(Bloomberg) --
Hello Australia, it’s Jackie here and this is what’s happening around our region this morning:
Better Than Expected: ANZ Bank’s first-half profit topped analyst estimates as the economy recovers from the pandemic. Cash profit from continuing operations rose to A$3.1 billion in the six months through March 31, beating an estimated A$2.89 billion.
Heating Up: The red-hot economy forced the RBA’s hand as it raised rates during an election campaign, Bloomberg Opinion’s Daniel Moss writes. Yesterday’s bigger-than-expected hike jolted markets and spurred political bickering.
Property Pain: Meanwhile, the RBNZ warned a “sharp correction” in house prices is possible as it lifts interest rates. New Zealand’s housing market has been in retreat since the central bank kicked off its tightening cycle in October.
Climate Clash: Mike Cannon-Brookes’s efforts to block AGL’s demerger sets up a showdown over the speed of the country’s shift to clean power. The billionaire Atlassian founder is lobbying the utility’s investors before they vote on a plan to divide the firm’s retail and power assets.
Got Skills? The CEOs of Transurban and Mirvac have revealed what’s on top of their wish list for the economy in the run-up to the election: more people. Both leaders say the country urgently needs more skilled workers.
What Happened Overnight
Bumpy Road: U.S. stocks closed higher after another volatile session, with traders awaiting more clues on whether the Fed will be able to pull off a soft landing that brings down inflation without triggering a recession. Most economists expect the central bank will deliver a 50 basis-point hike on Wednesday and hints about further increases.
Ukraine Latest: France's Emmanuel Macron asked Vladimir Putin to allow evacuations to continue from the Azovstal steel plant in Mariupol. Ukrainian forces trapped there said they're facing a Russian assault.
China Covid Woes: Fitch cut its forecast for the country's 2022 GDP growth to 4.3% from 4.8%, citing pandemic policies. It revised its 2023 growth forecast slightly higher to 5.2% from 5.1%, assuming China will phase out its Covid-Zero policy only gradually over the course of next year.
Tariff Review: The Biden administration is taking the first step toward a review of tariffs on more than $300 billion in Chinese imports that's required to keep them from expiring in July. If a request is received by July 6, the USTR will keep the duties in place as it conducts a review for future needs.
What to Watch
- Australia releases retail sales and home lending data
- New Zealand unveils jobs report
- Josh Frydenberg and Jim Chalmers face off at the Treasury debate
One More Thing…
Not My Yacht: Fiji gave the green light for the U.S. government and local authorities to seize a $325 million megayacht whose ownership is in dispute. The U.S. claims the vessel's owner is sanctioned Russian gold tycoon Suleiman Kerimov. A lawyer representing the firm under which the vessel is registered said the yacht is owned by another tycoon not on sanctions lists.
And with that, have a great day.
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