Economic and market news
In economic news this week, the Business Council of Australia was said to be cautioning the Federal Government on the costs to the country of the policy changes it has made. In particular, it called out embedded inflexibility in the workplace from industrial relations reform, increasing red tape and investor uncertainty from repeated inquiries into major industries. It also stressed the need for serious tax reform. All of these issues were highlighted as part of the ongoing decline in productivity, reduced investment and inward foreign investment, and lower economic growth.
In overseas news, inflation in the United States apparently dropped to a three-year low in August. During the month prices rose just 0.2 per cent on a seasonally adjusted basis, the same increase as in July. Consumer prices rose 2.5 per cent in the year to end-August, down from 2.9 per cent, marking the fifth straight drop and the smallest such increase since February 2021.
Annual core inflation, which excludes volatile food and energy costs, was unchanged at 3.2 per cent, but rose 0.3 per cent during the month – a pickup from the previous month’s 0.2 per cent increase.
It is expected that these data will allow the Federal Reserve to proceed with a 25 basis point interest rate cut at its meeting next week – the last before the presidential election.
Elsewhere, the European Central Bank dropped its official interest rate for the second time, amid a ‘stumbling’ economic recovery. Inflation in the euro-area fell to 2.2 per cent in August, and figures showing that the rapid wage increases that have been driving price gains are slowing, giving the ECB ‘space’ for a policy loosening.
Australian indices
ASX 200: Rose 1.61 per cent over the week to close at 8140.9 points on Tuesday.
All Ordinaries: Also rose, 1.75 per cent, in the period, to close at 8361.2 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
|
101.06 |
3.55% |
+2 |
-14 |
-30 |
|
GTAUD5Y:GOV Australia Bond 5 Year Yield |
3.25 |
99.18 |
3.44% |
+2 |
-15 |
-42 |
|
GTAUD10Y:GOV Australia Bond 10 Year Yield |
3.75 |
99.34 |
3.83% |
+2 |
-10 |
-27 |
|
GTAUD15Y:GOV Australia Bond 15 Year Yield |
3.25 |
91.10 |
4.04% |
+1 |
-10 |
-29 |
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 17 September the AUD/USD had risen 1.20 per cent over the week, closing at 0.6748 on Tuesday. The AUD/RMB had also risen, 0.89 per cent, in the period, closing at 4.7892 on Tuesday.
Venture Capital
Stoic Venture Capital
Stoic announced its investment in Neurode. which is working to develop a novel non-invasive headset to improve cognitive performance for people with ADHD.
Stoic made the investment before Neurode’s US$3.5m funding round led by Khosla Ventures and PsyMed Ventures.
Stoic also announced its participation in the Kinoxis Therapeutics’ $14.5M Series B round. The funds raised will advance its lead candidate (KNX100) into Phase 2 clinical trials targeting agitation and aggression in dementia.
Certa Theraputics
Stoic investee Certa Therapeutics announced that its lead candidate, FT011, has been granted the International Non-Proprietary Name (INN) of ‘Asengeprast’ by the World Health Organisation. This isanother important step in the development of this therapy and follows the granting of EU and US Orphan Drug status and an FDA Fast Track Designation.
Lenexa Medical
Stoic investee Lenexa Medical shared that it is working with Bupa as a finalist in the eco-Disruptive 2024: Healthy Societies global talent and innovation program. This program is designed to give startups a platform to make a difference in healthcare. Lenexa is working with Bupa and the Proactive Protectors team in the ‘Illness Prevention’ stream to break down barriers to accessing quality care.
Morse Micro
Stoic investee Morse Micro has revealed that it is a finalist for Best Wi-Fi Innovation in the 2024 Wireless Broadband Alliance Industry Awards. This is thanks to its certified HaLow SoC and module products which enable wirelessly connected devices to achieve 10x longer range, covering 100x the area or 1000x the volume of traditional Wi-Fi networks.
Wildlife Drones
Stoic investee Wildlife Drones announced that it is a State Finalist in three categories for the Telstra Business Awards - ACT Promoting Sustainability Award Finalist, ACT Outstanding Growth Award Finalist, ACT Embracing Innovation Award Finalist. These nominations reflect its commitment to sustainability, growth, and innovative solutions that are reshaping wildlife monitoring and conservation.
Property
In property news this week, the national auction clearance rate fell to 69.4 per cent, down from 71.7 per cent a week ago. This was in the context of total auction listings which rose 13 per cent to almost 2400.
Commentators suggested that this fall in the clearance rate will swing bargaining power in favour of buyers for the rest of the calendar year – it is apparently widely accepted that buyers have the power when clearance rates dip below 65 per cent, and as such serious vendors will have to temper their price expectations to get a sale before Christmas.
