THE NEWS WRAP: Amazon reports significant profit dip

The Reserve Bank of Australia Governor has warned that it’s unlikely that household spending will return to the “good old days” of pre-GFC levels.

Glenn Stevens said he expects consumers to eventually stop saving and start spending again as sentiment improves. However, he said that things were currently “very tough” for retailers and that the resources-led boom has replaced household spending as the economy’s main driver. 

Amazon in profits dip

Amazon has reported a significant dip in profits, despite its sales soaring by 51% in the previous quarter.

The online retail giant’s net income was down 8% in the June quarter to $191 million, although sales were up to $9.9 billion, bolstered by strong interest in its Kindle product. Amazon said investment in new business opportunities ate into its profit. https://www.bbc.co.uk/news/business-14302319

Soros ends hedge fund career

Billionaire George Soros is to end his 40-year hedge fund career by handing back $1 billion to investors.

His $25.5 billion firm will now focus solely on Soros family investments, according to a letter to investors.

Overnight

The Dow Jones was down 91.50 points to 12,501.30. The Australian dollar jumped to 109.31 US cents.