WEBVTT - Intel-Amazon Web Services Deal, Trump Assassination Attempt Update 0:00:02.480 --> 0:00:10.440 Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg 0:00:10.520 --> 0:00:13.720 Daybreak Asia podcast. I'm Doug Krisner. You can join Brian 0:00:13.800 --> 0:00:16.640 Curtis and myself for the stories making news and moving 0:00:16.680 --> 0:00:19.560 markets in the APAC region. You can subscribe to the 0:00:19.600 --> 0:00:23.080 show anywhere you get your podcast and always on Bloomberg Radio, 0:00:23.320 --> 0:00:26.080 the Bloomberg Terminal, and the Bloomberg Business App. 0:00:27.320 --> 0:00:31.000 Intel making a custom chip for Amazon Web Services for 0:00:31.200 --> 0:00:35.400 use in artificial intelligence computing. A lot more on this story, 0:00:35.479 --> 0:00:38.520 we will cover it now with Ian King, Bloomberg News 0:00:38.720 --> 0:00:42.839 US Semiconductor reporter. So Ian investors really seem to like 0:00:42.880 --> 0:00:46.959 this story in that obviously Aws a very big customer, 0:00:47.000 --> 0:00:52.280 the largest cloud operator, and this will help the foundry business, 0:00:52.280 --> 0:00:55.440 which Intel has been pushing. And then the postponing of 0:00:55.440 --> 0:00:58.960 the foreign plants kind of helps on the cost side. 0:00:59.480 --> 0:01:01.920 So it's seems like a good step. But my question 0:01:02.000 --> 0:01:04.120 for you is how long will it take for some 0:01:04.160 --> 0:01:05.640 of these gains to be reaped? 0:01:07.520 --> 0:01:11.640 Quite a while, that's the issue at hand here. I mean, 0:01:11.680 --> 0:01:16.360 the cost cutting should help actually closer to sort of 0:01:16.360 --> 0:01:19.679 bring the company into sort of alignment with what it 0:01:19.680 --> 0:01:24.880 can afford. The foundry wins from companies like a WS. 0:01:25.120 --> 0:01:28.720 It's kind of in the future next couple of years 0:01:29.000 --> 0:01:31.640 when those kind of things will kick in and hopefully 0:01:31.680 --> 0:01:34.280 start to have those new plants pay for themselves a 0:01:34.319 --> 0:01:35.280 bit more so. 0:01:35.760 --> 0:01:36.040 Ian. 0:01:36.160 --> 0:01:40.640 This is the Intel eighteen A microprocessor, right, or is 0:01:40.680 --> 0:01:46.280 it more kind of like a GPU that in Nvidia 0:01:46.360 --> 0:01:50.240 produces for a lot of these functions of using kind 0:01:50.280 --> 0:01:53.680 of the data server as a way to process AI functionality. 0:01:54.480 --> 0:01:58.160 Yeah, And eighteen A is the name of the process 0:01:58.240 --> 0:02:02.480 technology that it is both using itself and offering for 0:02:02.720 --> 0:02:06.840 use from external customers. So it's basically saying, hey, this 0:02:06.920 --> 0:02:10.280 is our latest and greatest production technology. This comes in 0:02:10.880 --> 0:02:13.800 to use kind of around now and into next year. 0:02:14.760 --> 0:02:17.920 And guess what we've got a customer, what Amazon? The 0:02:17.960 --> 0:02:19.880 only detail we've got is that it is what's called 0:02:19.880 --> 0:02:23.640 a fabric chip that is usually a kind of chip 0:02:23.720 --> 0:02:27.800 that links other chips together. So it's not the absolute 0:02:27.880 --> 0:02:33.640 pinnacle of high volume or importance, but it's nonetheless an 0:02:33.680 --> 0:02:37.080 important part of an overall computer network that would perhaps 0:02:37.160 --> 0:02:40.120 link things like a GPU to other parts of the computer, 0:02:40.280 --> 0:02:42.720 maybe to a CPU, the kind of thing that Intel 0:02:42.760 --> 0:02:46.120 specializes in. So we need more details. We need volume, 0:02:46.200 --> 0:02:50.760 and we need to see revenue. But having Amazon's name 0:02:50.919 --> 0:02:56.000 associated with their founder is definitely something that helps Intel 0:02:56.080 --> 0:02:58.240 sort of prove the naysayers wrong. 0:02:59.160 --> 0:03:01.600 It's a big deal. Intel's been under a lot of pressure. 0:03:01.680 --> 0:03:04.079 Must have been a very tough board meeting last week. 0:03:04.320 --> 0:03:07.320 I'm wondering does this buy Pat Gelsinger some more time? 0:03:08.200 --> 0:03:08.399 Yeah? 0:03:08.440 --> 0:03:11.840 I mean we spoke with Pat earlier and asked, you know, 0:03:11.919 --> 0:03:14.960 about his plan, about their support for it, and he 0:03:15.040 --> 0:03:17.799 was very clear that it had been a rigorous board meeting. 0:03:17.880 --> 0:03:20.960 You know, people had asked him tough questions and so forth, 0:03:21.400 --> 0:03:24.840 but that you know, he has their support, that they 0:03:25.120 --> 0:03:28.400 accepted his prognosis for how things are going to play out, 0:03:28.480 --> 0:03:29.880 and that they are behind him. 0:03:30.160 --> 0:03:31.720 So what does this do. I know there was some 0:03:31.800 --> 0:03:35.680 concern that Intel may not qualify for funds being distributed 0:03:35.720 --> 0:03:38.480 from the Chips and Science AEC. Does this help in 0:03:38.520 --> 0:03:38.960 any way? 0:03:40.000 --> 0:03:42.400 Well, the important thing to point out there is they 0:03:42.440 --> 0:03:45.320 are qualified, right, but that doesn't mean they're going to 0:03:45.320 --> 0:03:48.200 get the money. The US government, which is good for 0:03:48.280 --> 0:03:51.360 taxpayers like me, has said yeah, yeah, here's you know, 0:03:51.440 --> 0:03:53.960 eight billion dollars that will set aside for you, but 0:03:54.120 --> 0:03:56.440 you have to do certain things before we give you 0:03:56.520 --> 0:03:57.040 that money. 0:03:57.520 --> 0:03:59.400 So that's still a work in progress. Right. 0:03:59.480 --> 0:04:01.960 It's got some the local grants from places like Ohio 0:04:02.200 --> 0:04:05.520 and Arizona, but the federal money has not been handed 0:04:05.520 --> 0:04:06.000 over yet. 0:04:07.400 --> 0:04:09.560 So I'm curious what this means that. You know, we 0:04:09.680 --> 0:04:13.680 mentioned the Germany and the Poland plants who be postponed, 0:04:14.120 --> 0:04:16.640 and that will help on the cost side. The Malaysia 0:04:16.680 --> 0:04:21.800 plant goes continues, but you know, may maybe postpone. The 0:04:21.800 --> 0:04:26.440 actual usage maybe postponed. Does does Intel lose anything by 0:04:27.279 --> 0:04:28.039 moving slowly? 0:04:28.080 --> 0:04:29.240 Now on the Germany and. 0:04:29.200 --> 0:04:34.440 Poland plants, Yes and no, right, I mean in Europe 0:04:34.040 --> 0:04:37.480 they were set to get a lot more state money 0:04:38.360 --> 0:04:42.560 and obviously this decision to postpone throws that into. 0:04:43.920 --> 0:04:45.520 Debate whether they'll ever get that. 0:04:46.160 --> 0:04:50.200 But at the same time, these things are not cheap, right, 0:04:50.279 --> 0:04:51.720 as soon as you build one, as soon as you 0:04:51.760 --> 0:04:55.039 put that equipment in there, you've got twenty thirty billion 0:04:55.080 --> 0:04:58.840 dollars of capex that within five years will be obsolete. 0:04:58.880 --> 0:05:00.560 So if you're going to do that, then you have 0:05:00.640 --> 0:05:02.280 to be ready and you have to be sure you're 0:05:02.279 --> 0:05:05.440 going to fill it. So in that sense, it's a 0:05:05.440 --> 0:05:09.599 prudent move to move, you know, sort of moss ball 0:05:09.720 --> 0:05:12.120 these ideas, So you're keeping the option open, but at 0:05:12.120 --> 0:05:16.599 the same time you're not risking that massive cash strain. 0:05:16.960 --> 0:05:19.359 So the news on Intel making this custom chip for 0:05:19.400 --> 0:05:22.800 AWS for use in AI computing, that was just one 0:05:22.880 --> 0:05:26.640 story involving Intel today. Bring us up to speed on 0:05:26.720 --> 0:05:30.960 where this company is with respect to building chips for 0:05:31.120 --> 0:05:32.880 the Pentagon for the US military. 0:05:33.520 --> 0:05:35.800 Yeah, I mean that was another piece of positive news. 0:05:35.920 --> 0:05:38.720 There's some money being set aside for what's called the 0:05:39.200 --> 0:05:43.440 Trusted Foundry type operation, where the US government is reserving 0:05:44.320 --> 0:05:47.960 capacity in a factory or multiple factories that it will 0:05:48.000 --> 0:05:50.919 be for the exclusive uses of military type chips. 0:05:50.960 --> 0:05:53.200 Obviously there's a national security thing. There. 0:05:53.480 --> 0:05:55.960 There a lot of debates backwards and forwards about whether 0:05:56.040 --> 0:05:58.000 this should be Intel, whether it should be a number 0:05:58.000 --> 0:06:01.840 of companies, or we got today was affirmation of news 0:06:01.839 --> 0:06:04.200 that we actually broke last week that it didn't it 0:06:04.240 --> 0:06:07.080 will indeed be Intel and now the major beneficiary of that. 0:06:07.160 --> 0:06:09.440 So that's a big help. Ian. 0:06:09.520 --> 0:06:12.000 I want to ask you kind of a lofty question here. 0:06:12.520 --> 0:06:15.400 Just just after reading Chip War by Chris Miller. Both 0:06:15.440 --> 0:06:17.120 Doug and I read the book and loved it and 0:06:17.800 --> 0:06:22.000 you know, I think you know this move by Intel 0:06:22.200 --> 0:06:25.680 into trying to bring home production and to stand on 0:06:25.720 --> 0:06:28.800 its own on the global stage as a sort of 0:06:28.839 --> 0:06:32.440 barometer for American manufacturing. Is there a lot at stake 0:06:32.480 --> 0:06:35.040 here or is this just one company? And you know, 0:06:35.800 --> 0:06:36.880 every company is different. 0:06:38.240 --> 0:06:42.000 I would separate the two that the issue for Intel 0:06:42.000 --> 0:06:44.560 as a company is we all think of Intel as 0:06:44.600 --> 0:06:48.760 this omnipotent force in the chip industry and in technology, 0:06:50.120 --> 0:06:52.400 and it's trying to get back to that. If it 0:06:52.480 --> 0:06:55.720 was just an ordinary company that kind of did okay 0:06:55.760 --> 0:06:58.600 in some years and and others, we'd have different standards. 0:06:59.000 --> 0:07:01.320 Intel has held to the standards, said it will get 0:07:01.320 --> 0:07:04.560 back to them, and that is clearly harder than anybody 0:07:04.640 --> 0:07:06.840 had imagined. So that's why people are looking at them. 0:07:06.880 --> 0:07:10.360 In terms of bringing manufacturing to this country. Intel would 0:07:10.400 --> 0:07:12.440 be the champion if you wanted a local company to 0:07:12.440 --> 0:07:16.640 do it. But guess what, TSMC, Samsung they're building here too, 0:07:17.120 --> 0:07:20.000 and they're not having anything like the amount of problems, 0:07:20.040 --> 0:07:23.320 if indeed no problems at all in TSMC's case. So 0:07:23.400 --> 0:07:27.160 if you want high in manufacturing here, of course Intel 0:07:27.640 --> 0:07:29.680 should be the first look. But that's very much a 0:07:29.720 --> 0:07:32.080 backward look right, Intel has to prove itself again. 0:07:33.480 --> 0:07:36.520 Yeah, we've seen power in this industry shift a lot 0:07:36.560 --> 0:07:39.640 over the past sixty years, and it seems like it 0:07:39.640 --> 0:07:42.840 has definitely shifted. Listening to Jensen Wong talk about TSMC 0:07:42.960 --> 0:07:46.000 the other day was unbelievable the praise that he was 0:07:46.040 --> 0:07:51.160 giving to their manufacturing processes. All right, Ian, thank you 0:07:51.160 --> 0:07:53.200 so much for joining us here in king Bloomberg News 0:07:53.320 --> 0:08:04.800 US Semiconductor Reportal Michael Dyer, Investment Director Equities at Multi 0:08:04.840 --> 0:08:08.440 Asset at MNG Investments. Michael, thanks very much for coming 0:08:08.480 --> 0:08:11.520 into our studios here in Hong Kong. You wonder a 0:08:11.560 --> 0:08:15.360 little about a cautious FED and whether or not they 0:08:15.880 --> 0:08:18.040 send a little bit of a message to investors. You 0:08:18.120 --> 0:08:20.840 might worry investors with a fifty basis point gut. I 0:08:20.840 --> 0:08:23.200 know they've tried to prepare the ground a little bit, 0:08:23.720 --> 0:08:26.400 but your thoughts on whether fifty might speak a few people. 0:08:27.040 --> 0:08:30.080 I think, coming into a week ago that was the 0:08:30.160 --> 0:08:33.360 case that equity markets had certainly not started to think 0:08:33.400 --> 0:08:37.480 about a fifty basis points cut. Seeing futures markets rally 0:08:37.480 --> 0:08:39.400 to where they are now, maybe it's in their sphere 0:08:39.400 --> 0:08:42.199 of influence, but the bomb market and the equity markets 0:08:42.200 --> 0:08:44.360 certainly seemed to be set up for different courses of 0:08:44.400 --> 0:08:46.920 policy from here. The bomb market very much saying that 0:08:46.960 --> 0:08:48.800 the FED is behind the curve, and the equity market 0:08:48.800 --> 0:08:51.880 ready to sort of enjoy increasing gains. So let's feel 0:08:51.880 --> 0:08:54.440 like there's some unresolved issues as we move through this week. 0:08:54.880 --> 0:08:57.800 So in terms of the overall view on the American economy, 0:08:57.800 --> 0:08:59.920 do you think the FED has been able to engineer 0:09:00.160 --> 0:09:00.800 soft landing. 0:09:02.480 --> 0:09:04.440 I think it's too soon to say. We try and 0:09:04.440 --> 0:09:07.880 avoid making too much of a forecast in going into 0:09:07.880 --> 0:09:12.400 twenty twenty five. Instead, we're very much valuation lead investors. 0:09:12.400 --> 0:09:14.800 So looking back over the past few months, you know, 0:09:14.920 --> 0:09:17.600 April was really the time to put the trade on 0:09:17.720 --> 0:09:19.760 to look at the two year and the five year 0:09:19.800 --> 0:09:21.840 part of the curve. And now we're more interested in 0:09:21.840 --> 0:09:23.920 the long end of the curve because the threat does 0:09:23.920 --> 0:09:26.280 seem to be that, you know, if this hire for 0:09:26.360 --> 0:09:29.199 longer has played through there are these variable lags, then 0:09:29.520 --> 0:09:31.560 we do get a bit of a slow down there, 0:09:31.600 --> 0:09:34.160 and the longer end of the curve isn't pricing that. 0:09:34.240 --> 0:09:36.160 So we don't have a forecast, but I would say 0:09:36.160 --> 0:09:39.360 we're set up for a more cautious look into the 0:09:39.360 --> 0:09:40.920 rest of twenty four and into twenty five. 0:09:41.920 --> 0:09:45.440 One of the interesting developments of late with this idea 0:09:45.440 --> 0:09:47.760 of sliding from twenty five to fifty basis points, is 0:09:47.800 --> 0:09:51.280 that you've had breadth in the market advance, and you've 0:09:51.320 --> 0:09:54.320 seen quite a pretty strong rally here of late. 0:09:54.800 --> 0:09:55.240 A lot of. 0:09:55.200 --> 0:09:58.720 Companies that you know are not among the top tech company, 0:09:58.760 --> 0:10:01.840 not among the the twenty biggest companies in the world, 0:10:01.840 --> 0:10:04.280 that have benefited so much of le Do you buy 0:10:04.320 --> 0:10:06.240 that line that this is going to be much better 0:10:06.280 --> 0:10:08.040 for them? I think the thinking is it will lower 0:10:08.080 --> 0:10:10.679 their costs and runnings haven't been then great without it. 0:10:11.880 --> 0:10:14.120 I think the sentiment coming into this has really been 0:10:14.160 --> 0:10:18.040 the equity markets have shown a willingness to take on 0:10:18.200 --> 0:10:22.040 risk and bounce back, whereas the fundamental scene they may 0:10:22.080 --> 0:10:25.760 be more challenged. So I would say that we are 0:10:26.080 --> 0:10:30.280 more cautious on equities. Within that we only really talk 0:10:30.320 --> 0:10:34.079 about the headline industries here. We're big pitch and macro, 0:10:34.320 --> 0:10:37.480 so we're looking at that as being preferring the rest 0:10:37.480 --> 0:10:39.280 of the world to the US. 0:10:40.120 --> 0:10:41.840 So I'd like to get your view on China. We 0:10:41.880 --> 0:10:47.199 had the monthly activity data recently both industrial production, retail 0:10:47.280 --> 0:10:50.000 sales a little disappointing. I mean there was positivity there. 0:10:50.760 --> 0:10:53.040 The latest readings that we have seen when it comes 0:10:53.120 --> 0:10:56.840 to government figures on inflation show this economy is still 0:10:56.880 --> 0:11:01.720 struggling with deflation. Is is China a market that you 0:11:01.760 --> 0:11:03.960 want to dabble in right now or the risks simply 0:11:03.960 --> 0:11:04.439 too great. 0:11:05.800 --> 0:11:07.960 China's been a market that we've been active in for 0:11:08.000 --> 0:11:09.760 the past couple of years, and it's really been one 0:11:09.760 --> 0:11:14.120 where being a traaring has been fruitful. So being willing 0:11:14.160 --> 0:11:16.679 to step in when sentiment is as low and valuations 0:11:16.679 --> 0:11:19.560 as cheap, such as you know late January, has been rewarded. 0:11:19.800 --> 0:11:22.240 And perhaps taking profits in the sort of April to 0:11:22.280 --> 0:11:24.920 May space when things have felt better has been the 0:11:25.240 --> 0:11:27.200 way to trade it. And the reason for that really 0:11:27.280 --> 0:11:29.400 is that I think every client that we speak to 0:11:29.679 --> 0:11:31.640 wants to know if China's turned the corner. So while 0:11:31.640 --> 0:11:37.160 everyone's waiting for the turnaround story the data to look better, 0:11:37.480 --> 0:11:41.240 there's these tactical opportunities. A sentiment really fluctuates around a lot, 0:11:41.400 --> 0:11:43.400 so the data over the weekend and the day trail 0:11:43.480 --> 0:11:46.319 yesterday is further confirmation that, you know, China does have 0:11:46.360 --> 0:11:49.880 some material headwinds. You know, these deflationary challenges don't go 0:11:49.880 --> 0:11:54.440 away overnight. The policy response has been somewhat underwhelming to 0:11:54.520 --> 0:11:57.920 international investors. But within that, you know that the markets, 0:11:58.000 --> 0:12:00.840 you know, Hong Kong particularly, still trade on a single 0:12:00.840 --> 0:12:03.120 digit multiple, and that's attractive. Gives you some of the 0:12:03.200 --> 0:12:05.600 level of margin of safety going in there. If you 0:12:05.600 --> 0:12:10.160 can pair that up with finding the guts or the 0:12:10.200 --> 0:12:13.439 intestinal fortitude to make those trades when it feels difficult. 0:12:14.000 --> 0:12:18.840 Yeah, yeah, it's valuation helps a lot. So you're not 0:12:18.960 --> 0:12:21.320 really that fond of equities, although you know you're sort 0:12:21.320 --> 0:12:24.160 of picking and choosing in China, it seems like you're 0:12:24.559 --> 0:12:26.520 a little bit more interested in the bond market at 0:12:26.520 --> 0:12:29.760 the moment. So if we look more broadly at fixed income, 0:12:30.400 --> 0:12:34.840 is it sovereigns, is it credit? And inside credit? I mean, 0:12:34.920 --> 0:12:37.520 would you be you know, looking at high yield or 0:12:37.559 --> 0:12:38.480 investment grade? 0:12:39.160 --> 0:12:41.160 For us, it's really been the case the last few 0:12:41.240 --> 0:12:44.000 years of where the big swings in emotion and markets 0:12:44.040 --> 0:12:45.800 have really come in the bond market. You know, like 0:12:45.880 --> 0:12:47.920 we've seen people run from one side to the other 0:12:48.040 --> 0:12:51.520 several times and you get these points such as April, 0:12:51.520 --> 0:12:54.040 as I mentioned, after the CPI came in hot in 0:12:54.080 --> 0:12:57.000 the US where everyone was back to thinking about twenty 0:12:57.120 --> 0:12:59.640 twenty two again and maybe race even to go higher. 0:13:00.040 --> 0:13:01.920 So that's where we feel you get good odds, good 0:13:01.920 --> 0:13:05.360 asymmetry in entering these positions. Today is one of those 0:13:05.400 --> 0:13:08.400 markets where everyone's fixated on what's going to happen on Wednesday. 0:13:08.400 --> 0:13:10.760 With the FED, it's too close to cool. I'm not 0:13:10.760 --> 0:13:13.920 even sure that the FMC members quite know what the 0:13:13.960 --> 0:13:15.880 results going to be even now, maybe not until they 0:13:16.000 --> 0:13:19.120 drive to the meeting. So placing your chips on that 0:13:19.200 --> 0:13:23.559 right now as a small point feels like it's destined 0:13:23.600 --> 0:13:25.040 to try and be a hero with that one, and 0:13:25.080 --> 0:13:28.080 you know it's probably not good odds. So government bonds 0:13:28.120 --> 0:13:30.120 have come a long way, so we feel there's more 0:13:30.160 --> 0:13:32.800 to do there, but it's more in the long end 0:13:32.840 --> 0:13:34.840 of the curve. Sorry, just on your credit point, we 0:13:34.880 --> 0:13:36.600 don't have a lot of risk in credit right now. 0:13:37.000 --> 0:13:39.360 Years look attractive, but spreads are very tight. 0:13:40.600 --> 0:13:42.480 Maybe we can talk a little bit about Japan. The 0:13:42.920 --> 0:13:46.400 dynamics between the FED and the BOJ created an enormous 0:13:46.440 --> 0:13:49.880 amount of volatility in the end within the last several weeks, 0:13:49.920 --> 0:13:52.240 and right now, I mean we're looking at a one 0:13:52.360 --> 0:13:55.760 forty handle, which seems somewhat hard to believe. The velocity 0:13:55.800 --> 0:13:59.319 of change, how this is accelerated has just been kind 0:13:59.360 --> 0:14:02.400 of amazing to watch. What is your view first on 0:14:02.480 --> 0:14:05.200 the currency? I mean, are we to kind of accept 0:14:05.600 --> 0:14:07.880 yen volatility for a while longer? 0:14:08.960 --> 0:14:09.200 Yeah? 0:14:09.200 --> 0:14:11.160 I mean August was fun, wasn't it. I mean we 0:14:11.360 --> 0:14:14.760 saw quite the moves in markets, and they certainly as 0:14:14.760 --> 0:14:18.000 a tactical multi asset investor, that was interesting for us. 0:14:18.120 --> 0:14:20.080 I think what happened there was there was a lot 0:14:20.120 --> 0:14:23.720 of sentiment build up and then people got caught off side. 0:14:24.120 --> 0:14:26.960 The end has continued to power higher, and that really 0:14:27.040 --> 0:14:29.360 does look like it is rates driven. So as those 0:14:29.400 --> 0:14:32.720 thread futures have moved in towards fifty basis points, yend strengthened. 0:14:33.080 --> 0:14:35.440 So if we do get fifty basis points on Wednesday, 0:14:35.480 --> 0:14:37.080 that sort of moves past and maybe we see it 0:14:37.120 --> 0:14:40.800 flattening out of that yen volatility a little bit. On 0:14:40.880 --> 0:14:43.960 the twenty thirty of view, the yen is still competitive 0:14:44.080 --> 0:14:47.160 versus it has been. The Japanese economy is still attempting 0:14:47.240 --> 0:14:50.000 to reflate, So I think on a fundamental view, over 0:14:50.480 --> 0:14:52.720 five year period. You can still be positive on the 0:14:52.840 --> 0:14:54.760 en but it does feel like those interest rate moves 0:14:54.800 --> 0:14:58.040 are more or less in the price for what is expected. 0:14:58.640 --> 0:15:01.400 So if the FED does get moving here and has 0:15:01.400 --> 0:15:03.640 a little flourish with it, can the dollar become a 0:15:03.720 --> 0:15:05.000 kind of kerry currency. 0:15:05.920 --> 0:15:08.280 Ah, that's a good question. I mean, I think there's 0:15:08.280 --> 0:15:11.000 a lot of stays strong for the time being. I 0:15:11.000 --> 0:15:13.400 think there's too much of the reserve currency nature of it, 0:15:13.480 --> 0:15:15.160 but we have seen it weaken off a little bit 0:15:15.960 --> 0:15:18.440 from here that the yeend actually still looks like a 0:15:18.680 --> 0:15:21.280 attractive funding currency is part of a diversified basket, so 0:15:21.280 --> 0:15:23.560 I wouldn't necessarily rule that off the table despite the 0:15:23.960 --> 0:15:25.600 spot appreciation that we've seen. 0:15:25.920 --> 0:15:29.240 Best opportunity very quickly, Michael, that you are seeing across 0:15:29.320 --> 0:15:30.800 the APAC right now is what. 0:15:32.280 --> 0:15:36.120 In APAC. I think China is something we're looking at. 0:15:36.120 --> 0:15:38.320 We've taken a little bit of capital away from that, 0:15:38.360 --> 0:15:40.680 but we're seeing how the sentiment evolves. And again, if 0:15:40.720 --> 0:15:42.960 we get a better entry point where things feel depressed, 0:15:42.960 --> 0:15:45.600 I think we could see us adding to that and 0:15:45.680 --> 0:15:48.000 Japan on the long run. You know, the structural coase 0:15:48.120 --> 0:15:50.320 is still very much intact, but we've seen maybe a 0:15:50.320 --> 0:15:52.480 slightly better entry point over the past few weeks. 0:15:52.800 --> 0:15:54.960 All right, Michael, thank you very much for coming into 0:15:55.040 --> 0:15:57.640 our studios here, sitting down with us at the table. 0:15:57.680 --> 0:16:03.200 Michael Dyer, Investment Director, Equity and multi Asset at MG Investments. 0:16:10.080 --> 0:16:12.520 So let's take a closer look at the attempt on 0:16:12.960 --> 0:16:16.560 Donald Trump's life and other assassination attempt. Joining us now, 0:16:16.600 --> 0:16:20.440 Bill Ferries, Bloomberg Senior Editor. He's with us from our 0:16:20.520 --> 0:16:24.080 studios in Singapore. Does it surprise you, Bill that the 0:16:24.080 --> 0:16:27.200 former president is trying to capitalize on this event? 0:16:29.080 --> 0:16:32.520 No, not at all. Listen, after that first assassination attempt, 0:16:32.520 --> 0:16:34.720 and it's hard to believe we're talking about too now, 0:16:34.800 --> 0:16:39.480 but after that first one, you saw the president get 0:16:39.480 --> 0:16:42.600 a bump in the polls. There was there was a 0:16:42.680 --> 0:16:45.800 lot of people had, you know, sympathy, and what came 0:16:45.840 --> 0:16:49.560 at a time when when Joe Biden's campaign was basically imploding, 0:16:50.880 --> 0:16:54.400 and you know, the past week or so leading into 0:16:54.560 --> 0:16:57.720 this second assassination attempt had been a really rough one 0:16:57.760 --> 0:17:00.360 for the former president. It was coming off off that 0:17:00.560 --> 0:17:05.040 debate with Kamala Harris Tuesday last week that didn't go 0:17:05.200 --> 0:17:08.320 particularly well for the former president and a lot of 0:17:08.320 --> 0:17:12.879 the political discussion since then had been focused on whether 0:17:13.359 --> 0:17:17.840 immigrants in Ohio were eating people's pets or not, not 0:17:18.040 --> 0:17:22.960 really a winning issue for the Republicans. So this latest 0:17:23.000 --> 0:17:27.639 news out of Florida is essentially a chance for the 0:17:27.640 --> 0:17:31.240 Trump campaign to kind of turn the page, start new 0:17:31.320 --> 0:17:34.080 with seven weeks to go, literally seven weeks from today, 0:17:34.600 --> 0:17:37.280 and try to focus on issues that are a little 0:17:37.280 --> 0:17:39.679 more important to voters. And they're going to do that 0:17:39.760 --> 0:17:44.080 by attacking the Harris campaign, and I would assume by 0:17:44.200 --> 0:17:46.240 starting to focus on things like the economy. 0:17:47.480 --> 0:17:51.040 Assassination attempts are not really all that common. It's a 0:17:51.080 --> 0:17:54.040 little surprising we've had a couple here just of late. 0:17:54.440 --> 0:17:56.040 Prior to that, it seemed like we've gone through a 0:17:56.080 --> 0:17:58.920 fairly long period. I remember thinking just on a walk 0:17:59.000 --> 0:18:02.560 recently that you know that we we'd move beyond that 0:18:02.680 --> 0:18:06.639 in the world, obviously more so in the United States 0:18:06.680 --> 0:18:09.920 because you have had assassinations elsewhere, But kind of belaboring 0:18:09.920 --> 0:18:12.320 the point, what's changed. Why are we seeing this now? Bill? 0:18:13.320 --> 0:18:16.640 You know, I think it's there's been this process over 0:18:16.920 --> 0:18:20.040 over maybe the last decade where the political rhetoric has 0:18:20.040 --> 0:18:25.680 become more heated. People's views of politics have have become 0:18:26.040 --> 0:18:26.720 more hardened. 0:18:27.280 --> 0:18:27.399 Uh. 0:18:27.440 --> 0:18:29.280 You know, I think you see that in a lot 0:18:29.320 --> 0:18:32.080 of you know, even families, see that within within their 0:18:32.119 --> 0:18:36.040 own family, but within communities. Between red states and blue states, 0:18:36.080 --> 0:18:38.359 you know, people's views are are a lot more fixed, 0:18:38.400 --> 0:18:41.960 and they're a lot more strident. Uh. There doesn't seem 0:18:42.000 --> 0:18:44.840 to be quite as much. Uh, there's not quite as 0:18:44.920 --> 0:18:48.119 much vote. There aren't quite as many voters who you know, 0:18:48.280 --> 0:18:51.800 sometimes are with Democrats and sometimes with Republicans. People are 0:18:51.840 --> 0:18:54.800 are sticking to their sides now, so uh. And I 0:18:54.800 --> 0:18:58.360 think the online you know, the Twitter wars, the social 0:18:58.400 --> 0:19:02.360 media wars, feeds into some of that. So, you know, 0:19:02.400 --> 0:19:05.040 you often have people who get worked up about it 0:19:05.119 --> 0:19:10.240 and go, you know, much too far with their political 0:19:10.520 --> 0:19:11.480 political actions. 0:19:11.840 --> 0:19:14.879 With yesterday's event, I was struck by the fact that, Okay, 0:19:14.920 --> 0:19:17.399 it was mid July that the first attempt was made, 0:19:17.480 --> 0:19:20.800 Yesterday made the second. It was nineteen seventy five when 0:19:21.240 --> 0:19:25.880 Gerald Ford survived two assassination attempts in California. Brian probably 0:19:25.920 --> 0:19:29.040 remembers this. I think he was in southern California at 0:19:29.040 --> 0:19:32.080 the time. At that time, I don't think that there 0:19:32.160 --> 0:19:34.680 was much in the way of criticism on the Secret Service. 0:19:35.200 --> 0:19:39.000 Different story these days, particularly in the incident that happened 0:19:39.000 --> 0:19:42.960 in July and Butler, Pennsylvania. How do you feel the 0:19:43.040 --> 0:19:45.359 Secret Service has been able to deal with this? What 0:19:45.480 --> 0:19:48.360 do we know about what we have heard from from 0:19:48.480 --> 0:19:51.200 Secret Service authorities? Bill Well? 0:19:51.240 --> 0:19:54.600 According to the Secret Service, they did ramp up security 0:19:54.640 --> 0:19:58.520 for the former president in the aftermath of that first attempt, 0:19:58.600 --> 0:20:01.639 where they were widely criticiz Eyes for, you know, leaving 0:20:01.680 --> 0:20:04.800 the roof of that building with a direct line of 0:20:04.880 --> 0:20:09.480 sight of the stage unprotected. This time, you know, the 0:20:09.520 --> 0:20:12.440 initial reports are that, you know, the Secret Service agent 0:20:12.480 --> 0:20:15.359 who was one hole ahead of Donald Trump on the 0:20:15.359 --> 0:20:19.280 golf course did a great job spotting a rifle coming 0:20:19.280 --> 0:20:22.800 through the fence and directing fire that way may have 0:20:22.920 --> 0:20:26.560 prevented a tragedy, but there's still going to be some 0:20:26.680 --> 0:20:29.320 very hard questions about how the gunman was able to 0:20:29.400 --> 0:20:33.479 apparently camp out on that fence line for about twelve 0:20:33.480 --> 0:20:38.119 hours ahead of time with an AK forty seven type 0:20:38.240 --> 0:20:41.480 rifle and not be detected. We're learning now The New 0:20:41.560 --> 0:20:44.160 York Times is just reporting that the Secret Service says 0:20:44.400 --> 0:20:47.600 it didn't scout out the perimeter of the golf course 0:20:47.680 --> 0:20:51.680 before Trump went out to play. There's I think going 0:20:51.720 --> 0:20:54.639 to be almost inevitably a focus on whether the Secret 0:20:54.720 --> 0:20:58.600 Service needs some more financial resources, whether they need more 0:20:58.640 --> 0:21:01.840 agents out there, and and I wouldn't be surprised if 0:21:02.119 --> 0:21:06.520 the security perimeter around both Donald Trump and Kamala Harris 0:21:06.680 --> 0:21:08.040 gets built up even more. 0:21:08.640 --> 0:21:11.240 Bill, thank you for making time for us. I'm sure 0:21:11.240 --> 0:21:12.920 you've got a lot on your plate there at the 0:21:12.960 --> 0:21:17.760 Bloomberg News offices in Singapore. Bill Ferries, Bloomberg Senior Editor, 0:21:18.160 --> 0:21:21.160