>> welcome to daybreak

australia. markets have just come online. >> top stories this hour. asian stocks set for losses as oils rally triggers a flight to safety. we have one floating the possibility of no rate cuts this year. haidi: samsara -- samsung reporting rate cut declines. paul: we speak exclusively with argentina's president about turning from hardliner to pragmatist in relations with china. >> as for the chinese government, what we have always said is we are liberators. if people want to do business with china, they can carry on. what i said is i would not be aligned with communists. paul: we have breaking news out of the gate from south korea. the current account balance for

the month of february coming in strong compared to what we saw in january. 6.85 8 billion. more than double what we had in january which was a sharp decline on what we saw in december. a pretty healthy recovery in the current account balance for south korea. next week we have a bank of korea meeting the current cash rate, 3.5%. inflation still above the 2% target. that will be good movies -- good news for the bok. there were suggestions the economy was struggling should this balance does tend to counter that narrative. just open for trade in australia and unsurprisingly we are seeing selling going on. it is early going but not unexpected we are seeing this. off by a fifth of 1%. nikkei futures looking flat. new zealand losing ground.

we did have some hawkish remarks out of the fed. haidi: perhaps confusing in terms of consistent messaging. the minneapolis fed talking about the idea of the possibility of no rate cuts at all this year and we heard from loretta mester of cleveland saying perhaps the fed was getting close to the confidence point of being able to ease. let's take a listen. >> i would not say they are off the table but they are not a likely scenario given what we know now. if we continue to see strong growth, if we see strong consumer spending and strong gdp growth, that raises a question in my mind, why would we cut rates? >> i still think if you take a longer arc, inflation is coming down and we are going to get to 2%. >> we are not where we need to be. inflation is still too high particularly for the asset limited communities. and income constrained. if you think of food, shelter,

transportation costs, still too high. it is coming down. it is coming down in a way where it is still creating jobs in america. haidi: let's bring in the head of research and investment advisory at k2 asset management. he joins us from melbourne. great to have you. it seems the balance of risks is so finely tuned at the moment for the u.s. and i could say the same for australia as well it is hard to be able to make big bets on what the next step is going to be and when. >> of course. going to protect future earnings and credit conditions. these are a good set of aggregate numbers for north america. the s&p 500, more predictive versus other equity pit that is a function of the policy and the key medication.

people are looking for more certainty but we have had in the relative sense north america, the u.s. market is benefiting from strong labor market, a stubborn nonlinear fold in inflation and core, core cpi, you take your measure and debate accordingly. these are reasonable numbers that have justified why the overweight to risk assets have been the place to be for the past six months. from the fed reserve, it would be suboptimal if they are signaling amplified rate cuts in the face of drawing jobs growth, momentum. there are weak pockets throughout north america. there is demand destruction through parts of the economy. in the main, it has landed quite well and that is why risk assets have benefited and people are waiting for the next step. thing to reinforce is higher yields are justifiable with the economic activity higher than what people thought a few months ago.

that should not be a headwind for earnings up to a certain degree. that is the push pull effect. these are a good set of numbers should let's see the labor data to mark and look at -- labor data tonight and look at the average earnings going forward and seal that feeds into the core inflation. that is stubborn and quitting uncertainty for people when they're pricing in future conditions to haidi: your preferred markets of japan and the u.s., the fed is not in a hurry. the boj is not in a hurry to pick up momentum. do you continue down the same path or is there some rebalancing? >> continue down the same path. a little bit of a rally in europe and people are taking profit. we like energy. that is the u.k. market. we would not go underweight commodities could the massive basically 245 eps for the s&p 500. if you want to get those numbers

to the 247, 249, you need an acceleration of the earnings. it is a bit unpredictable but there are earnings in north america. we like nikkei, south east asia. we like the american market. on their recovery picks up and becomes more broad-based, you will see beneficiaries being the russell 2000, the sustainable rallies which has not happened. that is yet to work its way through the market. that is probably a 2025 story. paul: we have heard from a number of fed speakers over the past few days. i'm wondering if your view of the outlook for the u.s. dollar has changed at all having listened to all they have had to say. >> nothing much changed from our point of view. early in the year looking for u.s. dollar weakness to be at the back end of the calendar year. looking for the dollar strength to be persistent in the first half. what we would say in the first quarter is push that 10 u.s.

dollar strength that persist into the second half of this year. that creates headwinds for emerging markets. creates headwinds for liability willing over and sever bond issuers. it is frustrating for some investors. the u.s. dollar strength persists more than not going into the second half of this calendar year. paul: do you feel like growth prospects around the world have had a spinner thrown into the works? inflation and central banks by the rising oil price. brent above 90. how long do you think it is before we see it hit 100? >> brent towards 100 is another headwind and more demand destruction at the main opec are going to continue to control the supply narrative. we like the overweight energy and a general which includes lng. we think this is justifiable

towards 100. it will hurt. inc. of it as high nominal bond yields justifiable when aggregate is more robust than people thought a month or two months ago. economies can tolerate that but there is again some demand destruction, some impact to earnings and some impact to credit spreads for the stronger economic momentum in aggregate justifies you can tolerate this for some time. generally 90 days to 180 days. you see the demand instruction kicking through. it is priced into credit spreads and will price into earnings downgrades for some sectors. haidi: how constructive are you on energy stocks and by extension moves we have seen across commodities more broadly? >> not underweight commodities. soft commodities have had an extraordinary run. look at the coffee and cocoa run and the play there. when it comes to energy in general, we are very underweight

china. we like playing exporters to china. energy is one of two that is why we like australia and u.k. market to the energy export exposure pit into china it is a mobile player as opposed to investing into china. we like the thematic of energy. not overweight commodities at this stage of the cycle. we don't think that is right. we will play it out. paul: george voorhis from k2 asset management. we will talk about china in moment. we have plenty more to come on daybreak australia. this is bloomberg. ♪

haidi: argentinian president is striking a more pragmatic tone when it comes to china. six month ago he threatened to cut ties calling the asian nation and assassin. he spoke with john micklethwait. >> as for the chinese government, what we have always said is we are libertarians.

if people want to do business with china, they can carry on business as usual. what i said is i would not be aligned with communists. that is precisely one of the things. who did i say i was going to align with? the united states and israel. do you have any doubt that is my alignment? >> nobody in fact you have a good example at the moment and i will come back to israel and the united states later. now in argentina the focus is on a chinese space station in patagonia your predecessor allowed to get built. the u.s. says the space station has military purposes. will you close it down? >> well the point is this. negotiations are beginning. the chinese say that is not the case. we will move toward a situation.

we will be looking at that so that is not a problem either. >> is a factory in this the fact that you have the $18 billion currency swap line with china which you do need? you need it for the reserves of the central bank. does that influence your thinking on china? >> that situation has to do with an agreement that was entered into and which has to do with the trade exchanges between countries. i will not modify trade exchanges because i think the trade exchanges between private just as we have a part in our central bank, they have of course there central bank counterpart i don't see a problem. the trade relations have not changed. not a problem should >> the problem would be if i was the chinese government and you called me and assassin, i might be less keen to renew the currency line.

>> have trade relations changed? they have not one bit. that is counterfactual. there is no truth. paul: the argentinian president speaking exclusively with bloomberg editor-in-chief john micklethwait. we will have much more from the conversation including his views on israel and the u.s. coming up later on bloomberg television, online and on the terminal. subscribers can get more right now. let's bring back the head of research and investments advisory at k2 asset management. the argentinian president recognizing what a lot of people recognize, that china is the world's second largest economy. it is still a force to be reckoned with. do you look at deploying capital at the moment notwithstanding the well-publicized economic problems? >> they are well-publicized was going on in china and with argentina should being pragmatic

for obvious reasons. with china we have been investing into china actively since the late 90's. up until march quarter of 2021 we have been underweight china because we believe to put finite capital to work in china is unpredictable since early 2021 and will remain so. exporters to china devon what has been going on the last few years. what is going on in china, there are great valuations but they have to track finite capital and business sentiment are at suppressed and depressed levels. developed world households, residential housing as stronger in the developed world and that is why they would not be cutting rates anytime soon cared opposite in china as they are dealing with these depressed housing construction correction the world has never seen. what is china doing?

beijing is being pragmatic. it is pushing into other areas quickly. underweight in the western world to autos is because of what china can do on the export and ev side. there so many different moving parts but underweight capital in china for many different reasons. plenty of exposure to china for exporters as they try to muddle through what they are going to engineer. it looks like the middle class of china has more paint ahead of them. and with some sort of spending and cyclical spending will be implicated with that. generally mainland china is going to be investing into its technology, ai and the decarbonization footprint the rest of the world will be doing at the same time. underweight again for capital. in china pe. many moving parts. china get them back to the original part of your question

is it is the number two economy under the world but we will not be investing anytime soon. paul: in terms of tech and ai, china tried to work as best it can around the u.s. tech curbs but do you see the mission getting tougher potentially after november? should we see a second trump presidency. >> it will be much tougher in that scenario of a second trump presidency. to put it in context, the trump tariffs which started obviously room matched with the biden administration and that looks like the template going forward regardless there is a variation going on in the developing world that seems to be picking and choosing where it will be interfering. clearly technology and ai is a robust hated area to get in control. india has done it in their own way. it is unique. india have engineered control of technology into their own economy.

the u.s. will continue its calculated fight and challenges with china as everyone is fighting for this platform. adding back to argentina with the patagonia and space station, the americans would not be very happy that is progressing. it is a difficult situation. it is playing out accordingly. china has got a lot of influence globally particularly with the expansion of the bricks economy from one january this year which formalizes the trade with other economies like iran can be more legitimate relative to their ecosystem. there are things going on at the moment. in the main china do have household issues when it comes to sentiment and the middle class of china is going to tolerate the pain going forward as beijing engineers where it is going to recalibrate itself in the decade ahead. it is slow and steady for beijing. it is that the economy is uneven

over there. haidi: interesting of course we have seen india taking the baton when it comes to the doling of the emerging complex. do you think the correlation with china is going to continue in terms of china being the anchor for sentiment within em? >> exactly should that is in overgeneralization players -- overgeneralization but your point is spot on. there are nuances that will not play out here. that is why the valuations are even more stretched in india on the basis of that. you can make the same case. there has been capital deployed since the initial tariffs into thailand and vietnam and malaysia and indonesia is the spot to be in this part of southeast asia and singapore being the beneficiary of that resurgence of earnings and credit growth. it is all about what correlations can i find to

protect my investments in what china is doing and that is why southeast asia and india are the beneficiaries. repeating this point, you play the exporters to china to the west and your exposure to china but finite capital china needs to attract will not come from the west like it was coming in the decades previously. that is a new operating platform for us going forward. haidi: always great to chat with you. head of research and investment advisor at k2 asset management. you can watch us live and see past interviews at our interactive tv function. you can dive into any of the securities where the bloomberg functions we talk about. you can join the conversation by sending instant messages during our shows. this is for bloomberg subscribers only. it is at tv . this is bloomberg. ♪

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paul: openai says it is seizing that it is seeing surging demand for the corporate version of chatgpt. the company's coo told us more about the enterprise business and working with microsoft. we have seen jim at his growth in the enterprise. funny for is going to be the year of adoption for ai in the enterprise. we felt like 23 was the year people started to wrap their head around what is possible to the market is pulling us toward real applications delivering the results and abroad focus on ai enablement. how do we think about bringing ai to our operations but also to our workforces and to new product expenses we can deliver to customers? we work with wendy of companies doing all three of those things at the same time. we think that is very possible. it is having dramatic bottom line impact today. this is what we think poll is

going to be and we are buddy to support. >> you are the coo so i'm assuming you are responsible for also some of the purse strings involved in openai's finances. compute must be a considerable cost right now. with that, the energy consideration as well. are you making enough revenue from this enterprise business to keep the lights on when you factor in the compute costs involved? >> yes. we have a diversified business. we serve hundreds of millions of users with our chatgpt product. many of those users are paying users. we now serve over 600,000 individual users in the enterprise with chatgpt enterprise. we are seeing tremendous momentum. we are very early innings on this. we look at it as this is the start of something. our priority is to deliver the

best intelligence whether it is in the enterprise or to individuals. that is the most use that drives the biggest business impact. >> ticking back to the conversation we had the other day with anthropic and what she explained was the relationship of aws and bedrock adding a lot of business. you have a similar and pre-existing situation with microsoft. are you able to explain how much business comes through that conduit of the microsoft relationship and what will be existing as your enterprise customers? >> we are fortunate to have microsoft as a customer -- as a partner. we have increasingly looked at the world as ways we can bring openai technology to life together. we are fortunate they are offering our models through the openai service. we have an independent service -- and depend a business so we serve customers independently of microsoft. haidi: openai coo ride like cap

with ed ludlow should we have much more to come on daybreak australia. it is picture across sydney looking deceptively calm. we are set for heavy rain, weld weather gripping the city of sydney and much of australia's east coast. seeing disruptions for commuters already. lengthy delays after we saw brain-damaged equipment at key train stations. the beer of urology has issued severe warnings for cindy and the table lands. expecting potential risks of flash flooding. particular concern around the blue mou

haidi: we have household spending numbers out of japan for the month of february. seeing not a steep as decline as

expected. expectations were for a full of 2.9%. in january we saw the contraction of more than 6% which was the biggest shrinkage we have seen in household spending for. japan in almost three years. . the system not a positive figure but alleviates some of the concern over economic growth projects. the boj having pulled the trigger on that hugely anticipated rate hike but we did see the huge drop in the previous month for february looking a little more muted but still a half a percent contraction. that makes it the 12th straight decline we have seen in terms of personal spending staying weak in japan. what we have seen is the phenomenon of salary gains continue to lag in inflation. the weakness of the yen has been a factor. . we could see further pressure when it comes to real wages in february. leading indicator pointing to more of a jump on the consumer side of inflation. of course the yen jump in the

most and in nearly a month as rising tensions in the middle east boost assets. get more from garfield reynolds. it has been a wild since we have talked about a haven reaction for the yen. >> it is one of those weird things. these middle east tensions have been with us for six months. the rhetoric has gotten hotter but all the same, we have had sudden reaction. oil went up. so did bonds. bond yields came down. the yen rose. i think that is kind of your clue as to why the yen is remembering its haven past. it is because the thirst for haven started with people going into u.s. treasuries sending treasury yields down. there is some thought it might

have been a little bit of extra oomph for the move because people had gotten so short treasuries recently with all of the strong data and some fed speakers saying we only need to go once or no times this year on rate cuts. with that, boosting treasuries, sending yields down, that helps to bring the yen stronger. because very much the skew for u.s. yields had been to the upside for this week. yields are still up strongly on the week should that had sent the yen very close to 152 per dollar. a lot of people highlighted as being this is where intervention might come. it refused at 150 to three times in the past week. a lot of people are talking about it is almost like a trial

run for what happens if we get a weak jobs number. there have been these attempts for the yen to go past 152. if it goes on not being able to go past that, that can bring a bullish tone back to the yen and have it come down strongly as we know the yen can do. that is all there in the mix. the kathy up for this if we get another strong jobs beach, this is going to make it all the easier for the yen to drop and potentially crash through the 152 because it will have the capacity to build momentum before it gets there. paul: it is a potent example of the way of hopelessness and intervention. we have had this talk of intervention from the ministry of finance and some huge macro event happens. it can be literally anything that moves the yen.

as the ministry of finance not very well equipped to move the yen when confronted with these bigger events? >> it is always more difficult to defend against currency weakness and against currency strength. if you think currency is getting too strong, the japanese authorities or any authorities, you can print money. you can print your own currency and sell it for u.s. dollars to weaken your own currency. you have an almost infinite capacity to do that. if you are trying to stop your currency weakening, that means you have to sell u.s. dollars and you only have a limited amount of that. japan does have a lot but the yen is heavily traded. you would need to spend a lot.

that is part of the dynamics going on here. that being said, the japanese ministry of finance has had some success in restraining where the yen is going. that is why they are doing it. they do see some worth and they have had some success. paul: going to have to ask you to change gears because we have got results from samsung to give you a heads up of what is coming. we got results for the first quarter. operating profit 6.6 trillion won. the expectation was for 5.67. sales coming in at 71 trillion. a slight miss on sales numbers. we were expecting to see a buddy sharp rise in sales due to memory chip demand. estimate at percent come in with 21.3 million. revenue was expected to come in a lot higher.

that has not arrived either. on the face of it, this looks to be a solid set of numbers from samsung. i will ask you for your early reaction to that. >> it is more proof of the impact of ai optimism across the tech complex. it is very real. we keep on seeing high-tech companies like samsung in particular beating expectations and that is part of why equity markets have remained so resilient even amid concerns about valuations, sustainability of earnings expectations at a time when global economies are expected to slow. we are waiting for when are the high central bank rates going to

bite when it comes to company a look? so for it mostly has not. there are sectors that are weak but you get tech yet again shooting the lights out and we ensuring investors there is money to be made in risky assets paul:. garfield leonard's leading markets coverage. talking about the yen and samsung. we are joined by head of korea research at macquarie capital. to recap those early numbers, first quarter operating profit. that was a beat a narrow miss on sales. still getting those numbers from samsung but what is your early reaction to what we are seeing? >> 6.6 trillion won is pretty much in line with my consensus. i think there are two factors behind the earnings surprise. one is obviously the strong memory price in q1.

the second one is better than expected sales of the s 24 which is samsung's flagship smartphone model. the market is paying more attention to the semiconductor outlook market outlook. benefiting from the strong ai compute market and deepening -- in commodity yen. paul: we have seen some of samsung's competitors making big investments in manufacturing capacity. still waiting on what we are going to see in terms of capex numbers. what do you see coming from samsung in this respect. >> the number direction wise is only up -- they have underinvested in the

last couple of years. partly because rising capital intensity did the big quest -- rising capital intensity. the big question is from samsung electronics, how much away from capacity needs to be allocated to the new client such as nvidia or amd and others? companies who are heavily investing in the ai chip market. haidi: the question is how much of a leg will continue to play out in terms of losing the first to market advantage. >> i think the supply is quite slow. in my view, capex timing wise is already too late. that is why the memory shortage

is likely to continue for a while if not worsening. in terms of the capex raise especially on the hbm space, sk hynix, samsung's vocal competitor is the leader at the moment taking advantage of the strong relationship with an nvidia. not just capex but also technology leadership is more important in the hbm space. i think samsung will catch up. i think it is a matter of time to maybe samsung will start selling the next generation hpm three e two nvidia in the next couple of quarters. haidi: where do you stand in terms of the ssd versus hdd debate because that is going to

be a key aspect of whether samsung could benefit from the replacement cycle. >> i think that is very interesting development. last year, people focused on the hbm from ai compute market angle. recently the ssd shortage is deepening simply because there is a strong demand from the ai storage market for high density ssd. 60 terabyte, hdd, maximum density less than 20 terabyte. drive generating too much heat, too much power and too slow for ai application. we are in the early stage of the

strong demand coming from ai applications. the inflation market outlook is quite optimistic. paul: investors love the stock just as they love many chip manufacturers. samsung shares up 35 -- 37% over the price -- over the past year. where does the price go from here? >> i have a price target of 125,000 korean won. suggesting 30, 40% from the price to the samsung share price -- some have a different idea because compared to the other global ai related names, samsung underperformed a lot.

samsung is kind of level play in the global ai space. haidi: great to have you with us. head of career research at macquarie capital. you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers can find it at dayb . it is also available on the mobile in the bloomberg anywhere app. you can customize those settings so you get the news on industries and assets you care about. this is bloomberg. ♪ you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. great job astro-persons. over. boring is the jumping off point for all the un-boring things we do. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady.

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and it orchestration by cdw®. people who get it. haidi: take a look at how we are faring as we head into the end of the trading week in asia. a data point of most significance looming with the payrolls expected out of the u.s. could have huge implications. sidney stocks looking downbeat. 6/10 of 1%. broadly seeing pressure before the jobs data. the account of the hefty gains we see in crude markets. we are seeing the downside about 45 minutes of cash trading we are into here in sydney. new zealand stocks on the back foot. singapore nikkei futures looking significantly lower by 1.7%.

we have sinned -- we have seen the yen rising by the most in a month all of a sudden on account of these middle east geopolitical tensions but looking for the reaction out of the dollar on the non-foreign foreign -- on foreign payrolls. the fact we have seen foreign buyer selling off in japan is adding to what we see as a little bit of a pause in this record japanese rally. bloomberg opinion columnist and former new york fed president bill dudley says the federal funds rate will probably say higher than officials are projecting. he explained exclusively white in this case he thinks the markets have got it right. >> the fed is focused more on what they're going to do in 2024 and don't have a lot of confidence about what is going to happen beyond that. earlier in the year we had a gap between markets thinking the fed was going to ease quite a bit. six rate cuts and then we only had three. now the gap is going the other way. the market thinks the federal funds rate is going to bottom

out around three and three quarters percent. the fed in their economic projections has it going down to 2.6%. there is over a hundred basis point difference. the market is right the fed is not going to go as far as they are predicting. inflation is not going to average 2%. it is going to average a bit higher than 2%. number two, the mutual rate that sits in neutral monetary policy has risen given the large fiscal deficits, ai investment spending and a host of other factors that are putting more pressure on the pool of savings. >> i often reflect i conversation you and i had together in ever of years ago. you are a modest man and will not sing your praises. . you said in june of two anyone rates are going to go higher than people think. when he talked about five and five sounded so foreign. five at that time would be me like me santander yields would go to a percent. people turned around and said you are nuts. we are not going to 5%. . what did you see that early that

led you to believe rates would need to be that high to get inflation down and how does that inform your view of where things will be longer-term? >> the federal reserve set themselves up liberally to be late in terms of tightening -- deliberately to be late in terms of tightening. they said we cannot raise rates until inflation is at 2%. why definition they were going to be very late. if you are late, that means you have to do more so that is the reason rates would have to go quite a bit higher than they expected. this time i disagreement with the fed is they still think neutral federal funds rates very low, 2.6% is the reading. i think that is probably not the case. it is true after the great financial crisis when we had a lot of financial damage to the economy. if you look back at the teller will prior to the great financial crisis, the chair liberal head to percent. 0.6% the fed has at their

estimate seems awfully low. paul: that is bloomberg opinion columnist dan foreman -- and former new york fed president bill dudley speaking exquisitely to jonathan ferro. a lot of geopolitical risk at the moment which solve the gold price climbing above $2300 per ounce yesterday. it has backed off from that level since then. 2289 at the moment. spot gold 14 week relative strength index is at the highest level in four years. it does signal maybe this rally is due for a breather soon. no breather for oil prices. new york crude continuing to rise. better by 4/10 of 1%. 8696 a barrel. brent crude yesterday easily broke through the night it out or a roll level settling at 9065. with that in mind, other geopolitical headlines we are tracking. israel is scrambling navigational signals over the tel aviv metropolitan area as the country prepares for a potential iranian attack.

measures were taken to disrupt gps navigator drones and missiles i ran or proxies might fire on israel. tensions have soared between both sides following a missile strike which killed senior iranian what terry officials earlier this week -- iranian military officials earlier this week i. cease-fire talks between israel and hamas main deadline -- remain deadlocked, israel's foreign minister says he does not trust qatar to act as a mediator with hamas. qatar's mastery of foreign affairs has called the comment lies and baseless accusations. >> qatar is giving safe haven to hamas leaders funding trillions of dollars. buying their ideology in the united states, buying their way in all over the world. a wolf in sheep's clothes and we have to realize them together with iran are a big threat. paul: poised to run a second term running the international

monetary fund. no other candidates put forward. the fund says the 24 member board will hold meetings with georgieva and aim to compete the process by the end of april. russian defense ministers have held a rare television conversation on the were in ukraine. the defense ministry in moscow says there is readiness for dialogue but the french readout did not mention any possible talks. nato members are winning in expectations about a proposed hundred billion dollar fund to support ukraine as floated by secretary-general stoltenberg. you can catch our interview with the nato secretary-general on bloomberg tv this friday as the alliance marks its 75th anniversary. that is happening on bloomberg surveillance at the times on your screen. this is bloomberg. ♪

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the all new godaddy airo. get your business online in minutes with the power of ai. haidi: take a look at some of the stocks we are watching when trade opens in korea and japan. samsung in focus. chip shares more broadly following earnings results from the world's biggest maker of memory chips. we did see the profit rising with the chip division improvement is expected searching in the first quarter of 2024 reflecting the turnaround we have seen in samsung's pivotal semiconductor division. the robust sales, also the

galaxy as 24 smartphones playing a key role. the preliminary operating profit about 6.6 trillion won. . 4.9 billion u.s. dollars. analyst estimates around 5.3 7 trillion won. a handy beat with some relief snapping a run of consecutive quarterly declines we sell kickoff in the third quarter of 2022. paul: analysts bullish. we did hear from daniel kim of macquarie. he sees another 30 to 40% gains over the coming year. samsung up 37% over the past year. we are going to be keeping a close watch on samsung and its associated suppliers when korea opens at the top of the hour. we are trading in australia. we are seeing modest declines at the moment of about 6/10 of 1%. almost every sector in the red. one bright spot it is energy

doing very well. oil prices gaining aggressively. the aussie dollar hovering around $.65. have the yen strengthening. 15127. old-school haven demand going on here but we have heard from the fx chief for suzuki in japan talking as well trying to keep the pressure on the yen should he says the fx levels should be determined by the market. watching the forex moves with a high sense of urgency and aggressive foreign exchange moves undesirable. suzuki keeping the pressure on again. the market opens in seoul and tokyo coming up next. this is bloomberg. ♪ ok y'all we got 10 orders coming in... big orders! starting a business is never easy, but starting it 8 months pregnant...

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are counting down to the major market opens. we are looking at a flat finish to the week. particularly as we head into a u.s. session that has nonfarm payroll numbers. huge implications for the shifting expectations for the fed, as well as the yen. we are getting some more jawboning from lawmakers. paul: shinichi suzuki trying to jawbone the yen lower, keeping the pressure on that we saw to thank to the fed. we saw a rise in oil prices. haidi: a relief as we get back to profit for samsung. so much of this is on the ai demand story. we will be watching that as a top stock to watch. but take a look at the open. a huge amount of negativity when it comes to the nikkei 225 as we see some