(17 November 2018, AFR, p33, by William McInnes) ‘Australian shares plummeted this week after a “risk off” market sent the market into a nose-dive on Tuesday and Wednesday, wiping $54 billion from the boards in the past five sessions. The S&P/ASX 200 Index closed the week 191.3 points, or 3.2 per cent, lower at 5730.6 while … Continue reading
(16 November 2018, AFR, p20, Ayai Tomisawa, Reuters) ‘Japan’s Nikkei fell on Thursday, with banking stocks sliding after disappointing earnings forecasts and losses in US financial shares. Selling in large market cap stocks such as SoftBank and Fanuc also dented the market. The Nikkei share average dropped 0.5 per cent to 21,728.34 points by midmorning.’ … Continue reading
(16 November 2018, AFR, p19, by Brad Thompson) ‘GrainCorp has spelled out the ripple affect a disastrous east coast harvest will have on the Australian economy with virtually no wheat available for export from its port terminals and its casual workforce slashed by thousands. Managing director Mark Palmquist also said it was inevitable that sky-high … Continue reading
(16 November 2018, AFR, p14, by Paul Carrel and Rene Wagner) ‘Berlin | Germany’s economy contracted for the first time since 2015 in the third quarter as global trade disputes and problems in the auto industry put the traditional growth engine of exports into reverse, raising concerns that a long expansion is faltering. Gross domestic … Continue reading
(16 November 2018, AFR, p6, by Simon Evans) ‘Australia’s third largest credit union has tightened its lending criteria for home loan customers and is placing heavier scrutiny on household expenses and spending patterns when assessing borrowers, but has a more optimistic outlook on Australian house prices than many economists. Steven Laidlaw, chief executive of People’s … Continue reading
(16 November 2018, AFR, p3, by Sarah Turner) ‘The Australian economy added 32,800 jobs in October, maintaining the unemployment rate at 5 per cent, and presenting further evidence that the labour market is getting tighter after fresh data this week showed wages advanced the most in three years. Figures released by the Australian Bureau of … Continue reading
(16 November 2018, The Age, p8, Alex Druce & Benjamin Preiss) ‘A surge in job creation has pushed Victoria and New South Wales to “full employment” with economists saying the data is another pointer to improving conditions in the labour market. Victoria’s unemployment rate, at 4.5 per cent, is now at a decade low while … Continue reading
(15 November 2018, AFR, p29, by Su-Lin Tan) ‘Real estate agency H&T Realty is suing developer Metro Property Development over $4 million in off-the-plan apartment sales commissions. H&T, which sells apartments in Sydney, Melbourne and Brisbane, alleges Metro withheld commissions after blaming the agent for a 20 per cent to 25 per cent default rate at seven of … Continue reading
(15 November 2018, AFR, p28, by Chanticleer, James Thomson) ‘When does a string of poor trading updates become a worrying confession season? That’s the question investors now need to ask themselves, after Wednesday brought another three profit downgrades on the ASX.’ <snipped…> ‘The annual general meeting season through October and November each year always provides … Continue reading
(15 November 2018, AFR, p27, by Tim Culpan) ‘A three-minute conversation on stage at UBS AG’s Global Technology Conference in San Francisco helped wipe more than $US190 billion ($263 million) from global stocks. Lumentum Holdings makes lasers for 3D facial recognition used by major smartphone makers, with Apple its key client. On Monday, the company announced a … Continue reading
(15 November 2018, AFR, p27, by Sarah Turner) ‘Oil prices sliding to an eight-month low took Australian energy companies and the broader market with them as investors rushed to sell out of the energy sector. After a torrid session the previous day, Australian investors looked set to hit pause on the selling. The calm only … Continue reading
(15 November 2018, AFR, p5, by Vesna Poljak) ‘The economy experienced wage growth of 0.6 per cent in the September quarter, taking the annual rate to 2.3 per cent and the fastest in three years on a jump in public sector incomes. The result was in line with market expectations, accelerating from 2.1 per cent in the … Continue reading
[COMMENT: Here is another scary, attention-grabbing headline, that tends to overstate the seriousness of the short term situation in the market. We shouldn’t be too worried about 1-day market statistics like this one. It’s best to look at the price chart, and zoom out to view many days.] (15 November 2018, AFR, p27, by William … Continue reading
(15 November 2018, AFR, p33, by Larry Schlesinger) ‘Sydney’s new apartment market hit a brick wall in the September quarter as buyers abandoned the NSW capital for more affordable opportunities in Melbourne and Brisbane, according to property research consultancy Urbis. Urbis’ latest Apartment Essentials report found an 88 per cent slump in Sydney off-the-plan sales … Continue reading
(15 November 2018, AFR, p33, by Su-Lin Tan) ‘By the end of 2019, Sydney and Melbourne house prices may fall by 12 to 17 per cent from peak prices and could trigger a recession, SQM Research’s annual Christopher’s Housing Boom and Bust Report says. If negative gearing is repealed, then the fall from peak prices could … Continue reading
(15 November 2018, AFR, p32, by Larry Schlesinger) ‘Lendlease is offering buyers of apartments at its signature $2.5 billion Melbourne Quarter project in Docklands discounts of up to 5.5 per cent as it battles a slowing market and an exodus of overseas investors. The embattled construction and development giant’s discounted offer, through stamp duty rebates, … Continue reading
(15 November 2018, AFR, p32, by Larry Schlesinger) ‘Foreign investors are selling discounted apartments in iconic Melbourne high-rise developments like Australia 108, Aurora and Premier Tower on classified websites like Gumtree before settlement as they battle to secure bank funding. Among the discounted offerings, a Queensland-based investor is selling a 49 square metre one-bedroom apartment in … Continue reading
(14 November 2018, AFR, p1, by John Kehoe) ‘The Morrison government will inject $2 billion into the small business loan market in an unprecedented effort to boost lending to cash-starved firms which have complained of a worsening credit squeeze. The creation of a taxpayer-backed securitisation fund to invest in small and medium enterprise (SME) credit … Continue reading
(14 November 2018, AFR, p33, by Larry Schlesinger) ‘Developers of land estates in Melbourne’s outer suburbs are offering price discounts and incentives to buyers as they battle a major slowdown in sales and the start of what could be a steep correction in prices, according to Financial Review Rich Lister Nigel Satterley. “Mystery shoppers have … Continue reading
(14 November 2018, AFR, p33, by Su-Lin Tan) ‘Sydney’s record high housing vacancy remains unchanged at 2.8 per cent in October as the supply of new housing exceeds demand, the latest update by SQM Research shows. Vacancies in other major cities continue to fall, showing a healthier balance between supply and demand of housing. A year ago, Sydney’s … Continue reading
(14 November 2018, AFR, p29, by Michael Bleby) ‘Higher-income suburbs of Sydney, Melbourne and Brisbane are suffering higher levels of mortgage stress and pose more of a settlement risk to residential developments than those in lower-income suburbs. ‘ ‘Hornsby (25.9 per cent), St Leonards (10.5per cent) and Bondi (12.5 per cent) in Sydney; Docklands (12.5 … Continue reading
[COMMENT: We often see scary or attention-grabbing headlines in the press, and here is another one. When we look at the chart of the relevant sector index, we can see that the article headline might be true, but in the big scheme of things, it’s not a problem at all. Because this sector index fell … Continue reading
(13 November 2018, AFR, p37, by Chayut Setboonsarng) ‘Thailand’s new ultra-luxurious Iconsiam shopping complex opened its doors on Saturday, shrugging off a decline in tourist arrivals and political uncertainty ahead of next year’s elections. “I wanted to build something that would tell the million stories of ‘Thainess’,” says Chadatip Chutrakul, chief executive of Siam Piwat, … Continue reading
(13 November 2018, AFR, p37, by Carrie Hong) ‘Investors are bracing for more debt defaults among China’s cash-squeezed real estate developers as funding costs surge and refinancing pressure intensifies. Borrowing costs in dollars for China’s high-yield issuers, most of whom are property developers, almost doubled this year to 11.2 percent, the highest in about four … Continue reading
(13 November 2018, AFR, p36, by Dhwani Pandya) ‘India’s banking liquidity crunch is extending to the nation’s developers, threatening to derail a nascent recovery in the property sector. Home builders in India have increasingly been turning to non-bank lenders for funding as traditional financiers struggle under bad loans. But following the government’s seizure of troubled … Continue reading
(13 November 2018, AFR, p31, by Larry Schlesinger) ‘Melbourne housing lot prices will “quickly” tumble up to 10 per cent as Uber-driving speculators and foreign investors default on thousands of sales contracts, Financial Review Rich Lister Nigel Satterley has warned. Quoting research undertaken by his Satterley Property Group, Mr Satterley said the “top of the … Continue reading
(13 November 2018, AFR, p27, by Don Weinland) ‘Hong Kong | A wall of onshore debt worth tens of billions of dollars issued by Chinese property developers is due to mature next year, sparking concerns over defaults at a time of economic slowdown and tightening liquidity. China’s property market is a bedrock for growth and … Continue reading
(13 November 2018, AFR, p13, by Jonathan Shapiro) ‘Housing experts are convinced that regulators will have to step in and reflate housing activity in the economy on evidence that more first home buyers and investors are deserting the property market, raising the risk of a disorderly correction. As auction clearance rates fall toward historic lows, fears … Continue reading
(13 November 2018, The Age, Business, p27, Emma Koehn) ‘The Melbourne business owner believes it is getting more difficult to squeeze cash from customers, making things tricky for the small business, which turns over just below $1 million a year. It’s an experience which is reflected in the latest edition of Prushka Fast Debt Recovery’s Canary … Continue reading
(12 November 2018, AFR, p40, by Larry Schlesinger) ‘The sale of two large grazing properties near Wagga Wagga in Southern NSW at rates of more than $9000 and $10,000 per hectare have provided further evidence that rural values are holding up amid the wider drought conditions.’ Read more at AFR.com (might need AFR login access, … Continue reading
(12 November 2018, AFR, p25, by Timothy Moore) ‘As the latest US corporate earnings season winds down, it’s getting more difficult to dismiss the clouds on the horizon in the US and Europe as transitory.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(12 November 2018, AFR, p25, by Vesna Poljak) ‘Expectations of a rise in the wage price index represent the latest piece of good news for the economy after the Reserve Bank of Australia last week upgraded its expectations for growth and the labour market. Economists are expecting Wednesday’s wage price index to show 0.6 per cent growth … Continue reading
(12 November 2018, AFR, p10, by Nick Lenaghan) ‘Sydney’s auction clearance rate is heading towards a 30-year low after hitting 41 per cent on preliminary figures over the past week. The situation of the Sydney market where prices are already falling and discounting is increasing prompted a warning from veteran analyst SQM Research’s Louis Christopher. … Continue reading
(10 November 2018, AFR, p15, by Jacob Greber) ‘Washington | The American President battered yet undefeated by this week’s mixed-verdict election is only now beginning the real fight of his political life. Buckle up, because it’s going to be a two-year race against an enraged Democrat-led House of Representatives, threatening judicial inquiries, an economy nearing … Continue reading
(10 November 2018, CNBC, Fred Imbert ) ‘Stocks fell on Friday as further losses in oil prices sparked fears of a global economic slowdown, but the major indexes still managed solid weekly gains. The Dow Jones Industrial Average fell 203 points as losses in Caterpillar and Goldman Sachs offset gains from Disney. The S&P 500 … Continue reading
(10 November 2018, CNBC online, Tom DiChristopher ) ‘U.S. crude prices fell Friday for a 10th consecutive session, sinking deeper into bear market territory and wiping out the benchmark’s gains for the year. The 10-day decline is the longest losing streak for U.S. crude since mid-1984, according to Refinitiv data. Crude futures fell for a … Continue reading
(10 November 2018, AFR, p27, by Simon Evans) ‘The heavy sell-off in shares in Australia’s big building products companies is a pointer to where investors think the housing market is headed. CSR shares have tumbled 43 per cent in the past six months, Boral is off 21 per cent since the start of October and … Continue reading
(10 November 2018, AFR, p10, by Brad Thompson) ‘A little bit of rain has made lot of a difference to farmers in Western Australia, who look set to keep the country in grain over the next 12 months and reap some of the best prices on record while doing it. They are also likely to … Continue reading
(10 November 2018, AFR, p2, by Jonathan Shapiro) ‘The Reserve Bank says it expects a fall in the unemployment rate to finally translate into a growth in wages, as the global forces that have distorted the long-held relationship begin to “abate”. In its quarterly statement of monetary policy, published on Friday, the central bank said … Continue reading
(7 November 2018, AFR, p38, by Larry Schlesinger) ‘Strong demand from logistics, transport, retail and manufacturing companies pushed down industrial vacancy rates across the east coast with the Melbourne market hitting a five year low, according to September quarter data compiled by Knight Frank. Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(7 November 2018, AFR, p36, by Larry Schlesinger) ‘Tumbling house prices have not flowed through to lower rents for tenants, but this is about to change, according to the CEO of ASX-listed portal rent.com.au.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(7 November 2018, AFR, p36, by Michael Bleby) ‘Falling investor and owner-occupier demand is prompting economists to predict deeper falls in the key Sydney and Melbourne housing markets than they expected six months ago. Prices in the two largest cities are now falling at an annualised rate of 10 per cent and while the pace … Continue reading
(7 November 2018, AFR, p1, by John Kehoe) ‘The Reserve Bank of Australia is clinging to its record low interest rate setting even after upgrading its economic and inflation outlook and tipping the jobless rate to fall to a decade-low of 4.75 per cent. RBA governor Philip Lowe said in a statement on Tuesday that economic growth … Continue reading
(6 November 2018, The Age, World, p12, Christopher Schuetze) ‘One of the longest dry spells on record has left a pivotal section of the Rhine River at record low levels for months.’ <snipped…> ‘Parts of the Danube and the Elbe — Germany’s other major rivers for transport — are also drying up. Some inland ports … Continue reading
(6 November 2018, The Age, p1, by Adam Carey) ‘The cooling property market has shaved $2.4 billion in forecast stamp duty revenue from the Victorian budget, although the state’s economy remains in strong shape, propelled by low interest rates and rapid population growth. Victoria’s economy is forecast to record a surplus of $2.27 billion this … Continue reading
(6 November 2018, AFR, p26, by Simon Evans) ‘New car sales have dropped for the seventh consecutive month as households put the brakes on big-ticket discretionary purchases amid a property price slowdown that is hurting confidence. Private purchasers have been backing off at a significant rate, with sales down by 12 per cent in October … Continue reading
(6 November 2018, AFR, p11, by Charlotte Antoine) ‘Noumea, New Caledonia | A majority of voters in the South Pacific territory of New Caledonia chose to remain part of France instead of backing independence on Sunday, a watershed moment that led French President Emmanuel Macron to promise a full dialogue on the archipelago’s future.’ Read more at … Continue reading
(6 November 2018, AFR, p9, by Patrick Durkin) ‘The Victorian budget has taken a $2.4 billion hit from the property slowdown, despite the state remaining in good economic health, a pre-election budget update released on Monday by the state’s Department of Treasury and Finance reveals.’ Read more at AFR.com (might need AFR login access, or … Continue reading
(5 November 2018, AFR, p2, by Michael Bleby) ‘The housing slowdown that pushed the national auction clearance rate last week to a six-year low will be deepest in Sydney and Melbourne because tight bank credit rules will hit buyers hardest in the least-affordable cities. CoreLogic’s preliminary clearance rate fell to 47.4 per cent in the … Continue reading
(2 November 2018, AFR, p14, by Tim Ross and Ian Wishart) ‘Brussels/London | British and European officials have hailed progress in Brexit negotiations, with UK lead negotiator Dominic Raab predicting that a deal on the divorce would be finalised by November 21.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(2 November 2018, The Age, Business, p29, Swati Pandey & Kate Ashton) ‘Home prices in Sydney – once the nation’s hottest market – posted their worst annual performance since 1990 in October, dragging down national values and pointing to a further slowdown over coming months in a blow to consumption. Property consultant CoreLogic said on … Continue reading
