# Micron Forecast Shatters Estimates, Canada to Send Warships to Indo-Pacific

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 25 Jun 2026, 21 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/2c9ae881-2c87-4783-bcb3-b4740013c67b/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Micron Technology, the largest US maker of computer memory chips, surged in late trading after its quarterly sales forecast crushed Wall Street estimates, signaling that an AI-fueled growth run remains strong. Revenue will be approximately $50 billion in the fiscal fourth quarter, which runs through August, the company said in a statement Wednesday. Analysts estimated $43.2 billion on average. Excluding some items, profit will be about $31 a share, compared with a projection of $25.31. For more on the market reaction, we speak to Jed Ellerbroek, Portfolio Manager at Argent Capital Management. Plus - Canada plans to send warships to the Indo-Pacific in two deployments this year, its defense minister said, part of a move to deepen military ties with regional allies even as Ottawa also endeavors to build closer trade relations with China. Defense Minister David McGuinty speaks to Bloomberg TV host Shery Ahn See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
[0:11] Speaker 2: Welcome to the Daybreak Asia podcast. I'm Doug Prisner. Semiconductor
[0:15] Speaker 2: stocks are in focus. This is after Micron's better than
[0:18] Speaker 2: expected results after the US closed. The memory chip maker
[0:21] Speaker 2: reported numbers for the latest quarter above forecast, and on
[0:25] Speaker 2: top of that, Micron's outlook shattered expectations. And in another
[0:30] Speaker 2: sign of Micron's widening profitability, the company's adjusted gross margin
[0:35] Speaker 2: more than doubled last quarter to eighty four point nine percent.
[0:39] Speaker 2: So look for the semis to steal the limelight today
[0:42] Speaker 2: in Asian trading. For a closer look at market action,
[0:45] Speaker 2: let's bring in Jed Elbrook. Jed is portfolio manager at
[0:49] Speaker 2: Argent Capital Management. He's on the line from Saint Louis.
[0:53] Speaker 2: Thank you for being here. Pick up on the Microns
[0:56] Speaker 2: story here. What did you glean from what the company
[0:58] Speaker 2: had to say after the bell.
[1:02] Speaker 3: Two hundred dollars of earnings per share in calendar twenty
[1:06] Speaker 3: twenty seven is possible for Micron. I think that's kind
[1:11] Speaker 3: of been like the whisper the optimistic case from people
[1:15] Speaker 3: who own that stock over the last month or two,
[1:18] Speaker 3: and that seemed far fetched there for a little bit
[1:22] Speaker 3: but gosh, as we get closer to that, I think
[1:26] Speaker 3: they might be able to do it.
[1:27] Speaker 4: I mean, they reported twenty.
[1:28] Speaker 3: Five dollars a share of earnings, so annualize that that
[1:31] Speaker 3: gets you to one hundred in the quarter they just reported.
[1:32] Speaker 3: They're talking about thirty one dollars a share next quarter,
[1:36] Speaker 3: and they're talking about twenty to twenty seven being even
[1:41] Speaker 3: stronger than twenty twenty six, and just really remarkable price
[1:45] Speaker 3: increases seventy percent roughly quarter over quarter aggregate price increase
[1:50] Speaker 3: for Micron, that is, you run out of adjectives to
[1:54] Speaker 3: describe that.
[1:55] Speaker 4: That's truly incredible.
[1:57] Speaker 3: And you know, eighty four percent gross margin I think
[1:59] Speaker 3: you said, I mean that compares do in Video, which
[2:01] Speaker 3: has one of the highest gross margins I've ever seen
[2:03] Speaker 3: in my life for a hardware company in videos at
[2:05] Speaker 3: seventy four and Micron's you know, a thousand basis points
[2:11] Speaker 3: above that. So really incredible results, incredible outlook. If two
[2:15] Speaker 3: hundred dollars a share is you know, on the board
[2:19] Speaker 3: for calendar twenty twenty seven, that place is today's valuation
[2:22] Speaker 3: at the close, that just a little over five times
[2:24] Speaker 3: that earnings number. So yeah, so that stock's got to
[2:29] Speaker 3: go up, and that's what we'll see tomorrow, and it'll
[2:31] Speaker 3: drag with it all a semicap equipment, you know, Dell
[2:38] Speaker 3: and Hpe, maybe even in video and broadcount.
[2:42] Speaker 2: I'm thinking about price action that we may see later
[2:45] Speaker 2: from sk Heinex and Samsung in the South Korean session,
[2:49] Speaker 2: and we had word recently that sk Heinex is pursuing
[2:53] Speaker 2: a US listed ADR worth more than a twenty nine
[2:57] Speaker 2: billion dollars. I mean, does that concern you when companies
[3:00] Speaker 2: like sk Heinex come to market to try to raise
[3:04] Speaker 2: more money in the current environment. Yeah.
[3:08] Speaker 3: The you know, when I when I think of like
[3:10] Speaker 3: kind of huge landmark I POS, my mind immediately goes
[3:16] Speaker 3: to Blackstone in two thousand and seven.
[3:18] Speaker 4: Maybe maybe that's.
[3:20] Speaker 3: Too cynical and skeptical of me, but but yeah, I
[3:23] Speaker 3: mean the capital markets are wide open for these tech
[3:26] Speaker 3: hardware companies. The fact that they're doing huge IPOs, you know, SpaceX,
[3:33] Speaker 3: the model makers coming up in anthropic and open AI.
[3:36] Speaker 3: They're doing that because times are good and times won't
[3:39] Speaker 3: always be good, and so yeah, I think you need
[3:41] Speaker 3: to you need to view those I pos with some
[3:44] Speaker 3: some skepticism. After all, well informed, big smart shareholders are
[3:48] Speaker 3: picking this time to get some liquidity.
[3:52] Speaker 2: We heard from some of the big banks after the
[3:55] Speaker 2: bell today. We had the stress test here in the
[3:57] Speaker 2: US and all the big banks past that and so
[4:00] Speaker 2: now increased dividends, maybe some stock buyback plans. How are
[4:04] Speaker 2: you viewing the big banks in the US.
[4:09] Speaker 3: Yeah, I think financials are a bit of a bright
[4:11] Speaker 3: spot in a market that struggled to find bright spots
[4:15] Speaker 3: outside of the AI trade. And I think higher interest
[4:21] Speaker 3: rates benefits many of those banks, not all of them,
[4:24] Speaker 3: but many of them. We've seen regional banks in the
[4:27] Speaker 3: United States, the small and mid sized ones doing pretty well.
[4:30] Speaker 3: The bigger banks have been joining the party here recently
[4:34] Speaker 3: after taking a break a month or two ago. The
[4:37] Speaker 3: stress test results were good. I think that was expected
[4:39] Speaker 3: by investors. We will see hefty Sharry purchase and dividend
[4:43] Speaker 3: growth announcements here coming up over the next couple weeks,
[4:45] Speaker 3: and I think generally good earnings results, higher interest rates
[4:51] Speaker 3: are a good thing for most of them, and loan
[4:53] Speaker 3: growth is pretty good. I mean, the US economy is
[4:55] Speaker 3: resilient and strong and growing rapidly on the back of
[4:58] Speaker 3: this data center boom, and also high and high income
[5:01] Speaker 3: consumers continuing to spend with confidence, so.
[5:05] Speaker 2: It had a big pullback in the price of crude
[5:06] Speaker 2: oil today and that allowed rates to come down quite
[5:09] Speaker 2: a bit across the curve. I think the tenure was
[5:12] Speaker 2: down nine basis points in New York. And I think,
[5:14] Speaker 2: more importantly, the money market is retreating a bit from
[5:17] Speaker 2: its notion of aggressive FED tightening this year. I think
[5:21] Speaker 2: as recently as yesterday, that would be Tuesday in the US,
[5:25] Speaker 2: I think money markets had priced in about fifty basis
[5:28] Speaker 2: points this worth of tightening. Now that number is forty,
[5:31] Speaker 2: so we've come in a little bit. How are you
[5:34] Speaker 2: viewing the Fed's role in the current environment right now?
[5:39] Speaker 4: Yeah, I struggled to.
[5:44] Speaker 3: Envisional world where the FED raises interest rates prior to
[5:49] Speaker 3: the midterm elections and prior to these study groups that
[5:53] Speaker 3: new chair warsh has set up. I think they'll work
[5:57] Speaker 3: through several months of workflows were related to each that'll
[6:01] Speaker 3: buy them the time to get through the midterm elections
[6:05] Speaker 3: and and also wait and see if those declining oil
[6:09] Speaker 3: prices can yank down inflation numbers enough to get us,
[6:14] Speaker 3: you know, into the low threes and and maybe just
[6:16] Speaker 3: buy them some time to to see that the tariff impact,
[6:20] Speaker 3: you know, flow through, et cetera. So yeah, I think
[6:24] Speaker 3: that this, you know, the initial response to Warsh's press
[6:28] Speaker 3: conference was understandable. It was a pretty hawkish statement, and
[6:32] Speaker 3: so the market reacted to that. Now we're kind of
[6:34] Speaker 3: calming down off that a little bit. I think I
[6:36] Speaker 3: think that's a reasonable response, and I do think we're
[6:40] Speaker 3: on on pause here, you know, at least through November.
[6:43] Speaker 2: I'm wondering how you're thinking about geopolitics and whether or
[6:46] Speaker 2: not you think we're on the other side of the
[6:48] Speaker 2: curve here in terms of the US Iran war, whether
[6:52] Speaker 2: the worst is over and we can begin kind of
[6:55] Speaker 2: repricing inflation expectations longer term with the idea that we're
[7:01] Speaker 2: not going to see a flare up again. Is that
[7:03] Speaker 2: a reasonable assessment or do you think that there is
[7:05] Speaker 2: some risk that the market may be overlooking to some extent.
[7:10] Speaker 3: Yeah, that the market's response really throughout has felt like
[7:15] Speaker 3: kind of complacent and perhaps even overconfident, overly optimistic to me.
[7:20] Speaker 3: But I think I've been proven wrong. I think that
[7:22] Speaker 3: the market's been proven right. You know, oil prices never
[7:25] Speaker 3: got to that one fifty dollars a barrel level that
[7:28] Speaker 3: industry insiders and CEOs were talking about and fearing and
[7:32] Speaker 3: saying was just a week or two away if things
[7:34] Speaker 3: don't change, And things haven't changed, and we're not at
[7:36] Speaker 3: one fifty, we're at half that now. And so yeah,
[7:39] Speaker 3: so the market has sniffed this out and at this
[7:43] Speaker 3: point I wouldn't I wouldn't want to bet against the market,
[7:47] Speaker 3: and they're appraisal that we can look through this one.
[7:51] Speaker 2: So when you're identifying opportunities, are you more US focused
[7:54] Speaker 2: right now? Are you seeing anything offshore that looks interesting
[7:58] Speaker 2: to you?
[8:01] Speaker 3: Yeah, it's hard to find an economy that's growing as
[8:03] Speaker 3: dynamically as the United States, so that's where we start
[8:06] Speaker 3: and spend most of our time. But yeah, there are
[8:10] Speaker 3: a lot of exciting things happening in Asian markets. The
[8:13] Speaker 3: AI supply chains there are are robust, as you alluded
[8:17] Speaker 3: to earlier. So yeah, there, I think there are good
[8:19] Speaker 3: areas in lots of places in the world.
[8:22] Speaker 4: Europe is less compelling to us at the moment.
[8:25] Speaker 2: One of the things that's interesting is the relationship now
[8:28] Speaker 2: between the US and China. We had news today that
[8:31] Speaker 2: Ali Baba is being accused of illicitly accessing Anthropics claud
[8:36] Speaker 2: model after Anthropic decided to keep its products outside of China,
[8:41] Speaker 2: and Anthropic is alleging that Ali Baba used thousands of
[8:47] Speaker 2: fraudulent accounts to try to access a number of pieces
[8:52] Speaker 2: of information from Claude, including software engineering and agentic reasoning
[8:57] Speaker 2: here as a way of trying to create a rival
[9:00] Speaker 2: chatbot at a fraction of the cost. When you look
[9:03] Speaker 2: at the competitiveness between the US and China right now,
[9:07] Speaker 2: what do you come away with? Do you think that
[9:09] Speaker 2: there is a real risk that that China could come
[9:12] Speaker 2: away at the end of the day being the winner
[9:14] Speaker 2: maybe and the US not necessarily being in as strong
[9:19] Speaker 2: a position.
[9:22] Speaker 4: Yeah.
[9:23] Speaker 3: I think that the United States competitive position, especially in
[9:28] Speaker 3: model creation, is very strong. Yes, the Chinese are distilling
[9:35] Speaker 3: and you know, creating adaptations of the frontier US models
[9:41] Speaker 3: as quickly as they can, but that's that's different from
[9:44] Speaker 3: genuine innovation on their own. I think the United States
[9:46] Speaker 3: leads in that area and has a material lead. The
[9:49] Speaker 3: Chinese are following fast and you know liberally, you know,
[9:55] Speaker 3: borrowing and adapting as much as they can. I think
[9:57] Speaker 3: Anthropic is moving really quickly. I think open a I
[10:00] Speaker 3: is moving really quickly. There's really strong competition both within
[10:03] Speaker 3: the United States and globally. So yeah, I think the
[10:06] Speaker 3: United States has a lead, but I don't think it's
[10:08] Speaker 3: a comfortable lead. And yeah, I wonder if the US
[10:13] Speaker 3: model makers will continue. They've been taking steps to become
[10:17] Speaker 3: more and more cautious in releasing their newest, best models,
[10:24] Speaker 3: you know, out into the wild, and you wonder if
[10:27] Speaker 3: it gets to a point where they keep that leading
[10:30] Speaker 3: model proprietary for their own products, kind of shut off
[10:34] Speaker 3: the API to those for their own competitive reasons and
[10:38] Speaker 3: also for national security reasons.
[10:40] Speaker 2: Most definitely, Jed, thank you so very much for making
[10:43] Speaker 2: time for us. Jed Allerbrook there. He is portfolio manager
[10:46] Speaker 2: at Argent Capital Management. On the line from Saint Louis
[10:49] Speaker 2: here on the Daybreak Asia podcast. Welcome back to the
[10:59] Speaker 2: Daybreak Asia podcast time Doug Prisner. Canada is planning to
[11:03] Speaker 2: increase its military presence in the Indo Pacific. To that end,
[11:07] Speaker 2: the country's Defence Minister David McGuinty met earlier this week
[11:11] Speaker 2: with his Japanese counterpart in Tokyo, and McGuinty spoke with
[11:15] Speaker 2: Bloomberg TV host Cherry On about his mission.
[11:18] Speaker 1: Really good to have you here in the Tokyo STUDI
[11:20] Speaker 1: thank you for making the time. Thank you for having me,
[11:22] Speaker 1: especially since you're pretty busy. You brought a big, big delegation.
[11:26] Speaker 1: Tell us a little bit about why now and what
[11:28] Speaker 1: that symbolizes as well.
[11:29] Speaker 5: Well, it's the.
[11:30] Speaker 6: First time that a defense minister joins a trade minister
[11:33] Speaker 6: to lead such a mission. It's three hundred strong, one
[11:37] Speaker 6: hundred and seventy five organizations and companies from every sector.
[11:40] Speaker 6: About fifty of those companies are in the defense sphere.
[11:43] Speaker 6: So for us, this is a moment where we're continuing
[11:45] Speaker 6: to build, deepen, widen our relationship with Japan and also
[11:49] Speaker 6: in the context of the Indo Pacific where we're making
[11:51] Speaker 6: similar investments, spending the kind of time getting Canada back
[11:54] Speaker 6: in the groove, so to speak.
[11:56] Speaker 5: And when it comes to the Indo Pacific, tell us.
[11:58] Speaker 1: A little bit about that. Do you feel like has
[12:00] Speaker 1: retreated a little bit in the past and where do
[12:03] Speaker 1: you expect to see more involvement and cooperation with partners here?
[12:07] Speaker 6: Well, typically with the government to government, military to military,
[12:10] Speaker 6: business to business, which is a big focus right now.
[12:12] Speaker 6: Canada has upped its GDP spend on defense to over
[12:16] Speaker 6: two percent, achieving the.
[12:18] Speaker 5: Target of full five years ahead of schedule.
[12:20] Speaker 6: So we're very pleased now to get the resources that
[12:22] Speaker 6: we need to make these investments. So we are investing
[12:25] Speaker 6: heavily in rebuilding, rearming, rebooting our Canadian enforces. We also
[12:29] Speaker 6: have a new defense industrial strategy where we're investing heavily
[12:31] Speaker 6: in Canadian companies the defense sector. And we need to
[12:35] Speaker 6: do that together with good partners like Japan.
[12:38] Speaker 1: The NATO Secretary General trying to appeal to President Trump
[12:42] Speaker 1: side when it came to boosting their spending. It doesn't
[12:45] Speaker 1: necessarily seem to have worked. How is your relationship with
[12:48] Speaker 1: the United States, especially to military security concerns.
[12:52] Speaker 6: Listen, we have a Continental Security arrangement with the United
[12:54] Speaker 6: States managers of relationship. We have NORAD, of course, which
[12:57] Speaker 6: is the only bi national command.
[12:59] Speaker 5: In the world. It works well together. But you know
[13:02] Speaker 5: this is about.
[13:02] Speaker 6: Now for Canada expanding in this area here into the Pacific.
[13:06] Speaker 6: I've had meetings and arrangements with folks in Indonesia, the
[13:09] Speaker 6: Philippine Minister of Defense within Canada two weeks ago for
[13:12] Speaker 6: the first time.
[13:13] Speaker 5: Korea, Japan, of course, Australia is sold there.
[13:17] Speaker 6: Over the horizon radar system to Canada, the largest single
[13:21] Speaker 6: defense export in Australian history. So Canada is moving coherently
[13:25] Speaker 6: systematically into the region.
[13:27] Speaker 1: I mean, you are sending your warships to Indo Pacific
[13:30] Speaker 1: for port calls to Japan training as well exercises. Is
[13:35] Speaker 1: there a concern that that might be seen negatively by China.
[13:38] Speaker 5: It's not new.
[13:39] Speaker 6: We're recalibrating our relationship with China, but we're also, as
[13:42] Speaker 6: I say, we can do both at the same time.
[13:44] Speaker 6: We can recalibrate, but on defense, security and intelligence, we're
[13:47] Speaker 6: also reaching out to like minded, values driven, rules based
[13:50] Speaker 6: countries like Japan, and so far it is taking hold.
[13:54] Speaker 6: People are very receptive welcoming Canada. But the presence of
[13:58] Speaker 6: vessels in this area is not new for Cana.
[14:00] Speaker 1: What does recalibrating the relationship which kind of.
[14:03] Speaker 6: Mean, well, it means we had some period of difficulty
[14:05] Speaker 6: between Chinese and Canadian authorities, the two Michaels all that
[14:09] Speaker 6: year several years ago, but we're now rebuilding that relationship
[14:12] Speaker 6: on different fronts and this is exactly where we're at.
[14:15] Speaker 6: But this mission is really really focused on Japan, of course,
[14:18] Speaker 6: because of the depth of ability of talent AI research,
[14:22] Speaker 6: quantum cryptography. This is something we're looking at space maritime
[14:26] Speaker 6: domain awareness. There's a powerhouse here of talent and this
[14:30] Speaker 6: is exactly what we're looking to plug into. Also from
[14:33] Speaker 6: a Canadian perspective, because we know if we actually combine
[14:35] Speaker 6: our efforts here, we're going to do much better.
[14:38] Speaker 1: When it comes to these exercises and training in the region,
[14:40] Speaker 1: we always see them very regularly, but very regularly we
[14:44] Speaker 1: also get negative reactions coming from the likes of Beijing.
[14:49] Speaker 1: We have see intentions increase in the Taiwan Strait. Now
[14:52] Speaker 1: with geopolitical flash points like Ukraine, does that give Kada
[14:57] Speaker 1: also a different sense of responsibility when it hums to
[15:00] Speaker 1: different regions.
[15:01] Speaker 6: It would be it would be fair to say that
[15:04] Speaker 6: things have changed. Tensions have changed, the geopolitical has changed.
[15:09] Speaker 6: Canadians are realizing now that their geography won't necessarily protect them.
[15:13] Speaker 6: We saw, for example, in the Middle East, Iran deploy
[15:17] Speaker 6: a missile that actually traveled five thousand kilometers when we've
[15:20] Speaker 6: been told for over two decades they had no such
[15:23] Speaker 6: missile in their arsenal. So we understand that that change.
[15:26] Speaker 6: We understand the threat landscape has changed, but we're managing
[15:29] Speaker 6: our way forward cautiously, thoughtfully.
[15:32] Speaker 5: We're building these relationships.
[15:34] Speaker 6: We're moving into the Interpacific in a way we've planned
[15:37] Speaker 6: on doing so. In twenty seventeen, twenty eighteen, the pandemic hit.
[15:40] Speaker 6: And now that we have more resourcing as a result
[15:43] Speaker 6: of the two percent fund and we're well on the
[15:45] Speaker 6: way to the three point five percent fund, we are
[15:48] Speaker 6: in a position.
[15:48] Speaker 5: Now to do much more.
[15:49] Speaker 1: Is it possible to equate the Taiwan risk as a
[15:52] Speaker 1: Ukraine risk?
[15:54] Speaker 5: I wouldn't say that. I would say that it's a risk.
[15:57] Speaker 6: I would say that country cre are doing a phenomenal
[15:59] Speaker 6: job of managing their way through it. We've got to
[16:02] Speaker 6: keep talking. Most importantly, we got to keep the dialogue moving.
[16:05] Speaker 6: But this mission here is largely now about consolidating relationships
[16:10] Speaker 6: with Japanese actors in the business and the government in
[16:14] Speaker 6: many spheres. So this is what we're all about here.
[16:16] Speaker 1: Now.
[16:16] Speaker 6: That's why three hundred people decided to join us. It
[16:18] Speaker 6: was not really difficult, but here they are. We had
[16:20] Speaker 6: a major gathering last night of five hundred people, including
[16:24] Speaker 6: two hundred Japanese executives and leaders. I met with my
[16:28] Speaker 6: counterpart yesterday for a full hour Minister Koizumi. We had
[16:31] Speaker 6: a very good discussion about Canada Japan Japanese relations in
[16:34] Speaker 6: this area.
[16:35] Speaker 5: We're making progress.
[16:36] Speaker 1: I know that you also toured some frigates as well
[16:38] Speaker 1: earlier this week. Are there any specific defense porchious commitments.
[16:43] Speaker 1: We know that, of course, Japan has lifted most of
[16:46] Speaker 1: its export restrictions when it comes to military equipment.
[16:50] Speaker 6: Look, we're looking at all kinds of options and opportunities.
[16:53] Speaker 6: That's what the business folks have been doing here for
[16:54] Speaker 6: the last two and a half days. Japan is a
[16:57] Speaker 6: powerhouse in certain sections sectors, we're powerhouse and others. This
[17:00] Speaker 6: is about US procuring from Japan and Japan procuring from Canada.
[17:04] Speaker 6: That's the kind of trade that we're giving rise to
[17:06] Speaker 6: in our defense industrial strategy. And I know that Japan
[17:09] Speaker 6: is also looking to see how they can accentuate their
[17:11] Speaker 6: own That's what the Minister in Nine Parts spoke about yesterday.
[17:14] Speaker 6: So it's very encouraging. We're like minded. We have the
[17:17] Speaker 6: same values. We're rules based. We believe it in the
[17:20] Speaker 6: international order, we believe in the United Nations, we believe
[17:22] Speaker 6: in in dispute resolution.
[17:24] Speaker 5: That's why we're pleased to be.
[17:25] Speaker 1: Here when it comes to really cooperation between smaller nations.
[17:30] Speaker 1: We have seen the global Combat Air program as well
[17:33] Speaker 1: between Japan, Italy and the UK as well. How does
[17:36] Speaker 1: kind of view such partnerships.
[17:39] Speaker 6: Well, we view these opportunities to come together in pool
[17:43] Speaker 6: resources and research and capacity as a positive thing. Many
[17:47] Speaker 6: small countries, smaller countries. I would hardly classify Japan as
[17:50] Speaker 6: a small country. It's an economic powerhouse. Our countries can
[17:53] Speaker 6: come together, take our best, our brightest, combine our efforts
[17:57] Speaker 6: and do well. We can do well obviously for our people,
[18:00] Speaker 6: can do well in terms of our industrial sectors.
[18:02] Speaker 1: With Canada be considering perhaps joining that initiative.
[18:06] Speaker 6: Canada's manifested an interest. Canada is monitoring it closely. It's
[18:09] Speaker 6: very interesting to see how it's going forward. But right
[18:12] Speaker 6: now we're so busy executing on this into Pacific strategy.
[18:16] Speaker 6: We're continuing to stay in touch with our folks. I think, well, here,
[18:19] Speaker 6: we'll talk more about it when we get to the
[18:21] Speaker 6: Leader summit in NATO. I'm looking forward to seeing my counterparts,
[18:24] Speaker 6: as many of those who might be able to come
[18:25] Speaker 6: from Italy, Japan, and of course from the UK and
[18:28] Speaker 6: of course Iran.
[18:29] Speaker 1: The ongoing negotiations will be a key theme there. How
[18:34] Speaker 1: confident are you that we'll get an interim deal to
[18:37] Speaker 1: be a permanent one?
[18:37] Speaker 6: Always remain hopeful. There's no other way to be in
[18:39] Speaker 6: my view, we have to remain hopeful. Peace is the
[18:42] Speaker 6: best outcome. The alternative is never a positive one. So
[18:46] Speaker 6: I think that if we can help guide along both
[18:50] Speaker 6: parties and the negotiations encourage it, that's a good thing.
[18:53] Speaker 6: But we're also we remain available to be of assistance
[18:56] Speaker 6: in the multinational maritime mission that is being headed up
[18:59] Speaker 6: by their bad in the French. Canada has offered up
[19:02] Speaker 6: its own capacity vessels, the mining, cyber intelligence. We'll see
[19:08] Speaker 6: how that all comes together.
[19:09] Speaker 1: Before I let you go, we just saw a Prime
[19:12] Speaker 1: Minister car and the you're releasing a statement in terms
[19:14] Speaker 1: of a potential multilateral Security Defense Bank. What do you
[19:21] Speaker 1: think of that mechanism functioning as a World Bank and
[19:25] Speaker 1: is there any traction if this initiative were to be
[19:28] Speaker 1: pushed forward.
[19:28] Speaker 6: We think this is a phenomenal opportunity for all of
[19:31] Speaker 6: our countries because the Defense and Security Resilience Bank, the DSRB,
[19:36] Speaker 6: modeled after the World Bank and structure, would actually provide
[19:39] Speaker 6: a lot of capital and a lot of assistance to
[19:41] Speaker 6: small and medium sized enterprises right here in Japan, back
[19:44] Speaker 6: in Canada, in the.
[19:45] Speaker 5: Philippines, all over the world.
[19:47] Speaker 6: Any member state would be able to plug and play
[19:49] Speaker 6: in the system, be able to borrow, be able to capitalize.
[19:52] Speaker 6: We need more investment in the defense sector. This is
[19:55] Speaker 6: what this is intending to add.
[19:56] Speaker 1: Did you discuss this potential bank which your pan while
[19:58] Speaker 1: hearing what reaction did.
[19:59] Speaker 5: You gues We have. We've raised it on several occasions.
[20:02] Speaker 6: I think the government here is considering it as our
[20:04] Speaker 6: other countries, but right now we're in the process of
[20:08] Speaker 6: moving it along with other jurisdictions, so see if we
[20:10] Speaker 6: can get more interest.
[20:11] Speaker 2: That was David McGuinty, Defense Minister for Canada speaking with
[20:15] Speaker 2: Bloomberg TV host Cherry on bringing you that conversation here
[20:19] Speaker 2: on the Daybreak Asia podcast. Thanks for listening to today's
[20:24] Speaker 2: episode of the Bloomberg Daybreak Asia Edition podcast. Each weekday,
[20:28] Speaker 2: we look at the story shaping markets, finance, and geopolitics
[20:32] Speaker 2: in the Asia Pacific. You can find us on Apple, Spotify,
[20:35] Speaker 2: the Bloomberg Podcast YouTube channel, or anywhere else you listen.
[20:39] Speaker 2: Join us again tomorrow for insight on the market moves
[20:42] Speaker 2: from Hong Kong to Singapore and Australia. I'm Doug Prisner,
[20:47] Speaker 2: and this is Bloomberg

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