Good morning,

Australia is experiencing a "cost-of-manufacturing crisis" that is equally as painful and dangerous to the economy as the cost-of-living crisis, the local boss of Cadbury owner Mondelez, one of the world’s largest supermarket suppliers, says. 

BHP either must walk away from its $64bn tilt at Anglo American or bump up its offer in a blind bid which could lead to disaster and permanently tarnish CEO Mike Henry’s record, writes Nick Evans.

Santos has laid off 200 employees and contractors, mostly in WA, as it struggles with delays in securing approvals for new growth projects.

Five things to know this morning

1. ASX to rise after easing US inflation steered Wall Street indexes towards record highs. Jobless numbers for April, RBA assistant governor Sarah Hunter's speech in focus.
2. Star Entertainment says the hostility of former CEO Robbie Cooke and chairman David Foster towards the casino regulator were ‘deplorable’ and likened their removal to warriors being carried off the battlefield in an Icelandic saga.
3. The critical minerals sector has welcomed budget initiatives but says before companies commit to production facilities in Australia they will need to know the regulations they are facing, have offtake agreements in place as well as viable cost structures.
4. The federal government’s $300 energy bill handout to every household won’t go anywhere near covering the electricity savings promised by Prime Minister Anthony Albanese before the last election.
5. Food and grocery suppliers are increasingly pessimistic about their ability to recover rising input costs from supermarkets through higher prices, as pressure from politicians, public inquiries and deflation sees a fall in shelf prices, new research shows.