Between twoyour notes and 10year notes. Property developers getting a slight boost but that is only one bit of optimism, other symptoms and sentiment on the negative side. Taking a look at bangkok, the open for markets there, the Prime Minister talking with us exclusively and giving us growth forecast. More on that in about 12 minutes. Lets look at the bond picture. Some elevation in yields at the moment. New zealands 10 year yield unchanged but against the backdrop of vastly higher growth than had the anticipated and looking at that 30 year yield. Lets look at the thai open in bangkok. There we go. Lets look. We see the open in line with what is going on in the world. The currency trading on 36. These are lows for the currency since november last year. We have had four days of losses for that currency. Its going in the same direction as others. The struggles reflect challenges confronting fx in this part of the world because of the resurgence of the dollar and the higher treasury yields which is taking away the appeal for emergingmarket assets. Looking as though we could be seeing movement to the downside for india, just off those record highs recently in the currency stable, not far off record lows against the dollar, and that is 83. 27. Indias Central Banks and focus, boe, indonesia, philippines, turkey, sweden, norway. Lets get the outlook with one of the leading online trading platforms with total assets of 100 billion. Always a pleasure. What did you make that the fed . Not a big surprise but the key comment is they see more hikes and inflation is not under control and what is interesting is this is a global phenomenon now and we have depth levels globally very high if not the highest ever and the burden of this will at some point have consequences. Rishaad right. Where do we go from here . What is your take here . People asking about soft landings and the like against the backdrop where we see them also elevate their forecasts. Yeah, well, it seems clear to me we would be higher for longer and inflation is not under control, and you also see salary hikes that put a more stronghold on the inflation pressure and i dont think we have seen that things have topped off yet, so all in all, we have of course the u. S. Leading this and they indicate another rate hike before the end of the year but when you look at japan, which has huge debt burdens and have tried to do 10year yield control now more hawkish around that so it is being stuck between a rock and a hard place because you have more than 200 of gdp in debt and the current servicing that that is close to 20 of gdp so further rate hikes will obviously damage the overall economy significantly, so i think that soft landing. Right now we have not seen any bad things happening but it takes time for this debt to be rolled over at a higher rate so when the price of money goes up there will be less money so it will have consequences. Im not sure it would be as soft as one could hope for. Rishaad you are making the point that the Interest Rate hikes have not been passed on to the consumer by banks. Ok, sure, if you are borrowing money, they have been but if you are depositing, it is a different kettle of fish. Explain the implications of that. In general of course in bad shape it gets political, then we see political intervention in the interstate with extra taxes we have seen many places for banks which is bad and should not happen. On the other hand if you have a mortgage, oh the bank money, clearly they will take operates and if you have deposits, not all banks are keen to share that benefit with the clients and i think that competition will take care of that. We are trying to make sure every rate hike will be passed on to clients and for the banks that dont do that, it can be difficult and we have seen in the u. S. Where banks have been going so far out on the yield curve so they are getting hurt really badly by the fact that the bonds are falling down, and if the same time they should pass on higher deposit rates to clients it will hurt a lot so this will intensify competition and also be super interesting to see if there would be movement and whether clients will take their money and move somewhere else which i think would be the logical thing to do because it is really money in their pocket enough landing where it is supposed to, so it is super interesting to see how it unfolds and i think the competition will solve this and not political intervention. Rishaad absolutely. You dont want regulation. You are in this part of the world, so what are you seeing where you have come from and generally speaking in a more granular way the sentiment towards china and the and investable tag it has uninvestable tag it has been carrying . The markets have been hurting and the property sector is 30 of gdp which has issues and we do see a kind of a gray banking market that is also very very big around 3 trillion, and of course there is all the geopolitical stuff and i think it is super sad because we are living in a small world and should be doing more winwin together and i hope this will end. I think the noninvestable phrase will be there along time and a lot of assets already have been hurting so much that there may be further risk longterm for the investor. Some opportunities in the Chinese Market as well. I think all and all i hope the politicians from all over the world will try to meet and understand we are all inhabitants of this world and we need each other and we need more whenwant and not too much attention if it can be avoided. Rishaad there must be opportunities and those for benefiting to derisking . I think that every time there is a movement in the Global Economy and the macro cycles of the economy and you know when Interest Rates change in when inflation goes in the markets are moving, of course money will be moving with it. We are here to facilitate our clients and do everything we can to help clients navigate this complex world where there are many tensions from climate, politics, and economies evolving, so its helping clients navigate through this and we need to be more diversified and take advantage of these things, so that is good and were trying to be close to the clients and be timely, relevant, and actionable the make sense of this data hitting us. It is definitely an opportunity and i think that good things will come out of this because sometimes these crises do help us learn and improve going forward. Rishaad right, well, when we look also at that story, india seems to be the major beneficiary up to now. How are you seeing it through your banking lands lens . First of all we have more than 1000 people in india and india is an interesting place and inflation is not going bananas. It has been high, but it is more banal in india now. Whether we like it or not india is in a position now to be may be more kind of a hub for doing developments. There is a lot of activity in india. It is a young population and there is an aggressive stance to promoting business and winwin transactions and i think we have not talked about india for a long time and it has been more the great superpowers of the world but i think clearly india is moving into that space on many fronts and i think that there is a huge Growth Opportunity in india and we are seeing them grow intensely, i honestly believe the world needs india now and it is super interesting to see how the world unfolds. Rishaad and what about europe . You know, a few months ago the ecb was being quite well, optimistic, but then suddenly the data turned and that is presenting a conundrum for Christine Lagarde and crew, so where do we go from here there . Again, inflation is not under control in europe either and the ecb just raised 25 basis points. I am european and we come from the northern part of europe in denmark, and really europe is the biggest Economic Zone in the world and of course it is set up by many Different Countries and is very terrible war in ukraine we have also seen europeans, much closer and start making some pretty bold moves into energy, military, nato, and so forth and i think maybe europe is underrated. We saw some good developments in the equity marks of europe and there are lots of good things. It is too slow and bureaucratic, but sometimes crises are changing that thing so i think europe is hopefully here to stay and also it is the biggest Economic Zone in the world and even though it is fractured it is moving forward but i also hope we can have more aligned approaches to some of the Big Questions in europe. Rishaad always a pleasure having you on the program. Thank you so much for joining us. Still to come on the program, again, looking at how these higher for longer Interest Rates in america could impact the indian economy, speaking about investment and strategy. But first, our exclusive interview with tidelands Prime Minister and why he thinks the government needs to spend to grow the economy next. This is bloomberg. Fabulous surroundings. But everyones looking at their phones for Financial Insights from merrill. Is he hailing a ride to the concert hall . No. Hes making sure his portfolio and retirement plans work in harmony. They want to adopt a child and build a new home. So theyre talking numbers with their merrill adviser. Shes not researching her next role. Shes learning how to handle market ups and downs without the drama. Personalized advice so impressive your money never stops working for you with merrill. A bank of america company. Im sam morrison. My brother max recommended you. So my best friend sophie says youve been a huge help. At ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. Our neighbors, the garcias, love working with you. Because the advice we give is personalized, hey, john reese, jr. Hows your father doing . To help reach your goals with confidence. My sister has told me so much about you. Thats why its more than advice worth listening to. Its advice worth talking about. Ameriprise financial. Rishaad you are back with bloomberg markets. Thailand newly elected Prime Minister is saying there Economic Growth could reach 6 to 7 by the third year of his term. Srettha thavisin spoke to us in new york about the challenges the new Government Faces on trade and investment. Srettha thavisin if you look at international trade, Foreign Trade agreements, we are falling behind vietnam. The previous government did not pay as much attention as needed to sign up as many ftas as possible. That is one reason. Also we should have been out to talk with various countries to bring in more investment to the country in the past. We have not done that enough. Investors are not buying into the thai story now. Srettha thavisin may be because we have not been telling the story. Allow me six months and i am hopeful i can change their mind. Foreign funds have been withdrawing money from the stock market and the bond markets. Srettha thavisin that does not mean they dont have confidence. That may be the difference between the Interest Rates. I have to disagree. There is also concern about the big spending plan in the country and the likelihood of Srettha Thavisin if you dont spend, you dont get the growth. Is there a viable plan to fund your stemless packages . Srettha thavisin thailand Srettha Thavisin yes. Yes. We have liquidity and thailand at the moment. The fund float now is because of the difference in Interest Rates. Like today the currency is wea k. If you have a week bhat it is good for export and tourism which we have been promoting heavily as you are aware. We have visafree for the chinese which is a big big market for us and soon we will have other policy to follow. It is down 3 to date in the country in addition to the 16 drop over the last three years. Does it reflect the fundamentals of the country . Are you not concerned with the weakness in the currency . Srettha thavisin no, i am not. What is fair value . Srettha thavisin i dont know. What the market believes. Im not here to interfere with exchange rates. I dont believe in that theory. What are your Biggest Challenges in fixing the economy . Srettha thavisin like i said, you know, we have been, we have been closed as a country for a while. I need to make sure that the world knows that thailand is open for business. Those of the first initial steps in growing the country again. Rishaad the thai Prime MinisterSrettha Thavisin speaking to exclusively our coanchor haslinda amen. Right. Quick look at thailand because it has lagged its peers reflective of the currency as we look at what has been going on that late. In the quarter to date the bhat is about the third or fourth in the region worst performer but looking elsewhere in the thai bhat through the month to date is the worst performer, they are under pressure at levels we have not sensing seen since november last year as the dollar keeps powering ahead. This is bloomberg. sfx stone wheel crafting the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. You dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh rishaad the son of the former singapore Prime Minister hit with market manipulation charges. It is the latest in alleged financial crimes in the state and a separate Money Laundering case wind dating widening. Our guest joins us from singapore. What is this . This latest case involves the son of a former Prime Minister and the 54yearold is accused of conspiring with others to create a misleading appearance on the price of the securities. He was formally ceo and this took place in 2018 and this 54yearold is also accused of pushing up the price of the Company Securities through his personal trading account. We know that he has been handed 39 charges under the securities and trading act and if convicted he could face a jail term of up to seven years, a fine of up to 250,000 singapore dollars for each charge. We know that the time periods in the charging documents coincide with volatile moves and behaviors in the company he was formally ceo of. Rishaad yeah, and i was talking earlier with you about what happens now with regards to this Money Laundering scandal. What are banks doing now to prevent further repetition of what has been happening . Indeed. If we look at how this Money Laundering scandal, separate of course from this case involving the son of the former Prime Minister, it has taken a lot of tension in the lion city and singaporean lenders are taking steps to tightening scrutiny around these chinese bond clients with overseas passports, other passports, so it is part of an extension of the antiMoney Laundering framework in the country. We are hearing about how the value of the assets seized in this case is now 2. 4 billion singapore dollars, more than double the original amount which included luxury cars, homes, cash as well. We are hearing almost 14 million singaporean dollars in cryptocurrencies have been seized. For those not following this Money Laundering case as closely as we have been singapore, this is drawing the attention onto the loopholes that potentially have allowed this massive amount of wealth to be accumulated by this alleged Crime Syndicate who have channeled their overseas crime proceeds, so that the banks are taking steps to close some of these gaps. Rishaad all right. Thank you. Looking at the scandal surrounding the x Prime Minister son and looking at the aftermath of Money Laundering cases as well. Equity markets are on the way down and we are seeing losses across the board. Lets look at the msci asia index and their we code looking at those movers there as well just seeing a bit of strength for property but the vast majority of stocks on the way down, 267 currently on the way up, so certainly in favor of the people who are bearish to date at least. Were looking at the bond picture too with that Federal Reserve hawkish hold as it were. If we had a flatter Treasury Curve it with suggests a severe economic downturn in the u. S. With fed chairman Jerome Powell saying it is not a soft landing for his baseline expectation. Japanese tenure yields at levels we have not seen since what, 2014, ahead of the boj decision day tomorrow. Day tomorrow. Every business deserves a great deal. Thats why comcast business is launching the mobile made free event. With our business internet, new and existing customers can get one year of unlimited mobile for free. Its our best internet. Powered by the next generation 10g network and with 99. 9 reliability. Plus one line of free mobile for an entire year. Its the mobile made free eventhappening now. Get started for just 39 a month. Plus, ask how to get one free line of unlimited mobile. Comcast business, powering possibilities. Rishaad china markets heading for their lunch break. This is what its looking like, the doldrums for msci asia pacific. Stocks set for 10 month lows and pessimism reigning supreme. Some key gauges heading for theres lows level since november partly down to the selloff worsening due