Weekend Links 13-14 February, 2016

Tug Boat in a Boat, 1956, John Perceval, National Gallery of Victoria China M&A: China’s world of debt – FT.com Overhauling China – Project-Syndicate China’s Crisis of Miscommunication – Project-Syndicate China’s Exchange-Rate Trap – Project-Syndicate, Eichengreen Pollution crisis is choking the Chinese economy – CNBC Medical Fees Proposal Jolts China’s Pensioners – Caixin China’s economic

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets The tone in Asia has generally been downbeat, with Japanese equities taking an absolute bath on volumes 120% above the 100-day average. The focus from APAC clients has been on gold, oil, USD/JPY, Nikkei and we have seen buying in Hang Seng after a bounce off support


Navigating the tax maze

Cross-posted from The Conversation: Much of the current tax debate is mangled by poor analysis and misconceptions. Let’s consider three topics: “bracket creep”; corporate tax rates; and negative gearing. The fact that inflation, more precisely wages growth, pushes individuals into higher marginal tax brackets has been advanced as the rationale for a variety of tax


Credit Suisse: NIRPFAIL!

From Credit Suisse: Global central banks are increasingly adopting negative rates to support growth and hold off deflation. However, as much as central banks are trying to support the global monetary system we think they could be undermining it. Negative rates have become a problem and are not the solution, in our view.Sub-zero policy lowers net


JPM wizard says gold and recession

Some of you will no doubt be familiar with JPM Gandalf A.K.A Marko Kolanovic, from Bloomberg: That’s what happened yesterday. So render unto Federal Reserve Chair Janet Yellen what is rightly hers for delivering a reassuring pep talk last night that’s helping to boost stocks today, but reserve a wee bit of conjecture for the possibility


Property Council a wedge between Turnbull/Morrison?

From Domainfax: Little-known tensions between Malcolm Turnbull and Treasurer Scott Morrison prompted the Prime Minister to push previously secret Treasury modelling into the public on Friday – earlier than originally planned. Sources say relations between Mr Turnbull and Mr Morrison have become tense over the extent of tax reform policy, with the Treasurer keen to


Immigration hits 8 1/2 year low

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released visitor arrivals and departures data for the month of December, which registered further falls in net long-term and permanent migration into Australia. In the 2015 calendar year, there were 675,800 permanent and long-term arrivals into Australia – down from the record 792,500 arrivals


Another super rent seeker talks its book

By Leith van Onselen Andrew Bragg, director of policy at the Financial Services Council (FSC) – an industry body representing the interests of Australia’s leading wealth managers – has written a tirade in The Australian lobbying against superannuation reform along with a lift in the compulsory superannuation rate: Superannuation is our only truly intergenerational policy.


Captain Glenn falls further behind the curve

From the slow motion Captain in Parliament: Opening Statement to the House of Representatives Standing Committee on Economics Sydney – 12 February 201 Glenn Stevens Governor Chair Members of the Committee Since the Committee’s previous meeting in September, we have continued to see evidence that economic activity outside the resources sector has been gradually improving.


Work for the dole a dud

By Leith van Onselen A new 90-page review into the Government’s $1 billion work-for-the-dole program has found that it has had barely improved the probability of the unemployed finding work. From The Canberra Times: “It is estimated that in the short-term [work for the dole] resulted in an additional 2 percentage point increase in the