00:08:51,320 --> 00:08:54,320
Speaker 9: powered by more than twenty seven hundred journalists and analysts

168
00:08:54,320 --> 00:08:57,480
Speaker 9: in over one hundred twenty countries. In San Francisco, I

169
00:08:57,559 --> 00:09:01,480
Speaker 9: met Baxter. This is Bloomberg to our guest. Now, Anthony

170
00:09:01,520 --> 00:09:03,800
Speaker 9: Doyle is with us. He has head of investment strategy

171
00:09:04,040 --> 00:09:07,600
Speaker 9: at Fire Trail Investments in Sydney, joining us from our

172
00:09:07,640 --> 00:09:10,400
Speaker 9: studios there. Anthony, thanks for being with us. I think

173
00:09:10,440 --> 00:09:12,920
Speaker 9: we've got to begin with some of these sharp movements

174
00:09:12,920 --> 00:09:14,960
Speaker 9: that we saw in the foreign exchange. I mean a

175
00:09:14,960 --> 00:09:17,400
Speaker 9: big drop in the dollar and a rally not only

176
00:09:17,400 --> 00:09:20,520
Speaker 9: in the Japanese currency, but the offshore Chinese currency as well.

177
00:09:20,880 --> 00:09:23,160
Speaker 1: Have we reached a turning point? Do you think in

178
00:09:23,559 --> 00:09:24,440
Speaker 1: the dollar story?

179
00:09:25,160 --> 00:09:28,720
Speaker 13: It's probably far too early to say at this point. Obviously,

180
00:09:28,800 --> 00:09:31,600
Speaker 13: one data point, one day's training doesn't make a trend,

181
00:09:32,320 --> 00:09:38,080
Speaker 13: and with the continued expectation that the FED is potentially

182
00:09:38,160 --> 00:09:41,840
Speaker 13: going to land the US economy on the soft landing airstrip,

183
00:09:42,920 --> 00:09:45,520
Speaker 13: much will depend upon the CPI print. I think that

184
00:09:45,520 --> 00:09:48,120
Speaker 13: we're going to see on Wednesday, and whether we start

185
00:09:48,160 --> 00:09:52,480
Speaker 13: to see the bond market repricing expectations for further interest

186
00:09:52,559 --> 00:09:56,160
Speaker 13: rate moves from the US Federal Reserve. So obviously there

187
00:09:56,320 --> 00:10:00,680
Speaker 13: is central bank action with the BOJ and a central

188
00:10:00,720 --> 00:10:04,400
Speaker 13: bank in terms of their own currencies in order to

189
00:10:04,480 --> 00:10:06,840
Speaker 13: support their own economies at this point in the cycle.

190
00:10:06,880 --> 00:10:09,319
Speaker 13: But I think much will depend upon those interest rate

191
00:10:09,320 --> 00:10:10,559
Speaker 13: expectations moving forward.

192
00:10:11,800 --> 00:10:13,800
Speaker 2: They're done though, the Fed, aren't they really, Anthony?

193
00:10:14,640 --> 00:10:17,840
Speaker 13: In my expectation, I think that they are. I think

194
00:10:17,880 --> 00:10:23,240
Speaker 13: that increasingly what we are seeing is the deceleration of

195
00:10:23,280 --> 00:10:26,959
Speaker 13: that headline number and core inflation expected to print at

196
00:10:27,000 --> 00:10:31,080
Speaker 13: point two percent on Wednesday, So I think that the

197
00:10:31,120 --> 00:10:36,040
Speaker 13: Fed is probably built up sufficient time now to wait

198
00:10:36,120 --> 00:10:40,360
Speaker 13: and assess the incoming data. But that said, we are

199
00:10:40,440 --> 00:10:47,560
Speaker 13: seeing concerns around potential wage stickiness arise, and that will

200
00:10:47,600 --> 00:10:51,360
Speaker 13: be a point of contention I think amongst the FED

201
00:10:51,480 --> 00:10:55,600
Speaker 13: voters in terms of where the potential policy could move

202
00:10:55,840 --> 00:10:57,920
Speaker 13: over the course of the coming six to twelve months.

203
00:10:57,920 --> 00:11:00,360
Speaker 1: Anthony, Let's pivot to China next. Over the world weekend,

204
00:11:00,400 --> 00:11:04,079
Speaker 1: we had some credit data for August numbers better than expected.

205
00:11:04,360 --> 00:11:07,320
Speaker 1: In the week ahead, we'll get data on industrial production,

206
00:11:07,400 --> 00:11:10,920
Speaker 1: retail sales, among some other data points. And I'm wondering

207
00:11:11,160 --> 00:11:14,840
Speaker 1: how you're feeling about the story on China's economy right now.

208
00:11:15,240 --> 00:11:17,920
Speaker 1: Has a bottom been put in? Is that a bold statement?

209
00:11:18,760 --> 00:11:21,240
Speaker 13: I mean, China is a concern for us. We currently

210
00:11:21,240 --> 00:11:25,679
Speaker 13: have no direct exposure and it bears careful watching. Again,

211
00:11:25,720 --> 00:11:29,920
Speaker 13: it's very very early days there in terms of a

212
00:11:30,040 --> 00:11:34,959
Speaker 13: potential bottoming out of this cyclical downturn that we are experiencing.

213
00:11:35,320 --> 00:11:39,240
Speaker 13: There are obviously concerns around the commercial property market. We

214
00:11:39,400 --> 00:11:42,400
Speaker 13: are seeing a loosening of credit standards in order to

215
00:11:42,440 --> 00:11:45,800
Speaker 13: support the Chinese economy. But this isn't simply a case

216
00:11:46,000 --> 00:11:50,720
Speaker 13: of returning back to the infrastructure push that we saw POSTGFC.

217
00:11:51,559 --> 00:11:56,600
Speaker 13: There is obviously deteriorating demographics, but what really concerns us

218
00:11:56,679 --> 00:12:00,000
Speaker 13: is the high level of youth unemployment over twenty percent,

219
00:12:00,400 --> 00:12:03,480
Speaker 13: and that the Chinese authorities have now started to stop

220
00:12:03,840 --> 00:12:07,240
Speaker 13: printing those numbers on a regular basis. So there is

221
00:12:07,679 --> 00:12:13,720
Speaker 13: significant amount of deflatory forces that persist within the Chinese economy.

222
00:12:14,000 --> 00:12:16,520
Speaker 1: They are starting to resolve to some extent.

223
00:12:17,200 --> 00:12:22,160
Speaker 13: But that infrastructure build has increased supply capacity significantly.

224
00:12:22,679 --> 00:12:24,719
Speaker 2: Well, certainly, I mean you can't go back to the

225
00:12:24,800 --> 00:12:27,200
Speaker 2: same playbook as to get yourself out of the hole

226
00:12:27,240 --> 00:12:29,600
Speaker 2: that the Chinese economy finds it in itself, and simply

227
00:12:29,640 --> 00:12:32,960
Speaker 2: because of the depth of the country is in. But

228
00:12:33,000 --> 00:12:34,440
Speaker 2: I want to put it to you to mention the

229
00:12:34,440 --> 00:12:38,680
Speaker 2: cyclical downturn. Surely this is a structural downturn as for

230
00:12:38,720 --> 00:12:43,000
Speaker 2: the aforementioned reasons, as you said, demographics and youth unemployment

231
00:12:43,040 --> 00:12:43,440
Speaker 2: in the lake.

232
00:12:44,320 --> 00:12:47,560
Speaker 13: Yeah, so I think the days of those sort of

233
00:12:48,280 --> 00:12:51,760
Speaker 13: north of five percent growth rates that the Chinese authorities

234
00:12:51,800 --> 00:12:55,640
Speaker 13: have targeted year after year. I mean naturally, as an

235
00:12:55,679 --> 00:12:59,559
Speaker 13: economy grows wealthier, as the citizens of that nation grows wealthier,

236
00:13:00,080 --> 00:13:03,280
Speaker 13: becomes much more difficult to generate those sorts of growth rates,

237
00:13:03,320 --> 00:13:06,800
Speaker 13: particularly with declining demographics. You know, GDP growth is simply

238
00:13:07,120 --> 00:13:12,680
Speaker 13: productivity growth and population growth. And certainly post COVID it

239
00:13:12,720 --> 00:13:18,440
Speaker 13: looks like this trend of deglobalization is continuing and the

240
00:13:18,440 --> 00:13:23,000
Speaker 13: reshoring of supply chains by companies internationally is continuing. So

241
00:13:23,120 --> 00:13:26,240
Speaker 13: China will no longer likely be the significant engine of

242
00:13:26,280 --> 00:13:30,320
Speaker 13: growth that it has been. But still it is obviously

243
00:13:30,960 --> 00:13:33,960
Speaker 13: one of the world's largest economies, if not the largest economy,

244
00:13:34,520 --> 00:13:37,480
Speaker 13: and I think when it comes to the outlook for

245
00:13:37,520 --> 00:13:41,480
Speaker 13: the Chinese economy, certainly the authorities there have shown a

246
00:13:41,559 --> 00:13:46,280
Speaker 13: willingness to support growth in order to drive higher socioeconomic outcomes.

247
00:13:46,400 --> 00:13:48,600
Speaker 1: Well, let's talk in the remaining moments that we have

248
00:13:48,679 --> 00:13:51,319
Speaker 1: about the third largest economy in the world, Japan. The

249
00:13:51,400 --> 00:13:53,400
Speaker 1: niin k up this year by more than twenty four

250
00:13:53,480 --> 00:13:57,480
Speaker 1: percent in about thirty seconds, Anthony, would you be exposed

251
00:13:57,480 --> 00:14:01,280
Speaker 1: to Chinese equities at this point if you don't currently

252
00:14:01,320 --> 00:14:02,400
Speaker 1: have a position.

253
00:14:02,280 --> 00:14:03,720
Speaker 13: So I have no exposure in China.

254
00:14:03,760 --> 00:14:05,120
Speaker 1: I have no exposure to Japan.

255
00:14:05,679 --> 00:14:08,960
Speaker 13: That's not because we aren't looking for opportunities there, but

256
00:14:09,080 --> 00:14:12,000
Speaker 13: we are scouring the marketplace to see if there are

257
00:14:12,080 --> 00:14:16,840
Speaker 13: companies that can suit our investment philosophy of sustainable earnings

258
00:14:16,880 --> 00:14:19,840
Speaker 13: and sustainable business models. So we haven't got there yet.

259
00:14:20,280 --> 00:14:23,000
Speaker 13: The yen has moved a long way that's supported international

260
00:14:23,000 --> 00:14:26,640
Speaker 13: investors and he's likely to continue to do so. So

261
00:14:26,760 --> 00:14:29,560
Speaker 13: I would favor Japan over China at this point in

262
00:14:29,600 --> 00:14:30,040
Speaker 13: the cycle.

263
00:14:30,160 --> 00:14:32,440
Speaker 1: Anthony, Thank you so much for making the trip into

264
00:14:32,480 --> 00:14:35,600
Speaker 1: our studios in the Sydney Anthony Doyle, head of investment

265
00:14:35,600 --> 00:14:41,160
Speaker 1: strategy at Fire Trail Investments, joining us here on a DBA.

266
00:14:41,760 --> 00:14:44,200
Speaker 1: This is Bloomberg day Break Asia. You're a morning brief

267
00:14:44,240 --> 00:14:47,280
Speaker 1: on the stories making news from Hong Kong to Singapore

268
00:14:47,400 --> 00:14:48,240
Speaker 1: and Wall Street.

269
00:14:48,600 --> 00:14:52,280
Speaker 2: Look for us on your podcast feed every day, on Apples, Spotify,

270
00:14:52,320 --> 00:14:54,280
Speaker 2: and anywhere else you get your podcast.

271
00:14:54,800 --> 00:14:57,600
Speaker 1: You can also listen live each day on Bloomberg eleven

272
00:14:57,640 --> 00:15:00,200
Speaker 1: three to oho in New York, Bloomberg ninety nine one

273
00:15:00,280 --> 00:15:03,400
Speaker 1: in Washington, Bloomberg one oh sixty one in Boston, and

274
00:15:03,480 --> 00:15:05,600
Speaker 1: Bloomberg nine sixty in San Francisco.

275
00:15:06,160 --> 00:15:08,800
Speaker 2: Our flagship New York station is available on your Amazon

276
00:15:08,920 --> 00:15:13,880
Speaker 2: Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.

277
00:15:13,920 --> 00:15:16,920
Speaker 1: Listen coast to coast on the Bloomberg Business app, serious

278
00:15:17,120 --> 00:15:21,320
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg

279
00:15:21,360 --> 00:15:24,360
Speaker 1: dot Com. I'm Doug Chrisner and I'm Rishav Salama.

280
00:15:24,480 --> 00:15:27,000
Speaker 2: Join us again tomorrow for all the news you need

281
00:15:27,040 --> 00:15:29,960
Speaker 2: to start your day right here on Bloomberg day Break

282
00:15:29,960 --> 00:15:32,680
Speaker 2: Asia