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Joye fastened to ScoMo property teat

Via Chris Joye today: The widespread media consensus that Prime Minister Scott Morrison has “no agenda” is crap. Most critics do not see the agenda because they are projecting their own political prejudices. ScoMo’s agenda is about empowering individual exertion, aspiration and productivity through lower taxes, smaller government, balanced budgets and investments in infrastructure, education,


Dan Andrews under intense pressure to approve East-West Link

By Leith van Onselen Victorian Premier, Dan Andrews, is under assault on multiple fronts for refusing to allow the Morrison Government to build the controversial East-West Link, which was dumped by Andrews after the 2014 State Election. Federal Treasurer Josh Frydenberg has urged the Victorian Government to approve the East West Link toll road project,


Darwin reeling as US to ban Chinese surveillance tech

Oh no, at the NYT: The Trump administration is considering limits to a Chinese video surveillance giant’s ability to buy American technology, people familiar with the matter said, the latest attempt to counter Beijing’s global economic ambitions. The move would effectively place the company, Hikvision, on a United States blacklist. It also would mark the


Planning racket exposed as Sydney land speculators gamble on re-zoning

By Leith van Onselen A cabal of speculators that acquired swathes of land on Sydney’s lower north shore, in the anticipation of making a motza once the rezoned for high-rise development, are now sweating on State Government approval. From The Brisbane Times: Developers who have taken a half-billion-dollar gamble on the rezoning of suburban properties


Frydenberg colludes with APRA to water down Hayne

The Hayne Royal Commission is quickly disappearing in the rear view mirror, with Treasurer Josh Frydenberg meeting with senior APRA officials to craft the government’s response. From SBS News: Mr Frydenberg met with Australian Prudential Regulatory Authority deputy chairs Helen Rowell and John Lonsdale in Sydney, just days after the Morrison government was returned to


Highrise Harry ends discounts

Boom! At the ABC: Billionaire apartment developer Harry Triguboff could not hide his delight at the prospect of an interest rate cut in June and the re-elected Morrison Government’s planned help for first home buyers. The Reserve Bank has given its strongest hint yet that interest rates will fall, almost certainly at its June meeting.


Australian construction activity fell again in Q1

By Leith van Onselen The ABS has released data on the value of construction work done for the March quarter of 2019, which registered another 1.9% seasonally-adjusted decline in total construction activity over the quarter and a 6.0% decrease over the year: The result badly missed analysts’ expectations of no change (0.0% growth) in construction


So now we know what kills Aussie banks: sunlight

Over the past year there has an ongoing debate about Australia’s little financial crisis. It was the dramatic widening of bank-to-bank funding costs. Coats starting falling as the Hayne Royal Commission wound up. Westpac explained the spread compression then by observing an abundance of cash: Is the lack of a March “turn” a sign of things


Latham gets the last laugh

Chris Bowen via Domain today: “We need to remind ourselves how to talk to the base, which is not inner city,” Bowen says in an interview. “If you look at the election, wealthy areas swung to us and poorer areas swung away from us. “When you consider our agenda was fairly redistributive, that’s pretty extraordinary.


Defence orders marshmellows as gas disaster locks in

Via Matthew Stevens: The fate of Incitec Pivot’s gas-challenged Gibson Island urea plant near Brisbane looms as an early challenge for whomever our returning prime minister, Scott Morrison, gifts with the resources portfolio. …She called out that efforts to secure new gas supplies at a price low enough to re-secure the economics of the company’s


Property lobby demands dedicated housing minister

By Leith van Onselen The Property lobby has united in demanding the new Morrison Government introduce a dedicated Minister for Housing. From The AFR: Property developer and Rich Lister Nigel Satterley is leading a powerful industry lobby urging the triumphant Coalition to create a dedicated Federal Housing Minister… [Satterley] said a “full-time housing minister” was


Aussie leading index sinks

Down she goes, via Westpac: The six month annualised growth rate in the Westpac– Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, declined from –0.13% in March to –0.47% in April. The Index growth rate has been consistently negative over the


Perth property value losses plunge through 19%

By Leith van Onselen Yesterday, CoreLogic’s daily house price index revealed that Perth dwelling value declines have smashed through 19%: This is by far the biggest bust on record for Perth, with the current 19% decline far eclipsing prior price corrections, both in terms of size and duration: The quarterly pace of decline in Perth


Macro Morning

By Chris Becker  US/China trade tensions are subsiding this time, with US stocks lifting overnight alongside bond yields while the USD remained firm, not withstanding a spike due to the latest OECD Economic Outlook. Commodity prices remain relatively calm during this whole mess although gold is sitting on a monthly low. Yesterday saw Asian stock markets bounce


How to destroy ScoMo in eighteen months

Via the AFR: Scott Morrison’s shock win in the federal election may have been delivered by the “battlers” – non-university educated voters in lower income brackets – and Christians. ANU professor Ben Phillips found that electorates with a lower percentage of persons with bachelor degrees and income greater than $100,000, and a higher percentage of