>> welcome to daybreak australia. i'm paul allen. counting down to asia's major market opens. >> the top stories, asian

markets set to kick off for a week on corporate earnings and economic data as traders seek insight into the direction of central bank policy. >> tesla slashing prices amid slumping sales and swelling inventory as elon musk puts off his india trip to deal with a company in chaos. >> u.s. builder forced sale or ban of tiktok set to become law after winning bipartisan support in the house of representatives. paul: this is the start of another week. how we are tracking in terms of futures, don't want to start off on a bummer after last week but positive territory for a sx futures, better by about 0.3%, nikkei futures looking flat as well. the aussie dollar, hovering around the 0.6 seven cents level, and if you were looking for bright spots, go doing well.

-- gold doing well. a pretty ugly picture elsewhere. annabelle: it is the havens that you are pointing out and no surprise, investors flocking to them with with we see in the middle east. that was the story friday, and then in wait and see mode. this is a look at u.s. futures, modestly high but putting it into context of what we just had come a sharp selloff across the board. u.s. stocks, s&p 500 dropped below 5000. nasdaq's lighting more than 2%. this week the levels will be tested because we have more than half of the magnificent seven falling or rather reporting earnings over the coming days. investors will be seeking to understand whether the height of ai has more room to run. brent crude under pressure.

the oil market looking skittish over what is happening in iran and israel, whether there is a risk of further escalation. and whether that means inflation pressures could become even more resurgent. paul: a busy week. let's take a look at what is in store. big tech, tesla, microsoft, meta, alphabet will kick off earnings. investigators -- investors will look for ai to rebound and slumping u.s. stocks, not a great week for the s&p. meta is expected to show strong revenue growth and almost double net earnings from a year ago. tesla fell for the first time since 2020 after its largest delivery drop on record. a busy earnings week in asia, led by sk hynix. the south korean company will

probably beat consensus on operating profit thanks to a dominating market share in high-bandwidth memory chips. bank of japan has a policy decision in focus and it is expected to keep rates on hold after delivering the historic hike last month. bank of indonesia might deliver a hike wednesday to put a floor under the rupiah. we will be watching chinese commercial banks probably keep their loan prime rates unchanged following the pboc's hold this month. in the u.s., economists think gdp growth may have slowed in the first quarter. the feds inflation gauge sit -- stayed elevated. ahead of the release of u.s. data, fed officials including austan goolsbee saying monetary officials need more time before cutting rates because he believes progress has stalled on inflation. for tom barker the u.s. economy is not showing signs of running

too hot. >> we are in a situation where demand is robust but i see no signs that it is overheating. overheating would lead to pressure on wages and prices. you can't find that in the wage numbers or the three-month price numbers. paul: let's bring in our first guest, deputy chief economist at amv. thanks for being here. a big week for a lot of data. we will get pce numbers out of the u.s., the feds were -- preferred gauge. this may remain elevated. we are seeing delays to fed cuts this year. can you see a scenario where we don't get any easing in 2024? 3 -- >> i think it is an increasing risk but the base case is where we see easing pushed out later into the year. the key indicator we need to watch for signs of the weaker

inflation print, that is an wages growth. we have clearly seen a straw it -- slowing in u.s. wages growth, 4% on average earnings and it needs to decrease to 3.5% to get inflation down lower. there are positive signs that we will see that happening because the employment indicators on things like the quit rate or job openings or forward-looking indicators of u.s. growth and forward-looking employment indicators have weakened to an extent that i think is consistent with softer wages growth, which i think we will see lower services inflation and allow the fed to become more comfortable. if we did see the scenario where rate cuts were completely priced out of 2024, i think you would see more weakness to share markets from here. paul: does this look like a global economy that needs

easing? we will get a picture when we get pmi numbers this week, the u.s., japan, europe, australia. inflation is high but global growth economies are looking robust. what do you expect to learn this week? diana: in the package you ran through with central banks, i thought, we are seeing divergence across what different countries are experiencing. in some countries like the u.s., you can call it a case of u.s. exceptionalism where you probably don't need rate cuts right now but you will see the likelihood of those later this year as growth weakens and employment growth slows. in countries like australia, canada, europe, there is a case for easing especially canada and the euro zone. those central banks are close to cutting interest rates. australia i think we'll get there before the fed. there are divergences going on around the world but i think we will see this move to most

central banks easing by the end of the year. annabelle: of course, the notable outlier for that is what we see from the boj, and we have the meeting coming up this week. no change expected but what will you watch for in terms of signaling for future rate hikes? diana: japan is really an outlier here. what we need to see is what happens to the inflation data. the latest data from japan was softer than expected but at the same time in this week's bank of japan meeting, they are likely to revise up the wage forecasts because of the higher shinto wage negotiations that have occurred. we are needing to see higher inflation data from japan that is sustained and running towards the 3% level on an annual basis to see hikes from here. like central banks not in a hurry to cut interest rates, the

bank of japan isn't in a hurry to hike. annabelle: on that point, needing to see more inflation, where it has come from in japan historically, or in recent years is more on the supply side, not the demand side. how much are you tracking, and this is across other economies but how much are you tracking oil prices and the risk that puts into the picture given escalating tensions in the middle east? diana: we have said in the past supply-side indicators are so important in determining inflation and growth outcome. we put together what you can call a pipeline inflation tracking, tracking things like commodity prices, pmi price surveys and shipping costs and storage costs around the world. those have stalled at the moment. that is why inflation has stopped falling around the world.

for australia, we have seen those price indicators look better because in some forward-looking pmi surveys, price growth has come down. at this stage i think inflation is likely to stall is current -- at current levels until a further sloping in the second half of the year as we see wages growth while especially in the u.s. paul: you still have recession as the main threat. what are the odds of that happening? diana: it depends on what country we are talking about. in australia or the euro zone i would put the risk of recession at 30-35% by the end of this year. for the u.s. i think the risk of recession is lower. u.s. growth has been exceptionally strong in the past year. the forward-looking indicators apart from employment are holding up pretty well. the yield curve is inverted but it has been for a long time so it has not been the best indicator. there is a risk of recession in any cycle you are in, so that

remains the case for 2024. for 2025 if the fed keeps rates high, the risk of recession is now down to 15%-20% for the u.s. in the next 12-19 months. paul: thanks for joining us, diana. still to come, elon musk post -- postpones a trip to india. he was expected to give an investment announcement. we will speak with international crisis group on where they think the new red lines are following last week's strikes by israel on iran. this is bloomberg.

annabelle: the u.s. house of representatives passed 95 billion dollars in fresh aid for ukraine. israel, and taiwan. ending a six-month political impasse. the senate is expected to pass the package this week. let's bring in our washington editor. the question out of this is, is the funding going to be enough for ukraine to turn its fortunes

around on the battlefield? tony: that is what ukraine's president zelenskyy hopes. he said in an interview with the u.s. network that this should be , it should give ukraine at least the capability to retake the initiative on the battlefield. what that means of course, in practice is another question because it has been six months or it has taken six months to get to this point of the u.s. approving new aid for ukraine and all indications and commentary in the meantime has been that russia has basically advanced and there have been very material signs of that, like the taking of some towns. so yes, will it shift the balance? that will have to be seen.

one of the things that is in the bill is the so-called attack, a medium-range missile the ukrainians hope can start making a difference on the battlefield again, by going after russian targets. paul: this package passed with bipartisan support in the house. mike are -- mike johnson said history will judge them well with some republican colleagues might judge it more harshly. what is his future? tony: still on the line, but i think the balance of commentary in washington has been that johnson showed strength and has batted away this challenge or rebellion, if you like, from, if

you want to call them that, isolationist branch of his conference in the house, his republicans in the house. the threat of ousting him from some of these very vocal opponents of aid to ukraine and his general leadership of the republicans in the house, where they have the majority, people like marjorie taylor greene, who is very vocal and present in the media, that hasn't gone away. time will tell. one of the lines from that camp of his caucus was, well, we hope he will see the writing on the wall and resign. that's not what we are hearing so much from the more traditional wing of the republican party. but yes, there could be more turmoil ahead.

annabelle: tony come the funding includes -- tony, the funding includes aid for israel, which netanyahu suggests could be used to step up operations in gaza. it is perhaps not something the white house really wants to see at this point. tony: yes, although the white house has been for strategic and political reasons, had asked for aid to israel and, including military aid, to be included in this bill. that is what happened. there is also probably political calculation there, that a lot of republicans, or more republicans actually, were in favor of aiding israel but aiding ukraine , the u.s. politics of it, that is something that will have to play out. the white house has been increasingly, in recent weeks,

very outspoken about calling for restraint. and that is just something that netanyahu doesn't necessarily seem to take into account. at least not in his public statements. so that is something that we will have to see. we will have to see what weapons are actually delivered to israel. paul: tony, thank you. tensions remained following the recent strikes between iran and israel. some analysts have called the attacks a game changer amid continued fears of open well -- open war. the director of the iran object and senior advisor to the president at the international crisis group joins us now. i want to unpack some of what is happening over the past 24-40 eight hours. iran's foreign minister called the retaliation by israeli drones, he described the drones

as toys and said we are concluded unless israel launches a larger strike. does this look like a way for both sides to do it -- to de-escalate? ali: it seems like this chapter is closed and the tit-for-tat between iran and israel, there are two realities we have to take into consideration. first is that the next chapter could be just around the corner. the proximate cause for these tensions, the war in gaza, is ongoing. sooner or later israel will enter into rafah and that will probably exacerbate the humanitarian situation in gaza. it could inflame tensions between iran and iranian backed groups in the region on the one hand, and the u.s. and israel on the other. the second thing we have to

watch very carefully are tensions between israel and hezbollah over israel's northern border. hundreds of thousands of israelis have moved away from the area and will not go back as long as there is no solution to those tensions. the second reality that is important to pay attention to, i'm afraid because iran and israel have started changing the rules of the game and it is unclear what the new rules are, the next time we get into a situation like this, the risk of miscalculation would be higher. paul: seems to be the more likely path is that israel and iran continue as they have done for decades, waging a low scale smoldering war using proxies. what are the risks this could escalate into a wider conflict? and how far along the path is iran to having your weapons? -- nuclear weapons? ali: the rivalry between iran and israel was from the iranian side indirect attacks on israel

and from the israeli side, was mostly covert operations against iran. this has become overt and direct and that is where the risk lies. both sides have crossed the line, targeting each other much more openly. therefore, the next time they enter into another direct confrontation i think the risks are higher, especially because although both have demonstrated that they don't really want to end up in an all-out war or a regional conflagration, they have demonstrated that they have a much higher tolerance for risk than we thought was the case in the past. this is happening in a situation that iran is closer than ever to the verge of nuclear weapons. when president trump walked out of the 2015 nuclear deal, it would take iran 12 months to enrich enough uranium for an their weapon. the timeline is now six days.

one of the side effects of the tensions is that the more iran comes to the conclusion that it is a regional deterrent and its conventional capabilities are not deterring attacks on its own soil, the more likely it is to move in the direction of developing the ultimate deterrent which are nuclear weapons. annabelle: when you stack that progress in terms of military capabilities against strategic changes because you were discussing the shift away from energy from iran, there is a policy of deterrence. is there any backing away from such an extreme approach perhaps? ali: it is hard to imagine it. in a way, we have the mirror image of two governments in israel and iran that are very unpopular right-wing and also to a certain extent, messianic on both sides. that increases the risks of

further escalation, and the difficulty of finding off ramps. we had an administration in the united states that actually works very hard between an ally and an adversary to try to contain these tensions. this administration might not be in power, eight months from now. then we would wind up in a situation that again, the risks would be much higher. unless there is some change in the region or in the leadership of either of these countries that would allow for cooler heads to prevail. annabelle: how do you think the renewed tensions, visible tensions between israel and iran, how does that complicate the progress or process towards a cease-fire? with gaza, in gaza? ali: it complicates it in two ways. it distracts from what is happening in gaza over the

course of about 10 days since israel first struck iran in damascus, then iran responded. in this period, all the attention shifted away from what was happening in gaza and puts international pressure on the parties. it is hard to get to the finish line. second, the fact that hamas from the day it launched the horrible attack on october 7, was hoping for a regional conflagration because their hope was there would be a united muslim front in the region that would come together and put tremendous pressure on israel and change the balance of power. that didn't happen. but hamas has not given up hope on it. that is why i think during the tit-for-tat between israel and iran, it was hoping it could buy more time and change, tilt the balance in its favor. annabelle: it was the director

of the iran project and senior advisor to the president at the international crisis group. we will have more ahead on daybreak australia. this is bloomberg. ♪

annabelle: quick check of u.s. futures, modestly higher but against the back drop of a big selloff friday led by the alexa -- likes of nvidia, tesla dropping ahead of key earnings for i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with xfinity. when people come, they say they've tried

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paul: a bill forcing tiktok's chinese owner to divest ownership stake is on a fast track to becoming law in the u.s. the legislation was included in a crucial aid package for ukraine and israel passed by the house over the weekend. our global business editor joins us.

when is the bill going to become law and what are the implications for tiktok? >> big implications from this. it is expected to become law in days. president biden says he will pass it and that means tiktok needs to be divested in a year. bytedance says it will it -- explore all legal actions but this is big for the u.s. potentially. look at how many americans use tiktok, tens of millions. this company has been under the gun for a long time about how they use american data, how they store american data and coming into elections in november, bytedance's chinese and owns tiktok and u.s.-china tensions are at a low. this could throw a wrench into them as we go into the contest. annabelle: bytedance would have nearly a year to divest its holdings or its company in the u.s., so is there concern from the u.s. side that that could

have implications especially in the year of the election? karen: it gets complicated, and they have a year to divest it but they are going to take legal action. that is what we have been saying. so it depends what that looks like and how much they are able to do on that front and how this plays out over the next couple weeks. at the same time, the big issue will be the election in november. this is a chinese company. u.s.-china tensions have been, they have tried to get them on a better track but this could throw problems into them into november. for many americans, especially younger voters, they get a lot of information from tiktok, not just cooking or exercise videos. it will potentially impact how they see politics. tiktok has taken a major voice in america and if you will him -- eliminate the voice we could see implications coming into the fall. paul: we want to talk about eric

anderson, the u.s.-based general counsel for tiktok and his mission, is it karen: complete and unachieved? karen:he has been leading the talks with the u.s. government for a long time. bloomberg reports he will be removed that position in the wake of this decision. but tiktok says that is not the case. we will have to see what happens with him. annabelle: that was our global business editor. let's shift to what will be a key focal point for this week, earnings. the likes of microsoft, meta, alphabet among the tech giants scheduled to report this week. the so-called magnificent sevens results will arrive at a crucial time as investors look for an ai powered rebound in stocks. garfield reynolds, i want to know how high the bar is. do these companies need to jump over something that is sizable

to convince investors that the rally can be sustained, that we had around tech at the beginning of the year? garfield: it is interesting when you look at the last time, i know nvidia isn't among those applauding this week but last time nvidia reported, the stock dropped into the earnings. people said it can't possibly meet what were very elevated expectations. then it lose them out of the water. on one hand you have that recent history of concern going into earnings, but there is the second part, the earnings really went to the upside. i think that is helping drive some of the concerns going into this earnings season, that it is very much about the magnificent seven. they are expected to show growth in earnings the rest of the s&p 500 is expected to show a decline.

there is a big burden on them and they probably do face a pretty high bar in particular to be able to spur sustained gains, because everyone has digested the nvidia earnings and other earnings that have gone along, so there is a high bar, not just about what they report now but the outlook. recent history, tsmc, the taiwan two producer reported recently, and on the face of it, those earnings looked fairly good but there were concerns about the outlook. some of the impact got a little bit washed away by the geopolitical -- geopolitically induced fluctuations we saw at the end of last week. but it was still there. it came down to, some people talked about the biggest problem with tsmc was that the ceo on the call seemed far less upbeat,

just his body language wasn't great. whereas last time around, there were challenges within the earnings but he looked and sounded optimistic, as though the only way forward was up. i think the magnificent seven need to truly live up to their name and be magnificent, those of them that are reporting this week. otherwise, we could have further underperformance from them, or also there is the concern for the rest of the equities universe. that highlights a concern that a lot of the rally in the last little while has been narrow. paul: garfield, the equities universe probably shouldn't be looking to the fed for support at the moment. sick pay cuts for 2024, that is

looking fanciful now. what are we looking for easing at the moment? garfield: the market is pricing one fed cut for certain in november, which is been very interesting if that takes place because that means it will be just after the election, i believe. so just one in november, fully priced and then even money for a second one in december. so that is a big change from those six were priced in earlier. the equities market is only really significantly concerned about the rates outlook as the fed made it clear that although in theory, three rate cuts are penciled in, that was the march plot, it is obvious to everyone the best case scenario coming out of the june update is likely to be two cuts, might only even

be one. and that is of more concern to the equities market, especially because there is a double problem. one is that earnings look like they are losing momentum, which it -- makes it harder to justify valuations at current levels, even amid economic optimism. so they need more rate cuts then the fed is likely to deliver. unless there is a big step up in earnings. a big step up in earnings might signal no rate cuts coming. the downside is, if you get the market turning towards pricing in those rate cuts again from here, that probably means the economy is not doing well, so it has turned from win-win for equities when looking at the rates, so about three months ago, to lose-lose. paul: all right.

garfield reynolds, who leads the markets live asia coverage, thank you for joining us. elon musk postponed his trip to india, blaming the delay on pressing issues at tesla. tesla spent the weekend cutting prices for its cars and driver assistance software ahead of earnings expected to confirm a first revenue decline in four years. musk has staked the company's future on a next-generation self driving taxi. let's bring in peter. never a dull moment at tesla. his biographer described this as elon musk in daemon mode. >> even by elon musk standards it has been a wild week. started off last week and with the announcement they were going to cut 10% of their global workforce, about 14,000 jobs. there are reports the cuts could be even deeper than during the

week. we saw him go what he called balls to the wall on the autonomous taxi, which seems to have taken over as the company's priority from $25,000 mass-market cars, which he talked up the last earnings call. only three months ago. investors have been keen to see that move towards a mass-market car to try to fill the hole in tesla's sales that we are seeing. that was the beginning of the week. the rest of the week we saw the company try to revive shareholder votes on the 56 billion dollar pay package for elon musk struck down by a court in delaware in january. they had to recall all the cyber trucks sold in the u.s. for a faulty accelerator pedal that could lead to accidents. on the weekend we saw price cuts in the u.s., china, europe, the three key markets which suggest sales may still be getting worse than what we saw in the previous quarter.

he called up a trip to india planned for this week, citing heavy obligations at tesla. their earnings call this coming up tuesday u.s. time so a lot of focus now is on that to see if we can get clarity on what tesla's strategy is. annabelle: that is what i was going to ask about. the chaos and the challenges are reflected in the stock price, which is down more than 40% since the start of this year. what would reassure investors from this set of earnings? if anything? peter: it looks like we are going to see a pretty bad set of numbers from tesla tuesday. we have seen the drop in sales that is expected to report a 40% plunge in operating profit and its first revenue decline in four years. what investors i think one more than anything is clarity on the strategy. it was only three months ago that on the earnings call, musk

was talking up progress on these $25,000 mass-market cars. last week, the whole thing seems to have swung towards these autonomous self driving taxis or robotaxis. we know tesla's claims of full self-driving don't really exist. full self-driving isn't full self-driving, it still needs constant driver supervision. it will take time before we can get to the full self-driving robotaxi and we have seen other companies like gm have huge problems getting these cars on the road and keeping them on the road safely. so i think that will be the main thing investors want is some clarity on what tesla's strategy will be going forward. paul: that was peter, our global business editor. stories on trade, the u.s. trade representative says she expects a conclusion soon on a review of

tariffs on more than $300 billion in chinese goods. last week president biden threatened levees on shyly -- chinese steel and aluminum as he tries to win over workers. he has kept the trump era tariffs in place for leverage. >> there is no such thing as free trade in steel. the market in steel globally is significantly distorted by what we are calling the nonmarket policies and practices coming out of china. annabelle: chile imposed antidumping tariffs on chinese steel products using the countries mining industry to support 20,000 jobs. chinese steel products face levees of up to 34% over the next six months, and uptick pressuring steel producers across latin america. a check on commodities, we could

get clues on the direction of where to go from here for the likes of metals, oil, given the amount of earnings do over the coming days. big oil, exxon, chevron, set to post first-quarter results this week. on the mining front, the likes of caterpillar could shed light on the strength of those industries. continuing to track gold, sitting around a record high and a lot of focus on the demand, particularly from within china. more ahead on daybreak australia. this is bloomberg. ♪

paul: i'm for japan ahead. the approval rating for the japanese prime minister's cabinet is rising by four percentage points to 26%. a separate poll shows the approval rating unchanged at 25%. we will watch nissan shares when the market opens after the japanese carmaker reported full-year profit that missed estimates. profit came at a $3.4 billion, lower than forecasts. shares of an electric company may decline after the end of a lockup period determined in its ipo. annabelle: japanese markets

coming online at the top of the next hour. bk futures -- nikkei futures, quite range bound and that is what we are seeing across assets. that could set the direction for trading today. investors will be in wait and see mode. in japan, we are awaiting key earnings coming out. you have middle east tensions ongoing, also the u.s., the feds prepared method of inflation, and the bank of japan information, what that will tell us. could we see clues on the timing of possible future rate hikes? paul: japanese basketball says it is coming after the world's biggest leagues. the league president told us about the b leagues ambitious goals. >> we want to become the second

largest league after the nba in all aspects. i have a vision where in five or 10 years, when the basketball industry around the world gets together and says which league is the next big league after the nba, the majority of people will say it is the b league. i hope we can reach that goal by 2030. in a business sense i think we will be the second biggest as soon as this year, surpassing the euro league in europe and the cba in china. it will take more time to see if we are strong or weak and if we are competitive or not, so in terms of competitiveness i would like to set our goal, 2030. >> when we talk about the b league we have to mention former players and talent coming to japan. there are rules like in soccer where you can have three foreign players per team. is that a major hurdle for you to elevate the game of basketball in japan?

>> we have three players now. in the near future we will allow naturalized player and an asian player in the roster. i think this league has already become the most globally diverse in asia. in many asian countries, only one or at most two foreign players are accepted. we are considering increasing the number in the future partly to create a high-level playing environment with foreign players but also, to help create strong japanese players who can break through and compete and strengthening the competitive environment. >> the average b league player makes about $150,000 per year. nba players make multiples of that. how will you lure those players, attract them to come to japan and play? >> that is the average, but important players coming to japan now are already highly paid.

in relative terms, the market has already reached high salaries like the nba. many top players wait for the nba to call them when they get a chance, but now those players are starting to come to japan. as the league continues to grow, the salary limit will be raised and i think the environment will become more attractive to those players. >> what do you see is the next big milestone for the b league? >> the league has become one of the most notable in the japanese sports industry. i think it is attracting a lot of attention, including elsewhere in asia. however, to make of this truly sustainable, i think we need to take steps for the future. i'm increasingly aware that we need to cooperate and collaborate with other asian countries, the u.s., australia, europe and other leagues, not only to bring in high-level players from overseas, but to develop global strategies like

selling broadcasting rights and receiving investment from overseas. the other strategy is to nurture the younger generation. we need to think about how we can raise the level of elementary school students and other small children and how we can put more effort into nurturing them when they are young, such as sending them to the u.s. we are making decisions to invest resources that will lead to the future, not just what is in front of us. we already know this will be effective in the next 10-20 years. >> what is the one thing japan needs to stay ahead in the world? >> i believe japan is approaching a turning point in terms of how far the government can go in making decisions regarding diversity. japan is probably the first country in the world to experience a significant decline in population and an aging society. i believe the world's attention will be focused on how to resolve this kind of development.

we need to make full use of the power of sports, the power of young people, and partnerships with people overseas to get through the current situation, and i would like to take part in this process as well. annabelle: that was the b league president. you can catch japan ahead every week, every monday 8:40 a.m. in tokyo, seven: 40 p.m. sunday in new york. bloomberg subscribers can watch on the terminal using the tliv or tv function. this is bloomberg. ♪

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paul: it only happens once every four years, and we are not talking olympics. we are more nerdy than that. we are talking about the bitcoin having. it hasn't happened since 2020i believe. it happens every four years. the daily reward will drop from 900 bitcoins to 450 and not a lot of movement on the price. looks like it is priced in. annabelle: priced in and also, carried off without a hitch. we are trying to understand if it is priced in, what do we need to look at?

one of the nerdy aspects is what it means for the bitcoin minors, given they are getting such a big reduction to their revenue. some of -- in the market are saying you could see a sector consolidation, so publicly traded firms could be the ones that get more market share, given they have greater access to funding and equity financing is what jp morgan is saying. they focused on bitcoin miners particular. the rally we have seen has been pretty significant so far but you haven't really seen the likes of marathon riot. they are lagging that big jump we have seen. and that will be one of the key talking points. coming up in the next hour, we will be discussing the market open, because we have a big week of earnings ahead, a big focus

when it comes to the magnificent seven, given the big earnings numbers that are out. and video, not on the docket over this week but still watching that, given the sharp drop over the weekend. these are some of the chip stocks we could be watching out the back of that. sk hynix do to report figures. we have the open her -- for seoul, sydney next. this is bloomberg. ♪

>> this is daybreak asia and we are counting down to asia's major market open and one key thing we will track is where this ends up being a wait and

see session given the amount of items on the docket and earnings releases ahead. paul: that's right. a number of unappealing superlatives set by a number last week. it will be an interesting session to see how investors respond and if they respond at all. annabelle: some action in the fredda session -- friday session was down to the tensions in the middle east but it was the close of wall street and big drop in the likes of nvidia, tesla, the worst drop for nvidia in about four years and today we are tracking the outlook for the japanese yen, still trading closely to the 155 mark and we have the boj decision this week and it