Crypto News: Treasurer Chalmers heads to China

Good morning, it's Georgie here in Sydney with this morning's top news for you.

Today's must-reads:
• Chalmers starts China trip
• Monthly inflation eases
• Iron ore rallies

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Treasurer Jim Chalmers will begin a two-day visit to China Thursday, the first by the nation's top economic decision-maker in seven years. He will meet with his counterparts as concerns grow over a slowdown in the country's top trading partner.

Australia's monthly inflation cooled to 2.7% year on year in August to the lowest in three years, according to a partial gauge. That's the first time since August 2021 that it has fallen below the 3% upper band of the Reserve Bank's target. Government rebates helped drive down power prices.

The federal court has fined Vanguard Investments Australia A$12.9 million for making misleading claims about a fund, the highest penalty issued in the country so far over greenwashing.

Australia approved the expansion of three coal mines, sparking criticism about the government's efforts to keep emissions in check. In other coal mining news, a unit of Coronado sold a rare bond in the dollar market.

Iron ore rallied strongly for a second day in Asia trade on Wednesday, amid speculation that China's mammoth stimulus package would help to bolster demand. Aussie iron ore mining stocks also extended gains.

The S&P 500 declined and Treasury yields rose as investors pondered the future path of interest rates — including a mystery bond trader who made a record futures bet on the Fed's next move.

China said it will give one-off cash handouts to people in extreme poverty before Tuesday, in a rare announcement of direct aid just a day after unveiling a sweeping program to stimulate the world's second-largest economy.

Meanwhile, the Quad alliance is normalizing China's dangerous actions in the South China Sea by not explicitly calling them out, writes Karishma Vaswani for Bloomberg Opinion.

Micron surged 13% after giving surprisingly strong sales and profit forecasts, helped by demand for AI gear. First-quarter revenue will be about $8.7 billion, topping the $8.32 billion estimate, aided by orders for a type of product called high-bandwidth memory.

• August job vacancies data, 11:30 a.m. in Sydney
• RBA Financial Stability Review, 11:30 a.m. in Sydney

Hong Kongers may soon pay less for the hard stuff under a city plan to cut taxes on spirits. Residents need any help they can get to keep costs down, with rents approaching a 2019 historical peak.

Pedestrians in the Lan Kwai Fong nightlife area in Hong Kong. Photographer: Paul Yeung/Bloomberg

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