Latest updates on Key Economic Indicators

Aussie $: $0.6521 USD (up $0.0018 USD)

Iron (SGX): $101.10 USD (up $5.60 USD)

Oil (WTI): $72.67 USD (up $0.81 USD)

Gold: $1,946.67 USD (up $6.08 USD)

Copper (CME): $3.6715 (up 0.0800 USD)

Bit-coin: $27,583.04 (up 3.00%)

Dow Jones: 33,093.34 (up 328.69 pts).

All changes compared to 7am Friday, except Bitcoin.

Ukraine War:

Kyiv Attacked:

Explosions shook the Ukrainian capital in the early hours of Sunday.

A 41-year-old man was killed by falling debris of Russian drones being shot out of the air, as the Kremlin launched a 54-strong drone attack on Kyiv.

The death was confirmed by Kyiv’s mayor, Vitali Klitschko, who said a 35-year-old woman was also injured by the fall of the drone’s wreckage in the Solomianskyi district.

Ukraine’s air force said it downed 52 of the 54 drones during the attack, which it said was a “Record” attack by the Iranian-made Shaheds.

Russia Has 'Enormous resources':

The Russian ambassador to the UK, Andrei Kelin, told the UK’s BBC that Russia had “Enormous resources and we haven’t just started yet to act very seriously”.

In an interview he repeated Russia’s line that the jailed Wall Street Journal reporter Evan Gershkovich was a “Spy”.

In response to a question by Vladimir Kara-Murza’s wife, he said it was a decision of the “Courts” rather than government-led oppression that led to Kara-Murza’s 25-year jail term.

Counterattack Pending:

Preliminary operations have begun to pave the way for a counteroffensive against Russian occupying forces, a Ukrainian presidential adviser said.

“It’s a complicated process, which is not a matter of one day or a certain date or a certain hour,” Mykhailo Podolyak said in an interview with the Guardian.

“It’s an ongoing process of deoccupation, and certain processes are already happening, like destroying supply lines or blowing up depots behind the lines.”

The commander of Ukraine’s armed forces, Gen Valerii Zaluzhnyi, raised expectations that a major operation could be imminent, declaring on social media: “The time has come to take back what’s ours.”

Zaluzhnyi’s declaration on the Telegram messaging app on Saturday was accompanied by a cinematic video showing heavily armed Ukrainian soldiers preparing for battle.

Melbourne hit by 3.8-magnitude earthquake

Herald Sun - Page Online : 29 May 2023 - Portmac.News Summary

Geoscience Australia has advised that the Sunbury area was the epicentre of an earthquake that was felt in some parts of Melbourne on Sunday night.

The earthquake was rated at 3.8 magnitude, and Adam Pascale from the Seismology Research Centre says it was the largest within 40km of Melbourne in more than 120 years.

A smaller of 1.7 magnitude was felt in some areas of Melbourne last Monday, and authorities have warned that further aftershocks are likely.

A 5.8 magnitude earthquake was recorded in north-east Victoria in September 2021, causing damage to heritage buildings in South Yarra.

'Canberra won't bow to Beijing' on Taipei trade pact

The Australian - Page 1 & 2 : 29 May 2023 - Original article by Will Glasgow - Portmac.News Summary

Both China and Taiwan are seeking to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, with entry to join the large trade pact requiring the unanimous support of all 11 members.

Taiwanese Trade Minister John Deng says he does not believe that Canberra would bow to pressure from Beijing to block Taiwan's application, claiming it represent a major reverse of its practice and policy over the past 40 or so years.

Deng says the federal government knows that Taiwan is a good market with no political interference, and he is confident Australia will make the right decision when the time comes.

Australia, US win on labour in Pacific trade

The Australian Financial Review - Page 15 : 29 May 2023 - Original article by Matthew Cranston - Portmac.News Summary

Launched by the US after it backed out of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2016, the Indo-Pacific Economic Framework aims to counter China's influence in the region.

Asian countries belonging to the IPEF have agreed to higher labour standards under a deal to co-ordinate supply chains under the IPEF, thereby making Australian and US exports more competitive.

Trade Minister Don Farrell travelled to Detroit to conclude negotiations on the supply chain agreement, while he also met with China's commerce minister Wang Wentao during his visit.

China edges closer to reopening door to WA

The West Australian - Page Online : 29 May 2023 - Portmac.News Summary

Trade Minister Don Farrell says he expects China to lift its 80% tariff on Australian barley within the next few weeks, with his comments coming after his third meeting with China's Commerce Minister Wang Wentao in the past two months.

However, resumption of crayfish trade with China remains up in the air, with China accounting for 93% of Australian lobster exports prior to the imposition of its unofficial ban on rock lobster exports in late 2020.

Western Australia accounted for 58% of Australia's lobster exports, valued at $315m.

Details of US debt ceiling deal being ironed out

The Guardian - Page Online : 28 May 2023 - Original article by Joanna Walters - Portmac.News Summary

US President Joe Biden and House speaker Kevin McCarthy have reached a tentative deal to raise the US debt ceiling, with McCarthy saying he wants legislation that will set out the details of the deal to be be voted on by the House on 30 May.

Biden has described the deal as an "Important step forward", while McCarthy said that "America wins on this one".

Treasury Secretary Janet Yellen has claimed that the US could default on its debt obligations by as soon as 5 June if lawmakers do not act in time to lift the federal debt ceiling.

66% believe Joe #2 term will 'lead to disaster'

ZeroHedge - Page Online : 28 May 2023 - Original article by Tyler Durden - Portmac.News Summary

A recent CNN poll conducted by SSRS has found that 66% of Americans think that another term of Joe Biden as president would "Lead to disaster".

It comes after an Associated Press/NORC poll in April revealed that only 26% of Democrats want Joe Biden to run for a second term.

It has been claimed that one reason for the decline in support for Biden is concern that he may have some type of dementia, given some of his embarrassing displays during diplomatic events.

There have been suggestions it might be time for him to take a cognitive test, given the current tensions between NATO and Russia and the potential for nuclear arms to be involved.

Warning on RBA power over rates

The Australian - Page 1 & 4 : 29 May 2023 - Original article by Patrick Commins - Portmac.News Summary

Proposed reforms to the Reserve Bank could see the formation of a new monetary policy board of nine, six of whom would be external expert members, with the new board to be tasked with the job of setting interest rates.

Commonwealth Bank head of Australian economics Gareth Aird notes the structure of the new board could result in a situation where the six external members could outvote the three RBA representatives on the board on interest rate decisions.

He says the proposed model differs from other central banks, where the majority of board members are from the central bank.

Labor floats making elderly pay more for care

The Australian Financial Review - Page 3 : 29 May 2023 - Original article by Andrew Tillett - Portmac.News Summary

The federal government's draft National Care and Support Economy Strategy forecasts that annual government spending on the aged, disability, veterans and early childhood sectors will rise from $60b in 2021-22 to more than $110b by 2026-27.

The draft strategy flags the idea of getting elderly people to make a greater contribution towards the cost of their aged care, while it contends that higher wages for carers in the aged, disability, veterans and early childhood sectors will only be achieved through productivity gains to avoid driving up costs of services further..

Overseas investors 'Wary of no vote'

The Australian - Page 1 & 6 : 29 May 2023 - Original article by Rosie Lewis, Eli Greenblat - Portmac.News Summary

Wesfarmers chairman Michael Chaney has claimed that foreign investors may question if Australia is a "Fair place" if the referen­dum on an Indigenous Voice to parliament fails, and that not supporting it will amount to a betrayal of Wesfarmers' Indigenous employees, customers and suppliers.

His comments have been described as an "Overreach" by the Australian Chamber of Commerce & Industry, and have been attacked by the No campaign.

Chaney does not think his comments will be viewed as "Elitist interference", while he believes it is very important that the Voice should have the power to make representations to executive government.

FOI changes kept secret from public

The Australian - Page 18 : 29 May 2023 - Original article by Michael McKinnon - Portmac.News Summary

A Senate hearing was recently told of excessive delays in resolving appeals to the Office of the Australian Information Commissioner with regard to Freedom of Infomation applications.

The hearing was told that 967 appeals are at least two years old, while 34 date back to 2018.

Meanwhile, it has been revealed that potential changes to the FoI Act have not been disclosed because the OAIC has deemed that it would be against the public interest to do.

The OAIC has come under scrutiny in the wake of Leo Hardiman's resignation as FoI Commissioner earlier in 2023, less than 12 months into his five-year term.

Royalty bonanza puts Qld in surplus

The Australian - Page 5 : 29 May 2023 - Original article by Michael McKenna, Lydia Lynch - Portmac.News Summary

Sources have indicated that the Queensland government is set to deliver a record budget surplus of around $10bn in June.

The budget bottom line will be boosted by a $6bn increase in revenue since December, primarily from changes to the state's coal royalties regime that took effect in mid-2022.

Queensland Resources Council CEO Ian Macfarlane says the coal royalty changes have damaged the state's reputation and prompted resources companies to reconsider projects in the state.

Most of the extra revenue is expected to be used to reduce the state's debt; however, Premier Annastacia Palaszczuk has indicated that the budget will include some new cost-of-living measures.

Shorts crackdown: ASIC targets hedge fund trades

The Australian Financial Review - Page 19 : 29 May 2023 - Original article by Jemima Whyte - Portmac.News Summary

The Australian Securities & Investments Commission is directing hedge funds and investment banks to provide it with documents to demonstrate that they are complying with short-selling regulations.

Calissa Aldridge from ASIC notes that it is taking a more proactive surveillance approach to short-selling, due to the sensitivity around US regional banks and increased market volatility.

ASIC is particularly keen to crack down on an illegal practice known as 'Naked' short selling, which happens when short selling occurs without owning or borrowing the underlying shares.

April retail sales record 4.2% year-on-year growth

Australian Retailers Association - Page Online : 29 May 2023 - Portmac.News Summary

Data from the Australian Bureau of Statistics shows that shoppers spent more than $35.2b nationwide in April.

Retail sales recorded 4.2% growth year-on-year in April, bolstered by cafes, restaurants and takeaway (up 13.2%).

Department stores (up 6.5%) food (up 6.2%) and clothing, footwear and accessories (up 4.9%) also showed modest growth.

All states and territories recorded growth year-on-year, led by South Australia (up 7.6%).

ARA CEO Paul Zahra says that whilst sales are slowing, several categories showed reasonable sales growth year-on-year, especially amid a cost-of-living crisis.

AI hopeful Complexica raises $6.5m with a focus on M&A

The Australian - Page 16 : 29 May 2023 - Original article by Cameron England - Portmac.News Summary

Artificial intelligence firm Complexica has raised $6.5m from Acorn Capital, with the company to use the money to fund organic growth as well as merger and acquisition opportunities, according to CEO Matt Michalewicz.

Complexica's Decision Cloud technology aims to help companies make better decisions in situations where there is a large amount of data that is beyond the ability of human managers to absorb and use in a timely fashion.

The $6.5m raised from Acorn Capital brings the funds that Complexica has raised since 2021 to more than $31m, while Metcash, Pfizer and Endeavour Group are among its customers.

AI threat 'Looms for media industry'

The Weekend Australian - Page 5 : 27 May 2023 - Original article by Sophie Elsworth - Portmac.News Summary

News Corporation CEO Robert Thomson has told the International News Media Association's World Congress of News Media of the threat that artificial intelligence poises to the media industry.

He stated that the collective IP of the sector was at risk and it should be compensated for the journalistic content that "Is harvested and scraped and otherwise ingested to train AI engines".

Meanwhile, former Australian Competition & Consumer Commission chairman Rod Sims has called on the federal government to take immediate action to regulate the digital platforms as a result of the surge in generative AI.

Local quotas would spur TV boom

The Australian Financial Review - Page 30 : 29 May 2023 - Original article by Sam Buckingham-Jones - Portmac.News Summary

The federal government aims to introduced local content quotas for streaming video services by mid-2024.

Free-to-air TV networks have warned that amongst other things, quotas would result in higher production costs and result in the best local content being restricted to paid streaming services.

Former Nine Entertainment CEO Hugh Marks is in favour of a quota scheme, contending that it would encourage the development of new program formats that can be sold internationally.

However, he argues that the quotas should only apply to new and original formats.

TV networks' rivals circle $180m betting ads cash cow

The Australian Financial Review - Page 30 : 29 May 2023 - Original article by Sam Buckingham-Jones - Portmac.News Summary

Standard Media Index estimates that Australia's gambling advertising market is worth more than $300m a year.

However, total spending on gambling ads is likely to be much higher, given that betting firms buy their digital and social media advertising via in-house teams rather than media agencies.

A mooted government crackdown on gambling ads on TV has led to increased interest in advertising via other mediums, including online and outdoor advertising.

Move over, Murdoch. Musk's fortune makes him political kingmaker

The Sydney Morning Herald - Page Online : 29 May 2023 - Original article by Laura Davison, Amanda Albright - Portmac.News Summary

The decision by Florida governor Ron DeSantis to use a Twitter conversation with owner Elon Musk to announce his 2024 presidential election campaign is seen by some as a chance for Musk to join the ranks of Republican powerbrokers, previously dominated by media mogul Rupert Murdoch.

DeSantis is viewed as the Republican most likely to defeat former President Donald Trump, who also made use of Twitter in his own rise to power, and Republican Party digital strategist Becki Donatelli notes Musk has a lot of support among the Republican's voter base

Is the podcast bubble bursting?

The Age - Page Online : 29 May 2023 - Original article by Nick Bonyhady - Portmac.News Summary

There was huge growth in podcasting during the COVID-19 pandemic.

Spotify was a key driver of growth in podcasting immediately prior to the pandemic, paying big money for exclusive access to some of the world's most popular podcasts.

However, Spotify has now chosen to make some of its podcasts available on rival platforms; this includes podcasts that were created by its in-house studio, Gimlet.

Acast Australia executive Henrik Isaksson believes that Spotify has made the right decision.

The contest for entertainment gold in Brisbane

The Australian Financial Review - Page 21 : 29 May 2023 - Original article by Liam Walsh - Portmac.News Summary

Entertainment companies ASM Global and Live Nation Entertainment are hoping to win the operating rights for the proposed $2.5b Brisbane Arena.

The indoor venue is planned to seat 17,000 people and would host the swimming events during the 2032 Brisbane Olympic Games.

Both ASM Global and Live Nation have hired politically connected lobbyists to boost their chances of securing the operating rights for the Brisbane Arena, while both companies have often provided free tickets to Queensland politicians to attend one of their events.

BHP tests electric trucks the size of two-storey house

Brisbane Times - Page Online : 29 May 2023 - Original article by Simon Johanson - Portmac.News Summary

BHP is aiming for a 30% reduction in its carbon emission by 2030, and to achieve net-zero by 2050.

Converting its 650-strong fleet of heavy haulage trucks from diesel fuel to renewable energy will be a key part of this strategy.

The trucks weigh 20-25 tonnes apiece, and have an ore carrying capacity of 220 to 400 tonnes.

BHP is working with Caterpillar and Komatsu to develop electric versions of these trucks; they will be tested at its iron ore mines in the Pilbara in 2024, along with electric locomotives to move ore from the mines to port.

D-Day for Rinehart family's epic Hope Downs court saga

The West Australian - Page Online : 29 May 2023 - Original article by Tim Clarke - Portmac.News Summary

A date has finally been set for the trial that will see Gina Rinehart in battle against two of her children over stakes in the Hope Downs iron ore mines.

The trial will start on 10 July, after the Western Australian Court of Appeal refused on 26 May to agree to Rinehart's bid for a stay or adjournment of the trial.

The case sees the family company of Peter Wright, the late former business partner of Lang Hancock, claiming half of Hancock Prospecting's stake in the Hope Downs 4 mine and royalties from Hope Downs 1, while DFD Royalties, the family company of late Pilbara prospector and trucker Don Rhodes, is also claiming a 1.25% royalty on Hope Downs production.

Both actions are at odds with claims by John Hancock and Bianca Rinehart, Rinehart's two eldest children, that they are entitled to Hancock Prospecting's half share in the Hope Downs operations.

Buyers squeezed by rent race to lock in properties

The Australian Financial Review - Page 8 : 29 May 2023 - Original article by Nick Lenaghan - Portmac.News Summary

Preliminary data from CoreLogic shows that Sydney's residential auction clearance rate rose to 78.5% in the week to Saturday, while the clearance rate in Melbourne rose to 77.1%.

The national preliminary clearance rate rose to 75.9%, which is its highest level since November 2021.

SQM Research founder Louis Christopher notes that both investors and first-home buyers are active at present, although he cautions that another increase in the cash rate in June could see a pause in housing market activity.

Australia's rental affordability worst in decade

The Guardian Australia - Page Online : 29 May 2023 - Original article by Mostafa Rachwani - Portmac.News Summary

A new report from the ANZ Bank and CoreLogic has underlined the growing housing crisis in Australia.

The report shows that rental affordability has fallen to its lowest level since June 2014.

The cost of servicing a new lease has risen to 30.8% of average income nationwide. ANZ senior economist Felicity Emmett says rental demand pressures are being felt in all income brackets.

However, households with lower incomes are being hardest hit, with rent costs often accounting for more than half of their income.

ASX to rally after US strikes deal to avoid default

The Australian Financial Review - Page 24 : 29 May 2023 - Original article by Joanne Tran - Portmac.News Summary

Futures pricing suggests that Australian equities will gain about 1% today, after the Biden administration secured a tentative deal to increase the US debt ceiling.

A positive lead from Wall Street is also likely to bolster the local bourse.

However, Shane Oliver of AMP Capital believes that any boost for equities arising from the debt ceiling talks may be short-term, and further volatility can be expected.

Key economic data to be released over the coming week include CPI figures for April, dwelling approvals and private sector credit. The benchmark S&P/ASX 200 rose 0.2 per cent to 7,154.8 points on Friday.