WEBVTT - APAC Markets Prepare for June Fed Decision

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

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<v Speaker 2>This is the Bloomberg Daybreak Asia podcast. I'm Doug Krisner.

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<v Speaker 2>You can join Brian Curtis and myself for the stories,

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<v Speaker 2>making news and moving markets in the APAC region. You

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<v Speaker 2>and always on Bloomberg Radio, the Bloomberg Terminal, and the

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<v Speaker 2>Bloomberg Business App.

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<v Speaker 3>Joining us for a look at markets now is John Lynch,

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<v Speaker 3>CIO at Comerica Wealth Management. John, it's kind of a

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<v Speaker 3>conflicted bull market that we have here at the moment.

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<v Speaker 3>I'm curious whether you see the CPI report this week

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<v Speaker 3>or the Fed decision and its dot plots likely to

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<v Speaker 3>change much this week.

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<v Speaker 4>Hey Brian, good morning. Yes, I think first off, on

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<v Speaker 4>the CPI report, I noticed earlier the Bloomberg consensus is

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<v Speaker 4>only calling for one tenth of one percent increase month

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<v Speaker 4>over months, and I think that's a bit of a stretch.

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<v Speaker 4>I think that's a little optimistic. We've seen really good

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<v Speaker 4>job growth, we saw a rebound in services. Auto sales

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<v Speaker 4>are approaching sixteen million at a seasonally adjusted at annual rate,

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<v Speaker 4>So I think that the street might be in for

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<v Speaker 4>a disappointment on the month over month data on headline

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<v Speaker 4>CPI to the degree core CPI comes in about three tenths,

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<v Speaker 4>hopefully that'll be the saving grace, but I do think

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<v Speaker 4>investors should be mindful of that month over month print.

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<v Speaker 4>And to your point on the FOMC, I guess at

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<v Speaker 4>the end of the March meeting, the dot plot was

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<v Speaker 4>for three cuts this year. As you know, FED fun

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<v Speaker 4>futures are looking at exactly half that amount, and it'll

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<v Speaker 4>be very interesting to see whether or not they come

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<v Speaker 4>out with one or two.

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<v Speaker 2>So do you think there's a real risk then the

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<v Speaker 2>bond market maybe sees a little bit of weakness and

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<v Speaker 2>we have a popping yield right now. The last couple

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<v Speaker 2>of days have seen a dramatic decline in yield, and

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<v Speaker 2>I saw the way in which bank stocks were squeezed,

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<v Speaker 2>particularly today. Do you think there's a risk that yields

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<v Speaker 2>pop from here?

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<v Speaker 4>I do. I think. You know, we've been looking even globally,

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<v Speaker 4>we've been in a downward trend, but we saw surprisingly

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<v Speaker 4>strong demand for the thirty year I guess we had.

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<v Speaker 4>I'm sorry for the tenure auction today there were thirty

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<v Speaker 4>nine billion, I think, and we met with really strong demand.

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<v Speaker 4>So we're right in that, you know, lower bound of

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<v Speaker 4>the four thirty to four to seventy range that we've

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<v Speaker 4>been trading in. We're about I guess we closed at

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<v Speaker 4>four forty, but yeah, we could we could see a

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<v Speaker 4>pop you know, five to ten basis points. Should that

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<v Speaker 4>month over month number disappoint.

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<v Speaker 3>Yeah, it seems like that there was quite a lot

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<v Speaker 3>of relief today with the Treasury auction that you know

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<v Speaker 3>that there was demand, strong demand. Why do you think

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<v Speaker 3>there was given you know, the previous somewhat failed auctions

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<v Speaker 3>and the fears that you know, at some point the

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<v Speaker 3>bond vigilantes will be you know back in forth.

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<v Speaker 4>You use the perfect word. It was relief. It didn't

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<v Speaker 4>seem like confidence to me at all. I think it

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<v Speaker 4>was very very much relief given the uh, you know,

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<v Speaker 4>the poor auctions that we saw in fives and sevens

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<v Speaker 4>over the past couple of weeks. So I just think,

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<v Speaker 4>you know, the bond market is really in you know,

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<v Speaker 4>right in the mid fes. You know, we could really

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<v Speaker 4>frankly break either way. You know, if you if you

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<v Speaker 4>think about all the money that's been spent post pandemic

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<v Speaker 4>death sit spending you know, we're one point six one

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<v Speaker 4>point seven trillion budget deficit in spite of four percent GDP.

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<v Speaker 4>I mean, that's not a full employment type reed, So

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<v Speaker 4>you could break upwards over the next six or twelve

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<v Speaker 4>months on that or heaven forbid, you know, we have

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<v Speaker 4>you know, a worse geopolitical situation which could see us

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<v Speaker 4>break lower. So I think, you know, again very instructive

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<v Speaker 4>that you use the word relief because I think bond

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<v Speaker 4>investors are kind of straddling the fence on that.

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<v Speaker 5>John.

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<v Speaker 2>I'd like to get your view on what you're seeing

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<v Speaker 2>with respect to this artificial intelligence trade. Yesterday we had

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<v Speaker 2>Apple unveiling this new platform called Apple Intelligence. May be

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<v Speaker 2>a delayed response today. The stock was weak yesterday, but

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<v Speaker 2>I think analysts kind of weighing in on the fact

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<v Speaker 2>that maybe this creates an upgrade cycle for the latest

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<v Speaker 2>diversion of the iPhone, and today Apple shares pop more

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<v Speaker 2>than seven percent to a record. Are you still a

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<v Speaker 2>buyer this AI theme?

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<v Speaker 4>You know, it's interesting. Apple was faced a great deal

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<v Speaker 4>of criticism yesterday on the rollout, but I think I

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<v Speaker 4>don't know if you want to say cooler heads prevailed

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<v Speaker 4>or more optimistic heads prevailed today. Yeah, the A I

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<v Speaker 4>think you know, I'm still I'm still behind it. You know,

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<v Speaker 4>I've been asked a lot about nineteen ninety nine and

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<v Speaker 4>when I just see you know, if you want to

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<v Speaker 4>use the Cisco VERSUS Microsoft or currently Apple or Nvidia example,

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<v Speaker 4>multiples are very different. It's a different type of scenario.

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<v Speaker 4>The growth companies driving this not only have earnings, but

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<v Speaker 4>they have significant cash flows and they're trading at significantly

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<v Speaker 4>better multiples than we saw some of the leaders twenty

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<v Speaker 4>five years ago. So yeah, I'm still behind it. I

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<v Speaker 4>like the fact that businesses are confident enough to spend,

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<v Speaker 4>and you know, we saw durable goods orders, right, so

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<v Speaker 4>business spending on employees and they're spending on orders. And

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<v Speaker 4>to the degree that you're seeing even within the tech space,

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<v Speaker 4>semiconductors outperform software, so that that's a pretty good cyclical

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<v Speaker 4>indication at this point in the cycle. And you can

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<v Speaker 4>even see that on equal weight basis as well.

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<v Speaker 3>So I want to give you a quote, and I

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<v Speaker 3>want to you know, sort of introduce you to the

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<v Speaker 3>reporter's notebook for why I'm quoting this. You know, I'll

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<v Speaker 3>get up at three o'clock in the morning for the

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<v Speaker 3>show and sometimes wake up at about one, and you know,

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<v Speaker 3>I just get my book and read for a while

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<v Speaker 3>and hope to go back to sleep. So I read

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<v Speaker 3>this line in the book that I'm reading at the moment.

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<v Speaker 3>It's back at the beginning of the chip industry, and

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<v Speaker 3>I'm paraphrasing. Texas Instruments had sales of five hundred thousand

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<v Speaker 3>dollars in nineteen fifty eight. Two years later it was

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<v Speaker 3>twenty one million. That's sales jumping forty two times in

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<v Speaker 3>two years. And I was thinking, hey, take that in.

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<v Speaker 4>Vidia, absolutely good quote, and uh yeah, it's a labor

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<v Speaker 4>of love when we wake up at that hour, isn't it.

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<v Speaker 3>Well, you know, the point, the point really of the

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<v Speaker 3>anecdote is that, you know, we're so surprised at you know,

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<v Speaker 3>how fast AI is growing, but you know, we forget

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<v Speaker 3>that there's been a number of these trends, you know,

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<v Speaker 3>semiconductors in the early stages. We're just doubling in quadrupling

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<v Speaker 3>and quintumpling and you name it, forty two times in

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<v Speaker 3>two years. It's impressive.

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<v Speaker 4>Absolutely absolutely not only were they doubling, but the prices

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<v Speaker 4>were cut in half. Right, War's law. So you know

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<v Speaker 4>the speed with which we've seen over the last twenty

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<v Speaker 4>five years. You know, that's why I don't think the

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<v Speaker 4>whole Nvidia, Taiwan Semiconductor, you know, Microsoft, you name, you

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<v Speaker 4>name the participant or the leader in this in this shift,

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<v Speaker 4>I still think there's room to run and when it's

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<v Speaker 4>consistently justified with quarterly sales growth, year sales growth, you know,

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<v Speaker 4>the margins that they're seeing. I do think it's important

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<v Speaker 4>for investors to really think about why utilities are running

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<v Speaker 4>and you know, we want to make sure that the

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<v Speaker 4>electrical grid can support all these data centers that all

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<v Speaker 4>these chips are going to populate.

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<v Speaker 3>Yeah, it's a good point that there are a lot

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<v Speaker 3>of companies that are not buying AI, you know, and

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<v Speaker 3>having to expense that they're selling into it. John, thank

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<v Speaker 3>you for joining us. John Lynch, cio at Camerica Wealth Management.

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<v Speaker 3>Let's bring in John Bianco now partner and investment strategists

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<v Speaker 3>that bond blocks to take a closer look. So there

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<v Speaker 3>was quite a lot of turbulence in France, in particular

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<v Speaker 3>with the route in French bonds, and I guess quite

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<v Speaker 3>a few people are angered that Emmanuel Macrone called that

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<v Speaker 3>snap election, with Bruno Lamier warning that France could be

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<v Speaker 3>plunged into a debt crisis if Marine leapenn or to

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<v Speaker 3>win the elections. I'm just curious about your thinking about

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<v Speaker 3>whether that impacted the fairly strong bond auction we saw

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<v Speaker 3>in the US.

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<v Speaker 5>It's very possible that it did affect our bond auction here,

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<v Speaker 5>but it's also possible that, you know, sometimes bond auctions

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<v Speaker 5>go better than other times, and today was just a

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<v Speaker 5>day where there was strong demand for whatever reason.

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<v Speaker 2>Hey, Joe, and I'm hoping you brought your crystal ball

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<v Speaker 2>with you or it's right there next to you at

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<v Speaker 2>the desk. Give me a sense of what we're going

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<v Speaker 2>to see tomorrow, first with the CPI and then what

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<v Speaker 2>we're going to hear from the Fed.

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<v Speaker 5>Yeah, it's going to be a big day tomorrow in

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<v Speaker 5>terms of market events, with the CPI releases and the

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<v Speaker 5>f o MC rate decision. I think that, you know,

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<v Speaker 5>no matter what we see in terms of the CPI release,

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<v Speaker 5>it's not like inflation is handled. Maybe we could continue

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<v Speaker 5>to see some progress, but we're not at the point

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<v Speaker 5>where we think that there will be a rate cut.

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<v Speaker 5>Obviously announced tomorrow or even the July meeting. September would

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<v Speaker 5>be potentially the first time that we could see a

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<v Speaker 5>rate cut. But even then now the probability is less

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<v Speaker 5>than fifty percent that we would see a rate cut

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<v Speaker 5>in September, So it may not be until December of

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<v Speaker 5>this year where we see the first rate cut.

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<v Speaker 3>It's a double header tomorrow that I'd buy a ticket

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<v Speaker 3>to see for sure. In fact, we'll have to be

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<v Speaker 3>talking a lot about it on the show. How would

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<v Speaker 3>you like to have Jerome Pal's job trying to explain

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<v Speaker 3>what's really going on in the jobs market looking at

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<v Speaker 3>the huge difference between what we saw in the establishment

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<v Speaker 3>survey versus the household survey.

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<v Speaker 5>Yeah, exactly. It's not an easy job that he has.

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<v Speaker 5>But I would just say that in general, even though

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<v Speaker 5>there can be some weaker numbers some stronger numbers, overall

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<v Speaker 5>employment and payroll numbers are holding in at strong enough

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<v Speaker 5>levels they're not really a real cause for concern, meaning

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<v Speaker 5>that the Fed would have to consider cutting rates tomorrow.

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<v Speaker 2>So do you believe that there are still opportunities in

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<v Speaker 2>the bond market. I mean, I'm imagining that if you

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<v Speaker 2>think the Fed could go twenty five maybe fifty basis

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<v Speaker 2>points before the end of the year. That just on

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<v Speaker 2>the basis of a capital gain that you may receive,

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<v Speaker 2>there are opportunities. Am I right on that? And if so,

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<v Speaker 2>I mean, what part of the curve are you're playing here?

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<v Speaker 5>Yeah, No, we think there are a lot of opportunities

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<v Speaker 5>in fixed income right now. We certainly see opportunities still

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<v Speaker 5>in the credit markets in investment grade corporates, particularly triple

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<v Speaker 5>B corporates, also high yield corporates, just because we do

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<v Speaker 5>have this continued strong, these continued strong fundamentals for US corporations,

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<v Speaker 5>and that is something that we have elevated yields. So

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<v Speaker 5>and if the majority of the return for fixed income

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<v Speaker 5>is from coupon income, you know you're getting you could

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<v Speaker 5>get elevated returns in credit because of the elevated coupons.

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<v Speaker 5>In terms of how we feel about treasuries, we're still

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<v Speaker 5>kind of sticking to our view to focus on short

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<v Speaker 5>to intermediate duration exposures. There it's you know, the short exposures,

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<v Speaker 5>there's definitely I mean, you still are experiencing income in

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<v Speaker 5>the in the low five percent range and they have

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<v Speaker 5>lower volatility versus longer duration. US treasuries, but we also

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<v Speaker 5>think that it's time to do some stepping out in

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<v Speaker 5>terms of duration in order to capture not only attractive yields,

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<v Speaker 5>but price returns that would result from potential fed actions.

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<v Speaker 3>I'm a little curious about your high yield choices and

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<v Speaker 3>wondering whether or not you're at the aggressive end or

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<v Speaker 3>at maybe the more risky end. Given you what you

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<v Speaker 3>see in commercial real estate.

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<v Speaker 5>The high yield market has held up very well in

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<v Speaker 5>terms of the fundamentals. We're still at interest coverage ratios

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<v Speaker 5>and leverage ratios that we saw not since before the pandemic.

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<v Speaker 5>There's been some softening, but in general we're not seeing

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<v Speaker 5>a big way of downgrades. We're only really seeing one

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<v Speaker 5>industry that is experiencing more distress TMT, but a number

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<v Speaker 5>of the other industries are doing quite well. And in

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<v Speaker 5>terms of the rating categories, I mean, it just depends

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<v Speaker 5>on where you want to be in the risk spectrum.

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<v Speaker 5>If you want less a risk, then you would probably

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<v Speaker 5>focus on double bs and they can be a great addition.

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<v Speaker 3>Sounds good. Thanks very much for joining us here live

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<v Speaker 3>on the program. Join Bianco partner and investment strategist at

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<v Speaker 3>Bond Blocks looking at China's consumer prices rising a little

0:13:25.600 --> 0:13:29.640
<v Speaker 3>in May, still holding above zero. Is the fourth consecutive

0:13:29.640 --> 0:13:32.520
<v Speaker 3>month that we've seen that the CPI reading of zero

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<v Speaker 3>point three percent year on year, the survey estimate was

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<v Speaker 3>for zero point four percent, and in terms of PPI

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<v Speaker 3>still locked in deflation with a contraction of one point

0:13:43.679 --> 0:13:46.199
<v Speaker 3>four percent. That was a little better than the survey

0:13:46.360 --> 0:13:49.920
<v Speaker 3>estimate of minus one point five percent, and quite a

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<v Speaker 3>bit better than what we saw the prior month in April,

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<v Speaker 3>where we were down two and a half percent. Joining

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<v Speaker 3>us now is Vanessa Chan, head of Asian Fixed Income

0:13:57.360 --> 0:14:01.400
<v Speaker 3>Investments Fidelity International. So I guess not too much of

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<v Speaker 3>a surprise, Venessa with these inflation numbers in China, but

0:14:06.200 --> 0:14:09.000
<v Speaker 3>it kind of suggests and shows that it's a long

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<v Speaker 3>road ahead to get back to normalcy.

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<v Speaker 1>Yes, indeed, I think, as you mentioned, the numbers is

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<v Speaker 1>probably a little bit better than market expected, kind of

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<v Speaker 1>slightly fainted improvement. Quoting some of your colleagues earlier on

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<v Speaker 1>what we're looking at is our longer term beyond China

0:14:29.480 --> 0:14:33.080
<v Speaker 1>is a control stabilization. In general, we're looking at a

0:14:33.120 --> 0:14:36.840
<v Speaker 1>GDP of five percent. Infation is probably likely to kind

0:14:36.840 --> 0:14:41.760
<v Speaker 1>of hoover the relatively low level. What we've seen recently

0:14:41.800 --> 0:14:44.360
<v Speaker 1>is some of the policy that's been implemented, such as

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<v Speaker 1>the kind of Outra Lung bond, which aimed to putting

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<v Speaker 1>more momentum or investment into the longer term infrastructure projects.

0:14:53.320 --> 0:14:57.600
<v Speaker 1>Were also seeing policy related to property in terms of relaxation,

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<v Speaker 1>and all of these is really trying to regain some

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<v Speaker 1>of the growth momentum, particularly related to the ontore market,

0:15:05.160 --> 0:15:09.040
<v Speaker 1>in order to help the kind of gradual improvement that

0:15:09.160 --> 0:15:11.880
<v Speaker 1>is expected from the central government on the domestic consumption side.

0:15:11.880 --> 0:15:12.160
<v Speaker 3>As well.

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<v Speaker 2>Domestic consumption, I think there's a big question mark over that.

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<v Speaker 2>What seems clear is that the economy is still very

0:15:19.480 --> 0:15:21.280
<v Speaker 2>reliant on exports.

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<v Speaker 3>Is it not?

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<v Speaker 1>Yes, But I think we recognize the economy traditionally have

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<v Speaker 1>been relying on I would say two things one well

0:15:30.280 --> 0:15:35.520
<v Speaker 1>three maybe property, infrastructure, and also export. There's a very

0:15:35.520 --> 0:15:39.760
<v Speaker 1>strong intention from the central government of the gradual structure

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<v Speaker 1>change for the Chinese economy to kind of bring it

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<v Speaker 1>back to more domestic consumption and manufacturing. So what we've

0:15:46.960 --> 0:15:51.320
<v Speaker 1>seen is a kind of gradual improvement on the consumption,

0:15:51.400 --> 0:15:56.080
<v Speaker 1>particularly on the surfaces side. We also see Chinese customer

0:15:56.160 --> 0:15:59.640
<v Speaker 1>looking for a good value of products, and then the

0:15:59.680 --> 0:16:02.720
<v Speaker 1>saving rates continue to be still quite high as well,

0:16:02.760 --> 0:16:06.840
<v Speaker 1>which allowed potential longer term growth in terms of the

0:16:06.840 --> 0:16:10.440
<v Speaker 1>consumption side. The other side I think is getting more

0:16:10.440 --> 0:16:14.840
<v Speaker 1>interesting is that China it's moving away from producing lower

0:16:14.920 --> 0:16:18.880
<v Speaker 1>value products to more higher value products, and this will

0:16:18.920 --> 0:16:22.160
<v Speaker 1>probably means that it will help it to kind of

0:16:22.200 --> 0:16:26.120
<v Speaker 1>broaden the export horizon. As you may see, they continue

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<v Speaker 1>to be kind of building on capacity or capabilities related

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<v Speaker 1>to green investments, evy vehicles, solar panels, batteries, and these

0:16:34.720 --> 0:16:37.680
<v Speaker 1>are some of the areas that they've been striving to

0:16:37.760 --> 0:16:41.480
<v Speaker 1>become stronger, both in terms of manufacturing export as well.

0:16:41.840 --> 0:16:45.600
<v Speaker 3>Vanessa, we reported a while ago that PPI in Japan

0:16:45.920 --> 0:16:49.120
<v Speaker 3>was up two point four percent a year on year numbers,

0:16:49.240 --> 0:16:51.280
<v Speaker 3>and that was better than the survey estmen or higher

0:16:51.280 --> 0:16:54.120
<v Speaker 3>than the survey estim It could be good for corporates.

0:16:54.160 --> 0:16:58.040
<v Speaker 3>I suppose in Japan month on month it was also

0:16:58.120 --> 0:17:01.080
<v Speaker 3>stronger than the survey estimate up here point seven percent,

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<v Speaker 3>and perhaps it's making a little easier on the Bank

0:17:04.880 --> 0:17:07.359
<v Speaker 3>of Japan. But I'm not sure if these numbers are

0:17:07.400 --> 0:17:11.320
<v Speaker 3>even strong enough to be auguing for any kind of

0:17:11.680 --> 0:17:14.600
<v Speaker 3>rate hike in the very near future. What are you

0:17:14.600 --> 0:17:15.600
<v Speaker 3>expecting from the BOA.

0:17:15.920 --> 0:17:19.160
<v Speaker 1>I think you're spot on if you look at the

0:17:19.200 --> 0:17:23.160
<v Speaker 1>market expectations, they do expect there's going to do two

0:17:23.200 --> 0:17:26.119
<v Speaker 1>hikes before they end of the twenty twenty four but

0:17:26.800 --> 0:17:30.360
<v Speaker 1>looking closer in terms of the next meeting, we probably

0:17:30.400 --> 0:17:33.880
<v Speaker 1>an likely to see a hike in the new future,

0:17:34.320 --> 0:17:36.960
<v Speaker 1>reason being one of the key factors that the wage

0:17:37.040 --> 0:17:40.600
<v Speaker 1>growth is still actually fairly gradual, and if you look

0:17:40.640 --> 0:17:43.000
<v Speaker 1>at the wage growth percentage is still in the negative,

0:17:43.480 --> 0:17:47.480
<v Speaker 1>so the wage and inflation dynamics is probably haven't been

0:17:47.840 --> 0:17:51.320
<v Speaker 1>quite in line with the expectations that BOJ have laid out.

0:17:52.359 --> 0:17:55.800
<v Speaker 1>If anything, it's probably for an opportunity for BOG to

0:17:55.880 --> 0:17:59.800
<v Speaker 1>continue to communicate to the market and manage the market

0:17:59.800 --> 0:18:04.040
<v Speaker 1>expectation and paving away for gradual normalization when it comes

0:18:04.119 --> 0:18:04.600
<v Speaker 1>to rates.

0:18:05.560 --> 0:18:05.800
<v Speaker 3>Yeah.

0:18:05.960 --> 0:18:06.200
<v Speaker 5>Oh.

0:18:06.280 --> 0:18:09.280
<v Speaker 2>I think the other question here is on the persistent

0:18:09.359 --> 0:18:11.600
<v Speaker 2>weakness in the end and whether there's been a conversation

0:18:11.680 --> 0:18:14.920
<v Speaker 2>between the Ministry of Finance and the BOJ about doing

0:18:14.960 --> 0:18:19.320
<v Speaker 2>something to reduce the level of importation of inflation into

0:18:19.320 --> 0:18:22.000
<v Speaker 2>the Japanese economy because at the consumer level, I think

0:18:22.040 --> 0:18:25.159
<v Speaker 2>consumers are feeling that pinch. Is that wrong headed?

0:18:26.200 --> 0:18:29.919
<v Speaker 1>I think if you think about on the macro fond,

0:18:31.200 --> 0:18:34.000
<v Speaker 1>it's probably unlikely that BOJ is going to have much actions.

0:18:34.080 --> 0:18:38.400
<v Speaker 1>I think the weaknesses on yen could be a consideration.

0:18:38.560 --> 0:18:40.199
<v Speaker 1>But if you kind of hinges back in terms of

0:18:40.240 --> 0:18:43.840
<v Speaker 1>the role of BOJ is really kind of looking at

0:18:43.880 --> 0:18:47.440
<v Speaker 1>inflation other than thinking about the foreign currency. So that's

0:18:47.520 --> 0:18:51.520
<v Speaker 1>probably where the kind of roles and responsibility definition would

0:18:51.600 --> 0:18:52.000
<v Speaker 1>kind of win.

0:18:52.119 --> 0:18:56.080
<v Speaker 3>I would say we're also pointing towards the CPI report

0:18:56.080 --> 0:18:58.359
<v Speaker 3>in the United States coming up tomorrow, that's going to

0:18:58.400 --> 0:19:01.760
<v Speaker 3>be a big one. Are expecting those numbers to surprise

0:19:02.240 --> 0:19:04.320
<v Speaker 3>much or to come in fairly close.

0:19:04.119 --> 0:19:07.320
<v Speaker 1>To in line I think. I think the market expectation

0:19:07.359 --> 0:19:09.560
<v Speaker 1>of the general expectation is probably be coming fairly close

0:19:09.600 --> 0:19:13.400
<v Speaker 1>in line with consensus. I think what is quite interesting

0:19:13.440 --> 0:19:15.240
<v Speaker 1>as well is that dialing a little bit back for

0:19:15.440 --> 0:19:18.199
<v Speaker 1>last week, we have a fairly interesting week where we

0:19:18.240 --> 0:19:23.119
<v Speaker 1>see some weakening of the labor data, but subsequently followed

0:19:23.119 --> 0:19:26.760
<v Speaker 1>by a very relatively upside surprises on the lone. Fampeiro

0:19:26.880 --> 0:19:29.600
<v Speaker 1>and I think inflation will continue to be a key

0:19:29.680 --> 0:19:32.840
<v Speaker 1>thing to watch when you come to the actions as well.

0:19:33.200 --> 0:19:35.800
<v Speaker 3>Vanessa, thank you for coming into our studios with us

0:19:35.880 --> 0:19:38.760
<v Speaker 3>live here on the radio. Vanessa Chan, head of Asian

0:19:38.880 --> 0:19:42.120
<v Speaker 3>Fixed Income Investments at Fidelity International.

0:19:44.880 --> 0:19:47.800
<v Speaker 2>This has been the Bloomberg Daybreak Asia podcast, bringing you

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<v Speaker 2>the stories making news and moving markets in the Asia Pacific.

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