Crypto News: Australia, New Zealand interest-rate paths diverge

Good morning, it's Harry here in Sydney. We're already halfway through a short week and the news is keeping pace.

Today's must-reads:
• RBA signals rates are on hold for now
• More tropical cyclones are on the way
• Quantum tech startup nets investment

Interest rates are on hold until it's clear inflation is moving sustainably toward target, the latest Reserve Bank of Australia minutes showed, signaling monetary easing remains some way off. But officials in New Zealand are expected to lower borrowing costs on Wednesday.

The number of severe tropical cyclones is set to be above average in Australia this season. That's because of forecasts for warmer-than-average ocean temperatures, according to the Bureau of Meteorology.

Tech startup Q-Ctrl raised $59 million in a funding round, the latest sign of growing interest in possible military applications of quantum science. The Sydney-based firm last year unveiled navigation sensors, a potential counter to growing efforts to block or tamper with GPS systems.

Green hydrogen, touted as a future low-carbon solution, may turn out to be more expensive than hoped, according to a paper by Harvard University researchers. That would limit its utility to effectively replace fossil fuels. Australia is among the nations pushing to make more use of hyrdogen.

Asia-Pacific stocks look set to climb after a tech-led rally in the US. Meanwhile, doubts are growing about the outlook for equities in China amid concerns the nation may not deliver necessary fiscal stimulus.

Hurricane Milton is on track to deal a devastating blow to Florida's vibrant Tampa Bay region, just as residents and businesses were beginning to pick up the pieces from another recent storm, Helene. Investors in so-called catastrophe bonds are girding themselves for substantial losses.

Piles of debris from Hurricane Helene remain uncollected ahead of Hurricane Milton in Treasure Island, near St. Petersburg, on Oct. 7. Photographer: Tristan Wheelock/Bloomberg

A US visit by Israel's defense chief — billed as a chance for the allies to craft a common strategy in a face-off against Iran — has been postponed. An Israeli official cited last-minute objections to the trip by Prime Minister Benjamin Netanyahu.

Ukraine's allies are detecting that President Volodymyr Zelenskiy may be getting ready to adopt a more flexible approach as they look at ways to help bring an end to Russia's war. Ukraine is approaching its third full winter of conflict, and Western support showing signs of flagging.

• New Zealand interest-rate decision, noon Sydney time.

US retailer Home Depot will begin requiring corporate employees to work a full day at one of its stores every quarter, a move it said is aimed at supporting retail staff. Employees, including senior management and remote workers, will have to complete an eight-hour shift beginning in the fourth quarter of this year, according to a memo seen by Bloomberg News.

A Home Depot store in Washington, DC, US, on Monday, Aug. 12, 2024. Photographer: Ting Shen/Bloomberg

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