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>> welcome "daybreak: australia." i am haidi stroud-watts instantly. clay: and i am paul allen. the top stories this hour. renewed concerns that the fed leakage tina smith higher-for-longer. >> but i shares back to the trend of the posted its strongest sales growth in the year previous paul: paul: binance founder and fees he gets four months for a few of the world licensed with crypto. > and china's communist parties involved jesus name is and a housing crisis and simplest possible event, that is something there watching as a go to the start of trading. it's a holiday session, we will get to that in the moment. this is the setup, a dire one when it comes to sydney stocks, down 1.2%. tracking analysis we saw in the u.s. overnight. body cams -- bond yields

climbing on concerns of sticky inflation and what we could expect from that hawkish pivot from the fed started to discipline when it comes to of his sentiments the teachers at job content drops of 1% across the session. the community is gone. the labor market numbers showing the jobless rate has risen to a three-year high of 4.3% from the increasing pressure on the rv and said. chicago nikkei futures, looking like a drop of 1% when we get to the start of cash trading. the number of closed markets in place today. no trading in mainland china, hong kong, south korea and taiwan. also seeing markets closed in singapore, indonesia, india and malaysia. those are on the screen, pulse. paul: as you mentioned, there is a risk-off session is expected today, definitely what we saw in the u.s.. u.s. futures also a bit weaker. he mentioned u.s. labor costs

rising, it is really reinforces this higher-for-longer narrative and the markets seem to be front running what is likely to be a hawkish message from the fed. amazon stock, first quarter profit beat estimates. the cloud unit posted its strongest still growth in the year. oil prices also slipping below $82 a barrel for wti crude, a key support level. we are watching for a potential gaza cease-fire. let's get more at perspective now with our guest, market analyst at ig, joining us from melbourne. as we look ahead to the next fed meeting, what is the chance that we are on hold now for the rest of 2025 as inflation contains to look sticky? >> good morning, paul and heidi . i think the expectation tomorrow is that a hawkish course as the market had already been quite worried about.

but i think what the message, their key metrics and key point in the coming meeting is how jay powell could surprise the market, but not shock the market . as with a major task he has is to help the market navigates the revision of the record. in the latest meeting, they projected a rate cut at the end of this year, but now the market has downsized about one, or even nine. so they will not make a decision in this meeting, but they have to prepare for the next meeting and what they will tell the market about what they are thinking about inflation, whether it will keep pushing up or whether it could materially impact their projection for rate cuts. so that this state the market is ready for one rate cut. now it is even getting ready for it}. -- a rates rise.

paul: we also have sluggish gdp figures out of the u.s. is stagflation something you are starting to think about and are you positioning for that? >> based on the market response in the past week, the perfect scenario that mike is approaching it is that the economy still stays above matter. they come to terms with the fact that inflation will stay higher-for-longer. but as long as the economy is still doing alright, i think the market will stills released. but if we get to a certain point, for instance in q2, received a slowing pace of economic is picking up speed, i think that will be a real point, as you mentioned, stagflation, will be the next concern of critical risk for the market. haidi: looking and hong kong and china, what comes next?

because if you look at the outlet for earnings promotions are still looking depressed. hebe: hochul story is different. if you look at the past month in april, it turns out hong kong's sanctions is the best performing index, best-performing global index, jumping up 7%. by hand that is a huge boost from chinese policymakers in the government trying to encourage more capital from mainland china into the hong kong market. we expect that to continue to be a big push to support the hong kong market. but the global market is getting treacherous. it used to be the best performing market in the first quarter. now it is the worst performer in asian markets. so the pressure will accumulate and keep how limited the market can continue to rally. but support will be the one thing that she'd be invested feel confident about.

haidi: going forward, there is talk about how you pick the sector winners given the broader economic weakness. this chart shows the projections with jean for the five heaviest -only 10 sectors across the msci china index. that dispersion when you look at it, where do you see the winners in the room and where do you still see room for potential gains? hebe: i think over all that if we base it on the market's response to china's gdp in q1, there is no expectation from markets for a improvement in china's economy. if the manufacturing sector seemed to be expecting recovery there, i think that will be one of the potential sources of improvement for the chinese market. , on the other hand, technology was given that china is pushing so hard to its new productive

forces, that is what top policymakers are investing heavily into. it's another sector investors probably will be looking, is any other policymaking to help the sector to continue recovering. paul: i just want to talk about the urine. we have seen the bank of japan accountants suggest that what we saw on the 29th of this month was, in fact, intervention. considering what we were talking about, the convergence in rates, do you think the ministry of finance and the bank of japan are fighting a losing battle? the u.n.- -- back at 159.7 right now. hebe: yes, it appears that pastor the 155 levels, now we see the number continuing to push up. maybe 160 will be the point

where they will start making that material intervention. purely based on what they said the last friday bank of japan meeting, i still believe they would be cautious, making a big name because of doesn't seem to be -- what we expected. it's not on the table for the bank of japan. whether or not to intervene to keep it below 160, i think is more like that that applies for the months ahead. paul: do you think the bank will just keep on testing the ministry of finance's appetite for intervention? what is euro- -- your young forecast? hebe: it is likely. when they see that liquidity is getting to a level that people are taking profits away, we may

get interference monday. as long as the u.s. dollar continues pushing, and depending on the fed meeting, i think upward pressure will stay there. and the market will keep testing what is really the red line for the bank of japan. paul: all right. hebe chen, ig market analyst, will be staying with us. we will talk about tech earnings at the moment. on the subject, what else are we watching? haidi: china is one of the top stories were following, top officials in china exploring new tools to fix the country's housing crisis. xi jinping has agreed to make flexible use of measures to explore the economy. that is according to official

new agency. the newest readout also hinted at possible rate cuts which would be the first time since april 2020 that the statement has mentioned interest rates. an analysis of bank of japan accounts suggests the bank of japan it likely intervened to support of the yen. the boj reported on both of them at a drop of 7.5 ¥6 trillion and its current account today, much larger than the ¥2.1 trillion expected, suggesting an intervention of about five .5 true union took place the ministry of finance refrained from confirming that there was intervention after rapid appreciation took the yen to about 150 per dollar on monday. is our little weight on the muskets to respond to the temporary truce in hostage release proposal. the state non-news says the israeli government is expecting an answer from the iranian-backed militant group

wednesday evening. the internationally mediated proposal says israeli forces agreed to withdraw from portions of gaza, austria is tightening scrutiny of minerals. the rules also include speeding up approvals and ignore risk areas to boost economic growth, china's dominance in the clinical minerals supply chain has prompted us to get to boost its industries by working with allies like the u.s., japan and south korea. binance founder changpeng zhao has been ordered to spend four months in prison for failures that allowed cyber criminals and terrorist groups to trade on the world's largest cryptocurrency exchange. his sentences below the three u.s. prosecutors have sought, and closed with a long-running probe for the justice department which have sought to make an example out of cz, in the industry rebounded from a slew

of scandals. paul: still ahead,, amazon's cloud unit. it's strongest for stroke a year. we will have analysis of their earnings. this is bloomberg. ♪

>> see considerable momentum on the ai front where we have accumulated a multibillion-dollar revenue already. you heard me talk about our

approach before. we continue to add capabilities in all three is -- three layers of the gen ai stacks. haidi: amazon ceo andy jassy there. she surging in after-hours trading after we saw the report of a solid earnings beat cloud unit posted its strongest performance in the year. that would have been a relief to see that result out of aws. does that sort of, again, suothe songs of the disappointment when it comes to sales guidance? spencer: there was a lot of hope going forward in the future for amazon's performance through this gen ai boom but that was really their talking points to investors, was, this has now become a multibillion-dollar run

rate -- revenue run rate for us and we see that continue to grow. we are seeing customers take on longer term agreements and bigger deals with us because they train the new models. it did seem to carry the day. over a bit of soft guidance for the current quarter with they explained as consumers still being pretty tight with your purchases, you know, it may be valiant lower cost items and more consumables which tend to have lower prices. paul: what sort of spending are you anticipating from common sense in terms of data centers? and will that come at the expense of markets elsewhere? spencer: great question. they didn't give absolute clarity, but they said that data center investments in the first quarter were about $14 billion and they affected to be a low mark for the year so it is only going to increase from there. they didn't get a firm's figure, but they hinted that when they

will only increase. then they said they are maintaining the headcount for most corporate rules permit overall, implement went death image, they said it is mostly frontline workers -- over employment went down, mostly frontline workers. by their corporate rules have been flat and they expect that to continue. haidi: no. a dividend. what is the cash -- -- no hopes for a dividend. what is the crash trajectory looking like? are there? any options there? spencer: it did come out. there wasn't a sufficient even before the earnings release and that was by by alphabet and platforms. so on the side for us and asked the philosophy, returning money to shareholders. the cfo with look, with have

prioritized investing in growth in the business, and being down debt. those only thing that will come first. right now we see opportunity to invest in data centers and we still have bills to pay from the dead kobe took on during the fundamental build out our operations. i think he threw a bucket of water on those hopes and dreams. [laughter] paul: bloomberg tech reporter, since spencer soper's. let's get back to hebe chen, market analyst at ig. i went to pick up on the points spencer was making particularly around aws, the cloud unit recovery story. that mirrors the experience of its competitors alphabet and microsoft. do you think that reflects a trend more broadly among clients of the big-tech companies that they are spending more on cloud again? hebe: yes, absolutely, it

mirrors the microsoft stories because of the ai push. it helps that cloud service to grow exponentially. the growth in aws is the fastest pace in the past two years. from the investor point of view, i think it also the fact that the appetite for the ai story is growing. but it will not satisfy investors moving forward, they want tangible numbers. taking away from that, more precious than the rest of the mag 7 -- more pressure from the rest of the mag 7. if they can't deliver robust numbers like microsoft, that will be a big pressure for them. paul: we have amazon up pretty strongly so far this year and after hours the stock is

hovering around the highs he saw during the peak of the pandemic. do you buy at the levels? hebe: taking the amazon, we will have to change the view for amazon. it has changed successfully from purely a e-commerce company to now --. it is a very solid position as one of the market leaders in cloud services. 70% growth in this quarter has helped the market for to ease concerns, because the market share space has been so high. we could potentially see growth getting to a moderate level, at low level didgits. but there are big expectations there and expectations for the next quarter are brighter. haidi: more generally, this is another big lift for the mag 7. do you see the prospect of the

fed higher-for-longer and potentially being reflected among these other economies, being much of a detriment to big tech at this point? hebe: looking at the performance for the magnificent 7 this year, we have already seen a big gap in between microsoft, alphabet, nvidia, of course, amazon, getting annexed a boost from ai and cloud services. but apple, tesla and meta stock, if they don't have the actual forces to counter the economic slowdown in the interest rates stating higher-for-longer, the downturn for them is probably hard to reverse for the year ahead. haidi: i want to talk about baidu, of this in the spotlight with these conversations around tesla and elon musk's visit to china. tell us about this hypothesis that we are starting to see these companies become gatekeepers for western tech,

right, it is such a come to get a landscape. does that make it a bit easier? hebe: i don't think it makes it easier. the sweep tesla and by doing partnership, that it is a method, the chinese government, that they are trying to the global markets that they still keep the door open from the faith you want to come into china's market, we will still keep the door open. other than that, they reinforce the message that you have to play by my rules. the partnership with baidu or with any other big tech company in china may be the new strategy if you want to stay in china, if you still want to enjoy the benefits that this market can bring to you. in terms of baidu, they have not positioned themselves as -- they positioned themselves as they have the capabilities to help an international tech layers to meet the requirements of china's

national security concerns. , on the other hand, they also benefit from learning from the best tech companies. so it's a win-win. it's a big win for baidu as well, but for technology companies, is the new way to play in the chinese market now. paul: before we let you go, we have one more member of the mag 7 about to report tomorrow, apple apple who had a lot of focus on falling i have. if we get a disappointing set of numbers, to you the date on that -- you buy the dip on that? hebe: i dime -- i am not very confident. the expectation for apple is that revenues will be lower than 20%, contributed by the decline in terms of iphone sales. they just reported a huge slump in the chinese market.

out of china, growth also declined as well. i think -- apple is predicted to have an ai premium this summer. they could deliver to give the market a bit of a desk surprise that could potentially help them to see the bottom. share price has dropped 14% this year. whether or not they could come up from that bottom depends on any updates on the technology side. haidi: always great to chat with you from the hebe chen, id markets analyst more to come from "daybreak: australia." this is bloomberg. ♪

paul: let's take a look at how we are shaping up for trade, asia-pacific. we have a lot of markets closed, but a lot of significant markets still open, including australia. future suggesting a risk-off. . nikkei futures are off by 0.25%. of the old saying goes,, sell in may and go away. it is the beginning of may. that spot index is flat for grips the of, 157.71. never mind the intervention

paul: binance founder gets a

four month prison sentence for failures that allowed cyber criminals and terrorist groups to freely trade on the world's largest cryptocurrency exchange. ava benny morrison joins us from seattle. four months prison and he gets to remain a billionaire. what does this tell us in terms of deterrence? ava: that was a point he made saying he is never going to commit this crime or anything like it again and that he should have probation because he has paid his dues, he suffered punishment in being in the newspapers and the media. but the justice department argued a strong message that needs to be sent to the crypto industry and to high-level executives all across america that this type of behavior, even though it just seems a good banking law violation, is not acceptable. haidi: are there meaningful implications for both, six

months after he gets out but also for binance more broadly? ava: he stepped down from binance as part of the terms of his plea agreement late last year. he is still owner of the company. prosecutors said he would still profit handsomely from the company. but he has said that he is focused after he does his four months in prison on a career outside of crypto. he wants to focus on philanthropy and different projects in the biotech industry. so we will see how that turns out and whether he is still involved behind the scenes in binance at all. haidi: ava benny-morrison there. bloomberg has learned tesla is eliminating most of its entire supercharger organization that built a vast network of public charging stations in the u.s. let's bring in peter.

what we know about this and the ramifications? peter: looks like tesla eliminated almost its entire supercharger team, including its senior director appear these are on top of the 10% companywide staff cuts that musk ordered last month. musk then went on to x and said they are going to slow the growth in the supercharger network. this has ramifications beyond just tesla. most u.s. major carmakers are adopting tesla's charging connectors in their cars. at the moment they are using adapters but next year ford and gm are going to have tesla's unique charging port built into their car. and we know access to charging, particularly fast charging, is a key hurdle for people making the

transition to ev's. to wipe out this entire division, we have already had reporting from the u.s. that they are confused by what this means for them. it means that these automakers are losing their main points of contact within tesla just ahead of the summer driving season in the u.s. when people go on holidays and stuff like that. seems to be a bit more confusion and turmoil at tesla, leaving their key customers in the dark. paul: what are the implications for the actual supercharger network infrastructure? peter: it is going to slow down. the supercharger network is the main network in the u.s., it is bigger than any of the other competitors. it is also a money spinner for tesla. it is estimated by the end of the decade supercharging will be a $3 billion a year business for tesla. for that stuff to slow down, it leaves some question marks over

what the plan is for the network, how big it will be and what kind of access it is going to be for ev drivers. not just for tesla drivers but across the whole ev spectrum. haidi: peter vercoe there with the latest on changes for tesla. let's get to banking. the hsbc ceo noel quinn is stepping down in an unexpected move as they try to navigate deteriorating ties between china and the u.s. for more let's bring in russell ward. this came as a shock to a lot of people. what do we know about noel quinn's departure? russell: this was a big surprise , coming during an otherwise relatively uneventful earnings season report. noel quinn said he is going to resign but he will stick around while they choose a new candidate. that process is already underway. it is being led by chairman mark

tucker. it is going to be a smooth transition is what noel quinn said. they are looking at internal and external candidates. noel quinn, after almost five years, is pulling the pin on his leadership at hsbc. paul: do we have any idea about who might be able to fill his shoes, and what sort of challenges are they going to face to continue to grow the business? russell: as i mentioned, they are looking at internal and external candidates. in terms of the internal candidates, people who could be in the running is the cfo who has been cfo since the start of last year. other candidates, the wealth that, commercial had. in a sense, they have the time, they can wait around to look for some outside talent as well. that could involve someone like helen wong.

these are just some names that have been touted around. in terms of the challenges they face, quinn himself faced a really turbulent time with covid. obviously that is in the past onw, but the biggest challenge will be continuing the pivot to asia and working in china. they are really committed to that market at a time of massive geopolitical tension between china and the u.s. that hsbc and quinn have been caught up in. quinn has definitely managed that, so the new ceo will have to have the political mouse to do that. the other thing they will have to do is look at diversifying their business away from relying on net interest income. that is getting into more areas like wealth management and insurance. so there are some challenges ahead for hsbc. quinn's legacy is that he steadied the ship and his

successor will have to build on that. haidi: and what a ship, this multiyear turnaround for hsbc has been glacial in a lot of ways. but he is leaving on a high. he has managed to see through these record profits. things may not be as easy going forward? russell: that's right. just taking interest income as one example, he has written the wave of massive rate increases, that environment that has helped other bank's lending income. now they are looking at rate cuts, albeit delayed perhaps. that is just one area where there are going to be challenges with a potential squeeze on the interest income. then of course as mentioned, the geopolitical challenges. quinn came in, china was the market to be into, all banks were trying to get into there. china was deregulating the

banking sector. now these banks realize they have to be in the market, but the market is slowing and china has obviously immense challenges. hsbc has been caught up in the property debacle there, writing down a lot of assets in that sector. there are challenges going forward for a successor, that is for sure. paul: here are some of the other big corporate stories we are following. starbucks shares tumbling in extended trading after it posted its first sales drop since 2020. the company reported a 4% decline in same-store sales with locations in china seeing an 11% dip as half off deals and new lattes failed to entice consumers. they also smashed their forecast to low single digits and -- amd shares also plunging after the chipmaker gave disappointing

forecasts for ai processors. the company projected its mi-300 lineup of ai accelerators will generate about $4 billion in revenue this year. analysts were expecting twice that amount. the ceo said the chipmaker is struggling to meet demand due to supply constraints. huawei says profits rose nearly 600% in a sign it is taking rocket share from apple and other smartphone makers. it made $2.7 billion in the three months to march, marking the fourth consecutive quarter of profit growth. the phenomenal jump in earnings underscores how huawei's resurgence, in spite of u.s. sanctions. china vanke is exiting operations and divesting assets to boost liquidity. in a memo from a shareholder meeting, the company said it is adjusting its business model to focus on property development, real estate management and rentals. it is also pledging to reduce interest-bearing debt i $30.8 billion in the next two years. haidi: setting up ahead of the

start of trading in about 20 minutes time. a number of markets are closed for holidays today. out of the ones that are trading, looking like a downward start and it comes to the action in sydney. indicated downside up about 1.1%, following the lag we saw on wall street. concerns about higher for longer from the fed thanks to stickier inflation playing out when it comes to risk appetite. we saw an addition to the selloff in u.s. benchmarks bond yields rising as well. that surge in the dollar pretty kiwi stocks down by about .5%. joblessness rose to a three-year hybrid interest rates are starting to cool demand. it will be seen as a welcome sign by the central bank returning inflation to the target. taking a look at japan we are seeing a little bit of weakness although mild compared to what

we are seeing across the rest of the region. we saw interesting results from bloomberg analysis of central bank accounts concluding that japan likely did conduct the first intervention since 2022. so we continue to watch the yen particularly as we see that big move jumping the most in two weeks and how that plays out for asian fx. more ahead. this is bloomberg. ♪

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paul: a bloomberg analysis of central bank accounts suggest japan has probably conducted its first currency intervention since 2022. for more let's bring in garfield reynolds who leads our markets live coverage. the evidence piling up that was intervention we saw on the 29th but the key question is, was it worth it? garfield: well, at the very least it pushed the yen back from 160. it got within .03 of matching the low back in 1990. if it goes past that it will be the lowest since about 1996. there are not a lot of ready barriers to hang onto. from that point of view it looks

like something of a success, possibly a tactical success. and while you could argue if the fed somehow meets or exceeds the very hawkish expectations it is facing and also payrolls, the yen could readily go back to those sort of levels. reverse argument would be if they had not intervened and you are starting from 160 or more yen per dollar, then who knows where you could end up. 170 come into play pretty rapidly and that is the sort of thing that would have a lot of impacts on japan's economy and the political situation. and you can see we have had this inversion of the previous situation where it used to be a weak yen was welcomed by the japanese stock market because that helped a lot of the exporters and key players in the japanese corporate's. a weak yen is no longer being

seen as on alloyed good news for corporate japan. haidi: japan is another dimension to this in terms of how long the yen stability might stay as well. some interesting comments we got from the politburo. maybe a little bit more expressed aggression and how they plan to support these still struggling property sector and the global economy. garfield: yeah. as ever, it's always a very measured push me, full you, push me, pull you setup. but they did sound more open to easing of various kinds. which probably makes it understandable that the news from this did not come out until after we had gone on a holiday so there is no immediate pressure on the yuan. but it does seem as though it is going to make it harder and harder for the pboc to

significantly slow the yuan's decline in the face of a rampant u.s. dollar. now, if the u.s. dollar pulls back, that is a different state of affairs. but on the one hand chinese equities in particular, we saw strong gains for property stocks leading into the meeting. those gains were validated to some extent because they definitely increased their interest in and work on, how do we resolve the property situation. so, for property stocks, for stocks in general, sounds like more support is coming for the yuan. that dancing through the snowflakes task for the pboc just got a few more snowflakes to dance through. and the main task would seem to be to make sure that the yuan's march lower is a smooth one

rather than a disorderly one. paul: one of the variables you mentioned was the possibility of a falling u.s. dollar, although it looks pretty unlikely as we are on the fed meeting. markets seemed raised for a -- markets seem brace for a pretty hawkish meeting. garfield: strong expectation that the fed will signal that it is going to further delay rate cuts and that indeed, its initial guidance coming into this year and then it was repeated in march, that it expects to cut three times this year. that that looks extremely unlikely to occur. you would need to have not just a noticeable slowdown in inflation, but an actual deterioration in the way the economy is traveling for them to

look towards three rate cuts in the second half of this year. that is a pretty strong pace. powell back in the beginning of this year, the base case seemed to be we cut in the middle of the year, probably june or july, on the way to these three cuts we have penciled in. that looks very unrealistic now. so, those are the sort of things you are going to want to look to him. there is the potential that the bond market has overplayed his hand and powell will end up sounding far more measured than the bond market is expecting. haidi: garfield reynolds there. harvard university economics professor says the fed is unlikely to act on possible clinical pressure coming from the u.s. government. he also term old -- he also told bloomberg he expects elevated rates for your succumb. >> it is not going to work very well. it is going to be obvious it is

not working. if you take away fed independence, investors are going to get jittery, inflation expectations are going to go up. so happily, for better or for worse, i think markets will throw a cold bucket of water on the president if he tries to do that. i don't think he would go to that extreme but it is clear he wants to be disrupt in chief -- to be disrupt or in chief. >> markets would apply the brakes in that scenario which is still being reported out so we will not go too far into the hypotheticals. if we enter into this environment where you have these episodic spikes of inflation, what was sustainably higher real interest rates mean for this economy when you think about the potential ripple effects? >> i think it really comes in the cost of borrowing for the

government or individuals. remember, inflation is also driving up tax revenues and driving up wages and salaries. the real interest rates, they are there to stay. they are the wedge between the two. this world, there was a period where you were a sucker to not borrow as much as possible, whether it was to buy a larger house, to fund new government programs, etc. we live in a more normal world now. i am not saying i am telling you what interest rates are going to be for the next 20 years, but i am saying on average they are going to be a lot higher than they were after the global financial crisis. >> what does it do to growth? >> we have had long-term interest rates a lot higher for

a long time and had better growth than we have now. it sort of depends on what is going on. to the extent it is driven by huge government borrowing, private borrowing, it is clearly a negative. you are just paying a risk premium to borrow. to the extent it is driven by ai and productivity and wondrous new technologies that obviously high rates go hand-in-hand. maybe there is some of both. paul: that was a harvard university effexor speaking there to bloomberg. you can watch us live and see our past interviews on our interactive tv function where you can also dive into any of the securities or bloomberg functions we talk about and become part of the conversation and send us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

haidi: taking a look at the markets and it is a holiday session across asia but we are a few minutes away from the start of a staggered open in australia, looking like starting off on the back foot, downside of over 1%. some downside coming through from new zealand as well with

the jobless rate rising to that three year high. employment unexpectedly falling as well. we see the impact of high rates starting to curve demand. that will be welcome news for the rbnz. so much of this has been the risk aversion we saw on the final stretch for april across the u.s. markets. we are looking at options that traders are expecting the biggest fed they move in the s&p since 2023, according to analysis from citi. what we are expecting of course from the fed is it will keep rates steady for a sixth straight meeting or more importantly the signal of no plans for cuts in the future after inflation continues. not just inflation but so much of the data continues to hold up well. paul: higher for longer definitely seems to be the well embedded narrative from the fed that will support the greenback. the dollar spot index rising. a couple interesting currencies on the board. the yen is weakening again,

157.71. we have more evidence the bank of japan probably did conduct intervention on monday. we have got a boj report from yesterday that its current account is going to fall by $7.56 trillion per it -- was it worth it? the yen weakening again. we aussie dollar just below $.65 u.s. we had corelogic house prices coming in as expected, .6% increase in april. a lot of markets closed today including mainland china, hong kong, india, malaysia, south korea, and singapore. the market opens in sydney next. ♪ that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events,

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>> we are waiting for a trade numbers of course.