1. The good news about slow wages growth
The bad news is that wages have risen slowly. The good news is wages have risen slowly! Yesterday we saw wages rise 0.7% in the December quarter taking the annual wages growth up a good 2.3% but this is less than the 3.5% inflation rate. So the bad news is real wages (i.e. what we can buy with our pay) have gone down, although this could delay the first rise in mortgage interest rates.

2. Inflation is real and BIG!
Woolworths boss Brad Banducci warns us inflation is real and big and won’t be helped by the Russian-Ukraine conflict. Sanctions on Russia has pushed the price of oil towards $US100 a barrel, which will mean petrol pump prices will keep rising too. And it comes as Banducci tells us that shelf prices increased 2-3% last month, alone. He said construction product costs were up 50-70% and the cost of a container had gone from $900 to $4,500 since the pandemic. Inflation will take time and no more new viruses to ensure prices fall.

3. Putin’s a pain for stock owners
And on the Russia-Ukraine crisis, stock markets remain negative with our market expected to open 60 points down today. Our stock market was up 44 points yesterday as bargain hunters snapped up stocks seemingly oversold as panic from the Russian invasion took root on Tuesday. However, European markets were down overnight as Putin’s play worries investors, but the stock price falls there and even here have been reduced because companies, such as Woolworths, are reporting well. For stock players, Putin is a pain!

4. Analysts question the case for Bitcoin amid geopolitical tensions
Bitcoin fell to a two-week low on Tuesday after Russia ordered troops into two separatist regions in eastern Ukraine. Geopolitical tensions and climbing inflation are among the key factors weighing down on bitcoin’s price, yet according to the BTC narrative, this is when the cryptocurrency should be thriving. It’s recent performance has led analysts to question whether its status as a form of “digital gold” still rings true.

5. ASX futures down, earnings reports continue
ASX futures were down 75 points or 1.1% to 7043 near 6am AEDT, while the local currency was +0.2% to 72.39 US cents. On Wall St: Dow -0.2% S&P 500 -0.1% Nasdaq -0.8%. 2-year yield: US +0.07% (1.60%) Australia +0.14% (1.29%). US +0.06% (1.98%) Australia +0.09% (2.28%).