Tag: Interest Rates

Interest Rate Jitters Sink the Giants of Tech

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Market whiplash In the span of a month, the bottom has dropped out of the bull-market rally as investors have come to grips with the prospect of “higher for longer” interest rates worldwide. The sell-off in global stocks and bonds picked up steam on Thursday. And weary market watchers will be looking for more hints on the Fed’s view at next week’s Jackson Hole summit of central bankers and policymakers. Technology stocks have been hit particularly hard. The high-flying FANG+ Index — which comprises the largest tech stocks by market…

Australia news live: Philip Lowe reportedly to be replaced as RBA governor; Wong meets top Chinese diplomat

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<gu-island name="KeyEventsCarousel" deferuntil="visible" props="{"keyEvents":[{"id":"64b067568f08df2847003b8c","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" The Reserve Bank governor Philip Lowe will reportedly be replaced when his seven-year contract concludes in mid-September, according to the ABC. ","elementId":"449618a1-4dac-41f8-89a6-8ee101ef6d71"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" An announcement from treasurer Jim Chalmers is expected to follow today’s cabinet meeting, when the topic of Lowe’s replacement will be discussed. ","elementId":"50b6d4b9-5044-401e-970b-55fcaa10010f"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" Guardian Australia has not yet been able to confirm this. We will bring you updates as they come. ","elementId":"1b8f1abd-e9b3-4fa3-a690-4bf8f7709bdb"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" In the meantime, here is more on what the future may look like for the Australian economy, the RBA and Lowe, from…

Australia news live: Penny Wong ‘deeply disappointed’ by Hong Kong arrest warrants; borrowers await rates decision

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<gu-island name="KeyEventsCarousel" deferuntil="visible" props="{"keyEvents":[{"id":"64a2c5cc8f08d64edbf1ab42","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" The foreign affairs minister, Penny Wong, says the Australian government is “deeply disappointed” by moves from Hong Kong authorities to issue arrest warrants for democracy advocates in exile, including two in Australia. ","elementId":"7005b465-0ea3-446e-850b-f300c416c65e"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" Hong Kong police yesterday said they had issued arrest warrants for eight overseas activists, accusing them of contravening the city’s national security law and offering a reward of HK$1m ($A191,726) per person, as my colleague Amy Hawkins reported here. ","elementId":"c2ba6a1e-cdd1-4fda-8c6c-e347af61fa33"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" This list includes Australian citizen Kevin Yam, a former Hong Kong lawyer and…

Australia news live: Paul Keating’s blast at cabinet over Aukus revealed; Nazi symbols ban

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<gu-island name="KeyEventsCarousel" deferuntil="visible" props="{"keyEvents":[{"id":"64808a8b8f080249d9e1cdd1","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" The Coalition has accused the Albanese government of “delaying the delivery of further assistance to Ukraine despite urgent calls for support”. ","elementId":"60a1a143-562a-49b4-82f0-b41dbf9301e1"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" But the government hit back at the criticism, saying it “continues to engage with the government of Ukraine and our allies and partners to ensure meaningful support continues to be provided to Ukraine in its ongoing battle against Russian aggression”. ","elementId":"9adaa1c8-5a19-49ee-886d-4a4667634fdc"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" The Coalition is today calling on the government to give urgent consideration to a package including Hawkei vehicles, M1 Abrams Tanks, F/A-18 Hornets…

World Bank Projects Weak Global Growth Amid Rising Interest Rates

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The World Bank said on Tuesday that the global economy remained in a “precarious state” and warned of sluggish growth this year and next as rising interest rates slow consumer spending and business investment, and threaten the stability of the financial system. The bank’s tepid forecasts in its latest Global Economic Prospects report highlight the predicament that global policymakers face as they try to corral stubborn inflation by raising interest rates while grappling with the aftermath of the pandemic and continuing supply chain disruptions stemming from the war in Ukraine.…

Australia politics live: ballooning rental prices to fuel inflation, Treasury says

Chin@Strategy

From 31m ago Inflation in rental prices expected to increase: Treasury You may have noticed he mentioned rental increases there. It is not great news for that already tight market, according to Treasury: Rising housing costs remain a source of cost-of-living pressures for many households. Inflation in newly advertised rental prices has been rising sharply for around a year, reaching 10 per cent nationally in January. The national vacancy rate has reached a near-record low of around 1%. Despite the slowdown in population growth during the pandemic, underlying demand for…

Australia news live: Penny Wong heads to China; South Australia braces for largest flood in 50 years

Chin@Strategy

<gu-island name="KeyEventsCarousel" deferuntil="visible" props="{"keyEvents":[{"id":"63a0cbd68f0834f3c057ca06","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" The premier of South Australia, Peter Malinauskas, is speaking to ABC Radio about the flooding his state is seeing. ","elementId":"d6f43983-0fca-4993-a39d-ec6fcc101898"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" Malinauskas says the peak flow is approaching the state border, with the town of Renmark expecting its peak on Boxing Day. The premier says significant preparations have been under way for “an event they’ve known is coming their way for six to eight weeks”. ","elementId":"2028c5e1-e2c1-415f-bed9-5cff02587169"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":" He says the current prediction of 1,000 homes inundated is likely to increase closer to 4,000 homes over the days ahead.…

In Global Slowdown, China Holds Sway Over Countries’ Fates

Chin@Strategy

BEIJING — When Suriname couldn’t make its debt payments, a Chinese state bank seized the money from one of the South American country’s accounts. As Pakistan has struggled to cope with a devastating flood that has inundated a third of the country, its loan repayments to China have been rising fast. When Kenyans and Angolans went to the polls in presidential elections in August, the countries’ Chinese loans, and how to repay them, were a hot-button political issue. Across much of the developing world, China finds itself in an uncomfortable…

Economic Headwinds Mount as Leaders Weigh Costs of Confronting Russia

Chin@Strategy

The interruption of wheat exports from Ukraine and Russia, which together account for 28 percent of global exports, along with supply chain disruptions, a severe drought in India that has caused it to ban shipments of grain and Covid-related lockdowns in China, are also causing food prices to spiral and increasing global hunger, particularly in Africa and the Middle East. The question for both American and European policymakers is how to corral leaping prices without sending their economies into recession. The Federal Reserve has begun raising interest rates to tame…

Federal Reserve Walks a Tightrope Between Inflation and Recession

Chin@Strategy

In an interview, James D. Hamilton, professor of economics at the University of California, San Diego, and a leading expert on the economic effects of oil shocks, said they had “made major contributions to recessions over many decades.” At current oil price and supply levels, the effects of the Russian war “are fairly manageable for the American economy.” But Professor Hamilton pointed out that Russia’s oil, which amounts to about 10 percent of world production, could not be easily replaced if totally cut off — an outcome that he does…