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30 Sept 2015 (AFR) – Prestige properties fail to sell as auction boom subsides

(30 September 2015, AFR, p40, by Su-Lin Tan ) ‘Even a coveted Point Piper address could not get a sale under the hammer on a Monday night auction where vendor bids dominated, in another sign that Sydney’s great auction boom has ended.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial) Advertisements

30 Sept 2015 (AFR) – Glencore’s true value after stock hammering has analysts guessing

(30 September 2015, AFR, p29, by Inyoung Hwang and Camila Russo) ‘Glencore, the commodity trader that lost about a third of its value Monday, is worth either $US98 billion ($140 billion) or $US26 billion, depending on which analyst you ask. At Sanford C. Bernstein, price targets published by Paul Gait suggest…’ Read more at AFR.com (might … Continue reading

30 Sept 2015 (AFR) – Glencore woes prompt investors to dump commodities shares

(30 September 2015, AFR, p29, by Karen Maley ) ‘Shares in the giant commodity trading house Glencore fell to a record low overnight in a stark reminder of the souring sentiment towards the resources sector. The UK-listed company shed almost 30 per cent of its market value, with its shares closing at 69p ($1.51) after … Continue reading

30 Sept 2015 (AFR) – Why it’s too late to sell mining stocks but not too early to buy

[COMMENT: NOTE that the posting of this article is NOT a recommendation or suggestion to take any action in the market. It is being recorded so as we can revisit it later and determine if there was any truth in this ‘crystal ball gazing’.] (30 September 2015, AFR, p25, by Steve Johnson) ‘China’s economy had … Continue reading

30 Sept 2015 (AFR) – India’s Rajan unexpectedly cuts rate more than economists forecast

(30 September 2015, AFR, p12, by Sandrine Rastello) ‘India’s central bank lowered interest rates more than expected to bolster the economy as China’s slowdown threatens global growth and a commodity rout contains inflation. Governor Raghuram Rajan cut the benchmark repurchase rate to 6.75 per cent from 7.25 per cent, the Reserve Bank of India said … Continue reading

30 Sept 2015 (AFR) – Apartment glut sees increase of sales at less than purchase price – Melbourne apartments sold at a loss

(30 September 2015, AFR, p8, by Michael Bleby) ‘The supply of new apartments and a retreating, resource-based economy is starting to weigh on the market, with more units selling at a loss in the June quarter than the previous three months. The proportion of apartments selling for less than the purchase price rose in Melbourne, Brisbane, Canberra, … Continue reading

30 Sept 2015 (AFR) – IMF forecasts may hold sway over RBA talks – RBA under pressure to cut rates

(30 September 2015, AFR, p8, by  Mark Ludlow ,  Jonathan Barrett) ‘Pressure is mounting on the Reserve Bank of Australia to cut interest rates in the wake of a gloomy report by the International Monetary Fund that forecasts falling growth for commodity exporters, including Australia.’ Read more at AFR.com (might need AFR login access, or try: … Continue reading

30 Sept 2015 (TheAge,MONEY) – Sharemarket investing: Times getting tough? Time to pull plug

[COMMENT: Now this is interesting, coming from a stock broker, but we know that Marcus Padley has tweaked his views in recent times. As many shorter-term investors know, protecting capital is very important, and exit strategies such as the Stop Loss are indispensable methods.] (30 September 2015, The Age, MONEY supplement, p4, Marcus Padley,View more … Continue reading

30 Sept 2015 (TheAge) – Global recession fears ‘too gloomy’, says Lombard Street Research

(30 September 2015, The Age, BusinessDay, p38, Rose Powell and Vesna Poljak) ‘Fears of an impending global recession are overblown, say researchers at an economics research outfit, because the United States and European economies are looking increasingly resilient, despite China’s slowing. Earlier this month, Citigroup’s top economist Willem Buiter said…’ Read more at TheAge.com.au

30 Sept 2015 (TheAge) – Investors look north and south as Sydney property hits peaks

(30 September 2015, The Age, BusinessDay, p29, Nicole Lindsay) Sydney ‘superlot’ hits $66m jackpot ‘Restricted postcodes’: NAB names suburbs at risk ‘Investors, increasingly put off by Sydney’s sky-rocketing prices, are turning to Brisbane and Melbourne apartments to stock their portfolios. Agents and developers operating in the northern and southern cities report booming enquiry and sales … Continue reading

30 Sept 2015 (TheAge) – Markets maul miners after Glencore fall – Miners smashed in market rout

(30 September 2015, The Age, BusinessDay, p21, Vanessa Desloires, Reporter, View more articles from Vanessa Desloires) Glencore’s true value has analysts guessing Glencore shares routed amid debt concerns Markets Live: $35b wiped off ASX ‘Australian resources stocks were rocked in the wake of British-listed miner Glencore’s catastrophic share price plunge on Tuesday, with local miners leading a brutal $50 billion sell-off. … Continue reading

30 Sept 2015 (TheAge) – Sharemarket: ‘Bloodbath’ puts heat on PM – Malcolm Turnbull left weighing reform task as market dives on resources woes

[COMMENT: Headlines like this tell us something about what is happening day to day; but as I wrote only a couple of days ago, we need to step back and notice whether any big decline like this one is simply within the recent trading range, or whether it is heading strongly lower, and below the … Continue reading

29 Sept 2015 (AFR) – For global corporate bonds, it’s another crisis

(29 September 2015, AFR, p34, by Philip Baker ) ‘It might not be panic stations yet, but signs are emerging the global corporate bond market hasn’t been this nervous since two of the largest financial disasters hit investors hard: …’ <snipped> ‘If spreads in investment-grade corporate bonds continue to widen as 2015 comes to a close, … Continue reading

29 Sept 2015 (AFR) – Ireland: Tentative signs that Celtic Tiger is starting to purr again

(29 September 2015, AFR, p31, by Vincent Boland, Financial Times) ‘Ireland’s business and political elite will gather this week on a greenfield site near the town of Naas, not far from Dublin, to mark the opening of one of the biggest investments made by an Irish company in several years.’ <snipped…> ‘… in 2012, when … Continue reading

29 Sept 2015 (AFR) – No need for tea leaves as sales tell true story – Sales growth – the core to knowing where equity markets are headed

(29 September 2015, AFR, p31, by Lex Column, Financial Times) ‘…Those who invest in stocks do well, however, to spare a little time for perhaps the most fundamental indicator of all: are companies selling more stuff to their customers?  In the US, sales are not telling a good story. In the first quarter of this … Continue reading

29 Sept 2015 (AFR) – Rise in Sydney, Melbourne travel a sign of rising confidence

(29 September 2015, AFR, p30, by Jamie Freed) ‘The number of passengers flying between Sydney and Melbourne rose 7.5 per cent in July from the previous year, at a time when airfares are also rising, in a potential sign of rising business and consumer confidence, CommSec chief economist Craig James says. “If more business people … Continue reading

29 Sept 2015 (AFR) – UK keeps rate at record low as China slows – BOE to hold fire until mid-2016 amid China slowdown, think tank says

(29 September 2015, AFR, p13, by Andrew Atkinson) ‘The Bank of England will keep interest rates at a record low until the middle of 2016 as the slowdown in China and emerging markets casts a shadow over the UK economy, a think tank said. In a report published on Monday, the Centre for Economics and Business … Continue reading

29 Sept 2015 (AFR) – Shinzo Abe puts inflation goal further out of reach with mobile rate cuts

(29 September 2015, AFR, p13, by Kevin Buckland and Shigeki Nozawa) ‘Inflation expectations as reflected by Japan’s bond market are the lowest in seven months after consumer prices fell in August. Prime Minister Shinzo Abe’s plan to cut mobile phone rates may further weigh on the price outlook.’ Read more at AFR.com (might need AFR … Continue reading

29 Sept 2015 (AFR) – A softer economic fall instead of a hard landing – Not your ordinary commodity exporter

(29 September 2015, AFR, p4, by Alan Mitchell ) ‘The hard landing under way in the majority of commodity exporters helps explain the International Monetary Funds’s impending downgrading of the global economic outlook.  But it is important to remember that Australia is not a typical commodity-exporting economy. Unlike most of the commodity exporters, it is not … Continue reading

29 Sept 2015 (AFR) – IMF: Commodities slump could hold growth rates lower for longer

(29 September 2015, AFR, p4, by Mark Mulligan ) ‘Australians might have to get used to slower growth rates as commodity price weakness persists and investment outside mining struggles to pick up the slack, says the International Monetary Fund. The IMF, in its latest World Economic Outlook series, says the sharp decline in many metal … Continue reading

29 Sept 2015 (AFR) – NAB names inner city suburbs at risk of mortgage default

(29 September 2015, AFR, p1, by Clancy Yeates ) ‘​A surprising range of Sydney and Melbourne suburbs, including desirable inner-city postcodes, have been added to a list of areas including Pilbara and Queensland mining towns that National Australia Bank believes may become vulnerable to risks of mortgage default. In a note received by mortgage brokers last week, NAB listed more than 80 “restricted postcodes” across the … Continue reading

29 Sept 2015 (TheAge) – Sydney, Melbourne property markets ‘moderating’, not in downturn, says UBS

(29 September 2015, The Age, BusinessDay, p23, Mark Mulligan, Markets and economy reporter, View more articles from Mark Mulligan) ‘Softening auction clearance rates and a regulatory crackdown on lending to investors point to a cooling in the hot residential property markets of Sydney and Melbourne. However, a range of experts has been quick to refute the idea that either … Continue reading

28 Sept 2015 (AFR) – As bricklaying costs soar, housing looks for solutions to labour shortage

(28 September 2015, AFR, p35, by Robert Harley ) ‘Last Wednesday evening, 80 representatives of the housing and building industries met in the Rooty Hill RSL in Sydney’s west. The subject: the shortage of bricklayers. Bricklaying prices have soared in the city as the housing boom has taken hold. In 2012, the cost was about $900 … Continue reading

28 Sept 2015 (AFR) – Chinese investors heat up Australian farm buying spree

(28 September 2015, AFR, p34, by Matthew Cranston, Angus Grigg,  Lisa Murray ) ‘Chinese investors have spent a quick-fire $120 million in the last two months buying rural properties across Australia and the signs are that the buying spree is only the beginning with more than $1 billion worth of deals in play. Following a … Continue reading

28 Sept 2015 (AFR) – Turmoil in emerging markets tests resilience of US and Europe

(28 September 2015, AFR, p20, by Karen Maley ) ‘The most important question confronting investors is whether the United States and Europe will remain insulated from the economic turmoil that is now sweeping through the emerging markets. Janet Yellen, who chairs the US Federal Reserve, is confident that the prospects for the world’s largest economy “appear … Continue reading

28 Sept 2015 (AFR) – Caterpillar warns on global demand as slowdown digs in

(28 September 2015, AFR, p19, by Lindsay Whipp) ‘Caterpillar has sent a sharp warning on the outlook for global industrial demand as the bellwether for economies from China to Brazil said that it might slash more than 10,000 jobs and expected 2016 to mark an unprecedented fourth year of falling sales.’ Read more at AFR.com … Continue reading

28 Sept 2015 (AFR) – Geelong wheel maker Carbon Revolution takes on the world – plans $100m IPO

(28 September 2015, AFR, p7, by Ben Potter ) ‘Carbon Revolution, a pioneering maker of carbon fibre auto wheels, is planning a $100 million initial public offer in the next two years to fund an ambitious assault on the $40 billion global wheels market. The company has a fledgling auto wheels business and has just … Continue reading

28 Sept 2015 (AFR) – X-factor marks Sydney auctions apart – Two Sydney auctions tell the same story

(28 September 2015, AFR, p3, by Su-Lin Tan ) ‘The auction of two Sydney apartments in prime locations over the weekend produced two very different results, highlighting a more cautious market and more discerning buyers amid a swathe of new listings.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

28 Sept 2015 (AFR) – Market swings further towards buyers – ‘Sydney’s great auction boom has clearly ended’

(28 September 2015, AFR, p3, by Larry Schlesinger, Su-Lin Tan) ‘Auction clearance rates rose in Sydney and held firm in Melbourne after one of the biggest auction weekends of the year, but did nothing to dampen expectations that boom conditions have ended and that price growth will continue to moderate over the coming months. In … Continue reading

28 Sept 2015 (AFR) – Software giant Atlassian files US IPO papers – first step in $3b IPO

(28 September 2015, AFR, p1, by Tim Binsted ) ‘Australian technology heavyweight Atlassian has reportedly filed for an initial public offering in the United States in a crucial step toward a $3 billion-plus listing that could ignite activity in the local tech sector.  The deal, if it goes ahead, would be the biggest ever IPO of an Australian technology business, overshadowing … Continue reading