Tuesday, February 25, 2025

Chalmers tests steely resolve on US tariffs

Good morning, it's Harry here in Sydney with your midweek must-knows to start your day.Today's must-reads:• US tariffs discussed in Washingt
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Good morning, it's Harry here in Sydney with your midweek must-knows to start your day.

Today's must-reads:
• US tariffs discussed in Washington
• Corporate watchdog worried on private markets
• Jet pilot the first to report Chinese live-fire drills 

What's happening now

Treasurer Jim Chalmers said he had "very constructive" talks with his US counterpart Scott Bessent in Washington. Discussions about avoiding tariffs on steel and aluminum were a key part of Chalmer's agenda, which also included broader Australia-US economic ties.

The country's corporate watchdog is reviewing regulatory oversight of private markets as the country's A$4.1 trillion ($2.6 trillion) pensions sector fuels an explosion of activity in the space, while public listings have plunged. 

Australia was unaware Chinese warships were set to conduct live-fire exercises off its east coast until its security authorities were alerted via a Virgin Australia pilot. Rob Sharp, chief executive officer of Airservices Australia, told a Senate hearing late Monday that his organization only became aware of the drills shortly before they began. 

As Prime Minister Anthony Albanese says President Donald Trump has agreed to consider an exemption for Australia from US tariffs on steel and aluminum, Australian Chamber of Commerce and Industry CEO Andrew McKellar joins Bloomberg's Australia Ahead program to discuss the impact of Trump's trade war on businesses, and what policies firms are seeking from Canberra ahead of a national election due in the next few months.

China is emerging as a clear winner in the new energy race due to its dominance in solar panel production, with the country's technological expertise positioning it to build stronger relations with emerging powers as countries like Brazil, Pakistan, and Saudi Arabia importing large quantities of solar panels, writes Bloomberg Opinion's David Fickling.

Woodside Energy Group Ltd. is preparing to give the go-ahead for its Louisiana LNG project as Australia's biggest natural gas producer looks beyond its core markets in Asia. The company is "in the process of bringing partners into that development" and wants to make a final decision from this quarter, Chief Executive Officer Meg O'Neill said in an interview with Bloomberg TV on Tuesday. 

What happened overnight

Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping…

Stocks had a mixed reaction and gauges of the dollar fell after US consumer confidence declined the most since 2021 as concern over tariff impacts increases. Australia has its monthly inflation data today as a curtain raiser for the main US CPI on Thursday and which may affect global interest rates along with Aussie and kiwi dollar.

Ukraine is said to have agreed with the US to jointly develop its critical minerals and oil and gas reserves in what would be the first step toward reaching a ceasefire with Russia. Ukraine's cabinet is expected to recommend Wednesday that the pact be signed.

China is said to be boosting scrutiny of outbound investments by domestic firms and their use of proceeds from Hong Kong share sales after record capital outflows put pressure on the yuan.

South Korea's impeached President Yoon Suk Yeol remained determined to hold on to his job as judges wrap up a trial on whether to permanently remove him from office. A ruling is expected in about two weeks.

What to watch

• 11:30 a.m.: Australia Jan. CPI

One more thing...

When the Toffees take the field at Everton FC's brand-new stadium in Liverpool this August, fans in the Club View lounge will rub shoulders with former players, toss back high-end drinks before taking seats in the halfway line zone. An even more VIP crew will be in the Enclosure, a series of fenced-off four-seat loges offering panoramic views of the pitch, recliners, personal TVs for replays and a concierge service to deliver food and order a taxi home. If you have to ask how much it costs, it's not for you—anyway, it's already sold out.

In this aerial view fans arrive for the first ever game, a test match, at Bramley Moore Dock, the new home of Everton Football Club on February 17, 2025 in Liverpool, England. Photographer: Christopher Furlong/Getty Images Europe
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