Australia’s current account deficit recorded its biggest quarterly
improvement in June as booming commodity prices drove a rebound in
exports, reports The Fin Review. But we shelled out a record $16.6 billion in interest
payments to other countries last financial year, amid warnings that
soaring global oil prices could force up interest rates and derail
the economy, reports The Age. Figures from the ABS reveal that the
current account deficit – the trade and cash shortfall with
the rest of the world – improved by $2.4 billion in the June
quarter to $12.6 billion.

Australia’s economic “miracle” has drawn to a significant extent
on the housing sector boom in recent years, says Malcolm Maiden in The Smage. And today’s number confirms that the Reserve Bank board will leave
rates where they are next week, when it holds its monthly meeting,
despite the fact that the elevated oil price is keeping inflation
concerns alive – but if housing continues to decline, the odds on a rate cut by
year-end will shorten.

Westfield, the country’s retail bellwether, has issued a
sobering warning for the economy after revealing that sales
conditions will slow in the next six months, thanks to falling
consumer confidence, reports The SMH.
But despite the warnings, the country’s biggest retail landlord
reported net profit for the six months to June 30 of $1.5 billion.

And The Australian reports that Woolworths may be forced to forgo eight of the
22 supermarkets and development sites it picked up in the $3.3 billion
carve-up of the Foodland Associated acquisition because of ACCC concerns it
will lessen competition in Western Australian and Queensland markets.

And the unusually creative battle between Baycorp Advantage and
Allco Equity Partners is about to go “live,” with all eyes on AEP’s
Peter Yates to see how he responds to Baycorp’s very pragmatic
defence, says Stephen Bartholomeusz in The Smage.

On Wall Street, US stocks closed stronger overnight, closing the month on a positive note even as a surge in oil
prices in August left investors concerned high energy costs will slow
economic growth. The Dow Jones rose 68.78 points to 10,481 – MarketWatch has a full report here.