🗞️ Turning a blind eye

Good morning. Avoiding small talk can come in all shapes and sizes, but pretending to be blind would be at the extreme end.

Carmen Jimenez pretended to be blind for 28 years after telling her family she had lost her sight in an accident.

Talking loudly when your headphones are in is probably good enough to get through the day without weekend recaps.

All the headlines and more below...

AUSTRALIANS CUTTING WINE AND ENTREES WITHIN WEEKS OF PETROL HITTING $2.50

Consumer confidence just recorded its sharpest monthly fall since Covid began. Restaurant owners say the shift happened in weeks once petrol spiked in March following US and Israel strikes on Iran. Diners are ordering chicken schnitzel instead of rib-eye, skipping entrees and sticking to tap water.

NAB found consumers are now reducing or cutting coffee and snacks, categories that typically hold up even during mild slowdowns. Senior financial counsellors say people are turning to buy-now-pay-later and gift cards just to buy petrol and groceries. Many were already living paycheque to paycheque before the fuel spike and interest rate rise in March pushed them over.

Day-trip destinations like vineyards and coastal towns are being hit hardest. People aren't just getting in the car and driving until they get hungry anymore. The distance between "I can afford this" and "I won't risk it" is about one tank of fuel.

NATIONAL FUEL PRICES (Day-on-Day Change)

AUSTRALIAN NEWS

• 50% of Australians want their government to distance itself from US President Donald Trump as skepticism about the US alliance grows. LINK

• Duty-free retailers and luxury beauty groups are facing weaker sales as the Middle East conflict sharply reduces regional air traffic and airport shopping. LINK

• Australian diners are rapidly cutting back by choosing cheaper menu options, skipping extras and trading wine for tap water as surging fuel prices erode consumer confidence. LINK

• Australian property owners are facing slowing house price growth of about 2.5% this year as the RBA hikes interest rates and looming budget tax reforms threaten capital gains and negative gearing. LINK

• Australian renters are facing a renewed squeeze as nationwide rents have risen more than 5% over the past year, led by Sydney’s 7.4% annual increase. LINK

• The IMF has cut its global growth outlook due to Middle East war-driven energy price spikes as it warns of a drift toward a worse scenario with possible oil prices averaging $110 in 2026 and $125 in 2027. LINK

• The IMF has warned that the US-Israel war on Iran and resulting energy crisis will keep Australian inflation above the RBA’s target until 2027 and sharply slow GDP growth. LINK

RENTS UP 5% NATIONALLY AFTER FORECASTERS SAID THEY'D FLATTEN

National rents jumped 5.3% in the past year, more than double the inflation rate forecasters expected them to track. Sydney hit 7.4%, nearly triple the current inflation rate.

Last year Australia built 172,000 dwellings. Population grew by 480,000 including temporary residents. There are now 2.9M temporary visa holders in the country, up 60,000 in 6 months. Net migration dropped 15% year-on-year but still runs above pre-COVID levels.

Investors face higher mortgage rates and likely capital gains tax changes in May. Rental yields in major cities sit near 2%. The math says they'll pass costs to tenants, not absorb them.

Forecasters pulled 2026 house price growth from 5% down to 2.5% this week.

COMPANY NEWS

• Comcare has launched an investigation into 2 suicides of NAB workers that occurred weeks apart, as Victorian Police prepare a coroner's report on one death. LINK

• Australia’s biggest banks, insurers and super funds are holding high level talks with financial regulators over Anthropic’s powerful Mythos model as concerns grow about its potential to undermine cybersecurity and financial stability. LINK

• Woolworths has told struggling food and grocery suppliers facing surging fuel and raw material costs to find efficiencies instead of price rises, citing obligations under the federal food and grocery code. LINK

• ACMA fined Latitude Finance Australia $3.96M after finding 2.7M spam law breaches involving 2.3M marketing messages lacking accurate contact or effective unsubscribe information. LINK

• Virgin Australia has forecast a $30M to $40M rise in fuel costs in H2 FY26 and will trim domestic capacity by 1% as it relies on extensive hedging to limit further impact. LINK

• Uber has shifted from its asset-light gig economy model by committing over US$10B to buy thousands of autonomous vehicles, invest US$2.5B in developers and launch robotaxis in at least 28 cities by 2028. LINK

• Aptoide has sued Google in the US, alleging the tech giant unlawfully monopolises Android app distribution and billing, hindering rival app stores from competing on pricing and policies. LINK

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CHART OF THE DAY

Food accounts for a large slice of imports

ONE MORE SCROLL

Editor’s Pick: 6 simple tricks for people who overthink everything.

Draft Pick: After backlash over World Cup ticket prices, FIFA provides more expensive options.

Odd Pick: Officer having anxiety attack took ambulance sent for man dying from police shooting.

BRAINTEASER

Which 5 letter word can go BEFORE "power", "star" and "vision" to make 3 other words?

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