Why 7-Eleven is betting on Australia, high wage growth, New Zealand holds rates

Get caught up

Read in browser

Good morning from Sydney, where we're looking at why 7-Eleven's Japanese parent is using Australia as the test case for global expansion — and stocking local shelves with fried chicken and onigiri rice balls. Elsewhere, there's a bit of economic news to digest: Australia's wage growth stayed stubbornly high last quarter and across the ditch, New Zealand's central bank kept rates unchanged. And finally, Rio Tinto increased its bets on the Canadian battery metals sector.- Sharon Klyne, private credit reporter. What's happening now The company behind 7-Eleven is betting Australia can be a proving ground for global growth, seeking to recreate the Japan-style convenience-store model that made the brand a powerhouse at home an open hundreds of new stores across the country by 2030. Bloomberg Australia's annual wage growth remained high last quarter, highlighting ongoing labor market tightness and reinforcing the inflation challenge facing the Reserve Bank. The data comes after the RBA because the first monetary authority in the world to lift rates this year. Across the Tasman, New Zealand's central bank held interest rates at the lowest level in 3-1/2 years and said it expects them to stay there while the economy regathers momentum, disappointing traders. Meanwhile, the central bank plans to up the number of monetary policy meetings to eight a year from 2027 to improve transparency and accountability. RBNZ Governor Anna Breman. Photographer: Mark Coote/Bloomberg Rio Tinto took majority control of Canadian lithium manufacturer as part of a push to invest more in Quebec projects in the battery metal sector. The announcement comes ahead of the mining giant's full-year results this afternoon. Dexus shares surged in Wednesday trading, as the company announced a buyback and CEO Ross Du Vernet doused concerns that artificial technology will hurt real estate demand. Elsewhere, outgoing Elders CEO Mark Allison expects another strong year for the beef industry, despite competition from Brazil and new China quotas. Bain Capital Credit and UBS are lending a combined A$540 million to an Australian health-equipment manufacturer Aidacare, Bloomberg News reported, in the latest example of private credit being used to help finance shareholder returns. What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… The dollar jumped after solid economic data sent Treasury yields higher and oil climbed on concern of continued US military build up even as talks with Iran continue. Stocks pared gains after minutes from the January Federal Reserve meeting showed "several" policymakers were open to the idea that rate increases may be necessary if inflation fails to abate. The kiwi fell the most after Wednesday's dovish RBNZ decision, dragging Aussie with it. Today, Australia has its jobs report for January to consider, while New Zealand has bonds to sell. ASX futures point to another firm start for local equities. Philippine Vice President Sara Duterte announced her bid for president in the next election in 2028, amid a deepening feud with the incumbent leader and fresh impeachment attempts against her. Sara Duterte, Philippines' vice president. Photographer: Lisa Marie David/Bloomberg Alphabet Inc is planning new ways to boost its India expansion, including fiber-optic routes between that country and the US, as well as other locations in the Southern Hemisphere. US President Donald Trump and Japan Prime Minister Sanae Takaichi are fossil fuel buddies, writes David Fickling for Bloomberg Opinion, as the countries each fight "a rearguard action against the energy transition to protect the status of incumbent businesses." What to watch • Australia jobs data at 11.30am Sydney One more thing... Fancy yourself a detective? More people are dialing M for murder-mystery weekends and signing up for getaways built around suspense, sleuthing and interactive play. Emma Campbell performing at the Hudson Valley's Six Bells Inn Photographer: Gabriela Herman for Bloomberg Businessweek Enjoying Australia Briefing? You might also like: Markets Daily for what's moving in stocks, bonds, FX and commodities Next China for dispatches from within the world's second-largest economy on where China stands now — and where it's going next Markets Daily India for key news and movers in this fast-growing market before the trading day starts Get weekly updates on these industries with our new Retail Monitor, Auto Monitor, Defense Monitor, Real Estate Monitor, Banking Monitor newsletters Explore all Bloomberg newsletters at Bloomberg.com. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Australia Briefing newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |