To see any sort of intervention in the session today . Did just get more jawboning, across from the japanese finance minister and even he seems to recognize that his comments at ba you, because he has put out a statement saying he is watching fx moves with a high sense of urgency as usual. Something he has said in the past but we will watch for a more concrete action coming through the end, holding above that 150 mark. It is really a function of the yield gap between the fed and the boj. You can see the 10 year yield just coming online fairly steady but at that level you are around six times higher than the counterpart in japan. The ggp 10year at yields. A stocks wise traders are focusing in on those bond market moves. And corporate earnings. You just mentioned meta but shares sliding and you can see that after hours move their down around 4 . The warning amongst others and on the economic outlook, so not a great lead into the session today. It is not just earnings in the u. S. There are also corporate earnings. In korea as well, we had sk coming out so just tracking that stock as it comes online. Another drop as you can see around the 4 mark. The key thing to take away is that the sales decline slowed in the Third Quarter so we still saw a revenue dropping down around 17 but it is an improvement from what we had in the prior three months because that was a 47 drop. It is another sign perhaps the worst of the Semi Conductor sector slump is passed. It still you are seeing those picked up declines coming through in the tech heavy, because doc in particular coming down at this point in the korean won a little weaker. In australia it we are one hour into the session and it sub index that is leading declines. Down quite significantly past what we see for the asx 200. We do as well continue to keep an ion what is happening in the 10 year yield and aussie dollar. Expectations around what we are going to see from the rba next week. Will it be a hike, a hold. We have been hearing from Michelle Bullock the rba governor saying Third QuarterInflation Numbers came in as expected. A quick note on what we are seeing in oil markets, brent crude really almost on the 90 a barrel mark but we have seen geopolitical risk rising again because the israeli Prime Minister netanyahu reiterating plans for a ground assault. Timing on that not clear but another watch for us. The focus today very much on earnings, wall street and korea. Sk hynix has delved into that because annabelle was just telling us about the moderate decline in revenue for the Third Quarter. A sign we are seeing a little recovery in the global Semi Conductor market. Lets break down the numbers, revenue was down but the numbers were not as bad as expected. Walk us through the Key Takeaways here. Good morning, there were several positive areas from sk hynix earnings released this early this morning. One is even though the operating loss was slightly bigger than expected there was still smaller than the previous two quarters and one of the key Business Risks was the business, it made a turnaround from the previous two quarters of losses. The company also gave slightly optimistic outlook for the future saying that the business is expected to see a recovery Going Forward in the pace of recovery may gain speed Going Forward thanks to the popularity in the generative ai business. Sk hynix also said its business might see a slight recovery Going Forward which might show the recent output cut by the global memory chip makers may be giving a push up to the global memory chip prices. However it remains to be seen whether these positive points from the Earnings Report could push up stock prices of sk hynix this morning because we have some negative news coming from the u. S. Including the tech stock losses overnight. Higher bond yields, higher yields and u. S. Treasuries and strong dollar. So whether sk hynix investors pay more focus to the positive areas from the Company Remains to be seen. Paul sk hynix shares outperform Samsung Electronics, why was that . Is that going to be the start of a trend . Youkyung this was a really interesting trend that we have seen and south korea and investors have been telling me that this was really unfamiliar. Samsung electronics is a digger rival but also we saw their stock prices move in line with the memory chip sector. Memory chip prices. However this year we have seen sk hynix gaining a lot more than samsung and that is because sk hynix advanced in the memory chip which is really crucial to the generative ai technology. Sk hynix is a key supplier to the hb chips to nvidia and that has been one of the key reasons their share prices have been outperforming rival Samsung Electronics which investors see as somewhat falling behind in the race for the high bandwidth memory chip that are supplied to key clients such as nvidia. Whether this trend will continue will depend on whether samsung can play catch up in the business. Some analysts have been telling me that samsung might be able to reduce the gap Going Forward but it largely remains whether samsung will be able to secure clients in the ai area. Shery sk hynix up 70 this year versus 20 for samsung so really a big outperformance. Asia stocks reporter there. For todays session it is all down, down, down. We are talking about losses for sk hynix. How are its suppliers doing right now . Annabelle they are really tracking the losses we are seeing for sk hynix. You can see that drop and you were just talking about the reasons why it could be coming under pressure but it is also supply at focus because Tokyo Electron is the biggest and you are seeing that feeding across. Even though there were perhaps signals coming through on these earnings that the worst of the chip sector slump could be passed, it is a down day for tech stocks broadly. When i took take a look at the map function you can see the i. T. Index is leading the losses for the benchmark so far. Lets take a look at some of those names in more detail in the tech space because we have names like softbank, sony coming under pressure in tokyo. Just under 10 minutes into the session. We did have alphabet, that big drop in the prior session down the most since 2020. You just mentioned meta as well and a bit of warning about the economic outlook. We are seeing metadeclining in after hours trade, quite a bit of bearish sentiment feeding through so far with trading underway. The broader index down around three quarters of percent at this stage. Shery lets bring in our next guest who says it is unwise to be exposed to too many risk assets if you can stomach the volatility ahead. With us now as chief global strategist at nico asset management. Great to have you with us, with the geopolitical tensions around the world not to mention higher for longer coming from the fed and these corporate earnings that have come out really volatile how do you position defensively especially if you are bracing for volatility . John as you mentioned longterm investing is not the way to go is the way to go but if you are having sleepless nights its going to be volatile for a while and you might want to reduce some of your risk. You mentioned also the earnings season in the states and in this case it is pretty strong. It is just the guidance that is scaring some stock investors but this happened last quarter and earnings came out and the Third Quarter to be quite good so it is not too much to worry about as far as im concerned. At this point. Shery you like Japanese Equities, japanese yen 150 level against the dollar. Is this too weak for some policymakers in japan . Are we going to see some changes . John i dont think there is anyone in japan that really wants the yen to get much weaker. I was pretty convinced they were going to intervene at 150 and there has not been any sign of that. But we could see that ahead. And it is certainly bounced off 150 twice last few weeks so will have to see. But its true the interestrate differential is becoming harder and harder to fight against. As for Japanese Equities, yes still positive on them. They have not outperformed in u. S. Dollar terms the rest of the world in the last year or two so it is not like they are overbought. There is a lot of foreign Interest Rate now in Japanese Equities but certainly valuations are not high at all and structural improvement in corporate governance, improving Profit Margins, all of these things are still moving ahead which is quite good. Shery how do you feel about japanese automakers because they really benefited from the United Auto Workers strike in the u. S. We are now hearing we could see a tentative deal being announced any moment now with ford. John that would be great if there was a deal for the u. S. Automakers. Its going to be a very expensive deal for them but for japanese and other foreign automakers either the exports to the u. S. Or their nonunionized factories within the u. S. , it has been a bit of a boon. So Profit Margins look good for all of those companies because pricing in the states is still very firm for autos. You have got the ev factor where there are more and more doubts about the sustainability of a full eeev country anywhere in the world Going Forward given all the connections with what is going on with some of the Raw Materials and whatnot. That benefits toyota in particular because it is really the master of the hybrid automobile so many people benefit many people will prefer hybrid autos over evs which are kind of piling up in inventory. Shery the tech earnings season has been mixed at the moment and we saw alphabet, also meta being punished. Does not make sense right now, is it just a matter of valuations and if that is the case is this just a better result in the sense that they are being punished by valuations not necessarily because their business is doing badly right now . John there is some of that. Any stock that has been through hype and valuations have gone to very high levels, it gets punished. Unless its a Earnings Guidance and performance are very good. And we have seen that to some extent with some stocks but yes, earnings have been quite good for most tech companies. There have been a few exceptions but for the most part they have been quite good and it is kind of shocking to see how badly they are punished for relatively minor infractions. Shery good to have you with us chief global asset strategist at nico management. It still had j. P. Morgans global head of Payments Joins us live to discuss the future of fintech as the bank explores Blockchain Based digital deposit tokens. First Morgan Stanley names tech pick as its next ceo, more on James Gormans successor next. This is bloomberg. adventurous music be ready for any market with a liquid etf. Get in and out with dia. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Shery we have breaking news, we are hearing that Nomura Holdings are over after China Businesses losses theyre snowballed reflecting setbacks by japans biggest brokerage to expand on the mainland. We are hearing the joint venture is reassessing its strategy according to people familiar with the matter. Goals unveiled four years ago to raise its head count to 500 and become a fully licensed security house by the end of 2023 are unlikely to be achieved according to the people speaking to us. Orient International Security has already cut jobs and has seen a number of departures following a management reshuffle earlier this year. We will be watching their stock down half a percent at the moment. Paul Morgan Stanley has selected a pic to become its new ceo and succeed the previous, a three decade adventure in the firm and copresident will assume the position in january and will also join the board. For more on this where joined by our finance editor adam. A very much a known quantity, what will he bring to the role . Adam a number of things, i think if you look at his history is how he has revamped a number of businesses along the way. If you look back to what he did with the equities, the trading business back in a tumultuous period of 2008, it really gave that a fresh start and made some significant cuts and boosted the profitability of that business. If you look coming on the 2015 and what he did with fixed income he made similar improvements in terms of redesigning the business and making a lot more relevant to Morgan Stanleys customers but also to the profit of the bank as a whole. One of the big things, although he was always thought to be the likely successor or one of them, some have raised questions that he has only run the smaller areas of Morgan Stanley and gorman himself has said if you follow that line you would have never hired me in the first place. Clearly he has backed him and as we heard from our reporting, the first interview with pik since he was named ceo it was pretty clear staff gave him a standing ovation and working to get behind him. So 54, a lifelong Morgan Stanley employee. He has been through a number of iterations of the bank and understands of the change ahead, the big focus for him will be the continuation of the growth of the Wealth Management business which has become a real driver of Morgan Stanley profits as of late. Of course quite a few headwinds are building and one of those is losing market share to some big rivals like goldman and j. P. Morgan and of course the stock price is still very depressed down 16 this year. Shery what is James Gormans legacy here and what role will he have at the bank . Adam well pit comes in as ceo in january but his legacy cannot be understated. He oversaw the bank through the period of intense turmoil with the Global Financial crisis in 2008. Then later a number of other crises that came out, specifically our cagles Capital Management and their almost 1 billion loss that Morgan Stanley made in relation to that and that was a huge pr rebuild for gorman. He has faced a number of challenges, built Morgan Stanley into a bigger business than it was when he took over and that will really be his legacy. One of overwhelming success for most people. Shery our finance editor there. Deutsche bank is starting another round of job cuts as part of an effort to lower expenses and lift profitability. It ceo says new measures are expected to secede previous layoffs from six months ago. Despite the recent cuts the german lenders headcount has grown by more than 4000 this year. More coming. Were going to continue to work with discipline, we have laid out to investors a goal to run the company essentially flat for a considerable period of time. That means is we are working every day on Cost Reduction measures which at the very least should offset the impact of inflation. And also allow us to invest in businesses with our own resources. Shery ubs is expanding its coverage of small and Mediumsized Companies as part of its efforts to move up the rankings. Two Equities Research in north america, according to a memo ubs and analysts Analysts Expect a coverage of over 370 stock since 2022. The majority of which had a market value of over 10 million. The moves are help meant to help ubs become a top competitor in north american Equities Research. United overseas banks thirdquarter profit expanded on higher lending and strong fee income from wealth and credit cards. That income excluding oneoff items rose 5 to just over 1 billion from a year ago. You obese ceo warned the recent geopolitical tensions have added to market volatility but expect Southeast Asia to remain resilient. Of course we have earnings season here in the u. S. As well. Now to the latest on that after the bell result from meta. It shares reversed an earlier rally after reporting revenue that beat the street and a rebound in its core advertising business. Shares turned negative once investors heard the outlook. Su keenan joins us now with the latest, what was the issue . Su there is nothing like using the word uncertainty and volatility in your outlook and big spending ahead to throw cold water on a rally based on eight thirdquarter beat but that is what happened here. Metas cfo killed hopes of longterm recovery saying quote we are subject to volatility in the macro landscape. The revenue outlook for 2024 is uncertain. The shares which have been rallying in extended trading initially up more than four or 5 slid more than 3 as execs talked about macro concerns. That is results appeared to have shown a nice recovery from the strugglers struggles in its ad business. Thirdquarter sales of more than 34 billion handily beating the street, they also reached 2. 09 daily active users on the flagship facebook app. Met