Here are the headlines from the S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) and Australian finance circles on Tuesday morning.
But first, here are the data points:
Australian Dollar ($A) (AUDUSD): 72 US cents
Dow Jones (DJI): closed
Oil (WTI): $US70.09 per barrel
Gold: $US1,206 per ounce
Australian Investing News
Making headlines, the Reserve Bank of Australia (RBA) will meet today to set its latest policy on interest rates. With official rates already at record-low levels, Australian household debt very high and house prices coming under pressure, some commentators are suggesting the RBA has missed the boat with interest rate increases.
That is, banks like Westpac Banking Corp (ASX: WBC), Suncorp Group (ASX: SUN) and Adelaide Bank have already hiked interest rates on mortgages despite the RBA’s low ‘official’ rate. The banks are blaming higher overseas funding costs.
According to Bloomberg, the RBA will keep its rates on hold at 1.5% as the Australian economy continues to deal with the longest stretch of sub-2.5% growth in around 30 years.
In company news, Decmil Group Limited (ASX: DCG) was awarded an $86 million contract with the Major Road Project Authority in Victoria to design and build the Drysdale Bypass. Decmil has now been awarded two contracts in Victoria totaling $146 million.
Suncorp confirmed the sale of its Australian life insurance business by signing a share sale deed with TAL Dai-ichi Life Australia Pty Ltd. As we reported here, Suncorp conducted a strategic review and entered a heads of agreement to sell its life business for $725 million. The bank also flagged a return of capital to shareholders.
Finally, infant formula business Bubs Australia Ltd (ASX: BUB) confirmed that Kristy Carr will take the reigns as CEO from October 2018. Carr is the Founder of Bubs Australia.
“Kristy has been very much part of the leadership team responsible for the company’s success and performed an integral role in advancing recent developments in our China route-to-market strategy,” Bubs Australia Chairman Dennis Lin said.
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