Oil prices surged through US$80/barrel over the weekend after US and UK air strikes against Houthi facilities in Yemen raised fears a wider war in the Middle East could choke off shipping through the Red Sea and Persian Gulf.
In part one of our bonus deep-dive interview, ANZ Australia Senior Economist Adelaide Timbrell explains why demand for new offices is much stronger than expected, even with more people working from home.
5 things to know
Brent rose as much as 4% to US$80.84 after US and UK air strikes on Houthi facilities in Yemen. Container rates have surged too in recent days. ANZ’s Head of FX Research Mahjabeen Zaman is watching those inflation pressures.
Stronger-than-expected inflation data could upend a strong market view the Fed will cut in March. ANZ’s Head of G3 Economics Brian Martin sees US rate cuts more likely from Q3 because of solid US economic momentum.
Brian will be watching comments due on Tuesday night from Fed Governor and renowned hawk Christopher Waller for more direction on US rates.
Few listings and weak building consents are restraining growth in Australian bank lending, ANZ’s Adelaide Timbrell says.
Australian jobs figures and New Zealand business confidence data feature in the week ahead, says ANZ Group Chief Economist Richard Yetsenga.
Cheers
Bernard
PS: Look out tomorrow for part two of Adelaide Timbrell’s interview on office construction trends in Australia.
