♪

haidi: haidi:. good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: good evening from bloomberg's world headquarters in new york, i am shery ahn. we are watching 10-year yields ended two year deepening its curve inversion. haidi: and chinese president xi jinping is welcome to kazakhstan on his first foreign trip in nearly 1000 days. shery: u.s. futures slightly higher at the moment. we had a late-day rebound on the s&p 500, swinging between gains and losses throughout the session. perhaps some anxiety easing over inflation data showing that it fell for a second consecutive month. watching treasury yields closely as well. it was a mixed picture.

the dollar in fact, reversing the strength we saw after the u.s. cpi numbers. we continue to watch crude prices, we had some easing in prices, but new york prices were actually higher. there is a little bit of optimism that we could see demand recovering. for example, the city of chengdu in china easing lockdowns despite the fact that the global demand outlook was lowered by the i.a.e.a.. . the optimism was felt across the world markets. take a look at yields, a mixed picture in the treasury space, short-end yields are rising higher. 10-year yield fell. you are seeing a deeper impression in the curve as we continue to get inflation concerns, concerns about potentially more-hawkish fed. real yields also contributed -- also continue to rise, the 5's, the 10's and the 30

year for all higher. haidi: let's look at the picture when it comes to futures. essentially flat across major indices. take a look at australian futures. the aussie dollar is holding steady. we saw a pullback in the bloomberg dollar index from last week's highs, but we are still under $.68 for trading on the aussie. kiwi stocks are up 0.2%. and we saw a little bit more strengthening on the dollar-yen, part of the moves we saw in the dollar. but we saw various points where the greenback also rebounded. playing out that resilience in the u.s. currency, given not much has changed when it comes to the inflation and the fed outlook. do we see 75 or 100 points for

. but we know that this is a market that wants to rally. look at the dip buying situation even as we see more indicators of capitulation. retail investors really snapped up the stock-focused etfs, the megacap tech companies that were sold off so badly in the previous session. the worst day for u.s. equity markets since the covid-19 pandemic. we saw investors flocking to their favorite assets. the s&p 500 etf, stocks like apple. but there are some warnings saying that these capitulation indicators mean the likelihood of retail capitulation will increase significantly should we see equities retest the lows that we saw in june. shery: cathie wood of ark investment management, we saw some of the biggest holdings take a hit, given we are seeing the punishment on the market, speculative corners have dragged

our -- have dragged ark almost 20% lower in 2022. there largest buy was a video streaming company, roku. haidi: garfield reynolds joins us now. i feel like you're going to tell us i told you so, because here we go again. garfield: here we go again. it helps with the dip because we are in the quiet period before the fomc. central bankers cannot be there telling as how concerned they are by cpi readings and whether or not the ppi that came in weaker has much of an impact. it is interesting how ready the market was to jump on the apparent signs of a weaker inflation print, when most of the indicators that underpinned the upside surprise in cpi are not very much connected to the producer prices.

you think services, rents, food prices, those are less obviously tied than if it was manufacturing goods that were leading the charge up in consumer prices. so we have a situation where the market is determined to believe that the market is going to team inflation rapidly, and therefore, every jumbo rate hike brings us closer to what the markets are still pricing in, which is rate cut to the end of exterior. -- which is rate cuts by the end of next year. people expect the fed to cut by next year or worst-case scenario, not reason anymore. so why not come in and buy? your only problem will be if inflation ends up stickier than the market is expecting in the

fed ends up doing exactly what chair powell said at jackson hole, taking the interest rate up higher than people are expecting, and keeping it there. there have been signs from the fed saying, we will not be cutting rates next year. shery: shery: in those concerns about a potential hard landing are being seen in the treasury space. the curve continues to be inverted, going deeper into that territory. garfield: very much so. although it is not a good recession indicator, the 2's and 30's curve inverting by the most since the year 2000 does speak to that outlook, the expectation that inflation is going to cool. what else would you purchase 30 year bonds when cpi is at 8% unless you think inflation is going to come down rapidly? but it speaks to serious concerns in the bond market about the growth outlook. after all, it is hard to get

inflation down unless growth slows. . if you have a 30 year yield that far under the 2-year yield, that is telling you that the bond market is at least open to the possibility of a very serious and sustained slowdown. how that works, how that backs here case for buying tech stocks when a lot of companies have been saying that they see a challenging 2023 ahead, that is what has me, i would say puzzled, but stocks have been doing this for the last couple of years. it is more just to that this is the new normal, so to speak, for equities. haidi: and the new normal for the yen. we saw the rebound. tell us about the so-called rates check by the boj and whether market is seeing this as a potential sign of intervention. garfield: it is ratcheting up. i always forget which way it goes, devcon two to devcon

three, or the other way around, whichever one is raising the level of concern. boj calls trading desks and lets them know it is the boj calling and says, what is your rate for the yen? so that gives banks a heads up that the boj is interested and that technically it could buy. they could say, we will hit that . so that makes it more immanent that the boj could intervene. that would be on behalf of the ministry of finance, but it puts intervention a step closer, raises the intensity from just jawboning. we have them saying we will take all steps necessary. this is taking the safety off as far as intervention goes and part of why the yen came

back from the 145 level which does seem to be a line in the sand for the japanese. there was a lot of jawboning when it came close. and again, jawboning plus array checks this week. it will be a brief set of fx traders who go to push the yen passed 145, at least until we find out what the fomc is doing and saying in one weeks time. shery: mliv contributor garfield reynolds there. we have an alert on the bloomberg. aig has priced its ipo at $21 per share, that would be the little end on the range. at the high end of the range, this listing was supposed to be the biggest ipo this year in the u.s.. of course, corebridge is one of the largest providers of

retirement financial products and reported $6.4 billion in profit in the past six months, of course after getting burned by the high-growth tech listings. we have seen a drought of ipo's. we could see a renewal, with aig's life insurance unit pricing at $21 a share. price hikes are overshadowing the revamped known as the march for ethereum. for more, let's bring in our bloomberg quint reporter. how are we setting up for the merge? olga: it'll happen in about seven hours. in four hours or so, there are various geely parties starting, so there is a lot of excitement in the crypto community for this event. haidi: why is there such a big deal? olga: the merge is basically changing the way that ethereum, the most important commercial

highway in crypto, functions. ethereum is where there are over 3000 different distributed apps, crypto games, it moves bit of dollars in value daily and it will change the way it orders transactions to become much more energy efficient. so this change is expected to essentially attract a whole new category of investors and developers who may be stayed on the sidelines because of ethereum's high energy usage. and it also paves the way for additional changes that will make ethereum just a better network. shery: we are hearing that crypto firms will be pausing actively during the merge. could we see other disruptions? olga: absolutely. the reason why so many exchanges and distributed apps our pausing withdrawal and deposit activity as well as some margin-related

activities, is because there could be some disruptions. . as we have seen from past software upgrades, have been glitches in the past and there could be all kinds of bugs that could go on for a number of hours or even weeks or months, so i think a lot of firms are just trying to be careful and protect their users. haidi: our bloomberg quint reporter, olga kharif there. let's get over to vonnie quinn with the first word headlines. vonnie: thank you and good morning. amtrak has canceled most long distance trains as talks continue over international freight real strike. the stoppage by 125,000 workers will be the largest of its kind since 1992, potentially costing the economy to billion dollars a day. the white house says the unions and the railroads will continue to negotiate in good faith.

the w.h.o. says the world is in breach of beating the covid-19 pandemic. . the organization says fewer deaths were linked to covid globally last week than at any time since march of 2020 when the pandemic was declared. since then, nearly 6.5 million people have died. typhoon muifa has made two land falls on china's heavily populated eastern coast, bringing strong winds and heavy rains to areas around shanghai. major container ports suspended operations, along with several lng import terminals. china. issued the highest ever typhoon warning, the first time it has done so this year. one court has issued an arrest word for terra co-founder do kwon and others. persecutors say the individuals are currently in single -- in singapore. do kwon is the founder of the terraform labs ecosystem.

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, more on the much awaited merge in ethereum with sartori research, and where they see short and long-term opportunities in crypto. next, nancy tengler tells us why more government spending will add to pressure on inflation. this is bloomberg. ♪

shery: u.s. futures are marginally higher in the asian session. we are swinging between gains and losses throughout the day but u.s. stocks managed to hold onto gains. we are still awaiting the retail sales numbers, and the

university of michigan numbers this week. we had a very strong inflation number in the previous session. let's bring in nancy tengler, ceo and cio at laffer tengler investments. we are headed towards the fomc decision and there seems to be perhaps more odds that the fed could come up with a 100-basis-point rate hike. with a few days to go, how do you position in order to hedge for the level of volatility that we could end up seeing? nancy: there is a couple of ways you hedge, one is through the portfolio and the other is around asset allocation. within our strategy, our equity strategies, we have already been positioning and putting defensive names in the portfolio. and that began last fall because we thought we were in an economic slowdown and we believed the fed would have to raise rates given inflation.

we wrote a piece in the summer of last year where we said the fed was risking turning a we thought inflation was then, into a wildfire and indeed that happened. so we position for that. the fed raised rates. the bond and equity markets did a lot of the heavy lifting for the fed, because they were still accommodative until march. . now, i think you want to begin to at risk to your portfolio. i think that despite the cpi number we got the day before yesterday, we are approaching or we are at peak inflation, and historically it has been appropriate and good for your portfolio if you added to equities when we hit deconfliction. shery: how much are we factoring in the burden of the government as well? we keep talking about a potentially hawkish fed.

on this chart, you can see a 1% increase in debt payments that the government needs to make. it really adds a total cost of $38 billion. that is significant, more than what we saw during the volcker era. nancy: exactly. during the volcker era, debt to gdp was only 39%. now we are at 100%. so you need to look at it differently. add to that the ceo estimates, just to service the budget deficit, it will be an issuance of $1 trillion in treasuries, and then qt will result in another 500 billion. we were at 500 billion before the pandemic. now we are closer to 1.5. so this has all sorts of implications for bond volatility and money supply, yet congress continues to spend with impunity. we have spent trillions since covid. at some point that'll come back to the economy and be an inflationary force. haidi: i am looking at the

stocks you have the largest holdings of and there is tech, financials, defense, consumer telecoms. can you tie this together in terms of the narrative that you like about each of these companies? nancy: i sure can. the theme in our portfolio, one is that we want to own reliable growers, because as growth becomes more scarce in the economy, investors will turn their attention to companies that deliver reliable growth. one of those names is microsoft. this is a company that delivered 38% growth in the cloud, they have dividend growth policy that has resulted in almost 10% dividend growth. it used to be a good hedge against inflation and hope it will be again soon. they are, by every cio survey, the beneficiary of majority of spending. we didn't know russia was going

to invade ukraine, but when you that they were reliable growers. they have very strong dividend policies. dividend growth is very important in an inflationary environment, and in a recessionary environment, so we added to those names. for insurance companies, we selected chubb as one of our holdings, and in that list is also johnson & johnson, those are the kinds of names. you don't want to purchase the highest yielding stocks, you want companies that can grow their dividends the fastest. . the trailing one-year dividend growth in our portfolio is 20%. haidi: nancy, always great to have been with us, ceo and cio at laffer tengler investments. more to come on "daybreak: australia." this is bloomberg. ♪

shery: a looming strike by u.s. railroad workers is starting to roil the commodity markets, raising concerns about higher prices from natural gas to corn. su keenan is here. we have already seen a natural gas prices soar today. su: yes, big moves in commodities. if there is a strike, it raises the question of added cost of moving coal and corn. the concern that there will be a disruption in supply is causing the gas to serve. it was up 11% today. it settled with a gain of 10%. you can already see the trajectory of the week as there has been concern about the looming strike. the european natural gas storage just adding to the momentum and putting additional price pressure on the gas. again, the concern is that coal delivery will be disrupted. that generates 22% of all u.s.

electricity it could cause power generators rely more heavily on a really tight supplies of natural gas. and you have corn noted by barge to be delivered to the gulf coast, it already jumped to the premium, barge deliveries jumped 5%, so there is concern that corn could be moving more by boat in the weeks ahead if the strike moves forward. the biden administration is involved to try to avert it. amtrak is already talking about halting some of its longer-term railroad lines in anticipation of the strike. the deadline is friday, but shipment would stop on friday if there is no aversion. haidi: how much worse could things get? su: the estimate is that if we have a strike, it could cost $2 billion a day to the u.s., already adding concerns into

inflation. in the bloomberg, you can see that inflation is the number one concern now. it is pressuring the fed to now look at hiking rates even higher than anyone anticipated. so the inflation pressure is the number one concern. would it make things worse? the good news is many close to the situation say the strike is unlikely to last long term, two days might be the maximum. and again, the biden administration is working hard to reverse that. if you look at commodities, natural gas is coming down. nymex crude oil and brent crude are in the green. oil climbing on optimism that demand prospects in china could brighten. even though the iaea sees a significant drop in demand due to the china lockdown, and that is informing their view that global oil consumption will be a bit less than anticipated.

although they still anticipate a 2 billion barrel a day increase. and finally, oil hit its lowest level since january earlier this month and it has been coming down, back to key levels. shery: not surprising the numbers from the iea, given the china lockdown and spreading starting to fall. su keenan, thank you. plenty more to come on "daybreak: australia." this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts.

saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 per month on the nation's most reliable 5g network. they can even save you hundreds a year on your wireless bill over t-mobile, at&t, and verizon. wow. i can do better! yes you can! i can do better, too! now you really can do better! switch to the fastest mobile service - xfinity mobile. now with the best price on two lines of unlimited. just $30 a line.

shery: chinese president xi be

and russian leader vladimir putin said to meet face-to-face for the first time since the ukrainian war began, and the key question seems to be whether beijing will offer military aid. for more, let's bring in chief north asia correspondent stephen engle in hong kong. we saw a pledge for a no-limit ownership earlier this year, but will that included military offer? stephen: that would be a significant elevation in beijing 's support of moscow. obviously any type of military aid could potentially attract sanctions from the united states, and beijing has walked the tightrope obviously since the february meeting between xi jinping and vladimir putin when they signed the no-limits partnership. but military aid would be a whole new bob good essentially, beijing, at least initially, it

balanced the support for russia well also not necessarily directly endorsing the war in ukraine. well, things have changed dramatically. moscow and which includes a war there has taken a number of drastic turn for the worse for vladimir putin of late, a number of battlefield defeats. and this meeting could potentially be a venue for vladimir putin to ask in-person from xi jinping for military aid, whether it is troops or hardware or financial aid to support moscow's war in ukraine. many experts say it is highly unlikely. highly unlikely that xi jinping will necessarily agree, because, again, there is a risk of further sanctions against beijing. as well diplomatically, at home domestically, what would that achieved for xi jinping ahead of

that critical party congress in the months' time? so there is potentially a lot at stake for vladimir putin. for xi jinping, this is his opportunity as he tours through central asia as he has been at home for 970 days and has not traveled abroad, his first trip in nearly 1000 days. it is his opportunity to show that he is back on the world stage. he was in kazakhstan yesterday where he launched his belt and road initiative, kickstarting his third-term tour in office. uzbekistan is the next stop. he will not necessarily bow down to demands of vladimir putin. haidi: our chief north asia correspondent stephen engle there with the latest. australia is expected to avoid recession even as its top

trading partner china is slowing sharply. let's bring in our economics reporter here in sydney. seems like the lucky country will have that stretch a little bit longer. . what is making australia different in this environment? swati: good morning. australia has found itself in this unique position, one of the rare beneficiaries of the fallout of russia's invasion into ukraine. australia is one of the largest exporters of coal, iron ore and lng and we are benefiting from the surging prices. at the same time, the australian dollar has not risen, it has averaged around $.69. that is benefiting all exports and bringing in a huge amount of money into the government coffers, which is great for our budget position as well. also, monetary policy is not

expected to be as aggressive as in the u.s.. these are the two major reasons why australia is likely to avoid a recession. shery: what is the major risk for australia that could derail this path? sweaty fish the major risk that everybody has their eyes on is the property market. we are seeing already a very rapid contraction in our home prices, particularly in sydney, which is the bellwether market for australia. if there is a sharper projection of more than 20% or 30% fall where people are forced to distress-cell or where the default -- to distress stephen: -sell, or default on their mortgage, that would be bad. shery: swati pandey there with the latest. south korea's top negotiator

says he is hopeful of the resolution with the u.s. in a dispute over vehicle subsidies. discussions beginning on friday. >> most governments agreed on the system to address the situation and to rapidly resolve the situation. so, this time, i agreed with the ambassador to establish a bilateral engagement channel. working level discussions will start actually this friday. both governments will candidly discuss all possible proposals and we will see how to solve the problem. >> could those proposals include some waiver for korean carmakers who are working very hard to build plants in the u.s., just not in time?

>> i cannot prejudge any decision, but we are considering all possible and feasible solutions. the problem is the legal provision in the law, which is, realistically speaking, difficult to amend. because it was just enacted into law. but including the possibility of amending the current provision, we will try to find out all of the feasible options, including the guidance or the implementing of systems, as well as the amending of the final law. >> would it be ok to say that it is good to be hopeful about progress going forth? >> i hope so.

both governments will try our best to solve the problems as possible. nowadays the biggest concern is how to maintain and strengthen the trust between korea and the u.s., because of the ira. we have many things to do in the future. again, as a mentioned, this kind of thing can happen, but there are more important thing is how to address the situation. both governments can rectify the problem. >> how worried are you about the growing rivalry between the u.s. and china, given that korea is somewhat sandwiched between those two countries? >> yes, the tension between the u.s. and china continues to grow , and we also have lots of concerns about the situation in

taiwan. particularly after our industry witnessed what was happening after the ukraine situation gets worse and worse, we have lots of concern about the potential situation in this area, this part of the world. mainly the taiwan situation is one example, there may be numerous other potential uncertainty. that is why we try to establish and stabilize the innocuous commercial relationship with china as well. >> do you worry that this could somehow undermine or weaken the industry competitiveness of these factories? >> we need for investment in korea, especially in the high-tech industry sector. we need capital, talent, and

technology. that is why the trade ministry is trying our best to make korea the asian investment hub. because of the situation, like it or not, a lot of companies will have to leave china. but they cannot leave completely the asian market. we hope that some of those companies can come to korea, and here we try to provide a safer and more stable platform. haidi: south korean trade minister speaking there exclusively with bloomberg in seoul. let's get you the first word news with vonnie quinn.

vonnie: a u.s. senate panel approved a bill to boost ties with taiwan and send military aid which could change decades of white house policy. the biden administration says current u.s. policy is still working, and the legislation would take policy-making out of the president's hands. the international energy agency says china's demand for oil will drop the most in three decades this year as covid lockdowns and property prices weigh on growth. demand falling by 20,000 barrels a day, or 2.7%. that has led the iea to trim its outlook for global crude consumption to an increase of $2 billion a day, in sweden, the prime minister is conceding defeat and says she will resign on early thursday. the announcement comes as the opposition, led jimmy ackerson, looks set to score a victory in one of the closest elections ever in the largest nordic country.

magdalena andersson became sweden's first female prime minister a year ago. sweeping sanctions against russia have cost the country hundreds of billions of dollars, according to an internal finance ministry document which found significant hit to the stock market and foreign exchange reserves frozen by the restrictions. russian president vladimir putin gave officials an upbeat outlook on monday, saying the nation is headed for a growth trajectory. 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: the coffin of queen elizabeth the coffin of queen elizabeth ii has arrived in westminster hall to begin four days of lying in the state. thousands lined the street to watch the procession. bloomberg's lizzie borden has more. >> we have just witnessed one of the most poignant moments in this period of national mourning

for queen elizabeth ii. her coffin proceeded from buckingham palace to the palace of westminster via a parade in whitehall, followed on foot by her children and grandchildren, evoking the image of when prince harry -- of when the princes walked behind the carpet of their mother over 20 years ago. now the coffin lies in state at westminster hall. hundreds of thousands of members of the public of all ages, classes and nationalities are expected to file past it to show their respects, despite the rain last night. they queued for hours and hours. the warning is that they will wait for 30 hours, but it is a mark of the public's respect and affection for elizabeth the great, as former prime minister boris johnson called her. it is unlikely that we will see in our lifetimes a british monarch reign so long.

it is unlikely that we have seen an outpouring of national grief on this scale before. it is history. lizzy burden, bloomberg news, westminster. haidi: next, we are counting down to the ethereum merch. satori research joins us to discuss just how big the stakes are. this is bloomberg. ♪

>> the ethereum merge is a really big story. it is finally here, and that gives energy to the space. >> growing proof of stake is a huge step for ethereum. it makes the network more secure, it is using less energy and ready to be much more scalable. >> ethereum's energy and consumption will go down so it will go from being a big problem to basically not a problem at all. >> whereby in the past you could hold your ethereum and use it but if you were an institution, now you can steak it and earn yield on it and that will definitely be a turning point for ethereum. >> we have been much more excited about ethereum in the last month or two than bitcoin. >> i am personally really in love with ethereum. >> i don't necessarily think proof-of-stake is a great thing in the short run.

>> what i care about is that the merge is successful and that this upgrade does not have a technical glitch. >> it will be as smooth as if your iphone or laptop has operated the operating system -- has upgraded its operating system overnight. >> wake me up when the transition happens. shery: some of our guests' thoughts across bloomberg television on the upcoming ethereum merge. we are seeing a rebound in it quinn and ethereum, even ether wavered. bitcoin lost 10% in the last two sessions. of course it is about the tightening in monetary stimulus around the world, the easy cash being gone and that is affecting crypto-currencies. not only crypto, but really risk assets. but there has been a lot of enthusiasm about the merge, the system transferring to proof-of-stake. we will continue to what the crypto firms that are pausing

activity around that process. haidi: let's bring in our next guest, he says the merge provides arbitrage opportunities in the short-term. with us is the ceo of crypto investment firm satori research. it is much-hyped. how much of this is already priced into crypto asset prices, and what are these arbitrage opportunities that you are seeing? teong: thank you for having me on the shore this morning. there is a lot of opportunities for the market. the market is pricing in a successful marriage in a few hours. arbitrage opportunities in the market are dislocations between future markets, physical and other contracts including ethereum and etc. the last 48 hours have been a great time for us where we can see all of these different dislocations and try to profit from all of these market

mispricing. for the time being, in the short term we will still continue to have some mispricing until after the merge. if the merge is successful, then it will be set for traders and investors alike. haidi: in the current market environment where you see a lot of asset classes that are seen as more speculative or risky or alternative, if you will, being dumped, do you think that institutional investors are still looking at the esg aspect is a reason not to get into crypto? teong: i think ethereum is finally turning green. for institutional investors, especially those that are esg-conscious, they will use this as an opportunity to perhaps dip their toes back into the blockchain, into the tokens, including ethereum. bearing in mind that after this merge, ethereum's energy consumption will be reduced by

99.95%. so, investors can now reconsider ethereum as an investment asset now that its energy consumption has dropped to a fraction of what it used to be. remember that the esg ecosystem, that market is estimated to be worth an approximately $4 trillion, and by 2025, it is expected to surge to about $15 trillion, so there is a lot of opportunities that this ethereum merge is successfully deployed. shery: how much pressure will this put on proof-of-work, notably bitcoin, for them to switch as well? teong: teong: the jury is still out. this has been an age-old debate where proof-of-stake and proof-of-work, which it better. i am not a bit quite maximalist

nor am i an ethereum maximalist. i think in one or two years, if ethereum loses to be more secure and diversified and decentralized enough, i think they will put a lot of pressure on bitcoin. however, i think bitcoin being the first crypto, i think it will still have a role to play, regardless of how successful ethereum becomes after this merge. shery: long-term, post-merge, how does this help the economics of the crypto world? teong: i think if this merge is successful, ethereum co. continue to trade higher vis-a-vis bitcoin. the thing is ethereum has smart contracts, it has a utility function, whereas bitcoin functions more as a store of value. we could argue whether it is still a store of value are not given its fluctuation, but it has a role to play. however, ethereum, once it becomes faster and cheaper not

at this stage, but in the next few years to come, then it will probably be -- it has more utility function that will help the ecosystem to grow, rather than just as a medium of payment. haidi: great to have you with us on the big day for crypto watchers teong hng , ceo at satori research. let's get you the latest when it comes to the gauge of new zealand's gauge of health. gdp number your of your beating expectations of no change, coming in up 0.4%. also extending from the 1.2% gain in the first quarter. quarter on quarter gdp growth is one point 7%. a strong beat over expectations of 1%, and bouncing back from the previous period construction of -- contraction of 0.2%.

we do see in terms of the components adding to that gain, pretty strong construction activity is likely to be the key driver. we also saw increased international tourism as the economy and borders reopened. but still some weakness in manufacturing and retail. all in all it is unlikely to move the needle, when it comes to the rbnz from further tightening as inflation grows. we continue to see the reserve bank of new zealand pushing forward, expecting another 50-basis point hike in october, and more hikes after that. many more to come here on "daybreak: australia." this is bloomberg. ♪

shery: here is a quick check of the latest business flash founders. -- business flash headlines. softbank founder messiah she sign is said to be reviving discussions to start a third division fund. sources say he has raised billions of dollars in cash recently, and he sees another startup fund as one of his possible priorities for the money. google is making cuts to area 120, it's in-house incubator for new projects. the tech giant is aiming to control spending and working to improve efficiency as ad budgets tighten. the affected workers will need to find new roles at google

within a certain period of time or lose their jobs. this company from hong kong saw a record 312 percent surge in new york as frenzied buying added $27 billion in market value. the surge triggered multiple trading halts. amtd has seen its stock rocket since listing two months ago. at one point it was the most valuable listed companies in the world, ahead of goldman sachs. that's it for "daybreak: australia." we have "daybreak: asia" next. we are seeing a bit of upside in futures trading at the moment. this is bloomberg. ♪

millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today.

♪