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Huawei: US launched cyber-attacks against its systems

Huawei remarks in an emailed statement

Huawei
  • US government is trying to disrupt its normal operations
  • US instructed law enforcement to threaten its workers
This once again shows that any dispute between the two nations extends beyond the realms of trade. It also highlights why China is adamant to involve Huawei operations with any “trade deal” that may come about between both parties.
The headlines above certainly won’t go down well with sentiment as it risks a further divide between the US and Chinese camps, who are still trying to sort out a meeting this month.

RBA leaves cash rate unchanged at 1.00% as expected

The RBA announces its latest monetary policy decision – 3 September 2019

  • Prior 1.00%
  • To ease policy if needed to support sustainable growth
  • It is reasonable to expect an extended period of low rates
  • Risks are to the downside for the global economy
  • Outlook for global economy is reasonable
  • Global financial conditions remain accommodative
  • Inflation is likely to be subdued for some time
  • Outlook for consumption remains main domestic uncertainty
  • Further lift in wages growth will be welcome
  • AUD is at its lowest level of recent times
  • Central scenario is for underlying inflation to be a little under 2% in 2020
At first glance, there isn’t any major changes to the statement as the RBA continues to keep the key passage of easing policy further “if needed”. This still puts November as the likely timeline for the central bank’s next move if current conditions continue to play out.
Essentially, nothing much has changed but the RBA is acknowledging some better conditions in the housing market at least but consumption/household debt and inflation remains a key problem for the economy still.
AUD/USD has moved up a little to 0.6710 from 0.6695 earlier but there isn’t much to suggest a significant move to the upside for now.

Full text of the RBA September monetary policy meeting statement

The full text of the RBA statement – 3 September 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent.

The outlook for the global economy remains reasonable, although the risks are tilted to the downside. The trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans due to the increased uncertainty. At the same time, in most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken further steps to support the economy, while continuing to address risks in the financial system.

Global financial conditions remain accommodative. The persistent downside risks to the global economy combined with subdued inflation have led a number of central banks to reduce interest rates this year and further monetary easing is widely expected. Long-term government bond yields have declined and are at record lows in many countries, including Australia. Borrowing rates for both businesses and households are also at historically low levels. The Australian dollar is at its lowest level of recent times.

Economic growth in Australia over the first half of this year has been lower than earlier expected, with household consumption weighed down by a protracted period of low income growth and declining housing prices and turnover. Looking forward, growth in Australia is expected to strengthen gradually to be around trend over the next couple of years. The outlook is being supported by the low level of interest rates, recent tax cuts, ongoing spending on infrastructure, signs of stabilisation in some established housing markets and a brighter outlook for the resources sector. The main domestic uncertainty continues to be the outlook for consumption, although a pick-up in growth in household disposable income and a stabilisation of the housing market are expected to support spending. (more…)

It’s official….Expect call for general election if government loses vote on Tuesday

Senior UK government official makes it official

  • expect governments present motion to Parliament calling for an election if government loses votes on Tuesday
  • expected vote on holding an election to be held on Wednesday
  • likely election date would be October 14
  • if lawmakers rejected rebels plan, the government will not hold vote on having an election
  • vote on having an election would require two thirds majority to pass
  • conservative lawmakers who vote against government on Tuesday would lose party whip
  • PM continues to be keen to engage with other lawmakers on this issue
  • cabinet shared PM’s apprehension of an election, but recognized UK negotiating position cannot be undermined
  • would expect EU sharpas to keep negotiating in coming days

North Korea denies it stole $2 billion through hacking banks and cryptocurrency exchanges

n a statement via State Media, Korea Central News Agency (KCNA), officials in NK say they didn’t do it!

In a statement via State Media, Korea Central News Agency (KCNA), officials in NK say they didn't do it!
You may recall a few months back the UN concluded tNK had stolen the money:
“Democratic People’s Republic of Korea cyber actors were raising money for its WMD (weapons of mass destruction) programs, with total proceeds to date estimated at up to two billion US dollars.”
Says NK’s National Coordination Committee of the DPRK for Anti-Money Laundering and Countering the Financing of Terrorism
  • “Such a fabrication by the hostile forces is nothing but a sort of a nasty game aimed at tarnishing the image of our Republic and finding justification for sanctions and pressure campaign against the DPRK.”