1 00:00:00,160 --> 00:00:10,480 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg 2 00:00:10,520 --> 00:00:13,720 Speaker 1: Daybreak Aisia podcast. I'm Doug Krisner. You can join Brian 3 00:00:13,800 --> 00:00:16,640 Speaker 1: Curtis and myself for the stories, making news and moving 4 00:00:16,680 --> 00:00:19,560 Speaker 1: markets in the APAC region. You can subscribe to the 5 00:00:19,600 --> 00:00:23,080 Speaker 1: show anywhere you get your podcast and always on Bloomberg Radio, 6 00:00:23,320 --> 00:00:26,040 Speaker 1: the Bloomberg Terminal, and the Bloomberg Business. 7 00:00:25,800 --> 00:00:30,040 Speaker 2: App after the bill. Today, Netflix posted its best start 8 00:00:30,120 --> 00:00:33,400 Speaker 2: to the year since twenty twenty, Netflix adding nine point 9 00:00:33,440 --> 00:00:36,280 Speaker 2: three three million customers in the first quarter of twenty 10 00:00:36,280 --> 00:00:40,000 Speaker 2: twenty four. That's nearly double the average estimate from analysts. 11 00:00:40,400 --> 00:00:43,680 Speaker 2: Despite that, Netflix shares we're down about five percent in 12 00:00:43,800 --> 00:00:47,479 Speaker 2: late trading. The streamer reported a weaker than expected second 13 00:00:47,560 --> 00:00:51,120 Speaker 2: quarter revenue forecast. Joining us now for some discussion of 14 00:00:51,159 --> 00:00:55,320 Speaker 2: this is Gita Ranganathan, Bloomberg Intelligence US media analyst, to 15 00:00:55,360 --> 00:00:59,840 Speaker 2: take a closer look. So, Gita, Netflix, Well, pretty strong rebound, 16 00:00:59,880 --> 00:01:03,160 Speaker 2: I think you have to say, albeit with a few qualifications. 17 00:01:03,440 --> 00:01:06,840 Speaker 2: On balance, how do you read these results? 18 00:01:06,959 --> 00:01:10,840 Speaker 3: Very very strong results, without a doubt. We're seeing really 19 00:01:10,840 --> 00:01:14,240 Speaker 3: good momentum when it comes to the subscribers. And the 20 00:01:14,240 --> 00:01:16,319 Speaker 3: big story of course for Netflix is that they are 21 00:01:16,360 --> 00:01:20,240 Speaker 3: trying to balance subscriber growth along with their financial metrics. 22 00:01:20,240 --> 00:01:23,720 Speaker 3: So the most important metrics here being you know, revenue growth, 23 00:01:24,440 --> 00:01:28,480 Speaker 3: and they were guiding to or they were targeting rather 24 00:01:28,680 --> 00:01:32,959 Speaker 3: double digit revenue gains, which they delivered and will continue 25 00:01:32,959 --> 00:01:34,959 Speaker 3: to deliver it through the rest of the year. And 26 00:01:35,000 --> 00:01:37,880 Speaker 3: then of course is profitability. They're one of the only 27 00:01:37,959 --> 00:01:42,440 Speaker 3: streamers right now to have very very strong profitability metrics, 28 00:01:43,360 --> 00:01:46,160 Speaker 3: and you know, they actually upped their guidance when it 29 00:01:46,200 --> 00:01:50,240 Speaker 3: came to operating margins. So on balance, a very very 30 00:01:50,280 --> 00:01:53,480 Speaker 3: strong report card, although you did point out the slightly 31 00:01:53,560 --> 00:01:57,000 Speaker 3: muted outlook, which is why we're seeing the share reaction. 32 00:01:57,720 --> 00:02:00,760 Speaker 1: Gaeta, I'm trying to understand whether or not this growth 33 00:02:00,840 --> 00:02:05,520 Speaker 1: is being powered by original programming or crack down on 34 00:02:05,840 --> 00:02:07,320 Speaker 1: password sharing, which is it? 35 00:02:08,520 --> 00:02:09,400 Speaker 4: So it really is. 36 00:02:09,480 --> 00:02:13,880 Speaker 3: I think the biggest driver of this subscriber momentum that 37 00:02:13,919 --> 00:02:17,480 Speaker 3: we're seeing is really the password sharing initiative. Netflix had 38 00:02:17,520 --> 00:02:22,839 Speaker 3: initially identified about one hundred million global households that we're 39 00:02:22,919 --> 00:02:24,960 Speaker 3: not paying for the service, and we know that they've 40 00:02:25,000 --> 00:02:29,040 Speaker 3: cracked down on password sharing across all of their global markets, 41 00:02:29,600 --> 00:02:31,960 Speaker 3: so this is really the biggest driver. They haven't exactly 42 00:02:32,160 --> 00:02:36,280 Speaker 3: outlined how much they've captured or how much is left. 43 00:02:36,960 --> 00:02:40,280 Speaker 3: But you know, just kind of given the guidance and 44 00:02:40,320 --> 00:02:43,440 Speaker 3: the fact that they alluded to, you know, much slower 45 00:02:43,480 --> 00:02:45,959 Speaker 3: subscriber growth in the second half of twenty twenty four 46 00:02:46,040 --> 00:02:48,640 Speaker 3: versus the first half, suggests to us that, you know, 47 00:02:48,720 --> 00:02:52,919 Speaker 3: the positive tailwinds from this password sharing crackdown will start 48 00:02:52,960 --> 00:02:54,680 Speaker 3: to fade pretty soon. 49 00:02:56,280 --> 00:03:00,520 Speaker 2: Now. Netflix shares were up seventy one percent since October, so, 50 00:03:00,800 --> 00:03:03,800 Speaker 2: to be fair, a five percent pullback is probably not 51 00:03:04,280 --> 00:03:08,280 Speaker 2: very likely an indictment. It was a good quarter, and 52 00:03:08,360 --> 00:03:10,959 Speaker 2: you said that, but it's important to talk about the 53 00:03:11,000 --> 00:03:16,120 Speaker 2: qualifications too, and Doug raised one. Perhaps another might be 54 00:03:16,280 --> 00:03:18,880 Speaker 2: that it's going to the company is going to stop 55 00:03:18,919 --> 00:03:21,840 Speaker 2: reporting the number of subscribers. Now, that would raise a 56 00:03:21,840 --> 00:03:25,080 Speaker 2: few questions among some what do you see as the 57 00:03:25,120 --> 00:03:25,920 Speaker 2: reasons for that? 58 00:03:26,080 --> 00:03:26,760 Speaker 4: What are you hearing? 59 00:03:28,520 --> 00:03:32,239 Speaker 3: Yeah, so, I think what they said is that there 60 00:03:32,280 --> 00:03:35,760 Speaker 3: really are so many moving parts to this story. Right 61 00:03:35,800 --> 00:03:38,800 Speaker 3: in the in the early days of growth, it was 62 00:03:38,840 --> 00:03:42,080 Speaker 3: really just a very very kind of a plain vanilla story. 63 00:03:42,120 --> 00:03:44,520 Speaker 3: You had more subscribers, you charge them whatever amount you 64 00:03:44,520 --> 00:03:46,480 Speaker 3: were charging them, and you know, you kind of had 65 00:03:46,520 --> 00:03:49,600 Speaker 3: this whole growth model. It's kind of become much more 66 00:03:49,680 --> 00:03:53,400 Speaker 3: nuanced right now because we're kind of reaching this very 67 00:03:53,480 --> 00:03:58,200 Speaker 3: mature stage in the Netflix narrative, and they are they 68 00:03:58,240 --> 00:04:00,880 Speaker 3: have a lot of growth levers right Aizing is is 69 00:04:00,920 --> 00:04:02,880 Speaker 3: a huge lever that is going to kind of start 70 00:04:02,960 --> 00:04:07,280 Speaker 3: ramping up. They're probably going to start introducing new plans 71 00:04:07,320 --> 00:04:10,440 Speaker 3: at different price points in different countries, and so it's 72 00:04:10,520 --> 00:04:13,040 Speaker 3: kind of becoming harder and harder for them to parse 73 00:04:13,120 --> 00:04:15,240 Speaker 3: out everything. And I think that is one of the 74 00:04:15,280 --> 00:04:17,560 Speaker 3: reasons why they are suggesting that they don't want to 75 00:04:17,600 --> 00:04:20,400 Speaker 3: be tied down to the subscriber metric because we know 76 00:04:20,480 --> 00:04:23,159 Speaker 3: that every time Netflix reports, you know, the subscriber numbers, 77 00:04:23,200 --> 00:04:25,920 Speaker 3: there is just so much volatility and so much noise 78 00:04:26,200 --> 00:04:27,440 Speaker 3: surrounding that one number. 79 00:04:27,520 --> 00:04:30,000 Speaker 4: Now, the lack of that number is also creating a 80 00:04:30,000 --> 00:04:30,599 Speaker 4: lot of noise. 81 00:04:30,760 --> 00:04:33,440 Speaker 1: So if you look at markets outside the US and Canada, 82 00:04:33,520 --> 00:04:37,640 Speaker 1: away from North America, how is this company performing right now? Globally? 83 00:04:37,720 --> 00:04:40,640 Speaker 1: Where is the strength coming from? 84 00:04:41,000 --> 00:04:43,919 Speaker 3: The strength is really broad based. I mean, we know 85 00:04:44,000 --> 00:04:46,200 Speaker 3: that the US and Canada is a mature market. It's 86 00:04:46,200 --> 00:04:49,760 Speaker 3: almost you know, seventy seventy five percent penetrated that said it. 87 00:04:50,040 --> 00:04:52,480 Speaker 3: You know, if you looked at the first quarter numbers, 88 00:04:52,520 --> 00:04:56,359 Speaker 3: this was one of the strongest subscriber gains in the 89 00:04:56,480 --> 00:04:59,680 Speaker 3: US and Canadian markets. But you know, growth is coming 90 00:04:59,680 --> 00:05:02,039 Speaker 3: from other markets as well. If you look outside of 91 00:05:02,080 --> 00:05:04,640 Speaker 3: the US, we you know, Europe tends to be a 92 00:05:04,760 --> 00:05:08,279 Speaker 3: very very strong market, continues to perform very well. So 93 00:05:08,560 --> 00:05:12,320 Speaker 3: is Asia Pacific, which is relatively underpenetrated market. And so 94 00:05:12,320 --> 00:05:16,240 Speaker 3: there's obviously a lot of optimism for a growth upside 95 00:05:16,320 --> 00:05:18,039 Speaker 3: in many, many years to come. 96 00:05:18,200 --> 00:05:23,119 Speaker 2: Yeah, well, I'm curious in terms of revenue drivers, how's 97 00:05:23,160 --> 00:05:24,320 Speaker 2: the AD tier doing. 98 00:05:26,000 --> 00:05:29,120 Speaker 3: So the AD tier, they haven't really given us a 99 00:05:29,160 --> 00:05:31,840 Speaker 3: lot of color here other than to say that they 100 00:05:31,880 --> 00:05:33,680 Speaker 3: are building, you. 101 00:05:33,600 --> 00:05:35,440 Speaker 4: Know, the infrastructure for this business. 102 00:05:36,320 --> 00:05:39,360 Speaker 3: They do have, you know, programming which will kind of 103 00:05:39,760 --> 00:05:42,360 Speaker 3: serve that AD business well. And when I talk about 104 00:05:42,600 --> 00:05:45,680 Speaker 3: the programming catering specifically to the AD business, it's. 105 00:05:45,560 --> 00:05:46,680 Speaker 4: Really live sports. 106 00:05:47,080 --> 00:05:51,440 Speaker 3: They have a deal for WWE content starting in you know, 107 00:05:51,480 --> 00:05:54,320 Speaker 3: twenty twenty five. They're also kind of dipping a toe 108 00:05:54,560 --> 00:05:56,960 Speaker 3: dipping their toes a little bit with live events. So 109 00:05:56,960 --> 00:06:01,200 Speaker 3: they have this big boxing match between Mike Tyson and 110 00:06:01,320 --> 00:06:04,240 Speaker 3: Jake Paul which is coming up in July and that 111 00:06:04,320 --> 00:06:07,280 Speaker 3: kind of allows them to test, you know, the appetite 112 00:06:07,760 --> 00:06:10,599 Speaker 3: the market for live sports, and we think they will 113 00:06:10,640 --> 00:06:13,640 Speaker 3: become a bigger player in the live sports market. That 114 00:06:13,720 --> 00:06:18,280 Speaker 3: actually helps them scale their advertising ambitions, I think pretty significantly. 115 00:06:18,600 --> 00:06:20,840 Speaker 3: And what we are kind of projecting at Blueberg Intelligence 116 00:06:20,880 --> 00:06:23,920 Speaker 3: is that advertising will be roughly ten to fifteen percent 117 00:06:24,000 --> 00:06:26,600 Speaker 3: of their business. This is a forty five billion dollar 118 00:06:26,680 --> 00:06:30,160 Speaker 3: business in twenty twenty five, the total business, that is, 119 00:06:30,200 --> 00:06:32,200 Speaker 3: and we think advertising will be about ten to fifteen 120 00:06:32,200 --> 00:06:32,760 Speaker 3: percent of that. 121 00:06:33,000 --> 00:06:35,680 Speaker 1: Geta what do we know about what Netflix intends to 122 00:06:35,720 --> 00:06:38,599 Speaker 1: spend on new content going forward? Do they have the 123 00:06:38,680 --> 00:06:43,360 Speaker 1: pockets to continue driving on the content side, Oh. 124 00:06:43,240 --> 00:06:44,279 Speaker 4: They absolutely do. 125 00:06:44,839 --> 00:06:48,520 Speaker 3: So they've taken actually a pretty disciplined approach. So for 126 00:06:48,600 --> 00:06:52,040 Speaker 3: this year they reaffirmed their content budget of about seventeen 127 00:06:52,080 --> 00:06:55,600 Speaker 3: billion dollars. Going forward, we think it'll go up by 128 00:06:55,640 --> 00:06:58,599 Speaker 3: about you know, ten to fifteen percent. It probably will 129 00:06:58,640 --> 00:07:01,400 Speaker 3: reach about twenty billion dollars or so in the next 130 00:07:01,400 --> 00:07:05,200 Speaker 3: two years time. But again that's well within you know, 131 00:07:05,279 --> 00:07:09,720 Speaker 3: the range, and they are definitely taking a very disciplined 132 00:07:09,760 --> 00:07:12,920 Speaker 3: approach again not just with their original content, but also 133 00:07:12,920 --> 00:07:16,640 Speaker 3: they're going in more for licensed content, which tends to 134 00:07:16,680 --> 00:07:19,160 Speaker 3: be much more effective and economical. 135 00:07:20,680 --> 00:07:23,320 Speaker 2: So we see that Netflix is number one. I think 136 00:07:23,400 --> 00:07:27,720 Speaker 2: Amazon Prime is number two. Right, how are we shaking 137 00:07:27,760 --> 00:07:30,840 Speaker 2: out When we look at all of the big streamers. 138 00:07:31,280 --> 00:07:34,520 Speaker 3: Netflix clearly wins, not just in terms of subscriber numbers. 139 00:07:34,520 --> 00:07:36,960 Speaker 3: Obviously they have two hundred and seventy million subscribers. They 140 00:07:36,960 --> 00:07:39,960 Speaker 3: are the biggest streaming service across the world. But then again, 141 00:07:40,000 --> 00:07:43,680 Speaker 3: it's not just that, it's also you know, engagement, and 142 00:07:43,720 --> 00:07:46,240 Speaker 3: that is the one key metric that they kept on 143 00:07:46,360 --> 00:07:48,800 Speaker 3: talking about over and over again in you know, the 144 00:07:48,800 --> 00:07:52,200 Speaker 3: earnings call in their earnings newsletter today, because they do 145 00:07:52,320 --> 00:07:56,240 Speaker 3: have they said they have roughly half a billion people 146 00:07:56,360 --> 00:08:00,560 Speaker 3: across the globe tuning in every night into Netflix about 147 00:08:00,560 --> 00:08:02,840 Speaker 3: two two and a half hours. And so as they 148 00:08:02,960 --> 00:08:06,000 Speaker 3: have that engagement, that kind of then speaks to so 149 00:08:06,120 --> 00:08:10,400 Speaker 3: much more monetization capabilities, right, so they can increase prices, 150 00:08:11,200 --> 00:08:13,200 Speaker 3: They have a captive audience that they can. 151 00:08:13,080 --> 00:08:14,400 Speaker 4: Sell to advertisers. 152 00:08:14,680 --> 00:08:17,160 Speaker 3: So really kind of improves the growth outlook for the 153 00:08:17,200 --> 00:08:18,720 Speaker 3: company on so many different fronts. 154 00:08:18,840 --> 00:08:30,800 Speaker 2: KEETERA. Irong Andathan Bloomberg, Intelligence US media analyst, joining us 155 00:08:30,840 --> 00:08:33,800 Speaker 2: in our Studios is Harold Vanderlinda, who's head of age 156 00:08:33,840 --> 00:08:38,080 Speaker 2: specific equity strategy at HSBC. Perhaps a big sell off 157 00:08:38,160 --> 00:08:41,160 Speaker 2: is underway. We've got higher for long grown rates, investors 158 00:08:41,400 --> 00:08:44,160 Speaker 2: setting the bar pretty high, and a strong dollar. You 159 00:08:44,200 --> 00:08:45,960 Speaker 2: see it that way or do you see things as 160 00:08:46,400 --> 00:08:47,520 Speaker 2: maybe more like half full. 161 00:08:47,679 --> 00:08:52,280 Speaker 5: No, I think you're nailing the Sorry, you're hitting the 162 00:08:52,360 --> 00:08:57,120 Speaker 5: nail of that. We've gone from a scenario where by 163 00:08:57,160 --> 00:08:58,840 Speaker 5: in the beginning of the year we were talking about 164 00:08:58,880 --> 00:09:02,280 Speaker 5: maybe four, five, six, seven, I think even the one 165 00:09:02,280 --> 00:09:05,520 Speaker 5: point in terms of people that seven rate cuts. Now 166 00:09:05,760 --> 00:09:07,880 Speaker 5: what we then saw what inflation was coming down, it 167 00:09:07,960 --> 00:09:10,240 Speaker 5: flattened out, and now it's actually ticking up a little 168 00:09:10,240 --> 00:09:13,280 Speaker 5: bit and the market is really reshifting that right, So 169 00:09:13,360 --> 00:09:15,800 Speaker 5: it's saying there might be no rate cut at all, 170 00:09:15,880 --> 00:09:18,200 Speaker 5: and some people are talking about rate hike. Now that 171 00:09:18,280 --> 00:09:22,160 Speaker 5: has that changes the macro environment for Asian equities completely, right. 172 00:09:22,200 --> 00:09:25,000 Speaker 5: So we have a stronger dollar, we have higher bond 173 00:09:25,080 --> 00:09:27,320 Speaker 5: yields and all of these things, and that just doesn't 174 00:09:27,440 --> 00:09:30,199 Speaker 5: help Asian equity. So yeah, that's where that pressure is 175 00:09:30,559 --> 00:09:31,040 Speaker 5: coming from. 176 00:09:31,080 --> 00:09:32,920 Speaker 1: But if I look at the fact that this is 177 00:09:32,960 --> 00:09:36,280 Speaker 1: maybe an illustration of very strong American growth. Demand may 178 00:09:36,360 --> 00:09:38,440 Speaker 1: still be a part of the story. And if you're 179 00:09:38,640 --> 00:09:41,960 Speaker 1: an exporter anywhere in the APAC region, the outlook for 180 00:09:42,000 --> 00:09:43,760 Speaker 1: business is going to be pretty good, is it not. 181 00:09:44,400 --> 00:09:46,280 Speaker 5: Yeah, I mean that's a nice thing of equities, right, 182 00:09:46,320 --> 00:09:49,880 Speaker 5: there's always something somewhere happening. So, yeah, you're right exports. 183 00:09:49,920 --> 00:09:53,000 Speaker 5: But if you look at the totality of Asia, or 184 00:09:53,040 --> 00:09:56,040 Speaker 5: for example, at the Chinese market, the vast majority of 185 00:09:56,120 --> 00:10:00,240 Speaker 5: companies are domestic oriented companies, so they they won't be 186 00:10:00,240 --> 00:10:02,800 Speaker 5: impacted so much by the strong US. They just have 187 00:10:02,840 --> 00:10:04,920 Speaker 5: to deal with the domestic issues. But the ones that 188 00:10:05,080 --> 00:10:08,280 Speaker 5: are exporters, and most of the Asian exporters are really 189 00:10:08,280 --> 00:10:13,160 Speaker 5: in Korea, Japan, and Taiwan, they benefit on they benefit 190 00:10:13,240 --> 00:10:16,760 Speaker 5: on the demand side and on the currency side because 191 00:10:16,880 --> 00:10:18,880 Speaker 5: their currency is getting weaker and in so far they 192 00:10:18,920 --> 00:10:22,199 Speaker 5: produce something in Korea, Japan or Taiwan, it means that 193 00:10:22,240 --> 00:10:26,080 Speaker 5: they have a little bit of currency till winds as 194 00:10:26,080 --> 00:10:26,920 Speaker 5: well helps. 195 00:10:26,920 --> 00:10:28,880 Speaker 2: And we're getting chirked around a little bit with some 196 00:10:28,920 --> 00:10:30,600 Speaker 2: of the data. Like I was having a look at 197 00:10:30,600 --> 00:10:34,880 Speaker 2: the Philadelphia Fed Factory Index. You know, it topped estimates. 198 00:10:34,920 --> 00:10:37,440 Speaker 2: In fact in a very big way. The index all 199 00:10:37,520 --> 00:10:40,840 Speaker 2: the way up at fifteen point five, the survey only two, 200 00:10:42,120 --> 00:10:45,160 Speaker 2: but then price is paid, we're at twenty three versus 201 00:10:45,160 --> 00:10:47,760 Speaker 2: three point seven before. So I mean, how do you 202 00:10:47,760 --> 00:10:50,839 Speaker 2: actually digest this kind of data? Makes sense of it? 203 00:10:51,840 --> 00:10:55,160 Speaker 5: Yeah, there's a lot of data coming at us, But 204 00:10:55,520 --> 00:10:59,720 Speaker 5: I think the overriding picture is simply of just unexpected 205 00:10:59,760 --> 00:11:02,280 Speaker 5: and credible strength in the US economy. 206 00:11:01,880 --> 00:11:03,640 Speaker 2: And that leads to higher prices. 207 00:11:03,920 --> 00:11:05,760 Speaker 5: That leads to higher prices and these sort of things. 208 00:11:05,840 --> 00:11:10,079 Speaker 5: Then in addition to that, you have oil prices potentially 209 00:11:10,120 --> 00:11:12,920 Speaker 5: being a bit volatile. That I mean, the Middle East 210 00:11:12,960 --> 00:11:15,920 Speaker 5: has got all sorts of issues there, so that could 211 00:11:16,080 --> 00:11:19,480 Speaker 5: lead to oil prices. So all of these things could 212 00:11:19,520 --> 00:11:22,439 Speaker 5: fuel into higher prices. Now if you you can also 213 00:11:22,480 --> 00:11:25,439 Speaker 5: find good reasons to believe that actually these inflation numbers 214 00:11:25,480 --> 00:11:27,040 Speaker 5: will come off again and these sort of things. So 215 00:11:27,120 --> 00:11:29,000 Speaker 5: we'll have to see how it goes. But that means 216 00:11:29,040 --> 00:11:31,040 Speaker 5: that the market is just very uncertain on what the 217 00:11:31,080 --> 00:11:33,320 Speaker 5: path of inflation is and therefore what the path of 218 00:11:33,360 --> 00:11:37,520 Speaker 5: interest rates is. That creates that volatility in the stock market. 219 00:11:37,720 --> 00:11:39,480 Speaker 1: One of the things that I'm noting now is that 220 00:11:39,600 --> 00:11:41,920 Speaker 1: Japanese inflation for the month of March came in at 221 00:11:41,920 --> 00:11:44,240 Speaker 1: a monthly reading of two point seven percent. That was 222 00:11:44,280 --> 00:11:46,640 Speaker 1: a little bit below the consensus. I think that Street 223 00:11:46,679 --> 00:11:49,080 Speaker 1: was looking at two eight. But we know that Japanese 224 00:11:49,160 --> 00:11:52,320 Speaker 1: currency has been under pressure, still trading around a thirty 225 00:11:52,520 --> 00:11:57,359 Speaker 1: four year low against the greenback. What choices do policymakers 226 00:11:57,360 --> 00:11:59,840 Speaker 1: in Japan have, whether it's the Ministry of Finance can 227 00:12:00,120 --> 00:12:02,840 Speaker 1: dering intervention in the foreign exchange or the BOJ. 228 00:12:04,320 --> 00:12:06,760 Speaker 5: Yeah, this is difficult for them because the currency has 229 00:12:06,800 --> 00:12:09,480 Speaker 5: been very, very weak. And no we have that there's 230 00:12:09,480 --> 00:12:11,840 Speaker 5: this meeting in the IMF, so maybe something will be 231 00:12:11,840 --> 00:12:14,079 Speaker 5: discussed there. Who knows, but yeah, the currencies are we 232 00:12:14,240 --> 00:12:17,000 Speaker 5: and we've now seen also when Yellen was around that 233 00:12:17,040 --> 00:12:20,559 Speaker 5: the Koreans and the Japanese have publicly stated that they 234 00:12:20,600 --> 00:12:24,199 Speaker 5: feel somewhat uncomfortable with that. With that currency weakness, Well, 235 00:12:24,440 --> 00:12:27,360 Speaker 5: what can they do? The problem? The ultimate problem simply 236 00:12:27,920 --> 00:12:30,360 Speaker 5: is that they have an interest rate policy that is 237 00:12:30,400 --> 00:12:33,480 Speaker 5: still close to zero. Now you might say, yeah, they've 238 00:12:33,520 --> 00:12:36,480 Speaker 5: increased a little bit, but we're talking about minuscule changes. 239 00:12:36,520 --> 00:12:40,240 Speaker 5: So interest rates in Japan remain very very low, and 240 00:12:40,320 --> 00:12:43,360 Speaker 5: in so far the US is strong and interest rates 241 00:12:43,400 --> 00:12:45,880 Speaker 5: remain high. Yeah, that means that you have a massive 242 00:12:45,880 --> 00:12:48,920 Speaker 5: interest rate differential. And you see this with Japanese households. 243 00:12:48,960 --> 00:12:51,240 Speaker 5: They're taking their money out of Japan and putting into 244 00:12:51,280 --> 00:12:53,760 Speaker 5: the US because that's where they get five percent on 245 00:12:53,880 --> 00:12:56,640 Speaker 5: a deposits or something like that. In Japan you get nothing. 246 00:12:57,080 --> 00:13:01,320 Speaker 2: Some Japanese companies are benefiting from China growth, but you know, 247 00:13:01,400 --> 00:13:04,240 Speaker 2: it's not easy to estimate China growth. We put a 248 00:13:04,280 --> 00:13:09,040 Speaker 2: piece out on the terminal today that Bloomberg calculation suggests 249 00:13:09,080 --> 00:13:11,800 Speaker 2: that China will contribute more to global growth in the 250 00:13:11,840 --> 00:13:14,640 Speaker 2: next five years than all the G seven combined. It's 251 00:13:14,640 --> 00:13:18,559 Speaker 2: a staggering number. Yeah, twenty one percent versus twenty percent. Now, 252 00:13:18,600 --> 00:13:20,480 Speaker 2: we know that in the short term, China's kind of 253 00:13:20,480 --> 00:13:22,600 Speaker 2: gearing up for the May Day holiday and there could 254 00:13:22,600 --> 00:13:24,280 Speaker 2: be a lot of spending. How do you see China 255 00:13:24,280 --> 00:13:25,480 Speaker 2: moving here in the short term now? 256 00:13:25,800 --> 00:13:29,319 Speaker 5: Now, So, when the GDP numbers came out at the 257 00:13:29,360 --> 00:13:30,680 Speaker 5: beginning of the year, a lot of people said for 258 00:13:31,200 --> 00:13:33,480 Speaker 5: around five percent, I thought it would be much weaker. 259 00:13:34,320 --> 00:13:36,880 Speaker 5: I even know people say I can't believe that particularly number. No, 260 00:13:36,960 --> 00:13:40,319 Speaker 5: we now have more data, macro data coming out out 261 00:13:40,320 --> 00:13:43,480 Speaker 5: of China that supports that actually the economy is chucking 262 00:13:43,520 --> 00:13:48,520 Speaker 5: along reasonably a bit faster than what the market was forecasting. 263 00:13:48,840 --> 00:13:52,600 Speaker 5: But we also look at earnings. Now you can say, well, earnings, 264 00:13:52,600 --> 00:13:55,720 Speaker 5: you can accountants can fiddle around with that, but cash 265 00:13:55,760 --> 00:13:58,040 Speaker 5: earnings what we call cash flow money that you flow 266 00:13:58,080 --> 00:14:02,600 Speaker 5: in and out. There's nothing to fiddle there. And actually 267 00:14:02,960 --> 00:14:05,840 Speaker 5: it's not too bad. Yeah, the earnings growth has held 268 00:14:05,840 --> 00:14:08,320 Speaker 5: a reason to you. Oh, I've got about fifteen percent 269 00:14:08,600 --> 00:14:12,000 Speaker 5: cash earnings about eight nine percent. That's probably in line 270 00:14:12,080 --> 00:14:14,360 Speaker 5: with the macro numbers that we get. So there is 271 00:14:14,440 --> 00:14:17,440 Speaker 5: growth in China and it's probably a little bit better 272 00:14:17,480 --> 00:14:20,720 Speaker 5: than what people would have thought it would be three 273 00:14:20,840 --> 00:14:21,600 Speaker 5: or six months ago. 274 00:14:22,120 --> 00:14:24,400 Speaker 2: Harold, thanks so much for coming into our studios and 275 00:14:24,440 --> 00:14:28,080 Speaker 2: sharing your insights with this. Harold Vanderlinde, had of Asia 276 00:14:28,080 --> 00:14:39,120 Speaker 2: Pacific Equity Strategy at HSBC. Our guest is David Finnerty, 277 00:14:39,160 --> 00:14:42,440 Speaker 2: Bloomberg Effects and rates strategist, to take a closer look 278 00:14:42,440 --> 00:14:45,520 Speaker 2: at markets. So the mood has changed quite a lot 279 00:14:45,520 --> 00:14:48,120 Speaker 2: here over the past couple of weeks, David, we talked 280 00:14:48,160 --> 00:14:52,080 Speaker 2: about higher for higher for longer rates there in some 281 00:14:52,120 --> 00:14:56,040 Speaker 2: of those comments from leading fed proponents, and also the 282 00:14:56,080 --> 00:14:58,280 Speaker 2: bar seems to be pretty high now for earnings. We 283 00:14:58,320 --> 00:15:00,760 Speaker 2: saw that with a lot of the after hour is 284 00:15:00,800 --> 00:15:04,120 Speaker 2: selling and the dollar, ever stronger, is also kind of 285 00:15:04,480 --> 00:15:07,800 Speaker 2: wreaking havoc on markets. Do you see that holding for 286 00:15:07,840 --> 00:15:09,320 Speaker 2: a while that kind of mood? 287 00:15:10,160 --> 00:15:13,440 Speaker 6: I think yeah. Overall, I'd say yes. I think the 288 00:15:13,640 --> 00:15:16,640 Speaker 6: equity market, if you look at it now, is so 289 00:15:16,680 --> 00:15:18,840 Speaker 6: much good news was baked into it then I don't 290 00:15:18,840 --> 00:15:20,280 Speaker 6: think it takes a lot of bad news to just 291 00:15:20,280 --> 00:15:22,440 Speaker 6: give it a nudge down. You know, the S and 292 00:15:22,480 --> 00:15:24,280 Speaker 6: P look at run from forty two hundred up to 293 00:15:24,320 --> 00:15:28,200 Speaker 6: fifty two basically without much of a correction. So some 294 00:15:28,240 --> 00:15:31,640 Speaker 6: sort of correction is quite standard with US yields. I 295 00:15:31,680 --> 00:15:35,080 Speaker 6: think the hawkishness has heavily baked in. I think to 296 00:15:35,120 --> 00:15:37,600 Speaker 6: get more hawkish in the near to mean really it's 297 00:15:37,640 --> 00:15:40,360 Speaker 6: all data dependent now, and you really need strong, strong 298 00:15:40,440 --> 00:15:42,480 Speaker 6: data now. Having said that, we don't really have much 299 00:15:42,520 --> 00:15:45,960 Speaker 6: data out next week until the USPCE, So without that, 300 00:15:46,080 --> 00:15:48,400 Speaker 6: it's like, well, how do yours push higher? And actually 301 00:15:48,400 --> 00:15:51,680 Speaker 6: pushing down slightly now because of Middle East tensions? So 302 00:15:51,960 --> 00:15:54,120 Speaker 6: if US shields don't push much higher, that does to 303 00:15:54,160 --> 00:15:57,320 Speaker 6: some degree limit what the dollar can do. Having said 304 00:15:57,360 --> 00:15:59,920 Speaker 6: that the dollar does benefit in a risk off sneer, 305 00:16:00,840 --> 00:16:03,760 Speaker 6: But overall, I think the moves we've seen have sort 306 00:16:03,800 --> 00:16:07,040 Speaker 6: of been baked in, and I don't think exactly, you know, 307 00:16:07,120 --> 00:16:09,960 Speaker 6: I think there's more risks to USU was pushing lower 308 00:16:09,960 --> 00:16:13,880 Speaker 6: in the terms slightly and a bit more risk off sentiment. 309 00:16:14,560 --> 00:16:16,320 Speaker 1: So when you look at the price section today, this 310 00:16:16,440 --> 00:16:18,880 Speaker 1: weakness that we were seeing in equity markets in the APAC, 311 00:16:18,920 --> 00:16:21,440 Speaker 1: where is that money rotating? Is it moving into the 312 00:16:21,520 --> 00:16:23,760 Speaker 1: US treasury market? Is it a haven bid that we're 313 00:16:23,760 --> 00:16:27,040 Speaker 1: seeing now? I'm looking accrued up nearly one point eight percent. 314 00:16:27,360 --> 00:16:30,360 Speaker 1: The dollar is stronger the end, showing a little bit 315 00:16:30,400 --> 00:16:32,520 Speaker 1: of strength here, not by much. Do you have a 316 00:16:32,560 --> 00:16:34,600 Speaker 1: sense of how this money is moving through the market 317 00:16:34,680 --> 00:16:37,160 Speaker 1: right now as we see weaker equities in the APAC? 318 00:16:37,760 --> 00:16:39,760 Speaker 6: Yeah, it's tough to say. I mean it it fluctuates. 319 00:16:40,040 --> 00:16:42,160 Speaker 6: Middle East was on the way here. I think I 320 00:16:42,200 --> 00:16:44,840 Speaker 6: saw some central headlines coming across from some of the 321 00:16:44,880 --> 00:16:48,080 Speaker 6: team saying that something may have been happening in Iran. 322 00:16:49,040 --> 00:16:51,040 Speaker 6: And if that is the case, then obviously the market 323 00:16:51,080 --> 00:16:53,200 Speaker 6: is very jittery when it comes to anything in the 324 00:16:53,240 --> 00:16:55,920 Speaker 6: Middle East at the moment. So the safe haven flows. 325 00:16:56,000 --> 00:16:58,040 Speaker 6: Is this where the money tends to go to very quickly, 326 00:16:58,400 --> 00:17:00,760 Speaker 6: you know, it's like just go ask questions lates have 327 00:17:00,880 --> 00:17:03,120 Speaker 6: is something going on in that area and obviously oil 328 00:17:03,160 --> 00:17:05,280 Speaker 6: was reacting into it as well. Obviously that could calm 329 00:17:05,320 --> 00:17:07,760 Speaker 6: down once the dust as settled, but the knee jerk 330 00:17:07,760 --> 00:17:10,560 Speaker 6: reactions always just go to the safe havens until we 331 00:17:10,720 --> 00:17:12,159 Speaker 6: have a clever picture of what's going on. 332 00:17:12,760 --> 00:17:15,399 Speaker 2: We talked about a number of factors that could be 333 00:17:15,480 --> 00:17:19,160 Speaker 2: leading to risk off sentiment. In some cases, it's way 334 00:17:19,160 --> 00:17:21,480 Speaker 2: worse under the hood than it is with the headline number. 335 00:17:21,640 --> 00:17:24,000 Speaker 2: For instance, the S and P down just two tents 336 00:17:24,040 --> 00:17:26,200 Speaker 2: of a percent, but it was quite a little bit 337 00:17:26,200 --> 00:17:29,320 Speaker 2: of selling attached to some key names that people are 338 00:17:29,320 --> 00:17:32,960 Speaker 2: heavily exposed to. I wonder whether or not yields getting 339 00:17:33,040 --> 00:17:34,800 Speaker 2: up on the ten year up around you know, four 340 00:17:34,800 --> 00:17:37,520 Speaker 2: and a half to five percent, Whether five percent could 341 00:17:37,560 --> 00:17:41,280 Speaker 2: be a real kind of inflection point, really sucking in 342 00:17:41,320 --> 00:17:43,480 Speaker 2: a lot of money by acid allocators. 343 00:17:43,840 --> 00:17:47,000 Speaker 6: Yeah, I think five. Obviously five is the nice round numbers, 344 00:17:47,000 --> 00:17:48,600 Speaker 6: so it could draw a lot of interest. I don't 345 00:17:48,600 --> 00:17:51,960 Speaker 6: think there's a five percent is the number, but I 346 00:17:51,960 --> 00:17:54,280 Speaker 6: think look, anything around this level just you know, four 347 00:17:54,440 --> 00:17:57,640 Speaker 6: sevens to five or anything around that is certainly of 348 00:17:57,720 --> 00:18:00,919 Speaker 6: interest to people. Of course, the catches you come in 349 00:18:00,960 --> 00:18:03,159 Speaker 6: something your funds and you're trying to go long duration. 350 00:18:03,520 --> 00:18:06,240 Speaker 6: You've been burned so many times before that it's a 351 00:18:06,240 --> 00:18:09,720 Speaker 6: bit like broken record and you're worried. Now cap tip 352 00:18:09,720 --> 00:18:11,640 Speaker 6: with this rhetoric coming out of the Fed like, hey, 353 00:18:11,680 --> 00:18:15,680 Speaker 6: we are considered rate hike if needed, or that possibilities 354 00:18:15,800 --> 00:18:18,600 Speaker 6: on the table if the data backs up, and of 355 00:18:18,640 --> 00:18:21,560 Speaker 6: course should that happen again, this is all lots of caveats, 356 00:18:21,760 --> 00:18:23,440 Speaker 6: but the ideas and you will see you see whats 357 00:18:23,560 --> 00:18:26,639 Speaker 6: go even higher. So I think the interesting thing becomes 358 00:18:26,680 --> 00:18:28,879 Speaker 6: is you go, oh, four to seven is attractive, but 359 00:18:28,920 --> 00:18:30,880 Speaker 6: you go our five's attractive, and you get the five, 360 00:18:30,920 --> 00:18:33,199 Speaker 6: and you go, actually five point two is attractive. So 361 00:18:34,080 --> 00:18:35,840 Speaker 6: it's a bit of a moving line in the sand. 362 00:18:35,920 --> 00:18:37,840 Speaker 6: And I think it's really only when the markets see 363 00:18:37,840 --> 00:18:41,440 Speaker 6: that data flip and the confident that the data's flipped, 364 00:18:41,800 --> 00:18:43,679 Speaker 6: that the rate hikes off the table and the rate 365 00:18:43,720 --> 00:18:46,040 Speaker 6: cuts are back in, then I think the market will 366 00:18:46,160 --> 00:18:48,000 Speaker 6: jump very quickly into treasure. 367 00:18:48,240 --> 00:18:51,919 Speaker 1: We had comments from the Japanese Finance minister. Suzuki was 368 00:18:51,960 --> 00:18:55,560 Speaker 1: talking about the interest rate grap the differential between the 369 00:18:55,680 --> 00:18:57,679 Speaker 1: US and Japan, and that's really what's been weighing on 370 00:18:57,720 --> 00:18:59,600 Speaker 1: the end. Yeah, maybe there are a few other factors. 371 00:18:59,720 --> 00:19:03,919 Speaker 1: Then we get this reading today on consumer inflation in Japan. Okay, 372 00:19:04,280 --> 00:19:07,960 Speaker 1: excluding fresh food, we're up two point six percent. That's 373 00:19:07,960 --> 00:19:11,199 Speaker 1: still above the boj's target, but it's below estimates. Is 374 00:19:11,240 --> 00:19:14,200 Speaker 1: that in keeping with this idea that the Bank of 375 00:19:14,280 --> 00:19:16,960 Speaker 1: Japan will continue to tighten or are they kind of 376 00:19:17,000 --> 00:19:19,280 Speaker 1: in a holding pattern right now, particularly when of the 377 00:19:19,359 --> 00:19:21,800 Speaker 1: data is not making a compelling case. 378 00:19:22,560 --> 00:19:26,159 Speaker 6: I think base of the rhetoric Bank of Japan has 379 00:19:26,160 --> 00:19:27,800 Speaker 6: said one thing and done the other. So, but if 380 00:19:27,800 --> 00:19:29,560 Speaker 6: you're based with the rhetoric, I think at the moment 381 00:19:29,800 --> 00:19:32,399 Speaker 6: they are in the holding pattern. I mean, the consensus 382 00:19:32,400 --> 00:19:34,080 Speaker 6: in the markets is if they're going to hike, it 383 00:19:34,119 --> 00:19:37,240 Speaker 6: looks more like October or potentially September, which sort of 384 00:19:37,280 --> 00:19:39,400 Speaker 6: makes sense. You're going to wait till all the way 385 00:19:39,560 --> 00:19:42,440 Speaker 6: data is fed through, which comes through in basically July August. 386 00:19:42,760 --> 00:19:44,920 Speaker 6: You get all the impacts on the labor cost earnings 387 00:19:44,960 --> 00:19:47,760 Speaker 6: fully fed through, and then you obviously have the call 388 00:19:47,800 --> 00:19:51,520 Speaker 6: leave reports later in that in that third quarter. So 389 00:19:51,600 --> 00:19:53,959 Speaker 6: I think they'll wait till then. Obviously the next week 390 00:19:54,240 --> 00:19:56,560 Speaker 6: Bankageman and got in your way, there's gonna be grilled 391 00:19:56,640 --> 00:19:58,399 Speaker 6: on the exchange way. I think there's gonna be no 392 00:19:58,440 --> 00:20:00,280 Speaker 6: shock on that. I don't think they'll do any thing. 393 00:20:00,600 --> 00:20:03,879 Speaker 6: But how he reacts to the exchange rate. People can 394 00:20:03,920 --> 00:20:06,520 Speaker 6: be looking at that words of you know, well, would 395 00:20:06,600 --> 00:20:09,680 Speaker 6: you consider right high and one of the governors said yes, 396 00:20:09,720 --> 00:20:11,679 Speaker 6: They said, okay, that's not really what you'd be using 397 00:20:11,680 --> 00:20:15,280 Speaker 6: the exchange rate policy muntly policy for. But you know 398 00:20:15,320 --> 00:20:17,000 Speaker 6: they'll be looking to see what your aid as says 399 00:20:17,000 --> 00:20:18,320 Speaker 6: in the comment and go from that. 400 00:20:19,480 --> 00:20:21,600 Speaker 2: So, in terms of risk gone and risk off, not 401 00:20:21,720 --> 00:20:25,520 Speaker 2: being too specific about one market here or one market there, 402 00:20:26,080 --> 00:20:30,159 Speaker 2: we do have the dollar and yields getting kind of 403 00:20:30,240 --> 00:20:33,520 Speaker 2: close to I guess levels that you know there might 404 00:20:33,560 --> 00:20:35,320 Speaker 2: be some resistance to get to the other. 405 00:20:35,240 --> 00:20:35,719 Speaker 4: Side of that. 406 00:20:36,560 --> 00:20:38,760 Speaker 2: Is it also quite possible that if you if you 407 00:20:38,840 --> 00:20:40,800 Speaker 2: got you know, all sort of beared up here, that 408 00:20:40,880 --> 00:20:43,359 Speaker 2: you could get your face ripped off because the rally 409 00:20:43,400 --> 00:20:44,600 Speaker 2: can come back at any time. 410 00:20:45,280 --> 00:20:47,280 Speaker 6: Oh yeah, I think certainly with the dollar. Look, I've 411 00:20:47,320 --> 00:20:48,960 Speaker 6: been a big dollar ball the whole year, but even 412 00:20:49,000 --> 00:20:50,840 Speaker 6: now I just put a piece that will be going 413 00:20:50,920 --> 00:20:53,240 Speaker 6: to shortly say that I think the neartime upsides a 414 00:20:53,280 --> 00:20:55,800 Speaker 6: bit limited for the dollar, and the reason's been is, 415 00:20:56,440 --> 00:20:59,080 Speaker 6: you know, ye would have the market prices only pricing 416 00:20:59,160 --> 00:21:02,119 Speaker 6: thirty eight bases point cuts this year. That's not really 417 00:21:02,119 --> 00:21:04,119 Speaker 6: that much and you need a lot more data to 418 00:21:04,119 --> 00:21:06,640 Speaker 6: back that up, which can happen, certainly, but you need 419 00:21:06,680 --> 00:21:08,399 Speaker 6: time for that and the other things to factor is 420 00:21:08,440 --> 00:21:11,040 Speaker 6: also the other side of the effects equation, certainly on 421 00:21:11,080 --> 00:21:13,480 Speaker 6: the euro, which is the bigger side, biggest portion of 422 00:21:13,480 --> 00:21:16,680 Speaker 6: a dollar index or the bloomboat dollar index. Germany's economies 423 00:21:16,760 --> 00:21:20,120 Speaker 6: starting to turn the corner, that being my data starting 424 00:21:20,160 --> 00:21:23,000 Speaker 6: to improve, and I think if that starts to happen, 425 00:21:23,000 --> 00:21:25,359 Speaker 6: the market sunny, it starts going, well, we were too 426 00:21:25,400 --> 00:21:28,560 Speaker 6: aggressive on the FED ruck cuts this year. Are we 427 00:21:28,640 --> 00:21:31,680 Speaker 6: too aggressive on the ECB rate cuts this year? Yes, 428 00:21:31,760 --> 00:21:33,560 Speaker 6: tune's can be rate cut up, but after that these 429 00:21:33,720 --> 00:21:36,040 Speaker 6: be is very vague. So something you go, well, why 430 00:21:36,040 --> 00:21:38,520 Speaker 6: should I go from three cuts down to two? If 431 00:21:38,520 --> 00:21:41,920 Speaker 6: you do, that's europositive, dollar negative. So I do think 432 00:21:41,920 --> 00:21:44,080 Speaker 6: the upside it's a lot more harder for the dollar 433 00:21:44,160 --> 00:21:46,560 Speaker 6: to rally in the near term. Having said that, as 434 00:21:46,600 --> 00:21:49,120 Speaker 6: you alluded to, the downside is a bit limited because 435 00:21:49,119 --> 00:21:51,439 Speaker 6: you're here, aren't going to tank anytime soon, and if 436 00:21:51,480 --> 00:21:53,760 Speaker 6: they really did, it would because a big risk off, 437 00:21:53,800 --> 00:21:57,800 Speaker 6: which is dollar positive anyway, So dollar upside is limited. 438 00:21:57,880 --> 00:22:00,920 Speaker 6: I think a period of consolidation in the near term 439 00:22:01,200 --> 00:22:02,399 Speaker 6: is what's going to happen. 440 00:22:02,480 --> 00:22:04,480 Speaker 1: David, very quickly, before we let you go, I want 441 00:22:04,520 --> 00:22:07,440 Speaker 1: to get your thoughts on the Chinese currency. We haven't 442 00:22:07,480 --> 00:22:10,879 Speaker 1: talked much about what's happening in China. We're seven twenty 443 00:22:10,920 --> 00:22:13,760 Speaker 1: five seventy right now. If shore you want what's your 444 00:22:13,760 --> 00:22:14,400 Speaker 1: outlook here? 445 00:22:14,960 --> 00:22:18,359 Speaker 6: Well, I think, obviously to fix the state around the 446 00:22:18,400 --> 00:22:20,760 Speaker 6: seven to ten level. I thought they may go back 447 00:22:20,800 --> 00:22:23,240 Speaker 6: in the seven or nine handle. But when the PBOC 448 00:22:23,320 --> 00:22:25,399 Speaker 6: didn't do that, when it had the opportion earlier this week, 449 00:22:25,800 --> 00:22:27,879 Speaker 6: then it did say, well, we can let it go 450 00:22:27,960 --> 00:22:30,399 Speaker 6: weak if we wanted to. But again, though we're going 451 00:22:30,480 --> 00:22:32,320 Speaker 6: to let it go very, very gradually. They're in no 452 00:22:32,400 --> 00:22:34,639 Speaker 6: hurry to have to get towards the seven thirty or 453 00:22:34,640 --> 00:22:38,040 Speaker 6: above seven thirty anytime soon, so I think any weakness 454 00:22:38,480 --> 00:22:40,399 Speaker 6: will be a grind. 455 00:22:40,440 --> 00:22:41,080 Speaker 1: Shall we say? 456 00:22:41,359 --> 00:22:43,639 Speaker 2: All right, David, thank you for joining us. David Finnerty, 457 00:22:43,640 --> 00:22:45,600 Speaker 2: Bloomberg EFX and Rate Strategist. 458 00:22:47,920 --> 00:22:50,879 Speaker 1: This has been the Bloomberg Daybreak Asia podcast, bringing you 459 00:22:50,920 --> 00:22:54,040 Speaker 1: the stories making news and moving markets in the Asia Pacific. 460 00:22:54,560 --> 00:22:57,680 Speaker 1: Visit the Bloomberg Podcast channel on YouTube to get more 461 00:22:57,680 --> 00:23:01,280 Speaker 1: episodes of this and other shows from Bloomberg. Subscribe to 462 00:23:01,320 --> 00:23:05,119 Speaker 1: the podcast on Apple, Spotify, or anywhere else you listen 463 00:23:05,200 --> 00:23:08,320 Speaker 1: and always on Bloomberg Radio, the Bloomberg Terminal, and the 464 00:23:08,320 --> 00:23:09,400 Speaker 1: Bloomberg Business app.