Consumer Crunch: Australia Briefing

Good morning, it’s Ed here in Sydney. Here’s the news you need to start your day...

Today’s must-reads:
• Consumer spending in focus this earnings season
• Fitch strips US of top credit rating
• Climate activists target Woodside CEO

Market watchers are expecting lackluster results this earnings season as companies and consumers weather the central bank’s tightening campaign and mining companies face waning demand from China. The bank and miner-heavy S&P/ASX 200 Index is trailing the regional stock benchmark as investors flock to technology shares. Meanwhile, Bloomberg Economics predicts the RBA may be done with hiking rates after holding yesterday.

New Zealand house prices posted their smallest monthly decline since January, adding to signs that an 18-month property market slump could be in its final stages. The moderating pace of price declines and the central bank’s signal that the Official Cash Rate is unlikely to rise any further are being seen as a fillip to the property market, which has dropped 13% from its peak, according to CoreLogic.

Woodside Energy said activists trespassed at the home of CEO Meg O’Neill, in an apparent escalation of protests over a natural gas project. Police have arrested two men aged 31 and 34 and a 19-year-old woman in connection with the incident, local media reported. Meanwhile Fortescue Metals founder Andrew Forrest said he will pull his investments out of the UK if the government backs fossil fuels, after Prime Minister Rishi Sunak committed to granting hundreds of new licenses for oil and gas production in the North Sea.

The Great Barrier Reef is under serious threat from climate change and agriculture but won’t be recommended for inclusion on the “in danger” list this year by the UN’s world heritage body. Unesco said progress by the Australian government on tackling carbon emissions and improving water quality meant further evaluation was needed before the site was added to the list.