EU agrees on trade deal, war hits wheat farmers

The EU and Australia agree to a free-trade deal, defying the US.

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Good morning, the European Union and Australia have inked a free-trade agreement that will open new markets for Australian producers, while the nation's wheat farmers are scaling back planting as concerns around fertilizer supplies mount due to the Iran war. Elsewhere, there are signs Iran and the US are in talks to end the conflict with President Donald Trump signaling Iran had offered a "present" as a show of good faith in the negotiations. The possible breakthrough comes amid reports the Pentagon is planning to deploy an elite army unit to the Middle East. - Sharon Klyne, private credit reporter What's happening now The European Union and Australia agreed to a free-trade deal, wrapping up almost a decade of talks as the two sides push to tighten ties and reinvigorate a rules-based order that's under assault from the Trump administration. Ursula von der Leyen, left, and Anthony Albanese in Canberra. Photographer: Hilary Wardhaugh/Bloomberg Wheat farmers in Australia are paring back plantings as concerns over fertilizer supplies mount, while BHP sees the global potash market tightening over the next decade — signs that the war in Iran is disrupting operations on farms around the world. One of Australia's largest pension funds, Hostplus, is considering offering cryptocurrencies as an investment option to its members, an asset class that's so far been largely shunned by its industry rivals. Australian artificial-intelligence start up Firmus Technologies appointed three new company directors ahead of an expected initial public offering later this year. Meanwhile, Singapore energy provider Sembcorp Industries has shortlisted banks for an about A$3 billion loan to fund its purchase of Australia's Alinta Energy, a further step in the firm's strategy to expand beyond its home market. A cyclone that menaced Australia's northeast coast last week now threatens to disrupt energy and mining operations in the country's west. Canberra faces a potential energy crunch amid global disruptions linked to the war in Iran. Bloomberg's Ben Westcott and Macquarie University's Lurion de Mello discuss the issues on Bloomberg Television. What happened overnight Wall Street traders grappling with a range of possible outcomes for the war in Iran drove stocks away from session lows amid hopes for talks to end a conflict that kept dragging on. Elsewhere, Asian investors are struggling to adjust to the outsized market swings driven by rising oil prices while the Iran war rages on. The S&P 500 pared a drop that earlier approached 1%. President Donald Trump said Secretary of State Marco Rubio and Vice President JD Vance alongside special envoys are involved in negotiations with Iran. The US and regional mediators are discussing the possibility of holding high-level peace talks as soon as Thursday, but await a response from Tehran, Axios reported. President Trump signaled Iran had offered a "present" as a show of good faith in negotiations the US leader has claimed are ongoing to end a 25-day conflict. The thaw comes amid reports the Pentagon is planning to deploy an elite army unit to the Middle East. The supply shockwaves from the US and Israel's war in Iran are spreading across the global economy, raising concerns about an inflation hit to companies and consumers that will require policymakers to raise borrowing costs. New Zealand's central bank governor Anna Breman signaled policymakers won't rush to raise interest rates in response to the Middle East conflict, while the government's response to the impact of rising fuel costs on households is being limited to low and middle-income working families. Anna Breman, governor of the Reserve Bank of New Zealand. Photographer: Mark Coote/Bloomberg What to watch • Australian February inflation: 11.30am Sydney time One more thing... Netflix's BTS comeback show drew 18.4 million viewers globally, underscoring the demand for real-time events anchored by top-tier talent. The 60-minute program, staged at Gwanghwamun Square in central Seoul, was the K-pop group's first full performance since late 2022. BTS perform onstage during their comeback concert at Gwanghwamun Square in Seoul on March 21. Source: Kyodo News/Getty Images/Kyodo News Stills NEW: Explore live streaming news and interviews, documentaries, reporter analysis and more, all in one place. Check out Bloomberg.com/videos. Enjoying Australia Briefing? 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