Super fund salaries, bond demand, Qantas profit

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Good morning! There's a lot of news to digest today. Australia's top pension funds may struggle to fill vacancies in their top ranks as they can't offer lucrative pay packages, compared to their global peers. Investors are piling into Australian bonds, attracted by yield and shelter from the AI scare trade. Meanwhile, the country's home owners may have to brace themselves for another rate hike after stronger-than-expected inflation in January. - Sharon Klyne, private credit reporter. What's happening now Some of the country's most influential finance roles are up for grabs. However, the catch for executives tempted to move to Australia is that the tempting lifestyle may come with a slimmer pay packet. Investors are piling into Australian bonds as one of the world's safest and highest-yielding sovereign debt markets offers shelter to those fleeing an AI scare trade. Inflows into Australian bond funds tracked by Morningstar Inc. topped A$4 billion last year, the most in four years. Lynas Rare Earths has overtaken Australian national carrier Qantas Airways by market capitalization, as concerns about China's dominance of critical minerals lift the miner's stock. Qantas profits climbed as new and more fuel-efficient Airbus aircraft replaced the airline's aging domestic fleet Australia's heritage laws are exacerbating the country's housing affordability crisis by protecting hundreds of thousands of low-value buildings without weighing the economic costs, according to a report by the Centre for Independent Studies. The Sydney city skyline from the suburb of Balmain in Sydney, Australia. Lisa Maree Williams/Bloomberg Australia's January inflation was stronger than expected, driven by housing costs and suggesting policy settings may need to be tightened further. However, Reserve Bank governor Michele Bullock thinks judging the economy is "a little more difficult" now. The Reserve Bank of New Zealand is proposing banks provide nationwide access to free cash services, pushing back against years of branch closures and ATM fees to withdraw money. Software maker WiseTech Global CEO Zubin Appoo sees more AI-related savings ahead, after announcing plans to cut about 2,000 jobs - almost 30% of the company's workforce. What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… US stocks climbed as Nvidia Corp.'s results beat expectations, evidence the outlook for artificial intelligence remains intact. A gauge of the greenback declined, weighed down by trade uncertainty. Aussie dollar outperformed major peers as commodities rallied and after Wednesday's domestic inflation reading beat estimates, kiwi went along for the ride. Australia has private capital expenditure data on deck while New Zealand sees how business confidence is traveling. ASX futures point to solid start for local equities. US President Donald Trump will sign a directive to raise his global tariff to 15% "where appropriate", said US Trade Representative Jamieson Greer on Bloomberg Television. A truck moves a shipping container on the dockside at the Port of Felixstowe in the UK. Photographer: Chris Ratcliffe/Bloomberg Ukrainian President Volodymyr Zelenskiy said he and President Trump discussed preparations for a meeting between negotiators from their countries planned for Thursday in Geneva. What to watch • 11.30 a.m. Sydney - Private Capital Expenditure for 4Q One more thing... Bombay Sweet Shop, a Mumbai-based dessert brand, has plans to introduce Indian desserts to the global community by melding well-recognized flavors with classic Indian techniques. The traditional Indian sweet known as 'barfi' at a store. Photographer: Dhiraj Singh/Bloomberg NEW: Explore live streaming news and interviews, documentaries, reporter analysis and more, all in one place. Check out Bloomberg.com/videos. Enjoying Australia Briefing? You might also like: Markets Daily for what's moving in stocks, bonds, FX and commodities Next China for dispatches from within the world's second-largest economy on where China stands now — and where it's going next Markets Daily India for key news and movers in this fast-growing market before the trading day starts Get weekly updates on these industries with our new Retail Monitor, Auto Monitor, Defense Monitor, Real Estate Monitor, Banking Monitor newsletters Explore all Bloomberg newsletters at Bloomberg.com. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us 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 |