Sunday, March 2, 2025

House prices rebound

Good morning and welcome back, it's Ainsley here with all the news you need to start your working week.Today's must-reads:• House prices ret
Bloomberg

Good morning and welcome back, it's Ainsley here with all the news you need to start your working week.

Today's must-reads:
• House prices return to growth
• Opposition pledges to buy F-35s
• Europe looks to secure Ukraine

What's happening now

House prices rebounded last month as buyers jumped into the market in anticipation of the first interest-rate cut in more than four years. The Home Value Index for major cities advanced 0.3% in February after two months of declines, property consultancy CoreLogic said. Sydney and Melbourne both recorded gains, as did all other cities except Darwin.

The Liberal-National Coalition will commit an initial A$3 billion for about 28 new Lockheed Martin F-35 fighter jets if it wins power in what are set to be tight elections due by mid-May. The opposition would seek for delivery to start within the next five years, returning to an original plan for the nation to have 100 of the fighter jets.

China's live-fire naval drills in the international waters off Australia, New Zealand and Vietnam, and shooting drills in the Taiwan Strait, are a sign of China's growing confidence as a maritime power, writes Karishma Vaswani for Bloomberg Opinion. This show of military might is a signal to its closest neighbors that they'll have to start relying on each other, or boost their own defense capabilities. They can't expect to depend on the US for backup.

What happened overnight

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

The US dollar finished strong into the weekend after Friday's Oval Office clash between Donald Trump and Volodymyr Zelenskiy. The week ahead has risks from the European Central Bank's interest rate decision and the US monthly jobs report. Locally we have Australian 4Q economic growth data while across the Tasman, the RBNZ is hosting an inflation research conference. However, it's China's National People's Congress where Chinese Premier Li is expected to deliver a report on the nation's 2025 growth target that should impact Aussie and kiwi dollars most.

European leaders sought to assemble what Britain called a "coalition of the willing" to secure Ukraine after any US-brokered ceasefire, as they gathered in London to coordinate defense spending hikes amid concerns of an American pullback. UK Prime Minister Keir Starmer, who hosted the emergency security summit on Sunday, said Britain and France and "one or two others" would work with Ukraine on a "plan to stop the fighting."

Volodymyr Zelenskiy, Ukraine's president, from left, Keir Starmer, UK's prime minister, and Emmanuel Macron, France's president, embrace after holding a meeting during a summit at Lancaster House in London, UK, on Sunday. Photographer: Justin Tallis/AFP

President Trump is on the verge of slapping new tariffs on Canada and Mexico while doubling a levy on China. The long-promised tariffs scheduled to take effect Tuesday would easily be among the most sweeping of the Trump era. They would put a 25% tariff on all imports from Canada and Mexico, except Canadian energy, which would face a 10% rate. He has also said he'll double a tariff on China to 20%. 

The cryptocurrency market roared into March full of optimism, recouping some of the losses from the asset class's worst month since 2022, after Trump once again talked up his plan for a strategic crypto reserve. Still, many of the details of Trump's plan are unknown, including how much the government will actually buy and how the purchases would be funded.

Israel's decision to cut off humanitarian aid to Gaza for the first time in more than a year signals a renewed zero-tolerance attitude toward Hamas after the group rejected a US-led proposal to extend a ceasefire.

What to watch

All times Sydney
• 09:00 a.m.: Australia Feb. S&P Global Australia PMI Mfg
• 11:00 a.m.: Australia Feb. Melbourne Institute Inflation
• 11:30 a.m.: Australia Feb. ANZ-Indeed Job Advertisements

One more thing...

The 97th Academy Awards kick off at 4 p.m. local time in Los Angeles on Sunday, in what is turning out to be one of the more tumultuous and tight races for the coveted best picture prize. Half of the ten films nominated for best picture now have a reasonable chance of winning, according to odds calculated by GoldDerby.com, which aggregates predictions by critics and fans. Anora, a drama about a sex worker who marries the son of an oligarch, is the current favorite.

Mikey Madison who stars in "Anora" during the London Film Festival in 2024. Photographer: Lia Toby/Getty Images
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