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tv   Bloomberg Daybreak Australia  Bloomberg  November 21, 2021 5:00pm-6:00pm EST

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>> a very good morning and welcome to daybreak australia. we are counting down to ages -- asia's market opens. >> beijing could be getting a little uncomfortable with the rise of the yuan. authorities are telling banks to cap speculation on currency trading. >> the u.s. and japan may tap
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into their oil reserves this week as policymakers look to rein in prices. >> protests in europe look to push tougher covid restrictions. hawkish fed remarks. felt across the markets. u.s. stocks falling on friday. although the nasdaq did outperform, it was really the economic sensitive stocks like financials and energy that led the declines. the dollar index muted going into this week evan it is -- given it is a thanksgiving shortened week in the u.s. we had crude falling towards the $75 per barrel level. the prime minister in japan talking about releasing and tapping its oil reserves. at pushed oil markets down. -- that pushed oil markets down. it is really about what is happening at the fed and leadership they are because we
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are expecting a leadership of who will be leaving the fed after february, after the term of chairman jerome powell's -- after the term of chairman jerome powell ends. we are expecting a decision before thursday. it does not matter who becomes the new chair, it will be a tricky landing. including the strong jobs market while at the same time disappointing female participation rates not to mention minority dissipation rates as well. >> it is the runaway inflation story. perhaps less so in asia but we are still seeing pockets of strong economic growth. and employment starting to recover. the hawks will be back in focus. we are expecting that they will raise rates and by how much. we did get inflation as well as
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market numbers coming in better than expected. looking ahead to the bank of korea. a 25 basis point hike flag there as well. the governor saying there should be further tightening in the next meeting. and the pboc has a different set of issues. looking ahead to the prime -- the loan prime rate. >> especially with the chinese yuan at that six year high. it reached -- it is not surprising seeing authorities come out and try to talk down the strength. the pboc asking financial institutions and enterprises to step up its exchange rate risk management. refrain from making one-way bets on the yuan. we heard from the exchange committee talking about the
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strength of the yuan. one more signal that authorities may be becoming more uncomfortable with the strength there. >> in china come there has been the covid zero strategy that has managed to manage the virus. we are not seeing that in many other economies particularly across europe. who high numbers particularly in places like austria and germany. we are also seeing more protest against virus restrictions in europe. we have had it second night -- we have had a second night of violence in the netherlands. on monday, a national lockdown going into effect in austria. there is also discussions about the vaccine mandate in germany as well as more restrictions and in the u.s., we have the booster shot being approved for everyone over the age of 18 and dr. anthony of how she is encouraging people to get that booster as well.
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let's get more on our top stories. we have stephen engle and others. steve, what is problematic here about what we are seeing with the levels of the chinese currency? stephen: we saw the yuan rising to a six year high against its major peers. we remember what happened in 2015, august, the central bank did a sudden devaluation sending the markets globally into a tizzy. this is the dilemma that the chinese authorities have right now. the yuan, the spot rate onshore, 6.8 and change with a slowing economy as well. the yuan has been gaining strength on the back of onshore bonds.
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they are growing increasingly concerned. we had the pboc last week asking financial institutions and enterprises to step up exchange rate risk management and to refrain from making one-way bets on the renminbi. now we have the cfec set up in about 2016 believe with the backing of the pboc. essentially, it came out saying, according to people familiar with the situation telling bloomberg news, that they are urging banks to limit speculative fx trading to be risk neutral with trading fx for themselves and clients and they are advising banks to better track proprietary trading. authorities are thinking of 2015. i am not saying there will be a shock devaluation anytime soon but they are doing their due diligence in making sure there risk management is in place. >> on the broader economy, we
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are hearing from a pboc advisor that the chinese economy could enter a peer of quasi-stagflation. >> i the slowing growth, that and inflation, look at the ppi, 13.5% in october after 10.7 percent in september. you do have rising prices and a slowing economy. we are hearing from a pboc advisor speaking yesterday at a conference, i believe it was in beijing, he said the economy -- it is a likely scenario that if the economy enters a peer yoda of stagflation, under the circumstances that i just outlined. he says if demand remains weak, ppi stays high, corporate profits are squeezed and existing risks in the economy are released too soon, he said such a scenario is very likely. >> when it comes to the virus,
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it is interesting because a few months ago with the opening, it felt like there was no going back. in europe, they are going back potentially to lockdowns. >> i think that is why you see this level of frustration and anger. in austria, there were twl knights of riding in rotterdam. today, you saw clashes between the police and brussels. when -- with protesters. people thought vaccines were coming. people thought this was going to be it and it turns out it is not. >> so, jim, of course, all of this will have an impact on the broader markets including oil. we just heard from japan that perhaps we could see a joined release of all reserves. what do we know? >> that is right. that comes from an individual that said the u.s. and japan
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could be a number of days away from a joint announcement. to ease the upward pressure on oil prices. prices have come off a bit from the seven-year high we saw in october, $85. but as steven mentioned, we have inflation issues in china and the u.s. and japan with the fed talking about 10 chile bringing forward rate hikes amid a lot of speculation in the analyst community that a bear market might be the case. politicians do not like to see inflation higher especially with the recovery from the pandemic being on fragile grounds amid a resurgence in the coronavirus. you just heard about europe and the u.s. situation -- still in the balance on that front. it is clear why politicians in major oil consuming countries want to see that price come down. that is what these moves are
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guarding against. the other factor is they want to ease some of the power that the saudi's and russians have over this market. they have been a little slow in terms of increasing production. that is the leverage, the bargaining chip to try to persuade them to put more oil on the market. >> we will get more on that story and the next few hours and we will get more on the virus situation as well. jim von, jim fisher and stephen engle. let's look at the asian markets. given all of these concerns over the virus resurgence more broadly. trading in new zealand, we are seeing a little downside pressure. that brings a high likelihood of more rb eight -- rbc tightening -- rbz tightening.
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a rate rise is in question. take a look at sydney. futures down 0.6% indicating a little bit of pressure as we get into the start of trading this monday. chicago nikkei futures flat at the moment and in seoul we are seeing positivity, 0.6%. and we wait for a bank of korea decision. governor lee has been pushing for another round of tightening. let's get to vonnie quinn. >> japan is reportedly set to your mark $6.8 billion to bolster domestic chipmaking in an extra budget. according to a newspaper, the funds will be used to strengthen domestic production. research and development, ok facilities and reduce carbon emissions. the paper says the first project is likely to be tsmc's factory.
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bloomberg sources say the u.s. has shared intelligence with european allies that shows a build up of russian troops. we are told the information backs up u.s. concerns about the intentions of vladimir putin. european -- the kremlin denies any aggressive intentions. china's competition watchdog has ordered companies including alibaba, tencent and baidu to bring a total of $3.4 million in fines for antitrust violations. the administration says the company's must pay $78,000 for each of 43 breaches. the penalties are smaller than those handed out earlier this year. 2.8 billion dollars for alibaba. the international olympic committee chief says he held a 30 minute video call on sunday with chinese tennis star and she
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assured him she is safe. she told him she wanted her privacy respected. she disappeared from public view earlier this month after alleging sexual assault ia former chinese vice premier. photos released over the weekend failed to quell worries about her welfare. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. >> blackstone doubles down with a sweetened offer for crown resorts. we will discuss what that means for the casino operator with steve johnson. up next, we examine the prospects for a faster taper. jason schenker. this is bloomberg. ♪
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>> let's take a look at the week
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ahead. tuesday, key u.s. and eurozone manufacturing data. grappling with rising costs because of supply chain constraints. the rbnz decision this week. and shoppers but where, black friday deals are expected to disappoint. americans should expect weaker seasonal discounts after thanksgiving day. what a shame. >> [laughter] we were looking forward to those discounts and we may not get them. i head of that, the president expected to announce his nominee for the next federal reserve chair. jerome powell remains the favorite though odds for brainerd who markets see as a more dovish option remain.
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and other vacancies also need to be filled. let's hear what some of our guests think will be the implications of opec. >> between governor brainerd and chairman powell. >> i don't see much daylight between them. >> fed monetary policies are still extremely loose. >> inflation is definitely running hot. >> whoever comes in is going to have to tighten it. >> the emphasis is on the regulatory policy. >> governor brainerd. >> chair powell. >> whoever is in the spot, has a hard job ahead of them. >> a senior senate democrat has suggested that uncertainty over who will run the federal reserve has limited action on -- our next guest says things are too
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rosy. always great having you with us. take a look at the gtv chart on the bloomberg. what difference could this nomination make for the markets? jason: i think obviously there is going to be less risk if we were to see powell renominated for this role and remain the chair. we are at a point of uncertainty right now. that leads me to believe that we will see jerome powell stay and that role. there is a lot of inflation we have seen from the supply chain, commodities, aggregate demand -- there is a lot of upward price pressure and we have likely not seen the peak levels of year on year inflation yet. >> whether there is a new chair or ego data, this is a thanksgiving shortened week but it is heavy on the calendar. what are you watching? jason: there are a few different
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pieces. if you are looking personal income and spending, those numbers will be important especially after the strong retail sales number we saw for october. jobless claims will be important to watch. we saw a new record lows for initial claims and continuing claims since the start of the pandemic. that is a good sign because if the fed needs to accelerate the process of tapering its qe program, something we expect at the next decision on december 15, the jobs situation will need to be in a good place. the other thing we will see this week is more fed members socializing that idea of a more rapid qe paper. we heard from a couple of different fed members last week and i think we will hear from more in the next week or twl. if that idea gets out there and is repeatedly underscored, that will increase the probability
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that the tapering announced in december will be quicker than the pace announced in early november. >> we are also hearing reports that japan and the u.s. are planning a joint strategic reserve. we have seen prices come down in the last few days on the nerves about a potential release. does this address the supply demand dynamic? jason: i think the biggest thing about oil prices is that commodities, especially oil -- if we look at what is going on in the marketplace right now, part of the reason the oil price might have fallen is that the covid cases in europe have gone up a lot. we have seen the different restrictions undertaken to try to get covid back under control. oil demand will be week if covid is a problem. in the u.s. for example, we have seen new recent post-pandemic highs for the number of people going through tsa checkpoints at
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airports. that means demand for flying will go up and even if oil prices are low right now, next year's summer driving season could be a whopper. we could see a lot of oil demand from refineries at the end of q1 and beginning of q2. even with these things going on in terms of supply and strategic reserves, the big story for oil has been for the last year and a half plus and will be for the next year, covid. >> i feel like you just skipped the next six months and went into the summer of next year. you mentioned the european lockdowns and the inability of hospital systems to cope with these unbacked and cases. does this create a suppression and demand? -- in demand? jason: i think it will pull back some of the demand for europe -- for oil in europe.
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it is weighing on the euro especially in a situation where we are debating how quickly the fed will tighten accommodation. as we see the u.s. taking a more hawkish stance going forward, inflation remaining an issue in the u.s., the dollar could see some further upward pressure especially if we see fed members up there rate expectations will be part of the forecast published on december 15. we do expect there will be more aggressive forecast from the fed members for what they expect for rate hikes over the next couple of years which means if covid is still a serious problem in europe, you could find the euro coming under more pressure as we see the hawkish story turning more hawkish for the fed. >> jason schenker joining us. we do have breaking news. the ceo saying he would consider leaving if he cannot fix the
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culture. this is according to reporting from the dow jones. he is holding meetings with senior leaders telling colleagues he would consider leaving. this is the chief executive officer telling senior managers that he would consider leaving his post if he cannot quickly fix the cultural problems at the videogame giant. he has been a leader at activision for three decades. he stopped short of saying he would step down in this meeting that was apparently held on friday with executives. leaving the door open if the conduct issues were not fixed with speed. he has been facing criticism from employees, the investing community and business partners over how he handled the allegations of sexual misconduct and some have called for his resignation. we will get you more details on that story as they get to us. a lot more to come here on daybreak: australia.
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this is bloomberg. ♪
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>> here is a quick check of the latest headlines. kkr has offered to buy telecom italia for about $12 billion in what would've been the largest telecom purchasers ever. kkr's preliminary cash offer is 46% premium to friday's close however, we are told telecom italia's largest shareholder is likely to oppose the offer which saudi aramco says it will continue to look for investment opportunities in india. that comes just days after reliance scrapped plans for a sale to the saudi giant. for a potential 20% stake in the reliance oil unit. reliance says it has a
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long-standing relationship with aramco and will continue to look for a partner in india. softbank backed company plans to conduct test rides across india. initially, they are only open to those that have purchased or reserved scooters but the company is extending the offer to all customers. high fuel prices are having consumers consider switching to electric vehicles. >> let's take a look at how markets in asia are shaping up. we have u.s. stocks falling on friday's session given concerns about hawkish federal reserve comments. we are seeing kiwi stocks down and sydney futures are also under pressure. this after we saw some pressure for emerging market currencies. the aussie dollar for example fell after three weeks of decline versus the u.s. dollar.
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we do have some key central bank decisions across asia. still ahead, u.s. intelligence agencies step up their warning about russian plans for potential ukraine invasion. the details are next. this is bloomberg. so many people are overweight now, and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours.
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>> you are watching daybreak australia. i am vonnie quinn with the headlines. china's foreign-exchange committee is said to be urging banks to limit currency trading after the yuan climbs to a six year high. they are advising lender to improve risk management and of course any abnormal transactions. the proposal was sent to 15 chinese and overseas banks that cover more than 19% of china's fx markets. japan in the u.s. may reportedly make a joint announcement on the release of oil reserves this week.
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the japanese government is considering tapping part of its excess reserves. a move that the biden administrator is also weig hing. to tackle high oil prices. a nationwide buyers lockdown in australia goes into effect -- in austria goes into effect on monday. tens of thousands rallied peacefully in vienna on saturday is the government announced that all adults must be vaccinated by february. on sunday, belgians released a water cannon to disperse thousands of protesters. dutch police arrested dozens after clashes there. -- has raised its forecast for the year and next year on the back of a tourism revival. the economy is set to expand his much as 1.2% this year, exceeding an earlier forecast of 1%. it could hit 4% pure thailand reopening to vaccinated
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visitors. more than half is fully inactivated. -- innoculated. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: sources said the u.s. is sharing intelligence with european airlines that shows a buildup of russian military preparing for potentially rapidly large-scale push into ukraine. our international government international report has been tracking this. do we have any idea at this point what president putin's intentions are here? >> that remains the big mystery because what we are clearly seeing is a very dramatic buildup of russian troops in various parts around ukraine that would facilitate a rapid large-scale invasion potentially as soon as next year. the one thing we do not know is what putin actually intends to
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do with those troops. brinkmanship. he has built up troops in the air before to provoke and cause trouble -- in the area before. the economy is not big enough to be a big player on the stage. and nato, he's worried about what nato is doing with ukraine. whether this is a warning signal to tell nato to back down from the area or whether there is an intent to make good on an invasion potentially is the big question. either way the u.s. is not taking any chances. which is why you can see these warnings escalate, and the pressure is mounting to try to turn him -- to deter him from whatever it is he might actually be intending. shery: this could be a fresh challenge on multiple fronts for the biden administration in terms of their willingness to engage in military -- in the military. ros: of course the u.s. has recently engaged in a messy,
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chaotic withdraw from afghanistan after 20 years of being bald down -- bogged down there. the u.s. president made it very clear that the u.s. is no longer interested in being heavily engaged in conflicts far from its home shores. so, having made that very clear, the russian president may say , are you going to follow through if i went into ukraine? that is a big question to the u.s. at the same time you have very domestic considerations on his mind. his popular to has been falling at home. he is still trying to get a very big economic package through congress, and that is bogged down in the centipede he has focused on that p does not want this distraction of having to deal with ukraine as well. yvonne: the bloomberg international government international editor in p approach s mark cities across the u.s. after kyle rittenhouse
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was found not guilty of two men last year. let's get more analysis from our bloomberg editor in washington. so, a lot of the critics who were not happy with this verdict point to the kind of institutional inequalities that appear to be pervasive in pockets of the u.s. tell us more about what their reactions mean. >> one of the people who took that tack was vice president kamala harris. joe biden was asked about the verdict a few hours afterwards. he said it left him angry and concerned, but that he accepted the verdict. it's the judicial system having reached this decision. and kamala harris said that -- she's a former prosecutor, said there is a lot more work to be done to make the justice system more equitable. so, there you already have
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nuances. in the democratic party of how this was staged. and then you have others on the republican side, including former president donald trump, who basically celebrated the ruling, saying it is a triumph for self-defense. kyle rittenhouse was a teenager, who is within his rights to do what he did, which resulted in charges including two counts of homicide and one of a homicide, which were dismissed, or which he was found not guilty of. shery: will this have lasting political implication given the huge divide we are seeing headed into the midterm elections? tony: it's certainly one further event that will play into these, the u.s. divisions, sometimes are called culture wars.
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this is really more about an issue that has already been out there for a long time, which has to do with gun control and the right to self-defense. and, of course, in this -- case, it handed a victory to the conservatives on that side of that argument. so, it could turn out to be a topic, along with many others we have seen. education. figured prominently in two state elections this month. and others that are touchstones of division among the american public. yvonne: our bloomberg editor in d.c. coming up next, we discussed the potential outcomes for -- as blackstone increases its bid. we will speak with steve
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johnson. this is bloomberg. ♪
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yvonne: taking a look at the day ahead for australia now. meridian is selling his business in the country to shell, with a deal to be complete in the first quarter of 2022. shell is taking ownership of meridians's -- in australia.
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icg is buying it's in the structure assets. seven group is going to offload is 15% interest in the lng project operated by shell, nwa. as a stallion borders reopen, bloomberg intelligence has the spending offshore to sap demand domestically. the markets are still awaiting results -- the embattled casino operator worth $6.2 billion. the private equity giant says it can rehabilitate a company that has left reeling from the series of scandals. steve johnson is the cio of forager funds. it is a tension lysing prospect for blackstone, the ability to see crown reinvented. and then you have these two monopolies across two major cities. how big is it there? steve: i think it is an opportunistic time.
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they have been working away at this for a number of years. crown has been going through its traumas. -- dramas. these assets are very resilient to those dramas. it is not like the customers are noticing a lot different. as you just touched on, they are pretty unique as far as assets in this industry go, being developed -- for markets monopoly in melbourne, napoli in -- a monopoly in perth and a du opoly in sydney where i am coming from that is the reason why plenty of other people interested in these assets. to be fair, i don't think the stock market has treated these assets or given them full value for some time. yvonne: disaffected dave packard has said he does not object to cutting down on the stake, does that make it more attractive in terms of ironing out more of the governance issues? >> i think it is more attractive
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for blackstone. i know they have got a shareholder there that is pretty keen to put the crown saga behind him and move on. he tried to sell his stake prior to this. it is not new from that. that shareholder there gives blackstone some confidence to get the deal done. i think for the rest of us shareholders, it is probably a negative. i think we can clear up some of the issues the regulator has here. i think selling that shareholding is going to make it easier for crown to get on with the government side of things but selling it for the wrong price is not going to help the rest of us because it does give blackstone a -- leg up in terms of getting a deal across the line. most of the other shareholders are towed to -- i talked to think that the asset is worth more than what was put on the table so far. shery: how much higher can this go? steve: i think there is a nice sweet spot.
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if you look at the assets they traded much higher multiples on the asx in australia and i think shareholders including us need to recognize they are worth more to private buyers than listed on the stock exchange. that is a simple function of a couple of things. one of them is that, the esg concerns in public markets. i think the shares trade at a discount for that reason. and the other and the more important one is it is really difficult to do the financial engineering that a private equity firm would do around this -- cost of assets in a public vehicle. i think it is the type of asset where that financial restructuring can at a huge amount of value. crown has been talking about splitting off its property assets from the casino operations for a number of years but nothing has happened. you can see a private equity firm doing something like that very quickly. shery: now that we have all of these of elements around the commission's report and so forth, how would you evaluate the risk in the broader -- in the gaming industry, and for
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that matter, what is your view of crown's largest competitor star entertaining? steve: i think it is one places in the world to own these assets. it is a consistent, predictable, regulatory regime. and the amount of competition that you have in australia is very limited. and i think you saw through the victorian investigation. as a shareholder, i want to see crown clean up its act. i think some of the actions that have happened over the past 10 years are not excepted both from a shareholder perspective. so, the regular and everyone involved in this business wants to clean up its act. but it was a fairly benign from a financial perspective outcome. i think you will see that through this inquiry, if crown and staff can prove they can get their act together, they are going to be allowed to keep their licenses, and they are going to be allowed to operate these casinos for a long time to come. and that is the outcome we will want to see.
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yvonne: what about competitors to blackstone? we spoke to matt -- back in august and he said, look, the proposition for a merger is still backs up for him. he was not primping anything. he did not say anything about the outcomes from the inquiry in the report. is that still a possibility? steve: it's got its own inquiry coming up. we own shares in both star and crown. from our perspective putting the two together would make some sense. i have a lingering concern it will not take away some of the issues around public market valuation of these assets. i think they are worth more, and i worry that share markets are never going to attribute the full value to that. if you're just talking to a crown shareholder, you say we will pay you lots of money but you end up owning shares in another casino that is listed on
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the stock exchange and probably also never trades full value. i think the certainty of cash here is probably going to win over that, all other things equal. but i also think at today's price, it is a lowball price for the quality of the assets. star can certainly do better than the $12.50 on the table at the moment. a private buyer will be able to pay more for these assets than a public one. yvonne: that brings me to a question about trade because it feels where it would -- was rewound a few months and now there is potentially a lot of options for crown on the table. steve: yeah, i think that is i think they need to be very careful about cutting any of those options off. when people ask me what we are going to do my answer is we're quite to sit here and wait and get more details and let this process unfold. and make it as competitive as you possibly can. i do n't think it is really a complicated set up for the crown board. they need to maximize the value
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of the business, and the best way to do that is to get as many parties interested as you possibly can. so, i think the more they are open about this, and the more they encourage potential competition, the better. i do think that blackstone best place at the moment. they have a lot of expense with the asset class overseas, but i am hoping that the board is fully cognizant of the fact that we own a very valuable asset. if there is a deal to be done it should be -- yvonne: what is your assessment of the broader macroenvironment for demands in terms of casino and entertainment in australia? because you have china essentially not going to be sending any tourists outside of their borders to hong kong but not to australia for quite some time. is the demand still there as we get out of covid? steve: yeah. i think the domestic aspects to the casinos here is very, very strong. with both of them, the high roller impact on the markets has
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been gone for a number of years now. so, i don't think anybody's looking at the numbers and say that will come back 100%. i think our domestic tourism markets here is set to recover very strongly. and with some of the, i've got a number of friends and family that were set to go back to europe for christmas and see their families for the first time in two years, and now austria is back down into lockdown and germany talking about the same thing and it is getting harder and harder to travel again in terms of the number of tests you have got to get. so i think the country is very well-placed for a resumption of the domestic tourism that we saw. i think what we saw australia relatively open as an economy, may april of 2021, these casinos were back operating pretty close to full capacity again. it's a very resilient sector and i expected to get better. gdp like growth pretty quickly and at the moment the consumers
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is in a good place in growth is very strong. shery: steve johnson, great to have your insight. forager funds cio joining us from sydney. time for morning calls ahead of the asian trading day. looking ahead to the rba and zed institutes, they said it is overwhelmingly in favor of titer monetary policy. -- tighter monetary policy. so called shadow wars which reflects labor shortages of the few was not unanimous with some members more cautious about further tightening, haidi. haidi: sticking with that decision, and take a look at the kiwi treasure seeing that new zealand's dollar is poised to recover from that sharp decline we saw earlier this month. the bak is forecasting for that -- the bank is or casting for declines giving the outlet for the rate hikes. there is a potential to tighten faster than inflation. hence, parts of the markets
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wondering if we get more than 25 bids this week. 2 million australians set to retire as living costs surge. why it's a tricky issue. this is bloomberg. ♪
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haidi: over 2 million australians are set to start drawing down on $220 billion of savings as every type your this comes as the same time as costs soar at the fastest pace in seven years. pension funds are under pressure. our managing editor ed johnson is can tell us more on the story. of course, we have one of the large largest retirement savings pension pool. the fourth-largest at $2.5 trillion. is that not enough to ensure them? >> good morning. that's right. it is indeed a huge pot, and that is helped by the fact that here in australia employs are forced to pay 10% of salaries into employees pensions. so, the so-called accumulation phase of a pension system works well but unlike systems in
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countries like the netherlands, like japan, most australian workers are not guaranteed a lifetime income when they exit the workforce. and the government wants the funds to design ways to ensure that retirees can sustain their lifestyle without outliving their savings. that's increasingly important. as you say, as cost of living rise. one estimate says that a retired couple needs to spend a little over 62 3000 australian dollars a year for a couple lifestyle. that is up 2.8% in the year to september, and that is -- it's surpassed its pace of increase since 2014. shery: it sounds like the market could be ripe for innovation. what are solutions that funds are coming up with? ed: fintech is devising new products for what we save. the drawdown phase of the de- accumulation phase of retirement. it is up to $25 billion managing this month, saying it will allow
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retirees to keep funds invested in its offerings with small portions allocated to cash accounts for a monthly income. that would reduce the risk of having to sell bigger stakes during market downturns. alliance retire plus, that is the venture -- and pimco, that lets retirees play in insurance premium for guaranteed income for seven to 10 years will keeping the bulk of their savings. allianz retirees and advanced talk with pension funds to help them develop their own products but of course a big part of this is re-educating people. to be prepared to spend their retirement savings, and that requires a big shift of attitude after people have been geared to saving, saving, over 40 years of working life. haidi: bloomberg news managing editor ed johnson there. and, of course, as we get into peek holiday travel season, a
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lot of folks in the u.s. will be traveling for thanksgiving. ns really there has been so much excitement of the limited reopening a places they can go -- in australia. we have seen 7 billion qantas frequent flyer points in a month. we had that upstate at the chart of the -- the start of the month. that really is not slowing down. it seems like after a long period of stockpiling -- because i have not been able to travel very much, we are now getting through there in record numbers. state border rules ending. flying resuming, and we have seen a dramatic shift in how members engage with the loyalty scheme according to qantas. shery: i'm not really surprised, because this was -- when i went to singapore and last night i was coming back through immigration and i have to say it felt almost like those pre-pandemic levels of travelers, especially trying to get out of the u.s. a week ago
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near the weekend. now they are saying that given the thanksgiving holidays, we could see this record number of travelers just after the pandemic hits. we're talking about roughly two million people a day projected to fly from november 19 through november 28th, according to the tsa. i'm really not looking forward to that. just this weekend i got in last night. it wasn't nice. [laughter] haidi: i got a say, having been through some u.s. airports at non-peek times, it is not, yeah, it is something you have to struggle through. it is not like china. we're so use of the efficiency of some of the best airports in the world and this part of the region. shery: singapore was a huge -- [laughter] haidi: it has challenges but also opportunities for some of these global airlines ahead of, in particular that loyalty segment being such a rare bright spot in this pandemic.
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still ahead on "daybreak: australia" we talk central-bank hawks and focus this week in this part of the world. rate decisions expected from the bank of korea. new moody's index will be weighing in. that is it for "daybreak: australia" daybreak asia is next. ♪
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>> good morning. i'm haidi stroud-watts in sydney. >> i'm shery ahn in new york. our top stories this hour. ages trading week set to begin in risk off mood. -- signs of beijing's discomfort with the rapid rise. speculation on currency trading.

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