WEBVTT - Microsoft, Activision Clears US, Seeks UK Approval

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Doug Chrisner and I'm Brian Curtiz. Here are the

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<v Speaker 2>stories we're following today. US inflation cooled sharply last month.

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<v Speaker 2>It offers some new hope that the FED will soon

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<v Speaker 2>wrap up the most aggressive interest rate hiking campaign in decades,

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<v Speaker 2>but former New York FED President Bill Dudley says the data,

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<v Speaker 2>this latest data won't stop the FED from hiking in July.

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<v Speaker 3>They're looking at the totality of the data of the

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<v Speaker 3>last three months going to the July meeting, and the

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<v Speaker 3>reality is that commy is still doing quite well. The

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<v Speaker 3>economy really hasn't slowed down enough to make the FIT

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<v Speaker 3>confident that they're going to see that slack of all

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<v Speaker 3>air work that they want.

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<v Speaker 2>Fed officials will take into account upcoming readings on producer prices,

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<v Speaker 2>inflation expectations, and also retail sales before their next policy decision.

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<v Speaker 2>The FED does meet next on July twenty fifth and

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<v Speaker 2>twenty sixth.

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<v Speaker 4>Well, speaking today, if you look at the FED speak

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<v Speaker 4>it appears that a number of officials are poised to

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<v Speaker 4>resume those rate hikes. We heard today from the head

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<v Speaker 4>of the Richmond FED. He's Tom Barkin. He said that

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<v Speaker 4>growth in US consumer prices is still too quick, even

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<v Speaker 4>though it did slow in the month of June, and

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<v Speaker 4>mister Barkin went on to say, if you back off

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<v Speaker 4>too soon in terms of rate hikes, inflation will come

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<v Speaker 4>back strong. We also heard today from the head of

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<v Speaker 4>the Minneapolis Fed, Neil Kashgari. He said banks must be

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<v Speaker 4>prepared in case Fed officials need to tighten policy further.

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<v Speaker 2>If inflation proves more entrenched than expected, policy rights might

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<v Speaker 2>need to go higher, which could further reduce asset prices,

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<v Speaker 2>increasing pressure on banks.

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<v Speaker 4>That is Neil Kashkari, the head of the Minneapolis Fed.

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<v Speaker 4>He went on to say that increasing bank resilience could

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<v Speaker 4>help minimize risk if high inflation is persistent, and he

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<v Speaker 4>said supervisors could insure banks preparedness with high inflation stress

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<v Speaker 4>test to identify those banks most at risk.

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<v Speaker 2>Brian to Corporate News, Walt Disney has extended the contract

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<v Speaker 2>of CEO Bob Eiger for another two years. The story

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<v Speaker 2>from Bloomberg's Charlie Pellett.

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<v Speaker 1>It gives the longtime executive more time to implement his

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<v Speaker 1>turnaround and find a successor. Under the new arrangement, Iiger

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<v Speaker 1>will remain CEO through December thirty first of twenty twenty six.

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<v Speaker 1>The seventy two year old Iiger returned to run the

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<v Speaker 1>entertainment giant in November, after previously serving as CEO for

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<v Speaker 1>fifteen years. At the time, he was given a two

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<v Speaker 1>year deal expiring in December of twenty twenty four. Disney

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<v Speaker 1>made the announcement while Iger was attending the annual Allen

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<v Speaker 1>and Company conference in Sun Valley, Idaho. In New York,

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<v Speaker 1>Charlie Pellet Bloomberg Daybreak Asia, we.

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<v Speaker 4>Go next to the semiconductor's space and Vidia is said

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<v Speaker 4>to be in talks to join a list of investors

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<v Speaker 4>in the IPO of ARM Limited. Now you may know

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<v Speaker 4>that ARM is the British chip designer backed by Japan's SoftBank.

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<v Speaker 4>We have more from Bloomberg savon Men.

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<v Speaker 5>We're told the IPO backers will not be finalized until

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<v Speaker 5>the offering gets underway in the fall. The Financial Times

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<v Speaker 5>reported that in Video was seeking to invest at evaluation

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<v Speaker 5>of thirty five to forty billion dollars. That's lower than

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<v Speaker 5>the eighty billion that Soft Bank wants. Nvidia is a

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<v Speaker 5>longtime partner and client of ARM, and tried to acquire

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<v Speaker 5>it last year after the deal unraveled, soft Bank embarked

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<v Speaker 5>on plans for an arm IPO. The Tokyo firm bought

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<v Speaker 5>arm back in twenty sixteen with hopes of regaining its

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<v Speaker 5>own footing after losing billions of dollars on startup investments. Now,

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<v Speaker 5>SoftBank founder Masayoshi's son hopes the arm IPO can be

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<v Speaker 5>the largest ever by a chip company, and bringing in

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<v Speaker 5>anchor investors could be a big help. In Taipei, I'm

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<v Speaker 5>ivon Mann Bloomberg day Break Asia.

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<v Speaker 2>Chinese Premier Lee Chiang has met with senior executives from

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<v Speaker 2>the leading tech companies in the country. More from Bloomberg's

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<v Speaker 2>Juan Wong in Hong Kong.

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<v Speaker 6>This could be a signal that Beijing is ending is

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<v Speaker 6>crackdown on the tech industry. The meeting included executives from

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<v Speaker 6>Chinese tech firms Ali Baba, Bike Dance, and May Twan

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<v Speaker 6>CCTVs has premierly urged local governments to provide more support

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<v Speaker 6>to internet firms, calling them trailblazers of the era. He

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<v Speaker 6>also pushed the companies to support the real economy through innovation.

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<v Speaker 6>The hope is to bolster the Chinese economy without the

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<v Speaker 6>use of major stimulus and other examples. The Chinese government

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<v Speaker 6>recently urged banks to extend loan relief to developers, and

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<v Speaker 6>President Chi ching Ping called for more foreign cooperation in

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<v Speaker 6>areas including trade and investment in Hong Kong and Joanne

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<v Speaker 6>Wong Bloomberg Day Brick Asia.

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<v Speaker 2>I'm Brian Curtis along with Doug Christner and Doug In

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<v Speaker 2>addition to the premiers meeting, you also had the NDRC

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<v Speaker 2>praising tech companies yesterday, which is pretty unusual for that

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<v Speaker 2>sort of entity. It praised ten Cent, May Twan, Ali Baba,

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<v Speaker 2>and it shows that the policymakers now are looking at

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<v Speaker 2>other ways of stimulating the economy outside of just monetary

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<v Speaker 2>and fiscal support.

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<v Speaker 4>And look at the Nasdaq Golden Dragon China Index in

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<v Speaker 4>the US today, Brian jumping four percent and a call

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<v Speaker 4>from Goldman Sachs the firm strategists see China stocks as

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<v Speaker 4>investible right now. We've talked on this program about obvious

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<v Speaker 4>political risk, whether it's geopolitical or regulatory, along with the

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<v Speaker 4>loss of economic momentum in China. Now many in the

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<v Speaker 4>market have asked this question we have on this program

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<v Speaker 4>as well. Are Chinese stocks investible well? The answer, according

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<v Speaker 4>to Goldman right now is a clear yes, given the

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<v Speaker 4>fact that these risks essentially been priced in now. Goldman

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<v Speaker 4>seemed to plug in a few assumptions here over the

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<v Speaker 4>next twelve months. One is that the economy will grow

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<v Speaker 4>in real terms in terms of GDP at a rate

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<v Speaker 4>of around four point seven percent, and geopolitical tensions will

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<v Speaker 4>kind of assume a three year average, so no real surprises.

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<v Speaker 2>There are really a lot of doubters though these stocks

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<v Speaker 2>are down so much. We've often mentioned that companies like

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<v Speaker 2>ten Cent in Ali Baba, they are really not quite

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<v Speaker 2>the same companies they used to be, and ali Baba

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<v Speaker 2>for instance, still down even after the rallies of late,

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<v Speaker 2>still down about seventy percent, So you'll know that's what

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<v Speaker 2>makes a market. There will be people who will say

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<v Speaker 2>it's worth the risk. Others will say, we know what

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<v Speaker 2>the policymakers are like, and we know that they don't

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<v Speaker 2>support these types of Internet giants, the monsters like may

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<v Speaker 2>Twan like ten Cent and Ali Baba, so it'll be

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<v Speaker 2>interesting to watch that one. I wanted to make a

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<v Speaker 2>quick line here or comment on the inflation numbers, because

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<v Speaker 2>obviously we're leading off with that I like the line

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<v Speaker 2>in one of our stories, too early to pop the champagne,

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<v Speaker 2>but start chilling the bottle. The only thing is particularly

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<v Speaker 2>with us on this program talking to investors, is we

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<v Speaker 2>need to probe the bouncers to see if the guests

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<v Speaker 2>have already vibed too much. The Nastak one hundred to

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<v Speaker 2>that point, the Nasdaq one hundred, with the gains today

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<v Speaker 2>now up forty percent here to date.

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<v Speaker 4>I don't think you can argue with this move that

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<v Speaker 4>we had across the Treasury curve today at the short

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<v Speaker 4>end of twelve basis points to the downside at four

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<v Speaker 4>seventy four at the long end word three eighty five

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<v Speaker 4>right now, so the market's convinced that the FED is

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<v Speaker 4>nearly going to wrap up this project of tightening.

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<v Speaker 2>It depends I guess what happens with Core CPI four

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<v Speaker 2>point eight percent is down definitely from where we were

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<v Speaker 2>a year ago, but it's not down that much and

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<v Speaker 2>it's not down as much as the FED wants. So

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<v Speaker 2>although that three percent handle sounds great for headline CPI,

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<v Speaker 2>the four point eight percent on a year to date

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<v Speaker 2>number four Core is simply not good enough. Lots to

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<v Speaker 2>talk to our guests about and coming up as the

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<v Speaker 2>first guest on the program this morning. In a few minutes,

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<v Speaker 2>we'll be chatting with Ben Emmons, senior portfolio manager at

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<v Speaker 2>New Edge Wealth. Now it's time for Global News. NATO

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<v Speaker 2>has offered assurances of long term protections to Ukraine at

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<v Speaker 2>Baxter with Global News in the San Francisco nine to

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<v Speaker 2>sixty news room.

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<v Speaker 7>Head, Yeah, that's right, Brian. This is half of what

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<v Speaker 7>President vladimerz Alenski wanted and comes after him saying not

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<v Speaker 7>offering membership or a date thereof quote absurd. Now this

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<v Speaker 7>came before the meeting.

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<v Speaker 8>I want to discuss with our partners all these things

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<v Speaker 8>and the sword will will speak today and fight for this.

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<v Speaker 8>It's security guarantees for Ukraine on the way to NATO.

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<v Speaker 7>Now that one he did not get, but after meeting

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<v Speaker 7>with leaders, including US President Joe Biden, the.

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<v Speaker 8>Outcome of the need of summit and illness is very

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<v Speaker 8>much needed and.

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<v Speaker 9>Meaningful success for Ukraine.

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<v Speaker 8>And I'm grateful to all leaders in Needo countries who

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<v Speaker 8>are very practical and I'm presented its support.

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<v Speaker 7>A change of tone, how saying he feels after the

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<v Speaker 7>war is over, Ukraine will secure membership. Now, this is

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<v Speaker 7>the way President Biden sees it.

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<v Speaker 10>And one thing is ze Lensky understands now is that

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<v Speaker 10>whether or not he's in and they doo now, he's

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<v Speaker 10>not relevant as long as he has the commitment that

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<v Speaker 10>remember my talking about saying retreated like guarantee security along

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<v Speaker 10>with a number of other NATO countries of the day,

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<v Speaker 10>how we deal with for example, is long tournament. So

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<v Speaker 10>he's not concerned about.

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<v Speaker 7>That man now, NATO General Secretary Jan Stoltenberg.

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<v Speaker 1>Ukraine is not closer to NATO than ever before.

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<v Speaker 11>Allies reaffirmed that Ukraine will become a member of the Alliance.

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<v Speaker 7>Yes, saying Ukraine will get memberships so that Russian history

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<v Speaker 7>does not repeat itself. Overall, Today, airlines remains a bulwark

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<v Speaker 7>of global security instability, as has been for more than

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<v Speaker 7>seven decades. NATO is stronger, more energized, and yes, more

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<v Speaker 7>united than ever in its history. Meanwhile, the White House

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<v Speaker 7>has issued a statement condemning North Korea's test of a

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<v Speaker 7>long range ballistic missile, calling it a brazen violation of

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<v Speaker 7>multiple US Security Council a UN Security Council resolutions. Meanwhile,

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<v Speaker 7>North Korea calls a test a warning of shocking consequences

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<v Speaker 7>for spy planes flying near North Korea airspace. The ice

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<v Speaker 7>dBm are the most powerful in its arsenal. FBI director

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<v Speaker 7>Christopher Ray has told the congressional hearing today that it

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<v Speaker 7>will comply with a federal judges order banning it from

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<v Speaker 7>communicating with social media companies about misinformation, although Ray says

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<v Speaker 7>it may impact effectiveness of catching foreign adversaries.

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<v Speaker 12>The thousands of active investigations we now have into the

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<v Speaker 12>Chinese government's efforts to steal our most precious secrets, rob

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<v Speaker 12>our businesses of their ideas and innovation, and repress freedom

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<v Speaker 12>of speech right here in the United States.

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<v Speaker 7>And the US as hackers have breached a series of

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<v Speaker 7>email accounts linked to government agencies in the US and

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<v Speaker 7>Western Europe. The government Microsoft described the attackers as being

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<v Speaker 7>based in China. Global News powered by more than twenty

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<v Speaker 7>seven hundred journalists and analysts in over one hundred twenty countries.

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<v Speaker 7>In San Francisco, I'm Ed Baxter. This is Bloomberg.

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<v Speaker 4>Let's take a look now at what's going on these

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<v Speaker 4>days in market action with our guest Ben Emmons. He

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<v Speaker 4>joins us in the Bloomberg Interactive Broker studio in New York.

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<v Speaker 4>Ben is senior portfolio manager at New Edge Wealth. Thanks

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<v Speaker 4>for being with us. Let's begin by looking at the

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<v Speaker 4>inflation story here in the US. People were really celebrating

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<v Speaker 4>this reading on the CPI, both on the headline and

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<v Speaker 4>the core rate coming in a little bit below estimates.

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<v Speaker 4>Do you think it's enough to say that the Fed

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<v Speaker 4>is has succeeded, that it's won the fight, and okay,

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<v Speaker 4>we get another twenty five basis points this month, but

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<v Speaker 4>we're kind of going to be on pause indefinitely.

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<v Speaker 11>I don't think it definitely dug, but it is definitely

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<v Speaker 11>moving in the right direction.

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<v Speaker 9>And then so if you look at that month to

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<v Speaker 9>month change in.

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<v Speaker 11>The core services X housing number, that's particularly what you

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<v Speaker 11>want to look at because that's what the FED is

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<v Speaker 11>most worried about. That month of month was about point

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<v Speaker 11>two five percent, I believe, a lot lower than what

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<v Speaker 11>people had thought. And it's coming off about point five

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<v Speaker 11>early in this year. So it's in a nice to

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<v Speaker 11>send down. And I think if we continue to see

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<v Speaker 11>lower prints though in that particular item, which is really

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<v Speaker 11>where the heat of the economy currenty is right, it's

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<v Speaker 11>all in services and other related sort of ancillary services.

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<v Speaker 11>Then we'll read and tracked to see the inflation getting

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<v Speaker 11>from core infation back from four and change to readly

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<v Speaker 11>towards the fat's target. So it's good progress. The FAED

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<v Speaker 11>is basically being vindicated of what they did was the

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<v Speaker 11>right thing. And I think the bomb market is given

0:12:22.240 --> 0:12:24.520
<v Speaker 11>and fed a lot of credibility today by saying yes,

0:12:25.160 --> 0:12:26.880
<v Speaker 11>rags can now can go down in the future.

0:12:26.920 --> 0:12:28.439
<v Speaker 9>That's why I saw the movie yields.

0:12:28.960 --> 0:12:31.320
<v Speaker 11>On the other hand, they're not exactly done, and you know,

0:12:31.400 --> 0:12:34.400
<v Speaker 11>both Barking and Cascarry were quite clear about it. I

0:12:34.520 --> 0:12:37.520
<v Speaker 11>called it like they want to manage the expectations to

0:12:37.600 --> 0:12:39.199
<v Speaker 11>the finish line. They want to make sure that these

0:12:39.200 --> 0:12:42.439
<v Speaker 11>expectations are not going to suddenly become and get a

0:12:42.520 --> 0:12:45.400
<v Speaker 11>bit higher, right, And that's been the seventies problem, and

0:12:45.440 --> 0:12:49.240
<v Speaker 11>when they ease too quickly and inflation expectations started to

0:12:49.280 --> 0:12:49.959
<v Speaker 11>break up again.

0:12:50.720 --> 0:12:54.199
<v Speaker 2>So you know, there are more hawkish investors and also

0:12:54.280 --> 0:12:57.800
<v Speaker 2>even economists like our own analog who think that inflation

0:12:57.840 --> 0:13:00.720
<v Speaker 2>will tick back up on a technical base. Is because

0:13:01.240 --> 0:13:03.120
<v Speaker 2>of the big numbers that we saw a year ago.

0:13:03.200 --> 0:13:05.840
<v Speaker 2>Those will drop out and then you'll have on a

0:13:05.880 --> 0:13:10.320
<v Speaker 2>comparison basis a tick up and in any case, like

0:13:10.400 --> 0:13:13.079
<v Speaker 2>you said it, maybe that the FED wants to go

0:13:13.200 --> 0:13:15.160
<v Speaker 2>it wants to air on the side of too far.

0:13:15.960 --> 0:13:19.520
<v Speaker 2>So it's not really the all clear just yet, is

0:13:19.520 --> 0:13:19.920
<v Speaker 2>that right?

0:13:20.200 --> 0:13:21.120
<v Speaker 9>No, that's right, Brian.

0:13:21.240 --> 0:13:24.000
<v Speaker 11>I think that this tick up and inflation, that's it

0:13:24.120 --> 0:13:28.240
<v Speaker 11>is technical, but it's certainly something about perception of inflation

0:13:28.320 --> 0:13:30.600
<v Speaker 11>and right how people look at inflation and if it

0:13:30.640 --> 0:13:34.280
<v Speaker 11>continues to be something that's elevated and higher, you know,

0:13:34.400 --> 0:13:35.480
<v Speaker 11>that's the that's worry.

0:13:35.640 --> 0:13:38.679
<v Speaker 9>Like, if you don't lean more against that, then.

0:13:38.720 --> 0:13:42.760
<v Speaker 11>People have expectations that are basically and this is this

0:13:42.880 --> 0:13:45.160
<v Speaker 11>conference board number coming out in the next week and

0:13:45.160 --> 0:13:47.160
<v Speaker 11>a half is a really good sign of that that

0:13:47.160 --> 0:13:50.440
<v Speaker 11>that one year expectation is at over six percent. But

0:13:50.480 --> 0:13:53.720
<v Speaker 11>people still expecting really high inflation from here. You know,

0:13:53.880 --> 0:13:56.520
<v Speaker 11>as long as you don't manage that down further, you

0:13:56.600 --> 0:13:58.760
<v Speaker 11>will end up again in the future potential but again

0:13:58.840 --> 0:14:02.360
<v Speaker 11>higher inflation. So this is the Fat's not a conundrum.

0:14:02.400 --> 0:14:04.200
<v Speaker 11>It's not a dilemma. It's it's more like, this is

0:14:04.240 --> 0:14:07.160
<v Speaker 11>the risk that they're running. Therefore they stay the course

0:14:07.200 --> 0:14:09.720
<v Speaker 11>on this and this message of we need to bring

0:14:09.720 --> 0:14:12.520
<v Speaker 11>inflation really down to two percent, we can't be satisfied

0:14:12.520 --> 0:14:13.079
<v Speaker 11>at three percent.

0:14:13.200 --> 0:14:14.480
<v Speaker 4>So with the meeting at the end of the month,

0:14:14.559 --> 0:14:16.520
<v Speaker 4>is there a risk for Powell, for the FED chairman

0:14:16.600 --> 0:14:19.160
<v Speaker 4>that he sounds a little too dubbish he wants to

0:14:19.240 --> 0:14:22.000
<v Speaker 4>kind of adopt a more kind of a hawkish stance

0:14:22.120 --> 0:14:23.720
<v Speaker 4>just to keep the market on the back foot.

0:14:24.160 --> 0:14:24.320
<v Speaker 1>Yeah.

0:14:24.480 --> 0:14:28.000
<v Speaker 11>Probably, I think he will probably give that hockeyish tone.

0:14:28.200 --> 0:14:31.200
<v Speaker 11>I would think in a way he did recently too

0:14:31.240 --> 0:14:36.400
<v Speaker 11>in that testimony front of Congress, right and in the

0:14:36.400 --> 0:14:39.320
<v Speaker 11>following on the minutes, there's that similar tone in there.

0:14:39.400 --> 0:14:42.280
<v Speaker 11>So I think that he's wary of that. You know,

0:14:42.360 --> 0:14:44.040
<v Speaker 11>within the fet there's a group of people that are

0:14:44.040 --> 0:14:45.960
<v Speaker 11>really hawkish. You could tell that from the top loot.

0:14:46.000 --> 0:14:47.960
<v Speaker 11>There are people saying, no, we have to get the

0:14:48.000 --> 0:14:50.640
<v Speaker 11>six percent rate, that's much more of a better rate

0:14:50.680 --> 0:14:53.320
<v Speaker 11>to get inflation down. But he's more in the camp

0:14:53.320 --> 0:14:55.240
<v Speaker 11>of saying, we cannot really be of those who are

0:14:55.240 --> 0:14:57.600
<v Speaker 11>below where the median is because you know that that

0:14:57.600 --> 0:15:01.040
<v Speaker 11>would not be sufficient. Right, So keep that hockey still

0:15:01.200 --> 0:15:01.600
<v Speaker 11>for sure.

0:15:02.120 --> 0:15:04.520
<v Speaker 2>And in terms of the markets, because most of our

0:15:04.520 --> 0:15:07.120
<v Speaker 2>discussion has really been what the economy is doing with

0:15:07.240 --> 0:15:09.800
<v Speaker 2>the levels of inflation. But what about in terms of

0:15:09.800 --> 0:15:11.720
<v Speaker 2>the markets. I mentioned that, you know, we have to

0:15:11.760 --> 0:15:14.040
<v Speaker 2>see whether or not people have already you know, drank

0:15:14.040 --> 0:15:16.920
<v Speaker 2>from the till a bit too much. Markets have rallied

0:15:16.960 --> 0:15:19.080
<v Speaker 2>pretty sharply in the first half of the year.

0:15:20.040 --> 0:15:21.320
<v Speaker 9>Yeah, that's right, Brian.

0:15:21.520 --> 0:15:24.880
<v Speaker 11>There is a lot of anticipation, right, essentially build upon

0:15:24.960 --> 0:15:27.320
<v Speaker 11>what we saw today. You know, we got the confirmation

0:15:27.440 --> 0:15:30.440
<v Speaker 11>that we're we're in the live path down on inflation

0:15:30.760 --> 0:15:34.520
<v Speaker 11>for now, right, and and so yes, you could say

0:15:34.560 --> 0:15:37.960
<v Speaker 11>that at some point there's a fair bit of that overpriced, right,

0:15:38.000 --> 0:15:40.120
<v Speaker 11>it's just too far maybe pricing, and that's where the

0:15:40.120 --> 0:15:42.840
<v Speaker 11>correction will be. I say, take note of what's happening

0:15:42.880 --> 0:15:45.040
<v Speaker 11>with the dollar and the movement in the end. I

0:15:45.080 --> 0:15:47.040
<v Speaker 11>find that in the striking, you know, the Bank of

0:15:47.160 --> 0:15:49.640
<v Speaker 11>Japan will be at some point making a decision too.

0:15:50.120 --> 0:15:52.600
<v Speaker 11>Is that some of that anticipation everybody said like, once

0:15:52.640 --> 0:15:55.280
<v Speaker 11>the end gets really stronger, that will be the next

0:15:55.280 --> 0:15:58.080
<v Speaker 11>central bank that could start affecting markets, And that's I

0:15:58.080 --> 0:15:58.800
<v Speaker 11>think to be worse.

0:15:59.000 --> 0:16:00.880
<v Speaker 4>Yeah, we've had a couple of big days. I mean,

0:16:00.920 --> 0:16:04.120
<v Speaker 4>in terms of yen strength versus the dollar, we're sub

0:16:04.160 --> 0:16:07.600
<v Speaker 4>one thirty nine right now, and I'm wondering would you

0:16:07.640 --> 0:16:10.200
<v Speaker 4>be betting on some type of modification to the messaging

0:16:10.240 --> 0:16:13.120
<v Speaker 4>from the BOJ when they meet next just preparing the

0:16:13.160 --> 0:16:16.080
<v Speaker 4>markets for change and yield curve control.

0:16:16.040 --> 0:16:18.840
<v Speaker 11>Possibly because it's been going on now for some time.

0:16:19.280 --> 0:16:22.960
<v Speaker 11>The bottom line messages like we keep easying because of

0:16:23.080 --> 0:16:26.200
<v Speaker 11>you know, we still haven't reached our core rate for

0:16:26.280 --> 0:16:29.760
<v Speaker 11>two percent was what he said at in CenTra Ueita.

0:16:30.280 --> 0:16:33.400
<v Speaker 11>But within those minutes and those those policy discussions have

0:16:33.440 --> 0:16:35.920
<v Speaker 11>been coming out, there's been you know a little hints

0:16:35.960 --> 0:16:38.560
<v Speaker 11>here and there that they're willing to make it a

0:16:38.600 --> 0:16:42.360
<v Speaker 11>step in that policy and basically relax that why that

0:16:42.480 --> 0:16:45.320
<v Speaker 11>yukere of control actually you waded to an extent that

0:16:45.480 --> 0:16:48.280
<v Speaker 11>is too in CenTra. So I think they're getting much

0:16:48.320 --> 0:16:51.160
<v Speaker 11>closer to that decision, and that is a big deal

0:16:51.200 --> 0:16:54.040
<v Speaker 11>to markets, I think, because that is in a way

0:16:54.440 --> 0:16:56.800
<v Speaker 11>the last central bank that really is following the s

0:16:57.680 --> 0:17:00.840
<v Speaker 11>and because the end has been so we and people

0:17:00.920 --> 0:17:03.400
<v Speaker 11>borrowing yen, so it's actually being a sort of a

0:17:03.480 --> 0:17:06.480
<v Speaker 11>vehicle for risk taking. You know that that unminded that

0:17:06.560 --> 0:17:09.480
<v Speaker 11>yen carry idea, that's that's going to affect mark us negatively.

0:17:09.560 --> 0:17:11.160
<v Speaker 9>So I carefully watching.

0:17:11.000 --> 0:17:14.920
<v Speaker 2>That strengthen the end though, really over the past ten

0:17:15.000 --> 0:17:19.040
<v Speaker 2>days really feels like more dollar dollar weakness than yen strength.

0:17:19.040 --> 0:17:20.920
<v Speaker 2>I don't think the signals really have been that strong

0:17:20.960 --> 0:17:23.600
<v Speaker 2>out of the Boja, but if because also if you

0:17:23.640 --> 0:17:27.520
<v Speaker 2>look at the yuan, the Chinese REMMB, the CNH now

0:17:27.520 --> 0:17:30.560
<v Speaker 2>seven sixteen. A week ago, we were worried about hitting

0:17:30.600 --> 0:17:35.800
<v Speaker 2>seven thirty. So that that's but that does big A

0:17:35.800 --> 0:17:38.560
<v Speaker 2>little bit of discussion here quickly on China. We've had

0:17:38.560 --> 0:17:42.280
<v Speaker 2>a number of developments lately about non monetary and fiscal

0:17:42.320 --> 0:17:44.679
<v Speaker 2>ways of stimulating the economy. Do you like what you see?

0:17:45.440 --> 0:17:48.240
<v Speaker 11>Well, Brian, there's a lot of liquid he bumped into

0:17:48.240 --> 0:17:51.040
<v Speaker 11>the system now, right, the new loans that came out

0:17:51.080 --> 0:17:51.560
<v Speaker 11>the other night.

0:17:51.600 --> 0:17:52.679
<v Speaker 9>I mean that's more than.

0:17:52.520 --> 0:17:57.520
<v Speaker 11>Triples BBOC contas the exact liquidity you know, very quickly, right,

0:17:57.600 --> 0:18:01.600
<v Speaker 11>So it's a sort of a few there for yeah,

0:18:01.720 --> 0:18:04.160
<v Speaker 11>for biggest stimulus or at least a push. I think

0:18:04.160 --> 0:18:07.520
<v Speaker 11>these PMI data are coming out later in July. You know,

0:18:07.640 --> 0:18:10.520
<v Speaker 11>you could see some effects from that. The cacshin surfaces

0:18:10.520 --> 0:18:13.000
<v Speaker 11>PMI data was a little stronger than expected. That so

0:18:13.040 --> 0:18:15.439
<v Speaker 11>there's already I think some of that stimulus that they

0:18:15.480 --> 0:18:19.600
<v Speaker 11>did earlier in June is impacting data, and the Chinese

0:18:19.600 --> 0:18:21.200
<v Speaker 11>are very technical and very effective in it.

0:18:22.440 --> 0:18:25.280
<v Speaker 2>This is Bloomberg Daybreak Asia. Your morning brief on this

0:18:25.359 --> 0:18:28.400
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