1. Did Russia bomb Poland?

Stock markets have a new worry: Russia bombing Poland, or did they? Just when the US got another positive sign that inflation is falling (which is a big plus for stocks). share prices have been hit by concerns about what Russia’s ‘hopefully’ accidental bombing of Poland (in targeting Ukraine areas close to the Polish border) could mean.  Moscow denied responsibility for the strike but European stock markets were down on the worries. However analysts now say it could’ve been a Ukraine defense missile.

2. Aussie first: regulate crypto

Australia could soon become the first country to regulate cryptocurrencies. The collapse of the cryptocurrency exchange FTX has Treasury strongly considering making Australia the first country to regulate this speculative, investing product. The AFR says Treasury has signaled it will open consultations to safeguard crypto custody arrangements and regulate exchanges next year. Treasurer Jim Chalmers is concerned about the lack of transparency and consumer protection in the crypto market.

3. Wage rises spark inflation fears

Workers are seeing pay rises at the fastest rate for a decade but this could be bad news for interest rate worriers.

Wages have spiked 3.1% for the year and rose a big 1% in the last quarter. Economists think this will force the RBA to raise interest rates again by 0.25% next month. Wages are the biggest driver of business costs and rising inflation is the biggest driver for interest rates going higher. Today we get the latest unemployment report and if the jobless rate falls, there could be more pressure on the RBA to keep hiking rates into next year.

4. UK shows why inflation control is vital

The SMH’s Robin Harris reports that “Britain’s rate of inflation hit a 41-year high in October, accelerating to 11.1 per cent on the back of rising energy and food prices, fueled by the economy fallout of Russia’s invasion of Ukraine.  “The Office for National Statistics said the rate rose from 10.1 per cent in September, putting inflation at its highest level since October 1981. Several economists had expected a rate of around 10.7 per cent,” he explained. The dramatic rise in the cost of living came despite the British government’s energy price guarantee, which capped bills for gas and electricity at £2500 ($4394) for a household with average usage of both fuels.

5. Big miners set to take Albo on!

Big mining companies are set to take on the Albanese Government — Rudd-style! The Australian says a big blue between miners and the Government is on the way. “Resources companies are preparing to replicate and exceed the $22m anti-mining tax campaign that led to Kevin Rudd’s demise if the Albanese government imposes new taxes and multi-employer bargaining on miners,” Geoff Chambers reports. “The Minerals Council of Australia, NSW Minerals Council and Queensland Resources Council will on Thursday launch a pre-emptive strike ahead of the final parliamentary fortnight of the year and cabinet’s deliberations on a new gas and thermal coal tax.” The message will be “increased taxes won’t reduce energy prices” and the group will argue against wages being raised across the industry warning that the ­industrial relations bill would ­incentivize strikes, threaten job security, lead to less productivity and suppress long-term wages growth.