US POLL: BIDEN DROPS OUT; PC RISK WARNING
President Biden drops out of 2024 race
US President Joe Biden has announced that he will not seek re-election at the November election, becoming the first single-term American President in more than 140 years to decline to re-contest. It is also the first time since Lyndon Johnson in 1968 that a sitting US President has chosen not to seek another term. The Democrats will endorse a new candidate at their national convention in Chicago on August 19-22. As current Vice-President Kamala Harris seeks her party’s nomination, she will need to nominate a running mate to potentially serve as the next Vice-President.
Republicans back Trump-Vance ticket for November poll
Meanwhile, delegates to the Republican National Convention in the US have formally endorsed former President Donald Trump as the party’s candidate in the November Presidential election. The convention, held in Milwaukee in the swing state of Wisconsin, also endorsed Ohio Senator JD (James David) Vance as Mr Trump’s running mate and vice-presidential candidate. Senator Vance was elected to the Senate in 2022, and is a former member of the US Marines Corp who served in Iraq. He is a graduate of Yale Law School and Ohio State University.
PC warns against government intervention on insurance costs
The Federal Government's key economic adviser has warned that government intervention to reduce insurance costs borne by consumers could have negative effects on risk management practices. In a submission to a parliamentary select committee on the impact of climate risk on insurance premiums and availability, the Productivity Commission (PC) says that natural disasters are an inherent part of life in Australia. The PC says lowering the consumer price of insurance without reducing the underlying risks will reduce the incentives for households and businesses to manage their risks. As a result, people could be encouraged to remain in (or relocate to) high-risk locations. Interventions to reduce some consumers’ insurance premiums could also lead to insurers increasing premiums for other customers, and potentially lead to insurers withdrawing from certain markets. The PC recommends that governments increase their investment in natural disaster mitigation works and phase out taxes and other charges on insurance.
Unemployment rate steady – but nationally varied
Australia’s official monthly rate of unemployment has remained steady, rising from four per cent to 4.1 per cent, seasonally-adjusted in June. Figures from the Australian Bureau of Statistics, however, reveal a wide disparity between the states and territories. The official jobless rate remained below four per cent except in Victoria (4.5 per cent) and the Northern Territory (4.6 per cent). The Australian Capital Territory recorded the nation’s lowest rate of unemployment, at three per cent, while Tasmania (3.7 per cent) was the lowest among the six states.
Renewables averaging 40 per cent of electricity supply, says Bowen
Climate Change and Energy Minister Chris Bowen has acknowledged that achieving a target of 82 per cent renewable energy in the electricity grid by 2030 is a “big task”. In an address to the National Press Club, however, Mr Bowen said there had been a 25 per cent increase in renewables in the grid over the last two years; average penetration of renewables had reached just under 40 per cent in the National Electricity Market. Mr Bowen said that in the past 12 months, more than 12.5 gigawatts of generation and storage projects – or enough to power 2.9 million homes - had been approved for grid connection. The Minister said 4,000 kilometres of new transmission lines were required, of which 900 km were complete or well under physical construction.
Defence lifts Primes list to boost export prospects
In a move to bolster defence industry exports, the Federal Government has expanded the number of major defence companies participating in its Global Supply Chain (GSC) program. The number of companies known as Primes will increase from seven to 13, as the Government moves to enhance the scale, competitiveness and sustainability of the defence industry. Defence Industry Minister Pat Conroy said the GSC aimed to integrate Australian businesses into global supply chains; since its inception, the program had delivered 2,450 contracts worth more than $1.9 billion to 258 Australian suppliers. Mr Conroy said exports were strategically important to grow the resilience of the Australian defence industrial base.