Crypto News: Big banks face earnings headwinds

Good morning, it's Ben here on a warm Canberra morning, here's what's making headlines today.

Today's must-reads:
• Australian lenders face earnings headwinds
• Core inflation falls, but not far enough for cut
• Lithium miner suspends output amid slump

Australian lenders will have to justify their pricey stocks more than ever as they report earnings, now that central bankers are taking away their biggest tailwind. Lower interest rates and increased competition are expected to darken the earnings outlooks of the nation's biggest banks, potentially stalling this year's stock rally. Westpac, NAB and ANZ are due to report full-year results next week.

BHP has been forced to walk back from comments about having "moved on" from its failed Anglo American bid to prevent its hands being tied by the UK takeover panel. BHP Chairman Ken MacKenzie made the comments Wednesday at the company's shareholder meeting in Australia. Anglo shares fell as much as 4.5%, underperforming the wider sector.

Core inflation grew by 3.5% last quarter on an annual basis, new data showed on Wednesday, reinforcing the Reserve Bank of Australia's view that price pressures will take time to dissipate and that monetary policy needs to stay restrictive for the time being. The RBA will release a new round of economic forecasts on Tuesday together with its policy decision.

Lithium miner Pilbara Minerals is suspending output from its Ngungaju processing plant at the Pilgangoora project in Western Australia, as a price downturn squeezes the sector. The ongoing slump in lithium prices and the ramp up of another processing plant at the project were behind the decision, Pilbara said.

The Pilbara Minerals Pilgangoora lithium project in Port Hedland, Western Australia. Photographer: Carla Gottgens/Bloomberg

Australia is expected to get drenched by more intense bursts of heavy rain that threaten to rapidly flood cities and swamp crops, as climate change increases the frequency of extreme weather, according to the country's weather bureau and top scientific research body.

The Australian Prudential Regulation Authority released data showing expenses for superannuation funds for the first time on Wednesday. Australia's largest fund, AustralianSuper, notched up total investment expenses of A$700 million in the 2022-23 financial year, while Australian Retirement Trust, the second biggest, spent A$425 million in that period.

Fintech company Airwallex, which was founded in Australia, is in talks with investors to raise about $200 million in a new funding round to finance its growth, according to people familiar with the matter.

From the boardroom to the workplace, it's been a horrible year for women. And one of the worst places has been Australia, writes Bloomberg Opinion's Andreea Papuc.

A selloff in high-flying chipmakers dragged down stocks, with traders also sifting through corporate earnings and economic data. The S&P 500 fell 0.3%, while the Nasdaq 100 slid 0.8%, driven by a slide in Nvidia and underwhelming results at Advanced Micro Devices. In late hours, Microsoft climbed as revenue beat estimates.

The European Union has decided to send officials to Beijing to hold more talks aimed at finding an alternative to tariffs on electric vehicles from China, according to people familiar with the matter.

A BYD Dolphin electric vehicle (EV) at a BYD showroom in Berlin, Germany. Photographer: Liesa Johannssen/Bloomberg

Former US President Donald Trump is having some success courting Muslim and Arab American voters in the battleground state of Michigan as he pursues the White House once again. Meanwhile, Trump's threat to President Joe Biden's industrial policy has has left some of the giant Asian firms that have already announced US investments sweating.

China's BYD notched up another win over Tesla on Wednesday, reporting quarterly revenue that beat Elon Musk's carmaker for the first time since the pair have gone head-to-head in global electric vehicles sales.

• Australia retail sales for September, trade data for 3Q, 11:30 a.m. (Sydney)

Who makes the best single malt whiskies? Scotland? Japan? Tasmania? Now a new competitor has entered the race — India. Although India is the world's largest whiskey market, until recently Indian single malts were virtually unknown. With domestic whiskey consumption rising hand-in-hand with the country's growing affluence, distilleries are turning out high-quality single malts in quantities available to export—and they're not only gaining traction but also snapping up awards.