Call us on 1300 794 893

Business News

5 things you need to know today

| More

Published on: Friday, September 06, 2019

1. The risk of house price bubbles and financial instability would be increased under changes to the agreement between the Reserve Bank and the government on the inflation target, economists including the University of NSW's Richard Holden have warned according to the AFR.

2. British Prime Minister Boris Johnson has said he would "rather be dead in a ditch" than ask the European Union for a further Brexit delay. Johnson would be forced to delay Brexit until January next year under a bill passed by MPs this week, unless MPs vote in favour of a new deal or a no-deal Brexit by October 19.

3. ANZ economists are predicting the Reserve Bank could cut interest rates to 0.25% by mid next year. Along with a 25 basis point cut next month, The Australian quoted David Plank, head of Australian economics at ANZ, as saying that "At this stage, we think the RBA will deliver further cuts in February and May against the backdrop of a sticky-to-higher unemployment rate and continued global uncertainty." 

4. Following an announcement that US and Chinese officials are planning to resume trade talks in early October, the major Wall Street indexes soared higher. The Dow Jones rose 1.41% to 26,728.15, the S&P 500 gained 1.30% to 2,976 and the Nasdaq closed up 1.75% to 8,116.83.

5. Ray Dalio, the founder of Bridgewater Associates, the world's largest hedge fund, has estimated there is a 25% chance the US economy will enter a recession this year. In an interview with David Rubenstein, Dalio warned that central banks "have to face the fact that when the next downturn comes there will not be the power to reverse it in the same way that existed before".


New on Switzer

blog comments powered by Disqus

  THE SWITZER FEED
Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300 Pixel_admin_thumb_300x300