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00:00And so we are seeing a little bit more diplomacy coming out from China once again they've been quite measured when it comes to some of these retaliatory efforts on trade. And just going to bring up what Adam was mentioning about valuation reset we shaved enough when it comes to valuations for you to dip your toes into these markets. Well I think when we look at valuations some of the market's valuations have just back to historical averages at this stage I think. Well the more interesting opportunities. But I think by and large we do encourage investors to be a bit more cautious going into this April given that we think volatility is going to be fairly high . But nevertheless I think if there are any pullbacks it be interesting opportunities to start to at some risk. So what are the signs of caution that you're seeing. I mean it seems like we've largely been focusing on the trade tensions so far. I mean there's also you know these inflation concerns a hawkish Fed. You know Credit Suisse spreads as well hasn't exactly been supporting some of these equity bounce back that we've seen . Well among all these risks as you've highlighted I think the biggest risk is that protectionism risk we are seeing that swing to and fro. It seemed like a it's soft and a bit at least for this week or so. But nevertheless the risk is still there and definitely if the retreat starts to spike up again I think risk assets will take a hit. So I think that's one area that investors have to be watch watching out for. In terms of protection this stick risk. Yeah. Having said that though we have seen these PMI numbers coming out from China which we saw this rebound quite a big one here and the first time we've actually seen some kind of uptick since November. Does that give you a little at least some encouraging signs that perhaps you know on the manufacturing side the exporters can actually withstand some of these trade hawkishness Well it's too early. It shows that the economy especially in China is extremely strong and global sentiment is too solid and healthy. But it hasn't taken into account the treat effects . But so far we are just seeing even the trade tariffs that we've seen on steel and aluminium. It's actually extremely small at this point of time. The risk is of course the tit for tat. And then the impact will be bigger. But it seemed from the March data it's not taking account that. But of course April May June . These are the data points that I think we will be watching out for weather. But chasing managers will start to be worried about this trade risk. But so far so good. But nevertheless I think we should just be a little bit cautious going into April .

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Bank of Singapore's Cheo Encouraging Investors to Be Cautious

Bank of Singapore Senior Investment Strategist James Cheo discusses volatility and his investment thoughts. He speaks on "Bloomberg Daybreak: Asia." (Source: Bloomberg)

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