Latest news with #Betashares
Business Times
a day ago
- Business
- Business Times
Indonesia's Kangaroo bond sale a tricky call for local investors
Indonesia's plan to issue its first Australian dollar-denominated debt next month has piqued investor interest, though questions mount on how it'll fit into local managers' portfolios. Australia's sovereign Kangaroo market isn't large and Indonesia's issuance is not aligned with the more well known supranational debt from developed markets, according to Betashares Capital. Funds may also be unable to hold the bonds due to Indonesia's low investment grade credit rating, according to Jamieson Coote Bonds. 'An EM (emerging market) kangaroo bond doesn't exactly fit neatly into the traditional Australian bond sectors,' said Chamath de Silva, head of fixed income at Betashares in Sydney, who may buy the bond if it gets included in major indexes. 'That said, if the concession is attractive, I'm sure local real money might be tempted.' It points to a tricky debt sale should Indonesia follow through on its plan as it seeks to diversify funding sources and deepen ties with Canberra. It would be just the second emerging-market sovereign to issue Australian dollar debt in a market that typically sees developed issuers such as the Canadian provinces and supranationals such as the European Investment Bank. The planned issuance comes as Kangaroo market sales hit A$41 billion (S$34.3 billion) this year, on track to top a record A$61 billion worth of deals last year, according to data compiled by Bloomberg. It follows South Korea issuing an Australian-dollar bond last year. The issuance is likely to be targeted at sovereign wealth funds and reserve managers rather than Australian funds given that liquidity may be low, said Prashant Newnaha, a senior Asia-pacific rates strategist at TD Securities in Singapore. But 'it's clear there is a significant pool of Australian dollars to tap', he said. While Indonesia's planned offer is interesting, it would not meet the rating requirement of a number of our portfolios, said James Wilson, a senior portfolio manager at Jamieson Coote in Melbourne. The South-east Asian nation is ranked Baa2 at Moody's Ratings, the second-lowest investment grade. BLOOMBERG
News.com.au
5 days ago
- Business
- News.com.au
ASX soars as expectations of rate cut on spike in unemployment
Australia's sharemarket closed at a record high for the second time in four trading days after weaker than expected jobs figures renewed hopes of an August rate cut. The benchmark ASX 200 jumped 77.20 points or 0.90 per cent to 8,639. The broader All Ordinaries also had a strong day up 74.40 points or 0.84 per cent to close Thursday's trading at 8,890.80. The Aussie dollar slumped 0.87 per cent and is now buying 64.64 US cents at the time of writing. Australia's markets immediately responded to the ABS announcement of a jump in the unemployment rate, with bond traders pricing in a 98 per cent chance of a rate cut. The unemployment rate rose to 4.3 per cent last month against expectations of holding flat at 4.1 per cent. With expectations of lower rates, the Australian dollar slumped back below 65 US cents, while Australia's sharemarket jumped on the news. AMP economist My Bui told NewsWire the fall in the Australian dollar followed the market pricing in a more definite rate cut by the RBA. It was a sea of green on the markets, with all 11 sectors finishing higher, led by industrials, financials and technology stocks. 'We continue to see the jobs market as being weaker than the (figures suggests),' Ms Bui said. 'Yes the unemployment rate seems quite low but this month we've seen weakening in multiple measures, including leading indicators in the job market which I think the RBA will pay attention to.' Betashares chief economist David Bassanese said the weaker than expected job figures were a 'slum dunk' for rate cuts in June. 'We'll need more consistent signs of weakness in both employment and hiring indicators before we can conclude the labour market is turning,' he said. 'That said, today's result clearly adds to the case for a RBA rate cut at the August policy meeting provided next week's Q2 CPI report is not a shocker.' Market heavyweight CBA jumped 1.82 per cent to $180.80, while NAB gained 1.12 per cent to $38.70, Westpac finished 1.20 per cent higher at $33.70 and ANZ climbed 1.10 per cent to $30.45. Tech stocks also rose with Xero jumping 1.71 per cent to $179.13, Life360 finished 1.10 per cent higher to $35.80 and Codan jumped 3.13 per cent to $19.75. Iron ore miners had a mixed day despite the price of the commodity rising to a two-month high, surpassing $US100 a tonne during the day's trading. BHP closed flat at $39.11, Fortescue gained 0.30 per cent to $16.91 and Rio Tinto gained 0.52 per cent to $7.48. In company news shares in Clarity Pharmaceuticals rose 2.05 per cent to $3.48 after announcing an important milestone in the Co-PSMA trials. Shares in superannuation and fund management business Australian Ethical soared 7.40 per cent to $6.68 after releasing its fourth quarter and full yearly update. The ethically based fund said there was a 34 per cent increase in funds under management to $13.94bn. The fight for ASX listed wagering business Pointsbet continued with Mixi formally lodging a second takeover bid and Betr announcing an unsolicited all-scrip takeover on Wednesday after the market closed. Shares in Pointsbet closed flat. Qantas shares also finished in the green up 0.55 per cent to $11.04 after it secured a Supreme Court injunction to stop stolen data being published by anyone, a few weeks after cybercriminals gained access to the airlines systems and stole 5.7 million customers personal details.
News.com.au
08-07-2025
- Business
- News.com.au
‘Case not established': Shock blow as RBA keeps rates on hold in July meeting
Australian households will have to wait a little longer for more mortgage relief, with slowing inflation and weak retail sales not enough to sway the central bank that the fight against cost of living is over. A cautious RBA has held the official cash rate at 3.85 per cent following its July meeting, with the shock move defying expert commentators and the money markets predictions. Prior to Tuesday's announcement, the money market had placed a 92 per cent chance on a rate cut off the back of weaker than expected economic data. Mortgage holders will now have to wait until August at the earliest to get further interest rate relief. Tuesday's annoucement follows a rate cut in May, with the central bank opting against back-to-back movements in the official cash rate. Ahead of the announcement, Betashare chief economist David Bassanese said the 'case for a rate cut had not been established.' 'Although May trimmed mean annual inflation dropped to 2.4 per cent, this followed a solid 2.8 per cent gain in April - and there's every risk it could bounce back again in the more comprehensive and reliable June quarter CPI report later this month,' he said. 'Prudence suggests the RBA should and would await confirmation of lower inflation in the quarterly CPI report before cutting again in August - despite the market pricing a rate cut next week with near certainty.' But he conceded last Wednesday's retail data gave the RBA a yellow light when it comes to making a rate call. 'Accordingly, although retail sales rose a weaker than expected 0.2 per cent in May, it does not necessarily give the green light to the RBA to cut interest rates next week,' he said.
The Age
07-07-2025
- Business
- The Age
Australian News LIVE: Inside the mushroom murderer court case, new Trump tariffs; rate cut decision looms
Latest posts Latest posts 6.56am Alex de Minaur's Wimbledon campaign ends in disappointment By Marc McGowan Australia's hopes of a Wimbledon win have been toppled after Australian Alex de Minaur's loss to Novak Djokovic. With Roger Federer watching from the royal box, Australia's perennially underestimated tennis torchbearer returned to Wimbledon's centre court for the showdown he was supposed to have 12 months ago – and fell agonisingly short. Read how it played out here. 6.47am Are rate cuts coming? Australia awaits RBA decision By Millie Muroi and Shane Wright All eyes will be on the Reserve Bank this afternoon with RBA governor Michele Bullock expected to deliver its fastest cut in interest rates since the early days of the COVID-19 pandemic. On a $600,000 mortgage, a rate cut on Tuesday would be worth $100 a month and take to $300 the monthly savings since the Reserve Bank started easing monetary policy in February. However, not all economists are convinced the RBA will cut rates on Tuesday. Betashares chief economist David Bassanese said the bank could wait until the next quarter inflation report, due to be released at the end of the month, to get a better handle on how the economy was performing. Read our full story here. 6.38am This morning's top stories at a glance By Emily Kowal Good morning and welcome to today's national news blog. My name is Emily Kowal, and I will be taking you through today's top stories. It's Tuesday, July 8. Here's what is making news this morning. It's the case that gripped the world and now Erin Patterson has spent her first night behind bars after she was found guilty in the mushroom murder case. Our reporters take you inside the evidence we couldn't publish during the trial, including the moment Erin Patterson lost her cool, and where the unlikely murder weapon was found. In the United States, US President Donald Trump has unveiled a raft of new 25 per cent tariffs. Find out which countries are impacted here. It's (likely) rate cut day, with the Reserve Bank poised to deliver its fastest cut in interest rates since the early days of the COVID-19 pandemic. NSW Police will drop some of the charges laid against former Greens candidate Hannah Thomas after a review found officers incorrectly sought to use extraordinary emergency powers introduced to quell major riots.
Sydney Morning Herald
07-07-2025
- Business
- Sydney Morning Herald
Australian News LIVE: Inside the mushroom murderer court case, new Trump tariffs; rate cut decision looms
Latest posts Latest posts 6.56am Alex de Minaur's Wimbledon campaign ends in disappointment By Marc McGowan Australia's hopes of a Wimbledon win have been toppled after Australian Alex de Minaur's loss to Novak Djokovic. With Roger Federer watching from the royal box, Australia's perennially underestimated tennis torchbearer returned to Wimbledon's centre court for the showdown he was supposed to have 12 months ago – and fell agonisingly short. Read how it played out here. 6.47am Are rate cuts coming? Australia awaits RBA decision By Millie Muroi and Shane Wright All eyes will be on the Reserve Bank this afternoon with RBA governor Michele Bullock expected to deliver its fastest cut in interest rates since the early days of the COVID-19 pandemic. On a $600,000 mortgage, a rate cut on Tuesday would be worth $100 a month and take to $300 the monthly savings since the Reserve Bank started easing monetary policy in February. However, not all economists are convinced the RBA will cut rates on Tuesday. Betashares chief economist David Bassanese said the bank could wait until the next quarter inflation report, due to be released at the end of the month, to get a better handle on how the economy was performing. Read our full story here. 6.38am This morning's top stories at a glance By Emily Kowal Good morning and welcome to today's national news blog. My name is Emily Kowal, and I will be taking you through today's top stories. It's Tuesday, July 8. Here's what is making news this morning. It's the case that gripped the world and now Erin Patterson has spent her first night behind bars after she was found guilty in the mushroom murder case. Our reporters take you inside the evidence we couldn't publish during the trial, including the moment Erin Patterson lost her cool, and where the unlikely murder weapon was found. In the United States, US President Donald Trump has unveiled a raft of new 25 per cent tariffs. Find out which countries are impacted here. It's (likely) rate cut day, with the Reserve Bank poised to deliver its fastest cut in interest rates since the early days of the COVID-19 pandemic. NSW Police will drop some of the charges laid against former Greens candidate Hannah Thomas after a review found officers incorrectly sought to use extraordinary emergency powers introduced to quell major riots.
