In this section
Offers for readers
Follow the news from interest
The comment stream
- 1 of 28159
- 1 of 394
The news stream
- RBNZ exempts new house construction from LVRs 120
- RBNZ lifts interest rate forecast 44
- You want a green economy? Support mining! 44
- House prices soar, sales weak 42
- Fonterra slashes profit forecast, axes dividend 23
- 90 seconds at 9 am: Volcker rule flies 15
- Bernard's Top 10 14
- 'No investment is absolutely guaranteed' 10
- English eyes regulatory 'health check' 8
- Housing loans bouncing back 5
90 seconds at 9 am: Aussies cut rates 0.5%, bigger than expected; Dow surges to highest since 2007, Fonterra auction weak again
David Chaston details key news overnight in 90 seconds at 9 am including news that Australia's central bank cut interest rates by a hefty half-percentage point late yesterday, signaling a shift in its focus away from fighting inflation and toward safeguarding growth. Disappointing housing trends probably tipped the decision to go for a big cut.
The Australian Treasury department remains bullish on the future of Chinese demand for Australian resources and agricultural products, saying China's appetite for commodities will keep rising until the early 2020s. Some have worried about the China boom running out of steam, but that is not the way the Australian government sees it.
Oil prices jumped more than $2 per barrel. Gold was unchanged.
An official gauge of manufacturing activity in China showed improvement in April, but economists cautioned the overall economic outlook remains unclear.
Closer to home, today's Fonterra auction saw prices fall another 2.4% and dairy prices are now at their lowest level since August 2009. They have fallen one third since the last peak in 2011.