1 00:00:02,480 --> 00:00:06,800 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:09,640 --> 00:00:12,840 Speaker 2: This is the Bloomberg Daybreak Asia podcast. I'm Doug Krisner. 3 00:00:12,920 --> 00:00:15,400 Speaker 2: You can join Brian Curtis and myself for the stories, 4 00:00:15,440 --> 00:00:18,520 Speaker 2: making news and moving markets in the APAC region. You 5 00:00:18,600 --> 00:00:21,439 Speaker 2: can subscribe to the show anywhere you get your podcast 6 00:00:21,520 --> 00:00:24,919 Speaker 2: and always on Bloomberg Radio, the Bloomberg Terminal, and the 7 00:00:24,920 --> 00:00:26,120 Speaker 2: Bloomberg Business app. 8 00:00:26,760 --> 00:00:29,760 Speaker 3: We are joined on the program by Mark Heppenstahl, President 9 00:00:29,800 --> 00:00:33,839 Speaker 3: and CIO of Penn Mutual Asset Management. Mark, thanks very 10 00:00:33,920 --> 00:00:37,239 Speaker 3: much for boom with us over the weekend. As it were, well, 11 00:00:37,280 --> 00:00:39,159 Speaker 3: as we heard there from Doug earlier, it's a really 12 00:00:39,200 --> 00:00:42,120 Speaker 3: big week for earnings this week with a lot of 13 00:00:42,120 --> 00:00:45,800 Speaker 3: the biggest tech companies reporting. We've got three key central 14 00:00:45,800 --> 00:00:49,280 Speaker 3: banks and then a big jobs report coming up on Friday. 15 00:00:50,080 --> 00:00:54,160 Speaker 3: In terms of the earnings, first companies were rewarded for 16 00:00:54,200 --> 00:00:58,440 Speaker 3: their AI spending and then when appleportor when Alphabet reported, 17 00:00:58,480 --> 00:01:01,480 Speaker 3: they were castigated. So what's it going to be this week? 18 00:01:03,240 --> 00:01:06,480 Speaker 1: Well, that is a very good question, you know. I 19 00:01:06,520 --> 00:01:09,360 Speaker 1: will say the bar has been set very very high, 20 00:01:09,400 --> 00:01:11,480 Speaker 1: and I think you know, as you mentioned the performance 21 00:01:11,520 --> 00:01:15,319 Speaker 1: of Tesla and Alphabet after earnings last week was an 22 00:01:15,360 --> 00:01:17,840 Speaker 1: indication that in some cases, maybe the bar has just 23 00:01:17,880 --> 00:01:20,960 Speaker 1: been set a little bit too high. But you know, 24 00:01:21,000 --> 00:01:23,440 Speaker 1: it does seem as though, you know, the question on 25 00:01:23,520 --> 00:01:26,160 Speaker 1: how some of these companies are basically going to monetize 26 00:01:26,720 --> 00:01:31,000 Speaker 1: the technology around AI has yet to be decided, and 27 00:01:31,080 --> 00:01:32,920 Speaker 1: you know, clearly in Vidia is the one that I 28 00:01:32,920 --> 00:01:36,000 Speaker 1: would say is most important in terms of you know, 29 00:01:36,080 --> 00:01:38,120 Speaker 1: just sort of its impact so far this year. So 30 00:01:38,600 --> 00:01:41,760 Speaker 1: you know, my guess is that you know, you may 31 00:01:41,840 --> 00:01:45,520 Speaker 1: see a similar reaction this week after earnings or release 32 00:01:46,160 --> 00:01:48,040 Speaker 1: because I just don't really think there's going to be 33 00:01:48,040 --> 00:01:51,320 Speaker 1: a huge upside yet from these companies with AI. 34 00:01:51,600 --> 00:01:54,560 Speaker 2: So how are you feeling generally about the thesis that 35 00:01:54,600 --> 00:01:59,080 Speaker 2: this is a transformative technology, there's no turning back from it, 36 00:01:59,160 --> 00:02:02,760 Speaker 2: and we really don't fully understand what it's capable of doing. 37 00:02:03,080 --> 00:02:06,400 Speaker 2: But that's not to say that it won't have significant 38 00:02:06,480 --> 00:02:09,840 Speaker 2: lasting impact. How are you on the thesis now? 39 00:02:10,080 --> 00:02:10,320 Speaker 3: I do. 40 00:02:10,520 --> 00:02:13,519 Speaker 1: I do think that you know, all of the technology 41 00:02:13,560 --> 00:02:16,560 Speaker 1: people I speak with, you know, are are amazed at 42 00:02:16,560 --> 00:02:21,120 Speaker 1: how transformative AI is and has the potential to be. So, 43 00:02:21,320 --> 00:02:23,880 Speaker 1: you know, I do think that the impact is going 44 00:02:23,960 --> 00:02:27,600 Speaker 1: to be significant, but I do think it is, you know, 45 00:02:28,040 --> 00:02:31,000 Speaker 1: somewhat of a long term proposition. So I think again, 46 00:02:31,120 --> 00:02:34,040 Speaker 1: trying to gauge some of the short term earnings impacts 47 00:02:34,080 --> 00:02:38,280 Speaker 1: on certain companies resulting from AI is it's probably a 48 00:02:38,280 --> 00:02:40,799 Speaker 1: little bit too early for that. But again, I do 49 00:02:40,840 --> 00:02:43,239 Speaker 1: think that the impact is going to be meaningful in 50 00:02:43,320 --> 00:02:44,200 Speaker 1: the US economy. 51 00:02:44,600 --> 00:02:47,359 Speaker 3: So we've had this churn in the marketplace, and we've 52 00:02:47,360 --> 00:02:50,600 Speaker 3: had the gap shrink quite significantly between the equal weight 53 00:02:50,720 --> 00:02:53,560 Speaker 3: and the cap weighted S and P. I guess it's 54 00:02:53,560 --> 00:02:56,239 Speaker 3: a good thing to many people out there, But will 55 00:02:56,240 --> 00:02:58,040 Speaker 3: it continue? 56 00:02:58,680 --> 00:03:01,280 Speaker 1: Well, I will say, you know, I think we've been 57 00:03:01,280 --> 00:03:05,240 Speaker 1: waiting for some type of a broadening out just given 58 00:03:05,280 --> 00:03:09,240 Speaker 1: the heavy, heavy nature of the performance impact of the 59 00:03:09,280 --> 00:03:11,680 Speaker 1: MAG seven on the S and P five hundred and 60 00:03:11,680 --> 00:03:14,240 Speaker 1: some other indices as well. So you know, I do 61 00:03:14,360 --> 00:03:18,760 Speaker 1: think that it's likely to keep broadening out here for 62 00:03:18,800 --> 00:03:20,840 Speaker 1: a while. And again, as I mentioned, and I think 63 00:03:20,880 --> 00:03:24,320 Speaker 1: if there is somewhat of a muted response to earnings 64 00:03:24,360 --> 00:03:26,480 Speaker 1: this week from the MAG seven, I think that that's 65 00:03:26,720 --> 00:03:29,120 Speaker 1: less likely to be the story. And I would say, 66 00:03:29,400 --> 00:03:31,560 Speaker 1: you know, I do think that if the S and 67 00:03:31,639 --> 00:03:34,720 Speaker 1: P and other indices are going to March to record highs. 68 00:03:34,920 --> 00:03:36,920 Speaker 1: I think it's going to take a lot of other 69 00:03:36,960 --> 00:03:38,680 Speaker 1: companies helping with a lift there. 70 00:03:38,720 --> 00:03:41,600 Speaker 2: Now, so we have a FED meeting, conventional wisdom here 71 00:03:41,680 --> 00:03:43,560 Speaker 2: is that they're going to set the stage. They being 72 00:03:43,800 --> 00:03:47,000 Speaker 2: FED policy members for a rate cut in September maybe 73 00:03:47,040 --> 00:03:50,600 Speaker 2: twenty five basis points. How are you feeling about easier 74 00:03:50,640 --> 00:03:53,920 Speaker 2: monetary policy providing a nice push for the equity market 75 00:03:53,960 --> 00:03:56,400 Speaker 2: from now to the end of the year. Is that 76 00:03:56,480 --> 00:03:58,400 Speaker 2: how you see it playing out? As there are some 77 00:03:58,480 --> 00:04:01,440 Speaker 2: downside risk that we're not talking about. 78 00:04:02,800 --> 00:04:06,360 Speaker 1: Well, it has been very interesting to see how much, 79 00:04:06,600 --> 00:04:09,000 Speaker 1: you know, the front end of the Yuel curve has reacted. 80 00:04:09,000 --> 00:04:13,800 Speaker 1: We've seen a significant steepening of the Yuel curve really 81 00:04:13,840 --> 00:04:16,040 Speaker 1: for the past month and month, month and a half 82 00:04:16,120 --> 00:04:18,480 Speaker 1: or so. So, you know, it does seem as though, 83 00:04:18,680 --> 00:04:21,560 Speaker 1: you know, the bond market has had sort of this 84 00:04:21,640 --> 00:04:24,640 Speaker 1: inclination to try to front run the FED with UH 85 00:04:24,680 --> 00:04:27,360 Speaker 1: with three cuts, you know, so far when they front 86 00:04:27,440 --> 00:04:30,039 Speaker 1: front run FEN, they've actually gone too far. 87 00:04:30,320 --> 00:04:30,400 Speaker 4: So. 88 00:04:31,520 --> 00:04:34,640 Speaker 1: But but I do think, you know, the economy seems 89 00:04:34,640 --> 00:04:37,880 Speaker 1: like it's still in okay shape, you know. I I 90 00:04:37,920 --> 00:04:40,640 Speaker 1: do think the Friday jobs report is the one thing that. 91 00:04:41,120 --> 00:04:43,920 Speaker 1: You know, there are some cracks seeming to form in 92 00:04:43,960 --> 00:04:46,880 Speaker 1: the in the jobs market, so I think that's something 93 00:04:46,920 --> 00:04:48,920 Speaker 1: to watch. But as long as the job market looks 94 00:04:48,960 --> 00:04:52,520 Speaker 1: relatively relatively stable, you know, I think that the easier 95 00:04:52,520 --> 00:04:55,000 Speaker 1: money is likely to be a boost for financial assets. 96 00:04:55,040 --> 00:04:57,880 Speaker 3: Yeah, you got the some rule. It's sort of pending 97 00:04:58,040 --> 00:05:00,960 Speaker 3: or looming there, so a lot of people scared that 98 00:05:01,320 --> 00:05:05,320 Speaker 3: if that's triggered, you know that there could be trouble ahead. 99 00:05:05,400 --> 00:05:08,120 Speaker 3: So let's just generalize it more for the average person, 100 00:05:08,120 --> 00:05:10,200 Speaker 3: because you know, most average people probably don't even know 101 00:05:10,240 --> 00:05:12,880 Speaker 3: what the Saw rule is. But do you think at 102 00:05:12,920 --> 00:05:16,160 Speaker 3: the moment, given all that you are seeing, that there's 103 00:05:16,480 --> 00:05:21,560 Speaker 3: more danger for the FED falling behind here, or do 104 00:05:21,600 --> 00:05:24,480 Speaker 3: you think there's more danger in declaring victory too soon 105 00:05:24,720 --> 00:05:25,360 Speaker 3: on inflation? 106 00:05:26,960 --> 00:05:28,719 Speaker 1: Well, I will say, if you'd asked me a couple 107 00:05:28,760 --> 00:05:31,080 Speaker 1: of months ago, I would have said the danger was 108 00:05:31,080 --> 00:05:34,520 Speaker 1: declaring victory too soon. But it does seem as though, 109 00:05:35,080 --> 00:05:38,359 Speaker 1: you know, the fall in industrial commodity prices, the fall 110 00:05:38,960 --> 00:05:42,760 Speaker 1: and oil prices recently, I think is likely to keep 111 00:05:42,839 --> 00:05:47,680 Speaker 1: inflation moderating for the near future. And again, given the 112 00:05:47,680 --> 00:05:49,919 Speaker 1: Saw rule, and I will say, you know, It's amazing 113 00:05:49,960 --> 00:05:52,279 Speaker 1: how the Saw rule has become front and center in 114 00:05:52,360 --> 00:05:56,279 Speaker 1: terms of what economists and a lot of investors are 115 00:05:56,320 --> 00:05:59,440 Speaker 1: talking about in terms of economic numbers. But you know, 116 00:05:59,720 --> 00:06:01,960 Speaker 1: i'd do you think we're at a point now where 117 00:06:02,640 --> 00:06:05,880 Speaker 1: you know, the FED is likely to cut in September 118 00:06:05,960 --> 00:06:10,400 Speaker 1: unless there's a real shock to an inflation print between 119 00:06:10,400 --> 00:06:12,240 Speaker 1: now and the September meeting. And I do think that, 120 00:06:12,720 --> 00:06:15,520 Speaker 1: you know, I don't know that you know, obviously they're 121 00:06:15,520 --> 00:06:18,320 Speaker 1: going to still emphasize the need to be data dependent 122 00:06:18,440 --> 00:06:20,440 Speaker 1: at this week's meeting, but I do think that a 123 00:06:20,480 --> 00:06:24,159 Speaker 1: FED rate cut is likely boring some some surprise in 124 00:06:24,200 --> 00:06:25,280 Speaker 1: the inflation prints. 125 00:06:25,360 --> 00:06:28,560 Speaker 2: How are you feeling about geographic diversity when it comes 126 00:06:28,560 --> 00:06:31,480 Speaker 2: to investing. Are there opportunities offshore right now that are 127 00:06:31,480 --> 00:06:35,760 Speaker 2: compelling to you that may cause you to rebalance a 128 00:06:35,800 --> 00:06:37,480 Speaker 2: little away from the US? 129 00:06:38,800 --> 00:06:42,200 Speaker 1: Well, I will say the you know, the US outperformance, 130 00:06:42,360 --> 00:06:46,080 Speaker 1: US exceptionalism, you know, is part of the equation there, 131 00:06:46,120 --> 00:06:48,599 Speaker 1: and just you know clearly the importance of the mag 132 00:06:48,680 --> 00:06:50,880 Speaker 1: seven in terms of being such a big driver for 133 00:06:51,360 --> 00:06:55,400 Speaker 1: US equity market performance. But you know, I do think 134 00:06:55,520 --> 00:06:59,800 Speaker 1: ultimately diversification will still be the best form of risk management. So, 135 00:07:00,200 --> 00:07:03,760 Speaker 1: you know, I think that global diversification makes sense in 136 00:07:03,880 --> 00:07:07,560 Speaker 1: light of you know, just valuations and where things are 137 00:07:07,600 --> 00:07:10,680 Speaker 1: sitting currently. So and again we tend to we tend 138 00:07:10,720 --> 00:07:13,400 Speaker 1: to focus a lot on the credit markets, and so 139 00:07:14,360 --> 00:07:17,840 Speaker 1: again we're finding a lot of great opportunities in the 140 00:07:17,920 --> 00:07:20,920 Speaker 1: US credit markets today and being able to deploy capital 141 00:07:21,000 --> 00:07:23,360 Speaker 1: at interest rates that a couple of years ago seemed 142 00:07:23,360 --> 00:07:27,400 Speaker 1: almost impossible. So it's it's been a great opportunity set 143 00:07:27,400 --> 00:07:27,760 Speaker 1: for us. 144 00:07:28,280 --> 00:07:30,440 Speaker 3: Well, Doug mentioned that not only FED this week, but 145 00:07:30,560 --> 00:07:33,320 Speaker 3: also the Bank of England and the bo J curious 146 00:07:33,400 --> 00:07:36,440 Speaker 3: about the recent strength in the Japanese yen. How you 147 00:07:36,480 --> 00:07:39,400 Speaker 3: see that moving here in the short term and if 148 00:07:39,400 --> 00:07:41,720 Speaker 3: there's anything in Japan that really interests you. 149 00:07:43,640 --> 00:07:46,520 Speaker 1: Well, again, you know, we we are focused primarily in 150 00:07:46,560 --> 00:07:48,400 Speaker 1: the world of fixed income, and I will say, you know, 151 00:07:48,520 --> 00:07:50,960 Speaker 1: in terms of interest rates, I would say nothing is 152 00:07:51,400 --> 00:07:56,000 Speaker 1: particularly exciting in the Japanese bond market at this point. 153 00:07:56,080 --> 00:07:58,960 Speaker 1: But you know, I do think that, you know, the 154 00:07:59,080 --> 00:08:02,239 Speaker 1: unwind of the carry trade, and again talk about something 155 00:08:02,280 --> 00:08:04,320 Speaker 1: that's been long standing in the markets, and the end 156 00:08:04,320 --> 00:08:06,800 Speaker 1: carry trade has you know, been sort of a source 157 00:08:07,120 --> 00:08:09,360 Speaker 1: of profits for a very long time for a lot 158 00:08:09,400 --> 00:08:13,000 Speaker 1: of investors that use leverage, so you know, I do 159 00:08:13,080 --> 00:08:16,360 Speaker 1: think that you know, I would say likely that you know, 160 00:08:16,440 --> 00:08:19,119 Speaker 1: the end has likely bottomed at this point. 161 00:08:19,520 --> 00:08:21,280 Speaker 3: Mark, thank you for taking out the time to be 162 00:08:21,360 --> 00:08:25,360 Speaker 3: with us. Mark Heppenstahl, President and CIO of Pen Mutual 163 00:08:25,800 --> 00:08:34,440 Speaker 3: Asset Management. We're fortunate to have with us in our 164 00:08:34,480 --> 00:08:38,440 Speaker 3: studios right here in Hong Kong. Ekaterina Bigos, CIO Core 165 00:08:38,520 --> 00:08:43,400 Speaker 3: Investment Asia ex Japan at AXA Investment Managers. Ekaterina, thank 166 00:08:43,400 --> 00:08:45,360 Speaker 3: you very much for joining us. So it's a big 167 00:08:45,400 --> 00:08:48,240 Speaker 3: week this week. I'll probably leave out something, but obviously 168 00:08:48,240 --> 00:08:52,320 Speaker 3: we've got election maneuvering, We've got central banks, big tech earnings, 169 00:08:52,320 --> 00:08:56,720 Speaker 3: and also the US Jobs report? What's most important? And 170 00:08:57,080 --> 00:08:58,920 Speaker 3: feel free if you must say all of the. 171 00:08:58,880 --> 00:09:02,400 Speaker 5: Above, Yes, I mean certainly not at quite summer, but 172 00:09:02,400 --> 00:09:04,320 Speaker 5: I would say probably all of that about the important 173 00:09:04,480 --> 00:09:06,240 Speaker 5: And it depends. I guess what you're looking at. Are 174 00:09:06,240 --> 00:09:08,760 Speaker 5: you looking at movements in the markets? Are you looking 175 00:09:08,760 --> 00:09:12,920 Speaker 5: at trajectory for monetary policy? But of course in terms 176 00:09:13,000 --> 00:09:15,040 Speaker 5: of the monetary policy, and of course we have the 177 00:09:15,080 --> 00:09:19,400 Speaker 5: FED meeting on Wednesday. It's been well telegraphed and expectations 178 00:09:19,600 --> 00:09:21,760 Speaker 5: that September will be a move and this will be 179 00:09:22,080 --> 00:09:24,760 Speaker 5: for this meeting will be on pause, but with a 180 00:09:24,800 --> 00:09:28,920 Speaker 5: fairly well guided decision. And in terms of earnings, of course, 181 00:09:29,320 --> 00:09:32,280 Speaker 5: that is busy for this week with four of the 182 00:09:32,320 --> 00:09:34,800 Speaker 5: companies reporting from a distance and seven and it's been 183 00:09:34,880 --> 00:09:38,720 Speaker 5: very closely watched because those are having impact on the 184 00:09:38,760 --> 00:09:40,920 Speaker 5: performance of the tech sector, which has been one of 185 00:09:40,960 --> 00:09:45,760 Speaker 5: the most well performing sectors here to date. So suddainly 186 00:09:45,800 --> 00:09:48,400 Speaker 5: those are all important. Then we have boj and a 187 00:09:48,480 --> 00:09:50,440 Speaker 5: Bank of engl of course, which shouldn't be ignored in 188 00:09:50,480 --> 00:09:52,600 Speaker 5: terms of the global market dynamics as well. 189 00:09:52,720 --> 00:09:55,520 Speaker 2: What's your assessment of the global economy right now? 190 00:09:56,720 --> 00:10:00,040 Speaker 5: In terms of global economy, Suddenly it's slowing down. The 191 00:10:00,080 --> 00:10:03,000 Speaker 5: point here to say that the resilience is persisting, and 192 00:10:03,080 --> 00:10:04,960 Speaker 5: we'll talk about resilience. If you look at the GDP 193 00:10:05,080 --> 00:10:08,720 Speaker 5: numbers for US, we had the Q two, which certainly 194 00:10:08,760 --> 00:10:12,319 Speaker 5: says stronger than expected, beat at all expectations. And I 195 00:10:12,360 --> 00:10:15,360 Speaker 5: think this is quite relevant when it comes to the 196 00:10:15,400 --> 00:10:19,360 Speaker 5: ability for the FED to start normalizing monetary policy, but 197 00:10:19,520 --> 00:10:22,360 Speaker 5: not kind of tripping the US economy into a slowdown 198 00:10:22,400 --> 00:10:25,800 Speaker 5: or protect a slowdown. So certainly very reassuring in terms 199 00:10:25,840 --> 00:10:29,439 Speaker 5: of the growth numbers. And I think more broadly, if 200 00:10:29,440 --> 00:10:33,280 Speaker 5: you look at the global economy, largest expectations that will 201 00:10:33,320 --> 00:10:37,559 Speaker 5: stay subpart to previous growth, but say more resilient. And 202 00:10:37,600 --> 00:10:39,520 Speaker 5: again you have to break it down by emerging markets 203 00:10:39,559 --> 00:10:42,160 Speaker 5: and develop markets, but I think the strength in the 204 00:10:42,280 --> 00:10:46,120 Speaker 5: US economy is certainly reassuring to the broader. 205 00:10:46,240 --> 00:10:48,640 Speaker 3: So all of a sudden it feels pretty good again. 206 00:10:48,720 --> 00:10:51,319 Speaker 3: I mean, if you think about it, softer inflation number 207 00:10:51,400 --> 00:10:54,040 Speaker 3: is growth that's hanging in there. You've had some of 208 00:10:54,040 --> 00:10:57,040 Speaker 3: the froth that's been you know, swept off the top 209 00:10:57,120 --> 00:10:59,840 Speaker 3: of some of the big tech names, but you know, 210 00:11:00,240 --> 00:11:02,840 Speaker 3: never too far away from fear in these markets. How 211 00:11:02,840 --> 00:11:05,040 Speaker 3: do you feel at the moment if your long equity? 212 00:11:05,720 --> 00:11:08,200 Speaker 5: Yeah, And I think one point to say that in 213 00:11:08,240 --> 00:11:10,240 Speaker 5: regards to the strength and the US economy certainly has 214 00:11:10,280 --> 00:11:13,439 Speaker 5: been a surprise to the forecast that we had, particularly 215 00:11:13,440 --> 00:11:15,960 Speaker 5: in twenty twenty three when everybody was calling for a recession. 216 00:11:16,120 --> 00:11:19,720 Speaker 5: Twenty twenty four has been reprised and many have expected 217 00:11:19,720 --> 00:11:23,040 Speaker 5: that US economy is stay more resilient. That has certainly 218 00:11:23,080 --> 00:11:28,679 Speaker 5: provided support to the broader market resilience, but more importantly, 219 00:11:29,120 --> 00:11:30,920 Speaker 5: if you look at the performance of the tech sector 220 00:11:30,960 --> 00:11:34,079 Speaker 5: that has been supported by the Cheap Act that is 221 00:11:34,080 --> 00:11:36,080 Speaker 5: put in US. So fiscal stimulus has been one of 222 00:11:36,080 --> 00:11:39,199 Speaker 5: the catalysts for that support. And another one is certainly 223 00:11:39,280 --> 00:11:41,439 Speaker 5: has been the fact that the AI excitement or that 224 00:11:41,520 --> 00:11:45,280 Speaker 5: official intelligent excitement has helped the tech stock. So it's 225 00:11:45,360 --> 00:11:48,840 Speaker 5: very concentrated rally. So when we talk about what we 226 00:11:48,880 --> 00:11:52,000 Speaker 5: feel about the current state of the markets, we shouldn't 227 00:11:52,000 --> 00:11:54,280 Speaker 5: ignore that the current rally or year to date rally 228 00:11:54,280 --> 00:11:58,120 Speaker 5: has been very concentrated in that tech names. And I 229 00:11:58,120 --> 00:12:00,280 Speaker 5: think for the last couple of weeks I'll say three 230 00:12:00,400 --> 00:12:03,960 Speaker 5: weeks or so, markets have looked at the broader markets, 231 00:12:04,000 --> 00:12:07,480 Speaker 5: so me too, small cups started to rally again. Market 232 00:12:07,559 --> 00:12:11,079 Speaker 5: is looking at evaluations being attractive and also the expectations 233 00:12:11,080 --> 00:12:14,720 Speaker 5: that the US growth will stay more resilient. Again, the 234 00:12:14,800 --> 00:12:17,440 Speaker 5: question whatever it's premature or not to be seen, but 235 00:12:17,559 --> 00:12:21,000 Speaker 5: certainly the market is attempting to put weight a little 236 00:12:21,000 --> 00:12:23,280 Speaker 5: bit more in the broader market rather than just tech. 237 00:12:23,520 --> 00:12:26,680 Speaker 2: So I hear your optimism about the global economy slowing, yes, 238 00:12:26,720 --> 00:12:30,120 Speaker 2: but resilient. Let's not forget China, And your expertise is 239 00:12:30,160 --> 00:12:33,480 Speaker 2: obviously Asia X Japan. To what extent is a weak 240 00:12:33,559 --> 00:12:36,320 Speaker 2: Chinese economy holding back the globe right now? 241 00:12:37,679 --> 00:12:40,520 Speaker 5: It certainly it does, and I would say with a 242 00:12:40,600 --> 00:12:44,040 Speaker 5: larger degree to emergy markets, and we know the dependencies 243 00:12:44,080 --> 00:12:46,160 Speaker 5: of emerging markets to China, and I think the broader 244 00:12:46,240 --> 00:12:52,160 Speaker 5: sentiment for emerging market has been closely correlated to China performance. 245 00:12:52,240 --> 00:12:55,440 Speaker 5: And certainly the growth numbers that are coming from China, 246 00:12:55,480 --> 00:12:59,640 Speaker 5: but more the broader macro data, it's certainly weak. They're 247 00:12:59,640 --> 00:13:03,520 Speaker 5: certainly a deflationary environment at the moment. Consumer confidence is week, 248 00:13:03,600 --> 00:13:07,640 Speaker 5: the investment confidence is week. The foreign investment has been weak, 249 00:13:07,720 --> 00:13:11,400 Speaker 5: so broader investment you might call appetite for investment, has 250 00:13:11,440 --> 00:13:14,800 Speaker 5: been quite depressed. And also all we've seen a resilience 251 00:13:14,840 --> 00:13:19,280 Speaker 5: in Chinese economy certainly has been an industrial production which 252 00:13:19,280 --> 00:13:23,760 Speaker 5: had been supported by directed government stimulus. And again it's 253 00:13:23,800 --> 00:13:28,439 Speaker 5: one side. It's unbalanced, quite an unbalanced resilience somewhat in 254 00:13:28,760 --> 00:13:31,320 Speaker 5: the Chinese economy, but weak resilience, if you might call it. 255 00:13:31,600 --> 00:13:33,840 Speaker 3: So this massive strength we saw in the end last 256 00:13:33,840 --> 00:13:35,920 Speaker 3: week took a little pressure off that yu on and 257 00:13:35,960 --> 00:13:39,200 Speaker 3: I think the Central Bank in China was probably somewhat 258 00:13:39,400 --> 00:13:41,760 Speaker 3: comforted by that. But you know, when we talk about 259 00:13:41,920 --> 00:13:45,720 Speaker 3: unintended consequences, it seems that there was some last week, 260 00:13:46,000 --> 00:13:48,480 Speaker 3: or there were some with strength in the end. I 261 00:13:48,480 --> 00:13:50,360 Speaker 3: don't know how much you looked at that. How much 262 00:13:50,360 --> 00:13:53,520 Speaker 3: did that strengthen the end kind of destabilized markets elsewhere 263 00:13:53,520 --> 00:13:54,040 Speaker 3: in the region. 264 00:13:55,040 --> 00:13:57,599 Speaker 5: Yeah, I would say the strength and the ends is 265 00:13:57,679 --> 00:14:01,480 Speaker 5: driven by policy expectations. I would say somewhat Bank of 266 00:14:01,600 --> 00:14:06,320 Speaker 5: Japan expectations for this week, but more importantly the expectations 267 00:14:06,320 --> 00:14:12,400 Speaker 5: that the Federal Reserve we start normalizing monetary policy in September. Certainly, 268 00:14:12,440 --> 00:14:15,920 Speaker 5: some of that reversal of the yen has led to 269 00:14:16,240 --> 00:14:18,680 Speaker 5: some of the carric traits being unwigned, and I would 270 00:14:18,720 --> 00:14:23,000 Speaker 5: say for broader Asia, I think that's a positive in 271 00:14:23,040 --> 00:14:25,120 Speaker 5: a way. Can it removes some of the attention, some 272 00:14:25,160 --> 00:14:28,640 Speaker 5: of the pressure, And certainly for Bank of Japan is 273 00:14:29,120 --> 00:14:31,960 Speaker 5: positive because they remove some of the pressure that they 274 00:14:32,000 --> 00:14:34,840 Speaker 5: have in terms of where they understands with regards to 275 00:14:34,920 --> 00:14:38,040 Speaker 5: their own monetary policy. So broadly, I think the FED 276 00:14:38,360 --> 00:14:42,800 Speaker 5: moving in September it's a positive for Japan, but also 277 00:14:42,840 --> 00:14:46,120 Speaker 5: for broader Asian economy is a positive because they relieve 278 00:14:46,160 --> 00:14:49,080 Speaker 5: some of that currency pressure. Certainly, we've seen the move 279 00:14:49,240 --> 00:14:51,920 Speaker 5: from Bank of China Bank of China moving with the 280 00:14:52,000 --> 00:14:55,160 Speaker 5: interest rate cuts, and a part of it is again 281 00:14:55,240 --> 00:14:56,440 Speaker 5: not all of it, and we can talk about it 282 00:14:56,440 --> 00:14:58,960 Speaker 5: in details we need to, but a part of it 283 00:14:59,000 --> 00:15:01,280 Speaker 5: is driven by the fact that the FED is expected 284 00:15:01,280 --> 00:15:04,480 Speaker 5: to come in September. Selling gave them that window to 285 00:15:04,560 --> 00:15:07,160 Speaker 5: accommodate on the end and to support the economy. 286 00:15:07,360 --> 00:15:10,320 Speaker 2: You were talking a moment ago about the deflationary forces 287 00:15:10,360 --> 00:15:12,400 Speaker 2: at work in China. Is there a real risk here 288 00:15:12,400 --> 00:15:16,520 Speaker 2: that this is kind of a protracted exercise that China 289 00:15:16,600 --> 00:15:19,120 Speaker 2: will not be able to rescue itself from this trap. 290 00:15:20,080 --> 00:15:22,560 Speaker 5: Yeah, there's We do see a potential risk of that 291 00:15:22,640 --> 00:15:26,680 Speaker 5: being entrenched, that weak demand being entrenched in the economy. 292 00:15:27,120 --> 00:15:29,480 Speaker 5: And I think ultimately what the market is watching for 293 00:15:29,520 --> 00:15:33,080 Speaker 5: what are the cyclical constra cyclical measures that China has 294 00:15:33,080 --> 00:15:35,720 Speaker 5: looked to put is looking to put in place to 295 00:15:35,760 --> 00:15:38,480 Speaker 5: revive the economy. If you look at all of developed 296 00:15:38,480 --> 00:15:42,800 Speaker 5: market theories and the actions that developed markets have done 297 00:15:42,840 --> 00:15:46,760 Speaker 5: in situations like that, it's to revive the economy, you 298 00:15:46,800 --> 00:15:50,440 Speaker 5: either have aggressive fiscal stimulus, or you have negative interest 299 00:15:50,520 --> 00:15:53,440 Speaker 5: rates or supportive interest rates, and China has been quite 300 00:15:53,480 --> 00:15:55,960 Speaker 5: balanced in both of those rimits, and I think more 301 00:15:56,000 --> 00:15:57,920 Speaker 5: expectations are that they will do more on the second 302 00:15:57,960 --> 00:16:00,080 Speaker 5: part of the year to support the economy, potentially to 303 00:16:00,680 --> 00:16:03,480 Speaker 5: help that transition out of that deflationary period. 304 00:16:03,640 --> 00:16:05,320 Speaker 3: Yeah. I wanted to ask you more about the carry 305 00:16:05,320 --> 00:16:07,640 Speaker 3: trade and people, you know, having to pay back in 306 00:16:07,760 --> 00:16:09,320 Speaker 3: yend so they're selling and all that, But I know 307 00:16:09,440 --> 00:16:11,960 Speaker 3: Japan is not your focus, So let me just ask 308 00:16:12,000 --> 00:16:15,120 Speaker 3: you a more general question here. Given all we've talked about, 309 00:16:15,720 --> 00:16:17,840 Speaker 3: what do you what do you feel most compelled by here? 310 00:16:17,880 --> 00:16:20,520 Speaker 3: What's the what's the single best trade out there right now? 311 00:16:20,560 --> 00:16:22,160 Speaker 3: For Ekaterina Bigos. 312 00:16:22,520 --> 00:16:24,760 Speaker 5: Yeah, And I think in terms of where we're looking 313 00:16:24,800 --> 00:16:27,080 Speaker 5: at for the second part of the year, I would 314 00:16:27,080 --> 00:16:29,600 Speaker 5: say the resilience is still going to stay in parts 315 00:16:29,600 --> 00:16:32,320 Speaker 5: of the market that we've seen so far as staying 316 00:16:32,440 --> 00:16:35,160 Speaker 5: afloat for for for from the beginning of the year, 317 00:16:35,640 --> 00:16:41,040 Speaker 5: I would say with themes that are supported by fiscal stimulus, 318 00:16:41,200 --> 00:16:44,840 Speaker 5: I've talked about technology and artificial intelligence. Of course, the 319 00:16:44,880 --> 00:16:48,280 Speaker 5: market has corrected to some degree on the back of 320 00:16:48,400 --> 00:16:51,800 Speaker 5: expectations of results around the investment that's been put in 321 00:16:51,920 --> 00:16:56,000 Speaker 5: artificial intelligence. But I would say technology theme and the 322 00:16:56,040 --> 00:17:02,040 Speaker 5: broader development, the need to advance and manufactured chips for instance, 323 00:17:02,080 --> 00:17:05,520 Speaker 5: in US will put all deploy investment and focus in 324 00:17:05,560 --> 00:17:09,240 Speaker 5: that technological sphere, so things like technology or robot technology 325 00:17:09,400 --> 00:17:11,919 Speaker 5: we're quite constructive on. So I would say themes is 326 00:17:11,960 --> 00:17:16,320 Speaker 5: what we're looking at in terms of the broader market performance. 327 00:17:16,600 --> 00:17:19,560 Speaker 5: They scope for that to rally into the second part 328 00:17:19,600 --> 00:17:22,399 Speaker 5: of the year, but we need to have the FED 329 00:17:22,760 --> 00:17:26,960 Speaker 5: well on its journey to normalize monetary policy and certainly 330 00:17:27,000 --> 00:17:29,440 Speaker 5: have a guidance of what they're going to do into 331 00:17:29,480 --> 00:17:31,200 Speaker 5: the year end and sell into the second part of 332 00:17:31,240 --> 00:17:33,080 Speaker 5: the year. So I would say more patients for the 333 00:17:33,080 --> 00:17:36,480 Speaker 5: broader market. The themes that have stayed resilient will stay, 334 00:17:36,920 --> 00:17:39,080 Speaker 5: and I would say still stay quality, still stay in 335 00:17:39,160 --> 00:17:40,680 Speaker 5: themes for the remind of the year. 336 00:17:40,840 --> 00:17:43,520 Speaker 2: Last question thirty seconds. I'm sorry, but that's all the time. 337 00:17:43,560 --> 00:17:47,480 Speaker 2: We have geopolitics now, the possibility of a Trump presidency 338 00:17:48,200 --> 00:17:50,800 Speaker 2: and a lot more in the way of tariffs. What's 339 00:17:50,840 --> 00:17:53,600 Speaker 2: in your view the fallout of something like that. 340 00:17:54,920 --> 00:17:56,919 Speaker 5: I think it's very hard to predict at the moment 341 00:17:57,119 --> 00:17:59,800 Speaker 5: what a potential fallout. I mean, the theories say that 342 00:18:00,040 --> 00:18:04,240 Speaker 5: when you implement tariffs. The implications for the country that 343 00:18:05,040 --> 00:18:08,680 Speaker 5: or the country the receiver of those tariffs is deflationary. 344 00:18:08,800 --> 00:18:11,320 Speaker 5: So Asia or China will have depression. The degree of 345 00:18:11,320 --> 00:18:14,720 Speaker 5: that deflation is certainly to be decided and potentially inflationary 346 00:18:14,760 --> 00:18:17,480 Speaker 5: for the receiver for the country that is putting the tariffs. 347 00:18:17,160 --> 00:18:19,520 Speaker 3: On Katerina, thank you for joining us at Katerina Bigo 348 00:18:19,720 --> 00:18:22,520 Speaker 3: Cio at X Investment Managers. 349 00:18:29,800 --> 00:18:32,919 Speaker 2: Joining us now is the Governor Eric Holcombe. He is 350 00:18:32,960 --> 00:18:38,000 Speaker 2: the Republican governor of Indiana and he is in Singapore. 351 00:18:38,080 --> 00:18:40,840 Speaker 2: He's also visiting Australia this week to explore some new 352 00:18:40,920 --> 00:18:44,640 Speaker 2: economic opportunities. Governor, welcome, thank you for joining us. 353 00:18:45,680 --> 00:18:46,480 Speaker 4: Great to be with you. 354 00:18:46,560 --> 00:18:46,760 Speaker 3: Doug. 355 00:18:47,040 --> 00:18:50,080 Speaker 2: I'm curious as to how the economy in Indiana is 356 00:18:50,119 --> 00:18:54,040 Speaker 2: performing and how that may correlate with the specific goals 357 00:18:54,040 --> 00:18:55,359 Speaker 2: that you have during this trip. 358 00:18:57,080 --> 00:19:03,040 Speaker 4: Well, we're experiencing and really president amount of momentum positive 359 00:19:03,240 --> 00:19:07,320 Speaker 4: momentum currently right now. When you think about a state 360 00:19:07,359 --> 00:19:11,600 Speaker 4: like Indiana, a small state relatively speaking in America. Three 361 00:19:11,680 --> 00:19:15,760 Speaker 4: years ago we had a record high capital investment into 362 00:19:15,840 --> 00:19:19,120 Speaker 4: our state. It was about eight point seven billion. Two 363 00:19:19,240 --> 00:19:21,959 Speaker 4: years ago we were over twenty billion. Last year we 364 00:19:21,960 --> 00:19:26,679 Speaker 4: were a twenty eight point seven billion, and over twenty 365 00:19:26,680 --> 00:19:29,240 Speaker 4: billion of that twenty eight point seven billion was foreign 366 00:19:29,240 --> 00:19:32,800 Speaker 4: direct investment. And so for a state like Indiana that's 367 00:19:32,840 --> 00:19:35,960 Speaker 4: the number one manufacturing state per capita in the country. 368 00:19:36,520 --> 00:19:39,240 Speaker 4: We have five autoems make over eighty percent of the 369 00:19:39,359 --> 00:19:45,520 Speaker 4: RBS make engines, transmissions, ELI Lilly's headquartered in Indiana, zimmer 370 00:19:45,560 --> 00:19:48,800 Speaker 4: Bio met and on and on. So life science is 371 00:19:48,800 --> 00:19:53,120 Speaker 4: also a powerful punch. We have supply chains, tier ones, 372 00:19:53,119 --> 00:19:56,240 Speaker 4: tier twos, tier threes all over the world, and it 373 00:19:56,359 --> 00:19:59,840 Speaker 4: requires us to show up if we want to keep this, 374 00:20:00,119 --> 00:20:00,960 Speaker 4: then I'm going forward. 375 00:20:01,200 --> 00:20:03,760 Speaker 3: So so things sound pretty good. That's not exactly the 376 00:20:03,840 --> 00:20:07,360 Speaker 3: narrative that we hear at the national level from Republicans, 377 00:20:07,400 --> 00:20:09,800 Speaker 3: But we didn't want to talk politics so much in this. 378 00:20:09,880 --> 00:20:12,240 Speaker 3: We really did want to focus on track. I'm curious 379 00:20:12,600 --> 00:20:16,160 Speaker 3: at the governor level, how much pressure are you feeling 380 00:20:16,440 --> 00:20:19,480 Speaker 3: from business folks that you talk to to either increase 381 00:20:20,040 --> 00:20:22,240 Speaker 3: or decrease business with China. 382 00:20:24,160 --> 00:20:27,480 Speaker 4: Now, what we're hearing are folks that wake up every 383 00:20:27,560 --> 00:20:32,160 Speaker 4: day that are trying to grow their enterprises, their businesses, 384 00:20:32,800 --> 00:20:37,360 Speaker 4: that want certainty and predictability and stability and continuity and 385 00:20:37,400 --> 00:20:39,760 Speaker 4: for a stay like Indiana, that's what that's what we offer, 386 00:20:39,840 --> 00:20:42,240 Speaker 4: that's our that's our in our DNA, so to speak. 387 00:20:42,640 --> 00:20:45,640 Speaker 4: And so for when you look at, you know, all 388 00:20:45,720 --> 00:20:50,560 Speaker 4: these geopolitical tensions around the world, be it China our 389 00:20:50,680 --> 00:20:54,960 Speaker 4: number one fierce competitor on the global stage, obviously, thinking 390 00:20:55,000 --> 00:20:57,880 Speaker 4: about Russia and NATO, thinking about Israel that I heard 391 00:20:57,920 --> 00:21:02,720 Speaker 4: you all just tea up, thinking about cyber attacks, thinking 392 00:21:02,760 --> 00:21:10,040 Speaker 4: about folks who are wanting to de globalize. We hear 393 00:21:10,160 --> 00:21:12,840 Speaker 4: from folks that want to d risk, that want to 394 00:21:12,880 --> 00:21:16,760 Speaker 4: make sure that their supply chains are just in case 395 00:21:17,680 --> 00:21:21,399 Speaker 4: as much as just in time. And so that's where 396 00:21:21,520 --> 00:21:24,479 Speaker 4: states like Indiana, everywhere I go, I always ask who 397 00:21:24,560 --> 00:21:27,320 Speaker 4: I meet with, how many governors have been here this year? 398 00:21:27,680 --> 00:21:30,560 Speaker 4: And just because it's so competitive for states to take 399 00:21:30,600 --> 00:21:35,080 Speaker 4: the lead. Obviously, our federal government, Department of State, Department 400 00:21:35,119 --> 00:21:40,480 Speaker 4: of Defense, etc. Have the responsibility and authority to be 401 00:21:40,600 --> 00:21:45,160 Speaker 4: making sure there's free infair trade enforced around the world, 402 00:21:45,280 --> 00:21:47,520 Speaker 4: but it's up to states to take the lead to 403 00:21:47,680 --> 00:21:52,359 Speaker 4: grow the economies on their main streets all throughout the country. 404 00:21:52,359 --> 00:21:54,000 Speaker 4: And so that's why we're so hyperactive. 405 00:21:54,160 --> 00:21:56,600 Speaker 2: So do you think that You've had a reliable, a 406 00:21:56,640 --> 00:21:59,640 Speaker 2: good partner in the federal government here as you more 407 00:21:59,720 --> 00:22:01,960 Speaker 2: move forward to try to meet these goals. 408 00:22:03,680 --> 00:22:09,600 Speaker 4: Well, I think they've almost have an impossible job. They 409 00:22:09,920 --> 00:22:12,520 Speaker 4: when you wake up every single day and have to 410 00:22:12,560 --> 00:22:16,280 Speaker 4: be everywhere in the world, I'm reminded that we're not unique. 411 00:22:16,920 --> 00:22:21,119 Speaker 4: You just mentioned Venezuela, you mentioned Israel. Everywhere that we 412 00:22:21,160 --> 00:22:27,240 Speaker 4: have gone there seems to be concern about how to grow, 413 00:22:27,520 --> 00:22:30,960 Speaker 4: not only not only with the geopolitical tensions, but also 414 00:22:31,000 --> 00:22:34,080 Speaker 4: with workforce development, so many other issues that go alongside 415 00:22:34,480 --> 00:22:38,720 Speaker 4: with it. But we seek to partner with the federal government, 416 00:22:38,800 --> 00:22:43,040 Speaker 4: no matter the administration, on interest that will benefit the 417 00:22:43,080 --> 00:22:46,560 Speaker 4: state of Indiana. I tend to focus on my home 418 00:22:46,600 --> 00:22:50,400 Speaker 4: state and not others, unless it's to see how close 419 00:22:50,440 --> 00:22:51,760 Speaker 4: they are nipping at my heels. 420 00:22:52,280 --> 00:22:55,080 Speaker 3: Governor, you're nine days in on this trip, so you've 421 00:22:55,119 --> 00:22:58,119 Speaker 3: you've gotten an earful I'm sure from people that you've 422 00:22:58,440 --> 00:23:02,240 Speaker 3: sat down with. I'm curious what you're hearing from Australia 423 00:23:02,520 --> 00:23:06,239 Speaker 3: and and and countries in as you about. You know 424 00:23:06,280 --> 00:23:09,120 Speaker 3: how they don't want to get caught up, got caught 425 00:23:09,160 --> 00:23:10,560 Speaker 3: between the US and China. 426 00:23:11,680 --> 00:23:15,480 Speaker 4: Yeah, what what I'm hearing is and it's it's crystal clear, 427 00:23:15,920 --> 00:23:20,160 Speaker 4: is that the they have some of the brightest minds 428 00:23:20,640 --> 00:23:30,560 Speaker 4: on planet Earth and a very entrepreneurial spirit and financing 429 00:23:30,760 --> 00:23:34,400 Speaker 4: to go along with it. What they need are places 430 00:23:34,440 --> 00:23:38,520 Speaker 4: to scale up. And when you look at the consumer 431 00:23:38,600 --> 00:23:42,919 Speaker 4: base the clientele that America offers, there's nowhere else on 432 00:23:43,040 --> 00:23:47,920 Speaker 4: Earth that compares. And so for that's where again I'm 433 00:23:47,960 --> 00:23:51,920 Speaker 4: selfish and self centered. I'm looking at what's Indiana's role, 434 00:23:51,960 --> 00:23:56,400 Speaker 4: what's my what's our state's cut in all this potential growth? Yeah? 435 00:23:56,480 --> 00:23:58,879 Speaker 4: Bring it, bring it home back home in Indiana again. 436 00:23:59,359 --> 00:24:02,720 Speaker 4: And so it's an exciting time to be out there, 437 00:24:02,760 --> 00:24:04,640 Speaker 4: and you have to be able to deal with all 438 00:24:04,680 --> 00:24:08,000 Speaker 4: the distractions and you can fill in the blank with 439 00:24:08,760 --> 00:24:15,280 Speaker 4: an election, an invasion, and they're more obviously than just distractions. 440 00:24:15,920 --> 00:24:18,040 Speaker 4: But you have to deal with those issues of the 441 00:24:18,200 --> 00:24:23,920 Speaker 4: day from a federal perspective. But we states can't afford 442 00:24:23,960 --> 00:24:26,440 Speaker 4: to take a day off just because of a new 443 00:24:26,760 --> 00:24:28,880 Speaker 4: or different issue that we haven't faced before. 444 00:24:29,000 --> 00:24:31,000 Speaker 2: Have you had a nation I'm sorry to interrupt there. 445 00:24:31,040 --> 00:24:33,560 Speaker 2: I'm curious as to whether you've had a conversation or 446 00:24:33,600 --> 00:24:37,359 Speaker 2: an experience on this trip that may have created or 447 00:24:37,480 --> 00:24:40,680 Speaker 2: sparked a new way of thinking about solving a problem. 448 00:24:41,320 --> 00:24:45,200 Speaker 2: Talk about creativity of this trip, I mean anything new? 449 00:24:45,480 --> 00:24:49,800 Speaker 4: Yeah, sure. What has really struck me on this trip 450 00:24:49,840 --> 00:24:54,760 Speaker 4: and this is my twenty fourth trip international trip since 451 00:24:54,800 --> 00:25:01,719 Speaker 4: I've been governor. But what's really struck me is is 452 00:25:02,040 --> 00:25:05,840 Speaker 4: the number of projects that we are working on, maybe 453 00:25:05,840 --> 00:25:08,679 Speaker 4: at Purdue University or Notre Dame or Indiana or Roseholman 454 00:25:09,240 --> 00:25:12,240 Speaker 4: back home one of our companies, a challenge that we're 455 00:25:12,240 --> 00:25:16,560 Speaker 4: addressing that they are as well. We were in Swinburne 456 00:25:16,680 --> 00:25:21,919 Speaker 4: University in Melbourne a couple few days ago and they 457 00:25:22,000 --> 00:25:26,679 Speaker 4: were working on what happens when two black holes collide 458 00:25:26,960 --> 00:25:29,240 Speaker 4: and how do you harness the energy out in the 459 00:25:29,320 --> 00:25:33,359 Speaker 4: universe when that occurs. They were also working on how 460 00:25:33,440 --> 00:25:39,600 Speaker 4: you charge an electric semi truck as it's driving down 461 00:25:39,640 --> 00:25:43,680 Speaker 4: the interstate. Well, we're working on those things back in 462 00:25:43,680 --> 00:25:48,439 Speaker 4: Indiana as well, and now how we can or you know, 463 00:25:48,480 --> 00:25:54,000 Speaker 4: we visited Treelix, who's partnering with Eli Lilly. 464 00:25:54,480 --> 00:25:57,159 Speaker 2: Governor will leave it there. Governor Eric Holcombe from the 465 00:25:57,200 --> 00:25:58,800 Speaker 2: State of Indiana joining us here. 466 00:26:00,800 --> 00:26:04,199 Speaker 3: This is the Bloomberg Daybreak Asia podcast, bringing to the 467 00:26:04,280 --> 00:26:07,760 Speaker 3: stories making news and moving markets in the Asia Pacific. 468 00:26:08,000 --> 00:26:11,120 Speaker 3: Visit the Bloomberg Podcast channel on YouTube to get more 469 00:26:11,160 --> 00:26:14,960 Speaker 3: episodes of this and other shows from Bloomberg. Subscribe to 470 00:26:15,000 --> 00:26:18,840 Speaker 3: the podcast on Apple, Spotify, or anywhere else you listen 471 00:26:19,080 --> 00:26:22,280 Speaker 3: and always on Bloomberg Radio, the Bloomberg Terminal, and the 472 00:26:22,320 --> 00:26:23,560 Speaker 3: Bloomberg Business app.