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Asia stocks slide as Powell comments quell rate peak bets

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39

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Asia stocks slide as Powell comments quell rate peak bets

Asian stocks fell to their lowest in a week on Friday, while the dollar was steady as elevated Treasury yields weighed on sentiment after hawkish comments from US Fed Chair Jerome Powell dashed expectations of a peak in interest rates.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39, on track for a fourth session of losses and a weekly decline of 0.5%.

The sombre mood is set to continue as Europe wakes up, with futures indicating a steeply lower open. Eurostoxx 50 futures were down 0.73%, German DAX futures dropped 0.66% and FTSE futures were 0.78% lower.

US Federal Reserve officials including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.

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The Fed is “committed to … monetary policy that is sufficiently restrictive to bring inflation down to 2% over time,” Powell said at an International Monetary Fund event.

“We are not confident that we have achieved such a stance.”

Powell’s comments along with a weak auction of $24 billion in 30-year Treasuries pushed yields higher, casting a shadow on equities and providing support to the dollar.

“There is no point in corralling the market into expecting cuts until shortly before they look necessary,” said Rob Carnell, Asia-Pacific head of research at ING.

Investors have been looking for signs of US interest rates peaking after the Fed held rates steady last week, a move that bolstered speculation that the rate hiking cycle was over, leading to a short-lived rally in risky assets.

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Some investors said Powell’s hawkish leaning on Thursday may have been the result of a recent loosening of financial conditions that has come as yields have tumbled in recent weeks.

ING’s Carnell said the Fed needs to keep rates and bond yields reasonably high to achieve the tighter financial conditions that will bring about lower inflation and enable the Fed to ultimately cut rates.

“That rhetoric has to continue, ‘we’re not definitely finished, there’s still a chance of more’ … (you) do that right up until the day before you cut,” he said.

The three major US stock indices closed lower on Thursday, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years as market optimism over looser monetary policy faded.

US rate futures have priced in about 60% chance of a rate cut at the Fed’s June 2024 meeting, according to the CME’s FedWatch tool, compared to odds of about 70% before Powell’s speech.

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Chinese stocks eased 0.6%, while Hong Kong’s Hang Seng Index was 1.6% lower as worries over the world’s second-biggest economy resurfaced after data on Thursday showed consumer prices dipped back into contraction.

Tapas Strickland, head of market economics at NAB, said the data keeps the pressure on Beijing to continue with its incremental easing in monetary and fiscal policy.

The yield on 10-year Treasury notes eased 1.2 basis points to 4.618%, having gained 12 basis points on Thursday, their largest one-day gain in three weeks.

In the currency market, the dollar index held on to its overnight gains and was last at 105.89. The dollar stood near a one-year high at 151.40 yen and touched one-week highs against the Australian and New Zealand dollars.

US crude rose 0.38% to $76.03 per barrel and Brent was at $80.39, up 0.47% on the day. The oil market has been reeling this week on demand concerns, with a fading war-risk premium triggering a sell-off.

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Spot gold was little changed at $1,956.80 per ounce and on track for their worst week in more than a month, down 1.8%, as elevated yield and stronger dollar weighed.

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Australia’s richest woman demands gallery remove unflattering portrait

Australia’s richest woman demands gallery remove unflattering portrait

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Australia's richest woman demands gallery remove unflattering portrait

Australia’s richest person Gina Rinehart has demanded the country’s National Gallery to remove a seemingly unflattering portrait of her from display.

Rinehart, 70, is the Executive Chairwoman of Hancock Prospecting, a privately owned mineral exploration and extraction company, and is worth an estimated $30.6bn (£15.9bn).

The award-winning Aboriginal artist Vincent Namatjira included Rinehart in his current large-scale exhibition at the National Gallery of Australia, along with the late Queen Elizabeth II, Jimi Hendrix and football player Adam Goode.

However, Rinehart is seemingly unimpressed with Namatjira’s depiction of her and has lobbied to have it hidden from view.

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The painted image features Rinehart looking straight towards the viewer, with her features distorted in Namatjira’s signature style, as well as including a double chin.

According to Financial Review, several of Rinehart’s associates have sent strongly worded messages to the gallery, with the campaign said to have been quietly discussed in political circles.

However, the Canberra-based National Gallery has declined the request from Rinehart’s camp, with director Nick Mitzevich stating that he “welcomes the public having a dialogue on our collection and displays”.

“Since 1973, when the National Gallery acquired Jackson Pollock’s Blue Poles, there has been a dynamic discussion on the artistic merits of works in the national collection, and/or on display at the gallery,” he said in a statement.

“We present works of art to the Australian public to inspire people to explore, experience and learn about art.”

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The Independent has reached out to representatives of Gina Rinehart for comment.

On social media, some have commented that Rinehart’s attempt to hide the portrait from view has resulted in it receiving more attention.

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Paul McCartney becomes UK’s first billionaire musician

Paul McCartney becomes UK’s first billionaire musician

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Paul McCartney becomes UK's first billionaire musician

Music icon Paul McCartney has become the UK’s first billionaire musician, according to the Sunday Times Rich List published Friday, despite the country recording its largest fall in the billionaire count in the guide’s 36-year history.

The 81-year-old’s fortune was boosted by “strong touring, a valuable back catalogue and even a little help from Beyoncé”, who covered the Beatles song “Blackbird”, said the Rich List, considered the definitive guide of the UK’s wealthy.

McCartney, whose net worth was estimated at £1.0 billion ($1.26 billion), has bucked the trend, with the amount of billionaires in the UK falling from a peak of 177 in 2022 to 165 this year.

This is partly due to plans by the government to scrap the “non-dom tax status” from next year, the system whereby people do not pay UK tax on their overseas earnings.

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“Non-dom” has been a political issue for many years, with Prime Minister Rishi Sunak’s Indian wife Akshata Murty claiming the status, meaning she was not required to pay tax on her shareholding in Infosys, the Bangalore-based IT company co-founded by her father.

However, she said she would pay UK tax on that income after coming under political pressure.

That move has not hit the family’s fortune, with the couple seeing their shares grow in value by £108.8 million to nearly £590 million over the past year, giving the couple a net worth of £615 million, according to the list of 350 individuals and families.

King Charles III’s personal wealth was also estimated to have risen by £10 million to £610 million, thanks to a boost in the net worth of his properties.

Those faring less well include chemicals tycoon Jim Ratcliffe, who bought a stake in Manchester United earlier this year, inventor James Dyson and Virgin entrepreneur Richard Branson, who all saw their multi-billion pound fortunes decrease.

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The list is topped by Indian-born investor Gopi Hinduja and his family for a third successive year. The head of the Indian conglomerate Hinduja Group has an estimated fortune of £37 billion. 

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Costner, Gere, Demi Moore: Hollywood icons on Cannes comeback trail

Costner, Gere, Demi Moore: Hollywood icons on Cannes comeback trail

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Costner, Gere, Demi Moore: Hollywood icons on Cannes comeback trail

This year’s Cannes Film Festival hosts a trio of heartthrobs from the back end of the 20th century, making their comeback on the red carpet: Demi Moore, Kevin Costner and Richard Gere.

From “Ghost” to “Pretty Woman” to “Dances with Wolves”, they are responsible for some of Generation X’s favourite movie moments. AFP looks at what they’ve been up to since.

Demi Moore: ghost girl

On the Croisette, 61-year-old Moore will be making her unexpected return in slasher-horror “The Substance”, competing for the festival’s top prize, the Palme d’Or.

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It has been a long time since Moore came anywhere near a Cannes red carpet, having appeared mostly in small TV roles and forgettable films since the early 2000s.

In her heyday, Moore was a global star after the weepie “Ghost” co-starring the late Patrick Swayze as a murdered businessman who watches over his grieving ceramicist girlfriend from beyond the grave and famously helps her mould clay in a steamy supernatural scene.

Her baggy, androgynous look in that movie — the dungarees and boyish crop — helped define 1990s style, and she had other era-defining hits with steamy dramas “Indecent Proposal” and “Disclosure”.

An Annie Leibovitz photoshoot — showing off her pregnant belly on the cover of Vanity Fair in 1991 — was a stunning move at the time, since copied by Beyonce, Rihanna and others.

She proved her acting chops in meatier 1990s movies such as blockbuster courtroom drama “A Few Good Men” opposite Tom Cruise and Jack Nicholson.

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But since the turn of the century, Moore, who has a life-long passion for collecting dolls and bought an entire house to store her 2,000-strong collection, was in the headlines more for her tumultuous love life than her acting.

She formed two Hollywood power couples, first in the 1980s with “Die Hard” star Bruce Willis, father of her three daughters, and then with Ashton Kutcher, the latter union ending acrimoniously in 2013.

Kevin Costner: forever West

The soft-spoken 69-year-old is back in Cannes in his favourite genre, the Western, with the epic “Horizon: An American Saga”.

Fans are hoping his fourth feature as director — which is out of competition at Cannes — will mark a return to form after a series of expensive duds in the 1990s trashed his Oscar-gilded career.

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His directorial debut “Dances With Wolves”, despite being a three-hour Western, was a global hit and in 1991 won the double Oscar whammy of best picture and director.

As an actor he captured hearts in smash hits “Robin Hood: Prince of Thieves” (1991) and as Whitney Houston’s protector in “The Bodyguard” (1992).

Teaming up with big-gun directors also proved a winning formula, from Oliver Stone’s “JFK” (1991) to Clint Eastwood’s “A Perfect World” (1993).

But then a string of ultra-expensive and hubristic flops — especially “Waterworld” (1995) and “The Postman” (1997) made him into something of a laughing stock.

He continued to work in smaller roles, but invested more in music with his nostalgic country band “Kevin Costner & Modern West”. There has been a late resurgence in his 60s, however, thanks to the long-running hit neo-Western series, “Yellowstone”.

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Richard Gere: zen charm

Gere was the world’s sexiest man according to People Magazine in 1999, when he was 50. By then he had charmed audiences with his quiet seduction in “An Officer and a Gentleman” (1982) and, of course, “Pretty Woman” opposite Julia Roberts.

He and supermodel Cindy Crawford were also the ultimate It-couple. But progressively he gave up glamour for meditation.

Gere had been a Buddhist since he was 25, and increasingly used his fame to speak out, in particular against China’s control of Tibet.

He developed a close friendship with the Dalai Lama and gave a fiery speech against China at the 1993 Oscars that got him barred from future ceremonies.

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It also cost him movie roles in the 2000s as Hollywood sought to tap the vast Chinese market.

For his Cannes comeback, the 74-year-old has reunited with Paul Schrader — who directed him in dark cult favourite “American Gigolo” (1980) — for “Oh, Canada”, playing a Vietnam War draft-evader haunted by his past. 

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