Macro Afternoon

Its been a more upbeat mood here in Asia compared to overnight markets with everything outside China moving higher. Gold is trying to consolidate below $1500USD per ounce while the Aussie dollar has spiked following a rally in bank stocks as all eyes focus on the ECB’s upcoming meeting.

The Shanghai Composite is the exception to the bullish mood, falling 0.4% to close just on 3000 points while  the Hang Seng Index had a strong rally to close 1.6% higher at 27126 points, casting off any ideas of pausing from its well overbought status:

Japanese share markets continue to fly higher, helped by a weaker Yen the Nikkei 225 surging 1%  higher  to 21597 points making yet another new daily high. The USDJPY pair accelerated up to the 108 handle but looks like stalling just as the City opens:

The ASX200 is making up for lost time, limping forward by only 0.4% and taking back some of the previous losses as bank stocks drag everything along. The Australian dollar almost hit the 69 handle but has come back slightly, currently hovering at the 68.70 level and looking ready to have another go:

S&P and Eurostoxx futures are upbeat, with European stocks ready to move higher as the S&P500 four hourly chart shows some momentum building to get it back over the 3000 point level again:

The economic calendar has mainly secondary PPI and other prints from the US tonight, but watch out for the DOE oil inventory report as OPEC+ meets and ponders its existence.

Comments

  1. On the topic of people not buying cars, it makes 100% sense to buy used.
    For example I can find 3-4 AU Falcon’s for under $1000 on Facebook marketplace right now. Some have done more than 300,000 km’s. A friend of mine has an AU Falcon Ute and it’s never really given him any trouble despite 300,000+ Km’s on it.

    https://www.youtube.com/watch?v=g4H5WENtbco

    Not exactly a good car for Surry Hills in Sydney with it’s tight spaces and speed humps etc.. but if I was flat broke earning minimum wage, a perfectly acceptable car for getting around, especially on LPG.

      • Never really noticed the “stink” but it shouldn’t smell inside the car. Outside it will smell different to typical gasoline..just like E85 smells like sweet corn juice haha.

          • Well most AUs are getting on just fine with a patchy service history. Repairs on such cheap cars are optional anyway.

          • One has to factor in time loss and other additional costs with surprise breakdowns. I mean do I want to breakdown during rush hour or lose time at work just to save a few bucks upfront. Not to mention the rule of thumb with some of us was always to at least triple the original cost with repairs in mind. Would also need to lift the body up and do a thorough examination of the entire car let alone compression checks and diagnostics before jumping in to peal down the road.

            You know stuff is cheap for a reason sometimes …..

    • Hey Gav, I’ve got up to $5K to spend on a small cheap car for my son who will be going to uni next year.

      I was thinking a Corolla, or a 323 or maybe a Getz or similar Any suggestions, particularly on cars to avoid?

      • I’m not Gav but my equivalent was a Corolla, cheap to run and very reliable. Agree with Mazda too.

        General suggestion: avoid CVT automatics.

        That’s about all I’m good for.

      • Cat go wrong with a Toyata Corolla. I find any Japanese compact to be pretty good. My Jimny was super reliable, but they have gone up in value lately. So hard to get 1 for $5k. It was a good city car / easy to park and a good utility car. Been thinking about getting another.

      • Recently bought an auto ’08 Mazda 3 for $4500 – high, but mainly highway mileage & regularly serviced – a good buy, but have to be choosy once under ~$5k, as that’s the new ‘bobm’ price I’m told. Mechanic reckons auto’s don’t get flogged like manuals so are a safer bet….. You really can’t go past Jap, Mazda, Toyata or Honda – or later Hyundai’s. But they’re not new, so always keep a bit in your kick for that something you’ll miss. Skip’s right, you do have to scrutineer intensely, & if you want reliability you might need to look higher, but for $1k probably getting a bit anal, those Falcons have lazy motors that last forever…… & 90’s cars were made before standards started dropping & all the electronics took over.

  2. … UNITED STATES …

    Trump pushing for major crackdown on homeless camps in California, with aides discussing moving residents to government-backed facilities – The Washington Post
    … behind paywall …
    … via Zerohedge …

    https://www.washingtonpost.com/business/2019/09/10/trump-pushing-major-crackdown-homeless-camps-california-with-aides-discussing-moving-residents-government-backed-facilities/

    … extract …

    … A White House spokesman said Trump signed an executive order in June that pertained to affordable housing regulations, and that the administration is continuing to seek new solutions for homelessness. Trump’s executive order created a new White House council on eliminating “regulatory barriers” that White House officials believe increase the cost of building new housing. Developers have said these restrictions drive up prices on housing and limit the supply.

    “Like many Americans, the president has taken notice of the homelessness crisis, particularly in cities and states where the liberal policies are combining to dramatically increase poverty and public health risks,” said Judd Deere, a White House spokesman. “President Trump has directed his team to go further and develop a range of policy options for consideration to deal with this tragedy.” … read more via hyperlink above …
    .
    .
    … Guides to problem United States Cities and States …

    … What is being learned from the successful ones ? …

    2019 15th Annual Demographia International Housing Affordability Survey

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

    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

      • Its got nothing to do with like or feeling Gav, its more the Jones town thingy about his disembodied ideological wankery which does not stand up to basic logic or empirical standards E.g. Agnotology which makes the IPA look lucid.

      • As far as Trump goes a simple bio should suffice, I mean look at Epstein, no one did their basic ethical home work and only looked at the Bernays PR …. hay I rich …. duh = smart guy …

        Workers rights, environmental, long history of corruption, slum lord family, gentrification operative [red lining] and a whole oodle of other other high ethical standard.

        • Shifty Politician

          Dude – Clinton was Epsteins best mate and flew on his private jet 26 times – including multiple times with CIA.

          Trump even directed the media to check the flight records.

          Trump was photographed once at an event with Epstein and disavowed all relationships with him decades ago.

          The left wing media in the United States is the most corrupt absurd pantomime on this planet right now – regurgitating anything from it is a deep mistake.

          Absurdly ill-informed.

          • I said ethical dramas during the entire timeline of Trumps life and business dealings which are quite clear and in the public domain. Dragging the Clintons into it does not change those facts one bit, especially his treatment of labour and blind eye to corruption, not to mention his cut the rates perspective which would seem to be contra to what some CTM sorts get their nickers in a wad about ….. attacking savers … chortle which one is it …..

    • Are there any Uber drivers who aren’t Indians? “Studying” accounting?

      And if you’re a 22 year old woman vomiting drunkenly on the side of the road..well…you may end up in a world of hurt. I know I know, victim blaming etc etc. But everybody knows there are goblins out there. That’s why we lock our cars in car parks.

      Yes, we should be able to do whatever we like wherever we like, but we can’t, because bad people exist. The world is not perfect, and assuming that it is may result in you, man or woman, waking up at 5am to being raped by Gupta, Anand, Pajit and his mates.

  3. I keep being asked to log in to mb all the time on my android 7 Chrome browser. Really annoying. What’s worse is video ads on my phone while reading mb. Highly irritating. Can anyone recommend me an Android browser for mb?

    • Maybe. I suspect the AFP is about to be caught in the same kind of schism / civil war that we hear about the fbi going through.

      All of our military / intelligence agencies have been raising alarms for years about China. The most obvious of their victories was Huwawei being banned from 5G.

      The AFP is the red headed stepchild of our intelligence services. Part of the afp desperately want to be part of the big boys club. Others are happy to be the brown shirts for scummo and Dutton. I hope that the former wins out in terms of ongoing influence over the agency.

      • it’ll go two ways. they either follow the path you propose, which is likely if there is still a whole bunch of PE shareholders and some of the original founders in executive positions

        the other is that they will take a big sharp scalpel to their operation and HQ costs and find billions of dollars of opex savings, and be able to remain a profitable business even with higher staff costs

        note: i’m not suggesting these are equally likely outcomes

    • ErmingtonPlumbingMEMBER

      Why should any corporate middle man be gouging public transport drivers and their customers.
      The old taxi plate owners with 20 plates were no better.
      Uber and its clones are nothing more than simple booking and vehicle tracking systems using mobile phone networks.

      A single, regulated Government owned system run at cost or for free where registered owner operators, the people actually doing all the work of driving Cnts from A to B are the only ones who should be making money out of this industry.
      That would be is a proper “Left wing” policy/system I could vote for.

      Pitty the Corporate sector is constantly trying to undermine real Democratic decision making and Accountabilitity

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