Crypto News: Inflation nation

Good morning, it's Amy in Melbourne with the Friday edition of our Bloomberg Newsletter.

Today's must-reads:
• IFM Investors chief economist on interest rates
• How bonds are powering a stock surge
• New Zealand to explore joining Aukus

The Reserve Bank of Australia will only begin cutting interest rates in late-2024 as prices are likely to remain sticky for some time yet. That's according to IFM Investors Chief Economist Alex Joiner, who spoke with Bloomberg a day after softer-than expected inflation bolstered bets on policy easing. Overseas, Bloomberg Opinion's John Authers writes a Fed cut in March is unlikely.

Meanwhile, Australian bonds appear to be powering the recent surge in domestic stocks, with the two assets moving more in tandem on optimism the Reserve Bank will cut interest rates. The country's bonds have rallied alongside global peers since the start of November.

New Zealand has agreed to officially explore the potential benefits of joining the Aukus pact, the latest sign that Wellington will contribute to the security agreement mainly aimed at countering China. Australia will send a team of officials to New Zealand for talks. The foreign affairs and defense ministers of both countries met in Melbourne yesterday.

US President Joe Biden and Anthony Albanese discussed the Aukus agreement during Albanese's visit to Washington last October. Photographer: Yuri Gripas/Abaca

Lenders including Bain Capital and Sona Asset Management have agreed to take over a distressed Australian wine producer as part of a debt restructuring. The funds will get the keys to Accolade Wines from previous sponsor The Carlyle Group, by swapping their debt for shares in the company, according to people familiar with the matter.

In markets news, the rally in big tech extended into late hours after bullish numbers from two of the megacaps. Meta Platforms gave a forecast for revenue growth that beat estimates while announcing it will pay its first-ever quarterly dividend of 50 cents a share and authorize an additional $50 billion in buybacks. Amazon reported strong profit. Apple shares fell in postmarket trading after first-quarter revenue from the greater China region missed estimates.

Japan's Aozora Bank became the second lender in a span of hours to surprise investors with losses tied to US commercial property. The US commercial real estate market has been in turmoil since the onset of the Covid-19 pandemic.

More than 60 US citizens and their family members who were killed, injured or taken hostage in the Hamas attack on Israel sued Iran, demanding upwards of $1 billion from the Islamic Republic for aiding the terrorist organization.

If you're travelling to Singapore, you're on trend. Singapore's international visitor arrivals doubled in 2023 from a year ago to reach 13.6 million, led by travelers from Indonesia, China and Malaysia.

Photographer: Roslan Rahman/AFP

All times Sydney
• 11:30 am: Australia Dec. house loan data
• 11:30 am: Australia 4Q PPI

Car buffs and royal aficionados look no further: The Loire Blue Range Rover that was used by the royal household and the late Queen Elizabeth is up for sale. The price to own the Range Rover used by the Queen is £224,850 ($285,000), and it's being sold by Bramley Motor Cars in Surrey, England. A new model starts at just under £100,000.
Have a great weekend.