Trump’s 15% global tariff, soaring banks, UniSuper on tech

Trump's 15% global tariff, soaring banks, UniSuper on tech

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Good morning, it's Angus here in Sydney. Over a fast-changing weekend, US President Donald Trump announced a 15% global tariff, applicable to all foreign imports, following the rejection of his old tariff regime by the US Supreme Court. Australia is now examining all its options. Markets are also making forceful moves. There's been a pocket of outperformance among Australian banks, for example. Meanwhile, a top UniSuper executive has brushed aside concerns about the global tech downturn. — Angus Whitley, Global Business reporter What's happening now Australia's government said it will "examine all options" after Trump imposed a 15% tariff on foreign imports. "We have consistently advocated against these unjustified tariffs," Trade Minister Don Farrell said Sunday. "We are working closely with our Embassy in Washington to assess the implications and examine all options." The chief investment officer of UniSuper, one of Australia's largest pension funds, is brushing aside concerns about the downturn in global tech stocks, saying that spending in the sector can support other parts of the market. Worries that AI will erode software-company revenues have triggered sharp market swings in recent weeks. A surge in profits is propelling Australian bank shares above their global peers this year, offering a rare pocket of outperformance for investors grappling with artificial intelligence-driven market swings. Earnings from banks including Commonwealth Bank of Australia are being supported by a strong housing market that's bolstering mortgage growth. Prime Minister Anthony Albanese dismissed the idea of immigration cuts or tighter border checks, even as electoral polls show a surge in support for the country's hard-right One Nation Party. Support for One Nation has jumped this year to 27%, above the main opposition's primary vote of 18%, according to a Newspoll for the Australian newspaper. New Zealand's economy has room to recover this year without generating excessive inflation, Reserve Bank Governor Anna Breman said. "We expect declining tradables inflation to bring New Zealand's inflation rate back within our target range, while the more persistent inflation pressures continue on their gradual path lower," Breman said in a speech Friday in Christchurch.  What happened overnight Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… The dollar snapped a four-day rally Friday on news of the US Supreme Court's ruling and Trump's reflex global 10% tariff. The Aussie and kiwi edged higher into the weekend but eased early Monday trade after Trump dialed the same tariff up to 15%. Stocks advanced while bonds slipped as traders deemed the rejection of the US president's tariff program to be a potential stress on government finances. Highlights this week are Australia's inflation reading on Wednesday, while New Zealand has business and consumer confidence data after that. ASX futures indicate a firm start for local equities. The most consequential rebuke of Trump's second term isn't going to stop him from wielding tariffs or disrupting the global economy. But the president's ability to respond rapidly to geopolitical shifts and perceived slights with tariffs will never be the same. President Trump speaks during a news conference in the James S. Brady Press Briefing Room of the White House in Washington, DC, on Feb. 20. Yuri Gripas/ABACAPRESS.COM The European Parliament's trade chief will propose freezing the ratification process of the European Union's trade deal with the US until they've received details from the Trump administration on its trade policy. "Pure customs chaos on the part of the US government," Bernd Lange, chairman of the parliament's trade committee, wrote on social media Sunday. "Nobody can make sense of it anymore." Senior US officials said Trump's tariff defeat at the Supreme Court won't unravel deals negotiated with US partners as they sought to defend the administration's assertive trade policies. Deals made with partners including China, the European Union, Japan and South Korea remain in place, US Trade Representative Jamieson Greer said Sunday on CBS's Face the Nation. Jamieson Greer, US trade representative, center, and Howard Lutnick, US commerce secretary, left, during a news conference in Washington, DC, on Friday. UPI Donald Trump called on Netflix to fire board member Susan Rice or "pay the consequences," after she said that Democrats would take action against corporations that "take a knee" to the president. Corporations, news organizations and law firms that went along with Trump's demands for loyalty now see their actions were unpopular, Rice said on a podcast. The US Secret Service said an armed man was shot and killed after entering a secured area at Trump's Mar-a-Lago estate in Florida even as the president spent the weekend in Washington. The man was carrying ``what appeared to be a shotgun and a fuel can," the Secret Service said. A top cartel leader was killed during a raid carried out by Mexican authorities in the western state of Jalisco, fueling clashes and roadblocks across the country. A Mexican federal agent stands guard near a bus set on fire by gangs in Zapopan, Jalisco state, on Feb. 22. AFP What to watch • No major scheduled events One more thing... Nvidia Corp. has for years played a key role in powering the stock market to record highs. But as skepticism about artificial intelligence mounts, Wall Street is increasingly concerned that the chip giant's earnings report this week will weigh down the shares — no matter what the results say. 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. 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