FEAR & GREED | Business News The Week Ahead | 9 June 2025
Jun 9, 2025
The podcast dives into the latest GDP figures, revealing a disappointing economic outlook driven by tight interest rates. Tensions between Elon Musk and Donald Trump are explored, highlighting their impact on market confidence and consumer sentiment. The hosts discuss how political conflicts can ripple through the economy, shaping public perception in significant ways. Listeners gain insights into what to watch for in the upcoming week regarding economic indicators and their potential implications.
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Australia's Sluggish GDP Growth
- Australia's GDP growth was only 0.2% last quarter, far below expectations and RBA forecasts.
- The annual growth rate remains below 2%, roughly half the ideal 2.5-2.75% needed for healthy economy expansion.
Interest Rates Constrain Growth
- The main reason for Australia's slow growth is overly tight interest rates, not government spending or external factors.
- Weak GDP and household spending data have caused markets to price in about 100 basis points of rate cuts by early 2026.
Musk and Trump Public Feud
- Elon Musk and Donald Trump's public spat is escalating on social media, dragging down confidence.
- Such high-profile conflicts add extra downdraft to the economy by damaging animal spirits and market confidence.