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tv   Bloomberg Daybreak Australia  Bloomberg  May 21, 2023 6:00pm-7:00pm EDT

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>> a very good morning and welcome to deborah kostroun.
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-- welcome to daybreak australia. >> counting down to the major market opens. >> i'm kathleen hays from the headquarters in new york. beijing has authorized the purchase of microchips, the latest salvo in a -- the escalating tensions over micro conductors. >> and negotiators resumed talks in d.c. over the debt ceiling. >> markets are bracing for even more volatility as that debt deal seems elusive. and while, top investors to save japanese stocks are the place to be this year. get a quick look at wall street because the s&p 500 had a number of high and it stopped short on friday when president biden had to get on that plane without striking any kind of deal. not even an outline. that is when the s&p ended up a tent lower than the nasdaq.
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you can see on the future site we still have read on the screen and there's that sense that if there is no debt deal why would we buy equities. this also had an impact on the bond market and any concern about a debt ceiling rates not getting past means a default potentially happens and that could hit the global economy. that is one thing that drove bond yields higher on friday, and you can see the 10 year yield looked like, the price action is on the negative side right now. on friday, the yield on the 10 year got up to 2.7%, on the to you -- two-year 2.5%, the highest since late march. dollar opening mixed in sydney, a lot of uncertainty. investors are keeping their currency trades close to the vest right now. in the crude oil market we have the oil up at $71 and $.69, around $.14 there, up, it was
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much higher on friday. there might be more hope on the debt deal with oil. and then refinery demand from asia is expected to tighten supply, that is another factor there. and one more thing to throw in, jay powell seeming to join the skip club on the june rate hike. he was giving a speech and he said the policy is restrictive and he is concerned about the lack so he seems to be joining that cap saying that we might pause. not necessarily ending but pausing. >> china has delivered the latest salvo in its semiconductor war. borrowing purchases of microchips after a failed cybersecurity review. let's bring in our top stories today. our chief north asia correspondence -- correspondent. once the latest in this ever
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escalating back and forth and we also had some comments about how to deal with beijing at the g7 over the weekend. >> there were 70 things happening at the g7 and not necessarily tied to the conference. so many things were happening on the sidelines, which i participated in in dashcam. president zelenskyy was there and there was a biden press conference where they talked at length about china. but again there were those debt in past talks which overshadowed everything. on the sidelines, the prime minister bring in those chipmakers, intel, amd, samsung, trying to de-risk the supply chain, there was a terminology that i heard a lot when it came to china -- it came to china. de-risking but not decoupling.
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but the moves are afoot to diversify the supply chain in advanced semiconductors. we had the prime minister offering up one and a half billion dollars to get macron to build out capacity at the advanced chipmaking equipment in his hometown, hiroshima. that was a recurring theme. simultaneously, you have state meeting in china saying that this is the conclusion to the cybersecurity review it launched a month ago into micron technology's and they have ruled that there are some security risks posed by the import of micron memory chips into china and they are advising the government through state media and into state infrastructure to not use microchips. it is another salvo in this ongoing rift between china and the united states, that the u.s. is lobbying hard within the g7
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to come on board as well with some of these restrictions the by the administration has proposed on china. that being said, item is saying that he expects china relations to improve in the coming days. >> that was a nice surprise to hear that from them, and we know that zelenskyy showed up to get people on board with ukraine and people in particular, indonesia, india and brazil, did russia become a bigger issue at the g7? >> russia was front and center. there was story one a and one b, china being a or b depending on the meeting. russia was the of one. when zelenskyy showing up saturday night and then giving that speech yesterday and meeting just about with
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everyone, it was a bit of a hug fest if you will between g7 leaders and zelenskyy. the key challenge for g7 leaders who are already pre-much in unison -- pretty much in unison on the communique with russia's quote" illegal war was to get those invited guests, the global south, the middle ground countries and you mentioned to the three biggest ones, india, indonesia, brazil, those three countries make up a quarter of the world's population, and they are maybe -- i don't want to say on the fence but not taking sides necessarily with the war in ukraine. brazil told bloomberg news that maybe zelenskyy's visit felt a bit like a trap, like we have to come up and be on board or meet with zelenskyy. in the end, the president of
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brazil did not meet with zelenskyy. they said they could not find the time. but maybe he did not want to be put in that position of having to show support for ukraine where he has taken a neutral position as has indonesia and india, retaining their strategic ambiguity when it comes to the war in ukraine. fascinating stuff, too much to talk about in a few minutes. >> when it comes to more talks, we are checking further negotiations to pick up on the debt ceiling deal and we know that this truncated president biden trip, and it remains -- president biden's trip, and remains a distraction back home. what can we expect? >> aides to the white house and the republican leadership in the house are supposed to meet in --
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just about now, which is a potentially good sign that they are at the table. and then president biden and house speaker kevin mccarthy agreed during a call that president biden had from air force one to meet on monday. that will surely be seen as a good sign, including the fact that mccarthy said this initial call with biden was productive, that was a choice of words you have not heard before, the last few days were marked with recrimination between the two sides about who is at fault for making each side -- what each
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side said was an unreasonable demand. >> janet yellen said that there is not enough money, we won't get the details, to get all the way to june 15. she mentioned this problem before. sounds to me like they don't know what the money will look like. but this is part of the negotiations, or putting pressure on the republicans to get to the table and agreed with what the democrats want. -- agree to what the democrats want. >> she raised the possibility that as soon as june 1 the u.s. would no longer be able to pay its bills, which is, not so long ago, seemed a think about. the june 15 date came up in a connected, -- context that the government expects tax revenues
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on june 15, but you should not count on being able to get there before the money quote unquote runs out. she had some very specific warnings about not only what the u.s. will have to make choices on, and of the stresses we have to make, -- choices we have to make, which includes default, not paying interest on the debt, or things like cutting off or suspending social security payments domestically. and it all adds up to a very dire scenario that you have to say the administration has been warning about for months. since january. that's when the treasury started with extraordinary measures that now are at risk of literally running out. >> thank you. tony kochkodin washington --
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kuczka in washington. >> let's take a look at markets. is this cloud hanging over stocks? >> looking more at what the -- is happening in the fx space and said, but in terms of equities this has been a big question for investors. if in the event that these negotiations do stall, that the u.s. does not make its payments for the course of one week, they see the s&p 500 dropping 20%. it's interesting when you look at this chart here which shows a citigroup basket which has grouped together companies whose sales relied mostly on government payments and that has sexy fallen since the start of this year back in january. just to show you there has been a relative sense of calm which has come into the equity space which we saw with gains in the s&p 500 over the course of most of last week even though it ended lower on friday. let's change over because there
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are moves in the s&p, and we seek futures for setting up for weaker trading reflected here. mixed moves ahead of the session, kiwi stocks trading flat in the early months of trade but a lot of the attention focuses on what we were seeing in the fx space because we saw the greenback trading fairly range found in the early part of the session but keeping an eye on the yen as a safe haven and there are more commodity linked currencies like the aussie dollar. >> south korean president -- the south korean president and the japanese promised or have helped their third summit in two months. they had talks after visiting a memorial for korean atomic bomb victims in hiroshima. a first display of unity between american allies as they confront north korea. neel kashkari is open to skipping a rate hike in june.
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he told the dow jones it would give them more time to assess the effect of rate hikes and that he would object to any assertion that they are done raising rate hikes. the philippines finance chief is not expecting food prices to spike even as the country braces for the el niño phenomenon. they say that the extreme weather pattern is expected to only cause a slight drop in price and court output. he expects they will experience a week to moderate effect. australia and employment minister tony burke is backing an increasing the minimum wage that matches inflation. he says the government does not want employees to go backward when passing on, where he supported a 7% pay rise in line with inflation. he also pointed out there would be further figures released before the pay decision is taken. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. >> still ahead, the u.s. and g7
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tightening the vice on russia, expanding sanctions on the supply chain, the latest of elements coming up. our next guest says you should add to risky assets. this is bloomberg. ♪
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>> you're watching deborah kostroun a. a look at the week ahead, watching central-bank decisions, on wednesday, the rbnz is expected to deliver a rate hike. policymakers will wait for definitive signs that inflation is waning in indonesia before reducing the benchmark rate.
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on thursday, the bank of korea is set to release its rate decision, they say that consumer prices were easing for a third straight month. we'll be getting cpi prints from tokyo, singapore and hong kong as well. pmi manufacturing numbers are due out of japan and australia, we have a prime rate decision from china and the ppi data is also expected from japan and south korea as well. >> markets are on edge before where the the budget talks will produce a solution to the debt ceiling crisis as the window to effort disaster narrows. officials will resume discussions ahead of the meeting on monday between the president and the house speaker. that is your week ahead. >> debt limit negotiations will resume in washington ahead of the meeting between resident joe and kevin mccarthy in the coming
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hours. time is growing short to avert the default. let's talk more about the petition for markets. gaurav mallik, -- joins us. as we get closer to that date, even though we have been to the precipice before in terms of how investors might be used dealing with this kind of standoff, do you see this heightened volatility risk across asset classes? >> something is different this time around. you have a confluence of factors coming together. you have an economy slowing down, the fed not declaring that they have resolved inflation and generally monetary tightening on a global basis, plus liquidity being drawn from money markets. no matter what the conclusion of this negotiation, it is going to be something that will result in fiscal contraction. that is a certainty, whether it is two years or 10 years, that
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is up for grabs. when we think about all of these factors coming together, the impact is going to be heightened volatility, lack of liquidity support means that we will stay at higher levels for longer than the previous crisis in 2011. unfortunately, that does mean that as we look at portfolios, it's very much thinking about protection and safety, this might last longer than life -- last time in terms of the impact. >> interesting that you are cautiously optimistic when it comes to emerging markets. how does the volatility when it comes to the dollar and the uncertainty in china's recovery play into that outlook for you? >> first at a high-level, as we think about it on a global basis, the world is going down against that backdrop, an economy is looking -- that is
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looking to stimulate his china, and we are encouraged by that move. it brings diversity in assets. i think there is no dispute among participants, you can ask anyone on a two or three year basis that the dollar will be declining. the issue is the journey the dollar will take as it gets to something i would say, another 10-50% lower than it is at today. and more consistent with what we have seen from anything from 2005-to any 19 -- 2019. the challenge as the dollar goes down is that any increase in geopolitical risk runs back to the dollar. it remains this is safe haven status. it makes it more challenging to get into emerging markets. the final thing, just in terms
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of fed policy, we do typically think the path to rate cuts is six or nine months after, which is where we are at right now. that's a reason to be optimistic, that as the fed against restimulated perhaps the fact -- path is faster. >> to follow-up up on that, in terms of the fed and the dollar and equities for that matter, does that whole process of i know you are in favor of equities and you have a preference for europe, but even if the fed just says we are skipping this meeting and we may keep hiking rates, you're still worried about inflation, will that alone be enough to make investors ready to put on more risk and buy things with more assurance than they have in the past? >> i think that is a very good sign but it is not enough that puts us on the right path.
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once they make an announcement you are still looking at six or nine months as cuts flow-through and investors gain confidence. when i think about how markets trade on fed policy decisions, investors start looking and trading on next year's multiple, there are no longer ready for 2023 but 2024 and 2025. why are we looking, because we expect the fed will stimulate the economy at some point in time which will provide a boost to earnings. and i think that does stick at nine months. when you were thinking about optimistic and feel good risk assets, i think it still looks like q1 or q2 of next year that you can have that comfort that inflation is under control and that the fed is going to be stimulated the economy. that shows through in the earnings. >> so you mentioned that you are
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watching for the yield curve to steepen, and depending what you are looking at that has not steepened yet. and are we going to start seeing that -- when are we going to start seeing that? >> i think that signaling of the peak rates is enough to stop pricing in that game but what will flatten the curve and then make it go back again while happened five-eight quarters after the first rate hike. so if you started in march of 20 trade two, you're looking at that q1-q2 number that you can expect those things to start easing. i think one difference about this cycle was just the fact that liquidity is being drained out of the system at the same time, and investors have become used to an environment in which there is a constant use of the balance sheet by the fed and the
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central banks. and i think that is the part that is going to take a little bit longer than a typical cycle which is why we think that q1 or q2 of 2024 is when you can be more comfortable with risk assets. >> gorevic malik, chief strategist at state street global advisors. you can get a roundup of the stories that you need to know in today's edition of daybreak. terminal subscribers can go to dayb and you can customize your settings to get news on industries and assets that you care about. this is bloomberg. ♪
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>> a quick check of the latest business flash headlines. new zealand is suspended 100 --
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$188 million to reduce emissions at a mill near auckland. that will replace coal-fired kilns with electric furnaces. the premise or says the project will eliminate 1% of the total admissions in new zealand. a committee appointed by the indian top court says it does not see any regulatory failure or prize-winning collation in the rise and fall of adani stocks. it comes as a relief for adani, which has lost over $100 billion since they hindered -- the hindenburg controversygenesys ws a national nonprofit that works with top companies, to provide opportunity for underserved youth from communities around the country. i didn't really expect to go into an internship my senior year, let alone a paid internship with a big organization. comcast■s commitment to digital equity, aligns very closely to ours. funding through red nose day and comcast directly funds our technical training. we can make a difference
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in the lives of one person and future generations to come.
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>> ukrainian president follow me at zelenskyy has celestine -- suggested that is falling as
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russia claims control of the area. he said that he does not think the city is still in ukraine enhance. his spokesman later said that journalists misunderstood the comment. the u.s. will provide another 370 $5 million in military aid to ukraine according to the president. zelenskyy's plan to rally the global south hit a speed bump at the g7 -- g7. he was sick -- seeking a meeting with the brazilian president but scheduling issues prevented from happening. officials warned that the president was unnerved by zelenskyy's trip to japan and felt pressured into the meeting. china has delivered the latest salvo if it's the splitting chipboard with the united states announcing that micron products have failed to pass a cyber security review. they have more operators of key infrastructure against buying them due to quote unquote relatively serious cyberpunk -- cybersecurity resist.
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-- issues. hong kong chief executive john the its leading a one-week delegation to singapore, india and indonesia late in july. he will meet with top government officials and representatives from a number of industries. hong kong has been pushing to joint the regional conference of economic partnership as china back trade deals -- a china back trade deal that includes local nations. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i am vonnie quinn and this is bloomberg. >> the white house and republican lawmakers have resumed negotiations on raising the debt ceiling and preventing an unprecedented default. resident biden spoke about the talks with republicans at the g7 meeting and he is here answering a question on spending cuts from our reporter. >> there is a lot that is going on relative to spending. and we have agreed to cut
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spending. we have cut spending and we're going to continue to cut spending. but the question is, what base do you start from. if you remember when the republicans introduced their speaker bike, i guess, a four or five majority, was able to pass, what he calls is extending the debt with the limitation on how -- what you had to do to expand it in terms of the budget. i said i'm not going to negotiate on whether to extend the date, i will negotiate on the budget. on the budget side, he came along and said initially, it was hard to determine where they are , and i know you might know more than i do. they came along and said we are going to move off of the 2023 budget. and that is the baseline we're going to use for the next two years. that budget. this is what about what you oversold on, the add-on money
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that you all agreed to, and that the house and senate voted for. they said that includes that. i said ok, we might be able to work on something. we started calculating what that would mean and came up with a 22% cut for everything in the budget except the things that have already been passed, the initiatives that i have already passed in terms of infrastructure and the affordable care act and etc.. in the meantime, what happened is that seems to be changing. i sent well, we are going to exempt, we said that you're going to cut that, they said that we are not going to cut veterans. and i said that's good. and there were going to cut medicare and medicaid and i said no, not medicare medicaid. not social security. the said no no no no.
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first time i ever had and negotiation in the state of the union message. they said were not want to cut that. that's off the writer. what else is off the radar, and into some other things. that means if you want to get the number that you wanted from freezing the budget at 2023 plus the additions, then it means you have to go for 22%, and you end up coming 30% or 35% of the discretionary budget. if you calculate what they are talking about, you might lose 100,000 teachers and assistants. you will lose thousands of police officers across the board. just calculate what it means if you take all discretionary spending and you make the distinctions other than what the percentage number of the cut is. some of it makes absolutely no sense at all. what we have done is that we are going to have to sit down, i am hoping, that speaker mccarthy is just waiting to negotiate with me when i get home, which has
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been -- i don't know whether that is true, we will find out. but the first week we were not making progress that we made a lot of progress then all of a sudden they came back with a proposal that was very cut back from where they had a great, or discussed. -- agreed or discussed. i don't know, we get eight counterproposal to the counter again, sounds ridiculous but that is what we did, and i waiting to hear the response to what we have offered. we are willing to cut spending as much as raise revenue so that people start paying their share. raise your hand if you think the tax structure is fair. remotely fair. what do you think iesco anyway. --? anyway. that is the context. [indiscernible] >> i know that, that is under negotiation right now.
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i thought you said weather and lifted sanctions -- whether i lifted sanctions, or what i sell something. the answer is under discussion. >> that was presented by its wiki at the g7 summit. i next guest says that the g7 story was centered around ukraine and zelenskyy, he is personal appearance provides strong support. however, there was little evidence of winning over unassociated nations. joining me now is our next guest. carolyn, great to have you. so much happened at the g7. let's start with that. this is part of the struggle of trying to get the nations like india, indonesia, brazil, the global south, to take a stronger position in support of ukraine, stronger than they have because
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they are very neutral. what came out of this and how important is this to where the g7 is trying to drag in the g20? >> i think for the g7 this was the second year where ukraine was a big part of the agenda. last year at this time, the oil price cap was established and went into effect in december. i think it is hard for a country like india, for example, zelenskyy sat down with prime minister modi, a big taker of russian oil and india has taken a position of nonalignment. which for its own strategic interest makes sense. i think many of the countries that solesky was seeking support from state on the fence. and they are staying on the fence while kind of the understanding that they sort of rather hedge without taking particular sides, given the economic consequences and he had
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the freeseas countries. -- the headwinds that face these countries. >> with this debt ceiling debate it's a melodrama that happens every so often. in some sense does this bring down the u.s. influence of the world, to other nations in the g7 or nations that don't get on board with what we want them to do feel less inclined? >> it's a great question, it's also somewhat problematic in terms of the optics. by then leaving a little early -- biden leading a little early and not continuing with the quad. i think it a no-win situation. if he stayed on and did not return to the united states and deal with the debt crisis, of course, the republicans would call him out for that. i think it's a challenge. i think that the united states sort of has to do with the debt and i think -- i hope there will
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be a resolution and i believe there will be. i think the united states is confronted with a lot of challenges right now, with regards to how it's viewed by under -- other countries. it goes back to your question as to why some questions -- countries are hedging their positions with regards to russia's aggression against ukraine. >> perhaps even more so than missing the quad was the apology to the prime minister, but he was also supposed to meet with these 18 pacific leaders. does the u.s. need to make it bigger efforts -- a bigger effort in terms of rescheduling or making a new summit to try to count away -- counter weigh china? >> with regards to the end of
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pacific, their commitment to a free and open into pacific and their commitment to the quad and the avon -- asian-pacific with regards to the stance that was taken at the g7 around china's economic coercion and kind of a unified statement saying that the g7 is going to seek to counter china's coercive sort of tendencies, you know, again, i think that the united states has to show and illustrate a much more concerted effort for asian partners. i think japan is very much aligned with the united states, but it think that countries like india, indonesia, i think they need to see more attention from the united states. >> this situation with china is so multifaceted because at the same time you have the collective statement been quite
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general and not targeting decoupling as such. president biden says he expects relationships with beijing to improve shortly at the same time that china is banning purchases of microchips. how do you see this being a more targeted effort? >> i think this goes back to janet yellen's speech at johns hopkins, assuming that the united states is not going to decouple but distance, economic distance ourselves from china. again, mixed messages, because of course we know that xi jinping and biden have an upcoming meeting, and to use very hard frederick in advance of that meeting will raise questions as to what the outcome of that meeting will be. i think it is a really tough situation with regards to how the united states approaches
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china and gets its partners from the g7 involved. i think it is an ongoing challenge and i think the united states has been using very harsh rhetoric in some cases, even using the term decoupling recently in moving away and distancing and targeted approaches to where there are questions about the resiliency and security of the supply chain . and also when we see energy investments around the green transition and how the united states and other countries called a green industrial policy to hedge against china's monopoly on much of the manufacturing capacity in the renewable energy space. >> carolyn kissem there.
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the quad summit which was supposed to take place was crammed into a meeting on the sidelines of the g7 in japan, it barely lasted an hour. there was obviously an apologetic president biden for these domestic priorities that scuppered what we were supposed to be covering here in sydney. did anything significant come out of it? >> a large amount of significance. it was crammed into 47 minutes and it was meant to be a two-day summit. it's amazing what you can get done with the pressure is on. the whole bunch of new measures on undersea cables, agreements on the climate, critical energy, critical minerals, clean energy as well and the formation of a new body called the quad investments network which is supposed to protect supply chain from economic worship. we also have had reference to
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other multilateral ball -- bodies, all pushing back on this narrative from china that it is an exclusive club. as for china, not mentioned once. not a single reference in the whole 3000 word statement. that was left to the g7. >> while the quad may not be happening, the premise are in india is still visiting. what is his agenda? >> australia and india are negotiating free -- free trade agreements, more negotiations will take place. there will be a longer bilateral meeting there where modi will be -- meet business leaders and ceo. australia is looking to diversify its trade and china is still the largest trade partner, but we did see all those trade strikes last year, gradually being rolled off.
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india it distant fifth in terms of australia trade. looking to promote that a little bit more as well. the event that is probably going to really grab all the headlines and suck up all the oxygen is modi's meeting with the indian diaspora here in sydney. it big stadium event is planned and that should provide plenty of life and color happening on tuesday. >> paul allen there, and it will be quite the spectacle. more to come here on daybreak australia. this is bloomberg. ♪
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>> it's official. a big battle underway to determine who will succeed the morgan stanley ceo after he announced his plans to step down. su keenan joins us. there are three key contenders here. >> this is a trio of top executives at a top wall street bank and it will be widely watched who emerges as the one to succeed in james gorman who expressed confidence about his plan but did not announce any names when say -- saying who would be taking his place. can't pick is the head of the institutional securities group, dan simkowitz manages
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investments on both sides of the firm -- firm, and annie saperstein manage his wealth growth. morgan stanley was struggling to recover from the financial crisis, what the ceo transformed the bank after it nearly collapsed. taking over from 2010. he said he planned to step down as ceo within 12 months and was previously at merrill lynch, and he said it is the board and my expectation that the transition will occur at some point in the next 12 months. that is the current expectation in the absence of a major change in the external environment. that references that there could be a lot of volatility ahead that perhaps hastens the change we will see. the real face-off is between saperstein, whose wealth unit
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was a driver of growth at morgan stanley and pick, months the riskier dealmaking. although he has had one public misstep. his group was caught wrongfully back in 2021 with the archegos capital management collapse. >> we did see that slide in the stock. is this seen as a short-term negative? >> pretty much. we can see that it did fall two and a half percent, at its lowest point on friday, managed to close down just about 2%. analysts are saying that any uncertainty over such a shift is likely to be a short-term negative. 13 years as -- his 13 see your dashers as the ceo is seen as a positive, and he is excited to become the executive chairman for a little bit after he steps
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out. morgan stanley has been on one of the best-performing bank stocks since he took over as ceo. again, it is seen as having been in good hands and it appears to be handed off to three very capable managers, fascinating to see which one emerges. >> bloomberg's su keenan there. let's take a look at the bets that the fed will make -- meet its 2% inflation target. we see asset managers saying that this could be a pipe dream. animal joins us now for the morning call. why do we see increasing doubt? >> this has been an interesting debate going on on wall street because you can take a look at some wombats out there saying that inflation will get close to that 2% inflation target in the next year taking the break index as a guide. but asset managers on wall street say that this is simply
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unlikely, and one of them says we will seek cpi's stock within a range of 3-5% for many years to come. that is if the u.s. falls into a procession, invesco says that the market is being overly optimistic and a contraction will put a lid on price gains in citigroup says that you can't really bring down inflation in a meaningful way whilst weight -- weekends are saying elevated. if you change overnight, what is happening on wall street is designed to avoid a repeat of what happened last year, which is when a lot of the top asset managers on wall street were slow to realize that not only about the pace of inflation gains but how much the fed would need to hike in order to bring them down. so what is now becoming the status quo is that we will see inflation saying high for longer, we are looking at in -- history as a guide here, and when you go back to 1960 it has taken up to 12 years to slow
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inflation down to 2% or lower once it has breached the 5% mark. >> we are getting closer to the target. 3-5%, prices continue to go up a lot. >> is a something that bloomberg economics has looking at. we could cook it down to 3% by midyear and that would be feasible if recession starts in the second half but saying at that level this a getting down to 2% is going to take a lot of work because there is a limit for how much price insist -- as prices for goods and services and housing could continue to drop. they're also looking to the economic calendar which includes the fed's preferred inflation gauges that are due. they're looking at the reading expected to come in at 4.6% on their in line with the prior month as well.
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kathleen. -- in line with the prior month as well. kathleen. >> all that and more coming up on daybreak. this is bloomberg. ♪
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>> now for a quick check of the latest business flash headlines. australia has moved to regulate right now pay later firms under
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credit laws, drawing on a process taking requirements on mature industry, forcing them to adhere to responsible letting up negations and credit licenses. spacex lost pay for person crew, it's falcon 9 rocket carried for private astronauts including the first woman from saudi arabia. -- space. spacex -- that is it for daybreak on charlie. deborah kostroun are coming up next, keep it right here. this is bloomberg. -- daybreak asia is coming up next. keep it right here. this is bloomberg. ♪
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>> you're watching daybreak asia coming to you live from new york.

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