Bloomberg Daybreak: Asia Edition

Business and finance news from the Asia-Pacific.
Apple Inc. delivered record quarterly sales and a better-than-anticipated forecast for the current period, even as the company warned that rising component costs are threatening to squeeze margins. Revenue will rise 13% to 16% in the second quarter, exceeding the 10% projected by Wall Street, driven by strong demand for the new iPhone 17, growth in services and a rebound in China.
President Donald Trump said he would be announcing his pick for a nominee to chair the Federal Reserve on Friday morning, signaling an end to a months-long process that has spurred speculation over the future of the world's most powerful central bank. Trump, asked at an event Thursday evening in Washington when he would make his decision known, responded: "Tomorrow morning." Dollar Industries declined today. But there was a lot of volatility in the foreign exchange. For a closer look, we spoke to David Finnerty, Bloomberg's Rates/FX Strategist.
Asia technology shares are performing better then their US Counterparts. Apple's results drove the positive sentiment across the APAC along with a flurry of earnings out of South Korea this past week. For more perspective on the AI trade, we heard from Herald van der Linde, Head of Asia Pacific Equity Strategy at HSBC. He spoke to Bloomberg's Annabelle Droulers and David Ingles.
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A busy day for tech earnings across Asia and the U.S. Samsung's chip business posted a sharp profit jump on strong AI demand and announced a major buyback, while SK Hynix delivered its best quarter on record. In the U.S., Microsoft shares slipped as cloud growth slowed despite record AI spending, Meta's strong ad business is funding big investments in artificial intelligence, and Tesla beat profit expectations while unveiling plans to invest $2 billion in Elon Musk's AI company, xAI. We break down the results with Daniel Newman, CEO of the Futurum Group.
And - Jerome Powell has two more opportunities to adjust interest rates before his term as Federal Reserve chair ends — and he may not need them. After the Fed kept borrowing costs on hold Wednesday, Powell talked up a "clear improvement" in the US outlook and said the job market shows signs of steadying. It signals a cautious optimism: Fed officials delivered three cuts last fall, and see nothing in the latest data to suggest more are needed to prop up the economy. For more on the outlook, we heard from Jeanette Garretty, Principal and Managing Director at Robertson Stephens. She spoke to Bloomberg's Shery Ahn and Avril Hong on the Asia Trade.
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Bloomberg Businessweek Daily hosts Carol Massar and Tim Stenovec break down earnings from Tesla, Microsoft and Meta as heard live on Bloomberg Radio and on YouTube.

Microsoft's spending surged to a record high and cloud sales growth slowed, sending the shares down amid investor concerns that it could take longer than expected for the company’s AI investments to pay off. Microsoft shares fell about 5% in extended trading after closing at $481.63 in New York.

Meta Platforms topped projections for quarterly revenue and gave a strong forecast for the current period, boosted by a robust online advertising business that is making it possible for the company to invest in artificial intelligence at record levels this year. The social-media company’s shares jumped more than 11% in extended trading. Meta on Wednesday said first-quarter sales will be $53.5 billion to $56.5 billion, beating the $51.3 billion average analyst estimate.

And Tesla plans to invest about $2 billion into xAI, giving Elon Musk’s artificial-intelligence startup a cash infusion despite a shareholder vote last year that failed to win approval. Its shares rose in extended trading.
Carol and Tim speak with:
Bloomberg Intelligence Senior Technology Analyst Anurag Rana
James Cakmak, Co-Founder and Chief Investment Officer at Clockwise Capital
Bloomberg News Senior Technology Reporter Kurt Wagner
Bloomberg Tech Co-Host Ed Ludlow
Bloomberg Intelligence Global Autos and Industrials Research Manager Steve Man
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The dollar slumped to its lowest since early 2022 after President Donald Trump indicated he's comfortable with its recent decline. "No, I think it's great," Trump told reporters in Iowa on Tuesday when asked if he was worried about the currency's drop. "I think the value of the dollar — look at the business we're doing. The dollar's doing great." Trump's comments added fuel to what was already the dollar's deepest drop since his tariff rollout sent markets into a tailspin last year and fanned fears that his erratic policy shifts would drive overseas investors to pull back from the US. After his comments the Bloomberg Dollar Spot Index extended losses to as much as 1.2%, as the US currency weakened against all of its major counterparts before steadying somewhat in Asia trading Wednesday. For more on the dollar, we heard from Robert Kaplan, Goldman Sachs Vice Chairman and Former Dallas Fed President. He spoke to Bloomberg's Stephen Engle at the Goldman Sachs Global Macro Conference Asia Pacific.
Plus - Microsoft, Meta and Tesla are among the companies expected to report results on Jan. 28 US. For more on what to look out for in the latest tech earnings and the overall AI trade, we heard from Phil Palumbo, Founder, CEO and Chief Investment Officer, Palumbo Wealth Management.
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President Donald Trump threatened to hike tariffs on goods from South Korea to 25%, citing the failure of the country's legislature to codify the trade deal. Trump in a social media post on Monday said the new rate would apply to autos, lumber, pharmaceutical products and “all other Reciprocal TARIFFS.” Under the existing agreement, the president set a 15% levy on South Korean exports.
It's an important week for earnings in Asia with Samsung and SK Hynix reporting results. Bloomberg's South Korean Equities Reporter, Youkyung Lee, discusses what the market is expecting.
Tech names including Meta Platforms, Tesla and Microsoft all report earnings on Wednesday, with Apple reporting Thursday. Zachary Hill is Portfolio Management at Horizon. He gives his take on the big week for the Mag 7, and the possibility of another US government shutdown.
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