WEBVTT - Trade Talk Optimism Caps APAC Trading Week

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Welcome to the Bloomberg Daybreak Asia Podcast. I'm Charlie Pellan.

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<v Speaker 2>Doug Chrisner is off this week Asian stocks inch tire

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<v Speaker 2>at the Friday open after President Trump announced a trade

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<v Speaker 2>deal with the United Kingdom. Coming up, we'll get reaction

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<v Speaker 2>from Bloomberg News Senior editor Derek Wallbank, plus a look

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<v Speaker 2>at the market landscape with Eli Lee, chief investment strategist

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<v Speaker 2>at the Bank of Singapore. On Thursday, President Trump signaled

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<v Speaker 2>tariffs on Chinese goods may fall if upcoming talks go well.

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<v Speaker 2>We got some analysis from former Assistant US Trade Representative

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<v Speaker 2>for China Affairs, Claire Red now senior counsel at Arnold

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<v Speaker 2>and Porter. Reid spoke with Bloomberg's Sherry On and Heidi

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<v Speaker 2>Stroud Watts Clay.

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<v Speaker 3>Really great to have you with us. So so get

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<v Speaker 3>your reaction to this agreement that's been secure between the

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<v Speaker 3>US and the UK. I suppose it's a good starting point,

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<v Speaker 3>but of course everyone's watching for the main talks between

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<v Speaker 3>China and the US.

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<v Speaker 4>Yes, well, I don't think that the UK deal should

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<v Speaker 4>be viewed as anything like a template for the China deal.

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<v Speaker 4>It's uh, it's like they're know Yin and Yang maybe

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<v Speaker 4>where the UK is a very easy deal. There's no

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<v Speaker 4>trade deficit. You basically don't have a lot of conflict

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<v Speaker 4>with them and trade, and so it was relatively easy

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<v Speaker 4>to come up with, you know, a big deal. Uh supposedly, Uh,

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<v Speaker 4>a quick deal. I think we can definitely say it's quick,

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<v Speaker 4>and I think it will be. I'm sure text is

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<v Speaker 4>being written and that it will come out, but you know,

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<v Speaker 4>no time frames for any of that. So it's uh,

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<v Speaker 4>it's it's really quite a working progress. I would say,

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<v Speaker 4>I think Trump probably needed to announce something and Britain

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<v Speaker 4>was probably willing to participate because it does give them

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<v Speaker 4>a little bit of a sense of security. China is

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<v Speaker 4>a totally different story. China has we have a very

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<v Speaker 4>complex relationship with them. Trump already secured a deal in

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<v Speaker 4>its first administration that didn't go that well, and I

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<v Speaker 4>think it's going to be a complicated negotiation that is

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<v Speaker 4>going to start by trying to see if you can

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<v Speaker 4>de escalate the tariff levels, which seem to be really

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<v Speaker 4>harming both sides of the equation right now. So there

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<v Speaker 4>is definitely self interest in trying to make that happen

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<v Speaker 4>relatively soon. The other issues could take months, years, or

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<v Speaker 4>never get sold.

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<v Speaker 3>Yeah, it's interesting. You know, some critics calling this UK

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<v Speaker 3>deal a nothing burger, right, so many of the details

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<v Speaker 3>left to be determined. Clearly, there's sort of the optics

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<v Speaker 3>politically of seeing an off ramp and a deal to

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<v Speaker 3>be seen to be made. Is it all so much

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<v Speaker 3>challenging from China? Because from the outset, their sort of

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<v Speaker 3>negotiating position is that the US started this, that they've

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<v Speaker 3>been erroneous in an unfair in the way that they've

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<v Speaker 3>approached this, and that they need to kind of show

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<v Speaker 3>some degree of good faith and of contrition before they

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<v Speaker 3>can even have proper negotiations.

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<v Speaker 4>That definitely was China's and has been China's line, But

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<v Speaker 4>you will probably recognize that China also had said that

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<v Speaker 4>it wasn't going to start any talks until the United

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<v Speaker 4>States took the tariffs off, And there have been no

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<v Speaker 4>tariffs taken off, so and the talks are starting. So

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<v Speaker 4>I think we will see China, which is there are

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<v Speaker 4>very good negotiators. We will see them exhibit some flexibility

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<v Speaker 4>to the extent they don't feel they're losing face, and

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<v Speaker 4>that they feel that it's basically in their self interest.

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<v Speaker 1>So we'll see, and they definitely don't want to lose

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<v Speaker 1>faiths when it comes to Hong Kong issues Taiwan issues.

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<v Speaker 1>Why is President Trump talking about Jimmy and Lai?

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<v Speaker 4>You never know why President Trump is talking about anyone,

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<v Speaker 4>and certainly he pays more attention to the very wealthy.

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<v Speaker 4>I would say, so it probably crossed his TV screen,

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<v Speaker 4>or maybe there's a Trump insider who has spoken to

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<v Speaker 4>him about Jimmy Low. Those would be my two highest hypotheticals,

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<v Speaker 4>I guess.

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<v Speaker 1>But the point is that this will not help, right

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<v Speaker 1>I mean, you're conflating political issues with economic issues. We

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<v Speaker 1>do know that right now the pushback against China is geopolitical.

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<v Speaker 1>But at the same time, if you put issues like

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<v Speaker 1>this on the table, what does President Trump hope to

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<v Speaker 1>achieve in these negotiations with Beijing that he can take

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<v Speaker 1>back to the American public and say that it's a win.

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<v Speaker 4>Trump has demonstrated from his first term that he is

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<v Speaker 4>not someone who's concerned about human rights or various humanitarian

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<v Speaker 4>issues in the China relationship. He's very good at declaring wins,

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<v Speaker 4>regardless of what the underlying fats are, so I don't

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<v Speaker 4>have any doubt that he will declare a win. The

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<v Speaker 4>question is really going to be what can both sides give.

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<v Speaker 4>What seems to be the easiest thing to give on

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<v Speaker 4>both sides is to reduce tariffs on most of the

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<v Speaker 4>goods down to something other than an embargoed level. But

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<v Speaker 4>after that, I think there's a huge gap between the

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<v Speaker 4>two sides. China can also show good faith by demonstrating

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<v Speaker 4>what it's been doing to help on fentanyl, and that

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<v Speaker 4>would be a positive. But I think Trump is fundamentally

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<v Speaker 4>a businessman, and if he sees a deal that he

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<v Speaker 4>thinks he can sell back in the United States, that's

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<v Speaker 4>a deal he'll take, but it will be focused on

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<v Speaker 4>the commercial side largely. I don't think this is a

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<v Speaker 4>transformed Trump who is now going to be worrying about

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<v Speaker 4>Hong Kong democracy or Shinjuang forest labor.

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<v Speaker 3>Claire, What do you think is a level of internal

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<v Speaker 3>pain that Beijing is willing to accept, given that we

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<v Speaker 3>know there's a certain level of sort of galvanizing national

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<v Speaker 3>sentiment domestically, and they've also been on this big outreach

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<v Speaker 3>program to other partners, you know, allies and perhaps even

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<v Speaker 3>flows alike to try and garner these new relationships. Do

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<v Speaker 3>you think there is a certain level whether they'll still

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<v Speaker 3>hold back even if they don't obviously want these tariffs

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<v Speaker 3>in place.

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<v Speaker 4>China is going to be looking at this from a

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<v Speaker 4>long term perspective, and I think at this point from

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<v Speaker 4>quite a I would say pessimistic perspective on what they

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<v Speaker 4>can expect from the relationship from the United States. There

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<v Speaker 4>will be no more G two a special relationship between

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<v Speaker 4>the two largest economic forces in the world. I think

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<v Speaker 4>it's going to be a very pragmatic, very realistic effort

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<v Speaker 4>to get things to a point where they're as good

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<v Speaker 4>as they can be. But China is not going to

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<v Speaker 4>change any of its fundamental economic structure or any of

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<v Speaker 4>its priorities. It's not going to change the dominance of

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<v Speaker 4>its state owned enterprises. And if there's going to be

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<v Speaker 4>anything done to reduce the excess flow of Chinese goods

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<v Speaker 4>at very low prices into the global trading system that

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<v Speaker 4>is causing the industries in the trading partners countries to collapse,

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<v Speaker 4>if any going to be done about that, I think

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<v Speaker 4>that's going to have to be in the form of

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<v Speaker 4>export restraints or some mechanical barrier to the exports going

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<v Speaker 4>out from China. There will be no structural changes that

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<v Speaker 4>China will accept.

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<v Speaker 1>Clary always great to get your insights, Senior counselor at

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<v Speaker 1>Arnold and Porter.

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<v Speaker 2>Welcome back to the Daybreak Asia podcast. I'm Charlie Pellatt

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<v Speaker 2>in for Doug Crisner. This week, as the US prepared

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<v Speaker 2>for the start of talks with China, the biggest target

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<v Speaker 2>of Trump's tariff onslaught, the President said he believed negotiations

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<v Speaker 2>might result in tangible progress. For more, we heard from

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<v Speaker 2>Eli Lee, chief investment strategist at the Bank of Singapore.

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<v Speaker 2>He spoke with Bloomberg, shrry On and Heidi Stroud Watts.

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<v Speaker 1>Eli, great to have you with us. I mean, we

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<v Speaker 1>have seen the optimism and the hope coming from investors

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<v Speaker 1>right now as we continue to see that risk on

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<v Speaker 1>gains in the Asian session as well. How much are

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<v Speaker 1>your banking on these negotiations.

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<v Speaker 5>Right so, I think you know, the earlier command that

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<v Speaker 5>this was pretty much nutting burger was interesting. I think

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<v Speaker 5>beyond the pumping ceremony, there was really very little in

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<v Speaker 5>the way of substance, and I think there are two

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<v Speaker 5>important things. That's happening here, Sherry. Number one, the fact

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<v Speaker 5>that UK, one of is one of us our most

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<v Speaker 5>favored partners, eventually still got a ten percent rate tells

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<v Speaker 5>us that this is the probably the lowest we can

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<v Speaker 5>expect from most of you know, the rest of the

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<v Speaker 5>trade negotiations. And number two, the fact that I think

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<v Speaker 5>China is much more entrenched in a tip for ted

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<v Speaker 5>escalation versus the UK is that we can expect the

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<v Speaker 5>process with China going forward in terms of trade negotiations

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<v Speaker 5>to be much more of an odyssey versus the UK. And

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<v Speaker 5>that means that we should be a little bit circumspect

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<v Speaker 5>about the positive reaction that we're seeing in the markets

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<v Speaker 5>of the Nichera.

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<v Speaker 1>But when it comes to the markets, it's really looking ahead, right,

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<v Speaker 1>and we have seen investors trying to grasp at anything

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<v Speaker 1>that potentially could mean more gains. So, relatively speaking, would

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<v Speaker 1>this be a time to buy or would this be

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<v Speaker 1>a time to sell?

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<v Speaker 5>I think this is an interesting point in market, and

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<v Speaker 5>that's a great question. I think we are seeing these

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<v Speaker 5>historical almost gap in evaluations between US and the rest.

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<v Speaker 5>Much of this is a consequence of the US exceptionalism

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<v Speaker 5>narrative over the last twelve to twenty four months and

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<v Speaker 5>that is starting to reverse. So we think that the

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<v Speaker 5>US equities market is probably you know, but its skis

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<v Speaker 5>a little bit right now. But we see opportunities in

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<v Speaker 5>the Hong Kong China markets and also in Europe as well.

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<v Speaker 3>Europe is an interesting one, right, you're neutralizing the US

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<v Speaker 3>positioning in favor of overweight in Europe. What are youking still?

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<v Speaker 3>And I guess has that narrative change from earlier the

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<v Speaker 3>sort of defense rearmament driven story for Europe?

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<v Speaker 5>All right, So we think that you know the implications

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<v Speaker 5>of what's happening in Europe, that fiscal easing that we're

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<v Speaker 5>going to see still, you know, rid cuts in tontal

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<v Speaker 5>monetary easing really will have a pretty wide ranging effects.

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<v Speaker 5>So outside of defense, I think infrastructure is going to

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<v Speaker 5>be a very big theme that we're looking into as

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<v Speaker 5>well there and within Europe, we continue to think that

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<v Speaker 5>the energy transition increased energy efficiency narrative continues to be

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<v Speaker 5>quite strong and there are some interesting names and opportunities

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<v Speaker 5>there as visually, ELI, what.

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<v Speaker 3>Is the risk or opportunity that you're seeing from some

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<v Speaker 3>of the currency volatility, particularly the recent surge in Asian

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<v Speaker 3>currency strength that we've.

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<v Speaker 5>Had, right so, I think that's very telling of what

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<v Speaker 5>international investors are things thinking of, uh, you know, Asia's positioning,

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<v Speaker 5>especially Chinese positioning in this tariff war versus the US.

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<v Speaker 5>A lot of this is the function of the weakness

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<v Speaker 5>of the US dollar, I think, you know, and the

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<v Speaker 5>twin deficits. I think investors are going to demand a

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<v Speaker 5>much weaker US dollar, much higher US US to continue

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<v Speaker 5>financing the twin deficits in the US, and that means

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<v Speaker 5>a weaker US dollar, stronger Asian currencies. And primarily we

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<v Speaker 5>think that China is going to be a big you know,

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<v Speaker 5>uh stakeholder in how Asian currencies perform. And the fact

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<v Speaker 5>that they've continued to push towards having a relative US

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<v Speaker 5>and stability over the last month or so tells us

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<v Speaker 5>that we will likely see steady uptrend, a steady up

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<v Speaker 5>trained in Asian currencies.

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<v Speaker 1>Ahead the stability that you talk about when it comes

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<v Speaker 1>to the Chinese yuon what does that mean for other

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<v Speaker 1>Chinese assets?

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<v Speaker 5>Right so, we think that there are three tailwinds for

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<v Speaker 5>Chinese atsets going forward. I think number one, the fact

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<v Speaker 5>is that the Chinese economy is much strongly much more,

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<v Speaker 5>you know, more strongly positioned for a trade war with

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<v Speaker 5>the US versus Trump's first term. I think US export

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<v Speaker 5>is now less than three percent of the Chinese GDP. Second,

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<v Speaker 5>there is still a lot of dry powder in terms

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<v Speaker 5>of policy easing from China to come that's installed and

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<v Speaker 5>will come. And finally, we do think that the valuations

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<v Speaker 5>in Chinese assets continue to be quite undemanding, which will

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<v Speaker 5>draw interest from international investors, especially if we do see

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<v Speaker 5>you know, the end of the Russian UK trade war,

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<v Speaker 5>Russia being a key a lot of China, and that

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<v Speaker 5>means that you know, the relative strength that we've seen

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<v Speaker 5>in Chinese assets over the last month or so wildly continue.

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<v Speaker 3>El I really great to have you with us Cili.

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<v Speaker 3>He's a chief investment strategist at Bank of Singapore.

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<v Speaker 6>I believe, but serious, pragmatic in the room negotiations, acting

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<v Speaker 6>in the national interests are far better than performative politics.

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<v Speaker 6>People flat slamming the door, floundering out, you know, being

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<v Speaker 6>performative but not actually delivering for working people. And I'll

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<v Speaker 6>continue in the same vein We've had two trade deals

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<v Speaker 6>this week. By acting in that way.

0:14:20.200 --> 0:14:21.720
<v Speaker 7>Well it could be I mean we're going to see

0:14:21.800 --> 0:14:24.240
<v Speaker 7>right now, you can't get any higher. It's one hundred

0:14:24.240 --> 0:14:27.160
<v Speaker 7>and forty five, so we know what's coming down. I

0:14:27.240 --> 0:14:30.040
<v Speaker 7>think we're going to have a very good relationship UK.

0:14:30.080 --> 0:14:33.040
<v Speaker 3>Prime Minister Kirstama there and President Trump talking about those

0:14:33.600 --> 0:14:36.920
<v Speaker 3>trade negotiations, tariffs, the framework of a trade deal. There,

0:14:37.240 --> 0:14:39.520
<v Speaker 3>let's get some more on this with that, Bloomberg Senior

0:14:39.640 --> 0:14:43.720
<v Speaker 3>Editor Derek Wallbank and Derek. Framework is sort of the

0:14:43.800 --> 0:14:46.040
<v Speaker 3>phrase that we're using. Some of the reaction has been

0:14:46.080 --> 0:14:49.320
<v Speaker 3>pretty scathing, one analyst calling it a nothing burger.

0:14:50.200 --> 0:14:50.840
<v Speaker 1>What's your take?

0:14:51.720 --> 0:14:53.480
<v Speaker 8>I mean, my take, Heidi, is that it takes the

0:14:53.520 --> 0:14:56.240
<v Speaker 8>temperature down. I mean, you look, you have to start

0:14:56.320 --> 0:14:58.520
<v Speaker 8>there before you get into the substance. And you know,

0:14:58.600 --> 0:15:01.040
<v Speaker 8>I'm a substance guy. I love my details, I love

0:15:01.120 --> 0:15:05.440
<v Speaker 8>my policy papers, but you know, I'm also a tone guy.

0:15:05.680 --> 0:15:09.080
<v Speaker 8>And we had been sitting here in a situation over

0:15:09.160 --> 0:15:12.040
<v Speaker 8>the last month and a couple of days where the

0:15:12.120 --> 0:15:14.680
<v Speaker 8>whole world was sort of sat there wondering, what in

0:15:14.760 --> 0:15:17.160
<v Speaker 8>the world is it going to take to bring the

0:15:17.320 --> 0:15:20.800
<v Speaker 8>US down a notch on some of these tariffs, especially

0:15:20.920 --> 0:15:24.160
<v Speaker 8>after the Liberation Day announcements that Trump made, you know,

0:15:24.760 --> 0:15:28.240
<v Speaker 8>jacking tariff rates up to quite high levels on a

0:15:28.320 --> 0:15:30.560
<v Speaker 8>lot of trading partners, and then up to one hundred

0:15:30.560 --> 0:15:34.000
<v Speaker 8>and forty five percent on most everything from China, continued

0:15:34.080 --> 0:15:39.000
<v Speaker 8>sectoral threats to everything from pharma to lumber, to movies

0:15:39.080 --> 0:15:41.760
<v Speaker 8>to you name it. And the thing that you and

0:15:41.920 --> 0:15:45.280
<v Speaker 8>I and Sherry have been talking about over the last

0:15:45.520 --> 0:15:48.040
<v Speaker 8>month and so was that we were all going to

0:15:48.080 --> 0:15:51.160
<v Speaker 8>be looking for deal number one. What was going to

0:15:51.200 --> 0:15:53.480
<v Speaker 8>be the context of deal number one, who was it

0:15:53.560 --> 0:15:54.920
<v Speaker 8>going to be with, and what was it going to

0:15:55.000 --> 0:15:58.240
<v Speaker 8>take to get there. There's one way of looking at

0:15:58.280 --> 0:16:00.440
<v Speaker 8>this that says, this is a top line deal that

0:16:00.640 --> 0:16:02.840
<v Speaker 8>has a couple of commitments and his scant on a

0:16:02.920 --> 0:16:06.240
<v Speaker 8>lot of things and bears little resemblance to one of

0:16:06.320 --> 0:16:10.520
<v Speaker 8>those giant, massive trade packs that gets negotiated over a

0:16:10.640 --> 0:16:13.000
<v Speaker 8>year or two years or five years or whatever. The

0:16:13.160 --> 0:16:15.600
<v Speaker 8>other way to look at this is to say, oh,

0:16:15.720 --> 0:16:20.280
<v Speaker 8>that's what it takes, okay, noted copy paste, And you're

0:16:20.320 --> 0:16:22.320
<v Speaker 8>going to see a lot of countries around the world

0:16:22.400 --> 0:16:25.520
<v Speaker 8>trying to figure out how do we get ourselves in

0:16:25.640 --> 0:16:29.080
<v Speaker 8>the position that Britain was in consider secure. Starmer is

0:16:29.200 --> 0:16:35.520
<v Speaker 8>not somebody who got elected as some Trump loving individual. Right,

0:16:36.000 --> 0:16:39.720
<v Speaker 8>he's a Labor Party Prime minister with at least two

0:16:39.800 --> 0:16:43.160
<v Speaker 8>other parties in the United Kingdom dedicated at their roots

0:16:43.240 --> 0:16:47.040
<v Speaker 8>to trying to be closer to the Republican side of

0:16:47.080 --> 0:16:50.600
<v Speaker 8>the isle in a British context, So he's not exactly

0:16:50.720 --> 0:16:54.400
<v Speaker 8>somebody who's ideological soulmates with this president. Figure out a

0:16:54.440 --> 0:16:56.120
<v Speaker 8>way to go through, figure out a way to take

0:16:56.200 --> 0:16:58.760
<v Speaker 8>down the temperature, and that's going to be something that

0:16:58.880 --> 0:17:02.080
<v Speaker 8>I think every government around the world is going to copy.

0:17:02.240 --> 0:17:04.960
<v Speaker 8>So in those context, I would say this is a

0:17:05.080 --> 0:17:06.440
<v Speaker 8>highly consequential moment.

0:17:07.359 --> 0:17:09.800
<v Speaker 1>And yeah, as you mentioned, it really didn't include a

0:17:09.840 --> 0:17:12.160
<v Speaker 1>lot of the details, right, especially some of those things

0:17:12.200 --> 0:17:15.520
<v Speaker 1>that American businesses we're looking for, like the change in

0:17:15.600 --> 0:17:18.440
<v Speaker 1>the digital services tax that hit many US tech forums

0:17:18.480 --> 0:17:21.119
<v Speaker 1>already didn't get any change when it comes to street

0:17:21.600 --> 0:17:25.920
<v Speaker 1>food regulations, when it comes to US agriculture really wanting

0:17:25.960 --> 0:17:28.600
<v Speaker 1>a piece of the pie as well. So what's next

0:17:28.720 --> 0:17:30.479
<v Speaker 1>for this relationship.

0:17:31.119 --> 0:17:33.480
<v Speaker 8>Well, Cherry, I think, look, Trump has signaled he wants

0:17:33.520 --> 0:17:35.960
<v Speaker 8>to have a very warm relationship with the United Kingdom.

0:17:36.040 --> 0:17:38.480
<v Speaker 8>I think that if you look at this from a

0:17:38.560 --> 0:17:42.119
<v Speaker 8>purely British context, this is a country that's been searching

0:17:42.200 --> 0:17:46.200
<v Speaker 8>for any sort of dividend after Brexit. A lot of

0:17:47.280 --> 0:17:50.399
<v Speaker 8>the British attention is focused across the Atlantic, but a

0:17:50.480 --> 0:17:53.199
<v Speaker 8>lot of the British economy is focused across the English

0:17:53.320 --> 0:17:56.639
<v Speaker 8>Channel and across the Irs c right, and so you

0:17:56.760 --> 0:18:00.119
<v Speaker 8>have a lot of businesses that have made decisions with

0:18:00.520 --> 0:18:03.120
<v Speaker 8>the words Paris and Amsterdam and Dublin in their mind

0:18:03.760 --> 0:18:06.280
<v Speaker 8>that now are sitting there looking at a situation where

0:18:06.520 --> 0:18:09.520
<v Speaker 8>the UK has better trade terms with America than the

0:18:09.560 --> 0:18:13.000
<v Speaker 8>European Union does, and certainly better path and prospects there.

0:18:13.359 --> 0:18:16.320
<v Speaker 8>So that puts the UK into a relative situation that

0:18:16.480 --> 0:18:19.760
<v Speaker 8>is maybe slightly more advantageous than they were this time

0:18:19.840 --> 0:18:21.600
<v Speaker 8>a month and a half ago. So that's I think

0:18:21.720 --> 0:18:25.040
<v Speaker 8>on that context. On the other side, look, we've seen

0:18:25.160 --> 0:18:27.400
<v Speaker 8>US officials talk about how they're trying to get other

0:18:27.520 --> 0:18:32.000
<v Speaker 8>things over the table. You know, I know that India, Japan,

0:18:32.320 --> 0:18:37.000
<v Speaker 8>Israel are all places where we have reported that talks

0:18:37.040 --> 0:18:42.600
<v Speaker 8>are ongoing or you've seen big kind of outreaches vance

0:18:42.680 --> 0:18:46.560
<v Speaker 8>to India, net Nyahu, to the White House, Trump stopping

0:18:46.600 --> 0:18:49.520
<v Speaker 8>by a meeting with Japanese negotiators. You don't have to

0:18:50.359 --> 0:18:52.400
<v Speaker 8>you know, sort of read into a magic eight ball

0:18:52.440 --> 0:18:54.960
<v Speaker 8>too much to see where things like that are going

0:18:55.000 --> 0:18:57.080
<v Speaker 8>and where the levels of seriousness are. So I think

0:18:57.080 --> 0:18:59.919
<v Speaker 8>there's some work on that. But look my eyes right now.

0:19:00.000 --> 0:19:02.960
<v Speaker 8>We'll go to this weekend, go to Switzerland and go

0:19:03.119 --> 0:19:06.439
<v Speaker 8>to the meetings that Scott Bessntt and Jamison Greer are

0:19:06.520 --> 0:19:11.840
<v Speaker 8>going to have with Chinese counterparts. The question there, asked

0:19:11.840 --> 0:19:14.159
<v Speaker 8>by our m Marie Hordern and the White House, was

0:19:14.400 --> 0:19:17.200
<v Speaker 8>you know, is there a chance of not preemptively, but

0:19:17.440 --> 0:19:20.800
<v Speaker 8>after if things go well, of taking things down on

0:19:20.880 --> 0:19:23.800
<v Speaker 8>the tariff level. Trump said, there's certainly a chance. You know,

0:19:23.920 --> 0:19:25.959
<v Speaker 8>all things are possible. We live in the world now

0:19:26.000 --> 0:19:29.399
<v Speaker 8>where the pope's a Chicago guy who went to Villanova,

0:19:29.520 --> 0:19:33.120
<v Speaker 8>So all things are possible in this world. And let's

0:19:33.119 --> 0:19:35.760
<v Speaker 8>see what happens as a result of that. Bessont said

0:19:36.760 --> 0:19:40.040
<v Speaker 8>that this was about de escalation, not a massive trade deal.

0:19:40.160 --> 0:19:43.480
<v Speaker 8>De Escalation is certainly a possibility. Let's see where we

0:19:43.600 --> 0:19:45.680
<v Speaker 8>are this time on Monday, Boom.

0:19:45.680 --> 0:19:47.440
<v Speaker 1>We're senior editor Derek Wallbank.

0:19:47.520 --> 0:19:47.680
<v Speaker 8>There.

0:19:50.080 --> 0:19:53.400
<v Speaker 9>Thanks for listening to today's episode of the Bloomberg Daybreak

0:19:53.600 --> 0:19:56.960
<v Speaker 9>Asia Edition podcast. Each weekday, we look at the story

0:19:57.080 --> 0:20:01.359
<v Speaker 9>shaping markets finance and geopolitics in the Asia Pacific. You

0:20:01.440 --> 0:20:05.520
<v Speaker 9>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:20:05.680 --> 0:20:08.639
<v Speaker 9>or anywhere else you listen. Join us again tomorrow for

0:20:08.800 --> 0:20:12.280
<v Speaker 9>insight on the market moves from Hong Kong to Singapore

0:20:12.720 --> 0:20:16.440
<v Speaker 9>and Australia. I'm Doug Prisoner and this is Bloomberg