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Markets go long Greek happiness

The FT makes the Greek situation as clear as is possible: Greece’s prime minister accused Europe’s leaders of attempting to “blackmail” Greek voters, just hours after apparently holding out an olive branch to the country’s creditors by accepting most of the terms of the economic reform plan they had tabled last weekend. Eurozone officials said they

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Grattan Institute slams Budget hopium

By Leith van Onselen The Grattan Institute has released an excellent new report, entitled Fiscal Challenges for Australia, which examines Australia’s weakening budgetary position and some of the revenue measures needed to address it. The report finds that both major parties have been relying on bracket creep (aka ‘fiscal drag’) and favourable economic conditions to

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China property bifurcation continues

Cross-posted from Investing in Chinese Stocks. 53 cities up, 46 down and 1 flat. 15 cities saw prices rise more than 1%. Number of cities falling more than 1% fell to 12. Here is your bifurcation headline number: the median new home price increased 1.03% in June. The bottom cities were not no names. Rizhao,

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Links July 2, 2015

Macro & Markets China targets counterweight in gold trade with yuan fix – SCMP USDA report pushes grain futures to ‘staggering’ heights – ABC ‘Spectacular rallies’ await investors who buy Greece now – Market Watch…let’s see those cojones… Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases – Bloomberg…maybe they should invest in Greek

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Certainly, the various polls are suggesting the ’yes’ camp has the upper hand, although this stance could still lead to increased uncertainty and the bookies subsequently expect Alexis Tsipras to step down on this development. On a ‘no’ vote, reports that German Finance Minister Wolfgang Schaeuble is

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Greek polling backs “no” vote

Breaking from Reuters: 01-Jul-2015 12:25:33 PM – GREEK BAILOUT REFERENDUM OPINION POLL (RESPONSES BEFORE BANK CLOSURE) – YES 30 PCT, NO 57 PCT, DON’T KNOW 13 PCT 01-Jul-2015 12:25:33 PM – GREEK BAILOUT REFERENDUM OPINION POLL (RESPONSES AFTER BANK CLOSURE) – YES 37 PCT, NO 46 PCT, DON’T KNOW 17 PCT Grexit!

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Gotti enters Australian dollar Twilight Zone

 From old man Gotti at Dad’s Army: It is now clear that China’s economy is slowing faster than the government would like, and so it has now intervened by lowering interest rates and stabilising the share market. …This makes the Reserve Bank even more anxious for a fall in the Australian dollar, which is holding stubbornly

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Abbott: We will never touch taxes on super

By Leith van Onselen Tony Abbott is sticking to his “captain’s call” refusing to reform superannuation, reaffirming his stance this afternoon, via Business Spectator: Prime Minister Tony Abbott has ruled out ever increasing taxes on superannuation… “We have made a very clear decision that we aren’t ever going to increase the taxes on super,” Mr

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BHP, RIO, FMG tank on futures

Is the great iron ore miner bust finally upon us? It’s still too early in my view but the fundamentals and technicals are fast slipping away and you never know. BHP and RIO are both down 2% or so today and are near technical breakdown. FMG is down 5% and right on terminal support around

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Engineering construction tumbles off mining cliff

By Leith van Onselen The ABS has released engineering construction data for the March quarter of 2015, which revealed a 7.0% seasonally adjusted fall in the value of work done over the quarter, a 20.3% fall over the year, and an ongoing reduction in the construction pipeline. According to the ABS, private sector engineering construction

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Apartment surge offsets weak houses

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released dwelling approvals data for the month of May. At the national level, the number of dwelling approvals rose by a seasonally adjusted 2.4% to 19,414. The overall rise was driven by the volatile unit and apartment segment, which surged by 16.6% in May.

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Profiling Australia’s hedge funds

Cross-posted from Martin North: ASIC today published their report into the Australian Hedge Funds Industry. It draws from aggregated industry data and a survey to September 2014. Hedge funds comprise about 4% of managed funds in Australia, $95bn compared with $2,407bn. Superannuation funds accounted for approximately three-quarters of this total with nearly $1,789 billion in

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UBS: Property has peaked

From the excellent Jonathon Mott at UBS Macro-Prudential tightening takes effect In December APRA announced a heightened focus on sound lending practices and banks growing Investment Property Loan (IPL) credit above 10%. This was followed by a mortgage serviceability survey which found many practices that were “less than prudent”. Following communications with APRA the banks have tightened underwriting standards

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US shuts Gina bank

From the AFR: The US government bank that has injected almost $10 billion into Australian resources projects, including Gina Rinehart’s Roy Hill iron ore mine, is shutting down, leaving a potential funding hole for future mining development. US political conservatives have successfully waged an ideological war against the taxpayer-backed US Export-Import Bank, arguing it is