WEBVTT - Meta Sales Top Estimates and First Republic Tumbles

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<v Speaker 1>This is Bloomberg Daybreak Asia for this Thursday, April twenty

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<v Speaker 1>seventh in Hong Kong, Wednesday April twenty sixth in New

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<v Speaker 1>York and coming up today.

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<v Speaker 2>Shares in First Republic Bank plunge on word Advisors have

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<v Speaker 2>lined up potential buyers of new stock as part of

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<v Speaker 2>a rescue plan.

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<v Speaker 1>Shares in Meta Platforms jump after the company reports sales

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<v Speaker 1>that top analyst estimates.

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<v Speaker 2>And Microsoft sixty nine billion dollar takeover of Activision. Blizzard

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<v Speaker 2>is blocked by the UK government.

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<v Speaker 3>McCarthy's debt ceiling Bell Biden says any North Korea nuclear

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<v Speaker 3>attack will end Kim's regime. Disney sues DeSantis. I'm at

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<v Speaker 3>Baxter with Global News.

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<v Speaker 4>That's all straight ahead on Bloomberg Daybreak Asia, The business

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<v Speaker 4>news you need to start your day in just one

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<v Speaker 4>fifteen minute podcast available on Apple, Spotify, the Bloomberg Business App,

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<v Speaker 4>and everywhere you get your podcasts.

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<v Speaker 2>I'm Brian Curtis and I'm Doug Krisner. Here are the

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<v Speaker 2>stories we're following today. Will begin with Meta Platforms after

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<v Speaker 2>the bell, the company reported first quarter sales jumping to

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<v Speaker 2>twenty eight point six billion dollars. The street was looking

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<v Speaker 2>for something about a billion dollars less than that, so

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<v Speaker 2>this represents a return to growth after three straight quarters

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<v Speaker 2>of declines. Meta continued to add users. In the prior

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<v Speaker 2>quarter for Facebook, Instagram, and WhatsApp, more than three billion

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<v Speaker 2>people used it at least one of the products, I

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<v Speaker 2>should say daily. That's a new milestone. Some setbacks though.

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<v Speaker 2>Reality Labs, which is the Meta division focused on kind

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<v Speaker 2>of R and D revenue there down fifty one percent.

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<v Speaker 2>This is the division focused on building a virtual reality

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<v Speaker 2>tech for the metaverse. Bloomberg's man Deep Singh tells us

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<v Speaker 2>the company will continue to pour money into this area.

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<v Speaker 5>The foundational layer is AI. They are harnessing a lot

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<v Speaker 5>of that data. They are training their own equivalent of

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<v Speaker 5>large language models. We don't know how they'll be monetizing it.

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<v Speaker 5>It's not in the form of cloud infrastructure, which is

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<v Speaker 5>how Google and Microsoft are doing it. So we don't

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<v Speaker 5>know what that next application will be where they'll be

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<v Speaker 5>able to monetize it beyond the ad pricing, and you

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<v Speaker 5>know the ad business they already have, which is firing

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<v Speaker 5>on all cylenders. When it comes to the monetization they

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<v Speaker 5>have right.

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<v Speaker 2>Now, Bloomberg's Mandeep sing there Meta platforms up as much

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<v Speaker 2>as twelve percent in the late US session, and if

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<v Speaker 2>you go back from the first part of this year,

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<v Speaker 2>meta shares are up about seventy four percent. Let's take

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<v Speaker 2>a look at First Republic Bank. The stock was down

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<v Speaker 2>today quite a bit. This is after CNBC reported a

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<v Speaker 2>rescue plan is in the works for the struggling lender.

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<v Speaker 2>We have more from Bloombergs and Cates.

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<v Speaker 6>Advisors will try to persuade big US banks who've already

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<v Speaker 6>built out. First Republic wants to purchase its bonds at

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<v Speaker 6>above market rates for a loss of a few billion dollars,

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<v Speaker 6>and they have already aligned up possible purchasers. Analystit Tdcounts

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<v Speaker 6>say that while regulators don't act based on stock price,

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<v Speaker 6>a steep decline could raise questions about the ability of

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<v Speaker 6>a bank to raise fresh capital, and they believe there

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<v Speaker 6>will have to be a broader restructuring of First Republic.

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<v Speaker 6>First Republic last month got thirty billion dollars in deposits

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<v Speaker 6>from bigger financial institutions in Washington and Kates Bloomberg day

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<v Speaker 6>Break Asia.

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<v Speaker 2>Now separately, we are told US bank regulators are weighing

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<v Speaker 2>the prospects of downgrading their private assessment of First Republic.

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<v Speaker 2>The move may limit the troubled firm's access to those

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<v Speaker 2>lending facilities at the Federal Reserve well. As I mentioned earlier, tomorrow,

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<v Speaker 2>we'll get the latest report card for the American economy.

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<v Speaker 2>GDP numbers for Q one out at eight thirty am

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<v Speaker 2>Wall Street time. We have a preview from Bloomberg's Michael McKee.

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<v Speaker 7>The GDP data are likely to present a picture of

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<v Speaker 7>a US economy that started the year strong before losing momentum.

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<v Speaker 7>The strength of the report is expected to be consumer spending,

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<v Speaker 7>particularly in January, although at least one bank suggests the

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<v Speaker 7>government's recent statistical adjustments to spending may cut growth concent considerably.

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<v Speaker 7>Inventory should be a drag, falling back after a big

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<v Speaker 7>bill at the end of twenty twenty two. Residential investment

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<v Speaker 7>will take a hit from the battered housing market and

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<v Speaker 7>durable goods. As they showed Wednesday, show business investment has

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<v Speaker 7>been tepid. Analysts and the Fed will have to decide

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<v Speaker 7>whether the slowdown is as expected given the Fed's rate increases,

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<v Speaker 7>or if it signals trouble ahead in the next few quarters.

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<v Speaker 7>Michael McKee, Bloomberg Daybreak Asia.

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<v Speaker 2>Well, it could be game over from Microsoft and its

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<v Speaker 2>hopes of buying Activision Blizzard. Let's get the story from

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<v Speaker 2>Bloomberg's to Nise Pellegrini.

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<v Speaker 8>The UK's antitrust watch dog is blocking the planned sixty

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<v Speaker 8>nine billion dollar takeover. The Competition and Markets Authority says

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<v Speaker 8>its concerns can't be resolved by any proposed remedies. In

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<v Speaker 8>the US, the Federal Trade Commission has already sued to

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<v Speaker 8>block the deal, and the European Commission is supposed to

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<v Speaker 8>rule by May twenty second. The Microsoft takeover of Activision

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<v Speaker 8>was being builled as the biggest ever deal pending in

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<v Speaker 8>the gaming industry. Microsoft and Activision both say they do

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<v Speaker 8>plan to appeal that decision. Denise Pellgrity, Bluebirg day Break

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<v Speaker 8>Asia maytime.

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<v Speaker 2>The Biden administration is urging China to improve its protections

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<v Speaker 2>for intellectual property. The US has the pace of Beijing's

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<v Speaker 2>reform simply slowed last year. Now, Washington has been closely

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<v Speaker 2>monitoring China's progress in the implementation of commitments made in

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<v Speaker 2>the recent deal. The agreement was signed after a two

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<v Speaker 2>year tariff war launched under the Trump administration. In an

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<v Speaker 2>annual review, the Office of the US Trade rep says

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<v Speaker 2>China should provide a level playing field for IP protection

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<v Speaker 2>and enforcement. It went on to say concerns remain about

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<v Speaker 2>the implementation of China's measures, the USTR saying that China

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<v Speaker 2>should open its market to foreign investment and embrace market

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<v Speaker 2>oriented policies. This is Daybreak Asia. I'm joined now by

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<v Speaker 2>Brian Curtis, who's coming in from Hong Kong. Your thoughts

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<v Speaker 2>as we get set for trading in Asia today.

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<v Speaker 1>Well, you look at meta higher revenue at a time

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<v Speaker 1>when you're reducing costs, So that's very good recipe for gains,

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<v Speaker 1>and that's why we see such big gains after hours.

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<v Speaker 1>But I think it's really not a good sign for

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<v Speaker 1>the bulls dug to see the broader benchmarks not being

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<v Speaker 1>able to rally today after such strong earnings from companies

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<v Speaker 1>like Microsoft and alphabet and so it may bode for

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<v Speaker 1>a little bit more selling in the market. We don't know.

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<v Speaker 1>A lot depends on the data as well, but anyway,

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<v Speaker 1>if you're a bull, you're probably a little concerned.

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<v Speaker 2>And I noted earlier that THESC China Index was able

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<v Speaker 2>to snap a six day losing streak that may be significant.

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<v Speaker 2>The MSCI China Index up about that nine tenths of

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<v Speaker 2>one percent, and then stateside we had the Nasdaq Golden

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<v Speaker 2>Dragon China Index up about one percent. But I was

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<v Speaker 2>struck by this survey published on Wednesday, data shared exclusively

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<v Speaker 2>with Bloomberg. More than half of Chinese travelers say they

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<v Speaker 2>haven't plans to go abroad this year during the Golden

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<v Speaker 2>Week holiday.

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<v Speaker 1>Yeah, that'll be a big till, won't it. The Golden

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<v Speaker 1>Week holiday is one thing. And then also what we

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<v Speaker 1>might get from the Pollit Bureau, they're still expected to

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<v Speaker 1>meet this week to look at economic priority. Now, we

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<v Speaker 1>had interpreted that in one of our main stories at

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<v Speaker 1>Bloomberg that this could mean less stimulus coming. That's what

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<v Speaker 1>we're hearing from different economists around the region. But you know,

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<v Speaker 1>you're getting some really interesting cross currents here. Picta Asset

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<v Speaker 1>Management is calling for six point six percent growth for

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<v Speaker 1>the full year for the economy, and Goldman Sachs is

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<v Speaker 1>saying that strong earnings will lift China stocks. Ninety percent

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<v Speaker 1>of China firms giving positive first quarter guidance. Yet we've

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<v Speaker 1>had nearly half a trillion dollar sell off that you

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<v Speaker 1>mentioned at the beginning there in Chinese stocks, so albeit

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<v Speaker 1>with a little pause in the selling today.

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<v Speaker 2>All right, let's get global news next. We have House

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<v Speaker 2>Speaker Kevin McCarthy getting his debt bill passed ed. Baxter

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<v Speaker 2>has the latest from the Bloomberg newsroom in San Francisco.

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<v Speaker 3>Eddie, Yeah, boy, the major victory for him, Doug, he

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<v Speaker 3>just snuck it through his party barely call list behind

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<v Speaker 3>him Bloomberg's Emily Wilkins.

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<v Speaker 1>Here.

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<v Speaker 9>They spend all day to day twisting arms, getting folks

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<v Speaker 9>on board. Certainly those handful of changes that they put

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<v Speaker 9>into place at two in the morning were helpful. They

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<v Speaker 9>addressed concerns that iwins had about corn and biofuels. They

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<v Speaker 9>addressed some some concerns that those across the conference had

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<v Speaker 9>on when work requirements would start.

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<v Speaker 3>Yeah. A Republican Congressman Josh Holly, though, repeated, it's all

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<v Speaker 3>about getting Joe Biden to the table. We all know

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<v Speaker 3>how this is going to be resolved in the end.

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<v Speaker 3>If it is resolved, and that is, the president is

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<v Speaker 3>going to have to He's going to have to negotiate.

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<v Speaker 10>Now.

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<v Speaker 3>President Biden has said today again he'd be glad to

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<v Speaker 3>sit down with McCarthy to discuss raising the debt ceiling.

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<v Speaker 3>If McCarthy took the fault off the table so it

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<v Speaker 3>is passed, it will have a tough time in the Senate.

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<v Speaker 3>Democrat Richard Blumenthal.

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<v Speaker 11>There may be a way to combine the two, but

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<v Speaker 11>right now, let's do the debt ceiling and have an

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<v Speaker 11>understanding that there can be discussions and conversations and even

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<v Speaker 11>negotiation about what the any limit should be going forward

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<v Speaker 11>in the next budget.

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<v Speaker 3>So let's see if it even gets brought up in

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<v Speaker 3>the Senate. That will be the next step. The meetings

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<v Speaker 3>between presidents of South Korea and the United States come

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<v Speaker 3>with a promise of increased deterrence against nuclear threats. President

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<v Speaker 3>Joe Biden today in a meeting with South Korean President

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<v Speaker 3>Eun Suk Yule, mentioned North Korea and Kim John undirectly.

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<v Speaker 12>A nuclear attack by North Korea against the United States

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<v Speaker 12>or its allies or partisans partners is unacceptable and will

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<v Speaker 12>result in the end of whatever regime we're to take such.

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<v Speaker 3>An action, he says. The agreement signed today will have

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<v Speaker 3>nuclear weapons deployed on will not have nuclear weapons deployed

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<v Speaker 3>on the peninsula, but there will be visits to ports

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<v Speaker 3>by nuclear submarines, Biden saying nuclear attack is not the

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<v Speaker 3>only thing that this partnership will serve.

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<v Speaker 12>There's still a contest between autocracies and democracies, and we're

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<v Speaker 12>the meeting democracy in the world. And it's something I

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<v Speaker 12>know fair amount about, something I care about. I have

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<v Speaker 12>found a willingness and offl out of our allies and

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<v Speaker 12>trends to call it so.

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<v Speaker 3>At the briefing, President Ewn was asked whether the intelligence

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<v Speaker 3>leaks in the US threatened the relationship.

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<v Speaker 13>Hamlana with regard to that we are communicating between our

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<v Speaker 13>two countries and we are sharing necessary information. I believe

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<v Speaker 13>that investigation isn't your way in the United States, and.

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<v Speaker 3>To that point, Bloomberg Sam Kim, who's traveling with President Ewan,

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<v Speaker 3>says they kind of expected the intelligence gathering anyway.

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<v Speaker 14>There's American soldiers, about thirty thousand American soldiers station and

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<v Speaker 14>some of them are stationed right at the center of

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<v Speaker 14>the city. They still are, and there's a massive intelligence operations.

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<v Speaker 14>I'm not saying they're spying in South Korea, but they

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<v Speaker 14>need to do that in order to maintain the treaty

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<v Speaker 14>around the peninsula.

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<v Speaker 3>Sam says trust very important part of the relationship, and

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<v Speaker 3>both say that it is there. Well only it was

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<v Speaker 3>para by more than twenty seven hundred journalist and listen

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<v Speaker 3>over one hundred and twenty countries in San Francisco. I'm

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<v Speaker 3>at Baxter and this is Bloomberg.

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<v Speaker 1>I'm Brian Curtis in Hong Kong along with Rishard Salamad,

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<v Speaker 1>and our guest is Jin Bailu, who is portfolio manager

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<v Speaker 1>at Trabeca Investment Partner, is joining us from our studio

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<v Speaker 1>in Sydney. Jim Belu, Nice to have you on the program.

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<v Speaker 1>As usual, we mentioned it's an interesting environment where you

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<v Speaker 1>have such strong earnings from the tech companies and the

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<v Speaker 1>major benchmarks don't rally. However, if you pick the right companies,

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<v Speaker 1>you're singing all the way to the bank. If you

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<v Speaker 1>pick the right bank, that's the world we live in.

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<v Speaker 15>Well, absolutely, thank you so much for having me. Look,

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<v Speaker 15>this is a crazy world, and you know, I would

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<v Speaker 15>actually say this is really a market for active investors.

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<v Speaker 15>You pick the right company that will deliver you earning

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<v Speaker 15>and high expectations and growth, and that company is going

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<v Speaker 15>to deliver a lot of return. You know, this is

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<v Speaker 15>not the sort of market environment where you can just

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<v Speaker 15>buy benchmark and hopefully generate return. There's a lot of

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<v Speaker 15>uncertainties out there. There's lack of generally lack of investor

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<v Speaker 15>confidence in you know, just buying up all the sectors.

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<v Speaker 15>You know, some of the risks are tail risks that

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<v Speaker 15>were previously thought were really just tail risk and now

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<v Speaker 15>just become a little bit more significant. And and that's

0:12:19.240 --> 0:12:22.120
<v Speaker 15>what sort of investors grappling with every single day.

0:12:23.040 --> 0:12:25.840
<v Speaker 10>Well, you say you've got to be active and nimble. Well,

0:12:26.640 --> 0:12:28.200
<v Speaker 10>I mean, surely you just put your money into a

0:12:28.200 --> 0:12:31.520
<v Speaker 10>money market fund and you're getting a decent return fixed

0:12:31.559 --> 0:12:34.760
<v Speaker 10>income wise, and you know that's one way of playing this,

0:12:34.840 --> 0:12:36.040
<v Speaker 10>I guess, and having the safety.

0:12:36.920 --> 0:12:40.080
<v Speaker 15>Yeah, look absolutely, but given them an equity market manager

0:12:40.200 --> 0:12:43.360
<v Speaker 15>that I certainly think the share market represents significant amount

0:12:43.360 --> 0:12:47.120
<v Speaker 15>of opportunity for the right investor being nimble and finding

0:12:47.280 --> 0:12:49.679
<v Speaker 15>you know, return opportunity. You know, we just talked to

0:12:49.800 --> 0:12:53.880
<v Speaker 15>some of those you know, great megacabs like Microsoft, like

0:12:53.960 --> 0:12:57.240
<v Speaker 15>the Google reporting phenomenal results and you know.

0:12:57.200 --> 0:12:59.559
<v Speaker 16>So far this year they've done very very well relative to.

0:13:00.240 --> 0:13:02.200
<v Speaker 15>You know the likes of banks and you know, the

0:13:02.240 --> 0:13:05.080
<v Speaker 15>cyclicals that's being sort of under pressure at the moment,

0:13:05.200 --> 0:13:08.120
<v Speaker 15>so it's really yeah, put your money to work, whether

0:13:08.160 --> 0:13:10.760
<v Speaker 15>it's fixed income. My view is that capital growth is

0:13:10.840 --> 0:13:14.400
<v Speaker 15>going to be quite significant and in the equity market,

0:13:14.480 --> 0:13:16.080
<v Speaker 15>so that's a good place for the money too.

0:13:17.000 --> 0:13:20.079
<v Speaker 1>You're pretty positive. I note that in your three conviction

0:13:20.240 --> 0:13:23.680
<v Speaker 1>calls you like US stocks to finish the year higher.

0:13:24.480 --> 0:13:28.240
<v Speaker 1>China reopening is gathering momentum. Perhaps you can talk about

0:13:28.280 --> 0:13:32.640
<v Speaker 1>that and that Australia will avoid recession. So given that

0:13:32.720 --> 0:13:36.800
<v Speaker 1>positive view, let's switch to China. Is the China reopening

0:13:37.200 --> 0:13:40.680
<v Speaker 1>part and parcel of that positive view for even US

0:13:40.760 --> 0:13:43.200
<v Speaker 1>stocks and Australia avoiding recession.

0:13:43.679 --> 0:13:45.199
<v Speaker 16>Look absolutely.

0:13:45.720 --> 0:13:47.760
<v Speaker 15>I think you know, for Australia, China is a very

0:13:47.800 --> 0:13:50.480
<v Speaker 15>important trading partner and a big part of our market

0:13:50.480 --> 0:13:52.600
<v Speaker 15>cap is very much linked to the fortune of China.

0:13:53.280 --> 0:13:57.400
<v Speaker 15>And you know, the will the reopening thematic is well

0:13:57.440 --> 0:14:00.440
<v Speaker 15>on the way, and I do think that the progress

0:14:00.440 --> 0:14:04.160
<v Speaker 15>has been very very promising. Now clearly there's you know,

0:14:04.240 --> 0:14:07.200
<v Speaker 15>star stop and then there's slowing data and consumption isn't

0:14:07.240 --> 0:14:10.200
<v Speaker 15>as good as fast as what everyone expecting. But don't

0:14:10.240 --> 0:14:13.760
<v Speaker 15>forget every other market when we went through reopening, like Australia,

0:14:13.880 --> 0:14:16.680
<v Speaker 15>like the US, we had many star stop and it

0:14:16.760 --> 0:14:18.800
<v Speaker 15>took years for US to really get back to that

0:14:18.800 --> 0:14:24.000
<v Speaker 15>one hundred percent you know, reopened activity. And you know,

0:14:24.080 --> 0:14:26.920
<v Speaker 15>I think China is achieving incredible progress and in the

0:14:26.920 --> 0:14:29.560
<v Speaker 15>next six month we will see some of those data

0:14:29.840 --> 0:14:31.720
<v Speaker 15>gathering momentum, you know, some.

0:14:31.600 --> 0:14:34.200
<v Speaker 1>Of the Yeah, that's that's I think that's consensus. But

0:14:34.240 --> 0:14:36.760
<v Speaker 1>why why is the stock market selling off so much?

0:14:37.760 --> 0:14:39.520
<v Speaker 1>You know, has been a really rough.

0:14:39.320 --> 0:14:43.160
<v Speaker 15>Month absolutely, so stock market is really grappling with you know,

0:14:43.200 --> 0:14:46.920
<v Speaker 15>I think the China reopening is definitely happening, but the

0:14:46.960 --> 0:14:49.360
<v Speaker 15>stock market is grappling with what's happening with the US

0:14:50.080 --> 0:14:52.760
<v Speaker 15>and Europe, some of the developed markets where things are

0:14:52.800 --> 0:14:55.880
<v Speaker 15>really slowing down very quickly. And the I think the

0:14:55.920 --> 0:14:59.880
<v Speaker 15>financial stress caused by some of those regional bank you know,

0:15:00.160 --> 0:15:04.080
<v Speaker 15>going under or having liquidity crisis is just really put

0:15:04.120 --> 0:15:08.000
<v Speaker 15>some heightened some of those risks that the investors sort

0:15:08.000 --> 0:15:10.480
<v Speaker 15>of you know, have been worried about for quite some time.

0:15:10.680 --> 0:15:13.040
<v Speaker 15>So I think this is what's happening. And right now,

0:15:13.440 --> 0:15:15.880
<v Speaker 15>you know, certainly seems like some of those regional banks

0:15:15.880 --> 0:15:19.960
<v Speaker 15>and the crisis liquidity crisis is contained to those markets.

0:15:20.320 --> 0:15:23.560
<v Speaker 16>But yes, you know, if it gets started spreading.

0:15:23.120 --> 0:15:26.200
<v Speaker 15>Into other markets, then they could put pressure or tighten

0:15:26.600 --> 0:15:29.560
<v Speaker 15>the financial condition. So don't forget we are in this,

0:15:30.080 --> 0:15:32.720
<v Speaker 15>you know, in this world where China is trying to

0:15:32.720 --> 0:15:35.720
<v Speaker 15>loosen the financial condition, trying to get it to going again,

0:15:35.920 --> 0:15:39.000
<v Speaker 15>whereas everywhere else was trying to contain or trying to

0:15:39.040 --> 0:15:41.880
<v Speaker 15>tighten the financial condition. So clearly I know where the

0:15:41.920 --> 0:15:45.000
<v Speaker 15>capital should go to generate return. But you know a

0:15:45.000 --> 0:15:47.000
<v Speaker 15>lot of global investors, you kind of if you have

0:15:47.040 --> 0:15:50.200
<v Speaker 15>to be invested, it's you know, it's a challenging period.

0:15:50.840 --> 0:15:52.600
<v Speaker 10>Well, obviously a lot of money has also gone into

0:15:53.440 --> 0:15:55.880
<v Speaker 10>fixed income as well, hasn't it. But I'm just looking

0:15:55.920 --> 0:15:58.000
<v Speaker 10>for a recording point of view, and what are the

0:15:59.040 --> 0:16:02.600
<v Speaker 10>I suppose the geographies you like in the sectors within

0:16:02.640 --> 0:16:04.280
<v Speaker 10>those geographies that you like, and the ones that you

0:16:04.400 --> 0:16:05.280
<v Speaker 10>absolutely do not.

0:16:06.880 --> 0:16:09.080
<v Speaker 15>Yeah, look absolutely, So you know our view is that,

0:16:09.640 --> 0:16:12.200
<v Speaker 15>you know, given this we talked to this uncertain world.

0:16:12.840 --> 0:16:14.920
<v Speaker 15>You know, we do think the quality growth leaders is

0:16:14.920 --> 0:16:18.000
<v Speaker 15>going to do well. Companies are actually not unprofitable. Growth

0:16:18.080 --> 0:16:20.960
<v Speaker 15>leaders is the quality that the company actually make, you know,

0:16:21.040 --> 0:16:24.680
<v Speaker 15>make significant returns and high roes and generate growth is

0:16:24.720 --> 0:16:27.680
<v Speaker 15>going to be the key return generator in this market.

0:16:28.360 --> 0:16:31.080
<v Speaker 15>You know, healthcare we talked to before is you know,

0:16:31.160 --> 0:16:33.920
<v Speaker 15>sits really well within that space where they have structural

0:16:33.920 --> 0:16:37.440
<v Speaker 15>growth driver and many of them have you know, is

0:16:37.480 --> 0:16:40.400
<v Speaker 15>going to have tailwind post in the post pandemic world.

0:16:41.200 --> 0:16:44.680
<v Speaker 15>And aside from that, we are seeing you know, sectors

0:16:44.720 --> 0:16:48.080
<v Speaker 15>where you know, they're being sold off because of you know,

0:16:48.160 --> 0:16:51.040
<v Speaker 15>uncertainties around the world, but they are linked to the

0:16:51.120 --> 0:16:54.240
<v Speaker 15>China reopening trade, you know, and we see those sectors

0:16:54.280 --> 0:16:58.520
<v Speaker 15>actually represent really good short term tactical opportunities, you know,

0:16:58.640 --> 0:17:02.400
<v Speaker 15>as we we we sail through this uncertain period.

0:17:02.560 --> 0:17:06.000
<v Speaker 1>Okay, you mentioned you mentioned the geopolitics is one reason

0:17:06.000 --> 0:17:10.200
<v Speaker 1>why stocks have been faltering in the China sphere. Now

0:17:10.200 --> 0:17:14.200
<v Speaker 1>you're saying that Australia will avoid recession, Australia is also

0:17:14.280 --> 0:17:16.840
<v Speaker 1>kind of wrapped up in a lot of the geopolitics

0:17:16.840 --> 0:17:20.840
<v Speaker 1>with China as well. What's the best play then for

0:17:20.920 --> 0:17:22.480
<v Speaker 1>your confidence in Australia.

0:17:23.520 --> 0:17:25.040
<v Speaker 16>Look Australia economy.

0:17:25.600 --> 0:17:28.399
<v Speaker 15>We if you look at some of the data in

0:17:28.480 --> 0:17:32.760
<v Speaker 15>terms of inflation the like it wasn't it didn't rise

0:17:32.880 --> 0:17:35.879
<v Speaker 15>as sharply as every other markets like the China and

0:17:36.280 --> 0:17:39.320
<v Speaker 15>other countries. You know, it's partly because our you know

0:17:39.400 --> 0:17:44.040
<v Speaker 15>lockdown and disruption to reopening was longer than other markets,

0:17:44.600 --> 0:17:46.920
<v Speaker 15>so in the way, we sort of avoided that peak

0:17:47.000 --> 0:17:48.680
<v Speaker 15>of you know, inflationary pressure.

0:17:48.880 --> 0:17:50.760
<v Speaker 16>Now, our inflation is high, our.

0:17:50.640 --> 0:17:53.320
<v Speaker 15>Interest rate is still yet to be at the you know,

0:17:53.440 --> 0:17:57.200
<v Speaker 15>the reasonable level, but it certainly seems like the interest

0:17:57.240 --> 0:18:03.359
<v Speaker 15>rate increases is slowing down Australia and the inflation read

0:18:03.560 --> 0:18:05.879
<v Speaker 15>it seems to be sort of topping out. And that

0:18:06.040 --> 0:18:08.800
<v Speaker 15>is you know, encouraging because we may not have to

0:18:08.800 --> 0:18:11.080
<v Speaker 15>get to the interest rate that is achieved by other

0:18:11.160 --> 0:18:14.959
<v Speaker 15>markets like the US. So you know, so that together thinks, okay,

0:18:15.160 --> 0:18:18.160
<v Speaker 15>housing is not falling as bad as what people are expecting,

0:18:18.400 --> 0:18:21.040
<v Speaker 15>so that creates a bit of a little bit more confidence.

0:18:21.080 --> 0:18:21.359
<v Speaker 16>Clip.

0:18:21.760 --> 0:18:23.760
<v Speaker 10>I just want to just get one very quick one.

0:18:23.760 --> 0:18:26.640
<v Speaker 10>And if suddenly we get to this announcement, let's say

0:18:26.880 --> 0:18:30.880
<v Speaker 10>the Fed went twenty five basis points and okay, we're done.

0:18:31.359 --> 0:18:33.560
<v Speaker 10>They just say that, why would the market react to you?

0:18:33.640 --> 0:18:36.719
<v Speaker 15>Of you, market will be very pleased, but twenty five

0:18:36.760 --> 0:18:39.600
<v Speaker 15>basis point is being priced in, so market would like that.

0:18:39.640 --> 0:18:41.720
<v Speaker 15>And then in the next six month we should begin

0:18:41.800 --> 0:18:44.000
<v Speaker 15>to see a very strong equity market on basis of

0:18:44.000 --> 0:18:45.720
<v Speaker 15>the certainty of the interest rate directions.

0:18:47.520 --> 0:18:50.359
<v Speaker 1>This is Bloomberg Daybreak Asia, your morning brief on the

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