November 17, 2025 • 16 mins
US equities retreated ahead of Nvidia earnings. Matt Sallee, Executive Vice President, Head of Investments at Tortoise Capital shares what he's expecting across the AI trade.
Bitcoin drops sharply from its October high. Kelvin Tay, Regional CIO for UBS Global Wealth Management, discusses what's driving the price action of markets in the Asia Pacifc.
Plus, 'Baby Shark' creator Pinkfong's IPO in South Korea. Shares jumped as much as 62% on their trading debut as investors snapped up the studio behind YouTube’s most-viewed jingle.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio News.
Speaker 2 (00:10):
Welcome to the Daybreak Asia podcast. I'm Doug Krisner. In Japan,
Prime Minister Takeiichi is facing a diplomatic test after angering
China with her remarks about Tokyo's position on the Taiwan issue. Now,
China's Foreign ministry demanded the Takichi retract her remarks. However,
she's refused, and that's created a bit of a standoff
(00:32):
between Japan and its largest trading partner, and it may
weigh on the Japanese economy, particularly if China were to
impose sanctions or even cut supplies of critical minerals. Earlier
today in New York trading, the yen broke to the
weak side of one fifty five against the dollar. And
in a moment we'll take a closer look at the
macro across the Eight pac But we begin here in
(00:54):
the States, where the equity market retreated ahead of the
earnings from Nvidia do after the bell on Wednesday. There
was also some anxiety tied to the release of two
readings on the US labor market to Thursday. Joining me
now is Matt Sale. He is Executive EP also head
of Investments at Tortoise Capital, joining from Kansas City. Matt,
(01:15):
thank you. We've got these earnings that will drop Wednesday
after the bell from Nvidia. As you know, we've seen
a bit of doubt here as to the sustainability of
this AI cap X spend, and I think we can
agree that good numbers from in Vidia would go a
long way to quell that uncertainty. Are the Nvidia earnings
a big question marked for you or do you feel
(01:37):
a level of confidence that the company will deliver as
it has in the past.
Speaker 3 (01:42):
We think demand continues to be very strong for their chips,
so not a concern for us. I think the market's
been a little skittish recently obviously around AI. I'll tell
you we do not think this is a bubble by
any stretch. We've been really focused on how much the
hyperscalers are spending. They're going to spend and big four
three hundred and fifty billion dollars this year, a big
(02:04):
year every year, a big quarter over quarter, and it's
only going to continue to grow. An our view, and
we think there's you know, X, we are at the
very early stages of AI adoption in our country. It's
a very small percentage you're actually using AI effectively.
Speaker 2 (02:20):
So we got news today about Amazon coming to market
with about fifteen billion in debt. We know that the
hyperscalers more recently have been financing a lot of this
build out, not with the cash funded model predominantly, but
they're making greater use of debt vehicles. Is that a
concern to you at all?
Speaker 3 (02:40):
I mean, these companies have a higher credit rating than
the US government, So the short answer is absolutely not.
If you look at the free cash flow generation again
of the Big Four, the numbers are literally massive. So
you know, I think it makes sense to issue some debt.
It's cheap debt, but I think they don't necessarily need
to by any stretch unless spending really ramps up. But there,
(03:03):
you know, we're talking hundreds of billions of dollars of
free cash flow projected next year across the Big Four.
So not a concern for US. Financial is not a
concern for US at all.
Speaker 2 (03:13):
We know the earning story as it relates to some
of these AI behemoths has been a driving factor in
pushing equity prices higher. I think it's fair to say
another part of the story is expectations that we're going
to get a lot more in the way of FED easing.
We heard today from FED Governor Chris Waller, who repeated
his view that the FED should cut the policy rate
(03:34):
by twenty five basis points in December. He's squarely focused
on the weakness in the labor market. Would you agree
with that approach to monetary policy right now?
Speaker 3 (03:44):
I think we'll see a cut either in December or
in the next two meetings. We're very likely to see
a cut in our view. Frankly, I know the job
market has shown some signs of weakness, but with all
the AI spending, it's just very hard for us to
foresee a recession just given the amount of economic activity
tied to the capital spending side. So there will be
(04:07):
some you know. I know for recent college grads it's
a little harder to get those entry level jobs, I
think partially because of AI. So something we're watching. But frankly,
we don't see the economies cool at anytime anytime soon.
Speaker 2 (04:20):
There's been a lot of change in the labor market,
as you well know. Much of it is structural, with
immigration policy changing, and I was struck by some data
coming out of the Cleveland Fed notices of impending mass
layoffs by US companies surging in the month of October
to among the highest level on record. So the Cleveland
FED found that some thirty nine thousand Americans were given
(04:44):
advance notice last month, as required under the Warren Act.
So there's something going on in the labor market. How
it's deteriorating. Do you think that we don't have complete
visibility into the structural shift or the structural changes that
are producing these mounting job losses.
Speaker 3 (05:02):
It's hard to see who's not you know, what industry
is not going to be disrupted by AI. But clearly,
you know, the early signs were the Challenger layoffs, factory workers.
There's a huge number increase in layoffs. So I think,
you know, there's some very obvious industries that will be
impacted or job types that will be impacted. But I
(05:26):
think we're just at the very early stages of understanding what,
you know, what this all looks like. I mean, at Tortoise,
we have not had to hire as many analysts historically
we would. That's just you know, one kind of real
life anecdote. You know, we're just we've been able to
be more efficient. So again I take every industry going
to be disrupted to some degree.
Speaker 2 (05:46):
How are you approaching an investment strategy these days? Are
you a little conservative now given some of the lofty
valuations that are attached to the AI trade, are you
being a little defensive? Are you participating in some of
the rotation that we have seen lately away from let's
say big cap tech and into things like healthcare or
(06:06):
even the financials.
Speaker 3 (06:08):
Yeah, basically all we do is energy and infrastructure. So
what we have done is the energy sector has not
had a huge year, but it is a big beneficiary
from surging demand, whether electricity or the natural gas to
produce the electricity, those names are barely up this year.
If you look at the energy infrastructure companies, utilities have
(06:28):
done a little better, so we see good value there,
especially relative to the growth. And then on the you
know kind of picks and shovels of AI, so think
cooling infrastructure, the data centers themselves, you know, any number
of the digital infrastructure. Those names do have relatively high
priced earnings ratios, but the growth is massive, so they're
(06:50):
paid ratio is actually pretty attractive. You mentioned in Vidia earlier,
and you know, I think there's a consensus view that
it's overvalued if you look at the growth. I mean,
it's not expensive relative to the growth, assuming that growth continues,
which we believe it will.
Speaker 2 (07:07):
I'm trying to understand investors sentiment visa VI bitcoin. I
know we're down sharply from that October high of around
one hundred and twenty six thousand, right around ninety two
grand at the moment. Do you see bitcoin and the
volatility in that trade as impacting broader risk asset psychology.
Speaker 3 (07:28):
I think it's absolutely, you know, whether it's causing it
or a symptom, probably more so the latter. We do. Actually,
we like the bitcoin miners. We don't invest in bitcoin directly,
but we like the minors because they have access to electricity.
They've built out their quote unquote data centers you know,
(07:49):
gosh five years ago and have already have access to electricity.
They're repurposing those now to provide high performance compute and
speed to market with electricity. That's the game factor, and
we see a tremendous value proposition here. We think these
companies are totally going to re rate from trading at
very low multiples to trading it. You know, if they
(08:10):
trade like the traditional data centers. You know, these are
massive returns that we can see. So yeah, we don't
directly invest in bitcoin, but we do like the miners,
and I think it's just a function of kind of
you know, recent risk off trade in terms of Bitcoin
being off.
Speaker 2 (08:26):
Okay, we'll see where we go from here. Matt, always
a pleasure. Thank you so very much. Matt Sali from
Tortoise Capital. Matt is executive VP also head of Investments,
joining from Kansas City. Here on the Daybreak Asia podcast.
(08:47):
Welcome back to the Daybreak Asia Podcast. I'm Doug Christner.
Stocks across the Asia Pacific are feeling a bit of
pressure after a decline in US equities. We had the
S and P five hundred down about nine tenths of
one percent, closing below it's fifty day moving average for
the first time in one hundred and thirty nine sessions. Clearly,
risk assets are out of favor. That would very much
(09:08):
include bitcoin. It was down sharply today from its October
high of one hundred and twenty six thousand, currently around
ninety one thousand, and in that decline, bitcoin has lost
about six hundred billion dollars in total market value. According
to data compiled by Bloomberg. We got some macro analysis
earlier from Kelvin Tay. He is the regional CIO for
(09:30):
UBS Global Wealth Management. Kelvin spoke with Bloomberg TV host
Cherry On in April Hong and the conversation began with
a question on what's driving the price action of markets
in the APEC.
Speaker 4 (09:43):
I think in Asia, the dominating news right now is
basically the the tensions between China and Japan and how
that is actually playing out. But as you know, Jeo
politics have never had an overriding shadow on the equity
markets itself, and you know it tends to actually fit
up after a couple of a couple of weeks. You
don't think this is anything different. I think what's more
interesting in Asia is roughly with regards to the movement
(10:05):
where the dollar is concerned. I mean, the dollar has
actually been very strong against across the board all Asian currencies,
with perhaps the exception of the Tawanese dollar last week.
But you know, a strengthening of the dollar is usually
quite negative for Asian equities because the very strong and
viskrrelation between equities in Asia and the US dollar. So
we do need the dollar to actually have a breather
before we can actually expect the Asian equities to continue
(10:26):
to outperform this year.
Speaker 5 (10:28):
Kelvin, you were talking earlier about dollar and the rebounds
impact on Asia stocks. Is it time to perhaps relook
what we're seeing and not just Taiwan dollar, perhaps Korean
one given the possibility of intervention.
Speaker 4 (10:46):
Absolutely, I've always thought that, you know, the Asian currencies
cannot weaken too much against the dollar, not in this
kind of geopolitical landscape, because if the if the US
government imposes fifteen percent ERFFS on you and you depreciate
your currency ab about ten percent, that in some ways
actually neutralizes the impact of a terrorists. So I think
there is to some extent, you know, some caution about
(11:08):
how much the dollar can actually strengthen, or rather how
much the Asian currencies can actually weaken against the US dollar.
And I think in the crosshairs of the US Treasury
is basically the Japanese n right now. And I think
the Treasury Secretary is on quite a few occasions pointed
out that the BOJ is actually behind the curve where
inflasion targeting in Japan is concerned. So I don't think
the Japanese government, where the Ministry of Finance is concerned,
(11:29):
will allow the yen to weaken dramatically without intervening in
the market. And of course intervention could perhaps actually help
on a one week basis, but after that is basically
what the BOJA is going to do where the Japanese
n is concerned. The market believes that the BOGI will
likely hike in December, and so do we. But post
that hike itself, what is the trajectory for the next
(11:49):
six months with regards to the Japanese en. As you
can see, the Japanese and has actually weakened quite sharply
in the last two months to one fifty five right now,
and the previous law was basically about one sixty one
sixty one, so we we're not that far away from
that kind of levels. But I do think that you
would like to see BOG intervention as we move closer
to those levels.
Speaker 1 (12:09):
What can the BOJ do at this point when you
have the new pro easing Prime Minister Takaichi and also
at the same time you had the last quarter GDP
numbers actually contracting and giving her ammunition for the fact
that the economy does need support, and let me add
to that the layer of geopolitical tensions when you have
China Japan going at it, what does that mean for
(12:29):
the currency as well?
Speaker 3 (12:32):
Well?
Speaker 4 (12:33):
You do need to basically balance your fiscal policy expansion
and your monetary stillness as well. The BOG needs to
exhibit independence and not be sweet by what the Prime
Minister or the government wants them to do. That will
actually bring credibility into the Japanese and into the boj's
monetary policy stillness, right, So you don't want the BOG
(12:54):
to be in lockstock and barrel with the government itself.
You need to actually be careful and mindful of the
fact that you know, a very week and will basically
result in higher inflation for the down the road, and
you certainly don't want that coming in when the economy
is actually slowing down. Then you have a very very
tricky situation to actually try to get out from so
yes on a fiscal stimulus site. That's positive, that's pro
(13:14):
pro growth, but on the Japanese en side, you really
have to watch and make sure that the end does
not weaken dramatically further from here, because moving from one
forty six to one fifty five right now was quite
a sizeable move with regards to the Japanese and and
the dollar, right so you don't want that momentum to
actually be built into expectations. And if furthermore, if the
BOG loses credibility, then whatever they try to say to
(13:36):
try to manage the movement of the Japanese in is
actually going to follow dead years and the industry is
just basically going to you know, just going to disregard
whatever the bulga has to say and shortly en dramatically,
then we're going to be in a lot of trouble there.
Speaker 2 (13:50):
That is Calvin Tay, the regional CIO for UBS Global
Wealth Management, speaking earlier with Bloomberg TV host Sherry On
and April Hong. And before we go, let's take a
look today at the maker of the children's song Baby Shark.
This company is Pink Pong. It shares our soaring as
they debut in a South Korean ipo. But the question
(14:11):
is whether all of this is sustainable. Here is Bloomberg
Asia Stocks reporter, your King Lee.
Speaker 6 (14:17):
Yeah, so it's not just the costpaper, cost of but
overall Asian markets are down today. But the podcats of
excitement coming from the small cap costom market. From the
Pink Pong's trading the view today, it's not more than
it was actually about sixty percent at the open, so
after the IPO was at the top price, at the
(14:37):
top of the marketed range, and that probably values the
company at more than five hundred billion one that was
at the top of this marketed IPO price range. But
whether this first day pop is sustainable and that probably
depends on how the company goes ahead with the intellectual
properties and character development that are in the pipeline. So
(15:00):
there are some source of optimism because the company's baby
Shark has been it has been a blockbuster hit with
this YouTube sensation, but the company was also able to
develop the next characters such as Bebe Finn that's still popular,
and the company has been highlight highlighting during the rotio.
That is, reliance on the baby Shark has been going down,
(15:21):
So there's some Pockutsov optimism.
Speaker 2 (15:23):
That is, Bloomberg's Yuk Yung Lee shares in Pink Fong
had been up by more than sixty percent. Thanks for
listening to today's episode of the Bloomberg Daybreak Asia Edition podcast.
Each weekday, we look at the story shaping markets, finance,
and geopolitics in the Asia Pacific. You can find us
on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere
(15:45):
else you listen. Join us again tomorrow for insight on
the market moves from Hong Kong to Singapore and Australia.
I'm Doug Prisoner and this is Bloomberg
Bloomberg Audio Studios, podcasts, radio News.
Speaker 2 (00:10):
Welcome to the Daybreak Asia podcast. I'm Doug Krisner. In Japan,
Prime Minister Takeiichi is facing a diplomatic test after angering
China with her remarks about Tokyo's position on the Taiwan issue. Now,
China's Foreign ministry demanded the Takichi retract her remarks. However,
she's refused, and that's created a bit of a standoff
(00:32):
between Japan and its largest trading partner, and it may
weigh on the Japanese economy, particularly if China were to
impose sanctions or even cut supplies of critical minerals. Earlier
today in New York trading, the yen broke to the
weak side of one fifty five against the dollar. And
in a moment we'll take a closer look at the
macro across the Eight pac But we begin here in
(00:54):
the States, where the equity market retreated ahead of the
earnings from Nvidia do after the bell on Wednesday. There
was also some anxiety tied to the release of two
readings on the US labor market to Thursday. Joining me
now is Matt Sale. He is Executive EP also head
of Investments at Tortoise Capital, joining from Kansas City. Matt,
(01:15):
thank you. We've got these earnings that will drop Wednesday
after the bell from Nvidia. As you know, we've seen
a bit of doubt here as to the sustainability of
this AI cap X spend, and I think we can
agree that good numbers from in Vidia would go a
long way to quell that uncertainty. Are the Nvidia earnings
a big question marked for you or do you feel
(01:37):
a level of confidence that the company will deliver as
it has in the past.
Speaker 3 (01:42):
We think demand continues to be very strong for their chips,
so not a concern for us. I think the market's
been a little skittish recently obviously around AI. I'll tell
you we do not think this is a bubble by
any stretch. We've been really focused on how much the
hyperscalers are spending. They're going to spend and big four
three hundred and fifty billion dollars this year, a big
(02:04):
year every year, a big quarter over quarter, and it's
only going to continue to grow. An our view, and
we think there's you know, X, we are at the
very early stages of AI adoption in our country. It's
a very small percentage you're actually using AI effectively.
Speaker 2 (02:20):
So we got news today about Amazon coming to market
with about fifteen billion in debt. We know that the
hyperscalers more recently have been financing a lot of this
build out, not with the cash funded model predominantly, but
they're making greater use of debt vehicles. Is that a
concern to you at all?
Speaker 3 (02:40):
I mean, these companies have a higher credit rating than
the US government, So the short answer is absolutely not.
If you look at the free cash flow generation again
of the Big Four, the numbers are literally massive. So
you know, I think it makes sense to issue some debt.
It's cheap debt, but I think they don't necessarily need
to by any stretch unless spending really ramps up. But there,
(03:03):
you know, we're talking hundreds of billions of dollars of
free cash flow projected next year across the Big Four.
So not a concern for US. Financial is not a
concern for US at all.
Speaker 2 (03:13):
We know the earning story as it relates to some
of these AI behemoths has been a driving factor in
pushing equity prices higher. I think it's fair to say
another part of the story is expectations that we're going
to get a lot more in the way of FED easing.
We heard today from FED Governor Chris Waller, who repeated
his view that the FED should cut the policy rate
(03:34):
by twenty five basis points in December. He's squarely focused
on the weakness in the labor market. Would you agree
with that approach to monetary policy right now?
Speaker 3 (03:44):
I think we'll see a cut either in December or
in the next two meetings. We're very likely to see
a cut in our view. Frankly, I know the job
market has shown some signs of weakness, but with all
the AI spending, it's just very hard for us to
foresee a recession just given the amount of economic activity
tied to the capital spending side. So there will be
(04:07):
some you know. I know for recent college grads it's
a little harder to get those entry level jobs, I
think partially because of AI. So something we're watching. But frankly,
we don't see the economies cool at anytime anytime soon.
Speaker 2 (04:20):
There's been a lot of change in the labor market,
as you well know. Much of it is structural, with
immigration policy changing, and I was struck by some data
coming out of the Cleveland Fed notices of impending mass
layoffs by US companies surging in the month of October
to among the highest level on record. So the Cleveland
FED found that some thirty nine thousand Americans were given
(04:44):
advance notice last month, as required under the Warren Act.
So there's something going on in the labor market. How
it's deteriorating. Do you think that we don't have complete
visibility into the structural shift or the structural changes that
are producing these mounting job losses.
Speaker 3 (05:02):
It's hard to see who's not you know, what industry
is not going to be disrupted by AI. But clearly,
you know, the early signs were the Challenger layoffs, factory workers.
There's a huge number increase in layoffs. So I think,
you know, there's some very obvious industries that will be
impacted or job types that will be impacted. But I
(05:26):
think we're just at the very early stages of understanding what,
you know, what this all looks like. I mean, at Tortoise,
we have not had to hire as many analysts historically
we would. That's just you know, one kind of real
life anecdote. You know, we're just we've been able to
be more efficient. So again I take every industry going
to be disrupted to some degree.
Speaker 2 (05:46):
How are you approaching an investment strategy these days? Are
you a little conservative now given some of the lofty
valuations that are attached to the AI trade, are you
being a little defensive? Are you participating in some of
the rotation that we have seen lately away from let's
say big cap tech and into things like healthcare or
(06:06):
even the financials.
Speaker 3 (06:08):
Yeah, basically all we do is energy and infrastructure. So
what we have done is the energy sector has not
had a huge year, but it is a big beneficiary
from surging demand, whether electricity or the natural gas to
produce the electricity, those names are barely up this year.
If you look at the energy infrastructure companies, utilities have
(06:28):
done a little better, so we see good value there,
especially relative to the growth. And then on the you
know kind of picks and shovels of AI, so think
cooling infrastructure, the data centers themselves, you know, any number
of the digital infrastructure. Those names do have relatively high
priced earnings ratios, but the growth is massive, so they're
(06:50):
paid ratio is actually pretty attractive. You mentioned in Vidia earlier,
and you know, I think there's a consensus view that
it's overvalued if you look at the growth. I mean,
it's not expensive relative to the growth, assuming that growth continues,
which we believe it will.
Speaker 2 (07:07):
I'm trying to understand investors sentiment visa VI bitcoin. I
know we're down sharply from that October high of around
one hundred and twenty six thousand, right around ninety two
grand at the moment. Do you see bitcoin and the
volatility in that trade as impacting broader risk asset psychology.
Speaker 3 (07:28):
I think it's absolutely, you know, whether it's causing it
or a symptom, probably more so the latter. We do. Actually,
we like the bitcoin miners. We don't invest in bitcoin directly,
but we like the minors because they have access to electricity.
They've built out their quote unquote data centers you know,
(07:49):
gosh five years ago and have already have access to electricity.
They're repurposing those now to provide high performance compute and
speed to market with electricity. That's the game factor, and
we see a tremendous value proposition here. We think these
companies are totally going to re rate from trading at
very low multiples to trading it. You know, if they
(08:10):
trade like the traditional data centers. You know, these are
massive returns that we can see. So yeah, we don't
directly invest in bitcoin, but we do like the miners,
and I think it's just a function of kind of
you know, recent risk off trade in terms of Bitcoin
being off.
Speaker 2 (08:26):
Okay, we'll see where we go from here. Matt, always
a pleasure. Thank you so very much. Matt Sali from
Tortoise Capital. Matt is executive VP also head of Investments,
joining from Kansas City. Here on the Daybreak Asia podcast.
(08:47):
Welcome back to the Daybreak Asia Podcast. I'm Doug Christner.
Stocks across the Asia Pacific are feeling a bit of
pressure after a decline in US equities. We had the
S and P five hundred down about nine tenths of
one percent, closing below it's fifty day moving average for
the first time in one hundred and thirty nine sessions. Clearly,
risk assets are out of favor. That would very much
(09:08):
include bitcoin. It was down sharply today from its October
high of one hundred and twenty six thousand, currently around
ninety one thousand, and in that decline, bitcoin has lost
about six hundred billion dollars in total market value. According
to data compiled by Bloomberg. We got some macro analysis
earlier from Kelvin Tay. He is the regional CIO for
(09:30):
UBS Global Wealth Management. Kelvin spoke with Bloomberg TV host
Cherry On in April Hong and the conversation began with
a question on what's driving the price action of markets
in the APEC.
Speaker 4 (09:43):
I think in Asia, the dominating news right now is
basically the the tensions between China and Japan and how
that is actually playing out. But as you know, Jeo
politics have never had an overriding shadow on the equity
markets itself, and you know it tends to actually fit
up after a couple of a couple of weeks. You
don't think this is anything different. I think what's more
interesting in Asia is roughly with regards to the movement
(10:05):
where the dollar is concerned. I mean, the dollar has
actually been very strong against across the board all Asian currencies,
with perhaps the exception of the Tawanese dollar last week.
But you know, a strengthening of the dollar is usually
quite negative for Asian equities because the very strong and
viskrrelation between equities in Asia and the US dollar. So
we do need the dollar to actually have a breather
before we can actually expect the Asian equities to continue
(10:26):
to outperform this year.
Speaker 5 (10:28):
Kelvin, you were talking earlier about dollar and the rebounds
impact on Asia stocks. Is it time to perhaps relook
what we're seeing and not just Taiwan dollar, perhaps Korean
one given the possibility of intervention.
Speaker 4 (10:46):
Absolutely, I've always thought that, you know, the Asian currencies
cannot weaken too much against the dollar, not in this
kind of geopolitical landscape, because if the if the US
government imposes fifteen percent ERFFS on you and you depreciate
your currency ab about ten percent, that in some ways
actually neutralizes the impact of a terrorists. So I think
there is to some extent, you know, some caution about
(11:08):
how much the dollar can actually strengthen, or rather how
much the Asian currencies can actually weaken against the US dollar.
And I think in the crosshairs of the US Treasury
is basically the Japanese n right now. And I think
the Treasury Secretary is on quite a few occasions pointed
out that the BOJ is actually behind the curve where
inflasion targeting in Japan is concerned. So I don't think
the Japanese government, where the Ministry of Finance is concerned,
(11:29):
will allow the yen to weaken dramatically without intervening in
the market. And of course intervention could perhaps actually help
on a one week basis, but after that is basically
what the BOJA is going to do where the Japanese
n is concerned. The market believes that the BOGI will
likely hike in December, and so do we. But post
that hike itself, what is the trajectory for the next
(11:49):
six months with regards to the Japanese en. As you
can see, the Japanese and has actually weakened quite sharply
in the last two months to one fifty five right now,
and the previous law was basically about one sixty one
sixty one, so we we're not that far away from
that kind of levels. But I do think that you
would like to see BOG intervention as we move closer
to those levels.
Speaker 1 (12:09):
What can the BOJ do at this point when you
have the new pro easing Prime Minister Takaichi and also
at the same time you had the last quarter GDP
numbers actually contracting and giving her ammunition for the fact
that the economy does need support, and let me add
to that the layer of geopolitical tensions when you have
China Japan going at it, what does that mean for
(12:29):
the currency as well?
Speaker 3 (12:32):
Well?
Speaker 4 (12:33):
You do need to basically balance your fiscal policy expansion
and your monetary stillness as well. The BOG needs to
exhibit independence and not be sweet by what the Prime
Minister or the government wants them to do. That will
actually bring credibility into the Japanese and into the boj's
monetary policy stillness, right, So you don't want the BOG
(12:54):
to be in lockstock and barrel with the government itself.
You need to actually be careful and mindful of the
fact that you know, a very week and will basically
result in higher inflation for the down the road, and
you certainly don't want that coming in when the economy
is actually slowing down. Then you have a very very
tricky situation to actually try to get out from so
yes on a fiscal stimulus site. That's positive, that's pro
(13:14):
pro growth, but on the Japanese en side, you really
have to watch and make sure that the end does
not weaken dramatically further from here, because moving from one
forty six to one fifty five right now was quite
a sizeable move with regards to the Japanese and and
the dollar, right so you don't want that momentum to
actually be built into expectations. And if furthermore, if the
BOG loses credibility, then whatever they try to say to
(13:36):
try to manage the movement of the Japanese in is
actually going to follow dead years and the industry is
just basically going to you know, just going to disregard
whatever the bulga has to say and shortly en dramatically,
then we're going to be in a lot of trouble there.
Speaker 2 (13:50):
That is Calvin Tay, the regional CIO for UBS Global
Wealth Management, speaking earlier with Bloomberg TV host Sherry On
and April Hong. And before we go, let's take a
look today at the maker of the children's song Baby Shark.
This company is Pink Pong. It shares our soaring as
they debut in a South Korean ipo. But the question
(14:11):
is whether all of this is sustainable. Here is Bloomberg
Asia Stocks reporter, your King Lee.
Speaker 6 (14:17):
Yeah, so it's not just the costpaper, cost of but
overall Asian markets are down today. But the podcats of
excitement coming from the small cap costom market. From the
Pink Pong's trading the view today, it's not more than
it was actually about sixty percent at the open, so
after the IPO was at the top price, at the
(14:37):
top of the marketed range, and that probably values the
company at more than five hundred billion one that was
at the top of this marketed IPO price range. But
whether this first day pop is sustainable and that probably
depends on how the company goes ahead with the intellectual
properties and character development that are in the pipeline. So
(15:00):
there are some source of optimism because the company's baby
Shark has been it has been a blockbuster hit with
this YouTube sensation, but the company was also able to
develop the next characters such as Bebe Finn that's still popular,
and the company has been highlight highlighting during the rotio.
That is, reliance on the baby Shark has been going down,
(15:21):
So there's some Pockutsov optimism.
Speaker 2 (15:23):
That is, Bloomberg's Yuk Yung Lee shares in Pink Fong
had been up by more than sixty percent. Thanks for
listening to today's episode of the Bloomberg Daybreak Asia Edition podcast.
Each weekday, we look at the story shaping markets, finance,
and geopolitics in the Asia Pacific. You can find us
on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere
(15:45):
else you listen. Join us again tomorrow for insight on
the market moves from Hong Kong to Singapore and Australia.
I'm Doug Prisoner and this is Bloomberg
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