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Housing credit growth stabilises in May

By Leith van Onselen The Reserve Bank of Australia (RBA) today released its private sector credit aggregates data for the month of May: A chart showing the long-run breakdown in the components is provided below: Personal credit growth (-0.1% MoM; 0.0% QoQ; 0.8% YoY) remains in the gutter, whereas business credit growth (0.4% MoM; 0.6%


Sugar industry urges MPs to block TPP

By Leith van Onselen Australia’s sugar industry has stepped-up its campaign against the Trans-Pacific Partnership (TPP) trade pact, lobbying MPs to block the agreement unless substantial sugar access is achieved. From last night’s ABC Lateline: EMMA ALBERICI, PRESENTER: As the final moments tick down, Australian sugarcane growers have joined the fight, urging MPs to reconsider


Perth property already “feels like a recession”

By Leith van Onselen The Real Estate Institute of Western Australia’s (REIWA) call last week that the Perth housing market is set to soar has been given a good old fashioned reality check, with a number of property ‘experts’ claiming that it “feels just like a recession”. From The AFR: Property Council of Australia executive


Time to celebrate lower population growth

By Leith van Onselen An number of commentators expressed concern yesterday at Australia’s population growth figures for the December quarter, which came in lower than expected at only 1.42%, arguing that it will materially slow Australia’s economy. From The AFR: The unexpected slowdown in Australia’s population throws up yet another challenge for Treasurer Joe Hockey,


Dreadful RIO analysis

From the Motley Fool: Strategy Rio Tinto’s strategy of increasing production at a time when prices are depressed is a sound move. Certainly, it has been argued that it has added a downward pressure on the price of iron ore and, while this may be true, Rio Tinto has correctly sought to strengthen its own


Parko slams both parties’ Budget ineptitude

By Leith van Onselen Former Australian Treasury Secretary, Martin Parkinson, has given both major parties a strong dose of Budget medicine, slamming them for putting populist politics ahead of the nation’s finances and economy. Appearing at a conference at the Australian National University (ANU) yesterday, Dr Parkinson warned that Australia’s economic growth is under threat,


Abbott spins his polling wheels

Lipstick applied to the pig today at The Australian: Support for the federal government has risen to an 18-month high in Tony Abbott’s home state of NSW but the Coalition continues to struggle in Victoria and South Australia. An analysis of Newspolls conducted for The Australian over the past three months shows Labor’s support in NSW


Shanghai’s margin boom implodes

Via FTAlphaville comes Goldman on the Chinese stock implosion: …the current annualized turnover velocity of 17.8x, which implies an average holding period of around 14 days, applies to ALL leveraged positions, we estimate that the current average cost basis of investors’ portfolio to be at around the 4855 level for SHCOMP and 5037 for CSI300 (i.e.


Links 30 June 2015

Global Macro / Markets / Investing: How equity markets react to crises – Disciplined Investing The S&P 500 is working its way towards oversold – The Short Side of Long Why do so many investors persist in trying to beat the market? – A Wealth of Common Sense Gross Gets Personal: ‘I Just Wanted to


ASX at the close

Chris Weston, Chief Market Strategist at IG Markets The three main macro issues at the centre of markets this year all come into full effect this week, with China, Greece and US economics all dominating news flow. The monthly US jobs report is announced on Thursday, with expectations of 230,000 jobs created. Still, traders will


Mining sector leads wages. But not for long!

By Leith van Onselen The ABS today released its annual Australian Industry report covering the 2013-14 financial year, which includes estimates at a sub-industry level of employment, detailed income and expenses information, and profits. CommSec has taken the time to disaggregate the data, and has revealed that the resources sector contained the four highest paid