# US Says China Agrees to Spend Billions on Agricultural Goods

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 18 May 2026, 21 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/7efb19a3-df34-4e9a-83e3-b44e002b5399/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

China has agreed to purchase at least $17 billion of agricultural products from the US annually through 2028, the White House said in a fact sheet detailing President Donald Trump's two-day summit in China. A day earlier, the Chinese Ministry of Commerce released its own readout of the meeting, which said the US and China will adopt a series of measures, including mutually cutting levies on certain products. China did not provide specifics, adding that teams from both countries were still negotiating details, and the White House release was silent on tariffs. Trump previously suggested that tariffs did not come up in his meetings with Chinese President Xi Jinping. We spoke to Rebecca Choong Wilkins, Bloomberg's Asia EcoGov Correspondent. Plus - A selloff in global bonds extended as the deadlock over the Iran war drove oil prices higher, fueling inflation concerns and raising bets that central banks will need to keep tightening policy. Bloomberg TV hosts Haidi Stroud-Watts and Shery Ahn spoke to Kristina Hooper, Chief Market Strategist at Man Group. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
[0:10] Speaker 2: Welcome to the Daybreak Asia podcast. I'm Doug Chrisner. Global
[0:14] Speaker 2: bond markets are under pressure given worries over accelerating inflation.
[0:18] Speaker 2: US yields right now higher across the curve in the
[0:21] Speaker 2: Tokyo session, and earlier in the Japanese market, the tenure
[0:26] Speaker 2: JGB hit a yield of two point eight percent. Now
[0:29] Speaker 2: this week, G seven finance ministers and central bankers will
[0:32] Speaker 2: be meeting in Paris. Their priority will be to tackle
[0:35] Speaker 2: imbalances in financial and trade flows, and you can bet
[0:39] Speaker 2: that the recent sell off that we have seen in
[0:41] Speaker 2: global bond markets will be a topic. Sunday night in
[0:44] Speaker 2: the US, ed Yard Denny, head of yr Denny Research,
[0:47] Speaker 2: was saying the FED should remove its easing bias at
[0:51] Speaker 2: the June meeting, otherwise the market will conclude that the
[0:54] Speaker 2: FED is falling behind the inflation curve. At the same time,
[0:59] Speaker 2: we're getting more to tales about last week's summit between
[1:01] Speaker 2: President Trump and Chinese Leadershi Jinping. On Sunday, the White
[1:06] Speaker 2: House said that China has agreed to purchase at least
[1:08] Speaker 2: seventeen billion dollars in agricultural products from the US annually
[1:13] Speaker 2: through twenty twenty eight for a closer look at what
[1:16] Speaker 2: we learned as a result of that summit. I'm joined
[1:18] Speaker 2: by Bloomberg's Rebecca Chung Wilkins, corresponding with the Asia ECO team,
[1:24] Speaker 2: and she joins us from our studio in Singapore. Thank
[1:27] Speaker 2: you for being here. I know you covered the summit extensively.
[1:30] Speaker 2: Obviously it was a highly choreographed event, no major breakthroughs,
[1:35] Speaker 2: so it would seem few agreements. How would you characterize
[1:39] Speaker 2: this and maybe you could tease out what was most
[1:42] Speaker 2: significant for you?
[1:44] Speaker 3: Well, I'm going to poach from someone else who I
[1:46] Speaker 3: spoke to. You actually heard it, I think an excellent
[1:47] Speaker 3: way of putting it. Former US official who said there
[1:50] Speaker 3: was a lot of pomp and not a lot of
[1:52] Speaker 3: change in circumstance, but the pomp was important, and I
[1:57] Speaker 3: think in some ways that does kind of quite effectively
[2:00] Speaker 3: actuate what we saw. I think the most important element
[2:03] Speaker 3: is the approach from Beijing and the approach from presidencies
[2:06] Speaker 3: in Ping. This really was a leader who now with
[2:09] Speaker 3: the benefit of that leverage that has that choke hold
[2:13] Speaker 3: over rare earths and the supply chain there is coming
[2:16] Speaker 3: to the meeting and meeting the US, I think, in
[2:20] Speaker 3: Beijing's from the Beijing's perspective, really toe to toe, and
[2:23] Speaker 3: so we saw stronger language, particularly when it came to Taiwan,
[2:28] Speaker 3: and and a statement about Taiwan even while that meeting
[2:32] Speaker 3: was still going on, So a clear attempt, I think,
[2:34] Speaker 3: to try and set the agenda, set the public narrative there.
[2:38] Speaker 3: And then in other ways as well, Beijing coming out
[2:41] Speaker 3: in a very confident, very confident form, as well as
[2:47] Speaker 3: of course still offering Trump much of that special treatment,
[2:50] Speaker 3: much of that red craft bit treatment, and appealing to
[2:54] Speaker 3: sort of Trump's ego to some extent as well, and
[2:57] Speaker 3: we did see attempts to try and firm up and
[3:00] Speaker 3: shure up the personal nature of the relationship between these
[3:04] Speaker 3: two men. So for example, inviting Trump to visit him
[3:08] Speaker 3: in jong Nahai. We haven't seen that invitation extended to
[3:12] Speaker 3: a US leader since Obama. This is the sort of
[3:15] Speaker 3: very well guarded, quite secretive compound where top Chinese Communist
[3:20] Speaker 3: Party leaders live and work, and it's not a sort
[3:24] Speaker 3: of super exceptional to have that invitation to foreign leaders,
[3:28] Speaker 3: but it is quite rare to have such extensive access,
[3:32] Speaker 3: and of course lots and lots of warm words, warm
[3:34] Speaker 3: rhetoric exchanged on both sides.
[3:37] Speaker 2: So over the weekend we heard from Taiwan's President Leitchingda
[3:40] Speaker 2: reaffirming Taiwan's sovereignty at a time when President Trump, so
[3:45] Speaker 2: we are told to still weighing this fourteen billion dollar
[3:48] Speaker 2: arms sale to Taipei. What is your sense of how
[3:51] Speaker 2: the US is approaching this And I'm wondering if we
[3:54] Speaker 2: could put it in a context of the situation with
[3:57] Speaker 2: Iran and whether Trump could purty eventually try to get
[4:02] Speaker 2: a little bit of advantage here in getting President Shei
[4:06] Speaker 2: to weigh in on the Iranian situation, maybe for some
[4:10] Speaker 2: reconsideration about the way in which the US would support Taipei,
[4:14] Speaker 2: is that outside the realm of possibility.
[4:17] Speaker 3: Well, Trump himself has said that, you know, that potential
[4:22] Speaker 3: Taiwan arms deal to some extent does depend on China,
[4:27] Speaker 3: and that he said, you know, explicitly quote it's a
[4:29] Speaker 3: very good negotiating chip for US. So certainly I think
[4:33] Speaker 3: that is the US perspective, is that it can be
[4:35] Speaker 3: used in that way. I will say, going into the summit,
[4:39] Speaker 3: it was a bit of a sort of everyone was
[4:41] Speaker 3: kind of holding their breath. I think particularly Taiwanese officials,
[4:44] Speaker 3: and the anxiety was that Trump was going to break
[4:46] Speaker 3: with this president to negotiate the nature of that arm
[4:51] Speaker 3: sail and the actual content of it with Beijing. Now,
[4:55] Speaker 3: Beijing has always pushed to try and do this. It
[4:57] Speaker 3: always brings up this during meetings with with US presidents,
[5:01] Speaker 3: but the US has had this long standing sort of
[5:04] Speaker 3: diplomatic tradition back since the late eighties not to do this,
[5:08] Speaker 3: and Taiwan officials had said they were worried that they
[5:11] Speaker 3: were going to be sort of in their ways on
[5:13] Speaker 3: the menu when it came to the summit. Now we've
[5:16] Speaker 3: had slightly contradictory language from Trump and similar officials, but
[5:20] Speaker 3: it does seem that that diplomatic break with president didn't happen.
[5:24] Speaker 3: So there was this initial I think a bit of
[5:26] Speaker 3: a sigh of relief. Okay, Taiwan, we we've somehow just
[5:29] Speaker 3: skimmed over this without kind of somehow really changing the
[5:33] Speaker 3: status quo, which is so so firmly guarded. Since then,
[5:37] Speaker 3: as both sides have kind of recalibrated and kind of
[5:40] Speaker 3: seemed to have thought about and the messaging is kind
[5:42] Speaker 3: of trickling out, it does seem that this is still
[5:46] Speaker 3: somewhat uncertain, and that Trump at least does seem to
[5:50] Speaker 3: see to speak to your question that it is a
[5:52] Speaker 3: negotiating negotiating chip. Whether or not that specifically able to
[5:57] Speaker 3: kind of move the needle on Beijing's support for, you know,
[6:02] Speaker 3: trying to negotiate towards a ceasefire with Iran, I think
[6:05] Speaker 3: is still quite a big question mark. It was clear
[6:08] Speaker 3: sort of to me, particularly when you looked at those
[6:11] Speaker 3: very closing remarks between Trump and Sea just before the
[6:15] Speaker 3: whole summit was finishing up. You had them sitting down
[6:17] Speaker 3: for tea in jong Nanhai in that compound I mentioned,
[6:21] Speaker 3: and she it was all about the personal relationship. He
[6:24] Speaker 3: sort of said, we were going to give you seeds
[6:26] Speaker 3: from the roses grown in this compound, and he spoke
[6:30] Speaker 3: very much to the relationship between these two men. Trump, interestingly,
[6:33] Speaker 3: quite quickly, speaking off the cuff, or at leat apparently
[6:36] Speaker 3: off the cuff, brought it back to geopolitics, brought it
[6:39] Speaker 3: back to the issue of Iran, saying that China had
[6:42] Speaker 3: discussed Iran and reaffirming this message essentially that we had
[6:46] Speaker 3: throughout the two day trip that China and the US
[6:50] Speaker 3: position on Iran is not that far apart that China
[6:53] Speaker 3: also wants to see the straight reopen. The whole issue
[6:56] Speaker 3: has been that China is not actually willing to exert
[7:00] Speaker 3: that influence it may or may not have over Tehran.
[7:03] Speaker 3: And there is a more fundamental issue here, I think,
[7:05] Speaker 3: from Beijing's point of view, not just that it doesn't
[7:08] Speaker 3: want to become embroiled in a war that it doesn't
[7:12] Speaker 3: see itself as having any responsibility for having started, but
[7:16] Speaker 3: really that it's unfair for the US and for other powers.
[7:21] Speaker 3: And this is a narrative we've seen from state media
[7:23] Speaker 3: that it's unfair to impose and expect Beijing to step
[7:28] Speaker 3: in and be a peacemaker, and that is not a
[7:32] Speaker 3: kind of due and correct obligation to impose on it.
[7:36] Speaker 3: And so I think there is that kind of struggle
[7:38] Speaker 3: that on the one hand, although Beijing is seeking to
[7:41] Speaker 3: sort of project itself as a stabilizing force in the world,
[7:45] Speaker 3: as a responsible global state, there is this anxiety about
[7:51] Speaker 3: the unpredictability of dealing with Trump and also dealing with
[7:55] Speaker 3: any kind of potential ceasefire. So, you know, quite frankly,
[8:00] Speaker 3: just not a lot in it for Beijing at this
[8:02] Speaker 3: exact point in time.
[8:03] Speaker 2: I'm wondering if we can put this summit in the
[8:05] Speaker 2: context of what's happening in the Chinese economy right now,
[8:08] Speaker 2: maybe we can agree that there is a fair amount
[8:10] Speaker 2: of economic stagnation, and I'm thinking that she was probably
[8:15] Speaker 2: looking to draw attention away from that fact a little bit.
[8:18] Speaker 2: But I'm wondering, is it too much to say that
[8:21] Speaker 2: perhaps she felt as though he had the upper hand
[8:23] Speaker 2: in this summit.
[8:25] Speaker 3: I think she did feel he had the upper hand
[8:27] Speaker 3: in this and I think Beijing does feel And I
[8:29] Speaker 3: think it's really particularly around this point about rare earths
[8:32] Speaker 3: that essentially allowed them to negotiate that one year true
[8:37] Speaker 3: sort of you know, a year ago back in Busan
[8:39] Speaker 3: on the sidelines of APEX, that we had that meeting
[8:42] Speaker 3: with Trump, Trump and she and that essentially kind of
[8:44] Speaker 3: I think from Beijing's perspective, forced Trump's hand, force a
[8:49] Speaker 3: Trump administration to quite significantly narrow their ambitions when it
[8:53] Speaker 3: came to China. You know, initially we had a Trump
[8:56] Speaker 3: who was talking about actually trying to change the fundam
[9:00] Speaker 3: mental nature of the Chinese economy, trying to reshape the
[9:03] Speaker 3: Chinese economy. Now Trump is talking about much narrower and
[9:07] Speaker 3: much narrower scope of things. But I think your point
[9:10] Speaker 3: there about the economy is really important. When it comes
[9:12] Speaker 3: to China. The whole focus for Shi and for Beijing
[9:15] Speaker 3: has to be building this sort of so called fortress economy,
[9:18] Speaker 3: right that is able to be self sufficient and has
[9:21] Speaker 3: that buffer from the rest of the world. Now, to
[9:23] Speaker 3: some extent that is been relatively effective given the nature
[9:27] Speaker 3: of the global disruptions that we're seeing, not least of
[9:30] Speaker 3: course the straight of Horn moves. China absolutely has an
[9:32] Speaker 3: economic interest in wanting to see that reopened. But I
[9:36] Speaker 3: think the kind of key element here it also has
[9:39] Speaker 3: that tolerance for pain. It also has that buffer that
[9:43] Speaker 3: it can to some extent weight things out.
[9:46] Speaker 2: It was over the weekend that we heard from Chinese officials.
[9:49] Speaker 2: The Ministry of Commerce was essentially saying that it has
[9:53] Speaker 2: agreed with the US to establish some bilateral boards of
[9:57] Speaker 2: trade and investment. So the words seem to offer some
[10:02] Speaker 2: type of hope, and I'm thinking to your point that
[10:05] Speaker 2: this is going to be very calculated and perhaps very
[10:08] Speaker 2: slow and deliberate. I don't think anyone is going to
[10:11] Speaker 2: rush into any type of deal making anytime soon. Am
[10:14] Speaker 2: I wrong in that.
[10:16] Speaker 3: I think that's very right. I think that there is
[10:18] Speaker 3: still a bit of a sense of having been burnt
[10:21] Speaker 3: on both sides. I would say among multinationals, if you
[10:26] Speaker 3: think about the sort of fundamentals, the complexity of what
[10:28] Speaker 3: we're talking about, being either a US company trying to
[10:32] Speaker 3: operate or have business in China or have a supply
[10:35] Speaker 3: chain exposed to China, or a Chinese company with exposure
[10:39] Speaker 3: to the US, this is still a deeply, deeply complex landscape,
[10:43] Speaker 3: a deeply complex corporate landscape. So I'm speaking to a
[10:46] Speaker 3: sanctions lawyer about this and trying to make sense I
[10:49] Speaker 3: think from a point of view of corporates and companies,
[10:52] Speaker 3: what does the summit really mean? And what was interesting
[10:55] Speaker 3: I think is that despite all of that optimism and
[10:58] Speaker 3: the positivity, particularly around that low large business delegation that
[11:02] Speaker 3: came over and clearly kind of reinforce those sort of optimistic,
[11:06] Speaker 3: more positive tones, that there are arenas for US and
[11:09] Speaker 3: China businesses to kind of explore. The fundamentals on the
[11:13] Speaker 3: ground are still unchanged. For multinationals, this is still a
[11:17] Speaker 3: highly complex landscape that they're trying to navigate, and many
[11:21] Speaker 3: of these laws when it comes to thinking about sanctions,
[11:23] Speaker 3: sort of anti foreign interference policies and regulations and so
[11:28] Speaker 3: on are actually still relatively untested, so companies are still
[11:31] Speaker 3: trying to figure out what this means, where the lines
[11:34] Speaker 3: are in real time. So for multinationals who are already exposed,
[11:39] Speaker 3: who are already operating, I don't think that you know,
[11:43] Speaker 3: the sort of concrete outcomes from the meeting or all
[11:46] Speaker 3: of that sort of pomp for example, it doesn't change
[11:49] Speaker 3: the realities of how they're operating on the ground and
[11:51] Speaker 3: how complex that is right now.
[11:53] Speaker 2: And I think we can agree it's still an evolving
[11:55] Speaker 2: situation and as it continues to unfold. Rebecca, we'll have
[11:58] Speaker 2: you back. We can talk more with Rebecca Chung Wilkins
[12:01] Speaker 2: in the future. Our correspondent with the Asia ecogov team,
[12:05] Speaker 2: joining from Singapore here on the Daybreak Asia podcast. Welcome
[12:16] Speaker 2: back to the Daybreak Asia Podcast. I'm Doug Krisner. We
[12:19] Speaker 2: were talking about the inflation story earlier as it relates
[12:22] Speaker 2: to higher oil prices. On Sunday in the US, the
[12:25] Speaker 2: CEO of Double Line Capital, Jeff Gunlock, was saying it's
[12:29] Speaker 2: not possible to cut interest rates when the two year
[12:31] Speaker 2: Treasury is almost fifty bases points higher than the Fed
[12:35] Speaker 2: funds rate.
[12:37] Speaker 4: I think that, based upon the term structure of the
[12:40] Speaker 4: treasury market, the odds on bet is that the next
[12:43] Speaker 4: move by the Fed will be a hike. I know
[12:45] Speaker 4: that that was not the way we entered the year
[12:48] Speaker 4: on the consensus thinking people were looking for two rate
[12:50] Speaker 4: cuts this year, but the inflation market has simply not cooperated.
[12:55] Speaker 2: That is Jeff Gunlock, CEO of Double Line, speaking on
[12:58] Speaker 2: Fox News' Sunday Morning Futures. He went on to say
[13:01] Speaker 2: that his firm's models suggests the next print on Headline
[13:05] Speaker 2: CPI is going to begin with a four. For a
[13:09] Speaker 2: closer look at the inflation story, we caught up with
[13:11] Speaker 2: Christina Hooper. Christina is the chief market strategist at Man Group.
[13:16] Speaker 2: She spoke with Bloomberg TV host Heidi Stroud, Watts and
[13:19] Speaker 2: Sherry On.
[13:20] Speaker 5: Christina, the market continues to grapple with many of the
[13:23] Speaker 5: same themes that we've been stuck in, particularly when it
[13:26] Speaker 5: comes to the threat of high inflation and the threat
[13:29] Speaker 5: to growth from the strait of hor moves that doesn't
[13:33] Speaker 5: reopen sort of anytime soon, it seems, but we're seeing
[13:37] Speaker 5: the bond issue proving to be a bigger challenge.
[13:41] Speaker 6: Now absolutely well. I think one of the key triggers
[13:45] Speaker 6: was the CPI print last week, which was significantly higher
[13:50] Speaker 6: than the previous month's reading and really underscores the inflationary
[13:54] Speaker 6: pressures being created by the closure of the strait of
[13:57] Speaker 6: horror moves. And it's not just oil, it's natural gas,
[14:01] Speaker 6: it's helium, it's so many different really important commodities that
[14:07] Speaker 6: are part of supply chains, like the ultra important semiconductor
[14:14] Speaker 6: AI data center supply chain. So this is a very
[14:18] Speaker 6: significant issue and it's one that markets had been trying
[14:21] Speaker 6: to look through for a while, but it is staring
[14:26] Speaker 6: them in the face now because we got such a
[14:28] Speaker 6: hot CPI print, we also got a hot PPI print.
[14:32] Speaker 6: We're going to get more inflation readings from other countries
[14:35] Speaker 6: this week, and that really has been a significant catalyst
[14:40] Speaker 6: for driving up yields causing bond sell off. We also
[14:44] Speaker 6: have in the US particular concerns around fiscal sustainability with
[14:48] Speaker 6: a very large fiscal deficit that keeps growing because of
[14:52] Speaker 6: the war in Iran.
[14:55] Speaker 5: When it comes to that broader AI driven rally. To
[15:00] Speaker 5: get your assessments of some of the different markets that
[15:02] Speaker 5: perhaps have benefited and benefited to a lesser amount across
[15:05] Speaker 5: the region. Ride do you see a bit of frothiness
[15:08] Speaker 5: when it comes to markets like career and Taiwan? Do
[15:11] Speaker 5: you prefer sort of one the ones that have yet
[15:13] Speaker 5: to catch up the lacks of China for example.
[15:18] Speaker 6: Well, certainly valuations look attractive in China, and I think
[15:22] Speaker 6: China Tech has taken a very different approach to AI capex.
[15:27] Speaker 6: It has been more measured, more thoughtful, and so we've
[15:31] Speaker 6: seen far far fewer dollars or far fewer yen going
[15:36] Speaker 6: into Yuwan going into it. But what we have seen
[15:40] Speaker 6: is about ninety percent of the results of what has
[15:45] Speaker 6: occurred in the US. So for each yuan spent, more
[15:50] Speaker 6: has been achieved, arguably in terms of technology, in terms
[15:56] Speaker 6: of power, and so this is a compelling area for investors,
[16:03] Speaker 6: and I think this is arguably the next leg. I
[16:06] Speaker 6: think many will maintain exposure to US AI capex theme.
[16:12] Speaker 6: It's a big one, it's an important one, but I
[16:15] Speaker 6: think that the future is going to be about diversifying
[16:19] Speaker 6: or adding some exposure to China AI and that theme,
[16:23] Speaker 6: which is somewhat different, And again, valuations are more attractive.
[16:29] Speaker 1: What about the economic fundamentals of China. Of course, we
[16:32] Speaker 1: have the Trump Chee Summit, perhaps tensions also easing a
[16:36] Speaker 1: little bit between the two superpowers. Could that give a
[16:39] Speaker 1: little bit more momentum, especially if we see anything concrete
[16:42] Speaker 1: on tariff reduction.
[16:44] Speaker 6: So I think where there could be some important catalyst
[16:48] Speaker 6: would come from rare earth elements. That's an important part
[16:52] Speaker 6: of the AI CAPEX built out, It's an important part
[16:55] Speaker 6: of semiconductor's It's critical for the US in terms of
[17:03] Speaker 6: moving forward with technological innovation, and it is something that
[17:07] Speaker 6: the US doesn't have much access to. Certainly some rare
[17:12] Speaker 6: earth elements, but nowhere near enough. And of course the processing,
[17:17] Speaker 6: that ability to process them is largely owned by China.
[17:22] Speaker 6: So that to me would probably be the most important development, which.
[17:29] Speaker 1: Sort of brings me back to our initial conversation about
[17:32] Speaker 1: rising yields, because for markets like South Korea, you're seeing
[17:36] Speaker 1: these huge investments into some conductors artificial intelligence build out,
[17:40] Speaker 1: and you're thinking, Okay, this could actually cause some inflationary
[17:43] Speaker 1: issues and overheating for some of these economies. Could that
[17:48] Speaker 1: be a larger concern going down the line at a
[17:51] Speaker 1: time when, of course we're still contending with the oil shock.
[17:56] Speaker 6: Well, I think that inflation is a very big issue
[17:59] Speaker 6: for the US because it is such a consumer driven
[18:02] Speaker 6: economy and inflationary pressures, especially oil prices, impact consumers. They
[18:10] Speaker 6: tend to dampen demand because there are not enough dollars
[18:15] Speaker 6: for US consumers to spend on everything they spent before
[18:19] Speaker 6: when you have significant inflation. So I think that's quite problematic,
[18:23] Speaker 6: and of course it impacts the fed's decision making. If
[18:26] Speaker 6: we go back a month ago and we look at
[18:29] Speaker 6: FED funds futures, what we see is that the probability
[18:33] Speaker 6: there was a more than fifty percent probability of at
[18:36] Speaker 6: least one ratepun and today, if we look at FED
[18:39] Speaker 6: fund's futures the cmea FED watch tool, there's a more
[18:43] Speaker 6: than fifty percent probability of at least one rate hike.
[18:47] Speaker 6: That is a huge pivot over a relatively short period
[18:49] Speaker 6: of time, and it's due to concerns around inflation, and
[18:54] Speaker 6: that is going to arguably change the trajectory that FED
[18:58] Speaker 6: was expected to be on, and it could change it
[19:00] Speaker 6: further depending upon how much longer the strait of hormones
[19:04] Speaker 6: remains clothed.
[19:07] Speaker 1: At what point do multi decade highs JGB yields prompt
[19:11] Speaker 1: again this conversation the rule Japanese investors pull their money
[19:15] Speaker 1: from overseas investments and cause turmola cross markets.
[19:20] Speaker 6: I think it's prompting that question right now, and we're
[19:22] Speaker 6: starting to see certainly some movement there. I think that
[19:26] Speaker 6: Japanese investors are very enthusiastic about where yields are, and
[19:32] Speaker 6: I think it will prompt more in the way of
[19:35] Speaker 6: money flowing into the domestic bond market in Japan. That
[19:41] Speaker 6: makes sense. What it will do, though, is drive up
[19:45] Speaker 6: yields elsewhere, especially for example US treasuries. That's something we
[19:49] Speaker 6: have to worry about because when yields go up, typically
[19:53] Speaker 6: that exerts downward pressure on equities, especially longer duration equities.
[19:59] Speaker 2: That was Christina who Berg, Chief Market Strategistic Man Group,
[20:02] Speaker 2: speaking with Bloomberg TV host Heidi Stroud, Watts and Sherry
[20:05] Speaker 2: On bringing you their conversation here on the Daybreak Asia podcast.
[20:12] Speaker 2: Thanks for listening to today's episode of the Bloomberg Daybreak
[20:15] Speaker 2: Asia Edition podcast. Each weekday, we look at the story
[20:19] Speaker 2: shaping markets, finance, and geopolitics in the Asia Pacific. You
[20:23] Speaker 2: can find us on Apple Spotify, the Bloomberg Podcast YouTube channel,
[20:27] Speaker 2: or anywhere else you listen. Join us again tomorrow for
[20:31] Speaker 2: insight on the market moves from Hong Kong to Singapore
[20:34] Speaker 2: and Australia. I'm Doug Chrisner, and this is Bloomberg.

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