(19 October 2019, AFR, p33, Sarah Turner, Reporter) ‘Profit expectations and dealmaking helped lift the Australian market in a week where Latitude’s IPO collapsed and high-profile technology firms Afterpay and WiseTech came under significant selling pressure. “The big news was the Latitude float,” said Hugh Dive at Atlas Funds Management. Latitude abandoned its $3.2 billion … Continue reading
(19 October 2019, AFR, p15, Hans van Leeuwen, Europe correspondent) ‘London | In a hasty cabinet meeting on Wednesday (Thursday AEDT), British Prime Minister Boris Johnson told his ministers that Britain was like the Tim Robbins character in the ’90s movie The Shawshank Redemption. In the film’s memorable escape sequence, Robbins engineers an unlikely route out … Continue reading
(19 October 2019, AFR, p13, Michael Smith, China Correspondent) ‘Shenzhen | China’s economy grew at a weaker-than-expected 6 per cent in the third quarter as Donald Trump’s trade tariffs and a contracting manufacturing sector saw gross domestic product scrape in at the bottom end of the government’s target and hit a fresh 30-year low. While … Continue reading
(19 October 2019, AFR, p12, Hans van Leeuwen, Europe correspondent) ‘London | British Prime Minister Boris Johnson will on Saturday attempt to cajole his Parliament into voting for his newly minted Brexit deal, facing the prospect that only a few votes in the 650-seat chamber separate stunning victory from inglorious defeat.’ Read more at AFR.com … Continue reading
(19 October 2019, AFR, p8, Tom McIlroy, Political reporter) ‘Prime Minister Scott Morrison says the Coalition will continue to send cash to drought-affected communities in eastern Australia, promising to do more as ongoing dry hurts the federal budget. The government expects the drought will reduce GDP by at least 0.25 per cent through reductions in … Continue reading
(18 October 2019, AFR, p5, Matthew Cranston and Jonathan Shapiro) ‘A lower unemployment rate of 5.2 per cent in September has slashed the chances of a back-to back interest rate cut from the Reserve Bank in November and pushed the Australian dollar back close to US68¢. The economy added 14,700 new jobs last month after … Continue reading
(18 October 2019, AFR, p4, Matthew Cranston) ‘Reserve Bank deputy governor Guy Debelle said a shortfall in housing supply was “quite likely” in the foreseeable future and that would trigger a “larger price response” in property values. Dr Debelle said demand for housing would continue to grow and 2020 could be the year construction bottoms … Continue reading
(17 October 2019, AFR, p34, Nick Lenaghan, Property Editor) ‘Steady improvement in the Perth, Brisbane and Adelaide office markets has sent the national vacancy rate a full percentage point lower to 8.1 per cent in the past year. Vacancy rates in the three resource sector-focused states tightened further over the third quarter, according to figures … Continue reading
(17 October 2019, AFR, p28, Michael Bleby, Senior Reporter) ‘Retail landlords face the prospect of more tenants going to the wall as online sales grow faster than many retailers can reconfigure their sites to respond, rendering stores unprofitable and making them likely to close, consultancy EY warns. Online will account for 19 per cent of … Continue reading
(17 October 2019, AFR, p24, Jonathan Shapiro, Senior Reporter) ‘The share market may be at or around all-time highs. Yet brokers and fund managers aren’t exactly revelling in the excess and enthusiasm one might expect after a decade-long bull market. Why is that so? Why is the share market no longer an indicator of welfare … Continue reading
(17 October 2019, AFR, p23, Martin Wolf, Columnist) ‘These are fragile times. Some of that reflects the wave of populist nationalism that is now sweeping across high-income countries. But some of it reflects sterile orthodoxy, writes the FT’s Martin Wolf.’ <snipped…> ‘Joint research by the Brookings Institution and Financial Times is bleaker still, describing our … Continue reading
(!6 October 2019, AFR, p1, John Kehoe, Senior Writer) ‘Prime Minister Scott Morrison declared his budget surplus plan will not be “spooked” by international events, as the International Monetary Fund slashed Australia’s economic growth forecast to just 1.7 per cent and advised world governments to unleash a spending stimulus. The IMF’s World Economic Outlook warned … Continue reading
(16 October 2019, AFR, p32, Nila Sweeney, Reporter) ‘Rental markets have weakened during the past three months as demand struggles to soak up the excess supply created by high investor activity during the recent housing boom, the latest CoreLogic Quarterly Rental Review shows. Nationally, rental rates dropped 0.3 per cent over the September quarter, reversing … Continue reading
(16 October 2019, AFR, p29, Larry Schlesinger, Reporter) ‘The slump in residential construction activity and consumer confidence about buying off the plan has weakened pay conditions in the property industry, with architects the first to feel the pain, according to the latest Avdiev Property Remuneration Report. “Too many architects and graduates and too few projects,” … Continue reading
(16 October 2019, AFR, p1, Sue Mitchell and Natasha Gillezeau) ‘Investors in stocks exposed to discretionary spending are bracing for a series of profit warnings amid growing evidence record low interest rates and tax cuts have failed to convince shoppers to pry open their wallets. The consumer malaise struck furniture retailer Nick Scali and radio … Continue reading
(15 October 2019, AFR, p42, Nupur Anan and Swati Bhat) ‘India might have thought the worst of a bad loans crisis was past, but a severe cash crunch in the real estate industry could augur fresh strife for its banks. A slump in the residential property market is leaving many builders struggling to repay loans … Continue reading
(15 October 2019, AFR, p38, Nila Sweeney, Reporter) ‘Sixty-eight Australian suburbs have surged past the million-dollar mark in the past three months after buyer confidence returned following the Coalition’s federal election victory and the RBA began cutting interest rates in June. The rise in million-dollar localities represents a 0.80 per cent increase in the number … Continue reading
(15 October 2019, AFR, p33, Larry Schlesinger, Reporter) ‘Home Consortium boss David Di Pilla is keen to distinguish the freshly floated retail landlord from its most obvious rival, listed large-format player Aventus, after its shares surged on debut to defy the retail gloom in some quarters. Trading under the ticker HMC, shares ended the day … Continue reading
(15 October 2019, AFR, p29, William McInnes) ‘Aviva Investors are placing the likelihood of a global recession in the next 18 months at one in three, saying the uncertainty coming from the trade war is weighing major economies. UK-based Aviva manages £337 billion ($625 billion) globally and say global growth has now reached its weakest … Continue reading
(15 October 2019, AFR, p15, Sue Mitchell, Senior Reporter) ‘The clothing industry is facing a long-term structural decline as consumers with ‘too much stuff’ cut back on the number of new outfits they buy, even as prices fall. Consumers have been buying clothes in ever-increasing quantities over the past 20 years as fast-fashion retailers such … Continue reading
(15 October 2019, AFR, p12, John Geddie and Joe Brock) ‘Singapore | Singapore’s central bank eased monetary policy for the first time in three years on Monday, as widely expected, with the city-state’s bellwether economy narrowly dodging recession. Singapore – which is due to hold an election within months – has like other trade-reliant Asian … Continue reading
(14 October 2019, AFR, p33, Su-Lin Tan, Reporter) ‘Rental vacancies in Sydney dropped to 2.9 per cent, the lowest in a year, led by areas such as Chatswood, Auburn and Arndell Park, the latest REINSW Residential Vacancy Rate Report shows. September’s decline from 3.6 per cent in August brought the city-wide level below 3 per … Continue reading
(14 October 2019, AFR, p5, Michael Bleby, Senior Reporter) ‘Buyers taking out home loans at the fastest pace in three years pushed auction clearance rates back up to pre-football final levels, with four out of every five homes auctioned sold in Sydney on the weekend. The preliminary clearance rate in the NSW capital rose to … Continue reading
(14 October 2019, AFR, p5, Matthew Cranston, Economics correspondent) ‘Fears of a business investment strike have been exaggerated – spending is at more than twice the level during the 1990s recession, new analysis from Deloitte Access Economic shows. Deloitte’s latest business outlook highlights that investment as a percentage of GDP in real terms “points to … Continue reading
(14 October 2019, The Age, p4, By Shane Wright) ‘The Australian economy is gently improving despite domestic problems, but falling interest rates are creating future housing affordability hurdles in Sydney and Melbourne that will hit young people, one of the nation’s chief economic forecasters has warned. Deloitte Access Economics, in its quarterly update on the … Continue reading
(12 October 2019 (AEST), Wall Street Journal online, By Gunjan Banerji) ‘U.S. stocks soared Friday on progress in the trade talks between the U.S. and China, helping the S&P 500 break a three-week losing streak. Major stock indexes jumped as President Trump offered an upbeat assessment of trade talks and the U.S. said it had … Continue reading
(12 October 2019, AFR, p32, William McInnes) ‘Market-based measures of the risk of a US recession faded this week, but global indicators are painting a bleaker picture of the rest of the world, supporting the inference that the Germany economy is already in recession. Morgan Stanley’s recession indicator, which calculates the probability the US economy … Continue reading
(12 October 2019, AFR, p20, Helene Cooper) ‘Washington | The last time the United States abandoned allies in the Middle East, military officials say, it helped lead to the Iraq War. Now, almost 30 years later, President Donald Trump has pulled US special forces and support troops away from Kurdish allies in northern Syria, easing … Continue reading
(12 October 2019, AFR, p12, Chris Dixon and Colby Itkowitz) ‘Charleston | Senator Lindsey Graham has called President Donald Trump’s decision to pull US troops out of northern Syria “the biggest blunder of his presidency” as the three top Republicans in the House took steps towards sanctioning Turkey over its military offensive against US-allied Kurdish … Continue reading
(12 October 2019, AFR, p5, Nila Sweeney, Reporter) ‘First-time property investors are driving a surge in home loan approvals, lured into the market by low interest rates and loosening credit rules, particularly from smaller lenders, brokers said. Investor home loans grew at their fastest pace in almost three years in August according to data released … Continue reading
(11 October 2019, AFR, p16, Paul Carrel, Reinhard Becker, Reuters) ‘BERLIN (Reuters) – German exports fell by more than expected in August, data showed on Thursday, reinforcing expectations that a manufacturing slump is pushing Europe’s largest economy into recession. Reliant on exports, German factories are suffering from a slowing world economy and uncertainty linked to … Continue reading
(11 October 2019, AFR, p3, Michael Bleby and Matthew Cranston) ‘Investor home loans grew at their fastest pace in almost three years and first-home buyers roared into action in August, adding weight to the Reserve Bank’s view that interest rate cuts are creating a “gentle turning point” in the economy. Rising prices and easier borrowing … Continue reading
(10 October 2019, AFR, p31, Ingrid Fuary-Wagner, Reporter) ‘Rents in Sydney recorded the biggest annual drop in 15 years as the large volume of stock on the market and still-weak investor appetite pushed house rents down 4.5 per cent and unit rents down 4.6 per cent. Over the September quarter, house rents fell in Sydney … Continue reading
(10 October 2019, AFR, p30, Robert Harley, Contributor) ‘But for all those who depend on housing – the builders, the financiers, the real estate agents, and the state treasurers – the longer-term outlook remains subdued. The metrics of housing – sales turnover, mortgage approvals, and even the latest construction numbers – are beginning to show … Continue reading
(10 October 2019, AFR, p29, Duncan Hughes, Reporter) ‘Property markets in Sydney, Melbourne and Brisbane rebounded from their depths and are starting to recover as buyer confidence improves and prices rise, according to analysis by national valuer Herron Todd White (HTW). But markets in other major mainland centres, including Darwin and Perth, continue to linger … Continue reading
(10 October 2019, AFR, p26, Michael Bleby, Senior Reporter) ‘The decline in Australia’s housing construction has further to run, economists say, despite a stronger than expected pick-up in the apartment sector triggering a slight overall gain in housing starts. New building starts rose 1.1 per cent to 46,315 in the three months ended June 30, … Continue reading
(10 October 2019, AFR, p25, Nick Lenaghan, Property Editor) ‘The rate of rental growth is set to ease in the strongly performing office markets of Sydney and Melbourne but the values for prime property will hold up nevertheless, says Charter Hall’s David Harrison. Mr Harrison’s forecast, from 35 floors up on the busy fund manager’s … Continue reading
(10 October 2019, AFR, p6, Matthew Cranston, Economics correspondent) ‘Consumer confidence has fallen to its lowest level in more than four years as people start to worry about why the Reserve Bank has cut interest rates three times this year. The Westpac Melbourne Institute Index of Consumer Sentiment fell 5.5 per cent to 92.8 in October … Continue reading
(9 October 2019, The Age, Business, p22, Stephen Bartholomeusz) ‘The prospect of the United States and China making substantial progress in the latest round of trade talks scheduled to start tomorrow appears to have been severely diminished by the provocative timing of the latest US action against Chinese technology companies. While the black-listing of eight … Continue reading
(9 October 2019, The Age, p5, By Shane Wright) ‘The Morrison government is facing growing pressure to bring forward infrastructure spending to boost the economy with consumer confidence falling to its lowest level in four years despite tax and interest rate cuts. Ahead of a meeting on Friday of the nation’s treasurers, at which states … Continue reading
(9 October 2019, AFR, p25, William McInnes, Reporter) ‘The terrible performance of some of the most hotly anticipated initial public offerings of the year has some investors questioning when the breakdown between public and private market valuations blew out so widely. Ride-sharing services Uber and Lyft both came to Wall Street with lofty valuations but … Continue reading
(9 October 2019, AFR, p6, Matthew Cranston, Economics correspondent) ‘The gentle turning point in the economy observed by the Reserve Bank of Australia last week is starting to show up in improved business conditions due to an uptick in trading, profitability, forward orders and employment intentions. The latest NAB Business survey shows that the weakening … Continue reading
(8 October 2019, The Age, p24, Elizabeth Knight) ‘Another month, another set of underwhelming retail sales numbers. This should be setting off alarm bells for the Reserve Bank which was hoping the estimated $16.6 billion stimulus provided by two sets of tax cuts and now three interest rate cuts would provide a big boost to … Continue reading
(8 October 2019, The Age, p10, By Shane Wright) ‘Companies are calling on the Morrison government to accelerate infrastructure spending across the country as signs grow the construction sector’s woes are intensifying with firms holding back investment plans at recession-like levels. The Australian Industry Group-Housing Industry Association’s construction index, released on Monday, showed a fall … Continue reading
(5 October 2019, AFR online, Lucia Mutikani) ‘Washington | The US unemployment rate dropped to near a 50-year low of 3.5 per cent in September, with job growth increasing moderately, suggesting the slowing economy could avoid a recession for now despite trade tensions that are hammering manufacturing. The Labor Department’s closely watched monthly employment report … Continue reading
(5 October 2019, AFR, p10, Duncan Hughes, Reporter) ‘High stamp duty and moving costs are contributing to households staying in their homes more than 30 per cent longer then a decade ago, contributing to record low property volumes. A typical household could spend up to 10 per cent of their sale price in state government … Continue reading
(5 October 2019, AFR, p10, Nila Sweeney, Reporter) ‘Improving cashflow and even the prospect of stronger capital growth brought by lower interest rates are unlikely to entice hordes of property investors back into the market and trigger another investment boom, experts say. While investor activity had picked up since the federal election and after APRA … Continue reading
(5 October 2019, AFR, p6, Karen Maley, Columnist) ‘Global equity, bond and commercial property markets could suffer savage sell-offs if investors, who have until now been remarkably complacent about risk, suddenly wake up to the deteriorating global outlook. In its October Financial Stability Review, the Reserve Bank highlights the darkening global outlook, as economic activity has … Continue reading
(4 October 2019, AFR, p21, Simon Evans, Senior Reporter) ‘New vehicle sales in Australia slumped again in September in a soft economy, with a 6.9-per-cent fall making it 18 consecutive months that the automotive market has been in reverse. The Federal Chamber of Automotive Industries said tougher lending restrictions by financiers and a soft economy … Continue reading
(4 October 2019, AFR, p14, Tim Hepher, Philip Blenkinsop and David Lawder) ‘London/Brussels/Washington | The United States on Thursday (AEST) said it would slap 10 per cent tariffs on European-made Airbus planes and 25 per cent duties on French wine, Scotch and Irish whiskies, and cheese from across the continent as punishment for illegal EU … Continue reading
(4 October 2019, AFR, p10, Michael Mehr) ‘Retail sector activity picked up slightly in September, a survey of the Australian services industry suggests, recovering from nine months of continuous contraction. “Retail trade was broadly stable after declining for the best part of a year,” Ai Group chief executive Innes Willox said after the release of … Continue reading
