WEBVTT - Markets Dip on Mixed US Eco Data, Waning Fed Bets

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

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

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<v Speaker 2>Markets in the Asia Pacific will be playing off a

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<v Speaker 2>mixed day for US equities. Of the eleven industry groups

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<v Speaker 2>within the S and P five hundred, only one was

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<v Speaker 2>positive information tech and that was due to news on

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<v Speaker 2>Nvidia and Advanced micro Devices resuming some chip sales to China.

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<v Speaker 2>We'll take a closer look at that story when we

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<v Speaker 2>catch up with Ray Wang at the Futureum Group, but

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<v Speaker 2>we begin with market action in the States. Joining me

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<v Speaker 2>now is Chuck Camillo. He is president and CEO at

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<v Speaker 2>Essex Financial Services. He's on the line from Essex, Connecticut. Chuck,

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<v Speaker 2>thank you so much for taking time to chat with me.

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<v Speaker 2>I'm curious as to what you're hearing from clients these

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<v Speaker 2>days in the current environment.

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<v Speaker 3>Sure teb Well, thank you so much for having me.

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<v Speaker 4>Yeah, I mean, we've just gone through a heck of

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<v Speaker 4>three months in change, all away from Liberation Day and

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<v Speaker 4>a twenty percent sell off in the market to where

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<v Speaker 4>we are now. Where Monday mark the sixty fifth trading

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<v Speaker 4>day from the below in April and the S and

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<v Speaker 4>P five hundreds of twenty six percent, So you know,

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<v Speaker 4>clients were a little bit whipsawed, but I would say

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<v Speaker 4>buy and large. They you know, stayed the course and

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<v Speaker 4>we did a lot of work, you know, a lot

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<v Speaker 4>of handholding and trying to explain things, and you know,

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<v Speaker 4>we made sure people tried to focus on the long term.

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<v Speaker 4>But people are generally, you know, in a good place

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<v Speaker 4>right now, certainly with positive moves in the market since

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<v Speaker 4>April obviously, but you know, this has been the most

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<v Speaker 4>you know, I'm trying to get right word that the

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<v Speaker 4>most extreme views based on someone's politics in terms of

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<v Speaker 4>the market. You know, people's politics always tend to drive

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<v Speaker 4>what they think, but it's never been more extreme than

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<v Speaker 4>we're seeing it right now, which I which I guess

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<v Speaker 4>is a reflection of the.

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<v Speaker 3>Country writ large.

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<v Speaker 4>But generally though people are doing well, stayed the course

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<v Speaker 4>and you know, are where seeing people updug just to

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<v Speaker 4>expect more volatility. You know, it's going to be a

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<v Speaker 4>bumpy ride, but there's a lot of challenges ahead and

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<v Speaker 4>there's all some good things add so we will see.

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<v Speaker 2>So we had this reading on consumer inflation this morning

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<v Speaker 2>for the month of June, relatively tame reading. But I

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<v Speaker 2>think the street is still worried about the potential inflationary

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<v Speaker 2>impacts of the tariffs. Is that something that you share

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<v Speaker 2>right now when you look at the tariff story.

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<v Speaker 4>Yeah, I think everybody's concerned about that because anecdotally, right,

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<v Speaker 4>I mean, a tariff is attacks, it obviously is inflationary.

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<v Speaker 3>However, you know, the more.

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<v Speaker 4>Time that goes by since April when these very high

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<v Speaker 4>tariffs were initially rolled out and then rolled back, you know,

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<v Speaker 4>companies have proven to be very nimble and sort of

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<v Speaker 4>getting their heads around how best to handle this. But

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<v Speaker 4>you know, inflation is one of the worst things that

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<v Speaker 4>can happen in an economy. It also drives so many

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<v Speaker 4>things regarding interest rates and the bigger picture that higher

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<v Speaker 4>rates versus lower rates have, and then throw in rates

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<v Speaker 4>with President Trump and Drome Powell and all the noise

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<v Speaker 4>that comes with that, and it just continues to cause

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<v Speaker 4>a cause uncertainty. Personally, I don't think we see inflation

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<v Speaker 4>skyrocketing by any stretch. I think even this past monthly number,

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<v Speaker 4>you had some things that were more terrorf sensitive, such

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<v Speaker 4>as a parel rise, but you had that offset by

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<v Speaker 4>reductions and car prices in airlines. So I think we're

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<v Speaker 4>just sort of going to bounce around here in this range.

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<v Speaker 4>But the bottom line, it was up. I don't think

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<v Speaker 4>anybody was surprised by that. It was in line with expectations.

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<v Speaker 4>But listen, higher inflation is a headwind in just about

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<v Speaker 4>every area. But you know, companies, the economy have been

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<v Speaker 4>extremely healthy, extremely resilient, and we're optimistic that at the

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<v Speaker 4>end of the day, you know, teriffstonetally help anybody. I

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<v Speaker 4>think we'll get hopefully to a more normalized place and

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<v Speaker 4>then we can continue to try to grow this market

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<v Speaker 4>and grow this economy.

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<v Speaker 2>So markets seem to be pricing in somewhat lower odds

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<v Speaker 2>of more than one rate cut this year. How do

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<v Speaker 2>you see the Fed proceeding between now in year's end.

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<v Speaker 4>Yeah, and they especially with this most recent inflation report.

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<v Speaker 4>I mean, they have certainly every reason to wait. There's

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<v Speaker 4>no clear direction in terms of what you know, Well, listen,

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<v Speaker 4>we're going to get PEPI tomorrow, which will be interesting,

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<v Speaker 4>but there's certainly no hard evidence for proof that we're

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<v Speaker 4>through this and that you know, the FED can say, okay, great,

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<v Speaker 4>all clear, We'll start cutting rates. They don't want to

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<v Speaker 4>make the same mistake, right, they made the big transitory

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<v Speaker 4>mistake coming out of COVID.

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<v Speaker 3>They absolutely don't.

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<v Speaker 4>Want to have to They don't want to make the

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<v Speaker 4>mistake of cutting rates and then all of a sudden

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<v Speaker 4>inflation just jumps and they got to vent raise rates.

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<v Speaker 3>That's the absolute nightmare scenario.

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<v Speaker 4>But at the same time, they can't just cut rates

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<v Speaker 4>for the sake of cutting rates. I mean, you got

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<v Speaker 4>to be careful what you asked for. Last year, the

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<v Speaker 4>Fed cut rates one hundred basis points right September November December,

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<v Speaker 4>and the ten year treasury went from three point six

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<v Speaker 4>percent to four point eight percent. So if the market does,

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<v Speaker 4>if the market doesn't agree that the move is the

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<v Speaker 4>right move, it's going to reject it. And I think

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<v Speaker 4>that's the big risks out there in terms of the

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<v Speaker 4>bond market, which again I think was one of the

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<v Speaker 4>big reasons why President Trump rolled back the tariffs that

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<v Speaker 4>he rolled out in the beginning of April.

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<v Speaker 2>So we had some bank earnings this morning, kind of

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<v Speaker 2>a mixed bag. JP Morgan Chase with a surprise gain

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<v Speaker 2>and investment banking income and if you look what what

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<v Speaker 2>City Group had to say, revenue from fixed income trading

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<v Speaker 2>was pretty robust wells Fargo, on the other hand, cut

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<v Speaker 2>its guidance for net interest income. How are you feeling

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<v Speaker 2>about the financials broadly?

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<v Speaker 4>I think broadly we feel really good about him. You know,

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<v Speaker 4>this type of environment generally abodes well for them. I

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<v Speaker 4>think I think your phrase mixed bag sums it up

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<v Speaker 4>perfectly right. JP Morgan's report is actually pretty good. They

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<v Speaker 4>dropped a little bit today. City has been such a

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<v Speaker 4>challenging mess for so many years. You know that the

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<v Speaker 4>stock buyback they announced as well was a big thing.

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<v Speaker 4>And I think the news with JP Morgan in terms

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<v Speaker 4>of about the better results coming out of investment banking

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<v Speaker 4>hopefull bodes well for the overall market in terms of

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<v Speaker 4>more deals and things being done, especially maybe with the

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<v Speaker 4>hope of some deregulation coming down the pike. So overall,

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<v Speaker 4>you know, we're we're bullish on financials, but as in

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<v Speaker 4>any sector, you're going to have some that outperform, and

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<v Speaker 4>you're gonna have some that you know, trip.

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<v Speaker 3>All over themselves.

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<v Speaker 4>But overall, financials should have done well this year, and

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<v Speaker 4>hopefully we'll continue to do so.

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<v Speaker 2>We had a lot of positivity when it came to

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<v Speaker 2>tech today, the big news was in Nvidia and AMD

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<v Speaker 2>saying that they're going to be able to resume some

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<v Speaker 2>chip sales to China. This is obviously all a part

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<v Speaker 2>of the AI theme. And at the same time today

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<v Speaker 2>we had President Trump in Pennsylvania talking about a big

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<v Speaker 2>project for AI and also energy development that would be

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<v Speaker 2>used to power those data centers. This is obviously a

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<v Speaker 2>trade that's still getting a lot of attention. I'm curious, Chuck,

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<v Speaker 2>as to how you're playing it.

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<v Speaker 3>Yeah, boy, it sure is getting some attention, right.

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<v Speaker 4>You think about where Nvidia was, you know, beginning of

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<v Speaker 4>April there, you know, traded you know, well below one

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<v Speaker 4>hundred dollar and it's a one seventy and one seventy.

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<v Speaker 4>I think you closed that today. You know I've mentioned

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<v Speaker 4>to you before. I think you you don't own tech

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<v Speaker 4>at your own peril. I mean, I think it is

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<v Speaker 4>an unbelievable time in you know, the country and in

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<v Speaker 4>the world's history in terms of whatever is about to

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<v Speaker 4>come with AI.

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<v Speaker 3>Uh, the level.

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<v Speaker 4>And the impact that will probably have on everybody's lives

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<v Speaker 4>over the next ten to fifteen years. You know, we

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<v Speaker 4>were having a discussion about you know, you never thought

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<v Speaker 4>about all the things that would change in your life

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<v Speaker 4>and to make things easier and better, and certainly the

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<v Speaker 4>rest of challenges. You know, when the iPhone came out

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<v Speaker 4>and the internet launched, right, I mean thinking about Google

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<v Speaker 4>Maps or you know, door Dash or pick any app

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<v Speaker 4>you choose, of how that's impacted every single person's life.

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<v Speaker 4>We're we seem to be on the cusp of that,

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<v Speaker 4>and so I think you're going to have volatility. I

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<v Speaker 4>think that volatility is an opportunity to buy. But these

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<v Speaker 4>these cutting edge leading, you know, American companies, you know,

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<v Speaker 4>I think it's something you certainly want to own.

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<v Speaker 2>Do you think think we're closer to some type of

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<v Speaker 2>resolution when it comes to these various trade deals? And

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<v Speaker 2>we had an announcement today from President Trump on a

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<v Speaker 2>trade deal with Indonesia. Obviously China when you look at Asia,

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<v Speaker 2>is the big wild card here. But I'm wondering whether

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<v Speaker 2>we're beginning to get a little bit of relief in markets.

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<v Speaker 4>Yeah, you know, boy, I wish I knew the answer

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<v Speaker 4>for that one, for sure. I think the safest thing

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<v Speaker 4>to say is we're closer to some sort of conclusion

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<v Speaker 4>than we were before, you know, and who knows in

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<v Speaker 4>terms of this agreement with Nvidia being allowed to sell

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<v Speaker 4>these chips to China, if that's part of a bigger picture,

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<v Speaker 4>bide into getting these rare earths out of China. I mean,

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<v Speaker 4>so the way that we view it is it's gotten

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<v Speaker 4>better now. You and I both know I could change

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<v Speaker 4>on a dime with a tweet or whatever it might be.

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<v Speaker 4>But I think the reason that the market has run

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<v Speaker 4>so much, and the reason there is this more optimistic

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<v Speaker 4>feeling is that we saw the worst. I don't think

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<v Speaker 4>back at being in April. I don't think we ever

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<v Speaker 4>go back to that. And I think it's also in

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<v Speaker 4>no one's best interest to have these tariffs that are

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<v Speaker 4>to bilititting to everybody. So hopefully, you know, there's negotiations

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<v Speaker 4>that occur to get us to a better place and

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<v Speaker 4>wrap this up. But it certainly seems like and I

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<v Speaker 4>think the news flow and some of the things that

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<v Speaker 4>have come out of this that do prove that out

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<v Speaker 4>that we're getting closer to it and then we can

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<v Speaker 4>get to a better place so that at least this

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<v Speaker 4>part of the volatility in the market tamps down and

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<v Speaker 4>you don't have to be on the edge of your

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<v Speaker 4>seat every day waiting for some sort of press release

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<v Speaker 4>or tweet or something on truth social.

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<v Speaker 2>Are you still primarily focused on looking for opportunity in

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<v Speaker 2>the US or are you more curious about things offshore

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<v Speaker 2>these days.

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<v Speaker 4>No, we've always you know, we've always had us leave

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<v Speaker 4>of client assets that we look to invest outside the US.

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<v Speaker 4>I mean, I think the average US investor has always

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<v Speaker 4>historically been underweight non US investments, and quite candidly performance

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<v Speaker 4>wise for good reason.

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<v Speaker 3>But look, if you look at.

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<v Speaker 4>The MSCI e FA Index over the past three years,

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<v Speaker 4>it's outperformed the Dow, It's outperformed the Russell two thousand,

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<v Speaker 4>and you know, it's still trailing obviously NASDAK and the

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<v Speaker 4>S and P. But it's combat very wrong. But no,

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<v Speaker 4>we're we constantly do look there, whether it's through mutual

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<v Speaker 4>funds with great managers or ETFs to play the non

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<v Speaker 4>US side of things, and that also includes emerging markets,

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<v Speaker 4>but to a to a smaller percentage for the average client.

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<v Speaker 2>What about the US bond market or US treasuries.

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<v Speaker 4>Yeah, listen, treasury bills are a great place to hide out.

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<v Speaker 4>I mean we've we've we've done a ton of them.

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<v Speaker 4>I mean that that's the million dollar question what happens

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<v Speaker 4>with rates, and I think there certainly is some concern

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<v Speaker 4>there that depending upon what happens with you know, you know,

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<v Speaker 4>hopefully there's not you know, we don't all of a

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<v Speaker 4>sudden wake up in President Trump's fire chair, Powell, but

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<v Speaker 4>no treasuries, you know, were born change on treasury bills

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<v Speaker 4>or a great place for clients to hide out. We

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<v Speaker 4>had a great municipal manager in the office today talking

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<v Speaker 4>to us about the municipal market. We think there's a

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<v Speaker 4>lot of opportunities there and the intermediate range of maturities,

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<v Speaker 4>so no, we think it is the right opportunity. But

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<v Speaker 4>you know, I think equities obviously a longer term give

0:10:55.280 --> 0:10:57.319
<v Speaker 4>you more volatility but a greater return. But for somebody

0:10:57.320 --> 0:10:59.319
<v Speaker 4>that's a little bit more conservative or looking for a hedge,

0:10:59.480 --> 0:11:01.520
<v Speaker 4>I think fixed income now with these rates and with

0:11:01.559 --> 0:11:04.840
<v Speaker 4>these coupons in this raid environment, do give you a

0:11:04.880 --> 0:11:07.200
<v Speaker 4>much more give you much more cushion than you got

0:11:07.320 --> 0:11:07.760
<v Speaker 4>years ago.

0:11:08.080 --> 0:11:09.960
<v Speaker 2>Chuck will leave it there. It's always a pleasure, Thank

0:11:09.960 --> 0:11:12.280
<v Speaker 2>you so very much. Chuck Camello there. He is president

0:11:12.320 --> 0:11:15.960
<v Speaker 2>also the CEO at Essex Financial Services. On the line

0:11:15.960 --> 0:11:26.640
<v Speaker 2>from Essex, Connecticut here on the Daybreak Asia Podcast. Welcome

0:11:26.640 --> 0:11:30.320
<v Speaker 2>back to the Daybreak Asia Podcast. I'm dek Krisner. Nvidia

0:11:30.600 --> 0:11:33.840
<v Speaker 2>and Advanced micro Devices are planning to resume sales of

0:11:33.880 --> 0:11:37.120
<v Speaker 2>some AI chips in China. These companies say they've been

0:11:37.160 --> 0:11:40.880
<v Speaker 2>given assurances from the Trump administration that such shipments will

0:11:40.920 --> 0:11:45.160
<v Speaker 2>be approved. The key issue here is the necessary licenses,

0:11:45.360 --> 0:11:48.320
<v Speaker 2>and in the case of Nvidia, it's the H twenty

0:11:48.440 --> 0:11:52.240
<v Speaker 2>artificial intelligence accelerator. This move, by the way, could add

0:11:52.280 --> 0:11:55.880
<v Speaker 2>billions of dollars to Nvidia's revenue this year. For a

0:11:55.880 --> 0:11:58.960
<v Speaker 2>closer look, we heard from Ray Wong. He is research

0:11:59.040 --> 0:12:02.040
<v Speaker 2>director at the few Terum Group. Ray spoke earlier with

0:12:02.080 --> 0:12:04.480
<v Speaker 2>Bloomberg's HEII Stroud Watts and Paul Allen.

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<v Speaker 5>Right, thanks so much for joining us. I just wonder

0:12:07.840 --> 0:12:10.760
<v Speaker 5>if you can explain fir US what you see as

0:12:10.760 --> 0:12:14.920
<v Speaker 5>being the impact on the video's bottom line considering this reversal.

0:12:14.920 --> 0:12:17.640
<v Speaker 5>I mean, previously it was selling about fifteen billion dollars

0:12:17.960 --> 0:12:20.560
<v Speaker 5>worth of chips to China. Can those sorts of numbers

0:12:20.559 --> 0:12:21.439
<v Speaker 5>be recaptured?

0:12:22.080 --> 0:12:23.240
<v Speaker 3>Hi boy, hey Gred morning.

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<v Speaker 6>Yeah, definitely, this is a huge news, not just for

0:12:26.080 --> 0:12:29.080
<v Speaker 6>MDIA and also for AMVA, potentially auto chip makers. Right

0:12:29.400 --> 0:12:33.760
<v Speaker 6>in April, there's a new informulator from BAS that restricted

0:12:34.080 --> 0:12:37.559
<v Speaker 6>H twenty five media and autoships that have similar capabilities

0:12:37.640 --> 0:12:40.320
<v Speaker 6>in terms of memory, bandwidth and networking speed.

0:12:40.960 --> 0:12:41.880
<v Speaker 3>This is huge for a.

0:12:41.960 --> 0:12:47.120
<v Speaker 6>Media because now they can re enter Chinese market with

0:12:47.160 --> 0:12:50.000
<v Speaker 6>their H twenty ships and also the upcoming P thirty

0:12:50.520 --> 0:12:54.240
<v Speaker 6>or RTX six thousand D ships they're going to China,

0:12:54.320 --> 0:12:56.240
<v Speaker 6>and this is significant offsites.

0:12:56.679 --> 0:12:57.719
<v Speaker 3>Here in Forturing we.

0:12:57.720 --> 0:13:02.680
<v Speaker 6>Model together between B thirty and also H twenty that

0:13:02.760 --> 0:13:07.720
<v Speaker 6>could bring potessional, potentially additional seven to eight billion revenue

0:13:07.720 --> 0:13:10.080
<v Speaker 6>a quarter for NBDIA and this is huge.

0:13:10.440 --> 0:13:13.360
<v Speaker 5>Well, if history shown us anything it's that the Trump

0:13:13.400 --> 0:13:16.520
<v Speaker 5>White House can be somewhat mercurial in terms of its

0:13:16.520 --> 0:13:20.559
<v Speaker 5>decision making. How much confidence can Nvidia have van imd

0:13:21.200 --> 0:13:23.120
<v Speaker 5>that this reversal is going to be permanent, that it

0:13:23.120 --> 0:13:24.160
<v Speaker 5>won't be reversed again.

0:13:24.640 --> 0:13:28.880
<v Speaker 6>Yeah, I see this policy shift is relatively permanent in

0:13:28.880 --> 0:13:30.839
<v Speaker 6>a way that this is number one, this is part

0:13:30.840 --> 0:13:33.600
<v Speaker 6>of the negotiation with US and China. And I see

0:13:33.640 --> 0:13:36.560
<v Speaker 6>there's a policy aliement between n media and also the

0:13:36.600 --> 0:13:40.360
<v Speaker 6>current strong administration because remember back into April, there's a

0:13:40.520 --> 0:13:44.319
<v Speaker 6>contentious intension between administration and media because they couldn't really

0:13:44.400 --> 0:13:48.720
<v Speaker 6>figure out the controversy around h twenty. But right now

0:13:49.120 --> 0:13:53.160
<v Speaker 6>after the policy ship, I see more policy aliment between media,

0:13:53.600 --> 0:13:56.079
<v Speaker 6>the Trump Minstration and also other airtion makers.

0:13:57.120 --> 0:13:59.360
<v Speaker 1>Right, you're seeing on our screens at the moment top

0:13:59.400 --> 0:14:03.240
<v Speaker 1>three percent of making up three percent of total global market.

0:14:03.320 --> 0:14:03.560
<v Speaker 3>Cup.

0:14:04.120 --> 0:14:07.840
<v Speaker 1>How much bigger can this company get given the presumed

0:14:07.880 --> 0:14:10.439
<v Speaker 1>presumption of business in this key market.

0:14:10.760 --> 0:14:13.760
<v Speaker 6>Yeah, I think there's a still significant upside right right now,

0:14:13.760 --> 0:14:16.520
<v Speaker 6>we'll talk about in a let's say, in Q three

0:14:16.600 --> 0:14:18.880
<v Speaker 6>and Q four, right, we'll talk about additional seven to

0:14:18.960 --> 0:14:22.560
<v Speaker 6>eight billion revenue coming off from China, and you know,

0:14:23.080 --> 0:14:24.920
<v Speaker 6>throughout the rest of the twenty twenty five we'll talk

0:14:24.960 --> 0:14:28.440
<v Speaker 6>about fifteen to twenty billion in the second half this

0:14:28.560 --> 0:14:31.760
<v Speaker 6>year and moving forward in twenty twenty six. I believe

0:14:31.800 --> 0:14:35.000
<v Speaker 6>there's your strong AI demand in terms of a training

0:14:35.160 --> 0:14:37.920
<v Speaker 6>AI inference coming on from China because we are seeing

0:14:37.960 --> 0:14:41.880
<v Speaker 6>significant and rapidly developments in Chinese AI landscape.

0:14:42.520 --> 0:14:44.640
<v Speaker 1>Another way I'm looking at it is just how big

0:14:44.920 --> 0:14:47.840
<v Speaker 1>video is when it comes to some very very big countries.

0:14:47.920 --> 0:14:50.720
<v Speaker 1>This start showing that video is larger than Canada. If

0:14:50.760 --> 0:14:53.040
<v Speaker 1>it adds another trillion in market cup it would be

0:14:53.840 --> 0:14:56.040
<v Speaker 1>contending with the size of India as well.

0:14:56.800 --> 0:14:57.440
<v Speaker 3>Pole sort of.

0:14:58.400 --> 0:15:01.760
<v Speaker 1>Talked about some of the you know, policy uncertainties from

0:15:01.760 --> 0:15:04.160
<v Speaker 1>the Trump administration. We know that, you know that is

0:15:04.200 --> 0:15:08.160
<v Speaker 1>a tendency for this administration, but how much of this

0:15:08.200 --> 0:15:13.320
<v Speaker 1>is really a watershed moment for Chinese policy makers. Does

0:15:13.360 --> 0:15:15.920
<v Speaker 1>the sort of argument that the White House is making

0:15:16.000 --> 0:15:18.360
<v Speaker 1>in terms of the advantages to the US make sense

0:15:18.400 --> 0:15:18.600
<v Speaker 1>to you?

0:15:19.760 --> 0:15:22.760
<v Speaker 6>I think it actually makes sense because this really complicates

0:15:22.760 --> 0:15:26.160
<v Speaker 6>two things. Number One, when you have more Amedia chips

0:15:26.200 --> 0:15:29.560
<v Speaker 6>right now, going back to China, it's actually marginalized. A

0:15:29.560 --> 0:15:33.480
<v Speaker 6>lot of Chinese domestic chip makers, including Huawei, can become

0:15:33.800 --> 0:15:39.400
<v Speaker 6>higen inframe. All those domestic air chimmakers, right they really marginalized,

0:15:39.520 --> 0:15:44.320
<v Speaker 6>marginalize their potential market in China. Right from a Beating's perspective,

0:15:44.480 --> 0:15:48.960
<v Speaker 6>this will make the self sufficiency self sufficiency pushed in

0:15:49.040 --> 0:15:52.160
<v Speaker 6>air chips even harder because right now there will be

0:15:52.200 --> 0:15:56.400
<v Speaker 6>still significant reliance on a media MD solutions in terms

0:15:56.440 --> 0:15:57.240
<v Speaker 6>of air hardware.

0:15:58.680 --> 0:16:01.480
<v Speaker 5>How long is that situation going to endure? Though, Because

0:16:01.480 --> 0:16:04.000
<v Speaker 5>while those curves were in place, we saw China becoming

0:16:04.080 --> 0:16:07.120
<v Speaker 5>very creative and not just finding ways to circumvent them,

0:16:07.120 --> 0:16:10.880
<v Speaker 5>but also nurturing its own homegrown version of this. Are

0:16:10.960 --> 0:16:14.640
<v Speaker 5>there any equivalents saw better than the Age twenty chip,

0:16:15.040 --> 0:16:17.160
<v Speaker 5>either in production and development in China?

0:16:17.960 --> 0:16:20.520
<v Speaker 6>Well, I think in terms of Age twenty given the

0:16:20.640 --> 0:16:24.600
<v Speaker 6>memory bandwidth importance for AI inference, I think for now

0:16:24.720 --> 0:16:28.400
<v Speaker 6>there's not much solutions right in China that is comparable

0:16:28.440 --> 0:16:31.320
<v Speaker 6>to n media. But this reflect to an media's sort

0:16:31.360 --> 0:16:34.480
<v Speaker 6>of media and long term concern, right, because essentially they

0:16:34.520 --> 0:16:37.840
<v Speaker 6>can only sell chips that under the new Asper control

0:16:37.920 --> 0:16:40.520
<v Speaker 6>thrashold right, So in the long term, I do think

0:16:40.560 --> 0:16:43.720
<v Speaker 6>there's a concern that there will be other competitors against ANBDIA.

0:16:43.800 --> 0:16:45.920
<v Speaker 6>But I think for now in China and media is

0:16:46.120 --> 0:16:49.600
<v Speaker 6>still well, you know, maintaining its technological and market leadership.

0:16:50.400 --> 0:16:52.680
<v Speaker 1>Is this a game changer for some of the homegrown

0:16:52.720 --> 0:16:54.600
<v Speaker 1>AI then the likes of deep.

0:16:54.400 --> 0:16:57.440
<v Speaker 6>Sick, Yeah, I think it's definitely. The ones for number

0:16:57.440 --> 0:16:59.760
<v Speaker 6>one did give them more computes, right, But this is

0:16:59.800 --> 0:17:03.360
<v Speaker 6>the the chips that is one at least one generation

0:17:03.480 --> 0:17:05.719
<v Speaker 6>behind blickwell, right, and you know, if you look at

0:17:05.760 --> 0:17:10.040
<v Speaker 6>a computational performance and mary bangweb is really not compare

0:17:10.359 --> 0:17:13.280
<v Speaker 6>comparable to the current ships that most of the US

0:17:13.359 --> 0:17:17.360
<v Speaker 6>companies are using. And I think another thing is this

0:17:17.520 --> 0:17:21.119
<v Speaker 6>really complicates a lot of domestic Chinese ship makers because

0:17:21.800 --> 0:17:25.840
<v Speaker 6>essentially they want to fulfill the market's share their lab media.

0:17:25.880 --> 0:17:28.159
<v Speaker 6>But right now Amedia coming back to the market, I

0:17:28.160 --> 0:17:30.520
<v Speaker 6>think that makes things a lot more difficult.

0:17:31.240 --> 0:17:32.800
<v Speaker 1>Right, Really great to have you with us, very well,

0:17:32.880 --> 0:17:36.080
<v Speaker 1>Research director for Semiconductor, Supply Chain and Emerging Tech at

0:17:36.119 --> 0:17:36.960
<v Speaker 1>the Food From Group.

0:17:39.080 --> 0:17:42.440
<v Speaker 2>Thanks for listening to today's episode of the Bloomberg Daybreak

0:17:42.600 --> 0:17:45.960
<v Speaker 2>Asia Edition podcast. Each weekday, we look at the story

0:17:46.040 --> 0:17:50.359
<v Speaker 2>shaping markets, finance, and geopolitics in the Asia Pacific. You

0:17:50.400 --> 0:17:54.520
<v Speaker 2>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:17:54.640 --> 0:17:57.639
<v Speaker 2>or anywhere else you listen. Join us again tomorrow for

0:17:57.800 --> 0:18:00.560
<v Speaker 2>insight on the market moves from Hong Kong Kong to

0:18:00.680 --> 0:18:05.440
<v Speaker 2>Singapore and Australia. I'm Doug Prisoner and this is Bloomberg