we are counting down to asia's major market opens, and haidi, setting up for some neutered trading open. it certainly seems like we will get a bit of red across the screen today. haidi: maybe a continuation of the u.s. equity investors, of how much this rally has gone and a bit of a pullback. we also have caution in australia ahead of monthly cpi data. we could see an uptick. it tends to be a volatile data series. certainly, we could see some repricing ahead of rba expectations of the timeline towards easing. annabelle: it is that over all narrative, higher-for-longer, for australia at least. we have got japan and south korea coming online. this is what we're seeing so far, the nikkei 225 opening fairly flat. with kospi, a few seconds until we see live pricing.

some sectors in focus today, what we have been seeing in the tech area, electrical appliances, tech-related in japan moving flat today. we saw losses through in nvidia overnight and other big tech names. couple of different data points to note, the australia cpi. we have february industrial profits do from china, perhaps we will continue to see bottoming out in the economic woes for their country. the kospi, 0.4% of the downside. it is that focus, as well and other stories in the session, and front and center is what is happening in baltimore, heidi. haidi: yes, as we continue to look for more details to exactly what happened and the recovery effort, a recovery effort that is underway. we heard from the coast guard saying that the end of the search and rescue operation for

the six remaining people that were unaccounted for under the francis scott key bridge collapsed. we heard from officials say that they don't believe that this point that those individuals will be found still alive. let's get the latest with our abc news reporter christiane cordero joining us live. there is a shift in the recovery . iteris about the conditions that rescue workers are working with at the moment. christiane: at first it was the darkness, right, this happened at 1:30 a.m. local time in baltimore. mm that was coupled with the freezing temperatures, the water temperature at the time was 47 degrees and it's stayed cold throughout the day, 47 degrees fahrenheit. that is what they cited when they said one of the reasons why they were calling off the search at 7:30 local time, just a half an hour ago. not what people who were holding out hope, were hoping to end the day with, but that is, as you

mentioned, what is necessary in order to transition to the next phase where they pick up tomorrow, presumably, in the recovery phase. annabelle: and as we know, there are a number of people still missing and not found as of yet. but the consequences of this also stretch to other corners, including the industry, given the importance of this area and this port. christiane: it is one of the busiest ports in the mid-atlantic, and really an essential piece of the region. especially within the summative and coal industries. for context, 850,000 cars and small trucks traveled through this port last year alone and that does create a shift, if you will, on where those goods now have to go as they make this port accessible. based on our reporting with abc news, there are other ports nearby that can take that load.

the estimate it will be a 10% increase which, of course, this time of year is potentially one factor as to why this is doable. they don't expect a widespread disruption, if you will, more of an adjustment. haidi: we will know more in the days and weeks to come, i am sure but do we have any inkling as to what actually happened? we know there was a mayday call that was put out by the ship. christiane: we have pieces of what happened. we have the logistical timeline around 1:30 a.m. local time, as i mentioned, there was a mayday call. the captain saying they lost control of the ship. when they sent the call out, it was amazing how that finite amount of time, that very sensitive amount of time, they were able to respond and shut off traffic on the bridge itself. that potentially saved lives. because there were no cars that were traveling on the bridge at the time but collapsed.

but because they lost control, that is when the ship ended up hitting a column and collapsed. it is a big bridge, about two kilometers long. annabelle: certainly seems like it could have been even a lot worse. that is abc news reporter christiane cordero in baltimore. let's shift talked a bit here because we're just getting into the morning session. couple of things standing out, firstly, very muted gains so far, tracking what we saw in the u.s. overnight. volumes are off the 200 day moving averages. perhaps a question of what is next -- the next catalyst for markets. next is goldman sachs co-head of market research, timothy moore. we are talking to people at the moment, what will be the big driver in the second quarter? tim: we're just finishing the first quarter and there is a few things we can mention about that

in terms of the dispersion of returns. but looking forward, the key areas we investors will be focusing on will be five main factors. number one, obvious but important, is the fed and the prospect of the start of a cutting cycle and we think that will be amplified -- pretty much every central bank in asia will be embarking on a culling cycle, of course excluding the bank of japan. rates is number one. number two, geopolitics. the u.s. election is getting in gear and there will likely be some increase in geopolitical noise. we have two other important elections, one in india and one in korea. third is earnings. fourth would be various policy specific issues, i would north korea has a catalyst coming up with its program. and last, it sounds like market voodoo, but seasonality is really important. we see typically across-the-board good start to

the second quarter in april, but then, may tends to be a tough month and then june is flat. so it will be the negative seasonality force versus the expectation of the start of a fed culling cycle, that would be a very interesting dynamic to think about. annabelle: when i think about that, as well i think about market expectations, so much priced and around the expectation that we will see cuts. we have seen signals that information could be an applicant or staying sticky. tim: excellent point. in the report we wrote, we included not only how markets tend to trade after the first side cut, but it is a fed cut while we think the economy is still going well. that tends to be good for us markets in asia. so the set up is a good one. but if you impose valuations as well, you see markets like taiwan and india trading two standard deviations above their long-term averages. that is not totally because of interest rates. it just says that markets are

well-priced and may not respond as they have done in the past. haidi: australia is one of those markets that is looking pretty overextended, right, after the rebound last october. is this another markets one of the instances you think would be vulnerable to a pullback, therefore, it may be underweight ? tim: absolutely, the answer is yes, it could do that. we are also underweight. frankly, roastery has been a bit of a puzzle, not just us, but a number of investors we have in speaking to. earnings growth this year is affected to be 1%, last year earnings growth was not that much either. the market is trading well above a standard deviation higher than its normal range. so a lot of people think the asx 200 may hit an all-time high in the first quarter and i think people are sold by that. so i think if there is some disappointment on the rates side, that would be one market that could do for correction.

we are underweight. haidi: how long can japan continue units goldilocks bubble. it was almost a master class from the bank of japan in terms of how it massaged the p ivot. do you see the expectation of weakness in the yen, the equity market continuing to forge ahead, does that continue? tim: bottom line is yes. we just published our report on this just yesterday, the dynamic here, as i ensure you are aware, to emphasize it, is the bottom up improvement in corporate activity driven by the tokyo stock exchange, a team that has been driving the market and that we think will continue. there are additional headwinds in terms of the weakening of the year. we have a definition raise --

darvish -- we had a dovish rai se. expectations in the u.s. have come down a bit in terms of the magnitude of rate cuts. the boj was perhaps less emphatic in terms of its forward expect patients relative to what the market was looking for. it means that the absolute spread in rates between the u.s. and japan will remain wide. therefore, people sold the japanese yen as a funding currency. it popped above 150. -hour mark team has adjusted an forecast and we are looking at 155, 145 -- 3, 6, 12-month view. that is giving a bit of a tailwind to the market. every ¥10 move is typically a 3% or 5% improvement in earnings. let's call it five yen higher on the jpy, that would suggest 1% or 2% upside in the earnings forecast. all of that combined with the overall dynamic of bottom-up

corporate change, is the driver for the market. last thing, there may be some profit-taking. japan, the local currency jumped up 19% in the last quarter, so there could be some chopping and changing and some profit-taking, but we think the market will end the year higher. hour forecast is 2900, which still gives us upside. annabelle: went the negatives start to outweigh the positives? there is concerned it is starting to impact consumers there and we have seen a rally income,-linked stocks that could be at risk. tim: there is a bit of weakness that is good news, but too much is bad news. there is sort of a good spot in terms of things and i think that sweet spot, if we put some numbers on, would 150-155. there are more aggressive shorter-term players in the market who have been buying, for

example, 160-155 jpy calls. that would be a number where i think some of the negative aspects that you quickly summarized, and about, could come into play. annabelle: tearing, sticking with us, the head of macro research in asia and asia pacific regional equity strategist at goldman sachs, sticking with us. we are 10 minutes into the session. looking at the movers in particular, tech is in focus. it is interesting. negative news headlines. first, apple iphone shipments internet really dropping to start the year, a lamp of about 33% over the course of february. not great numbers there. not really impacting supply so far. the other negative news headline was that drop in nvidia overnight, that pullback in big tech. the other theme we are tracking, this one is something that involves the loss of human life, we want to say that first,, i

is the baltimore shipping incident that happened overnight. we are taking a look at the stocks in this region linked to that bridge disaster because it is something that is impacting global shipping channels. you can get more on that in today's addition of "daybreak" if you go to dayb on your terminals if you're a bloomberg subscriber. it is also available on mobile on the bloomberg anywhere app. you can also customize the settings as well for the news on the industries and assets that you care about. this is bloomberg. ♪ ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh

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to be brilliantly boring with your money so you can be happily fulfilled with your life... which is pretty un-boring if you think about it. thank you, boring. haidi: you're watching "daybreak: asia. let's bring back to more, chief regional equity strategist,

timothy moe. thank you for sticking around. last month we spoke about the potential for irretrievable rally in china and he said it largely depends on effective conveyance of policy support and the delivery of that. you sound more constructive on china now, particularly when it comes to a-shares. has anything changed? tim: first, the market is up 15% from the january 22 low, it has pulled back a little bit but still up about 15% depending on the day. so there has been a decent sort of stealth rally, you might call it and that obviously has attracted the attention of some investors, there is a well-known market adage that price changes narrative. that means when the price goes up, people find reasons to be constructive. and the opposite is also true. i think we have had a rally and not surprisingly, we have seems that shorter-term traders a bit

more with a constructive attitude both onshore and also offshore in china. either myself or my extended team have been in mainland china just this week, and also in the united states, seeing a number of hedge funds and quant investors. that corner of the market seems to be more constructive. not super bullish, but certainly leaning more constructive. if you look at the flow data, it also suggests that hedge funds have been recently buying in the past four weeks. it is driven really by two things you mentioned. one is more forceful policy. the sharp end of the steak is a national team buying, but also there has been easier monetary facilitation and greater indications of fiscal support, notably the one trillion renminbi special government bonds that was announced. a drop of that, we are nearly all the way through the fourth

quarter -- on top of that, we are nearly all the way through the fourth quarter reporting season. for the msci china index, the results have been decent. burger china index has been less good, but for the msci china index, the numbers have been better. the point is that earnings are beginning to come through after five, four quarters -- five poor quarters. the forward-looking point i will make is that i think we continue to see that coming through in order for the market to nature lies because we still have a lot of fundamental headwinds. haidi: does that mean you see more breadth when it comes to the trading opportunities beyond just, say, the national favorites, the big index heavyweights? tim: i guess broadly, yes. i might pivot that. we have two views. one is there is a tradable rally that could eventuate and we think we are halfway or a bit more through that depending upon

how things pan out. number two, we have been referring a-shares over h-shares, there is a 500 basis point positive gap between h-shares and h-shares, part of that facilitated by the national team. looking forward we would still expect the national team will be supportive. we are looking at where the earnings are budding out and where the fundamentals look as though they are stabilizing. one added point, in addition to all of the top down microanalysis one needs to, make another dimension is coming more into play and that is the competition between particular industries. will highlight the ev industry where, in aggregate it is doing very well but there is intense competition there. . so there is a difference in profitability. for example, byd, one of the leaders, just announced results, and they were up 80% for 2023, up 81%. but then you see losses in some of the other players. so there is this theme of

profit-less prosperity. . you need to be selective in terms of trying to identify the winners in that vicious competition. that is an added challenge to the dynamic. and also of opportunity for investors. annabelle: a real stock pickers market. curious about korea. we have a lot of optimism around the market. it has pulled back of late. what is your view on that? tim: bottom line is we are very bullish and we have been for over a year. the simple way to convey the story is that it is a 3-layer investment case. the bottom layer is that korea is unquestionably the best cyclical recovery story in asia. earnings corrupt the most because of the heavyweight semiconductor index. and the recovery, over 60% growth this year, is already manifesting in fourth quarter numbers. so we have the cyclical recovery trading at 1.1 times book.

so inexpressibly priced, strong cyclical recovery. that is number one. number two, you have some high exposure. sk hynix selling chips to nvidia is an example. taiwan gives you more ai exposure, but korea is the next winter get the ai layer on top of that. and then there is the now very topical value up program. one or two things about that, the value up program is very much in focus, and there are also important aspects about the april turn election coming up could have a bearing on that. it's important for investors to realize that this improvement in corporate governance has been going on for the last two years. it started with the efforts of the previous administration and carried on with the current one to encourage msci to upgrade msci from developing market, to develop market status a could go into much detail, but the punchline is that. there already is demonstrable.

, that measurable change which has been validated by the asia corporate governors association in your last report showing the, both korea and taiwan made the biggest point gains in corporate governance in the last two years. . so it's not just a flash in the pan, this program, it's a continuation of the program that has been going on. if you look at what japan has accomplished, if there is some mirror image or echo of that in korea, i think the risk-reward here with low valuation and low for investor exposure is still very much to the upside. annabelle: i think japan with its own program it was about a decade before we started to see things come through for that. timothy moe chief asia pacific regional equity strategist at goldman sachs. and we will have more from the forum in asia today. you can catch our conversations with the guests that you see on the screen at those times. we will have plenty more ahead bummer. this is bloomberg. ♪

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haidi: blackrock ceo larry fink thinks that with people living longer lives, the average person needs to change their thinking towards saving for retirement. speaking with "wall street week" anchor david westin, he suggested thinking beyond traditional stocks and bonds.

>> i believe there is some great areas of private mike krantz that will be great investments for retirement. -- of private markets that would be great investments for retirement. i would channel that more towards infrastructure because infrastructure has a higher coupon, but it has a lower profile of returns than what i would say are other areas of the private market. so it has a good corridor of returns, but higher probabilities of meeting those returns. so, yes, we need to be re- looking about how we think about investing, whether that will be private equity or infrastructure. i believe we need to be putting more along-dated assets into retirement, so you can meet the returns that you need to have the pull of money that you require during retirement. >> something else you mentioned was longevity, which has increased substantially. we benefit from that. tim: it's a blessing. >> not complaining.

at the should we be making it possible -- should we frankly increase the age for social security? >> that is not for me to make the decision, but i think we need to have a conversation. you and i are the same age. we are working longer. we find purpose in what we do. the founder of bloomberg, mike, is still working. i believe that for those who can find purpose in work, my gosh, work as long as you can. if you find blessings, purpose in other things, do that. but i do believe we need to discuss these opportunities. i don't think the average citizen knows the extent of how much longer we are going to be able to live. so, the beauty and the miracles of medicine has allowed us to live 10, 15, 20 years longer

than two generations ago, and so, but we have changed our system of retirement or our system of social security. the most important thing we need to do, david, is have a conversation. to that conversation, i think most people will elect to do things like maybe working longer, or elect to be more involved in how they put their money to work for retirement. annabelle: that was the blackrock ceo larry fink speaking exclusively with our colleague david westin. we will have more ahead including on the baltimore bridge collapse set to cause weeks her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit... unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock.

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haidi: we have cpr, the monthly

good for australia, just crossing the bloomberg. for the month of march prices rising 3.4% year on year. that is slower than the pace of 3.5% that was the consensus expectation. we know it turns be a volatile series of data given it is relatively new, the reporting on a monthly basis. but it is unchanged from january. 3.4% cpi on a year on year basis for february. we saw a pickup in gasoline prices. also watching if there was that impact from travel and accommodation costs from when taylor swift was here in australia. food price inflation is expected to see a bit of softening. the housing, rental sector and insurance costs, remaining more evergreen sources of inflation. this is likely to expose some of the concerns that we could perhaps see the rba prolonging

that timeline to eventual rba easing, or dropping that tightening bias, at least. annabelle: the market reaction to that assessment coming through. you are seeing weakness in the aussie dollar. you have also got the asx 200 extending its gains, around 0.2%. that is the market reaction. let's shift to equities. you can see the slide. yields, pretty steady at this point in time. let's change now to the latest on the baltimore bridge collapse, one of the top stories we are tracking today. officials say active search and rescue operations have been suspended, six people and accounted and presumed dead. the disaster happened when a cargo ship lost power and around the francis scott key bridge in the early hours of tuesday morning, destroying it in this matter of seconds. president biden says the federal government will pay to reopen the bridge and reopened the port as soon as possible.

pres. biden: i spoke with the governor as well as the mayor of baltimore, the county executive and both united senators and the congressmen. my secretary of transportation is on the scene. i told them we will send them all the federal resources they need in response to this emergency, and i mean all the federal resources. and we will rebuild that porch together. haidi:. haidi: the baltimore disaster is set to disrupt logistics and supply chain for weeks as well as pose particular problems with the consular shipment of coal, cars, and construction materials. let's get more with the rahul kapoor who joins us from singapore, from s&p global. give us your initial assessment, because i understand in the overall percentage of goods that pass through this channel, it's not a huge percentage but, for specific industries, it is actually quite dominant. rahul: good morning, and thanks

for having me. this is, in our view, a freak accident. it's a very unfortunate incident. if you look at the impact, the key here is a u.s. automotive supply chain, it is the number one port for the automotive supply chain. there is also containerized agriculture exports, as well as coal exports. the port of baltimore is the second port for u.s. coal exports. it will impact that freight. what we see it more as a local rather than a global impact at this onset. haidi: a lot of the impact will depend on how long this takes to resolve, right, do we have any expectation of how it plays out from here? rahul: i think for us at this moment, it is very difficult to put a timeline. it could be out for months at a time and the waterways could be shut for that time. if you look at the coal exports particularly, the port of baltimore last year sent 25

million tons of coal exports. it is the biggest market, in our view, that will be impacted. it will probably have an impact on the coal prices. the automotive supply chain can be rerouted, as can the containers. but not a big impact. it is unfortunate incident. . the bigger impact is in coal exports out of the u.s. east closed. annabelle: annabelle: what about what we see for cars and light trucks which also is important for european carmakers, for instance, how easy is it for them to make adjustments? rahul: rahul: certainly it will have an impact, but the supply chains are agile, so they will be able to divert ships, they will look at the port of savannah, port of new york and new jersey and so on. if you look at the slightly longer term timeframe, they will be able to do basically -- observe the impact we're seeing right now from the port of baltimore. annabelle: in terms of other

supply chain disruptions that we are monitoring what are you most focused on at the moment? is it still what we see in the red sea? rahul: yes, that, for us, is still a big one. we're calling it essentially. the weaponization of global shipping to appoint. we have to understand that the houthis have disrupted close to 50% of trade through the suez canal and the red sea. container shipping traffic has been rerouted. you see what is happening with the tanker markets. for us, it is a concern that this could be a template for future conflicts, may be in the strait of hormuz, the tennessee, and whatnot. that houthis have succeeded in raising their political voice and showing to the world that this can be done. haidi: 's access to the red sea and the panama canal we are also bracing for the possibility of port strikes. when something like this happens, are we already kind of dealing with a broader industry that has a pretty low tolerance

for these sorts of incidents to happen? rahul: indeed. the geopolitics, if you look at the last three or four years with covid-19. there russia-ukraine war, the global supply chains are on tenterhooks. essentially what the cargo owners, shipping companies are building in in terms of disruptions, efficiencies inefficiencies in the global supply chain. you are talking more time spent at c4 cargoes spent at sea for cargoes. this data feed into it. good thing is for now, demand has been slow on the container side of things so we have not had that impact on freight trade. we are still higher than where we were before the red sea crisis, but overall, inefficiencies are being built into the supply chain and that is a concern for us. annabelle: how will it impact

container minor earnings, those numbers? rahul: before the red sea crisis, this year was going to be a bloodbath for container shipping earnings. rates were down close to 90%. we have since seen an uptick, it rates have increased particularly on the asia-europe trade, but as the new container ship rerouted, we have started correction in terms of their free-trade. we are negative container shipping. . there is a lot of supply. a lot has been absorbed this year, but demand is still pretty weak for that matter. so earnings this year for container shipping is likely to be very disappointing. annabelle: that was s&p global community insights vice president and global head of shipping rahul kapoor there. let's shift now. we are 40 minutes intro trade so far, for tokyo and also seoul. market action so far is fairly mixed. you have the nikkei pushing higher, perhaps aided a bit by

the weaker yen dynamic given it stays above that 151 mark. not budging from those levels. korea had a few gainers to start the day, but we are fairly flat at this point. a asx 200 creeping up little bit higher, but again, modest gains. we had inflation numbers coming through. the data missing estimates. raising 3.4% on the year for february. the estimate had been for 3.5% instead. earnings focus, heading to the session, we heard from timothy moe from goldman sachs at the top of the hour, the numbers so far, from china are better than estimates we have seen. but big banks are certainly in focus. we have a number of them reporting across the week. this chart here taking a look at the equity moves we are seeing. bank of communications is among those that is up today. bloomberg intelligence's says the's lender for your earnings for 2023 may be dropped down by

its net interest margin. let's bring in fintech senior analyst francis chan. we know you are focused on the readings. the impact of lpr decisions. francis: about the chinese banks, margin squeeze will continue to be a dragging factor on earnings in 2024. 2023 has been in the past and we're still seeing very high deposit costs from the third quarter to the fourth quarter of last year. that has been a major drug. so the banks, we are seeing that they will not be saved from lowering revenue growth in 2024. in terms of asset quality, it will be too many investors' surprised, that these banks may hold up well.

i already got two sizable banks reporting results over the past week. they improved their lpr ratios, they improved along racial and overdue along racial. the $1 million question is, where have those real estate problem loans gone if they are not in the banking system? haidi: credit demand has been weak, and with the lpr card, how much pressure will be on nim'ss? francis: on net interest margins, the lending rates or the long rates may go down further. obviously it is on both corporate and household loans. mortgage rates have been going lower and lower as china is seeking to stimulate the housing transactions again. at the for corporate, especially for industries, beijing seeks to

promote in the coming years, like the new tech industries, the green industries. they will give them more deference. deposit rates can no longer match even if they trimmed the target for deposit rates since the last quarter. annabelle: you mentioned the exposure to the property sector and perhaps that is sort of starting to fade in terms of the exposure to that sector. we have a chart we can bring up now taking a look at china real estate loans and he can see that net debt started to fall in the first-ever last year. which does sort of highlight that. if you say that we earn seeing so much exposure to the sector as before, is that a positive thing? if you aren't selah exposure, where has it gone -- if you earn seeing that much exposure, where has it gone? francis: bank loans to

probably companies in the state sector. they did a number last year and according to our estimates, the total liabilities of the property developers could go up to 90 trillion renminbi in total. there are only 13 trillion, about 13 trillion yuan of bank loans for the sector. so it will be upstream-downstream suppliers, downstream companies, homeowners who have paid in advance and other liabilities that you can see on the balance sheet. those could also be the source of issues for the economy. haidi: bloomberg intelligence banking and fintech senior analyst, francis chan there. coming up, we will be speaking with the ceo and executive astrazeneca on the sidelines of the boao forum, their pledge to

support beijing's pharmaceutical industry as u.s. politicians are seeking to decouple. that's, next. this is bloomberg. ♪ when you automate sales tax with avalara,

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annabelle: annabelle: we are live at the boao forum for asia and chief north asia correspondent stephen engle joins us. one of those guests is joining you now. stephen: that's right. we are live at the boao forum in hainan island. it's a bit sweltering right now. we have a good interview with pascal soriot, ceo of astrazeneca. the pharmaceutical industry has benefited greatly from china's rise, you have a number of deals in this market. also the flags of protectionism and national security are rising in the united states and targeting china. how are you navigating this tenuous situation with the bifurcation of not only the tech world, but biotech and other areas? pascal: thanks. we focus on science and helping patients get access to medicines they need. in the last number of years we have brought our medicines to china to help patients, but in

the last five years, innovation has boomed in china and given many opportunities for us but also other global pharma companies to partner with chinese companies, take these products and bring them patients around the world, u.s., europe, japan, everywhere. we are focused on making sure we bring patients new medicines. stephen: before we get into the geopolitical issues, how fundamental has china become in the global pharmaceutical industry? pascal: it's not yet tremendously fundamental, but it is becoming rapidly very important. suddenly the -- certainly, the u.s. will continue to dominate innovation in our sector, no question, for some time. but in the world, the second-biggest provider or innovator in pharmaceuticals will be china, especially with new technologies, gene therapy, in the old days, we were bringing small molecules,

antibodies, and that is what we did for many years. in the last two years, a large number of new technologies have emerged and that is where companies here in china are focused. stephen: what will be the biggest ramification of the buyer secure act in the united states if it becomes law, and essentially this legislation going through congress would essentially ban chinese pharmaceuticals from getting federal contracts if they are deemed to be a concern on national security grounds. does this benefit you or is it bad for the global pharmaceutical industry because essentially at the end of the day, it will limit access for patients who need particular drugs? i think it's always important to try and facilitate collaboration in science and the exchange and sharing of new data and the sharing of new inventions. i don't think it will necessarily affect us, because

we are sourcing those products, basically developing them. we are going to manufacture them. we'll manufacture them in china for china and other countries, but we will also manufacture them in the u.s. or in your for the rest of the world. dash for in europe, for the rest of the world. the fact that the product was invented here does not mean the product is necessarily sourced from china for the entire world. stephen: an important delineation essentially, because this law could prevent chinese pharmaceuticals that will appear from going into the world's largest market, the united fish. -- the united states. pascal: we have very large supply chains and we are organizing ourselves so we can supply the united states and europe independently. we also are building a presence here in china so we can actually supply chinese patients independently. i think the fact that the

product is invented here does not mean it will be better -- manufactured and supplied from china. stephen: what other products to uc for the market. you have grayscale technologies, therapies for cancer, you also have some of the weight loss, a partnership with ecogene. you have another vaccine partnership, i believe, with not the mrna,, konsaino. pascal: yes stephen: . what kind of future deals do you have? pascal: we have a number of future deals. before i do that, let me take your first example. it's a good example. the company has tremendous technologies that will help us and police play an important role in how would invented and develop new products in cell therapy. we also announced a large 700

media investment in cell therapy manufacturing in maryland -- 700 million dollar investment. we will manufacture our cell therapy products in maryland. that is an example of what i was saying earlier, the issues of invention, development and manufacturing are disconnected in that instance. in a few months, 12 months or so, we have invested up to $6 million in seven transactions with various companies. that one is an important one. but we also have a drug for obesity and cardiovascular disease. we have products being developed already, there will be more to come. i am not saying we will spend that much every year. there has been a period of time when we could do many of those things, but certainly, we will continue looking at potential

partnerships. stephen: the other company i was searching for, you announced a vaccine partnership one. we also have can-sino one with the mrna for covid, seems to be a back burner issue. how do you see it irrelevant with chinese friendships for mrna beyond just covid. pascal: minhai is a subsidiary of a large refectory of vaccines in china. vaccines in our industry, the flow of medicines is usually not impacted by sanctions, right, except vaccines are a special place and we saw it during covid, every country was trying to prioritize their citizens which you would expect them to do, of course. so china is focused on making sure vaccines manufactured in china are manufactured in china

for their people. so the partnership that we have with minhai is targeted at developing vaccines and manufacturing them rather chinese population. we also have a couple of vaccines we have that could help the market in developing countries around the world. stephen: there had been speculation in the past that perhaps you would think about spinning off the china business? is that something you are even thinking about? pascal: we don't comment on these kinds of issues, as you can imagine. the company studies all sorts of things and people pick up on all sorts of rumors. but for now, we are very happy with the way we are organized in china and our focus is developing and bringing new medicines to patients here in china and around the world. stephen: pascal soriot, astrazeneca ceo, thank you very much and good luck to you here at the boao forum. pascal: thank you so much.

stephen: back to you. many more interviews coming up including with andrew forrest, fortescue metals chairmen in a few minutes. haidi: it is a good conversation. chief north asia correspondent stephen engle at the boao forum in asia. later we will be hearing from the fortescue founder and executive chairman andrew forrest in the next hour. you can catch all of this on line and catch up with past interviews inner interactive tv function, tv . you can also dive into securities or bloomberg functions that we talk about, entering into on the conversation they sending instant messages during our shows. it's for bloomberg subscribers only. do check it out, it's at tv . this is bloomberg. ♪

haidi: taking a look at how u.s. futures are trading at the moment. we see this month end rebalancing, a bit more caution kind of entering the picture after this rally we have seen. we are looking at an upside as we get to the sading in taiwan. this is bloomberg. ♪

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david: welcome, hope you are all well. you are watching "the china