4

Fairfax readies Domainmaggeddon

Thanks to McGrathmaggeddon we know exactly what to look for in over-inflated and poorly timed exit strategy IPO. Fairfax today announced something a little similar. It’s full year result was ordinary with falling revenue but costs falling even faster to deliver a rebounding net profit after big losses last year: Needless to say, shrinking to

Latest posts

60

Will Dick Smith’s Fair Go “stuff the whole economy”?

By Leith van Onselen As expected, several “experts’ have lashed Dick Smith’s call to cut immigration, arguing that it would trash the economy. From The Australian: Economists and senior business figures have disputed Dick Smith’s claims that immigration is fuelling inequality and questioned his Grim Reaper campaign to save the nation from its “addiction to

58

Turnbull hangs himself from Baaaaanabygate

Desperation has seized both the Government and Paul Kelly: Malcolm Turnbull is a prime minister prepared to “do and say anything to try to cling to power” — this is the lethal hyperbole from Labor’s Tony Burke in his assault on the government over the Barnaby Joyce crisis, his purpose being to destroy the Prime

38

ConBank becomes TerrorBank

Oh dear, via Chanticleer: One of the ugly sleeper issues buried in the 580-page statement of claim issued by financial intelligence agency AUSTRAC against the Commonwealth Bank of Australia is the accusation the bank failed to report its suspicions that a customer had links to terrorism financing. Under the law any suspicion of terrorism financing must be

2

International shares are less volatile than Australian

Investing can be a volatile ride, the last few days have reminded us. The last few days have also reminded us why holding international equities is often beneficial for Australian investors – the Australian dollar acts as a shock absorber on returns when volatility hits, which is exactly the opposite effect that international investors get investing

18

New Melbourne suburb to absorb 2 months population growth

By Leith van Onselen Yesterday, Melbourne Planning Minister, Richard Wynne, was all over the media trumpeting a new suburb in Melbourne named Mount Atkinson that would supposedly ease Melbourne’s housing affordability crisis. From Domain [my emphasis]: Construction of a new suburb in Melbourne’s west will begin before the end of the year, with plans to

14

Louis Christopher backs immigration cuts as Saul Eslake loses his head

By Leith van Onselen SQM Research has released its rental vacancy series for July, which revealed a 0.1% fall in the national vacancy rate over the month and a 0.2% decline over the year: As shown above, rental vacancies fell or were flat rose across all capitals in July. Over the year, decreases in vacancies

18

Do foreign buyers explain the disconnect between house prices and finance?

By Leith van Onselen With the release on Friday of the ABS’ housing finance data for June, it is an opportune time to once again plot CoreLogic’s dwelling price series against the total value of finance commitments (excluding refinancings) as measured by the ABS. Note: the ABS’ housing finance data is current to June 2017,

19

Links 16 August 2017

Global Macro / Markets / Investing: Mobility and growth in top and bottom incomes – VOX Goldman Tops Banks Betting on a New Type of Hedging – Bloomberg Some Thoughts on Public Memory – Talking Points Memo Bitcoin Price Tops $4,400 As Crypto Market Nears $150 Billion – Coin Desk Shadow Fed is Glum on

35

Macro Afternoon

by Chris Becker The bounce continues across Asia with green across the board for stock markets as the USD rallies on the back of renewed vigor for interest rate rises. The Korean situation has eased in terms of tension, giving markets respite as they follow the great start to the week from transatlantic markets overnight.

32

VIC government hides foreign property buyer tax windfall

Via Domainfax: Foreign purchasers are buying as much as 40 per cent of all new apartments in Melbourne, with new figures showing a surge in a tax raised from offshore investment. Official data, released to The Age under freedom of information legislation, reveals that a tax on foreign buyers of residential property, introduced in mid-2015, has become

32

Road rage: 300,000 old, angry drivers to lose jobs to Skynet

From the US Department of Commerce: The expected introduction of autonomous, or “self-driving,” vehicles (AVs) promises to have a potentially profound impact on labor demand. This paper explores this potential effect by identifying the occupations most likely to be directly affected by the business adoption of autonomous vehicles.  In 2015, 15.5 million U.S. workers

12

Long-term arrivals into Australia surges

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released visitor arrivals and departures data for the month of June, which registered another lift in annual net permanent and long-term arrivals, which remains at turbo-charged levels. In the year to June 2017, there were 742,810 permanent and long-term arrivals into Australia – up

4

RBA minutes perfectly neutral

From the happy idiots: Domestic Economic Conditions Members commenced their discussion of the domestic economy by noting that the June quarter inflation data had been in line with the Bank’s expectations and provided further confirmation that inflation had increased since 2016. Underlying inflation was ½ per cent in the June quarter and headline inflation was only