Australia Briefing
Hey there, Keira here reporting from my home town, Melbourne. Here’s all the news you need to know to start your morning.Today’s must-reads:
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Hey there, Keira here reporting from my home town, Melbourne. Here’s all the news you need to know to start your morning.

Today’s must-reads:
• HSBC weighs selling Aussie mortgages
• Woodside partners with China Resources on gas
• Village Roadshow files for bankruptcy 

What's happening now

HSBC Holdings is assessing investor interest in a portfolio of Australian mortgages, and is discussing the sale of about A$13 billion of home loans as the lender pushes ahead with a global overhaul of its businesses, according to people familiar with the matter. The company is undertaking a global restructuring plan that includes winding down various businesses and slashing management ranks. 

Woodside Energy has signed an agreement with China Resources Gas International to send liquefied natural gas to the Asian country, the first binding supply deal for the fuel between Chinese and Australian companies in years. The move also comes as Chinese firms are reluctant to procure additional gas from the US, the biggest exporter, after Beijing implemented tariffs on fuel from the US last month.

Franklin Templeton has trimmed its Australian bond holdings as it anticipates shallower interest-rate cuts in the nation compared with market estimates. “We’ve gone from being more overweight Australian duration to less overweight,” Andrew Canobi, a Melbourne-based director of fixed income at the firm said, referring to a measure of a portfolio’s sensitivity to changes in interest rates.

Village Roadshow Entertainment  — the film production house behind The Matrix and Ocean’s sagas — filed for bankruptcy in the US amid a long-drawn legal battle with Warner Bros Discovery. The company had struggled to bounce back from the pandemic slump and the 2023 Hollywood writers’ strike. Its liquidity problems, however, stemmed largely from an ongoing arbitration with long-standing partner Warner.

Ramelius Resources will buy gold developer Spartan Resources in a transaction valuing the smaller Australian producer at A$2.4 billion, as miners seek more supply amid soaring bullion prices.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

US stocks climbed further and the dollar fell to about a four-month low after US retail sales data disappointed. Aussie and kiwi outperformed peers as they traded above their 100-day moving averages for the first time since October. The gains should hold as markets await forward guidance from Wednesday’s Federal Reserve meeting. That said, a speech by RBA’s Hunter or a call between Trump and Putin to discuss Ukraine later today may see those gains tested in the interim.

The Kremlin confirmed that Russian President Vladimir Putin is due to speak to President Donald Trump on Tuesday amid the US push for a ceasefire in the war in Ukraine. The US is pressing for Russia to agree to a 30-day ceasefire that Ukraine has said it’s ready to accept.

Disappointing retail sales last month added to concerns of a pullback in consumer spending in the US, while a pair of business surveys suggested growing caution amid risks of escalating trade wars.

Chinese consumption, investment and industrial production exceeded estimates to start the year, pointing to signs of resilience for an economy still in need of more. Meanwhile, Trump said Chinese leader Xi Jinping would visit Washington soon amid brewing trade tensions between the world’s two largest economies.

President Donald Trump ratcheted up pressure on Iran to rein in the Houthis, raising the possibility of retaliatory strikes against the Islamic Republic if the militant group in Yemen doesn’t stop its attacks.

What to watch

• 10:15 a.m. Speech from RBA’s Chief Economist Sarah Hunter

One more thing...

A decade after being engulfed by a controversy that culminated in multiple enforcement actions and a regulator clampdown, Wall Street’s infamous dark pools — or off-exchange trading platforms — are touting a way to buy and sell stocks that’s even more opaque.

Illustrator: Jinhwa Jang
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