(14 September 2019, AFR, p23, Sue Mitchell, Senior Reporter) ‘With wages stagnating and the cost of living rising, discount department store chain Best & Less should be thriving. But Andrew Moore, chief financial officer of the 196-store chain, says trading is tougher than it was 12 months ago and recent stimulus in the form of … Continue reading
(14 September 2019, AFR, p12, Yuko Takeo and Piotr Skolimowski) ‘Frankfurt | The European Central Bank cut interest rates further below zero and revived bond purchases after president Mario Draghi overcame critics of his stimulus policies to make a final run at reflating the euro-area economy. The ECB reduced the deposit rate to minus 0.5 … Continue reading
(13 September 2019, AFR, p34, Larry Schlesinger, Reporter) ‘The median price of a housing lot in Melbourne’s growth corridors fell 4 per cent to $312,000 in the three months to June, according to new figures from real estate group Oliver Hume. Discounting for incentives, which average between $15,000 and $30,000 per lot but are higher … Continue reading
(13 September 2019, AFR, p34, Duncan Hughes and Michael Bleby) ‘Mortgage brokers and banks say July’s strong home loan growth is continuing as investors and owner-occupiers take advantage of lower serviceability ratios and become more confident about stabilising prices. New home loan commitments jumped 5.1 per cent – the biggest month-on-month gain in four years … Continue reading
(13 September 2019, AFR, p30, Patrick Commins, Columnist) ‘With a hot northern hemisphere summer behind us, the mood in global markets has become more temperate in recent weeks. Sharemarkets have responded positively to the changing vibe. Aussie stocks fell 3.1 per cent last month, but are up 0.5 per cent since. American equities have bounced … Continue reading
(13 September 2019, AFR, p13, Jeff Mason and Yawen Chen) ‘Washington/Beijing | US President Donald Trump on Thursday (AEST) welcomed China’s decision to exempt some US anti-cancer drugs and other goods from its tariffs and announced a short delay to scheduled tariff hikes on billions worth of Chinese goods. Stock markets in Asia rose on … Continue reading
(13 September 2019, AFR, p3, Matthew Cranston, Economics correspondent) ‘Luxury car sales have risen for the second month in a row, matching the recovery in the housing market, in a signal the economy could be getting back on track. Overall luxury car sales in the year to August were up 0.6 per cent following a … Continue reading
(12 September 2019, AFR, p38, Nila Sweeney, Reporter) ‘Australia’s biggest property markets are just coming out of the downturn but some areas have already bolted, new data from CoreLogic shows. Over the past 12 months, a number of lifestyle suburbs and affluent areas around the country have surged by at least 10 per cent even … Continue reading
(12 September 2019, AFR, p13, Michael Smith, China Correspondent) ‘Hong Kong | More than a quarter of American companies in China are re-directing investment elsewhere as concerns about a slowdown in the world’s second-largest economy and a prolonged Sino-US trade war drive confidence levels to their lowest in years. A key annual survey of more … Continue reading
(12 September 2019, AFR, p10, Matthew Cranston, Economics correspondent) ‘Economists are growing anxious that tax cuts are not showing enough of a stimulatory effect and that consumers will save more and spend less than first thought. The Westpac-Melbourne Institute Consumer Sentiment Index fell 1.7 per cent in September and revealed that half of tax cut … Continue reading
(11 September 2019, AFR, p29, Jonathan Shapiro, Senior Reporter) ‘High valuations, low economic growth and a tide of money flowing into passive investments means we are on the cusp of “a golden age for short selling”. That’s the view of Australia’s top equity hedge fund managers that say the opportunity to profit from betting against … Continue reading
(11 September 2019, AFR, p25, Stirling Larkin, Columnist) ‘Recessions hit when people aren’t talking about them, they’ve never struck when pundits call them ahead of time. While wisdom can be found in crowds, the consensus is not always correct. That’s certainly the case with the current consensus that the global economy, led by the US, is … Continue reading
(11 September 2019, AFR, p17, Sue Mitchell, Senior Reporter) ‘The ink is barely dry on retailers’ full year accounts but investors are anxiously awaiting first quarter and annual meeting sales updates to see if an encouraging uptick in consumer spending in the first few weeks of 2020 is sustained. Retailers such as Woolworths, Wesfarmers, JB … Continue reading
(11 September 2019, AFR, p11, Hans van Leeuwen, Europe correspondent) ‘London | British Prime Minister Boris Johnson is defiantly clinging to his “do or die” promise to deliver Brexit on Halloween, despite the Queen on Monday (Tuesday AEST) signing a law that forces him to ask the European Union for a three-month delay if there’s … Continue reading
(11 September 2019, AFR, p5, Jenny Wiggins, Infrastructure Reporter) ‘Queensland is in an “infrastructure recession” because the state government won’t sell assets or raise more debt to push ahead with new projects such as the $10 billion Inland Rail line, hurting the state’s economy, contractors say. Construction work in Queensland has now fallen for five … Continue reading
(11 September 2019, AFR, p5, Matthew Cranston, Economics correspondent) ‘Tax cuts and interest rate cuts are not having the intended effect on consumption, according to two of the most reliable business surveys, which both point to a further deterioration in the economy. The NAB Business Survey showed confidence and conditions declined in August, with a … Continue reading
(11 September 2019, AFR, p1, Simon Evans and John Kehoe) ‘A greater reluctance by young people to become car owners is worsening the slide in new vehicle sales that has now lasted for longer than the global financial crisis in 2008 and 2009. A 10.1 per cent plunge in the number of new vehicles sold … Continue reading
(11 September 2019, AFR, p1, Jacob Greber, United States Correspondent) ‘Washington | The fast-deteriorating record of debt, deficits and inequality in Donald Trump’s United States is creating an unprecedented policy challenge that left unattended will “profoundly shake” the very core of the country’s financial, political and social fabric, says Australia’s diplomatic envoy to New York. … Continue reading
(11 September 2019, The Age, Business, p23, Stephen Bartholomeusz) ‘The impact of the trade war with the US is now being reflected in a steady deterioration of China’s economic data even before the most recent tariff imposts have had a chance to bite. This week’s trade data shows that both its exports and imports are … Continue reading
(10 September 2019, AFR., p37, Nick Lenaghan, Property Editor) ‘The latest reporting season has revealed sharp differences across the listed property sector with fund managers enjoying strong conditions even as the outlook deteriorates for retail landlords, according to Citi. The property stocks with funds management businesses surprised on the upside – Charter Hall, Goodman, Lendlease … Continue reading
(10 September 2019, AFR, p20, Daniel Leussink) ‘Tokyo | Japan’s economy grew at a slower pace than initially estimated in the second quarter as the US-China trade war prompted a downward revision of business spending, intensifying calls for the central bank to deepen stimulus this month. Weakness in the global economy and worsening trade protectionism … Continue reading
(10 September 2019, AFR, p15, Sue Mitchell, Senior Reporter) ‘Sales of groceries such as toilet paper and nappies are falling in supermarkets as shoppers seek better value elsewhere or cut back consumption. According to research by IRI, sales of non-food groceries fell 0.7 per cent to $15.1 billion in the 12 months ended May while … Continue reading
(10 September 2019, AFR, p13, Peter Ker, Resources reporter) ‘Billions of dollars worth of Australian coal projects are under threat as slumping prices render about 19 per cent of the world’s existing seaborne thermal coal supply loss-making. Adani’s Carmichael and Whitehaven’s Vickery mine projects were lucrative proposals in mid-2018 when thermal coal prices soared to … Continue reading
(10 September 2019, AFR, p5, Matthew Cranston, Economics correspondent) ‘Confidence in the rural sector has turned down in key states, despite strong commodity prices, and the outlook is only set to get worse as the drought continues to drag on growth. NAB’s latest agribusiness banker survey showed neither interest rate cuts nor tax cuts were … Continue reading
(10 September 2019, The age, Business, p27, David Scott, Lucy Battersby) ‘Following months of civil unrest that has rattled financial markets, ratings agency Fitch has decided to downgrade Hong Kong’s long-term foreign-currency credit rating by one notch from AA+ to AA on Monday.’ <snipped…> ‘“The latest PMI data reveal a Hong Kong SAR economy flirting … Continue reading
(9 September 2019, The Age, p12, By Dominic Powell) ‘Australia’s biggest retailers, such as Coles, Woolworths and JB Hi-Fi, have grown their online sales by more than 20 per cent in the past financial year, creating a bright spot in an otherwise gloomy trading environment. Online sales at electronics retailer JB Hi-Fi jumped 23 per … Continue reading
(9 September 2019, AFR, p34, Louis Hansen) ‘… The couple is part of an endangered species – owners of a new Bay Area home. In a region of more than 7 million people, just 266 new homes, townhomes and condos were sold in January. It was the lowest number of monthly new home sales in … Continue reading
(9 September 2019, AFR, p22, William McInnes, Reporter) ‘China has stepped up efforts to buttress its economy amid its trade war against the US, freeing up liquidity in the banking system in order to boost domestic investment. The People’s Bank of China cut its reserve requirement for all banks by 0.5 percentage points on Friday, … Continue reading
(9 September 2019, AFR, p13, By Alexandra Stevenson) ‘BEIJING — China’s central bank moved on Friday to give the country’s slowing economy a jolt, saying it would essentially inject $126 billion into the financial system as Beijing fights an escalating trade war with the United States and contends with a dangerous addiction to debt at … Continue reading
(9 September 2019, AFR, p6, Su-Lin Tan, Reporter) ‘Auction clearance rates in Sydney and Melbourne continued to rise in the first week of spring, and according to new research it’s not just because there is nothing to buy. Sydney’s preliminary auction clearance rate closed at 83.1 per cent, while Melbourne’s figure was 76.6 per cent, … Continue reading
(9 September 2019, AFR, p3, Patrick Durkin, BOSS Deputy Editor) ‘Corporate undertakers are predicting boom times ahead as retailers and property developers battle a slowdown in household spending. Over 8100 companies appointed outside administrators last financial year, according to the corporate regulator, the highest levels since 2016. Industry research undertaken by KordaMentha has found access … Continue reading
()7 September 2019, AFR, p29, Patrick ComminsColumnist) ‘Reporting season generated ‘unprecedented’ volatility as 35 per cent of listed firms recorded share price moves of over 5 per cent on the day of their results. Economies are less dynamic and business cycles are squashed, yet financial market valuations have grown rich and increasingly prone to wild … Continue reading
[COMMENT: A window into the retail and fashion industry.] (6 September 2019, AFR, p17, Sue Mitchell, Senior Reporter) ‘Myer chief John King has scuttled persistent rumours the department store chain will call in administrators to speed up store closures, saying it was making headway on its turnaround plan and hoped to lift profits this year … Continue reading
(6 September 2019, AFR, p15, Hans van Leeuwen, Europe correspondent) ‘London | British Prime Minister Boris Johnson has been left stranded in a Brexit impasse, after a “rebel alliance” of MPs late on Wednesday (Thursday morning AEST) passed Opposition-initiated legislation stopping an October no-deal Brexit and also stalled his demand for a snap election.’ Read … Continue reading
(6 September 2019, AFR, p14, Alexandra Stevenson) ‘Shanghai | The United States and China will hold trade talks in Washington early next month, officials from both countries said on Thursday, but new tariffs will make it difficult to find a way to end their economic clash. Liu He, a top Chinese economic official and Beijing’s top … Continue reading
(6 September 2019, AFR, p7, Matthew Cranston, Economics correspondent) ‘A mix of high resource prices and rising wages have helped Australia dig itself out of an income recession and reach a record standard of living as measured by disposable income per person. Real disposable income per capita rose 1 per cent in the June quarter … Continue reading
(5 September 2019, AFR, p47, Phil Ruthven) ‘Visy maintains its ascendancy in the Top 500, but Hancock Prospecting is poised to overtake it. The largest 500 private businesses accounted for just under 4.3 per cent of the $5.5 trillion in revenue recorded across the Australian economy in 2018-19, and grew faster than other businesses. Combined, … Continue reading
(5 September 2019, AFR, p32, Patrick Commins, Columnist) ‘The first current account surplus since the 1970s and the slowest pace of GDP growth in a decade. It’s been a week of dizzying highs and, if not exactly terrifying, then troubling lows. Growth in real GDP over the June quarter of 0.5 per cent met analysts’ … Continue reading
(5 September 2019, AFR, Special Report p2, Jonathan Porter) ‘Australian Small Business and Family Enterprise Ombudsman Kate Carnell says that the nation is in “serious trouble” if we can’t help small businesses grow in a flat economy. According to the RBA’s charts, bank lending to small business has been flat for the past five years, … Continue reading
(5 September 2019, AFR, p21, Sue Mitchell, Senior Reporter) ‘Australian retail might be in the doldrums but it’s not all doom and gloom. At variety retailer Miniso – a cross between The Reject Shop and Japanese chain Daiso – same-store sales are growing more than 20 per cent as customers fill their baskets with budget-priced … Continue reading
(5 September 2019, AFR, p21, Simon Evans, Senior Reporter) ‘New vehicle sales in Australia plunged by 10.1 per cent in August as buyers struggled to obtain finance for cars, extending an industry-wide malaise which has gripped the sector for 17 consecutive months. New figures out on Wednesday from the Federal Chamber of Automotive Industries (FCAI) … Continue reading
(5 September 2019, AFR, p19, Sue Mitchell, Senior Reporter) ‘British-based fashion retailer Karen Millen is withdrawing from Australia, joining a growing list of retailers that have collapsed or shut up shop in the last 12 months. Karen Millen, which went into administration in the UK last month, has appointed Richard Hughes, Tim Norman and Michael … Continue reading
(5 September 2019, AFR, p15, Jacob Greber, United States Correspondent) ‘Washington | Damage from the worsening US-China trade war is beginning to weigh on the world’s biggest economy, with American manufacturing joining a spreading contraction that has already hit 70 per cent of the world’s factories. Amid a dearth of signs Washington and Beijing are … Continue reading
(5 September 2019, AFR, p14, Liu Jiefei) ‘Beijing | China’s services sector expanded at the fastest pace in three months in August as the growth of new business orders placed with services providers picked up, a survey showed on Wednesday. The Caixin China General Services Business Activity Index, which provides a snapshot of operating conditions … Continue reading
(5 September 2019, AFR, p8, Matthew Cranston, Economics correspondent) ‘Expectations are rising for further interest rate cuts after weaker consumption and poor business investment led to the slowest annual pace of economic growth since 2009 at 1.4 per cent. Held up only by surprisingly strong mining investment, higher government spending and record net exports, the … Continue reading
(4 September 2019, AFR, p31, Nila Sweeney, Reporter) ‘The number of home owners falling behind their mortgages have risen to 1.5 per cent over the past 12 months to June, as falling property prices and tighter lending conditions have made it tougher for people to manage their debts, the latest S&P Global Ratings report shows.’ … Continue reading
(4 September 2019, AFR, p17, Sarah Turner, Reporter) ‘Australia’s first current account surplus since the 1970s reflects a very different economy to that of 40 years ago when domestic recession and booming agricultural exports pushed the trade balance into the black.’ <snipped…> ‘The epic $5.9 billion current account surplus reported for the June 2019 quarter … Continue reading
(4 September 2019, AFR, p6, Matthew Cranston, Economics correspondent) ‘The Reserve Bank of Australia has held the official cash rate at 1 per cent but has warned that softer economic conditions and heightened global economic uncertainty will bring further rate cuts.’ Read more at AFR.com (might need AFR login, or try: AFR.com/trial)
(4 September 2019, AFR, p6, Patrick Commins and Jonathan Shapiro) ‘The prospect of a structural improvement in the country’s “chronic” net income deficit has the potential to recast foreigners’ views of the Australian economy and its currency, experts say. Official data released Tuesday morning confirmed a June quarter current account surplus of $5.9 billion – … Continue reading
(4 September 2019, AFR, p1, Matthew Cranston, Economics correspondent) ‘Concerns that the economic growth may have contracted in the June quarter have been relieved by an export surge that has produced Australia’s first current account surplus since 1975 and held back the Reserve Bank of Australia from cutting official interest rates below 1 per cent. … Continue reading
