(23 June 2018, AFR, p33, by Sarah Turner) ‘Australian shares ended a stellar week on a lower note, as caution crept into the market after traders pushed the index to a level not seen for ten years earlier in the week. The S&P/ASX 200 index dipped 6 points to end the day at 6225, with the … Continue reading
(22 June 2018, The Age, p1, By David Crowe) ‘The Prime Minister is moving to add to his victory in Parliament on personal income tax cuts by striking a deal on $35.6 billion in company tax reform, as Labor antagonises One Nation in a bitter dispute before the July 28 byelections.’ Read more at TheAge.com.au
(22 June 2018, AFR, p29, by Robin Wigglesworth) ‘Of all the fashionable alarm bells that market-watchers keep an eye on, the yield curve is the most timeless. It is Coco Chanel’s proverbial “little black dress” of economic indicators.’ <snipped…> ‘In other words, on a global aggregate level investors no longer get a premium to hold … Continue reading
(20 June 2018, AFR, p30, by Matthew Cranston) ‘Slap, slap, slap. That’s the sound of early back slapping from the commentators who picked a correction of Australia’s housing market – most especially the biggest market Sydney. There is no need name names – they will do it themselves – but it’s official, the federal government’s statistics collector has recorded the first annual price … Continue reading
(20 June 2018, AFR, p30, by Michael Bleby) ‘Sydney house prices started to unwind six years of growth in the March quarter, with their first annual decline since 2012, official figures on Tuesday showed. The 0.8 per cent year-on-year fall in the value of detached dwellings was less than the 0.9 per cent contraction in … Continue reading
(20 June 2018, AFR, p11, John Kehoe, Michael Smith) ‘Escalating trade tensions between the world’s two biggest economies have rattled investors in Australia and around the region as US President Donald Trump’s threat to slap tariffs on an additional $US200 billion of Chinese imports wiped billions of dollars off Asian markets on Tuesday. China accused … Continue reading
(20 June 2018, The Age, p12, Melanie Beeby) ‘ANZ Banking Group is tipping falls in Sydney and Melbourne housing prices of about 10 per cent from peak to trough, driven by tighter credit and higher interest rates next year. ANZ senior economists Daniel Gradwell and Joanne Masters said the housing market had slowed further than … Continue reading
(19 June 2018, AFR, p27, by Andrew Edgecliffe-Johnson and Patti Waldmeir) ‘Donald Trump’s new tariffs on $US50 billion of Chinese imports have run into stiff opposition from the US business community, changing the mood in boardrooms that had welcomed the president’s cuts to taxes and regulations and had largely shrugged off his protectionist rhetoric. The … Continue reading
(18 June 2018, AFR, p24, by James Frost) ‘Global asset manager Blackrock is poised to delist five ASX-listed exchange traded funds with around $145 million under management at the end of the financial year, in the biggest wind-up of its kind to take place. The world’s largest asset manager says the ETFs have underwhelmed in … Continue reading
(18 June 2018, AFR, p13, by Michael Smith) ‘The threat of a US trade war and a batch of weak economic data have revived fears that cracks are appearing in President Xi Jinping’s mission to keep the world’s second-largest economy on a stable footing, as state-owned enterprises and local governments battle to wean themselves off … Continue reading
(18 June 2018, AFR, p10, by Michael Bleby) ‘Tighter curbs on credit and vendors holding out for last year’s prices in a softening market stifled the week’s auction clearances at a preliminary 56.9 per cent rate even as the number of auctions doubled. A total 1991 homes went to auction over the week to Saturday, … Continue reading
(16 June 2018, AFR, p27, by Michael Bleby) ‘Lendlease says Brisbane’s unit oversupply will peak this year and is bracing for rising defaults on settlements in the short-term as buyers fail to complete purchases. The developer, Australia’s best-performing real estate company over the past year, also said in an investor presentation on Friday the royal commission … Continue reading
(16 June 2018, The Guardian online,Dominic Rushe in New York,@dominicru, Sat 16 Jun 2018 01.05 AEST First published on Fri 15 Jun 2018 22.20 AEST) US-China trade tensions escalate as Trump approves $50bn of tariffs – business live President tells Fox News he is ‘very strongly clamping down’ China says it will impose tariffs of … Continue reading
(16 June 2018, AFR, p13, by Justin Sink) ‘Donald Trump is set to announce tariffs on Chinese goods worth about $US50 billion ($67 billion), ratcheting up a confrontation on trade that is likely to prompt retaliation from Beijing. The Trump administration is preparing to release on Friday (Saturday AEST) a refined list of Chinese products to be hit with tariffs … Continue reading
(15 June 2018, The Age, p8, Peter Martin) ‘Jobs growth has slid dramatically, with new employment figures showing only 95,900 extra workers employed during the past six months, down from 208,000 employed in the previous six months. The change brings the average number of jobs created per day down from 1140 to 525. It came as … Continue reading
(15 June 2018, AFR, p31, by William McInnes) ‘A US recession could occur within the next two years according to former US bond trader Charlie Jamieson, who says the flattening of the bond yield curve is a signpost of possible trouble ahead. Speaking on a panel on global macro at Livewire Live 2018, Mr Jamieson, … Continue reading
(15 June 2018, AFR, p29, by Bloomberg) ‘China’s central bank held off from immediately raising borrowing costs following the US Federal Reserve, a decision that came just as economic data for May showed that the economy is losing steam. With the prospect of fresh US tariffs on Chinese exports approaching, the world’s second-largest economy is already slowing … Continue reading
(15 June 2018, AFR, p29, by John Kehoe) ‘A bullish US Federal Reserve chairman Jerome Powell has declared the American economy is in “great shape”, as the central bank positioned for a slightly faster pace of interest rate rises over the next two years. The Trump-Republican tax cuts and government spending would “significantly support” economic … Continue reading
(15 June 2018, AFR, p28, by Vesna Poljak) ‘The market’s growing confidence that the Reserve Bank of Australia will keep interest rates on hold for close to another year opens up a widening gap between US and Australian rates that is being mirrored in advanced economies around the world. The Federal Reserve raised interest rates for … Continue reading
(15 June 2018, AFR, p27, by Martin Wolf) ‘We live in an age judged to be one of exciting technological change, but our national accounts tell us that productivity is almost stagnant. Is the slowdown or the innovation an illusion? If not, what might explain the puzzle? The slowdown, if true, matters. As Paul Krugman, … Continue reading
(15 June 2018, AFR, p27, by Nicole Bullock) ‘Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount … Continue reading
(15 June 2018, AFR, p4, by Jacob Greber) ‘Growing evidence of skill shortages and the equal-lowest jobless rate in almost 5½ years is stoking speculation the labour market is gradually absorbing the spare capacity blamed for weak wages growth. The unemployment rate recorded the biggest fall in two years in May, down 0.2 percentage points … Continue reading
(15 June 2018, AFR, p1, by Karen Maley) ‘Australian banks are being squeezed by higher borrowing costs as the US Federal Reserve accelerates its interest rate hikes and drains liquidity from global financial markets while the Hayne royal commission makes it difficult for them to raise home loan rates. The woes of the local banks … Continue reading
(14 June 2018, AFR, p37, by Michael Bleby) ‘Realtor Sotheby’s Mornington Peninsula franchise is about to swallow its Melbourne-based parent as consolidation starts in the top-end Victorian residential market. Peninsula Sotheby’s International Realty principal Rob Curtain is understood to be close to purchasing Melbourne Sotheby’s International Realty and wants to reboot the business, which owns the state rights to the Sotheby’s name. The … Continue reading
(14 June 2018, AFR, p33, by Su-Lin Tan) ‘Real estate agents are offering 20 per cent discounts on apartment sales at four of Brisbane-based developer Metro Property Development’s Brisbane CBD projects as the apartment market continues to face headwinds.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(14 June 2018, AFR, p31, by Michael Heath and Garfield Reynolds) ‘Australia’s east-coast property bubble is showing signs of deflating at a faster clip as home-lending data recorded the longest losing streak in almost a decade. Housing finance fell 1.4 per cent in April, the fifth straight monthly drop and the longest stretch of declines … Continue reading
(14 June 2018, AFR, p31, by Sarah Mulholland) ‘Landlords have malls they’d like to unload. But who’d want to buy them? As they battle the rise of e-commerce, US mall owners are trying to clear their books of fading centres so they can focus on the most profitable ones. That’s proving difficult, with just a … Continue reading
(14 June 2018, AFR, p25, by Claire Jones) ‘The European Central Bank looks set to brush aside concerns about stiffening economic headwinds and begin discussions about how to wind down its €2.4tn bond-buying programme this week. ECB officials have long hinted that they would use the summer to lay out plans to end quantitative easing. … Continue reading
(14 June 2018, AFR, p3, by: Jacob Greber, Ben Potter) ‘Reserve Bank of Australia governor Philip Lowe has downplayed concerns over falling property prices, saying they are still 40 per cent higher in Sydney and Melbourne than they were just a few years ago. “As long as it’s not a very large decline – it’s manageable,” Dr … Continue reading
(13 June 2018, AFR, p4, by Mark Ludlow) ‘It’s official. Queensland has given up on paying back its debt – either in the short, medium or long-term.Mirroring the same decision taken by federal Treasurer Scott Morrison and escalating Commonwealth debt, Queensland Treasurer Jackie Trad has banked on the average Queenslander not giving a stuff about … Continue reading
(13 June 2018, AFR, p1, by Michael Smith) ‘Donald Trump and Kim Jong-un have committed to end the nuclear stand-off on the Korean Peninsula after signing a four-point plan in which North Korea commits to “complete denuclearisation” in exchange for US security guarantees following a historic meeting between the two leaders.’ Read more at AFR.com … Continue reading
(13 June 2018, The Age, p12, Clancy Yeates) ‘New lending to property investors has fallen to its lowest level in over two years, as banks run the ruler over prospective borrowers more carefully and house prices fall in Australia’s two biggest cities. Official figures on Tuesday showed the value of new loan approvals to investors … Continue reading
(12 June 2018, AFR, p29, by The Lex Column) ‘A flamboyant president presides over Argentina. The country has abundant natural resources but never enough private savings for investment. Radical economic measures are needed. That was back in 1989 and Carlos Menem’s time in office did not go well. This week, the IMF agreed a $US50bn … Continue reading
(12 June 2018, AFR, p9, by Brad Thompson) ‘Farmer confidence has slumped to alarmingly low levels in Australia on the back of dry conditions, but a specialist rural lender says the sector is investing to counter the impact of drought. A survey of 1000 farmers shows confidence has withered to its lowest level in five … Continue reading
(12 June 2018, AFR, p3, by Su-Lin Tan) ‘Melbourne’s population boom, rising infrastructure projects and a growing services sector has put the Victorian capital city at the top of the Housing Industry Association’s latest list of top 20 building growth areas. Twelve out of the top 20 areas in the latest “Hotspots Report” are in … Continue reading
(9 June 2018, AFR, p48, by Chanticlee) ‘If there was ever a time to be optimistic about the outlook for the Australian economy, then it was surely this week. The biggest jump in GDP in seven quarters. The 16th trade surplus in 18 months. Data showing a surge in corporate bond issuance. The good news just kept … Continue reading
(9 June 2018, AFR, p4, by Duncan Hughes) ‘Property owners in the nation’s most prestigious inner-suburbs should brace for even bigger price falls as the real estate market continues to slow, costs rise and demand weakens, according to analysis by CoreLogic. Recent market dips of up to 9 per cent in the price of multi-million dollar properties … Continue reading
(7 June 2018, AFR, p37, by Michael Bleby) ‘New home sales fell at their fastest rate in seven months in April as every mainland state suffered a decline, Housing Industry Association figures show. The 4.2 per cent decline in sales of new standalone…’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
(7 June 2018, AFR, p37, by Nick Lenaghan) ‘A record amount of greenfield land lots were produced by developers in Melbourne’s growth corridors last year as the state’s population surged. A state government report into the supply of lots in the city’s broadhectare market – the metropolis’s growth areas – shows 30,000 lots were constructed between July 2016 and November 2017. On … Continue reading
(7 June 2018, AFR, p36, by Michael Bleby\) ‘ANZ, which in April created confusion by raising its expectations for housing prices two weeks after an earlier prediction, said on Wednesday it would cut its outlook due to a sharply deteriorating market. The country’s third-largest mortgage lender did, however, not forecast any new numbers, saying it would … Continue reading
(7 June 2018, AFR, p36, by Nick Lenaghan) ‘Housing affordability has improved in New South Wales and on a national basis as the real estate market cools and banks put the brakes on credit. In its first issue this year, the Adelaide Bank/REIA Housing Affordability Report found the proportion of income required to meet loan repayments decreased nationally … Continue reading
(7 June 2018, The Age, p15, Clancy Yeates) ‘ANZ Bank has warned the pace of decline in Australia’s house prices is “quite a bit larger” than expected, and likely to last longer than it previously forecast. With national auction clearance rates at a five-year low, ANZ senior economist Daniel Gradwell predicted in a research note … Continue reading
(7 June 2018, The Age, p1, Peter Martin) ‘The Australian economy has defied world trends to record its fastest growth since 2011, driven by strong employment, growing business investment and solid government spending. A jubilant Treasurer Scott Morrison yesterday said the government was delivering on its promise of jobs and economic growth, and said business … Continue reading
(7 June 2018, AFR, p35, by Michael Bleby) ‘The number of new apartments launched has picked up from its low point last year, but developers’ ability to supply the ongoing demand for housing will depend on whether banks will fund their project or not, consultancy Urbis says. The consultancy’s Urbis Apartment Essentials report shows there … Continue reading
(7 June 2018, AFR, p33, by Michael Bleby) ‘Falling auction clearance numbers and nervous vendors are driving growth in the number of off-market sales in the residential markets of Australia’s largest cities. Last month, Sydney buyers agent Lauren Goudy purchased a two-bedroom apartment in Sydney’s Darlinghurst for $2,154,000. The unit at 707/320 Liverpool Road was … Continue reading
(7 June 2018, AFR, p25, by Martin Wolf) ‘A radical rethink of how the financial system works was, one might have thought, essential after the devastating crisis of a decade ago. Instead, the system was patched up. Now, predictably, the mood is shifting towards removing much of the regulation. That is why I hope, despite … Continue reading
(7 June 2018, AFR, p25, by Jude Webber, Adam Samson and Gregory Meyer) ‘The peso plunged on Wednesday (AEST) after Mexico imposed tariffs on US imports including bourbon, apples, potatoes, cheese and pork in retaliation to the Trump administration’s levies on steel and aluminium. The announcement of tariffs ranging from 15 per cent to 25 … Continue reading
(7 June 2018, AFR, p2, by Jennifer Hewett) ‘As he celebrated better than expected economic growth figures, an ebullient Scott Morrison was keen to single out the significance of utes. “Every time an Australian sees a ute driving around a suburb of one of our metro areas or regional towns with a phone number on … Continue reading
(7 June 2018, AFR, p1, by Jacob Greber) ‘Galloping iron ore, coal and liquefied natural gas exports, alongside infrastructure investment and population growth, are generating an economic growth spurt that could start to revive workers’ stagnating wages. While high household debt, a falling savings rate and ongoing income pressures remain weak points for growth – … Continue reading
(5 June 2018, AFR, p35, by James Politi and Rachel Sanderson) ‘As Italy’s financial elite gathered last Tuesday morning in Palazzo Koch, the 19th century building in central Rome that houses the Bank of Italy, they had every reason to be glued to the words of the governor Ignazio Visco. Italian shares were plunging and … Continue reading
(5 June 2018, AFR, p14, by Stella Qiu and Ryan Woo) ‘China’s debt crackdown is a key risk to the country’s economic growth and will have significant knock-on effects for the global economy, particularly emerging markets with high commodity dependence or close Chinese trade links, Fitch Ratings said. Beijing’s campaign to put a lid on … Continue reading
