WEBVTT - Stocks in Asia Decline as Chipmaker Rally Pauses

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

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Dan Schwartzman. Doug

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<v Speaker 2>Chrisner has a week off Asian stock slip Thursday after

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<v Speaker 2>a recent tech led rally on w washreet paused crude

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<v Speaker 2>oil edge lower as you run, reached an agreement with

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<v Speaker 2>Oman on the Street or horror Mouz from more in

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<v Speaker 2>the markets, Bloomberg's Heidi Shroud Watts spoke to Kerry Craig,

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<v Speaker 2>Global Market Strategist to JP Morgan Asset Management.

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<v Speaker 1>We were just sort of chuckling earlier about how you're

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<v Speaker 1>getting the same thematic of questions from clients at the moment.

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<v Speaker 3>What do they want to know?

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<v Speaker 4>Yeah, it's a pretty consistent understanding of what's happening in

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<v Speaker 4>the markets. Obviously, there's been all this investment around the

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<v Speaker 4>aikpex theme, and it's all about when that comes to

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<v Speaker 4>fruition in terms of thinking about that revenue generation and

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<v Speaker 4>that return on that investment that you know, investors are

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<v Speaker 4>grappling with the moment, and that's a big question because

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<v Speaker 4>the time horizon on that can vary massively. Obviously, investors

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<v Speaker 4>want to see that come through quicker, but it takes

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<v Speaker 4>time for that builder to happen, for that adoption to

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<v Speaker 4>really take place and see that benefit build through. So

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<v Speaker 4>it's grappling with that horizon for that investment to really

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<v Speaker 4>pay off. And the second question that really comes up

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<v Speaker 4>is is who's going to win from all this? Which

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<v Speaker 4>of the hyperscalers may be the one that comes out

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<v Speaker 4>on top. Is it going to be the adopters of

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<v Speaker 4>this technology in terms of improving productivity, enhancing margins, or

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<v Speaker 4>how does it play through for the labor and how

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<v Speaker 4>does it play through for workers as well, So a

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<v Speaker 4>lot of questions there that come up consistently. I think

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<v Speaker 4>our message is that this is an enduring theme when

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<v Speaker 4>we think about AI and this capex. It's continually being

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<v Speaker 4>revised higher and so far. And we look at the

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<v Speaker 4>earnings for this season, they're very strong, they're good, so

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<v Speaker 4>we don't see any need to shy away. But we

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<v Speaker 4>are becoming more discerning in terms of how we think

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<v Speaker 4>about the market, and so as investors, you can clearly

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<v Speaker 4>see that in this quarter's earnings in terms of who's

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<v Speaker 4>being rewarded and who hasn't. But you know, when we

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<v Speaker 4>look at what's happening in North Asia. The supply chain

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<v Speaker 4>is still very strong. It's very hard to see that

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<v Speaker 4>being competed away, and so we still think about investing

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<v Speaker 4>across the whole AI landscape in terms of the hyperscalers,

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<v Speaker 4>the supply chain, the apps, everything that really does benefit

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<v Speaker 4>from what is going to be a very long time

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<v Speaker 4>frame on this theme.

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<v Speaker 1>You do expect that the volatility is going to become

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<v Speaker 1>more of a common theme, that the dispersion becomes more

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<v Speaker 1>significant as well, right within the names that we've seen,

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<v Speaker 1>you know, for a very long time going in one direction.

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<v Speaker 4>Yeah, we've seen that dispersion come through on the mag

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<v Speaker 4>seven as you've seen the performance in the first half

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<v Speaker 4>of this year, and that money has been rotated around

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<v Speaker 4>from hyperscalers to semiconductors to memory names, and so it's

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<v Speaker 4>coming back around to some of the hyperscalers at the moment.

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<v Speaker 4>But I think that's just indicative of the market trying

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<v Speaker 4>to figure out who's going to be the biggest beneficiary

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<v Speaker 4>of it. It has been about following that capex and

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<v Speaker 4>going to the beneficiaries rather than spenders of that so far.

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<v Speaker 4>But I think it's also saying to come back in

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<v Speaker 4>terms of that valuation question. Valuations aren't challenging across the board.

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<v Speaker 4>They're certainly not cheap, but they're not challenging. But we

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<v Speaker 4>have seen that gap around the top ten stocks in

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<v Speaker 4>the US relative to the rest of the market start

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<v Speaker 4>to narrow and those where the earnings are again being

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<v Speaker 4>quite strong. So we want to follow that earnings growth

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<v Speaker 4>in terms of positioning.

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<v Speaker 3>It's when you're in talk about that great big ball

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<v Speaker 3>of money. I think that's an image that.

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<v Speaker 1>We'd previously probably associated with something like the domestic Chinese market,

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<v Speaker 1>but the circular funding aspect has been one that's booked

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<v Speaker 1>investors as well. Right, what do you see is being

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<v Speaker 1>the impact in debt financing and opportunities there.

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<v Speaker 4>Yeah, that's come up as a pretty consistent question. I

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<v Speaker 4>think it comes back to some of the correlation concerns

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<v Speaker 4>around AI just permeating all these different asset classes and

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<v Speaker 4>how you put that.

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<v Speaker 3>Together in a portfolio.

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<v Speaker 4>But certainly high level of issuance around investment grade for

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<v Speaker 4>a lot of the IA on hyperscalar names this year.

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<v Speaker 4>I think the pace at which it came through, you know,

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<v Speaker 4>caused a little bit of indigestion for the markets in

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<v Speaker 4>terms of the over subscription rates for some of that

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<v Speaker 4>issuance tailing off, and we've seen spreads widen on some

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<v Speaker 4>of those names, especially at the longer duration end of

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<v Speaker 4>the issuance. And so I think that's again in line

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<v Speaker 4>with thinking about what's the timescale for seeing this return

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<v Speaker 4>on investment, particularly those cash flows start to go negative

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<v Speaker 4>for a lot of these companies, But ultimately these are

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<v Speaker 4>good quality companies.

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<v Speaker 3>Leverage is packed up a little bit.

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<v Speaker 4>But certainly not concerningometrics such as debt to e bit da.

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<v Speaker 4>There again sort of in line with what we would

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<v Speaker 4>think about. So it's an opportunity to pick up a

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<v Speaker 4>little bit more income if we see that issuance becoming

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<v Speaker 4>a little bit more structured and steady rather than surprising.

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<v Speaker 4>I think the market can digest that because been a

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<v Speaker 4>lot of flows into investment grade credit. Its still a

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<v Speaker 4>lot of demand there, and I think it's a way

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<v Speaker 4>to sort of play through a quality and a portfolio

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<v Speaker 4>when we don't really have any concerns around the macroeconomic

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<v Speaker 4>environment at the moment.

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<v Speaker 1>China played a big role in terms of bringing this

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<v Speaker 1>AI trade down to earth a bit.

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<v Speaker 3>Does that mean you would be a little more opportunity.

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<v Speaker 1>Opportunistic when it comes to the names in China, for example,

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<v Speaker 1>given the cost and efficiency savings that we've been talking about.

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<v Speaker 4>Yeah, the competitive angle and the token cost that's coming

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<v Speaker 4>through has been obviously a focus in terms of thinking

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<v Speaker 4>about adoption rates and that revenue generation. I think the

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<v Speaker 4>advancements that are happening are just amazing. When you say

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<v Speaker 4>the number of models that are coming out and how

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<v Speaker 4>sophisticated they are. They're still a little bit behind in

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<v Speaker 4>terms of what we're seeing in the US models, but

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<v Speaker 4>they certainly are catching up, and they're doing so at

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<v Speaker 4>a relatively lower cost for these open weight model in

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<v Speaker 4>terms of tokens, but they do use a lot more

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<v Speaker 4>tokens overall because of that. If I was looking at

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<v Speaker 4>the Chinese markets today and thinking about how to invest it,

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<v Speaker 4>I would be investing in line with those policy dynamics

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<v Speaker 4>that the Chinese government is pursuing, and that is around

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<v Speaker 4>you know, structural build out and thinking about supply chain

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<v Speaker 4>for the AI theme.

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<v Speaker 3>Investing in these big labs.

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<v Speaker 4>That come out there in these open weight models, and

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<v Speaker 4>more in line how that benefits broader into the economy.

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<v Speaker 4>So some of the Internet names are starting to benefit

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<v Speaker 4>and then also in terms of the greener side of

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<v Speaker 4>the economy, there's still focusing a lot on that sustainable

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<v Speaker 4>investment electricity to fund all this. So I think there's

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<v Speaker 4>a few dynamics when it comes to the Chinese market.

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<v Speaker 4>The real issue there is again around the housing the

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<v Speaker 4>domestic consumer and how that's playing through, and that's again

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<v Speaker 4>one of the struggles for both the market and the economy.

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<v Speaker 1>You still want the inflation protection and in any sort

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<v Speaker 1>of ideal portfolio, because it feels like investors, you know,

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<v Speaker 1>so infatuated with the AI trade, have been mostly quite

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<v Speaker 1>happy to ignore the risk of high energy prices.

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<v Speaker 4>Yeah, it's been remarkable how quickly that oil prices come

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<v Speaker 4>down on the scope for what could be quite a

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<v Speaker 4>narrow deal to reopen the strait of hor moves. I

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<v Speaker 4>think there's still a lot of I guess, operational risk

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<v Speaker 4>we would say, in terms of shipping companies who want

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<v Speaker 4>to go through that straight, any other costs that may

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<v Speaker 4>be associated with having to go through it, in terms

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<v Speaker 4>of what may be charged to pass through there, and

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<v Speaker 4>also the insurance costs which can move higher as well.

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<v Speaker 4>So all that was to us would suggest there should

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<v Speaker 4>be a little bit more premium of risk and that

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<v Speaker 4>oil price, and so we could see it go back

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<v Speaker 4>up from today's level. But if it's it's around eighty

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<v Speaker 4>five ninety dollars a barrel, that's probably not too challenging

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<v Speaker 4>for their kminmic environment. It's more when we look at

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<v Speaker 4>crackspreads and refinery costs, they're starting to move higher. When

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<v Speaker 4>we start to think about gas prices or diesel prices,

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<v Speaker 4>that's the bit that impacts the economy, and that's where

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<v Speaker 4>we could see some inflation pressure come through. When we

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<v Speaker 4>look at the inflation numbers around the world, it's been

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<v Speaker 4>sort of a trend of disinflation. That's how much that

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<v Speaker 4>gets derailed via this latest skirmish that's come through. We

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<v Speaker 4>see those numbers start to come up. And with the

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<v Speaker 4>central banks, I think they need to actually start to

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<v Speaker 4>respond to these inflation shocks from the supply side, which

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<v Speaker 4>they would typically normally look through.

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<v Speaker 1>I've got President Trump working on his tariffs again, bringing

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<v Speaker 1>that to the four again. It's interesting you have the

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<v Speaker 1>ASEX at a record high. It's the heavy lifting coming

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<v Speaker 1>from the old economy type stocks like the big miners.

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<v Speaker 3>Is that a reasonable haven to me?

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<v Speaker 4>I think it's good from thinking about some of the

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<v Speaker 4>structural stories and demand for things like copper that could

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<v Speaker 4>play through on the electrication side, that these are again

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<v Speaker 4>sort of big stable companies that we see through. If

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<v Speaker 4>you do get upside to growth from China, for example,

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<v Speaker 4>that would be beneficial for.

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<v Speaker 3>That part of the market.

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<v Speaker 4>But I think it's more reflective of some of the

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<v Speaker 4>more domestic concerns that are heading some of the domestic

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<v Speaker 4>players in the Australian market, particularly as you look into

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<v Speaker 4>the earning season. Here to be a big focus on

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<v Speaker 4>domestic cyclicals, the housing market obviously linking into back into

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<v Speaker 4>the banks and how they perform. Whereas when we look

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<v Speaker 4>at the miners and what they're saying, you know, what

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<v Speaker 4>is it saying that they're going to be driving a

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<v Speaker 4>lot more of the earnings growth for this season at least,

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<v Speaker 4>and so they's going to be quite a spread I

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<v Speaker 4>think in the market for the earning season this year,

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<v Speaker 4>and probably just like we saw back in February, a

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<v Speaker 4>lot of volatility in terms of that sort of have

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<v Speaker 4>and have nots that we saw come through there.

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<v Speaker 2>Bloomberg's Heidi Shroud Watts speaking to Kerry Craig Global Market

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<v Speaker 2>strategists at JP Morgan Asset Management, and we're bringing their

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<v Speaker 2>conversation to you here on the Daybreak Aisia Podcast. Welcome

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<v Speaker 2>back to the Daybreak Asia Podcast. I'm Dan Schwartzman. Doug

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<v Speaker 2>Chrisner has the week off. As I mentioned earlier, Asia

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<v Speaker 2>shares slipped as the AI rally paused from more on

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<v Speaker 2>Chinese markets. Bloomberg's David and Glass and April Hank spoke

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<v Speaker 2>to Ava Lee, head of Greater China Equities at UBS

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<v Speaker 2>Global Wealth Management.

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<v Speaker 3>What is the investment case you're making.

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<v Speaker 5>Are we in the early innings of that rotation back

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<v Speaker 5>into Chinese internet platform names.

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<v Speaker 6>I think that already has you know, happened. I'm not

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<v Speaker 6>saying that already done, but is just happening. We noted that,

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<v Speaker 6>you know, the foundation models.

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<v Speaker 3>I mean we are now have.

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<v Speaker 6>I think three different companies rowing out their latest version,

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<v Speaker 6>sort of proving that, you know, China AI, we're not

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<v Speaker 6>too far behind, you know, the global piers.

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<v Speaker 3>First thing.

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<v Speaker 6>Second thing is, of course the overall e commerce space.

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<v Speaker 6>People have been feared about the subsidies they've given to

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<v Speaker 6>the food delivery companies come in and say hey, we

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<v Speaker 6>are doing you know, sort of reducing the subsidies, so

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<v Speaker 6>the worst in terms of earnings momentum or the subsidies

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<v Speaker 6>the most that is already behind us. So that's the

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<v Speaker 6>two things that you know, sort of lifting the sentiment

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<v Speaker 6>of China.

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<v Speaker 7>Tag okay, China takes a big bucket with many different

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<v Speaker 7>different parts. Right now, I think Internet you've raised that

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<v Speaker 7>from fifty second semis I think are still number one

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<v Speaker 7>for you, correct, But do you have differentiade how you're

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<v Speaker 7>looking at Chinese How what's the best way to play

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<v Speaker 7>Chinese tack and Chinese AI at this point?

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<v Speaker 6>Given that information, let me bring you from what global

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<v Speaker 6>sort of looking at AI Right at the moment, everyone

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<v Speaker 6>focusing on monetization, and I think that will also be

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<v Speaker 6>the case for China. So whoever be able to deliver

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<v Speaker 6>like crowd growth better than people expect margins better, These

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<v Speaker 6>is the companies that people will focus on. And on

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<v Speaker 6>top of that, some of them even have their own

0:10:11.880 --> 0:10:15.040
<v Speaker 6>chips AI chips that they already developed. They able to

0:10:15.120 --> 0:10:18.560
<v Speaker 6>sell it to other companies exactly what US has been doing,

0:10:18.600 --> 0:10:21.680
<v Speaker 6>and that company would sort of be more supported in

0:10:21.760 --> 0:10:22.679
<v Speaker 6>terms of evaluation.

0:10:23.240 --> 0:10:24.840
<v Speaker 3>So now we're talking about show.

0:10:24.679 --> 0:10:28.600
<v Speaker 6>Me the money, like you spent a lot already. China

0:10:28.679 --> 0:10:31.280
<v Speaker 6>might not be the case, but they do spend as well. Right,

0:10:31.640 --> 0:10:35.040
<v Speaker 6>So now who are about able to capture you know,

0:10:35.120 --> 0:10:36.600
<v Speaker 6>the most benefit out of.

0:10:36.559 --> 0:10:39.840
<v Speaker 3>These sort of spending. I think that's the how you.

0:10:39.440 --> 0:10:42.000
<v Speaker 6>Sort of pick the winners versus the average.

0:10:42.120 --> 0:10:44.640
<v Speaker 5>So how much catch up you thing is possible on

0:10:44.640 --> 0:10:47.440
<v Speaker 5>the hung Stan tape because you look at EPs and

0:10:47.480 --> 0:10:50.280
<v Speaker 5>other metrics, you know, things still look quite subdued.

0:10:51.760 --> 0:10:53.800
<v Speaker 3>Well, we have to look at both sides.

0:10:53.920 --> 0:10:58.760
<v Speaker 6>First, the margins of the cloud in China it's a

0:10:58.800 --> 0:11:01.160
<v Speaker 6>lot lower than that of you, so we cannot say

0:11:01.160 --> 0:11:05.080
<v Speaker 6>that Chinese valuations will be you know, matching that because

0:11:05.080 --> 0:11:10.480
<v Speaker 6>we're talking about US thirty thirty over thirty percent China

0:11:10.640 --> 0:11:14.400
<v Speaker 6>like teens margins, it's already a breakthrough compared to nine

0:11:14.440 --> 0:11:15.520
<v Speaker 6>percent in the past.

0:11:15.760 --> 0:11:17.280
<v Speaker 3>But having said that, when.

0:11:17.280 --> 0:11:19.880
<v Speaker 6>You look at its own trajectory, I think at the

0:11:19.920 --> 0:11:23.640
<v Speaker 6>moment we're talking about just slightly about average, so we're

0:11:23.679 --> 0:11:27.160
<v Speaker 6>not yet at the level that very worrying. We're talking

0:11:27.200 --> 0:11:32.160
<v Speaker 6>about closed to like high teens, high teens versus the

0:11:32.280 --> 0:11:35.680
<v Speaker 6>earnings that they're going to deliver. We're talking about you know,

0:11:35.760 --> 0:11:38.959
<v Speaker 6>close to twenty fifteen to twenty percent on a three

0:11:39.040 --> 0:11:42.480
<v Speaker 6>year cagabasis. I think it's still very reasonable, so I

0:11:42.520 --> 0:11:46.360
<v Speaker 6>don't worry too much about valuation, but be you know,

0:11:46.440 --> 0:11:47.760
<v Speaker 6>realistic about how.

0:11:47.640 --> 0:11:50.480
<v Speaker 3>Much they can narrow the gap against the USBN.

0:11:50.640 --> 0:11:54.240
<v Speaker 5>Helpers also understand some of the you know, broader dynamic

0:11:54.400 --> 0:11:56.679
<v Speaker 5>place because we are seeing today the costs be right

0:11:56.840 --> 0:12:00.360
<v Speaker 5>getting hard hit. And this is you know, we where

0:12:00.480 --> 0:12:03.439
<v Speaker 5>maybe we saw a bit of optimism surrounding the memory

0:12:03.520 --> 0:12:08.040
<v Speaker 5>the momentum coming back. How are investors then allocating towards

0:12:08.160 --> 0:12:11.520
<v Speaker 5>China with that in mind? And then within China as well,

0:12:11.679 --> 0:12:13.480
<v Speaker 5>what are you seeing in terms of you know, the

0:12:13.480 --> 0:12:18.200
<v Speaker 5>crackdown you're seeing on some of the tax issues. Does

0:12:18.200 --> 0:12:22.040
<v Speaker 5>that also affect the hunting financial related stocks and then

0:12:22.160 --> 0:12:24.240
<v Speaker 5>drive things further into hunsting tech.

0:12:24.960 --> 0:12:27.920
<v Speaker 3>So within the entire AI space.

0:12:27.880 --> 0:12:32.760
<v Speaker 6>Were regionally people very much into these certain memory trips

0:12:32.800 --> 0:12:36.800
<v Speaker 6>in particular, But if you look at the past memory trips,

0:12:36.840 --> 0:12:41.960
<v Speaker 6>sort of the bull market never lasts more than twelve months.

0:12:42.360 --> 0:12:46.240
<v Speaker 6>This round is very special because you need a lot

0:12:46.400 --> 0:12:48.720
<v Speaker 6>and then the market that doesn't have enough, so you

0:12:48.840 --> 0:12:51.719
<v Speaker 6>have a substantial and growing demand and then supply you

0:12:51.840 --> 0:12:54.960
<v Speaker 6>take time to catch up. But it will catch up eventually, right,

0:12:55.360 --> 0:12:57.960
<v Speaker 6>and it's not just from career. Maybe China is doing

0:12:58.000 --> 0:13:01.319
<v Speaker 6>some memory trips as well. So the situation is moving,

0:13:01.360 --> 0:13:04.439
<v Speaker 6>so people need to monitor that and do not expect.

0:13:04.679 --> 0:13:07.599
<v Speaker 6>Do not look at E because the E can disappear

0:13:08.800 --> 0:13:11.600
<v Speaker 6>or lowered in you know, two to three years time.

0:13:11.640 --> 0:13:14.800
<v Speaker 6>I think that's very important when you look at PEL right,

0:13:14.880 --> 0:13:18.160
<v Speaker 6>sustainability of learnings. Apart from that, when you look at

0:13:18.200 --> 0:13:22.160
<v Speaker 6>the entire monetization side, I talk about my foundation model.

0:13:22.679 --> 0:13:23.960
<v Speaker 3>Now almost every.

0:13:23.760 --> 0:13:26.880
<v Speaker 6>Week we have one or two new models coming through.

0:13:27.200 --> 0:13:29.880
<v Speaker 6>So the competition is crazy. So when you sort of

0:13:29.920 --> 0:13:34.360
<v Speaker 6>analyze the situation, we need to look at the competition's level,

0:13:34.520 --> 0:13:38.000
<v Speaker 6>the how whether one will be able to dominate the

0:13:38.080 --> 0:13:41.320
<v Speaker 6>market share, and then you can pick your stuff. It's like, oh,

0:13:41.400 --> 0:13:44.280
<v Speaker 6>I know that they have the ecosystem. The ecosystem will

0:13:44.320 --> 0:13:47.440
<v Speaker 6>not disappear. The people already rely on the you know,

0:13:47.480 --> 0:13:51.439
<v Speaker 6>the chair, the payment they already develop happened, it's very

0:13:51.440 --> 0:13:53.599
<v Speaker 6>tough for them to move. So I think this is

0:13:53.640 --> 0:13:59.199
<v Speaker 6>also very important to understand. Now we're talking about AI monetization,

0:13:59.679 --> 0:14:00.640
<v Speaker 6>who able.

0:14:00.440 --> 0:14:03.319
<v Speaker 3>To capture this become a recurring earnings.

0:14:03.440 --> 0:14:07.240
<v Speaker 7>If investors can't be bothered with all that. If that's

0:14:07.320 --> 0:14:10.200
<v Speaker 7>just a headache picking the winners, are there other sectors

0:14:10.200 --> 0:14:13.880
<v Speaker 7>that seem to be cleaner cut income? There's been returned

0:14:13.880 --> 0:14:17.320
<v Speaker 7>to cyclicals and value recently fixed income. I don't know,

0:14:17.360 --> 0:14:19.560
<v Speaker 7>like what else are what are we missing as we

0:14:19.640 --> 0:14:20.720
<v Speaker 7>obsess over this.

0:14:21.440 --> 0:14:25.120
<v Speaker 6>Recently we have been we have talked about this yield,

0:14:26.080 --> 0:14:29.560
<v Speaker 6>you know, seeking for yield. Banks already have done very well.

0:14:29.680 --> 0:14:31.840
<v Speaker 6>We start to see a bit of rotation. So you

0:14:31.920 --> 0:14:37.600
<v Speaker 6>showed earlier a bit of rotation. Domestic insurance companies, you know,

0:14:37.680 --> 0:14:42.840
<v Speaker 6>should be also gaining this. People seeking to invest and

0:14:42.960 --> 0:14:45.520
<v Speaker 6>not necessarily to equity market all the way, right, they

0:14:45.600 --> 0:14:48.960
<v Speaker 6>might seek for some investment product over by insurance companies.

0:14:49.240 --> 0:14:50.680
<v Speaker 3>Domestic insurance company.

0:14:50.600 --> 0:14:53.600
<v Speaker 6>So that is going to do well apart from that

0:14:53.800 --> 0:14:57.000
<v Speaker 6>something so you actually started to do buy back and

0:14:57.280 --> 0:14:58.440
<v Speaker 6>look at the share price.

0:14:58.480 --> 0:15:01.080
<v Speaker 3>It really reflect that corporate.

0:15:00.760 --> 0:15:03.400
<v Speaker 6>Governance, not just in China, I think also in Japan,

0:15:03.800 --> 0:15:04.760
<v Speaker 6>a few Thinkapore.

0:15:05.120 --> 0:15:07.040
<v Speaker 3>You know, we have some reasons.

0:15:06.520 --> 0:15:10.080
<v Speaker 6>That these are even on a higher I mean, US

0:15:10.120 --> 0:15:12.960
<v Speaker 6>tenure yields at four point six is not low. But

0:15:13.440 --> 0:15:16.600
<v Speaker 6>people still you know, sort of think about what sort

0:15:16.640 --> 0:15:20.800
<v Speaker 6>of a positive carry I can get from the diffident stocks.

0:15:20.840 --> 0:15:22.640
<v Speaker 3>I think that's another element.

0:15:23.080 --> 0:15:28.840
<v Speaker 6>Lastly, going overseas, we have been seeing certain sectors really

0:15:28.920 --> 0:15:31.240
<v Speaker 6>already done a lot of work in the past in

0:15:31.320 --> 0:15:34.840
<v Speaker 6>terms of breaking into the international channel, so they are

0:15:35.040 --> 0:15:40.520
<v Speaker 6>able to gain margins because China, the involution the really

0:15:40.600 --> 0:15:45.320
<v Speaker 6>creating very efficient margins within the space, so when they

0:15:45.360 --> 0:15:49.320
<v Speaker 6>expand the goods very competitive in the international market.

0:15:49.760 --> 0:15:52.160
<v Speaker 2>That was Avia Lee, head of Greater China Equities at

0:15:52.240 --> 0:15:55.480
<v Speaker 2>UBS Global Wealth Management, speaking of Bloomberg's David and Glass

0:15:55.480 --> 0:15:58.040
<v Speaker 2>and April hag And we're bringing their conversation to you

0:15:58.120 --> 0:15:59.920
<v Speaker 2>here on the daybreakas podcast.

0:16:02.360 --> 0:16:05.720
<v Speaker 8>Thanks for listening to today's episode of the Bloomberg Daybreak

0:16:05.880 --> 0:16:09.280
<v Speaker 8>Asia Edition podcast. Each weekday, we look at the story

0:16:09.320 --> 0:16:13.680
<v Speaker 8>shaping markets, finance, and geopolitics in the Asia Pacific. You

0:16:13.720 --> 0:16:17.840
<v Speaker 8>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:16:17.960 --> 0:16:20.960
<v Speaker 8>or anywhere else you listen. Join us again tomorrow for

0:16:21.080 --> 0:16:24.600
<v Speaker 8>insight on the market moves from Hong Kong to Singapore

0:16:25.000 --> 0:16:28.760
<v Speaker 8>and Australia. I'm Doug Prisoner and this is Bloomberg