Bloomberg Daybreak: Asia Edition

It should not be surprising that war in Iran is producing higher inflation in the US. There was higher gasoline in grocery prices sending headline CPI up last month at an annual rate of 3.8%, and that news in turn sent US treasury yields higher right across the curve. This fueled speculation that the Federal Reserve will raise interest rates next year, and bonds fell, with the 30-year yield rising to 5.03%. We heard from David Savage, Bloomberg's MLIV Strategist. Plus - President Donald Trump is expecting economic deals and a "wild" welcome this week in China. He'll arrive facing an emboldened Xi Jinping, just as his own hand is constrained by the conflict in Iran. When the US president touches down in Beijing on Wednesday evening for a 36-hour summit, it'll mark his first overseas trip since waging war in the Middle East. Over talks at the Great Hall of the People and a state dinner, followed by morning tea, the leaders will discuss trade, tariffs and the self-ruled island of Taiwan. Another agenda item, of course, is Iran. For a preview, we heard from Henry Huiyao Wang, Center for China and Globalization Founder and President speaking to Bloomberg's Haidi Stroud-Watts. See omnystudio.com/listener for privacy information.

Asian stocks edged up 0.4% to near their record as traders stayed bullish on the AI trade. Meantime, crude oil gained and bonds dropped after President Donald Trump cast doubts over the ceasefire with Iran, prolonging the closure of the Strait of Hormuz and keeping energy prices elevated. We heard from Colin Purdie, Manulife Investment Management Global CIO of Public Markets. He spoke to Bloomberg's Paul Allen and Avril Hong. Plus - Australian Treasurer Jim Chalmers aims to deliver a budget that tackles inflation, revives productivity and reins in deficits, a tough challenge at a time when fuel prices are soaring. Bloomberg's Paul Allen speaks to ANU Associate Professor Jill Sheppard for a preview. See omnystudio.com/listener for privacy information.

Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week. See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Expectations surrounding the upcoming summit between Chinese President Xi Jinping and US President Donald Trump are intensifying as it approaches. Yet, despite the heightened geopolitical stakes tied to the ongoing conflict in the Middle East, analysts and markets largely anticipate a non-event — assuming the meeting takes place at all. The two leaders are slated to meet in Beijing from May 14-15 for what is being framed as a high-stakes summit, which was already delayed once because of the war. Discussions are expected to focus on the topic of Iran as they attempt to navigate key friction points in the relationship between the world's two largest economies, including sanctions and trade barriers. For a preview, we speak to Jenni Marsh, Managing Editor for North Asia EcoGov for Bloomberg News. See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Asian equities climbed to a record, powered by a rally in Japanese stocks on their return from a break, as optimism grew that the US and Iran were nearing a deal to end the conflict that had rattled markets and clouded the economic outlook. Easing tensions in the Middle East have helped global equities erase war-driven losses and push to fresh highs, as falling oil prices eased inflation concerns and revived momentum in the artificial intelligence trade. For more on the outlook on oil, we spoke to Steven Stapczynski, Bloomberg's Asia Energy Team Leader. Plus - The US and Iran were circling around a fresh proposal to end the war on Wednesday, as President Donald Trump searches for an exit from a conflict that has elevated energy prices and damaged his political standing. Washington has presented a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports, according to a person familiar with the measure, who asked not to be identified discussing sensitive information. Detailed negotiations over Iran's nuclear program would come later in the process, the person said, adding that nothing has yet been agreed upon. We heard from Barbara Leaf, Senior International Policy Advisor at Arnold and Porter speaking to Bloomberg's Haidi Stoud-Watts and Shery Ahn. See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Stocks climbed to a record after President Donald Trump signaled progress toward a final agreement with Iran, adding fresh momentum to markets already buoyed by a rally in technology shares. Crude oil declined. We spoke to David Finnerty, Bloomberg's FX and Rate Strategist. President Donald Trump said he would pause a US-led effort to help stranded ships exit the Strait of Hormuz to see if an agreement with Iran to end the war could be reached. "Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed," Trump said in a social media post on Tuesday. A US blockade of ships transiting to and from Iranian ports would "remain in full force and effect" despite the pause in the US-led effort to help stranded ships. For more analysis, we heard from Kirsten Fontenrose, Strategic Advisor at Systems Planning and Analysis. She spoke to Bloomberg's Shery Ahn and Haidi Stroud-Watts. See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Crude oil held its gains as the US and Iran exchanged fire, jolting a four-week-old ceasefire and raising concerns that Middle East tensions could escalate again. Brent edged 0.5% lower to just under $114 a barrel at the open Tuesday as escalating tensions around the Strait of Hormuz raised fears about high energy prices and global inflation. Australian shares opened lower, with markets closed in Japan, South Korea and mainland China. US equity-index futures were little changed after the S&P 500 Index retreated from its record on Monday. We spoke to Paul Dobson, Bloomberg's Executive Editor for Asia Markets. And for more on the markets, we heard from Kyle Rodda, Senior Market Analyst at Capital.com speaking to Bloomberg TV hosts Paul Allen and Shery Ahn. See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Markets opened on an optimistic note after President Donald Trump said the US will begin guiding ships not involved in the Iran conflict through the Strait of Hormuz from Monday. However, a senior Iranian official warned that Tehran would consider any US interference in the Strait a ceasefire breach, according to an AFP report. For more on the markets, we heard from Dilin Wu, Pepperstone Research Strategist speaking to Bloomberg's Haidi Stroud-Watts and Shery Ahn. Plus - Japan's prime minister is visiting Australia to strengthen ties with one of her country's strongest allies as she seeks to build on an updated regional strategy laid out in Vietnam. Sanae Takaichi touched down late Sunday local time in Canberra for the three-day visit, which will focus on defense, critical minerals and broader economic security. The two countries have grown increasingly concerned about the changing security and economic environment in the region, with Japan taking a more assertive military stance and looking to build economic ties and stable supply chains with nations such as Vietnam. We heard from Tobias Harris, Japan Foresight Founder and Principal speaking to Bloomberg's Haidi Stroud-Watts and Shery Ahn. See omnystudio.com/listener for privacy information.

Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week. See omnystudio.com/listener for privacy information.

Apple delivered second-quarter revenue that edged past analysts’ estimates, helped by demand for the iPhone and Mac, while failing to produce the blowout results that some investors were anticipating. Revenue gained 17% to $111.2 billion during the period, which ended March 28, the company said in a statement Thursday. Analysts had anticipated $109.7 billion on average. Apple itself had projected sales growth of 13% to 16%. The company is benefiting from a series of new products launched in March, including the MacBook Neo, iPhone 17e, updated iPad Air models and a fresh MacBook Pro. The $599 Neo — Apple’s first major push into low-cost laptops — has been particularly popular and remains sold out at several retailers. Still, the results were uneven. Apple fell short of expectations in the Americas and Europe regions, while exceeding projections in China and other parts of Asia. The iPhone — its flagship product — was in line with the average Wall Street estimate. For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with: See omnystudio.com/listener for privacy information.

US equity futures rose, reversing earlier declines, helped along by late-market gains in Alphabet Inc. and Amazon.com Inc. Meanwhile, Meta Platforms Inc. shares slid in post-market trading alongside Microsoft Corp., keeping alive lingering concerns over artificial intelligence spending. We heard from Maribel Lopez, Lopez Research Founder and Principal Analyst. She spoke to Bloomberg's Shery Ahn and Haidi Stroud-Watts. Plus - Federal Reserve officials left interest rates unchanged, but revealed a deepening division over the outlook for policy amid increased uncertainty caused by the conflict in the Middle East. Four officials voted against the decision, including three who objected to language in their post-meeting statement that suggested the central bank would eventually resume cutting rates. In what will be his last press conference as Fed chair, Jerome Powell said he intends to remain at the central bank as a member of its Board of Governors. We heard from Jeanette Garretty, Robertson Stephens Chief Economist. She spoke to Bloomberg's Haidi Stroud-Watts and Shery Ahn. See omnystudio.com/listener for privacy information.

Four of the biggest companies in the US: Alphabet, Amazon, Meta and Microsoft all reported earnings after the bell. - Meta Platforms shares slid after the company raised its spending outlook for the year, reigniting fears that the historic levels of investment it’s making to build artificial intelligence models won’t pay off. - Microsoft's cloud business reported growth that narrowly beat analysts’ estimates, disappointing investors concerned that the company isn’t fully capitalizing on demand for AI services. - Amazon spent more than anticipated to expand data center capacity in the quarter, fueling the fastest sales growth for its cloud unit in more than three years. - Alphabet (GOOGL) reported quarterly revenue and profit that beat projections, fueled by strong growth in its cloud computing unit, signaling that the internet giant’s unprecedented investments in AI infrastructure are beginning to pay off. For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with: See omnystudio.com/listener for privacy information.

Bloomberg's Tom Keene and Jonathan Ferro and Lisa Abramowicz discuss remarks from Fed Chair Jay Powell following the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance. Federal Reserve Chair Jerome Powell said he’ll remain at the central bank as a governor after his term as chair ends. “After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined,” Powell said Wednesday at a press conference. While Powell’s term as Fed chair ends on May 15, his seat on the Board of Governors doesn’t expire until 2028. “I plan to keep a low profile as a governor,” he said. “There is only ever one chair of the Federal Reserve Board. When Kevin Warsh is confirmed and sworn in, he will be that chair.” See omnystudio.com/listener for privacy information.

Bloomberg's Tom Keene, Jonathan Ferro and Lisa Abramowicz break down the Federal Reserve's latest policy decision on a special edition of Bloomberg Surveillance. Federal Reserve officials left interest rates unchanged, but revealed a deepening division over the outlook for policy amid increased uncertainty caused by the conflict in the Middle East.Four officials voted against the decision, including three who objected to language in their post-meeting statement that suggested the central bank would eventually resume cutting rates. See omnystudio.com/listener for privacy information.

The United Arab Emirates will leave OPEC next month, in a significant blow to the group that raises questions about its future at a time when the industry is grappling with the massive supply disruption caused by the Iran war. We heard from Hartmut Issel, UBS Wealth Management Head of APAC Equities and Credit speaking to Bloomberg's Shery Ahn and Haidi Stroud-Watts And - Japanese electronic components maker TDK posted 4th quarter sales and operating profit that beat consensus, but the full year outlook fell short of the average analyst estimate. TDK CEO Noburo Saito spoke to Bloomberg's Shery Ahn. See omnystudio.com/listener for privacy information.

In Singapore, business leaders are gathering in Singapore today for a Bank of America conference focused on technology. Front and center are the fallout from the Iran war and where AI investments are headed. Bernard Mensah, President of International for Bank of America spoke to Bloomberg's Haslinda Amin at the event. And - Asian stocks held near their highest level since late February as traders awaited the next catalyst in the Middle East and central bank decisions. Meantime, CLSA has released a new portfolio about China's supply chain resilience amid the ongoing geopolitical tensions. Shihao Li is CITIC CLSA A-Share Strategist and he spoke to Bloomberg's David Ingles and Avril Hong See omnystudio.com/listener for privacy information.

Crude oil pared gains and Asian stocks extended advances after a report said Iran offered the US a new proposal to reopen the Strait of Hormuz, lifting sentiment after efforts to restart talks stalled. We spoke about the markets with Jasmine Duan, Senior Investment Strategist at RBC Wealth Management Asia, speaking with Bloomberg's Haidi Stroud-Watts and Shery Ahn And - South Korean Trade Minister Yeo Han-koo speaks with Bloomberg's Shery Ahn on The Asia Trade on reducing dependence on the Middle East. See omnystudio.com/listener for privacy information.

Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week. See omnystudio.com/listener for privacy information.

Intel gave a strong sales forecast for the current period, signaling that the struggling chipmaker is finally beginning to benefit from the giant build-out of artificial intelligence infrastructure. Revenue will be $13.8 billion to $14.8 billion in the quarter ending in June, the company said Thursday in a statement. Analysts, on average, estimated $13 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be about 20 cents a share, compared with a Wall Street prediction of 9 cents. The upbeat outlook suggests that Chief Executive Officer Lip-Bu Tan is making progress on a challenging comeback plan. After lining up major investments in Intel last year — helping to strengthen the company’s balance sheet — Thursday’s results suggest he’s now delivering on a promise to improve its operations. Intel shares rose 14% in extended trading. The stock had gained 81% this year before the results were released, closing at $66.78. For instant reaction and analysis, Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec speak with: See omnystudio.com/listener for privacy information.

Business and finance news from the Asia-Pacific. Stocks and crude oil swung at the open in a nervous start to trading in Asia, as lingering concerns about the war in Iran clashed with strong corporate earnings that are helping steady investor sentiment. We spoke to Mark Cranfield, Bloomberg's MLIV Strategist. Plus - SK Hynix Inc. reported a five-fold jump in quarterly profit and reiterated plans to ratchet up its capex "significantly" this year, underscoring surging prices of memory chips that underpin global artificial intelligence development. The Korean chipmaker is riding an AI spending boom that's reshaping the memory sector and offsetting fears around supply chain disruptions stemming from war in the Middle East. The outperformance comes as investors debate whether the advent of AI is igniting a super-cycle of demand that will help SK Hynix and its rivals break a decades-old cycle of boom and bust. We heard from Tom Kang, Counterpoint Research Director. He spoke to Bloomberg's Paul Allen and Haidi Stroud-Watts. See omnystudio.com/listener for privacy information.