The federal government will introduce an east coast gas reservation system that requires producers to sell at least 20 per cent of gas extracted in Australia, to Australians. Energy Minister Chris Bowen said the decision will ensure downward pressure on prices, adding that Australia is the only gas-exporting country in the world without some form of reservation. The system will result in what Bowen called a “modest oversupply” of gas. Resources Minister Madeleine King called it a “historic structural shift” in the Australian gas market. She said the rules will not disturb existing contracts and will only apply to the spot market. Spot gas was about $4 a gigajoule in 2015, before exporting began. It has climbed to as high as $12 a gigajoule in recent years.

This week, the team from Ausbiz, including Juliette Saly and Nadine Blayney, join us on Fear & Greed. Watch live at ausbiz.com.au and sign up for a daily market wrap at ausbiz.co/newsletter 

Listen to today's episode 🎧 

Greed-o-meter

Best and worst performing ASX200 stocks

Source: Trading Economics

Fear & Greed Q+A today

On why interest in space investing is surging

"SpaceX potentially IPOing on the NASDAQ has been a strong driver of interest. But more generally, we're starting to see an ecosystem of companies involved in the space industry making very significant progress.

 

"Many of them are growing their revenue at extraordinary rates. Some are even reaching profitability, which is good to see because this is still quite an emerging industry.

 

"Trading volumes in a lot of these companies have really gone up as well, and that’s a clear indication investors are seeing an investment case for space. There’s been real progress in the key technologies enabling the commercialisation of space, and that’s what’s changed the conversation from science fiction to something much more tangible."

News in brief

Global equity markets surged over the past 36 hours after US President Donld Trump said that a deal with Iran was possible after “very good talks”. US new outlet Axis reported that the deal involves a one-page memorandum with a moratorium on Iranian nuclear enrichment, lifting of sanctions and both sides dropping their attempts to control the Strait of Hormuz.

The financial crimes watchdog, Austrac, has launched an investigation into gaming group Tabcorp, concerned about its ability to detect and stop money laundering.

A boost to the research and development tax break will be a key plank of a productivity package in next week’s federal budget, even as entrepreneurs and investors warn that plans to scrap the 50 per cent capital gains tax discount will be catastrophic for the start-up sector.

Australia’s housing market is on the verge of a downturn as higher interest rates and stretched affordability weighs on demand. It follows several years of strong growth that has left most homeowners somewhat insulated against softer conditions, according to research house Cotality.

Ted Turner, the stylish billionaire who founded CNN, the first 24-hour news channel in the world, has died aged 87. Turner turned his company into one of the biggest US cable-television systems before selling it to Time Warner Inc, in 1996.

Fear-o-meter

Cotality’s Tim Lawless on the housing market

“Sydney and Melbourne are already five months into the early phases of decline, while growth is slowing across the mid-sized capitals. Listings are picking up as demand softens, interest rates are rising while affordability and serviceability pressures are biting

“This [downward price growth] trend has been amplified by seventy-five basis points of rate hikes so far this year and the chance of another hike, or hikes, later in the year.

“Importantly, the market was already slowing well before the hiking cycle commenced, highlighting the downside impact of waning confidence from late last year alongside rising inflation and worsening levels of housing affordability.

"Historically, housing downturns have been relatively short-lived, with all but three capital city downturns over the past 40 years lasting less than 12 months, although the length and magnitude have varied from city to city.” 

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