Quarterly Sales Outlook below expectations. Sk hynix, preparing to plow almost 15 billion into a new factory. Plus the yen slipping below 155 to the dollar for the first time in three decades and that is putting intervention watchers on high alert. Also just getting some news right now. It is First Quarter gdp numbers out of south korea. A prettier handy beat as well come expanding 1. 3 on quarter. The expectation was a much more modest. 6 increase on a yearly basis. That is a 3. 4 expansion. Leading the way a party Strong Performance from manufacturing up 6. 6 on year. Services also up 2. 1 on year print we saw a recovery in south koreas construction sector up 4. 8 although construction still a little weaker on year as well. Overall a prettier handy set of numbers for the First Quarter for south korean gdp. Lets take a look on how markets are setting up for this thursday in the asia pacific. We are trying to get a hold of avril hong at the moment but as a quick note, there is no trading in australia or new zealand today. Both of those markets are closed for the anzac day public holiday. Elsewhere we are seeing futures for japan looking a little soft right now. And we have to keep a really close eye on the yen today after it fell through briefly the 155 to the dollar level. And of course there was a bank of japan meeting today so we are going to see if we get any sort of policy measures to put a floor under the yen. For now lets talk more about the big earnings story of the day. It was metas results and kurt wagner joins us now. A little bit of disappointment on the revenue front end meta has a few expenses coming up as well. Walk us through the highlights. Kurt the Biggest Issue is probably the expenses. They raised guidance for the year. It was going to be somewhere between 30 billion to 27 billion. They say this is arc zuckerberg said from what i have seen on the teams and will have done around our Large Language Models and other ai products, i feel really excited about this and so i am going to be spending more money than anticipated. Most investors got this update in q1. Meta had this issue where they were overspending and they had a year of efficiency but brought everything back in theres probably some concern they might get over their skis as they are plowing more money into these investments that dont really bring revenue back to the table right away. Paul we saw shares dropping 19 after hours as well. How is analyst and investor enthusiasm around this stock . Kurt it speaks for itself. This idea that Mark Zuckerberg is pleading for patience from investors, he said this several times on the phone today. He was saying, a quote unquote smart investor see the benefits of this longterm but you have to work with them and them some time to figure this out. Some people are probably a little skeptical of that pitch because what we saw a few years ago with the metaverse. We saw Mark Zuckerberg say the metaverse will be this big thing, you just have to believe in me. That has not materialized. The stock has done great but for other reasons. So if there is some scar tissue when you think about the company has done over the last couple of years with their spending and what Mark Zuckerberg is pledging to people today. Paul all right. Bloomberg Technology Reporter kurt wagner on the meta earnings. Our next guest is cautious on the ai sector as well. Joining us now from singapore. I want to start with may be teasing out the meta earnings a little more. Is this a bit of a metaphor for the sprays space more broadly for you because i know you have been liquidating some of your tech positions in the u. S. Why is that . Beginning in march we noticed the data coming in justified for maybe two rate cuts this year. As we entered april we noticed that we might not get any rate cut at all. And data came in from the ecb laying ground for one rate cut during the summer. And that would dramatically increase the value of the dollar as the Interest Rate differential widens. That is going to put a lot of pressure on ai stocks. So early april we liquidated artech position but relies to be strong dollar affected differently. So we still maintain auto companies. Paul i want to pause for a moment because we are just getting the keenly awaited earnings from sk hynix. First quarter operating profit has beaten estimates. 1. 9 2,000,000,000,001 for the quarter, a huge beat. The excitation was for 916 billion yuan. A really handy beat of almost one trillion yuan. First Quarter Sales, a narrow beat. The expectation was just shy of 12 trillion yuan. The operating profit, 2. 89 trillion yuan. Yeah, thats getting almost doubled estimate of 1. 8 trillion yuan. So, really big numbers from sk hynix for the quarter. I want to get your reaction to those numbers. I know you probably have not had a lot of time to digest them. You were a little skeptical of the ai rally but if you look at a stock like sk hynix, are you tempted to buy into that . Jung i think if you look closely most of it will come from fx and loss reversion. That is concentrated in the First Quarter. We are not going to get it in the second or Third Quarter. So going forward, is this going to change our earnings forecast for sk hynix . I am a bit cautious on that. So there is good news. Definitely it will affect the price today. However, if we see the stock price pop this morning, it is a Good Opportunity to take some profit and liquidate. Paul so if you are taking profit from some of these big chip names, where do you put that money to work instead . Jung i think the strength of the u. S. Dollar will continue to go on. And we are seeing new treasury issues, further worsening of the Interest Rate outlook. We are looking for a sector that will perform well when the dollar strengthens. Theres exporting companies in japan and korea where local weakness can contribute to the escalation of the stock price there. Paul ok. So do you have any particular names for us, or any particular sectors . Jung we like the auto sector. And in korea as well. We like to buy kia, and hyundai motors. The auto sector in general will be good but supported by the weaker currency. We will see cash flow coming in the second and Third Quarter as well. Paul ok. Just want to tease out your thoughts a little more on currencies and centralbank action. I know you believe the chances of fed easing this year are a much on. So that means enduring dollar strength. But if we want to look at another side of the u. S. Currency dollar payout, what about the yen . We are seeing levels we have not seen since mid1990. What is your outlook for the year . Jung just a few months ago, traders were betting whether the yen would break through the 150 level. Nowadays 155. So a lot of change in just a few months. I think the boj is preparing to intervene. So that could provide some shortterm relief for the strength of the yen, which has already lost too much ground. However, it is not about the yen, it is more about the u. S. Dollar. If the ecb cut rates in the summer in the Interest Rate differential between europe widens, we will see more strength of the dollar coming in. I think the boj will act very cautiously if they do it, they will do it at the perfect timing. Paul with the fed looking less and less likely to ease this year, if they do certainly towards the end of the year, is there a window for the boj to perhaps act a little bit more aggressively . This is our bloomberg question of the day. Do you see the bank of japan or the fed moving rates more in 2024 . Jung so, probably we have a very slim chance of any rate cut this year. Somebody is already talking about a rate hike but i think they remain a minority. However, in this market the greed can be taken over by fear very easily. And we have ecb moving into cut rates in the summer. From the perspective of the boj, the right time to intervene is probably later Second Quarter when the ecb makes the move. Paul just in your view, is intervention really worth it . There is always a risk you just give traders a more attractive selling price. Jung true but we also have to be cautious about what other big players are doing. So if you go out with a lot of fire on your back will pose a lot of risk. Obviously the boj does not want to embarrass itself. They will act very consciously and i am prettier sure they are looking for the right moment to intervene. Paul all right. Jung in yun, thank you so much for joining us today with your insights on both Central Banks and also some of those tech names. On that note, lets recap the lines we have been getting out of sk hynix. The operating profit come at 2. 8 trillion yuan. The expectation was for 1. 8 trillion yuan. Sk hynix believes it has entered a phase of a clear rebound. The overall memory market to be on a steady growth path. The market now entering into a full recovery cycle, according to sk hynix. Also 2024 capex it says is going to be somewhat higher than planned, and we have already heard sk hynix is going to spend about 14. 6 billion on building a new fad in south korea to meet ai demands. So impressive set of numbers from sk hynix. We are going to have more analysis on those earnings and also the broader outlook for chips a little bit later on with Market Research firm counterpoint. First, tiktok, the clock is ticking to fight the u. S. Invest or ban bill. Details on the 270 day countdown coming up next. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates, exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh paul we have been hearing from sk hynix this morning with First Quarter results containing prettied impressive headline numbers. With some more analysis, lets get over to avril hong in our singapore studio. Avril yeah, impressive i think is the right word to use here. We saw that beat on sales and profit and this is coming against the backdrop of their concern about just whether this chipmaking demand is coming back. As we heard from tsmc for example last week that their guidance really disappointed and caused a rout in the markets as well as the broader tech sector. So today hearing from the likes of sk hynix is likely to reinvigorate some of that optimism towards the sector. We are of course seeing that number coming through thanks to the highend chip demand. That speaks to what we are seeing on the ai sector, especially as we have the likes of meta and its outlook disappointing, raising the question here really, when do we see the monetization of the Artificial Intelligence investments . For now it looks like from the likes of sk hynix, a more positive flow coming in from the ai front. And as you know, this is a star that has seen a massive runup in the past year or so. Paul yes, it certainly has. Shares up Something Like 27 yeartodate. Thank you very much. We will have plenty more on those sk hynix numbers coming up later. We are going to get more analysis on the results with Market Research firm counterpoint shortly. Tiktok says it is getting ready to challenge that law, surprise surprise, that would ban the app in the u. S. Unless its chinese owner bytedance sells their stake of the company. President biden signed the bill wednesday as part of a larger foreign aid package. Rest assured, we are not going anywhere. We are confident we will keep fighting for your rights in the courts. The facts and the constitution are on our side, and we expect to prevail again. Paul lets bring in our tech reporter alex barinka now for more. Completely unsurprising also that bytedance is getting ready to fight this divest or ban legislation. But it is doing so on a constitutional basis. This is shaping up to be a prettied interesting legal battle now. What are bytedances chances of success . Alex there might be multiple fights in this battle from bytedance and tiktok as well as some of his supporters. We have some clues as to how this might play out from a prior legal fight. The state of montana in the u. S. Had a built in place that would have banned the app in the stat e. Not only did tiktok file a lawsuit, but they funded a group of users who filed a second lawsuit. The judge ultimately through that one out, but that might give some clues as to the types of people, whether it be users who see their First Amendment rights being infringed upon, or merchants saying they are being economically disadvantaged, who might take this to the courts. You asked what the chances are. We put a win on some of these arguments at only 30 . So, not quite as bullish on a win as you heard from the tiktok ceo there. Paul ok. So if the analysts are correct and bytedance loses this legal action and is forced to divest, who buys tiktok and what happens to all that data in the algorithm . Alex the law does not specify who the owner needs to be, it only specifies what cannot bp it cannot be somebody listed as a foreign adversary to the u. S. Who holds 20 , as bytedance does. What that could look like could span a number of options. You can see a consortium of different buyers who are venture capitalists. I think having a Single Company actually by this asset would be potentially the most difficult Case Scenario because of the antitrust regulator here in the u. S. Has been so fierce in making sure that the existing american Big Tech Companies do not get too big. So that option is the option that bytedance of course wishes to be the option of last resort. For any buyer, whether it is a consortium and or not, the algorithm would be the most important piece. That is something that neither bytedance nor the Chinese Government wants to let go of. So this is a battle that will continue to have twists and turns not only on the legal basis but also if tiktok ends up losing in the courts and is forced to either face a divestiture for a potential sale if that ban does not happen. Paul what is the worst of those two options. Neither is particularly appealing, but if you take a ban, there is always the chance of coming back again later. Alex the u. S. Is voting in the president ial election in november. Joe biden is the leader on the ticket for the democrats, donald trump is leading the republican party. Trump has changed his tune in recent weeks on tiktok. He has come out and said he thinks it should stay, even though he first tried to ban the app in america. So trump ends up in the president ial seat next year, this divestiture timeline clock ends the day before inauguration. So, any kind of decision here could end up being either enforced or further evaluated in with a different president in that seat if somebody like donald trump is able to beat joe biden in the november election. Paul tech reporter alex barinka , thank you so much for joining us on the tiktok ban legislation. We are going to dive into how that could impact ties between washington and beijing, with Eurasia Group in the next hour. You can get a roundup of the stories you need to know to get your day going into todays edition of daybreak. Terminal subscribers can use the command dayb. This is also available on mobile in the bloomberg anywhere app, and you can customize your settings so you are only getting news on the industries and assets you care about. This is bloomberg. When you own a Small Business every second counts. 120 seconds to add the finishing touches. 900 seconds to arrange the displays. If youre short on time for marketing constant contacts powerful tools can help. You can automate email and sms messages so customers get the right message at the right time. Save Time Marketing with constant contact. Because all it takes is 30 seconds to make someones day. Get started today at constantcontact. Com. Helping the small stand tall. Paul lets get a quick check on some of the stories that we are tracking today. The Israeli Military says it struck about 40 sites linked to hezbollah in southern lebanon. This is an apparent escalation of the almost daily skirmishes between the sides since the start of the war in gaza. The barrage came a day after the iranian backed militant group staged the deepest attack inside israel since the conflict began in october. The u. S. Secretary of state has arrived in china on a mission to press beijing on issues including a support for russia and industrial overcapacity. Antony blinken will meet Senior Communist Party officials in shanghai on thursday, and then he will head to beijing for a possible facetoface with president xi jinping. The hawkish u. S. Election campaign is testing a stabilization in ties broker last year by xi and President Biden. And President Biden has signed a 95 billion National Security package into law that includes fresh assistance to ukraine. The move allows the u. S. To quickly resume arms shipments to ukraine. Officials also knowledge and for the first time that they will include a longer Ballistic Missile system that has long been sought by kyiv. All right. Lets take a look at the currency space where a lot of the action is happening at the moment. Dollar strength continuing to be a theme. We have got the aussie right now just hovering below . 65 u. S. It did cross that threshold yesterday when we got a slightly hotter than expect it cpi print, suggesting the rba will not be adjusting its policy anytime soon. But the yen is the one we are really keeping an eye on. That has crossed the 155 level, and that is the first time that has happened since june 1990. So were now firmly in intervention territory. We are watching for any action from the ministry of finance, or potentially the bank of japan. They are starting a policy meeting today. That is our bloomberg question of the day in fact. Will the boj or the fed move rates more in 2024 . Thats a question i never really thought we would be asking. But there is perhaps an opportunity here for the bank of japan to be more aggressive in what it does with rates, with the fed easing bets now, backing off more and more as the year grinds on. Now, that other currency payer that we are watching there is the chinese yuan versus the japanese yen. Now, this is also at a record high. This is perhaps an even more important fx peer for japanese exporters than the dollar. We see there that the offshore yuan has reached 21 per yuan. That is a record. Ok. Still to come, we dont have any market trading in australia or new zealand today, we are closed for a public holiday. But we are going to talk more about that ai wave. We just got numbers from sk hynix and a very solid set of numbers they were. A beat on pretty much every front. We are going to get analysis on those numbers in just a moment. Tom kang is going to be joining us. Stay with us for that conversation. This is bloomberg. Her uncles unhappy. Im sensing an underlying issue. Its tmobile. It started when we tried to get him under a new plan. But they they unexpectedly unraveled their price lock guarantee. Which has made him, a bit. Unruly. You called yourself the uncarrier. You sing about price lock on those commercials. the price lock, the price lock. so, if you could change the price, change the name its not a lock, i know a lock. So how can we undo the damage . We could all unsubscribe and switch to xfinity. Their connection is unreal. And we could all unexperience this whole session. Okay, thats uncalled for. Paul sk hynix, as we have been hearing, was the First Quarter that beat average analyst estimates. The company says the overall memory market is entering a full recovery cycle and running steady. Just to give you an idea of some of the headlines, operating profit, 2. 80 9 trillion. The estimate was for 1. 8 trillion. Lets get more on that analysis from the Research Director at Market Research firm counterpoint. Most of the i. T. Market is now in recovery mode, and we can see sk hynix benefiting from the ai drive market. Specialized memory chips are fully used by the main ai chip vendors and server manufacturers , so you can say that sk hynix is really enjoying this recovery. Paul sk hynix is in a very good position now. Do you feel like it is doing enough to defend its leadership in that high band with . Some of its competitors including samsung in south korea, are really building up investment as well. Yes. They are really pushing highbandwidth memory, and it has developed it years before its competitors, and it has a really Good Relationship with vendors like nvidia, and that relationship is not going anywhere. We see that this years hbm is fully booked, so they are out of capacity and need to build more. Sk hynix is really investing more in this sector, and you can see hbm is a customized form of memory, so its different from what samsung has been doing. It will be a little bit different for samsung to completely switch over to this new type of memory. Paul what we heard earlier from sk hynix before these results were announced, the their plans to invest to build a new facility in south korea, but if we look at this chart, we can see that has actually been slowing, never mind that big announcement capex has actually been slowing, never mind that big announcement. Had been investing previously , and now most of the manufacturing it had invested in the past in korea is now almost completed, so the new investments that they are now seeing are plants like the u. S. Indiana plant. You could say could see more to come from sk hynix and what they have previously invested, we will now see an increase in their capacity at the end of this year next year. Paul how do you feel they are placed in getting more of the u. S. Chip grab . Currently, sk hynix is not receiving any chip grants from the u. S. Government, but if you look at their announcement, they have announced they are building a new plant in indiana, and this is for advanced packaging. Advanced packaging is one of the areas that existing manufacturers are not investing, so its a very good move. Packaging is not sufficient in the u. S. , so we will probably see cases where chips are manufactured in the u. S. But have to go back to taiwan or korea for packaging and come back because packaging is that last step, and we dont see a lot of Companies Investing in packaging, so this will help sk hynix build better relationship, and we think the chance of sk hynix receiving a u. S. Grant will go up with its new indiana plant. Paul we talked earlier about the highbandwidth chip. How about some of their other products . How do you see them performing in coming quarters . One of the biggest sectors for sk hynix is the smartphone sector. We are seeing the smartphone sector really recovering. This year, smartphones is in full recovery. Memory prices are also rising, so the majority of sk hynix products will see higher revenue and higher profit. Hbm, even though it is 10 , 15 of its revenue, profitwise, it takes a large chunk because its very expensive. Paul in terms of profit, i know you are expecting a recordbreaking year from sk hynix. What is your outlook for fullyear results and how much higher do you see the stock potentially going . This year will probably be sk hynixs best year ever. The First Quarter was amazing, but we see more to come in the second, third, fourth because hbm is fully sold out for this year. As soon as sk hynix manufacturers more, clients will be in line to get it, so we are thinking about 61 trillion, 62 trillion for the full year, and Profit Margins will also be very high. It will be above 20 in our view. 22 profit margin for this year. Paul we will have to leave it there. Thank you so much for joining us with your insights. Tom is Research Director at counterpart, joining us from seoul. A Chinese Ai Development backed by google on its hong kong debut, marking the third stop to flop in the city this week. Shares closing 3 lower. The disappointing day piles pressure on an ailing Capital Market which saw profits from new listings slump last year the most in more than two decades. Finally, and shares tumbling in late trade with weak consulting unit sales overshadowing its acquisition of i software firm. First Quarter Sales gained just 1 from the same period last year. Its ibms largest deal since it bought red head in 2019. Still to come, a japanese fintech startup tells us where they are seeing growing opportunities. We speak with the ceo of money forward next. This is bloomberg. When you automate sales tax with avalara, you dont have to worry about things like changing tax rates or filing returns. Avalarahhh ahhh but starting it eight months pregnant, thats a different story. With the chase ink card, we got up and running in no time. Earn unlimited 1. 5 cash back on every purchase with the chase ink business unlimited card from chase for business. Paul lets check on how markets are setting up for this thursday. What are we watching . A couple of things we are watching, including those earnings. As we got those numbers from meta, it did beat on earnings per share, but ultimately it was the outlook that disappointed. That coming along with it saying it will spend billions of dollars more in investments, really raising concern about the long and winding road for monetization of these Artificial Intelligence investments. We are seeing the stock of metareally get punished by traders in the after hours. Lets take a looking at what we are seeing in the u. S. Features u. S. Futures. We had a market really struggling to gain traction during the session, investors keeping and i out for that data an eye out for that data coming from investors today, including gdp, and this could shape the path of the federal reserves monetary policy. We did not see much of a strong move, but u. S. Futures pointing to that lower open and we are watching for this to potentially trickle through into what we see in the asia session. Nikkei futures in singapore already pointing to that decline in the start of trade. Of course, there are a couple of things we are watching. Its not just about earnings but also what we are seeing with the japanese currency as it has weakened past that key 155 level. Remember when 152 was seen as that line. Now we have gone way past that, but there is some skepticism in the market about exactly where they will be intervention, and there are a couple of things at play here. Among them is just the timing of it all, especially as we are waiting tomorrow for that boj decision, especially, and also tokyo cpi numbers. Add to that, if any intervention will be effective given that the last time we saw intervention from them was 2022 and back then, flows look very different. Lets flip the board and take a look at the rupiah as well because bank of indonesia did come through with that surprise hi taking the rates to a record, and this is, of course, in defense of the currency, and it hopes to bring currency against the greenback down below that 16,000 key psychological level. The fed narrative, all these in the mix. Paul lets get a little bit more on the yen and other markets as well with steven chu, who joins us now. I want to pick up on the point about the rupiah. Thank indonesia certainly not shy about springing surprises and movement pretty aggressively to the currency. The question is, will it find a floor . There are some other levers that bank of indonesia can pull. Obviously the hike yesterday was a surprise, but it has actually the license to do that just because indonesia like the other asia Central Banks, their policy is to maintain the stability of the currency pair thats why with the rupiah under pressure against a small dollar, it makes total sense that they have to hike and they may even have to hike further in the second half if the dollar stays long. We saw from the forecast that the reason they are doing this is because they only expect the fed to heighten once, which is even more hawkish than the rest of the market. They may have to intervene as well as hiking rates together in order to fight the strong dollar. Tom interesting type paul interesting timing as well, bank of indonesia springing the surprise right on the eve of the bank of japan policy meeting, perhaps showing policymakers how it is done. If japan really wants to put a floor under the yen, is the scene set for bank of japan to pull off an aggressive move here . What are the chances of it happening . As you mentioned, indonesia would have to target a currency, but for japan and a lot of asian Central Banks, they dont really have the mandate to support the currency, so they would do it through direct intervention. The japanese market is waiting for them to come out. I think tomorrow they will stay on hold. Of course, they will still hike rates in the second half. The base case is they will hike by 40 bibs in the second half. But not tomorrow. Tomorrow they will have to lay out a very hawkish message. At least helping to support the yen, but that will not be enough. I think after the market digests the decision tomorrow, the yen will be under pressure again. Thats why we are waiting for the boj to see if they will have to intervene. Paul japanese fintech startup money forward says the bojs move to raise rates is driving me investors to invest that cash in a more inflationary environment. The ceo told us exclusively about the companys growth plans and the impact of Corporate Governance reforms. We have a very strong mission, vision, and value culture. Our goal is to become the number one platform for peoples money, so i think the most important factor for our growth is that everyone is focused on the same goal creating good products, delivering good products, and providing support. You have been active in m a. What is your strategy, and what is your . What is your next one . Money forward is a fintech or softwareasaservice Company Whose products are used by 15 million individuals and 3000 corporations. We also offer finance services to improve the flow of money, but in order to further improve our services, we are developing a new Service Called embedded finance. For example, when you shop on ecommerce, payment is just one click away. We believe fintech will be the next growth driver for corporate services. Money forward collects data on households. What has been the impact in your view after bank of japan expressed a negative rates on these families . What is happening now is that individuals are realizing that Interest Rates are rising, and when Interest Rates are rising, the value of their money is decreasing, and theres an awareness of the need to invest. Its said that personal assets now amount to 1000 trillion yen, and i have a feeling theres a lot of activity going on in this area. In response to this, we have been offering responsive investment for individuals and have also offered a joint venture. You have talked in the past about how startups could potentially change society. Do you think japans improving Corporate Governance could maybe play into that, help . I believe that startups are one of the drivers that will help Japanese Society move forward in the kishida cabinets start up plan is a very good policy. In terms of Corporate Governance, a single factor such as the Tokyo Stock Exchange pushing companies for a p p ratio of less than one, submitting proper growth, upgrading the Corporate Governance code, etc. , are very important. Since cooker governance with japan has improved considerably as a result of these factors, its natural to ask if management is taking appropriate risk, if a company has enough assets, and if it can properly shift its management positions. In that sense, i think Corporate Governance has been revitalizing the japanese economy. You have also been vocal about globalization. What are you doing at money forward to make this a Global Company . Our top priority is, of course, to become number one in japan, but due to declining birth rates and aging population, we need to expand our business in Southeast Asia and the u. S. We would like to become a company like sony and toyota, so we are taking on this challenge looking five to 10 years ahead. Im from sony and i would like to create an excellent product that will catch up with and surpass sony. Paul that is money forwards ceo speaking exclusively with our colleague. We have more to come on daybreak australia. This is bloomberg. Paul airlines in the u. S. Will have to provide automatic refunds to travelers if flights are canceled or altered. Under new department of transportation rules, passengers are entitled to refunds for all travel to, from, and within the u. S. Secretary of transportation Pete Buttigieg announced the policy. The Bidenharris Administration is requiring that if an airline cancels or significantly delays your flight, within seven days they will be required to provide an automatic refund to the credit card you used to book it without you having to call or wait on hold or serve through digital paperwork or haggle with that airline. Paul moodys downgraded boeings credit score to one notch from junk even after the aircraft maker Beat Estimates for firstquarter earnings. The downgrade comes after boeing said it had burned through close to 4 billion in cash as quality issues plague output. George ferguson joins us. Pretty scathing report from moodys saying inadequate performance, noting that cash burn, as we said. What does boeing need to do to turn the situation around . I think they got to get the production process going again. Right now, boeing is in the middle of their own review of manufacturing to satisfy a request that they could come up with a plan to stabilize production, so part of that, they slowed production way down. What is happening as well as they are trying to keep the supply base flowing at the same time so suppliers continue to build that array rate of roughly 30, so boeing has to buy supply they are not turning into airplanes into cash. Next quarter will be another sizable burn, the same amount, but right now they are about 7 billion in cash and equivalent. Paul we are about to hear from boeings major competitor airbus as well with firstquarter announcements do today. Plenty of demand for airbus planes, but some challenges in terms of costs, right . Plenty of demand for both boeing and airbus, but, yeah, airbus is performing a lot at her. The supply chain has been healthier. All across the industry, though, they are having supply chain problems. They may not be as acute as boeing, but they are still having difficulty holding down margins. It will be better than last year but it will not be prepandemic levels out of airbus. Paul Bloomberg Intelligence senior air analyst. Coming up, we will find out why the fed, the ecb, and the boj are on track to cut rates later this year. We are counting down to market opens in seoul and tokyo. Thats happening in about four and a half minutes time. We will not be having any trade in australia, today, though. Close for a national holiday. This is bloomberg. When i was your age, we never had anything like this. What . Wifi . Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Its an amazing thing thats walltowall wifi with xfinity. When you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five million peoples lives, its overwhelming. Its everything. Paul this is daybreak asia and we are counting down to asias major market open sprint plenty of things to keep an eye on this morning. We heard from sk hynix which is after is blowout results for the First Quarter. That will be keenly washed but also we are going to keep a close eye on the yen. We have a bank of japan meeting about to start today and the yen punching through numbers we have not seen in over three decades. Avril absolutely. And that is bringing those intervention jitters back to the fore. But as you say, it is also about earnings. Just remember how tesla really helped to reinvigorate the markets with its plan. Meta potentially spoiling the party. But we have the opening in korea. As you mentioned, those earnings from sk hynix seem to be working their way into the markets. It is not just about how the Company Seems to be doing well with their advantage because it is seen as a leader any highend memory chip market cor