News

Former U.S. Federal Reserve Governor Larry Lindsey has withdrawn his name from the list of candidates for the next potential chair of the Federal Reserve.

Reserve Bank of Australia (RBA) Governor Bullock said on Friday that services inflation remains a little sticky.

The EUR/USD tumbles below the 1.1600 figure, losing over 0.50% as the US Dollar extended its weekly rally, posting gains of more than 1.70% against a basket of six currencies, the DXY, sponsored by a risk-off mood.

Reserve Bank of Australia Governor Bullock and Assistant Governor (Financial Markets) Christopher Kent are giving testimony in parliament this morning Sydney time

• Bullock says services inflation remains a little sticky
• Labour market still a little bit tight, could be close to balance
• Labour market in a good place
• Consumption is beginning to recover
• Q2 inflation was a little higher than expectations, but moving in right direction
• Must be cautious as the monthly CPI data are volatile
• Dwelling costs and services are a little higher than expected
• Risks are relatively balanced on inflation
• We remain data driven on policy
• Forward indicators of labour market have been broadly stable

more to come

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Background to this …. at its September meeting, the Bank held its cash rate steady at 3.60%, following three cuts earlier in 2025. The decision, while broadly expected, carried a notably “hawkish hold” tone, with the bank flagging risks that inflation in the September quarter might come in stronger than expected. As a result, market bets on a November cut weakened significantly.

• market pricing implies around a 50% chance of a quarter-point reduction in the cash rate at the RBA’s next meeting in November
• close to 60% chance of a cut in December

This article was written by Eamonn Sheridan at investinglive.com.

JP Morgan Chase chief executive Jamie Dimon has warned that US equities face a greater risk of a steep correction than investors currently expect, telling the BBC he is “far more worried than others” about an eventual downturn over the next six months to two years.

Dimon said markets appeared overheated, fuelled by AI optimism and loose fiscal spending, while global uncertainty from geopolitical tensions and re-armament added to risks. “The level of uncertainty should be higher in most people’s minds than normal,” he said.

Although he believes artificial intelligence will ultimately deliver lasting gains, Dimon cautioned that many AI-related investments will “probably be lost,” drawing parallels with the dot-com boom and bust.

On policy and politics, Dimon said he remained “a little worried” about inflation but expected the Federal Reserve to stay independent despite Trump’s repeated attacks on Chair Jerome Powell. He described the US as “a little less reliable” on the world stage, citing global tension and military readiness as new priorities: “We should be stockpiling bullets, guns and bombs.”

Dimon also hinted at progress toward easing US tariffs on India, saying he had spoken with Trump administration officials who were keen to bring India “closer” and roll back penalties linked to its oil trade with Russia.

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Dimon spoke with the BBC a day or so ago, but his comments have caught more interest in recent hours as stocks slid a little. If you are ever in any doubt that stock market moves tend to drive what is seen as intersting in the news, don’t be.

This article was written by Eamonn Sheridan at investinglive.com.

BusinessNZ Manufacturing PMI September 2025: 49.9 …………. close to expansion but no cigar

• prior 49.9

New Zealand’s Performance of Manufacturing Index (PMI) was unchanged at 49.9 in September, signalling continued contraction and a lack of momentum in the sector. The PMI averaged 50.9 in Q3, only marginally better than Q2’s 49.9, underscoring that the recovery remains tentative despite forecasts for a Q3 rebound.

The details were mixed:

• production rose slightly to 50.1
• but new orders slipped to 50.3, erasing the prior month’s strength
• Four of the five sub-indices are hovering near the neutral 50 level.

The latest QSBO showed manufacturers pessimistic about recent output but more upbeat about the next three months, suggesting tentative signs of a turning point.

Employment remains the weak spot, with the PMI jobs index falling to 47.5, consistent with further labour shedding even as hiring expectations in other surveys show some optimism.

The Reserve Bank of New Zealand’s 50 basis-point rate cut this week, taking the Official Cash Rate to 2.5%, and an expected final 25 bp cut in November should support the sector, though manufacturing activity still looks soft relative to hopes for a stronger H2 recovery.

This article was written by Eamonn Sheridan at investinglive.com.

New Zealand Business NZ PMI remains unchanged at 49.9 in September

New York Times report

The US Bureau of Labor Statistics plans to publish the September Consumer Price Index report even amid the ongoing government shutdown, though the release date will likely shift from the original October 15 schedule.

Info comes via a NYT reporter, Ben Casselman. He adds:

• The decision reflects the importance of September inflation data in determining the annual Social Security cost-of-living adjustment (COLA), which is calculated using third-quarter CPI figures. A prolonged delay would risk postponing the COLA announcement that affects millions of retirees.

This article was written by Eamonn Sheridan at investinglive.com.

South Korea FX Reserves climbed from previous 416.29B to 422.02B in September

New York Attorney General Letitia James previously sued President Trump in a civil case that led to him and his company being held liable for business fraud.