# India PM Modi to Visit Indo-Pacific

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 6 Jul 2026, 16 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/b51a2b94-7658-47a6-9718-b47f0027f364/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Australia will host Indian Prime Minister Narendra Modi next week for an annual leaders summit. Modi will also visit Indonesia and New Zealand. For more on India and New Zealand's relationship, we speak to Ainsley Thomson, Bloomberg's Wellington Bureau Chief. Plus - Asian stocks and US equity-index futures pared their initial gains Monday as technology stocks lost momentum. Bloomberg TV hosts Yvonne Man and David Ingles spoke to Jun Bei Liu, Ten Cap Co-founder and Lead Portfolio Manager. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Welcome to the Daybreak
[0:12] Speaker 1: Asia podcast. I'm Doug Chrisner. This week, the South Korean
[0:16] Speaker 1: membership maker sk Heinez is set to make its US
[0:19] Speaker 1: stock market debut. Sk will raise twenty nine billion dollars
[0:24] Speaker 1: in the largest ever first time share sale by a
[0:26] Speaker 1: foreign company. But it comes as semiconductor stocks have struggled.
[0:31] Speaker 1: Here is Bloomberg's Mike Shepherd.
[0:33] Speaker 2: The socks as we know it affectionately, is down about
[0:37] Speaker 2: ten percent over the last five trading days before the
[0:41] Speaker 2: holiday break, and when we look at it, we see
[0:45] Speaker 2: that investors really are showing concerns that maybe this big
[0:49] Speaker 2: run up in AI infrastructure spending may not have legs
[0:53] Speaker 2: to continue much past twenty twenty six, at least at
[0:56] Speaker 2: the same pace.
[0:57] Speaker 1: That is Bloomberg's Mike Shephard. This week, Indian Prime Minister
[1:01] Speaker 1: narenbra Modi will be visiting Indonesia as well as Australia
[1:05] Speaker 1: and New Zealand. Modi's aim will be to strengthen strategic
[1:09] Speaker 1: ties in the region. For a closer look, let's bring
[1:11] Speaker 1: in Bloomberg's Ainsley Thompson. Ainsley is our Wellington Bureau chief
[1:16] Speaker 1: and she joins us from New Zealand's capital city. Thank
[1:19] Speaker 1: you so much for being here. This is not a
[1:21] Speaker 1: relationship that we talk a lot about, the one between
[1:24] Speaker 1: India and New Zealand, and from what I understand, the
[1:27] Speaker 1: two countries have recently signed a trade agreement. Give me
[1:32] Speaker 1: a sense of the dynamic here.
[1:34] Speaker 3: It is a fascinating dynamic because, as you say, you know,
[1:36] Speaker 3: it's not a relationship we discuss very often. We've got
[1:39] Speaker 3: one tiny country of five million people and one huge
[1:43] Speaker 3: country and the fact that they've managed to come together
[1:46] Speaker 3: and form this free trade agreement is fascinating and what
[1:51] Speaker 3: benefits it gives each country. For New Zealand, it's access
[1:54] Speaker 3: to this huge, huge market of one point four billion consumers.
[2:01] Speaker 3: For India's you kind of wonder what's in it so
[2:05] Speaker 3: much for India, But I think one of the important
[2:07] Speaker 3: parts is this free migrate not free migration, but Indian
[2:12] Speaker 3: people being able to come to New Zealand more easily
[2:15] Speaker 3: and the visas et cetera that they will gain out
[2:18] Speaker 3: of that is an important part of their agreement.
[2:23] Speaker 1: So when it comes to strengthening ties, I'm thinking in
[2:26] Speaker 1: the area of defense and national security, is this also
[2:30] Speaker 1: an important part of the relationship between New Zealand and India.
[2:34] Speaker 3: It's an important part, but not I think the main part.
[2:37] Speaker 3: I think definitely it's trade focused for New Zealand and
[2:40] Speaker 3: India to get that as smooth as possible between the
[2:43] Speaker 3: two countries.
[2:44] Speaker 1: And when I'm thinking of the exports in New Zealand,
[2:46] Speaker 1: is it primarily agriculture? Is that what we're talking about?
[2:50] Speaker 3: It is, but some of our key agricultural products are
[2:53] Speaker 3: not included, which is a bit of a sticking point,
[2:55] Speaker 3: like derry, which is obviously very important to New Zealand,
[2:58] Speaker 3: that is not included in the free trade agreement.
[3:01] Speaker 1: Can you help me understand how technology is playing out
[3:05] Speaker 1: in the economy of New Zealand and areas that might
[3:09] Speaker 1: be beneficial to India or vice versa.
[3:12] Speaker 3: One of our most successful companies is one that you
[3:15] Speaker 3: might be familiar with, which is rocket Lab. It is
[3:17] Speaker 3: listed in the US, but that was born out of
[3:20] Speaker 3: New Zealand. And aerospace is an area that we are
[3:24] Speaker 3: as a country pushing hard into. So there definitely could
[3:28] Speaker 3: be some synergies with India on that front. I think
[3:32] Speaker 3: that the venture capital space in New Zealand is particularly
[3:35] Speaker 3: interesting at the moment. We've got money coming in from
[3:38] Speaker 3: the Golden Visas and that is feeding these venture capital
[3:42] Speaker 3: funds to be able to put seed money into some
[3:45] Speaker 3: of these tech startups. Another really interesting company is one
[3:49] Speaker 3: called Halta, which is these colors which go on cows,
[3:53] Speaker 3: and that means that you don't have to put fences everywhere.
[3:57] Speaker 3: They kind of electronically control the movements of these there's cattle,
[4:01] Speaker 3: and that obviously could be of huge use in India
[4:03] Speaker 3: where there's an awful lot of cows. So things like that,
[4:06] Speaker 3: I think, you know, there's some interesting areas which could
[4:09] Speaker 3: be explored between the two countries.
[4:12] Speaker 1: Can you give me a sense of what the government
[4:14] Speaker 1: of New Zealand would like to see in improved relations
[4:18] Speaker 1: with India.
[4:19] Speaker 3: I think it would just, like you know, access to
[4:22] Speaker 3: this gigantic market is the main thing that they are
[4:26] Speaker 3: after there. For New Zealand, having Mody visit is huge.
[4:30] Speaker 3: There hasn't been a Indian Prime minister come here for
[4:33] Speaker 3: forty years, so it is a big moment. And also
[4:37] Speaker 3: the Indian diaspora in New Zealand has grown hugely. It's
[4:42] Speaker 3: now the third biggest ethnic group here and that's been
[4:45] Speaker 3: a huge change over the last twenty years, and when
[4:48] Speaker 3: you look at the migration data, it is you know,
[4:53] Speaker 3: usually the biggest group of migrants coming through in any
[4:56] Speaker 3: given quarter, so it is, you know, it is a
[4:59] Speaker 3: second eificants in New Zealand, this community.
[5:02] Speaker 1: So maybe we can establish a little bit of context
[5:05] Speaker 1: here and perhaps you could help me understand how well
[5:09] Speaker 1: the overall economy in New Zealand is performing. At a
[5:12] Speaker 1: time of Modi's.
[5:13] Speaker 3: Visit, It's not performing particularly well. So it's been since
[5:19] Speaker 3: COVID it's been in the doldrums, it's fair to say.
[5:22] Speaker 3: And this year it was looking like it was going
[5:24] Speaker 3: to be a better year, and then the war and Iran,
[5:28] Speaker 3: even right down at the bottom of the world, has
[5:30] Speaker 3: had a huge impact on us as well. So it's
[5:32] Speaker 3: now looking like possibly the economy might even contract in
[5:37] Speaker 3: the second quarter. So yes, any kind of bright spots,
[5:41] Speaker 3: any potential new markets, things like that people are really
[5:45] Speaker 3: looking towards and hoping that it helps with a pickup
[5:48] Speaker 3: in the economy.
[5:49] Speaker 1: So when I think of New Zealand, I think of
[5:51] Speaker 1: it as being a destination for travel and tourism, and
[5:55] Speaker 1: I'm wondering of whether that exists for Indians, whether they
[5:58] Speaker 1: are driven to recreate in.
[6:00] Speaker 3: New Zealand definitely, and I think they would be. You know,
[6:04] Speaker 3: both countries are keen to promote that as much as possible.
[6:08] Speaker 3: Travel between the you know, both New Zealanders traveling to
[6:13] Speaker 3: India and Indians traveling to New Zealand. Tourism is hugely
[6:18] Speaker 3: important to the New Zealand economy. So you know, they're
[6:21] Speaker 3: always looking to expand markets and to and to push
[6:24] Speaker 3: the message that New Zealand is a great destination and
[6:27] Speaker 3: they'll suddenly be doing that in India.
[6:29] Speaker 1: So one of the things I think it's fair to
[6:31] Speaker 1: say under the Trump administration the US has maybe retreated
[6:35] Speaker 1: a bit from the Indo Pacific. Is the elephant in
[6:38] Speaker 1: the room in any way the United States?
[6:42] Speaker 3: Potentially, Yes, because it does set up this tension between
[6:46] Speaker 3: you know, these two massive powers of China and India
[6:49] Speaker 3: and who's and who's you know, gaining more strategic advantage
[6:54] Speaker 3: in what countries. So yes, to an extent, I think
[6:58] Speaker 3: it does create you know, when there's a bit of
[7:00] Speaker 3: a vacuum, obviously countries, powerful countries try to jump in.
[7:04] Speaker 3: So I mean China has a huge influence in the Pacific.
[7:09] Speaker 3: India lis So but definitely emerging.
[7:13] Speaker 1: Okay, Ainsley, thank you so very much. We'll leave it there.
[7:15] Speaker 1: Bloomberg's Ainsley Thompson, our Wellington Bureau chief, joining us here
[7:19] Speaker 1: on the Daybreak Asia podcast. Welcome back to the Daybreak
[7:30] Speaker 1: Asia Podcast. I'm Doug Chrisner. Global equity markets are entering
[7:34] Speaker 1: the second half of the year on a cautious note
[7:36] Speaker 1: as investors way whether the AI driven rally can be sustained.
[7:41] Speaker 1: That's where we begin our conversation with June Bailieu. June
[7:45] Speaker 1: is co founder and lead portfolio manager at Tencap. She
[7:49] Speaker 1: spoke with Bloomberg TV host David Inglis and Yvonne Mann.
[7:53] Speaker 4: Can we start on Korea? Of course, what exposure do
[7:56] Speaker 4: you think I should have to career at this point?
[7:58] Speaker 5: Oh? Look, I think Korea at the moment you should
[8:00] Speaker 5: always have a bit of exposure because I think it's
[8:02] Speaker 5: still one of the most exposed market to the whole
[8:05] Speaker 5: AI trade. Even though it has done incredibly well. At
[8:08] Speaker 5: this stage, you're always seen it's a bit of profit
[8:10] Speaker 5: taking by the investors. It is. There's no way showing
[8:13] Speaker 5: that it is the end of the cycle. Area is
[8:16] Speaker 5: that it will continue to be underpinned, but absolutely has
[8:19] Speaker 5: to be part of the Asian portfolio.
[8:22] Speaker 6: Do you think that the character of this market has
[8:25] Speaker 6: changed right before? It used to be like I'm going
[8:27] Speaker 6: to watch what the hyperscalers say in the earnings and
[8:29] Speaker 6: then you know, this is going to be my reason
[8:30] Speaker 6: to buy career or is it more becoming its own
[8:33] Speaker 6: global AI driver?
[8:34] Speaker 5: Now? Absolutely? Look, I think it's it's a bit of
[8:37] Speaker 5: both as well. So you know, in the old days,
[8:39] Speaker 5: is that AI anything to do AI? Then then we
[8:41] Speaker 5: go to the career market and then to buy you know,
[8:44] Speaker 5: whatever the upside given the shortages and the like. I
[8:46] Speaker 5: think at this stage now the investors are questioning, you know,
[8:49] Speaker 5: are we getting enough return out of those areas? Perhaps
[8:52] Speaker 5: we should broaden out. We are seeing the same thing
[8:55] Speaker 5: in the US market as well. Instead of just piling
[8:57] Speaker 5: money into the Piper scalers or anyone talk about AI.
[9:01] Speaker 5: You know, your investors are now looking for the next
[9:03] Speaker 5: secondary impact companies or companies actually generating cash flows and
[9:07] Speaker 5: returns for out of the whole build out of the
[9:09] Speaker 5: AI infrastructure. So you know, my view is that the
[9:11] Speaker 5: investor is broadening out and become a little bit more
[9:14] Speaker 5: selective as well. Given the valuation pressure in some of
[9:17] Speaker 5: the areas, but career market will steal form a very
[9:19] Speaker 5: important part of the investor's portfolio.
[9:22] Speaker 4: So if CAPEX was formerly the best indicator for the agreed,
[9:26] Speaker 4: what is that indicator now?
[9:28] Speaker 5: Look, capex is still it's a very important indicator. But
[9:32] Speaker 5: what that is saying is that for the upcoming next
[9:34] Speaker 5: five to ten years or even longer, that it's underpinned
[9:38] Speaker 5: in terms of what's going into that space. And so
[9:40] Speaker 5: all the companies what investors looking for is really all
[9:43] Speaker 5: the companies that will benefit from that. It's actually not
[9:45] Speaker 5: the company who's spending the capex. So you know, so
[9:48] Speaker 5: investors not seeing that if you're spending quite a lot
[9:50] Speaker 5: of capex, then we're going to invest in your shares.
[9:53] Speaker 5: You know, whether which language model is going to win
[9:55] Speaker 5: out at the ultimately is becoming harder core for the
[9:58] Speaker 5: investors because every one is investing a lot of money.
[10:01] Speaker 5: You remember those companies Hyperscalers, their return will start to
[10:05] Speaker 5: deteriorate in the next few years as you know, the
[10:08] Speaker 5: depreciation come through as some of those capeks really hitting
[10:12] Speaker 5: their P and L. So you know, our view is
[10:14] Speaker 5: that don't sit in these names start going into other businesses.
[10:18] Speaker 6: And you said evaluation is becoming a bigger concern for you.
[10:21] Speaker 5: Yeah, absolute, Yeah, absolutely, Look, I think it's across all
[10:24] Speaker 5: the markets. We start seeing evaluation become an issue simply
[10:27] Speaker 5: because we're seeing the race cycles now moving up, absolutely
[10:30] Speaker 5: towards up. Now we're seeing a lot of central banks
[10:33] Speaker 5: are moving the interest rate to the high level. Fed
[10:36] Speaker 5: may or may not, but we're certainly expecting at least
[10:39] Speaker 5: one this year now. So that one that means is
[10:41] Speaker 5: that valuation is not going to expand expansion story is done.
[10:45] Speaker 5: It has to be an earning story. You know, for
[10:47] Speaker 5: the earning story to take place, it's less likely to
[10:51] Speaker 5: be the larger you know, if it's in the US market,
[10:54] Speaker 5: less likely to be the larger hyperscalers because you know,
[10:56] Speaker 5: the earning perhaps will be under pressure because of the
[10:59] Speaker 5: investment that's go into it.
[11:01] Speaker 4: Talk to a lot about the resource angle of AI
[11:03] Speaker 4: here and how that features, particularly in markets like Australia
[11:07] Speaker 4: for example, where you have a big commodity sort of present. Oh.
[11:10] Speaker 5: Absolutely, Look, I'm always a proponent of the Australian market.
[11:13] Speaker 5: So if i'm the resource and angle, so for every
[11:15] Speaker 5: data center that goes in you have to have all
[11:17] Speaker 5: these commodity precious metals such as the coppers and the like.
[11:22] Speaker 5: Australia is the market that has the biggest you know,
[11:25] Speaker 5: copper producer in the world, and then the whole long
[11:27] Speaker 5: chain of upcoming emerging producer in that space. And remember
[11:31] Speaker 5: copper as a commodity, it's actually very difficult now to
[11:34] Speaker 5: get approval from approval to get final you know, digging
[11:39] Speaker 5: out of the ground. It takes eighteen years. Now, that's
[11:41] Speaker 5: why you're seeing larger miners around the world are buying
[11:44] Speaker 5: existing assets. So it is something that you know, we
[11:47] Speaker 5: see supply continue to become constrained and demand is ever
[11:50] Speaker 5: increasing for that space. So that's a really interesting angle.
[11:52] Speaker 5: But aside from commodity, so you know, we're seeing the
[11:54] Speaker 5: whole area. So there's your energy, your utility, your pipelines,
[11:59] Speaker 5: electrification companies, your circuit board so memory obviously goes into
[12:02] Speaker 5: that space. So there's a whole long chain of you
[12:05] Speaker 5: know sort of businesses that go to that AI built
[12:08] Speaker 5: out infrastructure that we're seeing that investor is now taking
[12:11] Speaker 5: more interest in.
[12:12] Speaker 6: Yeah, I mean we talk about the under owned, loved
[12:18] Speaker 6: sort of records, right, I appreciate it. Yeah, I mean
[12:20] Speaker 6: how much does Australia you think deserve to have now
[12:24] Speaker 6: in this sort of like rotation, right, And I guess
[12:27] Speaker 6: I ask the question about China as well, just given
[12:29] Speaker 6: what we've been seeing in eight shares.
[12:31] Speaker 5: Yeah, absolutely, so I think both China and Australia plays
[12:34] Speaker 5: a really important role. China, especially especially the A share.
[12:37] Speaker 5: I think it does offer a lot of exposure to
[12:39] Speaker 5: their AI models, so, you know, and the in terms
[12:42] Speaker 5: of valuation differential is enormous.
[12:44] Speaker 4: I do see.
[12:45] Speaker 5: That is a you know, self contained market where there's
[12:48] Speaker 5: a lot of activity. You want to be invested in
[12:51] Speaker 5: that space, and it's unappreciated compared to the markets like career,
[12:55] Speaker 5: where we know there's still strong earnings momentum. But I
[12:57] Speaker 5: think you know, the next outperform will be the likes
[13:01] Speaker 5: of China. Australia is a little bit hidden as we
[13:03] Speaker 5: talk to it's not direct AI. We don't have the
[13:05] Speaker 5: other sexy likes. We are the pix and shovels they
[13:08] Speaker 5: call it, and then the raw material. So we are
[13:11] Speaker 5: actually already seeing that thematic emerging in the Australian market.
[13:14] Speaker 5: They are much cheaper, These companies are generating good cash flow,
[13:18] Speaker 5: good dividend, and then they now have their pipeline suddenly
[13:21] Speaker 5: just picked up enormously. And what's also interesting is the
[13:24] Speaker 5: Australian market in terms of data center investment, it's a
[13:27] Speaker 5: couple of years behind what's happening in the US. So
[13:29] Speaker 5: we are seeing what has been going so well in
[13:31] Speaker 5: the US now playing out in the Australian market with
[13:34] Speaker 5: a little bit of lag.
[13:35] Speaker 4: And as far as China's concerned, the earning story seems
[13:38] Speaker 4: to be the number one or the lack of an
[13:40] Speaker 4: earning story seems to be the number one concern. Do
[13:41] Speaker 4: you share that view or are you looking at something
[13:43] Speaker 4: else there?
[13:44] Speaker 5: Yeah, look, I think with the in the consumer fronts
[13:46] Speaker 5: certainly and corporates, so it's actually what do they call
[13:50] Speaker 5: it the kshavy economy, isn't it? So we've got the
[13:53] Speaker 5: one one part the investment across the AI and others
[13:56] Speaker 5: are doing incredibly well, whereas you know, in the consumer
[13:59] Speaker 5: fund the consumption is still pretty poor. I think the
[14:03] Speaker 5: confidence we are at least seeing the property market, you know,
[14:07] Speaker 5: still doing pretty badly, but it is stabilizing. So it's
[14:10] Speaker 5: the confidence we need to see real income coming through
[14:14] Speaker 5: and perhaps we'll still a few quarters away, but ultimately
[14:18] Speaker 5: with the you know, the consumer not really investing in there,
[14:22] Speaker 5: you know, in the housing market and the like, I
[14:24] Speaker 5: think it's a massive tail within into you know, the
[14:27] Speaker 5: share market. And given where some of those you know,
[14:29] Speaker 5: government protected directed space, you know, the opportunities are the technology,
[14:34] Speaker 5: the the AI and I think the opportunity is real there.
[14:38] Speaker 6: What would spark that rerating? I know you mentioned the
[14:40] Speaker 6: structural support, which is of course the pile of household
[14:43] Speaker 6: savings that many Chinese investors still have. Have we seen
[14:46] Speaker 6: any indication of that being deployed into financial markets?
[14:50] Speaker 5: Yeah? Sure, So last year we're actually seen quite a
[14:52] Speaker 5: bit of activity pulling through, you know, in terms of
[14:55] Speaker 5: the Chinese share market, the retail participation. Now clearly this
[14:59] Speaker 5: year is still some little bit a little bit softer,
[15:01] Speaker 5: But last year what we saw was really the evaluation expansion,
[15:04] Speaker 5: and this year we have to see the company's earnings
[15:07] Speaker 5: growth coming through. Now, the challenging thing is that we're
[15:10] Speaker 5: still waiting for the confidence to completely churn with the
[15:14] Speaker 5: real income growth, and I think that's still a couple
[15:16] Speaker 5: of quarters away.
[15:17] Speaker 1: That was June Bailou, founder and lead portfolio manager at
[15:20] Speaker 1: tencap speaking with Bloomberg TV host Yvonne Men and David I. Glace,
[15:25] Speaker 1: bringing you their conversation here on the Daybreak Asia Podcast.
[15:31] Speaker 1: Thanks for listening to today's episode of the Bloomberg Daybreak
[15:34] Speaker 1: Asia Edition podcast. Each weekday, we look at the story
[15:38] Speaker 1: shaping markets, finance, and geopolitics in the Asia Pacific. You
[15:42] Speaker 1: can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
[15:46] Speaker 1: or anywhere else you listen. Join us again tomorrow for
[15:49] Speaker 1: insight on the market moves from Hong Kong to Singapore
[15:53] Speaker 1: and Australia. I'm Doug Chrisner, and this is Bloomberg
[16:00] Speaker 6: Four

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