banking. today, it is ubiquitous. i think anz and banks in general show we are really good at adapting technology. i do not know how artificial intelligence will be used but i am confident that banks will find a way. haidi: shayne elliott from anz group holdings. coming up, we will be digesting apples results as well. this is bloomberg. ♪ >> european central bank has downshifted for 25 point basis hike. he says it will not be the last. it is clear the central bank is not pausing and future decisions will remain data dependent. >> inflation may still being pushed up by the gradual pass-through of past energy cost increases. in services especially, it is still being pushed higher, also by pent-up demand from the reopening of the economy. >> china has ordered state owned enterprises to run security checks when hiring coming firms. they should include specific clauses on information protection security. tensions linger with the united states. taiwan's intelligence chief has warned that president xi's to surround himself with like-min

we spoke to the head of research at anz bank in australia.t's a sort of vote of confidence but we have to look at the interest rates, deeply negative... currencies like the lira, we have to look at the foreign exchange reserve. at the end of the day, political stability is a big driver of capital flows so hopefully this will give investors some hopes, particularly foreigners into the currency, but we have to watch how the market reacts. financial markets are closed for public holidays in the us and uk. hong kong reports trade data from april as they recover from extended coded lockdowns. —— covid lockdowns. china saw a contraction in manufacturing activity last month. south korea reports its trade balance for may on thursday morning. key data from the us is expected to show continued job growth. in singapore, the state investor says it has cut compensation for the team that recommended investing in the collapsed crypto exchange ftx. the chairman said although there was no misconduct involved, they are ultimately responsible for the investment

we speak with anz bank. we are asking advisors capital management how they are navigating this environment. this is bloomberg. ♪ is he hailing a ride to the concert hall? no. he's making sure his portfolio and retirement plans work in harmony. they want to adopt a child and build a new home. so they're talking numbers with their merrill adviser. she's not researching her next role. she's learning how to handle market ups and downs without the drama. personalized advice so impressive your money never stops working for you with merrill. a bank of america company. ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. >> both sides know there needs to be a bipartisan deal, it will be a compromise, i think we will get the debt ceiling race. >> no keel -- no deal gets done until everybody walks away from the table at least once. we are doing this in a global env

we spoke to the head of fx research at anz bank in australia.s a sort of vote of confidence but we have to look at the interest rates, deeply negative... currencies like the lira, we have to look at the foreign exchange reserve. in the short—term, the strong tourist season can boost this. at the end of the day, political stability is a big driver of capital flows so hopefully this will give investors some hopes, particularly foreigners into the currency, but we have to watch how the market reacts. almost three quarters of organisations in india were hit with ransomware attacks last year according to a british cybersecurity firm, which warns of a huge uptick on the previous year. for more, let's go to our india business correspondence. how does india compare to other nations when it comes cyber attacks? it’s it comes cyber attacks? it's much higher _ it comes cyber attacks? it's much higher than _ it comes cyber attacks? it�*s much higher than the global average of 66%. just like you pointed out, around 75% of indian companies have faced ransomwa

banking turmoil there. so what lays ahead ? earlier i spoke to anzh she told told me today's decision by the royal bank of australia will be a close one. financial markets and most economists are experts in the rba to pause but we think the decision would be a close one. inflation is still far too high but the key safety data shows inflation is coming down and probably was in line or slightly below what the rba forecast and there is economic data that will feed into their decision today. we have just been talking about how the us economy has been impacted by higher interest rate, and particularly the banking sector. how much has australia's economy being adversely affected by the cycle? the banking sector in australia has been very resilient we look across the economic data and see signs of softening but it seems there is a lot of momentum in inflation. the labour market remains tight as well and even though spending, continued spending, is starting ease and business indicators are starting to ease as well we are expecting that momentum will only the

watching dollar-yen, that weakness in the yen continuing as we have the likes of a number of banks including anz seeing further weakness for the japanese currency to come. one stock we are watching is qub e holdings, announcing an acquisition totaling one hundred 45 australian dollars. this is bloomberg. ♪ francine: in 1971, wire and plastic products plc made shopping baskets. in 2022, wpp, as it is now known, is the biggest advertising firm on the planet. sometime between then and now, specifically in 1989, mark read walked through the doors and played a starring role in that transformation. in 2018, read became chief executive of a firm in crisis. the man who had made the giant, martin sorrell, had stepped down. today, we speak to mark read about a new age of advertising and how to run a business fit for the 21st century. mark, thank you so much for joining us on "leaders with lacqua." what does it mean being an ads man, ad leader in 2022? mark: [laughs] well, i mean, our industry is at such an interesting phase, isn't it? we've just been through the pandemic, we have come out, i think, in man

right price at the radio at the right time, many of those customers may well decide to move banks, and anz'st it is clearly going to be a reasonable amount of volume. >> some of that offset in those numbers is the strategy of calling back a bigger chunk of the mortgage market. how has that been playing out, and how does that inform how you view competition in that space, but also how you view the broader housing market? >> pretty interesting question. for those who may not follow australia too closely, we had in some of the major cities, prices were up two times in recent years. as interest rates have risen, fraud has come out of those prices and prices are down 10% from their peak -- the froth has come out of those prices, and prices are down 10% from their peak. at the same time, incomes are higher. i would much rather have today where prices are moderate and people's incomes are higher. we have a good setting for today. obviously, we have to be cautious. the returns are not like they used to be five or 10 years ago. it is a tougher business. you have to be much more targeted. one of our p

these are the banks that we're watching. anzd extending those losses today and national australia bank falling yesterday. the most since 2020 on those comments about a peak in margins. we did hear similar sentiments from a.n.z. and maquary bank lower despite beating when they reported earlier today as well. shery: and jonathan garner, chief asia and strategist on morgan stanley. thank you so much for sticking around. that reaction in australian banks makes sense to you? jonathan: we're cautious on banks across the region and in australia and korea. some of the more developed market bank sectors. we are -- we're particularly bearish, i think when we look at australia, the further hike from the r.b.a. wars not expected by the market. and we have an inherently leveraged economy on the consumer side. and so that does raise issues going forward about the credit quality for the banks. and the sector globally is derating at the moment. as we said in the earlier segment we would rather be playing things like the china consumer recovery

we are looking at the central bank, saying they will keep fighting inflation. and the chief economist at anze expectation is they are not done fighting yet. haidi: let's get you to su keenan, with the first word headlines. >> president biden expresses confidence that regulators would reach an agreement to avoid default, even as republican lawmakers criticized his decision to travel to the pan for the g7 summit. fighting and congressional leaders have agreed to a narrow round of staff level talks in hopes of reaching a deal. he shortened his asia trip to continue negotiations. micron is poised to land $1.5 billion in financial incentives from the japanese government to help it make next-generation memory chips in the country. sources tell bloomberg the company will make chips in its facility in hiroshima using advanced tech. the deal is the latest step to bolster its domestic semiconductor production. to india, the top court has asked the markets regulator to close is investigation into the allegations against the adani group. those allegations include corporate law, violations of insider tra