AI热潮提振新加坡经济，日圆疲软引关注

Live from Sydney I'm Paul Allen. This is insight where we dive deeper into the stories that matter with crucial context and sharp analysis. Well, President Trump demands compensation from Iran and vows to make it a condition of future talks. The hardened standoff clouding a Hormuz deal and lifting oil prices. The AI boom has companies splashing and dashing for cash. Nvidia taps Wall Street for $500 billion. Intel raising 20 billion and anthropic spending 9 billion to secure computing power.

The AI investment rush seems to be paying rich economic dividends. Singapore lifting its growth outlook to as much as 5.5% on demand tied to the tech supply chain. Also ahead, a US judge dismisses fraud charges against Indian billionaire got him, Adani and his nephew lifting a major cloud over the conglomerate's ambitious expansion plans. Also, student led protests rage on and a mineral rich eastern Indian state. The unrest now hitting opposition run regions, giving Prime Minister Modi's BJP a chance to turn the tables.

Let's take a look at how markets are tracking this Tuesday in the Asia Pacific. Will start with oil prices climbing again just below $88 a barrel now for Brent crude. So oil prices gaining as talks on the future of the Strait of Hormuz just drift. President Trump has mentioned there making new demands, including compensation for harm caused over the past half century by Iran. This is in response to Iran's demand for war reparations.

So those talks apparently going nowhere and energy prices rising as a result. Here in Australia, we do have energy stocks doing well, as you might expect, we're counting down to the reserve Bank of Australia's decision. That's in about 90 minutes. Not expecting any change to the rate today at 4.35%, but a hawkish stance is expected to be maintained elsewhere around the board. We do have the cost by posting modest gains, up about three quarters of 1% pledged to talk about on the tech side of things today as well.

We'll get to that in a moment. Japan closed for a public holiday. It is Mountain day, but the yen weakening. It's now one 5923. It's erased about half the gains now that it's achieved via that joint a US Japan intervention. But the growth minister saying Japan's spending plans are going to give long term support to the yen, even if the Bank of Japan isn't for the time being. Well, speaking to us exclusively, the growth minister, Minoru Kuchi, also pushed back against market concerns over the nation's finances.

Let's hear more. I think I would like to stress the fact that, uh, this does not represent, um, uh, retreat from fiscal discipline. And we are shifting from the rather, um, what do I say, abstract concept of fiscal consolidation towards a framework that places, um, greater emphasis on the more economically grounded and international standard concepts of fiscal sustainability and debt sustainability? All of the spending right now that's expected, including the consumption tax cut, for example, that's raising concerns which tools that the government have available and funding alternatives.

If you're not going to borrow more, we review both, uh, revenue and expenditures. And and we also review, as I told you, some fundings and special, uh, taxation measures through this. Uh, I think it's not so difficult to, um, secure ¥5 trillion. Is fiscal policy right now in Japan, which is seen as very expansionary, going to be able to achieve that goal? Japanese fiscal policy is not so expansionary as you think, because we, uh, put great emphasis on fiscal sustainability.

So it's some people say that if the Japanese fiscal policy is very expensive, but it is not true, we will, uh, stick to the fiscal sustainability. We, uh, and as prime minister approaches stress, uh, the fact that, uh, regarding the, uh, consumption tax reduction on food and non-alcoholic beverages, she won't issue a new, uh, JGB. So, so I think it's there is some, uh, misunderstanding if the hikes, rates and the yen still weakens.

How problematic will this be for the government? And could you reconsider perhaps some of the fiscal plans, which right now, I thought to perhaps be destabilising investors and market sentiment towards Japan? I would like to stress the fact that, uh, um, Japan's fiscal position is improving. Responsible and proactive public finances is a policy aimed at strengthening Japan's supply capacity and productivity, while attracting greater investment into Japan as investment in Japan and yen denominated assets increases.

Uh, demand for the yen. We need to revise I as I as I mentioned, I therefore do not see responsible on proactive public finances as a policy that leads to a weaker yen. And on the contrary, I believe it can put upward pressure on the yen. Uh, lastly, um, our aim is to achieve both a strong economy and fiscal sustainability in an intake graded manner. Please believe me, that is the essence of responsible and proactive public finances and the core of this historic shift.

Uh, Japanese growth Strategy Minister Kiichi Kikuchi, speaking exclusively to Bloomberg. Well, joining us now is Hattori Speth, the founder and CEO at Zuma Wealth. Terry, thanks, as always for joining us. And I do want to start off with the yen. I mean, the growth minister, they're saying, please believe me. Do you believe them that fiscal policy is enough to, uh, put a floor under the yen? Well, I that was that was a terrific interview.

I hadn't seen it yet, so, um, well done on that. We have been positive and constructive on Japan for quite a while now, a couple of years. And we think it's really interesting because you're finally seeing something that Japan hasn't had in ages, which is wages and inflation and corporate reform all working together. So structurally, the story there is terrific. Although the yen and the pace of the Bank of Japan tightening are the two things that you really have to watch for this story.

You know, it's it's become an interesting developed market story because of that combination of reforms and wage growth and this shift from the old deflationary mindset and with the Bank of Japan. So, like normalizing, we don't see it as restricted. And we think of Japan can sustain this cycle of wages, leads to consumption, leads to corporate pricing power leads to investment. That's how it continues to be a really long term constructive, um, uh, thesis for investing in Japan.

The yen, as you pointing out, is the wild card. Um, a strong yen is a headwind for exporters, but it could also reduce imported inflation. Um, with these recent US Japan efforts to stabilize the yen. That currency is you know, it's an increasingly important consideration for U.S. investors. But at this stage, we think that, uh, fundamentals are still on the upside. And so we've been really constructive and really, um, happy to see what the government and the reforms are doing there for that economy.

Yes, a constructive picture for Japan and a weak yen, I guess as a chief investment officer, that makes the trade pretty attractive to you. Although is there any reason to be cautious considering the joint intervention that we've seen? But I think that the thing that we're watching is, um, it is what you've pointed out, which is, you know, what's going on with the yen. So if that if that puts a, uh, a twist on, um, our outlook and what that would mean for U.S. investors, that would be problematic.

But at this stage, we're still, um, we still think that the corporate reforms that are going on there, the wage inflation, the general inflation, that the structural story there is still enough to overcome our concerns right now about what could potentially happen with the yen. So we were we would continue to, um, put money to work in that country. You. Yeah. To the to your point, I mean, with the Bank of Japan not just not doing anything, it's also not really saying anything is intervention to support the yen pretty much pointless as long as REITs in Japan