(18 July 2019, AFR, p40, Nila Sweeney, Reporter) ‘Housing sentiment among property professionals has improved after the federal election removed uncertainties over changes to negative gearing and capital gains tax and amid signs that price falls are finally easing. The NAB Residential Property Survey for the second quarter of 2019 showed a seven-point rise in … Continue reading
(18 July 2019, AFR, p12, Jacob Greber, United States Correspondent) ‘Washington | America’s chronically dysfunctional budgeting process is headed towards a crisis that could upend financial markets, smash confidence and even trigger recession. With the House of Representatives set to go on a lengthy summer recess at the end of next week through to September … Continue reading
(18 July 2019, AFR, p4, Matthew Cranston, Economics correspondent) ‘The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity into the future, has shown a strong turnaround in the month to June driven by sharemarket gains, better than expected dwelling approval numbers and higher commodity prices. The index, which measures likely growth … Continue reading
[COMMENT: Is this a bad foreboding for the USA in the months ahead?] (17 July 2019, AFR, p11, By Ana Swanson and Jim Tankersley, New York Times) ‘WASHINGTON — President Trump on Monday portrayed America as being on the winning end of his trade war, saying tariffs are punishing China’s economy while generating billions of … Continue reading
(17 July 2019, The Age, Business, p23, Stephen Bartholomeusz, Senior Business Columnist) ‘The US quarterly reporting season kicked off on Monday. Despite low expectations for corporate earnings the sharemarket eked out yet another record. Expectations are very low. Consensus forecasts for the June quarter earnings are for a decline of 2.8 per cent. Of those … Continue reading
(16 July 2019, AFR, p27, Richard Henderson) ‘New York | Equity investors are bracing for a second successive drop in US quarterly profits, led by the technology and materials sectors, that could undermine a record-breaking run in the sharemarket. Blue-chip companies across America are expected to reveal a 2.8 per cent drop in earnings per … Continue reading
(16 July 2019, AFR, p10, Michael Smith, China Correspondent) ‘Shanghai | China’s economy grew at its slowest pace in almost three decades in the second quarter as US President Donald Trump’s trade tariffs weighed on exports and weaker property investment offset Beijing’s stimulus efforts. Traders also warned that restrictions on Australian coal imports would remain … Continue reading
(16 July 2019, AFR, p4, Vesna Poljak) ‘Business conditions have recovered strongly in response to the Morrison government’s $158 billion tax cut package and stability in the housing market, a poll of 251 chief executives finds. The Executive Connection’s quarterly confidence index rallied 16 points to 113 points, signifying a return to positive territory and … Continue reading
(16 July 2019, The Age, Business, p23, By Stephen Bartholomeusz) ‘China’s economy is slowing markedly as the impact of the Trump administration’s trade war on its economy continues to bite. Its June quarter numbers show China is on track to produce its weakest growth in nearly 30 years. The economy grew at “only’’ 6.2 per … Continue reading
(16 July 2019, The Age, p6, By Eryk Bagshaw) ‘Sydney and Melbourne’s most expensive suburbs are more susceptible to interest rate changes than cheaper areas, with the value of coastal and inner-city properties falling more sharply for up to two years after Reserve Bank hikes. A 30-year study of the impact of interest rate moves … Continue reading
(15 July 2019, AFR, p32, Natasha Gillezeau) ‘House prices in Brisbane could surge as much as 20 per cent over the next three years as economic growth underpins buying in the city’s relatively affordable residential stock, according to BIS Oxford Economics. The recovery will proceed more moderately in Sydney and Melbourne, with median house prices … Continue reading
(15 July 2019, AFR, p5, Su-Lin Tan) ‘The revival in home-buying demand across Sydney and Melbourne shows no signs of letting up although the key test for the market won’t come until spring, which is expected to bring a surge in properties for sale. Buyers flocked to good homes in popular suburbs in record winter … Continue reading
(15 July 2019, AFR, p1, Matthew Cranston) ‘Pessimistic views on the economy are misguided because there was “heaps of stimulus” in the pipeline from the Morrison government’s income tax cuts and the Reserve Bank’s two interest rate cuts. Deloitte Access Economics partner Chris Richardson said in its latest business outlook report that people had misinterpreted the … Continue reading
(13 July 2019, AFR, p14, Enda Curran) ‘An unexpected contraction in Singapore’s economy in the second quarter sent a warning shot to the world economy as simmering trade tensions wilt business confidence and activity. Gross domestic product in the export-reliant city state shrank an annualised 3.4 per cent in the quarter from the first three … Continue reading
(13 July 2019, AFR, p2, Ingrid Fuary-Wagner, Reporter) ‘Nervous sellers and buyers starved of options are striking deals soon after homes are listed for sale rather than risk going to auction in an unpredictable market. The rate of homes sold before auction in Sydney has increased from about 17 per cent of properties scheduled to … Continue reading
(13 July 2019, AFR, p1, Matthew Cranston, Economics correspondent) ‘Savers have never been worse off after interest rates on standard savings accounts were slashed below 2 per cent by ANZ and NAB on Friday, with other banks are likely to follow after the latest Reserve Bank rate cuts. The interest savers can earn will get … Continue reading
(12 July 2019, CNBC online, Fred Imbert) ‘The Dow Jones Industrial Average rallied to a record high on Thursday, led by UnitedHealth shares, after testimony by Federal Reserve Chair Jerome Powell this week that signaled easier monetary policy could be implemented later this month. The 30-stock average broke above 27,000 for the first time in … Continue reading
(12 July 2019, AFR, p13, Michael Smith, China Correspondent) ‘Shanghai | China’s economic growth is expected to fall to a near 30-year low in the second quarter, as the full impact of Donald Trump’s trade tariffs kick in. This will add to pressure on president Xi Jinping to keep the world’s second-largest economy stable as … Continue reading
(12 July 2019, AFR, p7, Nick Lenaghan, Property Editor) ‘Home loans commitments fell again in May and the annual decline in mortgage lending is now at its steepest in the past decade as the credit squeeze takes its toll on the residential market. The latest Australian Bureau of Statistics figures show the value of housing … Continue reading
(12 July 2019, The Age, p14, By Simon Johanson) ‘Home lending has collapsed to its worst level since the global financial crisis as households shy away from taking on more debt despite house prices showing signs of bottoming out. Official figures show the value of housing finance issued in May fell 2.4 per cent and … Continue reading
(12 July 2019, The Age, p9, By Shane Wright) ‘Australia’s climbing debt levels are hurting the broader economy, with ground breaking research from the Reserve Bank showing a “debt overhang” that is directly hitting households and their ability to spend. In research that could challenge the Morrison government’s hopes for a tax refund-fuelled bounce in … Continue reading
(12 July 2019, The Age, p2, By Cara Waters) ‘Growth in the online takeaway food sector, which is dominated by Uber Eats and Deliveroo, grew by a mere 4 per cent in May, a far cry from heady growth rates of up to 56 per cent in 2016 as more consumers turn to having a … Continue reading
(11 July 2019, The Age, p4, By Shane Wright) ‘The prospect of tax cuts and cheaper mortgages has failed to boost the spirits of Australian consumers with confidence among shoppers falling to a “troubling” two-year low as signs grow of a slowdown in home building. The keenly watched Westpac-Melbourne Institute measure of consumer sentiment slipped … Continue reading
(11 July 2019, AFR, p37, Nick Lenaghan, Property Editor) ‘Vacancy rates in Sydney and Melbourne, the two largest office markets, have nudged up in the past quarter as clouds gather over the broader economic outlook while resource-centred markets in Brisbane and Perth have improved. The JLL figures show Sydney’s vacancy rate popped out to 4.1 … Continue reading
(11 July 2019, AFR, p32, Ingrid Fuary-Wagner, Reporter) ‘Sydney has experienced the biggest percentage fall in rents in more than 15 years as the “last legs” of the city’s apartment boom gives an extra boost of supply to the market and tenants are left with more choice than ever. Over the year, asking rents for … Continue reading
(11 July 2019, AFR, p12, Stella Qiu and Kevin Yao) ‘Beijing | China’s producer prices flatlined in June on lower oil prices and weak global demand, fuelling concerns that a slowdown in manufacturing from a bruising trade war will further drag on growth in the world’s second-biggest economy. The producer price index (PPI) showed no … Continue reading
(11 July 2019, AFR, p9, Matthew Cranston, Economics correspondent) ‘Consumer confidence has fallen to a two-year low despite two RBA interest rate cuts and the Morrison government’s $158 billion income tax package, the latest Westpac-Melbourne Institute Index shows. Westpac senior economist Matthew Hassan said the 4.1 per cent fall in sentiment to 96.5 in July, … Continue reading
(11 July 2019, AFR, p4, Matthew Cranston, Economics correspondent) ‘Growth in spending on infrastructure construction may shrink faster than expected, while the deepening residential construction downturn will be sharper but shorter than Treasury expects, according to new forecasts based on a survey of 400 companies. Construction and building activity figures released on Wednesday by the … Continue reading
(11 July 2019, AFR, p4, John Kehoe, Senior Writer) ‘Financial authorities and home buyers believe the worst of the housing downturn is over, with regulators saying there has been a stabilisation of Sydney and Melbourne real estate markets and the slowdown in property loans levelling off. Consumers believe it is the best “time to buy … Continue reading
(10 July 2019, AFR, p31, Karen Maley, Columnist) ‘Central banks are struggling to keep economic activity on an even keel as they combat a downturn in financial cycles. Forget the business cycle. Stop fretting over movements in the yield curve. Instead, keep an eye on the financial cycle if you want to know if an … Continue reading
(10 July 2019, AFR, p30, New York Times, By Jeanna Smialek, Jack Ewing and Ben Dooley) ‘Central bankers have a favorite mantra: Patch the roof while the sun is shining. But 10 years after the Federal Reserve worked alongside the European Central Bank and the Bank of Japan to bring the global economy back from … Continue reading
(10 July 2019, AFR, p4, Matthew Cranston, Economics correspondent) ‘Business conditions have rebounded following the federal election and the first of two recent interest rate cuts, with improvements in employment and trading conditions in the month of June. The NAB Business conditions index for June increased 3.4 points, however confidence surprisingly slipped and the retail … Continue reading
(10 July 2019, AFR, p1, Matthew Cranston and David Marin-Guzman) ‘Wage growth appears to be picking up for the low-paid, with banks, retail and fast-food giants promising higher pay increases for most workers in new enterprise agreements. The wage rises covering some of the economy’s biggest employers such as Westpac and McDonald’s have seen increases … Continue reading
(9 July 2019, AFR, p9, New York Times, By Matina Stevis-Gridneff) ‘ATHENS — Four years ago almost to this day, Greece came a breath away from leaving the euro. People formed quiet, somber lines outside banks to take out small amounts of cash, as a lockdown on the financial system barred them from accessing their … Continue reading
(9 July 2019, AFR, p4, Su-Lin Tan, Reporter) ‘The housing recovery is slowly creeping into the outer suburbs of Sydney and Melbourne as confidence returns, but a boom-time price rise is not likely, real estate agents say. The weekend saw a strong leap in preliminary auction clearance rates for big auction markets Sydney and Melbourne … Continue reading
(9 July 2019, The Age, Business, p27, By William McInnes) ‘Australian shares fell heavily on Monday after a solid US non-farm payrolls print dampened market expectations the Federal Reserve would cut rates more than twice this year. The S&P/ASX 200 Index posted its biggest one-day fall since June 3, closing 79.1 points, or 1.2 per … Continue reading
(9 July 2019, The Age, World, p15, By Elena Becatoros) ‘Athens: Greek conservative opposition leader Kyriakos Mitsotakis has comfortably won a parliamentary election as voters rejected Prime Minister Alexis Tsipras after a tumultuous four years. With more than 80 per cent of votes counted, Mitsotakis’ New Democracy party had 39.7 per cent of the vote … Continue reading
(9 July 2019, The Age, p4, By Shane Wright) ‘Up to a third of homes in parts of Melbourne and Sydney are being sold at a loss with the rate likely to climb higher as a combination of falling prices and owners wanting to offload their properties is wiping hundreds of millions of dollars from … Continue reading
(8 July 2019, AFR, p31, Nick Lenaghan, Property Editor) ‘A series of trades in landmark office towers has helped propel the tally in commercial real estate deals for the 2019 financial year to a record $42.6 billion, a 22 per cent increase in transactions value over the previous year. The Cushman & Wakefield figures also … Continue reading
(8 July 2019, AFR, p4, Nick Lenaghan, Property Editor) ‘The housing recovery is gaining momentum as buyers, buoyed by better borrowing conditions, stake their claim in a smaller pool of homes on the market. With fewer properties on the market, buyers’ appetite pushed the preliminary clearance rate in Sydney to 78.2 per cent from the … Continue reading
(5 July 2019, AFR, p8, Matthew Cranston, Economics correspondent) ‘The federal government tax cut package delivers $7.5 billion into the pockets of 10 million people in the next few months, equal to another two RBA interest rate cuts. The first stage of the tax package doubles the low and middle-income tax offset, which means an … Continue reading
(4 July 2019, AFR, p29, Su-Lin Tan, Reporter) ‘The downturn in home building has had a small reprieve after the number of national dwellings approved for construction rose slightly in May, not enough however to point to a recovery, economists say. New national dwelling approvals rose by a very weak 0.7 per cent in May … Continue reading
(4 July 2019, AFR, p9, Tim Boyd, Reporter) ‘Renewable energy supplied more power to the market than brown coal this financial year just ended for the first time ever, however price relief for consumers is still to come as wholesale prices rose since last year. Brown coal generation fell 13 per cent in the second … Continue reading
(4 July 2019, AFR, p8, Simon Evans, Senior Reporter) ‘New car sales tumbled in June by 9.6 per cent to extend a run of softness in the vehicle market to 15 consecutive months. The chief executive of industry body the Federal Chamber of Automotive Industries, Tony Weber, said economic conditions were still very difficult while … Continue reading
(4 July 2019, AFR, p7, Matthew Cranston, Economics correspondent) ‘Monthly iron ore exports busted through the $10 billion mark for the first time ever and building approvals data beat market expectations on Wednesday. But some economists remained cautious that the Reserve Bank could cut interest rates again next month because unemployment might not have improved.’ … Continue reading
(3 July 2019, CNBC online, Fred Imbert) ‘Stocks closed at record highs on Wednesday as investors bet on a potential rate cut from the Federal Reserve later this month after the release of weaker-than-expected economic data. The Dow Jones Industrial Average gained 179.32 points to end the day at 26,966, notching intraday and closing all-time … Continue reading
(2 July 2019, AFR, p3, Ingrid Fuary-Wagner, Reporter) ‘Property price growth in Sydney and Melbourne is in positive territory for the first time since the market peaked in 2017, as lower mortgage rates and improved buyer sentiment in combination with a dearth of new listings spurs a market recovery. Values grew slightly by 0.2 per … Continue reading
(1 July 2019, AFR, p3, Duncan Hughes, Reporter) ‘The nation’s major mainland capitals are at the bottom of the property market after months of declining clearance rates, price falls and weakening market sentiment, according to analysis by Herron Todd White, one of the nation’s largest valuation companies. Melbourne, Perth, Darwin and Brisbane are at the … Continue reading
(1 July 2019, AFR, p18, William McInnes, Reporter) ‘The moderating housing market is set to only see subdued growth in the next few months, according to Australian economists who said tighter credit conditions, a weaker economy and a lack of investors would keep prices low. According to responses from The Australian Financial Review’s quarterly survey … Continue reading
(1 July 2019, AFR, p6, Peter Ker, Resources reporter) ‘Soaring iron ore and coking coal prices will drive the value of Australian mining and energy exports to a record high over the next year, and the Department of Industry says a trade war between the world’s two biggest economies could provide a perverse boost to … Continue reading
