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30 Sept 2019 (AFR) – Price rises set the housing market up for another boom

(30 September 2019, AFR, p22, Sarah Turner, Reporter) ‘All the ingredients for another house price boom are in place, economists have warned, after prices rose again in August and stirred the fears among market watchers already uncomfortable with high household leverage. Economists participating in The Australian Financial Review’s September quarter survey were struck by the … Continue reading

30 Sept 2019 (AFR) – Home buyers return for busy time as prices rise – Sydney records busiest weekend for the year

(30 September 2019, AFR, p6, Duncan Hughes) ‘A town house in Sydney’s popular north shore sold at public auction for $50,000 above reserve while Melbourne’s top sale topped the reserve price by more than $200,000 at a private auction. Real estate agents claimed strong demand continued to outpace supply in the nation’s property capitals because … Continue reading

30 Sept 2019 (AFR) – interest rates: RBA to slash cash rate to 0.5 per cent; fiscal calls mount

(30 September 2019, AFR, p1, Sarah Turner, Reporter) ‘The Reserve Bank of Australia will slash the cash rate twice more by June 2020, with the first cut coming as soon as tomorrow, as market economists warn that interest rates are losing their power to rescue growth. The economists are pushing for the federal government to … Continue reading

28 Sept 2019 (AFR) – ASX: ‘Directionless’ market falls for first time in six weeks

(28 September 2019, AFR online, Lucas Baird, Reporter) ‘Easing global tensions had little effect on Australian shares this week as a “directionless” market finished the week down for the first time in more than a month. Falling 14.7 points, or 0.2 per cent, to 6716.1 in the final full week of September, the S&P/ASX200 index … Continue reading

28 Sept 2019 (AFR) – US stocks hit 3-week low as trade tensions rise

(28 September 2019, AFR online, Sarah Ponczek and Vildana Hajric) ‘New York | A week dominated by political drama in Washington ended with the spectre of a deepening trade war, sending US stocks to a three-week low and bolstering demand for haven assets. The S&P 500 fell 1.1 per cent in the five days to … Continue reading

26 Sept 2019 (AFR) – ASX tumbles on geopolitical tensions

(26 September 2019, AFR, p26, William McInnes, Reporter) ‘The Australian sharemarket was hit on Wednesday, as a flurry of trade and political headlines weighed on global equity markets. Investors were forced to contend with a number of issues, as British Prime Minister Boris Johnson’s decision to prorogue parliament was overturned, the US ramped up its … Continue reading

26 Sept 2019 (AFR) – Court propels Brexit deeper into uncharted waters

(26 September 2019, AFR, p12, Hans van Leeuwen, Europe correspondent) ‘Brighton, England | You know a country has arrived in a strange place when people are glued to the televised proceedings of parliament, or to the sight of a Supreme Court chief judge reading out a biscuit-dry ruling on constitutional law. Britain is in that … Continue reading

26 Sept 2019 (AFR) – Anglosphere rattled by fresh political crises – Impeachment threat, Brexit rattle global confidence

(26 September 2019, AFR, p1, Jacob Greber and Hans van Leeuwen) ‘New York | The English-speaking world’s two biggest economies are  embroiled in fresh political upheaval that threatens to derail global confidence already battered by deteriorating tensions over China. Over 12 drama-packed hours, the United Kingdom’s Supreme Court ruled that Prime Minister Boris Johnson’s attempted five-week … Continue reading

25 Sept 2019 (AFR) – How what happens on Wall Street matters more than ever

(25 September 2019, AFR, p34, Patrick Commins, Columnist) ‘The spring of the global economic recovery didn’t last long. As I have written, in August Google searches containing the word “recession” peaked at a post-GFC high. Then the mood shifted. The chill thawed. Economic data began to beat (granted, lower) expectations. Emblematic of this climbing optimism, … Continue reading

25 Sept 2019 (AFR) – The return of value investing – As the gloom gathers, value investing shines brighter

[COMMENT: Warning!! Make sure to read this article in entirety before deciding whether the information is useful or not.] (25 September 2019, AFR, p31,  Michael McCarthy) ‘Value investing has intuitive appeal. Identify a company with a value higher than its current share price, buy and wait. Eventually, the short-term “voting machine” that is the market … Continue reading

25 Sept 2019 (AFR) – Why investors are shunning active and chasing passive

(25 September 2019, AFR, p31, William McInnes, Reporter) ‘Active managers have struggled with fund flows this year as investors opt out into cheaper passive funds. The local sharemarket has gained more than 20 per cent since the start of the year, a performance many active managers have struggled to match. Even including the drawdown in … Continue reading

25 Sept 2019 (AFR) – CBA slashes fixed rates as home loan war heats up

(25 September 2019, AFR, p12, Duncan Hughes, Reporter) ‘The Commonwealth Bank, the nation’s biggest lender, slashed its fixed rates by up to 90 basis points across its mortgage range as the battle for market share among the major banks intensifies. Other banks, including Westpac – the second-largest lender, are easing borrowing requirements and increasing cash … Continue reading

23 Sept 2019 (AFR) – Chinese demand drives Singapore luxury apartment sales to 11-year high

(23 September 2019, AFR, p34, Aradhana Aravindan) ‘Singapore | Sales of Singapore apartments worth at least S$10 million ($7.3 million) have hit an 11-year high, fuelled by increased demand from Chinese millionaires seeking safe-haven assets, say property consultants OrangeTee & Tie.’ Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

23 Sept 2019 (AFR) – There are still too many risks to chase value stocks

(23 September 2019, AFR, p20,  Jun Bei Liu) ‘There is never a dull day on the sharemarket. The end of the volatile reporting season marked the beginning of the great rotation from recent winners into losers, so to speak. The US equity market staged a five-standard deviation rally − a particularly rare event − of … Continue reading

23 Sept 2019 (AFR) – Markets are on the cusp of a historic backflip

(23 September 2019, AFR, p13, Vesna Poljak, Markets Editor) ‘One of the most remarkable things in the macro world is how financial markets and the US Federal Reserve have drifted this year in their view of the US economy. Last week, the Fed voted 7-3 to cut its key rate, as widely expected, to the … Continue reading

23 Sept 2019 (AFR) – Auction clearances hold steady even as volumes rise for spring

(23 September 2019, AFR, p6, Nick Lenaghan, Property Editor) ‘Clearances rates across the major markets of Sydney and Melbourne have held up amid a surge in auction listings as the traditional spring selling season gains momentum. Nationally the clearance rate was 74 per cent, on preliminary figures from CoreLogic. Sydney was at 76.6 per cent … Continue reading

23 Sept 2019 (AFR) – Economy needs fiscal stimulus not more debt, warns Morgan Stanley

(23 September 2019, AFR, p6, Duncan Hughes, Reporter) ‘Residential property is in a trough and dragging along market bottom rather than set for a rebound that will reinvigorate the economy, according to analysis by global investment bank Morgan Stanley. Sustained economic recovery will be generated by fiscal expansion driving employment and salary growth, rather than … Continue reading

23 Sept 2019 (TheAge) – ‘Vaguely troubling’: Negative yielding debt hits $US17 trillion

(23 September 2019, The Age, Business, p26, By Clancy Yeates) ‘The Bank for International Settlements (BIS) has underlined the extent to which once “unthinkable” financial trends are now “routine,” after the global stock of debt with negative interest rates hit $US17 trillion ($25 trillion). In its latest quarterly review, the BIS noted that as global … Continue reading

21 Sept 2019 (AFR) – The (home) renovation obsession is over

(21 Sept 2019, AFR, p8, Nila Sweeney, Reporter) ‘Despite the obsession with renovation, it appears that fewer homeowners and vendors are sprucing up their property this spring even as the markets have started to turn. An analysis conducted by ServiceSeeking, an online marketplace that lets consumers find and hire tradespeople, showed that the volume of … Continue reading

21 Sept 2019 (AFR) – Growth forecast slashed again, rate cut odds edge higher

(21 September 2019, AFR, p8, John Kehoe and Matthew Cranston) ‘Australia’s economic growth forecast has been slashed to 1.7 per cent this year by the Organisation for Economic Cooperation and Development, which has warned the global economy is “increasingly fragile and uncertain” because of trade wars. The OECD’s interim economic outlook said international economic growth … Continue reading

21 Sept 2019 (AFR) – Pimco says brace for more funding market stress

(21 September 2019, AFR, p32, Robert Guy) ‘Bond fund giant Pimco warned of more frequent stress in funding markets after overnight rates spiked this week. Overnight rates on repurchase agreements (or repos) – a vital source of short-term funding for banks and broker-dealers – surged above the upper end of the target range targeted by … Continue reading

21 Sept 2019 (AFR) – Oil, deals, earnings lift ASX to fifth week of gains

(21 September 2019, AFR, p33, Sarah Turner and Elouise Fowler) ‘Monetary easing, a rally in crude oil, and improving earnings helped the Australian market seal its fifth straight week of gains, with the energy sector leading the advance. The US Federal Reserve lowered the Fed funds rate to between 1.75 per cent and 2 per … Continue reading

20 Sept 2019 (AFR) – ASX hits seven-week high on rate cut hopes

(20 September 2019, AFR, p28, Elouise FowlerReporter) ‘Stocks rallied to a seven-week high on Thursday after the US Federal Reserve cut interest rates and as a rise in the jobless rate boosted the chance of the Reserve Bank of Australia cutting interest rates next month. The S&P/ASX200 closed up 0.5 per cent at 6717.5 points, … Continue reading

20 Sept 2019 (TheAge) – Rate cut on cards to boost economy even as budget strengthens

(20 September 2019, The Age, p5, By Shane Wright and Eryk Bagshaw) ‘Interest rates could be cut to 0.75 per cent within a fortnight as unemployment ticks up and the economy struggles to shake itself out of its rut, despite the Morrison government delivering the best budget bottom line in a decade. Commonwealth Bank, JP … Continue reading

20 Sept 2019 (AFR) – Brickworks boss says housing already picking up

(20 September 2019, AFR, p15, Simon Evans, Senior Reporter) ‘The boss of Australia’s biggest brick-making company says the housing market is already starting to improve, with orders and sales having stabilised, and he expects it to begin rising again beginning in January next year. The bottom has already passed in the housing cycle, said Brickworks … Continue reading

20 Sept 2019 (AFR) – Families in financial funk despite reasons to be cheerful

(20 September 2019, AFR, p4, Duncan Hughes, Reporter) ‘Australian families are in a financial funk, despite tax and rate cuts and improving sentiment about the residential property market, according to analysis by global investment bank Morgan Stanley. Paying down credit card and mortgage debt is their biggest priority, rather than splashing additional cash on consumer … Continue reading

20 Sept 2019 (AFR) – RBA rate cut chances surge after jobs data

(20 September 2019, AFR, p1, Matthew Cranston and Sarah Turner) ‘Expectations for the Reserve Bank of Australia to cut the official interest rate to 0.75 per cent in less than a fortnight have surged following a worse than expected unemployment rate and pressure to cut following the US Federal Reserve move on Thursday. Futures markets … Continue reading

19 Sept 2019 (AFR) – Retailers say stimulus will take months to flow through to sales

(19 September 2019, AFR, p17, Sue Mitchell, Senior Reporter) ‘Retailers say stimulus from tax cuts is likely to take months rather than weeks to boost retail sales, while record low interest rates are spooking consumers rather than spurring them to loosen their wallets. The chief executives of Australia’s largest shopping centre owner, Scentre Group, online … Continue reading

18 Sept 2019 (AFR) – Sydney median house price rises in June quarter

(18 September 2019, AFR, p32, Michael Bleby, Senior Reporter) ‘Sydney’s median house price rose to $875,000 in the June quarter, marking the first increase in a year as buyers returned to the market after the federal election and greater optimism about prospects for the property market. The higher median price – up from $870,000 in … Continue reading

18 Sept 2019 (AFR) – Victoria to slip back into housing deficit as approvals slump

(18 September 2019, AFR, p30,  Michael Bleby, Senior Reporter) ‘Victoria is headed for a stark shortage of housing after a collapse in new housing approvals last year shrank the pipeline of new homes and pulled the country’s second-largest state back into a development deficit, the Urban Development Institute of Australia says. New dwelling approvals sank … Continue reading