Crypto News: RBA grapples with inflation drivers

Morning, it's Harry here with your Wednesday download.

Today's must-reads:
• Top three inflation drivers are beyond RBA's control
• Fortescue is still a staunch China economy cheerleader
• Treasury Wine forks out for luxury California label

Australian inflation is being driven by climate change, geopolitical shocks and government policies — factors typically beyond the RBA's control, boosting the chances of more monetary tightening as soon as next week. Meanwhile, Citi's domestic economics team is fielding questions from clients about "possible political pressure" on the central bank. In New Zealand, the RBNZ said the full impact of its rate hikes is still to be seen.

Chinese demand for Australian iron ore will remain strong despite the nation's disappointing post-pandemic recovery, Fortescue CEO Dino Otranto said Tuesday in an interview with Bloomberg TV at the Imarc conference in Sydney. The miner also has industry-leading plans to completely cut all emissions from its own operations by 2030, with China seen as key to that ambition, he said.

Countries around the world are racing each other to dominate green technologies — the batteries, wind turbines, heat pumps and more needed to combat climate change. But our editorial board writes that this competition could descend into counterproductive trade wars, or it could accelerate progress toward net-zero emissions.

Penfolds-maker Treasury Wine agreed to buy DAOU Vineyards in California for as much as $1 billion to expand the company's stable of US luxury brands.

Australia's biggest pension funds are hunting for more private credit deals as the investments offer a key hedge against inflationary pressures and higher interest rates.

Wall Street's jittery month ended, with the S&P 500 rising overnight, but still notching its longest monthly slide since the onset of the pandemic. The dollar climbed as the yen sank toward a 33-year low after the Bank of Japan made only minor changes to its policy settings.

Israeli airstrikes near a Gaza refugee camp reportedly killed dozens as its army battled Hamas militants deep inside the territory. Hamas pledged to release a number of foreign captives within days, hours after an Israeli official said a deal to get more hostages freed was nowhere in sight. Egypt is set for thousands of aid trucks to cross into Gaza, an official said.

Red Bull heir Mark Mateschitz received a €582 million ($615 million) dividend as his first payment since inheriting the energy-drink empire from his late father last year. The company distributed half of last year's €1.56 billion profit among its shareholders, according to a shareholder resolution published in Austria' corporate registry. Mateschitz owns 49% via his holding company, while the Yoovidhya family in Thailand holds the remaining 51%.

Saudi Arabia is on the brink of hosting the 2034 World Cup, marking another milestone in the kingdom's bid to become a sporting powerhouse. Australia, which looked to be the only potential rival, has decided not to bid for the tournament, according to a statement from its football authority on Tuesday.

• 11:30am: Australia Sept. Building approvals

Xi Jinping urged a women's group to cultivate "childbirth culture" to help bolster the birthrate in China. His comments appeared to emphasize his increasing focus on a more traditional, domestic role for women.

A mother carrying her child on her back walks through a fresh food market in Huizhou, Guangdong province, China, on Tuesday, April 19, 2016. Photographer: Qilai Shen