All the US markets were down overnight, with the Nasdaq leading the charge at -2.2% and the ASX expected to dip when it opens today.
The shaky European markets await the outcome of the French election on Sunday, with polls indicating the country is poised on a knife’s edge to either return a known quantity, centrist incumbent Emmanuel Macron, or hand the reins to the nationalist Marine Le Pen.
Needless to say, stability and predictability are sorely needed in Europe right now.
The pan-European STOXX 600 index slid by 1.5%, the German Dax index lost 1.9% and the UK FTSE index dipped 0.3%, as additional Russian sanctions started to bite.
Meanwhile economists are now firm in the view that there will be an interest rate hike in June. Slow Australian wage growth has probably stayed the RBA’s hand for a few months, in contrast to the US, where the Fed is now warning of a 50-basis-point rise if inflation continues to rise.
Insurance industry reckons with disaster
Following several years of purportedly once-in-a-millennia natural disasters, including bushfires that wiped out thousands of hectares of forest on the east coast of the country and the devastating recent floods in NSW and Queensland, the insurance industry is in for a bit of a shake-up.
In a new report, KPMG warns of a coming “market failure” as larger swathes of the country become uninsurable and major insurers lose customers as premiums climb.
The industry buckled following the 2019-20 bushfires but rebounded the following year. This year looks to be another shocker for the industry, with the rebuild expected to exceed $3 billion.
KPMG's report predicted greater under-insurance in the future and argued that mitigation and prevention should be the targets of funding, rather than recovery after the fact.
Fortescue follows Big Australian into the green
Fortescue Metals Group (ASX:FMG) has raised $2 billion in a green financing offering, of which more than half will be plunged into green projects. These are expected to include a 150MW solar generation component of the Pilbara Energy Connect Project, according to a statement.
The remainder of the amount raised will be used for general corporate purposes.
“Fortescue’s Sustainability Financing Framework recognises the global growth in sustainability and green sources of capital,” said Fortescue chief executive Elizabeth Gaines.
“The successful completion of Fortescue’s inaugural green financing offering demonstrates the company’s passion and commitment to integrate sustainability into all aspects of our business, as we take a global leadership position in the green energy transition.”
ASIC takes aim at finfluencers
ASIC has clamped down on financial advice dispensed on social media by unlicensed people known as ‘finfluencers’.
Millennials and Gen Z social media users are susceptible to the pronouncements of these popular content creators on platforms such as TikTok and Instagram, but the regulator has now moved to slap a $1 million fine or a five-year jail sentence on those providing unregistered financial advice.
The corporate watchdog’s move does not cover cryptocurrency advice, which is also rife on social media, and there are fears finfluencers will simply switch over to crypto, still the Wild West of financial services.