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5 Things you need to know today

Switzer Daily
26 November 2021

1. Australia could face significant debt costs without stronger effort to reach net zero
Official government planners have modelled Australia’s debt costs on the grounds of a lagging net zero roadmap, which forecast that our cost of capital would increase by 100 basis points in an adverse climate change scenario. Despite committing to net zero emissions by 2050, the Morrison government’s modelling reportedly shows we will still be emitting 215 million tons of emissions by that time. According to research by FTSE Russell, Australia will default on its sovereign debt by 2050 if there’s a disorderly transition in the planet’s efforts to fight climate change.

2. Rising Covid cases in Europe continued to worry investors with Germany considering a full lockdown

And this follows Austria last week going into full lockdown and making vaccinations compulsory. This also comes as economic readings from Europe’s purchasing managers were strong but the concern is simply that a bout of lockdowns and virus-related restrictions will again slow down EU economies or even create recessions.

3. Local retailer Harvey Norman reports a plunge in sales and profits for first quarter but a Christmas turnaround is predicted

The CEO of Harvey Norman, Katie Page, has explained the sales and profit problem in terms of, well there were lockdowns in Sydney, Melbourne and country regions, closing down 168 stores. But she’s positive about the looming festive season thanks to high vaccination rates, elevated household savings and a booming housing market. Retail experts expect us to spend $60bn on Christmas this year.

4. Australia’s biggest apartment builder and Meriton founder, Harry Triguboff is set to build 11,000 next year, but he wants buyers and workers

And he’s cheering the Morrison Government’s decision to allow fully vaccinated skilled adults and students to enter Australia. “The majority of our buyers are Chinese and Indians and other Asians,” Mr Triguboff told The Australian but he added that those coming needed to be as young as possible and keen to work to fix our worker shortage problem.

5. Closed US market and covid resurgence in Europe calls for subdued ASX open

ASX futures were down 7 points or 0.1 per cent to 7400 near 7am AEDT, with the AUD down 0.1% to 71.90 US cents. In Europe: Stoxx 50 +0.4%, FTSE +0.3%, CAC ,+0.5%, DAX +0.3%. Australia’s 5- and 10-year bond yields are 1.45% and 1.86% respectively.


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