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Australia’s Economy Grows Less Than Expected in Q3 as Post-COVID Boom Fades By Investing.com

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© Reuters.

by Ambar Warrick

Investing.com – Australia’s economy expanded for a fourth consecutive quarter in the three months to September, data showed on Wednesday, but appeared to be losing momentum amid rising inflation and slowing commodity demand in China.

Data from the Australian Bureau of Statistics (ABS) showed growth of 0.6% for the three months to September 30, slowing from a rise of 0.9% in the previous quarter. The reading also missed market estimates for a growth of 0.7%.

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On a year-over-year basis, the growth rate grew 5.9% year-over-year, more than the previous quarter’s growth of 3.6%, but lower than the 6.2% growth estimate.

The Census Bureau said in a statement that growth during the quarter was largely driven by household spending. Strength in the labor market and steady wage growth helped drive consumer spending during the quarter.

But that trend appears to be running out of steam, with inflation now at a 32-year high, while consumer confidence has fallen to its lowest level since the 2020 COVID-19 pandemic. It slowed to 0.8% in the quarter from 1.3% in the June quarter.

This slowdown was also reflected in an unexpected drop in the October reading, which may now herald some weakness in what is arguably the biggest driver of the Australian economy.

Rising interest rates and high inflation also weighed heavily on savings by Australian households during the quarter.

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However, the country recorded its fourth consecutive quarter of growth after contracting in the third quarter of 2021 due to the COVID-19 pandemic.

Australia’s economy has recovered sharply after the country eased most COVID-related restrictions earlier this year. But now that boom appears to be running out.

Australian commodity exports declined due to lower demand in the main market in China and lower prices as markets feared weak demand for commodities.

The country posted an unexpected deficit in the third quarter, as the value of its exports fell and strong domestic demand pushed up imports.

The Australian housing market remained under pressure from rising interest rates. Interest rates were raised by 25 basis points on Tuesday, and he indicated that he would take into account economic health when deciding whether to continue raising rates.

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The change was slight at around 0.6694 after the reading.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.