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Gotti: Samarco to bury BHP

From Gotti: The BHP accounts reveal that the BHP carrying value of its Samarco shares is about $US1bn. That asset will need to be written off. And in 2014-15, Samarco contributed $US371m to BHP’s operating profit, compared to $607m the year before. This was a very profitable mine. …According to the BHP accounts, Samarco’s total


Domainfax goes all-in on fattened McGrath turkey

From Domainfax: On Tuesday December 7, after an oversubscribed $65 million IPO, McGrath will list. …The business trajectory attracted the investors. Mr McGrath, using the graph that shows how the business had grown regardless of the market, convinced them to look past the peak of the Sydney boom. …Privately, Mr McGrath has looked hard at Realogy, the $US6


COP21 comes, ready or not

The Paris Climate Change Conference, COP21, is underway. Martin Wolf has a nice backgrounder: Couldn’t have out that better myself. Meanwhile, Dumb and Dumber are thrashing it out at home, from The Australian: Malcolm Turnbull will hold open the prospect of increasing Aus­tralia’s carbon target as he joins other world leaders at today’s clim­ate change


Deloitte: $38 billion new Budget black hole

From Deloitte: Let’s cut to the chase.  You are about to read another very familiar story – one in which the Budget disappoints versus the latest official forecasts.  Budget deficits in the four years to 2018-19 look set to be $38 billion larger than expected. By far the bulk of that – 90% of it


Victorian Budget rides the housing bubble

By Leith van Onselen The Victorian Government on Friday released its 2015-16 budget update, which projected a $500 million upgrade in the Budget surplus on the back of strong stamp duty and land tax receipts, courtesy of the Melbourne housing bubble. The May Budget originally forecast a Budget surplus of $1.2 billion for 2015-16, however


Sydney auction clearances continue crashing

Core Logic-RP Data released its auction market report yesterday, which posted a slight fall in the preliminary national clearance rate driven by the ongoing slump in Sydney. The preliminary national auction clearance rate was 60.1%, down slightly from the 60.8% preliminary rate recorded last weekend, according to Core Logic-RP Data: Sydney’s preliminary clearance rate fell


Commercial property bubble meets a pin

Michael Pascoe had an excellent article on the weekend: Lang Walker knows a bit about property development and investment – he’s been doing it for the better part of 40 years and became a billionaire twice over in the process…If one thing has distinguished Walker, it’s been his ability to sell out at the right


BIS Shrapnel far too rosy on mining investment bust

By Leith van Onselen BIS Shrapnel has released a new report, Mining in Australia, which forecasts that Australian mining investment will fall a further 58% over the coming three years. From Peter Martin: Excluding oil and gas, mining investment had already halved since the peak, and would fall a further 40 per cent over the


Daily iron ore price update (miners trashed)

Here are the iron ore charts for November 27, 2015: The Tianjin benchmark iron ore price fell 10 cents to $43.50. Dalian also fell four points to 303 points after sinking further Friday but rebounding overnight. Singapore is plunging. The rebar bleed-out slowed to a trickle. Chinese port stocks rebound 675k tonnes to 86.75mt. In news,


Shanghai crashes as hope dies in China

Cross-posted from Investing in Chinese stocks. The mood has soured in the past couple of weeks and the Shanghai analog is entering the period when, if history keeps rhyming as before, the market is due to turn lower after a 6% drubbing on Friday: Stock market specific headlines are deteriorating: China Stock Bulls Hit Breaking


Links 30 November 2015

Global Macro / Markets / Investing: Half of Gold Output May Not Be ‘Viable’ as Price Sags: Randgold – Bloomberg In the shadow of quantitative easing, party like it is 1788 – FT Punish errant bankers – or we are doomed to repeat the past – The Independent Americas: America’s bipartisan illiberalism – The Week


Weekend Links 28-29 November, 2015

Port Phillip Heads China It’s Open Season on China’s Securities Firms as Probes Intensify – Bloomberg ‘Malicious short selling’ used as a weapon to attack metal short sellers – SCMP Mystery of the missing chairman: Guotai Junan case makes Western firms wary of Chinese bosses’ connections – SCMP Banks’ Total Value of Bad Loans Rises


ASX at the close

Angus Nicholson for Chris Weston, Chief Market Strategist at IG Markets The big drop in Chinese industrial profits plus the weakest CNY mid-point fix since 31 August appear to have set off a wave of selling in equity markets across Asia. The bigger concern is certainly the potential for China to steadily devalue the CNY.