(16 June 2017, AFR, p32, by Philip Baker) ‘It’s not often you get the US Federal Reserve hiking interest rates at the same time as predictions are made that Dow Jones can reach a new high-water mark. But that’s what’s happening now. The blue-chip index closed at a record high of 21,374 early on Thursday morning, … Continue reading
(16 June 2017, The Age, BusinessDay, p25, Myriam Robin) ‘A record 44 per cent of global fund managers believe sharemarkets, particularly those in the US, to be overvalued after years of overstimulative monetary policy, according to a monthly Bank of America Merrill Lynch survey. In the note, titled “Fed up with Bubbles”, three quarters of … Continue reading
(16 June 2017, The Age, BusinessDay, p25, Myriam Robin) ‘Voluntary contributions into superannuation funds doubled between April to May, and are so far having another strong month as investors race to beat a deadline on low-tax superannuation concessions, according to one of the country’s largest superannuation managers. Superannuation experts said there was no doubt this … Continue reading
(15 June 2017, AFR, p40, by Alexandra Cain) ‘Mining commodity prices are expected to decline over the next 12 months, largely as a result of slowing demand from China. But supply dynamics in markets such as iron ore and oil will also play a role in moving prices. “Our negative outlook is driven by end-user … Continue reading
(15 June 2017, AFR p37, by Adam Minter) ‘At more than 600 metres, Shanghai Tower is the world’s second-tallest building. It looms over its neighbours – the world’s ninth and 19th tallest buildings – in a super-cluster of super tall structures unlike any other in the world. The only problem? Finding people to work there: … Continue reading
(15 June 2017, AFR, p30, by Philip Baker) ‘The combination of debt, a slowing economy and concerns about property prices topping out doesn’t seem to bother the business sector but it sure has spooked consumers. Not for the first time business is upbeat at the same time as consumers are anything but. One of them … Continue reading
[COMMENT: The debate continues about active versus passive funds management. It seems as though there is something to be said for an active investor who remains nimble. But do note the details of the accompanying bar chart “Returns for different hedge fund styles (%pa)” (From 2005 till now, and Past 10 years) – with Activist, … Continue reading
(15 June 2017, AFR, p19, by James Eyers) ‘A mortgage “mystery shopping” exercise by Macquarie has found banks are offering first-time home buyers in Sydney substantially lower loan amounts after tightening living expense assumptions and applying more conservative interest rate buffers. Members of analyst Victor German’s team at Macquarie posed as potential bank customers at…’ … Continue reading
(15 June 2017, AFR, p12, by Kevin Yao and Elias Glenn) ‘China’s economy generally remained on solid footing in May, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in coming months.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)
[COMMENT: Very interesting story … a good warning for all of us…] (15 June 2107, The Age, BusinessDay, p23, Jorge Branco) ‘Five people have been charged over a cold calling scam that allegedly milked $30 million out of about 2000 victims across Australia. Queensland police raided a series of Gold Coast businesses on Wednesday, along … Continue reading
(14 June 2017, AFR, p28, by Steve Johnson) ‘…Evidence for a widespread economic recovery in Europe is becoming irrefutable. The first place to look is in the skies. Forager monitors more than 20 major European airports. The 13 airports that report in a timely fashion suggest the continent is booming. Passenger numbers over the first … Continue reading
(14 June 2017, AFR, p25, by James Frost) ‘Surveillance by the Australian Securities and Investments Commission found four out of every five fund managers failed some aspect of compliance in the regulator’s annual review of the sector. The operation involved 28 fund managers with $100 billion in assets under management and was conducted in 2016. … Continue reading
[COMMENT: Most technical analysts who might have been holding this stock in late 2016, would have spotted the downtrend in late 2016, which continued into 2017, and they most likely sold their position to lock in profits and preserve their capital. See the chart below.] (14 June 2017, AFR, p19, by Simon Evans) ‘In just … Continue reading
(14 June 2017, AFR, p6, by Jacob Greber) ‘An influential survey – watched closely by the Reserve Bank of Australia – which showed businesses have just enjoyed the best month since the 2008 global financial crisis may be giving a more accurate reading of how the economy is doing than last week’s weather-blighted GDP report. … Continue reading
(14 June 2017, AFR, p3, by Matthew Cranston) ‘Food retailer Sumo Salad’s decision to withdraw up to 14 stores from Westfield shopping centres after failing to renegotiate leases is the “canary in the coal mine”, say tenant advocates who monitor Australia’s retailing scene. SumoSalad co-founder Luke Baylis on Tuesday told The Australian Financial Review the company … Continue reading
(14 June 2017, AFR, p3, by Sue Mitchell) ‘The weak outlook for retail spending has prompted renewed calls for personal tax cuts to offset rising household debt, anaemic wages growth and higher living costs. After the toughest quarter for retailers in six years, Deloitte Access Economics expects retail spending growth to slow to 3 per … Continue reading
(14 June 2017, The Age, BusinessDay, p24, Reuters) ‘A measure of business conditions eased just a touch from decade highs in May with growth reported across all sectors, a sign the economy may have picked up speed after a sluggish first quarter. National Australia Bank surveyed more than 400 firms to compile its index of … Continue reading
(14 June 2017, The Age, BusinessDay, p19, Elizabeth Knight) ‘It is difficult to see how Ten Network can escape the corporate undertaker after losing the support of the three billionaires, Lachlan Murdoch, James Packer and Bruce Gordon, who until last weekend had been keeping it afloat. The network has a $200 million loan with the Commonwealth … Continue reading
(14 June 2017, The Age, BusinessDay, p19, Lucy Battersby) ‘The board of Network Ten has until Thursday to consider the company’s future, after two key shareholders pulled their backing for the broadcaster’s debt. The board must now decide whether it places Ten into voluntary administration or finds a new source of funding and restructures the … Continue reading
(13 June 2017, AFR, p27, by John Kehoe) ‘A huge sell off in American technology stocks on Friday signalled the so-called “FAANG” momentum trade has abruptly reversed and raised fears about a possible tech bubble bursting. Share prices of the world’s high-performing tech companies, Facebook, Amazon, Apple, Netflix and Google’s (FAANG) parent Alphabet, all plunged … Continue reading
(13 June 2017, The Age, BusinessDay, p24, Darren Gray) ‘Confidence levels have surged among Victorian and NSW farmers thanks to record beef, lamb and mutton prices, and favourable seasonal conditions in Victoria and the NSW Riverina, a survey shows. The rising farmer optimism is welcome news for regional and state economies, with confident farmers much … Continue reading
(13 June 2017, The Age, BusinessDay, p23, Reuters) ‘British business confidence has fallen sharply since last Thursday’s inconclusive election that left Prime Minister Theresa May weakened ahead of Brexit talks, according to a survey by the Institute of Directors published on Monday. The survey of nearly 700 members of the business group also exposed deep … Continue reading
(12 June 2017, The Age, BusinessDay, p18, Samuel Potter) ‘A sell-off in technology shares spoiled an otherwise buoyant day in the US stock market as companies from Apple to Nvidia tumbled.’ Read more at SMH.com.au
(10 June 2017, CNBC online, Patti Domm) ‘Big tech was slammed Friday as investors took profits from the group, which some fear has become a massive market bubble. The sell-off accelerated in afternoon trading, with the Nasdaq falling 2.4 percent, and names like Facebook and Apple, down 4 percent. The S&P tech sector was down … Continue reading
(10 June 2017, AFR, p34, by Duncan Hughes) ‘A 73-year-old grandfather may have to sell his retirement property nest egg after a near-1200 per cent increase in land tax in 12 months, or a rise from $5300 to more than $67,900.’ <snipped…> ‘Flawed process – Property specialists claim the state government land tax grab is hitting … Continue reading
(10 June 2017, AFR, p12, by John Kehoe) ‘Sacked Federal Bureau of Investigation director James Comey has accused Donald Trump of spreading “lies” about the FBI and suggested the US President pressured him to curtail the agency’s investigations into Russia’s meddling in the 2016 US election. But in a partial vindication for Mr Trump, the former FBI boss … Continue reading
(10 June 2017, AFR, p11, by Geoff Winestock) ‘Britain faces a long period of uncertainty that could delay Brexit talks and it will be doubly hard without a parliamentary majority. Citgroup said in a research note that it expected Theresa May would have to resign after losing a parliamentary majority even if the Conservatives cling … Continue reading
(10 June 2017, AFR, p11, by James Chessell) ‘Theresa May’s long-term future as prime minister is in doubt after her gamble on an snap election to shore up her Brexit negotiating position backfired dramatically, leaving Britain with a hung parliament less than two weeks before critical talks with Brussels are due to begin. In an … Continue reading
(9 June 2017, AFR, p32, by Philip Baker) ‘It’s that time of the year again when all the bears come out to play. Hot on the heels of May, which is usually a bad month for shares, the history books show that June isn’t much better. Blame it on the confession season, tax loss selling … Continue reading
(9 June 2017, AFR, p31, by James Thomson) ‘The Masters of the Universe are getting nervous, and there’s one big thing on their mind: the return of GFC-like conditions. While Morgan Stanley’s chairman and chief executive James Gorman provided an upbeat assessment of the world economy in an exclusive interview with The Australian Financial Review … Continue reading
(9 June 2017, AFR, p12, by Sue-Lin Wong) ‘China reported stronger-than-anticipated exports and imports for May despite falling commodity prices. The data suggested the economy is holding up better than expected despite rising lending rates and a cooling property market. Concerns over China landed squarely back on global investors’ radar after Moody’s Investors Service downgraded … Continue reading
(8 June 2017, AFR, p37, by Michael Bleby) ‘A burst of apartment-building, along with growth in infrastructure work and commercial activity lifted a leading indicator of construction to its highest level in more than two years in May. The monthly Performance of Construction Index rose 4.8 points to 56.7 last month, the fourth straight month … Continue reading
(8 June 2017, AFR, p12, By Jesús Aguado and Francesco Guarascio | MADRID/BRUSSELS) ‘European authorities stepped in to avert a collapse of Spain’s Banco Popular POP.MC following a run on the bank, orchestrating a last-minute rescue on Wednesday by Santander (SAN.MC), the country’s biggest lender. Owners of Popular bonds faces losses of some 2 billion … Continue reading
(8 June 2017, AFR, p1, by Jacob Greber) ‘A struggling household sector – which is garnering the smallest slice of the nation’s economic pie in decades – is casting renewed doubts over official predictions of a near-term rebound from a first-quarter dip in growth. Hampered by a series of headwinds in the opening months of … Continue reading
(8 June 2017, The Age, p11, Peter Martin , Eryk Bagshaw) ‘The OECD has named house prices as the biggest domestic threat to economic growth as new figures push annual growth to its lowest point since the global financial crisis. The Australian economy grew just 1.7 per cent in the 12 months to March, down from 3 … Continue reading
(7 June 2017, AFR, p30, by Michael Bleby) ‘Sydney asking prices of units and houses fell while listings rose more than usual in May, according to SQM Research, with the data adding weight to the notion that the NSW capital’s housing market is slowing.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial) … Continue reading
(7 June 2017, AFR, p24, by Sally Patten) ‘The figures – and the trend – are breathtaking. Last week shares of Amazon topped $US1000 for the first time after surging 33 per cent this year. The e-commerce behemoth is now capitalised at $US475 billion $630 billion), nearly double the value of America’s largest physical retail … Continue reading
(7 June 2017, AFR, p22, by Rachael Ward) ‘A 40 per cent plunge in the price of sugar (see chart at right) has less to do with consumers turning away from sugary drinks and unhealthy food and is instead being driven by a looming supply surplus and speculators shorting the market. Sugar broke an eight-day … Continue reading
(7 June 2017, AFR, p23, by Simeon Kerr) ‘The unprecedented move by Saudi Arabia, the United Arab Emirates, Egypt and Bahrain to sever diplomatic ties and cut transport links with Qatar pits important US allies in the Middle East against each other. The action on Monday is an attempt to isolate the Gulf state because … Continue reading
(7 June 2017, AFR, p8, by Angela Macdonald-Smith) ‘Fresh evidence has emerged of the supply shock hitting industrial users of gas on the east coast, where shortages have driven up prices to levels some cannot afford. Short-term gas prices in the March quarter were double the levels of a year earlier, driving a 16 per … Continue reading
(7 June 2017, AFR, p4, by Michael Bleby) ‘Housing price growth peaked earlier this year and will slow to a pedestrian 1.9 per cent by next year as lending constraints tighten and other measures such as taxes on vacant properties take hold, ANZ says in a new research report. Population increase and demand for housing … Continue reading
(7 June 2017, The Age, BusinessDay, p23, Darren Gray) ‘Shares in Australia’s biggest dairy processor Murray Goulburn plummeted by 14.5 per cent to 73.5¢ on Tuesday, hitting all-time lows. The stock opened at 85¢ on Tuesday and went downhill fast, closing at a level that is barely half of what it was trading at last … Continue reading
(6 June 2017, AFR, p33, by Matthew Cranston) ‘Creditors for collapsed Brisbane apartment builder CMF Projects have raised concerns about ever recovering money owed to them after company directors said failed attempts to find funding for the company in its final days had pushed it to the brink.’ <snipped…> ‘The builder, which has completed at least … Continue reading
(6 June 2017, AFR, p28, by Myriam Robin) ‘The ASX’s key defensive stocks, which have soared since November, are trading at record highs and highly inflated valuations, making them highly vulnerable to a sharp correction should inflationary expectations pick up. For the past six months, yield-hungry investors have poured into Sydney Airport, Transurban and APA … Continue reading
(6 June 2017, AFR, p8, by Simon Evans ) ‘Most luxury car brands generated robust sales growth in May with confidence strong at the top end of the new vehicle market which has a close link to the buoyant property market and profits made by business owners. New vehicle sales for the middle market showed … Continue reading
(6 June 2017, AFR, p3, by Jacob Greber) ‘Fears that the first quarter saw a fall in gross domestic product have eased after official data showed a surge in first-quarter company profits and inventories. As separate figures recorded the third straight month of growth in job advertisements in May, the Australian Bureau of Statistics said corporate … Continue reading
(6 June 2017, The Age, BusinessDay, p25, Reuters) ‘Job advertisements rose for a third straight month in May, a promising sign for continued labour demand even as official figures on employment remain patchy. A monthly survey by Australia and New Zealand Banking Group showed total job advertisements rose 0.4 per cent to 169,994 in May, … Continue reading
(6 June 2017, The Age, BusinessDay, p25, Peter Martin) ‘Higher commodity prices pushed up company profits almost 40 per cent in the year to March at a time when the wage bill grew 0.9 per cent. The so-called partial indicators released by the Bureau of Statistics ahead of Wednesday’s national accounts have company profits climbing … Continue reading
(5 June 2017, AFR, p34, by Michael Bleby) ‘A pick-up in new home sales in April failed to halt the bigger picture of a slowdown in the market, with total sales down 3.3 per cent from a year earlier. The latest Housing Industry Association report recorded a monthly gain in NSW, Victoria and SA, while Queensland … Continue reading
(5 June 2017, AFR, p3, by Matthew Cranston) ‘Sydney and Melbourne auction clearance rates slipped again on the weekend and agents selling the most expensive homes said the intensity of demand for established homes had started to ease. While the weekend results showed the second and third consecutive weeks of lower clearance rates for Melbourne and Sydney … Continue reading
