RBA pivot sparks sharemarket rally
The Reserve Bank bucked global trends to slow the pace of rate rises in a move that surprised markets and sparked the biggest sharemarket rally in two years.
Commission slams Labor’s free TAFE, Coalition’s Job Ready Graduates
Education and skills are fundamental to productivity growth, but we need more bang for our $100 billion annual spend, says the Productivity Commission.
Industry super lashes plan to drop best interests’ duty
Industry Super Australia broke ranks with other major super lobby groups to blast the proposed Levy review change.
Telehealth biz InstantScripts hunts for new owner; $200m sale tipped
The doctor’s recommended a new owner for InstantScripts, and the four-year-old telehealth business has brought in Lazard Australia to find one.
Russian oil price cap would save emerging markets billions, US says
Washington is counting more on carrots than on sticks to convince governments and companies around the world to embrace the G7 plan.
- Opinion
- Interest rates
Don’t mistake this RBA move for weakness
The 0.25 of a percentage point rise in interest rates might seem timid, but the RBA is articulating that will rates need to stay higher for longer and that the inflation fight won’t be over soon, Richard Holden.
Bond traders downgrade cash rate outlook after RBA shock
Bond yields dived after the RBA defied markets with a smaller than expected cash rate increase, signalling the end of a sharp and short tightening cycle is near.
Breaking news on companies, politics and economics, in your inbox as it happens.
Companies
Banks move swiftly as RBA slows pace of rate rises
Investors are poised to profit from higher rates, with upgrades across bank earnings as net interest margins expand. But analysts warn conditions will change in 2024.
UK investors liquidate another $400m of Aussie mortgage bonds
The bulk of the bonds on sale are highly rated class-A notes that have short pay-back periods, and carry no interest rate risk.
Queensland wind to power Telstra under Korea Zinc deal
A $2 billion wind farm being built near Warwick in Queensland will supply Telstra with renewable power, as well as a zinc refinery and the state’s CleanCo.
Link in trading pause as Dye & Durham returns with part offer
A $2.5 billion buyout for all of Link fell over, but a new proposal aims to bypass liabilities from a Woodford fund collapse in the UK.
MACA investors on the fence after Thiess secures control
MACA shareholders who have not yet accepted a $367 million takeover bid from mining services group Thiess are weighing up whether to remain minority investors in the Perth-based contractor.
Traditional owners say ERA chairman must go now
The Mirarr people, determined to protect Jabiluka from uranium mining, have backed Rio Tinto’s calls for Energy Resources Australia chairman Peter Mansell to resign.
EY likely to score more clients after demerger
Clients would be more likely to buy EY’s audit and consulting services if they were offered by separate outfits, a survey found.
Companies in the News
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Markets
Bond traders downgrade cash rate outlook after RBA shock
Bond yields dived after the RBA defied markets with a smaller than expected cash rate increase, signalling the end of a sharp and short tightening cycle is near.
Credit Suisse a ‘buy for the brave’ as shares hit record low: Citi
With its share price at rock bottom, analysts say the stock is only a buy for investors with an iron stomach ahead of its strategic shift.
ASX rockets 3.8pc as RBA pivot soothes recession anxiety
The local sharemarket posted its best session in more than two years as the RBA’s shock move triggered a sharp fall in bond yields and the Aussie dollar.
RBA ups cash rate 0.25pc, shares soar 3.75pc, terminal rate calls cut
NAB lifts home loan rates, CBA tips 2.85 per cent terminal rate, market consensus falls to 3.46pc in May 2023. RBA expects to increase in period ahead, inflation to rise. Follow here.
- Opinion
- Chanticleer
Central banks trapped in their own Ponzi scheme
Macquarie’s Viktor Shvets says global markets are addicted to low rates and high liquidity, giving governors no choice but to pivot despite high inflation.
Opinion
Labor has to help the RBA’s inflation fight
The Reserve Bank has dialled back the hawkishness but can’t fall too far behind the US Fed. And the Albanese government has to help.
Editorial
Media Watch’s false impression on Queensland land tax coverage
Viewers of the ABC’s Media Watch got a false impression of the Australian Financial Review’s coverage of the Queensland government’s now-abandoned land tax changes.
Editorial
Don’t mistake this RBA move for weakness
The 0.25 of a percentage point rise in interest rates might seem timid, but the RBA is articulating that rates will need to stay higher for longer and that the inflation fight won’t be over soon.
Economics professor
Chalmers needs to tread carefully on Reserve Bank changes
Packing more professional economists and monetary policy experts onto the Reserve Bank board will only lead to more confusion and mixed messages.
Columnist
This is what happens when conspiracy theorists run countries
Conspiracy theorists have moved from the streets to the suites, and the most dangerous of them all is Vladimir Putin, who is threatening the world with nuclear war.
Columnist
Why Truss will struggle to repair budget damage
It’s never good when economists at major banks declare that a country’s ruling party has become a doomsday cult.
Contributor
Politics
Confidence slumps but RBA shift offers glimmer of hope
Consumer confidence slumped last week as turbulence overseas and rising petrol prices at home depressed spirits. A change in the pace of rate rises could change that.
Higgins felt parliament was a ‘safe place’, trial told
Bruce Lehrmann has been accused of lying about why he was at Parliament House before he allegedly raped his colleague Brittany Higgins in 2019.
Job access for workers with a disability gets $20m boost
Social Services Minister Amanda Rishworth says Labor will spend $20 million to subsidise efforts of employers taking on workers with a disability.
Privatised jobless support making people less employable: MP
Lazy stereotypes and outdated political rhetoric are hurting employment assistance programs in Australia, the outspoken chairman of a parliamentary review has said.
Clean energy pledges hinge on delivering 40 gigawatts of power
There are growing doubts about whether the scores of renewable energy projects in the eastern states can be delivered on time and on budget.
SPONSORED
World
Credit Suisse’s turnaround just got a lot tougher
To underpin sustainable profit, Credit Suisse is aiming to streamline the investment bank and expand its wealth management business, which soaks up less capital.
Ukraine forces break through Russian defences in south
Making their biggest breakthrough in the south since the war began, Ukrainian forces recaptured several villages in an advance along the strategic Dnipro River.
Warnings as North Korea missile flies over Japan
Japan has issued a rare warning for some residents to seek shelter after North Korea launched a ballistic missile over the country on Tuesday.
Kim Kardashian to pay $1.9m to settle SEC crypto charges
The American celebrity promoted the crypto product as a good investment on her Instagram page in June 2021.
Ministers slept as Truss woke up to the reality of tax cut
It was about 12.45am that Whitehall aides spotted rumours on Twitter that an about-turn was in the offing, and they desperately tried to call anyone who might still be awake to find out if it was true.
Property
Rate move to prompt more buyers and sellers to act
While separate data point towards a stabilising housing market, the central bank’s decision gives confidence an end to rising rates is in sight.
Dorms fill, room rates rise as international students return
Many operators are on track to reach normalised occupancy even before a full recovery in enrolment levels.
Putting greens and yoga: Deagues turn to co-working to lock in tenants
With the opening of a new ‘club’ facility in South Melbourne, the Deague family has grown its co-working footprint to 19,000 sq m.
Plans lodged for $250m hotel and office project on Toorak Road
Oreana Group proposes building a 116-room hotel, over 9000 sq m of office space as well as shops on the large site next to South Yarra train station.
Singaporeans swoop on Shepparton mall
The deal punctuates a slowdown in the rate at which malls have been changing hands over recent months, after last year’s frenetic pace drove retail real estate deals to a record.
Wealth
Rate rises a blessing for bargain hunting Sydneysider
Falling property prices and tougher lending conditions are creating opportunities for cashed-up borrowers.
- Opinion
- Sharemarket
Investing for a recession? Tread carefully
If your instinct is to sell everything and move to cash, read this first.
- Opinion
- Office
How office space could be put to better use
The unprecedented growth of online spending and consumer demand for shorter delivery times offer canny investors a redevelopment opportunity.
Technology
‘You can’t just flick a switch’: small business fears new data laws
The government has awoken to the perils of businesses possessing so much data, but COSBOA warns small operators can’t afford the same protection as big companies.
- Exclusive
- Streaming
YouTube in secret talks to own TV home screens
Australian streamers have been approached about signing up to “YouTube A La Carte”, which will bring various services together through the Google-owned platform.
The Aussie tech company helping make EV planes real
Investible’s $100 million Climate Tech Fund is backing a Melbourne company that makes smaller, lighter electric motors, among eight early investments.
Work & Careers
Andrew Thorburn cancelled as Essendon CEO after 24 hours
Former NAB CEO Andrew Thorburn has quit as Essendon chief just a day after being appointed following a backlash over the beliefs of the church he also chairs.
Commission slams Labor’s free TAFE, Coalition’s Job Ready Graduates
Education and skills are fundamental to productivity growth, but we need more bang for our $100 billion annual spend, says the Productivity Commission.
Life & Luxury
The best dress to wear to the races isn’t a dress at all
Off to watch the horses? We have ideas that are stylish, flattering and a little more La Nina-proof.
Skoda delivers an updated, sportier SUV
Starting at $68,390, the seven-seat Kodiak RS is a niche proposition – but no niche seems too small for the Australian market.
Liquid Death water start-up valued at $1b
Would you pay more for H2O if it was in a “fun and unhealthy”-looking can and backed by hit-making house music group Swedish House Mafia? It seems many would.
This exec likes to race against the clock for self-improvement
Adobe Asia-Pacific president Simon Tate is a super sprinter – in a Porsche GT3 race car. He answers our Time Out Q&A.
Guitar music is dead? Nobody told The Darkness
Twenty years after their debut album sold 4 million copies, the British glam rockers are still gleefully uncool, and making a stand for real musicianship.
