Bloomberg Daybreak: Asia Edition

Fabien Yip, a market analyst at IG International, discusses the implications of Trump's decision to allow Nvidia's H200 chips to China with a 25% surcharge, emphasizing the potential market impact and Asian suppliers' roles. Terry Flew, a Professor at the University of Sydney, dives into Australia's new law regulating social media for under-16s, exploring enforcement challenges and concerns about pushing young users to alternative online spaces. Both guests shed light on the delicate balance between innovation, regulation, and youth safety.

Mark Matthews, Head of Asia Research at Julius Baer, delves into the anticipated Federal Reserve rate cut and its repercussions on Asian markets, particularly the yen and BOJ policy. He emphasizes the significance of Australia’s rate adjustments and suggests investment opportunities in corporate bonds. Brian Fowler, a Bloomberg journalist, sheds light on Japan's recent economic data, linking stronger wage growth to potential rate hikes by the BOJ, while addressing concerns over GDP shrinkage and the government's new stimulus package.

Stuart Paul, a U.S. economist at Bloomberg Economics, dives into the Fed's upcoming decisions, analyzing potential interest rate changes and the impact of new regional voters. Cybersecurity expert Jordan Robertson highlights the rise of ransomware and the interplay with cryptocurrency, detailing threats to critical infrastructure while discussing AI's evolving role in cyber operations. Finally, economist Eric Zhu examines China's deflationary challenges and prospects for growth, suggesting modest stimulus measures to stimulate domestic demand.

James Thorne, Chief Market Strategist at Wellington-Altus Private Wealth, shares insights on the Federal Reserve's policy expectations and its implications for the markets. He discusses the persistent inflation driven by services and shelter, while arguing that the broader inflation situation isn't dire. Thorne also emphasizes the need for Canada to enhance its resource processing capabilities to improve competitiveness. Moreover, he touches on Canada's relationship with China and the strategic importance of pipeline exports.

Mark Cranfield, a Bloomberg Markets Live strategist, shares insights on the dollar's potential weakening as global yield differentials narrow. He also highlights South Korea's robust market driven by policy shifts and AI advancements. Adam Turnquist, Chief Technical Strategist at LPL Financial, discusses the implications of recent ISM and PCE data against the backdrop of expected Fed rate cuts. He emphasizes a bullish outlook for 2026 and the importance of focusing on ROI in AI investments, particularly in emerging markets.

Frederic Neumann, Chief Asia Economist at HSBC, discusses South Korea's impressive GDP growth of 1.3% and its implications, highlighting a K-shaped recovery led by AI. He notes that despite strong headlines, consumer spending remains weak and risks in China loom. Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, offers insights on U.S. inflation and the Federal Reserve's potential policies. He views cryptocurrencies as a key risk barometer for market trends and recommends diversifying beyond U.S. assets amid rich valuations.

Joy Yang, Head of Product Management and Marketing at MarketVector Indexes, discusses the rebound of Asian stocks and the importance of AI and sector selection, particularly in China. Tim Pagliara, Founder of CapWealth, analyzes the recent cryptocurrency sell-off, which liquidated nearly $1 billion in leveraged positions, linking it to broader market volatility. They explore the rising Japanese yields, the implications for global markets, and the critical investment needed for AI infrastructure.

Ileana Jain, an Economist at Westpac International specializing in Asia-Pacific macroeconomics, shares insights on China's economic slowdown and its implications for the region. She highlights the continued contraction in China's manufacturing sector and suggests targeted stimulus to regain consumer confidence. Jain examines Japan's vulnerability to reduced Chinese demand and discusses how Asian economies are sensitive to external shifts. The conversation also touches on inflation trends in Australia and the impact of U.S. monetary policy on regional markets.

Mandeep Singh, Global head of tech research at Bloomberg Intelligence, dives into AI-driven demand affecting CrowdStrike and Snowflake. He highlights the challenges and growth opportunities in hyperscaler clouds. Jennifer Zabasadja, Bloomberg's chief Africa correspondent, discusses the evolving relationships between Africa and the Middle East, as well as debt sustainability dynamics. Shirley Zhao, a consumer companies reporter, explores the LaBubu toy phenomenon, revealing its ties to K-pop and the psychology behind Pop Mart's retail success.

Paul Dobson, Executive Editor for Asia Markets at Bloomberg, dives into Tokyo's surprising 2.8% core CPI, suggesting a potential rate hike from the Bank of Japan. He discusses the political factors that may cause the BOJ to hesitate and examines Japan's robust industrial output amid a weakening yen. The conversation shifts to China's real estate troubles, particularly Vanke's bond delay, raising red flags for investor confidence. Dobson also connects the dots between AI-driven tech momentum in Asia and shifting market sentiments, including Bitcoin's role as a risk appetite indicator.