Houses and Holes


Aussie bonds explode as RBA emergency rates to get emergencier

Wohohoho! Record low yields everywhere as RBA rate cuts are now inevitable: Short end rates have inverted more deeply but the long has steepened: Yield spreads to the US are forging back in time: Not sure my rising AUD (even short term) is going to hold up with this kind of black hole sucking at


UBS: NAB to cut dividend, sell it

Via UBS’s excellent Jonathon Mott: NAB announced on Thursday that it will take an additional $749m pre-tax charge for increased provisions related to its customer remediation program, 91% of which is wealth related and the remainder banking…Importantly, NAB is yet to provide for customer refunds related to aligned advisers. NAB has the highest number of


Scummo scare campaign #4573

He has no plan and no policies beyond the status quo but what he does have is fear and lot’s of it. We’ve so far had: a new flood of boats scare; closing tax rorts as tax hikes scare for franking credits and negative gearing; recession scare; carbon price scare, and today we can add


How the Coalition wrecked the NBN

Via the ABC: In 2009, the then Labor government promised a fast National Broadband Network (NBN) with optical fibre cables direct to most homes and businesses. Instead, we’ve ended up with a mix of technologies including optical fibre, copper wires, Hybrid Fibre Coaxial (HFC), fixed wireless and satellite. Every year the amount of internet data


Can “make Australia stupid again” save Scummo?

The Australian is excited: Scott Morrison is on the verge of securing a preference deal with Clive Palmer that would all but guarantee the Queensland billionaire a Senate spot and help ring-fence marginal seats the Coalition must hold to retain government. Under the deal being finalised, Mr Palmer’s United Australia Party would be placed ahead


Abbottalypse Warringah

Via Crikey: Two polls from Warringah are in public circulation, both conducted by uComms/ReachTEL for GetUp! The first came in October, and found over half the electorate’s voters were receptive to the idea of supporting an independent; the second, conducted in February shortly after Zali Steggall entered the race, credited her with a thumping lead of 57-43.


NAB joins lending standards crackdown

The last of the major four banks has joined the credit standards crunch, NAB via AFR: …From next Monday it will introduce a debt-to-income ratio to improve understanding of the borrowers’ full financial circumstances by considering existing long- and short-term debt commitments. Total debt may consist of a new loan limit, existing home loans, lines


Tesla launches robo-taxi car and oil destroyer

Via BI: Tesla is all-in on its plans to take over the ride-hailing industry. On Monday, CEO Elon Musk revealed the company’s plans to compete with incumbents like Uber and Lyft with the company’s strategy for an autonomous ride-hailing fleet. Robo-taxis are essentially any Tesla vehicle with autonomous-driving functionality. To turn a Tesla into a


Goldman: Aussie dollar to rise

I hate agreeing with Goldman, especially on Australia, where it has been horribly wrong for years (being far too bullish). To be honest, the cross-over with mine and the GS view is minimal. The RBA is going to cut. And that will pressure the AUD. But I do agree that the AUD has a good


Weak AUD, strong bonds trigger ASX gains

The Aussie dollar is soft this morning: Bonds are well bid on the approach of widely expected weak CPI: Which has helped push XJO to 2019 highs: Dalian is soft: Big Iron strong despite broker downgrades: Big Gas  is soaring with oil and cartel east especially strong on the news of Labor’s Beetaloo pipeline play:


Coalition of corruption sinks into filth

Every day it’s a steady drumbeat of dodgy. Via The Australian: The Morrison government is making a direct election pitch to mortgage brokers, telling them Labor will hit their industry and “accelerate the slowdown” in the housing market. The letter sent to mortgage brokers, and obtained by The Australian, was signed by Prime Minister Scott


CBA jobsmageddon under spotlight as credit chokes

Via Banking Day: Fact and exaggeration over the extent of branch closures and job cuts at Commonwealth Bank will be flushed out before the Fair Work Commission. The Finance Sector Union yesterday lodged a dispute with the FWC, which will drag CBA’s bank’s plans or lack of them into the public eye early next month.


Betting markets give LNP a bit more chance

Via Mark the Ballot: Interestingly, the odds for the Coalition have improved slightly since the election was called. This morning they stand as follows. The odds charts follow. And the implied Coalition win probabilities are as follows. The individual seat markets provide a window on how punters think the election race is progressing. At the


Bob Carr needs lessons in economics and power

Some good news for Australian sovereignty under Labor, via Domain: Labor was briefed on the government’s decision last year. Labor sources, speaking on the condition of anonymity to discuss sensitive policy matters, said the advice from security agencies’ is unequivocal and there was no appetite to review the ban. One source said the evidence that


US approves enormous new LNG projects

It’s something to behold, via Bloomie: Tellurian Inc.’s proposed $28 billion Driftwood terminal in Louisiana and Sempra Energy’s Port Arthur LNG project in Texas were cleared by the Federal Energy Regulatory Commission in a 3-1 vote in Washington, with Democratic Commissioner Richard Glick dissenting. The approvals followed a breakthrough at the commission, which had been