Live on Bloomberg TV

00:00♪ THIS IS A ASIA TRADE. I'M SHERY AHN. AND I'M AVRIL ONG. BIG TECH OPTIMISM LIFTS WALL STREET. NVIDIA JUMPING ON A PLEDGE FOR $100 IN OPEN A.I. DATA CENTERS. JEROME POWELL WILL SPEAK LATER AFTER MIRAN MAKES HIS CASE FOR MORE AGGRESSIVE RATE CUTS. ALSO AHEAD, JIMMY KIMMEL LIVE WILL RETURN ON TUESDAY ENDING A SUSPENSION OVER HIS REMARKS ABOUT THE MURDER OF CHARLIE KIRK. AND WIDESPREAD DAMAGE AND DESTRUCTION FROM THE SUPER TYPHOON AS TYPHOON AS IT LASHES THE AREA WITH 130 MILE-AN-HOUR WINDS. A BIG TAIL WIND COMING FROM WALL STREET. THE TECH SECOND, TO, TO EXUBT GIVEN NVIDIA'S INVESTMENT. DOES THAT SIGNAL THAT THERE IS ENOUGH DEMAND IN A.I. THAT THERE IS BROAD PARTICIPATION OR IS THIS BECAUSE THE LEADERS IN THE MARKET ARE GETTING TOO EXPENSIVE? SO PEOPLE ARE SEARCHING FOR THE SECONDARY TRADES. THAT'S SOMETHING TO KEEP AN EYE OUT ON. THE OTHER THING IS WHAT WE WERE EXPECTING FROM THE MOVES IN THE CHINESE YEN. JUST YESTERDAY WE HEARD FROM THE PBOC GOVERNOR MAKING SOME RARE PUBLIC REMARKS ABOUT HOW WHEN IT COMES TO THE PATH OF THE PBOC THEY'RE GOING TO DO THEIR OWN THING. IT'S MORE ABOUT DATA AT HOME. YEAH, BECAUSE REALLY RIGHT NOW WHAT WE'RE TRYING TO GAUGE IS WHERE THE FED GOES FROM HERE, RIGHT? ESPECIALLY OTHER CENTRAL BANKS AROUND THE WORLD GIVING THEM SOME LEEWAY TO ACT AS WELL. SWAT MARKETS PRICING IN TWO MORE RATE CUTS COMING THIS YEAR. WE'VE SEEN A LITTLE BIT MORE CONSOLIDATION IN THE TREASURY SPACE BUT STILL THOSE CUTS PRICED IN. WE CONTINUE TO SEE THE LATEST COMMENTS FROM A VARIETY OF FED SPEAK. MOST NOTABLY COMING FROM STEVEN MIRAN AND THE TRUMP ADMINISTRATION. HE TOOK LEAVE FROM THE WHITE HOUSE. HE WANTS THE AGGRESSIVE RATE CUTS. HE ARGUES THAT IT HAS BEEN PUSHED LOWER BECAUSE OF OTHER VARIABLES LIKE TARIFF AN OTHER MACRO ECONOMIC CONCERNS INCLUDING TAXES. SO WE CONTINUE TO WATCH WHAT STEVEN MIRAN WILL DO BECAUSE REMEMBER HE DECENTED. HE WANTED A 50 BASIS POINT CUT LAST WEEK AND VERY, VERY DIFFERENT FROM WHAT OTHER FED SPEAKERS HAD TO SAY. TAKE A LISTEN. THE UPSHOT IS THAT MONETARILY POLICIES WELL INTO RESTRICTIVE TERRITORY. LEAVING TWO PERCENTAGES TOO TIGHT RISK LAYOFFS AND UNEMPLOYMENT. IT'S IMPORTANT TO KNOW THAT THESE COMMENTS FROM MIRAN DID RAISE SOME EYEBROWS BECAUSE IN CONTRAST TO WHAT OTHER FED SPEAKERS HAVE BEEN SAYING YOU THINK OF MU SELM AND BOSTICK DON'T THINK THERE'S A KNEAD FOR MORE RATE CUTS RIGHT NOW. YOU HAVE HAM MICK TALKING ABOUT HOW INFLATION IS STILL HIGH. THAT IS A RISK. TAKE A LISTEN. THINK WE SHOULD BE VERY CAUTIOUS IN REMOVING MONETARILY POLICY RESTRICTION BECAUSE I THINK IT'S IMPORTANT THAT WE STAY RESTRICTIVE. IT WORRIES ME IF WE REMOVE THAT RESTRICTION THINGS COULD START OVERHEATING AGAIN. SO LET'S TALK ABOUT HOW THE MARKETS IN SE SHA COULD BE SHAPING IN. WE MENTIONED NVIDIA BOOSTING OPTIMISM BOOSTING OPTIMISM AS WE HAVE THE MONETARILY PATH. WELL, I THINK THE FED OFFICIALS SIDE OF THINGS IS UNLIKELY TO HAVE A HUGE IMPACT ON THE ASIA SESSION PER SE. IT MAY HELP TO FIRM THE DOLLAR A LITTLE BIT. BUT THE DOLLAR IS MOSTLY, I THINK, HOLDING ABOUT WHERE IT IS UNTIL WE SEE WHAT HAPPENS HERE WITH THE INFLATION READINGS THAT WE GET AT THE END OF THIS WEEK, YOU KNOW, THE UPDATED THE P.C.E. FIGURE WHICH IS THE FED'S MAIN MERGE BENCH MARK ON INFLATION. IT'S GOT A LITTLE BIT LESS IMPACT TODAY BECAUSE JAPAN IS SHOT. SO WE DON'T HAVE THE MARKET THAT IS MOST EXPOSED TO THE U.S. LOCAL INTEREST RATE MIX. SO THEN WHEN WE LOOK AT THE A.I. SITUATION THAT -- AGAIN THAT WOULD BE A POSITIVE DRIVE FOR JAPANESE MARKETS IN PARTICULAR BECAUSE OF THE DATA CENTER NEWS OUT OF NVIDIA. IN THE ABSENCE OF THAT, THERE'S A GOOD CHANCE THAT SOUTH KOREA AND TAIWAN MARKETS IN PARTICULAR WILL BENEFIT FROM THE CONTINUED EVIDENCE OF THE A.I. BOOM AND THAT THAT'S THE MAIN DRIVER FOR MARKETS. MAY ALSO IS HELP CHINESE MARKETS. THEY'VE GOT THEIR OWN LOCAL A.I. DRIVERS THAT SHOULD BENEFIT FROM THIS. THE OTHER THING ALSO IN SOUTH KOREA, THERE'S BEEN A LOT OF STRENGTH IN SORT OF THE DEFENSE INDUSTRY IN ALIGN STOCKS AND THE NEWS OUT OF THE EUROPE OVERNIGHT WITH THE AWARDING OF A DEFENSE CONTRACT THERE AND CONTINUED TENSIONS WITH RUSSIA THAT'S GOING TO BE A POSITIVE FOR DEFENSE STOCKS. AVRIL: I THINK WHAT IT HAS BEEN SIGNALING ALONG WITH WHAT MARKETS HAVE SIGNALING THE GAP IS WIDER FOR NEXT YEAR. HOW DO YOU SEE THAT SHAPING OUT? GARFIELD: THAT'S VERY HARD TO SAY HOW EXACTLY THAT'S GOING TO SHAKE OUT BECAUSE THERE ARE A NUMBER OF BALLS IN THE AIR ONE OF WHICH DOES PRESIDENT TRUMP PERSUADE THE SUPREME COURT THAT HE HAS THE RIGHT TO -- FIRE LISA COOK. AT THE MOMENT SHE IS ON THE BOARD. AND HER TERM DOESN'T RUN OUT FOR MANY YEARS. SO THAT IS A MAJOR FACTOR. YOU KNOW, WE'VE ALREADY SEEN WITH THE -- WHAT'S NOW AT THE MOMENT A SHORT-TERM APPOINTMENT OF MOR -- MIRAN THAT TRUMP'S APOINT YEES CAN LEAD TO A SOFTER APPROACH TO MONETARILY POLICY. MIRAN INSISTS THAT HE DIDN'T PROMISE PRESIDENT TRUMP ANYTHING WHEN HE TOOK ON THE ROLE. BUT BE THAT AS IT MAY, HIS ASSESSMENT OF WHERE INTEREST RATES SHOULD BE ALLIANCE MORE CLOSELY WITH THE PUBLIC UTTER ANSWERS FROM THE PRESIDENT ABOUT INTEREST RATES SO THAT'S THE BIG QUESTION FOR NEXT YEAR IS, WHAT WILL BE THE MAKEUP OF THE FEDERAL RESERVE BOARD? WHO WILL BE THE NEXT FED CHAIR AND HOW WILL THAT IMPACT THE LONGER TERM POLICY OUTLOOK? WE ALSO HAVE THE QUESTION WHICH MAY NOT BE RESOLVED HOW DO TARIFFS END UP ULTIMATELY END UP IMPACTING INFLATION. THE EXPECTATION IS THAT -- THAT THE -- THE IMPACT OF TARIFFS ON INFLATION WILL BE SHORTER TERM, THE LONGER TERM CONCERNS ARE WITH THE POTENTIAL THAT SLOWS GROWTH. SO IF -- THAT DOES PLAY OUT, THEN WHATEVER THE MAKEUP OF THE FED BOARD IS YOU MIGHT WELL GET SIGNIFICANTLY LOWER FED FUNDS RATE TARGET BECAUSE YOU HAVE A SIGNIFICANTLY WEAKER ECONOMY. YOU KNOW, THERE IS SOME REASON TO THINK THAT THE FED MIGHT REGRET NOT REGRET NOT MOVING FASTER ON INTEREST RATES BECAUSE UNEMPLOYMENT DEFINITELY DOES SEEM TO BE RISING. AS YOU NOTED THE FED HAD SPOKE. SO IT'S -- WE'RE VERY DATA DEPENDENT AND WE ARE KIND OF IN THE DARK TO SOME EXTENT ABOUT WHETHER THE CURRENT DATA TRENDS WHICH ARE STICKY INFLATION, GRADUALLY RISING UNEMPLOYMENT WHETHER THOSE WILL SUSTAIN, WHETHER WE GET A BREAKOUT HIGHER IN ONE OR BOTH. AND IF WE GET A BREAKOUT IN HIGH -- IN -- WHAT DOES THE FED DO? WE WE HAVE SEEN CONSECUTIVE HIGHSERLY THE -- ESPECIALLY WITH THE TECH SECTOR. CLEARLY THE KINDS OF INVESTMENTS THE TRUMP ADDS MINISTRATION WANTS TO SEE. YOU MENTION THERE HAD THAT NUMBER. AS MUCH AS $100 BILLION. IT'S GOING TO BE USED TO SUPPORT THAT BUILDOUT THAT'S NEED FOR ARTIFICIAL INTELLIGENCE. THEY'VE ASSIGNED A LETTER OF INTENT FOR WHAT'S GOING TO BE A STRATEGIC DEAL. WHAT WE GOT IS A FEW MORE DETAILS. WHAT WE UNDERSTAND IS THAT THE MONEY IS ACTUALLY GOING TO COME IN STAGES. SO RIGHT NOW THEY GET $10 BILLION, OPEN A.I. THEY'RE GOING TO MAKE THAT INVESTMENT NVIDIA IN CASH. THEY'RE GOING TO RECEIVE OPEN A.I. EQUITY AS PART OF THE DEAL. AND FURTHER INCREMENTS IS GOING TO BE FOLLOWING FOR EACH GIGA WATT. THE OVERALL GOAL IS FOR 10 GIGAWATTS OF POWER. SO THAT'S GOING TO BE -- I MEAN, YOU'RE TALKING ABOUT ENOUGH POWER TO POWER NEW YORK CITY AT PEAK ELECTRICITY DEMAND. SO IS IT A HUGE AMOUNT OF CAPACITY THAT'S SUPPOSED TO COME ONLINE. BUT EACH TIME, THAT'S THE EXPECTATION. NOW THE $10 BILLION WILL BE GIVEN AHEAD OF THAT ESSENTIALLY BUT REALLY MAJOR INVESTMENT AND YOU SAW THAT REFLECTED. WE SAW THAT BIG RALLY IN TECH. BUT NVIDIA AT NEARLY 4% AND CLEARLY AS WELL, YOU'VE GOT THAT WIND FOR OPEN A.I. CONTINUES. BECAUSE OPEN A.I. WILL BE USING NVIDIA TECHNOLOGY AND NVIDIA CHIPS. IT'S GOING TO KEEP NVIDIA AS A KEY SUPPLIER INTO OPEN A.I. EVEN IF THEY LOOK FOR OTHER SUPPLIES AS WELL. IN THE MEANTIME, WE'VE ALSO GOT DETAILS FURTHER DETAILS ON THE SHAPE THIS U.S.-CHINA DEAL ON TIKTOK MIGHT TAKE. WHAT STANDS OUT TO YOU. IT'S ALL ABOUT THE ALGORITHM. THAT'S BEEN THE KEY STICKING POINT BECAUSE THE U.S. LAW MANDATES A TIKTOK SALE, MANDATING A TIKTOK SALE FORBIDS BITE DANCE FROM ANY OPERATIONAL ROLE IN THE NEW U.S. APP. AND THAT INCLUDES CHINESE LAW ON THE OTHER HAND BUYS THE EXPORT OF SUCH SENSITIVE TECHNOLOGIES. HOW ARE THEY GOING TO BE GETTING AROUND THIS ALGORITHM WHAT WE'VE UNDERSTOOD IS THAT THERE'S GOING TO BE A REALLY MAJOR ROLE FOR ORACLE. BITE DANCE WILL LICENSE A COPY OF THE TECHNOLOGY TO THE NEW U.S. ENTITY. YOU CAN SEE SOME OF THE DETAILS THERE. BUT SOME OF THOSE PEOPLE IN THE CON SOURCE YUM -- CONSORSIUM. AND ANDREESEN. THAT TECHNOLOGY IS GOING TO BE LICENSED. BUT THEN THE ALGORITHM WILL BE RETRAINED. IT'S GOING TO BE UNDER ORACLE'S OVERSIGHT, SO A SECURE CLOUD. CONTROLS IN PLACE ESSENTIALLY TO WARD OFF ANY FOREIGN ADVERSARIES. THIS IS WHAT WE'RE HEARING FROM THE U.S. OFFICIAL. BUT BITE DANCE IN CHINA SUSPECT GOING TO HAVE ANY ACCESS TO THE AREAS, ANY CONTROL OVER HOW THAT ALGORITHM IS CONTROLLED. IS THIS GOING TO BE ENOUGH TO GET IT PAST LAWMAKERS AND IS IT GOING TO BE ENOUGH FOR BEIJING TO SIGN OFF ON THE DEAL? WHEN IT COMES TO ORACLE, WE'RE SEEING SOME LEADERSHIP CHANGES. HOW MUCH DO THEY REFLECT SOME OF THE NEW FOCUS FROM THE BUSINESS GIVEN THESE NEW OPPORTUNITIES AS WELL? YEAH, REALLY PIVOTAL ACTUALLY. SO SAFRIKATS IS GOING TO STEP DOWN. SHE'S BEEN LEADING THE COMPANY AS THE ROW SO SHE'LL BE VICE CHAIR. SHE WAS HESITANT TO MAKE BIG INVESTMENTS OR BIG ON THE CLOUD INFRASTRUCTURE BUSINESS INITIALLY. SO SHE'S TAKING THIS ON THIS NEW ROLE THAT SO THAT IN THE MEANTIME TWO COMPANY INSIDERS ARE BEING PROMOTED INTO THE POSITION. YOU'VE GOT CLA MAGORYK. HE'S 39 YEARS OLD. SO YOUNGEST HE WAS ONE OF THE ORACLE CLOUD INFRASTRUCTURES FIRST EMPLOYEES AND CECILIA AT 54, HE WAS RECENTLY THE ORACLE PRESIDENT. THE COMPANY ANNOUNCED THEY SIGNED ON BIG PARTNERSHIPS. THEY'RE INVESTING HEAVILY TO FULFILL THOSE COMMITMENTS IN THE CLOUD INFRASTRUCTURE SPACE. INTERESTING MOVE. YOU DON'T OFTEN SEE CO-C.E.O.'S AT THIS LEVEL BUT ORACLE DOES HAVE EXPERIENCE WITH THIS BECAUSE CATS FOR INSTANCE WAS CO-C.E.O. WITH MARK HURD RATHER FOR SEVERAL YEARS UNTIL HE PASSED AWAY IN 2019 AND THEN A NEW CO-C.E.O. WASN'T NAMED. ORACLE DOES HAVE EXPERIENCE WITH THIS -- AND WHAT'S INTERESTING TO NOTE IS THAT MAGORYK AND SILIA WILL HAVE DIFFERENT PACTS. HE WILL TAKE A PACKAGE WORTH $250 MILLION. AND CECILIA WILL BE RECEIVING ONE THAT'S WORTH AROUND $100 MILLION. THAT'S WHAT THE COMPANY SAID IN A FILING TO THE REGULATORS. YEAH, THESE NEW CO-C.E.O.'S BEING NAMED A THE TIME WHEN THE COMPANY IS BEING REINVIGORATED. BELL, THANKS SO MUCH. COMING UP ON THE ASIA TRADE. COLGATE UNIVERSITY UNPACKETS THE FALLOUT FROM THE HB1 VISA FEE. WE TALK ABOUT MARKET STRATEGY.. ANTHONY ABANIZI MISSES OUT AGAIN ON THE Invest with confidence. DISNEY SAYS THE JIMMY KIMMEL LIVE PROGRAM WILL RETURN ON TUESDAY ENDING A SUSPENSION IMPOSED OVER THE HOST'S REMARKS ABOUT THE MURDER OF CONSERVATIVE ACTIVISTS CHARLIE KIRK. LET'S GO TO LOS ANGELES AND CHRIS PALMIERI WHO LEADS OUR ENTERTAINMENT COVERAGE JOINS NOW FOR THIS LATEST DEVELOPMENT. SO CHRIS, WHAT'S BEHIND THIS REVERSAL AND HAS THE PLEASURE FROM CARR REALLY GONE AWAY? CHRIS: WELL, ONE OF THE THINGS WE'RE WAITING ON IS TO SEE THE REACTION FROM SOME OF THE OWNERS OF LOCAL ABC STATIONS -- A COUPLE OF THEM CAME OUT SAYING THEY WERE GOING TO PREEMPT THE SHOW AND WHETHER THEY'LL TAKE THE SHOW BACK AGAIN AS ITS RETURNS ON TUESDAY. NEITHER HAS BEEN COMMENTING. WE ALSO HAVEN'T HEARD ANYTHING DIRECTLY FROM THE F.C.C. CHAIRMAN BRENDAN CARR OR FROM PRESIDENT TRUMP. BOTH WERE VERY LOCAL WHEN THIS WHOLE CONTROVERSY BEGAN. HE THREATENED TO REMOVE LICENSES FROM STATION OWNERS. THIS IS SOMETHING THAT TRUMP HAS BEEN SAYING FOR A LONG TIME BUT HAS BEEN ES SKATED IN THE SECOND TERM. NOT SURE WE'LL QUITE SEE THE END OF THIS. HE'S CALLED FOR OTHER TV HOSTS TO BE REMOVED. WE HAVEN'T SEEN HIS REACTION TO KIMMEL'S RETURN. TO WHAT EXTENT DO YOU THINK THIS IS SPARKING A BROADER CONVERSATION ABOUT MASS MEDIA IN THE U.S. AND HOW WE KNOW IT'S REALLY -- DIVERGED? -- DIVERGED? WE'RE STARTING TO SEE THIS ONE. SOME REALLY REMARKABLE -- THINGS FOR EXAMPLE. WE SAW THE FORMER C.E.O. OF THE COMPANY'S DECISION -- -- RAND PAUL CRITICIZING THE DECISION. ALMOST BREAKING RANKS IN THE REPUBLICAN URGING PREGNANT WOMEN NOT TO TAKE IT. AFTER SLUMPING TO A RECORD LOW, THE COMPANY SAYS, INDEPENDENT, SOUND SCIENCE SHOWS TAKING ACETAMINOPHEN DOES NOT CAUSE AUTISM. SO TAKING TYLENOL IS NOT GOOD. I'LL SAY IT. IT'S NOT GOOD. Your daughte's turning 9 today. AVRIL: AS THE FEDERAL RESERVE GOVERNOR STEVEN MIRAN IS MAKING HIS CASE FOR AGGRESSIVE RATE CUTS. SPEAKING TO BLOOMBERG AT THE ECONOMIC CLUB OF NEW YORK, THE TRUMP APPOINT YEE TOLD US WHY HE WANTS A TOTAL OF 150 BASIS POINTS OF EASING THIS YEAR. I SPENT THE SECOND HALF OF THE YEAR INTO NEXT YEAR TO BE BETTER IN TERMS OF GROWTH IN THE FIRST HALF OF THIS YEAR. IN LARGE PART BECAUSE A LOT OF THE EFFECTS OF THE TAX BILL WILL BE KICKING IN AND YOU KNOW, TRADE UNCERTAINTY DISSIPATING BUT I HAVE A LOT THAT IS EXPANDING THE SUPPLY SIDE AS THE DEMAND SIDE. AS I SAID IF ACTUAL OUTPUT ARE MOVING IN AT THE SAME TIME, IT DOESN'T IMPLY A HAWKISH OR MIGHT TIGHTER POLICY BECAUSE THE APPLE CAP IS MOVING AT THE SAME TIME. INSTEAD MY VIEW IS THAT POLICY IS ROUGHLY TWO POINTS TOO RESTRICTIVE WHICH IS CONSIDERABLY RESTRICTIVE. AND EVEN THOUGH I'M EXPECTING GROWTH TO BE BETTER IN THE FUTURE THAT COULD GET DERAILED UNNECESSARILY SO AND CREATE AN APP WHERE ONE NEED NOT EXIST IF WE DON'T GET POLICY CLOSER TO NEUTRAL. THAT SAID BECAUSE OF THE DISTANCE NEUTRAL, MY VIEW IS IT'S BETTER TO MOVE THERE MORE QUICKLY THAN LESS QUICKLY IT'S NOT A PANICKY MOVE LIKE 75 BASIS POINTS. I'M NOT PANICKED BUT I JUST SEE THE RISK GROW THE LONGER YOU REMAIN SIGNIFICANTLY ABOVE NEUTRAL. YOU'RE AMONG NEW COLLEAGUES BUT NOBODY WANTS TO MOVE QUITE AS QUICKLY AS YOU DO. WHAT IS IT THAT CONCERNS YOU ABOUT THE LABOR MARKET? WELL, WE LEARNED THAT THE FIRST HALF OF THE YEAR WAS NOT AS STRONG AS WE WOULD HAVE LIKED TO HAVE BEEN. WE LEARNED THAT THE LABOR MARKET CONTINUED TO LOSE MOMENTUM INTO THE FIRST HALF OF THIS YEAR. AND THAT TO ME MEANS THAT EVEN THOUGH GROWTH IS GOING TO PICK UP FOR VARIOUS REASONS, THERE ARE CONCERNS THAT HEY, THINGS HAVE BEEN MOVING IN THE WRONG DIRECTION AND IF YOU KEEP POLICY THIS DEGREE OF RESTRICTIVE FOR TOO LONG, YOU'RE NOT GOING TO ALLOW THINGS TO MOVE IN THE OTHER DIRECTION. AND SO YOU'RE GOING TO CREATE A SITUATION IN WHICH AN APLICAP STANDS. WE NEED TO GET CLOSER TO NEUTRAL QUICKLY. AND THROUGH A SERIES OF 50'S WAS THE PROPERTY POLICY. YOU DON'T SEE THAT AS PANIC? I DON'T SEE THAT AS PANIC. IF I WERE PANICKING I WOULD TELL PEOPLE I WAS PANICKING. ALL RIGHT. [LAUGHTER] A LOT OF BUSINESSES SAY -- YOU TALK IN YOUR SPEECH AND JUST NOW ABOUT HOW RATES ARE TOO RESTRICTIVE. BUT A LOT OF BUSINESSES THAT I'VE BEEN HEARING FROM AND READING READING DIFFERENT REPORTS AND ANALYSIS SHOWS THAT SOME OF THE PULLBACK IN INVESTMENTS IS NOT TO THE RESTRICTIVE RATE ENVIRONMENT. YOU KNOW, THERE'S PARTS OF THE ECONOMY THAT HAVE BEEN AFFECTED BY THAT. AS I SAID BEFORE I DO THINK THAT THAT TYPE OF UNCERTAINTY IS NOT TOTALLY GONE BUT IT'SLESS THAN IT WAS A FEW MONTHS AGO. HOWEVER, HOUSING, I THINK IT'S CLEAR THAT RATES ARE -- THAT RATES ARE -- YOU KNOW, THAT RATES ARE THE PRIMARY IMPEDIMENT TO HOUSING AND BUILDING MORE HOUSING. AT THE MOMENT, YOU KNOW, I DON'T THINK THAT THAT'S A FUNCTION OF TRADE POLICY OF CERTAINTY. THE GOVERNOR STEVEN MIRNA SPEAKING. WE HAVE MORE AHEAD ON THE SPEAKING. WE HAVE MORE AHEAD ON THE THE $100,000 FEE IMPOSED ON THE HB1 VISA HAS SENT SHOCK WAVES THROUGH INDUSTRYS THAT DEPEND ON GLOBAL TALENT. THE MOVE BY THE TRUMP ADMINISTRATION HAS SPARKED CONCERNS ACROSS SECTORS INCLUDING EDUCATION AND HEALTHCARE. PHYSICIANS COULD BE ELIGIBLE FOR EXEMPTIONS. TO DISCUSS THE IMPLICATIONS WE'RE JOINED BY CHAD SPARBER WHO IS FOCUSED ON THE HB1 VISAS. IT SEEMS TO BE THAT SOME OF THESE CHANGES REFLECT THE TRUMP ADMINISTRATION'S INTENT ON SKEWS THE SORT OF MIGRANTS THAT THEY GET INTO HIGHER ECONOMIC CLASS. WHAT'S YOUR ASSESSMENT OF THE DESIRED EFFECTS FROM HERE? I THINK IN GENERAL THAT'S A REASONABLE DESIRE. INSOFAR THAT YOU WANT TO ATTRACT THE BEST AND BRIGHTEST INTO THE COUNTRY. I THINK IT MAKES MORE SENSE TO ALLOCATE VISAS IN SOME WAY THAT'S RELATED TO THE VALUE THAT THEY MIGHT ADD TO THE ECONOMY AS OPPOSED TO THE RANDOM ALOCATION WE HAVE NOW WITH THE LOTTERY SYSTEM. THE SORT OF UNDERLYING MOTIVE TO CHANGE THE WAY THAT THE HB1 VISA STATUS IS LOCATED IT MAKES SENSE TO ME. RON THE H1B WHAT ARE THE POTENTIAL CONSEQUENCES ESPECIALLY IN THE TECH SECTOR THAT RELIES VERY HEAVILY ON FOREIGN WORKERS? RIGHT. YES, SO TALK MORE SPECIFICALLY ABOUT THE DOLLAR FIGURE THAT'S BEEN PROPOSED, THE $100,000. THAT'S REALLY DANGEROUS BECAUSE AS YOU SAID THE TECH SECTOR IS REALLY RELIANT ON H1B WORKERS. THESE FOREIGN WORKERS HAVE ACCOUNTED FOR SOMETHING BETWEEN 30% AND 50% OF U.S. TECHNOLOGICAL PROGRESS OVER RECENT DECADES. AND SO WE DON'T WANT TO SHUT THAT SYSTEM DOWN. I'M AFRAID THAT IF WE CHARGE AS MUCH AS $100,000 FOR HIRING THESE WORKERS THAT THAT'S EXACTLY WHAT IT'S GOING TO DO. IT'S GOING TO STIFLE PRODUCTIVITY AND STIFLE TECHNOLOGICAL PROGRESS AND HURT THE U.S. ECONOMY. THE SYSTEM OF RANDOM ALOCATION, THOUGH, IT DOES HAVE SOME OF THE DOWNSIDES. SO IT BEGS THE QUESTION OF, IF NOT THIS, THEN WHAT SORT OF REFORMS ARE REQUIRED. WHAT ARE YOU PERHAPS PROPOSING OR ADVOCATING? WELL, I WOULD SAY THAT IF THE DOLLAR FIGURE WAS EVEN AS LOW AS $20,000, YOU COULD GET AROUND TO SYSTEM OF THE PROBLEMS WITH RANDOM ALOCATION. ANOTHER METHOD THAT YOU COULD USE WOULD BE TO DISTRIBUTE THE H1B'S ACCORDING TO WHO HAVE THE HIGHEST WAGE OFFERS. THAT WAY YOU CAN PICK THE TOP TAIL OF THE DISTRIBUTION OF THOSE WHO A HAVE APPLIED FOR A H1B STATUS. WE HAVE PUSHED FOR AN AUCTION SYSTEM TO ALLOCATE H1B STATUS THAT'S A WAY YOU CAN FIGURE OUT EFFECTIVELY WHAT THE MARKET PRICE FOR WHAT AN H1B WORKER SHOULD BE. CONGRESS HAS SAID THAT WENT UP P 85,000 WORKERS. IF YOU SUBJECT THE ACCESS TO THOSE WORKERS TO -- HOW MIGHT THIS APPROACH BENEFIT SOME OF THE TECH FARMS? WOULD IT BE COST NEUTRAL OR ADD COST FOR THEM? YEAH, I MEAN, YOU CAN DO COST NEUTRAL BECAUSE ONE OF THE PROBLEMS WITH LOTTERY ALLOCATION IS THAT FIRMS ARE SPENDING GOBS OF MONEY SEARCHING FOR WORKERS AND EXTENDING OFFERS TO WORKERS THAT THEY'LL NEVER BE ABLE TO HIRE. NOT ONLY THAT BUT ONCE THEY'VE IDENTIFIED THE WORKERS THAT THEY EXTEND OFFERS TO, RANDOM ALLOCATION DECIDES WHICH OF THOSE INDIVIDUALS GET THE STATUS AND WHICH ONES DON'T. SO IF YOU HAVE A WORKER THAT YOU REALLY, REALLY WANTED, YOU MIGHT NOT BE ABLE TO GET THAT PERSON AND INSTEAD YOU ONLY GET THE ONE THAT YOU KIND OF SORT OF THOUGHT WOULD BE AN OK WORKER. SO YEAH, SOMETHING ELSE LIKE AN OPTION SYSTEM, SOMETHING THAT MOVES AWAY FROM RANDOM ALLOCATION. THAT WOULD ALLOW THEM TO GET MORE CERTAINTY IN WHO THEY HIRE AND IT'S COST NEUTRAL AS I SAID IN THE SENSE THAT YOU'RE LONGER WASTING MONEY. YOU'RE INSTEAD PAYING THE GOVERNMENT FOR THE RIGHT TO HIRE THESE WORKERS AND THOSE FUNDS CAN BE USED TO FUND STEM EDUCATION IN THE U.S. AND DEVELOP THE NATIVE-BORN STEM WORK FOR US. OVERALL WHAT'S THE DEMOGRAPHIC SITUATION IN AMERICA. WE KNOW THE BABY BOOMERS ARE RETIRING IN LARGE NUMBERS. WILL THESE TIGHTER RESTRICTIONS ON VISAS OR THESE CHANGES, COULD THEY HAVE AN IMPACTS ON THE BROADER U.S. ECONOMY? YEAH, I THINK IT'S GOING TO HAVE A HUGE WORKFORCE. IF YOU LOOK AT RECENT DECADES, FOREIGN WORKERS ARE ACCOUNTABLE FOR ABOUT 2/3 OF THE STEM LABOR FORCE. ALREADY BEFORE YOU'RE TALKING ABOUT BABY BOOMERS RETIRING, YOU KNOW, THIS SECTOR WAS DOMINATED BY FOREIGN WORKERS, IS DOMINATED BY FOREIGN WORKERS. AND THESE ARE EXACTLY THE WORKERS WHO ARE RESPONSIBLE FOR CREATING NEW TECHNOLOGIES AND ADVANCING THE TECHNOLOGICAL FRONTIER OF THE AMERICAN ECONOMY. I WANTED TO GET YOUR THOUGHTS AS WELL ON, YOU FOLKS IN HOW THIS CHANGES ARE HAPPENING WITH THIS CHANGES ARE HAPPENING WITH THE VISAS. HOW IS IT IMPACTING OUTSOURCING FIRMS? DOES THAT HAVE BROADER IMFULLY CASES? -- IMPLICATIONS? I KIND OF UNDERSTAND IT. THEY TEND TO BE LOW WAGE WORKERS WORKING IN EFFECTIVELY LIKE TEMP JOBS, HIGH SKILLED TEMP JOBS IN AMERICA. BUT THOSE FIRMS HAVE A -- HAVE AN ADVANTAGE IN BASICALLY IN THE LOTTERY SYSTEM THAT IS TO SAY THEY KIND OF HAVE ACCESS TO LARGE POOL OF AVAILABLE WORKERS USUALLY FROM INDIA THAT THEY CAN BRING INTO THE UNITED STATES PRETTIESS. WHERE THE SEARCH COSTS ARE MUCH MORE DIFFICULT FOR FIRMS THAT ARE BASED IN THE U.S. SMALL STARTUP FIRMS SMALL STARTUP FIRMS THAT CAN'T AFFORD TO ABSORB RISK IN THE HIRING PROCESS, YOU KNOW, THE UNCERTAINTY INVOLVED WITH IDENTIFIED WORKER THAT I WANT. CREATED THIS INTERESTING INCENTIVE SCHEME WHERE IT'S REALLY THE OUTSOURCING COMPANIES THAT THEN SPECIALIZE IN HIRING H1B WORKERS AND BRINGING THEM TO THE U.S. IF YOU MOVED AWAY FROM LOTTERY ALLOCATION. THE RULE OF THE OUTSOURCES FIRMS WOULD DECREASE. WELL, THE TRUMP ADMINISTRATION IS DOING IS NOT JUST IMPLEMENTING CHANGES TO LEGAL IMMIGRATION BUT CLAMPING DOWN ON UNDOCUMENTED IMMIGRANTS. WHEN IT COMES TO THE U.S. ECONOMY, THOUGH, WE KNOW THAT THESE ILLEGAL IMMIGRANTS PAY SALES TAXES, SALES TAX. WHAT ARE THE BROADER CONSEQUENCES? I THINK THERE'S A LOT OF CONCERN IN THAT AREA. I MEAN, I LIVE IN DAIRY COUNTRY, DAIRY INDUSTRY IS ONE THAT'S CHARACTERIZED BY HIGH LEVELS OF UNDOCUMENTED IMMIGRANTS. IF THOSE WORKS AREN'T AVAILABLE TO MILK THE COWS, THERE ARE NOT AMERICAN WORKERS STANDING READY TO -- TO JUMP IN AND TAKE THEIR PLACE. ECONOMIC EVIDENCE SUGGESTS THAT WHEN YOU DEPORT IMMIGRANTS FROM THIS INDUSTRY, THAT EFFECTIVELY THE PICKING PROCESS IS REPLACED BY AUTOMATION BASICALLY MACHINES OR VACUUMS THAT YOU HOOK UP TO THE COWS AND YOU GET LOWER PRODUCTION AND HIGHER PRICES AS A RESULT. AND SO I THINK IT'S ENTIRELY REASONABLE TO EXPECT THE PRICES OF A LOT OF GOODS AND SERVICES IN THE U.S. ECONOMY DERIGHTS AS A CONSEQUENT OF TRYING TO DEPORT MILLIONS OF WORKERS WHO ARE HERE EVEN IF THEY'RE HERE ILLEGALLY. CHAD, THANK YOU FOR YOUR TIME. MUCH APPRECIATE IT. CHAD SARBER IS PROFESSOR AT COME GET A UNIVERSITY. WE SAW THE DOLLAR SLIDING OTHER NIGHT AGAINST THE BACKDROP OF THESE FED EXPECTATIONS. TREASURIES DIDN'T DO MUCH. WE'RE SEEING THAT ALSO THE TICK UP COMING IN ON THE GREENBACK FOR THE MOMENT, BUT WHAT REALLY CAUGHT OUR ATTENTION, OF COURSE, WERE THE U.S. STOCKS AND HOW THE BROADER INDICES CLOSE AT MORE RECORD HIGHS. 6693 IS WHERE THE BROAD BASED IS FINISHED. POLAND IS PREPARED TO SHOOT DOWN ANY -- UNAUTHORIZED FOREIGN AIRCRAFT ENTERING THE TERRITORY. THE WARNING FOLLOW AS SERIES OF RUSSIAN INCURSIONS INTO NATO AIR SPACE EARLIER THIS MONTH. U.S. TREASURY SECRETARY SCOTT BESSENT HAS PLEDGED TO PROVIDE ARGENTINA WITH ALL OPERATIONS FOR STABLIZATION TO KEEP IT FROM FALLING BACK INTO ECONOMIC CRISIS BESSENT SAYS OPTIONS INCLUDE BUT AREN'T LIMITED TO CURRENCY SWAP LINES AND DIRECT CURRENCY REPURCHASES. IT MAY EMERGE AFTER JAVIER MILEI MEETS IN TUESDAY IN NEW YORK WITH BESSENT AND PRESIDENT TRUMP. A DELEGATION OF U.S. LAWMAKERS VISITING CHINA HAS CALLED FOR FAIR AND REASONABLABLE ACCESS TO THE CHINESE MARKET. DURING A MEETING WITH VICE PREMIER, THE DELEGATION ALSO EXPRESSED CONCERNS REGARDING CHINA'S RECENT RESTRICTIONS ON THE SUPPLY CRITICAL MINERALS. THESE REMARKS COME COM AS BOTH NATIONS SEEK TO STABILIZE AMADE OF A POTENTIAL MEETING BETWEEN N XI AND TRUMP. PONG GO SHUN SAYS ANY CHANGES TO MONETARILY POLICY WILL BE GUIDED PRIMARILY BY DOMESTIC FACTORS. HE TOLD A BRIEFING IN BEIJING -- THIS IS BLOOMBERG. THE LATEST FROM THE CORPORATE THIS IS BLOOMBERG. THE LATEST FROM THE CORPORATE FRONT, PFIZER WILL PAY $4.9 FOR THE STARTUP TO CATCH UP IN THE ANTI-OBESITY MARKET AFTER FAILING TO COMPETE WITH ITS OWN MEDICATION. METESERA IS DEVELOPING EXPERIMENTAL WEIGHT LOSS DRUGS INCLUDING A SHOT THAT COULD BE TAKEN LESS FREQUENTLY. PORSCHE SALES SLUMPED. IT WILL INTRODUCE MORE COMBUSTION ENJOIN GIN. THEY WILL FORCE THEM TO SLASH THEIR OUTLOOK FIRST THE YEAR. PORSCHE HAS LOST HALF THEIR VALUES SINCE THE 2022 LISTING. HERE'S WHAT WE'LL BE WATCHING. STAYING WITH THESE SHIFTING E.V. STRATEGIES. KEEP AN EYE ON KOREAN AWE THOUGH MAKERS FOLLOWING THE DROP IN POSH. THEY ALSO FELL AFTER NEWS BROKE THAT WARREN BUFFET'S SHARES BROKE IN THE CHINESE E.V. MAKER. AFTER EUROPEAN DEFENSE STOCKS RALLIED, TENSIONS WITH RUSSIA REALLY ONE OF THOSE KEY DRIVERS. RUSSIAN FIGHTER FIGHTER JETS VID ESTONIAN AIR SPACE WHILE POLAND IS THREATENED TO AND THEN NOT FORGETTING THE CHIP MAKERS DATA -- THEY'RE THE THIRD BROKER IN A MONTH TO OPERATE IT RETRIEVING A RALLY THAT WOULD MAKE ASML BIGGEST COMPANY BY MARKET VALUE. JAPAN IS CLOSE. BUT WE SHOULD BE KEEPING AN EYE ON THE CHIP MAKERS WHEN THEY REOPEN LATER IN THE WEEK. YEP, WE'RE WATCHING THE BROAD ERIE JOHN APART FROM JAPAN AS WELL AS MARKETS OPEN, OF COURSE, THESE ASIAN STOCKS AND HOW THEY ARE SET TO CONTINUE OUTPERFORMING THE U.S. P.S. WE HAVE A WEAKER DOLLAR THAT'S BEEN BOOSTING THEIR APPEAL AND BENEFITING THIS LOWER VALUATION, RIGHT? LOWER VALUATION, RIGHT? THAT'S ANOTHER DRIVER. SIGNIFICANT SHIFT AWAY FROM AMERICAN WHAT DO YOU EXPECT IN TERMS OF OUTPERFORMANCE? YEAH, SO FAR, LOTS OF STRATEGIES. WE'VE BEEN EXPECTING THAT OUTPERFORMANCE TO CONTINUE. WHEN YOU LOOK AT THE ANNUAL PERFORMANCE, WE'RE LOOKING AT AN ANNUAL OUTPERFORMANCE OF ASIAN STOCKS OVER S & P 500, THE BIGGEST SINCE 2017. SO REALLY LIKE YOU MENTIONED THERE WERE A COUPLE VERY INTERESTING DRIVERS THERE. YES, THERE IS THAT LOW VALUATION OF ASIAN STOCKS THERE EASING THAT CHINA TENSION BUT THE DIVERSIFICATION AWAY FROM THE ASSETS BUT THESE ARE THE MACRO TAIL WINDS. WHEN YOU LOOK AT THE MARKETS THERE ARE INTERESTING THINGS GOING ON. WE TALKED ABOUT THE SOUTH KOREA CORPORATE GOVERNANCE, COOPERATE REFORM, TAKING SOUTH KOREAN MARKET TO RECORD HIGHS AND EXTENDING THAT AS WELL. ALSO WHEN YOU LOOK AT FOR EXAMPLE, JAPAN THAT PATH OF POLICY NORMALIZATION AND STOCKS ALSO STILL AT RECORD HIGH LEVELS AND HIGH WANT EASE STOCKS EXTENDING THAT. THE SOLID A.I. DEMAND AND NOT TO FORGET THAT BIG DRIVER THERE FOR ASIA THIS TIME AROUND IS THAT CHINA LIQUIDITY -- BECAUSE WE'RE STILL SEEING THAT STRUCTURAL CHANGE OF PEOPLE SHIFTING MONEY AWAY FROM SAVINGS AND INTOER QUITIES AND THAT TREND IS LIKELY TO STILL CONTINUE ALSO WITH INVESTORS TIPTOEING BACK INTO THE CHINESE MARKET AND FURTHER HAVE A FLOW. WE'RE CONTINUING TO LOOK AT DRIVING IT FURTHER AND THE DOLLAR TO WEAKEN IN THE MEDIAN TERM AND THAT HELPS THE ASIAN CURRENCIES HERE AS WELL. WHAT ARE THE RISKS, WINNIE? YEAH, SO, ACTUALLY, WHEN YOU THINK ABOUT THE FED EASING PATH THAT WE TALKED ABOUT LAST WEEK, WE HAD -- KIND OF LIKE A DEBATE OR DISCUSSION ABOUT WHETHER IT'S ON THE DOVEISH SIDE OR ON THE HAWKISH SIDE. YES, IT WAS A DOVEISH CUT. BUT ACTUALLY IT WASN'T AS DOVEISH AS IT COULD BE. WE ARE HEARING INVESTORS STILL A LITTLE CAUTIOUS IN TERMS OF HOW HAWKISH IT CAN BE. HAWKISH IS THERE. AND THAT WILL THEN KIND OF DELAY THE EXPECTATION FOR THE RATE CUTS AND PRESSURE ASIAN CURRENCIES FURTHER. RIGHT NOW, THEY ARE EXPECTING A FEW CUTS WHETHER IT'S IN INDIA OR SOUTHEAST ASIA. SO THAT EXPECTATION IS BUILT IN THERE. AND IF WE SEE A REVERSAL IN TERMS OF THE EXPECTATION FOR THAT EASING PATH THAT WOULD BE ONE OF THE KEY RISKS THAT WE'RE WATCHING BUT ALSO THAT POLITICAL UNCERTAINTY IN SOUTHEAST ASIAN COUNTRIES, RIGHT? WE'VE GOT INDEPENDENCE NEARBY SHA HAVING THE FINANCE MINISTER REMOVE AND THE NEW FINANCE MINISTER COMING IN. AND THAILAND, THE NEW P.M. WE HAVEN'T FIGURED OUT WHO'S GOING TO BE THE NEW P.M. FOR JAPAN SO THE POLITICAL UNCERTAINTY IS STILL THERE. AND WE'RE CLOSELY WATCHING THAT RELATIONSHIP BETWEEN THE U.S. AND CHINA. PROTESTS IN THE PHILIPPINES AS WELL. WHAT ARE SOME OF THE OTHER RISKS? DO WE NEED TO SEE FOR ASIA STOCKS THAT IT BROADENS OUT BEYOND TECH EVEN FURTHER? WINNIE: YES, LIKE YOU MENTIONED, A LOT OF THE RALLY HAS BEEN DRIVEN BY THE A.I. OPTIMISM THAT REALLY DEMAND IS HERE TO STAY. IT'S BEEN DRIVING THE CHINA TECH NAMES BECAUSE OF HOW THEY HAVE BEEN ABLE TO MONETIZE A.I. AND INCOOPERATE THAT INTO THEIR EARNINGS AS WELL. SO A PART OF THAT A.I. THEME WHETHER WE CAN SEE WHETHER IF THAT ASIAN CURRENCY STRENGTHEN IS GOING TO HELP BOOST THE OVERALL ECONOMY IN ASIA, THAT WOULD BE ONE KEY FACTOR TO WATCH. FOR NOW LIKE WE MENTIONED, THERE IS THAT POLITICAL UNCERTAINTY IN THEOUT EAST ASIAN COUNTRIES. THEY ARE THE COUNTRIES THAT STRUGGLE WITH THE ECONOMIC GROWTH. WHEN WE TALKED ABOUT NEW ZEALAND. LAST WEEK THEY HAD THAT DISAPPOINTMENT IN THE G.D.P. NUMBERS. AND THAT REALLY INCREASED THE BETS AROUND THE'SING FOR THE COUNTRY AND ALSO LAST WEEK WE HAD SALES UP. WE HAD INDONESIA SURPRISE RATE CUT. TO LOOK AT THAT FINE BALANCE IF THE CENTRAL BANKS ARE ABLE TO REALLY STEP UP TO HELP THESE DONE TRACY: IMPROVE ON THEIR ECONOMIC OUTLOOK. -- THESE COUNTRIES TO IMPROVE ON THEIR ECONOMIC OUTLOOK. AVRIL: AS WE'VE BEEN TALKING ABOUT THE TECH RALLY WHAT'S INTERESTING IS WHAT WE'VE BEEN SEEING IN CRYPTO AND THE LACK OF A RALLY. SOME HAVE POINTED OUT HOW THE LACK OF VOLATILITY ACTUALLY MAKES IT DIFFICULT FOR CRYPTO CURRENCIES TO SURGE EVEN FURTHER. THEY TEND TO DO WELL IN ENVIRONMENTS WHERE THERE'S A LOT OF UP AND DOWN MOVES AND VOLATILITY. WE'RE SEEING GOLD THOUGH. THAT'S WHAT'S REACHING -- SHERY NEAR DAILY RECORD HIGHS. BUT YOU'RE RIGHT. THE VOLATILITY OF THE CRYPTO SPACE, THE LACK OF WE SAW IT REBOUND SINCE JULY OR SO. WHY WOULD YOU INVEST IN CRYPTO WHEN YOU CAN INVEST IN GOLD WHICH CONTINUES AS YOU SAY SHOW THESE NEAR DAILY RECORD HIGHS? AND PERHAPS THE FACT THAT WE ARE SEEING THESE GAINS IN GOLD AND THE FALLS IN THE CRYPTO SPACE ALSO DO NOT GO THAT WELL FOR EQUITIES BECAUSE YOU'RE SEEING SORT OF THIS RISK OFF MOVES WHERE YOU'RE TRYING TO HEDGE TOWARDS THOSE HAVEN ASSETS THAT HAVE BEEN HISTORICALLY DOING WELL WHEN YOU GET THIS RISK-OFF SENTIMENT AROUND THE WORLD. NOT SURPRISING GIVEN THE UNCERTAINTY. AS ONE OF OUR AS ONE OF OUR PRODUCERS PUT I, GOLD IS THE NEW GOAL OF THE STAGE. SO SOMETHING TO -- THIS IS BLOOMBERG. WE'RE TALKING ABOUT WINDS OF AROUND 140 MILES AN HOUR OR SO. AND THAT CATEGORIZED SIMILARLY TO A HURRICANE CATEGORY 4. AND IT'S PASSED THROUGH THE PHILIPPINES ISLAND. THOUSANDS HAVE BEEN EVACUATED AND NOW HONG KONG IS BRACING FOR IMPACT. THAT'S WHERE IT'S HEAD. WE KNOW HOW HKIA IS SUSPENDING THE FLIGHTS. THAT GOING TO BE STARTING FROM 6:00 P.M. LOCAL TIME TODAY FOR THE NEXT 36 HOURS AND HOPE IS IN THURSDAY TIME THAT SOME OF THESE FLIGHTS ACTUALLY RESUME. MORE THAN 500 FLIGHTS WILL BE CANCELED DUE TO THIS INCLEMENT WEATHER. WE ARE EXPECTING THIS SUPER TYPHOON TO BEAR DOWN AS YOU SAY, SHERY. SHERY LOOK AT THOSE WINDS AND THAT FOOTAGE. IT'S REALLY SCARY BECAUSE I'VE LIVED THROUGH SOME TYPHOONS IN HONG KONG. THEY CAN GET MESSY, SCARY. THINGS FLYING AROUND. THE HONG KONG INTERNATIONAL AIRPORT HAS WHAT? 90 PASSENGERS. WE'RE EXPECTING TRADING DISRUPTIONS IN THE MARKETS WITH SOME TRADING DEBUTS ALSO POTENTIALLY HALTED. BUT WE'LL BRING YOU THE MARKET OPENS IN SYDNEY AND SEOUL, JAPAN AWAY ON HOLIDAY. THIS IS BLOOMBERG. THIS IS THE ASIA TRADE. WE ARE COUNTING DOWN TO ASIA'S MAJOR MARKET OPENS. YET ANOTHER RECORD HIGH FOR THIS YEAR. IT DOES BEG THE QUESTION, DOES THIS POSE SOME RISK? WE ALSO HAVE SOME OF THIS VERY SUPPORTIVE FED SPEAK. ESPECIALLY COMING FROM THE NEW FED GOVERNOR, WHO IS NOT ADVOCATING FOR AGGRESSIVE CUTS. WE ARE TALKING ABOUT NVIDIA'S 100 MILLION DOLLAR INVESTMENT INTO OPENAI LEADING TO THAT EXUBERANCE AND THEN YOU HAVE ASML BEING UPGRADED BY MORGAN STANLEY AND THESE TECH EXPECTATIONS CONTINUING TO RALLY. SO IT LOOKS LIKE THE STARS ARE ALIGNING. TAKE A LOOK AT HOW SOUTH KOREA IS FARING. YOU ARE SEEING THAT 0.7% LED BY THE TECH NAMES ALREADY A DAY AGO. WE SAW SAMSUNG ELECTRONICS SURGING ON REPORTS OF GETTING HIS HIGH-BANDWIDTH MEMORY CHIPS FOR APPROVAL. ALSO WORTH NOTING THAT IT'S BEEN INTERESTING THAT EVEN THOUGH SOUTH KOREAN MARKETS HAVE BEEN RALLYING PRETTY HARD THAT HAS NOT NECESSARILY COME ALONG WITH THE CLIMB IN THE KOREAN WON ALTHOUGH IT IS SITTING QUITE FIRM AGAINST THE DOLLAR FOR THE MOMENT AT 1390. THE KOREAN WON ALSO HAVING ITS IDIOSYNCRATIC STORIES BUT ALSO THOSE INVESTMENTS INTO THE U.S. BECAUSE OF THAT TRADE DEAL COULD POTENTIALLY PUT MORE PRESSURE ON THE KOREAN CURRENCY. AND TAKE A LOOK AT HOW AUSTRALIA IS FARING BECAUSE WE ARE SEEING EARLY GAINS THIS WEEK IN THE 10-YEAR YIELD HOLDING AT THAT LEVEL. WE DID GET SOME SPEAK FROM THE RBA GOVERNORS SAYING THE CENTRAL BANK HAS MADE GOOD PROGRESS WHEN IT COMES TO INFLATION AND WE CAN INFLATION NUMBERS OUT OF AUSTRALIA WEDNESDAY. BRENT AT 66. WE HAVE GEOPOLITICAL RISKS TO WATCH OUT FOR. THE UNITED NATIONS GENERAL ASSEMBLY UNDERWAY AND WATCHING THE LATEST ON THE ASX 200. THE ENERGY STOCKS ALSO LEADING THAT RALLY. NOT A LOT OF MOVEMENT IN THE TREASURY SESSION OVERNIGHT BUT WE TALKED ABOUT BIG MOVES IN THE U.S. EQUITY MARKETS WITH AVRIL TALKING ABOUT THE 28TH RECORD RALLY. IT IS HARD TO KEEP TRACK. LET'S BRING IN DANIEL. U.S. STOCKS DOING WELL. WE ARE SEEING A LACK OF VOLATILITY THOUGH. WHAT DO WE DO WITH THAT INFORMATION AND HOW SHOULD WE BE POSITIONING? FROM THE VOLATILITY FRONT IT IS MACRO VERSUS MICRO. WE ALREADY KNOW THAT THE JOB NUMBERS ARE NOT LOOKING SO GOOD SO THAT COMMENT FROM THE FED OVERNIGHT ABOUT BEING MORE AGGRESSIVE ON THE RATE CUT BUT ON THAT FRONT IS A DOUBLE-EDGED SWORD WHERE THE FED WANTS TO CUT BUT THEY ARE ALSO WARY OF THE RETURN AND LET'S NOT FORGET THEY HAVE LOST A LOT OF CREDIBILITY BY SAYING THAT INFLATION IS TRANSITORY. SO THEY DO NOT WANT TO MAKE SIMILAR MISTAKES AGAIN. ON THE OTHER HAND, WE KNOW THAT NVIDIA IS POWERING UP AGAIN, INVESTING IN OPENAI, AND THAT BRINGS THE WHOLE SECTOR UP. SO WHAT IS GOING TO WIN OUT? THE WAY WE SEE IT IS THAT ON THE PULLBACKS, ANY PULLBACKS OF U.S. EQUITIES, ESPECIALLY ON THE TECH SIDE, WE SEE THAT THIS INVESTMENT IN AI IS A STRUCTURAL STORY. SO BY ON DIPS. YOU SAID BRING THE WHOLE SECTOR UP. WHAT IS INTERESTING IS SOME OF THESE SLEEP YOUR TRADES IN TECH, THEY HAVE RESEARCHED. YOU LOOK AT ORACLE AND CHIP EQUIPMENT NAMES. DO YOU THINK THERE'S ENOUGH AI DEMAND TO LIFT ALL BOATS OR IS THIS BECAUSE SOME OF THE MARKET LEADERS ARE GETTING TOO EXPENSIVE AND PEOPLE ARE SEARCHING FOR SECONDARY TRADES? I WOULD SAY THAT THE MARKET LEADERS IN WHAT THEY DO ARE THE ONES THAT ONE SHOULD BE SEEKING AFTER BECAUSE OF THE FACT THAT AI INVESTMENT IS BENEFITING THE BIGGEST PLAYERS AND NOT NECESSARILY ALL THE PLAYERS CAN MAKE IT AND THAT WILL BE THE EVENTUALITY SO BUYING DIPS, YOU SHOULD BE GOING FOR THE BIGGEST PLAYER ON EACH FROM THE MEDIUM TO LONGER TERM. GIVEN THE TECH EXUBERANCE IN THE U.S., WE ARE ALSO SEEING THOSE TECH NAMES ACROSS ASIA RALLY BUT AT THE SAME TIME BROADLY SPEAKING MSCI ASIA NOW PERHAPS HEADED FOR ITS BEST OUTPERFORMANCE SINCE 2018 OR SO. WHAT IS LEADING TO THAT DIVERGENCE OR PERHAPS OUTPERFORMANCE IN THE ASIAN BENCHMARKS? AND COULD WE SEE THAT CONTINUE THROUGH YEAR END? WHAT'S IT HAS TO DO WITH THE WEAKNESS IN THE DOLLAR BECAUSE IF THE DOLLAR IS ON A DOWNTREND OR NOT GOING STRONGER THAN OTHER EQUITY MARKETS IN THE REST OF THE WORLD CAN BENEFIT. IN THIS CASE, IT IS ASIA THIS YEAR. THE WAY WE SEE IT IS THAT THE DOLLAR WILL PROBABLY BE STAYING ON THE WEAK SIDE OF THINGS. IT WILL BE AROUND A 95 TO 96 LEVEL. FOR THE FORESEEABLE FUTURE. SO BASICALLY THAT MEANS THAT ASIA WOULD STILL HAVE MORE UPSIDE TO GO, ESPECIALLY BECAUSE THE GAP IS BIG VERSUS HISTORY. DOES THAT INCLUDE KOREAN STOCKS BECAUSE THEY HAVE AN INCREDIBLE RALLY AND WE TALK ABOUT SAMSUNG AND SK HYNIX BUT GEOPOLITICS MIGHT NOT BE ON ITS SIDE. WE ARE TALKING ABOUT THAT TRADE DEAL AND CONCERNS ABOUT THAT INVESTMENT INTO THE U.S. PRETTY MUCH STALLED. FOR KOREA, IF YOU LOOK AT WHERE IT WAS COMPARED TO ITS OWN HISTORY, IT IS NOT LOOKING SO INEXPENSIVE ANYMORE. SO RIGHT NOW I REMEMBER THAT THE MSCI IS TRADING AROUND 10.5 TIMES FORWARD-LOOKING PE AND THAT IS PRETTY MUCH ON THE AVERAGE SIDE OF THINGS VERSUS HISTORY SO FROM THAT PERSPECTIVE THE LOW HANGING FRUIT IN KOREA IS OVER AND WHAT WE ARE ADVOCATING INSTEAD, ONE SHOULD BE TRIMMING DOWN SOME OF THE EXCESSIVE PROFIT AND ROTATING INTO OTHER MARKETS. CHINA IS STILL LOOKING CHEAP AT THIS MOMENT IN TIME. WHAT IN CHINA SPECIFICALLY? WE ARE LOOKING AT AREAS LIKE TECHNOLOGY PRIMARILY, SO THE INTERNET, SPACE, AND WE FEEL THAT THAT VERSUS THE U.S. TECH HAS STILL GOT SOME UPSIDE TO GO. THERE IS STILL SOME CATCH UP. OF COURSE CHINA IS DEVELOPING ITS OWN SEMICONDUCTOR SIDE OF THINGS SO FROM THAT PERSPECTIVE WE DO LIKE THE PROSPECTS THERE. ALSO, THE CONSUMPTION PATTERN IN CHINA IS CHANGING. SO PREVIOUSLY THEY WERE LOOKING AT BIG-TICKET ITEMS AND NOW THEY ARE LOOKING AT SPENDING ON THE SMALLER TICKET ITEMS AND THOSE ARE THE ONES THAT WE LIKE ALSO. THAT IS A VERY INTERESTING TAKE BECAUSE WHEN WE TALK ABOUT THE DOMESTIC ECONOMY IN CHINA WE ARE CONCERNED ABOUT THE PROPERTY SECTOR SO COULD WE SEE THAT BEING SUPPORTED BY THESE CONSUMPTION PATTERNS CHANGING? THE FACT THAT THE PROPERTY SIDE OF THINGS IS PROBABLY GOING TO BE STALLING AT THESE LEVELS MEANS THAT IN TERMS OF WHAT PEOPLE SPEND THEIR MONEY ON IS GOING TO MOVE TO OTHER ITEMS SO THE PROPERTY SECTOR WILL PROBABLY BE STALLING AT THESE LEVELS. IN TERMS OF NEAR-TERM UPSIDE, UNLIKELY AT THIS MOMENT IN TIME. JUST ONE FINAL QUESTION FOR YOU. DO YOU THINK THIS IS A RALLY THAT NEEDS A CUT FROM CHINESE AUTHORITIES, A RATE CUT, BECAUSE THE WORRY ALSO IS THAT THAT COULD FURTHER STALL WHAT SOME THINK IS A BUBBLE IN THE STOCK MARKET. IN TERMS OF A BUBBLE, IF YOU LOOK AT THE MARGIN FINANCING SIDE OF THINGS IN CHINA, IT IS HIGH ON AN ABSOLUTE BASIS BUT THAT IS -- SHOULD BE COMPARED AGAINST MARKET CAPITALIZATION. SO RIGHT NOW IT IS AS HIGH AS WHAT WE SAW WHEN THE GOVERNMENT CAME IN AND COOLED DOWN THE MARKETS AND THAT LED TO A BIG CORRECTION AT THAT TIME BUT IF YOU COMPARE THAT TO THE MARKET CAPITALIZATION NOW IT IS ACTUALLY NOT AT A HIGH LEVEL. SO IN THE NEAR TERM WE STILL DO NOT SEE A SIGNIFICANT COOLING MEASURE FROM THE GOVERNMENT TO BRING DOWN THE STOCK MARKET. SO I BELIEVE THAT AGAIN FOR CHINA IT WILL BE BUYING THE DIP FOR INVESTORS. GOOD TO HAVE YOU WITH US. WE ARE KEEPING AN EYE ON THESE KOREAN NAMES WE ARE WATCHING, ESPECIALLY WHEN IT COMES TO THE CHIP SECTOR. NVIDIA NOW AND THE OVERNIGHT SESSION TALKING ABOUT THAT INVESTMENT IN OPENAI SO WE ARE WATCHING THE BROADER TECH SECTOR. SO WE HAD BIG UPSIDE IN THE OVERNIGHT SESSION. WE HAD SEEN THAT UPSIDE WHEN IT CAME TO SAMSUNG STOCKS BECAUSE IT'S ALREADY TRADING AT THAT JULY 2024 HI. REPORTS TO MYSTICALLY THAT THEY HAVE ACQUIRED CERTIFICATION WHEN IT COMES TO THE LATEST ADVANCED CHIP, THAT LEADING TO A 20% GAIN. AND YOU CAN SEE THE BROAD CHIP SECTOR ACROSS SOUTH KOREA IN THE GREEN. ALSO KEEPING TABS ON SOME OF THESE DEFENSE STOCKS. A COUPLE OF DRIVERS ACROSS CURRENTS THAT WE ARE KEEPING TABS ON FROM THE EUROPEAN SIDE GIVEN HOW NATO BORDER TENSIONS HAVE ESCALATED. WE ALSO HAVE THE UNITED NATIONS SECURITY COUNCIL SETTING TO MEET ON THIS ESTONIAN AIRSPACE VIOLATION FROM THE RUSSIANS. WE HAVE BEEN SEEING TRUMP ADVOCATE FOR COUNTRIES TO UP THEIR DEFENSE SPENDING AND SOME OF THESE KOREAN NAMES HAVE BENEFITED FROM WITH THE UNDERCURRENTS ARE FOR THE MOMENT. WE WILL HAVE MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪ CHIP STOCKS ACROSS ASIA GAINING GROUND. WE HAD SEEN A BIG RALLY FROM WALL STREET ON NVIDIA'S PLANS TO INVESTIGATE IN OPENAI. LET'S BRING IN ANNABELLE DROULERS IN HONG KONG. HOW BIG OF AN INVESTMENT IN HOW CONSEQUENTIAL WILL THIS BE FOR OPENAI AND NVIDIA? > > IT'S A MAJOR INVESTMENT. IT IS UP TO 100 BILLION DOLLARS. SO IT'S SIGNIFICANT BUT IT WILL BE COMING IN STAGES. WE HAD A LETTER OF INTENT SIGNED BETWEEN THE COMPANIES. WE SPOKE WITH SOURCES TO TRY TO UNDERSTAND MORE DETAILS ON THIS. IT'S GOING TO BE ROLLED OUT INCREMENTALLY. YOU HAVE THAT LETTER OF INTENT IN PLACE. $10 BILLION WILL BE DEPLOYED. NVIDIA IS MAKING THAT INVESTMENT IN CASH. OPENAI WILL BE RECEIVING OPENAI EQUITY AS PART OF THE DEAL. FURTHER INCREMENTS ARE GOING TO FOLLOW AS EACH GIGAWATT OF POWER IS DEPLOYED. 10 GIGAWATTS TOTAL IS THE OVERALL AIM HERE. 10 GIGAWATTS, YOU NEED TO ALSO EMPHASIZE THAT, BECAUSE YOU ARE TALKING ABOUT THE ENTIRE POWER DEMAND FOR NEW YORK CITY WHEN IT'S OPERATING AT PEAK DEMAND. A HUGE AMOUNT OF ENERGY IS EXPECTED TO COME ONLINE. IN TERMS OF THE MARKET REACTION, WE CONTINUE TO SEE THAT RALLY. NVIDIA CLOSING UP NEARLY 4%. AND IT'S IMPORTANT BECAUSE OPENAI GETS THAT FUNDING TO CONTINUE FOCUSING ON AI INFRASTRUCTURE AND WHAT IS NEEDED FOR AI TECHNOLOGY BUT NVIDIA CONTINUES TO TAKE THAT PLACE AT THE CENTER OF THE AI ECOSYSTEM. IT RETAINS OPENAI AS A KEY CUSTOMER FOR ITS TECHNOLOGY BECAUSE THESE DATA CENTERS WILL BE USING NVIDIA CHIPS SO EVEN IF THEY START TO LOOK FOR OTHER SUPPLIERS STILL THEY CEMENT THEIR ROLE. SO SOMETHING TO TAKE AWAY FOR BOTH COMPANIES. THAT IS MASSIVE HERE. JUST TALKING US THROUGH THE COMPUTING POWER AND CAPABILITIES. TALK TO US ABOUT THE FRAMEWORK FOR THIS U.S.-TRY DEAL BECAUSE WE ARE GETTING MORE DETAILS. WHAT IS SIGNIFICANT ABOUT WHAT HAS COME OUT SO FAR? WHAT WE GOT FROM LAST WEEK AND THE TALKS THAT HAVE BEEN ONGOING BETWEEN THE U.S. AND CHINA WAS THE MAIN STICKING POINT RELATED TO THE ALGORITHM. THE U.S. LAW THAT MANDATES THE SALE OF TIKTOK PROHIBITS THEM FROM HAVING ANY KIND OF OPERATIONAL ROLE WITHIN THE SOFTWARE IN THE U.S.. CHINESE LAW ALSO PROHIBITS THE EXPORT OF SUCH SENSITIVE TECHNOLOGIES SO IT WAS A KEY QUESTION OF HOW THEY WOULD BE MANAGING THIS TECHNOLOGY. WHAT WE UNDERSTAND AND WHAT HAS BEEN OUTLINED BY A U.S. OFFICIAL IS ESSENTIALLY THAT THE U.S. CONSORTIUM WILL BE LICENSING A COPY OF THIS TECHNOLOGY. IT IS INJURY'S SILVERLAKE, ORACLE PERHAPS TAKING A SMALL STAKE AS WELL. BUT IMPORTANTLY, WHEN IT COMES TO RETRAINING THIS ALGORITHM FROM THE GROUND UP, WE UNDERSTAND ORACLE WILL BE TAKING ALL THE DATA THAT WILL ALSO BE SAFEGUARDED BY ORACLE IN ITS CLOUD SYSTEMS AS WELL. AND ESSENTIALLY THEY WILL HAVE COMPLETE CONTROL OVER HOW THAT ALGORITHM BEHAVES IN THE U.S. AND ALSO HAVE ACCESS ALTHOUGH IT WILL BE KEEPING INFORMATION ON U.S. USERS OR SUBSCRIBERS AND THE MAIN GOAL IS THAT BYTEDANCE WILL NOT BE HAVING ANY ACCESS TO THAT. SO IS THAT ENOUGH TO SATISFY BOTH SIDES? IT IS INTERESTING HOW A COMPANY LIKE ORACLE IS NOW SORT OF FRONT AND CENTER AMID ALL THESE DEVELOPMENTS. OUR ASIA TECH CORRESPONDENT WITH US IN HONG KONG. BIPARTISAN U.S. HOUSE DELEGATION VISITING CHINA IN THE MEANTIME AND IT IS CALLING ON BEIJING TO FURTHER OPEN ITS MARKETS TO AMERICAN BUSINESSES AS THE SIDES LAY THE GROUNDWORK FOR A MEETING NEXT MONTH BETWEEN PRESIDENTS AND XI JINPING. STEPHEN ENGLE IS IN HONG KONG. SO HOW RECEPTIVE ARE THE CHINESE GIVEN THE OVERALL STRAINS IN THIS RELATIONSHIP? I THINK IT IS POSITIVE FOR THE U.S. DELEGATION, THE FACT THAT THEY ARE MEETING SOME OF THE TOP CHINESE OFFICIALS. THEY ARE UNLIKELY TO MEET WITH XI JINPING BUT DID MEET WITH THE PREMIER SUNDAY AFTER ARRIVING IN BEIJING, THE FIRST SENIOR HOUSE VISIT TO CHINA IN SIX YEARS, SO PRE-PANDEMIC IN 2019 WAS THE LAST HOUSE DELEGATION VISIT TO CHINA. YOU SEE THE EATING WITH THEIR TOP TRADE NEGOTIATORS. THEY ALSO MET WITH THE DEFENSE MINISTER OF CHINA SO IT IS ENCOURAGING THAT THEY ARE HAVING HIGH-LEVEL RECIPROCAL TALKS IN BEIJING AT A TIME WHEN THE TRADE RELATIONSHIP IS DIFFICULT TO SAY THE LEAST. AND I GUESS YOU COULD SAY AS WELL THAT THEY ARE LAYING THE GROUNDWORK FOR THAT POTENTIAL MEETING BETWEEN XI JINPING AND DONALD TRUMP ON THE SIDELINES AND A LITTLE OVER A MONTH FROM NOW AND ALSO WHAT DONALD TRUMP SAYS WILL BE A VISIT TO CHINA SOME TIME IN THE BEGINNING PART OF 2026. SO THERE'S LESS TO BE DONE, ESPECIALLY ON ONE OF THE MAIN EMPHASES OF THIS VISIT, THAT THAT MAN ON THE LEFT IS THE FORMER CHAIRMAN OF THE HOUSE ARMED SERVICES COMMITTEE AND HE HAS STRESSED THE IMPORTANCE OF BETTER MILITARY TO MILITARY DIALOGUE, WHICH HAS BEEN FRACTURED FOR MANY YEARS. IT WAS PETE HEGSETH AND HIS COUNTERPART WHEN THEY HAD THEIR FIRST PHONE CALL EARLIER THIS MONTH, SO THAT IS ONE OF THE EMPHASES OF THESE TRIPS AS WELL. WHEN IT COMES TO DIFFERENT SEGMENTS OF TRADE NEGOTIATIONS HOW HIGH UP ARE THE TALKS AROUND THE CONVERSATIONS AROUND U.S. AGRICULTURAL EXPERT -- EXPORTS TO CHINA? SOYBEANS IS A GOOD EXAMPLE BECAUSE WE ARE SEEING ALREADY AND THE HARVEST HAS BEGUN IN THE U.S. ACROSS THE AGRICULTURAL SECTOR AND IF YOU LOOK AT THE DELEGATION THEY ARE FROM HIGHLY AGRARIAN STATES. ADAM SMITH IS FROM WASHINGTON STATE. THEIR TOP EXPORTS ARE WHEAT AND BEEF AND HAY AND SOYBEANS AND THEN YOU HAVE MICHAEL BAUMGARTNER ALSO FROM WASHINGTON STATE. YOU HAVE RO KHANNA FROM CALIFORNIA, ANOTHER HIGHLY AGRARIAN STATE, AND PENNSYLVANIA, CHRISSY HOULAHAN. I THINK TRADE IS KEY BECAUSE WHAT WE ARE SEEING FROM DATA ALREADY IS THAT THE CHINESE HAVE SORT OF PAUSED THEIR PURCHASE OF SOYBEANS. KEEP IN MIND, HALF THE CROP OF SOYBEANS TRADITIONALLY GOES TO CHINA BUT BY DATA OF THE BEGINNING OF THE MARKETING SEASON, CHINA IS NOT BUYING U.S. SOYBEANS. THEY HAVE DIVERSIFIED THEIR SOURCING TO PLACES LIKE BRAZIL. IT IS ANOTHER LEVER CHINA IS SEEING IF IT CAN THE PLOY. OUR CHIEF NORTH ASIA CORRESPONDENT THERE. WE HAVE MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪ LET'S TAKE A LOOK AT HOW U.S. CROSS ASSETS ARE FARING BECAUSE WE ARE GETTING THIS FLURRY OF FED SPEAK, A SIGN FROM STEPHEN MYRON, AND THIS DOVISH COMMENTARY. CHAIR POWELL IS SAID TO SPEAK TUESDAY AND MYRON IS THE OUTLIER. THERE'S A MODEST AMOUNT OF TARIFFS GOING TO CONSUMERS SAYING THAT INFLATION IS TOO HIGH AND THEY NEED TO BE CAUTIOUS AND OF COURSE SAYING THAT THERE'S LIMITED ROOM FOR CUTS AMID ELEVATED INFLATION. WE ARE SEEING BOND FUTURES LITTLE CHANGED FOR THE MOMENT BUT THE DOLLAR AFTER YESTERDAY'S SLUMP A LITTLE HIGHER. IN U.S. STOCK FUTURES POINTING TO A DOWNSIDE. ON STEPHEN MYRON'S COMMENTS, A NEW FED GOVERNOR TALKING ABOUT HOW THE NEUTRAL RATE OF INTERESTS HAS BEEN PUSHED LOWER BY TARIFFS. SPEAKING TO BLOOMBERG AT THE ECONOMIC CLUB OF NEW YORK THEY TOLD US WHAT HE WANTS A TOTAL OF 150 BASIS POINTS OF EASING THIS YEAR. I EXPECT THE SECOND HALF OF THE YEAR INTO NEXT YEAR TO BE BETTER IN TERMS OF GROWTH IN LARGE PART BECAUSE THE EFFECTS OF THE TAX BILL WILL BE KICKING IN AND UNCERTAINTY IS DISSIPATING. AND I VIEW A LOT OF THAT AS EXPANDING THE SUPPLY-SIDE AT THE SAME TIME AS THE DEMAND SIDE. IF ACTUAL AND POTENTIAL OUTPUT ARE MOVING AT THE SAME TIME IT DOES NOT NECESSARILY IMPLY HAWKISH POLICY BECAUSE THEY ARE NOT EXPANDING IF THEY ARE BOTH MOVING AT THE SAME TIME. INSTEAD MY VIEW IS THAT POLICY IS ROUGHLY TWO POINTS TOO RESTRICTIVE AND EVEN THOUGH I AM EXPECTING GROWTH TO BE BETTER IN THE FUTURE THAT COULD GET DERAILED UNNECESSARILY AND CREATE THAT GAP WHERE ONE MAY NOT EXIST IF WE DON'T GET POLICY CLOSER TO NEUTRAL. NOW, BECAUSE OF THE DISTANCE, IT IS MY VIEW THAT IT IS MORE APPROPRIATE TO MOVE MORE QUICKLY. A PANICKY MOVE WOULD BE SOMETHING LIKE 75 BASIS POINTS OR MORE. I AM NOT PANICKED BUT I SEE THE RISKS GROW THE LONGER YOU REMAIN ABOVE NEUTRAL. NOBODY WANTS TO MOVE QUITE AS QUICKLY AS YOU DO. WHAT IS IT THAT CONCERNS YOU ABOUT THE LABOR MARKET? THE FIRST HALF OF THE YEAR IS NOT AS STRONG AS WE WOULD HAVE LIKED. WE LEARNED OF THE LABOR MARKET CONTINUED TO LOSE MOMENTUM. THAT MEANS THAT EVEN THOUGH I THINK GROWTH WILL MOVE UP FROM HERE, THERE ARE CONCERNS THAT THINGS HAVE BEEN MOVING IN THE WRONG DIRECTION AND IF YOU KEEP POLICY THIS DEGREE OF RESTRICTIVE FOR TOO LONG YOU WILL NOT ALLOW THINGS TO MOVE IN THE OTHER DIRECTION SO YOU WILL CREATE A SITUATION WHERE IT EXPANDS. TO ME IT IS AN IMPERATIVE THEY GET CLOSER TO NEUTRAL QUICKLY SO I FELT THAT WAS THE APPROPRIATE POLICY. AND YOU DON'T SEE THAT AS PANIC? NO. IF I WERE PANICKING I WOULD TELL PEOPLE. A LOT OF BUSINESSES SAY THAT YOU TALK IN YOUR SPEECH AND JUST NOW ABOUT HOW RATES ARE TOO RESTRICTIVE BUT A LOT OF BUSINESSES I HAVE BEEN HEARING FROM SHOW THAT SOME OF THE PULLBACK IN INVESTMENT IS NOT LINKED TO THE RESTRICTIVE RATE ENVIRONMENT BUT HAS TO HAVE TO DO WITH POLICY RELATED UNCERTAINTY. HOW DO YOU ACCOUNT FOR THAT? THERE'S DIFFERENT INTEREST RATES IN THE ECONOMY AND DIFFERENT TYPES OF INVESTMENT. THERE ARE PARTS OF THE ECONOMY THAT HAVE BEEN AFFECTED BY THAT AND I DO THINK THAT TYPE OF UNCERTAINTY IS NOT TOTALLY GONE BUT LESS HAN WHAT IT WAS A FEW MONTHS AGO. HOWEVER, IF YOU LOOK TO OTHER SECTORS LIKE HOUSING, IT IS CLEAR THAT RATES ARE THE PRIMARY IMPEDIMENT TO INVESTING IN HOUSING AND BUILDING MORE HOUSING AT THE MOMENT. I DON'T THINK THAT IS A FUNCTION OF TRADE POLICY UNCERTAINTY. OF TRADE POLICY UNCERTAINTY. TAKE A LOOK AT HOW MARKETS ACROSS ASIA ARE TRADING. YOU CAN SEE THE COST BEGINNING .6%, BEING LED HIGHER BY TECH. SAMSUNG ALSO CONTINUES TO GAIN GROUND. THE TARGET PRICE WAS RAISED. IT'S BEEN ALREADY OF THE HIGHEST SINCE JULY ON EXPECTATIONS OF NVIDIA IS DEMAND FOR THEIR LATEST AND MOST ADVANCED CHIPS AND REPORTS IN LOCAL MEDIA THAT THAT HAD PASSED A QUALIFICATION TEST. THE ASX 200 ALSO GAINING GROUND, BEING LED HIGHER BY MATERIALS, TECH AND ENERGY. TAKE A LOOK AT COMMODITY PRICES AS WELL AS GOLD HAS BEEN RALLYING. THE TAILWIND REALLY COMING FROM THESE FED EXPECTATIONS. A SLIDE IN THE DOLLAR OR THE DOLLAR UNDER PRESSURE OVERALL AND GOLD IS JUST REACHING THESE FRESH RECORDS. WHAT'S BEEN INTERESTING AMID THESE MOVES IS HOW THE RISK ON RALLY HAS NOT NECESSARILY BENEFITED CRYPTOCURRENCIES. ETHER SLUMPED A DAY AGO AND WE SAW MORE THAN 1.45 BILLION DOLLARS IN BULLISH WAGES BEING LIQUIDATED. SO IT DOES RAISE QUESTIONS ABOUT CRYPTO'S PLACE IN THIS RISK ON RALLY. LET'S BRING IN OUR CRYPTO REPORTER. WHY ARE WE NOT SEEING CRYPTO RALLYING ALONG WITH THE RISK THAT WE ARE SEEING IN STOCKS AND WHAT IS THE MOOD AMONG CRYPTO TRADERS AFTER THAT BIG SELLOFF YESTERDAY? THE REASON -- IT IS KIND OF AN IDIOSYNCRATIC REASONS SPECIFIC TO CRYPTO RESTRICTING THE RALLY FROM SPILLING OVER TO CRYPTO THIS TIME AROUND. IT IS BASICALLY FATIGUED AND SHORTSELLING. THERE'S A HUGE AMOUNT OF LONG LIQUIDATIONS WE SAW FOR THE BULLISH BETS AND THAT IS COMING FROM FATIGUED IN THE LAST COUPLE OF MONTHS. WE HAVE SEEN ABOUT 200 BILLION DOLLARS WORTH OF BITCOIN AND SMALLER COINS BEING LAPPED UP BY DIGITAL ASSET TREASURY COMPANIES TO HOARD THEM ON THEIR BALANCE SHEET. SO THAT KIND OF DEMAND IS KIND OF TAPERING OFF. AND WE ARE SEEING A LITTLE BIT OF A SELLING ON THOSE ACCOUNTS AS OF NOW. SO THAT IS ONE PART TO DO WITH IT. THE OTHER REASON IS WE ARE GOING AHEAD -- THE MOOD -- I MEAN, WE HAVE SEEN SOME KIND OF RETRENCHMENT FROM THE LOWS, BUT THE OVERALL MOOD IS QUITE CONSCIOUS AND NEGATIVE TO BE HONEST. THAT IS BECAUSE THERE'S A LOT OF MASSIVE X PARIS THIS FRIDAY FOR BITCOIN -- MASSIVE EXPIRY FOR BITCOIN AND ETHER FRIDAY. SO THOSE ARE THE KIND OF WORRIES THAT ARE WEIGHING ON THE CRYPTOCURRENCY MARKET AS OF NOW. AND YET WHAT IS THE TRAJECTORY FOR CRYPTO? BECAUSE WE CONTINUE TO SEE THE BROAD SUPPORT, SPECULATION THAT THEY COULD BE PARDONED BY THE PRESIDENT. HE IS A FORMER BIDEN CEO AS WELL SO THERE SEEMS TO BE BROADER OPTIMISM. INDEED. YOU ARE RIGHT. BASICALLY IT IS ABOUT THE OVERALL REGULATORY ENVIRONMENT AND IT IS LED BY THE TRUMP ADMINISTRATION. AND ASIA IS CATCHING UP. YOU WILL SEE A LOT OF CONFERENCES HAPPENING AROUND THIS TIME OF THE YEAR. WE HAD BITCOIN ASIA IN HONG KONG AND SINGAPORE NEXT WEEK. SO A LOT OF EVENTS HAPPENING IN INVESTMENTS COMING INTO THE MARKET. SO IT'S NOT CLEARLY A LONG, BEARISH RUN GOING AHEAD. AS OF NOW THERE'S A LITTLE BIT OF FATIGUE BUT THERE IS A LOT OF INVESTOR SENTIMENT AROUND THIS ASSET CLASS, INCLUDING FROM THE TRADITIONAL FINANCE INSTITUTIONS, AS WE SPEAK, IN CRYPTO. SO WE CANNOT CLEARLY SAY THE GAME IS OVER. IT IS STILL VERY MUCH IN PLAY. I KNOW YOU HAVE BEEN TRACKING CLOSELY AS WELL THE ENVIRONMENT AROUND BITCOIN TREASURIES OR CRYPTO TREASURIES. HOW IS THAT A FACTOR IN WHAT WE ARE SEEING IN THE OVERALL SPACE? SO BASICALLY THE DIGITAL ASSETS TREASURY PLAY IS THE HOTTEST IN THE MARKET NOW. THAT IS LEADING THE DEMAND AS OF NOW IN CRYPTO AND THAT IS SPILLING OVER TO OTHER PARTS OF THE CRYPTO UNIVERSE. BUT WE HAVE SEEN THE PUBLICLY TRADED COMPANIES ARE LOSING -- THE SHARE PRICES ARE COMING OFF. THERE'S QUITE A BIT OF CONSOLIDATION, AS WE SAW WITH THE BUYING UP OF ANOTHER DIGITAL ASSET COMPANY IN THE U.S. SO WE ARE ALSO SEEING CONSOLIDATION COMING UP IN THIS DIGITAL ASSET TREASURY PLAY. WHAT WE CAN SAY IS A LOT OF NEWS IS STILL EXPECTED. OUR CRYPTO REPORTER WITH THE LATEST ON THE CRYPTO UNIVERSE. THIS AS WE LOOK AHEAD TO THE MARKET OPENS IN CHINA ALTHOUGH HONG KONG IS HUNKERING DOWN FOR A TYPHOON. WHEN HE JOINS US WITH THE LATEST. WE COULD SEE TRADING BEING HIT IN THE HONG KONG SESSION BUT NOT ONLY TRADING BUT PUBLIC DEBUTS COULD BE DELAYED AS WELL. THAT IS RIGHT. NOW ALL EYES ARE ON THIS SUPER TYPHOON THAT IS APPROACHING HONG KONG AND FOR NOW WE ARE EXPECTING MAYBE IT WILL BE ESCALATED TO T EIGHT LATER TODAY AND ACTUALLY THAT IS AFFECTING THE TRADING YOU MENTIONED, THE TEAM BEING ONE OF THEM. AND IT ACTUALLY WILL BE ONE OF THE BIGGEST IPOS THAT WE ARE GOING TO SEE IN THE PAST FEW MONTHS BUT IT'S GOING TO BE MOST LIKELY DELAYED IF WE ARE STILL TO HAVE THIS TYPHOON WEDNESDAY MORNING. SO THAT IS KIND OF AFFECTING INVESTOR SENTIMENT BECAUSE REALLY WE HAVE BEEN EXCITED ABOUT THESE HONG KONG IPOS THAT HAVE BEEN ACTIVE IN THE PAST FEW MONTHS BUT WHEN YOU LOOK AT THE BROADER MARKET SENTIMENT RIGHT NOW, IT'S NOT PARTICULARLY -- WE ARE KIND OF TAKING A STEP BACK. WE TALKED ABOUT HOW THERE WAS THE TRUMP-ZI OVER THE WEEKEND > > AND IT WAS OVERALL A POSITIVE TONE BUT THERE IS STILL QUESTIONS AROUND WHAT KIND OF COURT TRADE OR TECHNOLOGY NEGOTIATIONS WILL BE COMING OUT OF THE TALKS SO MOST LIKELY THINGS ARE GOING TO BE LOOKING SLIGHTLY TEPID INTEL THERE'S GOING TO BE MORE BREAKTHROUGHS COMING OUT OF THESE CALLS. LUCKILY THEY WILL BE MEETING AT THE SUMMIT NEXT MONTH, SO THAT WILL KIND OF KEEP THE SENTIMENT CAP BUT RIGHT NOW OVERALL, WHEN WE LOOK AT THE MARKET, IT'S REALLY BEING DRIVEN BY THESE INDIVIDUAL MOVERS AS WELL. WE TALKED ABOUT BYD YESTERDAY AND THAT'S AFTER HOLDING THAT STOCK FOR THE PAST 17 YEARS. SO A BIT OF A SHIFT IN SENTIMENT AS WELL. BUT GOING FORWARD, INVESTORS ARE STILL LOOKING FOR SOME OF THE KEY CATALYSTS WE ARE WATCHING. WE GOT THAT LPR RATE ON HOLD BUT OVERALL STILL EXPECTING THE CENTRAL BANK IN THE GOVERNMENT TO BE ON THE MORE EASING PATH, ESPECIALLY AFTER THE FED HAS ALREADY CUT ITS RATE AND ALSO IF WE ARE EXPECTING TO SEE MORE TECHNOLOGY EVENTS. WE SAW THAT WITH ALIBABA IN THE PAST FEW WEEKS AND IF THAT IS TO CONTINUE TO HAPPEN AND IF WE WILL SEE MORE PROGRESS IN TERMS OF THE U.S.-CHINA RELATIONSHIP. WINNIE, THANK YOU. WE WILL HAVE MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪ LEADERS OF THE WORLD ARE IN NEW YORK FOR THE UNITED NATIONS GENERAL ASSEMBLY, INCLUDING AUSTRALIA'S PRIME MINISTER. HE WILL ATTEND A RECEPTION HOSTED BY PRESIDENT TRUMP TUESDAY NIGHT BUT THE WHITE HOUSE HAS NO ALL BUT CONFIRMED THERE WILL BE NO ONE-ON-ONE MEETING. THE BRIEF ITINERARY LISTS SEVERAL BILATERAL TALKS. TENSIONS BETWEEN THE LEADERS HAVE INCREASED OVER TARIFFS AND CRITICAL MINERALS. LET'S BRING IN THE DIRECTOR OF THE ECONOMIC SECURITY PROGRAM AT SYDNEY UNIVERSITY. DOES THIS GIVE US AN INDICATION OF THE LACK OF A SIT DOWN BETWEEN THE TWO LEADERS OF WHERE THE RELATIONSHIP IS HEADED AND POTENTIAL PITFALLS AHEAD? THE AUSTRALIAN PRIME MINISTER HAS BEEN ATTEMPTING TO GET A MEETING WITH PRESIDENT TRUMP FOR QUITE SOME TIME. LUCKILY AUSTRALIA'S DEFENSE MINISTER DID MEET WITH HIS COUNTERPART LAST MONTH IN WASHINGTON, D.C. WHEN YOU THINK OF PRIME MINISTER ALBANESE AND PRESIDENT TRUMP, THEY COME FROM DIFFERENT PARTIES. IN THE UNITED STATES, DONALD TRUMP IS MUCH MORE INTERESTED IN ENERGY DOMINANCE AND DEFENSE. SO YOU SEE DIFFERENT PRIORITIES, DIFFERENT POLITICAL PARTIES, BUT IT'S IMPORTANT THAT THE AUSTRALIAN PRIME MINISTER DOES EVENTUALLY MEET WITH PRESIDENT TRUMP. HOPEFULLY THAT COULD HAPPEN IN OCTOBER OR NOVEMBER IN SEOUL, BUT THAT MEETING COULD ALSO BE DOMINATED BY THE FIRST TRUMP-XI MEETING IN ABOUT FIVE YEARS TIME. THEY HAVE NOT MET YET SO HOPEFULLY THERE CAN STILL BE A MEETING IF THEY GET THEIR DUCKS IN A ROW. YOU WOULD THINK THAT WASHINGTON WOULD BE INTERESTED IN BUILDING THIS NON-CHINESE SUPPLY CHAIN AROUND SOME OF THESE CRITICAL MINERALS. HOW CONSEQUENTIAL COULD THIS BE FOR THE U.S.-AUSTRALIA ALLIANCE? THAT IS EXACTLY RIGHT. ONE OF THE AREAS WHERE AUSTRALIA AND THE U.S. COULD WORK TOGETHER MORE CLOSELY IS AN AREA PRESIDENT TRUMP HAS MENTIONED FOR YEARS THAT HE IS INTERESTED IN, CRITICAL MINERALS. WHILE THE U.S. WANTS TO DO A LOT OF ITS OWN MINING AND PROCESSING DOMESTICALLY, IT SIMPLY DOES NOT HAVE ALL THE CRITICAL MINERALS THAT IT NEEDS SO IT NEEDS PARTNERS LIKE AUSTRALIA THAT HAVE RARE EARTH ELEMENTS AND OTHER CRITICAL THINGS THAT GO NOT ONLY INTO ENERGY SOURCES BUT A LOT OF DEFENSE CAPABILITY. FOR INSTANCE, THERE'S A STRONG LINK BETWEEN AUKUS AND CRITICAL MINERALS BECAUSE THERE'S FOUR TONS OF CRITICAL MINERALS THAT GO INTO EVERY UNIT. SO ANY PART OF THE MEETING WILL BE A CRITICAL MINERALS ACCORD. IT IS ONE AREA THAT BOTH LEADERS COULD SEE I TO ION. THE TRICK FOR AUSTRALIA WILL BE CONVINCING PRESIDENT TRUMP AND HIS ADMINISTRATION TO INVEST DOMESTICALLY AND AUSTRALIA. RIGHT NOW, THE U.S. HAS INVESTED A LOT IN MINERALS PROJECTS IN THE U.S. THEY HAVE INVESTED IN AUSTRALIAN COMPANIES TO MIND IN THE U.S. AND PRESIDENT TRUMP HAS ALSO SPENT A LOT OF MONEY IN A HISTORIC DEAL EARLIER THIS YEAR IN JULY. THERE WERE $550 MILLION SPENT ON THAT RARE EARTH COMPANY AS WELL AS APPLE PUTTING IN 500 MILLION. SO ALL THAT INVESTMENT IN THAT ONE MINE, AUSTRALIA WOULD LIKE TO SEE SOME OF THAT INVESTMENT AND SOME JOINT VENTURES SO WE CAN CODEVELOP THIS CRITICAL ASSET. WHAT ABOUT WHAT SORT OF INVESTMENTS ARE NEEDED FROM THE AUSTRALIAN SIDE, MORE PUBLIC INVESTMENTS INTO RARE-EARTH? THAT IS A PRIORITY OF THE GOVERNMENT AS WELL. THEY HAVE A CRITICAL MINERALS STRATEGY HOPING TO INVEST MORE IN AUSTRALIAN MINING AND MAPPING THESE CRITICAL MINERALS BECAUSE ALTHOUGH WE KNOW WE HAVE A LOT OF THEM WE DO NOT KNOW EXACTLY THE WANTED TO EASE AND WHAT WILL BE INVOLVED IN TERMS OF DIGGING THEM UP AND THE PROCESSING. SO OVER THE NEXT FEW YEARS WE WILL SEE THE AUSTRALIAN GOVERNMENT INVEST MORE DOMESTICALLY. EVEN THE RESOURCES MINISTER HAS FLOATED THE IDEA OF LOWERING THE PRICE. THAT WOULD BE A GAME CHANGER FOR THE INDUSTRY BECAUSE CHINA IS DOMINATING THAT SPACE. THAT IS ABLE TO FLOOD THE MARKET WITH A SURPLUS OF MINERALS TO TANK THE PRICE. AND IT WOULD REALLY GIVE OUR INDUSTRY CONFIDENCE AND GIVE BANKS AND SUPERANNUATION COMPANIES CONFIDENCE TO MAKE LONGER-TERM INVESTMENTS IN AUSTRALIAN MINING AND OTHER AREAS OF COOPERATION WHERE COUNTRIES COULD POSSIBLY DO THE PROCESSING. WE SEE A LOT OF PROCESSING HAPPENING IN MALAYSIA. THERE'S QUESTIONS OVER WHETHER THAT COULD ALSO HAPPEN IN VIETNAM. SO THERE'S A LOT TO DISCUSS. UNDEREXPLORED BUT IT DOES MAKE YOU WONDER WHETHER THE COMPETITION FOR THE LIKES OF AUSTRALIA IS JUST WITH CHINA GIVEN HOW SOME OF THESE OTHER COUNTRIES ARE ENHANCING THEIR PROCESSING CAPABILITIES HOW ELSE CAN AUSTRALIA CAPITALIZE ON ALL OF THIS? ONE OF THE WAYS WOULD BE ACTUALLY TO WORK WITH A BUYERS CLUB ON DIFFERENT COUNTRIES, NOT JUST THE U.S. BUT CANADA, SOUTH KOREA, JAPAN, PERHAPS THE U.K. OR INDIA. I KNOW THEY HAVE BEEN THINKING AND TALKING ABOUT CRITICAL MINERAL SUPPLY CHAINS FOR QUITE SOME TIME NOW. BASICALLY NO COUNTRY CAN GO IT ALONE. THE U.S. CANNOT AND AUSTRALIA CANNOT. THE PROBLEM IS GETTING THESE COUNTRIES TO COORDINATE, ESPECIALLY IN AN ERA WHERE COUNTRIES ARE MORE FOCUSED DOMESTICALLY. WE ARE EVEN SEEING THAT RELATIONSHIP BETWEEN THE U.S. AND INDIA UNDER STRAIN WITH TARIFFS AND INDIA AND PRIME MINISTER MODI TALKING ABOUT HOW INDIA SHOULD MAKE MORE THINGS DOMESTICALLY. WE WOULD LIKE TO SEE LESS TRENDS TOWARDS COUNTRIES GOING IT ALONE . FOR SEVERAL DECADES, CHINA HAS INVESTED IN STATE-OWNED ENTERPRISES IN MINING. THERE'S EASING OF PERMITTING, ETC.. FOR ANY COUNTRY TO KIND OF COMPETE WITH THOSE DECADES OF INVESTMENT AND THE HEADSTART CHINA HAS, COUNTRIES WILL NEED TO COME TOGETHER FOR THE INVESTMENT, THE MINING, THE PROCESSING. SOMETIMES YOU HAVE TO WORK BACKWARDS TO UNDERSTAND WHAT THESE WILL BE USED FOR AND THEN DECIDING WHERE TO INVEST. HOW WELL-POSITIONED IS AUSTRALIA AND PLAYING THE MEDIATOR ROLE? WE HAVE SEEN BEIJING TRYING TO INCREASE MOVES IN THE PACIFIC ISLAND. WHEN IT COMES TO BROADER GEOPOLITICAL RISKS, HOW WELL-POSITIONED IS AUSTRALIA IN DEALING WITH ALL THESE OTHER COUNTRIES AS WELL? GREAT QUESTION. AUSTRALIA HAS BEEN BUSY WORKING WITH THE PACIFIC ISLANDS. TO KIND OF WORK OUT SOME OF THESE SECURITY DEALS. BECAUSE AUSTRALIA KNOWS IT IS A COMPETITION AND PACIFIC ISLAND LEADERS ARE VERY SAVVY. THEY KNOW THERE IS GEOPOLITICAL COMPETITION AND THEY ARE TRYING TO NEGOTIATE FOR AS MUCH AS THEY CAN. AUSTRALIA HAS BEEN A LONG-TERM PARTNER AND IN TERMS OF DEVELOPMENT AID AND WORKING WITH THEIR NATIONAL POLICE FORCES WE EVEN SAW A NATIONAL RUGBY TEAM THAT WILL BE COMING THROUGH TO AUSTRALIA IN A SOFT POWER INITIATIVE RECENTLY THEY HAVE BEEN TRYING TO NEGOTIATE A DEFENSE PACT WITH PAPUA NEW GUINEA. I WOULD NOT SAY THAT IS A BROADER COMMENTARY THAT CHINA IS WINNING THE STRATEGIC COMPETITION. I WOULD SAY THAT DOMESTIC FACTORS IN PAPA NEW GUINEA MADE THE TIMING VERY DIFFICULT BUT THE BOTTOM LINE IS THAT THE PACIFIC ISLANDS ARE IN A GEOPOLITICAL HOTBED. THEY WOULD BE A PLACE WHERE A COUNTRY LIKE CHINA MIGHT WANT TO STAGE MILITARY ACTIVITIES IN THE FUTURE AND ALSO HIGHLY ATTUNED TO THE NEEDS OF ITS NATIONS IN TERMS OF REDUCING THE IMPACT OF CLIMATE CHANGE. SO AUSTRALIA CAN WORK MORE CLOSELY AND STRATEGICALLY BY HELPING IN TERMS OF DIFFERENT CLIMATE CHANGE INITIATIVES. BUT THERE SHOULD BE ENGAGEMENT FROM THE U.S., JAPAN, SOUTH KOREA TO HELP THESE NATIONS DEVELOP AND BRING THAT MORE WITHIN OUR STRATEGIC ORBIT SO IT REMAINS A STABLE AND SAFE REGION. GREAT TO GET YOUR INSIGHTS. WE WILL HAVE MORE AHEAD ON AUSTRALIA. PLUS YOU CAN TUNE INTO THE BLOOMBERG AUSTRALIA PODCAST, WHICH DELVES INTO THE BIGGEST STORIES OF SHAPING THE COUNTRY'S IN GLOBAL BUSINESS. FIND IT ON APPLE, SPOTIFY OR BLOOMBERG.COM. MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. IS BARRELING TOWARDS HONG KONG AFTER LASHING THE PHILIPPINES WITH WINDS OF 230 KILOMETERS PER HOUR APPEARED SCHOOLS ARE CLOSED UNTIL AT LEAST THURSDAY WITH CATHAY PACIFIC CANCELING MORE THAN 530 FLIGHTS. LET'S BRING IN OUR ASIA TRANSPORT CORRESPONDENT. HOW SEVERE ARE THE DISRUPTIONS? I KNOW THE HONG KONG AIRPORT HANDLES ALMOST 200,000 PASSENGERS A DAY. THERE'S A HUGE AMOUNT OF DISRUPTION THAT WILL LAST OVER 36 HOURS. PASSENGER AIRLINES WILL NOT BE OPERATING FLIGHTS FOR THIS TIME PERIOD SO YOU CAN SEE THE AMOUNT OF DESTRUCTION, THE KNOCK ON EFFECT IT'S INTERESTING THAT WHILE WE HAVE THIS SUSPENSION OF FLIGHTS THERE'S A WHOLE LOAD OF FLIGHTS THAT ARE CANCELED BEFORE THAT, SO THERE WILL BE A LOT OF DISPLACEMENT BEFORE THE TYPHOON. BUT THIS IS A DANGEROUS TYPHOON THAT IS BARRELING DOWN ON HONG KONG AND CHINA. WE HAVE SEEN AUTHORITIES IN MAINLAND CHINA URGING PEOPLE TO BE SAFE. THEY HAVE EVACUATED OVER 400,000 PEOPLE. SOUTHERN CHINA ALSO SUSPENDING OPERATIONS. SO THERE'S A LOT OF CONCERN FOR THE STORM THAT IS YET TO WEAKEN AND CONTINUES TO BARREL TOWARDS THE COAST OF SOUTHERN CHINA WITH A CATEGORY FOUR STRENGTH HURRICANE. WE ALSO SEE HOW THEY ARE TRYING TO POTENTIALLY LEARN FROM PREVIOUS INSTANCES WHERE THERE WAS DAMAGE. YEAH. THE VARIOUS AUTHORITIES ARE TRYING TO ASSESS -- I THINK HONG KONG PROBABLY IS MORE HECTIC. THEY FACE A BIG TEST FOR TRYING TO ENSURE TRADING REMAINS. WE HAVE HEARD FROM ONE OF THE MAJOR COMPANIES LOOKING TO RAISE MONEY THIS WEEK OR IN THE COMING WEEKS THAT THEY WILL NOT BE ABLE TO DO SO BECAUSE OF A TYPHOON SO THERE WILL BE A LOT OF DISRUPTION SO I THINK FOR AUTHORITIES MORE BROADLY, THEY WILL BE WATCHING CLOSELY AS THIS TYPHOON IMPACT STARTS TO HIT HONG KONG AND WILL LAST INTO WEDNESDAY AND THURSDAY. THANKS SO MUCH. STAY SAFE. DANNY LEE FOR US. AND OF COURSE WE KNOW HOW THE SUPER TYPHOON IS EQUIVALENT POTENTIALLY TO A CATEGORY FOUR STORM SO CERTAINLY TO DANNY'S POINT REALLY SEVERE DAMAGE ANTICIPATED AND THAT IS WHAT PEOPLE ARE BATTENING DOWN THE HATCHES IN ANTICIPATION FOR. > > AND WE COULD SEE SOME OF THOSE PUBLIC DEBUTS, LIKE ONE COMPANY FOR EXAMPLE, THAT COULD BE DELAYED. WE WILL CONTINUE TO WATCH THE LATEST DEVELOPMENTS AROUND THE TYPHOON IN HONG KONG AS WE ARE SEEING VERY MILD MOVES ON U.S. FUTURES AND MAINLAND CHINA FUTURES FINISHING TO THE UPSIDE. THAT IS IT FROM THE ASIA TRADE. THE CHINA SHOW IS NEXT. THIS IS BLOOMBERG. ♪

No schedule data available.

BTV Channel FinderWatch BTV in your area

The Asia Trade 9/23/2025

"Bloomberg: The Asia Trade" brings you everything you need to know to get ahead as the trading day begins in Asia. Bloomberg TV is live from Tokyo with Shery Ahn and Avril Hong, getting insight and analysis from newsmakers and industry leaders on the biggest stories shaping global markets. (Source: Bloomberg)

More From The Asia Trade
All episodes and clips

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
More episodes and clips