The local market is trading slightly higher this Friday afternoon with the benchmark ASX200 index up 0.15%.
The Utilities and Consumer Staples sectors are each up 1%, while Industrial and Materials are in the red.
Woolworths is trading 2% higher this afternoon amid news that the supermarket giant’s employees have voted in favour of a 3.75% wage increase, mirroring the Fair Work Commission's annual award rise.
The vote was one of the largest enterprise bargaining agreement (EBA) votes in history, but the campaign in the lead-up was marred by allegations of misinformation and bad faith bargaining.
Almost 100,000 workers at Woolworths participated and 62% of them backed the four-year deal. Despite the support, smaller unions labelled the deal as substandard for workers. The deal offers a base wage of $26.07 per hour from July 1, slightly above the award rate of $25.65 per hour following the Fair Work Commission's minimum wage increase.
The Retail and Fast Food Workers Union contends that the deal is inadequate and accused Woolworths and the SDA of misleading workers.
CPI figures next week
Looking at next week, the main focus of investors will be the monthly consumer price index (CPI) indicator for May on Wednesday. The CPI has been pointing towards a gradual easing in price and wage pressures.
Economists at CBA expect the monthly headline CPI to dip 0.3% in May but the annual growth rate to lift from 3.6% to 3.7% due to ‘unfavourable base effects”.
Westpac has warned that the recent federal and state budgets have made Australia's fiscal impulse significantly larger, adding to inflation risks and potentially delaying interest rate cuts.
Westpac senior economist Pat Bustamante noted that while Australia's economic growth has slowed to a virtual standstill as household budgets are squeezed and the global economy slows, the fiscal stimulus adds to inflation risks, particularly in areas of existing capacity constraints, such as the construction sector.
"If the concerns around persistent price pressures continue, this may add to the risk that interest rate relief is delayed," he said.
We might get more insight into the RBA’s thinking on Thursday, when Governor Andrew Hauser delivers a speech at the A50 Australian Economic Forum.
Five at Five
Dynamic Metals and GWR Group (ASX:GWR)’s Prospect Ridge Magnesium Project advancing with drilling imminent
Dynamic Metals Ltd (ASX:DYM) has confirmed that the Prospect Ridge Magnesite Project in northwest Tasmania is now being advanced with a drilling program planned to start any day now and a scoping study underway.
Strickland Metals reshuffles board with eye to developing Rogozna and Yandal Projects
Strickland Metals Ltd (ASX:STK) has opted to make several board changes upon finalising the 100% acquisition of the Rogozna gold-copper-zinc Project in Serbia, and with a focus on the continued growth of the Yandal Gold Project in WA.
Alkane Resources eyes potential for new gold-copper porphyry deposits at Northern Molong Porphyry Project
The latest results from Alkane Resources Ltd (ASX:ALK, OTC:ALKEF)’s drilling program at its Northern Molong Porphyry Project (NMPP) in central New South Wales have demonstrated the potential for new gold-copper porphyry deposits.
Piedmont Lithium (ASX:PLL, OTC:PLLTL) lauds lithium results up to 25.35 metres at 1.76% lithium from North American Lithium operation
Piedmont Lithium (ASX:PLL, OTC:PLLTL) Inc has celebrated the efforts of its partner Sayona Mining Ltd (ASX:SYA), which completed infill and extensional drilling at the North American Lithium (NAL) operation in Quebec, Canada.
World's largest diabetes conference kicks off in Florida today
Over the next four days, the American Diabetes Association (ADA) will be hosting its 84th Scientific Sessions in Orlando, Florida.
On your six
Sydney launches insect-based food waste upcycling project in New South Wales first
The City of Sydney has teamed up with circular economy solutions company Goterra to trial a new sustainable food waste collection program
One to Watch
Race Oncology partners with George Clinical for RC220 bisantrene trials
Race Oncology Ltd (ASX:RAC, OTC:RAONF) chief medical officer Dr Michelle Rashford joins Proactive’s Meagan Evans to discuss the appointment of global contract research organisation George Clinical International