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How to eliminate poverty

For years Australian policy makers have grappled with ways to eliminate poverty. Then the coronavirus came along and they managed, for a short time, to eliminate poverty by accident. In response to the pandemic, the federal government temporarily doubled the JobSeeker unemployment allowance via the $550 a fortnight Coronavirus Supplement, and this raised the benefit

Latest posts

13

Telstra steals NBN’s lunch

The first auction of 5G spectrum will be undertaken in March, with each bidder to be given the opportunity to buy up to one gigahertz of spectrum. Telstra head of networks Nikos Katinakis says that one of the telco’s first uses for the spectrum it intends to purchase will be for 5G fixed wireless products

6

Macro Morning

It was all set to be a clear path into 2021 with Asian and European stock markets doing well, as Wall Street lost confidence overnight in the wake of the UK virus lockdown and uncertainty around the US election (both presidential and upcoming Georgian senate races). This should prove a big headwind for stocks today

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Too risky to bring back students and reboot immigration

It is hard to believe that only one month ago the NSW Government hatched a treasonous plan to reserve one-third of the state’s hotel quarantine places for international students to be flown into Australia on chartered flights and have their quarantine costs paid for by universities: The NSW government is taking a plan to national cabinet

12

Daily iron ore price update (China squeeze)

The iron ore complex is taking it a little more easy into the new calendar year with seaborne prices and Dalian futures lifting on Monday, as firm demand in steel and positive sentiment after the New Year holiday continued: The Chinese are starting to get real about diversifying away from near total reliance on Australian

39

Aussie universities to plunge down rankings. So what?

Australian universities earned over $7 billion in student fees from China in 2019, with outgoing Australian Catholic University vice-chancellor Greg Craven describing the sector’s reliance on Chinese markets as being like a “drug addiction”. Craven says the big universities will have to accept that their budgets will never be as big as they were before

22

Sydney and Melbourne apartment rents hammered

CoreLogic’s December housing market report, released yesterday, included the below interesting chart showing the monumental collapse in Melbourne and Sydney apartment rents following the COVID-19 induced collapse in immigration: According to CoreLogic: …weak demand and high supply has driven a sharp drop in rents. Demand for inner city unit rentals has been significantly impacted by

8

Links 5 January 2021

Global Macro / Markets / Investing: It Wasn’t Just The Pandemic: Oil’s Terrible, No Good, Very Bad Year – NPR The Work From Home Trend Is Going To Accelerate in 2021, Says Aquent CEO – Quora After golden year for precious metals, silver set to shine in 2021 – Reuters More Than 12 Million Shots

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Macro Afternoon

A relatively mixed first day of trading in 2021 here in Asia with Japanese stock markets pulling back as Yen surges, while the rest of the region saw good moves higher across stocks and other risk assets. The big non-suprise (?) has been epic upside volatility in Bitcoin, which launched over 10% higher to be

41

Franking credit reform dead, buried cremated

Labor’s proposed reforms to franking credits, which were taken to the 2019 federal election, were officially scrapped by leader Anthony Albanese over the weekend: Federal Opposition Leader Anthony Albanese has dumped Labor’s policy to overhaul franking credits… The Opposition Leader said the policy had distracted voters from the party’s core messages… The Coalition targeted the

27

High-rise “slums” are symptoms of mass immigration

The SMH’s Elizabeth Farrelly – a former Sydney Councillor – has penned another article decrying the proliferation of low quality “slum” high-rise apartments across her beloved Sydney: I love cities, especially Sydney, and especially their ancient inner cores. I support density and renewal. But not like this. Even by comparison with the seventies, this new

22

NSW holds the line in COVID battle

Australia recorded only 3 new locally transmitted cases of COVID-19 overnight, with another 13 cases internationally acquired in hotel quarantine: All three local cases were recorded in Victoria, with NSW thankfully recording no new local COVID cases – the first time it has done so since 15 December: NSW recorded no new locally acquired cases

5

CoreLogic: Housing demand running well ahead of supply

CoreLogic’s December housing report, released today, contains interesting data showing the extent to which market housing demand is running well ahead of supply, which is helping to fuel rising prices: Low inventory levels have been a feature of the Australian housing market through 2020. Although the number of new listings surged higher through spring and

4

Macro Morning

And we’re back for 2021 with risk markets really loving the Christmas/New Year break as US stocks go to new record highs, pushing up other risk assets along the way. The fly in the ointment of course was Brexit, with European and non-European bourses (aka FTSE) not having a sterling (sic) a time over the

36

Former Productivity Tsar shreds ‘Big Australia’ policy

Over the Christmas break, The Australian’s Tom Dusevic published a terrific article entitled “Does the pandemic mean the end of Big Australia?”, which carefully unpicked Australia’s mass immigration ‘Big Australia’ policy, which has been in effect since the early 2000s. In this article, Dusevic describes the fault-lines in the population debate. On one side, are

4

Daily iron ore price update (moderation)

The New Year is here and the speculative fest that is the iron ore complex continues to deliver, although the Tianjin spot price did waver over the Christmas break, falling more than 3% to be at its lowest since mid December: It has to be remembered that the most active iron ore futures on the

39

Links 4 January 2021

Global Macro / Markets / Investing: After golden year for precious metals, silver set to shine in 2021 – Reuters Top 500 richest people in the world add 1.8 trillion dollars to their fortunes in 2020 – bitarafhaber.net These billionaires have grown their wealth by more than $1trillion since the coronavirus pandemic – Mazech Ancient

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Weekend Summer Links 2-3 January 2021

  Macro & Markets After golden year for precious metals, silver set to shine in 2021 – Reuters Turbulent times for travel – Bangkok Post…a big hit… Small firms: Little engines that could save the global economy – Al Jazeera Don’t Worry About a Weak Dollar. Here’s Why. – Market Watch Why Markets Boomed in

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New Years Eve Links 31 December 2020

  Macro & Markets Past epidemics raised income inequality & hurt employment prospects of the lower educated, while scarcely affecting those with advanced degrees – VOXEU Changes to the Federal Reserve’s interest-rate setting panel will make the U.S. central bank even less likely to tighten monetary policy in the new year – Bloomberg Most people