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Ironically, CBA begs gubmint to force wage hikes

CBA is turning desperate. Following Ian Narev comes Michael Blythe: Australia’s biggest domestic economic risk is a “skewed consumer cycle” and the government may need to step in with a policy on wages, Commonwealth Bank of Australia chief economist Michael Blythe says. Normal wage growth is around 3.5 per cent per annum, according to the


Can Australia’s bubble central-planners land softly again?

It’s as obvious as the nose on your face that global markets are beginning to suspect that the Australian property bubble may burst. The reasons are equally clear: prices are stalling or falling; officials have labelled it a bubble; global interest rates are rising; other similar markets in NZ, the UK and Canada are rolling;


Affordable houses have completely vanished from Sydney

By Leith van Onselen Last month, CoreLogic released its Mapping the Market report for the June quarter, which showed the almost complete disappearance of affordable houses across Sydney: Sydney Houses: In June 2012, 21.3% of Sydney suburbs had a median house value of more than $1 million, by June 2017 55.7% of suburbs had a


Canberra gets a taste of East Coast population ponzi

By Leith van Onselen I couldn’t help but laugh when I read the following report whinging about rapid unplanned population growth in Canberra’s Gungahlin region, to the city’s north. From The ABC: Gungahlin is one of Australia’s fastest-growing regions, but a leading planning expert says a “disastrous” lack of suitable infrastructure has left the burgeoning


Asian LNG customers demand more discounts as we overpay

Via Reuters: After getting Qatar and Australia to lower gas price, India today pitched for flexible terms for LNG purchase including provision of pricing review, flexible take or pay and abolition of destination restriction clause. Speaking at the LNG Producer-Consumer Conference here, Oil Minister Dharmendra Pradhan said the global LNG market is undergoing a major


Daily iron ore price update (Xi splat)

Iron ore price charts for October 18, 2017: Tianjin benchmark was unchanged at $61.70. Paper cracked overnight. Steel fell a little. Xi Jinping appears to have disappointed Dalian.  Reuters has texture: Market participants are also watching the Communist Party congress with President Xi Jinping saying China’s campaign against corruption has achieved “overwhelming momentum” as the


Links 19 October 2017

Global Macro / Markets / Investing: When Doing Good Ends Badly for CEOs – WSJ Crypto venture firm Blockchain Capital is raising $150 million for two funds – CNBC Bernanke Adds Nuance to Independence Orthodoxy: Eco Pulse – Bloomberg Crypto Daytrippers – Bloomberg George Soros Transfers Billions to Open Society Foundations – NY Times If


Burgess: Sell China parliament to protect tourism

MB prodding appears to have tipped Rob Burgess over the edge on population: Pauline Hanson’s One Nation party continues to stoke fears that Australia is becoming “Asian-ised” (whatever that means), and Australian Conservative leader Cory Bernardi complains of the growing threat of “‘influencers’ bankrolled by the Chinese Communist Party”. The antidote to those scare-mongering views is that China’s


Higher income professionals haven’t yet abandoned suburbia

By Ross Elliott, cross-posted from The Pulse US based urbanist Richard Florida – once described as an “intellectual Rockstar” – shot to fame with his 2002 book The Creative Class. He was on a global speaking tour that took in many Australian cities, arguing that the secrets to economic development lay in attracting legions of


NSW Government tries to hide light rail white elephant

By Leith van Onselen This site has gone to great effort exposing the pitfalls of the ACT Light Rail Project. Late last year, secret NSW Government documents were released revealing that the Parramatta Light Rail Project – the centrepiece of the Government’s plans to cement Parramatta as Sydney’s second central business district, as well as


Foreign buyers abandon Aussie property

From the latest NAB Residential Property Survey comes some welcome news: The influence of foreign buyers in Australian property markets continued to lessen according to surveyed property professionals, suggesting that tighter conditions imposed on foreign buyers is still having an impact. In Q3, foreign buyers accounted for 10.2% of all new property purchases (10.4% in


Citi: Aussie housing bubble to hit trouble in 2019

Ebrahim Rahbari, Citi’s head of global macroeconomics: The day you finally have enough housing in Sydney is the day I wouldn’t want to be caught with a big mortgage. I think there is a real danger when certain developments have gone on for a long time, and in Australia in particular the combination of high


Mortgage arrears fall in cities, boom in regions

Via S&P: The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) fell to 1.10% in August from 1.17% in July, according to a recent report by S&P Global Ratings. The decline, which is not unusual because arrears typically have fallen in August for the past 10 years, was partly influenced by


Australian leading index slip slides away…

Via Westpac: • The six month annualised growth rate in the WestpacMelbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, slipped from –0.16% in August –0.21% in September. The growth rate remains negative pointing to below trend momentum and a sharp turnaround


Canadian housing entering “severe correction”

Via Bloomie: Canada’s banking regulator released final rules that will make it tougher for borrowers to take on uninsured mortgages, adding to a growing list of measures to rein in the nation’s housing markets. The Office of the Superintendent of Financial Institutions announced measures targeting borrowers in the uninsured segment of the mortgage market that has been responsible for


Former NZ PM becomes banker

Work for Merrill Lynch. Become PM. Do nothing about house prices. Ramp immigration. Sell your mansion to a Chinese investor. Then join the bank: ANZ has appointed former New Zealand Prime Minister John Key as chairman of ANZ New Zealand. He will succeed John Judge as chairman as he retires from the board of directors in January,


Labor to take its time on NEG

Quite rightly: “What’s very clear is that the government is scrambling. We have policy on the run. We have an energy policy being put together with strings and bandaids,” shadow treasurer Chris Bowen said Tuesday morning. “What is very clear and has been publicly confirmed by the Energy Security Board, is that this policy that