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Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

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Speaker 2: Welcome to the Daybreak Asia podcast. I'm Doug Krisner. Crude

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Speaker 2: oil prices were higher in the New York session as

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Speaker 2: Iran continued to attack energy infrastructure around the Middle East,

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Speaker 2: and at the same time President Trump abandoned efforts to

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Speaker 2: recruit partners to reopen the Strait of Horn moves. Now

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Speaker 2: in the Asian session, oil prices are drifting a bit lower.

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Speaker 2: At the same time, in Vidia said in New York

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Speaker 2: trading it's firing up manufacturing of the H two hundred

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Speaker 2: AI accelerators for customers in China. CEO Jensen Wong said

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Speaker 2: the outlook is very different than it was just a

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Speaker 2: couple of weeks ago. For a closer look at today's

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Speaker 2: trading activity, let's bring in Bloomberg's Leonting II. She is

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Speaker 2: Managing editor for Asia Equities. Leonting joins from our studios

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Speaker 2: in Singapore. Thank you for being here. There is so

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Speaker 2: much to talk about. One of the things that struck

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Speaker 2: me in the US session was the positivity in stocks

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Speaker 2: tied to the server market. I'm looking at a memory

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Speaker 2: chip maker, Micron, that's up four and a half percent

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Speaker 2: on the day, and then if you look at the

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Speaker 2: storage makers like Seagate in Western Digital, Seagate was up

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Speaker 2: more than five and a half percent. Western Digital was

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Speaker 2: up more than nine and a half percent. And I'm

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Speaker 2: wondering whether this is kind of filtering into some of

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Speaker 2: the price action that we're seeing in South Korea at

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Speaker 2: the moment.

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Speaker 3: Yeah, I think South Korea is a big beneficiary from

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Speaker 3: Jensen Jun's bullish comment on AI demand. In the last

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Speaker 3: two days. Some Song in particular also unveiled its HBM chips,

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Speaker 3: and right now there's AGM going on within Somesung. I

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Speaker 3: think it's answering a lot of shareholder quiri's and the

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Speaker 3: latest headlines talking about how some sound's feeling continue to

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Speaker 3: feel I should say the memory chip tightness, and that

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Speaker 3: again is boosting belief. Shares are up more than six

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Speaker 3: percent this morning, and think yesterday Samson was an outstanding

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Speaker 3: winner as well, so that is boosting the cosby to

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Speaker 3: almost four percent this morning. And of course it's not

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Speaker 3: just Korean names. If you look across the Asia tech

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Speaker 3: supply chain, all the hardware names are jumping, including the

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Speaker 3: ones in Japan, Chip Tester Testing company advant Test, and

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Speaker 3: of course TSMC in Taiwan's doing quite well as well,

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Speaker 3: So overall it feels like people are shifting their attention

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Speaker 3: back to tech and AI bullishness versus the whole attention

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Speaker 3: on the Iran world in the last two and a

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Speaker 3: half weeks.

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Speaker 2: So I know we're going to get the results from

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Speaker 2: ten Cent in a few hours from now. Is the

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Speaker 2: focus really going to be on ai where ten Cent

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Speaker 2: is concerned.

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Speaker 3: Yes, So for ten Cent today, I should say, and

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Speaker 3: Baba tomorrow. The dynamics is slightly different in China. The

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Speaker 3: latest craze is all about open Claw, which is agentic

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Speaker 3: AI tool, so it is really about what Tencent has

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Speaker 3: to say about the deployment of this tool. Of course,

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Speaker 3: leading up to this, ten Cent earnings, tens and shares

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Speaker 3: have been doing quite well this month to date. I

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Speaker 3: believe it's up five percent or so, really outperforming Ali Baba.

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Speaker 3: I think performance in about two years or so. The

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Speaker 3: idea is ten Cent, which has been lagging behind Ali

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Speaker 3: Baba in the AI race in China, is now going

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Speaker 3: to be a serious challenger for Ali Baba, just because

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Speaker 3: Tanzan can leverage its everything app we Chat, which has

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Speaker 3: one point four billion users. So if Tanzan rolls out

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Speaker 3: an agentic ai on top of its we chat app

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Speaker 3: to help its users automated daily tasks. Tanzan can all

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Speaker 3: of a sudden become a dominant player in this agentic

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Speaker 3: ai space in China. So that is, you know, very

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Speaker 3: much the focus basically about competition between the two big

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Speaker 3: giant tech giants in China, Tensen and Ali Baba, and

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Speaker 3: about how how much they're going to spend on Ai

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Speaker 3: and how they're going to deploy the agentic ai.

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Speaker 2: So you mentioned the commentary from Nvidia CEO Jensen Wong.

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Speaker 2: Talk to me a little bit about what in Vidia

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Speaker 2: is doing with some of the EV makers in China

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Speaker 2: like Gili and BYD.

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Speaker 3: Yeah, it's it's interesting that Nvidia is talking a little

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Speaker 3: bit more on this partnership with a bunch of EV

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Speaker 3: automated vehicle sort of companies. Of course, we in China

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Speaker 3: there is a lot of e V e V names,

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Speaker 3: and Jensen talked about partnership with Boi D, with Gili

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Speaker 3: and by the way, GED is reporting earnings today, So

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Speaker 3: all these names have really jumped as well, and it's

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Speaker 3: not just in China. In Korea, Hyundai also jumped on

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Speaker 3: Nvidia's sort of a vision to partner with not just

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Speaker 3: these AI sort of related chip names, but also in

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Speaker 3: the auto sector as well, and Barry in mind, and

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Speaker 3: all these biggest automakers are actually all based in Asia.

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Speaker 3: So that definitely played a positive role yesterday in terms

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Speaker 3: of market reactions.

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Speaker 2: To what extent is geopolitics entering the story here. Obviously

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Speaker 2: there is the oil story given war with Iran, but

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Speaker 2: we also have President Trump saying that the summit that

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Speaker 2: he had intended to do at the end of the

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Speaker 2: month with Chinese President Chijinping will now take place in

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Speaker 2: about five or six weeks from now. Is that a

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Speaker 2: distraction or is it having any significant impact.

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Speaker 3: I wouldn't say there is any significant impact out of

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Speaker 3: the delay of the summit. There's probably a very marginally

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Speaker 3: negative impact for the onshore market right now we're seeing.

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Speaker 3: Of course, we've been writing about how Chinese markets are

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Speaker 3: a relative haven in this iron world just because of

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Speaker 3: their diversified energy sources. But it seems the momentum is

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Speaker 3: losing a bit of steam in the onshore space, you know,

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Speaker 3: after the NPC, and also we don't really have a

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Speaker 3: lot of fresh catalyst. Of course, this potential summit could

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Speaker 3: provide some kind of positive catalyst for traders to trade on,

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Speaker 3: So I would say it's marginally negative. But mainly people

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Speaker 3: are still very much trading around the Iran war, the

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Speaker 3: power names, they were the biggest gainers. And also in

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Speaker 3: the last two days people are looking to pick up

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Speaker 3: some kind of very cheap consumer names. So I would

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Speaker 3: say very much driven by the Iran headlines and also

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Speaker 3: the domestic eco data headlines.

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Speaker 2: Yeah, I was going to ask about that some inflation

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Speaker 2: data that suggests maybe that China is moving out of

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Speaker 2: this kind of disinflationary or deflationary trap. And the retail

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Speaker 2: sales number I think was better than expected, right.

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Speaker 3: Yes, it was up two point eight percent year on

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Speaker 3: year for the first two months of the year, I believe,

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Speaker 3: and which was better than the previous reading. Yeah, I

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Speaker 3: think it was. It definitely played a role in how

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Speaker 3: people are turning slightly more bullish on consumer stocks, but

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Speaker 3: I would say it's more to do with their beaten

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Speaker 3: down valuation because the data was quite backward looking. And

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Speaker 3: in terms of reflationary trade, yes, I see. Some economists

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Speaker 3: and some strategists started to talk about that about how

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Speaker 3: you know this energy price search could be definitely a

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Speaker 3: boost for consumer prices, but this is very much sort

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Speaker 3: of supply driven dynamic. Right for the whole economy to

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Speaker 3: really benefit from this reflationary environment, potentially refrationary environment, it

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Speaker 3: would really need to be demand driven, but we are

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Speaker 3: not really seeing the kind of rising demand for all

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Speaker 3: sorts of things. Overall. I think still very much people

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Speaker 3: really care about their savings. You're concerned about the jobs prospect,

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Speaker 3: so you know, I would say it's a battle that's

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Speaker 3: going to be long lasting one for the Chinese government.

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Speaker 2: But can we take away from these data that maybe

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Speaker 2: the consumer in China is beginning to become a little

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Speaker 2: bit more optimistic or at least positive.

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Speaker 3: Yeah, I think one data point, I mean, I would

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Speaker 3: agree with you on that, but it's just one data point, right.

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Speaker 3: To really show the consumers are turning more positive, we

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Speaker 3: need to see continued data points pointing to that. I

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Speaker 3: would say, yes, the Spring festival holiday was quite positive

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Speaker 3: in terms of their spending, but fundamentally we don't really

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Speaker 3: see much changing. I think we're still seeing a lot

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Speaker 3: of crackdown on you know, fat banker pay. Yesterday there

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Speaker 3: was a scoop about banker bonuses getting cut by thirty

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Speaker 3: percent or so, and the jobs market is still quite bad.

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Speaker 3: And think the unemployment rate for the young generation is

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Speaker 3: still very concerning. I think a lot of people are

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Speaker 3: still choosing to be you know, so called lying flat

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Speaker 3: of generation. So yeah, I mean I believe there is

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Speaker 3: sort of pockets of excitement because of this AI development.

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Speaker 3: There is more hiring going on. Of course, with all

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Speaker 3: the listings going on, some entrepreneurs or founders getting wealthy,

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Speaker 3: but still that's still very small part of the economy overall.

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Speaker 2: I have to ask about the export data for Japan

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Speaker 2: in the month of February. I think the growth rate

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Speaker 2: was about four point two percent, which was way above estimates.

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Speaker 2: That seems to be pretty stunning. Do we have a

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Speaker 2: sense of what's driving that activity.

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Speaker 3: Yeah, I think for Japan, you know, Japan has quite

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Speaker 3: a few sectors that are really a competitive I think

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Speaker 3: chip sector. I would say Japan has a lot of

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Speaker 3: machinery sectors and also ship making as well, So I

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Speaker 3: would say the industrial sectors are all benefiting right now,

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Speaker 3: and I think the dynamic maybe similar to Korea and China.

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Speaker 3: I think Korea's latest export numbers are also very good.

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Speaker 3: Really driven by chip exporting. And also even for China,

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Speaker 3: we're seeing you know, power transformers becoming one of the

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Speaker 3: hottest sectors being exported, and that has a lot to

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Speaker 3: do with the orther you know, AI development, the data

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Speaker 3: center built out. Of course, one thing interesting about Japan

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Speaker 3: is the kind of defense related export as well. And yeah,

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Speaker 3: and the one thing we want to really watch out

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Speaker 3: for is the summit between Trump and Takaichi, which is

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Speaker 3: coming up on Thursday, and we'll get market reaction, I believe,

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Speaker 3: on ondes on Monday, because Friday, Japan will be off.

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Speaker 2: So would you expect Takeiichi to announce some sort of

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Speaker 2: deal where Japan would be spending money to acquire defense

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Speaker 2: hardware or military hardware from the United States.

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Speaker 3: I think it's a bit hot to say. One thing

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Speaker 3: everybody's watching out for is whether Japan can be convinced

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Speaker 3: by Trump to help out to reopen the Strait of

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Speaker 3: hor Moos by sending ships to escort, by sending warships

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Speaker 3: to escort some kind of tankers. Japan has already openly

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Speaker 3: said that it's not going to do so because there's

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Speaker 3: there are a lot of things at stake, but just

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Speaker 3: because Takaichi is among the first leaders to meet Trump

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Speaker 3: after Trump caught for help. So that's still going to

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Speaker 3: be very much where people's attention will be.

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Speaker 2: Leon Ting will leave it there. Thank you so very much.

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Speaker 2: Bloomberg's Leon Ting too, Managing editor for Asia Equities, Joining

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Speaker 2: from Singapore here on the Daybreak Asia podcast. Welcome back

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Speaker 2: to the Daybreak Asia Podcast. I'm Doug Prisner. On Tuesday,

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Speaker 2: President Trump abandoned efforts to recruit partners to reopen the

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Speaker 2: straight Offoe Moves, and he criticized NATO and allies in

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Speaker 2: Asia who said they didn't want to get involved. That's

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Speaker 2: where we begin our conversation with Fred Flitz. Fred is

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Speaker 2: Vice chair of American Security at the American First Policy Institute.

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Speaker 2: He spoke with Bloomberg TV host Heidi Stroud, Watts and Cherry.

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Speaker 4: On how's the Wall going? Because you say that this

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Speaker 4: is entering the final chapter. Do we really know that

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Speaker 4: because so far the strategic goals, overarching as they may be,

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Speaker 4: have been still quite undetermined.

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Speaker 5: Well, the goals are to stop a run from getting

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Speaker 5: a nuclear weapon and destroying Aron's missile program, and those

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Speaker 5: goals have been achieved. A related goal is not regime change,

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Speaker 5: but weakening the regime so the Irani people can take

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Speaker 5: back their country. And I think the mark of a

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Speaker 5: good leader is to recognize that when you've achieved your goals,

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Speaker 5: it's time to declare victory and take the win. I

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Speaker 5: think President Trump will will do that in about two weeks.

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Speaker 4: President Trump has talked about regime change right. He's also

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Speaker 4: not ruled out putting boots on the ground. He's talked

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Speaker 4: about a set of potentially strategic goals that may not

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Speaker 4: be achieved without troops. You talk about giving the Uranian

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Speaker 4: people an opportunity to come in and seize that leadership.

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Speaker 4: Is there any evidence that we have to see that

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Speaker 4: the opposition, the ground swell, is strong enough and organized

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Speaker 4: enough to do that.

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Speaker 5: The President has been clear that his main objective is

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Speaker 5: stopping around for getting a nuclear weapon. I think the

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Speaker 5: nuclear president has been set back decades. The power projection

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Speaker 5: capabilities of this regime have been destroyed. The world is

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Speaker 5: much safer today because of Donald Trump and what Benjamin

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Speaker 5: NETTYA who did. I don't want US troops on the

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Speaker 5: ground and run. I don't think that's going to happen.

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Speaker 5: Only the main remaining task is to neutralize drones and

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Speaker 5: missiles that are being fired at the Strait of Hormus.

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Speaker 5: I wish our Asian and European aalygy with US on that,

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Speaker 5: but I believe the US Navy and the US Air

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Speaker 5: Force can take out these positions that are threatening the straight.

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Speaker 4: Do you believe there was an imminent nuclear threat? Because

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Speaker 4: the United Nations doesn't think so. Joe Kant, who just resigned,

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Speaker 4: doesn't think so either. He's accusation is that Israel misled

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Speaker 4: President Trump in the United States into starting this war.

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Speaker 5: What a shameful thing to say, to engage in anti

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Speaker 5: Semitism and israel hatred because you happen to have policy differences.

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Speaker 5: Let's be clear here, Mark or Rubio said, and I

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Speaker 5: believe this is exactly right, that Iran was assembling what

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Speaker 5: would be a missile shield that would have been impenetrable

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Speaker 5: by the end of twenty twenty six. It would have

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Speaker 5: used this shield to protect its nuclear weapons program, which

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Speaker 5: it resumed after the Twelve Day War. That made this

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Speaker 5: an imminent threat. Rubio spelled that out very clearly. Kent

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Speaker 5: knows this. Why he resigned, I don't know, but frankly,

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Speaker 5: his reasons made no sense.

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Speaker 6: So how close are we to ending this war?

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Speaker 2: Then?

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Speaker 5: I think we're looking at a couple of weeks, maybe

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Speaker 5: three weeks. President Trump has called it an excursion. He's

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Speaker 5: very particular that this not be a quagmire, that this

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Speaker 5: not be an un ending war. I think after most

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Speaker 5: troops and ships are sent in the region are withdrawn

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Speaker 5: that were sent for this conflict, there will be a

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Speaker 5: residual naval force in the Arabian Sea to keep an

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Speaker 5: eye on things, maybe to attack again if Iran escalates.

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Speaker 5: But this regime is broken, and there are signs just

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Speaker 5: in the last twelve hours of Iranians demonstrating, well, they're

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Speaker 5: actually celebrating and Iranian holiday in defiance of the security forces.

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Speaker 5: They're yelling death of the dictator. They're hoping that the

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Speaker 5: Sun Shaw will become the leader, the Shah Sun will

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Speaker 5: become the leader. I don't know that will happen, but

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Speaker 5: there is evidence right now that the Irani people are

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Speaker 5: going to challenge this regime.

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Speaker 6: Given how justified this war seems to be according to

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Speaker 6: your reviews, why do you think allies are not chiming

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Speaker 6: in here?

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Speaker 5: Well, I think it's a shame that we have and

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Speaker 5: first of all. I might add that we're very grateful

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Speaker 5: for the support of the Australian and Canadian prime ministers

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Speaker 5: for this effort. I wish that our allies in Native

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Speaker 5: were with us. I think we have a number of

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Speaker 5: liberal leaders who simply aren't standing by their principles. It

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Speaker 5: sounds like President Macrone is prepared to join the US

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Speaker 5: in this operation some way after we win. Well. I

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Speaker 5: guess that will be welcome. But it's a shame that

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Speaker 5: the French and the British and the Germans were not

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Speaker 5: with us at the beginning. Do you think that.

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Speaker 4: Would have been more willingness to participate from allies if

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Speaker 4: they were consulted on these operations to begin with.

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Speaker 5: I believe they were consulted on these operations. What I

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Speaker 5: think they're said about is that there wasn't a UN

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Speaker 5: Security Council resolution approving it. They're claiming that it was

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Speaker 5: not consistent with international law. There was no way to

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Speaker 5: get a Security Council resolution because of vitos by the

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Speaker 5: Russians and the Chinese. And I think that this is

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Speaker 5: an unfortunate but necessary action against a state that's been

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Speaker 5: at ward of the United States for forty seven years.

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Speaker 5: And has operated outside of international law. It's a state

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Speaker 5: sponsored terror, and President Trump decided to take it down.

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Speaker 6: I guess the issue right now is weighing the benefits

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Speaker 6: against the cons of this war, right especially when it

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Speaker 6: comes to bringing global order, and also when it comes

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Speaker 6: to other of President Trump's top priorities. I mean, this

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Speaker 6: war in itself, as President Trump says, has delayed the

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Speaker 6: China summit that he was planning with President Shi jan Ping,

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Speaker 6: Will it endanger his other priorities that might be more

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Speaker 6: important for the American public at this point?

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Speaker 5: I don't think so. That's why I believe the President's

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Speaker 5: going to wind this war down in a few weeks.

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Speaker 5: He's still determined to pursue a productive relationship with President

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Speaker 5: she And look, it was Trump who wanted to postpone

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Speaker 5: the summit, and frankly, it was a good move because

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Speaker 5: Trump really needs to remain in Washington until all the

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Speaker 5: details of this operation are done. Then he can put

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Speaker 5: his full attention on a successful Senate with the Chinese leader.

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Speaker 6: How happy are the American public right now, especially as

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Speaker 6: we hurt to the midterm elections.

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Speaker 5: You know, the conservative movement is surprisingly supportive of this.

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Speaker 5: You're not hearing that in the national media. I think

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Speaker 5: there's considerable opposition by Democrats and the strong opposition by Independence.

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Speaker 5: That's because the news media has been just so incredibly

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Speaker 5: overwhelmingly negative. I think the trum administration has could do

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Speaker 5: a better job selling what was accomplished. Explained that this

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Speaker 5: mission has concluded successfully, and we'll then move on to

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Speaker 5: the midterm election.

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Speaker 2: That was Fred Flit's, vice chair of American Security at

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Speaker 2: the America First Policy Institute, speaking with Bloomberg TV host

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Speaker 2: Heidi Stroud, Watts and Cherry On bringing you their conversation

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Speaker 2: here on the Daybreak Asia podcast. Thanks for listening to

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Speaker 2: today's episode of the Bloomberg Daybreak Asia Edition podcast. Each weekday,

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Speaker 2: we look at the story shaping markets, finance, and geopolitics

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Speaker 2: in the Asia Pacific. You can find us on Apple, Spotify,

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Speaker 2: the Bloomberg Podcast YouTube channel, or anywhere else you listen.

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Speaker 2: Join us again tomorrow for insight on the market moves

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Speaker 2: from Hong Kong to Singapore and Australia. I'm Doug Prisoner

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Speaker 2: and this is Bloomberg