# Trump Offers Ship Assurances, South Korea Stock Selloff

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 4 Mar 2026, 18 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/c8139a15-0bdc-4be6-91d5-b4030019287b/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. The US-Israeli attack on Iran has destabilized the Middle East and threatens to deliver a new inflationary shock to the US economy by pushing up oil prices. There's also no clear sense of when or how it will end, raising the prospect of prolonged conflict and unforeseen consequences beyond the White House's control. Focus is on oil amid fresh attacks which flared in the Middle East as traders weighed a US plan to insure and escort tankers passing through the Strait of Hormuz, with traffic in the vital waterway all but halted. For more perspective, we spoke to Rob Haworth, Senior Investment Strategy Director, U.S. Bank Asset Management Group. Plus - South Korean stocks are experiencing significant declines amid heightened geopolitical tensions. Risk-off sentiment driven by the Iran war has been the primary catalyst for the selloff, with concerns about higher energy prices threatening growth in South Korea, the world's eighth-largest oil consumer. We heard from Kerry Craig, JPMorgan Asset Management Global Market Strategist. He spoke to Bloomberg TV Hosts Haidi Stroud-Watts and Avril Hong. See omnystudio.com/listener for privacy information.

## Transcript

[0:00] Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
[0:10] Speaker 2: Welcome to the Daybreak Asia podcast. I'm dek Krisner. Crude
[0:14] Speaker 2: oil prices rose for a third straight session in New
[0:16] Speaker 2: York Trading WTI closed up four point seven percent to
[0:20] Speaker 2: seventy four fifty six, and US diesel fuel futures rose
[0:24] Speaker 2: seven point seven percent. Now to be fair, prices did
[0:28] Speaker 2: retreat from session highs after President Trump said the US
[0:31] Speaker 2: would provide insurance guarantees and naval escorts for oil tankers
[0:36] Speaker 2: and other vessels passing through the Strait of Hormuz. That said,
[0:40] Speaker 2: war with Iran shows no sign of de escalation and
[0:43] Speaker 2: the outlook does remain precarious. For a closer look, I'm
[0:47] Speaker 2: joined by Rob Hayworth. He is senior investment Strategy director
[0:50] Speaker 2: at US Bank Asset Management Group, and Rob joins us
[0:54] Speaker 2: from our studios here in New York City. Thank you
[0:56] Speaker 2: for being here. Give me your sense of what the
[1:00] Speaker 2: markets are dealing with right now in terms of war
[1:02] Speaker 2: in Iran and how that compares with other periods of
[1:06] Speaker 2: instability that you have seen.
[1:08] Speaker 3: Well, yeah, I've been in the business maybe too long,
[1:10] Speaker 3: Doug right, thinking back to the Gulf War and other
[1:13] Speaker 3: events like that. Right, We've seen volatility like this before.
[1:17] Speaker 3: I think the interesting thing this time around is the
[1:20] Speaker 3: equity markets are a little calmer than the oil markets
[1:23] Speaker 3: and the gas markets. Right. We're seeing a lot more
[1:25] Speaker 3: volatility there than we are in the energy markets. I
[1:28] Speaker 3: think for us, what we continue to evaluate and what
[1:30] Speaker 3: investors are trying to evaluate day to day is one,
[1:33] Speaker 3: how long will this go on? Right? We knew the
[1:36] Speaker 3: Gulf War, for example, went on much longer than people anticipated. Right,
[1:40] Speaker 3: is this really just four weeks? If it's four weeks,
[1:42] Speaker 3: we can maybe wait a bit. Two, how high do
[1:44] Speaker 3: oil prices go and what impact does that have on
[1:47] Speaker 3: the consumers we entered twenty twenty six. We think the
[1:49] Speaker 3: consumers a really important part of this economic story, and
[1:53] Speaker 3: their ability to continue to spend amidst the refund season
[1:57] Speaker 3: and other things, right, remains really important. So as long
[1:59] Speaker 3: as energy prices don't get too high, that should be okay.
[2:03] Speaker 3: And then I think it's a question of duration, right,
[2:06] Speaker 3: I mean, we just have to think about duration. So
[2:08] Speaker 3: I think markets have been a little calmer than we
[2:10] Speaker 3: anticipated this time around, meaning equity markets.
[2:13] Speaker 2: The bond market, though, seems to be very concerned about
[2:16] Speaker 2: the possibility that we're going to see accelerated inflation. That
[2:19] Speaker 2: seems to be a prudent bed, wouldn't you say?
[2:23] Speaker 3: I think so, right, because I think you have a
[2:25] Speaker 3: FED that is really evaluating the data as we press ahead,
[2:28] Speaker 3: and we've heard that from multiple speakers, right, So maybe
[2:30] Speaker 3: the FED won't be cutting rates as quickly, and we
[2:33] Speaker 3: need to embed some inflation expectations in what is still
[2:36] Speaker 3: a fairly low ten year treasure yield at four point
[2:38] Speaker 3: one percent. When you think about an economy that's growing
[2:41] Speaker 3: at two percent with depending upon how you measure inflation,
[2:44] Speaker 3: two and a half percent CPI inflation, three percent PPI inflation, right,
[2:49] Speaker 3: I mean we you know, you could have a slightly
[2:52] Speaker 3: higher ten year treasury yield at this point. So I
[2:55] Speaker 3: think there's there's room for it to move a little
[2:57] Speaker 3: higher and accommodate those higher and.
[3:00] Speaker 2: So it fields back up a little bit at the
[3:02] Speaker 2: long end. To what extent could that destabilize the equity market?
[3:07] Speaker 3: Probably not as much given where we started the first
[3:10] Speaker 3: six months of the year. For six weeks of the year, sorry, Doug.
[3:14] Speaker 3: With that draw down in software stocks, right, we've seen
[3:17] Speaker 3: such a draw down in technology that you've seen valuations
[3:21] Speaker 3: repriced there, and what we're seeing is a fairly steady
[3:26] Speaker 3: SMP five hundred. Tech stocks have been much lower. You're
[3:29] Speaker 3: seeing better performance out of industrials and energy where valuations
[3:33] Speaker 3: have been low. So the interesting thing is we've probably
[3:37] Speaker 3: seen that valuation reset and tech for the most part
[3:40] Speaker 3: at this point, and there's probably doesn't have as much
[3:42] Speaker 3: of effect as much of an effect now as it
[3:45] Speaker 3: might have at the end of the year.
[3:47] Speaker 2: That said, are you tempted to rotate a little bit
[3:50] Speaker 2: internally within the equity space.
[3:52] Speaker 3: Yeah, we've been emphasizing global equities, which takes us away
[3:56] Speaker 3: from technology. We've been emphasizing global infrastructure. It's maybe we're
[4:01] Speaker 3: probably a little rich at this point in the energy space,
[4:03] Speaker 3: given oil is pushed up quite a bit, but we
[4:07] Speaker 3: would look for more rotation and pay attention to diversification
[4:10] Speaker 3: in smaller companies and in global infrastructure.
[4:13] Speaker 2: I was struck by the fact that in today's session,
[4:15] Speaker 2: this is Tuesday evening New York Times, so Wednesday morning
[4:18] Speaker 2: in Seoul, the cost is getting whacked quite a bit.
[4:21] Speaker 2: Now we know that as a part of this AI theme,
[4:24] Speaker 2: some of the memory chip makers names like Samsung, s
[4:27] Speaker 2: K Heinez have done exceptionally well. That seems to be
[4:31] Speaker 2: being repriced right now. Is this something that you think
[4:36] Speaker 2: global markets need to consider, the possibility that everything involving
[4:40] Speaker 2: artificial intelligence needs to be examined just a little bit.
[4:44] Speaker 3: Well, I think part of what's going on in Asia
[4:46] Speaker 3: is they're so dependent upon oil imports and energy imports
[4:49] Speaker 3: that they're much more sensitive to the price of oil
[4:51] Speaker 3: than we are for the moment. That said, I think
[4:54] Speaker 3: there is a bit of a reset going on with
[4:56] Speaker 3: artificial intelligence, but it's no less important, right. I certainly
[5:00] Speaker 3: heard in earning season the amount of investment in artificial
[5:03] Speaker 3: intelligence infrastructure from the big hyperscalers is going to go
[5:06] Speaker 3: up thirty plus percent in twenty twenty six. That's certainly
[5:09] Speaker 3: true globally. So there may be a bit of a
[5:12] Speaker 3: price reset in the near term as everyone's rethinking their
[5:15] Speaker 3: risk tolerance amidst this global turmoil, but there's probably a
[5:19] Speaker 3: floor beyond it and part of it to your point,
[5:22] Speaker 3: I mean, South Korea has had a tremendous run in
[5:25] Speaker 3: the last thirteen months, right if we look at twenty
[5:27] Speaker 3: twenty five, is spectacular.
[5:29] Speaker 2: So what's your view on the macro right now? In
[5:31] Speaker 2: terms of the US. You mentioned how important it is
[5:33] Speaker 2: for the consumer to be able to participate. Maybe we
[5:36] Speaker 2: can put a question mark over that at the moment,
[5:39] Speaker 2: But are you still constructive in terms of where equities
[5:43] Speaker 2: may end the year.
[5:45] Speaker 3: Yes, we are staying constructive, and i'd really highlight a
[5:48] Speaker 3: couple of things. So one, if we look at the
[5:50] Speaker 3: purchasing manager surveys that have come through, they're holding up
[5:53] Speaker 3: very well. Now that's pre Iran conflict data, not post
[5:58] Speaker 3: but still coming into it. Those fundamentals were very solid.
[6:01] Speaker 3: Retail sales will get Friday for another look, but certainly
[6:05] Speaker 3: the weekly retail sales data is holding up well. And
[6:09] Speaker 3: then earning season has been very good for the fourth
[6:12] Speaker 3: quarter and setting up higher expectations for the rest of
[6:15] Speaker 3: the year. So we think the fundamentals are here and
[6:17] Speaker 3: drawdowns are an opportunity for people to start picking their
[6:20] Speaker 3: positions as they press ahead for the longer term.
[6:23] Speaker 2: At what point do you begin to maybe consider the
[6:27] Speaker 2: off term elections, the midterms that we'll have in November,
[6:30] Speaker 2: and whether or not, if let's say the Democrats were
[6:33] Speaker 2: to regain control of the House, whether that is going
[6:37] Speaker 2: to be a significant development for markets. What do you think, Yeah, what.
[6:40] Speaker 3: We typically see in midterms on average is yes, a
[6:44] Speaker 3: little weaker performance going in and a little better performance
[6:47] Speaker 3: coming out, but statistically it's not very different. I think
[6:51] Speaker 3: we're going to have to be much later in the
[6:53] Speaker 3: cycle for the market to really start to pay a
[6:55] Speaker 3: lot of attention to midterms, because right now the president
[6:58] Speaker 3: is very much in control of agenda. He has the
[7:01] Speaker 3: tools he wants and needs to implement tariffs. Even though
[7:04] Speaker 3: he lost the AIPA tariff power, he has all the
[7:07] Speaker 3: other trade acts and believes he can carry out his
[7:10] Speaker 3: tariff needs. He's already been able to push to get
[7:13] Speaker 3: pushed through the One Big Beautiful Bill Act, which has
[7:15] Speaker 3: led to stimulus for consumers. So I think the market's
[7:20] Speaker 3: going to be a little sanguine about midterm elections, even
[7:22] Speaker 3: if it looks like there's going to be a shift
[7:24] Speaker 3: in power in Congress, because we're not pushing through a
[7:27] Speaker 3: lot before the midterm elections, and I'm not sure there's
[7:30] Speaker 3: a lot the president will want from Congress after the
[7:33] Speaker 3: midterm elections either.
[7:34] Speaker 2: What is the most significant development outside of what we
[7:37] Speaker 2: have seen in the crude oil space, What is the
[7:39] Speaker 2: most significant development for you that you're kind of hanging
[7:42] Speaker 2: your hat on if you have to maybe be a
[7:45] Speaker 2: little tactical change course in the equity market. Is there
[7:48] Speaker 2: something that's happened recently that's created a bit of rethink.
[7:52] Speaker 2: One thing that jumps to my mind is the research
[7:54] Speaker 2: report from Satrini a couple of weeks ago, where everybody
[7:58] Speaker 2: was kind of re examining the thesis of around AI disruption.
[8:01] Speaker 2: We saw how it hit various industries, software companies, wealth
[8:06] Speaker 2: management firms. Is there something that's happened recently that is
[8:10] Speaker 2: really giving you cause to be more reflective than usual?
[8:13] Speaker 3: So I'd think about two things. So one, relative to
[8:16] Speaker 3: artificial intelligence, we were emphasizing diversification before this all went down,
[8:22] Speaker 3: right before we saw that draw down, we'd still emphasize
[8:25] Speaker 3: it coming out right. So if you've been overweight artificial intelligence,
[8:29] Speaker 3: maybe is not not the time to get back overweight.
[8:32] Speaker 3: But if you'd been taking advantage of other sectors and
[8:35] Speaker 3: you've had your run up and energy and industrials and
[8:37] Speaker 3: your underweight artificial intelligence, we'd look at that. I think
[8:40] Speaker 3: the second factor we're paying attention to, but we don't
[8:43] Speaker 3: think it's a long term problem yet, is private credit.
[8:47] Speaker 3: I think the fallout from a couple of companies and
[8:51] Speaker 3: their redemption issues speaks to how difficult it is in
[8:56] Speaker 3: private credit to match up duration properly. Need to pay
[9:00] Speaker 3: attention to the liquidity terms of a fund, it's redemption
[9:04] Speaker 3: period's relative to its underlying investments. And that's one of
[9:06] Speaker 3: the problems I think we're seeing. We'd watch for if
[9:10] Speaker 3: it means that there's an underlying underwriting problem, maybe a
[9:14] Speaker 3: distress or a default problem. We're not seeing that yet, right.
[9:17] Speaker 3: We're actually seeing defaults come down when we look at
[9:21] Speaker 3: the bank loan space, right, this is a fairly concentrated problem,
[9:24] Speaker 3: but certainly those stocks have been hurt very badly. You
[9:28] Speaker 3: see you're seeing discounts to nav and some of those
[9:33] Speaker 3: BDC vehicles. Right. That's something we're going to have to
[9:36] Speaker 3: watch and make sure it's okay. We think there's still
[9:38] Speaker 3: opportunity in private credit that we'd pay attention to slightly
[9:41] Speaker 3: different security.
[9:42] Speaker 2: If there is a question about the strength of the
[9:44] Speaker 2: economy overall and the degree to which it may be
[9:48] Speaker 2: negatively impacted by what we're seeing play out and energy,
[9:51] Speaker 2: How do you feel about small caps right now?
[9:54] Speaker 3: Yeah, they've certainly had a tougher go in the last
[9:56] Speaker 3: couple of weeks, and I think a lot of that
[9:59] Speaker 3: has to do with the backup we've seen in rates,
[10:02] Speaker 3: right and so I think if we can get through
[10:04] Speaker 3: this in short order and the FED looks like it
[10:09] Speaker 3: is going to cut rates some more, small caps are
[10:11] Speaker 3: really well positioned. I think if energy costs stay elevated,
[10:17] Speaker 3: you know it's going to be a little tougher road
[10:20] Speaker 3: for small companies at this point.
[10:22] Speaker 2: So at the moment, I think the money market is
[10:24] Speaker 2: betting on only forty five basis points in FED easing
[10:27] Speaker 2: between now and the end of the year. So that's
[10:30] Speaker 2: less than two full quarter point cuts. Is that the
[10:33] Speaker 2: way you see things right now? I mean, how are
[10:36] Speaker 2: you evaluating what we're likely to see from the Fed?
[10:38] Speaker 3: Yeah, I think we're very much waiting as they are
[10:41] Speaker 3: for data. I mean, one of the interesting things for
[10:44] Speaker 3: us when we look at the December dot plot, and
[10:46] Speaker 3: I know that's a little old as we're in March now,
[10:48] Speaker 3: but when we look at the December dot plot, what
[10:50] Speaker 3: we saw was seventeen forecasts with a lot of we
[10:54] Speaker 3: don't know what's going to happen, right, We're just not
[10:57] Speaker 3: sure Some of them thought they needed to cut. Some
[10:59] Speaker 3: of them thought they could stand pat and I think
[11:02] Speaker 3: that's very much based on the speakers. Where the committee remains.
[11:05] Speaker 3: We'll look hard at the march stop plot to see
[11:07] Speaker 3: what they're saying. But I think we're all a little
[11:10] Speaker 3: data depending at this point to tell us how many
[11:12] Speaker 3: cuts we're going to get, kind of no matter what.
[11:15] Speaker 3: And the surprising thing has been PPI producer prices came
[11:18] Speaker 3: in a little hotter, PCE personal consumpject expenditures came in
[11:23] Speaker 3: a little cooler. I think it's important to see where
[11:26] Speaker 3: inflation comes in, and it's going to be important to
[11:27] Speaker 3: see where Friday's jobs data comes in. Right are we
[11:30] Speaker 3: still is the jobs market still robust? Or does the
[11:33] Speaker 3: FED need to worry about a slowing labor market?
[11:36] Speaker 2: Okay, Rob, thank you so much. We'll leave it there.
[11:38] Speaker 2: Rob Hayworth is senior investment strategy director at us Bank
[11:42] Speaker 2: Asset Management Group. Joining us here on the Daybreak Asia Podcast.
[11:53] Speaker 2: Welcome back to the Daybreak Asia Podcast. I'm deg Krisner.
[11:56] Speaker 2: We're seeing a significant decline in South Korean stocks as
[12:00] Speaker 2: the result of the war in Iran. Consider the fact
[12:03] Speaker 2: that South Korea is a major oil importer. Now, the
[12:06] Speaker 2: COSPY was down by as much as six percent earlier,
[12:09] Speaker 2: and chip heavyweights like Samsung and sk Heinex were the
[12:13] Speaker 2: big drags. That's where we begin our conversation with Carrie Craig,
[12:17] Speaker 2: carry is the global market strategistic JP Morgan Asset Management.
[12:21] Speaker 2: He spoke with Bloomberg TV host April Hong and Heidi
[12:24] Speaker 2: Stroud Watts.
[12:25] Speaker 4: Carrie, what stood out to us was the decline that
[12:29] Speaker 4: we saw in a market, South Korea that had been
[12:32] Speaker 4: leading the pack higher for much of this year. I mean,
[12:35] Speaker 4: how are you viewing the ructions we're seeing in South
[12:38] Speaker 4: Korea at the moment?
[12:42] Speaker 5: Good morning, Well, I think what we're seeing across the
[12:44] Speaker 5: Asian Morning Open here as obviously a continuation of a
[12:47] Speaker 5: bit of the sell off we saw yesterday in the US.
[12:49] Speaker 5: There's still the concerns around the escalation of the conflict
[12:52] Speaker 5: in the Middle East and how long it could last,
[12:54] Speaker 5: and then the knock on effects from the potential closure
[12:57] Speaker 5: of that straight of hor Moose for a longer period
[12:59] Speaker 5: of time, which would flow through to restrict energy that
[13:03] Speaker 5: was available to markets like Korea and Japan who are
[13:05] Speaker 5: big energy importers. So I think that's probably on the
[13:08] Speaker 5: macro front, and then on the market front. Obviously, markets
[13:10] Speaker 5: there have done very well, so you're probably seeing continued
[13:13] Speaker 5: repositioning by investors taking a little bit of what's done
[13:16] Speaker 5: very well in their portfolios looking to rotate that into
[13:19] Speaker 5: more defensive positioning as they sort of away what the
[13:22] Speaker 5: scenarios may play out in the Middle East and the
[13:26] Speaker 5: duration of which is a big question at the moment.
[13:29] Speaker 5: So I think it's probably a little bit more of
[13:31] Speaker 5: the rotation within portfolios that's driving this, rather than thinking
[13:35] Speaker 5: about a big flight away from risk assets at the moment,
[13:39] Speaker 5: given the questions we still have around the severity and
[13:42] Speaker 5: duration of what the conflict in the Middle East may
[13:44] Speaker 5: look like.
[13:47] Speaker 4: Do you think then there's more selling to go When
[13:49] Speaker 4: it comes to Korean assets.
[13:53] Speaker 5: I think the market there has done very well and
[13:55] Speaker 5: it's been underpended by a very strong secular theme around
[13:58] Speaker 5: both the AI stocks. While I was thinking about some
[14:00] Speaker 5: of the defensive positioning that comes through in terms of
[14:03] Speaker 5: the build out in Europe given their focus on wanting
[14:06] Speaker 5: to increase some of their defensive capabilities after the Ukrainian
[14:09] Speaker 5: Russia conflict. So there's big structural supports there for the market. Obviously,
[14:13] Speaker 5: evaluations had moved up a long way, and I think
[14:15] Speaker 5: when we look at the North Asian markets, whether it's
[14:18] Speaker 5: Taiwan or Japan or Korea, they're going to be going
[14:22] Speaker 5: back to thinking about their role in that AI supply
[14:24] Speaker 5: chain and how that really hasn't changed given what we've
[14:27] Speaker 5: seen in the last couple of days, and so that
[14:29] Speaker 5: can provide a little bit of a cushion, or should
[14:32] Speaker 5: the outlooks start to improve, you may see investors that
[14:35] Speaker 5: want to move back into those markets that slightly better valuations.
[14:38] Speaker 5: That's still a bit early on that question, but I
[14:40] Speaker 5: think that there's a longer term case for these markets
[14:43] Speaker 5: given their key role in that AI secular theme.
[14:47] Speaker 1: That's kind of what I wanted to get to because
[14:49] Speaker 1: I think even just a month ago you were talking
[14:51] Speaker 1: about the rotation into Europe, into Japan, into emerging markets.
[14:54] Speaker 1: All of these markets have been really palmmeled. Particularly over
[14:57] Speaker 1: the past few sessions. We've talked about the sell off
[14:59] Speaker 1: when it comes to the AI scare trade. You are
[15:01] Speaker 1: starting to see the emergence of value in some of
[15:04] Speaker 1: these markets and companies.
[15:08] Speaker 5: Yeah, there had been a shift in terms of overweights
[15:11] Speaker 5: towards that growth theme that had come through movement back
[15:13] Speaker 5: and towards value that had been going through in Europe
[15:16] Speaker 5: for be the part of twelve months, and it started
[15:18] Speaker 5: to appear in the US, and it's late last year.
[15:21] Speaker 5: I think the question of whether these prices could fall
[15:23] Speaker 5: but further in that de rating could go further in
[15:26] Speaker 5: markets like US and career is a little bit too
[15:28] Speaker 5: early to tell. I mean, the timing around these things
[15:31] Speaker 5: is the biggest issue. I think In the long run, though,
[15:33] Speaker 5: you'll still see a lot of investor interest in those markets,
[15:36] Speaker 5: given that they are the big producers of memory chips.
[15:39] Speaker 5: Then the demand is always going to be there as
[15:40] Speaker 5: we see that build out in AI capabilities in the
[15:43] Speaker 5: US and around the world, So there will be a
[15:45] Speaker 5: point where these markets look a little more attractive and
[15:47] Speaker 5: you'll find the stabilization. Trying to time that is something
[15:51] Speaker 5: that we wouldn't want to get into at the moment,
[15:52] Speaker 5: given the uncertainty and the size of the tail risks
[15:55] Speaker 5: that are out there at the moment. But I certainly
[15:57] Speaker 5: think that there's going to be opportunities that come to
[15:59] Speaker 5: the for in the years ahead. I think right now
[16:02] Speaker 5: investors really need to focus on the appropriate levels of
[16:05] Speaker 5: diversification and hedges, and a portfolio where we do have
[16:09] Speaker 5: what could be quite sizable risks around growth at the
[16:12] Speaker 5: moment the focuses inflation and depending on how things develop
[16:15] Speaker 5: in the Middle East.
[16:17] Speaker 1: It's interesting we've had a pretty stellar earning season here
[16:20] Speaker 1: in Australia. Australia's always an interesting one when it comes
[16:23] Speaker 1: to a device ccation or a place of safety. When
[16:28] Speaker 1: there's global and certainty going on. Are there opportunities in
[16:31] Speaker 1: the Aussie market.
[16:34] Speaker 5: Well, certainly look like on Monday that the market hill
[16:36] Speaker 5: hadn't been as affected. I think you're seeing a bit
[16:38] Speaker 5: more of a sell off come through this morning and yesterday.
[16:41] Speaker 5: The currency also taking a bit of a hit. Given
[16:44] Speaker 5: as a beta currency and suclical to the rest of
[16:46] Speaker 5: the world. I think those same continuations around some of
[16:49] Speaker 5: the repositioning and portfolios and balance will come through. I
[16:53] Speaker 5: think a healthy rotation we had seen in the Australian
[16:55] Speaker 5: market last year was towards thinking around more of the
[16:58] Speaker 5: resources side and a little bit less on the financial side. Again,
[17:01] Speaker 5: if it's a case of thinking about a bit of
[17:03] Speaker 5: inflation shock that may come through rather than a deep
[17:06] Speaker 5: seated growth shock, you should see those continued rotation towards
[17:09] Speaker 5: the resource of materials. Names do a little bit in
[17:12] Speaker 5: that environment, and again I think as investors look for
[17:15] Speaker 5: ways to provide a bit more diversification and resilience and portfolios,
[17:20] Speaker 5: income is obviously a key part of that, and the
[17:22] Speaker 5: Australian market is a relatively high income generator, can offer
[17:25] Speaker 5: a little bit of a buffer in that regard.
[17:27] Speaker 2: That was Kerry Craig, global market strategist at JP Morgan
[17:30] Speaker 2: Asset Management, speaking with Bloomberg TV host Avril Hong and
[17:34] Speaker 2: Heidi Stroud Watts bringing you their conversation here on the
[17:37] Speaker 2: Daybreak Asia Podcast. Thanks for listening to today's episode of
[17:42] Speaker 2: the Bloomberg Daybreak Asia Edition podcast. Each weekday, we look
[17:46] Speaker 2: at the story shaping markets, finance, and geopolitics in the
[17:50] Speaker 2: Asia Pacific. You can find us on Apple, Spotify, the
[17:53] Speaker 2: Bloomberg Podcast YouTube channel, or anywhere else you listen. Join
[17:57] Speaker 2: us again tomorrow for insight on the market moves from
[18:00] Speaker 2: Hong Kong to Singapore and Australia. I'm Doug Prisoner and
[18:05] Speaker 2: this is Bloomberg

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