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Macro Afternoon

The overnight pullback on risk markets in the wake of the Trump “diplomacy” over North Korea has translated into similar moves here in Asia, although Japanese stocks fared better than expected as Yen weakened against USD throughout the session. The weaker USD is keeping commodities steady, including gold and the Aussie dollar. The Shanghai Composite is still

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China’s “social credit score” blocks 15m from travel

Your future is bleak, Australia, via the Dictator’s mouthpiece, The Global Times: A senior official argued that without due punishment, defaulters would only feel encouraged after it was reported China’s social credit system had blocked more than 11.14 million flights and 4.25 million high-speed train trips by the end of April. An improved social credit

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Chris Joye’s infinity ATM

Via our Chris today, whose royal commission objections are mounting towards jihad: Labor fundamentally undermined the integrity of the financial system by partially shifting responsibility for repaying debts from the borrower to the lender, which is insane. Now lenders, not borrowers, are liable for understanding borrowers’ financial circumstances and verifying whether they can service a

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Foley gets his “white flight” commuppance

Via The Australian comes the idiot: Mr Foley was forced to apologise over comments he made about “white flight” occurring in Sydney’s western suburbs on Thursday, which prompted widespread condemnation from both sides of politics. NSW Premier Gladys Berejiklian criticised Mr Foley in Thursday’s question time, describing his words as “divisive, offensive, dangerous and nasty”.

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Why homelessness is getting worse

By Leith van Onselen The ABC has released a report explaining why Australian homelessness is getting worse: Australia’s homelessness figures are going in the wrong direction, and housing experts warn we’re about to recommit to a failing policy. Last month’s census data revealed that after a long period of stability, homelessness in Australia has gone

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S11D disgorges

Via Creamers: Brazilian miner Vale expects iron-ore output at its premier S11D mine to reach 58-million tonnes this year, above an official forecast of 50-million to 55-million tonnes, a person familiar with the matter said. The expected increase is due mainly to selling more “canga,” or iron-ore with a higher grade of contaminants – along

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Pascometer redlines on cheap housing

I’m still trying to be nice but it’s getting harder. The post-Domainfax Michael Pascoe has red-lined on houses being cheap: This won’t go down well with the housing crisis brigade, but housing affordability has not gone through the roof. It’s actually been fairly stable for the past quarter century And to the extent that housing affordability

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Anatomy of an Auckland housing disaster

By Leith van Onselen You know Auckland’s housing market has hit peak stupid when despite a near record high average dwelling price of $1.05 million: And rampaging population growth: We are being told that Auckland’s dwelling values must continue to rise otherwise developers will go bust: House prices and those of commercial property projects will

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Leith van Onselen talks mass immigration on 2GB Radio

This morning I was interviewed by Radio 2GB’s Luke Grant discussing Labor Leader, Luke Foley’s, regrettable comments yesterday about “white flight” from Sydney owing to an influx of refugees (which I demolished yesterday). I also slam mainstream economists infatuation with endless growth, as well as the lunacy of recent calls to increase Australia’s immigration intake

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Another contractor lines up to sue Sydney’s Light Rail farce

By Leith van Onselen The infrastructure being built to fix the problems caused by mass immigration continues to pile on the pain for taxpayers in Queen Lucy Turnbull’s Sydney. Hot on the heels of Spanish contractor Acciona demanding an additional $200 million from taxpayers as compensation for delays caused by the NSW State Government relating to the Sydney

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Rich List reaches peak oligarchy

If you want an example of why the world’s rich are in deep trouble then look no further that today’s repulsive AFR Rich List write-up: It is Saturday night in late April at the luxurious Mar-a-Lago resort in the billionaires’ playground of West Palm Beach, Florida. Inside the dining room – a faithful replica of

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“Beijing Bob” whines about China diplomacy he derailed

Give us all a break, “Beijing Bob“: Angela Merkel is the leader of America’s most important ally. The differences between democratic, US-aligned Germany and Communist-ruled China are real. China’s cutting edge industries now challenge Germany’s lead in manufacturing. But today Angela Merkel is in China, to talk to its leaders in Beijing and to promote

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Australia’s worst nightmare is back…another global banking freeze

I’m sometimes skeptical of Ambrose Evans-Pritchard. His bearishness is so relentless and florid that it’s hard to keep up. But every so often he scribbles such a ripping piece that it is impossible to ignore. To wit, from The Telegraph comes Italexit: The EU’s gendarmes are now eyeing Italy’s rebel coalition with professional curiosity. This

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Coalition painted into corner on company tax cuts

By Leith van Onselen Th AFR’s Phillip Coorey has done a good job describing the conundrum facing the Turnbull Government with respect to its company tax cut policy: Inevitably, in the wake of this week’s events, there are murmurs among the Nationals and some others on the backbench to dump the cuts rather than fight

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Links 25 May 2018

Global Macro / Markets / Investing: Goldman Sachs made a staggering $200 million in one day as markets plunged – CNBC Netflix Is Now Worth More Than Comcast – Bloomberg The ‘suprasecular’ stagnation – VOX Here’s How Much Money You Need for Bankers to Think You’re Rich – Bloomberg M&A frenzy stokes fear of market

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Macro Afternoon

Trade deals are front and centre of worries on Asian markets today on the back of the Fed’s release of its latest minutes, which seem to be pushing out the June rate rise. Treasuries remain poised at the 3% yield level while the USD remains strong, stocks are mixed going into the European session. The Shanghai

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Airbnb delivers Melbourne party-towers!

By Leith van Onselen Another report has emerged about the conversion of Melbourne’s rental stock to short-term Airbnb holiday rentals: A new shimmering 63-storey, $300 million skyscraper that was meant to provide private residential accommodation to Melbourne’s booming inner city population has instead become a quasi-hotel with dozens of rooms listed by owners and investors

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Land-use restrictions drive-up Canadian housing costs

By Leith van Onselen The CD Howe Institute has released a new study on how excessive land-use restrictions and planning barriers are driving up the cost of Canadian housing: In any competitive market without barriers to entry, regardless of the product being sold, the overall market price should equal its marginal cost of production. The