Key posts 6.56am Four illegal boats intercepted off WA coast 6.22am Hard to sustain argument economy is running too hot: treasurer 6.
06am Watch: Kamala Harris introduces VP pick Tim Walz 5.59am Treasurer defends inflation fight as interest rates hold steady 5.24am Labor MPs mourn sudden death of rising political star 5.
06am Kamala Harris names VP pick 5.02am Nobel laureate to head interim Bangladesh government as Penny Wong shares ‘deep concern’ 4.40am This morning’s headlines at a glance Hide key posts Posts area Latest 1 of 2 Oldest Latest posts Latest posts 7.
49am RBA assistant governor says cost-of-living experience varied, US to avoid recession By Millie Muroi RBA assistant economic governor Sarah Hunter says the Australian economy is running “a little bit hot” with some parts of the country struggling more than others, and that the bank is keeping a close eye on the US. Appearing before the Senate select committee on cost of living on Wednesday, Hunter said there were discrepancies between the experiences of different people, sectors and regions across the country. RBA assistant economic governor Sarah Hunter at a hearing of the Senate select committee on cost of living.
Credit: Peter Rae “There are pockets of strength across the economy, not all sectors are experiencing the same thing,” she said, noting the retail sector was struggling while there was stronger employment growth in sectors such as health and education. “Geographically, Victoria and Tasmania are underperforming, while WA and South Australia look like they’re doing a bit better.” Hunter said headline inflation, which the bank expects to drop throughout the year before increasing sharply next year, took into account the volatility of petrol prices, an increase in tobacco excise, and energy rebates from both state and federal governments.
“The return of inflation to target will take a little bit longer than we were previously anticipating,” she said. “But going forward, we think demand and supply will rebalance and get us back to target.” Asked about recent financial market volatility, Hunter said while the RBA was concerned about the US, the market reaction to US data in recent days did not directly influence the RBA’s interest rate decision.
“We are monitoring those conditions very closely,” she said. “Our sense and our view at the moment is that we do expect the US economy to slow. We are very mindful that it could be slightly sharp [but ] .
.. generally speaking, it isn’t flashing red for a recession.
” 7.28am Marles, Wong meet with US counterparts in Washington DC By Josefine Ganko Defence Minister Richard Marles has shared an update from the Australian-US ministerial dialogue, known as AUSMIN, in Annapolis, Maryland. Marles and Foreign Minister Penny Wong attended meetings with their US counterparts, Defence Secretary Lloyd J.
Austin and Secretary of State Anthony Blinken. In a post to X, Marles thanked the secretaries for a “productive exchange”. “We agreed to practical measures to progress our shared priorities for the Alliance,” Marles wrote.
One of the outcomes of the meeting was confirmation that Australia will join the US global entry program, streamlining entry to the United States . 7.20am Aussie market sell-off ‘merely a blip’ The Australian Securities Exchange’s two-day drop over Monday and Friday was brutal, but investors should keep it in perspective, experts say.
The 5.81 per cent plunge took the ASX 200 back to a level last seen in late May, wiping out all of the gains that had taken it to record highs. But it’s hardly anything like the losses seen at the start of the pandemic.
During March 2020 alone, the market on five days had single-day falls exceeding this two-day sell-off, with the worst a 9.7 per cent plunge on March 16. There was also a vicious stretch near the start of the Reserve Bank’s rate-hike cycle in mid-2022, in which the ASX 200 dropped in nine out of the 10 sessions from June 6 through June 20, falling 11.
1 per cent. The market rebounded, only to fall another 552 points, or 7.8 per cent, between September 13 and September 26, 2022.
The ASX 200 finished that year down 5.5 per cent. Loading The ASX 200’s two-day drop, in contrast, doesn’t even qualify as a correction, which analysts define as the market retreating 10 per cent from a recent peak.
The ASX 200 is also still up 1.2 per cent for the year as of Tuesday’s higher close. “It’s important to zoom out.
[Monday’s] fall for the Nasdaq, S&P 500, and ASX on a five-year chart is merely a blip,” said eToro market analyst Josh Gilbert. “Pullbacks are uncomfortable for investors, but they happen and are simply the price of entry into the stock market. “Sell-offs of this magnitude highlight the importance of not timing the market and using a simple strategy such as dollar cost averaging.
” AAP Advertisement 6.56am Four illegal boats intercepted off WA coast By Olivia Ireland Finance Minister Katy Gallagher has confirmed four illegal boats have been intercepted off the coast of Western Australia, claiming it demonstrates the Australian Border Force (ABF) is doing exactly what is needed of them. The ABF said in a statement that Maritime Border Command (MBC) intercepted a single vessel and, following further enquiries, another three foreign fishing vessels were found and interdicted on the northern coast of WA.
An Australian Border Force Cape-class boat used for patrol operations against people-smuggling. Credit: 60 Minutes Speaking on ABC News Breakfast , Gallagher said protecting Australia’s borders was an “area of pressure” but that the ABF “is doing the job they need to do up there”. “We’ve got a massive coastline up there, I think the issue of illegal fishing is attracting the attention of Border Force, and I think it shows that if Border Force are concerned, they will intercept and deal with those fishing boats,” Gallagher continued.
Loading “This is going to be, you know, an area of pressure, but Border Force is resourced to do the job, we thank them very much for the work they’re doing. It’s difficult and complex work, but they’re doing exactly what we need them to do up there.” In a statement, the ABF said it had increased staffing, patrol vehicles and a rotary wing asset for rapid response.
“The operational response is ongoing and the ABF will not comment any further than to say ABF/MBC pursues strong enforcement action in cases of illegal foreign fishing,” the statement read. 6.22am Hard to sustain argument economy is running too hot: treasurer By Josefine Ganko More from Treasurer Jim Chalmers’ interview with ABC’s RN Breakfast this morning, where he was on the defensive, fielding a series of questions about the government’s efforts to combat inflation.
Chalmers was asked to respond to suggestions that government spending is fuelling the persistence of inflation. Here’s how he responded: I don’t agree with that. I don’t think that’s what the forecasts say .
.. our cost-of-living policies are helping to push inflation down in the near term, not up.
But the other point that I would make is that budget spending is not the primary determinant of prices in the economy, but we can be helpful and we are being helpful with the design of our cost-of-living policies which help us get back to target sooner. The other point that is crystal clear in the statement, and which the government and which I agree with, is that inflation has come off a lot. It’s sticky and more stubborn than we want it to be.
But I think it’s hard to sustain an argument that the economy is running too hot, or that people have too much spare cash given all of the data and all of the feedback that we get, which shows that’s not the case. 6.06am Watch: Kamala Harris introduces VP pick Tim Walz Vice President Kamala Harris formally introduced her vice presidential pick, Minnesota Governor Tim Walz .
The pair spoke at a joint rally in Philadelphia. Watch the speech below or on YouTube. AP Advertisement 5.
59am Treasurer defends inflation fight as interest rates hold steady By Josefine Ganko In a tense interview, Treasurer Jim Chalmers has defended the government’s approach to tackling inflation after the Reserve Bank opted to hold rates steady again yesterday. Treasurer Jim Chalmers. Credit: AAPIMAGE Speaking to ABC’s RN Breakfast this morning, Chalmers was asked if RBA governor Michele Bullock’s dousing of rumours of an interest rate cut before the end of the year was a “blow”.
“I try not to second guess the language that the governor uses or the forward guidance or the signalling that she engages in. It’s up to them,” Chalmers said. “I think the main conclusion to draw from yesterday’s decision, first of all, is a welcome outcome.
” “It’s a decision which recognises we have made progress on underlying inflation, there is uncertainty and the economic conditions are soft, and that’s why we saw what we saw yesterday.” The treasurer was then asked if the RBA’s increased underlying inflation forecast was evidence that the government’s energy rebates had “limited success” in artificially pushing down inflation. Chalmers rejected the premise of the question.
Loading “First of all, there’s nothing artificial about helping people with their cost-of-living pressures. That’s the first point. What the ABS has shown in recent inflation data is that the way that we’re delivering our cost-of-living help is pushing downward pressure on inflation.
And that is our objective,” Chalmers said. “Now, the way that the Reserve Bank forecasts and accounts for our cost-of-living help is the same way that the Treasury accounts for that. And the point that’s been lost since yesterday’s decision and the new forecast from the Reserve Bank, is that the Reserve Bank’s near-term inflation forecasts are better, not worse.
And that’s because of the design of our cost-of-living policies.” Chalmers concluded by noting Bullock had also credited the budget surplus with helping combat inflation. 5.
35am Albanese video-calls Olympians in Paris By Josefine Ganko In a slightly awkward group video call, Prime Minister Anthony Albanese congratulated a bunch of Australia’s Olympians on the team’s success so far. The group included swimmers Kyle Chalmers and Shayna Jack, and boxers Caitlin Park, Charlie Senior and Harry Garside. Albanese said the team has brought “excitement and pride” to Australia, even panning to first dog Toto who slept on the couch next to the PM throughout the call.
Head to our Olympics live blog for continuing coverage of all the action. 5.24am Labor MPs mourn sudden death of rising political star Labor politicians are paying tribute to Sarah Carter , the rising Labor star and former mayor who was found dead in Melbourne on Tuesday.
Victoria Police confirmed it was preparing a report for the coroner after finding a 45-year-old woman’s body at an address in Maribyrnong at 3.45pm. The death is not being treated as suspicious.
Federal Labor MP Julian Hill said Carter was a “beautiful human” who “had so much more to give”. Fellow Labor MP Andrew Leigh said Carter was “kind, funny and generous” in a tribute posted to X. Loading Bill Shorten, Minister for the NDIS and federal Labor MP for Maribyrnong, described Carter as a “remarkable, irreplaceable, dedicated, passionate advocate”.
“Children’s champion, community leader, Labor through and through. The best of us,” he said. Carter was touted by many as a future Labor MP and was well-liked and widely known in political circles in both Melbourne and Canberra.
The first woman to be elected mayor of Maribyrnong three times, she received multiple awards for her contribution to the council since she was first elected in 2008. She was serving her fourth consecutive term on the council. Advertisement 5.
06am Kamala Harris names VP pick By Farrah Tomazin Loading Vice President Kamala Harris has picked Minnesota Governor Tim Walz as her running mate for the White House, setting the scene for a historic election that has been completely upended by Joe Biden’s decision to pull out of the race. With 91 days until election day, Harris and Walz will now embark on a swing state blitz as they try to fend off Donald Trump and his heir apparent to the MAGA throne, J.D.
Vance. The 60-year-old Walz is a veteran of the Army National Guard and a former high school teacher who coached his football team to its first state championship. Read more about Walz’s credentials and political history here.
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