AI Trade Rebounds, Jio Valuation in Focus

Asian stocks rally as the AI trade rebounds, South Korea's coffee surging 6% while oil climbs and investors brace for the Fed and Big tech earnings. Live from Singapore. This is insight with me Haslinda Amin, where we dive deeper into the stories that matter with crucial context and shop analysis. New Zealand unexpectedly holds its key interest rate at 2.75% in a 4 to 3 vote. Governor Anna Brennan is ahead on the show with more on what led to the surprise decision. Princeton Digital Group CEO Raghu Sagami joins us on the data center operator's $5 billion financing push. As I drives demand across the Asia Pacific and Joe prepares for its market debut after it's India's biggest ever IPO, the deal was subscribed more than 22 times, but history shows many of the country's biggest listings have struggled to deliver long term gains. Let's take a look at Asian markets. They are in positive territory led pretty much by South Korea. SK Hynix planning to return about $45 billion more to shareholders after profit surge. Stronger than expected, with the MSCI index currently more than 1% higher. Uh, that's of course, on top of anthropic IPO filing, which revive enthusiasm for that AI trade. We're seeing, uh, gains pretty much across the board. We have CSI 300 index up by 2/10 of 1%, and the cost be of course, right now higher by almost 6%, leading, uh, the region higher as we speak. SK, SK Hynix, surging currently by 8.5%. Meantime, traders are bracing for the Indian market debut of Jio Platforms following its record breaking IPO. The listing pits billionaire Mukesh Ambani's telecom giant against a negative trend for India's mega deals amid a challenging market environment. A conglomerate's report appears Sanjay now is live outside the National Stock Exchange in Mumbai. Sanjay, what's the mood ahead of this listing? Thank you. The mood is a bit. There is loud music. Loud band music. A group has gathered outside, right outside National Stock Exchange and there is moving crowd. All are just waiting to watch this kind of festival move to the International Stock Exchange. The headquarters are lit by the signage esophageal and there are heavy military parade security being arranged. And we are now. We could witness a lot of high profile investment bankers coming early to witness this spectacular listing. And we are expecting Mukesh Ambani. Ambani and I got somebody who led the show to arrive soon for this customary bell ringing ceremony at National Stock Exchange headquarters. Our national headquarters building said ceremony place been lit with the blue light and it is like it's it's kind of an early arrival of Diwali for the festival of lamps for Ambani family and this huge blog consecutive person. It's a client struggling to adjust this kind of movement. It's the festival mood. Haslinda Amin. That's right. A big, big day for the Ambani's. Give us an overview of the share sale. What are the expectations from the street? Husband. This is a Jio Platforms IPO. Had in it Got a record breaking of one point million applications for a $3.2 billion worth of IPO size. And they've got 78 billion, uh, demand, including from $1 billion in demand from including anchor investors, which is 75 times smaller, which which by any stretch of imagination. This is the record for a money family. And now a listing is happening after two decades from Ambani family. And that itself is a huge thing. And you know, in the grey market, it is already commanding 22% premium if they sustained this kind of premium in today's listing. And then Jio platforms will be second. Well second most valued private enterprise in India after this pattern Reliance Industries. So the chance that this is going to be historic and it is very emotional moment for the Ambani family because they clearly said it is led by the next generation, which is duly supported by his siblings. Can it really buck the trend? Sanjay. Thank you. Conglomerates report appears, Sanjay, outside the national stock exchange in Mumbai. Let's get perspective. Nihang Asia Xtra pan equities fund manager at Invesco. It has assets under management of around $2.5 trillion. That's a big question whether, you know Jio platforms can buck the trend because you've seen how, you know, it's been pretty rocky for a lot of the IPOs. Yeah, that's uh, actually I was just seeing India quite recently. And the economy is definitely showing very exciting, a lot of excitement about the geo IPO and, uh, the market activities. But what we have seen from investors perspective is top down on the market remains quite expensive. And for Jio's participation uh goes IPO, the valuation is still slightly higher as compared to the already listed peers on the India Stock Exchange. So for uh, market participants. We are yet to see whether longer term, this geo IPO can really generate good return for shareholders who participate in the IPO. The grey market suggests a 22% upside. I think is the free flow at this point is still quite limited. But as that free flow open up after the unlock of the pre IPO investors, when the liquidity, you know, free flow become more like 20% of the market cap rather than now maybe a single digit percentage of the of the overall market cap, then the dynamics could be quite different. Okay. So for now optimism in India, optimism elsewhere in the world as well, pretty much led by AI is about SK Hynix is about entropic. Is it really sustainable? Is this the validation the market needed for the rally to resume? Yeah, we have seen a lot of volatility on, um, AI related stocks in recent months. Um, I think the last conversation we had in the studio is about, you know, in the passing Lester was looking for. Show me the CapEx. Now it's more like, show me the return on the CapEx. And that scrutiny is actually getting tighter because increasingly, we see higher credit cost in a combination of, uh, higher risk free rate as well as a widening credit spread. So if investors were looking for a certain return on CapEx, um, previously, now that hurdle rate has actually increased with what's going on in the macro environment. Do you play the air space differently now? We're back to being excited about the hyperscalers, which wasn't the case maybe, I don't know, three months ago. Yeah, I think the economics or the investors attention to which part of the I spectrum has changed in the past. It's all about the pick and shovels of the I spending II CapEx. But because earnings expectations for those plays have been extended over the past few months. And now we have start to seeing some of the, um, um, sort of, uh, optimism going away. Then investors start to focus more and more on the hyperscalers, because their share price as compared to the pick and shovels have lag quite significantly. And then we see Metals Muse and etcetera. They're just increasing a lot of interest in what are the applications that through I can really be widely adopted by consumers as well as enterprises through the anthropic IPO. So certainly the attention of market participants has shifted from the pick and shovels to more of the hyperscalers and and application of AI. So, Fiona, is it fair to say that AI is driving the market right now? Never mind the macro picture, because we know from indications from President Trump himself suggesting that, you know, the war may accelerate after the midterms and we have oil prices remaining elevated, some suggesting that perhaps if the Iran war escalates, we could see all prices at $150. I think the air train is definitely here to stay is not just for this year. For the years to come. On the upside or downside. And then the macro noises will be around as well. So in a world of multiple uncertainties, uh, I think I is the only area that actually giving master certainty in terms of growth in terms of, uh, return to shareholders. So but then we need to be discriminating between the single stocks that have exposure to. How do you hedge? I think we do have exposure. We try to build a portfolio of, uh, diversified drivers. So I is definitely one of them. But in other areas like say uh, oil and energy security is a key thing. We try to play within the portfolio in terms of not just having exposure to energy producers, but also to the services company, the supply chain that actually ensure countries around the world have better energy security in the years to come. Interesting to say that we expect more volatility yet. Gold expected to be lower than 4000. Fiona thank you very much for that. Fiona Yang fund manager Asia ex Japan Equities at Invesco. Still to come. Princeton Digital Group is raising billions to expand its data center business. CEO Raghu Sagami will be joining us to discuss booming AI demand and whether Asia has enough power to support it. Keep it here with us. This is Bloomberg. Welcome back. You're watching inside the eye. Trade is continuing its rebound with Korean stocks powering gains in Asia. SK Hynix is third quarter. Results are providing fresh fuel amid optimism over anthropic CapEx plans. Hi NEX by the way the first of the memory makers in the region to report this week, April Hong joins us with more. And of course, April SK Hynix helping to lift sentiment today. Certainly. I mean, you look at the way that Cosby is extending yesterday's gains, continuing his outperformance. We see already the circuit breakers being rolled out this morning. Sky high sevenfold job in third quarter profit. So just under $63 billion. But also the 100 trillion won shareholder return plan which includes expansion of the cash dividend. And this is thanks in part to earnings but also its investment in kiosks. Yeah. But I think the kicker for investors really was how it says its demand for memory is spoken for all the way until 2029. So to some, even though you're seeing the surge in the share price, it's not even fully reflecting the earnings potential. And of course, from memory, we are seeing that as about a third of data center expenses. So some analysts have pointed out that this is the best real time read on. I demand the rest of the Asian pack also report this week, and while it's not expected to settle the debate on this, I bubble at least give us a sense of the extent in which this boom is being underpinned by genuine orders. And of course, this week and this month, indeed, we've been seeing eye under that bit of stress that's been turned around for this week. You look at the credit default swaps, for example, earlier in the month. It's such we also saw the spreads widening, but there's a bit of calm returning to eye credit in the past week. So that could also bode well for Asia. Stocks worry. What worry? It's all about demand. Hang tight. Now Princeton Digital Group has closed almost 50% of its $5 billion debt financing for its data center capacity across Asia. The Warburg Pincus backed hyperscale has completed $2.2 billion of the $5 billion funding it announced in March this year. For a detailed update on this mega funding. We're joined by Raghu Sagami, chairman and CEO of Princeton Digital Group. So you are halfway through Raghu. I mean, talk to us about, you know, the expansion plan. Where exactly and why? Uh, good to be here. Thanks for having me. Actually, in the NFL. Uh, you know, it's an exciting time in the industry. You know, we have been expanding across all our markets. Which ones in particular? Uh, you know, India, uh, Australia, Japan, South Korea. And we have already have a significant presence in Indonesia and Malaysia. So if you look at the overall in Asia, this tremendous demand for capacity across all these markets, they are driven by cloud, but also more from an AI perspective, distributed uh, training, inferencing, sovereign AI. So tremendous dimensions of growth that we are seeing across all these markets. If you take a look at your investments Indonesia seem to be increasingly important. Talk to us how important it is in relation to other important markets for you, like China and India. Yeah. So Indonesia has been an important market, particularly in the last couple of years, where, uh, hyperscalers have invested significant, uh, capacity requirement in Indonesia. And that will continue for a while. But if you look at from the next five, ten years perspective, uh, markets like India, Australia, Japan and South Korea are going to drive significant demand, driver capacity for data center. And that's driven by, uh, you know, local economy, economic growth. But most importantly, the adoption of AI in this market has been at a rapid pace. And as well as by US hyperscalers finding that these markets, you can deploy AI for global use. And that's a new use case that's emerged in the last 12 to 18 months, where now you can deploy large training models in Asian countries like these and used for global use. And that's driving tremendous demand in these markets like India, Australia, Japan and South Korea. You also divested some of the Indonesian assets. Correct me if I'm wrong. What was the thinking, the strategy behind that? You know, we entered Indonesia by making an acquisition from a telecom company which had a little bit of telco business and enterprise business, but it gave us an entry into the market. Then since then, we have significantly expanded on hyperscale business, which is really your core business. And there's a little bit it's a very small amount of business. We got an opportunity at that business, enterprise business selling into enterprises, and that's a business big deal with. Uh, you know, it was a private transaction. It was a, you know, very small part of our business is rounding error almost for us from a scale perspective. Our focus has been on a hyperscale, scalable business, which is the top investment grade hyperscalers. So in the investment in the hyperscale business as well, there are two segments. One, you have the large traditional hyperscalers like the Microsoft, the Google and Amazon, which are investment grade hyperscalers. Then you have, um, you know, new cloud providers, which are relatively, uh, high risk, um, uh, credit companies. So these are two different markets. Beauty has been focused on the hyperscale business historically, and that's what we continue to do. But the demand that you're expecting from the Chinese hyperscalers, we know that Alibaba is looking to expand capacity by up to 20MW by 2032. How much of that demand is going to come through PDG? Yeah, I think if you look at our focus has been on investment grade hyperscalers and, um, in these markets like India, Australia, Japan, Korea, that's completely, uh, U.S. hyperscalers. And if you look at Southeast Asia, which is a mix of U.S. and Chinese hyperscalers. So overall, uh, PDG is highly diversified, and we focus only on investment grade, um, hyperscalers. That leads to the point about that, uh, the confidence that we have had from the credit market that we've been able to raise the kind of capital raising on that side, uh, having high quality, uh, investment grade cash flow gives you a tremendous ability to raise capital on that side with good quality credit at good price. And we've been able to do that. Uh, $5 billion is what will end up kind of this year for this year. I'm just warning for, for Chinese players like like baba like Tencent, you know, how much capacity are they looking at? For example, in Malaysia, in Indonesia, how much are you providing for them in terms of capacity? Um, and they, uh, the order of the market has been driven by I on both, uh, the, uh, domestic, uh, Chinese, uh, model companies as well as the US model companies which are deploying around the world. So from Southeast Asia perspective, both, uh, set of players are active in this market. But it's really from a long term perspective. If you look at Asia back, uh, the large growth markets are going to come from Japan, from India, from Australia, from Korea, which is where the large part of the growth is going to come. And that's where the US hyperscalers are focused on. So there you don't find the Chinese hyperscalers for various reasons. And you see the U.S. hyperscalers driving those markets. So there's no way of quantifying the kind of capacity that will be allocated to the players like Baba like Tencent. You know, we don't have visibility on, uh, separation between, uh, you know, Chinese and U.S. hyperscalers. Our focus is to provide capacity only to investment grade companies. So we do only investment grade, uh, hyperscalers and terms that are high quality, uh, predictable cash flow with investment grade quality. That's what we have been focused on. What are you hearing from your backers, for example? And what are you telling investors in terms of potential exit plans? What are the sort of conditions that might be being attached to the financing that you're getting at the moment? Uh, there's no attachment to the financing. We're getting our role. Uh, but to a point, I think it's, uh, it's a great time in the industry to be private right now. We have long term investors, as you pointed out earlier, Warburg Pincus teachers and others, as well as, uh, our ability to execute, I think, has been a key differentiator in the market being able to attract capital. Now, if you look at foreign capital, you have equity investors and the debt, your capital, a market. Both sides are now rewarding two things. One, execution track record companies which have been able to demonstrate execution record time and again across multiple markets. That's very important. Second, that's important is to have customers which have investment grade cash flow predictability. And those terms having the right customers is become paramount. I'm going to see the last ten days of we have seen some turmoil in the market, but that's primarily contained to the new cloud providers. So if you look at from our business perspective, we have these two key pillars. It is our execution track record over the last seven years in multiple markets. Seven markets we've been able to execute two gigawatts. And then you have our customers that all hyperscalers investment grade. This combination makes it very attractive for equity investors to come in more and more. Uh, large capital is required for industry. So there's a tremendous amount of capital formation that's happened on the equity side, but that's going to be chasing more and more companies which have these two attributes execution track record, high quality investment, great contracts with customers. What are your fundraising plans? I mean, you have growth plans. I assume you want to go beyond the 5 billion that you've targeted? Yes. I think we are well-positioned having four deep kappa, deep, uh, pocketed, uh, equity investors now. So we're always getting bought interest. We talked to equity investors at the right time. Will bring in more equity for sure. Um, the timing is pretty open at this point. Given that we have good investors right now. We have raised good debt on the on the other side. So our balance sheet is extremely strong right now. And having this set of investors positions as well to bring in new investors, uh, in the coming quarters. What we've seen also in the data center industry, including from acknowledgment from IPO filings, it seems to be social environmental concerns. How is PDG looking to mitigate those risks? Yeah, I think it's an extremely important aspect for our industry to come to terms with this. I think the social licensing aspect is very critical and pretty just focused on that from early on. And, uh, and the customers. If you step back, every prime minister, president, policymakers around the world, particularly here in Asia, want I, in their countries, absolutely paramount for them to have they also recognize to make our happen you need data centers. And then there are two data centers that happen unit power unit natural resources. So that alignment is finally happening. And that is where I mean, I'll give you two examples. Japan and Malaysia. About two months ago, Japan announced something called policy. This is Green transformation Day on on six data center regions in the country. Very specific locations and the supporting industrial industry. Players like us to come in and build a decent as this coming of Malaysia for example this are the policymakers come together create a single window approval for data centers. They don't want speculators. They want making sure that people who come in and invest in Malaysia are high quality companies who execute to the promise and have good equity investors and good credit market backing so that they can invest. So these are examples where very quickly countries are coming together, all different parts of the country, policymakers, government agencies, departments to come up with policy to make sure that I happens in that country. So when people call for data center moratorium, what would you say to them? I think the countries we are very rarely are doing moratorium, to be honest, Singapore is very unique because of its various, uh, important concerns. Know the markets we have seen moratorium conversation as Linda. What we are saying is how do we get quality operators to invest. They are seeing the economic benefit of data centers, this creating jobs, high quality jobs in the whole ecosystem, not just data center, but suppliers and others who come in this thing that has to happen in those countries. So they are encouraging the builds happen in this countries, every country, but they want to make sure that they have good operators who are going to be there for long term. I'm going to make sure that their business model is not at risk. And that's becoming that differentiation is started over the last couple of weeks, where the market is getting segmented, where you have higher investment grade operators and ones which are not investment group. That's very important. And countries are going to encourage high quality, investment grade investments. And of course, they are constraints. Right now it's compute, it's energy. Might that be in the way of your expansion plan? Um, not really. If you focus on where there is power and make sure where there's good government support and local community support, we work towards that. I think we did that in Doha. We did that in India, in Jakarta. So we work with policymakers and to have a good understanding where there's good power and there's a lot of good power in Asia. There's a lot of good power in all these markets. India. Indonesia. Japan. Malaysia. Australia. So we have to align ourselves to the country's priorities, understand the regulatory frameworks more effectively, and work with the government to align our interests to their interests. I think that's where industry is going to succeed, and we've been able to demonstrate that in this market. Just one final question. Everybody wants to be a data center hub. Who's going to win? How do you differentiate the winners and losers? From a hub perspective? Uh, they're going to be multiple hubs in the world for you. Uh, I think there will be markets like, uh, Mumbai, like Melbourne, like Doha, uh, like Tokyo. These have become global hubs for AI. And that will continue. Uh, from which operators are going to they're going to be winners and losers. What's going to happen? Uh, the this tremendous capital requirement, uh, that's the demands of the industry. What is really happening is the market wants more and more quality. I mean, there's a market for junk bond. There's a market for low investment grade data center operators, but not all of them are going to survive because of high credit risk. So where the market is gravitating towards is operators who can really provide this kind of two important segment of execution and credit worthiness. We have to live with that. I didn't hear Singapore in the list. Rongo Sagami of Princeton Digital Group and our very own April Hung, of course, still to come. New Zealand central bank unexpectedly holds rates, defying expectations for a hike. Governor Anna Braman will be joining us next. This is Bloomberg. Welcome back. You're watching insight. We're keeping an eye on markets in New Zealand after its central bank unexpectedly kept rates on hold at 2.75%, sending the kiwi lower. The decision was a close 4 to 3, with three policymakers backing a 25 basis point hike. The RBNZ says tighter policy is still likely, but global uncertainty is weighing on domestic demand. Joining us now live from Auckland is the RBNZ governor and Bremen governor. Good to have you with us. I mean we're seeing sharp reaction in the Kiwi dollar. Does it concern you. Yeah. We did expect to see some movements in the exchange rate uh, at today's decision. Of course we would welcome, uh, a stronger Kiwi dollar when we see inflationary pressures. But we have to weigh that against all the other factors that matter for inflation over the medium term. Uh, so we are watching and carefully assessing how it will impact inflation going forward. Uh, coming to you expected some reaction, but it's a massive reaction. At one stage it was down about, uh, 1.7% versus the USD 1.9 versus the Aussie. It's a massive reaction because the markets were pricing in almost a 90% chance of a rate hike. The markets were pricing a rate hike. Uh, our decision is very much in line with our communication from the previous monetary policy meeting in our and what we call the OCR track, the policy rate pass. Uh, at the last meeting, we said we expected further OCR increases. Uh, but uh, we would also consider pausing in assessing the situation. And what we've seen in New Zealand is that, uh, inflation was actually lower than expected in the latest inflation data that we got last week. And in particular, it points to the fact that the indirect effects from higher fuel prices has not been as large as we expected. Uh, and we see inflation expectations being well anchored and wage growth is subdued. So the outlook for inflation, uh, over the medium term, which is our mandate, is very much in line with returning inflation to target. And we have to consider that as well as the exchange rate. But of course, the exchange rate is something we're watching carefully. The macro environment can change dramatically. We've already had, uh, President Trump suggesting that perhaps he will resume aggressive attacks on Iran after the midterms. If the Kiwi were to keep sliding and inflation rises above 4%. Might you resume your aggressive tightening, even if it means a recession? Well, the main thing to understand is that we will do what it takes to deliver on our mandate, and that is for returning inflation to the midpoint of our target range, 1 to 3%, the midpoint point being 2% over the medium term without causing unnecessary volatility and economic output. And if we look at currently, where do we expect inflation to increase over the coming months because of higher fuel prices. But we also see that the conditions for inflation falling back towards target next year are really good, especially since we have this well anchored inflation expectations and subdued wage growth. Importantly, we have done two OCR increases at the previous meetings and at the previous meeting. At this meeting, we say that we still expect to do further OCR increases at coming to meetings. So we are continuing with the strategy that we've had for a while. Uh, governor, you talked about the possibility of the macro environment shifting abruptly. Could you elaborate on that? Um, could you also elaborate on perhaps the role of AI, which could pose a risk? So what we are discussing is risks to the global outlook. And the way that we, uh, characterize it is that we say that we've seen resilience in global growth. Um, partly due to I investments in many of New Zealand's trading partners. Uh, but we also see fragility. So what we are looking at is how will these different factors evolve over the coming months? And how will that affect the outlook for the New Zealand economy and for inflation in New Zealand? So we are carefully watching global developments. You're also watching how past tightening is impacting the economy. How is it looking. How impactful have they been. Well, uh, what we're seeing is that inflation expectations are well anchored. And we're seeing that wage growth is still subdued. We're seeing that house prices, which tends to be important for, uh, for household consumption in New Zealand because wealth is concentrating in the housing sector. And house prices have been, um, moving sidelines. They haven't been increasing. And all these things means that household consumption and demand from the domestic sector is still weak. So it means that it's been hard for firms to pass on cost increases on to households, and that what we see when we dig into the inflation data very carefully. And that's also why we felt that this meeting, given that we've done we have these favorable conditions for the medium term inflation outlook. And given that we have done two OCR increases at the past meetings. At this meeting, we felt it was appropriate to be in line with our previous communication, which was to hold the OCR and still, uh, signal that it's highly likely that we'll see further OCR increases at the coming meetings. How much spare capacity is there in the New Zealand economy? While we still assess that there is significant spare capacity, that we have a significant output gap. We see that in the labor market, unemployment levels are still high. Uh, we will very carefully look at employment numbers coming out. I believe it's next week already. Um, but it is what we are also saying. It's a very uneven recovery in the New Zealand economy. So there are sectors and particularly related to export there are performing very well. We're seeing that they are contributing positively to growth. And then on the other hand we have household consumption and domestic demand still being on the weak side. And that's holding back a little bit. The ability for firms to increase prices. And that's what we're seeing in the data. And governor, to be sure that the upcoming election has no bearing on the move you made today. It didn't have a bearing on the movie made today. It's really important that people understand that we carefully assess the outlook for inflation and the New Zealand economy, and we are all focused on bringing inflation back to the midpoint of our target. That's our mandate and that's what we are doing. Might the election results have a bearing on the economy? What's your own assessment? What what risk do you see. We're not going to speculate about the outcome of the election. What do we do when we do forecasting is that when it comes to fiscal policy, we take the decisions that have been made that we know and we incorporate that into our forecast, but we don't speculate on hypothetical possibilities of the outcome of the election. Uh, I'm wondering whether you can weigh on concerns about potential return to a dual mandate. You were talking about the mandate of the RBNZ at, uh, how about the return to the mandate of price stability and employment? So we have a position that is really important to understand is for elected officials to make those decisions. And it's not for us at the committee to have an opinion on on that. So we refer that to the parliamentarians to make a decision on the mandate. Uh, governor, it is an ever changing landscape globally also for central banks. And one in focus right now is the fed. It is expected to stand pat, uh, after early in the year. Uh, you know, expectations were for the fed to keep raising rates. How much of the fed movement, uh, did you have to factor in, in your own decision at the RBNZ said. Well, we don't look at individual central banks in that way. What we're looking at is financial conditions, uh, globally, what's happening to, um, market rates internationally and how that feeds into market rates in New Zealand and then into, uh, the retail markets and how that affects mortgage rates, deposit rates and the New Zealand economy and financial conditions in New Zealand. So that that kind of assessment do some what we do. But, uh, it's not for us to to comment on other central banks, but it is a higher rate environment pretty much across the board in the world today. How concerned are you about that? Well, we have, uh, we mentioned that in the record of the meetings that we see that, uh, globally, interest rates have gone up. We also discussed the fact that the neutral interest rate globally might be on the rise. Uh, and that could have potential for neutral interest rates, um, because they're set globally. So we do factor that in and we discuss that, and we also discuss the fact that, uh, the neutral interest rate, there is a wide range, uh, of estimates for New Zealand and what that means for our monetary policy outlook. So we, we, we do follow those things really closely. And how closely are you following the Catholics within the AI world? Uh, more and more hyperscalers, uh, you know, tapping not just the equity market, but also the bond market, uh, to, to to raise funds for their expansion. How concerning is that for serving governors around the world? Well, we do see that, uh, the global growth has been rather strong, somewhat stronger than expected, and it's highly probable that it's related to high investments. And it spills over to New Zealand not because we see it here, but because we see it in some of our most important trading partners. And we also look into, of course, the financing of these investments and that some of it can be rather complex and opaque, as we describe in the record of the meetings. And we do need to consider that that could pose and pose some risks going forward if we don't see that it delivers the return as expected. But this is in the risk section and it's in the record of the meetings. One of the biggest concerns for you as you track developments in the air space. The biggest concern is what you asked. I'm sorry. Can you repeat the question? Yes. What's the biggest concern for you as you track the eye space? Well, we are, uh, watching, of course, uh, how it will affect growth, uh, in the global economy trading partners, but also how it affects financial markets. So both of those aspects are important to us. And then there is the third factor, which is the potential of AI investments to increase productivity over the medium run. And of course, if we would see, uh, higher productivity growth in the global economy, that would be, uh, a positive thing. So there are many different aspects to the IE investments that are important, and they're both opportunities, but they're also risks. On the downside. Uh, do you see risks now that we're seeing the dollar remaining pretty resilient? You're talking about the US dollar or the Kiwi dollars. Yes. Well, we're talking about the U.S. dollar. We're seeing resilience in the USD. Is that a concern for you and perhaps even central banks in Asia? So you know, our focus really on the inflation outlook for New Zealand and the way that we look at exchange rate is to what extent they impact the inflation outlook here. And for us, uh, the US dollar, the Aussie dollar. Um, there is a number of currencies that are important, and we tend to look a lot on the trade weighted index for New Zealand. And we've seen that a stronger U.S. dollar has impacted the trade weighted index. And the New Zealand dollar has weakened somewhat. Uh is something that is of concern. And we do assess how that affects, uh, inflation over the medium term. We always have a lot of short term volatility in the exchange rate. And we don't have a target for the exchange rate. But to the extent that we see it flowing through to imported inflation, it's something we will consider with a lot of other factors that also impact, uh, inflation in New Zealand. Uh, Governor Ramon, before we let you go, I'm just wondering how you were assessing your holdings in US treasuries, because more and more U.S. friendly nations are holding less treasuries these days. That's not something at all that we've been just discussing. Uh, and in reference to the monetary policy meeting today. So that's not something that I would comment on related to monetary policy. Governor, we thank you so much for your time today. Governor Braman, governor and Reserve Bank of New Zealand. Now, here's a look at Indian markets just ahead of the open stocks coming online shortly as traders brace for Jio's blockbuster listing in Mumbai. Taking a look at the market action ahead of the opening, we have the Sensex, the nifty as well as the ITC uh index all in negative territory. I've got the nifty IT index again. Uh, the uh the lag got here down about 2.5%. One stock We're watching this. Maruti Suzuki, India's largest carmaker, is looking at another round of price hikes to protect its margins. That's after reporting a lower than expected quarterly profit weighed down by rising input costs. Well, we're seeing Mizuki pointing to a higher opened by 2/10 of 1%. Now let's go over to Mumbai for more on Jio platforms. Debut. Shares traded at a premium of about 22% on the grey market late Tuesday. Bloomberg senior Aditi McIntosh joins us live outside the National Stock Exchange in Mumbai. Mallika what makes this a milestone IPO listing for India and also for Mukesh Ambani? Well hi. Good morning. Has like you said I'm reporting here from the National Stock Exchange in the downtown business district of Bandra Kurla Complex in Mumbai, where I'm surrounded by more security than I've seen on a prime ministerial visit. Definitely more crowds and drum bands as well. In anticipation of that listing, you asked about its significance and I'll make three very quick points. The joy I feel marks the realization of a 25 year old dream of the Ambani family. Now, as you know, this is the first family of business in India. Even if right now they're at the second richest stand. You recall US Secretary of State Marco Rubio, uh, flew to India last week to meet with Mukesh Ambani, specifically at the reliance facility in Gujarat. So first family of business. 25 years ago, they started a telecom business. The first avatar did not work out. This is the second avatar. And to make it work. Reliance used several tools from its playbook, but the primary one being discount pricing, uh, offering data at very cheap rates. And today, India is one of the largest consumers of data in the world. The second point I want to make is that this IPO reiterates, in some ways the India story at a time when there is so much pessimism around India. You know, during the pandemic, has, uh, Mukesh Ambani sought to raise money for the business and at that time had drawn marquee investors. Now, many of them have made returns that are subpar compared to the S&P 500. But that hasn't stopped more foreign investors, from sovereign funds to the likes of Blackrock and fidelity from participating in this IPO. So in many ways, this is some sort of confidence in the large India technology consumer story. And the final point I want to make with you is that, you know, while, you know, the country is celebrating this IPO today, uh, it also underscores the fact that Geo needs a third act, right? And by that I mean that, uh, you know, a sort of Dubai Ambani, the founder of the reliance Group, had originally thought of making very affordable connectivity. Mukesh Ambani executed that. But this IPO comes in a year bookended by two iconic US space acts on the one side and anthropic in a few weeks on months from now. So Jio needs to find a third avatar that makes it look modern and new economy, and allows it to exploit the artificial intelligence age. Because right now, what used to be one of India's sort of most modern consumer tech businesses is looking a little bit old economy in front of both anthropic and space x s. Uh, Monica, what does this say about India's IPO pipeline? It's been quite a lag. Lost a year. Hasn't been rescued by Joe. Has it been rescued by an ex? IPOs? Yeah. Has. Look, it's been a challenging year for all market participants. And there were points during the year when it felt like we might see a significant slowdown in the primary markets or the IPO business after two record years of over $20 billion in issuances. But the year has not turned out badly at all. I think so far we've done about $13 billion in primary off, as you mentioned, NSC, uh, there was SBI funds. That was Moneyball Health, and now there's this deal, I feel a few others in the pipeline. So it does look like it will still be a solid year for the primary markets. And a quick last point, we've been talking for weeks about foreign investors fleeing Indian stocks. Well, let me tell you, the last I checked, foreign investors were buyers in the primary market. So this remains to be an area of strength for India, guys. Monica, thank you so much for that. And of course that your listing ceremony is underway. Our very own Monica Doshi outside the National Stock Exchange in Mumbai. We are leaving you with live pictures from Mumbai where the listing is happening. Plenty more ahead. Keep it here with us. This is Bloomberg. Adani enterprises faces a key earnings test after losing nearly $10 billion in market value since its July peak. Investors are now looking for a return to profit, with a focus shifting from growth ambitions to whether the company can deliver on its expansion plans. India equities reporter Sabra Shetty joins us with more from Mumbai. Sabio. I mean a lot at stake here for Donnie. Yes. Yes, absolutely. A lot at stake here. Uh, we have the results today. Uh, I think it's been a tale of two halves. Uh, or at least for the ongoing second half. The first half was good. Uh, the stock was up 40%. Uh, legal hurdles, regulatory hurdles had come off. Uh, you had institutional investors liking the stock. You had buy ratings from a couple of top brokerages. I think it was working, but I think as, uh, as as, as one expert put it in the piece that, uh, that was the expectations. It is now time to deliver. And I think there are a couple of areas where investors will be looking at it very closely on, on on what happens. Um, well, there has been a build up or two to what Danny can deliver. And now I think, uh, investors are going to look very, very closely on how much it can actually deliver. The thing is, there are other risks as well than looking at how a Dani's debt is growing and, you know, there are now concerns about financing costs. Yes. Yes, absolutely. They do operate in businesses which which essentially require, require that kind of financing and debt. Uh, I think the markets also would want to see how how that goes on. Uh, we've had previous cases where, where debt concerns create, create some stock pressures on, on different groups. Uh, so I think the markets as well as looking at earnings will also closely pass on how that is being this and whether there has been, I mean, whether that be indications, uh, that there may be some issues, but I think but I think we, we will wait for the results today to have a clearer picture on that. Sabia. Thank you. Bloomberg. India equities option reporter Sarah Shetty in Mumbai. And that is it for insight. You're looking at the listing ceremony for Jio after India's biggest IPO. Horizon's Middle East and Africa is up next. Keep it here with us. This is Bloomberg.