Weekly Wrap

Up-to-date job vacancy figures from the Australian Bureau of Statistics (ABS) are another economic data point likely to frustrate the Reserve Bank in its considerations of inflation, demand, employment, and interest rates.

The Federal government’s approval for the extension of three NSW coal mines will ensure around 1,800 jobs are maintained for decades to come.

The Reserve Bank left rates on hold for another month and maintained its anti-inflation stance at its latest meeting on Monday and Tuesday.

Each week The Last Word will offer a review of the week's events and their impact on the markets.

As expected, the Bank of England held rates steady at 5% during its meeting on Thursday, despite some enthusiastic traders attempting to promote the idea of a rate cut following the Federal Reserve’s half a per cent reduction the day before.

Equities jumped, then sagged, as did gold, as the seismometer of economic uncertainty played it safe following the Fed’s surprise half-per-cent cut in its Federal Funds Rate.

From an all-time high earlier this month to the longest fall in 15 years, Berkshire Hathaway and Warren Buffett have experienced the highs and lows of stock market life over the past 12 days.

A second rate cut in Europe and one next week for the US – the pace of central bank policy easings is accelerating.

August was a good month for global electric vehicle sales, except in Europe.

In the midst of a volatile yen crisis, a global carry trade sell-off, and anticipation surrounding the Jackson Hole symposium, global physically-backed gold ETFs continued to show confidence in the precious metal during August, adding another US$2.1 billion in inflows. This marked the fourth consecutive month of positive inflows, with Western funds standing out, according to a World Gold Council (WGC) survey.

The much-anticipated wave of gold sector consolidation is finally gathering momentum. While some notable deals, such as Newmont’s $19 billion bid for Newcrest last year, have made headlines, mergers and acquisitions in the gold space have been relatively sporadic. However, AngloGold Ashanti’s recent £1.9 billion bid for UK-listed Centamin signals that pressure for consolidation is mounting.

Has the Reserve Bank’s "control inflation at all costs" approach caused it to miss the chance to ease pressures on the economy?

Enthusiasm surrounding artificial intelligence (AI) is overshadowing broader struggles across the technology sector, with many companies still grappling with the slowdown that began in 2022, according to investors and recent financial reports.