You are viewing:-

Archive for

19 Aug 2017 (AFR) – ASX unsettled by Washington woes, claws into the black – helped by local firms

(19 August 2017, AFR, p33, by Jessica Sier) ‘Investors attention was dragged offshore on Friday as growing unease in global financial markets lifted following further political turmoil in Washington and after terrorists struck a crowded Barcelona street. After a week driven strongly by local company earnings, with the likes of Telstra dragging the bourse down and … Continue reading

19 Aug 2017 (AFR) – Only political intervention can solve China’s debt mess – China has to act quickly

(19 August 2017, AFR, p20, by Angus Grigg) ‘It was June 2009 when the International Monetary Fund noted the “extraordinary expansion” in bank lending across China. The fund called for Beijing to be “vigilant” in looking out for a rise in bad debts, while generally assuming the run-up in lending would slow or even stop … Continue reading

18 Aug 2017 (AFR) – Donald Trump dumped by big business CEOs

(18 August 2017, AFR, p13, by John Kehoe) ‘Australian Andrew Liveris, President Donald Trump’s top business adviser on manufacturing, over the years has told associates, “In Washington you’re either at the table, or on the menu”. But dozens of high-profile CEOs are abandoning the board table of Mr Trump, who Dow Chemical’s Mr Liveris once … Continue reading

18 Aug 2017 (AFR) – Inside the mass CEO defection from Donald Trump’s advisory boards

(18 August 2017, AFR, p36, David Gelles) ‘Corporate America’s influential leaders have turned their backs on the President.’ ‘On Monday, Indra Nooyi, the chief executive of Pepsi, picked up the phone and began calling other prominent corporate chieftains who – like her – had agreed to advise President Donald Trump. A rebellion was brewing. Along with … Continue reading

18 Aug 2017 (AFR) – Janet Yellen takes a huge political risk in chiding Donald Trump for policy ‘uncertainty’

(18 August 2017, AFR, p31, by Karen Maley) ‘The powerful and usually scrupulously apolitical US Federal Reserve has come out with unusually forthright criticism of the Trump administration’s failure to chart a clear economic course, at a time when US corporate bosses are scrambling to distance themselves from the US leader. As US President Donald … Continue reading

18 Aug 2017 (AFR) – ‘Stunning admission’: Federal Reserve admits inflation modelling needs a fix

(18 August 2017, AFR, p30, by Philip Baker) ‘If it’s true that the first step towards fixing a problem is admitting that you have one, then the US Federal Reserve is on its way to finding out why inflation is so low right now. As every economist knows, the Fed’s main job is to target inflation … Continue reading

18 Aug 2017 (AFR) – Donald Trump’s apologists have nowhere to hide

(18 August 2017, AFR, p29, by Edward Luce) ‘Who poses the most realistic threat to the US republic: Kim Jong Un or Donald Trump? In theory, it is obviously Mr Kim. Yet US democracy is within Mr Trump’s striking range at all times. By providing cover to homegrown neo-Nazis, America’s commander-in-chief is giving succour to … Continue reading

18 Aug 2017 (AFR) – Prominent China debt bear warns of $6.8trn in hidden losses

(18 August 2017, AFR, p29, by Gabriel Wildau) ‘One of the most influential analysts of China’s financial system believes that bad debt is $US6.8trn above official figures and warns that the government’s ability to enforce stability has allowed underlying problems to go unchecked. Charlene Chu built her reputation as China banking analyst at credit rating … Continue reading

18 Aug 2017 (AFR) – Japan exports up for eighth month in a row

(18 August 2017, AFR, p14, by Leika Kihara) ‘Japan’s exports rose for an eighth straight month in July on robust shipments to the United States and a boost from a weak yen, suggesting the economy is carrying strong momentum through to the second half of the year. The data underscores the Bank of Japan’s view … Continue reading

18 Aug 2017 (TheAge) – Economy adds 1000 jobs a day – Unemployment falls to 5.6 per cent in July

(18 August 2017, The Age, p10, Eryk Bagshaw) ‘The average number of workers being employed every six months has had its strongest run in seven years, new figures show, as the unemployment rate drops to 5.6 per cent on the back of 10 straight months of gains in full-time employment. The economy has added more … Continue reading

17 Aug 2017 (AFR) – Fund managers say equities are too expensive as profit hopes take ‘ominous turn’

(17 August 2017, AFR, p26, by Jessica Sier) ‘Despite encouraging signs the global economy is picking up, two surveys of fund managers indicate that caution is the prevailing sentiment in the industry, with a record number of professional investors saying equities are overvalued. Of the 174 fund managers surveyed by Bank of America Merrill Lynch, … Continue reading

17 Aug 2017 (AFR) – Fear of Amazon carnage hits US retail stocks – Investors hit panic button on US retail stocks as online dominance builds up

(17 August 2017, AFR, p26, by Karen Maley) ‘Janet Yellen, the head of the powerful US central bank, will have felt a flicker of pleasure as she perused the latest US retail sales figures. US consumers – whose spending accounts for more than two-thirds of economic activity – are loosening their purse strings as a gratifying display … Continue reading

17 Aug 2017 (AFR) – When missed guidance is a buying opportunity – This is when close enough should be good enough for investors

(17 August 2017, AFR, p25,by Philip Baker) ‘Investors these days can be a hard lot to please and it’s not hard to work out why. But is it right? CSL and Seek are two companies that on Wednesday paid severely for not quite meeting analyst forecasts. Despite good profit results from both companies, investors took an … Continue reading

17 Aug 2017 (AFR) – International Monetary Fund warns on China’s ballooning corporate debt

(17 August 2017, AFR, p11, by Angus Grigg) ‘China’s consumers spend too little and its corporate sector spends too much. That’s the blunt message from the latest country report from the International Monetary Fund, which highlights a series of worrying, if not new, imbalances across the Chinese economy. In six charts the IMF lays out … Continue reading

17 Aug 2017 (TheAge,SMH) – Australian wages stall at record low of 1.9 percent

(17 August 2017, The Age, p11, Eryk Bagshaw) ‘The wages of working Australians are going nowhere, new figures show, stalling at a record low while the earnings of more than 10 million private sector employees fall below the cost of living. The figures, published by the Australian Bureau of Statistics on Wednesday, show wages grew … Continue reading

17 Aug 2017 (TheAge) – Dexus says office markets entering a “golden period”

(17 August 2017, The Age, BusinessDay, p23, Carolyn Cummins) ‘Dexus Property has made the call that the Sydney and Melbourne office markets are entering a golden period of high demand, low vacancy and few new developments, for at least another three years. This will lead to net rental growth, where incentives in contracts will be … Continue reading

16 Aug 2017 (AFR) – How America’s corporate giants are hurting the economy

(16 August 2017, AFR, p47, by John Kehoe) ‘Big business around the world may have become too powerful, to the detriment of the economy. This emerging school of economic thought is gaining traction among reputable economists and investors in the United States. The potential problem deserves serious analysis, devoid of the typical simplistic ideological fights … Continue reading

16 Aug 2017 (TheAge) – RBA warns construction activity could start to decline

(16 August 2017, The Age, BusinessDay, p21, Eryk Bagshaw) ‘The Reserve Bank has warned construction activity could begin to decline as the number of residential building approvals falls from its peak in 2016.  The message, released in the minutes of the central bank’s August meeting on Tuesday, comes a week after BIS Oxford Economics forecast a 31 … Continue reading

15 Aug 2017 (AFR) – Record ETF inflows fuel price bubble fears

(15 August 2017, AFR, p29, by Chris Flood, ‘Record-breaking inflows into exchange traded funds this year are fuelling fears that the tide of money surging into passive investment is helping to inflate a bubble in the US stock market. Demand for ETFs has accelerated sharply this year, as a growing number of investors move … Continue reading

14 Aug 2017 (AFR) – The next crash risk is hiding in plain sight

(14 August 207, AFR, p19, by Gillian Tett) ‘A decade ago, I spent a sleepless night worrying about a Spanish trash bin. The reason? On Thursday August 9 2007, financial markets suddenly seized up. Since I was running the Financial Times markets team, I spent two days frantically trying to identify the reason for the … Continue reading

14 Aug 2017 (AFR) – Property auctions: First-home buyers lift weekly clearance rates

(14 August 2017, AFR, p5,by Nick Lenaghan) ‘First home buyers helped to hold auction clearance rates firm in Sydney and Melbourne over the week even as the number of listings swelled. The national clearance rate was at 70.5 per cent, up on last week’s 68.2 per cent, despite the number of homes taken to auction … Continue reading

14 Aug 2017 (AFR) – Chinese retreat from Australian property market

(14 August 2017, AFR, p1, by: Angus Grigg, Lisa Murray) ‘Chinese property buyers are turning away from Australian housing as efforts by regulators in both countries to slow investment begin to bite. Chinese buyers, who make up about 80 per cent of all foreign property purchases in Australia, have grown wary after being hit by Beijing’s tightened capital controls, local banks restricting … Continue reading

12 Aug 2017 (AFR) – The Aussie sharemarket has an earnings problem

(12 August 2017, AFR, p31, by Patrick Commins) ‘Five months ago I asked whether valuations “matter any more”. Prices across assets have been sky-high for a long time, but keep heading higher. The answer was in that in one important way they do, and in another important way they don’t. Starting with the latter, they … Continue reading

12 Aug 2017 (AFR) – Markets take fright as Donald Trump hardens his stance on North Korea

(12 August 2017, AFR, p28, by Karen Maley) ‘The market’s tenuous confidence has been shattered. Wall Street witnessed its biggest sell-off in nearly three months as investors dumped shares amid escalating tensions between Washington and Pyongyang, and instead sought refuge in traditional safe havens such as US bonds and gold. Investors took fright after US President Donald Trump refused … Continue reading

12 Aug 2017 (AFR) – Bulls in hiding as earnings flutter in – Bullish business conditions unmatched by earnings outlook

(12 August 2017, AFR, p25, by Vesna Poljak) ‘Jubilant business conditions are at odds with reasonable but uninspiring earnings forecasts, strategists say, as another week of results fails to align upbeat business sentiment and market reality.’ ‘On Friday, Baby Bunting suffered a 18 per cent share price fall, to $1.60, upon weaker than expected trading. Soft … Continue reading

12 Aug 2017 (AFR) – ASX weekly wrap: Korean tensions spark $20b ASX selloff

(12 August 2017, AFR, p35, by Jessica Sier) ‘The escalating war of words between the United States and North Korea weighed heavily on the ASX on Friday with the benchmark index sliding below 5700 points in a broad-based $20 billion selloff.  Investors took their cue from Wall Street, which posted its biggest loss in three months … Continue reading

11 Aug 2017 (AFR) – How the world’s financial markets were rewired after the global financial crisis

[COMMENT: Now this is fantastic reading. A good recap on how the GFC unfolded, which provides some clues as to how the next one might unfold. And it contradicts many supposed experts who have claimed that no one could see the GFC coming. Well, this article describes the clues that were readily visible on 9th … Continue reading

11 Aug 2017 (AFR) – China’s markets show reforms starting to work

(11 August 2017, AFR, p31, by David Millhouse) ‘These are heady times in the markets for Chinese commodity futures and listed industrial shares. Large industry leaders such as Aluminum Corp of China Ltd, or Chalco as it’s known, have risen more than 50 percent recent months. Angang Steel is up some 30 percent in the … Continue reading

11 Aug 2017 (AFR) – Why Xi Jinping is taming China’s dealmakers

(11 August 2017, AFR, p29, by Lucy Hornby, Financial Times) ‘For China’s ruling Communist party, its foreign exchange reserves are a symbol of national strength and are a crucial buffer against economic shocks. So the alarming announcement that forex reserves had fallen below $US3tn in January marked a shift in political faultlines that is only being … Continue reading

11 Aug 2017 (AFR) – China’s Wanda restructures Australian projects – takes steps towards Australian exit

(11 August 2017, AFR, p14, by: Angus Grigg, Lisa Murray, Matthew Cranston, Su-Lin Tan ) ‘China’s Wanda Group, under pressure from Beijing to crimp its offshore expansion and reduce debt, has sold a majority stake in its two flagship Australian real estate projects. The Hong Kong-listed Wanda Hotel Development said on Thursday it would sell … Continue reading