27

Read if you use Gmail for your MB daily wrap

After four years of supplying the MB daily email to readers that choose (and often pay) to receive it, the monopoly popularly known as Google has mysteriously recategorised your daily MB email into the “promotional” tab within your gmail account. To reverse this inconvenience please follow the steps below. Step one: Click on the “promotions tab” at the top

Latest posts

13

Barnett bailout the new model for economic reform

It appears Colin Barnett’s ineptitude is to be rewarded, from the ABC: Treasurer Joe Hockey has given a strong indication that the formula for dividing GST revenue amongst the states will be changed. …”Clearly it is unfair to have one state receiving less than one-third of the GST paid by its citizens,” he said. “Its

16

Auction clearances remain fully mental

The national auction clearance rate remains stuck in the stratosphere, driven again by super strong demand in Sydney and Melbourne. The preliminary national clearance rate was 79.2%, up marginally from the weekend before Easter (79.0%), with clearance rates still running at their strongest level in six years in trend terms, from RP Data: Sydney’s clearance

0

RP Data weekly housing market update

Click to view Core Logic-RP Data’s latest weekly housing market update, which provides a useful snapshot of the housing market as at 19 April 2015. This week’s report includes: Latest weekly dwelling value results; Auction results & clearance rates; Latest median house & unit prices; Average time on market & vendor discounts; Mortgage market activity;

0

Australian bonds are cheap

After several weeks of curve steepening, the Australian bond curve is once again flattening, broadly thought to be indicative of weakening growth. Short and long yields have been rising but the short end more so as doubts grow around a May rate cut: The to 2/5 year slope is now just 11bps, only 2 points from

8

Fortescue versus the Banana Republic

From Barry Fitzgerald over the weekend: [Andrew] Forrest has drafted in veteran communications specialist John Hurst in the Sydney office of Cannings Corporate Communications to help “shine some light on the debate in the eastern states’’. But the drafting of Hurst does point to Forrest’s intent to make sure his complaints against the Rio and

0

Daily iron ore price update

Here are the iron ore charts for April 17, 2015:    Spot was firm, following paper with Tianjin benchmark up 70 cents to $50.70. Dalian closed up 1 point but fell 3 points to 392 overnight. Rebar has loosened again and port stocks fell a lousy 200k on the week. Texture from Reuters: “Those mills

0

Daily LNG price update (US arb)

The Brent oil price rose marginally Friday night to $63.89. The main support to prices was another decent fall in the US rig count, down 34 to 954: The indicative LNG contract price rose to $9.33mmBtu: In news, GLNG is on track to add to the glut in Q3: Santos of Australia said that its

0

China BTFD

Cross-posted from Investing in Chinese Stocks. Another article, this time from China Finance Online (CNFOL), argues that property price increases will fade in the coming weeks. Developers remain skeptical of a major rebound, with many seeing govt intervention as helpful, but unable to reverse a market that has, in their view, permanently shifted, iFeng: 楼市一大信号证明房价不会大涨

1

China house price falls slow, slashes RRR

China’s March new home price data for March is out and is still falling at a good clip but the second derivative has improved. The annual fall is now down to 6.1%: But the pace of monthly falls has slowed a lot: We are at least now back into a rate of decline similar to past

1

US inflation remains soft

Markets appeared to take fright at US inflation Friday night but for no obvious reason. Headline CPI is above the Fed’s target but has been for months. More significant are the analytical measures, from the Cleveland Fed (chart from Calculated Risk): According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.2%

1

Links 20 April 2015

Global Macro / Markets / Investing: World Bank Projects Leave Trail of Misery Around Globe – Huffington Post How To Think Like A Trader – Kirk Report Explaining the dearth of private investment – VOX Not All Macro Models Failed to Predict the Crisis – multiplier-effect.org North America: Declining Desire to Work and Downward Trends

148

Weekend Links 18-19 April 2015

Now with added Gunnamatta … Global Macro / Markets / Investing: How The World Bank Broke Its Promise To Protect The Poor  – Huffington Post Oil slips below $64 as ample supplies weigh – Reuters Big-Bank Profit Engines Accelerate  – WSJ Why we need to rethink capitalism – TED Bonds beware as money catches fire

13

ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Markets in Asia have closed the week on a mixed note, with China continuing to march on and Australia and Japan under pressure amid. Behind the scenes the VIX (or volatility index) index is trading at 12.6% and testing low levels thematic of complacency, so it’s worth

15

Mike Smith keeps services hopium alive

By Leith van Onselen ANZ chief, Mike Smith, has delivered more hopium on why services exports could save Australia from the commodities bust. From The AFR: Services exports from Australia have already overtaken the minerals trade and have greater potential for long-term growth, a new study shows, providing an optimistic outlook for the economy despite

6

Big iron melts

BHP is down marginally today as oil soars but RIO is down more solidly at 1.6% and FMG is reversing yesterday’s delight down 5%. All told markets continue to grotesquely misprice the iron ore war but I am getting the sense that RIO is under growing pressure. Perhaps after its own forthcoming good news cost-cutting

33

If only Bill English was in charge of Australia

By Leith van Onselen New Zealand Finance Minister, Bill English, gave an interesting interview to ABC’s The Business last night, which provided a welcome contrast to the political imbeciles running Australia. Some key points from the interview include: The New Zealand Dollar is too high, particularly relative to Australia. The RBNZ’s macro-prudential controls on high

4

How FTAs are ripping-off content users

By Leith van Onselen Peter Drahos, professor in law at the Australian National University’s Regulatory Institutions Network and Professor of Intellectual Property at Queen Mary, London University, has written a well reasoned post about the hidden costs of including intellectual property clauses in so-called free trade agreements (FTAs). From The Canberra Times: Today, multinational companies

24

Property rentier collects its spoils

By Leith van Onselen Hot on the heels of Prime Minister, Tony Abbott’s gutless announcement that he won’t reform negative gearing, prime spokesman for the property industry, the Property Council of Australia (PCA), has released the following statement: Executive Director, Nick Proud, said providing certainty on the future of this tax measure will benefit housing

3

Macro Morning: Glass ceiling

By Chris Becker Stock markets are trying to make new highs with the US and Europe catching up to the Chinese bubble, but last night worries over the ongoing Greek saga and poor earnings results, housing starts and jobless claims in the US sent both back to reality. Recapping yesterday’s Asian session, it was all