Latest posts


Politicians rejoice as Shell farts on gas market

From the AFR: Shell has responded to the intensifying squeeze on east coast gas with a commitment to provide 10 per cent more gas for the domestic market thanks to a $500 million investment to drill more wells in south-west Queensland. “Project Ruby”, by Shell’s QGC business, represents the next chunk of investment that was required after a $1.7 billion tranche


Daily oil and LNG price update (shale revolution)

The Brent oil price continues to slip: Goldman today provides a new take on US shale: Shale’s short time to market and ongoing productivity improvements have provided an efficient answer to the industry’s decade-long search for incremental hydrocarbon resources in technically challenging, high cost areas and has kicked off a competition amongst oil producing countries


China’s cash crunch returns

Cross-posted from Investing in Chinese Stocks. Some institutions and traders were begging for capital after 4:30 PM on Monday, unable to meet financing obligations. One ag trader said, “Today we borrowed from morning to night, until after 5 PM, there were a lot of small institutions that failed to meet their obligations, I thought the interbank


Links 22 March 2017

Global Macro / Markets / Investing: We may have just moved closer to a global trade war – Business Insider Interest Rates After Inflation May Be a Real Bubble – Bloomberg Quants Are Eating Away at Wall Street’s Edge – Bloomberg Americas: FBI probe of Trump-Russia ties began 3 months before election – Yahoo James Comey’s Remarkable Five Hours


Macro Afternoon

by Chris Becker Stocks in Asia are mixed while emerging markets are enjoying a rally due to the declining USD. Commodity markets are equally volatile with Dalian off but not engaging the usual correlation with Australian mining stocks as both oil and gold prices fall off before the London open. The Shanghai Composite is just floating


Coalition roars with 18c triumph as nation yawns

At The Australian: Malcolm Turnbull has presented his government’s proposed changes to the wording of Australia’s racial vilification laws – and the administration of race-hate claims by the Human Rights Commission – as a defence of free speech. The Prime Minister said the government was “defending the law by making it clearer” and better protecting


Chevron: You can’t take or tax gas

From The Australian: Australia could resolve its energy crisis “very quickly” if it followed the lead of the US in unlocking its gas resources, the head of oil and gas giant Chevron’s Australian business says. Speaking at a Committee for Economic Development of Australia breakfast in Perth this morning, Chevron Australia boss Nigel Hearne said


RBA concerned about household debt, housing risks

By Gareth Aird, senior economist at the CBA: Key Points The RBA Board Minutes confirm that policy is on hold over the near term. Strong dwelling price growth and concerns around the further build-up of debt in the household sector mean that rate cuts are off the table. Market pricing implies very little chance of


S&P slaps the Australian mortgage linchpin on downgrade watch

No worries, mate: On March 20, 2017, we revised our rating outlook on Genworth Financial Mortgage Insurance Pty Ltd. to negative from stable (see “Genworth Australia Outlook Revised To Negative From Stable; Ratings Affirmed At ‘A+’”). In this article, S&P Global Ratings addresses the current and potential issues the outlook change could have on its


China cars red flag for iron ore

Via Bloomberg on Chinese automotive: …when January sales figures came out, they were up just 0.8 percent from a year earlier, compared with an average 14 percent pace of growth through 2016. Optimists’ hopes were undimmed: The timing of Lunar New Year made January an unusually short sales month, and their confidence looked to have been validated when


Australia’s kiwi exodus continues to moderate

By Leith van Onselen Statistics New Zealand has released its permanent & long-term migration figures for February 2017, which revealed that annual net permanent and long-term migration into New Zealand hit another all-time high 71,333 people: According to Statistics New Zealand, “about a third of all migrant arrivals for the year were people coming to New Zealand


Tumut property booms on Snowy brain fart

Specufestors. They’re just everywhere: Tumut real estate agent Lorraine Wysman has sold nearly as many properties in Talbingo since Thursday as she normally does in a year. Speculators began targeting the tiny southern NSW town after Prime Minister Malcolm Turnbull announced a potential $2 billion expansion of the Snowy Hydro scheme. Ms Wysman, who is


Mad Gotti makes more sense on gas

Gotti maintains the rage on gas today: How in Australia did we elect politicians in both the state and Federal sphere that have let us down so badly by vandalising our energy system? …Our energy crisis actually started back in the first decade of this century when in both state and federal spheres we began