we are counting down to the major market opens. rhetoric that good news is bad news for this goldilocks rally. we see that kind of pullback in sentiment and a lot of warnings including from morgan stanley's wealth management arm. saying that you should stay away from the overboard s&p 500. what does that mean for mega tech big caps in the u.s. if this coldly low scenario starts to fade? paul: that is still holding together. we will have three rate cuts this year. not just yet. i think the market is starting to reprice that. july is the next possible option. we are running out of time if this is going to happen. haidi: good news when it comes to china data, not coming through when it comes to the yuan. let's get you straight to the open. a bit of optimism there. 8/10 of 1% lower there despite

the benefit of the weakness in the end continuing to benefit exporters. some of the broad-based risk aversion plaguing through for this market that has seen such a significant rally. dollar yen holding that 152 level. expectations of intervention at about that 152 level. the likes of bfa seeing dollar yen headed towards 160, if the fed meaningfully delays those cuts. we are watching how jgb's is faring as well. the divergence play continues to have the biggest impact when it comes to trading in japanese assets. flipping the board to see how we are headed with korean equities. we had those conversations between president biden and president xi talking about security, about tiktok as well. we will see how that plays out when it comes to tech names. the ev names in focus after that bigness from tesla overnight. on the other end of the

spectrum, solid numbers out of a number of the chinese ev makers including the likes of bui d. we are also seeing that play from avian on the u.s. side, doing well as well. the cost be seeing similar weakness that we have been mirroring across the board. the only spot of upside energy that we see is actually across oil and energy related names, given that we see crude still holding up in commodities. paul: that's being reflected in australia. we've been trading for over an hour now. it's a risk off day for the sx. off by two thirds at 1% at the moment. as you say, the bright spot is energy. that sector better by a tenths of 1% right now. we are starting to see trade in brent truth continuing to show strength. of course, tensions in the middle east helping to support the price there. opec plus meeting today where we are expected to see the policy on output curbs get reformed.

let's take a look at what's going on in the treasury space as well. u.s. tech in japan. yields on longer dated notes starting to climb. that trend continuing as well let the moment. 4.35 on the u.s. 10 year the moment. j.p. morgan had a client survey out on this. seeing short positions in u.s. treasuries rising the most since the start of the year as markets continue to reprice that fed action. let's have a little bit of a listen about what the fed is saying. >> i think that's a very reasonable baseline. i would like to say here, this is a projection. three rate cuts is a projection. a projection is not a promise. haidi: our next guest says central bank policy action has brought positive sentiment. how long will that last?

we saw that fade pretty quickly. short of being a straight line trajectory, do you see more of the risk of a dissent from the valuation levels that we are at? >> the markets may pullback. that's to be expected after such a strong run. does that change the narrative in terms of what the outlooks on markets are going to be for the rest of 2024? i don't think so. for what the fed has said in its march meeting, it looks like there will be rate cuts this year. if not three, maybe two. even one. you have to take a longer-term view. 20 tony 4, 2020 5, 2026. historically when the fed undertakes a series of multi-your rate cuts, that tends to be positive for equity markets and bar markets. as i said, it's not going to be

a straight line assent. after the market has done so well in the last few months. i think taking a breather is normal. what we are seeing now is the markets taking a breather. i doubt it will fall off a cliff. there's a huge amount of liquidity. if we see a significant pullback. haidi: does that mean you see better opportunities outside of the u.s.? >> i think both in the u.s. and outside the u.s.. in the u.s., the magnificent seven has done a stream really well. we still like the sector. we think it's a clerestory. ai is at the cusp of a long-term trend. it's going to spend the next five to 10 years. again, it's going to be a bumpy ride. one has to be positioned in the sector. beyond that, you are starting to see the gains in the u.s. stock market filter across to a

broader segment of the market. tech has taken the lead. non-tech stocks could still play catch up. beyond that, we are excited about what's happening outside the u.s.. one market that we like is japan. we also see opportunities in parts of asia and europe. we encourage our clients to take a more diversified approach to investing because we think it doesn't make stance -- since to take bets at this juncture. even as we remain positive on the medium-term outlook. paul: so you talk about the fed playing along game. you talk about some of these longer-term plays like ai. but we are seeing very high valuations here for some of those stocks. high valuations for the nikkei as well. do you think, that's an entry point? >> the valuations are not as attractive as they were six months ago.

no doubt. for ai stocks, they trade at high valuations. when ai kicks in, earnings will be significant. it's a high group of stocks. in this case of japan, valuations have gone up but they are not excessive at this juncture. we think the story behind japan is more than just about valuations or short-term earnings. it's more structural in nature. you see government reforms taking place. share buybacks, dividend payouts , lots's changes as far as governments are concerned. japanese households are cash-rich. the japanese government has tweaked the program which allows households with more money to pour into the japanese stock market. the stock market is underground entrance of foreign participation. long-term, we think there's more upside to japan. despite what may seem like

relatively high valuations in the short term. paul: also on the theme of getting long, when you look at china and how undervalued some of their assets are there, does that look appealing to you? what sort of opportunities are you looking at in china? >> with china, one has to be a bit more guarded. we are not negative. we have a positive march on china. we are hoping to see more positive stimulus coming out of the chinese government that will excite investors to get into the market. the chinese stock market has rebounded since early january pigot msci china is up close to 13%. but still, the markets are down more than 50% from the peak in 2021. valuations are very low. single-digit. where we see opportunities in china would be the infrastructure space. the government is going to boost infrastructure spending. they want to develop the economy.

also boost domestic consumption and reduce reliance on the outside world, on exports. especially companies in the asian market. it could be quite positive for the long-term. paul: all right. thanks for joining us. i want to get you across an alert on the bloomberg at the moment. we are getting word of an earthquake near taiwan. it's quite a big one. magnitude 7.4. we don't have any more detail on its location or its depth at the moment. there's an earthquake and tsunami warning. japan warning that the earthquake jet -- depth was very shallow. the magnitude of the quake, 7.4. haidi: coming up, more analysis when it comes to tesla's first order deliveries. we will be getting some commentary, hearing why they are

calling those results in unmitigated disaster. first, they did discuss -- this is bloomberg. ♪ billy's not just running a small goat grazing business

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>> the teams have been working a lot since november on fentanyl precursors, on climate change, on economic practices. on artificial intelligence. so there's been a lot of staff level work and both presidents thought that now, this was a good time to check in with one another and see how that's going, discuss the future. haidi: speaking about the phone call that took place between presidents joe biden and xi. let's get more details. so what jumped out to you from these talks, other than the fact that it's encouraging that they happened at all? jill: yeah. this is par for the course in terms of what biden and xi promised when they met up in

california in november. they said they would establish a more regular line of communication in the wake of that big spy balloon incident. talks on ice for the better part of a year. the fact that they are in regular communication is really important. i'm not seeing a ton that's moving the needle on the fentanyl discussions. those are continuing to be ongoing. military talks. what stood out to me was tiktok. washington says they discussed it. there's this ban that's been working its way through congress. still has a murky fate in the senate. biden has said he would sign a bill saying that tiktok has to divest itself from its chinese owners if it lands on his desk. the fact that it came up in these conversations was quite interesting, indicating that there's a line of tension on data security, data privacy that the u.s. has on china. paul: so we've got janet yellen

heading back to china this week. is that going to move the needle on any of the issues? jill: we will see. what janet yellen is really concerned about is industrial overcapacity in china. this idea that by providing subsidies to its companies, the chinese government is contributing to an unfair economic advantage that a lot of chinese companies have the world over. janet yellen has made appearances at companies in the u.s.. a solar panel company in georgia. they had to shut down because of imports from china being so cheap. i bet that's going to be her major point of contention as she heads to china this week. i think that would be interesting. she's obviously made a previous visit to china. i'm not sure how much that will move the needle on those discussions. the fact that it is ramping up as another point of contention that the u.s. has on china. haidi: our news desk editor

there. some of the other stories we are tracking when it comes to these major economies. china has dethroned the u.s. to become the top alignment choice for southeast asians. the survey of under 2000 people by singapore's -- institutes out china's popularity climbing to over 50%. waning confident in the u.s. could be attributed in part to anxiety over washington's strategic and political influence. the u.s. is said to be asking south korea to adopt restrictions on chip technology exports, in-line line with washington's controls. officials want to tighten the flow of technology to make high-end memory chips china. the u.s. reported the topic in-depth with korea's president in march. they are still debating the request as china is a key trading partner. paul: let's take a look at some of the movers in the asia-pacific at the moment. what you are seeing is a few

tech stocks. some of these will be influenced by what's going on with tesla. low expectations for tesla's deliveries for the first three months. 300 86,810 vehicles got delivered. that managed to sync even below those low expectations. some of the stocks that particularly are exposed to tesla suffering a bit in the early going at the moment. tokyo electric power doing pretty well right now. 1.3%. let's talk more about tesla's first quarter delivery miss from linda lou. analysts already slashed protections. tesla managed assisting -- to sink below that generous bar. what happened? linda: yeah. going into the first quarter, analysts already painted quite a low expectation. but tesla managed to meet --

even miss that. the picture is quite ugly. tesla basically missed analyst estimates by the largest margin in seven years. it actually managed to decrease sales compared to last year. that's going to take a hit to the narrative that tesla is a growth company. essentially, tesla has been warning the market that with high interest rates, the demand for vehicle purchases are going to be impacted. and their production has been affected by all of the disruptions in the red sea as well as china. their second largest market is going through this fierce competition where tesla's market share is also falling. all of these factors are painting a very bleak picture for tesla right now. haidi: and it is just tesla at this point. as you mentioned, we've seen a lot of action from chinese ev makers. b y d, the numbers are pretty strong.

linda: yes. interestingly, they've managed to grow their sales by a lot. just in march, they've reported sales growth of over 40%. so that's a very healthy outlook. but the thing to note is that, tesla still delivered 386,000 vehicles. that compares to be mighty -- 300,000 ev's. they lost the crown again of the world's largest ev producer back to tesla. overall including plug-in hybrids, they -- in the first quarter. paul: it was a horrible first quarter for deliveries for tesla. we have seen this before. they have recovered. how does the outlook for the rest of the year look? linda: yes.

hopefully for the rest of the year, tesla can pick up their production again. hoping that demand will also resume. depending on how the interest rate will go. a lot really depends on the global demand for ev's which is actually slowing. so that's not just for tesla. for other ev players, all of these players from china, they are going to face similar challenges. a big question is, how well is demand going to stack up for the rest of the year? haidi: our asia transport reporter there with the latest on tesla. we will be getting more insights when it comes to those first quarter deliveries. big ms. from tesla. why they are keeping and outperforming rating on the ev giant despite those results. more to come on daybreak asia. this is bloomberg. ♪

paul: just want to bring you an update on the earthquake in taiwan. 7.5 magnitude earthquake. happened 21 kilometers southeast of taiwan. this is according to the u.s. geological survey. very strong shaking at that strength. that was felt widely in the taiwanese capital. a tsunami warning has also been issued for a number of those small japanese islands that you see there just to the northeast of taiwan. also a tsunami warning for japan's okinawa prefecture. local residents told to evacuate. tsunami waves as high as three meters being forecast. sounds like quite a serious magnitude.

7.5 quake and tsunami warning for those southern japanese islands. haidi: we will be be -- keeping a close watch on that. president biden saying israel is not doing enough to protect civilians in gaza after the israeli military killed seven eight workers including an american in airstrikes. we are seeing reaction from australia's government as well, it's eight workers part of that death toll. does this mark an escalation of tone from the u.s.? >> i think that's exactly right. you have a feeling of an inflection point here. there's been so many civilian deaths. australia's foreign minister pointed -- pointed out that the number of aid workers who has been killed is really high. 196 since the conflict began. so it's the language, the outrage that the u.s., u.k., and australia have expressed, all of

whom lost citizens in this accident. it was a strike but it was obviously accidental. it almost feels like there's a sense of recklessness about how israel has now conducted the war. so yeah. it feels like we've hit a point. it's sad to say but sometimes it takes western citizens for people to really snap to on what's going on here. it's dyer in gaza. famine. paul: israel has been resolute in its stated determination to wipe out hamas. the heightened whether rick -- rhetoric non-withstanding, why would they walk away from it now? michael: that's the point. it's almost like that yahoo! takes some benefit from staring down on this. they obviously get a lot of money and weapons from the u.s..

they also generate political support from the nationalists who are part of his coalition in doing this. across israel, the general feeling is that they have to prosecute the war the end. i don't think this is a split between the u.s. and israel. it's more the netanyahu administration. you suspect israel will keep pushing on. haidi: $18.5 billion in the destruction of infrastructure. a years worth of economic output. we know the assessment of 30,000 palestinians being killed. i think to the -- paul's point, we see this rising tide of international condemnation from australia, the u.s., the u.k. there seems to be consensus that what is happening now is not acceptable. do we see a way it changes? michael: it's difficult.

these are three close friends of israel. the u.s. is the staunchest ally. that pressure is building. it depends. the next step is, does the usa, we are not going to supply you weapons? we definitely have a step up in rhetoric here. haidi: let's take a look at how european futures are shaping up at the moment. it's a pretty muted session as we see across asia at the moment. not a lot of movement when it comes to the euro stocks 50. pretty flat at the moment. we did see that previous session seeing a slide as well. negativity tracking the sharp drop that we've seen in wall street. traders globally just reassessing the path of interest rates there. we are seeing the ftse 100 after some recent closing records paring back some of that enthusiasm. compared to most other european

markets, that is still the upper there. we will expect to see the further strength across energy. we saw the likes of shell, bp outperforming. those gains are still being head -- held in the price today. asian crude and energy names as well outperforming broader weakness in the market. still to come, we are watching some of those tesla suppliers. wedbush securities holding a rating on tesla despite what they call a train wreck first quarter. we will be asking the managing director why he is optimistic on that stock. this is bloomberg. ♪

haidi: risk off sentiment taking hold in the asian session.

downside there for the neck a 225. up by 1%. weakness being sustained in the yen at past that 151 level. not helping out too much despite the benefit to those trade related names. the cost be down by over 1%. we are watching the impact when it comes to tesla supplies in particular. we will be getting more on that story and just a moment. the ev names, trying to weigh up the big differences that we see in those tesla numbers and the numbers which were much brighter for a lot of the chinese ev makers. taking a look at what we were watching and australia and new zealand. broad downside. in australia, commodity names outperforming. some commodities have been rallying on the expectation that we will be seeing elevated rates for longer. particularly for the fed and potentially for the r.b.i. as well. oil performing for another day.

that is being expressed through some of those utility names. some of the few gainers that we see in the sydney session. some data crossing the bluebird as well. march composite pmi coming through at 51.7. services at 54.1. paul: a rising tide lifts all boats. we are seeing the opposite when it comes to tesla related stocks area very disappointing deliveries for the first three months. tesla related names there. the company itself was off by almost 7% at one stage. shares were down, settling lower by 4.9%. it dragged ev stocks lower. now it's dry -- dragging tesla suppliers lower as well. 386,810 deliveries. the market was expecting between 400 and 420,000. even that was a reduced estimate. so tesla massively under suiting expectations there. the biggest sales mess ever.

our next guest says while he remains bullish on tesla's long-term story, this was a train wreck into a brick wall. let's bring in dan ives, senior equity analyst pigot tell us what you think. what is the strategy for test like -- tesla going forward now? how is this going to pan out? >> look, that's been the problem. it's been an epic disaster. not just in terms of delivery number about the strategy. are you going to cut prices or margins? investors are feeling blindfolded. they are playing darts blindfolded. no one was expecting a good quarter. this was a friday the 13th nightmare. that's what this was. paul: ok. elon musk warned us that this was going to happen. he was talking up supply challenges and said previously

that tesla is in between two major growth waves. how long do you see this trough being? what is the next wave? is it the low-cost model two? dan: it's a little dog ate the homework. the supply is not the issue here. it's really demand soft. for tesla, this is a fork in the road really. in terms of what they will do from a price perspective, new models over the next few years, advertising. competition is increasing. demand softened. not just in china but globally. this is probably one of the more challenging times in the last four to five years. now you need to be a pilot on the plane, navigate tesla. right now, it's a category five storm. haidi: are you constructive when it comes to the stock? dan: yeah.

we are bullish for the long-term. on the other if this. i've been vocal for many years. you gotta call it like you see it. they need to get through this time to see the growth, to see the margins, to see the potential. otherwise, there could be darker days ahead. i view this as really a key chapter for musk in terms of which way he navigates. patience is wearing thin. this is one of the more frustrating times we've seen for investors in years. haidi: in losing momentum in china, particularly at a time when competition is so fierce and discounting is so aggressive, does that risk the long-term outlook in a major market? dan: china is the hearts and lungs of the tesla story. what was a cinderella ride has now turned into a horror show.

relative to growth. that could be reversed. clearly we are starting to see prices increase. maybe the worst is in the rearview mirror. they had a good call last quarter. if you go back, for tesla, this is going to be a defining time. i believe they could reverse the growth trend they are seeing. it comes down to musk. you need an adult in the room. the board is going to have to take some action here. this is something you can just -- you can't just brush it under the bed and say there's a surprise. paul: in terms of the board taking action, how effective do you think that would be? could you see elon musk as a powerful personality? could you see a battle shaping up here? dan: i think he needs to commit to being ceo for the next three to five years.

in terms of artificial intelligence, making sure that stays under tesla. it's really coming out with a strategy. showing the roadmap. showing what for self-driving is. showing the monetization strategy. investors can't just believe. they need to execute. this has been a phenomenal story for the past decade. but you know, we are going to look back years from now and the future of tesla will be how they've navigated this time. i'm optimistic. musk needs to be an adult going to this conference call coming up in a few weeks. haidi: the question of elon musk's leadership. do you think he is distracted by his various other projects? he has so much on the go, not to mention next -- mention x.

dan: i mean the minute he bought twitter, this was almost our worst fear. it is starting to come true. almost like watching a slow moving car crash. in terms of the distractions. obviously some of the political variables. alienating some potential customers. it's had an impact. i think for musk, he needs to choose which way this is ultimately going to head. because you can't really look at excuses and blame. there are tesla issues here that i think are musk created. haidi: always great to chat with you. claims of chinese overcapacity

when it comes to ev's and batteries are a key gripe for western nations. janet yellen headed to china this week, accusing beijing of distorting global markets. we've heard similar concerns from the eu as well. those claims, are they backed up by the data? we are talking about autos and ev's. we know that china's exports surged last year. overtook japan in terms of the top global exporter. you take a look at the story and it wasn't because chinese cars are cheaper. >> it depends what kind of cars you are talking about. chinese ev's cell for twice the price in europe than they do in china. a lot of those chinese ev's are tesla's or bmw x three. it doesn't seem to be a lot of overcapacity in the market. partly because the chinese market is growing rapidly. the companies are trying to ramp up production as quick as they can. partly because what little

access capacity there is is being exported but it's not being exported cheaply. internal combustion effort -- engine cars, it's a different story. you are seeing a lot of overcapacity as older plants, as the carmaker shifts to ev's. you are seeing a lot of overcapacity in older plants. so there's massive overcapacity in those cars. they are being exported but a lot is going to russia. that's because all of the other foreign car companies have left russia since the invasion of ukraine. there is some overcapacity. some of it is being exported. it really isn't the massive wall -- war of ev's that so many people are concerned about. paul: some of the other areas of

overcapacity or low tech sectors as well. to what degree are they linked to what's been going on in china's property market? paul: there is definitely overcapacity. you are definitely seeing that in the cement sector. if your housing sector is shrunken by half or third depending on construction, obviously demand for cement and iron nor and rebar and windowpanes is going to slump. there isn't a lot of exporting of cement though. it's not an exportable good. you can't even ship it more than a couple of hundred kilometers. there's massive overcapacity in those sectors. you are seeing that in industrial production data. you are seeing it in soa product data. the first couple months of the year, the lowest it's been for 10 years except for 2020 when there was the initial covid outbreak. there's been a massive process -- profit and revenue slump.

in some sectors, you are seeing overcapacity. the biggest secto where you will see overcapacity in china is going to be batteries. it's going to be in solar panels. china has huge overcapacity in solar panel production. it seems to have huge overcapacity and battery construction and manufacturing. whether that's cards -- cars or electrical power storage. there is concern that that's going to be exported. at this point, china produces almost 90% of the worlds solar panels. there isn't a lot of competition that they are driving out of business at this point. they already drove the competition out of business over the past 10 years. if there is overcapacity in solar panels, that's going to drive down prices for consumers overseas and also it's destroying the revenue of chinese solar companies. there is overcapacity. the biggest loser from that is

going to be companies that are making solar panels at a loss in china area -- in china. paul: still to come, the latest moves in the oil markets after u.s. crude pierced a five dollars. the first time since october. more on the output, next. this is bloomberg. ♪ you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible,

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paul: the yuan is a whisker away from its onshore trading band. recent upbeat economic data fails to bolster the chinese kind let's bring in david finnerty. how much of a concern is this for policymakers in china? can they realistically do anything to prop up the you want? >> i think there is certainly concern. you never like to see a trading near one and of the band. that's happening right now. it indicates how much leeway they are giving it to weaken. certainly overall they will be happy with it. there's one end of the bands that may force them to intervene to prop it up.

just making it very hard to short the yuan, they are looking at forward points for that. it just means it's work for the central bank. the markets will be interested to see if other counties are weakening versus the dollar. does the ppo see say, let's yuan -- let's let yuan stand its ground. haidi: the same thing could be said for japanese policymakers and zi yan. it is hovering at the 151 level. is there still expectation of intervention? how impactful would that be? >> at the moment, we are certainly in intervention range. there's been a lot of rhetoric out recently. suzuki was talking about excessive moves. over the last week or so, the yen has hardly moved. it's been stuck at the 151 to 152 range.

they've been very preemptive. the market has its eyes glued on this 152 level. if it hits that, it's back to its lowest since 1990. even more portly, in the option world, a lot of risk reverse knockout barriers get triggered. that means some option players will find themselves short dollar yen and they need to cover those positions. they may see a rush of buying to cover their positions. those knockout barriers are quite large apparently. they could see dollar yen jump higher which ironically could spur the intervention. everyone is focused on the 152 because everyone knows about these option barriers and they know they could be a trigger for the yen to find -- finally intervene, even if it only crosses that 152 barrier. paul: david finnerty there. you are watching daybreak asia. let's take a look at the latest geopolitical development's are watching. president biden says israel is

-- hasn't done enough to protect civilians in gaza after airstrikes killed seven aid workers. the israeli prime minister admitted what he called an unintended strike on innocent people. it prompted several charities to suspend food deliveries to palestinians who the u.n. says are on the brink of starvation. iran's supreme leader has promised to take revenge on israel. state media quoted the ayatollah as saying israel is going to regret its crime. israel hasn't confirmed that it was behind the strike of damascus which tehran said destroyed its consulate building and killed at least 13 people including seven iranian military personnel. nato set to be proposing a fund of allied contributions for ukraine with $100 billion over five years. sources say is part of a package

alliance that leaders would need to sign off on when they gather in washington in july. the proposal could see nato take charge of weapons deliveries to ukraine over european concern that a second trump presidency could change u.s. policy. haidi: look at how we are trading. the extension of the oil rally after we saw a report pointing to that drawdown in u.s. crude inventories. this comes ahead of an opec plus meeting. that group expected to affirm the current level of supply cuts. we are rising rapidly towards $90 per barrel when it comes to the benchmark brent at the moment. crude trading at over $85 as well. options traders are increasingly looking to protect against the prospect of a further increase in crude prices, particularly in light of escalating middle east tensions as well. let's get some more analysis.

what's the expectation in terms of how much further upside could be seen in oil prices? >> yeah. hi. so i would say for oil, there's two aspects which i'm looking at right now. on the fundamental side, things are looking supportive. you have expectations of fed rate cuts in china. the outlook is downbeat. you've had the latest manufacturing data which showed an expansion. europe as well. analysts flagging activity in the manufacturing. so you've all these broader economic factors which are more supportive. then you have more incidental things like an outage from mexico's oil production. so that's going to tighten the market as well. broadly speaking, it's all looking very supportive. we are looking out for brent at $90 next. on the other hand, i would flag that on the speculative side, there's a sense that what has

push prices higher, they've begun to reach the max length. there's a bit of a sense that the rally could fizzle out from now. maybe if we see brent hit $90, that will spur more alco buying. what i'm trying to say is that is bullish. we will see where the market goes from here. paul: we've got an opec plus meeting later on today. they are expected to rubberstamp and extension of production curves. is there anything else that you are listening for out of this meeting? >> the opec plus meeting later today. the committee meeting which they are inspect -- expecting to rubberstamp to continue their cuts. what's been interesting so far is that we've seen coverage on how some of the countries have been slowly stalling in terms of their agreed-upon output cuts.

we have our team in london saying that russian output is on the rise. on the one hand, yes. opec plus is keeping their production steady. that's a compliance, the one thing that we will watch out for. haidi: let's get the uptake when it comes to the monitoring of the earthquake at the moment. live view of okinawa after a strong quake hit taiwan. we are seeing that tsunami warning being issued for japan's okinawa after that magnitude 7.5 quake. we are also seeing the tsunami warning issued across what we are seeing in terms of the impact on taiwan as well. the capital of taiwan having a

tsunami warning issued there. tsmc one of the companies that's evacuated some of its staff from production lines. that's a numbing has been issued after we had warnings being -- buildings being shaken in taipei. aftershocks have been felt across taiwan as well as unofficial reports of buildings having collapsed or been severely damaged. you can track all of that on the bloomberg. more ahead here on daybreak asia. this is bloomberg. ♪

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when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card. make more of what's yours. paul: we are keeping an eye on this breaking story out of taiwan. you are seeing some pictures there starting to come in now with the intensity of the shaking. depending on who is measuring it, u.s. geological survey says 7.4 magnitude earthquake. this was 23 kilometers north northeast of the city in taiwan. strong shaking there. tsunami warnings as well for some japanese islands. haidi: we will be watching that as development come to us. we've seen some reaction from the likes of tsmc, some

disruption to businesses as we've seen. the of actuation of some staff from production lines at tsmc. we've also seen that tsunami warning being issued after we saw buildings being shaken in taipei, the capital of taiwan, just after 8:00 local time this morning. waves reaching one to three meters above the tied level along china and the coast of taiwan according to the pacific tsunami warning center. we will be continuing to watch in terms of what else we are seeing. the taiwan quake is the strongest we've seen in 25 years according to the seismology official. ♪

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