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This is the Bloomberg Daybreak Asia podcast. I'm Doug Prisner. You can join Brian Curtis and myself for the stories, making news and moving markets in the APAC region. You can subscribe to the show anywhere you get your podcast and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business app.

This is the Bloomberg Daybreak Asia podcast. I'm Doug Prisner. You can join Brian Curtis and myself for the stories, making news and moving markets in the APAC region. You can subscribe to the show anywhere you get your podcast and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business app.

Joining us now is Todd Walsh, chief executive officer of Alpha Cubed Investments. Todd, the US data here is painting a picture of a pretty resilient economy. If you look at the jobless claims today, durable goods GDP up at three percent. Is it starting to feel like the FED went too soon not too late?

Joining us now is Todd Walsh, chief executive officer of Alpha Cubed Investments. Todd, the US data here is painting a picture of a pretty resilient economy. If you look at the jobless claims today, durable goods GDP up at three percent. Is it starting to feel like the FED went too soon not too late?

Well, Brian and Doug, thanks for having me on.

Well, Brian and Doug, thanks for having me on.

I appreciate it.

I appreciate it.

I've been looking and our firm has been looking at the data from the vantage point of accommodation, of marginal and mixed. So we've been marginal acceleration in a lot of the data, but mixed data with positive economic data like we saw today, And if we can continue on that path, the FED might actually thread the needle and give us that fabled soft landing that we would all love to see, but I think it's a great time for all of us to collectively hold our breath. We've got a PC number coming out tomorrow, and it would not be fun to see that be an ugly number in the face of that front loaded fifty basis point cut, would it not?

I've been looking and our firm has been looking at the data from the vantage point of accommodation, of marginal and mixed. So we've been marginal acceleration in a lot of the data, but mixed data with positive economic data like we saw today, And if we can continue on that path, the FED might actually thread the needle and give us that fabled soft landing that we would all love to see, but I think it's a great time for all of us to collectively hold our breath. We've got a PC number coming out tomorrow, and it would not be fun to see that be an ugly number in the face of that front loaded fifty basis point cut, would it not?

At all? But let's assume that it's a soft reading that inflation has not accelerated to a meaningful degree. Maybe it's stubborn somewhere around two and a half percent in that vicinity. The way that you're thinking about markets right now, I'm curious as to how it's informing expectations for further rate cuts. Are we only going to get another fifty basis points, so let's say between now and the end of the year.

At all? But let's assume that it's a soft reading that inflation has not accelerated to a meaningful degree. Maybe it's stubborn somewhere around two and a half percent in that vicinity. The way that you're thinking about markets right now, I'm curious as to how it's informing expectations for further rate cuts. Are we only going to get another fifty basis points, so let's say between now and the end of the year.

So the FMC member poll looks at came out at about two more cuts fifty basis points by the end of the year, and the FED fund's futures are looking for about three. This is all data dependent, and we are optimistic and hopeful that the data will continue to come in marginal and mixed, and that the Fed's on the right path, inflation will come under control, and they can continue their rate cutting activities. Remember last November the Fed paused and stop rate raising rates. Now they've moved to an easing cycle. And if they can continue that, the value index, the dividend value index of the S and P five hundred, which has kept pace with the white hot Nasdaq one hundred since November of last year, believe it or not, should continue to have the wind at it's back. So we like a combination of boldar tech, use volatility to pick up the names that we want to pick up, and then add that dividend value trade as long as the Fed can maintain this easing activity.

So the FMC member poll looks at came out at about two more cuts fifty basis points by the end of the year, and the FED fund's futures are looking for about three. This is all data dependent, and we are optimistic and hopeful that the data will continue to come in marginal and mixed, and that the Fed's on the right path, inflation will come under control, and they can continue their rate cutting activities. Remember last November the Fed paused and stop rate raising rates. Now they've moved to an easing cycle. And if they can continue that, the value index, the dividend value index of the S and P five hundred, which has kept pace with the white hot Nasdaq one hundred since November of last year, believe it or not, should continue to have the wind at it's back. So we like a combination of boldar tech, use volatility to pick up the names that we want to pick up, and then add that dividend value trade as long as the Fed can maintain this easing activity.

Now, we've had a lot of false dawns on China, and I bring up China because I think it is having a fairly big effect on the global equity rallies that we've seen, in addition of course to the FED. But what we've seen in the past with the false dawns attached to the supply of stimulus was it never really felt like President she was behind it, like the top the top leader and faction was behind it. But it seems different now. And let's examine this because we had the Poll Up Bureau meeting where they don't normally talk about the economy, and they did, and officials have gone from wanting the property sector to weaken to ease so that it would become more affordable to people, to now actually stop going down. So I put it to you that maybe David Temper, he's one that came out and said it's to buy everything rally in China now. Maybe now, since they want to stop the property market from going down any further, maybe now is the best time to buy.

Now, we've had a lot of false dawns on China, and I bring up China because I think it is having a fairly big effect on the global equity rallies that we've seen, in addition of course to the FED. But what we've seen in the past with the false dawns attached to the supply of stimulus was it never really felt like President she was behind it, like the top the top leader and faction was behind it. But it seems different now. And let's examine this because we had the Poll Up Bureau meeting where they don't normally talk about the economy, and they did, and officials have gone from wanting the property sector to weaken to ease so that it would become more affordable to people, to now actually stop going down. So I put it to you that maybe David Temper, he's one that came out and said it's to buy everything rally in China now. Maybe now, since they want to stop the property market from going down any further, maybe now is the best time to buy.

I think your point is extremely well taken, and you have to get some historical perspective here. We've had a couple of stimulus false starts where the market tried to get traction didn't come through. Maybe we didn't the complete support of the entire political structure in China. There are a lot of beaten down money managers out there who have been trained when you see stimulus go in, it's time to get in the market. They went in, they got punched in the face, and they've been washed out. And we might be at a real tradable bottom here that has legs, and it would be nice to support continuing bull market in the US to see some get some help out of the Chinese market, which has been a terrible drag for a while, so I think you're on point there.

I think your point is extremely well taken, and you have to get some historical perspective here. We've had a couple of stimulus false starts where the market tried to get traction didn't come through. Maybe we didn't the complete support of the entire political structure in China. There are a lot of beaten down money managers out there who have been trained when you see stimulus go in, it's time to get in the market. They went in, they got punched in the face, and they've been washed out. And we might be at a real tradable bottom here that has legs, and it would be nice to support continuing bull market in the US to see some get some help out of the Chinese market, which has been a terrible drag for a while, so I think you're on point there.

So do you buy the entire broader market or do you really kind of exercise a little bit of judgment here? Are you selective with certain themes in mind?

So do you buy the entire broader market or do you really kind of exercise a little bit of judgment here? Are you selective with certain themes in mind?

I think when you're looking at a market like China, unless you're an expert in the market and really understand the dynamics of that market, and there are a lot of people out there that do, but there's a lot of people, especially in the US, that really don't. Think you're much better off buying a basket of securities and taking some of that security specific risk out of the equation.

I think when you're looking at a market like China, unless you're an expert in the market and really understand the dynamics of that market, and there are a lot of people out there that do, but there's a lot of people, especially in the US, that really don't. Think you're much better off buying a basket of securities and taking some of that security specific risk out of the equation.

And do you look to spread it around Asia as well, if you're looking to diversify not just China, but some of the countries that would benefit from the stronger China.

And do you look to spread it around Asia as well, if you're looking to diversify not just China, but some of the countries that would benefit from the stronger China.

I think right now it's a China story. Let's wait and see just a little bit if this actually has legs. We don't want to get too deeply committed to this trade and find out that it's possibly another false start. But this really has the look of leaving a lot of people in the dust. It's moving fast, it's moving broadly, and I, like I said, a lot of money managers have gotten caught short not being in the trade. So let's give us a couple of weeks before we start broadening out our exposure and seeing if this is real.

I think right now it's a China story. Let's wait and see just a little bit if this actually has legs. We don't want to get too deeply committed to this trade and find out that it's possibly another false start. But this really has the look of leaving a lot of people in the dust. It's moving fast, it's moving broadly, and I, like I said, a lot of money managers have gotten caught short not being in the trade. So let's give us a couple of weeks before we start broadening out our exposure and seeing if this is real.

So a little bit of it, maybe a short squeeze as well. Can we turn to the US election. We were just talking a moment ago about the latest Bloomberg News Morning Console poll Kamala Harris holding a razor thin lead across the swing states and what is being described as a very very tight race. How are you viewing the election as as a function of the market's behavior, Well, if.

So a little bit of it, maybe a short squeeze as well. Can we turn to the US election. We were just talking a moment ago about the latest Bloomberg News Morning Console poll Kamala Harris holding a razor thin lead across the swing states and what is being described as a very very tight race. How are you viewing the election as as a function of the market's behavior, Well, if.

It's okay with you, I'm going to absolutely wait to make my decisions about the election until after it's over. But that being said, there is a lot on the table here. There are a lot of parts of the platform that are going to go one way or the other depending on who gets elected. And I'll start with energy. Right, if we get a Harris victory, the renewable trade is probably going to come back to life. And of course the other candidate Trump, I think he has drill Baby Drill tattooed on his back as a whole separate trade. So we're gonna have some winners and losers after this election, and you're going to see the minute it gets decided, a lot of activity across those sectors that are favored or not favored depending on who wins. And we could go through the list, but we'll start putting that together as we get closer. I'm sure as we get into that election a week or two, we're going to really be tearing apart the winners and losers discussions.

It's okay with you, I'm going to absolutely wait to make my decisions about the election until after it's over. But that being said, there is a lot on the table here. There are a lot of parts of the platform that are going to go one way or the other depending on who gets elected. And I'll start with energy. Right, if we get a Harris victory, the renewable trade is probably going to come back to life. And of course the other candidate Trump, I think he has drill Baby Drill tattooed on his back as a whole separate trade. So we're gonna have some winners and losers after this election, and you're going to see the minute it gets decided, a lot of activity across those sectors that are favored or not favored depending on who wins. And we could go through the list, but we'll start putting that together as we get closer. I'm sure as we get into that election a week or two, we're going to really be tearing apart the winners and losers discussions.

I always wonder whether drill baby drill as much. I hate that expression.

I always wonder whether drill baby drill as much. I hate that expression.

He's actually a terrible expression.

He's actually a terrible expression.

Yeah. Yeah, I don't even know how it caught, caught fire and caught hold, But I'm not sure it means anything good for energy, because if you produce a lot more oil, of course the price would be down, the company's profits would probably be down. I appreciate that people are looking for less regulation. That's a slightly different part of the story.

Yeah. Yeah, I don't even know how it caught, caught fire and caught hold, But I'm not sure it means anything good for energy, because if you produce a lot more oil, of course the price would be down, the company's profits would probably be down. I appreciate that people are looking for less regulation. That's a slightly different part of the story.

Yeah, you're one hundred percent on point there. We can't just automatically assume that the energy and non renewables are going to go straight up, because we're actually dealing with a lot of issues around oil right now, aren't we. Is it signaling that maybe we're squeaking into this recession that we've been hearing about going on two years now, we've been really talking about, you know, Whens, there going to be a recession and oil's kind of flashing up. Hey, maybe we're leaning a little bit more in that way with West Texas under seventy bucks. So we'll just have to see how that pans out. But there's also a glut on that front as well, and if we get a lot of deregulation in the energy sector, that's not going to help the price of oil and probably not going to help those related stocks. But there's a lot of winners and losers that we can parse through as we get into the election actual result.

Yeah, you're one hundred percent on point there. We can't just automatically assume that the energy and non renewables are going to go straight up, because we're actually dealing with a lot of issues around oil right now, aren't we. Is it signaling that maybe we're squeaking into this recession that we've been hearing about going on two years now, we've been really talking about, you know, Whens, there going to be a recession and oil's kind of flashing up. Hey, maybe we're leaning a little bit more in that way with West Texas under seventy bucks. So we'll just have to see how that pans out. But there's also a glut on that front as well, and if we get a lot of deregulation in the energy sector, that's not going to help the price of oil and probably not going to help those related stocks. But there's a lot of winners and losers that we can parse through as we get into the election actual result.

All right, David, thank Art, Thanks very much. I appreciate the marginal and mixed references. I'll have to get my head around that during the commercial break, but it was good having you on the program. Todd Walsh, chief executive officer of Alpha Q Investments. It's a big day in Japan. The ruling party there, the LDP, will select a new leader and that leader will go on to become Prime minister. And so joining us now on the program is Tina Barrett, who is professor of political science at SOFIA University. So we have some interesting milestones that could be set here, Professor. We might have the first woman to be a leader of Japan in the modern era. We might have the youngest prime minister since well over the last forty or fifty years or so. And there are a lot of interesting issues. I mean, Japan is kind of a an inflection point here, moving away from deflation to trying to inflate your thoughts.

All right, David, thank Art, Thanks very much. I appreciate the marginal and mixed references. I'll have to get my head around that during the commercial break, but it was good having you on the program. Todd Walsh, chief executive officer of Alpha Q Investments. It's a big day in Japan. The ruling party there, the LDP, will select a new leader and that leader will go on to become Prime minister. And so joining us now on the program is Tina Barrett, who is professor of political science at SOFIA University. So we have some interesting milestones that could be set here, Professor. We might have the first woman to be a leader of Japan in the modern era. We might have the youngest prime minister since well over the last forty or fifty years or so. And there are a lot of interesting issues. I mean, Japan is kind of a an inflection point here, moving away from deflation to trying to inflate your thoughts.

So I think cosmetically it seems like Japan is being presented with quite a diverse range of candidates. As you say, the first potentially woman prime minister who styles herself on Britain's Margaret Thatcher. The candidate Koizumi, whose father himself was prime minister, represents a generational change at only forty three years of age. But as I say, he has his pedigree that's background in politics. But actually, if we sort of drill into the choices that Japanese voters are being presented with, there are some differences between the candidates. Koizumi could probably be seen as more progressive, somebody who's sort of focusing on issues that perhaps speak to his own generation. Candidate Ishiba, who is actually the sort of lead candidate among the rank and file members of the Liberal Democratic Party in the country. He tends to focus more on Japan's regions, trying to revitalize the country through more investment in places far away from Tokyo, whereas taka Ichi, the candidate who is the potential first woman prime minister, is more on the conservative wing of the party. So subtle differences, but all of them from the same political part of the party, all of them very establishment and not representing huge changes from the status quo.

So I think cosmetically it seems like Japan is being presented with quite a diverse range of candidates. As you say, the first potentially woman prime minister who styles herself on Britain's Margaret Thatcher. The candidate Koizumi, whose father himself was prime minister, represents a generational change at only forty three years of age. But as I say, he has his pedigree that's background in politics. But actually, if we sort of drill into the choices that Japanese voters are being presented with, there are some differences between the candidates. Koizumi could probably be seen as more progressive, somebody who's sort of focusing on issues that perhaps speak to his own generation. Candidate Ishiba, who is actually the sort of lead candidate among the rank and file members of the Liberal Democratic Party in the country. He tends to focus more on Japan's regions, trying to revitalize the country through more investment in places far away from Tokyo, whereas taka Ichi, the candidate who is the potential first woman prime minister, is more on the conservative wing of the party. So subtle differences, but all of them from the same political part of the party, all of them very establishment and not representing huge changes from the status quo.

So if you had to rate, let's say the economy as the key issue, or maybe it's regional security, is one more predominant than the other in this election, do you think?

So if you had to rate, let's say the economy as the key issue, or maybe it's regional security, is one more predominant than the other in this election, do you think?

I think for voters it's definitely the economy. I mean, lots of Japanese citizens are very concerned about rising prices, especially for energy and for food, which is really eating into people's monthly salaries, and salaries have been improving into because of the inflationary pressures, but not keeping pace with inflation. So I think for voters the election should be focused on the economy. However, the candidates have been relatively vague in what they've said would be their economic focus. Koizumi and Ishuba I think will probably continue with policies very similar to current Prime Minister Kishida. Koizumi in particular, has said that he really values the independence of the Bank of Japan. Taka Ishi, however, she tends to lean more towards what we might consider to be Abinomics. She's somebody who believes that there continues to need to be more inflationary pressures in Japan to boost growth. So I think if she were to become Prime Minister, we might see more clashes with the Bank of Japan, but we haven't seen a lot of detail, as I said, from any candidate.

I think for voters it's definitely the economy. I mean, lots of Japanese citizens are very concerned about rising prices, especially for energy and for food, which is really eating into people's monthly salaries, and salaries have been improving into because of the inflationary pressures, but not keeping pace with inflation. So I think for voters the election should be focused on the economy. However, the candidates have been relatively vague in what they've said would be their economic focus. Koizumi and Ishuba I think will probably continue with policies very similar to current Prime Minister Kishida. Koizumi in particular, has said that he really values the independence of the Bank of Japan. Taka Ishi, however, she tends to lean more towards what we might consider to be Abinomics. She's somebody who believes that there continues to need to be more inflationary pressures in Japan to boost growth. So I think if she were to become Prime Minister, we might see more clashes with the Bank of Japan, but we haven't seen a lot of detail, as I said, from any candidate.

And in the same way, perhaps you could run through for the three main candidates whether or not they are very different in terms of their approach to the relationship with first the United States and secondly Europe.

And in the same way, perhaps you could run through for the three main candidates whether or not they are very different in terms of their approach to the relationship with first the United States and secondly Europe.

Yeah, so I mean Europe. Unfortunately, from my perspective as someone from Europe, has not been really a very big focus of the election. I think the US, especially with the presidential election looming, is far more important. I think take Itchi probably poses the most problems potentially for the US. She is somebody who leans towards the conservative wing of the LDP. She continues to visit the controversial Yasukuni Shrine, where there are the souls of fourteen Class A War criminals enshrined, which makes visiting that establishment very controversial with Japan's Korean and Chinese neighbors. So as the US is trying to forge more regional cooperation between its allies in the Asia Pacific, I think her premiership would potentially be quite divisive and therefore would undermine that ambition. I think Koizumi probably means towards being the candidate that would most closely align with the current administration in the United States. He's been pallling around with the ambassador to Japan, going surfing together. He's somebody who speaks good English, has visited I think he was taken to the White House with Primeister Kishido when he went on a visit, so he is quite a well known figure issue. But I think somebody very focused on regional security. Has talked about wanting to see an Asian version of NATO, so I think that might fit to some degree with the US's ambitions. But he's also somebody more concerned about the regional issues and would like to see, for example, Okinawa's population having more control over what happens with US BASS, so that could potentially be an area of friction.

Yeah, so I mean Europe. Unfortunately, from my perspective as someone from Europe, has not been really a very big focus of the election. I think the US, especially with the presidential election looming, is far more important. I think take Itchi probably poses the most problems potentially for the US. She is somebody who leans towards the conservative wing of the LDP. She continues to visit the controversial Yasukuni Shrine, where there are the souls of fourteen Class A War criminals enshrined, which makes visiting that establishment very controversial with Japan's Korean and Chinese neighbors. So as the US is trying to forge more regional cooperation between its allies in the Asia Pacific, I think her premiership would potentially be quite divisive and therefore would undermine that ambition. I think Koizumi probably means towards being the candidate that would most closely align with the current administration in the United States. He's been pallling around with the ambassador to Japan, going surfing together. He's somebody who speaks good English, has visited I think he was taken to the White House with Primeister Kishido when he went on a visit, so he is quite a well known figure issue. But I think somebody very focused on regional security. Has talked about wanting to see an Asian version of NATO, so I think that might fit to some degree with the US's ambitions. But he's also somebody more concerned about the regional issues and would like to see, for example, Okinawa's population having more control over what happens with US BASS, so that could potentially be an area of friction.

So speaking of regional issues, how does China enter into this conversation?

So speaking of regional issues, how does China enter into this conversation?

So, I think China has not been really overtly discussed as part of the election campaign, but certainly in the background when security issues are raised. It's very much about the growing security threat posed by China, but also North Korea, I think as well. So all three candidates have talked about wanting to perhaps revise the constitution of Japan to give more clear status to what are currently Japan's self defense forces, perhaps allowing them to have a broader mission in terms of collective security. So those kinds of debates I think are very much focused on you thinking about the threat of China in the region, especially around the territorial disputes that Japan has with Beijing.

So, I think China has not been really overtly discussed as part of the election campaign, but certainly in the background when security issues are raised. It's very much about the growing security threat posed by China, but also North Korea, I think as well. So all three candidates have talked about wanting to perhaps revise the constitution of Japan to give more clear status to what are currently Japan's self defense forces, perhaps allowing them to have a broader mission in terms of collective security. So those kinds of debates I think are very much focused on you thinking about the threat of China in the region, especially around the territorial disputes that Japan has with Beijing.

Professor, how much support among these three candidates and who I suppose has the best grassroots support.

Professor, how much support among these three candidates and who I suppose has the best grassroots support.

Well, that's a very difficult question to answer. I mean, I don't see a lot of election fever in Tokyo this morning. ISSUEBA has the most support among the grassroots of the LDP, so he's somebody who's known his anti corruption stance. He's a very independent figure. He's been quite outspoken, calling out his own parties corruption and scandals, so I think that gives him an air of honesty that a lot of LDP members value. I think in the country also, there's a grudging respect for him, but he's not a particularly warm figure. He was described by another member of Parliament Parliament to me as being rather monk like. He likes to give sermons to his colleagues, and he is quite appreciative of his own intellect, so that makes him a somewhat prickly figure, but respected. I think taka Itchi has quite a strong following among conservative voters and members of the LDP, but I think she's very out of step with the average Japanese person these days. I think she's very much opposed to issues like women being able to have separate surnames from their husbands, which makes Japanese support Kwazumi. I think is seen as being quite charismatic, but perhaps a little too inexperienced to make a solid prime minister.

Well, that's a very difficult question to answer. I mean, I don't see a lot of election fever in Tokyo this morning. ISSUEBA has the most support among the grassroots of the LDP, so he's somebody who's known his anti corruption stance. He's a very independent figure. He's been quite outspoken, calling out his own parties corruption and scandals, so I think that gives him an air of honesty that a lot of LDP members value. I think in the country also, there's a grudging respect for him, but he's not a particularly warm figure. He was described by another member of Parliament Parliament to me as being rather monk like. He likes to give sermons to his colleagues, and he is quite appreciative of his own intellect, so that makes him a somewhat prickly figure, but respected. I think taka Itchi has quite a strong following among conservative voters and members of the LDP, but I think she's very out of step with the average Japanese person these days. I think she's very much opposed to issues like women being able to have separate surnames from their husbands, which makes Japanese support Kwazumi. I think is seen as being quite charismatic, but perhaps a little too inexperienced to make a solid prime minister.

Professor thank you, Professor Tina Barrett there from Sophia University. Joining us on the program is Rachaana Meta Regional co head fixed income Maybank Asset Management Singapore, so we can talk a little bit about fixed income and whether you like credit or some of the sovereigns here. I wanted to ask you first about what's happening in China. The added support of the polit Bureau, even President she himself, seems to bring in another dimension in China to the stimulus that they've been putting forward. It shows that officials are no longer really saying to people in the populace, we're doing what's best for you to know something more like, we want to help you now, we want to please you, we want to allay some of your anxiety. Does that make a difference to you, Rachana.

Professor thank you, Professor Tina Barrett there from Sophia University. Joining us on the program is Rachaana Meta Regional co head fixed income Maybank Asset Management Singapore, so we can talk a little bit about fixed income and whether you like credit or some of the sovereigns here. I wanted to ask you first about what's happening in China. The added support of the polit Bureau, even President she himself, seems to bring in another dimension in China to the stimulus that they've been putting forward. It shows that officials are no longer really saying to people in the populace, we're doing what's best for you to know something more like, we want to help you now, we want to please you, we want to allay some of your anxiety. Does that make a difference to you, Rachana.

Yes, absolutely impact. For so long, I was not bullish China, but I think what they've done, especially to low and middle income people to give out handouts, I think it's very very positive capitalization of banks because banks were not lending correct. So that also is a big thing, very very very big positive apart from monetary easing, because monetary easing was not doing much, but actually going and helping the real sector to build up consumption, especially giving out handouts. It's very very positive for us, and I think It is the first time we've seen China taking several measures, and really this has change the perspective even off the market and myself because I was very skeptical, but for me, actually helping low and middle income people building job prospects. And finally the property sector, they've come out and said that they're going to help not actually stop commercial construction, and in terms of alliances they're going to read use helping their property comes in developer. I think this is a holistic approach which they are doing, and I think it's going to be long term positive for Chinese consumption. China is actually moving away from manufacturing to domestic consumption economy, so I think it's a key thing for China definitely.

Yes, absolutely impact. For so long, I was not bullish China, but I think what they've done, especially to low and middle income people to give out handouts, I think it's very very positive capitalization of banks because banks were not lending correct. So that also is a big thing, very very very big positive apart from monetary easing, because monetary easing was not doing much, but actually going and helping the real sector to build up consumption, especially giving out handouts. It's very very positive for us, and I think It is the first time we've seen China taking several measures, and really this has change the perspective even off the market and myself because I was very skeptical, but for me, actually helping low and middle income people building job prospects. And finally the property sector, they've come out and said that they're going to help not actually stop commercial construction, and in terms of alliances they're going to read use helping their property comes in developer. I think this is a holistic approach which they are doing, and I think it's going to be long term positive for Chinese consumption. China is actually moving away from manufacturing to domestic consumption economy, so I think it's a key thing for China definitely.

I think that's an important point that you just raised their year of the view that this is sustainable over the long term, that this is not something that's flash in the pan, that's going to be temporary. There's this burst of enthusiasm. Markets respond with a lot of confidence. They're moving to the upside in major ways. But I'm wondering, is there the risk that this is not sustainable, that it that it that it fails to deliver on some kind of longer term sustainable path. You don't seem to be of that opinion.

I think that's an important point that you just raised their year of the view that this is sustainable over the long term, that this is not something that's flash in the pan, that's going to be temporary. There's this burst of enthusiasm. Markets respond with a lot of confidence. They're moving to the upside in major ways. But I'm wondering, is there the risk that this is not sustainable, that it that it that it fails to deliver on some kind of longer term sustainable path. You don't seem to be of that opinion.

Yeah, definitely. See, we still have geopolitics coming correct. US elections are coming, so there'd be a lot of voltility going forward. But I do believe there is China is in the right partn that continued to do this.

Yeah, definitely. See, we still have geopolitics coming correct. US elections are coming, so there'd be a lot of voltility going forward. But I do believe there is China is in the right partn that continued to do this.

From a medium term.

From a medium term.

Perspective, I think it should be positive for China and both. But yes, you're right, do my personal views because ye're actually now tackling the sector they realized it, especially the youth employment and helping the low and middle income families. You see how Singapore is be successful because they've given a kandom to all the people which are low middle income. So once you start giving I'm actually targeting those sectors medium come it should be continue this policy. So my views is they will continue this policy. Barring geopratical it should be medium term.

Perspective, I think it should be positive for China and both. But yes, you're right, do my personal views because ye're actually now tackling the sector they realized it, especially the youth employment and helping the low and middle income families. You see how Singapore is be successful because they've given a kandom to all the people which are low middle income. So once you start giving I'm actually targeting those sectors medium come it should be continue this policy. So my views is they will continue this policy. Barring geopratical it should be medium term.

Bullished with China, Yeah, for me, it's the intent that is the most important. I didn't feel for the past three years that the top leaders in China really had the intent to mollify markets to swing things around, but it seems now that that's being expressed. So I wonder if we can apply that to some of the geopolitical issues that China has obviously kind of in a battle with Europe now and has been with the United States for some time. Do you note any change in attitude on that front, and is that something that would make credit in China look more attractive.

Bullished with China, Yeah, for me, it's the intent that is the most important. I didn't feel for the past three years that the top leaders in China really had the intent to mollify markets to swing things around, but it seems now that that's being expressed. So I wonder if we can apply that to some of the geopolitical issues that China has obviously kind of in a battle with Europe now and has been with the United States for some time. Do you note any change in attitude on that front, and is that something that would make credit in China look more attractive.

I think it's not easy. The in terms of geopeltical it is because of your selections and in terms of charryfishes. We will have that going forward. And I think if you look at actually in terms of the Chinese exposed to year is already slowing down, and I think the Asian exposed within China is increasing, that they fold that way. So I feel that over the next five to ten years, if China moves away from a lot of manufacturing and you know, like focusing on nation growth and also Middle East is becoming part now with China actually know some of the investments are coming that I think it can be sustainable from a medium term perspective. But of course the consumption is the key China, and for me, if they move away at least currently the economy is more dependent exports. As China evolves, it takes time correct for any economy to move away from manufacturing from an export oriented to consumption. But if they continue to do the right thing, I think they positive.

I think it's not easy. The in terms of geopeltical it is because of your selections and in terms of charryfishes. We will have that going forward. And I think if you look at actually in terms of the Chinese exposed to year is already slowing down, and I think the Asian exposed within China is increasing, that they fold that way. So I feel that over the next five to ten years, if China moves away from a lot of manufacturing and you know, like focusing on nation growth and also Middle East is becoming part now with China actually know some of the investments are coming that I think it can be sustainable from a medium term perspective. But of course the consumption is the key China, and for me, if they move away at least currently the economy is more dependent exports. As China evolves, it takes time correct for any economy to move away from manufacturing from an export oriented to consumption. But if they continue to do the right thing, I think they positive.

Well, you mentioned geopolitical risk terrors obviously on that list, but I'm more curious about your reaction to what you're hearing these days from the FED and the fact that we are now we're seeing the FED embark on a path of policy easing. How does that affect credit where you are bra Chana very quickly?

Well, you mentioned geopolitical risk terrors obviously on that list, but I'm more curious about your reaction to what you're hearing these days from the FED and the fact that we are now we're seeing the FED embark on a path of policy easing. How does that affect credit where you are bra Chana very quickly?

Actually, it is very positive for especially Asian local currency, government bonds and credits, because we're all waiting for to cut threats. Generally, yours interest is too much higher than THESI is interested. A interesting difficure was a key factor for our currencies to beaken over the last couple of years. So finally we have seen a lot of ancient currencies friends, a lot of asient a lot of money is throwing into Asia. So it's a very very positive for especially Asian and emergy market as well. Then starts cutting baits. So I think it's a very key important to think for us to be positive on Asian credits and Asian currency, so especially on the user credit. Of course it depends on newest tragedies, but I think the supply is limited, so overall is positive.

Actually, it is very positive for especially Asian local currency, government bonds and credits, because we're all waiting for to cut threats. Generally, yours interest is too much higher than THESI is interested. A interesting difficure was a key factor for our currencies to beaken over the last couple of years. So finally we have seen a lot of ancient currencies friends, a lot of asient a lot of money is throwing into Asia. So it's a very very positive for especially Asian and emergy market as well. Then starts cutting baits. So I think it's a very key important to think for us to be positive on Asian credits and Asian currency, so especially on the user credit. Of course it depends on newest tragedies, but I think the supply is limited, so overall is positive.

Okay, Rashana, thank you for being with us. Rajana Meta, regional co head Fixed Income at Maybank Asset Management. She expects the dollar to weaken over the medium term and likes Southeast Asian currencies for the current strategy.

Okay, Rashana, thank you for being with us. Rajana Meta, regional co head Fixed Income at Maybank Asset Management. She expects the dollar to weaken over the medium term and likes Southeast Asian currencies for the current strategy.

Joining US now. Jody Schneider, Bloomberg Political News director for Bloomberg TV and Radio. Jody, It's always a pleasure. I think it's fair to say, and I want to point out that the lead that we are assigning to a Kamala Harris in these individual states still within the statistical margin of error about forty days until the election. Can we expect a lot more volatility? Can these numbers shift? Do you think dramatically as we get closer to the November election.

Joining US now. Jody Schneider, Bloomberg Political News director for Bloomberg TV and Radio. Jody, It's always a pleasure. I think it's fair to say, and I want to point out that the lead that we are assigning to a Kamala Harris in these individual states still within the statistical margin of error about forty days until the election. Can we expect a lot more volatility? Can these numbers shift? Do you think dramatically as we get closer to the November election.

Well, one of the things I think so interesting about the poll is even though she has neutralized his advantage, it's still extraordinarily close and one swing state one uh one, uh, you know, very narrow swing state would only say a handful of Electoral College votes couldn't make the difference.

Well, one of the things I think so interesting about the poll is even though she has neutralized his advantage, it's still extraordinarily close and one swing state one uh one, uh, you know, very narrow swing state would only say a handful of Electoral College votes couldn't make the difference.

Uh.

Uh.

You know, while she's neutralized advantage, we are still in the margin of error here, So I think a big takeaway from this is that it's really really close. The other one thing is since neutralized his advantage, which is, you know, since the last poll, we are continuing to see that trajectory occur.

You know, while she's neutralized advantage, we are still in the margin of error here, So I think a big takeaway from this is that it's really really close. The other one thing is since neutralized his advantage, which is, you know, since the last poll, we are continuing to see that trajectory occur.

I found it interesting that it seems like Harris has edged ahead on handling of the economy, and that's something that President Trump prior to this, had had an advantage on.

I found it interesting that it seems like Harris has edged ahead on handling of the economy, and that's something that President Trump prior to this, had had an advantage on.

Yes, and you're right, that had been one of her vulnerabilities. That and the border, and she has seemed to really cut down his big lead in that area. One of the ways is sort of this middle class real populism, almost to the middle class theme that she has really embarked upon in recent weeks. Some of this about trying to take on those who are into that are price gouging, for instance, talking about middle class breaks rather than for big businesses. So I think that is having an effect. Also, the federal reserves. Finally, lowering of interest rates does seem to have some slight effect as well. This poll went we went into the field on this pool as that was occurring as the Federal Reserve had taken the faction last week.

Yes, and you're right, that had been one of her vulnerabilities. That and the border, and she has seemed to really cut down his big lead in that area. One of the ways is sort of this middle class real populism, almost to the middle class theme that she has really embarked upon in recent weeks. Some of this about trying to take on those who are into that are price gouging, for instance, talking about middle class breaks rather than for big businesses. So I think that is having an effect. Also, the federal reserves. Finally, lowering of interest rates does seem to have some slight effect as well. This poll went we went into the field on this pool as that was occurring as the Federal Reserve had taken the faction last week.

So is Kamala Harris heading to the southern border in the States tomorrow Friday, US Is that right?

So is Kamala Harris heading to the southern border in the States tomorrow Friday, US Is that right?

Yeah, She's going to Arizona tomorrow and she's going to be a Nevada over the weekend. This seems to be a week that she is kind of almost leaning into her vulnerabilities, if you will. She taught She came out with an eighty two page economic report yesterday and spoke about the economy at length, something that you know she's been so for not kind of honing in on enough. Tomorrow she's going to the border and obviously going to talk about that. That is someplace where she is still trailing Donald Trump in our poll. So she's behind fourteenth points on who do you trust on the border, which is you know, a big spling there.

Yeah, She's going to Arizona tomorrow and she's going to be a Nevada over the weekend. This seems to be a week that she is kind of almost leaning into her vulnerabilities, if you will. She taught She came out with an eighty two page economic report yesterday and spoke about the economy at length, something that you know she's been so for not kind of honing in on enough. Tomorrow she's going to the border and obviously going to talk about that. That is someplace where she is still trailing Donald Trump in our poll. So she's behind fourteenth points on who do you trust on the border, which is you know, a big spling there.

Swinging back to a more economic issue since that's the thrust of our program. It seems that Harris has made some advances on things like the federal budget and taxes. Now you would think that that would be a lot friendlier for the Republicans and for Donald Trump, but it's in this latest poll it seems like there is no particular edge for either one.

Swinging back to a more economic issue since that's the thrust of our program. It seems that Harris has made some advances on things like the federal budget and taxes. Now you would think that that would be a lot friendlier for the Republicans and for Donald Trump, but it's in this latest poll it seems like there is no particular edge for either one.

Yeah, I remember it's a swing state pole, So you're looking at people who you know, some who maybe haven't made up their minds. Others who are being kind of corded a lot, right, people keep coming to their states. You know, these are the people that everybody wants to get. So they're getting a lot of messages candidates. They're hearing from the candidates, and clearly Kamala Harris has been you know, she's been out there a lot on this message of I feel your pain, We're going to do better, and here's my focus on the middle class. And that seems to be resonating of certainly what we're saying with the poll numbers, Yeah.

Yeah, I remember it's a swing state pole, So you're looking at people who you know, some who maybe haven't made up their minds. Others who are being kind of corded a lot, right, people keep coming to their states. You know, these are the people that everybody wants to get. So they're getting a lot of messages candidates. They're hearing from the candidates, and clearly Kamala Harris has been you know, she's been out there a lot on this message of I feel your pain, We're going to do better, and here's my focus on the middle class. And that seems to be resonating of certainly what we're saying with the poll numbers, Yeah.

No doubt about that. A month out from the election and the Morning Console Bloomberg News poll indicating the vice president is or has eroded to Donald Trump's advantage on the economy, that being the headline. Thanks to Jody Schneider. Jody, It's always a pleasure. Jody is Bloomberg Political News director for Bloomberg TV and Radio.

No doubt about that. A month out from the election and the Morning Console Bloomberg News poll indicating the vice president is or has eroded to Donald Trump's advantage on the economy, that being the headline. Thanks to Jody Schneider. Jody, It's always a pleasure. Jody is Bloomberg Political News director for Bloomberg TV and Radio.

This is the Bloomberg Daybreak Asia podcast, bringing you the stories making news and moving markets in the Asia Pacific. Visit the Bloomberg Podcast channel on YouTube to get more episodes of this and other shows from Bloomberg. Subscribe to the podcast on Apple Spotify or anywhere else you listen, and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business out h

This is the Bloomberg Daybreak Asia podcast, bringing you the stories making news and moving markets in the Asia Pacific. Visit the Bloomberg Podcast channel on YouTube to get more episodes of this and other shows from Bloomberg. Subscribe to the podcast on Apple Spotify or anywhere else you listen, and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business out h