Economic Shifts, Cyclone Crisis, and Trump's Trade War

Miko Santos

Mar 05, 2025

Transcript

Today is March 5, and here is your evening news briefing!

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let's dive into today's news!

Australian Economy Shows Signs of Recovery 📈

The latest national accounts have revealed some much-needed positive news for the Australian economy:

GDP grew by 0.6% in the December quarter 2024 (double the previous quarter's growth)
Annual growth now stands at 1.3% with momentum building
GDP per capita increased 0.1%, breaking a seven-quarter decline streak
Household spending rose 0.4% after remaining flat previously
Household saving ratio edged up slightly to 3.8%

As Treasurer Jim Chalmers noted, "Inflation is down, incomes are strengthening, unemployment is very low, interest rates are coming down, and now growth is picking up as well." The data points to what officials are calling a "solid rebound" after a period of economic softness.

Cyclone Alfred Intensifies: Gold Coast Under Threat 🌀

Gold Coast authorities have issued urgent warnings as Cyclone Alfred intensifies to a high-end Category 2, with wind gusts expected to match Category 3 strength. This is shaping up to be the region's most severe weather event since 1954.

Key points to know:

Expected landfall between Caboolture and Tweed Heads early Friday morning
Potential rainfall of up to 800mm over 2-3 days
All beaches closed with "extreme wave conditions"
Evacuation centers open at Runaway Bay, Burleigh Heads, Pimpama and Nerang
Gold Coast Airport closing from 4pm today
All public transport suspended Thursday and Friday
Residents urged to be home by 6pm tonight and prepare for power outages

Prime Minister Anthony Albanese has activated the Australian Government Disaster Response Plan, with the ADF now officially engaged. "There's no Tweed border here," Albanese emphasized. "This is not recognized by the cyclone, and it certainly shouldn't be recognized by government's responses."

Leadership Change at Reserve Bank of New Zealand 🏦

In a significant development for New Zealand's financial sector, Reserve Bank Governor Adrian Orr has announced his resignation effective March 31st after serving since March 2018.

During his tenure, Orr:

Led implementation of the new Reserve Bank Act and Deposit Takers Act
Oversaw development of strategies related to the Future of Money, Climate Change, and Māori Access to Capital
Leaves with "consumer price inflation at target and an economy in cyclical recovery"

Deputy Governor Christian Hawkesby will serve as Acting Governor until March 31, after which a temporary Governor will be appointed for up to six months.

ASX Posts 2025 Low Amid Global Trade Tensions 📉

The Australian share market recorded its lowest close of 2025, with the S&P/ASX200 dropping 57 points (0.70%) to 8141.1 as US President Donald Trump threatens to expand tariffs to more countries.

Market highlights:

Energy stocks posted a third consecutive day of losses (down 1.7%)
Supermarket giants hit hard: Coles (-4.4%) and Woolworths (-3.9%)
Consumer staples was the worst-performing sector (-3.6%)
Utilities was the only sector to finish in the green (+0.11%)
Iron ore giants BHP and Rio Tinto saw modest gains following China's stimulus announcement

Meanwhile, Treasurer Jim Chalmers plans to warn insurance companies against adding stress to cyclone-affected residents, emphasizing that their response shouldn't "add unnecessarily to that stress."

Trump Announces "Reciprocal Tariffs" in Fiery Address to Congress 🔄

In a dramatic State of the Union address that's already sending shockwaves through global markets, President Trump has unveiled his most aggressive trade policy yet - "reciprocal tariffs" set to begin April 2nd.

What you need to know:

Trump declared "America's momentum is back" with the economy "on the verge of a comeback the likes of which the world has never witnessed"
The reciprocal tariff policy means "whatever they tax us, we will tax them" - targeting any country charging higher tariffs on American goods
Specifically called out Mexico and Canada for allowing fentanyl into the US and receiving "subsidies of hundreds of billions of dollars"
Announced $1.7 trillion in new investment commitments since his election victory
Created a new "Department of Government Efficiency" headed by Elon Musk to cut government waste
Called for major tax cuts including no tax on tips, overtime, or Social Security benefits

The President's bold economic agenda comes as markets were already jittery about potential trade disruptions. As one trader told me, "We're bracing for significant volatility as April 2nd approaches - these aren't just threats, they're concrete policies with implementation dates."

Stay with readmencari.com for continuous updates on these developing stories and more from across Australia, New Zealand, and the globe. Subscribe to our newsletter for daily briefings delivered straight to your inbox!

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