Trumponomics wreaks havoc; auctions boom; WiseTech's $4b bid
Published: May 25, 2025
Trumponomics wreaks havoc; auctions boom; WiseTech's $4b bid
News in brief
Trumponomics is wreaking havoc on financial markets, and over the past three days pronouncements by the US President have sent the Aussie dollar back to 65 US cents, rattled equity markets and pushed local uranium miners sharply higher.
It was a big weekend for the auction market with 2500 houses up for sale, just days after the Reserve Bank cut interest rates, and it didn’t disappoint. The preliminary clearance rate was a bit over 71pc – the second highest of the year, according to Cotality.
Market leader WiseTech Global is expected to announce the acquisition of American software firm e2open for $4 billion this week.
Nationals leader David Littleproud says he has received assurances from the Liberal Party that they are now prepared to accept four policy areas the Nationals insists need to be part of any Coalition deal.
Rio CEO Jakob Stausholm was forced to step down from the mining giant amid strained relations with company chair, Dominic Barton, according to media reports.
Fear-o-meter
If you want to see the power of interest rates, check out the weekend’s auction results. The preliminary clearance rate came in at 71.3 per cent, the second highest this year. The only time the clearance rate was higher was immediately after the February rate cut.
Three weeks ago, the clearance rate was close to its lowest point this year. It’s incredible the difference a rate cut can make.
Prices are not going backwards. Melbourne is arguably the hottest market at the moment. About three-quarters of homes up for auction were sold, and the median house price is now just over $1 million.
Sydney has slowed a touch though 72 per cent of homes were sold under the hammer, according to Cotality (formerly known as CoreLogic). Sydney’s median house price is now just under $2m.
Who's talking today?
On investing in a Donald Trump world, starting with how investors have handled the last few months:
"Definitely a lot of fear and maybe not so much greed. You know, I would say that there's definitely a reordering of the global investing landscape and a recalibrate, a recalibration of portfolios. The days of putting your money on the S&P, US bond market, US dollar assets and letting it ride are over. And so diversification is really the name of the game.
We've obviously seen how one of the most prominent investors in the United States is sitting on record piles of cash. So cash is king, diversification into European assets, potentially also to China, new economy, also Southeast Asia. And this recalibration, I think, is very much underway, although it's not necessarily resulting in disorderly trading."
It’s Monday the 26th of May, and Trumponomics sends the Aussie dollar and uranium stocks higher, the local housing market bounces, and Wisetech Global prepares to bid $4b for a US software group. Plus, Nationals leader David Littleproud is under pressure, and the boss of Rio Tinto is forced out.
Greed-o-meter
| Rank | Varietal | Exports YOY |
|---|---|---|
| 1 | Shiraz | +25pc |
| 2 | Chardonnay | -5pc |
| 3 | Cabernet Sauvignon | +13pc |
| 4 | Pinot Gris / Grigio | -10pc |
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Australia’s second largest wine group Australian Vintage, which owns McGuigan, Tempus Two and Nepenthe, warned late last week that sales are likely to be 3 per cent below last year. That's despite recent figures from Wine Australia showing local wine exports are rising, driven by increased demand from China. For the 12 months to the end of March, Australia exported about 647 million litres of wine - though the most popular varietals for export is changing:
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Source: Wine Australia
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