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5 Things you need to know today

Switzer Daily
1 July 2022

1. New Zealand to enter recession in 2023 according to Bank of New Zealand
With business sentiment continuing to plunge across the ditch, economists at Bank of New Zealand have forecast a “mild” recession in 2023. The survey from ANZ Bank “was littered with indicators that fit with our view that the economy is headed into recession,” said Stephen Toplis, head of research at BNZ in Wellington. “If anything, they suggest any such recession might be deeper than we have penciled in.”

“The business confidence index by ANZ Bank fell to minus 62.6, nearing the record-low of minus 66.6 reached in April 2020 when the country was in its first lockdown of the pandemic,” Bloomberg reports.

2. Australia ranks 9th in best nation to reside during next covid phase
Australia has ranked 9th with a score of 78.1/100 in Bloomberg’s Covid Resilience Ranking which tracks the best and worst places to be during the pandemic, issuing monthly updates. The ranking has been live since November 2020, and after 20 editions, June 2022 will be the final update given most countries have settled in to their permanent positions as the world works to live with the virus.

“A consistently strong performer in the Covid era, South Korea moves into first place in June, followed by the United Arab Emirates and Ireland. No. 1 for three months in a row, Norway drops to fourth place, with Saudi Arabia rounding out the top five,” Bloomberg reports.

3. CBA increases fixed rates by 140 bps
The move from Australia’s largest bank to hike fixed interest rates for investors and mortgage holders by 140 bps has added to the mounting pressure on an already tenuous housing market.

“The new rates for one- to five-year fixed rates are in some cases more than three times the bank’s cheapest fixed rate of less than 2 per cent on offer about 12 months ago when strong competition was driving down prices,” the AFR reports.

A bank spokesman blamed the rises, which applied from Thursday, on “increases in funding costs and as a result of current market conditions”.

4. Sydney to host famous South by Southwest festival in 2023
For the first time since its inception in 1987, the high-profile South by Southwest (SXSW) cultural festival will be held outside the US in Sydney for 2023. SXSW attracts many high-profile creators in industries ranging from music, film, arts, fashion, tech and more.

“SXSW Sydney is expected to be a huge boost to the city’s post-pandemic economic recovery and will include 1,000 sessions, including screenings and performances, across the harbour city,” the SMH reports.

5. ASX futures point to slight rise despite Wall St sell-off
ASX futures were up 3 points or 0.05% to 6464 near 5.15am AEST, with the AUD +0.5% to 69.13 US cents.

On Wall St: Dow -0.5% S&P 500 -0.4% Nasdaq -0.7%.

In Europe: Stoxx 50 -1.7% FTSE -2% DAX -1.7% CAC -1.8%.

2-year yield: US 2.94% Australia 2.58%. 10-year yield: US 2.98% Australia 3.65%.

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