Crypto News: Rio Tinto muscles in on lithium market

Good morning, it's Georgie here in Sydney. Here's what you need to know today...

Today's must-reads:
• RBNZ lowers cash rate by half a percentage point
• Rio Tinto to buy Arcadium Lithium
• Investors target boomer-linked firms

Rio Tinto has agreed to buy Arcadium Lithium in an all-cash deal valuing the US-listed miner at $6.7 billion, expanding its grip on the battery metal and stepping back into the M&A fray with its biggest deal in 17 years. Arcadium jumped as much as 31% in New York trading on Wednesday, pre-market pricing suggests the firm's Sydney-listed shares will also surge.

Investors are snapping up Australian stocks geared to the nation's cashed-up retirees — think travel and wine — while shunning firms exposed to younger households, in a play on a widening intergenerational wealth divide.

New Zealand's central bank cut interest rates by half a percentage point to 4.75%, stepping up the pace of easing. Policymakers are becoming more concerned about the economic slowdown as unemployment is rising and house prices are falling, with the prolonged period of high borrowing costs curbing demand.

The S&P 500 posted its 44th record this year ahead of Thursday's CPI report. Treasuries retreated, with a 10-year auction drawing mixed demand. The dollar notched its longest winning run in more than two years. Oil and gold declined. Asian equity futures are up.

Israeli Prime Minister Benjamin Netanyahu spoke with US President Joe Biden for the first time in more than a month as Washington seeks to temper Israel's retaliation for last week's missile attack from Iran.

Chinese stocks listed onshore suffered their biggest drop in more than four years as traders grew impatient over the pace of Beijing's stimulus measures and weak holiday-spending data hurt sentiment.

Fed Chair Jerome Powell had some pushback for the 50 basis-point cut last month, with some policymakers favoring a smaller quarter-point reduction, the minutes of the Federal Open Market Committee's Sept. 17-18 meeting show.

• Consumer inflation expectation data at 11:00 a.m. in Sydney
• RBA's Sarah Hunter in a panel discussion in Sydney at 6:45 p.m.

More than three decades after the infamous Perrier recall in 1990, the French brand once again finds itself battling scandal. Its contamination issues are adding to the hurdles facing the $300 billion global water industry as companies grapple with questions of sustainability.

Photographer: Glenn Harvey

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