NAB Morning Call

Friday 16th May 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABSofter retail sales and slower growth in produce prices has upped expectations for the speed of Fed cuts this year, pushing bond yields lower today. It’s been a curious session, with NAB’s Ray Attrill saying equities, bonds and the dollar seem to be acting independent of each other. Oil is also forging its own path, driven down by expectations that President Trump will forge a deal with Iran which could see them adding to the global supply pool sometime soon. They also discuss yesterday’s Australian employment numbers and why we might have been bit optimistic to expect a 50bp cut by the RBA next week. But never say never.

Thursday 15th May 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABEquity markets were a little more restrained today, perhaps because there were no big announcements to drive the enthusiasm. Tech is the exception, that continues to move up. And deals with Japan and South Kores are close, apparently.  NAB’s Tapas Strickland says the lowering of tariffs on China has already had an impact, with container ship bookings rising sharply this week. Data out later will show us the impact the cuts had on retail sales and producer pries in the US in April. The US President is still in the Middle East, and will perhaps move to Turkey later today if Putin indicates he will show up for negotiations with Zelensky. But don’t count on it. There’s also an increasing focus on the Beautiful Bill - what form will it eventually take. The Wall Street Journal has described it as a Turkish Bazaar of ideas and there are concerns that it could add to debt without assisting with growth.

Wednesday 14th May 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThere’s no denying, President Trump and his team are out to do deals and, right now, markets seem to be loving in. NAB’s Skye Masters talks through today’s market action, which has seen a significant rise in tech stocks, helped by news that restraints on the sale of NVIDIA stocks could be lifted for the UAE. The other big announcement during the President’s visit to the Middle East is a $142bndefence deal with Saudi Arabia. With all this positive sentiment, it seems investors that were underweight on US equities are quickly buying  back in to the market. The S&P is now higher than it was at the start of the year. And, as Phil discusses with Skye, the data we’ve seen over the last 24 hours – US CPI, the NFIB small business survey, NAB’s Australian Business Survey and Westpac’s consumer confidence, all came in a little better than expected. Today, aide from the next bit of Trump news, |ussie wages data is released. It’s unlikely it’ll do anything to stop a cut by the RBA next week.

Tuesday 13th May 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABMarkets were taken aback by the size and immediacy of tariff cuts announced Monday between China and the US. Although we did highlight it as a possibility in yesterday’s podcast. NAB’s Gavin Friend says it wasn’t just the size of the tariff cuts, down to 30% on China and 10% on the US, but also the goodwill displayed after the weekend talks. Equities have risen sharply, the dollar is stronger, and markets are pricing in more rate cuts.  The news does make upcoming data a little less relevant. We get the US inflation print today - if its higher the US administration can say the lower tariffs should fix that. Just as the UK government can respond to higher unemployment -  if it happens today -by saying they have just proposed sweeping changes to immigration rules. That’s politics. And there’s a lot of it lately.GOT A QUESTION FOR NAB’S CEO? Phil will be talking to Andrew Irvine on the Weekend Edition, a week on Friday. Ask what you like about finance and the economy, globally or locally. Orif you  want your voice heard, ask your question out loud and send in a sound file to be played on the podcast. Whichever way you want to do it, email morningcall@nab.com.au - don’t forget to include your name and where you are from.

Monday 12th May 2025NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABUS Treasury Secretary Bessent said there had been ‘substantial progress’ in the negotiations with China over the weekend. Maybe the US is feeling the pressure, with stores warning of supply shortages. China, meanwhile, according to trade data on Friday, is exporting more, they’ve just switched the destination away from the US. Phil asks NAB’s Rodrigo Catril if China exports have a deflationary impact elsewhere (not the US), will we see more of a divergence in the approach taken by central banks? And could this be a big week for deals? With China? With other nations? And potentially positive talks over Ukraine with Putin and Zelensky supposedly set to meet face to face.  

Friday 9th May 2025Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.The commercial real estate (CRE) market has struggled post-COVID, with working from home and online shopping both taking a chunk out of demand for properties. But the tide is starting to turn, with investment picking up and a stronger focus on building greener premises or adapting older buildings to meet new green regulations. It’s a Herculean task, with CRE contributing 18 percent of direct carbon emissions in Australia.Nonetheless, we are winning the battle, according to Natasha Mulcahy, the Pacific region director, ESG at the global commercial real estate consulting and investment firm CBRE. And NAB is doing its part. Paul Lennard is NAB’s Executive, Business Lending Products – his team includes a sustainable finance unit which has built a growing portfolio of around $2bn in green finance over three years, including the CRE sector. Natasha and Paul join Phil this week to talk about the growth in sustainable CRE, who is driving that change and the regulations that make it impossible to ignore.