# Mideast Risk Hits Stocks, BHP Profit Jumps

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 18 Aug 2026, 19 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/f57102b0-1d62-4d73-b945-b4aa002c5728/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Asian bonds followed Treasuries lower as concerns over government finances mounted, while higher oil prices added to fears that inflation will quicken. Treasury 30-year yields rose to 5.32%, a level last seen in June 2007. Oil prices advanced as prospects for peace in the Middle East dimmed, reviving concern that prolonged geopolitical tensions will threaten supplies and keep energy costs elevated. Global benchmark Brent rose 0.3% to $91.10 a barrel after President Donald Trump said he wasn't interested in extending the expiring agreement with Iran and fighting flared anew in Lebanon. Bloomberg's Executive Editor for Asia Markets Paul Dobson breaks down the markets. Plus - in earnings news, BHP Group's full-year profit rose by almost a third, thanks to improved copper and iron ore prices that helped the world's largest miner beat forecasts, just as new boss Brandon Craig takes the helm. Craig, who started as chief executive officer in July, is focused on delivering a major pipeline of growth including expansions in South American and Australian copper — as well as its push into potash, a mineral used in fertilizer. BHP says it is targeting 3% to 4% copper equivalent growth per year up to 2035 — roughly double consensus expectations. Julia Lee, Investment Director at Shaw and Partners Asset Management spoke to Bloomberg TV host Paul Allen. 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 Prisner. We
[0:14] Speaker 2: saw a spike and crude oil prices during New York
[0:17] Speaker 2: trading on signs the US and Iran appear to be
[0:19] Speaker 2: far apart on any deal to end their war, and
[0:22] Speaker 2: those higher oil prices, in turn rekindled concern over stubborn inflation.
[0:27] Speaker 2: We know that inflation has been stuck well above the
[0:29] Speaker 2: Fed's target for the past five years. It's fair to
[0:33] Speaker 2: ask whether the FED will be raising interest rates before
[0:35] Speaker 2: the end of the year to get those prices under control. Today,
[0:39] Speaker 2: in the treasury market, if you look at the yield
[0:41] Speaker 2: on the thirty year, it rose to five point three
[0:44] Speaker 2: one percent. That's the highest in nearly two decades. So
[0:48] Speaker 2: not surprisingly, the equity market retreated a bit. The S
[0:50] Speaker 2: and P was down a half of one percent. We
[0:52] Speaker 2: did have a rally though, among some of the chip makers,
[0:55] Speaker 2: and the Philadelphia Semiconductor Index rising today by about one
[0:59] Speaker 2: point six percent. For a closer look at what's happening
[1:01] Speaker 2: in Asia, let's bring in Bloomberg's Paul Dobson. He is
[1:04] Speaker 2: executive editor of Asia Markets, and he joins from our
[1:08] Speaker 2: studios in Singapore. Thank you for being here. I want
[1:10] Speaker 2: to pick up on the chip strength that we had
[1:13] Speaker 2: in the States. It seems to be filtering through to
[1:16] Speaker 2: South Korea, does it not.
[1:18] Speaker 3: Yeah, Hi there, Doug. So it was a holiday yesterday
[1:22] Speaker 3: as well for South Korea, so a little bit of
[1:24] Speaker 3: a catch up trade going on. But people seem relatively
[1:28] Speaker 3: excited by the ongoing deal announcements that we see from
[1:32] Speaker 3: the Lakes of Aanthropy from the video. More investment, more
[1:35] Speaker 3: confidence in the data center build out, and therefore more
[1:39] Speaker 3: demand for the memory chips. So that's enough to keep
[1:43] Speaker 3: career in the Asian tech sector looking pretty chipper. If
[1:46] Speaker 3: you he's the bad pun, okay, you're allowed.
[1:50] Speaker 2: Talk to me a little bit about what's happening with
[1:52] Speaker 2: artificial intelligence as it relates to China. We've had some
[1:55] Speaker 2: pretty dramatic developments over the last few days we.
[2:00] Speaker 3: Have, and so the China tech stack is really starting
[2:03] Speaker 3: to show its strength. We had the IPO of CXMT
[2:08] Speaker 3: not too long ago. That company has immediately surged to
[2:11] Speaker 3: become the most valuable company in China. And I think
[2:15] Speaker 3: what's really telling here is that those sort of new
[2:18] Speaker 3: new technology stocks are really surpassing the older darlings, the
[2:24] Speaker 3: platform companies of yesteryear as it were. We saw JD
[2:27] Speaker 3: dot Com reporting earnings not looking good, had a ten
[2:31] Speaker 3: percent down day. Similar story for ten Cent when it
[2:34] Speaker 3: reported Eddie Barber also not faring terribly well. And so
[2:38] Speaker 3: you know, all of the companies that used to be
[2:40] Speaker 3: kind of the go to names for China investment and
[2:45] Speaker 3: now sort of falling by the wayside As, we have
[2:47] Speaker 3: this new emphasis on AI, on chip makers and also
[2:52] Speaker 3: on robotics, so we have more IPOs coming down the
[2:56] Speaker 3: line in that space, and that's the next sort of
[2:58] Speaker 3: big and exciting thing for investments in China.
[3:02] Speaker 2: Paul, I'm glad you mentioned that, because if you look
[3:05] Speaker 2: at the monthly Chinese activity data for July, the points
[3:09] Speaker 2: you just made are supported by the numbers. The growth
[3:11] Speaker 2: story seems to be more about the global buildout of AI, right.
[3:16] Speaker 3: Yeah, it's really a case shaped economy of the moment
[3:20] Speaker 3: where you have that chip sector, you have the experts
[3:23] Speaker 3: are really thriving, but you have a lot of the
[3:25] Speaker 3: rest of the economy looking pretty depressed. We had misses
[3:28] Speaker 3: pretty much across the board on the data that we
[3:31] Speaker 3: got yesterday, including retail sales, and that speaks to this
[3:34] Speaker 3: idea that the consumer really isn't thriving in mainland China.
[3:38] Speaker 3: At the moment, the economy is bobbling along towards the
[3:43] Speaker 3: weekend of where the government's forecast or ambitions for the
[3:50] Speaker 3: year are, and it sort of likes to run it
[3:52] Speaker 3: that way in some ways. So if it feels that
[3:55] Speaker 3: it's falling too far behind, it may do more stimulus
[3:57] Speaker 3: to write the course towards the end of the year.
[3:59] Speaker 3: That's the moment thinking that if it can hold up,
[4:02] Speaker 3: you know, a sort of just below that five percent
[4:05] Speaker 3: run rate, then maybe is reasonably happy. But what we
[4:08] Speaker 3: are seeing in terms of the market is the way
[4:10] Speaker 3: that investors are expressing this as a couple of things. Yes,
[4:13] Speaker 3: there's optimism in the tech space, inequities and some differentiation trades,
[4:17] Speaker 3: but also in the government bond market in China our
[4:20] Speaker 3: countrary to the rest of the world. Basically, we've got
[4:23] Speaker 3: falling yield. So we've got the ten year gield the
[4:26] Speaker 3: lowest in a couple of years, they think, and falling
[4:29] Speaker 3: while everything yields all around the rest of the world arising.
[4:33] Speaker 2: Talk to me a little bit about what's going on
[4:34] Speaker 2: in Japan because we had the second quarter GDP figure
[4:37] Speaker 2: that was released on Monday surprising weakness. I think it's
[4:42] Speaker 2: fair to say, at a growth rate of just one
[4:44] Speaker 2: point one percent, and I'm wondering about how this may
[4:47] Speaker 2: influence the thinking of the Bank of Japan.
[4:50] Speaker 3: Yeah, as true, and that sort of sets out a
[4:53] Speaker 3: little bit the dilemma that's in front for the Bank
[4:55] Speaker 3: of Japan because really the pressure is on them to
[4:58] Speaker 3: start raising rates a little bit more aggressively at a
[5:01] Speaker 3: faster place as well, so maybe bringing forwards the hike
[5:04] Speaker 3: to September and then maybe signaling as well at some
[5:08] Speaker 3: sort of a hawkish position. And the reason for that
[5:10] Speaker 3: is that inflation is still high in the Japanese economy
[5:13] Speaker 3: and people are worried that the Bank of Japan is
[5:16] Speaker 3: letting the inflation run out a little bit out of control.
[5:19] Speaker 3: So that's pushing up yields at the back end of
[5:21] Speaker 3: the curve. The thirty year yield in particular continues to
[5:25] Speaker 3: set new highs, the highest level since the nineteen nineties.
[5:29] Speaker 3: And that's a little bit of a worry. And you know,
[5:31] Speaker 3: that was part of the reason or that we sort
[5:34] Speaker 3: of saw the US joining Japan and intervening in the
[5:37] Speaker 3: currency space. You know, the idea that the people are
[5:42] Speaker 3: worried generally about the currency and about the bond yields
[5:45] Speaker 3: running out of control. But what I think the US
[5:48] Speaker 3: would like to see would be a more proactive stance
[5:50] Speaker 3: from the Bank of Japan. The problem for them is
[5:53] Speaker 3: with the economy looking a little bit weak, they don't
[5:55] Speaker 3: want to hike so aggressively that they end up tipping
[5:57] Speaker 3: the economy into a recession and blow up all of
[6:00] Speaker 3: the inflationary impulse there.
[6:02] Speaker 2: So how much of that sluggish growth in Japan is
[6:05] Speaker 2: tied to what we are seeing play out in the
[6:07] Speaker 2: Middle East and elevated oil prices? Is that really capturing
[6:11] Speaker 2: the lion's share of the blame.
[6:14] Speaker 3: Is definitely a big element because Japan, being an importer,
[6:18] Speaker 3: is very reliant on that. I mean, you know, I
[6:22] Speaker 3: think over that reporting period for all that it was
[6:24] Speaker 3: a period when perhaps there was a little bit less
[6:27] Speaker 3: pressure in the oil market. So it's not unique uniquely
[6:31] Speaker 3: the cause of the stresses in the economy. I think
[6:35] Speaker 3: people in general are struggling to adapt to inflation. Some
[6:40] Speaker 3: parts of the economy. The younger, vibrant sort of population
[6:43] Speaker 3: that's seeing wage increases is doing very well. But older
[6:46] Speaker 3: people's savers who've been used to, you know, kind of
[6:48] Speaker 3: no increases in costs suddenly having to change the way
[6:51] Speaker 3: they think. And part of what they're doing therefore is
[6:55] Speaker 3: spending less. And so the government is addressing that to
[6:59] Speaker 3: a certain extent by reducing some of the v eight
[7:05] Speaker 3: like the you know, the taxes on sales for a
[7:09] Speaker 3: couple of years to try to ease that burden on
[7:11] Speaker 3: the consumer. But it's the whole adjustment process really getting
[7:15] Speaker 3: used to the idea that things are getting more expensive
[7:18] Speaker 3: because of inflation, and so therefore, you know, if you're
[7:21] Speaker 3: an elderly person or something like that, you need to
[7:23] Speaker 3: be putting your cash to work somehow as well, not
[7:26] Speaker 3: just sitting on it and expecting that it will still
[7:29] Speaker 3: be able to buy the same amount of stuff in
[7:31] Speaker 3: five years that it can today.
[7:33] Speaker 2: I mentioned a moment ago that in the US session
[7:35] Speaker 2: we had that spike in US treasury yields. The thirty
[7:38] Speaker 2: year jumped to a rate of five point three one
[7:41] Speaker 2: percent that was the highest in nearly two decades. Now
[7:45] Speaker 2: we know that there are many inputs when it comes
[7:47] Speaker 2: to the pricing of bonds, and I'm wondering if you
[7:50] Speaker 2: had to put your finger on what the big driver
[7:53] Speaker 2: is of the price section that we have been seeing,
[7:55] Speaker 2: what would.
[7:56] Speaker 3: That be excellent question? And the cop out answer is
[7:59] Speaker 3: there's so there's no single driver. But I do think
[8:01] Speaker 3: that this is really an important narrative to focus on
[8:05] Speaker 3: right now because there's slight risk at the back end
[8:08] Speaker 3: of the yield curve gets out of control, and I
[8:10] Speaker 3: think the key focuses are worries about inflation and worries
[8:14] Speaker 3: that central banks aren't being proactive enough to address that.
[8:17] Speaker 3: So the idea that the FED isn't going to be
[8:20] Speaker 3: hiking anytime soon is a worry for those investors who
[8:23] Speaker 3: have long duration exposure because of the impact that inflation
[8:28] Speaker 3: has on that. I think people are worried about government
[8:30] Speaker 3: spending plans all around the world as well, and the
[8:33] Speaker 3: amount of supply that's coming to the market, which in
[8:36] Speaker 3: addition to that, we also have the amount of fundraising
[8:41] Speaker 3: that's being done for that AI build out and in
[8:44] Speaker 3: the AI space as well, and that's another concern for people.
[8:48] Speaker 3: But I think the other thing, you know, like the
[8:50] Speaker 3: long term dynamic is and when you look at the
[8:52] Speaker 3: way that markets are at the moment and the way
[8:54] Speaker 3: they've been performing. We talked about the chip boom, we
[8:56] Speaker 3: talked about equities. Equities just look much more appealing to
[9:00] Speaker 3: all sorts of investors than bonds do at the moment.
[9:02] Speaker 3: Bonds are losing money at the moment this year. You've
[9:05] Speaker 3: got to get them to a point where that long
[9:07] Speaker 3: term yield becomes irrefutably or irresistible to investors in order
[9:13] Speaker 3: to bring money back in that direction. The only other
[9:15] Speaker 3: thing that would change the course would be a big
[9:18] Speaker 3: economic slowdown. Now, one thing that could cause the economic
[9:20] Speaker 3: slow down could be high enough bond yield, So that's
[9:23] Speaker 3: something to watch out for. But people will need to
[9:26] Speaker 3: see them higher before they really start to have concerns
[9:29] Speaker 3: about funding in the economy and therefore about their equity market.
[9:33] Speaker 2: So before I let you go, I'm going to see
[9:35] Speaker 2: if we can tie some things together. Because we touched
[9:37] Speaker 2: on the weakness in the Japanese yen a moment ago,
[9:41] Speaker 2: and there was that coordinated intervention that took place between
[9:44] Speaker 2: Japan and the US, and I think from the US perspective,
[9:46] Speaker 2: one of the things that Scott Bess at the US
[9:49] Speaker 2: Treasury Secretary may have been a little concerned about if
[9:53] Speaker 2: Japanese officials had to raise funds in order to defend
[9:56] Speaker 2: their currency, they may have been put in a position
[9:59] Speaker 2: to reduce their holdings of US treasuries. That would have
[10:02] Speaker 2: been a negative for the treasury market and had upward
[10:06] Speaker 2: pressure on yields. Do you think that's a factor at all,
[10:09] Speaker 2: that somewhere in the background there is concern that Japan
[10:13] Speaker 2: may have to lighten its inventory of US treasuries or
[10:16] Speaker 2: do you think the relationship between Washington and Tokyo will
[10:20] Speaker 2: prevent that from occurring.
[10:23] Speaker 1: No.
[10:23] Speaker 3: I do think that that's a concern, and I think
[10:25] Speaker 3: that there's two reasons to worry about that. First of all,
[10:28] Speaker 3: as you identified that sort of direct link where Japan,
[10:31] Speaker 3: if it needs to continue to raise dollars, it will
[10:34] Speaker 3: need to sell some of it overseas assets. I think
[10:37] Speaker 3: in the latest TICK data, we saw overseas investors curb
[10:41] Speaker 3: their holdings of US treasuries even after valuation effects. With
[10:44] Speaker 3: Japan that's showing the biggest drop. So that's one thing
[10:47] Speaker 3: that people are worried about. But I think the other
[10:49] Speaker 3: thing that people starting to whisper or murmur about is
[10:53] Speaker 3: the idea that if the US really doesn't want you
[10:56] Speaker 3: to sell US treasuries then, and you're holding them as
[11:00] Speaker 3: that sort of reserve asset, that sort of store of
[11:03] Speaker 3: value that you can tap when you need it. If
[11:05] Speaker 3: it's not actually going to be able to serve that purpose,
[11:08] Speaker 3: then is it that much of a useful reserve asset
[11:11] Speaker 3: for people to be holding after all?
[11:13] Speaker 1: You know?
[11:13] Speaker 3: And so I think that the recovery that we've seen
[11:15] Speaker 3: in gold recently speaks a little bit of that idea
[11:18] Speaker 3: as well, and so that I think puts a little
[11:21] Speaker 3: bit more of a question marker overthinks it's another concern
[11:25] Speaker 3: for our long term debt managers.
[11:27] Speaker 2: Paul will leave it there, Thank you so very much.
[11:29] Speaker 2: Bloomberg's Paul Dobson, Executive editor for Asia Markets, joining from
[11:33] Speaker 2: Singapore here on the Daybreak Asia podcast. Welcome back to
[11:44] Speaker 2: the Daybreak Asia Podcast. I'm Doug Christner. We moved to
[11:47] Speaker 2: some earnings news next from the Australian mining giant BHP Group.
[11:51] Speaker 2: The company reported full year underlying profit above expectations. These
[11:56] Speaker 2: results were fueled in part by higher copper prices, and
[12:00] Speaker 2: we got reaction from Julia Lee. Julia is investment director
[12:04] Speaker 2: at Shaw and partner's asset management. She spoke with Bloomberg
[12:07] Speaker 2: TV host Paul Allen.
[12:09] Speaker 4: Copper a great story for them today, but is it
[12:11] Speaker 4: as great as it could have been?
[12:13] Speaker 5: I think first of all, we have to applaud the
[12:15] Speaker 5: results today. It's on the back of a very strong
[12:17] Speaker 5: operational performance together with rising prices and that dividend. You know,
[12:22] Speaker 5: the market was expecting to see eighty three usns coming
[12:25] Speaker 5: in that ninety nine us sense I still remember, you know,
[12:28] Speaker 5: when BHP was a growth stock, reinvesting a lot of
[12:31] Speaker 5: its profits into its business, and as the business has matured,
[12:34] Speaker 5: you've really seen that very strong cash generation coming through.
[12:38] Speaker 5: So as an income investor in the Australian market, you know,
[12:41] Speaker 5: it's very hard to dismiss those type of returns coming through.
[12:45] Speaker 5: But you're absolutely right on the growth picture. When you're
[12:47] Speaker 5: looking sort of five to seven years out, well, where's
[12:50] Speaker 5: the growth going to come from? We know with iron
[12:53] Speaker 5: ore that we've seen a declining picture there. Copper is fantastic,
[12:56] Speaker 5: but M and A is very difficult, So how do
[12:58] Speaker 5: you grow the copper business from here? And podcash is
[13:02] Speaker 5: very long dated, so you're looking a lot further out.
[13:05] Speaker 1: So I guess A big question for BHP is.
[13:07] Speaker 5: You know, it's running at full steam at the moment,
[13:10] Speaker 5: it's generating these great results, but the next leg of
[13:14] Speaker 5: investment and the next leg of growth.
[13:16] Speaker 4: It takes a long time to bring a copper mind online.
[13:18] Speaker 4: So M and A the only option. What are you
[13:21] Speaker 4: expecting to see in that space in the coming from months.
[13:24] Speaker 5: I mean, compon is a stranger, and we have seen
[13:26] Speaker 5: copper prices at these very high levels and a lot
[13:29] Speaker 5: of that is trying to get in before some of
[13:31] Speaker 5: the tariff potential tariff actions. But copper can also be
[13:35] Speaker 5: substituted for aluminum. So do we start to see a
[13:38] Speaker 5: substitution effect coming through and are you bringing sort of
[13:42] Speaker 5: future demand into the present and then do you see
[13:45] Speaker 5: pull back a little bit later on.
[13:47] Speaker 1: So, yes, copper is great because of.
[13:49] Speaker 5: The AI the growing of the data center story as well,
[13:53] Speaker 5: But in terms of just copper, I think it's going
[13:56] Speaker 5: to be a bit harder for BHP to gain more exposure.
[14:00] Speaker 5: But for both BHP and RIO tinto very strong copper,
[14:03] Speaker 5: making more than half of their earnings now from copper.
[14:06] Speaker 4: When you look at the copper space, is there any
[14:08] Speaker 4: miner that you favor in particular, and I mean we
[14:10] Speaker 4: mentioned vhprio tinto, but four to Skew Metals finally as
[14:13] Speaker 4: diversified into copper with an acquisition of its own, very
[14:17] Speaker 4: good timing. But which of those miners and the gunior
[14:19] Speaker 4: miners do you think the best place to take advantage
[14:21] Speaker 4: of the sperm.
[14:22] Speaker 5: Yeah, I think when we look at our portfolios, we're
[14:24] Speaker 5: most highly exposed to BHP bulletin in that space, we've
[14:27] Speaker 5: got very little for to Skew exposure.
[14:29] Speaker 1: But of course, you know, the.
[14:31] Speaker 5: Copper story is fantastic for now, but still looking for
[14:34] Speaker 5: that extra leg of growth. And one of the areas
[14:37] Speaker 5: that we have like is the lithium space where we
[14:39] Speaker 5: have been adding our stuffs like Pilber minerals where you know,
[14:43] Speaker 5: lithium was another area where we saw very strong demand
[14:47] Speaker 5: coming through a very strong supplier response and then prices
[14:51] Speaker 5: are collapsing. But just over the last few months we've
[14:53] Speaker 5: really seen prices coming back and we still think that
[14:56] Speaker 5: story has a bit to run. So diversifying into other
[14:59] Speaker 5: areas because we know coppers had a very strong run
[15:02] Speaker 5: and looking at things like lithium and uranium as well.
[15:05] Speaker 4: We do need to talk about CSL as well, because
[15:07] Speaker 4: today's price pump has been quite spectacular. I think we're
[15:11] Speaker 4: above seventeen percent now. Revenue was a narrow beat. It
[15:15] Speaker 4: made a huge loss two and a half billion dollars.
[15:17] Speaker 4: But looking forward for CSL, what do you see in
[15:20] Speaker 4: that stock's future? Would you be a.
[15:21] Speaker 2: Buyer of it?
[15:22] Speaker 1: I mean, we have been adding CSL.
[15:25] Speaker 5: The big question for investors is not so what has happened,
[15:28] Speaker 5: but is most of the bad news behind us? Have
[15:31] Speaker 5: we seen a peak in terms of the bad news
[15:33] Speaker 5: coming through? And I think these results show that, yes,
[15:36] Speaker 5: there is some still, you know on the headline numbers
[15:39] Speaker 5: because of the right downs, we are seeing some bad news,
[15:42] Speaker 5: but in some of the key underlying areas we've seen stabilization.
[15:46] Speaker 5: I think the reason for the pop in the share
[15:49] Speaker 5: price today though.
[15:50] Speaker 1: Is its outlook.
[15:51] Speaker 5: The market had been forecasting no growth, and it looks
[15:54] Speaker 5: like the market believes what the company is saying, which
[15:56] Speaker 5: is forecasting five percent growth now. So great to see
[16:00] Speaker 5: CSL having a strong run. We're overweighting the portfolio given
[16:04] Speaker 5: the depressed valuations that it's been at, and it's been
[16:06] Speaker 5: a pretty bumpy ride for healthcare stocks.
[16:10] Speaker 1: I mean, we've seen CSL as well as co Clear
[16:12] Speaker 1: up about.
[16:13] Speaker 5: Thirty percent over the last three months, but still down
[16:16] Speaker 5: in the year to date, So that tells a big
[16:17] Speaker 5: story on the volatility in the sector.
[16:20] Speaker 4: Is there a story here as well about rotation out
[16:23] Speaker 4: of AI, which Australia doesn't have a great deal of
[16:25] Speaker 4: exposure to, into Australian healthcare stocks.
[16:29] Speaker 5: We certainly have seen healthcare in focus, and I think
[16:33] Speaker 5: the story with Australia has been very much that it
[16:36] Speaker 5: is less expensive than the rest of the world. There
[16:39] Speaker 5: is a value component to it and you can see
[16:42] Speaker 5: that in the M and A activity that's.
[16:43] Speaker 1: Happening at the moment.
[16:44] Speaker 5: We're seeing a lot of offshore companies hunting for companies
[16:47] Speaker 5: here in Australia because of our lower valuations. We've seen
[16:50] Speaker 5: clean away Insignia, I mean today we also saw equity
[16:54] Speaker 5: trustees coming through, so a number of takeovers and M
[16:57] Speaker 5: and A and I think that's because of the value component,
[17:00] Speaker 5: and healthcare has benefited from that rotation into some of
[17:03] Speaker 5: those value areas. But if you want tech, I guess
[17:06] Speaker 5: you're going to have to look at either the fixed
[17:08] Speaker 5: income area. Talk of that Kangaroo bond coming through from
[17:11] Speaker 5: Google with exposure to the AI through the credit area.
[17:15] Speaker 5: Otherwise it's off shore markets that have that greater exposure.
[17:19] Speaker 5: The Australian share market only has a two percent technology sector.
[17:22] Speaker 5: That's compared to South Korea, where Samsung and sk Heinis
[17:26] Speaker 5: make up fifty percent of their market.
[17:28] Speaker 4: Go if you want to heade, I guess this is
[17:30] Speaker 4: the place to come before we let you go. Look,
[17:33] Speaker 4: we're at a chunk through Australian earning season so far.
[17:36] Speaker 4: What's your report card so far and what are you
[17:38] Speaker 4: looking out for in the next couple of weeks.
[17:39] Speaker 5: We went into earning season with very high expectations. Twelve
[17:43] Speaker 5: percent growth was expected and that's the highest growth rate
[17:46] Speaker 5: that we've seen in around about four years.
[17:48] Speaker 1: Typically we expect earnings.
[17:49] Speaker 5: To be about four to four and a half percent growth,
[17:52] Speaker 5: and I think that's been reflected in the Australian share
[17:54] Speaker 5: market where we did see record highs being reached earlier.
[17:58] Speaker 1: On in the month.
[17:59] Speaker 5: But as earning this season has continued, we've seen a
[18:01] Speaker 5: bit of from loss of earning's momentum growth now expected
[18:04] Speaker 5: at eleven point seven percent, and that's not devastatingly low, it's.
[18:08] Speaker 1: Still very high.
[18:09] Speaker 5: But the fact is We are starting to see a
[18:11] Speaker 5: bit of moderation in terms of earning's momentum, and that's
[18:14] Speaker 5: across eleven sectors.
[18:15] Speaker 1: It's being worse in some like consumer discretionary. We know
[18:18] Speaker 1: that's been hit hot, but.
[18:20] Speaker 5: Other sectors have started to shine, into healthcare, energy in
[18:23] Speaker 5: the material space.
[18:24] Speaker 2: That was Julia Lee, investment director at Shaw and Partner's
[18:28] Speaker 2: Asset Management, speaking with Bloomberg TV host Paul Allen, bringing
[18:32] Speaker 2: you their conversation here on the Daybreak Asia Podcast. Thanks
[18:38] Speaker 2: for listening to today's episode of the Bloomberg Daybreak Asia
[18:42] Speaker 2: Edition podcast. Each weekday, we look at the story shaping markets, finance,
[18:47] Speaker 2: and geopolitics in the Asia Pacific. You can find us
[18:50] Speaker 2: on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere
[18:54] Speaker 2: else you listen. Join us again tomorrow for insight on
[18:57] Speaker 2: the market moves from Hong Kong to a poor and Australia.
[19:02] Speaker 2: I'm Doug Prisoner and this is Bloomberg
[19:11] Speaker 5: M

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