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Peter Dutton hopes for RBA interest rate reduction soon

Dutton urges interest rate cut as RBA meets, but economists warn of limited relief amidst strong economic conditions.

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Dutton urges interest rate cut as RBA meets, but economists warn of limited relief amidst strong economic conditions.

In Short

Peter Dutton is urging the Reserve Bank of Australia to lower interest rates as economists predict a potential cut after four years. Concerns remain about the impact of government spending on inflation and living costs, while the current government highlights economic progress amid cautious expectations for modest rate reductions.

Many money market analysts and economists anticipate a cut during the upcoming RBA meeting, marking the first reduction in over four years. However, borrowers are cautioned against expecting significant relief in 2025.

Independent economist Saul Eslake warned that the RBA might not reduce rates as aggressively as other central banks.

He noted Australia’s peak cash rate of 4.35 per cent is much lower than those in the US and UK, and the government faces ongoing budget deficits. The current strength of the Australian economy relative to other nations and potential global inflation from trade policies are also influencing this cautious approach.

Dutton expressed concerns for Australians impacted by 12 rate increases during the current government’s term. He linked inflation to government spending, emphasizing its effects on living costs.

In contrast, Treasurer Jim Chalmers highlighted the economic progress made under the current government, focusing on reducing inflation, increasing wages, and maintaining low unemployment.

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Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

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Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.


Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

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AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

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Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech


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RBA rate shock: ASX200, Gold and Crypto market

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

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RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.


The RBA’s latest interest rate decision has sent ripples through the ASX200 and AUD, leaving investors weighing what comes next. We break down how these changes could affect global equities ahead of this week’s crucial non-farm payroll and consumer price index releases.

Zoran Kresovic from Blueberry Markets shares his analysis on the rebound in gold and silver after recent market turbulence, and what factors could drive further gains or sell-offs in the commodities market.

We also dive into the current state of cryptocurrencies, exploring how investors can navigate volatility and what to watch as economic data continues to shape market sentiment.

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#RBA #ASX200 #GoldMarket #SilverRebound #CryptoUpdate #InvestingTips #MarketVolatility #EconomicOutlook


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