Tourism stocks have been on a one-way trip down. Is it time to buy?
Now – as the uncertainty recedes, somewhat – big investors are scouring the sector hoping to find a bargain. Locally listed travel businesses are also being helped by a surprisingly enduring boom in tourism. Figures published by the Australian Bureau of Statistics show a 20.1 per cent increase in the number of short trips taken in May compared to the same time last year.
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The Advertiser
2 hours ago
- The Advertiser
Reserve Bank minutes in focus after shock rate decision
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth. Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut. The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12. Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print. The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday. Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth. Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut. The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12. Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print. The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday. Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth. Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut. The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12. Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print. The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday. Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth." The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth. Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut. The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12. Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print. The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday. Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
Perth Now
2 hours ago
- Perth Now
Reserve Bank minutes in focus after shock rate decision
The Reserve Bank is set to reveal why it resisted an interest rate cut, despite signs of easing inflation and sluggish economic growth. Australia's central bank shocked markets and disappointed borrowers earlier in July when it opted to keep the cash rate on hold at 3.85 per cent, defying expectations of a 25 basis point cut. The RBA will on Tuesday release the minutes of its last board meeting, potentially offering a glimpse of what lies ahead for its next decision on August 12. Weaker-than-expected jobs data has narrowed expectations of an interest rate cut next month, after unemployment rose from 4.1 per cent to 4.3 per cent in June, despite economists' expectations of a steady print. The employment figures were released on Thursday and could render the minutes slightly outdated, and a greater focus will be on RBA governor Michele Bullock's speech at Sydney's Anika Foundation on Thursday. Interest rate markets have almost fully priced-in a 25 basis point cut to the official cash rate at the August meeting, and project the rate will fall to 3.2 per cent by the end of the year. Each 25 basis point cut to the cash rate would shave roughly $90 off monthly repayments on a $600,000 mortgage. In further signs Australia's idling economy may need a boost, government spending continues to drive the bulk of new project activity, accounting for 80 per cent of new investment in the June quarter, a Deloitte Access Economics report shows. The overall project pipeline continued to grow but state budgets suggest a transition to more cautious spending, the report found, with a focus on completing existing projects over announcing new ones. While infrastructure spending helped economies recover from the COVID-19 pandemic, many governments now face higher debt levels, rising interest costs and project budget overruns, Deloitte associate director and lead author Sheraan Underwood said. "Australia's infrastructure boom isn't over," he said. "But with governments under growing fiscal pressure, stronger private sector investment will be key to supporting the next phase of economic growth."
Sky News AU
12 hours ago
- Sky News AU
Top European general warns Albanese government over defence spending in face of China threat
A top military general in Europe has warned the Albanese government it needs to raise its defence capability in the face of ever-growing threats in the Pacific. Dutch General Onno Eichelsheim, visiting Australia for the annual Talisman Sabre war games hosted by the Australian Defence Force, said Australia needs to 'seriously' prepare for war. The Netherlands was among the swathe of NATO nations that recently lifted their military spending to 3.5 per cent of GDP. The Dutch defence chief said the Netherlands had responded to Russia's increased aggression in Europe and that countries in the Indo-Pacific must be wary of China as well. 'You should look at the facts that are around you … if Russia tells us that they want to have more influence, than take that seriously,' he said. 'And if you see in this case in this region - China building up - take it seriously and get ready for something that you hope will never happen. 'But if you prepare for war, you can avoid war and that's how we look at it.' General Eichelsheim said it was 'not about the percentage' but about the 'capabilities', a notion the Albanese government has openly expressed. However, the Dutch general insisted Australia needed to lift its capabilities and spending to ensure it could defend itself from a threat. Australia's defence budget has been forecast to reach only 2.33 per cent of GDP by 2033, which has frustrated the Trump administration. The Trump administration has been publicly frustrated by the Albanese government's resistance to increasing defence spending to 3.5 per cent requested by US Defence Secretary Pete Hegseth.
