Transcripts For BLOOMBERG Bloomberg 20240704

Here in the lion city, we know that stocks and bonds are getting sold off. We have not seen those in a while. We are seeing a lot of red. If you think about how we got that harder than expected u. S. Ppi hotter than every economist projections, it is raising concerns of a hawkish tilt from the fed. As we wait for the u. S. Central bank to connect those dots, we are already getting the Chinese Central Bank keeping rates unchanged on the one year, as expected, but this is appointing some corners of the markets that were holding out hopes of a reduction. Csi 100, hans singh dragged by tech names. You can also see in australia, the financial, the miningrelated stocks are the big losers today as we see iron ore approaching the 100 a ton level. On the japanese yen and chinese currency, we are seeing the dollar story play out, and the yen is in a tugofwar between the boj and fed, and the tiebreaker could come in the form of durango today. We saw the pboc coming through with a strongerthanexpected fix since november last year, so it is really about Central Banks. Haslinda and the pboc is keeping its powder dry. Not coming through with stimulus. It was as anticipated, although, there were a handful of economists that hoped for a rate reduction, including bloomberg economics. If you remember, the reserve ratio reduction that was frontloaded by the pboc governor, which came into effect in february, that gave a signal that perhaps the governor is sitting up and paying attention to the importance of market confidence and fighting deflation and ultimately disappointed the market, and it also drained cash from the Banking System. This is what we are getting on the pbocs, left. We also got data out of china on home prices. The declines eased, but it is still going in the wrong direction. If you look at new home prices, they have fallen nine months, and you get the idea that more support is needed for the chinese economy. Haslinda not to mention that that 5 growth target needs a steamroller. Lets bring in our strategist. So much room for disappointment and pboc started that already. The most important point was the cash, and although the equity market is not like it, they are reacting badly. The pboc is concerned with the bond markets overheating and china. Too much money has been flowing into government bonds. It is close to an inverted yield curve in china, putting a warning signal out. What they are most concerned about is particularly, even banks, are putting money straight back into fixed income when they should be lending to companies in china to get the economy going. This is partly aimed at china breaking the cycle. Do not bother to keep buying bonds because we are not going to support that market. Please, send resources toward the real economy where we need it. Haslinda but the timing of the move and the messaging from the pboc is not helping sentiment. Mark no, it is a tricky balancing act because their equity market has rebounded a bit. There is a bit of a floor around it, but is it is a fragile recovery, so anything which takes major moves is not going to be good for the market. The good news on the other side is the state backed funds supporting the market were active and they have gone pretty quiet the past couple of weeks, so they have a bit of room and ammunition available. It is quite likely we will see them support the market. I would not be surprised at all. Whatever the pboc do, they cannot please the bond market and the stock market and the consumers all at the same time. Any help from the fiscal side and other areas, as well. A tough job and they are trying to go down the middle. Haslinda tough job for the fed, as well, with more reasons to stand pack. Epi came in hotter than expected. The talk is moving from three to two. How will this play out . Mark for centralbank nerds like myself, this is just amazing. We have not had a chance for the boj and fed to conversation. The conversation. The most bullish case for dollaryen would be the bank of japan leaves everything unchanged and the fed moves to two. That is boj being as soft as they can and the fed to be much more hawkish or the and goes much higher likely. The other side of the equation is the dollaryen go slower because the boj goes all in, comes out of negative rates, does the whole thing in one shot, and the fed stays at three dot plots the rest of the year. That is a soft signal from the fed. The extremes are very big, somewhere in between is probably the answer. Haslinda what are we seeing in terms of positioning . Mark yen shorts are still significant in the Foreign Exchange market. They have come down a bit, but they are still very large. There are definitely people who on the scenario, which is favorable for the end, people with positions in the bond market, it is a bit squareer that it was. So, the room for volatility is pretty good because we do not have markets that really have extreme points and in terms of trade deposition, they are extremes where it is priced in. It is not appear to be priced in. Haslinda when it comes to the boj, what are the key things markets are looking at . What are the key things for bond traders . Mark the big one is negative rates. We talked about it this morning, the way the headlines come through typically for traders to watch, the first headline is the boj leaves the rate at 0. 1 . Whatever that headline is when it first comes out, traders will be jumping on that. Following on from that, looking at the yield curve they tend to vary the messaging about the yield curve furthering the statement, so it will not be automatic. As a reaction to the first headline, people are waiting for a bit more meat in the story. If they leave the rate unchanged, dollar yen flip up first, and then they decide, we will go all the way. It will be a long time. Haslinda you talk about volatility and concerns to the market with the volatility, how much risk is there in doing that . Mark i think people like them taking the view of the mediumterm outlook for the japanese economy and the equity market, they probably will survive. It will be a gradual process, but the signs themselves are benefiting with the ai story. Japanese companies are backing the tech sector and they have reinvigorated themselves and the investments are stunning. If you look at a Taiwanese Company building a huge factory and another, and other people are putting money into japan, as well. And japanese commodities are Getting Better at paying dividends. More risky if you are in japanese fixed income. Haslinda it will be a big week next week. U. S. Democratic and republican senators are resisting calls should fasttrack a bill that would force tiktok to sell the app. It must be divested in six months or said the platform. Richard blumenthal says the deadline is too short and republican ted cruz would like it review and that could tied up for months. A Senate Committee chair tells us he supports expediting the bill. There collecting enormous amounts of personal data about americans. The genius at tiktok who knows what you like before you may know, and that kind of personal data, the americans who are on 90minutes a day, if you dont think that is a Security Risk you could be blackmailed at some future time by the asian or Chinese Government, that i think you dont understand the unfortunate real world we live in. Haslinda the top u. S. Diplomat to china has hit out against beijings objections to a possible tiktok mban. We spoke with our chief north asia correspondent exclusively. We have heard a number of complaints from the government in beijing this week about the american debate on tiktok. I find it supremely ironic because government officials here are using the x platform to criticize the u. S. They dont give their own citizens the right to use x, to use instagram, facebook, to have access to google, so it is ironic indeed that the government here is complaining about a process where they shut down access for 1. 4 billion chinese to all deplatforms. Every country has a duty and responsibility to protect its National Security, and what the president has done is to make it impossible for sensitive american technology, advanced semiconductors for ai services, to be sold to china because we know it will happen. The Peoples Liberation army will take advantage of the technology to strengthen itself at the expense of the american military. We are not going to do that or compromise our National Security , and we will not negotiate. You can bet that the government here in regime is taking similar measures. We have not allowed most of the last 20 years the export of poor, sensitive National Security, applying Chinese Technology to the u. S. So every government, and certainly ours, has the right to take decisive steps and that is what we are doing. We now about the Foreign Direct Investment down to the lowest gain since 1993. There is hesitation, not only because of the weak economy, but a myriad of National Security and opacity of policies, especially coming out of the National Peoples congress. We do know, and you are in that 60 minutes interview where you talked about u. S. Companies who have seen the raids, and they have seen arrests of u. S. Citizens. Can you elaborate on the threat and deposit over the Investment Community and americans doing business in china at this time . This is a question central to the u. S. China relationship to the years beyond. China is the Third Largest trade partner in the u. S. There are thousands of American Companies doing business here. They are hearing conflicting stories. Some senior Chinese Government Officials Say private Sector Investment is welcome, but then these companies are also hearing a different message, whether it is the raids against American Companies last march and april, whether it is that espionage law, which it is defined in a general way that normal activities and any other country in the world, the collection of data, could be construed as espionage. We could see american firms backing away or being cautious about investing a lot of money here because they are not sure what it aligns, and the voices they hear from the government and china about National Security, they are the strongest and loudest voices right now. Haslinda that was the u. S. Ambassador to china, nicholas burns, speaking with our correspondent. Still to come, we speak exclusively with stephen townsend, steven townend. We will discuss the companys record profits later. Keep it here with us. This is bloomberg. 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Amy i think it is probably still the fed. We went into the year with a lot of hope, with more than seven cuts christ in for the fed, and now we are priced in for the fed, and now we are pretty much stopped where the dots are signaling. Every time we get more data from the u. S. , the market takes another couple of steps back from thinking, we better wait a little bit longer now for the rate cuts that we were so sure of were coming by march or may at the latest, and now jun even seems off the table in terms of market pricing. I think it is the fed that will inject the biggest volatility into the market, depending on how it puts its hold position, whether it is hawkish or dovish. But the boj, yeah, certainly, a lot of movement to the yen lately, as well, but that trajectory is painted well for us. It is a matter of when, not if. Haslinda through the fed, it is about whether it moves from three to two rate cuts for the year. Are you anticipating that in light of all of what we have seen so far . Amy if i told you all of a sudden if you do not know where the fed dots were, and i told you there were known priced for it there were none priced for this year, and at the same time, you sour inflation and consumption was sent growth was in the u. S. Economy, you saw that the isms seem to be bouncing off their lows, which is indication of where the manufacturing cycle is, or you saw that the housing sector and the u. S. , despite the Interest Rates, are no higher for home borrowers, have decided to turn a corner. Would you say that is unreasonable if i told you there were no cuts priced in . Haslinda having said that, how do you hedge your risk . It is a risk environment with uncertainty and a market price for perfection. Amy it is a market price of perfection, but i would argue it is more price of perfection on the risky asset side. More specifically, when we talk about equities, a lot of the time we are referencing the s p 500, and you have heard endless debates on bloomberg about whether it really is the s p 500 or the rest, so when you look at the way that risk assets have been priced in, earnings expectations are still for Solid Earnings growth this year, nowhere near an earnings recession. We think that is behind us. We are looking at risk premium indicators like the vix, and seeing that glued to the floor, despite the fact that we will get other indicators from the fed with recession probabilities soaring at a high, so there definitely is dislocation in some aspects of the markets. I agree that some Asset Classes are underpricing the risk. Haslinda vix close to the floor, but at record levels, so that says something about risk appetite, as well. How is your portfolio looking right now . What are some changes you might have made . Amy you might gather from the way that i answered your first question, if you were to play the tape back from when we first had our conversation, you would see a meaningful shift in my bullishness about bonds. For me, my portfolio, tactically, thats the biggest change. At the end of last year when the markets priced in seven plus cuts into the fed curve, that momentum was good for people who were bullish on bonds. At that time, we had a lot of indicators that not only is inflation coming off, but growth is likely to follow. The biggest thing that has changed so far in 2024, as more pieces of the data have come out, it tells me that because growth is a resilient in the u. S. Economy, inflation coming off itself, even if i remain convinced on that, is not going to be enough to justify the types of pricing beside the end of 2023. As a result, my positioning on bonds is far lighter and pretty much flat in all of my income products. Instead, a good growth environment tends to be good for risk assets, and i let credit more. Haslinda and i like credit more. Haslinda haslinda how are you looking at china bonds . Today, we had the pboc draining about 13 billion from the system, perhaps signaling that it would not like money pumping into the bond market, rather the equity market. How are you reading all of the signals . Amy we are still shy of that big bang stimulus approach from the pboc or any other offering in beijing, and we know that will not come. When you look at all the things mentioned, they have not removed the three highs, and that is the bar. If they are not moving unders, then with his field chinas growth will not fire back what i see in chinas Economic Indicators is nearterm encouraging. So you will see credit growth start to base and turnaround and china is still fueled by credit, even with restrictions going on, you see good momentum in new floor space started in terms of construction. You are seeing land sales while in negative territories. All of these are encouraging signs of the chinese economy stabilizing. When i think about where china yield should be, i think they ought to be higher. Haslinda by the end of the year, do you expect chinese assets to do better than the start of the year . Amy a year is such a long time for the chinese economy, especially when nothing has changed. Structurally, the economy is close to being on its knees than not. I ask the question about i am not a chinese equity expert but you have large parts of the stock market that are pricing so cheap, most of the accessories is valued below book at the moment, and you have seen that in europe, largest ways of european Banking System and in the depth of the euro crisis, but that market has since recovered. With china, you have to play the long game. I cannot give you an answer as to whether the markets will be higher than now. Haslinda karen off. Thank you for your time, amy xie patrick. Plenty more ahead. Keep it here with us. This is bloomberg. Hey you, with the small business. Whoa. Youve got all kinds of bright ideas, that your customers need to know about. Constant contact makes it easy. With everything from managing your social posts, and events, to email and sms marketing. Constant contact delivers all the tools you need to help your business grow. Get started today at constantcontact. Com constant contact. Helping the small stand tall. Its basically tennis for babies, but for adults. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from morgan stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Haslinda welcome back. Here are top geopolitical stories we are following. The Biden Administration sanction two israeli settlements in the west bank and called on israel to do more to end violence against palestinian there. It is the second time since they have opposed sanctions on israeli fair. They are calling for israel to hold new elections. The leader of the houthi levels said they will expand their ships in the indian ocean. He says they carried out three attacks in the indian ocean this week and will not stop until the ruling gaza ends. It is up 85 since december h due toouthi attacks and the red sea. Lets take a look at how Energy Stocks are doing today as oil rose to its highest closing since 2024. That is on the back of the iea warning of supply deficits throughout the year do opec production cuts. It sees wti settling above 81 a barrel. China Oilfield Services also inching higher, up almost 3 . Plenty more ahead. Keep it here with us. This is bloomberg. When i was your age, we never had anything like this. What . Wifi . Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi on the xfinity 10g network. Haslinda there you have it, shanghai in all its glory. China markets just heading to lush. A down day for the csi 300 index. There is disappointment. The mlf was kept unchanged. But more importantly, the draining of liquidity, 13 billion worth by the pboc. Perhaps it is a sign that it wants markets to stop popping in money not into the bond market pumping in money not into the bond market but into the equity market. The yuan is flat versus the u. S. The fix has been very strong, its been the strongest fix we have seen since i think november. Pboc sending out that signaled that it is comfortable propping up that currency as that recovery in the economy dwindles away. Shanghai off to lunch. Nikkei 225 back from lunch. And you know what . It is also a down day. Avril hong is with the very latest. Avril i mean, we are seeing how that u. S. Inflation data, those ppi numbers, she filtered through in the early parts of the trading session, already putting pressure on equities in japan as around the rest of the region. But we are really on watch for the rengo results. That will be key to weathered the boj can start lifting off on rates next week. We are seeing the nikkei managing to pare some of the declines from earlier on in the session. It is today helped along by the energy and mining related stocks. Lets flip the board and take you cross asset, because the nikkei is flat, but we are seeing the broadbased gauge managing to clock some gains. It is those mining related counters. There is so much at stake. Ahead of the rengo results, we have a boj former official wing income sing it is too close to call weighing in, saying it is too close to call but the rengo results could prompt a move from the boj next week. The bluechip gauge is hovering near record highs. The weaker yen, it is in the middle of a tugofwar between the boj and the fed. The rengo could be the tiebreaker. Amid all this, it is helping the export related stocks. Yields in japan climbing. Thats what we see cross asset in japan. Haslinda avril hong, thank you so much. We are bracing for the boj meeting next week. Asias largest Aircraft Leasing company, boc aviation, this week posted an annual record net profit, a steep jump from 20 million in 2022. The result comes as plane maker struggled to meet demand amid a Global Travel rebound. Joining us exclusively now is the new ceo of boc aviation , steven townend. Great to have you with us. Record numbers. The question is whether that is sustainable Going Forward . Steven i think it should be. If you look at the numbers we posted, we just beat our previous record high in 2019 of 702. In the core business, revenues were at record high levels, cash flows were at record high levels. We did have some recovery in terms of the insurance settlements for the aircraft that were stuck in russia. I think what we are seeing in the industry now, as you just talked about, is that we are seeing record demand for aircraft. Haslinda are your number is a reflection of the aviation sector . Is it back to a healthy level or are there still pockets of distress . Steven globally, we are definitely back. Global traffic is now back above 2019 levels. We are seeing even this week, the airport reported traffic back over 2019 levels. Cathay pacific announced strong profits this week. I think most parts of the world now are back where we would have seen them prepandemic. The only trailing piece i think is that crossborder china market. China domestic is well ahead of where was in 2019, but we are seeing that recovery as well. I think we are seeing this continued momentum of strong recovery in the industry. Haslinda you have had us talk about the fed and expectations of an easing in terms of Monetary Policy. What might be the implications for leasors if we see an easing of rates . Steven fundamentally, we are a leveraged business. Today, we are levered at about three to one. We are the largest Corporate Bond issuer in singapore. Our largest cash cost, our second largest cost is the interest expense. If we do see some easing in Interest Rates in the second half of the year, that should provide us with a bit of a tailwind as we move forward. Haslinda even as you talk about how you talk about how your optimistic about the industry, there are hiccups in terms of supply chains, engine issues as well. How is that being impacted . Steven we are seeing it across the industry. This is not just a this your problem, its been a multiyear issue thats affected both airbus and boeing, its affected all of the major engine manufacturers. What we are seeing is that supply of aircraft is not been able to keep up with demand. So, fundamentally now, weve got this situation were traffickers come back strongly, demand for aircraft is outweighing supply for aircraft, which clearly helps People Like Us that have aircraft, have aircraft available for lease. Whats unique now i think is that we have not seen this imbalance of demand and supply for most 20 years almost 20 years. I think it was pretty financial crisis was the last time we saw the market where it is today. Haslinda its happening at a time when Airlines Want to growth. Give us a sense of how long these delays are and perhaps the impact given that you are unable to collect payments for the jets already placed. Steven so, firstly on that point, aircraft that are already placed, people are paying. Our collection rate for 2023 was actually above 100 , so we just not collectibles do to us last year, but also some amounts that had been defered. In terms of supply, if you look at what happened during the last three years with the jets that airbus and boeing were unable to produce, we are short probably 3000 to 4000 aircraft on what would have normally been produced during that period. Its going to take several years to really catch that back up again. Haslinda when it comes to delays and deliveries, it also impacts demand. What are you hearing from boeing in terms of how long that is . What is it telling leasors like boc aviation . Steven firstly, this is not just a boeing issue. Haslinda but what are you hearing from boeing . Steven boeings challenge right now obviously is they have a cap on production, which the faa has put in place and that is going to restrain their ability to get back up to the delivery levels that they want to be at. We are going to continue to see delays from boeing across the types of aircraft that they are delivering. Equally, we are seeing delays also razzle in the supply chain. Also as well in the supply chain. Haslinda is there an area of acute shortage within the industry . Steven the area of greatest shortage is the narrowbody aircraft, 737, a320 sized aircraft were we have seen demand come back strongly and neither manufacturer has been able to raise levels backup to the level they wanted, whether its engine issues, production quality issues, its issues across the board for the supply chain. Haslinda we know that boc aviation has been pretty active in buying aircraft. Are there plans to buy more given the growth that you are anticipating . Steven we are always looking to add aircraft. The growth we had last year was about 10 year on year. We aim to continue that level of growth Going Forward. Our order book today is about 224 aircraft that deliver basically from now to the end of the decade. Where we see opportunity to add to that, definitely we will. Haslinda wide bodies, would that make sense . Steven it may at some point. If i look at our existing fleet and order book today, we do not have a widebody aircraft available until 2028. I think what we are more likely to be doing in the near term is helping to finance airlines deliveries of widebody aircraft rather than ordering further aircraft are self. Haslinda this is an environment where geopolitical tensions are rising. Mike that impact demand in the end might that impact demand in the end . Steven well, we have not seen it yet. We never know where these things can lead. To date we have not releasing that. We have seen demand come back strongly. We have seen demand for our aircraft globally now. Whether thats coming out of the americas, out of europe, middle east, here in southeast asia, you know, we are seeing it globally. Haslinda you are about i think several months into the job and what has been the biggest challenge for you . Steven i think, so i have been with the company for a long time, i have been with the company 23 years. To a certain extent, it will always be evolution rather than revolution. But its always different, once you become ceo, you know, you now have to worry about everything. I think the biggest challenge for us, given the supply chain challenges you are just talking about, is maintaining that growth. I think we are in a good position but weve got to make sure that we are able to maintain that Going Forward. Haslinda what is the ambition, two, three years down the road, where would you like boc aviation to be . Steven at the moment, we are the largest in asia, one of the top five globally. Strategically we want to make sure we maintain a position in those top five globally. If i look forward to the end of the decade, then we probably need to go from being 25 billion today to 35 billion to 40 billion by the end of the decade if we are to be sure of maintaining that market position. Haslinda what does that mean in terms of fleet size versus arrivals . Give us the sense of the kind of growth you are looking at. Steven our fleet size today, weve got in the existing fleet about 460 aircraft, 224 on order so 684 in total. I think by the end of the decade we have to be taking that closer to 1000 aircraft. Haslinda and in terms of profitability . Steven we have been consistently profitable. We exist in a very cyclical industry. Weve been around for 30 years and weve had unbroken profitability throughout the. There will be some cyclicality in the earnings. I think we can continue to build on what we have generated over the years and maintain a solid return for our shareholders. And reportedly, continue paying our dividend importantly, continue paying our dividend. Haslinda when it comes to the aviation sector, the price of oil, price of fuel is key. We are seeing geopolitics weigh in in terms of prices right now. What assumptions do you make about price and how that might impact demand . Steven from what we see today, we do not see huge variation in oil price. I think its actually been more stable in the last one or two years than had been in the prior period. Absent some big, geopolitical shock we dont see a trading much outside of that broad area it has done for the last one or two years. Haslinda at least some stability amid all the challenges faced by the industry. Steven townend, ceo at boc aviation, thank you so much for your time today. The u. S. Ambassador to china says channels after medication between the two nations militaries are starting to open up. Hear more from his exclusive interview as the ambassador weighs in on u. S. Alliances in the asiapacific and beijings increased military spending. The two president s, President Biden and president xi, agreed in San Francisco that we would begin again serious, highlevel communication between our militaries. Has it happened . Its beginning to happen and its critical because our militaries are operating in very close proximity to each other. Chairman, our new chairman of the joint chiefs, chairman brown, has had a discussion with his chinese counterpart and we hope secretary austin will be able to talk to his counterpart in the coming weeks or months, and then we hope there will even be conversations on a more tactical level between our militaries. This is common sense because you want to drive down the possibility of any kind of accident or misunderstanding between our air forces or are navies. We do know that at the National Peoples conference, chinese increased the military budget by 7. 2 , the biggest increase in five years. First of all, are you concerned by that . Or how should we read that . What we are concerned about is the fact that the pla is not transparent about how the money is being spent. You know on the issue of Chinas Nuclear weapons buildup, they are not transparent with the rest of the world and that is a problem. And of course, you know, the United States has been a principled military actor in the indo pacific since the close of the second world war. What we have been doing and President Biden has had a lot of success in this is to build up our alliances with japan, the republic of korea, the philippines, thailand, australia. We have the quad with india all designed to protect the democratic countries of this region and protect International Law in places like the Taiwan Strait and the south china sea. We are also hearing that the Biden Administration wants to and is exerting pressure on allies like the netherlands, like japan, like germany, like south korea to further the curbs of other products into china. How does that not expand that pressure and actually bifurcate the relationship further . We have been very clear that we adhere to a small yard, high fence scenario, meaning these are targeted actions that regulates investment by American Companies in the ai sector here. These are common sense actions by the United States. Annie American Government would have to take this action, given the competition we have underway in the military sphere between the Peoples Liberation army and the United States. And i dont think theres american alive who would say we should sell advanced technology to the pla. The president is acting in the national defense. We are not going to negotiate or compromise on this. These are the actions that i government has to take to protect in the 21st century in an age where technology is at the heart of international politics, some of it has to be regulated. Haslinda u. S. Ambassador to china with our chief north asia correspondent, stephen engle, in beijing. India starts trading in just under 15 seconds. We know theres been a lot of funds buying the dip in india. We saw a record amount by local institutions worth more than 1 billion on wednesday alone. Small caps, recent dialings are done more than 7 this week and thats on the back of consolidation. Some stocks we are watching today include paytm, and paytm winning key payment approval needs to stay in business and thats according to some people familiar with the National Payments corporation of india. They said lenders the likes of access make, hdf see, state bank of india willpower. Two peer or upi payments on paytm. The index under pressure, down 0. 4 . Still to come, indias elections watchdog reveals Prime Minister modis party was the biggest beneficiary of now banned monetary bonds. We will follow the trail, next. This is bloomberg. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh starting a business is never easy, but starting it eight months pregnant. Thats a different story. I couldnt slow down. We were starting a business from the ground up. People were showing up left and right. And so did our Business Needs the chase ink card made it easy. When you go for Something Big like this, your kids see that. And they believe they can do the same. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card. Make more of whats yours. Haslinda indias elections watchdog has released longawaited data on contributions to now banned Electoral Bonds. Top companies are on the list with Prime Minister modis party receiving almost half of total donations over the last five years. Lets bring in our south asia government reporter. What have we learned from this data so far . Swati um, so we have learned that millions, hundreds of millions of dollars have basically moved between donors and Political Parties. Using these Electoral Bonds. The Electoral Bonds work in a way which creates this opaqueness around who is contribute money and where that money is going to, basically using a government owned bank, they work as paper instruments which are officially going through the channels but regulators do not know where the money is going and if there is any quid pro quo involved in the transaction. We are seeing that Political Parties have received hundreds of millions of dollars in donations through these bonds. Haslinda and these are big names, perhaps most surprising, who wasnt on the list. The firms of mukesh ambani, they are not. Swati the data lists a lot of big names. It does not list the more obvious names, which are ambani and andani. Haslinda swait gupta there. Plenty more ahead. This is bloomberg. Haslinda japans Largest Group will release the strongest labor numbers indicates. Ahead of that, Suntory Holdings president and ceo told us why he is in favor of continued pay hikes. Before summer, i think we have a huge opportunity to be able to raise prices. But after summer, we dont know about that, because how we can keep the, you know, current the yield, you know, current above the 3 inflation, if that is sustainable not. That is a sharing concept between us, business, and boj. So we have to keep raising wages for the next years to come. Thats another issue we have to discuss. You have talked a bit about the week yen. Over the past few years, we have seen the end weaken a fairly substantial amount. Whats your view on the yen and where it is and how businesses navigate through this changing currency environment . First and foremost, to what extent will bank of japan ease the Monetary Policy . I dont think they want to ease the policy, the Monetary Policy unleashed. I think they will change the frame negative to positive, but slightly. It does not mean. They want to unleash, get the Monetary Policy unleashed, which means, which means they are still bank of japan will keep the easing policy of monetary, Monetary Policy. And that means the chief, key factor is the fed, the fed will lower the Interest Rates three times, four times to what extent . I am sure the current level will be not sustained. Perhaps the 140 or 135, so 150 is cheapest, weakest. But the trajectory is not so much of volatile in terms of the value of yen. Thats needed for business. Volatility is the major risk. Lets see, 135, around 140. But down from here . Depends on fed, not bank of japan. You make the point priority is the health of the economy Going Forward and not exec or the currency is and the bank of japan will not make these decisions in a vacuum. They have to be aware of what the fed is doing. The bank of japan can move out of negative rate territory but partly how far they can move will depend donald happens in the fed and other Central Banks . Is that your point of view . Yes, lets take a look at the longterm. It is now standing around 0. 7 or 0. 6 . I mean, now already the message were given to the market. And i think the current market, money market is based on the messages given by the bank of japan, which is not the unleashed, but to some extent, and negative rate will be dismantled. Haslinda Suntory Holdings president and ceo speaking exclusively to bloomberg. Lets take you to markets, some of the movers we are tracking right now, samsung among them. Chiprelated stocks. Samsung set to win 6 billion from the u. S. Under the u. S. Chips act, according to people familiar with the matter. They said the money will help samsung expand beyond its project in texas. Samsung rivals like tsmc and asml set to be awarded that grant. Tsmc also in negative territory. We are tracking hon hai surging more than 8 right now after profits soared 30 , boosted pretty much by is ai hardware sales. Shares up about 15 or so year to date. Traders gaining a growing share of the ai business. Take a look at where we are in terms of gmm. Of course, it is trepidation, red pretty much across the board as we await the boj as well as the fed. That is it from Bloomberg Markets asia. Daybreak middle east is next. Keep it here with us. This is bloomberg. Announcer the following is a paid program. 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