(14 December 2019, AFR, p27, Sue Mitchell, Senior Reporter) ‘Black Friday boosted traffic online and in stores and the growth has continued into December, but may lead to soft clearance sales on Boxing Day and in January. According to analysis by Citigroup, online traffic for major Australian retailers rose about 30 per cent to 40 … Continue reading
(14 December 2019, AFR, p14, Jacob Greber and Michael Smith) ‘Washington/Shanghai | Hopes are rising among investors, corporate capex managers and consumers that US and Chinese negotiators have agreed to a modest starter deal to halt a bruising trade war that has roiled the global economy and dented confidence. More than eight weeks after US … Continue reading
(14 December 2019, AFR, p12, Hans van Leeuwen, Europe correspondent) ‘London | British Prime Minister Boris Johnson has won a mandate to deliver Brexit in the next seven weeks, storming dozens of long-term Labour seats across the country’s post-industrial north as Opposition Leader Jeremy Corbyn’s radical, big-spending pitch fell flat.’ Read more at AFR.com (might … Continue reading
(14 December 2019, AFR, p3, Bo Seo, Reporter) ‘There is an 80 per cent likelihood that temperatures across Australia will be higher than usual through to March, exacerbating bushfire risk and increasing the frequency of heatwaves. Temperatures in Western Australia exceeded 40 degrees on Thursday, fuelling a massive blaze in Two Rocks, 60 kilometres north of … Continue reading
(14 December 2019, AFR, p1, Sarah Turner, Hans van Leeuwen, Phillip Coorey and John Kehoe) ‘A landslide Conservative victory in Britain’s Brexit election and a potential trade deal between the US and China have delivered a double helping of good news for the global economy. UK voters handed Prime Minister Boris Johnson a handsome victory … Continue reading
(13 December 2019, AFR, p27, James Politi) ‘Washington | Jamie Dimon, the chief executive of JPMorgan Chase, has warned Donald Trump that imposing tariffs on additional Chinese goods would inflict damage to the US economy, as the US president faces a decision within days on whether to impose new levies on Beijing. Speaking at the … Continue reading
(13 December 2019, AFR, p14, Michael Smith, China Correspondent) ‘Shanghai | China’s chief government forecaster has predicted lower steel demand in 2020, the first decline in five years and possibly bad news for Australian iron ore miners. The China Metallurgical Industry Planning and Research Institute said on Thursday that the country’s steel demand would fall by … Continue reading
(13 December 2019, AFR, p14, Michael Smith, China Correspondent) ‘Shanghai | Hopes are fading that the United States and China will agree on a “phase one” trade deal before Christmas, but US president Donald Trump is expected to hold fire on the latest wave of tariffs, which were due to be implemented on Sunday. Business … Continue reading
(13 December 2019, AFR, p8, Steven Trask and Jodie Stephens) ‘NSW Treasurer Dominic Perrottet says the NSW economy can’t continue propping up “lazy states” such as Queensland. Mr Perrottet delivered the NSW half-year budget update on Thursday, showing drought and volatility in the housing market had contributed to a $314 million dent in the surplus.’ … Continue reading
(13 December 2019, AFR, p8, Mark Ludlow, Queensland Bureau Chief) ‘The Palaszczuk Labor government is struggling to control spiralling state debt in Queensland which has blown out $1 billion in the past six months. Despite a move by Treasurer Jackie Trad to raid the defined benefits superannuation scheme for public servants to create a new … Continue reading
(13 December 2019, AFR, p8, Patrick Durkin, BOSS Deputy Editor) ‘Victorian Treasurer Tim Pallas has signalled cuts to the public service and vowed to hold the line on wages with the unions, after announcing a $430 million hit to the budget caused by a half-billion-dollar write-down in GST receipts from the Commonwealth. Mr Pallas said … Continue reading
(12 December 2019, AFR, p28, Elizabeth Howcroft, Lawrence White and Saikat Chatterjee) ‘It is the time of year when London’s bankers and traders wind down and prepare for holidays. Instead, many are cancelling leave and will work all night on Thursday as Britain votes in an unpredictable election that could convulse global markets. Major banks … Continue reading
(12 December 2019, AFR, p11, Matthew Cranston, Economics correspondent) ‘Labor voters over the age of 45 are driving the decline in consumer confidence in December, according to the latest Westpac-Melbourne Institute Index. The overall index declined 1.9 per cent to 95.1 points in December, from 97 in November, but there has been a sharp fall … Continue reading
(11 December 2019, AFR, p32, Nila Sweeney, Reporter) ‘Property prices rose 2.4 per cent in the September quarter– the biggest gain since December 2016 – led by strong growth in Sydney and Melbourne, the latest figures from the Australian Bureau of Statistics show. After falling by 0.5 per cent in the June quarter, Sydney’s home … Continue reading
(11 December 2019, AFR, p14, Russell Lynch) ‘As the World Trade Organisation appeals forum closes its doors, the settling of disputes may get ugly. ‘ ‘London | Bullets have been flying in the world of international trade lately but, as of tomorrow, there’s no longer a sheriff in town. A crisis brewing for years comes … Continue reading
(11 December 2019, AFR, p10, Matthew Cranston and James Eyers) ‘Reserve Bank of Australia governor Philip Lowe has held out hope of a bounceback in consumption, saying on Tuesday that while he was surprised at disappointing spending figures he still expected interest rate cuts will eventually boost them. Household consumption was a very weak 0.1 … Continue reading
(11 December 2019, The Age, p14, By Shane Wright) ‘The national sheep flock is expected to collapse to its smallest size since 1904 amid warnings the drought’s impact on the economy and the agricultural sector will linger for up to a decade. Analysis by the rural forecaster suggests the farm sector is facing its toughest … Continue reading
(10 December 2019, AFR, p36, Michael Smith, China Correspondent) ‘A run on small provincial Chinese lenders has rattled confidence in the world’s biggest banking system — which is wedged between a drive to reduce risky loans, and Beijing’s demands to keep lending to business. ‘ ‘Shanghai | A run by customers on two smaller banks … Continue reading
(10 December 2019, The Age, Business, p21, Stephen Bartholomeusz) ‘When one of the more arcane bits of the global financial system’s plumbing seized up in September the authorities were quick to dismiss it as a one-off event. It’s now clear the meltdown in the US “repo” market was due to circumstances that were more complex … Continue reading
(9 December 2019, AFR, p12, Jacob Greber, United States Correspondent) ‘America’s roaring labour market is on fire. Driven by a vast demographic bulge of Millennials as they enter their prime earning years, employment continues at a blistering pace across the world’s biggest economy. Friday’s official payrolls data showed unemployment is back down to its lowest … Continue reading
(9 December 2019, The Age, p12, By Shane Wright) ‘Australian retailers are preparing for a bleak Christmas with many tipping early sales to get customers through the door after one of the worst years on record. Deloitte Access Economics, in its pre-Christmas look at the retail sector, said a combination of weak wage growth, high … Continue reading
(7 December 2019, AFR, p28, Sarah Turner, Reporter) ‘Investors are fixated on low interest rates but some fund managers are worried that weak profits could turn out to be the market’s Achilles heel – earnings have been missing in action as the benchmark hovers near record highs. Blue chips such as Woolworths, Wesfarmers and Commonwealth … Continue reading
(7 December 2019, AFR, p1, John Kehoe and Matthew Cranston) ‘Subprime mortgage funds are luring tens of thousands of yield-starved retail investors and advertising their “term accounts” like safe bank deposits. Ultra-low interest rates are driving mum and dad investors into subprime mortgage trusts operated by non-bank lender XXXXXXXXX and other fund managers. ‘ <snipped…> … Continue reading
(6 December 2019, AFR, p14, Christoph Rauwald, David Welch and Anurag Kotoky) ‘The industry is sputtering as trade tensions and tariffs raise costs and stifle investment, and as manufacturers reassess their workforce in an era of electrification, autonomous driving and ride-on-demand services. ‘ ‘New York/London/Frankfurt | It’s turning out to be one of the worst … Continue reading
(6 December 2019, AFR, p7, Matthew Cranston, Economics correspondent) ‘Black Friday, Cyber Monday and Christmas retail sales are the new hope for economists after October sales figures showed no growth, adding further concerns about weak consumption and a slow economy.’ <snipped…> ‘Seasonally adjusted retail sales were flat in October, disappointing economists who had expected 0.3 … Continue reading
(5 December 2019, The Age, Business, p23, Stephen Bartholomeusz) ‘Events of the past few days have demonstrated, again, how sensitive financial markets are to Donald Trump’s tweets and comments on tariffs. Those markets have been unsettled by the prospect Trump raised on Tuesday of a deferral of any deal with China until after next year’s … Continue reading
(5 December 2019, The Age, p4, By Eryk Bagshaw and Shane Wright) ‘Australian households have shunned the shops and pocketed most of the Morrison government’s $25 billion in tax cuts, delivering a worse-than-expected result for the national economy and increasing expectations of another interest rate cut. Household consumption rose by just 0.1 per cent through … Continue reading
(4 December 2019, AFR, p39, Adrian Blundell-Wignall, Columnist) ‘Don’t be fooled by Beijng’s fake GDP numbers. The credit-fuelled Chinese economy is bust. Despite what Paul Keating says, concerns about the condition of the Chinese economy, and the potential impact this may have on Australia’s security, are not based on hysteria. The Chinese economy has changed … Continue reading
(4 December 2019, AFR, p34, Faris Mokhtar) ‘Singapore’s developers have expressed alarm over the high supply of private apartments amid slowing demand, with the glut threatening to send property prices lower. President of the Real Estate Developers’ Association of Singapore, Chia Ngiang Hong, said at a dinner on Monday evening that home builders are concerned … Continue reading
(4 December 2019, AFR, p15, Sue Mitchell, Senior Reporter) ‘Retailers are hoping the tide has turned for consumer spending after stronger than expected sales over Black Friday and Cyber Monday and early signs confidence is improving as house prices rebound. Online retailers Amazon and Kogan broke sales records over the four day shopping spree, and … Continue reading
(4 December 2019, AFR, p12, Lucia Mutikani) ‘Washington | US factory activity contracted further in November amid a slump in new orders while construction spending unexpectedly fell, offering cautionary notes on an economy that had recently shown signs of growing at a moderate pace. The reports on Monday (Tuesday AEDT) came on the heels of … Continue reading
(4 December 2019, AFR, p11, Jacob Greber, United States Correspondent) ‘Washington | Australian steel and aluminium exporters have again escaped tariffs after US President Donald Trump announced surprise and immediate imposts on Argentina and Brazil, and threatened to retaliate against France’s digital services tax. The latest trade salvo from Washington demonstrates yet again Mr Trump’s … Continue reading
(4 December 2019, AFR, p6, Matthew Cranston, Economics correspondent) ‘Australia has recorded its second consecutive current account surplus – the first time in 46 years – which is expected to contribute 0.2 of a percentage point to Wednesday’s gross domestic product figures. The current account recorded a $7.9 billion surplus, driven by steady growth in … Continue reading
(4 December 2019, AFR, p6, Matthew Cranston, Economics correspondent) ‘The Reserve Bank says the “upswing in house prices”, particularly in Sydney and Melbourne should support growth and increased spending by consumers. The Reserve Bank has kept official interest rates on hold at 0.75 per cent arguing that more time is needed to see the effects … Continue reading
(4 December 2019, AFR, p6, David Marin-Guzman and Matthew Cranston) ‘A serious downturn in productivity in the construction sector may make it harder for one of the country’s biggest unions to sustain claims for 5 per cent annual wage increases. Labour productivity has turned negative for the first time in 25 years and an analysis … Continue reading
(4 December 2019, The Age, p29, By David Scutt) ‘Market strategists were not surprised by the steep sell-off for local shares on Tuesday. With the benchmark S&P/ASX 200 index trading near record highs after rising about 4 per cent last week, local stocks were vulnerable to any negative news. And that was forthcoming on Tuesday … Continue reading
(3 December 2019, AFR, p32, Nila Sweeney, Reporter) ‘After declining since mid-2014, the Perth property market is finally showing signs of bottoming out, fuelling optimism that a recovery could come earlier than expected. The CoreLogic November Home Value Index showed dwelling prices rising by 0.4 per cent to $437,080 for the month, boosted by low … Continue reading
(3 December 2019, AFR, p31, Michael Bleby, Senior Reporter) ‘The outlook for new housing developments continues to worsen – the latest official figures show the pipeline of new dwellings fell more than expected in October as the slump in high-rise approvals deepened. New dwelling approvals fell 8 per cent from September to 13,049, while the … Continue reading
(3 December 2019, AFR, p27, Brad Thompson, Reporter) ‘… Official Commonwealth forecaster ABARES has cut its winter grain production estimate from 33.9 million tonnes in September to just 29.4 million tonnes, a fall of 13 per cent in three months, with harvest already over or drawing to a close in many farming regions. The production … Continue reading
(3 December 2019, AFR, p12, Tang Ziyi) ‘Beijing | The rate at which China’s manufacturing activity is growing rose to its highest point in nearly three years in November, driven by rising stocks of purchased items and stronger job creation, a Caixin-sponsored survey showed Monday. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which … Continue reading
(3 December 2019, AFR, p3, Ingrid Fuary-Wagner, Reporter) ‘Economists warn that Australia’s banking regulators will be pressured into introducing a new round of macroprudential tightening measures if the strong and swift surge in house prices continues into the new year. Property prices in Sydney surged 2.7 per cent in November, the highest monthly growth rate … Continue reading
(3 December 2019, AFR, p1, Matthew Cranston, Economics correspondent) ‘The weakest productivity numbers in at least 25 years have unsettled the outlook for an economic recovery, a pick-up in wage growth and a string of budget surpluses predicted by the Morrison government and the Reserve Bank of Australia. Former Productivity Commission chairman Gary Banks said … Continue reading
(3 December 2019, The Age, p25, Stephen Bartholomeusz) ‘As the US and China edge closer to a truce in their trade war, China’s manufacturing activity appears to have bottomed out after six months of shrinking. At the weekend China’s official manufacturing purchasing managers index was released. The November survey produced a reading of 50.2 against … Continue reading
(3 December 2019, The Age, Business, p24, Elizabeth Knight) ‘Residential property prices are on a headline-grabbing tear as monthly growth rates hit a 21-year record on a national basis led by huge gains in Sydney and Melbourne markets which are rising at an annualised rate of 23 per cent. The floodgates have started to open … Continue reading
(3 December 2019, The Age, p16, By Dominic Powell) ‘Black Friday sales at one of Australia’s biggest online retailers almost doubled this year, as shoppers turned out in force despite broader weak-spending and low-consumer-confidence conditions. Online retailer Kogan said sales for last Friday were up over 80 per cent on 2018, coming in just shy … Continue reading
(3 December 2019, The Age, p11, By Darren Gray) ‘The devastating impact of the drought in NSW grain-growing regions has been likened to “Armageddon” as a new report says the double-barrel hit from low rainfall and high temperatures in spring have slashed forecasts for Australia’s 2019 winter crops. The latest report to be released on … Continue reading
(2 December 2019, The Age, Business, p22, By David Scutt) ‘Top fund manager Paul Xiradis has a message for Australian investors: the pessimism that defined the global economy over the past year is probably about to subside. “There are signs growth is stabilising and in some cases improving with interest rates now so low,” Mr … Continue reading
(2 December 2019, AFR, p33, Nick Lenaghan, Property Editor) ‘A far-reaching devaluation of retail property assets, in Australia and around the world, may take years to play out as landlords are forced to accommodate retailers hit by a historic shift in consumption patterns, according to British investment manager Fidelity. In one of the most bearish … Continue reading
(2 December 2019, AFR, p7, Ingrid Fuary-Wagner, Reporter) ‘Demand for real estate held strong over the weekend as auction activity ramped up across the country’s property markets. More than 3000 homes were scheduled to go under the hammer across the capital cities last week, the busiest period since March 2018, according to CoreLogic. It was … Continue reading
(2 December 2019, AFR, p6, Duncan Hughes, Reporter) ‘Sydney, Melbourne, Brisbane and other eastern seaboard cities are shrugging off the property downturn and starting to recover as falling rates and rising confidence boosts supply and sales. But other capitals, such as Adelaide, Perth and Darwin, continue to languish at the bottom of the market as … Continue reading
