CORPORATE AND INSTITUTIONAL

The RBA sees Australian QE as unlikely in the near term. Read our analysis.

The surprise news on Friday were reports that the German government might relax some of its spending rules to splash out and prevent a recession.

Technology has already revolutionised back offices at superannuation funds and wealth management businesses, and is soon to transform customer service as well.

The latest escalation in the US-China trade war has reverberated through financial markets. The policy response will be important – we now expect two further 25bp cuts in the fed funds rate this year. China is also likely to use policy measures to offset any tariff impact, including allowing further depreciation of its currency.

An ECB Governing Council member suggests markets hadn’t priced in the extent of the stimulus measures coming next month.

In this month’s FX Podcast, Ray Attrill and Phil Dobbie discuss NAB’s revised outlook for the AUD.

The latest escalation in the US-China trade war – with the US imposing a 10% tariff on most remaining China imports – has reverberated through financial markets.

It’s far from a quiet day in markets.

China’s economy is continuing to slow, even before the latest round of US tariffs (and China’s retaliation), meaning there’s further downside risk.

US dollar NAB’s Non-Rural Commodity Price Index is forecasted to increase by 2.1% yoy in Q3 2019, however underlying trends remain highly mixed. Higher export prices for LNG and iron ore (despite more recent spot price falls) are the key contributors, while both thermal and metallurgical coal are weaker, as are most base metals.

Below-trend growth and low inflation – another rate cut ahead.

There’s been a sharp turnaround in market sentiment as the US announced delays to the extra tariffs on Chinese imports for certain consumer-sensitive products.