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


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


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


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:


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


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


Australia: Land of the lie

Cross-posted from The Idiot Tax: If you want to a grand spectacle of over-regulation, under-regulation and bald faced lies told to a populace on a daily basis, come to Australia. You can marvel as the peeps you meet bend over and take it, or just open wide and swallow with the meekest of reactions. Humorous,


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


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%


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


Abbott passes new wind war

From The Australian: The Abbott government is being urged to strip billions more from subsidies to wind farms in the final report of a Senate committee that has already pushed renewable ­energy investment to favour solar. In its recommendations, the committee says renewable energy subsidies for new wind farms should be limited to five years


ASIC flags crackdown on investor mortgage lending

By Leith van Onselen The noose is tightening further around property investors, with the Australian Securities and Investments Commission (ASIC) flagging that it will tighten lending standards on investor mortgage lenders. From The Australian: ASIC chairman Greg Medcraft… [said a] probe into the underwriting standards of a sample of 11 financial institutions had uncovered unacceptable


TPP negotiations come down to the wire

By Leith van Onselen With final negotiations for the Trans-Pacific Partnership (TPP) trade agreement taking place in Hawaii this week, and scheduled to conclude on Friday, there are a bunch of thorny issues still yet to be agreed on. As reported in The AFR, the US is holding-out on granting increased access to its dairy