WEBVTT - Japan's Takaichi Formally Elected PM, Stocks Get Tech Boost

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

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Derek Krisner. We

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<v Speaker 2>begin today in Japan, where sana A Takaichi was reappointed

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<v Speaker 2>as Prime Minister following her electoral win in the recent

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<v Speaker 2>snap election. This will allow Takeiichi to focus on passing

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<v Speaker 2>the annual budget and implementing a trade deal with President Trump.

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<v Speaker 2>Here is Bloomberg's Brian Fowler.

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<v Speaker 3>So we heard from her last night and we'll get

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<v Speaker 3>her big policy speech tomorrow in which she'll lay out

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<v Speaker 3>a lot of what her agenda is going to be.

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<v Speaker 3>We expect her to talk about this idea of cutting

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<v Speaker 3>the sales tax on food purchases for two years. She's

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<v Speaker 3>already said that she wants to put that on a

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<v Speaker 3>priority list. But she'll also talk about the deal that's

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<v Speaker 3>been done. I think that gives her a lot of

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<v Speaker 3>momentum going into her meeting with Trump next month. And

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<v Speaker 3>the great thing about the deal from her perspective is

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<v Speaker 3>that it touches on a lot of the priorities for Japan,

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<v Speaker 3>from critical minerals to energy.

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<v Speaker 4>So I think she'll.

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<v Speaker 3>Tout that and give us some, you know, some more

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<v Speaker 3>information about that.

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<v Speaker 2>That is Bloomberg's Brian Fowler. The Japanese company Kieran is

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<v Speaker 2>perhaps best known for its beer, and these days the

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<v Speaker 2>company is being confronted with a long term decline in

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<v Speaker 2>alcohol consumption worldwide. Health concerns are just one factor. Many

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<v Speaker 2>liquor companies are being forced to diversify, and Kieran is

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<v Speaker 2>no exception. It's making a full scale push into health

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<v Speaker 2>sciences to help drive growth. And that's where we begin

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<v Speaker 2>our conversation with Toro Yoshi Mura, senior executive officer at Kieran.

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<v Speaker 2>Toru spoke with Bloomberg TV host Cherry On and April Hong.

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<v Speaker 1>So tell us a little bit about how significant your

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<v Speaker 1>division is the rest of the kidding group.

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<v Speaker 4>Okay, thank you. Kirian has the long expan.

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<v Speaker 5>It from it's a founding to be a brewing business

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<v Speaker 5>in nineteenth century and then into the food domain and

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<v Speaker 5>then we enter to the pharmaceutical sector back in nineteen eighties.

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<v Speaker 5>And uh, health science business is kind of another pillar

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<v Speaker 5>which bridges between food and the medicine and which we

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<v Speaker 5>are confident to nurture. You know, the global is solving

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<v Speaker 5>the people's health problem like immunity, anti aging and gut

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<v Speaker 5>health UH and sleep. And you know UH that we

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<v Speaker 5>are expanded our business based on the two key UH expertise.

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<v Speaker 5>One is R and D based on their fermentation the

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<v Speaker 5>biotechnology and also other marketing uh you know, UH with

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<v Speaker 5>understanding or deep understanding of the consumer.

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<v Speaker 6>Is.

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<v Speaker 1>So this seems like a very natural progression for Kating

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<v Speaker 1>at this point. You also purchase Fango brand in China.

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<v Speaker 1>Where are the bright spots around the world, because even

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<v Speaker 1>the Chinese market is such a tricky one, isn't it?

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<v Speaker 4>Yeah, it is uh.

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<v Speaker 5>You know, the China involves a lot of you know,

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<v Speaker 5>the uncertainties like regularly and microeconomic and also a geoparticle

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<v Speaker 5>uh at some point. And but you know, the China

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<v Speaker 5>is one of the spots that we are looking at

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<v Speaker 5>as the kind of a potential market for us leveraging

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<v Speaker 5>the Fanco brand and the Fango is the Japanese leading

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<v Speaker 5>uh the supplement and the cosmetics or skin care company

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<v Speaker 5>h which we acquired under twenty twenty four, and that

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<v Speaker 5>is a really key uh business unit for us to

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<v Speaker 5>nurture of the brand and also the health science plan.

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<v Speaker 5>And in the China, you know, the hang Fugal brands

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<v Speaker 5>are already there along with another business c unit brand Blackmoss,

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<v Speaker 5>you know Australia. Yeah, that's right, you know, the joint

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<v Speaker 5>the King Group in twenty twenty three. Uh, and that

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<v Speaker 5>with the infrastructure Brockmore and China. Sorry the fun call

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<v Speaker 5>in China, we are confident to the expanded business.

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<v Speaker 1>So you're planning to expand in China. What about the

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<v Speaker 1>United States? Because you now have this US Japan trade deal,

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<v Speaker 1>the mood seems very favorable. Is that one market that

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<v Speaker 1>you could target?

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<v Speaker 5>Well, actually, our primary target right now is Asia Pacific. Uh,

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<v Speaker 5>you know, because we're going to be at one of

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<v Speaker 5>the largest and the most stressed health sales companies in

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<v Speaker 5>Asia Pacific.

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<v Speaker 4>So probably the first off.

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<v Speaker 5>Our priority will be on the southeast is and the China. However, uh,

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<v Speaker 5>you know, because of the scale of the awareness market. Uh,

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<v Speaker 5>the US is really also very important for US and

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<v Speaker 5>uh uh you know, but the unit US has you know,

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<v Speaker 5>kind of higher barrier entry and uh here has competition there,

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<v Speaker 5>so we really need to establish our serves as kind

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<v Speaker 5>of a credity credit the based position in the US. Uh,

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<v Speaker 5>probably with a science at its core.

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<v Speaker 7>How else you expecting to perhaps establish that as you

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<v Speaker 7>perhaps look to the US as a key market. Torosian, Oh,

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<v Speaker 7>the US market are you looking at in terms of

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<v Speaker 7>a science based approach when you look at the US

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<v Speaker 7>as a place of opportunity? What some of the other

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<v Speaker 7>metrics and A just might be as you explore the US?

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<v Speaker 4>I see, thank you.

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<v Speaker 5>And you know, as I mentioned, you know, creditive based

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<v Speaker 5>approach means that we leverage our expertise in UH, uh

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<v Speaker 5>R and D based on the fermentation about technology, and

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<v Speaker 5>I strongly believe that we can leverage our approprietary ingredients.

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<v Speaker 5>Killing has been developing something like we call the ELC

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<v Speaker 5>plasma plasma lactic acid bacterium and also a citical in

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<v Speaker 5>UH is A and LC plasma is actually UH the

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<v Speaker 5>the ingredients up which activates called the PDC the command

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<v Speaker 5>center of your whole immune system. And UH citicle in

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<v Speaker 5>UH the works primarily in your community or brain function.

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<v Speaker 5>And we sell the citical in UH in the US

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<v Speaker 5>already UH the produced by our biochemical business unit. So

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<v Speaker 5>UH you know, with this kind of the scientific evidence,

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<v Speaker 5>UH really helped to deploy our expertise and also the

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<v Speaker 5>nurture of our business in this.

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<v Speaker 1>Space you mentioned earlier. Also geopolitical tensions really not helping.

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<v Speaker 4>When it comes to China.

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<v Speaker 1>Are you seeing any change in the business because of

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<v Speaker 1>the US, because of the Japan China attentions?

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<v Speaker 5>Well, you know for both black Moss uh and fun course,

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<v Speaker 5>it's too important uh you know uh uh to nurture.

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<v Speaker 4>Or expand our business in China.

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<v Speaker 5>So uh you know, uh, and the people places their

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<v Speaker 5>value in the science and the product product quality, product quality,

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<v Speaker 5>so that's where we can you know, leverage our expertise

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<v Speaker 5>us hearing and where do you produce?

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<v Speaker 1>I'm sorry, because the end is also very vulnerable, right,

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<v Speaker 1>So do you have manufacturing facilities in China or here

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<v Speaker 1>in Japanelly?

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<v Speaker 6>There?

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<v Speaker 5>You know, all all products are actually produced either in

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<v Speaker 5>Japan or the Australia, so that we are doing the

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<v Speaker 5>mainly through our e commas, including the crossboorder economas. So

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<v Speaker 5>now this is the time for us to really consider

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<v Speaker 5>to establish uh their domestic.

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<v Speaker 4>Or local sales channels there.

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<v Speaker 5>And also you know, sometimes we need to consider their

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<v Speaker 5>local production. However, because of the size at this moment,

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<v Speaker 5>it's too early to think about it. So uh, this

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<v Speaker 5>kind of diplomatic tension is really uh you know uh

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<v Speaker 5>uh you know, the area we need to uh got

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<v Speaker 5>carefully watch and I strongly hope you know this kind

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<v Speaker 5>of direct attention will be eased by the administration. Uh,

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<v Speaker 5>especially for the assound trade marketing environment.

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<v Speaker 1>Do you see that already happening with the Taga administration

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<v Speaker 1>now that she has a strong romandate, how do you

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<v Speaker 1>assess her business support?

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<v Speaker 5>We are not sure yet, you know, from the deportion

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<v Speaker 5>of the government and uh probably just uh a new uh.

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<v Speaker 5>You know, the administration has started, so we we will

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<v Speaker 5>see what's going to happen. But in the meantime, we

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<v Speaker 5>really need to select our winnable area carefully for Kring

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<v Speaker 5>and also Black manson funcles. Uh then probably operate with

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<v Speaker 5>and the discipline.

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<v Speaker 1>It's a strategy m and as because it seems you

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<v Speaker 1>purchase fan call blackmore so your expansion of receipts. Will

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<v Speaker 1>that be inorganic through purchases?

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<v Speaker 4>Well, actually, uh, we.

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<v Speaker 5>Don't have you know, any specific transaction I can discuss

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<v Speaker 5>here in public, but you know, because.

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<v Speaker 1>They're some under consideration.

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<v Speaker 5>Yes, and because we are acquired the blackness of Hong Kong,

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<v Speaker 5>our primary focus is to grow organically to leverage the

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<v Speaker 5>existing on the business units. However that we really would

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<v Speaker 5>like to explore the opportunity if it helps to grow

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<v Speaker 5>or enhance the health science business. Uh from the view

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<v Speaker 5>of the brands to market and the any capability were lack.

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<v Speaker 4>Of so uh.

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<v Speaker 5>And also you know, to the point that I mentioned earlier, Uh,

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<v Speaker 5>you know, we are looking at our focusing in the

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<v Speaker 5>Asia Pacific.

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<v Speaker 4>However you know probably will.

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<v Speaker 5>Would uh look at outside of Asia PACIFICA as well.

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<v Speaker 5>The one example in the United States because it is

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<v Speaker 5>the biggest you know, wellness market in the world.

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<v Speaker 1>Given the high entry barrier that you mentioned earlier, and

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<v Speaker 1>M and A would potentially make sense if they already

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<v Speaker 1>had the channels.

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<v Speaker 5>Established it it would be but still again, you know,

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<v Speaker 5>our primary focus in the growth and CIBA and in

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<v Speaker 5>the meantime we have long list short lists, so that

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<v Speaker 5>will we'll keep looking at it.

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<v Speaker 1>What about Southeast Asia because it's such an important market

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<v Speaker 1>as well or is it for killing I guess is

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<v Speaker 1>my question. Because you have big markets like China, you

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<v Speaker 1>have Australia, but what about the smaller countries in Southeast.

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<v Speaker 5>Well, Southeast Southeast Asia is a really important for us

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<v Speaker 5>because uh, this area is really growing almost a double

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<v Speaker 5>digit and one of the fast the world's fastest growing

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<v Speaker 5>uh you know, probably the space for our health related

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<v Speaker 5>hispanic over the next ten to twenty years. However, the

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<v Speaker 5>consulman needs a really differ you know, among these markets,

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<v Speaker 5>so we really need need the market specific approach.

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<v Speaker 1>How are they different, they are different from each.

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<v Speaker 5>Other, regulations and also we need to consider the religious

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<v Speaker 5>part as well, and also some in some countries for skin,

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<v Speaker 5>some countries for the gut system, some country you know

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<v Speaker 5>and has an East for the anti jing anti aging

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<v Speaker 5>is actually becoming more and more more popular. But number

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<v Speaker 5>one is that regulations so and but unfortunately black mars

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<v Speaker 5>are already there and we can leverage their capabilities and

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<v Speaker 5>regulation part as well.

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<v Speaker 2>That is Toro Yoshi Mura, senior executive officer at Kiaran,

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<v Speaker 2>speaking with Bloomberg TV host Cherry On and April Home.

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<v Speaker 2>We're bringing it to you here here on the Daybreak

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<v Speaker 2>Asia podcast. Welcome to the Daybreak Asia Podcast. I'm Doug Chrisner.

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<v Speaker 2>It's difficult to avoid the debate over how AI may

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<v Speaker 2>disrupt various business models. We know software shares have been

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<v Speaker 2>a notable casualty. For a closer look, I'm joined by

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<v Speaker 2>Tim Pagliari, He is the chief investment officer at cap Wealth.

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<v Speaker 2>Tim is on the line from Nashville, Tennessee. Thank you

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<v Speaker 2>for being here. So this phrase that's being used shoot first,

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<v Speaker 2>ask questions later when it comes to these certain software names,

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<v Speaker 2>is that basically what we've been seeing in recent days.

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<v Speaker 6>So I think it's just the uneasiness about what's it

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<v Speaker 6>going to cost, first, how are they going to get

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<v Speaker 6>a return? And then how fast it's evolving. And I

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<v Speaker 6>know even as an analyst, we are experiencing that. I mean,

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<v Speaker 6>we're working with different tools and it's amazing how quickly,

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<v Speaker 6>like Claude six, it is revolutionary. And we have this

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<v Speaker 6>debate internally about how it's going to impact software. And

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<v Speaker 6>so I think some of these software companies that have

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<v Speaker 6>very very expensive packages, they're going to be under some

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<v Speaker 6>pricing pressure. They're going to have to bundle and end

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<v Speaker 6>and innovate around it. So as of right now, it

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<v Speaker 6>really looks to me like it will be impactful primarily

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<v Speaker 6>on pricing. I don't think people are going out of business,

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<v Speaker 6>but I think they're going to have to innovate around it,

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<v Speaker 6>and that's going to lead to a lot of job disruption,

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<v Speaker 6>Like people are predicting.

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<v Speaker 2>So there was some evidence today of dip buying and

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<v Speaker 2>software names. The IGV ETF was up nearly one point

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<v Speaker 2>three percent. When you take a step back and you

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<v Speaker 2>look at various software companies, is it likely that this

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<v Speaker 2>route that we've seen recently has been a bit too

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<v Speaker 2>aggressive and we just have to maybe approach this with

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<v Speaker 2>a little bit more sobriety when it comes to the

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<v Speaker 2>longer term view on how AI will disrupt the industry.

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<v Speaker 6>Yes, And I think that's a real good point. If

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<v Speaker 6>we could use Oracle for an example. You know, Oracle

0:15:34.840 --> 0:15:38.440
<v Speaker 6>has seventy eight data centers under construction. Their revenue is

0:15:38.480 --> 0:15:42.920
<v Speaker 6>going to you know, expand exponentially. And after they did

0:15:42.960 --> 0:15:46.440
<v Speaker 6>an earnings report last summer, the stock nearly doubled, I

0:15:46.520 --> 0:15:50.120
<v Speaker 6>mean almost overnight, and then it completely retraced that and

0:15:50.160 --> 0:15:53.640
<v Speaker 6>went back because of the concern about how much money

0:15:53.680 --> 0:15:55.960
<v Speaker 6>they were going to have to borrow. But I think

0:15:56.000 --> 0:16:01.880
<v Speaker 6>what they missed was the unique application, for example, that

0:16:02.000 --> 0:16:04.880
<v Speaker 6>Oracle is focusing on, and they're moving to Nashville. They're

0:16:04.920 --> 0:16:09.040
<v Speaker 6>putting making a four billion dollar investment into a campus.

0:16:09.200 --> 0:16:13.400
<v Speaker 6>It's going to be their headquarters. Nashville is the headquarters

0:16:14.080 --> 0:16:18.280
<v Speaker 6>for all innovation related to healthcare. And so I think

0:16:18.400 --> 0:16:21.080
<v Speaker 6>Oracle is going to have a unique advantage with AI

0:16:21.280 --> 0:16:25.920
<v Speaker 6>that they will be able to monetize around healthcare, lead

0:16:26.000 --> 0:16:32.240
<v Speaker 6>to better outcomes, innovation, lowering healthcare costs, all of those things. So,

0:16:33.320 --> 0:16:36.440
<v Speaker 6>you know, I think I think Oracle's a little different

0:16:37.040 --> 0:16:40.960
<v Speaker 6>than the rest. Now, if I was, for example, had

0:16:41.000 --> 0:16:47.840
<v Speaker 6>a software company that was in engineering, architectural engineering, I

0:16:47.880 --> 0:16:52.280
<v Speaker 6>think that is an area where AI is just going

0:16:52.360 --> 0:16:59.520
<v Speaker 6>to completely, you know, upend traditional ways of you know,

0:16:59.640 --> 0:17:02.600
<v Speaker 6>looking at things. So I think it's a case by

0:17:02.680 --> 0:17:09.640
<v Speaker 6>case study. You know, Oracles different, Microsoft's different, Amazon's going

0:17:09.680 --> 0:17:14.880
<v Speaker 6>to be different. You know. So these big companies are

0:17:14.920 --> 0:17:18.720
<v Speaker 6>going to have an edge. They'll get more profitable, more efficient,

0:17:19.520 --> 0:17:23.399
<v Speaker 6>and we'll really do a lot of value added to

0:17:23.520 --> 0:17:27.280
<v Speaker 6>the consumer and you know, the public at large.

0:17:28.359 --> 0:17:30.560
<v Speaker 2>So maybe we can pivot and talk a little bit

0:17:30.600 --> 0:17:33.200
<v Speaker 2>about the minutes from the last FED meeting that we're

0:17:33.240 --> 0:17:37.680
<v Speaker 2>released on Wednesday. They indicate that officials are worried over inflation,

0:17:38.160 --> 0:17:41.520
<v Speaker 2>and a number of FED members suggested maybe the next

0:17:41.600 --> 0:17:44.159
<v Speaker 2>move is to raise interest rates if inflation were to

0:17:44.160 --> 0:17:47.880
<v Speaker 2>stay above the Fed's goal. Does that sound a little dramatic?

0:17:47.920 --> 0:17:50.160
<v Speaker 2>To you or do you think there's a real concern

0:17:50.280 --> 0:17:53.440
<v Speaker 2>here that we need to consider the possibility of higher

0:17:53.480 --> 0:17:54.119
<v Speaker 2>interest rates.

0:17:54.920 --> 0:17:57.879
<v Speaker 6>You've got to put that in the context of Worsh's nomination.

0:17:59.000 --> 0:18:03.280
<v Speaker 6>And Kevin Warrish is an academic, he's well respected. He

0:18:03.440 --> 0:18:06.680
<v Speaker 6>was unanimously confirmed the last time he went to the FED.

0:18:08.480 --> 0:18:13.760
<v Speaker 6>And what Warshoes focused on is reducing the Fed's balance sheet.

0:18:13.800 --> 0:18:16.720
<v Speaker 6>So the Fed's balance sheet got up to eight trillion dollars.

0:18:17.359 --> 0:18:19.880
<v Speaker 6>They've cut it to six trillion. Now. That is tightening.

0:18:20.440 --> 0:18:23.200
<v Speaker 6>When they reduce their balance sheet, they're tightening, they're taking

0:18:23.280 --> 0:18:28.280
<v Speaker 6>money out of circulation. So I believe Worsh looks at

0:18:28.440 --> 0:18:32.400
<v Speaker 6>interest rates differently than the rest of the world. You know,

0:18:32.760 --> 0:18:38.200
<v Speaker 6>this idea, for example, that hedge funds owning homes and

0:18:40.119 --> 0:18:44.000
<v Speaker 6>gobbling up you know, rental properties. They have a competitive advantage.

0:18:44.040 --> 0:18:47.040
<v Speaker 6>They can deduct their interest expense, they can do a

0:18:47.080 --> 0:18:49.640
<v Speaker 6>lot of things that regular homeowners can't. And so you've

0:18:49.680 --> 0:18:54.200
<v Speaker 6>got this disconnect right now in the homeowner's market, where

0:18:54.280 --> 0:18:58.639
<v Speaker 6>they're very sensitive to rates, and so you've seen home prices,

0:18:58.640 --> 0:19:02.679
<v Speaker 6>stall is not as sensitive. You know, rates could be

0:19:02.720 --> 0:19:05.399
<v Speaker 6>one percent, they could be five percent, they can be

0:19:05.440 --> 0:19:08.840
<v Speaker 6>twelve percent, and if they can borrow the money, make

0:19:08.880 --> 0:19:13.439
<v Speaker 6>an investment and profit from that after the interest expense,

0:19:13.520 --> 0:19:16.080
<v Speaker 6>they go ahead and do it. You can't change the

0:19:16.200 --> 0:19:20.480
<v Speaker 6>dynamics of a homeowner that has to pay a seven

0:19:20.560 --> 0:19:24.960
<v Speaker 6>percent mortgage versus the cost of that versus a four

0:19:25.000 --> 0:19:29.320
<v Speaker 6>percent mortgage. And so worsh is going to force the

0:19:29.400 --> 0:19:32.600
<v Speaker 6>hand of lowering rates at the time that he's same

0:19:32.640 --> 0:19:36.600
<v Speaker 6>time that he's sensitive to inflation by reducing the Fed's

0:19:36.640 --> 0:19:37.200
<v Speaker 6>balance sheet.

0:19:38.080 --> 0:19:41.040
<v Speaker 2>I'm wondering whether you think there is a risk that

0:19:41.280 --> 0:19:46.320
<v Speaker 2>any balance sheet reduction could potentially put asset prices under pressure.

0:19:48.800 --> 0:19:50.800
<v Speaker 6>Oh, I think they are under pressure. And I think

0:19:51.160 --> 0:19:55.760
<v Speaker 6>you know, part of what's happened with the FED is,

0:19:57.720 --> 0:20:00.680
<v Speaker 6>you know, they compete with the private sector because they're

0:20:00.720 --> 0:20:03.840
<v Speaker 6>borrowing the money, you know, from the banks with the

0:20:03.840 --> 0:20:06.719
<v Speaker 6>FED funds rate. So they printed some of the money

0:20:07.119 --> 0:20:14.360
<v Speaker 6>and they borrow it also. And so if you reduce

0:20:15.080 --> 0:20:17.800
<v Speaker 6>the balance sheet, then you leave more money out in

0:20:17.840 --> 0:20:20.840
<v Speaker 6>circulation for the banks to do their job. And one

0:20:20.880 --> 0:20:23.800
<v Speaker 6>of the things that's got Vestent and Treasury wants to do,

0:20:24.359 --> 0:20:27.760
<v Speaker 6>and I heard him speak earlier this year in a

0:20:27.840 --> 0:20:34.560
<v Speaker 6>private meeting, he wants to get more of you know,

0:20:34.600 --> 0:20:38.000
<v Speaker 6>this opaque market in private credit. He wants it under

0:20:38.040 --> 0:20:42.080
<v Speaker 6>the umbrella of regulation. He wants it brought back into

0:20:42.119 --> 0:20:46.840
<v Speaker 6>the system. And so this is a major policy shift,

0:20:47.920 --> 0:20:49.880
<v Speaker 6>and it's one that I support. I think it will

0:20:49.920 --> 0:20:54.040
<v Speaker 6>be successful, you know, longer term.

0:20:54.240 --> 0:20:56.520
<v Speaker 2>Let's talk a little bit about the macro, because we

0:20:56.600 --> 0:20:59.080
<v Speaker 2>had a number of data points today on the American

0:20:59.119 --> 0:21:03.400
<v Speaker 2>economy that basically indicate things are holding up pretty well.

0:21:03.800 --> 0:21:06.760
<v Speaker 2>Industrial production up in the month of January by the

0:21:06.800 --> 0:21:09.800
<v Speaker 2>most in nearly a year. We also had news that

0:21:10.000 --> 0:21:13.840
<v Speaker 2>orders for business equipment rose in December by more than expected.

0:21:14.480 --> 0:21:17.280
<v Speaker 2>And housing starts, to your point on the housing market,

0:21:17.359 --> 0:21:21.520
<v Speaker 2>housing starts at a five month high. Given everything that

0:21:21.560 --> 0:21:23.320
<v Speaker 2>I just laid out there, it's kind of tough to

0:21:23.440 --> 0:21:26.520
<v Speaker 2>argue right now that we need lower interest rates.

0:21:27.000 --> 0:21:31.240
<v Speaker 6>Yes, well now it is because you still have, as

0:21:31.280 --> 0:21:35.560
<v Speaker 6>we speak directly to housing, housing costs or the shortage

0:21:35.560 --> 0:21:38.360
<v Speaker 6>of housing is still real. I mean, we're anywhere from

0:21:38.480 --> 0:21:43.240
<v Speaker 6>four to eight million units short in housing. And so

0:21:44.080 --> 0:21:49.000
<v Speaker 6>this uptick today just kind of counterbalances the losses that

0:21:49.080 --> 0:21:53.640
<v Speaker 6>we had and the stagnation that we had in housing starts,

0:21:54.040 --> 0:21:58.760
<v Speaker 6>you know, most of last year. So I do believe

0:21:58.920 --> 0:22:06.200
<v Speaker 6>that it will not be inflationary, and it will. We'll

0:22:06.240 --> 0:22:09.040
<v Speaker 6>see a lot with Trump's State of the Union address

0:22:09.119 --> 0:22:12.159
<v Speaker 6>next week and how He's going to address all of this.

0:22:13.680 --> 0:22:15.520
<v Speaker 2>Tim, we'll leave it there, Thank you so very much.

0:22:15.720 --> 0:22:19.080
<v Speaker 2>Tim Pagliara is the chief investment officer at cap Wealth.

0:22:19.240 --> 0:22:22.320
<v Speaker 2>On the line from Nashville, Tennessee. Joining us here on

0:22:22.320 --> 0:22:28.320
<v Speaker 2>the Daybreak Asia Podcast. Thanks for listening to today's episode

0:22:28.400 --> 0:22:32.399
<v Speaker 2>of the Bloomberg Daybreak Asia Edition podcast. Each weekday, we

0:22:32.440 --> 0:22:36.320
<v Speaker 2>look at the story shaping markets, finance, and geopolitics in

0:22:36.359 --> 0:22:39.520
<v Speaker 2>the Asia Pacific. You can find us on Apple, Spotify,

0:22:39.680 --> 0:22:43.160
<v Speaker 2>the Bloomberg Podcast YouTube channel, or anywhere else you listen.

0:22:43.560 --> 0:22:46.479
<v Speaker 2>Join us again tomorrow for insight on the market moves

0:22:46.560 --> 0:22:51.080
<v Speaker 2>from Hong Kong to Singapore and Australia. I'm Doug Chrisner,

0:22:51.240 --> 0:22:52.639
<v Speaker 2>and this is Bloomberg