RBNZ holds rates, Chalmers' pharma tariff concerns

Good morning everyone, it's Ben here in a windy Melbourne. Here's what's making news today.Today's must-reads:• RBNZ holds interest rates to

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Good morning everyone, it's Ben here in a windy Melbourne. Here's what's making news today. Today's must-reads: • RBNZ holds interest rates to monitor inflation • Australia concerned over Trump pharma tariffs • Passenger addresses, diets stolen in Qantas leak

What's happening now

The Reserve Bank of New Zealand joined its Australian counterpart on Wednesday to keep interest rates unchanged, pausing after six straight cuts as inflation quickens. Policymakers said their hold would allow them to assess whether weakness in the domestic economy is persisting, and how inflation and inflation expectations evolve before their next meeting in August. Meanwhile,  RBA Deputy Governor Andrew Hauser said the bank would  refresh its research strategy to support policymaking, a day after it shocked investors and economists by leaving interest rates unchanged. Australia's government is "urgently seeking" more detail on US President Donald Trump's threat to impose 200% tariffs on pharmaceutical imports to the US, Treasurer Jim Chalmers said. Jim Chalmers, Australia's treasurer. Photographer: Hilary Wardhaugh/Bloomberg Qantas said personal information belonging to 5.7 million customers, ranging from names and addresses to phone numbers and meal preferences, were stolen in last week's cyberattack, as the fallout from the latest airline security breach becomes clearer. Macquarie Group's asset management arm is considering selling its 50% stake in a chemical storage terminal at Singapore's Jurong Island, according to people familiar with the matter. Lifestyle Communities shares tumbled the most in 16 years after an Australian state tribunal ruled that some of the retirement village operator's exit fee agreements should be scrapped.

What happened overnight

Here's what my colleague, market strategist Mike "Willo" Wilson says happened while we were sleeping… US stocks rose despite tariff tensions with a new 'greed' narrative replacing the FOMO mantra. In the AI space, Nvidia's market cap topped $4 trillion, with the stock now accounting for about 7.5% of the S&P 500 Index. Trump slapped a 50% tariff on Brazil which saw that nation's currency, the Real, plunge. Currencies were steady with the Aussie and kiwi little changed. Bonds rallied after a strong US auction saw dip buyers emerge. Apart from some NZ migration data and bond sales, today's local calendars are bare. ASX futures point to a solid opening in equities. US President Donald Trump unveiled a new round of tariff demand letters on Wednesday, including a 50% rate on Brazil, one of the highest so far announced for the levies which are set to hit in August. Linda Yaccarino, who was hired two years ago by Elon Musk as chief executive officer of X, is stepping down less than three months after the social-media platform was absorbed by Musk's artificial intelligence startup, xAI. Linda Yaccarino, outgoing CEO of X Corp. Photographer: PATRICK T. FALLON/AFP A proposed plan by India to spur local production of rare-earth magnets has drawn initial interest from a clutch of large conglomerates, people familiar with the matter said, as the country seeks to cut its reliance on China for these vital electric-vehicle and wind-turbine materials. In a remarkable achievement, the One Big Beautiful Bill Act got worse with each iteration before finally being enacted last week, writes Bloomberg's Editorial Board.

What to watch

All times Sydney: • 8.45 a.m. — New Zealand migration figures for May

One more thing...

Apple is planning to introduce its first upgrade to the US$3,499 Vision Pro headset as early as this year, aiming to improve the performance and comfort of a device that has been slow to catch on with consumers. The updated Vision Pro will include a faster processor and components that can better run artificial intelligence, according to people with knowledge of the matter. There also will be a new strap to make it easier to wear the headset for long periods of time. A customer tries the Apple Vision Pro mixed reality glasses device. Photographer: JULIEN DE ROSA/AFP

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