Good morning from Sydney! While you were sleeping, the Federal Reserve increased rates by 25 basis points, as expected. Here’s what’s making headlines today:
Australia’s inflation rate eased more than expected in the second quarter, reinforcing the case for the Reserve Bank of Australia (RBA) to consider a pause at their upcoming meeting. Consumer Price Index (CPI) rose by 6%, missing forecasts of a 6.2% gain.
Australia and New Zealand are exploring simplified travel options between the two nations, aiming to strengthen their economic ties, trade relations, and collaboration on climate change initiatives.
Rio Tinto reported a significant drop in profits and dividends, reflecting challenges in the global mining sector, particularly due to uncertainties in China‘s economy. Rio Tinto’s shares fell by more than 3% in London trade, and hopes for a major infrastructure stimulus in the iron ore market are fading.
Old-style bank securities issued by Westpac saw a surge in prices, yielding over 50% returns in the past four months, as the bank joins a wave of redemptions.
Fiji’s Prime Minister, Sitiveni Rabuka, had to cancel a visit to China after a fall down a flight of stairs while looking at his phone, resulting in minor injuries.
Main Sequence, the tech-focused venture capital firm backed by Australia’s national science agency, successfully raised A$450 million from global investors, including Daiwa Securities and LGT Crestone.
The Federal Reserve raised rates by 25 basis points, keeping the possibility of further increases open. Jerome Powell noted that future rate hikes will be data-dependent.
Meta (Facebook) reported a revenue beat and anticipates double-digit revenue growth for the third quarter, with over 3 billion monthly active users and nearly 3.88 billion total apps.
Samsung introduced its fifth-generation foldable smartphones, aiming to compete in a challenging market.
Watch out for Fortescue’s quarterly output report and the release of the 2Q Import Price Index at 11:30 a.m.
Lastly, Waldorf Astoria emerged as the most beloved luxury hotel brand, overtaking Ritz-Carlton in the J.D. Power list, based on customer satisfaction surveys. The top five also includes Four Seasons, Grand Hyatt, and the Luxury Collection.