00:00Paul, I wonder what you take away from this week in terms of the backdrop for risk assets,
00:04because Walsh was a little more dovish than expected. The payrolls number was weaker
00:08than expected, and we pushed out expectations for a Fed rate hike.
00:14Yeah, so if you're Kevin Walsh, I think you're very happy with the way that things are going on
00:17this morning. You know, he came into the Fed as chairman setting out a stall that they wanted to
00:23bring down inflation. The market got a little bit worried that they were going to raise interest
00:26rates, but it did bring down the inflation expectations. It brought down yields at the back
00:30end of the yield curve. Now what we're seeing is this idea that with a softer jobs data and with
00:36inflation cooling because of the oil prices dropping again, the market is pricing out the need for the
00:41Fed to act with any urgency in terms of raising interest rates. I think for this month, we're now
00:45just priced at a 20% chance that the Fed will move. So that's kind of cooling down markets, and
00:52it's
00:52one of those moments where reducing the bets on Fed hiking is being taken as a sort of risk on
00:58signal
00:59for the rest of the markets. We've got a weak dollar, got a stronger Asia FX, stronger commodities
01:03FX, and equities market is having a better time of it as well. Paul, how are those factors tying into
01:09the Asian equity session today? Yeah, so I think people are taking it as a genuine positive.
01:17And so particularly if you look at the yen, which have been under quite a lot of pressure, as we
01:20know,
01:20all of a sudden, we've got the dollar softening a little bit. It's allowing the yen to rally.
01:25Likewise, some of the other Asian currencies that have been under pressure like the one.
01:29And then there were tech has been all over the shop this week in Asia, but it's ending the week
01:34on a pretty positive note in South Korea in particular. We've got rally going on. We've got
01:39a talk of a deal between Anthropic and Samsung that's helping things as well. SK Hynix had its worst day
01:45yesterday since November 2008 is back up more than 10 percent today. So the market is certainly
01:50ending the week on a more positive vibe than it's had at various points during the last five days
01:55of trading. And Paul, help us deep dive into what's going on in South Korea, because this is
02:00really interesting. The stock market has been something of a global story for a long time,
02:04but it's not taken the currency with it. The one has weakened, partly due to people not wanting
02:09too much exposure, I think, to South Korea overall. Now we're about to see a period where
02:14we get 24 hour trading in the one. And we're also going to see SK Hynix go to the US
02:19to try and
02:20raise some money. So talk us through the dynamics, how this is all playing out.
02:26Yeah, there's a lot to unpack there, isn't there, Anna? So the big picture is that we're going to
02:30begin 24 hour trading from Monday. It's a big deal for Korea because over the history of time in the
02:36FX market, it got very badly burned and scarred by the Asia FX crisis, which meant that it kept
02:40trading under very close wraps for quite a long period of time. Now it's opening up because its
02:45markets are maturing. And also it wants to win this developed market status. And in order to do that,
02:50having around the clock FX trading is a big part of it. Talking about valuations and levels. Yes,
02:55I think that you're right. International money has been coming out of South Korea just because the rally in
02:58the equities market has been so gigantic that people have been hitting the limits on how much they're able to
03:03hold. So they've had to take some money out. It doesn't reduce the sort of overall size of their
03:06holdings, but it does free up some cash for them. Boosting the one today, we've got news that maybe
03:13some funds are coming back from the SK Hynix fundraise in the US. So a bit of a rally for
03:17the end of the week.
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