THE NEWS WRAP: Trade deficit blows out to $2 billion
Wednesday, October 3, 2012/
Australia’s trade deficit has topped $2 billion, the worst result since March 2008, with falling prices and the strong Australian dollar blamed for the dip.
The Australian Bureau of Statistics figures showed that the country imported $2.03 billion worth of goods more than it exported in August.
Warnings over property ‘bubble’
There are warnings that Australia’s ‘emergency’ low interest rates could inflate another property bubble that could precede an economic crash.
According to experts cited by The Australian Financial Review, there is a concern that policymakers have concentrated on propping up the mining industry and consumer spending rather than other areas of the economy, such as property.
On Tuesday, the Reserve Bank of Australia cut the cash rate by 25 basis points to 3.25%.
EU unveils new business plan
The European Union has unveiled plans to make it easier for people to start businesses and conduct trade across the 27-nation bloc.
The proposals would enable entrepreneurs to raise cash in different nations and launch new businesses, with the aim of boosting employment and consumer confidence.
The Dow Jones Industrial Average rose 12.25 points, or 0.09%, to 13,494.61. The Australian dollar moved up slightly to US102 cents.