dailynewsnblog
Key events
Thanks Martin Farrer for kicking off the day, it’s Kat Wong here to take you through today’s news.
Markets fully priced for rate hike
Australia’s resilient labour market continues to be a bright spot in the nation’s economy, Australian Associated Press reports.
But despite the addition of more than 76,000 jobs in June, dark clouds are gathering on the horizon.
After the Australian Bureau of Statistics released another strong labour force report on Thursday, bonds traders ratcheted up expectations that the Reserve Bank will raise interest rates for a fourth time in 2026.
The market is now full priced in for a rate hike by Christmas. A few weeks ago it was a 50-50 bet.
The resurgence in rate fears is not all down to domestic factors.
Renewed hostilities in the Middle East have sent oil prices rising again and threaten to add fresh inflationary pressures to the economy.
While June quarter inflation data next week will be crucial to the RBA’s next rates decision in August, the figures could already be dated by the time they are released.
Brent crude oil prices have risen from $US72 a barrel to more than $US100 a barrel in recent weeks.
As a rule of thumb, each dollar higher the benchmark oil price results in about a cent per litre increase in petrol prices at the bowser.
‘We’ve got other priorities’ over gas taxes, says Chalmers
Luca Ittimani
Jim Chalmers has said the government has “other priorities” over a gas tax despite Labor members’ growing calls for reform.
The government was given the green light from party members and MPs at Labor’s conference on Thursday to extract a “fairer return” from Australia’s natural resources. Anthony Albanese shut down any prospect that would translate into a new gas export tax in the foreseeable future, as you can read here:
Chalmers told the ABC’s 730 on Thursday night:
I think that language in the platform reflected the balance that we have been seeking to strike … I acknowledge that there are people around the country and including people in our movement who would like us to go further. But we did take some important steps in that regard to get a fairer return.
He pointed to his past reforms to the petroleum resource rent tax and the government’s plan to bring in a gas reservation for Australia’s east coast, while noting the government wanted to maintain relationships with countries relying on Australian gas. He said:
The reason why a gas tax has not been on our agenda is because we’ve got other priorities, whether it’s reservation, the PRRT changes I’ve already made, or making sure that we are a reliable international supplier. That’s the government’s focus.
Chalmers says ‘anti-worker’ One Nation and Coalition ‘prey on’ economic insecurity
Luca Ittimani
Jim Chalmers has claimed rightwing political parties will “prey on” voter insecurities about a worsening economy while championing “anti-worker” policies.
The treasurer previewed Labor’s economic attack lines for the next election campaign in an interview from the party’s national conference in Adelaide with 7.30 last night. Chalmers claimed One Nation, the Liberal party and the Nationals did not have plans that would ease the pressure on workers. He said:
We’re actually acting to do something about it … our political opponents, the seek to prey on those pressures and those anxieties that people feel, at the same time as their anti-worker agenda would make things worse rather than better.
Chalmers said real wages had grown for most of the last two and half years, the government had cut taxes “five times in three different ways” and unemployment was low.
But real incomes are set to decline, with high inflation meaning workers are set to have less money left over after they pay for essentials. Asked how he would address declining real wages, Chalmers said:
We’ve done a whole range of things to boost wages in our economy because, deliberately, we believe that one of the best ways to help with these cost-of-living pressures is to make sure that people are paid decent wages. That’s been our [Labor’s] reason for being for more than a hundred years.
You can read about how economic pessimism is helping One Nation here:
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories before your regular blogger takes the reins.
Jim Chalmers has claimed rightwing political parties will “prey on” voter insecurities about a worsening economy while championing “anti-worker” policies. It comes as markets are now expecting another rate hike by the end of the year. He also continues to push back at rank and file Labor members’ calls for a new tax on gas exports, saying the government had “other priorities” for reform. More coming up.
The International Campaign to Abolish Nuclear Weapons Australia has said it is alarmed that Saudi Arabia could use its uranium enrichment deal with the US to build nuclear weapons. More details soon.
