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GDP explodes

Well, how about that! National Accounts for the March quarter are out and BOOM! A quarter on quarter increase of 1.3%. An annual increase of 4.3%. Now, the annual increase does overstate things to an extent, given it contains the rebound quarter from last year’s floods. But even so, if you cut a half point

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Bill Evans: more cuts to come

Australia’s best bank economist dissects the Statement and sees plenty more cuts in the pipeline. I agree. As expected by Westpac the Reserve Bank Board lowered the cash rate by 25bps to 3.5%. Relative to the statement in May there has been a series of observations around the world economy and the domestic economy that

1

Bets are off in Macau

On top of the already poor macro data from China that everyone watches, alternative indirect gauges of the Chinese economy, like electricity output, are clearly showing that the Chinese economy is close to hard landing, if not already in one. I have previously mentioned another indirect gauge: Macau gaming revenue.  The latest data shows that Macau

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Trading Week

So where have the markets gone this week? Past the daily noise and headlines, this weekly chart heavy post will examine the major markets (debt, commodities and currencies) with the Australian investor in mind. T’was a wild night on risk markets last night, with a disappointing set of macro data coming out, which validated Houses

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In praise of equity

The stock market fate of Facebook has focused attention on the state of the public equity markets. Already, the company is being sued for allegedly misleading investors about the state of its business. There is much hand wringing about the problems of being publicly listed — the onerous burden of regulation, the public scrutiny, the

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Melbourne property falls sharply in May

By Leith van Onselen RP Data-Rismark this morning released its daily home values index for 31 May, enabling us to calculate house price performance across Australia’s major capitals over the month. According to RP Data-Rismark, Australian capital city home values fell by -1.41% over the month, led by Melbourne, where prices crashed -2.66%, which is

3

DJ’s offers hope

DJ’s released its Q312 trading update this morning and said the following: 3Q12 Total Sales of $399.8 million – down 2.9% on 3Q11 3Q12 LFL Sales declined by 3.1% versus 3Q11 Rate of sales decline stabilised and is tracking broadly in line with 2Q12 The Company has made good progress in clearing excess inventory Best

1

China can kick the can

Exclusively from Michael Pettis’ newsletter. China, meanwhile, is also suffering from a lack of confidence although I think we are still in early enough stages that we remain on the right side of the credibility curve.  But perceptions have certainly changed a lot in the last few months. As recently as three years ago there

10

All eyes turn to Spain

The news from Europe was all Spanish overnight as the country continues to struggle to find traction on any plan that will lead it away from the need for external help: Spain backtracked on a plan to use government debt instead of cash to bail out Bankia, as Prime Minister Mariano Rajoy struggles to shore up the

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Australian dollar bounce?

As I write the Australian dollar is up 0.62% to 0.9819 after making a low last week around 0.9690. Indeed the Aussie has, ever so slightly, broken through the top of the hourly downtrend channel it has been in since the run toward 1.05 in late April. Now it’s only 6.30 on a Monday morning,

17

East coast energy shock

One of the slow time bombs in the Australian market is the probability of much higher gas prices on the east coast of Australia because of the effect of LNG exports. It has already happened on the west coast. Manufacturers have to pay prices for gas that are four to five times the artificially low

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Euro bonds at twenty paces

I was saying just last week that Europe was caught in 2011 deja vu and that it must be time for another summit. Looks like I was on money and this time it appears we are going to rehash euro bonds: French President François Hollande will put German Chancellor Angela Merkel under pressure at Wednesday’s EU summit

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The Perfect Indicator

by Chris Becker Amidst the market sell-off in recent weeks, there was an interesting piece of news from the world of motorsport, with MotoGP world champion Casey Stoner – at the ripe age of 26 – announcing his retirement at the end of this season. What does this have to do with anything? Well, I’m

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Trading Week – Market rout

By Greg McKenna deputising for Chris Becker who’ll be back next week So where have the markets gone this week? Past the daily noise and headlines, this weekly chart heavy post will examine the major markets (debt, commodities and currencies) with the Australian investor in mind. Yuk! What a week on global markets – the

4

A four punch knock down for US data?

Last week, in The US recovery is thinning, before the release of Friday’s Q1 GDP I wrote the following: We’re still waiting for the Dallas Fed (which slowed signs of slowing last month) but there are widely consistent themes here: slowing headline numbers, slowing new orders, rising employment numbers, rising input costs and inventories. In

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Europe’s lunatics rise

Back in December last year while discussing the ongoing woes of Europe, I suggested that the fiscal compact may never actually be enacted because attempts to do so would have such a disastrous outcome that European nations will inevitably give up. I also mentioned in February that one of the things that could potentially effect any

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Trading Week

So where have the markets gone this week? Past the daily noise and headlines, this weekly – very chart heavy – post will examine the major markets (debt, commodities and currencies) with the Australian investor in mind. Its a short week due to the Easter break, but let’s have a look at whats going on:

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Trading Week

So where have the markets gone this week? Past the daily noise and headlines, this weekly very chart heavy post will examine the major markets (debt, commodities and currencies) before analysing the Australian stock market – the ASX8 (top four banks and top four miners, plus a few others that raise their heads..) Its the

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Europe moving beyond the LTRO

So it appears, at least in the short term, that the ECB’s LTRO effect is starting to wear off as markets finally catch up on the story of the underlying economy’s of periphery Europe: Euro zone bond markets Thursday received their first jolt since the Greek debt exchange was clinched earlier this month as Italian and