Tourism stocks have been on a one-way trip down. Is it time to buy?
Now – as the uncertainty recedes, somewhat – big investors are scouring the sector hoping to find a bargain. Locally listed travel businesses are also being helped by a surprisingly enduring boom in tourism. Figures published by the Australian Bureau of Statistics show a 20.1 per cent increase in the number of short trips taken in May compared to the same time last year.
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The Advertiser
7 hours ago
- The Advertiser
No agreement on international rules for deep sea mining
Delegates from around the world could not agree on a set of rules for deep sea mining at a council meeting of the International Seabed Authority (ISA) in Kingston. Environmental organisations such as Greenpeace see the failure to agree on a "mining code" as a success for the protection of oceans. "The ISA has shown backbone - and stood up to the deep-sea mining industry and governments such as the US under (President Donald) Trump," Greenpeace marine biologist Franziska Saalmann said. There is still no globally accepted set of rules for deep sea mining, in which so-called manganese nodules in particular are mined on the bed of the high seas, in international waters. Many countries and environmental organisations are calling for a moratorium in view of the risks to the barely explored ecosystems. The annual meeting of the ISA Assembly also started in Kingston on Monday and will run until July 25. All states parties to the United Nations Convention on the Law of the Sea are automatically members of the ISA Assembly, which comprises 169 states and the European Union. The assembly's focus will be on fundamental issues relating to the protection of the sea. Observers such as environmental organisations and expert bodies are also participating. It is important to make it clear "that the deep sea is not a legal vacuum for industrial fantasies, but a global natural heritage that deserves protection," Saalmann said. In March, an initiative by Canadian company The Metals Company (TMC) came under fire. The company wants to obtain permission to mine in international waters through a partnership with the United States, which is not a UNCLOS signatory. Many states see this as an attempt to circumvent the ISA. TMC is planning to mine raw materials in the Clarion-Clipperton Zone in the eastern Pacific, where large quantities of manganese nodules containing nickel, cobalt and copper lie on the seabed. The metals are valuable for manufacturing products such as batteries for electric cars. The ISA has launched an investigation into the company. Delegates from around the world could not agree on a set of rules for deep sea mining at a council meeting of the International Seabed Authority (ISA) in Kingston. Environmental organisations such as Greenpeace see the failure to agree on a "mining code" as a success for the protection of oceans. "The ISA has shown backbone - and stood up to the deep-sea mining industry and governments such as the US under (President Donald) Trump," Greenpeace marine biologist Franziska Saalmann said. There is still no globally accepted set of rules for deep sea mining, in which so-called manganese nodules in particular are mined on the bed of the high seas, in international waters. Many countries and environmental organisations are calling for a moratorium in view of the risks to the barely explored ecosystems. The annual meeting of the ISA Assembly also started in Kingston on Monday and will run until July 25. All states parties to the United Nations Convention on the Law of the Sea are automatically members of the ISA Assembly, which comprises 169 states and the European Union. The assembly's focus will be on fundamental issues relating to the protection of the sea. Observers such as environmental organisations and expert bodies are also participating. It is important to make it clear "that the deep sea is not a legal vacuum for industrial fantasies, but a global natural heritage that deserves protection," Saalmann said. In March, an initiative by Canadian company The Metals Company (TMC) came under fire. The company wants to obtain permission to mine in international waters through a partnership with the United States, which is not a UNCLOS signatory. Many states see this as an attempt to circumvent the ISA. TMC is planning to mine raw materials in the Clarion-Clipperton Zone in the eastern Pacific, where large quantities of manganese nodules containing nickel, cobalt and copper lie on the seabed. The metals are valuable for manufacturing products such as batteries for electric cars. The ISA has launched an investigation into the company. Delegates from around the world could not agree on a set of rules for deep sea mining at a council meeting of the International Seabed Authority (ISA) in Kingston. Environmental organisations such as Greenpeace see the failure to agree on a "mining code" as a success for the protection of oceans. "The ISA has shown backbone - and stood up to the deep-sea mining industry and governments such as the US under (President Donald) Trump," Greenpeace marine biologist Franziska Saalmann said. There is still no globally accepted set of rules for deep sea mining, in which so-called manganese nodules in particular are mined on the bed of the high seas, in international waters. Many countries and environmental organisations are calling for a moratorium in view of the risks to the barely explored ecosystems. The annual meeting of the ISA Assembly also started in Kingston on Monday and will run until July 25. All states parties to the United Nations Convention on the Law of the Sea are automatically members of the ISA Assembly, which comprises 169 states and the European Union. The assembly's focus will be on fundamental issues relating to the protection of the sea. Observers such as environmental organisations and expert bodies are also participating. It is important to make it clear "that the deep sea is not a legal vacuum for industrial fantasies, but a global natural heritage that deserves protection," Saalmann said. In March, an initiative by Canadian company The Metals Company (TMC) came under fire. The company wants to obtain permission to mine in international waters through a partnership with the United States, which is not a UNCLOS signatory. Many states see this as an attempt to circumvent the ISA. TMC is planning to mine raw materials in the Clarion-Clipperton Zone in the eastern Pacific, where large quantities of manganese nodules containing nickel, cobalt and copper lie on the seabed. The metals are valuable for manufacturing products such as batteries for electric cars. The ISA has launched an investigation into the company. Delegates from around the world could not agree on a set of rules for deep sea mining at a council meeting of the International Seabed Authority (ISA) in Kingston. Environmental organisations such as Greenpeace see the failure to agree on a "mining code" as a success for the protection of oceans. "The ISA has shown backbone - and stood up to the deep-sea mining industry and governments such as the US under (President Donald) Trump," Greenpeace marine biologist Franziska Saalmann said. There is still no globally accepted set of rules for deep sea mining, in which so-called manganese nodules in particular are mined on the bed of the high seas, in international waters. Many countries and environmental organisations are calling for a moratorium in view of the risks to the barely explored ecosystems. The annual meeting of the ISA Assembly also started in Kingston on Monday and will run until July 25. All states parties to the United Nations Convention on the Law of the Sea are automatically members of the ISA Assembly, which comprises 169 states and the European Union. The assembly's focus will be on fundamental issues relating to the protection of the sea. Observers such as environmental organisations and expert bodies are also participating. It is important to make it clear "that the deep sea is not a legal vacuum for industrial fantasies, but a global natural heritage that deserves protection," Saalmann said. In March, an initiative by Canadian company The Metals Company (TMC) came under fire. The company wants to obtain permission to mine in international waters through a partnership with the United States, which is not a UNCLOS signatory. Many states see this as an attempt to circumvent the ISA. TMC is planning to mine raw materials in the Clarion-Clipperton Zone in the eastern Pacific, where large quantities of manganese nodules containing nickel, cobalt and copper lie on the seabed. The metals are valuable for manufacturing products such as batteries for electric cars. The ISA has launched an investigation into the company.
Perth Now
8 hours ago
- Perth Now
No agreement on international rules for deep sea mining
Delegates from around the world could not agree on a set of rules for deep sea mining at a council meeting of the International Seabed Authority (ISA) in Kingston. Environmental organisations such as Greenpeace see the failure to agree on a "mining code" as a success for the protection of oceans. "The ISA has shown backbone - and stood up to the deep-sea mining industry and governments such as the US under (President Donald) Trump," Greenpeace marine biologist Franziska Saalmann said. There is still no globally accepted set of rules for deep sea mining, in which so-called manganese nodules in particular are mined on the bed of the high seas, in international waters. Many countries and environmental organisations are calling for a moratorium in view of the risks to the barely explored ecosystems. The annual meeting of the ISA Assembly also started in Kingston on Monday and will run until July 25. All states parties to the United Nations Convention on the Law of the Sea are automatically members of the ISA Assembly, which comprises 169 states and the European Union. The assembly's focus will be on fundamental issues relating to the protection of the sea. Observers such as environmental organisations and expert bodies are also participating. It is important to make it clear "that the deep sea is not a legal vacuum for industrial fantasies, but a global natural heritage that deserves protection," Saalmann said. In March, an initiative by Canadian company The Metals Company (TMC) came under fire. The company wants to obtain permission to mine in international waters through a partnership with the United States, which is not a UNCLOS signatory. Many states see this as an attempt to circumvent the ISA. TMC is planning to mine raw materials in the Clarion-Clipperton Zone in the eastern Pacific, where large quantities of manganese nodules containing nickel, cobalt and copper lie on the seabed. The metals are valuable for manufacturing products such as batteries for electric cars. The ISA has launched an investigation into the company.
The Advertiser
11 hours ago
- The Advertiser
Were the RBA dissenters right to argue for a July cut?
The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed. The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent. Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher. A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again. "Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found. The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted. "The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said. "Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth." But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise. The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia". "That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said. Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate. "Members noted that these factors might imply that supply and demand in the labour market were closer to balance." Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage. Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May. Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed. The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent. Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher. A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again. "Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found. The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted. "The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said. "Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth." But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise. The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia". "That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said. Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate. "Members noted that these factors might imply that supply and demand in the labour market were closer to balance." Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage. Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May. Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed. The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent. Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher. A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again. "Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found. The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted. "The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said. "Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth." But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise. The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia". "That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said. Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate. "Members noted that these factors might imply that supply and demand in the labour market were closer to balance." Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage. Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May. Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank of Australia was blindsided by a surprise jump in unemployment, a read-out of its shock rates-hold meeting has revealed. The central bank on Tuesday released minutes from the monetary policy board's last meeting on July 7-8, when it defied the expectations of traders and economists to leave the cash rate unchanged at 3.85 per cent. Although inflation had eased faster than expected, the board was still concerned that Australia's relatively tight labour market could push wage costs and prices higher. A majority of six board members judged it was more prudent to leave rates on hold and wait for additional data - including jobless figures - ahead of the August meeting, to confirm inflation was sustainably returning to target before moving lower again. "Lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner," the board found. The unemployment rate was 4.1 per cent in May, barely changed from a year earlier, while other indicators such as high job vacancies pointed to little movement in the near term, the board noted. "The staff still assessed that labour market conditions were tight, though with a considerable degree of uncertainty," the minutes said. "Growth in unit labour costs - a comprehensive, though volatile, measure of labour costs - remained high, mostly because of persistently weak productivity growth." But the board's judgment that the labour market remained tight was challenged last Thursday when the Australian Bureau of Statistics revealed the unemployment rate jumped to 4.3 per cent in June, taking the market and seemingly the RBA by surprise. The data bolstered the case of a dissenting rump of three board members, who argued that a rate cut was warranted because of greater downside risks to the economy "from a likely slowing in growth abroad and from the subdued pace of GDP growth in Australia". "That in turn posed a risk that underlying inflation would moderate somewhat more rapidly than envisaged in the May projections," the minutes said. Board members also noted data was increasingly showing workers were changing jobs less often, suggesting it was becoming easier for employers to attract and retain staff, and that wage growth was continuing to moderate. "Members noted that these factors might imply that supply and demand in the labour market were closer to balance." Interest rate markets have almost fully priced in a 25 basis point cut to the official cash rate at the August meeting, and project it will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave about $90 off monthly repayments on a $600,000 mortgage. Another factor behind the board's decision not to cut in July was the bank's assessment that the threats to the Australian economy from Donald Trump's tariffs had eased somewhat since the previous meeting in May. Recent international developments had had "little discernible effect" on the Australian economy, although available indicators for the June quarter suggested that growth in household consumption had been slightly below the bank's expectations. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
