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5 Things you need to know today

Switzer Daily
5 September 2022

1. Uber deliveries set to rise in price
The cost of what you pay to get your food delivered by Uber, Deliveroo and others is set to rise, with the Albanese Government set to look after gig economy workers. The executives of gig economy businesses have been contacted by the Department of Employment and Workplace Relations and told that their workers’ pay and conditions will be improved by new laws and under the watchful eye of the Fair Work Commission.

Once treated as contractors, many will be assumed to be employee-like workers, which will raise costs to the businesses that deliver your food and drive you around the place.

2. Rates set to go up again tomorrow
Interest rate repayments are set to rise by another 0.5% after Tuesday when the Reserve Bank meets to review the cash rate of interest. All economists expect a rise on Tuesday and most expect a 0.5% increase. This will take the cash rate to 2.35%, which is getting close to where the Reserve Bank might be thinking that it’s time for a smaller increase or a pause. Ultimately it will depend on economic data about inflation, but a 0.5% rise in rates will increase monthly home loan repayments on a $500,000 loan by $144 a month.

3. Economic growth rate set to fall
One important data drop this week will be our latest economic growth rate, due out on Wednesday for the June quarter. So, what’s expected? Being the June quarter, there was a minimum impact of interest rates on how fast the economy is growing. That should show up in the September quarter, as the big interest rate rises are now starting to bite, with house prices falling in August by 1.6%, which was the biggest drop in almost 40 years. Economists think we grew at 1% for the quarter and 3.6% for the year.

4. Energy concerns mount in Ukraine and Europe
Much of the Russian-controlled Zaporizhzhia region, including the key city of Melitopol, lost power on Sunday.

IAEA Director-General Rafael Grossi said his big concerns are the plant’s physical integrity, its power supply and the staff’s condition.

“European Union energy ministers were slated to hold an emergency meeting Friday in Brussels to discuss the bloc’s electricity market, which European Commission President Ursula von der Leyen has said ‘is no longer operating,’” CNBC reports.

5. ASX futures point downwards
ASX futures were down 16 points or 0.23% to 6792, with the AUD +0.4% to 68.12 US cents.

On Wall St: Dow -1.1% S&P 500 -1.1% Nasdaq -1.3%.

In Europe: Stoxx 50 +2.5% FTSE +1.9% CAC +2.2% DAX +3.3%.

10-year yield: US 3.19% Australia 3.64%.

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