🦘 Australia’s Per Capita Recession, Bitcoin’s All-Time High Rollercoaster, Elon Dethroned As World’s Richest Man

G’day everyone!

Here’s what we’ve got in store for you today:

• Australia’s Per Capita Recession

• Bitcoin’s All-Time High Rollercoaster

• Elon Dethroned As World’s Richest Man

Let’s have a look at the market snapshot before jumping into the news:

Australia's Economic Slowdown: A Per Capita Recession

Australia's economy hit a speed bump in the last quarter of 2023, growing a mere 0.2% as higher interest rates and living costs weighed down household spending.

Year-on-year, growth stood at 1.5%, the slowest pace since 2000, excluding pandemic years. 

Per capita, GDP even fell by 0.3%, marking the most significant drop since 1991 outside of COVID times.

This slowdown could nudge the Reserve Bank of Australia (RBA) towards easing interest rates in 2024, after a pause in hikes.

The quarter saw government and private business investments outpacing household consumption, which barely budged.

Notably, households are saving more, with the savings ratio climbing to 3.2%, while paring back on discretionary spending.

This conservation amidst high rates and inflation reflects broader economic pressures, suggesting the RBA might pivot to stimulate growth in the near future.

Treasurer Jim Chalmers acknowledges the economy's resilience despite global challenges, emphasizing the ongoing battle against inflation.

With economic growth projected to dip further before a gradual recovery, Australia faces a delicate balancing act between controlling inflation and fostering growth.

Bitcoin's Rollercoaster Ride: All-Time High Followed By Huge Dip

Bitcoin's recent thrill ride to a new record high of over $US69,000, followed by a sharp 14% drop, has the crypto world buzzing. 

Analysts argue this latest surge and subsequent fall isn't just the work of the upcoming 'halvening' but more so due to the embrace of ETFs and shifts in interest rates.

RMIT's Chris Berg points to the volatile nature of Bitcoin, emphasizing its dramatic price changes.

Despite the dip to around $US16,000 post-FTX scandal and other market shocks, Bitcoin has resiliently bounced back, now trading at about $US63,630.

The 'halvening,' where rewards for Bitcoin miners halve, theoretically spurring price hikes due to reduced supply, isn't seen as the main driver this time around.

Instead, the U.S.'s nod to Bitcoin-linked ETFs, including heavyweights like Blackrock, is shaking up the market, offering a more accessible investment path than traditional crypto wallets.

The broader adoption of cryptocurrencies, driven by lower anticipated interest rates and a search for higher yields, aligns with a growing mainstream interest.

Asia, especially, is leading the charge in Bitcoin trading, signaling a global shift towards digital currencies.

Despite the inherent risks and volatility, the cyclical nature of Bitcoin's value continues to attract investors, underscoring its staying power in the financial landscape.

Musk Dethroned by Bezos in Billionaire Tug-of-War

In the ever-dynamic world of billionaires, Elon Musk has lost his crown as the planet's wealthiest individual, with Jeff Bezos of Amazon stealing the spotlight once more.

According to the Bloomberg Billionaires Index, Bezos' fortune now stands at an impressive US$200 billion, edging Musk's US$198 billion. 

This shift comes after Musk witnessed a staggering US$31 billion decrease in his wealth over the past year, contrasted with Bezos' US$23 billion increase. 

The see-saw battle for the title of the world's richest has seen Musk, Bezos, and LVMH's Bernard Arnault trading places, fueled by their respective industries' fortunes.

Earlier setbacks for Musk included a significant court decision invalidating his hefty 2018 Tesla pay package and a notable 24% dip in Tesla shares year-to-date.

Despite these fluctuations, the net worth of the top five global billionaires has surged 114% since 2020, showcasing the immense wealth accumulation at the pinnacle of global finance.

Bankwest Bids Farewell to Brick-and-Mortar Across Western Australia

Bankwest is closing all 60 of its Western Australian branches by October, a significant shift to digital banking that will impact both Perth and regional areas.

This move includes converting 15 regional locations into Commonwealth Bank branches.

Bankwest cites a digital shift, with 97% of transactions now online, as the primary reason for these closures.

The company assures that the 350 staff affected by the shutdown will be offered positions, emphasizing a commitment to maintaining regional employment.

Scott Spittles, a Bankwest spokesperson, highlighted plans to provide bespoke solutions to the roughly 2,000 customers reliant on in-person services, ensuring alternatives through Australia Post sites and CBA's ATM network.

This decision has faced criticism for neglecting those less digital-savvy or without online banking access, such as the elderly or those with disabilities.

Jason Hall from the Finance Sector Union called the move "outrageous," and Bankwest customer David Young voiced concerns over the digital divide, stressing the need for physical banking presence across WA.

That’s All!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, have an awesome day folks!