THE NEWS WRAP: US stocks plummet

The Federal Government has knocked back a Productivity Commission recommendation that the GST-free threshold for imported goods should be lowered.

A wide-ranging Productivity Commission report that said it agreed with some retailers “in principle” that the threshold needed to be lowered to protect domestic stores from online sales.

However, Assistant Treasurer Bill Shorten ruled out the move, saying that lowering the threshold would be “crazy.”

US stock plummet

Wall Street suffered its biggest drop since the global financial crisis overnight, with investors concerned over the US’ economic position and the ongoing debt problems in Europe.

“There is no reason to buy US cash equities,” says Doreen Mogavero, president of Mogavero Lee & Co. “(Investors have) come to the point where we find out we could be looking at 10 more years of austerity.”

Tobacco industry warning over plain packaging

The tobacco industry has claimed that it will be unable to meet next year’s deadline for introducing plain packaging for all cigarettes.

British American Tobacco Australia chief executive David Crow told MPs that the company won’t be able to switch to the olive green packets by July 1 next year, adding that the situation will result in the market being flooded by illegal cigarettes. 

Overnight

The Dow Jones Industrial average plunged by 4.31% to 11,383.68. The Australian dollar was down to 106.89 US cents.