Magellan agrees to buy Barrenjoey, traders brace for war impact

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Good morning and welcome back. In breaking news, Magellan has agreed to buy Barrenjoey Capital Partners in a deal that valued the upstart Australian investment bank at about A$1.62 billion. As part of the deal, Magellan will buy about 10% in Barrenjoey from Barclays.  But overshadowing all other news this morning, is the US-Israel conflict with Iran. America said it suffered its first casualties in the war, with three service members killed and five seriously wounded. President Donald Trump said in a social media post that Iran's supreme leader, Ayatollah Ali Khamenei, had been killed on the first day of strikes. Tehran confirmed Khamenei's death hours later. For the energy markets, it's a nightmare scenario. About a fifth of the world's oil and LNG typically flows through the Strait of Hormuz every day, and with just a few hours to go until oil markets open, most traders said they expect Brent crude prices to spike from $72.48 a barrel at the close on Friday. Travelers are now trapped in Dubai after the main airport terminal was damaged by a volley of missiles and drones from Iran. And here's the rundown on how Trump's team decided to attack. — Ainsley Thomson, Wellington Bureau Chief What's happening now Prime Minister Anthony Albanese joined global leaders calling for a quick resolution to the crisis in the Middle East. "Khamenei was responsible for the regime's ballistic missile and nuclear program, support for armed proxies and its brutal acts of violence and intimidation against its own people," he said. "His passing will not be mourned." Judgments about the legality of the weekend strikes on Iran are a question for the US and others directly involved in the action. Sydney home prices went sideways in February, even as other major cities powered ahead. Both Sydney and Melbourne recorded flat results, while Perth, rose 2.3% and Brisbane advanced 1.6%, property consultancy Cotality said. Australia's major cities climbed by a combined 0.6%, easing from 0.7% posted in the first month of the year. Insurers are urging legislators to set up a A$30 billion flood defense fund as Australia grapples with surging costs from extreme weather events. Funding would be used on tasks including the addition of more flood-protection infrastructure like dams or levees, and also for a A$10 billion property buyback program targeting the estimated 10,000 dwellings in areas where it isn't possible to mitigate flood risks, the Insurance Council of Australia said. What happened overnight Early signs from the markets point to a shift away from risk. The US dollar surged and the Swiss franc edged higher against major peers in early trading, while the Australian dollar and South African rand led risk-sensitive currencies lower. Benchmark equity indexes in Saudi Arabia and Egypt each slid more than 2% in Sunday trading. The world's largest container carriers are rerouting ships to avoid the Persian Gulf, as a widening military conflict pitting the US-Israeli alliance against Iran threatens to disrupt global merchandise trade. MSC Mediterranean Shipping, the top container line, halted cargo bookings for the Middle East while No. 2 A.P. Moller-Maersk and Hapag-Lloyd suspended all crossings in the Strait of Hormuz. One can look at oil and the Middle East through two lenses, writes Javier Blas for Bloomberg Opinion. Magnify every detail from the attacks on Iran and its responses and a chaotic picture emerges. When the market reopens, oil prices are likely to jump 10%-15% as a result. But seen from a wider angle — looking broadly at the global economy — the energy picture does not appear as scary, even if Brent crude does jump to, say, $80-plus a barrel. Howard Lutnick has so far defied Beltway predictions of his ouster as commerce secretary, but his appearance in the Jeffrey Epstein files has put him in his toughest spot yet. For now, Lutnick doesn't appear to be in immediate danger of losing his job. Trump has shown no interest in punishing his old friend over the relationship, aware that reprimanding Lutnick could raise questions about his own ties to Epstein, which he maintains ended many years ago. What to watch 9:00 a.m.: Feb. S&P Global Australia PMI Mfg 11:00 a.m.: Feb. Melbourne Institute Inflation 11:30 a.m.: 4Q Australia Company Profits, Inventories Australia Feb. ANZ-Indeed Job Advertisements One more thing... Honor's humanoid robot danced, backflipped and shook hands at MWC Barcelona 2026 as the Chinese device maker debuted its first own-brand android. The company also unveiled its robot phone, which will go on sale in China later this year. Shenzhen-based Honor spun out from Huawei in 2020. Originally a budget brand, it expanded into premium devices and foldable phones. A humanoid robot by Honor in Barcelona. Photographer: Angel Garcia/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. 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