IMF cuts global growth forecast: Midday Roundup

The International Monetary Fund has cut its 2014 growth rates for both the global and Chinese economy, according to the organisation’s latest World Economic Outlook.

“Weaker growth prospects and new risks raise new challenges to global growth and employment, and global rebalancing,” the IMF warned.

China is Australia’s largest trading partner.

The IMF said the downgrade is due to “appreciably weaker” domestic demand, and slower growth in key market economies.

The world growth forecast for 2013 has been cut to 3.1%, and to 3.8% for 2014.

“Downside risks to global growth prospects still dominate,” the IMF warned.

“While old risks remain, new risks have emerged, including the possibility of a longer growth slowdown in emerging market economies, especially given risks of lower potential growth, slowing credit, and possibly tighter financial conditions.”

ACCC accepts undertaking from Lumo Energy

Lumo Energy has provided a court enforceable undertaking to the Australian Competition and Consumer Commission regarding the conduct of its door-to-door sales agents.

The ACCC found that Lumo Energy breached consumer law at least four times as its agents did not advise customers that a sales agent’s purpose in calling on the consumer was to sell them products from Lumo.

It also found sales agents did not say they would be obliged to leave immediately on request.

“The ACCC has previously put energy retailers on notice that it is closely watching their use of door-to-door sales. Consumer protection in the energy sector is a priority area due to the large number of complaints and the considerable detriment caused by the conduct of some salespeople at the door,” ACCC acting chair Delia Rickard said in a statement.

Lumo Energy has entered a three-year court enforceable undertaking in relation to the findings.

Shares rise on strong offshore leads

The Australian sharemarket has opened higher this morning, following solid gains in the United States where the earnings season has begun.

The benchmark S&P/ASX200 index was up 61 points or 1.3% to 4943.4 at 12.00 AEST, while in the United States the Dow Jones Industrial Average rose 75 points or 0.5% to 15,300.3.