Live on Bloomberg TV

00:00> > THIS IS "THE ASIA TRADE." > > YOUR TOP STORIES THIS HOUR. THE ASIAN STOCKS SET FOR A CAUTIOUS OPEN AFTER FURTHER LOSSES IN BIG U.S. TECH. TRADERS AWAITED THE JACKSON HOLE SPEECH AND INFLATION REMAINS A MAJOR ISSUE FOR POLICYHOLDERS. LISA COOK SO SHE WILL NOT BE BULLIED INTO STEPPING DOWN AS PRESIDENT TRUMP DEMANDS THE RESIGNATION OF ALLEGATIONS OF MORTGAGE FRAUD. WE SPEAK EXCLUSIVELY TO THE AIA CFO GARTH JONES. SHERY: WE ARE SEEING LITTLE MOVEMENT ON THE NIKKEI FUTURES AFTER TWO SESSIONS OF LOSSES FOR THE JAPANESE STOCK MARKET. THIS IS COMING AT A TIME WHERE WE CONTINUE TO WATCH THE TECH SECTOR AND WE CONTINUE TO SEE THAT SELLOFF. IT HAS BEEN RANGE BOUND WHEN IT COMES TO THE BASIS WHILE THE JAPANESE YEN HOLDS THAT THAT ONE POINT -- 140 SEVEN LEVEL AGAINST THE U.S. G10 CURRENCIES HAVE FALLEN TO THE LOWEST LEVELS IN ABOUT A YEAR. LITTLE MOVEMENT WHEN IT COMES TO ASSET PRICES AHEAD OF JACKSON HOLE. TAKE A LOOK AT U.S. FUTURES. WE HAVE SEEN THAT PRESSURE IN THE OVERNIGHT SESSION AND A LITTLE BIT OF A LET OUT TOWARDS THE END OF THE SESSION BUT IT HAS BEEN ABOUT WHAT WE CAN EXPECT FROM JACKSON HOLE AND CHAIR POWELL SPEECH. THE DOLLAR HAS FALLEN, BUT IT REWARDED EARLIER LOSSES AFTER THE FED MINUTES HIGHLIGHTED INFLATION RISKS AND AHEAD OF THAT, WE HAD SEEN THAT DOWNSIDE PRESSURE. PRESIDENT TRUMP'S CONTINUED ATTACKS ON THE FED, CRUDE HOLDS AT $62 A BARREL. AVRIL: IT IS GOING TO BE ALL ABOUT THE FED. IT IS AS HE TALKED ABOUT, LAST MONTH'S MEETING SHOWED MOST FED OFFICIALS HIGHLIGHTED INFLATION RISK AS OUTWEIGHING CONCERNS ABOUT THE LABOR MARKET. THIS COMES AS TARIFFS FUELED THE GROWING DIVIDE. THAT SPRING IN MIKE MCKEE, WHO JOINS US FROM JACKSON HOLE IN WYOMING. REALLY GOOD TO HAVE YOU. WE HAVE THESE MINUTES FROM THE FED, BUT WE ALSO CAME AHEAD FOR THE JULY JOBS REPORT. HOW MUCH WEIGHT SHOULD WE BE PUTTING ON THAT? MIKE: WELL, WE GET A LITTLE MORE WEIGHT ON THEM THIS TIME BECAUSE ALL BUT TWO MEMBERS WHO DID DISSENT WERE IN FAVOR OF HOLDING RATES AND DID NOT THINK THE LABOR MARKET WAS AS MUCH OF A PROBLEM AS INFLATION. THE MAJORITY ARE ALREADY IN THE CATEGORY OF PEOPLE WHO ARE WORRIED ABOUT PRICES GOING UP BECAUSE OF TARIFFS. AS YOU MENTIONED, THE MEETING TOOK PLACE BEFORE THE LATEST CPI REPORT AND SHOWED THAT THERE WERE TARIFF SPILLOVERS INTO INFLATION. WE HAVE ONE MORE CPI REPORT BEFORE THE NEXT MEETING, AND IF THAT SHOWS WE HAVE EVEN MORE SPILLOVER AND MORE RISING PRICES BECAUSE OF TARIFFS, IT SEEMS THAT THE FED IS SET UP TO AT LEAST DECIDE TO HOLD RATES INSTEAD OF CUTTING THEM AS WALL STREET EXPECTS. SHERY: WE SAW MARKET MOVES TODAY IN RELATION TO THE PRESIDENT'S COMMENTS WHEN IT COMES TO CONTINUED ATTACKS ON THE FED, ASKING LISA COOK TO RESIGN DUE TO ALLEGATIONS. WHAT DO WE KNOW AT THIS POINT? MIKE: AT THIS POINT, THERE IS NO INVESTIGATION AND NO EVIDENCE NECESSARILY OF A CRIME. THERE IS AN ALLEGATION BY A TRUMP ADMINISTRATION OFFICIALS THAT GOVERNOR COOK COMMITTED MORTGAGE FRAUD. WHETHER THAT WILL BE FOLLOWED UP WE DON'T KNOW, BUT GOVERNOR COOK TODAY SAID SHE WILL NOT BE BULLIED INTO RESIGNING HER SEAT. IF YOU WERE GONE, IT WOULDN'T MAKE A DIFFERENCE REALLY AND WHETHER THE FED IS GOING TO CUT RATES ARE NOT IN SEPTEMBER, BUT IT WOULD GIVE THE PRESIDENT AN OPPORTUNITY TO NAME ANOTHER MEMBER OF THE BOARD OF GOVERNORS AND GIVE HIM MORE CONTROL OVER WHAT THE GOVERNORS DO GOING FORWARD. SO THAT MAY BE THE REASON HE JUMPED ON THIS AND SAID SHE NEEDS TO RESIGN. IT IS GOING TO HANG OVER THE CONFERENCE HERE BUT I WOULD NOT EXPECT A RESOLUTION ON ANY OF THIS IN THE NEAR FUTURE. AVRIL: ALSO HANGING ON THE CONFERENCE IN THE SENSE OF QUESTIONS AROUND INDEPENDENCE, WE HAVE SEEN OTHER CENTRAL BANKERS KIND OF RALLYING BEHIND JEROME POWELL AND NOW THEY GET TO DO IT ON U.S. SOIL. WHAT ARE YOU EXPECTING IN SETTING THE TONE AT JACKSON HOLE? MIKE: BLOOMBERG REPORTERS HAVE TALKED TO CENTRAL BANKERS IN EUROPE WHO SUGGESTED THEY WILL REPEAT THE COMMENTS SHE MADE AT THE ECB'S VERSION OF JACKSON HOLE IN JUNE WHERE THEY DEFENDED CENTRAL BANK INDEPENDENCE, NOTING THAT CENTRAL BANKS THAT HAVE THE ABILITY TO DO THEIR OWN MONETARY POLICY WITHOUT POLITICAL CONCERN TEND TO HAVE STRONGER AND BETTER ECONOMIES. AND BUT THEY WILL MAKE IT CLEAR THAT THEY THINK THE CENTRAL BANK INDEPENDENCE IS AN IMPORTANT THING FOR THE FED, AS WELL AS OTHER CENTRAL BANKS AROUND THE WORLD. SHERY: HOW IN-LINE ARE CENTRAL BANKS AROUND THE WORLD WHEN IT COMES TO MONETARY POLICY? THE BANK OF JAPAN IS GOING THE OTHER DIRECTION BUT WHEN IT COMES TO MONETARY EASING, WHAT MESSAGE CAN WE EXPECT THIS TIME? SHERY: -- MIKE: THAT WILL BE INTERESTING BECAUSE ALL OF THOSE ECONOMIES HAVE LITTLE BITS OF DIFFERENT KINDS OF ECONOMIC SITUATIONS GOING ON THAT ARE LEADING THEM TO DIFFERENT POLICY MOVES. JAPAN, AS YOU MENTIONED ARE LOOKING TO RAISE RATES AND NEW ZEALAND JUST CUT RATES. GREAT BRITAIN KEPT RATES STEADY, BUT SUGGESTED THEY WOULD BE CUTTING RATES IN THE FUTURE. A LOT OF THIS HAS TO DO WITH THE U.S. TARIFFS FOR THE U.S. THAT MAY BE INFLATIONARY. FOR OTHER COUNTRIES IT IS PROBABLY DEFLATIONARY, AND THEY FEEL THEY CAN CUT INTEREST RATES, SO IT WILL BE A WHILE BEFORE THEY ARE BACK IN SYNC. AVRIL: SOME REALLY IMPORTANT CONVERSATIONS ARE GOING TO BE HAPPENING AGAINST THIS BEAUTIFUL BACKDROP. BLOOMBERG'S MIKE MCKEE, FOR MORE ON HOW FOREIGN MARKETS ARE REACTING TO CENTRAL BANK DEVELOPMENTS, MARK CRANFIELD JOINS ME IN THE SINGAPORE STUDIO. FIRST OFF, WHAT DO WE SEE WITH THE EXPRESSION OF CONCERNS OF FED INDEPENDENCE? MARK: THE TREASURY YIELD CURVE IS PRETTY STEEP AND THAT TENDS TO BE GETTING STEEPER EVERY TIME SOMEBODY SPEAKS FROM THE TRUMP ADMINISTRATION TO AFFECT THE MARKET. YOU CAN SEE, THIS WEEK, THE "BLOOMBERG MARKETS RATINGS COMPANY -- S AND P RATINGS COMPANY REAFFIRMED AND THE TREASURY MARKET DID NOT RESPOND TO IT. THEY HAD A BIT OF A RALLY IN TREASURY AND'S GIVEN THE CONFIRMATION BUT THAT HASN'T BEEN THE CASE. THE YIELD CURVE STEEPEN SLIGHTLY. THERE IS CLEARLY SKEPTICISM FROM INVESTORS THAT THESE NUMBERS ARE NOT ADDING UP AND THE FISCAL SITUATION IS NOT GOING TO IMPROVE AS QUICKLY AS SOME PEOPLE LIKE SCOTT BESSENT SEEM TO THINK IT IS. THAT IS HOLDING TRADERS BACK ON THE LONG END OF THE CURVE. THE SHORT END IS MORE REFLECTIVE ON WHAT PEOPLE THINK THE NEXT INTEREST RATES MOVE WILL BE FURTHER FED. THIS WEEK AND THEY ARE HOPING TO DETERMINE HOW THEY FEEL NEXT WEEK ABOUT WHETHER THE NEXT FED CUT IS COMING SOON OR WILL BE DELAYED FURTHER. JEROME POWELL HAS A BIG TASK THIS WEEKEND. EVERY NARRATIVE HE TRIES TO SPIN OVER THE WEEKEND, THERE WILL BE EXTERNAL VOICES KNOCKING HIM DOWN, SAYING HE IS WRONG, THAT THE FED CUTS NEED TO COME QUICKLY. A VERY DIFFICULT TIME FOR HIM AND THE OTHER FED SPEAKERS, AS WELL. THERE ARE TOO MANY VOICES OUTSIDE TELLING HIM WHAT TO DO. AVRIL: DO WE THINK HE'S BEEN DOING A GOOD JOB HOLDING HIS GROUND? I WANTED TO ASK ABOUT ANOTHER CENTRAL BANKER, WHAT ARE YOU EXPECTING FROM THEM? MARK: A COUPLE OF THINGS. ALL THE FOREIGN CENTRAL BANKERS WILL GET BEHIND THAT INDEPENDENCE OF CENTRAL BANKS IS AN IMPORTANT FACTOR FOR TRADERS, MARKETS IN GENERAL. YOU WOULD EXPECT THAT, BUT AWAY TO LOOK AT LAST YEAR, HE HAS GIVEN THAT SHE HAS BEEN GIVEN COVER FROM COMMENTS FROM SCOTT BESSENT. WE HAVE AN IMPORTANT BANK OF JAPAN MEETING COMING UP NEXT MONTH AND TRADERS ARE ALREADY BEGINNING TO SENSE THAT THE GOVERNMENT IS LOOKING FOR A WINDOW TO DO THE NEXT RATE IN JAPAN. THE DOMESTIC SITUATION HAS BEEN AGAINST THEM, PARTICULARLY POLITICALLY. IT IS VERY COMPLEX. BUT, A MAJOR FIGURE HAS GIVEN HIM THE GO-AHEAD PUSH ESSAY THAT RATE HIKES ARE ON THE TABLE. YOU WOULD EXPECT HIM TO SOUND HAWKISH, AND IT IS AN UNUSUAL FOR CENTRAL BANKERS ON THE GO OVERSEAS TO BE A LITTLE BIT MORE OPEN WITH THEIR DISCRETION AND THEY ARE AT HOME. SO ON FOREIGN SOIL, HE HAS THE BACKING OF THE U.S. TREASURY SECRETARY WITH AN OPPORTUNITY FOR THEM TO REALLY PUSH THE MESSAGE THAT A RATE HIKE IS COMING AND IT ISN'T THAT FAR AWAY. CURRENTLY, IT IS A TOSSUP AND SEPTEMBER RATES ARE STILL LOW FOR JAPAN, BUT IT IS A TOSSUP FOR OCTOBER AND HE MAY AS WELL NUDGE IT TOWARD A FULLY PRICED RATE HIKE. SHERY: WE CONTINUE TO SEE THE WEAKNESS IN THE JAPANESE YEN, UNNECESSARILY STRENGTHENING ON THE EXPECTATIONS OF THAT HIKE AND EVEN JAPANESE STOCKMARKETS RALLYING. VALUATIONS AROUND THE WORLD WHEN IT COMES TO EQUITIES HAVE BEEN STRETCHED. THERE HAVE BEEN CONCERNS ABOUT WHERE WE GO FROM HERE. FIRST OF ALL, LISTEN TO HOWARD MARKS FROM OAKTREE ABOUT WHAT HE IS TALKING ABOUT WHEN IT COMES TO THE LEVELS OF THE STOCK RALLIES. > > I'M NOT RAISING AN ALARM BELL, BUT I THINK IT IS TIME FOR CAUTION. NO REASON TO THINK THERE WILL BE A CORRECTION SOON, BUT THE POINT IS THAT THINGS ARE EXPENSIVE. AND THEY MAY GO ON TO BECOME MORE EXPENSIVE, BUT THE FACT THAT THEY ARE EXPENSIVE, IT SHOULD NOT BE LOST. SHERY: IS THIS STILL ALL ABOUT CENTRAL POLICY WHEN IT COMES TO INVESTORS AND THE RALLY CONTINUE TO SEE? MARK: NOT ONLY BECAUSE NEXT WEEK WE HAVE NVIDIA EARNINGS AND THERE'S NOTHING MORE IMPORTANT IN THE EQUITY THAN WHAT HAPPENS WITH NVIDIA AND THEIR OUTLOOK ESPECIALLY BECAUSE OF THE AI STORY, WHICH IS A HUGE DRIVER OF SENTIMENT AND EQUITY MARKETS ESPECIALLY. SO PEOPLE WILL BE VERY CONCERNED TO HEAR WHAT DOES NVIDIA THINK ABOUT THE FUTURE, OBVIOUSLY THEY WOULD LIKE TO KNOW ABOUT THE EARNINGS THEY HAVE FOR NOW, AND HOW THEY SEE DEMAND FOR AI PRODUCTS IN THE MONTHS AHEAD. IF YOU LOOK AT THE PEOPLE THEY DEAL WITH, LIKE TSMC AND TAIWAN, THE INDICATIONS ARE ALREADY POSITIVE. IT SOUNDS AS IF THERE IS NO LET UP, AND WHEN YOU HEAR ABOUT THE MONEY SPENT ON DATA, PEOPLE REALLY NEED TO PRODUCE THE DATA NEEDED FOR AI. THERE IS STILL HIGH DEMAND FOR PEOPLE TALKING ABOUT TRILLIONS OF DOLLARS OF INVESTMENT FOR PEOPLE GOING INTO THAT SPACE OF EXPECTATIONS ARE HIGH. NVIDIA HAS BEATEN THE BAR MANY TIMES WITH ITS EARNINGS, BUT THERE HAS NEVER BEEN A MORE IMPRESSIVE TIME THAN IT IS RIGHT NOW. IT IS AS IF THE EQUITY MARKETS ARE IN A HOLDING TIME AND THEY NEED TO KNOW WHAT NVIDIA HAS TO SAY AND THEN PEOPLE CAN RELAX IF THOSE NUMBERS ARE GOOD. IF NOT, IF THEY DISAPPOINT, THE DOWNSIDE POTENTIAL IS PRETTY BIG BECAUSE PRICES HAVE PRETTY MUCH DOUBLED SINCE THE APRIL DIP, SO THERE IS SO MUCH RESTING ON THE NUMBERS FROM NVIDIA, THEY HAVE TO SAY ABOUT THE FUTURE. SHERY: OPTIONS TRADERS ARE FARING THAT DEEPER TECH PLUNGE COULD BE CONCERNING. THANK YOU. COMING UP ON THE ASIAN TRADE, WE SPEAK EXCLUSIVELY TO AIA GROUP CEO GARTH JONES ABOUT THEIR NEW BUSINESS OUTLOOK. PLUS, A CONVERSATION ON KOREA'S AMBITIONS WITH AMAZON STARTUP UPSTAGE, AND THEN STUART TANKAN JOINS US TO TALK EARNINGS AND GOLD PRICES. MUCH MORE AHEAD. ♪ ♪ THIS IS BLOOMBERG. ♪ AVRIL: AIA GROUP REPORTED A 16% INCREASE IN BUSINESS AND THE FIRST HALF OF 2025, AS HONG KONG INSURERS SEE STRONG DEMAND FOR LINES HUNTING FOR BETTER RETURNS AMID LOWER INTEREST RATES AND CHINA. JOINING US EXCLUSIVELY IS THE AIA GROUP CEO GARTH JONES. REALLY GOOD TO SEE YOU. LET'S START WITH WHAT WAS A GREAT FIRST HALF, WHAT DROVE THIS AND WHAT ARE YOU EXPECTING GOING FORWARD IN TERMS OF THE RATE OF GROWTH. GARTH: GOOD MORNING. GREAT TO SEE YOU. I'M VERY PLEASED WITH THE FIRST-HALF PERFORMANCE OF THE BUSINESS, SO AN EXCELLENT SET OF OPERATING RESULTS. IN BOTH GROWTH OF THE BUSINESS, THE EARNINGS GROWTH, AND IN THE GROWTH OF THE VALUE OF WHAT WE HAVE. AND THE VOLUME OF NEW BUSINESS, ARE KEY GROWTH MEASURE, GREW BY 14% AND OUR UNDERLYING SURPLUS, WHICH IS ARC HE OPERATING CASH MEASURE. THAT GREW BY 10%. IMPORTANTLY, THE GROWTH WAS FOR OUR BEST, BROAD-BASED, WE SAW GROWTH IN 13 OF OUR MARKETS ACROSS THE BUSINESS WITH HONG KONG, OUR LARGEST MARKET, DURING 44% AND WE SAW GROWTH THAT WAS UP 20%, AND PARTICULARLY STRONG GROWTH IN SINGAPORE AND THAILAND . WE SAW GROWTH IN INDIA, UP 38% AND CHINA GREW BY 8% ON THE UNDERLYING BASIS. ON THE FIRST HALF, WE RETURNED $3.7 BILLION TO SHAREHOLDERS. I THINK OUR CONFIDENCE FOR THE FUTURE IS REFLECTED IN THE 10% NEEDED, SO WE ARE PLEASED WITH THE PERFORMANCE, A STRONG PERFORMANCE FOR THIS HALF OF THE YEAR. AVRIL: YOU TALK ABOUT THE HONG KONG PERFORMANCE, SOME OF IT DRIVEN BY MAINLAND CUSTOMERS. HOW STRONG DO YOU SEE THEM DEMAND GOING FORWARD? COULD YOU PUT SOME NUMBERS TO IT? GARTH: WE SAW STRONG GROWTH IN THE MAINLAND VISITOR SEGMENT. SO WE HAD HALF OF OUR BUSINESS BUT WE ALSO SAW STRONG GROWTH IN THE DOMESTIC SIDE, 18%, THE OTHER HALF. IT HAS BEEN GROWING STRONGLY OVER THE PAST FEW YEARS, AND WE SAW GROWTH FROM BUILDING LAST YEAR AND THAT CONTINUED INTO THE FIRST HALF. AS WE LOOK FORWARD, WE SAW A RECRUITMENT OF NEW AGENTS THAT WAS STRONG AT 50% GROWTH IN THE RECRUITMENT, AND THAT HELPED BUILD MOMENTUM EVEN FURTHER. SO WE ARE CONFIDENT THAT WE SEE STRONG DEMAND, BUT WE ALSO SEE STRONG SUPPLY IN TERMS OF PRODUCTIVITY AND GROWTH. SHERY: WHEN IT COMES TO MAINLAND CHINA, HOW ARE YOU DEALING WITH A LOWER RATE ENVIRONMENT AND THE EXPANSION PLANS? HAVE YOU SEEN ANY MORE APPROVALS WHEN IT COMES TO REGULATION IN DIFFERENT PROVINCES WHERE YOU OPERATE? GARTH: IN TERMS OF INTEREST RATES, WE TAKE A POSITION WHERE WE MATCH ASSETS AND LIABILITIES IN THE LONG TERM, SO THAT OUTREACH REMAINING DURATION OF OUR PORTFOLIO BONDS, FOR EXAMPLE, IS MORE THAN 30 YEARS. THEY HAVE BEEN INVESTED AT HIGH RATES, SO THAT IS GIVING US A STRONG FOUNDATION, AND FOR THE NEW BUSINESS WE LAYER ON, SUCCESSFUL LAYERS OF BUSINESS TO PROVIDE FUTURE PROFITS, THAT WE REPRICE ON A REGULAR BASIS, WE REPRICE THEM LAST YEAR, WE WILL BE REPRICE AND AGAIN FROM THE FIRST OF SEPTEMBER THIS YEAR TO REFLECT LOW INTEREST RATES. IMPORTANTLY, A LOT OF THE SOURCES OF THE PROFIT WE HAVE AND CHINA COME FROM OUR PRODUCTION BUSINESS. WE ARE A BIG PRODUCTION BUSINESS SELLER, AND THOSE PROFITS ARE IMMUNE TO INTEREST RATE MOVEMENTS. IN TERMS OF THE NEW PREMISES, WE ARE VERY EXCITED ABOUT FUTURE GROWTH FOR THE WHOLE BUSINESS. IF YOU LOOK BACK, WE HAVE THE FIVE ORIGINAL BUSINESSES THAT ARE PERFORMING WELL, ARE DIFFERENTIATED FROM YOUR AGENCY IN CHINA WITH HIGHER PRODUCTIVITY THAN THE REST OF THE INDUSTRY, AND THAT DRIVES FUTURE GROWTH. WE HAVE SEEN 18% INCREASE IN THE NUMBER OF RECRUITS, AND IN THE NEW PROVINCES, WE SAW 36% GROWTH IN THE PAST YEAR, AND AS WE LOOK FORWARD, WE FEEL THOSE PROVINCES HAVE SUBSTANTIAL ROOM FOR GROWTH AND WE ARE LOOKING TO GROW THEM BY 40% PER YEAR ON AVERAGE OVER THE NEXT 45 YEARS, SO SUBSTANTIAL GROWTH. SHERY: YOU MENTIONED OTHER KEY MARKETS LIKE THAILAND. WE CONTINUE TO WATCH CENTRAL BANKERS GET TOGETHER AT JACKSON HOLE THIS WEEK WITH THE MONETARY EASING ENVIRONMENT WE ARE FACING NOW GIVEN THE GROWTH STALLING AROUND THE WORLD ON TARIFF THREATS. HOW ARE YOU ASSESSING THE ENVIRONMENT IN ALL OF THE OTHER NATIONS THAT COULD POTENTIALLY SEE LOWER RATES, AS WELL? GARTH: I THINK THE KEY THING ABOUT BUSINESS IS THAT WE HAVE A STRONG AGENCY FORCE, AND THAT STRONG AGENCY FORCE IS ABLE TO MEET THE NEEDS OF OUR CUSTOMERS WHICH ARE PRIMARILY AROUND PROTECTION AND LONG-TERM SAVINGS. PEOPLE HAVE TO SAVE FOR THEIR FUTURE AND ASIA, AND WE HAVE SEEN THAT COME THROUGH THE INTEREST-RATE CYCLES WITH BUSINESS GREW BY 35% OVER THE FIRST HALF AND STRONG DEMAND FOR PROTECTION PRODUCTS AND HEALTH AND CRITICAL ILLNESS. SIMILARLY, WE SAW GROWTH OF 16% IN SINGAPORE, DRIVEN BY THE FUNDS WE HAVE THERE AND INVESTMENT FUNDS, WHERE POLICYHOLDERS LEAVE DECISIONS TO US. THEY HAVE GROWN STRONGLY. SO WE SEE THOSE NEEDS CONTINUING THROUGH CYCLES AND OUR AGENCY IS ABLE TO MEET THOSE NEEDS AND DEMANDS FOR PRODUCT. AVRIL: WHAT PRODUCT LINES IN THAILAND DO YOU THINK CAN BE A BIT MORE RESILIENT THOUGH? GARTH: WE HAVE TWO REAL FOCUS IS FOR THE BUSINESS. THE FIRST IS THE PROTECTION BUSINESS I TALKED ABOUT, THE HEALTH AND CRITICAL ILLNESS TO MEET THE PROTECTION NEEDS OF CUSTOMERS BUT WE ALSO SAW THE UNIT THAT IS TIED TO THE PERFORMANCE OF MARKETS OVER A LONGER TIME THAT PROVIDES POLICYHOLDERS WITH A PROSPECT A VERY GOOD FUTURE RETURNS. IT ALSO CONTAINS A LOW LIABILITY COST FOR THE BUSINESS. THOSE TWO TYPES OF BUSINESS ARE POPULAR. WE HAVE SEEN STRONG GROWTH, AS MENTIONED. THEY ARE POPULAR WITH OUR CUSTOMERS AND RESILIENT TO INTEREST RATE MOVEMENTS. SHERY: TELL US ABOUT YOUR CUSTOMERS. WHAT SORT OF DEMOGRAPHIC ARE YOU TARGETING? IS IT DIFFERENT BY REGION? WE KNOW HIGH NET WORTH CLIENTS ARE A BIG FOCUS. GARTH: WE TEND TO FOCUS ON THE MIDDLE CLASS SEGMENT AND IN CHINA, WE HAVE A DIFFERENT REGION IN BUSINESS IF THAT IS MORE FOCUSED ON UPPER MIDDLE AND AFFLUENT SEGMENTS. WE ALSO HAVE A STRONG NETWORK BUSINESS PARTICULARLY IN THE GLOBAL CENTERS OF HONG KONG AND SINGAPORE WERE RECEIVED BUSINESS BOOK. WE HAVE SEEN GOOD GROWTH IN THAT BUSINESS, PARTICULARLY SINGAPORE , AND AS A RESULT, WE HAVE DEDICATED THE SALES FORCE TO THAT, WE HAVE DEDICATED SERVICE, PRODUCTS, AND SO ON. WE HAVE SEEN THE WEALTH BUSINESS CONTINUE TO GROW ACROSS ASIA AND WE ARE EXCITED ABOUT PROSPECTS FOR THAT SEGMENT. AVRIL: YOU TOUCHED ON SOME OF THE INTEREST RATES ENVIRONMENT, BACKDROP EARLIER, WHAT ABOUT THE EXCHANGE RATE AND WHAT WE ARE SEEING IN MARKETS VOLATILITY? DO YOU SEE THAT AS A RISK AND HOW MANAGEABLE IT IS? GARTH: WE HAVE A DIVERSIFIED BUSINESS, SO THAT CLEARLY HELPS US. WE SELL OUR PRODUCTS TO LOCAL CURRENCY AND WE INVEST IN LOCAL CURRENCY AND HONG KONG IS A U.S. DOLLAR-BASED BUSINESS AND THAT IS ABOUT 35% OF THE BUSINESS, BUT THE REST OF IT IS NON-US DOLLAR OCCURRENCES -- NON-US DOLLAR CURRENCIES. WE ARE A LONG-TERM, SUSTAINABLE BUSINESS AND WE FIND THAT THOSE CURRENCY MOVEMENTS ARE GOOD. YOU CAN SEE IN OUR NUMBERS WERE WE BENEFITED FROM A WEEK AGO BUT WE LOOK TO IT TO CONSTANT EXCHANGE RATES WE SAW IT GROW 12% AND OUR VOLUME GROWTH BUSINESS BY 14%. SHERY: ALWAYS GOOD TO HAVE YOU ON EARNINGS DAY. CONGRATULATIONS ON THEIR EARNINGS RESULTS. WE HAVE MORE WHEN IT COMES TO EARNINGS COVERAGE ON BLOOMBERG TELEVISION. WE WILL HEAR FROM EXECUTIVES FROM NORTHERN STAR AND CASINO BIOLOGICS. MORE AHEAD. THIS IS BLOOMBERG. ♪ SHERY: WE WILL BE WATCHING THE TECH SECTOR IN TODAY'S TRADING. WE CONTINUE TO SEE THE SELLOFF IN WALL STREET, THE 100 LOSING GROUND FOR A SECOND SESSION. THE MAGNIFICENT 7 LOSING GAINS FOR A FOURTH SESSION. WE SAW THAT $40 BILLION STOCK RALLY THAT IS HITTING THE WALL, NOT TO MENTION THAT REALLY TRADING IS ABOVE AND THIS PRICES. TSMC AND THE OVERNIGHT SESSION ALSO FALLING THROUGH THE 50 DAY MOVING AVERAGE, SO WE WILL BE WATCHING TAIWAN WHEN THE MARKET OPENS. U.S. FUTURES ARE UNCHANGED AT THE MOMENT, BUT THE NASDAQ 100 VOLATILITY RISING AGAINST THE S & P 500 ON THAT CHART ON THE RIGHT. WE CONTINUE TO SEE THESE GYRATIONS IN MEGA CAP TECH STOCKS. WE HAVE MORE AHEAD ON THE ASIAN TRADE. THIS IS BLOOMBERG. ♪ -- WE HAVE MORE AHEAD ON "THE ASIAN TRADE." THIS IS BLOOMBERG. ♪ SHERY: WE ARE WATCHING MICROSOFT LIMITING CHINESE COMPANY ACCESS TO EARLY WARNINGS IN FLAWS IN THE TECHNOLOGY, FOLLOWING THE INVESTIGATION AND WHETHER A LEAK LEAD TO A SERIES OF HACKS EXPLODING VULNERABILITIES IN THEIR SHAREPOINT SOFTWARE. LET'S GET MORE FROM ANNABELLE DROULERS AND HONG KONG. WHAT DO WE KNOW SO FAR? ANNABELLE: THIS IS A CHANGE THAT TOOK PLACE LAST MONTH AND THERE ARE A LOT OF DETAILS BUT TO BREAK IT DOWN, A MICROSOFT OPERATED A MICROSOFT ACTIVE PROTECTIONS PROGRAM RMA PP -- OR MAPP, GIVING COMPANY EARLY ACCESS TO ITS SYSTEMS AND THEY CAN PROVIDE UPDATED PROTECTIONS FOR THEIR CUSTOMERS FASTER. IT OPERATES ON THIS PROGRAM BUT WHAT IS HAPPENING NOW IS ACCESS TO IT WILL BE LIMITED IN PLACES WHERE MAPP PARTICIPANTS ARE REQUIRED TO PROVIDE OR REPORT VULNERABILITIES TO LOCAL GOVERNMENTS, AND THAT INCLUDES CHINA. AS YOU SAID, MICROSOFT HAS FACED A SERIES OF HACKS. MOST RECENTLY ON THE SHAREPOINT SOFTWARE. WE REPORTED THERE WAS A CONCERN HACKERS COULD HAVE BEEN AIDED BY MAPP PARTNERS LEAKING THE FILES, SO IT MAPP PARTICIPANTS AND CHINA WILL NOT BE RECEIVING ADVANCED WARNINGS AT WHAT THEY WILL GET INSTEAD ARE BRIEF DETAILS ON THE VULNERABILITIES, BUT NONE OF THE SOURCE CODE OR THE FIXES IN ANY GREAT DETAIL, AND THEY WILL GET IT LATER ON WHEN THE FIXES ARE RELEASED TO THE MARKET, AS WELL. AVRIL: ON THE EARNINGS FRONT, WE HAD FIVE DIFFERENT NUMBERS OVERNIGHT. WHAT WERE YOUR KEY TAKEAWAYS? ANNABELLE: THE NUMBERS WERE NOT THAT GREAT OVERALL. WE KIND OF SAW THAT REACTION OVERNIGHT. A SLIGHT SLIP, DOWN 1%, QUARTERLY REVENUE WAS DOWN THE MOST SINCE 2022 AND SALES DROPPED 4%, COMING IN AROUND $4.6 BILLION, EVEN THOUGH NET INCOME WAS UP MORE THAN 30%, SO THERE ARE A COUPLE OF THINGS TO TAKE AWAY FROM IT. THE BREAD-AND-BUTTER BUSINESS OF THE COMPANY, THAT CONTINUE TO SEE WEAKNESS. OF COURSE, THERE WAS A RISK THAT WAS KIND BY THE AI PROJECTS. THE COFOUNDER ROBYN LEE ON THE EARNINGS CALL SAID THEY ARE A WAYS OFF, MONETIZING THE AI EFFORTS AND THEY WILL CONTINUE TO PUT MONEY INTO THAT. IN THE MEANTIME, THE CLOUD BUSINESS PICKED UP. THE CONCERN IS THAT CLOUD IS HIGHLY COMPETITIVE IN CHINA AND IT IS A LOW MARGIN BUSINESS, AS WELL. IN ADDITION, IT IS ACCELERATING ITS ROBOTAXI BUSINESS WITH APOLLO'S ROBOTAXI SERVICE, SO SOME KEY AREAS TO WATCH. AS YOU SAID, OVERALL, NOT THAT MUCH TO REALLY TAKE AWAY FROM AS A POSITIVE READING. AVRIL: ROBYN LEE SEEMS TO BE TALKING ABOUT MONETIZING AIA AND GOOGLE UNVEILED NEW GADGETS AND THEY HAVE A BIG FOCUS ON AI. ANNABELLE: THAT'S RIGHT. WE HAVE SEVERAL NEW SMARTPHONES, A WATCH, AND ALL OF THAT IS SUPPOSED TO SHOW OFF ADVANCEMENTS GOOGLE IS MAKING INTO INTEGRATING AI, SO WE HAVE A LINEUP THAT CONSISTS WITH PIXEL 10, PIXEL 10 PRO, XL, AND THAT RANGES IN PRICE FROM 800 TO 1800 U.S. DOLLARS, AND THAT WILL COST UP TO $400 IN EARBUDS RETAILING FOR 30, AS WELL. ACROSS THE BOARD WE ARE SEEING THEM INTEGRATING THEIR GEMINI AI ASSISTANT, A PLATFORM THAT IS GROWING INCREASINGLY CONFIDENT THAT FOCUS OF HOW THAT GEMINI AI SYSTEM CAN CATCH UP TO OPENAI. IT IS INCREASINGLY TRYING TO POSITION GEMINI AI IS NOT JUST A REGULAR CHATBOT VOICE BUT TRYING TO PUSH OR TRYING TO DRAW OUT THOSE CAPABILITIES IT HAS, AS WELL. SO GOOGLE REALLY TRYING TO MAKE THE POINT THAT THEIR PRODUCTS HAVE A GREATER USE OF AI THEN PERHAPS WE SEE FROM APPLE, FOR INSTANCE. SHERY: ANNABELLE DROULERS WITH THE LATEST ON THE TECH SECTOR. AS WE CONTINUE TO WATCH FOR ARTIFICIAL INTELLIGENCE AND SOUTH KOREA, UPSTAGE CLOSED A 45 MILLION DOLLARS SERIES B FUNDING ROUND, BACKED BY AMAZON AMD AND KOREAN DEVELOPMENT BACK, BRINGING THE CAPITAL TO OVER 100 $50 MILLION. THE STARTUP PROVIDES ITS OWN LANGUAGE MODEL I AI TOOLS FOR CUSTOMERS TO STREAMLINE DOCUMENTATION AND WERE CLOSE. THE CEO AND COFOUNDER JOINS US EXCLUSIVELY FROM SOEOUL. WHAT ARE YOUR PLANS FOR THIS NEW CAPITAL INFUSION? SUNG: WE WILL GET 45 MILLION BY THE KOREAN DEVELOPMENT BANK. AI IS A REALLY BIG AGENDA IN KOREA. KDB INVEST IN ALL KINDS OF AI WITH AI TIPS AND MODELS, AND THEY PICK THE UPSTAGE AS ANOTHER SIDE OF AI INVESTMENTS. MORE IMPORTANTLY, THEY ARE ON THE GLOBAL HYPERSCALERS AND THEY ARE NOT ONLY JUST INVESTORS, BUT STRATEGIC PARTNERS, SO THEY WILL PROVIDE US SCALE FOR OUR PRODUCTS GLOBALLY. SO U.S. CAPITOL, BASICALLY WE WOULD LIKE TO EXPAND OUR PRODUCT MORE FROM KOREA, USA, JAPAN IN THAT AREA. SHERY: YOU MENTIONED HOW THE KOREA DEVELOPMENT BANK HAS BEEN LEADING THIS, A BIG GOVERNMENT EFFORT RIGHT NOW AND SOUTH KOREA. DO YOU EXPECT MORE TRACTION WHEN IT COMES TO SOUTH KOREAN TECHNOLOGY GIVEN THE U.S.-CHINA RIVALRY? SO FAR WE HAVE SEEN THE TWO COUNTRIES DOMINATING THE AI SPACE. DO YOU THINK THE RIVALRY WILL HELP COMPANIES LIKE YOURSELF? SUNG: DEFINITELY. I THINK THE KOREAN CENTER, IS ONE OF THE FEW COUNTRIES THAT HAS OUR OWN SERVICES AND SEARCH ENGINES, AND WE HAVE THE NUMBER ONE SEARCH ENGINE IN KOREA, AND THE NUMBER ONE MESSENGER IN KOREA. SIMILARLY, AI SERVICES FROM KOREA WERE DOMINANT IN SERVICES. THE KOREAN GOVERNMENT AND BANK HAVE INCLUDED AND PROVIDED THINGS THAT ARE NOT ACCESSIBLE TO OTHER AI COMPANIES BUT THEY HAVE PROVIDED IT TO HER KOREAN AI COMPANIES. BUT THIS WILL HELP THE AI PERFORMANCE AND THIS CAN COMPETE WITH THE THEATER GLOBALLY. SHERY: PART OF EFFORTS TO HELP SOUTH KOREA RETAIN ITS COMPETITIVE EDGE, BUT I WONDER, AS YOU SEE THE GROWTH OF THE COMPANY, WHAT ARE YOU WATCHING IN TERMS OF THE METRICS AND THE MILESTONES? SUNG: RIGHT, SO BASICALLY, THE DEVELOPING IS ONE THING, BUT THE MORE IMPORTANT THING IS HOW WILL IT BE IN THE REAL INDUSTRY OR ESPECIALLY FOR THE REAL WORK? SO OUR REASON FOR THIS AI IS TO CREATE THE FUTURE OF THE WORK, SO LLM IS VERY POPULAR, BUT IF YOU SEE, IT IS USED IN THE DAILY WORK BASIS. SO IT STILL HAS MOST OF THE JOBS DONE MANUALLY, AND WE WOULD LIKE TO BRING THIS GAP TO THE OFFICE WORKERS AND THEY ARE VERY STRONG AND VERY GOOD, BUT THEIR FOCUS IS MORE TYPICAL TO PHYSICS PROBLEMS. BUT THEY REALLY TRY TO USE THIS ONE IN THE ENTERPRISE ENVIRONMENT SO ON THE OTHER HAND , WE ARE ACTUALLY BUILDING A SOLAR LLM AND IT IS DOCUMENT HEAVY, AND THE PROCESS STREAM AND THE ENTERPRISE WORKFLOWS, SO MOST OF IT IS ON A DAILY BASIS. SO IT IS SO PEOPLE CAN RELY ON LLM AND THEY CAN PUT ALL THE OFFICE WORK FOR AI AUTOMATION. AVRIL: WHAT HAVE YOU BEEN SEEING IN TERMS OF CUSTOMER ACCEPTANCE AND UPTAKE FROM SOME OF THE ENTERPRISE CLIENTS? SUNG: RIGHT, SO, ESPECIALLY WORKING ON THE INSURANCE COMPANIES, THEY PERSONALLY DEAL WITH A LOT OF DOCUMENTS AND NUMBERS. THEY ARE NOT REALLY -- IF THERE ARE ANY MISTAKES AND NUMBERS, IT IS DIFFICULT TO USE, SO HOW CAN THEY CREATE THIS LLM MOVE AND MAKE IT GREAT IN TERMS OF USING THE NUMBERS? SO THEN WE CAN PROVIDE VERY, VERY HIGH QUALITY ACCURACY IN NUMBERS AND IN SUMMARIZING THE NUMBERS, THEN THEY ARE VERY HAPPY ABOUT THIS, AND THEY WILL LIKE THIS SOLUTION BETTER THAN THE GENERAL LLM. AVRIL: WHAT ABOUT COOPERATION WITH OTHER KOREAN STARTUPS? WE UNDERSTAND THAT YOU ARE WORKING WITH CHIP DESIGN COMPANIES, AS WELL, WHEN IT COMES TO SOME OF THE CHIPS THAT COULD BE USED BY UPSTAGE. TELL US MORE ABOUT THE COLLABORATION EFFORTS. SUNG: RIGHT. IN KOREA, WE HAVE FAMOUS NPO COMPANIES WITH A FOCUS ON THE INFERENCE I. SO INFERENCE IS GETTING HIGHER -- INTEREST IS GETTING -- FOCUS ON THE INTEREST SIDE. INTEREST IS GETTING HIGHER AND HIGHER. WHAT WE ARE WORKING WITH IS THAT WE WOULD LIKE TO BUILD OUR MODEL TO FIT TO THEIR NPO SO THEY CAN PROVIDE MUCH MORE EFFICIENT DATA, SO WE CAN SERVE LARGE-SCALE ENTERPRISE CUSTOMERS. SHERY: THE COFOUNDER OF UPSTAGE, THANK YOU FOR HAVING IS WITH YOU. HUMANOID ROBOTS WILL TAKE CENTER STAGE ON FRIDAY. THAT IS 8:30 A.M. HONG KONG TIME AND 8:30 P.M. NEW YORK TIME. AVRIL: AHEAD ON "THE ASIA TRADE ," A LOOK AT CHINA'S STOCK MARKET THAT SEEMINGLY DEFIES GRAVITY DESPITE A STRUGGLING ECONOMY. MORE IN A MOMENT. THIS IS BLOOMBERG. ♪ AVRIL: CHINA'S TECHNOLOGY REPORTS EARNINGS TODAY AND WILL FOCUS ON HOW THE COMPANY IS BUILDING ON EARLY SUCCESS WITH AI GENERATED VIDEOS ONKLING -- VIDEOS ON KLING. WHAT ARE YOU WATCHING OUT FOR IN TERMS OF EARNINGS AND THE VIDEO SERVICE AND WHAT IT MEANS FOR THE AI ASPIRATIONS? MINMIN: THE VIDEO SERVICE IS GOING TO BE CLOSELY WATCHED BECAUSE KLING EXCEEDED EXPECTATIONS AND THE ABILITY TO MONETIZE THE COMPANY. EARLIER, THEY PROVIDED GUIDANCE AND THEY ARE LOOKING AT ONE HUNDRED U.S. DOLLARS REVENUE -- 100 MILLION U.S. DOLLAR REVENUE. BUT LOOKING AT REVENUE GROWTH ON 11% INCOME INCREASING 11%, A LOT OF IT COMING FROM KLING WITH SUBSCRIPTION GROWTH. INVESTORS WERE LOOKING FOR SUSPENSION, BUT GOING TO ITS OTHER CORE BUSINESSES, LIKE E-COMMERCE AND LIVESTREAMING, THAT IS WHERE WE MIGHT SEE THE GOVERNANCE THAT REPORTS TO THE SEGMENT OF THE BUSINESS BUT THAT IS INTENSE OPPOSITION FROM THE LIKES OF ALIBABA, AND IT COULD BE FACING HEADWINDS GIVEN THE SLOWDOWN IN THE ECONOMY IN TERMS OF PEOPLE SPENDING AND APPETITE FOR SPENDING. SHERY: IT IS REALLY DEEP IN THE EARNINGS SEASON, SO WE COULD SEE SUSTAINED PROFIT GAINS, AS WELL? MINMIN: IT IS EXPECTED TO DO WELL BECAUSE OF A HIT GAME THAT THEY CAME UP WITH RECENTLY AND THAT IS WHERE WE EXPECT TO SEE THE GAPING REVENUE PICK UP, BUT STILL LONGER-TERM INVESTORS ARE A LITTLE BIT CAUTIOUS ABOUT GROWTH PROSPECT THERE, AND THAT IS FIGHTING AGAINST TENCENT AND THIS COMPANY WILL HAVE TO KEEP COMING UP WITH CONSISTENT PITCH GAMES TO KEEP UP THE MOMENTUM, AND WHEN IT COMES TO ADVERTISING SALES, THAT IS WHERE THEY SHOW THAT, AS WELL, BECAUSE OF THE HIGH POSITIONING AMONG THE STRONGEST GEN Z COHORT. SHERY: THE LATEST ON GEN Z GROUP. SHERY: SHE IS CONFIDENT THE IPO BOOM AND HONG KONG WILL CONTINUE, THANKS TO INTERNATIONAL INVESTOR RENEWED APPETITE FOR CHINESE ASSETS. HE ALSO -- THEY ALSO TOLD US ABOUT HOW THE CLIENT TO SUSTAIN THE STRONG PERFORMANCE FOLLOWING A RECORD PROFIT IN THE SECOND QUARTER. > > WHAT REALLY STANDS OUT FOR ME IN THIS QUARTER IS THE FACT THAT IT IS WRITING ON A PRETTY SUSTAINED MOMENTUM. IF YOU LOOK AT OUR RESULTS, THIS IS ACTUALLY ANOTHER SET OF RECORD HALF YEARLY RESULTS. WE ALREADY HAD A STRONG SET ALREADY AND THE SECOND HALF OF 2024. AND GRADUALLY WE SEE A RETURN OF INTEREST FROM INTERNATIONAL INVESTORS AND A LOOK A DEPLOY MORE CAPITAL TO THE SIDE OF THE WORLD. THIS MOMENTUM STARTED IN THE SECOND HALF AND SO FAR THEY HAVE BEEN SUSTAINED SO FAR. THEY HAVE BEEN FOCUSING ON CHINA ASSETS. AND COMING BACK, IT IS A VERY GOOD THING THAT WE HAVE EQUALLY ROBUST PIPELINES TO MATCH APPETITES WITH CURRENTLY OVER 200 COMPANIES ALREADY HAVING FOUND THE APPLICATIONS. IN FACT, ON A DAILY BASIS, I'M SPEAKING TO A LOT MORE. I THINK WITH THE BACKDROP I REALLY INTEREST RETURNING IN EARNEST, AS WELL AS ALL THESE VERY EXCITING INVESTMENT OPPORTUNITIES COMING ONLINE, I DO HOPE THAT THE MOMENTUM CAN CARRY ON. > > HOW CONFIDENT ARE YOU THAT HONG KONG CAN RECLAIM THE NUMBER ONE IPO NUMBER? > > AT THE MOMENT WE ARE IN A GOOD POSITION AND WE DO HAVE THE PIPELINE TO HELP US STAY UP THERE. BUT, TO ME, THE MORE IMPORTANT THING IS TO REALLY MAKE SURE THAT WE ARE ABLE TO SUPPORT THE FUNDRAISING NEEDS OF THE COMPANIES. THIS YEAR I KEEP TALKING ABOUT THE IPO PIPELINE AND WE NEED TO LOOK AT THE FOLLOW ON, WHICH HAS RAISED MORE MONEY THAN THE IPO PROCEEDS. AND THEY HAVE RAISED ABOUT 16 BILLION U.S. DOLLARS BY WAY OF IPO'S, BUT WE HAVE ACTUALLY MORE THAN 40 BILLION RAISED BY COMPANIES ALREADY THAT'S IT ON OUR EXCHANGE. SO REALLY TO SUPPORT THE FUNDRAISING NEEDS OF THESE COMPANIES, WE CONTINUE TO IMPROVE OUR FRAMEWORK. > > ARE YOU DOING A LOT OF MARKETING OR ARE COMPANIES COMING TO YOU NOW? > > BOTH. COMPANIES CERTAINLY SAW HOW WILL WE HAVE DONE IN THE IPO SPACE. ON AVERAGE, WE PROBABLY MEET WITH TWO TO THREE COMPANIES PER DAY, AND I WOULD LIKE TO EXPAND THE UNIVERSE A LITTLE BIT. I THINK IT IS POSSIBLE THAT WE HAVE SEEN AN INCREASED APPETITE OF COMPANIES BEYOND JUST THE MAINLAND CHINA WANTING TO PICK HONG KONG, SO YEAR TO DATE, WE HAVE LISTED COMPANIES FROM THAILAND, SINGAPORE, AND THERE ARE MORE IN THE PIPELINE. I CERTAINLY WILL DO MORE IN TERMS OF THIS MARKETING ACTIVITY. > > THERE ARE THOSE OUT THERE THAT CALL THIS RECOVERY YOU ARE SEEN AS SOMETHING THAT IS MADE IN CHINA, AND THAT WHAT YOU ARE SEEING IN TERMS OF THE PIPELINE HAS BEEN DRIVEN BY GOVERNMENT POLICY TO GEOPOLITICS. > > FIRST OF ALL, I'M NOT SURPRISED. IT IS CAPABLE OF PRODUCING SO MANY EXCITING COMPANIES, WHICH INVESTORS AROUND THE WORLD WOULD LIKE TO INVEST IN. IT IS NATURAL AND TOTALLY UNDERSTANDABLE THIS MADE IN CHINA PHENOMENA, BUT THAT SAID, GIVEN THAT HONG KONG IS AN INTERNATIONAL FINANCIAL CENTER, I WE STAND IN THE MIDDLE AND SUPER CONNECTED BY MAINLAND CHINA AND THE REST OF THE WORLD, WHAT I WOULD LIKE TO SEE IS REALLY TO CONTINUE BRINGING MORE PARTICIPANTS INTO THE UNIVERSE. > > THAT WAS THE HKEX CEO SPEAKING WITH BLOOMBERG. FOR MORE AHEAD ON "THE ASIA TRADE," THIS IS BLOOMBERG. ♪ SHERY: THE LATEST -- AVRIL: BLOOMBERG LEARNED THAT THEY ARE CONSIDERING ONE OF THEIR BIGGEST ORGANIZATIONAL OVERHAUL IN YEARS TO BOOST RETURNS AND EFFICIENCY. SOURCES SAY THAT THE SINGAPORE'S STATE OWNED INVESTOR MAY DIVIDE THE BUSINESS INTO THREE ARMS, FOCUSED ON DOMESTIC, FOREIGN AND FUND INVESTMENTS. THE FUND WOULD FUNDAMENTALLY RESTRUCTURE THE GIANTS AND MADE RISING PRESSURE TO DELIVER HIGHER RETURNS AND STREAMLINE OPERATIONS. FASHION BRAND GUESS IS GOING PRIVATE AND A .4 BILLION DEAL WITH AUTHENTIC BRAND AND COMPANY COFOUNDERS. SHAREHOLDERS WILL GET 16.70 FIVE DOLLARS IN CASH PER SHARE, A 26% RISE COMING INTO THE CLOSE. AUTHENTIC WILL TAKE A MAJORITY STAKE IN ITS INTELLECTUAL PROPERTY. SONY WILL RAISE THE U.S. PRICE OF ITS PLAYSTATION 5 VIDEOGAME CONSOLE TO $550, A $50 INCREASE. IT FOLLOWS RIVAL CONSOL MAKERS MICROSOFT AND NINTENDO AND HIKING PRICES AS TARIFFS INCREASE THE COST OF IMPORTS. IN A BLOG POST, SONY SAYS IT IS NAVIGATING A CHALLENGING ECONOMIC ENVIRONMENT. AND HYUNDAI MOTORS HAS SIGNED A MULTI-AGREEMENT WITH A START UP TO DEVELOP SELF DRIVING CAPABILITIES. IN A STATEMENT, THE COMPANY SAY THEY WILL PRODUCE ADVANCED DRIVER SYSTEM ASSISTANCE FOR HONDAS MASS-MARKET VEHICLES BY 2027. WE HAVE RAISED MORE THAN 00 MILLION, INCLUDING 30 MILLION SINCE 2017. SHERY: TAKE A LOOK AT SOME OF THE STOCKS WE WILL BE WATCHING WHEN THE MARKET TRADES AND JAPAN. SOUTH KOREA AND AUSTRALIA. WHEN IT COMES TO SOFTBANK, LOOK AT THE LAST CLOSE, IT WAS DOWN MORE THAN 6%. WE COULD MOVE AGAIN TODAY. WE CONTINUE TO SEE THE SELLOFF AND YOU WESTECH WITH CONCERNS OF OVER A $2 BILLION INVESTMENT IN INTEL. SOFTBANK SAW ITS BIGGEST INTRADAY DECLINE SINCE APRIL, AND INTEL IS IN TALKS WITH LARGE INVESTORS FROM EQUITY FUSION AT A DISCOUNTED PRICE. WE ARE WATCHING NORTHERN SHARES AFTER A 100 10% SURGE WAS POSTED WITH FULL INCOME REVENUE CLIMBING 30% TO $4.12 BILLION, DRIVING STRONG GOLD PRICES AMID TARIFF CONCERNS. WE WILL BE SPEAKING TO THE CEO OF NORTHERN STAR IN THE NEXT HOUR. THE MARKET OPENS OUR NEXT. THIS IS BLOOMBERG. ♪ > > THIS IS THE ASIA TRADE. ALL EYES ON JACKSON HOLE AND CHAIR POWELL AND HIS SPEECH ON FRIDAY. WILL HE SIGNAL A CUT FROM THE FEDERAL RESERVE COME SEPTEMBER AT A TIME WHEN THE FEDERAL RESERVE CONTINUES TO BE ATTACKED BY PRESIDENT TRUMP FOR FED OFFICIALS TO CUT RATES? AVRIL: CHAIR POWELL WILL HAVE HIS WORK CUT OUT FOR HIM WHEN HE SPEAKS AT JACKSON HOLE, BUT ALL THINGS CONSIDERED, HE HAS BEEN DOING QUITE A GOOD JOB IN HELPING MARKETS RECALIBRATE SOME OF THEIR EXPECTATIONS. THINK BACK TO THE LAST JACKSON HOLE, THIS WILL BE HIS LAST ONE AS FED CHAIR. SHERY: WE WILL BE WATCHING WHAT BOJ GOVERNOR UEDA HAS TO SAY AS WE WATCH THE JAPANESE YEN AND JAPANESE MARKETS. THE YEN HAS BEEN PRETTY RANGE BOUND IN THE LAST FEW WEEKS. THAT 147 LEVEL AGAINST THE U.S. DOLLAR. G10 FX CURRENCIES, ONE MONTH IMPLIED VOLATILITY AT THE LOWEST LEVELS IN A YEAR. WE ARE BRACING FOR WHAT COULD COME OUT OF JACKSON HOLE. NIKKEI STOCKS FALLING FOR THREE CONSECUTIVE SESSIONS ALREADY. WE ARE TALKING ABOUT DOWNSIDE PRESSURE COMING FROM ALSO THE TECH SECTOR. WE HAD ANOTHER SELLOFF IN THE OVERNIGHT SESSION. WE ARE WATCHING JGB YIELDS, THE 10 YEAR YIELD AT THE CLOSEST LEVELS WE HAVE NOT SEEN SINCE 2008 OR SO. SUPERLONG YIELDS. MUCH HIGHER 30 YEAR YIELDS AT LEVELS WE HAVE NOT SEEN EVER COME NEAR RECORD HIGHS AT THE MOMENT GIVEN FISCAL CONCERNS ONGOING IN JAPAN. LOOK AT HOW SOUTH KOREA IS COMING ONLINE. WE DO HAVE TRADE NUMBERS OUT OF SOUTH KOREA FOR THE FIRST 20 DAYS OF AUGUST. IF YOU SCROLL UP, YOU CAN SEE THOSE NUMBERS FOR EXPORTS RISING 7.6% YEAR ON YEAR. WHEN IT COMES TO THE IMPORT NUMBERS, A GAIN OF 4%, AND KOSPI GAINING 0.4%. WE HAVE SEEN SIGNIFICANT PRESSURE ON THE KOREAN MARKETS THIS WEEK, RISK OFF CAUTION AHEAD OF JACKSON HOLE. > > THAT IS THE LEAD PLAYING OUT IN TREASURIES. LOOK HOW THE U.S. 10 YEAR, SOME PRESSURE IN. WE HAD A MORE DOVISH THAN EXPECTED RBNZ, SO WE ARE WATCHING THE KIWI AS WELL AGAINST THE GREENBACK. IT IS PICKING UP SLIGHTLY. IN AUSTRALIA WE WILL BE WATCHING OUT FOR HOW INVESTORS DIGEST EARNINGS. WE HAD THE LIKES OF FOUR YEAR NET AND COPE MORE THAN DOUBLED -- NET MORE THAN DOUBLED. THE ASX 200 IS EXTENDING GAINS FROM A DAY AGO. SHERY: LET'S BRING IN THE CIO OF GLOBAL LIQUIDITY MARKETS, AFFILIATED HERMES, FOR A LOOK AT WHAT TO EXPECT THIS WEEK ON THE MARKETS. HOW ARE YOU POSITIONING FOR JACKSON HOLE AND WHAT WILL YOU BE WATCHING OUT OF CENTRAL BANKERS THIS WEEK? DEBORAH: OUR EXPECTATIONS FOR JACKSON HOLE IS CHAIR POWELL WILL USE THIS AS MAY BE HIS LAST SWANSONG. HE'S BEEN PRIMING THE MARKET, ALLOWING US TO EXPECT SOME CHANGE IN HOW THE FED COMMUNICATES, PERHAPS SOME CHANGE WITH REGARD TO THE PRESS CONFERENCES THAT FOLLOW EACH MEETING, THE DOT PLOT AND HOW IT'S DISSEMINATED AND WHAT THE EXPECTATIONS ARE BASED FROM THAT ON A QUARTERLY BASIS. WE THINK IT WILL BE MORE THOSE TYPES OF ANNOUNCEMENTS THAT COME FROM CHAIR POWELL'S SPEECH, NOT NECESSARILY SOMETHING THAT LEADS THE MARKET ONE WAY OR THE OTHER FROM A DIRECTIONAL STANDPOINT WITH THE SEPTEMBER MEETING AS TO WHETHER THEY WILL CUT RATES OR NOT. HAVING SAID THAT, IT HAS BEEN NOTED FROM A MARKET PERSPECTIVE THAT IF HE DOES NOT ADDRESS THAT TOPIC, THE MARKETS WON'T LIKE THE SPEECH AT ALL, AND BACKLASH CAN HAPPEN FROM THAT STANDPOINT. SHERY: GIVEN HOW PRICED IN IT IS FOR THOSE CUTS COME SEPTEMBER. WHEN IT COMES TO FURTHER SIGNALING FOR THE REST OF THE YEAR, WHAT WILL YOU BE WATCHING THAT COULD POTENTIALLY MOVE THE MARKETS? ARE THERE ANY ASSETS THAT ARE MORE VULNERABLE AT THIS POINT? DEBORAH: I THINK YOU ARE LOOKING AT DATA DEPENDENCY CONTINUING. I THINK HE WILL EMPHASIZE THAT, WHICH WILL NOT MAKE THE ADMINISTRATION VERY HAPPY. HAVING SAID THAT, I THINK THE DATA WE'VE BEEN GETTING HAS BEEN MIXED ENOUGH THAT WE'VE MOVED OUR OWN CALL FROM WHAT WOULD HAVE BEEN AN OCTOBER DECREASE IN RATES BY 25 BASIS POINTS BY THE FED TO A SEPTEMBER ONE. ULTIMATELY THAT IS BASED ON SOME OF THE MIXED DATA WE HAVE SEEN WITH THE EMPLOYMENT REPORT AND REVISIONS THAT CAME ABOUT FROM THAT. CBI BEING RELATIVELY TAME, BUT PPI ON THE OTHER SIDE OF THE EQUATION, RETAIL SALES, HOUSING ALL HAVING STRONG NUMBERS. THE MIXED NUMBERS ARE SENDING OFF DIFFERENT SIGNALS TO THE MARKET, WHICH IS WHY WHEN YOU LOOK BACK AT THE EMPLOYMENT REPORT AND WHAT WAS INFERRED FROM A SEPTEMBER RATE CUT EXPECTATIONS STANDPOINT RIGHT AFTER THOSE NUMBERS, IT WAS 120% OR SO. WE ARE DOWN TO SOMETHING JUST ABOVE 80% ON AN EXPECTATION OF A 25 BASIS POINT RATE CUT. DATA DEPENDENCY AND WHAT THE ADDITIONAL NUMBERS ARE IS IMPORTANT. ONE THING THEY WILL BE LOOKING AT IS A SOFT VERSUS HARD DATA. WE HAD A WIDE DIVERGENCE BETWEEN THOSE TYPES OF NUMBERS TWO MONTHS AGO, THEN THEY CONVERGED. MOST RECENTLY, MAY BE MORE OF A DIVERGENCE HAS STARTED AGAIN. THAT IS ANOTHER IMPORTANT SET OF ECONOMIC STATISTICS THE FED WILL BE WATCHING. AVRIL: TO YOUR POINT, POWELL HAS BEEN SKILLFUL IN MANAGING EXPECTATIONS, POINTING THINGS BACK TO THE DATA, BUT IN THE LAST MEETING WE DID GET TWO DISSENTERS. GOING FORWARD, MIGHT HE HAVE HIS WORK CUT OUT FOR HIM? HOW MUCH HARDER IS THIS GOING TO BE? DEBORAH: YES, THERE WERE TWO DISSENTERS AT THE LAST MEETING. IT WOULD BE EXPECTED THAT THOSE TWO WOULD CONTINUE TO BE IN DISSENSION FOR HOLDING RATES, WANTING TO CUT RATES. BOTH OF THEM ARE POTENTIALLY VIABLE CANDIDATES TO BE REPLACING THE FED GOVERNOR POSITION THAT ENDS IN JANUARY OF 2026. THEY ARE GOING TO GO ALONG THOSE LINES FOR A DECREASE IN RATES. WE WILL SEE WHAT STEVE MORAN, WHO IS THE NOMINEE, WHETHER HE'S ACTUALLY A VOTING MEMBER OR BEEN CONFIRMED YET FOR THE SEPTEMBER MEETING. HE COULD BE A THIRD DISSENSION. YOU HAVE SEEN OTHER FED GOVERNORS, YOU'VE SEEN DADLY, -- SEEN DALY, WHERE ESSENTIALLY THEY ARE FEELING LIKE THERE IS NOT PRESSURE RIGHT NOW TO LOWER RATES. I THINK IT WILL BE MORE DIFFICULT TO PUT EVERYONE IN THE SAME PATH, THAT THERE ARE GOING TO BE DISSENSIONS. IF YOU LOOKED AT THE FED MINUTES FROM THE LAST MEETING THAT WERE JUST RELEASED, THOSE ULTIMATELY CONFIRMED THAT THERE IS A CONCERN ABOUT INFLATION, BUT AT THE SAME TIME THERE SEEMS TO BE EQUALLY AN AMOUNT OF CONCERN ABOUT SLOW DOWN AN ECONOMIC STANDPOINT AND MAKING SURE THERE IS NO EXPECTATION OF GOING INTO ANY TYPE OF RECESSION, WHICH ULTIMATELY WITH THE 3% GDP RATE IN THE SECOND QUARTER, WE ARE NOT NEAR THAT, BUT THERE IS STILL CONCERN OVER THAT TYPE OF DIFFERENTIAL BETWEEN THE VARIOUS VOTING MEMBERS OF THE FOMC AT THIS POINT. AVRIL: THE SLIGHT UNCERTAINTY IS ALSO PROVIDING INVESTMENT OPPORTUNITIES. WHAT ARE YOU ADVOCATING BETWEEN NOW AND THE SEPTEMBER MEETING? DEBORAH: THERE IS A LOT OF VOLATILITY, BUT WITH VOLATILITY COMES OPPORTUNITY. WE ARE ADVOCATING AT THIS POINT GETTING LONGER FROM A DURATION PERSPECTIVE, BUT DOING IT AT THE POINTS IN TIME IN THE MARKET WHEN WE ARE GETTING EXTRA YIELD IN THE PROCESS, AND A BIT LONGER DATED SECURITIES ARE HELPFUL IN THAT PROCESS AS WELL. WE ARE ADVOCATING LOOKING AT MORE OF A BARBELLED STRUCTURE. THE FRONT END UNTIL THE FED MOVES, CONTINUES TO HOLD UP WELL, AND THE REST OF THE CURVE IS FLAT TO SLIGHTLY INVERTED. YOU ARE STILL WELL-POSITIONED TO HOLD A SUBSTANTIAL AMOUNT AT THE FRONT END. WITH THE BARBELLED STRUCTURE SET OFF BY THE LONGER DATED SECURITIES, USING THE OPPORTUNISTIC TRADE FROM A RANGE TRADING PERSPECTIVE THAT YOU GET IN THIS TYPE OF FAIRLY VOLATILE MARKET WHERE SPREADS OF 10, 20, EVEN 30 BASIS POINTS DIFFERENTIAL ARE NOT THAT UNCOMMON. AVRIL: TALK TO US ABOUT THESE FISCAL CONCERNS ON THE LONG END, THEY HAVE NOT REALLY GONE AWAY. TO WHAT EXTENT DO YOU THINK POTENTIALLY TARIFF OR CHIP REVENUE MIGHT HELP MITIGATE A BIT OF THIS? DEBORAH: CERTAINLY THE TARIFF REVENUE. IF YOU GO BACK TO THE APRIL ANNOUNCEMENTS OF TARIFFS, THERE WERE VIOLENT REACTIONS IN THE MARKETPLACE, BOTH EQUITY AND FIXED INCOME, ACROSS ALL MARKETS. THOSE HAVE ESSENTIALLY DWINDLED WITH WHAT HAS BEEN PASSING TIME. SOME AGREEMENTS BEING SETTLED AT MUCH LOWER NUMBERS THAN WHAT HAD INITIALLY BEEN ANNOUNCED. AND WITH CONTINUED LATITUDE IT SEEMS LIKE TO BE ABLE TO EXTEND THOSE NEGOTIATIONS GOING FORWARD. THE MARKET HAS TAKEN A LITTLE BIT MORE IN STRIDE THE DAILY INFORMATION THAT WE GET FROM A TARIFF PERSPECTIVE. HAVING SAID THAT, WHEN YOU LOOK AT THE ONE BIG BEAUTIFUL BILL THAT WAS AGREED UPON IN JULY, WITH THE CUTS THAT ARE COMING FROM THAT PERSPECTIVE IN REVENUE, THERE IS A NEED FOR REPLACING THAT REVENUE OR HAVING A DEFICIT THAT GOES HIGHER THAN IT IS TODAY. THAT I THINK IS NOT SOMETHING THAT MOST IN CONGRESS WOULD LIKE TO SEE, SO WHERE DOES THAT COME FROM? POTENTIALLY FROM THE TARIFF REVENUE. THAT IS NOT GOING TO COVER ALL OF IT. THERE NEEDS TO BE DIFFERENT PRODUCTIVITY GAINS. I THINK CONGRESS IS LOOKING AT TARIFFS AS A WAY OF CLOSING THAT GAP TO SOME DEGREE THAT THE ONE BIG BEAUTIFUL BILL INFORMATION HAS PROVIDED US WITH AT THIS POINT. HOWEVER IT DOESN'T HAPPEN QUICKLY, IS GENERALLY THE MARKET'S CONCERN. HOW QUICKLY IT HAPPENS WILL BE KEY TO THE SUCCESS OF THIS OR THE FAILURE OF IT. AVRIL: DEBORAH, IT'S BEEN GOOD TO GET YOUR INSIGHTS. THANK YOU SO MUCH. CIO OF GLOBAL EQUITY MARKETS AT FEDERATED HERMES. LET'S LOOK AT SOME OF THE STOCKS IN FOCUS IN AUSTRALIA ON THE BACK OF THESE EARNINGS. FULL YEAR NET INCOME FOR NORTHERN STAR, THE LARGEST GOLD MINER ON THE ASX, ABOUT DOUBLED. YOU ARE SEEING INVESTORS REWARDING THE COMPANY, 3% HIGHER. THIS IS BUCKING WHAT WE SAW EARLIER IN THE WEEK WHERE THE STOCK CAME UNDER PRESSURE. WHITEHAVEN WAS COMING IN THE OTHER DIRECTION. FULL YEAR NET INCOME WAS HIGHER THAN ESTIMATED. FONTERRA IS ANOTHER COMPANY WE ARE WATCHING AS IT LIFTED ITS MILK PRICE FORECAST TO 0.15 NEW ZEALAND DOLLARS. STILL AHEAD ON "THE ASIA TRADE," WE SPEAK LIVE WITH THE NORTHERN START MANAGING DIRECTOR AND CEO STUART TONKIN ABOUT EARNINGS AND THEIR OUTLOOK FOR GOLD. THIS IS BLOOMBERG. ♪ SHERY: WE ARE WATCHING ASIAN TECH STOCKS AFTER THAT WEEK LONG SELLOFF WE'VE SEEN IN THE SECTOR. WE HAVE CONTINUED TO SEE THE DOWNSIDE PRESSURE ON SOFTBANK AFTER THAT $40 BILLION PLUS STOCK RALLY THIS MONTH, HITTING A WALL. PLANS TO INVEST $2 BILLION IN INTEL BEING SCRUTINIZED. WE HAVE SEEN THEM IN OVERBOUGHT TERRITORY. TRADING FURTHER ABOVE ANALYST TARGET PRICES FOR QUITE SOME TIME. SAMSUNG ELECTRONICS GAINING GROUND. WE SAW A REPORTS THAT SAMSUNG PASSED THE HB M4 RELIABILITY TEST. SK HYNIX LOSING MORE THAN 2% AT THE MOMENT. OVERNIGHT WE ARE ALSO FOLLOWING MICROSOFT, LIMITING CHINESE COMPANIES ACCESS TO EARLY WARNINGS ABOUT FLAWS IN THIS TECHNOLOGY. THIS FOLLOWS AN INVESTIGATION INTO WHETHER A LEAK LEAD TO A SERIES OF HACKS EXPLOITING VULNERABILITIES IN A SHAREPOINT SOFTWARE. LET'S GET MORE FROM OUR HSTECH CORRESPONDENT ANNABELLE DROULERS IN HONG KONG. ANNABELLE: THE CHANGE TOOK PLACE LAST MONTH. THERE ARE QUITE A FEW DETAILS IN THIS, BUT TO GIVE THE MAIN TAKEAWAY, MICROSOFT OPERATES IT IS CALLED THE MICROSOFT ACTIVE PROTECTIONS PROGRAM. THE GOAL OF THAT IS TO GIVE SECURITY SOFTWARE COMPANIES EARLY DETAILS ON PRODUCT FLAWS SO THAN THOSE COMPANIES CAN PROVIDE UPDATED PROTECTIONS FOR THEIR CUSTOMERS FASTER. THIS OPERATES WORLDWIDE, BUT WHAT WILL HAPPEN NOW IS ACCESS WILL BE LIMITED IN COUNTRIES WHERE MAPP PARTICIPANTS NEED TO REPORT VULNERABILITIES TO THEIR GOVERNMENTS. THAT INCLUDES IN CHINA. MICROSOFT HAS FACED A SERIES OF HACKS, RECENTLY ON ITS SHAREPOINT SOFTWARE. AT BLOOMBERG WE HAVE REPORTED THERE IS A CONCERN THAT HACKERS COULD HAVE BEEN AIDED BY MAAPP PARTNERS -- BY MAPP PARTNERS LEAKING THOSE FLAWS. PARTNERS IN CHINA WILL NOT GET ADVANCED WARNINGS, THEY WILL GET SECURITY DETAILS AS THEY ARE RELEASED. AVRIL: WE HAD BAIDU NUMBERS OVERNIGHT ON THE EARNINGS FRONT. WHAT WERE YOUR KEY TAKEAWAYS? ANNABELLE: WE SAW THAT REACTION, ADR'S SLIPPED INTO THE CLOSE, DOWN NEARLY 3%. OVERALL THERE WASN'T NOT TOO MANY POSITIVES. SALES WERE DOWN 4% TO $4.6 BILLION, THOUGH NET INCOME DID RISE MORE THAN 30%. SOME OF THE MAIN TAKEAWAYS, WE SAW FURTHER WEAKNESS IN THE AD REVENUE BUSINESS. THAT IS RELATING TO THE SEARCH BUSINESS. BAIDU, CONCERNS ABOUT HOW AI PROJECTS ARE CANNIBALIZING SOME OF THAT REVENUE AS WELL. THE COFOUNDER ROBYN LEE IN THE EARNINGS CALL SAID THEY WILL CONTINUE SPENDING AND INCREASING SPENDING ON AI, BUT THEY ARE STILL A WAYS OFF. IN THE MEANTIME WE HAVE AN UPDATE ON THE ROBOTAXI BUSINESS. THAT IS CONTINUING ITS GLOBAL ROLLOUT. . THAT IS ONE OF THE MORE POSITIVES THE CLOUD BUSINESS PICKED UP, ALTHOUGH THAT IS A LOWER MARGIN BUSINESS AS WELL. SHERY: ANNABELLE DROULERS, OUR TECH CORRESPONDENT. BELLE AND I WILL BE RETURNING WITH BLOOMBERG TECH ASIA TOMORROW. HUMANOID ROBOTS TAKING CENTER STAGE THIS TIME. TUNE IN FRIDAY AT 8:30 A.M. HONG KONG TIME. SUBSCRIBERS CAN ALSO STREAM IT THROUGH THE TERMINAL USING THE TV < GO > FUNCTION. AVRIL: GOOGLE IN THE MEANTIME SAYS GEMINI IS A MAJOR PART OF ITS STRATEGY AS THE COMPANY DEEPENS ITS INTEGRATION OF AI ACROSS PRODUCTS. WE SPOKE TO THE COMPANY'S SVP FOR PLATFORMS AND DEVICES AS IT LAUNCHED A NEW SLATE OF CONSUMER GADGETS, INCLUDING SMARTPHONES AND WIRELESS EARBUDS. > > GEMINI IS A HUGE PART OF GOOGLE'S STRATEGY. WE'VE MADE SO MUCH PROGRESS WITH IT. WE'VE GOT THE BEST MODELS AROUND, THE BEST AI ASSISTANT. WE ARE SO EXCITED ABOUT WHAT WE'VE TALKED ABOUT TODAY. I PERSONALLY LOVE USING THE VIDEO MODEL. YOU SAW A VIDEO OF MY DOG TALKING, WHICH WAS FUN TO PUT TOGETHER. [LAUGHTER] HE'S A PORTUGUESE WATER DOG WHO SOMEHOW SPEAKS ENGLISH. IT WAS REALLY FUN TO PUT THAT TOGETHER. THIS IS THE POWER OF AI NOW, YOU CAN DO THINGS FOR FUN, YOU CAN BE MORE PRODUCTIVE WITH IT. GEMINI IS THE THING THAT POWERS IT ALL. > > STEPH CURRY IS DOING THINGS WITH SPORTS. I'M INTERESTED HOW THIS SETS YOU APART. WHAT ARE YOU OFFERING VERSUS THE COMPETITION? HOW AM I GOING TO USE IT IN A WHOLLY DIFFERENT WAY THAN I COULD? > > AI IN GENERAL TRANSFORMS ALL THESE PRODUCTS. ON THE PHONE, IT WILL MAKE IT SO MUCH EASIER TO INTEROPERATE. TALK TO THE AI AND IT CAN DO THINGS FOR YOU. SHOW YOUR CAMERA TO THE AI AND IT WILL GIVE YOU HINTS ABOUT A PROJECT AT HOME LIKE FIXING PLUMBING OR SHELVES. AI CAN HELP. WE ARE EXCITED ABOUT OUR PARTNERSHIP WITH STEPH CURRY TO APPLY THIS AI TECHNOLOGY TO PERSONAL COACHING. I CANNOT THINK OF A BETTER PERSON TO WORK WITH. HE HAS SLEEP COACHES, NUTRITION COACHES, FITNESS COACHES. HE WANTED TO WORK WITH US TO BRING THIS KIND OF CAPABILITY FOR PERSONAL COACHING TO EVERYONE. THAT IS WHAT THAT PARTNERSHIP IS ALL ABOUT. > > WHILE YOU WERE HELPING OVERSEA -- OVERSEE THE FITBIT, IT IS NOW I WATCH YOU HAVE ON. WHAT FORM FACTORS ARE WE YET TO SEE? YOU HAVE THE WATCH, YOU HAVE GOT THE PHONES. WHERE NEXT? > > I THINK THERE MIGHT BE A FEW COMING NEXT. WE ARE BRINGING JEFF A NIGHT TO A BUNCH OF SERVICES -- BRINGING GEMINI TO A BUNCH OF SERVICES YOU USE EVERY DAY LIKE IN YOUR CAR, ON YOUR TELEVISION, ON YOUR SMART SPEAKER'S. AN EXCITING THING THAT WILL COME IN THE FUTURE IS GEMINI IN GLASSES. > > ANY YEAR YOU THINK THAT WILL BE COMING OUT? 2027? > > SOME TIME NEXT YEAR IT WILL BE PRETTY EXCITING TO SEE. AVRIL: GOOGLE PLATFORMS AND DEVICES'S SVP SPEAKING WITH BLOOMBERG TECH'S CAROLINE HYDE. MORE AHEAD ON "THE ASIA TRADE." THIS IS BLOOMBERG. ♪ AVRIL: HOWARD MARKS WARNS U.S. STOCKS APPEARED TO BE IN THE EARLY DAYS OF A BUBBLE. MARKS SPOKE EXCLUSIVELY ABOUT HIS CONCERNS OVER RISING VALUATIONS AND INVESTOR COMPLACENCY. HOWARD: THIS IS ALL JUST FEELING AND AN OPINION, NONE OF THIS IS FACTUAL, BUT IT DOES SEEM THAT STOCKS ARE EXPENSIVE RELATIVE TO WHAT I CALL FUNDAMENTALS, OR YOU MIGHT CALL REALITY. THE OUTSTANDING REASON I THINK IS THAT THERE HAS NOT BEEN A SERIOUS MARKET CORRECTION IN 16 YEARS. PEOPLE GET OUT OF THE HABIT OF THINKING ABOUT MARKET CORRECTIONS. THE BIGGEST SINGLE MISTAKE -- I'VE BEEN THINKING A LOT, WHAT IS THE SINGLE BIGGEST MISTAKE INVESTORS MAKE? I CONCLUDED THAT IT IS THEY CONCLUDE THE WAY THINGS ARE TODAY IS THE WAY IT WILL ALWAYS BE, BUT THE THINGS THAT WILL BE HAPPENING WILL ALWAYS CONTINUE TO HAPPEN. WHEREAS A REVERSION TO THE MEAN IS MUCH MORE LIKELY. I THINK IT HAS WORKED VERY WELL BEING AN EQUITY INVESTOR, DOING IT ON LEVERAGE HAS WORKED EVEN BETTER. CONCENTRATING IN A FEW STOCKS HAS GONE VERY WELL. INVESTORS ARE BY NATURE OPTIMISTIC. THAT OPTIMISM DIES HARD. I JUST THINK THAT THE FLUCTUATIONS OF THE MARKET ARE MOSTLY RELATED TO PSYCHOLOGICAL FLUCTUATIONS, AND PEOPLE GO FROM NEUTRALITY TO LIKING STOCKS TO LIKING THEM A LOT TO LIKING THEM A TON TO LIKING THEM TOO MUCH. THAT IS THE CONTINUATION THAT CREATES BUBBLES. WE PROBABLY ARE IN THE EARLY DAYS OF THAT. > > WHEN YOU TALK ABOUT LIKING, MAY BE LIKING THESE ASSETS TOO MUCH, CAN YOU PUT INTO PERSPECTIVE THE LAST TIME YOU SAW THIS TYPE OF ENVIRONMENT THAT LEFT YOU THINKING SOME OF THE OPPORTUNITIES ARE NOT AS GREAT WHEN IT COMES TO BUYING THESE ASSETS AT CURRENT VALUATIONS? IS THERE ANOTHER TIME THAT THIS REMINDS YOU OF IN ANY CAPACITY? HOWARD: I GUESS THE LAST TIME WAS PROBABLY AROUND 1997 WHEN THE MARKET WAS KIND OF FALLING IN LOVE WITH TECH STOCKS. THE MARKET WAS ROCKETING ALONG, PEOPLE WERE NOT WORRIED ABOUT THE VALUE -- ABOUT THE LEVEL OF VALUATIONS. PEOPLE WERE OPTIMISTIC ABOUT THE OPPORTUNITIES FOR THE INTERNET. ALAN GREENSPAN FAMOUSLY CAUTIONED THERE MIGHT BE IRRATIONAL EXUBERANCE. I PICK '97 BECAUSE EVEN THOUGH GREENSPAN WAS CONCERNED ABOUT EXUBERANCE, THE MARKET WENT ON TO RISE FOR ANOTHER 2.5 TO 3 YE ARS. I SAID WE ARE IN THE EARLY DAYS. SHERY: OAKTREE CAPITAL CHAIRMAN SPEAKING WITH LISA ABRAMOWICZ. LOOK OUT EUROPEAN FUTURES ARE TRADING AFTER GAINS WE SAW IN THE LAST THREE SESSIONS. IT IS ALL ABOUT JACKSON HOLE THIS WEEK AT A TIME WHEN INFLATION IS SURPRISING TO THE UPSIDE, AND THE U.K. COMING TO AN 18 MONTH HIGH. ALREADY IN SWEDEN THE CENTRAL BANK HOLDING STEADY BECAUSE OF A PRICE SPIKE THERE. THIS IS BLOOMBERG. ♪ BREAKING > > LATEST PMI NUMBERS FOR THE MONTH OF AUGUST. PRELIMINARY NUMBERS COMING IN FOR THE COMPOSITE OF 51.9. SLIGHT IMPROVEMENT FROM THE PREVIOUS MONTH AND AN EXPANSIONARY TERRITORY. MANUFACTURING PMI STILL IN CONTRACTION TERRITORY. FLUCTUATING ABOVE THE 50 LEVEL BUT IT'S BEEN MOSTLY BELOW THE 50 LEVEL FOR THE YEAR. SERVICES PMI, SLIGHT DECELERATION FROM THE PREVIOUS MONTH. NOT SURPRISING GIVEN THAT WE JUST SAW THE PANS EXPORTS WITH THE STEEPEST DROP IN MORE THAN FOUR YEARS, GIVEN THE ONGOING CONCERNS OVER U.S. TARIFFS. APRIL: THE GEOPOLITICAL BACKDROP. TAKE A LOOK AT HOW GOLD IS FARING. SITTING A BIT SOFTER AT THE MOMENT. ALSO REALLY INTERESTING THAT EVEN AS WE SEE FED INDEPENDENCE CONCERNS PLAYING OUT, GOLD IS WATCHING OUT FOR THESE FED SIGNALS, FOR JULIE -- GEOPOLITICAL DEVELOPMENT. DESPITE THE GAINS, IT'S BEEN TRADING IN A NARROW RANGE. IT'S BEEN FORMING THIS WEDGE PATTERN WHICH TO SOME SPEAKS TO THE POTENTIAL FOR A BEARISH REVERSAL. A BIT SOFTER AT THE MOMENT. AS I SAID, QUITE THE CLIMB. PAUL ALLEN JOINS US NOW IN SYDNEY. THE RALLY IN GOLD PRICES HAS BEEN GREAT NEWS FOR AUSTRALIAN MINERS WITH NORTHERN STAR REPORTING NET PROFIT MORE THAN DOUBLING IN THE PAST 12 MONTHS. WHAT WERE THE KEY TAKEAWAYS FROM THE REPORT? PAUL: YEAH. THE WORDS GOLD AND RECORD TEND TO APPEAR IN THE SAME SENTENCE A LOT THESE DAYS. JUST HAD A RECORD YEAR. 110% WAS THE RISE IN NET INCOME. 862 MILLION U.S. DOLLARS, ABOUT 1.3 4 BILLION AUSSIE BALL -- DOLLARS. THE STORY BECOMES EVEN MORE INCREDIBLE. $5,000 ANNOUNCED SINCE APRIL. THIS ALLOWED NORTHERN STAR TO PAY A RECORD DIVIDEND, $.30. EVEN GOLD SALES WERE HIGHER AS WELL. STUART TANKAN WILL BE JOINING US. THE MOST FAMOUS ASSET OF NORTHERN STAR IS THE SUPER PIT. THE GIANT OPEN PIT MINE THAT'S CURRENTLY UNDERGOING A MAJOR EXPANSION TO IMPROVE PRODUCTION AND PROCESSING OF OR. THEN WE WILL BE WATCHING THE FUTURE OF THE HEMI ACID AS WELL. RECENTLY ACQUIRED BY NORTHERN STAR AFTER IT TOOK OVER BACK IN MAY OF THIS YEAR. THIS IS ONE OF THE INDUSTRY'S BIGGEST UNDEVELOPED PROJECTS, MORE FAMOUS FOR IRON ORE AS WELL. FOR THE COMING YEAR, NORTHERN STAR MAINTAINING SALES VOLUME DIED, COSTS BETWEEN 2300 AND 2700 AUSTRALIAN DOLLARS PER OUNCE. WELL BELOW THE GOLD PRICE AT THE MOMENT. AVRIL: STICK AROUND. LET'S UNPACK. FIRST INTERVIEW AFTER THOSE EARNINGS. FIRST OF ALL, CONGRATULATIONS ON THE STELLAR FULL YEAR. WE ALSO KNOW HOW IN THE PAST COUPLE QUARTERS. THERE HAVE BEEN A COUPLE OF MRS. WHETHER IT BE SALES GUIDANCE, CAPEX, ALL IN COSTS. SUPER PIT. WHAT IS THE PLAN HERE TO GET OPERATIONS BACK ON TRACK? > > THANKS FOR HAVING US ON THE SHOW. ABSOLUTELY. WE ARE IN A BUILDING PHASE AND IT'S NOT A STRAIGHT LINE. WE'VE HAD CHALLENGES OVER THE LAST YEAR. WE ARE PROUD OF THE RESULTS WE PUBLISHED TODAY. VERY STRONG FORWARD OUTLOOK. WE ARE ENCOURAGED WITH THE ENVIRONMENT WE ARE IN. WE ARE PATIENT. IT'S PAYING DIVIDENDS. CONTINUING TO IMPROVE. CASH FLOWS AND THE OUTLOOK. PAUL: PAYING DIVIDENDS LITERALLY. YOU'VE BEEN RETURNING CASH TO SHAREHOLDERS. WHAT'S THE PLAN IN PUTTING THE REST OF THIS MONEY TO WORK? > > WE SEE HUGE OPPORTUNITIES AND ORGANIC INVESTMENTS. THE SUPER PIT, WE ARE GOING TO DOUBLE THE THROUGHPUT FOR 27 MILLION TONS. THAT ASSET WILL BE TOP FIVE GLOBAL GOLD MINE. MULTI-DECADE OUTLOOKS. THOSE ARE THE RETURNS THAT ARE SO COMPELLING FOR INVESTORS TO LOOK AT NORTHERN STAR FOR THE LONG-TERM. THERE'S LOTS OF OTHER ORGANIC OPPORTUNITIES. WE'VE ADDED RESOURCE OUNCES TO OUR EFFORTS, GROWING SIGNIFICANT RESOURCE BASE. SURPASS EVEN DIVIDENDS OR SHARE BUYBACKS. THESE ORGANIC RETURNS ARE VERY COMPELLING FOR THE REINVEST MEANT IN THE GOLD BUSINESS TODAY. PAUL: I WAS FORTUNATE ENOUGH TO GET A TOUR FROM YOURSELF OF THE NEW FACILITY AND WILL BE BRINGING VIEWERS MORE ON THAT IN A COUPLE WEEKS. WE WILL HAVE A DOCUMENTARY ON THE AUSTRALIAN GOLD INDUSTRY COMING UP ON WALL STREET WEEK. ALSO TALKING ABOUT THE NEW HEMI PROJECT. WESTERN AUSTRALIA. JUST ACQUIRED EARLIER THIS YEAR. CAN YOU TELL US ABOUT THE RESERVES AND THE COST TO DEVELOP THIS? > > YEAH. WE ARE FORTUNATE TO CONSOLIDATE THE ASSET INTO THE BROADER NORTHSTAR PORTFOLIO. AROUND 20% OF THE COMBINED BUSINESS. IT BRINGS TO US THERE ANNOUNCED JOB RESOURCES, 30 MILLION OUNCES OF GOLD AND 6 MILLION OUNCES OF RESERVES. WITH A DEVELOPMENT PROGRAM OF ABOUT THREE YEARS TO GET IT TO COMMERCIAL PRODUCTION. THAT WOULD TAKE IT'S A 500,000 OUNCES A YEAR. AGAIN, THIS IS A HIGH-QUALITY COME ALONG LONG-LIVED, LOW COST ASSET. HENCE WHY IT TAKES THE BOXES FOR NORTHSTAR TO ACQUIRE IT. VERY LOW SOVEREIGN RISK JURISDICTION. COMPLEMENTARY TO OUR PORTFOLIO. WE STILL GOT TO BUILD IT AND GET THROUGH THE APPROVAL PATHWAYS. IT IS CERTAINLY A REALLY QUALITY ASSET TO ENTER THE PORTFOLIO. AVRIL: WHEN YOU SEE THAT THESE COSTS ARE STILL QUITE MANAGEABLE? AS WE UNDERSTAND, THERE WERE HIGHER RISKS ASSOCIATED WITH COSTS GIVEN THE NEED FOR MORE CAPITAL TO PERHAPS MANAGE YOUR PROCESS THESE FACTORY YOUR -- ORE. > > CERTAINLY WE LOOK AT THAT COST PROFILE TO UNDERSTAND WHERE IT SITS ON THE GLOBAL COST CURVE . WE ARE ENCOURAGED BY THE CURRENT GOLD PRICES, ABOVE 5200 AUSTRALIAN DOLLARS IS ABOUT 3300 U.S. DOLLARS. IT'S ENCOURAGING, THIS LARGE MARGIN FROM OUR COST BASIS. REALLY TO SURVIVE THROUGH THE CYCLES WITH THESE ASSETS, IT'S WHERE THE ASSETS ARE POSITIONED ON THE COST CURVE AND WE SEE HEAVY LOW IN THE COST CURVE IN THE QUARTER. THAT'S IMPORTANT THROUGHOUT THE CYCLES. GOLD MINERS ARE PRICE TAKERS. WE HAVE SEEN SOME OF THAT UPLIFT OF PRESSURE IN THE RECENT TIME. CERTAINLY THERE'S INSULATION WE CAN DO TO RUN EFFICIENCIES AND PRODUCTIVITIES INTO OUR ASSETS. THE COMPONENT OF THE PROCESSING FACILITIES AT HEMI ARE DIFFERENT. THEY ARE CERTAINLY KNOWN AND GLOBALLY UNDERSTOOD AND WE SEE THAT AS A UNIQUE STRENGTH, GIVEN THE SCALE AND QUALITY OF THAT ASSET. AVRIL: WE TALKED ABOUT THESE ORGANIC GROWTH OPPORTUNITIES. WHAT ABOUT IN ORGANIC GROWTH. WHAT IS YOUR SENSE OF THE MNA PROSPECTS FOR THE INDUSTRY FOR THE REST OF THE YEAR. WE'VE BEEN SEEING A FAIR BIT OF CONSOLIDATION ALREADY. > > NORTHERN STAR IS ABSOLUTELY UTILIZING ACQUISITIONS AS WE'VE DONE. THAT'S GETTING THE ASSET THE FIRST INSTANCE AND WHAT YOU CAN BRING TO THE ASSET. I THINK FOR US WE'VE GOT PLENTY NOW TO DEAL WITH ORGANICALLY. THE LOWER END OF THE A SX POTENTIALLY HAVE SOME SYNERGIES TO LIBERATE THROUGH COMBINATIONS IN BUSINESS. YOU WILL STILL SEE MORE OF THAT TO COME. THERE'S AN ARBITRAGE BETWEEN THE FOREIGN-EXCHANGE BETWEEN NORTH AMERICANS AND AUSTRALIAN CURRENCIES THAT POTENTIALLY MAKE AUSTRALIAN ASSETS MORE ATTRACTIVE. POTENTIALLY THE FLOW OF CAPITAL BACK INTO AUSTRALIA WHEN HISTORICALLY IT WAS MOVING FROM AUSTRALIA OFFSHORE. I STILL SEE IN THE HIGHS AND LOWS, MNA IS OFTEN OCCURRING. I THINK PEOPLE WOULD BE DUSTING OFF SOME OF THOSE PLANS. NOT JUST BETTING AGAINST GOLD PRICES. THEY ARE CERTAINLY LOOKING FOR GAINS FROM THE COMBINATION OF SYNERGIES AROUND INFRASTRUCTURE, MANAGEMENT TEAM SKILLS, SCARCITY OF LABOR, AND TRYING TO FIND ECONOMIES OF SCALE. JUST TO COMBAT THE COST PRESSURES THAT EXIST. PAUL: ANOTHER MACRO FACTOR IS THE CURRENT TO -- TARIFF ENVIRONMENT. ARE YOU SEEING ANY ON THE GROUND IMPACT FROM THE TARIFF ENVIRONMENT? HOW ARE YOU MANAGING THAT? > > WE CERTAINLY ARE. WE ARE SEEING $40 AN OUNCE IMPACT ACROSS THE TARIFF. IT COMES QUICKLY. I THINK THERE IS STILL INTERPRETATION AROUND CHANGING AND CHOPPINESS AROUND THOSE THINGS. I THINK IN TIME, MIGRATION AROUND SOURCE AND SUPPLY TO AVOID THOSE TARIFFS WILL BE TO THE DETRIMENT OR THE BENEFIT OF NATIONS OR COMPANIES. WE ARE FORTUNATE WE HAVE THE NATURAL HEDGE OF U.S. DENOMINATED COST AND IN COMES OUT OF ALASKA. WE HAVE AN AUSTRALIA DOMINATED, DOMICILED INCOME AND COSTS FROM WESTERN AUSTRALIA. A LOT OF THE MINING SUPPLY OF CONSUMABLES COMES OUT OF ASIA. THEY MIGHT HAVE BENEFITS IN SURPLUS SUPPLY THAT REDUCES COSTS TO US TRILLION CONSUMERS. IT'S JUST INTERESTING. WE ARE PRICE TAKERS. THE CHANGING OF THE TARIFFS COMPANIES NEED TO BE AGILE AND READY TO RESPOND. PAUL: WE WOULD BE REMISS IF WE DIDN'T ASK YOU WHERE YOU SEE GOLD PRICES HEADING FROM HERE. WE HEARD APRIL MENTIONING AT THE START THERE, THE WEDGE PATTERN THAT IS FORMING SOMETIMES MEANS WE COULD SEE A DECLINE. WHAT'S YOUR OUTLOOK? ARE WE GOING TO SEE A NEW FLOOR FOR GOLD PRICES IN 2026? HOW IS THAT BEING REFLECTED IN YOUR SPENDING AND INVESTMENT PLANS? > > I THINK ANY GOLD COMPANY JUST HAVE TO HAVE A SCENARIO IN ALL THE SITUATIONS. I'M ENCOURAGED WITH WHERE THE PRICE LEVELS ARE. I STILL SEE IT MAINTAINING AND LEVELING. I'M ENCOURAGED ON THE OUTLOOK IN THE MARGINS THAT OUR BUSINESS HAS ENJOYED. BUT WE HAVE TO BE REALIZED. WE HAVE ASSETS THAT ARE MULTI-DECADE. THEY WILL SEE MULTIPLE CYCLES. WE HAVE TO HAVE LEVERS AND TOOLS TO DEAL WITH ALL THOSE ENVIRONMENTS. WHILST THE SUN IS SHINING, WE WILL MAKE HAY AND PUT IT IN THE SHED. THIS IS A PRETTY STRONG, HEALTHY ENVIRONMENT RIGHT NOW. AVRIL: IT'S A GREAT BACKDROP TO BEGIN. STEWART, THANK YOU SO MUCH. THANK YOU TO BLOOMBERG'S PAUL ALLEN. MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪ SHERY: HKEX CEO SAYING THAT THERE'S -- SHE'S CONFIDENCE THAT THE IPO BOOM WILL CONTINUE THANKS TO INTERNATIONAL INVESTORS RENEWED APPETITE FOR CHINESE ASSETS. ALSO TOLD US HOW THE EXCHANGE PLANS TO SUSTAIN ITS STRONG PERFORMANCE FOLLOWING A RECORD PROFIT IN THE SECOND QUARTER. > > WHAT REALLY STANDS OUT FOR ME FOR THIS QUARTER IS THE FACT THAT IT'S RIDING ON A PRETTY SUSTAINED MOMENTUM. IF YOU LOOK AT OUR RESULTS, THIS IS ACTUALLY ANOTHER SET OF RECORD HALF YEARLY RESULTS. WE DELIVER PRETTY STRONG SET ALREADY FOR THE SECOND HALF OF 2024. GRADUALLY WE SEE A RETURN OF INTEREST FROM INTERNATIONAL INVESTORS AND THEY WANT TO AGAIN LOOK FOR OPPORTUNITIES TO DEPLOY MORE CAPITAL TO THIS PART OF THE WORLD. > > THE KEY QUESTION IS, IS IT SUSTAINABLE? > > WE SAW THE MOMENTUM STARTING IN THE SECOND HALF OF LAST YEAR. SO FAR IT'S BEEN SUSTAINING QUITE WELL. INTERNATIONAL INVESTORS ARE REALLY FOCUSING ON CHINA ASSET. AS THEY TRY TO COME BACK TO TREASURE HUNT, IT'S A VERY GOOD THING THAT WE HAVE EQUALLY A ROBUST PIPELINE TO MATCH THE APPETITE. WE CURRENTLY HAVE OVER 200 COMPANIES ALREADY HAVING FILED THEIR APPLICATIONS. IN FACT, ON A DAILY BASIS I'M SPEAKING TO A LOT MORE. SO I THINK WITH THE BACKDROP OF REALLY THE INTEREST RETURNING IN EARNEST AS WELL AS ALL OF THESE VERY EXCITING INVESTMENT OPPORTUNITIES COMING ONLINE, I DO HOPE THAT THE MOMENTUM CAN CARRY ON. > > HOW CONFIDENT ARE YOU THAT HONG KONG CAN RECLAIM THE NUMBER ONE IPO VENUE THIS YEAR? > > AT THE MOMENT, WE ARE IN A GOOD POSITION. WE DO HAVE THE PIPELINE TO HELP US DELIVER AND STAY UP THERE. TO ME, THE MORE IMPORTANT THING REALLY IS TO MAKE SURE THAT WE ARE ABLE TO SUPPORT THE FUNDRAISING MEETS OF THESE COMPANIES. THIS YEAR I KEEP TALKING ABOUT THE IPO PIPELINE. WE ALSO NEED TO LOOK AT THE FUNDRAISING WHICH IN FACT HAS RAISED MORE MONEY THAN THE IPO PROCEEDS. YEAR TO DATE, WE HAVE RAISED 16 BILLION U.S. DOLLARS BY WAY OF IPO'S. WE HAVE ACTUALLY MORE THAN 40 BILLION U.S. DOLLARS RAISED BY COMPANIES ALREADY LISTED ON OUR EXCHANGE. SO LONG AS WE CONTINUE TO SUPPORT THE FUNDRAISING NEEDS OF THESE COMPANIES, WE CONTINUE TO IMPROVE OUR FRAMEWORK. > > ARE YOU DOING A LOT OF MARKETING OUR COMPANY STARTING TO COME TO YOU? > > COMPANIES SAW HOW WELL WE'VE DONE IN THE IPO SPACE. ON AVERAGE, TWO TO THREE COMPANIES PER DAY. I WANT TO EXPAND THE UNIVERSE A LITTLE BIT. I THINK IT'S ENCOURAGING IN THE PAST FEW MONTHS THAT WE HAVE SEEN AN INCREASED APPETITE OF COMPANIES BEYOND JUST THE MAINLAND CHINA WANTING TO PICK HONG KONG AS THEIR LISTING VENUE. YOUR TO DATE, WE'VE LISTED COMPANIES FROM THAILAND, SINGAPORE, AND THERE ARE MORE IN THE PIPELINE. I WILL CERTAINLY DO MORE IN TERMS OF THIS MARKETING ACTIVITY. > > THERE ARE THOSE OUT THERE THAT CALL THIS RECOVERY YOU ARE SEEING IS SOMETHING THAT'S MADE IN CHINA. WHAT YOU ARE SEEING IN TERMS OF THE PIPELINE HAS BEEN DRIVEN BY GOVERNMENT POLICY, GEOPOLITICS. > > I DON'T THINK I'M SURPRISED. JUST CONSIDERING THAT CHINA IS THE SECOND LARGEST ECONOMY OF THE WORLD, IS CAPABLE OF PRODUCING SO MANY EXCITING COMPANIES WHICH INVESTORS AROUND THE WORLD WANT TO INVEST IN. SO TO ME, IT'S NATURAL AND TOTALLY UNDERSTANDABLE. THIS MADE IN CHINA PHENOMENA. THAT SAID, GIVEN THAT HONG KONG IS AN INTERNATIONAL FINANCIAL CENTER, AND WE STAND IN THE MIDDLE AS A SUPER CONTACT -- SUPER CONNECTOR, WHAT I WOULD LIKE TO SEE IS TO REALLY CONTINUE BRINGING MORE PARTICIPANTS INTO THE UNIVERSE. AVRIL: SPEAKING WITH THE CHINA SHOW COANCHOR YVONNE MAN. AS THE CEO WAS JUST SAYING, THERE CONTINUES TO BE INVESTOR INTEREST GLOBALLY BACK INTO CHINESE ASSETS AND WE CONTINUE TO SEE HONG KONG SHARES OUTPERFORMING THE S & P 500 THIS YEAR. MAINLAND LISTED SHARES ARE ACTUALLY POISED FOR FOUR STRAIGHT MONTHS OF GAINS AS WELL. LET'S BRING IN OUR CHINA CORRESPONDENT MINMIN LOW. SO, WHILE -- WHAT ARE YOU SEEING IN TERMS OF THE MOMENTUM? CAN THIS CONTINUE FOR CHINESE MARKETS? > > YEAH. THE GOLDEN DRAGON POINTING UP TODAY WHICH IS GOING AGAINST THE GREEN OF THE TECH DRIVEN LOSSES THAT WE SAW IN THE U.S.. ALSO THE BROADER SENTIMENT IN ASIA AS WELL. IT'S INTERESTING AS YOU SEE THERE'S BEEN THIS EXUBERANT IN THE CHINESE MARKETS. IT'S A DIVERSIONS WHAT WE ARE SEEING IN THE CAPITAL MARKETS VERSUS THE REAL ECONOMY. LAST WEEK HE HAD A SLEW OF DATA FROM THE ACTIVITY DATA TO THE HOUSING DATA TO THE CREDIT DATA. IT SAID CONFIDENCE IN THE PRIVATE SECTOR THAT'S KEEPING PEOPLE FROM TAKING OUT MORE LOANS. ALL OF LIQUIDITY IS FLOWING INTO EQUITY MARKETS BECAUSE THE BONDS ARE NOT GIVING YOU VERY HIGH YIELDS. ONE SIGN POINTING TO A HEALTHY VALUE HERE IS THAT WE ARE SEEING THIS BROADENING OUT OF THE RALLY ON THE SHANGHAI COMBINATION STOCK INDEXES. IF YOU SEE THE RALLY YESTERDAY, 2000 OUT OF THE 5700 COMPANIES ON BOTH INDEXES PARTICIPATING IN THE RALLY. IT SHOWS YOU THAT IT'S GONE BEYOND THE USUAL FAVORITES LIKE THE DIVIDEND, HIGH DIVIDEND PLAYS LIKE THE BANKING SECTOR AS WELL AS THE AI BIOTECH SECTOR. BECAUSE THIS HAS BEEN SUCH A SLOW RESURGENCE THAT WE ARE SEEING IN THE CHINESE STOCK MARKET, IT'S DIFFERENT FROM THE FAST BOOM AND BUST CYCLE. THERE IS STILL LINKS FOR THIS RALLY TO CONTINUE RUNNING. SHERY: THE EARNINGS SEASON COULD BE ANOTHER CATALYST. WE HAVE THE STREAMING COMPANY REPORTING TODAY. WHAT ARE WE EXPECTING? MINMIN: 11% GROWTH IN REVENUE AS WELL AS NET INCOME. INVESTORS WILL BE MOST CLOSELY WATCHING THE OUTLOOK ON CLING WHICH IS THIS TEXT TO VIDEO AI VIDEO GENERATION. IT HAS EXCEEDED ANALYST EXPECTATIONS IN TERMS OF ITS ABILITY TO MONETIZE THE COMPANY PROVIDED GUIDANCE OF ABOUT 100 MILLION U.S. DOLLARS IN REVENUE THIS YEAR. CITIGROUP IS SAYING THAT THEY ARE SEEING POTENTIAL UPSIDE TO THAT BECAUSE THIS IS SEEN AS A STRONG VENDOR AGAINST THE OTHER SIMILAR TOOLS OFFERED BY THE LIKES OF GOOGLE OR BYTEDANCE BECAUSE IT'S PRICED COMPETITIVELY. HIGH-QUALITY PRODUCT. WHEN YOU LOOK AT ITS OTHER SERVICES INCLUDING AD REVENUE, THAT'S WHERE IT BE FACING HEADWINDS BECAUSE OF THE SLOW DOWN IN THE ECONOMY. IT COULD BE SUPPORTED BY THE GOVERNMENT SUBSIDIES. THAT COULD HELP LIFT E-COMMERCE EARNINGS. A LOT TO WATCH BUT CERTAINLY INVESTORS WILL BE MOST HIGHLY ANTICIPATING THE NUMBERS FROM THE CLING PLATFORM. SHERY: MINMIN LOW THERE. BUSY EARNINGS SEASON IN CHINA. WE WILL BE SPEAKING WITH THE CEO AS WELL AFTER THE RESULTS. CATCH THOSE EXTRUSIVE INTERVIEWS AT THE TIMES SHOWN ON YOUR SCREEN RIGHT THERE. IT'S THIS IS BLOOMBERG. ♪ SHERY: HERE ARE SOME OF THE STOCKS TO WATCH WHEN MARKETS OPEN IN HONG KONG AND MAINLAND CHINA. BAIDU AND LABEOUF TRACKING THOSE SHARES AFTER THEY REPORTED EARNINGS ON WEDNESDAY IN TERMS OF WHAT WE ARE WATCHING AFTER SHARES ROSE FOLLOWING THE LAUNCH OF NEW MANY LIBERAL DOLLS. CHIP STOCKS REMAIN IN FOCUS AFTER THE ROUTING TECH STOCKS CONTINUED ON WALL STREET. LET'S TAKE A CLOSER LOOK AT SOME OF THEM AS WELL INCLUDING THE LIKES OF SOFTBANK'S, SAMSUNG, SK HYNIX. INVESTORS DIGESTING THE PLAN TO INVEST IN INTEL. DOES THIS COME AGAINST THE BACKDROP OF SOME POLITICAL NOISE? IS THIS MAKING BUSINESS SENSE FOR THE COMPANY? IT'S EXTENDING ALREADY THE 6% SLIDE FROM A DAY AGO INTO TODAY'S SESSION. SAMSUNG IS ABOUT OF -- A BIT OF AN OUT LAYER. SK HYNIX GOING THE OTHER DIRECTION. THERE'S BEEN TRADER CHATTER ABOUT HOW IT'S COMING CLOSER TO GETTING ITS APPROVAL FROM NVIDIA ON HIGH-BANDWIDTH MEMORY CHIPS. SHERY: THAT WILL MAKE A BIG DIFFERENCE WHEN IT COMES TO REALLY THAT PROGRESS IN THE ADVANCED CHIP SECTOR FOR ARTIFICIAL INTELLIGENCE. BROAD PRESSURE ON THE TECH SECTOR. THE NASDAQ 100 AND THE OVERNIGHT SESSION FALLING FOR A SECOND SESSION. MAGNIFICENT 7 SEEING THE LONGEST LOSING STREAK SINCE APRIL. U.S. FUTURES DOWN 2/10 OF 1%. CHINA 850 FUTURES CLOSING HIGHER BY 4/10 OF 1%. CHINA'S 30 YEAR DEAL RISING TO THE HIGHEST SINCE DECEMBER. KEEP AN EYE ON THE SUPERLONG YIELDS HERE IN JAPAN AS WELL. 30 YEAR YIELD, CLOSE TO RECORD HIGHS. FISCAL CONCERNS AROUND THE WORLD. THAT'S IT FROM THE ASIA TRAY. MARKETS COVERAGE CONTINUES AS WE LOOK AHEAD TO THE START OF TRADE IN HONG KONG, SHANGHAI, SHENZHEN. THIS IS BLOOMBERG. ♪

No schedule data available.

BTV Channel FinderWatch BTV in your area

Caution Across Markets Ahead of Powell Speech | Bloomberg: The Asia Trade, 8/21/25

"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 and Sydney with Shery Ahn and Haidi Stroud-Watts, 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