Finance News Update, what you need to know

WORLD FINANCE UPDATE:

The Australian dollar is sharply higher after the Reserve Bank held its cash rate steady and gave no clues about its next possible interest rate move.

At 0700 AEST on Wednesday, the local unit was trading at 74.57 US cents, up from 74.35 cents on Tuesday.

And the Australian share market looks set to open lower despite a mixed performance on Wall Street where the S&P 500 ended at its best level since July but the Nasdaq fell.

At 0645 AEST on Wednesday, the share price index was down 16 points at 5,362.

ELSEWHERE:

WASHINGTON - The World Bank has cut its forecast for the global economy this year - again.

WASHINGTON - American workers were less productive again in the January-March quarter, although the decline wasn't as severe as first thought and labour costs climbed at a faster pace than initial estimates.

BEIJING - China has promised to rein in steel production that is flooding global markets and to work with Washington to enforce anti-nuclear sanctions against North Korea, but the two sides ended high-level talks with no announcements of progress on simmering disputes in the South China Sea.

LONDON - Royal Dutch Shell is planning to cut more costs at a faster rate than previously planned as a result of its merger with BG Group Plc this year.

NEW YORK - Ralph Lauren is closing stores, cutting jobs and focusing more on its most popular brands to try to reverse its declining fortunes.

PARIS - French insurance industry association AFA has estimated that the cost of floods which devastated several parts of the country over the past week could range between 900 million euros and 1.4 billion euros ($A1.39 billion and $A2.16 billion).