Australia Briefing
Good morning, it’s Angus here in Sydney. Here’s what you need to know as we head into the weekend. Today’s must-reads: • RBA chief calls for
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Good morning, it’s Angus here in Sydney. Here’s what you need to know as we head into the weekend.

Today’s must-reads:
• RBA chief calls for patience under tariff regime 
• One family’s A$750 million property splurge
• Australians are ditching big pension funds

What's happening now

Central bank chief Michele Bullock last night called for patience as policymakers try to come to grips with how the new US tariff regime might affect global demand and supply. “It will take some time to see how all of this plays out,” RBA Governor Bullock said in a speech in Melbourne. 

A growing number of Australians are ditching big pension funds and taking control of their retirement via self-managed super funds. Money invested in SMSFs hit a record A$1 trillion late last year, serving as a reminder to superannuation chiefs that they need to adapt to keep winning new customers.

Swanston Street in downtown Melbourne. A growing number of Australians are ditching big pension funds. Photographer: James Bugg/Bloomberg

Australia’s financial crime watchdog has revealed a A$750 million property splurge linked to international fugitives, showing just how attractive local real estate has become for the criminal set. Intelligence networks detected the one-week spree last year, Brendan Thomas, the chief executive officer of Austrac, said in an interview.

Stock markets are a mess in the wake of Donald Trump’s trade war, following a tumultuous week that’s caused anxiety for investors across Australia. This week on the Bloomberg Australia Podcast, Chris Bourke and cross asset reporter Rich Henderson unpack the unprecedented market turmoil and ask: how does this all play out?

Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Terminal clients: Run {NSUB AUPOD <GO>} on your desktop to subscribe.

Anglo American said it’s still in talks with Peabody Energy Corp. to sell its coal portfolio for $3.78 billion, adding that a fire at its Australian operations hadn’t caused damage. Conditions in the mine “remain stable, with data and camera footage showing no evidence of damage,” the company said.

What happened overnight

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

US stocks plunged and the dollar had its worst day since November 2022 with both caught between the cross-hairs of weak data and a worsening trade war.  Trump has ratcheted tariffs on China up to 145%, but all that seems to be doing is steering investors away from US assets and rattling confidence. The Aussie and kiwi dollars are set for their best weeks this year, but it was yen and Swiss franc that outperformed Thursday as scared money sought havens. Michele Bullock urging patience while markets get a handle on things hasn’t stopped rates traders pricing in a one-in-three chance of a 50 basis-point cut next month.

Trump said his tariffs may cause “transition problems” but expressed confidence in his plan, after the White House clarified US tariffs on China rose to 145%. “There’ll be a transition cost, and transition problems, but in the end it’s going to be a beautiful thing,” Trump said Thursday during a Cabinet meeting. “We’re in very good shape.”

Federal Reserve Bank of Boston President Susan Collins said the central bank may yet lower interest rates later this year, but tariff-driven inflation could delay further cuts. “Renewed price pressures could delay further policy normalization, as confidence is needed that the tariffs are not destabilizing inflation expectations,” Collins said.

Swiss pharmaceutical giant Novartis AG said it would invest $23 billion in the US over the next five years to ensure all its key drugs for Americans are made in the country, news that comes as President Donald Trump has promised to impose tariffs on global drugmakers.

China announced it would curb imports of Hollywood films, opening a new front in its trade war with the US hours after President Donald Trump’s record tariffs took effect. Authorities vowed on Thursday to “moderately reduce” the number of US movies allowed into the world’s second-largest economy

What to watch

• AMP annual general meeting in Sydney

One more thing...

YouTube star IShowSpeed is wooing US consumers with futuristic China tech. As the world’s second-largest economy draws the ire of US President Donald Trump, IShowSpeed’s most recent trip to China made him an unlikely ambassador for the Asian nation.

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