Chris Becker

11

Chart of the Day: Apple

To start the new week off, here are two charts that sum up some of Apple Inc (AAPL) dominance, from Zero Hedge. First, the amount of cash Apple has built up, paid taxes on and is now is sitting on, with no debt, compared to others in the S&P500 And Apple’s product margins (and the

9

Chart of the Week

As you read this I’ll be moving house, upgrading from 2nd class rental scum to 1st class mortgage slave, whilst battling the flu and unskilled Queensland drivers meandering down the Bruce Highway. This weekly post will actually contain several charts, and to start with, a curious observation of GDP per capita correlated to a belief

1

Next Week: CPI rising

With another week of debt crises passing, what’s coming up next week in terms of data, announcements and the like? Locally, everyone will be watching the ABS CPI (nee inflation) release on Wednesday, and overseas, all eyes on another round of earnings results for US companies, GDP and Chicago PMI. A busy week for data.

3

Trading Day: 22nd July

The S&P/ASX 200 jumped higher this morning and is now 38 points or 0.84% higher at 4594 points. Other Asian markets are up higher, with the Nikkei 225 up 0.9% to 10095 points, and the Hang Seng up strongly 1.35% at 22255 points. Other risk assets are mixed, with the AUD up strongly at 1.0825

29

Households and disleveraging

The RBA released its quarterly Household Finances ratios (B21 XLS table) yesterday, which highlights the following ratios going back to March 1977 (in most forms): Debt to Assets Housing debt to Housing Assets Debt to Disposable Income (total, housing and owner occupier) Assets to Disposable Income Interest Payments to disposable income Instead of waiting for

2

Chart of the Day

If they knew about risk, what would keep bank managers up at night? Given that one of their own has now stated that banks should be treated like utilities, a restructuring of Tier 1 capital might see this ratio drop to more non-Minsky stable levels (say 3:1 or 2:1), and bank profitability (based on Return

4

Trading Day: risk back on?

The S&P/ASX 200 opened higher this morning and built on those gains up over 0.5% before falling sharply just after midday – possibly due to news about the fall in Chinese industrial activity. The market is now 22 points off its intraday high, at 4554 points, only 5 points up on yesterday. Other Asian markets

1

Chart of the Day

Following on from Bullion Baron’s chart of house prices in gold, here’s an interesting correlation (and yes, I know correlation is not necessarily causation) to ponder. First, the change in house prices in major US cities (from the Case Shiller price index): Then, the gold price plotted against the Washington DC:Detroit house price ratio: I

0

Trading Day: 20th July

The S&P/ASX 200 jumped over 1% on the open, and has built on those gains, rising a total of 1.61% or 73 points to 4541 points. Other Asian markets are all up, with the Nikkei 225 up 1.34% at 10022 points, and the Hang Seng steady at 21,915 points. Other risk assets are mixed, with

13

Woolworths sales up 4.7%

Woolworths Limited (WOW) released their full year sales results (end of June 2011) today and it makes for interesting reading. The headline number is an increase of 4.7% in nominal terms on last year sales ($54.1 billion, up $2.4 billion). That’s an impressive result considering the flat line in other retail spending, as highlighted by

21

Chart of the Day

For todays chart(s), the Bullion Baron has plotted house price data, but priced in gold and silver (in Australian dollars), over Melbourne, Sydney and Brisbane houses (using Residex data). The results are interesting, to say the least!

2

Trading Day: 19th July

It’s deja vu all over again – the S&P/ASX 200 fell slightly on the open, falling slightly below the June lows, before rebounding and is now steady just after midday at 4470 points. Other Asian markets are all down, with the Nikkei 225 off 0.71% at 9903 points, and the Hang Seng down 0.28% at

28

Where to for Gold?

Time for another update, with the latest surge above $1600 USD per ounce last night. As I mentioned briefly in my last update, where to for gold? First a quick recap – here is the current price activity within the context of a major, long term bull market. And here we are today (using daily

7

Trading Day: 18th July

The S&P/ASX 200 fell over 20 points on the open, reaching the low experience in late June, before rebounding and is now steady just after midday to 4475 points. Other Asian markets are up, with the Nikkei 225 up 0.39% at 9974 points, and the Hang Seng up 0.54% at 21,993 points. Other risk assets

6

Chart of the Week

From Avid Chartist, is a great comparison of the broad US share market index, the S&P500 and the Aussie 200 – the S&P/ASX200, but both priced in USD. As I remarked about diversification recently, it’s not much chop if correlation across risk markets is 1.0. As an Aussie, I have been a little disheartened that

1

Next week: US earnings and RBA

With the full weight of the Labor Government carbon price (tax/permit/whatever) policy announced, ructions in Italy and Greece and the US dithering over a paltry trillion bucks or so, what’s coming up next week in terms of data, announcements and the like? (Black Swans aside…) Locally, everyone will be dissecting the RBA’s Board minutes on

1

Trading Day: 15th July

The S&P/ASX 200 fell again on the open and has stabilised, now 0.38% or 17 points lower just after midday to 4473 points. Other Asian markets are mixed, with the Nikkei 225 up 0.25% at 9960 points, and the Hang Seng down 0.37% at 21,858 points. Other risk assets are also mixed, with the AUD

8

Trading Day: 14th July

The S&P/ASX 200 fell slightly on the open, after digesting QE-easiness from overnight markets. The market has fallen further and is now 0.57% or 25 points lower just after midday to 4489 points. Other Asian markets are also down slightly, with the Nikkei 225 down 0.37% at 9926 points, and the Hang Seng down 0.22%

2

Trading Day: 13th July

The S&P/ASX 200 jumped slightly on the open, after digesting a poor performance of overnight equity markets. The market is now .47% or 21 points higher just after midday to 4516 points. Other Asian markets have also up slightly, with the Nikkei 225 steady at 9926 points, and the Hang Seng up 1% at 21,882

23

The rampaging golden bull

With gold almost rising to a new all time high in USD per ounce (Europeans get that tag for today) it’s time for another close look at the shiny metal. This will be a technical and chart heavy look at gold from a fractal viewpoint – i.e from the very long term (secular), then long

6

Trading Day: the sell off continues

The S&P/ASX 200 slumped again on the open, from the very poor performance of overnight equity markets. The market is now 1.7% or 77 points lower just after midday to 4505 points. Other Asian markets have similar losses, with the Nikkei 225 down 1.5% at 9914 points, and the Hang Seng down 1.75% at 21,957

8

Trading Day: 11th July

The S&P/ASX 200 slumped on the open, digesting the very poor US unemployment numbers on Friday, and the carbon pricing announcement yesterday. The market is now 1.3% or 60 points lower just after midday. Other Asian markets have smaller losses, with the Nikkei 225 down 0.5% at 10089 points, and the Hang Seng up down

13

Renewable hotties

With the announcement of a Carbon Pricing policy by the Government recently, combined with the formation of ARENA, a $3.2 billion agency to consolidate renewable energy industry support and given that the purpose of MacroBusiness is to give you the bigger picture, here is a (non-exhaustive) list and short summaries of renewable energy companies that

0

Trading Day: 8th July

The S&P/ASX 200 opened higher and has built on these gains from very positive leads from US overnight, and now after midday is up 47 points or 1% to 4652 points. Other Asian markets have similar gains, with the Nikkei 225 up 1% at 10170 points, and the Hang Seng up 1.17% at 22,794 points.

1

Next week’s data – Housing finance to dominate

With the first week of the new financial year over, we stumble into a new round of announcements and data releases to digest, analyse and consider and move towards the next corporate earnings season. The big kahuna for next week will be the Labor Government/Green Party announcement on a carbon price policy on Sunday. Here’s

27

Links July 8: US jobs figures up (updated)

Market Update: IGMarkets Up: Risk basically – Dow, NASDAQ, Gold, Oil, Euro stocks, CRB Index, AUD Down: Bonds, USD Sovereign contagion: Ireland, Portugal, Spain, Italy, Belgium, Greece US companies add 157,000 workers: Bloomberg But US confidence declines: Bloomberg And a better look behind the numbers: Mish and Dshort.com Gold stocks better than gold? Reuters Not

15

Charting the RBA

The RBA has released its monthly Chart Pack and like last month’s release, I’m going to have a look at this impressive data set for MacroBusiness readers. A warning, its chart heavy (obviously). The Chart Pack is divided into 16 categories, but let’s concentrate on a few, looking first at the economic “god” of GDP

0

Trading Day – 7th July

The S&P/ASX 200 opened lower and remained low until the ABS unemployment figures were released at 11.30, and now after midday is up slightly, 2 points or 0.05% to 4607 points. Other Asian markets are mixed, with the Nikkei 225 losing 0.1% at 10072 points, and the Hang Seng up 0.4% at 22,599 points. Other

27

Unemployment steady at 4.9%

The ABS has just released the monthly Labour Force Survey results for June. From the media release: The ABS reported the number of people employed increased by 23,400 to 11,455,200 in June. The increase in employment was driven by an increase in full-time employment, which was up by 59,000 people, three quarters of whom were

0

Trading Day 6th July

The S&P/ASX 200 opened slightly lower and has remained steady throughout the trading day and is right on 4600 points just after midday after weak leads from Europe and the US overnight. Other Asian markets are also mixed, with the Nikkei 225 up 0.15% at 9988 points, and the Hang Seng down 0.4% at 22,656