Economic and market news
In Australian news this week, new data show that economic growth slowed to 0.2 per cent in the June quarter. The quarterly GDP reading brought annual growth to just 1 per cent – the weakest annual GDP result since the end of the early 1990s recession, outside of the coronavirus pandemic. GDP per capita was down for the sixth consecutive quarter, falling to 0.4 per cent.
There was considerable follow on commentary about these statistics, much of which related to the Treasurer ‘blaming’ the central bank for the slow down, without acknowledging the inflationary impact of government policies which are making its job of tackling inflation more difficult. Aligned with that, was new information that suggests that almost half of all jobs created in the first six months of 2024 were classified as ‘public sector’ - public sector jobs usually make up about 15 per cent of the labour market, illustrating the stimulatory impact of current levels of government spending.
Meanwhile, in coverage one of her key speeches of the year, the Reserve Bank of Australia’s Governor was said to have dismissed discussion of official interest rate cuts as ‘premature’, given underlying price pressures remain stubborn despite weak economic growth. Ms Bullock also said inflation – not interest rates – is the key cause of the nation’s economic challenges.
In overseas news, inflation in China cooled to its weakest in more than three years. The consumer price index excluding volatile food and energy costs rose just 0.3 per cent in August from a year earlier. The broader CPI increased 0.6 per cent, missing expectations even though it was buoyed by higher food costs due to bad weather last month.
Australian indices
ASX 200: Fell 1.13 per cent over the week to close at 8011.9 points on Tuesday.
All Ordinaries: Also fell, 1.27 per cent, in the period, to close at 8217.0 points on Tuesday.
Government Bonds
Government Bond Yields (Source: Bloomberg)
|
NAME |
COUPON |
PRICE |
YIELD |
1 DAY |
1 MONTH |
1 YEAR |
|
GTAUD2Y:GOV Australia Bond 2 Year Yield |
4.25
|
100.92 |
3.64% |
-3 |
-13 |
-17 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
98.76 |
3.54% |
-3 |
-16 |
-28 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
98.73 |
3.91% |
-5 |
-14 |
-17 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
90.20 |
4.13% |
-5 |
-14 |
-19 |
Reserve Bank of Australia (Source:RBA)
|
RBA CASH RATE TARGET (RBATCTR:IND) CURRENT (per cent) |
MOST RECENT DECISION (percentage points) |
MOST RECENT CHANGE (percentage points) |
1 YEAR PRIOR (per cent) |
|
4.35 |
+0 (6 August 2024) |
+0.25 (7 November 2023) |
4.10 |
Currencies (Source:RBA)
As at the close on 10 September the AUD/USD had fallen another 1.08 per cent over the week, closing at 0.6668 on Tuesday. The AUD/RMB had also fallen, 1.11 per cent, in the period, closing at 4.7469 on Tuesday.
Venture Capital
BioScout
Great news for Stoic investees BioScout. It has won the silver medal in the 'Cultures' category under the 2024 Vinitech-Sifel Innovation Awards. This award highlights its continuous efforts to use cutting-edge technology to support winegrowers to safeguard their vines from fungal infections.
ENA Respiratory
More exciting new for Stoic investee ENA Respiratory this week. It announced that it has have been awarded a new US$3.13 million contract extension by the United States Department of Defense. This will fund inclusion of younger adults (aged 18–45) in the ongoing Phase Ib study of the INNA-051 nasal dry powder formulation and drug product optimisation activities.
The new funding extends the US$8.18 million already committed by the Department to support the development of this drug.
Cardihab
Stoic investee Cardihab shared some interesting data and insights on the comparative incidence and outcomes of cardiovascular disease for men and women.
Property
In property news this week, the national auction clearance rate was up to 71.7 per cent, from 70.2 per cent last week. This was despite the fact that there were more than 2,000 homes available, for a fourth consecutive week - 2,065 homes went to auction last week, down from 2,315 the week prior and lower than the 2,275 homes auctioned a year ago.
