paul: welcome to "daybreak australia." i'm paul allen in sydney where marcus had just come online. annabelle: in hong kong, we are counting down to asia's major opens this hour. revenue from alphabet's core search business disciplines, as does microsoft's cloud growth and amg's forecast. analysts awaiting a turnaround in the memory and smartphone markets. and president biden says he has decided on a possible response to a deadly attack on u.s. troops, repeating that he does not want a wider middle east war. paul: let us start with some breaking news out of south korea . first, industrial production numbers for the month of

december. some pretty heavy beats as well. the market expectation was for a pretty tepid .1%. bit of a slowdown from what we saw in november, but still a hefty beat. big beat for south korea industrial production in the month of december. let's take a look. how we are trading in australia. we just opened a few moments ago. currently we are off by a few points. we have a staggered open, but is today the day? we got within two points of setting a record on the tsx, surpassing or we would have surpassed 7600 32, the record set in august 2021, but in the early going, it looks like that may remain out of reach for one more day. we are seeing yields on aussie bonds growing.

a little bit lower at the moment. the aussie dollar just hanging on. the u.s., we will get fourth-quarter cpi numbers for australia later on today. we expect to see a pretty sharp contraction at 4.3%, and this the first rba meeting on the year. next week we expect to see the banks stay on hold. let's see how futures place for the start of japan. the nikkei put on some modest gains yesterday. we are expecting to see a bit of a pullback today to the tune of about .7%. the figure trading out of chicago at least, i rather mixed finish for stocks. chinese futures very narrowly in positive territory, but we have seen those markets in china just continuing to grind lower this morning. annabelle: that's right. a really big focus on that pmi data we get out later today, but the focus of think of what will be leading to asia today, the

focus very much on microsoft and alphabet. i was a lot to like in these numbers that came out, but investors are focusing on the negative. alphabet, it is about search revenue and what came out of that. microsoft as well, that focus on crowd growth. an end, another one contracting because i gave a week revenue forecast for the current period -- amd, another one contracting. similar to what we saw with intel. qqq is the eta that tracks the nasdaq, and that is dropping, but let's change off because we just had futures coming online, and a picture here is a bit of weakness ahead of the open. traders sifting through those earnings, but you've also got the fed decision coming up. treasury issuance, jobs numbers as well as -- jobs numbers as well, so there's a big focus on

the days ahead. paul: let's get more detail on those earnings from our technology reporter. let's start with microsoft, a beat on revenue and profit. what were the key drivers of that performance? jackie: digging into some of the figures, the main number we have to look at, that investors care about, is that azure cloud services unit growth. that came in at about 30% compared to last quarter. that beat expectations, and the company said that about six percentage points of this actually came from ai-related services. this is good news, given investors were looking for some evidence of those ai bets paying off. some other great points in the report including xbox revenue, up 61%. that activation contribution after that deal closed in october, really driving a performance on the whole. the revenue also came in higher

than expectations. the company, however, did not disclose what those copilot subscription figures looked like, which, as you remember, that has been the big news. that product holds the keys to have ai is really playing out for the company. still too soon to say if it is really paying off, but we will get some commentary from executives on the call right now. annabelle: we know microsoft wants to be there -- wants to be an economic powerhouse. that is really their stated goal. how did we see it showing up in results? jackie: again, you look at azure group. it is getting some of that impact flowing through. it is still too soon to say what that copilot contribution will look like, but the company said in a statement accompanying results that, "we have to moved from talking about ai to

applying ai at scale." the company is really taking hold of its "show me the money" moment, but again, it's not really enough for investors so far with shares coming under pressure. it will boil down to that outlook. will this ai contribution grow or stay stagnant in years to come? paul: we saw microsoft shares dipping after hours immediately after this report. why is the market responding this way? >> one of the reasons here is that azure growth has seen some sluggish quarters in previous periods. it looks like it is starting to recover in part do to that ai growth, but investors are looking for a little bit more. when you think about how much excitement has been baked into ai, they are looking for a little bit more. when you see 50% to 60% growth in the heyday during that post-pandemic period when cloud

computing was really on a tear, that has come down quite a bit because azure is such a major profit generator for the company , seeing more substantial growth is a big expectation for the company. there is still a lot yet to be seen in that qualitative commentary that will come from the conference call that's going on at this moment, so there might be better news for investors yet to come. annabelle: where investors are also disappointed comes down to alphabet numbers because that stock has been dropped just dropping in after hours. it does seem it really comes down to the surge business. jackie: a little bit of a different story for google. it is that core search business that is its main financial engine. the company also beat on its overall revenue number. it brought in about 72 billion investors. we were looking for 71 billion. it was also more profitable, bringing in 1.64 per share, but

that revenue, that search unit, just missing. the reason that is so important, even though it is it's a small mist, is because it is the biggest profit generator for the company. some bright spots for google, that cloud unit was -- its operating profit was 860 4 million, double what analysts were expecting. despite that, seeing any kind of weakness in that search unit bodes more concerns for investors, who are looking to see more stability there. paul: what is the outlook for alphabet going forward? jackie: it has a few things relating. it has been a little bit slower to the ai game than a player like microsoft, which has partnered up with openai. the company just released its most powerful large language model, gemini, in december and

said it will start incorporating it in some of its more popular productivity tools as well as its search engine. it has taken a little bit more of a gradual approach because it isn't a search giant. there is a little bit more to lose. it does not want to off put consumers from its core products, but it will have to show that it has a stake here, and it is harder to see in the figures because they do not bring out a specific ai contribution. the company says ai will only bolster their business. one of the ways we can see this really trickled through is that cloud revenue. is it generating more business from ai startups that are coming into the game as well, or is it still playing second fiddle to the cloud giants like microsoft and amazon web services? annabelle: that was our bloomberg technology reporter. thanks for running through the numbers. let's get more on them now with the senior vice president,

portfolio manager, and investment strategist at franklin templeton. it is clear these numbers are casting a shadow over the magnificent seven, which was the key driver of u.s. stocks last year. how much does that concern you about the outlook moving forward? katrina: i think when we look at the magnificent seven, we think they are very well priced. the reaction you are seeing on stock prices is a reflection of that, that they were well priced going into these earnings. the guidance just was not perfect, so the stocks are reacting as such. as we look at the market, we look at the breadth. we look at the s&p, for example, there are 493 other stocks, so that's where we see opportunity, in names outside the magnificent seven. annabelle: just to get more views, jp morgan has an warning of a dot-com stock

concentration in the u.s. would you agree with that? katrina: yes, we have seen concentration. let's remember that we have had a lot of examples. i have been an investor for over 20 years in companies being an innovation leader and then stumbling. i don't know if many people remember wang, but it was a leader in computing and stumbled. companies are continually having to prove themselves and continually having to prove the value proposition that comes with ai. you have microsoft in the lead at the moment, but google is taking a slower approach in terms of the way they are introducing it, and at the moment, the jury is still out as to which approach is better. paul: i want to move on if we can to the big macro event coming up. that is the fed decision on wednesday, u.s. time.

we have had some pretty strong data, but again, bloomberg news also reporting a lot of job losses today from ups, paypal. what sorts of things do you expect the fed to balance, and what's the rhetoric you expect to hear about rate cuts going forward? katrina: as we look at the fed, one of the things we need to remember is it is not just the fed anymore. it is the ecb as well. they are data dependent, and they are really paying attention to the data. you mentioned a couple of these data points which will be important to them. they are looking at the unemployment rate. they are looking at the rate of new hires and it jobless. they are also looking at inflation and looking at all of these factors as it relates to the strength of the economy and the strength of the economy on a forward-looking basis based on these historical data points. from our perspective, i think the fed gets a check mark in terms of controlling inflation. i hear the job losses. i feel for the people, but i think the economy from a jobs

perspective is still very positive. i think while the market is pricing in about a 50/50 chance for a rate cut, that may be optimistic, that they are more likely to see a rate cut towards the end of the year. paul: the consensus seems to be coalescing around may for the start of easing. i wonder how confident you would feel in declaring a victory over inflation and recession. katrina: in terms of victory over inflation, we have really had to adjust our idea of what inflation is. for much of the last decade, we have been looking at 0-1 as an inflation target. now we are talking about something like 2, 2 .5 as a victory. you've got some of the housing data showing the rental income numbers, starting to show a little bit of tempering.

that will help. i do think if you can get the number down to the 2.5%, 2% range, but at that point, i'm not sure it means the fed needs to cut. i think it means the fed at a minimum can hold where they are at, and then they can continue to watch that job number. if they start to see job losses pick up, then they can stimulate the economy with a rate cut, but i do think that may -- as i said, march is 50/50. i do think may is a little early. paul: do you see the strategy changing in the coming months as the fed inevitably starts to resume, the bank of japan inevitably starts to move away from zero rates? katrina: i think the drivers of japan and our bullishness on japan as a stock market are really supported by the rate outlook, and obviously, the

normalization of policy, but really supported by some of the moves that have been taken by the regulator to encourage companies to become much more capital efficient, to become much more capital friendly, and much more shareholder friendly, and that is a really big change in the regime. if we look at some of the japanese equities, while on a headline basis, you may think you are paying expensive multiples, many of these companies have returns on equity that are significantly below their counterparts in the rest of the world, so we think there is an opportunity in terms of arbitrage in between different markets and being a global investor gives us the opportunity to do that and to buy those franchises in japan that have earnings potential that is also supported by the market. paul: katrina dudley, senior vice president, portfolio manager, an investment strategist at franklin templeton . still to come, samsung expected

to post its fourth quarterly net income decline while laying out semiconductor outlook for the year ahead. we lay out earnings that are due later on this hour. first, president biden says he has decided how to retaliate for the deadly attack on u.s. forces in jordan as the white house hints at multiple actions over time. details next. this is bloomberg. ♪ but it's so much more than that. with gusto, paychecks are deposited in just a few clicks. gusto calculates and files your payroll taxes automatically. gusto offers health insurance for nearly any budget. and gusto even connects you with certified hr experts. it's fast, easy, and affordable. gusto is payroll and benefits built for small businesses. get started for free at gusto.com

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>> [indiscernible] i don't think we need a wider war in the middle east. that's not what i'm looking for. paul: president biden they're speaking with reporters after an attack on u.s. troops in jordan earlier this week killed three soldiers. the president also says he has made a decision on how to respond to that attack. let's get more now from our national security reporter. what factors is president biden weighing in deciding how the u.s. will respond? >> does it's a tricky balance between deterrence and escalation. the primary goal, to deter these militant groups and their iranian backers from launching these kind of attacks on u.s. interests in the region while also avoiding a wider conflict in the middle east. to that effect, the biden

administration has said, from our reporting, that they need a stronger response to this kind of attack because of the loss of american life, but it's not clear they are ready to agree with congressional republicans who have said to is for strikes directly on targets within iranian territory. this is taking place during an election year in which gas prices at the pump for american consumers also matters as well as american wariness with military involvement in the middle east. annabelle: where does this sort of response or potential response leave iran? >> we have here -- heard from officials who made it clear they had nothing to do with the attack. we heard from officials saying they don't have any control over these islamic resistance groups in iraq that have said they launched attacks in jordan, though they did not claim responsibility for the loss of

u.s. lives. we are also looking at the who the rebels in yemen who are backed by iran, but iran has said they do not actually order these attacks even though they may support the militarily. paul: this links back to the israeli war in gaza. >> yet, and that is another thing that makes this so complicated. they are still standing with israel, saying israel has the right to defend itself, while criticizing the loss of civilian life in gaza. working on that, getting hostage at home, trying to find a resolution while also responding to these attacks where we have the who the rebels in yemen, for example, saying directly that one reason they are carrying out these attacks, snarling the commercial train through this important trade route, is to push for a cease-fire in gaza. while militant groups see these things as directly related, the u.s. is trying to respond to

them each in kind. annabelle: definitely something we are tracking closely. you can get a roundup of stories you need to know in today's edition of daybreak. terminal subscribers go to dayb . it is also available on the bloomberg app. you can get news just on industries and stocks you care about. this is bloomberg. ♪ j.p. morgan wealth management knows it's easy to get lost in investment research.

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paul: you are watching "daybreak australia." paypal is cutting about 2500 jobs or 9% of its workforce as rising competition puts pressure on its profits. the ceo says the decision will right size the company. those affected will be notified this week.

paypal was an early disruptor of the payments industry but rivals have since crowded into the space. ups saw its biggest share drop since april after announcing plans to cut 12,000 management jobs. it says the move will save more than 100 billion dollars. the ceo says the cuts are possible due to new technologies like ai. ups expects sales for 2024 to come in between $92 million and $94.5 million, trailing estimates. block declined to give specific details on how many jobs are affected. the company announced a cap on reported third-quarter earnings in november. it has been trying to rein in costs to boost profits. bloomberg has learned ups has cut pay of senior bankers as it continues to reduce headcount efforts takeover of credit suisse. sources say several cuts were made last week. ups' workforce jumped when the

deal closed in june -- ubs' workforce jumped when the deal closed in june. annabelle: just looking at how u.s. futures are faring so far in today's trading, they have just come online at the top of the hour. you can see weakness particularly in the nasdaq futures contract. this is the reaction we are getting to big tech earnings after the bell. we also have a nd, and investors have been looking at some of the more negative signals that came out of this. for alphabet, it was the focus on cloud, and then we had -- or rather search engine and microsoft, that focus on cloud as well. not something being received very well by investors, but what is interesting, speaking up and economic given that it is in the

chip space, we heard in the last couple of minutes south korea posting its numbers around chip shipments. over the course of december, we saw those rising more than 113%. this really plays into samsung earnings. we are expecting the full reading for the fourth quarter in the next 10 minutes or so, but chip shipments rising more than 113%, the most since 1997. chip production as well up more than 50%, the most since 2016, so something quite positive for the outlook for chipmakers in general, and samsung, a really key one here, also get the breakdown on how smartphone devices are faring as well. plenty more to com ♪ ♪

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paul: let's look at how some of these big tech names are trading after hours at the moment. most are pretty weak. microsoft has been selling around after hours, currently off by 1%. revenue was a narrow beat at $62 billion. there was a narrow beat on cloud as well, but investors showing a few concerns about outlook. alphabet as well. revenue miss 65 billion. that was a narrow miss, so investors really publishing -- punishing the company for their advertising shortfall. advanced micro devices up 6.25% after hours. a week revenue forecast there as well. some of those big tech names trading software after hours.

let's get more with the vice president and senior equity analyst at cfra research. ask for joining us. i want to start with microsoft if we can. second quarter revenue beat. what were the key takeaways for you? >> we were definitely off from after hours, but the stock is running still hot into after hours. you could say that about most of big tech. that's why we think it is selling off. as far as cloud is concerned, as your growth of 30% i think was modestly above expectation. i think also when you look at what the company guided to for the march quarter, it was positive at one point, and a big reason was the cloud number they provided. they expected growth again to be about 30% for the march quarter.

that is telling us there is increased ai enthusiasm workflows coming under the cloud . you saw that with the fact that they highlighted six percentage points of growth coming from ai services. they did not cite much, but they did cite the trajectory as you see and improving mix towards copilot. paul: there is still an overwhelming fire rating. you consider microsoft to be perhaps the most magnificent of the magnificent seven. why is that? >> i would throw microsoft and nvidia right up there in terms of our biggest names that have the most resilient business model among the group.

when we think about growth opportunities on the cloud, the ai side of things as well as on the gaming side of things, and that was definitely -- definitely helped on the positive side of things in the december quarter. we think there is notable upside not only over the next 12 to 18 months but over the next decade from each of those trends, and as a result, this is one of those areas where any type of weakness investor space, we recommend they could be the pilot. annabelle: i'm interested to get more thoughts on you on how hard it is to quantify the sorts of games we could expect to see from -- the sorts of gains we could expect to see from microsoft on ai. >> i think they highlighted more personal computing growth, about

11% to 14% year on year growth for the march quarter. it is a little frustrating because i know investors want them to quantify the ai potential over the next couple of years, and i would say the one comment i would refer to a couple of quarters ago, there was a reference about this would be the quickest $10 billion revenue in company history. again, they have not provided any type of updated terms of what the monetization potential of ai is, but our view is again, you could continue to see the incremental growth and contribution from ai on that side of things. the number we think will be significantly above where expectations are right now and as you continue to get more on the cloud side of things, and the copilot i think it is specifically this kind of thing. still early days. the company has highlighted the fact it will be more of a

second-half calendar 2024 opportunity and 2025 opportunity. for investors that are looking for an immediate type of inflection in terms of ai contribution on the microsoft side of things, that's not the way this will work. that may be why you are getting some disappointment in terms of share price not only for microsoft, but also for an end -- amd after hours. annabelle: amd were pretty optimistic on ships, but people seem to be clinging to that week forecast. >> it is the week forecast. they saw sequential decline in terms of -- on the revenue side of things. better than what intel guided to , and a big reason for that is because the data center business is holding up greater gpu

revenue potential in calendar year 2024 on their side of things, just now wrapping up the mi 300. we remain excited about that story for the company as well as the recovery for their overall business, but i would say as far as the weakness and integrated seasonality declines, you started off calendar 2023 on a low note on their pc business, probably over shift in 2023. you see that normalization play out as well as their other businesses, so areas like industrials and automotive are week. a big reason for that, but nonetheless, the secular story reads intact and we continue to be bullish on an end -- end -- amd being a big beneficiary. annabelle: it is that big question mark of who is going to

win in the space. you've also got those external competitors, those companies choosing to go in house. how does that weigh into the outlook as well? >> i think you have to account for all of that, but our view is this is going to be a massive market. we heard about nvidia sizing up the addressable market in terms of the data center side of things at $300 billion. they talked about the accelerator market potentially being or hundred billion dollar market by 2027. it is tough to say how they trajectory is going to go here or how big the addressable market really is, but when you think about the accelerator space overall, it is big enough for all three of the names you just alluded to toot take a slice of the pie. the question is how much of the pie each of these companies will

get. we think nvidia will continue to dominate and get 80% to 85% of the share. as far as some of these other companies internally developing chips, we don't think it will be a huge detriment to some of these other companies. it will add somewhat of a headwind, but these companies have to somewhat manage the trajectory of their businesses, so we will get some of those workloads to go into some of those internally developed chips, but at the end of the day, if you are on the cloud, you need to continue to invest steadily in the most advanced chips out there because there is a war in the ai cloud out there, so we are not worried at all as far as the prospects of the companies you just referenced. annabelle: thank you very much for your time this morning. just as he was speaking, we actually have a samsung earnings that came out. this is the final reading for

the fourth quarter here, and at headline level, we saw a beat on estimate -- or rather net income beating estimates, so income coming in at 6.0 2 trillion one -- 6.2 trillion won. samsung, as we know, this is the final result. we did get the pre-lim numbers earlier in the month that give us sort of a signal, but it tells us that that chip weakness is persisting because we are starting to get that divisional breakdown, and we can see that for the chips numbers, that operating loss was at 2.18 trillion won. the loss had been estimated at 1.7 trillion won, so not what they wanted to see. perhaps pricing is playing into it.

but a little bit better than the estimate. really, these numbers playing into what we just got from south korea in terms of their reporting on the chip exports, chip production over the course of december. paul: yeah, we did hear that south korea does plan to lift manufacturing capacity in 2024. perhaps good news for chip prices, not such good news for companies that make them in terms of achieving revenues, but south korea accounts for 2/3 of global production of chips, so that lifting in capacity should bring down prices. it will also be interesting to hear from samsung in terms of its activity around ai, so we are watching for headlines around that. it is launching its latest galaxy device smartphone series, calling them the first ai smartphones. ai has been around for a little while on smart phones, so how much of a gimmick is that? we will be keeping an eye on that as well, but it's also

competing to sell higher bandwidth memory to nvidia as well, so plenty of things we will be looking out for in this set of numbers, but certainly on the headline, those fourth-quarter net numbers, 6.02 trillion won, very handy beat. annabelle: we are certainly tracking those numbers, but the focus the company is saying will be on profits, and that will come via high value added products, so this focus really coming down to that chip operating loss of 2.18 trillion won, more than estimates have been. the question of course is have samsung starts to trade. we are getting it short-term priorities as well, as i said, the first quarter of 2024 focusing on improving profitability. go to tliv to get commentary and analysis from

bloomberg's export editors. samsung's fourth-quarter earnings, the analyst call waiting for that ahead. this is bloomberg. ♪

that first time you take a step back. i made that. with your very own online store. i sold that. and you can manage it all in one place. i built this. and it was easy, with a partner that puts you first. godaddy. thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh annabelle: the imf has raised its forecast for global growth

this year on better-than-expected expansion in the u.s. and fiscal stimulus in china. the chief economist told us that persistent risks from wars and inflation could change the latest outlook. >> we have 3.1% growth for 2024, 8 zero percentage point increase compared to our october forecast, and there are a combination of factors. we see a lot of resilience in the number of economies in the u.s., in china, and in many large emerging-market economies. all this together is what is lifting the growth number for this year. behind this, we see strong demand in some countries, private consumption, but we also see supply-side forces. we see the unwinding supply chain restrictions. we see energy prices coming down, and we see a lot of strength in labor markets.

>> is china a different story given what we have seen the past few weeks, especially given the property sector? >> the property sector is a concern we already had in october. the property sector has not been doing well for some time now. we are seeing that's one of the reasons why we had slightly lower growth for china next year compared to this year. we are projecting 4.6% in 2024. five point 2% last year, but that has been revised upward because the chinese government has been implementing a fiscal package that is trying to support investment and is having impact on growth. >> is that enough, though? many people are saying it is not. >> we are also concerned about more medium-term growth prospects with china. they seem to be coming down from the growth we have had in past decades, and that has to do with declining productivity growth. there are a number of headwinds

for the chinese economy. paul: the imf chief economist speaking with bloomberg. let's take a look at how we are tracking markets at the moment. the a a sex -- the asx steadily moving away from that record. does not look like we will capture that high water today. nikkei futures also setting us up for a softer open. it was kind of a mixed day for u.s. equities also. we saw the s&p flat, and the nasdaq giving up some gains as well. waiting on some important data out of australia today. the fourth quarter cpi numbers are due out in the next hour. bloomberg economics says headline inflation probably eased by quite a wide margin.

tell us a bit more about what we might expect today. >> today is fourth quarter cpi. we are expecting headline inflation to fall. trend mean is the gauge that excludes volatility. it is falling by a wide margin from q3. paul: we have the rba meeting next week. it is it's going to be a two-day get together. we are expecting it to remain on hold. what about that easing/ tightening bias? >> the tightening bias is expected. the new governor has sounded hawkish, and even though

inflation is coming off, at 4.3 percent or thereabouts, it is still way above their target, so 2.3% is there target mandate, and they do want to see it come down. it is moving in the right direction, but we have seen in some cases inflation remaining sticky, and that is the rba's concern as well, so they do want to sound hawkish. annabelle: we are still getting a sense of how we finished off last year, but the early indicators, are they telling us that the australian economy is holding up? >> yes, but the data has been mixed. australian consumers are bearing the brunt of this the most. dated this week pointed to a much bigger slowdown in december then economist had into paid -- then economist had anticipated.

consumer data is weak. the housing market is growing strong. the labor market is pretty solid as well, and while consumer confidence is week, business sentiment remains pretty ok. we are seeing kind of mixed trends, and that's another reason why the rba feels inflation will hit the target very quickly, and that's another reason they are likely to remain hawkish. paul: thanks so much for joining us. that rba meeting is going to be a two-day meeting. we are waiting on some breaking news. that was a little bit premature. we are waiting on breaking news out of japan. it will be retail sales and industrial production for the month of december. i will just remind you that the rba running off a slightly different set up in 2024, counting down to eight meetings per year. those meetings can be two days long.

at the end of it, we will also be getting a press conference. the numbers i promise you, now hitting the bloomberg. industrial production out of japan a partial -- japan's partial reading out of japan. they are a miss. and a contraction of .7%, so some disappointing numbers for industrial production. retail sales just hitting the tape now as well. that's also a miss, expanding 2.1% on the year in december, but the market was looking for much more than that, 5.1%. that equates to a two point 9% contraction. we take a look at the yen, not a great deal of movement. 1.4747 -- 147.47 at the moment. retail sales and industrial production in japan. you can watch us live and see our past interviews on our interactive tv function and dive into any of the securities or

bloomberg functions we talk about and become part of the conversation as well by sending us instant messages during our show. this test for bloomberg subscribers only. you can check it out at tv . this is bloomberg. ♪

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"daybreak australia." recapping some of the breaking lines coming out. fourth quarter final results just dropping now. at a headline level, net profit. that was a handy beat on estimates. the estimate had been for 3.16 trillion won. totaling 53 trillion won. -- capex totaling 53 trillion. we are seeing better than estimated ship revenue from samsung. also adding to that where the numbers we got out from south korea's industrial activity data from december, and that told us semiconductor shipments were rising and also to production increased in turn. at samsung, certainly one of the ones we will be tracking at the top of the next hour. we are also watching for the market reaction to its

smartphone lines as well. it is expecting a rebound over the course of 2024 with chip prices as well starting to climb , but the company saying its ability to offer promotions and other enticements will be a little bit limited. still worth watching because we are seeing a bit of uptick in the overall global market and that doesn't bode well for the south korean company over the course of this year. paul: with that in mind, let's consider some of the stocks that will open. ager's big tech sector obviously in focus. alphabet and microsoft falling following disappointing results. we will be watching supplies of amd and a ishares as well after the second biggest computer maker gave a week forecast,

echoing intel's view of the sector. annabelle: at into all the breaking lines, we had the boj releasing a summary of opinions from the boj meeting. a couple of headlines to tractors they are saying they will mull the end of negative rates if the 2% inflation goal comes into sight. we have an tracking mixed meetings coming through, but tokyo inflation, the latest one missing what economists had been expecting. another boj member did say conditions are increasing for the end of negative rates and that there is a need to start discussing when to exit that policy setting a lot of economists we are speaking to say april is the most likely time we are seeing. more ahead next with the opens in tokyo and seoul. this is bloomberg. ♪

>> this is "daybreak: asia." there is a lot for investors to be digesting this morning, we've had major big tech earnings out at alphabet, also at microsoft in focus, amd, and in asia we got that watch on the samsung numbers and what -- numbers and what that is signaling about chip demand. paul: we will keep an eye on the chip demand story. for samsung a pretty healthy beat. we will listen to what unfolds on the earnings call around tech in the asia-pacific today. annabelle: the rba ahead of his decision, let's take a look at how korea and japan are coming online. the focus on how