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tv   Bloomberg Daybreak Australia  Bloomberg  May 22, 2022 6:00pm-7:00pm EDT

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♪ >> a very good morning.
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welcome to "daybreak: australia." i am haidi stroud-watts in sydney. >> good evening from bloomberg world headquarters in new york. i am shery ahn. the top stories. the aussie dollar opened higher as the new prime minister prepares to be sworn in. his party taking power as voters seek action on climate change and women's issues. >> president biden gets set to meet japan's prime minister as he struggles to woo asian nations wary of upsetting china. shery: and why some investors are buying emerging markets as a buying opportunity despite the risk of steeper losses. got futures coming online, extending those gains that we saw on the friday session. a dramatic rally but a late session on friday as we saw the s&p 500 just pulled back from the brink of the bear market. still, we ended without big changes. the nasdaq 100 lost 0.3%.
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we are talking about the attack wipeout of $5.5 trillion already -- we are talking about the tech wipeout of 5.5 billion dollars. the 10-year yield falling to a 2.78 level. wti in the asian session is under that pressure, towards the $110 level. the market remains pretty tight. this week is about the retail earnings that we get out of macy's, nordstrom. remember last week, we had close to a retail apocalypse, 550 billion dollars of market share being wiped out from consumer shares in the past five days, given that disastrous earnings that we saw from either walmart and target, so we are very much watching this sector as we head into the u.s. trading session this week. haidi: let's look at our asian
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markets, as australia gets set to have the first trading session as we get a change of government imminent. we know that the labor leader and four other members of his incoming cabinet will in a couple of hours. he will be heading off to tokyo for the quad meetings. very quick change of government. extraordinary results over the weekend the labour party is set to take power since 2013. when it comes to market trading, there tends to be a response regardless of who wins if you look at the last few elections. futures are in a modest decline. the aussie dollar was quoted higher in the early part of the session. we heard from cba and the ehrlich at a slightly stronger aussie after the election. we could see further gains up to $72 if we continue to see that
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using the greenback. kiwi stocks up 0.3%, but we could see further downside pressure when it comes to the kiwi dollar. we're starting to see bearish bets. it is all ordinarily talk percent from the start of may -- it is 12% down from the start of may. everybody minute sustained according to a lot of analysts. this is a country that is still celebrating that election result of the weekend. really quite extraordinary. not just the return to power since 2013 for the labour party. but also these swings and a lot of these key metropolitan cities towards independence. it was very much a result that showed a great part of the populace prioritize climate change and women's issues, which i felt government coalition of the liberal nationals did not address going into the campaign, certainly over the past couple of terms. and you can see there, the victory speech from the incoming
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prime minister and the foreign minister. shery: we are expecting him to make remarks as he is sworn in in the next few hours. this is happening so fast, given he has a very dizzy international agenda. of course, we are talking about him having conversations with the quad meeting coming up on tuesday. today, given that president biden has already finished his trip to south korea, he is talking to the japanese prime minister, we are watching that as well. we are expecting from the u.s. an indo-pacific economic framework. more details about what that means. from what that all about you heard from the chinese prime minister already reacting to the president here in asia, saying that that framework is doomed to
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fail. haidi: and a big challenge from the new government in australia. can they achieve a reset when it comes to regional security, particularly the relationship with beijing. anthony albanese will be sworn in as a prime minister today. we expect that to happen this morning. paul allen joins us with a look at what that means. they don't have a clear majority that it looked like they are increasingly likely to achieve that. what does that say for the mandate and how they will govern going forward? paul: they absolutely smash the coalition. they definitely have amended. the labour party has 72. the coalition party has 51 seats. just short of the 76 seats are needed for a majority. interesting that neither party did particularly well on the primary vote, a lot of the vote ended up going to these independents as you mentioned. here in sydney, the harbor is ringed by teal independence, along the coast. the liberal seat for 70 years,
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that looks like it will go to independent. it is a mixture between liberal blue and green, mostly women candidates competing on women's issues and the environment as well. and they have done extra me well. also another seat in brisbane, a former seat held by the former prime minister has gone to the greens. these cities are getting tired of timid climate policies from these parties. so if anthony albanese does not get the 76 seats he needs to form a simple majority, these are the people who will need to negotiate with. shery: what can we expect in terms of foreign policy, especially in terms of australia's trade with china? paul: anthony albanese had a stance on that -- no stance on that during the campaign. he declined to say whether or not he would take a call from xi jinping. relations between austria and
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china are strained. there are members of the cabinet likely to be more moderate towards china, especially on working on climate issues. elsewhere, you mentioned anthony albanese will be attending the quad on tuesday. scott morrison conceded very swiftly on friday night at one of the results wasn't because of uncertainty when it comes to austria being represented on the world stage. westerner will also remain part of the aukus pact. when it comes to spending, they will be spending more money, about $5.2 billion over the next few years. the treasury secretary says he will be working on a budget which we are likely to see in october. shery: bloomberg's paul allen with the latest on the australian elections. we mentioned the quad meeting. we know that president biden will be attending and we will continue to follow his trip in asia. he talked with south korea's new president, north korea and
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russia's war in ukraine featuring permanently. today he will meet japan's prime minister kishida reportedly will tell the u.s. president japan is ready to increase military spending. for more, let's bring in chief asia correspondent stephen engle in hong kong. geopolitics overshadowing a little bit. overshadowing his economic engagement plan since we are expecting the economic framework to be announced. stephen: obviously, geopolitics are at the four. between president biden and the new president in seoul over the weekend. russia charred permanently as of course the issues with north korea which is battling an outbreak of covid and also battling the sabres a bit with biden in the region. the two had a press conference and the south korean president called this democracies and autocracies competing for supremacy. north korea at the fore as well. biden did not dismiss the
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possibility of, at some point meeting with kim jong-un. it only if kim was prepared to come to the table and meet in good faith. highly, highly unlikely in the next two days between now and tomorrow that that kind of meeting would happen, especially since biden now is in japan, where he will meet with prime minister kishida today. we are hearing that kishida will inform president biden of japan's intention to increase defense spending. that is a highly controversial subject in japan which has a pacifist constitution. shinzo abe had tried to alter that constitution. we should that is looking at the threads regionally and globally and thinking they need to pay more of their way. japan's percentage of defense spending to gdp is 1% right now compared to the goal of 2% for most native nations. so there is room.
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essentially the backdrop of all of this, i have not even mentioned china -- china is watching intently as biden is in the region with two of its biggest allies ahead of the quad meeting tomorrow, which will feature japan, the united states, india, where prime minister modi will be as well, as paul just said. and mr. albanese, going from the domestic frying pan to the international frying pan in the quad meeting tomorrow. i have not even mentioned china, it is at the backdrop of all of these discussions. and you mentioned the foreign minister of china decrying the biden administration's indo-pacific strategy and the ipf, the indo-pacific economic framework that is taking a backseat right now. essentially biden's economic blueprint for the asia-pacific, which has gotten a muted response even in the united states. 50 senators in the u.s. are calling for taiwan's invitation,
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which will clearly upset reaching. wang yi says that policy is doomed to fail. lots to cover. shery:. shery: our chief north asia correspondent, lots to cover. haidi: stephen engle in hong kong. well, the wreckage of a $5 trillion rout in emerging is starting to look like an opportunity for investors. let's talk to garfield reynolds, mliv jupiter. this week we had a pretty extraordinary election results over the weekend for australia. lots for investors to think about. garfield: that is definitely true. there is also a lot of chatter that maybe this is the bottom, maybe this is the time to buy, which sets us up for a fascinating couple of weeks considering that we have had a few buy the dip moments already that have turned into fresh calls for shares, both emerging
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and in developed markets to drop. one thing that is potentially going to come to the aid for emerging markets is china finally getting more serious about easing policy. that is very important if you're have chinese shares that will turn around, that could help bring emerging market shares up. the big concern is that going forward the rest of this year, energy prices both fuels but also electricity prices and the capacity for countries to keep themselves switched on, so to speak, those will be a major concern as we move towards the northern summer. but is this sort of thing that has -- that has already caused pain in places like sri lanka and pakistan and elsewhere in emerging markets. it has got to be concern that the global economy is exposed to what is going on with energy,
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and emerging markets are more exposed than others. shery: bloomberg's chief rates correspondent for asia and mliv contributor, garfield reynolds. now let's get over to vonnie quinn with the first word headlines. vonnie: shanghai will start categorizing parts of the city by covid risk, as authorities take new steps to beat infections amid a strict lockdown that began in march. starting next month, parts of shanghai will be designated as low, medium or high risk areas. 14 days without community infection will be considered low risk. medium to high risk areas, will have residents restricted to their homes. president biden has warned about the growing monkey parks outbreak after two cases were confirmed in the u.s.. the rare and potentially deadly cousin of the smallpox virus is traditionally confined to regions of africa, but infections have been rising in europe and north america. biden says that's part of the virus could be consequential, and his advisers are working on a response. pakistan former prime minister imran khan is asking supporters
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to march to islamabad to press for new elections. it is likely to fuel further political instability in a country already facing an economic crisis from raising efficient. the former prime minister has held a few rallies recently urging anger against the current government. 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 am vonnie quinn. this is bloomberg. shery: still ahead, the labour party leader anthony albanese, such to be sworn in as australia's next prime minister.
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shery: let's look at the major events in the week ahead. the world economic forum is underway in davos, the first in person gathering incident since the start of the pandemic. it comes at a time of massive economic uncertainty. one clue will be the fed minutes on wednesday along with policy decisions in new zealand and south korea. tac will be in focus amid th ctor's $5.5 trillion wipeout. and elon musk will diminish twitter at the meeting this week. we will also get earnings from alibaba and nvidia. haidi: as we know, calling a bottom inditex meltdown is not easy -- in the tech meltdown is not easy. that is in line with long-term averages. analysts say the fall in the evaluations and extreme bearish sentiment could mean there is light at the end of the tunnel. investors will also be weighing in australia the labour party
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victory in the elections this weekend. and the incoming prime minister to be sworn in. his test comes as early as tuesday. and is likely for -- he's likely -- he and his likely foreign minister will be flying to the quad meeting in the week ahead. shery: let's discuss these major events in more detail with chris western. great to have you with us. there is a lot for investors to digest this week. what will you be watching? chris: i think we get a continuation of what we saw last week in terms of a softer dollar. it would be welcomed by equity traders. we saw the s&p down to 3855 in futures. some good defense. a softer dollar would get people trading from the long side, covering some of those equity
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shorts. real rates are very much in focus. we could see a lowering in real rates and that could give equity markets some reading room. credit is really important as well. high-yield credit last week blew out 500 basis points against u.s. treasuries. the cdx as well. if high-yield credit continues in its current trajectory, deterioration in the equity markets could roll over. so we are really watching the equity markets here. it led -- a leg lower and he could get nasty. >> especially with the bear. we had a dramatic late session rally that pulled us away from the percent decline. but is that just a matter of time question mark how do you position? >> i think the s&p will be trading close to 3400. in the short term i think there is a real risk. the only thing we look at is that distribution of outcomes.
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i think there is a skew that we get higher levels in the s&p and nasdaq. everything bears sentiment is so -- sentiment is so distorted at the moment. maybe some dealers want to close up shorts today. but it will be a short-lived reprieve. in the short-term, taking a modest view, that could give us a slightly weaker dollar this week against the yen. maybe the aussie has a pop this week, some of those high currencies and commodity prices continue to firm. but i would not be getting carried away. it could go another leg lower. if we get a leg lower this week, and my thesis about a short-term equity rally is wrong, we could see it getting pretty ugly out there. everyone is hanging their hat on a short-term rally, but if it does not come, a lot of people will be dying.
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volatility will be the name of the game. haidi: if you are assuming further dollar weakness, which currency pairs would you be selling into? chris: the best trade of last week was against the swiss franc. dollar swiss fell sharply. we saw a reversal. that could be the way to go. i am a good fan of finding what is strong and what is weak marrying the two together. a continuation of that going forward. if the nasdaq manages to find some sort of form, fx will probably be the place to go. the thing about the swiss franc, it is starting to get some cyclical factors in there. you have some quality and it is still working quite well. i think dollar-yen probably takes lower. the most important pair for global markets more broadly is officially dollar-cnh. if we saw a move lower in dollar cnh, it would translate.
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i would love to see the euro-dollar pushing above 106.50. but for me, the standout one is what worked last week and that is dollar-swiss to the downside. haidi:. haidi: what happens with today yen? we have seen stability. it always feels like the market is still recalibrating after the huge momentum of moves that we saw. chris: i guess if you are on the treasury market, or we going to see front and yields lower question mark are we going to see a flatter curve? i would expect a flatter curve. a new lower in u.s. treasuries on a nominal basis and a real basis, then dollar-yen goes lower. taking everyone's view of bank of japan policy, there is the global leader this year but nothing anytime soon that we see the move anywhere away from negative threats. i think later this year will see the band being moved, the yield
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curve control band. but here right now, you have to take a view of what happens in the treasury market. if we see every pricing in the front-end of the curve, that will not be great given information is very high. but if we see five or six basis, it is probably good that we could see a rally in dollar-yen. haidi: owners great to have you with us, chris weston from pepperstone group, head of research. this weekend kicks off our live coverage of davos. don't miss our interviews with some of these executives and many, many more great conversations here on bloomberg television. here is --this is bloomberg. ♪
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>> let's look at the day ahead for australia. we continue to track reaction from the elections as anthony albanese is labor party is set to take power for the first time since 2013. . he will be sworn in shortly and then fly to japan to attend the quad meeting. president biden and the new zealand prime minister jacinda ardern congratulated been easy. button says he appreciates -- biden says he appreciates albanese's commitment to climate
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change. there is a new favorite to replace scott morrison as leader of the liberal party. we will have more insight into the election and implications with a lecturer, jill sheppard, joining us next. let's look at how we are setting up the start of the trading session this morning. we are seeing a little bit of fluctuation in sydney futures, a bit of weakness at the start of trading. the aussie dollar is picking up momentum, though, trading above the uss. seeing
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>> you're watching daybreak australia. i am vonnie quinn with the first word headlines. the chinese foreign minister has
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criticized washington's indo-pacific strategy as president biden visits the region to increase engagement with allies. he says that strategy is, quote, "do too failed and will create divisions, inside confrontation, and destroy peace." it is part of efforts to contact china's influence in asia. a gathering of apac trade ministers in hong kong failed to issue a joint statement after two countries staged a walkout. they apparently worked out during remarks by russia's economic development minister. and the russian delegation boycotted a speech by a u.s. official. bangkok voters overwhelmingly backed an independent to become governor in first election in a decade. he now faces the economic challenge of rebuilding bangkok's pre-pandemic status as a tourism hub.
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the outcome is seen as a pointer to the general elections due early next year. the formula will start arriving in u.s. doors as early as this week. a military plane delivered more than two tons of it from europe as part of the program. supply chain snarls or worsened in february when the biggest formula manufacturer issued a recall and closed it -- closed a plant after four infants fell ill. 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 am vonnie quinn. this is bloomberg. haidi: australia rejected the right-wing government after almost a decade in power. as vote-counting continues, it appears that the liberal party is likely to form a majority government. australia's political development has changed. to discuss that, we are joined by anu politics lecturer, jill
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sheppard. it feels like the labor win is the headlines. but the shift to the greens, what is going on in queensland, what is all of this, what is the picture it paints for you? >> i think this is a repudiation of the two major parties, particularly their right-wing coalition government, because they are in power, but it is also not particularly rousing support of electoral popularity of the labor opposition. we will see probably the biggest group of independent and minor party parliamentarians ever see in history and politics. we don't have the system of government that lends itself to a lot of deliberation or a lot of cross-party negotiation, so this will be a fascinating new stage in australian politics. haidi: what does it mean for
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albanese's mandate and his leadership, because with the election cycle, of course they are thinking about what happens to secure a second term. how much, even if they scrape by with a simple majority, how much will they need to work with the independents the greens, and becoming more ambitious when it comes to climate policies? >> we have three cycles in australia so to enact a mandate, you have to get working quickly. probably happily for the labor government, they have not promised a great deal, but they read a small target strategy. so the policy could remain a continuation of what the coalition government was doing before this. what they are talking about doing is the quad meeting in japan first and foremost and then moving from that, focusing
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on reconciliation with indigenous both and with what albanese calls a uniting stereotype of approach to governing. what that means remains to be seen, because as i said, none of this was really laid out going into the election. so the government's mandate is as big or as little as it wants to be. . i think australians will be shocked, though, if this government embarks on a huge reform spree. shery: what about china? what can we expect on australia's approach to the country? we heard from albanese that the chinese have become more aggressive, during the campaign. jill: this is an interesting aspect of this new government. i think the heart of this government will be the continuation of liberal party's at times fairly brisk attitude towards china. i don't think there will be much
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enthusiasm for renewing a close relationship with the chinese government. on the other hand, we have an incoming foreign minister with chinese heritage, so that will be an interesting new element to foreign relations in australia that we are not quite used to. making predictions at this point feels incredibly tough. shery: this election, how much was it a choice about personalities, whether it is scott morrison against anthony albanese question mark and what kind of leadership can we expect from this new prime minister? jill: i think this is about personality as much as anything. policy platforms of the two parties are really remarkably similar. it does not seem to have been a referendum on economic policy. just last week, the outgoing treasurer announced that we have an unemployment rate of less than 4%, which is historically low in australia, we haven't seen for good like that since the 1970's. but he lost his seat, not just
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the government. so this was really about credibility about trustworthiness, and about who probably is most deserving of the running of the country. it's not just a referendum on past performance, but just the sense that we need to try something different, that we have a very stable two-party system. anyone would look from outside at the leaders and think they are similar characters, and they are. i think australians were getting fed up with the lack of choice. haidi: what happens to the liberal national coalition? we had that the heartlands for liberals has been decimated. how easy will it be for them to win these seats? and what do you think about the partnership? somebody said the libs need to reassess being more ambitious on climate. that will not happen with the
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coalition. so where do we go from here? jill: liberals have not just lost the moderate heart rent the electorate, they lost moderate leadership within the party. so the future of the party was tied up in names -- leaders who traditionally lived in the moderate wing of the party. so we will see a real push to the right end. as far as the coalition agreement, the arrangement the liberal party has with it for the right wing party that represents the rural areas in australia, as far as that goes, it is probably in safer hands than before, but that is terrible news for the coalition because, as you say, it is just too right-wing for most voters in australia, and as issues like climate change and relations with china, a more progressive style policy areas become more
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important to most australians, that coalition, if it sits on the right flank, it is not going to be a viable prospect. so it is time for some soul-searching for the liberal party. but i am not sure really is left to lead that soul-searching. haidi: and probably soul-searching when it comes to the treatment of women and women's issues. 57% women in the senate, 37 percent women in the lower house after this election. what do you think of the numbers? this is also an election where we saw women voters making themselves heard really? jill: it remains to be seen how much this result is driven by women voters certainly, that is the narrative that was leading the papers yesterday and today. i am less bullish on that. i think we need to wait and see more individual-level data. but in terms of women's representation, absolutely. this is increasingly an issue in
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australian politics. i think the next issue to emerge in australia i think is ethnic representation. we had such an incredibly high rate of first and second-generation migrants, up to one quarter of the population of second-generation level, but they are grossly underrepresented. our parliament is traditionally very, very white australian. that is a huge problem for both parties going forward. now, again, whether this becomes a moment of reckoning remains to be seen, because these institutions are traditionally slow to reform themselves. they will have to respond to this electoral denunciation. but whether they have the goodwill internally to actually change themselves, remains to be seen. shery: jill sheppard, always good to have you on with us, joining us from canberra
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university, politics lecturer. for more on this election, check out bloomberg "australia decides" podcast. that is available wherever you get your favorite podcasts. next, shanghai takes steps to ease its two-month low loan. we analyze the decision to introduce-risk category's across the city. this is bloomberg. ♪
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haidi: let's get the latest on the company situation in china. parts of beijing remain under restrictions after 94 cases were reported on sunday. a two month long lockdown continues in the meantime for parts of shanghai, as the city takes steps to curb the outbreak. let's get more from bloomberg's editor for asia global business. what is the state of play? emma: in shanghai, we are seeing this very gradual step toward easing the lockdown. you can tell they don't want to make a wrong step and risk another flare up with this latest round of easing moves. what they're going to divide the city into low, medium, and high risk. the emission mission -- the definition of a high-risk area is where they have not seen covid community infections for 14 days.
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given that we have amount of community infections in shanghai for some time, it should constitute a fair bit of the city, though we don't know how many districts have been divided up in this way. but it is a cautious step towards getting that pretty brutal lockdown while restrictions are ongoing, as you said, in beijing, given the ongoing smaller, but persistent outbreak there. shery: a yet we are still struggling with the pandemic, and talking about fears of a new disease. what is this monkeypox that president biden is talking about? emma: president biting in the region in the weekend -- president biden in the region over the weekend. he was asked this by the white house press corps and he said he was very concerned about the emergence of monkeypox which you have seen cases in north america, europe, israel, and australia. much last contagious and
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different virus from covid -- much less contagious and different virus from covid. but we are going to see an increasingly number of verses crossing over from animals and this one is the result of the fact that we have not seen vaccinating for smallpox over the last couple of decades, after it was eradicated. so we are seeing more diseases from that pox family coming out and spreading from where they originally crossed over. that is the case with this monkeypox disease. it does require more close contact due to the high contagiousness of covid. it is a very different disease, but that said, what we are definitely keeping an eye on one that i think markets and investors will be keeping an eye on too, because covid has brought a new sense of
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sensitivity as a factor in many things. haidi: certainly the heightened response, whenever you see any headline or something exist. emma o'brien, managing director for asia and global business. let's get a check of the situation when it comes to rates and currencies here in new zealand and australia. australia continuing to see the current of the seats -- counting of the seats, but the labor party government looking more likely that they will join the majority government, ending the liberal-national coalition government in australia since 2013. a pretty stable future in both the three year and 10 year. treasuries rallying, getting a bit of a reality check as we continue to see the curb by the hawkish fed talk, we tend to see that mirroring when it comes the situation here in australia as well. the 10 year seeing a monthly low, as the equity
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selloff is happening. bloomberg economics is expecting rate hikes by 25 basis points at that meeting on wednesdayp also not ruling out a 50 basis point move, given how much hawkish nurse and aggressiveness we have seen in terms of signaling from the rbn said. we -- from the rbnz. the majority view is that the official cash rate should be increased by 50 basis points, not 25. there is a lot of concern about inflation and the need to move quickly to raise it to a percent . shery: those concerns about price pressures are pretty global. germany's finance chief is calling inflation at huge danger for economic department. he spoke exclusively with bloomberg about global efforts to contain rising price pressures. >> inflation in the long-term,
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we need sustainable growth for all of our economies. we have to take growth in a sustainable, inclusive way. it is a long-term project. we have defendants transitions to a greener economy, digitalization. we have special challenges for mankind. but in the short-term, we have to deal with rising inflation rates. this i think is the key for our economy, that we reach again the level of 2% inflation rate. now, we have to take tough decisions. the central banks of the one hand, and on the other hand, the governments with their fiscal policy measures. i am favor of a neutral fiscal stance.
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we have to maintain a stable macroeconomic environment. i suggest to focus on the supply side of economic policies, which means not to pay subsidies and subsidies and subsidies, but improving the surrounding ecosystem for businesses. invest in education, research, and development. to have productivity progress and not effects on the price level which is already high. >> so your message is that inflation as it stands for you as finance minister in germany is not acceptable. >> not germany, it is all the g7 countries. the key priority, to fight inflation with tough decisions. but in the first instance, it is
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responsibility for the central banks. then we have to approach it as governments. haidi: the german finance minister, christian lindner, speaking exclusively to bloomberg's maria tadeo. this week also kicks off our live coverage from davos. don't miss our interview with selena georgieva, the imf director, christine lagarde, the e.u. commissioner for economy, and the nasdaq president and ceo, just some of the names that will be joining us. just some of the names here on daybreak. this is bloomberg. ♪
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shery: a look at trading in bitcoin. the largest crypto currency has hundred back in the green -- has found its way back to the green. but many analysts are warning investors to embrace for lower lows if that selloff in stocks continues. bloomberg's su keenan joins us. is this sort of the calm before another storm? su: it could be. many times when stocks fall out, crypto goes along with it and in an accelerated manner. technical analysts are warning of something that could send prices lower. while you are seeing a lot of green on the screen now, bitcoin
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above the key 30,000 level after the rough ride over the weekend, one analyst notes that a popular crypto analyst has told his more than 200,000 followers that the bottom may still be months away, six-eight months away, based on other bear markets for bitcoin. mike never, numeral, the founder of galaxy digital holdings, said don't try to pick the bottom -- mike novogratzs. rep. comer: dogecoin and solana have lost roughly 30%. you are looking at bloomberg now. anybody who bought into the crypto market in the last two years is either flat or showing a lot of red in terms of losses. shiba inu, acorn that was
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created as a joke, it is down 80%. analysts looking at previous bear markets have seen pullbacks of 84% from their highs. based on that historic level, that would be near 11,000 for bitcoin gave it were to follow this historic pattern. again, a lot of these bitcoin analysts are advising followers who remain optimistic on this is the future, to reduce their exposure for now. haidi: there is a new stablecoin despite what we saw, the collapse of terra. su: surprisingly it has not dulled the enthusiasm of one crypto entrepreneur. he is out with a new law-based stablecoin that he says is offering a yield of 30%. you are looking at the project that was known as terra.
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terra usd and its sister token luna lost a lot over the weekend. there is a lot of scrutiny on these stablecoin which were the biggest parts of the cornerstone of decentralized finance. terra was an algorithmic stablecoin. what justin sun is saying is that if tomorrow regulators decide to ban stablecoin, he believes it would pose a great risk to the system. he thinks it is important to have a stablecoin that is not controlled by a third party. meanwhile, novogratz and many other champions of terra stablecoin sade it was a noble and innovative experiment, but one that failed. so we will keep our eyes out on
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this new coin. back to you. haidi: bloomberg's su keenan there. let's get you a quick check of the business flash headlines. didi shareholders are expected to vote in favor of de-listing in new york on monday. it will end 11 months of turmoil after its u.s. debut sparked a strong string of revelatory crackdowns by beijing, wiping $60 billion of didi's market value. it could also clear the way for a possible vote in hong kong. there is a resurgence of development in shanghai. most of the workers are based in the district where tesla's factory and other carmakers are located. that is it for "daybreak: australia." "daybreak: asia" is next. this is bloomberg. ♪
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