US stocks slide again after a new Trump tariff threat. US inflation data was below forecasts. Migrant departures from New Zealand hit a record high, and Australian businesses didn’t get the same boost as consumers did from the RBA’s rate cut.
In our bonus deep dive interview, ANZ Economist Sophia Angala analyses the impact on Australia from the Trump Administration’s new metals tariffs.
5 things to know in 5 minutes:
US stocks and bond yields fell again after Donald Trump threatened 200% tariffs on European beverages. Markets brushed aside data showing lower than expected US PPI inflation. Investors are worried too that Trump officials are relaxed about markets falling, says ANZ Head of G3 Economics Brian Martin.
ANZ Group Chief Economist Richard Yetsenga believes the Trump administration might have to pivot away from policies causing uncertainty, but he says it’s tough to see what they could pivot to.
Annual departures of migrants from New Zealand hit a record of 122,800 in the year to January, up 18% from the previous year. ANZ Senior Economist Miles Workman says a key reason is the relative strength of Australia’s jobs market.
Meanwhile, the number of overseas travellers to New Zealand rose by 43,800 to 370,200 in January, but still haven’t caught up to their pre-COVID highs.
Australian business confidence data this week showed the Reserve Bank of Australia’s February rate cut didn’t feed through into confidence as it did for consumers, says ANZ Senior Economist Adelaide Timbrell.
Cheers,
Bernard
PS: Catch you next week with a look at what the Federal Open Markets Committee might decide for US interest rates. A quick note of celebration and thanks. This week #5in5withANZ passed the milestone of one million downloads since our launch in August 2023.
