Business News

5 things you need to know today

1. Fears of a future recession have increased after the yield for the two-year US treasury note rose above the ten-year note for the first time in 12 years. According to Credit Suisse, the yield curve inversion is followed by a recession 22 months later on average.

2. The Dow Jones fell by 800.49 points or 3.05% to 25,479.42, the biggest fall of the year and the fourth largest point drop of all time according to CNBC. The S&P 500 fell 2.93% to 2,840.60 and the Nasdaq dropped 3.02% to 7,773.94.

3. President Donald Trump has again publicly criticised the US Federal Reserve and its chairman Jerome Powell, describing Powell as "clueless" and blaming the central bank for the falls on Wall Street. "CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back," Trump tweeted.

4. As the trade war between China and the US continues, new trade figures reported by the AFR have shown that China is becoming more reliant on Australia for energy and mineral exports. Australia accounted for 46% of China's LNG imports in the last financial year, and 74% of iron ore imports in June.

5. ASIC is planning to make changes to responsible lending laws this year after its case against Westpac for 261,987 alleged breaches of the laws was dismissed on Tuesday.

Published on: Thursday, August 15, 2019

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