westpac decision to raise mortgage will likely delay any further tightening from the rba when it meetses have been at a record low for two years now. we will discuss all of that. with the decision to raise rates on mortgages, the rest of the bank lenders are expected to follow weekly. >> they might -- although quickly. >> they might take a while. funding costs are up for australia's banks, and what might be more exposed to others, if we want to take a look, we have a chart to show on the basis swaps. basis swaps are the main cost for australian banks when they borrow abroad and bring the money back into australia, and as you can see, they have surged recently. the australian dollar has dropped. that feeds directly into the bank's costs. westpac, one of the more exposed, but they are all pretty exposed to overseas funding costs, they have responded by posting rates up. we have another chart you on funding costs. this is the funding cost inside australia. it has remained very elevated, so we can see we are relative to the cash rate and what is more, even as expectations for the rba rate

westpac as markets before we go, this is where they are trading in asia right now.ng what happened on wall street overnight when we saw flat markets as well, lingering concerns about the trade war between the us and china. that is it for the programme. thanks for watching. this is bbc news. the top stories this hour: russia stages what it claims is the biggest military exercises since the soviet era, and for the first time, chinese troops are joining in. america's east coast prepares for hurricane florence. the category four storm heads towards the carolina's, with winds of 225 kilometres an hour. wages grew faster than expected in the 3 months tojuly, as they continue to outstrip the cost of living for the fourth month in succession. official statistics show that pay, excluding bonuses, rose by 2.9% during the period while unemployment has continued to fall remaining at its lowest level for over 40 years, as our economics correspondent andy verity reports. the firm that runs this construction site in salford has no shortage of work. but a shortage of skilled worker

and wool form the largest private—sector employer in the country and according to research company westpacounted for $8 billion in exports, that's around 4% of gdp. but two years on, the wool industry is in crisis, hit by falling demand and lower sales. 0ne business group tried to raise new awareness for wool by making it cool again by holding an annual fashion event, but it's a tough time for farmers as exports are expected to fall to its lowest volume in nearly 100 years since the first world war. new zealand's ministerfor since the first world war. new zealand's minister for the raid since the first world war. new zealand's ministerfor the raid and export growth david 0'connor zealand's ministerfor the raid and export growth david o'connor said pa rt export growth david o'connor said part of the problem is they've done a poorjob of promoting wool in the country —— for trade. it's a natural product at a time when people are trying to wean themselves off petrochemical based products, we will... it's been an old—fashioned product, many see that, but with new technologies there are new oppo

westpac is adding to the downside outlook for the aussie.ing chinese inflation data is due at 9:30. they are expected to moderate to 4%. we have the final read on japanese gdp data in 20 minutes. becca put japanese bond traders in play. put japanese bond traders in play. moonves is departing as chairman and ceo of cbs. when it comes to its agreement with national amusements, they have agreed to dismiss pending litigation. we saw shareholders trying to negotiate a resolution a going to trial next month. we are seeing some clarity over the viacom and cbs drama that has been playing out. it has been a quick moving story. reportthe new new yorker talking about another six women potentially coming out and accusing les moonves of sexual misconduct on top of the first six he had been negotiating the exit settlement four. some clarity at last. and there iss out a new president and acting ceo who has quite a task ahead of him to try to rebuild morale. >> let's talk about president trump and his threats to double down on china. our next guest says the