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ASX at the close

Chris Weston, Chief Market Strategist at IG Markets Asian markets have fallen once again, although without quite the same ferocity we saw in yesterday’s bloodbath and there is some buying coming back into the Australian equity markets, presumably short covering. US traders did act with a calmer mindset yesterday, but price action was far from

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Govt partially deregulates car sales

By Leith van Onselen From The Guardian comes news that the Government has announced that it will deregulate new car sales, thereby permitting buyers to purchase new cars directly from overseas dealers: Legal restrictions will be removed to allow drivers to buy a new car once every two years, providing it is no more than

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Perth’s CBD desert

From the West Australian: Close to a quarter of the office space in Perth’s CBD is vacant and rents have almost halved, according to tenant advisory firm LPC Cresa, which said shrinking office requirements after the resources boom had left the city with an office surplus that could last for many years. The assessment, likely

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Trump, Sanders win New Hampshire

From the New York Times: Donald J. Trump and Senator Bernie Sanders of Vermont rocked the American political establishment on Tuesday night, harnessing working-class fury to surge to commanding victories in a New Hampshire primary that drew energetic turnout across the state. Mr. Trump, the wealthy businessman whose blunt language and outsider image has electrified

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Turnbull inhales on pot legalisation

By Leith van Onselen Prime Minister Malcolm Turnbull has taken the first step towards the legalisation of marijuana, introducing a national scheme into Parliament to licence medicinal cannabis growers. From The Canberra Times: Although medicinal cannabis is available for particular patient groups and clinical trials, it is currently illegal to grow and import most medicinal

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New home sales rebounded in December

By Leith van Onselen From the HIA comes the December new homes sales report, which posted a nice bounce and made up some ground on prior month’s falls: The HIA-ACI New Home Sales Report, a survey of Australia’s largest volume builders, showed a bounce back in December 2015 following three consecutive months of decline. “Total

10

Treasury head hoses ABS jobs numberwang

Treasury head John Fraser in the Senate this morning on global growth: “There is no clear path ahead…The volatility has been significant. Some would argue that the interest rate increase would be factor…others say it’s China, and others would… point to the weakness in commodity prices, which is far greater than people have been expecting,

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IMF calls for negative gearing curbs

By Leith van Onselen The International Monetary Fund (IMF) has released its 2015 Article IV consultation for New Zealand, which recommends the Government quarantine (“ring fence”) negative gearing losses so that they can only be claimed against property-related earnings, not unrelated wage/salary earnings [my emphasis]: Tax measures: The newly introduced measures to deter speculative investment

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Consumer sentiment surges!

From Bill Evans: The Westpac Melbourne Institute Index of Consumer Sentiment rose by 4.2% in February to 101.3 from 97.3 in January. The Index has now recovered all the ground it lost in January when it fell by 3.5%. The Index has now returned to a level (above 100) where optimists outnumber pessimists. This is

5

CBA bad debts begin to rise

From Watermark Funds Management’s investment via The Australian on the CBA result this morning: Cash earnings came in ahead of estimates “Cash earnings grew by 6% sequentially and 4% on the prior corresponding period and came in 1% ahead of consensus expectations. However, EPS was in line with expectations due to dilution from the capital raising last

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2012 Property Investor of Year goes bust

From Kate Moloney, 2012 Property Investor of the Year: + In 2012, at the age of 24, Matt and I were crowned Australia’s Property Investor the Year (Your Investment Property Magazine) click here to see + Three years later, if we were to sell our properties, we would still owe the banks about three million of dollars (not

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What is Andrew Robb trying to hide?

By Leith van Onselen The Greens have slammed Trade Minister for attempting to force the Trans-Pacific Partnership (TPP) through parliament without a thorough independent examination. From The Canberra Times: Mr Robb tabled the text of the TPP in Parliament on Tuesday, warning opponents of the deal that Australia had to sign it… Following protocol, Mr

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Greens offer Coalition pathway to super and property taxes reform

By Leith van Onselen I continue to be impressed by the Australian Greens under senator Richard Di Natale, who took over the leadership last May from Christine Milne. Under Di Natale, the Greens quickly changed track and supported the Government’s fuel excise re-indexation (opposed by Labor). The Greens then supported the Government’s Aged Pension reforms

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HIA swarms with negative gearing liars

By Leith van Onselen The other main housing rent-seeker, the Housing Industry Assocation (HIA), has emerged to lobby against changes to negative gearing, claiming once more that any such move would trash housing investment, force-up rents and prices, and destroy wealth creation. Below is the HIA’s media release combined with facts exposing their lies. The

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India warming up more iron ore mines

Slowly but surely the Indian iron ore self-destruction is reversing, from ET: Odisha is targeting a production of 70 mt of iron ore in 2015-16, with top miners pinning their hopes on restarting operations even as they await a final nod from the Supreme Court, which is slated to consider their appeal later this month.

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China throws more rescues at realty

Cross-posted from Investing in Chinese Stocks. How long can first-tier home prices rise? So asks the headline of this article originally from China Economic Net. Conclusion: Under improper regulation, if asked high prices can sustain long? You can not have normal thinking or analysis to judge, it can only be resigned. And this situation, inevitably the

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Links 10 February 2016

Global Macro / Markets / Investing: World’s Negative-Yielding Bond Pile Tops $7 Trillion: Chart – Bloomberg Global Bond Rally Near `Panic’ Level With Japan Yield Below Zero – Bloomberg Goldman Sachs Abandons Five of Six ’Top Trade’ Calls for 2016 – Bloomberg Investors flock to CDS amid fear over banks’ bonds – FT Corporate Bond