WEBVTT - China Eco Measures, Beijing/France Talks

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<v Speaker 1>Good morning. I'm Brian Curtis and I'm Doug Krisner. Here

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<v Speaker 1>are the stories we're following today.

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<v Speaker 2>Minneapolis FED President Neil Kashkari says the US will likely

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<v Speaker 2>have a slowing economy, but the country will avoid a recession.

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<v Speaker 2>He told CBS has faced the nation that US inflation.

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<v Speaker 3>The outlook is quite positive.

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<v Speaker 4>The economy continues to surprise how resilient it is. That's

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<v Speaker 4>a really good thing. The unemployment rate is still very

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<v Speaker 4>low at three point six percent. Nonetheless, I'm not going

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<v Speaker 4>to dismiss the hardship that Americans are feeling. High inflation

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<v Speaker 4>for several years has really put a dent in people's pocketbooks.

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<v Speaker 4>We're now starting to dig our way out of that,

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<v Speaker 4>so we're making progress.

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<v Speaker 2>Despite the positive inflation data. Kashkari said that the fed's

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<v Speaker 2>aggressive tightening campaign ending it won't end without job losses.

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<v Speaker 2>He said unemployment may reach four percent. On Friday, we'll

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<v Speaker 2>get the closely watched US jobs report. It's projected to

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<v Speaker 2>show that higher increase at a healthy, yet more moderate clip.

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<v Speaker 2>Kashkari said that the FED will remain data dependent as

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<v Speaker 2>it decides whether more rate hikes are in the car well.

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<v Speaker 1>As mentioned earlier, it's going to be a big week

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<v Speaker 1>for US earnings, including megacap Tech the story from Bloomberg's

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<v Speaker 1>Denise Pellegrini.

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<v Speaker 5>Apple and Amazon are both scheduled to report quarterly results

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<v Speaker 5>after the closing bell Thursday. Investors will be watching for

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<v Speaker 5>more about Apple asking suppliers to keep iPhone shipments flat.

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<v Speaker 5>You're on your We're also hearing Apple expects revenue to

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<v Speaker 5>grow through price hikes for iPhone Pro models instead going forward.

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<v Speaker 5>Apple's reliance on Chinese manufacturing is also of concern because

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<v Speaker 5>of sour relations between Washington and Beijing, and also investors

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<v Speaker 5>will be interested in anything Apple has to say about AI.

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<v Speaker 5>As for Amazon, Bloomberg Intelligence says, watch to see if

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<v Speaker 5>strength and streaming and advertising will be offset by slowing

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<v Speaker 5>consumer and enterprise spending. Also, anything about online shopping and

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<v Speaker 5>Amazon's push into pharmacy and grocery will be of interest. Shopify, PayPal, Qualcom,

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<v Speaker 5>Western Digital, and Advanced micro Devices also report this coming week,

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<v Speaker 5>along with Pfizer and merc Denise Pelgriny Bloomberg day Break Asia.

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<v Speaker 2>US banks have been told to step up their contingency

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<v Speaker 2>funding roadmaps. We get that story from Bloomberg's and Kate's.

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<v Speaker 6>Agencies, including the Federal Reserve and the FDIC, have told

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<v Speaker 6>lenders to review their plans for filling funding needs in

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<v Speaker 6>times of stress to ensure they have access to a

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<v Speaker 6>range of liquidity sources. The issue was spotlighted by the

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<v Speaker 6>collapse of Silicon Valley Bank earlier this year. The guidance

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<v Speaker 6>is part of a bid by federal regulators to encourage

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<v Speaker 6>financial institutions to incorporate the Fed's discount window as part

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<v Speaker 6>of their contingency planning. In Washington and Kates Bloomberg Day

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<v Speaker 6>Break Asia.

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<v Speaker 1>We go to China next, where the government says it

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<v Speaker 1>will soon announce new measures to boost consumption the story

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<v Speaker 1>from Bloomberg's Boneou in Hong Kong.

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<v Speaker 7>These new directives follow a slew of other policies unfailed

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<v Speaker 7>in recent weeks to revived economy growth. Momentum weakened in

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<v Speaker 7>the second quarter as the property markets slumped. Just Friday,

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<v Speaker 7>China laid out the plan to boost consumer industries. It

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<v Speaker 7>also pushed efforts to grow an exchange dedicated to helping

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<v Speaker 7>small firms get access to funds. Earlier this month, measures

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<v Speaker 7>were introduced to lift sales of cars electronic products and

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<v Speaker 7>rural consumption. The new consumption package will be announced this

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<v Speaker 7>afternoon in Beijing. In Hong Kong, I'm Bonnie Olt Bloomberg

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<v Speaker 7>day Break Asia.

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<v Speaker 2>Meantime, Francis Finance Minister Bruno Lamarre has called on Chinese

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<v Speaker 2>companies to invest more in Europe. Bloomberg's Joan Wong has

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<v Speaker 2>that story from Hong Kong.

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<v Speaker 8>Lamire said his talks in Beijing were positive on a

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<v Speaker 8>variety of topics such as agro industry, finance, and electric vehicles.

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<v Speaker 8>He singled out EV's and other sectors that would help

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<v Speaker 8>fight climate change. The two countries said they'd work together

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<v Speaker 8>on improving the regulatory environment surrounding cosmetics and data. Address

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<v Speaker 8>concerns over intellectual property rights of French companies in China.

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<v Speaker 8>Lamire said he wants to get better access in China.

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<v Speaker 5>He added that.

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<v Speaker 8>Decoupling is not possible. More meetings will be held in

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<v Speaker 8>France before the end of the year. In Hong Kong,

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<v Speaker 8>I'm joining Bloomberg day Break Asia.

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<v Speaker 2>And on that Bruno Lamier said that de risking with

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<v Speaker 2>China doesn't mean that China is risk so that's a

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<v Speaker 2>further sort of softening of this whole idea of how

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<v Speaker 2>much words matter in how countries characterize they're dealing with China.

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<v Speaker 2>So if you're de risking and China's not a risk,

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<v Speaker 2>I suppose that's just what diversification.

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<v Speaker 1>It's going to be very interesting to see what the

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<v Speaker 1>government rolls out in terms of this new stimulus. And

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<v Speaker 1>I was struck by the news last Friday, Brian, As

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<v Speaker 1>I'm sure you're well aware that the Security Regulatory Commission

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<v Speaker 1>in China unveiled proposal to loosen some of the limits

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<v Speaker 1>on market makers for the Beijing Stock Exchange. Now, this

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<v Speaker 1>exchange was launched back in twenty twenty one, and the

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<v Speaker 1>aim here was to create a broader financing for some

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<v Speaker 1>of the small firms, particularly tech startups. And I'm wondering

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<v Speaker 1>whether the government now is really leaning in on trying

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<v Speaker 1>to revitalize the entrepreneurial spirit a little bit more.

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<v Speaker 2>Well, that for sure, But to even have them push

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<v Speaker 2>out measures focused on markets, on stocks and the bond

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<v Speaker 2>market even is really quite surprising because it's not something

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<v Speaker 2>that we've been used to, at least under this regime.

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<v Speaker 2>And then if you look at the environment in the US,

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<v Speaker 2>we have a piece running which I think is quite interesting.

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<v Speaker 2>People can look for on the terminal that the year

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<v Speaker 2>that was supposed to be the year of the bond

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<v Speaker 2>market has completely changed. Now it's being overrun by all

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<v Speaker 2>this demand for equities, and that has launched a rally

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<v Speaker 2>right through the world. And it sort of starts to

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<v Speaker 2>make you think whether there's a new wall of worry

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<v Speaker 2>to climb investors worried about how much equities have rally.

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<v Speaker 1>Speaking of walls of worry, another story from the Bloomberg

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<v Speaker 1>terminal about Chinese firms lining up to invest in South

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<v Speaker 1>Korea's battery industry. Now the aim here is to kind

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<v Speaker 1>of get around the Biden administration's efforts to limit China's

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<v Speaker 1>involvement in the ev supply chain of That was pretty interesting.

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<v Speaker 2>Yeah, another story that we can spend some time on

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<v Speaker 2>this morning. And then there's this one that the new

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<v Speaker 2>Barbie film is reigniting discussion in China about feminism and

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<v Speaker 2>women's rights. And as you know, there's not much in

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<v Speaker 2>the way of roles for women in the power structure

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<v Speaker 2>in China, so it comes at an interesting and opportune time.

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<v Speaker 3>Now it's time for global news.

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<v Speaker 2>Germany is warning officials its own officials that China is

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<v Speaker 2>stepping up spying in the country. At Baxter has Global

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<v Speaker 2>News from the nine to sixty newsroom in San Francisco.

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<v Speaker 9>Ed.

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<v Speaker 10>Yeah, when you go see Barbie, Brian, We're endeavoring to

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<v Speaker 10>get your doll to take in with you.

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<v Speaker 3>I'd loved it, love it, and I'll wear a pink

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<v Speaker 3>T shirt.

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<v Speaker 2>There you go.

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<v Speaker 10>Okay, yeah, as you say. Germany warning its officials about

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<v Speaker 10>China stepping up spying notice as China significantly stepped up

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<v Speaker 10>efforts to obtain intelligence information in recent years and has

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<v Speaker 10>built up a worldwide network of contacts and is constantly

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<v Speaker 10>striving to expand. It also warned companies of caution and

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<v Speaker 10>restraint in any active activities that could be interpreted as

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<v Speaker 10>cooperation with a foreign secret service. China also getting a

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<v Speaker 10>lot of attention on the US campaign trail, as well

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<v Speaker 10>as a battle against fentanyl as well. A Republican Canada

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<v Speaker 10>for President and former UN ambassador Niki Haley says the

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<v Speaker 10>China military prowess continues to be built, continues to buy

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<v Speaker 10>up US soil and property. She says that must stop.

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<v Speaker 11>We wouldn't allow them to buy us soil. We would

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<v Speaker 11>take the land that they bought back from them. We

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<v Speaker 11>would go and say, no more, are we selling any

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<v Speaker 11>sort of sensitive technologies that allow them to build up

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<v Speaker 11>their military and threaten the US. We would stop that.

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<v Speaker 11>We would tell our universities you either take Chinese money

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<v Speaker 11>or American money, but the days of taking both are over,

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<v Speaker 11>and we'd get that Chinese infiltration out.

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<v Speaker 9>Yeah.

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<v Speaker 10>She says she would ban Chinese companies from having access

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<v Speaker 10>to sensitive technologies, not do business with any companies involved

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<v Speaker 10>in technology theft. As for fentanyl on CBS, facination has

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<v Speaker 10>heard here on Bloomberg says it must be addressed number one.

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<v Speaker 11>Cause of debt for adults eighteen to forty nine. Margaret

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<v Speaker 11>is fentanyl. And don't think for a second China doesn't

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<v Speaker 11>know what they're doing. So what I would do is

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<v Speaker 11>say to China, we will end all normal trade relations

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<v Speaker 11>with you when until you stop killing Americans.

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<v Speaker 10>Center Majority Leader Chuck Schumer today says a bill that

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<v Speaker 10>will dent fentanyl trafficking is ready to go.

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<v Speaker 12>For years, Chinese laboratories have been cooking up formulas of

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<v Speaker 12>death and freely trafficking legal sentinel across New York and

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<v Speaker 12>the United States, and this legislation can stop them dead

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<v Speaker 12>in their track.

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<v Speaker 10>Schumer says the bill will allow the president to declare

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<v Speaker 10>a state of emergency with the ability to putting sanctions

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<v Speaker 10>on China and on Mexico as well. US will give

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<v Speaker 10>Taiwan three hundred and forty five million dollars in armed

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<v Speaker 10>services and training, using a fast track authority that has

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<v Speaker 10>relied on to speed up arms the Ukraine, US and

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<v Speaker 10>Australia have reached an agreement to expand the US military

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<v Speaker 10>footprint as both countries bolster defense ties and response to China.

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<v Speaker 10>China Central Government telling local affair in Beijing and other

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<v Speaker 10>areas of the North to be prepared for flooding. Donald

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<v Speaker 10>Trump's Political Action Committee spent forty point two million dollars

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<v Speaker 10>on legal costs in the first half of this year.

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<v Speaker 10>Bloomberg sources say the group Save America set to disclose

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<v Speaker 10>the amount and of filing tomorrow. New York Times says

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<v Speaker 10>the money is significant enough that it could cause a

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<v Speaker 10>potential money crisis for the campaign. Global News powered by

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<v Speaker 10>more than twenty seven hundred journalists and analysts in over

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<v Speaker 10>one hundred and twenty countries. In San Francisco, I'm Ed Baxter,

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<v Speaker 10>and this is Bloomberg.

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<v Speaker 2>I'm Brian Curtis in Hong Kong, along with Rashad Salomat

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<v Speaker 2>in London, and our guest is Steve Sasnik, chief strategist

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<v Speaker 2>at Interactive Brokers. Steve, I almost don't know where to start.

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<v Speaker 2>We've got a pretty quiet vis at thirteen. We've got

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<v Speaker 2>the bond market that's been pretty steady here of late,

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<v Speaker 2>trapped with yields trapped in a tight range, equities that

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<v Speaker 2>have been pretty positive. We talked about how there might

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<v Speaker 2>be a new wall of worry, and that being that

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<v Speaker 2>equities have gained too much too soon.

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<v Speaker 3>How do you stand on that point?

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<v Speaker 9>Well, good morning, Brian, and thanks as always for having me.

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<v Speaker 9>You know, I'm actually sort of of that same belief

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<v Speaker 9>that you know, the thing we have to fear most

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<v Speaker 9>is the lack of fear. You know, I if you

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<v Speaker 9>go back to the old saying, be greedy when others

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<v Speaker 9>are fearful, and be fearful when others are greedy, well,

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<v Speaker 9>you know, I think we're at a very greedy period

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<v Speaker 9>right now and with very little fear being displayed. And

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<v Speaker 9>and you you know, there's a million many different ways

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<v Speaker 9>to do it, vics being one, and probably the most prominent,

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<v Speaker 9>but that that starts to be concerning.

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<v Speaker 13>Is it time? Then if it is concerning, Steve to

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<v Speaker 13>perhaps change your out, perhaps look elsewhere, perhaps look a

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<v Speaker 13>different asset classes, emerging markets instead.

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<v Speaker 9>Rashard, I think that's that's I think one should always

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<v Speaker 9>be looking at alternatives. I think, you know, especially when

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<v Speaker 9>something's been working so well for so long, you know,

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<v Speaker 9>it's tough to move away. It's tough to it's tough

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<v Speaker 9>to fight the momentum. And I'm not really saying do that,

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<v Speaker 9>but yes, I think that makes sense. I think if

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<v Speaker 9>nothing else, you know, you have ten year US yields

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<v Speaker 9>above four percent, you have you know, short term rates

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<v Speaker 9>you know at five or or you know the very

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<v Speaker 9>short term rates above five. So there is an alternative.

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<v Speaker 9>There are places to put your money that that that

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<v Speaker 9>can be safe if you think that stuff is going

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<v Speaker 9>to come up. And we are, you know, a month

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<v Speaker 9>away from what's always been a seasonally tricky time for

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<v Speaker 9>global equities, particularly in the US.

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<v Speaker 2>Does it feel a little like it's still going to

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<v Speaker 2>run though for a while, maybe through August and then

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<v Speaker 2>maybe then the mood might change.

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<v Speaker 9>It does feel that way, you know it Right now?

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<v Speaker 9>The momentum is so strong, and and you know, for example,

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<v Speaker 9>we you know, we had that big bounce back on Friday,

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<v Speaker 9>but you know, after the boj move, but it turns out,

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<v Speaker 9>you know, the kind of little mini free week out

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<v Speaker 9>we had Thursday afternoon was I think many ways emblematic

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<v Speaker 9>of what happens when people are caught off guard. And

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<v Speaker 9>I think so many people you know, are on one

0:12:09.960 --> 0:12:12.880
<v Speaker 9>side of the trade right now, you know, they really

0:12:12.920 --> 0:12:16.760
<v Speaker 9>flipped out, you know, Thursday after noon. Yeah, very short periods.

0:12:16.760 --> 0:12:19.079
<v Speaker 9>I'm not necessarily even knowing why, because I don't think

0:12:19.080 --> 0:12:22.480
<v Speaker 9>everybody fully appreciated that it was the Nikai story driving

0:12:22.720 --> 0:12:24.000
<v Speaker 9>driving the market lower here.

0:12:24.120 --> 0:12:26.920
<v Speaker 13>Oh, certainly before and everybody knew what was going on

0:12:27.000 --> 0:12:28.960
<v Speaker 13>with the Nike report, but they didn't know exactly what

0:12:29.040 --> 0:12:31.200
<v Speaker 13>was going to come out, And with the gyrations of

0:12:31.240 --> 0:12:33.920
<v Speaker 13>the market gave you a sense that, hang on a second,

0:12:34.559 --> 0:12:38.360
<v Speaker 13>are they or are they not abandoning YCC. In many ways,

0:12:38.400 --> 0:12:40.720
<v Speaker 13>this is the first, the precursor to them doing it,

0:12:40.760 --> 0:12:42.400
<v Speaker 13>but really it couldn't make sense of it. And I

0:12:42.480 --> 0:12:45.040
<v Speaker 13>think that the Yen's behavior of a course of about

0:12:45.040 --> 0:12:46.839
<v Speaker 13>twenty minutes is actually emblematic of that.

0:12:47.720 --> 0:12:51.360
<v Speaker 9>Yeah, I mean, I think it's fascinating because last I

0:12:51.400 --> 0:12:55.400
<v Speaker 9>guess two fridays ago, you know, I was on I

0:12:55.440 --> 0:12:58.040
<v Speaker 9>was actually on Bloomberg Television in the States and in

0:12:58.080 --> 0:13:00.640
<v Speaker 9>the UK, and you know, it was right after there

0:13:00.679 --> 0:13:04.000
<v Speaker 9>was a different story saying that they weren't going to

0:13:04.120 --> 0:13:07.320
<v Speaker 9>change their ICC policy at all, and so you know,

0:13:07.360 --> 0:13:09.200
<v Speaker 9>I was asked and I said, oh, you know, boj

0:13:09.360 --> 0:13:11.160
<v Speaker 9>should be the most interesting one, but it seems like

0:13:11.200 --> 0:13:14.160
<v Speaker 9>they won't be. Then you know, then fast forward a

0:13:14.160 --> 0:13:17.040
<v Speaker 9>week and you know, you know, they they they do

0:13:17.120 --> 0:13:19.560
<v Speaker 9>what they said, they weren't what was reported they weren't

0:13:19.559 --> 0:13:22.240
<v Speaker 9>going to do originally, and the market's just flipped out

0:13:22.240 --> 0:13:24.960
<v Speaker 9>there they're having it was it was very minor uncertainty,

0:13:25.000 --> 0:13:28.960
<v Speaker 9>but it's interesting how how spooked, you know, some real

0:13:29.040 --> 0:13:32.440
<v Speaker 9>uncertainty got the marketplace. And not to me, it doesn't

0:13:32.480 --> 0:13:34.800
<v Speaker 9>mean that it's time to abandon ship, but it tells

0:13:34.800 --> 0:13:37.400
<v Speaker 9>me you've got to be a lot more wary because

0:13:37.640 --> 0:13:43.760
<v Speaker 9>because people really do react very We turned from we

0:13:43.800 --> 0:13:46.680
<v Speaker 9>turned from greed to fear very very quickly. Do you

0:13:46.679 --> 0:13:48.000
<v Speaker 9>think turn it right around again?

0:13:48.480 --> 0:13:52.000
<v Speaker 2>Can we sniff out a little bit of coordination efforts

0:13:52.000 --> 0:13:56.240
<v Speaker 2>here between or among the FED the ECB and the BOJ,

0:13:56.520 --> 0:13:59.000
<v Speaker 2>because it looks like you've got the Fed and the

0:13:59.000 --> 0:14:02.600
<v Speaker 2>ECB maybe moving into a little bit of of an easing,

0:14:03.000 --> 0:14:06.679
<v Speaker 2>not not necessarily easing, but easier than where they were,

0:14:07.080 --> 0:14:10.200
<v Speaker 2>and that maybe, you know, they're always worried about markets

0:14:10.240 --> 0:14:12.640
<v Speaker 2>running up, so maybe it's time for the BOJ to

0:14:12.800 --> 0:14:16.559
<v Speaker 2>hint at just hint at getting a little bit more hawkish.

0:14:17.840 --> 0:14:20.640
<v Speaker 9>Yeah, well, I mean, the BOJ you know, sort of

0:14:20.640 --> 0:14:24.720
<v Speaker 9>the last easy central bank, you know, left Domino to fall,

0:14:24.840 --> 0:14:27.560
<v Speaker 9>so to speak. You know, I think the rhetoric coming

0:14:27.560 --> 0:14:30.640
<v Speaker 9>out of the Fed and the ECB is very much like,

0:14:31.240 --> 0:14:33.640
<v Speaker 9>you know, all right, we're not really going to raise rates,

0:14:33.640 --> 0:14:35.760
<v Speaker 9>but we're leaving it on the table. But the problem

0:14:35.880 --> 0:14:39.160
<v Speaker 9>is what they have to They have to be very

0:14:39.200 --> 0:14:43.120
<v Speaker 9>assiduous in their rhetoric because traders, if traders hear that

0:14:43.240 --> 0:14:46.200
<v Speaker 9>there's some chance that they might not raise rates or

0:14:46.200 --> 0:14:48.640
<v Speaker 9>that they might be easing, well then they take that

0:14:48.680 --> 0:14:50.880
<v Speaker 9>to heart and run with it. And we saw that,

0:14:50.960 --> 0:14:54.280
<v Speaker 9>you know, after Powell's comments. What we saw early Thursday

0:14:54.400 --> 0:14:57.560
<v Speaker 9>was basically, you know, he said we might raise, we

0:14:57.640 --> 0:14:59.480
<v Speaker 9>might not raise, and more or less Regard said the

0:14:59.520 --> 0:15:02.240
<v Speaker 9>same thing, and the market's heard, oh we might not raise,

0:15:02.440 --> 0:15:06.280
<v Speaker 9>that's wonderful, and off we went. So they the rhetoric

0:15:06.360 --> 0:15:08.880
<v Speaker 9>will have to continue. And I think that, and now

0:15:08.920 --> 0:15:11.120
<v Speaker 9>I think it's interesting that the boj is sort of

0:15:11.160 --> 0:15:12.920
<v Speaker 9>on that same rhetorical side.

0:15:13.280 --> 0:15:13.520
<v Speaker 2>Well.

0:15:13.560 --> 0:15:16.360
<v Speaker 13>Absolutely, and it's interesting, you know, you win Powell switch

0:15:16.400 --> 0:15:19.840
<v Speaker 13>from goldilocks not to not to gold amulet to raise

0:15:19.920 --> 0:15:22.360
<v Speaker 13>or not to raise, which is what Lagarde is also echoing.

0:15:22.800 --> 0:15:24.760
<v Speaker 13>Whereas and I just want to just carry on with

0:15:24.800 --> 0:15:27.400
<v Speaker 13>the same sort of theme here, Richard. The third my

0:15:27.520 --> 0:15:30.400
<v Speaker 13>kingdom for a horse is that's what everybody in China's

0:15:30.440 --> 0:15:32.320
<v Speaker 13>screaming for with regard to stimulus.

0:15:33.360 --> 0:15:36.000
<v Speaker 9>It's not just China. I think global markets are screened,

0:15:36.000 --> 0:15:39.440
<v Speaker 9>you know they they are so eager for Chinese stimulus.

0:15:39.520 --> 0:15:42.520
<v Speaker 9>And I and you know the story, the story that

0:15:42.920 --> 0:15:45.520
<v Speaker 9>you know about the regulators calling in the brokers and

0:15:45.840 --> 0:15:48.080
<v Speaker 9>trying to prop up the market. That is the stuff

0:15:48.080 --> 0:15:50.720
<v Speaker 9>that that you know, That's that's what traders want to hear,

0:15:50.880 --> 0:15:54.840
<v Speaker 9>is you know, anything any stimulative, any stimulus. But we've

0:15:54.880 --> 0:15:57.920
<v Speaker 9>been disappointed by Chinese stimulus. Before I think everybody was

0:15:57.960 --> 0:16:02.360
<v Speaker 9>expecting this big COVID recovery would happen just organically it didn't.

0:16:02.560 --> 0:16:05.240
<v Speaker 9>I think what it hasn't happened. The markets have been

0:16:05.280 --> 0:16:08.000
<v Speaker 9>itching for some some sort of sign that that there

0:16:08.000 --> 0:16:10.560
<v Speaker 9>would be real stimulus from China, and up till now

0:16:10.600 --> 0:16:13.160
<v Speaker 9>it's been baby steps. So I think, you know, if

0:16:13.160 --> 0:16:19.400
<v Speaker 9>there's overt manipulation, overt goosing of the stock market, shall

0:16:19.440 --> 0:16:22.360
<v Speaker 9>we say, traders want to hear that sort of thing,

0:16:22.400 --> 0:16:24.640
<v Speaker 9>whether or not it's the right policy, whether or not

0:16:24.640 --> 0:16:27.800
<v Speaker 9>it's it's going to be long term effective. Any move

0:16:27.960 --> 0:16:32.280
<v Speaker 9>that stimulates markets is just being you know, wrapped up

0:16:32.600 --> 0:16:34.160
<v Speaker 9>by traders eagerly.

0:16:34.240 --> 0:16:34.960
<v Speaker 3>Yeah.

0:16:35.000 --> 0:16:38.120
<v Speaker 2>Well, Risch asked you about emerging markets earlier, and I

0:16:38.160 --> 0:16:40.440
<v Speaker 2>think we can note that EEM has had a nice

0:16:40.480 --> 0:16:43.760
<v Speaker 2>bounce here and uh and stocks like ten Cent and

0:16:43.760 --> 0:16:47.600
<v Speaker 2>Alibamba have had something like a ten percent bounce in there.

0:16:48.400 --> 0:16:52.200
<v Speaker 2>How how strong could this phase be about money? Perhaps

0:16:52.960 --> 0:16:55.040
<v Speaker 2>rather than going back to the bond mark, if it

0:16:55.120 --> 0:16:58.640
<v Speaker 2>eases out of US stocks that it feeds into emerging

0:16:58.680 --> 0:16:59.840
<v Speaker 2>market stocks.

0:17:00.120 --> 0:17:03.640
<v Speaker 9>That really becomes a question of does the risk on

0:17:03.920 --> 0:17:06.320
<v Speaker 9>trade that we're seeing broaden, and if and if it

0:17:06.359 --> 0:17:10.360
<v Speaker 9>does broaden, emerging markets are a natural beneficiary of that,

0:17:10.720 --> 0:17:15.160
<v Speaker 9>and especially if if, if we really do skirt a recession. Well,

0:17:15.280 --> 0:17:17.840
<v Speaker 9>if we skirt a recession in the you know, in

0:17:17.880 --> 0:17:20.439
<v Speaker 9>the G seven countries or at least in the US,

0:17:21.240 --> 0:17:25.240
<v Speaker 9>you know, the emerging markets are definitely benefit from that,

0:17:25.440 --> 0:17:28.000
<v Speaker 9>from that type of from that type of economic environment

0:17:28.040 --> 0:17:30.800
<v Speaker 9>and that type of risk on thinking. So yeah, you

0:17:30.920 --> 0:17:35.200
<v Speaker 9>do have to be considering, you know, smaller, smaller economies

0:17:35.280 --> 0:17:37.720
<v Speaker 9>risk on markets. You know, the dollar. You know that

0:17:37.760 --> 0:17:39.679
<v Speaker 9>the dollar is not as much of a headwind as

0:17:39.720 --> 0:17:41.400
<v Speaker 9>it's been to a lot of them as well, which

0:17:41.480 --> 0:17:45.040
<v Speaker 9>which is another good sign. So yeah, it's it's clearly

0:17:45.040 --> 0:17:46.440
<v Speaker 9>something to keep in mind.

0:17:46.840 --> 0:17:49.680
<v Speaker 2>Okay, Steve, we got really one time for one more question.

0:17:49.760 --> 0:17:52.760
<v Speaker 2>We don't want to steal too much time from Ed Baxter,

0:17:52.840 --> 0:17:56.080
<v Speaker 2>although he did have me carrying a Barbie doll into

0:17:56.680 --> 0:18:00.199
<v Speaker 2>the movie theater. But anyway, number one, pick here, what's

0:18:00.240 --> 0:18:02.119
<v Speaker 2>the best way to make money over the next few weeks.

0:18:03.600 --> 0:18:05.680
<v Speaker 9>I think what you want to do for the next

0:18:05.720 --> 0:18:08.320
<v Speaker 9>couple of weeks is start to diversify. I think if

0:18:08.359 --> 0:18:10.800
<v Speaker 9>you're in stocks and making money, I think you don't

0:18:10.800 --> 0:18:13.560
<v Speaker 9>necessarily run for the exits, but I think you start

0:18:13.560 --> 0:18:16.919
<v Speaker 9>to hedge your bets, whether that's with options or volatility

0:18:16.960 --> 0:18:20.000
<v Speaker 9>trades and moving into a little bit of fixed income,

0:18:20.280 --> 0:18:22.800
<v Speaker 9>just broadening your portfolio out a little bit, getting a

0:18:22.880 --> 0:18:25.320
<v Speaker 9>bit more defensive, because I think we've had this great

0:18:25.400 --> 0:18:28.320
<v Speaker 9>run and I want to see it persist. But I

0:18:28.359 --> 0:18:32.040
<v Speaker 9>want people to be little less risk. There's risk taking,

0:18:32.359 --> 0:18:33.399
<v Speaker 9>little more risk averse.

0:18:36.160 --> 0:18:39.040
<v Speaker 2>This is Bloomberg Daybreak Asia, your morning brief on this

0:18:39.119 --> 0:18:42.120
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0:18:42.200 --> 0:18:42.720
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0:19:17.160 --> 0:19:18.600
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