Face of Nation : Prime Minister Scott Morrison has called for calm ahead of what could be another trying week for financial markets and investors. Global markets suffered wild swings last week as the US-China trade war continued to bite, Chinese and German economic was data was weak, and bond markets signalled a potential US recession. The Australian share market was dragged into the volatility, losing a massive $60 billion during one trading session.
“Australia is not in the trade war but anything that weakens global growth threatens our exports and confidence … we are naturally seeing a fall in the Australian share market,” AMP chief economist Shane Oliver said in a note to clients. Mr Morrison said it is a time for calm heads and measured conversations to de-escalate fears rather than escalate them.
Treasurer Josh Frydenberg also insists the foundations of the Australian economy are strong in the face of domestic and international challenges and is standing firm on the need to retain the aim of a surplus.
Figures last week showed employment growth has continued, which Mr Frydenberg was twice the level of the OECD average. But Labor frontbencher Jason Clare says while the prime minister has made the economy his top priority, “he’s not doing a good job at it”.
He said economic growth is at its weakest since the global financial crisis, the Reserve Bank has had to cut interest rates twice since the election and doesn’t have much further to move. He also points to wage growth being flat and more people being behind in their mortgage repayments than anytime in the last 10 years.
