David Llewellyn-Smith


When to the buy the gold dip

Via ANZ: If global growth concerns continue to push up the USD, like we have seen this week, we could see some near-term headwinds for the precious metal Importantly though, if U.S. growth concerns result in significant policy adjustments by the Fed to help the economy, such as negative interest rates or even monetary financing,


RBA alumnus, Tulip, backs Keating’s demolition

Peter Tulip sticking the boot in: I’m quoted agreeing with Paul Keating. The RBA’s culture of timidity can be attributed to the Board being composed mainly of non-economists.https://t.co/O8mgnrc0wo — Peter Tulip (@peter_tulip) September 23, 2020 I agree with @TheKouk. The RBA has persistently failed to meet its statutory targets. As Paul Keating says, this is


Brace for JobKeeper “bloodbath”

Via News: Aussie employment relations expert Natasha Hawker, who told news.com.au JobKeeper 2.0, which is now just days away, would leave employees and staff exposed to a redundancy “bloodbath”. …She predicted that would lead to a massive spike in redundancies – and with it, unfair dismissal claims. “For many businesses, especially smaller businesses for whom


Let property prices burn!

The newly reformed Jessica Irvine is on the case again today with desperate attempts to restore house prices: At some point, “zombie” firms and jobs – kept alive only by regular transfusions of government support – must be shot in the head. CBD cafes, travel agents, airline workers, traditional storefront retailers: how many of these


RBA sockpuppet: No cut coming

Via RBA sockpuppet Terry McCrann today: Westpac’s chief economist Bill Evans has joined NAB’s Alan Oster in predicting a rate cut from the Reserve Bank at its next meeting Tuesday week. I beg to disagree. There is no good reason for the RBA to make such an – essentially symbolic or ‘tidying up’ – cut;


Keating’s RBA demolition is Morrison’s chance to bone Deflation Phil

Via the ABC: Paul Keating has accused the Reserve Bank of conservatism, laziness and failing to do what is necessary to head off the worst of the coronavirus-induced economic crisis. In a letter distributed to the media, the former prime minister said the RBA should be funding the “mountainous sums” of government spending required to


Should banks make grab for early super?

Via APRA in a letter to ADIs: APRA has received and completed its review of all ADI comprehensive plans for the assessment and management of loans with repayment deferrals, provided in response to APRA’s 9 July letter to all ADIs. Where applicable, any entity-specific feedback, or clarifying questions have been facilitated by APRA’s supervisory teams. APRA acknowledges


Victoria to accelerate reopening

Via News: Daniel Andrews has just confirmed for the first time that Victoria’s next easing of restrictions on Sunday will go further than the original road map. With case numbers dropping, Mr Andrews promised a “significant announcement” on Sunday and he was asked this morning whether he was considering going further than originally planned with


COVID-19 vaccine credibility collapsing

It’s not the fruitloop anti-vaxxers fault, either. It’s governments. Via Bloomberg: The Covid-19 vaccine trial designed by Pfizer Inc. and its German partner BioNTech SE may allow them to find whether their shot works before their fastest-moving rivals. The companies plan a first look after a mere 32 coronavirus infections have accumulated in their massive


Empty Chair agrees to Morrison gas joke

Via The Fake Left: The draft reads: “Labor supports the responsible development of Australia’s gas reserves, subject to environmental approvals to ensure communities’ concerns are addressed through rigorous science-based processes, including gas from coal seams, shale and tight gas formations.” It says a future Labor government would ensure “gas development is environmentally sustainable, science-based and


NAB: RBA cut and launch of QE imminent

Via Alan Oster at NAB: The RBA continues to signal further monetary easing is likely. Deputy Governor Debelle in a speech titled The Australian Economy and Monetary Policy, “outline[d] [the] possibilities for further monetary policy action should the Reserve Bank Board decide that is warranted” and concluded that “the [RBA] Board will continue to assess


Flash PMI weak again

Via Markit (CBA no longer): Latest PMI data indicated a recovery in business activity across Australia at the end of the third quarter after containment measures were loosened in parts of the country. This followed a decline in August. The upturn was driven by a further rise in manufacturing output, while signs of stabilisation were


Australian dollar clubbed despite risk rebound

DXY has broken out to the upside: The Australian dollar was clubbed: Gold looks shaky: Oil too: Base metals remain mixed: Miners missed out: EM stocks too: Junk is still screeching: Stocks jumped back above 50DMAs: Westpac has the wrap: Event Wrap US August existing home sales posted a strong gain of +2.4%m/m to 6million (annualised), meeting expectations,


Lunatic RBA discovers quantitiave easing drops Australian dollar

Only a decade late, the Lunatic RBA has discovered that unconventional monetary policy will lower the Australian dollar and aid recovery: see chart 7 espeically. Abstract The cash rate is currently at its effective lower bound and the Reserve Bank has put in place a suite of alternative monetary policy tools. This article uses the


Coalition pushes patch-up job of NBN it trashed

Via ZDNET: The company responsible for the National Broadband Network (NBN) announced on Tuesday it was spending AU$700 million to create 240 “business fibre zones” that will cover 700,000 business premises. Being part of a zone will allow businesses to get a full fibre Enterprise Ethernet connection, as well as reduced rates and connection fees.