Transcripts For BLOOMBERG Bloomberg 20240703

That we have not seen since 2007. The 30 year yield in australia, the first time punching 5 , the u. S. Also getting closer to that 5 handle. We are still bleeding when it comes to fixed income markets and that is impacting how we look at equity markets here. The dollar is looking firmer as we continue to see more of these central bankers and policymakers in japan and taiwan and korea talk about how they are watching the ethics moves very closely. And understood take a look at what is going on here as well, lots of commentary coming from the bank of thailands governor, talking about the bought beginning at levels not seen since november of last year. Its now down for three Straight Days against the dolar. Oping 1 down. We have to make a silencing that they will step in it is out of sync with fundamentals, and they have been discussing this with the Prime Minister. They say that the bank has no target level for the currency either. And they go on to say that they need more targeted policies. And seeing the low possibility of a reversal in recovery that is taking place and that recovery is intact, Indian Markets down as well, the rupee age was a record low with 22 per piece of 22 per dollar. Are watching the very japanese yen closely, given that abrupt move overnight, coming off of that now, but certainly there are still a lot of questions on whether there was intervention or not. We have heard from several japanese officials this morning that were declining to confirm whether there was some sort of intervention after we suddenly saw that currency fall on the dolly and after touching 150. Lets go to our japan Korea Economy and government editor. Whether they want to intervene or not, just give go through what policymakers are trying to achieve at this point. Oversee there has been a lot of excitement over that move in the end, it briefly breached at 150 he leveled against the dollar, and there was that free yen move, and so far they have not intervene. From the finance minister suzuki to the chief currency official to the governments government, they have declined to say whether an intervention has happened from japanese authorities. So, it looks like so far what they are playing at, essentially, is keeping creators guessing, and this is kind of a continuation of what they did last autumn. Obscene that was a historic low for last autumn when they intervened to support the yen for the First Time Since the 1990s. But after that initial confirmation that they have intervened, officials basically refused to confirm whether or not they have moved or not. And if that tactic is still going strong now. The crop the logic is probably that as long as investors and traders dont know whether authorities have intervened, there will they will be afraid of that possibility. That, in turn, might mean that authorities will not have to spend so much in order to actually move the markets. . , if they had intervened, im talking about chiefly the u. S. , who could label tokyo as a currency manipulator, but janet yellen has used language which means that they would give them a pass on this one. Exactly, the key here is how the u. S. Will intervene and react to the move, if they had, if they do admit that they have intervened. But they did say that that kind of game a green light in the sense that it is understandable if japanese authorities had moved in order to smooth in volatility. The key here from the japan site is to make sure that this move against excessive ethics moves rather than an intervention that targets the mining the sand nature in particular, and we heard that they will move against any excessive effects, and they dont target any particular level. We are likely to see that sort of rhetoric continued from the japan site. Our correspondent from tokyo on the end and how there could be an intervention there. An independent wealth manager with over 5 billion dollars in client assets here now. He is the bank of japan alongside the minister of finance in tokyo stuck between a rock and a hard is. Place. They are. A lot of this is external factors that are driving or forcing them into action. Whether they intervened or not is a moot point. I think that they probably will not confess. But i think that they are uncomfortable with the direction of the yen and the speed of the depreciation, and they will do what they can to moderate that. Whether they will intervene to a level where they will bring it back down to a certain target level, i think, is difficult to say. Probably unlikely. But they are doing what they can. But it is a structural problem. The japanese bond market is what it is. They have been at zero Interest Rates for two decades. These are structural problems they need to deal with. These things will go away. When you take a look at this is not just a japan problem, its a global problem, this relentless selloff across bond markets. We take all the technicals, and it seems like things are oversold. What is your take on the bond market right now . There is a cyclical aspect and a structural aspect, and from a cyclical perspective, the fed and the central banks, globally, are responding to the realities of high inflation and the persistency of that inflation. That is not a surprise. I think that the market reacted very sharply recently to the reality and the realization that we are going to have Interest Rates higher for longer. If you think about what happened from last year, if you think, you know, the fed, especially on the 10 year, and the short and as well, peaked in october, and then came that down properly, we had a reduction in market units, and we are back under one basis points, we are only barely above where we were last october, around 4. 3 . We are not headed to 420. We are still below the fed funds rate. I think that the market is a little bit complacent. And we see the realization of the higher for longer market yields. And the fed not having taken any action since the end of july, are getting what they wanted which is the market yield rising significantly, with tighten financial conditions which will curtail some excessive demand and maybe even inflation. Thats a good thing. This is where good news is bad news and bad news is good news when it comes to the fed. Do they have to break something, do they have to put the economy into a downturn if they want to solve the inflation problem, and are there signs of cracking already occurring in your view for the u. S. Economy . Yes, i think there are a lot of similarities, you talk about complacency when it comes to inflation and Interest Rates. Maybe we are to the same thing and making the same mistake when it comes to growth. Because growth has been surprisingly resilient, especially in the u. S. This is one of the reasons why the fed is talking artificially and market yields have climbed up so rapidly. Thats something growth is somthing that is at risk as Interest Rates continue to rise at this rate as financial conditions continue to deteriorate. When youre looking through all the data at the margin, in terms of negative growth outlook. Maybe we have avoided a recession this year, but the recession for 2024 is back in play. In the current stage. Would you be a buyer of u. S. Treasuries of the moment, if we were higher for longer, we could see prices also lower for longer. Going back to that cyclical, ma, from a cyclical perspective i mean i say yes, where injury territory where yield levels from an absolute level our attractive. s from a cyclical perspective, if you look beyond 24 months, then treasury yields, especially in the long end, look very attractive. We can time them a little bit better, but if you look at the structural problem, this is why all the talk of bond vigilantes and the fiscal situation, not just in japan and the u. S. But globally, there is a concern that the government has printed too much money, too much debt, and the servicing costs of these high levels of interest is exorbitant. Its an additional pressure to different financial situations, and the outlook of their credit stability is actually deteriorated. There is a structural concern that is rising and that is part of the problem and why he was removed self it was removed so fast. I think that there opportunities arising in the fixed income space. Where is the role of alternatives in an investment portfolio now, samuel . I know that you are watching this closely. Is there something that is nice to have he is nice to have more must have against this backdrop . Alternatives is a space that has always played a part in global allocation, especially with investors. I think it will continue to plague an Important Role in Market Alternatives and hedge funds. As a wealth company, we are seeing increased interest in the space. And talking about the fixed income space, lending and private credit is that one space that continues to look really attractive. In the private credit space, players like carlisle, kkr, is all affording yields that are in the double digits now. And payouts can be a size 8910 percent. There is an attractive sliver of the market which is fairly attractive in the private credit space. Similar read therefrom joining us out of singapore, where watching this thailand market closely here on the back of this breaking that we had on this mall shooting. In bangkok. We heard that this suspect had a modified handgun designed to fire blanks. Youre certainly seeing a kneejerk reaction as most stocks, aviation bangkok airways, we had the bank of thailand. To watch the impact on tourism there. Had a look at thai stocks as well, we are looking at what their teenager shooter, attacker at bangkok Shopping Mall in the capitol mall, two people killed, five others injured. Still ahead, why Asset Management is still positive when it comes to indias mid and small caps despite interest waits interest weighing on global sentiments here. That conversation later on. Lets have a look at first terminal in u. S. Politics, Kevin Mccarthy ousted as speaker of the house, and historic vote. The latest on that fallout coming your way next. U. S. Congress has been plunged into a new power struggle after Kevin Mccarthys removal as house speaker, following a revolt within his own party. Here, he is speaking with washington earlier after becoming the first person ever ousted from the chair. I dont regret standing up for choosing government over grievance. It is my response ability, it is my job. I do not regret negotiating, our government is designed to find compromise. I dont regret my efforts to build coalitions and find solutions. I was raised to solve problems, not create them. Lets bring in our Senior Editor to talk about all of this. Bill, it was one foot to get rid of him, which has never happened before. 15 rounds of voting for him to get the gavel. Of what is the beef against him, is it simply given those 15 rounds, they just dont like him . Well, theres certainly that. Kevin mccarthy said that he thinks that matt gaetz in particular was out to get him. He is the congressman who raised the issue of vacating the speakers chair, and under the rules that mccarthy had agreed to when he became speaker, although it took was for one Single Member to be able to raise that question and force a vote. I think that Kevin Mccarthy knew that this was looming over him, and i think it was probably inevitable given the divides in the Republican Party in the house. But as you have said, it opens up this can of worms, there are already a number of top publicans calling their colleagues and trying to feel out how much support that they may have. The interim speaker, patrick mchenry, has said that they will have a vote, he would like to have a vote week from today on choosing the next speaker. There is going to be a lot of backroom deals being made, a lot of calls being made, trying to figure out who is the one or maybe the top two candidates for that job. The rest of the Republican Party can rally around them. It leaves the house of representatives in a state of chaos, it seems. We are just 40 something days away from another deadline. Were going to have this conversation very soon. Are they going to get their ducks in order before then . They will probably get the leadership ducks in order, but in terms of what the negotiation will be ahead of that november 17 deadline which was just agreed to to prevent another Government Shutdown, that is much harder to say. It is very unlikely that the house can pass all of the Appropriations Bills that it would need to avoid is shut down. I think, unfortunately, we will find ourselves having the same discussions mid november that we were having a week or two ago about how do you cut through this gordian knot and reach a deal, or do you pass some sort of legislation that kicks things down the road a little further, extending the extension, and preventing a Government Shutdown . Im sure were going to have this conversation once again, a Senior Editor joining us with the latest on tc from singapore. We have plenty more ahead, this is bloomberg. Welcome back to earth. Thanks, it was pretty life changing. Dude it was eight and a half minutes. I didnt even get to finish my burrito. Technology lets you vacation in space, but to get work done on earth. You need more than technology. You need cdw. So with the Cisco Hybrid Work environment, we can deliver the same Network Experience to all your offices. Space spaghetti. No. Securely connecting your team from anywhere. Houston we. Have a solution. We get it greg, youve been to space. Cisco makes hybrid work possible. Cdw makes it powerful. India says that it will bite crude from wherever it can get at the cheapest price. The Economic Impact of recent searches, and we spoke with them at the sidelines of the recent conference. We are Rising Oil Prices are going to create, i used the expression in another meeting, organized chaos. As it was within the last 18 months, increasing prices have created thrown at 100 Million People into abject probably. I think that half the world is, i would not say in recession, but it is flirting with recession. One quarter slightly up, another slightly down. I think it is in the interest of all countries, including the producing countries and the consuming countries, to have a healthy discussion on what constitutes a reasonable price bound. The other thing i want you to speak to is diversifying the sources of imports. You have made it clear that youre going to go out there and find the cheapest barrel for indian citizens. Where is that today . We have said all along that week, that is our companies in the private and public sector, will buy ever by wherever we get the cheapest oil. There was a time where we consumed 5 billion barrels every day, we have countries selling us 800,000 barrels a day. Then the restrictions and some went up and somewhat up in some went down. Last month he made it clear that there was potential that some of the imports from russia could be lowered substantially. Oh yes, yes. But the data shows that shipments jumped 15 from a seven month low boosted by price discounts. Thats according to the data that they have been monitoring with cargoes. Is that the case, are those shipment going out . As a septum of the data and you and i all agree on one thing. It depends on the discount. It is entirely possible where we will suddenly be getting a lot of supply from a country we have not bought from, as was the case with russia. The india market oil rent Oil Ministers speaking with us in abu dhabi. Focusing on energy markets, opecplus ministers are reviewing global oil markets, but showing no appetite for reversing those output cuts that have been squeezing global supply. Lets get more from the what oil trading reported. Is there any sign of a change in opecplus policy . I believe we have come to the wrong reporter there. As we work out the gremlins here once again, is elizabeth elizabeth, oil did not quite reach 100 bucks, any sign of a change in opecplus policy . The latest intelligence we hear from opecplus delegates ahead of the meeting is that is unlikely and theyre not going to make changes major changes to output, thats context on where we are, the markets are tight, prices have come up over 20 in the last three months. I think that is them talking about hundred dollar barrel oil, all this happening off of saudi arabia output in july, we are pretty low. And naturally a lot of oil buyers are calling for new oil prices. Recent comments from the group primus signaled that its key members are quite happy with carbon output levels, for example, Saudi Arabias Energy minister has been talking a lot about proactive strategies to manage the kind of output that chinas economy is singly. It is looking quite unlikely. On top of that, this week, we do see pullback in oil prices, around 90 per barrel. Thats probably more incentive for them to keep managing our prices. Thank you for that elizabeth, our oil trading reported in singapore. A big shootout in the end, and also looking at the yuan and the bought the thai baht. Did they are did they not come into the minister ministry of ave a recovery of the dollarwe against the end. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Hi, im jason and ive lost 202 pounds on golo. So the first time i ever seen a golo advertisement, i said, yeah, whatever. Theres no way this works like this. And threw it to the side. A couple weeks later, i seen it again after getting not so pleasant news from my physician. I was 424 pounds, and my doctor was recommending weight loss surgery. To avoid the surgery, i had to make a change. So i decided to go with golo and its changed my life. When i first started golo and taking release, my cravings, they went away. And i was so surprised. You feel that your body is working and functioning the way it should be and you feel energized. Golo has improved my life in so many ways. Im able to stand and actually make dinner. Im able to clean my house. Im able to do just simple tasks that a lot of people call simple, but when youre extremely heavy theyre not so simple. Golo is real and when you take release and follow the plan, it works. Its been a busy morning given the moves we have seen acroed income and encies, and we are hearing from bank indonesia, the really the latest to chime in on how they are trying to stabilize markets right now in face the face of this highrarket narrative. Buying bonds in the market to uild confidence is what we are hearing from the central bank. They are saying that they are intervening whcos to the bond market here right now. Certaianto watch as we see jakart by 1 here this morning, weakness when it comes to the rupiah as well. And we ocusing on hong kong still down today. Just to days of trading, monday was a public holiday, and all 3 of the lows so far, lets look at the Industry Groups might be the chmight be leading the charge. The hh de of things is one , definitely attract property for a change is not. We had this chinese comes curently to the downside. Ving we also have the reopen in japan here ell coninue to see downdraft, but at least with the dollaryen we are calling comoff, i guess, after that strength that we saw, we are beginning once again after suspected intervention, and w are still lkng a lot of clarity out there. We may hav wait and see a fw more weekshawas sort of if that was some sort of ntervention. But the markets are feeling it right now. Were going to change tact and look at what is happening in south asia, the world bank expecting growth to be quick in south asia, and the overall economy for the subcontinent could expand 5. 6 , down from 5. 8 . Its a dimmer outlook, mainly due to per a fading of postpandemic demand and higher Interest Rates. We have this gauge of stocks of state owned indian banks, they have rallied to a new alltime high and past its peak 13 years ago. Our asian equity reporters that reporter joins us now. What does this tell us here . Tate lenders in india have been on fire this year. They have outperformed their private sector competitors by a wide margin, and one of the key milestones that they have accrued this year is the index of banks has crossed its alltime high level which was seen in the 2004 index. A lot of investors are rotating their portfolios between thanks to the banks in india are seen as guards for privacy lenders for years, but this is the third year that the index of state owned banks is performing in their private years, those include the big banks like ics bank, and others which are outperformer. This year we have seen a number of investors hoping for more letters than the private. There has been is about ftse, going through that management reshuffle, what we know in terms of who will be leading the division . It acquired its Mortgage Lender parent, which was trading at 16 million, since then there has not been much on the combined entity, and they are growing their mortgage business. The bank has sort of, so far expence slowness, shares have underperformed since the combination was concluded. At the latest change that is to be announced by the management, which a Bloomberg News reporter deemed as being part of a retail presence in parts of india and Technology Centric focus is. Technology has been one area and it has struggled compared to peers. With these changes, the new managing thank is looking for the challengers. Our asian equities reported there. We have some news comiut of malaysia at the moment, the central bank chief theyre r ut of Interest Rate cut for now. Also, really adding to this glowing growinglocal narratives about costs having bhiger for longer, if you will. That is what we have at the moment. Just looking at the domestic demand iing growth, and saying that they expthe economy to remain resilient. Ruling outfor now, but that gets aside from longer, they are watching closely that Monetary Policy stance ich economy consistent with the Current Assessment of inflation and growth prospects. They believe that at this moment, 100 35 basis points of hikes, preemptive hikes they say is working ithe economy in yiel that intended outcome. That is the latest from malaysia, we talked about the 25 year lows when it comes to the malaysian ringgit, something that economists did tell david he is watching closely, and another thing they are watching closely is the shift into spor ad cricket. Because you know, we have a big event coming nindia, i see the world cup on ta well, theres going to be movement when it comes to these hotel media stocks. Big of a deal is thi i know its big for you. It essentially the much most watched cricket tournament. And what we are witnessin is the National Sport of a, t is virtually a religion, could argue, and it lets get an idea how big it is as we get to our reported looking at all of this. Vicki, its a big, big deal. Tell us, i know why, but you tell us why. Right, so india is going to be watching the icc world cup tournament, which begins tomorrow for the next six weeks. Cricket is the most watched sports globally after football, and india has become the epicenter. It is practically a religion. India has transformed how the sport is played through the indian premier league, which can be considered an equivalent of the super bowl. This International Tournament is very big with cricketers and brands and companies and even Smaller Companies are trying to catch a way to be associated with the game and benefit from it. Obviously, india has had a great year. What does this say for the country as well as the Prime Minister . India is at a very significant stage right now with shifting geopolitical ties. This is another event that puts the country into the limelight. As for the narendra modi, narendra modi, he will be attending multiple matches, the game between india and pakistan, and the finals that will take place in the largest cricket stadium in his home state. The stadium is named after Prime Minister modi, it can house almost 130,000 people. And critics are seeing the move to shift many important matches to this stadium as politically motivated. This is it enables modis efforts to push his home state into the global limelight again, and as elections are around the corner in india, critics are also seeing that this is a part of his bid to increase his popularity in the country. One thing what can fan france expect . Are you asleep obviously the two biggest rivalry between tmc cricket, one of the most watched. The hype around the tournament is here, thanks are doing from across the world and flying into the country to catch the games of india in pakistan and australia. There have been issues with the planning of the tournament such as the match states being shifted at the last moment, there is this Opening Ceremony which is going to happen today and might be canceled. Its a lot of concern in india right now, but they can be considered the equivalent of makeup for cricket. And we know that conversations in india and cricket plane countries are going to revolve around this tournament for the next month. All right, its going to get exciting, thank you so much for that preview, our news reported there on what is coming up this week when it comes to the world of cricket. Coming up, discussing outlooks when it comes to india stocks and why they expect more volatility in the near term. The head of Equity Research joining us. This is bloomberg. Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com here we go. Lets see, 29 degrees celsius there, we see equity futures on the way down on the rest of the region, that is just to tell you that you are watching the india focus. Looking at markets and also the elevated Interest Rates and environments, and the bond markets, it is of course playing habits with havoc with the investor sentiment, and india is not immune. Although they do remain positive and certain parts of the market, amid small caps in particular, but lets get to market strategies. The head of Equity Research at Asset Management is here, thank you for joining us. Give us a broad overview, before he unpacked things a bit more. Hello and good morning and good to be here. When we look at Indian Markets and what is happening around the world, structurally and fundamentally there have been three key drivers for Indian Markets, microgrowth and gdp growth has been fairly good, and corporate earnings are not playing out well, and that corporate earnings will be pour through 2024 and 20 25. And there have been bad investor flows. One aspect that we must bear in mind is valuations. On headline level, we have a largecap Index Trading at multiples slightly above averages. Small caps as you have pointed out have had a good time, but smallcap valuations are on an absolute and relative basis, looking stretch. We do expect some degree of olatility and therefore large caps and small caps, even structurally over a feyear. It fiveyear stretch will be positive. Flows negative in september, is that the start of a new trend . I think a lot has to do with how globally Interest Rates are behaving, and also in institutions where investor flows are concerned. What is the offset for Indian Markets has been the sticky Domestic Institution investor flows, and as you know, there is a systematic Investment Plan which works in India Driving strong domestic flows, which offset some volatility where buyers are concerned. However, over the last few months, buyers and from a net flow perspective are fine. Valuations are something that are making us uncomfortable, especially where small caps are concerned. Valuations has a was been something that people have pointed out with india as being elevated. Its always been inexpensive market. The thing is, that should not be much of a surprise. Overall, actually, they are holding up reasonably well, with these benchmarks, talking about the largecap stocks here, tell me why. Youre right, that valuation of india, especially with respect to the emerging markets act, it deals with elevated valuations. When you look at emerging markets, valuations are also about longterm value, and valuations are looking somewhat expensive longterm. What has been helping india has been corporate Earnings Growth profiles, and when you look at the Broader Market with profit from the gdp, which was at the bottom 2 , it has moved up to 4. 3 . And this sharp learning profile earnings profile trajectory range has changed the rating along with microstability flows that have altered. We do believe that the fundamental structures are pretty much contact, and in the near term you could see some degree of volatility because elective and absolute valuations are looking stretch. Visavis, it might depreciate. I guess what is crucial will be earnings and they have been holding up. How do you think tech earnings will pan out for the Second Quarter . I think that tech has been going through difficult stretch, especially with Economic Growth slowed down, u. S. Economy, as well as u. S. Difficulties contribute to eip sources. We do expect that the economy will be rooted in terms of earnings. And margins will also see some degree of shifting, especially for companies. The key to watch out for for inditex will be how the second half pans out. One redeeming factor has been that flows as well as momentum, especially for large deals has been pretty strong. And as the seals wrap up, maybe over the next few quarters, it should possibly start to bring out remedy growth improving. It will be a new quarter from the top line as well as earnings for india tech companies. Very quickly, looking at fridays interestrate decision from the reserve bank, what are you looking at and ultimately is it more about the defense of the rupee rather than inflation even with the or monsoon, inflation is not something that they can do much about. That inflation which has inched up in the lat two months has been led by food inflation, and thankfully some of that is bleeding off, while monsoons have been slightly below average, there has been a catch up in the last onth, and we have ended 6 below longterm average. From interestrate perspective we expect that rpi will stay on positive for the next policy meeting and possibly through the rest of the calendar year. We will look at data from a domestic and inflation perspective, as well as what is happening globally with some of the global central banks, including the u. S. Decision. We do expect them to be on an extended pause for a time the time being. Before the rbis we have a bigger event possibly where you are, and that is the world cup. Im wondering are you likely to see a boost . On the market there on the back of cricket, which is very much like a religion in india. Absolutely it is religion, and widely followed and anticipated as well. So yes, if you look at india, the growth trajectory for india consumption has been one segment segment which has been lacking, and it comes in an opportune time for the Festive Season as well. Therefore, a lot of hope that this will help provide consumption in pockets, and also segments such as hotels which benefit because of the demand which is related to the world cup. And this is something that as a country we are looking forward and luckily it does help bring consumption back on the table. Great to heavy, the manager of Asset Management, india caps off in the last few seconds, and it seems to be following what we are seeing regionally when it comes to stocks and risk aversion, you see them down. 6 . The rupee is flat in the midst of all this volatility we see swings when it comes to currencies here today, and of course we are still watching those hotel and media stocks. Leading up to the market. Pledging more ahead, this is bloomberg. Looking at southeast asia, some of the benchmark industries going in one direction, of course like the rest of the region, that market there, laser at the moment, kci,. 3 lower. But we see what july as at made at these levels, we have the administration, the government counting on the plan to cut broader subsidies in order to help narrow its fiscal deficit, which would be next year. And we caught up with the economy minister and david ingles asked him what to expect, with its annual budget on the 13th of october. For this coming budget next week, i think that the market will be excited because, finally, they will seek a concrete move, away from the blanket subsidy system which has existed in malaysia for many years and decades. Towards a target that rational subsidy system. That is key to the Fiscal Consolidation effect of this administration. How is the government looking to minimize the impact of inflation, and do you inflation to go up . There will be some form of cash reference transference of families. That is not the centralized household basis. Important for us to be able to design the cash transfers and be able to go into families in the manner that best mitigates the effect of inflation. Because obviously, the move will have some inflationary impact. The discussions discussion so far is to make sure that at least 80 of the households will benefit, one way or another, from different kinds of cash transfers. When remove to targeted subsidies. What new taxes are about to hit this economy, can you give us a little bit more detail, or can you relet new forms . We are not going to introduce taxes just for the sake of higher incomes for the country and the government. Without rationalizing and consolidated our expenditure. Should we be openminded about affinity taxes tax and towards the rich . I am wondering what is and is not on the table. I feel that at least for 2024, and the successful implementation of subsidy retargeting programs will put us in a much start position fiscally, and it will allow us some breathing space so that we do not jump on the new taxes bandwagon to callously. To be to get them that this target, a 5 of gdp, does that come in and how much is it coming . Yes, we, we should be able to make that 5 deficit budget deficit target set by 2023. And the plan is to bring it down further to 4. 6 or lower. And with subsidy rationalization, going full swing in 2024, hopefully that we will be able to ge go even further in 2025 to meet our 3. 5 target. The malaysian minister talking to david ingles. It is continue to be busy day when it comes to ethics, with rates and risk assets in general given what we have seen across the yields taking higher, but the commentary from each of central banks, policymakers, the ltest was indonesia buying bonds to build market confidence. Thyre intervening into the bond market. We have malaysia, the bank of thailand, and we ct forget about japan. We care. Its all about the end. It could have another run about the150 level, and the dollar will be feel that is why interestrate spreads, and thats no sign of them narrowing. That is a at those markets. We have got bloomberg daybreak europe lease and africa next. Eollowing is a paid program. The opinions and views expressed oot reflect those of bloomberg l. P. , its affiliates or its employees. The following is a paid presentation for the shark stratos, presented by sharkninja. Since 2008, shark has sold over 30 million vacuums and made their reputation by making cleaning so fast and easy with their greatest cleaning