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00:00Paul The thing we can't ignore, of course, is the NVIDIA earnings. I say that, but the authorized way wasn't huge. Nasdaq futures actually paring earlier losses as we get closer to the European Open here. So how do you put the Nvidia story in context for us? Yeah. Good morning, I think. Yeah, it's a really interesting question and a way to look at it is the idea that Asia's monkeys really didn't respond all that much. And it's also what we saw with the video. Remember, we built this as a really big risk event. Implied volatility was suggesting there could be really major swings either way based on what the earnings showed. And indeed, it did drop quite a long way around 3% in after hours trading in the US. But the knock on impact for broader markets doesn't seem to have been all that great. I think there's a couple of things to think about. One, the earnings really weren't all that bad. There's some uncertainties in there and that's part of the world will make them look a little bit weaker. The fact that they excluded China from their altogether and to even then the size of their earnings is still pretty phenomenal. All else being considered. I think that Asia's markets had an extra fillip because it is a bit worried about what it can do in China That is opening space for the Chinese technology companies to also come in. And so they had another good day. But all in all, the market was happy enough with that and focusing on other things. Other things What's happening in Japanese bonds for. Yeah. So we we know the Japanese bonds have been under pressure, basically the long end of the yield curve for some time. People worried about inflation risk. Today it was the front end of the yield curve, an auction of two year notes that really didn't go very well, the weakest demand in 16 years. So and you're looking at the bid cover ratio. And I think that that tells you a couple of things. One, just in general, appetite for JGBs is very weak and subdued at the moment. And two, people are getting ready for the central bank to raise interest rates. One of the BOJ members was talking today, sounded a little bit more hawkish than the market might have expected. So we're getting ready for the big two hike. Remember, the rest of the world obviously going in a different direction at the moment. But if that's going to happen, you're going to want higher yields in order to own these bonds. And so the risk now is that that ricochets again back across to the far ends of the yield curve. We've been talking to international investors who thought that that would be a good option given the extra pickup they could get with currency hedges as well. But they keep getting thwarted and all of that, all of the profits from that trade are getting wiped out because the yields keep on going higher as well. So it's troubling times there for the JGB market. Paul will continue the story in Asia, specifically, walk us through the Indian market here. We now have 50% tariffs on India. We have concerns and threats of secondary sanctions, not just from the states, but from Europe now as well. What is the thinking? Yeah, we don't talk a lot about India and this law, but I think a good moment to do it given the fact that we're getting hit by those extra tariffs on India right now. But what we've been worried about is being the weakness in the bond market again, over there as well. We have state states looking to fund the government as well. So that's putting a lot of stress on demand out. So today we reported that the central bank was paying attention to it, and that seems to have stopped the sell off just for now. All right, Paul Dobson, Bloomberg editor for Asia. Marcus, walking us through some of those dynamics. We thank you so much. Get more analysis from him in the team. ML Ivy, go is the function on your terminals.

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Markets in 3 Minutes: Nvidia News Really Wasn't All That Bad

Paul Dobson, Anna Edwards, Guy Johnson and Kriti Gupta break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." (Source: Bloomberg)

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