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

Latest posts


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,


Your Twitter bullying days are over

This morning Twitter announced terrible growth numbers and was consequently hammered on market:  Twitter growth has been falling away owing to toxic combination of user exhaustion and abuse and the latter is getting the treatment, from Twitter: On Twitter, every voice has the power to shape the world. We see this power every day, from


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


Bloxo hoses ABS jobs numberwang

You know you’re in trouble when Bloxo hoses you’re bullish data:  Measurement issues in the official labour force survey have made it difficult to track the Australian labour market recently  We construct a ‘labour market index’ using a range of other timely indicators which shows that the improvement may have been more gradual


Cormann blockades Senate negative gearing debate

By Leith van Onselen If you want a prime example of how dysfunctional Australia’s political system is, look no further than the above footage of yesterday’s Senate estimates questions to Australian Treasury head, John Fraser. In the video, The Greens’ Scott Ludlam and Labor’s Penny Wong ask a bunch of legitimate questions about the role,


Costello calls for death taxes on super rich

By Leith van Onselen Tim Costello, chairman for the Community Council for Australia and World Vision CEO, has called for the implementation of a “death tax” for Australia’s super-rich families, which he claims could raise some $5 billion of additional revenue for the Budget, while improving equity. From The Canberra Times: “This should simply be


Janet waffles

And here it is: Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar. These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor


RP Data: Aussie housing values now $6.4 trillion

By Leith van Onselen Core Logic-RP Data has released its February Housing Market and Economic Update, which contains a bunch of useful charts relating to the housing market. According to RP Data, the value of Australia’s total dwelling stock hit a record $6.4 trillion in January, and accounts for more than half (52%) of Australia’s