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“The state of the union is strong”

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U.S. President Joe Biden delivers his second State of the Union address to a joint session of congress

U.S. President Joe Biden has delivered his second State of the Union address, sparring with Republicans and appealing for bipartisanship.

With the sitting president eying off the possibility of running for a second term in office, he needs to deliver real change and get the public back on side.

In a show of unity, Biden began his address by congratulating the incumbent House Speaker, Kevin McCarthy.

This is the first time Biden has addressed a GOP-controlled House.

The theme of today’s speech was certainly optimism for the future.

Biden trying very hard to convince the American people his administration is equipped to lead the nation through these turbulent economic times.

Economic uncertainty

The country’s economy was front and centre, with Biden noting it has recovered more quickly from the Covid-19 pandemic than many other major markets.

Inflation’s at a record high, and while it’s beginning to cool after hitting 9.1 per cent, Americans aren’t feeling the impact just yet.

In fact, only only 21 per cent of residents rate the current economic conditions as positive.

Biden’s legislative achievements were front and centre

Biden’s legislative achievements include a sweeping health and climate package, an infrastructure law and investments in the semiconductor industry.

All federal infrastructure projects will need to have materials which have been made in America.

Biden says his economic plan is about investing in places and people that have been forgotten.

The president believes too many people have been left behind.

Biden took aim at big business

As America suffers through an energy crisis, the president says oil companies have pocketed $200 billion in profits.

He says corporations should do the right thing.

Climate change was also addressed

Biden has promised to build new storm resistant power grids, roads, electric vehicle infrastructure, while providing tax credits for residents who want to purchase their own EV.

When it comes to global warming – Biden wants to “finish the job”.

Taxing the rich

Biden reiterated his promise not to tax anyone who earns under 400,000 a year.

“No billionaire should be paying a lower tax rate than a school teacher or a firefighter,” he said.

When it comes to the debt ceiling, Biden warned Republicans not to attempt to cut social security or medicare benefits.

The U.S. hit the debt ceiling set by Congress in January, forcing Treasury to start taking extraordinary measures to keep the government paying its bills.

House Republicans say they will only lift the borrowing if the government introduces spending cuts.

“Folks – as we all apparently agree, Social Security and Medicare is off the books now, right? They’re not to be touched,” Biden said. “We’ve got unanimity!”

“Let’s all agree, and apparently we are, let’s stand up for seniors,” he said. “Stand up and show them! We will not cut Social Security; we will not cut Medicare.”

He added: “If anyone tries to cut Social Security – which apparently no one is going to do – I’ll stop them. I’ll veto it.”

Police brutality

Perhaps unsurprisingly, safety and police brutality were featured in the address.

Biden made a point of acknowledging the parents of late Tyre Nichols.

29-year-old Nichols was beaten to death by police officer in Memphis.

His death has renewed calls for police reform and reignited a national conversation on justice in policing.

Biden’s message: “They must be held accountable”.

Gun reform and abortion rights

Biden reignited calls for gun reform – calling for a ban on assault weapons.

It follows the recent mass shooting in Monetary Park, California.

Abortion rights are a hot topic in the United states.

The U.S. Supreme Court overturned Roe v Wade in late June 2022, repealing a nationwide protections for the procedure which were put in place 50 years ago.

If Congress attempts to pass a national ban on abortion, Biden says he will veto it.

The infamous Chinese balloon was also mentioned.

Biden says it’s never a good move to bet against America.

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Powell warns against further December interest rate cuts

Powell warns against assumptions of further rate cuts, highlighting divisions within the Fed amid ongoing economic uncertainties

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Powell warns against assumptions of further rate cuts, highlighting divisions within the Fed amid ongoing economic uncertainties

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In Short:
– Jerome Powell stated further interest rate cuts are uncertain after recent decreases, aiming to manage market expectations.
– The Fed ended its balance sheet reduction due to lending market disruptions and mixed views on future rate cuts among officials.

Federal Reserve chairman Jerome Powell indicated that further interest rate cuts are not guaranteed following the recent decrease. In a press conference, he stated that a further reduction in December is “far from” certain. His comments aimed to temper market expectations, where the likelihood of another cut was previously estimated at over 90 per cent.In response to Powell’s remarks, yields on the two-year treasury rose, and traders adjusted their expectations, now estimating a 60 per cent chance of a December reduction. Recently, the Federal Open Market Committee voted 10-2 to lower the federal funds rate target range to 3.75-4 per cent, in response to concerns about the labour market.

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The Fed has also announced an end to its balance sheet reduction efforts due to disruptions in short-term lending markets. Since 2022, the bank has reduced its asset holdings by over $US2 trillion following aggressive purchases aimed at stabilising the economy after the pandemic.

Policy Divisions

Recent post-meeting statements highlighted mixed views among Fed officials about the pace of future rate cuts. Powell remarked that uncertainty surrounding economic conditions necessitates a cautious approach. Ongoing government shutdowns have limited policymakers’ access to crucial economic data, complicating decision-making.

Recent labour market developments show slowed job gains, raising concerns about employment. The Fed is also cautious about reducing rates too quickly due to inflation remaining above their 2 per cent target, reflecting a complex economic landscape. Policymakers have struggled with decisions amid data limitations from the government shutdown, impacting their assessments of inflation and economic indicators.


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Trump finalises trade deal with South Korea at summit

Trump and South Korea finalise trade deal as he prepares for vital summit with Xi Jinping in Busan

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Trump and South Korea finalise trade deal as he prepares for vital summit with Xi Jinping in Busan

<iframe width=”560″ height=”315″ src=”https://www.youtube.com/embed/GB4FDyAt_a4?si=lN5bO3Upkyr75zAa” title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” referrerpolicy=”strict-origin-when-cross-origin” allowfullscreen></iframe>
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In Short:
– Trump and South Korea’s Lee finalised a trade deal requiring $350 billion in U.S. investments.
– Trump anticipates favourable talks with China to reduce tariffs and improve relations.

Donald Trump and South Korean President Lee Jae Myung finalised a contentious trade deal at a summit in South Korea on Wednesday. The U.S. President expressed optimism about an upcoming summit with China’s Xi Jinping.The agreement, unveiled in late July, stipulated that South Korea would make $350 billion in new investments in the U.S. to avoid significant tariffs on imports. However, negotiations on the investment structure had stalled.

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Trump and Lee reached a compromise allowing Seoul to divide its $350 billion investment into $200 billion in cash, paid in $20 billion instalments. The remaining $150 billion will be allocated to shipbuilding investments.

Upon arrival from Tokyo, following a North Korea missile test, President Trump received an extravagant welcome in the historic city of Gyeongju, the venue for this year’s Asia-Pacific Economic Cooperation forum.

His discussions with Xi are scheduled for Thursday in Busan. Trump downplayed the North Korea missile test and focused on his meeting with Xi, the leader of the world’s second-largest economy.

“I think we’re going to have a very good outcome for our country and for the world,” Trump stated. He anticipates reducing U.S. tariffs on Chinese imports in exchange for China agreeing to control the export of fentanyl precursor chemicals. The Wall Street Journal reported that tariffs could be halved from the current 20%.

China’s foreign ministry indicated that the upcoming meeting would foster positive developments in U.S.-China relations.

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December rate cut all but locked in

Australia’s economy struggles; rate cut impending but signals deeper issues, not recovery. #RBA #InterestRates #FinanceNews

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Australia’s economy struggles; rate cut impending but signals deeper issues, not recovery. #RBA #InterestRates #FinanceNews


Australia’s economy is losing steam, with weak consumer confidence, falling job ads, and a struggling construction sector, a December rate cut now seems inevitable. But it won’t be a win, it’ll be a warning.

#RBA #InterestRates #AustraliaEconomy #Inflation #Growth #Recession #FinanceNews #CPI #Economy #RateCut


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