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ASX to slide as Labor pledges to cut energy bills by $275 a year

·2-min read
ASX and power line
ASX tipped to fall as Labor Government sticks to its commitment to lower energy bills by hundreds a year. (Source: Getty)

ASX: The local market is poised to slide after a mixed finish to the week on Wall Street.

Wall Street: US markets closed with a modest bounce but still suffered the biggest weekly percentage decline in months as investors wrestled with the growing likelihood of a recession as global central banks try to stamp out inflation.

Wall Street will be closed on Monday, with markets observing Juneteenth for the first time.

Flying high: Qantas Airways and Virgin Australia have not seen any dent in domestic bookings from higher inflation and interest rates, but fares must rise to help the airlines recover some of the cost of elevated oil prices, their chief executives say.

Biofuels: Meanwhile, Qantas and Airbus will invest close to $300 million to accelerate Australia's sustainable aviation fuel industry.

Biofuels cut greenhouse gas emissions by around 80 per cent compared to traditional jet fuel, but Australia is yet to produce its own sustainable fuel.

Clean industry: Australia's heavy industries have joined forces to devise a $100 billion plan to go green amid global pressure to respond more rapidly to climate change.

An 88 per cent cut to carbon emissions is possible across refineries, pipelines and steelworks, from the Pilbara and Kwinana in the west to the NSW Hunter and Illawarra, and Gladstone in Queensland, according to new research released on Monday.

Energy prices: The Labor Government is standing by the modelling it took to the May federal election promising to slash electricity bills by $275 a year.

The renewed pledge came after a week of turmoil in the energy market, which forced the key regulator - the Australian Energy Market Operator - to take over the power grid to guarantee supply.

Capacity mechanism: Coal-fired power plants and new renewable assets would be eligible for payments under a draft "capacity mechanism" put to energy ministers.

Generators would get a "capacity payment" and customers would not pay more for the same service, under the plan prepared for Federal Energy Minister Chris Bowen and his state and territory counterparts.

Shopping slowdown: Retailers can expect a slowdown in activity from the second half of this year as cost-of-living pressures and higher interest rates restrain spending.

In its quarterly Retail Forecasts report, Deloitte Access Economics said the majority of retail turnover growth over the next few years was likely to be driven by prices rather than volumes.

-With AAP

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