The Australian share market has ended higher, with investors hoping that a pullback in consumer inflation in North America will see the US central bank start to slow the pace of its interest rate increases when it concludes this week's meeting tomorrow.
See how the trading day unfolded on our markets blog.
Disclaimer: this blog is not intended as investment advice.
Key events
To leave a comment on the blog, please log in or sign up for an ABC account.
Live updates
ASX and US stocks gain after inflation eases in North America thanks to interest rate rises
By Sue Lannin
Investors are hoping the weaker inflation in the US will see the US central bank slow down the pace of its interest rate hikes.
Market snapshot at 4:20pm AEDT
- All Ordinaries up 0.7 per cent to 7,439, ASX 200 up 0.7 per cent to 7,251
- Australian dollar down 0.2 per cent to 68.40 US cents
- Bitcoin up 0.2 per cent to $US17,785.95
- Dow Jones up 0.3 per cent to 34,109, S&P 500 up 0.7 per cent to 4,020, Nasdaq Composite up 1 per cent to 11,256
- FTSE 100 up 0.8 per cent to 7,503, DAX up 1.3 per cent to 14,498, CAC 40 up 1.4 per cent to 6,745
- Brent crude down 0.2 per cent to $US80.49 a barrel, spot gold down 0.1 per cent to $US1809.23 an ounce, iron ore down 1.1 per cent to $US108.20
That's a wrap
By Sue Lannin
Thanks for joining me today on the ABC Markets Blog.
Finance nerds like us will be watching the Federal Reserve's rates announcement in the early hours of tomorrow morning and the press conference by Fed chair Jerome Powell.
The Bank of England and the European Central Bank are also expected to raise official rates tomorrow evening (Friday morning local time) with the market expecting a 0.5 percentage point rise for both central banks.
The other big news tomorrow will be Australia's latest jobless figures.
Economists surveyed by Reuters expect the unemployment rate to remain steady at 3.4 per cent in November.
Bye for now!
Only one in eight workers are union members
By Sue Lannin
This is a really interesting graph from the Australian Bureau pf Statistics which goes some way to explaining why wage growth has been in the slow lane for so long (aside from recently because of staff shortages).
Just 12.3 per cent of workers belong to a trade union. That's just 1.4 million people and is down from 41 per cent of employees three decades ago.
Lower union membership reduces the collective bargaining power of workers.
More women than men are union members with the highest proportion of unionists in the education and training industry.
The ABS also says that one in every thirty jobs was vacant over the September quarter with the accommodation and food services industry the worst hit by worker shortages.
ASX ends higher after weaker US inflation numbers raised hopes the Fed will pull back on the rate increases
By Sue Lannin
The Australian share market followed a strong lead from Wall Street after consumer prices in North America rose by just 0.1 per cent in November, and eased back to 7.1 per cent from a year ago.
The All Ordinaries rose 0.7 per cent to 7,439, while the ASX 200 index gained 0.7 per cent as well to 7,251.
All sectors increased on the ASX 200 with the gains led by industrial and utility firms, energy stocks on higher prices, real estate stocks and miners.
Gold miner St Barbara (+13.9 per cent) did the best on the benchmark index, while biotech Imugene (-5.1 per cent).
The Australian dollar eased off from its big surge overnight to 68.40 US cents.
Investors are betting that the US central bank will raise official interest rates overnight by 0.5 percentage points, which would be a slow down in the pace of rate hikes.
Tobacco companies under fire as New Zealand bans young people from buying cigarettes
By Sue Lannin
If you still invest in tobacco stocks then this story is food for thought.
New Zealand is bringing in a ban on tobacco sales to people born in 2009 or after.
"There is no good reason to allow a product to be sold that kills half the people that use it," Associate Minister of Health Ayesha Verrall said in parliament.
"And I can tell you that we will end this in the future, as we pass this legislation.
Have a read of this ABC News story.
Japan closely watching Australia's energy market intervention
By Sue Lannin
Japan is the latest player to add its voice to the debate about the Commonwealth's plan to cap coal and gas prices amid anxiety about energy security in Asia.
The Japanese embassy says it is closely watching Australia's energy market intervention plans.
"We are following the current process within Australia with great interest," a spokesman said.
"Close to 40 per cent of gas and 60 per cent of coal imported by Japan comes from Australia, which underscores the overwhelming impact on the Japanese economy and the well being of the Japanese people."
The federal government is set to introduce legislation into a special sitting of parliament tomorrow.
Energy Minister Chris Bowen says the bill will pass with the support of the Greens after the government agreed to provide relief for households in next year's budget.
Here's the ABC's energy reporter Dan Mercer.
FTX administrator John Ray burns SBF before Congress
By Sue Lannin
So former FTX co-founder Sam Bankman-Fried had his bail application rejected overnight by judge in the Bahamas.
That comes as the US seeks his extradition to face fraud, conspiracy and money laundering charges relating to the collapse of FTX.
We also heard overnight from the FTX administrator and chief executive John J Ray III who testified about the collapse to the US House of Representatives Financial Services Committee, which SBF couldn't attend because he got arrested.
Mr Ray told lawmakers says the corporate failure was a "paperless bankruptcy" fueled by an "unprecedented lack of documentation" with expenses approved by emoji.
Read this excellent article by my colleague Michael Janda about the FTX mess and John Ray's damning assessment.
Westpac watching impact of higher interest rates on customers
By Sue Lannin
Big bank Westpac held its annual general meeting today and to the relief of executives, it did not get a "second strike", which would have forced a board spill.
Last year more than one third of investors voted against the company's executive pay plans, which is known as a "first strike", because of the bank's sliding share price, write downs and lending to the resources industry.
Instead the focus was on - you guessed it- interest rates.
Westpac chief executive Peter King warned of tough times ahead for some customers because of higher borrowing costs.
"There is no doubt that tighter monetary policy and slowing economic growth will impact some customers in the year ahead."
"We expect the combination of rising interest rates and the increase in the cost of living to be felt more fully by consumers and businesses after Christmas."
Westpac also said it has invested heavily in cyber controls for many years by upgrading systems, capabilities and expertise, including by blocking 94,000 phone numbers from being used by scammers to impersonate bank staff.
Meanwhile, Westpac chairman John McFarlane plans to step down next year, and director Peter Marriott will also retire from the board after completing three terms of service.
Market movers at midday
By Sue Lannin
Australian shares are holding up at midday on hopes of lower rate rises by the US Federal Reserve.
9 out of the 11 sectors on the ASX 200 are rising today led by industrials, energy stocks, utilities and real estate.
Going down are financials and some consumer firms.
Telecoms group TPG hit by data hack
By Sue Lannin
Oh no. The bad news for Australian consumers and businesses over cyber security keeps coming.
Following on from the cyber attacks on telecoms giant Optus and health insurer Medibank, now telecommunications firm TPG Telcom says the personal details of some business customers have been exposed.
TPG told the stock exchange there's been "unauthorised access" to an exchange service which host emails for business customers.
TPG said its cyber security adviser Mandiant found evidence of unauthorised access yesterday on a hosted exchange service which provides email accounts for up to 15,000 iiNet and Westnet business customers.
The company says the hackers were looking for financial and cryptocurrency information.
"We apologise unreservedly to the affected iiNet and Westnet Hosted Exchange business customers."
"We have implemented measures to stop the unauthorised access, further security measures have been put in place, and we are in the process of contacting all affected customers."
TPG says home and personal customers with iiNet or Westnet products, including broadband and mobile, have not been affected.
Telstra also experienced a data hack in October which exposed the details of around 30,000 current and former employees dating back to 2017.
As more and more Australian firms, governments and charities are targeted here's Jessica Riga on how you can protect yourself online.
Woolworths reduces stake in Endeavour Group
By Sue Lannin
Supermarket giant Woolworths is selling 5.5 per cent of alcohol giant and hotel owner Endeavour Drinks.
Woolworths says it will make nearly $640 million dollars from the sale to go towards "strategic investments and general corporate purposes."
It will retain a 9.1 per cent stake in Endeavour, which Woolworths spun off last year, partly after pressure from community groups about the impact of pokies and gambling.
Woolworths boss Brad Banducci says the company has "no current intention to undertake a further sell down in the short to medium term."
So not for awhile then.
"Our decision to reduce our stake comes after a successful transition of ownership to partnership with Endeavour Group."
"Endeavour Group remains an important partner of Woolworths Group with a range of long-term partnership agreements in place."
Endeavour owns brand including alcohol retailer Dan Murphy's, BWS, and ALH Hotels.
Endeavour shares lost more than 5 per cent in early trade.
Woolworths shares are up 0.6 per cent.
ASX 200 movers in early trade
By Sue Lannin
Here's whats going on the ASX 200 in the first hour of trade.
Gold miners are go, but TPG Telecom taking a hit after a cyber hack exposed customer data.
ASX higher after Wall Street gains on cool inflation
By Sue Lannin
Australian shares have gained in early trade thanks to weaker inflation in the US.
At 10:25 am AEDT, the ASX 200 index is up 0.4 per cent to 7,229, while the All Ordinaries is up 0.4 per cent as well to 7,415.
Industrials, real estate and energy stocks are driving the market on stronger oil prices. Gold miners have also jumped on a rise in gold prices because of the weaker greenback.
TPG Telecom has lost 4.1 per cent after it said up to 15,000 email accounts of business customers were hacked.
Alcohol retailer Endeavour Group (-4.5 per cent) is weaker after Woolworths sold a stake worth $636 million.
The Australian dollar is buying around 68.43 US cents, off its overnight highs.
Medibank reported to privacy watchdog by class action lawyers
By Sue Lannin
Health insurer Medibank says class action lawyers Maurice Blackburn have notified the company that they've lodged a formal complaint with the privacy commission after 9.7 million customers had their data stolen in a cyber hack.
Medibank said Maurice Blackburn lodged a complaint with the Office of the Australian Information Commissioner.
The complaint includes allegations that Medibank has breached the Australian Privacy Principles and seeks compensation for individuals whose personal information was exposed as a consequence of the crime.
Medibank said it is co-operating with a previously announced investigation by the OAIC.
Sam Bankman-Fried remanded in custody in the Bahamas
By Sue Lannin
Now to some breaking news.
The disgraced co-founder of collapsed crypto currency exchange FTX has been denied bail by a court in the Bahamas according to Reuters.
Bahamas chief magistrate JoyAnn Ferguson-Pratt refused bail for Sam Bankman-Fried, citing a "great" flight risk and remanded him in custody and adjourned the case until February 8 next year.
He has been charged with criminal offences in the US including wire and securities fraud and money laundering in what prosecutors have described as "one of the biggest financial frauds in American history. "
Business reporter Emilia Terzon explains how the once crypto king was arrested in the Bahamas yesterday.
Are we being ripped off by hotel booking websites?
By Sue Lannin
Many of you are heading off on your Christmas holidays and are no doubt looking for a good hotel deal.
But have you ever wondered if those low prices advertised on sites like Booking.com and Trivago are really the cheapest?
Now the Federal Government is going to investigate.
"Checking what rooms are available — anywhere — is wonderfully easy, as is booking, at what usually seems to be the lowest available price."
"But Australia's Assistant Competition Minister Andrew Leigh is concerned there might be a reason the price seems to be the lowest available."
"It might be an agreement not to compete, or the fear of reprisals against hotel owners who offer better prices."
The Conversation's Peter Martin takes a look.
Inflation cools in North America. Over to you Jerome Powell!
By Sue Lannin
The big news overnight was that the cost of living in North America has cooled down after a string of steep interest rate rises by the US central bank.
Consumer prices rose by 0.1 per cent in November and by 7.1 per cent over the year to November.
That was the smallest annual increase in inflation in almost a year.
The cost of petrol, healthcare, and used cars fell, but the cost of housing and food is still rising.
US president Joe Biden also weighed in on the good news.
"Make no mistake, prices are still too high."
"But things are getting better, headed in the right direction."
Now all you avid central bank watchers will know that the Federal Reserve's policy setting committee, the FOMC (Federal Open Markets Committee, is meeting to discuss the next interest rate move.
They will release their decision tomorrow morning local time with official US interest rates currently at 3.75 per cent to 4 per cent.
Recently we heard Fed chair Jerome Powell say that the US central bank could scale back the pace of rate rises by as soon as this month after a string of supersized 0.75 per cent increases.
ANZ economists expect rate rises to slow with a 0.5 percentage point rise tomorrow.
"The latest inflation data from the US shows the rate of inflation is slowing."
"Prices are still rising, just at a slower rate."
"This data endorses the Fed slowing the pace of rate hikes."
Here's this ABC News report via Associated Press and Reuters explaining what happened with US inflation in November.
FTX founder Sam Bankman-Fried vowed to save the world, but now faces years in jail
By Sue Lannin
As we've been talking about this morning, Sam Bankman-Fried, or SBF as he is known, was charged overnight in the US with eight criminal charges including wire fraud, money laundering, and conspiracy to commit fraud on the United States.
He was arrested yesterday by police in the Bahamas where he lives, and the US is seeking his extradition.
"It was a dramatic fall from grace for the youthful entrepreneur, who once claimed that he was on track to become the world's first trillionaire."
"Instead, he'll go down on record as the man who experienced the biggest wealth collapse in US history."
My colleagues Rebecca Armitage and North American correspondent Barbara Miller, have written this great yarn about SBF and the collapse of FTX.
Biggest 'financial frauds in American history': Sam Bankman-Fried charged with wire fraud, money laundering and conspiracy
By Sue Lannin
Disgraced crypto king Sam Bankman-Fried is in hot water.
Yesterday he was arrested by police in Bahamas over the collapse of the world's second biggest crypto currency exchange FTX.
Now US prosecutors have unsealed the criminal charges he faces:
- securities and wire fraud
- conspiracy to commit securities and wire fraud
- money laundering
- conspiracy to avoid US campaign finance regulations
US prosecutors say the maximum prison terms for the charges is 115 years.
US attorney Damian Williams accused Mr Bankman-Fried of making illegal campaign contributions to the US Democratic and Republican parties with "stolen customer money" saying it was one of the biggest "financial frauds in American history."
He said an application to extradite Mr Bankman-Fried to the US was in progress.
Reuters reports that the former FTX chief executive appeared in court in the Bahamas, his first in person public appearance since the collapse of FTX.
A lawyer for Mr Bankman-Fried requested that his client be released on $US250,000 bail, but he's now being sent to jail after the Bahamas chief magistrate denied the bail application.
His lawyer, Mark Cohen, said in an earlier statement that the charges were being reviewed and Mr Bankman-Fried was considering all his legal options.
Mr Bankman-Fried has also been charged by the US corporate regulator, the Securities and Exchange Commission, for allegedly defrauding FTX investors.
The Commodity Futures Trading Commission has also filed civil charges against him.
FTX filed for US bankruptcy protection last month owing creditors billions of dollars.
Also overnight, FTX's administrator and chief executive John J. Ray III has slammed Mr Bankman-Fried and the company before a US Congressional committee.
The former administrator of collapsed energy giant Enron says the demise of FTX is the worst failure of corporate controls he's seen.
"This is really old-fashioned embezzlement."
" This is just taking money from customers and using it for your own purpose. Not sophisticated at all."
Mr Ray also noted the firm used online accounting software QuickBooks to do its accounts, which is very unusual for a multi-billion dollar company.
US stocks boosted by weaker inflation in November
By Sue Lannin
Good morning, ABC business reporter Sue Lannin with you for all your business news today.
This my first market blog so stay tuned for the markets news and the occasional joke!
Wall Street is up in afternoon trade but has come off its highs after US inflation was weaker last month.
The Australian share market looks set to rise today.
Here's a quick snapshot of all the market action overnight at 6.30 am AEDT.
- Dow Jones: up 0.2 per cent to 34,070
- S&P 500: up 0.6 per cent to 4,014
- Nasdaq Composite: up 0.8 per cent to 11,233
- US inflation: up 0.1 per cent in November, up 7.1 per cent over year to November
- ASX SPI 200: up 0.2 per cent to 7,227
- Australian dollar: up 1.6 per cent to 68.52 US cents
- FTSE 100: up 0.8 per cent to 7,503
- DAX: up 1.3 per cent to 14,498
- CAC 40: up 1.4 per cent to 6,745
- Brent crude: up 3.3 per cent to $US80.59 a barrel
- Spot gold: up 1.7 per cent to $US1810.87 an ounce
- Iron ore: down 1.1 per cent to $US108.20
