Links 14 August 2019

Global Macro / Markets / Investing:

Americas:

Europe:

Asia:

Trans-Tasman:

Comments

  1. … NEW ZEALAND …

    The day the Fonterra dream finally died … Bernard Hickey … Newsroom

    https://www.newsroom.co.nz/2019/08/13/752126/an-annus-horribilis-for-fonterra-farmers-59b-of-losses#

    Fonterra’s value has almost halved since its overseas expansion strategy imploded in early 2018. Now its new leaders have found yet more losses and look set to dismantle what remains of what many hoped would become a national champion. Bernard Hickey looks through the rubble.

    The dream is over, except for the final garage sale and the divvying up of the proceeds. … read more via hyperlink above …
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    Earlier post …

    https://www.macrobusiness.com.au/2019/08/links-13-august-2019/#comment-3410048

  2. … UNITED STATES …

    California’s housing affordability crisis intensifies … Candyd Mendoza … Mortgage Professionals America

    https://www.mpamag.com/news/californias-housing-affordability-crisis-intensifies-175099.aspx

    Home prices in California soared despite low mortgage interest rates, further reducing the affordability rate in the state during the second quarter.

    The percentage of homebuyers who could afford a median-priced, existing single-family home in California in Q2 2019 fell to 30% from 32% in Q1 2019, according to the California Association of Realtors’ Traditional Housing Affordability Index (HAI).

    CAR’s index reported that prospective buyers need a minimum annual income of $122,960 in order to qualify for a $608,660 median-priced, existing single-family home in the second quarter. … read more via hyperlink above …
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    … Earlier important Stuff NZ (Fairfax) article …

    The average home price in every American state – and what you get for your money | Marissa Perino | Stuff.co.nz

    https://www.stuff.co.nz/business/property/113894360/the-average-home-price-in-every-american-state–and-what-you-get-for-your-money?rm=m
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    2019 15th Annual Demographia International Housing Affordability Survey

    http://www.demographia.com/dhi.pdf

  3. … NEW ZEALAND …

    And what don’t we know ?

    Valuation shows ANZ’s Hisco mansion sale under by $4m | Stuff.co.nz

    https://www.stuff.co.nz/business/114989444/valuation-shows-anzs-hisco-mansion-sale-under-by-4m

    ANZ may have given former chief executive David Hisco’s wife a $4.1 million discount when it sold a house to her, a new valuation suggests. …

    … concluding …

    … Jilnaught Wong, professor of accounting at the University of Auckland, said the house sale looked “clearly” to be a related party transaction and should have been reported as such.

    Criminal and civil penalties are possible if its found ANZ directors, including Key, gave false or misleading statements to the Reserve Bank.

    ANZ has also been ordered to get two independent reviews, after the Reserve Bank asked for assurance that the bank “is operating in a prudent manner”. A spokesman said those were under way. “We are unable to comment on the detail of the reports at this stage. However, a summary of each report will be published once it has been received by the Reserve Bank.”

    The bank has been under pressure for months, with a severe reprimand by the Reserve Bank and calls for Key and Hisco to leave or be forced out.

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