10 things you need to know this morning in Australia

Picture: Warner Bros

Good morning.

1. Rate cuts are now on the table after the RBA shifted its position on the outlook for domestic interest rates. Yesterday, Philip Lowe said the probability of the next move in Australia’s cash rate is “more evenly balanced”. This is a significant shift from the bank’s previous view that the next move in the cash rate was likely to be higher. UBS now expects the RBA will cut rates twice by the middle of next year. The RBA’s change in tune also saw the Aussie tumble, and it’s now on track to record its largest one-day percentage fall in over two years. At 8am AEDT, it was down 1.65% to 0.7115.

Investing.comAUD/USD Hourly Chart

2. China’s hopes of becoming the world’s largest economy are hitting a major roadblock as new estimates from analysts at JPMorgan reveal the country’s growth potential could slow to 4.5% by 2030. Officials have shifted to stimulus programs, from tax cuts to infrastructure incentives, in an effort to curb the decline.

3. Theresa May is about to force through an avalanche of new Brexit laws, but many of them haven’t gone through proper democratic checks, her opponents have warned. With the Brexit deadline looming, senior MPs told Business Insider that an array of tactics are being used to limit the extent at which the documents can be scrutinise in order to speed up the process and ensure the UK is ready for a potential no-deal Brexit.

4. Russia test-fired an intercontinental ballistic missile on Wednesday. The RS-24 Yars, a solid-fuel missile carrying multiple warheads and equipped with countermeasures, is designed to be launched quickly and to evade missile-defence systems. The test comes amid rising tensions with the US and as a brewing arms race between the two great powers kicks into high gear.

5. The US economy is headed for “20 years of ugliness,” rather than an acute recession to rival the 2008 financial crisis, according to Bob Prince, the co-chief investment officer at Bridgewater Associates – the world’s biggest hedge fund. See why below:

6. Missed US President Donald Trump’s State of the Union address? No worries, here are the 8 key takeaways you need to know.

7. “Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals.” Jack Dorsey has tweet stormed about his love of bitcoin. “I don’t see it as an investment,” he wrote. It’s a “currency.” It’s a strong endorsement for the cryptocurrency that’s had a rough 12 months.

8. NASA’s lunar satellite has photographed China’s lander on the far side of the moon — here’s the first image:

China change 4 moon mission landing site satellite image lunar reconnaissance orbiter lro nasa gsfc asu labelledNASA/GSFC/Arizona State UniversityAn image from NASA’s Lunar Reconnaissance Orbiter that shows the location of China’s Chang’e 4 lander on the far side of the moon.

China landed the first robotic mission on the far side of the moon, called Chang’e 4, on January 3. This photograph was taken on January 30. The image shows the Chang’e 4 spacecraft on the floor of an expansive crater known as Von Kármán crater.

9. Your home can have a big affect your ability to build wealth. According to a researcher who studied 10,000 millionaires, there are three mortgage-related traps homeowners can fall into that ruin their chances of getting rich — here’s what they are.

10. A Chinese bank programmer discovered an ATM loophole that let him withdraw almost $1.5 million in cash. Qin Qisheng discovered the company’s did not properly record withdrawals made around midnight and so began making withdrawals from the ATMs ranging from 5,000 yuan ($AU1,040) to 20,000 yuan ($AU4,200), bringing his total to seven million yuan ($AU1.46 million). Chinese officials have since pressed theft charges against Qisheng and sentenced him to 10-and-a-half years in prison.

BONUS ITEM: If you missed videos of SpaceX test-firing its new Raptor rocket engine for the first time. You must watch this:

The engine is a crucial part of the Starship launch system, which SpaceX hopes will rocket humans to the moon, Mars, and beyond. The future of the company may ride on its performance.

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