haidi: to "daybreak: australia."

we are counting down to asia's major market opens. annabelle: the top story this hour, treasuries extending their april selloff is more hopes -- tech leads a fifth session of wall street declines. haidi: netflix share sliding after the bell, despite adding nine million customers but investors are worried about a muted outlook. annabelle: australia's treasurer tells us he still aiming for a second straight budget surplus next month, despite headwinds including softer chinese growth. haidi: it has been awake of various headwinds when it comes to at least optimism on equity markets. this is how we are shaping up. another down day is we set up for trading across major markets including here in sydney as well as korea and japan. futures pretty muted, about .7%

softer. we had again another run of solid income reading tomahawk's fed speak, the same form of that has caused this reaction across risk assets for quite a few sessions now. using sox trading underway, .4% lower, a bit of softness when it comes to nikkei futures, trading in chicago off by about .25%. we've had some reasonable data, youth unemployment remaining pretty steady in march and at least not attracting from that narrative we have seen bottoming out in that economy. annabelle: there's also that focus on earnings. netflix had its best start to the year since 2020, but still that stock is being punished here by investors today. what they are concerned about is

the outlook because that did come in a little bit weaker, the revenue forecasts than expected. so they will stop reporting from the first quarter of 2025. when it comes to subscriptions, we did see the company adding more than 9 million customers in the first quarter of this year. that was nearly double the average analyst estimate. a strong slate of original programming, the continuing crackdown on password sharing. our bloomberg intelligence analyst will join us in a few minutes. let's look at the broader session. futures coming online fairly flat, a little to the downside. it reflects what came through intraday. the big moose we had in the bond space, -- big move us in the bond space. a fifth straight day of losses for the s&p 500. the longest losing ground going

back to october of last year. oil leak in a little bit mixed, lots of hawkish fed speak. we heard from raphael bostic and neel kashkari come about saying no chance of a rate cut any time soon. there's also the question of whether they should be raised instead. that's something we heard from new york fed president john williams about. take a listen. >> my expectation is that interest rates are in a good place and at some point we would want to lower interest rates as the economy gets to the 2% inflation we are headed towards if the data are telling us we weeding higher interest rates to achieve our goals, we would obviously want to do that. it is not my base case. haidi: the managing partner joins us from our washington dc studio. christopher, great to have you with us. do you think we are seeing a marketing position at a point where we are taking seriously some of the concerns from fed

officials and those that think this final leg of the cycle when it comes to fighting inflation is going to be the trickiest part? >> i think that's right. i'm here at the imf spring meetings and the consensus correlated with 10-year yield's, as those rise there is a real sense that inflation is going to be stickier, yields will be higher for longer. the flipside of the consensus is that the u.s. economy is doing extremely well. you see that in the other data that comes through in the newsfeeds. the big concern right now is if the data continues to come in negative on the inflation reads, the point that we all should take in mind is that markets clearly got ahead of themselves earlier this year, expecting it to be a straight line down, extrapolating from that 9% a

year ago. and there will things that will make it bumpier from here. there is still a base case that ppi has cooled off a little bit, housing prices down a little bit today. the trajectory is still down. it would be a shocking moment if the next move were up at some point. that is not priced in, but a stickier, bumpier road back to 2% is what markets are expecting right now. haidi: in the meantime the trajectory for yields has been solidified a little bit more, obviously expecting more dollar strength. how does that play into the china picture? there has been a narrative for the goldilocks row story, there has been more room to run across emerging markets now. >> valuations are much more attractive in emerging markets. they are very attractive in china.

there is a sense that the u.s. economy is still doing extremely well. if that both attractive yields at this stage, good growth, valuations are little toppy, but there are areas in the market that are a lot more attractive than the ones that get all the headlines right now. in emerging markets, in spite of those valuations, they will be held back of what is going on in the u.s. by the strong dollar and also some sense of the geopolitical risks everybody is talking about but not quite sure how to price in. annabelle: what opportunities are you seeing that are not in the headlines right now? >> the headline valuation for the s&p 500 is 21 times forward earnings. if you strip out the big tech names that have done so well, it gets you back to around 18.

there are areas in commodities that are much more attractive at this stage. i think it would be a mistake to ignore some of these emerging markets, if you have the patience to look out into next year, but it will be a challenge for them between now and then. haidi: emerging markets are little constrained, especially if they do cut ahead of the fed. are there any specific emerging markets you like in particular? >> india is a story that has done extremely well so far. once they get through the election and some of the bumping is that comes with that, it is an economy that is growing extremely well. it looks like the current prime minister will continue to push through some of his structural reforms. that makes it a good longer-term story as well. it's also one of those countries because it is not caught in the crosshairs of the rising u.s.-china tensions, is less

likely to fall victim to any sanctions one way or the other. mexico is another market which is benefiting from both near shoring moves as companies try to diversify out of china, a government that has done a little bit in terms of structural reforms, we are hoping for more when the new president takes office later this year. haidi: you've talked about the bullish sentiment that has dominated the imf meetings, when it comes to the u.s. economy. what is less bullish, and what are you hearing about the geopolitical coal concerns going into the u.s. election and the fragility of the u.s.-china relationship? >> they are very bullish on the u.s. economy, bearish on just about everything else. a lot of that has to do with geopolitical risks, starting

with israel and iran and the exchange of attacks there. i think there still is a sense that those will remain contained in the oil prices remain in line . the market is not reading in more risk to the oil supply right now. there is a lot of focus on the u.s. votes this week on a to ukraine, ukrainian government and how that will play out. the since russia has made gains lately in ukraine and what that means for the future of nato. there is a real sense of what might happen to the european security structures and obviously in third place is the u.s. election, what a trump administration might do versus a biden administration. there's a lot of concern around trump proposals on tariffs, immigration restriction and tax

cuts, which if you put them into a single program, could be inflationary and could keep those -- the longer end of the curve higher for longer. annabelle: christopher smart there. switching back to netflix, you can see that big slip, despite the company reporting is best start to the year since 2020. the streaming giant added over 9 million new subscribers in the first quarter, nearly double what analysts had estimated. bloomberg intelligence says the blowout numbers are not enough to nudge sentiment, especially since netflix said it will stop reporting subscriber metrics next year. it does seem like the focus on forward guidance from the company is what is letting it down right now. >> absolutely.

we sell that blowout very strong, but as you look out into the revenue guidance for 2q as well as revenue guidance for the full year, he came in slightly lower than the street was expecting. in conjunction with the fact that they will stop reporting subscriber numbers all together starting in 2025 is really looking investors right now. -- spooking investors right now. haidi: our expectations just too high? we are still at a premium. >> expectations were definitely very high coming into this quarter, but if you peel it back a little bit, netflix is trading at roughly 27 times ebitda.

it's twice the multiple disney is trading at in almost five times the multiple the older media companies are trading at. but we think that is justified. the valuation is rich, but it is justified because this is the only streaming company out there that is profitable. they posted more than $7 billion in profit last year. compare that to the rest of the streaming group, those companies together lost $7 billion. so profitability here is not a key metric. netflix clearly has won the streaming wars in terms of profitability. you look at the earnings-per-share for the next few years, were looking at 35% growth. it definitely is justified.

annabelle: the reporting that sony could be teaming up with apollo global to consider a joint bid for paramount, the tv giant. what would be your reaction to that? >> paramount has kinda been in the midst of this whole mna saga. it has been playing out now for months. they are in exclusive talks with sky dance. sony coming in for paramount is great news for paramount investors. it will not just help raise the price for the paramount assets, but it also, apollo had come in with a bid for paramount but management supposedly was not sure about how the deal would be financed. now you have sony, which has deep pockets, investors will really cheer this piece of news. haidi: we have seen that, and

11% jump in paramount in response to that news. still to come, a workforce software management company has become the first tech unicorn in over 10 years. first, hear from the treasurer on the headwinds he is seeing. that conversation is next. this is bloomberg. ♪ i asked myself, why does pilates exist in harlem? so i started my own studio. getting a brick and mortar in new york is not easy. chase ink has supported us from studio one to studio three. when you start small, you need some big help. and chase ink was that for me. earn up to 5% cash back on business essentials with the chase ink business cash card from chase for business. make more of what's yours.

you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh

haidi: australia's treasure says

he still hopes to deliver a second straight budget surplus next month, but the degree of difficulty is rising. he outlined the headwinds his economy is facing. >> the global outlook will weigh heavily on our considerations as we put the finishing touches on our third budget. if you take a step back, you see we got inflation lingering here in the u.s., growth slowing in china. tensions rising in the middle east, and longer-term pressures as well, supply chains are straining and the world is fragmenting and transforming in relation to the net zero economy. these sorts of considerations are a big feature of the discussions here in washington dc and big factors as we put the budget together and hand it down next month. >> we are within striking distance of a second surplus. >> that is certainly our goal

but we are not quite there yet. the degree of difficulty on the second surplus has come up a little bit, partly for some of the reasons you rightly identified in your introduction. the labor market is softening a bit. we've got all this global economic uncertainty. that does weigh on our budget but we are still aiming for a second surplus. the personal plus last year was the first one in 15 years in our country. we see it as a really important way to put downward pressure on inflation but get our budget in much better condition, as a buffer against global economic uncertainty and make sure we are creating foundations to find our priorities. >> do you expect this to we the last surplus for a while? >> certainly the pressures on our budget are intensifying as we go into the medium term. but we are quite pleased with the progress we've been able to

make. some modest but meaningful tax changes and making sure were taken the most responsible approach we can and the strength of our labor market. the revenue upgrades in the budget will be much smaller than we have seen in the last couple of budgets. there will still be a premium on responsibility and an on security. we will ease cost-of-living pressures with the tax cut for every taxpayer but a big emphasis on investing in the future as well. >> you mentioned inflation. what is your government doing to help the central bank in its effort to cool inflation? >> first of all, making sure we are not adding to the problem, running a very tight ship when it comes to the budget, a very responsible budget. a second surplus if we can get there to take the pressure off inflation.

we've also designed cost-of-living help so it puts downward pressure on inflation rather than adds to it. we have been giving people relief from their electricity bills and providing rent assistance, getting the cost of early childhood education down. all of that cost-of-living help is taking the edge off inflation rather than adding to it, so that is important as well. haidi: that was see -- you can watch us live ncr past interviews and our interactive tv function, tv . become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only, so check it out at tv . ♪

safari? hot air balloon ride? swim with elephants? wait, can we afford a safari? great question. like everything, it takes a little planning. or, put the money towards a down-payment... ...on a ranch ...in montana ...with horses let's take a look at those scenarios. j.p. morgan wealth management has advisors in chase branches and tools, like wealth plan to keep you on track. when you're planning for it all... the answer is j.p. morgan wealth management. hey you, with the small business... ...whoa... you've got all kinds of bright ideas, that your customers need to know about. constant contact makes it easy. with everything from managing your social posts, and events, to email and sms marketing. constant contact delivers all the tools you need to help your business grow. get started today at constantcontact.com constant contact. helping the small stand tall.

♪♪ discover our newest resort sandals saint vincent and the grenadines, now open. visit sandals.com or call 1—800—sandals.

annabelle: china's ministry of commerce has slam to your threat to impose new restrictions on a steel and aluminum products. it says washington is politicizing economic issues and undermining the security of the global supply chain. president biden is proposing 25% levies on some of the products as part of an ongoing review. analysts at the steps would have minimal economic impact. intellectual property protection is also a key focus for american and chinese officials amid trade and tech tensions. the undersecretary for intellectual property met with a top chinese official and we ask what message she delivered. >> the message was that we need strong intellectual property protection here in china. we spoke about innovation. he communicated the importance of innovation to china and i spoke about u.s. companies

interest in being here in china, but being successful. they need a strong i.t. ecosystem in order to be successful. >> i've been covering china for more than 30 years, and every year, the threat of ip theft has always been a big issue. it seems to be not at the four right now in u.s.-china relations, but i'm guessing that it is front and center of your attention. where are the biggest sticking points right now? >> one of the big issues is transparency. as you mentioned, it's always been somewhat at the fore in terms of interest in u.s. companies. there have been some improvements made in china when it comes to legislation and some of the counterfeiting issues, but we are still seeing major issues with regard to transparency and new issues emerging when it comes to

counterfeit products. and then some trade secret and trademark issues as well. >> this was at the forefront of the phase one trade deal under the trump administration and was also dressed by xi and biden in november on the sidelines of apec in san francisco. the problem always seems to be enforcement on the chinese side. it's not getting from discussion to real practices in china. >> that's correct. there have been a lot of legislative moves within china. since 20/20 20, we have commented on over 45 measures in china, so we are starting to see some positive progress. but it really comes down to implementation. enforcement is always an issue. we are seeing some improvements in enforcement when it comes to counterfeit products, but there are still issues when it comes to online sales and some

protectionism we are seeing in local communities. >> where are the biggest infringements that you can see? obviously it is much more sophisticated now than it was 20 years ago when dvds were being pirated and sold on the street corners of beijing. it is probably higher value items now. >> it is. for livestreaming, some of the issues before were more platform related. we still have those issues, but new modalities are coming out, including livestreaming where product is offered for sale and then disappears. >> have you moved the needle? >> it is a process, and it's just continued dialogue and making sure we are hurt on key issues, and government officials

understand the impact of what is happening in china. we will continue to push for progress. haidi: coming up next, quarterly subscriber metrics raising questions about netflix growth. this is bloomberg. ♪ her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit...

unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for.

annabelle: this is the picture as we get japan cpi. march core consumer prices rising 2.6% year on year.

2.6%, slowing from the 2.8% we saw in the previous reading. the survey was for 2.7%. not quite as reflationary. stripping out fresh food and volatile energy, of course crude and oil prices have been trending higher. we see a reading of 2.9%, also slightly shy of expectations. 2.7% softer than that 2.8%. broadly we are seeing that softening from the previous month as well. this just underscores perhaps the willingness of the bank of japan to continue to wait. we have seen very little signs of them being in a hurry. the japanese finance minister in the meanwhile, who we hear from about every morning on the yen, says it is the breakup with the u.s. it is one of the many factors weighing on the japanese currency which is still hovering at about 34 year low against the dollar. >> i don't believe that the rate difference alone is setting the

current level. the level of exchange rates is not only determined the interest -- difference in interest rates but also economic conditions, market sentiment, and speculative moves. haidi: let's bring in michael wilson. it has been a perfect storm in a lot of ways because we have seen some haven demand not playing out the way we would even with escalating middle east tensions. so there is not much policymakers can say or do at the moment. michael: i agree. i tried something this week in that trilateral combination between yellen and the head of korea and japan. it was like a collective thing, to try and introduce the coordinated intervention to the narrative, which is interesting. but i think as a coordinated effort, much of the heavy

lifting will be down to the boj anyway. asian currencies are hurting as a result. it is a case that the dynamic, or the indirection between the u.s. economy and the rest of the world is playing out. until that burns out for the rate cutting cycle kicks in, i don't think there is a whole lot they can do. if you noticed, the yen itself is probably down about 9% year to date. but because of the increased jawboning, it is only down about 2% month to date for april. you can see the effect. it really is slowing down the yen's descent, as it were. but that can only last so long. if the data continues to come in hot for the states, fundamentals will dominate.

i think the boj and the mof are trying to create that narrative where there is a disconnect in the fundamentals which would give them a reason to intervene. and they have got that tacit approval out of the g7 when candidate said everybody was on board for me g7 per if. but as far as asia is concerned i think it is going to have to come from the ministry of finance. but maybe not until the end of the year. we heard overnight two fed speakers, bostick just said we see the first rate cut not until the end of the year, and kashkari said it is plausible the fed might not cut at all this year. that puts the ministry of finance's plans in a bit of a wreck. especially if they were to say that. and maybe they are shoring up

the market. that the dollar is still going to be pretty warm, if not hot. annabelle: it is interesting because i am also wondering how much you think that they are really concerned by the weak yen. one of the impacts of it of course is that it could implant -- impact because of high costs. we had inflation data pretty much in line with estimates. a little softer. so if we see inflation trending in line with what the boj expects which is a bit of softness into year-end, the you think that removes perhaps any urgency for them to act with real force? michael: you are right, it does validate the fundamentals. where you cannot be trying to push a currency higher when the inflation backed up is soft.

he spoke to those intentions this week as well. he said the inflation moves and the pace of rate hikes is going to be extremely shallow. it will not be a steep recovery. so that does figure this is going to be admitted of a slow burn. maybe they are trying to slow the descent of the yen and asian currencies like the yuan and the rue pia. rather than have hedge funds ganging up on those currencies knowing they don't have a war chest like the bank of japan. and one of their best weapons is official speak. like i said, that only gets you so far. the shelflife of that is probably getting shorter as we where on. annabelle: that was fx and rates reporter michael wilson. thank you for your time. taking a look at how markets are faring, watching japan's futures

in particular. we are less than 30 minutes out from the open. already down more than 1.2%. broadly of course there is a lot of red on the screen and attracts the u.s. session where we saw the u.s. session falling for their fifth straight day. a lot of different factors weighing in on that, but primarily it is hearing from the likes of williams, bostick, kashkari, all of them pouring cold water on any expectations for rate cuts anytime soon. williams even responding to a question about the odds of a hike. that focus plus what we have with earnings. netflix is the name we are tracking in after-hours because it added over 9 million customers the first quarter of this year, nearly double analyst estimates. it also posted its best start to the year since 2020. you can see we have shares in after and late trade.

investors are not liking a subdued second-quarter outlook from the company. let's get analysis with jamie lumley from third bridge. is this what stands out to you, this weak outlook and removal of subscription figures as well in the future? jamie: a couple of interesting things to parse through from this report. we must remember that expectations for netflix were incredibly hybrid coming out of a blockbuster end of 2023 with really strong numbers both for subscriber gains, for profitability, net income. netflix came with a lot of momentum into the quarter. and they did deliver on a number of key metrics. 9.3 millions of scuppers. substantial expansion of their margins. that is something in which their industry peers will be envious of. but there are two areas investors will be puzzled by. one is the relatively weak q2. q1 is usually more seasonably

affected. also the fact one of the key metrics investors look at for netflix, subscriber growth and average revenue per subscribers, are no longer going to be there a year from now. so that does cast some doubt and questions about why netflix is doing this and how they are thinking about their growth from here. annabelle: there are two factors being cited for the jump in subscriptions. first you have the crackdown on password sharing, then you have a very decent slate of programming. how long do you think that the password crackdown sharing part can continue to contribute in particular? jamie: the crackdown on password sharing is definitely an interesting initiative. if we look at the growth net has seen it has definitely already had a substantial impact. what we are hearing at third bridge is of the 100 million or so households that were sharing passwords. when netflix launched the

crackdown, they could convert about 50% of that, to get them to be paid users engaging with content and not just watching for free. we think about the numbers we have seen, that would indicate there still a number of quarters we could have this be a growth driver. but of course the question is how long it will take for that to happen. how much has netflix already tried to get these people on board? that part there is uncertainty around. haidi: the fact we are seeing disappointment from investors, is that because the narrative is shifting from user member netflix to free cash flow to revenue to margin expansion, and identifying the strengths and weaknesses of this company on different factors now? jamie: there could be a couple of reasons here. one of the reasons netflix has always differentiated itself on is the pure scale and showcasing every quarter how it has industry-leading number of

subscribers compared with competitive sets, the disneys, one or brothers, paramounts. no longer having that metric may be changes the way people think about this company. at the same time it is not necessarily bad to be focusing on netflix's operating income in the revenue growth. one of the key aspects of netflix, they are the only streamer in the u.s. which has consistently delivered profitable numbers in a streaming business. this is something none of the competitive set have gotten to appear warner bros. discovery is close, disney is hoping to get there this year. but it will take them years even if they reach break to even come close to replicating netflix's margins. netflix can still stand out based on the progress they have made so far. haidi: that is interesting because you talk about how behind the competitors are. if competition is not so much of an issue, if the content pipeline is still robust, is there a need for investors to worry about a growth plateau if

that is what we are assuming from the change in reporting? jamie: there is always the worry of what happens if perhaps netflix starts to not fire on all cylinders from a content perspective. one of the things we hear time and time again is a lot of these platforms are only as good as their last show or movie, which can be a little tough considering the wealth of the library platforms have. but people want to come back to a platform to see what else is there, and if there are any slip-ups, that can always be a risk. more importantly if we think about the trajectory from here, the ads is a potential growth driver for the company but it has not scaled to the same degree after the full crackdown on password sharing people wonder exactly what the growth strategy is. let's not forget before these initiatives were launched, netflix had some choppy quarters when it was not able to fully deliver consistent subscriber growth numbers. as the business continues to mature, there could be challenges in driving growth.

they have to continue to execute to stay in front of its peers. annabelle: netflix might be lower in after-hours but a stock moving the other direction is paramount. sony could be in talks with apollo global management to team up for a bid for the company. do you see positives in this positive transaction -- possible transaction or deal? jamie: we will have to see as more details come out to fully understand what this could indicate. but it is a really interesting move. if we think about the future of paramount, all indications is that it is in play. ownership wants to find a deal. there has been pushed back to the current potential deal with sky dance where they are in a 30 day explicit window from the existing base. having some other offers could potentially sway the ultimate future of this company. we have been hearing what would make the most sense for paramount is to sell off assets in part.

it would be interesting to see what an ownership structure would look like with sony and apollo. sony is one of the studios which did not enter the streaming space. it would be an interesting move to bring in the pipeline of content they had in their library, their studio capabilities, and combine that with paramount and see what might happen with paramount plus. people are not quite sure what will happen to the non-studio assets. there are a lot of traditional media -- immediate assets which are easy to run. there are some interesting dynamics which could be in play if sony enters the discussion here. haidi: jamie lumley, senior analyst at third bridge. coming up, the first australian tech unicorn to emerge since early 2022. we will be speaking with the ceo about their strategy. this is bloomberg. ♪ ok coming in.. big orders! starting a business is never easy,

but starting it eight months pregnant.. that's a different story. i couldn't slow down. we were starting a business from the ground up. people were showing up left and right. and so did our business needs. the chase ink card made it easy. when you go for something big like this, your kids see that. and they believe they can do the same. earn unlimited 1.5% cash back on every purchase with the chase ink business unlimited card from chase for business. make more of what's yours.

sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh haidi: our next guest runs deputy, a workforce management software maker. the platform says they service over 330,000 workplaces covering 1.4 million shift workers globally. the company recently passed the $1 billion valuation mark, making it australia's first unicorn to emerge in over two years.

joining us from san francisco is deputy ceo silvija martincevic . great to have you with us and congratulations on this milestone which has progressed over the last few weeks. i guess, what does it mean to be the first unicorn emerging out of the australian tech seen in over two years, and where are you putting that money to work? silvija: thank you so much for having me. it's an important milestone that deputy reached. and it is an overnight success took 15 years to build and many wonderful customers and employees that supported us on this journey. but what is more important to us is the impact that we have on the chinext that we serve -- on the community that we serve. deputy is a work platform and we do that globally. we help with our technology. nurses come up or, hotel workers -- why is this important?

shift workers are 80% of the world's workforce. and yet less than 1% of tech investment has gone into this space. it is a massive market failure. and we are incredibly excited to build technology to help shift workers get productivity and get engagement same way that we do. and we are incredibly, incredibly excited that this next decade is the decade of digitizing shiftwork. we have seen office workers get so much technology so that we can be more connected network. and we hope that deputy gets to build that for shiftwork. we think we can build truly a generational business that is worth multiples of aliens of dollars. -- of billions of dollars. haidi: this is obviously an australian company you helm. can you give us thoughts on the

overall environment for fundraising across the sector? we have seen more of a pickup across vc investing. we see ipo's and deals are picking up not just for australia, but globally. silvija: it certainly has been a challenging environment over the last year or so. but it seems that the investor appetite is increasing. but here is what i found interesting. deputy of course was born out of sydney, australia. what i found interesting was that companies that are growing in australia are generally bootstrapped and take a little bit longer to take capital than what i have seen in silicon valley. so i am incredibly, incredibly encouraged and excited about seeing innovation in australian. i think also there has been a very vibrant vc community built here in australia over the last 10 years. and i hope that australia used

to be an importer of technology, i hope that with the likes of deputy that we get -- that australia becomes an exporter of technology. what helps is local investment community, as does a very vibrant university system and great entrepreneurs that want to solve big problems. annabelle: taking longer to accept capital, do you see that is something that constrains australia's tech landscape? silvija: not necessarily. i actually think that we see this across the board, that there has to be a balance between topline growth and bottom line. we forget that, and we go through these cycles. but what i have seen in the australian ecosystem is there is a higher focus on financial stability.

that is certainly how deputy has grown. we have been trying to tackle this massive problem of digitizing shiftwork for 15 years and have now been profitable for the last two years. and we are really proud that we are able to both grow but also do so responsibly. annabelle: would you consider listing, or part listing in the near future? and where would you choose? would you look at australia, or would you look at the u.s. instead? silvija: right now we are absolutely heads down on building a lot more products that help small businesses and that help shift workers. we are also really focused on building partnerships with other platforms. and as it relates to the future, we care a whole lot about impacting our community and keeping our options open. annabelle: really great to have you with us.

silvija martincevic, ceo at deputy. haidi: more ahead here on daybreak australia. this is bloomberg. ♪

>> every time we come up to one of these halving events, it comes back to supply and demand. >> the crypto industry goes

through a cycle. it is going to be expected. there will be volatility. given geopolitical tensions, given the interest rate environment, the inflationary environment. >> obviously bitcoin and crypto right now in general are part of the global financial system. we are not completely disconnected from what is happening in equities, for example, or monetary policy, or what is happening in the geopolitical environment. >> we have been preparing for many years. our business requires long-term planning. and these halvings are known events. the evolution of mining has really changed from previous halvings. >> a lot of investors are eagerly anticipating to see the market reaction. annabelle: that was the crypto industry ceo's talking to us about the bitcoin halving event. we are very much on the countdown to that taking place. if you different ways we can look at it this data here coming

from: gecko. they are saying it is one hour and 32 minutes away at this point. of course the price action that we have seen, bitcoin is trading very close to its record high at this point. the question has been what kind of bullish momentum we could see from it, whether that is already being priced in. deutsche bank saying at this point the halving is already baked in. they are focusing instead on different implications in one of the things they are looking at is bitcoin mining instead. given that when you have halving you get less reward for mining tokens and that will put pressure on unprofitable miners who have to exit the network. they are expecting the network to consolidate. look at publicly traded firms they could be the ones best positioned to take market share. haidi: we will be watching that

but also look at some news we are watching when trading begins for this friday. sk hynix among the asian semiconductor stocks that will be in focus. we could see declines despite the resiliency of that last close. tsmc scaling back its outlook for a chip market expansion so that could weigh on some names. sony and apollo talking about a joint bid for paramount. we will be watching for some entertainment and streaming stocks. netflix with the best start to the year since 2020. a muted outlook change when it comes to reporting, investors were not that impressed. this is bloomberg. ♪ ♪ ♪ ♪ ♪ ♪ give into the rhythm of the islands

and delight in a caribbean state of mind. visit sandals.com or call 1-800 sandals.

annabelle: we are counting down to asia's major market opens.

there is quite a lot to be pouring cold water on asian equities in the session today, especially when you take a look at some of the hawkish fed speak that has been coming through. haidi: yep. a mixed picture when it comes to earnings. mixed even when the numbers are strong. netflix, you see how high investor expectations are. it will be interesting to see how that plays through some entertainment related stocks. also watching chip stocks in the open with muted commentary, the pullback from tsmc. likely to see every action from hynek's in this part of the world. annabelle: and asml earlier this week i'm great outlook sprint japan -- we are tracking the japanese yen, continuing to watch any levels or signals of intervention we get from japanese government officials. many of those in washington from the -- for the