Trump's Escalating Trade War | Bloomberg: The China Show 2/11/2025

♪ >> WE HAVE ANOTHER FROM THE OPEN IN HONG KONG, SHENZHEN AND SHANGHAI. YOU'RE WATCHING "THE CHINA SHOW," I'M REBECCA CHOONG WILKINS WITH ANNABELLE DROULERS. ANNABELLE: PRESIDENT TRUMP WARNING THAT CARS, CHIPS COULD BE NEXT. REBECCA: THERE IS A SIGN OF RISK APPETITE OF THE REST OF US AS THE TRADE WAR IMPACT. STOCKS ARE TREADING WATER WHILE THE DOLLAR AND GOLD STRENGTHEN. ANNABELLE: CHINA VANKE A GETTING A HELPING HAND WITH A MOUNTAIN OF DEBT WITH SUPPORT FROM ITS BIGGEST STATE SHAREHOLDER. ♪ , ALRIGHT? A LOOK AT THE MARKET REACTION THIS MORNING TO WHAT HAS REALLY BEEN

A VERY HEAVY MORNING OF NEWS FLOW. IN THE LAST COUPLE OF HOURS, DONALD TRUMP SENDING A SERIES OF EXECUTIVE ORDERS PUTTING A 25 TARIFF ON STEEL AND ALUMINUM IMPORTS. THE GOAL IS TO BRING MORE PRODUCTION ON SHORE. STEPHEN ENGLE WILL JOIN US IN A COUPLE OF MINUTES. THE DETAILS ARE IN THE MARKET REACTION. WE HAVE SEEN SOME CONTRACTS MOVING HIGHER, BUT BUT THE MOST PRONOUNCED MOVE THIS MORNING IS IN BOLD. HITTING A FRESH RECORD HIGH. ALREADY AT MORE THAN 10% YEAR-TO-DATE. INVESTORS REALLY VERY UNCERTAIN ABOUT HOW THIS WILL EXACTLY PAN OUT. LET'S LOOK AT THE

MOVES IN THE BOND SPACE THIS MORNING BECAUSE, AGAIN, WE ARE SEEING THESE INFLATION EXPECTATIONS STARTING TO BUILD AMONG INVESTORS. THIS CHART HERE IS LOOKING AT THE 30 YEAR BREAKEVEN BELOW THE 5-YEAR YIELD GAUGE. BREAKEVENS, LOOKING AT THE DIFFERENCE BETWEEN TREASURIES AND INFLATION-PROTECTED SECURITIES. USUALLY YOU WOULD SEE THE 30 YEAR BREAKEVEN TRADING HIGHER. NOT THE CASE RIGHT NOW. THERE IS AN IN IN PLACE AND IT TELLS YOU INVESTORS ARE UNCERTAIN ABOUT WHAT HAPPENS IN THE NEAR TERM. LET'S LOOK AT WHAT IS HAPPENING THIS MORNING IN ASIAN EQUITIES AND HOW IT IS TRANSMITTED ACROSS. ESSENTIALLY WE CONTINUE

TO SEE STOCKS MOVING HIGHER. PERHAPS SHRUGGING THIS OFF TO AN EXTENT. JAPAN IS SHUT. U.S. FUTURES A BIT UNDER PRESSURE. THESE VOLATILITY GAUGES LOOKING A BIT INFLATED -- ELEVATED. LET'S LOOK AT CHINA FUTURES AHEAD OF THE OPEN. WHAT WE'RE SEEING IS THE VOLATILITY GAUGE FOR THE HANG SENG, YOU SEE A BIT OF SPIKES COMING THROUGH. IN PERCENTAGE TERMS, ABOUT A 5% JUMP. WE CONTINUE TO SEE THE SOUTHBOUND RALLY, NOT A GOOD DAY OVERNIGHT FOR THE GOLDEN DRAGON INDEX. AND ANOTHER VOTE OF SUPPORT FOR CHINESE EQUITIES COMING FROM DAVID TAPPER. REBECCA: ABSOLUTELY. AND TO YOUR POINT

ABOUT WHAT WE ARE WATCHING HERE IN HONG KONG, OF COURSE WE HAVE THE SPIKE IN VOLATILITY BUT IT IS TECH REALLY HELPING DERIVED SOME OF THAT RALLY WE ARE SEEING FOR THE HSTECH. LOOKING AT THIS 5, 38,7 LEVEL. THAT WOULD TAKE US BACK TO THE HIGH IN OCTOBER SINCE 20 -- WE ENDED BUILD TERRITORY FOR THAT INDEX LAST WEEK. ALSO KEEPING AN EYE ON STOCK TURNOVER. WE DIDN'T MANAGE TO TOP THAT 2 TRILLION DOLLARS LEVEL WE WERE WATCHING YESTERDAY. BUT TO BELLE'S POINT, CHINESE INVESTORS ARE POURING INTO THIS BULL WRONG IN HONG KONG SHARES. THEY

HAVE ADDED ABOUT 9 BILLION SO FAR THIS YEAR. ELSEWHERE ARE KEEPING AN EYE ON ENDINGS. THE SELF-SUFFICIENCY IN THE CHINA STORY IS WHAT WE ARE EXPECTING. A PREVIEW, EXPECTING TO SEE THE PAST QUARTER GROWING 32% OR SO. WE HAVE A FLURRY OF DATA, AND, AS WELL WE ARE NOW ENTERING THE WINDOW FOR CREDIT DATA SO LOOK OUT FOR NEW LOANS AND AGGREGATE FINANCING AND ALSO FDI AND ODI, WE ARE EXPECTING TO SEE THAT. GEOPOLITICS, THE COOK ISLANDS PRIME MINISTER IS IN CHINA THROUGH THIS ENTIRE WEEK, THE FIRST VISIT FOR A LEADER OF THAT ISLAND NATION

TO CHINA. IT IS A STATE VISIT. THE CONCERN IS AROUND NATIONAL SECURITY. WE HAD NEW ZEALAND SAYING THEY WERE CAUGHT OFF THE BACK FOOT. WE HAVE ALSO HAD REPORTS ON THE NEW ZEALAND SIDE THAT WE ARE MAY BE SEEING A MAJOR DEAL BETWEEN THE COOK ISLANDS AND THE CHINESE GOVERNMENT. OF COURSE THAT WHOLE ISSUE AROUND THE CHINA PACIFIC ALLIANCES VERY MUCH IS IN PLAY WHEN IT COMES TO NEW ZEALAND, AUSTRALIA AND SOME OF THE U.S. ALLIES. STICKING TO GEOPOLITICS, TURNING TO OUR'S TOP STORY TODAY. ANNABELLE: WRIGHT, PRESIDENT TRUMP WILL FOLLOW THROUGH ON THE PLEDGE TO

IMPOSE A 25% TARIFF ON ALL STEEL AND ALUMINUM IMPORTS. FOR MORE, LET'S BRING IN OUR CHIEF NORTH ASIA CORRESPONDENT STEPHEN ENGLE. WE'RE STILL TRYING TO GET OVER THE DETAILS. BUT HOW SWEEPING ARE THE TARGETS GOING TO BE? STEPHEN: HE SAID THEY WERE GOING TO BE SLEEPING YESTERDAY ON AIR FORCE ONE AND HE HAS COME THROUGH WITH THAT PLEDGE. 25% TARIFFS ON ALL STEEL AND ALUMINUM IMPORTS INTO THE UNITED STATES, DOESN'T MATTER WHETHER YOU ARE AN ALLY, WHETHER YOU GOT EXEMPTED LAST TIME WHEN THEY SLAPPED A SIMILAR TARIFFS ON TRADING PARTNERS BUT GIVE EXEMPTIONS TO KEY

PARTNERS LIKE CANADA, MEXICO AND BRAZIL. ALL WERE ABLE TO GET CERTAIN EXEMPTIONS. AT THIS TIME, NO EXEMPTIONS EXCEPT AUSTRALIA -- APPARENTLY, MAY BE. [LAUGHTER] DONALD TRUMP IN THIS IMPROMPTU PRESS CONFERENCE ESSENTIALLY SAID HE HAD A VERY GOOD CONVERSATION WITH MR. ALBANESE OF AUSTRALIA AND HE WAS GOING TO CONSIDER GIVING AN EXEMPTION. HIS MAIN JUSTIFICATION IS THAT THE UNITED STATES HAS A TRADE SURPLUS WITH AUSTRIA. HE WAS ASKED, WHAT ABOUT THE U.K.? HERE, NO, THE U.K. HAS A TRADE DEFICIT WITH THE U.S.. WE STILL HAVE TIME, THERE IS THREE WEEKS TO TODAY UNTIL THESE TARIFFS TAKE

EFFECT. AND WE WILL BE DEALING WITH POTENTIALLY OTHER TARIFFS HE WILL BE SIGNING. HE HAS TALKED ABOUT CARS, IN PARTICULAR TARGETING EUROPEAN CARMAKERS. HE HAS TALKED ABOUT CHIPS. HE HAS TALKED ABOUT PHARMACEUTICALS. HE HAS TALKED ABOUT THE RECIPROCAL TARIFF SCHEME WHICH HE SAID MIGHT BE DONE IN A COUPLE OF DAYS, WHICH IS IF ANY COUNTRY SLAPS AT ON U.S. EXPRESS TO THEIR COUNTRY, HE WILL RECIPROCATE WITH THE SAME LIKE TARIFF. SO BUCKLE UP. [LAUGHTER] REBECCA: I WANT TO ASK ABOUT CHINA HERE. DOESN'T EXPORT A GREAT DEAL TO THE U.S., OF COURSE, IT'S THE WORLD'S BIGGEST

EXPORTER OF STEEL. IS THERE ANY RICOCHET OF THIS POLICY THAT WILL IMPACT CHINA IN ANY WAY? STEPHEN: CHINA IS AT THE CENTER OF A LOT OF THESE DIRECT ACTIONS. YOU'RE ABSOLUTELY RIGHT, THE LIST OF TOP EXPORTERS OF STEEL TO THE UNITED STATES, CHINA IS A BIT DOWN THE TABLE. CANADA IS NUMBER ONE, MEXICO, THEN BRAZIL. TAIWAN IS ALSO THERE. IN A MONTHLY BASIS IN JANUARY, YOU SAW CANADA, BRAZIL, MEXICO, SOUTH KOREA AND GERMANY. CHINA IS A BIT DOWN. BUT THE RIGHT HAS A SAYING THAT COUNTRIES LIKE CHINA AND ALSO RUSSIA HAS CIRCUMVENTED A LOT OF

THE DUTIES IN PLACE. KEEP IN MIND, THE BIDEN ADMINISTRATION PUT A 20 5% TARIFFS ON CHINESE DEAL AND ALUMINUM IN SEPTEMBER. IN CHINESE HAVE BEEN ACCORDING TO THE WHITE HOUSE, FINDING WAYS TO GET THEIR PRODUCTS INDIRECTLY INTO THE UNITED STATES, SELLING STEEL FOR EXAMPLE, ACCORDING TO THE WHITE HOUSE, TO VIETNAM WHICH FINISHES THE STEEL AND THEN RE-BADGES IT AS THE ENEMY STEAL INTO THE UNITED STATES. THERE'S ALSO ALLEGATIONS THAT CHINA WITH ITS SLOWING ECONOMY HAS BEEN AND EXPORTING ITS AXIS STEEL TO MEXICO AND CANADA AND THEN MEXICO AND CANADA SELL THEIR HIGHER, EXPENSIVE, LOCALLY MADE

STEEL INTO THE UNITED STATES. DONALD TRUMP WANTS TO CLOSE THESE LOOPHOLES. ANNABELLE: THAT WAS OUR CHIEF NORTH ASIA CORRESPONDENT, STEPHEN ENGLE, ON ONE OF THE BIGGEST STORIES OF THE DAY FOR US. ANOTHER BIG ONE WE ARE TRACKING THIS MORNING IS WHAT IS HAPPENING WITH OPENAI. THE CEO, SAM ALTMAN, HAS REBUFFED A $97 BILLION BID FROM A GROUP OF INVESTORS LED BY ELON MUSK TO BY THE NONPROFIT THAT CONTROLS THE CHATGPT CREATOR. LET'S GET MORE WITH BLOOMBERG INTELLIGENCE'S MANDEEP SINGH. IT'S ALMOST SO FANTASTICAL, THE HEADLINE. THIS IDEA THAT ELON MUSK WILL BE PART OF THE CONSORTIUM

TO BUY OPENAI. HOW SERIOUS IS THAT BIDS? MANDEEP: WE KNOW HE BOUGHT TWITTER A COUPLE YEARS BACK. CLEARLY, HE IS SERIOUS ABOUT THESE ACQUISITIONS. ALTHOUGH THE PRICE TAG IS GOOD TO BE INTERESTING BECAUSE EVEN THOUGH 97 BILLION WILL PROBABLY BE THE LARGEST ACQUISITION IN TACT, WHEN YOU LOOK AT OPENAI'S LATEST FUNDING ROUND, THAT IS MORE CLOSE TO $250 MILLION PLUS -- $250 MILLION PLUS. IN FACT, ONE OF THE RUMORS WERE THAT SOFTWARE COULD END UP TAKING A STICK OPENAI AND THAT WOULD PUT THE VALUATION CLOSE TO $300 BILLION. IT IS COMING AT AN INTERESTING TIME

WHEN OPENAI WANTS TO CONVERT TO A PROFIT ENTITY. REMEMBER, AT THE NONPROFIT ENTITY. I THINK MICROSOFT STILL OWNS 95% OF THE COMPANY. SO A LOT OF COMPLICATED PIECES HERE. BUT CLEARLY, ELON MUSK AND SAM ALTMAN DON'T GET ALONG VERY WELL. THE ANNOUNCEMENT SORT OF COMPOUNDED THAT, AND SEEING THE RESULTS THERE IN TERMS OF ELON MUSK LOOKING TO ACQUIRE THIS NONPROFIT ASSET. REBECCA: HOW DOES THIS AFFECT OPENAI'S PARTNERSHIP WITH MICROSOFT? WE KNOW THAT HAS BEEN CRITICIZED BY MUSK IN THE PAST, CALLED A MONOPOLY FOR EXAMPLE, BY HIM. DOES THIS DEEPEN OR RAISE MORE CONCERNS ABOUT THAT

RELATIONSHIP BETWEEN MICROSOFT AND OPENAI? MANDEEP: LOOK, MICROSOFT MADE AN INVESTMENT IN OPENAI, AND UNTIL OPENAI DECLARES AGI, THEY LOOK AT TODAY TO GET ALMOST 75% OF OPENAI'S PROFIT. SO I THINK MICROSOFT IS SOMEWHAT SAFE IN THIS SITUATION BECAUSE OF THE LEGAL BINDINGS AND WHAT THEY PHONE OF OPENAI. BUT CLEARLY, EVEN SAM ALTMAN'S HAS HAD FRICTION WITH MICROSOFT, GIVEN HIS AMBITIONS ON RAISING MONEY FOR TRAINING PLANS AND PROJECT ANNOUNCEMENTS. THERE IS SOME INTENTION OF GOING ON IN TERMS OF HOW OPENAI WANTS TO DECOUPLE FROM MICROSOFT. CLEARLY WHEN IT COMES TO THE LARGEST ADDITIONAL COMPANIES, I MEAN,

OPENAI AND MICROSOFT IS ONE ENTITY AND CAN YOU HAVE ANTHROPIC, GOOGLE GEMINI. AND XAI OWNED BY ELON MUSK. ELON MUSK CLEARLY WANTS TO MAKE SURE HIS COMPANY REMAINS RELEVANT WHEN IT COMES TO THE FRONT NATIONAL MODEL PROVIDERS. -- FOUNDATIONAL MODEL PROVIDER. REBECCA: BLOOMBERG INTELLIGENCE SENIOR ANALYST THERE, MANDEEP SINGH. I NEXT GUEST JOINS US FOR AN EXCLUSIVE CONVERSATION ON THE COMPANY'S GROWTH OUTLOOK AFTER HIS U.S. TRADING DEBUT. AND WE ARE COUNTED ONTO THE OPEN OF TRADE IN SHANGHAI, SHENZHEN AND HONG KONG. THIS IS "THE CHINA SHOW." ANNABELLE: YOU'RE WATCHING "THE CHINA SHOW," WE ARE SEEING THE

FUTURE IS LOOKING TO POSSIBLY ANOTHER DAY OF GAINS. SORT OF TRACKS WHAT WE'RE SEEING IN THE BROADER INDEX EX-JAPAN. THE EXECUTIVE ORDERS PROMPTLY SIGNED PUTTING THAT 25% TARIFF ON IMPORTS OF STEEL AND ALUMINUM INTO THE COUNTRY. THAT SENSE OF WHAT HAS BEEN THE INTERESTING DYNAMIC IS THE RALLY IN ASIA OR CHINA TECH STOCKS IN PARTICULAR. LET'S GET MORE AND BRING IN THE HEAD OF AIPAC EQUITY AND DELIVER THIS STRATEGY AT BNP PARIBAS, JASON LUI. WE COULD BRING UP THE CHART TO BEGIN STARTING WITH THE SOUTHBOUND VALLEY. THERE IS A LOT OF CONVICTION FROM MAINLAND INVESTORS

INTO WHAT IS HAPPENING IN HONG KONG. THERE'S TWO THINGS HAPPENING. FIRST YOU HAVE OPTIMISM AROUND DEEPSEEK PERHAPS. AT THE SAME TIME, A LOT OF INVESTORS ARE BUYING UP NAMES LIKE ALIBABA, MORE INSULATED FROM THE TARIFF RISK. WHAT IS DRIVING THIS THE MOST, CONVICTION AROUND THE STRENGTH OF CHINESE INNOVATION ARE LOOKING FOR HEDGES AGAINST TARIFF RISKS? JASON: WE CAN PROBABLY DIVIDE THAT QUESTION INTO TWO PARTS, START WITH THE TECH PART FIRST. THE SUCCESS OF DEEPSEEK BUT TWO THINGS, NUMBER ONE, YOU CAN DEVELOP A COMPETENT AI MODEL AT RELATIVELY LOW COST. NUMBER TWO, CHINESE TECH COMPANIES CAN

BE COMPETENT ON A GLOBAL LEVEL. THEY HAVE PROVEN TO BE BIG THINGS FOR THE MARKET AT A PRETTY MEANINGFUL GAME CHANGER. SECOND POINT IS TO YOUR POINT ABOUT SOUTHBOUND SUPPORT. BECAUSE THIS IS SOMETHING WE NOTICED LAST YEAR WHEN WE HAD A RECORD BREAKING MORE THAN 100 BILLION DOLLARS U.S. DOLLAR BUYING, AT THIS YEAR WE ARE LIKELY TO CONTINUE. SPECIFICALLY WHEN IT COMES TO SOUTHBOUND, THERE ARE NORMAL FOR INTERESTING CHARACTERISTICS TO PAY ATTENTION TO. FIRST ONE, SOUTHBOUND IS STRUCTURAL. WE ARE NOW 10 YEARS IN THE -- AND THIS IS THE MAIN CHANNEL FOR BOTH RETAIL AND

INSTITUTIONAL INVESTORS TO DEPLOY CAPITAL OFFSHORE. NUMBER TWO, SOUTHBOUND IS CONTRA-CYCLICAL UP BECAUSE WE TEND TO OBSERVE THIS BUY LOW AND SELL HIGH BEHAVIOR. IN FACT, SOUTHBOUND HAS BEEN RELATIVELY MUTED IN THE NEW YEAR UNTIL YESTERDAY. WHY YESTERDAY? BECAUSE SOUTHBOUND IS ALSO SUBJECTIVE TO RENMINBI MOVEMENT. WE HAD WITH MOVEMENT IN RENMINBI THAT PROMPTED URGENCY FOR INVESTORS TO BUY HONG KONG DOLLAR-DENOMINATED ASSETS, WHICH IS ASSET DIVERSIFICATION IN THEIR MIND. IN FINALLY, THIS YEAR, ONE OF THE MAJOR CHANGES WHICH COMES TO CAPITAL MARKET REFORMS IN CHINA IS THAT THESE LARGE COMPANIES ARE NOW PAYING DIVIDENDS AT LEAST TWICE

A YEAR. ONE STARTED IN JANUARY, OTHERS STARTED IN JULY. WHEN YOUR ONSHORE INTEREST RATE IS SO LOW, YOU NOW HAVE INVESTORS LOOKING FOR YIELD. YOU WILL NOT BUY THESE COMPANIES OPPORTUNISTICALLY WHEN YOU KNOW YOU ARE ELIGIBLE TO PICK UP MORE GOING FORWARD. SO THIS YEAR WE HAVE STARTED TO SEE THAT SEASONAL PATTERN, WHICH MAKES IT INTERESTING IN TERMS OF SOUTHBOUND FLEW INTO HONG KONG. ANNABELLE: WHAT DOES IT LOOK LIKE IF THERE IS THE SEASONALITY FACTOR, IS THE RALLY INTACT OR DO YOU SEE IT STREET INSIDE WAS A BIT? JASON: CERTAINLY, WE HAVE RALLIED A LOT,

BUT WE HAVE GIVEN BACK A LOT OF THAT OPTIMISM BACK IN Q4 LAST YEAR. THEY REALLY THINK ABOUT THE ASIAN MARKET AT THE MOMENT IS THAT WE THINK THERE IS ACTUALLY A VERY INTERESTING OPPORTUNITY BETWEEN THE TAIWANESE EQUITY AND THE CHINESE TECHNOLOGY. LOOK AT THE TAIEX VERSUS THE HOMESICK TECH INDEX. THERE IS THE TWO MAJOR THEMES, ONE ON THIS TECH SECTOR POSITION FROM HARDWARE TO SOFTWARE. WE KNOW THE TAIWANESE INDEX IS HEAVILY GEARED TOWARDS HARDWARE WHEREAS HANG SENG TECHNOLOGY HAS A MORE SOFTWARE COMPONENT. IT'S NOT JUST A GREATER CHINA THEME WE SEE THAT HAPPENING IN

THE U.S. AS WELL. THIS IS A MANIFESTATION IN ASIA. THE SECOND PART IS THE TYRA BANKS -- TEREX. YOU LOOK AT THE STEEL TARIFF, TAIWAN ACTUALLY RANKED NUMBER 5 IN TERMS OF BEING ONE OF THE ORIGINAL SOURCES OF SHIPPING INTO THE U.S., AND WE KNOW TRUMP IS ALSO THINKING ABOUT SHAPED TERRORISTS SO YOU COULD POTENTIALLY SEE MORE HEADWINDS IN THE NEAR TERM WHEN PEOPLE LOOK AT THE TAIWAN MARKET FROM A TARIFF PERSPECTIVE AS WELL. THIS TIME THERE IS A PLAYBOOK WHERE THE CHINESE POLICYMAKERS ARE TRYING TO FOLLOW THROUGH STEP-BY-STEP. SO I THINK THE TAIWANESE EQUITY

VERSUS HANG SENG TECHNOLOGIES IS A VERY INTERESTING PAIR TRADE IN MY MIND. REBECCA: WE HAVE TALKED ABOUT IT, CHIPS, HEADWINDS BUT THIS TIME OF YEAR WE WOULD BE THINKING ABOUT THE NCC AND WHAT WE ARE EXPECTING FROM THEM. I WANT TO ASK, DOES THE NPC -- WHY DOES IT MATTER? WHAT DO WE NEED TO SEE FROM THE NPC? WE HAD AN INTERESTING CONVERSATION WHERE A COLLEAGUE OF MINE SAID THE MOST HELPFUL THING THEY CAN DO IS NOT TALK ABOUT TECH. I WANT TO GET YOUR VIEW ON THAT? JASON: A WEEK AGO THERE WAS A LOT

OF OPTIMISM ON WHAT THE NPC WOULD DO KNOWING THE U.S. IS NOW INTRODUCING THE TARIFFS. I THINK WHAT HAPPENED IS DEEPSEEK BOUGHT US SOME TIME. NUMBER ONE, IT CAUSES PEOPLE TO RETHINK CHINESE TECH VALUATIONS. IT ALSO GIVES TIME FOR POLICYMAKERS TO RETHINK THE POTENTIAL MEASURES. FROM OUR SIDE, WE HAVE BEEN THINKING THAT THE NPC WOULD BE MORE TARGETED. WE STILL DON'T THINK THE CHINESE POLICYMAKERS WILL SIMPLY THROW A LOT OF MONEY AT THE PROBLEM, BECAUSE A LOT OF THOSE ISSUES ARE STRUCTURAL AND IT IS NOT SOMETHING THAT CAN BE SOLVED THIS YEAR. IN THAT SENSE,

I THINK PERHAPS THEY CAN LEVERAGE THAT DEVELOPMENT IN AI AND TRIED TO CHANNEL FUND FLOWS INTO AREAS THAT REQUIRED MORE SUPPORT THAN BEFORE. PERHAPS THIS DEVELOPMENT MIGHT ALLOW POLICYMAKERS TO BE EVEN MORE TARGETED WHEN IT COMES TO POLICY MEASURES FOR THE ECONOMY. REBECCA: THIS SOUTHBOUND SUPPORT WE HAVE SEEN, WHAT DOES IT TAKE TO GET FAR INSTITUTIONAL INVESTORS BACK INTO THIS MARKET? JASON: THIS IS SOMETHING THAT WE HAVE SEEN LAST YEAR AS WELL. IF YOU RECALL, THERE WAS A LOT OF HESITATION TO JUMP INTO CHINESE EQUITIES. BUT THE MARKET RALLIED 30% IN ONE WEEK, IT ATTRACTS

GLOBAL CAPITAL. IF YOU LOOK AT THE U.S. LISTED CHINA EDS, THE PAST ONE OR TWO WEEKS, THEY HAVE ATTRACTED A SUBSTANTIAL AMOUNT OF CAPITAL. THERE WERE NEWS REPORTS SUGGESTING THAT SOME OF THE MAJOR U.S. INVESTORS ARE STARTING TO READ A INTO CHINA. IN MY MIND, FOREIGN APPETITE IS KNOWN AS A FUNCTION OF MARKET PERFORMANCE, SO IS CHINESE EQUITIES CAN SUSTAIN THIS PERFORMANCE IN THE SHORT-TERM, CAPITAL FUND FLOWS WILL COME BACK FOR A TACTICAL TRADING OPPORTUNITY. ANNABELLE:. ANNABELLE: YOU ARE TALKING ABOUT CHINESE INNOVATION AND THAT GROWING GLOBAL AWARENESS OF THE STRIDES IT'S MADE IN A LOT

OF DIFFERENT SECTORS. FOR INSTANCE, BY JUMPING THIS MORNING TO A RECORD HIGH. CERTAINLY AT A LOWER PRICE POINT THAN IN THE PAST. SO HOW DOES THIS PLAY OUT? ARE THERE ANY SECTORS THAT YOU LOOK AT, IN PARTICULAR FOR THAT? JASON: WHEN WE THINK ABOUT AI PREVIOUSLY, THE ASSUMPTION IS THAT YOU SPEND A LOT OF MONEY AND ONLY BIG COMPANIES CAN USE AI. WHAT DEEPSEEK HAS DONE IS OPENED UP OUR MINDS TO LOOK AT COMPANIES THAT WERE PREVIOUSLY CONSTRAINED ON RESOURCES. TO YOUR QUESTION ABOUT SECTORS, I IMAGINE THE MORE TRADITIONAL SECTORS CAN BENEFIT NOW BECAUSE THE

THRESHOLD IS MUCH CHEAPER THAN EXPECTED. REBECCA: PART OF THE BYD STORY IS NOT JUST THE INTEGRATION OF AUTOMATION, BUT ALSO THEY MENTIONED THEY WILL START INTEGRATING DEEPSEEK. WE DON'T HAVE A TIMELINE YET FOR THAT. BUT I AM INTERESTED IN THIS CRITICISM ABOUT THE DIFFICULTY OF MONETIZING AI WHICH HAS BEEN A CHALLENGE FOR THE U.S. AND WILL BE FOR CHINA AS WELL. HOW DO YOU ASSESS THAT AND HOW QUICKLY DO YOU THINK WE WILL START TO SEE DEEPSEEK OR PERHAPS OTHER CHINESE AI COMPARABLE PLATFORMS BEING INTEGRATED INTO OTHER PARTS OF THE TECH UNIVERSE? JASON: INDEED THAT

IS PART OF THE DEBATE OVER THIS HARDWARE VERSUS SOFTWARE WHICH STARTED IN THE U.S. AND WE ARE SEEING HAPPENED NOW IN THIS PART OF THE WORLD. THERE IS AN ADVANTAGE OF USING SOMETHING THAT IS OPEN SOURCE OR CHEAPER BECAUSE IT CHANGES THE COST-BENEFIT CALCULATION. AND TO MY EARLIER POINT, THAT IS WHY THE MORE TRADITIONAL INDUSTRY WHO WERE PREVIOUSLY THOUGHT WOULDN'T BE THE FIRST MOVER IN AI, THEY NOT FORGIVING AT THE THOUGHT THAT THEY CAN EMBRACE IT. WE HAVE SEEN SO FAR THAT WHEN IT COMES TO THE APPLICATION SIDE, CHINESE COMPANIES HAVE DONE A LOT OF

EXPERIMENT IN THE PAST THREE YEARS. PERHAPS NOW WITH THIS TOOL, THEY NOW HAVE THE ABILITY TO DEPLOY QUICKER WHICH IS SOMETHING THAT WE HAVE ALSO CAUSED THE REEVALUATION OF THE TECHNOLOGY STOCKS IN HONG KONG, AS WELL. REBECCA: THANK YOU, JASON LOUK, HEAD OF APAC AND EQUITY DERIVATIVE STRATEGY AT BNP PARIBAS. WE ARE ALSO GOING TO BE KEEPING AN EYE ON BYD, BOND MARKETS AND STOXX. STAY WITH US. PLENTY MORE AHEAD. THIS IS BLOOMBERG. ♪ REBECCA: WE ARE WATCHING THIS BIG RALLY IN BYD TODAY, WE HAD THIS 20% JUMP UP LAST WEEK. IT IS REALLY AHEAD

OF THIS AND IS. AND NOW WE ARE SEEING THAT IT IS REALLY ABOUT THIS DRIVER ASSISTANT FEATURE BEING INTEGRATED INTO ALL THESE MODELS. ALSO KEEPING AN EYE ON THESE OTHER CHIP NAMES AS WELL. STAY WITH US. THIS IS BLOOMBERG. REBECCA: WELCOME BACK. GOOD MORNING. YOU ARE WATCHING "THE CHINA SHOW." WE ARE COMING DOWN TO THE OPEN MARKETS, 40 SECONDS OR SO AWAY. IT LOOKS LIKE A BIT OF POSITIVE MOMENTUM COMING BACK IN. ANNABELLE: WE HAD A GOOD NIGHT OVERNIGHT FOR THE GOLDEN DRAGON INDEX, ALL IS A GOOD INDICATOR. WE CONTINUE TO SEE IT AS SOUTHBOUND

RALLY AS WELL. A LOT OF CONVICTION FROM MAINLAND INVESTORS INTO HONG KONG. WE WERE DISCUSSING THE AMOUNT OF INNOVATION COMING OUT OF CHINA, YOU HAVE THESE ANNOUNCEMENTS AROUND BYD, THEY WILL BE INTEGRATING DRIVERLESS FEATURES INTO VIRTUALLY ALL THEIR FUTURE VEHICLE LINEUP. ADDING TO THAT IS INVESTORS CONTINUING TO LOOK FOR WAYS TO INSULATE THEMSELVES FROM THE LISTS. LET'S LOOK AT HOW CHINA IS COMING ONLINE. IT'S NOT DIRECT RISK VERY MUCH IN PLAY. REBECCA: ABSOLUTELY, PERHAPS TO YOUR POINT ABOUT MOMENTUM WE ARE SEEING, WE HAD THESE NEGATIVE DIRECT HEADLINES COMING THROUGH FROM TRUMP AT THE BEGINNING OF

TRADE WHEN WE CAME BACK FROM THE SPRING BREAK AND IT DID SEEM THAT FOLKS WERE RELATIVELY TENTATIVE. SEEMS SOME OF THAT IS BEHIND US, SOME OF THE RESERVATIONS PERHAPS IN THE REARVIEW MIRROR. ANNABELLE: THE CSI 300 IS FLAT. IF YOU LOOK AT WHERE WE HAVE BEEN IN 2025, WE ARE PROBABLY ABOUT 1% HIGHER. A LOT OF THE MOVEMENT IS IN HONG KONG. IF YOU LOOK AT HOW THE DASHBOARD IS THIS MORNING, IT IS THAT STORY AROUND THE TECH GAUGE. AGAIN, THE GAINS UNDERSHOOTING THE BROADER INDEX THIS MORNING, BUT A LOT OF THE ACTIVITY EVEN JUST

YESTERDAY, INTO THE SESSION AND AGAIN, COMING FROM MAINLAND INVESTORS BACK TO HONG KONG. THAT IS A STATE OF PLAY THERE. THE MOVES IN PARTICULAR, METALS AND MINERS VERY MUCH IN FOCUS. CHINESE NAMES MOVING HIGHER FOR THE MOST PART. TRUMP, OF COURSE, ISSUING THESE STEEL AND ALUMINUM TARIFFS WHICH START ON MARCH FOURTH. APPARENTLY NO EXCEPTIONS -- IS COULD BE AN EXCEPTION, BUT IT LOOKS LIKE HE'S TAKING A HARD STANCE ON THIS ON. IT'S NOT JUST WHAT IS HAPPENING IN THE METALS SECTOR. TRUMP IS SIGNALING THERE COULD BE MORE TO COME -- CARS AND CHIPS COULD BE

NEXT. TAKING A LOOK AT TRADING THIS MORNING, YOU MENTIONED BYD. THE STORY IS VERY MUCH AROUND WHAT WAS UNVEILED YESTERDAY. THEY ARE HAVING A SMART DIVING EXPANSION. THEY WILL BE INTEGRATING THE SO-CALLED DRIVERS-ASSISTANCE SYSTEM, MAKING IT A STANDARD FOR ALL VEHICLES WHICH ARE PRICED FROM AROUND $40,000 IN CHINA. ALSO LOOKING AT WHAT IS HAPPENING IN THE PROPERTY SECTOR THIS MORNING? ANNABELLE: YEAH, PERHAPS ONE OF THE LAGGARDS IN THE SPACE -- [LAUGHS] -- AS IT HAS BEEN FOR SEVEN YEARS. A BIT OF GOOD NEWS, CHINA VANKE HAS WON MORE SUPPORT FROM AUTHORITIES AS ITS LARGEST STATE

SHAREHOLDER AGREED TO PROVIDE UP TO $383 MILLION TO HELP THAT STRUGGLING DEVELOP OR REPAY ITS OUTSTANDING DEBT. FOR MORE, LET'S BRING IN CHINA CORRESPONDENT MINMIN LOW. TALK US THROUGH THE SIGNIFICANCE. THE TOTAL IS NOT THAT LARGE,, BUT IT IS WITH PROVIDING THE ASSISTANCE. MINMIN: IT IS PRETTY SIGNIFICANT BECAUSE, AS YOU SAID, IT'S RARE THAT THIS SUPPORT FOR A COMPANY LIKE THAT. THEY HAVE AGREED TO A THREE-YEAR SECURE LOAN AGREEMENT EXTENDING 2.8 BILLION YUAN IN LOANS IN EXCHANGE FOR 4 BILLION GRAIN IN COLLATERAL FROM CHINA VANKE. IT'S NOT THAT YOU HAVE A OFFICIAL FROM SHENZHEN METRO

TAKING THE REINS OVER THE COMPANY, TWO TOP EXECUTIVES FROM CHINA VANKE ARE STEPPING DOWN. LAST NIGHT WE WERE CHATTING ABOUT THE UNKNOWN WHEREABOUTS OF THE CEO WHO WAS REPORTEDLY TAKEN AWAY BY POLICE -- THAT HAD BEEN REPORTED BY LOCAL MEDIA. SO, TWO TOP EXECUTIVES ARE STEPPING DOWN. SHENZHEN METRO OFFICIALS TAKING OVER. PERHAPS SIGNALS THAT MAY BE CHINA VANKE THAT IS A COMPANY THAT IS JUST TOO BIG TO FAIL BECAUSE IT IS ONE OF THE TOP FIVE DEVELOPERS IN CHINA, HIRES ABOUT 130 EMPLOYEES IN CHINA. WE ARE SEEING THE BOND PRICES, IF YOU PULL UP THE

CHART, IT DROPPED 30% LAST MONTH DID BUT IT HAS BEEN COVERED MOST OF THAT LOSS SINCE THEN AFTER NEWS OF THIS STATE INTERVENTION CANNOT. ANNABELLE: "TOO BIG TO FAIL." WHAT ABOUT COUNTRY GARDEN, ANOTHER DEVELOPER WE HAVE TRACKED A LONG TIME. SALES CONTINUED TO WORSEN. MINMIN: YEAH, ANOTHER BIG DEVELOPER AMONG THE TOP FIVE. IT HAS SEEN DOUBLE-DIGIT DECLINES IN SALES SINCE THE MIDDLE OF LAST YEAR, AND IN JANUARY IT'S A ANOTHER 59% DECLINE IN SALES. REALLY NOT LOOKING REALLY GOOD. THE TREND IS DOWN SINCE OCTOBER OF LAST YEAR, WHICH MEANS THE GOVERNMENT'S SUPPORT MEASURES, THOSE PLEDGES

TO STOP THE DECLINE IN THE PROPERTY SECTOR, PERHAPS JUST NOT ENOUGH YET TO HELP PROVIDE CONFIDENCE. IT LOOKS LIKE HOME BUYERS ARE STILL FAVORING PURCHASES OF SECONDHAND HOMES OVER CONCERNS THAT SOME DEVELOPERS MAY NOT BE ABLE TO COMPLETE THESE HOUSES ON TIME. SO, COUNTRY GARDEN IS EXITED TO REACH AN AGREEMENT WITH KEY BONDHOLDERS BY THE END OF THIS MONTH. THEY ARE STILL NEGOTIATING DETAILS LIKE PAYMENT DEADLINES AND CONVERSION PRICES. BUT THE COMPANY HAS PLEDGED TO REACH AGREEMENT BY THE END OF THIS MONTH AND HAS SECURED AN EXTENSION IN THE HEARING UNTIL MAY FROM THE HONG

KONG COURTS. ANNABELLE: I GUESS THE PROBLEM IS WHEN YOU ARE COUNTING ON THE TURNAROUND IN SALES TO HELP WITH THOSE DISCUSSIONS. THAT WAS OUR CHINA CORRESPONDENT, MINMIN LOW THERE. A LOT OF FOLKS ON THE TAX BASE, A GROUP OF INVESTORS LED BY ELON MUSK HAVE OFFERED TO BUY THE NONPROFIT THAT CONTROLS WITHIN 84 $97.4 BILLION. IN A STATEMENT, MUSK SAYS HE HOPES TO RETURN OPENAI TO BEING THE OPEN SOURCE SAFETY-FOCUSED FORCE IT WAS FOR GOOD. SOME OF MONEY USING A POST ON MUSK'S X PLATFORM TO SAY "NO THANK YOU." TSMC IS EXPECTING FIRST QUARTER SALES

TO BE AT THE LOW END OF THE FORECAST RANGE. DUE TO PRODUCTION LOSSES FROM LAST MONTH'S EARTHQUAKES. THE TAIWANESE CHIPMAKER SAYS QUAKE LOSSES WERE ABOUT 160 MILLION DOLLARS. TSMC MAINTAINS ITS FOURTH-QUARTER GROSS PROFIT MARGIN FORECAST A FULL-YEAR OUTLOOK WIDTH REVENUE GUIDANCE AT NEARLY $26 MILLION. HON HAI REPORTED A 3% RISE IN JANUARY SALES AND STRENGTHENED ITS FIRST-QUARTER OUTLOOK. THE TAIWANESE FIRM IS NVIDIA'S MAIN SUPPLIER OF AI SERVICES, AND APPLE'S BIGGEST IPHONE DECEMBER. IT SAYS FIRST-QUARTER GROWTH. AVERAGE LEVEL OVER THE PAST FIVE YEARS. REBECCA: NOW, TURNING OUR ATTENTION TO ONE PARTICULAR STOCK, U.S. MR. LEE C-SHARES

IN CHINESE BIOTECH FIRM ASCENTAGE PHARMA HAVE GAINED 10% SINCE ITS DEBUT LAST YEAR. IT HAS ALSO BEEN LISTED IN HONG KONG SINCE 2019 -- YOU CAN SEE THE CHART ON THE RIGHT. FOR CONTEXT, THE STOCK IS UP 7% SINCE THE IPO IN HONG KONG VERSUS THE BROADER HEALTH CARE STOCKS IN HONG KONG, DOWN AROUND 46%, JUST TO GIVE YOU A BIT OF CONTEXT THERE. THIS FIRM FOCUSES ON BLOOD CANCER TREATMENTS. IT'S A U.S. LISTING CAME DESPITE THIS BROADER DOWNTURN IN THE HEALTH CARE SECTOR AND IN THE BROADER BIOTECH SECTOR IN THE THREE YEARS. DURING THIS

IS THE CHAIRMAN AND CEO OF ASCENTAGE PHARMA, YOUNGER JUNE. WE WANT TO TALK ABOUT YOUR LEADING DRUGS WHICH IS TARGETING LEUKEMIA. YOU HAVE THIS PARTNERSHIP WITH TAKEI THAT, THEY HAVE PAID 00 MILLION UPFRONT FOR THIS OPTION TO LICENSE. I WANT TO ASK, IS THAT DECISION CONTINGENT ON ANY MILESTONE OR A SPECIFIC CLINICAL DATA? WHAT SHOULD WE BE LOOKING FOR WHEN IT COMES TO THE LEAD DRUG FOR YOU? MR. YANG: THANK YOU FOR THE OPPORTUNITY. VERY GOOD QUESTION. WE ARE VERY EXCITED. WE ENTERED THIS GLOBAL PARTNERSHIP WITH TECH -- TAKEDA LAST SUMMER, A REALLY IMPORTANT MILESTONE

FOR OUR GLOBAL PHARMACEUTICAL MISSION. THIS PARTICULAR PRODUCT ADDRESSES THE AMOUNT OF MEDICAL NEED GLOBALLY, ESPECIALLY FOR THOSE WITH LEUKEMIA WITH MUTATIONS AND RESISTANCE. THIS PARTNERSHIP RIGHT NOW IS IN THE AGREEMENT, TAKEDA PAID AS 100 MILLION DOLLARS AND ALSO EQUITY INVESTMENT. RIGHT NOW IT IS PENDING SOME POTENTIAL FTC CLEARANCE, BUT, MORE IMPORTANTLY, WE ALREADY HAVE FDA-CLEARED GLOBAL -- TRIAL. WHEN THE PATENT EXPIRES NEXT YEAR, THEY CAN EXERCISE OF THE OPTION, WHICH THEY WILL HAVE GLOBAL COMMERCIALIZATION AND THE GLOBAL MARKET OUTSIDE CHINA. REBECCA: ARE YOU SEEKING ANY OTHER DEALS FOR DISCUSSING ANY OTHER DEALS FOR OTHER ASSETS

IN YOUR PIPELINE? MR. YANG: VERY GOOD QUESTION. ASCENTAGE HAS BEEN AROUND FOR 50 YEARS. WE STARTED IN THE U.S. ENVIRONMENT JABBING WE HAVE BEEN FOCUSING ON INNOVATION. CURRENTLY HAVE THREE CLINICAL STAGE -- FOCUSED ON -- AS A PATHWAY. WE ARE THE ONLY COMPANY GLOBALLY WITH THREE TARGETS FOR THAT -- PATHWAY. IN ADDITION TO THE COMPOUND, WE ALSO HAVE A LATE STAGE TRIAL TARGETING B CELL 2, WHICH IS A TRIAL FOR CHRONIC LEUKEMIA AND MANY OTHER LEUKEMIA DISEASES LIKE AML, MDS, OR MULTIPLE MYELOMA. MULTIPLE OTHER TRIALS IN THE CLINICAL STAGE WITH THE FDA CLEARING THESE. SO

WE HAVE A TOTAL OF FIVE CLINICAL STAGE ASSETS IN CLINICAL DEVELOPMENT IN THE U.S. AND THE REST OF THE WORLD. THOSE ARE ALL FDA-CLEARED ASSETS. ANNABELLE: SO THE LEAD DRUG THAT WE ARE TALKING ABOUT HERE TREATS LEUKEMIA. THE OTHER DRUG AS WELL THAT YOU HAVE NOTED, WHICH ALSO TREATS LEUKEMIA. THAT IS A DRUG THAT YOU'RE PLANNING TO LAUNCH, I BELIEVE, IN CHINA THIS YEAR. HOW ARE YOU PLANNING TO LAUNCH THAT, IS THAT SOMETHING YOU WILL BE LOOKING AT A COMPANY LIKE TAKEI THAT EXECUTE OR IS IT SOMETHING THAT YOU WANT TO DO ON YOUR OWN?

MR. YANG: GOOD QUESTION. FIRST WE FOCUS ON THE RESEARCH AND DEVELOPMENT FOR THE GLOBAL MARKET. THE SECOND, WITH MANY OTHER PIPELINE STUFF, WE CONTINUE TO FOCUS ON CLINICAL DEVELOPMENT, LOOKING FOR THE GLOBAL PARTNERSHIP THAT CAN COMPENSATE AND HAVE SYNERGY. MORE IMPORTANTLY, WE HAVE A TEAM IN THE U.S. AND IN AUSTRALIA AND EUROPE THAT CAN FOCUS ON CONTINUED DEVELOPMENT OF THOSE CLINICAL LATE-STAGE ASSETS. BUT OF COURSE WE ARE ACTIVELY LOOKING FOR A PARTNERSHIP OR GLOBAL COMMERCIALIZATION. ANNABELLE: AT WHAT PROFILE OF THE COMPANY THAT YOU ARE LOOKING FOR? CAN YOU SHARE THE SIZE AND SCOPE OF WHO

YOU WOULD LOOK TO? MR. YANG: I THINK WE'RE LOOKING FOR PARTNERS THAT CAN BRING VALUE, BRING THE COMPLEMENTARY EXPERTISE, ESPECIALLY OUTSIDE OF CHINA, THE U.S., OR EUROPE. MORE IMPORTANTLY, WE ARE LOOKING FOR A PARTNER THAT WILL BRING MORE RESOURCES, MORE CAPABILITIES FOR CLINICAL DEVELOPMENT AT, ESPECIALLY IN THE COMMERCIALIZATION FOR THE GLOBAL MARKET. REBECCA: DAJUN, IT'S HARD TO GET AWAY FROM THE ISSUE OF CHINESE SECURITY. THE CHINESE FIRMS HAS FACED A LITTLE SCRUTINY IN THE U.S. ESPECIALLY CHINESE BIOTECH. I WONDER TO WHAT EXTENT YOU AS A FIRM OPERATING IN THE U.S. CONTEXT, YOU ARE NOT ONLY

HAVE IT TO COMPETE WITH U.S. COMPETITORS, BUT ALSO OUT-COMPETE TO TRY AND COMBAT SOME OF THESE GEOPOLITICAL RISKS, SOME OF THESE CONCERNS FROM INVESTORS, EVEN JUST ABOUT THE MESSAGING FROM A LIABILITY POINT OF VIEW. DAJUN: VERY GOOD QUESTION. I THINK A LOT OF PEOPLE ARE FOCUSING ON THOSE POTENTIAL CHANGES. WE ARE CLOSELY MONITORING THEM AS WELL. BUT I AM A SCIENTIST. WE ARE BUSINESS FOCUSED. WE FOCUS ON GLOBALLY. OUR PRODUCTS, IS CLEARED BY THE FDA, CAN SAVE PATIENTS LIVES GLOBALLY. SO THAT IS THE FIRST THINGS FIRST. AS A COMPANY, AS SCIENTISTS, WE FOCUS ON INNOVATION

GLOBALLY AND MEDICAL NEED, THAT IS THE MOST IMPORTANT THING. WE ARE A GLOBAL BIOPHARMACEUTICAL COMPANY. WE STARTED WITH A FOUNDER IN THE U.S. AND WE ARE DOING WELL IN THE LAST 15 YEARS IN BOTH THE U.S. AND CHINA MET WITH CLINICAL DEVELOPMENT FOCUSED MORE ON NEED IN THE RMD SPACE. WE WILL LEAVE THOSE QUESTIONS TO THE POLITICIAN. I AM SURE THEY ARE LOOKING FOR THE BEST INTERESTS FOR THE PATIENTS. THAT IS WHAT WE ALL NEED. I THINK THAT IS A GLOBAL ISSUE THAT WE NEED TO SOLVE, TO DEVELOP THE BEST MEDICINES. REBECCA: TO YOUR POINT

ABOUT THIS NEED TO SOLVE THIS GLOBAL ISSUE, YOU ARE ONE OF THESE GENERATIONS OF THE SO-CALLED SEA TURTLES, YOU SPENT 30 YEARS OF TRAINING IN U.S. INSTITUTIONS WITH U.S. MENTORS, AND THEN TOOK THAT EXPERTISE BACK TO CHINA. AND YOU HAVE THIS RELATIONSHIP GOING BACK AND FORTH. BUT THAT TYPE OF ACADEMIC EXCHANGE, THAT PEOPLE TO PEOPLE EXCHANGE HAS REALLY COME UNDER THREAT OVER THE LAST FEW YEARS AS WE HAVE SEEN THE RELATIONSHIP BETWEEN CHINA AND THE U.S. DETERIORATE. I WANT TO ASK, HOW OPTIMISTIC ARE YOU ABOUT THE NEXT GENERATION OF U.S.-CHINA SCIENTIFIC DEVELOPMENT? ARE YOU ONE

OF THE LAST -- AT LEAST IN THE NEXT 10 OR 20 YEARS, THAT WE WILL SEE OF THIS GENERATION WHO REALLY BENEFITED FROM WHAT WE MIGHT NOW SEE AS A SORT OF GOLDEN AGE OF SCIENTIFIC COLLABORATION? DAJUN: I THINK THAT'S A REALLY GOOD POINT. ACTUALLY, I CAME TO THE U.S. ALMOST 40 YEARS AGO. AND THEN I DID MY PHD AND MY POSTOP TRAINING IN A LEADING INSTITUTION. MORE IMPORTANTLY AS A SCIENTIST, WE HAD A REALLY GOOD EXCHANGE AND COLLABORATION BETWEEN U.S. AND CHINA SCIENTISTS, IT IS REALLY IMPORTANT AND A BENEFIT FOR ALL PARTIES. WE CERTAINLY

HOPE THIS TREND WILL CONTINUE. MORE IMPORTANTLY, I AM ALSO REALLY OPTIMISTIC THAT OUR COLLABORATION AND THE MUTUAL BENEFIT TO THE PEOPLE IN THE U.S., CHINA, AND GLOBAL, WILL CONTINUE. I THINK WE SEE THAT TREND, SOMETIMES WE BE IT UP OR DOWN, DIFFERENT OPINIONS. BUT OVERALL, I AM CONFIDENT THAT THEY WILL ALSO COME TO SEE THE BENEFIT THAT THIS COLLABORATION WILL CONTINUE, WILL BRING THE VALUE TO THE U.S. AND CHINA. BUT OF THERE IS ALSO COMPETITION. BUT COMPETITION IS GOOD TO HAVE, RIGHT, AS LONG AS WE FOLLOW THE RULES, FOLLOW THE REGULATIONS. THAT'S WHAT WE HAVE

BEEN DOING, ESTABLISHING 15 YEARS AGO, STARTING IN THE U.S.. MY FIRST COMPANY STARTED IN 2003 IN THE UNITED STATES. SO AS LONG AS WE FOCUS ON THE SIGNS, FOCUS ON INNOVATION, ON THE MUTUAL COLLABORATION AND A GOOD RELATIONSHIP WILL CONTINUE FOR THE BENEFIT OF PEOPLE AROUND THE WORLD. REBECCA: DAD JUNE JANIK, THANK YOU SO MUCH FOR JOINING US, COFOUNDER AND CHAIRMAN AND CEO AT ASCENTAGE PHARMA -- DAJUN YANG. ANOTHER INTERVIEW COMING UP, WE HAVE A CFO OF CSL JOINING US TO DISCUSS THEIR FIRST PROFIT MYTHS AND THE SECTOR'S OUTLOOK. THIS IS BLOOMBERG. ANNABELLE: TAKING A

LOOK AT HOW METALS ARE FARING THIS MORNING. WE ARE SEEING ALUMINUM AND COPPER A BIT UNDER PRESSURE. THOSE ARE THE LONDON CONTRACTS. U.S. CONTRACTS ACTUALLY MOVED HIGHER AFTER TRUMP PUSHED OUT THESE TARIFFS ON STEEL AND ALUMINUM THAT WILL TAKE EFFECT IN EARLY MARCH. GOLD IS WHERE WE ARE SEEING A LOT OF MOVES, ACTUALLY HITTING A FRESH RECORD HIGH. LET'S GET MORE ON THE OUTLOOK FOR GOLD WITH OUR ASIA COMMODITIES EDITOR ANDREW JAMES JOINING US FROM SINGAPORE. ANDREW, IT'S A CONFLUENCE OF FACTORS DRIVING THE MOVES IN GOLD AND HAS BEEN FOR A WHILE NOW, BUT LET'S

START OFF WITH WHAT IS FRONT AND CENTER FOR YOU. WE ARE TALKING ABOUT TARIFFS, THE FED, CHINA BUYING -- WHAT IS THE BIGGEST FACTOR? ANDREW: FOR GOLD, I THINK WE'RE MERELY TALKING ABOUT TRUMP RIGHT NOW. OBVIOUSLY THE TARIFFS, WORRIES ABOUT EXPANDING TRADE WARS AND ALSO SOME OF HIS GEOPOLITICAL PROCLAMATIONS, IT IS REALLY MAKING PEOPLE NERVOUS AND THAT IS ALL FEEDING INTO HAVEN DEMAND. GOLD IS UP 11% THIS YEAR AFTER A 27% RALLY IN 2024, AND IT HAS BEEN SETTING SUCCESSIVE HIGHS ALL THE TIME. CITI SAID THEY EXPECTED TO GO THROUGH $3000 SOON. THE FADING EFFECT

FOR GOLD, I GUESS, IS IF TRUMP'S POLICIES IGNITE INFLATION. THAT WOULD MEAN THAT THE FEDERAL RESERVE WILL HAVE TO SLOW DOWN OR PAUSE RATE CUTS AND THAT WILL BE NEGATIVE FOR GOLD BECAUSE IT DOESN'T PAY INTEREST. BUT WHO KNOWS -- THE HAVEN DEMAND COULD OUTWEIGH THAT. OBVIOUSLY, THE TARIFFS, WE GOT THE OFFICIAL WORD ON THE ALUMINUM AND STEEL TARIFFS. FUNNILY ENOUGH, CANADA WILL BE QUITE A BIT OF THAT, EVEN THOUGH TRUMP DELAYED THE TARIFFS ON CANADA AND MEXICO, MORE THAN HALF OF U.S. ALUMINUM IMPORTS ARE FROM CANADA. CANADA IS AMONG THE BIGGEST STEAL EXPORTERS TO

THE U.S. ALONG WITH MEXICO AND BRAZIL. SO CANADA IS BEARING THE BRUNT OF THAT. WILLIAM DENNING, A BLOOMBERG COLUMNIST, HAS ACTUALLY SUGGESTED THAT CANADA SHOULD LOOK TO WEAPONIZE ITS OIL EXPORTS TO THE U.S. GIVEN HOW CLOSELY THE U.S. AND CANADIAN ENERGY SYSTEMS ARE INTERLINKED. HE WAS TALKING ABOUT AN EXPORT TAX OR EVEN AN EXPORT BAN IN AN EXTREME SCENARIO. REBECCA: YOU HAVE TOUCHED ON ALUMINUM AND SOME OF THE IMPACT OF, BUT WHERE ELSE ARE WE SEEING POTENTIAL IMPACT ELSEWHERE IN THE COMMODITY SPACE? AND I SUPPOSED TO YOUR POINT ABOUT THIS POSSIBILITY OF WEAPONIZING OTHER COMMODITIES,

OIL OR WHATEVER IT MAY BE, WHAT ARE SOME OF THE WAYS COUNTRIES MIGHT BE ABLE TO RETALIATE OR RESPOND? ANDREW: CANADA WOULD BE IN THE STRONG POSITION ON FOIL. I THINK WE'RE SEEING A BIT OF A REORDERING OF SORT OF GLOBAL OIL FLOWS THAT COULD ACCELERATE, DEPENDING WHERE THESE TRADE WARS GO. GOLD IS THE MAIN BENEFICIARY OF ALL OF THIS UNCERTAINTY. AND THAT WOULD DEPEND. I MEAN, SUPPLY CHAINS CAN SORT OF RECONFIGURE PRETTY QUICKLY. BUT OFTEN THAT WILL ADD TRANSPORT COSTS. SO, WHO KNOWS WHAT WILL HAPPEN. [LAUGHS] REBECCA: I AM SURE WE WILL BE TALKING

TO YOU AGAIN. WE WILL BE KEEPING AN EYE ON THIS SPACE, BLOOMBERG'S ASIAN ENERGY AND COMMODITIES EDITOR, ANDREW JAMES THERE. PLENTY MORE AHEAD. THIS IS BLOOMBERG. ANNABELLE: TAKING A LOOK AT SOME OF THE MOVERS IN THE SESSION SO FAR THIS MORNING, BYD WAS HITTING A FRESH RECORD HIGH, UP 4%. BUT WE ARE STARTING TO SEE IT GIVE UP SOME OF ITS GAINS. IT IS INTEGRATING DRIVER ASSISTANCE TO THE BUDGET OF VIRTUALLY ALL ITS VEHICLE LINEUP MOVING FORWARD. OTHER AUTOMAKERS ARE UNDER PRESSURE OFF THE BACK OF THIS ANNOUNCEMENT, IT IS HEARTILY SENDING SHOCKWAVES. WHAT WE ARE

TRACKING SO FAR IS SHARES OF TSMC IN TAIWAN, WE HAD MONTHLY SALES FIGURES. SOME OF THE OTHER MOVERS. LET'S WELCOME BACK TO THE CHINA SHOW. WE ARE HALF AN HOUR INTO THE SESSION. LET'S TAKE A LOOK AT THE HSI. WE CAME IN TODAY THINKING THERE WAS A LITTLE BIT OF POSITIVE MOMENTUM. IT DOES LOOK LIKE WE ARE GIVING UP SOME OF THAT MOMENTUM SO FAR. I AUTOMAKERS, APART FROM PYD, IN FOCUS ABOUT DRAGGING DOWN WHEN IT COMES TO THE HSI INDEX JUST A TOUCH. >> HEALTH CARE, REAL ESTATE MORE UNDER PRESSURE THIS MOR -- REALLY

STARTING TO PILE INTO THAT, A LOT OF CONVICTION FROM MAINLAND CHINA, WHAT ELSE IS IN FOCUS IS HAVING THE COMMODITY SPACE BECAUSE JUST A COUPLE OF HOURS AGO WE HAD PRESIDENT TRUMP SIGN A SERIES OF EXECUTIVE ORDERS, HE TARGETING STEEL, ALUMINUM, HE WANTS WAR TO COME BACK ON SHORE IN THE U.S. THE MARKET REACTION TO THAT, WE HAVE BEEN MONITORING THE DIFFERENT CONTRACTS. YOU HAVE THE CHINA WINE, THE PRIMARY ONE, THEN YOU HAVE WHAT HAPPENS IN THE U.S. LISTING. WE DID SEE DOLLARS MOVING A LITTLE BIT HIGHER, GO IS PRETTY MUCH THE STAND OUT SO

FAR TODAY BECAUSE WE ARE IN A FRESH RECORD HIGH, A LOT OF HAVEN DEMAND COMING THROUGH, A LOT OF UNCERTAINTY AROUND WHAT THE FED CAN DO, WILL THEY BE HAMSTRUNG IF THESE TARIFFS BECOME INFLATIONARY, THAT'S THE BIG RISK. WE HAVE SEEN A BIT OF A MOVE COMING THROUGH IN CURRENCIES, DOLLAR STRENGTH BACK IN PLAY, YOU SEE THAT REALLY AGAINST THOSE MAJOR TRADING PARTNERS. THE CANADIAN DOLLAR, THE MEXICAN PESO, THE AUSSIE DOLLAR ANOTHER ONE TO NOTE. IN THE TAIWANESE DOLLAR IS ALSO THE STORY AROUND SALES FOR HON HAI AND TSMC, WE HAD MONTHLY FIGURES OVERNIGHT. THAT'S

THE TECH STORY, LET'S GET BACK TO THE TERRIFYING. >> MORE ON THIS STORY ABOUT TRUMP'S TARIFFS FEELS LIKE WE HAVE BEEN DISCUSSING IT FOR YEARS, IT'S REALLY BEEN TWO TO THREE WEEKS. LET'S BRING IN OUR CHIEF NORTH ASIA CORRESPONDENT STEPHEN ENGLE. JUST LAY OUT HOW SWEEPING THESE TARIFFS MIGHT BE? STEPHEN: I'VE SPOKEN ABOUT TARIFFS EVERY SINGLE DAY SINCE INAUGURATION. THEY ARE GOING TO BE SWEEPING. EXPANSION AND AN ENHANCEMENT OF WHAT DONALD TRUMP DID ON THE STEEL, ALUMINUM TARIFFS IN HIS FIRST TERM. THIS TIME, NO EXCEPTIONS. THEY BASICALLY GOT EXEMPTIONS FOR CANADA, FROM MEXICO AND BRAZIL

IN THE FIRST TERM, IT DOESN'T MATTER IF YOU'RE AN OUTLIER KEY TRADING PARTNER, THE TARIFFS OF 20 5% ON IMPORTS TO UNITED STATES OF STEEL AND ALUMINUM WILL APPLY EQUALLY TO EVERYBODY. AGAIN, CANADA, MEXICO, BRAZIL, SOUTH -- MEXICO, GERMANY. THE ONE EXCEPTION POSSIBLY BECAUSE DONALD TRUMP, THERE STILL THREE MORE WEEKS UNTIL PLEASE TAKE EFFECT ON MARCH 4, THREE WEEKS TO THE DAY. WE WILL TALK ABOUT THIS FOR THE NEXT THREE WEEKS AS WELL. SO THERE IS ROOM FOR NEGOTIATION. AN ALREADY DONALD TRUMP IN THIS IMPROMPTU PRESS CONFERENCE AS HE SIGNED THE EXECUTIVE ORDERS THAT HE

HAD A PHONE CALL WITH THE AUSTRALIAN PRIME MINISTER, HE SAID HE IS A GREAT MAN, WE HAD A GREAT CONVERSATION, WE WILL CONSIDER POSSIBLY GIVING IN EXEMPTION TO AUSTRALIA'S STEEL. THAT WOULD BE BECAUSE HE SAYS THE UNITED STATES HAS A TRADE SURPLUS WITH AUSTRALIA. AUSTRALIA HAS THAT DEFICIT LARGELY BECAUSE OF THE LARGE AIRCRAFT ORDERS THAT HAVE COME TO AUSTRALIA. BUT STILL, HE WAS ASKED ABOUT THE U.K. WHAT ABOUT THE U.K. EXEMPTION, A CLOSE ALLY, HE SAID NO, WE HAVE A TRADE DEFICIT WITH THE U.K., SO IT WON'T HAPPEN. WE WILL BE CIRCLING OUR CALENDARS FOR

MARCH 4, THAT'S WHEN THIS TAKES EFFECT. BUT THERE'S GOING TO BE NEW TARIFFS AS WELL. HE'S THREATENED ABOUT ON AUTOMOBILES PARTICULARLY IN EUROPE. HE'S TALKED ABOUT SHIPS, PHARMACEUTICALS, THEN A BROADER RECIPROCAL TARIFF. ANNABELLE: I THINK IT'S INTERESTING WHEN YOU LOOK AT THE MARKET REACTION, WE HAVE DIFFERENT CONTRACTS WE CAN CHECK FOR ALL COMMODITIES BUT DALLY ON, COMICS, EL EXD, AND WHEN YOU LOOK AT HOW IRON ORE IS FARING IN DALLY ON, THE CHINESE CONTRACT, YOU SEE IT MOVING HIGHER IN OUTPACING THOSE CONTRACTS. CHINA IS THE WORLD'S BIGGEST STEEL PRODUCER, WHAT IS THAT TELL YOU ABOUT

HOW IT COULD INTERPRET OR REACT TO THESE TARIFF RISKS? STEPHEN: THEY ARE STILL IMPORTING IRON ORE. THEY STILL HAVE DOMESTIC DEMAND AS THEY DEVELOP THE ECONOMY BUT THE ECONOMY HAS SLOWED. THEY BECOME A LARGER EXPORTER OF ITS STEEL AND SOME WOULD SAY IT'S EXCESS STEEL. YES, CHINA IS DOWN THE LIST A LITTLE BIT. OVERALL OVER THE YEAR I BELIEVE CHINA'S NUMBER FOUR ON THE LIST OR NUMBER FIVE AFTER TAIWAN AS WELL, FOR THE NATIONS THAT EXPORT STEEL AND ALUMINUM TO THE UNITED STATES, NOT IN JANUARY, THEY WERE NOT ON THE TOP TABLE, BUT THEY ARE

FINDING WAYS TO GET THEIR STEEL INTO THE MARKET AND THEN INDIRECTLY TO THE UNITED STATES DESPITE THE FACT THAT THE BIDEN ADMINISTRATION DID IMPOSE A 25 PERCENT TARIFF IN SEPTEMBER FOR CHINESE ALUMINUM AND STEEL. WHAT'S HAPPENING ACCORDING TO THE WHITE HOUSE IS, FOR EXAMPLE, I WILL GIVE YOU TWO, THEY ARE CLAIMING CHINA IS, BECAUSE OF THE SLOWING ECONOMY, EXPORTING THEIR STEEL TO PLACES LIKE MEXICO AND CANADA, WHICH ARE THE TWO LARGEST EXPORTERS OF STEEL TO THE UNITED STATES. IN TURN, THOSE ARE LOWER PRICE STEEL PRODUCTS FROM CHINA AND THEN IN TURN THE WHITE HOUSE SAID

MEXICO, CANADA ARE SELLING THEIR HIGHER PRICED STEEL INTO THE UNITED STATES. SO INDIRECTLY CHINA IS HAVING AN IMPACT ON GETTING AROUND THAT WAY. THEY ARE ALSO SAYING CHINA IS SELLING STEEL TO COUNTRIES LIKE VIETNAM THAN VIETNAM FINISHES THE STEEL, REPACKAGES IT, REBRAND SIT IN EXPORTS IT AS VIETNAMESE STEEL. THAT'S WHY DONALD TRUMP IS GOING 25% TARIFF ON EVERYBODY. FRIEND OR FOE, 25% TARIFF. ANNABELLE: THAT'S WHAT IT'S ABOUT, TRYING TO CLOSE THESE LOOPHOLES. THAT WAS OUR CHIEF NORTH ASIAN CORRESPONDENT STEPHEN ENGLE. LET'S GET MORE ON THE MARKET REACTION AND BRING IN THE PORTFOLIO MANAGER AT FIDELITY.

YOU TAKE A LOOK AT THE VOLATILITY GAUGE AND WE HAVE SEEN THOSE RISING ACROSS THE BOARD THIS MORNING, IS THAT WHAT YOU CAN READ FROM ALL OF THIS, MORE UNCERTAINTY AND MORE UNKNOWNS AHEAD FOR MARKETS? >> I THINK A LOT OF SENTIMENT>> IS SHIFTING IN THE CHINA MARKET OR THE MARKET THAT'S DRIVEN BY THE ACTIONS AND CHINA. CERTAINLY CHIP -- TECH. IN THE TECH SPACE WE SEE A LOT OF CHINA DRIVEN PRICE ACTION SPARKING A LOT OF VOLATILITY. I THINK THE MARKET IS STILL WORKING OUT WHAT YOU THINK. >> IN SOME WAY IT'S BEEN A

TALE OF TWO NARRATIVES. THE TARIFFS ON THE REVERSALS. THIS STORY ABOUT CHINESE AI AND DEEPSEEK, WHAT KIND OF OFFSET DO YOU THINK THAT THE DEEPSEEK INNOVATION IS REALLY GOING TO PROVIDE CHINESE MARKETS? >> I THINK DEEPSEEK IS A TREMENDOUS MOMENT. I THINK IT'S A MUCH-NEEDED BOOST ON ANIMAL SPIRIT FOR CHINESE MARKETS, CHINESE ECONOMY AT LARGE. I THINK IT'S INCREDIBLY IMPORTANT IN THE CONTEXT THAT THE ECONOMY HAS A LOT OF STIMULUS. IT IS A BIG PICTURE TAKE. AT A MORE GRANULAR LEVEL I THINK DEEPSEEK PUTS THEM ON THE SAME COMPETITIVE GROUND WITH THE U.S. AGAIN. YOU

WILL PROMPT A RE-THINK OF THE RESTRICTIONS THROUGH TO CHINA BECAUSE THE TWO COUNTRIES ARE THE TECH COMMUNITIES ARE FINDING COMMON GROUND AGAIN. TO START WITH ALL THE MAJOR U.S. TECH PROVIDERS HAVE ALREADY HOSTED DEEPSEEK MODELS ON THEIR PLATFORM. SO THE MORE POPULAR THIS MODEL, THE CLOUD REVENUE THEY GET. WE ALSO THINK THAT AS MODELS BECOME CHEAPER, MORE VALUE WILL BE CREATED FROM A I APPLICATION, COMMERCIAL USE CASES AND CERTAINLY AI MODEL IS RAW MATERIAL COSTS. ALSO TAKE US STEP BACK I THINK THERE'S A GRAND VISION OF GENERAL ARTIFICIAL INTELLIGENCE, AGI IS A COMMON GOAL FOR

A LOT OF PEOPLE WORKING ON THIS. BUT REALLY IT RESHAPES A LOT OF THE NARRATIVES. >> ARE YOU MORE BULLISH ON THE CHINESE MARKET OR ON CHINA TECH, HOW MUCH ARE YOU ADDING HERE? >> WE HAVE ADDED AND WE HAVE ALL REPOSITION AT THIS MOMENT. I THINK THERE'S THE ECONOMIC FUNDAMENTAL, THERE IS THE ANIMAL SPIRIT OF IT, AND I THINK THERE'S ALSO JUST A FUNDAMENTAL POSSIBILITY THAT IT COMES FROM. NOW THAT WE HAVE THIS NEW, EXCITING TOOL, HOW DO WE USE IT AND WHAT ARE THE POTENTIAL ECONOMIC COLLABORATION WITH THE REST OF THE WORLD. ANNABELLE:

THAT SOUNDS GREAT BUT AT THE SAME TIME I'M SORT OF THINKING ABOUT WHAT IS DEEPSEEK COMING UP AGAINST IN IS THERE INVESTIGATIONS IN THE U.S. THAT THERE ARE CONCERNS FOR HOW THEY USED OPENAI, YOU SEEN GOVERNMENTS THAT ARE LOOKING AT SHUTTING DEEPSEEK OUT FOR USE AS WELL. THERE'S A LOT OF HEADWINDS FACING THIS TECHNOLOGY AND THEY ARE STILL UNRESOLVED ISSUES WITHIN CHINA. THEY'RE STILL BYD AND THE EXPANDING SELF DRIVING SYSTEMS IN THE VEHICLES MOVING FORWARD AND YOU SEE CHINESE AUTOMAKERS FALLING OFF THE BACK BECAUSE IT'S JUST ANOTHER LAKE THAT THE BYD HAS IN THIS RACE

AGAINST ITS INTERNAL COMPETITORS. THERE STILL A LOT OF STRUCTURAL ISSUES THAT HAVEN'T BEEN RESOLVED YET IN THE CHINESE ECONOMY. >> ABSOLUTELY, I AGREE WITH YOU. THERE'S DEFINITELY A LOT OF EXCITEMENT WITH TECH EVENT SPECIFICALLY AROUND DEEPSEEK. I WAS ON THE RADIO EARLIER, HOW MANY MORE, THIS MUST NOT BE THE ONLY ONE, SO THERE'S A LOT OF EXCITEMENT. WITH THAT EXCITEMENT COMES A CONTROVERSY AS WELL. I THINK IT SHOULD BE ALL WELL AND EXPECTED THAT THERE WILL BE EXCITEMENT, SO THE STEP BACK I THINK IS A NORMAL SET UP. BUT TAKE A STEP BACK. I THINK

WHICH CHEAPER AND MORE ACCESSIBLE AI IS GOING TO BE MUCH BIGGER, AND IT WILL BE SLICE DIFFERENTLY, WHETHER IT'S BETWEEN TRAINING OR APPLICATION OF THE MODEL, WHETHER IT'S BETWEEN INFERENCE TRAINING, WHETHER IT'S BETWEEN U.S. OR CHINA, WHETHER IT'S BETWEEN CUSTOMIZED CHIPS OR STANDARDIZE CHIPS. THE PIE WILL BE SLICED AND DICED. AND WHEN YOU START TO MOVE PEOPLE'S SLICES, THERE WILL BE CONTROVERSY. BUT I THINK IT'S A FAIRLY STRAIGHTFORWARD PREDICTION THAT THE ECONOMIC PIE WILL GROW SIGNIFICANTLY ON THE BACK OF THIS PRODUCTIVITY TOOL BEING ADOPTED. REBECCA: IS YOUR VIEW ON DEEPSEEK AND AI SHIFTING YOUR VIEW

ON OTHER MARKETS? ARE YOU STILL IN LIGHT OF THE TARIFF RISKS AND AI DEVELOPMENTS, ARE YOU STILL LIKE GIVING THE TAIWANESE MARKETS? QUAKES AT THIS VERY MOMENT I AM NEUTRAL ON THE TAIWANESE MARKET. I THINK THERE ARE COMPANIES THAT HAVE A REPLACEABLE POSITIONS AND AI. THERE IS NO ARGUMENT AROUND IT, BUT EXACTLY TO THE EARLIER POINT OF THAT PIE GETTING RE-SLICED AND RE-DISTRIBUTED, TO WHAT EXTENT THAT'S AFFECTED INCREMENTALLY I THINK THAT NEEDS TO BE CAREFULLY WORKED OUT. ANNABELLE: IT'S INTERESTING YOU ARE NEUTRAL ON TAIWAN, DO YOU THINK IT HAS ALREADY HAD SUCH A GOOD RALLY

THAT YOU DON'T SEE IT EXTENDING MUCH FURTHER FROM HERE, OR WHAT EXACTLY IS DRIVING THAT? >> TAIWANESE MARKET IS AN EXCITING MARKET WITH A HIGH-QUALITY COMPANY BUT IT'S A CYCLICAL MARKET. SO IT HAS GONE UP SO MUCH AND GONE SO WELL, AND I THINK IT'S JUST A REGULAR PORTFOLIO MANAGEMENT DECISION. WHEREAS AT THE SAME TIME THE RECENT DEVELOPMENTS SURROUNDING CHINA HAS PUT THE CHINA MARKET BACK IN THE SPOTLIGHT AND I THINK THERE'S A TYPICAL PORTFOLIO FLOW BETWEEN THE COUNTRIES. REBECCA: WHAT YOU WANT TO SEE FROM THE NPC? >> I THINK POLICIES SUPPORTING FROM A MARKET

PERSPECTIVE, MORE PRO-BUSINESS POLICIES. PROTECTING ANIMAL SPIRIT. ANNABELLE, WE HAVE CCTV REPORTING ON A MEETING WITH THE VICE PREMIER TALKING ABOUT MEASURES TO TRY TO BOOST CONSUMPTION BUT AT THAT SAME TIME WE WERE JUST LOOKING BEFORE AT WHICH DRAGGING DOWN THE HANG SENG THIS MORNING AT ITS CONSUMER DISCRETIONARY. SO HOW MUCH CONVICTION IS THERE IN THE POLICY SUPPORT AT THIS POINT? >> I THINK THERE IS THE TENSION BUT GREATER ECONOMIC FUNDAMENTAL THAT IS PEOPLE ARE EVALUATING THEIR EARNING PROSPECT, PERSONAL WEALTH PROSPECT AND AT THE SAME TIME I THINK THERE IS THE EXCITEMENT ABOUT VARIOUS STIMULUS POLICY,

EXCITEMENT ABOUT TECH BREAKTHROUGHS, EXCITEMENT ABOUT -- THE STOCK MARKET HAS GONE UP PRETTY SIGNIFICANTLY IN THE RECENT TIME. I THINK ALL OF THESE FACTORS ARE AT PLAY AGAINST EACH OTHER. IT WON'T BE A STRAIGHTFORWARD LINE THE FORWARD MARKET HAS GONE SOMEWHERE FROM THIS PAST PEAK AND I THINK IT IS MORE LIKELY THAT THE MARKET WILL EXPERIENCE A RECOVERY. REBECCA -- REBECCA: THANK YOU SO MUCH, PORTFOLIO MANAGER AT FIDELITY. AND STILL AHEAD ON THE CHINA SHOW, THE CEO OF AUSTRALIAN BIOTECH GIANT JOINS US EXCLUSIVELY AFTER THE COMPANY REPORTED PROFITS FELL SHORT OF ANALYST ESTIMATES. [INDISCERNIBLE] ANNABELLE:

TAKING A LOOK AT HOW BYD IS FARING. HE CAME ON 4% HIGHER. IT'S GIVEN UP THOSE GAINS IN THE SESSION. LASTLY, A VERY STRONG RALLY FOR THE MAJOR CHINESE AUTOMAKER. BUT THE CARMAKER OVERNIGHT ANNOUNCING PLANS TO INTEGRATE THEIR CHINESE NAME DEEPSEEK AI MODEL INTO ITS EV SOFTWARE. LET'S GET MORE WITH OUR TRANSPORT REPORTER JOINING US FROM HONG KONG. NOT JUST THE INTEGRATION OF DEEPSEEK, ALSO THIS ANNOUNCEMENT TO MAKE VIRTUALLY ALL OF ITS FUTURE LINEUP HAVE SOME SORT OF AUTONOMOUS DRIVING CAPABILITIES. HOW SIGNIFICANT IS THIS ANNOUNCEMENT? >> IT'S A GAME CHANGER FOR THE CHINESE EV MARKETPLACE

BECAUSE VERY FEW MARK -- CARMAKERS HAVE BEEN ABLE TO GET ANY KIND OF SHREDDING SYSTEM INTO THEIR CAR BELOW 151. BASICALLY 10,000 U.S. DOLLARS. IT'S A BIG SHOT UP RIVALS TO TRY TO MOVE AS FAST AND AT THE SCALE OF WHICH PYD CAN AND ARE SO MUCH BETTER FUNDED. WITH ITS PRICE POINTS NOT ACTUALLY CHANGING, THIS DISRUPTS MARKETS BECAUSE THEY HAVE SOMETHING EXTRA TO OFFER WHEN IT COMES TO WHAT THEY CURRENTLY HAVE IN THE NOTION THAT HAS FALLEN BEHIND ON TECH IN THE LAST COUPLE OF YEARS. WOULD HE HAVE THE COMPETITION FOR SOMETHING LIKE TESLA

AS WELL HAVING THEIR OWN CAPABILITIES, THIS IS SOMETHING THEY COULD DO TO MATCH. REBECCA: IS IT BECAUSE WE HAD A 20% RUN-UP LAST WEEK IN ANTICIPATION AND OTHER FACTORS AT PLAY? >> I THINK EVERYONE IS FOCUSED ON PYD'S GAINS AND IMPROVEMENTS IN THE AUTONOMOUS DRAIN SPACE. BE READY HAS EXPOSURE TO THE MARKET WOULD OWN IT COMES TO AUTONOMOUS DRIVING, THEY'VE HAD SUCH A RUN-UP LAST WEEK AROUND 20% OR SO. THEY ARE TAKING A LITTLE BIT OF TIME TO DIGEST AND HOW MUCH CAN BYD DELIVER. ALREADY WHAT THEY'VE DONE IN 2024 TO TRY TO DO EVEN

MORE WITH THE ABSORBING OF THIS ADDED HARDWARE AND FEATURES OF SOFTWARE, CAN ACTUALLY DELIVER. THUS THE PRESSURE ON PYD WITHOUT MAKING THE PRICE CUTS TO JUST DELIVER ON WHAT IT HAS GOT WITH ITS EXTRA FEATURES. REBECCA: HOW MUCH IS THIS GOING TO HURT AND WHO SHOULD WE BE WATCHING? >> SHOULD BE LOOKING AT THE FOREIGN AUTOMAKERS, PARTICULARLY JEREMY -- GERMANY AND MERCEDES. THE LEVEL OF TARIFFS FOR THOSE, THE IMPACT IS LIMITED BECAUSE THE VOLUMES ARE QUITE SMALL. IT SPEAKS TO THE TIT-FOR-TAT WE HAVE SEEN OVERALL BETWEEN NOT JUST CHINA AND THE U.S., CHINA AND EUROPE

IN TERMS OF THESE DISPUTES OVER TARIFFS. SO IS JUST A CONTINUATION OF TARIFFS EVERYWHERE. ANNABELLE: THE INTEGRATION OF DEEPSEEK, HOW WOULD IT LOOK AND DO WE HAVE DETAILS ON THE TIMING OF INTEGRATION? >> THE TIMING IS UNCLEAR. FIRST OF ALL, YOU CAN SEE BYD FROM THE COMPONENT OF DRIVERS ASKING FOR THINGS IN THE CAR, USING VOICE-ACTIVATED SYSTEM, EASY ENOUGH TO UNDERSTAND. BUT IT'S JUST WHEN DEEPSEEK CAN PROCESS AND CRUNCH THE DATA OF AUTONOMOUS DRIVING IN A MUCH QUICKER FASHION. IS THAT KIND OF POWER IN THE CLOUD THAT WILL GIVE BYD THAT BIGGER EDGE WHEN IT

COMES TO ITS DRIVERS BEING ABLE TO DELIVER BETTER RESULTS WHEN IT COMES TO THE USE OF THEIR CAR IN THE HOPE IS TO DELIVER SAFER, BETTER DRIVING EXPERIENCES. REBECCA: BLOOMBERG'S TRANSPORT REPORTER THERE. STAY WITH US, YOU ARE WATCHING THE CHINA SHOW. THIS IS BLOOMBERG. ♪ REBECCA: YOU'RE WALKING -- WATCHING THE CHINA SHOW. A QUICK CHECK ON CORPORATE STORIES WE ARE FOLLOWING. TSMC IS EXPECTING FIRST QUARTER SALES TO BE AT THE LOWER END OF ITS FORECAST RANGE DUE TO PRODUCTION OFFICE FROM LAST MONTHS OR EARTHQUAKES. THE TAIWANESE CHIPMAKERS SAID IT WAS 160 MILLION DOLLARS. TSMC IS

MAINTAINING HIS FIRST QUARTER GROWTH PROFIT MARGIN FORECAST AND FOR YOUR OUTLOOK WITH REVENUE GUIDANCE OF UP TO NEARLY $26 BILLION. A GROUP OF INVESTORS LED BY ELON MUSK HAS OFFERED TO BUY THE NONPROFIT THAT CONTROLS OPENAI FOR 97 POINT $4 BILLION. IN A STATEMENT MUSK SAYS HE HOPES TO RETURN OPENAI SO THAT OPEN SOURCE FEET -- SAFETY FOCUS FORCES THE GOOD IT ONCE DID. SAM ALTMAN REJECTED THE BID USING A POST ON MUSK'S EX PLATFORM TO SAY, NO THANK YOU. ANNABELLE: THE FRENCH FINANCE MINISTER SAYS FRANCE WILL KEEP A DIGITAL TAX THAT HITS MAJOR U.S.

TECH FIRMS DESPITE TARIFF RETALIATION FROM PRESIDENT TRUMP. HE TOLD US EXCLUSIVELY ABOUT EUROPE'S STANCE ON TRADE WITH WASHINGTON. >> PRESIDENT TRUMP IS A DEALMAKER, SO EUROPE WILL ANSWER. AS FAR AS THE POSITION OF THE UNITED STATES, EITHER WE HAVE OUR OWN -- OR WE NEGOTIATE UNTIL WE ARE PREPARING. >> EUROPE ALREADY HAS RECIPROCAL TARIFFS IN PLACE OF U.S. STEEL FROM THE PREVIOUS TRADE CONFLICT. THEY ARE NOW FROZEN. THEY COULD BE UNFROZEN IN MARCH, IS THAT AN EASY RESPONSE FOR EUROPE TO GO THROUGH TO UNFREEZE THOSE RECIPROCAL TARIFFS AND LET THEM SNAP BACK IN? >> WE

WILL NOTE THE GAMES ANSWER BEFORE WE HAVE THE OFFICIAL ANSWER FROM EUROPE. TOM: HOW MUCH PAIN IS YOU'RE PREPARED TO INFLICT ON THE U.S.? >> WE ARE PREPARED TO DO WHATEVER IS NECESSARY. WE HAVE THE SAME TOOLS AND WE WILL USE THEM. >> WEEK COULD ASSUME THE EUROPEAN COMMISSION HAS A LIST OF TARIFFS THEY WOULD ENACT ON. TOM: PRESIDENT TRUMP HAS ASKED FOR A PROBE INTO TAXES, GLOBALLY AND IT OVER WOMANLY IMPACTS U.S. TECH COMPANIES THAT BRING IN 500 TO 700. COULD YOU AND FRANCE CONSIDER DROPPING THAT DIGITAL TAX IN ORDER TO AVOID A TRADE

WAR? >> THE TAX ISSUE IS THE TRADE WAR, BUT WE PUT THE ATTACKS ON THE COMPANY AND ITS WE WILL SEE THAT IT COMES INTO ANOTHER TIME OF THE UNITED STATES, EVERY COUNTRY HAS ITS OWN TAXES AND WHO WILL STICK TO THAT. AT: VOCAL AND THAT'S THE FRENCH PRIME MINISTER, A QUICK CHECK ON THE MOVERS STICKING WITH THAT AI THEME, WE ARE TRACKING THEMES THIS MORNING, THE CHINESE AI DEVELOPERS THAT IT HAS INTEGRATED DEEPSEEK INTO ITS LATEST REASONING. IT WAS A LITTLE BIT UNDER PRESSURE. GOLD STOCKS BECAUSE WE HAVE SEEN GO HITTING A FIRST RECORD

HIGH. AND THE IMPACT ON THE TEAR FOR >> VERY IMPRESSIVE MODEL AN IMPRESSIVE PIECE OF WORK. THE TEAM IS THE BEST TEAM I'VE SEEN COME OUT OF CHINA. I THINK A LOT OF TRAINING -- CLAIMS ARE EXAGGERATED AND MISLEADING. >> THE KEY THEMES OF DEEPSEEK ARE REDUCING THE COSTS OF INNOVATION IN RAISING THIS QUESTION ON DATA CONTROL. >> YOU HAVE MORE CONSTRAINED RESOURCES. THEN STOP THINKING ABOUT WHAT YOU DO INITIALLY. >> THERE IS A GLOBAL COMPETITION RIGHT NOW. IT'S A DEMOCRATIC AI RAILS OR AUTHORITARIAN AUTOCRATIC AI RAILS. REBECCA: SOME OF OUR GUESTS AT THE AI

ACTION SPEAKING ABOUT POTENTIAL IMPACT OF CHINA'S DEEPSEEK. THE FOUNDER COULD BECOME ONE OF THE RICHEST PEOPLE IN THE WORLD THINKS THAT HIS INTEREST IN HIS AI STARTER. BLOOMBERG'S WEALTH REPORTER DIANA LEE HAS MORE. WE DO HAVE THIS VERY WIDE RANGE OF ESTIMATES FOR THE VALUATION OF THE COMPANY. WHY DO WE HAVE THIS ENORMOUS RANGE AND WHAT ARE THE RATIONALES? >> I WOULD SAY IT'S REALLY OF AN ART THAN SCIENCE AT THIS POINT BECAUSE BLOOMBERG REACH OUT A COUPLE OF VENTURE CAPITALISTS AND TECH FOUNDERS AND THEY COME BACK WITH A WIDE RANGE. WE HAVE ESTIMATES FROM

BILLION TO 150 BILLION DOLLARS. THAT'S BECAUSE DIFFERENT PEOPLE SEE DIFFERENT ESTIMATES AND POTENTIALS OF DEEPSEEK'S AND WE SEE SOME PEOPLE COMPARE IT WITH CHATGPT OF OPENAI WHICH WAS VALUED AROUND $300 BILLION IN THEY ARGUE THAT DEEPSEEK COULD BE WORTH AT LEAST HALF OF THAT. WE ALSO HAVE OTHER COMPARABLES LIKE -- AI THAT WAS VALUED AROUND $6 BILLION. WE TAKE ALL OF THAT INTO CONSIDERATION AND WE KNOW THAT THE COFOUNDER HELD ABOUT 84% OF THE STAKE OF DEEPSEEK AND THAT COULD VALUE HIM AS RICH AS 126 BILLION THAT'S ALMOST THE SAME LEVEL AS NVIDIA'S JENSEN HUANG.

ANNABELLE: THEY WERE PUBLIC FACES FOR THOSE AI COMPANIES. IN IS THAT ONE OF THE ISSUES? PERHAPS A LEVEL OF SECRECY THAT IS WHAT MAKES VALUE IT SO DIFFICULT. >> IT'S PRETTY DIFFICULT BECAUSE IT'S A PRIVATE COMPANY INTERNALLY FOUNDED BY THE CHINESE QUANTITATIVE HEDGE FUND HIGH FLYER. WE HAVE VERY LIMITED INFORMATION ON ITS CAPITALIZATION AND ITS REVENUE DATA, ITS OPERATING PROFIT, ETC.. ALSO, WE HAVE TO CONSIDER THAT DEEPSEEK IS IN OPEN-SOURCE MODEL, SO THE MONETIZATION HAS SOME CHALLENGES OVER THERE. ALSO SOME AMERICAN ENTERPRISES MIGHT BE CONCERNED OF USING DEEPSEEK BECAUSE OF ALL THESE NATIONAL SECURITY CONCERNS

AND ALL OF THAT MIGHT IMPACT DEEPSEEK'S VALUATION AS WELL. ON THE OTHER HAND, IF WE DO SEE A STRATEGIC CHINESE INVESTOR INTO DEEPSEEK, SUCH AS WE'VE SEEN IN MICROSOFT AND OPENAI, THAT WOULD MAKE IT A TOTALLY DIFFERENT STORY. REBECCA: THIS IS A FOUNDER THAT FOR SOME PEOPLE REALLY CAME OUT OF NOWHERE. SICK PEOPLE BY SURPRISE. TELL US WHAT WE DO KNOW ABOUT HIM AND WHY HE SORT OF SEEMS TO STAY OUT OF THE PUBLIC EYE? >> IT'S AN INTERESTING BACK STORY AND IT STARTED WITH THE QUANTITATIVE HEDGE FUND AND TWO OF HIS COLLEGE CLASSMATES STARTED

TRADING CHINESE DOMESTIC STOCKS BACK IN 2000 EIGHT. INTERESTINGLY THEY DON'T REALLY HAVE MANY OVERSEAS EXPERIENCES OR INSTITUTIONAL TRADING EXPERIENCES LIKE MANY OTHER QUANTITATIVE HEDGE FUNDS. IN 2023 THEY DECIDED TO USE THE HEDGE R&D BUDGET TO TRY OUT WITH DEEPSEEK. IT WAS REALLY A SMALL GROUP OF YOUNG, CHINESE ENGINEERING GRADUATES AND MOST OF THEM HAVEN'T WORKED OR STUDIED OUTSIDE OF MAINLAND CHINA. SO IT'S PRETTY IMPRESSIVE HOW THEY PULLED OFF SUCH AN IMPRESSIVE PRODUCT OVER THERE. ANNABELLE: THAT WAS OUR BLOOMBERG WEALTH REPORTER DIANA LEE TALKING ABOUT HOW THE DEEPSEEK FOUNDER COULD BECOME ONE OF THE RICHEST MEN

IN THE WORLD. YOU THINK ABOUT WHO'S THE RICHEST. WE KNOW OF COURSE TO THAT IS, IT'S ELON MUSK. BUT WHAT'S INTERESTING IS FOR THE FIRST TIME IN 2025, WE ARE IN THE EARLY INNINGS OF THE YEAR, BUT FOR THE FIRST TIME THIS NET WEALTH HAS SLIPPED. IT'S BELOW $400 BILLION. IT'S STILL A LOT IN HIS COFFERS. BUT WE HAVE SEEN A BIT OF A SLIDE AND THAT REALLY RELATES TO WHAT WE SEE IN TESLA STOCK. IT DOWN NEARLY 30% SINCE IT HIT AN ALL-TIME HIGH IN DECEMBER. THE OPTIMISM OF THE MUSK-TRUMP RELATIONSHIP PLAYING INTO THAT

AND THE LEVEL OF COMPETITION THAT TESLA FACES NOT ONLY WEAKER SALES IN PLACES LIKE GERMANY BUT WHAT ABOUT WHAT'S HAPPENING IN CHINA AND THE COMPETITION WITH BYD? REBECCA: UID IS REFLECTED IN THE STOCKS, THAT NON-BYD AUTO NAMES ARE UNDER PRESSURE. WE HAD THEM UNDERSCORING JUST HOW DIFFICULT IT'S GOING TO BE FOR THESE OTHER NAMES TO CATCH UP WITH BYD. IT HAS HAD SUCH AN ADVANTAGE IN IS THIS OSTENTATIOUS PUBLIC SHOWED TO INTEGRATE ALL OF THE NEW AUTONOMOUS ASSISTED DRIVING TECHNOLOGY INTO EVERY SINGLE ONE OF ITS VEHICLES. ANNABELLE: JUST ICKY ABOUT THE LEVEL OF INNOVATION GOES

BACK TO WHAT WE WERE SPEAKING ABOUT WITH BNP PARIBAS AND THE AMOUNT OF INNOVATION COMING OUT FROM CHINA AS WELL. YOU SEE THAT REFLECTED IN THE INVESTMENT FLOWS. PARTICULARLY ONE OF THE MOST READ TODAY, THE BILLIONAIRE INVESTOR WHO HAS BEEN RAMPING UP . IF YOU THINK BACK TO SEPTEMBER HE WAS FAMOUSLY QUOTED AS SAYING, BUY EVERYTHING RELATED TO CHINA. YOU COULD SEE HE LIFTED HIS STAKE IN JD.COM, ALIBABA. BUT HE SAW HIM CONTINUING TO ADD THROUGH ETF'S. REBECCA: HE'S INCREASED HIS STAKE AT 43%. ALIBABA GREW BY 80% LAST QUARTER. BEFORE WE SAW THIS RALLY IN

DEEPSEEK, HELPING TO BOOST MARKETS. AT ABOUT: THE BIG STORY WITH MUSKA TODAY IS THE BID TO BUY OPENAI IN A CONSORTIUM BUT ALSO RELATED TO OPENAI AND THAT FURTHER INTEGRATION AND PROLIFERATION OF THE AI PLATFORM , SOFTBANK HAS BEEN CLOSELY LINKED TO THE EFFORT LOOKING AT A TECHNIQUE CALLED PROJECT FINANCING TO PAY FOR PROJECT STARGATE ALONGSIDE OPENAI, ORACLE. THE LET'S GET MORE WITH OUR TECH REPORTER. THAT HAS BEEN ONE OF THE KEY QUESTIONS. SOFTBANK MADE THIS BIG INVESTMENT PLEDGE BUT WE DIDN'T KNOW HOW THEY WOULD GO ABOUT FINANCING IT. WHAT DO WE KNOW NOW? >>

EXPLAINING PROJECT FINANCING AS A MODEL IN A STRUCTURE THEY ARE EXPLORING RIGHT NOW. AND THE REASON WHY WE SEE SO MANY DIFFERENT MEDIA REPORTS OUT THERE BY 15 BILLION INVESTMENTS, 19 BILLION, 25 IS BECAUSE A LOT OF THIS IS STILL A IN DISCUSSION AND NONE OF THIS HAS BEEN DECIDED YET, BUT I THINK IT'S BEST TO TRY TO UNDERSTAND THE ENTIRE STRUCTURE GIVES IT SUCH A HUGE SUM OF MONEY. THE WAY WE UNDERSTAND IT BASED ON THE REPORTING IS OUT OF THE $500 BILLION ASSUMING THAT THAT FIGURE IS REACHED, WE UNDERSTAND 10% OF THAT WOULD

BE RAISED THROUGH EQUITY. THAT IS ONE SCENARIO. THAT MEANS THE REMAINING SUM OF 90% WOULD BE A COMBINATION OF OTHER PREFERRED EQUITY AND DEBT. SEEING LOAN AND MEZZANINE DEBT. WITHIN THAT 10% EQUITY PORTION I THINK DISCUSSIONS REMAIN ON HOW THE SPLIT WOULD BE AMONG THE EQUITY PARTNERS SOFTBANK, OPENAI ARE MG X AND ALL OF THIS HAS TO BE DECIDED GOING FORWARD. REBECCA: TO WHAT EXTENT ARE THESE OTHER DEVELOPMENTS ELSEWHERE IN THIS OTHER INDUSTRY? FOR EXAMPLE, THE DEVELOPMENT OF DEEPSEEK AS WELL AS THE UNSOLICITED. WE'VE SEEN FOR ELON MUSK, FOR OPENAI, HOW MUCH OF THESE OTHER

THINGS ARE PLAYING INTO THE DECISIONS WHEN WE LOOK AT THIS POTENTIAL DEAL? >> I THINK IT MAKES THE CURRENT SITUATION MORE DIFFICULT. THE FINANCING STRUCTURE IS VERY COMPLEX AS IT IS, EVEN FOR THE PEOPLE TRYING TO FIGURE OUT INSIDE SOFTBANK AND WITH DEEPSEEK PEOPLE THINK THE COST STRUCTURE COULD CHANGE FOR AI IN ALL OF THIS, WHERE IS THE ONGOING RISK BETWEEN ELON AND SAM AND ALL OF THIS TALK ABOUT OPENAI VALUATION AND FUNDING IS PLAYING INTO WHAT WOULD BE AND COULD BE THE BEST WAY TO FUND THE STARGATE PROJECT AND ALSO ALL THIS TALK ABOUT

A POTENTIAL FUNDING ROUND FOR OPENAI AND THE MATH BETWEEN THE FUNDING ROUND FOR OPENAI AND THE FINANCING FOR STARGATE PROJECT IS KITING THAT'S KIND OF BEING DISCUSSED WITH THIS, WHICH IS ANOTHER BIG VARIABLE INTO HOW THE FINANCING STRUCTURE WILL ULTIMATELY LOOK LIKE IN THE END, SO THERE'S A LOT MORE QUESTIONS TO BE ASKED AND ANSWERED. REBECCA: BLOOMBERG TECHNOLOGY REPORTER. COMING UP, ALSO ON THE CHINA SHOW, THE CEO OF AUSTRALIAN BIOTECH GIANT JOINS US FOR AN EXCLUSIVE CONVERSATION ON THE COMPANY'S FIRST HALF PROFIT MINUTES. AND THE OUTLOOK ON TRADE AND GEOPOLITICAL TENSION. STAY WITH US, YOU

ARE WATCHING THE CHINA SHOW. IN A VOCAL AND TAKING A LOOK AT THE AUSSIE MINERS IN THE SESSION AND THESE ARE UNDER PRESSURE. OF COURSE THESE WOULD BE A VERY BIG CASUALTY IF DONALD TRUMP DOES FOLLOW THROUGH WITH THOSE TARIFFS ARE PLANNED TARIFFS ON STEEL, ALUMINUM IMPORTS, THE AUSTRALIAN PRIME MINISTER THIS MORNING SAYING THAT HE HAD HAD A VERY PRODUCTIVE CONVERSATION WITH PRESIDENT TRUMP WHERE HE SAID THAT THEY HAD AGREED THAT AT LEAST THERE WOULD BE SOME CONSIDERATION FOR INCEPTION. PRESIDENT TRUMP NODDED TO THAT BUT SAID THIS IS GOING TO BE A BROAD-BASED LEVY THAT

IS ADDED. PUT SHARES OF THE AUSTRALIAN BIOTECH COMPANY FELL UNDER PRESSURE TODAY. AFTER IT REPORTED AN UNDERLYING PROBLEM FOR THE FIRST HALF OF JUST OVER 2 BILLION U.S. DOLLARS. THAT WAS UNDER THE AVERAGE ANALYST ESTIMATE DRIVEN BY WEAKER ESTIMATE. LET'S GET MORE WITH OUR ASIA TRADE CO. ANCHOR HAIDI STROUD-WATTS IN SYDNEY. HEIDI: JOINING US IS PAUL MCKENZIE. REALLY GREAT TO HAVE YOU WITH US. I WANTED TO START OFF ON YOUR OPTIMISM THAT THE COMPANY CAN GET TO DOUBLE DIGIT GROWTH IN THE MEDIUM TERM. CAN YOU TELL US ABOUT THE STRATEGY TO IMPROVE UPTICK IN HOW

YOU PLAN TO MAKE THAT OUTLOOK COME TO FRUITION? >> GREAT TO BE HERE, THANKS FOR HOSTING US AND PLAN TO TALK ABOUT THIS ON OUR JOURNEY. WE ARE VERY DIVERSIFIED COMPANY HAVING THREE MAJOR BUSINESS COMPANIES. THOSE COMPANIES ARE PERFORMING VERY WELL, THAT'S WHY WE CAN REAFFIRM OUR EARNINGS. WE HAD SOME HEADWINDS IN THE FIRST HALF, OUR VACCINE BUSINESS, BUT THAT WOULD BE OFFSET IN THE SECOND HALF WHERE WE ARE ABLE TO SUPPLY THE MAJORITY OF THE WORLD'S PANDEMIC NEEDS FOR AVIAN FLU. SO IT'S REALLY A TINY ISSUE THAT YOU ARE SEEING VERSUS ANYTHING IN THE

FUNDAMENTALS OF OUR OVERALL BUSINESS MODELS, THE BEARING BUSINESS AND OUR RETURN TO GROWTH MARGINS, REVENUE GROWTH AND GROWTH MARGIN EXPANSION ARE GOING WELL. OUR VIEW FOR BUSINESS, WHICH WE ACQUIRED A FEW YEARS BACK, IS CONTINUING TO MAKE A HUGE DIFFERENCE AROUND THE WORLD IN BOTH IRON DEFICIENCY IN NEPHROLOGY. WE ARE CONFIDENT THAT WE WILL DELIVER DOUBLE DIGIT EARNINGS GROWTH. REBECCA: I WANT TO ASK ABOUT THAT FOR PERCENT R&D GROWTH DROPPED. WHERE DO YOU SEE THIS THE STATION OF PROGRAMS AND HOW DOES THAT REFLECT PRIORITIES? QUAKES AT THE TIMING MATTER. WE HAD A LARGE TRIAL THAT

ENDED THIS LAST QUARTER AND OBVIOUSLY THE EXPENSE DOES NOT CONTINUE. THAT'S REALLY A REFLECTION, LAST YEAR THE TRIAL IS IN FULL STEAM AND THE -- WAS MUCH HIGHER. WE DON'T ONENESS -- RUN A SIX MONTH BY SIX MONTH BUSINESS. WE ARE LONG-TERM COUNTRY -- COMPANY WITH A LONG-TERM HISTORY OF DELIVERING HIGH DOUBLE DIGIT EARNINGS. 10%-15% EARNINGS. >> CAN YOU TELL US ABOUT HOW MUCH OF A DROP IN DEMAND YOU SAW AND WHETHER THAT IS EXPECTED TO CONTINUE? QUAKES IF YOU LOOK AT THE OVERALL MARKET IT TO 10% REDUCTION WHEN YOU LOOK AT THE COMPETITORS IN

OURSELVES AND OURSELVES IN PREDICTING VACCINATION RATES IS SOMETHING THAT IS HARD TO DO. THERE'S A MIX OF THINGS THAT ARE OCCURRING BOTH FROM A CONSUMER APATHY AND FROM A SEGMENT CHANGE, SO WE LOOK FORWARD TO CONTINUE TO EDUCATE AND MAKE SURE PEOPLE ARE AWARE OF THE BENEFIT FOR PUBLIC HEALTH OF THE VACCINE MARKET. THIS YEAR'S FLU IS GOING TO BE ONE OF THE WORST FLU SEASONS IN THE NORTHERN HEMISPHERE AND IT'S EXTREMELY IMPORTANT THAT PEOPLE GET VACCINATED. WE SAW IN THE U.S. IN PARTICULAR, THE 18, THE 64 AGE COHORT HAS THE BIGGEST REDUCTION OF VACCINATION

RATES. AROUND THE WORLD, WHILE MOST REGIONS HAVE RETURNED TO THEIR VACCINATION RATES PRE-COVID. WE THINK THAT THERE'S REAL GOOD REASONS TO BELIEVE THAT WE WILL SEE THAT IN THE U.S. OVER TIME, EXACTLY WHEN THAT WILL BE, WE'LL SEE. >> ROBERT F. KENNEDY, JR. IS CLOSING IN ON THAT CONFIRMATION FOR HEALTH SECRETARY AND HE HAS BEEN IN ABOUT VACCINE SKEPTIC. HOW DO YOU COUNTER THAT, IF THAT IS THE BROAD GOVERNMENT MOOD WHEN IT COMES TO APPETITE AND TRUST IN VACCINES? >> WE ARE A GLOBAL COMPANY WE WORK IN 104 DIFFERENT COUNTRIES. WE WORK ALL AROUND THE

WORLD. WE PROVIDE THE RIGHT SCIENTIFIC DATA, WE MAKE SURE PEOPLE HAVE THE FACTS. IN THAT CASE, HIS REQUEST IS MORE TRANSPARENT ON THE DATA AND WE ARE GLAD TO HAVE THAT CONVERSATION. WE HAVE THE BENEFITS THAT SHOW THE DATA OF THE HEALTH CARE SYSTEM IN THE PUBLIC HEALTH BENEFIT FROM FLU VACCINES. WE'VE MONETIZED AND CAN RESPOND TO NEEDS BOTH FROM A SEASONAL VIEW AND PEN TO MAKE VIEW AROUND THE WORLD. >> HE SPOKE ABOUT THE AVIAN FLU VACCINE AND HE CERTAINLY SPOKE ABOUT CONTRACTS WITH THE NUMBER OF GOVERNMENTS AROUND THE WORLD, CAN YOU GIVE US

AN IDEA OF HOW MUCH DEMAND THERE IS AN THE LEVEL OF PREPAREDNESS. >> I WOULDN'T WANT TO GET INTO EACH GOVERNMENT IN ORDER. WE ARE PREPARING TO PROVIDE THE GOVERNMENTS WHAT THEY NEED IN THE CONTRACTS VARY IN TERMS OF WHETHER THEY WANT FINISHED DOSES OR JUST THE ANTIGEN OR RESERVATION TO MAKE SURE THAT IF THE PANDEMIC HAPPENED WE WOULD BE READY AND HAVE THE APPROPRIATE CAPACITY. THE AVIAN FLU IS A SERIOUS ISSUE RIGHT NOW. WE ARE GLAD TO BRING A SOLUTION FOR THE GLOBAL MARKETPLACE. >> IF THERE WAS ANOTHER PANDEMIC, HOW QUICKLY COULD YOU DEPLOYED

TO SCALE? >> TYPICALLY, DEPENDING ON THE ACTUAL VIRUS ITSELF, OUR GOAL IS TO DEPLOY IN LESS THAN 16 WEEKS. QUAKES I WANT TO ASK ABOUT THE IRON INFUSIONS, WHAT YOU THINK THE OUTLOOK IN THE EUROPEAN MARKET WHERE WE ARE EXPECTING THAT GENERIC TO BE INTRODUCED? >> IT'S WHAT WE EXPECTED. WE BROUGHT ON A LOT OF SKILLS THAT'S A FEW YEARS BACK. WHO KNOW THAT BUSINESS VERY WELL IN A GENERIC MARKETPLACE. WE HAVE SEEN VOLUME GROWTH. WE HAVE GROWN 6% ON VOLUME BUT THE TYPICAL GENERIC PROFILE FOR A SPECIAL MADE MEDICINE IS AROUND 15%-20% PRICE DEPRECIATION.

THAT'S WHAT WE'VE SEEN. OUR GOAL IS TO WIN THE VOLUME AND TO EXPAND IN OUR GEOGRAPHIC MARKETPLACE. WE'VE EXPANDED INTO CHINA, INTO CANADA AND THAT'S A SECRET TO MAKE SURE WE ARE GEOGRAPHICALLY LEANING FOR A. REBECCA: WHAT ABOUT -- >> WHAT ABOUT THE GEOGRAPHIC FOOTPRINT? >> WE HAVE STRENGTH AROUND THE WORLD. WE LOOK AT THE GLOBAL FOOTPRINT FROM A MANUFACTURING VIEWPOINT. WE HAVE LARGE INVESTMENTS HERE IN MELBOURNE, AUSTRALIA AND SIGNIFICANT INVESTMENTS IN THE U.S. AND CODING ARE PLASMA CENTERS THAT ARE DISTRIBUTED THERE. WE GREW 15% AROUND THE GLOBE FOR THIS PAST HALF, WHICH IS TREMENDOUS.

IT'S A SPECIFIC AND UNMET NEED IN PRIMARY DEFICIENCY AND SECONDARY DEFICIENCY. WE ARE GLAD TO BE ABLE TO PROVIDE BOTH INTRAVENOUS AND -- SOLUTIONS FOR PATIENTS AROUND THE GLOBE. IT HAS BEEN A STRONG BOTH VOLUME AND U.S. AS WELL AS THE WET -- AS WELL AS THE REST OF THE WORLD. >> YOU TALKED ABOUT HAVING SUCH A GLOBAL GEOGRAPHIC FOOTPRINT, HAVE YOU DONE A RISK ASSESSMENT IN TERMS OF TRADE TENSIONS AND TARIFFS ARE IN YOUR TRADE WAR WOULD AFFECT THE SUPPLY CHAIN OPERATIONS? >> THE GOOD THING ABOUT BEING A GLOBAL COMPANY AS WE CAN MODEL

SCENARIOS. IT'S A VERY FLUENT TIME, SO WHAT EXACTLY WE NEED TO DO WE WILL SEE, SO WE HAVE THE FLEXIBILITY WITH OUR PRODUCT MIX IN OUR GLOBAL SUPPLY CHAIN TO ADJUST AS NEEDED TO MAKE SURE WE GIVE MEDICINES TO PATIENTS THAT NEED IT AND WE MAKE SURE THE BUSINESS IS PROFITABLE FOR OUR SHAREHOLDERS. >> WE ARE OBVIOUSLY GETTING CLOSER TO A FEDERAL ELECTION HERE IN AUSTRALIA, IS THERE ONE CHANGE YOU WOULD WANT TO SEE POLICY WISE FROM EITHER OF THE MAJOR PARTIES, WHOEVER'S IN GOVERNMENT AFTER THE ELECTION THAT'S MOST IMPORTANT TO YOUR BUSINESS? >> I

WOULD SAY THIS IS THE SAME COMMENTS WE HAVE EVERYWHERE AROUND THE WORLD WHERE WE ARE LOOKING FOR GOVERNMENTS TO INVEST IN EDUCATION AND MAKING SURE ACCESS TO THAT SCIENTIFIC SKILL SET IS AVAILABLE THROUGH THE RIGHT CHANNELS. SO WE RELY ON EXPERTISE AND TALENT AND OBVIOUSLY BEING ABLE TO GROW THAT TALENT AND ACCESS THAT TALENT AROUND THE WORLD IS IMPORTANT TO US. >> REALLY APPRECIATE YOUR TIME WITH US TODAY. THE CEO MANAGING DIRECTOR AT CSL, ONE OF THE STOCKS WE ARE WATCHING TODAY. REBECCA: IF YOU'RE A BLOOMBERG SUBSCRIBER YOU COULD CATCH UP ON ALL OF OUR

INTERVIEWS BY USING OUR INTERACTIVE FUNCTION TV <GO>. YOU COULD JOIN THE CONVERSATION BY SENDING INTERACTIVE MESSAGES TO OUR TEAM AND GUESTS. YOU ARE WATCHING THE CHINA SHOW. THIS IS BLOOMBERG. ANABEL: WE ARE NEARLY 90 MINUTES INTO THE SESSION. WE SEE HANG SENG GIVING UP ITS GAINS. WE ACTUALLY HAD THE PICTURES POINTING TO A SLIGHT ADVANCE BUT WE ARE UNDER PRESSURE SO FAR TODAY AND THERE'S A COUPLE OF OTHER REASONS THAT ARE PLAYING INTO THIS. YES, WE HAD THE OPTIMISM ARE BYD. IT'S GOING TO BE INTEGRATING SELF-DRIVING CAPABILITIES. ALL OF THE STOCKS ARE SIGNIFICANTLY IN THE

RED TODAY. REBECCA: IT'S AROUND 9%. WE SEE IT TAKING A BIT OF A HIT STRUGGLING TODAY. THAT'S DESPITE THEM COMING OUT TO BRING MORE SUPPORT OF CONSUMERS AND CONSUMPTION SECTOR. AND OF COURSE WE ARE WAITING TO SEE WHETHER OR NOT SUBSTANTIALLY MORE COMES FROM BEIJING ON THE NPC LATER THIS MONTH. ANNABELLE : YOU HAVE EVERY SECTOR IN THE RED. THE ONLY ONE OUT TODAY IS REAL ESTATE. THE BIG STORY IS TRUMP TARIFFS AND WE HAVE PRESIDENT TRUMP IN THE LAST COUPLE OF HOURS SIGNING A SERIES OF EXECUTIVE ORDERS BUT HE IS FIRMLY TARGETING IMPORTS OF

STEEL, ALUMINUM. HE WANTS TO CLOSE WHAT HE WOULD SAY ARE LOOPHOLES TO THE LIKES OF RUSSIA AND CHINA ARE EXPORTING. THAT'S EXPLOITING. REBECCA: SOME DISCUSSION NOW. THE PRIME MINISTER SAYING THERE MIGHT BE IN TRUMP NODDING TO THAT. ANNABELLE: WE HAVE INSIGHT WITH HASLINDA AMIN. STAY WITH US. THIS IS BLOOMBERG.