WEBVTT - APAC Markets Open Higher as Geopolitical Risks Loom

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

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<v Speaker 1>Daybreak Asia Podcast. I'm Doug Krisner. So Wall Street took

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<v Speaker 1>a bit of a breather in the last session. Equities

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<v Speaker 1>drifted lower after a six day advance, and in the

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<v Speaker 1>bond market, longer term treasure yields were a bit higher

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<v Speaker 1>as US budget negotiations showed little sign of resolution. In

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<v Speaker 1>a moment, we'll be speaking with Brian Vendig. He is

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<v Speaker 1>the chief investment officer over at MJP Wealth Advisors. But

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<v Speaker 1>we start with the US China trade war and the

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<v Speaker 1>story on tariffs. Now in the US session, we heard

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<v Speaker 1>from the head of the Saint Louis fed Albertumusalom. He

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<v Speaker 1>said tariffs will likely weigh on growth and weaken the

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<v Speaker 1>labor market, even after the recent ninety day de escalation

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<v Speaker 1>between Washington and Beijing. Here is Musalam speaking earlier at

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<v Speaker 1>an event in Minneapolis.

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<v Speaker 2>Are higher have been more broadly applied and have prompted

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<v Speaker 2>stronger retaliation than I and many others had expected. Ongoing

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<v Speaker 2>negotiations with trading partners might dial back tariff significantly and durably,

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<v Speaker 2>as we have seen with the recent announcement of a

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<v Speaker 2>ninety day reduction in reciprocal tariffs with China.

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<v Speaker 1>That is the head of the Saint Louis fed Albertu

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<v Speaker 1>Musalom with a perspective on how tariffs are impacting the US.

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<v Speaker 1>So now let's take a look at how tariffs are

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<v Speaker 1>impacting China. I'm joined by Helen Ju, managing partner and

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<v Speaker 1>Chief investment Officer at NF Trinity. Helen is joining us

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<v Speaker 1>from our studios in Hong Kong. Good of you to

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<v Speaker 1>make time to chat with us before we get to

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<v Speaker 1>the Moody's downgrade on the US credit rating. Can we

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<v Speaker 1>start with the April activity data for China, the numbers

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<v Speaker 1>that we got on Monday. It seems somewhat surprising that

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<v Speaker 1>industrial output performed as well as it did. What do

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<v Speaker 1>you make of the activity data that we saw on

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<v Speaker 1>Monday for the mainland economy?

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<v Speaker 3>Look, I think there's going to be a lot of

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<v Speaker 3>noise in the activity data year today. So there's a

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<v Speaker 3>couple of factors to consider. One is that there was

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<v Speaker 3>clearly a lot of government support and stimulus in various

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<v Speaker 3>parts of the economy, harder for it to reach consumers

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<v Speaker 3>or to massively change consumer behavior and then your term.

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<v Speaker 3>But certainly in terms of manufacturing, infrastructure, investment, et cetera,

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<v Speaker 3>the government policies can have meaningful impacts short term. The

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<v Speaker 3>second thing I would mention is that because of the

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<v Speaker 3>trade war, there has been a lot of time shifting

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<v Speaker 3>of activity as well. So, for example, the exports were

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<v Speaker 3>very strong in the first quarter, probably because people wanted

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<v Speaker 3>to put in their orders and get the stuff shipped

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<v Speaker 3>prior to the trade war or prior to Liberation Day

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<v Speaker 3>coming in, and then later on I think it was

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<v Speaker 3>not necessarily clear whether you know, things were going to

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<v Speaker 3>be potentially extended as we did see in May. So

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<v Speaker 3>you know, I think there's a lot of like jerkiness

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<v Speaker 3>in terms of the activity because of these types of

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<v Speaker 3>one off events.

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<v Speaker 1>So the reading on retail sales was disappointing. Is it

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<v Speaker 1>still very much the case that anything related to consumer

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<v Speaker 1>sentiment begins and ends with the home market, the property market.

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<v Speaker 1>I saw the China's home prices down in the month

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<v Speaker 1>of April at a faster clip. Is that really the

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<v Speaker 1>eye of the storm still?

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<v Speaker 3>I would say that's one factor, but probably not the

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<v Speaker 3>only factor, but certainly it affects, you know, the wealth

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<v Speaker 3>effect in terms of high end discretionary spending, but retail

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<v Speaker 3>sales itself is not just all high end discretionary spending.

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<v Speaker 3>A lot of it could be specific sectors. You know,

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<v Speaker 3>for example, autos depending on what you know new models

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<v Speaker 3>were coming out that particular month, and you know in

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<v Speaker 3>the past, whether there were specific ev subsidy policies that

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<v Speaker 3>are less relevant today. There could also be impacts in

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<v Speaker 3>terms of other specifics, like you know, were their subsidies

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<v Speaker 3>relating to three C products coming from the government. You know,

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<v Speaker 3>those types of things I think do tend to have

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<v Speaker 3>an impact on the short term. But generally speaking, with

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<v Speaker 3>the backdrop of the trade war lurking in the month

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<v Speaker 3>of April, it's not a surprise that people would feel

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<v Speaker 3>less confident about spending, irrespective of what's happening in terms

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<v Speaker 3>of the property market.

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<v Speaker 1>So we're still in this period of a truce between

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<v Speaker 1>the US and China when it comes to the trade war.

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<v Speaker 1>What is going to be the ultimate outcome of this?

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<v Speaker 1>Do you think if you had to place a bet

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<v Speaker 1>on where we go on the other side of that

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<v Speaker 1>ninety day period, what does it look like.

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<v Speaker 3>I think it's highly unlikely that the tariffs that have

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<v Speaker 3>been bradscheted back are going to come back in, because

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<v Speaker 3>if you actually put those back in, then essentially there

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<v Speaker 3>won't be any trade between the US and China because

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<v Speaker 3>the tariffs will be so high. So I do think

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<v Speaker 3>that there is going to be some decent compromise in

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<v Speaker 3>terms of the overall headline. But as with China, similar

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<v Speaker 3>to the rest of the world, I think within the

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<v Speaker 3>ninety day period there will be specifics coming out not

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<v Speaker 3>only on a per country basis, but also exemptions and

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<v Speaker 3>adjustments to the teriff rates on a per sector basis.

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<v Speaker 3>That actually makes a lot more sense, right. The US

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<v Speaker 3>cares much more about what kind of products need to

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<v Speaker 3>come back to the US versus can continue to be

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<v Speaker 3>made overseas for economic or other supply chain reasons. So

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<v Speaker 3>I think there will be a lot more complex adjustments

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<v Speaker 3>the headline numbers for not only China but the rest

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<v Speaker 3>of the world over the coming weeks. But in the end,

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<v Speaker 3>China is still going to end up with a higher

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<v Speaker 3>headline tariff versus the rest of the world because the

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<v Speaker 3>US does want to incentimize the supply chain to migrate

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<v Speaker 3>out of China and into other markets where it feels

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<v Speaker 3>more friendly and more diversified.

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<v Speaker 1>So more of a decoupling here, And how bad could

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<v Speaker 1>this get? Do you think?

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<v Speaker 3>Well, I think the decoupling already started during the first

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<v Speaker 3>Trump administration of the first trade war, right, so it's

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<v Speaker 3>just going to continue, but it won't be a full

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<v Speaker 3>decoupling the way that people were assuming back in April,

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<v Speaker 3>when the reciprocal tariffs had gone out of control into

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<v Speaker 3>levels that were basically going to mean that there was

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<v Speaker 3>barely any activity on the trade front between the US

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<v Speaker 3>and China. So generally speaking, I think where the market

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<v Speaker 3>is pricing in is probably a pretty decently mild outcome already.

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<v Speaker 3>You can see that in both the Chinese equities as

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<v Speaker 3>well as US equities performance.

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<v Speaker 1>So how is this affecting your strategy these days? I mean,

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<v Speaker 1>what are you putting money to work in right now?

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<v Speaker 1>In Asia?

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<v Speaker 3>Generally, we've actually been looking at other markets outside of China.

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<v Speaker 3>So for example, you know, we've added to some of

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<v Speaker 3>our positions in Taiwan, Korea, and Japan as well as

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<v Speaker 3>Southeast Asia. In Taiwan, we had that massive move in

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<v Speaker 3>the NTD, which was unexpected and probably you know, not

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<v Speaker 3>as conspiracy much of a conspiracy as what people had

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<v Speaker 3>had feared. So some of the you know, tech supply

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<v Speaker 3>chain companies got hit aggressively on the back of that.

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<v Speaker 3>So we've been adding to that. Korea we've been positive

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<v Speaker 3>on for some time. The Korean Wan's been pressured by

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<v Speaker 3>the very strong US dollar last year, and that has

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<v Speaker 3>eased to some extent, and we actually think that the

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<v Speaker 3>value up efforts as well as the political situation are

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<v Speaker 3>both going to see some improvement off of relatively low base.

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<v Speaker 3>Japan was pressured by the fact that the yen kept

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<v Speaker 3>appreciating and you know, earlier this year because the dollar

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<v Speaker 3>was plummeting. Now I think the risk reward on the

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<v Speaker 3>currency front is a little bit more balanced and the

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<v Speaker 3>valuations are still fairly reasonable. In Southeast Asia, you know,

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<v Speaker 3>slam with a ton of very aggressive tariffs and people

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<v Speaker 3>are quite concerned. But I do think that like Mexico,

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<v Speaker 3>like some other places in Latin and Southeast Asia, those

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<v Speaker 3>tariffs will probably be brought down to very reasonable levels

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<v Speaker 3>going forward. And so as a result of that, we

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<v Speaker 3>think that you know, those are looking better. And then

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<v Speaker 3>obviously the weaker US dollar helps a lot as well.

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<v Speaker 1>To what extent is your strategy kind of concentrated in

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<v Speaker 1>the area of technology. You mentioned South Korea, I'm thinking

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<v Speaker 1>semiconductors Taiwan. There are other electronic components that are manufactured there.

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<v Speaker 1>Is it mostly centered around high tech?

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<v Speaker 3>Oh no, not necessarily. We're very versified investors across different

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<v Speaker 3>ASA classes, across different regions, across different sectors. So no,

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<v Speaker 3>it's definitely not purely tech. And you know, tech has

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<v Speaker 3>a pretty broad definition as well, everything from internet to software,

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<v Speaker 3>to hardware to semi et cetera. So we will pick

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<v Speaker 3>and choose between those different areas depending on where they

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<v Speaker 3>are in the cycle. We do think that the expectations

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<v Speaker 3>now for some of the AI plays is no longer low.

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<v Speaker 3>In the last couple of weeks, they've really popped quite

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<v Speaker 3>a bit. We do have a lot of those positions.

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<v Speaker 3>We're holding on to them, but we're not adding to

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<v Speaker 3>them at this point. But for example, some of the

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<v Speaker 3>smartphone and other hardware supply chain, I think the expectations

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<v Speaker 3>are very low at the moment, and you know, that

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<v Speaker 3>might be a good time to potentially, you know, add

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<v Speaker 3>to those positions. China Internet has rallied pretty dramatically since

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<v Speaker 3>the beginning of the year, and so you know, maybe

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<v Speaker 3>have to be a little bit more selective versus before.

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<v Speaker 3>And you know US software is more idiosyncratic than just

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<v Speaker 3>the beta trade, so various parts of tech are not

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<v Speaker 3>necessarily the same.

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<v Speaker 1>How are you feeling about US risk assets right now?

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<v Speaker 1>Do you have an appetite for US stocks?

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<v Speaker 3>Look, we added to US stocks and April on the selloff,

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<v Speaker 3>but now I think the risk reward is no longer

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<v Speaker 3>as obvious. This is basically because the market has pretty

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<v Speaker 3>much rebounded as if the trade war didn't really happen

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<v Speaker 3>to this extent and that there will be a pretty

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<v Speaker 3>decent resolution. Also, at some point the market was pricing

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<v Speaker 3>a much higher risk of recession. Now I think that

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<v Speaker 3>has been priced out to a certain extent, so the

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<v Speaker 3>room for further positive surprise on US equities is not

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<v Speaker 3>as great as before. But we do still think that

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<v Speaker 3>if we have a mild outcome in terms of the

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<v Speaker 3>trade negotiations, and Trump ends up being fairly reasonable and

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<v Speaker 3>people stop thinking that the US system is going to

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<v Speaker 3>be potentially breaking down quickly, then we actually see more

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<v Speaker 3>upside for treasury and fixing come versus equities in the

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<v Speaker 3>US at the moment will leave it.

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<v Speaker 1>There, Helen, It's always a pleasure. Thank you so much.

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<v Speaker 1>Helen Ju, managing partner, also the CIO at NF Trinity

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<v Speaker 1>from Hong Kong. Joining us here on the Daybreak Asia podcast.

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<v Speaker 1>Welcome back to the Daybreak Asia Podcast. I'm Doug Chrisner.

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<v Speaker 1>So the FED seems likely to resist the notion of

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<v Speaker 1>rate cuts, at least in the near term, given some

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<v Speaker 1>of the mounting headwinds we've been talking about for the

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<v Speaker 1>American economy. The founder of Bridgewater Associates, Ray Daalio, says

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<v Speaker 1>the FED should not be cutting rates right now. Here

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<v Speaker 1>is Dalio in conversation with Bloomberg Shanali Bosik speaking at

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<v Speaker 1>the BNP Parabah Annual Global Electric Vehicle and Mobility Conference.

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<v Speaker 4>I think the markets, if they were to see a

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<v Speaker 4>too aggressive cut and monetary policy too inappropriate cut, that

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<v Speaker 4>it would actually be bad for the bottom market.

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<v Speaker 1>That is Bridgewater founder Dalio speaking to Bloomberg Shanali Bossik

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<v Speaker 1>in Hong Kong. For a closer look at the macro

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<v Speaker 1>let's bring in Brian Vendig. He is the chief investment

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<v Speaker 1>officer at MJP Wealth Advisors. Brian is on the line

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<v Speaker 1>from Westport Connecticut. Brian, thank you so much for making

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<v Speaker 1>time to chat. How do you understand the economic risk

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<v Speaker 1>right now? Given the story on tariffs. I know this

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<v Speaker 1>is a very dynamic situation working pretty much in the

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<v Speaker 1>middle of a ninety day cooling off period, let's call

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<v Speaker 1>it a pause, But I'm curious to get your take

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<v Speaker 1>on where you think things stand right now.

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<v Speaker 5>Yeah, thanks, Doug. I mean, I think in the short

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<v Speaker 5>term there has been damage to the economy, as we've

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<v Speaker 5>seen with business leaders on surveys talking about slowing hiring,

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<v Speaker 5>slowing investment in their businesses, and obviously the consumer pulling

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<v Speaker 5>back a little bit, even though retail sales numbers in

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<v Speaker 5>the past have come in healthy. I think the concern

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<v Speaker 5>is moving forward, moving forward price sensitivity there So I

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<v Speaker 5>think damage has been done in the short term to

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<v Speaker 5>the economy. However, depending on the jump ball, on the

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<v Speaker 5>speed of further trade negotiations and are we going to

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<v Speaker 5>get to some meaningful trade negotiations of some of our

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<v Speaker 5>larger partners over the next sixty days on the first pause,

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<v Speaker 5>and of course China later on in the summer, I

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<v Speaker 5>think that's really where that economic risk is going to

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<v Speaker 5>present itself, because if we have some resolution on trade

0:12:27.040 --> 0:12:32.319
<v Speaker 5>and some improving confidence coming back to the business community

0:12:32.360 --> 0:12:34.760
<v Speaker 5>and consumers, then I still think over the second half

0:12:34.800 --> 0:12:37.280
<v Speaker 5>of the year the economy still has a chance or

0:12:37.360 --> 0:12:39.840
<v Speaker 5>some growth. However, of course, if things go to the

0:12:39.840 --> 0:12:42.880
<v Speaker 5>contrary and these negotiations are extended, then I think those

0:12:42.920 --> 0:12:45.920
<v Speaker 5>A session ods can continue to stay elevated up.

0:12:46.040 --> 0:12:48.520
<v Speaker 1>I'm curious to get your take on price pressure, as

0:12:48.559 --> 0:12:51.520
<v Speaker 1>we heard earlier in the week from Jamie Diamond, the

0:12:51.559 --> 0:12:53.880
<v Speaker 1>head of JP Morgan, and he was saying, the chances

0:12:53.920 --> 0:12:59.280
<v Speaker 1>of elevated inflation, even stagflation, are greater than people think.

0:12:59.360 --> 0:13:01.080
<v Speaker 1>Do you think that pretty much a risk?

0:13:01.600 --> 0:13:05.440
<v Speaker 5>I think stagflation is a risk in the short term

0:13:05.480 --> 0:13:08.160
<v Speaker 5>in the sense that we're going to start to see

0:13:09.000 --> 0:13:12.800
<v Speaker 5>price increases start to flow through. However, going back to

0:13:12.880 --> 0:13:16.440
<v Speaker 5>my comment about trade, and also just looking at earnings

0:13:16.440 --> 0:13:20.040
<v Speaker 5>forecasts right now, I mean earnings forecasts have been taken down,

0:13:20.080 --> 0:13:22.680
<v Speaker 5>but for Q two we're still looking at year over

0:13:22.760 --> 0:13:25.760
<v Speaker 5>year profits of about five and a half percent something

0:13:25.840 --> 0:13:28.560
<v Speaker 5>very similar. Still on the outlooks for Q three and

0:13:28.679 --> 0:13:31.160
<v Speaker 5>some improvement in Q four, and I think once we

0:13:31.200 --> 0:13:34.080
<v Speaker 5>get to July earnings we'll get some confirmation there. I

0:13:34.120 --> 0:13:38.880
<v Speaker 5>think if there is stagflation, assuming trade negotiation, and those

0:13:38.920 --> 0:13:41.840
<v Speaker 5>earnings outlooks cold when we get to July, then I

0:13:41.840 --> 0:13:45.679
<v Speaker 5>think Jamie Diamond's comments might be short lived and there

0:13:45.720 --> 0:13:47.960
<v Speaker 5>will be some disruption in the short term, but not

0:13:48.000 --> 0:13:51.280
<v Speaker 5>necessarily over the longer term. I think also at the

0:13:51.280 --> 0:13:55.439
<v Speaker 5>same point in time, when we think about the disruptions

0:13:55.480 --> 0:13:58.680
<v Speaker 5>that have happened with supply chains, in the short term,

0:13:58.880 --> 0:14:02.160
<v Speaker 5>inventory levels need to be restocked in June. We've heard

0:14:02.160 --> 0:14:05.040
<v Speaker 5>from Walmart, for example, saying, you know, we'll do our

0:14:05.040 --> 0:14:07.439
<v Speaker 5>best to try to control margin, but we're going to

0:14:07.480 --> 0:14:09.880
<v Speaker 5>have to pass on some of these prices. I think

0:14:09.880 --> 0:14:12.240
<v Speaker 5>that's a concern that investors have over the next two

0:14:12.240 --> 0:14:12.920
<v Speaker 5>to three months.

0:14:13.200 --> 0:14:15.080
<v Speaker 1>Let's talk a little bit about the bond market. We

0:14:15.120 --> 0:14:17.960
<v Speaker 1>had a backup in yields today, ever so slightly. The

0:14:18.000 --> 0:14:22.120
<v Speaker 1>budget negotiations today showed very little in the way of resolution,

0:14:22.280 --> 0:14:25.000
<v Speaker 1>and we were told that the President expressed a little

0:14:25.040 --> 0:14:29.080
<v Speaker 1>bit of frustration today with demands to significantly boost a

0:14:29.160 --> 0:14:32.680
<v Speaker 1>cap on state and local tax deductions. If you look

0:14:32.720 --> 0:14:35.360
<v Speaker 1>at all the variables right now that are influencing the

0:14:35.400 --> 0:14:39.040
<v Speaker 1>bond market, where is the fiscal story right now? As

0:14:39.120 --> 0:14:40.960
<v Speaker 1>something that's carrying weight.

0:14:41.920 --> 0:14:44.840
<v Speaker 5>Yeah, Doug. I mean, I think with the uncertainty around

0:14:44.840 --> 0:14:49.600
<v Speaker 5>the level of government spending and how much the new

0:14:49.640 --> 0:14:51.920
<v Speaker 5>bill that's getting worked onne in Congress is going to

0:14:52.000 --> 0:14:55.160
<v Speaker 5>add two budget deficits going forward, I think the bond

0:14:55.160 --> 0:14:58.520
<v Speaker 5>market is telling us, you know, that uncertainty is leading

0:14:58.560 --> 0:15:03.560
<v Speaker 5>to an app it's a confidence in holding treasuries right now,

0:15:03.600 --> 0:15:05.400
<v Speaker 5>and you're seeing a little bit of selling pressure there

0:15:05.440 --> 0:15:08.960
<v Speaker 5>with yields going up, very similar to the reaction that

0:15:09.000 --> 0:15:11.200
<v Speaker 5>we saw on the treasury market, you know, back in

0:15:11.240 --> 0:15:14.320
<v Speaker 5>the beginning of April with the announcement of tariffs on

0:15:14.400 --> 0:15:16.840
<v Speaker 5>Liberation Deck. I also think there's a little bit of

0:15:16.840 --> 0:15:20.440
<v Speaker 5>flow through as well with elevated yields because of those

0:15:20.480 --> 0:15:25.680
<v Speaker 5>concerns about prices increasing coming from tariffs as well in

0:15:25.720 --> 0:15:28.040
<v Speaker 5>the short term. So I really think it's a double

0:15:28.120 --> 0:15:32.040
<v Speaker 5>edged sword. But when once we get some resolution later

0:15:32.080 --> 0:15:35.120
<v Speaker 5>on this summer, I think with the Reconciliation Bill, and

0:15:35.200 --> 0:15:37.920
<v Speaker 5>we get a better clear view on taxes and spending,

0:15:38.280 --> 0:15:40.760
<v Speaker 5>I think there's a ceiling on yields in the treasury

0:15:40.800 --> 0:15:45.040
<v Speaker 5>market where we'd really be surprised we see yields, you know,

0:15:45.080 --> 0:15:47.360
<v Speaker 5>shoot past you know, four point seven or four point

0:15:47.400 --> 0:15:49.600
<v Speaker 5>eight on the ten years, So definitely keeping a close

0:15:49.600 --> 0:15:52.239
<v Speaker 5>eye on it. But I think it's it's not surprising

0:15:52.480 --> 0:15:54.960
<v Speaker 5>in seeing that that slite increase based on today's news.

0:15:55.160 --> 0:15:57.320
<v Speaker 1>Before I get your view on how to put new

0:15:57.360 --> 0:15:59.840
<v Speaker 1>money to work in these markets, I want to address

0:16:00.040 --> 0:16:04.720
<v Speaker 1>geopolitical risk because we were getting indications from CNN that

0:16:05.000 --> 0:16:08.560
<v Speaker 1>US intelligence has suggested that Israel is planning to make

0:16:08.600 --> 0:16:13.160
<v Speaker 1>preparations to possibly strike Iranian nuclear facilities, and crude oil

0:16:13.240 --> 0:16:15.400
<v Speaker 1>right now is up by more than two percent in

0:16:15.440 --> 0:16:19.960
<v Speaker 1>the electronic session. How are you waiting geopolitics, whether it's

0:16:19.960 --> 0:16:22.600
<v Speaker 1>in the Mid East or whether we're talking about trying

0:16:22.640 --> 0:16:26.080
<v Speaker 1>to find an end to war in Ukraine. Well, when

0:16:26.080 --> 0:16:26.480
<v Speaker 1>you look.

0:16:26.360 --> 0:16:32.120
<v Speaker 5>Back historically when geopolitical events come up, you know they're

0:16:32.160 --> 0:16:36.040
<v Speaker 5>primarily short lived, and yes they create violatility and disruption

0:16:36.120 --> 0:16:38.720
<v Speaker 5>in the market. But if you still have a longer

0:16:38.840 --> 0:16:42.000
<v Speaker 5>term view, focusing on earnings, fundamentals and some of the

0:16:42.000 --> 0:16:44.800
<v Speaker 5>things we talked about, you know earlier, I think having

0:16:44.880 --> 0:16:48.160
<v Speaker 5>a broadly diversified portfolio in this in this environment is

0:16:48.160 --> 0:16:49.960
<v Speaker 5>still going to is going to help you weather through

0:16:50.000 --> 0:16:53.880
<v Speaker 5>the storm. So you know, I don't see gold, you know,

0:16:53.920 --> 0:16:56.280
<v Speaker 5>I see gold appreciating. When you go through these types

0:16:56.280 --> 0:17:00.800
<v Speaker 5>of geopolitical uncertainties, yields usually come in which favor more

0:17:00.840 --> 0:17:03.240
<v Speaker 5>conservative investments like bonds. And I think when you think

0:17:03.280 --> 0:17:06.080
<v Speaker 5>about equities, you know, just making making sure in this

0:17:06.240 --> 0:17:09.280
<v Speaker 5>environment was so much going on that you're not overpaying

0:17:09.320 --> 0:17:12.480
<v Speaker 5>for growth, uh, and making sure that your your balance

0:17:12.560 --> 0:17:16.240
<v Speaker 5>between value stocks, uh, mid cap stocks that really haven't

0:17:16.280 --> 0:17:19.639
<v Speaker 5>participated as much in the past in market rallies are

0:17:19.880 --> 0:17:22.040
<v Speaker 5>good ways to kind of hedge a little bit in

0:17:22.040 --> 0:17:24.359
<v Speaker 5>the short term against those geopolitical events.

0:17:24.440 --> 0:17:27.160
<v Speaker 1>How are you viewing markets offshore right now? Are there

0:17:27.240 --> 0:17:29.280
<v Speaker 1>opportunities that you're taking advantage of?

0:17:29.880 --> 0:17:34.200
<v Speaker 5>Oh, definitely, you know, we we added to international equities, uh,

0:17:34.400 --> 0:17:37.040
<v Speaker 5>you know, a couple of months ago, especially more on

0:17:37.080 --> 0:17:42.440
<v Speaker 5>the news of UH countries wanting to reinvest in themselves,

0:17:42.520 --> 0:17:46.280
<v Speaker 5>relooking at fiscal policies that are helping US support domestic

0:17:46.359 --> 0:17:50.280
<v Speaker 5>economic growth as the US is evaluating uh, you know,

0:17:50.400 --> 0:17:53.760
<v Speaker 5>trade and maybe taking a step back and decoupling from

0:17:53.760 --> 0:17:57.320
<v Speaker 5>some aspects of of of a global economy. And I

0:17:57.320 --> 0:18:01.720
<v Speaker 5>think valuations there on international equities are definitely a lot

0:18:01.720 --> 0:18:04.240
<v Speaker 5>more fair per se than you know than S and

0:18:04.320 --> 0:18:06.840
<v Speaker 5>P that's back up to you know, a four pe

0:18:07.560 --> 0:18:10.399
<v Speaker 5>with a twenty handle, while international equities are in the

0:18:10.440 --> 0:18:13.920
<v Speaker 5>low teams. So I think being selective in developed markets

0:18:14.160 --> 0:18:16.320
<v Speaker 5>right now makes a lot of sense. We like Europe,

0:18:16.359 --> 0:18:21.200
<v Speaker 5>we like Japan and specific parts of Latin South America.

0:18:21.520 --> 0:18:23.360
<v Speaker 5>But I think at the same point in time, there's

0:18:23.400 --> 0:18:27.119
<v Speaker 5>been a huge run international equities, Doug, so I wouldn't

0:18:27.160 --> 0:18:29.240
<v Speaker 5>be surprised if there's a little consolidation to find a

0:18:29.280 --> 0:18:31.119
<v Speaker 5>better edgy point moving forward.

0:18:31.240 --> 0:18:32.879
<v Speaker 1>All right, Brian, we'll leave it there. Thank you so

0:18:32.960 --> 0:18:35.159
<v Speaker 1>much for joining us. Brian Vendig there. He is the

0:18:35.240 --> 0:18:40.840
<v Speaker 1>chief investment Officer at MJP Wealth Advisors, joining from Westport, Connecticut.

0:18:40.960 --> 0:18:46.240
<v Speaker 1>Here on the Daybreak Asia Podcast. Thanks for listening to

0:18:46.240 --> 0:18:51.200
<v Speaker 1>today's episode of the Bloomberg Daybreak Asia Edition podcast. Each weekday,

0:18:51.240 --> 0:18:55.160
<v Speaker 1>we look at the story shaping markets, finance, and geopolitics

0:18:55.160 --> 0:18:58.439
<v Speaker 1>in the Asia Pacific. You can find us on Apple, Spotify,

0:18:58.600 --> 0:19:02.080
<v Speaker 1>the Bloomberg Podcast Tube channel, or anywhere else you listen.

0:19:02.520 --> 0:19:05.399
<v Speaker 1>Join us again tomorrow for insight on the market moves

0:19:05.480 --> 0:19:10.000
<v Speaker 1>from Hong Kong to Singapore and Australia. I'm Doug Prisoner

0:19:10.160 --> 0:19:11.560
<v Speaker 1>and this is Bloomberg