Finance News Update, what you need to know

Finance News Update, what you need to know

WORLD FINANCE UPDATE:

The Australian dollar is weaker after the US Federal Reserve again said it expected to raise interest rates in coming months.

At 0700 AEST on Monday, the local unit was trading at 71.78 US cents, down from 72.21 cents on Friday.

And the Australian share market looks set to open higher after Wall Street capped off its strongest week since March after US Federal Reserve Chair Janet Yellen said an interest rate rise would likely be appropriate "in the coming months".

At 0645 AEST on Monday, the share price index was up 23 points at 5,433.

ELSEWHERE:

CAMBRIDGE, Massachusetts - The Federal Reserve should raise interest rates "in the coming months" if the economy picks up as expected and jobs continue to be generated, US central bank chief Janet Yellen says, bolstering the case for a rate increase in June or July.

WASHINGTON - US economic growth slowed in the first quarter although not as sharply as initially thought, amid a surge in spending on home building and a steady increase in inventory investment by businesses.

WASHINGTON - Americans turned more optimistic about the economy in May than the previous month, buoyed by low interest rates on home and car purchases.

KIEV - Ukraine has filed its defence with a British court over a $US3 billion ($A4 billion) debt to Russia, arguing that the original loan agreement with its neighbour and former ally is invalid, the Foreign Ministry and Finance Ministry have said.

WELLINGTON - The process of changing the rules dairy giant Fonterra must follow in New Zealand is gaining momentum with the release of a discussion paper which should lead to a bill in parliament this year.

PARIS - France will "go all the way" to ensure that multinationals operating on its soil pay their taxes and more cases could follow after Google and McDonald's were targeted by tax raids.

BANGKOK - Australian goldminer, Kingsgate Consolidated Ltd's Thai offshoot, facing closure over its Thai mine, is threatened by a multi-million dollar compensation lawsuit by local residents.

LONDON - Nine out of 10 of Britain's top economists working in London's City financial district, small business and academia believe the economy will be harmed if Britain leaves the European Union, a poll shows.


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Source: AAP



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