THE NEWS WRAP: Unemployment our biggest danger, bank chief says

Unemployment is the biggest threat to Australia’s economy and could impact small business credit, the CEO of one of the “big four” banks has warned.

NAB chief Cameron Clyne says that the Australian economy was an “uncertain environment” at present, with any rise in unemployment set to hit mortgages and the likelihood of businesses getting loans.

Chinese inflation rises

Inflation in China rose by more than expected in July, despite frantic government efforts to dampen down prices.

Consumer prices rose by 6.5% in July, compared with the same month last year. The Government has attempted to tackle the problem by raising the cost of borrowing.

UK riots spread

A top London restaurant run by a leading Australian chef was attacked by rioters yesterday as disturbances continued across England.

A 50-strong mob smashed their way into the Ledbury restaurant in Notting Hill and robbed diners before being chased away by staff. The restaurant’s co-owner and chief is Australian Brett Graham.

The brazen attack came as the riots spread from London to other cities in England, including Manchester, Nottingham and Birmingham.

Overnight

The Dow Jones Industrial Average recovered by 429.62 points to 11,239.47. The Australian dollar was up to 103.52 US cents.