# Stocks Pare Gain, Oil Climbs as US Strikes Iran Targets

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 26 May 2026, 22 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/bd2a7985-c023-4820-9134-b45600278ae4/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Stocks trimmed gains and crude oil climbed after US strikes on sites in Iran curbed optimism over a potential deal with Tehran. US equity-index futures rose 0.6%, though gains were more subdued than Monday's holiday-thinned advance, when markets in the US were closed. Asian shares edged up 0.3%, off session highs, as American forces hit missile launch sites in Iran and boats trying to place mines, US Central Command said. The authorities described the attacks as defensive in nature. For more on the markets, we spoke to Lianting Tu, Bloomberg's Managing Editor for Asia Equities. Plus - In a recent poll, Australians broadly expected the Labor government's annual budget would leave them worse off. Bloomberg's Haidi Stroud-Watts and Shery Ahn spoke to Amy Auster, CEO of the Policy Institute of Australia. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
[0:11] Speaker 2: Welcome to the Daybreak Asia podcast. I'm Derek Prisner. The
[0:14] Speaker 2: oil markets are being buffeted today by news that the
[0:17] Speaker 2: US military carried out self defense strikes in southern Iran.
[0:21] Speaker 2: Targets included missile launch sites along with boats laying mines.
[0:26] Speaker 2: Here's Bloomberg's Michael Heath.
[0:28] Speaker 3: Basically, Iran was looking to lay minds in the Strait
[0:33] Speaker 3: of Horn Wars, which the US is always and most
[0:36] Speaker 3: nations have been very, very worried about just because of
[0:39] Speaker 3: the risks that they posed to commercial shipping. So the
[0:42] Speaker 3: aim was to sort of prevent that. There's been these
[0:44] Speaker 3: spot fliers going on NonStop. I mean over on the
[0:48] Speaker 3: border with Israel Lebanon. There's quite a lot of fighting
[0:50] Speaker 3: going on at the moment as well. So whether this
[0:54] Speaker 3: is enough to sort of derail where talks are or not,
[0:57] Speaker 3: it's hard to know. It seems unlikely. There does seem
[0:59] Speaker 3: to be a lot of moments to going on.
[1:01] Speaker 2: That is Bloomberg's Michael Heath. Now, it was earlier in
[1:03] Speaker 2: the day that President Trump said talks with Iran we're
[1:06] Speaker 2: proceeding nicely, and from the Iranian side that Foreign Ministry
[1:10] Speaker 2: said a consensus was reached on many topics discussed, but
[1:13] Speaker 2: he went on to say no one can claim the
[1:15] Speaker 2: signing of an agreement is imminit And at the same time,
[1:18] Speaker 2: the Wall Street Journal cited mediators saying the talks are
[1:21] Speaker 2: being bogged down over Iran's nuclear program and financial relief
[1:26] Speaker 2: for Tehran. WTI crude oil was last quoted down nearly
[1:30] Speaker 2: five percent in the Asian session. For a closer look
[1:33] Speaker 2: now at market action, I'm joined by Bloomberg's Leonting IWO.
[1:36] Speaker 2: Leonting is Managing editor for Asia Equities, and she joins
[1:41] Speaker 2: from our studios in Singapore. Nice of you to be here.
[1:44] Speaker 2: This is a highly unstable system and it's one of
[1:47] Speaker 2: the things I think that's contributing to a lot of
[1:50] Speaker 2: volatility in the equity market. It seems as though it's
[1:53] Speaker 2: going to be with us for some time until there's
[1:56] Speaker 2: a resolution. Wouldn't you say yeah?
[1:58] Speaker 4: I would say overall traders are really looking at a
[2:02] Speaker 4: future where this wall has ended and there's a resolution
[2:07] Speaker 4: to reopening the strait of hormones. I think a lot
[2:10] Speaker 4: of people believe that the kind of back and forth
[2:13] Speaker 4: in terms of negotiation and it will happen, will it
[2:16] Speaker 4: will last for a few weeks, maybe months. But the
[2:19] Speaker 4: most exciting thing right now is the very much, very
[2:22] Speaker 4: much about the AI trade for traders. And I think
[2:27] Speaker 4: the latest obsession for traders is to look beyond those
[2:33] Speaker 4: largest AI hardware names, including TSMC and Samson and looking
[2:38] Speaker 4: at those granular, most smaller but niche names because they
[2:43] Speaker 4: are looking at the next bottleneck for AI supply chain
[2:47] Speaker 4: and betting that shortage in those bottlenecks would have to
[2:52] Speaker 4: drive up prices. So people are looking at semiconductor materials,
[2:57] Speaker 4: analog chips, and server names right now.
[3:00] Speaker 5: Yeah.
[3:00] Speaker 2: I was struck by this story on Bloomberg that Huawei
[3:03] Speaker 2: Technologies has developed a new pathway to shorten its gap
[3:07] Speaker 2: with TSMC in making advanced semiconductors. A lot of that
[3:12] Speaker 2: obviously would be applied for AI. What do we know
[3:15] Speaker 2: about this story? Is Huawei really being able to create
[3:19] Speaker 2: a new technology that may kind of not be as
[3:22] Speaker 2: reliant on the extreme ultraviolet lithography machines that ASML makes.
[3:29] Speaker 4: Yeah, I think at least for market participants, they're taking
[3:33] Speaker 4: the news very seriously. If you look at the market
[3:35] Speaker 4: reaction Mainland China chip names were up twenty percent yesterday
[3:40] Speaker 4: and today Hong Kong reopened. We're see similar follow through
[3:44] Speaker 4: and that means people really expect some kind of breakthrough
[3:48] Speaker 4: for China's AI self reliance ambitions. And what really matters
[3:53] Speaker 4: here is the global chip industry has assumed that as
[4:00] Speaker 4: ASML's EUV machines are quite essential to making any advanced chips,
[4:06] Speaker 4: and China doesn't have access to such tools because of
[4:10] Speaker 4: the export controls from the US. So if Huawei genuinely
[4:14] Speaker 4: could narrow the technological gap without using the EUV tools,
[4:19] Speaker 4: that really challenges the underpinning assumption for the chip industry
[4:24] Speaker 4: and that is what got investors really excited. But what
[4:28] Speaker 4: we should be cautious about is Huawei's roadmap for the
[4:32] Speaker 4: rollout of the technology is talking about, you know, next decade,
[4:35] Speaker 4: twenty thirty one. That's a long lead time and it
[4:40] Speaker 4: still will be behind TSMC's technology. And again, manufacturing these
[4:45] Speaker 4: advanced chips in mass scale is extremely difficult, so some
[4:48] Speaker 4: questions should be warranted.
[4:50] Speaker 2: The South Korean market has been a big beneficiary of
[4:52] Speaker 2: this AI trade. We had a holiday on Monday and
[4:56] Speaker 2: Seoul so we come back online and the costp rallies
[4:59] Speaker 2: by nearly three percent. Is this primarily a story on
[5:02] Speaker 2: Samsung in sk Heinex today, Yeah, very much so.
[5:06] Speaker 4: But as I mentioned, there are we're seeing some broadening
[5:10] Speaker 4: out right, So the chip sort of material and small
[5:14] Speaker 4: components of the chip, that kind of manufacturers are actually
[5:17] Speaker 4: leading the games. We're seeing twenty percent also jumps in
[5:20] Speaker 4: a sort of companies in a cohort that is much
[5:23] Speaker 4: smaller in scale versus some sound and sk HANNIS. And
[5:27] Speaker 4: what's interesting for the career market is that they are
[5:30] Speaker 4: going to launch single stock leveraged ETFs for the first
[5:35] Speaker 4: time in history. I mean, Korea is already the world's
[5:38] Speaker 4: most volatile market, so launching that kind of tool to
[5:42] Speaker 4: allow retail investors to amplify the returns as well as
[5:46] Speaker 4: losses is probably not going to vote very well in
[5:50] Speaker 4: the long term.
[5:51] Speaker 2: We were talking about TSMC a moment ago, obviously the
[5:55] Speaker 2: dominant player in Taiwan's equity market, and I was reading
[5:58] Speaker 2: a story and you and I were talking before we
[6:01] Speaker 2: began to record that Taiwan's now market capitalization for the
[6:05] Speaker 2: overall equity market is just under five trillion dollars, and
[6:09] Speaker 2: this kind of goes beyond what the market cap for
[6:13] Speaker 2: the Indian equity market is, right.
[6:15] Speaker 4: Yes, it is today. That takeover did.
[6:18] Speaker 6: Happen this morning.
[6:19] Speaker 4: It's such an exciting milestone for Taiwan. Right if you
[6:23] Speaker 4: look at the economy, Taiwan's GDP is about one trillion
[6:26] Speaker 4: and Indie India's GDP is about four times larger, but
[6:30] Speaker 4: Taiwan's market cap is now pretty much the same as India's.
[6:34] Speaker 4: It shows a diversion fortunes for markets where you know,
[6:37] Speaker 4: for markets like Taiwan, for example, it has full of
[6:40] Speaker 4: cutting edge technologies and it's a big AI exporter. But
[6:44] Speaker 4: for India, it does not have any advanced technology related
[6:48] Speaker 4: to AI and it's heavily reliant on oil, so it
[6:51] Speaker 4: is hurt by the Iran War. It is heard by
[6:54] Speaker 4: the lack of AI investors now treating India as a
[6:58] Speaker 4: funding market, which means they're said Indian equities to pile
[7:01] Speaker 4: into the likes of Taiwan and Korean equities.
[7:04] Speaker 2: You were talking a moment ago about how the South
[7:07] Speaker 2: Korean equity market is broadening out beyond the names Samsung
[7:11] Speaker 2: and sk Heinex, and I'm wondering is the same true
[7:14] Speaker 2: in Taiwan, where it's beginning to broaden beyond TSMC.
[7:18] Speaker 4: Yes, definitely, that is a trend we're seeing actually not
[7:21] Speaker 4: just in Korea, not just in Taiwan, but globally in
[7:23] Speaker 4: the US as well. The idea is that in the
[7:26] Speaker 4: AI training stage, which is what we were focused on
[7:31] Speaker 4: a few years. For the last few years, there is
[7:33] Speaker 4: a lot of demand for top end GPUs, which means
[7:37] Speaker 4: you know, it's N video chips and it's TSMC making
[7:41] Speaker 4: the N video chips. Those are the biggest beneficiaries. But
[7:44] Speaker 4: now we're in the inference stage, which means people are
[7:49] Speaker 4: using AI tools in everyday lives, in consumer lives and
[7:54] Speaker 4: also business lives. So that also means the supply chain
[7:58] Speaker 4: for the inference would have to be much bigger. So
[8:02] Speaker 4: there is a lot of demand for CPUs for example,
[8:06] Speaker 4: and the likes of Intel could make CPUs right. And
[8:09] Speaker 4: so you're seeing the underperformance for the likes of TSMC,
[8:13] Speaker 4: which is a campaign for the AI trade. This year
[8:16] Speaker 4: to date, the smaller arrival of media tech in Taiwan
[8:19] Speaker 4: is way out performing TSMC. I think media tech was
[8:23] Speaker 4: up more than one hundred and fifty percent last time.
[8:25] Speaker 2: I checked Leonteing. I have to ask you about this
[8:28] Speaker 2: crackdown that was launched recently by Beijing on illicit cross
[8:32] Speaker 2: borders stock trading. I'm imagining it's a way to prevent
[8:37] Speaker 2: more in the way of capital outflow. Is there something
[8:40] Speaker 2: else going on with this story that you can help
[8:42] Speaker 2: kind of illuminate for me?
[8:44] Speaker 6: Yeah.
[8:44] Speaker 4: I would say people are still guessing what really triggered
[8:48] Speaker 4: such aggressive regulatory reaction or crackdown on this industry. I
[8:55] Speaker 4: would say a reasonable guess would be yes, it's to
[8:58] Speaker 4: prevent the hot money outflows that we are seeing in
[9:02] Speaker 4: the last year or so. According to Bloomberg Intelligence estimates, see,
[9:08] Speaker 4: we saw one trillion dollars of so called hot money
[9:11] Speaker 4: getting out of China in the year of twenty twenty five,
[9:15] Speaker 4: and that is the biggest outflow since two thousand and six.
[9:20] Speaker 4: So that's one reason. The other reason is the tax
[9:23] Speaker 4: collection incentives. I think the Chinese government has been stepping
[9:26] Speaker 4: up in collecting overseas the citizens overseas income that would
[9:31] Speaker 4: include stock trading, right the gains from stock trading, and
[9:35] Speaker 4: some folks have already been contacted by authorities to collect
[9:39] Speaker 4: such tax. So I think both combined would lead to
[9:44] Speaker 4: today's regulatory crackdown. But in terms of the market reaction,
[9:49] Speaker 4: I think today if you see in Hong Kong, which
[9:51] Speaker 4: you know is re reacting to that news for the
[9:53] Speaker 4: first time, it's actually quite muted. I think people after
[9:57] Speaker 4: a few days of you know, analysis, realized that the
[10:01] Speaker 4: two year timeframe that the regulator offers for maintaned traders
[10:05] Speaker 4: to close their account or liquidate their shues is actually
[10:08] Speaker 4: quite long. And also it doesn't mean the money is vanishing,
[10:12] Speaker 4: because some investors are actually looking to migrate to other
[10:16] Speaker 4: trading platforms such as you know Bank of China, Hong
[10:18] Speaker 4: Kong branch or HSBC where crossborder trading is still allowed,
[10:23] Speaker 4: and some others are migrating into more sort of safer
[10:26] Speaker 4: official channels like QDII Funds and Stock Connect. So overall,
[10:31] Speaker 4: you know, people are realizing there's no reason to panic at.
[10:34] Speaker 2: The stage, Leon ting, we covered a lot of topics today.
[10:37] Speaker 2: Thank you so very much, Bloomberg's Leon Tink two, Managing
[10:41] Speaker 2: editor for Asia Equities, joining from Singapore here on the
[10:44] Speaker 2: Daybreak Asia podcast. Welcome back to the Daybreak Asia Podcast.
[10:55] Speaker 2: I'm Derek Krisner. We go to Australia next, where in
[10:58] Speaker 2: a recent polls Australians broadly expected the Labor Government's annual
[11:03] Speaker 2: budget would leave them worse off. That's where we begin
[11:06] Speaker 2: our conversation with Amy Auster. Amy is the CEO of
[11:09] Speaker 2: the Policy Institute of Australia. She spoke with Bloomberg TV
[11:13] Speaker 2: host Cherry On and Heidi Stroud Watts.
[11:15] Speaker 1: We were talking about this a little bit earlier when
[11:17] Speaker 1: it comes to addressing the affordability crisis when it comes
[11:20] Speaker 1: to the property sector in particular, these policies are intended
[11:25] Speaker 1: to create a redistribution when.
[11:27] Speaker 6: It comes to the housing market.
[11:29] Speaker 1: Do you think that is a needle that is possible
[11:33] Speaker 1: to be threaded or do you think what we're going
[11:36] Speaker 1: to end up with is going to be that uneven
[11:38] Speaker 1: slow down in the property market and perhaps not as
[11:41] Speaker 1: much in terms of addressing affordability and accessibility.
[11:45] Speaker 6: Yes, oh, those are great questions.
[11:48] Speaker 7: Good morning, great questions and a complex series of questions.
[11:53] Speaker 7: So I think in this budget, the changes that we've
[11:56] Speaker 7: seen to tax have been oriented toward improving the equity
[12:03] Speaker 7: and ensuring the progressivity of Australia's income tax regime. And
[12:08] Speaker 7: that's really where the conversation started. In terms of the
[12:12] Speaker 7: tax changes themselves, I think the application of a change
[12:17] Speaker 7: to the CGT discount as it comes to property really
[12:21] Speaker 7: wasn't a surprise. That's something that the government's been telegraphing
[12:25] Speaker 7: for a while and has done some work on, including
[12:27] Speaker 7: through a special Senate committee that was convened to look
[12:30] Speaker 7: at this tax. What did surprise people was its broader
[12:34] Speaker 7: application across kind of any capital gain, which affects small business,
[12:40] Speaker 7: medium businesses. It affects the startup and mentor capital sector
[12:44] Speaker 7: quite dramatically, and that's where I feel like there's now
[12:48] Speaker 7: a lot of work being done to figure out how
[12:51] Speaker 7: to take that one forward, and I think we'll see
[12:55] Speaker 7: further discussion as the legislation gets released this week. In
[12:59] Speaker 7: terms of the impact on the property market, there's been
[13:02] Speaker 7: some modeling done. A few caveats, I would say one
[13:07] Speaker 7: is there's a lot of things happening in the property
[13:09] Speaker 7: market right now, including we're still in a rate rise cycle.
[13:13] Speaker 7: The RBA's just raised interest rates again probably on hold
[13:16] Speaker 7: for now, but with the economy slowing in a higher
[13:19] Speaker 7: rate environment, that's going to have an impact regardless, and
[13:23] Speaker 7: the changes in the tax our grandfathers, so any existing
[13:27] Speaker 7: property is going to be managed under the old arrangement.
[13:30] Speaker 7: So in terms of practical impact, it's more about expectations
[13:35] Speaker 7: going forward than if you like immediate impact. Now that
[13:39] Speaker 7: being said, the models indicate not a huge impact in
[13:43] Speaker 7: terms of either the turnover of property or on prices
[13:48] Speaker 7: of property. It's more the mix of investor properties versus
[13:53] Speaker 7: owner occupied properties. For me, I think, as I said,
[13:58] Speaker 7: the impact is probably relatively muted, and for US policy
[14:02] Speaker 7: insitute Australia, what we wanted to see in this budget
[14:05] Speaker 7: was more effort on the supply side to create more
[14:08] Speaker 7: housing supply, because at the end of the day, that's
[14:11] Speaker 7: really what's going to balance the scales in terms of
[14:14] Speaker 7: people having access to the homes that they want to purchase.
[14:19] Speaker 1: Do you worry about the sentiment impact, because, as I
[14:22] Speaker 1: think you alluded to, this sentiment shift in property started
[14:26] Speaker 1: before obviously the global developments of this year right and
[14:30] Speaker 1: certainly before the budget with the tightening cycle of the RBA.
[14:34] Speaker 1: Do you think now that, given we still have potential
[14:37] Speaker 1: global shocks on the horizon as well, that it has
[14:41] Speaker 1: become a bit more risky in terms of that erosion
[14:43] Speaker 1: of accumulated wealth in this country that is tied to
[14:47] Speaker 1: the property market.
[14:54] Speaker 7: Hesitate to bet against the property market in Australia because
[14:58] Speaker 7: it's been so success us full for so long. There
[15:01] Speaker 7: is we say the property market. There's actually a lot
[15:04] Speaker 7: of nuance in the property market. Detached dwellings tend to
[15:08] Speaker 7: perform better over time than units, for example. There's some
[15:12] Speaker 7: great variation in price performance there. And we've been through
[15:16] Speaker 7: periods before, through either rate tightening cycles or when APRA
[15:23] Speaker 7: has tightened up credit metrics, which kind of has the
[15:25] Speaker 7: same effect where we've seen prices tracks sideways for a
[15:30] Speaker 7: while and then situation improves and prices start to rise again.
[15:35] Speaker 7: We very rarely see prices decline. What we do see
[15:39] Speaker 7: is when conditions are not good or when sentiment is weak.
[15:44] Speaker 6: What we see as volumes.
[15:45] Speaker 7: Drop because owners don't want to sell at a discount.
[15:49] Speaker 7: So what we tend to see when sentiment is weak
[15:53] Speaker 7: is that prices track sideways and volume drops. And I
[15:57] Speaker 7: think that's what we might see in the current environment.
[16:01] Speaker 5: I mean, when it comes to international investors watching this budget.
[16:07] Speaker 6: Is the budget?
[16:08] Speaker 5: Does this signal a more open Australian government to foreign
[16:12] Speaker 5: investments or could they be more disruptive?
[16:17] Speaker 7: Well, in fact, there was some really good news for
[16:19] Speaker 7: business in this budget. The debate domestically has certainly been
[16:26] Speaker 7: very focused on the tax changes, but there's been other
[16:30] Speaker 7: things going on that are quite positive for foreign investors.
[16:33] Speaker 6: In particular. I would call out there's a bit of.
[16:36] Speaker 7: Investment going into Treasury to look again at how they
[16:40] Speaker 7: are approving applications that go through the Foreign Investment Review Board.
[16:46] Speaker 7: Now that's the FERB has been reformed to take a
[16:50] Speaker 7: greater look in scrutiny some years ago at foreign foreign
[16:54] Speaker 7: applications for investment that we're coming through. A lot of
[16:57] Speaker 7: those have to do with commercial property. The process now
[17:02] Speaker 7: or the reform is to speed those up with a
[17:04] Speaker 7: commitment to a maximum thirty day turnaround time and to
[17:07] Speaker 7: streamline approvals, which really should be beneficial for foreign investors
[17:11] Speaker 7: in particular.
[17:12] Speaker 6: There were also a number of other.
[17:14] Speaker 7: Measures that we've been advocating for to basically improve regulatory practice, deregulate,
[17:21] Speaker 7: streamline approval, streamline tax compliance, including with the ATO. So
[17:26] Speaker 7: those are all really positive for investment, and that continues
[17:30] Speaker 7: on work that the government was doing in the first
[17:32] Speaker 7: term to lift productivity through improving competition. That's something that
[17:36] Speaker 7: we've really advocated for. So there is quite a bit
[17:38] Speaker 7: for business to like in this budget while we are
[17:41] Speaker 7: also grappling with these CGT changes.
[17:44] Speaker 5: Tell us a little bit about the productivity reform for example,
[17:48] Speaker 5: because of course we have been looking at this budget
[17:50] Speaker 5: from the tax lens and it's a huge change. But
[17:53] Speaker 5: at the same time, how much did it do in
[17:56] Speaker 5: order to really address those structural issues in the austreaming Call.
[18:00] Speaker 7: Me, well, this is one of the things that there's
[18:04] Speaker 7: a couple of you take a step back. There's a
[18:06] Speaker 7: couple of things that I think are really commendable in
[18:09] Speaker 7: this budget, and this is really important. One is that
[18:14] Speaker 7: it is stabilized the deficit. It is stabilized as size
[18:17] Speaker 7: of government as a share of GDP, is a much
[18:20] Speaker 7: more expenditure restrained budget than what we've seen from this
[18:24] Speaker 7: government in the past, including taking the cost of the NDIS.
[18:28] Speaker 7: So those are really good signs for if you like
[18:31] Speaker 7: overall budget and fiscal management.
[18:33] Speaker 6: So I put that I give that a tick.
[18:35] Speaker 7: The second is that if you read the budget papers,
[18:38] Speaker 7: there was as much space given to productivity reform or
[18:43] Speaker 7: reforms oriented toward lifting productivity.
[18:47] Speaker 6: As anything else. That's not something that.
[18:49] Speaker 7: We've seen in budgets for a long long time and
[18:51] Speaker 7: that is really positive. So there were things around occupational
[18:56] Speaker 7: licensing and faster and better use of the skilled migrant visa.
[19:02] Speaker 6: So we have a lot of skill.
[19:04] Speaker 7: Migration into this country, but because of the points system
[19:07] Speaker 7: that's very complicated, people often end up working in jobs
[19:10] Speaker 7: that are not where their skills sit, and so reforming
[19:14] Speaker 7: that and making it easier for people to get those
[19:16] Speaker 7: high value jobs and migrants who are coming to Australia
[19:18] Speaker 7: very positive. They're making standards free. Through Standards Australia sounds
[19:23] Speaker 7: like a small thing, but when you're an electrician and
[19:25] Speaker 7: you have to pay sixteen hundred bucks just to figure
[19:27] Speaker 7: out how to comply with the code every year, that's
[19:31] Speaker 7: productivity enhance saying reform, there's a lot of these things
[19:35] Speaker 7: that are kind of they sound micro, but you add
[19:38] Speaker 7: them up and they do lead to an improvement in
[19:43] Speaker 7: productivity by just making it easier to do business in Australia.
[19:47] Speaker 6: So there's stuff that was done.
[19:49] Speaker 7: We have a wish list of more things that we
[19:51] Speaker 7: would like to be done, especially housing planning, land release planning,
[19:55] Speaker 7: zoning approvals. That's something that could really boost housing supply
[20:00] Speaker 7: and efforts to improve productivity in our construction sector really
[20:03] Speaker 7: important for housing, but there was some really good progress made.
[20:08] Speaker 5: Given the public's response, does a government need to do
[20:11] Speaker 5: more in order to sell this budget then? Will it
[20:13] Speaker 5: make a difference when it comes to implementation.
[20:19] Speaker 7: It's a great question, and you know, I'm not a
[20:21] Speaker 7: politician and it's not up to me. I think there's
[20:24] Speaker 7: going to be a lot of education that's going to
[20:27] Speaker 7: be needed. The legislation on CGT is coming in this week.
[20:30] Speaker 7: We'll see how that gets debated through parliament trusts, which
[20:35] Speaker 7: is also really important for business. That's not coming to
[20:39] Speaker 7: legislation until later this year. So there's quite a long
[20:42] Speaker 7: way to go and conversation for people to understand what
[20:45] Speaker 7: the change, what the changes are, and what it means
[20:48] Speaker 7: for them. So I think this will this will take
[20:51] Speaker 7: some time. What's hanging out in future, of course, is
[20:55] Speaker 7: that the measures as they're being contemplated right now are
[20:59] Speaker 7: revenue raising. The government has introduced the working tax offset,
[21:03] Speaker 7: the WAITOU two hundred and fifty bos reduced for anyone
[21:08] Speaker 7: who's paying income tax based on a wage. Going into
[21:12] Speaker 7: the next election, there would certainly be room to expand
[21:15] Speaker 7: that and so people may find that there is a
[21:18] Speaker 7: good deal for them in the end in these tax changes,
[21:21] Speaker 7: but we just have to see how it unfolds.
[21:25] Speaker 2: That was Amy Auster, CEO of the Policy Institute of Australia,
[21:29] Speaker 2: speaking with Bloomberg TV host Cherry On and Heidi Stroud Watts,
[21:33] Speaker 2: bringing you their conversation here on the Daybreak Asia Podcast.
[21:39] Speaker 2: Thanks for listening to today's episode of the Bloomberg Daybreak
[21:42] Speaker 2: Asia Edition podcast. Each weekday, we look at the story
[21:46] Speaker 2: shaping markets, finance, and geopolitics in the Asia Pacific. You
[21:50] Speaker 2: can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
[21:55] Speaker 2: or anywhere else you listen. Join us again tomorrow for
[21:58] Speaker 2: insight on the market moves from Hong Kong to Singapore
[22:02] Speaker 2: and Australia. I'm Doug Prisoner and this is Bloomberg

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