Latest posts

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Coalition to further tighten foreign investor rules

By Leith van Onselen As reported in The Australian this morning, the Abbott Government is set to further strengthen Australia’s foreign investment rules by banning sales to non-residents for the purchase and knock-down of an established dwelling, as well as extending penalties to migration agents marketing Australian temporary residency so that foreigners can buy established

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Is Australia still a developed country?

By Alpha Beta Strategy and Economics, republished with permission Resource exports still tanking Australia’s trade data released yesterday shows that our resources exports are in serious trouble. The news coverage has positively reported that our ‘trade deficit shrank in May’. But the lift in our exports this month was less than 1% and a blip

3

US jobs decent but no cigar

The June US jobs report is out and was decent: Total nonfarm payroll employment increased by 223,000 in June, and the unemployment rate declined to 5.3 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, health care, retail trade, financial activities, and in transportation and warehousing. …

6

Daily iron ore price update (crash)

Here are the iron ore charts for June 2, 2015: Do not adjust your television set. Spot iron ore crashed yesterday. Benchmark Tianjin fell $3.10 to $55.80 and Qingdao spot fell $3.57, or 6.03%, to $55.63 a tonne. That’s a nice head and shoulders top in place with a busted neckline suggesting (on technicals) much more downside. Singapore

5

Anglo to slash and burn jobs

From The Times: Anglo American is planning to cut between 5 and 20 percent of staff at head offices around the world, sources close to the matter said, in an effort to keep shareholders on side and respond to a commodity price rout that has hit profits. The mining company, which employs some 151,200 staff

0

China property stablised but at risk

Cross-posted from Investing in Chinese Stocks. Developers are not planning to expand but run down inventory: Developers will focus on reducing inventory in the second half of the year. The average firm completed only 41.4% of its sales target for the year, with some under 40% that will be under pressure in the second half.

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Links 3 July 2015

Global Macro / Markets / investing: Raging Bull Markets: How Young Men’s Hormones Unsettle Finance – Bloomberg How major asset classes performed in June 2015: in short not so hot – Capital Spectator North America: Puerto Rico’s Pain Is Tied to U.S. Wages – Wall Street Journal Why Congress Should Let Puerto Rico Declare Bankruptcy

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets IG’s Greek referendum playbook For traders, chaos presents opportunities and the current conditions are certainly conducive for many traders. The key themes remain around Greece, data-dependent US policy and the recent swings in Chinese equities. Figures out of the US have been positive heading into non-farm payrolls

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Lower AUD good news for tourism industry

By Leith van Onselen Fairfax is reporting this afternoon that Australia’s tourism operators remain concerned about the elevated Australian dollar, which is making life more difficult that it should be: The latest industry sentiment survey released by Tourism & Transport Forum and MasterCard found the level of the exchange rate remained the chief concern among

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Off-market home sales fuelled by Chinese social media

By Leith van Onselen From Domain today comes fresh insight into how Australia’s real estate agents are offloading homes to the Chinese, some of whom are likely non-residents: Agents are posting an increasing number of properties on Chinese social-media platforms such as WeChat before advertising them to the general market, meaning many of them are being snapped up behind closed

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Trade deficit fails to recover from last month’s shocker

By Leith van Onselen The Australian Bureau of Statistics (ABS) today releasing trade data for the month of May, with Australia’s trade deficit improving to $2,751 million after last month’s record blow-out. The result still missed analyst’s expectations, who had expected a trade deficit of only $2.23 billion. It was the 14th monthly trade deficit

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How Australia’s Budget is eating our Children

By Leith van Onselen Following on from my post earlier today on the Grattan Institute’s new report, Fiscal Challenges for Australia, which examines Australia’s weakening budgetary position and some of the revenue measures needed to address it, Grattan’s CEO, John Daley, has appeared in The AFR warning of a huge hit to living standards for

41

China rejects Aussie coal cargoes

From the AFR: China has been rejecting Australian coal cargos that don’t pass new import quality restrictions, and the local industry is concerned that the testing is being misused to favour China’s struggling coal industry. Minerals Council of Australia coal boss Greg Evans has called for the regime to be suspended to give officials from both countries a

8

China relaxes margin trading requirements

From Forexlive: More from Xinhua, via Reuters: China securities regulator relaxes rules on margin trading China securities regulator amends rules including margin trading asset threshold for individual investors China’s securities regulator to allow stock brokerages to issue bonds to widen funding channels (note …. news from the China Securities Regulatory Commission announced at around 10:40

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No reform, dissent, carbon or poofters

Really, someone needs to commence a campaign that aims to rescue the term “liberal” from the Liberal Party. It’s not liberal economically, democratically nor socially. At least, its leadership isn’t and it appears to be setting the agenda so neither is the Party. Witness, right now Australia confronts three big issues. The first is the economy

5

Triguboffonomic panic 6.0

By Leith van Onselen Robert Gottliebsen (“Gotti”) has obviously gotten off the phone again with his mate, “Highrise” Harry Triguboff, since he has penned another post warning of a downturn in apartment construction now that the rules around significant investor visa’s (SIVs) investing in Australian real estate have been tightened. From Business Spectator: In the

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Risky business for Australia’s FHB investors

By Leith van Onselen ABC’s 7.30 Report ran an interesting segment last night looking at the issue of first home buyer (FHB) investors, who are a growing breed in Australia as they seek back-door entry into Australia’s unaffordable housing market. As explained in the segment by Martin North from Digital Finance Analytics, nearly one half

1

Markets go long Greek happiness

The FT makes the Greek situation as clear as is possible: Greece’s prime minister accused Europe’s leaders of attempting to “blackmail” Greek voters, just hours after apparently holding out an olive branch to the country’s creditors by accepting most of the terms of the economic reform plan they had tabled last weekend. Eurozone officials said they

18

Grattan Institute slams Budget hopium

By Leith van Onselen The Grattan Institute has released an excellent new report, entitled Fiscal Challenges for Australia, which examines Australia’s weakening budgetary position and some of the revenue measures needed to address it. The report finds that both major parties have been relying on bracket creep (aka ‘fiscal drag’) and favourable economic conditions to