The Reserve Bank left official rates on hold at the historic low level of 2.5% with Governor Glenn Stevens warning the strong Aussie dollar could harm growth.
“The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy,” Stevens says.
“Housing and equity markets have strengthened further, trends which should in time be supportive of investment.”
Telstra windfall from Chinese auto IPO
The value of Telstra’s majority stake in Chinese auto sales business Autohome could soon be worth more than $500 million, with the online car classified business filing for a listing on the New York Stock Exchange.
Telstra initially purchased its stake in the company, the largest of its kind in China, when former chief executive Sol Trujillo bought a 55% stake in its former parent company for $76 million in 2008.
The Australian telecommunications giant subsequently increased its stake by an additional 11% for $37 million this year.
“We believe there are opportunities to be explored in various geographies and various industry segments but we need to make sure we are focused on the right assets,” Telstra chief executive David Thodey says.
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BCA urges more gender balance at senior executive levels
The Business Council of Australia has issued a report titled Increasing the Number of Women in Senior Executive Positions, which sets out a goal to see women make up 50% of the executive ranks in Australia’s biggest companies.
“The low representation of women in senior levels of management cannot continue,” BCA president Tony Shepherd says.
“We risk not getting the best talent for the job and women not reaching their true potential. Such a situation is not good for individuals, business or the economy.
The Dow Jones Industrial Average is down 0.06% to 15629.07. The Aussie dollar is down to US94.89 cents.