Hike

• Federal Reserve Chair Kevin Warsh signaled on Friday, Aug. 28, 2026, that the central bank may raise interest rates in the coming months. • Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh stated that U.S. inflation remains stubbornly elevated and is still too high. • This announcement represents a clearer and more direct signal regarding his economic outlook than he has provided in previous communications.

• The Australian dollar reached its highest level since May as traders increased bets on potential interest rate hikes by the Reserve Bank of Australia (RBA). • In a separate industry shift, MUFG Pension & Market Services has entered into a binding scheme implementation deed to acquire the administration platform Grow. • This acquisition follows previous issues where HESTA members faced difficulties accessing retirement savings, prompting intervention from the financial regulator APRA.

Bag, camera and pipe belonging to 86-year-old are latest relics uncovered as glaciers melt due to global heatingAn 86-year-old mountaineer has been reunited with his backpack and climbing equipment after they emerged from a melting glacier in Austria – more than 60 years after he was forced to leave them there.Items including an ice axe, camera and a pipe dating from the 1950s or 1960s were discovered on the Sulztalferner glacier in Austria’s Tyrol region, at an altitude of 2,955 metres (9,700ft) above sea level, by a hiker in July. Continue reading...

• The European Central Bank (ECB) is preparing to increase its key policy rates during its upcoming September meeting. • Sources indicate that the central bank currently has no appetite for further interest rate hikes following the September decision. • Policy decisions are determined by the ECB President, Christine Lagarde, alongside six permanent members and the heads of Eurozone national banks.

• The Reserve Bank of Australia (RBA) has reduced its target share of US dollars within its foreign reserves portfolio by 10 percentage points for 2025. • This strategic shift occurs as major banks predict another interest rate hike may be necessary this year to manage economic pressures. • Separately, China's vice-finance minister pledged in late August to implement additional fiscal support measures following a loss of economic momentum in the third quarter.

ABS says CPI was 3.5% in July, casting doubt on Reserve Bank meeting its 2.5% inflation target without further hikeFears are growing that the Reserve Bank will hit millions of mortgage holders with a fourth rate hike this year, after inflation eased in July but by far less than expected.Consumer prices climbed by 3.5% through the year, down from 3.8% in the previous month, according to the Australian Bureau of Statistics. Continue reading...

• Nvidia stock experienced a 2.73% decline, falling to $209.2 today. • The pullback is primarily attributed to price hikes for AI servers and ongoing discussions regarding new AI investments. • This volatility highlights the market's sensitivity to pricing adjustments and investment shifts within the high-demand AI infrastructure sector.

• Market analysts suggest Scott Bessent’s interventions were ineffective, while Japan's inflation approaching the 2% target provides a positive signal for the Bank of Japan to hike rates. • In the Philippines, digital payment adoption is surging, with Nikkei reporting the nation is "racing towards a cashless future" as digital payments are projected to hit 64.7% by 2025. • Indonesia is preparing to release Q2 Current Account data, with forecasts predicting a deficit of $-1.8B, an improvement over the $-4B recorded in Q1.

• The People's Bank of China maintained its Loan Prime Rates (LPRs) overnight, keeping the 1-year rate at 3.0% and the 5-year rate at 3.5%. • This decision aligns with market expectations and follows the stability of the 7-day reverse repo rate, which has seen no recent adjustments. • Economic data shows industrial production grew 1.5% q/q, significantly bolstered by an 11.7% q/q increase in windmill production.

Premier Chris Minns tells parliament ‘this is obviously devastating’ after earlier announcing 18-year-old had been ‘found alive’ with half a bottle of waterFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastThe body of missing 18-year-old bushwalker Lily Hooper has been found in a remote New South Wales national park more than a week after she set out on her hike.“I’ve got some terrible news,” the NSW premier, Chris Minns, told a parliamentary hearing on Thursday. Just minutes earlier, Minns had said Lily had been “found alive”. Continue reading...

• The UK labour market is cooling, with youth unemployment dropping to 16.2%, though it remains high, potentially reducing the need for further Bank of England interest rate hikes. • Grocery inflation has slowed to a two-year low, while Brent crude oil prices have climbed above $91 a barrel following the end of the US-Iran ceasefire. • Government officials are considering unprecedented interventions in the gas market, including financial support for storage and pipeline operators to ensure long-term infrastructure maintenance.

Lily Hooper has not been seen since leaving for a hike in Nattai national park, south-west of Sydney, on 12 AugustGet our breaking news email, free app or daily news podcastThe family of missing 18-year-old bushwalker Lily Hooper say they are “absolutely devastated” that she has not been found after a multi-agency search.On Tuesday, search efforts for the teenager continued through the dense tree canopy and rugged terrain of Nattai national park, about 90km south-west of Sydney, for a seventh day. Continue reading...

Billionaire CEO of world’s biggest bank says any windfall tax on sector’s bumper profits could harm jobs in the CityJamie Dimon, the boss of the US bank JP Morgan, has urged John Healey not to use his first budget as chancellor to increase taxes on banks’ bumper profits.Speculation has been growing that a windfall tax could be imposed on UK lenders to fund Andy Burnham’s cost of living agenda, with campaigners estimating such a move could raise £19bn. Continue reading...

Family paid tribute to Bristol University geology student, 18, after being notified by Avon and Somerset policeA body has been found in the search for an 18-year-old British man who went missing last year while hiking in Romania, UK police said.George Smyth, a geology student at the University of Bristol, went missing in November. Continue reading...

Fresh search teams to scour Nattai national park for Lily Hooper, 18, who failed to return home from a bushwalkGet our breaking news email, free app or daily news podcastThe search for an 18-year-old bushwalker missing in the Southern Highlands of New South Wales since Wednesday is continuing, with fresh teams arriving at the Nattai national park on Saturday morning.Lily Hooper left her home in Sydney’s south-west about 8am on 12 August, after telling family she was going for a hike in the national park, north-west of Mittagong. Continue reading...

• The EUR/JPY currency pair rose 0.15% on Friday, trading around 184.15 as investors weigh potential interest rate hikes from both the European Central Bank (ECB) and the Bank of Japan (BoJ). • July inflation data showed a 0.1% monthly increase in headline CPI and 0.2% for core inflation, with annual headline inflation remaining high at 3.4%. • The current economic climate is significant because high inflation is stagnating spending power for wage earners and keeping core inflation above the 2% target.

• Asian stock markets are positioned to end the week with overall gains. • The positive momentum is driven by decreasing investor bets that the U.S. Federal Reserve will implement further interest rate hikes. • This shift in sentiment matters as lower expected U.S. rates typically boost investor appetite for riskier assets in emerging Asian markets.

• Asian stock markets generally rose, led by a significant 3.7% rally in South Korea’s Kospi Index, while Japan’s Topix and the Shanghai Composite both climbed 0.5%. • The positive momentum follows a cooler-than-expected US jobs report and CPI reading, which Wells Fargo suggests may discourage the Federal Reserve from taking hawkish rate hikes in September. • Despite the broad rise, caution remains as Cisco Systems' shares dropped 4.1% due to disappointing earnings, and Cerebras Systems plummeted 17% following a decline in hardware sales.

• Global equities rose on Thursday, with Asia-Pacific shares outside Japan climbing 0.96% and emerging market stocks increasing 0.85% to 1,696.17. • The rally was driven by investors reducing their bets on further U.S. interest rate hikes, though the pan-European STOXX 600 remained muted, closing at 659.24 points. • Oil prices declined due to higher inventories, which subsequently weighed down energy and mining shares across European markets.

• The EUR/JPY currency pair remained steady around 183.80 on Thursday, reflecting a balance between European Central Bank (ECB) rate hike expectations and Bank of Japan (BoJ) tightening hopes. • The Japanese Yen continues to struggle due to significant interest rate differentials compared to other major economies and rising import costs. • Concerns regarding Japan's fiscal position are further weighing down the Yen, preventing a strong recovery despite potential policy shifts.

• US stock markets, including the S&P 500, Nasdaq, and Dow, rose as falling crude oil prices and softer inflation data boosted investor sentiment. • Core Producer Price Index (PPI) rose 0.2%, coming in below the 0.3% forecast, following a July Consumer Price Index (CPI) increase of 0.1%. • These subdued inflation readings are significant because they have led traders to reduce expectations for a potential interest rate hike in September.

• European stocks rose following the release of U.S. Consumer Price Index (CPI) data that met targets, reducing market expectations for further Federal Reserve interest rate hikes. • Investors are now awaiting Spain's final July CPI figures and the Eurozone's industrial production report to assess regional disinflation and manufacturing trends. • These upcoming benchmarks will help the European Central Bank determine if current economic momentum aligns with its policy projections for the autumn season.

Amid doubling prices and fraying tempers, shoppers hunt for elusive eyewear to prepare for rare eclipse of sun• Europe solar eclipse – latest updatesA secretive WhatsApp group was pinging with notifications throughout Wednesday, letting its members know where in London the latest “drop” would take place.The group’s focus, rather than being for an illicit substance, was for the much coveted eclipse glasses, which have prompted a frantic rush on shops before the celestial event. Continue reading...

When it comes to the Reserve Bank, there’s a whiff of a parent making a threat they have no intention of carrying outGet our breaking news email, free app or daily news podcastEvery parent makes threats in an effort to get their kids to behave – and every parent hopes they won’t have to follow through.Some (most?) parents even make threats they have zero intention of carrying out. Continue reading...

• Victorian Premier Ben Carroll has announced delays to a pioneering government bill that would legislate a right for employees to work from home two days a week. • The legislation, described as a "nation-first" initiative, will now be postponed and will not take effect until after the upcoming election. • This move impacts the timeline for establishing formal remote work entitlements for Victorian workers, shifting the focus toward the electoral cycle.

Regulator finds many insurers raising premiums faster than inflation and advises customers to ask for better dealsGet our breaking news email, free app or daily news podcastCar owners should challenge motor insurers over steep premium hikes, the corporate regulator advises, after finding many companies were raising prices faster than inflation.In a report released on Tuesday, the Australian Securities and Investments Commission (Asic) found that none of the eight insurers it reviewed adequately explained the reasons behind premium calculations to customers or why prices had changed in quote or renewal documents. Continue reading...

• The S&P 500 closed at a record high following a softer-than-expected U.S. jobs report, which reduced investor concerns regarding further interest rate hikes. • Data from the U.S. Labour Department revealed that nonfarm payrolls dropped by 23,000 jobs in July, falling significantly below market estimates. • Market analysts, including Tom Siomades of AE Wealth Management, note that while weak employment may force rate cuts to stimulate growth, such moves risk increasing inflation.

• The TSX and S&P 500 both closed at record highs, with the Canadian benchmark achieving its largest weekly gain in four months. • Market optimism is driven by strong corporate performance, as 85.1% of the 436 S&P 500 companies reporting results so far have exceeded analyst expectations, surpassing the historical average of 68%. • This rally persists despite contradictory economic signals, including weak job numbers and higher inflation, which typically suggest a need for rate hikes rather than cuts.