10 things you need to know this morning in Australia

Gisele Bundchen and Tom Brady, who make look like he has it all but you should see what he has to eat for it. (Photo by Andrew H. Walker/Getty Images)

Good morning!

1. Parliament is back and mid-level dysfunction reigns, with Cory Bernardi expected to announce he’s leaving the Liberal Party and setting up his own conservative party which may have backing from Gina Rinehart. Don’t mistake this for the arrival of a popular movement, however. Bernardi may have some fans and Coalition electoral support may be slipping, but what we are seeing is the continuing splintering of the right with Labor’s primary vote support remaining stagnant. What it does represent is the arrival of a big bloody nose for Malcolm Turnbull, who’s now exposed to Labor accusations of presiding over chaos. Coalition MPs are fuming at the treachery.

2. It’s RBA day, with the decision on the official cash rate out at 2.30pm AEDT. No change is expected but the market will be watching carefully for what the governor’s statement has to say about housing market risks. David Scutt has your preview.

3. Even if the RBA does start to tighten policy at some point through rate increases, it’s unlikely to return to the levels we’ve seen in the past. Basically, the old neutral rate of around 5% would have a much greater impact on the economy than in the past, because of the levels of debt that households have built up in the age of cheap money. Here’s more.

4. Speaking of housing, one of the knuckle-whitening features of the current surge in Australian housing prices is the rise of “flipping”. With rental yields falling, investors are turning to cashing out in tightening cycles to maintain their returns. They buy a property and after a year, sell at a profit and then start again. In past cycles, about 95% of landlords bought a house and held it for many years. Now that number has shrunk to less than 90% and continues to slip. Look:

Courtesy Digital Finance Analytics

There’s this and more extraordinary features of the current boom here.

5. To the markets, and everything’s looking a bit soft. ASX futures are down 30 points ahead of the open, after a slide yesterday. US stocks finished slightly in the red overnight, with the Dow off 22 points to 20,050. The Australian dollar is treading water ahead of the RBA decision and iron ore took another tumble overnight.

6. Today in the chaos of Trumpdom:

7. The conventional wisdom is that far-right candidate Marine Le Pen doesn’t have the support to with the French presidency this year. There’s a poll that might make you think again.

8. Eat your way to elite performance. Patriots quarterback Tom Brady led a comeback for the ages to help win his fifth Superbowl yesterday, snatching victory from the hands of the Atlanta Falcons in overtime. Here’s a chart of the turnaround in the Pats’ win likelihood during the game:

Anyway, Allen Campbell, Brady’s chef, has given an interview on everything he does for Brady, including what the already-legendary quarterback does not eat:

No white sugar. No white flour. No MSG. I’ll use raw olive oil, but I never cook with olive oil. I only cook with coconut oil. Fats like canola oil turn into trans fats. … I use Himalayan pink salt as the sodium. I never use iodized salt.

[Tom] doesn’t eat nightshades, because they’re not anti-inflammatory. So no tomatoes, peppers, mushrooms, or eggplants. Tomatoes trickle in every now and then, but just maybe once a month. I’m very cautious about tomatoes. They cause inflammation.

What else? No coffee. No caffeine. No fungus. No dairy.

Leave it with you, Tom.

9. Think Aldi scrimps on staffing levels? Amazon’s supermarket of the future could have three staff — and lots of robots.

10. A glass of wine and a budget review every Sunday night is a ritual for this CEO who was once $50,000 in debt.

BONUS ITEM: Don’t do this:

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