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♪ >> good morning and welcome to daybreak australia. annabelle: we are coming down to asia's market open. >> i'm vonnie quinn. the lighthouse says restoring military communications between the u.s. and china is a priority and at the meeting between joe biden and xi jinping. haidi: key data across the region. bloomberg economic says they may finally pull the trigger on a rate cut. vonnie: disruptions at four of australia's sports could

continue for dates after a cyber attack leaves containers ahead of the holidays. annabelle: we are coming down to the opens for australia and tokyo trading but we are looking mixed when you take an eye to the future space. you've got aussie futures looking higher, kiwi stocks in negative territory. what will drive that is the u.s. close on friday because besides strong move higher for u.s. stocks closing above a key 4400 mark. a big rally coming through in tech stocks in particular. the fx space where we are feeling muted, we are feeling muted, we're continuing to watch the yen because we are close to the euro today low against the greenback read broadly as well not expecting any big news coming through following the session on friday on wall street. let's change on because what is

interesting is even though we have fed officials like rafael bostic, marianne daly as well saying the 2% target is coming into sight. it is longer-term inflation expectations that are becoming an area of concern and the latest university of michigan survey showing five to 10 year inflation outlook is that a 2011 hi, a concern because it tells us some who took the survey are concerned the fed will never fulfill its inflation target. vonnie: so much his the geopolitical interplay. the white house says resuming u.s. china communications is a priority as the leaders prepare to meet. let's bring in politics reporter gregory. there's been managing of expectations because there are divergent interests and areas

where it seems impossible to find consensus. what are the sort of guidelines we are getting before the meeting? gregory: jake sullivan was out today talking about the meeting that president biden and she doing will have on the sidelines -- xi jinping will have in san francisco. talking about efforts to restore military to military communication, 2d conflict military exercises in the south china sea where the u.s. has navigation exercises to know that china knows that the u.s. considers them international waters. china will push back and do exercises there to assert its claim to those waters. but the very fact that sullivan is talking about that issue suggests that there might be progress to be made.

these are the summits that they don't really like to talk about when they cannot deliver. this may be one area where the u.s. and china can make progress and they may be on the fall of the freeze cycle we have with u.s. china relations from time to time. vonnie: we are hearing they will agree to ban ai in a thomas weapons but don't they really want to talk about taiwan, ukraine and the middle east? burglary: when you talk about china its influence to all parts of the world, right now the hot is the middle east. so joe biden will likely talk about china's purchases of iranian oil which have reached a new high recently as iran has dumped a lot of cheap oil onto the market in china has been evading u.s. sanctions to get the oil into chinese ports.

that is troubling for the biden administration is there is concerns iran will use the proceeds of the sales to find hamas, fund hezbollah, fund terrorist groups in the palestinian territories in the middle east and in the midst of the israeli hamas war. haidi: when it comes to the hostage negotiations, we are looking at pauses in the conflict. do we know that progress has been made? gregory: there are calls for pausing in the israeli counteroffensive into gaza to address humanitarian concerns. and then also to get some hostages out. president biden talk to the mayor of qatar, a key germ ed

area between israel in the u.s. and hamas on the other because there is no direct talk between the u.s. and hamas to talk about some hostages that we learned about, a three-year-old american citizen whose parents were killed in the hamas attacks on october 7, the u.s. is concerned about it and trying to give the intermediaries to see if the child can be returned to the u.s.. vonnie: such an shortened week, the gated international situation or joe biden. it seems particularly on the knifes at right now. what can he achieve out of the meeting that might benefit him? gregory: it is a tight rope internationally and domestically. u.s. china relations are a huge issue in presidential primaries as all republicans want to out hawk each other on china. the white house does not have

the luxury of anti-china rhetoric. they have to improve on the relationship and so it is a tight walk and they are going to want to get some kind of deal out of the summit in san francisco but there will be scrutiny to make sure it is not perceived that china is getting the better end of it. vonnie: thank you, that is bloomberg's white house and politics reporter gregory. up next, speaking with the ceo of strattera financial group on why she thinks the u.s. economy is not slowing as much as some suggest. this is bloomberg. ♪

♪ haidi: you're watching daybreak australia taking a look at the week ahead. cpi data is expected to increase

for third month. ahead of last october cpi is rising. price pressure is bringing apprehension among officials to signally all clear. we'll be watching cpi in the euro zone. china's activity data will show the recovery being forecast as well as fixed asset investment. retail sales may pick up but that will need to pay comparison rather than stronger consumption. market consensus is for a halt. japan weeks the economy to shrink and recover consumer spending. we have a big rate decision, gdp figures. export numbers as well as ppi figures out of japan.

we will be watching some u.s. retail earnings and results from walmart, target and how consumers are dealing with rising prices ahead of the key euro holiday shopping season. that is your week ahead. vonnie: the u.s. was threatened with the loss of its top credit rating after moody's lowered the outlook citing wider budget deficits and polarization. joining us is the cio at six era. i know you've been bullish but market gets its first chance to react to the lowering of its outlook. it's the last frontier as they downgraded the u.s.. does this make any difference to the outlook? >> it does not. we have been cautious but what has changed is the fact that the fed is going to cut rates next year and the other perspective is you look at the economy it's

going to cool down to a soft landing no gone through the soft landing. housing and manufacturing is already past recession and third-quarter numbers came out at 2.2 percent over year. you combine that with inflation and it is a growth push. markets are worried about the government but yields are going to go between four and 5% which is where it was before the policy so we are not too worried. we are watching carefully but we will get data in terms of increased borrowing or not but we are not worried and were watching it carefully. vonnie: are you saying that the fed is back now that we've reached a level to which where we are going and the next iteration is a cut happening soon? >> we think first of all

inflation is slowing down, economic growth is slowing down in the fed will cut rates. the dot plot in september was straightforward. the fed said in september, no recession and they're going to cut rates so we believe they will cut rates which will be a market boost and then there's other factors that were positive on. vonnie: why would they cut next year? we are seeing inflation coming down but it's in the three and a half range and we are not seeing softening in the labor market. >> the fed has been effective because inflation has slowed down. we will see inflation that has not factored in cpi. services inflation will take a while. look at the core inflation. the fed funds rate is high above the mutual target.

i'm guessing it will be two and three quarters or 3%, second of all you think about treasury yields, they are two or 3% above inflation acting as a drag on the economy. as i mentioned before, the september dot plot played out perfectly. vonnie: where should investors be position heading into 2024? >> to be optimistic the correction in september was amazing in the sense that it improved valuations. the recession is over. in the third quarter markets are expected to have half a percent decline in earnings. so the recession is over. when we go forward areas of value, industrials, geopolitical, businesses, factories. the second area is financials. financials are cheap.

when you look at yields going down, there borrowing less from lending facilities. the third area we like is health care. health care is the third worst performing sector. think of all the new drugs, percent loss i'm excited about that. vonnie: are you talking in general are you saying regional banks? >> large banks because loan-loss reserves are very high right now. we think if we have a recession, a mild recession is in the cards. >> you bought global stock so outside of the u.s. what is global to you? >> lot of materials, industrials

companies. vonnie: in every continent? >> primarily in europe. we think most of the bad news. that's a great boost for consumer spending. less money spent. everything will be volatile. we are looking at ways and volatility. the fed says there will be lots of turbulence. vonnie: they are hoping. the fed chair has said stuff did not price back in but he seemed to be more worried that i had heard previously. -- is of voter next year. she is a hawk. it does it depend on her? >> a big risk is geopolitical risk. and the third is her joining the fed as a voting member.

she is one of the most hawkish member of the fed. this puts a hawkish bias on the fed for the first six months of the year. vonnie: investors we have asked, 52% of those said it is a top contrary and picked. what would be a hedge against what you have outlined? >> think about high-yield bonds. they are at super lows right now, if the faults pick up or if issuances increase you will see high-yield. spreads are narrow because there has been very little in terms of negotiations, we are watching carefully. vonnie: contrary pick? >> technology is starting to get more attractive. vonnie: thank you, that is jean

goldman, cio at six era financial group. turn to bloomberg for our coverage of the cpi report later this week. go to tliv to get analysis from bloomberg's expert editors. this is bloomberg. ♪

♪ haidi: china's top e-commerce platforms increase on the actual date of saturday. this is the blitz that has held over a month. discounts were the theme in order to boost sales. let's cross over to stephen in shanghai with more how did it play out over the weekend?

what does it tell us about the consumer in china? stephen: singles' day is november 7 -- 11. it's already been going for several weeks so big companies like alibaba which host single'' day and jd.com and others have simultaneous shopping discounts. it is kind of hard to put a gross merchandise value on a single day when the extravaganza goes over 30 days so they are not giving total numbers. what they are saying is transaction volumes and orders and sales are up from last year. in fact alibaba is seeing an annual shopping blitz, a barometer for consumer sentiment up from one year ago but not giving those numbers. jd.com, more detail, record highs in transaction volumes,

order volumes and number of users but neither company gave gross merchandising values. the numbers i can pull out specifically our direct discount value offered by merchants to buyers of a flat 15 percent that reached 210 orders during the sales time, and more than 400 brands exceeded 100 million yuan , jd saying more than 60 brands surpassed sales. and transaction vines tripled. we might have to look at granular data rather than what these companies are telling us. like postal delivery companies, essentially they handled 16% more packages with 630 9 million deliveries on saturday alone and then november 1 to 11th, 23% increase in deliveries so i wish

i could tell you that the gmc was x percentage better than one year ago but it is not really the best barometer for consumption demands. steep discounts were the theme to boost sales numbers and get the consumer back in mind of shopping. vonnie: that is the unknown. there are all sorts of discounts that went on so what about margin pressures? what will the pressure be on alibaba and jd.com post this extravaganza? stephen: there is margin pressure across the board as the consumer confidence and business are weak right now. i've been in shanghai for a week, it is evident that there is a malaise in the consumption side of the economy. it's not only the data, it is anecdotal as well so bloomberg

intelligence is out with this report saying there is going to be margin pressure because of incentives that these platforms and they are encouraging merchants to offer these discounts. if consumer and business sentiment does not improve, margins will have to persist and that will be a long drip. both jd.com and alibaba will report previous quarter earnings so these numbers from singles' day or singles month are not going to be reflected. it will give a good indication whether the consumer is starting to recover some sentiments. vonnie: worthwhile, right, steve? that is bloomberg's chief north asia correspondent stephen engle in shanghai. corporate stories we're tracking, boeing is throwing in a major deal from emirates. they say the carrier is planning

a double-digit order of the plane. emirates was the biggest buyer of the jet in the deal could be an endorsement of boeing's newest and largest aircraft which has struggled to lynn sales as it falls behind schedule. bloomberg learned turkish airlines is planning to order 350 aircraft at dubai's airshow. it would one up emirates which is in the market for plans. if they do go through they could set a record last seen a decade ago when the rang in commitments on a single day. haidi: take a look at the scene being set in a week fraught with events. look at geopolitical with the leaders summit as well as all the earnings. this is a jump when it comes to trading. the dollar has been mixed ahead

of that meeting. the australian dollar pretty unmoved. when it comes to the resetting of port operations after the cyberattack, we are seeing the greenback looking tight when it comes to trading. euro-dollar is holding steady but over the 151 level. it is at the point where we will be on watch for intervention that has not materialized. when it comes to dollar-yen that's the biggest we've seen. this is stemming a five day slide, the worst week since the june break from the three-week rally. dollar china on watch today depending on -- taking a look at the picture as we start trading on this asian trading week. sidney futures look mildly positive, up 3/10 of a percent

higher. watching some of the banks we had cash profits missing estimates and dividends could fall as we had a 15% earnings dive. challenges for financials. futures looking robust over 1% higher. much more to come on daybreak asia and you can also get a roundup of stories you need to go to get your day going. terminal subscribers can find that a dayb . customize settings as well for the news on the industries and assets that matter to you. this is bloomberg. adam: serving in afghanistan, i was hit by sniper fire and i was given a 5% chance to live. today, i visit classrooms and share my story. i tell kids that with a little help and a lot of work, that you can overcome any challenge. announcer: dav helps veterans like adam get the benefits they've earned. they help more than a million veterans every year.

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>> i spoke to the vice premier about our goal of achieving a

healthy economic relationship that benefits both our countries over time. we do not seek to decouple our economy from china's. this would be damaging to both the u.s. and china and destabilizing for the world. haidi: janet yellen speaking after her meeting with the chinese vice premier on friday. our next guest says the u.s. and china should talk about shared as well as diverging interests while still trying to accommodate each other. they are a partner at the stonebridge group and served as a senior director at the china affairs unit of the office of the u.s. trade representative. amy, great to have you with us. there is a lot of calming of expectations going into this. the fact that this meeting is happening at all has got to be a good thing, right? what are you hoping for in terms of deliverables? amy: it is a good thing.

when the two leaders of the largest two economies of the world do not speak to one another for a year, it is important that they come together face-to-face, which is what will happen on wednesday in san francisco. expectations have been set very low, both here in washington where i sit, and from beijing as well. however, both sides have spent months appearing for this meeting to happen, reestablishing communication lines which have been very important because they really were shut down at the beginning of 2023. and talking about areas where they do see overlap. of course, the first and foremost one is just talking so that there is no misunderstanding that could spiral into confrontation. obviously, we have a very competitive bilateral relationship. both president biden and president xi see interest in their own domestic politics in demonstrating to one another to

their domestic economies and to the world that they can manage this competition without damaging their own countries or the global economy. haidi: amy, do you think that the political environment for the u.s. and the economic environment domestically for china has led to this point where it might be a little bit easier or i guess one side might have more leverage over the other in terms of actually getting to agreement on issues that may otherwise be more contentious? amy: well, again, i think expectations have been set very low for outcomes of this meeting beyond reestablishing channels of communication. as we heard, secretary alan -- as we heard secretary ellen just say at the top of this story, one important message the u.s. government felt the need to

communicate directly when she was speaking with her counterpart was that the u.s. does not seek to decouple the american economy from china's. that has been an important thing to say to china and to the world , that the u.s. does not seek decoupling. we talk an awful lot about de-risking, about diversification, and those things are very important, but they are not seeking to disrupt china's economy. or harm china's economy, and i think that is one very clear message that the u.s. side has felt was important to state to the chinese because that was really being distorted within china. the u.s. government is trying to keep china's economy from growing at all. and so again, incredibly important for the two leaders to speak clearly with one another about expectations for what will happen in 2024. a very contentious year we anticipate for the bilateral

relationship, so reestablishing these communication ties, whether it is on the economy or between our two militaries, is incredibly important and that is what the two sides both seek this week. stephen: -- haidi: it's interesting because there are these evergreen industrial policy-type questions that will be raised but at the same time, perhaps one of the more pressing issues is going to be china's ability to play a key role in the gaza war. do you expect progress to be made there, particularly with regard to how beijing manages iran? amy: from here in washington, you are absolutely right. obviously, the biden administration wants to raise these issues. they want to raise the issue of china playing a constructive role in limiting iran. they are very close allies, their ambitions in the middle east, so of course preventing the israel-hamas war from expanding beyond gaza. so that is something that will

be spoken of very explicitly when the two leaders meets. in addition to that, of course, the u.s., as secretary yellen did with president biden, they certainly will talk about ukraine and the need for china to restrict its companies from providing aid to russia's industrial production capabilities -- database and capabilities that are being used to fight that unlawful war in ukraine. so you are right, it is not just talking for talking's sake. it is washington wanting to engage beijing on these issues that are huge geopolitical tensions in the relationship and for all companies and investors around the world. at the same time, i will be quick to add, of course, xi jinping is showing up in san francisco, seeking clarification and reassurance that the u.s. government is not veering away from its one china policy. will not give any kind of support to taiwan ahead of or

after its january elections. that promotes a separation from china. and that is something that i think that biden administration continues to say. we are not changing our one china policy, but it is an area of very -- very much tension between the u.s. and china because of the possibility of an accident spiraling into some kind of confrontation in or around the taiwan straits. so again, very important for the two sides to be talking directly to one another so there no misunderstanding about these geopolitical tensions. stephen: -- haidi: what is the best do you think beijing will be offered when it comes to the issue of taiwan? amy: a restatement of long-standing u.s. policy. we saw this last year after the two leaders last met in bali. president biden walked out of that very long meeting with xi jinping and spoke to the press,

and during his remarks to the press, he restated the long-standing u.s. one china policy that china -- that the united states only recognizes one policy, that the united states does not support taiwan independence, and that the united states seeks for the two sides to peacefully resolve their issues in the future. that is likely what you are going to see coming out of this meeting as well. it is important for the u.s. to restate that long-standing policy. as xi jinping said last year, and i bet he will say again this year, this is the core of china's core interests, vis-a-vis the united states, that the u.s. not veer away from this one china policy that does not put any space between taiwan and china. that is an issue for taiwan and china to decide and the u.s. not to interfere is what xi jinping will say. haidi: we have heard from xi

recently, again reiterating the messaging of china's opening up, the welcoming of foreign business interests and the opening up of trade. we heard from the chinese vice president at the new economy forum in singapore in last week, warning about the downside of de-risking but for american businesses, what will they need to see? it is not a relationship or operating environment that has been synonymous with predictability if you are a business owner or an investor. amy: that is exactly right. the clients that i serve are all concerned about the direction of china's economy and whether and how they as foreign investors can continue to operate in china in the same way that they have been operating in china for decades. so you are absolutely right. one thing that xi jinping is prioritizing while he is in san francisco this week is a dinner

with the business community that will happen on wednesday night. i'm looking forward to being there and hearing directly from president xi not just commitments but actual concrete steps that china is taking in order to keep its economy open. there has been a lot of concern -- you mentioned this earlier in our interview -- in the u.s. and china actually not being able to cooperate as well together because china's economy is having such a difficult time recovering. and so, what u.s. investors -- i will be quick to add chinese investors as well -- want to see is china's commitment to welcoming more investment by private investors, more business operations, without the fear of counterespionage laws, export restrictions that china is imposing on production from china leaving the market and of course other issues that really are inhibiting investors

operating in the market. xi jinping needs to reassure business while he is in san francisco that china will take concrete steps to maintain openness. haidi: amy, always great to chat with you. all right stoneridge group partner. -- albright stoneridge group partner. >> we will see if there is any market reaction afterwards as well, haidi. it's very possible there will be. here is other political news around the world that we are keeping an eye on. u.k. police arrested dozens of mainly far right counter protesters seeking to disrupt a pro-palestinian march. it coincided with remembrance day in the u.k., marking the end of world war i. it is the biggest since the israel hamas conflict began and put the spotlight on rishi sunak's government after the

british secretary called for pro-palestinian protests to be banned. protests have broken out in spain against the government plan to grant amnesty to catalan separatists. reports suggest more than 270,000 people took to the streets across 15 cities. the demonstration, called by the opposition, increases the pressure on pedro sanchez. he is seeking a new term in a parliamentary vote this month. he needs the help of a council nonparty to secure the majority -- catalan party to secure the majority. haidi: it is a big week when it comes to the geopolitics of it all with that u.s.-china meeting but also a cpi print that will be key. we have really seen the sort of central-bank story at play here. norway's currency outperforming

broader g10 peers after the central banker there really kind of suggesting that bets will increase. let's look morning calls. annabelle is in hong kong. goldman sachs saying the greenback faces more headwinds going into 2024. annabelle: it's around those expectations for the fed and what other central banks do. goldman sachs saying the outlook is going to be darkening, facing headwinds going into the next year. what they are saying is the dollar is facing a shallow downturn. it is not about a sharp drop after the signing of the plaza accords. why they are saying that is the case, they are looking at the outlook for the u.s. economy. they have got an above consensus forecast on growth for next year and they are saying high yields should provide a high bar for total return prospects so that is the outlook for the dollar but let's change on and take a look at the trading direction

over the course of this year because we did hit that fresh here today hot -- year to date high. one point 6%. we are on track for a third straight annual gain for the dollar as well. >> apparently bank of america has shared its outlook on the dollar. tell us about that. annabelle: that's right, vonnie. they are taking a look at bullish dollar bets and they are unwinding at one of the fastest pace is that we have seen since early 2021 so it's really about those changing positioning we are seeing in terms of the greenback and saying that that makes the dollar a little bit less vulnerable than it was a month ago when it hit that fresh year to date high. it does indicate to us that the turn in u.s. data, the more explicitly dovish fed, these are really what is playing into it so when you talk about a dovish fed, those expectations, we are going to start to see carts and it tells us how important that

inflation data is this week. that's take a look at the expectations because it is the core reading that is going to be one of the most significant, expected to go higher on the year again and testing perhaps those predictions that the fed is going to be cutting next year. vonnie: thank you. don't forget, you can watch us live and see our past interviews on our interactive tv function, tv go. you can dive into any of the securities or bloomberg functions we are talking about lust become part of the conversation by sending us instant messages during our shows. this is for terminal subscribers only. check it out at tv . this is bloomberg. ♪

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haidi: dp world is is still working to restore operations at its ports after a major cyber attack on friday. paul allen joins us now. what has been affected? what are they trying to do to get things back on track? paul: it handles almost 40% of the trade coming in and out of australia and the ports that are affected are not insignificant either. sydney, melbourne, brisbane, near the city of perth as well. tens of thousands of containers impacted here for a country that lies on sea transport for most

of its trade so this is a very serious thing. some operations are being gradually restored and also working with some of its competitors to get some of those time critical shipments through the door, things like medical supplies. as far as the motivation, who knows. >> do we know anything about who might be responsible for this attack or what they might want? paul: the short answer is no. no one has claimed responsibility and there does not appear to be any ransom. if there is, it has not been made public. the police are investigating. they say they are looking at what data might have been access, what might have been:. dp world says it appreciates how concerning this must be for some of its stakeholders as well. the government has weighed in on this as well, saying, yes, obviously, we want to find out who is behind it that the priority for now is restoring

operations. once again, it does underscore the fragility of the supply chain that we saw during the pandemic. the longer this drags on, the more there is a risk that we could see a flow on for supply, potentially consumer prices, and implications for inflation as walk. >> paul allen in sydney there. thank you. as the potential fallout of cyberattacks on companies becomes too big to ensure, some insurers and issuers are seizing the moment. two major firms are said to be preparing cyber catastrophe bonds. su keenan joins us now. they have typically been built around natural disasters. now, we have them for cybercrime. su: it certainly looks that way and there has been a surge in the popularity of these bonds are due to the increase in all the natural disasters we have seen just in the past year, now with a surge in cyberattacks, it looks like the hackers are able to hold all 10 national firms hostage.

-- multinational firms hostage. bloomberg has learned that at least two firms, beasley, which owns specialist insurers across europe and the u.s., is said to be exploring a potential $100 million bond. axis capital is preparing to issue a 75 million cyber cap bond. and the market in general is likely to reach a record 40 billion this year. that is a huge number. a lot of that growth has been fueled by the impact of climate change. we have seen an onslaught. almost unprecedented number of typhoons, hurricanes, floods, wildfires, here in the u.s. and in canada, and increase, and in australia. all of this believed -- in greece, and in australia, all of this believed to be due to global warming. it almost breaks the model.

for that reason, the insurance market has always offered these so-called catastrophe bonds. it allows the firms to farm out hard to ensure risks to capital market investors, and in exchange -- this is the key part -- those investors get double-digit returns. now that we are getting a storm of cyberattacks, there's going, -- boeing, icbc. they seem poised to move out of the shadows of private dealmaking and into the public that market, and they are coming out possibly, according to what bloomberg sources are telling us, with some major issuances. >> i just love the term cyberattack bonds -- cyber cat bonds. su: when you look at the returns, yes, they could potentially be wildly popular. historically, investors are drawn to any kind of return that

trounces those of u.s. treasuries. we are looking at the swiss re global cat bond. it is an index that tracks the aggregate performance of cat bonds in u.s., european, and japanese currencies. compare that to the return of the treasury index which is actually down about 1% year to date, so there's really no comparison. issuers of cyber cat bonds want to protect themselves from financial losses that can follow a major cyberattack and that includes lots revenue, legal fees, regulatory fines, but it is a new frontier. one hedge fund portfolio manager says there is a lot of data in what returns are in insuring against hurricanes and other natural disasters. there is not a lot of data when it comes to cyber risk. it's much more difficult to price. still, many investors appear interested in getting exposure

to this new area. haidi: su keenan with the latest. plenty more ahead here on daybreak. this is bloomberg. ♪

haidi: anz group has warned of a challenging environment after higher interest rate spirit adam

haigh joins us now. we have sort of hurt a bit more optimism from its peers. how do the numbers stack up in comparison? adam: there is a little bit of disappointment there. really, what you heard from shane elliott and some of the commentary around the result today is kind of this pressure in the mortgage market and this idea that may be they went a little bit too hard into discounting and lost the margin there. the pressure on net interest margins really is a little bit stronger than may be some people were estimating going into this result. but on the other hand, maybe this is just emblematic of what we are seeing across the board. we knew the 2020 for calendar year was going to be a tough environment. we are at or near to. peak rates that is the view we heard last week. shane elliott this morning making the comments that yes, there's not a huge amount of stress within individuals and

small businesses and big businesses across new zealand, but also in australia, but clearly, there has been an incremental increase there. and how much more, as a lot of these mortgage holders rollover from these very low fixed rates they got during the camden make -- pandemic, how much does that have to play through to tightening the belt of consumers and the economic knock on effect we will see in australia next year? that is really what we have got to watch. of course, yes, they hike their dividend, but the potential for the dividend steel looks a lot more pressured. haidi: finance -- the dividend yield looks a lot more pressured. haidi: keep it here. this is bloomberg. ♪

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