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This is Bloomberg day Break Weekend, our global look at the top stories in the coming week from our Daybreak anchors all around the world. Straight Ahead on the program, a look ahead to the November jobs report here in the US how that may impact FED policy moving forward. Plus a look at where oil prices may be heading in an upcoming Trump administration. I'm Tom Busby in New York.
I'm Caroline Hepge here in London, where we're shining a spotlight on Poland ahead of the country's presidential election in twenty twenty five.
I'm Derek Prisner, looking at President elect Trump's announcement of new tariffs on Chinese goods.
That's all It's truly had on Bloomberg Daybreak Weekend on Bloomberg eleven Trio, New York, Bloomberg ninety nine to one, Washington, DC, Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Sirius XM one twenty one, and around the world Bloomberg Radio, dot Com and the Bloomberg Business Act.
The Day to You, I'm Tom Busby. We begin today's program with the November Jobs Report, Non farm payroll numbers out this coming Friday, eight thirty am Wall Street Time for more on what to expect and what that data could mean for the FED, we're joined by Michael McKee, Bloomberg International Economics and Policy correspondent. Well, Michael, let's begin with a look back back at October's dismal jobs report and the reasons behind that. Before we look at November.
Well, twelve thousand jobs according to the Bureau of Labor Statistics during the month of November, and that was largely influenced by what we saw in terms of the potential port strike, the Boeing strike, and the hurricanes that hit during the month, and so largely dismissed by most people.
What we'll have to see is whether we get the rebound that one might expect, and if so, how strong that is, because at the same time that we saw this extraordinarily low number, we've been in the middle of a decline in the number of jobs created each month, simply because the economy is sort of plateauing at this point. Strong growth, but most of the job gains have been made, but it.
Is shaping up to be a very different number for job creation in November. I mean we have had some good news some mixed news. Jobless claims, initial claims low, but continuing claims a sign of long term unemployment. That's in a two year high, So a little troublesome there.
Yeah, we'll have to watch that. It isn't clear why that is. It would suggest that people are having a harder time finding a job, but that may also be hurricane related. The people who initially filed claims have done so, so we don't see the initial claims keep going up. But the people who lost their jobs because their jobs sort of disappeared, they have had a hard time finding jobs because so many jobs disappeared in those hurricane areas. We're just going to have to wait and see.
Now, the unemployment rate still just four point one percent. You know, you talked about strike settles and that's good news. But we've also had retailers gearing up for the big holidays, right. Travel still strong coming into Thanksgiving, consumer spending still up, So there is good news pointing to November's numbers.
I was traveling at the beginning of the month and a lot of people were traveling the our beginning of the week last week and a lot of people traveling airports and everything kind of crowded, and that just suggests that people still have money and they're still willing to go out and spend it on things that are not necessities. And so if that's the case, we're likely to see continued strength in growth and that will continue to incent
companies who need people to hire people. The hard part is when you get to a point in the economy now, is projecting what growth is going to be like and whether you're going to need more people. It seems fairly obvious that we're going to need more help part time help for the Christmas season, and we're going to probably need more help in the leisure and hospitality space. So at least those two areas are someplace we can look for some kind of gains.
So the big questions and what right now is Bloomberg expecting to see in the November numbers and what'll it all mean when the Fed meets again for the last time this year December seventeenth and eighteenth.
Well, the forecast is for around two hundred thousand, which would be a significant snap back and stronger than we had seen in previous months. The general feeling is that the risk is even to the upside on that. The question is does the data between now and Friday continue to support that. The ism numbers we're going to get, the jobless aims numbers, we're going to get it, and the ADP numbers, if those are also strong, we'll maybe see that even revised up. The biggest question is at
this point what happens with unemployment. The forecast is for a four point two percent rate, up from four point one. The FED is watching that more closely because that isn't affected by the same things that the headline numbers are. The strikes and the hurricanes don't really impact that, and so if that goes up, then it pushes the FED
to maybe stay on hold. Right now, the general feeling is that the FED knows what's happening with inflation, and they have a pretty good idea of what's happening with jobs, and if that's confirmed by the payrolls report on Friday, then they will probably go ahead and cut once more. And then, of course, with the new administration coming in, all bets are off for twenty twenty five.
Yeah, I'll say well. Also, Powell has said in the last couple of weeks he's in no rush it's all as always data driven, but he's in no rush to cut again right away. So kind of playing it both ways or is it really just data dependent.
It's data dependent, but he is playing it both ways. What he wants is the option to have the markets price in a given at the moment until the FED sees the data that they have to work with. If the markets were to price in a cut and believe that they are going to continue that and you get this whip saw this volatility in the markets that the
Fed doesn't want to see. They would prefer that everybody stays sort of half and half until all the data are in, until they're ready to look at it and make a decision.
Well, the November jobs report from the Bureau of Labor Statistics out this coming Friday, our thanks to Michael McKee, Bloomberg International Economics and Policy Correspondent. We move next to the energy market and what plans from the incoming Trump administration. Lower demand out of China and continued geopolitical tensions may need for oil prices in the New Yar term and in the year ahead. It's a lot to consider and for more. We're joined by Alex Longley Bloomberg Oil trading
reporter Alex thank you for joining us. I want to start with you where oil prices are right now?
Well, and it's a good question in the context of when people normally hear about oil prices right and the pandemic. In twenty twenty, the main thing you'd have heard, if you're not in a day to day follower of the oil market, is negative prices. Then in twenty twenty two, the next thing you hear is one hundred and forty dollars a barrel. You've gone from being paid to take oil to pay one hundred and forty dollars a barrel. The last few months have been a remarkably stable period.
In fact, most of twenty twenty four has been a remarkably stable period for oil prices. We find ourselves now sort of somewhere in the kind of seventy to seventy five region, and that's where oil prices have been trading pretty much since the middle of October. And if you exclude the period where we sort of heightened volatility with
Iran firing missiles it Israel. Actually oil has been trading kind of in there's seventy to seventy five or sixty five to seventy range, depending on what benchmark you look at. Since pretty much the end of September, that's a remarkably stable period for what is one of the most volatile commodity markets in the world.
And here in the US we are certainly reaping the benefits. Gasoline averaging three zero five a gallon a year ago it was three twenty six a gallon. So this stability is exactly what everyone here was hoping to see.
Yes, exactly. I think we've already heard that sort of Prior to the holiday period, the Department for Transportation was expecting a record travel season. I think one of the interesting things more broadly about demand is that in the oil market, it has generally surprised to the upside. People have been consuming more oil than generally was expected to be the case.
Now.
Obviously, so far this year, global economic slowdown has hindered demand growth to a degree. But the point is oil demand is still growing, and as much as we invest in the energy transition, the fact of the matter is in various parts of the oil market, demand is here
to stay. Another thing that's hugely important when we look at the price of gasoline price at the pump, particularly in the US, but actually across the world is there's been a transformation in the number of plants that are converting crude into refined products, and that includes gasoline and diesel,
the fuels that keep the world ticking along. And that twenty twenty two period I mentioned before, when prices were exceptionally high, the world didn't have enough oil refineries really to produce the fuel that needed and that's why you saw crazy high gasoline prices, crazy high diesel and heating
oil prices. And what we've seen over the last twelve to eighteen months is a series of giant new plants come online in other parts of the world, and that means lower prices for everyone because there's more ability to produce gasoline in the global system.
And we've also seen more countries come back online like Libya, you know, i Ran, I know has had you know, pretty much a back and forth there. But also you know with the Opek plus countries, you know they've increased production, they've rolled back production, so a lot of volatility there, but bottom line, there's no demand destruction.
We are flush with oil, yes, exactly. And this comes against the backdrop of the OPEC plus countries already kind of having for several months delayed their production increases that they were planning because they want to bring barrels back to the market for precisely the reasons you say, lots of countries outside the grouping have been lifting their output.
That includes the US, where production is that are close to a record, but also a handful of others Canada, Brazil, Guyana, and lots of these countries have been able to lift output because oil prices have been so relatively high for several years now that's incentivized higher volumes of production. You
reference to Iran. That's another country where, particularly under the Biden administration, we've seen a perhaps looser approach to the enforcement of sanctions and that's meant more Iranian oil flowing to the markets. That's kept the markets well supplied. You could make a similar argument about Venezuela over recent years
as well. That combination of what we would call non OPEC supplier supply from outside the groups that are the countries that are signed up to the output cuts is partly what has helped depress prices relatively in recent years. And then the final thing is within OPEC itself, yes, that producer group has been reducing output, but not everyone
has been at the same pace. And there are a handful of cheetahs within that producer group which have been promising to return their cuts to where they should be. But that sort of holistic picture is why there's so much supply on global markets at the moment.
And OPEK has another decision later in December right on whether to gradually increase output.
Again, yes, exactly, we're expecting that decision. We'll see what comes of that. They have already begun, we've reported discussing another plan to extend to the delay to resuming output increases. I think what the market has been looking for in advance of that decision has been any suggestion that those
curbs will be delayed for several months. And this comes back to a view from the International Energy Agency, which pretty much everyone in the market is talking about, which is that twenty twenty five is going to be a story of lots of oil on the market. And again that's not because demand growth is particularly slow, but it's because supply growth is so high. Again, we come back to Brazil, Guyana, the US, the IEA say lots of barrels are going to come onto the market, and that's
giving Opek a slight headache. I think the real question for next year is how big that oversupply will be.
Okay, well, a lot to look forward to, boy our thanks to Alex Longley, Bloomberg Oil Trading Reporter, and coming up on Bloomberg day Break weekend, we'll shine a spotlight on Poland ahead of that country's presidential election next year. I'm Tom Busby, and this is Bloomberg. This is Bloomberg day Break Weekend, our global look ahead at the top stories for investors in the coming week. I'm Tom Busby
in New York. Up later in our program, we'll look at how Donald Trump is already making good on campaign val to slap punishing tariffs on goods coming into the US. But first a closer look at Poland. Its thriving IT sector has made it quote the new Silicon Valley of Eastern Europe, but it's grappling with questions about its political future.
Its ruling party has chosen Warsaw's mayor to run for president the next year's election, an ally to Prime Minister Donald Tusk and his current legislative agenda, and it comes as Poland prepares to take over the EU's rotating presidency. So what lies ahead for more, Let's go to London and bring in Bloomberg Daybreak Europe anchor Caroline hepgar Tom.
Prime Minister Donald Tusk has begun his government's bid to secure the Polish presidency in Ernest. Rafal Schaskowsky is a former member of the European Parliament and has been mayor of Warsaw since twenty eighteen. He's won the approval of seventy five percent of the centrist coalition the Civic Platform to become the party's presidential nominee, beating out opponent Foreign
Minister Radasla Sikorski in the process. Now, winning the presidency with responsibility for foreign affairs is crucially important for Tusk's administration, which has vowed to restore the rule of law and bring Poland back towards the European mainstream. Incumbent President Andre Duda is an ally of the former nationalist Law and Justice administration and has clashed with Tusk in his first
year in office. The Law and Justice Party have nominated Karl Novrodsky, the president of the Institute of National Remembrance, a head of the ballot, which is expected in May next year. Current President Duda's second and final term ends in August, but he has cultivated close ties with President eelect Donald Trump and visited him in New York in April.
Trump's return to the White House raises many considerations for European leaders, particularly when it comes to ongoing support for Ukraine in the conflict, where the Russia, Poland and NATO
member is a staunch back of neighboring Ukraine. So what lies ahead for Poland as the country seeks to determine its next political chapter, and will the country's decision bring it closer or further away from an alliance with Trump's United States is something I've been discussing with Bloomberg's Warsaw Bureau chief Pyotr Skolimowski Hi.
Indeed, so the role of the president in Poland is very often or has been very often underestimated. It's generally believed it's just ceremonial. But as we've seen over the past few years, and especially since Donald Tusk and his party took over after winning the election last year, we've seen that the president plays a very important role. He can veto legislation, he can appoint judges. He also sits on or represents Poland at NATO meetings in relations with
the UN, for example. So what we've seen over the past year is that whenever Donald Tusk tried to introduce his legislative agenda, which was basically to reverse some of the changes in the judiciary that previous government has has introduced, the current the current president, who is very close to the opposition, wielded his veto power and that was the issue where could not really introduce his legislative agenda. And obviously he's now trying to get someone in place who could help him win.
That case, and that might be Warsaw's mayor, who himself was a European politician previously in the EU. How lightly is it that Raphael Chalskowski is going to win? Does the ruling party normally manage to retain the presidency?
Normally they do. Obviously, it all depends when, when, when the when the the elections are scheduled. But in this case Rafl Saskowski is already an experienced campaigner. We have to remember that a few years ago he also he already ran for the president and he lost very marginally to the incumbent Andre Duda, the current president, who comes
from the Nationalist launch Justice opposition. Shaskowski is very experienced. Obviously, some say he may not be as experienced as necessary when it comes to security policy, defense policy or international relations. We have to remember that he's a mayor of war So and he's been running the city for for a very long time now. But at the same time he's also a previous you minister into his government in the
previous one. He also is used to be a lawmaker at the European Parliament, so he definitely has a lot of experience in this respect and the polls show that he is definitely in a popposition to to actually make it this time around.
In terms of Donald Tusk and his policy agenda, he wants to bring Poland closer to the European mainstream. Obviously the Law and Justice opposition would disagree with that. What is what is the thrust of what Tusk wants to do?
So over the last eight years, when when the Law and Justice was in power, Poland was in constant conflict with the EU. The main the main accusations they were leveled at Poland. That's time was that it's trying, it's it's it's started. We are seeing certain democratic backsliding, meaning there are changes in the judiciary that are being introduced by the by the previous ruling party that that sort of remove certain checks and balances on on how the
nation is or how the administration is run. Now, Tusca's promised to to reverse those changes to make Poland again the place where rolla law is being respected, and obviously he needs the president to do that. I mean that the changes have have gone so far under the previous administration that he really needs the president to sign off on reversal of those changes. There are also issues that he has also promised. These are, for example, changes in
Poland's very strict abortion laws. He also wants his government, his coalition that he runs, to make changes there and to loosen up those laws. And the current president, who is very conservative, is definitely against that.
Yeah, and that caused a lot of protests at the time in Poland. In terms of Poland's economy, why I mentioned this is becoming an attractive destination for investors. Why is that and what's the economic backdrop to this?
Yeah?
So, so Polish economy has been growing very very fast, and apart from the the period of the pandemic which hit all the economies across the world, it's been expanding very very quickly. We're seeing a lot of investment coming in from from across the board, but it also has a very well established and home grown sec it sector here and it also attracted a lot of investment from abroad from big corporations, it corporations that set up their
backroom operations. This has been a sector that's been growing here in Poland. Poland is also has been a very attractive destination when it comes to batteries. It also attracted investor investors from for example, South Korea from the US. It's also building a nuclear power plant quite or starting to build it. It has a lot of spending when
it comes to defense that are being planned. It's now the biggest spender as part of as a share of GDP on defense, which is also again another place where the economy could grow and where a lot of the destment are coming in for example from South Korea from the US. So there's a lot of pentap demanders. The society is still catching up with with Western standards, so it's a very attractive investment, destination and and economy is growing very very fast.
In terms of the EU rotating presidency, what might that mean for Poland? I mean, you know, it's only six months, but often the country that holds that does get some sway perhaps over the over the EU policy agenda. What do you think Poland might bring to that role.
Yes, so indeed the country that holds rotating presidency sets the agenda or helps to set the agenda.
For the EU.
Obviously it's going to be an important element time. At this point, we have Hunger, which is which is the rotating president of the of the EU, and it hasn't gone very well to to to say the least. Now Poland wants to change that. It wants to sort of present that as an opportunity to showcase it's it's its strength. Obviously, it will be a time when President Trump is going to come in, so it will need to to build relations there. There are certain certain areas where Poland needs
to wants to focus. He wants Poland wants more focused on defense and security, so it wants to make some headways in terms of where EU spends more on defense and tries to pull more of the resources to to to for investments there. It also wants to move ahead with with enlargement. So Poland has been a huge supporter of Ukraine. And we've already heard with from one of the ministers except one of the priorities for our presidency is actually to open negotiating chapters with those countries don't
want to join in, which are Ukraine and Moldova. So quite a packed agenda, but you know, sort of hovering over all of this is a US presidency of Donald Trump and that will be probably a key focus.
Yeah. Absolutely, And just in terms of thinking about the presidential candidate for election next year, there's still a process, isn't there. I mean, Donald Tusk and his Civic coalition have held their primary for their candidate, but then Law and Justice will have a candidate. To just what's the next process in terms of picking the presidential candidate and then the vote and so on.
Indeed, so at this point it seems like we over the last weekend the campaign effectively started. So we know the Law the Civic Platforms candidate, and we know the laun Justice candidate. So the laund Justice picked a fairly unknown figure Carolin Navrewski, who's a historian and he was previously or he's currently the head of National Remembrance Institute. And the next steps at this point are obviously campaign
will kick off. We're going to see a lot of campaigning, and it's quite a long campaign by published standards, because the elections are not expected until May. And obviously the key question is whether it's going to be resolved in the first round. For that, the main candidate will have to gather at least fifty percent of the vote probably unlikely,
but then we're going to go into second round. At this point, these are the two main candidates on Narreotsky, the Lawn Justice candidate and Shoskovsky, but there's also sort of a dark horse of the whole campaign, the current Parliamentary speaker, who is also very keen together the vote. So it's going to get excited definitely.
My thanks to Bloomberg's also bureau chief Pyoto Skolimowski. So where Next for Poland will be following that story as the country considers who to pick as its next president in twenty twenty five. I'm Caroline hepget here in London. You can catch us every weekday morning for Bloomberg Daybreak. Europe beginning at six am in London. That's one am on Wall Street.
Tom, Thanks Caroline, and coming up on Bloomberg day Break weekend, we'll look at how campaign threats by Donald Trump over tariffs may soon become a reality. I'm Tom Busby, and this is Bloomberg. This is Bloomberg day Break Weekend, our global look ahead at the top stories for investors in the coming week. I'm Tom Busby in New York. Donald Trump's inauguration nearly two months away, but he's already making good on his vow of tariffs on goods being imported
into the US. We turned out at Doug Prisner, host of the Daybreak Asia podcast, for more on what it could mean for big exporting economies.
Tom. In the past week, President electromp announced a new additional tarraff of ten percent on Chinese goods, beyond what's already been put in place, and Trump went on to say that his administration would impose a new twenty five
percent tariff on goods from Canada and Mexico. Now, many market watchers have been of the view that any proposed tariffs were simply a part of a negotiating strategy joining US now for a closer look as John Leu, Bloomberg News Executive Editor for Greater China, John joins us from our studios in Beijing. John, thank you so much. It's always a pleasure. I appreciate you taking time. The announcement of these tariffs came very soon after Trump selected Scott
Bessant as US Treasury Secretary. Now Bessent, we know has called for a gradual approach when it comes to implementation of trade restrictions, and he also appears to be open to the process of negotiation. How are these new tariffs being read right now in Beijing.
We don't have a clear sense at the moment, but all of the expectations that we've heard from analysis are the bees will be very careful and measured in how they respond to this tweet that we've gotten this post
on truth social again. President Trump has yet to take office, and so he's not able to actually enact these tariffs, and so I think in the meantime, the Chinese government will be trying to communicate with his administration, with officials around him, trying to find what a negotiating room there may be, and looking not to overreact and make things worse.
One of the things that was a part of that post Trump's concern about the transmission of illegal drugs out of China entering the US. He cited fentanyl in particular. So it looks as though we're in a realm now that's almost separate from economic issues, right.
It's true. I think tariffs are a tool that President Trump will use to achieve various differing objectives. Fentanyl has been an issue that's he's been very focused on. He was in his first administration. This was an issue that he brought up with Hijing Ping Again, President Biden has brought this up with the Chinese government as well, and so it's not surprising that President and Trump would be harping on this now that he's getting ready to get back into office.
So if we look at the idea of negotiation, as you understand what leverage does China have over the US at this point.
Well, the trade relationship is one that gives the US the more powerful hand as it was because China is by far exporting much much more to the United States
than it is importing from the US. Well, one thing that we've seen Beijing do is take measures that would it seems allow the government to put restrictions on the export of some strategic medals to the US, to Europe, to other countries, and so that potentially could be one lever that Beijing pulls to try to gain some leverage in that negotiation.
Now, you and I in the past have talked about the vulnerability of the Chinese economy right now, given how weak it is, and you just mentioned that the US essentially has the upper hand. Should Beijing be particularly concerned given the set of given circumstances that we're talking about.
I think Beijing is very concerned, given how much reliance the economy has on exports and how big of an end market the United States is. I think that Beijing actually probably has a little bit more time than it might first seem that's because before President Trump takes office, I think we're going to see a lot of frontloading of imports from buyers in the United States trying to get their goods out of China before those Trump tariffs
come into effect. And so I think in the last couple of months of twenty twenty four you might see a real jump in Chinese exports, in turn a lot of for the economy. In the last quarter.
Is there a way that companies based in China can create a bit of a work around maybe loopholes that some of these tariffs inadvertently create. Maybe you do a percentage of production on the mainland, but then transfer to a country to finish the production process that may not be in the crosshairs of some of these tariffs.
So this is what makes the twenty five percent tariff that President Trump announced on Mexico very interesting, because we have seen quite a number of Chinese companies setting up operations in Mexico doing what you said, essentially doing some last bit of the manufacturing process in Mexico and then exporting that good into the United States, thereby avoiding the tariffs that are in place on Chinese products. We've seen factories set up in Southeast Asia and other countries to
take advantage of the same loophole in the tariffs. And so it would not surprise me if we see President Trump going after these difer channels by which Chinese exports have been getting into the US.
John, you and I have talked about the export controls imposed by the Bided administration on certain parts of the Chinese economy, especially where high technology was concerned. When you look at the choices that the incoming administration has export controls versus tariffs, let's say, how do they compare.
I think tariffs are a very blunt instrument because they have the ability to impact lots and lots of different products all at once, especially in the way that President Trump has talked about imposing them sixty percent tariffs on all Chinese goods. That would hit everything all at once. I think the difference the question is how much priority does President Trump put on denying Chinese access to advanced technology. That is something that was front and center for the
Biden administration. President Trump during the campaign at talked more about shrinking the trade deficit that he did talk about limiting Chinese access to chips, for example. So then when there is ultimately a negotiation, I think we will find out then how much value President Trump places on denying Chinese access to technology.
So obviously this is Trump's second term. He has somewhat of a relationship already formed with Chinese President Chi Jinping. Is that a good thing or a bad thing?
I think President Trump feels like those personal relationships are going to help him get a better deal, and the way that he speaks about President Xi Jinping in very respectful terms, talking about their friendship. It would seem that he wants to have a personal relationship that he can rely on to try and get a deal through. Whether or not that actually is fact in case on the ground, I think we have to wait and find out.
And this is just the beginning of the process. John, thanks for joining us. John lou There, Bloomberg News Executive Editor for Greater China, joining us from our studios in Beijing. We moved next to crypto recently. As I'm sure you're well aware, Bitcoin reached all time highs as the market embraced the support for crypto from the incoming Trump administration. Now, the overall value of the digital asset market has surged by about a trillion dollars since the election on November fifth.
A closer look now at the crypto landscape with our guest Peter Chung. He is head of research at Presto Research. He joins us from Hong Kong. Peter, thanks for making time to chat with us. Let me get your reaction to the fundamentals that have been driving the price action in a bitcoin lately. Give me your assessment on what's driving this rally?
Yeah, I think this rally has been happening in two parts. First is you know, right after the election, when bitcoin was at around sixty seven sixty seven thousand dollars, it was in reaction to the election result, and it is part of a broad macro reflation trade, so that raised the big coeen price from sixty seven thousand to around ninety thousand. And the second part is also related to Trump,
but more crypto specific. I think the market is becoming more confident on Trump delivering on his pre crypto campaign promises based on the chatters around the key cabinet nominations, so I think they gave the market a confidence that the Trump has every intention to deliver on his campaign promises.
There seems to be two parts to that story. One the idea of friendlier regulation, and the other seems to be this pledge to set up a national bitcoin stockpile. Which do you think is having a greater influence.
I think more lately it's the idea of bigcoin strategic reservoir stockpile. I think the recent cabinet nominations and especially the Scott Besson who just got nominated, I think he mentioned that everything is on the table with regard to big coin strategic reserve or stockpile. So the market is increasingly more confident that it could happen. I think the Polly market is assigning something like a sixty percent probability to that.
Yeah.
The other thing that we're hearing is that the transition team has been talking about the possibility of creating the first ever White House post dedicated to digital asset policy. It's kind of stunning. You were talking about everything that's happened since the election. I think that a lot of the US ETFs that invest directly in bitcoin have amassed about more than one hundred billion dollars in assets since launching back in January. Is this a trend that you expect to continue now?
Yeah, I mean I think so. I think with the ETF, it basically has paved a way much easier access for the institutional investors to come in and make a long term investment. I mean, big COUNTF has been around for actually two years, but before it was a futures based ETF, which isn't really included for the long term investors. With the introduction of a spot ETF at the beginning of the year, which is far more efficient in terms of
attracking the underlying asset. You know, that removes a lot of kind of entry barriers for many of the long term institutional investors. And now that you know the new president elect is giving far more credits to this asset class with his pro crypto policies, I think many of the long term institutional investors who were a bit heads stunted prior to this event, I think is more willing to take a look at this new emerging asset class.
So pro crypto policies in the US, maybe we understand that to mean less regulation. Is that what is happening where you are in the Asia Pacific? I'm thinking, whether it's Hong Kong or Singapore, are you seeing a move to deregulate the crypto market A bit?
Yeah, I'm a little heads stunted in using the word deregulation to describe what's happening right now. It's more I think the more accurate way of describing is a regulatory clarity, because I think previously what was happening was it was more policy driven approached by the SEC through enforcement actions, and some of them were you know, Ukraargia was not very lawful and also very vague guidance from the regulatory agency.
Going forward, you know, I think there's going to be more clear rulemaking by these regulatory bodies in the US, and I think that's going to have an impact on the jurisdictions in Asia as well. I think many of the governments in Asia has been kind of looking at the US and using that as a benchmark for their
own regulatory framework. And now that the US is more in a position where they are willing to provide further regulatory clarity through legislative process as well as, you know, by having SEC who's more willing to work with the crypto industry, I think that's going to have an impact on the many of the governments in this part of the world.
That's Peter Chung, head of research at Presto Research, and I'm Doug Krisner. You can catch us weekdays here for the Daybreak Asia podcast. It's available on Apple, Spotify, or wherever you get your podcast. Tom.
Thank you, Doug, and that does it for this edition of Bloomberg day Break Weekend. Join us again Monday morning at five am Wall Street Time for the latest on markets overseas and the news you need to start your day. I'm Tom Buzzby. Stay with us. Top stories and global business headlines are coming up right now