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Why the RBA held rates

Why the RBA held rates

Mortgage-borrowers across the country have been left shell-shocked by the RBA's decision to keep the cash rate steady at 3.85 per cent. Treasurer Jim Chalmers says "it's not the result millions of Australians were hoping for."
But while the Government has been at pains to stress the RBA makes decisions independently, with global instability continuing, is this a sign there are more rough economic waters ahead of us?
Patricia Karvelas and Tom Crowley break it all down on Politics Now.
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Got a burning political query? Send a short voice recording to PK and Fran for Question Time at thepartyroom@abc.net.au
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Coalition demands answers after Albanese government lifts biosecurity restrictions on US beef imports
Coalition demands answers after Albanese government lifts biosecurity restrictions on US beef imports

Sky News AU

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Coalition demands answers after Albanese government lifts biosecurity restrictions on US beef imports

The Albanese government is being urged to explain its backflip on a US beef ban after the Prime Minister previously insisted Labor would not 'compromise' on biosecurity. The Australian Financial Review revealed on Thursday that Australian officials had notified their US counterparts that restrictions on the importation of US beef will be lifted following a scientific review of the biosecurity risks. Responding to the reports on Thursday, Nationals Senate Leader Bridget McKenzie said the decision could pose a risk to our beef industry. 'We need to make sure our $11 billion beef export industry is protected. Our concerns would be any watering down of those science-based protocols would lead the risk of disease, entering this country, and our farmers, being subjected to unnecessary risk,' Ms McKenzie said. Shadow finance minister James Paterson said the government needed to explain its backflip. 'The prime minister himself has said that we couldn't relax the restrictions on the importation of US beef because of serious biosecurity concerns," Mr Paterson told Sky News. "So if the government has found some way of dealing with that issue, protecting our domestic agricultural industry from the introduction of foreign diseases and pests, then they should say so they should stand up and explain that, not anonymously leak it to a newspaper. 'Full credit to the AFR for getting the story, but a major story like this affecting a major export industry of about $11 billion a year and about an $82 billion domestic industry, when you include red meat more broadly, deserves more answers than this.' The restrictions had been cited by President Donald Trump as a justification for his decision to impose a 10 per cent across the board tariff on Australian imports – as well as much larger tariffs on steel and aluminium – in violation of the existing Australia-US free trade agreement. 'Australia bans – and they're wonderful people, and wonderful everything – but they ban American beef,' President Trump said in April In response to the comments, Prime Minister Albanese emphatically declared his government 'will not change or compromise any of the issues regarding biosecurity, full stop, exclamation mark, it's simply not worth it. So it's that simple.' A blanket ban on US beef imports - imposed following a mad cow disease in 2003 - was repealed in 2019. However biosecurity rules have remained in place due to the risk of beef from countries such as Mexico and Canada being imported through the US, and no American beef has been imported under the new scheme. But a government source told the AFR on Thursday that the US Beef Imports Review had undertaken a 'rigorous science and risk-based assessment over the past decade' and the bans would be lifted. Agriculture Minister Julie Collins confirmed the report, saying in a statement that her department was "satisfied the strengthened control measures put in place by the US effectively manage biosecurity risks.' However Cattle Australia CEO Will Evans said he was sure the decision would not have been made unless scientific experts had the 'utmost confidence' it would not impose a risk to Australia's cattle industry. 'Context is important here. We export more than $4 billion of beef a year to the US, and this has been a multi-year assessment process undertaken by the Department of Agriculture - they're the competent authority in this, and they're required to assess this under a rules based trading system. 'What they've done is they've completed a technical scientific assessment, and they've said, look, there are the right processes in place in these countries to be able to manage these risks, and they've determined that they're going to grant access after making this assessment over many years. 'Now, the cattle industry is a $75 billion industry in Australia. I'm sure they wouldn't have made this decision unless they had the utmost confidence that the science was correct.'

Tesla under ‘heavy scrutiny' by investors and analysts ahead of earnings call
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Tesla under ‘heavy scrutiny' by investors and analysts ahead of earnings call

Tesla will report its second-quarter earnings on Wednesday evening (United States time), with investors and analysts watching closely. The electric vehicle giant's expected revenue is to come in at USD 22.7 billion, down 11 per cent from the same quarter last year. It's also experienced a decline in global deliveries, down 13.5 per cent year-on-year to 384,122 vehicles, which marks the third consecutive quarter of decline and the lowest volume recorded in more than a year. The company's share price has fallen 18 per cent since the beginning of the year and is now trading 35 per cent below its December 2024 peak. eToro market analyst Josh Gilbert said the result from the earnings call is unlikely to satisfy investors. 'Even if Tesla delivers a solid set of numbers, it's unlikely to escape heavy scrutiny when it reports earnings on Wednesday, US time,' he said. Gilbert said Musk's latest developments in AI and cost-cutting might provide some relief in the short term, but 'expectations are low'. Tesla's product has remained flat year-on-year at 410,244 vehicles, which has raised concerns about demand. On top of slowing demand, the Cybertruck has not been as successful as investors hoped. 'The Cybertruck has also been arguably somewhat of a flop so far, with a third consecutive quarter of falling sales now hitting their lowest point in a year,' Josh Gilbert said. Regardless, Tesla remains a dominant force in the global electric vehicle market. However, its success has not been without challenges. Tesla CEO Elon Musk's growing interest in politics has drawn criticism from major investors. He previously promised to distance himself from politics but has since announced plans for his political party in the United States, a terrible move according to Gilbert. 'Elon's position as a Tony Stark-like personality at the head of the company was a boon for a long time, but it's hard to argue that his prominence isn't having some detrimental effect on the brand,' he said. 'The Tesla CEO made a broad commitment to step away from politics after his controversial time with DOGE. 'Musk has previously been criticised as being absent as Tesla's CEO, so these renewed political aspirations are unlikely to please investors who were hoping for a steadier hand at the helm of Tesla.' Adding to investor worry is Musk's attempt to channel Tesla cash reserved into his private artificial intelligence venture xAI, a move that needs to be approved by investors first, according to Gilbert. 'This will require Tesla investor approval, and even if there is a theoretical future benefit for Tesla in doing so, it's going to be a very hard case to make,' he said. Despite these pressures, Gilbert said its continued development in autonomous driving, specifically the Robotaxi program, will eventually pay off. 'That's worth watching closely, although any meaningful contribution to revenue is still years away,' he said. He added that Tesla is a 'household name' and 'even amid the chaos of Musk', it maintains its strong position in the EV market. 'That's why it maintains its position as the second most-held stock on the eToro platform in Australia, and why so many shareholders back it as a long-term investment,' he said. 'Markets expect EPS of USD$0.44 with revenue of USD$22.8 billion.'

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