15 August 2022
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5 Things you need to know today

Switzer Daily
1 August 2022

1. President Biden contracts Covid-19 again
President Joe Biden tested positive for Covid-19 once again after consecutive days of testing negative for the virus, his physician said. Biden is experiencing no new symptoms and “continues to feel quite well,” Dr. Kevin O’Connor said in a memo shared by the White House. But he will nevertheless “reinitiate strict isolation procedures,” the presidential physician wrote.

2. Another interest rate hike
There’s good news and bad news for home loan borrowers on how high interest rates might go. With the cash rate at 1.35% and likely to be 1.85% by Tuesday, the AFR says money markets now think the peak in the cash rate next year will be 3%. At one stage the money market tipped the cash rate would go to 4.5%, but CBA’s economics team thinks the cash rate will top out at 2.6%. The bad news is rates will go higher, but will be less than what was once expected.

3. Predicting your super fund returns this reporting season
On the local stock market, reporting season kicks off in earnest this week, and this will tell us what our major company CEOs think about their future. And the collective views of these big company bosses will give us a snapshot of our business and economic future. It will also determine what happens to their share prices, and that will affect our super fund returns. Last financial year for industry funds, the median loss was 3.7%, so super fund members need local companies to have a good financial year.

4. Aussie market expected to rise today
Despite economists all tipping another 0.5% interest rate rise from the Reserve Bank tomorrow, the local stock market is expected to open higher today.

And that’s because that interest rate rise here won’t be the last and our economy is still looking strong. In contrast, the US economy is in a technical recession, but economists over there think it’s a mild one. They also think it will stop the US central bank from doing big interest rate rises. Stock markets fear rate rises and love rate cuts and our stock market plays follow the leader with Wall Street.

5. Emma McKean wins 11th gold medal, becomes most successful Commonwealth Games athlete
Australian swimmer Emma McKean has become the most successful Commonwealth Games athlete overnight after winning her 11th gold medal in the pool for the women’s 50m freestyle. She was also part of the Australian women’s 4x200m relay team that broke the world record. “Australia cemented their position atop of the medal table on day three, with a further nine golds across rugby sevens, gymnastics, swimming and track cycling to take the country’s total haul to 22 gold – double that of host nation England in second place.” (The Guardian)

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