(24 September 2016, AFR, p27, by Jessica Sier) ‘Shares surged to their first weekly gain in six weeks, after the US Federal Reserve lowered its outlook for future interest rate hikes, dispelling investor worries that an end to the era of easy money is nigh.’ Read more at AFR.com (might need AFR login access, or … Continue reading
(24 September 2016, AFR, p17, by: Vesna Poljak, James Eyers, Jessica Sier) ‘The ASX has blamed an “unprecedented” hardware failure for its outage on Monday that forced the early close of trading, but hit back at any suggestion its handling of the meltdown prevented stockbrokers taking orders to rival Chi-X. A faulty disk in its data centre and a … Continue reading
(24 September 2016, AFR, p15, by Karen Maley) ‘As the haze of battle settles, it is clear the world’s major central banks have once again stared the markets down.’ ‘Both the US Federal Reserve and the Bank of Japan were able to dispel fears that gripped markets in the past few weeks that central banks … Continue reading
[COMMENT: Please note – this news article does NOT contain and advice, nor any recommendation to take any action. It is simply a report of someone’s opinions.] (23 September 2016, AFR, p31, by Philip Baker) ‘It’s game on. To make money from now until the end of the year investors should be ditching the yield play … Continue reading
(23 September 2016, AFR, p17, by Vesna Poljak) ‘The Bank of Japan’s surprise decision to target the level of Japanese bond yields has another purpose beyond figuring into the central bank’s inflation ambitions. It means the BoJ has killed off any chance that an epic bond market sell-off begins in Tokyo – for now. Bond … Continue reading
(23 September 2016, AFR, p15, by John Kehoe) ‘The decision to hold US interest rates steady was rejected by three of ten voting members on the Federal Reserve’s monetary policy committee, underlining how the central bank is growing increasingly divided about how soon to lift borrowing costs from crisis-level lows. Though Federal Open Market Committee … Continue reading
(23 September 2016, The age, BusinessDay, p25, Vanessa Desloires) ‘The two September roadblocks that halted the smooth ride of the market have passed, but equity strategists warn investors should not expect the rally that took the market to year highs in July to resume unfettered. The Bank of Japan and US Federal Reserve policy meetings this week … Continue reading
(22 September 2016, AFR, p30, by Michael Bleby) ‘A record year for Australia’s volume home builders raises concerns that the country’s largest-ever housing construction cycle has peaked. Australia’s largest volume builders made 69,161 starts in the year to June, just topping the previous record of 69,100 in 2004, the latest Housing 100 report produced by … Continue reading
(22 September 2016, AFR, p26, by Karen Maley) ‘First Draghi. Now Kuroda. Central bankers’ retreat from aggressive monetary stimulus is now clearly under way. Less than fortnight after Mario Draghi, European Central Bank boss, dismayed investors by keeping monetary policy on hold, the Bank of Japan chief Haruhiko Kuroda decided not to plunge any deeper … Continue reading
(22 September 2016, AFR, p25, by Jonathan Shapiro) ‘The Bank of Japan has added a new central bank tool to its kit – bond yield curbs. While reaffirming its commitment to keeping policy rates negative, it has not abandoned what many believe is a failed and harmful experiment. But, crucially, it appears to have heard … Continue reading
(22 September 2016, AFR, p18, by James Eyers) ‘Retail investors may be underestimating the risks of bank hybrid instruments being converted into equity by the regulator in a crisis, a move that could lead to a run on bank deposits, says one of the members of the financial system inquiry committee, Professor Kevin Davis.’ Read … Continue reading
(22 September 2016, AFR, p13, by Vesna Poljak, Jessica Sier) ‘The ASX is accused of unnecessarily trapping billions of dollars of market liquidity during its outage on Monday by locking up open orders, a decision that its competitor, Chi-X, says was at the discretion of the ASX. The ASX had the option to put the … Continue reading
(21 September 2016, The Age, BusinessDay, p19, Elizabeth Knight) ‘China is shaping up as favourite to fall victim to a major banking crisis, according to a dire and frightening warning from the Bank for International Settlements.The scale of China’s debt is enough to create major markets shock around the world. Such an event would put … Continue reading
(21 September 2016, AFR, p33, by Su-Lin Tan) ‘Brisbane CBD apartment asking rents have fallen 7.3 per cent in the past year making it one of the only places on the eastern seaboard to have a rental decrease, SQM Research data shows. The only areas to rival the fall were Darwin and Perth, where rents … Continue reading
(21 September 2016, AFR, p33, by Su-Lin Tan) ‘The construction of apartments in the major Australian cities will slow down heavily in 2017 and 2018 as the apartment industry heads into a correction, according to a report by IBISWorld. After high level of construction activity since the late 2000s, with multi-unit residential commencements rising by 6.8 per cent … Continue reading
(21 September 2016, AFR, p32, by Michael Bleby) ‘Mark Adams has sold 16 properties at Mount Buller since the start of July – nearly double the number he sold over the same period last year. The increased demand hasn’t yet translated into increases in price at the Victorian resort, but buyers are paying the prices … Continue reading
[COMMENT: The key points in this article are something that every investor needs to bear in mind. The financial markets work because different people have different opinions about what is fair and what is not… about what is cheap and what is dear… about how to make money… Read on.] (21 September 2016, AFR, p24, … Continue reading
(21 September 2016, AFR, p5, by Michael Bleby) ‘Home values rose at their slowest pace in more than three years in the year to the end of June quarter, according to the Australian Bureau of Statistics. Dwelling prices across Australia’s eight capital cities were 4.1 per cent higher at the end of June than a year earlier … Continue reading
(21 September 2016, AFR, p5, by Jacob Greber) ‘The Reserve Bank of Australia has downplayed fears of a property bubble, saying housing market conditions have eased since last year because of a regulatory crackdown on investors and a surge in apartment construction. In the minutes of Glenn Stevens’ final meeting as Reserve Bank governor two … Continue reading
(20 September 2016, AFR, p13, by Jonathan Shapiro) ‘Credit rating agencies are sending mixed messages when it comes to assessing the ability of home owners to service their mortgage debt. On Monday, Fitch Ratings reported what it said was a “surprise jump” in mortgage arrears that rose by 4 basis points despite a strong economic … Continue reading
(20 September 2016, The Age, BusinessDay, p21, Jessica Sier, Vanessa Desloires) ‘It was a frustrating Monday on the ASX as investors confronted a technical glitch that periodically enabled share trading before freezing it again. After a 90-minute delay to the start of trade, blocks of stocks slowly came online before the market froze again in the afternoon … Continue reading
(20 September 2016, The Age, BusinessDay, p21, Vanessa Desloires) ‘Almost two-thirds of Australia’s large-cap funds fail to hit or exceed the benchmark for returns, stoking the active versus passive debate and intensifying the pressure to justify their management fees. About a third of actively managed large-cap Australian share funds did as well as or outperformed the S&P/ASX 200 Accumulation Index in … Continue reading
(20 September 2016, The Age, BusinessDay, p19, Sarah Danckert) ‘Loose tweets can sink floats, according to the Australian Securities and Investments Commission. So can overly optimistic Youtube clips, LinkedIn posts and Facebook missives. That’s the take out of a review by the corporate watchdog of the marketing practices of companies and issuers involved in the … Continue reading
[COMMENT: Now there might be some people who think that the considerations that are explained in this article are reasonable when it comes to managing a business; but many people wouldn’t accept this approach. The details in this article are truly eye-opening.] (20 September 2016, The Age, BusinessDay, p16, Michaela Whitbourn) ‘It is not often … Continue reading
(19 September 2016, AFR, p32, by Aaron Patrick) ‘Analyst Belinda Moore got the bad news after the sharemarket closed before the Queen’s Birthday long weekend. Wellard Ltd, Australia’s biggest cattle exporter, had cut its profit forecast a second time since it was floated on the share market six months earlier.’ Read all the details at … Continue reading
(19 September 2016, AFR, p28, by Mercedes Ruehl) ‘Some office leases can take months to be agreed. In Sydney it is increasingly down to minutes. The capital of NSW, the country’s strongest performing economy, is in the grip of possibly the largest displacement of tenants in the CBD in history, according to real estate group … Continue reading
(19 September 2016, AFR, p11, by Sam Fleming) ‘It was the news that the Democrats have long been yearning for. Within two minutes of starting a stump speech in Las Vegas for his pneumonia-stricken wife on Wednesday, Bill Clinton was brandishing evidence of a resurgence of middle-class incomes. “The economy works better when Democrats are … Continue reading
(19 September 2016, AFR, p8, by Patrick Durkin) ‘Veteran investor Peter Morgan has warned that top companies are using accounting “skulduggery” to boost profits and bonuses and hide more than $26 billion in write-downs in their latest results. Huge write-downs at top 50 companies led by BHP Billiton, South32, Rio Tinto, Santos, Woolworths, Orica, Woodside … Continue reading
(19 September 2016, AFR, p3, by Su-Lin Tan) ‘Low interest rates have continued to heat up the housing market as strong demand for established homes, including from investors, outpaced supply. In the third week of the spring selling season, preliminary auction clearance rates were a high 85.1 per cent in Sydney and 78 per cent in Melbourne, according to Corelogic. Reinforcing the broad strength of demand, … Continue reading
(19 September 2016, The Age, BusinessDay, p21, Carolyn Cummins) ‘Investors are tipped to come out in force this week when a range of properties, worth more than $50 million combined, come up for auction. The demand for bricks and mortar is escalating as investors seek out higher returns than the cash market offers and avoid … Continue reading
(19 September 2016, The Age, BusinessDay, p18, Jessica Sier) ‘Just when you thought they’d been written off, resource stocks come back into vogue with force and fund managers are rotating back into the sector following hints China is on the growth-path again. Worried investors fled mining and energy stocks earlier in the year, as rumours swirled … Continue reading
(17 September 2016, AFR, p27, by Philip Baker) ‘Investors in the United States stockmarket should be happy. But they’re not. The bull market, that’s now been going for almost eight years, might just turn out to be the most hated bull market of all time. Why ? Not enough money is being made.’ <snipped…> ‘According to Morningstar, just under 10 per cent … Continue reading
(17 September 2016, AFR, p18, by Simon Evans) ‘Big established retailers are in fear of “zombie” stores. They are still there but feel dead because the space is simply too big and built for an era before the internet up-ended retailing. Stock levels are lower because fewer customers are coming in and those that do are frustrated by … Continue reading
(17 September 2016, AFR, p6, by Su-Lin Tan) ‘On Wednesday night, four out of seven houses in the far western suburbs of Sydney – Cecil Hills, Carnes Hill and and Elizabeth Hills – sold under the hammer. Two more sold just after auction and one passed in. That’s a regular auction mid-week result for Sydney’s eastern suburbs but not … Continue reading
(16 September 2016, AFR, p8, by Michael Bleby) ‘In the first 15 days of spring, CoreLogic’s home value index has risen 1.6 per cent and in Melbourne it is up 2.3 per cent. Halfway into September, the data provider’s daily home value index shows a 5.3 per cent quarter-on-quarter growth in Sydney home values – up from the … Continue reading
(16 September 2016, AFR, p7, by Jacob Greber) ‘The jobless rate fell last month to its lowest level in almost three years despite a decline in overall employment that has split the market on whether the labour market is in good health or not. Unemployment declined to 5.6 per cent from 5.7 per cent in July, the Australian Bureau … Continue reading
(15 September 2016, AFR, p39, by Su-Lin Tan) ‘The apartment market may be poised for an oversupply in all cities except Sydney in the next few years, but the detached housing market will be short in supply, research group BIS Shrapnel says. ‘ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(15 September 2016, AFR, p39, by Su-Lin Tan) ‘The Australian housing market could run into a shortage of apartments, leaving many renters in the lurch in the long run, property research group BIS Shrapnel warns. Rising house prices have attracted investors into the market, driving the supply of apartments for the past four years, managing director Robert Mellor said … Continue reading
(15 September 2016, AFR, p36, by Matthew Cranston) ‘Sydney’s office towers ranked fifth in the world for growth in capital values in the year to July recording a rise in value of 16 per cent, outpacing cities such as London and New York. Within the Asia Pacific prime office markets, Sydney recorded the largest year-on-year … Continue reading
(15 September 2016, AFR, p31, by Matthew Cranston) ‘Sydney ranks No.1 worldwide for forecast prime office building rental growth over the next four years, ahead of fifth-ranked Melbourne, according to the latest Global Cities report from agency Knight Frank. Sydney, with its smaller pipeline of supply and strong leasing demand for secondary space, also ranked high on the Skyscraper Index, … Continue reading
(15 September 2016, AFR, p18, by John Kehoe) ‘Leading American hedge fund managers have warned the sharp sell-off in equities and bonds over the past few days will inflict more pain on investors, as the consequences of low interest rates and debt build-up are felt across a range of economies. While Wall Street sold off heavily … Continue reading
[COMMENT: Now, will the opinions of these fund managers prove to be correct? Only time will tell.] (15 September 2016, AFR, p15, by Vesna Poljak , Jonathan Shapiro) ‘Global fund managers say that sharemarkets around the world will avert a crash but investors need to get ready for higher volatility in stock prices that will … Continue reading
(15 September 2016, AFR, p12, by Don Lee) ‘Steady job growth and the biggest earnings boost in a decade helped sharply lower the poverty level in the United States last year and finally provided relief to the long-running problem of stagnant wages. In its annual report on income and poverty, the Census Bureau said on … Continue reading
(15 September 2016, AFR, by Su-Lin Tan) ‘In another sign of the strength of the Sydney property market, two thirds of properties listed for auctions on Tuesday sold before the night and the rest were cleared out in under an hour. The evening was dominated by parents buying for children in the eastern suburbs while home buyers … Continue reading
(15 September 2016, AFR, p9, by Duncan Hughes) ‘The risks of a ‘Big Short’-style melt-down in the Australian property market could be on the rise despite a crackdown by regulators after a $7 billion jump in the value of interest-only loans. Following the Reserve Bank of Australia’s cut in interest rates, interest-only loans have risen to account for more than one in three new property loans, … Continue reading
(15 September 2016, The Age, p12, Christina ZhoutwitterDomain Reporter) ‘Melbourne tenants hunting for a house face the tightest rental market in more than two years, new data shows. The proportion of houses vacant in Melbourne was just 1.5 per cent in August, down from 1.7 per cent a year ago – and the lowest figure since April 2014, Domain Group data shows. There … Continue reading
(14 September 2016, AFR, p11, by Lisa Murray) ‘China’s economy is back on firmer footing, with retail sales and industrial production picking up by more than expected in August while property investment rose for the first time in four months. The slew of more positive economic data bodes well for Australia’s biggest export, iron ore, … Continue reading
(14 September 2016, AFR, p9, by Julie-anne Sprague) ‘Australian farmers are on track to harvest a record winter crop as weather conditions across the country boost production in every single state for the first time in nearly a decade. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has forecast record winter crop … Continue reading
(13 September 2016, AFR, p17, by Peter Ker) ‘One of Australia’s biggest mining and energy investors says the lithium boom is reminiscent of previous boom-and-bust cycles in uranium, rare earths and graphite, and he warns that most companies vowing to supply the world with lithium will not convert the price boom into a sustainable business model.’ … Continue reading
(13 September 2016, AFR, p10, by Kyunghee Park and Jiyeun Lee) ‘Beleaguered South Korean container line Hanjin Shipping said on Monday more vessels were in line to unload cargo at Long Beach port in California after a US court on Friday granted bankruptcy protection. Three more Hanjin ships are waiting at the port to clear … Continue reading
(13 September 2016, AFR, p6, by Michael Bleby) ‘Mortgage defaults are rising and loans to property investors in NSW are also taking a bigger share of the lending pie. While the increases are not yet large enough to cause problems, they will have both the Reserve Bank of Australia and banking regulator APRA watching closely … Continue reading
