>> it's almost 11 a.m. in singapore and shanghai. welcome to "bloomberg markets: asia." i am haslinda amin. caution dominates trading in asia ahead of the flurry of globalization reports that influence monetary policy. chinese property firms in focus, and fresh easing measures. shanghai flooring down payment ratios and the minimum threshold. stephen: and i am david ingles at the ubs investment conference taking place here in hong kong, lots of conversation coming up around india and the elections. as we countdown to the results that markets are bracing for. and you may know who they are, some perspective from two leading economists who have skin in the game. one is a former r.b.i. governor. later in the show, we will be judged by the former chief

economic advisor to that more the government. haslinda: that's right, both holding different views on whether policies adopted by modi are right. let's look at how markets are fairing, avril hong is on top of that. traders are pretty much sitting on their hands waiting for data. israel: waiting for what we are going to get friday, not just the feds preferred gauge of inflation, but also those china pmi's. we started with stock benchmarks moving sideways. don't forget we also have the u.s. that was on holiday so we are not getting the typical direction. but a bit clearer as the session progresses. the hang seng has been very sentimental-driven. there is a bit of positive news coming through based on what we are seeing out of shanghai and the property easing there along with yesterday's announcement of that shift investment fund, tens of billions of dollars in that direction.

japanese assets are also in focus. because services ppi out of japan today and it shows a broadening of inflation, making the case for the boj to hike rates again, and certainly that seems to be the expectation, take a look at where the yield on the 10 year is, still above 1%. stocks in japan, under pressure. the yen is putting away from the 157 leveled against the greenback. of course this is against the backdrop of the software dollar. in that it affects space, not that big a move, but there is an undercurrent here. we saw yesterday the euro dropped into a nine month low against the pound, this is after one of the governing council members kind of went against the grain and said it's maybe not so unlikely that we see consecutive rate cuts. june was penciled in, but july is the big question. this is what we're seeing in the

fx space today, has. haslinda: avril hong with analysis on the fx markets. charu chanana is sox markets' global strategist and head of fx strategy. traders are weighing and seeing how the data comes out, but suffice to say, receding bullish bets on the dollar. guest: yes, we have seen that even with stronger data coming out, the top and sock from the dollar seems to be capped. the question is how much higher it can go from here if we continue to get the narrative out of the fed relating to the higher-for-longer. but do i get on the dollar bear train yet? the answer would be no, especially because we are getting to the slope summer season where volatility levels are super low and likely to stay lower and that means carry trade and continues and the dollar, given the high yield it is

providing now, is likely to remain at these levels for now. haslinda: markets are divided on whether the fed will move once or twice this year and solomon of goldman says none at all. it doesn't matter whether it is one or two unaware that the letterheads from here? charu: certainly plays a big part because the market has also been positioned for that fed put. even when we get that stronger data, yes, we have pushed back expectations of rate cuts, but the messaging from fed chair jay powell has been dovish. even though i would say there is a divergence in the fed commentary, other members have started to tilt more neutral to hawkish, preaching higher-for-longer. but suddenly, if there is a clear acceptance from jay powell about the potential of rate cuts, i think there is quite a bit of downside there for the donor in that case. haslinda: people were talking

about how the euro and the pound positions are shifting versus the dollar. what are you seeing? charu: the euro positioning has been penciled in a lot because of the juvenile rate cuts that has been priced in almost fully. i think the big question for the euro is what happens after. we have seen the eurozone economy stabilizing a bit. if the ecb june rate cuts, is it a policy mistake? can they truly bring back inflationary pressures in a big way? i would be concerned about this move from the ecb and the move in the euro is only going to come after we see the narrative out of that meeting. there is a shift happening in the ecb where they are a bit more balanced about the policy direction posed the june meeting and preaching data dependence. i do think the euro will wait for that narrative to come out. sterling i think is purely risk sentiment play. the way u.s. equities move, that impacts the sterling more than the yield divergence.

haslinda: give it your base case, how would you be playing the majors right now? charu: i still think in the next few summer months, carrie trading will be the big scene. it certainly means that i stay bearish the. dollar-yen is a buy the dip. risk sentiment, as long as volatility is low, that would help starling. so i am still looking at sterling, but the big story is around the aussie dollar which is getting the benefit of this risk sentiment, but also these policy measures we are seeing out of china. so the aussie dollar and kiwi dollar potentially, are looking like they are potentially on a path of upside. haslinda: speaking of china, the pboc remaining patient and wants to see what the fed does. it would help us to the yuan from here? charu: i think the pboc is in a bit of a difficult situation because we have seen this increasing narrative out of the g7 where they are highlighting concerns about china's overcapacity.

and china has that expert engine that is supporting the economy. something like a balance sheet recession at this stage, exports is something that they need to continue to power ahead with. and for that, they need a weaker yuan. but if they were to go for a measured devaluation, that g7 narrative against china's export push could get even stronger so he could bite them back a lot harder, so they have to be a bit more careful around their policy on the yuan and i expect a very stable outcome there. haslinda:. haslinda: i wonder if it is justified for the yuan to be lower from here? you talked about the trade tensions, g7 finance ministers calling out china's trade policies. we also have underwhelming support for the economy. property will support notwithstanding. it doesn't justify a weaker

currency? charu: fundamentally, yes. from a yield differential's perspective and from the perspective of the fact that the chinese central bank is more darvish. . they are still in deflation and they need support for the economy. given they want to push the export engine, it makes sense for a weaker yuan. but they don't want to trade tensions to bite them even harder at this stage, so i don't see a rapid acceleration there or a move that could really devalue the yuan in a substantial manner in that short span of time. so the devaluation i think will be in a very controlled way. haslinda: you talked about carry trade earlier on. in terms of asian currencies, what is the best carrie? charu: i think that -- is looking strong, their growth inflation story is looking like they don't need to cut rates anytime soon and they could postpone it rate cuts to later this year if not the start of next year, so that continues to give them some strength. and just that it has been there realized --, it has been so low

despite the fact that we are in an election. as we get through the election period, volatility will remain slow and election risks in mexico and south africa are quite big and we could see this carry trade being transferred into asia. haslinda: someone talking about the upside to the inr. there is also a fiscal stability and both supports stronger currency. charu: don't forget the listing of indian bonds in the bond index, it's also creating some inflows into the indian economy and supporting the outlook for the indian rupee. we are getting past those election risks. we will have to see the election outcomes, whether morality, does he get the kind of majority he expected to. but after that period, of volatility i do expect the indian rupee has strong momentum.

haslinda: what if modi feels to get the majority? how much impact might that have on indian assets? charu: i think markets have already started to price that in. he was aiming for 400 plus kind of seeds and there is now a realization that the target has been very high and may not be achievable. there could be some more risks coming back on the table is, especially if he is not able to reach 350. but the structural story in india is so strong. you look at demographics, you look at the manufacturing upscaling they are doing. there is a lot of good structural team wins -- tailwinds that the economy enjoys. so these are actually an added reason for investors to get into the market. haslinda: for india it's also about bond inclusion. a lot of it has been priced in, but there is still further

upside for the indian government is all the factors come together. charu: absolutely, the headwind i see for the indian markets would be whether those fluids that came from china slowed down and go back into china. i don't see that happening because again, china as much as it is a technical story, structurally, we still have not addressed the property sector issue and the demographics issue, a long-term problem that the china economy faces. unless that reverses, the structural story in india stays quite strong. haslinda: t plus one, the impact of that as we track the u.s. coming back from that holiday? charu: some amount of volatility, to see how that plays out. i do think, coming from an ethics perspective, some of the flus could get transferred from property to fx as people wait for that change to settle in. but in the long-term it does mean a creech liquidity and that is good for the markets. haslinda:. haslinda: good to have you with us, charu chanana, fx strategy

head at saxo markets. still, insight from an investment manager, and the imf. we will discuss the implications of a possible third term for prime minister modi later this hour. keep it here with us. ♪

haslinda: welcome back the ubs is an investment conflicts -- conference is underway this week. let's get back to the conference word bloomberg's david ingles is with our next guest. dave, take it away. david: certainly inflation has been a key feature which i think his treatment of our conversation for the last two years? three dates? losing count really, and here we are thinking, are we any better off than when the fed started hiking interest rates. barely a year instance since the last hike. joining us of course onset is former r.b.i. governor and

current professor at the chicago booth school. talk about india in a moment, but on the topic of has the fed done enough, is it restrictive enough, where is your opinion in all this? >> good question. if you look hard, you can find signs of slowing. you can see for example the sum of the riskier borrowers are starting to confront higher interest rates. you are seeing downgrades start to increase to the level who have not seen for some time. you are seeing credit card defaults started to pick up, and you are seeing some slow down in the pace of sales growth. all of this is good news for the fed because it means we're getting that kind of soft landing data it is looking for. but if you look at the single biggest effect is through financial conditions. financial conditions are back to the level of the war when the

fed started tightening. remember they were pretty easy then. so the question the fed has to pay attention to, of course last month inflation data was comforting, but are they in restrictive mode? part of the reason is the usual channels through which fed policy works -- higher interest rates, working through debt to slow down activities for working through savings to slow down activity, don't seem to have an effect. household savings have all and than increased. you can see from the debt study, 30 year mortgages are not being affected by these higher rates because people are staying on, their mortgage they are not borrowing and new. companies during the pandemic pushed out of the duration of their debt, so they are not re-contracting debt at these higher interest rates. so the effects are long in coming and the fed at some point is going to start getting

worried, are we restrictive enough? david: if not already. you make a good point, you started by saying, if you look hard enough, you will see that rate-sensitive sectors listening. that has started to take effect. but it is really on the part of the official basket that doesn't seem to be listing top monetary policy. what is a central banker to do in this scenario? prof. rajan: and the key question is which aspects of the official basket are still worrying? services are a big worry. the rental component is also a worry that has started showing some signs of decrease, but renters in real-time -- rentals in real-time are starting to push up again. i think it all hinges on the labor market. will that the household feel confident about employment? with the strong employment rate still, you will not see a

slowdown in consumption. and that is really necessary. everything sort of hangs together, but some labor market slack would be necessary to give the fed enough confidence to start reducing rates. until that happens, it is guesswork whether inflation will come down much further. they have to be in data watch mode rather than anticipatory mode. david: which is what olivier blanchard, who was just on your panel, it was here and said a few minutes ago. he talked about how the labor market is still on the hotter side of things. . so let's make it simple. do you think the next move for the fed is a cut or a hike? prof. rajan: i will give the economist answer. "it depends." [laughter] prof. rajan: it depends on the data. my sense is if they see some genuine movement downwards in inflation, if owner-occupied rent, if that starts coming down which they have been waiting

for, for a long time, if everything seems to be moving in the right direction for a few months, then they have the confidence at that point to cut. the last thing they want to do is cut and then see inflation perk up once again. the real problem, of course, is by rates, they look restrictive. but financial conditions are not. which one do they believe? david: as a former monetary policy implementer, how would you address that? prof. rajan: unfortunately, i think the fed wants to have it both ways. it has hike to rates reasonably fast, to a high level. but it also wants to give the markets hope that rate cuts will come. i think they should stop talking about rate cuts and just say, take what it takes. you hear that, but you hear also

, certainly at the beginning of the year, that cuts are coming. that gives the market hope, which then makes financial conditions is yes, which makes the fed start cutting. so i would stop talking about rate cuts at this point and say, we will do it when we do it. david: every meeting is live. i would ask you about india, election results are coming out. in the event that we don't get a third term for prime minister modi, do you think the infrastructure push is at risk? prof. rajan: there is a lot of continuity built into indian policy. so, my sense is that whatever government comes in will take a lot of the good stuff that has been done and continue it. i think, of course,'s overtime they will have to look at where they push. but certainly, i think there is a budget deal soon after the

election. my sense is for the most part, it will be a budget that pushes on all the good stuff that is happening while trying to see what other changes have to be made. david: when you look at the numbers on infrastructure, what they have built and what is coming on line. i think our colleagues at bloomberg have a number in the order of about 500 billion u.s. dollars of infrastructure coming in the next two years alone. its ability and issue you ever entertained? prof. rajan: i think at some point -- is afoot ability and issue you have ever entertained? prof. rajan: at some point you have to look at that quality of the infrastructure. do we need a metro for every city or is it ok if we stop at the big cities? i think there will be -- you will have to look at it to make sure you're not over investing in infrastructure. but i think india has deficiency so far was in fact infrastructure, which is being remedied by this push.

david: the critics would say that the infrastructure is geared towards benefiting the rich and the middle class, does that resonate with you? prof. rajan: some of the elements of the infrastructure push will be taken up by big steal firms, for example. i don't think it is the primary intent. -- big steal firms, for example. i don't think it is the primary intent from it going forward i think india does have to examine whether too much of economic activity is concentrated into a few firms. the answer to that is to level the playing field and make sure many firms have opportunities, both domestic and foreign. david: this is something we obsess about, maybe sometimes over-obsess over, do you think the growth trajectory on the headline level for a country this complex, do you think

economics of it? prof. rajan: the 6.5 percent tag to gdp which is what people expect for the next year or two is reasonable. i think the nature of the growth is a little too much towards capital-intensive growth a little bit, too little towards creating jobs. that needs to be examined. but broadly, it also needs to be increased. 6.5 percent is too slow for a country with the kind of population dividend india is experiencing, young people entering the labor force. we need to figure out how to get them jobs. productive jobs. so that india cannot only employ them but also increase the rate of growth may be to 8% or 9% which is where we should be given that dividend. david: 8% or 9% is what should be the potential growth of the economy. that does create inflation

problems. prof. rajan: i don't think it will, where does inflation come from? from too constrained a supply. if you push for a percent or 9% today without enhancing the quality of the supply, you may run into inflationary problems. but i think a few small changes in improving the quality of the labor force, making people more employable, the apprenticeships and training programs we are talking about, could actually increase supply to the point where it is not inflationary, and you can manage that kind of growth. today, if you do it, you will run into labor shortage problems. david: you mentioned jobs as a weak spot. let's put it that way. what is the -- again and again prof. rajan: , you hear from firms, we have a lot of people, but are they skilled enough to work in my factory? if you are coming, for example in manufacturing, in the southern and western states with a lot of women available to work

. they are skilled and their work environment is such that they feel that they can actually go to work. so you are seeing a lot of success there. we have to make sure the rest of india has the same kind of success. david: the percentage of jobs you are seeing in agriculture, for example, is going up. should that be going up, given where india is in its development cycle? prof. rajan: i think it's an indication that we are not creating enough good jobs and services and manufacturing. we are seeing jobs in construction go up, that is part of the infrastructure push but we absolutely need to enhance the number of jobs outside of agriculture. agriculture definitely may go up, but the sustained movement of about four or five years i think is also worrying. david: on monetary policy, not so much on rates, there are a

lot of inflows into india. conversations where the rba needs to include forex intervention is a direct tool. do you think they should? prof. rajan: the r.b.i. has always used forex intervention to reduce volatility, but not to establish a level for the exchange rate. i think it should continue doing that. i presume it will continue doing that. the level is established by so many other things. but for the r.b.i. to try to fix that level i think is very dangerous. david: and we don't want to go down that path. raghuram rajan, former r.b.i. governor and chicago professor, thank you for your time back to you in the studio. ♪ 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!

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haslinda: welcome back.

checking the markets are heading to lunch at the moment. the csi 300 is down 0.3%. keeping a close watch on banks in particular after xi jinping called for financial regulation that has a bite. it is to reduce financial risk as well as hidden dangers. also keeping an eye on chip stocks. still in focus after china announced a massive semiconductor investment fund to propel its chip sector. it's the latest move towards self-sufficiency. benchmarks are in negative territory. shenzhen composite is down 0.5%. the chinese yuan is at 7.24 60, fairly flat against the u.s. dollar. elsewhere, trepidation as investors await a slew of data. for the moment, let's look at how japan is faring, coming back from lunch. avril hong is on top of that. avril: negative across japanese assets, but slightly for

different reasons than china. we got services ppi out of japan today and it shows higher-than-expected climb. that seems to suggest that inflation is broadening out, especially in light of comments from officials yesterday. investors are getting we will -- but we will get more hikes from the boj. it is being reflected in the growth names as well as stocks that benefit from a cheaper urine such as toyota. materials, bankia-related stocks are helping to offset the losses from some of these growth-sector stocks. so the nikkei is down, as is the topix. the yen is stronger. but keep in mind, that is really hard to fight the carry trade. still hovering at relatively weak levels against the greenback. the yield on the 10 year is still sitting above 1%.

let's flip the board because this has implications if you look further along the curve at the 30-year. if you are seeing those expectations about japan to hike and china data ease, that is being reflected in the spreads, the tightest in 15 years. it should be something that is good for japanese financial stocks. not so good for china. haslinda: u.s. markets when they return, will be trading at the fastest in about 100 years. what is that about? avril: yes, this is a system change we are bracing for, due to a change in securities regulators' rules. we are seeing potentially the transaction times about having -- about halved. it is something we previously saw in the 1920's. this system would mean that trade in new york are settled in a single day. very fast settling of transactions.

but there are teething issues to be watching out for. with things happening so quickly, it begs the question if there are errors, will there be enough time to get them fixed? keep in mind, as well, there are concerns about whether there is enough time for investors to be sourcing the dollars in time. so we good to see very fast to times, but there are some concerns lingering still. haslinda: avril hong, thank you. now to india. forward investors are already piling into indian bones and ahead of their inclusion in june. in jp morgan's key emerging market index. for more, let's bring in a fixed-income analyst and fund manager kruti chheta from mirae asset management. we are seeing passive inflows making their way. in terms of the part of the curve looking attractive, what are you betting on?

kruti: we are already seeing that for investors, like you rightly mentioned, we have seen a lot of participation, nine point $5 million over the coming into the bond markets. this has come largely into the belly of the curve, 2020-2023 segment. more so for the reason because these are the securities were at maximum investment is allowed. so we have already seen that from then until now, yields have moved around 25 basis points plus. we are just one month away from not -- not even a complete month away from the inflow data expected. a steady flow is continuing to the market, we will see yields will ease as market participation increases. but if inflows have come in and they decide to move some profits

away, then we might see a slight correction in the markets. so haslinda: a lot has already been priced in, in terms of new movements, what other factors might come into play? how about the fed's higher-for-longer stance? kruti: the situation of higher-for-longer, the r.b.i. is also playing on that, higher-for-longer. domestically, that situation remains healthy for us because we have been patient within the target band. we have done console edition for the last few years. and we have seen, this current regime has not created surprises on depositors. we have already seen some --[indiscernible]

and the new budget, we have seen dividends also coming in higher than expectations. so if there is a more positive to come in the new budget, we wouldn't be surprised on the yield trend and there could be more positivity relating to the india fixed income markets. haslinda: the thing is, as we await results of the indian election, what if it disappoint? what if modi fails to get the majority and lamented he wants, how might this play out in the bond markets? kruti: there are three situations we can look at. there is a number, the market consensus is there and if he does not come close to that consensus, we might see that. but it is still a majority and there would be slight volatility. there could be some course

correction or some volatility in the near term. and then we will see that we are back to the pact that was made. in case there is a change in the review or a new government, then obviously, there will be a selloff in the market and the markets will wonder what the spending will be an on what segments we are going to spend on, whether it will be more of that revenue expenditure, or more on the infrastructure expenditure. in the case where there is a failure to set up the current regime, there could be a selloff in the market. haslinda: you talked about the r.b.i. dividend, 20 $5 billion higher than anticipated. would that necessarily mean a cut in borrowing in the new budget, do you think? kruti: if you hear the speeches

out of the current government, saying that once they come into power, they have a 100 day plan which has already set out where they are going to spend it. but as previously mentioned, this government has not failed to surprise us. not ignoring the fact that we have nine months of spending in this fiscal year because of the elections, we lost three months of spending. so there could be a slight cutting of that because of the shortage of the time. there could be a cut down and probably we will see that in the next year -- added to the next fiscal year. haslinda:. haslinda: the next r.b.i. meeting is june 7 from and how are you weighing the growth and inflation dynamics? kruti: in the next meeting we are not expecting much of the action on the rate front because of the elections. we have seen that the

government's cash balances have swelled up and there have been -- system liquidity has been negative. so we are expecting some of the action on the front of the liquidity measures when they could shorten, then we are seeing a smooth running of liquidity. or they could do bond buybacks, or they could come up with a number on government bond buybacks. but right now it will be wait and watch because we are awaiting a monsoon. it is expected to be about normal which should be good, but the spatial distribution of the monsoon remains key for us because of inflation having a greater application on the cpi basket. gdp numbers are expected to be six-6'9" percent, that is the market consensus estimate that could still bring gdp growth

above estimates, which worth seven point 3% to 7.9%. so the r.b.i. will show comfort on the growth front and wait and watch on the inflation front and have measures toward liquidity. haslinda: realistically, when can we expect the r.b.i. to start cutting rates? i know central banks around the world are we doing on the fed and expectations have moved from six or seven rate cuts. now, one or two. how might this impact and perhaps influence the decision by the r.b.i.? kruti: when it comes to the r.b.i., we have to understand one thing. where developed nations have done aggressive rate hikes, we had not gone for aggressive rate hikes at that moment. so to that extent, when there are aggressive rate hikes by the global central banks, we can expect there could be rate cuts that can be undertaken by the r.b.i.. otherwise, we would manage

mostly through the liquidity operations, rather than going forth straight rate cuts. other than growth rates substantially coming down, but as of now we don't see that growth rates coming down substantially. haslinda: thank you so much for that, mirae asset investment managers' fixed income fund manager kruti chheta. let's stay with india. the ceo of the national stock exchange in india is expecting huge foreign influence after the elections. he spoke to us -- huge foreign inflows after the elections from that he spoke to us at the ubs asian investment conference in hong kong. >> the market has taken sort of a pause and waiting for election results to come. >> you guys do very well as far as attracting retail investors. what do you think you are doing well and what are the best practices, that are exchanges in this part of the world should do. >> india is a large country and

it is a highly digital country. the remotest corner of india, everyone has smart phones and mobiles. very nice band with an extremely low cost, so people are able to connect to us. we have close to 95 million unique investors. david: 95 million? >>? >> yes, 95 million. it effectively lots more people post-covid. and also growth. young people are living better than their parents at that age because of the way of you has come up. that's why they have more to spend and save. they are investing in assets like land -- their parents were. snow youngsters are investing in equities and that is a good change that's happened. formulation of finance is happening, high-tech things like direct benefit transfers and e

payments, gets more people into a formal investing. david: based on conversations with brokers, is the market expensive? 20 times, let's say? >> people discount the future. not the past. it's about yesterday's urning and today's price. that is what the market is telling you, they are looking at tomorrow's earnings and today's price. in china, price earnings are very low because people don't have a lot of things going on so that is why something earnings will be higher. in india's case, people think earnings are going to go up. david: you are saying china doesn't have a visible earnings growth story? >> earnings will continue to go down year on year. on the 10 year scale, that is what people -- there david: is a premium being

built into the market. what is the sense from investors here? it's the same group of investors that have taken allocations from china and taking them to india and they might be pulling that out of india now that the chinese market has started to come back. ashish: in the last three years, china has promised a lot. china is a much larger market in terms of numbers. each time people -- like post-covid, people had a feeling there would be huge growth, it didn't happen. people lost money in the way. second time, people are worried whether it will be allowed to come out or not. that is also an issue. i met a few investors yesterday. what they tell me is that post-elections in india, there will be a lot of money waiting to come in. haslinda: national stock exchange of india ceo, ashishkumar chauhan speaking

exclusively with the "china show " coanchor david ingles. plenty more ahead. keep it here with us. this is bloomberg. ♪ ♪♪ ♪♪ ♪♪ ♪♪ sandals jamaica sale is now on! with rates from $199 per person per night. visit sandals.com or call 1-800-sandals

haslinda: india kicking off its

trading day. one minute into the trading session, here is how it is looking for its benchmarks. pretty much gains, attempted gains, but gains nonetheless. the index is up 0.2%. the nifty -- india is trading at high valuations and according to the nse chief executive officer, high valuations are a reflection of tomorrow's earnings at today's prices, just like what we saw for japan, as well as china and europe. in terms of the indian rupee, it is trading at 83.11 75. it has strengthened as indian stocks hit record highs. the cofounder of this firm says it is aiming to be profitable in one or two years. we spoke with him earlier and asked about their new ai offering. >> it is the answer to our

chatgpt or gpt-4. so we are a company that is 10 years old. we are not a new company. we started in 2014 help from nvidia, donating 80 gpus to us. we used to be the earliest chinese research team that did a lot of deep learning and computer vision and we started a company in hong kong and set up offices in beijing, shanghai and et cetera. we listed our company a little more than two years ago. it has been 10 years for us. this year is our 10 year anniversary. we released our newest models to compete with the best models in the world. and, of course, we know that there will be a gpt-5 or even gpt six coming up, and we're are

trying to make use of the resources that we have to catch up. so historically, during the past 10 years, we raised 6 billion u.s. dollars in total in terms of capital. we are a big investor in nvidia chips, we bought more than 40,000 nvidia chips in the past 10 years. we leverage those chips to train all kinds of models, computer vision models, large language models, diffusion models for generating images and videos. we are trying to put those models into products and release them to industries in asian markets. david: you mentioned a couple of things. let me pick up on your plans to monetize that and because competition, as we know in

china, is quite fierce. do you have pacific targets for this specific ai model or others? xu: yes, firstly, we believe ai represents the future for the next decade or two. having leadership in the technology, will be attracting a lot of customers to work with them. so i see that already in the u.s., a lot of customers working closely with leaders like openai, anthropic, and i believe in the asian market, there will also be leaders as well. so we try to be that leader. but of course, there is a shortage of resources here in asia, in general, for instance, a shortage of compute. in general, it is like 10 times of the compute resources that we have here compared to the u.s. leaders. but i think asian markets never

lack talent and they never liked data. so in terms of talent and data, i think eventually we will also be able to -- even though we have a lack of compute, we are able to make sure that we squeeze the last bit of the company and try to read to them. haslinda: that was senta time cofounder of xy bing, speaking with david ingles at the conference. keep it here with us. this is bloomberg. ♪

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haslinda: much of south east asia has been sold. under a severe heat wave, one that has caused power outages and death across the region. it is aggravated by changing climate and for urban design. of bloomberg's more. paul: for two weeks now, karachi's 15 million residents have been baking in the heat wave. temperatures in parts of pakistan have been knowledge and 50 degrees celsius, 100 22 degrees fahrenheit. surrounded by concrete which stores and radiates heat, karachi has become an oven. >> we have turned karachi into a concrete jungle and green cover is hardly 5%.

paul: hospitals have been treating patients for heatstroke. keeping them cool made more difficult but frequent power cuts as the electricity grid buckles under demand. it's a crisis that ignores borders, and in neighboring india, rivers in maharashtra state are dry, wells are running empty. the pumping of this well is to illustrate how much comes out of it. a typical farm worker here earns about four dollars a day. at the moment, all they can do is helplessly watch as crops dry. >> [speaking another language] >> i will not tell my children to join this profession because they believe farming cannot be enough for our monetary survival. paul: the brutal conditions are being felt in much of southeast asia, as well. rice planting in china and vietnam starts in may, but water shortage is stalling that, and is part of a longer-term trend.

>> the next decade the temperature will degree up to two degrees celsius. rice in china output will be dropped up to 13%. thailand will export less food to the world market and that will have implications for the global food security. paul: indiapaul: , pakistan, thailand and vietnam are the world's top four rice exporters. the part of the world dodging the heat now may not dodge the consequences of it. paul allen, bloombergtechtv. haslinda: sweltering heat in this part of the world. we are keeping up watch on property stocks in china. in particular, easing measures. shanghai cutting its document ratios as well minimum mortgage threshold. a bigger chinese city following through on the government people called to support the property sector. china vanke it is up 0.3%. also keeping a watch on china copper.

copper resuming a rally along with other base metals, to recover some of last week's lump on the back of china stepping up efforts to rescue its property market, and a weakening u.s. dollar boosting demand. copper currently up 1.5%. bhp group is flat as we speak. overall, the market is in wait-and-see mode as we await that cpi print across the board in the world. of course, the fed is front and center. take a look at where we are in terms of the csi 300 index. under pressure as we speak. that is it from "bloomberg markets: asia." horizonss, middle east and africa is next. keep it here with us. this is bloomberg. ♪ avalarahhh ahhh

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