1. Plot against Albo’s IR bill brewing
Employers are plotting to stop the Albanese government passing its new industrial relations bill before the end of the year. And the Prime Minister has gone on the attack calling employers opposed to his IR Bill, which will give across the board pay rises to all workers in an industry, as being “ideologically opposed to workers being paid fairly”. He said he’d keep MPs in Canberra and extend Parliament closer to Christmas to get his Bill passed. Bosses, along with the independent Senator David Pocock say the Bill as being rushed and needs some reforms.
2. Local market tipped to rise today
The local stock market is tipped to open higher with good news on inflation and interest rates starting to build.
A 24-point rise at the start of trade is expected for local stocks today and the positivity is being powered by US economic data pointing to falling inflation, which in turn suggests interest rate rises in the US might soon peak. And though our interest rate rises will primarily rest on our inflation data, when the Americans stop raising rates it will take the pressure off the RBA to keep on hiking its cash rate. In fact, financial markets expect US rates to start falling by year’s end.
3. BNPL companies to be regulated?
Buy now, pay later companies such Afterpay and Zip could soon face regulation because of inappropriate lending. Treasury officials have looked at the buy now, pay later industry and believe loans to people, who aren’t well-equipped to carry debt, means these businesses should have to obtain a credit license and meet responsible lending obligations before they can extend loans to users of these services. These changes will be good for consumers but bad for these companies’ future profits and their share prices.
4. Big interest rate data drops of the week
Right now the Fed and the RBA are on data drop alert hoping to see reasons to believe that inflation is dropping and interest rate rises can eventually stop. Here are the big economic releases for the week. In the US, purchasing manager info, consumer sentiment, new home sales and minutes from the last interest rate rise decision from the Fed will capture market attention. Locally, the weekly consumer confidence reading, our purchasing managers’ data and a speech by Dr Phil Lowe on Tuesday could easily grab headlines.
5. Crypto chaos doesn’t deter banks
Despite crypto chaos banks still interested in playing in the space The AFR says: “Some Australian banks and financial institutions are pushing ahead with the adoption of blockchain technologies despite the turmoil engulfing cryptocurrency markets since the collapse of FTX, says rival platform OSL, as it establishes a permanent presence in the local market.”
Mark Hiriart, Sydney head of global distribution at OSL, which is a subsidiary of Hong Kong-listed BC Technology Group, says cryptocurrency technology still has life.
“Every big bank in the world is looking at this stuff and how to incorporate it into their business,” he said. That said, he expects the current problems driven by the collapse of FTX will put a pause on interest in the space for a while.