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5 Things you need to know today

Switzer Daily
3 December 2021

1. 2022 rate hikes still on the cards for Australia
Chief Investment Officer at JBWere Ltd, Sally Auld says Australia’s unemployment rate is likely to drop to the “low fours” in 2022, triggering a much-anticipated rise in wages growth and laying the foundation for interest rate rises. “To get a rate hike by the end of the year, you need all the numbers to print in the right zone both on wages and on core inflation. And that’s a possibility, absolutely … I think it’ll be the fourth quarter of next year or first quarter 2023”. However, the RBA remain firm on the view that interest rates will sustain at the record low 0.1% until 2024.

2. Major banks exposed for engaging in forex trading cartel
The European Commission has fined five global banks (UBS, Barclays, RBS, HSBC and Credit Suisse) a combined total of 344 million euros for taking part in a foreign exchange trading cartel. CNBC reports: “The investigation, focused on the trading of G-10 currencies, revealed that foreign exchange traders in these five banks discussed sensitive information and trading plans.” Those involved conducted their trading plans on a professional online chatroom called Sterling Lads.

3. Morrison government urges for more female ministers in Liberal Party seats
After yet another male member from the Coalition was stood down this week following allegations by a former romantic partner of “abusive behaviour”, the federal Liberal Party is desperate to reconstruct their image and preselect senior female candidates for two key seats. One of whom is veteran gender equality consultant Libby Lyons. The seats have been vacated by Alan Tudge, the politician stood down this week and Health Minister Greg Hunt, who announced he will retire at the next election.


4. Market reacts kindly to newly appointed Macquarie boss
Former RBA governor Glenn Stevens has been appointed the new chairman of Macquarie Group, which is commonly recognised as one of the most prestigious business roles in the country. Veteran banking analyst Brian Johnson of Jeffries says the appointment is the rights fit and was a long time coming. “When you look at Macquarie, the fact that they’re incentivised to look so much longer creates the value,” he said. “They’re all about positioning themselves to be in the right place early, and Glenn will continue that.” It’s one of many recent tail winds for the company: “Fresh from raising $2.8 billion in new equity earlier this week, the silver doughnut’s market capitalisation recently overtook that of big four bank ANZ,” the AFR reports.

5. ASX futures follow global rebound
A strong rebound in New York bodes well for the Aussie market this morning, also flagged by ASX futures which were up 60 points or 0.8% to 7278 near 7am AEDT. The AUD dipped 0.2%, however, the Bloomberg dollar spot index was little changed, market a moment of calm in an otherwise turbulent week for markets. On Wall St: Dow +2%, S&P 500 +1.6%, Nasdaq +0.7%.

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