(20 May 2017, AFR, p35, Jessica Sier) ‘The prospect of a US presidential impeachment sent shockwaves throughout financial markets this week, though distaste for the big banks was the main weight on the ASX. Investors cautiously bought up mining and telco stocks on Friday, though a pickup in commodity prices wasn’t enough to push the bourse into … Continue reading
(19 May 2017, The Age, p8, Peter Martin) ‘Australians are working less, even as more of us get jobs. The latest labour force figures show an extra 97,400 Australians found work in March and April – 60,000 in March and 37,400 in April. Over the two months taken together, the majority of the new jobs were … Continue reading
(18 May 2017, AFR, p1, 20, by Sue Mitchell) ‘Sydney’s wealthy Lane family has seen the value of its stake in OrotonGroup plunge nearly 20 per cent after a warning earnings would dive 75 per cent this year, pushing the retailer into the red and triggering a strategic review. In its second profit warning in five months, OrotonGroup … Continue reading
(18 May 2017, AFR, p20, by Jemima Whyte) ‘More than $8 billion of potential initial public offerings may be forced to consider trade sales or delay a sharemarket listing as jittery investors apply closer scrutiny to new deals following a slew of patchy floats in the past two years.’ <snipped…> ‘Other floats to burn investors … Continue reading
(18 May 2017, AFR, p15, by Sue Mitchell) ‘Online retail juggernaut Amazon has claimed its first scalp – the $1.5 billion float of office products chain Officeworks – before even setting up shop in Australia. Wesfarmers abandoned plans for an initial public offering of Officeworks on Wednesday after fund managers made it clear they were … Continue reading
(18 May 2017, AFR, p14, by Peter Fish) ‘Two major art auctions on consecutive days in Sydney last week reported more than 80 per cent of lots sold and 90 per cent by value, indicating a general pick-up in the art market after a long hiatus. The Deutscher and Hackett sale on May 10 raised $4.85 million, bringing … Continue reading
(18 May 2017, AFR, p12, by David Fickling) ‘The world’s auto industry just hit a pothole. Car sales in Western Europe fell 6.8 per cent in April, their biggest drop since 2013, as a late Easter and the effects of tax changes sapped demand in the UK, the region’s second-biggest market. Such local difficulties haven’t … Continue reading
(18 May 2017, The Age, p4, Eryk Bagshaw, James Massola) ‘In a triple blow to the Turnbull government, a global ratings agency has cast doubt on the promised return to surplus, consumer confidence has fallen and wage growth has stalled at an all-time low.’ <snipped…> ‘On Wednesday, ratings agency Standard and Poor’s confirmed Australia’s AAA … Continue reading
[COMMENT / LESSON: Some interesting observations from this article are that we should always look to the bigger picture – much bigger – before drawing conclusions. The figures and charts quoted here since 2007 will look very different over different time periods. ALSO, regarding accumulation indexes – that some of the world’s indexes are actually … Continue reading
(17 May 2017, AFR, p8, by John Stensholt) ‘Frank Costa’s Costa Group (ASX:CGC) has been a rare success: a successful ASX listing involving private equity. The fruit and vegetable company, which Costa and Paine Schwartz Partners floated in July 2015, has been trading close to its April record high and its success has given Financial … Continue reading
(17 May 2017, The Age, p1, Eryk Bagshaw) ‘Real wage growth has fallen into negative territory and stalled at an all-time low, figures to be released on Wednesday are expected to show, as workers receive pay rises that have failed to keep up with the cost of living. The dire forecast from Australia’s banks could … Continue reading
(17 May 2017, The Age, BusinessDay, p29) ‘Consumer confidence has tumbled following the federal budget to its lowest level in nearly two years. The ANZ-Roy Morgan Consumer Confidence Index for the week to May 16 slumped 2.6 points to 109.4, which is its lowest level since September 2015.’ Read more at TheAge.com.au
(16 May 2017, AFR, p22, by John McDuling) ‘One of the sorriest episodes in the recent wave of start-up mania in Australia is drawing to its conclusion. And there is much to be learned from it. Late on Friday, in a classic case of taking out the trash when you think nobody’s looking, Gold Cost … Continue reading
(16 May 2017, AFR, p19, by Jessica Sier) ‘You can almost hear the exasperation on Microsoft’s end: we fixed this vulnerability two months ago! If you all updated your security settings in Windows this wouldn’t be a problem! But people didn’t update the patch and now it is a problem.’ Read more at AFR.com (might … Continue reading
(16 May 2017, AFR, p13, by Sue Mitchell) ‘Initial public offerings worth $2.4 billion are at risk as shares in discretionary retailers derate amid concerns about soft consumer spending and the impact of Amazon. Fund managers say proposed initial public offerings for Wesfarmers’ Officeworks, Archer Capital’s Quick Service Restaurant Holdings and Navis Capital Partners’ Retail … Continue reading
(16 May 2017, AFR, p7, by Michael Bleby) ‘Investors shrugged off rising credit constraints in March, as property loans ended more than a year’s worth of falls and rose to their highest level in over 12 months. Australian Bureau of Statistics figures on Monday showed that over the year to March the value of property … Continue reading
(16 May 2017, The Age, BusinessDay, p23, Patrick Hatch) ‘Luxury handbag and fashion accessory retailer Oroton has entered a trading halt as it prepares to reveal that sales have continued to deteriorate. Oroton said in a letter to the ASX on Monday morning that its preliminary earnings figures for April 2017 – an important trading month … Continue reading
(16 May 2017, The Age, p2, Eryk Bagshaw) ‘Home loans to investors have fallen to the lowest level in 10 months following a regulatory clampdown and the Turnbull government’s efforts to cool the Sydney and Melbourne housing market. Figures released by the Australian Bureau of Statistics on Monday show home loans to investors as a … Continue reading
(15 May 2017, AFR, p9, by Su-Lin Tan) ‘New limits to the way expenses can be deducted against negative geared properties will prove a turning point in the investment property market, experts say. The federal government’s “scalpel rather than a sledgehammer” changes to negative gearing announced in last week’s budget will hit investor demand because … Continue reading
(13 May 2017, AFR, p19, by Lindsey Rupp) ‘As Americans abandon department stores, sales at Macy’s Inc and Kohl’s Corp are falling even faster than Wall Street expected. Disappointing results from the two chains sent a broader swath of stocks tumbling in the US this week, with investors growing more pessimistic on the beleaguered industry.’ Read more … Continue reading
(13 May 2017, AFR, p27, Jessica Sier) ‘Shares finished the week flat after news of a new tax on the big four banks weighed on the ASX, offset by a welcome recovery in resources names as the oil price stabilised. Over the week, mining stocks clawed higher, followed closely by energy and consumer staples, while the … Continue reading
(12 May 2017, AFR, p3, by Matthew Cranston) ‘Brisbane apartment builder CMF Projects has called in administrators in what could be the first sign of a shake out in the cooling apartment market. The builder, which has completed at least a dozen high profile apartment projects in Brisbane, is the first builder of any real … Continue reading
(12 May 2017, The Age, BusinessDay, p23, Patrick Katch) ‘Australian retailers will cut the price of electronic goods by about 10 per cent to remain competitive when Amazon arrives on our shores and will lose more than a third of their earnings, market analysts say. CITI analysts said in a note published on Wednesday that the American e-commerce giant appears to sell electronics … Continue reading
(11 May 2017, AFR, p27, by Simon Evans) ‘The managing director of CSR says residential construction markets appear to have peaked, sparking an almost 12 per cent fall in the company’s shares, as investors concluded the record profits generated by its core building products division won’t be repeated. But Rob Sindel, who has been running the company since … Continue reading
(11 May 2017, AFR, p24, by Peter Fish) ‘The mood in the art market is reviving after almost a decade of flatlining annual sales. Evidence of increased dealer activity on behalf of private clients is mounting amid improving sentiment and the evidence of several successful sales this year – culminating in last week’s Sotheby’s Australia sale, … Continue reading
(11 May 2017, AFR, p8, by Patrick Durkin) ‘Senator Derryn Hinch has written to the Australian Federal Police seeking an investigation into news leaking about the $6.2 billion bank levy, which wiped $14 billion off bank shares ahead of the budget. Sky News speculated on Monday night that the government was formulating a plan to levy the … Continue reading
(10 May 2017, AFR, online, by Michael Smith) ‘Rob Sindel has called the end of the longest building boom in Australian history and his shareholders do not like it. When the chief executive of one of the biggest building materials companies says residential housing has peaked then it is worth listening. Construction bosses have a … Continue reading
(10 May 2017, AFR, p31, by Matt Scully) ‘US securities regulators are investigating whether bonds backed by single-family rental homes and sold by Wall Street’s biggest residential landlords used overvalued property assessments. Radian Group Inc’s Green River Capital unit is one of the market participants that received a request for information from the Securities and Exchange … Continue reading
(10 May 2017, AFR, p23, by: Jens Meyer, Patrick Commins) ‘Talk of a new tax on the big banks combined with an underwhelming CBA trading update to trigger a vicious selloff in the big four lenders on Tuesday, shaving nearly $14 billion off their market capitalisation.’ Read more at AFR.com (might need AFR login access, or … Continue reading
(10 May 2017, AFR, p1, by: Mark Mulligan, Sue Mitchell ) ‘Economists fear the $300 billion retail sector may be on the verge of recession after sales dipped again in March, confirming feedback from retailers that consumers have cut spending as living costs rise. Retail sales slipped 0.1 per cent in March, falling well short of … Continue reading
(10 May 2017, The Age, BusinessDay, p34, Oliver Renick) ‘For anyone nourished on volatility, the famine in global markets is worsening. With the French election ending in a victory for Emmanuel Macron, one more thing said to threaten global stability has made a quiet exit. For investors already looking at record-low price turbulence, the defeat … Continue reading
(10 May 2017, The Age, p14, Sewell Chan, New York Times) ‘LONDON — Emmanuel Macron will take office as France’s next president on May 14, President François Hollande announced on Monday, a day after Mr. Macron, an independent centrist, defeated Marine Le Pen in a battle for the country’s leadership. Mr. Macron appeared beside Mr. … Continue reading
(10 May 2017, The Age, BusinessDay, p23, Mathew Dunckley, Patrick Commins) ‘There is no sign of respite for the nation’s struggling retailers, particularly department stores, as shoppers refuse to spend in the face on an uncertain economy. The latest retail sales data from the Australian Bureau of Statistics showed a 0.1 per cent fall in March … Continue reading
(10 May 2017, CNBC online, Bob Pisani) ‘I recently called my old friend Ken Perkins for a preview on the earnings season for retailers, which starts in earnest Thursday with Macy’s and Kohl’s. Ken has been a retail consultant and analyst for many years as head of RetailMetrics.com. When I cheerfully asked, “Any signs of … Continue reading
(9 May 2017, AFR, p11, by Sue Mitchell) ‘Solomon Lew’s Premier Investments is $13 million underwater on its 11 per cent stake in Myer after the shares in the department store chain slumped amid concerns about the entry of Amazon and weak consumer spending. Fund managers blamed a 9.5 per cent fall in Myer’s share price to a … Continue reading
(9 May 2017, AFR, p10, by Angus Grigg) ‘China’s iron ore imports have slumped 13 per cent to their lowest level in six months, as stockpiles at ports across the mainland remain at record levels. Trade figures released by China’s Customs Bureau on Monday showed imports during April falling to 82.23 million tonnes, in a … Continue reading
(9 May 2017, AFR, p9, Bloomberg) ‘Emmanuel Macron pledged to unite France’s rifts after his victory over Marine Le Pen in the presidential election, saying he’ll work to address the concerns that were exposed during one of the most divisive campaigns of recent history. The president-elect made his comments in a speech to supporters at … Continue reading
(9 May 2017, AFR, p3, by Michael Bleby) ‘Business conditions have surged to a nine-year high and job advertisements have risen, in economic data published ahead of Tuesday’s budget. However, separate figures showed building approvals fell to a two-year low, a tentative sign that a primary driver of economic growth since the end of the resources boom … Continue reading
(8 May 2017, AFR, p19, by Tom Mitchell and Gabriel Wildau) ‘The World Bank has warned that Chinese local governments remain addicted to off-budget borrowing, despite Beijing’s efforts to impose fiscal discipline on localities and curb ballooning debt. Runaway growth of local government debt is widely seen as a huge risk for China’s economy and … Continue reading
(8 May 2017, AFR, p3,by Michael Bleby) ‘Falling volumes kept the auction clearance rate little changed around the 74 per cent mark in another week in which Melbourne performed more strongly than Sydney. The preliminary national clearance rate of 74.6 per cent was a marginal rise on the previous week’s 74 per cent, and was … Continue reading
[COMMENT: I don’t normally reproduce this much text from a news article; but this is compelling reading because it will challenge the beliefs of some investors. I urge you to click-through and read the entire article.] (6 May 2017, AFR, p25, by Christopher Joye) ‘Buying a “passive” or “indexed” fund is lobotomised investing, predicated on … Continue reading
(6 May 2017, MarketWatch online) ‘European stocks climbed out of the red and finished at a 21-month high Friday, as buying appetite for assets perceived as risky returned ahead of the French presidential election. The Stoxx Europe 600 index SXXP, +0.65% turned higher during the session, ending up 0.7% at 394.54, its highest since August … Continue reading
(6 May 2017, CNBC) ‘The S&P 500 and the Nasdaq composite indexes closed at record levels on Friday as investors looked ahead to a key European election. Both indexes, along with the Dow Jones industrial average, rose sharply heading into the close after hovering around the flatline for most of the session. Shares of Apple … Continue reading
(6 May 2017 AFR, p23, by Patrick Commins) ‘Plunging commodity prices should remind investors that our future economic pain or prosperity will be made in China. ‘This week the recent rapid fall in the iron ore price went up another gear. Chinese futures prices shed close to 10 per cent over three days leading into … Continue reading
(6 May 2017, AFR, p21, by Sarah Turner) ‘Investors aren’t quite prepared to follow the old saying “sell in May and go away” despite a week of ugly profit downgrades that sparked dramatic share price moves. Junior telco Vocus Communications, packaging firm Pact Group, footwear retailer RCG Corporation, Fairfax Media and casino operator The Star … Continue reading
(6 May 2017, AFR, p6, by Matthew Cranston) ‘More than half of Australians would be under mortgage stress if rates rose 2 percentage points, according to a new Galaxy poll commissioned by CoreLogic. The poll, used to build a picture of who the Australian home buyer is now and how they would look in the … Continue reading
(4 May 2017, AFR, p41, by Nick Lenaghan) ‘House prices could fall as much as 7 per cent by 2018 as lending curbs bite and household debt is lowered, according to Citi. Hardest hit potentially would be apartments in inner-city Brisbane and Melbourne, which are more threatened by oversupply than other housing sectors. The forecast … Continue reading
(4 May 2017, AFR, p37, by Michael Bleby) ‘Australia’s construction industry is likely to shed 166,000 jobs over the next three years as a worse-than-expected deterioration in engineering construction coincides with a slump in residential construction, the latest forecasts from the peak Australian Construction Industry Forum body show.’ Read more at AFR.com (might need AFR … Continue reading
(4 May 2017, AFR, p27, by Martin Wolf) ‘The first 100 days of Donald Trump’s presidency have brought some good news and some bad news. The good news is that, albeit chaotically, he is governing more as an orthodox post-Reagan Republican than most expected. The bad news is that he is governing more as an … Continue reading
(4 May 2017, AFR, p27, by Alex Barker) ‘The EU has raised its demand for Britain’s Brexit bill to an upfront gross payment of up to €100bn ($145bn), according to Financial Times analysis of new demands driven by France and Germany. Following requests from member states, EU negotiators have revised their initial calculations to maximise … Continue reading
(4 May 2017, AFR, p17, by Simon Evans) ‘The chief executive of Bingo Industries, Daniel Tartak, says the fact his own personal holding is worth around $105 million on paper after listing on the ASX on Wednesday won’t change him one bit. “It doesn’t change things. I’m still relatively young and I’ve got a long … Continue reading
