Tokyo’s Allure Amid Earlier Yen | The Asia Alternate 06/04/2024

HAIDI: THIS IS THE ASIA TRADE.SHERY: THE TOP STORIES, U.S.TREASURIES RISE ACROSS THE CURVE AS A WEEK FACTORY READINGFUELS HENCE THE FED WILL HAVE ROOM TO CUT RATES THIS YEAR. AND WE ARE IN NEW DELHI FORINDIA'S OFFICIAL ELECTION RESULTS AND INVESTORS AREALREADY CHEERING A THIRD TERM FOR PRIME MINISTER MODI.AND WE WILL HEAR FROM TOKYO GOVERNOR ABOUT HANDLINGINFLATION AND INFLUX OF TOURISTS. HAIDI:THE INFLATION OUTLOOK KEY FOR.

KOREA AND WE GET CPI FALLINGMORE THAN EXPECTED, YEAR ON YEAR, 2.7%.ESTIMATES WERE 2.8% GAIN FROM A YEAR EARLIER. THE BROADER OUTLOOK ISSIGNIFICANT SLOWING FROM THE PRIOR READING.MONTH ON MONTH AGAIN OF 1/10 OF 1%.IT HAS FALLEN FROM THE PEAK OF 6.3% BUT THERE ARE SUPPLYISSUES THAT COULD DRAG OUT THE PROCESS.IN ALL LIKELIHOOD THE BOK WILL NEED MORE EVIDENCE TO BECOMEMORE CONFIDENT SO SUFFICIENT.

PROGRESS HAS BEEN MADE AND WECOULD START SEEING EASING FROM THE BOK IN AUGUST. THE SET UPLOOKING MUTED. ASIAN THE STOCKS POISED FORWEAKNESS AT THE START OF TRADING.AFFECTED — FACTORY DATA IN THE U.S. SEEING REPRICING OF FED CUTEXPECTATIONS OF THOSE PLAYS THROUGH TO NOT MUCH OF A HANDOVER SYDNEY FUTURES A FLAT START TO TRADING AND NIKKEIFUTURES LOOKING MUTED. U.S. FUTURES WAS THE FED REPRICINGAND DATA OUTPUT CLOSE TO STAGNANT HERE SO WE ARE SEEINGTHAT STORY AS BEING THE BIG.

RISE ACROSS TREASURIES ACROSSTHE CURVE AND FOCUS ON THE BOND MARKET IS SENT AFTER WEAKERDATA ADDING UP TO MORE OF THE CHATTER AS TO WHAT WE EXPECTFROM U.S. CENTRAL BANKS SHERY. SHERY: WE WILL CONTINUE TO WATCHINDIAN MARKETS. TODAY IS ABOUT THE OFFICIALELECTION RESULTS COMING OUT OF INDIA AFTER SIX WEEKS OF VOTING.A RESOUNDING VICTORY FOR PRIME MINISTER MODI EXPECTED AT THISPOINT AND SAW STOCKS RALLY TO THE RECORD HIGHS. HAIDI:SOFTWARE [INDISCERNIBLE] 99% DROPS MARKET VOLATILITYREALLY VOLATILITY I SHOULD SAY.

IS REALLY FRONT AND CENTER ASWE SAW THOSE BIG MOVES THIS WAS DURING A SOFTWARE DATE MONDAYTHE NEW YORK STOCK EXCHANGE HALTING TRADING ON 40 STOCKS AVERY ODD RATE PLAY THEIR SHERY. SHERY: A LOT TO DISCUSS AND KEYTHEMES WILL BE IN FOCUS HERE. WE MENTIONED VOLATILITY AND WEHAVE SEEN GEOPOLITICS PLAYING OUT AND WHAT IT MEANS FORPEOPLE TO TRY TO DIVERSIFY PORTFOLIOS AND WHAT WE BELIEVETHE TREND IS AT THE MOMENT, LET'S BRING IN OUR FIRST GUESTAT THE CONFERENCE WHO SEES A GROWING INTEREST IN U.S.EQUITIES, THE GLOBAL HEAD OF.

EQUITIES AT S&P DOW JONESINDICES. GREAT TO HAVE YOU THIS MORNINGHERE AT THE TOKYO CONFERENCE. TELL US WHAT YOU SEE BECAUSE WEHAVE SEEN THE U.S. EXCEPTIONALISM NARRATIVE PLAYOUT FOR QUITE SOME TIME. IS THAT ONGOING? >> WE KNOW HOW IMPORTANT THEU.S. EQUITY MARKET IS, MAKES UP 60%OF THE GLOBAL MARKET CAP SO THOSE INVESTORS NOT INVESTED INTHE U.S. EQUITY MARKET ARE REALLYMISSING OUT ON BEING ABLE TO.

PRESS THEIR VIEWS IN A HIGHLYTRANSPARENT MARKET. SO FAR THIS YEAR THE S&P 500,THE BELLWETHER FOR THE U.S. MARKET, IS UP 11%. WE HAVE SEEN GROWING INTERESTIN NON-US INVESTORS DIVERSIFYING PORTFOLIOS,INCLUDING U.S. EQUITIES. SHERY: WHERE ELSE WOULD THEY GO AFTERTHE U.S. MARKETS, GIVEN THE RALLY WEHAVE ALREADY SEEN? >> WE HAVE SEEN REAL INTERESTIN OVERALL DEVELOPED MARKET EQUITIES.THE S&P WORLD WHICH LOOKS AT.

DEVELOPED MARKET IS UP ASIMILAR OR NOT THIS YEAR AND HEAVILY WEIGHTED TO THE U.S.BUT ALSO HAS LARGE EXPOSURE TO JAPAN.SO WE ARE SEEING INVESTORS LOOK ABROAD TO DIE — TWODIVERSIFIED DEVELOPED MARKET AND STRATEGIES IN THE U.S.MARKET OR TRYING TO PLAY SECTORS IN LOOKING INTO THE U.S.ELECTION. SHERY:I WANT TO GET TO THE RISKS AROUND THE U.S.ELECTION BUT IN JAPAN WE HAVE SEEN CORPORATE GOVERNANCENARRATIVE PLAY OUT.

HOW IMPORTANT IS THAT FORSUSTAINABLE RALLY? >> IT IS CERTAINLY A COMPONENTOF WHY WE HAVE SEEN AN IMPRESSIVE RALLY IN JAPANESEEQUITIES. THE DEPRECIATING YEN, THE FIRSTSIGNS OF INFLATION, ECONOMIC STABILITY, IMPROVEMENTS INGOVERNANCE, BEARING OUT THE COST OF CAPITAL OR TAKING CAREOF SHAREHOLDER VALUE SO IT IS ONE PART OF THE BROADER PICTUREIN THE JAPANESE EQUITY MARKET. HAIDI:THE JAPAN SUCCESS STORY HAS EXPANDED BEYOND THE BORDERS ANDWE HAVE SEEN OPTIMISM WITH.

KOREA. DO YOU SEE OTHER MARKETSBENEFIT FROM THAT OPTIMISM? >> I THINK JAPAN HAS REALLY LEDTHE WAY. WE HAVE SEEN REASONABLE PERFORMANCE IN KOREA, SIMILARIN CHINA ALTHOUGH THERE ARE OTHER ISSUES THEY ARE.AND OUTSIDE THE ASIA-PACIFIC REALLY STRENGTHEN ANY OF THEBIGGER DEVELOPED MARKETS. HAIDI: OVERALL, HOW DO YOU SEE CURRENCIES PLAY INTO THE FLOWS? >> THE CURRENCIES HAVE ENORMOUSIMPACT ON FLOWS, PARTICULARLY WHEN WE SEE CURRENCIES LIKE THEYEN OR KOREAN WON, SUCH EXTREME.

ENDS OF THE SCALE.THEY HAVE A BIG IMPACT ON HOW INVESTORS LOOK AT WHERE THEYPUT THEIR MONEY AND WHEN THEY LOOK AT HOW THEY ARECONSTRUCTING THEIR PORTFOLIOS AND THE IMPACT OF LOWER VALUESCAN REALLY DRIVE DOWN SOMETIMES THEIR PERFORMANCE IN LOCALCURRENCY. HAIDI:AI IS FRONT AND CENTER AND ONE OF THE REASONS WHY WE SEE THEOUTPERFORMANCE OF U.S. STOCKS. DO YOU SEE THAT AS BEING A MAJOR DRIVER AND DOES IT WIDENTHE FLOWS YOU SEE IN OTHER.

MARKETS, NOT JUST THE U.S.? >> IT IS DEFINITELY ONE OF THEMAIN THEMES WE SEE IN AND OUT OF THE U.S. MARKET.LOOKING AT THE CONCENTRATION IN THE S&P 500, THEY ARE THE TOPFIVE COMPONENTS THAT ACCOUNT FOR 26% OF THE OVERALL MARKETCAP SO WE ARE DEFINITELY SEEING THE IMPACT IN THE BIGGER MARKET.WE EXPECT THAT THE MEDIC TO CONTINUE AND THERE ARE VARIOUSWAYS MARKET PARTICIPANTS CAN — WE EXPECT THAT THEME TOCONTINUE AND THERE ARE VARIOUS WAYS MARKET PARTICIPANTS CANSEE THAT. SHERY:.

HOW ARE INVESTORS FOCUSING ONTHE ISSUE? >> IT IS SUCH A FASCINATINGYEAR. WE HAVE HAD ELECTIONS ACROSSTHE GLOBE AND AS YOU SAID WE WILL GET THE FINAL RESULTS FROMINDIA TODAY. WE JUST RUN A LOT UNTIL THE ENDOF THE YEAR WITH THE U.S. ELECTION.WE KNOW IN THE PAST THAT INVESTORS HAVE LOOKED ATSECTORS TO PLAY DIFFERENT THEMES IN THE ELECTION, TALKABOUT HOW DIFFERENT CANDIDATE SAY THEY WERE GOING TO DEALWITH DIFFERENT ISSUES,.

INVESTORS LOOKING AT SECTORSLIKE INFRASTRUCTURE OR TECHNOLOGY OR CONSUMER STAPLESBASED ON HOW THEY THINK THE U.S. ECONOMY WILL DO DURING ANDAFTER THE ELECTION. SHERY: THIS TIME AROUND WE HAVE SEEN THE TENURES OF BOTH THESEPRESIDENT'S. PRESIDENT BIDEN AND FORMERPRESIDENT TRUMP. HOW DO INVESTORS DEAL WITH THEMARKETS DURING THOSE TIMES ON ONE OF THE EXPECTATIONS NOW OFWHAT COULD HAPPEN NEXT YEAR? >> IN THE PAST WE HAVE SEENINVESTORS LOOK AT THE SECTORS.

SO WHILE THE S&P 500 ITSELFDOES NOT NECESSARILY CHANGE THAT MUCH DURING THE ELECTION,WE LOOK AT THE DISPERSION WITHIN SECTORS ON THAT CANCHANGE ENORMOUSLY. AS YOU SAID, WE HAVE SEEN BOTHCANDIDATES BEFORE SO WE ASSUME INVESTORS WILL BE LOOKINGCLOSELY AT THAT TO TRY TO GAUGE WHAT WE MIGHT SEE IN NOVEMBER.SHERY: THANK YOU SO MUCH FOR JOININGUS THIS EARLY HERE IN TOKYO AT THE CONFERENCE. WE WILL HAVE MORE FROM THISCONFERENCE.

IT'S THE ANNUAL JAPAN ETFCONFERENCE AND WILL BE SHIPPED — WE WILL BE JOINED BY DANDRAPER EXCLUSIVELY IN THE NEXT HOUR. HAIDI: INDIA IS PREPARING TO COUNT THEVOTES IN NEW DELHI. A REPORT IS NEXT.THIS IS BLOOMBERG. ♪ HAIDI:OFFICIAL VOTE COUNTING BEGINS IN A FEW HOURS IN INDIA AFTEREXIT POLLING HAS SIGNALED A THIRD TERM FOR PRIME MINISTERMODI.

HASLINDA JOINS US FROM NEWDELHI. WHAT ARE WE EXPECTING? >> COUNTING STARTS AT 8:00 A.M.LOCAL TIME AND RESULTS ARE EXPECTED BY 12:00 LATER TODAYBECAUSE DIGITAL VOTING IS EXPEDITING THE PROCESS.LOOKING AT ELIGIBLE VOTERS THERE ARE ALMOST ONE BILLIONPEOPLE. SEVERAL STATES IN FOCUS AS WETALK ABOUT DISCOUNTING. ONE IS THE HOME STATE OF PRIMEMINISTER MODI. 26 SEATS UP FOR GRABS. AT THE LAST ELECTION THE BJPSECURITY ALL 26 SEATS.

AND PRAYER — — AND PREDESH. THE SOUTHERN STATES WHEN ITCOMES TO WHAT MODI IS AFTER, A SUPER MAJORITY 400 SEATS SOTHAT MEANS HE NEEDS TO WIN THE SOUTHERN STATES INCLUDING[INDISCERNIBLE] AND TRADITIONALLY THEY HAVEVOTED FOR THE OPPOSITION BECAUSE THEY ARE AGAINST MODI'SNATIONALIST POLICIES AND NARRATIVES AND WE HAVE ANOTHERSTATE WHICH IS THE WILDCARD BECAUSE TRADITIONAL ALLIANCESHAVE BROKEN DOWN SO THESE ARE THE BROAD STATES WE ARE LOOKINGAT AND EXIT POLLS SUGGEST THAT.

MODI HAS A LANDSLIDE VICTORYBUT IT WILL BE REMAIN — IT WILL REMAIN TO BE SEEN IF HEGETS THE 400 SEATS HE IS AFTER. SHERY:WE KNOW HE FACED AN OPPOSITION ALLIANCE OF MORE THAN 20PARTIES. HOW BADLY DID THEY DO AND WHATARE THE IMPLICATIONS FOR POLICYMAKING FOR PRIME MINISTERMODI? >> IN TERMS OF OPPOSITION ITHAS BEEN LACKLUSTER. UNTIL THIS ELECTION THEY WEREIN DISARRAY AND IT TOOK THIS ELECTION FOR THE 20 PARTIES TOCOME TOGETHER LED BY CONGRESS.

BUT CONGRESS LEDPOSTINDEPENDENCE INDIA BUT HAS HAD A LOT OF INDIAN CORRUPTIONSCANDALS AND VISIONARY POLICIES UNLIKE MODI SO MODI AND THE BJPPARTY FRONT AND CENTER. WHEN IT COMES TO POLICIES HE ISEXPECTED TO ADOPT IF HE WINS, THIS IS A COUNTRY THAT HAS BEENGROWING AT 8% AND MODI WANTS IT TO BE A MIDDLE INCOME COUNTRYBY 2040 MEETING 9% GROWTH FOR THE NEXT 20 YEARS WHICH ISAMBITIOUS BUT HE SAYS HE HAS A PLAN IF YOU LOOK AT HISINFRASTRUCTURE SPENDING PLAN $500 BILLION COULD LIFT INDIATO 9% GROWTH BUT THAT GROWTH.

NEEDS TO BE MORE EQUAL RIGHTNOW INCOME DISPARITY IS THE WIDEST IN 12 YEARS AND HE NEEDSTO DO BETTER THAN THAT. HAIDI: HASLINDA IN NEW DELHI. LOOKING AT OTHER STORIES,BENJAMIN NETANYAHU HAS REPEATED THERE WILL BE NO PERMANENTCEASE-FIRE IN THE WAR IN GAZA UNTIL ISRAEL'S CONDITIONS AREMET BUT SAYS ISRAEL IS WILLING TO PAUSE HOSTILITIES FOR THESAKE OF HOSTAGES. HE HAS PROPOSED A THREE-PHASEPEACE PLAN WITH A TEMPORARY TRUCE. SOUTH KOREA IS MOVING TO.

SUSPEND A BORDER AGREEMENT WITH NORTH KOREA AFTER NORTH KOREASENT 1000 GARBAGE FILLED BALLOONS INTO THE SOUTH.THEY WILL RESUME DRILLS NEAR THE DEMARCATION LINE THATDIVIDES THE COUNTRIES. YOU CAN GET AROUND UP OF THESTORIES ON DAYB AND IN THE BLOOMBERG ANYWHERE APP.THIS IS BLOOMBERG. SHERY: THIS IS THE ASIA TRADE.A GLITCH DURING A SOFTWARE UPDATE MONDAY AT LEFT THE NEWYORK STOCK CONSTRAINED TO WRONGLY HALT TRADING ON 40STOCKS, INCLUDING A 99% DROP IN.

WARREN BUFFETT'S BERKSHIREHATHAWAY. THIS IS THE THIRD DISRUPTION TOHIT THE MARKETS IN THE LAST WEEK. ANYTIME YOU HEAR ABOUTTECHNICAL GLITCHES OUR MINDS GO TO POTENTIAL CYBERATTACKS.DO WE KNOW WHAT HAPPENED? >> WHAT WE HAVE SEEN SO FAR TOPUT THIS IN CONTEXT THIS IS THE THIRD GLITCH WE HAVE SEEN ON –IN A WEEK BUT THIS WAS DRIVEN BY THE CONSOLIDATED TAPEASSOCIATION, A SUBSIDIARY OF THE NYSE WHICH OVERSEES THEDISSEMINATION OF REAL-TIME TRADES AND INFORMATION SO THEREWAS A GLITCH WHEN THEY WERE.

LOOKING AT A SOFTWARE UPDATE SOBECAUSE OF THAT FOR 45 MINUTES THERE WERE 40 DIFFERENT SYMBOLSOF THE MOST POPULAR ONES WAS BERKSHIRE HATHAWAY AND USUALLYWHEN PEOPLE ARE TRADING IT IS CLASS B SHARES BUT THIS WHENYOU SEE A STOP WITH THAT DROP PRETTY DRAMATICALLY AND THENCHIPOTLE WAS ANOTHER NAME IT DID BECAUSE OF THE ERRONEOUSGLITCHES THERE WERE HALTS WITH 40 DIFFERENT SYMBOLS BUT ITENDED UP BEING RESOLVED SO THE NYSE IS BLAMING THIS ON THE CTATHAT DISSEMINATES THEIR REAL-TIME INFORMATION. HAIDI:.

WE HAD A SIMILAR CONFUSION IN2023. HAS THERE BEEN SUGGESTIONS OFHAVING BETTER PROCESSES IN PLACE? >> I COVERED THAT ONE LAST YEARAS WELL. WHAT IS UNIQUE ABOUT THISSITUATION SO YOU SAW SOME INDIVIDUAL STOCKS WHERE THEINFORMATION WAS DISPLAYED DIFFERENTLY BUT I DID NOTACTUALLY IMPACT WHAT WE KNOW SO FAR INDIVIDUAL TRADING OF THE STOCKS IN LAST WEEK THE S&P 500EARLY THURSDAY MORNING IF YOU.

LOOKED IN THE MORNING THEY DIDNOT TAKE HER OVER AN HOUR SO WE HAD 1041 ON BOTH BUT TRADERSWERE ABLE TO STILL EXECUTE ORDERS AND HAVE INDIVIDUALTRADE SO WITH THIS ONE IT SEEMS LIKE IT WAS MORE OF A DISPLAYISSUE RATHER THAN PEOPLE EXECUTING TRADES BUT OBVIOUSLYWE JUST WENT THROUGH THE T PLUS WHERE PEOPLE ARE TRYING TOCLOSE THOSE TYPES OF TRADES ON A ONE DAY BASIS RATHER THAN TODO SO THERE WERE QUESTIONS AS FAR AS WHEN IT COMES TO TRY TORECTIFY THAT AND THEN OBVIOUSLY MONEY CHANGING HANDS AND WHATDOES THAT DO MOVING FORWARD BUT.

THE NYSE DID NOT SAY WHEN ITCOMES TO BERKSHIRE STOCK THAT THEY WILL AS FAR AS WHATHAPPENED WITH THOSE TRADES BECAUSE OF THE STOP THAT THATIS SOMETHING THAT WILL NOT NECESSARILY GO THROUGH BECAUSEOF WHAT HAPPENED BUT THEY ARE STILL INVESTIGATING SOME OF THENAMES THAT WERE WITH THESE INDIVIDUAL STOCKS AS WELL.SHERY: A CHAOTIC STOCK — HAIDI:A CHAOTIC START TO THE WEEK. QUALCOMM SAYS THEIR PARTNERSHIPWITH MICROSOFT WILL MAKE HISTORY AS SIGNIFICANT ASWINDOWS 95.

AS THEY TRIED TO DIVERSIFYAWAY, THEY ARE BULLISH ABOUT CONSUMER PRODUCTS BUILT ON THENEW AI SEMI CONDUCTORS. >> PEOPLE WILL NOT ONLY HAVETHE BEST PERFORMANCE AND A VERY SMALL LAPTOP BUT THEY WILL HAVEBATTERY LIFE FOR EVERYTHING THEY NEED TO DO.YOU CAN LEAVE YOUR CHARGER AT HOME. >> FROM ONE TECHNOLOGY NERD TOANOTHER, WHEN GRANDMOTHERS ALL AROUND THE WORLD GO TO THESTORE TO BUY THEIR FIRST AI PC AND THEY TAKE IT HOME AND TRYTO PLUG IN THEIR PRINTER, WILL.

IT WORK? >> OF COURSE IT WILL.ONE OF THE THINGS IT IS IMPORTANT TO UNDERSTAND THEJOURNEY WE HAVE BEEN IN ON MICROSOFT, IT IS A FUNDAMENTALSHIFT FROM MICROSOFT CHANGING WINDOWS TO AN ARM INSTRUCTIONSET AND CHANGE INTO AN AI PC AND PART OF WHAT WE HAVE DONEIS BRING THE ECHO SYSTEM NOT ONLY THE PRINTERS AND DOCKINGSTATION BUT ALSO THE GAMES, WE HAVE BEEN WORKING WITHMICROSOFT TO HAVE THE TOP 1200 GAMES OPTIMIZED ON THE PLATFORMAND IT IS REALLY ABOUT THE.

FUTURE OF THE WINDOWS ECOSYSTEM.WHAT TO THINK ABOUT IS NOT ONLY WORKING WITH YOUR OLD PRINTERBUT ALSO BEING ABLE TO DO THINGS YOU COULD NOT DO BEFOREWITH YOUR OLD PC. >> YOU CAN GO ON ANY SOCIALMEDIA PLATFORMS AND I SEE THAT THE INTEL STILL DOMINATES THETRADITIONAL SALES CHANNELS FOR PC, THEY HAVE THEIR NAME ON ALLTHE SHELVES. QUALCOMM IS IN A DIFFERENT PARTOF ITS HISTORY. DO YOU THINK YOU CAN TAKE THEM ON ON THOSE SALES CHANNELS WITHMARKETING AND R&D WHERE THEY.

ARE ENTRENCHED? >> R&D I BEG TO DIFFER. IT IS IN A WINDOWS ECOSYSTEM.LOOKING AT CPU PERFORMANCE ORION CUSTOM CTO DEVELOPED BYQUALCOMM IS THE FASTEST FOR ANY PERSONAL COMPUTING. THE MPU IS ONLY POSSIBLE ON AQUALCOMM PLATFORM SO I BEG TO DIFFER ON THE R&D.LET'S TALK ABOUT A NEW MARKET, A NEW CHANNEL FOR QUALCOMM.I WILL TELL YOU WHAT IS DIFFERENT THIS TIME.THERE ARE TWO ASPECTS.

ONE IS CONSUMERS ARE MORE SAVVYAND THEY COME FROM A PHONE. YOUR MOST IMPORTANT PURCHASEDECISION IS YOUR SMART PHONE AND YOU HAVE A LOT OF KNOWLEDGECOMING FROM THE PHONE SO IT IS NOT SNAP CHECK AND SOMETHINGNEW TO YOU. THE MOST IMPORTANT THING IS NOTTHAT. THE MOST IMPORTANT THING, WHEREWE USUALLY SEE THE INCUMBENCY POSITION ON PC IS AT THEENTERPRISE BUT THE ENTERPRISE ACTUALLY HAS US AND MICROSOFT100% ALIGNED. USUALLY ENTERPRISES HAVE BEENSLOWER TO ADOPT NEW VERSION OF.

WINDOWS BUT MICROSOFT ISACTUALLY DOING A GREAT JOB WITH ENTERPRISE AROUND THE WORLD TOGET THEM TO EMBRACE THE COPILOT AND COPILOT PLUS SO THAT IS ABIG TAILWIND AND MICROSOFT IS DRIVING THE ENTERPRISES INTOTHE FUTURE OF AI PC WHICH IS GREAT NEWS FOR QUALCOMM ANDBUILDS ON INCREDIBLE PLATFORM, SNAPDRAGON. SHERY: MY CONVERSATION STILL AHEADWITH THE GOVERNOR OF TOKYO. WE SPOKE ABOUT THE BENEFITS OFA WEAKER YEN. WE HAVE SEEN THE INFLUX OFFOREIGN ARRIVALS TO JAPAN.

AND ALSO HAVE THE CHEAPER YENIS MAKING IMPORT COSTS MORE EXPENSIVE AND MAKING IT ALITTLE MORE DIFFICULT FOR TOKYO CITIZENS WHEN IT COMES TO COSTSOF LIVING. OUR EXCLUSIVE INTERVIEW WASNEXT. THIS IS BLOOMBERG. ♪ HAIDI:WE ARE 30 MINUTES OUT FROM THE MAJOR MARKET OPENS ON WHO THESTORIES YOU NEED TO KNOW . INDIA WILL START COUNTING THOSEBUT INVESTORS ARE ALREADY CHAIRING A THIRD TERM FOR MODI.A LANDSLIDE VICTORY HAS BEEN.

PREDICTED FOR HIM. U.S.TREASURY YIELDS SINKING AMID SPECULATION THE FED WILL CUTINTEREST RATES THIS YEAR CENTRAL BANK HAS INDICATED THATTIMING OF THE NEXT MOVE WILL DEPEND ON DATA WITH FRIDAY'SU.S. JOBS REPORT THE NEXT BIG FOCUS.NYSE IS CANCELING BAD TRADES AND REVIEWING OTHERS AFTER ASOFTWARE GLITCH SPARKED ODD TRADES AND SOME COMPANIES,INCLUDING BERKSHIRE HATHAWAY. THIS IS THE THIRD DISRUPTION TOHATE U.S. MARKETS IN THE LAST WEEK ANDHAS BEEN REVOLVES SHERY. SHERY:.

LOOKING AT HOW THE YEN ISTRADING AT THIS MOMENT, NOT DOING MUCH BUT AFTER DECLININGAGAINST THE U.S. DOLLAR AND TOUCHING A LOW WEHAVE NOT SEEN IN TWO WEEKS MORE OF A FUNCTION OF THE U.S.DOLLAR STRENGTHENED GIVEN WE SAW ISM MANUFACTURING DATADISAPPOINTED TO THE DOW SIDE AND EXPECTATIONS THE FED MIGHTHAVE TO MOVE BUT REALLY SUFFICE IT TO SAY WE ARE STILL AROUNDHISTORIC LOWS AND JAPAN WITH A RECORD AMOUNT OF MORE THAN $62BILLION IN THE LAST MONTH BUT THE WEAKER YEN HAS FEEL –FUELED TOURISM IN JAPAN BUT.

LOCAL WAGES STRUGGLED TO KEEPUP WITH BROADER RISE IN COSTS. I SAT DOWN FOR AN INTERVIEWWITH THE GOVERNOR OF TOKYO AND ASKED IF THE CITY IS ABLE TOHANDLE THE PRESSURE FROM THE INFLUX OF VISITORS. >> IT IS GOOD PRESSURE.MUCH OF THIS YEAR, FOR THE FIRST TIME SINCE STATISTICSBEGAN, THE NUMBER OF VISITORS TO JAPAN EXCEEDED 3 MILLION. IN JAPAN REACHED ¥1.8 TRILLION,11.4 U.S. BILLION — $11.4 BILLION.RECORD HIGHS.

HAVING OVERCOME THE PANDEMIC,INBOUND DEMAND IS INDEED RECOVERING AND FROM THEPERSPECTIVE, THE WEEKEND HAS BEEN A POSITIVE FACTOR.TOKYO WAS RANKED AS THE WORLD'S TOP TOURIST DESTINATION IN THETRAVELERS CHOICE AWARD. SHERY: ARE YOU CONCERNED ABOUT TOKYOCITIZENS THAT HAVE TO FACE HIGHER COST OF LIVING?WHAT SHOULD POLICYMAKERS DO? >> AS YOU MENTIONEDTOKYO HAS BEEN FEELING A LITTLE PRESSURE OF THE WEEKENDAND PROLONGED INCREASE IN COMMODITY PRICES AS YOU POINTEDOUT.

UNTIL NOW, THEY HAVE TAKEN AMULTIPRONGED MEASURES, INCLUDING SAFETY NET SUPPORTAND EFFORTS TO PROMOTE WAGE INCREASE AND PRICE SHIFTING. IN THIS YEAR, THIS YEAR'SBUDGET, THE LARGEST EVER WITH THE PROJECT COST OF 161 BILLIONYEN, ABOUT $1 BILLION, THEY ARE ENHANCING COUNTERMEASURES TOPROTECT TOKYO RESIDENTS AND BUSINESSES. SHERY:WE HAVE BEEN SPEAKING FOR MANY YEARS AND DURING ALL THAT TIMEYOU REALLY HAVE THE GOAL OF MAKING TOKYO A GLOBAL FINANCIALHUB. IT HAS BEEN CHALLENGING.

ONE RECENT RANKING BY THE INDEXPUTS TOKYO NOT ONLY BEHIND HONG KONG AND SINGAPORE, BUT ALSOBEHIND BEIJING AND SEOUL. WHAT IS THE ISSUE? >> WE ARE TRYING TO CATCH UPAND TO RENEW OUR SYSTEM AND SINCE 2017, THE TOKYOMETROPOLITAN GOVERNMENT HAS BEEN IMPLEMENTING VARIOUSMEASURES AND WITH THE GLOBAL FINANCIAL CITY MADE UP OF THREE PILLARS,MAKING TOKYO A CITY WERE GLOBAL STARTUPS ARE BORN AND WITH AGLOBAL STANDARD FOR BUSINESS IN.

ENGLISH. SHERY: MANY MORE PEOPLE SPEAK ENGLISHTHESE DAYS. >> SO THIS FEBRUARY TO ACHIEVE THE GOVERNMENT'S VISION, TOKYOANNOUNCED A SPECIAL [INDISCERNIBLE]FOR ASSET MANAGEMENT BUSINESSES AND AT THE END OF LAST MONTH, AFEW DAYS AGO, I ATTENDED A MEETING REGARDING THE SPECIALZONE SYSTEM OF THE PRIME MINISTER'S OFFICE WHERE IEXPLAINED THE TMJ VISION INITIATIVE AND REQUEST OF THENATIONAL GOVERNMENT.

SO MAKING BEST USE OF THESPECIAL ZONE STATUS, TOKYO WILL ATTRACT MORE LOCAL FUNDS ANDHUMAN RESOURCES, TECHNOLOGY, AND INFORMATION TO BECOME ASUSTAINABLE CITY THAT SERVES AS THE ENGINE HUB FOR INNOVATIONAND FINANCE. SHERY: IF YOU WERE TO HAVE ANOTHERTERM, WHAT WOULD YOU LIKE TO ACCOMPLISH?YOU JUST TOLD ME A LIST OF SO MANY THINGS THAT YOU STILL HAVETO DO FOR TOKYO. >> OF COURSE, I DID MY BESTEFFORT TO DO MY BEST EFFORT TO MAKE TOKYO GREAT AGAIN.[LAUGHTER].

AND SO THE LAST EIGHT YEARS, IDID MY BEST TO DO THAT. SO IT IS A CITY OF HUMAN BEINGSBORN AND RAISED AND EDUCATED. SO CITIES ALWAYS MOVING ANDDEVELOPING. SO WHAT I DID DURING MY YEARS, I DID MY BEST AND I TACKLED THEPANDEMIC, AS YOU KNOW, AND AFTER THE PANDEMIC, TOKYO HASHOSTED THE OLYMPIC GAMES, AND WAS SO SUCCESSFUL THANKS TOMANY PEOPLE. HAIDI: THAT WAS THE GOVERNOR OF TOKYOSPEAKING WITH SHERRY EARLIER.

HERE ARE SOME HEADLINES WE AREWATCHING. ACKMAN'S WEALTH HAS HIT 86BILLION — $8 BILLION, MAKING IT THE HIGHEST VALUED HEDGEFUND. U.S. PRIVATE EQUITY KKR ISCONSIDERING ENTERING THE PRIVATE MARKET IN JAPAN ANDSAYS THEY WANT TO PROVIDE AN ALTERNATIVE TO BANK LOAN SINCEMOST DIRECT LENDING FOR JAPANESE COMPANIES ARE DONEOVERSEAS IN ADDITION THEY — JAPAN IS THE DESTINATION FOR40% OF THEIR INVESTMENT IN ASIA. WE LEARNED CHEVRON HAS HALTEDPRODUCTION AS PART OF A.

FACILITY AND AUSTRALIA AND THEPLANT HAD ONLY RESUME LAST FRIDAY FOLLOWING PROBLEMS INMOST OF MAY AND THIS SLOW DOWN PUTS EUROPEAN GAS SUPPLIES ATRISK AFTER AN OUTAGE IN NORWAY. LNG TRADING AT THE MINUTE ANDTHERE ARE A NUMBER OF SUPPLY ISSUES AND WE JUST SPOKE ABOUTTHE KEY SECTION OF LNG EXPORT FACILITY CAPACITY AND AUSTRALIABEING HALTED ON MONDAY SO THIS IS JUST ONE OF THE EXTRATIGHTENING EFFECTS WE SEE ALONG THAT PIPELINE ISSUE IN NORWAYWE SEE PROTEST WHEN IT COMES TO CANADIAN PIPELINES AS WELL ALSOWATCHING CRUDE AS IT CONTINUES.

TO SEE DOWNSIDE PRESSURE ADDINGTO DOOM AND ALLIANCE STARTING TO PLAN SUPPLY CUTS AS SOON ASOCTOBER FUTURES COPYING THE [INDISCERNIBLE] WE ARE ALSO WATCHING IRON OREAND WE SEE AN UPTICK WHEN IT COMES TO TRADING IN SINGAPOREAFTER SEEING IRON ORE TUMBLED TO THE LOWEST IN SIX WEEKSTHESE CHINA DEMAND CONCERNS CONTINUING TO BE REVIVED MOREON THE OUTLOOK OF COURSE WHICH WE HAVE HAD A HAMBURGER DESPITEA NUMBER OF POLICY MEASURES TO THIS COMING THROUGH FROMCHINA'S LEADERS.

COMING UP, AUSTRALIA'S HOMERENTAL PRICES HAVE SURGED. WE WILL GET ANALYSIS FROM OUREA GROUP NEXT. THIS IS BLOOMBERG. HAIDI: SURGING IMMIGRATION AND ASHORTAGE OF HOUSING IN AUSTRALIA IS DRIVING HOUSINGPRICES TO RECORD HIGHS. THE STEEPEST IN PERTH.THIS REPORT FROM PAUL ALLEN. >> ANOTHER DAY, ANOTHER OPENHOUSE. FINDING A PLACE TO LIVE INPERTH FOR HIS YOUNG FAMILY IS SO CRUSHING.

>> COMING TO THIS RENTALCRISIS, IT IS VERY HARD. >> MORE THAN 100 HOPEFULS HAVEBEEN SHOWN THROUGH THIS TWO-BEDROOM APARTMENT.DESPITE EARNING OVER $100,000 U.S.AS AN ELECTRICAL ENGINEER, HE IS JUST ONE OF MANY IN THE SAMESITUATION. >> ONCE THE HOUSE IS OPEN, YOUIMMEDIATELY GO BACK BUT TO GO IN THE FRONT OF THE GROUP,[INDISCERNIBLE] >> FOR REAL ESTATE AGENTS IT ISONE OF THE MOST UNDERSUPPLIED MARKETS THEY HAVE EVER SEEN.

>> RENTAL HISTORIES, NO PROBLEMPUTTING IN YOUR PROPERTY. PUTTING IN APPLICATIONS, THEYGET KNOCKED BACK. THERE IS A SERIOUSUNDERSUPPLIED OF RENTAL PROPERTIES IN PERTH AT THEMOMENT. >> AUSTRALIA'S RESOURCES GIANTSHAVE A HEAVY PRESENCE IN PERTH AND COMMODITY PRICES ARE STRONGAND PEOPLE ARRIVE AND THAT IS WHEN THE RENTAL MARKET REALLYFEELS THE SQUEEZE. JUST OVER 13,000 NEWDEVELOPMENTS WERE BUILT IN THE PAST YEAR BUT THE POPULATIONGREW BY 87,000.

SYDNEY IS THE MOST EXPENSIVEPLACES IN AUSTRALIA FOR HOUSING. BUT AS THE POPULATION HASGROWN, PERTH RENTS HAVE RISEN FASTER THAN ANYWHERE ELSE,INCREASING MORE THAN 18% IN THE END OF MARCH.THE SOLUTION IS OBVIOUS BUT NOT FAST. BUILD MORE HOMES. THESTATE GOVERNMENT HAS COMMITTED $1.7 BILLION TO ADDRESS THESHORTAGE AND JUST BROKE GROUND ON THIS INNER-CITY PROJECTINTENDED TO PROVIDE 200 APARTMENTS.A SMALL STEP TOWARDS ADDRESSING A DAUNTING IMMEDIATE PROBLEM.

HAIDI: LET'S GET MORE INSIGHT ONAUSTRALIA'S PROPERTY MARKET. THE SENIOR ECONOMIST AT REAGROUP JOINS US NOW. HAS THIS BEEN A BUILDUP OFSTRUCTURAL ISSUES OR IS THERE ONE THING THAT STANDS OUT AS TOWHY WE SEE THIS? >> THAT'S A REALLY GOODQUESTION . THESE CRISIS CONDITIONS HAVEGRIPPED THE NATION'S RENTAL MARKET FOR YEARS AND IT IS AMULTITUDE OF FACTORS THAT DROVE US TO THIS POINT.THERE IS VERY STRONG DEMAND TO RENT AT THE MOMENT.

BOLSTERED BY IMMIGRATION GAINSAND SURGE OF STUDENT ARRIVALS. THERE IS A TIGHT SUPPLY OFPROPERTIES AVAILABLE AND THAT IS PUSHING RENTS.WE JUST HEARD ABOUT PERTH. IT RENTAL MARKET IS INCREDIBLYTIGHT. RATES HOVERING AROUND 1%, INDICATIVE OF CRISIS CONDITIONSAND THOSE WILL BE VERY DIFFICULT FOR MANY TO FINDRENTALS SO IT'S REALLY CHALLENGING CONDITIONS.RENT AFFORDABILITY IS NOT THE WORST POINT IN AT LEAST TWODECADES. LOOKING AT THE BIGGER PICTUREENVIRONMENT AS TO HOW WE GOT.

HERE, SUPPLY IS THE CRITICALISSUE. A CHRONIC SHORTAGE OF HOUSINGIS DRIVING RENT AND HOME PRICES HIGHER. HAIDI:ARE THERE ANY EASY OR GOOD ANSWERS? >> AGAIN, REALLY GOOD QUESTION.[LAUGHTER] WHEN IT COMES TO EASY ANSWERS,I DO NOT THINK THERE IS ANY SILVER BULLET TO FIX THISCONDITION AND THE RENTAL MARKET. AND THE SEVERE DETERIORATION INHOUSING AFFORDABILITY WE SEE. THERE IS NOT A CIVIL BULLETANSWER BUT THERE ARE A NUMBER.

OF FACTORS THAT COULD HELP EASERENTAL MARKET CONSTRAINTS. INVESTING MORE IN THE RENTALSECTOR COULD ADD TO THE AVAILABLE POOL OF LONG-TERMRENTALS. UTILIZING EXISTING HOUSINGSUPPLY IS ANOTHER FACTOR SO ENCOURAGING DOWNSIZING ANDBETTER USE OF MILLIONS OF SPARE BEDROOMS THAT ARE AVAILABLE.BUT THE ONLY SUSTAINABLE LONG-TERM FIX IS INCREASING THESUPPLY OF AVAILABLE HOUSING. AND THAT TAKES TIME AND WE KNOWTHE CONSTRUCTION INDUSTRY AT THE MOMENT IS FACING CAPACITYCONSTRAINTS, MATERIALS COSTS.

HAVE GONE UP 30% SINCEPANDEMIC, THERE ARE LABOR SHORTAGES, HIGH FINANCINGCOSTS, SO IT IS HARDER TO GET PROJECTS OFF THE GROUND. SHERY:GIVEN ALL OF THE REASONS YOU MENTIONED, WE ARE SEEING A HIGHINCOME PEOPLE RENTING OUT PLACES.WHAT DOES THAT TELL YOU ABOUT THE BROADER ISSUE AT HAND WHENIT COMES TO THE STRUCTURE OF THE HOUSING MARKET? >> YOU ARE EXACTLY RIGHT.WE SEE AN INCREASE IN HIGHER.

INCOME HOUSEHOLDS IN THE RENTALMARKET, WHICH ALSO POSES CRITICAL ISSUES FOR LOWERINCOME HOUSEHOLDS FOR WHOM NO RENTALS ARE AFFORDABLE AT THEMOMENT. ONE IN 100 RENTALS ARE AFFORDABLE FOR LOW INCOMEHOUSEHOLDS IF THEY WERE TO SPEND 25% OF THE PRETAX INCOMEON RENT, WHICH IS REALLY INDICATIVE OF DISASTROUSCONDITIONS. AND LOW INCOME HOUSEHOLDS BEINGFORCED TO COMPETE WITH HIGH INCOME HOUSEHOLDS IN THE RENTALMARKET INDICATES A BROADER STRUCTURAL ISSUE.WE KNOW AFFORDABILITY HAS.

DETERIORATED SIGNIFICANTLY INAUSTRALIA. AT ITS WORST IN AT LEAST THREEDECADES. THE MEDIAN INCOME HOUSEHOLDSCOULD ONLY AFFORD 13% PROPERTY SOLD ACROSS THE COUNTRY.SO WITH THIS DETERIORATION IN AFFORDABILITY WE SEE HIGHINCOME HOUSEHOLDS ARE TAKING LONGER TO PURCHASE A HOME ANDMORE AND MORE HOUSEHOLDS ARE BEING FORCED INTO THE RENTALMARKET AND THE HIGHER INCOME HOUSEHOLDS ARE NOW COMPETINGWITH LOW INCOME HOUSEHOLDS THAT REALLY CANNOT COMPETE. HAIDI:.

HOW MUCH OF THIS IS A CONCERNFOR THE REA WHERE RENT IS ONE OF THE STICKY ELEMENTS? >> IT IS TRICKY FOR THE RESERVEBANK AT THE MOMENT. HOME PRICE AND RENTAL PRICESARE NOT WITHIN THEIR MANDATE BUT TO THE EXTENT THAT THEHOUSING SHORTAGE IS CONTINUING TO FUEL EVER HIGHER RENTS, ITFEEDS INTO INFLATION AND PROMOTES LONGER-LASTINGINFLATION DYNAMIC SO CERTAINLY WHEN IT COMES TO INFLATIONOVERALL WE EXPECT THE BROAD TREND WILL CONTINUE IN TERMS OFINFLATION MOVING LOWER IN THE.

MONTHS AHEAD BUT THIS SURGEONRENTAL PRICES WE SEE RECENTLY IN PERTH, RENTAL CRISIS –RENTAL PRICES UP 80% ON PRE-PANDEMIC LEVELS ANDNATIONAL WE UP MORE THAN 40%. ALTHOUGH WE SEE THE PACE OFRENTAL PRICE GROWTH MODERATE, WE DO NOT SEE THE SUPPLYRESPONSE NEEDED IN ORDER TO EASE RENTAL PRICE LOADS SO WEEXPECT THE STRONG RENTAL PRICE GROWTH WILL CONTINUE TO FEEDINTO INFLATION PRESSURES. HAIDI: SHORT OF BUYING UP REAL ESTATE,WHAT IS THE BEST MOVE FOR INVESTORS?.

>> IN TERMS OF INVESTOREXPOSURE, INVESTORS ARE BECOMING MORE ACTIVE IN THEAUSTRALIAN HOUSING MARKET. IT MAKES SENSE WHEN WE KNOWRENTAL YIELDS HAVE RECOVERED OFF THE LOWS OF THE PANDEMICAND INVESTOR ACTIVITY IS BECOMING PREVALENT IN THOSEMARKETS WHERE RENTAL PRICE GROWTH IS MORE EXTREME ANDVACANCIES ARE LOWER. ADELAIDE, PERTH, IN THOSEMARKETS RENTAL VACANCIES ARE AROUND 1%.IT MEANS PROPERTIES ARE RENTING OUT VERY QUICKLY, COMPETITIONIS TIGHT, AND RENTAL PRICE.

GROWTH REMAINS STRONG IN ALLTHE MARKETS, WHICH CREATES ATTRACTIVE CONDITIONS FORINVESTORS AT THE MOMENT. HAIDI: ELEANOR, GREAT TO SEE WASALWAYS. YOU CAN CATCH UP ON PAST INTERVIEWS AND WATCH US ON OURINTERACTIVE TV FUNCTION ON TV .JOIN THE CONVERSATION AS WELL. SEND US MESSAGES DURING OURSHOWS. DO CHECK IT OUT. TV . THIS IS BLOOMBERG. ♪ SHERY:TAKE A LOOK AT HOW GAMESTOP SHARES SURGED IN THE U.S.SESSION, UP 21%.

140 MILLION POSITION INGAMESTOP SO WE ARE SEEING IT STILL DOWN MORE THAN 70% FROMTHE 2021 BUT WE WANT TO GET TO THIS STORY BECAUSE IT SEEMSTHAT BUSINESS OF BETTING ON STOCKS DECLINES ON WALL STREETIS SHRINKING. SOME OF THE BIGGEST NAMES INSHORTSELLING HAVE BEEN PULLING BACK.WE ARE GETTING OUT OF THE GAME ALTOGETHER.FOR MORE ON TODAY'S BIG TAKE, LET'S BRING IN OUR REPORTER INNEW YORK. WHAT HAPPENED WITH THE STOCK?.

>> IF WE LOOK AT SHORTSELLINGACROSS THE GROWTH OF THE INDUSTRY, IT HAS BEEN SHRINKING.FOR EXAMPLE, THIS TYPICAL STOCK HAS ONE .7% SHORT INTEREST,AROUND THE LOWEST IN OVER 20 YEARS.IF YOU LOOK AT THE SHORT SELL INDUSTRY IT HAS SHRUNK AND ISAT AROUND 4 BILLION FROM A BIGGER PEAK.WE SAW SOME OF THE BIGGEST NAMES, CONVERTING HEDGE FUNDSINTO FAMILY OFFICE AND WE SPOKE TO ANDREW LEFT, WHO CALLEDSHORT-SELLERS LIKE HIM A DYING BREED. NOT OPTIMISTIC ABOUT THEINDUSTRY AND SAID IT IS HARD TO.

RAISE CAPITAL. CARSON BLOCK STARTED HIS FIRSTFUND AND IT IS EMBLEMATIC OF THE CHALLENGES THE INDUSTRY ISFACING. WHAT WE ARE SEEING IS AS [INDISCERNIBLE]RETURNS HAVE BEEN SHAKING THEIR HAVE BEEN A FEW YEARS WITHRETURNS AND INVESTORS HAVE JUST BEEN LESS INCLINED TO ALLOCATETHOSE STRATEGIES AS THE S&P 500 HAS BEEN REACHING NEARER GAINSSEND YOU CAN IMAGINE IT'S A GOOD BET SO IT IS HARDER TOPROMOTE THOSE STRATEGIES FOR EXAMPLE TO PENSION FUNDS ANDBIGGER INSTITUTION AREA.

INVESTORS. SHERY:WHAT DOES THIS GAMESTOP FRENZY TELL US ABOUT HOW INVESTORS,RETAIL INVESTORS, HOW IMPORTANT THEY HAVE BECOME IN THE MARKET? >> VERY IMPORTANT ESPECIALLYFOR SHORT-SELLERS. 2021 WAS ONE OF THE MOSTDIFFICULT YEARS FOR SHORT-SELLERS BECAUSE ON TOP OFWORRIED ABOUT COMPANIES SUING THEM AND ON TOP OF REGULATORSBANNING THEM, THEY HAD TO START WORRYING ABOUT PEOPLE SQUEEZINGSHORT POSITIONS.

NOW IS THE PERFECT TIME TO TALKABOUT IT. WE SAW WHAT IS HAPPENING WITHGAMESTOP TODAY AND EARLIER IN MAY AND THEY ARE DEFINITELY,FOR EXAMPLE ANDREW LEFT IS SAID HE HAS A NEW SHORT POSITION, HEIS ONE OF THE NAMES GOT CALLED INTO GAMESTOP LAST TIME THELAST TIME THE POSITIONS GOT SQUEEZED A LOT OF SHORT-SELLERSTRIGGER THEIR HEDGE FUNDS CLOSE IT WAS A BIG — FORSHORT-SELLERS AND A LOT OF LOSSES.THAT SAID THE SHORT-SELLERS HAVE STARTED ADJUSTING BUT ITHAS BEEN HARDER TO SHORT THOSE.

NAMES AND THEY HAVE DEFINITELYSTAYED AWAY FOR MOST OF THEM, THAT IS FOR SURE. HAIDI:ARE ACROSS ASSET REPORTER IN NEW YORK. WE ARE FOUR MINUTES AWAY FROMTHE START OF TRADING IN JAPAN AND AUSTRALIA. ANA IS ONE OF THE ONES IN FOCUS. HAIDI:IT IS ALL ABOUT THE BOND MARKET WHEN IT COMES TO TREASURIESACROSS THE CURVE.

SORT OF TAKING THE WIND OUT OFSOME OF THE ENTHUSIASM FOR EQUITIES AND CERTAINLY IT WASNOT MUCH OF A HANDOVER FOR THE ASIAN MARKETS. SHERY: WE ARE SEEING THE IMPLICATIONSFOR THE CURRENCY MARKETS AS WELL AS WE SAW THE U.S.DOLLAR REALLY TAKE A PLUMMET AND OTHER CURRENCIES STARTING.TO GAIN GROUND. WE WILL BE DISCUSSING ALL OFTHIS HERE IN TOKYO WHERE WE ARE AT THE S&P DOW JONES INDICES. AND AS WE CONTINUE TO SEE THOSERISKS AROUND THE MARKETS.

WHAT IT MEANS FORDIVERSIFICATION. HAIDI: WHAT A TIME TO BE TALKING ABOUTJAPAN RISK ASSETS. THIS AS WE QUESTION WHAT THENEXT LEG WILL BE WHEN IT COMES TO THE JAPANESE EQUITY RALLY WEARE LOOKING AT SOME POSITIVITY WHEN IT COMES TO AT LEASTTRADING FOR JAPANESE BONDS AT THE MOMENT.EQUITY MARKETS ARE LOOKING LIKE WE ARE SEEING SOME DOWNSIDEPRESSURE ALREADY. OF COURSE TREASURIES RISINGACROSS THE CURVE MONDAY. THE FACTORY ACTIVITY DATACAUSING REPRICING AS 21ST A LA.

EVENING — EASING COULD COMEFROM THE FED. A PRETTY MUTED SESSION FOR U.S.EQUITIES AND THAT IS THE HANDOVER WE HAVE IN ASIA.THE DOLLAR YEN HOLDING PRETTY STEADY AT ABOUT THE 156 LEVEL.WATCHING BOND YIELDS ACROSS ASIA AS WELL.TAKE A LOOK AT THE START OF TRADING FOR KOREA.THIS IS A PICTURE FOR THE KOSPI AS WELL AS THE KOSDAQ, PRETTYMUTED FOR TECH STOCKS. OF COURSE WE HAD THEDISRUPTIONS IN THE NEW YORK STOCK EXCHANGE WITH SOME OFTHOSE ERRORS TO BE WATCHING.

THE KOSPI OFF BY ABOUT .5%.KOSDAQ JUST HOLDING ITS HEAD ABOVE WATER. HERE IN AUSTRALIA OVER CONCERNSMONEY MARKETS PRICING IN A RATE RISE IN AUGUST. WE HEARDCOMMENTS ABOUT THE PREDOMINANT CHALLENGE OF INFLATION FROM THEDEPUTY GOVERNOR EARLIER THIS WEEK.THAT IS STILL AT PLAY AND WE ARE SEEING EQUITIES LOOKING ALITTLE SOFTER. THE AUSSIE DOLLAR ABOUT .5%WITH THE U.S. DOLLAR FALLING AGAINST ALMOSTALL ITS PEERS.

LET'S BRING IN OUR NEXT GUEST,SEAN DARBY JOINING US FROM HONG KONG.OBVIOUSLY THIS SESSION IS VERY MUCH ABOUT BOND MARKETS.HOW MUCH ARE YOU LOOKING AT THE U.S.DATA, FACTORY ACTIVITY DATA, THE STAGNANT OUTPUT LEVELS WEARE SEEING? AND DOES THAT FEEDTHROUGH TOEASIER FED EXPECTATIONS? SEAN: CERTAINLY THE MANUFACTURINGDATE IT WAS DISAPPOINTING ALTHOUGH IT IS NOT NECESSARILYBEEN AS STRONG AS SOME OF THE OTHER DEVELOPED WORLD MARKETS.CERTAINLY VERY MUCH WEAKER THAN.

EMERGING MARKETS.BUT YOU NEED TO REMEMBER THE U.S. IS A SERVICE-BASED ECONOMY.IF YOU LOOK AT THE ATLANTA WAGE FED TRACKER, IT IS STILL WELLABOVE 4.4% YEAR ON YEAR. AND THAT IS WAY HIGHER THAN WEHAD DURING THE PRE-COVID TIMES. SO I DON'T THINK NECESSARILYTHAT DATA ALONE IS GOING TO SIGNAL THE FED IS GOING TO BEON AN EASING PATH BY ITSELF. WHAT YOU NEED TO SEE ISACTUALLY CREDIT MARKET SPREADS START TO WIDEN IN ANTICIPATIONOVER A SLOWING ECONOMY. ALSO CAPITAL MARKETS WEAKENINGAS THEY BEGIN TO SEE AN.

EARNINGS DISAPPOINTMENT.NEITHER OF THOSE ARE APPARENT AT THE MOMENT.I THINK MAYBE THIS IS ANOTHER ONE OF THOSE.– FOR STORMS WITH THE RAKE US — RATE CUT ENTHUSIASTS. HAIDI:DOES THAT MAKE INTERNATIONAL MORE APPEALING GIVEN PERHAPSTHE LACK OF BREADTH SEE IN U.S. MARKET? SEAN:MAYBE THE WAY TO PLAY THINGS IS NOT IN THE RATE MARKET BUT INACTUAL CURRENCIES. THE DOLLAR IN TERMS OF ITSNOMINAL EXCHANGE RATE VALUES NEAR RECORD HIGHS.CERTAINLY THE RATE OF AFFECT IS.

CLOSE TO THEIR HIGHS IF YOULOOK AT CURRENCIES IN THE ASIA LIKE THE TAIWANESE DOLLAR ORJAPANESE YEN OR THE MALAYSIAN RINGGIT, THEY OFFER A VERYSTRONG UPSIDE GIVEN THAT RELATIVE PERFORMANCE OVER THELAST THREE YEARS AND ONLY THREE OF THESE ECONOMIES AREGENERATING CURRENT ACCOUNT SURFACES.MAYBE THE WAY TO PLAY THINGS IN THAT SLOW-MOVING RATE MARKET ISTHROUGH THE EXCHANGE RATES. ASIA SEEMS VERY WELL-PLACED INTHAT RESPECT. SHERY:THE KOREAN SUPERSTAR LEVEL OF.

VOLATILITY WE MIGHT GET FORASIAN CURRENCIES. WHEN IT COMES TO ASIA FX IT ISHIGHER AT THE MOMENT. SEAN: WHERE WE HAVE SEEN PRESSURE INEXCHANGE RATES IN TERMS OF WEAKENING IN PLACES LIKEINDONESIA, THEY HAD TO RAISE RATES, AND KOREA HAS HAD TO THEFOR ITS RATE CUTTING — DEFER ITS RATE CUTTING EXCITATIONS.MOST OF THIS IS DUE TO WORRIES THAT IT WOULD BRING IMPORTEDINFLATION INTO ECONOMIES. IRONICALLY FOREIGN EXCHANGERESERVES ARE HOLDING STEADY. THESE ARE MORE TECHNICALASPECTS FOR THE CENTRAL BANKS.

IN MANAGING THEIR EXCHANGERATES. THEY HAVE BEEN ULTRA PUTIN ANDVERY CONSERVATIVE. THAT LENDS ITSELF TO SOMEREALLY GOOD ABSOLUTE RETURNS FOR EQUITY MARKETS IN THISREGION AS WE START TO SEE SOME ENTHUSIASM FOR PICKING UPCURRENCIES RATHER THAN RATES AS WE COME NEARER TO THE END OFTHE TIGHTENING CYCLE IN THE U.S., AND START TO MOVE TO AMORE EASING BIAS. SHERY:WE HAVE SEEN THE KOREAN WON BE ONE OF THE BIG LAGGARDS ACROSSASIA THIS YEAR BUT AT THE SAME.

TIME THE TRADE SURPLUS SEEMS TOHAVE RECOVERED WITH EXPORTS NOW GAINING ABOUT 12% IN THE LASTREADING YEAR-ON-YEAR. ARE WE GOING TO SEE IN RECOVERYIN THAT MARKET, AND WHAT WOULD YOU BET ON WHEN IT COMES TOSTOCKS AS WELL? SEAN: WE HAVE BEEN VERY FORTUNATETHAT KOREA'S BIGGEST TRADING PARTNER, CHINA, HAS STARTED TOSEE ITS OWN ECONOMIC CYCLE RE-EXPAND SINCE THE BEGINNINGOF THE YEAR. THAT HAS BEEN GOOD NEWS FOR THEBROADER BASED EXPORT MARKET IN KOREA.EXPORT CRISIS HAVE BEEN GROWING.

IN YEAR-ON-YEAR TERMS EACHGENERALLY GOOD FOR THE KOSPI. PERHAPS THE MOST LACKLUSTERFEATURE FOR KOREA IS CONSUMPTION.AND YOU HAVE TO BEAR IN MIND THAT WE HAVE HAD REAL RATESMOVING BACK TOWARDS ZERO. AND AGAIN, WAGE KOREA — WAGEINCREASES IN KOREA BEING NOWHERE NEAR AS EXCITING AS YOUSEE IN OTHER PARTS OF THE WORLD. THE MISSING LINK IN KOREA ISTHAT THE BANKS ARE NOT NECESSARILY GOING TO DO VERYMUCH WITH A VERY FLAT YIELD CURVE AND CONSUMPTION TRENDSHAVE BEEN VERY LACKLUSTER IN.

COMPARISON TO WHAT YOU HAVESEEN IN THE DEVELOPED WORLD AND IN OTHER PARTS OF ASIA. SHERY:HOW EXCITING IS JAPAN AT THE MOMENT? WE ARE AT THIS S&P DOW JONESCONFERENCE AND EVERYONE SEEMS TO BE FOCUSING ON THE CORPORATERESTRUCTURING WE HAVE SEEN, THE CORPORATE GOVERNANCE ANDIMPROVEMENT WHEN IT COMES TO JAPAN. IS IT SUSTAINABLE? SEAN:IT IS. YOU WERE TALKING EARLIER ONABOUT WEAKNESS IN THE U.S. MANUFACTURING DATA ANDEXPECTATIONS GROWING OF A RATE.

CUT IN JAPAN.JAPANESE BREAKEVEN INFLATION EXPECTATIONS ARE CLOSE TORECORD HIGHS ON THE 10 YEAR. A VERY DIFFERENT CYCLE ISEMANATING IN JAPAN WHERE YOU GET THE RECOGNITION OFCORPORATE GOVERNANCE IMPROVEMENTS, WHICH HAS BEEN ANONGOING FEATURE LAST FIVE OR SIX YEARS, COMBINED WITH ACHANGE IN THE INFLATION TEMPERATURE WHICH IS VERY GOODFOR NOMINAL PROFITS. AND OF COURSE YOU HAVE ANEXCEPTIONALLY WEAK YEN. YOU'RE GOING TO GET A STEEPYIELD CURVE IN JAPAN WHICH IS.

GREAT NEWS FOR EQUITY MARKETS.ALSO IF YOU LOOK AT THE TOPIX IN TERMS OF VALUATION, IT ISNOWHERE NEAR AS EXPENSIVE WHEN COMPARED TO THE UNITED STATES.SO I THINK JAPAN HAS PROBABLY STILL GOT ROOM TO BE ONE OF THEBEST PERFORMERS THIS YEAR. SHERY:IS THERE A POINT WHEN THE YEN BECOMES TOO WEAK AND A PROBLEM?WE WERE SPEAKING TO PROP — WE WERE SPEAKING TO PAUL KRUGMANYESTERDAY AND HE THOUGHT IT WAS AN OVERALL WAS AT OF THING FORTHE ECONOMY. SEAN: THERE IS NOT REALLY TOO MUCHRISK OF A DESTABILIZING PROBLEM.

FOR JAPAN IN TERMS OF A WEAKERYEN. IT IS THE IMPORTED INFLATIONTHAT IS MORE OF A WORRY. REMEMBER, JAPAN RUNS A CURRENTACCOUNT SURPLUS AND THAT IN ITSELF IS A BUFFER IN TERMS OFMAKING THE YEN PERHAPS A LITTLE LESS SUSCEPTIBLE TO BIG SWINGS.PERHAPS THE BIGGEST RISK, THE LONGER-TERM RISK, IS THAT ITFORCES THE OTHER REGIONAL CURRENCIES INTO SOME FORM OFDEVALUATION MORE. AND NOTABLY THE RISK MUSTBEFORE THE R&B WHICH NEEDS TO DEPRECIATE TO GET SOMEINFLATION ASIAN — INFLATION.

BACK INTO CHINA.PARADOXICALLY IT MAY NOT BE NECESSARY FOR THE DOMESTICECONOMY IN JAPAN WHICH GOT IMPORTED INFLATION.IT MAY BE THE BROADER ROLE IN WHICH THE YEN PLAYS INDESTABILIZING SOME OF THE NORTH ASIAN CURRENCIES. SHERY:ALWAYS GOOD TO CHAT WITH YOU. SEAN DARBY. HAIDI:WE ARE JUST ABOUT UNDER 10 MINUTES INTO THE START OFTRADING. THESE ARE SOME COMPANIES ANDSTOCKS WE ARE WATCHING AS A RESULT.ANA IS CONSIDERING JET ORDERS.

AMID INTERNATIONAL EXPANSIONPLANS. EVALUATING BOTH ORDERS ANDDOUBLING DOWN ON THAT INTERNATIONAL GROWTH.THE CORE OF THEIR STRATEGY, AND THIS IS OF COURSE JAPAN'SBIGGEST CARRIER, UNCHANGED AT THE MOMENT.THE AUTOMAKERS FRONT AND CENTER. TOYOTA HALTING SALES OF THREEMODELS OF THESE CARS. HE SAFETY SCANDAL CONTINUES TODEEPEN. THE TRANSPORT MINISTRY JAPAN TOCONDUCT AN ON-SITE INVESTIGATION TUESDAY.CARMAKERS AS WELL AS SUPPLIERS.

BEING INVESTIGATED AFTERSCANDALS AT SOME OF YOUR THAT UNITS.THREE WERE MANUFACTURED BY TOYOTA AND THERE WERE ANOTHERTHREE MODELS OF VEHICLES INVOLVED AS WELL.THE FAULTY DATA DURING PEDESTRIAN SAFETY TEST WASSUBMITTED INCLUDING COROLLA MODELS.WE CONTINUE TO WATCH THE IMPACT ON THAT.NASDAQ THE ONLY PERFORMER IN TERMS OF AUTOMAKERS IN JAPAN.SHERY: STILL AHEAD, WE WILL BE SPEAKING EXCLUSIVELY TO DOWJONES S&P CEO DAN DRAPER.

WE'RE LIVE AT THEIR ANNUALCONFERENCE HERE IN TOKYO. FIRST, INDIA SET TO ANNOUNCETHE ELECTION RESULTS IS MARKETS ALREADY CHEER A THIRD TERMVICTORY FOR PRIME MINISTER MODI. WE'RE LIVE TO NEW DELHI NEXT.THIS IS BLOOMBERG. ♪ SHERY:YOU ARE WATCHING “THE ASIA TRADE.”OFFICIAL VOTE COUNTING WILL BEGIN IN A FEW HOURS IN INDIAAFTER THEY SIGNALED A THIRD TERM VICTORY FOR PRIME MINISTERMAY NARENDRA MODI. HASLINDA AMIN JOINS US LIVEFROM NEW DELHI.

WE SAW INDIAN STOCKS REACH ARECORD HIGH SO IT SEEMS INVESTORS ARE GIVING — TAKINGTHIS AS A GIVEN. WHAT SHOULD WE BE WATCHING OUTFOR TODAY? HASLINDA: IT IS A BIG DAY FOR INDIA.COUNTING BEGINS AT 8:00 A.M. LOCAL TIME, RESULTS EXPECTED INJUST A NUMBER OF HOURS. QUITE A FEAT FOR A COUNTRY WITHABOUT ONE BILLION ELIGIBLE VOTERS. OF COURSE IT HAS BEEN DIGITALSO THAT EXPEDITES THE PROCESS. 543 SESATS, AND YOU NEED ASIMPLE MAJORITY BY WHICH WE.

MEAN 272 SEATS.SOME STATES ARE BEING WATCHED FOR A PARTICULAR.MODI'S HOMETOWN, HOME STATE. 60 SEATS UP FOR GRABS.AT THE LAST ELECTION, MODI'S PARTY SECURED ALL THE SEATS.ALSO THE MOST POPULOUS STATE, 80 SEATS UP FOR GRABS.LAST TIME THEY SECURED 67. YOU HAVE TO WIN THERE IF YOUWANT TO WIN THIS ELECTION IN PARTICULAR.AND OF COURSE WE HAVE THE SOUTHERN STATES HERE.THEY HAVE TRADITIONALLY VOTED THE OPPOSITION.THAT'S BECAUSE THEY HAVE BEEN.

PUSHING BACK ON BJP'S HINDUNATIONALIST POLICIES. ONE MORE STATE WE ARE LOOKINGOUT FOR, WE HAVE TRADITIONAL ALLIANCES FALLING THROUGH SO ITIS PRETTY MUCH THE WILDCARD. IT IS UP FOR GRABS.AS FAR AS MODI IS CONCERNED, HE HAS DECLARED A WIN ON THE BACKOF EXIT POLLS. WE'RE EXPECTING, OR RATHER,THEY ARE EXPECTING BJP AND ALLIES TO WIN 350 SEATS. WE WENT TO BJP HEADQUARTERSJUST YESTERDAY TO GET A SENSE OF THE MOOD AT THE HEADQUARTERS.AND OF COURSE THEY WERE.

PREPARING FOR CELEBRATIONS.THEY WERE PUTTING UP BUNTINGS, COLORS OF GREEN AND ORANGE,COLORS OF THE PARTY PRETTY MUCH EVERYWHERE.SO THEY ARE WAITING TO CELEBRATE.WE KNOW MODI IS EXPECTED TO MAKE HIS WAY TO HQ AT 6:30 P.M.HE WILL BE ADDRESSING TENS OF THOUSANDS EXPECTED TO BE THERE.SO WE WILL BRING YOU WHAT HE SAYS LATER ON. HAIDI:MODI HAS BEEN LOOKING FOR A SUPER MAJORITY.WHAT HAS WORKED IN HIS FAVOR? HASLINDA:WELL, ACTUALLY, MODI HIMSELF –.

WELL, THEY CALL IT THE MODICULT, MODI VISION, THE MODI PLAN.REMEMBER, THIS IS THE MAN THAT HAS TAKEN INDIA TO 8% GDPGROWTH, THE FASTEST GROWING ECONOMY AMONG THE G20 NATIONS.HE HAS A VISION AS WELL. REMEMBER, WHEN HE STARTEDCAMPAIGNING 10 YEARS AGO, WHEN HE RAN FOR OFFICE 10 YEARS AGO,HE PROVIDED HOPE IN 2019. IN THAT ELECTION HE PROVIDED AVISION OF GROWTH, AND NOW A VISION FOR THE FUTURE.HE WANTS INDIA TO BE A MIDDLE INCOME STATE BY 2047, AND THATMEANS GROWING AT 9% FOR THE.

NEXT 20 YEARS. AMBITIOUS? YES. BUT MODI SAYS HE HAS A PLAN.EH — AND HE CRISSCROSSED THE COUNTRY DURING THE CAMPAIGNPERIOD AND HE EXPLAINED HIS VISION AND PRETTY MUCH GOT THEHEARTS AND MINDS OF THE PEOPLE. SO, MODI FRONT AND CENTER INTHIS ELECTION. HE IS THE MOST POPULAR LEADERIN INDIA AND IF HE DOES WIN, HE WILL BE THE LONGEST RUNNINGPRIME MINISTERS SINCE NERU, WHO GOVERNED. FOR 17 YEARS. . SHERY:HE FACED AN OPPOSITION ALLIANCE OF MORE THAN 20 PARTIES.HOW DID THEY DO AND WHAT ARE.

THE IMPLICATIONS FORPOLICYMAKING IN INDIA? HASLINDA: WHEN IT COMES TO THEOPPOSITION, THEY HAVE REJECTED THE EXIT POLLS.THEY SAY THEY THEMSELVES CAN GARNER 292 SEATS.THAT WOULD MEAN THEY HAVE A MAJORITY.BUT THE OPPOSITION PARTIES HAVE BEEN LACKLUSTER AND UNTIL THISPARTICULAR ELECTION, THEY WERE PRETTY MUCH DIVIDED.REMEMBER THAT THEY HAVE COME UNDER ONE UMBRELLA UNDER INDIA,THAT IS WHAT THEY'RE CALLING THEMSELVES.IT IS BEING LED BY THE CONGRESS.

PARTY, BUT CONGRESS HAS BEENSADDLED WITH CORRUPTION SCANDALS AND PEOPLE SAY THAT ITHAS LACKED THE VISION THAT MODI AND THE BJP HAVE HAD.SO THEY ARE UNDER A LOT OF PRESSURE TO PERFORM AND WE HAVETO WAIT AND SEE WHAT TRANSPIRES AND WHETHER OR NOT THEY HAVEMANAGED TO SWAY THE HEARTS AND MINDS OF THE PEOPLE. HAIDI:HASLINDA AMIN THERE IN NEW DELHI.WE WILL HAVE MORE ANALYSIS COMING UP ON THE INDIANELECTION OUTCOME LATER TODAY AT THOSE TIMES.YOU CAN ALSO TURN TO YOUR.

BLOOMBERG FOR MORE ANALYSIS. SHERY:HERE'S THE TOP GEOPOLITICAL STORIES TODAY.ISRAELI PRIME MINISTER BENJAMIN NETANYAHU HAS REPEATED THATTHERE WILL BE NO PERMANENT CEASE-FIRE IN THE WAR AGAINSTHAMAS IN GAZA UNTIL ISRAEL'S CONDITIONS ARE MET.BUT HE SAYS ISRAEL IS WILLING TO PAUSE HOSTILITIES FOR THESAKE OF HOSTAGES. PRESIDENT BIDEN LAST WEEKPROPOSED A THREE-PHASE PEACE PLAN WHICH INCLUDED A TEMPORARYTRUCE AND EVENTUAL PERMANENT.

CEASE-FIRE.SOUTH KOREA IS MOVING TO SUSPEND A BORDER AGREEMENT WITHNORTH KOREA AFTER PYONGYANG SENT NEARLY 1000 RUBBISH-FILLEDBALLOONS INTO THE SOUTH. THE 2018 AGREEMENT WAS AIMED ATREDUCING MILITARY TENSIONS, BUT PYONGYANG DECLARED LAST YEAR ITWAS WITHDRAWING SEOUL'S DECISION TO — MORE AHEAD.THIS IS BLOOMBERG. ♪ SHERY:TAKE A LOOK AT HOW JAPANESE AUTOMAKERS ARE TRADING.BROAD DOWNSIDE PRESSURE ACROSS THE NIKKEI.RIGHT NOW WE ARE SEEING A.

LITTLE BIT OF A MIXED PICTUREWHEN IT COMES TO THOSE CARMAKERS.OF COURSE WE ARE WATCHING VERY CLOSELY SUSPENSION OF DELIVERYAND SALE OF SIX VEHICLE MODELS ACROSS JAPAN AS A SAFETYSCANDAL ESCALATES. THE TRANSPORT MINISTRY SAYSTOYOTA, HYUNDAI, AND MAZDA ARE AMONG FIVE CARMAKERS THATFALSIFIED OR MANIPULATED CERTIFICATION DATA.FOR MORE LET'S BRING IN SENIOR EDITOR REED STEVENSON IN TOKYO. HOW DAMAGING ARE THESEALLEGATIONS AND WHAT DO WE KNOW.

AT THIS POINT? REED:ESSENTIALLY A FEW MONTHS AGO WE THOUGHT THIS WAS ALL OVER.THE TOYOTA CHAIRMAN HELD A PRESS CONFERENCE SAYING THECOMPANY WAS GOING TO GO BACK TO BASICS AND REALLY TAKE A LOOKAND WRITE ITSELF. THEN JUST A FEW MONTHS LATER WEHAD A WIDENING SCANDAL. IN TERMS OF THE SHARES, WE HAVENOT SEEN A HUGE REACTION. HONDA DOES SEEM TO BE THE WORSTHIT. TOYOTA IS DOWN AROUND 1%, 1.4%.BUT OBVIOUSLY WHAT IS GOING TO HAPPEN NOW IS THIS RAID BOTH ATTOYOTA'S HEADQUARTERS AND MAZDA.

AND HONDA AS WELL.THAT IS ALSO A PERCEPTION PROBLEM THAT THEY ARE GOING TOHAVE TO DEAL WITH. THE ISSUE HERE OF COURSE ISCERTIFICATION. WE ARE NOT TALKING ACTUALDEFECTS OR SOMETHING THAT IS GOING TO LEAD TO A RECALL.TO A CERTAIN EXTENT YOU MIGHT EVEN ALSO ASK THE QUESTION, ARETHE STANDARDS TOO HIGH, BECAUSE THE CARS ARE SAFELY ON THEROADS. BUT IT IS ESSENTIALLY A PERCEPTION PROBLEM ANDSOMETHING THAT AT THIS POINT, WE DON'T KNOW HOW MUCH FURTHERIT IS GOING TO GO.

WE THOUGHT IT WAS OVER AND NOWWE ARE STILL SEEING THIS KIND OF NEWS TRICKLE OUT. HAIDI: IN TERMS OF REPUTATIONALDAMAGE, CAN IT BE CONTAINED AT THIS POINT? REED:THAT IS HARD TO SAY. WE THOUGHT IT WAS CONTAINED AFEW MONTHS AGO BUT NOW WE ARE BACK HERE TALKING ABOUT THIS.AT THIS POINT I WOULD GUESS DON'T BE SURPRISED IF YOU SEEMORE NEWS LIKE THIS WHICH IS GOING TO CAST AND NEGATIVESENTIMENT OVER THE AUTOMAKERS AND POTENTIALLY THEIR STOCK.BUT ALSO, INVESTORS HAVE BEEN.

BIDDING UP TOYOTA SHARES QUITESIGNIFICANTLY THIS YEAR. MAINLY BECAUSE THE CARS ARESELLING WELL, MOST OF THE CARS ARE SELLING WELL. AND IN FACT THIS IS MORE OF AJAPANESE CERTIFICATION ISSUE SPECIFIC TO THE MARKET ASOPPOSED TO THE ACTUAL SAFETY OF THE VEHICLES.ACTUALLY, 11 MILLION SOLD BY TOYOTA ALONE LAST YEAR ON THEROADS. SHERY:SO WHAT ARE THE IMPLICATIONS FOR THE BROADER INDUSTRY,WHETHER IT IS FOR AUTOMAKERS OR.

SUPPLIERS?BUT AT THE SAME TIME, PERHAPS THE CERTIFICATION PROCESS INITSELF? REED: WELL, THE IMPLICATION,ESPECIALLY FOR THE SUPPLIERS, IS THAT AS TOYOTA AND OTHERSARE ORDERED TO HALT SOME OF THEIR PRODUCTION LINES, THEREIS GOING TO BE AN IMPACT ON THE SUPPLIERS BECAUSE THEY ARE NOTGOING TO GET PAID WHILE PRODUCTION IS HALTED. IN FACT, THE MAZDA CEO SAIDYESTERDAY THAT THEY WOULD COVER THOSE COSTS FOR THE SUPPLIERSAND AT LEAST KEEP THEM SORT OF.

INSULATED AGAINST SOME OF THESEISSUES. AND I WOULD NOT BE SURPRISED IFTOYOTA TOOK SIMILAR MEASURES TO KEEP THEIR SUPPLIER NETWORKKIND OF GOING ALONG. IN FACT THEY HAVE DONE THISBEFORE AND IT IS CRITICAL ONCE THEY GET BACK ON TRACK AND TRYTO KEEP PRODUCTION GOING AT SIMILAR LEVELS. HAIDI: REED STEVENSON TAKING A LOOK ATSOME OTHER HEADLINES. BILL ACKMAN'S WEALTH HAS HIT $8BILLION AFTER INVESTORS PUT $1 BILLION INTO HIS HEDGE FUND.THE EVALUATION NEXT PERSHING.

SQUARE ONE OF THE MOST HIGHLYVALUED HEDGE FUNDS IN THE BLOOMBERG INDEX OF THE FIRSTTIME HE HAS BEEN IN THE RANKING OF THE WORLD'S 500 WEALTHIESTINDIVIDUALS. U.S. PRIVATE EQUITY GIANT KKR ISCONSIDERING ENTERING THE PRIVATE CREDIT MARKET IN JAPAN.THE COMPANY SAYS IT WANTS TO PROVIDE AN ALTERNATIVE TO BANKLOANS SINCE MOST LENDING EFFORTS FOR JAPANESE COMPANIESHAVE BEEN DONE OVERSEAS. IN ADDITION TO PRIVATE CREDITJAPAN IS ALSO THE DESTINATION FOR ABOUT 40% OF KKR'SINVESTMENT IN ASIA.

BLOOMBERG HAS LEARNED CHEVRONHAS HALTED LNG PRODUCTION AT PART OF THE KEY FACILITY INAUSTRALIA. THE PLANT HAD ONLY RESUMED FOROUTPUT LAST FRIDAY FOLLOWING MAINTENANCE DURING MOST OF MAY.POTENTIAL PRODUCTION SLOWDOWN COMES WITH EUROPEAN GASSUPPLIES AT RISK AFTER AN OUTAGE AT A PLANT IN NORWAY. TAKING A LOOK AT HOW WE ARESETTING UP FOR THE OPEN IN THE EUROPEAN SESSION.PRETTY LACKLUSTER LEAD FROM BOTH U.S.SESSION AND HERE IN ASIA IN THE.

FIRST HOUR OR SO OF TRADING.FUTURES POINTING A LITTLE LOWER. ALSO SEEING FURTHER DOWNSIDEFOR GERMAN DAX FUTURES. WE DID SEE A PRETTY BUOYANT DAYIN A PREVIOUS SESSION, EUROPEAN STOCKS GAINING, REALLY AREBOUND FROM WHAT HAS BEEN A SECOND STRAIGHT WEEKLY DECLINE.A LOT OF INVESTORS POTENTIALLY ON THE SIDELINES AS A TENSIONSTURN TO THE PIVOTAL ECB MEETING LATER THIS WEEK.WE HAVE SEEN THE LIKES OF CONSTRUCTION, TECH, TELECOMSOUTPERFORMING. SOME WEAKNESS IN HEALTH BUT ITLOOKS LIKE WE ARE SETTING UP.

FOR ANOTHER DAY OF LACKLUSTERTRADING. SOME OF THAT SENTIMENT ALSOFADING FROM ASIA'S PMI NUMBERS THAT WERE GENUINELY QUITEPOSITIVE DESPITE THE REBOUND STRUGGLE IN CHINA.WE HAVE MORE AHEAD ON THE ASIA TRADE. THIS IS BLOOMBERG. ♪ HAIDI:30 MINUTES INTO THE MARKET OPEN. THESE ARE THE TOP STORIES YOUNEED TO KNOW. INDIA SET TO BEGIN COUNTINGVOTES IN A FEW HOURS. INVESTORS ALREADY CHEERING ATHIRD TERM VICTORY FOR PRIME.

MINISTER NARENDRA MODI.EXIT POLLS PREDICTED A LANDSLIDE VICTORY FOR THERULING BJP PARTY AND ITS ALLIES. U.S.TREASURY YIELDS SINKING AS WEAK FACTORY ACTIVITY FUELSSPECULATION. THE CENTRAL BANK INDICATED THETIMING OF THE NEXT MOVE WILL DEPEND ON DATA FROM FRIDAY'SU.S. JOBS REPORT AS THE NEXT BIG FOCUS.THE NEW YORK STOCK EXCHANGE IS CANCELING BAD TRADES INREVIEWING OTHERS AFTER A SOFTWARE UPDATE GLITCH.THE DISRUPTION IS THE THIRD TO.

HIT THE U.S.MARKETS IN THE PAST WEEK. IT HAS SINCE BEEN RESOLVED.SHERY: WE ARE LIVE TODAY AT THE S&PDOW JONES INDICES JAPAN ETF CONFERENCE IN TOKYO, WHEREINVESTORS ARE LOOKING AT THE GROWING IMPORTANCE OF U.S.AND GLOBAL EQUITIES IN JAPANESE PORTFOLIOS AND VICE VERSA.JOINING US NOW IS DAN DRAPER, CEO AT S&P DOW JONES INDICES.THANK YOU FOR JOINING US TODAY AND HAVING US AT YOURCONFERENCE. LET'S TALK A LITTLE BIT ABOUTTHE FIRST PART OF THAT.

SENTENCE, WHICH IS THEIMPORTANCE OF U.S. AND GLOBAL EQUITIES IN JAPANESEPORTFOLIOS. TELL US A LITTLE BIT ABOUT HOWWHAT SORT OF TRENDS YOU ARE SEEING THIS YEAR.WE KNOW THAT THIS IS AN ANNUAL CONFERENCE, YOUR 16TH. DAN:IT IS FANTASTIC TO BE BACK IN TOKYO.AS YOU SAID, THIS IS OUR 16TH YEAR AND THIS IS OUR BIGGEST INTERMS OF ATTENDEES AND PEOPLE WHO SIGNED UP.THE INTEREST LEVEL INVESTING IN JAPAN BUT ALSO JAPANESEINVESTORS TO LOOK ELSEWHERE FOR.

INTERNATIONAL INVESTMENTS.WE HAVE NOTICED IN OUR S&P WORLD INDEX OVER THE LASTDECADE, THE WEIGHTING OF U.S. EQUITIES HAS GROWN FROM LESSTHAN 50% OF A WORLD INDEX TO NOW 60%.THE CONCENTRATION WE HAVE HEARD ABOUT BUT ALSO THE DEMAND FORU.S. EQUITIES HAS GROWN SUBSTANTIALLY.AND WE ARE SEEING THAT DEMAND HERE IN JAPAN. SHERY:OF COURSE A LOT OF THAT HAS TO DO WITH TECH BEHEMOTHS.I GUESS IT IS IMPORTANT NOW MORE THAN EVER FORDIVERSIFICATION IN THIS STORY.

SO HOW DOES JAPAN PLAY INTOTHAT? DAN: JAPAN THROUGH THE MARKETREFORMS STARTED SEVEN OR EIGHT YEARS AGO, WHICH HAS MOVEDFORWARD NOW WITH CHANGES IN MONETARY POLICY.YOU HAVE SEEN WAGE GROWTH MORE RECENTLY.SO THERE IS OPTIMISM OVER THE MEDIA TERM FOR INVESTING INJAPAN. WE HAVE SEEN FLOWS COME HERE.DOMESTICALLY YOU HAVE SEEN SIGNIFICANT REFORM.THE INVESTMENT SAVINGS ACCOUNTS HAVE GROWN AND EXPANDED.BOTH FOR DOMESTIC INVESTORS AND.

INTERNATIONAL, JAPAN IS TOP OFMANY INVESTORS LESS. SHERY: YOU HAVE A LOT OF OPTIMISM WHENIT COMES TO JAPANESE ASSETS, ESPECIALLY WHEN YOU'RE THINKINGOF COMPARING IT WITH CHINA AND THAT DIVERSIFICATION AWAY FROMWHAT IS HAPPENING THERE. AT THE SAME TIME WHEN IT COMESTO THE JAPANESE ECONOMY, THERE IS A LITTLE BIT OF SKEPTICISM IFEEL NOW THAT I AM IN TOKYO ABOUT WHERE THE ECONOMY ISHEADED FROM HERE AS JAPANESE PEOPLE ARE HAVING A HARDER TIMEWITH A CHEAPER YEN AND HIGHER COST OF LIVING.ARE YOU SEEING THAT DIVERGENCE.

AND IS THAT MATTER TO INVESTORSWHO ARE LOOKING GLOBALLY ON WHERE TO PUT THEIR ASSETS? DAN:IT DOES. THE DOMESTIC ECONOMY SEEMED TOBE PULLING OUT OF THE LONG-TERM DEFLATIONARY TRENDS.OBVIOUSLY MORE OPTIMISM TO START THE YEAR.THEN WE HAVE SEEN SOME SLOWDOWN IN THE LAST COUPLE OF MONTHS.I WOULD SAFER JAPANESE COMPANIES, YOU THINK ABOUTINVESTING IN EQUITY PRICES, THERE REFORMS ON GOVERNANCEHAVE BEEN DONE. ALSO MANY MANUFACTURERS ONJAPAN HAVE OFFSHORE OPERATIONS.

THE CURRENCY IS LESS OF ANOPERATION FOR THEM. YOU HAVE NOW SEEN THAT INADDITION TO MORE CONFIDENCE WITH HER GOVERNANCE, PROXYVOTING, AND A LITTLE MORE TRANSPARENCY.MORE RECENTLY YOU HAVE AT THE STOCK EXCHANGE AND OTHERSENCOURAGING JAPANESE COMPANIES TO BE MORE EFFICIENT, MORESHARE BUYBACKS, MORE CONSISTENT DIVIDEND POLICIES.RETURNING CAPITAL TO SHAREHOLDERS, MORE ACCUSTOMEDTO THAT IN THE U.S. HAIDI: SOME OF THE INTEREST IN THESEMARKETS IN JAPAN AND INDIA HAS.

COME AT THE EXPENSE OF CHINA.I AM WONDERING WHAT YOU'RE HEARING IN TERMS OF THEINTEREST AND THE POTENTIAL FLOWS INTO INVESTORS WANTINGSOME SORT OF EXPOSURE TO CHINA DESPITE ITS ONGOING TROUBLES.DAN: OBVIOUSLY THERE HAS BEEN ARALLY THIS YEAR. PARTICULARLY IN CHINA.WE ARE SEEING INVESTORS SEARCHING GLOBALLY FORDIVERSIFICATION. AS I MENTIONED EARLIER, THEREHAS BEEN A VERY LARGE CONCENTRATION, THESEMAGNIFICENT 7 NAMES AND.

INDUSTRIES LIKE — AND INDICESLIKE THE S&P 500. MEMBERS ARE LOOKING FORDIVERSIFIED EMERGING MARKETS VALUATION-WISE TEND TO BE MOREATTRACTIVE IN SOME CASES. RIGHT NOW WE CONTINUE TO SEETHE MOMENTUM FOCUSED ON FOR EXAMPLE IN THE U.S., THEFEDERAL RESERVE POLICY, AND AGAIN FROM AN EARNINGSPERSPECTIVE YOU CONTINUE TO SEE THE LARGE TECHNOLOGY NAMES,THEMES LIKE GENERATIVE AI CONTINUE TO DOMINATEMARKETPLACES. I THINK THOSE INVESTORS WHO CANPERHAPS TAKE A MORE MEDIUM TO.

LONGER TERM VIEW ARE LOOKINGFOR EMERGING AND OTHER MARKETS WHERE PERHAPS VALUATIONS AREMORE ATTRACTIVE. HAIDI: WHAT IS NEXT IN TERMS OF THESTRATEGY IN THE BUSINESS PERHAPS BEYOND CORE EQUITYINDICES? DAN: S&P GLOBAL, WHO OWNS S&P DOWJONES INDICES, PURCHASED IHS MARKET IN 2022.THAT GAVE S&P DOW JONES INDUSTRIES — INDICES FIXEDOUTCOME. BOTH INVESTMENT-GRADE ANDHIGH-YIELD. PARTICULARLY USING THAT INCERTAIN CUSTOMER SEGMENTS LIKE.

INSURANCE, WHICH IS A VERYIMPORTANT SEGMENT FOR US. NOW USING SIMMONS LIKE ETF'SMORE IN THEIR GENERAL ACCOUNTS. ALSO WITH HIGHER INTEREST RATESIN MANY PARTS OF THE WORLD, BEING ABLE TO NOW USE INDICESMORE IN FIXED ANNUITIES FOR THE FIRST TIME REALLY IN ADECADE-PLUS. REALLY STARTED TO SEE THEBENEFITS OF THAT MERGER BUT OFFERING MULTIPLE ASSET CLASSESTOGETHER FOR DIVERSIFICATION BENEFITS. SHERY:OF COURSE WE KNOW JAPANESE PENSIONS ARE HUGE MARKET MAKERSHERE AND ACROSS THE WORLD.

WHAT CAN YOU TELL US IN TERMSOF YOUR BUSINESS PARTNERSHIPS AND COLLABORATIONS WITH ASSETMANAGERS GLOBALLY? DAN: TO STARTED WITH OUR PARTNERSHIPWITH JP ASK OVER 20 YEARS AGO. AND THEN LOCALLY WE HAD ASIGNIFICANT PARTNERSHIP START WITH G PIF, THE WORLD'S LARGESTPENSION WEALTH FUND IN 2018 WHERE WE PARTNER ON CARBONEFFICIENT INDUSTRIES. BRINGING A SUSTAINABILITY STORETO THIS MARKETPLACE AND THAT HAS GROWN.WE HAVE ALSO BEEN ABLE TO LEVERAGE MANY OF THE LOCALASSET MANAGERS BROKERAGE HOUSES.

AND WILL THEN LOCAL PRODUCTS.PARTICULARLY THEY WANT TO BRING THE S&P 500 AND DIFFERENTVERSIONS OF THAT. DIVIDEND ENHANCED STRATEGIESHAVE BEEN VERY POPULAR WITH THE STRONGER DOLLAR AS WELL BUTALSO HERE IS TO DIVERSIFY LIKE FIXED INCOME THAT WE TALKEDABOUT. I THINK THE PARTNERSHIP ISGROWING BUT WE ARE STARTING TO SEE MORE DEMAND, OR EVEN RETAILINVESTORS ARE MOVING OUT OF TRADITIONAL SAVINGS ACCOUNTSNOW INTO INVESTMENT PORTFOLIOS. IT IS EXCITING. SHERY:DAN DRAPER, THANK YOU SO MUCH.

FOR JOINING US TODAY, THE CEOAT S&P DOW JONES INDICES. THANK YOU SO MUCH FOR HAVING USAT YOUR CONFERENCE IN TOKYO, THE 16TH ANNUAL JAPAN ETFCONFERENCE. WE HAVE BEEN TALKING A LOTABOUT THE OPTIMISM ON THE JAPANESE EQUITY MARKETS.BUT THAT RALLY MAY BE LOSING SOME MOMENTUM.STILL AHEAD WE WILL TELL YOU WISE SOME INVESTORS ARE HAVINGSECOND THOUGHTS ABOUT THE STOCKS. THIS IS BLOOMBERG. ♪ SHERY: TAKE A LOOK AT HOW ASIANMARKETS ARE TRADING.

SEEING DOWNSIDE PRESSURE ACROSSTHE BOARD AS WE SEE THE NIKKEI AND THE KOSPI LOSING GROUND,ALMOST .4% FOR JAPANESE STOCKS. THIS OF COURSE EXTENDINGDECLINES WE SAW ON THE PREVIOUS SESSION.SOME OF THOSE AUTOMAKERS REALLY TAKING A HIT AS AN ONGOINGCRISIS OF TRUST DEEPENS WITH THE FINDINGS OF SOME OF THESECARMAKERS AND THEIR CERTIFICATION PROCESS.WHEN IT COMES TO THE KOSPI, IT IS ALSO ON THE DOWNSIDE. THE S&P 500 — THE ASX 200,EXCUSE ME, NOT DOING MUCH AT.

THE MOMENT.WHEN IT COMES TO THE JAPANESE EQUITY MARKETS, INVESTORS SEEMTO BE HAVING SOME SECOND THOUGHTS ABOUT BUYING MOREJAPANESE STOCKS AT THESE CURRENT LEVELS.LET'S DISCUSS THIS WITH ASIAN EQUITIES REPORTER WE NEED SUE.WE ARE NOW SEEING THAT RISING BOND YIELDS DAMPENING THE BITOF –DIVIDEND APPEAL OF EQUITIES.TELL US MORE ABOUT WHAT IS THE THINKING AMONG INVESTORS RIGHTNOW. >> RIGHT NOW IT IS TWO THINGS.

WE ARE SEEING THE BOND YIELDSGOING UP BECAUSE OF THE MORE HAWKISH BANK OF JAPAN THINKINGTHEY ARE GOING TO RAISE RATES EARLIER THAN EXPECTED.THAT HAS DRIVEN THE 10 YEAR BENCHMARK TO GO UP OVER THAT 1%KEY LEVEL. ON THE OTHER HAND YOU ARESEEING THE DIVIDEND YIELDS IN JAPAN FALLING.THAT IS NOT BECAUSE THE DIVIDEND IS ACTUALLY GOING DOWN.THAT IS BECAUSE YOU HAVE ACTUALLY COMPANIES PUSHING THEDIVIDEND YIELDS HIGHER UP BECAUSE OF THE CORPORATEGOVERNANCE REFORM.

BUT THE STOCK PRICES AREACTUALLY RISING AND THAT IS WHY THE BOND YIELDS, THE YIELDS OFTHE STOCKS ARE COMING DOWN. SO IT PUTS CROSS ASSET — ITPUTS CROSS ASSET INVESTORS IN A SITUATION TO CONSIDER THATBONDS ARE STARTING TO BECOME MORE ATTRACTIVE WHEN WE ARECOMPARING THE RETURNS OVER STOCKS. HAIDI:WHAT HAS BEEN THE IMPACT ON STOCKS THEN? WINNIE: VERY INTERESTINGLY, UNTIL NOWWE ARE ACTUALLY SEEING THAT THE RISING BOND YIELDS ARE POSITIVEFOR JAPANESE FINANCIAL STOCKS.

AND THAT IS PUSHING THE TOPIXTO GO UP. BUT OVER THE PAST YEAR, WE HAVESEEN SOMETHING TO REVERSE. BECAUSE INVESTORS ARE NOWTHINKING THAT MAYBE THEY SHOULD PUT THEIR MONEY IN BONDSINSTEAD OF STOCKS. SO THAT IS ADDING MORE PRESSURETO ALREADY THE RANGE BOUND JAPANESE STOCKS AS WE ARESEEING ON THE NEGATIVE IMPACTS OF THE HIGHER FOR LONGER FEDRATE AND MONEY FLOWING OUTSIDE OF JAPAN AND INTO CHINA.THOSE NEGATIVE FACTORS WEIGHING ON JAPANESE STOCKS.THAT IS LIKELY TO CONTINUE.

SOME ANALYSTS ARE SAYING THATUNTIL THE YEAR AND WE MIGHT SEE THE NIKKEI STRUGGLE AROUND THE38,000 TO THE 40,000, WHICH IS LOWER THAN THE RECORD HIGH. THAT KIND OF NEGATIVE SENTIMENTAROUND STOCKS IS SOMETHING INVESTORS ARE CONTINUING TOWATCH. HOWEVER, WHEN IT COMES TO LONGER TERM, THE ATTRACTIVENESSOF STOCKS IS STILL THERE BECAUSE IT IS DRIVEN BY MOREFUNDAMENTAL FACTORS PRETTY YOU HAVE CORPORATE GOVERNANCEREFORM STILL ONGOING AND SOME INVESTORS SAY IF JAPAN ISACTUALLY EXITING DEFLATION AND.

HEADING INTO INFLATION, THATWILL BE GOOD FOR STOCKS OVER BONDS BECAUSE COMPANIES AREABLE TO RAISE PRICES. SO OVERALL THEM YOU LOOK ATJAPANESE STOCKS AND BONDS, WE HEAR THAT A LOT OF INVESTORSSTILL FOR NOW PREFER STOCKS, ESPECIALLY CONSIDERING THATJAPANESE BONDS WILL NOT REALLY RISE AS MUCH. HAIDI:WINNIE HSU THERE. TAKING A LOOK AT ENERGYMARKETS, WE ARE CONTINUING TO SEE DOWNSIDE PRESSURE.OPEC-PLUS UNEXPECTEDLY ROLLING OUT A PLAN TO RESTOREPRODUCTION TO THE MARKET LATER.

THIS YEAR.IT KINDS OF — IT KIND OF ADDS TO THE BEARISH MOMENTUM WE HAVESEEN FOR OIL PRICES AS GEOPOLITICAL RISKS DID NOTREALLY MATERIALIZE AND THAT DEMAND-SIDE PARTICULARLY WHENIT COMES TO CHINA, DEMAND HAS BEEN EBBING.BOTH BRENT AND YIELD TRADED CRUDE COMING UNDER PRESSURE.LET'S BRING IN STEPHEN STAPCZYNSKI.IS OPEC BASICALLY THROWING IN THE TOWEL ON ITS $100 A BARRELOIL VISION? IS THIS A STRATEGIC SHIFT OR ATACTICAL RETREAT?.

WHAT DO YOU MAKE OF THIS?STEPHEN: IT MIGHT BE KIND OF ALL OF THEABOVE. COULD READ IT ANYWAY. IN GENERAL OPEC-PLUS IS MAKINGSURE THAT THEY ARE GETTING THE MARKET IN A BALANCED VIEW.THEY HAVE DONE THAT FOR MONTHS. THEY TRULY BELIEVE THE MARKETNEED MORE BARRELS TO BALANCE IT. AT THE SAME TIME YOU COULDARGUE THAT THE MEMBER STATES WANT TO BE PUMPING MORE.THEY WANT TO BE SELLING MORE. THE $100 A BARREL IS REALLYSOMETHING THAT SAUDI ARABIA YOU COULD ARGUE WAS FIGHTING FOR,BUT OPEC-PLUS IS MUCH MORE THAN.

JUST SAUDI ARABIA.SO WHEN YOU BREAK DOWN THE DEAL, THE OPEC-PLUS AGREEMENTOVER THE WEEKEND, YOU DO HAVE THE CURBS EXTENDING INTO THIRDQUARTER. BUT AFTER THAT YOU SEE THATSTARTING TO UNWIND QUITE RAPIDLY.BY THE END OF THE YEAR THEY WILL BE PUMPING 500,000 BARRELSA DAY MORE THIS TIME NEXT YEAR IT WILL BE ABOUT 1.8 BILLIONBARRELS OF — 1.8 MILLION BARRELS A DAY MORE.AS MY COLLEAGUE SAID FROM BLOOMBERG OPINION, ADDING MOREBARRELS THE MARKET IS BEARISH,.

NOT BULLISH.THAT IS GOING TO PUSH PRICES LOWER.THAT IS A REACTION YOU HAVE SEEN THE LAST TWO DAYS WITHBRENT OIL BELOW $80 FOR THE FIRST TIME IN A WHILE.AND THE IDEA OF $100 NOT GOING BACK.THAT ALL BEING SAID, OPEC-PLUS HAS SOME OF THE BEST ANALYSTS. THEY'RE LOOKING TO SEE WHERETHINGS COULD BE TIGHTER. THEY HAVE MADE CORRECT CALLS INTHE PAST. THIS COULD BE A PREEMPTIVE MOVE FOR THEM TO SEEIF THE MARKET COULD BE TIGHTER.

HERE BUT CLEARLY MONEY TRADERSLOOK AT THIS, IT DOES LOOK TO BE A RETREAT TO A DEGREE AND ANADMISSION THAT THEY ARE TRYING TO GET THEIR MARKET SHARE BACK,ESPECIALLY FROM OTHER PRODUCERS LIKE U.S. SHALE AND EXPORTERS.ALL OF THAT TOGETHER DOES APPEAR TO BE PUSHING MARKETSLOWER AND IT IS LIKELY IT WILL BE HARDER FOR BRENT TO REALLYRISE BACK UP INTO THE HIGH $80, $90 RANGE AGAIN. HAIDI:HOW DOES CHINA FACTOR IN HERE? WE HAVE ALSO SEEN HUGE LNGDEMAND STARTING TO COOL OFF. STEPHEN: RIGHT.I THINK CHINA IS AN INTERESTING.

STORY. FOR THE OIL DEMAND, OIL LEADSHAVE BEEN KIND OF NOT AS ROBUST AS I THINK A LOT OF PEOPLE WEREEXPECTING AT THE BEGINNING OF THE YEAR. FOR LIQUEFIED NATURAL GAS, THEIMPORTED AND HAVE TO SELL ON THE DOMESTIC MARKET.RIGHT NOW GLOBAL LNG MARKETS TIGHT, RUSSIAN HAS — GLOBALLNG MARKETS HAVE GOTTEN PRICIER OVER THE LAST FEW WEEKS ANDMONTHS AS WELL BECAUSE OF THE HOTTER WEATHER.

BECAUSE LNG PRICES ARE HIGHER,CHINA IS DECIDING UP TO TAKE LNG INTO THE COUNTRY WHERE THEYWOULD HAVE TO SELL IT TO A LOWER PRICE.INSTEAD THEY ARE SAYING HOW CAN WE SELL THIS INTO THE SPOTMARKET INTO THE MARKET AT A HIGHER PRICE.CHINA IT WILL BE TAKING LESS OF THAT LNG AND THAT WILL PROVIDERELIEF FOR NATURAL GAS MARKETS. I HAVE TO SAY OVERNIGHT THEREWAS AN OUTAGE AT A NORWEGIAN PLANT BOOSTED EUROPEAN GASPRICES AS MUCH AS 13% AT ONE POINT. NOW ASIAN LNG PRICES ARETRADING AT THE HIGHEST LEVEL SO.

FAR THIS YEAR.ALTOGETHER, IT IS AN INTERESTING DYNAMIC. GAS MARKETS ARE GETTING TIGHTERINCREASINGLY, WHEREAS OPPOSITELY YOU HAVE OIL LOOKINGA BIT LOOSER. SHERY:STEPHEN STAPCZYNSKI THERE. WE HAVE MORE ON THE ASIA TRADE.THIS IS BLOOMBERG. SHERY: THE WEAKER YEN HAS FEE –FUELED A SURGE IN TOURISM IN JAPAN BUT LOCAL WAGES ARESTRUGGLING TO KEEP UP WITH THE BROADER RISE IN COSTS.I SAT WITH THE TOKYO GOVERNOR.

AND ASKED WHETHER THE CITY ISABLE TO HANDLE THE PRESSURE FROM ITS INFLUX OF VISITORS. >> WELL, IT'S A GOOD PRESSURE.IN MARCH OF THIS YEAR FOR THE FIRST TIME SINCE STATISTICSBEGAN THE NUMBER OF VISITORS TO JAPAN EXCEEDED 3 MILLION. AND TRAVEL EXPENDITURES WITHINJAPAN REACHED 1.8 TRILLION YEN WHICH MEANS $11.4 BILLION U.S.ONLY FOR THE JANUARY AND MARCH PERIOD OF THIS, A QUARTERLYRECORD HIGH. AND HAVING OVERCOME THEPANDEMIC, INBOUND DEMAND IS.

INDEED RECOVERING.AND FROM THE PERSPECTIVE, THE WEAK YEN HAS BEEN A POSITIVEFACTOR. TOKYO WAS EVEN RANKED AS THEWORLD'S TOP TOURIST DESTINATION IN THE TRAVELERS CHOICE AWARDS,BEST OF THE BEST. SHERY: ARE YOU CONCERNED ABOUT TOKYOCITIZENS THAT ALSO HAVE TO FACE HIGHER COST OF LIVING?WHAT SHOULD POLICYMAKERS DO? YURIKO:WELL, ON THE OTHER HAND, TOKYO, AS YOU MENTIONED, TOKYORESIDENTS HAVE BEEN FEELING A LITTLE PRESSURE OF THE WEEKEND– WEAK YEN, AND LONG INCREASE.

IN COMMODITY PRICES, AS YOUPOINTED OUT. AND UNTIL NOW TMG HAS BEENTAKING MULTIPRONGED MEASURES INCLUDING SAFETY NET SUPPORT,AS WELL AS PROMOTING WAGE INCREASES AND PRICE SHIFTING. AND IN THE FISCAL YEAR OF 2024BUDGET, THE LARGEST EVER WITH A PROJECT COST OF $161.9 –0 –OF ABOUT $1 BILLION U.S. AND ENHANCING COUNTERMEASURESAGAINST BUSINESSES. SHERY: WE HAVE BEEN SPEAKING FOR MANYYEARS. DURING ALL OF THAT TIME YOUREALLY HAD THAT GOAL OF MAKING.

TOKYO A GLOBAL FINANCIAL HUB.IT'S BEEN CHALLENGING. ONE RECENT RANKING BY THEGLOBAL FINANCIAL CENTERS INDEX PUTS TOKYO NOT ONLY BEHIND HONGKONG AND SINGAPORE BUT ALSO BEHIND BEIJING AND SEOUL POLL– AND SEOUL. WHAT IS THE ISSUE? YURIKO:WE HAVE BEEN TRYING TO CATCH UP AND TO RENEW OUR SYSTEM. AND SINCE 2017, THE TOKYOMETROPOLITAN GOVERNMENT HAS BEEN IMPLEMENT IN VARIOUSMEASURES. WE HAVE THREE COURT PILLARS –CORE PILLARS.

ONE, MAKING TOKYO A CITY WHEREGLOBAL STARTUPS ARE BORN, AND A CITY WHERE GLOBAL STARTUPS FORBUSINESS IN ENGLISH. I THINK ENGLISH IS VERYIMPORTANT. SHERY: MANY MORE PEOPLE SPEAK ENGLISHTHESE DAYS. YURIKO: SO THIS FEBRUARY TO HELPACHIEVE THE JAPANESE GOVERNMENT'S VISION OF ALEADING ASSET MANAGEMENT CENTER, TOKYO ANNOUNCED ITSELFAS A SPECIAL ZONE FOR ASSET MANAGEMENT BUSINESSES.AT THE END OF LAST MONTH, A FEW DAYS AGO, I ATTENDED A MEETINGREGARDING THE SPECIAL ZONE.

SYSTEM AT THE PRIME MINISTER'SOFFICE WHERE I EXPLAINED THE TMG'S VISION INITIATIVES ANDREQUESTS FOR THE NATIONAL GOVERNMENT.AND SO, MAKING BEST USE OF THE SPECIAL ZONE STATUS, TOKYO WILLATTRACT MORE GLOBAL FUNDS AND HUMAN RESOURCES, TECHNOLOGY,AND INFORMATION, TO BECOME A SUSTAINABLE CITY THAT SERVES ASTHE ASIAN HUB FOR INNOVATION AND FINANCE. SHERY:IF YOU WERE TO HAVE ANOTHER TERM, WHAT WOULD YOU LIKE TOACCOMPLISH? YOU JUST TOLD ME A LAUNDRY LISTOF SO MANY THINGS THAT YOU.

STILL HAVE TO DO FOR TOKYO.YURIKO: WELL, OF COURSE I DID MY BESTEFFORT. TO DO MY BEST EFFORT TO MAKETOKYO GREAT AGAIN. [LAUGHTER] SO THE LAST EIGHT YEARS I DIDMY BEST TO DO THAT. IT IS A CITY OF HUMAN BEINGSBORN AND

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