Australia is a chosen destination for AI infrastructure spending, with ~$200B of $850B global tech capex coming to Australia. The consumer is under pressure from rate hikes and cost of living. The property market is at a crossroads. Deal flow pipeline is strong but moving slowly due to geopolitical and macro uncertainty. AI adoption is still early stage.

Markets traded in a huge range overnight due to rotation out of tech into cyclical sectors. The US economy is strong, driving rotation. Higher oil prices from Iran conflict and strong home sales boosted cyclicals. A liquidity vacuum ahead of SpaceX IPO is exacerbating volatility. Asia sees high volatility in Korea and Japan.

US self-defense strikes on Iran after helicopter downing threaten fragile peace talks. Oil prices rise. Mediation efforts continue but Iran's response is uncertain. The US wants a deal before midterms but Iran feels it has leverage.

The world is in a normal state of uncertainty with multiple big powers. Australia should take Trump at face value and manage the relationship without day-to-day commentary. China's model is not a viable alternative to Western democracy. It's in Australia's interest for the US to emerge as the strategic winner in the Middle East. Taiwan conflict is unlikely in the near term.