Murray Olds: Australian correspondent on the Australian stock market bouncing back after earlier slump

Over in Australia, stocks have surged after an earlier crash brought about by Donald Trump's new tariffs. 

The ASX climbed more than 6 percent in early trade, while on Wall Street the S&P 500 climbed 9.5 percent.

Australian correspondent Murray Olds says this has prompted calls from economic experts to cut the OCR ahead of the Reserve Bank's next meeting.

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Episode Transcript

Speaker 1 (00:09):
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Speaker 2 (00:16):
Make Murray Olds in Australia, Murray, good afternoon.

Speaker 3 (00:19):
Yeah, good ay, buddy, here you going good?

Speaker 2 (00:21):
Thank you. Guys have had a good rally today.

Speaker 3 (00:23):
Yeah. Literally minutes after they opened ten am Australian time,
Eastern time, midday New Zealand time, and literally in minutes
the Australian sock market up six percent in that very
very early trade. I mean they must have been there
this morning having their whetbeaks, the traders looking what's happening
in Washington and thought, buddy, hell I betting go into

(00:44):
work this morning on time, because it was all it
was all hands on deck. Up six percent and early
trade the ASX, the Australian dollar up as well. Last
time I looked, Australian iron ore was up two and
a half two point two percent. I beg your pardon,
which is great if China is still going to be
able to afford to buy Australia's iron ore. Because of course,

(01:06):
the baseline tariff that Trump is now imposing worldwide ten percent,
Australia was already at that mark, so ten percent for
the rest of the world for ninety days, but heaven's
above one hundred and twenty five percent on China. So
what does that mean for Australia, Because that's the big
question over here. Australia a big your pardner, China by
far Australia's biggest trading partner. Just enawmous volumes in Australia's

(01:33):
favor here that Australia sells up into China, a massive market.
So economists now over here calling on the Reserve Bank
of Australia to cut the cash rate. Now they're not
seddled to meet again until next month, so they want
an emergency meeting of the RBA. They want a half
percent cut now, half percent next month, or if they're

(01:54):
not going to do that, meet next month and give
us half of one percent. So it really is that
they are now calling for a mega rate cut. They're
saying Ryan not zero point twenty five, but they won
half a percent cut next time the men meets, unless
they meet tomorrow, and that's not going to happen. So
it really is. It's kind of like you woke up

(02:15):
this morning and what the hell's going on? Because the
world had changed overnight. And look, there are people growing wine,
people growing beef, people growing wheat, people digging up cole
and I and or they just don't know what's going
to happen tomorrow.

Speaker 2 (02:29):
No, none of us do, do we. The most sleep
we get is when he's sleeping. I have found now Australia,
this is interesting. So Beijing has come to canber and said, look,
let's jointly oppose Trump, and elbow is actually resisting this.

Speaker 3 (02:46):
Look an intriguing cheeky you might say. The Chinese ambassador
to Australia very well spoken, very well regarded ofly. He
wrote an op ed piece for the nine newspapers that
is the Fen Review, the City Morning Herald and the
Age newspaper in Melbourne. And as you say, he said,
there was an invitation from Beijing to Australia to quote,

(03:10):
join hands with Beijing to resist Donald Trump. We should
be in solidarity with Beijing. And as you say, the
Prime Minister here, Anthony Albanesi, he brushed that off. We'll
speak for ourselves, he said. The trade relationship, he was
very quick to point out though, is vitally important for Australia.
It does represent and I haven't heard this stet before before.

(03:32):
Albanzi mentioned this today Ryan, the trade with China, this
is is very important. It represents one and four jobs
in Australia. That's a huge number. That's a big, big number.
One and four jobs are directly linked to Australia's trade
with China, by far our biggest trading partner. And so
what happens to China, not just the US, what happens

(03:54):
to China materially affects Australia.

Speaker 2 (03:56):
Absolutely. We will the same tightrope you guys to trying
to balance those two interests. Murray, thank you for that.
Great to have you on as always, Murray Old's our
Australia correspondent.

Speaker 1 (04:05):
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