WEBVTT - China Sets Conservative Growth Target, NPC Underway

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<v Speaker 1>This is Bloomberg Daybreak Asia for this Monday, March sixth

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<v Speaker 1>in Hong Kong, Sunday March fifth in New York and

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<v Speaker 1>coming up today. China sets a modest GDP growth target

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<v Speaker 1>and leadership will target disorderly expansion in the property sector.

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<v Speaker 1>Premiere Leka Sean calls for a whole nation strategy to

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<v Speaker 1>edge out America in basic science and advanced technology and

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<v Speaker 1>soft banks. Chip Unit arm Limited is reportedly seeking to

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<v Speaker 1>raise at least eight billion dollars in a US highpo.

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<v Speaker 1>China will boost defense budget by over seven percent. Also

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<v Speaker 1>says reunification of Taiwan is still a priority. EU Commission

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<v Speaker 1>president calls for a separate entity to investigate Russia war crimes.

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<v Speaker 1>I'm at Baxter with Global News. That's all straight Ahead

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<v Speaker 1>on Bloomberg Daybreak Asia, the business news you need to

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<v Speaker 1>start your day in just one fifteen minute podcast available

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<v Speaker 1>on Apple, Spotify, the Bloomberg Business App and everywhere you

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<v Speaker 1>get podcasts. Good morning, I'm Brian Curtis and I'm Dog Prisoner.

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<v Speaker 1>Here are the stories we're following today. China has set

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<v Speaker 1>a modest economic growth target of around five percent for

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<v Speaker 1>the year. Economists had expected a more ambitious target above

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<v Speaker 1>five percent following a rebound in consumer and business spending

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<v Speaker 1>of late. Premierly Kat Chang said that boosting domestic demand

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<v Speaker 1>would be the government's top priority. He also talked about

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<v Speaker 1>creating up to twelve million new urban jobs. China's new

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<v Speaker 1>national budget also supports fiscal support to be somewhat restrained.

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<v Speaker 1>The budget deficit goal was set at three percent of

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<v Speaker 1>GDP for the year. That's up from last year's two

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<v Speaker 1>point eight percent, and the higher target will mean more spending,

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<v Speaker 1>but it is below some estimates. In the meantime, the

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<v Speaker 1>CPI target was set around three percent for twenty twenty three,

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<v Speaker 1>the same as last year, and Premierly said that inflation

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<v Speaker 1>will remain a challenge. Didn't we have also a phase

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<v Speaker 1>of global search of inflation. We strive to ensure market

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<v Speaker 1>supply and staple prices, particularly those of food and energy,

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<v Speaker 1>and last year global inflation rocket to a rapport high,

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<v Speaker 1>and it's not easy for us to maintain a super

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<v Speaker 1>price in terms of our CPI. On China's property market,

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<v Speaker 1>Lee hinted that Beijing would continue to support housing while

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<v Speaker 1>also regulating the sector more tightly. He said the Chinese

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<v Speaker 1>government wants to prevent an unregulated expansion of the market.

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<v Speaker 1>Well more news coming out of the NPC China is

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<v Speaker 1>pledging massive resources in order to achieve self reliance in technology.

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<v Speaker 1>More from Bloomberg's Evan Men. Chinese Premier Leka Chang said

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<v Speaker 1>once again, it's a whole nation strategy. He spoke at

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<v Speaker 1>the star of the Annual National People's Congress on Sunday.

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<v Speaker 1>The strategy aims to edge out the US on basic

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<v Speaker 1>scientific research and technologies. Those sectors range from advanced intelligence

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<v Speaker 1>to space. His remarks come days after the Biden administration

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<v Speaker 1>blacklisted more Chinese companies in the chip and genome industries. Now,

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<v Speaker 1>the MPC pledge shows a fierce determination by China to

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<v Speaker 1>fight back, an to get the upper hand and the

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<v Speaker 1>tech war with United States in Hong Kong. I'm Ivan

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<v Speaker 1>Mahn Bloomberg Daybreak Asia and with more on one of

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<v Speaker 1>the lines in that story. The Biden administration is nearing

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<v Speaker 1>completion of an executive order that would restrict investments by

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<v Speaker 1>US companies in parts of the Chinese economy. Let's get

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<v Speaker 1>the story from Bloomberg Susannah Palmer. We're hearing this would

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<v Speaker 1>include advanced to technologies that could enhance China's military and

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<v Speaker 1>intelligence capabilities. According to Congress reports obtained by Bloomberg, the

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<v Speaker 1>effort is at an advanced stage, with President Joe Biden

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<v Speaker 1>prepared to request funding for it in his March ninth

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<v Speaker 1>fiscal twenty twenty four budget. The order would add to

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<v Speaker 1>the administration's toolkit to address concerns about China's technological advances.

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<v Speaker 1>Susanna Palmer Bloomberg Daybreak Asia SoftBank semiconductor unit ARM Limited

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<v Speaker 1>is reportedly seeking to raise at least eight billion dollars

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<v Speaker 1>through a US base IPO. We have that story from Bloomberg.

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<v Speaker 1>Sanabelle Jewelers, the British chip designer, is expected to confidentially

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<v Speaker 1>submit paperwork for its IPO in late April. That's according

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<v Speaker 1>to Reuters. The reported listing size would make ARM one

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<v Speaker 1>of the biggest IPOs in the US in years. We

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<v Speaker 1>reported last week the Bankers had pitched evaluation of between

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<v Speaker 1>thirty to seventy billion dollars for the company. Last week,

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<v Speaker 1>ARM confirmed plans to debut solely in the US, rejecting

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<v Speaker 1>calls from the UK government for a duel listing in

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<v Speaker 1>its home market. Routers says Goldman Sachs, JB. Morgan Chase, Barclays,

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<v Speaker 1>and Mizooho Financial are expected to be the lead underwriters

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<v Speaker 1>for the IPO in Hong Kong. I'm Annabel Rulers, Bloomberg

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<v Speaker 1>Daybreak Asia. Well. Over the week in San Francisco, FED

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<v Speaker 1>President Mary Daly said more rate hikes will be needed

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<v Speaker 1>to cool inflation. Daily said that inflation remains high in

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<v Speaker 1>each sector, in goods, in housing, and in other services.

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<v Speaker 1>Here's Daily speaking Saturday at Princeton University in New Jersey.

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<v Speaker 1>In order to put this episode of inflation high inflation

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<v Speaker 1>behind us, further policy tightening maintained for a longer period

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<v Speaker 1>will likely be necessary, But I can't say this strongly enough.

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<v Speaker 1>Restoring price stability is our mandate and it's actually what

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<v Speaker 1>American people expect us to do, so we remain as

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<v Speaker 1>an FOMC resolute in achieving this goal. Daily added that

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<v Speaker 1>the bumping nature of the incoming data paints an unclear

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<v Speaker 1>picture for disinflation momentum. In a call with reporters, Daily

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<v Speaker 1>repeated that she supports raising rates to somewhere between five

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<v Speaker 1>and five and a half percent. Back to the NPC

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<v Speaker 1>dug the narrative it really has really bounced around a bit.

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<v Speaker 1>About a month or two ago, we were waiting on

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<v Speaker 1>the NPC to hear about stimulus for getting the economy going.

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<v Speaker 1>Then when President She spoke about this reorganization that would

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<v Speaker 1>be intense, the narrative kind of switched to, well, it's

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<v Speaker 1>going to be party operatives running all the institutions and

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<v Speaker 1>big companies, and that seemed a negative. Then analysts started

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<v Speaker 1>pouring cold water on that as too negative an angle,

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<v Speaker 1>saying it's simplistic. It'll actually be advantageous to have people

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<v Speaker 1>close to She managing these big institutions. And you mentioned

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<v Speaker 1>Shuley's angle that's back to the low target means more

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<v Speaker 1>regulation is coming, and that kind of fits that, that

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<v Speaker 1>assertion that the party is taking more power here, and

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<v Speaker 1>it kind of goes to the latter point. Maybe the

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<v Speaker 1>low target and regulation either one would mean lower equity

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<v Speaker 1>prices today. I think we'll see a little sell off.

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<v Speaker 1>One of the things that I thought was interesting is

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<v Speaker 1>the quota for issuance of local government special bonds. These

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<v Speaker 1>are used to largely finance the big infrastructure projects that increased.

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<v Speaker 1>Now that may suggest that authorities or leadership is acknowledging

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<v Speaker 1>the recovery is still very fragile. The other point that

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<v Speaker 1>I think is very interesting premierly placing a high priority

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<v Speaker 1>on attracting some foreign investment. In previous years, we talk

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<v Speaker 1>a lot about the tension between the US and China.

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<v Speaker 1>I wonder where that new foreign investment may come from. Yeah,

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<v Speaker 1>particularly with the notion that you're going to have more

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<v Speaker 1>party operatives in there. And maybe it won't be growth

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<v Speaker 1>at any cost. It may not even be where there's

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<v Speaker 1>an emphasis on growth. It's more like on the sharing

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<v Speaker 1>for the rest of the people. So it's a difficult

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<v Speaker 1>one to call. Just briefly, I want to get your

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<v Speaker 1>reaction on Mary Daily. Anything new there, Well, I think

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<v Speaker 1>not really. A market is still expecting terminal rate at

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<v Speaker 1>five and a half percent. The interesting comments may have

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<v Speaker 1>come from former FED Vice chair Alan Blinder. He was

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<v Speaker 1>speaking to some of our colleagues over the weekend and

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<v Speaker 1>he doubts very much that the FED is going to

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<v Speaker 1>get that FED funds rate all the way up to

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<v Speaker 1>six percent. Yeah, all right, it's time for global needs.

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<v Speaker 1>China is announcing a significant increase in the military budget

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<v Speaker 1>as global tensions rise. Let's get the story from Ed

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<v Speaker 1>Baxter in the nine sixty newsroom in San Francisco, ed Yeah,

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<v Speaker 1>this follows along with what you guys are talking at.

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<v Speaker 1>The annual report released by the NPC says an increase

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<v Speaker 1>of seven point two percent this year. It is expected,

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<v Speaker 1>it says, to rise to two hundred twenty five billion

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<v Speaker 1>dollars this year. With a focus on increasing tensions with

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<v Speaker 1>the US on a range of issues, including Taiwan. Bloomberg

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<v Speaker 1>Stephen Engel says the signal is military commitment. Likazan says

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<v Speaker 1>we in government at all levels should give strong support

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<v Speaker 1>to the development of national defense and of the arms

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<v Speaker 1>armed forces. Meanwhile, spending on the PLA is increased by

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<v Speaker 1>at least six point six percent each year for the

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<v Speaker 1>past three decades. The report says the intent that China

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<v Speaker 1>has a world class force in place by twenty twenty seven.

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<v Speaker 1>Also in the report, China kept its language regarding Taiwan's stable,

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<v Speaker 1>saying China seeks a peaceful reunification with Taiwan, basically the

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<v Speaker 1>same word from last year. Even though tensions have increased,

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<v Speaker 1>There's been no definitive public statement about the origins of

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<v Speaker 1>COVID from the US government. Recording the labs in Wuhan,

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<v Speaker 1>of course, and former FDA director Scott Gottlieb on CBS

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<v Speaker 1>has heard here on Bloomberg Today, says classified information is

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<v Speaker 1>being held and the only statement that seems is that

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<v Speaker 1>it is likely. He says, though it's time to act.

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<v Speaker 1>We know that Chinese military was operating in that lab simultaneously,

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<v Speaker 1>so we need to look at all those things. I

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<v Speaker 1>would be focusing on the activities in and around that

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<v Speaker 1>lab and deriving from that what steps we need to

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<v Speaker 1>take going forward to make sure that we get better

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<v Speaker 1>security around high risk research that if this did come

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<v Speaker 1>out of a lab, it's not going to happen again. Yeah,

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<v Speaker 1>he says. Waiting is not the right path or good option.

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<v Speaker 1>Masako Mori, advisor to Japan's Prime Minister Fumi Okisha, is

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<v Speaker 1>saying Japan will disappear without action on births. He says

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<v Speaker 1>the falling birth rate threatens to wreck the society, safety

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<v Speaker 1>net and economy. European Commission President Ursula vander Layan has

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<v Speaker 1>calling for a separate justice tribunal to prosecute war crimes

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<v Speaker 1>committed by Russia in Ukraine. The European Union is supportive

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<v Speaker 1>of the role of the International Criminal Court We also

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<v Speaker 1>believe that there needs to be a dedicated tribunal to

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<v Speaker 1>prosecute Russia's crime of aggression. She says there's increasing evidence

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<v Speaker 1>of summary executions, assault torture, and that not even children

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<v Speaker 1>are being spared. Russia must be held accountable for these

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<v Speaker 1>horrific crimes, and Putin must be held accountable. We must

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<v Speaker 1>do everything in our power to bring the perpetrators to justice. Yeah.

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<v Speaker 1>Vonderland says it is now time to start the movement. Meanwhile,

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<v Speaker 1>former Maryland Governor Larry Hogan here in the US says

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<v Speaker 1>he will not run for president on CBS has heard

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<v Speaker 1>here on Bloomberg. He says a crowded field could get

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<v Speaker 1>Donald Trump nominated again. I think I can make a

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<v Speaker 1>continue to contribute toward getting the Republican Party back to

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<v Speaker 1>a more traditional, big tent party that can win elections

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<v Speaker 1>again without causing being part of a train wreck that

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<v Speaker 1>might repeat history, and just allow us to nominate Donald

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<v Speaker 1>Trump as our nominee, because I think that would be

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<v Speaker 1>bad for the party and bad for the country. Yeah.

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<v Speaker 1>Trump prevailed in twenty sixteen with about thirty percent of

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<v Speaker 1>the vote. Global News powered by more than twenty seven

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<v Speaker 1>hundred journalists and analysts and over one hundred twenty countries

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<v Speaker 1>in San Francisco. I'm Ed Baxter, and this is Bloomberg.

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<v Speaker 1>This is Bloomberg Daybreak Asia. Brian Curtis here along with

0:11:30.679 --> 0:11:33.719
<v Speaker 1>Rishad Salamat, and we've got Doug Chrissern Markets and ed

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<v Speaker 1>On News. Let's get to our guest, Christina Hooper, chief

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<v Speaker 1>Global market strategist at Invesco. Christina, investors are somewhat torn

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<v Speaker 1>between worrying about sticky inflation versus cheering growth. Where's your

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<v Speaker 1>mindset at the moment? Well, my view is that they're

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<v Speaker 1>still going to be a lot of nervousness and apprehension.

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<v Speaker 1>In the shorter term. We just don't know what the

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<v Speaker 1>FED is going to do, or at least markets don't

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<v Speaker 1>feel as though they have a grasp of what the

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<v Speaker 1>Fed's going to do, and they're spooked. However, I do

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<v Speaker 1>believe that the FED will air on the side of

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<v Speaker 1>only hiking rates about two more times at the most,

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<v Speaker 1>probably three, and so I ultimately think that we'll work

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<v Speaker 1>through the current uncertainty, will work through that volatility, and

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<v Speaker 1>the back half of this year will be a more

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<v Speaker 1>positive one for equities. Surely, the federal reserveles just have

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<v Speaker 1>to have more solid evidence as what they're doing before

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<v Speaker 1>they make a pulse. They will do a pause and

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<v Speaker 1>just to see how things are playing out before they

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<v Speaker 1>decide what to do next. Well, absolutely right they are.

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<v Speaker 1>They are ultimately very very data dependent. But what they

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<v Speaker 1>are seeing is inflation moderating, perhaps not as quickly as

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<v Speaker 1>they would like to see, especially when it comes to

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<v Speaker 1>services inflation. However, another piece of the puzzle is inflation expectations,

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<v Speaker 1>and longer term inflation expectations remain rather well anchored, and

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<v Speaker 1>I think that should help tip the scales in favor

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<v Speaker 1>of fewer rate hikes as opposed to getting to the

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<v Speaker 1>six percent or higher some fear. So it really seems

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<v Speaker 1>like the next set of data is just crucially important, right,

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<v Speaker 1>I mean, if you get another hot one, then well

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<v Speaker 1>there goes the disinflation trend. But if you kind of

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<v Speaker 1>swing back, then you can say, well we're on track.

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<v Speaker 1>I think so. Certainly what we've seen is a picture

0:13:31.280 --> 0:13:34.520
<v Speaker 1>of inflation moderating, and there can be some hiccups in

0:13:34.559 --> 0:13:37.800
<v Speaker 1>that picture as long as the FED is comfortable with

0:13:37.840 --> 0:13:41.480
<v Speaker 1>the trend. So yes, upcoming data will be important. But

0:13:41.760 --> 0:13:43.840
<v Speaker 1>keep in mind that they're going to continue to look

0:13:43.840 --> 0:13:46.880
<v Speaker 1>at the data, and so we really have until May

0:13:47.280 --> 0:13:50.280
<v Speaker 1>or June for the FED to make a decision without

0:13:50.360 --> 0:13:53.040
<v Speaker 1>having too many rate hikes. And of course they can

0:13:53.120 --> 0:13:56.679
<v Speaker 1>rip a page from the Bank of Canada's playbook in

0:13:56.840 --> 0:14:01.840
<v Speaker 1>terms of implementing a conditional pause, which I think is helpful,

0:14:02.040 --> 0:14:08.760
<v Speaker 1>especially for those concerned about inflation becoming persistent entrenched, because

0:14:08.880 --> 0:14:12.200
<v Speaker 1>that enables them to invoke data to get right back

0:14:12.200 --> 0:14:14.320
<v Speaker 1>in if they need to. I don't think they'll need to,

0:14:14.640 --> 0:14:19.840
<v Speaker 1>but it's good to have that hanging over the inflation picture. Christina,

0:14:19.920 --> 0:14:22.320
<v Speaker 1>do you think in six months time people may look back,

0:14:22.360 --> 0:14:24.800
<v Speaker 1>if they haven't got into it, go why did I

0:14:24.960 --> 0:14:29.280
<v Speaker 1>not invest in short duration treasuries? Well, I think there

0:14:29.280 --> 0:14:31.240
<v Speaker 1>are going to be people that look back and say,

0:14:31.400 --> 0:14:35.720
<v Speaker 1>why didn't I invest in fixed income? In general? In

0:14:35.720 --> 0:14:41.560
<v Speaker 1>investment grade fixed income, especially US looks really attractive right now.

0:14:41.800 --> 0:14:45.000
<v Speaker 1>All the pain that we as investors went through last

0:14:45.080 --> 0:14:48.360
<v Speaker 1>year has taken to us to a place where fixed

0:14:48.360 --> 0:14:50.920
<v Speaker 1>income is a lot more attractive than it's been in years.

0:14:51.160 --> 0:14:53.520
<v Speaker 1>And Christina, you say that, You say that, but I

0:14:53.520 --> 0:14:55.600
<v Speaker 1>mean if you're locked up in one, two and three

0:14:55.680 --> 0:14:59.240
<v Speaker 1>year bonds and we get a change in the markets,

0:14:59.280 --> 0:15:02.440
<v Speaker 1>inflation does come down quickly, saying the next month or two,

0:15:02.760 --> 0:15:05.360
<v Speaker 1>if people just we're all in on that, you know

0:15:05.400 --> 0:15:08.800
<v Speaker 1>they'll be regretting it, won't they. Well, hopefully they're well

0:15:08.800 --> 0:15:13.040
<v Speaker 1>diversified with their fixed income exposure, and so I think

0:15:13.080 --> 0:15:16.840
<v Speaker 1>they're they're likely to be very comfortable with the moves

0:15:17.000 --> 0:15:21.480
<v Speaker 1>we could see in incoming months. And again, part of

0:15:21.480 --> 0:15:25.080
<v Speaker 1>that is being well diversified in terms of duration. Yeah,

0:15:25.120 --> 0:15:29.960
<v Speaker 1>so where is the beef? Is it? Well? Would you recommend?

0:15:31.320 --> 0:15:34.000
<v Speaker 1>So this is a really interesting time, and again I

0:15:34.040 --> 0:15:36.600
<v Speaker 1>would say in the very short term, the next several months,

0:15:36.600 --> 0:15:39.640
<v Speaker 1>I expect a fair amount of volatility, a good amount actually,

0:15:39.640 --> 0:15:42.560
<v Speaker 1>because we have that uncertainty around the FED. We also

0:15:42.600 --> 0:15:45.880
<v Speaker 1>have uncertainty around the resolution of the debt ceiling crisis,

0:15:45.920 --> 0:15:49.200
<v Speaker 1>and that's a big one. However, I think in the

0:15:49.200 --> 0:15:51.640
<v Speaker 1>back half of the year we're likely to see equities

0:15:51.680 --> 0:15:56.600
<v Speaker 1>perform better. Right now, equities look attractive in Asia em

0:15:57.200 --> 0:16:00.800
<v Speaker 1>including China. Yes, I do think we're likely to see

0:16:00.840 --> 0:16:04.240
<v Speaker 1>a down day because of disappointment around the GDP target,

0:16:04.840 --> 0:16:07.800
<v Speaker 1>but I'm not very concerned about that. It could be

0:16:08.080 --> 0:16:12.000
<v Speaker 1>just a different approach in terms of managing expectations, setting

0:16:12.000 --> 0:16:14.920
<v Speaker 1>a low bar and then exceeding it well, and especially

0:16:14.960 --> 0:16:19.360
<v Speaker 1>since missing the target so dramatically last year, you can

0:16:19.440 --> 0:16:22.800
<v Speaker 1>kind of understand why they might put a cautious target up.

0:16:23.000 --> 0:16:26.320
<v Speaker 1>But there is that sort of pending more regulation story

0:16:26.480 --> 0:16:29.480
<v Speaker 1>that is sort of there at the edges. Are you

0:16:29.520 --> 0:16:31.600
<v Speaker 1>concerned about that or is it easy to kind of

0:16:31.840 --> 0:16:35.600
<v Speaker 1>write that down as well? So I'm not reading into

0:16:35.640 --> 0:16:39.720
<v Speaker 1>this more regulation. What I am reading into this is

0:16:39.760 --> 0:16:42.200
<v Speaker 1>that there could be a little less in the way

0:16:42.200 --> 0:16:44.840
<v Speaker 1>of stimulus, but I'm not even sure of that. Again,

0:16:44.880 --> 0:16:47.000
<v Speaker 1>I think this is more a story about reacting to

0:16:47.080 --> 0:16:51.320
<v Speaker 1>last year and having a low bar that China could

0:16:51.400 --> 0:16:55.000
<v Speaker 1>easily exceed this year. The tub is at what price?

0:16:55.080 --> 0:16:56.880
<v Speaker 1>I mean, just looking at the amount of debt that

0:16:56.960 --> 0:17:01.080
<v Speaker 1>the companies and in detail local authorities and local governments

0:17:01.120 --> 0:17:03.320
<v Speaker 1>have right now, and how they're being bailed out, and

0:17:03.360 --> 0:17:05.640
<v Speaker 1>they don't have any sources of any income, particularly because

0:17:05.600 --> 0:17:08.919
<v Speaker 1>they're major. One's gone and that was land sales. You know,

0:17:08.960 --> 0:17:10.960
<v Speaker 1>that's going to be a big, big headwind perhaps in

0:17:11.000 --> 0:17:13.800
<v Speaker 1>the medium to longer term. How do you deal with

0:17:13.800 --> 0:17:16.640
<v Speaker 1>that and what's your view of it? Well, certainly, you're

0:17:16.680 --> 0:17:20.920
<v Speaker 1>right that can be a significant headwind over the longer term.

0:17:21.240 --> 0:17:24.080
<v Speaker 1>But I think what we're seeing right now, the story

0:17:24.119 --> 0:17:28.120
<v Speaker 1>that we don't want to overlook, is the reopening. What

0:17:28.119 --> 0:17:32.440
<v Speaker 1>we're seeing is, in my opinion, not just revenge travel,

0:17:32.600 --> 0:17:36.680
<v Speaker 1>but revenge living. I think we're getting some real glimmers

0:17:36.680 --> 0:17:40.919
<v Speaker 1>of that, for example, the most recent PMI print for services,

0:17:41.400 --> 0:17:43.960
<v Speaker 1>and I think that we're likely to see that accelerate

0:17:44.080 --> 0:17:46.800
<v Speaker 1>this year. So, yes, there are long term concerns. I

0:17:46.800 --> 0:17:49.439
<v Speaker 1>think we can say there are longer term concerns and

0:17:49.520 --> 0:17:53.280
<v Speaker 1>headwinds for a variety of different economies and markets. But

0:17:53.359 --> 0:17:56.600
<v Speaker 1>there's a really compelling story right now. So what do

0:17:56.600 --> 0:17:59.679
<v Speaker 1>you buy there? I mean, there's the technology companies that

0:17:59.720 --> 0:18:03.920
<v Speaker 1>are down maybe you know, sixty percent still from earlier highs,

0:18:03.920 --> 0:18:06.000
<v Speaker 1>but would they ever get back to those highs? What

0:18:06.000 --> 0:18:09.040
<v Speaker 1>are you looking at? Well, do they have to get

0:18:09.240 --> 0:18:11.880
<v Speaker 1>back to those highs immediately? I think what we want

0:18:11.880 --> 0:18:14.120
<v Speaker 1>to do, yeah, right, yeah, Well we want to look

0:18:14.640 --> 0:18:18.359
<v Speaker 1>for are those areas where we could see some nice

0:18:19.000 --> 0:18:23.160
<v Speaker 1>capital appreciation in the next one to three years. And

0:18:23.200 --> 0:18:27.120
<v Speaker 1>I think certainly some of the tech names within China

0:18:28.040 --> 0:18:30.680
<v Speaker 1>fit the bill as well as just if you take

0:18:30.720 --> 0:18:34.439
<v Speaker 1>a step back more broadly, Asia em equities look to

0:18:34.520 --> 0:18:38.320
<v Speaker 1>benefit from this reopening, and then of course also I

0:18:38.359 --> 0:18:41.719
<v Speaker 1>think a great opportunity as US investment grade fixed income.

0:18:43.000 --> 0:18:45.440
<v Speaker 1>I would look also beyond that for those with longer

0:18:45.480 --> 0:18:48.680
<v Speaker 1>time horizons, and say, US tech might not come back

0:18:48.800 --> 0:18:54.040
<v Speaker 1>right away, and certainly you know it's not likely to

0:18:54.119 --> 0:18:57.400
<v Speaker 1>have the kind of bounce back that we could see

0:18:57.400 --> 0:19:00.879
<v Speaker 1>in cyclicals later this year, but it looks attractive for

0:19:00.880 --> 0:19:07.000
<v Speaker 1>the longer term. This is Bloomberg Daybreak Asia, your morning

0:19:07.000 --> 0:19:09.639
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