Global stocks and riskier currencies are falling this morning after Donald Trump sent letters to Japan and South Korea setting tariffs of 25% from August 1, and the Reserve Bank of Australia (RBA) is expected to cut rates later today.
In our deep dive interview, ANZ Chief Economist for Greater China, Raymond Yeung, has taken a closer look at the idea of stablecoins issued in Hong Kong as a way for China to de-dollarise. He’s sceptical.
5 things to know in 5 minutes:
US stocks and more risk-sensitive Aussie and Kiwi dollars are down as much as 1% this morning after Donald Trump set 25% tariffs on exports from South Korea and Japan from August 1. He also threatened an extra 10% tariff on exports from the BRICS countries, which is unsettling markets again, says ANZ Economist Bansi Madhavani.
The RBA is expected to cut its cash rate by 25 basis points to 3.6%, says ANZ’s Head of Australian Economics Adam Boyton.
Adam then sees another cut by the RBA in August, before a pause.
ANZ Economist Aaron Luk reports the ANZ Indeed Job ads series rebounded 1.8% in June to a 12-month high after two months of falls.
OPEC+ has accelerated its unwinding of production cuts made during Covid, says ANZ Senior Commodities Strategist Daniel Hynes.
Cheers,
Bernard.
PS: Catch you tomorrow with the detail and reaction to the RBA’s decision at 2.30pm Sydney/Melbourne time today.
