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EXCLUSIVE: Australia’s finance minister reveals warfare focus in combating economic recovery

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Despite the challenges, our economic recovery is leading the world. This is not a time to change course. This is a time to stick to our plan. Those are the words of Australian treasurer Josh Frydenberg as he handed down the Australian Federal budget for 2022.

So what are the key takeaways who wins and who loses out? Minister for Finance of Australia Simon Birmingham joined ticker in an exclusive interview with presenter Holly Stearnes.

Where does Australia sit in economic recovery?

Birmingham says leading Australia’s economic recovery from COVID-19 by driving unemployment down the lowest levels Australia has seen in 50 years,

“We’re ensuring that we take the dividends of a stronger economy and deliver low deficits,” he says.

He points out that helping Australians with immediate cost of living pressures is a key priority whilst staying responsive to the fact that the war in Ukraine has seen a huge spike in oil prices.

“That of course, is hurting many, many Australians. And so as we did with COVID-19, temporary targeted responses to unforeseen events, we’re doing the same here cutting fuel prices by 22 cents a litre, ensuring that there’s additional payments for low and middle income earners and fixed income earners on government payments.”

Would a focus on cutting the costs of living still be on the table if there wasn’t an election?

Birmingham says It’s about maintaining consumer confidence and business confidence, “because we know that fuel prices have a direct impact”

“If we don’t maintain that confidence, then it can disrupt the economic growth for Australia,” he says.

“We showed during COVID-19 A long, long way away from elections at that time, that were unforeseen global events had a direct impact on Australian businesses, we would respond in targeted, temporary and responsible ways. In this case, oil price spikes, which aren’t expected to stay at these elevated levels forever.”

Australians will be showered with one off cash payments and cuts to petrol, as well as income taxes. This is all designed to lower the cost of living, but will that extra money eventually result in higher inflation?

Birmingham says the Australian budget predicts for inflation, and that takes in account all of the budget decisions that have been made

“We’ve been very careful in making sure the measures we apply here, don’t add those inflationary elements. We know that overseas, there are significant pressures on interest rates globally, and banks have indicated central banks have indicated that there will be a normalisation of those rates,” he told ticker.

According to Birmingham, Australia has managed to better manage inflationary pressures than anywhere else in the world with inflation running around half that of the United States or other nations.

What about wages?

“We do see a recovery in terms of growth in wages over the next few years” Birmingham says.

“We’re forecasting three and a quarter percent wages growth, ahead of inflation, so real wages growth, and that growing over the budget forward estimates to three and a half percent growth.”

Birmingham says priority is investment in productive infrastructure around the economy, initiatives to achieve higher uptake of skills, particularly in small businesses, but also with apprenticeships, Investment in digital economy strategy, and driving higher uptake of digital technologies, particularly across small businesses are tax incentives for all businesses – to bring forward investment that have been achieving higher levels of investment in the economy, business investment and non mining sector investment in Australia.

“They all add to the productivity if the country in different ways, and again can hope to achieve a sustainable improved wages outcomes into the future,” he says.

How does Ukraine impact the economy?

“The world is in a very volatile position the uncertainties of the globe from the aftershocks of COVID disruptions to global shipping and transport,” Birmingham says.

“Russia’s horrific invasion and actions on Ukraine and China assertive posture in a range of different ways have all had destabilising impacts around the globe.”

He says there has been more in defence capability in navy or Air Force. Our army will continue to do that, through investment in new technologies and missiles and artificial intelligence through the orcas pact that we struck with the US and the UK.

“But in this budget, we have particularly identified the new area of warfare – cyber warfare as being an important sphere for investment, a $9.9 billion investment over the next decade to enhance both defensive and offensive cyber capabilities, which is about ensuring that our banking sector, telecommunications sector, energy sectors, all about transport and logistics, all of the areas of government operations can be effectively protected from cyber attacks which Australia has seen in the past.”

“Thankfully, we are with a world leading capability in the Australian Signals Directorate already, but this investment will keep us ahead,” he concluded.

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Trump orders Pentagon to resume nuclear testing immediately

Trump orders Pentagon to resume nuclear testing, raising concerns over arms race and global safety

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Trump orders Pentagon to resume nuclear testing, raising concerns over arms race and global safety

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In Short:
– Trump ordered the Pentagon to resume nuclear testing, risking global tensions and retaliation from other nations.
– Proliferation concerns are rising as nuclear states modernise arsenals and the New START Treaty nears expiration.
US President Donald Trump has ordered the Pentagon to resume nuclear weapons testing immediately, aiming to align with testing programs from other countries according to the conversation.Resuming explosive nuclear tests would likely trigger retaliatory responses from nuclear-armed nations like Russia and China, worsening the arms race and increasing global risks.

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The potential for worldwide radioactive fallout remains high, even for underground tests. The Comprehensive Nuclear Test Ban Treaty, signed by 187 states, prohibits such testing, yet the US remains a signatory without ratification, bound not to violate the treaty’s intent.

Nuclear weapon testing, once crucial for understanding weapon effects and military planning, has diminished. Since World War II, nuclear tests have largely focused on developing new designs. Significant environmental and health concerns led to a moratorium on atmospheric testing in the early 1960s and the Partial Test Ban Treaty in 1963.

Many countries, including the US, stopped explosive testing in the 1990s. Technological advancements allowed nations to develop nuclear weapons without the need for actual explosions.

Proliferation Risks

Nuclear proliferation continues, with all nine nuclear-armed states investing heavily in modernising their arsenals. This raises concerns about lowered thresholds for using such weapons.

Recent conflicts involving nuclear threats have escalated, and the number of nuclear weapons operationally available has begun to rise again. Russia has tested advanced nuclear weapons, while China is rapidly expanding its military capabilities.

The New START Treaty, which confines the nuclear capabilities of the US and Russia, is set to expire soon, with no successor treaty negotiations underway.

The Doomsday Clock has moved closer to midnight this year, highlighting the heightened dangers facing the world today.

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US–China trade talks are a handshake, not a deal

Trump and Xi unofficially extend tariff truce, with US concessions and Chinese commitments on soybeans, fentanyl, and rare earths.

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Trump and Xi unofficially extend tariff truce, with US concessions and Chinese commitments on soybeans, fentanyl, and rare earths.


Presidents Trump and Xi extend their tariff truce in an informal meeting, with US cuts and Chinese promises on soybeans, fentanyl, and rare earths.

Steve Gopalan from SkandaFX cautions this is unofficial and deeper issues between the two super powers remain.

#USChina #TradeTruce #Tariffs #GlobalMarkets #Soybeans #RareEarths #UnofficialDeal #TickerNews


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Markets cautious as rate cut hopes fade

Central banks ease rate cut hopes amid inflation and wobbling tech stocks; markets adjust to Fed’s new stance.

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Central banks ease rate cut hopes amid inflation and wobbling tech stocks; markets adjust to Fed’s new stance.


Central banks pull back on rate cut expectations as tech stocks wobble and inflation pressures persist. Markets adjust cautiously to the Fed’s new tone.

#Markets #Fed #InterestRates #Inflation #TechStocks #CapitalMarkets #TickerNews #Economy #FinancialUpdate


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