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Shadow RBA buries head deeper in sand

From the Shadow: A Greek debt default and exit from the Euro have been averted, while the rout of the Chinese stock market continues. There exist little new domestic data to guide the Reserve Bank this month. Official inflation equals 1.5%, well below the RBA’s target band. The CAMA RBA Shadow Board on balance prefers

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Bronny falls on own chopper blades

From the AFR: Tony Abbott has secured Bronwyn Bishop’s resignation as Speaker but has defied public anger over her spendthrift ways by clearing her of any wrongdoing and blaming the parliamentary entitlements system. The Prime Minister accepted Mrs Bishop’s resignation and announced a “root and branch review” of entitlements in a decision he hoped would end three weeks of chaos

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Joe Hockey lies again about negative gearing

By Leith van Onselen The negative gearing ‘whack-a-mole’ continues, with Treasurer Joe Hockey repeating the lie over the weekend that negative gearing is being used primarily by ordinary workers. From The Australian: In his strongest warning yet against changing the tax breaks, the Treasurer told The Weekend Australian there was “no merit” to amending the

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Auction clearances slowly descend from orbit

Core Logic-RP Data released its auction market report yesterday, which revealed a small decline in the national auction clearance rate. The preliminary national clearance rate was 75.7%, down from the 77.7% rate recorded last weekend, according to Core Logic-RP Data: Sydney’s clearance rate fell by 3.9% to 78.8%, whereas Melbourne’s was 76.8%, up from the

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Obama accelerates war on coal

From the FT: The Obama administration will on Monday unveil the most far-reaching action on climate change in US history by imposing stringent emissions cuts on the power sector, a move that faces ferocious opposition from political rivals and industry. …Overall, it will demand that the US power sector reduces carbon emissions by 32 per

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Daily iron ore price update (steel meltdown)

Here are the iron ore charts for July 31, 2015: As well as Qingdao falls, Tianjin benchmark iron ore fell 3% to $52.90. Unusually, this was despite only minor moves falls in Dalian and rises in Singapore. Indeed, Dalian rallied Friday night to 370 and is virtually unchanged from Thursday. The rebar average bounce continues as CISA

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QLD’s great LNG job shedding rolls on

From Mining Australia: With the construction phase winding down for LNG projects on Curtis Island, key contractor Bechtel is laying off approximately 600 employees per month. Gladstone Observer reported that camps have already begun the decommissioning phase, and that the company is looking at offloading equipment and machinery, including $9 million worth of vehicles. More

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The great China trade is over

From Bernstein via FTAlphaville: In our view, the worst thing about China’s slowdown is not the risk of some kind of cataclysmic economic meltdown or financial crisis but that – in sector after sector – the investable ways to “play” China shrink to the local names on the right side. If you wanted to participate

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Fed hawks get smoked

The vast majority of economists, that are currently forecasting an imminent US rate hike, got smoked Friday night on two fronts. The first was the oil price which is tumbling and clearly headed to $50 and probably a retest of lows in the $48s which very possibly won’t hold, either. This alone would delay the

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Links 3 August 2015

Global Macro / Markets / Investing: Inflation Paranoia as a Tribal Marker – New York Times Monetary policy at the zero lower bound – VOX Is “Secular Stagnation” a Monetary-Financial Problem or a Fundamental-Technological Problem? – Equitable Growth No Hesitations: On the Great Financial Panic of 2007 – fxdiebold.blogspot.com Bank of England or Federal Reserve:

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Weekend Links, August 1-2, 2015

China Letting China’s Bubble Burst – Project-Syndicate China’s little secret – a thriving free market in shares – SCMP China securities regulator asks for stock trading records from Hong Kong and Singapore in hunt for short sellers – SCMP Hebei’s Big Idea for Clean Coal Yields Few Results – Caixin Villain or Hero for Stock

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Afternoon trade in Australia seems about as quiet and lethargic as the Australian supporters in the Edgbaston stands. If we look at price action though, there hasn’t been a huge amount of concern about holding mining stocks into the weekend and the release of China manufacturing PMI

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Why Syd/Melb housing is highly overvalued

By Leith van Onselen The AFR’s Chris Joye has posted an excellent article this afternoon effectively debunking the RBA’s Dr Peter Tulip, who earlier this month ridiculously claimed that Australian housing was 30% undervalued. In the article, Joye reviews new housing valuation analysis produced by Dr Craig Shepherd, an economist with the $10 billion fund

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Investor lending sucks finance from businesses

By Leith van Onselen The Reserve Bank of Australia (RBA) today released its private sector credit aggregates data for the month of June: A chart showing the long-run breakdown in the components is provided below: Personal credit growth (0.1% MoM; -0.2% QoQ; 0.4% YoY) remains in the gutter, whereas business credit growth (0.0% MoM; 0.3%

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BT Financial Group chief urges super reform

By Leith van Onselen BT Financial Group chief, Brad Cooper, has entered the superannuation debate, amongst other things calling for retirees to start paying income tax on annual superannuation earnings of more than $150,000. From The AFR: Mr Cooper will on Friday call on the Abbott government to restore the Low Income Superannuation Contribution it