♪ haidi: welcome to "daybreak: australia." i am haidi stroud-watts ends in a emarketer just come online. paul: and i am paul allen. big tech drugs wall street away from all-time highs as investors await nvidia's earnings. triggers starting to speculate whether the fed's next move is a hike, not a cut. haidi: we and will works are among several companies reporting this week. paul: u.s. warning allies that russia could deploy a nuclear weapon into space as early as this year. let's look at what is happening in the markets, we have just opened for trade in australia. early going. scattered open. we are off by 0.25%. we will be watching a lot of stocks today. woolworths was out with earnings. the ceo is going to retire.

he didn't have a great experience on local media this week, we will talk about that later. rio tinto is one to watch as well, impacted by falling iron or prices. national australia bank had a trading update. although stocks are somehow dumb. we haven't got -- all those stocks are somehow down. the aussie dollar at $.65 u.s.. let's see what we have in terms of nikkei futures. we are keeping a night on rings because of the nikkei cruising at that all-time high it said in december, 1989. futures suggesting is going to be a fairly quiet day. a bit of weakness in the yen relatively speaking, just dipping below 150. oil is an interesting story.

. some competing pressures. tension in the middle east, the opec+ curbs. but very weak demand out of china, haidi. haidi: it's hard to underestimate how much money and perhaps sentiment is riding on the numbers from nvidia. options similarly almost $200 billion in market value riding on the earnings report. prices for short-term calls implying that a 10% move in those shares could potentially see quite a bit of volatility. this is the picture as we look at u.s. futures, it was really big tech dropping and dragging the broader market lower from that all-time high on the back of some of the nerves ahead of the nvidia numbers on wednesday. really looking for confirmation that there is some substance behind these ai boom expectations. nasdaq futures looking pretty flat at the minute. there are still ongoing concerns about the latest data, and what

the fed speak really mean for the direction of the fed going forward. a couple of names we are also watching what it comes to reallocations within u.s. markets, amazon named to the dow industrial average, we are seeing a bit of a pop and amazon in post-market trading after it was allocated. to the dow jones industrial average. also seeing some other names, uber replacing jetblue in the dow jones transportation index. we have seen a bit of a selloff in walgreens and boots in the overnight session. let's get more from our chief rates correspondent in asia and mliv contributor, garfield reynolds, who joins us now. so much this week is riding on whether we will get a reconfirmation in the nvidia numbers, that investors are on the right track by backing this ai boom garfield: that's right,

it is somewhat concerning to think that even if nvidia's numbers and up well, we are so reliant on one company for the direction of the world biggest stock market. we are used to be more about five or six companies. but it is seen as the poster child for ai, and with the rates high, with concerns about the impact of that on various sectors of the economy, and also concerns about some parts of the global economy showing weakness, you really need something like ai to change the game and, therefore, to drive sustainable gains for a market that is close to unprecedented levels on a nominal basis, even on the valuations basis, at among the highest levels we have seen across history.

paul: and another wildcard to throw into the mix here, i spoke to wind gusts yesterday who described u.s. markets as unsinkable. now we have some commentary suggesting that maybe the fed's not going to ease and we could see a hike. what is the logic behind this? garfield: the logic behind that is, you know, powell did actually say that our base case is that we will be able to gradually ease rates later this year provided the data give us confidence that inflation is going to return to target in a timely fashion. but he flagged that if the data doesn't give us that confidence, he would not will out a hike as well. and the data has kinda been moving in that direction. we have had every acceleration in ration. we have got pretty strong demand . we haven't had that fall in

consumer inflation expectations that the fed would fully like to be. and in particular, that speculation around rate cuts even after it is called off has given us some pretty loose financial conditions. so i you could see another strong jobs report and some concerning inflation numbers before that could happen. but there are very few members of the fomc that would be ruling it out. you only need to look at what happened the last him inflation was this high. there, the sad cut at the first set of economic trouble and then ended up having to hike again. they have made it clear that this time around, they would like to hike too high and then cut rapidly when they are fully sure, rather than have the risk of going down and then up. so if they have got a concern

that the economy is too hot, it gives them every reason to go higher. paul: bloomberg mliv contributor garfield reynolds there. the u.s. will unveil sanctions against russia this week following the death of opposition leader alexei navalny. president biden blames vladimir putin for the death of navalny, who had been imprisoned in the arctic. >>. >> i told you we would be announcing sanctions on russia. will have a major package announced on friday. paul: bloomberg's editor michael heath joins us now. michael, there is already a lot of sanctions in place against russia. i can't imagine vladimir putin is quaking in his booth at the prospect of more. michael: know, when russia invaded ukraine -- the two year anniversary of that is monday -- there were swaths of sanctions that measures against russia and senior officials there and the expectation was that it would

really damage the economy there and that it would be some of the biggest round of sanctions we have seen. and there was a period of adjustment in russia, but it really does look like they have managed to retool and removal is there economy where they can sanction under these issues. -- where they can function under the sanctions. the only way that you can target russia where it hits home is through senior officials, a lot of them have children and money abroad. you need to target that. it is quite difficult to explain, to argue, what are you targeting children? while they are patriotic at home, their children are going to oxford and all these things. as for those sanctions, russia is still selling oil. if russia can still selling oil, it can keep financing itself. haidi: and financing the space program, it seems, the bloomberg school is saying that we could be sooner rather than later, a nuclear weapon from russia is based.

michael: in the past when people have gamed out how we could end up in another serious war, potentially world war iii or something, they sort of endive coming to this conclusion that it would be generated from war starting in space. russia doing this unfortunately, the more we see from russia, it is always this saber-rattling to seek attention or something like that. part of me thinks it's almost -- it's not north korea or going down that path, but it looks for these pinch points where it can cause trouble. sort of thing. it's really concerning. the reason i bring up north korea is, i was just reading earlier this week that large parts of russia, the heating is not working. they are relying on. -level of heating -- relying on soviet level of heating. and now at nuclear weapon in space, it's distorting. autocratic regime.

it is worrying, and something that ought to be a concern to not just the west, but the world in general. paul: let's focus on the war in gaza a u.n. resolution calling for a cease-fire got struck down. what happened? michael:? michael: algeria put forward a resolution for a cease-fire and it is actually not that different from what the u.s. is apparently drawing up as well, but calls for an immediate end to the war. it also calls for the release of hostages and for no attack on rafah, the last area of gaza were a lot of civilians obviously have solid shelter and which is the real cause for concern. the u.s. vetoed it, britain abstained, everyone else reported. the u.s. said it did so -- everyone else supported it. the u.s. said he did so because they are trying to work with the egyptians and the qataris, trying to come up with this pause in fighting, a pause to

try to release the hostages. it said the u.s. was -- you and resolution hindered that case. in the u.s. is working on its own which would be a pause, and hostages released, and also requiring that israel get civilians alarms way before any event have been rafah. haidi: the diplomatic positioning on this conflict is one that you would expect the g20 foreign ministers would have at the top of their agenda during their meeting in brazil on wednesday but, we are hearing that it could be so sensitive that it gets removed from the agenda which makes people question the relevance of the g20. michael: exactly right. the same with ukraine. quite unusual. you could say with israel and gaza, the divide, the civilian casualties, all the suffering. but with ukraine, you find a lot of the global south is pathetic towards russia, the idea that russia is leaving an anti-imperialist bloc what it is invading other countries is

extraordinary. but it is important for these countries to have dialogue. when they get to the stage when they put things out of the agenda, and just leave them with economics and that is fine, but these geopolitical issues do impact the economy as well. . you can't just pretend it is not there. it raises the questions about its role going forward. haidi: bloomberg editor michael heath there with a political wrap of the headlines. coming up, a closer look at the earnings season in australia, jp morgan's head of equity research will be with us with insight into those recent beats and misses and guidance. this is bloomberg. ♪

haidi: 15 minutes into the start of calm in sydney. a big week in earnings season,

almost 100 companies reporting. one of them is rio tinto. we are off by 3%. at the moment, a bit of news flow. rio tinto signing the biggest renewable power deal. that is. another narratives we are watching. santos, full-year net income mason estimates. income coming in at $1.4 billion, down 33% year on year, with a final dividend per share of 17.5 cents. a bit more than expectations. we are also watching woolworths. . a big leadership change. it has been a difficult week for the woolworths ceo. he tendered his resignation and will be replaced by amanda bardwell. the retailer has been in the spotlight for much of the worst

reasons amidst the cost of living and inflation pressures, his margins catching the spotlight. his successor currently heads up the loyalty and e-commerce divisions at woolworths. we are that as we continue to watch the banking numbers for the first quarter. cash profit at 1.8 billion aussie dollars, one of the few outperformers in a cautious start to trading in asia. and a big week when it comes to reporting season. over 70 farms on the australia asx 200 total in market cap of 691 billion dollars, they will be reporting this week. let's get more analysis with a jp morgan head of equities research. thanks for being with us. it hasn't been a bad season so far. jason: jason: we started with a bang last week and there were fantastic results from seasonal retailers, another of companies. since then we have hit some turbulence. still a good start, but we have seen some signs in certain

sectors of a bit of weakness -- communications, services, and a bit in the mining sector. it's confirming some of the negative expectations a few had on the way in. haidi: the narrative is always interesting for the stalwart financials and banks, and to some extent, there is the argument that perhaps they don't get as much love as fundamentally they should. where do you see the opportunities here? jason:? jason: the banks are performing tremendously well and often the view from offshore is that australian banks are too expensive that, it is a better idea to short them. but that tends to be not the case. the consumer in australia is still very well-capitalized, by and large, they are well-capitalized. the mortgage crisis is passing without them falling off it, which is important for the context of the underlying picture. they are trading at full levels as a result of that. we see our news growth

opportunities. health care had a difficult 2023, but now there are opportunities. that being said, for health care so far, the earnings season has been patchy. not the best season to this point. but our view, we are looking at the next six to 12 months. discretionary is not a huge sector in terms of market cap, but it is a sector that has displayed that resilience of consumer demand and showed the quality of some of the companies in the sector. i think that really stood out and you are seeing margins better-than-expected. management able to manage a moderate pricing environment with the infective cost controls/in terms of financials, we had the big news yesterday with anz getting the green light to take over suncorp. consolidation in this space is unusual in australia. do you expect to see more? jason: this is obviously a huge deal that took a lot of time to get through and it gives them a greater share.

. hard to see a lot more happening. we have seen in the past, originals, and speculation regarding regional banks. obviously we have seen it within certain parts of the financial sector outside of banks, some consolidation happening. but when it comes to the big four, given the challenges banks have found in going through the process with suncorp, hard to see more consolidation in that area. as you move out of the banks, that is still an area where there might be some prospect of consolidation. paul: we will hear from rio tinto later on, obviously really exposed what is going on with iron ore and with china demand. it what are your expectations for the space? jason: the steel demand picture has been more robust than expectations. that has put us in our view around the miners that certainly for the bulk names, the picture is more positive on the down view on china as a whole.

but there are problems in terms of costs, lower returning projects. it's been a difficult start to the year for the mining sector at large. but large miners continue to see cost control. there is still the volume mentality and discipline that seems to be working. and the trading levels don't represent how strong free cash flows in the context of where the mining process stands today. we are still constructive around the sector but understand there is a lot of concern about where the economy in china will go from here, does it hold up as policy stimulus comes through or is there a risk to the downside as we see further weakness in housing undermining the steel demand picture. you covered haidi: broader asian markets at points in your career and it is interesting that

australia is often seen as a domestic-focused market and perhaps not as exciting. how do you compare the value and opportunity of australia to the market darlings at the moment let japan, korea and india? jason: if you're looking for income, clearly we have a high dividend yield in most markets. that has always been a point of attraction for certain investors . what is interesting this year is that nominal growth in australia it looks like it will be very strong and stronger than a lot of developed markets and out of the emerging markets, which to us is a really important measure because it tends to drive underlying our news birth. therefore, we look at sectors that are in the resilient position in terms of their customer base and business model. we see a positive picture in terms of australia. it would sit for us probably as neutral, but certainly not a market in the past but has been

seen as more of an afterthought or often on pump underway. we tend to tell a lot of international inspectors that we speak to, we feel that australia is probably under held certainly across it in sectors and we think that if you look at the long sweep of history in our economy, you generally tend to get resilient economic outcomes, good nominal growth and good earnings plus dividend. paul: one of the things we are looking at today is the narrative that perhaps central bank tightening isn't over and you might see one more from the reserve bank of australia as well. it was a good year for the asx. despite the tightening. can that continue? jason: where we sit in terms of valuation of the index, it is currently off what evaluation is. but we are thinking up in the context of valuation is some easing on the rates front. a rate increase would put a? over where we stand and the minutes pointing to that have

led us to think that we're are in a situation where we might see a rate increase. but what we are seeing is earnings upgrades and that feeds into our model. so it probably upsets one another, but i would say that if the rba is back with one or two more rate hikes which would be a big surprise in the context of expectations a month or so ago, then that puts a question mark over what we saw last year. yesterday sort of put a? over that. paul: jason steed, head of australian equities research at jp morgan. even get a roundup of all the stories you need to know to get your day going on today's edition of "daybreak." terminal subscribers, go to dayb . it is also available on mobile, in the bloomberg anywhere app. you can also customize the settings as well for the news on the industries and assets that you care about.

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paul: you're watching "daybreak: australia." some of the corporate headlines we are tracking, citigroup has raised its ceos pay about 6% to 26 million dollars. it awarded her 1.5 million dollars in salary and 24 point $5 million in stock-based incentives and cash incentives. the increase comes after she initiated what is billed as the largest reworking of citigroup in decades to make the firm more competitive. last month the bank said it would cut 20,000 rules in its bid to boost returns. bloomberg has found that this regulator found a whole in the accounts of zee entertainment, 10 times more than initially estimated by savvy investigators.

the issue is a blow to the company less than a month after merger collapsed. china has two mixed engines have frozen the accounts of a major quantitative hedge fund for three days, after a company dumped $350 million worth of shares within a minute on monday. the shares disrupted normal trading order. the ban is the latest move by regulars to reverse a slump in stock that is not entering a forty-year. many more to come on "daybreak: australia." stay with us. this is bloomberg. ♪

haidi: we are half-an-hour into the start of trading and just getting data. this is the westpac lending -- leading index. still holding pretty close to unchanged, coming in at 90 703 that with the six-month annualized growth seeing a decline of about 0.25%. a little bit of weakness when it comes to dwelling approvals and to commodities on the industrial products side of things. let's look at how this is feeding through to the broader picture. pretty muted trading. asia stocks are set to follow what we saw in the u.s. trading session, traders waiting big tech prospects almost all of which are based on and videos highly anticipated earnings. that is driving wall street away from all-time highs. aussie stocks are off by four

tenths of 1%. a flat trading session in new zealand. singapore nikkei futures signaling a bit of weakness as we see japanese stocks falling with that december 1989 record high still in sight. we'll weakness across japanese insurers, the worst-performing index in the topix. speaking of, parts of this market suggest that as we await for the nikkei to hit that record high, that some of the value names in the topix might start to outperform more so than the nikkei, despite being the less loved part of the japanese markets. so much of this remains what we get from nvidia and that will play into a lot of those ai ship names trading in japan. paul: tech names will be in focus as the nikkei closes in on that record. our next guest remains very bullish on japan. $55,000 taggart on the nikkei

225 -- target on the nikkei 225 by 2025. during this is jesper koll from monex group. the 1998 record over 35,000, you see the nikkei blowing through that. where do you expect to see the biggest gains? jesper: the japanese market is not the biggest market, is the benefits of a decades long restructuring, lowering breaking, having superb operational efficiency. that is what will drive japanese visibility of earnings to continue to grow and as a result of that, earnings growing 35% over the next couple of years. therefore, the nikkei going above $50,000 towards 55,000 is not an absurd forecast. paul: we are watching the bank of japan for potential

tightening, or at least in normalization of rate. could you see a scenario where tightening could end up stimulating the japanese economy especially for household that have a lot of cash saved up? jesper: you put your finger on the post. the pan getting away from zero interest rates which has been with us for almost one generation, nudging rates higher to begin to normalize liquidity in the front end of the market, that is a positive, number one, for the banks, number two for the japanese insurance companies, and left not least, they will benefit because finally those deposits will earn some interest. haidi: but there is a bit of squaring up to do, to think about record highs in japanese markets, a continuation of this rally when the economy has moved into recession. is it because of the warren buffett style of trade that the

japanese companies are in focus and they are making most of their money overseas? jesper: you make the important point. number one, the decoupling of the japanese duck market from the japanese economy will actually widen further. pink about it, the economy now, 40% of japanese live off their patients, not off implement income, a state pension. it doesn't benefit very much from the stock market going higher. but the key point is corporate japan has got that restructuring and the global footprint and the eagerness to actually invest in new for-profit enterprises. look at nippon steel buying u.s. steel. this is the japan we want to see, a japan that expands overseas, where the young generation of ceos is taking bold decisions to grow for future earnings.

haidi: but how does the young play into this? and that feeds into, along with the recession risks, what we expect with the bank of japan. we expect policy change and it impact on how the urine trades will have a meaningful impact on how japanese equities trade? jesper: the arithmetic and the econometrics is very simple. for every ¥10 of yen weakness, you are adding a windfall of 10% to japanese corporate profits because the overseas gearing is so very high in japan. oh, yes, the exchange rate does matter, which is why i am personally more focused on the domestic plays in japan. that starts with the banks and goes to the relisted companies and to anything that looks and focuses and makes money from the japanese domestic consumer here recovering. focus on the domestic japan rather than the export japan. paul: we are awaiting nvidia

results and the whole idea of advanced chips and artificial intelligence a key theme at the moment. we have japan spending big in this space. which companies look like a buy for? jesper: when you look at a company like nec, fujitsu, and one of my favorite top picks in japan is ntt, the telecommunications giant. huge dividend. and a new ceo who will be a huge backbone beneficiary of the ai revolution. haidi: jesper koll, always great to chat with you, export director at monex group, as we continue to watch for that december 19 89 record high, in sight for the nikkei. you can watch us live and catch

up with our past interactive interviews with our interactive function, tv . join in on the conversation as well, you can send us instant messages during our show. it's for bloomberg subscribers only. do check it out at tv . ♪

paul: as we have been discussing, it's probably the most highly anticipated earnings report this week, nvidia will be posting results this wednesday after the bell in the u.s. the s&p 500's top stock this year as it rides the ai frenzy, and is now the third most valuable company in the u.s.. nearly $200 billion in market value at stake as investors see if one of the biggest stock run ups in history was justified. options markets implying a 10.6% move in the stock price on the session following its earnings release. that could result in one of the largest single-session swings on record. japan isn't bulking on its most ambitious chip development program to date, looking to leverage u.s. concerns over supply chain security and return to the game it once dominated. >> the foundations are being laid for the revival of an industry japan once dominated.

in three years term, it is intended that there will be an advanced chipmaking funder on the site producing cutting-edge chips. the current manufacturer is concentrated in the handful of countries. >>. >> that are geopolitical economic security factors involved. survival of the nation, japan needs to be a global player with technology. we can clearly demonstrate that with semiconductors. paul: as electric vehicles, it ai and advanced weapons development were demand, the u.s. is encouraging allies to shore up supply chains and reduce risk of overreliance on china. >> because of the geopolitical risk between china and taiwan, we are not expanding in china. we are building a large factory in thailand. our presence in germany and japan is increasing. paul: you new macron been operating here for some time, and now with government ramping up, the vision is to build their own version of surkin valley.

. tsmc has a billion-dollar factory gearing up for production and another one in the pipeline. the japanese government is pouring $28 billion into its revival strategy, and this city is experiencing a property boom as a result. >> companies and manufacturers have been moving overseas and now we are beginning to see a trend towards a return to japan. it's exactly the kind of business development that will give young people the opportunity to make different choices in their hometowns. paul: at the moment that japan has a shortage of skilled workers to move in once the construction crews move out. the hope is build it and they will come. paul allen, bloomberg. haidi: one of those firms in japan is homegrown venture rapid us, hoping to start selling chips in 2027 from a starting point of zero.

our guest joins us now from tokyo. what is the biggest challenge for them to be able to get to this ambitious goal? masahiro: regarding rapidus, they don't have experience. if we look at, for example, samsung or intel, they have extensive experience, but, for example, samsung suffered from the low production and probably made a loss last year for their foundry business even though they have extensive experience. probably why reason why samsung had difficulties is because they went into three nanometer technology as well as it a new technology. and rapidus at this time is trying to probably produce similar things without the

experience, so that should be the biggest challenge for rapidus at this point. paul: so what will be required for rapidus to not just succeed in two nanometer development, but survive as well? jesper: regarding rapid us, probably we might have to be a bit patient and may be time or money will be necessary. at the initial stages, rapidus should be facing low production as well so they will make some losses. in that case, maybe the japanese government may have to keep funding rapidus. and then probably rapidus can take some time to build a new technology. it may take a few or more years. but as time goes by, rapidus will be able to establish some experience and will migrate to

the 2-not technology. once they get to that point, it may be easier for them to further advance to the 1.4- nanometers technology. so time will be necessary for rapidus. haidi: bloomberg intelligence analyst masahiro wakasugi there. look at some political headlines, analysts from nomura and barclays expect the bank of thailand to resist calls for any off-cycle easing to support the economy, despite growing political pressure. the prime minister has called on the central bank to hold an unscheduled meeting to cut rates since the data indicates the nation's economy is in crisis. they were not scheduled to hold a regular meeting until april 10. a pakistani political party can says it will join a coalition led by gerard sharif to form a new government.

it aims to keep rival imran khan out of power. the new administration will have to shore up the economy and negotiate a new loan with the imf after the current program expires in april. more ahead here on "daybreak: australia." this is bloomberg. ♪

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the singapore air show continues. the exhibition showcasing a shifting competitive environment for aerospace ants due to supply chain challenges ahead. our correspondent is that the event and joins us now. eva, what are we hearing from these companies? > guys, it's the second day of the event in the lion city and back in full force this year, but based on conversations, you really get the sense that supply issues continue to dog the aviation industry. airlines still face pilot shortages. carriers are expressing interest in known pilot operators, it made not be a thing -- may not be the thing that passengers welcome but it would help airlines reduce their backup staffing needs. we also see jet shortages which could mean increasingly that airlines are turning to china as

a possible alternative. we are hearing one of the strongest endorsements yet for the chinese jet maker, the ceo saying not to underestimate the company, could be a force to reckon with. and as we see supply gaps, airlines have been struggling to fill demand and that has meant some routes have just not returned. and cities have just dropped off the international flight network. it is the supply dynamic. that is the backdrop against which the conversations at the airshow are taking place on. paul: you have some more big interviews lined up today. what is coming up? avril: absolutely. we will be talking all things aviation, including on germany's company which has big plans for the philippines. we will also be talking to the chief of this company to find

out about growth plans and what it means for potential jet orders. we aren't just talking commercial aviation, will also be talking about business jets, not just because we are tracking the flight paths, of taylor swift as well as elon musk but because we want to find out where demand is headedas the pandemic-induced- boom fades. one gap is in sustainable fuel, for supply gaps. we will be talking to honeywell to find out how their technologies can help to fill up that gap. haidi: bloomberg's a avril hong at the singapore air show. she will be back for some of those conversations throughout the course of the day. meantime, let's look across energy markets. and it comes to wti at the moment, new york's crudest trading at $77.22 a barrel,

pretty steady trading. signs of a tightening market still with concerns over lackluster demand. chinese demand picture continues to weaken and all are creating a lot of uncertainty. the push and pull when it comes to supply and demand continues for germany. paul: breaking news on the bloomberg terminal out of japan, trade numbers out of the month of january, we have exports rising 11.9%. that is a bit better than expected. the expectation was for an increase of 9.5%. imports contracting by 9.6%. of course, japan is a very oil dependent company. the trade balance adjusted, 200 ¥35.3 billion, a surplus. we were expecting a trade deficit. so a big beat for japan's trade numbers for january.

. the yen right now is hovering below 150. let's look at how we are tracking on markets in australia. we have the asx a little bit softer at the moment, off by 0.4%. we are watching a number of companies out with earnings including the oil producer santos, we had a full-year profit myth there. we will get rio tinto reporting after the bell coming out of london. national australia bank was out with the and update -- out with a trading update. will what ceo brad banducci retiring. the nikkei will probably not take out the 1989 record today, but looks like we will have another down day on the nikkei. s&p futures looking kind of flat at the moment. haidi: take a look at some of the movers. you mentioned woolworths. it's been a challenging week recreationally for the woolworths ceo who just announced his retirement.

the head of loyalty and memberships will be taking over as ceo as we see that leadership change, after really what has been a viral clip that we have seen all across the various platforms after his interview in domestic media. this is the picture when it comes to its other stores. santos' full-year net income missing estimate, the company saying they are exploring options. the oil and gas giant, despite last month, ending deal talks with large rival woodside, looking for ways to attract interest in its portfolio on the back of the full-year earnings slump as a result of lower prices. also watching national australia bank, the ceo sees ongoing resilience in the economy and says most of their clients are coping with challenging of well. a credit impairment of 100 93 million aussie dollars.

home lending and business lending weighing as well. so a bit of downside when it comes to trading in the u.s. trillion lander. exxon mobil has pledged not to curtail exploration or production plans in guayama, as the president continues to ramp up his territorial debt as the venezuelan president continues to ramp up his territorial claims over the region. >> we have been very clear, we are staying focused on executing our operations within our defined contract area. that is what we intend to continue to do. as we talked about, this development has many years ahead of it and we are not going anywhere. so fundamentally delivering and developing and continuing to spread the benefits to guyana within our area of operations. we take the necessary

proportions for an operational perspective to the extent we can, but fundamentally our focus is on doing what we say we are going to do, within our approved contract area and continuing to do that. >> the reason we are talking about this is because when as well as president was talking about barring you from exploring certain waters. near guyana, right off the coast that it claims as its own. are you planning on exploring those areas, or is that not in your purview a new can continue with the production he have planned? >> those wells that were discussed are in our contract area and we do plan on proceeding with them here in the coming years. >> are you concerned about guyana's ability to defend itself. it's not just the rhetoric from nicolas maduro, it's the fact that we have seen in satellite imagery, him building up his own military on the border.

>> that is honestly a matter for the governments. clearly, given the nature of operations, we are informed of the nature of the discussions. we are very supportive of nguyen's position that this should be resolved through the i stg process. paul: paul: that was the exxon mobil upstream president. we have the market opens in seoul and tokyo coming up next, looks like we will probably not take out the record on the nikkei, though. haidi:. haidi: no, pretty muted across the region. in the words of one analyst, we have almost 800 companies reporting this week and only one really matters for the market at the moment, nvidia. to give us some indication of where this ai-driven rally might go next. this is bloomberg. ♪

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>> this is a daybreak asia we are counting down to asia's major market open and we are always watching for the possibility of the nikkei not going to happen. >> we will get there before tillis us what tour of australia, anyway, to be fair, this depends on what we get out of it, so much at stake. so much of which is the broader direction of where the ai driven chip driven rally continues for markets like korea. paul: japan is investing in this now, 67 billion, a fascinating store on the bloomberg terminal and japan moves to recapture an industry in terms of advanced chips. haidi: we are going to the open as we said, we will not get there when it com