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tv   Bloomberg Daybreak Australia  Bloomberg  May 15, 2022 6:00pm-7:00pm EDT

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haidi: welcome to daybreak australia. we are counting down to asia's major market open. shery: good evening from new york. the top stories, goldman sachs warns the u.s. faces a very high risk of a recession. as the bank slashes its growth forecast for the country. haidi: china's central bank looks to counter a collapse in home sales and boost the economy. shery: nato prepares to add finland and sweden to the alliance, marking another dramatic shift in europe's security architecture furthered by russia's war in ukraine. we're seeing u.s. features gaining a little bit of ground at the open in the is in session after the s&p 500 so i strong rally friday. nasdaq 100 really outperforming other benchmark indices. the 10 year yield topping 2.9%. crude prices gained ground for a
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third consecutive session. we are seeing the extension of gains in the asian session. seeing the squeeze on refined products not to mention the russell diesel exports continuing to fall. but we are following the broader developments about this risk-off sentiment we have seen with anxiety in the markets. we are talking about u.s. stocks rallying friday but after a chaotic week. we are talking six weeks of losses for the s&p 500, already the longest losing streak since 2011. the s&p 500 down from his january peak around 17%. very close to a bear market. we have seen, what, around 26 bears markets since 1928 or so. and what has happened since his we have seen average returns on the auditive especially after one month, 13% upside for the s&p 500. same thing a year later we are talking and upside of 29%. are we getting there is a key question given the anxiety and
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markets. u.s. stocks wiping out about $10 trillion of market value in the past 18 weeks. the vix has still remained around that 30 level, and for past bar markets, it is usually topped 45, so we are watching where we are headed with u.s. stocks right now. haidi: it does seem like volatility is here to stay, even as we see the short-term recovery across markets. we did see the recovery play out when it comes to the asian session, avoiding the sixth straight week, but this is still the worst losing streak since 2015. more positive headlines, easing restrictions and shanghai, some moves from the pboc. going into today's session we will we watching what is expected to be pretty ugly domestic activity numbers out of china. this is how the futures of a shaping up in sydney. indicated upside about .6% once the cash session starts treading on the back of the broad rally we saw on the u.s. friday.
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we are five days out from the federal election as well, so political risks are starting to inch up as a priority this week. the aussie dollar still under $.70 u.s., not much trading date at the moment. it did pay the weekly decline to just over 3% for last week. in new zealand, stocks up about .3%. the dollar also losing about 2.8% for a seventh weekly decline, its longest losing streak since 2015. the euro, we have more and more analysts: for potentially dollar euro parity in 2022. the likes of hsbc putting their weight behind that call. it is about not just the divergence that we see, the were in ukraine, the risks there and the downside when it comes to the economic outlook, but we really have seen the pressure when it comes to the common currency. and it leaves the ecb in a
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really tricky situation. shery: we are talking $11 trillion wiped out from global stock markets right now. the longest losing streak since the global financial crisis in 2008. and some people pointing to perhaps valuations getting lower, perhaps this is an opportunity. we have seen the world index dramatically lower valuations on those companies trading, especially in the u.s. and europe, with the challenges there. but you continue to see these concerns, whether from morgan stanley or citigroup, that we could fall further given the high inflation, hawkish central banks, growth concerns, and of course we have u.s. key technicals pointing to perhaps more downside at this point. haidi: and that rout in the stock markets is now starting to lead a few great -- wading back into the bond market.
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most have been crushed this year but we are seeing treasuries look a bit more appealing after the historic rout. we have seen the selloff in the equity space juice the u.s. debt. citi seeing a peak as well. as we see the market sentiment shift over the past week from inflation fears now to growth, we're seeing some of this play out in a comes to potentially a bit more of an argument that yields may have started to peak. it is a pretty brave call, but you are starting to see that start to turn around a little. lots of investors saying they are buying more treasuries. you are seeing that when it comes to australian and new zealand bonds with those yields falling. shery: no wonder we are hearing from the likes of very high profile investors and goldman sachs, saying that he's the latest to warn of a u.s. recession. for more analysis let's bring in our cross assets asia editor andreea papuc and stephen engle.
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we are talking about all these potential directions stocks and bond markets could go from here. some pointing to perhaps lower valuations. the by the dip mentality. what is the outlook right now for the next few weeks? andreea: look, there are a lot of crosscurrents in the market and there is no doubt that valuations have dropped with that $11 trillion being wiped out global equities. it is definitely too early to say that we are out of the woods and volatility is perhaps the one certainty we can look forward to for the next few weeks. but as you mentioned, investors are starting to look at bonds as perhaps a hedge against a potential slowdown. no one is saying those yields have peaked yet but they are looking at bonds as having a place in portfolios as this
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aggressive fed tightening may engineer a slowdown, a potential recession that investors are looking at. as you said, we had lloyd blank, you mentioned that. haidi: china, a major catalyst on markets of course. those domestic activity numbers are expected to be pretty bad. we saw support though for the property market. stephen: we did. the numbers are going to be pretty bad. april activity has ground to a halt because such a large swath of the economy is under some form of lockdown. particularly in and around shanghai, and beijing has restrictions. so we did get some move over the weekend with the pboc opening up the first salvo of policy ahead of a big data dump later today. pboc cutting its lower bound range of mortgage interest rates by 20 basis points. easing those rates for first-time homebuyers to support
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the home market which has been battered by the lockdowns and slowdown of activity because of the omicron and resulting lockdowns. but also if you go back months because of all the property woes . so, property has an absolutely battered and has been a drag, obviously, on economic activity. so the pboc will also be watching later this morning at 9:20, the mlf, and we're expecting some easing, relaxation, a modest reduction according to many economists. but later today we are going to get that data dump, and it will be probably ugly because it will be retail sales, industrial production, fixed asset, urban investment, and property investment year to date. i want to break them down quickly. retail sales will be off the cliff. the estimate for april is down 6.6%. it was down 3.5% in march.
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property investment is a year to date figure, it will not be pretty as well, down 1.5% is the estimate after a 7% growth. so that really shows, because it is a year to date accumulation, really dropping off in april. fixed asset urban investment expected to grow 7%. that is probably the best number because there will be infrastructure stimulus. the last number i will mention, industrial production, likely eked out a gain of 0.5%, but it is teetering. it has had one contraction, monthly number, one contraction in data going back to 2002, and that of course was march of 2020. shery: plenty of eco data to watch. for a while we were thinking perhaps chinese assets could be a haven because we saw some stability there. not anymore. we saw a huge selloff. what are investors thinking now? andreea: look, this is a bit of a contrarian bid, but some
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investors are looking at chinese investors along with some of the other assets like high dividends and bank stocks. and what they are saying is, look, china may be ripe for a rebound if we are starting to see lockdowns lifted in shanghai and beijing. also, valuations are really cheap. the csi 300 is mired in a bear market. can you have those promises of some stimulus, as we have just heard. last week the market there was up 2%. it outperformed global peers. of course that is notwithstanding the uncertainties from the ongoing lockdowns for the data steve mentioned will probably be pretty ugly. but yeah, look, investors are starting to nibble at the chinese stock market. haidi: andreea papuc and stephen engle there. nato has welcomed finland's
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historic decision to seek entry, with germany saying the country and its neighbor sweden are already quote, defect a members. -- de facto members. so this is a historic move. tony: absolutely. and one way to work -- look at it is specifically finland joining, it would significantly extend nato's border with russia , which of course if you like league all matter of why we are at this point between russia and nato in the first place, finland's parliament is expected to approve a formal decision soon and also on sunday, sweden's governing party, the social democrats, dropped their opposition. so this all clears the way for this to happen and u.s. secretary of state antony blinken said he is very confident the allies will reach a consensus. although there are still --
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there is still one significant obstacle. shery: tell us more about that and the if it can's of this movement he context of european security. tony: in a word, the obstacle is turkey, because turkey is a nato member. well, an important one because it is on the eastern flank, or the southeastern flank. and turkey has issues with sweden and finland about what they say is harboring terrorists. that is to say members of the kurdistan workers party, which the turkish government considers terrorists. this is still going to play out and this is where blinken's statement of confidence comes in. but that is not resolved yet. shery: tony czuczka joining us from washington.
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let's get over to vonnie quinn now with the first word headlines. vonnie: the european union is set to offer a solution to avoid reaching sanctions when buying russian gas, while satisfying vladimir putin's demands for payment in rubles. sources say the european commission will tell companies to make a clear statement that their obligations are fulfilled once they pay in euros or dollars. companies will be allowed to ocean -- open accounts in russia. india's move is set to reverberate through global agriculture markets. it comes amid a record-breaking heat wave and and already tight global supply. the indian government says the move is to protect the country's security but will still allow exports to some countries based on requests. sri lanka's new prime minister has had talks with the world bank in an effort to replenish badly depleted food, fertilizer, and medicine. he says the government faces an immediate challenge in securing
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financing to pay for fuel. he was appointed by the president last week following violent protests. australian prime minister scott morrison has made an impassioned pitch for his center-right government to be reelected for a fourth term, less than one week from the national election. his coalition held its official campaign launched sunday in brisbane, a state that is crucial for his party to win. polls currently point to an opposition victory. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: still ahead, the australian industry group joins us to discuss the country's upcoming federal election what victories could mean for business. first, high valuations, high inflation and a fed hiking cycle are a mess up he -- are a recipe for market gyrations. this is bloomberg. ♪
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haidi: key eco-data, more earnings, and major chief political events are high on the agenda this week. could help paint a dire picture of the impact of strict lockdowns on economic activity. we will be getting gdp prints out of the euro zone and japan. in hong kong, the government enters phase two of their plan to ease restrictions this week. back to china, where the pboc decides to loan primaries -- also watching for tencent numbers. shery: a big we can geopolitics. g7 finance ministers and central bankers gather in germany wednesday. we also get the eu's plan for funding reconstruction, and details on how the region plans to cut dependence on marshall
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energy. president biden also visiting asia litter this week to meet with member nations. saturday, the contentious election in australia of course gets settled. and this week we will be live out of panama for the bloomberg new economy gateway. we will speak with leaders of latin american governments and businesses and delve into key issues across trade, finance, health and climate. join us for all of those very interesting conversations. those are the major events in your week ahead. let's now bring in our next guest, who says the dip right now across level stocks is worth buying, despite the geopolitical risks. with us is andy kapyrin, partner and co-cio at region atlantic capital. always good to have you with us. what are fundamentals telling you right now about where the opportunities are? andy: 2020 was always going to be a very complicated and frustrating year because there
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are two strong narratives, both of which are credible. the bullish narrative is we are still growing in response to reopening the economy, in response to people getting closer to learning to live with the virus, although we have never quite conquered it in full. and in response to solid underlying fundamentals for companies. the earnings season just closing in the u.s. has been a surprisingly good one in the face of falling stock prices. that has created evaluation opportunity. here is the frustrating part. for all of this bullish news, there is also a ton of bearish news. inflation peaked much later than anyone expected it to before. the federal reserve is having to tighten monetary policy faster, and is likely going to experience a much higher terminal rate than anyone expected. and of course russia's invasion of ukraine is creating a lot of knock on geopolitical risk. we were talking about one of them today with finland and sweden applying to become in a members.
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it is likely by summer will be talking about another one as food shortages start to impact much of south asia and the middle east. in this environment, what it pays to do is look at the bullish news and use these pullbacks as opportunities to deploy capital. this is a dip worth buying. shery: what about the fact that sentiment remains so fragile, especially with what happened with the crypto markets and collapse of tera and the implications to the broader financial markets? how much should you hedge at this point, given that we really do not know where retail sentiment could also be headed? andy: what happened with tera over the past week is a really interesting example of what happens in fast-moving, fledgling market. crypto has gone from a curiosity to a real business over the past few years. now that is a real business, any time it has a hiccup it results in real losses for individuals, and they also own stocks and bonds. so i think you will see a lot of
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cross leveraging and cross relationships between cryptocurrency and the real market. where i think those linkages are the strongest, especially for the natural investor base for both of them, is cryptocurrency on the one hand, less profitable technology companies on the other hand. they have a lot of investors in common, especially among the venture-capital crowd. i think you'll find that will be an additional reason for those stocks not to be finding afoot today. looking at companies with stronger fundamentals, whether it is the big megacap's in the u.s., the value space, all those are finding a bid and are doing quite well in this market. haidi: you are starting to see a few brave souls waiting into government debt again. is it possible to use treasuries or other sovereign bonds as a way to manage risk without necessarily saying we have seen a peak in yields? andy: for the first time in a while it is. so, what you see in yields today
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is yields still well below the headline rate of inflation. let's look outside of treasuries, just investment grade corporate bonds. you are pushing for .5% on investment grade credit if you are buying intermediate. that is a really attractive rate. actually, that is one of the highest since the global financial crisis. and it is one that will pay off as long as inflation is contained. right now investors don't have a lot of visibility to that, but it creates a real hedge in the event you experience deflation and an economy that corrects much smoother than anyone expects. think of this -- it is not made base case, but my base case is no longer that over the next 12 months bonds will lose money. what we saw over the past 12 months is really a once in 100 year flood. what is likely to go forward is a much more normal bond market. haidi: so is that your preference, then, to be more cash on the sidelines? andy: it is my preference. cash is still a very expensive
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asset to hold. you are facing inflation running at very high rates, 6%, 7%, 8%. meanwhile you could be clipping a decent coupon and investment grade corporate, which of course does not compete with inflation, but is better than .5% in cash today. haidi: andy, always good to have you without. you can get a roundup of the stories you need to know to get your day going on the terminal at dayb . this is bloomberg. ♪
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haidi: taking a look at the day ahead for australia and new zealand, and in new zealand, the prime minister tested positive for covid over the weekend. she plans to work remotely and isolate until may 21. we will be getting april services psi out of new zealand in a few minutes. the reading in march was the first time in eight months the industry posted an expansion. in australian, we are less than one week out from the national election. scott morrison pitching for a second miracle win for his center-right government, but polls are showing an opposition victory. we will have more on the australian elections coming up, with the largest employer organization in the country
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saying it is crunch time for australia. we will speak to the ceo. shery: and we will be watching the australian open as we are getting confirmation from brambles that they are in preliminary engagement for takeover. this is the australian company in preliminary talks with cvc. they were weighing a takeover bid, and they plan to make a formal indication to brambles soon. this is a private equity firm discussing financial options for a deal with banks according to people bloomberg has spoken to, and finally getting some confirmation from brambles itself. this is bloomberg. ♪
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haidi: we have the new zealand
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numbers crossing the bloomberg. 51.4 is the number we are getting. that has fallen from 51.6 with the previous number being revised a little lower as well. it seemed to be a disappointing reading although the second straight month has been above the breakeven mark, suggested we are seeing industry expansion. but the disappointment is in it's easing covid restructure -- it's just over 40. that means we continue to see the supply chain issues remaining a headache for service sector firms, according to these latest readings. let's get you to the first word news now with vonnie quinn. vonnie: finland and sweden are set to apply for membership of nato in a dramatic change for europe's security landscape. russia's invasion of ukraine has ended an era or the two nations which have starkly shunned military alliances. they will deliver formal applications later this week.
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once their respective parliaments have signed off. goldman sachs senior chairman has urged companies and consumers to prepare for a u.s. recession. in an interview with cbs he said it is not a certainty, but there is only a narrow path to avoiding it. he added the fed is powerful tools to down inflation and has been responding well. >> do you think we are headed towards recession? >> we're certainly heading -- it is a certainly very high risk factor. but there is a path, it is a narrow path. i think the fed has very powerful tools. it is hard to finally tune them and hard to see the effects of them quickly enough to alter it. but i think they are responding well. i think it's definitely a risk. if i were running a big company i would be very prepared for it. if i was a consumer i would be prepared for it. but it is not baked in the cake. vonnie: xi jinping has warned of
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improper a key malaysian of wealth because of economic risks. in previously unpublished remarks, xi said china needs to expand of the real economy and avoid mass joblessness. he also warned of financial and property market risks. the remarks were released more than five months after xi made the speech. the pboc effectively cut the interest rate for new mortgages in an intent attempt to boost the slowing economy. they announced that first-time buyers can borrow at an interest rate as low as 4.4%, down from 4.6%. china's housing market is a crucial source of growth for the economy but has been in a slump for almost a year. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. haidi: just six days out until the australian election, polls are indicating scott morrison's center-right government is on course for defeat.
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paul allen and david ficklin joins us for more. the polls have been very wrong before us is there a chance we could see another miracle win? paul: that was the prime minister's response in 2019, he called it a miracle. he is going to need another one. early voting has begun even though the election is not until saturday. but the polls indicate the morrison government heading for defeat. the australian poll had a two party preferred with the liberal party on 46%, the labour party 54%. if that was to be replicated, that would make anthony albanese the prime minister, and give him 85 seats in the 151 seat lower house, a pretty good majority. the government obviously running very hard into these final days of the campaign. in a weird quirk of the system, it had its official campaign launch of the weekend, even
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though obviously this has been going on for weeks. the government running hard on its management of the economy. they are coming under a lot of criticism like on its treatment of women, the slow rollout of the coronavirus vaccine, and climate-related catastrophes and responsive those, including recent floods and bushfires we saw a couple years ago. shery: what could climate issues due to these elections in the traditional duopoly we see in politics there? david: it has been really interesting. there has been something of a bipartisan truce during this election campaign to not talk about climate issues too much. they are quite difficult for both sides of politics. for the labour party, the left of center party, which would normally be on the front foot on climate, they have a lot of voters who are traditional blue-collar working-class voters and a few coal mining regions.
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so it's an issue that many people in the labour party feel somewhat cost them the last 2019 election. so they feel awkward about that. the government as well, it is a coalition between the liberal party in a national party. the liberals are more of an urban wing, and the national party are the rrual wing. the national wing are strongly pro-coal, and they have a challenge balancing the two wings. i was in melbourne last week in the real traditional heartland areas for the liberal party, which are much more of an affluent electorate who strongly wants action on climate change. a lot of the voters i spoke to, it was the number one issue for them. if you look at all the electorate, 30% of the electorate say is that is the number one issue, head of cost-of-living, economy, defense, all put together. so it is a big issue. but as i say, neither party is
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able to act well on it because it cuts across their coalitions. a really interesting thing we are watching this election is the rise of independent candidates. there's a lot of climate-focused independent candidates focusing on climate, on gender issues, and anticorruption. and it looks like some of them may perform very well in this election, and that may change the tenor of australian politics for a while. haidi: you can see the rise of the teal independent running on climate as a very powerful narrative too. what sort of makeup would we need from this election result for these independents to be able to have a say when it comes to their campaign platforms, particularly when it comes to climate? david: that is the interesting thing. as paul said, the current polling has labour doing very well, 54%. if labour wins that sort of majority, they probably don't need the independents. 86 seats in the parliament, then
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the independents won't matter at all in the house of representatives. they are not really running to any great extent. there are few people aligned in the senate, but they are not to the same extent. obviously, any legislation has to get through the senate, but if it is in the hands of rep resented his the policy is formed. haidi: amid the political point scoring ahead of the election may 21, australian's have not heard many true policy debates around challenges facing the country. australian industry group ceo innes willox says the next parliament is crunch time for australia. he joins us now from melbourne. always great to have you with us. climate is top of mind when it comes to a key issue for voters. it is also something that comes up time and time again from businesses of all sides, being able to gauge and plan for this
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risk coming from climate change. is that something that you are hearing from your members, and what to they want to see from the next government? innes: there are a couple of big issues that obviously business employers want to see canvassed as part of the election, and then dealt with after the election. so, a clear pathway on climate policy is one of those issues. and we have not gotten that, really, at the moment. the current government is maintaining its technology, not taxes line. that is where they continue to go. the opposition labour party is saying they would hold summit with business unions and other groups around how to address the pace of change when we get towards the 2030 and then 2050 target. there's a lot of conversation about what they would do with the baselines, what businesses
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are allowed to emit, what can be done with those. but the reality is on the big issues that impact us economically, clement among them, that are around taxation, workplace relations, the supply side of our economy, there has not been a lot of debate in this election, and it has been a policy reform-freezone, this election. you have one party saying you can trust us and rely on us when it comes to economic antigen and national security, and the other major party saying we have had a long time in government, and it is time for them to go. we need to refocus the economy and the community. it is not clear that we will get a clear result we may end up with a hung parliament with no party having control. that would be very difficult. we have done that before just over a decade ago, and that was
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a very difficult time for government and all who work with government. so, business one way or another would like some certainty in the result, and then clarity around what the next government will do. and this campaign has not really brought that forward. haidi: a lot of the focus has rightly so been on the rising cost of living for households. but for businesses, has one party or another really presented solutions when it comes to some of those issues you touched on, supply chain issues, the trade relationship with major trading partners? innes: it has been like marie celeste, vanished without a trace without the campaign, conversation on those issues. the fact is we do in australia face sums -- i have to say, the economy has done relatively very well compared to other parts of the world. but we have not seen the conversations around the big
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issues and the impact around what is going on globally in the economy have on australian. we're just like everyone else, we're going to face a potential contraction of our economy over the next 12 to 18 months. what is driving that already supply chain issues. we have seen a lot of exports out on bulk carriers, coal, iron or brands and the like. what we need brought into the country is on containers. so, we have seen massive disruption in shipping, we've seen costs go up six times, we're seeing huge constraints on supply chains. they are just not being talked about at the moment as part of this election campaign. i'm not sure any party has any quick answers to it. shery: what would you want to see as answers coming from either party? innes: the big issue that we have at the moment is we have a lack of people. we are about one million people less than we would have been without the pandemic. and we have huge employment
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difficulties at the moment. we have half a million unfilled jobs in the australian labor market of about 13.5 million people. that is on the problem for people. -- that's got to be the first issue that has got to be addressed by whoever wins the next election. shery: i was going to say, would you tackle those issues through migration policies, and what sort of policies do you want to see? also, where'd you go with minimum wage policies? what is business stance on this? innes: quickly on migration, the fact is that we closed our borders for two years. we're now working hard to try and encourage people to come to australia. it used to be a place where everyone wants to come, but now reputational he we have been damaged, unfortunately.
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so we have to work hard to turn that around so people are reminded that that we are an open and welcoming economy. that is something we need to do. on the minimum wage, our industrial tribunal next month rings down a decision on the minimum wage. inflation here is running at 5.1%, as per the last quarter. the unions would like a 5.5% increase. employers are saying an increase between 2.5% and 3%. plus, the measurement government is taking, -- we're in a high inflation environment. cost of living and cost of doing business are two of the biggest issues. we have the world's highest minimum wage at the moment, and a union increase would add that to about $40 a week. some would say that is $1 an hour. but for a lot of businesses,
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particularly with the economy be made up of smaller businesses. shery: it was really good to have your insights. as we head towards the australian federal elections we will have more insight. listen to our podcast, australia decides, hosted by paul allen. that is updated weekly as we head for the vote on may 21. and also available where you get your podcasts. this is bloomberg. ♪
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shery: time for morning calls ahead of the asian trading day. we will be watching lloyd blankfein's warning on a u.s. recession. economists are also slashing growth forecast for this year and next. they now expect 2.4% growth in 2022 and only 1.6% in 2023 as the fed tightens. the slowdown should help lower job openings and they are optimistic it will not trigger a sharp jump in the jobless rate. when it comes to the markets, sentiment starting to turn a little brighter for battered chinese stocks. a fund manager saying some valuations are now cheap enough that it is worth taking a chance. the firm has been buying back into the markets insulate march.
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investors are counting on eventual government stimulus and the lifting of lockdowns boosting growth. of course we have been talking about this for the longest time now. haidi: yeah. we have also been talking about volatility in the markets. we are seeing a recovery in bitcoin, it is managed to hold above the $30,000 level. this came after it plunged late last week after the tera stable client -- coin collapsed. it is about $30,000, so does that show a level of resiliency when it comes to this cryptocurrency? su: that seems to be the word. the ceo of bytedance tweeted out that there is newfound resilience in the bitcoin market. and if we drop into the bloomberg, you might notice that past crashes, notably the crypto winter in 2018, saw bitcoin taking months if not years to see a bounceback.
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and yet now we are already back in the green, and a big difference we are seeing in this brisk bounceback, if you want to call it that, it is not just bitcoin in some old coins now moving higher. there's a lot more institutional investors, and they say these -- they see this pullback is a buying opportunity. green across the screen. that is crypto's recovery beginning on sunday. the total market value of digital currencies has dropped by about $350 billion, and bitcoin is still about 60% off its november all-time highs. there are a lot of challenges ahead, so crypto seems to have digested the worst of the terrausd fallout. let's drop into the chart again because a lot of questions remain about what happened to the terra, luna ecosystem. it just fell from its $1 peg and collapsed from there. it had a huge reserve of coin
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that was transferred to several accounts and researchers say it is now untraceable where that money is. that is one of the many questions that will linger on as bit point and the rest of crypto seems to be bouncing back. shery: talking about buying opportunities, we had cathie wood's arc funds being big buyers. su: cathie wood's fund came under a lot of criticism is in lid because it favored high beta tech stocks. but if you drop into the bloomberg, even as her own fund was dropping some 10% in the middle of last week, investors were flowing in. in fact it was the fifth straight week of inflows, which shows there are a lot of investor diehards that adhered to her strategy. let's talk about what else she was doing. she was buying on the dip coinbase, one of the big drags on her fund had dropped dramatically last week, and yet she bought about 860,000 shares,
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millions of dollars worth, in the week through thursday. critics and others who were taking a close look at her fund say it really has a risky strategy that tends to load up on losers. her portfolio was largely spilled with speculative bets, but she has never wavered in her conviction. you can see bitcoin, which dropped a lot, and the ark fund itself has had a lot of inflow, even as it has dropped. the buy on the dip strategy has -- is one a lot of investors still adhere to. haidi: su keenan there. shery: speaking of crypto, a decade-long crypto industry veteran discusses how he protected terra's implosion and why he says his warning about the stable coin is a public service. >> i would say that certain boxes are a little bit more honest in the sense that it is kind of like a chicken game.
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right? so, it's users competing with users, and the earlier you are, the better it does. it sounds bad and it is bad. but this is even worse than that. it is not just users competing against users. it is more like users thinking they are competing against other users, but getting funds siphoned out by investors. shery: that interview was from the oddlots podcast. we have plenty more ahead. this is bloomberg. ♪
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haidi: we are tracking the fallout of the global supply chain crunch. india will suspend overseas wheat exports. the move by the indian government is said to expose how tight the global supplies are after the war in ukraine, and is threatening to drive up prices even higher. diminishing supplies even further, egypt's prime minister says they have agreed to buy 500 tons of wheat from india, with government purchases exempt from the new ban on exports of the grain. oil prices have continued to surge after numerous nations moved to ban russian crude. last week saudi aramco surpassed apple as the world's most
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valuable company, making a net income of almost $40 billion, up 82% from the previous year. shery: very much helped by the price of oil continuing to rally. we are talking the asian session, wti above $111 per barrel. we continue to see the global squeeze on refined products and russian diesel responding sharply. we continue to watch u.s. gasoline prices, such a big issue for politics domestically. gas futures rising above $4 for the first time ever. we continue to watch the energy space, not to mention aluminum, feeling -- wavering from supply concerns. weekly decline on-demand services. wheat hitting the highest since 2008 on protectionist concerns on food supplies due to the war in ukraine. bloomberg terminal users can read more on those stores in our
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newsletter supply line. haidi: let's get you a quick check of the latest headlines. japanese -- at least two bond holders told bloomberg the consummate sent in plan payment to investors via a trustee. this is the first printable payment under an 18 month extension agreed to buy the note's holders. cvc is said to be in talks with brambles over a possible $14 billion buyout. the australian financial review reporting the private equity firm has not yet made a formal proposal and is working on funding the bid. that is it for daybreak australia. daybreak asia is next. this is bloomberg. ♪
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