>> welcome to daybreak

australia, we county down to asia major market open. anne and colin, the top stories this hour's. u.s. treasury rallies with the fed sounding less hawkish, jerome powell downplayed the possibility concerns about inflation. the yen searches and the japanese authorities intervened for the second time this week and qualcomm gives an update on profit forecast for the current quarter, suggesting demand for smartphones is increasing. this is the picture when it comes to numbers, consumer prices unchanged, a slight pickup of .1%, this is volatile energy costs, arising 2.3% year on year, consumer prices when it

comes to the your on your reading, two point 9%, softer than expectations of a gain of 3%. marginal in terms of the implication for the bank of korea in terms of its rate trajectory. we have seen a lot of that demand coming through for exports and ship exports in particular. that inflation number for south korea is slowing more than expected. a pretty reassuring indication that the bank of korea is making progress on the campaign to cool price growth. it could put the be ok towards the consideration of a policy pivot at some point later in the year. at this point it is not loathing a major shift would be forthcoming or imminent at this point. eminent is the market open across the region, a number of markets coming online including chinese markets after the labor market holiday and we are seeing a muted picture when it comes to the set up for sydney and

futures are down by .1% and kiwi stocks softer at this point and nikkei futures are unchanged and a firm focused on what we are seeing with the yen, that big move again, speculation that there was some potentially intervention moves or we have seen again, fairly muted reactions from japanese authorities saying that they have nothing to say on whether or not they intervened on the yen. annabelle: giving pretty quiet, we will find out when they did intervene or not and we know we have the hk coming out just now saying it has kept its base rate unchanged at 5.75% and also the h and k is following the fed but the market reaction today is very much reflected the postevent decision or presser and barn moves because we had a big mover. yields dropping in tandem and

you saw the two year yield below the 5% mark and you actually at one point in this session we had marcus headed for the biggest cross asset surge on a fed day this year -- markets headed for the biggest cross asset surge on a fed day this year. chipmakers are dragging, amd, selling off after their numbers coming out, not enough to impress investors, you do see all, again, helping in after hours with earnings and we do have equities pointing to some slight gains here. will as well flat at this point in time around $79. the broad readthrough, jerome powell not as hawkish as feared and actually, that has helped to remove investor concerns and this could be a tighter policy on the way, take a listen. ask i think it is clear that policy is restrictive. we believe over time it will be sufficiently restrictive. that will be a question that the

data will have to answer. it is unlikely that the next policy or rate move will be a hike. haidi: let us get some more insights from the former dallas fed president, robert, great to have you with us. did you think first and foremost that the communications and messaging, did he strike the right balance? >> yes, i think he did. he wanted to make clear that the bar is very high and it is unlikely that there going to be rate hikes and the next move is more likely to be a cut, however, he made it clear that they are disappointed with the progress that has been made and they are patient. i think you did a good job leaving their options open but reducing the fear that the next move might be a hike. i thought that his communication was right on the money. haidi: persuasive evidence he

would want to see before any such move towards tightening, it is interesting because i do wonder what that evidence would look like given in this conflict you continue to see in this mixed bag of an economy where you have historically restrictive rate settings versus relatively still easy physical and stimulative effects of other settings. do you think the fed can do more to address the economy? >> they have done what they can and i think that you highlighted the issue. the tension. monetary policy is historically restrictive. we have had dramatic. increases jerome powell reiterated today he thinks the fed policy is restrictive.

you have got still some substantial fiscal policy where we are running over a percent deficits so far this year as a percentage of gdp in the united states and that is historically high for an economy that is in full employment and that spending is coming from unspent american rescue act money, inflation projects, infrastructure projects, and it is particularly affecting service circulation and stickiness of wages in the service sector. i think that is one of the things that makes the united states unique versus the rest of the world. the rest of the world did not have a level of fiscal stimulus that the united states had and still has and also the united states is more of a service sector economy versus a goods economy and i think those are both challenges for the fed. annabelle: do you see that challenge really persisting or perhaps even worsening given that we are in an election year? >> it might.

we really have not seen, we have seen good progress over the past year and inflation but it is a little bit stalled out on the service sector side and the reason is the employment market is still tight. it is still tight and this government spending is fueling infrastructure projects, new manufacturing projects, that increase the demand for labor at the same time the fed is trying to cool demand for labor. i do not see any prospect this year at least that the tension is going to abate and that is why the fed will have to be patient and what jerome powell is communicating rightly is people should expect to have several months that they will wait before they can take action and he is not putting in a timetable on when they may act

and the tension is why. haidi: we are seeing some signs perhaps coming through consumer slowdowns, some signals in mcdonald's or starbucks earnings. do you see the inflation challenge and perhaps it is hitting a pocket of workers on the lower end of the income spectrum? >> it is not that monetary policy is not working, it is working. it is meaningfully affecting any industry that is sensitive to industries -- interest rates. the inflation issue, particularly effects workers that make $50,000 a year or less. in the united states, that is at least 60 million workers, a substantial segment of the society. that is why as you point out, we see sales at starbucks or

weaker, we see weakness indicative of a consumer that is spending but is needing to make tough trade-off choices and more likely to say go to mcdonald's rather than to a starbucks because they get more value for their money and they are making very tough trade-off choices about how they are spending. there is evidence of weakness and this is very much a mixed bag economy and the government spending is not sensitive to rates. it also continues to march on and stimulate demand for labor. the great recession of 2000 and eight and 2009 was a crisis of the unemployed, the situation we are facing now is a challenge not that we have enough jobs, but it is that people are employed with a are struggling to make ends meet.

that is the case among low and moderate income workers. haidi: we have talked about the effectiveness of the dot plot and you are positive in the way that is being used to convey expectations, you think given we have seen outsized and some would say incorrect reactions from the markets that it is still a useful tool? >> the dot plot is useful as far as it goes but people have to remember it is a snapshot, it has basically a one-day useful life. the fed makes pronouncements and marks but a week or two later they can change their mind based on how the economy develops. i think that probably the issue that the fed might want to take back is after the december meeting, there was a dot plot that called for three rate cuts, the median, but the rhetoric and

the way it was positioned and the press conference, it was encouraging than they would have liked in hindsight and they gave the market the sense that it would be at least three and maybe could be five or six and financial conditions ease more than they would have liked. you see now that they are going to be very careful not to give any false hope to the market and not to anything that unduly eases financial conditions as we go through the inflation map. annabelle: we talked about the domestic inflation risks being an election year and i wonder about the external risks because a component of that was disinflation from china, do you see that being a big aspect of where we see this going in the light of the overcapacity issues? >> there are two big aspect to

inflation. there is goods answer is. goods are actually dis-inflating and i think the fed has made very good progress and sees good progress on goods disinflation and to your point, china overcapacity is a big part of that where china is exporting disinflation because they have so much overcapacity and goods. the issue in the united states is in the service sector. that is really ground zero of this challenge. the good sector given overcapacity is now back under pretty good control. haidi: that was the former dallas fed president, thank you for your insights and 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 go to dayb and their animals -- on their terminals.

customize your settings so you get the news of the assets that you care about. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change?

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appropriate to reduce the target range for the federal funds rate until we have gained greater

confidence that inflation is moving sustainably towards 2%. so far this year the data has not given us the greater confidence and in particular as i noted earlier, readings on inflation have come in above expectations. it is likely that gaining greater confidence will take longer than previously expected. haidi: that was the fed chair jerome powell signaling fresh concerns about inflation, one of the assets we have the most reactive to the rate differential between the fed has been the japanese yen those moves reflecting the japanese government polls but that jump, you see for the japanese yen come over 3% surge in the final minutes of new york trading. only speculation for the intervention from japanese officials but let us bring out executive editor for asian markets paul dobson and paul, we do not have any clarity at least if it was intervention or not? it has the hallmarks, perhaps,

do you think? >> morning, yes, the japanese officials have been claiming to -- declining to comment and the way that the market moved and the timing and the big jump in volume that we saw at the time, there is suspicion that it is the second round of intervention and to strengthen the yen. it makes a lot of sense, wait until the fed is done and powell is out of the way and the market is slightly less liquid and then go hard and see if you can jolt the market a little bit and if you can deter those speculators from having large shorts and get more bang for your box, extreme moves again, the market probably expects we will

continue to see this if the current traders push the yen in the coming days. annabelle: we saw the rates relieve in the post fed rally for the treasuries and i do wonder how sustainable this is. we are looking forward to what the next load of data and the job numbers will hold? >> has a treasuries did manage to see some positives from powell, he did downplay the risk of hike and also the fed announced he will slow down the runoff of bond holdings, he will slow down the basic ones in the tightening in which you can use for the bond market and you are right, with pricing in the higher for a longer scenario, economies look strong and the fed admitted as much and they said inflation has some impacts but not as much as we would

like. the market is only pricing one fed cut for this year and there is still the risk that bond yields could move higher again and they could be interesting to see how that plays out and people will concern about increasing supply we are not getting that on the funding announcements and that is one more positive, a few on the supply and demand side and a few positives there and probably, the more important factor is still the economic data and if we continue to see inflation go to the upside, that is a big risk for the bonds market. annabelle: what about equities? we really saw chip stocks sliding down, what sort of dynamic is important, is an earnings were the direction of fed policy? -- is it earnings or is it the direction of? fed policy? >> a bit of a rally, unraveled by the end of the day.

the impact on equities at least seems to be pretty fleeting and that is because people are really delving into the earnings which have been quite mixed and some big positives and negatives and the market has been punishing the underperformers and qualcomm was a good one, after hours, a couple of the other digital names got hammered pretty badly as well, there is still the kind of sifting through everything to figure it out and it feels a bit more beneficial for stock pickers when you think about it that way and i think overall, as long as the economy is strong and the fed puts it is still cutting, not hiking, the market thinks that is good enough. equities, earnings, they may turn back to the data and fed policy and think everything is still looking pretty good and global growth is the king, a bit more productive and it is

difficult to turn too bearish on the stock market at this point. haidi: executive editor for asian markets, much more to come on daybreak australia, we watched for a bit of a sigh of relief more broadly for asian fx given the list hawkish than expected sentiment out of jerome powell and the fed after the meeting concluded, but we do see still quite a bit of strength when it comes to the picture for the dollar-yen. the dollar-yen advancing more than 3% in new york, we see some speculation that japanese officials have intervened again. we watch the japanese currency very closely and we will see 150 or one 61st after this, this is bloomberg -- 160 percent for this, this is bloomberg. ♪

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australia, looking at the big moves on wall street, we have the rally following the fed decision and the presser, really giving some relief to investors and it did not last too long and this was why, we saw the chip stock slide, amd, supermicro coming out with numbers that did not impress enough, the expectations were skyhigh because both of those companies still said they had high expectations for the quarters ahead. qualcomm, it is a bit of a different story because we are seeing shares that are jumping in late trade after it gave an upbeat forecast for sales and profit this quarter and the outlook suggesting the market for smartphone is coming back, we bring in our analyst and what stood out to you from the qualcomm numbers in particular? >> the story was why everyone else fears significant weaker

outlooks and we have seen the data that the smartphone demand has sort of taken a pause. here you have one company which came in a slightly above consensus which is a win for them, two reasons, one, we have seen apple lose a significant share in china and that has been picked up by other android oem's . qualcomm has a large exposure to smartphones in china and that helps qualcomm's while everyone else suffers and most high end android oem's have launched their devices late early this year, that has higher esp, that helps them with a richer mix while most of the groups are suffering through the

market. haidi: what are we seeing when it comes to china because i have defended the sense of confidence that they are not seeing across weakness when it comes to the android segment? >> there is in china, he had to look at different mid tier, the high end tier, from there, commentary, the flagship phones are not seeing the similar weakness that the mass-market is seeing. that is where they play and it helps them. like i said, a weakness in china was predominantly for apple and that is again a better deal for them because every android headset that sells at the cost of apple, all come gets an uplift. annabelle: you mentioned that qualcomm was standing out from the rest of the pack, md was one that had a big slide -- amd was one that had a big slide, concern around the ai chip

forecast? >> it is more than the concern, the story is contact -- intact, they had some really lofty and aggressive expectations. they were not able to beat. the president that nvidia has set a, every quarter we expect really high beats and this should not happen. if you look at the rest of the non-ai business, it is going to into a slump, offsetting all of the ai goodness. at a company level, the numbers, they are brought down. haidi: you're probably not easily persuaded to switch mobile providers for your business. but what if we told you it's possible that comcast business mobile can save you up to 75% a year on your wireless bill versus the big three carriers? you can get two unlimited lines for just $30 each a month. all on the most reliable 5g mobile network—nationwide.

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>> in recent months inflation has shown a lack of progress towards our 2% objective and we remain highly intensive.

it will take longer than previously expected. i think it is unlikely that the next policy rate move will be a hike. i do think it is clear that policy is restrictive. we believe over time it will be sufficiently strict if. i don't know how long it will take. i just know that when we get that confidence than rate cuts will be in scope. we will see if anyone mentions the pending election. that is just not part of our thinking. if you go down that road, where do you stop? annabelle: that was jerome powell speaking at the press conference following the fed decision keeping rates on hold. but importantly, signaling that still the next move is likely to be a cut. perhaps not this year but still a cut. a hike not on the horizon. that was reflected in the moves in the bond space.

we saw a big rally. the two-year yield dropping. we saw it dipping below 5% overnight. just seeing that slight retreat. the aussie three year and the kiwi to year as well. let's bring in our next guest. pooja malik is partner at nipun capital. walk us through your reaction to the decision. not quite as hawkish as expected. but at least seems to be providing some short-term relief to investors. pooja: yes. i think the fed did exactly what was inspected in terms of leaving interest rates unchanged. the sign here was they backed away from wanted to have tightening a little bit and that is a positive to the market. the other big signal from the fed is they don't see stagflation. they don't think there is any possibility of a rate hike in the near future. because you could argue with gdp

growth looking so strong and inflation remaining stubbornly high, the fed might be thinking of a rate hike, which they clearly squashed. all in all it was a positive for the market. annabelle: what was interesting was that the relief that came through from the market was sort of short-lived because we had chip stocks for instance slumping and then u.s. equities broadly looking weaker with the likes of amd and supermicro. what do you think is a key driver at this point, earnings or what jay powell does? pooja: earnings are definitely the most important driver unless the fed makes a very extreme move in either direction. right now the fed is staying balanced on inflation data and employment. i think if they were to shock the market than yes, the market be dependent on fed moves. but as long as they stay within these broadly defined guardrails and keep following the data, earnings are going to matter.

that is what you saw after the close also as the semi earnings came in and that was the conversation you are having earlier. if you look at the magnificent 7 in the u.s. has been up 60% in the last 12 months, that has largely been driven by earnings growth of more than 40%. earnings are definitely driving markets at this point. haidi: when do we start to see a deeper impact with higher for longer? we are seeing the difference in the broader economy between goods and services and aspects that are benefiting and those that are not. do you expect to see that playing through more in the corporate? pooja: there is definitely bifurcation. if you look at consumer-based stocks, whether it was starbucks or mcdonald's missing earnings, pointing to a consumer slowdown. there is that bifurcation between corporate and especially those driven by exports still doing well, versus consumer. that is the other thing the fed

alluded to. they talked about inflation impacting consumers and those who can least afford it. that is something the fed is very centered on. looking for employment numbers, looking for continued inflation signs that the common person on the street is getting impacted. haidi: earnings for chipmakers and big tech, the returns from the buoyancy of the ai trade continue to pay off. how sustained do you expect it to be, particularly in a more difficult funding environment, and what is the next part of this rally? pooja: earnings growth will still be there but not to the same extent as we saw last year. last year the magnificent 7 grew earnings 40%. this year expectation is 20%. what we are seeing across emerging markets in the taiwan

and korea supply chain is many of the mid-cap companies that are supplying originally to pc makers and phone makers are now shifting to support the growth in silver demand. so we are seeing businesses pivot to take advantage of this ai technology trend. that is where we are seeing the next leg up in terms of those sets of stocks doing well that are shifting their end-user base from commodity-type devices to more server and ai-type devices. annabelle: what about expectations around the chinese market? we are seeing signs of stabilization. is this a point to be getting in? pooja: it has been a long time coming in china. but yes, we are finally seeing signs of some growth. gdp growth for q1 is still likely to come in over 5%. we are seeing both consumer recovery as well as

manufacturing recovery. both things moving in tandem we have not seen in a long time. the property sector remains troubled and that will be a long and slow recovery process. but besides that, the government is supporting the economy, the government is supporting the markets. and so we are finally seeing signs of a recovery in china. in april the chinese equity markets were among the best performing in the world, outperforming broad e.m. as well as u.s. haidi: do you see the pickup and growth in china or the uncertainty having a bigger correlation, or this down to we see a calming of the u.s. dollar and that will more broadly benefit emerging markets? pooja: i think china itself is largely decoupled from the u.s. and the fed interest rate decision. and when you think about brought emerging markets, there are segments in e.m. like latin

america that are not very sensitive to the fed rates, or currencies in india and korea that are sensitive to the u.s. federate. but china is slowly emerging back as a significant support for e.m. as we have talked about in the past, the middle east and domestic growth in the middle east and others is positive for e.m. we continue to see broad divergence within the e.m. space, between rate sensitive assets and more domestically oriented assets. annabelle: rate differentials of course one of the key assets being impacted by that is the japanese yen, with a big gap between the boj and what the fed does, which of course has played out in what we see for trading around the japanese currency. how long do you see that weakness persisting, or how effective do you think intervention could be if indeed we have seen it a couple times over the course of this week? pooja: the issue in japan is

that inflation is not really in near-term issue. some amount of inflation would not be bad for their economy. but again, it comes down to the political interest versus the financial interest, which is that for the government, for the ministry of finance, inflation is a problem. because it is disproportionately impacting small businesses and consumers, even though a weaker yen is a positive for big companies, for exporters. so it's that disconnect leading to inflation, where the bank of japan is almost ok with the weakness in the yen, versus the government, which is the ministry of finance, would like some stability in the yen, and that is why we are seeing some interventions. can the interventions have an impact? i think the impact is temporary, because market forces are driving the yen weaker. and as long as interest rates in the u.s. stay high, it is hard for the yen to become stronger.

annabelle: really great to have you with us. haidi: pooja malik, partner at nippon capital. we are about tournament away from the start of cash trading in sydney and also the open in korea and japan as well. sydney futures looking pretty muted. looking like we will extend the losses from the previous session, a broad-based selloff we saw wednesday. not getting much of a relief at the moment. looking at a bit of a decline of about .1% as we get to the start of trading as we saw u.s. equities falling, reversing that afternoon rally. chipmakers, energy strauch's -- energy stocks. nikkei futures also looking pretty muted despite the big move that we see in the yen, which generated a lot of speculation that perhaps another bout of intervention was what was behind that. this, as we continue to watch

the fed holding rates for a sixth straight meeting, less hawkish tone than expected from jay powell. this is bloomberg. ♪

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arrested almost 300 people, breaking up escalating protests over the israel/huawei war. the arrests were made at columbia university and city college of new york. police officials say outside agitators had joined the columbia protest but are still determining how many nonstudents were arrested. bloomberg has learned that the u.s. and saudi arabia are closing in on a historic packed offering the kingdom security guarantees and a path to diplomatic ties with israel. sources say officials are optimistic a deal can be reached within weeks but obstacles remain. israel is expected to be offered a choice to join a deal dependent on ending the gaza war and agreeing towards a path for palestinian statehood. haidi: taking a look at what we are tracking when it comes to commodities and we continue to watch oil as energy continues to

slump some concerns on the demand side. we have been focusing so much on the geopolitical aspect but we have seen jumping of stockpiles. the most since early february for we have seen that the client of more than 5% for crude prices, soaring to the highest since october. still watching some geopolitical developments in the prospects of a historic cease-fire when it comes to the oil front. a little bit of upside this morning when it comes to trading in new york crude. iron ore also seeing a lift as we are watching the reaction play through. we saw a drop prior to the fed. that hit not just iron ore but across a broader base to metals. china's top climate chief is set to meet with his u.s. counterpart in person for the first time next month. speaking with stephen engle, he said he also sees common ground

for the u.s. and china to cooperate on climate issues. >> bring a delegation from different ministries, looking out for different issues. looking forward to have a very sincere and practical conversation with our u.s. counterparts. stephen: how do you see -- in the u.s. they have had a changing of the guard as well. how do you see that relationship building? >> between china and the u.s. we had relatively good cooperation the last 30 years for the climate change process. of course over 30 years, during the trump administration, the u.s. stayed away from the climate process. but the rest of the years we had very good collaboration. stephen: is it even possible to have a separate diplomatic

dialogue on climate? because there are a lot of other very contentious issues clouding the u.s. china relationship. would you rather see a more dedicated climate dialogue in separation from, say, the other issues, whether it is the south china sea or geopolitical relations that has really clouded and deteriorated the u.s.-china relationship? >> u.s.-china is very complicated. but for climate change, both china and the u.s. have a responsibility and we have to cooperate. as much as possible to lead the global process. stephen: what happens if donald trump is reelected? >> that is one of the worries in the climate change community. i hope the american people will support the government, to stay

in the climate change process and stay in the paris commitment even if trump wins the next election. stephen: in march you said protectionism and economic opposition are becoming another problem for the global fight to contact climate change. how much is this holding back global fight for climate change? >> when i mentioned that i am focusing on the impact of diction is on. if north america and the european partners continue to follow this practice, not to talk about trade. if the countries continue to decouple from imports of china products for clean energy, it will cost the world may be an additional $6 trillion u.s., a

20% increase of the overall cost. we need to maintain the low cost. otherwise nobody is going to afford the energy tradition process. stephen: officials claim china is given unfair subsidies and that has led to the situation we are in right now which could distort mobile trade in these clean products. how do you respond? >> [indiscernible] all the renewable energy equipment technology, they are developed and manufactured by private companies. it is very unique. i think private companies normally not receive any government subsidies. we highly appreciate the

dedication and contribution. after more than a decade, now we have both solar and wind projects which are now affordable to start a transition. while we are talking about overcapacity we have to talk about the domestic economy. we have been seeing profitability sink at a lot of these solar and ev companies. price wars are driving down their margins. what does that do to the climate fight if the world is bifurcated on trade? >> we talk about capacity in two different ways. for global demand, china domestic demand still a high demand for renewable energy products. we are determined to increase our renewable energy capacity to a high percentage. maybe over 80%. i think for the next decade we

are still in the process of increasing are renewed energy capacity. globally i think that is much slower than what china is doing. they will be high demand for renewable energy. for the so-called overcapacity, chinese manufacturers, it is a temporary issue. it would be good for competition. they can make much better products. annabelle: that was the china special envoy for climate change speaking exclusively with our chief north asia correspondent stephen engle in beijing. you can watch us live and see our past interviews on our interactive tv function tv . you can also dive into any of these securities are bloomberg functions we talk about, plus become part of the conversation by sending us instant messages during our shows. this is for bloomberg

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at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. haidi: as we mentioned, national australia bank announced a further 1.5 billion australia share buyback as they met estimates. paul allen has more analysis. a lot of that focus was on the

capital management plan. paul: and the buyback itself was widely anticipated. analysts have been discussing it in the days prior. we also got an interim dividend of $.84 per share. this is a theme we are expecting to see repeat with other banks next week. the cash profit, 3.5 5 billion. we very narrowly missed a 13% decline on year led by a 30% contraction on personal banking cash profit. the net interest margin also shrank by about five basis points is there has been a lot of competition for mortgages but that is backing off also. the ceo easy resilient outlook for the australian economy and says the bank and customers are in good shape and sees unemployment creeping up and gdp below trend. the mortgage cliff, rising prices never really eventuated.

only slightly higher than this time last year. annabelle: we are going to be getting the rest of the results next week so how does this set the tone for what is to come? paul: we have mccoury bank tomorrow, anz tuesday, as i alluded to, we are expected to see this ongoing theme of cash and returned to shareholders. anz is excited to announce its first buyback in two years. westpac is potentially seen announcing a special dividend as well. banks generally have been doing pretty well in this era of higher rates. historically it is pretty high and we don't see any change from the rba coming soon with inflation remaining sticky in australia. that stock is up 10% year-to-date to date and it has been outperforming the asx more broadly. going forward there are three buys, eight holds, and citi

moved all of australian banks to sell. macquarie say on the macro backdrop for banks is about as favorable as it gets. could be interesting to see how they do at the open in just a few minutes. annabelle: that was paul allen in sydney. we are getting the meeting minutes coming through from the boj. from march. this is where we saw the boj raising its short-term interest rates to around zero to 0.1%. they have been in place since 2016. what we are getting from the meeting minutes is essentially at least one member was saying they should begin normalization. the question is when we are going to see future boj rate hikes. they are also saying they will be responding to the economic additions as well. boj members say financial conditions should state easy but that are still uncertainties regarding the fed direction and

that has been playing into the japanese yen dynamic good you are seeing weakness this morning against the dollar but late in the new york session we had as much as a 3% jump in the japanese currency. the question is whether we saw japanese government officials intervening into the market. a quick check on u.s. futures pre-you are seeing them climbing across the board. an interesting session. we saw a slide into the close the likes of amd and supermicro slumping pretty it was that story of chip stock split we see qualcomm after hours rising. more ahead. this is ♪

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...day to fly.

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything.

annabelle: we are counting down to asia's major market opens. perhaps investors will be breathing a sigh of relief. the fed keeping rates steady, slowing asset runoff as well, a bit of a holding pattern but it is better than a hike at least. haidi: yeah. of course all of this still feeding through the big move we saw in the yen. and did or didn't they intervene? perhaps we won't know, given that officials are still staying mum on that. annabelle: that's right. we will find out at the end of the month in regular reporting. japanese officials, whether they stepped into the market. that japanese yen very much the focus, as much of a jump of 3% over the greenback. this morning just a little weaker against the u.s. dollar, trading around 155.7.