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Bugger innovation, buy a house instead!

By Leith van Onselen It’s an upside down economy that we live in, that’s for sure. Yesterday evening, The AFR reported that tax breaks for companies conducting research and development (R&D) had risen by more than anticipated, and the Government is now being urged to reign them in: The R&D tax incentive scheme was worth


Links 12 February 2016

Global Macro / Markets / Investing: This is a global stock market rout worth celebrating – The Telegraph Negative Interest Rate Policies May Be Part of the Problem – PIMCO The world can’t afford another financial crash – it could destroy capitalism as we know it – The Telegraph Some Hedge Funds Want to Make


APRA ignores offshore funding elephant

By Leith van Onselen APRA chair, Wayne Byres, appeared before Senate Estimates today and gave the Australian financial system a clean bill of health, stating it remains “fundamentally sound”. From Business Spectator: Appearing before a senate committee this morning, Australian Prudential Regulation Authority (APRA) chair Wayne Byres said nothing that had occurred in the last


US oil producer dumps stock

From Reuters: U.S. refiner Phillips 66 dumped crude for immediate delivery in Cushing, Oklahoma on Wednesday, sparking speculation that the move reflected advance warning of looming output cuts amid sluggish winter demand and record inventories. The unusual sales of excess oil added pressure to the March/April WTI futures spread, with the front-month discount widening to


Modernising Medicare good in theory

Cross-posted from The Conversation: The Australian government is investigating the possibility of privatising the payment services associated with Medicare, the Pharmaceutical Benefits Scheme, aged care services and veteran affairs. Health Minister Susan Ley says payment systems associated with these services have not kept up with the times and are not delivering the types of user-friendly,


Suncorp’s dividend omen

Suncorp released its results this morning which included a 21% cut to the dividend: Suncorp Group Limited (Suncorp) today reported net profit after tax (NPAT) of $530 million (HY15: $631 million) for the six months to 31 December 2015. Profit after tax from business lines was $544 million (HY15: $681 million). Chairman Ziggy Switkowski said Suncorp


Is CBA really worth it?

Deutsche Bank has a very good take on CBA today (and a Hold rating): Defensive qualities on show but PE rel vs peers very elevated CBA’s 1H16 result was somewhat of a mixed bag. While its net interest margin disappointed due to weakness in Insto & NZ, cost growth was stubbornly high and impairment expense increased, this


Private college collapse reveals failed system

By Leith van Onselen The next sorry chapter in Australia’s private vocational education scam has seen thousands of students left in limbo and carrying large debts as at least four colleges have collapsed. From The Age: Aspire College of Education, The Design Works College of Design, RTO Services Group and the Australian Indigenous College were