Trump’s trade war will have ‘profound’ effects, RBA deputy governor warns
Patrick Commins
The Reserve Bank deputy governor, Andrew Hauser, has warned that Donald Trump’s trade war will have a “profound” impact on the global economy.
Speaking at the Australian Conference of Economists this morning, Hauser said it was “puzzling” that investors seemed unperturbed by the tectonic shifts in the global economic order.
Sharemarkets are higher now than they were before Trump announced his extraordinary tariff rates in early April’s “liberation day”.
“How worried are we about it (Trump’s trade policies)? We are very, very focused on it, the level of uncertainty is clearly elevated. The first round effects of these changes in US tariffs are probably relatively minor, but the effects on a broader global economy are profound,” he said.
Hauser, who joined the RBA from the Bank of England, used the experience of Brexit to explain how it can take years for the full impact of major shocks like Trump’s tariffs to become clear.
The day after Brexit happened, everyone thought the world would end, and it didn’t. But 10 years on, you’re seeing the profound effects of some of those changes for sustainable growth rates and for fundamental things in the economy.
Hauser’s comments came a day after the RBA board defied expectations to hold rates, but the official offered no fresh insights into what the central bank was thinking on that score.
RBA deputy governor Andrew Hauser. Photograph: Lukas Coch/AAPShare
Updated at 01.47 BST
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Sydney’s Downing Centre court complex closed until ‘late 2025’ after water damage
Sydney’s Downing Centre will be closed until “at least late 2025” after a burst water main flooded the centre and damaged the substation that powered it.
Last month a Sydney Water main burst outside the local and district court on Castlereagh St, flooding the centre and damaging an AusGrid substation, the Department of Communities and Justice said in a statement.
An electrical transformer and switchboard – two critical pieces of electrical and mechanical infrastructure – have to be replaced, electrical engineers identified in an inspection of the building. It is anticipated the process will extend into late 2025.
The building is still disconnected from the substation, with no confirmation on when power will be restored. The statement continues:
At this stage, the Downing Centre is likely to remain closed until at least late 2025 to ensure the building is safe and fully functional.
This closure period will also allow for upgrades to the Downing Centre to be brought forward, including improvements to public spaces and courtrooms.
Matters listed in the Downing Centre are relocated to alternative locations including John Maddison tower, Central court, King Street and Darlinghurst courts.
Work is also under way to secure more permanent locations for jury assembly, and heads of jurisdiction continue to work closely with the Department of Communities and Justice to facilitate access to justice.
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Updated at 03.01 BST
Complaints rise again as telcos frustrate customers
Australians are becoming more frustrated with their phone providers, as the number of complaints escalated to the industry ombudsman when telcos can’t solve them continues to rise.
Analysis from the communications watchdog released today showed the rate of customer complaints being referred to the Telecommunications Industry Ombudsman (TIO) has risen for the third consecutive quarter.
The report from the Australian Communications and Media Authority (Acma) says 7.1% of customer complaints were referred to the ombudsman, up from 6.9% in the previous quarter. Referring a complaint to the TIO means the issue was not able to be resolved between customers and their provider.
Two of the nation’s biggest telcos fared particularly poorly in the analysis, with Optus (31st) and TPG (34th) occupying spots near the bottom of the 36 ranked companies for rate of referred complaints.
Telstra – Australia’s biggest provider – was 18th, with 31 complaints per 10,000 services.
The report highlights a near-sevenfold increase in the rate of complaints about the worst-performing company being escalated to the industry ombudsman. Circles.Life racked up 152 complaints per 10,000 services – the most escalations out of the nation’s 36 largest telcos in the March 2025 quarter.
But its former customers may receive a reprieve – Circles.Life shut up shop earlier this year. Its customer accounts were acquired by larger provider Amaysim, which finished above the nation’s big-three telcos Telstra, Optus and TPG in Acma’s complaints-handling performance table.
That said, Amaysim was acquired by Optus in 2021 and uses the larger telco’s network, as did Circles.Life.
– Australian Associated Press
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Updated at 02.47 BST
Travellers no longer required to take off shoes for security at US airports
For the first time in almost 20 years, travellers are no longer required to take off their shoes during security screenings at US airports, Kristi Noem, the Department of Homeland Security secretary, announced on Tuesday.
The Transportation Security Administration (TSA) has abandoned the additional security step that has for years bedevilled anyone passing through US airports, according to media reports.
The move puts an end to a security screening mandate put in place almost two decades ago, several years after “shoe bomber” Richard Reid’s failed attempt to take down a flight from Paris to Miami in late 2001.
“We expect this change will drastically decrease passenger wait times at our TSA checkpoints, leading to a more pleasant and efficient passenger experience,” Noem said in a statement.
A traveller puts on his shoes after passing through security at the Los Angeles international airport in 2014. Photograph: Kevork Djansezian/ReutersShare
Updated at 02.41 BST
Graham Readfearn
Australians could cut power bills by 90% if they made their homes more energy efficient, report finds
Luke Menzel, the chief executive officer of the Energy Efficiency Council, and other energy experts say political noise has often overshadowed the role of energy efficiency in Australian homes and how to cut rising household bills.
The latest of several reports to make the case for boosting energy efficiency is from the Institute for Energy Economics and Financial Analysis (IEEFA).
IEEFA found Australian households could cut their power bills by more than 90% by implementing a range of energy efficiency measures.
Released on Wednesday, the report calculated potential savings of between 82% and 94% if households installed solar and a home battery and used efficient appliances – such as heat pumps, air-conditioners and electric induction cooktops.
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Speed limits reduced on local streets in Sydney’s inner west
The speed limit has been reduced from 50km/h to 40km/h on local streets in Sydney’s inner west this week.
The change applies to local streets in Enmore, Tempe, Sydenham, Marrickville and parts of St Peters and Petersham.
Inner West mayor Darcy Byrne said:
This reduction in speed limits on local streets will reduce crashes and fatalities while having almost zero impact on travel times.
Local people know that the vast majority of travel time delays is caused by sitting idle in traffic, not the speed that you can drive at.
Further still, in most of our local streets the narrowness means that it is not possible to travel safely at 50km per hour.
Victoria Road, Enmore Road, Bedwin Road and Edgeware Road will be reduced from 60km/h to 50km/h.
Transport for NSW is funding the change.
Cars travel along Enmore Road. Photograph: Neve Brissenden/AAPShare
Updated at 02.08 BST
Regional NSW art gallery eyeing cuts amid funding shortfall
At one of Australia’s foremost regional galleries, volunteers are helping carefully unpack artworks for an upcoming exhibition.
Armidale’s New England Regional Art Museum (known as NERAM) stages more than 30 shows each year, with staff and volunteers installing Lost in Palm Springs, which celebrates the desert landscape and architecture of California.
But having missed out on New South Wales government funding, NERAM may be forced to cut back on shows like this.
The gallery has relied on about $80,000 in annual state funding over the last decade, but it’s one of more than a dozen regional galleries in NSW that has recently missed out in the government’s four year funding program.
While many of these art institutions are run by local councils, NERAM is independent, without local government money to fall back on.
Director Rachael Parsons is working out what to do if a last-ditch two-year funding round is unsuccessful. She said:
If we are unable to find a last minute donor or brilliant idea to bring in more revenue, we are looking at what we cut.
Budget cuts would likely mean fewer exhibitions and reduced public programs at the gallery, which is a major tourist attraction and a hub for the town’s cultural life, Parsons said.
– via Australian Associated Press
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Updated at 01.59 BST
Trump’s trade war will have ‘profound’ effects, RBA deputy governor warns
Patrick Commins
The Reserve Bank deputy governor, Andrew Hauser, has warned that Donald Trump’s trade war will have a “profound” impact on the global economy.
Speaking at the Australian Conference of Economists this morning, Hauser said it was “puzzling” that investors seemed unperturbed by the tectonic shifts in the global economic order.
Sharemarkets are higher now than they were before Trump announced his extraordinary tariff rates in early April’s “liberation day”.
“How worried are we about it (Trump’s trade policies)? We are very, very focused on it, the level of uncertainty is clearly elevated. The first round effects of these changes in US tariffs are probably relatively minor, but the effects on a broader global economy are profound,” he said.
Hauser, who joined the RBA from the Bank of England, used the experience of Brexit to explain how it can take years for the full impact of major shocks like Trump’s tariffs to become clear.
The day after Brexit happened, everyone thought the world would end, and it didn’t. But 10 years on, you’re seeing the profound effects of some of those changes for sustainable growth rates and for fundamental things in the economy.
Hauser’s comments came a day after the RBA board defied expectations to hold rates, but the official offered no fresh insights into what the central bank was thinking on that score.
RBA deputy governor Andrew Hauser. Photograph: Lukas Coch/AAPShare
Updated at 01.47 BST
In pictures – traffic chaos after collision on Sydney Harbour Bridge
More photos are in of the traffic around the Sydney Harbour Bridge. New South Wales police warned traffic would be affected in both directions after a four-vehicle crash on the bridge during peak hour this morning.
Photograph: ABC News Photograph: ABC News Photograph: ABC NewsShare
Updated at 01.18 BST
Qantas confirms 5.7 million customers affected by cyber-attack
Josh Taylor
Qantas has begun informing customers what specific data of theirs was taken in the cyber-attack last week, with 1.7 million of the 5.7 million customers having more data than previously reported including meal preferences, gender, and addresses for delivering misplaced luggage.
In an update on Wednesday, the airline said it had progressed a forensic analysis of the customer data in the compromised system, and as of yet there had been no evidence that the data had been released publicly.
The number of customers affected has narrowed down to 5.7 million after removing duplicate records.
Four million of these customer records are limited to name, email address and Qantas frequent flyer number, with the majority including their tier, and a minority including points balance and status credits.
For the remaining 1.7 million their records include some combination of the above, plus:
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Address – 1.3 million. This is a combination of residential addresses and business addresses including hotels for misplaced baggage delivery.
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Date of birth – 1.1 million
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Phone number (mobile, landline and/or business) – 900,000
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Gender – 400,000. This is separate to other gender identifiers like name and salutation.
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Meal preferences – 10,000
Qantas chief executive Vanessa Hudson said:
Our absolute focus since the incident has been to understand what data has been compromised for each of the 5.7 million impacted customers and to share this with them as soon as possible.
From today we are reaching out to customers to notify them of the specific personal data fields that were held in the compromised system and offer advice on how they can access the necessary support services.
Qantas CEO Vanessa Hudson. Photograph: Bianca de Marchi/AAPShare
Updated at 01.20 BST
Heavy traffic after crash on Sydney Harbour Bridge
Traffic is affected in both directions after a four-vehicle crash on Sydney Harbour Bridge this morning, with no reports of serious injuries.
Two vehicles collided head on before crashing into two other cars, New South Wales police were told.
The two cars that crashed head-on on the Sydney Harbour Bridge this morning. Photograph: ABC News
Two drivers were treated by NSW Ambulance paramedics for minor injuries, and have been taken to hospital in a stable condition.
The crash has caused traffic delays on the bridge. Photograph: ABC NewsAn aerial view of the bridge this morning. Photograph: ABC NewsShare
Updated at 01.03 BST
Alleged homophobic and neo-Nazi graffiti sprayed on side of Melbourne gay club
Josh Taylor
Victoria police are investigating homophobic and neo-Nazi graffiti that was sprayed on the side of a well-known gay pub in Abbotsford in Melbourne’s inner north on the weekend.
The incident happened in the early hours of 6 June at the Laird on Gipps St in Abbotsford. The graffiti included a gay slur and a neo-nazi symbol, it is understood.
A spokesperson for Victoria police said it was under investigation:
Police are investigating after an offensive slogan was graffitied on a licensed venue in Abbotsford on 6 July.
Officers were called to the Gipps Street venue after the graffiti was located.
The investigation remains ongoing.
The owners of the Laird posted on Facebook on Sunday they had covered up the graffiti with pride flags ahead of an event at the pub on Sunday.
We had some vandalism overnight that you don’t need to see when coming to relax and hang with friends.
Leave it be, City of Yarra graffiti removal are on the case, and they were caught on our security cameras. See you soon.
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Updated at 00.50 BST
Four-vehicle crash on Sydney Harbour Bridge during peak hour
Emergency services are currently on scene after a four-vehicle crash on the Sydney Harbour Bridge this morning.
Two vehicles collided head-on before crashing into two other cars, New South Wales police were told. They responded to reports of the crash just after 8am.
Two drivers were treated by NSW Ambulance paramedics for minor injuries, and have been taken to hospital in a stable condition, NSW police said.
Police warn traffic is affected in both directions.
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Updated at 00.53 BST
Understaffing in childcare is affecting children’s safety, survey says
Understaffing in childcare is impacting children’s safety, early educators have said in a survey.
The United Workers Union’s early childhood education and care quality and safety survey of more than 2,000 early childhood educators “exposed systemic issues that made it impossible to deliver the required quality of care,” UWU said in a statement.
The “vast majority of educators” said “understaffing is putting children at risk”, the statement said.
The survey was conducted before a Melbourne childcare worker was charged with allegedly sexually abusing infants and children in his care.
In the survey, 77% of educators said they were operating below minimum staffing requirements at least weekly. And 83% strongly agreed that a “common staffing loophole”, which UWU says allows centres to move educators between rooms and count educators not on the floor towards minimum staffing requirements, “compromises the safety and wellbeing of children”.
Carolyn Smith, the UWU’s early education director, said:
The hard truth is that more than three quarters of educators say they are regularly staffed below minimum requirements in their rooms.
We need to support educators to do their best work, and our survey results show that the system is failing them and, in turn, the children in their care.
While examining the tragic events revealed in Melbourne last week, we also need to understand the alarm that is being sounded by educators.
One educator from Victoria said: “I can’t even guarantee the safety of the children and myself. I feel sad, unsafe and stressful every day.”
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Updated at 00.32 BST
Man arrested at Brisbane airport over alleged spiritual ‘blessings’ scam
Another person accused of being involved in a syndicate leveraging cultural superstitions to scoop up cash and jewellery has been charged.
A 62-year-old man faces fraud and criminal group offences related to the alleged scam, which police say convinced women to hand over money and valuables to be “blessed”.
They were told not to open bags meant to contain their valuables, which the alleged fraudsters had switched out, according to police.
New South Wales police allege it’s the work of a “fly-in, fly-out” criminal syndicate.
The alleged scammers typically come to Australia from China for short stints to carry out the fraud, convincing older women that their money and belongings needed to be “blessed” to avoid bad luck, police claim.
The man was arrested on Friday at Brisbane airport and extradited to Sydney on Tuesday. This follows the arrest of a 63-year-old woman at Sydney airport on Thursday night.
Detective superintendent Guy Magee said the alleged scammers typically targeted older Asian women, exploiting cultural superstitions.
More than 50 individuals are believed to be connected to the alleged scam across the east coast of Australia, with 11 arrest warrants issued. Police have received reports of more than 80 incidents across Sydney since 2023. They are trying to find a further seven people believed to be involved in the syndicate.
The alleged scams are believed to have netted $3m in cash and valuables.
– via Australian Associated Press
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Updated at 00.24 BST
Patrick Commins
Markets pricing in 90% chance of RBA rate cut in August
Undaunted by the Reserve Bank’s surprise decision to hold rather than cut rates yesterday, financial markets are now pricing in a 90% chance of a move lower at the next meeting on 12 August.
Michele Bullock, the RBA’s governor, made it clear yesterday that the bank’s board believed rates were on the way down, and it was more a question of taking a more cautious approach.
That wrong-footed most economists, and analysts on Wednesday morning were tempering forecasts for an August cut, with Westpac saying “there is a small chance even this is delayed”.
By the time of the next meeting the RBA will have another jobs report and, crucially, inflation figures for the three months to June.
Markets are still expecting two or three more cuts by the end of the year.
For investors, though, there is a much bigger game in town, and that’s Trump’s confounding tariff policy.
That said, talk of copper and pharmaceutical tariffs overnight were received reasonably calmly on Wall Street and the local sharemarket is set to open only a little lower, according to futures trade.
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Updated at 00.03 BST
Andrew Forrest and other business leaders to join Anthony Albanese on China trip
Tom McIlroy
Business leaders have welcomed Anthony Albanese’s confirmation he is headed to China at the weekend, ahead of his second meeting with the country’s president, Xi Jinping.
The PM is headed to Shanghai, Beijing and Chengdu during a week-long trip.
Fortescue boss Andrew Forrest will be part of a business delegation joining the visit.
“The Prime Minister’s visit could not come at a more critical time for Australia’s future,” Forrest says.
To put it bluntly: if Australia and China provide the leadership, then – given the immense industrial platforms that exist in both nations – Australia could build its largest-ever industry in green iron, and China its largest in green steel.
The economic benefits would be profound for both countries: tens of thousands of new jobs, an upskilled workforce, and a solution to one of the world’s biggest climate threats – the global steel industry.
Andrew Forrest will be among the business leaders joining Anthony Albanese on his China trip. Photograph: Lukas Coch/AAPShare
Updated at 23.40 BST
Chalmers says US tariffs ‘bad for Australia’ and ‘bad for the US’
Jim Chalmers says global trade tensions are a “substantial concern” to Australia.
The treasurer, who was speaking on ABC RN a moment ago, says Trump’s tariffs “pose a risk to the progress that the world has been making in our economies after Covid”.
Australian industries and workers, as well as trade in the region, will feel the impact of “escalating trade tensions around the world”, he says.
When we work through the possible consequences of what we’re seeing here, it does pose a risk to global growth. It does pose a risk to the progress that the world has been making in our economies after Covid. We’ve made it really clear on a number of occasions, these tariffs are bad for Australia. They’re bad for the US. They’re bad for the global economy. And so these developments, they are sometimes unpredictable. There’s been an element of volatility and uncertainty injected into the global economy.
Treasurer Jim Chalmers speaking to reporters on Tuesday. Photograph: David Gray/AFP/Getty ImagesShare
Updated at 01.09 BST
Explainer: could Trump force us to pay more for medicines?
Following on from the last post – some background on big pharma taking aim at Australia’s pharmaceutical benefits scheme.
Pharmaceutical companies in the US – where millions can’t afford life-saving drugs – have tried to interfere in Australia’s national, subsidised medicine system.
In Australia, prices for pharmaceutical medicines are capped at $31.60 if listed on the Pharmaceutical Benefits Scheme (PBS). It’s a far cry from the prices Americans pay (Lipitor, a cholesterol-lowering drug that prevents heart attacks and strokes, can cost about A$2,000 in the US, and autoimmune drug Humira more than $11,000, for example). A report by research organisation Rand found that US drug prices were, on average, about 370% higher than in Australia and 278% above the OECD average.
Big pharma in the US wants to sell more drugs in Australia for more, with its demands entangled with the ongoing trade tariff war.
In March, The Pharmaceutical Research and Manufacturers of America (PhRMA) took aim at the PBS in a submission to the US government for not allowing them to charge Australians more and for delays getting their products to market.
Read the full explainer from Tory Sheperd here:
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Updated at 02.52 BST
Chalmers says Trump’s threats of 200% pharmaceutical tariffs are ‘very concerning’
Chalmers says Trump’s threats of a 200% tariff on foreign pharmaceuticals and 50% on copper are “very concerning developments”.
The treasurer says the Australian government is urgently seeking more detail. He is speaking on ABC Radio National:
Our pharmaceuticals industry is much more exposed to the US market, and that’s why we’re seeking, urgently seeking, some more detail on what’s been announced. But I want to make it really clear once again, as we have on a number of occasions before, our pharmaceutical benefits scheme is not something that [we are] willing to trade away.
We see the PBS as a fundamental part of healthcare in Australia … We’ll work through the announcement out of the US overnight. They’re obviously very concerning developments. We are talking about billions of dollars of exports to the US when it comes to pharmaceuticals.
So we’ll work through it in a methodical way, but we make it clear once again, as we have on a number of occasions in recent months, that the PBS is not on the table.
Australia exports about $2bn worth of pharmaceuticals – mainly vaccines and blood products – to the US each year.
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Updated at 22.53 BST