00:00Paul positivity is that how we're ending this week of geopolitics earnings and central banks. Yeah. Hi there pretty. It has certainly been a bit of a roller coaster ride hasn't it. And I think that you know the in general the Trump trip to Asia was pretty well received here. You know we've got not everything solved and definitely you know kind of big questions to come down the line. But at the moment we've got to choose and that's pretty good for markets.
00:29In general. Yes there's been a little bit of a retrenchment in Chinese markets over the past couple of days. But that's after some big gains earlier in the week when we got a lot of the news and information that was likely to come from the meeting between Trump and Xi. And I think that Trump's other meetings around the region have also been seen as a positive on the tech earnings front. Been a bit of a roller coaster ride as well hasn't it. A few ups and downs. I think that you've got a couple of takeaways that you can have from that one. The market is going to become a little bit more discerning about getting some actual kind of
00:59return on all of the investment that the companies are going to be making and looking for that. I think that you know there's still some strength there. We saw with Amazon in
01:07particular and Apple overnight. This lifted the market again giving us that positivity. I think the other thing is the debt market loves it right. So
01:15the really blowout demand for the bonds that were being sold to fuel some of this spending by Meta. So a few takeaways there Samsung in Asia as well big beat to the
01:25upside. So some positives coming out of it at the end of the week. Paul you're focused obviously a lot of the time on what's happening in Japan. The
01:33Japanese yen at 150 what 154 32 right now down a tenth of percent. So trading at around what an eight month an eight month low at the BOJ of course holding rates at
01:430.5 percent. Is this is this a bet that Senai Takechi will keep the BOJ on hold essentially. How much weaker can the yen get?
01:51Yeah well the BOJ always chickens out you know to borrow a phrase from somewhere else. They had an opportunity to hike but they haven't taken it.
02:01So we're still waiting for that next one to come through. And in the meantime the outlook for inflation is starting to slow a little bit. So will they be able to get above
02:090.5 percent which we haven't seen since like the 1990s you know. We're getting a weakening yen. We do have some pushback coming from the
02:18government. It's like the new finance minister has the phrase but she knows to start warning when we get to here it's only about level three here.
02:25So we're still some way off intervention. We have hedge funds and forecasters betting that it will go to 160 from here because as you said you know there's
02:32that that sort of subtle indication that the BOJ won't be hiking very rapidly given the change in government we've just seen.
02:39Well Paul very quickly in our last 30 seconds here. Can you just talk to us about the FX space given that we are seeing these moves in the
02:47end. What about the dollar. Are we done with the dollar weakness story.
02:51Well it depends what you're measuring it against. I think you know on the gold side the dollar has been very weak still and
02:58continues to plummet. A couple of months of gains in a row for the U.S. dollar particularly against developed markets. EMFX is doing fine
03:06at the moment. Maybe with the feds being a little bit more hawkish we will see less weakness from now.
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