th bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... to receive fifty percent off installation. and take advantage of our special offer of no payments for eighteen months. >> good morning and welcome to "bloomberg daybreak: australia." we are counting down to asia's major market open. >> good evening. haidi: your top stories, a cyber attack on the biggest gas pipeline in the u.s. threatens to a bed supplies with no restart insight. the white house vows a crackdown

as ransomware packers up the ante. australia's prime minister reports the appetite to open borders -- no plans to open borders soon as sydney extends restrictions. annette focus of attention on the economic recovery. after a week u.s. jobs report eases concerns about québec since to mills focus now on inflation and retail data. kathleen: time for a quick check on early trading to start the week. we are going to look at the s&p futures. you may recall if you are watching the u.s. friday, the s&p 500 did hit a fresh record. you can see it looks like it is trying to build on the gains now. it was after the jobs report was weaker than expected, leading to investors and traders to assume, the fed may not be quick to taper bond purchases, let's buy stocks. now, the dollar on the same

supposition, slumped to a tenant half week low -- a 10 and a half week low, and this is giving a halo around emerging-market currencies, as we get the asian trading day underway. new york crude and brent crude now, future showing a move higher. there was a pullback on friday. perhaps the idea that colonial is going to be able to get its pipeline, at least the smaller pipelines, going and keep those going. still no statement i when the biggest pipeline, that takes oil from the gulf coast as far as new york, north carolina, is getting underway. but encouraging and we are seeing the green there. so if put this together for us, what our markets looking like in asia now? sophie: we will keep a close watch on energy markets here in asia given what we have seen friday. we are seeing a pickup in futures for natural gas. you have not guess -- natgas

futures eying a three dollar mark. this inflation debate continues in light of the commodities rally piling and across the complex and is supportive backdrop for cyclicals and commodity producers. the asx 200 snapping a two-week decline. mining stocks track the rise in metals prices. in australia we are watching for updates on a potential bid from star for crown. in new zealand we are seeing kiwi stocks lose ground, 82 milk under pressure dropping 16% here this, after it lowered annual earnings forecast for the fourth time since september. check out the aussie dollar the 78 handle. net logs rising for the currency a meta-commodity boom adding for the future for the rebound in australia that has td securities seeing at tightening happening sooner than expected and austria. in the em space we will get inflation reports for brazil, china and india. ahead of that we had the msi

emerging currency index at fresh all-time highs. a lot of focus than on energy specifically within the commodities space. haidi: yes, and let's get back to the top story, the ransomware attack on the operator of america's largest pipeline, it is threatening to destabilize supply. it has given no timetable yet for restart seeing they will bring back systems when it is safe to do so. let's cross to our securities reporter from new york. william, what we know about it, what is the latest? and we have an idea of the next steps? >> thank you for having me, right now, we know very little. colonial put out a new statement saying they're working out a plan to get the mainlines back in operation, and that some lateral lines are back in operation. other words as it pertains to the hack, we do not know exact what is going on. we reported last night hackers had stolen almost 100 gigabytes of data from colonial, and were

threatening to release at, if they did not pay their ransom. -- release it if they do not pay the ransom. but it is unknown now if they're considering paying the ransom are trying to solve the problem in another way. >> you mentioned colonial does not know broadly and they will come back online. we do not know if they will pay the ransomware bill come at the same time, have their operations been disrupted, making it difficult to get that mainline, that goes from the gulf coast to northeast, going again? >> right. so the hackers were not able to lock up computers on the i.t. network of the company. so what was not the actual computers that control the pipes and flows and all that. but they were forced to take that system off-line, i think and fears it could spread to that and have more damaging, long-lasting impact.

but, you know, sometimes those i.t. systems are just as critical as the kind of systems that operate the pipeline itself. but, you know, it, it remains to be seen what kind of contingency plan they might have for something like this, or if they will be able to resolve the [indiscernible] haidi: compared to other types of ransomware events, is this different are the same kind of playbook you would usually see? >> you know, it is different, in terms of the scale, and the boldness, and the impact. you know, i'm not sure anything like this has ever happened before but, you know, if you were to compare it to what is happening in [indiscernible] recently with bigger and bolder attacks. not only locking up computers and demanding ransom, but stealing sensitive data and demanding ransom for that, that is par for the course. but, you know, we have kind of been spiraling out of control as

it comes to ransomware in the last year. haidi: great to have you with us, our cybersecurity reporter and we begin -- we continue to watch crude markets trading in asia as you get the latest on that colonial hacking. we do have development so to comes to crown resorts, the appointment of the chief executive officer, managing director naming steve icon. mr. micon last year delayed retirement to lead the group response to the covid-19 packed a mic and he has retired from the board as of may 2021. he would be joining crown after that, effective june 1 and will take that ceo and managing director role as well. we are hearing helen couldn't will continue to perform the executive responsibilities in the interim -- helen kunin will continue to perform as possible is in the interim. when it comes to trading for

crowd resorts -- crown resorts, lack stone raising its bid for crown resorts to above 12 aussie dollars per share. the star casino to make a $12 billion offer for crown resorts. kathleen: let's return to colonial news, the latest on how the market is reacting. su keenan joins us. if i'm an oil trader, a lot of uncertainty. the country's biggest pipeline scrambling to protect their positions, what are they doing? su: traders are worried as we heard, no timeline on restarting this biggest pipeline, two days after the attack. so if we look to how futures are trading now, we saw gasoline futures for instance shoot up, or than 4%. it has now pared that gain and is up just 1.7%. diesel and lawyer -- diesel and oil press lesser affected. we are seeing among traders -- diesel and oil perhaps less affected.

we are seeing a lack of clarity. traders are telling bloomberg are looking to other means, trying to secure vessels that would deliver gas that would normally be shipped over the colonial system. we are also told by sources close to the situation, that some takers have been secured and reserved, possibly to store gas in the gulf of mexico, in anticipation of shortages ahead. the outage comes just as the u.s. is getting ready to kick off the summer driving season. this is the time of year when the energy industry ramps up production. we also have been hearing because of the pandemic, many americans are raring to go, to get on the road and go to their favorite vacation places, or get on a jet. and this is the fuel that is not available right now. so, some are concerned we could see gasoline prices at the pump soar to the highest in seven years. we already know gasoline prices are just around the three dollar

mark. it had been looking like apple supply going into the holiday -- like ample supply going into the holiday. we are being told a u.s. commerce secretary, gina raimondo, is overseeing efforts, for the white house. they are saying it is all hands on deck at this point, to get everything in line, to avoid the kind of shortages we typically see on the eastern seaboard, after a major hurricane or back during the days of hurricane sandy. haidi: and this cyberattack is the latest in a series of recent energy hacks we have seen. what are experts hang about the urgency to act here? su: they are saying it is pretty significant. because, as you said, while there has never been a cyberattack of this size on a pipeline, there certainly have been many. you can go back to 2012, saudi arabia state owned facility was hit.

in 2016, cyberattacks took out quarter of ukraine power grid. in 2018, we saw several u.s. national -- natural gas pipelines hit. 2019, the pemex facility in mexico. last year we had u.s. natural gas lines down for two full days. again, that is a significant disruption. but nothing on the scale of what we could possibly see here, with the colonial pipeline being taken out. these prior attacks, minor as they were in comparison, had significant ripple effects. one observer stated, who was been watching these ransomware attacks, that it is now critically important, that the energy systems in the u.s. at least, have some cyber resilience. as we just heard, it is a troubling matter, these ransomware attacks are critical problems to solve, because often, paying the ransom, is the easiest path to go, yet that

what again, invite products down the road. so, again, we are three weeks away from the kickoff to the summer driving season in the u.s. and right now we are up significantly on the futures for gasoline. haidi: another twist and turn in the oil crude market story. su keenan there and we will have plenty more analysis ahead. cba planning and energy analysis exec will join us in the next hour, and getting more details on the news we were reporting earlier. blackstone sweetens the crown resorts takeover offer to 12.35 australian dollars per share, crown confirming that report that blackstone lifted the offer to aus $12.35 per share. a new offer sent to the casino grew bored of the weekend was made on an nonbinding basis

subject to approval and a diligence according to the report. also according to the report we saw conditions dropped, and they were committed to be ready to buy crown resorts in the third quarter. we have also at the same time seen report according to the sydney morning herald another casino operator, star entertainment group, is said to make a competing $12 billion aus offer for crown resorts. we will get you the details on that story as they get to us. let's get over to vonnie quinn with first word headlines. vonnie: india's capital has extended a locked for another weekend, adopting stricter restrictions to control new waves of covid-19 infections, restrictions that have been set to end monday will now run until may 17. india is battling the world's fastest-growing outbreak of the virus, reporting 403,000 cases sunday, along with 4000 deaths. tokyo successfully completed a test event at its national

stadium in the count to the olympics. 1600 athletes, organizers and media, got an early look sunday at what the games will look like when they begin july 23. anti-infection protocols were in place, including temperature checks and mandatory masks. friday, the government extended tokyo's virus state of emergency and the end of may. european leaders urged president biden to lift restrictions, on covid vaccine exports before embarking on complex discussions about patent waivers. friday, the u.s. suggested suspending intellectual property rights to boost a supply of shots for poorer countries. gathering in portugal over the weekend, leaders of germany, france, and italy said, while they may boost supplies longer-term, action is needed now. the fifth most valuable cryptocurrency, dogecoin tumbled from an all-time high after billion elon musk appeared on saturday night live.

that tesla and spacex boss had previously been among the coins biggest boosters. when asked on the show if it was quote a hussle, and character, musk applied that it was. it has increased 16,000% the past year. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. kathleen: still ahead, budget day cannot come fast enough for morrison government looking to focus voter attention on the strength of the recovery. we look ahead to the camera fiscal plant with the rbc susan on an up next to the dollar -- that canberra fiscal plan with rbc. and the outlook on jobs, look at the market. this is bloomberg. ♪

kathleen: the dollar has been moving in a tight range as the trading week gets underway in the asia-pacific after at 10 big low after friday's week u.s. jobs report. --the focus weak u.s. jobs report. now the focus shifts to inflation. now is between market analyst with ig markets. let's start with the jobs report, 260 thousand new jobs created in the u.s. in the last month. in normal times that would be a decent number. the market was expecting a million, for the second month in a row. the dollar weekend and-- weakened, a logical conclusion. are we going to see more this? >> i think so and i think we are seeing at downward trend in the dollar putting out anyway. since we saw that unwinding of the heavily short positioning in the u.s. dollar, it has more or less been downside story to see

yield compressed and that tenure stabilize over the last couple of weeks -- 10-year stabilize over last couple of weeks. it play somewhat to the notion of u.s. exceptionalism. for a while europe starts to look like it is getting its vaccine situation in order. that is obviously a good thing for the global growth story. there is also, now, handful of political implications from the jobs report that bring questions of what the next stimulus will look like from the biden administration. and whether there exist the same sort of impetus considering a lot of the weakness in the jobs report is being talked up to the fact that stimulus measures may have removed incentive for people to get into the workforce, how this shapes the political dynamics in the united states. and as result the fiscal policy

and another $3 trillion or four trying on suspending from the biden administration. the dollar now is looking on the back foot and the 90 level in the dollar index be interesting to watch as the week unfold. kathleen: it will take a while for this to play out. the unemployment checks people are focused on, if you can make as much by staying home, we respond to incentives. so in the meantime, does this put some fuel on the engine, for emerging-market currencies? >> yes, it certainly would though. you start looking at the rest of the world as a place you might put funds in a short to medium-term upside. everything looking very robust and the u.s. economy, what we called uplift in terms of jobs report in the longer run. especially now with the biden

administration and the market buys that narrative more. you look at the rest of the world out as an opportunity to buy in some areas. there are some areas where becoming [indiscernible] compared to the bullish sentiment at the start of the year. you do look at a world that now has financial conditions more accommodating and supportive of what markets were positioning for in the last few weeks. that lowers u.s. dollar the potential for lower bond yield as well, assisting further means emerging-market plays become a little more attractive again, as market step on the margins of more supportive financial conditions going forward. haidi: we have spoken to a lot of people and there is a theme and it comes to cash and capital preservation, more people saying they want to keep their powder dry to see what happens in the next few months. are you seeing that when it comes to what you are seeing with nominal bond yield is -- y ields?

>> absolutely at a step further in real yields, it is fascinating. the u.s. job reports throws an interesting spanner in the works, because we got a strong number and saw a push-up higher nominal yield and you would have seen pressure on stocks and asking as well, is the act -- equity market looking toppy here? the last couple of weeks real yields surging and commodity prices still going from new highs to new highs. that seems to be putting pressure, albeit the market pricing it as transitory, on inflation expectations. at the same time nominal yield more or less rising low for the time being and momentum dragged out of the stock market, especially if you look at diversions between large-cap stocks and, for example some big tech names, and small caps as well, which underperformed recently. we are seeing a deepening negative yield is still preference for bonds, gold, capital preservation. it does raise a question as to

whether the market is taking a step back and rest for the wild to see how things play out the next couple of months. i think that might be of burgeoning thing. the u.s. jobs report throws a spanner in the works and we saw that yield curve flattening little bit and expectations from rate hikes from the fed diminish and that was good for growth. it will be interesting to see if that lasts. there does seem to be a preference for capital preservation and investors moving to the sidelines at with a wait and see for the next few weeks or months how they play out. haidi: great to have you with us , analyst for ig markets. still to come, reports of a potential merger between two of australia's biggest casino operators. we got more details about the bid for crown by star entertainment. they have offered to .68 shares for each crown chair and made the offer close share ofaus $12

.50 48 and the confirmation from crown blackstone suite did steel for the takeover offer ofa crown tous $12.35, a 12% increase from the earlier bed and a 2% premium for that friday quote. -- the earlier bid and a 2% premium from the friday quote. we will get details and potential options when it comes to an exit plan for crown. this is bloomberg. ♪

haidi: a lot of developments this morning, when it comes to crown resorts, the troubled casino operator here in australia, offered a number of options as it remains under regulatory assault. a new option is on the table with star offering 2.68 share per crown chair, and a cash alternative proposal.

crown confirming the cash alternative is subject to a cap equal to 25% of total shares. crown saying, when it comes to the per-share offer from star, coming in at $12.50 australian per-share along with the 2.68 share each crown chair and cash alternative offer being made. we also heard blackstone sweetening its crown resorts offer, 4.2% from the previous offer. kathleen: let's get a quick check of business flash headlines. tiktok's owner it set its sights on china's e-commerce market rubbing and big-name sponsors that is that tries to take on alibaba. bytedance attempting to generate 180 $5 billion into domestic sales by 2022 driven by its to domestic platform. i bet on retail could help it surpass a $250 billion valuation as it prepares for one of the most highly anticipated ipo's.

public criticism and increased government scrutiny, the firm issued a statement of where it took cuts [indiscernible] a lot more coming up on daybreak asia and more on the increased crown offer.

haidi: as we have heard this morning, blackstone has increased by 4.2% on the last offer as it seeks to win control of the operators. paul allen joins us. this is really interesting. blackstone already had the 10%, but the proposal -- star proposal in this combined casino operating entity.

paul: yes, this is a fast-moving story. it is indicative and nonbinding, value of $12.50, pretty monist on the -- modest. crown has been unable to open the gaming rooms at the glittering new sydney casino on the waterfront here. the regulator refused the license after a damming inquiry found evidence of money laundering and other failures. there are more inquiries in other states the crown -- that crown operates in. sydney, brisbane, the gold coast. it is an elegant workaround for the regulatory problem. it will be a $12 billion national tourism and entertainment leader. >> we are showing sites of a striking building reaching so

high into the air with modern architecture. i want to ask about investors. if this merger is approved, what is in it for them? paul: it would remain listed on the asx. there are a number of options available for shareholders. there could be 2.6 h-shares per crown share and cash alternative which could be up to 25% the value of crown shares. star entertainment close friday was $3.91. star also says this would deliver a lot of cost savings to the tune of $150 million to $250 million per year. there's also a marketing and loyalty programs and other systems, and other players in the mix. blackstone also chasing crown with $8 billion in march and today has raised its offer to $12.35 a share. there's oaktree on the horizon as well with an offer of $3 billion for james taco's stake

as well. the battle is heating up and it has crown even naming a new ceo today, steve can -- steve mccann. if these possibilities play out, it will be interesting to see how long he stays there. >> it is an exciting story. thank you for telling us. paul allen from sydney. let's get first word news with vonnie quinn. >> thank you. bloomberg forces say the hackers who forced colonial to shut down the biggest u.s. gasoline priceline friday began a blitz against the company a day earlier. they are part of a cybercrime gang called dark side. last thursday they stole almost 100 bytes of data from the company's network in just two hours before locking systems with ransomware and demanding payment. iran is pushing for the banking industry to be given guaranteed and conclusive sanctions relief to restore nuclear deals with world powers.

the country's central bank has confirmed to bloomberg its involved to remove any sanctions. negotiations resumed in vienna friday on reviving the 2015 agreement. u.k. prime minister johnson has confirmed the next stage of lockdown easing in england will go ahead may 17 as planned. people will be allowed to stay overnight with friends all relations and indoor hot tablet he will be reopened. international travel may also resume. bill u.k. has given more than 50 million doses of x been and now has the lowest infection rates since september. the eu and india have agreed to do talks on a free-trade deal trying to strengthen economical operations in the face of an increasingly assertive china. the agreement was struck at a virtual summit between the eu leaders and india's prime minister narendra modi. it is aimed at rebooting relations as boosting cooperation across key fields including digitalization,

health, and climate change. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: we do have another alert on the bloomberg, watching into the start of trading in sydney. a merger to create two independent exclusive companies announced, saying the demerger when it comes to endeavor is preferable to all other options being considered. it will happen by distribution of endeavor shares and eligible shareholders will receive one endeavor share for every shell hurled thing -- shareholding woolworths group. they plan to spin off the drinks and hospitality business of endeavor in june. bloomberg intelligence suggesting that could offer significant re-rating opportunities given we have seen the likes of others go through the same kind of model. we will get you more details on

that of course as the story develops. kathleen: busy, busy, busy as the asian trading week gets underway. another big story. more than half a million people in the u.s. have officially died from covert. however, president biden's top medical advisor anthony fauci says the true toll is probably higher. >> we have said in the cdc has said all along that it is likely we are undercounting. the model says it is a significant amount, 900,000, that's a bit more than i would have thought the undercounting was, but sometimes the models are right online, sometimes they are a bit off. i think there's no doubt that we are and have been undercounting. kathleen: let's get some more from bloomberg deputy managing at pewter -- editor roz clancy. you can go in the hospital dying of cancer and you die of covid, and catch it -- you catch covid,

it is counted as a covid death. why is dr. fauci weighing in? reporter: that's quite right. the idea that people can die with covid, or of covid and how you slice that is a question for a lot of epidemiologists for years to come. dr. fauci was talking about a study from the university of washington, looking at excess deaths and mortality in the u.s. and the world, for the last 14 or 15 months and came up with a number that u.s. deaths are 57% higher than reported and the world as a whole, it doubled the official death toll. to the extent that they run these numbers through the epidemiological studies, a lot of pro -- there's a lot of validity to them. we know countries like mexico recently re-reported excess deaths way higher than they had been.

one thing that this study said is they specifically mentioned japan, egypt, and central asian countries saying that those countries' coronavirus debts could be 10 times officially reported numbers -- deaths could be 10 times officially reported numbers. it is quite sobering. just massive numbers reflecting on that many times in the last few months. haidi: in the meantime though, what are we seeing when it comes to the latest vaccination data, not just in the u.s., but also progress in the u.k.? reporter: it's interesting to see just two covid deaths reported in the u.k. today. that is a remarkable turnaround. it is a country that has really pushed ahead quickly with vaccinations over 53% there, having at least a first shot and more than one third fully vaccinated. as you said earlier, boris

johnson opening the u.k. up tomorrow to international travel. that is the message that officials here in the u.s. and in the u.k. are driving home, the vaccination message, getting through to groups that are resistant, and to that extent they seem to have some success. although the u.s., we know the pace of vaccinations is slowing kathleen: the news and india every week seems to go from bad to worst -- worse. what are we hearing now? reporter: new delhi has extended lockdowns for another week and strict controls this time to control this wave of covid. they were going to open up somewhat monday, but that is now extended through may 17. one thing anthony fauci said is he has spoken to officials, and about the need to break the cycle. we talked again in recent weeks about the indian economy and how

hard it is to close it down. it is not an easy thing. it looks like they are taking that somewhat under advisement. many countries have come to the fore with aid and vaccine materials the u.s. will be sending, but it seems like something needs to be done to break that vicious cycle. haidi: our bloomberg deputy managing editor, ros krasny. let's get calls ahead of the asian trading day. sophie kamaruddin is in hong kong. china, india and brazil reporting inflation. sophie: and with that we have several analysts on either side of the debate. we were look for clues on what could drive monetary conditions and em's last month. we had the index jumping to a 2008 hi, indicating that markets may be underestimating the jump

in price pressures and potentially repercussions on the economic recovery in the e.m. space. we have pimco staying on the growth story with e.m. assets looking interesting on the reopening scene. kathleen: that's a very powerful part of the story. let's look at this rally, a key factor in the inflation debate. how did asian energy stocks perform amidst this oil rally? sophie: we have seen them push higher in commodity exposure when it comes to commodities in asia, brent jumping up to 30% this year. asian energy stocks up about 7%, indicating how the energy sector is weighted more towards oil buyers and refiners instead of producers. i want to highlight how material stocks have been faring in asia compared to energy stocks. they are powering up on the commodities rally, up 14.2% year-to-date.

bloomberg intelligence expecting continued leadership for materials due in part to the u.s. infrastructure spillover and robust metals and the commodities super cycle folks are talking about. haidi: coming up next, the budget day cannot come fast enough for the morrison government, looking on voter retention on the strength of the recovery. su-lin ong is joining us. this is bloomberg. ♪

haidi: let's take a look ahead at the day when it comes to australia and new zealand. some eco-data, retail sales adjusted for inflation, it contracted in the first quarter and we will get consumer confidence in the month of april. on the corporate front, for your earnings guidance, slashed the four year outlook as china sales falter. down from almost $2 billion late last year. treasurer says he will deliver a jobs budget tuesday that is expected to extend tax breaks and other fiscal measures to push the economy towards maximum employment.

australia's budget comes as sydney extends virus restrictions and the prime minister says he sees no appetite to open the nation's borders. for more analysis, we are joined by su-lin ong. given the positive news we've had from the trajectory of the economic recovery and of the jobs market as well as this commodities super second -- cycle that's benefiting us, how much is really needed in this budget? >> i think what we will see is a couple key messages from this budget. the recovery has been much stronger, particularly in the labor market. those perimeter changes will deliver a much better budgetary position than we thought even a few months ago and definitely compared to the last budget update in december. the underlying budgetary position will be improving. it's a question of the extent of the improvement. it should be reasonably substantial this fiscal year and

next. i think the question about how much more stimulus we need when the economy is doing fairly well i think is part of the shift and fiscal strategy going on at the moment. it is really all about supporting this recovery, getting the full employment and creating as many jobs as we can to get the unemployment rate lower. the narrative that is emerging is around continuing support from the fiscal side to get to that jobs improvement. really any thoughts of budget repair and fiscal austerity are well and truly put to one side. to a degree, it is not surprising as we come closer to an election that is likely in the next 12 months. we have to remember budgets are always political documents. haidi: they are indeed. also political is this idea of the insular nature of the recovery. how worrying is it for you that

we are potentially not seeing a reopening of borders and flow of people and tourism, a true recovery of services, until sometime next year or even 2023? >> from a broad macro perspective, there is some rationale in this. when we look at tourism in particular, the number that surprised investors is more australians go offshore and spend compared to those who come to estrella to visit. when you close the borders, you effectively trap australians within the country and trap the funds. we estimate that is worth an additional $5 billion to $6 billion per quarter, about 1% of gdp annually, and all of that trap in australia goes toward domestic expenditure, whether it's motor vehicles, domestic holidays, some of that saved. we can see that in the strength of consumption and that has been an important feature in the recovery and strength of the

recovery today. from a broad macro perspective, it has probably helped in activity. clearly from a bigger perspective, it will be a headwind. we are seeing shortages in terms of labor and skills and less skills. we know population growth is important for australia longer-term and a key contributor to productivity and sustainable longer run growth so there will be some headwind if we keep border closed indefinitely paired but at least for now, it is still contributing to the stronger recovery. kathleen: just to think back a year and a half ago, i don't think it is much longer than that, morrison was still, and his whole team, very much pro-surplus on spending more money. is this a permanent change do you think, that the need to spend and need to go from surplus to deficit, to fight

back against the damage from the pandemic, do you think that shifted the party in a way that they will be more friendly towards spending towards programs that have a broader agenda of growth? >> absolutely. i think there's no doubt there is a material shift going on in terms of the long run fiscal strategy and it's not unique to australia. when you look around the globe, the increasing emphasis on getting much stronger labor markets, not just full employment, but broader measures of stronger employment, whether reducing the underemployment rate or the rate of particular key cohorts, especially those that are disadvantaged. i think this is part of a global broader shift with a similar rhetoric from central bankers as well. it's important to focus on a stronger labor market pose pandemic. in australia, you are right to point out that to some degree it goes against the dna of the

liberal national party, that it has prided itself on being responsible economic managers, which usually meant keeping debt and deficit under control. but i think this shift we are seeing in fiscal policy, a recalibration for recovery, and stronger labor markets is here to stay. i guess at this juncture, when we think about it, what is the risk here? the aim of trying to get much stronger labor markets to lift growth over the medium-term is admirable, particularly when inflation is so low. kathleen: thank you so much, getting rigid -- getting us ready for the budget and longer-term. chief economist at rbc capital markets. the minneapolis fed president neel kashkari says the labor market strengthens support for continued support. he emphasized economic recovery

still has a long way to go. ♪ kathleen:kathleen: ok, we are having a bit of a technical difficulty with the sound from fed president neel kashkari. more on the economic outlook in asia had. the center of oxford economics joins us. plus, some snp global ratings. plenty more ahead. this is bloomberg. ♪

>> it's an unstoppable financial vehicle that will take over the world. so it's a hussle? it is a hussle. kathleen: elon musk in his saturday night live appearance talking about those coin -- dogecoin. prices plunged as he called it a hussle. this was quite an appearance.a lot of people said that this was not a good idea, a ceo will go on tv. first of all, if you watch any of it, i would urge our viewers

if they haven't, you can go online and watch it easily. he handled himself very well. his mom, his glamorous, x supermodel mother was there, who was poised was fantastic. ando chicoine -- dogecoin, that was a skit, it was comedy. and boy oh boy, those people took it as a chance. haidi: i remember when it was just a joke. who can resist that dopey shiba inu face? doubling down, spacex with a mission to the moon in 2022 with the satellite used for space research has been paid for entirely in dogecoin. i have to say it, is this the first doge in space?

kathleen: i love it. elon musk in his opening monologue was saying how, i get so much criticism, and i did that podcast where i smoked a joint, and ever since people say "he smokes joints, he goes on podcasts," but he said, i'm also helping bring electric cars to the world, and i will send people in a rocket to mars.did you really think i would just be a chill guy? he really handled it well. haidi: it is interesting. such a cult of personality. i'm really curious, as we begin to see in the markets, preservation and the incoming cloud of inflation, what happened to the other assets in

particular the more french ones like dogecoin? we are getting you caught up with the other business headlines. shares plummeted after it issued a plan -- profit warning. the milk market has/the full you -- year revenue forecast, down from a high of two b and dollars qe late last year. the stockist among the largest on new zealand's markets but has plunged for more than 21 qe dollars last year to just over six dollars a share today. the shell had expressions -- expects -- the dutch major along with european have aim to be the zero emissions company by the end of the century. coming up in the next hour, market reaction to the ransom

liar --ransomware attack. today's views on the commodities super cycle and iron ore. plenty more to come next. this is bloomberg. ♪

haidi: good morning, i'm haidi stroud-watts in sydney, counting down to asia's market open. kathleen: i'm kathleen hays in new york. welcome to "daybreak asia." this hour, no one in situ a -- site to a shutdown of the biggest u.s. gasoline pipeline. the crippling cyberattacks just ahead of the