1. US stocks up again

The Yanks are getting positive again and it could only be because they think a drop in inflation is imminent. They could be wrong but the belief is rising, explaining why US stocks are up three days in a row! CNBC says “Stocks rose for another session Tuesday, as investors assessed sliding yields and new data for further clues into the health of the U.S. economy. Wall Street also awaited for earnings from key tech companies.” Home prices fell 1.3% in the 20 core cities studied month-over-month in August and the latest consumer confidence reading dropped. “The market is just starting to get some indication that economic data moving forward is likely to slow,” said Cliff Hodge, chief investment officer at Cornerstone Wealth. “The knock-on effects from there, perhaps, gives the Fed a bit more breathing room.”

2. Local stocks set to spike again

Our market is tipped to open up, with the S&P/ASX 200 Index set to rise 50 points. Is it Budget-related? I doubt it, with Wall Street’s strong jump, especially the 2% plus rise of the Nasdaq before the close, pointing to a growing belief in the US that inflation is due to fall. The Budget being pretty responsible won’t hurt the stock market but it won’t help all that much. It has just avoided a Liz Truss problem that a government gets when it plays the bad budgeting game.

3. Budget bludgeons buybacks

The AFR reports that: “A tax loophole used by some of Australia’s largest companies, including BHP and the big banks, will be shut down for off-market share buybacks to stop the “streaming” of franked dividends to shareholders under a measure estimated to raise $550 million.” This will stop the tax-effective returns of capital to shareholders to maximise cashing in on franking credits and limiting their capital gains tax, which a lot of retirees benefitted from because they were in the zero tax zone.

4. Sickening Medihack worries

The SMH says: “The federal government has activated emergency provisions to marshal all relevant agencies and departments behind its response to the Medibank cyberattack, in a sign of its growing concern about the escalating incident which may have affected up to 4 million Australians.” The stolen data is from current and former customers and includes names, addresses, birthdates, Medicare numbers, contact information and claims data from the private health insurer. The list of Medibank customers affected potentially includes high-profile Australians.

5. Business sponsors are taking their money home

The Australian reports that “mining billionaire Gina Rinehart’s dramatic decision on the weekend to pull out of her $15 million sponsorship of netball, following public stands taken by the national netball team about her, has already led to some of the major sponsors of sport in Australia to re-evaluate their involvement.”

PR experts are warning sporting bodies that if big companies pull out of sporting deals others will be afraid to risk brand damage by being in and then out of sponsorships. Players who don’t want to be linked to big companies that might offend some, for example alcohol businesses, might have to think about a pay cut or going back to the park with no pay!