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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Daybreak Asia podcast. I'm Brian Curtis

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Speaker 2: along with Doug Krisner. Join us each day for the

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Speaker 2: stories making news and moving markets in the Asia Pacific.

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Speaker 2: You can subscribe to the show anywhere you get your

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Speaker 2: podcasts and always on Bloomberg Radio, the Bloomberg Terminal, and

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Speaker 2: the Bloomberg Business app.

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Speaker 3: Well.

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Speaker 2: China has asked South Korea to maintain stable supply chains

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Speaker 2: and to be a trustworthy partner. We get more on

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Speaker 2: the story from Bloomberg's minmn Loo in Hong Kong.

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Speaker 4: Chinese Premier League Tang told South Kurrent President Yunsogil China

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Speaker 4: wants them two nations to be trustworthy neighbors. He said

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Speaker 4: each country should help the other to thrive. These comments

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Speaker 4: came as the countries began their first three way summit

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Speaker 4: with Japan since twenty nineteen. Lee said both sides should

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Speaker 4: avoid turning economic issues into political issues. The Chinese premier

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Speaker 4: also said Beijing welcome South Korean firms, including some Song

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Speaker 4: to expand in China. Beijing, Tokyo and Seoul are said

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Speaker 4: to be looking at several areas of cooperation including the

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Speaker 4: economy and trade in Hong Kong. I'm Min Min Loo

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Speaker 4: Bloomberg Radio.

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Speaker 2: Joining us now on the program is Richard McGregor, a

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Speaker 2: senior fellow for East Asia at the Loewi Institute, to

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Speaker 2: take a closer look at this story and perhaps talk

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Speaker 2: a little bit about that US delegation in Taiwan, and

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Speaker 2: also Jensen Huang. Richard, thank you so much for joining

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Speaker 2: us here on the program. So the news is tightening

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Speaker 2: a little bit on China. We had the G seven

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Speaker 2: finance chiefs criticizing Chinese trading practices, and also at the

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Speaker 2: end of last week the US moving to reimpose tariffs

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Speaker 2: on hundreds of Chinese goods, and now this trilateral summit.

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Speaker 2: What are the deliverables here for each of the countries?

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Speaker 2: Just if we could sum up briefly.

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Speaker 5: Well, I think the first of all, the medium is

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Speaker 5: the message in a way, member, as your reporter said,

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Speaker 5: this is the first time in four or five years,

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Speaker 5: and one of the fascinating things about it, of course,

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Speaker 5: is that the problem hasn't been China Japan, which is

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Speaker 5: usually the problem, but it's China, South Korea. They've had

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Speaker 5: a particular rocky patch and so the fact that they're

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Speaker 5: all able to meet now, I think tells you that

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Speaker 5: China wants to re engage with those countries. It's close neighbors,

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Speaker 5: both politically, but most importantly economically and technologically.

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Speaker 2: Is this a kinder and gentler Chinese regime at the moment, I.

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Speaker 5: Don't think there are very many, you know, I don't

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Speaker 5: think either the US nor China is kinder and gentler

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Speaker 5: at the moment. I think both countries are looking for leverage.

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Speaker 5: They're not looking for an off ramp for their competition.

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Speaker 5: And Japan and South Korea are vital, they're both US security,

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Speaker 5: longtime US security allies, and they both become very wary

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Speaker 5: of China politically and economically. Remember South Korea, we're underwent

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Speaker 5: pretty severe economic sanctions from China from twenty sixteen over

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Speaker 5: the installation of that anti missile shield in South Korea,

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Speaker 5: and so that really hurt relations. And then of course

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Speaker 5: the President Yuan made some comments about Taiwan which truly

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Speaker 5: angered China, and so China has I think it has

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Speaker 5: found its influence and its economic role in both South

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Speaker 5: Korea and Japan two degree diminished. And also, of course

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Speaker 5: the US wants South Korea and Japan to cooperate in

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Speaker 5: its own sanctions against China on semiconductors.

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Speaker 6: And the like.

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Speaker 2: Yeah, so we see the US definitely exerting pressure on

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Speaker 2: the G seven, and you know that's been tough in

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Speaker 2: the EUS, tough in policy to a certain degree on China.

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Speaker 2: I'm curious how much pressure you think the US is

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Speaker 2: applying to its close partners in Japan in South Korea

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Speaker 2: to do more of the same against China.

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Speaker 5: Well, I think an exceptional amount of pressure. But in

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Speaker 5: some cases, a country like Japan is applying its own pressure.

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Speaker 5: You know. So Japan, for example, you know, which you know,

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Speaker 5: pioneer successful industry policy back in the seventies and eight

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Speaker 5: nineteen seventies and eighties. It really wants Europe to come

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Speaker 5: on board with the US in trying to constrain China

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Speaker 5: in some respects. So, yes, US is putting pressure on,

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Speaker 5: but in some respects are Japan and to a lesser extent,

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Speaker 5: but to some extent South Korea they're willing to work

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Speaker 5: with the US. I just think it depends on how

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Speaker 5: far it goes in the ext and the detail.

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Speaker 2: Really, let's talk a little bit about the delegation of

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Speaker 2: US lawmakers that are in Taiwan now, and also Jensen

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Speaker 2: Wong of Nvidia. These trips are planned out, you know,

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Speaker 2: fairly far in advance.

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Speaker 3: I would imagine.

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Speaker 2: Is there much significance in Jensen Huang going to Taiwan

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Speaker 2: at this time?

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Speaker 5: Yeah, I mean you'll struggle to get a really detailed

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Speaker 5: answer from me about the detail of mister Wang's trip

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Speaker 5: about exactly what he'll be doing. But I just think

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Speaker 5: it's a reminder that Taiwan is the global center of

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Speaker 5: advanced semiconductor manufacturing. Even with building a couple of plants

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Speaker 5: in Kyushu and Japan, constructing one in Arizona and Germany,

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Speaker 5: the importance of Taiwan is not diminished. And yes, Taiwan

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Speaker 5: has been willing to put TARSMC factories elsewhere, but TSMC

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Speaker 5: has made sure to keep its most advanced chips manufacturing

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Speaker 5: in Taiwan itself. So I mean, in that respect, all

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Speaker 5: leeds road to lead to Taiwan, and it's no surprise

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Speaker 5: mister Wong would be going there.

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Speaker 3: Yeah.

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Speaker 2: What did you make of the Bloomberg story last week?

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Speaker 2: And it was later confirmed to a certain degree by

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Speaker 2: ministers in Taiwan about the ability for TSMC and ASML

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Speaker 2: to you know, have a kill switch on the advanced

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Speaker 2: semiconductor manufacturing equipment in Taiwan.

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Speaker 3: Gosh a kill switch.

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Speaker 5: Well, one wonders if they're you know, heaven forbid, it

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Speaker 5: won't happen that there were a conflict, military conflict involving

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Speaker 5: Taiwan and in Taiwan, what would happen to TSMC facilities.

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Speaker 5: You know, you hear some wild stories is that they

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Speaker 5: would be bombed by anti China forces to prevent China

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Speaker 5: set of benefiting from them. Then there's the issue whether

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Speaker 5: you need to do that at all, because of all

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Speaker 5: the value of TSMC is basically inside the engineer's heads,

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Speaker 5: and that's the value, not just the sort of hard

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Speaker 5: ware that they've built, is the updating of it. But yeah,

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Speaker 5: I think I don't think China. China's interest in Taiwan

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Speaker 5: is about its semiconductors. But if they were to take

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Speaker 5: over the EYE, and then that is obviously a tremendous

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Speaker 5: price they would seek to leverage.

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Speaker 2: Sometimes when we mention to people who only look at

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Speaker 2: this issue from AFAR, they're surprised to hear that for China,

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Speaker 2: Taiwan is issue number one. It's a bigger issue, even

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Speaker 2: in some ways than global trade, because it it goes

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Speaker 2: to the reuniting of China. And you spent a lot

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Speaker 2: of time, Richard, in Beijing, and you've covered China for gosh,

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Speaker 2: since we met back in the eighties, so it's been

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Speaker 2: a long time. Is Taiwan any less important now or

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Speaker 2: is it more important now than it used to be?

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Speaker 5: No, it's more important than Brian. You're aging us both,

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Speaker 5: but we actually met and worked together in Taiwan in

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Speaker 5: the late nineteen eighties, and I think it's more important.

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Speaker 5: And it's more important in this respect is because once

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Speaker 5: China covered at Taiwan, but they did not have the

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Speaker 5: military or political capability to move on the issue. That's

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Speaker 5: all change now and you look at the you know,

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Speaker 5: the blockade that China imposed on the island after mister

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Speaker 5: Laichinder's inauguration, and they did that rapidly. China resort would

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Speaker 5: always wanted to have done that, but they didn't have

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Speaker 5: the capability to do it. Now they do. They have

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Speaker 5: the military capability. They're military dominant, militarily dominant in that

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Speaker 5: era area. And I think yes, so it's more important

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Speaker 5: because now they can act on what they've always wanted

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Speaker 5: to act on.

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Speaker 2: We had Einer Tonguan from the Taihu Institute on the

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Speaker 2: program late last week, and he tends to lean pro

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Speaker 2: China in some ways, but he was saying that a

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Speaker 2: blockade for China wouldn't make any sense because it would

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Speaker 2: also disrupt its own trade to such a degree that

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Speaker 2: it would be too punitive.

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Speaker 5: Well, that's right, that's why many of the options that

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Speaker 5: China has, none of them are easy. And of course

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Speaker 5: you can do a blockade. You know, we might wake

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Speaker 5: up one morning and China is to clear Taiwan part

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Speaker 5: of its custom zone. But you know, the US could

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Speaker 5: do a counter block day against China against its energy assets,

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Speaker 5: for example, and other raw materials going through the Malacca

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Speaker 5: Straits and elsewhere, so that would hurt everybody as well.

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Speaker 5: But you know, it's not only China has options. Others

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Speaker 5: have options. I think China's problem is that it's been

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Speaker 5: so bad at winning any support on the ground amongst

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Speaker 5: the Taiwanese people that they've only left themselves bad options.

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Speaker 5: I mean, all she needs to do is to get

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Speaker 5: Taiwan to agreed to negotiate, but public opinion and political

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Speaker 5: parties in China won't do that until China gives them

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Speaker 5: some incentive too, rather than simply threatening them.

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Speaker 2: All right, Richard, unfortunately out of time, but always a pleasure.

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Speaker 3: Good to talk with you again.

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Speaker 2: Richard McGregor is Senior Fellow for East Asia at the

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Speaker 2: Lowi Institute. Well, it was about ten years ago that

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Speaker 2: President Shijen Fin gave a very important speech, a pivotal speech.

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Speaker 2: It would set China on course to dominate the electric

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Speaker 2: vehicle industry around the world. And joining us now is

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Speaker 2: Linda Liu Bloomberg China Cars Reporter to talk about the

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Speaker 2: extent to which Linda China has achieved that dream.

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Speaker 3: Are they there on the precipice.

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Speaker 6: Yeah, you'll be on the money, because ten years ago

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Speaker 6: on the auto industry and China looked very different to

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Speaker 6: what it is today. At the time, China sold fewer

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Speaker 6: than eighty thousand eeds and hybrids, exported about five hundred

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Speaker 6: thousand cars, and that the mestic market was dominated by

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Speaker 6: international manufacturers like Volkswagen and the messic brands are perceived

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Speaker 6: as being inferior. And so fast forward to ten years

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Speaker 6: we've seen come to be the world's largest market for

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Speaker 6: autos and EV's they've overtook Japan as the world's largest exporter,

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Speaker 6: so they've come a really long way.

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Speaker 2: Well, it's interesting that the challenges at home are not

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Speaker 2: so great for continued EV dominance in China, but challenges

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Speaker 2: abroad are getting a lot tougher. Now, how much tougher

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Speaker 2: is it going to be for China to build on

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Speaker 2: some of those gains outside the country or will it

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Speaker 2: mainly only be difficult in the US and Europe.

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Speaker 6: Yeah, it's really interesting because now that China has built

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Speaker 6: up its domestic autos and EV supply chain, it's looking

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Speaker 6: to expand over broad abroad. But in the process of that,

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Speaker 6: it's actually going to kind of step on the toes

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Speaker 6: of some entrenched auto industries in other countries because essentially,

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Speaker 6: with the rise of evs, it's going to disrupt traditional

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Speaker 6: auto supply chains that employ millions of people. So you've

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Speaker 6: seen the US, you know, already called droping the import

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Speaker 6: tariffs on ebs, and the EU is about to announce

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Speaker 6: results from an anti subsidy investigation also into Chinese ebs.

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Speaker 6: We've also seen action from Brazil where they remove a

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Speaker 6: tax break for EV imports. So these countries are really

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Speaker 6: putting up trade barriers, and that's going to be a

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Speaker 6: challenge for Chinese carmakers who are looking to expand internationally.

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Speaker 2: So China looks to be hitting back, with the China

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Speaker 2: Chamber of Commerce talking about raising import tariffs on cars

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Speaker 2: with large engines. How much would that hurt some of

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Speaker 2: the European automakers and to a lesser degree perhaps American

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Speaker 2: car makers selling there.

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Speaker 6: Yeah, for the potential hike of this import tariff on

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Speaker 6: large engine kaza, China has hinted that and they do

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Speaker 6: well mostly hit European brands like Mercedes and BMW because

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Speaker 6: they're the top importers into China right now. And interestingly,

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Speaker 6: the largest importer of autoism too China last year was

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Speaker 6: actually Toyota. So we're gonna have to see how this tariff,

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Speaker 6: if it is raceed, will play out. Because Japan they

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Speaker 6: have become collateral damage. American car makers actually don't import

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Speaker 6: that many cars into China any more, so this action,

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Speaker 6: if it goes ahead, will probably mostly impact European automakers.

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Speaker 2: I think a lot of listeners would be curious where

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Speaker 2: China's strongest markets are outside of Europe. Let's say, for instance,

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Speaker 2: in South America or on the African continent. Where is

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Speaker 2: China having the most success in moving its cars abroad.

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Speaker 6: China is actually growing its exports in different parts of

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Speaker 6: the world. Like you said, South America is seeing a

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Speaker 6: really big increase looking at countries like Brazil, Mexico, China

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Speaker 6: is doing a lot of exporting their emerging markets is

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Speaker 6: where China performs the best because they tend to be

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Speaker 6: countries that have more friendly relations with China. So we're

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Speaker 6: also seeing healthy growth of Chinese supply chains expanding as

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Speaker 6: well as exporting into Southeast Asia, Africa, like you said,

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Speaker 6: essentially places where there aren't as many antagonism and trade

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Speaker 6: barriers against China.

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Speaker 2: One of the other interesting areas for a Chinese ev

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Speaker 2: makers is at the luxury end. We know that BYD

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Speaker 2: is now producing more luxury models, Zeker is another one,

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Speaker 2: Neo is another one. Is that an area for growth

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Speaker 2: for the Chinese car makers, let's say over the next decade.

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Speaker 6: Yeah, the Chinese carmakers definitely want to raise the average

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Speaker 6: spelling price of their vehicles, and going upmarket luxury is

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Speaker 6: a sure fire way to do that. One of the

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Speaker 6: challenges is really around brand building, which is something that

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Speaker 6: not just automakers, but Chinese companies is really having I guess,

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Speaker 6: to learn how to do and trying to cultivate their

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Speaker 6: own brand. Looking at markets like Europe, customers there actually

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Speaker 6: have very strong brand loyalty. You know, some families may

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Speaker 6: be driving Volks Fagins for generations. So for Chinese automakers

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Speaker 6: are going up markets trying to build their brand, they

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Speaker 6: really have to take the time and investment into doing that.

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Speaker 2: All right, Linda, thanks so much for joining us. Always

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Speaker 2: interesting to catch up on the latest developments with Chinese automakers.

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Speaker 2: Linda lu has been with this Bloomberg China Cars reporter.

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Speaker 5: Well.

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Speaker 2: Joining us now in our studios right here in Hong

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Speaker 2: Kong for discussion markets is David job, who is Global

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Speaker 2: Market Strategies for the Asia Pacific at Invesco. David, thanks

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Speaker 2: very much. So we've run through some of the top

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Speaker 2: stories there. It's an interesting environment, kind of bullish, I guess,

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Speaker 2: coming off of some of the trading last week, particularly

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Speaker 2: tied to AI and Nvidia. What is chief of mind

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Speaker 2: for you as we start this week.

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Speaker 1: Well, I think that there are a few things going on.

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Speaker 7: I think that there continues to be questions as to

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Speaker 7: if this AI trend has more legs run I think so.

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Speaker 7: I think that the earnings guidance given by Nvidia and

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Speaker 7: also other related AI manufacturers and AI apps, it shows

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Speaker 7: that companies are spending money on capital expenditures on their

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Speaker 7: AI development. And I think that you know, whether this

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Speaker 7: has the same effect on the economy as said the

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Speaker 7: Internet did you know twenty thirty years ago, is yet

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Speaker 7: to be seen. It's probably not going to be as significant.

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Speaker 7: But I think that the AI development is a very

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Speaker 7: very important technological breaks that that should be a very

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Speaker 7: strong investment growth trend over the coming years.

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Speaker 2: So let's talk about how the tentacles of this trend

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Speaker 2: extend out into the marketplace. So if you're a believer

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Speaker 2: in AI, and you need only look at Nvidia's earnings

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Speaker 2: to show that there are a lot of people who

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Speaker 2: are believers, and that's not so much on bidding up

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Speaker 2: the stock side, but in the actual business side. So

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Speaker 2: if you think about those tentacles and how they spread,

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Speaker 2: where do they go?

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Speaker 7: Well, I think that there's both downstream opportunities for investments

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Speaker 7: such as you know, you know, AI requires a lot

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Speaker 7: of energy, so it requires also a lot of precious metals,

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Speaker 7: industrial metals that go into manufacturing a lot of the

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Speaker 7: semiconductor chips. Then you can go upstream in terms of

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Speaker 7: investing in some of the applications that the AI technology

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Speaker 7: runs on. So I think that there's a significant number

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Speaker 7: of opportunities. We look at other places that have perhaps

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Speaker 7: more interesting pockets of opportunity. In places like Korea and Taiwan,

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Speaker 7: the stocks there and the indexes there are more weighted

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Speaker 7: towards AI related technology. So I think that for those

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Speaker 7: that have felt that they may have missed out on

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Speaker 7: the single stock run in in the US or other places,

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Speaker 7: I think that investing in the the COSTP or the

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Speaker 7: Taiwan index could could be an interesting opportunity.

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Speaker 2: We had an interesting line out of the Stock Exchange

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Speaker 2: Operator in South Korea urging directors of listed companies to

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Speaker 2: play a more active role in enhancing shareholder returns. When

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Speaker 2: you talk to people about Japan and about South Korea,

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Speaker 2: they sometimes talk about corporate governance improving. Uh is that

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Speaker 2: part of your of your approach to those markets as

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Speaker 2: well well?

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Speaker 7: I think that corporate governance are improving is somewhat of

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Speaker 7: a subjective and relative term. But what's what's interesting there

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Speaker 7: is that companies are being encouraged very meaningfully to increase

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Speaker 7: shareholder you knows, and to increase shareholder maximize shareholder value there.

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Speaker 7: We haven't seen this development for a very long time,

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Speaker 7: and it's it's it's having a pretty significant impact I

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Speaker 7: think overall on Japanese stocks, both in terms of seeing

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Speaker 7: the valuation starting to really ramp up little known as.

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Speaker 1: A Korea UH and and what's going on there.

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Speaker 7: And I think that similar efforts to maximized shareholder valued

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Speaker 7: is also starting to develop.

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Speaker 1: So I think that these.

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Speaker 7: Places you know are are are barreling down the right road.

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Speaker 2: Yeah, some of these areas would include better treatment of

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Speaker 2: minority shareholders, that's one thing. Also buybacks, which you mentioned,

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Speaker 2: and maybe raising dividends. So among those three things, you know,

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Speaker 2: is anything that stands out? And is there anything else

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Speaker 2: in this general area that companies are doing that you

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Speaker 2: know are appealing to investors?

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Speaker 7: Well, I think that these places in the past we

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Speaker 7: haven't seen activist shareholders. I think maybe from a cultural standpoint,

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Speaker 7: and in North Asia it's uh, you know, investors have

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Speaker 7: tended to be very passive when it comes to directing UH.

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Speaker 7: Corporate governance initiatives. But I think that's starting to change,

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Speaker 7: and I think the change is good and and I

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Speaker 7: think that we can continue to expect further you know developments.

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Speaker 4: Uh.

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Speaker 3: Yeah, that's a very good point.

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Speaker 2: It's something I left out was, uh, the embracing of

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Speaker 2: activist investors who who really take a look at management

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Speaker 2: and try to get better management, better decisions out of

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Speaker 2: the board and.

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Speaker 3: The management on policy.

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Speaker 2: So I think that's it's a good point to make

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Speaker 2: now in terms of of the big macro set up,

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Speaker 2: we know that the FED looks positioned now for higher

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Speaker 2: interest rates for longer. Do you expect that to change

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Speaker 2: anytime soon?

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Speaker 7: Well, I think that that continues to be the million

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Speaker 7: dollar question. I think even among the FED, we continue

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Speaker 7: to see somewhat conflicting signals. I think it's it's very

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Speaker 7: clear that you know, Charity J. Powell, perhaps it's a

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Speaker 7: little more dubbish when it comes to instituting the first

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Speaker 7: rate cut compared to other members of the f MC,

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Speaker 7: which was you know, very exemplified in the recent FMC minute.

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Speaker 7: So I think it's some it continues to be up

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Speaker 7: for debate.

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Speaker 3: Yeah.

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Speaker 2: I spoke with an investor in the last Hour, who

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Speaker 2: was particularly nervous that the FED might want to kind

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Speaker 2: of further brandish it's it's sort of toughness and its

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Speaker 2: ability to fight inflation, to once growth starts to weaken,

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Speaker 2: to continue with this posture of hire for longer. Is

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Speaker 2: that something that you fear as well?

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Speaker 3: Well.

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Speaker 7: I think that many strategist economists were were wrong in

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Speaker 7: thinking that the US was going to hit a you know,

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Speaker 7: a hard landing last year. We certainly didn't see it.

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Speaker 7: We're not seeing it this year so far. I think

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Speaker 7: that US growth is certainly starting to modify. It' starting

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Speaker 7: to to slow down a bit, and many signals and

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Speaker 7: I think the US is really hitting kind of this.

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Speaker 1: Two two growth spurt, you know, with the lower.

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Speaker 2: Incomes a k recovery right where the wealthy classes are

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Speaker 2: doing fine, but the lower income strata not so.

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Speaker 3: Fine, That's right.

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Speaker 7: So I think that if you're the FED, you're looking

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Speaker 7: at this and and so your hands are a bit

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Speaker 7: tied and in terms of im trying to assess what

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Speaker 7: the economic growth landscape really is. And I think that

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Speaker 7: going forward, you know, US growth is going to stabilize

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Speaker 7: a bit. But I think at the at the end

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Speaker 7: of this year that we could start to see a

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Speaker 7: bit of a reacceleration.

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Speaker 2: And some investors that I talked to believe that generally speaking,

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Speaker 2: the market is not discounting a number of areas, particularly geopolitics,

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Speaker 2: the two wars, that you could be a third war

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Speaker 2: if you talk about a trade war between the US

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Speaker 2: and China, that there are still a lot of risks

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Speaker 2: out there that perhaps need to be better discounted.

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Speaker 7: Oh indeed, I think that you know, we get questions

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Speaker 7: about the US presidential election and the risks there. I

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Speaker 7: don't worry about that. What I do worry about are

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Speaker 7: other geopolitical risks. I think, what's going on. You know,

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Speaker 7: we haven't seen wars in Europe and the Middle East

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Speaker 7: at the same time for a very long time, and

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Speaker 7: so I think that that's that's perhaps one of the

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Speaker 7: risks that that needs to be better appreciated.

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Speaker 2: Do you worry that whoever becomes president at some point

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Speaker 2: they're going to be facing this notion that they need

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Speaker 2: to raise revenue, that the interest expenses are are hurting

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Speaker 2: a lot, particularly given the high level.

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Speaker 3: Of interest rates.

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Speaker 2: And you know, I mean if president if form President

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Speaker 2: Trump wins, you're probably not going to see higher taxes,

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Speaker 2: but you might if Joe Biden wins.

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Speaker 7: Well, I think that the US debt burden has certainly

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Speaker 7: been on the minds of many, and you know, a

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Speaker 7: significant portion of the US debt was really racked up

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Speaker 7: over the past six years, you know, But ultimately, the

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Speaker 7: US government is one of the biggest holders of debt.

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Speaker 1: Institutions are holder of US debt.

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Speaker 7: I so I don't really see that becoming a significant issue,

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Speaker 7: although the higher interest payments certainly is is mind boggling.

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Speaker 7: I think that, you know, there's more payments and more

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Speaker 7: capital devoted to interest payments than defense spending in the US.

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Speaker 7: But I think ultimately, if the FED is going to

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Speaker 7: cut rates, and we still expect them to do so,

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Speaker 7: perhaps at the end of this year, that should provide

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Speaker 7: some relief.

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Speaker 2: Okay, I give you the sixty second elevator pitch. What

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Speaker 2: is your best investment idea at the moment?

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Speaker 7: I still really like emerging market equities and European equities.

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Speaker 7: In Europe, European equities are relatively cheap, and both the

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Speaker 7: French and the German economy you're starting to improve. I

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Speaker 7: also really like non investment grade quality debt, things like

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Speaker 7: you know, senior loans, bank loans, perhaps things like private credit.

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Speaker 7: We continue to be an environment where we're being exposed

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Speaker 7: to high interest rates.

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Speaker 2: Makes sense you like private credit rather than just going

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Speaker 2: into the public markets.

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Speaker 7: Well, I think I think that given where spreads are

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Speaker 7: right now, between HYYLD spreads, it doesn't make sense to

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Speaker 7: take that risk there. But I think that private credits

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Speaker 7: continue to be you know, we continue to see very

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Speaker 7: juicy spreads and I think that this is this is

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Speaker 7: a diversifier to one's portfolio.

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Speaker 3: Okay, well, David, thanks very much.

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Speaker 2: Monday morning. You got to hit the ground running. You

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Speaker 2: come in here and get nine minutes of questions on

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Speaker 2: every front. Thank you for joining us in our studios

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Speaker 2: on a Monday morning.

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Speaker 3: I mean, these guys eat it up. Don't worry that

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Speaker 3: this is what they do for a living. David Chow's

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Speaker 3: been with us from Invesco.

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Speaker 2: This is the Bloomberg Daybreak Asia podcast, bringing you the

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Speaker 2: stories making news and moving markets in the Asia Pacific.

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Speaker 2: Visit the Bloomberg Podcast channel on YouTube to get more

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Speaker 2: episodes of this and other shows from Bloomberg. Subscribe to

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Speaker 2: the podcast on Apple, Spotify, or anywhere else you listen

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Speaker 2: and always on Bloomberg Radio, the Bloomberg Terminal, and the

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Speaker 2: Bloomberg Business app.