REITs (Real Estate Investment Trusts) – massive write downs as was expected (due to GFC, property is to be revalued for each periodic reporting period). GPT writes off $2 billion. Becton another $85million on top of earlier $150 million.
Domestic housing market has stabilised. TOp end is increasing. Sydney reserves for properties > $1 million are being beaten. Monthly price index (RP Data Rismark) rising since January.
John Hewson (former Liberal Party leader):- “…the coming global bond market shake-out could be Stage 2 of the Global Financial Crisis, and that any recovery may prove unsustainable; there could even be a double-dip recession…” “… US budget deficit is already some 13% to 14% of GDP”…The bond market is being undermined. (AFR 31/7/09)
Manufacturers have lifted production for the 4th month. (AFR 31/7/09)
The US “Beige Book” (a compilation of anecdotal information from business across America) suggest the worst might be over (AFR 31/7/09).
…might have bottomed; consumer prices down (first annual decline in 22 years); but unemployment is up.