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• President Trump threatened the European Union with 200% tariffs on alcohol, including wine and champagne (while also calling the EU “hostile” and “nasty”). This was in response to the EU imposing tariffs on US whiskey. Which was in response to America’s 25% tariffs on steel and aluminium. Ahh, trade wars. (ABC News)
  
  

• Meanwhile, America’s trade war with China continues to escalate. The latest flashpoint? Hundreds of abattoirs in the US are facing the prospect of being banned from exporting meat to China, as Chinese Customs authorities are not renewing lapsed export licenses. This could effect up to $3 billion worth of beef, pork and poultry coming from the US, and Chinese consumers may turn to Australian producers to make up this shortfall. (ABC News)
  
  

• The US market had its best day for 2025 on Friday. At the close of Thursday, it was down 10.1% since its recent-high, technically falling into a correction. However, the S&P 500 was up more than 2% on Friday as the US market has its best day since November, led by big gains for Nvidia, Tesla and Palantir. (Investopedia)
  
  

• AFL and NRL executives would be nervously reading the comments of DAZN cofounder James Rushton. The new owner of Foxtel has commented that they are seeing downward pressure on sports rights broadcast deals in most markets, but that pressure is yet to appear in Australia. With the NRL and Foxtel set to renegotiate their deal later this year, is Rushton planting a flag early? (Capital Brief)
  
  

• The issue of salmon farming in Tasmania is escalating. About a month after a large amounts of dead salmon washed ashore, protestors were out in force over the weekend calling for an end to salmon farming in Tasmania. Tasmania’s Premier has defended the industry. (ABC News)
  
  

• The 2024 US election was notable for the increased involvement of the crypto industry, that lined up heavily behind Donald Trump despite Democratic efforts to court their vote (and their money). The same looks like it will play out in Australia as both BTC Markets and Swyftx have confirmed they’ve donated to both major parties ahead of the election. (Capital Brief)

What the…?

The European Union and US tit-for-tat trade war continues to escalate, but this hasn’t stopped American authorities asking the Europeans for help.

As the US deals with a bird flu outbreak and an egg shortage, industry associations Swedish Eggs and Danish Eggs have both been contacted by American authorities with a request to export eggs to America. At this stage the associations have said it is unlikely they will send their eggs across the Atlantic.

We would imagine Danish Eggs would be particularly unwilling to help given Trump’s attempts to acquire Greenland from Denmark. (Sweden Herald)

Investing is a lifelong journey

Here’s what you can learn today.

Should the rate cut change your portfolio?

Community Question: What should we be thinking about in response to the current interest rate environment, when it comes to investing in stocks?

We put this question to Matt Ingram, Partner & Financial Adviser at Northhaven Wealth

The first rate cut in over four years finally arrived in Australia, with the cash rate sliced by 0.25% in February. While there was some excitement among households (particularly those with a mortgage), the media didn’t seem quite as excited. A headline I recently saw said “Disaster situation: Top economist’s warning about RBA rate cut”.  

For stock market investors, rate cuts are generally positive. When borrowing becomes cheaper, people spend more, businesses expand, and equities benefit. However, the reality is more nuanced:

• The effect of rate cuts on the broader economy generally takes months to filter through. Consumers don’t suddenly increase their spending, which leaves economic conditions tight and markets cautious for a while longer.

• Different sectors respond differently and often unpredictably. Take the Australian tech sector over the last 12 months, which has outperformed the broader market despite higher rates traditionally being seen as bad for tech companies.

• When rates cuts are expected, as they had been for a long time in Australia, their impact may already be priced into a stock, so the eventuation of the rate cut may not make a considerable difference to the share price.

Over in the United States, the Federal Reserve has already cut rates three times, making economic conditions seem comparatively rosy. But with frequent talks of tariffs and Trump making headlines almost every day, plenty of volatility remains in US markets.

So with all of this nuance and unpredictability, what’s an investor to do?

If you already have a well-diversified portfolio, then do nothing. If you don’t have a well-diversified portfolio, then make that your priority, either by educating yourself or seeing a financial adviser. People’s careers are based around what the economy is going to do and how the market will respond – and it’s not uncommon for them to get it wrong. Keeping your portfolio spread across different sectors and countries is your best chance at achieving a solid return despite the unpredictability of the economy.

Interested in speaking to Matt or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

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