Latest / Best of Business / Murray Olds: Australian correspondent on the Australian stock market bouncing back after earlier slump

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Murray Olds: Australian correspondent on the Australian stock market bouncing back after earlier slump · Best of Business

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  Speaker 2: Make Murray Olds in Australia, Murray, good afternoon.
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  Speaker 3: Yeah, good ay, buddy, here you going good?
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  Speaker 2: Thank you. Guys have had a good rally today.
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  Speaker 3: Yeah. Literally minutes after they opened ten am Australian time,
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  Speaker 3: Eastern time, midday New Zealand time, and literally in minutes
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  Speaker 3: the Australian sock market up six percent in that very
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  Speaker 3: very early trade. I mean they must have been there
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  Speaker 3: this morning having their whetbeaks, the traders looking what's happening
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  Speaker 3: in Washington and thought, buddy, hell I betting go into
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  Speaker 3: work this morning on time, because it was all it
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  Speaker 3: was all hands on deck. Up six percent and early
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  Speaker 3: trade the ASX, the Australian dollar up as well. Last
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  Speaker 3: time I looked, Australian iron ore was up two and
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  Speaker 3: a half two point two percent. I beg your pardon,
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  Speaker 3: which is great if China is still going to be
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  Speaker 3: able to afford to buy Australia's iron ore. Because of course,
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  Speaker 3: the baseline tariff that Trump is now imposing worldwide ten percent,
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  Speaker 3: Australia was already at that mark, so ten percent for
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  Speaker 3: the rest of the world for ninety days, but heaven's
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  Speaker 3: above one hundred and twenty five percent on China. So
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  Speaker 3: what does that mean for Australia, Because that's the big
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  Speaker 3: question over here. Australia a big your pardner, China by
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  Speaker 3: far Australia's biggest trading partner. Just enawmous volumes in Australia's
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  Speaker 3: favor here that Australia sells up into China, a massive market.
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  Speaker 3: So economists now over here calling on the Reserve Bank
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  Speaker 3: of Australia to cut the cash rate. Now they're not
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  Speaker 3: seddled to meet again until next month, so they want
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  Speaker 3: an emergency meeting of the RBA. They want a half
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  Speaker 3: percent cut now, half percent next month, or if they're
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  Speaker 3: not going to do that, meet next month and give
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  Speaker 3: us half of one percent. So it really is that
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  Speaker 3: they are now calling for a mega rate cut. They're
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  Speaker 3: saying Ryan not zero point twenty five, but they won
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  Speaker 3: half a percent cut next time the men meets, unless
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  Speaker 3: they meet tomorrow, and that's not going to happen. So
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  Speaker 3: it really is. It's kind of like you woke up
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  Speaker 3: this morning and what the hell's going on? Because the
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  Speaker 3: world had changed overnight. And look, there are people growing wine,
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  Speaker 3: people growing beef, people growing wheat, people digging up cole
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  Speaker 3: and I and or they just don't know what's going
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  Speaker 3: to happen tomorrow.
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  Speaker 2: No, none of us do, do we. The most sleep
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  Speaker 2: we get is when he's sleeping. I have found now Australia,
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  Speaker 2: this is interesting. So Beijing has come to canber and said, look,
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  Speaker 2: let's jointly oppose Trump, and elbow is actually resisting this.
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  Speaker 3: Look an intriguing cheeky you might say. The Chinese ambassador
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  Speaker 3: to Australia very well spoken, very well regarded ofly. He
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  Speaker 3: wrote an op ed piece for the nine newspapers that
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  Speaker 3: is the Fen Review, the City Morning Herald and the
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  Speaker 3: Age newspaper in Melbourne. And as you say, he said,
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  Speaker 3: there was an invitation from Beijing to Australia to quote,
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  Speaker 3: join hands with Beijing to resist Donald Trump. We should
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  Speaker 3: be in solidarity with Beijing. And as you say, the
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  Speaker 3: Prime Minister here, Anthony Albanesi, he brushed that off. We'll
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  Speaker 3: speak for ourselves, he said. The trade relationship, he was
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  Speaker 3: very quick to point out though, is vitally important for Australia.
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  Speaker 3: It does represent and I haven't heard this stet before before.
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  Speaker 3: Albanzi mentioned this today Ryan, the trade with China, this
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  Speaker 3: is is very important. It represents one and four jobs
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  Speaker 3: in Australia. That's a huge number. That's a big, big number.
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  Speaker 3: One and four jobs are directly linked to Australia's trade
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  Speaker 3: with China, by far our biggest trading partner. And so
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  Speaker 3: what happens to China, not just the US, what happens
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  Speaker 3: to China materially affects Australia.
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  Speaker 2: Absolutely. We will the same tightrope you guys to trying
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  Speaker 2: to balance those two interests. Murray, thank you for that.
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  Speaker 2: Great to have you on as always, Murray Old's our
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  Speaker 2: Australia correspondent.
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