Bloomberg Markets: Asia 04/22/2024

It is almost 11 a.m.in Hong Kong and Shanghai. Welcome to Bloomberg Markets Asia.I'm Haslinda Amin. Here are the top stories.Asian stocks trade higher as focus shifts to company earnings, with some ofthe biggest names in global tech set to report this week.Emerging market bonds losing their shine with investors due to the strong dollarand rising Treasury yields. Middle East tensions are also adding tothe pain for yams. Also ahead, a little known Singaporetelehealth company becomes the hottest U.S.IPO this year with gains of more than.

500% since listing this month.We hear from its co CEO and other great guests on the show.First up, Silverdale Bond Fund CEO Sanjay Gulati with his outlook foremerging markets. Later, we have the CEO of the world'ssecond largest zinc miner and third largest silver producer.And we're talking about Hindustan Zang. Well, let's do a check in and see howmarkets are faring. Errol Hong is in The Lion City.April. What's the latest?Well, we seeing those Asian stocks staging a rebound along with U.S.futures today, highs.

And this is perhaps that relief thatIran is an escalating further after that retaliatory strike from Israel lastFriday. We are seeing the focus shifting back tothe fundamentals. Corporate earnings and U.S.data due this week, including on growth as well as the Fed's preferred gauge ofinflation. Now, for now, we're seeing the Hang Sengleading the charge 2% higher. We are also seeing the Nikkei bouncingback today in a break to the, of course, in Japan.But we're seeing bonds under pressure. Now, amid all this, the BOJ is set tohold rates on Friday.

But given how the weak yen seems to beaffecting the outlook for inflation, there are some that are bracing for theJapanese central bank to perhaps start announcing quantitative tightening.Now, we are also seeing among asset classes the stocks in the chips as wellas the tech sector. Those are really the ones that arebearing the brunt of the selling. Infotech is down today sliding,extending those declines from last Friday, said the board.And take a look at some of the movers. And this is against the backdrop ofNvidia that tumbled 10% last Friday. That was the steepest drop in fouryears.

So really begs the question whether theywill live up to these high expectations regarding the theme has.Fact that it is still among the best performers yet to date every long.Thank you. And markets will be focused on U.S.big tech earnings this week. Tesla, Microsoft, Mazda and Alphabet aredue. Here's what some of our guests have beensaying about those earnings. We're hearing it's all big tech rightnow. So some of the headlines are thisquarter is about big tech. Big tech has great balance sheets with alot of cash and very little debt.

Megacap tech companies that aregenerating extraordinary amounts of cash flow, they're still actually doing verywell. Tech is a big part of the quality storyand we still would expect for this quarter in particular for many of thosecompanies to lead on earnings growth. Look, going out for 1 to 3 quarters, Imean, it is going to start broadening out.You can't have tech be the only thing that does well if you're starting to seeeconomic weakness in other places. We're just ramping up earnings seasonnow, and I think that's going to be a good distraction for the market to beable to sort of have a look what's.

Actually going on, to see whether thelofty valuations are actually supported by the fundamentals.Big tag, big expectations. Let's get analysis with our analyststrategist Mark Cranfield in Singapore. Mark, equity markets looking to big techand match seven for an earnings boost this week.Well you know what enough to bring some Chia this Monday morning.Well, the Post survey focused very much on the risks.Coming from Treasury yields maybe reaching 5% as the biggest factor whichmay weigh on earnings in the end, the earnings season that's coming aheadhere.

They were slightly less worried aboutthe impacts that companies wouldn't come through on these wonderful promises ofwhere I was going in terms of what it mean for earnings.But of course, most of the Post survey was done before and video dropped 10%.And so as we go into these period where most of the Magnificent Seven isreporting this week and Beta itself is reporting later in the month, but peoplewill be very concerned, especially as that particular stock has become thefavorite of the retail crowd. It used to be Tesla, but it's nowswitched to home video. The turnover is very much dominated byon a day to day basis by what retail.

Punters are doing.And the investing crowd, particularly the institutional guys, should be prettywary of this because they've seen what's happened when the retail crowd turnedagainst the stock. Tesla has had a very bad of course, butthe relative news coming at Tesla is not so great, but the retail crowd haveturned their backs on Tesla. It's one of the worst performing amongthe major companies. So and video really needs to fulfill alot of promise for the whole sector, not just for itself.Otherwise, if retail investors turn against it, it could be very bad for thebroader market.

That's right.Earnings one issue. The other is the yields, whether it'llget to 5%. The Fed weighing on risk assets like bigtech. How is this going to play out with moreI guess, key US economic data coming this week?PC Case in point, yeah.Again, economist within Bloomberg, they expect the numbers to take up slightly,which will be a slight problem for the Fed because if you look back toDecember, they were really putting a lot of weight on the fact that that p Cnumber, particularly on an annualized.

Basis, was going to come in below 2% andwas going to give them the reason for starting on lowering interest rates.That's not happening. Of course, there were a couple ofdisappointing CPI reports as well. So if they get another one that comesinto the mix, really people will have to think very seriously about even do wesee any rate cuts in the third quarter? Are we talking more about the fourthquarter? So those Fed speakers have been sayingthey only see one cut this year, are starting to look like the bright guys inthe room here. So all of that is really putting moreweight on where the next dot plots are.

Going to be by the time they get toJune. It looks as though it's going to be verydifficult for the Fed to maintain an outlook where there are three interestrate cuts this year. Time will have just run out unless weget some very soft data between now and then.And don't forget, we've also got a lot of Treasury issuance this week as well.So the bond market is going to be extra volatile just because it has to absorban awful lot of issuance on top of what the expectations are in terms of thisPCI data. Marc Crenshaw and Strategist Strategies,we thank you so much for your insights.

Today.Now US growth and the Fed's preferred measure of inflation.The C as we've been talking about and you this week which will help finessebets on the timing of rate cuts. Our next guest believes now that we'vehit peak borrowing costs. Bonds are attractive with high carry.Let's bring in Sanjay Gulati, who manages over $1 billion, is founder andCEO of Silverdale Bond Fund. Sanjay, good to have you with us.I mean, where are you putting your money right now?We still see a lot of value in the 3 to 5 year duration.We see, even if there were no for the.

Rate cuts, it gives a fantastic carry.And God forbid, even if there is no rate cut or even two rate hikes, it stillgives you a positive return for the next 12 months.What makes you think we've reached peak ratesor two things? First and foremost, if you look in termsof the real interest rate, they are close to about 2% and a real interestrate about 2% is really sustainable. The other thing is, look, in terms ofthe broad prospects of the economy itself, the economy is very robust, nodoubt about it. But if you look in terms of the variousparameters underneath, I think we all.

These things sit in cracks in theeconomy. For example, we all talk about the USconsumers being robust and they are indeed.We're talking about the defaults and mortgage costs to be about 3.8% in anaverage when the current prevailing is about 7%.But what people tend to overlook is if you look in terms of, for example, thedelinquencies in cars and auto loans, we are all about the pandemic.But the key point to notice is when you talk about the bottom quartile that weare close to almost 2008. Likewise, if you look in terms ofcorporate bankruptcies in 2023, they.

Were almost equal to the previous twoyears taken together. I agree.In terms of quantum, they are nowhere near the average, but the bottom of thepyramid is indeed getting crushed. So from that point of view, we don't seea very strong reason for the Fed to go for further rate hikes abating, ofcourse, accidents. We can never know what happens in theworld scenario. Sanjay.We saw two year yields breaching 5% now just below that level.What would it take for ten year yields to get to five?And might we see that?.

Look this way in.Got it. Rather than focusing on a data pointjust from the investor point of view, it would be much better to focus on the bigpicture. So the way I would put across this orderto focus the tree is look at the forest point of view.Right? So from a big point of view, you'realready talking about born to do returns.Do we do we've been at the highest we've seen multiple decades in terms of exitpoint, in terms of what will take ten years to reach there.Of course, this key point will be in.

Terms of inflation.But look, from the inflation point of view, the key problem there is in termsof sticky service inflation and that the key point is in terms of the shelter CPIand 44% of the headline CPI comes from shelter CPI and still the CPI lags therental we do in 9 to 15 months. We already know rents have come down sothe shelter CPI would come down. Now comes the tricky portion, which isthat we are not we are not seeing any further reduction in rental rentals forquite some time and that could give a certain amount of cushion in terms ofwhere it comes down. But yes, in the immediate term, barringa certain for example, flared up in the.

In the I think though that we think theinflation is still on a downward trend. Sanjay, there's so much conviction thatyou should be putting your money to work right now.Yet we have trillions of dollars sitting on the sidelines.When do you see that mobilized and how might this play out in the market?So two points. So if you look in terms of absoluteshort term point of view, so we already seen money flowing into our fixed incomefrom our 17 continuous maturity basis. And in specific, we have already seenmoney moving from, for example, into money market mutual fund and fromequities into fixed income.

I agree there are still points.They are not now, not a tsunami coming because of that, but we are alreadyseeing system rotation where we see, for example, from the even technology stockpoint of view, we are seeing a very actively people are moving away fromthat and among others into fixed income. So what we are seeing that is veryinteresting, which is this while the headline numbers don't look verydramatic, but if you build the surface, you will notice very clear trends interms of the fact that the money is going into locking in for long term,specifically, as we see in the cases of insurance company and pension funds inparticular, we are seeing people being.

Willing to lock into moneys for for amedium to long term, which is something which we didn't see for almost a decade.Sanjay, what is the biggest what's your base case right now?See in terms of the risk I would define the risk would be two.One is a known risk, and the known risk is the lag effect of monetary policy.That's the sort of hike which we had. It is going to crack the economy.We are already seeing cracks in the bottom of the pyramid.So those are in fact going to come. So we do know it's going to come.We just do not know how fast and how much will be there.So that's something unknown risk.

The unknown risk, of course, is, forexample, in terms of geopolitics, we could be completely out of the control.Geopolitics, by definition, is very not likely.So, you know, it's very difficult to predict how it's going to happen.But here's something that you need to be careful about.Not to mention, the markets have been totally wrong when it comes to Fed ratepath this year. Sanjay, hang tight.Sanjay Gulati. Silverdale bond funds is stickingaround. Well, still to come, Startup MobileHealth Network Solutions has become this.

Year's hottest US IPO.We speak with that co-chief executive later this hour.Plus, we'll also be joined by Hindustan Zinc CEO to discuss the company's latestearnings. But first, the IMF is warning of asevere oil shock and tensions in the Middle East further escalates.I interview with France managing director Geeta Gopinath is up next.Keep it here with us. This is Bloombergand. Welcome back.The IMF's first deputy managing director says the potential for oil price shocksfrom escalating tensions in the Middle.

East would be problematic for the globaleconomy. Gopinath also discussed the outlook forU.S. interest rates and the IMF springmeetings. This is a risk we worry about.If there is a serious escalation, which means a much more wider regionalescalation than what we've seen so far, then yes, we could have a severe shock,but we're not there yet. And as you can see in terms of oilprices, you know, went up some but has come back down.We have supply excess capacity in Saudi Arabia.We have non-OPEC countries putting a lot.

More oil out on the market.So there are other sources of supply that can, you know, buffer these shocks.But if there's a large scale escalation in the Middle East, that is the problem,is that the line in the sand, $100 a barrel amount would consist of theshock. I think going up $100 a barrel would beproblematic. But even going from here to $100 abarrel would be very difficult for countries to deal with.We're still fighting the last inflation fight, which is to bring inflation backdown to target. One thing that the IMF has talkedextensively about is concern about.

Sovereign debt, in particular in theUnited States and the overhang there. What's the outcome of that?Is the fear of some sort of sort of slug flirtation or just sort of a sluggishgrowth kind of picture because of the overhang?Is it higher rates and potentially a Liz Truss moment, which I've been talkingabout and get shot at all the time in the US, but is there something like thatthat could potentially happen? You know, the U.S.is running very large deficits for a country where demand is very strong andthere is still the last mile in terms of bringing inflation down.So for all those reasons, the deficit,.

We have a deficit of 7% of GDP.It needs to be lower. And if you project out, it's going tostay at those high levels for a while. That has consequences, of course, fordebt servicing in the US. But in a sense the bigger problem is interms of spillovers to the rest of the world, because the rest of the world,when you have so much of debt being issued by the US that can crowd out thelend and borrowing from other countries, the cost of borrowing goes up and theirdebt servicing costs go up by much more. So, you know, I wouldn't say the US hasa debt sustainability problem now, but at the same time when the US isborrowing that heavily, that causes.

Rates to be that much higher.It has implications for the rest of the world and for, you know, corporationsand households in the US. How much higher I mean, could you seerates staying here between 525 and 550 for the rest of this year for even intonext year? That would not be our baseline.We would expect to see rates coming down.So, you know, right now there is a fix for getting inflation back to target.So we expect that to will come down. You know, it's going to take a littlelonger, but we expect that to come down. The question is whether it comes backdown to what we saw in the decade after.

The GFC.And there you know, right now that doesn't seem to be the case.And that was IMF First Deputy Managing Director Gita Gopinath, speaking withour very own Lisa Abramovich. Let's bring back our guest, SanjayGulati, who manages over $1 billion, is founder and CEO of Silverdale Bond Fund.Sanjay. We heard from Geeta.It is problematic. We have higher oil, higher dollar,higher yields. It is in particular problematic foremerging markets. How are you doing?What are you doing with emerging.

Markets?See the depends on which emerging market in talking about.So in terms of Asia, in emerging markets, for example in terms of India,Pakistan, Sri Lanka, etc., the net importers of oil, of course they getimpact adversely. While if you look in terms of Brazil andother countries which actually produce oil, they stand to gain marginally.So from your point of view, from the oil specific point of view, we have to seeeach emerging market differently. The other thing to keep in mind is interms of the fact that the the US interest rate cuts expectation havedogged almost from six plus in the.

Beginning of the year to now.We're talking about three minus like what we order.So to that extent, the emerging market currencies are having a basic of hit andthat is the reason why we absolutely prefer to look in terms of how currencythat from the emerging markets, which gives you the the rate of exchange upwithout the currency risk. Sanjay, let'sdelve deeper into the Indian market. Investors seem to be losing some lovewhen it comes to Indian debt, despite pumping in $9 billion on the back ofexpectations of that inclusion in the bond index.How do you play India right now?.

Yousee, India is very interesting because of two very important reasons.Number one is from the fundamental point of view, the stars are aligned forIndia. They are doing a fantastic job in termsof investing for the future, for example, in terms of creating necessaryinfrastructure and ecosystem, which will ensure that India grows at aconsiderable pace. It is indeed one of the fastest growinglarge economies in the world, and by definition, a large economy means thereare more opportunities which comes in the debt market too.Yes, today we are talking about from the.

Currency or the highest basis.India doesn't look as effective. But talking from the long term point ofview, Indian rupee definitely provides a huge diversification benefit even fromthe Hurricane sea point of view. There are numerous Indian higher limbs,which looks very attractive in the current scenario, and all such eventslike geopolitical events that provide an opportunity to pick up those thosenames. Hmm.You've been an early mover in India. I'm just wondering whether you areunwinding some of that positions right now.Not really.

So we can talk about exec positions, butlet me put this around. We are hardcore bottoms up investors.So when we see the volatility in the market increasing, we are always thereto swing and makes it a buck there. So the key point is do it do in numberone. If you're talking about Indian IG.Yes, Indian idea is indeed very tight. And we have a bit of addition there.But in terms of Indian high yield, I think it still gives you set in the avalue. Sanjay, before we let you go, it's hardto talk about India without bringing China in comparison.Other opportunities in China, I guess.

Yes.So it's it's very interesting when people talk about China not growing.Let me remind people that, look, we are still talking about China growing at5.3% for the second largest economy in the world, which growing that base isnot a joke. It's just a wonderful thing to happenspecifically when you contrast it, for example, with the euro zone and othercountries. So the key point is this people areopenly focused in terms of the property sector in China and for the rightreasons. It is indeed in shambles and it doesimpact almost 25% of GDP.

But if you look in terms of the actualBRIC make up of the way the China growth is coming from, it's coming, forexample, from the tourism, it's coming, for example, from the from the it isfrom the electrical machineries, from resources.Now, I'll give one example to you. So if you look in terms of what theChinese government has done, in terms of helping people to buy the variousmachinery out that they invested almost half a ¥5 trillion in that light,combined with the other five 6 billion, it becomes almost 1.5 trillion equal toinvestment in the property. So wonderful opportunities there.Sanjay, we have to leave it there.

Sanjay Gulati, Silverdale Bond Fund,thank you so much for being with us today.Plenty more ahead. Keep it here with us.This is the man. All China shares in the money thisMonday. We're keeping a close watch on China,big tech in particular on the back of Tencent.Well, planning a new game and it's called Dungeon and Fighter Mobile andthat's due in China on May 21st, according to Nexon.It said that in a statement the game originally released in 2022 is expectedto give Tencent a boost with its China.

Debut.Take a look at that. Tencent surging more than 4% games dofor me two on JD dot com as well as sunny optical currently up by almost 3%.Well still ahead, our exclusive interview with the co-chief executive ofSingaporean telehealth startup. We're talking about mobile healthnetwork solutions here. What's next for the company after a verysuccessful U.S. listing?Keep it here with us. This is the. Now you have that live from Shanghai.Welcome back.

China markets just heading to lunch.CSI 300 index, revising gains for the day now in losses down about 3/10 of 1%.Just to recap what the banks did. They kept their one and five year LPRunchanged, tracking the Pboc's decision last week, of course, increasingpressure on the Chinese yuan amid bets higher for longer.That's now limited scope for the PBOC to lower rate CSI to an index down Shanghaicome also lower by half a percent right now.In terms of the yuan. Seven 2429 flat versus the US and ofcourse that fix was pretty steady by the PBOC as well.Now China had it to launch Japan back.

From lunch.As we check in on how Japan is doing, April with the very latest.Yeah. Today, we've been seeing Japan part ofthat relief rally across the Asia-Pacific.That sense of perhaps relief coming through because there's been a furtherescalation given the Middle East tensions from last Friday.The Nikkei coming back from the lunch break, a paring some of the gains fromthe morning session, but still has to be said.It is a rebound, a rebound, though, that is still about 9% lower from what we sawin the peak in March and that was post.

DOJ rate hike for the first time in 17years. We are, of course, on the look out forthe DOJ at the end of the week. Friday is when it's set to hold onrates, leaving it unchanged. But given how the weak yen and that tickup in oil prices could be affecting the inflation outlook, there are somepockets of the market that think that the BOJ could announce the start ofquantitative tightening. It could do this through the reductionof bond purchases. We're seeing bonds coming under pressuretoday. I listed the board because also inJapan, what we are watching out for.

Those automakers, we had Nissan missingon the annual profit forecast as the sales came in.Weaker Honda is said to be on the cusp of a deal with Canada, a multi-billiondollar pact that could see the automaker making vehicles and components inOntario province. And this comes at a time where the EVindustry is really at a crossroads, right where we're seeing perhaps someslow consumer uptake because of the high prices, because of the lack of chargingpoints. But it seems like they are making thesebets for the long term has shifted. Errol Hong, thank you.Let's stay with EVs.

Tesla's move to slash prices across itsrange in China risks triggering a new round in a bruising price war.Li Auto immediately responding with discounts and cash rebates and newmodels. Its stock is taking a beating in tradetoday. Tesla CEO Elon Musk, meanwhile, has alsodecided to postpone his trip to India, blaming the delay on pricing issues atthe company, which spent the weekend cutting prices for its cars as well asdriver assistance software. Musk's visit was supposed to include ameeting with Prime Minister Narendra modi and a potential announcement on hisinvestment plans for the country.

Let's get more Dig Deeper.Let's bring in our Sanjay in Mumbai. And Sanjay, of course, what a bummer,right? Because that visit was meant to perhaps,you know, bring some new investments. That was so much excitement prior tothat. This is not the first time.In fact, you know, he was also promised to visit during Vibrant Gujarat, one ofthe most known famous investment platform ofwhich is to it's happened in Gujarat there only this year.But he has promised that he will be coming, but he didn't turn up at all.This is the second time ever he's.

Promised and is not able to make it.And during this visit, he has big plans to meet the prime minister and he alsoplans to announce certain things like, you know, about Tesla opening showrooms.And also we were expecting that there could be some announcements forStarLink, which can be potentially a competitor or rival for Mukesh Ambani's,Reliance Jio, Infocomm, as well as Bharti Airtel, although, you know,number two, telecom operator, wireless operator in the country.So he said duty heavy obligations Tesla obligations he was cancelling but it isnot actually cancellation, it is a postponement.He has promised that it would be coming.

Later this year.The new dates have been known. It will be known and we will keep youposted about that. Of course you will.On top of the story always. Sanjay, you got to wonder whatdifference Elon Musk and Tesla would make in the EV scene in India.Oh, it's a interesting question. So as you rightly pointed out, that it'sless cutting prices because it's facing stiff competition across the world.So after us, he has to cut prices in China and Germany, which would mean tothe US, which is the next big market. And as to the announcement, IndianFinance Minister Nirmala Sitharaman.

Pointed out that India, the policy isright, and since there are concerns shown by other global majors in theChina market, India is a natural destination.So she was hoping that Elon Musk could make some big entry into Indian marketbecause in this the politics are right andstates like Gujarat, Maharashtra and Tamil Nadu have saidthey are offered a huge land parcels, talent pool, etc.to invite Tesla and for Tesla and it will be great market to this populouscountry which is now having its largest, you know, general elections.So they feel Indian in government feel.

That India is a right market for Tesla.And Tesla could make some difference, though there are variousother school of thought that the Tesla could not be affordable for a marketlike India, but for India, this would be a big win If Tesla comes tothe country and announced a plant, that would be big, big, big boon for thePrime Minister Narendra modi, who is contesting elections and who is vyingfor a third term in the country. Lunchbox Bear.Sanjay Mumbai with the very latest on the scene in India, as well as thatdelayed visit of Elon Musk to India. Now for a deep dive into the turmoil atTesla.

Right now, users can read today's bigtech. You can find that story on the terminalat nine big tech or on Bloomberg dot com.Now here's one stock to keep an eye on mobile health Network Solutions is aSingapore telehealth startup that went public on the Nasdaq less than two weeksago and is now the year's hottest U.S. IPO.The stock is up almost 600% from the offer price of $4 per share.For more on its expansion strategy, we're joined exclusively by co-chiefexecutive Rachel Teoh, who is a doctor in charge of medical diagnosis andtreatment.

Rachel, good to have you with us.600% upside. I mean, can the company really justifythat kind of upside in its debut? Hi, thanks for inviting me.Of course, I'm extremely pleased with the strong market validation and thatendorsement. I mean, I'm not surprised with thisstrong endorsement. As you can see, Monada on mobile havenever solutions pro all in one platform. Not only that, we provide all in oneaffordable care, which is not only AI driven, that's truly humanized and youconnect to user intuitively. So if you ask me whether I'm surprised.No, I'm not.

And we will continue to work hard tobuild this. So how do you build investor value fromhere? I mean, what's a growth plan?Thanks. Thanks for the question.Okay. 45% of the net proceeds will go to ourdevelopment of I have companion. We will also be investing in our healthoperating system to ensure that our doctors have access to a robust,robust system, which is industry specific platform.We will also be looking at geographical, as mentioned within the region,and 30% of the proceeds will go to.

Strategic mergers and acquisitions.Rachel, we know that you tapped a small unknown brokerage called Network One foryour IPO. And we know that this brokerage has doneother boom and bust IPOs, the likes of game,the likes of GameStop, for instance. I'm just wondering, are you concernedthat your company could suffer the same fatewherever you look at a failure as firm before?Look at Network One Financial, but extremely pleased with the performanceand they are so far most responsive and professional in handling this, and wehave received very strong market.

Validation on this.I'm sure a fair market will actually recognize what we are doing and thevalue proposition that we bring to the table.So you're confident that mobile Health Network solutions will overcome thosekind of concerns? We have consulted our legal counsel.We work very closely with Roger and Ton and certainly so we are very happy withthat. What want responsiveness and alsoprofessionalism. Any plans for a dual listing inSingapore, for instance? It is, after all, a Singapore company.We are lista in that less than two.

Weeks.We asked our 100% focus on NASDAQ. So at the moment we do not have concreteplan or that as we are actually very focused on building our business.But on a longer term plan in terms of longer term strategy, could a duallisting work for you? Well, look at the current situation.We are expanding regionally. We are able to do what we want.So we are 100% focused on NASDAQ at the moment.Talk to us about your expansion plans in the region, which includes the likes ofAustralia, for instance. I mean, are you planning to addheadcount to these markets?.

So we are looking at a spendingregional, especially Vietnam, Indonesia and Malaysia.This will countries have a combined population of five, half a billion ofpopulation. And not only that, they are one of thefastest growing economies in that region or maybe in the world, and they alsohave a relatively younger population who are more receptive to our innovativehealthcare solution. So these are the few countries we arelooking at at the moment and talking about regional.We are also. Yes, go ahead, Rachel.We are also very mindful to the local.

Regulatory framework.So the authors and I myself are very experienced.Dr. Dalton So he, as you see in thetelemedicine guideline drafting committee and I have more than 20 yearsof experience. So we will be guiding our doctors touphold the standard of care. Rachel, one final question.Expanding the region. Sorry, I can't really.Just one final question. In terms of profitability, when mightthat happen? Okay.At the moment, we are actually looking.

At expansion and the price that we areactually quoting at the moment is actually very affordable.We are talking about in Singapore, dollar about $8, ranging from $8 to $25.So at the moment, we are looking at, as I mentioned, and increase the usergrowth. So even if we increase the price byanother two or $3, we actually turn profitable any time.But that is not the part that we are working on at the moment because we arecurrently focused on building our platform, our health operating system,and also working on an AI health companion.So if you asked me, when do I want to.

Turn the company profitable?Okay, it can be done at any point of time, but at the moment we still want tomake sure that we provide value to our users and patients.We want to ensure that we build a strong foundation for the company and enhancetheir capabilities. Before we talk about profitability, butit will come soon. Rachel, thank you so much for your timetoday. Rachel Deal, Mobile Health NetworkSolutions and of course Alia talking about network and the IPO's that it hasdone. I stand corrected it's not GameStop andincludes the likes of laser photo photo.

Photonics at this point in time amongother 20 companies that has gone IPO. Well still to come Henderson Zinc is a21% drop in fourth quarter net income. The CEO joins us with the outlook next.Keep it here with us. This is the. Welcome back.You're watching India Focus. Hindustan Zinc is the world's secondlargest integrated zinc producer and the third largest silver producer.The unit of the Dent Group reported 21% drop in net income for the fourthquarter, with revenue falling 12% on year.Let's discuss this and more with CEO.

Arun Mishra are in.Good to have you with us. 20% drop I mean and that's due to zincprices. What assumptions are you making aboutsaying zinc prices in the coming quarters?Thank you. Thank you for joining.And if zinc prices going up, I think we have already moved up from 20 $400 thatwould be $50 a tonne. Make it clear that we would be touching$3,000 a tonne by the end of this month, but looks like by September we should bepicking them up to be about 2000. So in terms of demand for zinc, thatwould drive prices.

What me some of those reasons be.So one of them of course being LME sanction of Russia.On the other hand also we see a lot of positivity in the economy, especially inthe US, partly in Europe and of course India and South Asia.India are leading the pack with their highest ever growth rate of more than8.4%. And we see a lot of infrastructure spendin India, which would have something you would appreciate that in the sand.Zinc sells most of its products, more than 60 to 70% in India, etc.So we are highly upbeat about the Indian market.At the same time, our export business in.

Middle East, Southeast Asia are alsogoing strong. Arun There are lots of challenges,including geopolitics, tensions for instance in the Middle East and the RedSea. Might that impact your business?Might that impact your exports? So right now our exports are not so muchimpacted because largely our export, our 80% is in Southeast Asia, very smallpercentage is in the Middle East. Nevertheless, looking at thegeopolitical situation of last two and half years, they are not going to affectas much as they used to do earlier. Perhaps the world was fragmented muchbefore these geopolitical tensions came.

In.So people have learned to have their own market business nearby, their owncountry, and therefore the whole world is surviving for the last 4 to 5 years.And so that would be the way to go in the coming period toour own is not just about selling, it's also about coal.What are you seeing in terms of supplies this year and perhaps in the summer?So coal in general, of course, supply will be affected and many coal producingcompanies may go out of production because of the pressure on it.But we think that already we have resolved that we will buy and 90% of ourpower from renewable power source.

We already have the fourth partiesagreement in place from this month onwards that renewable power is landingat our doorstep and in another couple of years time, 90% of our plants will beclosed and will be dependent only on renewable power.Well, the power purchase and power purchasing rate is fixed for next year,so we'll be out of this channel at the end of the crisis.And what assumptions are you making about coal prices in the comingquarters? Coal prices are going to move up, butnot as much. Not as much, I guess, because I don'tsee any any dysfunction in the supply.

Chain on the books side.I'll run. We know that your board has perhapsdriven a strategic restructuring of the company.How is that coming along? So our strategy this afternoon, the ideais in place, but of course all stakeholders have to be aligned first.And there are issues around the government's offer for sale for thestates that they're both that things have to happen.So we are working out what the things. So talk to us about where talks areright now about that divestment plan and what when exactly that may happen.Right.

But similarly with government officesand the roadshows in Mumbai, there's a lot of intention on the part ofgovernment to get it done as quickly as possible.Perhaps they were waiting for the right situation in the market.But in the Indian stock exchange, markets are acting up.The price up in the settings here have moved up by about more than 60% in lastone month, even more promptly. And it would be easier to maybe putAmerican business here. So this is the right time for governmentto disinvest. And I'm sure if you are hopeful thatgovernment will take note of the current.

Situation and make the best use of itand get there like this been done in a matter of 2 to 4 months time.I run the Sun reports suggesting that perhaps the government is against thesplit. Can you can you provide someconfirmation whether whether that's true or not?It's not for or against an idea. A government has certain reservations ofsense around the idea, principally their vision being that the whole idea thatforced regeneration was the splitting of the company of the overall market, thatbefore we are businessmen, we we understand business and we know how totake risks in the business.

We also know how the market operates.We believe that if you spin the company to silver and leading company, theSilver Company will have their own investors, which will be the right pricefor the shares that the whole, when the leading company will have their own setof investors would be the right price for the shares that they hold and thatwould push up the market cap. Currently we are sitting at about 20billion and we would cross anywhere 24, 25 billion if we split the company.That's our belief. And we are private businessmen.We know how to have an idea and execute itour own.

Speaking of silver, we've seen a run upin silver prices recently. What assumptions are you making aboutprices going forward? Our prices are currently at UP andtoday's technology trials, I think it will go up to 3132, primarily being theworld over those similar products, those are those.But the demand is up primarily in the industry, industrial sector and thepropelled by huge focus on GST, which is pushing up more and more solar panelsbeing manufactured. Of course, the huge global communicationindustry, huge cell phones beat other forms of communication that is alsopushing up a lot of them lithium.

Themselves and the industrial sector.We believe that this situation is going to continue and silver prices will benorthward even now for at least the next 2 to 3 years.Right. So in terms of shortages for silver, doyou see that persisting beyond 2024? Perhaps we'll see the same story in 25and even longer? Even longer because new lines to come upand operate, it will take anywhere between 18 to 24 months.So in my my calculation, even if the current celebrity thing mines have toexpand beyond their level boundaries, it will take another 18 to 20 months.So maybe out of that in a few years, we.

Should see the silver prices becomingstrong. Run.Talk to us about your investment plan for the year where you'll be puttingyour money. Which sectors in particular?Are you looking for new mines, for instance?So as far as our current investments are concerned, we are investing to increaseour hosting capacity by investing in the roaster so that we can produce about 1.5million tonnes of metal. At the same time, we are on the drawingboard for doubling our production in India from 1 million tonnes to 2 milliontonnes, maybe another three months down.

The line.We will be able to make a public announcement on the project and outlayCapEx outlay and the timeline and all that.At the same time we have we have listed and listed, we have already incorporateda subsidiary company in metal exploration company which is dedicatedto exploration, and it will be 40 exploration blocks put up by agovernment. Government of India has put a fewtranches of critical minerals, but not one we have participated.We are, as in something that's participating in coal mine that has beenput into auction.

So I see another 18 to 20 months in thesun. Zinc will go beyond the listing.Silver mill for the gold may put it into platinum, molybdenum and lithium andmaterials like that. I one final question.We know that promise. Narendra modi is set to win theelections for a third term. What policies would you like to see fromhis government that would benefit companies like Hindustan Zinc?So Mr. Modi's policy has always been thatgovernment has no business of being in business, and he has always encouragedprivate participation in business.

And that's what we have seen here.India is in the private hands. The airports, ports are operated byefficient private players and that's the right way to go.And in that, I believe that India, sensing divestment, will also happensoon. So that kind of government also comesout of existence and in descending order if you control the company fully.Arun, it's been a pleasure having you on the show.I read Misra, Hindustan Zinc. Thank you so much for your time today.Plenty more ahead. This is the backand.

Asian markets isn't money.We're keeping very close on Asian chip makers.Not a good story. Take a look at that red pretty muchacross the board. It has to do with an India extending itsslump to about 10%, erasing about $200 billion in value.It is the steepest plunge since the start of the pandemic in March 2020.Take a look at that advantage, down almost 5%.Samsung Electronics down by two and a half percent, while also keeping an eyeon Korean stocks. Auto stocks rallying on renewed value.All reform hope and that gauge of ten.

Korean banks jumping as much as 6%.That is the most since January 5th, 2023.Shinhan financial up more than 6%. That is it.From Bloomberg Markets, Asia. DAYBREAK, middle East and Africa isnext. This is Bloomberg.

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