WEBVTT - Big Tech Earnings, BOJ Decision

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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<v Speaker 2>It's the Bank of Japan day day two of the meeting,

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<v Speaker 2>and we will get some policy pronouncement coming up a

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<v Speaker 2>little bit later this morning. Joining us in our studios

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<v Speaker 2>in Singapore to talk about this is Pai Chian Leo,

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<v Speaker 2>who's Asia economist at Fidelity International. So we might get

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<v Speaker 2>a little bit of a change in terms of the

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<v Speaker 2>inflation expectations from the BOJ, but at least most BOJ

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<v Speaker 2>watchers are saying it won't be any policy change. Are

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<v Speaker 2>you in that camp or do you see perhaps a

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<v Speaker 2>change in policy?

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<v Speaker 3>First, thank you for having me today. I actually expect

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<v Speaker 3>the BOG to keep monetary policy rates and policy setting

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<v Speaker 3>unchanged in this meeting. Other reason being there has been

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<v Speaker 3>a sew of actions been taken last month where the

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<v Speaker 3>BOG officially exited its negative interest regime For this month,

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<v Speaker 3>I think the focus would largely be, as you mentioned earlier,

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<v Speaker 3>on the revision of inflation for the boj's quarterly outlook

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<v Speaker 3>report that's going to be published. We also get a

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<v Speaker 3>new phixical year twenty six inflation and we expect all

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<v Speaker 3>of the inflation forecasts to be anchored around or above

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<v Speaker 3>two percent for the next three years.

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<v Speaker 1>What's going on with the currency right now? And should

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<v Speaker 1>this be of great concern for the Bank of Japan

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<v Speaker 1>or are they Do you think they're comfortable with allowing

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<v Speaker 1>market forces to dictate where the enis trading and perhaps

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<v Speaker 1>import a lot more inflation into the economy.

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<v Speaker 3>Well, I think, just broadly put into perspective, the weakening

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<v Speaker 3>Japanese yen is a result of the strong dollar rally

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<v Speaker 3>over the past few sessions. So broadly, not only the

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<v Speaker 3>Japanese y and Chinese yuan and other Issian effects are

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<v Speaker 3>also facing pressure of depreciation over the repressing of fat

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<v Speaker 3>rate paths and also the dollar strength. So on that note,

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<v Speaker 3>I think it as long as Japanese n is not

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<v Speaker 3>singled out in a depreciation path, the bog or mof

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<v Speaker 3>might be observing the pace of depreciation rather than a

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<v Speaker 3>specific level of it. Speaking of a weekend's impact on

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<v Speaker 3>the economy, I think definitely we're seeing more rising important

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<v Speaker 3>inflation that's contributing to the CPI numbers. But given that

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<v Speaker 3>the BOG is still firmly pushing for its reflation of

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<v Speaker 3>the economy and trying to get inflation back to above

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<v Speaker 3>two percent in a more sustainable manner, so I wouldn't

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<v Speaker 3>really think that having a little bit of important inflation

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<v Speaker 3>is bad for the economy after all.

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<v Speaker 2>Yeah, exactly, it sort of helps them with their objective.

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<v Speaker 2>But it seems like here of late, you've seen a

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<v Speaker 2>lot more discomfort coming in the stock market hasn't responded

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<v Speaker 2>as it often responds to a weekend by going higher.

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<v Speaker 2>It's been a little bit troubled, and you're hearing more

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<v Speaker 2>and more of these threats from policymakers that they could intervene. Now,

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<v Speaker 2>I didn't think that it would be very likely that

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<v Speaker 2>they would intervene in these two days where the Bank

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<v Speaker 2>of Japan was meeting, But then Bloomberg did a story

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<v Speaker 2>saying history suggests that they are willing to do it.

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<v Speaker 2>It doesn't happen all that often, but they are willing

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<v Speaker 2>to do it, but I guess we're about ready to

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<v Speaker 2>get this decision, so at least so far, no intervention

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<v Speaker 2>going forward. Who knows.

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<v Speaker 3>Yeah again, I think from a coordination or policy regime perspective, definitely,

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<v Speaker 3>the BOJ meeting today is worth watching out for, especially

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<v Speaker 3>what Governor oed is messaging about the week Japanese and

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<v Speaker 3>whether or not that affects the boj's forecast for inflation trajectory.

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<v Speaker 3>I think that will be also affecting the Japanese yen

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<v Speaker 3>performance after the meeting and will probably influencing the mof's

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<v Speaker 3>decision whether or not they should or would be intervening

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<v Speaker 3>in the market.

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<v Speaker 1>You also mentioned a week Chinese currency, and the export

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<v Speaker 1>side of the China story has been one area of

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<v Speaker 1>the economy that's been holding up pretty well. Do you

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<v Speaker 1>expect that to continue well?

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<v Speaker 3>I think the export some of whatever outperformances in the

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<v Speaker 3>past few months is mainly driven by a resumption or

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<v Speaker 3>resilience of the developmrket's demand. So that was in line

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<v Speaker 3>with a kind of a hot data showing that the

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<v Speaker 3>demand and export cycle is turning in an upswing. So

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<v Speaker 3>from that perspective, I think yes, we probably will see

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<v Speaker 3>a continuation of this, especially with the pickup of semiconductor

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<v Speaker 3>supply chain as well as the goods expots. But having

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<v Speaker 3>said that, I think ultimately China's growth still should likely

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<v Speaker 3>to be domestically driven, which which is still somewhat in

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<v Speaker 3>a gradual recovery path. So that's why in our base case,

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<v Speaker 3>we think that China's growth this year most likely will

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<v Speaker 3>following the range of controlled stabilization rather than any strong

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<v Speaker 3>reflation driven by added domestic or excellent demand at this moment.

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<v Speaker 2>So in the US, and now you look at the

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<v Speaker 2>US as well, GDP rising and analyze one point six

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<v Speaker 2>percent trailing every forecast in a Bloomberg survey and inflation

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<v Speaker 2>a lot harder than expected three point seven percent. Is

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<v Speaker 2>this still sort of in the noise category or is

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<v Speaker 2>this a trend now that we really have to be

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<v Speaker 2>cognizant of.

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<v Speaker 3>Well, I think for the US, our base case is

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<v Speaker 3>that it's gradually becoming the case that soft lending becomes

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<v Speaker 3>more likely. There are some resilience in the US economy

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<v Speaker 3>being exhibited, for example, of a somewhat resilient labor market,

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<v Speaker 3>inflation print still hovering at somewhat elevated levels, so that

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<v Speaker 3>all gives us a signal that with this resilience, it's

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<v Speaker 3>really the case that the US the fat might be

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<v Speaker 3>holding a rate for a bit longer.

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<v Speaker 2>Yeah, all right, mister do you thank you very much

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<v Speaker 2>for joining us. Leophen they're Asia economist at Fidelity International.

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<v Speaker 2>We've talked a lot about tech earnings this morning. We

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<v Speaker 2>want to get a closer look at some of the

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<v Speaker 2>ins and outs with Robert Lee, Bloomberg Intelligence Senior Analyst.

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<v Speaker 2>So I know that some of these companies, Robert, are

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<v Speaker 2>not companies that you cover specifically, so we want to

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<v Speaker 2>talk I guess more in generalities about the impact on

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<v Speaker 2>companies here, perhaps that you do follow a company like

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<v Speaker 2>ten Cent in the tech sphere. So we had very

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<v Speaker 2>strong earnings from Alphabet and Microsoft, the stocks rewarded Meta.

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<v Speaker 2>Parts of Meta's earnings were pretty solid, particularly the profit

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<v Speaker 2>revenue in the prior quarter, but it's the forecast that

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<v Speaker 2>got them in trouble. So what are some of the

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<v Speaker 2>what are you gleaning from some of these earnings? And

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<v Speaker 2>let's throw in as well heinex yesterday and you know

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<v Speaker 2>what we heard from TSMC and others like TI.

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<v Speaker 4>Okay, not much to go through then, but let's say

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<v Speaker 4>I'll do my best.

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<v Speaker 2>Yeah, yeah, give you thirty seconds.

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<v Speaker 4>It's all AI, It's all going up. But I'm joking.

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<v Speaker 4>I think taking a step back and looking at common

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<v Speaker 4>themes that impact both the US that have relevance to

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<v Speaker 4>the mag seven and also the stocks here in Asia,

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<v Speaker 4>I think maybe, as I've said before, you know, most

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<v Speaker 4>people would agree as we do, that the secular trend

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<v Speaker 4>in AI is something that's gonna It's a multi year trend,

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<v Speaker 4>arguably a multi decade decade trend. The benefits to consumer

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<v Speaker 4>and enterprise clients are potentially significant over the long run.

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<v Speaker 4>Who's making money from it in the moment, No, clearly

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<v Speaker 4>in video and the infrastructure players are and you know

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<v Speaker 4>in videos really in the sweet spot winner ticks or

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<v Speaker 4>because of the supply constraints. However, you look at the

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<v Speaker 4>software companies in the middle and they are shelling out

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<v Speaker 4>tens of billions in capex at a time when their

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<v Speaker 4>monetization strategies are an early stage or even immature. And

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<v Speaker 4>I think that was that chickens came home to roost,

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<v Speaker 4>if that's the right expression for meta on that front,

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<v Speaker 4>because it's kapex burden is rising, impacting its free cust

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<v Speaker 4>flower generation a time when its monetization is relatively low.

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<v Speaker 4>Obviously investors took that quite negatively.

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<v Speaker 1>So the Campex, so I would argue, is tied not

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<v Speaker 1>only to AI, but VR as well. And we know

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<v Speaker 1>that the Zuckerberg is very much committed to kind of

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<v Speaker 1>the metaverse and the virtual reality space. But let's for

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<v Speaker 1>the sake of this discussion remain focused on AI. One

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<v Speaker 1>of the things that you highlighted there was the accelerators

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<v Speaker 1>made by Nvidia, and that's not the only part of

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<v Speaker 1>the AI story. When you're building out these data centers,

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<v Speaker 1>the memory chip makers, the high bandwidth memory chip makers

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<v Speaker 1>in particular, are a fitting in a big way. Next

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<v Speaker 1>week we're going to get Samsung. Can you give me

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<v Speaker 1>a sense of what to expect, what we might look

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<v Speaker 1>for in Samsung numbers?

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<v Speaker 3>No?

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<v Speaker 4>No, No, definitely. So the major supplies, the three main

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<v Speaker 4>memory supplies globally, Samson being the largest, ESK Heinex in

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<v Speaker 4>Korea and then Micron in the States. So the whilst

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<v Speaker 4>Samson is the leading volume player with a large exposure

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<v Speaker 4>and dependence on the PC market, the leader in high

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<v Speaker 4>bandwidth memory, which goes into these AI servers is Heinex.

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<v Speaker 4>So Samson is playing catch up, and I think the

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<v Speaker 4>thing to watch for in next week's results is, you

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<v Speaker 4>know what progress that they're making that front, and they're

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<v Speaker 4>managing to narrow the gap with the leader, Heinex. But

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<v Speaker 4>DRAM or the memory chips is in aoriously volatile market.

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<v Speaker 4>Things seem to be going the right way for the

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<v Speaker 4>moment as PC demand picks up and the dynamics of

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<v Speaker 4>supply and demand move more in their favor. But having

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<v Speaker 4>said that, look at Intel last night. Intel clearly disappointed.

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<v Speaker 4>One of the reasons for that is ongoing soft demand

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<v Speaker 4>within mainstream PCs, so we shouldn't forget about that. At

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<v Speaker 4>the moment.

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<v Speaker 2>I thought that this earning season we might see a

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<v Speaker 2>switch from the providers of the AI chips to focus

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<v Speaker 2>on them more into use case the software and the

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<v Speaker 2>consumer facing companies like Google and perhaps even Microsoft. I'm

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<v Speaker 2>not sure that we're quite there yet, but might we

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<v Speaker 2>get teased some of that from Samsung.

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<v Speaker 4>Again, you look at Samson's business, the major profit and

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<v Speaker 4>earning strivers for on the memory chips, so again DRAM

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<v Speaker 4>and nan Flash, which are very very cyclical and very

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<v Speaker 4>very volatile industries. But with demand currently beginning to outstrip supply,

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<v Speaker 4>that's you know, that's pushing pricing up and driving margins

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<v Speaker 4>within those core businesses. Samson is also a major supplier

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<v Speaker 4>of smartphones globally. That's a sort of lower growth business

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<v Speaker 4>these days. So the thing to watch force is Samson's

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<v Speaker 4>results next week of really the memory side. That's what

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<v Speaker 4>underpins their profit growth. And as I said, we need

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<v Speaker 4>to see evidence that they are narrowing the technology gap

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<v Speaker 4>with the leader Heinez at the moment. So I think

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<v Speaker 4>it's all in potentially in Samson's favor on that front.

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<v Speaker 4>The other thing, very quickly is great to focus on

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<v Speaker 4>shareholder returns, enhanced shareholder returns. Obviously, Samson is sitting on

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<v Speaker 4>a substantial cash balance, is inherently very cash generitive. Could

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<v Speaker 4>we see enhancements on the shareholder return side as we

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<v Speaker 4>saw from Google last night with its inaugural dividend.

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<v Speaker 1>Before we let you go, Robert, I'm sorry to cut

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<v Speaker 1>you off there, because I want to be able to

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<v Speaker 1>get your perspective on the Chinese chip manufacturers. The Huawei,

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<v Speaker 1>I think is coming to sharp focus given you just

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<v Speaker 1>mentioned the smartphone market. Huawei is I think doing very

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<v Speaker 1>well on that front, what do we know about chip

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<v Speaker 1>manufacturing going on in China right now and whether or

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<v Speaker 1>not companies like Samsung need to look over their shoulder.

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<v Speaker 4>It's probably a little bit early days for Samson and

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<v Speaker 4>others to worry about the threat from the Chinese. But

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<v Speaker 4>at the end of the day, the way of the

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<v Speaker 4>state is backing Huawei and SMIC and SMIC being the

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<v Speaker 4>Chinese equivalent of TIERSMC, So you've got you know, you've

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<v Speaker 4>got a lot of national pride, a lot of strategic

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<v Speaker 4>national long term objectives, and a lot of money flowing

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<v Speaker 4>into lact sector. However, they have two major barriers to overcome.

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<v Speaker 4>One is the export restrictions on the ASML Advanced lethography

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<v Speaker 4>equipment that is going to be a multi year challenge

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<v Speaker 4>for them to overcome. And the yields they're generating on

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<v Speaker 4>these five andanimeter chips, which is the one that caught

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<v Speaker 4>the headline at the end of last year, they look

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<v Speaker 4>to be quite low. So they are making progress, but

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<v Speaker 4>there's multiple, well three four generations behind where the US

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<v Speaker 4>and TSMC is at the moment.

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<v Speaker 2>Do you see the heat getting turned up in the

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<v Speaker 2>relationship between US and China When it comes to things

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<v Speaker 2>like semiconductors or do you see that heat perhaps being

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<v Speaker 2>lowered in the next few months.

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<v Speaker 4>Again, another great question. I think china strategy at the

0:12:58.320 --> 0:13:01.719
<v Speaker 4>moment is these rests friction on the lithography equipment and

0:13:01.840 --> 0:13:05.040
<v Speaker 4>not impacting the mainstream And obviously China is the workshop

0:13:05.080 --> 0:13:07.320
<v Speaker 4>to the world, isn't it to make everything from vacuum

0:13:07.360 --> 0:13:10.760
<v Speaker 4>cleaners to air conditioning units. These use mainstream chips and

0:13:11.000 --> 0:13:14.080
<v Speaker 4>China's strategy at the moment seems to be increasing its

0:13:14.160 --> 0:13:17.360
<v Speaker 4>market share within the mass market, which does not suffer

0:13:17.400 --> 0:13:21.000
<v Speaker 4>these restrictions. That's the strategy. At the same time putting

0:13:21.000 --> 0:13:23.040
<v Speaker 4>a huge amount of effort onto the R and D side,

0:13:23.040 --> 0:13:24.840
<v Speaker 4>But that's a multi yeah challenge.

0:13:24.920 --> 0:13:27.000
<v Speaker 2>I know you have to run off to television much

0:13:27.040 --> 0:13:30.840
<v Speaker 2>in demand, Robert, thank you, Robert Lee Bloomberg Intelligence Senior Analyst.

0:13:38.120 --> 0:13:41.600
<v Speaker 2>Secretary of State Anthony Blinkett raising concerns over what the

0:13:41.679 --> 0:13:47.000
<v Speaker 2>US perceives as unfair trade practices in China and the

0:13:47.040 --> 0:13:50.079
<v Speaker 2>Global Times, a Communist Party paper responded by saying, why

0:13:50.120 --> 0:13:52.760
<v Speaker 2>does the US side turn a normal visit into what

0:13:52.880 --> 0:13:56.280
<v Speaker 2>seems like an ultimatum? Joining US now? Is Jill deesis

0:13:56.320 --> 0:13:59.240
<v Speaker 2>in our studios right here in Hong Kong, Bloomberg News

0:13:59.240 --> 0:14:03.000
<v Speaker 2>Desk editor to take a closer look. There wasn't all

0:14:03.040 --> 0:14:05.760
<v Speaker 2>that much that came out of these meetings yesterday except

0:14:05.840 --> 0:14:08.199
<v Speaker 2>kind of restating positions. I would say, what do.

0:14:08.160 --> 0:14:10.960
<v Speaker 5>You say, yeah, Brian, I agree with you. I think

0:14:11.360 --> 0:14:13.960
<v Speaker 5>that makes sense though here, because really what Blinkin is

0:14:14.000 --> 0:14:17.600
<v Speaker 5>doing here is just driving home this drumbeat of criticisms

0:14:17.640 --> 0:14:20.360
<v Speaker 5>that the US has been building, particularly over the last

0:14:20.400 --> 0:14:24.680
<v Speaker 5>several months against China. So one is this criticism of

0:14:24.720 --> 0:14:28.440
<v Speaker 5>industrial overcapacity that the US has levied against China, the

0:14:28.480 --> 0:14:32.600
<v Speaker 5>idea that China is exporting incredibly cheap goods around the

0:14:32.640 --> 0:14:35.240
<v Speaker 5>world and creating a lot of economic imbalances. We saw

0:14:35.280 --> 0:14:39.040
<v Speaker 5>this come up during US Treasury Secretary Jenet Yellen's trip

0:14:39.080 --> 0:14:41.200
<v Speaker 5>to Beijing just a couple of weeks ago, blink and

0:14:41.280 --> 0:14:44.560
<v Speaker 5>hitting on that again during this trip to Shanghai and Beijing.

0:14:45.040 --> 0:14:47.720
<v Speaker 5>The other thing too, though, is that he's you know,

0:14:47.720 --> 0:14:50.040
<v Speaker 5>when it comes to some of those unfair trade practices.

0:14:50.080 --> 0:14:54.000
<v Speaker 5>A major points of contention is China's relationship with Russia

0:14:54.040 --> 0:14:56.640
<v Speaker 5>and how much China may be you know, sort of

0:14:56.960 --> 0:15:01.480
<v Speaker 5>funding different industries with in Russia that are contributing to

0:15:01.520 --> 0:15:04.760
<v Speaker 5>the war efforts in Ukraine. This is also, i will say, Brian,

0:15:04.880 --> 0:15:07.720
<v Speaker 5>just something that came up with Janet Yellen. So you

0:15:07.760 --> 0:15:09.560
<v Speaker 5>sort of raise the prospect that there could be French

0:15:09.880 --> 0:15:13.480
<v Speaker 5>fresh sanctions on Chinese banks helping Russia in that respect.

0:15:13.520 --> 0:15:14.560
<v Speaker 5>So lot's going on here.

0:15:14.600 --> 0:15:17.840
<v Speaker 1>It's not just Russia. The sanctions on the Chinese banks

0:15:17.920 --> 0:15:20.680
<v Speaker 1>also tied to this flow of Iranian crude oil that

0:15:21.000 --> 0:15:24.200
<v Speaker 1>has been going to the refineries in China. That seems

0:15:24.200 --> 0:15:26.760
<v Speaker 1>to be pretty real because it was baked into this

0:15:26.840 --> 0:15:30.400
<v Speaker 1>Foreign aid bill. I'm sure that that was talked about

0:15:30.440 --> 0:15:35.440
<v Speaker 1>in this meeting, and I'm wondering that it probably supposing

0:15:35.480 --> 0:15:37.760
<v Speaker 1>that it's not going down very well in Beijing.

0:15:38.680 --> 0:15:40.720
<v Speaker 5>No, Doug, I don't think it is. I think you're

0:15:40.800 --> 0:15:43.280
<v Speaker 5>right that, you know, I mean, it's difficult to think

0:15:43.320 --> 0:15:45.920
<v Speaker 5>that that wouldn't be discussed during all these meetings with

0:15:45.920 --> 0:15:49.120
<v Speaker 5>Lincoln this week. I think it really just underscores this

0:15:49.240 --> 0:15:51.920
<v Speaker 5>idea that there's still a lot of points of contention

0:15:52.040 --> 0:15:54.560
<v Speaker 5>and a lot of room for volatility within the US

0:15:54.640 --> 0:15:58.680
<v Speaker 5>China relationship because you've got, yes, all of these you know,

0:15:58.720 --> 0:16:01.960
<v Speaker 5>dignitaries from the US visiting China recently. That's certainly an

0:16:01.960 --> 0:16:04.160
<v Speaker 5>improvement from where we were just you know, a year

0:16:04.240 --> 0:16:07.400
<v Speaker 5>eighteen months ago when you saw much bigger icing out

0:16:07.400 --> 0:16:10.200
<v Speaker 5>of communications. So there's at least that presumption of high

0:16:10.280 --> 0:16:14.040
<v Speaker 5>level talks between US and Chinese officials. But as we've

0:16:14.080 --> 0:16:16.920
<v Speaker 5>seen with a lot of you know, the responses, particularly

0:16:16.920 --> 0:16:20.520
<v Speaker 5>from the US recently on potential sanctions on different aspects

0:16:20.560 --> 0:16:23.760
<v Speaker 5>of China, again, it's just there's still a lot of

0:16:23.800 --> 0:16:24.880
<v Speaker 5>points of contention here.

0:16:25.200 --> 0:16:28.160
<v Speaker 2>Yeah, I was looking for a way to finish off

0:16:28.200 --> 0:16:32.360
<v Speaker 2>our story that we wrote for the Radio earlier, and

0:16:32.800 --> 0:16:35.480
<v Speaker 2>it seemed that, you know, you could say that although

0:16:36.200 --> 0:16:39.800
<v Speaker 2>to a certain degree the relations have stabilized, but the

0:16:39.840 --> 0:16:45.240
<v Speaker 2>two countries are still battling over technology, human rights, trade, Ukraine,

0:16:45.880 --> 0:16:48.680
<v Speaker 2>North Korea, and the Middle East. So I was curious

0:16:48.720 --> 0:16:53.720
<v Speaker 2>what Jilldicis thinks is what's the sorest of the point.

0:16:54.240 --> 0:16:56.160
<v Speaker 5>I mean, I think at this point, really a lot

0:16:56.200 --> 0:16:59.360
<v Speaker 5>of those issues over tech national security in particular, are

0:16:59.520 --> 0:17:03.400
<v Speaker 5>very very difficult. I'm looking over the last year where

0:17:03.480 --> 0:17:05.960
<v Speaker 5>that I think the Biden administration has been the most

0:17:06.000 --> 0:17:09.439
<v Speaker 5>effective and really crimping a lot of China's ambitions. Is

0:17:09.880 --> 0:17:12.199
<v Speaker 5>on some of those technological issues. I mean, you know,

0:17:12.240 --> 0:17:16.320
<v Speaker 5>we've seen some fairly effective sanctions on chip makers and

0:17:16.720 --> 0:17:19.840
<v Speaker 5>you know, on chip supply chains directed at China that

0:17:20.160 --> 0:17:22.840
<v Speaker 5>I think have really created some pain points. Obviously, China

0:17:22.840 --> 0:17:25.440
<v Speaker 5>has found some ways to sort of work around those things.

0:17:25.440 --> 0:17:28.680
<v Speaker 5>We saw that you know, big Huawei phone launch last

0:17:28.720 --> 0:17:31.760
<v Speaker 5>fall that was you know, very successful. But it's very clear,

0:17:31.840 --> 0:17:34.200
<v Speaker 5>especially when you're seeing this brought up in hijin Ping,

0:17:34.800 --> 0:17:38.239
<v Speaker 5>you know, addresses and things by other Chinese leaders, that

0:17:38.280 --> 0:17:41.879
<v Speaker 5>this idea that you know, China is very concerned about

0:17:42.240 --> 0:17:44.879
<v Speaker 5>ways in which it sees the US as you know,

0:17:44.960 --> 0:17:47.359
<v Speaker 5>really really crimping a lot of its technological ambitions. And

0:17:47.400 --> 0:17:49.119
<v Speaker 5>I think that's pretty a particular sore.

0:17:49.040 --> 0:17:54.040
<v Speaker 1>Point, crimpling technological innovations perhaps, but certainly standing in the

0:17:54.040 --> 0:17:56.119
<v Speaker 1>way of a lot of what Beijing would like to

0:17:56.119 --> 0:17:57.840
<v Speaker 1>do in the South China. See, I think we can

0:17:57.880 --> 0:18:00.720
<v Speaker 1>agree on that as well, don't you think definitely?

0:18:00.840 --> 0:18:03.480
<v Speaker 5>I mean, look, I think that you know, military defense

0:18:03.520 --> 0:18:06.320
<v Speaker 5>issues are certainly a major sticking point here. I mean,

0:18:06.400 --> 0:18:09.320
<v Speaker 5>it's really you have to go back to Nancy Pelosi's

0:18:09.400 --> 0:18:12.480
<v Speaker 5>visit to Taiwan when she was a US House speaker,

0:18:12.520 --> 0:18:14.879
<v Speaker 5>really kicked off, you know, quite a bit of anger

0:18:14.960 --> 0:18:17.840
<v Speaker 5>from Beijing. I mean, you know, just a few months

0:18:17.920 --> 0:18:21.200
<v Speaker 5>later we had the ledged Chinese spy balloon flying over

0:18:21.240 --> 0:18:24.399
<v Speaker 5>the US that actually iced up earlier trip b Lincoln

0:18:24.400 --> 0:18:27.119
<v Speaker 5>was supposed to take to China last year. I mean, yes,

0:18:27.200 --> 0:18:29.960
<v Speaker 5>it's very clear that I think, you know, anything involving

0:18:30.440 --> 0:18:33.080
<v Speaker 5>the US's support of Taiwan in particular is going to

0:18:33.119 --> 0:18:36.600
<v Speaker 5>be a major sticking point with Beijing and create some

0:18:36.680 --> 0:18:38.000
<v Speaker 5>additional volatility there.

0:18:38.400 --> 0:18:40.600
<v Speaker 2>In our b N story on this, we didn't mention

0:18:40.680 --> 0:18:43.600
<v Speaker 2>about a possible meeting with President Chi Jinping. Is that

0:18:43.640 --> 0:18:46.560
<v Speaker 2>seemingly now off the table or might it happen today?

0:18:46.800 --> 0:18:48.680
<v Speaker 5>I think, Brian, we're really not going to know until

0:18:48.720 --> 0:18:51.520
<v Speaker 5>really the last minute here. I mean, it's certainly possible,

0:18:51.560 --> 0:18:54.160
<v Speaker 5>and remember Blincoln did meet with she last year when

0:18:54.200 --> 0:18:57.160
<v Speaker 5>he was in town, so you know, there's certainly precedent there.

0:18:57.720 --> 0:19:00.200
<v Speaker 5>I'd say it's still it's still a float. It is

0:19:00.240 --> 0:19:03.040
<v Speaker 5>a possibility, but it may not be until quite late

0:19:03.040 --> 0:19:06.600
<v Speaker 5>this afternoon that we actually get some kind of confirmation

0:19:06.720 --> 0:19:09.120
<v Speaker 5>on whether that meeting is actually taking place.

0:19:09.200 --> 0:19:11.840
<v Speaker 1>Okay, Jill, thirty seconds did they talk about TikTok?

0:19:12.600 --> 0:19:15.639
<v Speaker 5>I mean its certainly like it's got to come up right, Like,

0:19:16.040 --> 0:19:19.800
<v Speaker 5>I mean, when you've got this massive US legislation that's

0:19:19.880 --> 0:19:22.480
<v Speaker 5>just passed two hundred and seventy days to divest or

0:19:22.960 --> 0:19:27.879
<v Speaker 5>to leave the US, I mean again, another religious underscoring

0:19:27.920 --> 0:19:29.600
<v Speaker 5>a lot of that major points of contention there.

0:19:29.720 --> 0:19:32.639
<v Speaker 2>Yeah, they went to a basketball game the night before,

0:19:32.720 --> 0:19:34.800
<v Speaker 2>I mean, yesterday was the first full day of meetings,

0:19:35.400 --> 0:19:37.960
<v Speaker 2>and that's kind of interesting. So Anthony blinkoln getting a

0:19:37.960 --> 0:19:41.520
<v Speaker 2>little culture there in China. Jill, thanks so much for

0:19:41.640 --> 0:19:44.480
<v Speaker 2>joining us here in our studios. Jill desis Bloomberg News

0:19:44.560 --> 0:19:45.400
<v Speaker 2>Desk Editor.

0:19:46.760 --> 0:19:49.679
<v Speaker 1>This has been the Bloomberg Daybreak Asia podcast, bringing you

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