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Productivity Commission calls for super reform

By Leith van Onselen The Productivity Commission (PC) has joined the conga line of experts – including Financial System Review head David Murray and the Australian Treasury – calling for reform of Australia’s superannuation system. In a research paper entitled Superannuation Policy for Post-Retirement, the PC reiterates how population ageing will greatly increase the demands

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EZ gives Greece one last chance, lol

From the FT: Athens will be given a final chance to present a new reform plan to eurozone leaders on Tuesday night despite a hardening attitude to Greece in many capitals after the emphatic rejection of previous bailout terms in Sunday’s referendum. But eurozone officials said leaders were unlikely to agree to restart rescue talks

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Why gold is going nowhere

From Miranda Maxwell at Dad’s Army: In a volatile period for global markets, gold has been a nonstarter, failing to sustain a rally this month even as Greece proudly voted for noone-knows-precisely-what, and China’s stock market crashed causing “horror and anxiety.” …Surely that’s a time to embrace a safe haven? Indeed the US dollar hit

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Treasury releases foreign investment reforms

The Australian Treasury yesterday released the Exposure Drafts and Regulatory Impact Statement of legislation designed to tighten foreign investment rules, including those relating to residential real estate. On 2 May 2015, the Government announced a package of reforms to strengthen the foreign investment framework, including: stronger enforcement of the foreign investment rules by transferring all

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China’s centrally planned stock bubble fail

From Investing in Chinese Stocks comes a great line up of centrally-planned margin lending fails: December 2014: The shadowy trading behind China’s stock market boom This mania for margin trading—which allows individual investors to borrow from the broker to up the amount of their stock bets, magnifying the size of gains and losses—is a new thing.

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Links 7 July 2015

Global Macro / Markets / Investing: Why You Should Short Coal – Bloomberg View Oil tumbles 6 percent after Greek ’No’ vote, ahead of Iran deadline – Reuters Beijing Upends the Market – Wall Street Journal North America: Colorado’s Effort Against Teenage Pregnancies Is a Startling Success – New York Times Can America’s Big Banks

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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets I am going to be the first to put my hand up and say I expected a much more aggressive reaction to a ‘no’ vote. It has to be said that despite markets adopting a definitive risk-aversion feel, the mood has felt quite calm and there is

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Yanis driven out

Fresh from the blog of Yanis Varoufakis: The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage. Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore,

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Shanghai crash resumes

Sorry, last one for the day. After launching nearly 8% this morning, Shanghai has now completely rolled over and is in the red: Chinext has been flogged 6%: On previous days this set up has tended to end with SSE capitalution…(by the way, I promise to kick this bust-watching habit).

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Chinext goes splat

It’s not exactly high level blogging but China bust watching is fun! Shanghai is barely positive for the day now: As Chinext goes splat, down -4% and below Friday’s lows: How do you say ‘lost credibility’ in Mandarin for Chinese authorities?

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Greece mulls printing counterfiet euros

From Ambrose Evans-Pritchard: Top Syriza officials say they are considering drastic steps to boost liquidity and shore up the banking system, should the ECB refuse to give the country enough breathing room for a fresh talks. “If necessary, we will issue parallel liquidity and California-style IOU’s, in an electronic form. We should have done it

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Shadow RBA says…

Whatever! In Greece the economic tragedy appears to be in its final act, while dramatic falls in the Chinese stock market highlight the weaknesses of its economy. Domestic economic data is mixed: unemployment has fallen slightly but consumer and producer confidence have weakened. Inflation remains comfortably within the RBA’s target band. The CAMA RBA Shadow

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Shanghai struggles despite bailout (updated)

Shanghai opened a nice 5% higher this morning following the weekend’s kitchen sink bailout but had faded now to 2.5%: Worryingly, the high beta Chinext market has rolled and is now down 2%: I’ll be honest, I have no idea where this bubble will go next. If you put a gun to my head I’d say

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Alan Oxley’s TPP defence fails again

By Leith van Onselen Vocal Free Trade Agreement (FTA) advocate, Alan Oxley, has delivered another Panglossian view of the Trans-Pacific Partnership (TPP), which he claims will “will open services markets and free up investment”. From The AFR: Free trade and the Trans Pacific Partnership trade agreement has been roundly attacked, but mostly by groups that