WEBVTT - Fed's Jackson Hole Shift Fuels Gains in Asia

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

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

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<v Speaker 2>The FED wrapped up its annual Jackson Holl Symposium on Saturday,

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<v Speaker 2>but it was on Friday. In that keynote address that

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<v Speaker 2>FED Shair J. Powell signaled a rate cut could happen

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<v Speaker 2>as soon as September.

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<v Speaker 3>With policy and restrictive territory. The baseline outlook and the

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<v Speaker 3>shifting balance of risks may warrant adjusting our policy stance, Marjorie.

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<v Speaker 3>Policy is not on a preset course. FMC members will

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<v Speaker 3>make these decisions based solely on their assessment of the

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<v Speaker 3>data and its implications for the economic outlook and the

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<v Speaker 3>balance of risks.

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<v Speaker 2>Jay Powell. There now, at the end of this week,

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<v Speaker 2>we're going to get the Fed's preferred measure of inflation,

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<v Speaker 2>the personal consumption expenditures price indexes do on Friday. Also

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<v Speaker 2>do this week Chinese industrial profits for the month of July.

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<v Speaker 2>And in a moment we'll talk with Qing Wong, chief

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<v Speaker 2>apack economist at Vanguard Group. But we begin here in

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<v Speaker 2>the States. Joining me now is Matt Orton. He is

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<v Speaker 2>head of Advisory Solutions and market strategy at Raymond James'

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<v Speaker 2>Investment Management. Matt, thanks for making time to chat with me.

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<v Speaker 2>I want to begin with the Powell speech. What did

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<v Speaker 2>you think? What did you make of what Powell had

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<v Speaker 2>to say?

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<v Speaker 4>So, you know, Doug, I think the Powell speech was

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<v Speaker 4>more Dubvish than a lot of folks were expecting, myself included,

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<v Speaker 4>and it certainly I think changes the narrative in the

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<v Speaker 4>market a little bit. I think rather than being focused

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<v Speaker 4>on inflation as much, we're really going to be keenly

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<v Speaker 4>focused on the employment data that comes. So PCE matters

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<v Speaker 4>this week, but nowhere near as much as payrolls are

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<v Speaker 4>going to matter on September fifth, and so given the

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<v Speaker 4>massive rally that happened after the duvish tilt that Powell took,

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<v Speaker 4>I think the earnings we get from some of the

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<v Speaker 4>tech companies in Nvidia first and foremost on Wednesday of

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<v Speaker 4>this week are going to be really important for sustaining

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<v Speaker 4>the rally, especially and I'll call it, you know, higher

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<v Speaker 4>beta parts of the market. And then we'll see whether

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<v Speaker 4>or not the data we get continues this very very

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<v Speaker 4>optimistic outlook on the case for not only just a

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<v Speaker 4>September cut, but increasing the chances of cuts going into

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<v Speaker 4>the end of the year.

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<v Speaker 2>We can talk about Nvidia in a moment, but I

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<v Speaker 2>want to get your sense on the degree to which

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<v Speaker 2>there may have been a bit of short covering that

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<v Speaker 2>was a part of that rally on Friday.

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<v Speaker 4>Oh, there absolutely was. When you look at some of

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<v Speaker 4>the biggest outperformers on Friday, a lot of names with

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<v Speaker 4>higher short interest were squeezed higher. I think this whole

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<v Speaker 4>small cap complex in particular, you know, had one of

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<v Speaker 4>its best days in quite a long time, and a

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<v Speaker 4>part of that was just very extended leveraged short futures

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<v Speaker 4>positioning and a number of the small cap indices. And

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<v Speaker 4>then you look at the home billers that also had

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<v Speaker 4>a massive rally. Banks, smaller cap banks. You really saw

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<v Speaker 4>I think not only just a squeeze, but anything that

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<v Speaker 4>could be supported by the prospect of lower interest rates

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<v Speaker 4>really caught quite a bid on on Friday.

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<v Speaker 2>So after the bell on Wednesday, we'll get the numbers

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<v Speaker 2>from in Vidia. Clearly this company is at the center

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<v Speaker 2>of artificial intelligence development, and the whole story around AI

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<v Speaker 2>and in Nvidia now really is I think a bell

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<v Speaker 2>weather for not only AI, but the broader market as well.

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<v Speaker 2>When you look at the weight of Nvidia within the

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<v Speaker 2>S and P five hundred being at nearly eight percent,

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<v Speaker 2>that's a pretty powerful force. So there's a lot riding

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<v Speaker 2>on this number. What are you going to be looking

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<v Speaker 2>at critically for the Nvidia story? Is it more the outlook?

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<v Speaker 4>You know, I don't think Nvidia is going to miss

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<v Speaker 4>numbers that would be quite a shock. It's how much

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<v Speaker 4>does Nvidia beat by? And then really critically is what

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<v Speaker 4>are the expectations going forward? Because just to break down

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<v Speaker 4>the importance of Nvidia earnings, Nvidia alone has contributed just

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<v Speaker 4>about twenty percent of the earnings growth of the S

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<v Speaker 4>and P five hundred this year. I mean, that's a

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<v Speaker 4>staggering number. And if you just add in the entire

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<v Speaker 4>AI complex I call that information technology broadly speaking, some

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<v Speaker 4>of the other ancillary AI trades, like the electric equipment company,

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<v Speaker 4>some of the utilities, those collectively have contributed north of

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<v Speaker 4>eighty percent of the earnings growth of the S and

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<v Speaker 4>P five hundred. So the degree of how much this

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<v Speaker 4>trade continues absolutely matters. We got good data and really

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<v Speaker 4>good cap X numbers coming out of the hyperscalers So

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<v Speaker 4>the hope is is that Innvidia's guidance is going to

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<v Speaker 4>project strength with respect to the read through from that.

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<v Speaker 4>And I think it's even more critical because we've seen

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<v Speaker 4>a recent pretty aggressive rotation out of momentum technology into

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<v Speaker 4>values and cyclicals over the past two weeks or so

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<v Speaker 4>that's really left a lot of investors in these trades

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<v Speaker 4>feeling pretty whipsod. So I think being able to see

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<v Speaker 4>strength from Nvidia is going to be critical to getting

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<v Speaker 4>this AI trade on a sustainable path going forward to

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<v Speaker 4>to help I guess lean out of that rotation and

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<v Speaker 4>see the bellweathers and hopefully broader market forces really lead

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<v Speaker 4>the market higher. So there is a lot of importance

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<v Speaker 4>put on Wednesday and then by extension Thursday where you

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<v Speaker 4>get Dell and Marvel, which will be almost a continuation

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<v Speaker 4>on the semispace.

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<v Speaker 2>So to your point about the hyperscalers, if you look

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<v Speaker 2>at companies like Meta, Microsoft, Alphabet, Amazon, those companies equate

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<v Speaker 2>to about forty percent of the revenue for in Vidia.

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<v Speaker 2>Is this stock kind of the situation where we like

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<v Speaker 2>to use the term price to perfection.

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<v Speaker 4>Anyone who's set in vidious price to perfection in the

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<v Speaker 4>past has been wrong just because the stock continues to

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<v Speaker 4>go higher. But I think Doug your point is taken

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<v Speaker 4>because I don't often love to see stocks run up

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<v Speaker 4>into the earnings report, where there's so much importance put

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<v Speaker 4>on what it is the company is going to report

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<v Speaker 4>and guide in particular, So the bar is just set

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<v Speaker 4>incredibly high for Nvidia, So I think valuation wise, the

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<v Speaker 4>earnings number could be spectacular. You could continue to see

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<v Speaker 4>multiple contraction on a stock like Nvidia supported by strong earnings.

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<v Speaker 4>But it's really all about the guide going forward and

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<v Speaker 4>how much strength and read through you're going to get

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<v Speaker 4>from those hyperscalers that you just mentioned going into their

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<v Speaker 4>outlook over the rest of this year and forward into

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<v Speaker 4>twenty twenty six.

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<v Speaker 2>So at the end of the week, it's the Fed's

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<v Speaker 2>preferred measure of inflation PCE. I think the core rate

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<v Speaker 2>is expected to be a kind of a an uncomfortable

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<v Speaker 2>level annually, a two point nine percent from a year ago.

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<v Speaker 2>Do you think that that would dissuade the FED from

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<v Speaker 2>kind of the course that we seem to be on

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<v Speaker 2>right now, with Powell articulating that concern about a weaker

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<v Speaker 2>labor market may carry the day rather than a little

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<v Speaker 2>bit of worry about inflation.

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<v Speaker 4>Yeah, I don't think it's going to change the outlook

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<v Speaker 4>that much because I think expectations have been pretty accurate

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<v Speaker 4>going forward and we've kind of seen all the components

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<v Speaker 4>that are going to feed to PCE. So I can't

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<v Speaker 4>imagine it's going to be a big deviation one way

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<v Speaker 4>or the other on the numbers that we get this week,

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<v Speaker 4>and especially with Powell talking about this curious balance during

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<v Speaker 4>his speech, where really we're the emphasis is going to

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<v Speaker 4>be on employment, and so I think all of that

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<v Speaker 4>just minimizes the importance of what we're going to get

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<v Speaker 4>with respect to the inflation numbers and really will emphasize

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<v Speaker 4>the importance of the NFP that we're going to get

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<v Speaker 4>on Friday the fifth.

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<v Speaker 2>So we're talking a lot about the US market. I'm

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<v Speaker 2>curious if you look offshore right now, are you finding value?

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<v Speaker 4>Absolutely? You know. One of my key themes Doug heading

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<v Speaker 4>into this year for clients and especially the back half

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<v Speaker 4>of this year was building balance, and to me, balances

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<v Speaker 4>across asset classes. It's across geographies, across sectors, industries, market capitalizations.

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<v Speaker 4>So in addition to looking more at small caps and

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<v Speaker 4>opportunities in higher quality small caps. I've really been trying

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<v Speaker 4>to find opportunities across international markets and emerging markets, in

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<v Speaker 4>particular the two big You know, China has had a

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<v Speaker 4>lot of strength recently despite some of the economic challenges

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<v Speaker 4>that the country faces. The strength being projected by the

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<v Speaker 4>large internet companies, and in some of the actions the

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<v Speaker 4>government is taking with respect to semiconductors and building more

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<v Speaker 4>within China, I think that provides a boost for the

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<v Speaker 4>strength in China to continue. And you're seeing risk taking

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<v Speaker 4>increase on shore, so all of that I think can

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<v Speaker 4>continue the trend that you've had. So China looks very

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<v Speaker 4>interesting to me. And also in the EM complex, India

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<v Speaker 4>has really been the big underperformer. You've seen a lot

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<v Speaker 4>of weakness over the past few months. A decent chunk

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<v Speaker 4>of that has been disappointing earnings. But after some of

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<v Speaker 4>the changes the government is making with respect to tax reform,

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<v Speaker 4>that should help incentivize consumption to really get the economic

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<v Speaker 4>growth numbers, which by the way, are probably going to

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<v Speaker 4>be around seven percent of GDP growth. I think that

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<v Speaker 4>should turn around some of the weakness and earnings, and

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<v Speaker 4>that to me also looks very interesting. Not only from

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<v Speaker 4>a relative valuation standpoint, but also just from a long

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<v Speaker 4>term secular investment theme of a country with one point

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<v Speaker 4>four billion people and a massive growing consumer class.

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<v Speaker 2>So if we had to identify themes, then the sense

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<v Speaker 2>that I'm getting let's talk China and then I'll let

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<v Speaker 2>you go. Is it more tech driven than being consumption driven?

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<v Speaker 4>Is that the thesis it is the consumer in China

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<v Speaker 4>has been weak. I don't know when and if that's

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<v Speaker 4>ever going to turn. Maybe it terms that the government

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<v Speaker 4>actually takes some of the massiveiscal action that I think

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<v Speaker 4>is going to be necessary in a country where there's

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<v Speaker 4>just increased savers. So a lot of the growth and

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<v Speaker 4>a lot of the earnings to me are coming from

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<v Speaker 4>the technology complex, and you've seen really strong earnings from

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<v Speaker 4>the Big four. In addition, you're seeing strength in some

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<v Speaker 4>of those semiconductor names where I think the government's moving

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<v Speaker 4>industrial policy to help support them, especially as the US

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<v Speaker 4>and China continue while maybe not explicitly in the news,

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<v Speaker 4>but there's certainly a continuing i'll say war for Ai

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<v Speaker 4>dominance that's happening in China's going to invest heavily there,

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<v Speaker 4>so there's certainly room for that trade to also continue

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<v Speaker 4>and add into the market, and those are just bigger

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<v Speaker 4>weights within the market as well.

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<v Speaker 2>Okay, Matt, We'll leave it there. Thanks so much. Matt

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<v Speaker 2>Orton there. He is head of Advisory Solutions and Market

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<v Speaker 2>Strategy at Raymond James Investment Management. Joining us here on

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<v Speaker 2>the Daybreak Asia Podcast. Welcome back to the Daybreak Asia Podcast.

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<v Speaker 2>I'm Doug Chrisner. Equity markets across the Asia Pacific are

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<v Speaker 2>following in the footsteps of last Friday's rally on Wall

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<v Speaker 2>Street and Chair J. Powell opening the door to a

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<v Speaker 2>resumption in rate cuts, maybe as soon as next month.

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<v Speaker 2>For more, we heard from Chen Wang chief Apaka Khan

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<v Speaker 2>missed at the Vanguard Group. She spoke with Bloomberg TV

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<v Speaker 2>host Sherry On and April Hong on the Asia trade.

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<v Speaker 5>So we are still unpacking some of these Powell comments.

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<v Speaker 4>The read through is that it.

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<v Speaker 5>Was very dubvish. How much cover does this provide Asian

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<v Speaker 5>central banks, including the Bank of Korea that has a

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<v Speaker 5>decision due this week.

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<v Speaker 6>Thanks for reminding me today. Good morning. You know, to

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<v Speaker 6>a certain extent, I would encourage rite the tone of

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<v Speaker 6>power to be very dolish. I think it's actually a

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<v Speaker 6>pretty balanced tone. It does recognize that the balance of

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<v Speaker 6>risk is shifting, so that makes us September clot to

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<v Speaker 6>be the baseline. At this moment, we have been expecting

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<v Speaker 6>two cuts this year, September and December. That seems to

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<v Speaker 6>be still appropriate. After Power's comments on Friday, however, I

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<v Speaker 6>think when you listen to his fish and comments, you

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<v Speaker 6>know he continued to emphasize the risk of inflation. So

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<v Speaker 6>to that extent, even if we get a cut in September,

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<v Speaker 6>I would more characterize as a more hookish cut, And

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<v Speaker 6>I think you still I think the decision of FAT

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<v Speaker 6>will be very much depend on our data, especially how

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<v Speaker 6>weak the labor market will be when they actually make

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<v Speaker 6>that decision in September. In terms of the Asia central banks, now,

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<v Speaker 6>of course everybody is watching FAT what they will do,

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<v Speaker 6>but I think ultimately for Easia central banks, their decision

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<v Speaker 6>will still very much depend on the domestic situation as

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<v Speaker 6>well as their reaction function. Right, especially the weaker dollars

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<v Speaker 6>about this year is providing central banks some you know,

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<v Speaker 6>flexibility right to make their decision. You mentioned about bankok Korea,

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<v Speaker 6>I would say they probably want to stay on hold

0:12:53.920 --> 0:12:57.880
<v Speaker 6>this week to be in rather a wead and see mode, right.

0:12:57.960 --> 0:13:00.000
<v Speaker 6>You know, on one hand, we always know that bankok

0:13:00.320 --> 0:13:04.280
<v Speaker 6>and cares a lot about financial stability, risk, housing prices,

0:13:04.360 --> 0:13:08.120
<v Speaker 6>household dett and at the same time we do know

0:13:08.320 --> 0:13:11.920
<v Speaker 6>Korean growth all look actually has improved slightly recently. So

0:13:12.640 --> 0:13:15.160
<v Speaker 6>I think they would just want to you know, wait

0:13:15.240 --> 0:13:18.680
<v Speaker 6>a little bit and then you know, probably right until

0:13:18.760 --> 0:13:20.440
<v Speaker 6>October to see what the FED will do.

0:13:21.400 --> 0:13:24.480
<v Speaker 1>But on that FED rate decision coming on September, what

0:13:24.559 --> 0:13:27.240
<v Speaker 1>are you seeing in terms of the economic data that

0:13:27.840 --> 0:13:31.319
<v Speaker 1>has share power leaning towards a cut because we continue

0:13:31.360 --> 0:13:34.240
<v Speaker 1>to see inflationary pressures high in the United States, and

0:13:34.280 --> 0:13:37.559
<v Speaker 1>of course more fiscal policy perhaps opening the tabs for

0:13:37.960 --> 0:13:39.840
<v Speaker 1>more overheated economy there.

0:13:40.760 --> 0:13:43.720
<v Speaker 6>Yeah, I mean totally. I think at this moment what

0:13:43.880 --> 0:13:48.640
<v Speaker 6>is clear in powers comments is that FED is willing

0:13:48.679 --> 0:13:52.959
<v Speaker 6>to look through the tariff related inflation as long as

0:13:53.000 --> 0:13:56.440
<v Speaker 6>inflation expectation is well anchored in the long term. Right.

0:13:56.960 --> 0:14:00.400
<v Speaker 6>So given that, I think in terms of the reaction function,

0:14:00.520 --> 0:14:04.160
<v Speaker 6>you clearly see the focus is shifting towards the labor

0:14:04.240 --> 0:14:08.040
<v Speaker 6>market strands. So I think the question here is that

0:14:09.360 --> 0:14:13.719
<v Speaker 6>how weak the labor you know market is especially I

0:14:13.720 --> 0:14:17.440
<v Speaker 6>would say, whether the weakening in the labor demand you know,

0:14:18.440 --> 0:14:22.200
<v Speaker 6>versus the decline in labor supply. So I think the

0:14:22.280 --> 0:14:26.720
<v Speaker 6>critical data to watch obviously inflation will be the one.

0:14:26.840 --> 0:14:32.080
<v Speaker 6>But unless there are significant junk inflation data, then I

0:14:32.080 --> 0:14:34.360
<v Speaker 6>think the key is uh see, you know, what is

0:14:34.400 --> 0:14:38.000
<v Speaker 6>a non found payroll you know number? And also where

0:14:38.080 --> 0:14:41.360
<v Speaker 6>the unemployment rate goes. I think that would be something

0:14:41.600 --> 0:14:45.000
<v Speaker 6>to be critically watched by FAD. Now that said, I

0:14:45.040 --> 0:14:49.680
<v Speaker 6>would say, even though power set, there should be adjustment

0:14:49.800 --> 0:14:52.800
<v Speaker 6>in term monitrey policy. I would say that adjustment will

0:14:52.840 --> 0:14:56.920
<v Speaker 6>be very gradual and also to certain stam be rather limited.

0:14:57.400 --> 0:15:00.640
<v Speaker 6>One is, as you were saying that the leasi risk,

0:15:01.320 --> 0:15:05.240
<v Speaker 6>it's definitely on the outside, especially when the economy seems

0:15:05.240 --> 0:15:10.920
<v Speaker 6>to be running, you know, pretty hard with the Cisco policy,

0:15:11.560 --> 0:15:14.040
<v Speaker 6>stimulus that's coming. And the other one is also the

0:15:14.120 --> 0:15:18.040
<v Speaker 6>neutral rate in the economy is higher. So even though

0:15:18.080 --> 0:15:20.400
<v Speaker 6>we do except that to continue to cut into twenty

0:15:20.480 --> 0:15:23.440
<v Speaker 6>twenty six, we see them stop at three point five percent,

0:15:24.600 --> 0:15:26.080
<v Speaker 6>you know, by end of next year.

0:15:26.640 --> 0:15:29.640
<v Speaker 5>What about what else we heard from jackson Hole, including

0:15:29.680 --> 0:15:34.000
<v Speaker 5>from boj Governor Kazua, talking about how the tight labor

0:15:34.080 --> 0:15:38.960
<v Speaker 5>market exerts upward pressure on wages. Is that Holcus enough

0:15:39.040 --> 0:15:44.080
<v Speaker 5>read through to you that maybe coalesces expectations around an

0:15:44.120 --> 0:15:45.720
<v Speaker 5>October rate type.

0:15:46.840 --> 0:15:51.080
<v Speaker 6>Yes, I think BOG is really the outlier among global

0:15:51.120 --> 0:15:55.400
<v Speaker 6>central banks. So I think, you know, Japan's situation is

0:15:55.400 --> 0:15:59.080
<v Speaker 6>a bit different from you know, other countries. You know,

0:15:59.160 --> 0:16:02.760
<v Speaker 6>at this moment, we see that japan growth at this

0:16:02.880 --> 0:16:06.680
<v Speaker 6>moment is uh really sustained by domestic demands. We do

0:16:06.720 --> 0:16:11.400
<v Speaker 6>see some structural turnaround in domestic you know, both consumption

0:16:11.560 --> 0:16:14.200
<v Speaker 6>and investment. And also we do see that there is

0:16:14.240 --> 0:16:17.520
<v Speaker 6>a structural change in the price setting and which setting

0:16:17.560 --> 0:16:22.440
<v Speaker 6>behavior sustained by very like a tight labor market. Right,

0:16:22.480 --> 0:16:25.920
<v Speaker 6>So given that, I would say, you know, we do

0:16:26.040 --> 0:16:29.760
<v Speaker 6>see a good chance that inflation will continue to pass

0:16:29.800 --> 0:16:34.200
<v Speaker 6>through from wage to price and then inflation core inflation

0:16:34.240 --> 0:16:36.880
<v Speaker 6>should be able to sustain you know, around two percent,

0:16:37.360 --> 0:16:41.760
<v Speaker 6>and that actually provide enough support for BOJ to hike

0:16:42.360 --> 0:16:45.680
<v Speaker 6>you know, interest rate later this year, especially when the

0:16:45.720 --> 0:16:50.320
<v Speaker 6>trade external uncertainty actually has reduced quite a bit after

0:16:50.960 --> 0:16:54.240
<v Speaker 6>the trade agreement has been achieved. So this is where

0:16:54.240 --> 0:16:58.080
<v Speaker 6>we actually see BOJ to hike once this year and

0:16:58.200 --> 0:17:01.720
<v Speaker 6>then continue to do so and gradually bring the interest

0:17:01.760 --> 0:17:04.040
<v Speaker 6>rate to neutral income years.

0:17:05.040 --> 0:17:08.640
<v Speaker 1>Deflationary pressure is, on the other hand, affecting the Chinese economy.

0:17:08.640 --> 0:17:11.840
<v Speaker 1>As we continue to get data that doesn't look too positive,

0:17:12.560 --> 0:17:17.240
<v Speaker 1>Will we see the PVOC moving at any point? Does

0:17:17.400 --> 0:17:20.520
<v Speaker 1>more easy money make sense for this economy at this point?

0:17:21.680 --> 0:17:23.680
<v Speaker 6>Well, I think when you look at China, China is

0:17:23.720 --> 0:17:28.000
<v Speaker 6>totally the opposite story. The weakness is really on the

0:17:28.000 --> 0:17:31.560
<v Speaker 6>domestic side, right, I mean, expert has been holding up

0:17:31.720 --> 0:17:35.000
<v Speaker 6>as so well, you know, so far this year, but

0:17:35.359 --> 0:17:37.680
<v Speaker 6>you know, we do see actually more signs of domestic

0:17:37.800 --> 0:17:41.760
<v Speaker 6>slow down and also this kind of significant demand supply

0:17:41.920 --> 0:17:46.000
<v Speaker 6>imbalance is really driving this deflation and re pressure. That's

0:17:46.119 --> 0:17:49.040
<v Speaker 6>I think exactly why the government is actually trying to

0:17:49.080 --> 0:17:54.399
<v Speaker 6>address this more structural issue with the anti evolution you

0:17:54.400 --> 0:17:58.520
<v Speaker 6>know campaign. But I would say, you know, to deal

0:17:58.560 --> 0:18:02.320
<v Speaker 6>with this deflation challenge, the key is really on, you know,

0:18:02.320 --> 0:18:05.080
<v Speaker 6>boosting up the demand. On the other hand, I think

0:18:05.320 --> 0:18:10.080
<v Speaker 6>the anti anti evolution campaign is likely to be rather

0:18:10.160 --> 0:18:14.199
<v Speaker 6>gradual and sector specific, so the impact on you know,

0:18:14.560 --> 0:18:18.320
<v Speaker 6>addressing the deflation challenge is likely to be limited. Now

0:18:18.400 --> 0:18:21.040
<v Speaker 6>in terms of central bank I would say, yes, I

0:18:21.080 --> 0:18:24.240
<v Speaker 6>do think there's room to cut interest rate you know

0:18:24.280 --> 0:18:28.600
<v Speaker 6>when the economy is stucking into this kind of persistent

0:18:28.680 --> 0:18:33.000
<v Speaker 6>deflationary pressure. But we always know that central bank in

0:18:33.119 --> 0:18:36.880
<v Speaker 6>China is always reluctant to cut interest rate, so we

0:18:37.000 --> 0:18:41.280
<v Speaker 6>expect only a very modest ten based point cut later

0:18:41.400 --> 0:18:44.840
<v Speaker 6>this year. But even that, I would say it's probably

0:18:44.920 --> 0:18:48.680
<v Speaker 6>only later this year when the policy makers see more

0:18:48.720 --> 0:18:52.320
<v Speaker 6>concrete evidence of a of a downturn in the economy.

0:18:53.040 --> 0:18:56.400
<v Speaker 6>That is when they're going to step up with more policystems,

0:18:56.440 --> 0:18:57.880
<v Speaker 6>both monetary and the cisco.

0:18:58.600 --> 0:19:00.520
<v Speaker 1>Right, Chiang Wang. Good to have you with LA's chief

0:19:00.560 --> 0:19:02.920
<v Speaker 1>Asia Pacific economist at Vanguard Group.

0:19:04.920 --> 0:19:08.280
<v Speaker 2>Thanks for listening to today's episode of the Bloomberg Daybreak

0:19:08.440 --> 0:19:11.800
<v Speaker 2>Asia Edition podcast. Each weekday, we look at the story

0:19:11.880 --> 0:19:16.240
<v Speaker 2>shaping markets, finance, and geopolitics in the Asia Pacific. You

0:19:16.280 --> 0:19:20.359
<v Speaker 2>can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,

0:19:20.480 --> 0:19:23.520
<v Speaker 2>or anywhere else you listen. Join us again tomorrow for

0:19:23.640 --> 0:19:27.119
<v Speaker 2>insight on the market moves from Hong Kong to Singapore

0:19:27.520 --> 0:19:31.320
<v Speaker 2>and Australia. I'm Doug Chrisner, and this is Bloomberg