Wednesday, March 5, 2025

Australia’s economic inequality highest in over 20 years

Good morning! It's Keira here in Sydney. Here's what you need to know in news today from Australia and beyond...Today's must-reads: Australi
View in browser
Bloomberg

Good morning! It's Keira here in Sydney. Here's what you need to know in news today from Australia and beyond...

Today's must-reads:

What's happening now

Economic inequality in Australia has climbed to the highest level in more than 20 years, according to a highly regarded survey in which more than half of respondents reported a decline in their real incomes. It revealed that post-pandemic, higher incomes have grown faster than middle incomes, while the growth of lower incomes has stagnated.

Australia's economy picked up the pace in the final three months of the year, boosted by a revival in household spending.  Meanwhile, The central bank board doesn't share the market's confidence that a series of further interest-rate cuts will follow last month's easing, Deputy Governor Andrew Hauser said, adding that it's still too soon to declare victory over inflation. 

The surprise resignation of New Zealand's central bank governor leaves many unanswered questions for an institution that prides itself on transparency, not least the reason for his departure. Meanwhile, New Zealand's housing market showed slight signs of life in February as prices rose the most in more than a year, according to CoreLogic New Zealand.

Houses in the Orewa area of Auckland, New Zealand. Photographer: Fiona Goodall/Bloomberg

A tropical cyclone off Australia's northeast coast that's forced evacuations, closed ports and schools in Queensland could derail the government's plans to call an election this weekend — after speculation mounted that Prime Minister Anthony Albanese was on the verge of setting an April 12 ballot. 

Virgin Australia named Dave Emerson as its new chief executive officer, promoting from within its own ranks to end a yearlong search to replace the departing Jayne Hrdlicka. 

And a new long-duration battery being rolled out in Australia can now compete with established technologies such as pumped hydro, said investor Quinbrook Infrastructure Partners, which plans to invest A$3.5 billion in 3 gigawatts of capacity

What happened overnight

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

US stocks jumped after automakers won a one-month delay from US President Donald Trump's newly imposed tariffs on Mexico and Canada. The euro led gains against the dollar, helped by rising German yields amid plans for massive increases in defense spending. Today we get Australian trade and building data, both of which will be hot federal election topics. Across the Tasman, the RBNZ hosts its Inflation Research Conference, a day after its chief Adrian Orr tendered his resignation.

Prime Minister Justin Trudeau is not open to lifting Canada's full package of retaliatory tariffs if Trump leaves any tariffs on Canada in place, according to a senior Canadian government official.

China announced an expansion target of about 5% for 2025 at its annual parliamentary session Wednesday, marking the first time in more than a decade Beijing had set the same goal for three straight years. 

US prosecutors charged ten Chinese citizens and two government agents for computer hacks that targeted dissidents, religious groups, news outlets and American government agencies. The Chinese government allegedly paid a cybersecurity firm Anxun Information Technology Co., also known as i-Soon, to hack and steal information.

Addressing low fertility rates and aging societies is a challenge for many governments, and while policies aimed at supporting families may help, a significant increase in birthrates is unlikely in the near future, writes Bloomberg Opinion's Daniel Moss.

What to watch

• RBNZ's Inflation Research Conference
• Australian monthly imports, exports, building approvals, international trade balance and private sector houses at 11:30 a.m. (Sydney)

One more thing...

And former Macquarie Group managing director Mike Dorrell has turned "poor timing" into a $9 billion fortune at his infrastructure investing firm Stonepeak Partners. Last May Dorrell, the son of a teacher and social worker who grew up in a country town about six-and-a-half hours west of Sydney, spent a bit of that snapping up Tarpon Island, Palm Beach's only private island, for $150 million. Read more here.

10 Tarpon Way on Tarpon Island Palm Beach. Photographer: Felix Mizioznikov/https://www.alamy.com
Follow Us

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Australia Briefing newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.
Unsubscribe
Bloomberg.com
Contact Us
Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022
Ads Powered By Liveintent Ad Choices

No comments:

Post a Comment

Preference center link

...